Federal Reserve Bulletin, 1983-08

VOLUME 69 • NUMBER 8 • AUGUST 1983 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 • S. David Frost Griffith L. Garwood • 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 579 MONETAR Y POLICY REPORT Board's proposal to simplify the Consumer TO THE CONGRESS Leasing Act, before the Senate Committee on Banking, Housing, and Urban Affairs, By the second quarter, the recovery had July 19, 1983. gained vigor and in most respects was following a typical cyclical pattern. 601 Paul A. Volcker, Chairman, Board of Governors, discusses Federal Reserve mone- 591 STAFF STUDY SUMMARIES tary policy in the context of current and prospective economic conditions and poli- "International Banking Facilities and the cies at home and abroad, before the House Eurodollar Market" examines the impact of Committee on Banking, Finance and Urban IBFs on international banking in their first Affairs, July 20, 1983. year of operation. 609 Michael Bradfield, General Counsel, Board 592 "Seasonal Adjustment of the Weekly Mon- of Governors, discusses the issues raised by etary Aggregates: A Model-Based Ap- the Memorandum of Interrogatories conproach" describes a procedure for season- cerning developments in the legal frameally adjusting the monetary aggregates, work of the American financial system and which first requires specifying a general financial services industry, before the Submathematical form for the model that can committee on Commerce, Consumer, and describe a data series, and then estimating Monetary Affairs of the House Committee specific parameter values of the model on Government Operations, July 21, 1983. based on the series to be adjusted. 612 Governor Teeters expresses the views of the Board on the efforts to deal more effec- 593 INDUSTRIAL PRODUCTION tively with credit-card fraud through enact- Output rose about 1.8 percent in July. ment of the Credit Card Protection Act, before the Subcommittee on Consumer Af- 595 STATEMENTS TO CONGRESS fairs and Coinage of the House Committee on Banking, Finance and Urban Affairs, Preston Martin, Vice Chairman, Board of July 27, 1983. Governors, presents the views of the Board on the Regulatory Reform Act of 1983 and 613 Chairman Volcker discusses issues bearing says that the goals and objectives of regula- on the coordination of monetary and fiscal tory reform would be achieved more effi- policies and reviews how the Federal Reciently by careful analysis of individual serve formulates monetary policy and the agency functions rather than by imposition types of assumptions or goals that are used of an additional layer of administrative re- in policy formulation, before the Senate quirements as envisioned by the Regulatory Committee on Banking, Housing, and Ur- Reform Act, before the Subcommittee on ban Affairs, July 28, 1983. Administrative Law and Governmental Re- 617 Chairman Volcker outlines appropriate lations of the House Committee on the guides for the conduct of monetary policy, Judiciary, July 14, 1983. including more specific discussion of pro- 599 Nancy H. Teeters, Member, Board of Gov- posed changes in the Humphrey-Hawkins ernors, discusses a bill incorporating the Act, before the Subcommittee on Domestic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy of the House Committee their growth to slightly below the rates of 9 on Banking, Finance and Urban Affairs, and 8 percent respectively that had been set August 3, 1983. at the March meeting for the second quarter, but that Ml would probably expand at a 623 ANNOUNCEMENTS rate well above the growth that had been anticipated for the quarter. The members Reappointment of Paul A. Volcker as agreed that lesser restraint would be appro- Chairman of the Board of Governors. priate in the context of more pronounced Revisions of Regulations G and U. slowing in the growth of the broader monetary aggregates within their 1983 ranges and Proposed revision to Regulation Y; proposdeceleration of Ml growth, or of indications al to find that certain state laws are not that the pace of the economic recovery was inconsistent with the Truth in Lending Act. weakening. It was understood that the in- Dedication of the headquarters building of termeeting range for the federal funds rate, the Federal Reserve Board. which provides a mechanism for initiating consultation of the Committee, would re- Publication of comparison chart of old and main at 6 to 10 percent. new sections of Regulation T. Omission of data from table first appearing 633 LEGAL DEVELOPMENTS in "New Federal Reserve Measures of Ca- Rules regarding delegation of authority; pacity and Capacity Utilization" in the July various bank holding company and bank 1983 issue of the BULLETIN. merger orders; and pending cases. Publication of "Credit Cards in the U.S. Economy; Their Impact on Costs, Prices, Al FINANCIAL AND BUSINESS STATISTICS and Retail Sales." A3 Domestic Financial Statistics Changes in Board Staff. A46 Domestic Nonfinancial Statistics A54 International Statistics Publication of revised edition of the Federal Reserve Act. A69 GUIDE TO TABULAR PRESENTATION, Admission of five state banks to member- STATISTICAL RELEASES, AND SPECIAL ship in the Federal Reserve System. TABLES 626 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE A80 BOARD OF GOVERNORS AND STAFF At its meeting on May 24, 1983, the Committee reviewed the monetary growth A82 FEDERAL OPEN MARKET COMMITTEE ranges that it had established in February AND STAFF; ADVISORY COUNCILS for the year 1983. It decided not to change any of the ranges or the relative importance A83 FEDERAL RESERVE BANKS, BRANCHES, of the various aggregates for policy, pend- AND OFFICES ing a further review at the July meeting. For the near term, a majority of the A84 FEDERAL RESERVE BOARD members indicated their acceptance of a PUBLICATIONS directive calling for only slightly more restraint on reserve positions than had been approved at the previous meeting. It was A86 INDEX TO STATISTICAL TABLES understood that at this point M2 and M3 seemed to be on courses that would bring A88 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to the Congress Report submitted to the Congress on July 20, Given the momentum of the recovery—and 1983, pursuant to the Full Employment and the added stimulus of another reduction in per- Balanced Growth Act of 1978.1 sonal taxes at midyear—there is a strong likelihood that real gross national product will continue growing at a healthy pace through the second THE OUTLOOK FOR THE ECONOMY half of 1983. Gains in employment have generated sizable increases in income, which in turn are When the year began, an economic expansion laying the groundwork for further advances in was under way, but it was widely expected that consumer spending. And business spending on the recovery, at least in its initial phases, would equipment appears to be turning up. The cumulabe significantly less rapid than the average post- tive forces of economic expansion thus appear to war cyclical upswing. The economic recessions be well established. of the early 1980s and inflation that was more Real GNP growth in the second half as a whole moderate than anticipated had exposed serious may not match the rapid second-quarter pace, financial strains both at home and abroad— which partly reflected the sharp swing in invenstrains that in part grew out of practices that tory positions. In addition, given the level of developed during years of inflation. Consumer housing starts reached in the second quarter, and confidence was still at a low ebb, and a high with mortgage interest rates no longer falling, degree of caution was apparent in the business outlays for residential construction seem unlikecommunity. Interest rates, despite having de- ly to continue rising at the extraordinary pace of clined substantially, were still at levels that ap- early 1983. Business spending for structures may peared likely to inhibit strong growth of activity still be sluggish in the second half, particularly in interest-sensitive sectors, and a weak demand with office space in ample supply in most cities. for U.S. exports was expected to damp the pace The foreign sector, too, will exert a restraining of economic expansion. influence on growth of output in the United By the second quarter, however, the recovery States, owing to a strong dollar, relatively slow had gained vigor, and was following in most growth in the other industrial nations, and finanrespects a typical cyclical pattern. Advances in cial difficulties besetting many developing counresidential construction were exceptionally large tries. during the first half, and there were sustained Employment is likely to continue expanding as increases in consumer spending, particularly for the recovery in output progresses, with gradual durable goods. Businesses continued to liquidate declines in the unemployment rate. If past expeinventories at a rapid pace through the first rience is any guide, however, the strengthening quarter, but then apparently began rebuilding economy will itself prompt more job seekers to stocks in the second quarter as final demands enter the labor force, thereby reinforcing the strengthened. Employment gains became sub- inertia of the unemployment rate. Consequently, stantial as the recovery gathered speed, and the unemployment will remain high, relative to the unemployment rate in June—while still high his- earlier postwar period, for some time. torically—was 3/4 of a percent below the earlier The near-term outlook for inflation continues peak. to be reasonably favorable. Wage pressures have moderated further into 1983; productivity is improving; and the continued strength of the dollar 1. The charts for the report are available on request from is limiting increases in the prices of imported Publications Services, Board of Governors of the Federal goods. A partial rebound in energy prices during Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin • August 1983 the early spring, following the pronounced weak- demands are expanding rapidly in response to ness earlier in the year, appeared to be abating rising business activity, the outlook for interest by midyear. A spurt in some food prices resulting rates would clearly be affected. from bad weather does not appear to be cumulat- The difficulties of controlling federal deficits ing into a major price advance. Given these are evident in the legislative developments of considerations, as well as the favorable first-half recent months, during which there have been price performance, the chances appear excellent extensive and laborious efforts to arrive at a that inflation rates for 1983 as a whole will be as workable budget resolution. These difficulties low as, or even lower than, those of 1982. notwithstanding, unless there is further progress At the same time that the general trend of price in reducing deficits, the risk of strains in credit increase is still slowing, there are indications that markets intensifying is apparent, impairing the some of the cyclical influences that helped re- prospects for a balanced economic recovery. duce inflation during the recession have waned. • ... • A\ V. •• With demands for goods and services strengthening, price discounting is diminishing; and the ECONOMIC PROJECTIONS downward pressures on prices and wages in OF FOMC MEMBERS some markets will lessen as orders and labor demand rise. Such developments are to some Members of the Federal Open Market Commitextent inevitable. What is of critical importance tee believe that the current economic recovery is that these cyclical influences not impair more will be well maintained over the remainder of lasting progress toward reduction in the underly- 1983 and on through 1984. The central tendency ing rate of inflation, as reflected in the interac- of forecasts of the FOMC members shows this tions of wages, productivity, and costs. year's growth in real GNP ranging between 5 and Recently, the concerns on that score have 53/» percent—a significantly stronger rate of been heightened somewhat by several factors. growth than in the projections previously submit- Preliminary indications are that growth in nomi- ted to the Congress in the Monetary Policy nal GNP approached 11 percent in the second Report of last February.2 Real growth in 1984 is quarter. That high rate of spending growth is a expected to be about 1 percent slower than in welcome development insofar as it has come 1983, and the unemployment rate is projected to about in the context of accelerated growth of real trend lower through the end of next year.ta output and moderating prices. However, growth Most FOMC members expect this year's inin some measures of money and credit also has crease in the GNP implicit price deflator to range been relatively large recently, and growth in between 4lA and 43A percent—about the same as nominal spending at the present rate over a last year's increase and in line with the projecsustained period would suggest renewed infla- tions of the February Monetary Policy Report. tionary pressures. There is less consensus about the inflation out- The vigor of the private economy at midyear look for 1984, with some concerned that inflation also has underscored the potential problems as- is likely to accelerate. However, most FOMC sociated with federal budget deficits that will members feel that, with appropriate policies, remain massive in the years ahead, unless there prices overall are likely to rise in the same range are decisive actions to reduce expenditures or— as, or only a shade more rapidly than, in 1983. absent such action—to increase revenues. Pros- The cyclical strengthening of demand associated pects for interest rates are related to a number of with the recovery is one factor in this inflation factors, including importantly the actual and projection, but price developments next year will perceived trend in inflation. In 1982 when the also reflect a number of special factors, such as economy was mired in recession and the inflation policies to reduce farm product supplies and rate was falling, record-large government deficits raise farm incomes, cost pressures from inwere consistent with declining interest rates. However, should public credit demands remain 2. "Monetary Policy Report to Congress," FEDERAL REat or near record highs while private credit SERVE BULLETIN, vol. 69 (March 1983), pp. 127-40. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 581 Economic projections for 1983 and 1984 recovery progresses, wage and price developments will need to be monitored with great care FOMC Members Admin- to make sure that these still-present expectations Item Range Central i t s i t o r n a- of inflation are not undergirding a new round of tendency acceleration in actual wage and price increases. Percent change, fourth More generally, the United States has become quarter to fourth quarmuch more integrated into the world economy ter, 1983 Nominal GNP 9'/4 to 10% 93/4 to 10 10.4 than it was a decade ago, and our economic Real GNP 4% to 6 5 to 53/4 5.5 Implicit deflator for GNP... 4 to 5V* AY* to 4% 4.6 fortunes have become closely linked with those of other nations. Because of those close linkages, Average level in the fourth quarter, percent the economic difficulties of many foreign na- Unemployment rate 9 to 93/4 About 9'/2 9.6 tions, particularly the serious financial problems Percent change, fourth quarter to fourth quar- still plaguing many developing countries, could ter 1984 affect this nation's economic performance in the Nominal GNP 7 to lO'A 9 to 10 9.7 Real GNP 3 to 5 4 to 4Vi 4.5 period ahead. Implicit deflator for GNP... 33/4 to 6V2 4'/4 to 5 5.0 To some extent, these risks in the economic Average level in the fourth quarter, percent outlook can be moderated by appropriate poli- Unemployment rate 8'A to 9'/4 8'/4 to 8% 8.6 cies. For example, the risk of a further deterioration in the economic prospects facing the develcreased payroll taxes, and the possibility of some oping nations can be lessened if lenders, weakening in the foreign exchange value of the borrowers, national authorities, and internationdollar. al organizations maintain the high degree of M The central tendency projections of the FOMC cooperation that has become evident in the past members, for prices as well as for real GNP and year. Prompt action by the United States to unemployment, are closely in line with the eco- bolster the resources of the International Monenomic assumptions prepared by the administra- tary Fund and of the multilateral development tion for its midsession review of the budget. banks is an essential element in managing suc- While most FOMC members are relatively cessfully a difficult adjustment process. optimistic about the prospects for maintaining This country's budgetary problems also are economic growth and containing inflation over manageable, provided the Congress and the adthe next year and a half, they also are mindful of ministration take action. The Federal Reserve, potential difficulties that could disrupt the out- for its part, remains committed to monetary look and cause the nation's economic perfor- policies that will provide enough money and mance to be less favorable than is now expected. credit to support economic growth in a context of There is, as already noted, the prospect that containing inflation; without reductions in future federal budget deficits will remain extremely fiscal deficits, the goal of maintaining a balanced large into the indefinite future; as the private recovery while at the same time holding down recovery lengthens, the dangers associated with inflation could prove elusive. those deficits are likely to increase, posing a threat to both the inflation outlook and the sustainability of a balanced expansion. • THE FEDERAL RESERVE S OBJECTIVE FOR There also are some broader risks, not specifi- GROWTHQFMONEYAND CREDIT cally related to the budget, that some of the progress against inflation could be reversed as The Committee reviewed its target ranges for the private economy strengthens. The persis- 1983 and established tentative ranges for 1984 in tence of inflationary expectations is evident both light of its basic objectives of encouraging susin recent surveys of private opinion and in the tained economic recovery while continuing to behavior of financial markets in which borrowers make progress toward stability in the average remain willing to pay high nominal rates of level of prices. In setting these ranges, the Comretun£^:<Jpag-tenDi debt instruments. Agdpfe mittee recognized that the relationships among Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin • August 1983 the money and credit aggregates and economic tied "The Growth of Money and Credit in the activity in the period ahead are subject to consid- First Half of 1983," an unusual, sizable decline erable uncertainty; consequently, it was empha- in the velocity of Ml has been experienced over sized that, in implementing policy, the signifi- the past several quarters, likely reflecting in part cance to be attached to movements in the various the fact that interest-bearing, negotiable order of aggregates would depend on evidence about the withdrawal (NOW) accounts have become an strength of economic recovery, the outlook for important component of Ml. These accounts, prices and inflationary expectations, and emerg- which have both savings and transaction characing conditions in domestic and international fi- teristics, appear to have increased the response nancial markets. of Ml demand to changes in market interest With respect to the ranges for the broader rates, which may explain a good part of the monetary aggregates—M2 and M3—the Commit- acceleration of growth in Ml that began last tee reaffirmed the 1983 ranges of 7 to 10 percent summer. Also, particularly in the course of 1982, and 6V2 to 9VI percent respectively that had been demand for Ml may have increased because established earlier in the year. The tentative savers sought to hold funds in highly liquid forms ranges for next year set for these aggregates were in light of various economic and financial uncerreduced V2 percentage point to 6V2 to 9V2 percent tainties. and 6 to 9 percent respectively, measured in both Recent evidence suggests that the decline in cases from the fourth quarter of 1983 to the the velocity of Ml may be abating. The income fourth quarter of 1984. velocity of Ml evidently declined only modestly It was expected, in setting these tentative in the second quarter of this year. As the upward ranges, that shifts into money market deposit impact on Ml demand of earlier interest rate accounts (MMDAs) would not significantly dis- declines has faded and a sizable buildup in liquid tort growth in the broader aggregates, particular- balances has taken place, it seems probable that ly M2, in contrast to the experience in the early some pickup in the velocity of Ml will develop part of this year. However, it was also recog- over the quarters ahead, in closer conformance nized that the greater flexibility in liability man- with cyclical and secular patterns of earlier agement for banks and thrift institutions resulting years. from the availability of MMDAs, together with Whether any rise in velocity would be as the recent decision of the Depository Institutions strong as in earlier decades of the post-World-II Deregulation Committee to eliminate ceiling period remains uncertain. Experience to date rates on time deposits by October 1 of this year, with a measure of Ml that reflects to a greater would be a factor encouraging somewhat more extent the savings propensities of the public, as rapid growth in M2 relative to M3, as banks and well as transaction demands, has been relatively thrifts may rely relatively less on large CDs and limited, which makes it difficult to assess its other money market liabilities in funding credit behavior under varying economic circumexpansion.3 With greater growth in real (and stances. Moreover, it is not clear how responsive nominal) GNP than anticipated earlier—but in Ml demand will be to market interest rates over the context of moderating inflation—actual the period ahead if Super NOW accounts, which growth in M2 and M3 may reasonably be higher yield a market return to holders, become a more in the ranges than was thought likely earlier. important element in the aggregate. (If the au- The FOMC also agreed that principal weight thority to pay interest on transaction balances would continue to be placed on the broader were extended beyond currently eligible acmonetary aggregates in the implementation of counts, this too would affect Ml behavior, premonetary policy, in view of the continuing uncer- sumably in the short run increasing the demand tainties that attach to the behavior and trend of for the aggregate. No specific allowance has Ml over time. As discussed in the section enti- been made for that possibility.) Taking account of these various uncertainties, for the purpose of monitoring Ml behavior, the 3. Except for accounts of less than $2,500 maturing in 31 Committee established a growth range of 5 to 9 days or less. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 583 percent (annual rate) for the period from the from complete. At midyear, 10 percent of the second quarter to the fourth quarter of this year. civilian labor force was still unemployed. Many The decision to establish a new base for monitor- companies continue to face major adjustments in ing Ml reflected a judgment that the rapid growth an effort to stay competitive in their industries over the past several quarters should be treated here and abroad. Some domestic energy producas a one-time phenonemon, neither to be re- ers remain in financial difficulty, as do many traced nor long extended. A monitoring range of producers in the agricultural sector. The nation's 4 to 8 percent was tentatively established for the external sector continues to be a weak link in the period from the fourth quarter of 1983 to the recovery, as exports are being limited by a strong fourth quarter of 1984. These ranges anticipate dollar, the sluggishness of a number of other no further decline in the velocity of Ml during a industrialized economies, and the severe adjustperiod of relatively strong growth in economic ment problems of much of Latin America; the activity and allow for the likelihood of some international indebtedness and related economic rebound in velocity. Ml growth would be expect- difficulties of a number of developing countries ed to move lower in these ranges as and if remain matters of particular concern. velocity strengthens. This country's period of moderating inflation The Committee reaffirmed the range of 8V2 to lengthened in the first half of 1983. In 1982, many 11 Vi percent used for monitoring the behavior of price measures recorded the smallest increases domestic nonfinancial sector debt in 1983. That in a decade, and price developments so far this range was reduced to 8 to 11 percent for 1984. year have been even more favorable. Transitory The federal government next year is expected to elements clearly have played a part in this imcontinue absorbing an unusually large share of proving price performance, but there also continoverall credit supplies. The Committee's range ue to be indications of more lasting progress. In would encompass the possibility of growth of particular, productivity has been improving and total debt in excess of likely GNP growth (and increases in compensation continue to moderate, the long-term trend of credit in relation to GNP) so that the interactions between costs and prices, in light of the analysis of various factors bearing which imparted a stubborn momentum to inflaon credit growth. Nevertheless, the prospect of tion through the 1970s, are still working to reintensifying conflict between sustained large duce the underlying or trend rate of inflation. government requirements and growing private However, even though prices have slowed sector credit demands is a serious concern. dramatically, concerns persist that inflation will reaccelerate as the recovery progresses. To a considerable extent, these concerns arise from THE PERFORMANCE OF THE ECONOMY IN the experience of past business cycles and from THE FIRST HALF OF 1983 an expectation that the federal government's budget deficits will remain massive in the years The economic expansion that began at the end of ahead, making more difficult the sustained appli- 1982 gathered momentum over the first half of cation of a noninflationary monetary policy. Be- 1983. After increasing moderately in the first cause of such concerns about the future, as well quarter, real gross national product registered a as the present high level of actual government strong advance in the second quarter, as produc- borrowing, short- and long-term interest rates in tion and employment rose in a broad range of the first half of 1983 continued to be quite high, industries. An apparent completion of the reces- relative both to historical experience and to the sion-induced inventory liquidation accounted for current pace of inflation. much of the second-quarter growth; but domes- As had been true during the recession, governtic final sales also strengthened considerably, ment debt rose rapidly in the first half of 1983; in and forward-looking indicators point to further addition, household borrowing picked up as the output gains in the months ahead. expansion accelerated. Even though the growth To be sure, a number of serious economic in business borrowing remained relatively low, problems remain. The economic recovery is far total debt outstanding in the domestic nonfinan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin • August 1983 cial sectors grew at an annual rate of about IOV2 the nominal disposable incomes of consumers percent—a faster pace than in 1982. Debt grew had been unusually well maintained by a combifaster in the second quarter than in the first. nation of countercyclical transfer payments, ris- Money holdings also increased rapidly in the ing interest income, and reductions in tax rates. first half of 1983, as a strengthening of private A rapid decline in inflation enhanced the purspending bolstered the demand for transaction chasing power of these nominal income gains, balances and as lower interest rates led many and by the end of 1982, real disposable personal individuals and businesses to hold a larger por- income was about 2 percent above its prerecestion of their financial assets in the form of money sion level of mid-1981. balances. In addition, money growth also was Households have strengthened their balance affected by portfolio shifts arising from the pro- sheets considerably in recent years by acquiring gressive liberalization of regulations on deposit large amounts of liquid assets and holding down rates; these shifts were especially important in the accumulation of new indebtedness. In addiboosting growth of the broader monetary aggre- tion, a sharp, sustained rise in stock prices added gates early in the year. considerably to household wealth after mid-1982. Thus, when aggregate wage and salary income began rising with the upturn in activity, consum- Interest Rates ers were well positioned to boost spending on goods and services. Short-term interest rates had fallen sharply in the After a period of sluggish growth through most second half of 1982, when the recession was of 1982, consumer spending improved toward the deepening; and by the end of last year, rates end of last year and strengthened further in the were only about half the peak levels of 1981. first half of 1983. Second-quarter spending, in Yields then fluctuated in a relatively narrow particular, was quite vigorous, as purchases of range through most of the first half of 1983, autos and other big-ticket items increased markbefore moving a little higher around midyear as edly. Sales of domestic autos were at an annual the recovery strengthened. At midyear, short- rate of about 63/4 million units in the second term yields were generally 50 to 125 basis points quarter, the best quarterly sales pace since midabove their December levels; the Federal Re- 1981; sales of foreign models were maintained at serve discount rate remained unchanged over the a rate of about 2XA million units. first half of the year. With income growth accelerating, economic Long-term rates eased further into early 1983, prospects brightening, and interest rates lower extending the decline that began in mid-1982. than in 1982, consumers became more willing to The further reduction in long-term yields result- take on new debt in the first half of 1983. In ed from beliefs that the recovery might be rela- addition, lenders showed a greater interest in tively weak, thereby limiting private credit needs making consumer loans, partly—in the case of and, at the same time, enhancing the prospects depository institutions—as an outlet for investfor a continued moderation of price inflation. In ing the large inflows to new accounts. Thus, after the second quarter, however, long-term rates rising only 4 percent in 1982, installment debt turned up slightly as economic activity strength- rose at more than a 7 percent annual rate in the ened further and as market participants began to first quarter, and still faster growth appears to focus more directly on the potential effects of have occurred in the second quarter. heavy federal borrowing and the implications of continued rapid money growth. Business Spending Consumer Spending Economic conditions in the business sector also have improved. Reduced interest rates, the elim- Much of the vigor of the current expansion has ination of unwanted inventories, and an expandarisen from increases in income and spending in ing economy have relieved some of the financial the household sector. Throughout the recession, strains brought on by the recession and, at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 585 same time, have created a better climate for gradually lower before firming in the past two investment spending. Business cash flows im- months. Mortgage credit flows increased strongproved in the first half, as profit margins widened ly in the first half—especially at thrift instituconsiderably. Buoyed by rising investor confi- tions, whose fund availability was enhanced by dence, stock prices rose to new highs, enabling the advent of new deposit instruments. businesses to rely heavily on equity financing In response to the drop in financing costs, as while limiting the growth in indebtedness. In well as demographic influences, home sales addition, encouraged by bond yields that were turned up in 1982 and rose rapidly through the well below earlier peaks, firms strengthened first half of 1983. By the second quarter of 1983, their balance sheets by shifting their borrowing sales were up nearly a third from the final quarter toward longer-term maturities. These general of 1982; both new and existing homes shared in trends notwithstanding, many firms that were the sales gains. With the inventory of unsold new weakened by the recession continued to face homes quite low, rising sales have supported a financial difficulties in the first half of 1983, and strong advance in new construction activity. the number of business bankruptcies—though Continuing the uptrend evident in 1982, starts of declining—remained high. new single-family homes in the first five months Business investment spending, which fell near- of 1983 rose to a level about three-fourths above ly 8 percent in real terms during the recession, a year earlier—a sharper rebound than many turned up in the first half of 1983, as real outlays analysts had expected in light of prevailing mortfor equipment rose in both the first and second gage rates. Starts of multifamily units also have quarters. In contrast to equipment, spending for been quite strong so far in 1983, partly reflecting structures fell appreciably during the first half of enhanced profitability in the markets for rental 1983, led by reduced outlays for commercial and property. Low levels of housing construction industrial buildings. With office and industrial over the past few years clearly left a sizable pentvacancy rates now quite high, it may be some up demand that has provided strong support for time before the expanding economy generates a new construction activity. sustained increase in outlays for these types of facilities. Businesses had liquidated inventories at a rap- Government Sector id pace during the recession in an effort to bring stocks more in line with the recession-reduced Federal spending declined moderately during the sales levels, and the momentum of that liquida- first half of 1983, but the drop resulted mainly tion carried into early 1983. More recently, with from transitory factors, particularly a reduced final sales continuing to rise, businesses appear rate of accumulation of farm inventories by the to have begun a cautious rebuilding of stocks. In Commodity Credit Corporation (CCC). Abthe second quarter, a move from sizable inven- stracting from these inventory swings, federal tory liquidation to an apparent small accumula- expenditures were still trending up in the first tion of stocks provided a strong impetus for half. Excluding outlays of the CCC, federal purincreased production, resulting in a rise in sec- chases of goods and services, in current dollars, ond-quarter GNP much larger than the advance appear to have increased at an annual rate of in final sales. more than 10 percent from the fourth quarter of 1982 to the second quarter of this year. The federal budget deficit was extremely large Residential Construction in the first half of 1983. Because of changes in tax laws and, until recently, slow growth in taxable Responding to lower interest rates, activity in the incomes, receipts have increased only moderatehousing sector rose sharply in late 1982 and ly from the levels of two years ago. During the increased further in the first half of this year. At same period, spending has increased considerathe end of last year, mortgage rates were about 5 bly, owing to increased defense purchases, repercentage points below the peak rates reached cession-induced transfer payments, and, on avin the fall of 1981, and they continued to trend erage, relatively high payments to support farm Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin • August 1983 incomes. As a result, the combined federal defi- tries, including some that are major trading partcit (unified plus off-budget) accumulated to about ners of the United States. Among these nations, $95 billion over the first half of 1983, three times reduced trade volume and depressed commodity the level of a year earlier. During the first half, prices have limited export earnings and—in the direct federal borrowing (which does not include face of high world interest rates—made debt federally guaranteed loans or the debt of spon- repayment difficult. So far, these repayment sored credit agencies) absorbed more than two- problems have been contained through an exfifths of all funds raised in credit markets by the traordinary degree of cooperation among bordomestic nonfinancial sectors. rowers, private creditors, national authorities, Real state and local government purchases and international organizations; in many inedged lower in the first half of 1983, extending stances, existing debts have been restructured, the gradual decline evident over the preceding new funds have been raised, and the borrowing two years. Real outlays for employee compensa- nations are implementing programs to restore tion and new construction spending were held internal financial stability, to increase their debtdown by the budget concerns still apparent servicing capacity, and to convince international among many states and localities. As in 1982, a lenders of their creditworthiness. Nevertheless, number of governmental units raised taxes to the process of adjustment is still far from comrelieve pressing financial difficulties. By mid- plete. year, however, some of the budgetary strains began to ease, as rising economic activity expanded the state and local tax base, boosting the sector's overall operating budget back into sur- Labor Markets plus. Borrowing by state and local governments also Labor markets began to strengthen around the increased rapidly, though part of the rise proba- turn of the year, and by June, payroll employbly reflected a rush to market debt instruments in ment had increased 1.1 million from its Decemadvance of a new requirement that securities be ber trough, regaining more than one-third of the issued in registered, rather than bearer, form; the losses sustained during the recession. Job gains requirement deadline took effect on July 1, after have been widespread over the past six months, having been postponed from January 1. In addi- with especially large advances in services and tion, tax-exempt borrowers took advantage of manufacturing. In manufacturing, increases in lower interest rates to refund or prerefund bond employment during the past six months have issues that were sold when borrowing costs had retraced nearly a fifth of the 2 million jobs lost been higher. during the 1981-82 recession. Employment growth in the services industry, which had slowed during the recession, appears to be show- The International Sector ing renewed vigor as the expansion has taken hold. As in 1982, net exports continued to exert a The total number of unemployed workers denegative influence on U.S. economic activity in clined almost a million during the first half of early 1983; slow growth in foreign industrial 1983, and the civilian unemployment rate fell to economies and a strong dollar have both con- 10 percent, 3A of a percentage point below the strained export sales. At the same time, the postwar peak reached last December. Layoffs vigorous expansion in the U.S. domestic econo- had begun easing late last year, and with labor my pushed imports higher, so that the trade demands strengthening through the first half, account showed an increasing deficit over the many firms have started rehiring. Despite these first half of the year. gains, jobless rates at midyear remained far above the levels of late 1979, before the two An additional element limiting prospects for back-to-back recessions that added greatly to U.S. exports is the serious external financing labor market slack in the early 1980s. problems facing a number of developing coun- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 587 Wages and Labor Costs December to May, and over the first half the producer price index for finished goods actually The falloff of labor demand during the recession, declined. An acceleration of prices from the first along with the general unwinding of inflation, led to the second quarter resulted mainly from to a sharp slowing in the rate of wages and labor swings in energy prices that appear to be tempocost increases, and that slowdown has continued rary and from the transitory effects of adverse into the first half of 1983. From the fourth quarter weather on the prices of some foods. The prices of last year to the second quarter of 1983, the of raw industrial materials rebounded from deaverage hourly earnings of production workers pressed levels early in the year, but have leveled rose at about a 4lA percent annual rate, the off in recent months. In other markets, including slowest rate of nominal wage increase since the those for both consumer goods and capital equipmid-1960s. But, because the rise in consumer ment, price inflation in the second quarter still prices has slowed even faster, the slower nomi- seemed to be trending lower. nal wage gain has been consistent with increases Price increases during the past year have been in real purchasing power. the smallest since the early 1970s, and the period The slowing of nominal wage increases has of moderating inflation has now extended over been broad based, affecting nearly all major 2Yi years. Still, the recent period of slower price industrial and occupational groups. With infla- increases has by no means erased the memories tion easing, workers in general are feeling less of accelerating inflation during the previous two pressure to catch up with past inflation or to try decades. The recent deceleration in prices octo stay ahead of anticipated future inflation. In curred during a business recession, and there addition, in industries particularly hard hit by remains a deep-seated skepticism about whether recession, as well as by heightened domestic or the gains against inflation can be maintained as foreign competition, workers have agreed to the period of economic expansion is extended. contract adjustments calling for wage freezes or The task of economic policy is to overcome that outright wage reductions. skepticism by preserving the gains already won Unit labor costs also moderated further in the against inflation while sustaining the economic first half of 1983, as strong productivity gains expansion that took hold in the first half of 1983. reinforced the impact of smaller wage increases. In the nonfarm business sector, labor costs rose at only a VA percent rate in the first quarter, and THE GROWTH OF MONEY AND CREDIT IN evidently the second-quarter advance also was THE FIRST HALF OF 1983 quite moderate. The sizable productivity gains of recent quar- The 1983 ranges for the monetary and credit ters have been an especially encouraging devel- aggregates announced in February were chosen opment because they may reflect not only the by the Federal Open Market Committee with the customary cyclical patterns of an economic ex- objective of providing sufficient liquidity to suppansion, but also some improvement in the trend port economic recovery while continuing to enrate of productivity growth. Work rules in many courage progress toward price stability. In setestablishments are being revised to enhance effi- ting those guidelines, the Committee recognized ciency, and qualitative reports from the business that the relationship between growth of the monsector point to strong efforts to trim costs and etary aggregates and economic activity had deviimprove market competitiveness. ated from usual historical relationships during 1982, and looking ahead, account had to be taken of the possibility that past patterns might be Price Developments shifting in some respects. Specifically, during 1982, monetary growth Price developments continued to be favorable in had been quite rapid relative to income; the the first half of 1983. The consumer price index velocities of both Ml and M2 had registered rose at an annual rate of only 3 percent from exceptionally large declines over the year. Al- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin • August 1983 though these declines in velocity were thought 7 to 10 percent for the period from Februarylikely to be in part temporary—Ml velocity in March of 1983 to the fourth quarter of 1983; and particular commonly has increased appreciably for M3, 6V2 to 9VZ percent for the period from the in the early stages of a recovery—it also was fourth quarter of 1982 to the fourth quarter of believed that the experience of 1982 might well 1983. Also for the latter period, a tentative range be indicative of a more basic shift in the underly- was established for Ml of 4 to 8 percent, with the ing demands for money. Institutional changes width of this range reflecting the relative uncerhave led to the increased availability of transac- tainty about the behavior of this aggregate. An tion accounts that bear interest, which would be associated range of growth for total domestic likely to increase the public's willingness to hold nonfinancial debt was estimated to be 8V2 to IV/2 Ml-type accounts. These accounts are used part- percent, December to December, while bank ly as repositories for savings, as well as to credit growth was expected to be between 6 and support transactions, and this tendency was ex- 9 percent for the year. pected to be reinforced by the introduction of Growth in M2 and M3 appears to be broadly Super NOW accounts. consistent with the target ranges adopted in The Committee also recognized that the intro- February. M2 expanded through June at a 9 duction of new deposit instruments had affected, percent annual rate from the February-March and would continue to affect, the behavior of the base period, a little above the midpoint of its broader aggregates. A very substantial inflow of range. M3 growth was somewhat stronger and, at funds into money market deposit accounts 9V percent from the fourth quarter of 1982 2 (MMDAs) from market instruments had greatly through June, was at the upper end of its target inflated growth of M2 at the end of 1982 and in growth path. In contrast, Ml continued to surge, the early weeks of 1983. It was anticipated that with growth averaging 14 percent at an annual further flows into these accounts, and to a lesser rate from the fourth quarter of last year, r extent into Super NOW accounts, would contin- In setting the annual target range for M2, the ue to affect the aggregates for some time, al- Committee selected the February-March base though the impact could not be determined with period to reduce the distortions resulting from a high degree of accuracy. the massive inflows to MMDAs after the intro- In implementing policy, Committee members duction of these accounts in December. Moreagreed that, for the time being, primary emphasis over, the range of 7 to 10 percent was 1 percentwould be placed on the broader aggregates. It age point higher than that set for 1982, to allow was expected that distortions resulting from the for some residual shifting from outside M2 into initial adjustment to new deposit instruments these accounts through the remainder of the would lessen. The behavior of Ml would be year. There is growing evidence that the stock monitored, with any increase in the emphasis adjustment to MMDAs is abating; inflows to placed on that aggregate dependent on evidence these new instruments slowed from around $17 that its velocity behavior was assuming a more billion per week in February to an average of predictable pattern. Debt expansion, although about $1 billion weekly in June. Thus, it appears not targeted directly, would be reviewed in as- that the distorting effects of these instruments sessing the behavior of the monetary aggregates have, as expected, become relatively minor as and the stance of monetary policy. The Commit- time has progressed. The interest rates offered tee emphasized that, given the above uncertain- on these deposits—in absolute level and relative ties, policy implementation in 1983 would require to other short-term rates—have fallen consideraa greater degree of judgment, involving crucially bly from the extraordinary yields posted immedithe evaluation of the relationship of monetary ately after the introduction of this account. Since growth to movements in income and prices, until March, the average rates on MMDAs have been such time as the aggregates returned to more below rates available on virtually all market predictable behavior. instruments, although they remain somewhat above the returns on money market mutual The specific target ranges announced in Februfunds. £ ary were the following: for M2, an annual rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 589 The recent behavior of other components of new accounts are difficult to assess, but would M2 also appears to reflect the waning of the appear to have been largely offsetting. Funds public's initial adjustment to the availability of shifted into Super NOWs from outside Ml likely MMDAs. Runoffs of small-denomination time were about equal in magnitude to the outflow of deposits and M2-type money market funds, funds from Ml into MMDAs. Nevertheless, Ml which were substantial during the first quarter, has been growing at a rate well above the range have slowed considerably, and in fact small time of 4 to 8 percent that was set in February and deposits registered a slight increase in June. much faster relative to nominal GNP than has Savings deposits, which likewise had declined by been normal during periods of economic recovrecord amounts earlier in the year, increased at a ery, when velocity has tended to rise at abovemoderate rate in May and June. average rates. In fact, the income velocity of Ml For M3, the range selected of 6 to 9 percent continued to decline during the first half of the was identical to that for 1982. It was believed year, although the second-quarter decline was that M3 would be less affected by the new modest. accounts because some of the funds flowing into The decreases in Ml velocity may reflect in them would come directly from large deposits substantial part the changing nature of Ml. With and, in any case, many depositories have the interest-bearing regular NOW accounts and Suoption of reducing their issuance of large CDs in per NOWs making up a growing share of Ml, this response to greater inflows to MMDAs or other aggregate is becoming increasingly influenced by core deposits. However, the extent to which this components that bear interest and thereby may would occur depends in part on changes in the attract "savings" as well as transaction balpublic's perceptions of the desirability of insured ances. Indeed, there is evidence that the introdeposit accounts relative to open market instru- duction of nationwide NOW accounts at the ments and the willingness of depositories to beginning of 1981 has made Ml more responsive make use of their new deposit authority to in- to fluctuations in market rates. With market rates crease the extent of their financial intermedia- registering large declines in the latter half of 1982, tion. In the event, large CDs in the aggregate the opportunity cost of holding NOW accounts— declined sharply in the months after the introduc- which carry a ceiling rate of 5lA percent—fell tion of the new accounts, but have tended to pick sharply. As money demand usually responds to up recently as inflows to MMDAs have slowed. falling rates with a lag, this would help explain Besides running off large CDs, commercial the strong growth of Ml in the latter half of 1982 banks responded to the influx of MMDA funds and early 1983. More recently, however, some of by increasing their holdings of liquid assets, the strength likely reflected growing transaction principally Treasury securities; commercial bank needs accompanying the pickup in economic holdings of Treasury securities expanded at an activity. Given the limited experience with NOW annual rate of more than 50 percent during the and Super NOW accounts, uncertainty surfirst half of the year. Small banks in particular, rounding Ml behavior remains substantial, but which rely less on managed liabilities than do account should be taken of the possibility that large banks, invested heavily in these assets. more normal cyclical patterns may be returning. Savings and loan associations appear to have Full data are not yet available for the second relied largely on asset adjustments to MMDA quarter, but preliminary indications are that the inflows. These institutions showed a sharp accel- aggregate debt of domestic nonfinancial sectors eration in their holdings of cash and investment grew over the first half at a rate somewhat above securities over the first quarter of 1983, and only the midpoint of the range of &V2 to W/2 percent moderate declines in large time deposits. In the projected by the FOMC, with a marked increase second quarter, with slower inflows to the new in the second quarter. This aggregate was swolaccounts and an apparent pickup in mortgage len by federal borrowing, which has accounted lending, issuance of large time deposits by sav- for more than 40 percent of total credit flowing to ings and loans registered a sizable increase. domestic nonfinancial sectors since December. The impacts on Ml of portfolio shifts into the As indicated in the accompanying table, growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin • August 1983 Domestic nonfinancial sector debt Commercial bank credit, boosted by heavy Annual rates of growth, in percent1 acquisitions of Treasury securities, has expanded at an annual rate of IOV2 percent since Decem- U.S. Non- State and Period Total govern- House- financial local gov- ber. Reflecting the general weakness in business holds ment business ernment demand for short-term credit, business loans at Annually2 commercial banks were about flat over the first 1979 12.1 6.0 15.1 13.5 7.4 half, while bank mortgage and consumer lending 1980 9.9 11.9 8.7 10.1 9.3 1981 9.9 11.8 8.2 11.3 7.0 has picked up. Some of the buildup of Treasury 1982 9.5 19.4 5.6 7.4 13.4 securities could be a temporary response to Quarterly3 1982:3 ... 10.2 24.5 4.9 8.1 9.2 strong inflows to MMDAs, held as a hedge 1982:4 ... 9.8 24.5 5.9 3.7 18.2 against possible withdrawals as rates on MMDAs 1983:1 ... 9.6 19.1 7.4 5.3 13.5 remain below market yields. On the other hand, 1983:2 ... 11.4 23.0 8.5 5.4 19.1 since some investors evidently shifted funds to 1. Based on end-of-period data. insured MMDA accounts from open market in- 2. December to December. struments, the increase in investment holdings 3. End-of-quarter to end-of-quarter. p Preliminary could mark a permanent increase in overall intermediation by commercial banks, thereby raising bank credit above its normal range. Indeed, as in federal debt has been very rapid in recent thrift institutions likewise have become more quarters, averaging in excess of 20 percent at an competitive with the introduction of MMDAs, annual rate over the last four quarters. Residen- the share of total credit extended by all depositial mortgage financing and consumer credit have tory institutions rose appreciably over the first picked up since last year, reflecting the strength- half of this year; about 40 percent of domestic ening of these sectors. Business borrowing has nonfinancial credit was extended by depositories remained moderate due to reduced needs for during the first half, compared with an average of external financing and has been concentrated less than 30 percent from 1980 through 1982. mainly in longer-maturity debt; short- and inter- During the first half, acquisitions of Treasury mediate-term business borrowing has been weak securities by commercial banks helped to absorb since the fourth quarter of last year. Borrowings the massive increase in Treasury financing, but, by state and local governments were strong as private demands for credit pick up in response during the first half, as noted earlier, partly to rising business activity, such an absorption of reflecting heavy issuance of tax-exempt bonds in Treasury debt may be more difficult within the advance of the July 1 registration date and bor- context of noninflationary growth of the monerowing for future refunding of higher-cost debt. tary aggregates. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

591 Staff Studies The staffs of the Board of Governors of the sarily indicate concurrence by the Board of Gov- Federal Reserve System and of the Federal ernors, by the Federal Reserve Banks, or by the Reserve Banks undertake studies that cover a members of their staffs. wide range of economic and financial subjects. Single copies of the full text of each of the From time to time the results of studies that are studies or papers summarized in the BULLETIN of general interest to the professions and to are available without charge. The list of Federal others are summarized in the FEDERAL RESERVE Reserve Board publications at the back of each BULLETIN. BULLETIN includes a separate section entitled In all cases the analyses and conclusions set "Staff Studies" that lists the studies that are forth are those of the authors and do not neces- currently available. STUDY SUMMARIES INTERNATIONAL BANKING FACILITIES AND THE EURODOLLAR MARKET Henry S. Terrell and Rodney H. Mills—Staff, Board of Governors Prepared as a staff paper in early 1983 The Federal Reserve Board permitted the estab- mediation to the United States from "shell" lishment of international banking facilities (IBFs) branches of U.S.-chartered banks and from forin the United States beginning in early December eign-chartered banks in the Bahamas and the 1981. The Board took this action to allow U.S. Cayman Islands. Other than these shifts of existoffices of depository institutions to be more ing transactions, IBFs do not appear to have had competitive in conducting banking business with important effects on international banking. The non-U.S. residents. Through IBFs, non-U.S. evidence does not indicate that, during the first residents can conduct banking transactions in the year of their existence, IBFs have caused a shift United States free of any reserve requirements of activity from foreign-chartered to U.S.-charor interest rate limitations, and without the costs tered banks (considered on a global scale), have of FDIC insurance. In addition, various states accelerated the growth of total international have amended their tax structures to grant IBFs banking activity, or have reduced differentials relief from locally imposed taxes. IBFs have between U.S. and Eurodollar interes't rates. rapidly become an important locale for interna- The study concludes that IBFs should be tional banking activity. By December 1982 their viewed as another step in the general process of assets exceeded $160 billion, of which one-half deregulation of banking. Because they owe their was assets of U.S. branches and agencies of existence to the regulatory structure of U.S. foreign banks. banking markets, IBFs—along with the conven- This staff study is an empirical examination of tionally defined Eurodollar market—will in turn the impact of IBFs on international banking in be affected by future deregulation of the U.S. their first year of operation. The IBFs have banking and financial system. resulted in a shift of international financial inter- An additional summary follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin • August 1983 SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY AGGREGATES: A MODEL-BASED APPROACH David A. Pierce, Michael R. Grupe, and William P. Cleveland— Staff, Board of Governors Prepared as a staff paper in early 1983 For some time, members of the Board's staff stochastic is described via a seasonal time-series have been engaged in research aimed at improv- model. The latter yields a seasonal adjustment by ing seasonal adjustment techniques for the mone- a symmetric moving average, as does the tary aggregates. Much of this research has fo- Board's current procedure. The overall seasonal cused on model-based seasonal adjustment, which factor is then formed by combining the factors requires first specifying a general mathematical derived from the regression and the movingform for a model that can describe a data series average procedures. and then estimating specific parameter values of For the weekly monetary aggregates, the rethe model based on the series to be adjusted. gression part of the model contains independent Model-based procedures thus account better for variables designed to capture the basic seasonal the particular seasonal characteristics of the se- pattern, including both annual and within-month ries than does the Census X-ll program (on effects, as well as special effects due to holidays which the Board's current procedure is based), and the vagaries of the calendar. It also incorpowith its sets of predetermined moving averages. rates the technique of "intervention analysis" Staff research on model-based procedures has for unusual movements, such as those occurring received a strong impetus from the Board's re- as a result of the credit restraint program in 1980. cently published report, Seasonal Adjustment of For some monetary aggregate series, these rethe Monetary Aggregates: Report of the Com- gression components adequately describe the mittee of Experts on Seasonal Adjustment Tech- seasonality. For others, however, including niques (see page A84, "Federal Reserve Board transaction deposits, moving seasonality remains Publications," in this BULLETIN). and is captured with a weekly time-series model. This study describes a model-based procedure The study also discusses related issues in designed for the weekly monetary aggregates (a seasonally adjusting the money supply, including monthly variant is also available). The procedure how to make preliminary estimates of the seacombines regression and time-series models and, sonal factors and when to revise them. A comby extension, regression and moving-average parison of the model-based procedure with the methods for seasonal adjustment. That part of Board's current procedure reveals that, in recent the seasonal component that is fixed or determin- years, the former has been better able to elimiistic is modeled as a regression equation, and nate the seasonal patterns that occur at the that portion of the seasonal that is changing or beginning of each quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

593 Industrial Production Released for publication August 16 the 1967 average, the total index was 3.5 percent below its high in July 1981. Industrial production increased an estimated 1.8 In market groupings, output of consumer percent in July, with widespread gains among goods rose 1.7 percent in July, reflecting wideproducts and materials and especially sharp rises spread strength. Autos were assembled at an in automobiles and steel. The July advance annual rate of 7.4 million units, sharply higher placed the index 10.2 percent above its most than the rate of 6.8 million units reached in June. recent low last November. At 148.6 percent of Production of goods for the home continued to 1967 = 100 1967 = 100 TOTAL INDEX 170 170 150 7 130 Products output FINAL PRODUCTS 190 - MATERIALS Nondurable - 190 K 170 ' \ / y - 170 Business equipment \ ^ vs 150 /// ^^^ \\\ — 150 Consumer goods \\\ ///DDDuuurrraaabbbllleee^^^ / - 130 yyy ///vvvWWW / - 130 - \/ Energy \j Defense and space 110 - 110 90 1 1 1 1 1 90 190 CONSUMER GOODS INTERMEDIATE PRODUCTS 170 Nondurable Business supplies 150 * / \ 130 V / Construction supplies N ^ ^ "N -/ 110 1969-70=100 Annual rate, millions of units 180 18 140 1977 1979 1981 1983 1977 1979 1981 1983 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: July. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin • August 1983 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1983 1983 JJJuuulllyyy 111999888222 tttooo JJJuuulllyyy June July Mar. Apr. May June July 111999888333 Major market groupings Total industrial production 146.0 148.6 1.4 1.9 1.3 1.1 1.8 7.1 Products, total 147.6 149.7 .9 2.0 1.1 1.0 1.4 5.0 Final products 146.0 148.0 .7 2.1 1.2 1.0 1.4 3.9 Consumer goods 151.4 154.0 .6 2.4 1.5 1.0 1.7 5.6 Durable 149.2 154.2 1.4 3.1 3.2 2.9 3.4 12.3 Nondurable 152.3 153.9 .3 2.0 .9 .3 1.1 3.2 Business equipment.. 149.8 151.3 .7 2.2 .7 1.2 1.0 -2.3 Defense and space ... 119.5 120.5 .8 1.0 .3 .8 .8 10.0 Intermediate products .. 153.7 156.1 1.7 2.0 .9 1.1 1.6 9.3 Construction supplies 140.2 143.4 2.6 2.5 1.6 1.2 2.3 15.6 Materials 143.6 146.8 2.0 1.5 1.5 1.3 2.2 10.4 Major industry groupings Manufacturing 146.8 149.4 1.6 1.9 1.3 1.2 1.8 8.2 Durable.... 133.0 136.1 1.9 2.2 1.5 1.5 2.3 8.1 Nondurable 166.9 168.6 1.1 1.6 1.1 1.1 1.0 8.3 Mining 113.8 115.9 -2.6 -.9 1.4 .5 1.8 -3.5 Utilities 170.3 172.8 2.3 2.1 .4 .2 1.5 3.0 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. rise; in particular, output of carpeting and furni- construction supplies was up more than 2 perture now exceeds the previous highs reached in cent in July. 1979. Output of nondurable consumer goods Materials production rose 2.2 percent in July, increased 1.1 percent in July, led by a rise in with increases widespread among durable, nonclothing production; in addition, output of elec- durable, and energy materials; gains were partictricity for residential use surged because of the ularly sharp in metals, paper, coal, and parts for unusually hot weather. Output of business equip- consumer durables. ment increased 1.0 percent, with gains mainly in In industry groupings, output of manufacturing commercial and manufacturing equipment as rose 1.8 percent, with durables up 2.3 percent well as in oil and gas well drilling. Production of and nondurables up 1.0 percent. Mining activity defense equipment continued to rise. Output of and output of utilities also advanced sharply. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

595 Statements to Congress Statement by Preston Martin, Vice Chairman, As you are aware, the Federal Reserve has Board of Governors of the Federal Reserve Sys- long been committed to regulatory improvement tem, before the Subcommittee on Administrative and the reduction of unnecessary burdens. Our Law and Governmental Relations of the Com- current regulatory review procedures are a culmittee on the Judiciary, U.S. House of Repre- mination of the steps we have taken over the last sentatives, July 14, 1983. several years to fulfill this commitment. In 1978, we established our Regulatory Improvement I am pleased to appear before this subcommittee Project, shortly before President Carter issued to present the views of the Federal Reserve Executive Order No. 12044 requiring executive Board on H.R. 2327, the Regulatory Reform Act agencies to follow certain procedures with the of 1983. My testimony will describe the current objective of reducing regulatory burdens. We regulatory review procedures of the Federal Re- wrote to President Carter and later to President serve and the types of activities at the Federal Reagan to offer our voluntary compliance as Reserve on which the legislation would have an being in the spirit of their executive orders on impact. Furthermore, I will discuss the effect of regulatory improvement. The Board's project the procedures in the bill on the Board's regula- was charged with conducting zero-based reviews tions with respect to the supervision of banking of each existing Federal Reserve regulation and organizations and review the bill's provisions ensuring that proposed regulations and amendconcerning regulatory oversight and the legisla- ments to existing rules were subject to the same tive veto as they affect the Federal Reserve's review. Thus far, we have completed or are monetary policy rules. completing review of 17 of our 27 regulations, The Board has supported and continues to including those relating to monetary policy and support the broad objectives behind efforts to consumer protection. We have eliminated 3 reguimprove the regulatory process and to enhance lations and have substantially revised 14 other public participation in regulatory proceedings. regulations. We are aware that regulatory actions that are In conducting our reviews of existing regulaintended to promote the public interest may tory provisions and of new regulatory proposals, sometimes fail to achieve their objectives and the staff of the Regulatory Improvement Project can result in adverse effects both on the affected initiates the preparation of regulatory analyses industry and on the general economy. Regula- by staff at the Reserve Banks and the Board. We tory reform addresses the need to ensure that the follow a flexible approach in these analyses and likely effects of proposed regulations are more tailor each to fit the characteristics of the particucarefully considered before they are adopted and lar regulation and the underlying statutory rethat existing regulations are reviewed periodical- quirements. For example, when the statutory ly to assess continued need and effectiveness. To charge to the Federal Reserve is broad, as in the this end, the Board supports the goals of simpli- securities credit area, we devoted a substantial fying regulations, reducing the existing regula- amount of resources to the review and explored tory burden, and avoiding unnecessary regula- many alternatives. In other cases, in which statution in the future. However, I believe that the tory provisions are very specific and establish goals and objectives of regulatory reform would the basic regulatory framework, as in the case of be achieved more efficiently by careful analysis Truth in Lending and the Monetary Control Act, of individual agency functions rather than by our analyses addressed more technical aspects imposition of an additional layer of administra- and focused on designing methods to minimize tive requirements as envisioned by H.R. 2327. the burden and the difficulties of compliance. As Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin • August 1983 a result of our efforts, considerable progress has regulatory efforts and the establishment of probeen made in reducing the burden of compliance grams for the periodic review of existing regulain several areas. tions. Agencies must attempt to ensure that Because we have, thus far, been able to use compliance costs, paperwork, and other burdens such a flexible approach in our regulatory analy- on the public are minimized. Additionally, the ses, we believe that they have generally been act requires the federal agencies to submit annual more useful. The regulatory analyses have pro- reports to the Congress on their regulatory simvided Board members information in a system- plification efforts. atic fashion, helped focus attention on critical For example, through its Annual Report for issues, clarified areas of uncertainty and infor- 1982, the Board reported to the Congress that it mational deficiencies and, thus, helped the had made significant strides in simplifying com- Board to respond to issues arising from changes pliance across the spectrum of its regulations. in the financial markets as well as public con- The Board removed barriers to entry into various cerns as to information, disclosure, and financial areas by permitting Edge corporations in the structure. United States to offer certain investment adviso- Although the Board has found regulatory anal- ry and management services and bank holding yses beneficial, I have strong reservations about companies to offer expanded data processing the additional benefits to be gained from provi- services, securities discount brokerage, and cersions, such as those contained in H.R. 2327, that tain consulting services. require agencies to conduct specific cost-benefit An example of the Board's regulatory simplifianalyses based on estimated economic costs. cation efforts over that time period in the con- The Federal Reserve has conducted such studies sumer area is the electronic funds transfer (EFT) in the past. Our most recent efforts concerned a rules. The Board adopted amendments to this review of three regulations in the consumer regulation to grant relief to providers of EFT credit area, conducted in 1981-82. We found that services by eliminating duplicate periodic statea majority of financial institutions did not have ments for certain intrainstitutional transfers, exdata on their compliance costs readily available empting small institutions from provisions reguon a consistent basis. In addition, institutions lating preauthorized electronic transfers, and found it very difficult to identify the likely costs lifting certain burdens from institutions that are of prospective regulations; it is only as institu- members of debit-credit card networks. tions implement their compliance programs that As an additional step in reducing regulatory they discover all the implications of the regula- burden, the Federal Reserve has implemented tion. This is not to say that cost-benefit analyses the provisions of the Regulatory Flexibility Act are not useful on a conceptual level, because adopted in 1980. That act requires all federal analysts attempt to identify all areas in which the agencies to consider the impact of regulations on costs may be incurred and try to articulate clear- small entities and to conduct regulatory analyses ly the likely benefits. But one should be aware and periodic reviews of regulations. As examples that there are usually indirect and more subtle of our efforts under this act over the past year, costs associated with regulation with respect to the Board has reduced reporting for reserve reduced freedom of choice for the regulated and requirement purposes for small depository instithe consuming public. This suggests to me that tutions and has exempted institutions with assets specific statutory requirements for cost-benefit of $25 million or less from the requirements of analyses may impose unwarranted burdens and Regulation E governing participation in preauthcosts for consumers and the industry without orized credit and debit programs of the federal yielding sufficient information to identify clearly and private sectors. the best regulatory choice. The Regulatory Flexibility and Regulatory The Federal Reserve supported the enactment Simplification Acts thus represent statutory reof the Financial Regulation Simplification Act of quirements under which the Federal Reserve and 1980, which prescribes regulatory improvement the other financial regulatory agencies now operprocedures for the federal financial regulatory ate that parallel those proposed for regulatory agencies. This act mandates the coordination of review procedures as part of the current bill for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 597 regulatory reform. I respectfully suggest that a raising the fundamental question of the approprifurther review of the success of regulatory re- ate division of responsibilities for the execution form under the existing statutory requirements of monetary policy. This concern would still would be warranted before adopting a proposal arise even if the oversight provision were advithat would add additional administrative require- sory. ments. The proposed procedures may not con- The issue of the legislative veto appears to tribute significantly to the procedures the agen- have been rendered moot by a recent decision by cies currently employ. the Supreme Court.1 However, in the event that H.R. 2327 establishes complex procedures for a legislative veto is fashioned that passes constiadopting rules, authorizes the President to speci- tutional muster, the Board would continue to fy certain proposals as "major rules," and pro- caution that such an authority could seriously vides the Office of Management and Budget with hamper the speed and flexibility that are needed the authority to establish additional procedures for the effective conduct of monetary policy. The for the implementation of "major rules." We are conduct of monetary policy by the Federal Repleased that section 621(a)(5)(B) recognizes the serve already is subject to continuing close scruunique role monetary policy plays by specifically tiny by the Congress. In this regard, the Board exempting from the revised procedures rules reports twice each year before the Banking Com- "relating to monetary policy proposed or pro- mittees concerning the System's objectives for mulgated by the Board." monetary policy and appears before committees The proper conduct of monetary policy re- on numerous occasions to discuss monetary poliquires a high degree of discretion and a minimum cy goals. Accordingly, we urge that the Federal of complex procedural rules that could delay and Reserve's monetary policy functions continue to frustrate timely and effective action responsive be excluded from the scope of H.R. 2327. to the changing needs of the economy. The Many of the same policy considerations relat- Senate previously recognized the need for flexi- ing to flexibility of action and speed of response bility when it passed S. 1080 last year. The Board in the area of monetary policy apply to regulacontinues to believe that an exemption for mone- tions concerning the safety and soundness of tary policy actions in the Regulatory Reform Act banks and thrift institutions. Therefore, we urge is essential for the effective implementation of the Congress to consider applying the same monetary policy. exemptions covering oversight and veto to these It is important to note the types of monetary rules. There is an inherent link between the policy actions that have been exempted from the central bank's responsibility for the stability of provisions of the bill. Monetary policy is carried the financial system and the conduct of monetary out, in part, under rules made in connection with policy. The Board is concerned that H.R. 2327 as the operation of the Federal Reserve's discount it is currently structured would seriously hamper window, through which the Federal Reserve the ability of the agencies to react promptly and performs its function as lender of last resort, and effectively to individual problem situations. through which loans are made to banks and thrift Moreover, the need for flexibility in the regulainstitutions for short-term, seasonal, and extend- tion of financial institutions is particularly acute ed borrowing needs. Another example of mone- at the present time when those institutions are tary policy actions involves rules such as those engaged in historically unprecedented innovative establishing reserve requirements, a basic tool activities in response to the rapidly evolving for influencing the level and growth of the money competitive environment. supply and the availability of credit. Lastly, The procedures prescribed by the bill could monetary policy actions include rules relating to undermine the ability of the financial institution margin credit and interest on deposits. The provisions for Executive oversight would 1. In Immigration and Naturalization Service v. Jagdish compound the problems of procedural delays in Rai Chadha (51 U.S.L.W. 4907 (U.S. June 21, 1983), affirmthe taking and implementing of decisions that ing 634 F. 2d 408 (9th Cir. 1980)), the Court held that a legislative veto violated the principle of separation of powers must be carried out immediately to have their of the executive and legislative branch and was unconstituproper market impact, while, at the same time tional. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin • August 1983 regulators to maintain an appropriate foundation the unusual demands this placed on the Federal of safety and soundness upon which the financial Savings and Loan Insurance Corporation and the system in the United States can continue to Federal Deposit Insurance Corporation. evolve and develop. For these reasons, we urge Some examples of rules falling within the adoption of the provision that excludes rules of viability or stability category would be those the agencies relating to depository institution covering such subjects as required or permissible viability and stability or safety and soundness levels of liquid assets, borrowings, reserves, or from designation as major rules. (As a technical net worth; appropriate accounting, appraisal, or point, we recommend that the bill be clarified to underwriting practices; and prudent involvement assure that the exemption also applies to the in the futures or forwards markets. The thrust of financial activities of depository institution hold- such rulemaking is toward observance by a fiing companies.) nancial institution management of safe and sound The existing exemption, which would be al- practices that do not involve abnormal or undue most identical to one contained in S. 1080, pro- risk of loss, or that do not tend to undermine vides that a rule will not be regarded as a major public trust and confidence in such institutions. rule, subject to the new procedural require- Rules that would be covered under asset powers ments, if it relates to the viability or stability of would involve matters such as implementation of federally insured depository institutions. This statutory authority to change lending limits or to provision is intended to give the federal financial engage in new investment activities. Rules relatregulatory agencies flexibility in determining ing to the various rates of interest payable on what constitutes a rule subject to the additional deposits would also be covered, although it procedural requirements for major rules of the should be recognized that many of these would act. It may be that this provision should be expire when the Depository Institutions Deregubroadened further in that it does not exempt such lation Committee completes its labors and goes rules from Executive oversight. Specifically, the out of existence by March 31, 1986. President could still determine that such a rule is The current financial environment, charactera "major rule," thus subjecting it to additional ized by persistent uncertainties about price starequirements that could adversely affect the abil- bility, constantly changing technology, and inity of the agencies to react promptly and flexibly. creased competition from largely nonregulated The authority to implement rules related to the industries, demands that regulators continue to viability or safety and soundness of depository be authorized to provide regulated institutions institutions, including bank holding companies, with an appropriate regulatory framework, withhas been entrusted to the federal financial regula- in prescribed statutory limits, on an expeditious tory agencies to assure that public confidence in basis. This will ensure that the deregulation and the nation's depository institutions is upheld. expansion of powers that is currently taking The presence of public policy vehicles ensuring place in the financial industry is not thwarted by the well-being of these institutions such as feder- rigid procedural burdens. al agency supervision and examination, federal While the limited exemption relating to rules deposit insurance, and Federal Reserve "dis- concerning viability and stability would cover a count window" facilities reflects the view of the significant range of activities, other regulations Congress as to the importance of financial stabil- of the agencies would continue to be covered by ity. The loss of public confidence in depository the requirements of the act. Most prominent institutions can have wide-ranging and adverse would be regulations issued by the financial consequences, as has been demonstrated in the regulators under such laws as the Home Mortearly 1930s and before. This potential requires gage Disclosure Act, the Truth in Lending Act, the capability of prompt and effective corrective the Fair Housing Act, and the Community Reinactions on the part of regulators. In this regard, vestment Act. These regulations are among the need for financial regulators to have the those that do not involve financial viability or ability to act quickly was underlined again over affect safety and soundness. We believe it approthe past two years by the serious problems priate to subject those types of regulations to the encountered by the nation's thrift industry, and requirements of the act, particularly since regu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 599 lated institutions believe them to be the most react promptly and effectively during this period burdensome with which to comply. of rapid change in our financial system. Given In closing, I believe the Board has demonstrat- the specific regulatory reform measures enacted ed its support for efforts to improve the regula- and implemented by the federal financial regulatory process. It is our judgment that the objec- tory agencies within the past three years, and our tives of regulatory simplification and reform experience with those provisions, the Board bewould not be best achieved by imposition of an lieves that the existing review procedures are additional layer of administrative requirements. serving the public well, and that further require- We continue to be concerned with any new ments applicable to these agencies are not needrequirements that could reduce our ability to ed at this time. • Statement by Nancy H. Teeters, Member, Board attracted to other unique characteristics, such as of Governors of the Federal Reserve System, the lack of a long-term obligation and freedom before the Subcommittee on Consumer Affairs of from maintenance responsibilities. the Committee on Banking, Housing, and Urban When the Congress simplified the credit provi- Affairs, U.S. Senate, July 19, 1983. sions of the Truth in Lending Act in 1980, no major statutory changes were made to the Con- I am pleased to appear before this subcommittee sumer Leasing Act, although the leasing provion behalf of the Federal Reserve Board to dis- sions are part of the Truth in Lending Act. When cuss S. 1152, a bill incorporating the Board's the Board revised its regulations implementing proposal to simplify the Consumer Leasing Act. the Truth in Lending Act in an effort at simplifi- We believe that simplification of the act along the cation, it decided not to change the leasing rules, lines of the proposal could both reduce the with the prospect that the Congress might conburden of compliance and improve the consumer sider major statutory revisions. benefits of the legislation. Representatives of the auto leasing industry, The Consumer Leasing Act, which was en- members of the Board's Consumer Advisory acted in 1976 following recommendations by the Council, consumer representatives, and the ap- Board, is primarily designed to ensure adequate pliance rental industry have argued that the act disclosure of the terms of consumer leases of should be amended. Since simplification of Truth personal property. It followed enactment of the in Lending, the Board has studied the possibili- Truth in Lending Act, and reflected the subse- ties for similar amendments to the Consumer quent development of leasing as an alternative to Leasing Act. Our study involved a large number the purchase of consumer goods on credit. The of interested parties. Meetings were held with act covers leases of personal property for more business representatives to learn about developthan four months when the property is used ments in the industry and to explore the need for primarily for personal, family, or household pur- statutory changes. We also held meetings with poses. Automobiles are a common type of leased representatives of consumer groups to solicit property, and we estimate that about 700,000 their views on areas of possible abuse and how automobiles are covered by leases subject to the best to protect consumer rights, while at the act. The act also covers leases of home furnish- same time reducing the burdens on lessors. We ings, though it does not apply to month-to-month sought the views of federal and state agencies on rentals of televisions and other home appliances. their problems with the present act and their The act also does not cover other types of short- ideas about how to improve it. This work conterm leasing, such as vacation rental of cars. vinced the Board that the act could be improved According to industry experts, consumers are to make it more effective and less costly. attracted to leases and rentals because of the This is a particularly appropriate time to conabsence of a downpayment and because monthly sider revising the act. Although the number of payments are often lower than those in compara- transactions now subject to the act is comparable credit transactions. Consumers may also be tively small, there are several indications that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin • August 1983 industry—particularly automobile leasing—may • Using cross-references to the contract for the be poised for significant growth. First, the yields less important or more detailed terms. from lease operations were enhanced by the • Using plain English both in the legislation Economic Recovery Tax Act of 1981. We under- itself and in suggested disclosures. stand that many potential suppliers of consumer In applying these principles to the Consumer leases, primarily financial institutions, are pre- Leasing Act, the bill substantially reduces both pared to enter the market quickly if the anticipat- the number and complexity of the disclosures. ed demand materializes. Second, firms already in For example, under the current statute there may the market have recently attempted to stimulate be as many as 21 disclosures; in the bill this demand by offering automobile dealers new, number is reduced to 13. attractive leasing programs. Such programs are Although the bill would reduce the burden of resulting in greater efforts by dealers to encour- compliance on the lessor in many ways, it exage consumers to use leasing. Finally, given the pands the coverage to rental-purchase agreehigh purchase price of automobiles, dealers are ments. Rental-purchase agreements, sometimes promoting the absence of a downpayment and referred to as rent-to-own agreements or termithe lower monthly payments in leases relative to nable leases, generally involve televisions and purchases. These characteristics enable a con- other home appliances. Under a rental-purchase sumer to acquire a more expensive automobile agreement, the consumer rents the property for a for a given monthly budget. term of one week or one month. The rental is In general, the bill builds on the principles automatically renewed with each subsequent used in the simplification of Truth in Lending and payment, and although there is no obligation to our experience with that effort. Both the original continue payments, the consumer may become Truth in Lending and Consumer Leasing Acts the owner of the property. seemed to assume that more disclosure was For many years consumer groups have comnecessarily better disclosure. In both cases this plained of abuses by some members of this philosophy led to long and complicated disclo- industry. Consumer representatives, for examsure forms and formidable regulations. Over the ple, have stated that some companies emphasize years, a general consensus has developed that the ownership option without clearly disclosing such a disclosure philosophy is probably unwise. the total of payments needed to acquire title, Highly detailed disclosure schemes may be self- which may be several times the retail price of the defeating by obscuring the most important infor- goods. In addition, a number of lawsuits have mation in the amount of detail provided. Further- raised the issue of whether property rented to the more, compliance with complicated regulations consumer was new or used. The bill attempts to imposes substantial costs, which are ultimately address these concerns by emphasizing informaborne by consumers through increased prices or tion about how much must be paid before ownerreduced services. ship is acquired, the lack of equity in the proper- In the proposed consumer leasing revisions as ty until all payments are made, and whether the in the new Truth in Lending rules, the Board has property is new or used. tried to emphasize disclosure of the essential The rental-purchase industry, while contendinformation in a straightforward manner. Our ing that it fills a legitimate need in the marketobjective has been to reduce the burden of place, is also seeking coverage under the Concompliance on industry, and at the same time to sumer Leasing Act. The industry believes that assist consumers by focusing on material disclo- federal legislation will ensure uniform treatment sures. In order to meet these objectives, the and avoid having these agreements characterized simplification efforts have involved the follow- as "sales" under state law—a process that the ing: industry believes subjects them to inappropriate • Reducing the number of disclosures. regulation. Thus, we have the unusual situation • Reducing the complexity and redundancy of in which segments of both consumer and busidisclosures. ness groups support expanded coverage by fed- • Segregating the disclosures from the other eral law. contract provisions to highlight them. There are several points that I would like to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 601 emphasize about our proposal. First, although interpret new requirements and prepare these the Board has done a considerable amount of forms. We have attempted to minimize these work developing this simplification proposal, we costs by simplifying the statutory language and have submitted it while aware of the fact that it assisting compliance by showing what the disclomay not be the optimal solution in every respect. sure forms might look like. We hope that the one- We fully anticipate that the many groups inter- time conversion costs will be offset by benefits ested in this law will participate actively in from the simplified rules in the future, but this congressional consideration of the bill and that aspect cannot be ignored in any consideration of various modifications may occur during this the value of revising the act. process. Finally, the proper relationship between state Second, in the full spirit of regulatory reform, and federal laws is always a concern in any we have not limited our work to improving the federal consumer protection legislation. This bill substance of the law. We have also attempted to reflects a narrow preemption of state law, paralimprove the existing structure and language of lel to the approach of the Truth in Lending Act. the law, even when we propose no change in This is an area that the Congress will have to substance. For example, the bill consolidates all consider carefully. Persuasive arguments can be of the leasing provisions, now found throughout made that a broad preemptive standard is desirthe Truth in Lending Act, under a separate title. able, given the interstate operations of the indus- In addition, we have tried to write in plain try and the additional costs associated with com- English, eliminating unnecessary "legalese" plying with patchwork state regulation. On the from the existing statute whenever possible. This other hand, a strong argument can be made that approach, of course, presents some risk that the citizens of each state have a legitimate intereditorial changes may suggest a change in mean- est in determining the level of protection they ing where none was intended. We believe, how- deem appropriate for their locality. In the area of ever, that the benefits of improved readability consumer credit law, the Board has generally outweigh any such potential misunderstanding. been cautious about suggesting broad federal Third, we have learned from our experience preemption, and the bill reflects this view. with implementing the Truth in Lending Act that In conclusion, the Board believes it is time to costs are associated with any "simplification," build on the Truth in Lending experience and both for those who are regulated and for the consider simplifying the Consumer Leasing Act. regulatory agency. Initially, revised regulations We are pleased that the Board's draft can serve must be written—and the rulewriting process as a starting place for this consideration. The involves substantial public participation, which specific provisions of this bill may be changed itself involves costs to the industry. When disclo- and improved as additional information and the sure changes are required, costs must be in- views of other interested parties are considered curred for retraining employees, printing new in the legislative process. We will be pleased to disclosure forms, and retaining legal counsel to assist the Congress during this process. • Statement by Paul A. Volcker, Chairman, Board Monetary Policy Report to the Congress preof Governors of the Federal Reserve System, pared in accordance with the Humphrey-Hawbefore the Committee on Banking, Finance and kins Act (pages 579-90 of this BULLETIN). This Urban Affairs, U.S. House of Representatives, morning, I will highlight or expand on some July 20, 1983. aspects of that report and deal with certain further questions raised by your Chairman. I welcome this opportunity to discuss Federal We meet at a time when economic activity is Reserve monetary policy with the Banking Com- plainly advancing at a rate of speed significantly mittee in the context of current and prospective faster than we, the administration, the Congress, economic conditions and other policies at home and most other observers thought likely at the and abroad. You have before you the midyear start of the year. Over the past six or seven Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin • August 1983 months of expansion, output has risen about as and before turning to monetary policy in detail, I fast as in the average postwar recovery, more want to touch again upon some crucially importhan 1 million more people are employed, and the tant aspects of the environment in which moneunemployment rate has dropped nearly a per- tary policy must be conducted. centage point from its peak. The very sizable gain in the gross national product during the second quarter in substantial THE BUDGETARY SITUATION part reflected a cessation of inventory liquidation—and perhaps small accumulations—by bus- I am aware of the enormous effort in the Coniness. That is not unusual in the early stages of gress over recent months to shape a responsible expansion, and does not necessarily suggest con- budget resolution—indeed to preserve an orderly tinuing gains at the same rate of speed. But it is budgetary process. But the concrete results of also evident that domestic final sales and in- that effort to date appear ambiguous at best, comes are now increasing fairly rapidly, that the measured against the challenge of reducing the midyear tax cut has released further purchasing growing structural deficits embedded in the curpower, and that consumer and business confi- rent budgetary outlook. dence has improved. Consequently, strong for- The current fiscal year is likely to see a budget ward momentum has carried into the third quar- deficit—not counting Treasury or other market ter, and potentially beyond. financing of off-budget credit programs—of some The expansion so far has been accompanied by $200 billion, or about 6V percent of the GNP. 2 remarkably good price performance. Finished Forecasts of future years necessarily entail judgproducer prices were essentially unchanged over ments about congressional action yet to be taken the first half of 1983, and consumer prices were as well as economic factors. Should the Congress up at a rate of only 3 percent through May and by fail to implement the expenditure restraints as about 3Vi percent over the last 12 months. Per- well as the revenue increases contemplated in haps more significant for the future, the rate of the recent Budget Resolution—and doubt has nominal wage increase—at about a 4 percent been expressed on that point within the Congress annual rate—is now at its lowest level since the itself—deficits appear likely to remain close to mid-1960s, while average real wages, as in 1982, $200 billion for several years, even taking acare rising. That pattern has been assisted by count of economic growth at the higher rates sizable productivity gains. now projected. The hard fact remains that, as In all these respects, we are clearly "doing economic growth generates income and revenues better." Yet, even as the economy has expanded to reduce the "cyclical" element in the deficit, and the inflation record has remained good, the "underlying" or "structural" position of the widespread forebodings remain evident for the budget will deteriorate without greater effort to future. Those concerns are understandable and reduce spending or increase revenues from that justified so long as some major policy issues— incorporated in existing programs. We would be issues that I emphasized in my testimony to you left with the prospect that federal financing earlier in the year—remain unresolved. Indeed, would absorb through and beyond the mid-1980s the very speed and vigor of the recovery in its a portion of our savings potential without preceearly stages has increased the urgency of facing dent during a period of economic growth. up to those problems. That outlook raises a fundamental question I have repeatedly expressed the view that we about the consistency of the budget outlook with have come much of the way toward setting the the kind of economy we want. That is particularstage for a long-sustained period of recovery, ly the case with respect to such heavy users of characterized by greater growth in productivity credit as housing and business investment. To and real incomes and by much greater price put the issue pointedly, the government will be stability. Responsible and prudent monetary pol- financed, but others will be squeezed out in the icies must be one important element in making process. that vision a reality. But it would be an illusion to While that threat has been widely recognized, think that monetary policy alone can do the job, there has also been a comfortable assumption Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 603 that the problem would not become urgent until of much of the developing world—centered in, 1985 or beyond. That might be true in the context but not confined to, Latin America—remain a of a rather slowly growing economy. But the clear threat to financial stability. In the period speed of the current economic advance certainly since we last discussed these issues, the strains brings the day of reckoning in financial markets have been successfully contained, but by no earlier. In the second quarter, total nonfederal means resolved. To be sure, there are clear signs credit demands were already increasing substan- of progress with necessary economic adjustment tially, even though business demands were es- in some instances—notably in Mexico. Within sentially unchanged at a relatively low level. the past week, Brazil—which, along with Mexi- Potential credit market pressures have been ame- co, is the largest debtor—has taken forceful and liorated by a growing inflow of foreign capital, encouraging domestic actions that should probut a net capital inflow can be maintained only at vide a base for renewed support of the Internathe expense of a deep trade deficit. Banks have tional Monetary Fund and for added private been sizable buyers of government securities financing. But "normalcy" has plainly not reduring the early stages of recovery, while busi- turned. ness demands for credit have been relatively Confidence and market-oriented financing patslack. But there has also been some tendency for terns cannot be fully restored without sustained overall measures of money, liquidity, and credit growth among the industrialized countries, so to rise recently at rates that, if long sustained, that the debtors can earn their way with greater would be inconsistent with continuing or even exports. Lower interest rates will be important consolidating progress toward price stability. as well. But that process will take time. Mean- All of this, to my mind, points up the urgency while, failure to provide the IMF—which is the of further action to reduce the budgetary deficit international institution at the center of the adto make room for the credit needed to support justment and financing process—with adequate growth in the private economy. Left unattended, resources to do its job would deal a devastating the situation remains the most important single blow to the extraordinary cooperative effort that hazard to the sustained and balanced recovery has been marshaled to manage the situation, with we want. potentially severe consequences for the U.S. financial system as well as the developing world. Early action by the House on the administra- THE INTERNATIONAL DIMENSION tion's request in this matter is thus one key element in a program to sustain recovery. The pressures on our capacity to finance both rising private credit demands and a huge budgetary deficit have, as I just noted, been one factor WAGE-PRICE TRENDS inducing a growing net capital inflow. One shortterm consequence is lower domestic interest I touched earlier on the relatively favorable rates than might otherwise be necessary and wage-price productivity trends of the past year. maintenance of extraordinary strength of the We are now approaching a new test—whether dollar at a time of rising trade and current those trends can be extended into and through a account deficits. But the sustainability of those period of recovery. Today, orders are rising, trends can be questioned. The picture of the businesses are hiring, layoffs are sharply diminlargest and strongest economy in the world rely- ished, and profits are improving. After the inflaing, in a capital-short world, on large inflows of tionary experience of the 1970s, the temptation funds to finance, directly or indirectly, internal could arise to revert to what some might consider budget deficits is not an inviting one for the "normal" behavior—to anticipate inflation, to future. The implication would be a persistently return to wage increases characteristic of the weak trade position, instability in the interna- earlier decade, to fatten profit margins as fast as tional financial system and exchange rates, and possible by raising prices in a stronger market lack of balance in our recovery. rather than by relying on volume increases. But More immediately, the pressing debt problems pressed collectively, the irony would be that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin • August 1983 such behavior, by inciting doubts about the infla- gates. In particular, the behavior of Ml in relationary outlook and affecting interest rates, tion to economic activity and the nominal GNP would impair prospects for continued growth in has raised questions about whether the patterns real wages, profits, and employment. in velocity established earlier in the postwar We and other industrialized countries have period might be changing, cyclically or on a trend had little success in dealing with that threat basis. For that reason, less emphasis has been through so-called incomes policies. But govern- placed on that aggregate in policy implementament policy can make a powerful contribution tion. For a time, the enthusiastic reception of the toward moderation through two avenues: first, public to—and aggressive marketing by deposiby making evident in its fiscal and monetary tory institutions of—the new ceiling-free money management that inflationary pressures will con- market deposit accounts plainly affected growth tinue to be contained; and second, by insisting in M2. Consequently, the target base for 1983 for upon open, competitive markets. that aggregate was set at the February and March In that respect, open markets internationally average, rather than the fourth quarter of 1982, serve our continuing basic interest in spurring to avoid most of those distortions. More broadly, efficiency and competition. Virtually every coun- given the questions about interpreting some of try has made compromises with protectionism the monetary and credit aggregates, judgments during the period of recession. With growth as to the appropriate degree of pressure on bank under way, it is time not only to halt but to reserve positions have been conditioned by reverse that trend to help sustain expansion and available evidence about trends in economic and the gains against inflation. financial conditions, prices (including sensitive Moreover, as the economy grows stronger, I commodity prices), exchange rates, and other hope we will seriously turn more of our attention factors. to the many purely domestic inhibitions to com- Through most of the first half of the year, as petition and to reducing the artificial supports the economy picked up speed, the broader monefor prices and costs in some industries. All too tary and credit aggregates moved consistently often, these artificial supports work at cross within the ranges set in February. At the same purposes to the needs of the economy as a time, trends in overall price indexes were relawhole. tively favorable, and sensitive commodity prices, after an increase from cyclically depressed levels early in the year, appeared to be MONETARY POLICY IN 1983 AND BEYOND leveling off in the second quarter. The continuing exceptional strength of the dollar in foreign ex- This setting of gratifying immediate progress, yet change markets and the international financial evident looming threats, has provided the envi- strains did not point in the direction of restraint. ronment for decisions with respect to monetary In all these circumstances, a broadly accommopolicy. As you are well aware, interest rates dative approach with respect to bank reserves dropped sharply during the second half of 1982 as appeared appropriate, despite much higher the recession continued, and, with inflation sub- growth in Ml—alone among the targeted aggresiding, reserve pressures on the banking system gates—than anticipated. were relaxed. Growth in money and credit has In the latter part of the second quarter, against been quite plainly adequate to support growth in the background of growing momentum in ecoeconomic activity—indeed more growth in the nomic activity, monetary and credit growth first half of 1983 than had been generally antici- showed some tendency to increase more rapidly, pated. and Ml growth remained particularly high— During much of the period after mid-1982, higher, if sustained, than seemed consistent with institutional change, as well as adjustments by long-term progress against inflation and susholders of liquid assets to the sharp drop in tained orderly recovery. In these circumstances, interest rates, to declining inflation, and to the the Federal Open Market Committee, beginning uncertainties of the recession, appeared to be in late May, has taken a slightly less accommodaaffecting one or another of the monetary aggre- tive posture toward the provision of bank re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 605 serves through open market operations, leading into M2 as a result of the introduction of money to some increase in borrowings at the discount market deposit accounts, and to a more limited window. Whether viewed from a domestic or extent into Super NOW (negotiable order of international perspective, limited, timely, and withdrawal) accounts, has abated. We assume potentially reversible measures now, when the that these new accounts and the further deregulaeconomy is expanding strongly, are clearly pref- tion of time deposit interest rates scheduled for erable to the risks of permitting a situation to October 1 will have little impact on growth develop that would require much more abrupt trends in the period ahead. Given the reasonably and forceful action later to deal with new infla- favorable trend of prices, the ranges should be tionary pressures and a long-sustained pattern of consistent with more real growth than was excessive monetary and credit growth. thought probable at the start of the year. These steps have been accompanied by in- The Committee also decided to continue the creases, ranging from 3A to 1 percent or more, in associated ranges for growth in total domestic both long- and short-term market interest rates. nonfinancial credit of 8V2 to 11V2 percent. As you Apart from any monetary policy actions, these know, 1983 is the first time the Committee has limited changes—particularly in the intermediate set a range for a broad credit aggregate, and it is and longer-term areas of the market—appear not given the same weight as the broader monealso to have been influenced by larger private tary aggregates, at least while we gain experience and government credit demands currently, as with it. We are aware that, consistent with the well as by expectations generated by stronger established range, growth in credit during 1983 economic and monetary growth and the budget- could exceed nominal GNP, although the longary deficit. term trend is for practically no change in the ratio Over the more distant future, balanced and of credit to income (that is, "credit velocity" is sustained economic growth—with strong hous- relatively flat). Somewhat faster growth in credit ing and business investment—would appear is consistent with experience so far this year, and more likely to require lower rather than higher may be related to the relatively rapid expansion interest rates. That outcome, however, can be in federal debt. assured only if the progress against inflation can For 1984, the Committee tentatively looks be consolidated and extended. In considering all toward a reduction of V2 percent in each of those these factors, the Federal Open Market Commit- ranges for M2, M3, and nonfinancial domestic tee basically concluded that the prospects for credit. That small reduction appears appropriate sustained growth and for lower interest rates and desirable, taking account of the need to over time would be enhanced, rather than dimin- sustain real growth while containing inflation. ished, by modest and timely action to restrain Those targets appear fully consistent, in the light excessive growth in money and liquidity, given of experience, with the economic projections of its inflationary potential. But I must emphasize the Committee (as well as those of the adminisagain that the best assurance we could have that tration and those underlying the Budget Resolumonetary policy can, in fact, do its part by tion). avoiding excessive monetary growth within a The targets are, of course, subject to review framework of a growing economy and reduced around year-end. One question that arises is interest rates over time lies not in the tools of whether the somewhat more rapid growth in central banking alone, but in timely fiscal action. credit than nominal GNP will, or should desir- Looking ahead, the Committee decided that ably, continue, consistent with progress toward the growth ranges established early in the year price stability and toward a more conservative for M2 and M3 during 1983 (7 to 10 percent and pattern of private finance than characteristic of 6V2 to 9Vz percent respectively) are still appropri- the years of inflation. Again, the pressures on ate. The most recent data, while showing some- aggregate debt expansion stemming from the what larger increases in June, are still within budgetary situation are a source of concern. (M2), or about at the upper end (M3), of those Decisions concerning appropriate targets for ranges. Ml were more difficult. As discussed further in As anticipated, the massive shifting of funds an appendix to this statement, the velocity of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 Federal Reserve Bulletin • August 1983 Ml, whether measured as a contemporaneous or range could be appropriate. As this implies, Ml lagged relationship, has varied significantly from will be monitored closely but will not be given usual cyclical patterns, dropping more sharply full weight until a closer judgment can be made and longer during the recession and failing to about its velocity characteristics for the future. "snap back" as quickly.1 While a number of We are, of course, aware that proposals to pay more temporary factors may have contributed, a interest on demand deposits could, if enacted, significant part of the reason appears to be influence velocity trends further over time. related to the fact that a major portion of the These targets are designed to be consistent narrow "money supply" now pays interest, and with continuing growth in economic activity and the "spread" between the return available to reduced unemployment in a framework of susindividuals from holding Ml "money" and mar- tained progress against inflation—and indeed are ket rates has narrowed substantially, more than designed, insofar as monetary policy can, to the decline in market rates itself implies. Put contribute to those goals. The targets, by themanother way, NOW accounts, in which the selves, do not necessarily imply either further growth has been most rapid, are not only trans- interest rate pressures or the reverse in the action balances, but now have a "savings" or period ahead—much will depend on other fac- "liquid asset" component. For a time at least, tors. In particular, progress in the budget and uncertainty about the financial and economic continued success in dealing with inflation outlook, and less fear about inflation, may also should be powerful factors reducing the historihave bolstered the desire to hold money. cally high level of interest rates over time, to the Growth in Ml—in running well above our benefit of our private economy and the world at targets for nine months—has not, however, been large. confined to NOW accounts alone. Moreover, there are signs that the period of decline in velocity may be ending. In looking ahead, with "TARGETING" OTHER ECONOMIC the economy expanding and with ample time for VARIABLES individuals and others to have adjusted to the rapid decline in interest rates last year, we must The chairman of the committee has asked for my be alert to the possibility of a rebound in velocity views on the Federal Reserve's setting and analong usual cyclical patterns, even though the nouncing "objectives" for a variety of economic longer-term trend may be changing. variables. As you know, the Federal Open Mar- In monitoring Ml, the Committee felt that an ket Committee (FOMC) already reports its "proappropriate approach would be to assess future jections" or "forecasts" for GNP, inflation, and growth from a base of the second quarter of 1983, unemployment. These projections are included looking toward growth close to, or below, nomiwith the materials I am reporting to the commitnal GNP. Specifically, the range was set at 5 to 9 tee today, as they have been at earlier hearings. I percent for the remainder of this year, and at 1 believe the practice of reporting the full range percent lower—4 to 8 percent—for 1984. Thus, and the "central tendency" of FOMC members' the Committee, in the light of recent developexpectations about the economy may be useful in ments, looks toward substantially slower, but reflecting the general direction of our thinking, as not a reversal of, Ml growth in the future. well as suggesting the range of possible outcomes Velocity is expected to increase, although not for economic performance in the 12 or 18 months necessarily to the extent common in earlier reahead, given our monetary policy decisions and coveries. fiscal and other developments over those peri- The range specified is relatively wide, but ods. depending on further evidence with respect to There is a sense in which those projections velocity, either the upper or lower portion of the reflect a view as to what outcome should be both feasible and acceptable—given other policies and factors in the economy; otherwise monetary poli- 1. The attachments to this statement are available on re- cy targets would presumably be changed. But I quest from Publications Services, Board of Governors of the would point out that, like any other forecast, Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 607 they are imperfect, and actual experience has relied upon to achieve that objective whatever sometimes been outside the forecast ranges. else happens with respect to fiscal policy or Moreover, I believe there are strong reasons otherwise. Such an impression would be no why it would be unwise to cite "objectives" for service to the Congress or to the public at large; nominal or real GNP rather than "projections" at worst, it would work against the hard choices or "assumptions" in these reports. necessary on the budget and other matters, and The surface appeal of such a proposal is under- ultimately undermine confidence in monetary standable. If a chosen path for GNP over a policy itself. period of 6 to 18 months could be achieved by Some of the difficulties could, in principle, be monetary policy, specific objectives might ap- met by specifying numerical "objectives" over a pear to assist in debating and setting the appro- longer period of time. But, experience strongly priate course for monetary policy. suggests that the focus will inevitably, in a Unfortunately, the premise of that approach is charged political atmosphere, turn to the short not valid—certainly not in the relatively short run. The ability of the monetary authorities to run. The Federal Reserve alone cannot achieve take a considered longer view—which, after all, within close limits a particular GNP objective— is a major part of the justification for a central real or nominal—it or anyone else would choose. bank insulated from partisan and passing politi- The fact of the matter is that monetary policy is cal pressures—would be threatened. Indeed, in not the only force determining aggregate produc- the end, the pressures might be intense to set the tion and income, Large swings in the spending short-run "objectives" directly in the political attitudes and behavior of businesses and con- process, with some doubt that that result would sumers can affect overall income levels. Fiscal give appropriate weight to the longer-run consepolicy plays an important role in determining quences of current policy decisions. economic activity. Within the last decade, we I would remind you that we have paid a high also have seen the effects of supply-side shocks, price for permitting inflation to accelerate and such as from oil-price increases, on aggregate become embedded in our thinking and behavior, levels of activity and prices. In the past six partly because we often thought we could "buy" months, even without such shocks, the economy a little more growth at the expense of a little has deviated substantially from most forecasts, inflation. The consequences only became apparand from what might have been set as an objec- ent over time, and we do not want to repeat that tive for the year. mistake. The response might well be "so what"—it's Put another way, decisions on monetary policy still better to have something to "shoot at." But should take account of a variety of incoming encouraging manipulation of the tools of mone- information on GNP or its components, and give tary policy to achieve a specified short-run nu- weight to the lagged implications of its actions merical goal could be counterproductive to the beyond a short-term forecast horizon. This simlonger-term effort. Indeed, we do want a clear ply can't be incorporated into annual numerical idea of what to "shoot at" over time—sustained, objectives. noninflationary growth. But the channels of in- As a practical matter, I would despair of the fluence from our actions—the purchase or sale of ability of any Federal Reserve Chairman to obsecurities in the market or a change in the tain a meaningful agreement in the short run on a discount rate—to final spending totals are com- single numerical "objective" among 12 strongplex and indirect, and operate with lags, extend- willed members of the FOMC—meaningful in the ing over years. The attempt to "fine tune" over, sense of being taken as the anchor for immediate say, a six-month or yearly period, toward a policy decisions. Submerging differences in the numerically specific, but necessarily arbitrary, outlook in a statistical average would, I fear, be short-term objective could well defeat the longer- substantially less meaningful than the present term purpose. approach. Equally dangerous would be any implicit as- As you know, we adopted this year the apsumption, in specifying an "objective" for GNP, proach of indicating the "central tendency" of that monetary policy is so powerful it could be Committee thinking as well as the full range of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Federal Reserve Bulletin • August 1983 opinion. These "estimates" provide, it seems to flicts" should diminish as internal stability is me, a focus for debate and discussion about more firmly established. policy that, in the end, should be superior to an The idea of a more structured international artificial process of "objective" setting that may system of exchange rates to enforce greater obscure, rather than enlighten, the real dilemmas stability in the international monetary and tradand choices. ing system raises issues far beyond those I can Your questions, Mr. Chairman, went on to deal with here. I do not believe it would be raise the issue of international coordination of practical to move toward such a system at the monetary policy and whether or not to stabilize present time, but neither would I dismiss such a exchange rates multilaterally. I can deal with possibility over time should we and others mainthese important issues here only in a most sum- tain progress toward the necessary domestic mary way. prerequisites. Coordination, in the broad sense of working together toward more price stability and sustained growth, is plainly desirable—indeed it must be the foundation of greater exchange rates CONCLUDING REMARKS and international financial stability in the common interest. But stated so broadly, it is clearly a In important ways, even more progress toward goal for economic policy as a whole, not just our continuing economic objectives has been monetary policy. made during the past six months than we antici- The appropriate level of interest rates or mon- pated. But it is also true—partly because ecoetary growth in any country are dependent, in nomic growth has increased—that the need to part, on the posture of other policy instruments deal, promptly and effectively, with the obstacles and economic conditions specific to that coun- to sustained growth and stability have become try. For that reason, explicit coordination, inter- more pressing. Those obstacles are well known preted as trying to achieve a common level of, to all of you. There is, indeed, little disagreefor instance, interest rates or money growth, ment, conceptually, about their nature. may be neither practical nor desirable in specific What has been lacking is a strong consensus circumstances. What does seem to me desir- about the specifics of how, in a practical way, to able—and essential—is that monetary (and oth- deal with them. There should be no assumption er) policies here and abroad be conducted with that monetary policy, however conducted, can full awareness of the policy posture, and possible itself substitute for budgetary discipline, for open reactions, of others, and the international conse- and competitive markets, for inadequate savings, quences. In present circumstances, we work or for structural financial weaknesses. toward that objective by informal consultations The world economy offers ample illustration of in a variety of forums with our leading trade and the dangers of procrastination and delay in the financial partners, recently on some occasions face of political impasse, and in the hope that with the presence of the Managing Director of problems will subside by themselves—only to be the IMF. faced, in crisis circumstances, with the need for As this may imply, I believe a greater degree of still stronger action in an atmosphere of shatexchange market stability is clearly desirable, in tered confidence. That great intangible of confithe interest of our own economy, but that must dence, once lost, can only be rebuilt laboriously, rest on the foundation of internal stability. In step by step. recent years, in my judgment, the priority has Here in the United States we have, with great clearly had to lie with measures to achieve that effort, already gone a long way toward rebuilding necessary internal stability. In specific situa- the foundation for growth and stability. We are tions, particular actions may appear to conflict not today in crisis. The American economy—for with the desirability of exchange rate stability; all its difficulties—still stands as a beacon of that possibility is increased when the "mix" of strength and hope for all the world. fiscal and monetary policy is far from optimal, as We know something of the risks and difficul- I discussed earlier in my statement. Such "con- ties that could turn the outlook sour. But I also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 609 know that the actions necessary to make the are within our grasp. We have come too far, with vision of stability and sustained growth a reality too much effort, to fail to carry through now. Chairman Volcker presented similar testimony before the Senate Committee on Banking, Housing, and Urban Affairs on July 21, 1983. Statement by Michael Bradfield, General Coun- randum.1 While I have tried to address all of the sel, Board of Governors of the Federal Reserve issues directly affecting the Federal Reserve, as System, before the Subcommittee on Commerce, the subcommittee has recognized, because of Consumer, and Monetary Affairs of the Commit- pending litigation or regulatory action I am cirtee on Government Operations, U.S. House of cumscribed in what I can say about certain Representatives, July 21, 1983. matters, and, in particular, the commercial paper case now pending before the Supreme Court and I appreciate the opportunity to appear before this the question of pending applications to purchase subcommittee to discuss the issues raised by the state-chartered banks in South Dakota. Memorandum of Interrogatories concerning de- As an aside, I cannot resist the temptation to velopments in the legal framework of the Ameri- bring to the subcommittee's attention the reaccan financial system and financial services indus- tion of the courts when they have focused on try. In that comprehensive memorandum, the decisions of the Board affecting some of the subcommittee has raised the crucial issues now matters now before this subcommittee. In the before the Congress, the federal and state bank- matter of commercial paper, the Court of Aping and thrift supervisory authorities, and the peals for the District of Columbia Circuit found financial community on what is the appropriate that in applying the Glass-Steagall Act the scope of powers of depository institutions and Board's "ruling and the reasoning which supwho may own them—in other words the proper ports it are essentially correct," and the Second dividing line between banking and commerce. Circuit, in a decision handed down on Monday of The subcommittee has focused on the defini- this week, found that the Board's interpretation tion of the term "bank," innovations in securi- of Glass-Steagall as it applies to discount brokerties activities for banks and thrifts, the ability of age "was reasonable and entirely consistent with banks to enter into insurance activities, the ex- the Act's language and policy." pansion of the powers of thrift institutions, and In this introductory statement I would like to their holding companies, as well as the powers of give special emphasis to what has undoubtedly both thrift and bank service corporations. The already become quite clear to this subcommittee. Memorandum of Interrogatories has pointed to a Although there is disagreement among the federnumber of these areas in which regulatory deci- al regulators—I would not be candid if I did not sions of a legislative character have been taken acknowledge that in some cases there has been that break new ground in terms of the definition sharp disagreement about the appropriate interof bank, the types of institutions that may own pretation of existing law—there is broad agreebanks, and the activities in which banks may ment that the present legal situation is not acengage. ceptable. The anomalies among the powers and This subcommittee's examination of the appli- authorities of depository institutions offering cation of present law by the federal and state similar services and the premium placed on reguregulatory agencies is especially important be- latory inventiveness have created a situation of cause it can serve to focus on the present serious competitive unfairness and a potential for instalegal issues and then serve both as a foundation bility. Moreover, in this situation, as pointed out and a springboard for congressional consider- by the memorandum, litigation has proliferated, ation of fundamental changes in the existing legal structure governing the definition and powers of depository institutions. In an appendix I have 1. The appendix to this statement is available on request from Publications Services, Board of Governors of the Federexamined in detail questions raised in the memoal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Federal Reserve Bulletin • August 1983 adding major elements of cost and uncertainty to and Penn Square matters, demonstrates that the financial planning that can and should be avoid- increasingly large size of financial institutions, ed. Congressional action is urgently needed to the close integration of financial markets, and the redraw rules that were once clear and workable, potential adverse impact that serious financial but are now blurred. difficulties pose for the economy in view of this The law, as it had been applied until now, environment put a high premium indeed on asprohibited commercial and industrial firms from suring that our economy continues to have a owning banks, and banks have been limited to a stable and workable banking and financial sysfairly narrow range of financial services in addi- tem. tion to banking. These rules, applicable to both There are many manifestations of these policy nonbanking and banking firms, were established concerns, including bank examination and superfor basic policy reasons that are fundamental to vision, deposit insurance, and discount window the role banks play in our economy—a role that access. In the context of our present discussion, requires some degree of public supervision be- it is fair to point out that the Bank Holding cause its successful fulfillment is so important to Company Act is one of the primary tools the the proper functioning of our economy. Congress has used to carry out the objective of Except in times of economic stress, we tend to achieving a safe and sound banking system. The take the financial system, and particularly the act has done this, in part, by limiting the scope of important part that banks play in that system, for banking companies' activities to those that are granted. I believe it would be useful, as a frame- closely related to banking, and excluding those work for our discussion, to outline briefly these activities outside banking that would be risky functions and highlight their importance to the and could eventually endanger depositors' funds economy. as well as the payments and financial system as a First, banks are the safekeepers of our funds, whole. It also has sought to encourage prudence which must be readily available, often on de- in the conduct of nonbanking activities by authomand, when we need them, establishing a ten- rizing the establishment of standards for managedency toward a mismatch between the maturity rial competence and financial prudence. In addiof assets and liabilities that requires special pru- tion, and equally important, it seeks to assure dence in management. Second, banks serve as impartiality in lending and the avoidance of conthe mechanism through which payments are flicts of interest. made in the economy. Third, by virtue of their The policy objectives of the act that I have ability to take deposits, they hold large amounts outlined, and the means of achieving them, have, of funds, giving them, relative to the communi- of course, to be periodically reevaluated as conties they serve, unusual power by their ability to ditions change. Such a reexamination of basic allocate these resources, and consequently un- principles is particularly appropriate in the conusual responsibility to remain as independent text of the significant erosion, at the margin, of providers of credit to the rest of the economy. the commerce-banking barrier, as nonbank fi- Fourth, they are the vehicle through which mon- nancial institutions have, in recent years, begun etary policy is transmitted to the economy. to provide banking-like services free of the pru- For all these reasons: to assure fiduciary re- dential rules and reserve requirements applicable sponsibility and confidence in the system, to to banking, and as banks have entered into new maintain a safe and sure payments mechanism, financial services areas such as financial futures to sustain banks as impartial providers of credit and discount brokerage. I would note, however, to the economy, and to provide an effective that despite this tide that is gathering force and a means for the conduct of monetary policy, banks corresponding trend toward conglomeration of and their holding companies are, and should be, financial services, to date banks have maintained subject to a certain degree of supervision to their market share and still provide the core of assure prudence, impartiality in the provision of traditional banking services to the nation's econcredit, and fair competition—the hallmarks of a omy. safe and sound banking system. Recent experi- But the forces of competition will inevitably ence in times of stress, such as in the Drysdale accelerate existing trends and the system will Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 611 continue to evolve—possibly in an increasingly with any legislation redrawing the lines between haphazard and dangerous manner if no overall banking and commerce, the Board has forwarded framework is established that reconciles the for congressional consideration draft legislation forces of marketplace change with the require- to halt temporarily new acquisitions of banks and ments of a safe and sound banking system. thrifts by nondepository institutions. This legis- Numerous developments are producing inconsis- lation would also include a similar respite on the tent and anomalous results. commencement of new types of nonbanking ac- Just a sampling of recent developments de- tivities by state-chartered banks. We believe that scribed in the subcommittee's memorandum this legislation, if it is firmly confined to a fully illustrates this point. The combination of temporary period, will provide the Congress with banking and commerce permitted by the liberal the time required to act upon the necessary, interpretation of the term "bank" has created a fundamental, permanent restructuring legislawave of acquisitions by securities, insurance, tion. and other firms of "nonbanks" and of "bank- Congress now has before it, in the form of the like" thrifts. State legislation has authorized Treasury's proposed Financial Institutions nonbanking activities for banks that are prohibit- Deregulation Act of 1983, a comprehensive draft ed to banking institutions under federal law, and bill that addresses the fundamental issues raised have provided broad charter powers to enter a by the subcommittee's memorandum. This prowide range of businesses to institutions previous- posal defines and broadens the scope of powers ly characterized as thrifts. Regulatory interpreta- that may be exercised by bank and thrift holding tion of the term "bank" may also allow, despite companies. In doing so, it draws the policy line the Douglas Amendment, chartering of 31 na- between commerce and banking clearly, and is tional "nonbanks" in 25 states under single thus capable of putting an end to regulatory ownership. Finally, the regulatory approval of actions of a legislative character and legal conthe applications of mutual fund underwriters to flict on the interpretation of these regulatory acquire national banks and the interpretation of decisions. Moreover, while the bill expands the the Glass-Steagall Act as not applying to subsid- powers that may be exercised by depository iaries of nonmember banks have raised impor- institution holding companies, it reciprocally extant questions about consistency in the applica- pands the universe of financial firms that may tion of this act and about the preemption of own depository institutions. congressional discretion in a matter that was These changes in powers have been put forbefore the Congress at its last session and that ward in the context of a streamlined procedure the Congress will be addressing at the current for supervisory review. The legislation also assession. sures consistency with the requirements of a safe When all of these developments are taken into and sound financial system by providing full account, together with creation of new products authority to take into account the considerations and conglomeration of financial services firms, it necessary to assure adequate capital and manais appropriate to return to my starting point—the gerial capability, avoidance of any measures that broad agreement among the regulators that ac- would impair the safety and soundness or impartion at the federal level is urgently needed to tiality of subsidiary banks, as well as those reconcile ad hoc regulatory and haphazard mar- measures necessary to assure safe and sound ketplace changes with the requirements of a safe financial practices. and sound banking system. While noting several aspects that need further As I have stressed, there is a clear need for the analysis, the Board has given its general endorseenactment of comprehensive banking legislation. ment of this proposed legislation. If the present To avoid preemption of congressional discretion confusion in the legal framework is to be ended, by a continuation in the surge of new regulatory the Congress should act quickly on this compreauthorizations that are likely to be inconsistent hensive legislation. • Additional statements follow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin • August 1983 Statement by Nancy H. Teeters, Member, Board We are particularly concerned about this type of Governors of the Federal Reserve System, of fraud because of its potential effect on the before the Subcommittee on Consumer Affairs payments system. The trend in recent years and Coinage of the Committee on Banking, toward use of electronic fund transfers and credit Finance and Urban Affairs, U.S. House of Rep- cards in place of checks and cash has presented resentatives, July 27, 1983. the possibility of significantly reducing costs and increasing efficiency. However, if financial insti- I appreciate the opportunity to express the views tutions are forced to increase prices in order to of the Federal Reserve Board on the efforts to cover fraud losses, consumers and businesses deal more effectively with credit card fraud may have less incentive to use these more effithrough enactment of H.R. 3622, the "Credit cient means. In addition, continued widespread Card Protection Act." Losses resulting from acceptance of these methods may depend in part credit card fraud have grown at a disturbing rate on the public's confidence in their security and in the last several years. For example, total fraud reliability. To the extent that this confidence may losses for Visa and Mastercard have doubled in be impaired by the increasing threat of fraud, only three years—from around $57 million in our ability to improve the payments mechanism 1979 to close to $115 million in 1982—with atten- may diminish. Thus, the Board believes that dant costs to banks and other financial institu- credit- and debit-card fraud has implications betions, retail businesses, and, to the extent these yond the losses to individual businesses and costs are passed on indirectly, to consumers. consumers. These hearings, therefore, are important and Because of the dramatic growth of fraud timely. losses, and because there may be gaps in the I should note at the outset, however, that coverage of the existing prohibitions on card although the Board shares the general concern fraud, the Board generally supports legislation about this increase in fraud, we do not have any designed to strengthen the prohibitions and close special expertise in the area of credit card fraud loopholes. H.R. 3622 appears to be designed to legislation. Although both the Truth in Lending accomplish a good deal in that direction. Act and the Electronic Fund Transfer Act con- One technical point we suggest the subcomtain criminal penalties for credit and debit card mittee consider is the proper placement of any fraud, the Board does not issue implementing new legislation in the structure of existing law. regulations for those provisions, nor does it have H.R. 3622 would amend the credit card provia role in enforcing them. The Board is, nonethe- sions of the Truth in Lending Act. Since some less, glad to assist the subcommittee in any way portions of the bill are intended to affect debit it can, but my testimony will be brief. cards, automatic teller machine cards, or other The increase in fraud involving credit and means of access to deposit or asset accounts, it debit cards imposes considerable costs on banks may be appropriate to consider incorporating and other financial institutions that issue cards. parallel provisions in the Electronic Fund Trans- Moreover, although account holders are to some fer Act. The EFT Act already contains providegree protected by the Truth in Lending and sions on fraudulent access to deposit accounts, Electronic Fund Transfer Acts from liability for and placing any new prohibitions in the same act unauthorized account access, they may bear would reduce possible confusion and duplicasome direct liability, and indirectly they may tion. The Board would be pleased to draft statuultimately bear the costs through higher prices or tory language or offer technical assistance to reduced services. According to some industry implement this suggestion. Another possible apfigures, the cost of fraud per transaction has proach would be to consolidate and enact new increased from less than 1 cent per transaction in prohibitions on credit- and debit-card fraud as 1973 to about 8 cents today. part of the U.S. criminal code. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 613 Statement by Paul A. Volcker, Chairman, Board the most important of those factors, but not the of Governors of the Federal Reserve System, only one. before the Subcommittee on Economic Policy of the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, July 28, 1983. THE FORMULATION OF MONETARY POLICY I am pleased to have this opportunity to discuss Monetary policy is reflected mainly in decisions issues bearing on the coordination of monetary by the Board of Governors on the discount rate and fiscal policies and on the request to this and by the Federal Open Market Committee committee, contained in the First Budget Resolu- (FOMC), which normally meets eight times a tion, to frame a sense of the Congress resolution year, about open market operations. The memwith respect to appropriate information bearing bers of the Board and the (Committee regularly on the assumptions and goals of monetary poli- receive a wide variety of economic and financial cy. Chairman Garn has also requested a review information about the economy in preparation of how the Federal Reserve formulates monetary for these decisions. The great bulk of that inforpolicy and the types of assumptions or goals that mation consists of publicly available statistics, are used in policy formulation. surveys, and reports, but the material is also Broadly stated, the goals of all our general analyzed and summarized by staff at the Board, economic policies are clear enough—we all want in written documents as well as oral presentato see sustained economic growth, high levels of tions. The staff often presents forecasts for sevemployment, and price stability. Those general eral quarters ahead, based on a combination of economic objectives are basic to the formulation econometric and judgmental techniques. Alterof monetary or other policies. But, as you know, native forecasts may be set forth, depending we cannot always reach all those goals in the upon different policy assumptions, and areas of short run or continuously, and monetary policy, uncertainty are emphasized. Individual members by itself, cannot satisfy all of them even over of the FOMC will also have available to them time. analyses and forecasts prepared at the different Fiscal, regulatory, and other policies of the Federal Reserve Banks. government and wage and price policies in the At meetings of the FOMC, Committee staff private sector all affect economic activity, also usually sets forth, for purposes of discusprices, productivity, and the rate of economic sion, alternative approaches that might be congrowth, and particularly bear upon our ability to sidered by the Committee in its formulation of reconcile our several goals. Moreover, the do- policy decisions. This material attempts to set mestic economy has come to be influenced more out the implications of possible approaches, inand more by external developments. The oil- cluding alternative monetary and credit targets price shocks are only the most obvious example. for a year ahead, as well as an evaluation of The recent problems with major debtor coun- alternative short-run approaches to attainment of tries, exchange rate behavior, and economic such targets. These analyses suggest the direcgrowth in other countries, as it affects demand tion of possible impacts on market developfor our exports, all have influences on our econo- ments, recognizing that those developments may my in one degree or another, frequently in ways be dominated by other factors including, over that cannot be fully, or at all, compensated for by time, budgetary decisions. The FOMC also remonetary policy. views closely recent developments in domestic But the Federal Reserve does need to take and international financial markets and the imaccount of these kinds of developments at home plementation of Federal Reserve operations and abroad as it formulates policy, and they since the last meeting. could affect prospects for achieving the basic Policy discussions center on the members' economic goals of economic activity, prices, and own assessments of the economic and financial employment within a given time frame. The outlook, and their view of its implications for the fiscal policy of the federal government is one of formulation of policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Federal Reserve Bulletin • August 1983 Underlying these discussions, there is com- measures, rather than a single statistical definimon acceptance of the broad goals I stated at the tion of money or credit. The use of ranges rather start, which are, of course, incorporated in law. than "point" targets reflects in part the impracti- At the same time, individual members may well cality—and many would argue, the undestabilihave different points of concern or emphasis in ty—of controlling monetary growth precisely. the short run; they may disagree about the out- More broadly, the ranges, and the related judglook; and they bring to the table different concep- ment about which target or targets are more tual or analytic emphases. For instance, some significant at particular times, provide an elemembers will tend to put more weight on particu- ment of, to me, appropriate flexibility in the face lar money supply developments, while others of shifts in relationships of the aggregates to the will put more stress on the developing conditions economy or other unforeseen developments. The in credit markets. I believe all members consis- Committee can, of course, change targeted tently recognize the need to consider the implica- growth ranges (as was the case in July with tions of current policy over a considerable period respect to the Ml ranges) if deemed necessary or of time, but, in particular situations, there will be desirable in the light of events. But I believe differences as to the relative weights put on there is, and should be, a presumption that such short- or longer-run factors, or on price, growth, changes will be made only in the light of highly or other objectives. persuasive evidence. These differences in approach are natural to a The results of the FOMC's deliberations about degree in a committee structure made up of longer-run money and credit targets, and the independently appointed officials. In the end, the associated economic outlook, are presented to differences have to be reconciled in a specific the Congress twice a year in the Board's "Moneoperational decision. But the differences in em- tary Policy Report Pursuant to the Full Employphasis and assumptions about the economic out- ment and Balanced Growth Act of 1978." In that look that lie behind the decision are one reason report, we currently provide the Congress with why we have felt it more constructive to provide annual ranges of growth for M2, M3, Ml, and the Congress, in our semi-annual reports, with a total credit. range of assumptions about economic variables In addition, the Congress is given associated rather than a simple "objective" about which, in economic projections covering the same period the short run at least, any consensus might well for nominal gross national product, real GNP, be artificial. the implicit price deflator, and the unemploy- When setting a course for monetary policy, the ment rate. Committee members take the government's fis- In February, these monetary ranges and assocal policy basically as a "given." There is often, ciated economic projections are shown only for of course, a degree of uncertainty about the the current year. In July, the monetary ranges likely budgetary developments, particularly in and projections are shown for the current year the period before a budget resolution is adopted and the ensuing year. and implemented. Looking several years ahead, The associated projections are shown in a the uncertainties increase. Typically, however, range sufficient generally to encompass all Comthe dimensions of the budget can be approximat- mittee members, and—beginning this year—also ed well enough to provide a reasonable basis for for a much narrower range (labeled the "central assessing the direction of its impact on overall tendency") to capture the expectations of most economic performance and credit market condi- Committee members. These projections or foretions. casts reflect the views of the individual Commit- As you know, the FOMC expresses its policy tee members as to the implications of monetary intentions over time, as required by the Full policy decisions, as well as other factors such as Employment and Balanced Growth Act of 1978 fiscal policy, but the members may not have a (Humphrey-Hawkins Act), in terms of monetary common view in those respects. Those projecand credit targets. Those annual targets are ex- tions are also compared with administration forepressed in ranges and attention is paid to several casts for the same period, and they could also be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 615 compared with forecasts by the Congressional tary affairs as in other policies. But, in concrete Budget Office or the assumptions that lie behind instances, coordination may have an ambiguous the budget resolution adopted by the Congress, meaning. Does it mean, for example, that meadepending upon the time period. sures that increase a deficit should be accompa- These semi-annual reports to the Congress, as nied by more rapid money growth, so that the presently structured, seem to me to provide a larger deficit could presumably be readily fireasonable basis upon which the Congress can nanced for a time—at the longer-run risk of evaluate the implications of the Federal Re- inflation? Or does it mean that a higher deficit serve's monetary policy and to come to a view should be accompanied by less rapid money about whether monetary and fiscal policies are growth to help assure that the deficit does not appropriately complementary. No doubt, they generate inflationary pressures—at the possible can be improved—which I take it is one of your expense of greater near-term market pressures? concerns about which I will say a few words in a Answers will depend on particular circummoment. At the same time, I believe we should stances, on judgments about the relevant time be cautious about placing too much weight—in frame, and on other factors. either monetary or fiscal policy—upon a particu- Similar questions can be asked about measures lar, and fallible, projection. to reduce the deficit. Should the Federal Reserve The uncertainties inherent in any economic raise money growth, leave it unchanged, or lowforecast are one reason why the presentation of er it if the Congress takes steps to reduce signifiranges of views, rather than a "point" forecast, cantly the deficit below current expectations is useful. Even so, events have, not infrequently, built into the economic outlook? The answer carried one or more economic variables outside would again depend in part on one's analytic the forecast range, and part of the policy problem framework, but more pragmatic answers would is deciding how to respond to such unforeseen depend on assessment of the effects of reduced developments. Some unexpected changes may federal credit demands on interest rates, credit be favorable—stronger growth or lower infla- markets, and private spending; the sensitivity of tion—and would not necessarily call for any inflationary expectations to changes in money adjustment in policy; others may be clearly unfa- targets; and judgments about the trend of busivorable in terms of expectations or longer-term ness activity. objectives; perhaps more frequently there will be As this discussion suggests, there is no simple a mixture of "good" and "bad" news. In none of trade-off between fiscal and monetary policy. these cases should it automatically be assumed The budgetary decision will, of course, affect the that policy adjustments to reach a pre-set objec- distribution of the available supply of credit in tive for the year are necessarily desirable. the economy and interest rates, and the mix of In that connection, the essence of the policy consumption and investment, but monetary poliproblem is the need to look beyond any short cy cannot automatically offset the distributional forecast period to the longer-term cumulative or market effects of fiscal policy. effects of policy on the economy. What may I interpret the congressional interest in coordiappear a reasonable and desirable trade-off in the nation as seeking ways to elucidate these choices short run—say, between more growth and less rather than implying a simple or fixed trade-off inflation, or more growth and budgetary re- between fiscal and monetary policy. I also bestraint—may well turn out to have sharply ad- lieve the present reporting framework provides verse effects if repeated over time. an appropriate basis for such analysis and discussion, but that it could be improved in one aspect. Specifically, during the past year, the FOMC THE "COORDINATION" OF FISCAL AND has presented an annual range of growth for total MONETAR Y POLIC Y nonfinancial debt of domestic economic sectors as one of its longer-range money and credit On the face of it, more "coordination" always targets. It may be of further help to the Congress sounds better than less—in our fiscal and mone- in its deliberations on the budget if, in that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 Federal Reserve Bulletin • August 1983 framework, we amplified the discussion of the inflation (and ultimately higher interest rates) implications of the budget outlook, or alternative that that course could imply. More progress budgetary outlooks depending on whether a bud- toward reducing the deficit would maximize the get resolution has been passed, for the distribu- prospects, consistent with these targets, for lowtion of debt between the private and governmen- er interest rates over time, supporting housing tal sectors and for potential credit market and other interest-sensitive sectors of the econopressures. While I have often touched upon my in particular, and reducing the risks of credit these matters in testimony, implications or risks market congestion generally. with respect to the availability of credit to the mortgage market, the bond market, and other loan markets could be noted more directly in the TARGETING THE GNP report itself. Such judgments, in the nature of things, could The question has been raised whether "coordinot be precise, and many other important fac- nation" would not in some sense be better tors—the inflation outlook, the strength of eco- achieved if the Federal Reserve were to provide nomic activity, and others—impinge strongly on "objectives" for nominal and real GNP and credit flows and interest rates. Moreover, I do prices instead of the projections we now give. I not believe a central bank should engage in the do not believe so. The issue is more than semanhighly uncertain process of interest rate forecast- tic. As detailed in the appendix to this statement, ing. Within that limitation, however, I do believe a GNP objective for monetary policy would turn our reports could constructively be amplified in attention away from the role of other public and the way I have suggested. private policies in affecting economic activity With regard to the specific request that the and prices, promise much more than could be Senate Banking Committee report by September delivered, and risk concentration on short-term 30 a sense of the Congress resolution bearing on (and not readily controllable) results at the exthe coordination of monetary and fiscal policy pense of continuing longer-range objectives.1 under present circumstances, I would note the I well understand that budgets must incorpoeconomic projections in our mid-year report rate certain assumptions as to business activity, were based on a budget assumption that is not both because of the necessity for specific revegreatly different from that contained in the most nue and spending forecasts and because the recent budget resolution, although we did factor timing and nature of the underlying policy deciin the contingency that some of the savings and sion may be influenced by the near-term outlook. revenue action called for in the resolution might But we should not lose a sense of skepticism not be achieved. The projections with respect to about the accuracy of any forecast—as illustratgrowth and inflation are also generally consistent ed by events this year. Moreover, to the extent with the administration forecasts and do not possible, the budget outlook and structure differ greatly from assumptions underlying the should be evaluated independent of a particular budget resolution. phase of the business cycle. For instance, in As I spelled out in my testimony last week, I making judgments looking ahead as to how much do believe prospects for lower interest rates and the deficit should be cut, estimates of the strucfor sustained and balanced recovery would be tural, continuing portion of the deficit are releenormously assisted by more vigorous and earli- vant. er action to deal with the budgetary deficits. As I do not believe it wise, in either monetary or things now stand, rising private credit demands, fiscal policy, to commit ourselves to a particular in reflection of rising private activity, are begin- short-term objective for, say, the GNP or prices ning to clash with the continuing heavy financing that may or may not turn out to be attainable, needs of the government. The FOMC has not felt that an appropriate response to that development would be still higher targets for monetary and 1. The attachments to this statement are available on request from Publications Services, Board of Governors of credit growth, with the potential for greater the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 617 and the acceptability of which may depend upon vide additional analysis on the possible effects of circumstances unknown at the time the objective broad fiscal policy decisions. is established. We have not wished, and do not now wish, as an organization to make more specific recommendations about budgetary policy, such as the nature of saving or spending decisions, areas that CONCLUSION are not our responsibility, although I, or others in the Federal Reserve, are sometimes asked to Debate and consensus about our longer-term comment as a matter of personal opinion. I also economic objectives and methods of reaching believe we should resist the temptations to set them are inherent in the policymaking process. out short-term "objectives" in such specific Through our reports and testimony, we in the terms as to invite unrealistic expectations, coun- Federal Reserve want to contribute constructive- terproductive "fine tuning," and ultimate disaply to that process—and I believe we do by means pointment. Within those limitations, I look forof detailing our monetary policies, by setting ward to working with you in responding to the forth our economic projections and assumptions, request in the budget resolution to explore possiand by publishing and analyzing economic data bilities for improving the flow of information, and trends. As I have suggested, we could pro- understanding, and "coordination." • Statement by Paul A. Volcker, Chairman, Board which has included the worst inflation and the of Governors of the Federal Reserve System, longest period of economic stagnation in the before the Subcommittee on Domestic Monetary postwar era. Moreover, economic doctrine has Policy of the Committee on Banking, Finance seemed less settled in recent years, and a period and Urban Affairs, U.S. House of Representa- of rapid change in financial markets has raised tives, August 3, 1983. new questions. Perhaps most important recently have been the heavy burdens placed on mone- I appreciate the opportunity to appear before this tary policy to deal with inflation and concern committee to discuss appropriate guides for the about how monetary and fiscal policy mesh at a conduct of monetary policy, including more spe- time of unprecedented federal budget deficits. cific discussion of the changes you have pro- Although the specifics of different suggestions posed, Mr. Chairman, in the Full Employment vary greatly, it seems to me that at least three and Balanced Growth Act of 1978 (Humphrey- considerations—whether articulated clearly or Hawkins Act). not—underlie the various proposals. There has been a broad array of suggestions First, there is a desire for information so that put forward in recent years—by those in and out the objectives and techniques of Federal Reserve of the Congress—to change the way monetary policy are as clear as possible, in the interest of policy is conducted and the way it is communi- improved understanding, oversight, and coordicated to the Congress and to the public. Of nation. course, there are always debates and proposals Second , some urge the desirability of reducing on how to improve the development and imple- the uncertainties they see as inherent in human mentation of policy—such debates and proposals judgment. They want to substitute some simple are part of our democratic governing process. and easy-to-understand rule that specifies how My sense, however, is that the number and monetary policy is to be operated and that will diversity of these suggestions and the attention serve as a clear and unambiguous standard given them in the Congress have been increasing. against which to measure Federal Reserve per- The concern about monetary policy reflects formance. broader concerns about the performance of the Finally, some proposals could be motivated— American economy over the last decade or more, whether explicitly or not—by a desire for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin • August 1983 Congress (or an administration) to exert direct to announce regularly forecasts or targets. The control over setting and implementing monetary forecast—ultimately right or wrong—would itself policy. That is not usually a professed objective; become an important market factor, obscuring but the effect of some proposals would be to and distorting the underlying trends and presfacilitate or even encourage such an outcome. sures. In the event, the result would often be to I would like to take a few minutes to explore mislead market participants and provide false each of these approaches. signals, especially since monetary policy alone Plainly, a full exchange of useful information has at best a limited ability to achieve stated can enhance the ability of the Congress, the interest rate objectives. administration, and the central bank to formulate Proposals that suggest fixed rules for the conappropriate economic policies; and it can in- duct of monetary policy usually have two ascrease the public's understanding of monetary pects: first, that some hard and fast formula for policy objectives and intentions. A formal mech- guiding monetary policy be adhered to in practianism for furnishing you with information on cally all circumstances; and second, that the monetary policy was established in the Hum- formula be fairly simple—typically calling for phrey-Hawkins Act. Over time, we have modi- "ease" or "restraint" in accordance with movefied our reports in response to requests for ments in a single economic variable. additional information, or certain types of infor- The appeal of a simple rule is obvious. It mation, and we are ready to work with the would simplify our job at the Federal Reserve, Congress to make them more useful. make monetary policy easy to understand, and At some point, of course, mere multiplication facilitate monitoring of our performance. And, if of data or report pages may be more confusing the rule worked, it would reduce uncertainty than helpful. Conversely, the beguiling simplicity about the course of the economy and would of some ways of providing information could assist consumers and investors in planning their turn out to be counterproductive. For instance, spending and saving. proposals along these lines sometimes ask for I have a certain sympathy for these calls for a specific, single-number forecasts of economic monetary rule. But, unfortunately, I know of no variables such as gross national product or inter- rule that can be relied on with sufficient consisest rates. But, the record of the past few years tency in our complex and constantly evolving confirms that economic forecasts are not precise; economy. Changes in technology and governto give a single number may well imply a false ment regulations, shifts in the asset preferences sense of both precision and controllability. of households and businesses, unexpected sup- As you are well aware, the governing bodies of ply shocks such as food or energy price disturthe Federal Reserve are a Board and a Commit- bances, as well as events in foreign economies tee composed of independent numbers with di- and financial markets, all can alter the relationverse views. Those views cannot, except artifi- ships between the performance of the economy cially, be condensed into a single forecast or and the target variables suggested in the various specific short-term objective. I continue to be- rule proposals. lieve that a more desirable approach, and all we A number of ideas have been put forward over can legitimately do, is provide ranges—such as the years, focusing on such things as the growth those given now—that encompass (and give rate of a particular monetary aggregate, the forsome flavor of the inevitable uncertainties of) our eign exchange value of the dollar, levels of expectations for future economic performance. nominal or real interest rates, and the price of In that light, I was interested to note that the gold or other commodities. Attention to all of latest proposal of Chairman Fauntroy incorpo- these variables may be useful at times—indeed, rates the concept of ranges of growth in GNP in most of the time. But experience shows clearly setting objectives. that these indicators often give conflicting sig- In the case of interest rates, there would be the nals, and choices must be made. For instance, obvious prospect of misinterpretation and misun- the relationship between monetary growth and derstanding were the Federal Reserve required prices or nominal GNP has been long studied, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 619 and has demonstrated a certain stability over As you know, we have placed particular time. It is a relationship we would ignore at our weight upon "targeting" and monitoring several peril. But it is also true that, historically, there is monetary and credit aggregates, and there considerable variability in the relationship over should, I believe, be a presumption—usually a periods of several quarters. Much more rarely, strong presumption—that past patterns will refor a variety of reasons, the relationship may cur. But I doubt—during a time of profound change more fundamentally, and during those institutional and economic change—a single rule periods focusing on a particular aggregate could or indicator will be so reliable that it can substibe a misleading guide to policy. tute for a degree of judgment and flexibility at Given the enormous changes in financial mar- times, particularly when various possible kets and regulations during the past few years, "rules" are giving conflicting signals. In other we may be in the midst of such a change in words, care must be taken in selecting the indica- "velocity" now. For example, last year some tor or indicators used in guiding policy; their measures of money growth exceeded the expan- reliability must be constantly monitored; and the sion of nominal income by an exceptionally large appropriate emphasis on any particular indicator amount—more than at any other time in the must be reevaluated in times of rapid change. postwar period. Individuals and businesses ap- I must emphasize, too, that a rule for monetary parently desired to hold more money than usual policy, however soundly based, cannot substirelative to incomes. Under those conditions, tute for poor policies in other areas of governattempts to follow a preset and inflexible money mental responsibility. In fiscal policy, we have growth rule with Ml based on historical trends long since abandoned a simple rule—an annually would have resulted over the past year, in my balanced budget—for good and sufficient reason. judgment and the collective judgment of the In the process, I fear we have lost some of the Federal Open Market Committee, in an apprecia- sense of continuing discipline embodied in that bly "tighter" policy than intended at the start of proposition—an example of the danger implicit the period. That, as I have indicated repeatedly in avoiding any sense of a continuing rule. in reports to you through the year, is why we As I understand it, the broad thrust of your acted as we did in accommodating relatively proposal, Mr. Chairman, is not to establish a rapid growth of Ml for a time. simple operational rule for monetary policy in A rule that targeted some market rate of inter- terms of one intermediate, and presumably est would have potentially more serious pitfalls. closely controllable objective, such as the money Recent events provide a great deal of evidence supply, or interest rates, or the price of gold. with regard to our inability to judge with any Rather, it would eschew such rules in favor of precision a level of interest rates—nominal or directing policy actions toward a particular rate "real"—needed to obtain a desired performance of growth of economic activity and prices— of the economy. For instance, the recovery of objectives that would be approximated in a taraggregate demand recently—particularly in the geted path for the nominal GNP. credit-sensitive sectors—has been much stronger Specifically, your proposal would have us esat prevailing interest rates than most forecasters tablish and announce objectives for a new tarexpected six or eight months ago. The difficulty get—growth in nominal GNP—for the year of setting an interest rate rule is that the appro- ahead, would call for our forecasts of real priate rate level shifts over time with variations growth, inflation, and unemployment consistent in the strength of private demands and their with the nominal GNP for that period, and would sensitivity to credit conditions as well as with the require that we extend those objectives and stance of fiscal policy. forecasts over the ensuing three years. We would I do not suggest that monetary policy should continue to announce plans for the growth of ignore the variables advocated by the proponents money and credit, but in addition we would now of the various rules; quite the contrary, I am be required to report our plans for interest rates. suggesting that there is a degree of analytical and The appeal of such a proposal on the surface is empirical validity to most of them. not hard to understand. If a chosen path for GNP Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin • August 1983 could be achieved, the uncertainty in the eco- the focus was on the relatively short run—and I nomic outlook would be greatly reduced, allow- strongly suspect that various pressures would ing businesses and consumers, as well as the push the Congress into concentrating on that Congress and the administration, to make specif- time horizon. In addition, the impression conic plans for output, employment, and budgets veyed that monetary policy would be "held with greater assurance. If interest rates are pre- responsible" for meeting the targets would, I dictable and closely controlled by the Federal suspect, only weaken the will of the Congress Reserve, so much the better for orderly planning. and the body politic to deal with other difficult The public could turn its attention from such issues, such as the budget, essential to the sucarcane matters and abstractions as the money cess of economic policy as a whole. After all, supply and velocity, and from economic fore- why cut spending or raise taxes if, in the end, casting generally, secure in the belief that the monetary policy can, on its own, produce the Federal Reserve could and would make it all desired smooth trajectory of GNP? come out right. Moreover, uncertainties about the timing of Unfortunately, the implied promise of a fixed the effects of Federal Reserve actions on GNP GNP objective—and therefore the foundation for may actually make attempts to implement a GNP the benefits that would flow from it—is not valid: objective counterproductive. For example, an the Federal Reserve alone cannot closely effort to stimulate lagging GNP growth might achieve a particular GNP target that it or anyone have its greatest impact only after a considerable else would choose, especially over the one-year period when activity already was expanding span envisioned by the proposed legislation. again, adding to potential inflationary pressures Even less could it control the distribution of a and accentuating, rather than damping, the busigiven nominal GNP among prices and real out- ness cycle. Because of lags in the reporting of put, or predict or control the level of interest data, chances for such perverse results would be rates. heightened if the Federal Reserve took correc- The fact of the matter is that monetary policy tive actions only after receiving confirming eviis not the only force determining aggregate pro- dence that GNP was deviating from target paths. duction and income over several quarters ahead, However, to shorten the lags, reliance would and the policy actions taken affect those varia- have to be placed on forecasts of the economy. bles only with substantial and variable lags. As I indicated earlier, the uncertainty and unre- Large swings in the spending attitudes and be- liability of economic forecasts have been amply havior of businesses and consumers can affect demonstrated over recent years, and while preoverall income levels. In recent years we also diction is necessary and useful, I would be loath have seen the effects of supply-side shocks, as to grant to forecasts such a formal and potentialfrom oil price increases, on aggregate levels of ly inflexible position in the execution and formuactivity and prices. Among the tools of public lation of monetary policy. policy, budgetary decisions play an important In light of such considerations, we could prerole in determining economic activity and inter- sumably alter, with explanation to the Congress est rates. and the public, our GNP targets as needed I recognize that your latest proposals, Mr. through the year. But if this needed to be done Chairman, explicitly recognize these concerns frequently—as it might—it would undermine the by suggesting that the GNP and related objec- purpose of the proposal. tives be stated as ranges; in that sense, they are The independent status of the Federal Reserve closer to present practice. I am still concerned, that makes a longer-term view possible might however, that attempts to target GNP within a well be compromised with GNP targeting, since narrow range would, deliberately or not, provide the Federal Reserve could be under great presan unwarranted sense of omnipotence for mone- sure to conform its targets to some immediately tary policy, or economic policy generally, ulti- attractive number and then to act to achieve mately leading to a sense of disappointment. those targets. It is not hard to imagine that such That danger would be all the greater to the extent pressures might be particularly intense in elec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 621 tion years and that calls for a more expansionary ments, been willing to change the emphasis on or policy would dominate those for moderation, within our announced monetary targets when especially since the inflationary penalty of such a unusual behavior of velocity or other forces policy may come only after considerable delay. seemed to indicate that these targets were con- In sum, Mr. Chairman, an emphasis on short- flicting with the need to foster a recovery without run GNP objectives seems to me likely in many reigniting inflation. When such judgments have circumstances to run against our continuing ba- been reached, we have described the change in sic interest in achieving sustained economic operating approach promptly to the Congress growth at reasonably stable prices. It is not and to the public, as would be required in your difficult to imagine circumstances in which pres- proposals. sures to achieve short-run results would be coun- We have also seen, in these last six months, terproductive in terms of the continuing goals. more economic growth than was believed likely The temptation would constantly be present to earlier, or that we would have felt secure in "shade" objectives in an optimistic direction, or setting forth as an "objective." The lesson of the to trade short-term expansion for more infla- last year, it seems to me, is that the Federal tion—an inflation that in time would only under- Reserve cannot key its policy process entirely on mine the continuing long-term objectives. Those any one variable—we need to evaluate a variety dangers would be magnified by attempts to fore- of incoming data from the economy and financial cast—or, as some would have it, to target— markets—and that there is no substitute for a interest rates. Those forecasts would be a focus degree of judgment in weighing this information of public attention, and hesitancy in allowing and determining a course for policy. interest rates to fluctuate in accordance with All of this reflects my concern about certain of emerging—and possibly unanticipated—market the particular changes you propose in the lanpressures would in time be a destabilizing force guage of the Humphrey-Hawkins Act. But the for the economy as a whole. interest of this committee and others does sug- I do not mean to imply with these arguments gest that current arrangements for the statutory that monetary policy should ignore incoming guidance for reporting the intentions and impleinformation on GNP or forecasts of what effect a mentation of monetary policy do need debate planned policy course is likely to have on future and discussion—a clearing of the air. I hope growth of income. We, in fact, pay attention to a these hearings will themselves contribute to that broad array of economic indicators, and we have process, and help provide the basis for consenrefined and amplified the presentation of projec- sus and improvement, whether or not change in tions and forecasts to the Congress. We have, the statutory language proves necessary or desirbased upon our analysis of economic develop- able in the end. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

623 Announcements REAPPOINTMENT OF PAUL A. VOLCKERAS remove obsolete provisions, improve the organi- CHAIRMAN OF THE BOARD OF GOVERNORS zation of the regulations, and reduce the burden of compliance. The newly adopted revisions are President Reagan on June 18, 1983, announced in substantially the same form as proposed by the his intention to reappoint Paul A. Volcker as Board in February, with modification reflecting Chairman of the Board of Governors. Mr. public comment received. A conforming amend- Volcker's reappointment was subsequently con- ment to Regulation T concerning over-thefirmed by the Senate on July 27, 1983, and he counter markets has also been adopted. took the oath of office on August 6 for a four-year term. In making the announcement on his weekly PROPOSED ACTIONS radio broadcast, President Reagan stated: The Federal Reserve Board has extended the My Fellow Americans: As the saying goes, we inter- time for comment on its proposed revision of Regrupt this program for a news flash. Some years ago, a ulation Y (Bank Holding Companies and Change favorite movie theme was the crusading reporter. In in Bank Control) to August 1, 1983. In May the every such picture, the reporter—hat on the back of Board requested comment by July 18, 1983, on his head, clutching the phone—would yell, "Give me the city desk. I've got a story that'll crack this town a proposed revision of Regulation Y as part of wide open!" I've read that line a few times myself. the Board's review, simplification, and moderni- Well, I'm not wearing a hat or clutching a phone, but zation of all of its regulations. The Board exbefore getting into today's broadcast, I'd like to make tended the comment period in response to an important announcement. requests. The term of the Federal Reserve Board Chairman expires August 5th. I have today asked Chairman Paul The Federal Reserve Board has also requested Volcker to accept reappointment for another term. comment on proposals to find that certain provi- He's agreed to do so, and I couldn't be more pleased. sions in the state laws of New Hampshire and Paul Volcker is a man of unquestioned independence, New Jersey governing the offering of cash disintegrity, and ability. He is as dedicated as I am to counts in the sale of motor fuel are not inconsiscontinuing the fight against inflation. And with him as Chairman of the Fed, I know we'll win that fight. End tent with the Truth in Lending Act nor with of news flash. . . . Regulation Z and should not be preempted. In addition, the Board asked for comment oh its view that these laws are of a type not subject to REVISIONS OF REGULATIONS G AND U the Board's authority to preempt state laws under Truth in Lending. The Board requested The Federal Reserve Board has completed revi- comment by October 7, 1983. sions of its Regulation G (Securities Credit by Persons Other than Banks, Brokers, or Dealers) and Regulation U (Credit by Banks for the Pur- DEDICATION OF HEADQUARTERS BUILDING pose of Purchasing or Carrying Margin Stocks). The revised regulations became effective August The headquarters building of the Federal Re- 31, 1983. serve Board was dedicated on July 29, 1983, to The revisions of the two margin regulations the memory of Marriner S. Eccles, who was were made as part of the Board's regulatory chairman of the Board from 1934 to 1948 and improvement program under which the Board is oversaw the modernization of the Federal Rereviewing all of its regulations to simplify them, serve System under the Banking Act of 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin • August 1983 The building dedicated to Mr. Eccles was NEW PUBLICATION completed in 1937, under his direction, and was opened for business by President Franklin D. The Federal Reserve Board has published a Roosevelt on October 20, 1937. Mr. Roosevelt report, "Credit Cards in the U.S. Economy: called it "worthy to rank among the foremost of Their Impact on Costs, Prices, and Retail the Capital's architectural achievements. . . ." Sales." The study examines the impact of credit It has since been designated a national landmark. cards on the costs that merchants and creditors The building had not previously had a formal incur, on the pricing of goods sold by retailers, name. The Garn-St Germain Depository Institu- and on the volume of retail sales. The report was tions Act of 1982 called for it to be named in prepared in response to a congressional request honor of Marriner S. Eccles. The building con- for information on the economic impact of credit tains the offices of the seven members of the cards in order to evaluate the Cash Discount Act Federal Reserve Board and part of their staff. of 1981, which encouraged the offering of price discounts for payment by cash. There is no charge for the report, and it is available on COMPARISON CHART request from Publications Services, Mail Stop FOR OLD AND NEW REGULATION T 138, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. To facilitate understanding of the Federal Reserve Board's newly revised Regulation T (Credit by Brokers and Dealers), the Board has made CHANGES IN BOARD STAFF public a comparison chart of section numbers of the old and the new regulation. Lorin S. Meeder, Associate Director, Division of The new regulation becomes effective Novem- Federal Reserve Bank Operations, resigned from ber 21, 1983, or earlier for those wishing to use it the Board, effective July 1, 1983. before that date. The Board has also announced the resignation of William R. Maloni, Special Assistant to the ERRATUM Board, effective August 12, 1983. The following table, is being reprinted, with corrections, because of a printer's error that REVISED EDITION obliterated some of the data entries when it OF THE FEDERAL RESERVE ACT appeared in "New Federal Reserve Measures of Capacity and Capacity Utilization" in the July The Board of Governors has published a reprint 1983 issue of the BULLETIN, page 516. of the Federal Reserve Act and related statutes 1. Capacity utilization, June 1983 and at selected peaks and troughs Capacity utilization rate VVaalluuee-- IInndduussttrryy aaddddeedd pprrooppoorrttiioonn May March March July November June 1973 1975 1979 1981 1982 1983 Total industry1 100.00 88.4 71.1 87.3 81.7 69.6 74.5 Manufacturing 87.95 87.9 69.0 87.5 80.9 68.8 74.4 Mining 6.36 89.1 88.5 84.6 91.1 70.8 68.4 Utilities 5.69 93.4 85.9 86.3 85.3 80.4 81.0 Industrial materials2 91.9 69.3 88.7 82.7 67.0 74.2 1. Capacity utilization for total industry is obtained by aggregating many of the items included in the primary processing grouping of the output and capacity indexes for manufacturing, mining, and manufacturing, as well as some of the output of the advanced utilities, weighted by value added. processing industries, mines, and utilities—such as iron ore, crude oil, 2. Industrial materials are items produced and used as inputs by semiconductors, and electricity sold to industry. manufacturing plants, mines, and utilities. Industrial materials include Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 625 that includes legislation enacted through April Florida 20, 1983. Orlando Independent Banker's Bank The reprint of the act is available at a cost of of Florida $7.00 a copy from Publications Services, Mail Miami Orange State Bank Stop 138, Board of Governors of the Federal Indiana Reserve System, Washington, D.C. 20551. South Bend 1st Source Bank Montana Forsyth Montana Bank of Forsyth SYSTEM MEMBERSHIP: Texas ADMISSION OF STATE BANKS Piano Texas Bank of Piano The following banks were admitted to membership in the Federal Reserve System during the period July 8 through August 10, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Record of Policy Actions of the Federal Open Market Committee Meeting Held on May 24, 1983 percent in April, about the same as in March. Outlays at apparel and furniture and appliance Domestic Policy Directive stores were brisk, but a major factor in the April gain was increased spending on new cars. Sales The information reviewed at this meeting sug- of new domestic automobiles, which had held at gested that growth in real GNP would accelerate, an annual rate of slightly over 6 million units perhaps rather substantially, in the current quar- since November, rose to a rate of 6.4 million ter, after an increase at an annual rate of about units in April and strengthened somewhat further 2VI percent in the first quarter. To a considerable in early May. extent, the expected pickup in growth reflected Total private housing starts declined somean apparently marked further slowing in the rate what in both March and April, but at an annual of inventory liquidation, with an ending of liqui- rate of 1.5 million units in April, they were still dation possible during the quarter. At the same about 40 percent above the depressed 1982 avertime final demands for goods and services, which age. Newly issued permits for residential conhad strengthened in late 1982, were being rela- struction picked up in April, reflecting a marked tively well maintained. The rise in average increase in permits for multifamily units. Sales of prices, as measured by the fixed-weight price new and existing homes increased substantially index for gross domestic business product, ap- in the first quarter of 1983. peared to be continuing at about the moderate The producer price index for finished goods pace recorded over the past year. edged down in both March and April; prices of The index of industrial production rose 2.1 energy-related items, which are lagged one percent in April, the largest monthly increase month in this index, declined considerably fursince the summer of 1975, to a level about 6 ther while prices of consumer foods increased. percent above its recent trough in November. The consumer price index rose 0.6 percent in Gains in output were spread across a broad range April, after having edged up 0.1 percent in of industries, and were particularly strong for March; more than one-third of the April increase consumer durable goods and durable goods ma- reflected the rise in gasoline prices associated terials. Production of business equipment, which with implementation of the higher federal excise had contracted sharply since late 1981, also rose tax. Thus far in 1983 the consumer price index substantially in April after turning up in March. has increased little, and the index of average Rates of capacity utilization in manufacturing hourly earnings has risen at a considerably slowand at materials producers increased from record er pace than in 1982. lows late in 1982 to around 71 percent in April. Since late March the trade-weighted value of Nonfarm payroll employment increased more the dollar in foreign exchange markets had rethan 250,000 in April, after an increase of about mained in a narrow range near its recent high 200,000 in March. Employment gains in manu- level. The U.S. foreign trade deficit in the first facturing and service industries accounted for quarter was about one-third less than in the the bulk of the rise in both months. The civilian preceding quarter, as oil imports dropped sharpunemployment rate edged down further to 10.2 ly, reflecting a decline in price and a considerable percent in April. reduction in volume. The dollar value of retail sales advanced 1.6 At its meeting on March 28-29, 1983, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

627 Committee had decided that open market opera- tors appeared to have continued in April at about tions in the period until this meeting should be the same pace as in the first quarter. Over the directed at maintaining generally the existing first four months of the year, debt expansion was degree of restraint on reserve positions, antici- estimated at an annual rate of about W2 percent, pating that such a policy would be consistent well within the Committee's range of 8V2 to IIV2 with a slowing from March to June in growth of percent for the year. Funds raised by the U.S. M2 and M3 to annual rates of about 9 and 8 Treasury grew at about twice the rate of total percent respectively. The Committee expected debt expansion, while private debt rose at a that growth in Ml at an annual rate of about 6 to moderate pace. Growth in total credit outstand- 7 percent over the three-month period would be ing at U.S. commercial banks slowed somewhat associated with its objectives for the broader in April, as banks continued to acquire sizable aggregates. The Committee members agreed that amounts of Treasury securities but reduced sublesser restraint on reserve positions would be stantially their holdings of business loans. acceptable in the context of more pronounced Growth in total and nonborrowed reserves slowing in the growth of the monetary aggregates slowed appreciably in April and early May, as (after taking account of any distortions relating weakness in transaction deposits over much of to the introduction of new deposit accounts) or of March and in April was reflected with a lag in evidence of a weakening in the pace of economic reduced demand for required reserves. Apart recovery. If monetary expansion proved to be from large borrowings around the end-of-quarter appreciably higher than expected, without being statement date early in the intermeeting period, clearly explained by the effects of ongoing insti- adjustment borrowing from the Federal Reserve tutional changes, it was understood that the discount window, including seasonal borrowing, Committee would consult about the desirability fluctuated within a range of about $200 million to under the prevailing circumstances of any sub- $675 million. Special factors, such as relatively stantial further restraint on bank reserve posi- sizable weekend borrowing associated with wire tions. The intermeeting range for the federal transfer problems, contributed at times to infunds rate was retained at 6 to 10 percent. creased demands for borrowing. Excess reserves Growth in M2, which had slowed to an annual also continued to be volatile and were relatively rate of about 11 percent in March, decelerated high on average. Federal funds generally traded further in April to an annual rate of about 3 in a range of 8V2 to S3A percent during the percent. The deceleration reflected, in part, sub- intermeeting interval. stantial shifts of funds into individual retirement Market interest rates changed little on balance and Keogh accounts before the April 15 tax date. over the intermeeting interval. Short-term inter- Growth in M3 slowed to an annual rate of about est rates declined about XA percentage point while 4V2 percent, after expanding at an SlA percent most long-term rates were slightly lower or up pace in March. Partial data suggested that expan- only marginally. Market rates had fallen considsion in both M2 and M3 had picked up in early erably in the early part of the period but had risen May, but growth to date still appeared to be again most recently, as growth in the monetary below the annual rates of 9 and 8 percent respec- aggregates seemed to be strengthening, signs of tively expected by the Committee for the period economic recovery became more widespread, from March to June. and prospects increased that private credit de- Ml declined at an annual rate of about 3 mands would strengthen while Treasury borrowpercent in April but, according to preliminary ing remained exceptionally large. Average rates data, strengthened markedly in early May. Thus on new commitments for fixed-rate conventional far in the second quarter, growth in Ml appeared home mortgage loans at savings and loan associto be running substantially above the annual rate ations fell about 30 basis points further. of 6 to 7 percent deemed consistent with the The staff projections presented at this meeting Committee's expectations for the broader aggre- indicated that growth in real GNP in the second gates. half of the year would be a little higher than had Growth in debt of domestic nonfinancial sec- been expected, though probably slowing some- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • August 1983 what from the second-quarter pace. Recent evi- housing activity could be less strong than was dence, including increased spending for business widely anticipated and another observed that equipment, strength in new orders at durable consumer spending could prove to be disappointgoods manufacturers, and survey reports of ing, particularly if consumers did not react more marked improvement in consumer attitudes, sug- positively to the approaching tax cut than they gested somewhat stronger private final demands had to the 1982 reduction. Another member from businesses and consumers than had been commented that recent indications of a more anticipated previously. The unemployment rate vigorous recovery might reflect mainly a shortwas projected to decline only modestly from its lived inventory adjustment. recent high level, and the rise in the average level Other members expressed a differing view and of prices was expected to remain moderate. emphasized that the prospects for an extended In the Committee's discussion of the economic recovery were relatively favorable. In support of situation and outlook, a number of members this view it was observed that substantial imexpressed general agreement with the staff pro- provements in consumer spending and inventory jection, but several emphasized that economic investment were likely to be followed by increasactivity might well prove to be stronger than ing capital investment, in the pattern characterisprojected, especially during the quarters immedi- tic of earlier cyclical expansions. In this connecately ahead. Members observed that consumer tion some members stressed that the expansion sentiment appeared to have improved considera- might well gather momentum and prove to be bly, and that retail sales should benefit from the much stronger than the staff was projecting, increased market value of financial asset portfo- partly because the recovery would follow a relalios as well as from the federal tax cut at mid- tively long and severe recession. year. A turnaround from sharp inventory liquida- At this meeting the Committee reviewed the tion to little change, or possibly even some monetary growth ranges that it had established in accumulation, was seen as likely and would have February for the year 1983. It decided not to a pronounced positive impact on GNP and on change any of the ranges or the relative imporincome flows, at least for a quarter or two. tance of the various aggregates for policy, pend- Members also commented that an increasingly ing a further review at the July meeting. Growth stimulative fiscal policy would add strength to of the broader aggregates appeared to be within the recovery over the period ahead, and an the Committee's ranges for the year. Earlier in unduly large federal deficit was likely to create the year, growth of M2 had been affected to a problems later as private credit demands expand- major extent by large shifts of funds associated ed. with the introduction of money market deposit While all Committee members anticipated con- accounts; such shifts had slackened substantialtinuing and possibly substantial improvement in ly, although MMDAs were still expanding at a economic activity over the months ahead, a somewhat faster rate than the staff had projected number also questioned the balance and sustain- earlier. Ml had grown substantially in excess of ability of the recovery. They noted that, though the Committee's expectations in the latter part of business capital spending was showing signs of 1982 and the first quarter of 1983. Staff analysis reviving, it would need to improve markedly based on recent research suggested that this further to foster an extended recovery. Such earlier growth reflected to a substantial extent spending could be inhibited if a continuing need lagged responses to the decline in interest rates to finance large federal deficits engendered rising that began during the summer of 1982. That interest rates as the recovery proceeded. The decline had enhanced the attractiveness of NOW outlook for exports was also thought to be rela- accounts, which serve as a vehicle for savings as tively weak, although exports should eventually well as for transactions. The performance of Ml improve if the foreign exchange value of the would continue to be affected by substantial dollar were to decline substantially and if major uncertainties relating to the interest and income disturbances in international financial markets sensitivity of fixed-ceiling NOW accounts and were averted. One member commented that also by the growing importance in Ml of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 629 more recently introduced Super NOW accounts, of the second-quarter targets that the Committee which bear a market-related rate of interest. had set at the previous meeting. Expansion in While the effects of earlier declines in interest total domestic nonfinancial debt also appeared to rates should now be diminishing, given the rela- be within the range for 1983 that the Committee tive stability of rates over recent months, some had established for monitoring purposes. Ml time would be needed to evaluate the evolving clearly was growing at a pace well above the role of Ml as a vehicle for savings. Committee's expectations, but many members Turning to policy for the short run, the mem- continued to view that aggregate as an unreliable bers noted a staff analysis, which suggested that guide for policy and they preferred to give little maintenance of the existing degree of restraint on or no weight to its performance, at least for the reserve positions might be associated with sec- present. ond-quarter growth of M2 and M3 marginally A number of members were also concerned below the rates established by the Committee at that under current circumstances even a modest the previous meeting, but with expansion of Ml tightening of reserve conditions might have a above the level anticipated by the Committee, disproportionate impact on sentiment in domesgiven the surge in Ml growth during the first part tic and international financial markets and lead to of May. The staff analysis also indicated that, sizable increases in domestic interest rates. In within limits, alternative policy courses would their view increases in interest rates would have have relatively little impact on the second-quar- adverse consequences for interest-sensitive secter growth of the monetary aggregates in light of tors of the economy and possibly for the sustainthe limited time remaining in the quarter, but ability of the economic recovery. Indeed, one would affect their growth more substantially over member believed that lower interest rates were the months ahead. likely to be needed to ensure continued econom- In the course of their discussion, Committee ic expansion. Moreover, appreciably higher U.S. members expressed differing views with regard interest rates might have particularly damaging to the appropriate course for policy in the weeks consequences internationally by raising the forimmediately ahead. The members were narrowly eign exchange value of the dollar and intensifying divided between those who favored some in- the severe pressures on countries with serious crease in reserve restraint over the next few external debt problems. weeks and others who preferred to maintain the Other Committee members, however, weighed degree of reserve restraint contemplated at the the risks associated with alternative policy March meeting. This divergence reflected vary- courses differently. They felt that at least limited ing assessments of the strength and sustainability tightening of reserve conditions was desirable in of the economic recovery; differing views with light of the very rapid growth in Ml against the regard to the interpretation of the monetary background of accumulating evidence that the aggregates; and different opinions concerning the economic recovery was accelerating. While, risks associated with the likely impact of alterna- consistent with previous decisions, Ml was not tive policy courses on domestic interest rates. given so much weight as a monetary policy target Members also noted the potential sensitivity of as it had had earlier, a number of members international financial conditions and the foreign nonetheless saw a need to move toward restrainexchange value of the dollar to firmer credit ing its growth, which clearly was running well conditions in the United States, suggesting for above the pace for the second quarter that the some a dilemma for monetary policy stemming in Committee had expected would be consistent substantial part from the budgetary situation. with the behavior of the broader aggregates. Members who supported retention of the cur- Several members commented that slightly rent short-run policy emphasized that the growth greater restraint on reserves would be desirable of the broader monetary aggregates, on which at this point to minimize the possible need for the Committee had focused, was within the Com- more substantial restraint later, reducing the mittee's 1983 ranges for the year to date. More- interest rate impact on financial markets over over, such growth seemed to be falling a bit short time and helping to sustain the expansion. Refer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin • August 1983 ence was made to the favorable effect such a April after rising at a moderate pace in previous move might have on market perceptions about months; nonfarm payroll employment and retail sales rose considerably in March and April. Housing starts monetary policy and the outlook for containing declined somewhat in both months but were still well inflation, with the consequence that prospects above depressed 1982 levels. Data on new orders and for stable or declining interest rates in long-term shipments suggest that the demand for business equipdebt markets would be enhanced as the recovery ment is reviving. The civilian unemployment rate proceeded. The view was also expressed that the edged down to 10.2 percent in April. Average prices have changed little and the index of average hourly external debt difficulties of a number of foreign earnings has risen at a much reduced pace in the early countries were continuing problems. The Federmonths of 1983. al Reserve could best contribute to the resolution The weighted average value of the dollar against of those problems by following policies that major foreign currencies has remained in a narrow would foster sustained, noninflationary econom- range near its recent high level since late March. The ic growth. Deferring any action could well pose a U.S. foreign trade deficit fell substantially in the first quarter, reflecting a sharp drop in the value of oil greater dilemma at a later time. imports. At the conclusion of the Committee's discus- Growth in M2 and M3 decelerated further in April to sion, a majority of the members indicated that relatively low rates but appears to have picked up they favored marginally more restraint on re- recently. Ml declined in April but has strengthened markedly in early May. Growth in debt of domestic serve positions for the near term. Although these nonfinancial sectors appears to have been moderate members differed on the precise degree of addiover the first four months of the year. Interest rates tional restraint that they preferred, they indicat- have changed little on balance since late March. ed their acceptance of a directive calling for only The Federal Open Market Committee seeks to fosslightly more restraint on reserve positions than ter monetary and financial conditions that will help to had been approved at the previous meeting. It reduce inflation further, promote a resumption of growth in output on a sustainable basis, and contribute was understood that at this point M2 and M3 to a sustainable pattern of international transactions. seemed to be on courses that would bring their At its meeting in February the Committee established growth to slightly below the rates of 9 and 8 growth ranges for monetary and credit aggregates for percent respectively that had been set at the 1983 in furtherance of these objectives. The Commit- March meeting for the second quarter, but that tee recognized that the relationships between such ranges and ultimate economic goals have been less Ml would probably expand at a rate well above predictable over the past year; that the impact of new the growth that had been anticipated for the deposit accounts on growth ranges of monetary aggrequarter. The members agreed that lesser re- gates cannot be determined with a high degree of straint would be appropriate in the context of confidence; and that the availability of interest on more pronounced slowing in the growth of the large portions of transaction accounts, declining inflation, and lower market rates of interest may be reflectbroader monetary aggregates within their 1983 ed in some changes in the historical trends in velocity. ranges and deceleration of Ml growth, or of A substantial shift of funds into M2 from market indications that the pace of the economic recov- instruments, including large certificates of deposit not ery was weakening. It was understood that the included in M2, in association with the extraordinarily intermeeting range for the federal funds rate, rapid buildup of money market deposit accounts, distorted growth in that aggregate during the first which provides a mechanism for initiating conquarter. sultation of the Committee, would remain at 6 to In establishing growth ranges for the aggregates for 10 percent. 1983 against this background, the Committee felt that At the conclusion of its discussion, the Com- growth in M2 might be more appropriately measured after the period of highly aggressive marketing of mittee issued the following domestic policy dimoney market deposit accounts had subsided. The rective to the Federal Reserve Bank of New Committee also felt that a somewhat wider range was York: appropriate for monitoring Ml. Those growth ranges were to be reviewed in the spring and altered, if appropriate, in the light of evidence at that time. The The information reviewed at this meeting suggests Committee reviewed the ranges at this meeting and decided not to change them at this time, pending that growth in real GNP has accelerated in the current further review at the July meeting. With these underquarter following a moderate increase in the first standings, the Committee established the following quarter. Industrial production increased sharply in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 631 growth ranges: for the period from February-March of they wanted open market operations to continue 1983 to the fourth quarter of 1983, 7 to 10 percent at an being directed toward maintaining approximately annual rate for M2, taking into account the probability the degree of reserve restraint approved at the of some residual shifting into that aggregate from nonprevious meeting. In the view of these members, M2 sources ; and for the period from the fourth quarter of 1982 to the fourth quarter of 1983, 6V2 to 9'A percent a firming of reserve conditions was not warrantfor M3, which appeared to be less distorted by the new ed by the performance of the monetary aggreaccounts. For the same period a tentative range of 4 to gates or by the current economic situation. M2 8 percent was established for Ml, assuming that Super and M3 were expanding more slowly in the NOW accounts would draw only modest amounts of second quarter than the Committee had anticifunds from sources outside Ml and assuming that the authority to pay interest on transaction balances was pated at its previous meeting and for the year to not extended beyond presently eligible accounts. An date these broader aggregates, along with total associated range of growth for total domestic nonfi- domestic nonfinancial credit, were growing at nancial debt was estimated at 8I/2 to IV/2 percent. rates that were within the Committee's 1983 In implementing monetary policy, the Committee ranges. Ml had been expanding at a pace markagreed that substantial weight would continue to be edly in excess of the Committee's expectations placed on behavior of the broader monetary aggregates expecting that distortions in M2 from the initial in recent weeks and for the year to date, but this adjustment to the new deposit accounts will abate. The aggregate was not viewed as a sufficiently relibehavior of Ml will continue to be monitored, with the able guide for policy, at least for the present, degree of weight placed on that aggregate over time since its performance was substantially distorted dependent on evidence that velocity characteristics by various developments and it was not predictare resuming more predictable patterns. Debt expansion, while not directly targeted, will be evaluated in ably related to nominal GNP. judging responses to the monetary aggregates. The Under current economic and financial circum- Committee understood that policy implementation stances, the implementation of firmer reserve would involve continuing appraisal of the relationships between the various measures of money and credit and conditions would also incur an undue risk of an nominal GNP, including evaluation of conditions in exaggerated reaction in domestic and internadomestic credit and foreign exchange markets. tional financial markets. Substantially higher do- The Committee seeks in the short run to increase mestic interest rates would have damaging cononly slightly the degree of reserve restraint. The action sequences for interest-sensitive industries and was taken against the background of M2 and M3 could limit the recovery in economic activity. remaining slightly below the rates of growth of 9 and 8 percent, respectively, established earlier for the quar- These members agreed that current interest rate ter and within their long-term ranges, Ml growing well levels appeared to be more consistent with conabove anticipated levels for some time, and evidence tinuing economic expansion in the months immeof some acceleration in the rate of business recovery. diately ahead, but Mrs. Teeters believed that Lesser restraint would be appropriate in the context of lower interest rates might well be needed later to more pronounced slowing of growth in the broader monetary aggregates relative to the paths implied by sustain the recovery. the long-term ranges and deceleration of Ml, or indica- These members also referred to the potentially tions of a weakening in the pace of economic recovery. disruptive international impact of rising U.S. The Chairman may call for Committee consultation if interest rates. Messrs. Solomon, Guffey, and it appears to the Manager for Domestic Operations Morris in particular believed that the already that pursuit of the monetary objectives and related reserve paths during the period before the next meet- strong dollar in foreign exchange markets, the ing is likely to be associated with a federal funds rate tenuous situation of some of the developing persistently outside a range of 6 to 10 percent. countries, the still fragile economic recovery in other industrial countries, and the continuing Votes for this action: Messrs. Volcker, Gramley, weak outlook for U.S. exports counseled against Keehn, Martin, Partee, Roberts, and Wallich. an increase in reserve restraint. Votes against this action: Messrs. Solomon, Guf- On June 23 the Committee held a telephone fey, Morris, Rice, and Mrs. Teeters. conference to review recent developments in the domestic and international economy and finan- Messrs. Solomon, Guffey, Morris, Rice, and cial markets since the May 24 meeting. Evidence Mrs. Teeters dissented from this action because suggested that economic activity was continuing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin • August 1983 to strengthen at a somewhat more rapid pace Against that background, the consensus was than had generally been anticipated earlier. that a modest increase in reserve restraint, with- Some interest rates had increased modestly in in the framework of the directive adopted at the recent weeks. Growth in monetary aggregates, May 24 meeting and consistent with recent reparticularly Ml, had been relatively rapid al- serve conditions, remained appropriate. though growth in M2 and M3 remained close to the targets established for the quarter as a whole. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

633 Legal Developments AMENDMENT TO RULES REGARDING (vi) the nonbanking activities involved do not DELEGATION OF AUTHORITY clearly fall within activities that the Board has designated as permissible for bank holding com- The Board of Governors has amended its Rules Re- panies under § 225.4(a) of Regulation Y; or garding Delegation of Authority to permit Federal (vii) the proposal would involve the acquisition by Reserve Banks to approve applications under sections a banking organization that has total domestic 3 and 4 unless the transaction involves two banking banking assets of $1 billion or more of a nonbankorganizations each with assets over $100 million in ing organization that appears to have a significant deposits and after consummation, the acquiring orga- presence in a permissible nonbanking activity.2 nization would control over 10 percent of market deposits. Effective date: This amendment is effective on all Effective July 20, 1983, the Board amends Rules applications pending on July 20, 1983, and on all future Regarding Delegation of Authority as set forth below: applications. Part 265—Rules Regarding Delegation of BANK HOLDING COMPANY AND BANK MERGER Authority ORDERS ISSUED BY THE BOARD OF GOVERNORS Section 265.2—Specific Functions Delegated to Orders Under Section 3 of Bank Holding Board Employees and to Federal Reserve Company Act Banks First American Bancshares Limited ^ *** Partnership, (22) *** North Little Rock, Arkansas (i) a member of the Board has indicated an objection prior to the Reserve Bank's action; or Order Approving Formation of a Bank Holding (ii) the Board has indicated that such delegated Company authority shall not be exercised by the Reserve Bank in whole or in part; or First American Bancshares Limited Partnership, (iii) a written substantive objection to the applica- North Little Rock, Arkansas, has applied for the tion has been properly made; or Board's approval under section 3(a)(1) of the Bank (iv) the application raises a significant policy issue Holding Company Act (12 U.S.C. § 1842(a)(1)) to or legal question on which the Board has not become a bank holding company by acquiring at least established its position; or in formations, bank 80 percent of the voting shares of First American acquisitions or mergers: Bank/Little Rock, National Association, Little Rock, (v) the proposed transaction involves two or more Arkansas, ("National Association Bank")1 and by banking organizations: merging with First American National Bancshares, (a) that rank among a State's ten largest banking organizations in terms of total domestic banking 2. While other situations may involve the issue of significant presence, the Board regards, as a general guideline, any company that assets; or ranks among the 20 largest independent firms in any industry as (b) each of which has more than $100 million of having a significant presence. total deposits in banking offices in the same local banking market that, after consummation 1. National Association Bank is currently operating as a savings of the proposal, would control over 10 percent and loan association under the name Arkansas Federal Savings and of total deposits in banking offices in that local Loan Association. Applicant has received preliminary approval from the Comptroller of the Currency to convert the savings and loan market; or association to a national bank. The conversion will occur before the in nonbank acquisitions: acquisition by Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin • August 1983 Inc., and thereby indirectly acquiring First American deposits in commercial banks in the market.8 As of National Bank, North Little Rock, Arkansas ("First March 31, 1981, National Association Bank held total American Bank"). deposits of $36.2 million and when it becomes a Applicant, a nonoperating limited partnership, was commercial bank, it will control approximately 1.6 organized for the purpose of becoming a bank holding percent of the deposits of commercial banks in the company by acquiring First American Bank, which market. Upon consummation, Applicant would remain holds total deposits of $129.0 million.2 Applicant also as the sixth largest commercial banking organization in proposes to acquire National Association Bank, which the market and would control 7.4 percent of the holds total deposits of $36.2 million as of March 31, market's deposits. 1981. Upon acquisition of First American Bank and As part of its analysis of the competitive effects of a National Association Bank, both of which are con- proposal such as this, the Board considers the compettrolled by the same group of persons, Applicant would itive effects of the transaction whereby common share control the 11th largest banking organization in Arkan- ownership was established between banks in the same sas and would hold approximately 1.46 percent of the market. Applicant's principals gained control of Artotal deposits of commercial banks in the state. kansas Federal Savings and Loan ("AFSL") in 1960 The Board's authority to approve the formation of a and acquired control of First American Bank in 1981. bank holding company only extends to those proposals Because AFSL could not offer many of the types of that do not violate state law.3 Until September 30, commercial banking services that First American 1983, Arkansas law generally prohibits a bank holding Bank could offer, the acquisition of First American company from owning or controlling directly or indi- Bank by Applicant's principals would not have resultrectly more than 25 percent of the voting shares of ed in the elimination of significant existing competition more than one bank.4 The prohibition against bank between the two institutions at the time of the acquisiholding companies controlling more than one bank tion. In addition, the Little Rock market is not highly does not apply to Applicant, however. Under Arkan- concentrated, with the four largest commercial banksas law, a bank holding company is a company that ing organizations in the market controlling approxiindirectly or directly holds or controls 25 percent of mately 68 percent of the market. In light of these and the shares of a bank.5 Unlike the federal Bank Holding other factors, the Board concludes that Applicant's Company Act, which includes partnerships in the acquisition of First American Bank in 1981 did not definition of "company,"6 the Arkansas law defines eliminate a significant amount of existing competition. "company" as a corporation or a business trust doing The rechartering of AFSL will allow that institution to business in the state.7 Accordingly, because Applicant offer full banking services and will add another comis a limited partnership, it is not a "company" for petitor to the market. Accordingly, the Board conpurposes of the Arkansas bank holding company stat- cludes that competitive considerations are consistent ute. This reading of the law is consistent with the with approval. views of the Arkansas Attorney General, who, by The financial and managerial resources and future letter dated December 17, 1982, stated that under prospects of Applicant and its subsidiaries are satisfac- Arkansas law, limited partnerships are not prohibited tory and their future prospect appears favorable. As a from owning or controlling two banks. Accordingly, result of consummation of this proposal, National because the federal BHC Act does not prohibit multi- Association Bank's financial resources will be bank holding companies, approval of this proposal is strengthened, particularly in light of Applicant's compermissible under federal and state law. mitment to provide National Association Bank with Applicant's principals currently control First Ameri- additional capital. Accordingly, considerations relatcan Bank and National Association Bank. First Ameri- ing to banking factors are consistent with approval. can Bank is the sixth largest of fifteen commercial While Applicant does not propose to alter the services banking organizations in the Little Rock banking mar- offered by First American Bank or National Associaket and holds approximately 5.8 percent of the total tion Bank, considerations relating to the convenience and needs of the community to be served are also consistent with approval. Accordingly, the Board has determined that consummation of the transaction would be consistent with the public interest and that the application should be approved. 2. Deposit data are as of December 31, 1982. 3. Whitney National Bank in Jeffersen Parish v. Bank of New Orleans & Trust Company, 379 U.S. 411 (1965). 4. Ark. Stat. Ann. § 67-2103(1) (1980). 5. Ark. Stat. Ann. § 67-2102(A)(l) (1980). 6. 12 U.S.C. § 1841(b). 8. The Little Rock banking market is approximated by Saline and 7. Ark. Stat. Ann. § 67-2102(C) (1980). Pulaski and the northern portion of Lonoke County in Arkansas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 635 On the basis of the record, the application is ap- Bank is the 300th largest commerical bank in the proved for the reasons summarized above. The trans- Chicago banking market,2 controlling approximately action shall not be made before the thirtieth calendar 0.03 percent of the total deposits of commercial banks day following the effective date of this Order, or later in the market. Applicant also operates in the Chicago than three months after the effective date of this banking market and is the 53rd largest banking organi- Order, unless such period is extended for good cause zation, with approximately 0.22 percent of the total by the Board, or by the Federal Reserve Bank of St. deposits in commercial banks in the market. Unon Louis, pursuant to delegated authority. consummation, Applicant would become the 42nd By order of the Board of Governors, effective largest commercial banking organization in the market July 8, 1983. with 0.25 percent of the market's deposits. While consummation of the proposal would eliminate some Voting for this action: Vice Chairman Martin and Gover- existing competition between Applicant and Bank, the nors Partee, Teeters, and Gramley. Absent and not voting: Board does not regard the amount of existing competi- Chairman Volcker and Governors Wallich and Rice. tion eliminated as so significant as to warrant denial of the application. Accordingly, the Board concludes that JAMES MCAFEE, consummation of the proposal would not have a [SEAL] Associate Secretary of the Board significant adverse effect upon existing competition and thus, the competitive considerations are consistent with approval. Suburban Bancorp, Inc., The financial resources and future prospects of Palatine, Illinois Applicant, its subsidiaries, and Bank are considered generally satisfactory and their future prospects ap- Order Approving Acquisition of a Bank pear favorable. Applicant proposes to purchase Bank for approximately $2.7 million from existing re- Suburban Bancorp, Inc., Palatine, Illinois, a bank sources. With regard to management resources, the holding company within the meaning of the Bank record indicates that Applicant's chairman and princi- Holding Company Act, has applied for the Board's pal shareholder bought 80 percent of Bank's stock in approval under section 3(a)(3) of the Act (12 U.S.C. 1982. At that time, Applicant agreed to purchase the § 1842(a)(3)) to acquire Suburban Bank of Barrington, stock from its principal shareholder and agreed to Barrington, Illinois. indemnify him in full "against any and all losses, Notice of the application, affording an opportunity interest costs, or other expenses of whatever nature for interested persons to submit comments, has been may arise, be charged, or incurred" regardless of given in accordance with section 3(b) of the Act. The whether Applicant acquired Bank from the principal time for filing comments has expired and the Board shareholder. The purchase agreement also states that has considered the application and all comments re- the principal shareholder would not have purchased ceived in light of the factors set forth in section 3(c) of Bank's stock but for Applicant's agreement to purthe Act (12 U.S.C. § 1842(c)). chase the stock from him and indemnify him against Applicant, currently the 53rd largest banking organi- loss. zation in Illinois, controls seven banks with aggregate The Board has previously determined that similar deposits of approximately $165.8 million, representing indemnification agreements between a bank holding 0.19 percent of total deposits in commercial banks in company and an individual purchasing bank stock the state.1 Bank is the 729th largest commercial bank offer the potential for shifting the economic risk of loss in Illinois, with deposits of $19.9 million, representing to the bank holding company and constitute control of approximately 0.02 percent of total deposits of com- the bank stock by a bank holding company within the mercial banks in the state. Upon consummation of this meaning of section 2 of the Act. (See e.g., Florida proposal, Applicant would become the 45th largest National Banks of Florida, Inc., 62 FEDERAL RESERVE commercial banking organization in the state. The BULLETIN 696 (1976); The Jacobus Co. & Inland Board concludes that Applicant's acquisition of Bank Financial Corp., 60 FEDERAL RESERVE BULLETIN 130 would have no appreciable effect upon the concentra- (1974); Mid America Bancorporation, 60 FEDERAL tion of banking resources in Illinois. RESERVE BULLETIN 131 (1974)). Based upon the facts 2. The Chicago banking market is defined as Cook, DuPage and 1. Banking data are as of June 30, 1982. Lake Counties in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin • August 1983 of this case and in accordance with its previous The time for filing comments and views has expired, decisions, the Board believes that Applicant acquired and the Board has considered the application and all Bank's stock without the Board's prior approval. comments received in light of the factors set forth in In order to address the Board's concerns regarding section 3(c) of the Act. its indemnification agreement and other actions with Applicant is a nonoperating Texas corporation orgarespect to the control of Bank's stock, Applicant has nized for the purpose of becoming a bank holding rescinded the indemnification agreement and has com- company by acquiring Bank, which holds deposits of mitted to adopt a definite program to ensure that such $51.1 million.1 Upon acquisition of Bank, Applicant acts do not occur in the future. In light of these would control the 221st largest commercial banking actions, the Board concludes that the managerial re- organization in Texas and approximately 0.04 percent sources of Applicant, its subsidiaries and Bank are of total deposits in commercial banks in the state. consistent with approval. Accordingly, considerations This proposal involves a restructuring of Bank's relating to banking factors are consistent with approv- ownership from individuals to a corporation owned by al of the application. the same individuals. Applicant's principals, who own While Applicant does not propose to alter the serv- 57 percent of Bank's outstanding shares, also control ices offered by Bank, considerations relating to the about 60 percent of the outstanding voting shares of convenience and needs of the community to be served the First State Bank, Rusk, Texas ("Rusk Bank"), are also consistent with approval. Accordingly, the located 13 miles south of Bank in the town of Rusk, Board has determined that consummation of the trans- Texas, the county seat of Cherokee County.2 action would be consistent with the public interest and Bank is currently the second largest banking organithat the application should be approved. zation in Cherokee County, with total deposits of On the basis of the record, the application is ap- $51.1 million, representing 29.5 percent of the total proved for the reasons summarized above. The trans- deposits in commercial banks in the market. Rusk action shall not be consummated before the thirtieth Bank is the fourth largest commercial bank in the calendar day following the effective date of this Order market, with a 12.5 percent market share and total or later than three months after the effective date of deposits of $21.7 million. Bank and Rusk Bank togeththis Order, unless such period is extended for good er hold $72.8 million in deposits, representing 42 cause by the Board or by the Federal Reserve Bank of percent of deposits in commercial banks in the market. Chicago acting pursuant to delegated authority. Applicant contends that Bank and Rusk Bank do not By order of the Board of Governors, effective compete in the same banking market. The relevant July 15, 1983. banking market definition proposed by Applicant asserts that Bank is located in a market approximated by Voting for this action: Chairman Volcker and Governors the northern half of Cherokee County, including the Martin, Wallich, Partee, Teeters, Rice, and Gramley. town of Jacksonville. In support of its contention, Applicant has submitted data concerning the respec- JAMES MCAFEE, tive service areas of deposits of Bank and Rusk Bank.3 [SEAL] Associate Secretary of the Board Bank is located in Jacksonville, the largest town in Cherokee County and the residence of one-third of the county's population.4 Rusk Bank is located in the town of Rusk, the county seat and second largest town Texas East BanCorp, Inc., in Cherokee County, which is located 13 miles south of Jacksonville, Texas Order Approving Formation of a Bank Holding Company 1. All banking data are as of June 30, 1982, unless otherwise noted. Texas East BanCorp, Inc., Jacksonville, Texas, has 2. Applicant's principals, individually and through various interapplied for the Board's approval under section 3(a)(1) ests, assumed control of Bank in 1959. One of these principals also of the Bank Holding Company Act ("BHC Act") owns 40 percent of the outstanding voting shares of Rusk Bank, over which he acquired control in 1944. In addition, there are numerous (12 U.S.C. § 1842(a)(1)) to form a bank holding compacommon directors and officers among Applicant, Bank, and Rusk ny by acquiring at least 80 percent of the voting shares Bank. of The First National Bank of Jacksonville, Jackson- 3. In particular, Applicant states that only 2 percent of Bank's depositors, representing 1.6 percent of Bank's total deposits, have ville, Texas ("Bank"). Rusk zip codes, while 86 percent have Jacksonville zip codes. Notice of the application, affording opportunity for 4. In addition, six miles west and south of the city is Lake Jacksonville. Approximately 1500 persons, who are not included in interested persons to submit comments and views, has the city's official population count, reside in the area surrounding this been given in accordance with section 3(b) of the Act. small lake. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 637 Jacksonville. Jacksonville and Rusk are linked by six banks in the Cherokee County market, controlling State Highway 69, a four-lane thoroughfare which runs $1.9 million in deposits, which represented 9.2 percent north-south and bisects Cherokee County. The record of total deposits in commercial banks in the market. shows that there is substantial commuting between Bank was the largest bank in Cherokee County, con- Jacksonville and Rusk. Based on the facts of record, trolling $7.1 million in deposits, which represented including the proximity of Jacksonville and Rusk, the 34.6 percent of the total deposits in commercial banks ready accessibility of each to the other, and the in the market. The combined market share of Bank commuting patterns and commercial interaction be- and Rusk Bank in 1959 was 43.8 percent. tween the two towns, each town offers to residents of In its most recent consideration of an application the other an available and practical alternative for a involving two affiliated banks in the same market,6 the variety of commercial services, including banking Board approved the formation of a bank holding services. Thus, it is the Board's judgment that Appli- company for one of the affiliated banks relying on the cant's proposed division of Cherokee County into two small absolute size of the banks at the time of affilimarkets disregards the economic reality and market ation, the substantial number of years that the instituforces existing between the towns of Jacksonville and tions had been affiliated, and the existence of the Rusk. affiliation before the application of the antitrust laws to Alternatively, Applicant asserts Bank and Rusk bank mergers.The same factors that were present in Bank compete in a larger tri-county banking market First Monco are also present in this case. At time of composed of all of Cherokee County, as well as the affiliation, the banks were relatively small, having adjacent Anderson and Rusk Counties. However, Ap- deposits in 1959 of $2 million and $7 million, respecplicant has provided little evidence of economic ties tively. Currently, the banks continue to be among the among Cherokee, Anderson, and Rusk Counties and smaller banking organizations in the state. The duratheir principal towns. Based on the facts of record, tion of the affiliation here is 24 years and did not including the distance and relative inaccessibility of represent an attempt to evade the antitrust laws or the Palestine and Henderson to Jacksonville and Rusk, BHC Act. Common control was effected in 1959, and the lack of commuting between Rusk and Ander- before the Celler-Kefauver Antimerger Act of 1950 son Counties on one hand and Cherokee County on was believed to apply to bank mergers; before the the other, the Board finds that there is no evidence of enactment of the Bank Merger Act of 1960, which significant economic interaction among Cherokee, An- required regulatory agencies to take competitive facderson, and Rusk Counties. Accordingly, the Board tors into account in approving proposed mergers; and concludes that the relevant banking market in which to before the enactment of the Bank Merger Act of 1966, analyze the competitive effects of this proposal is which clarified the applicability of the antitrust laws to approximated by Cherokee County, Texas. bank mergers. Section 3(c) of the Act precludes the Board from In its evaluation of the competitive effects of a approving any proposed acquisition that may tend to proposal in previous cases, the Board has considered create a monopoly or may substantially lessen compe- the presence of thrift institutions in a particular market tition or be in restraint of trade in any part of the as a substantial mitigating factor.7 In its most recent United States, unless the Board finds that such anti- consideration of the issue, the Board has accorded competitive effects are clearly outweighed by the considerable weight to the competitive influence of convenience and needs of the community to be served. thrifts.8 In analyzing a case under these standards where, as In this case, thrift institutions control approximately here, the principals of an applicant control another 48 percent ($162.4 million) of total market deposits, banking organization in the same market as the bank to and hold 13.4 percent of total transaction accounts and be placed in the holding company, the Board considers 11.3 percent of commercial loans in the Cherokee the competitive effects of the transaction whereby common control of the formerly competing institutions was established.5 In 1959, when Bank and Rusk Bank came under common control, Rusk Bank was the fourth largest of 6. First Monco Bancshares, Inc., 69 FEDERAL RESERVE BULLETIN 293 (1983) ("First Monco"). 7. Midlantic Banks, Inc. (Greater Jersey Bancorp) 69 FEDERAL RESERVE BULLETIN 652 (1983); First Bancorp of N.H., 68 FEDERAL RESERVE BULLETIN 769 (1982). 8. Fidelcor, Inc. (Southeast National Bancshares of Pennsylvania, 5. Mid-Nebraska Bancshares, Inc., 64 FEDERAL RESERVE BULLE- Inc.), 69 FEDERAL RESERVE BULLETIN 445 (1983); First Tennessee TIN 589 (1978). National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin • August 1983 County banking market.9 Indeed, the largest financial Washington Bancorporation, institution in the market is a savings and loan associa- Washington, D.C., tion, which is nearly twice as large as any bank in the market. In addition, excluding Bank and Rusk Bank, United Mine Workers of America, there remain seven other independent financial organi- Washington, D.C. zations in the Cherokee County market (including thrift institutions), which provide significant alterna- Order Approving Formation of a Bank Holding tive sources for banking services in the market, includ- Company and the Acquisition of Voting Shares of a ing a subsidiary of one of Texas' largest banking Bank Holding Company organizations. After considering the facts of record, including the Washington Bancorporation, Washington, D.C. substantial length of affiliation of Bank and Rusk Bank ("Bancorporation"), has applied for the Board's apand the significant presence of thrifts in the market, proval under section 3(a)(1) of the Bank Holding the Board concludes that competitive considerations Company Act of 1956, as amended ("BHC Act") are consistent with approval of the application. (12 U.S.C. § 1842(a)(1)), to acquire 100 percent of the Where principals of an applicant are engaged in voting shares of The National Bank of Washington, operating a chain of banking organizations, the Board, Washington, D.C. ("Bank"). The United Mine Workin addition to analyzing the one-bank holding company ers of America ("UMWA"), a registered bank holding proposal before it, also considers the entire chain and company under the BHC Act due to its ownership of analyzes the financial and managerial resources and 76 percent of the voting shares of Bank, has concurfuture prospects of the chain under the Board's Capital rently applied for the Board's approval under section Adequacy Guidelines.10 Based upon such analysis in 3(a)(3) of the BHC Act to acquire 76 percent of the this case, the financial and managerial resources and voting shares of Bancorporation in exchange for the future prospects of Applicant, Bank and the chain UMWA's shares of Bank. The UMWA will continue banking organization appear to be satisfactory. There- to be a registered bank holding company upon confore, considerations relating to banking factors are summation of these proposals inasmuch as it will consistent with approval of the application. Consider- continue to control shares of Bank indirectly through ations relating to convenience and needs of the com- Bancorporation. munity to be served also are consistent with approval Notice of these applications, affording an opportuniof this application. Accordingly, it is the Board's ty for interested persons to submit comments, has judgment that the proposed acquisition is in the public been given in accordance with section 3(b) of the BHC interest and that the application should be approved. Act (12 U.S.C. § 1842(b)). The time for filing com- On the basis of the record, the application is ap- ments has expired and the Board has considered the proved for the reasons summarized above. The trans- applications and all comments received in light of the action shall not be consummated before the thirtieth factors set forth in section 3(c) of the BHC Act. calendar day following the effective date of this Order Bancorporation is a non-operating corporation or later than three months after the effective date of whose only asset will be Bank. The UMWA is a labor this Order, unless such period is extended for good organization exempt from the prohibitions of section 4 cause by the Board or by the Federal Reserve Bank of of the BHC Act whose only banking asset is Bank. Dallas acting pursuant to delegated authority. Bank, with total domestic deposits of approximately By order of the Board of Governors, effective $676.5 million, is the sixth largest banking organization July 26, 1983. in the Washington, D.C., banking market and controls 4.7 percent of total deposits held in commercial banks Voting for this action: Vice Chairman Martin and Gover- in the market.1 The proposals involve a corporate nors Partee, Teeters, and Rice. Absent and not voting: reorganization and will not have any adverse effects on Chairman Volcker and Governors Wallich and Gramley. existing or potential competition or result in increased concentration in the Washington, D.C., banking mar- JAMES MCAFEE, ket. Competitive considerations are therefore consist- [SEAL] Associate Secretary of the Board ent with approval. The financial and managerial resources and future prospects of Bancorporation, the UMWA, and Bank are regarded as generally satisfactory. Accordingly, 9. If the Board were to include the deposits held by thrift institutions in the market in the commercial bank line of commerce, the market share controlled by Bank and Rusk Bank would be reduced from 42.0 to 21.7 percent. 10. 68 FEDERAL RESERVE BULLETIN 33 (1982), as amended by 69 1. The Washington, D.C. banking market consists of the Washing- Digitized for FFERDEARSAEL RR ESERVE BULLETIN 539 (1983). ton Ranally Metro Area. All banking data are as of June 30, 1982. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 639 considerations relating to banking factors are consist- tively, "Applicants"), all bank holding companies ent with approval. Although no new services for within the meaning of the Bank Holding Company Act customers of Bank are presently contemplated as a ("BHC Act") (12 U.S.C. § 1841 et seq.), have applied result of Bancorporation's and UMWA's proposals, for the Board's approval under section 4(c)(8) of the considerations relating to the convenience and needs BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b) of the community to be served are consistent with of the Board's Regulation Y (12 C.F.R. § 225.4(b)), approval. Based on the foregoing and other consider- each to acquire 10 percent2 of the voting shares of ations reflected in the record, the Board's judgment is Florida Interchange Group, Inc. ("FIG"), Orlando, that consummation of these proposals would be con- Florida, a joint venture to engage de novo in data sistent with the public interest, and that the applica- processing and related activities. FIG will operate an tions should be approved. electronic funds transfer ("EFT") system for inter- On the basis of the record and for the reasons changing financial transactions throughout Florida. discussed above, the applications of Bancorporation The proposed interchange system ("the Switch") will and UMWA are hereby approved. The transactions operate as a neutral clearing house for customer EFT shall not be consummated before the thirtieth day banking transactions, such as cash withdrawals, funds following the effective date of this Order, or later than transfers, balance inquiries, and point-of-sale debit three months after the effective date of this Order, and credit transactions. Access to the Switch will be unless such period is extended for good cause by the available to all insured depository institutions located Board or by the Federal Reserve Bank of Richmond, in Florida. The Switch will enable the customers of pursuant to delegated authority. each participating depository institution to access their By order of the Board of Governors, effective accounts by using their institution's proprietary access July 19, 1983. card at point-of-sale ("POS") terminals and automated teller machines ("ATMs") located in shopping centers, grocery stores, office buildings and conven- Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Teeters, and Gramley. Present and ience stores throughout Florida. These terminals will abstaining: Governor Rice. be owned, installed and operated not by the Switch but by the participating financial institutions and by retail- JAMES MCAFEE, [SEAL] Associate Secretary of the Board ers and third parties that have contracted with participating institutions to provide terminals to those institutions. Thus, the sole function of the Switch will be to Orders Under Section 4 of Bank Holding operate as a clearing facility for the banking transac- Company Act tions initiated at the ATMs and POS terminals that are placed within the Switch system. Customer transac- Atlantic Bancorporation, et al., tions at these terminals will be passed through the Jacksonville, Florida terminal owner's computer to the Switch, which will then route the messages to the card holder's institu- Order Approving Acquisition of Shares in Florida tions3 for processing. Interchange Group The Switch will operate behind the participating institutions; that is, no terminals will be connected Atlantic Bancorporation ("Atlantic"), Barnett Banks directly to the Switch. Instead, all terminals will be of Florida Inc. ("Barnett"), Florida National Banks of connected to computers of the participating institu- Florida, Inc. ("Florida National"), all of Jacksonville, tions or their designated processors (or to the comput- Florida; First Florida Banks, Inc. ("First Florida"), ers of retailers and corporations that operate terminals Tampa, Florida; Landmark Banking Corporation of sponsored by participating institutions), which will in Florida ("Landmark"), Fort Lauderdale, Florida; turn communicate with the Switch. Thus, the general Southeast Banking Corporation ("Southeast"), Mi- and technical operational objective of the Switch is to ami, Florida; Southwest Florida Banks, Inc. ("South- provide for the central transmission of "non-on-us" west"), Fort Myers, Florida; Sun Banks of Florida, financial transaction messages (that is, transactions Inc. ("Sun"), Orlando, Florida; and NCNB Corporation ("NCNB"), Charlotte, North Carolina1 (collec- 2. Salco One, Inc., a wholly-owned subsidiary of AmeriFirst Federal Savings and Loan Association, Miami, Florida, will acquire the remaining 10 percent of FIG. Salco was chartered for the purpose of 1. With the exception of NCNB, all the co-venturers are located in engaging in activities permissible for savings and loan associations but Florida. NCNB is located in North Carolina and controls banks is presently inactive. located in North Carolina and Florida; however, only the Florida bank 3. The term "card-holder institution" refers to the institution subsidiaries of NCNB will participate in the Florida Interchange whose proprietary access card is used by its customer ("the card- Group. holder") at one of the terminals within the Switch system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin • August 1983 initiated by a financial institution card-holder at a Southwest, with $1.24 billion in deposits and 2.8 terminal owned or sponsored by another financial percent of commercial bank deposits, is the tenth institution) between participating institutions.4 The largest commercial banking organization in that state. participating institutions will respond directly to "on- Finally, Landmark with 2.4 percent of commercial us" transactions (that is, transactions by their card- bank deposits and $1.0 billion in deposits, is the holder at their terminal) and will route only "non-on- eleventh largest commercial banking organization in us" transactions to the Switch. Florida.6 These data processing and related activities have Each of the co-venturers currently engages either been determined by the Board to be closely related to directly or indirectly, through a subsidiary or affiliate, banking and are permissible under section 225.4(a)(8) in data processing and data transmission activities, of Regulation Y (12 C.F.R. § 225.4(a)(8)(i) and (ii)). including the operation of proprietary ATM networks. Notice of these applications, affording opportunity for The proprietary ATM networks operated directly or interested persons to submit comments and views, has indirectly by the co-venturers provide services for the been duly published. (48 Federal Register 20138 (May co-venturers' affiliated banks. Only First Florida, 4, 1983)). The time for filing comments and views has through the data processing division of its lead bank, expired and the Board has considered the applications currently operates a proprietary ATM network for and all comments received in light of the factors set nonaffiliated as well as affiliated institutions.7 Unlike forth in section 4(c)(8) of the BHC Act, (12 U.S.C. the Switch, however, the function of First Florida's § 1843(c)(8)). network and the proprietary networks of the other co- Applicants are among the largest banking organiza- venturers is not limited to interchanging transactions: tions in Florida. Barnett, with aggregate deposits of these networks also issue cards and provide and $5.67 billion, representing 12.9 percent of deposits in directly support terminals. Because the Switch will only interchange "non-on-us" transactions, the indicommercial banks in Florida, is the largest commercial banking organization in that state.5 Southeast, repre- vidual co-venturers (either directly or through their subsidiaries or affiliates) will continue to operate their senting 11.1 percent of deposits in commercial banks own proprietary ATM network while participating in in Florida, and controlling $4.88 billion in commercial the Switch's shared interchange system. bank deposits, is the second largest commercial banking organization in Florida. Sun, the third largest The FIG Switch will not own or operate any ATM or commercial banking organization in Florida, possesses POS terminals.8 Because of the limited interchange $4.0 billion in deposits, representing 9.1 percent of functions of the Switch, each terminal owner and deposits in commercial banks in Florida. Florida Na- sponsor and each card holder institution will price its tional is the fifth largest banking organization in Flori- services to merchants, card holders, or third parties as da with $2.0 billion in commercial bank deposits, it deems appropriate. The Switch will assess a transacrepresenting 4.8 percent of commercial bank deposits tion charge against the institution whose card-holder in that state. First Florida, with $1.93 billion in com- has used a terminal owned or sponsored by another mercial bank deposits, is the sixth largest commercial institution, will retain a portion of the charge as a banking organization in Florida, representing 4.4 per- service fee, and will credit the remainder of the charge cent of commercial bank deposits in Florida. Atlantic, to the institution that owns or sponsors the terminal. Florida's seventh largest commercial banking organization, controls aggregate deposits of $1.87 billion, representing 4.2 percent of commercial bank deposits in Florida. NCNB's Florida subsidiaries hold 3.6 per- 6. AmeriFirst, the largest savings and loan association in Florida, cent of commercial bank deposits in that state, with holds deposits of $2.76 billion. 7. Eighteen nonaffiliated banks and credit unions participate in $1.6 billion in deposits, thus making it the eighth First Florida's proprietary network. With the exception of four largest commercial banking organization in Florida. nonaffiliates which lease ATMs from First Florida's lead bank, the nonaffiliates own their own ATMs. Two of the nonaffiliated banks operate ATMs for the exclusive use of their customers. Otherwise, card-holding customers of the participating institutions have access to any ATM in the network. 8. In fact, for the first two years of Switch operations only "off- 4. In addition to transmitting financial transaction messages be- premises" ATMs (that is, units installed 100 feet or more from the tween participating institutions, the Switch will perform the following property line of a manned branch office or drive-up facility of a incidental functions: monitoring and maintaining technical Switch participating institution) and POS terminals will be placed within the performance standards; assisting in the training and education of Switch system, with certain exceptions permitted. After the two-year participants; producing and distributing timely reports to manage- period, the board of directors of the corporation may elect to allow ment; and performing a daily settlement on all transactions passing participating institutions to include their on-premises ATMs in the through the Switch. system. The actual location of all off-premises and subsequent on- 5. Deposit and market data are as of June 30, 1982, and reflect premises terminals will be determined solely by the participating holding company acquisitions approved as of June 21, 1983. institutions that own or sponsor the terminals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 641 Any state or federal insured depository institution the Switch hopes to offer in early 1984, Publix Superlocated in Florida may use the Switch's interchange markets Inc. has already publicly announced that it service by joining the Switch.9 Participants will pay a will offer competing POS services, and a joint venture one-time initiation fee, an annual membership fee, and between Barnett and NCR Corporation is expected to the above-mentioned transaction fees for services per- become operational before year end. It is also likely formed by the Switch. All existing proprietary ATM that some of the other competing ATM systems will systems of participating financial institutions will con- expand their services to include POS interchange. The tinue to operate; FIG will merely interface among existence of these current and potential entrants mitithose systems. gate concerns that the FIG interchange system may The appropriate line of commerce for analyzing the represent so large a proportion of possible ATM/POS competitive effects of consummation of this proposal facilities in local markets that no competing networks is the provision for unaffiliated financial institutions of could exist. Additionally, the membership contract data processing services. As described above, except that is proposed for FIG-participating institutions profor the services to be provided through FIG, no vides a term of only three years and does not restrict Applicant offers data processing services to other the ability to participate in or own other existing or unaffiliated financial institutions.10 Inasmuch as the future shared systems. The co-venturers are similarly proposed venture is to commence de novo, no existing free to share ownership of, or participate in, other competition among the co-venturers in operating an such shared systems. In this light, the loss of these interchange system would be eliminated. potential entrants into the market for data processing The Board has also considered the effects of con- services does not raise any serious concerns.12 Acsummation of this proposal on probable future compe- cordingly, the Board concludes that consummation of tition in the relevant line of commerce, particularly in the proposed joint venture would not have any signifilight of the fact that this application involves the use of cantly adverse effects upon probable future coma joint venture to engage in the relevant activities. As petition. indicated above, Applicants are some of the largest The Board also has reviewed this proposal to ensure financial institutions in Florida and several of these that no unfair competitive practices, violations of law organizations presumably could offer these services or other substantially adverse effects would result independently. However, with the exception of some from consummation of this proposal. In this regard, ancillary data processing relative to their proprietary because FIG may have a substantial share of ATM/ ATM networks and the activities of First Florida's POS transactions in several local markets, Applicants lead bank, Applicants have chosen not to engage in could potentially disadvantage competing financial insuch activities. Moreover, the market for such data stitutions by unreasonably denying them access to the processing activities is not regarded as concentrated. Switch.13 After careful review of the application and There currently are at least four Florida shared net- other facts of record, the Board concludes that no works and several national shared networks, in vari- evidence exists upon which to conclude that consumous stages of development, which will be competing mation of the proposal would result in unfair competiwith the Switch for participants.11 Applicants have tion, conflicts of interest or unsound banking pracsubmitted evidence indicating that there are several tices.14 existing and potential ATM network exchanges in Florida. Regarding POS interchange services, which 12. Furthermore, the number of shared ATM networks in Florida and nationwide currently in operation, and the increasing popularity of such networks, suggest that the barriers to entry into the activity of providing data processing services to unaffiliated institutions are low. Additionally, it appears that numerous financial and nonfinancial 9. All insured Florida depository institutions (or their affiliates) also institutions possess the technical and managerial skills necessary to were afforded an opportunity to share ownership of the Switch. operate shared networks on a similar basis as proposed by Applicants. Hence, both equity and nonequity participation in the Switch was 13. "Unreasonably denying access" refers to practices such as made available. excluding certain firms for the primary purpose of competitively 10. The First Florida proprietary ATM network is operated by that disadvantaging them or charging an access fee far in excess of any holding company's lead bank, and not directly by the holding compa- reasonable costs associated with joining the system. ny. 14. For example, Applicants have committed that the transaction 11. The four national ATM networks known to be competing with fee charged by the Switch will be nondiscriminatory and will relate the Switch system are ADP-Exchange, Plus Systems, Inc., Cirrus solely to the interchange services that it provides. In addition, Systems, Inc., and Nationet. All networks are expected to be in nonequity participants joining at the same time as the initial cooperation on a national basis some time this year. In Florida, two venturers will be charged the same (discounted) annual membership shared ATM networks currently are operational: Publix Supermarkets fees and transaction fees. Subsequent members will not receive this Inc., and Credit Union 24. Neighborhood Banking Centers and NCR "charter" discount and additionally will pay an initiation fee as well as Corporation each currently are developing Florida ATM networks standard membership and transaction fees. As indicated above, with participation open to all financial institutions. Applicants pledge that these fees will be otherwise nondiscriminatory. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin • August 1983 In addition to the joint venture's effect on competi- would enable Applicants to share the cost of expandtion between Applicants and its competitors, there is ing and improving EFT services and would ensure also the possibility that Applicants could use the joint greater availability of funds from product research and venture as a mechanism for limiting competition development. among themselves. Inasmuch as Applicants are direct There is no evidence in the record in this case and significant competitors in numerous local markets indicating that consummation of the present proposal in Florida, the joint venture could be used to limit the would result in undue concentration of resources, extent to which, or on what terms, Applicants com- unfair competition, conflicts of interests, unsound pete. After carefully analyzing the information in this banking practices or other adverse effects. Based upon application, however, the Board concludes that com- the foregoing and other facts of record, the Board petition among Applicants is not likely to be substan- concludes that the balance of public interest factors it tially reduced by this joint venture.15 must consider under section 4(c)(8) favors approval of The Board has also considered the effect of consum- these applications. In addition, the financial and manamation of this proposal in light of state and federal gerial resources and future prospects of Applicants are laws governing the establishment of branches and the considered consistent with approval. use of ATM/POS terminals in a network. As described Accordingly, the Board concludes that approval of above, the FIG switch would only provide data proc- these applications is in the public interest and has essing services for the interchange and would neither determined that the applications should be approved. own nor provide ATM/POS terminals. Moreover, This determination is subject to the conditions set membership in the interchange is not restricted and forth in section 225.4(c) of Regulation Y and to the Applicants have stated that the institutional partici- Board's authority to require such modification or pants in the interchange would comply with all appli- termination of the activities of a bank holding compacable federal or state branching and other statutes ny or its subsidiaries as the Board finds necessary to regarding the establishment and use of ATM/POS in a assure compliance with the provisions and purposes of network.16 Applicants further have committed to offer the Act and the Board's regulations and orders issued through the interchange only those transactional serv- thereunder or to prevent evasion thereof. ices legally available to ATM/POS customers of partic- Consummation of this transaction shall not be made ipating financial institutions under applicable federal later than three months after the effective date of this and Florida laws. Order, unless such period is extended for good cause It is the Board's view that approval of these applica- by the Board or by the Federal Reserve Bank of tions can reasonably be expected to produce substan- Atlanta pursuant to delegated authority. tial benefits to the public. Consummation of this By order of the Board of Governors, effective proposal would allow individuals residing in Florida July 12, 1983. access to a larger number of ATM/POS terminals. In addition, the FIG switch would introduce to Florida a Voting for this action: Vice Chairman Martin and Governew provider of data processing services and an nors Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker and Governor Wallich. alternative ATM/POS network interchange. Further, the economies of scale that would result from operation of the combined network would accrue to all JAMES MCAFEE, [SEAL] Associate Secretary of the Board participating institutions. Finally, the joint venture BancOhio Corporation, 15. Each of the member financial institutions is free to join otner Columbus, Ohio shared networks or switches; thus, each has the flexibility to compete by offering its customers access to as many ATM/POS terminals as it chooses. In addition, each member has sole discretion over the Order Approving Application to Engage in Equity decision where to locate its ATM/POS terminals, thereby preserving its ability to develop a system most convenient for its customers. Financing and Mortgage Banking Activities Finally, while there are some common standards on the types and numbers of transactions that can be offered within the FIG inter- BancOhio Corporation, Columbus, Ohio, a bank holdchange, these seem consistent with the inherent technological constraints of linking together ATM or POS terminals. ing company within the meaning of the Bank Holding 16. Florida has enacted a "remote financial service unit" statute, Company Act ("Act"), has applied for the Board's which authorizes financial depository institutions to "use the facilities of, or participate in the use of, ... remote financial service approval under section 4(c)(8) of the Act (12 U.S.C. units. ..." (Fla. Stat. Ann. § 658.65 (West Supp. 1982)). This statute § 1843(c)(8)) and section 225.4(b)(2) of the Board's regulates the establishment and operation of the ATM/POS terminals Regulation Y (12 C.F.R. § 225.4(b)(2)), to engage in that will be connected to the computers of member institutions and retailers. arranging equity financing and mortgage banking ac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 643 tivities through its subsidiary, W. Lyman Case & This determination is subject to the conditions set Company, Columbus, Ohio ("WLC"), at a new office forth in section 225.4(c) of Regulation Y and the in Cleveland, Ohio. Mortgage banking and servicing Board's authority to require such modification or activities have been determined by the Board to be termination of the activities of a holding company or closely related to banking. (12 C.F.R. § 225.4(a)(1) and any of its subsidiaries as the Board finds necessary to (3)). While the activity of arranging equity financing assure compliance with the provisions and purposes of has not been specified by the Board in Regulation Y as the Act and the Board's regulations and orders issued a permissible activity for bank holding companies, the thereunder, or to prevent evasion thereof. The trans- Board has determined by order that equity financing, action shall be made not later than three months after subject to certain limitations and conditions, is closely the effective date of this Order, unless that period is related to banking.1 In December 1982, the Board extended for good cause by the Board or by the approved Applicant's proposal to acquire WLC and to Federal Reserve Bank of Cleveland, acting pursuant to engage in equity financing activities.2 delegated authority. Notice of the application, affording interested per- By order of the Board of Governors, effective sons an opportunity to submit comments on the bal- July 14, 1983. ance of public interest factors regarding the application, has been duly published (48 Federal Register Voting for this action: Vice Chairman Martin and Gover- 21198 (1983)). The time for filing comments has ex- nors Partee, Teeters, Rice, and Gramley. Absent and not pired and the Board has considered the application and voting: Chairman Volcker and Governor Wallich. all comments received in light of the public interest factors set forth in section 4(c)(8) of the Act. JAMES MCAFEE, Applicant is the largest banking organization in Ohio [SEAL] Associate Secretary of the Board and controls two banking subsidiaries with aggregate deposits of $4.4 billion, representing 9.2 percent of total commercial bank deposits in the state.3 Applicant Centerre Bancorporation, et al., also engages through subsidiaries in various nonbank- St. Louis, Missouri ing activities permissible for bank holding companies. Applicant proposes to conduct equity financing ac- Order Approving Acquisition of Monetary Transfer tivities at its new Cleveland office in accordance with System all the terms of the Board's previous order approving Applicant's equity financing activities. The Board Centerre Bancorporation ("Centerre"), Mercantile views Applicant's proposed new office as procompet- Bancorporation ("Mercantile"), County Tower Coritive and in the public interest because de novo entry poration ("County Tower"), all of St. Louis, Missouprovides an additional source of competition.4 In ri; Charter Corporation ("Charter"), Kansas City, addition, there is no evidence in the record to indicate Missouri; and CNB Financial Corporation ("CNB"), that consummation of this proposal would result in Kansas City, Kansas (collectively "Applicants"), all undue concentration of resources, unfair competition, bank holding companies within the meaning of the conflicts of interests, unsound banking practices, or Bank Holding Company Act ("BHC Act") (12 U.S.C. any other effects that would be adverse to the public § 1841 et seq.), have applied for the Board's approval interest. Based upon the foregoing and other consider- under section 4(c)(8) of the BHC Act (12 U.S.C. ations reflected in the record, the Board has deter- § 1843(c)(8)) and section 225.4(b) of the Board's Regumined that the balance of public interest factors it is lation Y (12 C.F.R. § 225.4(b)), to establish a joint required to consider under section 4(c)(8) is favorable. venture and limited partnership1, Monetary Transfer Accordingly, this application is approved.5 System ("MTS"), to engage de novo in data processing and related activities. MTS would operate2 a 1. BankAmerica Corporation, 68 FEDERAL RESERVE BULLETIN 647 (1982). 2. BancOhio Corporation, 69 FEDERAL RESERVE BULLETIN 34 1. CNB and County Tower each will acquire at least a one-eighth (1983). ownership interest in MTS. The remaining applicants will each 3. Banking data are as of December 31, 1982. acquire a one-fourth ownership interest. 4. Virginia National Bancshares, Inc., 66 FEDERAL RESERVE BUL- 2. Credit Systems Incorporated, St. Louis, Missouri, would oper- LETIN 668, 671 (1980). ate MTS under a management contract. CSI has over 15 years 5. The Board hereby delegates to the Federal Reserve Bank of experience as a regional data processing center in credit card transac- Cleveland authority to approve future applications by Applicant to tions. Each Applicant will have a representative on the "Board of expand its equity financing activities de novo, subject to the terms of Managers" of MTS, who will be responsible for establishing policy for the Board's previous Order approving such activities. MTS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin • August 1983 communications network processing service and trols 22 banks with aggregate total deposits of $3,368.3 switching system for electronic funds transfer and million, representing 11.45 percent of deposits in cominformation exchange among banks and other financial mercial banks in Missouri, and is the second largest institutions, for use by their customers and through the commercial banking organization in the state. Charter, use of automated teller machines 3 ("ATMs") owned the fourth largest commercial banking organization in or operated by the system participants.4 Customers of Missouri, controls 27 banks with aggregate total deeach participating institution will be able to engage in posits of $1,835.8 million, representing 6.24 percent of those financial transactions deemed permissible under deposits in commercial banks in the state. County state law at the particular ATM owned or operated by Tower controls nine banks, with aggregate total deposa participating financial institution, including such its of $784.3 million, representing 2.67 percent of transactions as: (1) withdrawal of money from an deposits in commercial banks in the state, and is the account; (2) transfer of money between accounts at the seventh largest commercial banking organization in same financial institution; and (3) obtaining a cash Missouri. CNB controls $185.1 million in total deposadvance from MasterCard at appropriate participating its, representing 1.19 percent of statewide deposits in financial institutions. Every subscriber to the system Kansas, through Commercial National Bank of Kanwould have the right to issue magnetically encoded sas City, Kansas City, Kansas, the sixth largest bank cards accessing all ATMs in the system for those in the state. Mercantile, Centerre, and Charter are services allowed by state law. Initially, the system statewide holding companies. Eight of the nine subsidwould operate in Missouri and Kansas, but eventually iary banks of County Tower are located within the St. and where authorized by law, also would operate in Louis SMSA. Four of the five Applicants operate Illinois, Iowa, and Kentucky. Such activities have internal ATM systems with proprietary cards that are been determined by the Board to be closely related to each connected to a single central processing unit banking and are permissible under Section 225.4(a)(8) ("CPU"), but none operates a system available to of Regulation Y. (12 C.F.R. § 225.4(a)(8)(i) and (ii)). non-related banks or other financial institutions.6 Notice of this application, affording opportunity for MTS would provide data processing services to the interested persons to submit comments and views, has joint venturers as well as to non-equity participants by been duly published. (48 Federal Register 9690 (March operating an automated teller network interchange.7 8, 1983)). The time for filing comments and views has MTS does not own or intend to own or provide any expired and the Board has considered the application ATMs. Each ATM in the MTS-ATM network would and comments received in light of the factors set forth be owned by one of the member financial institutions. in section 4(c)(8) of the BHC Act (12 U.S.C. The member financial institutions that own the ATMs § 1843(c)(8)). would be compensated for their use by customers of Applicants are some of the largest bank holding another financial institution on a transaction fee basis. companies in Kansas and Missouri. Mercantile, the All existing proprietary ATM systems of participating largest commercial banking organization in Missouri, financial institutions will continue to operate; MTS controls 34 banks with aggregate total deposits of will merely interface with those systems. $3,449.7 million, representing 11.72 percent of depos- The appropriate line of commerce for analyzing the its in commercial banks in that state.5 Centerre con- competitive effect of consummation of this proposal is the provision to unaffiliated financial institutions of 3. As explained in a recent Board Order approving a similar joint venture to engage in the operation of a data processing "switch", an 6. CNB's subsidiary bank operates Bankmatic, a shared ATM ATM is a "machine that performs many of the functions performed by network in Kansas, which commenced operations in January 1976. a human bank teller. Other terms may be used to describe ATMs such Bankmatic cardholders, regardless of bank affiliation, have complete as customer bank communications terminals ("CBCTs") or remote access to all Bankmatic ATM locations. The Bankmatic system will service units ("RSUs"). Through an ATM, a customer of a financial remain intact and be unaffected by MTS, except where there is a institution may make deposits, withdrawals, transfer funds from one transaction between a "Bankmatic" bank and one outside that system account to another, or draw on pre-established lines of credit. An but within MTS. In that instance, MTS would serve as an interchange ATM may be located either at manned facilities of a bank or may stand between the two systems. Thus, the customer would have enhanced by itself." Interstate Financial Corporation, 69 FEDERAL RESERVE use of a Bankmatic access card, but the Bankmatic system itself (as all BULLETIN 560. other similar systems) would be unaffected. 4. Applicants will be the original equity participants in the joint 7. An ATM network interchange links various ATMs with the venture. Other banking organizations may utilize MTS' switching financial institutions whose customers use such ATMs. Also, the services and join the shared ATM network without becoming equity ATMs are linked with a central data processing center that acts as a partners in the joint venture. clearinghouse or "switch" for transactions between the ATMs and 5. Mercantile's 34 subsidiary banks include one de novo bank not the financial institutions belonging to the ATM network interchange. yet opened: Clayton Mercantile Bank and Trust Company, Clayton, Any customer of a financial institution belonging to an ATM network Missouri (acquisition approved August 25, 1982). Deposit data (do- interchange may use any ATM in the exchange, regardless of whether mestic) are as of September 30, 1982, and reflect holding company such ATM is owned by another financial institution, to conduct a acquisitions approved through December 31, 1982. banking transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 645 data processing services, particularly the operation of vices does not raise any serious concerns in this light.'' an ATM network exchange. As described above, Accordingly, the Board concludes that consummation except for the services to be provided through MTS, of the proposed joint venture would not have any no applicant offers data processing services to other significantly adverse effects upon probable future unaffiliated financial institutions. Inasmuch as the pro- competition. posed venture is to commence de novo, no existing The Board also has reviewed this proposal to ensure competition among the venturers in operating a shared that no unfair competitive practices, violations of law ATM network would be eliminated. or other substantially adverse effects would result The Board has also considered the effects of con- from consummation of this proposal. In this regard, summation of this proposal on probable future compe- because MTS may have a substantial share of ATM tition in the relevant line of commerce, particularly in transactions in several local markets, Applicants could light of the fact that this application involves the use of potentially disadvantage competing financial institua joint venture to engage in the relevant activities. tions by unreasonably denying them access to the Applicants are some of the largest banking organiza- MTS switch and the shared ATM network.12 After tions in Kansas and Missouri, and control the leading careful review of the application and other facts of banks in several banking markets.8 In this regard, record, the Board concludes that no evidence exists several of these organizations presumably could offer upon which to conclude that consummation of this these services independently. However, with the ex- proposal would result in unfair competition, conflicts ception of some ancillary CPU processing relative to of interests or unsound banking practices.13 their proprietary ATM systems, Applicants have cho- In addition to the joint venture's effect on competisen not to engage in such activities and do not appear tion between Applicants and their competitors, there to be likely independent entrants absent this joint is also the possibility that Applicants could use the venture. Moreover, the market for such data process- joint venture as a mechanism for limiting competition ing activities is not regarded as concentrated. There among themselves. Inasmuch as Applicants are direct are several competing ATM network exchanges cur- and significant competitors in several markets, the rently in place in many of the same markets in which joint venture could be used as a mechanism for limiting Applicants operate. Applicants have sufficiently demthe extent to which, or on what terms, Applicants onstrated that other networks could profitably be compete. After carefully analyzing the information in established.9 The existence of the current and potenthis application, however, the Board concludes that tial competitors mitigates concerns that the MTScompetition among Applicants is not likely to be ATM network may represent so large a proportion of substantially reduced by this joint venture.14 possible ATM facilities in local markets that no com- The Board has also considered the effect of consumpeting networks could exist.10 The loss of these potenmation of this proposal in light of state and federal tial entrants into the market for data processing serlaws governing the establishment of branches and the 11. An additional pro-competitive factor is a subscriber's ability to choose any data processor to connect with the MTS switch. The various MTS system agreements have been structured such that each subscriber to the system will be free to make its own arrangement with 8. The four Missouri bank holding companies are direct competi- either an existing member processor or another entity that may join tors in seven Missouri banking markets, and also compete with CNB the system as a data processor, and in turn transmit to and receive in the Kansas City banking market. In most of these markets, information from the central MTS switch. Applicants are among the top five banking organizations. 12. "Unreasonably denying access" refers to practices such as 9. Two ATM networks, UNITEL (Electronic Funds Transfer Sys- excluding certain firms for the primary purpose of competitively tem, Inc.) and Universal Money Market Centers, Inc., either operate disadvantaging them or charging an access fee far in excess of any or are planning to operate shared networks in most of the markets in reasonable costs associated with bringing an additional participant which MTS members operate. UNITEL projects it will install 1,000 into the system. terminals in the Kansas City area, and provides ATM services to at 13. For example, financial institutions do not have to be equity least 20 banks and savings and loan associations in the Kansas City participants in the joint venture in order to have access to the ATM area. Universal Money Market Centers plans to have ATM facilities in network or to utilize the switch. In addition, it appears that both joint all the major areas where Applicants compete. Finally, United Mis- venture participants and non-equity participants in MTS will be souri Banks, a major competitor of Applicants, is part of the PLUS charged the same prices for transactions made through MTS. system and has a large local network of ATMs. 14. Each of the member bank holding companies is free to join 10. Nor does the evidence available regarding the MTS switch's other shared networks or switches; thus, each has the flexibility to economies of scale indicate that such economies would be of such compete by offering its customers access to as many ATMs as it magnitude as to limit the establishment of competing systems. Fur- chooses. In addition, each member has sole discretion over the thermore, the number of shared ATM regional networks currently in decision where to locate its own ATMs, thereby preserving its ability operation and the increasing popularity of such networks suggest that to develop a system most convenient for its customers. Finally, while the barriers to entry into this activity are low. Thus, it appears that there are some common standards on the types and number of numerous financial and nonfinancial institutions may possess the transactions that can be offered in the MTS-ATM network, these seem technical and managerial skills necessary to operate shared networks consistent with the inherent technological constraints of linking toon a similar basis as proposed by Applicants. gether ATMs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Federal Reserve Bulletin • August 1983 use of ATMs in a network. As described above, the from operation of a combined network would accrue MTS network would only provide data processing to all participating financial institutions. Finally, the services for the interchange and would neither own joint venture would enable Applicants to share the nor provide ATMs. Moreover, membership in the cost of expanding and improving EFT services and network is not restricted and Applicants have stated would ensure greater availability of funds for product that the institutional participants in the network would research and development. comply with all applicable federal and state branching There is no evidence in the record of this application and other statutes regarding establishment and use of indicating consummation of the present proposal ATMs in the network. Applicants further have com- would result in undue concentration of resources, mitted to offer through the interchange only those unfair competition, conflicts of interest, unsound transactional services legally available to ATM cus- banking practices or other adverse effects. Based upon tomers of participating financial institutions under the foregoing and other facts of record, the Board applicable federal and state laws. concludes that the balance of public interest factors it In this regard, the Kansas State Bank Commissioner must consider under section 4(c)(8) of the Act favors has objected to the participation of out-of-state banks approval of this application. In addition, the financial in "joint auxiliary systems" within the state of Kansas and managerial resources and future prospects of pursuant to his interpretation of Kan. Stat. Ann. Applicants are considered consistent with approval. § 9-1111(a) (1978). Additionally, the Kansas Attorney Accordingly, the Board concludes that approval of General, in a recent opinion,15 has commented unfa- this application is in the public interest and has detervorably on an agreement between a Kansas bank and mined that the application should be approved. This an out-of-state financial institution for the operation determination is subject to the operation of the switch within Kansas of "remote service units" by the out-of- in conformance with state requirements, to section state institution. In response to these comments, Ap- 225.4(c) of Regulation Y, and to the Board's authority plicants have committed to comply with all decisions to require such modification or termination of the of the state regulatory authorities in their operation of activities of a bank holding company or its subsidiaries the switch, and have developed a "double loop sys- as the Board finds necessary to assure compliance tem" to conform with state requirements until such with the provisions and purposes of the Act and the time as full interstate operation of the MTS switch is Board's regulations and orders issued thereunder or to permitted. prevent evasions thereof. Illinois currently restricts the operation of a trans- Consummation of this transaction shall not be made mission facility for electronic funds transfer to out-of- later than three months after the effective date of this state financial institutions, except pursuant to a recip- Order, unless such period is extended for good cause rocal agreement with a contiguous state. (111. Ann. by the Board or by the Federal Reserve Banks of Stat. ch. 17, § 6-104 (Smith-Hurd 1981 & Supp. 1982)). Kansas City and St. Louis pursuant to delegated Inasmuch as Kansas is not contiguous to Illinois and authority. no reciprocal agreement exists between the states, By order of the Board of Governors, effective operation of the MTS switch as currently structured is July 13, 1983. impermissible within Illinois. Accordingly, Applicants have committed to limit operations in Illinois to trans- Voting for this action: Vice Chairman Martin and Goveractions upon non-Kansas-based financial institutions nors Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker and Governor Wallich. until Illinois law is changed. It is the Board's view that approval of this application reasonably may be expected to produce substan- JAMES MCAFEE, tial benefits to the public. Consummation of this [SEAL] Associate Secretary of the Board proposal would allow individuals residing in Kansas and Missouri (subject to state law) immediate access to a larger number of ATMs. In addition, eventual Chemical New York Corporation, expansion of the network (again, subject to applicable New York, New York state law) into Iowa, Illinois, and Kentucky would introduce to those areas a new provider of data Order Approving Application to Engage in Equity processing services and an alternative ATM network. Financing Activities In addition, the economies of scale that would result Chemical New York Corporation, New York, New York, a bank holding company within the meaning of 15. Kansas Attorney General Opinion No. 83-100 (June 29, 1983). the Bank Holding Company Act ("Act"), has applied Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 647 for the Board's approval under section 4(c)(8) of the itself out or advertise as a real estate broker or Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of syndicator. This activity would be provided only with the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to respect to multi-family residential, commercial or inengage de novo, through its wholly owned subsidiary, dustrial income-producing property and only when the Chemical Mortgage Company, Columbus, Ohio financing arranged exceeds $1 million. Only institu- ("Company"), in the activity of arranging equity fi- tional or wealthy, professional individual investors nancing. While this activity has not been specified by would be offered the service. the Board in Regulation Y as permissible for bank The Board has determined that, subject to certain holding companies, the Board has determined by order conditions to prevent a bank holding company or its that arranging equity financing subject to certain con- subsidiary from engaging in real estate brokerage, ditions is closely related to banking.1 development and syndication, equity financing is Notice of the application, affording interested per- closely related to banking.3 Applicant has committed sons an opportunity to submit comments on the pro- to engage in the equity financing activity subject to the posal has been duly published (48 Federal Register same conditions as those relied on by the Board 20796 and 22635 (1983)). The time for filing comments previously in finding that the activity is closely related has expired and the Board has considered the applica- to banking. tion and all comments received in light of the public Specifically, Applicant has committed that Compainterest factors set forth in section 4(c)(8) of the Act. ny's function will be limited to acting as an intermedi- Applicant is the sixth largest banking organization in ary between developers and investors to arrange fithe United States and the fifth largest in New York nancing. Neither Applicant nor any affiliate4 may with total consolidated assets of $48.3 billion.2 Its lead acquire an interest in any real estate project for which bank, Chemical Bank, accounts for 98.6 percent of Company arranges equity financing nor have any role Applicant's total consolidated assets. Applicant also in the development of the project. Neither Company operates a wholesale services bank in Wilmington, nor any affiliate shall participate in managing, develop- Delaware. In addition to its banking subsidiaries, ing or syndicating property for which Company ar- Applicant has 17 nonbank subsidiaries which provide a ranges equity financing, nor promote or sponsor the broad range of banking-related services. Applicant syndication of such property. Neither Company nor engages through Company in mortgage banking activi- any affiliate will provide financing to the investors in ties for which it has received Board approval under connection with an equity financing arrangement. The section 4(c)(8) of the Act and sections 225.4(a)(1) and fee Company receives for arranging equity financing (3) of Regulation Y. for a project shall not be based on profits derived, or to Applicant has applied to engage de novo through be derived, from the property and should not be larger Company in arranging equity financing on behalf of than the fee that would be charged by an unaffiliated institutional investors for commercial and industrial intermediary. The Board finds that Applicant's proincome-producing realty. Equity financing, as pro- posed equity financing activity will not constitute real posed by Applicant, involves arranging for the financ- estate brokerage, real estate development or real esing of commercial or industrial income-producing real tate syndication, provided the above-mentioned condiestate (including multi-family residential properties) tions and limitations are observed by Applicant and through the transfer of the title, control and risk of the Company. project from the owner/developer to one or more There is no evidence in the record to indicate that investors. Company would represent the owner/devel- Applicant's performance of equity financing would oper and would be paid a fee by the owner/developer result in any undue concentration of resources, defor this service. The service would be offered only as creased or unfair competition, unsound banking pracan alternative to traditional financing arrangements, tices, or other adverse effects. Based upon these and and Company would not solicit for properties to be other considerations reflected in the record, the Board sold. While Company would advertise its services as has determined that the balance of public interest an arranger of equity financing generally, it would not factors that the Board is required to consider under advertise specific properties for which it is seeking section 4(c)(8) of the Act is favorable. This determinafinancing, list or advertise properties for sale, or hold tion is conditioned upon Applicant's strictly limiting its equity financing activities to those described in 1. Trust Company of Georgia, 69 FEDERAL RESERVE BULLETIN 225 (1983); BancOhio Corporation, 69 FEDERAL RESERVE BULLETIN 34 3. BankAmerica Corporation, supra note 1, p. 649. (1983); BankAmerica Corporation, 68 FEDERAL RESERVE BULLETIN 4. The word "affiliate" as used in this Order is to have the meaning 647 (1982). it has in Section 23A of the Federal Reserve Act, as amended, which 2. All banking data are as of December 31, 1982. includes in its definition, a sponsored real estate investment trust. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 Federal Reserve Bulletin • August 1983 information furnished in connection with this applica- manufactured by Sperry New Holland, and; servicing tion and as provided in this Order. loans, leases and other extensions of credit for Sperry. Based on the foregoing, the Board has determined These proposed activities have been determined by that the application should be approved, and the the Board to be closely related to banking (12 C.F.R. application is hereby approved. This determination is §§ 225.4(a)(1), (3) and (6)). subject to the limitations set forth in this Order, the Notice of the application, affording opportunity for conditions set forth in section 225.4(c) of Regulation interested persons to submit comments and views, has Y, and the Board's authority to require such modifica- been duly published. The time for filing comments and tion or termination of the activities of a holding views has expired, and the Board has considered the company or any of its subsidiaries as the Board finds application and all comments received in light of the necessary to assure compliance with the provisions public interest factors set forth in section 4(c)(8) of the and purposes of the Act, and the Board's regulations Act. and orders issued thereunder, or to prevent evasion Citicorp is the largest commercial banking organizathereof. tion in the United States, with consolidated assets of The proposed activities shall be commenced not $128.3 billion.1 In addition, Citicorp engages in various later than three months after the effective date of this nonbanking activities through direct or indirect subsid- Order, unless such period is extended for good cause iaries. Citicorp's interest in the joint venture would be by the Board or by the Federal Reserve Bank of New held directly by Citicorp Industrial Credit, Inc. York acting pursuant to delegated authority. ("CIC"), which engages primarily in commercial lend- By Order of the Board of Governors, effective ing and leasing activities through 42 offices in 21 June 30, 1983. states. Neither Citicorp or any of its subsidiaries, including CIC, engage in farm equipment financing to Voting for this action: Vice Chairman Martin and Gover- a significant extent. nors Wallich, Partee, Teeters, Rice, and Gramley. Absent Sperry is the 54th largest domestic manufacturer in and not voting: Chairman Volcker. terms of asset size (with consolidated assets of $5.3 billion).2 Sperry is engaged internationally in the man- JAMES MCAFEE, ufacturing, marketing and servicing of computer sys- [SEAL] Associate Secretary of the Board tems and equipment, guidance and control equipment, farm equipment, and fluid power equipment. Sperry currently engages in finance company activities Citicorp, through its wholly-owned subsidiary, Sperry Financial New York, New York Corporation ("Sperry Financial"). These activities include the purchase, without recourse, of receivables Order Approving Establishment of Harrison Credit from Sperry and its Canadian subsidiaries and retail Corporation installment contracts from dealers of products manufactured by Sperry. Sperry Financial would continue Citicorp, New York, New York, a bank holding com- to provide dealer inventory financing for Sperry New pany within the meaning of the Bank Holding Compa- Holland dealers. However, Sperry proposes that Sperny Act ("Act"), has applied for the Board's approval ry Financial discontinue financing retail purchases or under section 4(c)(8) of the Act (12 U.S.C. § 1842(c)(8)) leases of Sperry New Holland farm equipment; the and section 225.4(b) of the Board's Regulation Y proposed joint venture subsidiary would replace Sper- (12 C.F.R. § 225.4(b)) to engage through a joint ven- ry Financial as an alternative source of retail fiture subsidiary, Harrison Credit Group, Inc., Harri- nancing. son, New York ("Harrison"), in commercial lending, In acting on Citicorp's application to engage in these lease financing and servicing activities pertaining to nonbanking activities through the proposed joint venfarm equipment manufactured by the Sperry New ture subsidiary, the Board must consider the standards Holland Division of Sperry Corporation, New York, enumerated in section 4(c)(8) of the Bank Holding New York ("Sperry"). The joint venture subsidiary Company Act. First, as noted above, the proposed would be owned equally by Citicorp Industrial Credit, activities are "closely related" to banking within the Inc., a wholly-owned subsidiary of Citicorp, and Sper- meaning of the Act. Second, the Board must deterry. Harrison would engage in the following activities: mine whether the performance of these activities by the making or acquiring for its own account or for the account of others of commercial loans and other extensions of credit for the retail purchase of equipment manufactured by Sperry New Holland; acting as 1. Unless otherwise indicated, all banking data are as of March 31, 1983. agent, broker or advisor in leasing farm equipment 2. Data as of March 31, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 649 the proposed joint venture subsidiary can reasonably With respect to the elimination of probable future be expected to produce benefits to the public that competition, the Board finds that Citicorp is not likely outweigh the possible adverse effects. (12 U.S.C. to independently provide farm equipment financing. § 1843(c)(8)). The record indicates that manufacturers of farm equip- Joint ventures by bank holding companies and com- ment generally provide financing of their products mercial firms present a potential for circumventing the through dealer-affiliated credit sources, and that a Bank Holding Company Act's fundamental objective successful provider of credit for farm equipment must of drawing a dividing line between banking and com- possess specialized expertise in farm credit financing merce. The linking of commercial and banking activi- and have an established relationship with farm equipties may also create the possibility of conflicts of ment dealers. Because Citicorp has no affiliation with interest and concentration of resources that the Act any farm equipment dealers and no special expertise in was designed to prevent, and impair or give the providing farm equipment financing, it does not appear appearance of impairing the ability of the banking likely that Citicorp would provide farm equipment organization to function effectively as an independent credit absent a co-operative effort with a farm equipand impartial provider of credit. Also, agreements to ment manufacturer. conduct a joint business must be carefully analyzed for Moreover, the elimination of probable future comany adverse effects on competition. petition is not generally significant where the market is Accordingly, the Board on several occasions has unconcentrated, the acquiree firm is not a dominant expressed its concern over the possible adverse effects competitor, and there are many potential entrants. In associated with joint venture proposals and has denied this instance, the record indicates that there are many two such applications where one of the co-venturers manufacturers and financiers of farm equipment in the was a commercial firm and the proposed activities United States. The record also indicates that the fourwere either currently engaged in by the proposed bank firm concentration ratio in the national market for farm holding company partner or were of a broad and equipment manufacturing is approximately 69.6 perdiversified scope.3 In this connection, the Board cent and that Sperry accounts for only 7 percent of this notes, in particular, that it previously approved a joint market. The distribution of market shares among other venture proposal between Deutsche Bank AG and Fiat major producers of farm equipment indicates that with Credit Services, Inc. to provide financing for Fiat the exception of the market leader, the market is products. In that case, the proposed financing activi- relatively evenly divided among six or seven major ties were limited in scope. Two years later the Board firms. The market for the provision of credit to finance denied a request by the same two companies to enlarge the purchase or lease of such equipment is also unconthe scope of activities of that joint venture to include centrated. general consumer finance, insurance brokerage, and Accordingly, the Board does not believe that conservicing of loans. {See, Deutsche Bank AG, 65 FED- summation of this joint venture would diminish the ERAL RESERVE BULLETIN 436 (1979) and 67 FEDERAL opportunities for other potential entrants or have a RESERVE BULLETIN 449 (1981)). significant adverse competitive effect in any market. It is in the light of these concerns that the Board has Similarly, the existence of substantial competition in reviewed this proposal. The Board has found that the the market for both farm equipment and farm credit as proposal is not inconsistent with the policy objectives well as the limited scope of this joint venture noted of the BHC Act and is consistent with the Board's below, indicates that concentration of resources is not previous decisions on joint ventures. a concern in this case. Competitive Effects Conflicts of Interest and Other Adverse Effects This proposal involves the establishment of a de novo There is no evidence in the record that consummation provider of farm equipment retail credit and Sperry of this proposal would result in anticompetitive prachas demonstrated that it is a matter of financial priority tices such as tying, conflicts of interests, reciprocity, that Sperry Financial discontinue that business. Con- etc.4 sequently, no existing competition would be eliminat- Moreover, the Board is satisfied that approval of ed between Harrison and the subsidiaries of Citicorp this application does not inherently present the opporor Sperry as a result of consummation of this proposal. 4. Voluntary tying is of concern only where the banking organization is dominant in the market for credit to finance the tied product. 3. Maryland National Corporation, 65 FEDERAL RESERVE BULLE- (Citicorp, 68 FEDERAL RESERVE BULLETIN 512 (1982)). As discussed, TIN 271 (1979) and Deutsche Bank, A.G., 67 FEDERAL RESERVE below the record does not show that Citicorp is a dominant lender in BULLETIN 449 (1981). any market where the joint venture would operate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 Federal Reserve Bulletin • August 1983 tunity or potential for conflicts of interest or other by the Board or by the Federal Reserve Bank of New anticompetitive practices. In reaching this conclusion, York, pursuant to delegated authority. the Board stresses the fact that the proposed activities By order of the Board of Governors effective (i.e., financing and servicing retail purchases and July 13, 1983. leases of farm equipment manufactured by the Sperry New Holland Division) are limited in scope. Harrison Voting for this action: Vice Chairman Martin and Goverwould only finance retail purchases of Sperry equip- nors Partee, Teeters, and Gramley. Absent and not voting: ment and would not engage in dealer financing of farm Chairman Volcker and Governors Wallich and Rice. equipment or in the retail or wholesale financing of other products manufactured, distributed or marketed JAMES MCAFEE, by Sperry. Moreover, there are no other joint venture [SEAL] Associate Secretary of the Board relationships extant between Citicorp and Sperry. In this situation, and in view of the fact that the subject of this joint venture is a relatively minor portion of the Mellon National Corporation, business of each joint venturer, the Board has no Pittsburgh, Pennsylvania reason to believe that Citicorp or Citibank would tend to favor Sperry in the provision of credit or other Order Approving Applications to Acquire Industrial services or would be inclined to deny or limit credit to Banks and Engage in Certain Insurance Activities Sperry's competitors. The Board finds that consummation of this proposal Mellon National Corporation, Pittsburgh, Pennsylvamay be expected to result in public benefits. In this nia, a bank holding company within the meaning of the instance, the proposed joint venturer would permit the Bank Holding Company Act, has applied for approvcontinuation of farm equipment programs that Sperry al under section 4(c)(8) of the Act (12 U.S.C. might otherwise discontinue, thus providing a readily § 1843(c)(8)) and section 225.4(b)(2) of the Board's accessible source of credit for farm equipment financ- Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire ing. The combination of Sperry's expertise in farm through its wholly-owned subsidiary, Mellon Financial financing and its dealer network with Citicorp's abili- Services Corporation, Globe Industrial Bank, Boulties to raise capital should assist in preserving Sperry's der, Colorado, and Centaur Industrial Bank, Lafaypresence as a viable competitor and employer in the ette, Colorado ("Companies"). Companies engage in farm machinery manufacturing industry. Moreover, the general business activities of industrial banks, Harrison is expected to become a self-funding vehicle, including making consumer and commercial loans and which should result in an increased level of available accepting time and savings deposits from consumers credit and increased competition in the farm equip- and small businesses. Companies will not offer dement credit market place. Finally, the Board notes and mand deposits, including transaction accounts. Applihas placed special emphasis in reviewing this proposal cant also proposes to engage through Companies in the on the fact that it represents a financing approach sale of life and accident and health insurance in designed to assist Sperry to achieve its financial prior- connection with extensions of credit by Companies. ities while still providing a source of credit to a farm Such activities, as qualified by the terms of Applieconomy that has been severely depressed, resulting cant's proposal, have been determined by the Board to in restricted access to new sources of credit. be closely related to banking (12 C.F.R. § 225.4(a)(1), Based on the foregoing facts of record, the Board (2), and (9)).1 has determined that the balance of the public interest Notice of the applications, affording opportunity for factors it is required to consider under section 4(c)(8) interested persons to submit comments, has been duly is favorable. Accordingly, the application is hereby published (48 Federal Register 22,636 (1983)). The approved. This determination is subject to the condi- time for filing comments has expired, and the applications set forth in section 225.4(c) of Regulation Y, and tions and all comments received have been considered to the Board's authority to require such modification in light of the public interest factors set forth in section or termination of the activities of a holding company or 4(c)(8) of the Act (12 U.S.C § 1843(c)(8)). any of its subsidiaries as the Board finds necessary to assure compliance with the provisions of and purposes of the Act, and the Board's regulations and orders issued thereunder, or to prevent evasion thereof. The proposed activity shall be commenced not later 1. Applicant has committed that upon consummation of the prothan three months after the effective date of this posed acquisitions, Companies will not accept deposits in transaction accounts, and all existing transaction accounts held by Companies will Order, unless such period is extended for good cause be immediately terminated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 651 Applicant controls two subsidiary banks with total gage, Inc., in the activity of arranging equity financing domestic deposits of approximately $15.1 billion.2 for certain types of income-producing properties. Applicant has applied to acquire Companies and there- While this activity has not been specified by the Board by engage in the nonbanking activities described as permissible for bank holding companies, the Board above. It has been determined that consummation of has determined by order that arranging equity financthis proposal can reasonably be expected to produce ing, subject to certain conditions, is closely related to benefits and would be in the public interest. Further- banking.1 more, there is no evidence in the record to indicate Notice of the application, affording interested perthat consummation of this proposal would lead to any sons an opportunity to submit comments on the proundue concentration of resources, unfair competition, posal has been published. The time for filing comconflicts of interest, unsound banking practices or ments and views has expired and the Board has other adverse effects. Having considered the record of considered the application and all comments received these applications in light of the factors contained in in light of the public interest factors set forth in section the Act, the Secretary of the Board has determined 4(c)(8) of the BHC Act. that the balance of the public interest factors to be Applicant, with consolidated assets of $18 billion,2 considered under section 4(c)(8) is favorable. On the has 87 commercial banking subsidiaries located in basis of these considerations, the applications are Minnesota, Wisconsin, North and South Dakota, approved. This determination is subject to the condi- Montana, Iowa, and Nebraska.3 Applicant, through its tions set forth in section 225.4(c) of Regulation Y and wholly-owned subsidiary Norwest Mortgage, Inc. to the Board's authority to require such modification ("Mortgage"), currently engages in mortgage banking or termination of the activities of a holding company or and servicing activities for which it received Board any of its subsidiaries as found necessary to assure approval under section 4(c)(8) of the BHC Act and compliance with the provisions and purposes of the sections 255.4(a)(1) and (3) of Regulation Y. Mortgage Act and the Board's regulations and orders issued is the third largest mortgage company in the United thereunder or to prevent evasion thereof. States with a loan servicing portfolio totalling $7.3 The transaction shall not be consummated later than billion as of December 3, 1982. It provides mortgage three months after the effective date of this Order, financing for residential, multifamily, and incomeunless such period is extended for good cause by the providing commercial and industrial real estate Board or by the Federal Reserve Bank of Cleveland projects. acting pursuant to delegated authority. In this application, Applicant proposes to engage de By order of the Secretary of the Board, acting novo through Mortgage in arranging equity financing pursuant to delegated authority for the Board of Gov- on behalf of institutional investors for commercial and ernors, effective July 6, 1983. industrial income-producing real property. Equity financing, as proposed by Applicant, involves arranging JAMES MCAFEE, for the financing of commercial or industrial income- [SEAL] Associate Secretary of the Board producing real estate through the transfer of the title, control, and risk of the project from the owner/ developer to one or more investors. Mortgage would Norwest Corporation, represent the owner/developer and would be paid a fee Minneapolis, Minnesota by the owner/developer for this service. The service would be offered only as an alternative to traditional Order Approving Application to Engage in Equity financing arrangements and Mortgage would not solic- Financing Activities it for properties to be sold, list or advertise properties for sale, or hold itself out or advertise as a real estate Norwest Corporation (formerly Northwest Bancor- broker or syndicator. This activity would be provided poration), Minneapolis, Minnesota, a bank holding only with respect to commercial or industrial incomecompany within the meaning of the Bank Holding producing real property and only when the financing Company Act ("BHC Act"), has applied for the Board's approval, under section 4(c)(8) of the BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.4(a) of the Board's Regulation Y (12 C.F.R. § 225.4(a)), to engage through its wholly-owned subsidiary, Norwest Mort- 1. BankAmerica Corporation, 68 FEDERAL RESERVE BULLETIN 647 (1982). 2. All banking data are as of March 31, 1983. 3. Applicant's banking subsidiaries located outside the state of its principal banking operations are "grandfathered" under section 3(d) 2. Banking data are as of March 31, 1983. of the BHC Act (12 U.S.C. § 1842(d)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 Federal Reserve Bulletin • August 1983 arranged exceeds $1 million. Only institutional or application is hereby approved.5 This determination is wealthy, professional individual investors would be subject to the limitations set forth in this Order, the offered the service. conditions set forth in section 225.4(c) of Regulation The Board has determined that, subject to certain Y, and the Board's authority to require such modificaconditions to prevent a bank holding company or its tion or termination of the activities of a holding subsidiary from engaging in real estate brokerage, company or any of its subsidiaries as the Board finds development and syndication, equity financing is necessary to assure compliance with the provisions of closely related to banking. Applicant has committed to and purposes of the Act, and the Board's regulations engage in the equity financing activity subject to the and orders issued thereunder, or to prevent evasion same conditions as those relied on by the Board thereof. previously in finding that the activity is closely related The proposed activities shall be commenced not to banking. later than three months after the effective date of this Specifically, Applicant has committed that Mort- Order, unless such period is extended for good cause gage's function will be limited to acting as intermedi- by the Board or by the Federal Reserve Bank of ary between developers and investors to arrange fi- Minneapolis acting pursuant to delegated authority. nancing. Neither Mortgage nor any affiliate4 may By order of the Board of Governors, effective acquire an interest in any real estate project for which July 26, 1983. Mortgage arranges equity financing nor have any role in the development of the project. Neither Mortgage Voting for this action: Chairman Volcker and Governors nor any of its affiliates shall participate in managing, Martin, Wallich, Teeters, Rice, and Gramley. Absent and not developing, or syndicating property for which Mort- voting: Governor Partee. gage arranges equity financing, nor promote or sponsor the development of such property. Neither Mort- JAMES MCAFEE, gage nor any affiliate will provide financing to the [SEAL] Associate Secretary of the Board investors in connection with an equity financing arrangement. The fee Mortgage receives for arranging equity financing for a project shall not be based on Orders Under Section 3 and 4 of Bank Holding profits derived, or to be derived, from the property Company Act and should not be larger than the fee that would be charged by an unaffiliated intermediary. The Board Midlantic Banks, Inc., finds that Applicant's proposed equity financing activ- Edison, New Jersey ity will not constitute real estate brokerage, real estate development, or real estate syndication, provided the Order Approving Merger of Bank Holding above-mentioned conditions and limitations are ob- Companies and Acquisition of Mortgage Company served by Applicant and Mortgage. There is no evidence in the record to indicate that Midlantic Banks, Inc., Edison, New Jersey, a bank Applicant's engaging in the proposed activity would holding company within the meaning of the Bank lead to any undue concentration of resources, de- Holding Company Act ("Act")(12 U.S.C. § 1841 et creased or unfair competition, unsound banking prac- seq.), has applied for the Board's approval under tices, or other adverse effects. Based upon the forego- section 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) to ing and other considerations reflected in the record, merge with Greater Jersey Bancorp, West Paterson, the Board has determined that the balance of the New Jersey ("Greater Jersey"), also a bank holding public interest factors that the Board is required to company within the meaning of the Act. As a result of consider under section 4(c)(8) of the Act is favorable. the merger, Applicant will acquire control of Greater This determination is conditioned upon Applicant's Jersey's two bank subsidiaries, New Jersey Bank, strictly limiting its equity financing activities to those N.A., West Paterson, New Jersey, and Anthony described in information provided in connection with Wayne Bank, Wayne, New Jersey. this application and as provided in this Order. Applicant has also applied under section 4(c)(8) of Based on the foregoing, the Board has determined the Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b) of that the application should be approved, and the 5. The Board hereby delegates to the Federal Reserve Bank of 4. The word "affiliate" as used in this Order is to have the meaning Minneapolis authority to approve future applications by Applicant to it has in Section 23A of the Federal Reserve Act, as amended, which expand its equity financing activities de novo, subject to the terms of includes in its definition, a sponsored real estate investment trust. this Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 653 the Board's Regulation Y (12 C.F.R. § 225.4(b)) to New York, Greater Newark, Paterson, Morristown, acquire Greater Jersey's nonbank subsidiary, Greater and Newton banking markets.4 Jersey Mortgage Company, also of West Paterson Applicant is the 27th largest of 104 banking organi- ("Mortgage Company").1 Mortgage Company en- zations in the Metropolitan New York banking market gages in the activities of servicing loans and other and holds 0.3 percent of the total deposits in commerextensions of credit.2 These activities have been deter- cial banks in the market.5 Greater Jersey is the 39th mined by the Board to be closely related to banking largest banking organization and holds 0.1 percent of and permissible for bank holding companies the total deposits in commercial banks in the market. (12 C.F.R. § 225.4(a)(3)). After consummation of its proposal, Applicant would Notice of the applications, affording opportunity for become the 19th largest commercial bank and hold 0.4 interested persons to submit comments and views, has percent of the total deposits in commercial banks in been given in accordance with sections 3 and 4 of the the market. The Metropolitan New York banking Act (48 Federal Register 19,936 (1983)). The time for market is unconcentrated, with the top four banking filing comments and views has expired, and the Board organizations controlling 54.6 percent of the total has considered the applications and all comments deposits in commercial banks in the market and a received in light of the factors set forth in section 3(c) Herfindahl-Hirschman Index ("HHI") of 979.6 After of the Act (12 U.S.C. § 1842(c)) and the considerations consummation of Applicant's proposal, the HHI specified in section 4(c)(8) of the Act (12 U.S.C. would increase by less than one point. Accordingly, § 1843(c)(8)). consummation of this proposal would have no signifi- Applicant, with 6 subsidiary banks, is the second cant effect on existing competition in the Metropolitan largest banking organization in New Jersey with total New York banking market. deposits of $2.8 billion, representing 8.7 percent of the Applicant is the second largest of 37 commercial total deposits in commercial banks in the state.3 Great- banking organizations in the Greater Newark banking er Jersey, with 2 subsidiary banks, is the 11th largest market and holds 16.3 percent of the total deposits in banking organization in New Jersey, with total depos- commercial banks in the market. Greater Jersey is the its of $885.3 million, representing 2.8 percent of the 25th largest banking organization and holds 0.4 pertotal deposits in commercial banks in the state. Upon cent of the total deposits in commercial banks in the consummation of this proposal and the planned dives- market. The Greater Newark banking market is not titure, Applicant would become the largest commer- highly concentrated, with a four-firm concentration cial banking organization in New Jersey, controlling ratio of 58.7 percent and an HHI of 1,079. Upon total deposits of $3.68 billion, representing 11.6 per- consummation of this proposal, Applicant's share of cent of the total deposits in commercial banks in the total deposits in commercial banks in the market state, and the share of deposits held by the four largest would increase slightly, to 16.7 percent; the HHI commercial banking organizations in New Jersey would increase to 1,092, and Applicant's rank in the would increase from 33.1 percent to 35.9 percent. market would be unchanged. In the Board's view, Thus, New Jersey is and would remain one of the least consummation of this proposal would have no significoncentrated states in the United States in terms of cant effect on existing competition in the Greater banking resources. Accordingly, it is the Board's view Newark banking market. that consummation of this proposal would not have a significant adverse effect on the concentration of com- 4. The Metropolitan New York banking market is defined to mercial banking resources in New Jersey. include New York City, Nassau, Putnam, Rockland, Westchester, and western Suffolk Counties, New York; the northeastern two-thirds Subsidiary banks of Applicant compete directly with of Bergen County and eastern Hudson County, New Jersey; and subsidiary banks of Greater Jersey in the Metropolitan southwestern Fairfield County, Connecticut. The Greater Newark banking market is defined to include Essex County and adjacent portions of Bergen, Hudson, Morris and Union Counties, New Jersey. The Paterson banking market is defined to include Passaic County and 1. Greater Jersey has a second nonbank subsidiary, Middle States adjacent portions of Bergen and Morris Counties, New Jersey. The Leasing Corporation, West Paterson, New Jersey ("Leasing Corpora- Morristown banking market is defined to include the western twotion"), which is engaged in leasing activities. Applicant has stated that thirds of Morris County, except for the townships of Mount Olive and it intends to liquidate Leasing Corporation either simultaneously with Washington, and includes the townships of Bernards and Bernardsor immediately following consummation of its proposal. On this basis, ville in Somerset County, New Jersey. The Newton banking market is Applicant is not required to apply under section 4(c)(8) of the Act to defined to include Sussex County and adjacent portions of Warren acquire Leasing Corporation. County, New Jersey. 2. Mortgage Company is currently authorized to engage in both 5. Data for individual markets are as of June 30, 1981. lending and loan servicing activities. Applicant has indicated that it 6. Under the Department of Justice's Merger Guidelines, the intends to liquidate Mortgage Company within one year after consum- Department is unlikely to challenge any merger in a market where the mation of this proposal, and that Mortgage Company will engage only post-merger HHI is below 1000 and, in a market where the postin loan servicing activities until it is liquidated. merger HHI is between 1000 and 1800, the Department is unlikely to 3. All banking and market data are as of June 30, 1982, unless challenge a merger that produces an increase in the HHI of less than otherwise indicated. 100 points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 Federal Reserve Bulletin • August 1983 Applicant is the 22nd largest of 24 commercial Although consummation of this transaction would banking organizations in the Paterson banking market eliminate some existing competition in the Newton and holds 0.5 percent of the total deposits in commer- banking market, the competitive effects of this transcial banks in the market. Greater Jersey is the second action are mitigated by certain facts of record. After largest banking organization and holds 17.6 percent of consummation of this proposal, numerous banking the total deposits in commercial banks in the market. organizations, including three of the state's largest The Paterson banking market is not highly concentrat- commercial banking organizations, would remain in ed, with a four-firm concentration ratio of 61.6 percent the market. In a number of previous cases, the Board and an HHI of 1,111. Upon consummation of this has indicated that the competitive influence in a marproposal, Applicant would become the second largest ket of the largest bank holding companies in a state banking organization in the market and its market may be greater than what would be expected based on share would increase to 18.1 percent of the total their market shares alone, especially with respect to deposits in commercial banks in the market. The four- their ability to serve local commercial customers.8 firm concentration ratio would increase to 62 percent In addition, the facts of record indicate that the and the HHI would increase to 1,128. Accordingly, Newton market contains eight thrift institutions that consummation of this proposal would have no signifi- control approximately 29 percent of the total deposits cant effect on existing competition in the Paterson in depository institutions in the market. Under provibanking market. sions of the recently enacted Garn-St Germain Deposi- Applicant is the seventh largest of 14 commercial tory Institutions Act of 1982, the commercial lending banking organizations in the Morristown banking mar- powers of federal thrift institutions have been signifiket and holds 5.3 percent of the total deposits in cantly expanded.9 Thus, the Board has considered the commercial banks in the market. Greater Jersey is the presence of thrift institutions in the Newton banking 11th largest banking organization and holds 1.0 per- market as a significant factor in assessing the competicent of the total deposits in commercial banks in the tive effects of this transaction. market. The Morristown banking market is not highly Finally, Applicant has stated that it intends to divest concentrated, with a four-firm concentration ratio of Greater Jersey's sole office in the Newton banking 64.1 percent and an HHI of 1,330. Upon consumma- market by selling it to the National Bank of Sussex tion of this proposal, Applicant's rank in the market County, Branchville, New Jersey and that that bank is would remain unchanged and its market share would in the process of seeking the required regulatory increase to 6.3 percent of the total deposits in commer- approval of the Comptroller of the Currency to acquire cial banks in the market. The four-firm concentration Greater Jersey's Newton office. Applicant's divestiratio would remain unchanged and the HHI would ture of that office would eliminate any adverse effects increase slightly, to 1,340. In the Board's view, con- on existing competition that this merger might othersummation of this proposal would have no significant wise produce in the Newton banking market. Based on competitive effects in the Morristown banking market. the above and other facts of record, the Board con- Applicant is the second largest of 12 commercial cludes that consummation of this proposal would have banking organizations in the Newton banking market no significant effect on existing competition in the and holds 21.8 percent of the total deposits in commer- Newton banking market.10 cial banks in the market. Greater Jersey is the ninth Greater Jersey does not operate in any market largest commercial banking organization in the mar- where Applicant is not represented. Applicant operket, holding 2.3 percent of the total deposits in com- ates in the Philadelphia-Camden, Vineland, and Atlanmercial banks in the market. The Newton banking tic City banking markets, where Greater Jersey is not market is moderately concentrated according to the represented. The Board has considered the effects of Department of Justice guidelines, with a four-firm Applicant's proposal on probable future competition concentration ratio of 77.1 percent and an HHI of 1,637. Upon consummation of this proposal, absent any planned divestiture, Applicant would become the 8. First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983); United Bank Corporation of New York, 67 largest banking organization in the market and hold FEDERAL RESERVE BULLETIN 358 (1981); First Bancorporation of 24.1 percent of the total deposits in commercial banks Ohio, 67 FEDERAL RESERVE BULLETIN 799 (1981). in the market. The four-firm concentration ratio in the 9. Title III 96 Stat. 1469, 1499—1500. 10. Where a divestiture is intended to cure substantial anticompetimarket would increase to 79.4 percent and the HHI tive effects of a merger, the Board's policy requires that the divestiwould increase by 100 points to 1,737.7 ture occur prior to or contemporaneously with the merger. (Barnett Banks of Florida, Inc. (First Marine Banks) 68 FEDERAL RESERVE BULLETIN 190 (1982)). Because the effect of this transaction in the Newton banking market would not be substantially anticompetitive, 7. This increase in the HHI makes the transaction one that the the Board does not believe that the divestiture of Greater Jersey's Department of Justice is more likely than not to challenge under its Newton bank must be effected prior to or contemporaneously with Merger Guidelines. consummation of Applicant's proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 655 in these markets and has considered Applicant's pro- related investment management services. Thus, conposal in light of its proposed guidelines for assessing siderations relating to the convenience and needs of the competitive effects of market extension mergers the communities served lend some weight toward and acquisitions." approval and outweigh any adverse competitive ef- Because of its size and financial and managerial fects that might result from consummation of this resources, Greater Jersey appears to be a probable proposal. future entrant into these markets. However, none of Applicant has also applied to acquire Greater Jerthese markets is highly concentrated, as measured by sey's existing mortgage lending subsidiary, Mortgage the Board's guidelines, and there are numerous proba- Company, which is in the process of liquidation. ble future entrants into the Vineland banking market. However, Applicant intends to continue the loan ser- On the basis of the above and other facts of record, the vicing operations of Mortgage Company for approxi- Board concludes that consummation of this proposal mately a year following consummation of its proposal would not have a substantial adverse effect on proba- pending repayment of certain outstanding loans made ble future competition in these markets. by Mortgage Company. Inasmuch as Mortgage Com- As noted above, Greater Jersey has a subsidiary pany will remain inactive except to collect its current banking office in the Newton banking market that will outstanding loans, Applicant's proposal to acquire be divested upon consummation of this proposal. Mortgage Company would not decrease competition in While this divestiture eliminates any adverse effect this line of commerce in New Jersey where Mortgage this proposal might have on existing competition, the Company operates. Board must examine the proposal for any adverse There is no evidence in the record to indicate that effect upon probable future competition in this market. approval of this proposal would result in other adverse Because of its size, its financial and managerial re- effects, such as undue concentration of resources, sources, and the fact that it had already entered the unfair competition, conflicts of interests or unsound Newton banking market, Greater Jersey is viewed as a banking practices. Accordingly, the Board has deterlikely probable future entrant into this market. How- mined that the balance of the public interest factors it ever the Newton market is not highly concentrated, as must consider under section 4(c)(8) of the Act is measured by the Board's guidelines, and there are consistent with approval of the application. numerous probable future entrants into this market. Based on the foregoing and other considerations Therefore, the Board does not view the elimination of reflected in the record, the Board has determined that Greater Jersey as a probable future entrant into this the applications under sections 3(a)(5) and 4(c)(8) of market as substantially anticompetitive. In light of the Act should be and are hereby approved. The these facts and other facts of record, the Board merger shall not be consummated before the thirtieth concludes that consummation of this proposal would calendar day following the effective date of this Order, not have a significant adverse effect on probable future and neither the merger nor the acquisition of Mortgage competition in any of the markets involved in this Company shall be made later than three months after proposal. the effective date of this Order unless such period is The financial and managerial resources of Applicant extended for good cause by the Board or the Federal and its subsidiaries are considered generally satisfac- Reserve Bank of New York, acting pursuant to deletory, and their future prosoects appear favorable. gated authority. Acquisition of Mortgage Company is Accordingly, considerations relating to banking fac- subject to the conditions set forth in section 225.4(c) of tors are regarded as consistent with approval. Con- Regulation Y, and to the Board's authority to require summation of the proposal would benefit Greater such modification or termination of the activities of a Jersey's customers because they would be able to bank holding company or any of its subsidiaries as the participate in Applicant's proprietary Automated Tell- Board finds necessary to assure compliance with the er Machine network and Electronic Fund Transfer provisions and purposes of the Act and the Board's systems. In addition, they would have access to Appli- regulations and orders issued thereunder, or to precant's extensive international banking experience and vent evasion thereof. facilities. Further, Greater Jersey's customers would By order of the Board of Governors, effective have access to Applicant's broad range of trust and July 6, 1983. 11. "Proposed Policy Statement of the Board of Governors of the Voting for this action: Chairman Volcker and Governors Federal Reserve System For Assessing Competitive Factors Under Martin, Wallich, Partee, Rice, and Gramley. Voting against the Bank Merger Act and the Bank Holding Company Act." (47 this action: Governor Teeters. Federal Register 9017 (March 3, 1982)). Although the proposed policy statement has not been adopted by the Board, the Board is using the WILLIAM W. WILES, policy guidelines in its analysis of the effects of a proposal on probable future competition. [SEAL] Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 Federal Reserve Bulletin • August 1983 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During July 1983 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) Fifth Third Bancorp, The Peoples National Bank of Wapa- July 27, 1983 Cincinnati, Ohio koneta, Wapakoneta, Ohio NBSC Corporation, The National Bank of South Carolina, July 6, 1983 Sumter, South Carolina Sumter, South Carolina Paris Bancshares, Inc., Paris National Bank, July 12, 1983 Paris, Missouri Paris, Missouri Portis Bancshares, Inc., First State Bank, July 15, 1983 Portis, Kansas Portis, Kansas Valley Center Bancshares, Inc. Arkansas Valley State Bank, July 11, 1983 Valley Center, Kansas Valley Center, Kansas 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 Ameribanc, Inc., Manufacturers Bancorp, Inc., Kansas City June 30, 1983 St. Joseph, Missouri St. Louis, Missouri American Southwest Banc- American Bank of Commerce Dallas July 22, 1983 shares, Inc., East, N.A., El Paso, Texas El Paso, Texas Anchor Bancorp, Inc., West St. Paul State Bank, Minneapolis July 19, 1983 Wayzata, Minnesota West St. Paul, Minnesota Arkansas State Bankshares, Arkansas State Bank, St. Louis July 8, 1983 Inc., Clarksville, Arkansas Clarksville, Arkansas Armstrong Bancshares, Inc., Florence State Bank, Kansas City July 8, 1983 Florence, Kansas Florence, Kansas Benton Bancshares, Inc., Benton Banking Company, Atlanta June 24, 1983 Benton, Tennessee Benton, Tennessee Bridgeview Bancorp, Inc., Bridgeview Bank and Trust Chicago July 1, 1983 Bridgeview, Illinois Company, Bridgeview, Illinois B.S.H.C.P. Corporation, Bank of Shelby ville, St. Louis July 11, 1983 Shelbyville, Kentucky Shelby ville, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 657 Section 3—Continued r. , Reserve Effective Applicant Ba nkw(s) ^ ^ CB&T Bancshares, Inc., Bank of Hazlehurst, Atlanta June 21, 1983 Columbus, Georgia Hazlehurst, Georgia Centex Community Bankshares, Citizens National Bank of Kil- Dallas July 1, 1983 Inc., leen, Killeen, Texas Killeen, Texas Cherokee Bancshares, Inc., Cherokee State Bank of St. Paul, Minneapolis July 1, 1983 St. Paul, Minnesota St. Paul, Minnesota Citizens Holding Company, Citizens Bank & Trust Company, Chicago July 22, 1983 Park Ridge, Illinois Park Ridge, Illinois Commercial Bank Investment Century Bank Southeast, N.A., Kansas City June 24, 1983 Company, Englewood, Colorado Denver, Colorado Century Bank North, Denver, Colorado Commercial State Holding Com- Commercial State Bank, Kansas City July 15, 1983 pany, Inc., Republican City, Nebraska Republican City, Nebraska Community Bancorp., Inc., Community Bank, N.A., Kansas City June 21, 1983 Northglenn, Colorado Northglenn, Colorado Dauphin Deposit Corporation, Bancorp of Pennsylvania, Philadelphia July 13, 1983 Harrisburg, Pennsylvania Reading, Pennsylvania D.C. Bancorp, Dove Creek State Bank, Kansas City July 1, 1983 Dove Creek, Colorado Dove Creek, Colorado Deport Financial Company, Deport Bancshares, Inc., Dallas July 20, 1983 Deport, Texas Deport, Texas The First National Bank of Deport, Deport, Texas First Bancorporation of Ohio, Elyria Savings and Trust National Cleveland July 13, 1983 Akron, Ohio Bank, Elyria, Ohio The First Jefferson Company, The Jefferson Company, Dallas July 15, 1983 Jefferson, Texas Jefferson, Texas First National Bank of Jefferson, Jefferson, Texas First Lacon Corp., The First National Bank of Chicago June 24, 1983 Lacon, Illinois Lacon, Lacon, Illinois First Oak Brook Bancshares, Oak Brook Bank, Chicago July 13, 1983 Inc., Oak Brook, Illinois Oak Brook, Illinois First National Bank and Trust Company of Oak Brook, Oak Brook, Illinois, Metropolitan Trust & Savings Bank of Addison, Addison, Illinois First Western Bancshares, Inc., Western Bank, Dallas July 7, 1983 Duncanville, Texas Duncanville, Texas Fort Madison Financial Com- Iowa State Bank, Chicago July 25, 1983 pany, Fort Madison, Iowa Fort Madison, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 Federal Reserve Bulletin • August 1983 Section 3—Continued * + . Reserve Effective Applicant DB anwk(s) _ . , Bank d a4t e Fort Riley Bancshares, Fort Riley National Bank, Kansas City June 24, 1983 Fort Riley, Kansas Fort Riley, Kansas Granite Holding Corporation, Granite Falls State Bank, Minneapolis July 15, 1983 Granite Falls, Minnesota Granite Falls, Minnesota Great Mid-West Financial Com- University Bank and Trust Com- Chicago June 24, 1983 pany, pany, Ames, Iowa Ames, Iowa Hays State Bankshares, Inc., Hays State Bank, Kansas City July 15, 1983 Hays, Kansas Hays, Kansas Illini Financial Corp., Community Bank of Galesburg, Chicago June 24, 1983 Galesburg, Illinois Galesburg, Illinois Independence Bank Group, The Brown National Bank of Chicago July 22, 1983 Inc., Kenosha, Waukesha, Wisconsin Kenosha, Wisconsin Indiana United Bancorp, Union Bank and Trust Company Chicago June 20, 1983 Greensburg, Indiana of Greensburg, Greensburg, Indiana Keene Bancorp, Inc., First State Bank, Dallas July 15, 1983 Keene, Texas Keene, Texas LBT Bancshares, Inc., Litchfield Bank and Trust Com- St. Louis July 19, 1983 Litchfield, Illinois pany, Litchfield, Illinois Manteno Bancshares, Inc., Manteno State Bank, Chicago July 6, 1983 Manteno, Illinois Manteno, Illinois Mercantile Bancorporation Inc., Wright County Bank, St. Louis June 28, 1983 St. Louis, Missouri Hartville, Missouri Miami Citizens Bancorp., The Miami Citizens National Cleveland July 20, 1983 Piqua, Ohio Bank and Trust Co., Piqua, Ohio Munden Bankshares, Inc., Munden State Bank, Kansas City July 14, 1983 Munden, Kansas Munden, Kansas NBG Holding Company, National Bank of Georgia, Atlanta July 1, 1983 Atlanta, Georgia Atlanta, Georgia National Bancshares Corpora- Coastal Bend Bancshares, Inc., Dallas July 18, 1983 tion of Texas, Robstown, Texas San Antonio, Texas State National Bank of Robstown, Robstown, Texas Northeastern Bancorp, Inc., The Cement National Bank, Philadelphia June 17, 1983 Scranton, Pennsylvania Northampton, Pennsylvania Old Second Bancorp, Inc., First Security Bank of Aurora, Chicago July 20, 1983 Aurora, Illinois Aurora, Illinois Ore Bancorporation, First National Bank of Leadville, Kansas City July 14, 1983 Lead ville, Colorado Leadville, Colorado Palmer National Bancorp, Inc., Palmer National Bank, Richmond July 19, 1983 Washington, D.C. Washington, D.C. Pathfinder Bancshares, Inc., The Fremont National Bank and Kansas City July 8, 1983 Fremont, Nebraska Trust Company, Fremont, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 659 Section 3—Continued „ . Reserve Effective w Applicant Bank(s) Bank date Peoples Bancshares of Hay- The Peoples National Bank of Minneapolis July 18, 1983 ward, Inc., Hay ward, Hay ward, Wisconsin Hayward, Wisconsin Raleigh Bankshares, Inc., Bank of Raleigh, Richmond July 1, 1983 Beckley, West Virginia Beckley, West Virginia Schooler Bancshares, Inc., Hartford-Carlisle Savings Bank, Chicago June 24, 1983 Carlisle, Iowa Carlisle, Iowa Southeastern Banking Corpo- The Darien Bank, Atlanta July 6, 1983 ration, Darien, Georgia Folkston, Georgia SouthTrust Corporation, The First Bank of Alabaster, Atlanta June 27, 1983 Birmingham, Alabama Alabaster, Alabama Spartan Bankcorp, Inc., East Lansing State Bank, Chicago June 30, 1983 East Lansing, Michigan East Lansing, Michigan State Banco, Ltd., The State Bank, Chicago July 22, 1983 Spirit Lake, Iowa Spirit Lake, Iowa Texas Bancorporation, Inc., The National Bank of Texas at Dallas July 21, 1983 Dallas, Texas Fort Worth, Fort Worth, Texas The First National Bank of Weatherford, Weatherford, Texas Weatherford Bancshares, Inc., Weatherford, Texas TexFirst Bancshares, Inc., Industrial Bank, Dallas July 22, 1983 Houston, Texas Houston, Texas Northwest Bank and Trust, Houston, Texas Thompson Financial, Ltd., Texas Security Bancshares, Inc., Dallas June 29, 1983 Fort Worth, Texas Fort Worth, Texas Thornton Bancshares, Inc., The First State Bank of Thorn- Chicago July 5, 1983 Thornton, Iowa ton, Iowa, Thornton, Iowa United Bankshares, Inc., The Parkersburg National Bank, Richmond July 22, 1983 Parkersburg, West Virginia Parkersburg, West Virginia Union Central National Bank, Vienna, West Virginia Valley Bank, Parkersburg, West Virginia University Bancshares, Inc., University National Bank, Chicago ' July 21, 1983 Milwaukee, Wisconsin Milwaukee, Wisconsin Victoria Bankshares, Inc., Bastrop Bancshares, Inc., Dallas July 20, 1983 Victoria, Texas Bastrop, Texas Citizens State Bank of Bastrop, Bastrop, Texas Villa Grove Bancshares, Inc., First Villa Grove Bancorp, Inc., Chicago July 20, 1983 Villa Grove, Illinois Villa Grove, Illinois The First National Bank of Villa Grove, Villa Grove, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 Federal Reserve Bulletin • August 1983 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date WB Financial Corp., Wayne Bank, Chicago July 12, 1983 Wayne, Michigan Wayne, Michigan Worth Bancorporation, Inc. Lake Worth National Bank, Dallas July 1, 1983 Fort Worth, Texas Fort Worth, Texas Section 4 Nonbanking Reserve Effective Applicant company Bank date Alaska Pacific Bancorporation, Pentek Leasing, Inc., San Francisco July 11, 1983 Anchorage, Alaska San Jose, California Central Pacific Corporation, Executive Appraisers, Inc., San Francisco, July 14, 1983 Bakersfield, California Phoenix, Arizona First Interstate Bancorp, First Interstate Mortgage Com- San Francisco July 1, 1983 Los Angeles, California pany of Texas, Houston, Texas First University Corporation, First University Service Corpo- Dallas July 6, 1983 Houston, Texas ration, Houston, Texas Sections 3 and 4 Bank(s)/ Nonbanking Reserve Effective Applicant company Bank date City National Bancshares, Inc. The City National Bank, Kansas City July 1, 1983 Greeley, Nebraska Greeley, Nebraska Persia Bancorp, Inc., Home Savings Bank, Chicago June 27, 1983 Woodbine, Iowa Persia, Iowa ORDERS APPROVED UNDER BANK MERGER ACT By the Board of Governors Applicant Bank Efffctive date United Virginia Bank, Bankers Trust Company, July 12, 1983 Richmond, Virginia Rocky Mount, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Bank One of Mansfield, The Peoples Bank, Cleveland July 8, 1983 Mansfield, Ohio Mount Gilead, Ohio Financial Growth Systems, Inc. Citizens First National Bank of Atlanta July 8, 1983 Inverness, Florida Hernando County, Hernando County, Florida Ottawa County Banking Com- The Genoa Banking Company, Cleveland June 23, 1983 pany, Genoa, Ohio Genoa, Ohio Western Bank, Community Bank, Minneapolis June 18, 1983 Sioux Falls, South Dakota Hartford, South Dakota PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits Charles G. Vick v. Paul A. Volcker, et al.,filed March against the Federal Reserve Banks in which the Board 1982, U.S.D.C. for the District of Columbia. of Governors is not named a party. Jolene Gustafson v. Board of Governors, filed March 1982, U.S.C.A. for the Fifth Circuit. Independent Insurance Agents of America, Inc. and Edwin F. Gordon v. Board of Governors, et al., filed Independent Insurance Agents of Missouri, Inc. v. October 1981, U.S.C.A. for the Eleventh Circuit Board of Governors,filed June 1983, U.S.C.A. for (two consolidated cases). the Eighth Circuit (two cases). Allen Wolf son v. Board of Governors, filed September The Committee for Monetary Reform, et al., v. Board 1981, U.S.D.C. for the Middle District of Florida. of Governors, filed June 1983, U.S.D.C. for the Bank Stationers Association, Inc., et al. v. Board of District of Columbia. Governors, filed July 1981, U.S.D.C. for the North- Dakota Bankshares, Inc.\. Board of Governors, filed ern District of Georgia. May 1983, U.S.C.A. for the Eighth Circuit. Public Interest Bounty Hunters v. Board of Gover- Jet Courier Services, Inc., et al. v. Federal Reserve nors, et al., filed June 1981, U.S.D.C. for the Bank of Atlanta, et al., filed February 1983, Northern District of Georgia. U.S.C.A. for the Sixth Circuit. First Bank & Trust Company v. Board of Governors, Securities Industry Association v. Board of Gover- filed February 1981, U.S.D.C. for the Eastern Disnors, et al., filed February 1983, U.S.C.A. for the trict of Kentucky. Second Circuit. 9 to 5 Organization for Women Office Workers v. Flagship Banks, Inc. v. Board of Governors, filed Board of Governors, filed December 1980, January 1983, U.S.D.C. for the District of Colum- U.S.D.C. for the District of Massachusetts. bia. Securities Industry Association v. Board of Gover- Flagship Banks, Inc. v. Board of Governors, filed nors, et al., filed October 1980, U.S.C.A. for the October 1982, U.S.D.C. for the District of Colum- District of Columbia. bia. A. G. Becker, Inc. v. Board of Governors, et al., filed Association of Data Processing Service Organiza- October 1980, U.S.C.A. for the District of Columtions, Inc., et al. v. Board of Governors, filed bia. August 1982, U.S.C.A. for the District of Columbia. A. G. Becker, Inc. v. Board of Governors, et al., filed Richter v. Board of Governors, et al., filed May 1982, August 1980, U.S.C.A. for the District of Columbia. U.S.D.C. for the Northern District of Illinois. Berkovitz, et al. v. Government of Iran, et al., filed Wyoming Bancorporation v. Board of Governors, filed June 1980, U.S.D.C. for the Northern District of May 1982, U.S.C.A. for the Tenth Circuit. California. First Bancorporation v. Board of Governors, filed April 1982, U.S.C.A. for the Tenth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, Reserve A20 All reporting banks Bank credit A21 Banks with assets of $1 billion or more A5 Reserves and borrowings of depository A22 Banks in New York City institutions A23 Balance sheet memoranda A6 Federal funds and repurchase agreements of A24 Branches and agencies of foreign banks large member banks A25 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS FINANCIAL MARKETS A7 Federal Reserve Bank interest rates A8 Reserve requirements of depository institutions A26 Commercial paper and bankers dollar A9 Maximum interest rates payable on time and acceptances outstanding savings deposits at federally insured institutions A27 Prime rate charged by banks on short-term All Federal Reserve open market transactions business loans A27 Terms of lending at commercial banks A28 Interest rates in money and capital markets FEDERAL RESERVE BANKS A29 Stock market—Selected statistics A30 Selected financial institutions—Selected assets A12 Condition and Federal Reserve note statements and liabilities A13 Maturity distribution of loan and security holdings FEDERAL FINANCE MONETAR Y AND CREDIT AGGREGATES A31 Federal fiscal and financing operations A32 U.S. Budget receipts and outlays A14 Aggregate reserves of depository institutions A33 Federal debt subject to statutory limitation and monetary base A33 Gross public debt of U.S. Treasury—Types and A15 Money stock measures and components ownership A16 Bank debits and deposit turnover A34 U.S. government securities dealers— A17 Loans and securities of all commercial banks Transactions, positions, and financing A35 Federal and federally sponsored credit agencies—Debt outstanding COMMERCIAL BANKING INSTITUTIONS A18 Major nondeposit funds A19 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 • August 1983 SECURITIES MARKETS AND A55 Foreign official assets held at Federal Reserve CORPORATE FINANCE Banks A56 Foreign branches of U.S. banks—Balance sheet A36 New security issues—State and local data governments and corporations A58 Selected U.S. liabilities to foreign official A37 Open-end investment companies—Net sales and institutions asset position A37 Corporate profits and their distribution A38 Nonfinancial corporations—Assets and REPORTED BY BANKS IN THE UNITED STATES liabilities A38 Total nonfarm business expenditures on new A58 Liabilities to and claims on foreigners plant and equipment A59 Liabilities to foreigners A39 Domestic finance companies—Assets and A61 Banks' own claims on foreigners liabilities and business credit A62 Banks' own and domestic customers' claims on foreigners A62 Banks' own claims on unaffiliated foreigners REAL ESTATE A63 Claims on foreign countries—Combined domestic offices and foreign branches A40 Mortgage markets A41 Mortgage debt outstanding REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES CONSUMER INSTALLMENT CREDIT A64 Liabilities to unaffiliated foreigners A42 Total outstanding and net change A65 Claims on unaffiliated foreigners A43 Terms SECURITIES HOLDINGS AND TRANSACTIONS FLOW OF FUNDS A66 Foreign transactions in securities A44 Funds raised in U.S. credit markets A67 Marketable U.S. Treasury bonds and notes— A45 Direct and indirect sources of funds to credit Foreign holdings and transactions markets INTEREST AND EXCHANGE RATES Domestic Nonfinancial Statistics A67 Discount rates of foreign central banks A46 Nonfinancial business activity—Selected A68 Foreign short-term interest rates measures A68 Foreign exchange rates A46 Output, capacity, and capacity utilization A47 Labor force, employment, and unemployment A69 Guide to Tabular Presentation, A48 Industrial production—Indexes and gross value Statistical Releases, and Special A50 Housing and construction Tables A51 Consumer and producer prices A52 Gross national product and income A53 Personal income and saving Special Tables International Statistics A70 Commercial bank assets and liabilities, March 31, 1983 A54 U.S. international transactions—Summary A76 Assets and liabilities of U.S. branches and A55 U.S. foreign trade agencies of foreign banks, March 31, 1983 A55 U.S. reserve assets Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)' IItteemm 1982 1983 1983 Q3 Q4 Ql Q2 Feb. Mar. Apr. May June Reserves of depository institutions 1 Total 5.1 11.0 1.1 9.2 6.6 19.7 8.8 -1.9 14.0 2 Required 4.9 10.1 .8 9.4 10.2 20.0 7.6 -1.1 13.2 3 Nonborrowed 11.5 12.7 .6 3.7 5.1 13.6 2.5 -.2 -6.0 4 Monetary base2 6.8 8.0 8.6 10.4 11.4 15.0 7.3' 10.C 9.9 Concepts of money and liquid assets3 5 Ml 6.1 13.1 14.1 12.2 22.4 15.9 -2.7 26.3 10.2 6 M2 10.9 9.3 20.3 10.1 24.4 11.2 2.8' 12.3 10.6 7 M3 12.5 9.5 10.2 8.1 13.6 8.1' 3.4' 10.9' 10.9 8 L 12.1 8.6' n.a. n.a. 12.2' n.a. n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 18.2 3.2 12.4 4.5 8.8 2.9 6.8 -2.9' 11.1 10 Savings4 -1.8 13.4 -43.4 -14.8 -55.4 -19.9 -12.6 0 0.0 11 Small-denomination time5 18.7 -.5 -48.5 -24.0 -63.9 -38.7 -19.5 -10.1' 3.0 12 Large-denomination time6 26.8 -6.8 -58.5 -20.8 -60.9 -27.7 .8 -37.3' 2.1 13 Thrift institutions7 6.5 6.2 12.1 16.0 21.1' 17.(K 16.6' 12.W 13.4 14 Total loans and securities at commercial banks8 6.0 5.5 9.8 9.9 7.6 11.2 8.7 10.7 10.0 Interest rates (levels, percent per annum) 1982 1983 1983 Q3 Q4 Ql Q2 Mar. Apr. May June July Short-term rates 15 Federal funds9 11.01 9.28 8.65 8.80 8.77 8.80 8.63 8.98 9.37 16 Discount window borrowing10 10.83 9.25 8.50 8.50 8.50 8.50 8.50 8.50 8.50 17 Treasury bills (3-month, secondary market)11. 9.32 7.90 8.11 8.40 8.35 8.21 8.19 8.79 9.08 18 Commercial paper (3-month)11-12 11.15 8.80 8.34 8.62 8.52 8.53 8.33 9.00 9.25 Long-term rates Bonds 19 U.S. government 12.94 10.72 10.87 10.81 10.80 10.63 10.67 11.12 11.59 20 State and local government 11.39 9.90 9.43 9.23 9.20 9.05 9.11 9.52 9.53 21 Aaa utility (new issue)' ... 14.25 12.10 11.89 11.46 11.70 11.41 11.32 11.87 12.32 22 Conventional mortgages 15.65 13.79 13.26 13.16 13.17 13.02 13.09 13.37 n.a. 1. Unless otherwise noted, rates of change are calculated from average 5. Small-denomination time deposits—including retail RPs—are those issued amounts outstanding in preceding month or quarter. in amounts of less than $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week 6. Large-denomination time deposits are those issued in amounts of $100,000 plus vault cash held two weeks earlier used to satisfy reserve requirements at all or more. depository institutions plus currency outside the U.S. Treasury, Federal Reserve 7. Savings and loan associations, mutual savings banks, and credit unions. Banks, the vaults of depository institutions, and surplus vault cash at depository 8. Changes calculated from figures shown in table 1.23. Beginning December institutions. 198], growth rates reflect shifts of foreign loans and securities from U.S. banking 3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal offices to international banking facilities. Reserve Banks, and the vaults of commercial banks; (2) travelers checks of 9. Averages of daily effective rates (average of the rates on a given date nonbank issuers; (3) demand deposits at all commercial banks other than those weighted by the volume of transactions at those rates). due to domestic banks, the U.S. government, and foreign banks and official 10. Rate for the Federal Reserve Bank of New York. institutions less cash items in the process of collection and Federal Reserve float; 11. Quoted on a bank-discount basis. and (4) negotiable order of withdrawal (NOW) and automatic transfer service 12. Unweighted average of offering rates quoted by at least five dealers. (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts, and demand deposits at mutual savings banks. 14. Bond Buyer series for 20 issues of mixed quality. M2: Ml plus money market deposit accounts (MMDAs), savings and small- 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by denomination time deposits at all depository institutions, overnight repurchase Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve agreements at commercial banks, overnight Eurodollars held by U.S. residents compilations. other than banks at Caribbean branches of member banks, and balances of money 16. Average rates on new commitments for conventional first mortgages on market mutual funds (general purpose and broker/dealer). new homes in primary markets, unweighted and rounded to nearest 5 basis points, M3: M2 plus large-denomination time deposits at all depository institutions from Department of Housing and Urban Development. and term RPs at commercial banks and savings and loan associations and balances of institution-only money market mutual funds. NOTE. Revisions in reserves of depository institutions reflect the transitional L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents phase-in of reserve requirements as specified in the Monetary Control Act of other than banks, bankers acceptances, commercial paper, Treasury bills and 1980. other liquid Treasury securities, and U.S. savings bonds. 4. Savings deposits exclude NOW and ATS accounts at commercial banks and thrifts and CUSD accounts at credit unions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • August 1983 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 1983 1983 May June July June 15 June 22 June 29 July 6 July 13 July 20p July 27? SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 160,130 162,133 164,916 161,349 163,213 162,708 165,099 164,505 166,207 164,440 2 U.S. government securities' 139,481 141,484 143,971 140,921 142,427 141,615 143,095 143,163 145,461 143,896 3 Bought outright 139,362 141,177 143,122 140,921 141,953 141,615 141,789 143,163 142,841 143,896 4 Held under repurchase agreements 119 307 849 0 474 0 1,306 0 2,620 0 5 Federal agency securities 8,916 8,922 8,950 8,893 8,937 8,890 9,060 8,886 9,036 8,880 6 Bought outright 8,908 8,895 8,883 8,893 8,890 8,890 8,890 8,886 8,880 8,880 7 Held under repurchase agreements 8 27 67 0 47 0 170 0 156 0 8 Acceptances 22 38 55 0 83 0 144 0 129 0 9 Loans 907 1,716 1,382 1,811 1,712 2,102 2,234 1,147 1,233 1,389 10 Float 2,096 1,670 1,929 1,486 1,566 1,593 2,102 2,673 1,584 1,583 11 Other Federal Reserve assets 8,708 8,303 8,629 8,238 8,488 8,509 8,464 8,637 8,764 8,691 12 Gold stock 11,133 11,131 11,131 11,131 11,131 11,131 11,131 11,131 11,131 11,131 13 Special drawing rights certificate account . 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 14 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 ABSORBING RESERVE FUNDS - 15 Currency in circulation .. 157,143 159,177 160,679 159,391 159,068 158,833 160,785 161,665 160,709 159,903 16 Treasury cash holdings 532 536 525 540 535 533 533 528 524 525 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,521 3,525 4,017 3,131 3,838 3,858 4,454 4,498 3,309 4,517 18 Foreign 244 219 252 221 213 221 267 209 262 231 19 Other 565 541 623 543 516 575 546 645 690 620 20 Required clearing balances 693 754 902 750 763 772 792 821 888 986 21 Other Federal Reserve liabilities and capital 4,959 5,107 5,197 5,046 5,206 5,197 5,133 5,088 5,313 5,260 22 Reserve accounts2 22,010 21,808 22,256 21,261 22,607 22,254 22,124 20,586 24,046 21,933 End-of-month figures Wednesday figures 1983 1983 May June July June 15 June 22 June 29 July 6 July 13 July 2(V July Hp SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 160,828 164,037 163,893 163,582 165,347 162,170 165,589 167,590 170,356 163,698 24 U.S. government securities' 141,180 141,673 144,255 139,998 143,456 140,729 143,848 144,276 147,911 143,500 25 Bought outright 141,180 140,511 144,255 139,998 142,137 140,729 141,448 144,276 144,125 143,500 26 Held under repurchase agreements 0 1,162 0 0 1,319 0 2,400 0 3,786 0 27 Federal agency securities 8,908 9,105 8,880 8,890 9,032 8,890 9,055 8,880 9,020 8,880 28 Bought outright — . 8,908 8,890 8,880 8,890 8,890 8,890 8,890 8,880 8,880 8,880 29 Held under repurchase agreements. . 0 215 0 0 142 0 165 0 140 0 30 Acceptances 0 203 0 0 272 0 63 0 74 0 31 Loans 1,260 3,610 1,113 4,412 1,900 2,080 1,626 3,005 2,484 1,349 32 Float 850 1,020 1,066 1,444 2,047 1,638 2,165 2,622 1,825 1,497 33 Other Federal Reserve assets 8,630 8,426 8,579 8,838 8,640 8,833 8,832 8,807 9,042 8,472 34 Gold stock 11,132 11,131 11,131 11,131 11,131 11,131 11,131 11,131 11,131 11,131 35 Special drawing rights certificate account . 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 36 Treasury currency outstanding 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13,786 ABSORBING RESERVE FUNDS 37 Currency in circulation 158,634 160,419 159,953 159,600 159,086 159,945 161,682 161,660 160,383 159,982 38 Treasury cash holdings 532 533 515 538 533 531 533 527 520 525 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 4,372 8,764 3,815 3,170 3,379 4,026 3,621 3,526 3,998 3,315 40 Foreign 445 279 369 271 180 241 279 196 268 242 41 Other 679 470 566 620 453 443 492 656 672 589 42 Required clearing balances 711 775 830 748 760 772 778 813 823 827 43 Other Federal Reserve liabilities and capital 5,144 5,111 5,178 4,900 5,053 5,038 5,017 4,984 5,179 5,022 44 Reserve accounts2 19,847 17,220 22,201 23,269 25,438 20,708 22,721 24,762 28,047 22,730 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 1981 1982 1983 Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June July 1 Reserve balances with Reserve Banks' 26,163 24,604 24,804 24,431 23,530 22,168 22,565 22,010 21,808 22,256 2 Total vault cash (estimated) 19,538 19,807 20,392 21,454 20,035 19,484 19,569 19,710 20,098 20,402 3 Vault cash at institutions with required reserve balances2 13,577 13,836 14,292 14,602 13,705 13,027 13,246 13,339 13,593 13,742 4 Vault cash equal to required reserves at other institutions 2,178 2,759 2,757 2,829 2,562 2,844 2,839 2,933 3,014 3,048 5 Surplus vault cash at other institutions3 3,783 3,212 3,343 4,023 3,768 3,613 3,484 3,438 3,491 3,612 6 Reserve balances + total vault cash4 45,701 44,411 45,196 45,885 43,565 41,652 42,134 41,720 41,906 42,658 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 41,199 41,853 41,862 39,797 38,039 38,650 38,282 38,415 39,046 8 Required reserves (estimated) 41,606 40,797 41,353 41,316 39,362 37,602 38,174 37,833 37,935 38,444 9 Excess reserve balances at Reserve Banks4-6 312 402 500 546 435 437 476 449 480 602 10 Total borrowings at Reserve Banks 642 579 697 500 557 852 993 902 1,714 1,382 11 Seasonal borrowings at Reserve Banks 53 47 33 33 39 53 82 98 121 172 12 Extended credit at Reserve Banks 149 188 187 156 277 318 407 514 964 572 Weekly averages of daily figures for week ending 1983 May 25 June 1 June 8 June 15 June 22 June 29 July 6 July 13 July 20p July IIP 13 Reserve balances with Reserve Banks1 22,312 21,764 21,069 21,261 22,607 22,254 22,124 20,586 24,046 21,933 14 Total vault cash (estimated) 18,877 19,856 20,136 20,477 19,636 20,150 20,284 21,027 19,147 21,037 15 Vault cash at institutions with required reserve balances2 13,123 13,445 13,427 13,324 13,751 13,869 13,749 13,625 13,008 1144,,225599 16 Vault cash equal to required reserves at other institutions 2,635 3,010 3,148 3,343 2,642 2,919 3,050 3,531 2,765 3,082 17 Surplus vault cash at other institutions3 3,119 3,401 3,561 3,810 3,243 3,362 3,485 3,871 3,374 3,696 18 Reserve balances + total vault cash4 41,189 41,620 41,205 41,738 42,243 42,404 42,408 41,613 43,193 42,970 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 38,070 38,219 37,644 37,928 39,000 39,042 38,923 37,742 39,819 39,274 20 Required reserves (estimated) 37,620 37,743 37,020 37,578 38,591 38,557 38,069 37,246 39,514 38,891 21 Excess reserve balances at Reserve Banks4-6 450 476 624 350 409 485 854 496 305 383 22 Total borrowings at Reserve Banks 951 1,118 907 1,811 1,712 2,102 2,234 1,147 1,233 1,389 23 Seasonal borrowings at Reserve Banks 104 108 107 110 125 143 143 144 179 203 24 Extended credit at Reserve Banks 511 530 453 1,096 1,061 1,262 1,103 434 460 464 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 3. Total vault cash at institutions without required reserve balances less vault clearing balances plus vault cash at institutions with required reserve balances cash equal to their required reserves. plus vault cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accord- 6. Reserve balances with Federal Reserve Banks, which exclude required ance with Board policy, effective Nov. 19, 1975, of permitting transitional relief on clearing balances plus vault cash used to satisfy reserve requirements less a graduated basis over a 24-month period when a nonmember bank merged into an required reserves. (This measure of excess reserves is comparable to the old excess reserve concept published hitforically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • August 1983 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1983, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee June 1 June 8 June 15 June 22 June 29' July 6 July 13 July 20 July 27 One day and continuing contract 1 Commercial banks in United States 59,750 64,366 62,554 59,083 55,811 6677,,441100 6666,,553322 6600,,002288 5577,,009955 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 28,042 26,878 26,422 25,715 24,115 22,378 23,152 23,976 24,052 3 Nonbank securities dealers 7,282 5,958 5,925 6,110 5,614 5,307 4,716 4,929 4,764 4 Mother 25,604 25,710 26,898 26,961' 27,406 26,833 25,419 25,594 25,470 All other maturities 5 Commercial banks in United States 5,214 5,228 5,558 5,729 5,630 5,273 5,016 5,322 55,,446644 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 9,909 10,404r 10,316' 10,104 10,479 10,416 10,368 10,833 9,668 7 Nonbank securities dealers 6,301 5,402 5,891 6,456 6,072 5,075 5,039 5,938 5,876 8 All other 9,175' 8,711' 8,734' 8,708 9,548 8,630 7,851 8,043 8,471 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 25,364 22,770 22,766' 24,731' 23,726 30,794 29,534 27,362 26,298 10 Nonbank securities dealers 4,395 4,560 4,097 4,231 4,186 4,623 4,439 4,828 4,062 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 All 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended crediti SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 7/31/83 date rate 7/31/83 rate 7/31/83 rate 7/31/83 rate Boston 8'/2 12/14/82 9 m 9 9V2 10 I0'/2 11 12/14/82 New York 12/15/82 12/15/82 Philadelphia 12/17/82 12/17/82 Cleveland 12/15/82 12/15/82 Richmond 12/15/82 12/15/82 Atlanta 12/14/82 12/14/82 Chicago 12/14/82 12/14/82 St. Louis 12/14/82 12/14/82 Minneapolis 12/14/82 12/14/82 Kansas City 12/15/82 12/15/82 Dallas 12/14/82 12/14/82 San Francisco... 8V4 12/14/82 9 8V4 9 9'/4 10 10'/2 11 12/14/82 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le B l v l a e n F l) k . — R s . B N o a .Y f n k . Effective A l B e ll v a n e F k l . s R s - . B No a .Y n f k . Effective date A le B l v l a e n F l) k . — R s . B N o a .Y n f k . I 11 n 99 77 e 44 f —— fec t AA D pprr e .. c . 2 3 3 5 0 1 , 1973 71 l 8 l / / 2 2 - 8 7 8 8 1 /2 1978— A Ju u l g y . 2 1 1 3 0 7-7 7 71V % /44 7 7 73 1 ^ / / 4 4 4 1981— N M o a v y . 2 5 8 1 1 3 3 1 - - 4 1 1 4 4 1 1 1 4 4 3 Dec. 1 9 6 7V 73 4 /4 -8 7 7 3 3 / / 4 4 S O e c p t. t . 2 2 1 2 0 6 8m 8 -8 V 2 8m S > /2 Dec. 4 6 1 12 3 1 12 3 1975— Jan. 1 6 0 7 71 ^ / 4 4 - - 7 7 3 3 / / 4 4 7 7 3 1 / / 4 4 Nov. 3 1 8'/ 9 4 - V 9 4 '/4 9 9 V 1/4 4 1982—July 2 2 0 3 11 1 V 1V 4- 4 1 2 1 ll 1 i/ 'A z M Fe a b r . . 2 1 5 7 4 0 6 61 3 / / 4 7 6 4 — 1 3 - / / 7 4 4 6 ! 3 / / 4 4 6 7 6 6 1 1 3 3 / / / / 4 4 4 4 1979— AA Ju uu ly gg .. 2 2 1 0 0 7 101 lo -01 0 w 1/ 2 1l 1 O0 0 V '/4 i Aug. 2 1 2 3 7 6 l 1 O 1 1 - - 10 1 l 11 1 O / V ' 2 / 4 i 1 1 W 1 1 0 1 /2 14 6V4 61/4 Sept. 19 10V4-11 11 30 10 10 MMaayy 2 1 3 6 6- 6 6 1/4 6 6 Oct. 2 8 1 1 1 1 1 - 12 1 1 1 2 Oct. 1 1 2 3 91 9 /2 V -1 i 0 99V14 /2 10 12 12 Nov. 22 9-9'/J 9 1976— Jan. 19 51/2-6 5V4 26 9 9 Nov. 2 2 2 3 51/ 5 4 V -5 4 1 /2 5 5 1 1/ / 4 2 1980— Feb. 1 1 5 9 12 1 - 3 1 3 1 1 3 3 Dec. 1 1 4 5 8 8 1 8 V / V 2 2 - - 9 9 i 98> /> 26 51/4 51/4 MMaayy 29 12-13 13 17 8!/4 30 12 12 1977— Aug. 30 5!/4-53/4 51/4 June 13 11-12 11 31 5'/4-53/4 53/4 16 11 11 Sept. 2 53/4 53/4 July 28 10-11 10 Oct. 26 6 6 29 10 10 Sept. 26 11 11 1978— Jan. 9 6-6 Vi 6'/2 Nov. 17 12 12 20 6'/2 61/2 Dec. 5 12-13 13 MMaayy 1 1 2 1 6 7 ^ -7 7 7 8 13 13 In effect July 31, 1983 S</2 m 1. Applicable to advances when exceptional circumstances or practices involve In 1980 and 1981, the Federal Reserve applied a surcharge to short-term only a particular depository institution and to advances when an institution is adjustment credit borrowings by institutions with deposits of $500 million or more under 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, 1980, adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and and 1981. 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 Domestic Nonfinancial Statistics • August 1983 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyypp dd ee ee pp oo oo ff ss ii dd tt ee ii pp nn oo tt ss ee ii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo ooff ss ii dd tt ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts1-* 7 12/30/76 $0-$26.3 million 3 12/30/82 91/2 12/30/76 1122 1122//3300//8822 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 161/4 12/30/76 By original maturity Less than 2'/2 years 3 3/31/83 Time and savings2^ 21/2 years or more 0 3/31/83 Savings 3 3/16/67 Eurocurrency liabilities TTiimmee44 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 21/2 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 21/2 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual percent above the base used to calculate the marginal reserve in the statement Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was for 1976, table 13. Under provisions of the Monetary Control Act, depository reduced to the extent that foreign loans and balances declined. institutions include commercial banks, mutual savings banks, savings and loan 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97associations, credit unions, agencies and branches offoreign banks, and Edge Act 320) provides that $2 million of reservable liabilities (transaction accounts, corporations. nonpersonal time deposits, and Eurocurrency liabilities) of each depository 2. Requirement schedules are graduated, and each deposit interval applies to institution be subject to a zero percent reserve requirement. The Board is to adjust that part of the deposits of each bank. Demand deposits subject to reserve the amount of reservable liabilities subject to this zero percent reserve requirerequirements were gross demand deposits minus cash items in process of ment each year for the next succeeding calendar year by 80 percent of the collection and demand balances due from domestic banks. percentage increase in the total reservable liabilities of all depository institutions, The Federal Reserve Act as amended through 1978 specified different ranges of measured on an annual basis as of June 30. No corresponding adjustment is to be requirements for reserve city banks and for other banks. Reserve cities were made in the event of a decrease. Effective Dec. 9, 1982, the amount of the designated under a criterion adopted effective Nov. 9, 1972, by which a bank exemption was established at $2.1 million. In determining the reserve requirehaving net demand deposits of more than $400 million was considered to have the ments of a depository institution, the exemption shall apply in the following order: character of business of a reserve city bank. The presence of the head office of (1) nonpersonal money market deposit accounts (MMDAs) authorized under 12 such a bank constituted designation of that place as a reserve city. Cities in which CFR section 1204.122; (2) net NOW accounts (NOW accounts less allowable there were Federal Reserve Banks or branches were also reserve cities. Any deductions); (3) net other transaction accounts; and (4) nonpersonal time deposits banks having net demand deposits of $400 million or less were considered to have or Eurocurrency liabilities starting with those with the highest reserve ratio. With the character of business of banks outside of reserve cities and were permitted to respect to NOW accounts and other transaction accounts, the exemption applies maintain reserves at ratios set for banks not in reserve cities. only to such accounts that would be subject to a 3 percent reserve requirement. Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances 6. For nonmember banks and thrift institutions that were not members of the due from domestic banks to their foreign branches and on deposits that foreign Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent 1987. For banks that were members on or after July 1, 1979, but withdrew on or respectively. The Regulation D reserve requirement of borrowings from unrelated before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends banks abroad was also reduced to zero from 4 percent. on Oct. 24, 1985. For existing member banks the phase-in period is about three Effective with the reserve computation period beginning Nov. 16, 1978, years, depending on whether their new reserve requirements are greater or less domestic deposits of Edge corporations were subject to the same reserve than the old requirements. All new institutions will have a two-year phase-in requirements as deposits of member banks. beginning with the date that they open for business, except for those institutions 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as that have total reservable liabilities of $50 million or more. Christmas and vacation club accounts were subject to the same requirements as 7. Transaction accounts include all deposits on which the account holder is savings deposits. permitted to make withdrawals by negotiable or transferable instruments, pay- The average reserve requirement on savings and other time deposits before ment orders of withdrawal, and telephone and preauthorized transfers (in excess implementation of the Monetary Control Act had to be at least 3 percent, the of three per month) for the purpose of making payments to third persons or others. minimum specified by law. However, MMDAs and similar accounts offered by institutions not subject to the 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent rules of the Depository Institutions Deregulation Committee (DIDC) that permit was imposed on large time deposits of $100,000 or more, obligations of affiliates, no more than six preauthorized, automatic, or other transfers per month of which and ineligible acceptances. This supplementary requirement was eliminated with no more than three can be checks—are not transaction accounts (such accounts the maintenance period beginning July 24, 1980. are savings deposits subject to time deposit reserve requirements.) Effective with the reserve maintenance period beginning Oct. 25, 1979, a 8. The Monetary Control Act of 1980 requires that the amount of transaction marginal reserve requirement of 8 percent was added to managed liabilities in accounts against which the 3 percent reserve requirement applies be modified excess of a base amount. This marginal requirement was increased to 10 percent annually by 80 percent of the percentage increase in transaction accounts held by beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and all depository institutions determined as of June 30 each year. Effective Dec. 31, was eliminated beginning July 24, 1980. Managed liabilities are defined as large 1981, the amount was increased accordingly from $25 million to $26 million; and time deposits, Eurodollar borrowings, repurchase agreements against U.S. effective Dec. 30, 1982, to $26.3 million. government and federal agency securities, federal funds borrowings from non- 9. In general, nonpersonal time deposits are time deposits, including savings member institutions, and certain other obligations. In general, the base for the deposits, that are not transaction accounts and in which the beneficial interest is marginal reserve requirement was originally the greater of (a) $100 million or (b) held by a depositor that is not a natural person. Also included are certain the average amount of the managed liabilities held by a member bank, Edge transferable time deposits held by rtatural persons', and certain obligations issued corporation, or family of U.S. branches and agencies of a foreign bank for the two to depository institution offices located outside the United States. For details, see reserve computation periods ending Sept. 26, 1979. For the computation period section 204.2 of Regulation D. beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's U.S. office gross loans to foreigners and gross balances due NOTE. Required reserves must be held in the form of deposits with Federal from foreign offices of other institutions between the base period (Sept. 13-26, Reserve Banks or vault cash. After implementation of the Monetary Control Act, 1979) and the week ending Mar. 12, 1980, whichever was greater. For the nonmembers may maintain reserves on a pass-through basis with certain apcomputation period beginning May 29, 1980, the base was increased by iVi proved institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Savings and loan associations and Commercial banks mutual savings banks (thrift institutions) Type and maturity of deposit In effect July 31, 1983 Previous maximum In effect July 31, 1983 Previous maximum Effective Percent Effective Effective date date date 2 1 N Sa e v g i o n t g ia s b le order of withdrawal accounts2 .. 5 5V V 4 A 12 7 /3 /1 1/ / 8 7 0 9 7 1 / / 1 1 / /7 7 4 3 S5VVi4 12 7 /3 /1 1 / / 7 8 9 0 5 5l /4 Time accounts3 Fixed ceiling rates by maturity4 1 4 6 7 8 9 5 3 0 9 4 2 6 2 8 1 1 0 l 4 h t t y t t o o o - o d e 8 t a a 6 9 8 o 2 2 y r V s y y s y d 4 e e e i a o t y a a a o y y r e r r r e s s s s m a ' 1 a 8 7 8 r r o y s s 7 r e 7 e a 8 r 5 6 5 7W 7 V 3 3 '/ / / V 4 4 4 4 l i 12 1 8 7 6 7 / 1 1 2 / / / / / / 1 1 1 1 3 1 1 / / / / / / / 7 7 7 7 7 7 80 9 3 4 8 3 3 5 5 7 5 S 5 ( ( 9 3 V 6 3 / ) ) / V V 4 4 4 i 2 1 1 1 1 7 7 / 1 / / 2 2 2 / / / 1 1 1 1 1 1 / / / / / / 7 7 7 7 7 7 3 3 0 3 0 0 6 m 7 6 6 ( 3 6 3 V / / ) 4 4 2 12 1 6 / 1 1 2 / / ( ( / • 1 3 1 » 1 / ) / / / ) 7 7 7 8 8 4 3 0 5 5 6 6 I ( ( C 9 6 3 3 V ) / / ) 4 4 ) j 11 Issue m d a t t o u r g it o ie v s e ) r 1 n 0 mental units (all 6/1/78 7V4 12/23/74 6/1/78 73/4 12 IRAs o r a n m d o r K e e )1 o 0 g '1 h 1 (H.R. 10) plans (3 years 6/1/78 73/4 7/6/77 6/1/78 73/4 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans. 9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or 2. Federally insured commercial banks, savings and loan associations, cooper- more with minimum denominations of $1,000 had no ceiling, however, the amount ative banks, and mutual savings banks in Massachusetts and New Hampshire of such certificates that an institution could issue was limited to 5 percent of its were first permitted to offer negotiable order of withdrawal (NOW) accounts on total time and savings deposits. Sales in excess of that amount, as well as Jan. 1, 1974. Authorization to issue NOW accounts was extended to similar certificates of less than $1,000, were limited to the 6'/2 percent ceiling on time institutions throughout New England on Feb. 27, 1976, New York State on Nov. deposits maturing in 2'/2 years or more. Effective Nov. 1, 1973, ceilings were 10, 1978, New Jersey on Dec. 28, 1979, and to similar institutions nationwide reimposed on certificates maturing in 4 years or more with minimum denominaeffective Dec. 31, 1980. Effective January 5, 1983, the interest rate ceiling is tion of $1,000. There is no limitation on the amount of these certificates that banks removed for NOW accounts with an initial balance and average maintenance can issue. balance of $2,500. 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum 3. For exceptions with respect to certain foreign time deposits, see the denomination requirements. BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate (p. 167). as thrifts on IRA and Keogh accounts and accounts of governmental units when 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts such deposits are placed in 21/2-year-or-more variable-ceiling certificates or in 26at savings and loan associations was decreased to 14 days and the minimum week money market certificates regardless of the level of the Treasury bill rate. maturity period for time deposits at savings and loan associations in excess of $100,000 was decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally or notice period for time deposits was decreased from 30 to 14 days at mutual insured commercial banks, mutual savings banks, and savings and loan associasavings banks. tions were established by the Board of Governors of the Federal Reserve System, 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time the Board of Directors of the Federal Deposit Insurance Corporation, and the deposits was decreased from 30 to 14 days at commercial banks. Federal Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 6. No separate account category. respectively. Title II of the Depository Institutions Deregulation and Monetary 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to required for savings and loan associations, except in areas where mutual savings establish maximum rates of interest payable on deposits to the Depository banks permitted lower minimum denominations. This restriction was removed for Institutions Deregulation Committee. The maximum rates on time deposits in deposits maturing in less than 1 year, effective Nov. 1, 1973. denominations of $100,000 or more with maturities of 30-89 days were suspended 8. No minimum denomination. Until July 1, 1979, the minimum denomination in June 1970; the maximum rates for such deposits maturing in 90 days or more was $1,000 except for deposits representing funds contributed to an individual were suspended in May 1973. For information regarding previous interest rate retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the ceilings on all types of accounts, see earlier issues of the FEDERAL RESERVE Internal Revenue Code. The $1,000 minimum requirement was removed for such BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report accounts in December 1975 and November 1976 respectively. of the Federal Deposit Insurance Corporation. For deposits subject to variable ceiling rates and deposits not subject to interest rate ceilings see page A10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • August 1983 1.16 Continued TIME DEPOSITS SUBJECT TO VARIABLE CEILING RATES 91-day time deposits. Effective May 1, 1982, depository institutions were 12-month all savers certificates. Effective Oct. 1, 1981, depository institutions authorized to offer time deposits that have a minimum denomination of $7,500 and are authorized to issue all savers certificates (ASCs) with a 1-year maturity and an a maturity of 91 days. Effective Jan. 5, 1983, the minimum denomination required annual investment yield equal to 70 percent of the average investment yield for 52for this deposit is reduced to $2,500. The ceiling rate of interest on these deposits week U.S. Treasury bills as determined by the auction of 52-week Treasury bills is indexed to the discount rate (auction average) on most recently issued 91-day held immediately before the calendar week in which the certificate is issued. A Treasury bills for thrift institutions and the discount rate minimum 25 basis points maximum lifetime exclusion of $1,000 ($2,000 on a joint return) from gross income for commercial banks. The rate differential ends 1 year from the effective date of is generally authorized for interest income from ASCs. The annual investment these instruments and is suspended at any time the Treasury bill discount rate is 9 yield for ASCs issued in December 1982 (in percent) was as follows: Dec. 26,6.26. percent or below for four consecutive auctions. The maximum allowable rates in July 1983 (in percent) for commercial banks and thrifts were as follows: July 7, l'/2-year to less than 2>/2-year time deposits. Effective Aug. 1, 1981, commercial 9.10; July 12, 9.07; July 19, 9.19; and July 26, 9.13. banks are authorized to pay interest on any variable ceiling nonnegotiable time deposit with an original maturity of 2V2 years to less than 4 years at a rate not to Six-month money market time deposits. Effective June 1, 1978, commercial exceed 'A of 1 percent below the average 2'/2-year yield for U.S. Treasury banks and thrift institutions were authorized to offer time deposits with a maturity securities as determined and announced by the Treasury Department immediately of exactly 26 weeks and a minimum denomination requirement of $10,000. before the date of deposit. Effective May 1, 1982, the maximum maturity for this Effective Jan. 5, 1983, the minimum denomination required for this deposit is category of deposits was reduced to less than 3'/4 years. Effective Apr. 1, 1983, the reduced to $2,500. The ceiling rate of interest on these deposits is indexed to the maximum maturity for this category of deposits was reduced to less than 2Vi years discount rate (auction average) on most recently issued 26-week U.S. Treasury and the minimum maturity was reduced to 1V2 years. Thrift institutions may pay bills. Interest on these certificates may not be compounded. Effective for all 6- interest on these certificates at a rate not to exceed the average 1 '/4-year yield for month money market certificates issued beginning Nov. 1, 1981, depository Treasury securities as determined and announced by the Treasury Department institutions may pay rates of interest on these deposits indexed to the higher of (1) immediately before the date of deposit. If the announced average 1 '/4-year yield the rate for 26-week Treasury bills established immediately before the date of for Treasury securities is less than 9.50 percent, commercial banks may pay 9.25 deposit (bill rate) or (2) the average of the four rates for 26-week Treasury bills percent and thrift institutions 9.50 percent for these deposits. These deposits have established for the 4 weeks immediately before the date of deposit (4-week no required minimum denomination, and interest may be compounded on them. average bill rate). Ceilings are determined as follows: The ceiling rates of interest at which they may be offered vary biweekly. The maximum allowable rates in July 1983 (in percent) for commercial banks were as Bill rate or 4-week Commercial bank ceiling follows: July 7, 9.80 and July 19, 10.3; and for thrift institutions: July 7, 10.05 and average bill rate July 19, 10.55. 7.50 percent or below 7.75 percent Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks and thrift institu- Above 7.50 percent lA of 1 percentage point plus the higher of tions were authorized to offer variable ceiling nonnegotiable time deposits with no the bill rate or 4-week average bill rate required minimum denomination and with maturities of 2'/4 years or more. Effective Jan. 1, 1980, the maximum rate for commercial banks was }A percentage Thrift ceiling point below the average yield on 2'/4-year U.S. Treasury securities; the ceiling rate 7.25 percent or below 7.75 percent for thrift institutions was '/4 percentage point higher than that for commercial Above 7.25 percent, but below V4 of 1 percentage point plus the higher of banks. Effective Mar. 1, 1980, a temporary ceiling of IIV4 percent was placed on 8.50 percent the bill rate or 4-week average bill rate these accounts at commercial banks and 12 percent on these accounts at savings 8.50 percent or above, but below 9 percent and loans. Effective June 2, 1980, the ceiling rates for these deposits at 8.75 percent commercial banks and savings and loans were increased V4 percentage point. The 8.75 percent or above '/4 of 1 percentage point plus the higher of temporary ceiling was retained, and a minimum ceiling of 9.25 percent for the bill rate or 4-week average bill rate commercial banks and 9.50 percent for thrift institutions was established. The maximum rates in July 1983 for commercial banks based on the bill rate were as follows: July 7, 9.45; July 12,9.51; July 19, 9.62; and July 26,9.56, and based on the 4-week average bill rate were as follows: July 7, 9.30; July 12, 9.40; July 19, 9.49; and July 26,9.53. The maximum allowable rates in July 1983 for thrifts based on the bill rate were as follows: July 7, 9.45; July 12, 9.51; July 19, 9.62; and July 26, 9.56; and June 28, 9.39; and based on the 4-week average bill rate were as follows: July 7, 9.30; July 12, 9.40; July 19, 9.49; and July 26, 9.53. TIME DEPOSITS NOT SUBJECT TO INTEREST RATE CEILINGS Money market deposit account. Effective Dec. 14,1982, depository institutions Time deposits of 7 to 31 days. Effective Sept. 1, 1982, depository institutions are authorized to offer a new account with a required initial balance of $2,500 and were authorized to issue nonnegotiable time deposits of $20,000 or more with a an average maintenance balance of $2,500 not subject to interest rate restrictions. maturity or required notice period of 7 to 31 days. The maximum rate of interest No minimum maturity period is required for this account, but depository payable by thrift institutions was the rate established and announced (auction institutions must reserve the right to require seven days' notice before withdraw- average on a discount basis) for U.S. Treasury bills with maturities of 91 days at als. When the average balance is less than $2,500, the account is subject to the the auction held immediately before the date of deposit or renewal ("bill rate"). maximum ceiling rate of interest for NOW accounts; compliance with the average Commercial banks could pay the bill rate minus 25 basis points. The interest rate balance requirement may be determined over a period of one month. Depository ceiling was suspended when the bill rate is 9 percent or below for the four most institutions may not guarantee a rate of interest for this account for a period longer recent auctions held before the date of deposit or renewal. Effective January 5, than one month or condition the payment of a rate on a requirement that the funds 1983, the minimum denomination required for this deposit was reduced to $2,500 remain on deposit for longer than one month. No more than six preauthorized, and the interest rate ceiling was removed. automatic, or other third-party transfers are permitted per month, of which no more than three can be checks. Telephone transfers to third parties or to another Time deposits of 2'/2 years or more. Effective May 1, 1982, depository account of the same depositor are regarded as preauthorized transfers. institutions were authorized to offer negotiable or nonnegotiable time deposits with a minimum original maturity of 3'/4 years or more that are not subject to IRAs and Keogh (H.R. 10) plans (18 months or more). Effective Dec. 1, 1981, interest rate ceilings. Such time deposits have no minimum denomination, but depository institutions are authorized to offer time deposits not subject to interest must be made available in a $500 denomination. Additional deposits may be made rate ceilings when the funds are deposited to the credit of, or in which the entire to the account during the first year without extending its maturity. Effective beneficial interest is held by, an individual pursuant to an IRA agreement or Apr. 1, 1983, the minimum maturity period for this category of deposits was Keogh (H.R. 10) plan. Such time deposits must have a minimum maturity of 18 reduced to 2'/4 years. months, and additions may be made to the time deposit at any time before its maturity without extending the maturity of all or a portion of the balance of the account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1982 1983 TTyyppee ooff ttrraannssaaccttiioonn 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 1,897 0 1,456 1,259 22,,888800 551166 11,,772211 2 Gross sales 7,331 6,746 8,369 731 1,983 934 0 0 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 200 900 300 0 0 0 0 Others within 1 year 5 Gross purchases 912 317 312 0 0 0 0 0 173 00 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 906 558 4,564 1,198 826 1,795 1,398 8 Exchange -18,251 -12,869 -14,164 -943 -544 -2,688 -900 0 -1,842 -916 9 Redemptions 0 0 0 0 0 0 0 0 0 87 1 to 5 years 10 Gross purchases 2,138 1,702 1,797 0 0 0 0 00 559955 00 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -8,909 -10,299 -14,524 -906 -553 -4,564 -1,198 -684 -41 -1,398 13 Exchange 13,412 10,117 11,804 943 544 1,599 900 0 1,367 916 5 to 10 years 14 Gross purchases 703 393 388 0 0 0 0 0 326 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -3,092 -3,495 -2,172 0 -5 229 0 -142 -1,754 0 17 Exchange 2,970 1,500 2,128 0 0 650 0 0 300 0 Over 10 years 18 Gross purchases 811 379 307 0 0 0 0 0 108 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -426 0 -601 0 0 -229 0 0 0 0 21 Exchange 1,869 1,253 234 0 0 439 0 0 175 0 All maturities 22 Gross purchases 12,232 16,690 19,870 1,897 0 1,456 1,259 2,880 1,719 1,721 23 Gross sales 7,331 6,769 8,369 731 1,983 934 0 0 0 0 24 Redemptions 3,389 1,816 3,000 200 900 300 0 0 0 87 Matched transactions 25 Gross sales 674,000 589,312 543,804 72,123 59,398 35,234 47,892 37,873 43,404 50,086 26 Gross purchases 675,496 589,647 543,173 69,088 59,043 38,204 47,724 36,205 45,001 47,783 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 15,229 6,747 6,697 3,526 7,671 0 7,891 28 Gross sales 113,040 78,733 130,286 11,525 10,451 6,697 3,526 3,984 3,687 6,730 29 Net change in U.S. government securities 3,869 9,626 8,358 1,636 -6,943 3,192 1,090 4,899 -371 493 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 668 494 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 145 108 189 6 9 5 8 7 * -17 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 2,566 452 276 379 340 0 678 34 Gross sales 28,863 13,576 18,638 1,978 1,040 276 379 92 248 463 35 Net change in federal agency obligations 555 130 130 582 -596 -5 -8 241 -248 198 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 1,480 -1,480 0 0 704 -704 203 37 Total net change in System Open Market Account 4,497 9,175 9,773 3,697 -9,019 3,187 1,082 5,844 -1,322 893 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • August 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1983 1983 June 29 July 6 July 13 July 20 July 27 May June July Consolidated condition statement ASSETS 1 Gold certificate account 11,131 11,131 11,131 11,131 11,131 11,132 11,131 11,131 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 387 375 379 391 403 403 382 411 Loans 4 To depository institutions 2,080 1,626 3,005 2,484 1,349 1,260 3,610 1,113 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 0 63 0 74 0 0 203 0 Federal agency obligations 7 Bought outright 8,890 8,890 8,880 8,880 8,880 88,,990088 8,890 8,880 8 Held under repurchase agreements 0 165 0 140 0 0 215 0 U.S. government securities Bought outright 9 Bills 58,431 59,150 61,003 60,852 60,227 58,795 58,213 60,982 10 Notes 63,107 63,107 63,958 63,958 63,958 63,107 63,107 63,958 11 Bonds 19,191 19,191 19,315 19,315 19,315 19,278 19,191 19,315 12 Total1 140,729 141,448 144,276 144,125 143,500 141,180 140,511 144,255 13 Held under repurchase agreements 0 2,400 0 3,786 0 0 1,162 0 14 Total U.S. government securities 140,729 143,848 144,276 147,911 143,500 141,180 141,673 144,255 15 Total loans and securities 151,699 154,592 156,161 159,489 153,729 151,348 154,591 154,248 16 Cash items in process of collection 8,475 11,435 9,496 8,734 7,807 6,607 8,173 8,635 17 Bank premises 553 555 553 553 555 553 553 552 Other assets 18 Denominated in foreign currencies2 4,400 4,329 4,330 4,333 3,829 4,376 4,322 3,839 19 All other3 3,880 3,948 3,924 4,156 4,088 3,701 3,551 4,188 20 Total assets 185,143 190,983 190,592 193,405 186,160 182,738 187,321 187,622 LIABILITIES 21 Federal Reserve notes 147,078 148,805 148,781 147,509 147,125 145,783 147,549 147,094 Deposits ?? Depository institutions 21,487 23,507 25,583 28,939 23,562 20,567 18,004 23,046 23 U.S. Treasury—General account 4,026 3,621 3,526 3,998 3,315 4,372 8,764 3,815 74 Foreign—Official accounts 241 279 196 268 242 445 279 369 25 Other 436 484 648 603 584 670 461 551 26 Total deposits 26,190 27,891 29,953 33,808 27,703 26,054 27,508 27,781 77 Deferred availability cash items 6,837 9,270 6,874 6,909 6,310 5,757 7,153 7,569 28 Other liabilities and accrued dividends4 1,927 1,967 1,862 2,048 1,890 1,849 2,021 1,989 29 Total liabilities 182,032 187,933 187,470 190,274 183,028 179,443 184,231 184,433 CAPITAL ACCOUNTS 30 Capital paid in 1,421 1,426 1,426 1,427 1,427 1,413 1,421 1,427 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,359 32 Other capital accounts 331 265 337 345 346 523 310 403 33 Total liabilities and capital accounts 185,143 190,983 190,592 193,405 186,160 182,738 187,321 187,622 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 110,758 111,473 110,711 111,662 111,874 110,198 110,889 94,203 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) 166,482 166,546 167,722 168,472 169,114 163,394 166,397 169,213 36 LESS: Held by bank5 19,404 17,741 18,941 20,963 21,989 17,611 18,848 22,119 37 Federal Reserve notes, net 147,078 148,805 148,781 147,509 147,125 145,783 147,549 147,094 Collateral for Federal Reserve notes 38 Gold certificate account 11,131 11,131 11,131 11,131 11,131 11,132 11,131 11,131 39 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 131,329 133,056 133,032 131,760 131,376 130,033 131,800 131,345 42 Total collateral 147,078 148,805 148,781 147,509 147,125 145,783 147,549 147,094 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 market exchange rates of foreign-exchange commitments. against receipt of foreign currencies and foreign currencies warehoused for the 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank U.S. Treasury. Assets shown in this line are revalued monthly at market exchange are exempt from the collateral requirement. rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks; Banking Aggregates A13 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1983 1983 June 29 July 6 July 13 July 20 July 27 May 31 June 30 July 29 1 Loans—Total 2,080 1,634 3,005 2,484 1,349 1,260 3,610 1,113 2 Within 15 days 2,039 1,545 2,912 2,449 1,306 1,220 3,561 1,045 3 16 days to 90 days 41 89 93 35 43 40 49 68 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 63 0 74 0 0 203 0 6 Within 15 days 0 63 0 74 0 0 203 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 140,729 143,848 144,276 147,911 143,500 141,180 141,673 144,255 10 Within 15 days1 5,960 7,500 6,067 7,625 4,955 4,011 3,767 4,116 11 16 days to 90 days 30,096 31,581 33,877 34,679 33,038 32,654 30,111 34,748 12 91 days to 1 year 42,839 43,415 42,160 43,434 43,334 42,680 46,442 43,218 13 Over 1 year to 5 years 33,067 32,585 33,066 33,108 33,108 33,067 32,586 33,108 14 Over 5 years to 10 years 11,700 11,700 11,915 11,874 11,874 11,700 11,700 11,874 15 Over 10 years 17,067 17,067 17,191 17,191 17,191 17,068 17,067 17,191 16 Federal agency obligations—Total 8,890 9,055 8,880 9,020 8,880 8,908 9,105 8,880 17 Within 15 days1 192 276 61 232 81 188 406 82 18 16 days to 90 days 582 667 697 615 815 585 583 814 19 91 days to 1 year 2,012 2,007 2,009 2,009 1,914 1,977 2,012 1,914 20 Over 1 year to 5 years 4,421 4,421 4,430 4,518 4,418 4,450 4,421 4,418 21 Over 5 years to 10 years 1,165 1,166 1,165 1,128 1,134 1,190 1,165 1,134 22 Over 10 years 518 518 518 518 518 518 518 518 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • August 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1982 1983 1979 1980 1981 IItteemm Dec. Dec. Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 1 Total reserves2 34.23 36.23 37.93 40.41 40.78 40.12 40.34 41.00 41.30 41.24 41.72 41.93 2 Nonborrowed reserves 32.76 34.54 39.45 39.79 40.15 39.59 39.76 40.21 40.29 40.29 40.08 40.48 3 Required reserves 33.91 35.71 39.53 40.01 40.28 39.57 39.91 40.57 40.83 40.79 41.24 41.43 4 Monetary base3 142.8 154.9 173.2 174.3 175.6 176.3 178.0 180.2 181.3 182.8 184.3 185.0 Not seasonally adjusted 5 Total reserves2 34.83 37.24 38.85 40.68 41.56 42.23 40.23 40.23 41.05 40.71 40.84 41.42 6 Nonborrowed reserves 33.35 35.55 38.21 40.06 40.93 41.69 39.64 39.44 40.04 39.75 39.20 39.97 7 Required reserves 34.50 36.72 38.59 40.28 41.06 41.67 39.79 39.80 40.57 40.26 40.36 40.92 8 Monetary base3 145.3 158.2 166.1 175.4 178.9 177.7 175.9 177.7 180.3 181.J 183.5 185.6 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 43.91 40.66 41.92 41.20 41.85 41.86 39.80 38.04 38.65 38.28 34.42 38.95 10 Nonborrowed reserves 42.43 38.97 41.29 40.58 41.22 41.33 39.22 37.24 37.64 37.33 36.78 37.50 11 Required reserves 43.58 40.15 40.60 40.80 41.35 41.32 39.36 37.60 38.17 37.83 37.93 38.44 12 Monetary base3 156.1 162.5 169.7 176.0 179.3 177.7 175.9 175.7 178.4 179.8 181.6 183.7 1. Reserve aggregates include required reserves of member banks and Edge 1981, an increase of $210 million; January 14, 1982, a reduction of $60 million; Act corporations and other depository institutions. Discontinuities associated February 11, 1982 an increase of $170 million; March 4, 1982, an estimated with the implementation of the Monetary Control Act, the inclusion of Edge Act reduction of $2.0 billion; May 13, 1982, an estimated increase of $150 million; corporation reserves, and other changes in Regulation D have been removed. August 12, 1982 an estimated increase of $140 million; and September 2, 1982, an 2. Reserve balances with Federal Reserve Banks plus vault cash at institutions estimated reduction of $1.2 billion; October 28, 1982 an estimated reduction of with required reserve balances plus vault cash equal to required reserves at other $100 million; December 23, 1982 an estimated reduction of $800 million; and institutions. March 3, 1983 an estimated reduction of $1.9 billion. Beginning with the week 3. Consists of reserve balances and service-related balances and adjustments at ended December 23, 1981, reserve aggregates have been reduced by shifts of Federal Reserve Banks in the current week plus vault cash held two weeks earlier reservable liabilities to IBFs. On the basis of reports of liabilities transferred to used to satisfy reserve requirements at all depository institutions plus currency IBFs by U.S. commercial banks and U.S. agencies and branches offoreign banks, outside the U.S. Treasury, Federal Reserve Banks, the vaults of depository it is estimated that required reserves were lowered on average by $60 million to institutions, and surplus vault cash at depository institutions. $90 million in December 1981 and $180 million to $230 million in January 1982, 4. Reserves of depository institutions series reflect actual reserve requirement mostly reflecting a reduction in reservable Eurocurrency transactions. Also, percentages with no adjustments to eliminate the effect of changes in Regulation D beginning with the week ending April 20, 1983, required reserves were reduced an including changes associated with the implementation of the Monetary Control estimated $80 million as a result of the elimination of reserve requirements on Act. Includes required reserves of member banks and Edge Act corporations and nonpersonal time deposits with maturities of 2'/2 years or more to less than 3Vi beginning November 13, 1980, other depository institutions. Under the transition- years. al phase-in program of the Monetary Control Act of 1980, the net changes in required reserves of depository institutions have been as follows: Effective NOTE. Latest monthly and weekly figures are available from the Board's November 13, 1980, a reduction of $2.9 billion; February 12, 1981, an increase of H.3(502) statistical release. Back data and estimates of the impact on required $245 million; March 12, 1981, an increase of $75 million; May 14, 1981, an increase reserves and changes in reserve requirements are available from the Banking of $245 million; September 3, 1981, a reduction of $1.1 billion; November 12, 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 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1983 IItteemm DD 19 ee 7 cc 9 .. DD 19 ee 8 cc 0 .. DD 19 ee 8 cc 1 .. DD 19 ee 8 cc 2 .. MMaarr.. AApprr.. MMaayy JJuunnee Seasonally adjusted MEASURES1 1 Ml 389.0 414.1 440.6 478.2 497.6 496.5 507.4 511.7 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 2,069.9' 2,074.7R 2,096.0' 2,114.6 3 M3 1,758.4 1,936.7 2,167.9 2,377.6 2,447.1' 2,454.0' 2,476.3' 2,498.8 4 L2 2,131.8 2,343.6 2,622.0 2,896.8 n.a. n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 137.0 138.0 139.3 140.3 6 Travelers checks3 3.7 4.1 4.5 4.2 4.5 4.6 4.7 4.7 7 Demand deposits 262.0 266.8 236.4 239.8 240.1 238.9 242.5 244.0 9 8 S O a t v h i e n r g c s h d e e c p k o a s b i l t e s 5 d eposits4 42 1 3 7 . . 1 0 40 2 0 6 . . 7 9 3 7 44 6 . . 4 6 3 1 5 0 9 1 . . 3 3 11126.20 .1' 3 1 2 1 1 5 . .0 5 ' 3 1 2 2 3 0. . 9 0 ' 3 1 2 2 4 2 . . 9 7 10 Small-denomination time deposits6 635.9 731.7 828.6 859.1 733.8 725.7 720.1 722.2 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 296.2' 300.4 299.5' 304.0 Not seasonally adjusted MEASURES1 12 Ml 398.8 424.7 452.1 491.0 489.2 504.5' 499.8 508.3 13 M2 1,502.1 1,635.0 1,799.6 1,964.5 2,065.9' 2,088.4' 2,092.5' 2,114.4 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,445.9' 2,465.5' 2,471.5' 2,495.4 15 L2 2,138.9 2,350.8 2,629.7 2,904.7 n.a. n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 135.4 137.4 138.9 140.3 17 Travelers checks3 3.5 3.9 4.3 4.0 4.3 4.4 4.5 4.9 18 Demand deposits 270.1 275.2 244.0 247.7 235.2 242.4 238.2' 242.1 19 Other checkable deposits4 17.0 27.2 78.4 104.0 114.3 120.2' 118.2 121.0 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 48.7 50.6 55.2' 56.5 21 Savings deposits5 420.7 398.3 342.1 356.7 323.2' 324.3' 324.6' 326.3 22 Money market deposit accounts n.a. n.a. n.a. 43.2 320.5 341.2 356.8 367.3 23 Small-denomination time deposits6 633.1 728.3 824.1 853.9 737.7 728.6 722.7 724.0 Money market mutual funds 24 General purpose and broker/dealer 33.4 61.4 150.9 182.2 154.0 146.7 140.9 139.3 25 Institution only 9.5 14.9 36.0 47.6 43.5 41.0 40.4 39.2 26 Large-denomination time deposits7 226.0 262.4 305.9 336.5 298.9' 298.1' 298.2' 300.9 1. Composition of the money stock measures is as follows: 3. Outstanding amount of U.S. dollar-denominated travelers checks of non- Ml: Averages of daily figures for (1) currency outside the Treasury, Federal bank issuers. Reserve Banks, and the vaults of commercial banks; (2) travelers checks of 4. Includes ATS and NOW balances at all institutions, credit union share draft nonbank issuers; (3) demand deposits at all commercial banks other than those balances, and demand deposits at mutual savings banks. due to domestic banks, the U.S. government, and foreign banks and official 5. Excludes NOW and ATS accounts at commercial banks and thrift instituinstitutions less cash items in the process of collection and Federal Reserve float; tions and CUSDs at credit unions and all money market deposit accounts and (4) negotiable order of withdrawal (NOW) and automatic transfer service (MMDAs). (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 6. Issued in amounts of less than $100,000 and includes retail RPs. accounts, and demand deposits at mutual savings banks. 7. Issued in amounts of $100,000 or more and are net of the holdings of M2: Ml plus money market deposit accounts, savings and small-denomination domestic banks, thrift institutions, the U.S. government, money market mutual time deposits at all depository institutions, overnight repurchase agreements at funds, and foreign banks and official institutions. commercial banks, overnight Eurodollars held by U.S. residents other than banks 8. Overnight (and continuing contract) RPs are those issued by commercial at Caribbean branches of member banks and balances of money market mutual banks to other than depository institutions and money market mutual funds funds (general purpose and broker/dealer). (general purpose and broker/dealer), and overnight Eurodollars are those issued M3: M2 plus large-denomination time deposits at all depository institutions, by Caribbean branches of member banks to U.S. residents other than depository term RPs at commercial banks and savings and loan associations, and balances of institutions and money market mutual funds (general purpose and broker/dealer). institution-only money market mutual funds. 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. NOTE: Latest monthly and weekly figures are available from the Board's H.6 residents other than banks, bankers acceptances, commercial paper, Treasury (508) release. Back data are available from the Banking Section, Division of bills and other liquid Treasury securities, and U.S. savings bonds. Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • August 1983 1.22 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1983 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 1199880011 1199881111 1199882211 Jan. Feb. Mar. Apr. May June Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 103,333.1 102,743.5 102,206.1 103,022.3 107,273.3 106,858.3 2 Major New York City banks 25,156.1 33,891.9 37,932.9 46,353.0 45,133.2 44,327.4 46,025.6 46,891.2 46,444.3 3 Other banks 37,601.7 46,966.9 52,981.6 56,980.1 57,610.3 57,878.7 56,996.7 60,382.1 60,414.1 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,262.3 1,286.4 1,369.4 1,202.2 1,371.5 1,375.4 5 Savings deposits4 670.0 672.7 721.4 904.3 827.9 803.2 714.9 743.1 784.5 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 361.1 361.3 356.1 359.7 370.4 368.6 7 Major New York City banks 803.7 1,105.1 1,287.6 1,462.3 1,462.5 1,437.4 1,502.8 1,471.5 1,449.0 8 Other banks 132.2 186.2 211.1 223.9 227.2 225.9 222.9 234.3 234.3 9 ATS-NOW accounts3 9.7 14.0 14.5 15.8 15.1 15.6 13.9 15.2 15.0 10 Savings deposits4 3.6 4.1 4.5 6.0 5.8 5.7 5.1 5.4 5.7 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 101,566.1 92,654.1 109,166.3 100,117.1 103,947.8 113,836.2 12 Major New York City banks 25,243.1 34,032.0 38,001.0 45,657.2 40,937.3 47,496.6 43,678.9 44,942.5 50,643.1 13 Other banks 37,881.3 47,165.9 53,030.9 55,908.8 51,716.8 61,669.7 56,438.1 59,005.4 63,193.1 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,525.5 1,198.7 1,398.4 1,405.3 1,353.1 1,455.9 15 MMDA5 0 0 0 278.4 324.7 454.9 545.8 505.6 630.7 16 Savings deposits4 669.8 672.9 720.0 980.4 754.3 820.4 779.9 722.2 787.5 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 346.1 334.8 391.8 347.9 368.1 394.3 18 Major New York City banks 814.8 1,114.2 1,295.7 1,368.1 1,366.7 1,561.1 1,446.9 1,471.0 1,563.6 19 Other banks 134.8 186.2 211.5 215.0 209.5 248.5 219.1 234.3 246.5 20 ATS-NOW accounts3 9.7 14.0 14.3 18.6 14.4 16.2 15.6 15.3 16.1 21 MMDA5 0 0 0 2.4 2.0 2.4 2.8 2.4 2.9 22 Savings deposits4 3.6 4.1 4.5 6.6 5.3 5.8 5.6 5.2 5.7 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSA's that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data of Research and Statistics, Board of Governors of the Federal Reserve System, availability starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts, MMDA and special club accounts, such as Christmas and vacation clubs. 5. Money Market Deposit Accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1981 1982 1983 1981 1982 1983 CCaatteeggoorryy Dec.2 Dec. Mar.3 Apr. May June Dec.2 Dec. Mar.3 Apr. May June Seasonally adjusted Not seasonally adjusted 1 Total loans and securities4 1,316.3 1,412.1 1,450.2 1,460.6 1,474.4 1,487.9 1,326.1 1,422.5 1,445.0 1,460.0 1,468.1 1,485.6 2 U.S. Treasury securities 111.0 130.9 151.0 157.8 166.1 171.1 111.4 131.5 153.2 160.6 165.3 171.6 3 Other securities 231.4 239.1 242.8 243.4 245.0 246.2 232.8 240.6 242.3 243.3 245.2 245.9 4 Total loans and leases4 973.9 1,042.0 1,056.3 1,059.5 1,063.3 1,070.6 981.8 11,,005500..44 11,,004499..55 11,,005566..00 11,,005577..66 11,,006688..00 5 Commercial and industrial loans 358.0 392.4 396.2 392.8 393.0 395.0 360.1 394.7 395.1 395.2 393.1 394.4 6 Real estate loans 285.7 303.2 309.5 311.4 313.6 316.9 286.8 304.1 308.6 310.4 312.4 315.4 7 Loans to individuals 185.1 191.8 194.8 196.0 197.9 199.8 186.4 193.1 193.0 194.7 196.7 199.0 8 Security loans 21.9 24.7 22.6 22.9 23.4 22.3 22.7 25.5 22.0 22.9 22.5 23.5 9 Loans to nonbank financial institutions 30.2 31.1 32.0 31.6 31.1 31.1 31.2 32.1 31.6 31.3 30.7 30.7 10 Agricultural loans 33.0 36.1 37.1 37.2 36.9 36.7 33.0 36.1 36.3 36.6 36.7 36.9 11 Lease financing receivables.... 12.7 13.1 13.1 13.1 13.1 13.0 12.7 13.1 13.1 13.1 13.1 13.0 12 All other loans 47.2 49.7 51.0 54.3 54.4 55.7 49.2 51.7 49.8 51.9 52.5 55.2 MEMO: 13 Total loans and securities plus loans sold4-5 1,319.1 1,415.0 1,453.1 1,463.6 1,477.2 1,490.7 1,328.9 1,425.4 1,448.0 1,462.9 1,470.9 1,488.3 14 Total loans plus loans sold4-5 .... 976.7 1,045.0 1,059.3 1,062.4 1,066.1 1,073.3 984.7 1,053.3 1,052.5 1,059.0 1,060.4 1,070.8 15 Total loans sold to affiliates4-5.... 2.8 2.9 3.0 3.0 2.8 2.7 2.8 2.9 3.0 3.0 2.8 2.7 16 Commercial and industrial loans plus loans sold5 360.2 394.6 398.6 395.3 395.1 397.2 362.3 396.9 397.4 397.5 395.3 396.5 17 Commercial and industrial loans sold5 2.2 2.3 2.4 2.4 2.2 2.1 2.2 2.3 2.4 2.4 2.2 2.1 18 Acceptances held 8.9 8.5 8.9 8.9 8.2 8.0 9.8 9.5 8.5 8.2 7.7 8.1 19 Other commercial and industrial loans 349.1 383.8 387.3 384.0 384.8 387.0 350.3 385.2 386.6 386.9 385.4 386.3 20 To U.S. addressees6 334.9 373.5 375.0 372.1 371.8 373.7 334.3 372.7 374.4 375.1 373.4 374.2 21 To non-U.S. addressees 14.2 10.3 12.3 11.9 13.0 13.3 16.1 12.4 12.2 11.8 12.0 12.1 22 Loans to foreign banks 19.0 13.5 14.9 15.2 15.1 15.0 20.0 14.5 14.6 14.6 14.5 14.5 1. Includes domestically chartered banks; U.S. branches and agencies of 4. Excludes loans to commercial banks in the United States. foreign banks, New York investment companies majority owned by foreign 5. Loans sold are those sold outright to a bank's own foreign branches, banks, and Edge Act corporations owned by domestically chartered and foreign nonconsolidated nonbank affiliates of the bank, the bank's holding company (if banks. not a bank), and nonconsolidated nonbank subsidiaries of the holding company. 2. Beginning December 1981, shifts of foreign loans and securities from U.S. 6. United States includes the 50 states and the District of Columbia. banking offices to international banking facilities (IBFs) reduced the levels of several items. Seasonally adjusted data that include adjustments for the amounts NOTE. Data are prorated averages of Wednesday estimates for domestically shifted from domestic offices to IBFs are available in the Board's G.7 (407) chartered banks, based on weekly reports of a sample of domestically chartered statistical release (available from Publications Services, Board of Governors of banks and quarterly reports of all domestically chartered banks. For foreignthe Federal Reserve System, Washington, D.C. 20551). related institutions, data are averages of month-end estimates based on weekly 3. Due to loan reclassifications, several categories have breaks in series: reports from large agencies and branches and quarterly reports from all agencies, beginning Jan. 12, 1983, real estate loans increased $0.4 billion and loans to branches, investment companies, and Edge Act corporations engaged in banking. individuals decreased $0.2 billion. As of Jan. 26, 1983, other securities increased $0.2 billion and total loans and commercial and industrial loans decreased $0.2 billion. As of Feb. 2, 1983, real estate loans increased $0.5 billion and commercial and industrial loans decreased $0.5 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • August 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1981 1982 1983 SSoouurrccee Dec. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total nondeposit funds 1 Seasonally adjusted2 96.0 81.7 78.4 81.1 87.2 82.7 72.8 75.9 75.8 80.0 90.6 88.0 2 Not seasonally adjusted 97.5 85.4 80.8 83.3 89.2 84.2 74.3 76.9 76.5 78.6 90.1 89.7 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.5 120.2 121.6 126.1 129.1 127.4 131.6 134.6 134.7 139.1 145.2 140.0 4 Not seasonally adjusted 113.0 123.9 124.0 128.4 131.1 128.8 133.1 135.5 135.4 137.7 144.7 141.6 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.2 -41.3 -46.3 -47.9 -44.9 -48.5 -62.1 -61.7 -62.0 -62.0 -57.1 -54.9 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.8 2.8 2.8 2.9 2.9 3.0 3.0 3.0 3.0 2.8 2.7 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.5 -34.5 -39.0 -40.4 -38.4 -39.8 -50.2 -50.6 -52.9 -52.6 -48.6 -49.5 8 Gross due from balances 54.9 65.2 68.8 69.8 69.9 72.4 79.4 78.9 79.8 80.1 76.2 76.1 9 Gross due to balances 32.4 30.8 29.7 29.4 31.5 32.6 29.2 28.3 26.9 27.5 27.6 26.6 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -6.9 -7.3 -7.5 -6.5 -8.7 -11.9 -11.1 -9.1 -9.4 -8.5 -5.4 11 Gross due from balances 48.1 53.8 54.6 53.9 53.5 55.3 57.1 55.7 56.1 55.9 55.7 54.0 12 Gross due to balances 52.4 46.9 47.3 46.4 47.0 46.6 45.3 44.6 47.1 46.6 47.2 48.6 Security RP borrowings 13 Seasonally adjusted' 59.0 65.2 65.0 69.0 71.5 71.0 72.2 74.3 74.7 79.3 84.6 81.4 14 Not seasonally adjusted 59.2 67.5 66.0 69.8 72.1 71.1 72.2 73.7 73.9 76.3 82.6 81.5 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 10.1 11.1 14.4 10.6 11.9 15.7 8.8 12.5 13.5 11.3 13.0 16 Not seasonally adjusted 11.1 8.1 12.3 16.4 7.8 10.8 16.3 10.2 13.2 14.2 12.5 13.2 Time deposits, $100,000 or more9 17 Seasonally adjusted 324.1 367.1 366.7 376.6 360.6 347.3 319.2 303.0 296.0 296.2 287.0 287.6 18 Not seasonally adjusted 330.4 359.3 361.8 364.9 361.7 353.9 325.4 310.5 300.7 293.0 285.0 283.5 IBF ADJUSTMENTS FOR SELECTED ITEMS10 19 22.4 32.5 32.8 33.1 33.3 33.9 34.2 2222200000 11111.....77777 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 22222.....44444 2222211111 Item 5 2222200000.....77777 3333300000.....11111 3333300000.....44444 3333300000.....77777 3333300000.....99999 3333311111.....55555 3333311111.....88888 2222222222 Item 7 33333.....11111 55555.....33333 55555.....44444 55555.....44444 55555.....55555 55555.....88888 55555.....88888 2222233333 Item 10 1111177777.....66666 2222244444.....99999 2222255555.....00000 2222255555.....33333 2222255555.....44444 2222255555.....77777 2222266666.....00000 1. Commercial banks are those in the 50 states and the District of Columbia participations in pooled loans. Includes averages of daily figures for member with national or state charters plus agencies and branches of foreign banks, New banks and averages of current and previous month-end data for foreign-related York' investment companies majority owned by foreign banks, and Edge Act institutions. corporations owned by domestically chartered and foreign banks. 4. Loans initially booked by the bank and later sold to affiliates that are still 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from held by affiliates. Averages of Wednesday data. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 5. Averages of daily figures for member and nonmember banks. Includes averages of Wednesday data for domestically chartered banks and 6. Averages of daily data. averages of current and previous month-end data for foreign-related institutions. 7. Based on daily average data reported by 122 large banks. 3. Other borrowings are borrowings on any instrument, such as a promissory 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at note or due bill, given for the purpose of borrowing money for the banking commercial banks. Averages of daily data. business. This includes borrowings from Federal Reserve Banks and from foreign 9. Averages of Wednesday figures. banks, term federal funds, overdrawn due from bank balances, loan RPs, and 10. Estimated effects of shifts of foreign assets from U.S. banking offices to international banking facilities (IBFs). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking Institutions A19 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1982 1983 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July DOMESTICALLY CHARTERED COMMERCIAL BANKS' 1 Loans and securities, excluding interbank 1,337.1 1,343.0 1,347.0 1,370.4 1,370.8 1,373.7 1,392.2 1,404.0 11,,441111..99 11,,443355..22 11,,443377..77 2 Loans, excluding interbank 985.9 988.5 990.4 1,000.8 993.3 991.4 1,001.7 1,004.6 1,006.9 1,025.1 1,028.7 3 Commercial and industrial 354.4 355.8 355.4 357.9 355.6 356.3 358.6 358.5 357.3 360.6 361.7 4 Other 631.5 632.7 635.0 642.9 638.2 635.8 643.7 646.8 650.8 664.5 667.0 5 U.S. Treasury securities 115.0 119.4 122.2 129.0 136.0 141.4 150.6 155.5 160.9 166.0 165.1 6 Other securities 236.2 235.1 234.4 240.5 241.6 240.8 239.9 243.9 244.1 244.1 243.9 7 Cash assets, total 157.4 162.1 169.7 184.4 167.8 184.7 168.9 170.1 164.5 176.9 168.7 8 Currency and coin 20.4 20.5 19.0 23.0 20.4 20.3 19.9 20.4 20.3 21.3 20.7 9 Reserves with Federal Reserve Banks 17.0 23.5 22.0 25.4 23.9 25.3 20.5 23.9 22.4 18.8 20.6 10 Balances with depository institutions . 60.4 61.3 64.6 67.6 67.7 71.6 67.1 66.1 65.6 69.7 67.2 11 Cash items in process of collection ... 59.6 56.8 64.1 68.4 55.9 67.5 61.5 59.6 56.3 67.1 60.3 12 Other assets2 234.9 237.0 241.8 265.3 260.1 263.6 257.9 252.4 248.3 253.2 254.5 13 Total assets/total liabilities and capital ... 1,729.3 1,742.1 1,758.6 1,820.1 1,798.7 1,822.0 1,818.9 1,826.3 1,824.9 1,865.2 1,860.9 14 Deposits 1,290.7 1,300.2 1,316.9 1,361.8 1,340.6 1,368.3 1,374.2 1,368.0 1,370.8 1,402.7 1,396.7 15 Demand 323.0 326.5 338.1 363.9 324.0 337.9 333.4 329.2 324.5 344.4 334.3 16 Savings 230.9 238.2 244.9 296.4 361.5 395.2 419.2 426.9 440.2 445.3 447.6 17 Time 736.8 735.4 733.9 701.5 655.1 635.2 621.6 611.9 606.1 613.1 614.9 18 Borrowings 202.8 203.7 198.1 215.1 221.6 218.0 211.3 224.0 214.1 221.2 217.5 19 Other liabilities 103.4 106.2 109.3 109.2 106.4 106.0 103.5 102.3 104.7 104.3 105.5 20 Residual (assets less liabilities) 132.5 132.0 134.3 133.9 130.1 129.6 130.0 132.0 135.1 137.0 141.1 MEMO: 21 U.S. Treasury note balances included in borrowing 17.0 11.7 2.4 10.7 17.1 7.0 9.6 17.8 2.7 19.3 1199..33 22 Number of banks 14,785 14,797 14,782 14,787 14,780 14,812 14,819 14,823 14,817 14,826 14,785 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,397.3 1,401.7 1,413.7 1,429.8 1,427.5 1,429.8 1,451.3 1,461.0 11,,446677..66 11,,449911..66 11,,449944..44 24 Loans, excluding interbank 1,042.4 1,042.3 1,052.1 1,054.9 1,044.8 1,042.3 1,054.5 1,055.2 1,055.9 1,074.6 1,078.4 25 Commercial and industrial 395.0 393.7 398.9 396.5 393.0 392.9 396.5 394.1 392.3 395.9 398.3 26 Other 647.4 648.6 653.2 658.4 652.4 650.0 658.6 661.8 664.7 678.7 680.2 27 U.S. Treasury securities 117.2 122.7 125.7 132.8 139.5 145.1 155.3 160.3 166.1 171.3 170.3 28 Other securities 237.7 236.7 235.9 242.1 243.2 242.4 241.5 245.5 245.8 245.7 245.6 29 Cash assets, total 173.7 178.7 181.2 200.7 183.7 200.5 185.5 186.3 180.3 193.5 185.2 30 Currency and coin 20.4 20.5 19.0 23.0 20.4 20.3 19.9 20.4 20.3 21.3 20.7 31 Reserves with Federal Reserve Banks 18.4 25.0 23.4 26.8 25.3 26.7 22.0 25.4 23.8 20.0 21.9 32 Balances with depository institutions 74.2 75.3 74.4 81.4 81.1 84.9 81.0 79.8 78.9 84.0 81.2 33 Cash items in process of collection ... 60.6 57.8 64.3 69.4 56.9 68.6 62.6 60.7 57.3 68.2 61.4 34 Other assets2 310.3 313.9 323.3 341.7 333.2 330.2 325.4 317.7 309.5 318.1 318.7 35 Total assets/total liabilities and capital ... 1,881.3 1,894.2 1,918.2 1,972.2 1,944.4 1,960.4 1,962.2 1,964.9 1,957.5 2,003.2 1,998.4 36 Deposits 1,335.5 1,345.2 1,358.1 1,409.7 1,385.4 1,412.6 1,419.5 1,411.0 1,413.1 1,443.8 1,438.3 37 Demand 335.1 338.9 344.9 376.2 335.9 350.2 345.7 341.1 336.4 356.4 346.5 38 Savings 231.1 238.5 245.1 296.7 361.9 395.6 419.7 427.3 440.7 445.7 448.0 39 Time 769.2 767.8 768.0 736.7 687.7 666.8 654.1 642.6 636.0 641.6 643.8 40 Borrowings 267.6 268.3 267.0 278.3 283.5 276.0 269.9 281.3 269.5 278.2 277.9 41 Other liabilities 143.8 146.9 156.6 148.4 143.5 140.4 141.1 138.7 137.9 142.3 139.1 42 Residual (assets less liabilities) 134.4 133.9 136.6 135.8 132.0 131.5 131.9 133.9 137.0 138.9 143.0 MEMO: 43 U.S. Treasury note balances included in borrowing 17.0 11.7 2.4 10.7 17.1 7.0 9.6 17.8 2.7 19.3 19.3 44 Number of banks 15,311 15,330 15,318 15,329 15,332 15,366 15,376 15,390 15,385 15,396 15,359 1. Domestically chartered commercial banks include all commercial banks in NOTE. Figures are partly estimated. They include all bank-premises subsidiarthe United States except branches of foreign banks; included are member and ies and other significant majority-owned domestic subsidiaries. Data for domestinonmember banks, stock savings banks, and nondeposit trust companies. cally chartered commercial banks are for the last Wednesday of the month. Data 2. Other assets include loans to U.S. commercial banks. for other banking institutions are estimates made on the last Wednesday of the 3. Commercial banking institutions include domestically chartered commercial month based on a weekly reporting sample of foreign-related institutions and banks, branches and agencies of foreign banks, Edge Act and Agreement quarter-end condition report data. corporations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • August 1983 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 1983 AAccccoouunntt June 1 June 8 June 15 June 22 June 29? July 6p July Hp July 20p July 21P 1 Cash items in process of collection 69,150 44,415 58,469 47,554 54,018 60,182 49,529 47,368 48,066 2 Demand deposits due from banks in the United States.. 8,938 6,618 7,547 7,081 7,845 9,555 6,913 7,377 6,733 3 All other cash and due from depository institutions .... 37,721 33,363 34,312 37,044 32,838 33,325 36,621 37,477 33,806 4 Total loans and securities 670,550 665,318 668,602 662,861 665,484 681,634 667,247 667,229 664,422 Securities 5 U.S. Treasury securities 54,352 55,367 55,197 54,477 53,741 55,742 51,489 52,005 50,117 6 Trading account 10,467 11,093 10,974 10,958 10,318 11,831 9,243 10,202 9,091 / Investment account, by maturity 43,885 44,274 44,224 43,519 43,423 43,911 42,246 41,804 41,026 8 One year or less 14,960 15,231 15,068 15,091 15,224 14,514 13,961 13,552 13,654 9 Over one through five years 26,608 26,694 26,801 26,058 25,842 26,648 25,677 25,765 24,848 10 Over five years 2,317 2,350 2,355 2,370 2,357 2,750 2,608 2,486 2,524 11 Other securities 83,627 84,544 83,672 83,206 83,216 83,172 81,997 82,748 83,387 12 Trading account 6,063 6,921 6,218 5,881 5,834 6,224 4,922 5,490 5,450 13 Investment account 77,563 77,623 77,453 77,325 77,382 76,948 77,075 77,258 77,937 14 U.S. government agencies 16,750 16,724 16,587 16,549 16,487 16,472 16,392 16,335 16,416 15 States and political subdivisions, by maturity 57,372 57,449 57,479 57,367 57,472 57,045 57,206 57,359 58,008 16 One year or less 7,195 7,213 7,182 7,075 7,394 7,314 6,800 7,020 7,701 17 Over one year 50,176 50,236 50,297 50,292 50,078 49,730 50,407 50,339 50,307 18 Other bonds, corporate stocks and securities 3,441 3,450 3,387 3,409 3,423 3,431 3,476 3,564 3,513 Loans 19 Federal funds sold1 43,119 40,290 42,642 39,935 39,857 51,318 45,706 44,498 43,797 20 To commercial banks 32,843 29,590 31,271 30,086 28,676 40,173 35,461 33,875 32,774 21 To nonbank brokers and dealers in securities 7,333 7,637 7,762 6,815 8,106 7,633 7,002 7,201 7,737 22 To others 2,942 3,062 3,609 3,034 3,074 3,512 3,242 3,421 3,286 23 Other loans, gross 502,862 498,652 500,603 498,744 502,135 504,742 501,380 501,319 500,500 24 Commercial and industrial 214,471 212,917 213,565 214,276 213,284 214,968 214,188 214,370 213,242 25 Bankers acceptances and commercial paper 3,956 3,964 4,094 4,508 4,445 4,556 4,488 4,060 3,744 26 All other 210,514 208,953 209,471 209,769 208,839 210,412 209,700 210,310 209,498 27 U.S. addressees 203,655 202,013 202,621 202,895 202,076 203,583 202,731 203,487 202,596 28 Non-U.S. addressees 6,860 6,940 6,850 6,874 6,763 6,830 6,969 6,823 6,902 29 Real estate 134,358 134,272 134,614 134,605 134,858 134,752 135,027 135,290 135,402 30 To individuals for personal expenditures 75,690 75,735 76,064 76,381 76,820 7766,,885588 76,936 7777,,111199 7777,,551111 To financial institutions 31 Commercial banks in the United States 8,079 7,480 7,402 6,956 7,127 7,527 7,328 7,070 6,909 32 Banks in foreign countries 8,440 7,933 7,881 7,884 8,006 8,005 7,686 7,983 7,906 33 Sales finance, personal finance companies, etc 9,722 9,220 9,522 9,068 9,498 9,496 9,530 9,008 9,092 34 Other financial institutions 16,301 16,303 16,045 15,621 15,882 15,997 15,984 15,860 15,718 33 To nonbank brokers and dealers in securities 9,174 9,237 9,199 8,305 9,774 9,450 8,595 8,536 8,652 36 To others for purchasing and carrying securities2 .... 2,846 2,935 2,933 2,932 2,990 3,093 3,095 3,105 3,074 37 To finance agricultural production 6,950 6,972 7,005 7,050 7,051 7,011 7,009 7,059 7,071 38 All other 16,830 15,648 16,371 15,665 16,845 17,585 16,003 15,918 15,924 39 LESS: Unearned income 5,097 5,130 5,134 5,142 5,156 5,081 5,091 5,070 5,064 40 Loan loss reserve 8,313 8,404 8,378 8,359 8,309 8,259 8,235 8,271 8,316 41 Other loans, net 489,451 485,118 487,090 485,243 488,671 491,402 488,054 487,978 487,120 42 Lease financing receivables 11,039 11,029 11,034 10,996 11,052 10,873 10,940 10,873 10,877 43 All other assets 139,334 138,660 140,644 139,664 141,026 148,646 143,731 141,243 139,417 44 Total assets 936,732 899,404 920,608 905,199 912,264 944,215 914,982 911,568 903,320 Deposits 45 Demand deposits 201,731 171,233 192,814 171,933 180,747 195,302 177,072 174,432 173,322 46 Mutual savings banks 832 630 777 624 590 838 643 743 616 47 Individuals, partnerships, and corporations 150,310 132,047 142,778 130,559 134,216 145,468 136,631 132,169 132,720 48 States and political subdivisions 5,482 4,417 5,925 5,166 5,519 5,218 4,654 4,692 4,932 49 U.S. government 1,134 2,214 8,392 2,293 2,031 3,312 987 2,764 2,036 50 Commercial banks in the United States 25,867 18,150 19,542 18,865 20,691 23,977 18,717 19,631 17,999 51 Banks in foreign countries 6,681 5,792 5,761 5,959 6,260 6,568 6,218 5,854 5,811 52 Foreign governments and official institutions 997 855 1,153 1,100 1,190 1,097 1,046 905 873 53 Certified and officers' checks 10,427 7,129 8,485 7,366 10,251 8,823 8,176 7,676 8,335 54 Time and savings deposits 411,391 413,687 412,712 413,033 414,171 415,750 414,642 414,503 413,930 55 Savings 174,821 175,700 175,747 173,747 173,525 176,167 174,859 174,338 173,396 56 Individuals and nonprofit organizations 156,486 157,284 157,222 155,200 154,799 157,921 156,501 156,032 154,990 57 Partnerships and corporations operated for profit .. 17,098 17,264 17,264 17,397 17,473 17,142 17,235 17,246 17,334 58 Domestic governmental units 1,140 1,059 1,177 1,087 1,177 1,057 1,070 1,005 1,002 59 AH other 97 93 84 62 76 47 52 55 70 60 Time 236,570 237,987 236,964 239,286 240,647 239,583 239,782 240,165 240,534 61 Individuals, partnerships, and corporations 207,807 209,035 208,745 210,984 212,492 212,421 212,592 213,238 213,878 62 States and political subdivisions 18,305 18,233 17,599 17,545 17,406 16,766 16,804 16,724 16,612 63 U.S. government 340 332 325 380 401 324 330 328 329 64 Commercial banks in the United States 6,882 7,056 6,954 6,964 66,,998855 6,762 66,,774466 66,,557777 66,,445577 65 Foreign governments, official institutions, and banks 3,235 3,332 3,341 3,413 33,,336611 33,,330099 33,,331100 33,,229988 33,,225588 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,166 18 3,493 728 992 823 2,158 1,532 330 67 Treasury tax-and-loan notes 5,862 698 1,055 14,000 14,286 13,580 14,274 13,202 13,933 68 All other liabilities for borrowed money3 171,602 171,125 168,324 161,993 158,293 173,370 161,942 162,210 155,950 69 Other liabilities and subordinated notes and debentures . 84,382 81,957 81,842 83,134 83,520 84,482 83,861 84,837 85,224 70 Total liabilities 876,135 838,718 860,240 844,822 852,011 883,307 853,948 850,717 842,689 71 Residual (total assets minus total liabilities)4 60,596 60,686 60,367 60,378 60,253 60,908 61,033 60,850 60,631 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. other analytic uses. 3. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 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 1983 AAccccoouunntt June 1 June 8 June 15 June 22 June 29p July 6p July 13? July 20p July Hp 1 Cash items in process of collection 65,267 41,762 54,922 44,622 51,144 56,418 46,668 44,606 45,376 2 Demand deposits due from banks in the United States.. 8,328 6,086 6,900 6,420 7,116 8,796 6,301 6,799 6,192 3 All other cash and due from depository institutions .... 34,776 30,633 31,316 33,943 29,989 30,342 33,671 34,444 30,714 4 Total loans and securities 623,684 618,553 621,881 616,585 618,866 633,721 619,641 619,740 617,280 Securities 5 U.S. Treasury securities 49,837 50.716 50,586 49,768 48,951 51,010 46,802 47,225 45,385 6 Trading account 10,324 10,928 10,818 10,796 10,116 11,655 9,138 9,999 8,960 7 Investment account, by maturity 39,513 39,788 39,768 38,972 38,835 39,355 37,665 37,226 36,426 8 One year or less 13,144 13,353 13,258 13,244 13,424 12,705 12,143 11,745 11,824 9 Over one through five years 24,270 24,314 24,372 23,590 23,304 24,152 23,170 23,251 22,335 10 Over five years 2,098 2,120 2,137 2,138 2,107 2,499 2,351 2,230 2,267 11 Other securities 75,920 76,887 75,962 75,552 75,521 75,500 74,317 74,941 75,629 12 Trading account 5,848 6,754 5,970 5,695 5,667 6,073 4,740 5,219 5,252 13 Investment account 70,072 70,133 69,992 69,856 69,853 69,427 69,576 69,723 70,376 14 U.S. government agencies 15,159 15,128 14,998 14,958 14,867 14,838 14,808 14,719 14,791 15 States and political subdivisions, by maturity 51,842 51,929 51,970 51,849 51,915 51,527 51,676 51,819 52,460 16 One year or less 6,366 6,425 6,412 6,311 6,702 6,658 6,146 6,378 7,060 17 Over one year 45,476 45,504 45,558 45,538 45,213 44,869 45,530 45,442 45,399 18 Other bonds, corporate stocks and securities 3,071 3,075 3,024 3,050 3,071 3,062 3,092 3,184 3,126 Loans 19 Federal funds sold1 38,585 35,852 38,370 36,213 36,024 46,280 40,963 40,260 39,858 20 To commercial banks 28,827 25,683 27,584 26,848 25,388 35,663 31,254 30,240 29,371 21 To nonbank brokers and dealers in securities 6,838 7,142 7,199 6,357 7,587 7,134 6,503 6,631 7,239 22 To others 2,920 3,027 3,587 3,008 3,049 3,482 3,206 3,389 3,249 23 Other loans, gross 471,731 467,608 469,441 467,518 470,810 473,249 469,858 469,620 468,762 24 Commercial and industrial 202,745 201,207 201,854 202,576 201,573 203,162 202,386 202,458 201,369 25 Bankers acceptances and commercial paper 3,527 3,554 3,702 4,132 4,116 4,248 4,184 3,754 3,470 26 All other 199,218 197,652 198,152 198,444 197,457 198,914 198,203 198,705 197,899 27 U.S. addressees 192,477 190,834 191,418 191,688 190,813 192,202 191,352 192,002 191,118 28 Non-U.S. addressees 6,740 6,818 6,733 6,756 6,644 6,712 6,851 6,703 6,781 29 Real estate 126,149 126,035 126,301 126,290 126,515 126,413 126,662 126,911 126,990 30 To individuals for personal expenditures 67,212 67,241 67,517 67,811 68,191 68,219 68,306 68,507 68,816 To financial institutions 31 Commercial banks in the United States 7,603 7,026 7,014 6,512 6,678 7,142 6,873 6,528 6,413 32 Banks in foreign countries 8,349 7,852 7,798 7,808 7,924 7,920 7,592 7,908 7,832 33 Sales finance, personal finance companies, etc 9,543 9,027 9,335 8,894 9,323 9,322 9,354 8,826 8,916 34 Other financial institutions 15,652 15,654 15,393 14,958 15,205 15,285 15,259 15,148 15,009 35 To nonbank brokers and dealers in securities 9,123 9,189 9,154 8,257 9,725 9,386 8,539 8,492 8,580 36 To others for purchasing and carrying securities2 .... 2,609 2,698 2,693 2,685 2,743 2,836 2,841 2,849 2,816 37 To finance agricultural production 6,748 6,768 6,801 6,844 6,845 6,802 6,799 6,846 6,856 38 All other 15,998 14,909 15,581 14,881 16,089 16,762 15,246 15,145 15,164 39 LESS: Unearned income 4,505 4,536 4,538 4,542 4,558 4,488 4,495 4,471 4,469 40 Loan loss reserve 7,884 7,973 7,940 7,923 7,882 7,830 7,805 7,835 7,885 41 Other loans, net 459,342 455,098 456,963 455,052 458,370 460,931 457,558 457,314 456,408 42 Lease financing receivables 10,635 10,622 10,628 10,592 10,648 10,466 10,533 10,466 10,470 43 All other assets 135,300 134,362 136,233 135,369 136,626 144,389 139,547 136,991 135,220 44 Total assets 877,990 842,018 861,881 847,531 854,389 884,131 856,361 853,045 845,252 Deposits 45 Demand deposits 187,926 158,933 179,056 159,456 168,368 181,331 164,274 161,896 161,077 46 Mutual savings banks 790 605 749 595 562 791 613 715 584 47 Individuals, partnerships, and corporations 139,611 122,199 132,511 120,886 124,452 134,726 126,380 122,291 123,004 48 States and political subdivisions 4,888 3,981 5,172 4,468 4,949 4,743 4,165 4,156 4,430 49 U.S. government 1,012 1,998 7,611 2,002 1,827 3,048 823 2,550 1,876 50 Commercial banks in the United States 23,914 16,653 17,950 17,392 19,167 21,888 17,138 18,079 16,480 51 Banks in foreign countries 6,627 5,750 5,717 5,920 6,218 6,524 6,174 5,803 5,765 52 Foreign governments and official institutions 996 854 1,148 1,095 1,189 1,095 1,043 904 868 53 Certified and officers' checks 10,087 6,894 8,199 7,098 10,004 8,516 7,939 7,396 8,071 54 Time and savings deposits 381,818 383,910 382,830 383,120 384,240 385,682 384,588 384,457 383,789 55 Savings 161,877 162,659 162,648 160,851 160,630 163,033 161,826 161,328 160,409 56 Individuals and nonprofit organizations 145,021 145,738 145,661 143,833 143,433 146,303 145,013 144,563 143,578 57 Partnerships and corporations operated for profit .. 15,701 15,854 15,811 15,951 16,040 15,712 15,778 15,784 15,837 58 Domestic governmental units 1,061 978 1,095 1,007 1,082 972 983 926 924 59 All other 94 89 82 60 74 45 51 54 70 60 Time 219,941 221,251 220,182 222,269 223,610 222,649 222,762 223,130 223,379 61 Individuals, partnerships, and corporations 193,297 194,396 193,970 195,998 197,505 197,502 197,583 198,168 198,654 62 States and political subdivisions 16,459 16,401 15,842 15,770 15,636 15,024 15,059 15,008 14,924 63 U.S. government 249 244 237 289 293 223 228 226 228 64 Commercial banks in the United States 6,700 6,878 6,792 6,800 6,815 6,590 6,581 6,430 6,316 65 Foreign governments, official institutions, and banks 3,235 3,332 3,341 3,413 3,361 3,309 3,310 3,298 33,,225588 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,159 18 3,479 728 985 823 2,158 1,532 330 67 Treasury tax-and-loan notes 5,594 628 963 13,334 13,542 12,832 13,482 12,406 13,139 68 All other liabilities for borrowed money3 162,353 161,726 159,102 153,090 149,328 163,933 152,748 152,865 146,896 69 Other liabilities and subordinated notes and debentures 82,400 79,979 79,872 81,204 81,520 82,447 81,909 82,835 83,201 70 Total liabilities 821,251 785,194 805,304 790,933 797,984 827,049 799,159 795,992 788,431 71 Residual (total assets minus total liabilities)4 56,739 56,824 56,577 56,598 56,405 57,082 57,202 57,053 56,821 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

A22 Domestic Nonfinancial Statistics • August 1983 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1983 June 1 June 8 June 15 June 22 June 29P July 6p July 13? July 20p July 21 p 1 Cash items in process of collection 24,749 14,670 21,142 15,756 20,426 18,333 17,270 15,348 17,454 2 Demand deposits due from banks in the United States.. 1,593 950 999 952 1,114 1,327 1,015 1,204 1,045 3 All other cash and due from depository institutions 6,131 6,631 6,295 7,195 5,778 5,679 8,965 7,594 5,212 4 Total loans and securities1 148,649 143,459 144,793 142,005 144,238 147,043 143,658 142,440 141,740 Securities 5 6 7 Investment account, by maturity 9,529 9,476 9,488 9,088 9,094 9,109 8,265 8,268 7,601 8 One year or less 2,453 2,532 2,539 2,456 2,571 2,083 1,851 1,871 1,859 9 Over one through five years 6,569 6,478 6,508 6,182 6,080 6,362 5,800 5,829 5,178 10 Over five years 508 466 442 450 442 664 614 568 564 11 1? 13 Investment account 14,151 14,179 14,213 14,166 14,252 14,210 14,317 14,498 14,844 14 U.S. government agencies 1,532 1,520 1,556 1,556 1,525 1,527 1,532 1,542 1,550 IS States and political subdivisions, by maturity 11,813 11,849 11,858 11,804 11,922 11,876 11,978 12,125 12,496 16 One year or less 1,517 1,509 1,519 1,473 1,506 1,548 1,530 1,607 1,942 17 Over one year 10,296 10,340 10,338 10,331 10,416 10,328 10,448 10,518 10,554 18 Other bonds, corporate stocks and securities 806 810 799 804 806 807 806 830 798 Loans 19 Federal funds sold3 13,751 11,749 11,715 10,467 11,594 12,247 11,355 10,521 10,590 20 To commercial banks 8,687 6,758 6,048 5,759 6,238 6,740 6,378 5,506 5,354 21 To nonbank brokers and dealers in securities 3,820 3,660 4,004 3,352 4,110 3,942 3,445 3,241 3,745 22 To others 1,244 1,331 1,663 1,356 1,246 1,565 1,532 1,774 1,491 23 Other loans, gross 115,1% 112,070 113,366 112,276 113,322 115,421 113,668 113,102 112,706 24 Commercial and industrial 58,094 57,088 57,730 58,258 57,242 58,458 58,760 58,494 58,670 25 Bankers' acceptances and commercial paper 1,111 1,076 916 1,189 1,024 1,076 1,324 1,026 942 26 All other 56,983 56,012 56,814 57,069 56,218 57,382 57,436 57,468 57,728 27 U.S. addressees 55,480 54,395 55,203 55,447 54,668 55,791 55,784 55,898 56,130 28 Non-U.S. addressees 1,503 1,617 1,610 1,622 1,550 1,591 1,653 1,570 1,598 29 Real estate 19,557 19,407 19,440 19,480 19,482 19,505 19,546 19,546 19,506 30 To individuals for personal expenditures 11,575 11,574 11,634 11,681 11,761 11,822 1111,,881100 1111,,883300 1111,,888855 To financial institutions 31 Commercial banks in the United States 2,314 1,862 1,739 1,470 1,496 2,235 1,752 1,320 1,509 32 Banks in foreign countries 3,153 2,735 2,790 2,914 2,868 2,906 2,528 2,715 2,541 33 Sales finance, personal finance companies, etc 3,959 3,622 3,890 3,638 3,891 3,800 3,859 3,598 3,710 34 Other financial institutions 4,739 4,580 4,557 4,400 4,475 4,364 4,347 4,431 4,356 35 To nonbank brokers and dealers in securities 5,968 5,895 6,140 5,238 6,325 6,008 5,389 5,767 5,427 36 To others for purchasing and carrying securities4 .... 543 620 617 626 661 735 708 695 642 37 To finance agricultural production 466 472 471 473 468 458 434 438 432 38 All other 4,827 4,215 4,356 4,098 4,652 5,130 4,535 4,267 4,027 39 LESS: Unearned income 1,392 1,400 1,403 1,415 1,428 1,408 1,420 1,426 1,430 40 Loan loss reserve 2,586 2,615 2,586 2,578 2,596 2,536 2,527 2,523 2,572 41 Other loans, net 111,217 108,055 109,376 108,284 109,298 111,477 109,721 109,153 108,704 42 Lease financing receivables 2,017 2,002 2,014 2,001 2,001 1,989 2,077 2,076 2,075 43 All other assets5 58,847 59,635 61,515 61,628 61,121 66,675 59,994 58,933 57,663 44 Total assets 241,986 227,346 236,758 229,537 234,678 241,046 232,979 227,595 225,190 Deposits 45 Demand deposits 60,696 46,106 54,164 47,190 52,236 53,159 48,321 46,574 48,140 46 Mutual savings banks 374 282 419 300 255 395 278 396 289 47 Individuals, partnerships, and corporations 40,117 31,590 35,587 31,662 33,029 35,168 32,390 31,063 33,028 48 States and political subdivisions 833 811 1,185 927 908 883 815 832 757 49 U.S. government 210 562 2,603 506 457 859 171 625 554 50 Commercial banks in the United States 7,356 4,342 4,900 4,674 6,060 5,676 4,806 5,022 4,052 51 Banks in foreign countries 5,256 4,426 4,361 4,668 4,977 5,184 4,891 4,264 4,391 52 Foreign governments and official institutions 801 659 932 888 949 849 845 697 657 53 Certified and officers' checks 5,749 3,433 4,176 3,564 5,601 4,146 4,126 3,674 4,411 54 Time and savings deposits 73,003 73,018 72,560 72,194 72,436 72,886 73,124 73,223 72,640 55 Savings 29,333 29,606 29,834 29,591 29,684 29,682 29,511 29,466 29,232 56 Individuals and nonprofit organizations 26,395 26,663 26,798 26,572 26,651 27,042 26,860 26,790 26,607 57 Partnerships and corporations operated for profit .. 2,673 2,710 2,763 2,784 2,764 2,415 2,417 2,441 2,377 58 Domestic governmental units 196 177 217 201 231 199 205 203 197 59 All other 68 57 56 34 38 26 28 32 50 60 Time 43,669 43,412 42,727 42,603 42,752 43,204 43,613 43,758 43,408 61 Individuals, partnerships, and corporations 37,070 36,489 35,834 35,783 35,990 36,802 37,210 37,445 37,197 62 States and political subdivisions 2,121 2,131 2,094 2,018 2,028 1,903 1,962 2,047 2,059 63 U.S. government 39 39 41 83 90 15 22 21 23 64 Commercial banks in the United States 3,128 3,378 3,342 3,246 3,225 3,074 33,,002200 22,,884400 22,,772288 65 Foreign governments, official institutions, and banks 1,311 1,374 1,416 1,474 1,420 1,410 11,,440000 11,,440044 11,,440011 Liabilities for borrowed money 66 1,375 925 67 Treasury tax-and-loan notes 1,249 110 148 3,120 3,336 3,003 3,343 3,063 3,334 68 All other liabilities for borrowed money6 53,007 55,683 55,969 53,989 52,753 58,105 53,542 51,073 47,397 69 Other liabilities and subordinated notes and debentures . 34,444 32,782 32,985 33,486 34,563 34,291 34,067 34,016 34,240 70 Total liabilities 222,398 207,700 217,201 209,979 215,325 221,444 213,322 207,949 205,751 71 Residual (total assets minus total liabilities)7 19,587 19,646 19,557 19,558 19,353 19,601 19,658 19,646 19,438 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 A23 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1983 AAccccoouunntt June 1 June 8 June 15 June 22 June 29? July 6p July 13 p July 20^ July 27p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 643,038 641,782 643,441 639,320 643,146 647,274 637,783 639,624 638,119 2 Total loans (gross) adjusted1 505,058 501,871 504,572 501,637 506,189 508,360 504,296 504,871 504,615 3 Demand deposits adjusted2 105,580 106,455 106,410 103,220 104,007 107,831 107,839 104,669 105,221 4 Time deposits in accounts of $100,000 or more 141,870 143,009 141,773 143,895 144,828 143,730 143,297 143,188 143,063 5 Negotiable CDs 94,270 94,942 93,840 95,700 96,692 95,739 94,537 93,956 93,756 6 Other time deposits 47,600 48,067 47,933 48,196 48,136 47,991 48,760 49,232 49,307 7 Loans sold outright to affiliates3 2,735 2,777 2,792 2,721 2,693 2,634 2,666 2,682 2,636 8 Commercial and industrial 2,130 2,173 2,161 2,149 2,120 2,066 2,080 2,098 2,033 9 Other 606 604 631 572 573 568 586 584 602 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 599,642 598,352 599,760 595,690 599,240 603,234 593,814 595,278 593,850 11 Total loans (gross) adjusted1 473,885 470,750 473,213 470,371 474,768 476,724 472,695 473,112 472,836 12 Demand deposits adjusted2 97,733 98,520 98,574 95,440 96,230 99,977 99,644 96,661 97,345 13 Time deposits in accounts of $100,000 or more 133,796 134,824 133,590 135,523 136,463 135,490 135,036 134,926 134,724 14 Negotiable CDs 89,834 90,399 89,308 91,012 91,984 91,101 89,910 89,338 89,086 15 Other time deposits 43,961 44,425 44,282 44,511 44,480 44,390 45,126 45,588 45,638 16 Loans sold outright to affiliates3 2,683 2,726 2,738 2,666 2,638 2,580 2,615 2,633 2,587 17 Commercial and industrial 2,089 2,132 2,117 2,105 2,076 2,023 2,037 2,057 1,991 18 Other 594 594 621 562 562 557 578 576 596 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted14 141,628 138,854 140,995 138,768 140,528 142,012 139,474 139,564 138,879 20 Total loans (gross) adjusted1 117,947 115,199 117,293 115,514 117,182 118,693 116,892 116,798 116,433 21 Demand deposits adjusted2 28,380 26,531 25,518 26,254 25,292 28,291 26,074 25,578 26,079 22 Time deposits in accounts of $100,000 or more 33,260 32,957 32,265 32,237 32,353 32,683 32,939 33,034 32,583 23 Negotiable CDs 23,098 22,751 22,061 22,083 22,165 22,356 22,207 22,095 21,785 24 Other time deposits 10,162 10,206 10,205 10,154 10,188 10,328 10,731 10,939 10,799 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, banks. nonconsolidated nonbank affiliates of the bank, the bank's holding company (if 2. All demand deposits except U.S. government and domestic banks less cash not a 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

A24 Domestic Nonfinancial Statistics • August 1983 1.30 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt June 1 June 8 June 15 June 22 June 29p July 6p July 13P July 20p July 27p 1 Cash and due from depository institutions. 7,114 7,161 7,006 7,287 7,530 7,536 7,517 7,340 7,399 2 Total loans and securities 41,550 41,889 40,880 41,272 42,019 41,422 40,350 41,797 40,668 3 U.S. Treasury securities 4,353 4,366 4,336 4,337 4,425 4,489 4,407 4,396 4,369 4 Other securities 875 858 850 855 860 865 858 858 927 5 Federal funds sold1 3,132 2,991 1,718 2,312 2,862 2,629 2,028 2,413 1,850 6 To commercial banks in United States .. 2,960 2,806 1,595 2,296 2,737 2,386 1,916 2,293 1,774 7 To others 172 185 123 16 126 243 113 120 76 8 Other loans, gross 33,190 33,674 33,976 33,767 33,871 33,439 33,057 34,130 33,522 9 Commercial and industrial 17,453 17,748 1177,,772288 17,460 1177,,224433 1177,,226644 1177,,338822 18,323 1188,,113322 10 Bankers acceptances and commercial paper 2,521 2,611 2,571 2,659 2,849 2,817 2,856 2,981 3,020 11 All other 14,932 15,137 15,156 14,801 14,394 14,447 14,526 15,342 15,112 12 U.S. addressees 13,086 13,273 13,326 12,890 12,687 12,732 12,792 13,591 13,327 13 Non-U.S. addressees 1,846 1,864 1,830 1,911 1,706 1,715 1,734 1,751 1,785 14 To financial institutions 11,849 11,868 12,139 12,256 12,358 12,140 11,846 11,707 11,485 15 Commercial banks in United States... 8,844 9,126 9,448 9,695 9,843 9,470 9,400 9,370 9,213 16 Banks in foreign countries 2,372 2,166 2,100 1,955 1,948 2,010 1,870 1,740 1,686 17 Nonbank financial institutions 632 576 590 605 567 660 576 597 586 18 For purchasing and carrying securities .. 221 444 328 362 449 249 220 342 185 19 All other 3,667 3,613 3,781 3,689 33,,882211 33,,778866 33,,660099 33,,775577 33,,772200 20 Other assets (claims on nonrelated parties) 9,768 10,007 10,234 10,085 10,309 10,111 10,237 11,009 10,803 21 Net due from related institutions 11,355 10,351 10,753 9,778 10,166 12,530 11,826 12,142 12,469 22 Total assets 69,787 69,409 68,872 68,422 70,024 71,599 69,930 72,289 71,339 23 Deposits or credit balances2 21,459 21,819 21,214 20,974 21,132 20,428 20,165 20,195 20,599 24 Credit balances 207 160 268 186 206 203 158 155 168 25 Demand deposits 2,010 1,820 1,912 1,981 2,038 2,034 1,875 11,,993344 11,,886644 26 Individuals, partnerships, and corporations 977 814 961 888 915 985 892 933 942 27 Other 1,033 1,006 951 1,092 1,123 1,049 983 1,001 922 28 Total time and savings 19,241 19,839 19,034 18,807 18,888 18,190 18,131 1188,,110066 1188,,556677 29 Individuals, partnerships, and corporations 16,582 16,834 16,148 15,810 16,190 15,431 15,382 15,088 15,752 30 Other 2,660 3,004 2,886 2,997 2,699 2,759 2,750 3,017 2,816 31 Borrowings3 29,582 28,564 28,914 28,285 28,928 32,293 30,256 32,947 32,826 32 Federal funds purchased4 9,585 8,685 8,685 8,146 7,692 12,194 9,793 1111,,001188 1111,,001188 33 From commercial banks in United States 8,035 7,274 7,276 6,717 6,310 10,520 7,954 9,239 9,100 34 From others 1,550 1,411 1,410 1,429 1,382 1,674 1,838 1,779 1,918 35 Other liabilities for borrowed money 19,997 19,879 20,228 20,139 21,236 20,099 20,463 21,929 21,808 36 To commercial banks in United States 17,104 16,887 17,271 17,300 18,373 17,211 17,696 18,137 17,750 37 To others 2,892 2,992 2,957 2,839 2,863 2,888 2,767 3,792 4,058 38 Other liabilities to nonrelated parties 10,996 11,199 11,121 11,003 11,245 11,203 11,180 11,400 11,447 39 Net due to related institutions 7,750 7,826 7,623 8,160 8,719 7,674 8,329 7,747 6,467 40 Total liabilities 69,787 69,409 68,872 68,422 70,024 71,599 69,930 72,289 71,339 MEMO 41 Total loans (gross) and securities adjusted' 29,746 29,956 29,837 29,280 29,439 29,566 29,035 30,134 29,680 42 Total loans (gross) adjusted5 24,518 24,732 24,651 24,088 24,153 24,212 23,770 24,880 24,384 1. Includes securities purchased under agreements to resell. 4. Includes securities sold under agreements to repurchase. 2. Balances due to other than directly related institutions. 5. Excludes loans and federal funds transactions with commercial banks in 3. Borrowings from other than directly related institutions. United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A25 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1981 1982 11997788 1199779922 11998800 DDeecc.. DDeecc.. DDeecc.. June3 Sept. Dec. Mar. June Sept. Dec. 1 All holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 f 277.5 288.9 268.9 271.5 276.7 295.4 ? Financial business 27.8 27.1 29.8 1 28.2 28.0 27.8 28.6 31.9 35.5 3 Nonfinancial business 152.7 157.7 162.3 n.a. 148.6 154.8 138.7 141.4 142.9 151.7 4 5 C Fo o r n e s i u g m n er 9 2 7 . . 7 4 9 3 9 . . 1 2 10 3 2 . . 3 4 1 1 8 3 2 . . 1 1 8 2 6 . . 9 6 8 3 4 . . 1 6 8 2 3. . 7 9 8 2 3 . . 9 3 8 3 8. . 1 0 6 Other 14.1 15.1 17.2 I 15.5 16.7 14.6 15.0 15.7 17.1 Weekly reporting banks 1981 1982 11997788 1199779944 11998800 DDeecc.. DDeecc.. DDeecc.. June3 Sept. Dec. Mar. June Sept. Dec. 7 All holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 131.3 137.5 126.8 127.9 132.1 144.0 8 Financial business 19.8 20.1 21.8 n a. 20.7 21.0 20.2 20.2 23.4 26.7 9 Nonfinancial business 79.0 74.1 78.3 71.2 75.2 67.1 67.7 68.7 74.2 10 Consumer 38.2 34.3 35.6 28.7 30.4 29.2 29.7 29.6 31.9 11 Foreign 2.5 3.0 3.1 2.9 2.8 2.9 2.8 2.7 2.9 12 Other 7.5 7.8 8.6 7.9 8.0 7.3 7.5 7.7 8.4 1. Figures include cash items in process of collection. Estimates of gross 3. Demand deposit ownership survey estimates for June 1981 are not available deposits are based on reports supplied by a sample of commercial banks. Types of due to unresolved reporting errors. depositors in each category are described in the June 1971 BULLETIN, p. 466. 4. 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 170 large commercial banks, each of which had total assets in domestic offices survey sample was reduced to 232 banks from 349 banks, and the estimation exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the procedure was modified slightly. To aid in comparing estimates based on the old May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership and new reporting sample, the following estimates in billions of dollars for estimates for these large banks are constructed quarterly on the basis of 97 sample December 1978 have been constructed using the new smaller sample; financial banks and are not comparable with earlier data. The following estimates in billions business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and of dollars for December 1978 have been constructed for the new large-bank panel; other, 15.1. financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; other, 6.8. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • August 1983 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1983 IInnssttrruummeenntt D 19 e 7 c 8 . 1 D 9 e 7 c 9 . 1 D 19 e 8 c 0 . D 19 e 8 c 1 . D 1 e 9 c 8 . 2 2 Jan. Feb. Mar. Apr. May June Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,455 166,208 165,257 168,562 167,665 170,659 169,503 170,716 Financial companies3 Dealer-placed paper4 2 Total 12,181 17,359 19,599 29,904 34,067 35,444 37,593 36,255 37,481 3388,,664455 39,850 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 2,660 2,604 2,030 1,950 11,,995544 2,192 Directly placed paper5 4 Total 51,647 64,757 67,854 81,715 84,183 82,948 84,932 85,773 87,831 87,238 87,749 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 31,691 31,661 32,951 32,495 32,943 33,420 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,958 46,865 46,037 45,637 45,347 43,620 43,117 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 77,529 73,706 70,843 70,389 68,797 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 10,249 9,567 10,518 9,494 8,223 9 Own bills 7,653 8,327 8,963 9,743 9,471 9,067 8,258 9,083 7,951 7,497 10 Bills bought 927 1,538 1,601 1,115 1,439 1,182 1,308 1,435 1,543 726 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 0 0 0 0 0 n.a. 12 Foreign correspondents 664 1,382 1,791 1,442 949 965 1,003 758 778 788 13 Others 23,870 33,370 41,614 56,926 66,204 66,315 63,136 59,568 60,118 59,786 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 15,803 14,976 14,217 14,418 13,858 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 17,931 17,633 16,826 17,124 16,074 16 All other 17,540 25,411 30,257 39,061 45,532 43,794 41,097 39,800 38,848 38,865 1. A change in reporting instructions results in offsetting shifts in the dealer- financing; factoring, finance leasing, and other business lending; insurance placed and directly placed financial company paper in October 1979. underwriting; and other investment activities. 2. Effective December 1, 1982, there was a break in the commercial paper 4. Includes all financial company paper sold by dealers in the open market. series. The key changes in the content of the data involved additions to the 5. As reported by financial companies that place their paper directly with reporting panel, the exclusion of broker or dealer placed borrowings under any investors. master note agreements from the reported data, and the reclassification of a large 6. Includes public utilities and firms engaged primarily in such activities as portion of bank-related paper from dealer-placed to directly placed. communications, construction, manufacturing, mining, wholesale and retail trade, 3. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial, savings, and mortgage banking; sales, personal, and mortgage 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Effective Date Rate Month Average Month rate 1981—Nov. 24 16.00 1982—Aug. 23 13.50 1982—Jan. 15.75 1982-—Nov Dec. 1 15.75 Oct. 7 13.00 Feb. 16.56 Dec 14 12.00 Mar. 16.50 1982—Feb. 18 17.00 Nov. 22 11.50 Apr. 16.50 1983-—Jan 23 16.50 May 16.50 Feb July 20 16.00 June 16.50 Mar Aug. 2 2 9 1 1 5 5 . . 5 0 0 0 1983—Jan. 11 11.00 J A u u ly g . 1 14 6 . . 3 2 9 6 A M p a r y 1 18 6 1 1 4 4 . . 5 0 0 0 F A e u b g . . 28 8 1 1 0 1 . .0 50 0 O Se c p t. t , 1 12 3 . . 5 5 2 0 J Ju u l n y e Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Business Lending A27 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 2-6, 1983 Size of loan (in thousands of dollars) All Item sizes 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 37,412,526 1,048,071 837,428 1,106,290 2,183,547 1,037,743 31,199,446 7 Number of loans 200,209 139,045 25,153 17,287 12,630 1,571 4,522 3 Weighted-average maturity (months) 1.4 4.0 4.2 4.5 5.0 3.3 ..88 4 With fixed rates .9 3.4 3.7 3.3 4.7 2.0 ..55 5 With floating rates 2.3 5.5 5.3 5.9 5.1 4.1 1.6 6 Weighted-average interest rate (percent per annum).. 10.31 13.86 13.68 12.62 11.87 11.34 9.87 7 Interquartile range1 9.55-10.52 12.68-14.49 12.34-14.11 11.57-13.80 11.02-12.47 10.92-12.10 9.52-9.96 8 With fixed rates 10.21 14.39 14.36 13.29 11.86 10.72 9.80 9 With floating rates 10.46 12.96 12.55 12.00 11.87 11.58 10.00 Percentage of amount of loans 10 With floating rate 40.1 36.6 37.6 5511..99 6633..55 7711..66 3377..22 11 Made under commitment 65.6 39.5 37.9 61.4 54.2 70.5 68.0 12 With no stated maturity 13.4 12.7 18.1 16.9 29.7 32.2 11.4 13 With one-day maturity 37.3 .1 .0 .1 .4 2.1 44.6 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 4,113,314 775,809 418,758 178,643 2,740,104 15 Number of loans 38,455 35,820 1,990 262 383 16 Weighted-average maturity (months) 55.6 33.4 35.6 44.5 65.6 17 With fixed rates 43.5 36.9 21.9 58.2 54.7 18 With floating rates 61.5 26.3 46.4 42.0 6688..88 19 Weighted-average interest rate (percent per annum) .. 11.46 14.52 12.87 11.92 1100..3355 20 Interquartile range1 9.71-12.19 12.13-14.93 11.73-14.00 11.19-12.68 9.63-11.02 ?1 With fixed rates 12.31 15.02 13.78 11.96 9.61 22 With floating rates 11.04 13.51 12.15 11.92 10.56 Percentage of amount of loans 23 With floating rate 67.2 33.0 5566..11 8844..77 7777..44 24 Made under commitment 71.8 18.3 42.7 75.9 91.2 11--2244 2255--4499 5500--9999 CCOONNSSTTRRUUCCTTIIOONN AANNDD LLAANNDD DDEEVVEELLOOPPMMEENNTT LLOOAANNSS 25 Amount of loans (thousands of dollars) 1,917,014 199,628 77,218 47,315 438,205 1,154,649 26 Number of loans 25,727 21,047 2,219 716 1,460 284 27 Weighted-average maturity (months) 8.3 5.8 7.1 13.8 7.6 8.9 28 With fixed rates 5.2 5.7 6.8 8.6 6.1 4.4 29 With floating rates 12.2 5.9 8.0 14.8 11.3 12.9 30 Weighted-average interest rate (percent per annum) .. 11.72 14.44 13.99 12.91 12.08 10.91 31 Interquartile range1 10.18-12.68 13.50-14.74 13.52-14.76 12.46-13.31 11.84-12.12 9.55-12.41 3? With fixed rates 11.53 14.97 14.42 13.16 11.93 10.01 33 With floating rates 11.93 13.34 12.93 12.87 12.46 11.59 Percentage of amount of loans 34 With floating rate 47.7 3322..22 28.8 8855..00 2299..55 5566..99 35 Secured by real estate 56.7 75.3 94.1 84.2 93.5 36.0 36 Made under commitment 48.3 41.5 61.9 64.8 22.4 57.7 37 With no stated maturity 6.9 10.7 2.8 7.0 2.5 8.2 38 With one-day maturity 18.0 .0 .0 .4 .0 29.9 Type of construction 39 1- to 4-family 7.3 20.2 17.2 46.1 8.3 22..44 40 Multifamily 5.5 14.6 6.1 17.2 7.4 2.6 41 Nonresidential : 87.2 65.1 76.7 36.7 84.3 95.0 AAllll ssiizzeess 1-9 1100--2244 25-49 50-99 100-249 250 and over LLOOAANNSS TTOO FFAARRMMEERRSS 42 Amount of loans (thousands of dollars) 1,698,648 195,436 204,859 168,982 254,228 240,631 634,513 43 Number of loans 79,848 54,748 13,889 5,146 3,625 1,724 717 44 Weighted-average maturity (months) 10.6 6.8 8.8 8.0 7.7 29.4 7.0 45 Weighted-average interest rate (percent per annum) .. 13.26 14.01 13.80 13.60 14.23 13.68 12.21 46 Interquartile range1 12.13-14.21 13.43-14.56 13.29-14.18 12.96-14.20 13.42-15.19 13.00-14.45 11.83-12.55 By purpose of loan 47 Feeder livestock 13.35 14.26 13.90 1133..4444 14.36 1133..7711 1122..1177 48 Other livestock 13.00 14.01 12.96 13.75 13.26 (2) (2) 49 Other current operating expenses 13.25 13.98 13.59 13.80 13.54 13.76 12.35 50 Farm machinery and equipment 14.78 13.90 15.01 13.64 15.68 14.16 (2) 51 Other 12.62 14.19 14.08 12.97 13.75 13.74 12.03 1. Interest rate range that covers the middle 50 percent of the total dollar NOTE. For more detail, see the Board's E.2 (111) statistical release, amount of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • August 1983 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. 1983 1983, week ending IInnssttrruummeenntt 11998800 11998811 11998822 Apr. May June July July 1 July 8 July 15 July 22 July 29 MONEY MARKET RATES 1 Federal funds12 13.36 16.38 12.26 8.80 8.63 8.98 9.37 8.90 9.39 9.21 9.43 99..4466 Commercial paper3,4 2 1-month 12.76 15.69 11.83 8.58 8.36 8.97 9.15 9.14 9.13 9.15 9.18 9.17 3 3-month 12.66 15.32 11.89 8.53 8.33 9.00 9.25 9.11 9.21 9.26 9.28 9.30 4 6-month 12.29 14.76 11.89 8.48 8.31 9.03 9.36 9.11 9.27 9.37 9.41 9.46 Finance paper, directly placed3-4 5 1-month 12.44 15.30 11.64 8.52 8.28 8.86 9.13 8.80 9.10 9.20 9.07 9.16 6 3-month 11.49 14.08 11.23 8.41 8.19 8.81 9.11 9.02 9.01 9.11 9.16 9.16 / 6-month 11.28 13.73 11.20 8.41 8.15 8.80 9.10 9.02 9.03 9.09 9.15 9.15 Bankers acceptances4-5 8 3-month 12.72 15.32 11.89 8.49 8.36 9.04 9.33 9.08 9.28 9.39 9.34 9.39 9 6-month 12.25 14.66 11.83 8.43 8.33 9.06 9.47 9.12 9.35 9.53 9.46 9.60 Certificates of deposit, secondary market6 10 1-month 12.91 15.91 12.04 8.60 8.44 9.06 9.30 9.21 9.32 9.30 9.32 9.30 11 3-month 13.07 15.91 12.27 8.63 8.49 9.20 9.50 9.28 9.47 9.51 9.53 9.54 12 6-month 12.99 15.77 12.57 8.76 8.62 9.45 9.91 9.49 9.80 9.94 9.94 10.05 13 Eurodollar deposits, 3-month2 14.00 16.79 13.12 9.23 8.96 9.67 10.00 9.79 9.79 10.05 10.04 10.04 U.S. Treasury bills4 Secondary market7 14 3-month 11.43 14.03 10.61 8.21 8.19 8.79 9.08 8.88 9.07 9.10 9.10 9.13 15 6-month 11.37 13.80 11.07 8.30 8.22 8.89 9.26 8.97 9.24 9.30 9.24 9.33 16 1-year 10.89 13.14 11.07 8.29 8.23 8.87 9.34 8.98 9.27 9.39 9.33 9.44 Auction average8 17 3-month 11.506 14.029 10.686 8.252 8.19 8.82 9.12 9.09 9.10 9.07 9.19 9.13 18 6-month 11.374 13.776 11.084 8.343 8.20 8.89 9.29 9.14 9.20 9.26 9.37 9.31 19 1100..774488 1133..115599 1111..009999 88..227755 88..0055 88..8800 99..3366 99..3366 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 12.05 14.78 12.27 8.98 8.90 9.66 10.20 9.78 10.12 10.27 10.18 10.31 ',>1 10.05 10.55 10 70 22 2-vear 11.77 14.56 12.80 9.57 9.49 10.18 10.69 10.29 10.57 10.71 10.70 10.83 n 2-Vi-year12 10.40 10.85 11 00 24 3-year 11.55 14.44 12.92 9.76 9.66 10.32 10.90 10.47 10.77 10.92 10.93 11.06 25 5-year 11.48 14.24 13.01 10.02 10.03 10.63 11.21 10.80 11.07 11.22 11.22 11.39 26 7-year 11.43 14.06 13.06 10.29 10.30 10.83 11.35 10.96 11.24 11.37 11.32 11.53 27 10-year 11.46 13.91 13.00 10.40 10.38 10.85 11.38 11.01 11.25 11.40 11.36 11.57 28 20-year 11.39 13.72 12.92 10.63 10.67 11.12 11.59 11.26 11.49 11.60 11.55 11.78 29 30-year 11.30 13.44 12.76 10.48 10.53 10.93 11.40 11.07 11.29 11.41 11.36 11.59 Composite13 30 Over 10 years (long-term) 10.81 12.87 12.23 10.19 10.21 10.64 11.10 10.77 11.01 11.12 11.07 11.27 State and local notes and bonds Moody's series'4 31 Aaa 7.85 10.43 10.88 8.28 8.39 8.76 8.70 8.60 8.60 8.65 8.65 8.90 32 Baa 9.01 11.76 12.48 9.75 9.74 10.21 10.06 10.05 10.05 10.10 10.00 10.10 33 Bond Buyer series15 8.59 11.33 11.66 9.05 9.11 9.52 9.53 9.36 9.55 9.54 9.44 9.60 Corporate bonds Seasoned issues16 34 All industries 12.75 15.06 14.94 12.44 12.30 12.54 12.73 12.58 12.67 12.73 12.74 12.81 35 Aaa 11.94 14.17 13.79 11.51 11.46 11.74 12.15 11.85 12.02 12.13 12.17 12.31 36 Aa 12.50 14.75 14.41 12.06 11.95 12.15 12.39 12.16 12.29 12.39 12.43 12.50 37 A 12.89 15.29 15.43 12.86 12.68 12.88 12.99 12.91 12.95 13.00 12.99 13.03 38 Baa 13.67 16.04 16.11 13.29 13.09 13.37 13.39 13.39 13.42 13.41 13.36 13.39 Aaa utility bonds17 39 12.74 15.56 14.41 11.41 11.32 11.87 12.32 12.13 12.50 40 Recently offered issues 12.70 15.56 14.45 11.50 11.37 11.81 12.39 12.00 12.25 12.30 12.37 12.62 MEMO: Dividend/price ratio18 41 Preferred stocks 10.60 12.36 12.53 10.80 10.65 10.81 11.06 11.00 11.09 11.13 11.02 10.99 42 Common stocks 5.26 5.20 5.81 4.44 4.27 4.26 4.21 4.24 4.20 4.27 4.17 4.21 1. Weekly and monthly figures are averages of all calendar days, where the 11. Each biweekly figure is the average of five business days ending on the rate for a weekend or holiday is taken to be the rate prevailing on the preceding Monday following the date indicated. Beginning Apr. 1, 1983, this rate determines business day. The daily rate is the average of the rates on a given day weighted by the maximum interest payable in the following two-week period on 1-Vi-year small the volume of transactions at these rates. saver certificates. (See table 1.16.) 2. Weekly figures are statement week averages—that is, averages for the 12. Each biweekly figure is the average of five business days ending on the week ending Wednesday. Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate 3. Unweighted average of offering rates quoted by at least five dealers (in the determined the maximum interest rate payable in the following two-week period case of commercial paper), or finance companies (in the case of finance paper). on 2-'/2-year small saver certificates. (See table 1.16.) Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 13. Averages of yields (to maturity or call) for all outstanding bonds neither due and 120-179 days for commercial paper; and 30-59 days, 90—119 days, and 150— nor callable in less than 10 years, including several very low yielding "flower" 179 days for finance paper. bonds. 4. Yields are quoted on a bank-discount basis, rather than an investment yield 14. General obligations only, based on figures for Thursday, from Moody's basis (which would give a higher figure). Investors Service. 5. Dealer closing offered rates for top-rated banks. Most representative rate 15. General obligations only, with 20 years to maturity, issued by 20 state and (which may be, but need not be, the average of the rates quoted by the dealers). local governmental units of mixed quality. Based on figures for Thursday. 6. Unweighted average of offered rates quoted by at least five dealers early in 16. Daily figures from Moody's Investors Service. Based on yields to maturity the day. on selected long-term bonds. 7. Unweighted average of closing bid rates quoted by at least five dealers. 17. Compilation of the Federal Reserve. Issues included are long-term (20 8. Rates are recorded in the week in which bills are issued. Beginning with the years or more). New-issue yields are based on quotations on date of offering; Treasury bill auction held on Apr. 18, 1983, bidders were required to state the those on recently offered issues (included only for first 4 weeks after termination percentage yield (on a bank discount basis) that they would accept to two decimal of underwriter price restrictions), on Friday close-of-business quotations. places. Thus, average issuing rates in bill auctions will be reported using two 18. Standard and Poor's corporate series. Preferred stock ratio based on a rather than three decimal places. sample of ten issues: four public utilities, four industrials, one financial, and one 9. Yields are based on closing bid prices quoted by at least five dealers. transportation. 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, Digitized for FaRctAiveSlyE tRra ded securities. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A29 1.36 STOCK MARKET Selected Statistics 1982 1983 IInnddiiccaattoorr 11998800 11998811 11998822 Nov. Dec. Jan. Feb. Mar. Apr. May June July Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 68.06 74.02 68.93 79.75 80.30 83.25 84.74 87.50 90.61 94.61 96.43 96.74 2 Industrial 78.64 85.44 78.18 90.76 92.00 95.37 97.26 100.61 104.46 109.43 112.52 113.21 3 Transportation 60.52 72.61 60.41 71.92 73.40 75.65 79.44 83.28 85.26 89.07 92.22 92.91 4 Utility 37.35 38.90 39.75 43.46 42.93 45.59 45.92 45.89 46.22 47.62 46.76 46.61 5 Finance 64.28 73.52 71.99 88.66 86.22 85.66 86.57 93.22 99.07 102.45 101.22 99.60 6 Standard & Poor's Corporation (1941-43 = 10)' ... 118.71 128.05 119.71 138.10 139.37 145.13 146.80 151.88 157.71 164.10 166.39 166.96 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 150.47' 171.79' 141.31' 166.77' 166.68' 180.47' 187.17' 191.88' 202.51' 223.97' 237.51' 224444..0033 Volume of trading (thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 88,431 76,463 88,463 85,026 82,694 89,627 93,016 89,729 7799,,550088 9 American Stock Exchange 6,377 5,346 5,283 8,672 7,475 9,220 8,256 7,354 8,576 12,260 10,874 8,199 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers3 14,721 14,411 13,325 12,459 13,325 13,370 13,985 14,483 15,590 16,713 18,292 11 Margin stock4 14,500 14,150 12,980 12,170 12,980 13,070 13,680 14,170 15,260 16,370 17,930 12 Convertible bonds 219 259 344 288 344 299 304 312 329 342 361 n.a. 13 Subscription issues 2 2 1 1 1 1 1 1 1 1 1 Free credit balances at brokers5 14 Margin-account 2,105 3,515 5,735 5,600 5,735 6,257 6,195 6,370 6,090 6,090 6,150 15 Cash-account 6,070 7,150 8,390 8,395 8,390 8,225 7,955 7,965' 7,970 8,310 8,590 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)6 17 Under 40 14.0 37.0 21.0 20.0 21.0 18.0 18.0 17.0 14.0 14.0 13.0 18 40-49 30.0 24.0 24.0 21.0 24.0 23.0 20.0 21.0 19.0 19.0 21.0 19 50-59 25.0 17.0 24.0 25.0 24.0 25.0 27.0 25.0 28.0 30.0 29.0 n.a. 2 2 0 1 6 7 0 0 - -7 6 9 9 1 9 4 . . 0 0 1 6 0 . . 0 0 1 9 4 . . 0 0 1 1 5 0 . . 0 0 1 9 4 . . 0 0 1 9 6 . . 0 0 1 1 6 0 . . 0 0 1 1 8 0 . . 0 0 1 1 9 0 . . 0 0 1161..00 1 1 6 2 . . 0 0 22 80 or more 8.0 6.0 8.0 9.0 8.0 9.0 9.0 9.0 9.0 9.0 9.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)7 21,690 25,870 35,598 34,909 35,598 43,838 43,006 43,472 44,999 45,465 47,100 Distribution by equity status (percent) 24 Net credit status 47.8 58.0 62.0 62.0 62.0 65.0 66.0 62.0 64.0 62.0 62.0 n a. Debt status, equity of 2 2 6 5 6 L 0 e s p s e r th ce an n t 6 o 0 r p m er o c r e e n t 4 7 4 . . 7 4 3111..00 2 9 9 . . 0 0 2 9 9 . . 0 0 2 9 9 . . 0 0 2 8 8 . . 0 0 2 7 7 . . 0 0 2 9 8 . . 0 0 3 6 0 . . 0 0 3 6 2 . . 0 0 3 5 3 . . 0 0 Margin requirements (percent of market value and effective date)8 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 6. 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 7. 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 2. Beginning July 5, 1983, the American Stock Exchange rebased its index other collateral in the customer's margin account or deposits of cash (usually sales effectively cutting previous readings in half. proceeds) occur. 3. Margin credit includes all credit extended to purchase or cairy stocks or 8. Regulations G, T, and U of the Federal Reserve Board of Governors, related equity instruments and secured at least in part by stock. Credit extended is prescribed in accordance with the Securities Exchange Act of 1934, limit the end-of-month data for member firms of the New York Stock Exhange. amount of credit to purchase and carry margin stocks that may be extended on In addition to assigning a current loan value to margin stock generally, securities as collateral by prescribing a maximum loan value, which is a specified Regulations T and U permit special loan values for convertible bonds and stock percentage of the market value of the collateral at the time the credit is extended. acquired through exercise of subscription rights. Margin requirements are the difference between the market value (100 percent) 4. A distribution of this total by equity class is shown on lines 17-22. and the maximum loan value. The term "margin stocks" is defined in the 5. Free credit balances are in accounts with no unfulfilled commitments to the corresponding regulation. brokers and are subject to withdrawal by customers on demand. 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A30 Domestic Nonfinancial Statistics • August 1983 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 AAccccoouunntt 11998800 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June? Savings and loan associations 1 Assets 630,712 664,167 691,077 692,549 697,189 706,045 714,676 772,352 723,616 727,659 726,331 728,930 2 Mortgages 503,192 518,547 493,899 489,923 488,614 482,234 481,470 481,090 475,688 473,813 470,999 471,639 3 Cash and investment securities1 57,928 63,123 74,692 75,638 78,122 84,767 90,662 94,080 96,649 98,933 103,050 101,183 4 Other 69,592 82,497 122,486 126,988 130,453 139,044 142,544 147,182 151,279 152,913 152,282 156,108 5 Liabilities and net worth 630,712 664,167 691,077 692,549 697,189 706,045 714,676 772,352 723,616 727,659 726,331 728,930 6 Savings capital 511,636 525,061 547,628 547,112 548,439 566,189 582,918 591,913 597,112 600,508 598,168 601,307 7 Borrowed money 64,586 88,782 99,771 100,881 102,948 97,979 88,925 86,544 84,884 83,552 82,548 84,000 8 FHLBB 47,045 62,794 65,567 65,015 64,202 63,861 60,415 58,841 56,859 55,845 54,274 54,047 9 Other 17,541 25,988 34,204 35,866 38,746 34,118 28,510 27,703 28,025 27,707 28,274 29,953 10 Loans in process 8,767 6,385 8,084 8,484 8,967 9,934 10,453 11,039 12,245 13,447 14,504 15,965 11 Other 12,394 15,544 19,202 20,018 21,048 15,720 16,658 17,524 14,767 16,181 18,276 15,558 12 Net worth2 33,329 28,395 24,476 24,538 24,754 26,157 26,175 26,371 26,853 27,418 27,339 28,065 13 MEMO: Mortgage loan commitments outstanding3 16,102 15,225 17,256 18,407 19,682 18,054 19,453 22,051 24,885 27,912 30,060 30,378 Mutual savings banks4 14 Assets 171,564 175,728 173,487 172,908 172,287 174,197 174,726 176,378 178,814 178,826 180,071 Loans 15 Mortgage 99,865 99,997 94,382 94,261 94,017 94,091 93,944 93,607 93,822 93,311 93,587 16 Other 11,733 14,753 17,458 17,035 16,702 16,957 17,420 18,211 17,837 18,353 17,893 Securities 17 U.S. government5 8,949 9,810 9,404 9,219 9,456 9,743 10,248 11,081 12,187 12,364 13,110 18 State and local government 2,390 2,288 2,191 2,505 2,496 2,470 2,446 2,440 2,403 2,311 2,260 19 Corporate and other6 39,282 37,791 35,845 35,599 35,753 36,161 36,430 36,905 37,827 38,342 39,142 20 Cash 4,334 5,442 6,695 6,749 6,291 6,919 6,275 6,104 6,548 6,039 5,960 21 Other assets 5,011 5,649 7,514 7,540 7,572 7,855 7,963 8,031 8,189 8,107 8,118 n.a. 22 Liabilities 171,564 175,728 173,487 172,908 172,287 174,197 174,726 176,378 178,814 178,826 180,071 23 Deposits 154,805 155,110 153,089 152,210 151,304 155,196 157,113 159,162 161,489 161,262 162,287 24 Regular7 151,416 153,003 150,795 149,928 149,167 152,777 154,876 156,915 159,088 158,760 159,840 25 Ordinary savings 53,971 49,425 47,496 48,520 49,208 46,862 41,850 41,165 41,183 40,379 40,467 26 Time 97,445 103,578 103,299 101,408 99,959 96,369 90,184 87,377 86,276 84,593 83,506 27 Other 2,086 2,108 2,294 2,283 2,137 2,419 2,237 2,247 2,401 2,502 2,447 28 Other liabilities 6,695 10,632 11,166 11,556 11,893 8,336 7,722 7,542 7,395 7,631 3, 114 29 General reserve accounts 11,368 9,986 9,232 9,141 9,089 9,235 9,196 9,197 9,342 9,352 9,377 30 MEMO: Mortgage loan commitments outstanding® 1,476 1,293 1,217 1,281 1,400 1,285 1,253 1,295 1,639 1,860 1,860 Life insurance companies 31 Assets 479,210 525,803 563,321 571,902 578,200 584,311 589,490 595,959 602,770 609,298 Securities 32 Government 21,378 25,209 30,759 31,791 32,682 34,558 35,567 36,946 38,469 39,210 33 United States9 5,345 8,167 12,606 13,538 14,370 16,072 16,731 17,877 19,213 19,213 34 State and local 6,701 7,151 7,834 7,871 7,935 8,094 8,225 8,333 8,368 8,524 35 Foreign10 9,332 9,891 10,319 10,382 10,377 10,392 10,611 10,736 10,888 10,940 n a. n.a. 238,113 255,769 273,539 279,918 283,650 283,799 290,178 293,427 296,223 300,558 37 Bonds 190,747 208,098 223,783 226,879 229,101 228,220 233,380 235,376 236,420 238,689 38 Stocks 47,366 47,670 49,756 53,039 54,549 55,579 56,798 58,051 59,803 61,869 39 Mortgages 131,030 137,747 140,404 140,678 140,956 141,919 142,277 142,683 143,031 143,011 40 Real estate 15,063 18,278 20,268 20,293 20,480 21,019 20,922 21,014 21,175 21,352 41 Policy loans 41,411 48,706 52,525 52,751 52,916 53,114 53,239 53,383 53,560 53,715 42 Other assets 31,702 40,094 45,826 46,471 47,516 49,902 47,307 48,506 50,322 51,452 Credit unions11 43 Total assets/liabilities and capital 71,709 77,682 86,554 88,144 89,261 69,673 69,741 71,293 73,737 74,716 76,717 44 Federal 39,801 42,382 47,076 47,649 48,272 45,483 45,418 46,449 48,057 48,628 49,869 45 State 31,908 35,300 39,478 40,495 40,989 24,190 23,323 24,844 25,680 26,088 26,848 46 Loans outstanding 47,774 50,448 51,047 50,934 50,936 43,335 43,052 42,895 43,192 43,621 44,124 n .a. 47 Federal 25,627 27,458 27,862 27,789 27,824 29,941 27,724 27,592 27,733 27,995 28,357 48 State 22,147 22,990 23,185 23,145 23,139 15,393 15,328 15,303 15,459 15,626 15,789 49 Savings 64,399 68,871 76,874 78,529 79,799 63,071 63,321 64,684 67,266 68,510 70,186 50 Federal (shares) 36,348 37,574 41,961 42,852 43,413 41,341 41,441 42,404 43,890 44,741 45,782 51 State (shares and deposits) 28,051 31,297 34,913 35,677 36,386 21,730 21,880 22,280 23,376 23,769 24,405 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1982 1983 1983 11998800 11998811 11998822 HI H2 HI Apr. May June U.S. budget 1 Receipts' 517,112 599,272 617,766 322,478 286,338 306,331 66,234 33,755 66,517 2 Outlays''2 576,675 657,204 728,375 348,678 390,846 396,477 69,542 63,040 63,116 3 Surplus, or deficit (-) -59,563 -57,932 -110,609 -26,200 -104,508 -90,146 -3,308 -29,285 3,401 4 Trust funds 8,801 6,817 5,456 -17,690 -6,576 22,680 403 24,923 3,722 5 Federal funds -68,364 -64,749 -116,065 -43,889 -97,934 -112,822 -3,711 -54,208 -318 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -14,549 -20,769 -14,142 -7,942 -4,923 -5,418 -1,290 -1,433 -1,128 77 OOtthheerr 303 -236 -3,190 227 -2,267 -528 151 242 -889 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -73,808 -78,936 -127,940 -33,914 -111,699 -96,094 -4,447 -30,476 1,382 Source or financing 9 Borrowing from the public 70,515 79,329 134,993 41,728 119,609 102,538 2,681 18,497 25,719 10 Cash and monetary assets (decrease, or increase (-)) -355 -1,878 -11,911 -408 -9,057 -9,664 -8,156 19,189 -23,605 11 Other6 3,648 1,485 4,858 -7,405 1,146 3,222 9,922 -7,209 -3,496 MEMO: 12 Treasury operating balance (level, end of period) 20,990 18,670 29,164 10,999 19,773 100,243 24,053 5,233 27,997 13 Federal Reserve Banks 4,102 3,520 10,975 4,099 5,033 19,442 6,015 4,372 8,764 14 Tax and loan accounts 16,888 15,150 18,189 6,900 14,740 72,037 18,038 861 19,233 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold voluntary hospital insurance premiums, previously included in other insurance tranche drawing rights; loans to International Monetary Fund; and other cash and receipts, have been reclassified as offsetting receipts in the health function. monetary assets. 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was 6. Includes accrued interest payable to the public; allocations of special reclassified from an off-budget agency to an on-budget agency in the Department drawing rights; deposit funds; miscellaneous liability (including checks outstandof Labor. ing) and asset accounts; seigniorage; increment on gold; net gain/loss for U.S. 3. Half-year figures are calculated as a residual (total surplus/deficit less trust currency valuation adjustment; net gain/loss for IMF valuation adjustment; and fund surplus/deficit). profit on the sale of gold. 4. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving Fund; and Rural Telephone Bank; it also includes petroleum SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. acquisition and transportation and strategic petroleum reserve effective Novem- Government." Treasury Bulletin, and the Budget of the United States Governber 1981. ment, Fiscal Year 1984. NOTES TO TABLE 1.37 10. Issues of foreign governments and their subdivisions and bonds of the 1. Holdings of stock of the Federal Home Loan Banks are included in "other International Bank for Reconstruction and Development. assets." 11. AsofDecember 1982, National Credit Union Administration data no longer 2. Includes net undistributed income, which is accrued by most, but not all, includes either federally chartered or state-chartered corporate credit unions. associations. 3. Excludes figures for loans in process, which are shown as a liability. NOTE. Savings and loan associations: Estimates by the FHLBB for all 4. The NAMSB reports that, effective April 1979, balance sheet data are not associations in the United States. Data are based on monthly reports of federally strictly comparable with previous months. Beginning April 1979, data are reported insured associations and annual reports of other associations. Even when revised, on a net-of-valuation-reserves basis. Before that date, data were reported on a data for current and preceding year are subject to further revision. gross-of-valuation-reserves basis. Mutual savings banks: Estimates of National Association of Mutual Savings 5. Beginning April 1979, includes obligations of U.S. government agencies. Banks for all savings banks in the United States. Before that date, this item was included in "Corporate and other." Life insurance companies: Estimates of the American Council of Life Insurance 6. Includes securities of foreign governments and international organizations for all life insurance companies in the United States. Annual figures are annualand, before April 1979, nonguaranteed issues of U.S. government agencies. statement asset values, with bonds carried on an amortized basis and stocks at 7. Excludes checking, club, and school accounts. year-end market value. Adjustments for interest due and accrued and for 8. Commitments outstanding (including loans in process) of banks in New York differences between market and book values are not made on each item separately State as reported to the Savings Banks Association of the state of New York. but are included, in total, in "other assets." 9. Direct and guaranteed obligations. Excludes federal agency issues not Credit unions: Estimates by the National Credit Union Administration for a guaranteed, which are shown in the table under "Business" securities. group of federal and state-chartered credit unions that account for about 30 percent 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

A32 Domestic Nonfinancial Statistics • August 1983 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal Source or type year year year 1982 11998833 11998833 1980 1981 1982 HI H2 HI Apr. May June RECEIPTS 1 AU sources1 517,112 599,272 617,766 322,478 286,338 306,331 66,234 33,755 66,517 2 Individual income taxes, net 244,069 285,917 297,744 150,565 145,676 144,550 35,040 6,384 32,773 3 Withheld 223,763 256,332 267,513 133,575 131,567 135,531 21,636 22,205 23,641 4 Presidential Election Campaign Fund ... 39 4t 39 34 5 30 8 6 3 5 Nonwithheld 63,746 76,844 84,691 66,174 20,040 63,014 31,961 1,131 11,131 6 Refunds 43,479 47,299 54,498 49,217 5,938 54,024 18,564 16,958 2,003 Corporation income taxes 7 Gross receipts 72,380 73,733 65,991 37,836 25,661 33,522 8,445 1,903 11,680 8 Refunds 7,780 12,596 16,784 8,028 11,467 13,809 3,650 2,205 1,724 9 Social insurance taxes and contributions, net 157,803 182,720 201,498 108,079 94,278 110,521 21,481 22,330 17,903 10 Payroll employment taxes and contributions2 133,025 156,932 172,744 88,795 85,063 90,912 14,567 15,680 16,366 11 Self-employment taxes and contributions3 5,723 6,041 7,941 7,357 177 6,427 4,232 418 901 12 Unemployment insurance 15,336 15,763 16,600 9,809 6,857 11,146 2,324 5,875 285 13 Other net receipts1'4 3,719 3,984 4,212 2,119 2,181 2,196 358 357 351 14 Excise taxes 24,329 40,839 36,311 17,525 16,556 16,904 2,557 2,991 3,099 15 Customs deposits 7,174 8,083 8,854 4,310 4,299 4,010 762 670 857 16 Estate and gift taxes 6,389 6,787 7,991 4,208 3,445 2,883 458 493 530 17 Miscellaneous receipts5 12,748 13,790 16,161 7,984 7,891 7,751 1,141 1,190 1,400 OUTLAYS 18 All types' 576,675 657,204 728,424 348,683 390,847 396,477 69,542 63,040 63,U6 19 National defense 135,856 159,765 187,418 93,154 100,419 105,072 17,524 17,309 18,337 20 International affairs 10,733 11,130 9,982 5,183 4,406 4,705 937 438 817 21 General science, space, and technology ... 5,722 6,359 7,070 3,370 3,903 3,486 607 589 667 22 Energy 6,313 10,277 4,674 2,946 2,059 2,073 212 375 372 23 Natural resources and environment 13,812 13,525 12,934 5,636 6,940 5,892 1,036 905 1,033 24 Agriculture 4,762 5,572 14,875 7,087 13,260 10,154 2,717 558 483 25 Commerce and housing credit 7,788 3,946 3,865 1,408 2,244 2,164 434 136 545 26 Transportation 21,120 23,381 20,560 9,915 10,686 9,918 1,581 1,531 1,755 27 Community and regional development .... 10,068 9,394 7,165 3,055 4,186 3,124 427 469 757 28 Education, training, employment, social services 30,767 31,402 26,300 12,607 12,187 12,801 1,985 2,113 2,171 29 Health1 55,220 65,982 74,017 37,219 39,073 41,206 7,120 6,966 7,020 30 Income security 193,100 225,101 248,343 112,782 133,779 143,001 24,654 22,304 25,381 31 Veterans benefits and services 21,183 22,988 23,955 10,865 13,241 11,334 3,357 882 1,903 32 Administration of justice 4,570 4,696 4,671 2,334 2,373 2,522 432 378 379 33 General government 4,505 4,614 4,726 2,400 2,322 2,434 163 1,002 160 34 General-purpose fiscal assistance 8,584 6,856 6,393 3,325 3,152 3,124 1,162 287 277 35 Net interest6 52,458 68,726 84,697 41,883 44,948 50,383 6,343 8,215 12,939 36 Undistributed offsetting receipts7 -9,887 -16,509 -13,270 -6,490 -8,333 -16,912 -1,148 -1,414 -11,881 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous voluntary hospital insurance premiums, previously included in other insurance receipts. receipts, have been reclassified as offsetting receipts in the health function. 6. Net interest function includes interest received by trust funds. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. 7. Consists of rents and royalties on the outer continental shelf and U.S. 3. Old-age, disability, and hospital insurance. government contributions for employee retirement. 4. Federal employee retirement contributions and civil service retirement and 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 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1981 1982 1983 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 977.4 1,003.9 1,034.7 1,066.4 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 2 Public debt securities 971.2 997.9 1,028.7 1,061.3 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 3 Held by public 771.3 789.8 825.5 858.9 867.9 925.6 987.7 1,043.3 n.a. 4 Held by agencies 199.9 208.1 203.2 202.4 211.7 216.4 209.4 201.2 n.a. 5 Agency securities 6.2 6.1 6.0 5.1 5.0 5.0 4.8 4.8 4.7 6 Held by public 4.7 4.6 4.6 3.9 3.9 3.7 3.7 3.7 n.a. 7 Held by agencies 1.5 1.5 1.4 1.2 1.1 1.3 1.1 1.1 n.a. 8 Debt subject to statutory limit 972.2 998.8 1,029.7 1,062.2 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 9 Public debt securities 970.6 997.2 1,028.1 1,060.7 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 10 Other debt1 1.6 1.6 1.6 1.5 1.5 1.5 1.4 1.4 1.4 11 MEMO: Statutory debt limit 985.0 999.8 1,079.8 1,079.8 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 1. Includes guaranteed debt of government agencies, specified participation NOTE. Data from Treasury Bulletin (U.S. Treasury Department). certificates, 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 1983 Type and holder mm 11998800 11998811 11998822 Mar. Apr. May June July 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,244.5 1,247.9 1,291.4 1,319.6 1,326.9 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,243.0 1,242.1 1,289.9 1,318.1 1,320.1 3 Marketable 530.7 623.2 720.3 881.5 937.8 935.5 957.3 978.9 985.7 4 Bills 172.6 216.1 245.0 311.8 331.9 325.9 325.2 334.3 337.6 5 Notes 283.4 321.6 375.3 465.0 494.1 494.9 513.6 527.1 527.2 6 Bonds 74.7 85.4 99.9 104.6 111.4 114.6 118.5 117.5 120.9 7 Nonmarketable1 313.2 305.7 307.0 314.0 305.2 306.6 332.6 339.2 335.0 8 Convertible bonds2 2.2 9 State and local government series 24.6 23.8 23.0 25.7 27.1 29.6 29.6 33.1 33.2 10 Foreign issues3 28.8 24.0 19.0 14.7 12.4 12.0 11.1 11.4 11.2 11 Government 23.6 17.6 14.9 13.0 11.1 10.7 10.5 10.8 11.2 12 Public 5.3 6.4 4.1 1.7 1.3 1.3 0.6 0.6 0.0 13 Savings bonds and notes 79.9 72.5 68.1 68.0 68.5 68.8 69.2 69.4 69.7 14 Government account series4 177.5 185.1 196.7 205.4 197.0 197.6 222.4 225.0 220.6 15 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.5 5.9 1.5 1.5 6.2 By holder5 16 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 201.2 17 Federal Reserve Banks 117.5 121.3 131.0 139.3 136.7 18 Private investors 540.5 616.4 6*14.5 848.4 906.6 19 Commercial banks 96.4 116.0 109.4 131.4 153.2 20 Mutual savings banks 4.7 5.4 5.2 n.a. n.a. 21 Insurance companies 16.7 20.1 19.1 38.7 40.0 22 Other companies 22.9 25.7 37.8 n.a. n.a. n.a. n a. n a. n a. 23 State and local governments 69.9 78.8 85.6 113.4 n.a. Individuals 24 Savings bonds 79.9 72.5 68.0 68.3 68.3 25 Other securities 36.2 56.7 75.6 48.2 48.4 26 Foreign and international6 124.4 127.7 141.4 149.4 156.3 27 Other miscellaneous investors7 90.1 106.9 152.3 233.2 n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Data for Federal Reserve Banks and U.S. government agencies and trust tion Administration, depository bonds, retirement plan bonds, and individual funds are actual holdings; data for other groups are Treasury estimates. retirement bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, United States. may be exchanged (or converted) at the owner's option for l'/2 percent, 5-year 7. Includes savings and loan associations, nonprofit institutions, corporate marketable Treasury notes. Convertible bonds that have been so exchanged are pension trust funds, dealers and brokers, certain government deposit accounts, removed from this category and recorded in the notes category (line 5). and 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

A34 Domestic Nonfinancial Statistics • August 1983 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1983 1983, week ending Wednesday IItteemm 11998800 11998811 11998822 Apr/ Mayr June June 22r June 29 July 6 July 13 July 20 July 27 Immediate delivery1 1 U.S. government securities 18,331 24,728 32,271 38,468 41,584 41,718 42,959 45,430 36,201 38,456 41,422 35,501 By maturity 2 Bills 11,413 14,768 18,398 22,142 21,878 22,191 21,357 23,560 22,713 23,294 23,894 18,578 3 Other within 1 year 421 621 810 611 448 606 467 640 575 607 611 595 4 1-5 years 3,330 4,360 6,272 7,385 8,908 8,051 11,314 8,251 5,856 6,455 7,372 8,229 5 5-10 years 1,464 2,451 3,557 4,136 4,415 6,071 4,943 7,092 3,426 4,280 4,909 3,951 6 Over 10 years 1,704 2,528 3,234 4,194 5,813 4,799 4,878 5,887 3,631 3,820 4,637 4,147 By type of customer 7 U.S. government securities dealers 1,484 1,640 1,769 2,418 2,361 2,298 2,264 3,032 1,955 2,067 2,227 2,111 8 U.S. government securities brokers 7,610 11,750 15,659 18,535 19,460 21,744 23,089 23,425' 17,648 20,320 20,608 17,165 9 All others2 9,237 11,337 15,344 17,515 18,550 17,676 17,606 18,973 16,598 16,070 18,587 16,224 10 Federal agency securities 3,258 3,306 4,142 5,584 5,457 4,675 4,134 5,021 3,880 4,710 6,242 5,062 11 Certificates of deposit 2,472 4,477 5,001 4,541 3,879 4,090 4,270 3,342 5,032 3,982 5,016 4,630 12 Bankers acceptances 1,807 2,502 3,063 2,480 2,376 2,187 2,505 3,376 2,690 2,791 2,359 13 Commercial paper 6,128 7,595 8,603 8,145 8,329 9,285 7,626 9,291 8,866 8,044 7,157 Futures transactions3 14 Treasury bills 3,523 5,031 6,057 6,526 7,527 8,138 6,447 5,451 6,613 7,021 6,421 15 Treasury coupons n a. 1,330 1,490 1,779 2,313 2,583 3,175 2,835' 2,199 1,662 2,631 2,984 16 Federal agency securities 234 259 194 317 356 290 373 345 509 398 615 Forward transactions4 17 U.S. government securities 365 835 1,322 1,458 1,383 2,307 995 979 632 1,919 1,561 18 Federal agency securities 1,370 982 1,493 1,521 1,573 1,526 904 1,197 1,676 2,253 1,125 1. Before 1981, data for immediate transactions include forward transactions. from the date of the transaction for government securities (Treasury bills, notes, 2. Includes, among others, all other dealers and brokers in commodities and and bonds) 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 Transactions are market purchases and sales of U.S. government securities exchange in which parties commit to purchase or sell securities for delivery at a dealers reporting to the Federal Reserve Bank of New York. The figures exclude future date. allotments of, and exchanges for, new U.S. government securities, redemptions 4. Forward transactions are agreements arranged in the over-the-counter of called or matured securities, purchases or sales of securities under repurchase market in which securities are purchased (sold) for delivery after 5 business days agreement, reverse repurchase (resale), or similar contracts. 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1983 1983, week ending Wednesday IItteemm 11998800 11998811 11998822 Apr. May' June June 8 June 15 June 22 June 29 July 6 Net immediate1 1 U.S. government securities 4,306 9,033 9,328 9,014 5,878 3,847 4,273 4,344 3,278 3,543 857 2 Bills 4,103 6,485 4,837 7,775 4,270 3,679 4,420 5,527 2,767 1,897 500 3 Other within 1 year -1,062 -1,526 -199 -371 16 65 146 25 7 48 133 4 1-5 years 434 1,488 2,932 733 485 -237 -778 -1,517 1,194 177 -165 5 5-10 years 166 292 -341 -57 -183 550 513 316 -162 1,687 1,066 6 Over 10 years 665 2,294 2,001 934 1,290 -210 -28 -7 -527 -265 -676 7 Federal agency securities 797 2.277 3,712 5,278 5,651 5,631 5,559 6,132 5,424 5,531 5,583 8 Certificates of deposit 3,115 3,435 5,531 5,475' 4,836 4,488 4,534 4,228 4,565 4,435 4,804 9 Bankers acceptances 1 1,746 2,832 3,051 2,931 2,405 2,294 2,244 2,409 2,669 3,201 10 Commercial paper T 2,658 3,317 3,228 3,014 2,894 2,963 2,710 3,145 2,839 2,468 Futures positions 11 Treasury bills 1 -8,934 -2,508 -7,149' -5,771 -1,104 -569 -744 -1,441 -1,202 -1,989 12 Treasury coupons n.a. -2,733 -2,361 -1,966 -1,386 -1 -114' -208 -122 161 107 13 Federal agency securities 1 522 -224 112 51 197 178 -55 181 392 351 Forward positions 1 1 5 4 F U e . d S e . r g a o l v a e g r e n n m cy e n s t e s c e u c r u it r i i e t s ie ' s . t I - -6 4 0 5 3 1 -1 - , 7 1 8 9 8 0 -1 - , 8 5 8 7 7 0 - - 2 1 , , 0 7 3 1 4 2 -1 - , 6 7 3 9 6 0 - - 1 1 , , 2 8 4 9 5 1 -2 - , 5 2 6 8 1 1 -1 - , 1 7 8 8 9 1 -1 - , 3 4 9 0 8 0 -1 - , 1 1 2 2 4 3 Financing2 \ Reverse repurchase agreements3 16 Overnight and continuing 14,568 26,754 22,351 23,679 29,613 26,658 27,873 30,665 31,515 32,759 17 Term agreements 1 32,048 48,247 49,414 49,308 49,145 49,294 51,191 48,363 47,792 44,700 Repurchase agreements4 n.a. 18 Overnight and continuing 11 35,919 49,695 51,702 52,378 56,459 53,590 55,663 59,173 56,431 59,400 19 Term agreements 29,449 43,410 41,890 42,350 39,423 40,178 40,257 38,851 38,396 34,617 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A35 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1983 AAggeennccyy 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 188,665 221,946 237,085 237,394 235,607 234,412 234,852 234,289 235,041 2 Federal agencies 28,606 31,806 33,055 33,018 33,045 33,083 33,120 33,065 33,353 3 Defense Department1 610 484 354 346 336 335 318 308 298 4 Export-Import Bank2'3 11,250 13,339 14,218 14,267 14,255 14,304 14,304 14,303 14,563 5 Federal Housing Administration4 477 413 288 282 281 271 255 243 228 6 Government National Mortgage Association participation certificates5 2,817 2,715 2,165 2,165 2,165 2,165 2,165 2,165 2,165 7 Postal Service6 1,770 1,538 1,471 1,471 1,471 1,471 1,471 1,404 1,404 8 Tennessee Valley Authority 11,190 13,115 14,365 14,365 14,415 14,415 14,485 14,520 14,570 9 United States Railway Association6 492 202 194 122 122 122 122 122 125 10 Federally sponsored agencies7 160,059 190,140 204,030 204,376 202,562 201,329 201,732 201,224 201,688 11 Federal Home Loan Banks 37,268 54,131 55,967 54,489 53,071 51,899 50,297 49,756 48,871 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 3,956 4,026 4,475 5,160 5,777 6,500 13 Federal National Mortgage Association 55,182 58,749 70,052 72,247 72,221 71,366 72,058 70,769 71,303 14 Farm Credit Banks 62,923 71,359 71,896 72,280 71,987 72,047 72,227 72,548 72,652 15 Student Loan Marketing Association (8) 421 1,591 1,404 1,257 1,542 1,990 2,374 2,362 MEMO: 16 Federal Financing Bank debt 87,460 110,698 126,424 126,587 126,623 127,717 129,125 130,528 131,987 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,177 14,177 14,232 14,232 14,232 14,493 18 Postal Service6 1,520 1,288 1,221 1,221 1,221 1,221 1,221 1,154 1,154 19 Tennessee Valley Authority 9,465 11,390 12,640 12,640 12,690 12,675 12,760 12,795 12,845 20 United States Railway Association6 492 202 194 122 122 122 122 122 125 Other Lending10 21 Farmers Home Administration 39,431 48,821 53,261 53,056 52,431 52,686 53,541 54,586 54,946 22 Rural Electrification Administration 9,196 13,516 17,157 17,330 17,502 17,817r 17,970 18,076 18,378 23 Other 13,982 18,140 27,774 28,041 28,480 28,964' 29,279 29,563 30,046 1. Consists of mortgages assumed by the Defense Department between 1957 7. Includes outstanding non-contingent liabilities: Notes, bonds, and debenand 1963 under family housing and homeowners assistance programs. tures. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 8. Prior to late 1981, the Association obtained financing through the Federal 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Financing Bank. 4. Consists of debentures issued in payment of Federal Housing Administration 9. The FFB, which began operations in 1974, is authorized to purchase or sell insurance claims. Once issued, these securities may be sold privately on the obligations issued, sold, or guaranteed by other federal agencies. Since FFB securities market. incurs debt solely for the purpose of lending to other agencies, its debt is not 5. Certificates of participation issued prior to fiscal 1969 by the Government included in the main portion of the table in order to avoid double counting. National Mortgage Association acting as trustee for the Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. NOTES TO TABLE 1.43 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 a arranged to make delivery on short sales and those for which the securities commitment, that is, trade-date basis, including any such securities that have obtained have been used as collateral on borrowings, i.e., matched agreements. been sold under agreements to repurchase (RPs). The maturities of some 4. Includes both repurchase agreements undertaken to finance positions and repurchase agreements are sufficiently long, however, to suggest that the securi- "matched book" repurchase agreements. ties involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities to resell (reverse RPs). Before 1981, NOTE. Data for positions are averages of daily figures, in terms of par value, data for immediate positions include forward positions. based on the number of trading days in the period. Positions are shown net and are 2. Figures cover financing involving U.S. government and federal agency on a commitment basis. Data for financing are based on Wednesday figures, in securities, negotiable CDs, bankers acceptances, and commercial paper. terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • August 1983 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1982 1983 Type of issue or issuer, 11998800 11998811 11998822 or use Oct. Nov. Dec. Jan.r Feb/ Mar/ Apr/ May 1 All issues, new and refunding1 48,367 47,732 78,950 8,466 10,287 9,761 3,750 6,133 8,408 10,388 9,228 Type of issue 2 General obligation 14,100 12,394 21,088 2,331 3,392 1,623 862 1,274 2,247 3,341 3,591 3 U.S. government loans2 38 34 225 30 34 37 0 3 3 2 6 4 Revenue 34,267 35,338 57,862 6,135 6,895 8,138 2,888 4,859 6,161 7,047 5,637 5 U.S. government loans2 57 55 461 57 57 62 0 2 5 9 14 Type of issuer 6 State 5,304 5,288 8,406 1,010 1,091 220 237 275 724 1,745 830 7 Special district and statutory authority 26,972 27,499 45,000 5,160 5,489 6,171 2,187 4,214 5,241 5,417 4,381 8 Municipalities, counties, townships, school districts 16,090 14,945 25,544 2,296 3,243 3,370 1,326 1,644 2,443 3,226 4,017 9 Issues for new capital, total 46,736 46,530 74,612 7,275 9,496 9,531 3,251 5,042 7,218 8,464 6,627 Use of proceeds 10 Education 4,572 4,547 6,444 546 765 895 355 1,089 821 613 800 11 Transportation 2,621 3,447 6,256 636 1,291 1,342 49 540 815 559 400 12 Utilities and conservation 8,149 10,037 14,254 1,338 1,969 1,891 967 1,047 1,723 2,528 1,479 13 Social welfare 19,958 12,729 26,605 2,918 2,336 3,121 904 1,497 2,576 2,845 1,952 14 Industrial aid 3,974 7,651 8,256 621 877 1,308 316 174 365 353 596 15 Other purposes 7,462 8,119 12,797 1,212 2,258 974 660 695 918 1,566 1,400 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. 1.46 NEW SECURITY ISSUES of Corporations Millions of dollars 1982 1983 Type of issue or issuer, or use 1980 1982 Sept. Oct. Nov. Dec. Feb. Mar. Apr. 1 AU issues''2 73,694 69,991 83,788 8,247 9,989 8,802 9,830 7,598 8,481 11,608 10,323 2 Bonds 53,206 44,642 53,226 5,762 7,121 5,412 5,636 4,470 3,819 5,267 6,015 Type of offering 3 Public 41,587 37,653 43,428 5,308 6,426 4,927 4,264 4,470 3,819 5,267 6,015 4 Private placement 11,619 6,989 9,798 454 695 485 1,372 n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 15,409 12,325 13,307 1,730 2,044 2,138 1,204 849 635 962 1,449 6 Commercial and miscellaneous, 6,693 5,229 5,681 481 417 523 565 702 361 511 1,109 7 Transportation 3,329 2,052 1,474 64 285 88 120 31 250 175 8 Public utility 9,557 8,963 12,155 1,021 1,663 1,246 944 313 813 950 755 9 Communication 6,683 4,280 2,265 311 208 115 372 650 725 10 Real estate and financial 11,534 11,793 18,344 2,156 2,504 1,302 2,431 2,575 1,760 2,194 1,802 11 Stocks3 20,489 25,349 30,562 2,485 2,868 3,390 4,194 3,128 4,662 6,341 4,308 Type 12 Preferred 3,631 1,797 5,113 522 611 573 421 594 1,962 893 440 13 Common 16,858 23,552 25,449 1,963 2,257 2,817 3,773 2,534 2,700 5,448 3,868 Industry group 14 Manufacturing 4,839 5,074 5,649 345 666 481 921 876 1,048 1,584 1,280 15 Commercial and miscellaneous, 5,245 7,557 7,770 742 640 1,024 693 994 646 1,225 1,494 16 Transportation 549 779 709 84 80 225 22 355 283 91 113 17 Public utility 6,230 5,577 7,517 1,003 620 752 742 350 534 674 639 18 Communication 567 1,778 2,227 4 33 14 1,361 187 2 1,133 37 19 Real estate and financial 3,059 4,584 6,690 307 829 894 455 366 2,149 1,634 745 1. Figures, which represent gross proceeds of issues maturing in more than one 2. Data for 1983 include only public offerings. year, sold for cash in the United States, are principal amount or number of units 3. Beginning in August 1981, gross stock offerings include new equity volume multiplied by offering price. Excludes offerings of less than $100,000, secondary from swaps of debt for equity. offerings, undefined or exempted issues as defined in the Securities Act of 1933, employee stock plans, investment companies other than closed-end, intracorpo- SOURCE. Securities and Exchange Commission and the Board of Governors of rate transactions, and sales to foreigners. the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1982 1983 IItteemm 11998811 11998822 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June INVESTMENT COMPANIES' 1 Sales of own shares2 20,596 45,675 5,815 5,291 8,095 6,115 7,871 8,418 7,577 8,081 2 Redemptions of own shares3 15,866 30,078 3,493 4,835 4,233 3,510 5,066 6,482 4,486 5,402 3 Net sales 4,730 15,597 2,322 456 3,862 2,605 2,805 1,936 3,091 2,679 4 Assets4 55,207 76,741 74,864 76,841 80,384 84,981 90,075 98,669 101,423 106,449 5 Cash position5 5,277 5,999 5,838 6,040 6,943 7,404 7,904 8,496 8,771 9,111 6 Other 49,930 70,742 69,026 70,801 73,441 77,577 82,171 90,173 92,652 97,338 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt 2. Includes reinvestment of investment income dividends. Excludes reinvest- securities. ment 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 comprise substantially all open-end investment companies registered with the another in the same group. Securities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1981r 1982' 1983 AAccccoouunntt 11998800rr 11998811'''' 11998822rr Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql' 1 Corporate profits with inventory valuation and capital consumption adjustment 175.4 192.3 164.8 185.0 197.6 192.0 162.0 166.8 168.5 161.9 181.8 2 Profits before tax 234.6 227.0 174.2 219.0 227.7 217.2 173.2 178.8 177.3 167.5 169.7 3 Profits tax liability 84.8 82.8 59.2 80.4 83.7 75.6 60.3 61.4 60.8 54.0 61.5 4 Profits after tax 149.8 144.1 115.1 138.6 144.0 141.6 112.9 117.4 116.5 113.5 108.2 5 Dividends 58.6 64.7 68.7 63.7 66.4 67.3 67.7 67.8 68.8 70.4 71.4 6 Undistributed profits 91.2 79.5 46.6 74.9 77.6 74.3 45.2 49.6 47.7 43.1 36.7 7 Inventory valuation -42.9 -23.6 -8.4 -22.6 -19.4 -15.7 -5.5 -8.5 -9.0 -10.3 -1.7 8 Capital consumption adjustment -16.3 -11.0 -1.1 -11.4 -10.7 -9.5 -5.6 -3.5 0.1 4.7 13.9 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • August 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1981 1982 AAccccoouunntt 11997766 11997777 11997788 11997799 11998800 Q4 Ql Q2 Q3 Q4 1 Current assets 827.4 912.7 1,043.7 1,218.2 1,333.5 1,426.8 1,424.6 1,422.6 1,446.9 1,430.9 2 Cash 88.2 97.2 105.5 118.0 127.1 131.9 122.0 124.4 126.9 143.7 3 U.S. government securities 23.5 18.2 17.3 17.0 19.3 18.0 16.9 17.1 19.6 23.1 4 Notes and accounts receivable 292.9 330.3 388.0 461.1 510.6 536.2 539.2 536.8 539.7 517.0 5 Inventories 342.5 376.9 431.6 505.5 543.7 587.1 592.7 588.4 598.0 577.5 6 Other 80.3 90.1 101.3 116.7 132.7 153.6 153.7 155.8 162.7 169.6 7 Current liabilities 495.1 557.1 669.3 807.8 890.9 979.5 988.0 987.5 1,005.2 976.5 8 Notes and accounts payable 282.1 317.6 382.9 461.2 515.2 562.4 555.5 555.1 559.7 548.7 9 Other 213.0 239.6 286.4 346.6 375.7 417.1 432.5 432.4 445.5 427.8 10 Net working capital 332.4 355.5 374.4 410.5 442.6 447.3 436.6 435.1 441.7 454.4 11 MEMO: Current ratio1 1.671 1.638 1.559 1.508 1.497 1.457 1.442 1.441 1.439 1.465 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, Board of Governors of the Federal Reserve System, Washington, D.C. Corporations" in the July 1978 BULLETIN, pp. 533-37. 20551. SOURCE. Federal Trade Commission and Bureau of the Census. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1982 1983 IInndduussttrryy11 11998811 11998822 1199883311 Q2 Q3 Q4 Ql Q21 Q31 Q41 1 Total nonfarm business 321.49 316.43 305.53 323.22 315.79 302.77 293.03 302.23 306.83 320.02 Manufacturing 2 Durable goods industries 61.84 56.44 51.95 59.03 57.14 50.50 50.74 49.64 53.34 54.09 3 Nondurable goods industries 64.95 63.23 60.84 64.74 62.32 59.59 59.12 61.34 60.75 62.15 Nonmanufacturing 4 Mining 16.86 15.45 13.24 16.56 14.63 13.31 12.03 13.69 13.54 13.70 Transportation 5 Railroad 4.24 4.38 3.96 4.73 3.94 4.31 3.35 4.00 4.09 4.41 6 Air 3.81 3.93 3.42 3.54 4.11 4.85 4.09 3.25 2.68 3.66 7 Other 4.00 3.64 3.42 4.06 3.24 3.25 3.60 3.40 3.17 3.51 Public utilities 8 Electric 29.74 33.40 33.84 32.26 34.98 35.12 33.97 34.16 32.97 34.24 9 Gas and other 8.65 8.55 7.76 9.14 8.40 7.77 7.64 8.03 7.48 7.87 10 Trade and services 86.33 86.95 87.13 88.85 87.31 84.00 82.38 85.33 87.41 93.37 11 Communication and other2 41.06 40.46 39.97 40.33 39.73 40.06 36.11 39.40 41.39 43.00 1. Anticipated by business. SOURCE. Survey of Current Business (Department 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 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Ql Q2 Q3 Q4 Ql ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 85.5 85.1 88.0 88.3 89.5 89.9 2 Business 55.2 63.3 70.3 72.3 80.6 80.9 82.6 82.2 81.0 82.2 3 Total 99.2 116.0 136.0 145.9 166.1 166.0 170.6 170.5 170.4 172.1 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 28.9 29.1 30.2 30.4 30.5 29.7 5 Accounts receivable, net 86.5 100.4 116.0 122.6 137.2 136.9 140.4 140.1 139.8 142.4 6 Cash and bank deposits 2.6 3.5 1 7 Securities .9 1.3 \ 24.91 27.5 34.2 35.0 37.3 39.1 39.7 42.8 8 AH other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 171.4 171.9 177.8 179.2 179.5 185.2 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 15.4 15.4 14.5 16.8 18.6 16.6 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 46.2 50.3 46.7 45.8 45.2 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 9.6 9.0 9.3 9.9 8.7 9.8 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 54.8 59.0 60.3 60.9 63.5 64.7 14 Other 11.5 12.6 14.2 14.3 17.8 19.0 18.9 20.5 18.7 22.8 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.8 23.3 24.5 24.5 24.2 26.0 16 Total liabilities and capital 104.3 122.4 140.9 150.1 171.4 171.9 177.8 179.2 179.5 185.2 1. Beginning Ql 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.52 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments receivable AAAccccccooouuunnntttsss rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg 1983 1983 1983 MMMaaayyy 333111,,, 111999888333''' Mar. Apr. May Mar. Apr. May Mar. Apr. May 1 Total 83,445 -80 887 428 23,924 22,927 25,322 24,004 22,040 24,894 2 Retail automotive (commercial vehicles) 15,372 645 830 580 1,604 1,810 1,615 959 980 1,035 3 Wholesale automotive 12,796 -590 226 239 6,058 6,494 6,971 6,648 6,268 6,732 4 Retail paper on business, industrial, and farm equipment 27,619 283 -116 -167 1,252 1,180 1,344 969 1,296 1,511 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,981 102 73 -137 13,327 11,897 13,457 13,225 11,824 13,594 6 All other business credit 18,677 -520 -126 -87 1,683 1,546 1,935 2,203 1,672 2,022 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • August 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 83.4 90.4 94.6 91.8 88.9 88.4 80.1 89.6 92.1 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 67.6 65.4 66.6 60.5 66.5 67.8 3 Loan/price ratio (percent) 73.2 74.8 76.6 75.2 75.2 77.9 76.8 74.2 77.5 4 Maturity (years) 28.2 27.7 27.6 26.9 26.5 27.2 24.2 26.9 26.8 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 2.98 2.46 2.78 2.21 2.09 2.44 6 Contract rate (percent per annum) 12.25 14.16 14.47 13.09 13.00 12.62 12.97 12.02 12.21 Yield (percent per annum) 7 FHLBB series5 12.65 14.74 15.12 13.69 13.49 13.16 13.41 12.42 12.67 8 HUD series4 13.95 16.52 15.79 13.62 13.44 13.18 13.17 13.02 13.09 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.44 16.31 15.31 12.80 12.87 12.65 12.68 12.50 12.41 10 GNMA securities6 12.55 15.29 14.68 12.60 12.06 11.94 11.87 11.76 11.72 FNMA auctions7 11 Government-underwritten loans 14.11 16.70 n.a. n.a. n.a. n.a. 12 Conventional loans 14.43 16.64 n.a. n.a. n.a. n.a. Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 55,104 58,675 66,031 71,814 73,106 73,555 73,666 73,554 74,116 14 FHA/V A-insured 37,365 39,341 39,718 39,057 38,924 38,768 38,409 37,901 37,669 15 Conventional 17,725 19,334 26,312 32,757 34,182 34,788 35,257 35,653 36,446 Mortgage transactions (during period) 16 Purchases 8,099 6,112 15,116 2,495 2,045 1,594 1,433 1,004 1,579 17 Sales 0 2 2 1 0 1 777 586 204 Mortgage commitments8 18 Contracted (during period) 8,083 9,331 22,105 3,055 2,006 785 1,184 1,023 1,534 19 Outstanding (end of period) 3,278 3,717 7,606 7,606 7,487 6,475 6,187 5,811 5,726 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,605.4 2,487.2 307.4 4.6 2.0 0 n.a. n.a. n.a. 21 Accepted 4,002.0 1,478.0 104.3 0 0 0 n.a. n.a. n.a. Conventional loans 22 Offered 3,639.2 2,524.7 445.3 23.2 7.8 1.8 n.a. n.a. n.a. 23 Accepted 1,748.5 1,392.3 237.6 15.3 0 0 n.a. n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 4,362 5,245 5,153 4,733 4,560 4,450 4,795 4,997 6,026 25 FHA/VA 2,116 2,236 1,921 1,009 1,004 1,000 995 990 984 26 Conventional 2,246 3,010 3,224 3,724 3,556 3,450 3,800 4,008 5,042 Mortgage transactions (during period) 27 Purchases 3,723 3,789 23,671 3,916 1,479 1,688 2,849 1,807 2,439 28 Sales 2,527 3,531 24,164 3,798 1,641 1,756 2,469 1,525 1,408 Mortgage commitments10 29 Contracted (during period) 3,859 6,974 28,187 1,068 2,059 868 1,438 3,079 2,334 30 Outstanding (end of period) 447 3,518 7,549 7,549 8,098 7,238 5,845 7,253 6,889 1. Weighted averages based on sample surveys of mortgages originated by prevailing ceiling rate. Monthly figures are unweighted averages of Monday major institutional lender groups. Compiled by the Federal Home Loan Bank quotations for the month. Board in cooperation with the Federal Deposit Insurance Corporation. 7. Average gross yields (before deduction of 38 basis points for mortgage 2. Includes all fees, commissions, discounts, and "points" paid (by the servicing) on accepted bids in Federal National Mortgage Association's auctions borrower or the seller) to obtain a loan. of 4-month commitments to purchase home mortgages, assuming prepayment in 3. Average effective interest rates on loans closed, assuming prepayment at the 12 years for 30-year mortgages. No adjustments are made for FNMA commitment end of 10 years. fees or stock related requirements. Monthly figures are unweighted averages for 4. Average contract rates on new commitments for conventional first mort- auctions conducted within the month. FNMA's commitment auctions were gages, rounded to the nearest 5 basis points; from Department of Housing and discontinued in March 1983. Urban Development. 8. Includes some multifamily and nonprofit hospital loan commitments in 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing addition to 1- to 4-family loan commitments accepted in FNMA's free market Administration-insured first mortgages for immediate delivery in the private auction system, and through the FNMA-GNMA tandem plans. secondary 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. FHLMC's 6. Average net yields to investors on Government National Mortgage Associa- mortgage commitments and mortgage transactions include activity under morttion guaranteed, mortgage-backed, fully modified pass-through securities, assum- gage/securities swap programs, while the corresponding data for FNMA exclude ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the swap activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1982 1983 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998800 11998811 11998822 Q2 Q3 Q4 Q1 Q2 1 1,471,786 1,583,264 1,654,667' 1,624,279 1,632,161 1,654,667' 1,682,634 1,723,628 ? 986,979 1,065,294 1,112,343' 1,089,522 1,097,507 1,112,343' 1,134,538' 1,163,274 3 137,134 136,354 136,725' 138,332 136,508 136,725' 137,938' 140,428 4 255,655 279,889 298,708' 290,951 291,740 298,708' 303,130' 310,598 5 92,018 101,727 106,891' 105,474 106,406 106,891' 107,028' 109,328 6 Major financial institutions 997,168 1,040,827 1,023,339' 1,042,904 1,027,027 1,023,339' 1,030,068' 1,048,339 7 263,030 284,536 301,742 294,022 298,342 301,742 305,672 312,663 8 160,326 170,013 177,122 172,596 175,126 177,122 179,430 183,533 9 12,924 15,132 15,841 15,431 15,666 15,841 16,147 16,634 10 81,081 91,026 100,269 97,522 99,050 100,269 101,575 103,898 11 Farm 8,699 8,365 8,510 8,473 8,500 8,510 8,520 8,598 1? Mutual savings banks 99,865 99,997 97,444' 96,346 94,382 97,444' 105,379' 119,830 13 67,489 68,187 66,533' 65,381 63,849 66,533' 72,912' 84,483 14 16,058 15,960 15,247' 15,338 15,026 15,247' 15,862' 17,011 IS 16,278 15,810 15,635' 15,598 15,479 15,635' 16,577' 18,308 16 Farm 40 40 29' 29 28 29' 28 28 17 Savings and loan associations 503,192 518,547 482,234' 512,997 493,899 482,234' 475,688' 471,638 18 1- to 4-family 419,763 433,142 396,361' 425,890 410,035 396,361' 389,967' 384,630 19 38,142 37,699 36,023 38,321 36,894 36,023 35,534' 35,231 20 Commercial 45,287 47,706 49,850' 48,786 46,970 49,850' 50,187' 51,777 ?! Life insurance companies 131,081 137,747 141,919 139,539 140,404 141,919 143,329' 144,208 ?? 17,943 17,201 16,743 16,451 16,865 16,743 16,855' 16,965 ?3 Multifamily 19,514 19,283 18,847 18,982 18,967 18,847 19,076' 19,100 ?4 80,666 88,163 93,501 91,113 91,640 93,501 94,727' 95,443 25 Farm 12,958 13,100 12,828 12,993 12,932 12,828 12,671' 12,700 76 Federal and related agencies 114,300 126,094 138,185 131,456 134,409 138,185 140,028' 143,235 77 Government National Mortgage Association 4,642 4,765 4,227 4,669 4,110 4,227 3,753' 3,660 ?8 1- to 4-family 704 693 676 688 682 676 665 651 29 Multifamily 3,938 4,072 3,551 3,981 3,428 3,551 3,088' 3,009 30 Farmers Home Administration 3,492 2,235 1,786 1,335 947 1,786 2,077 2,252 31 1- to 4-family 916 914 783 491 302 783 707 732 3? Multifamily 610 473 218 179 46 218 380 405 33 Commercial 411 506 377 256 164 377 337 362 34 Farm 1,555 342 408 409 435 408 653 753 35 Federal Housing and Veterans Administration 5,640 5,999 5,228 5,908 5,362 5,228 5,138' 55,,221199 36 1- to 4-family 2,051 2,289 1,980 2,218 2,130 1,980 1,867' 1,919 37 Multifamily 3,589 3,710 3,248 3,690 3,232 3,248 3,271' 3,300 38 Federal National Mortgage Association 57,327 61,412 71,814 65,008 68,841 71,814 73,666 74,669 39 1- to 4-family 51,775 55,986 66,500 59,631 63,495 66,500 68,370 69,396 40 Multifamily 5,552 5,426 5,314 5,377 5,346 5,314 5,296 5,273 41 38,131 46,446 50,350 49,270 49,983 50,350 50,544 51,310 4? 2,099 2,788 3,068 2,954 3,029 3,068 3,059 3,100 43 Farm 36,032 43,658 47,282 46,316 46,954 47,282 47,485 48,210 44 Federal Home Loan Mortgage Corporation 5,068 5,237 4,780 5,266 5,166 4,780 4,850' 6,125 45 1- to 4-family 3,873 5,181 4,733 5,209 5,116 4,733 4,795' 6,025 46 Multifamily 1,195 56 47 57 50 47 55 100 47 Mortgage pools or trusts2 142,258 163,000 216,654 183,657 198,376 216,654 234,596 250,973 48 Government National Mortgage Association 93,874 105,790 118,940 111,459 114,776 118,940 127,939 137,961 49 91,602 103,007 115,831 108,487 111,728 115,831 124,482 134,313 50 2,272 2,783 3,109 2,972 3,048 3,109 3,457 3,648 51 Federal Home Loan Mortgage Corporation 16,854 19,853 42.964 28,703 35,132 42,964 48,008 50,587 57 1- to 4-family 13,471 19,501 42,560 28,329 34,739 42,560 47,575 50,112 53 Multifamily 3,383 352 404 374 393 404 433 475 54 Federal National Mortgage Association3 n.a. 717 14,450 4,556 8,133 14,450 18,157 20,933 55 1- to 4-family n.a. 717 14,450 4,556 8,133 14,450 18,157 20,933 56 Farmers Home Administration 31,530 36,640 40,300 38,939 40,335 40,300 40,492 41,492 57 1- to 4-family 16,683 18,378 20,005 19,357 20,079 20,005 20,263 20,463 58 2,612 3,426 4,344 4,044 4,344 4,344 4,344 4,444 59 5,271 6,161 7,011 6,762 7,056 7,011 7,115 7,215 60 Farm 6,964 8,675 8,940 8,776 8,856 8,940 8,770 9,370 61 Individual and others4 218,060 253,343 276,489' 266,262 272,349 276,489' 277,942' 281,081 67. 1- to 4-family5 138,284 167,297 184,998' 177,284 182,199 184,998' 185,434' 186,019 63 Multifamily 27,345 27,982 30,532 29,586 30,068 30,532 30,995' 31,798 64 Commercial 26,661 30,517 32,065 30,914 31,381 32,065 32,612' 33,595 65 Farm 25,770 27,547 28,894 28,478 28,701 28,894 28,901' 29,669 1. Includes loans held by nondeposit trust companies but not bank trust NOTE. Based on data from various institutional and governmental sources, with departments. 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 of guaranteed by the agency indicated. nonfarm mortgage debt by type of property, if not reported directly, and 3. Outstanding balances on FNMA's issues of securities backed by pools of interpolations and extrapolations when required, are estimated mainly by the conventional mortgages held in trust. The program was implemented by FNMA in Federal Reserve. Multifamily debt refers to loans on structures of five or more October 1981. units. 4. Other holders include mortgage companies, real estate investment trusts, state and local credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and U.S. agencies for which amounts are small or for which separate data are not readily available. 5. Includes a new estimate of residential mortgage credit provided by individuals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • August 1983 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1982 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Nov. Dec. Jan. Feb. Mar. Apr. May June Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 338,372 344,798 343,151 340,343 342,568 344,748 347,189 By major holder 2 Commercial banks 147,013 147,622 152,069 149,651 152,069 150,906 150,257 151,319 152,408 153,471 3 Finance companies .... 76,756 89,818 94,322 93,462 94,322 95,080 93,859 94,817 94,675 95,364 4 Credit unions 44,041 45,954 47,253 46,832 47,253 46,946 46,757 47,081 47,505 47,838 5 Retailers2 28,448 29,551 30,202 27,639 30,202 28,859 27,734 27,472 27,455 27,541 6 Savings and loans 9,911 11,598 13,891 13,672 13,891 14,209 ' 14,860 15,083 15,551 15,842 7 Gasoline companies ... 4,468 4,403 4,063 4,141 4,063 4,102 3,780 3,669 3,980 3,943 8 Mutual savings banks.. 2,835 2,751 2,998 2,975 2,998 3,049 3,096 3,127 3,174 3,190 By major type of credit 9 Automobile 116,838 125,331 130,227 129,299 130,227 129,482 129,055 130,959 131,976 133,640 1 1 1 0 1 2 Co D I m n i d m re ir e c e r t c c t l i o a p a l a n b p s e a r n ks... 6 3 2 5 6 1 , , , 2 3 5 3 0 3 3 3 6 2 5 3 8 3 4 , , , 0 7 3 8 0 7 1 6 5 2 3 5 3 5 8 , , , 6 1 8 7 7 5 3 8 1 2 3 58 4 3 , , , 7 8 8 0 8 1 1 4 7 2 3 5 3 5 8 , , , 6 1 8 7 5 7 8 1 3 57,74 ( ( 0 3 3 ) ) 57,97 ( ( 1 3 3 ) ) 58,56 ( ( 7 3 3 ) ) 59,29 ( ( 1 3 3 ) ) 60,38 ( ( 4 3 3 ) ) 13 Credit unions 21,060 21,975 22,596 22,395 22,596 22,458 22,360 22,518 22,721 22,880 14 Finance companies .. 34,242 45,275 48,780 48,203 48,780 49,284 48,724 49,874 49,964 50,376 15 Revolving 58,352 62,819 67,184 62,362 67,184 65,562 63,372 63,091 63,521 63,459 16 Commercial banks... 29,765 32,880 36,688 34,233 36,688 36,282 35,481 35,533 35,651 35,536 17 Retailers 24,119 25,536 26,433 23,988 26,433 25,178 24,111 23,889 23,890 23,980 18 Gasoline companies . 4,468 4,403 4,063 4,141 4,063 4,102 3,780 3,669 3,980 3,943 19 Mobile home 17,322 18,373 18,988 19,049 18,988 19,291 19,374 19,379 19,400 19,448 20 Commercial banks... 10,371 10,187 9,684 9,806 9,684 9,828 9,806 9,739 9,624 9,581 21 Finance companies .. 3,745 4,494 4,965 4,970 4,965 4,981 4,960 4,967 4,970 4,976 22 Savings and loans ... 2,737 3,203 3,836 3,775 3,836 3,984 4,112 4,174 4,303 4,384 23 Credit unions 469 489 503 498 503 498 496 499 503 507 24 Other 120,960 125,174 128,399 127,662 128,399 128,816 128,542 129,139 129,851 130,642 25 Commercial banks... 45,341 46,474 46,846 46,911 46,846 47,056 46,999 47,480 47,842 47,970 26 Finance companies .. 38,769 40,049 40,577 40,289 40,577 40,815 40,175 39,976 39,741 40,012 27 Credit unions 22,512 23,490 24,154 23,939 24,154 23,990 23,901 24,064 24,281 24,451 28 Retailers 4,329 4,015 3,769 3,651 3,769 3,681 3,623 3,583 3,565 3,561 29 Savings and loans ... 7,174 8,395 10,055 9,897 10,055 10,225 10,748 10,909 11,248 11,458 30 Mutual savings banks 2,835 2,751 2,998 2,975 2,998 3,049 3,096 3,127 3,174 3,190 Net change (during period)4 31 Total 1,448 18,217 13,096 2,015 2,418 2,725 735 2,582 2,271 2,696 4,406 By major holder 32 Commercial banks -7,163 607 4,442 457 1,111 410 788 1,354 1,186 1,540 2,422 33 Finance companies .... 8,438 13,062 4,504 1,051 1,024 1,881 -658 487 -520 362 470 34 Credit unions -2,475 1,913 1,298 412 197 20 43 143 708 288 573 35 Retailers2 329 1,103 651 -51 -91 -14 36 422 147 169 368 36 Savings and loans 1,485 1,682 2,290 181 201 412 677 187 394 374 456 37 Gasoline companies ... 739 -65 -340 -35 -51 -78 -200 -35 299 -51 77 38 Mutual savings banks .. 95 -85 251 0 27 94 49 24 57 14 40 By major type of credit 39 Automobile 477 8,495 4,898 1,534 1,491 625 -233 1,221 689 1,313 1,973 40 Commercial banks... -5,830 -3,455 770 336 527 -581 321 240 612 1,066 1.284 41 Indirect paper -3,104 -858 803 134 429 (3) (3) (3) (3) (3) (3) 42 Direct loans -2,726 -2,597 -33 202 98 (3) (3) ((33)) (3) (3) (3) 43 Credit unions -1,184 914 622 211 89 20 15 6688 341 137 275 44 Finance companies .. 7,491 11,033 3,505 987 875 1,186 -569 913 -264 110 414 45 Revolving 1,415 4,467 4,365 39 501 68 -135 1,177 917 514 1,210 46 Commercial banks... -97 3,115 3,808 74 650 130 61 786 468 373 806 47 Retailers 773 1,417 897 0 -98 16 4 426 150 192 327 48 Gasoline companies . 739 -65 -340 -35 -51 -78 -200 -35 299 -51 77 49 Mobile home 483 1,049 609 23 -37 420 204 -61 22 17 151 50 Commercial banks... -276 -186 -508 -47 -74 193 26 -95 -99 -86 28 51 Finance companies .. 355 749 471 5 -15 53 59 -23 8 1 -6 52 Savings and loans ... 430 466 633 61 49 175 120 54 107 98 123 53 Credit unions -25 20 14 4 3 -1 -1 3 6 4 6 54 Other -927 4,206 3,224 419 463 1,612 899 245 643 852 1,072 55 Commercial banks... -960 1,133 372 94 8 668 380 423 205 187 304 56 Finance companies .. 592 1,280 528 59 164 642 -148 -403 -264 251 62 57 Credit unions -1,266 975 662 197 105 1 29 72 361 147 292 58 Retailers -444 -314 -246 -51 7 -30 32 -4 -3 -23 41 59 Savings and loans ... 1,056 1,217 1,657 120 152 237 557 133 287 276 333 60 Mutual savings banks 95 -85 251 0 27 94 49 24 57 14 40 1. The Board's series cover most short- and intermediate-term credit extended liquidations, seasonally adjusted. Beginning 1983, net change equals outstandings, to individuals through regular business channels, usually to finance the purchase seasonally adjusted less outstandings of the previous period, 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, $74.8 billion at the end of 2. Includes auto dealers and excludes 30-day charge credit held by travel and 1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982. entertainment companies. 3. Not reported after December 1982. • These data have been revised from December 1980 through February 1983. 4. For 1982 and earlier, net change equals extensions, seasonally adjusted less Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June INTEREST RATES Commercial banks1 11 14.30 16.54 16.83 14.81 13.90 15.47 18.09 18.65 17.47 16.57 3 14.99 17.45 18.05 16.73 15.84 4 1177..3311 1177..7788 1188..5511 1188..8822 1188..7799 Auto finance companies 5 New car 14.82 16.17 16.15 12.57 12.25 12.05 12.07 11.90 11.94 11.57 6 Used car 19.10 20.00 20.75 20.63 20.20 19.91 19.38 18.91 18.76 18.58 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 46.4 46.0 45.9 45.9 45.8 45.4 45.6 8 Used car 34.8 35.8 34.0 36.9 38.2 37.7 37.7 37.7 37.9 38.0 Loan-to-value ratio 9 New car 87.6 86.1 85.3 87.0 86.0 86.0 84.0 86.0 86.0 87 10 Used car 94.2 91.8 90.3 90.0 90.0 90.0 91.0 91.0 92.0 92 Amount financed (dollars) 11 New car 6,322 7,339 8,178 8,468 8,683 8,755 8,829 8,662 8,572 8,512 12 Used car 3,810 4,343 4,746 4,846 4,742 4,731 4,802 4,869 4,984 5,039 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile home loans was 84 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • August 1983 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1980 1981 1982 ciio c<i egury, sector HI H2 HI H2 HI H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors 317.7 368.6 388.8 355.0 391.1 412.7 325.1 384.9 402.7 379.6 365.9 459.6 By sector and instrument 2 U.S. government 56.8 53.7 37.4 79.2 87.4 161.3 63.3 95.1 81.9 92.9 100.2 222.4 3 Treasury securities 57.6 55.1 38.8 79.8 87.8 162.1 63.9 95.7 82.4 93.2 101.5 222.7 4 Agency issues and mortgages -.9 -1.4 -1.4 -.6 -.5 -.9 -.6 -.6 -.5 -.4 -1.4 -.4 5 Private domestic nonfinancial sectors 260.9 314.9 351.5 275.8 303.7 251.5 261.9 289.7 320.8 286.7 265.7 237.2 6 Debt capital instruments 169.8 198.7 216.0 204.1 175.0 168.4 203.8 204.4 196.5 153.5 157.1 179.7 7 Tax-exempt obligations 21.9 28.4 29.8 35.9 32.9 59.5 30.7 41.0 35.1 30.6 52.7 66.3 8 Corporate bonds 21.0 20.1 22.5 33.2 23.9 25.5 37.3 29.0 24.7 23.0 13.4 37.7 y Mortgages 126.9 150.2 163.7 135.1 118.3 83.3 135.8 134.3 136.7 99.9 91.1 75.6 10 Home mortgages 94.3 112.1 120.1 96.7 78.6 58.8 96.5 96.9 95.2 62.0 58.6 59.0 li Multifamily residential 7.1 9.2 7.8 8.8 4.6 1.3 8.1 9.5 5.1 4.1 4.2 -1.6 12 Commercial 18.4 21.7 23.9 20.2 25.3 18.0 20.3 20.1 27.4 23.2 22.8 13.3 13 Farm 7.1 7.2 11.8 9.3 9.8 5.2 10.9 7.8 9.0 10.5 5.4 4.9 14 Other debt instruments 91.1 116.2 135.5 71.7 128.8 83.0 58.1 85.4 124.3 133.2 108.6 57.5 li Consumer credit 40.2 48.8 45.4 4.9 25.3 14.4 -3.3 13.0 29.4 21.2 14.4 14.4 16 Bank loans n.e.c 26.7 37.1 49.2 35.4 51.1 57.4 18.0 52.7 47.7 54.6 77.4 37.5 17 Open market paper 2.9 5.2 11.1 6.6 19.2 -2.8 20.3 -7.1 10.7 27.6 4.4 -9.9 18 Other 21.3 25.1 29.7 24.9 33.1 14.0 23.0 26.7 36.5 29.8 12.4 15.6 19 By borrowing sector 260.9 314.9 351.5 275.8 303.7 251.5 261.9 289.7 320.8 286.7 265.7 237.2 20 State and local governments 15.4 19.1 20.2 27.3 22.3 45.8 21.8 32.8 25.1 19.5 41.1 50.4 21 Households 137.3 169.3 176.5 117.5 120.4 88.5 115.2 119.8 141.0 99.9 88.1 89.0 22 Farm 12.3 14.6 21.4 14.4 16.4 9.0 15.7 13.0 19.9 12.8 8.4 9.6 23 Nonfarm noncorporate 28.3 32.4 34.4 33.8 40.5 24.7 27.5 40.2 41.8 39.3 32.4 16.9 24 Corporate 67.6 79.4 99.0 82.8 104.1 83.5 81.7 83.9 93.0 115.2 95.7 71.2 25 Foreign net borrowing in United States 13.5 33.8 20.2 27.2 27.3 15.3 29.0 25.3 34.0 20.6 17.5 13.2 26 Bonds 5.1 4.2 3.9 .8 5.5 6.4 2.0 -.4 3.3 7.6 2.2 10.7 27 Bank loans n.e.c 3.1 19.1 2.3 11.5 3.7 -6.2 5.9 17.2 5.0 2.3 -.4 -12.1 28 Open market paper 2.4 6.6 11.2 10.1 13.9 10.7 15.7 4.5 20.6 7.1 12.5 9.0 29 U.S. government loans 3.0 3.9 2.9 4.7 4.3 4.4 5.4 4.0 5.0 3.6 3.2 5.7 30 Total domestic plus foreign 331.2 402.3 409.1 382.2 418.4 428.0 354.2 410.2 436.7 400.2 383.3 472.8 Financial sectors 31 Total net borrowing by financial sectors 48.8 75.0 80.7 61.3 80.7 68.8 57.6 65.0 85.8 75.5 93.5 44.2 By instrument 32 U.S. government related 21.9 36.7 47.3 43.6 45.1 62.6 47.3 39.8 42.5 47.8 59.3 65.9 33 Sponsored credit agency securities 7.0 23.1 24.3 24.4 30.1 13.1 27.1 21.7 26.9 33.3 21.4 4.7 34 Mortgage pool securities 16.1 13.6 23.1 19.2 15.0 49.5 20.2 18.1 15.6 14.5 37.9 61.2 3S -1.2 36 Private financial sectors 26.9 38.3 33.4 17.7 35.6 6.2 10.3 25.2 43.4 27.8 34.2 -21.8 37 Corporate bonds 10.1 7.5 7.8 7.1 -.8 2.3 9.9 4.4 -2.1 .4 -3.3 7.9 38 Mortgages 3.1 .9 -1.2 -.9 -2.9 1.8 -5.3 3.5 -2.3 -3.5 1.9 1.6 39 Bank loans n.e.c -.3 2.8 -.4 -.4 2.2 3.2 .1 -.9 3.7 .7 6.0 .5 40 Open market paper 9.6 14.6 18.0 4.8 20.9 -1.8 -.1 9.7 24.8 17.0 16.0 -19.6 41 Loans from Federal Home Loan Banks 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 --1122..11 By sector 42 Sponsored credit agencies 5.8 23.1 24.3 24.4 30.1 13.1 27.1 21.7 26.9 33.3 21.4 4.7 43 Mortgage pools 16.1 13.6 23.1 19.2 15.0 49.5 20.2 18.1 15.6 14.5 37.9 61.2 44 Private financial sectors 26.9 38.3 33.4 17.7 35.6 6.2 10.3 25.2 43.4 27.8 34.2 -21.8 45 Commercial banks 1.1 1.3 1.6 .5 .4 1.2 .8 .3 .2 .5 .7 1.7 46 Bank affiliates 2.0 7.2 6.5 6.9 8.3 1.9 5.8 8.0 6.9 9.7 9.7 -5.8 47 Savings and loan associations 9.9 14.3 11.4 6.6 13.1 -1.7 .1 13.2 19.2 6.9 16.6 -19.9 48 Finance companies 16.9 18.1 16.6 6.3 14.1 5.3 6.0 6.5 17.3 11.0 7.7 2.9 49 REITs -2.5 -1.4 -1.3 -2.2 .2 .1 -2.0 -2.5 .2 .2 .1 .1 All sectors 50 Total net borrowing 379.9 477.4 489.7 443.5 499.1 496.9 411.8 475.2 522.5 475.7 476.8 516.9 51 U.S. government securities 79.9 90.5 84.8 122.9 132.6 224.0 110.7 135.1 124.5 140.7 159.6 288.4 52 State and local obligations 21.9 28.4 29.8 35.9 32.9 59.5 30.7 41.0 35.1 30.6 52.7 66.3 53 Corporate and foreign bonds 36.1 31.8 34.2 41.1 28.5 34.2 49.3 33.0 26.0 30.9 12.2 56.3 54 Mortgages 129.9 151.0 162.4 134.0 115.2 85.0 130.4 137.7 134.3 96.2 92.8 77.1 55 Consumer credit 40.2 48.8 45.4 4.9 25.3 14.4 -3.3 13.0 29.4 21.2 14.4 14.4 56 Bank loans n.e.c 29.5 59.0 51.0 46.5 57.0 54.4 24.0 69.0 56.4 57.6 82.9 26.0 57 Open market paper 15.0 26.4 40.3 21.6 54.0 6.1 35.9 7.2 56.2 51.8 32.8 -20.6 58 Other loans 27.4 41.5 41.8 36.6 53.7 19.2 34.1 39.2 60.7 46.6 29.3 9.1 External corporate equity funds raised in United States 59 Total new share issues 6.5 1.9 -3.8 22.1 -2.9 34.5 16.3 27.9 11.2 -17.0 23.5 45.6 60 Mutual funds .9 -.1 .1 5.0 7.7 19.6 5.5 4.5 8.9 6.5 14.5 24.7 61 All other 5.6 1.9 -3.9 17.1 -10.6 14.9 10.8 23.4 2.3 -23.5 9.0 20.8 62 Nonfinancial corporations 2.7 -.1 -7.8 12.9 -11.5 11.4 6.9 18.8 .9 -23.8 7.0 15.8 63 Financial corporations 2.5 2.5 3.2 2.1 .9 2.2 1.9 2.3 .8 1.0 2.2 2.2 64 Foreign shares purchased in United States .4 -.5 .8 2.1 * 1.3 1.9 2.2 .7 -.7 -.2 2.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A45 1.58 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; half-yearly data are at seasonally adjusted annual rates. 1980 1981 1982 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997777 11997788 11997799 11998800 11998811 11998822 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 317.7 368.6 388.8 355.0 391.1 412.7 325.1 384.9 402.7 379.6 365.9 459.6 By public agencies and foreign 2 Total net advances 79.2 101.9 74.6 95.8 95.9 110.9 104.6 87.0 9988..77 9933..22 9922..22 112299..66 3 U.S. government securities 34.9 36.1 -6.3 15.7 17.2 17.7 20.5 10.9 15.9 18.5 .2 35.2 4 Residential mortgages 20.0 25.7 35.8 31.7 23.4 61.1 34.9 28.5 21.4 25.5 47.4 74.7 5 FHLB advances to savings and loans 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 -12.1 6 Other loans and securities 20.1 27.6 35.9 41.3 39.1 31.4 43.4 39.1 42.1 36.0 30.9 31.8 Total advanced, by sector 7 U.S. government 10.0 17.1 19.0 23.7 24.2 19.4 24.6 22.8 27.1 21.2 14.0 24.9 8 Sponsored credit agencies 22.4 39.9 52.4 44.4 46.0 63.5 45.2 43.7 44.3 47.7 60.4 66.6 9 Monetary authorities 7.1 7.0 7.7 4.5 9.2 9.8 14.9 -5.9 -3.7 22.1 -6.3 25.9 10 Foreign 39.6 38.0 -4.6 23.2 16.6 18.2 19.9 26.5 30.9 2.2 24.1 12.3 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 21.9 36.7 47.3 43.6 45.1 62.6 47.3 39.8 4422..55 4477..88 5599..33 6655..99 12 Foreign 13.5 33.8 20.2 27.2 27.3 15.3 29.0 25.3 34.0 20.6 17.5 13.2 Private domestic funds advanced 13 Total net advances 273.9 337.1 381.8 329.9 367.6 379.7 296.9 362.9 380.5 354.7 350.4 409.1 14 U.S. government securities 45.1 54.3 91.1 107.2 115.4 206.3 90.2 124.2 108.5 122.3 159.4 253.2 15 State and local obligations 21.9 28.4 29.8 35.9 32.9 59.5 30.7 41.0 35.1 30.6 52.7 66.3 16 Corporate and foreign bonds 22.2 22.4 23.7 25.8 20.6 21.2 31.6 20.1 18.6 22.7 * 42.4 17 Residential mortgages 81.4 95.5 92.0 73.7 59.7 -1.1 69.6 77.8 78.8 40.5 15.3 -17.5 18 Other mortgages and loans 107.6 149.1 154.3 94.4 155.3 94.6 80.6 108.3 158.7 151.8 136.7 52.4 19 LESS: Federal Home Loan Bank advances 4.3 12.5 9.2 7.1 16.2 .8 5.8 8.5 19.3 13.2 13.8 -12.1 Private financial intermediation 20 Credit market funds advanced by private financial institutions 261.7 302.9 292.2 257.9 301.3 262.5 245.4 270.4 326.3 276.3 278.7 246.3 21 Commercial banking 87.6 128.7 121.1 99.7 103.5 107.8 64.7 134.8 107.8 99.2 122.5 93.1 22 Savings institutions 81.6 73.6 55.5 54.1 24.6 24.0 34.9 73.2 43.9 5.3 29.8 18.2 23 Insurance and pension funds 69.0 75.0 66.4 74.4 75.8 88.6 84.3 64.4 75.8 75.8 87.2 90.0 24 Other finance 23.5 25.6 49.2 29.8 97.4 42.1 61.5 -1.9 98.8 95.9 39.2 44.9 25 Sources of funds 261.7 302.9 292.2 257.9 301.3 262.5 245.4 270.4 326.3 276.3 278.7 246.3 26 Private domestic deposits and RP's 138.9 141.1 142.5 167.8 211.2 170.4 162.5 173.1 212.0 210.3 161.1 179.6 27 Credit market borrowing 26.9 38.3 33.4 17.7 35.6 6.2 10.3 25.2 43.4 27.8 34.2 -21.8 28 Other sources 96.0 123.5 116.4 72.4 54.6 85.9 72.7 72.1 70.9 38.2 83.4 88.4 29 Foreign funds 1.2 6.3 25.6 -23.0 -8.8 -28.6 -20.0 -26.0 -.7 -16.8 -18.3 -39.0 30 Treasury balances 4.3 6.8 .4 -2.6 -1.1 6.1 -6.1 1.0 6.0 -8.2 -5.1 17.2 31 Insurance and pension reserves 51.4 62.2 49.1 65.4 70.8 78.1 70.3 60.5 66.0 75.6 77.3 78.8 32 Other, net 39.1 48.3 41.3 32.6 -6.4 30.4 28.6 36.6 -.4 -12.3 29.4 31.4 Private domestic nonfinancial investors 33 Direct lending in credit markets 39.0 72.5 122.9 89.7 101.9 123.5 61.7 117.7 97.5 106.2 105.9 141.0 34 U.S. government securities 24.6 36.3 61.4 38.3 50.4 70.6 23.3 53.3 43.0 57.7 59.4 81.8 35 State and local obligations -.8 3.6 9.4 12.6 20.3 41.3 6.2 18.9 22.8 17.8 40.8 41.7 36 Corporate and foreign bonds -5.1 -2.9 10.2 9.3 -7.9 -8.3 7.8 10.8 -9.2 -6.6 -26.6 10.0 37 Open market paper 9.6 15.6 12.1 -3.4 3.5 -2.3 -8.1 1.4 -1.4 8.4 7.8 -12.5 38 Other 10.7 19.9 29.8 32.9 35.6 22.3 32.5 33.3 42.3 29.0 24.5 20.0 39 Deposits and currency 148.5 152.3 151.9 179.2 221.0 176.5 172.4 186.1 218.6 223.4 161.1 191.8 40 Currency 8.3 9.3 7.9 10.3 9.5 8.4 9.3 11.3 5.8 13.2 2.0 14.8 41 Checkable deposits 17.2 16.3 19.2 4.2 18.3 17.0 -2.5 11.0 26.5 10.1 9.2 24.8 42 Small time and savings accounts 93.5 63.7 61.0 79.5 46.6 122.7 73.4 85.7 26.9 66.3 77.7 167.6 43 Money market fund shares .2 6.9 34.4 29.2 107.5 24.7 61.9 -3.4 104.1 110.8 39.4 10.1 44 Large time deposits 25.8 46.6 21.2 48.3 36.3 2.1 24.4 72.1 46.8 25.7 33.7 -29.5 45 Security RPs 2.2 7.5 6.6 6.5 2.5 3.8 5.3 7.8 7.7 -2.6 1.1 6.6 46 Deposits in foreign countries 1.3 2.0 1.5 1.1 .3 -2.3 .6 1.7 .8 -.2 -2.0 -2.6 47 Total of credit market instruments, deposits and currency 187.5 224.9 274.8 269.0 322.8 300.0 234.1 303.8 316.1 329.6 267.0 332.9 48 Public holdings as percent of total 23.9 25.3 18.2 25.1 22.9 25.9 29.5 21.2 22.6 23.3 24.1 27.4 49 Private financial intermediation (in percent) 95.6 89.9 76.5 78.2 82.0 69.1 82.7 74.5 85.8 77.9 79.5 60.2 50 Total foreign funds 40.8 44.3 21.0 .2 7.8 -10.4 * .5 30.3 -14.6 5.9 -26.7 MEMO: Corporate equities not included above 51 Total net issues 6.5 1.9 -3.8 22.1 -2.9 34.5 16.3 27.9 11.2 -17.0 23.5 45.6 52 Mutual fund shares .9 -.1 .1 5.0 7.7 19.6 5.5 4.5 8.9 6.5 14.5 24.7 53 Other equities 5.6 1.9 -3.9 17.1 -10.6 14.9 10.8 23.4 2.3 -23.5 9.0 20.8 54 Acquisitions by financial institutions 7.4 4.6 10.4 14.6 22.9 31.4 8.6 20.7 25.3 20.5 21.1 41.6 55 Other net purchases -.8 -2.7 -14.2 7.5 -25.8 3.2 7.7 7.2 -14.1 -37.5 2.4 4.0 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 12 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates. outstanding, may be obtained from Flow of Funds Section, Division of Research 30. Demand deposits at commercial banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 31. Excludes net investment of these reserves in corporate equities. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • August 1983 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1982 1983 MMeeaassuurree 11998800 11998811 11998822 Nov. Dec. Jan. Feb. Mar. Apr. May June July 1 Industrial production' 147.0 151.0 138.6 134.9 135.2 137.4 138.1 140.0 142.6 144.4 146.0 148.6 Market groupings 2 Products, total 146.7 150.6 141.8 139.0 139.9 140.9 140.3 141.6 144.5 146.1 147.6 149.7 3 Final, total 145.3 149.5 141.5 138.3 139.5 140.1 138.9 139.9 142.8 144.5 146.0 148.0 4 Consumer goods 145.4 147.9 142.6 141.3 142.0 143.6 143.4 144.3 147.7 149.9 151.4 154.0 5 Equipment 145.2 151.5 139.8 134.2 136.1 135.3 132.7 133.8 136.2 137.0 138.5 139.8 6 Intermediate 151.9 154.4 143.3 141.8 141.5 143.7 145.3 147.8 150.8 152.1 153.7 156.1 7 Materials 147.6 151.6 133.7 128.4 127.8 132.0 134.9 137.6 139.7 141.8 143.6 146.8 Industry groupings 8 Manufacturing 146.7 150.4 137.6 134.0 134.5 136.7 138.2 140.4 143.1 145.0 146.8 149.4 Capacity utilization (percent)1-2 9 Manufacturing 79.6 79.4 71.1 68.8 68.9 70.0 70.6 71.6 72.9 73.7 74.6 75.8 10 Industrial materials industries 80.4 80.7 70.1 67.0 66.6 68.7 70.1 71.5 72.5 73.5 74.4 76.0 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 122.0 131.0 127.0 119.0 131.0 129.0 148.0 151.0 n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 134.9 134.7 135.1 134.9 135.0 135.4 135.9 136.5' 137.3 13 Goods-producing, total 110.1 109.4 102.6 99.2 98.9 99.5 98.9 98.8 99.4 100.2 101.0' 101.9 14 Manufacturing, total 104.3 103.7 96.9 93.7 93.6 93.8 93.8 93.9 94.5 95.1 95.6' 96.4 15 Manufacturing, production-worker ... 99.3 98.0 89.4 85.6 85.6 85.9 86.0 86.1 86.9 87.6 88.2' 89.4 16 Service-producing 152.4 154.4 154.7 154.5 154.4 154.6 154.6 154.8 155.2 155.5' 156.0' 156.7 17 Personal income, total 343.7R 386.5R 409.3' 418.0' 419.8' 421.0' 420.7' 423.8' 427.1' 431.8' 434.0' n.a. 18 Wages and salary disbursements 317.7' 349.7' 367.2' 370.7' 372.8' 376.8' 376.2' 378.6' 382.2' 387.2' 389.6' n.a. 19 Manufacturing 264.4' 287.3' 286.2' 281.3' 280.9' 286.2' 286.9' 289.3' 293.4' 296.0' 298.4' n.a. 20 Disposable personal income5 333.8 373.7 397.3 406.9 408.7 411.2 410.3 413.7 417.7 420.8 422.4 n.a. 21 Retail sales" 303.8 330.6 326.0 353.4 353.3 352.7 348.3 356.4 364.7 376.1 377.1 377.0 Prices7 22 Consumer 246.8 272.4 289.1 293.6 292.4 293.1 293.2 293.4 295.5 297.1 298.1 n.a. 23 Producer finished goods 247.0 269.8 280.7 284.9 285.5 283.9 284.1' 283.4 283.0 284.3 285.0 n.a. 1. The capacity utilization series has been revised back to January 1967. 6. Based on Bureau of Census data published in Survey of Current Business. 2. Ratios of indexes of production to indexes of capacity. Based on data from 7. Data without seasonal adjustment, as published in Monthly Labor Review. Federal Reserve, McGraw-Hill Economics Department, Department of Com- Seasonally adjusted data for changes in the price indexes may be obtained from merce, and other sources. the Bureau of Labor Statistics, U.S. Department of Labor. 3. Index of dollar value of total construction contracts, including residential, nonresidential and heavy engineering, from McGraw-Hill Information Systems NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, Company, F. W. Dodge Division. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 4. Based on data in Employment and Earnings (U.S. Department of Labor). of Current Business. Series covers employees only, excluding personnel in the Armed Forces. Figures for industrial production for the last two months are preliminary and 5. Based on data in Survey of Current Business (U.S. Department of Com- estimated, respectively. merce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1982 1983 1982 1983 1982 1983 SSeerriieess Q3 Q4 QL Q2 Q3 Q4 QL Q2 Q3 Q4 QL Q2 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 138.2 135.3 138.5 144.3 192.8 193.7 194.6 195.5 71.7 69.8 71.2 73.8 2 Mining 117.2 117.0 116.7 112.9 164.8 165.1 165.2 165.3 71.1 70.9 70.6 68.3 3 Utilities 167.9 166.2 163.6 169.8 206.5 207.4 208.5 209.8 81.3 80.1 78.5 80.9 4 Manufacturing 137.7 134.5 138.4 145.0 193.9 194.8 195.7 196.6 71.0 69.0 70.7 73.7 5 Primary processing 132.4 129.3 137.0 144.9 193.0 193.7 194.3 194.8 68.6 66.8 70.5 74.4 6 Advanced processing 140.5 137.3 139.7 144.9 194.3 195.4 196.5 197.6 72.3 70.2 71.1 73.3 7 Materials 132.6 128.7 134.8 141.7 191.0 191.7 192.3 192.9 69.4 67.1 70.1 73.5 8 Durable goods 124.7 117.1 125.2 134.8 194.4 194.8 195.2 195.6 64.2 60.2 64.2 68.9 9 Metal materials 73.0 66.5 78.6 85.4 140.6 140.3 140.2 139.9 51.9 47.4 56.1 61.0 10 Nondurable goods 155.1 157.0 163.7 171.4 215.6 216.9 217.8 218.8 71.9 72.4 75.2 78.3 11 Textile, paper, and chemical 158.4 160.8 169.3 179.0 226.8 228.3 229.4 230.7 69.8 70.5 73.8 77.6 12 Paper 145.9 147.6 149.9 152.7 163.6 164.4 165.3 166.1 89.1 89.7 90.7 91.9 13 Chemical 188.5 191.9 204.7 218.5 290.6 292.8 294.8 296.6 64.9 65.5 69.4 73.7 14 Energy materials 123.8 121.5 122.2 121.6 152.8 153.3 153.9 154.3 81.0 79.2 79.5 78.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1982 1982 1983 SSeerriieess High Low High Low July Nov. Dec. Jan. Feb. Mar. Apr. May June July Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 76.5 72.1 69.6 69.7 70.7 71.0 71.8 73.1 73.9 74.6 75.8 16 Mining 91.8 86.0 88.5 84.0 72.9 70.8 71.7 73.8 69.9 68.1 67.5 68.4 68.8 70.1 17 Utilities 94.9 82.0 86.7 83.8 81.3 80.4 79.0 78.4 77.7 79.4 80.9 81.0 81.0 82.0 18 Manufacturing 87.9 69.0 87.5 75.5 71.4 68.8 68.9 70.0 70.6 71.6 72.9 73.7 74.6 75.8 19 Primary processing 93.7 68.2 91.4 72.6 68.2 66.4 66.2 68.6 70.8 72.1 73.4 74.6 75.4 76.8 20 Advanced processing.... 85.5 69.4 85.9 77.0 73.0 70.0 70.4 70.9 70.8 71.5 72.5 73.3 74.1 75.2 2.1 Materials 92.6 69.3 88.9 74.2 69.7 67.0 66.6 68.7 70.1 71.5 72.5 73.5 74.4 76.0 22 Durable goods 91.4 63.5 88.4 68.4 64.9 59.8 59.8 62.3 64.2 66.0 67.7 68.9 70.1 71.9 23 Metal materials 97.8 68.0 95.4 59.4 51.3 46.2 46.8 53.3 56.1 58.8 59.9 60.8 62.4 64.6 24 Nondurable goods 94.4 67.4 91.7 77.5 70.7 72.5 71.6 73.4 75.3 76.8 77.2 78.7 79.1 80.3 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 68.6 70.5 70.0 71.4 74.1 75.8 76.4 78.1 78.5 79.6 26 Paper 99.4 72.4 97.9 89.8 87.0 91.1 87.4 90.9 90.8 90.3 91.0 93.0 91.8 93.8 27 Chemical 95.5 64.2 91.3 70.7 64.0 65.4 65.4 66.4 69.9 71.9 72.6 74.1 74.4 75.2 28 Energy materials 94.5 84.4 88.7 84.4 82.5 79.2 78.5 80.1 79.2 79.2 78.9 78.7 78.9 80.9 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1983 CCaatteeggoorryy 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June July HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 175,543 175,693 175,850 175,996 176,151 176,320 176,498 2 Labor force (including Armed Forces)1 109,042 110,812 112,384 112,737 112,741 112,678 112,988 112,947 114,127 114,067 3 Civilian labor force 106,940 108,670 110,204 110,548 110,553 110,484 110,786 110,749 111,932 111,875 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 95,691 95,670 95,729 96,088 96,190 97,264 97,758 5 Agriculture 3,364 3,368 3,401 3,412 3,393 3,375 3,371 3,367 3,522 3,527 Unemployment 6 Number 7,637 8,273 10,678 11,446 11,490 11,381 11,328 11,192 11,146 10,590 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.4 10.4 10.3 10.2 10.1 10.0 9.5 8 Not in labor force 60,805 61,460 62,067 62,806 62,952 63,172 63,008 63,204 62,193 62,431 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,406 91,156' 89,596' 88,886 88,746' 88,814 89,101' 89,421' 89,832' 90,319 10 Manufacturing 20,285 20,170' 18,853' 18,244 18,245 18,267 18,376' 18,493' 18,587' 18,749 11 Mining 1,027' 1,132 1,122 1,037 1,014 1,006 997 994' 1,006' 1,016 12 Contract construction 4,346' 4,176 3,912 3,905 3,790 3,757 3,786' 3,860' 3,941' 3,984 13 Transportation and public utilities 5,146' 5,157 5,057 4,980 4,965 4,963 4,988 4,993' 4,991' 4,977 14 Trade 20,310' 20,551 20,547 20,355 20,343 20,350 20,329' 20,356' 20,485' 20,498 15 Finance 5,160' 5,301 5,350 5,374 5,384 5,391 5,423' 5,435' 5,451 5,471 16 Service 17,890' 20,547' 20,401' 19,238 19,262 19,356 19,478' 19,546' 19,660' 19,802 17 Government 16,241' 16,024 15,784 15,753 15,742 15,724 15,724' 15,744' 15,711' 15,822 1. Persons 16 years of age and over. Monthly figures, which are based on 3. Data include all full- and part-time employees who worked during, or sample data, relate to the calendar week that contains the 12th day; annual data received pay for, the pay period that includes the 12th day of the month, and are averages of monthly figures. By definition, seasonality does not exist in exclude proprietors, self-employed persons, domestic servants, unpaid family population figures. Based on data from Employment and Earnings (U.S. Depart- workers, and members of the Armed Forces. Data are adjusted to the March 1983 ment of Labor). 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 • August 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1982 1983 pro- 1982 por- avg. tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ May JuneP Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 138.6 138.8 138.4 137.3 135.7 134.9 135.2 137.4 138.1 140.0 142.6 144.4 146.0 2 Products 60.71 141.8 142.6 142.0 140.8 139.3 139.0 139.9 140.9 140.3 141.6 144.5 146.1 147.6 3 Final products 47.82 141.5 142.5 141.2 140.0 138.7 138.3 139.5 140.1 138.9 139.9 142.8 144.5 146.0 4 Consumer goods 27.68 142.6 145.8 144.1 143.4 142.2 141.3 142.0 143.6 143.4 144.3 147.7 149.9 151.4 5 Equipment 20.14 139.8 138.0 137.3 135.2 134.0 134.2 136.1 135.3 132.7 133.8 136.2 137.0 138.5 6 Intermediate products 12.89 143.3 142.8 144.7 143.7 141.6 141.8 141.5 143.7 145.3 147.8 150.8 152.1 153.7 7 Materials 39.29 133.7 133.0 132.8 132.0 130.0 128.4 127.8 132.0 134.9 137.6 139.7 141.8 143.6 Consumer goods S Durable consumer goods 7.89 129.2 137.3 132.9 131.3 126.5 124.6 125.9 131.6 134.4 136.3 140.5 145.0 149.2 9 Automotive products 2.83 129.5 149.7 135.5 135.5 123.6 120.7 128.7 136.2 144.3 142.6 144.9 152.2 160.3 10 Autos and utility vehicles 2.03 99.0 127.7 107.1 105.8 89.6 86.9 99.0 107.0 120.8 116.4 117.8 124.9 135.4 IT Autos 1.90 86.6 114.6 93.3 94.3 79.5 77.7 87.9 97.1 107.3 99.9 102.7 107.4 118.3 12 Auto parts and allied goods .80 206.9 205.4 207.6 210.7 210.0 206.6 204.0 210.2 203.9 209.3 213.6 221.5 223.6 13 Home goods 5.06 129.1 130.4 131.4 128.9 128.1 126.8 124.3 129.1 128.8 132.8 138.1 141.0 143.0 14 Appliances, A/C, and TV 1.40 102.6 102.7 104.5 99.4 106.1 104.8 94.2 109.5 105.8 105.0 106.1 112.8 114.2 15 Appliances and TV 1.33 104.6 106.1 108.6 104.1 110.5 108.4 98.3 112.9 108.8 108.5 109.7 116.1 118.2 16 Carpeting and furniture 1.07 149.7 151.4 152.5 153.3 151.9 151.4 150.8 149.0 156.7 168.3 180.5 181.9 187.5 17 Miscellaneous home goods 2.59 135.0 136.7 137.2 134.9 130.1 128.6 129.8 131.4 129.7 133.3 137.9 139.4 140.3 18 Nondurable consumer goods 19.79 148.0 149.1 148.6 148.2 148.5 147.9 148.4 148.3 147.0 147.5 150.5 151.9 152.3 19 Clothing 4.29 20 Consumer staples 15.50 159.0 159.7 159.4 158.8 159. i 158.1 158.8 158.6 157.4 158.1 161.1 162.2 162.5 21 Consumer foods and tobacco 8.33 149.7 149.9 149.6 148.6 150.2 149.0 149.5 150.9 149.5 148.4 150.9 152.2 22 Nonfood staples 7.17 169.7 171.2 170.8 170.7 169.5 168.7 169.6 167.6 166.5 169.4 172.9 174.0 173.4 23 Consumer chemical products .... 2.63 219.9 222.3 222.4 221.7 220.0 218.9 220.9 222.6 220.9 225.6 225.5 227.8 227.0 24 Consumer paper products 1.92 127.7 128.1 129.4 128.2 125.3 125.1 128.3 127.1 127.9 128.1 129.2 128.6 128.7 25 Consumer energy products 2.62 150.2 151.4 149.3 150.6 151.1 150.2 148.4 142.2 140.2 143.3 152.2 153.3 152.5 2266 11..4455 117700..88 116677..77 116699..77 116699..55 116699..11 117711..55 116699..33 116644..11 116622..99 116666..11 117755..55 117744..11 Equipment 27 Business 12.63 157.9 154.9 153.9 150.5 147.1 146.4 148.1 146.6 142.7 143.7 146.9 148.0 149.8 28 Industrial 6.77 134.9 131.3 128.4 123.8 118.3 117.2 117.9 118.4 113.7 113.1 113.5 114.6 116.1 29 Building and mining 1.44 214.2 200.4 190.8 182.1 169.3 165.7 171.9 173.8 153.6 145.3 141.8 146.2 148.0 30 Manufacturing 3.85 107.2 106.0 104.4 101.6 98.0 97.5 97.0 97.6 97.9 99.7 101.7 102.2 104.4 31 Power 1.47 129.9 129.6 130.1 124.7 121.0 121.0 119.7 118.3 116.0 116.2 116.6 115.9 115.5 32 Commercial transit, farm 5.86 184.4 182.2 183.3 181.4 180.5 180.2 183.0 179.2 176.1 179.2 185.4 186.6 188.7 33 Commercial 3.26 253.5 248.8 253.5 254.0 253.5 254.8 258.6 254.9 251.2 255.7 264.3 265.9 269.7 34 Transit 1.93 103.9 106.3 102.0 95.5 93.2 92.3 96.2 90.8 88.2 90.1 92.0 92.7 93.1 35 Farm .67 80.5 76.9 75.8 76.1 76.8 70.7 65.1 66.0 63.4 63.4 70.2 71.3 70.0 36 Defense and space 7.51 109.4 109.5 109.5 109.5 111.9 113.6 115.9 116.4 116.1 117.0 118.2 118.6 119.5 Intermediate products 37 Construction supplies 6.42 124.3 124.1 127.1 125.5 122.5 123.4 123.0 127.0 129.7 133.1 136.4 138.6 140.2 38 Business supplies 6.47 162.1 161.4 162.1 161.8 160.5 160.1 159.8 160.3 160.9 162.3 165.2 165.4 167.1 39 Commercial energy products 1.14 181.1 179.8 178.1 179.2 180.4 182.4 182.4 180.6 178.6 180.3 183.3 181.7 181.5 Materials 40 Durable goods materials 20.35 125.0 126.0 125.1 123.0 118.5 116.4 116.5 121.5 125.3 128.7 132.4 134.8 137.3 41 Durable consumer parts 4.58 95.3 103.8 101.0 97.1 91.4 90.0 91.1 96.2 101.6 104.0 106.5 108.7 110.1 42 Equipment parts 5.44 166.8 166.1 164.1 158.3 155.4 155.1 155.3 157.5 158.8 162.5 167.2 170.6 174.6 43 Durable materials n.e.c 10.34 116.2 114.8 115.4 115.8 111.1 107.7 107.4 113.8 118.2 121.9 125.4 127.5 129.8 44 Basic metal materials 5.57 79.9 75.7 76.1 77.7 73.0 69.1 68.7 78.1 82.4 86.0 87.8 89.1 91.5 45 Nondurable goods materials 10.47 157.5 152.3 154.5 158.5 158.2 157.3 155.6 159.7 164.0 167.5 168.7 172.1 173.3 46 Textile, paper, and chemical materials 7.62 161.1 155.3 157.7 162.2 161.5 161.0 160.0 163.7 170.0 174.3 175.9 180.1 181.1 47 Textile materials 1.85 102.2 99.6 103.2 103.3 104.4 102.5 102.1 104.7 106.4 110.6 110.6 114.1 117.0 48 Paper materials 1.62 145.6 142.1 146.6 148.9 148.9 149.7 144.1 150.1 150.1 149.5 150.8 154.4 152.8 49 Chemical materials 4.15 193.5 185.4 186.5 193.7 192.0 191.6 192.0 195.4 206.2 212.5 214.9 219.7 220.9 50 Containers, nondurable 1.70 161.4 158.1 162.8 167.3 164.9 160.8 155.2 162.1 159.6 163.8 163.2 164.3 166.1 51 Nondurable materials n.e.c 1.14 127.9 123.4 120.1 121.1 125.5 127.4 127.2 129.6 130.5 127.7 129.1 129.9 131.5 52 Energy materials 8.48 125.1 126.0 124.5 121.0 122.6 121.4 120.4 123.0 121.8 121.9 121.6 121.4 121.9 53 Primary energy 4.65 116.0 117.2 113.8 111.1 114.4 113.7 113.5 116.5 115.4 114.4 113.9 114.1 113.4 54 Converted fuel materials 3.82 136.3 136.7 137.4 133.0 132.6 130.8 128.9 130.8 129.6 131.1 131.0 130.3 132.3 Supplementary groups 55 Home goods and clothing 9.35 119.6 121.4 121.3 120.1 119.9 119.6 118.2 120.8 119.9 122.0 126.3 128.8 130.4 56 Energy, total 12.23 135.7 136.4 134.8 132.7 134.1 133.3 132.2 132.4 131.0 131.9 133.9 133.8 134.0 57 Products 3.76 159.6 160.0 158.0 159.3 160.0 160.0 158.7 153.8 151.9 154.5 161.7 161.9 161.3 58 Materials 8.48 125.1 126.0 124.5 121.0 122.6 121.4 120.4 123.0 121.8 121.9 121.6 121.4 121.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1982 1983 SIC 1982 Grouping code por- avg. tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ May June? July Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 146.3 142.6 141.3 139.7 140.4 140.4 140.1 141.3 141.7 137.7 138.9 139.9 140.5 142.8 2 Mining 6.36 126.1 120.1 116.9 114.7 115.9 116.8 118.4 121.9 114.5 112.6 111.6 113.2 113.8 115.9 3 Utilities 5.69 168.7 167.7 168.5 167.5 167.8 166.7 164.2 163.1 171.9 165.8 169.3 169.9 170.3 172.8 4 Electric 3.88 190.5 189.2 189.9 188.2 188.4 188.3 185.6 184.4 191.6 188.2 192.7 193.2 193.5 196.7 5 Manufacturing 87.95 137.6 138.1 138.0 137.1 135.0 134.0 134.5 136.7 138.0 140.4 143.1 145.0 146.8 149.4 6 Nondurable 35.97 156.2 155.7 156.9 156.7 156.2 155.3 155.6 157.4 157.5 160.7 163.3 165.1 166.9 168.6 7 Durable 51.98 124.7 125.9 124.9 123.5 120.3 119.3 119.9 122.5 124.5 126.3 129.1 131.0 133.0 136.1 Mining 8 Metal 10 .51 82.4 58.1 53.4 55.4 63.1 70.4 74.9 81.7 71.2 75.2 79.8 84.2 83.3 9 Coal 11.12 .69 142.7 140.3 135.8 127.9 143.2 134.1 129.7 144.8 135.0 127.3 125.3 125.6 124.6 139.9 10 Oil and gas extraction 13 4.40 131.1 127.0 123.3 121.0 119.1 120.3 122.9 124.6 117.5 114.4 112.2 112.8 113.6 114.4 11 Stone and earth minerals 14 .75 112.1 103.8 105.7 106.3 108.5 111.9 111.7 112.8 108.1 114.0 117.7 123.4 125.8 Nondurable manufactures 12 Foods 20 8.75 151.1 151.0 150.7 149.0 151.5 152.0 152.8 154.4 147.0 152.0 153.7 154.7 13 Tobacco products 21 .67 118.0 121.4 120.6 113.3 110.6 113.0 109.9 104.7 115.9 113.4 114.8 110.6 14 Textile mill products 22 2.68 124.5 124.3 125.9 126.1 125.9 123.1 122.2 125.8 128.7 131.9 136.6 139.6 142.0 15 Apparel products 23 3 31 16 Paper and products 26 3.21 150.8 147.0 152.5 154.3 155.0 154.5 151.1 158.8 160.9 156.3 157.0 161.3 161.5 164.3 17 Printing and publishing 27 4.72 144.1 143.9 145.3 144.3 142.0 141.7 142.8 141.3 135.8 145.9 145.7 145.2 147.5 148.5 18 Chemicals and products 28 7.74 196.1 194.1 195.6 196.4 194.1 192.8 195.9 197.6 200.0 205.7 208.5 210.9 212.7 19 Petroleum products 29 1.79 121.8 124.7 121.4 122.6 123.8 120.0 118.7 113.5 108.6 114.8 120.6 122.9 123.1 124.5 20 Rubber and plastic products 30 2.24 254.7 256.8 261.1 262.0 256.3 250.2 249.7 256.2 275.2 272.0 283.0 289.1 292.8 21 Leather and products 31 .86 60.9 62.9 60.8 60.9 59.5 57.7 56.0 59.5 64.1 59.4 58.7 59.9 61.0 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 87.1 86.5 86.9 89.5 91.9 92.5 93.5 93.4 91.9 93.2 92.6 93.4 94.8 23 Lumber and products 24 1.64 112.6 116.9 120.3 119.9 117.2 119.1 121.4 130.0 130.5 128.7 132.1 135.8 138.0 24 Furniture and fixtures 25 1.37 151.9 154.5 156.7 155.7 154.3 152.4 153.7 150.0 162.5 161.0 167.7 169.6 172.4 25 Clay, glass, stone products 32 2.74 128.2 126.9 128.8 130.4 128.1 127.3 125.4 128.0 124.8 135.6 138.3 139.3 139.9 26 Primary metals 33 6.57 75.3 72.9 72.9 73.2 69.6 63.6 63.5 73.1 79.4 81.2 83.1 84.9 85.8 88.6 27 Iron and steel 331.2 4.21 61.7 58.1 57.4 56.4 54.1 47.5 46.6 59.0 64.3 66.9 68.5 69.5 70.3 28 Fabricated metal products 34 5.93 114.8 115.5 114.3 112.3 107.6 107.0 107.3 107.6 112.3 113.9 115.3 115.5 117.6 120.0 29 Nonelectrical machinery 35 9.15 149.0 147.1 147.2 144.9 140.4 139.6 139.2 138.0 137.1 138.6 143.1 145.9 149.0 152.7 30 Electrical machinery 36 8.05 169.3 170.3 169.7 167.0 165.4 165.5 165.5 169.5 170.1 173.8 177.2 180.1 182.1 186.6 31 Transportation equipment 37 9.27 104.9 112.7 107.0 105.3 100.8 100.2 103.7 106.3 110.5 110.1 111.4 113.8 116.5 120.0 32 Motor vehicles and parts 371 4.50 109.8 127.2 116.7 113.5 103.0 101.7 108.8 113.9 124.8 123.2 125.5 130.4 136.2 142.3 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 100.4 99.0 97.8 97.6 98.6 98.7 98.9 99.1 97.0 97.7 98.1 98.1 98.0 99.0 34 Instruments 38 2.11 161.9 165.2 165.5 161.9 157.4 155.8 155.2 154.5 151.6 154.0 155.1 156.0 155.3 156.4 35 Miscellaneous manufactures 39 1.51 137.0 134.7 133.9 132.9 129.6 129.5 128.2 131.3 130.6 136.9 145.0 149.0 150.6 152.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 579.6 585.8 578.5 575.3 570.0 568.4 572.9 578.1 578.4 584.1 592.6 600.6 607.6 617.3 37 Final 390.9 451.1 457.2 449.2 446.3 442.8 441.3 445.8 448.3 447.3 451.3 457.7 464.7 469.8 477.3 38 Consumer goods . 277.5 308.0 314.9 309.1 309.3 306.6 305.6 306.8 310.9 312.0 313.8 318.8 324.6 328.6 335.5 39 Equipment 113.4 143.1 142.3 140.1 137.0 136.2 135.7 138.9 137.4 135.3 137.5 138.9 140.1 141.2 141.9 40 Intermediate 116.6 128.5 128.7 129.3 129.0 127.2 127.1 127.1 129.8 131.1 132.8 134.9 135.9 137.8 140.0 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • August 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 1,001 1,154 1,227 1,326 1,447 1,479 1,467 1,536 1,635 1,745 2 1-family 710 564 546 657 738 753 866 835 859 841 940 1,003 3 2-or-more-family 480 421 454 497 489 573 581 644 608 695 695 742 4 Started 1,292 1,084 1,062 1,142 1,361 1,280 1,694 1,784 1,605 1,506 1,799 1,747 5 1-family 852 705 663 716 868 842 1,126 1,103 1,008 1,001 1,187 1,103 6 2-or-more-family 440 379 400 426 493 438 568 681 597 505 612 644 7 Under construction, end of period1 896 682 720 691 712 730 756 796 828' 860 898 f 8 1-family 515 382 400 383 395 411 428 455 472 490 517 | 9 2-or-more-family 382 301 320 307 317 319 329 341 356' 370 381 1 10 Completed 1,502 1,266 1,006 1,077 1,053 1,035 1,195 1,138 1,147' 1,158 1,370 n.a. 11 1-family 957 818 631 679 679 647 782 709 788' 801 856 1 12 2-or-more-family 545 447 374 398 374 388 413 429 359' 357 514 \ 13 Mobile homes shipped 222 241 239 224 251 243 284 283 276 291 298 Merchant builder activity in 1-family units 14 Number sold 545 436 413 481 545 529 611 593 611' 637 657 638 15 Number for sale, end of period1 342 278 255 245 246 251 259 262 262 267 280 289 Price (thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 69.7 73.5 71.7 73.5 73.8 72.5' 74.5 75.4 77.2 Average 17 Units sold 76.4 83.1 83.8 79.9 87.8 86.7 87.2 86.8 86.2' 87.6 89.5 9933..00 EXISTING UNITS (1-family) 18 Number sold 2,974 2,418 1,991 1,990 2,150 2,260 2,580 2,460 2,710 2,730 2,900 2,930 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 66.9 67.7 67.8 68.1 68.2 68.9 68.8 69.2 7722..33 20 Average 72.7 78.0 80.4 79.3 80.4 80.6 80.0 80.3 81.1 81.3 81.7 85.5 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,712 239,418 232,048 234,067 243,714 240,207 247,914 243,032 241,908 245,548 253,169 259,734 22 Private 175,700 186,069 180,979 181,899 190,520 190,768 195,032 194,331 194,865 197,998 204,679 211,862 23 Residential 87,262 86,567 74,809 76,432 81,245 86,018 89,701 93,568 96,127 101,987 107,565 112,358 24 Nonresidential, total 88,438 99,502 106,170 105,467 109,275 104,750 105,331 100,763 98,738 96,011 97,114 99,504 Buildings 25 Industrial 13,839 17,031 17,346 17,117 16,716 15,631 15,182 14,315 14,263 13,223 13,047 1133,,666622 26 Commercial 29,940 34,243 37,281 36,996 37,861 36,934 38,167 36,675 35,469 33,619 33,291 35,214 27 Other 8,654 9,543 10,507 10,863 11,517 11,784 11,983 11,664 11,598 10,770 11,237 10,961 28 Public utilities and other 36,005 38,685 41,036 40,491 43,181 40,401 39,999 38,109 37,408 38,399 39,539 39,667 29 Public 55,011 53,346 51,068 52,168 53,194 49,439 52,882 48,701 47,043 47,549 48,490 47,872 30 Military 1,880 1,966 2,205 2,364 2,572 2,432 2,341 2,421 2,541 2,782 2,273 2,173 31 Highway 13,770 13,599 13,521 14,447 14,409 13,048 13,966 12,509 11,866' 12,900 13,044 12,375 32 Conservation and development 5,089 5,300 5,029 4,752 4,708 4,625 4,756 4,532 4,894 4,706 4,240 4,555 33 Other 34,272 32,481 30,313 30,605 31,505 29,334 31,819 29,239 27,742 27,161 28,933 28,769 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 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of comparable with data in prior periods because of changes by the Bureau of the existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from originating agency. Permit authoriza- Construction Reports (C-30-76-5), issued by the Bureau in July 1976. tions are 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 C m h o an n g th e s f e ro ar m li e 1 r 2 Change ( a f t r o a m nn u 3 a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll JJJuuunnneee IIIttteeemmm 1982 1983 1983 111999888333 11998822 11998833 (((111999666777 JJuunnee JJuunnee === 111000000)))111 Sept. Dec. Mar. June Feb. Mar. Apr. May June CONSUMER PRICES2 1 All items 7.1 2.6 4.1 .5 .4 5.4 -.2 .1 .6 .5 .2 298.1 ? 5.2 1.5 .6 .8 2.8 1.7 .0 .6 .4 .3 -.3 292.0 3 Energy items 1.1 2.1 8.1 10.2 -25.1 21.0 -3.7 -.9 2.0 2.5 .3 427.3 4 All items less food and energy 8.5 3.0 4.7 -.3 4.4 3.9 .4 .2 .4 .3 .3 285.5 Commodities 6.7 4.0 2.4 5.4 5.7 2.9 .5 .4 .1 .2 .4 241.5 6 Services 10.0 2.0 4.6 -4.8 3.7 4.6 .3 .5 .3 .3 336.8 PRODUCER PRICES 7 Finished goods 3.5 1.8 4.2 5.2 -4.7 2.9 .2' -.3' -.1 .3 .5 285.0 8 Consumer foods 3.8 -0.9 -7.7 .8 3.6 .2 1.0' .1' 1.2 -.5 -.6 261.0 9 Consumer energy -7.9 0.3 30.9 7.0 -34.3 10.1 -3.4' -2.s7'y -2.8 2.2 3.2 792.2 10 Other consumer goods 5.6 3.1 4.2 7.9 -2.3 2.9 .7' .2 .1 .5 239.2 11 Capital equipment 5.8 2.8 3.5 3.6 3.3 .8 .4' .6' -.3 .2 .2 286.9 17 Intermediate materials3 1.1 0.7 2.3 1.5 -5.1 4.0 -.2' -.5' -.4 .4 .9 316.8 13 Excluding energy 2.4 1.4 1.0 1.0 1.1 2.5 .4' .O' -.2 .4 .4 294.2 Crude materials 14 -1.7 -3.0 -26.4 1.3 18.1 .8 2.4' .7' 3.0 -1.2 -1.6 225522..11 15 -0.2 0.0 8.7 6.4 -7.6 -6.5 -1.5' .7' -1.4 -.3 .0 791.8 16 Other -12.4 6.1 2.9 -8.0 -15.7 58.5 -S.O' 1.8' 2.0 5.2 4.6 248.7 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds, rental-equivalence measure of homeownership after 1982. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • August 1983 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1982r 1983r AAccccoouunntt 119988CC 119988 VV 11998822rr Q2 Q3 Q4 Ql' Q2 GROSS NATIONAL PRODUCT 1 Total 2,631.7 2,954.1 3,073.0 3,070.2 3,090.7 3,109.6 3,171.5 3,273.7 By source 2 Personal consumption expenditures 1,668.1 1,857.2 1,991.9 1,972.8 2,008.8 2,046.9 2,073.0 2,151.3 3 Durable goods 214.7 236.1 244.5 242.9 243.4 252.1 258.5 278.1 4 Nondurable goods 668.8 733.9 761.0 754.7 766.6 773.0 777.1 799.8 5 Services 784.5 887.1 986.4 975.2 998.9 1,021.8 1,037.4 1,073.4 6 Gross private domestic investment 401.9 474.9 414.5 432.5 425.3 377.4 404.1 451.5 7 Fixed investment 411.7 456.5 439.1 443.7 430.2 433.8 443.5 462.1 8 Nonresidential 308.8 352.2 348.3 352.7 342.3 337.0 332.1 335.3 9 Structures 110.9 133.4 141.9 144.2 140.0 138.6 132.9 127.7 10 Producers' durable equipment 197.9 218.9 206.4 208.5 202.2 198.4 199.3 207.6 11 Residential structures 102.9 104.3 90.8 91.0 87.9 96.8 111.3 126.8 12 Nonfarm 98.1 99.8 86.0 86.1 83.4 91.2 106.7 121.8 13 Change in business inventories -9.8 18.5 -24.5 -11.2 -4.9 -56.4 -39.4 -10.6 14 Nonfarm -4.5 10.9 -23.1 -8.8 -2.3 -53.7 -39.0 -8.6 15 Net exports of goods and services 24.0 26.3 17.4 33.3 .9 5.6 17.0 -12.5 16 Exports 338.8 368.8 347.6 364.5 346.0 321.6 326.9 321.7 17 Imports 314.8 342.5 330.2 331.2 345.0 316.1 309.9 334.3 18 Government purchases of goods and services 537.8 595.7 649.2 631.6 655.7 679.7 677.4 683.3 19 Federal 197.1 229.2 258.7 244.1 261.7 279.2 273.5 274.8 20 State and local 340.8 366.5 390.5 387.5 394.0 400.5 404.0 408.6 By major type of product 21 Final sales, total 2,641.5 2,935.6 3,097.5 3,081.4 3,095.6 3,165.9 3,210.9 3,284.2 22 Goods 1,140.6 1,291.9 1,280.9 1,290.8 1,286.7 1,264.8 1,292.2 1,347.7 23 Durable 477.9 528.0 500.8 514.3 518.4 474.0 482.7 535.1 24 Nondurable 662.7 763.9 780.1 776.5 768.3 790.8 809.5 812.6 25 Services 1,225.2 1,374.2 1,511.2 1,496.4 1,527.2 1,560.5 1,588.4 1,626.7 26 Structures 266.0 288.0 281.0 283.0 276.9 284.3 290.9 299.2 27 Change in business inventories -9.8 18.5 -24.5 -11.2 -4.9 -56.4 -39.4 -10.6 28 Durable goods -4.1 3.6 -15.5 -2.5 6.4 -45.0 -38.2 -9.9 29 Nondurable goods -5.7 14.9 -9.1 -8.7 -11.3 -11.4 -1.2 -0.7 30 MEMO: Total GNP in 1972 dollars 1,475.0 1,513.8 1,485.4 1,489.3 1,485.7 1,480.7 1,490.1 1,521.4 NATIONAL INCOME 31 Total 2,116.6 2,373.0 2,450.4 2,448.9 2,458.9 2,474.0 2,528.5 n.a. 32 Compensation of employees 1,599.6 1,769.3 1,865.7 1,859.9 1,879.5 1,889.0 1,923.7 1,969.9 33 Wages and salaries 1,356.6 1,493.2 1,568.1 1,563.9 1,579.8 1,586.0 1,610.6 1,648.3 34 Government and government enterprises 260.3 284.4 306.0 303.1 307.7 314.5 319.2 323.3 35 Other 1,096.4 1,208.8 1,262.1 1,260.8 1,272.1 1,271.5 1,291.5 1,325.0 36 Supplement to wages and salaries 243.0 276.0 297.6 296.0 299.7 302.9 313.1 321.6 37 Employer contributions for social insurance 115.0 132.5 140.9 140.6 141.5 142.5 148.8 151.5 38 Other labor income 128.0 143.5 156.6 155.4 158.2 160.4 164.3 170.1 39 Proprietors' income1 117.5 120.2 109.0 104.9 103.6 116.2 120.6 130.1 40 Business and professional1 95.6 89.7 87.5 88.1 87.8 90.2 98.4 106.0 41 Farm1 21.8 30.5 21.5 16.8 15.8 26.0 22.2 24.1 42 Rental income of persons2 31.5 41.4 49.9 49.0 50.9 52.3 54.1 54.8 43 Corporate profits1 175.4 192.3 164.8 166.8 168.5 161.9 181.8 n.a. 44 Profits before tax3 234.6 227.0 174.2 178.8 177.3 167.5 169.7 n.a. 45 Inventory valuation adjustment -42.9 -23.6 -8.4 -8.5 -9.0 -10.3 -1.7 -8.5 46 Capital consumption adjustment -16.3 -11.0 -1.1 -3.5 .1 4.7 13.9 23.0 47 Net interest 192.6 249.9 261.1 268.3 256.4 254.7 248.3 244.4 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 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. 1982' 1983' AAccccoouunntt 11998800'' 11998811'' 11998822'' Q2 Q3 Q4 Ql Q2 PERSONAL INCOME AND SAVING 1 Total personal income 2,165.3 2,435.0 2,578.6 2,563.2 2,591.3 2,632.0 2,657.7 2,715.0 2 Wage and salary disbursements 1,356.7 1,493.2 1,568.1 1,563.8 1,579.8 1,586.0 1,610.7 1,649.6 3 Commodity-producing industries 468.1 509.5 509.2 513.7 508.9 499.5 508.6 522.6 4 Manufacturing 354.6 385.3 383.8 386.8 384.8 377.4 385.4 396.9 5 Distributive industries 330.7 361.6 378.8 378.1 381.9 383.5 386.4 394.9 6 Service industries 297.6 337.7 374.1 369.1 381.2 388.5 396.4 407.5 7 Government and government enterprises 260.3 284.4 306.0 303.0 307.7 314.5 319.2 324.6 8 Other labor income 128.0 143.5 156.6 155.4 158.2 160.4 164.3 170.1 9 Proprietors' income1 117.5 120.2 109.0 104.9 103.6 116.2 120.6 130.1 10 Business and professional1 95.6 89.7 87.5 88.1 87.8 90.2 98.4 106.0 11 Farm1 21.8 30.5 21.5 16.8 15.8 26.0 22.2 24.1 12 Rental income of persons2 31.5 41.4 49.9 49.0 50.9 52.3 54.1 54.8 13 Dividends 56.8 62.8 66.4 65.6 66.4 67.9 68.8 69.3 14 Personal interest income 266.0 341.3 366.2 371.9 364.8 363.1 357.2 356.7 15 Transfer payments 297.6 337.2 374.6 364.2 380.4 399.0 398.5 403.0 16 Old-age survivors, disability, and health insurance benefits 154.2 182.0 204.5 197.3 209.3 216.5 217.4 220.8 17 LESS: Personal contributions for social insurance 88.7 104.6 112.0 111.7 112.7 112.9 116.5 118.6 18 EQUALS: Personal income 2,165.3 2,435.0 2,578.6 2,563.2 2,591.3 2,632.0 2,657.7 2,715.0 19 LESS: Personal tax and nontax payments 336.5 387.4 402.1 404.2 399.8 404.1 401.8 412.2 20 EQUALS: Disposable personal income 1,828.9 2,047.6 2,176.5 2,159.0 2,191.5 2,227.8 2,255.9 2,302.8 21 LESS: Personal outlays 1,718.7 1,912.4 2,051.1 2,031.9 2,068.4 2,107.0 2,134.2 2,213.5 22 EQUALS: Personal saving 110.2 135.3 125.4 127.1 123.0 120.8 121.7 89.4 MEMO: Per capita (1972 dollars) 23 Gross national product 6,478 6,584 6,399 6,425 6,393 66,,335555 66,,338822 66,,550022 24 Personal consumption expenditures 4,092 4,161 4,179 4,180 4,178 4,205 4,226 4,319 25 Disposable personal income 4,487 4,587 4,567 4,574 4,558 4,576 4,599 4,623 26 Saving rate (percent) 6.0 6.6 5.8 5.9 5.6 5.4 5.4 3.9 GROSS SAVING 27 Gross saving 405.9 483.8 405.8 439.5 397.9 351.3 398.5 n.a. 28 Gross private saving 435.4 509.6 521.6 520.7 524.9 526.6 541.5 n.a. 29 Personal saving 110.2 135.3 125.4 127.1 123.0 120.8 121.7 89.4 30 Undistributed corporate profits1 32.1 44.8 37.0 37.5 38.9 37.5 48.9 n.a. 31 Corporate inventory valuation adjustment -42.9 -23.6 -8.4 -8.5 -9.0 -10.3 -1.7 -8.5 Capital consumption allowances 32 Corporate 179.3 202.9 222.0 220.2 222244..55 222277..77 222288..33 223300..11 33 Noncorporate 113.8 126.6 137.2 135.9 138.5 140.5 142.6 144.3 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -30.7 -26.9 -115.8 -81.2 --112277..00 --117755..33 --114422..99 n.a. 36 Federal -61.3 -62.2 -147.1 -113.2 -158.3 -208.2 -183.3 n.a. 37 State and local 30.6 35.3 31.3 32.0 31.3 32.9 40.4 n.a. 38 Capital grants received by the United States, net 1.2 1.1 .0 .0 .0 .0 .0 .0 39 Gross investment 408.2 478.9 406.2 441.3 400.5 355.5 397.4 415.4 40 Gross private domestic 401.9 474.9 414.5 432.5 425.3 377.4 404.1 451.5 41 Net foreign 6.3 4.0 -8.3 8.7 -24.8 -21.9 -6.7 -36.1 42 Statistical discrepancy 2.3 -4.9 .5 1.7 2.5 4.2 -1.2 -1.2 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 • August 1983 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1982 1983 IItteemm ccrreeddiittss oorr ddeebbiittss 11998800 11998811 11998822 Ql Q2 Q3 Q4 Ql? 1 Balance on current account 421 4,592 -11,211 564 11,,443344 --66,,559966 --66,,662211 --33,,004455 259 22,,221188 --88,,114433 --55,,554466 --22,,996611 3 Merchandise trade balance2 -25,544 -28,067 -36,389 -6,103 --55,,885544 --1133,,007788 --1111,,335544 --88,,773388 4 Merchandise exports 224,237 237,019 211,217 55,636 5544,,999966 5522,,224411 4488,,334444 4499,,556633 5 Merchandise imports -249,781 -265,086 -247,606 -61,739 --6600,,885500 --6655,,331199 --5599,,669988 --5588,,330011 6 Military transactions, net -2,286 -1,355 179 -51 220011 5544 --2266 770022 7 Investment income, net3 29,570 33,484 27,304 6,937 77,,553366 66,,882211 66,,000088 55,,223355 8 Other service transactions, net 5,738 7,462 5,729 1,842 11,,335533 11,,334499 11,,118822 11,,331199 9 Remittances, pensions, and other transfers -2,347 -2,382 -2,621 -603 -702 -656 -661 -644 10 U.S. government grants (excluding military) -4,709 -4,549 -5,413 -1,458 -1,100 -1,086 -1,770 -919 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,140 -5,078 -5,732 -807 -1,489 -2,502 -934 -1,060 12 Change in U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,089 -1,132 -794 -1,949 -787 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -16 -1,823 -1,371 -400 -241 -434 -297 -98 15 Reserve position in International Monetary Fund -1,667 -2,491 -2,552 -547 -814 -459 -732 -2,139 16 Foreign currencies -6,472 -861 -1,041 -142 -77 99 -920 1,450 17 Change in U.S. private assets abroad (increase, -)3 -72,757 -100,348 -107,348 -29,560 -38,313 -22,803 -16,670 -19,936 18 Bank-reported claims -46,838 -83,851 -109,346 -32,551 -38,653 -20,631 -17,511 -17,483 19 Nonbank-reported claims -3,174 -1,181 6,976 3,918 -277 998 2,337 n.a. 20 U.S. purchase of foreign securities, net -3,524 -5,636 -7,986 -581 -546 -3,331 -3,527 -2,032 21 U.S. direct investments abroad, net3 -19,221 -9,680 3,008 -346 1,163 161 2,031 -421 22 Change in foreign official assets in the United States (increase, +) 15,566 5,430 3,172 -3,061 1,930 2,642 1,661 -37 23 U.S. Treasury securities 9,708 4,983 5,759 -1,327 -2,094 4,834 4,346 3,166 24 Other U.S. government obligations 2,187 1,289 -670 -301 258 -71 -556 -568 25 Other U.S. government liabilities4 685 -28 504 75 459 -160 130 -390 26 Other U.S. liabilities reported by U.S. banks -159 -3,479 -2,054 -1,697 3,271 -1,911 -1,717 -1,898 27 Other foreign official assets5 3,145 2,665 -367 189 36 -50 -542 -347 28 Change in foreign private assets in the United States (increase, +)3 39,356 75,248 84,693 30,185 29,683 14,971 9,856 17,311 29 U.S. bank-reported liabilities 10,743 42,154 64,263 25,685 24,778 10,977 2,823 9,853 30 U.S. nonbank-reported liabilities 6,845 942 -3,104 -182 -2,517 -425 20 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,645 2,982 7,004 1,288 2,095 1,364 2,257 2,947 32 Foreign purchases of other U.S. securities, net 5,457 7,171 6,141 1,313 2,434 420 1,975 2,887 33 Foreign direct investments in the United States, net3 13,666 21,998 10,390 2,081 2,893 2,635 2,781 1,624 34 Allocation of SDRs 1,152 1,093 0 0 0 00 0 0 35 Discrepancy 29,556 24,238 41,390 3,768 7,887 1155,,008822 14,657 7,554 -729 881 --11,,119900 1,042 -340 37 Statistical discrepancy in recorded data before seasonal adjustment 29,556 24,238 41,390 4,497 7,006 1166,,227722 13,615 7,894 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,089 -1,132 -794 -1,949 -787 39 Foreign official assets in the United States (increase, +) 14,881 5,458 2,668 -3,136 1,471 2,802 1,531 353 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 12,769 13,581 7,420 5,190 3,024 368 -1,162 -1,442 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 756 680 644 93 125 267 158 42 1. Seasonal factors are no longer calculated for lines 12 through 41. 4. Primarily associated with military sales contracts and other transactions 2. Data are on an international accounts (IA) basis. Differs from the Census arranged with or through foreign official agencies. basis data, shown in table 3.11, for reasons of coverage and timing; military 5. Consists of investments in U.S. corporate stocks and in debt securities of exports 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 (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. 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 16,347 17,393 16,326 16,752 16,074 15,566 17,008 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 19,154 20,021 19,015 19,525 19,771 21,514 21,024 3 Trade balance -24,245 -27,628 -31,759 -2,808 -2,628 -2,689 -2,774 -3,697 -5,948 -4,016 NOTE. The data through 1981 in this table are reported by the Bureau of Census not covered in Census statistics, and (2) the exclusion of military sales (which are data of a free-alongside-ship (f.a.s.) value basis—that is, value at the port of combined with other military transactions and reported separately in the "service export. Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in account" in table 3.10, line 6). On the import side, additions are made for gold, the Census basis trade data; this adjustment has been made for all data shown in ship purchases, imports of electricity from Canada, and other transactions; the table. Beginning with 1982 data, the value of imports are on a customs military payments are excluded and shown separately as indicated above. valuation basis. The Census basis data differ from merchandise trade data shown in table 3.10, SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" U.S. International Transactions Summary, for reasons of coverage and timing. On (Department of Commerce, Bureau of the Census). the export side, the largest adjustments are: (1) the addition of exports to Canada 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1983 TTyyppee 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June July 1 Total 26,756 30,075 33,958 33,936 34,233 34,261 34,173 33,931 33,876 33,373 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,144 11,139 11,138 11,132 11,132 11,131 11,131 3 Special drawing rights2 3 2,610 4,095 5,250 5,267 5,284 5,229 5,192 5,525 5,478 5,496 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 8,035 8,594 9,293 9,284 9,424 9,413 9,475 5 Foreign currencies4 5 10,134 9,774 10,212 9,490 9,216 8,601 8,565 7,850 7,854 7,271 1. Gold held under earmark at Federal Reserve Banks for foreign and interna- 3. Includes allocations by the International Monetary Fund of SDRs as follows: tional 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, 3.13. Gold stock is valued at $42.22 per fine troy ounce. 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 transactions in SDRs. on a weighted average of exchange rates for the currencies of member countries. 4. 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 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in against receipt of foreign currencies in 1979 and 1980. 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 1983 AAsssseettss 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June July 1 Deposits 411 505 328 366 352 424 322 445 279 369 Assets held in custody 2 U.S. Treasury securities' 102,417 104,680 112,544 115,872 116,428 114,999 114,880 115,401 114,499 118,105 3 Earmarked gold2 14,965 14,804 14,716 14,717 14,752 14,726 14,723 14,727 14,724 14,727 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. NOTE. Excludes deposits and U.S. Treasury securities held for international Treasury securities payable in dollars and in foreign currencies. and regional organizations. Earmarked gold is gold held for foreign and interna- 2. Earmarked gold is valued at $42.22 per fine troy ounce. tional accounts and is not included in the gold stock of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • August 1983 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1982 1983 Nov. Dec. Jan. Feb. Mar.' Apr. May? All foreign countries 1 Total, all currencies 364,409 401,135 462,847 468,735' 469,365' 462,112' 458,201' 465,130 453,243 452,173 2 Claims on United States 32,302 28,460 63,743 90,849 91,767 89,695 87,525 93,718 87,404 91,888 3 Parent bank 25,929 20,202 43,267 62,476 61,629 59,694 58,500 63,312 57,934 62,576 4 Other 6,373 8,258 20,476 28,373 30,138 30,001 29,025 30,406 29,470 29,312 5 Claims on foreigners 317,330 354,960 378,954 357,451' 358,195' 352,906' 351,407' 352,416 347,876 342,240 6 Other branches of parent bank 79,662 77,019 87,821 91,948' 91,143' 89,488' 89,772' 89,083 88,693 86,488 7 Banks 123,420 146,448 150,763 133,360' 133,577' 131,028 129,169 132,108 127,290 123,945 8 Public borrowers 26,097 28,033 28,197 23,437' 24,090' 24,602' 24,734' 24,742 25,119 25,547 9 Nonbank foreigners 88,151 103,460 112,173 108,706 109,385 107,788 107,732 106,483 106,774 106,260 10 Other assets 14,777 17,715 20,150 20,435' 19,403' 19,511' 19,269' 18,996 17,963 18,045 11 Total payable in U.S. dollars 267,713 291,798 350,735 363,684' 361,645' 354,749' 350,562' 356,474 344,124 343,771 12 Claims on United States 31,171 27,191 62,142 88,976 90,047 88,001 85,901 91,281 85,127 89,532 13 Parent bank 25,632 19,896 42,721 61,662 60,973 58,926 57,799 62,379 57,298 61,777 14 Other 5,539 7,295 19,421 27,314 29,074 29,075 28,102 28,902 27,829 27,755 15 Claims on foreigners 229,120 255,391 276,937 261,893' 259,583' 254,926' 253,037' 253,585 248,465 243,838 16 Other branches of parent bank 61,525 58,541 69,398 74,785' 73,512 71,188 71,937' 70,768 69,788 67,839 17 Banks 96,261 117,342 122,110 106,681 106,275 103,596 100,797 103,472 98,603 95,961 18 Public borrowers 21,629 23,491 22,877 18,255' 18,374' 18,785' 18,962' 18,795 18,905 19,001 19 Nonbank foreigners 49,705 56,017 62,552 62,172 61,422 61,357 61,341 60,550 61,169 61,037 20 Other assets 7,422 9,216 11,656 12,815 12,015 11,822 11,624 11,608 10,532 10,401 United Kingdom 21 Total, all currencies 130,873 144,717 157,229 165,687 161,067 157,464 156,577 156,022 152,408 151,821 22 Claims on United States 11,117 7,509 11,823 28,677 27,354 27,175 26,423 26,259 25,139 24,847 23 Parent bank 9,338 5,275 7,885 24,278 23,017 22,539 21,962 21,912 20,657 20,456 24 Other 1,779 2,234 3,938 4,399 4,337 4,636 4,461 4,347 4,482 4,391 25 Claims on foreigners 115,123 131,142 138,888 130,666 127,734 124,354 124,214 123,993 121,727 121,187 26 Other branches of parent bank 34,291 34,760 41,367 38,319 37,000 34,959 35,437 36,171 32,973 33,361 27 Banks 51,343 58,741 56,315 51,414 50,767 49,497 48,580 48,976 48,301 47,623 28 Public borrowers 4,919 6,688 7,490 6,170 6,240 6,421 6,592 6,337 6,567 6,599 29 Nonbank foreigners 24,570 30,953 33,716 34,763 33,727 33,477 33,605 32,509 33,886 33,604 30 Other assets 4,633 6,066 6,518 6,344 5,979 5,935 5,940 5,770 5,542 5,787 31 Total payable in U.S. dollars 94,287 99,699 115,188 128,863 123,740 120,233 119,273 118,891 113,170 112,585 32 Claims on United States 10,746 7,116 11,246 28,093 26,761 26,581 25,829 25,597 24,374 24,044 33 Parent bank 9,297 5,229 7,721 24,035 22,756 22,250 21,700 21,626 20,354 20,092 34 Other 1,449 1,887 3,525 4,058 4,005 4,331 4,129 3,971 4,020 3,952 35 Claims on foreigners 81,294 89,723 99,850 95,870 92,228 89,137 88,973 88,797 84,981 84,779 36 Other branches of parent bank 28,928 28,268 35,439 33,154 31,648 29,380 29,918 30,589 27,131 27,579 37 Banks 36,760 42,073 40,703 38,310 36,717 35,616 34,499 34,442 33,228 32,801 38 Public borrowers 3,319 4,911 5,595 4,281 4,329 4,600 4,789 4,413 4,504 4,497 39 Nonbank foreigners 12,287 14,471 18,113 20,125 19,534 19,541 19,767 19,353 20,118 19,902 40 Other assets 2,247 2,860 4,092 4,900 4,751 4,515 4,471 4,497 3,815 3,762 Bahamas and Caymans 41 Total, all currencies 108,977 123,837 149,108 140,990 145,089 142,115 138,730 145,663 142,049 140,941 42 Claims on United States 19,124 17,751 46,546 57,081 59,402 57,302 56,225 62,576 57,559 62,526 43 Parent bank 15,196 12,631 31,643 34,022 34,653 32,958 32,839 37,937 34,113 39,011 44 Other 3,928 5,120 14,903 23,059 24,749 24,344 23,386 24,639 23,446 23,515 45 Claims on foreigners 86,718 101,926 98,057 79,230 81,387 80,722 78,527 79,150 80,817 74,759 46 Other branches of parent bank 9,689 13,342 12,951 18,066 18,720 20,091 19,730 17,512 22,153 18,537 47 Banks 43,189 54,861 55,151 41,070 42,636 40,770 39,101 42,347 39,607 37,531 48 Public borrowers 12,905 12,577 10,010 6,310 6,413 6,434 6,494 6,540 6,388 6,170 49 Nonbank foreigners 20,935 21,146 19,945 13,784 13,618 13,427 13,202 12,751 12,669 12,521 50 Other assets 3,135 4,160 4,505 4,679 4,300 4,091 3,978 3,937 3,673 3,656 51 Total payable in U.S. dollars 102,368 117,654 143,743 135,699 139,538 136,278 132,884 139,549 135,711 135,112 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.14 Continued 1982 1983 LLiiaabbiilliittyy aaccccoouunntt 11997799 11998800 11998811 Nov. Dec. Jan. Feb. Mar.' Apr. MayP All foreign countries 52 Total, all currencies 364,409 401,135 462,847 468,735' 469,365' 462,112' 458,201' 465,130 453,243 452,173 53 To United States 66,689 91,079 137,767 171,920' 178,877' 178,390' 176,243' 188,828 180,057 183,793 54 Parent bank 24,533 39,286 56,344 66,412' 75,520' 79,893' 77,446' 84,966 77,090 80,786 55 Other banks in United States 13,968 14,473 19,197 31,764 33,368' 32,797' 32,650 34,006 32,687 31,881 56 Nonbanks 28,188 37,275 62,226 73,744 69,989 65,700 66,147 69,856 70,280 71,126 57 To foreigners 283,510 295,411 305,630 276,454' 270,653' 265,278' 263,673' 258,524 255,229 250,791 58 Other branches of parent bank 77,640 75,773 86,396 91,364' 90,148' 88,993' 90,556^ 86,900 88,304 85,313 59 Banks 122,922 132,116 124,906 98,249' 96,739' 92,875' 90,244' 91,746 86,949 84,436 60 Official institutions 35,668 32,473 25,997 21,095 19,614 20,246 19,739 17,808 18,384 17,189 61 Nonbank foreigners 47,280 55,049 68,331 65,746' 64,152' 63,164' 63,134' 62,070 61,592 63,853 62 Other liabilities 14,210 14,690 19,450 20,361' 19,835' 18,444' 18,285' 17,778 17,957 17,589 63 Total payable in U.S. dollars 273,857 303,281 364,447 379,386' 378,936' 370,202' 367,606' 374,432 363,151 363,251 64 To United States 64,530 88,157 134,700 168,447 175,390' 174,765' 172,570' 185,330 176,638 180,017 65 Parent bank 23,403 37,528 54,492 64,119' 73,194 77,621' 75,113' 82,655 75,009 78,520 66 Other banks in United States 13,771 14,203 18,883 31,428 33,003' 32,273' 32,223 33,566 32,226 31,288 67 Nonbanks 27,356 36,426 61,325 72,900 69,193 64,871 65,234 69,109 69,403 70,209 68 To foreigners 201,514 206,883 217,602 199,025' 192,323' 185,298' 185,657' 179,704 177,088 174,154 69 Other branches of parent bank 60,551 58,172 69,299 74,686' 72,878' 71,10C 72,888' 68,999 69,937 66,972 70 Banks 80,691 87,497 79,594 58,829 57,355 52,225 51,234 52,156 48,428 47,325 71 Official institutions 29,048 24,697 20,288 16,774 15,055 15,940 15,381 13,536 13,801 12,631 72 Nonbank foreigners 31,224 36,517 48,421 48,736' 47,035' 46,033' 46,154' 45,013 44,922 47,226 73 Other liabilities 7,813 8,241 12,145 11,914 11,223 10,139 9,379 9,398 9,425 9,080 United Kingdom 74 Total, all currencies 130,873 144,717 157,229 165,687 161,067 157,464 156,577 156,022 152,408 151,821 75 To United States 20,986 21,785 38,022 54,003 53,954 52,650 51,927 55,309 52,883 53,603 76 Parent bank 3,104 4,225 5,444 10,597 13,091 14,287 14,080 14,616 14,343 13,907 77 Other banks in United States 7,693 5,716 7,502 12,374 12,205 12,343 12,198 13,172 12,119 12,773 78 Nonbanks 10,189 11,844 25,076 31,032 28,658 26,020 25,649 27,521 26,421 26,923 79 To foreigners 104,032 117,438 112,255 103,927 99,567 97,827 97,515 93,835 92,460 91,071 80 Other branches of parent bank 12,567 15,384 16,545 19,372 18,361 19,343 21,008 19,653 19,470 20,235 81 Banks 47,620 56,262 51,336 44,266 44,020 41,073 39,892 40,867 38,960 37,594 8? Official institutions 24,202 21,412 16,517 12,940 11,504 12,377 12,025 10,252 10,520 9,413 83 Nonbank foreigners 19,643 24,380 27,857 27,349 25,682 25,034 24,590 23,063 23,510 23,829 84 Other liabilities 5,855 5,494 6,952 7,757 7,546 6,987 7,135 6,878 7,065 7,147 85 Total payable in U.S. dollars 95,449 103,440 120,277 135,188 130,261 126,286 126,007 126,088 120,683 120,301 86 To United States 20,552 21,080 37,332 53,056 53,029 51,808 50,977 54,520 51,993 52,473 87 Parent bank 3,054 4,078 5,350 10,306 12,814 14,105 13,859 14,476 14,212 13,696 88 Other banks in United States 7,651 5,626 7,249 12,188 12,026 12,128 12,041 12,987 11,929 12,439 89 Nonbanks 9,847 11,376 24,733 30,562 28,189 25,575 25,077 27,057 25,852 26,338 90 To foreigners 72,397 79,636 79,034 77,982 73,477 71,000 71,994 68,309 65,485 64,621 91 Other branches of parent bank 8,446 10,474 12,048 15,310 14,300 15,081 16,709 14,918 14,815 15,636 9? Banks 29,424 35,388 32,298 29,092 28,810 25,177 25,563 26,395 23,821 22,960 93 Official institutions 20,192 17,024 13,612 11,198 9,668 10,657 10,121 8,419 8,474 7,306 94 Nonbank foreigners 14,335 16,750 21,076 22,382 20,699 20,085 19,601 18,577 18,375 18,719 95 Other liabilities 2,500 2,724 3,911 4,150 3,755 3,478 3,036 3,259 3,205 3,207 Bahamas and Caymans 96 Total, all currencies 108,977 123,837 149,108 140,990 145,089 142,115 138,730 145,663 142,049 140,941 97 To United States 37,719 59,666 85,759 98,525 104,384 104,398 102,519 111,424 105,685 108,789 98 Parent bank 15,267 28,181 39,451 41,950 47,040 50,441 47,633 55,620 48,050 51,087 99 Other banks in United States 5,204 7,379 10,474 16,805 18,466 17,561 17,328 17,328 17,451 16,143 100 Nonbanks 17,248 24,106 35,834 39,770 38,878 36,396 37,558 38,476 40,184 41,559 101 To foreigners 68,598 61,218 60,012 39,603 38,249 35,470 33,859 32,030 34,146 29,976 102 Other branches of parent bank 20,875 17,040 20,641 17,566 15,796 14,258 13,809 11,536 14,474 10,272 103 Banks 33,631 29,895 23,202 10,413 10,166 9,279 8,451 8,999 8,126 7,618 104 Official institutions 4,866 4,361 3,498 1,846 1,967 1,849 1,720 1,678 1,710 1,734 105 Nonbank foreigners 9,226 9,922 12,671 9,778 10,320 10,084 9,879 9,817 9,836 10,352 106 Other liabilities 2,660 2,953 3,337 2,862 2,456 2,247 2,352 2,209 2,218 2,176 107 Total payable in U.S. dollars 103,460 119,657 145,284 137,879 141,841 138,702 135,377 142,465 138,502 137,845 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • August 1983 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1982 1983 IItteemm 11998800 11998811 Dec. Jan. Feb. Mar. Apr.'' May June'' 1 Total1 164,578 170,109 172,780 175,163 172,915 173,166 173,586 175,289 175,311 By type 2 Liabilities reported by banks in the United States2 30,381 26,928 24,873 23,842 21,422 22,980 22,827 24,109 24,104 3 U.S. Treasury bills and certificates3 56,243 52,389 46,658 50,432 49,954 47,917 48,399 49,281 49,089 U.S. Treasury bonds and notes 4 Marketable 41,455 53,186 67,715 67,735 69,303 70,246 70,586 70,602 71,104 5 Nonmarketable4 14,654 11,791 8,750 8,750 7,950 7,950 7,950 7,950 7,950 6 U.S. securities other than U.S. Treasury securities5 21,845 25,815 24,784 24,404 • 24,286 24,055 23,824 23,347 23,064 By area 7 Western Europe1 81,592 65,891 61,501 62,525 62,103 61,734 62,178 63,235 63,733 8 Canada 1,562 2,403 2,070 2,430 2,754 2,942 2,770 3,613 3,741 9 Latin America and Caribbean 5,688 6,954 6,028 7,138 6,100 5,578 6,281 5,918 6,507 10 Asia 70,784 91,790 95,922 95,278 95,677 96,789 95,373 95,577 94,761 11 Africa 4,123 1,829 1,350 1,716 1,327 1,162 1,208 1,203 1,076 12 Other countries6 829 1,242 5,909 6,076 4,954 4,914 5,776 5,743 5,493 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, commer- agencies, and U.S. corporate stocks and bonds. cial paper, negotiable time certificates of deposit, and borrowings under repur- 6. Includes countries in Oceania and Eastern Europe. chase agreements. 3. Includes nonmarketable certificates of indebtedness (including those pay- NOTE. Based on Treasury Department data and on data reported to the able in foreign currencies through 1974) and Treasury bills issued to official Treasury Department by banks (including Federal Reserve Banks) and securities institutions of foreign countries. dealers in 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 1982 1983 IItteemm 11997799 11998800 11998811 June Sept. Dec. Mar.'' 1 Banks' own liabilities 1,918 3,748 3,523 4,513 4,575 4,751 5,072 2 Banks' own claims 2,419 4,206 4,980 5,895 6,337 7,689 8,101 3 Deposits 994 2,507 3,398 3,565 3,429 4,241 3,725 4 Other claims 1,425 1,699 1,582 2,329 2,908 3,448 4,376 5 Claims of banks' domestic customers' 580 962 971 921 506 676 637 1. Assets owned by customers of the reporting bank located in the United NOTE. Data on claims exclude foreign currencies held by U.S. monetary States that represent claims on foreigners held by reporting banks for the accounts authorities, 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 1982 1983 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997799 11998800 11998811AA Dec. Jan. Feb. Mar. Apr.' May June? 1 All foreigners 187,521 205,297 244,043 305,320 304,779 304,653 316,118' 308,359 316,413 319,196 2 Banks' own liabilities 117,196 124,791 163,738 225,379 219,361 219,666 234,318' 225,721 232,598 235,098 3 Demand deposits 23,303 23,462 19,628 16,017 16,089 17,423 16,495 15,606 16,981 17,291 4 Time deposits1 13,623 15,076 28,992 67,072 64,347 65,273 68,491 67,495 69,453 73,120 5 Other2 16,453 17,583 17,617 23,791 22,918 20,295 24,566 21,877 24,002 25,010 6 Own foreign offices3 63,817 68,670 97,500 118,499 116,006 116,676 124,765 120,743 122,163 119,677 7 Banks' custody liabilities4 70,325 80,506 80,305 79,941 85,419 84,987 81,800 82,638 83,815 84,098 8 U.S. Treasury bills and certificates5 48,573 57,595 55,316 55,614 62,137 61,904 58,748' 60,087 60,483 61,218 9 Other negotiable and readily transferable instruments6 19,396 20,079 19,019 20,625 19,352 19,205 18,830' 18,823 19,187 18,721 10 Other 2,356 2,832 5,970 3,702 3,930 3,877 4,222 3,728 4,146 4,159 11 Nonmonetary international and regional organizations7 2,356 2,344 2,721 4,597 6,611 5,969 3,945' 5,917 5,260 5,456 12 Banks' own liabilities 714 444 638 1,584 1,787 1,695 1,30c 2,542 2,925 3,048 13 Demand deposits 260 146 262 106 284 195 221 252 267 165 14 Time deposits1 151 85 58 1,339 1,333 1,367 913' 2,031 2,447 2,483 15 Other2 303 212 318 139 170 134 166 259 211 400 16 Banks' custody liabilities4 1,643 1,900 2,083 3,013 4,824 4,275 2,645 3,375 2,335 2,408 17 U.S. Treasury bills and certificates 102 254 541 1,621 3,603 3,153 1,501 2,230 1,280 1,538 18 Other negotiable and readily transferable instruments6 1,538 1,646 1,542 1,392 1,221 1,122 1,144 1,145 1,055 870 19 Other 2 0 0 0 0 0 0 0 0 0 20 Official institutions8 78,206 86,624 79,318 71,531 74,274 71,377 70,897 71,220 73,389 73,193 21 Banks'own liabilities 18,292 17,826 17,094 16,526 16,411 14,620 16,443 16,188 17,363 17,161 22 Demand deposits 4,671 3,771 2,564 1,981 2,168 2,063 2,287 2,322 2,104 2,198 23 Time deposits1 3,050 3,612 4,230 5,489 4,907 5,481 5,331 6,039 6,326 6,308 24 Other2 10,571 10,443 10,300 9,057 9,336 7,076 8,825 7,826 8,933 8,655 25 Banks' custody liabilities4 59,914 68,798 62,224 55,006 57,864 56,756 54,454 55,032 56,026 56,032 26 U.S. Treasury bills and certificates5 47,666 56,243 52,389 46,658 50,432 49,954 47,917 48,399 49,281 49,089 27 Other negotiable and readily transferable instruments6 12,196 12,501 9,787 8,319 7,396 6,769 6,512 6,618 6,724 6,926 28 Other 52 54 47 28 35 33 25 15 22 17 29 Banks' 88,316 96,415 136,030 185,097 178,460 180,891 192,702' 183,100 188,590 190,413 30 Banks' own liabilities 83,299 90,456 124,312 168,679 161,637 162,878 174,325' 164,647 169,152 170,978 31 Unaffiliated foreign banks 19,482 21,786 26,812 50,179 45,631 46,202 49,56(K 43,904 46,989 51,301 32 Demand deposits 13,285 14,188 11,614 8,733 8,186 9,627 8,264 7,601 8,832 9,107 33 Time deposits1 1,667 1,703 8,735 28,267 25,556 25,297 27,617' 24,329 25,118 27,751 34 Other2 4,530 5,895 6,462 13,179 11,889 11,278 13,679 11,974 13,039 14,443 35 Own foreign offices3 63,817 68,670 97,500 118,499 116,006 116,676 124,765 120,743 122,163 119,677 36 Banks' custody liabilities4 5,017 5,959 11,718 16,419 16,822 18,012 18,377 18,453 19,438 19,435 37 U.S. Treasury bills and certificates 422 623 1,687 5,809 6,292 6,791 7,122 7,475 7,824 8,392 38 Other negotiable and readily transferable instruments6 2,415 2,748 4,421 7,844 7,698 8,345 8,265' 8,041 8,333 7,758 39 Other 2,179 2,588 5,611 2,766 2,833 2,876 2,990 2,937 3,282 3,286 40 Other foreigners 18,642 19,914 25,974 44,095 45,434 46,416 48,573 48,122 49,173 50,134 41 Banks' own liabilities 14,891 16,065 21,694 38,591 39,526 40,473 42,250' 42,344 43,158 43,910 42 Demand deposits 5,087 5,356 5,189 5,197 5,452 5,539 5,724 5,430 5,777 5,820 43 Time deposits 8,755 9,676 15,969 31,977 32,551 33,128 34,631' 35,095 35,562 36,578 44 Other2 1,048 1,033 537 1,416 1,524 1,807 1,896 1,819 1,819 1,512 45 Banks' custody liabilities4 3,751 3,849 4,279 5,504 5,908 5,943 6,323 5,778 6,016 6,224 46 U.S. Treasury bills and certificates 382 474 699 1,525 1,810 2,006 2,207 1,983 2,098 2,200 47 Other negotiable and readily transferable instruments6 3,247 3,185 3,268 3,070 3,037 2,970 2,909 3,018 3,076 3,168 48 Other 123 190 312 908 1,062 968 1,207 776 842 856 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,984 10,745 10,747 14,296 13,367 11,611 11,383 11,604 11,555 11,587 1. Excludes negotiable time certificates of deposit, which are included in 6. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 2. Includes borrowing under repurchase agreements. 7. Principally the International Bank for Reconstruction and Development, and 3. U.S. banks: includes amounts due to own foreign branches and foreign the Inter-American and Asian Development Banks. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Foreign central banks and foreign central governments, and the Bank for regulatory agencies. Agencies, branches, and majority-owned subsidiaries of International Settlements. foreign banks: principally amounts due to head office or parent foreign bank, and 9. Excludes central banks, which are included in "Official institutions." foreign branches, agencies or wholly owned subsidiaries of head office or parent • Liabilities and claims of banks in the United States were increased, foreign bank. beginning in December 1981, by the shift from foreign branches to international 4. Financial claims on residents of the United States, other than long-term banking facilities in the United States of liabilities to, and claims on, foreign securities, held by or through reporting banks. residents. 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • August 1983 3.17 Continued 1982 1983 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA Dec. Jan. Feb. Mar. Apr.' May JunC 1 Total 187,521 205,297 244,043 305,320 304,779 304,653 316,118' 308,359 316,413 319,196 2 Foreign countries 185,164 202,953 241,321 300,723 298,168 298,683 312,173' 302,442 311,153 313,740 3 Europe 90,952 90,897 91,309 117,695 118,764 116,019 116,457' 111,233 115,896 117,914 4 Austria 413 523 596 512 467 513 604 576 574 634 5 Belgium-Luxembourg 2,375 4,019 4,117 2,517 2,270 2,295 2,726 2,800 2,605 2,830 6 Denmark 1,092 497 333 509 996 1,197 765 849 732 616 7 Finland 398 455 296 748 473 369 408 437 280 447 8 France 10,433 12,125 8,486 8,169 8,462 7,723 6,780 7,091 6,646 6,751 9 Germany 12,935 9,973 7,665 5,375 5,807 6,227 6,458 3,437 3,971 3,395 10 Greece 635 670 463 537 589 595 597 670 648 567 11 Italy 7,782 7,572 7,290 5,674 4,938 4,514 4,312 5,021 5,570 6,619 12 Netherlands 2,337 2,441 2,823 3,362 3,770 3,196 3,704 3,968 3,543 3,239 13 Norway 1,267 1,344 1,457 1,567 1,476 1,407 1,061 1,565 2,227 1,719 14 Portugal 557 374 354 388 398 370 363 346 426 350 15 Spain 1,259 1,500 916 1,405 1,316 1,524 1,640 1,484 1,621 1,613 16 Sweden 2,005 1,737 1,545 1,380 1,315 1,645 1,379 1,210 1,356 1,493 17 Switzerland 17,954 16,689 18,720 28,999 28,996 30,263 30,433 29,390 29,745 29,965 18 Turkey 120 242 518 296 190 251 254 231 248 194 19 United Kingdom 24,700 22,680 28,287 48,169 50,339 47,202 47,703 44,980 48,752 49,913 20 Yugoslavia 266 681 375 499 470 452 491 504 549 501 21 Other Western Europe1 4,070 6,939 6,526 6,965 6,033 5,898 6,365 6,215 6,023 6,521 22 U.S.S.R 52 68 49 50 47 41 40 44 53 71 23 Other Eastern Europe2 302 370 493 573 412 335 374 413 327 476 24 Canada 7,379 10,031 10,250 12,217 10,990 13,618 15,159 14,492 16,259 16,275 25 Latin America and Caribbean 49,686 53,170 85,159 112,916 110,576 111,105 119,895 117,708 118,046 119,369 26 Argentina 1,582 2,132 2,445 3,577 4,833 4,891 4,684 4,603 4,886 4,762 27 Bahamas 15,255 16,381 34,856 44,026 42,911 45,029 48,832 49,086 49,517 49,076 28 Bermuda 430 670 765 1,572 1,989 1,903 2,124 2,128 1,821 2,031 29 Brazil 1,005 1,216 1,568 2,010 1,916 2,010 1,948 2,474 2,443 2,723 30 British West Indies 11,138 12,766 17,794 26,372 24,630 23,963 27,520 23,889 22,938 23,764 31 Chile 468 460 664 1,626 1,341 1,280 1,084 1,196 1,311 1,356 32 Colombia 2,617 3,077 2,993 2,593 2,384 2,336 1,887 1,820 11,,886666 1,724 33 Cuba 13 6 9 9 10 10 9 12 88 13 34 Ecuador 425 371 434 453 472 499 575 534 657 580 35 Guatemala 414 367 479 670 682 669 675 666 704 705 36 Jamaica 76 97 87 126 115 103 134 107 108 130 37 Mexico 4,185 4,547 7,170 7,967 7,930 7,380 8,118 8,351 8,513 9,022 38 Netherlands Antilles 499 413 3,182 3,597 3,762 3,474 3,416 3,426 3,622 3,494 39 Panama 4,483 4,718 4,857 4,738 4,923 4,983 5,617 5,620 5,728 5,647 40 Peru 383 403 694 1,147 1,052 903 927 966 1,004 1,148 41 Uruguay 202 254 367 759 726 817 818 852 912 954 42 Venezuela 4,192 3,170 4,245 8,382 7,649 7,671 8,146 8,585 8,534 8,625 43 Other Latin America and Caribbean 2,318 2,123 2,548 3,291 3,251 3,185 3,381 3,394 3,473 3,614 44 Asia 33,005 42,420 50,005 48,679 4488,,119933 4499,,661144 5522,,552288'' 5500,,118811 5522,,110066 51,928 China 45 Mainland 49 49 158 203 220 196 208 187 158 208 46 Taiwan 1,393 1,662 2,082 2,716 3,139 3,515 3,535 3,600 3,764 3,722 47 Hong Kong 1,672 2,548 3,950 4,465 4,542 4,988 5,725 5,127 5,195 5,585 48 India 527 416 385 433 514 962 521 669 719 668 49 Indonesia 504 730 640 849 1,156 614 855 1,028 765 554 50 Israel 707 883 592 606 608 515 985 761 785 835 51 Japan 8,907 16,281 20,750 16,098 15,836 16,613 17,022 17,052 17,403 17,001 52 Korea 993 1,528 2,013 1,692 1,473 1,458 1,418 1,147 1,459 1,322 53 Philippines 795 919 874 770 680 787 718 712 783 818 54 Thailand 277 464 534 629 482 529 488 528 566 695 55 Middle-East oil-exporting countries3 15,300 14,453 13,174 13,433 12,332 11,672 13,159' 11,756 12,608 11,832 56 Other Asia 1,879 2,487 4,854 6,784 7,210 7,764 7,893 7,614 7,902 8,688 57 Africa 3,239 5,187 3,180 3,070 3,331 3,087 2,910 2,829 2,872 2,689 58 Egypt 475 485 360 398 500 416 533 466 513 461 59 Morocco 33 33 32 75 51 51 57 48 50 54 60 South Africa 184 288 420 277 276 317 281 299 358 355 61 Zaire 110 57 26 23 25 31 33 28 32 59 62 Oil-exporting countries4 1,635 3,540 1,395 1,280 1,603 1,333 975 1,071 866 745 63 Other Africa 804 783 946 1,016 877 939 1,031 916 1,054 1,015 64 Other countries 904 1,247 1,419 6,146 6,314 5,241 5,224 5,999 5,974 5,564 65 Australia 684 950 1,223 5,904 6,080 5,052 4,933 5,804 5,778 5,406 66 All other 220 297 196 243 235 190 291 195 196 158 67 Nonmonetary international and regional organizations 2,356 2,344 2,721 4,597 6,611 5,969 3,945' 5,917 5,260 5,456 68 International 1,238 1,157 1,661 3,705 5,769 5,186 3,182 5,194 4,540 4,747 69 Latin American regional 806 890 710 517 527 487 478 494 453 443 70 Other regional5 313 296 350 375 316 296 285' 229 267 266 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Asian, African, Middle Eastern, and European regional organizations, includes Eastern European countries not listed in line 23. except the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, and Romania. A Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-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 1982 1983 AArreeaa aanndd ccoouunnttrryy 11997799 11998800 11998811AA Dec. Jan. Feb. Mar. Apr.' May June? 1 133,943 172,592 251,082 353,733 357,333 358,695 372,603' 361,187 363,188 365,712 2 Foreign countries 133,906 172,514 251,026 353,665 357,260 358,618 372,534' 361,095 363,112 365,615 3 28,388 32,108 49,067 84,005 83,503 84,289 88,058' 84,325 83,388 84,340 4 284 236 121 216 232 226 255 307 284 306 Belgium-Luxembourg 1,339 1,621 2,851 5,115 4,730 5,363 5,700 5,350 5,478 5,652 6 Denmark 147 127 187 554 609 648 1,134 1,124 1,061 1,075 7 Finland 202 460 546 990 984 957 961 844 766 860 8 3,322 22,,995588 4,124 6,863 7,204 7,367 7,216 7,342 7,829 7,843 9 Germany 1,179 994488 938 1,860 1,407 1,740 1,810 1,273 1,187 1,409 10 Greece 154 256 333 452 576 632 652 628 607 572 11 Italy 1,631 3,364 5,240 7,498 7,544 7,005 7,139' 7,403 6,985 7,168 1? Netherlands 514 575 682 1,428 1,470 1,356 1,629 1,250 1,262 1,147 13 Norway 276 227 384 572 625 587 544 628 683 648 14 Portugal 330 331 529 943 843 834 820 797 815 755 15 Spain 1,051 993 2,100 3,730 3,699 3,223 3,120 3,004 3,059 3,158 16 Sweden 542 783 1,205 3,030 3,113 2,693 2,414 2,289 2,298 2,843 17 Switzerland 1,165 1,446 2,213 1,639 1,568 1,496 1,668 1,653 1,085 1,596 18 Turkey 149 145 424 560 527 567 595 608 578 570 19 United Kingdom 13,795 14,917 23,654 44,754 44,703 45,916 48,688' 46,072 45,652 44,859 20 Yugoslavia 611 853 1,224 1,418 1,382 1,399 1,393 1,432 1,481 1,458 71 Other Western Europe1 175 179 209 378 310 319 322 232 236 338 7,7 U.S.S.R 268 281 377 263 233 250 310 392 355 358 23 Other Eastern Europe2 1,254 1,410 1,725 1,741 1,745 1,709 1,690 1,697 1,684 1,726 24 Canada 4,143 4,810 9,164 14,216 14,865 15,583 16,477 15,087 16,540 16,344 75 Latin America and Caribbean 67,993 92,992 138,138 187,379 192,024 192,002 198,523' 195,821 197,834 195,087 76 Argentina 4,389 5,689 7,522 10,960 11,231 11,431 11,264 11,228 11,550 11,097 77 Bahamas 18,918 29,419 43,446 56,300 58,003 56,654 59,385' 57,177 58,900 58,551 78 Bermuda 496 218 346 603 582 536 500' 385 628 2,080 79 Brazil 7,713 10,496 16,914 23,204 23,036 23,377 23,551' 23,715 23,528 23,230 30 British West Indies 9,818 15,663 21,930 29,162 32,790 33,376 35,215' 34,985 33,163 31,408 31 Chile 1,441 1,951 3,690 5,560 5,229 5,302 5,209 5,131 5,568 5,130 3? Colombia 1,614 1,752 2,018 3,185 3,221 3,159 3,166' 3,155 3,484 3,575 33 Cuba 4 3 3 3 11 2 2 0 0 0 34 Ecuador 1,025 1,190 1,531 2,053 2,038 2,054 2,054 2,093 2,040 1,991 35 Guatemala3 134 137 124 124 129 119 84 77 90 90 36 Jamaica3 47 36 62 181 206 197 216 196 198 203 37 Mexico 9,099 12,595 22,409 29,449 29,422 30,234 31,251 31,726 31,906 32,222 38 Netherlands Antilles 248 821 1,076 814 815 906 970 1,036 885 495 39 Panama 6,041 4,974 6,779 10,133 10,040 9,296 9,797 8,956 9,633 8,647 40 Peru 652 890 1,218 2,332 2,299 2,273 2,301 2,330 2,414 2,592 41 Uruguay 105 137 157 681 687 684 707 859 824 818 47 Venezuela 4,657 5,438 7,069 10,682 10,225 10,283 10,615 10,559 10,749 10,790 43 Other Latin America and Caribbean 1,593 1,583 1,844 1,953 2,057 2,117 2,236 2,213 2,275 2,169 44 30,730 39,078 49,780 60,629 59,032 58,966 61,476 57,689 57,398 61,871 China 45 Mainland 35 195 107 210 198 195 195 239 219 167 46 Taiwan 1,821 2,469 2,461 2,285 2,223 1,975 1,860 1,786 1,613 1,747 47 Hong Kong 1,804 2,247 4,126 7,705 7,081 7,112 7,656 7,487 7,552 7,863 48 India 92 142 123 222 230 200 160 163 198 224 49 Indonesia 131 245 351 342 370 429 505 541 563 536 50 Israel 990 1,172 1,562 2,043 1,835 1,732 1,744 2,036 1,926 2,431 51 Japan 16,911 21,361 26,762 27,199 26,741 26,845 28,545 24,979 24,755 26,913 5? Korea 3,793 55,,669977 7,324 9,389 9,052 9,183 9,170 8,768 8,940 9,016 53 Philippines 737 998899 1,817 2,555 2,444 2,599 2,628 2,627 2,493 2,809 54 Thailand 933 876 564 643 649 651 625 741 707 788 55 Middle East oil-exporting countries4 1,548 1,432 1,575 3,087 3,428 3,403 3,829 3,947 4,024 4,396 56 Other Asia 1,934 2,252 3,009 4,948 4,781 4,643 4,557 4,375 4,410 4,982 57 Africa 1,797 2,377 3,503 5,350 5,608 5,504 5,483 5,698 5,538 5,644 58 Egypt 114 151 238 322 310 277 309 297 378 417 59 Morocco 103 223 284 347 342 359 375 382 441 463 60 South Africa 445 370 1,011 2,013 2,061 2,193 2,185 2,123 2,123 2,226 61 Zaire 144 94 112 57 57 54 52 104 47 46 67 Oil-exporting countries5 391 805 657 803 914 841 844 750 851 830 63 Other 600 734 1,201 1,807 1,924 1,781 1,717 2,041 1,699 1,662 64 Other countries 855 1,150 1,376 2,086 2,228 2,274 2,519 2,475 2,413 2,330 65 Australia 673 859 1,203 1,713 1,714 1,696 1,953 1,889 1,750 1,711 66 All other 182 290 172 373 514 578 566 586 663 619 67 Nonmonetary international and regional organizations6 36 78 56 68 73 77 69 92 77 96 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 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German "Other Western Europe." Democratic 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 • Liabilities and claims of banks in the United States were increased, United Arab Emirates (Trucial States). beginning 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 • August 1983 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 1982 1983 TTyyppee ooff ccllaaiimm 11997799 11998800 11998811AA Dec. Jan. Feb. Mar/ Apr/ May June'' 1 Total 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,000000055555551111111 333333399999993333333,,,,,,,666666644444442222222 444444411111110000000,,,,,,,888888855555559999999 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,000000088888882222222 333333355555553333333,,,,,,,777777733333333333333 357,333 358,695 333333377777772222222,,,,,,,666666600000003333333 361,187 363,188 365,712 44 33 OO FFoo ww rr nn eeii gg ffoo nn rr ee pp ii uu gg bb nn ll ii oo cc ff ff bb ii oo ccee rrrr ss oo 11 wweerrss 4444444 1111111 7777777 5555555 ,,,,,,, ,,,,,,, 4444444 9999999 2222222 3333333 8888888 7777777 6666666 2222222 5555555 0000000 ,,,,,,, ,,,,,,, 0000000 8888888 8888888 8888888 4444444 2222222 9999999 3333333 6666666 1111111 ,,,,,,, ,,,,,,, 6666666 3333333 4444444 0000000 7777777 2222222 1111111 4444444 2222222 4444444 7777777 ,,,,,,, ,,,,,,, 6666666 2222222 0000000 7777777 1111111 5555555 1 4 3 4 3 , , 3 5 6 8 0 9 1 4 3 5 4 , , 4 4 2 6 3 0 1111111 4444444 4444444 6666666 3333333 ,,,,,,, ,,,,,,, 9999999 6666666 3333333 8888888 5555555 4444444 1 4 3 7 5 , , 5 7 8 5 2 6 1 4 3 7 9 , , 7 1 6 6 7 6 1 4 3 8 7 , , 9 15 1 7 0 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,111111133333334444444 111111111111119999999,,,,,,,333333322222227777777 116,434 117,731 111111122222221111111,,,,,,,000000055555559999999 117,246 115,413 117,351 66 DDeeppoossiittss 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,000000011111112222222 44444443333333,,,,,,,000000011111112222222 42,160 44,133 44444448888888,,,,,,,666666666666665555555 44,481 43,724 44,809 77 OOtthheerr 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,111111122222223333333 77777776666666,,,,,,,333333311111115555555 74,274 73,598 77777772222222,,,,,,,333333399999994444444 72,765 71,689 72,542 88 AAllll ootthheerr ffoorreeiiggnneerrss 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999999999999999999 66666662222222,,,,,,,555555533333330000000 62,950 61,081 66666660000000,,,,,,,999999922222226666666 60,603 60,842 62,294 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 33333339999999,,,,,,,999999900000009999999 33333338888888,,,,,,,222222255555556666666 1100 DDeeppoossiittss 999999955555555555555 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,222222222222226666666 2222222,,,,,,,111111122222226666666 11 Negotiable and readily transferable instruments3 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,666666622222227777777 22222229999999,,,,,,,222222255555550000000 12 Outstanding collections and other claims 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 6666666,,,,,,,888888888888880000000 13 MEMO: Customer liability on acceptances 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,555555511111117777777 33333338888888,,,,,,,333333399999991111111 33333335555555,,,,,,,111111155555553333333 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 22,333 24,468 39,862 41,210 38,621 38,646 38,332 40,542 41,673 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Includes demand and time deposits and negotiable and nonnegotiable subsidiaries consolidated in "Consolidated Report of Condition" filed with bank certificates of deposit denominated in U.S. dollars issued by banks abroad. For regulatory agencies. Agencies, branches, and majority-owned subsidiaries of description of changes in data reported by nonbanks, see July 1979 BULLETIN, foreign banks: principally amounts due from head office or parent foreign bank, p. 550. and foreign branches, agencies, or wholly owned subsidiaries of head office or A Liabilities and claims of banks in the United States were increased, parent foreign bank. beginning in December 1981, by the shift from foreign branches to international 2. Assets owned by customers of the reporting bank located in the United banking facilities in the United States of liabilities to, and claims on, foreign States that represent claims on foreigners held by reporting banks for the account residents. of their 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 1982 1983 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11997799 11998800 11998811AA June Sept. Dec. Mar.P 1 Total 86,181 106,748 153,879 200,596 213,223 225,853 226,708 By borrower 2 Maturity of 1 year or less1 65,152 82,555 115,849 151,698 161,686 171,852 171,114 3 Foreign public borrowers 7,233 9,974 15,099 19,367 20,057 20,999 21,602 4 5 Ma A t l u l r o it t y h e o r f f o o v r e e r i g 1 n e y r e s a r1 5 21 7 , , 0 9 3 1 0 9 7 2 2 4 , , 5 1 8 9 1 3 1 3 0 8 0 , , 0 7 3 5 0 0 1 4 3 8 2 , , 8 3 9 3 8 1 1 5 4 1 1 , , 5 6 3 2 7 9 1 5 5 4 0 , , 0 8 0 5 1 2 1 5 4 5 9 , , 5 5 9 1 4 2 6 Foreign public borrowers 8,371 10,152 15,650 20,057 21,925 22,883 24,623 7 All other foreigners 12,659 14,041 22,380 28,841 29,612 31,118 30,971 By area Maturity of 1 year or less1 8 Europe 15,235 18,715 27,914 39,064 44,880 49,232 52,922 9 Canada 1,777 2,723 4,634 6,594 7,039 7,554 6,874 10 Latin America and Caribbean 24,928 32,034 48,489 68,046 71,686 72,922 73,520 11 Asia 21,641 26,686 31,413 33,518 33,297 37,226 32,561 1 1 2 3 Ma A A tu l f l r r o i i c t t y a h e o r f 2 over 1 year1 1, 4 0 9 7 3 7 1, 6 75 4 7 0 2,4 9 5 4 7 3 3 1 , , 2 2 5 1 9 7 3 1 , , 6 1 2 6 1 3 3 1 , , 6 2 9 2 2 5 3 1 , , 8 3 7 6 2 5 14 Europe 4,160 5,118 8,094 9,244 10,510 11,559 11,968 15 Canada 1,317 1,448 1,774 2,340 1,955 1,923 1,924 16 Latin America and Caribbean 12,814 15,075 25,089 32,919 34,020 35,121 35,696 17 Asia 1,911 1,865 1,907 2,479 3,088 3,168 3,531 1 1 9 8 A Af ll r o ic t a h er2 6 1 5 7 5 3 5 1 0 7 7 9 8 26 9 7 9 1, 6 2 2 9 2 5 1, 6 3 3 2 5 8 1,4 7 9 4 1 0 1, 9 4 9 8 5 0 1. Remaining time to maturity. A Liabilities and claims of banks in the United States were increased 2. Includes nonmonetary international and regional organizations. beginning 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

Bank-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 1981 1982 1983 AArreeaa oorr ccoouunnttrryy 11997799 11998800 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar.P 1 Total 303.9 352.0 372.1 382.9 399.8 414.4 417.7 432.6 434.5 436.3 433.6 2 G-10 countries and Switzerland 138.4 162.1 168.5 168.3 172.2 175.2 173.7 175.0 173.6 177.3 178.1 3 Belgium-Luxembourg 11.1 13.0 13.6 13.8 14.1 13.3 13.2 14.1 13.6 13.0 13.5 4 France II.7 14.1 14.5 14.7 16.0 15.3 15.9 16.4 15.7 16.7 16.5 5 Germany 12.2 12.1 13.3 12.1 12.7 12.9 12.5 12.7 12.2 12.6 12.9 6 Italy 6.4 8.2 7.7 8.4 8.6 9.6 9.0 9.0 9.7 10.3 10.2 7 Netherlands 4.8 4.4 4.6 4.2 3.7 4.0 4.0 4.1 3.8 3.6 4.3 8 Sweden 2.4 2.9 3.2 3.1 3.4 3.7 4.0 4.0 4.7 5.0 4.2 9 Switzerland 4.7 5.0 5.1 5.2 5.1 5.5 5.3 5.1 5.0 5.0 4.6 10 United Kingdom 56.4 67.4 68.5 67.0 68.8 69.9 69.8 68.5 69.0 71.0 72.0 11 Canada 6.3 8.4 8.9 10.8 11.8 10.9 11.6 11.3 10.8 11.0 10.7 12 Japan 22.4 26.5 29.1 28.9 28.0 30.1 28.4 29.8 29.0 29.0 29.2 13 Other developed countries 19.9 21.6 23.5 24.8 26.4 28.4 30.6 32.1 32.6 33.6 33.8 14 Austria 2.0 1.9 1.8 2.1 2.2 1.9 2.1 2.1 2.0 1.9 2.1 15 Denmark 2.2 2.3 2.4 2.3 2.5 2.3 2.5 2.6 2.5 2.4 3.3 16 Finland 1.2 1.4 1.4 1.3 1.4 1.7 1.6 1.6 1.8 2.2 2.1 17 Greece 2.4 2.8 2.7 3.0 2.9 2.8 2.8 2.6 2.5 2.9 2.8 18 Norway 2.3 2.6 2.8 2.8 3.0 3.1 3.2 3.2 3.4 3.3 3.3 19 Portugal .7 .6 .6 .8 1.0 1.1 1.2 1.5 1.6 1.5 1.4 20 Spain 3.5 4.4 5.5 5.7 5.8 6.7 7.2 7.3 7.7 7.5 7.0 21 Turkey 1.4 1.5 1.5 1.4 1.5 1.4 1.6 1.5 1.5 1.4 1.5 22 Other Western Europe 1.4 1.7 1.8 1.8 1.9 2.1 2.2 2.2 2.1 2.3 2.2 23 South Africa 1.3 1.1 1.5 1.9 2.5 2.8 3.3 3.5 3.6 3.7 3.6 24 Australia 1.3 1.3 1.5 1.7 1.9 2.5 3.0 4.0 4.0 4.4 4.6 25 OPEC countries2 22.9 22.7 21.7 22.2 23.5 24.5 25.1 26.1 27.0 27.4 28.4 26 Ecuador 1.7 2.1 2.0 2.0 2.1 2.2 2.3 2.4 2.3 2.2 2.2 27 Venezuela 8.7 9.1 8.3 8.8 9.2 9.7 9.7 9.8 10.1 10.6 10.3 28 Indonesia 1.9 1.8 2.1 2.1 2.5 2.5 2.7 2.8 2.9 3.2 3.5 29 Middle East countries 8.0 6.9 6.7 6.8 7.1 7.5 8.2 8.7 9.0 8.7 9.3 30 African countries 2.6 2.8 2.6 2.6 2.6 2.5 2.2 2.5 2.7 2.8 3.1 31 Non-OPEC developing countries 63.0 77.4 82.2 84.8 90.2 96.2 97.5 103.6 103.9 106.7 106.9' Latin America 32 Argentina 5.0 7.9 9.5 8.5 9.3 9.4 9.9 9.7 9.2 8.9 9.0 33 Brazil 15.2 16.2 17.0 17.5 17.7 19.1 19.7 21.3 22.4 22.8 22.9 34 Chile 2.5 3.7 4.0 4.8 5.5 5.8 6.0 6.4 6.2 6.3 6.0 35 Colombia 2.2 2.6 2.4 2.5 2.5 2.6 2.3 2.6 2.8 3.0 3.0 36 Mexico 12.0 15.9 17.0 18.2 20.0 21.6 22.9 25.1 24.9 24.4 24.5' 37 Peru 1.5 1.8 1.8 1.7 1.8 2.0 1.9 2.5 2.6 2.6 2.4 38 Other Latin America 3.7 3.9 4.7 3.8 4.2 4.1 4.1 4.0 4.3 4.0 4.3 Asia China 39 Mainland .1 .2 .2 .2 .2 .2 .2 .3 .2 .2 .2 40 Taiwan 3.4 4.2 4.4 4.6 5.1 5.1 5.1 4.9 5.3 5.1 41 India .2 .3 .3 .3 .3 .3 .5 .5 .6 .4 42 Israel 1.3 1.5 1.3 1.8 1.5 2.1 1.7 1.9 2.3 2.0 43 Korea (South) 5.4 7.1 7.7 8.8 8.6 9.4 8.6 9.3 10.8 10.8 44 Malaysia 1.0 1.1 1.2 1.4 1.4 1.7 1.7 1.8 2.1 2.5 45 Philippines 4.2 5.1 4.8 5.1 5.6 6.0 5.9 6.0 6.2 6.6 46 Thailand 1.5 1.6 1.6 1.5 1.4 1.5 1.4 1.3 1.3 1.6 1.6 47 Other Asia .5 .6 .5 .7 .8 1.0 1.2 1.1 1.3 1.1 1.3 Africa 48 Egypt .6 .8 .8 .7 1.0 1.1 1.3 1.3 1.3 1.2 1.1 49 Morocco .6 .7 .6 .5 .7 .7 .7 .7 .8 .7 .8 50 Zaire .2 .2 .2 .2 .2 .2 .2 .2 .1 .1 .1 51 Other Africa3 1.7 2.1 2.2 2.1 2.2 2.3 2.3 2.3 2.2 2.4 2.3 52 Eastern Europe 7.3 7.4 7.7 7.7 7.7 7.8 7.2 6.7 6.3 6.2 6.1 53 U.S.S.R .7 .4 .4 .5 .4 .6 .4 .4 .3 .3 .3 54 Yugoslavia 1.8 2.3 2.4 2.5 2.5 2.5 2.5 2.4 2.2 2.2 2.5 55 Other 4.8 4.6 4.8 4.8 4.7 4.7 4.3 3.9 3.8 3.7 3.3 56 Offshore banking centers 40.4 47.0 53.7 59.3 61.7 63.5 65.3 71.1 71.0 67.5 64.7' 57 Bahamas 13.7 13.7 15.5 17.9 21.3 18.9 19.9 23.6 20.8 18.6 16.8 58 Bermuda .8 .6 .7 .7 .8 .7 .7 .7 .8 .9 1.0 59 Cayman Islands and other British West Indies 9.4 10.6 11.9 12.6 12.1 12.4 12.0 12.2 13.4 13.2 11.5 60 Netherlands Antilles 1.2 2.1 2.3 2.4 2.2 3.2 3.2 3.0 3.3 3.3 3.2 61 Panama4 4.3 5.4 6.5 6.9 6.7 7.6 7.1 7.3 8.0 7.5 7.0' 62 Lebanon .2 .2 .2 .2 .2 .2 .2 .2 .1 .1 .1 63 Hong Kong 6.0 8.1 8.4 10.3 10.3 11.8 12.9 14.3 14.9 14.8 14.8 64 Singapore 4.5 5.9 7.3 8.1 8.0 8.7 9.3 9.8 9.8 9.1 10.3 65 Others5 .4 .3 .9 .3 .1 .1 .1 .1 .0 .0 .0 66 Miscellaneous and unallocated6 11.7 14.0 14.9 15.7 18.2 18.8 18.3 18.2 20.1 17.6 16.2 1. The banking offices covered by these data are the U.S. offices and foreign 2. In addition to the Organization of Petroleum Exporting Countries shown branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. individually, this group includes other members of OPEC (Algeria, Gabon, Iran, Offices not covered include (1) U.S. agencies and branches of foreign banks, and Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are well as Bahrain and Oman (not formally members of OPEC). adjusted to exclude the claims on foreign branches held by a U.S. office or another 3. Excludes Liberia. foreign branch of the same banking institution. The data in this table combine 4. Includes Canal Zone beginning December 1979. foreign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims 5. Foreign branch claims only. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 6. Includes New Zealand, Liberia, and international and regional organizaforeign banks and those constituting claims on own foreign branches). tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • August 1983 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Mar. June Sept. Dec. Mar.P 1 17,433 22,226 22,506' 22,185' 21,017' 21,491' 21,898 21,555 2 Payable in dollars 14,323 18,481 18,787' 19,418' 18,237' 18,375' 18,798 18,643 3 Payable in foreign currencies 3,110 3,745 3,719' 2,767' 2,780' 3,116 3,099 2,912 By type 4 Financial liabilities 7,523 11,330 12,143' 12,377' 10,063' 10,749' 10,364 10,294 5 Payable in dollars 5,223 8,528 9,475' 10,408' 8,104' 8,441' 8,289 8,330 6 Payable in foreign currencies 2,300 2,802 2,668' 1,969' 1,959' 2,308 2,075 1,964 7 Commercial liabilities 9,910 10,896 10,363 9,808' 10,955' 10,742' 11,533 11,261 8 Trade payables 4,591 4,993 4,720 4,035' 5,045' 4,536' 4,582 4,474 9 Advance receipts and other liabilities 5,320 5,903 5,643 5,773 5,910 6,206 6,951 6,787 10 Payable in dollars 9,100 9,953 9,312 9,010' 10,133' 99,,993344'' 10,509 10,313 11 Payable in foreign currencies 811 943 1,052 798 822 880088 1,024 948 By area or country Financial liabilities 12 Europe 4,665 6,481 6,816' 7,742' 5,944' 6,389 6,172 6,052 13 Belgium-Luxembourg 338 479 471 562' 518 494 502 407 14 France 175 327 709 917' 581 672 635 679 15 Germany 497 582 491 503 439 446 470 487 16 Netherlands 829 681 748 750' 517 759 702 684 17 Switzerland 170 354 715 707 661 670 673 620 18 United Kingdom 2,477 3,923 3,556' 4,195' 3,081' 3,212 3,061 3,045 19 Canada 532 964 958 914 758 702 685 677 20 Latin America and Caribbean 1,514 3,136 3,356 3,223' 2,805 2,969 2,683 2,666 21 Bahamas 404 964 1,279 1,095 1,003 933 876 803 22 Bermuda 81 1 7 6 7 14 14 18 23 Brazil 18 23 22 27 24 28 28 39 24 British West Indies 516 1,452 1,241 1,369' 1,044 981 992 991 25 Mexico 121 99 102 67 83 85 121 149 26 Venezuela 72 81 98 97 100 104 114 121 27 Asia 804 723 976' 472' 526' 658' 796 866 28 Japan 726 644 792 293 340 424 572 622 29 Middle East oil-exporting countries2 31 38 75 63 66 67 69 68 30 Africa 4 11 14' 13' 17' 17' 17 20 31 Oil-exporting countries3 1 1 0 0 0 0 0 0 32 All other4 4 15 24 12 11 13 12 13 Commercial liabilities 33 Europe 3,709 4,402 3,771 3,422 3,742 3,861 3,636 3,420 34 Belgium-Luxembourg 137 90 71 50 47 50 52 42 35 France 467 582 573 504 700 759 595 576 36 Germany 545 679 545 473 457 436 457 439 37 Netherlands 227 219 221 232 248 281 346 350 38 Switzerland 316 499 424 400 412 358 363 372 39 United Kingdom 1,080 1,209 880 824 850 904 850 660 40 Canada 924 888 897 897' 1,134' 1,197' 1,490 1,454 41 Latin America and Caribbean 1,325 1,300 1,044 817 1,418 1,220 991 1,032 42 Bahamas 69 8 2 22 20 6 16 4 43 Bermuda 32 75 67 71 102 48 89 117 44 Brazil 203 111 67 83 62 128 60 51 45 British West Indies 21 35 2 27 2 3 32 4 46 Mexico 257 367 340 210 727 484 379 354 47 Venezuela 301 319 276 194 219 269 148 181 48 Asia 2,991 3,034 3,285 3,407' 3,301' 3,207 4,062 4,278 49 Japan 583 802 1,094 1,090 1,064 1,134 1,150 1,158 50 Middle East oil-exporting countries2 1,014 890 910 998 958 821 1,513 1,732 51 Africa 728 817 703 661' 729' 663 704 492 52 Oil-exporting countries3 384 517 344 247 340 248 277 158 53 All other4 233 456 664 604 630 595 651 586 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 1982 1983 997799 11998800 11998811 Mar. June' Sept. Dec. Mar.P 31,299 34,482 35,709' 30,253' 30,559 29,519' 27,595 29,970 28,096 31,528 32,114' 27,619' 28,056 26,855' 24,976 27,253 3,203 2,955 3,595' 2,634' 2,502 2,664' 2,618 2,718 18,398 19,763 20,735' 17,743' 18,361 17,714 16,656 19,086 12,858 14,166 14,682' 12,725' 13,599 12,608 12,129 14,440 11,936 13,381 14,057 12,267 13,229 12,194 11,703 13,967 923 785 625' 457' 370 413 426 473 5,540 5,597 6,053' 5,018 4,762 5,106 4,527 4,646 3,714 3,914 3,599' 3,362 3,194 3,419 2,895 3,006 1,826 1,683 2,454 1,656 1,568 1,687 1,632 1,640 12,901 14,720 14,974' 12,51c 12,198 11,805' 10,939 10,885 12,185 13,960 13,965 11,493 11,069 10,709 9,929 9,681 716 759 1,009' 1,017' 1,129 1,097' 1,010 1,204 12,447 14,233 14,458' 11,989' 11,634 11,242' 10,378 10,279 454 487 516 520 564 564' 561 605 6,179 6,069 4,513' 4,503' 4,658 4,728 4,655 5,885 32 145 43 16 13 16 10 58 177 298 285 375 313 305 129 90 409 230 224 197 148 174 168 127 53 51 50 79 56 52 32 55 73 54 57 53 63 60 107 82 5,099 4,987 3,522' 3,546' 3,792 3,749 3,944 5,221 5,003 5,036 6,628 4,942 4,365 4,322 4,199 4,481 6,312 7,811 8,615 7,432 8,313 7,630 6,889 7,829 2,773 3,477 3,925 3,537 3,845 3,366 3,226 3,657 30 135 18 27 42 19 8 10 163 96 30 49 76 76 62 50 2,011 2,755 3,503 2,797 3,505 3,171 2,679 2,855 157 208 313 281 274 268 274 352 143 137 148 130 134 133 139 156 601 607 758' 668' 802 825 723 712 199 189 366 262' 327 247 178 233 16 20 37 36 33 30 15 18 258 208 173 164 156 165 158 153 49 26 46 43 41 50 48 45 44 32 48 34 66 44 31 25 4,922 5,544 5,359 4,381 4,273 4,164 3,755 3,558 202 233 234 246 211 178 150 140 727 1,129 776 698 636 646 473 486 593 599 559' 454' 394 427 356 414 298 318 303 227 297 278 347 307 272 354 427 354 384 258 339 227 901 929 969 1,062 905 1,035 793 748 859 914 967 943 713 666 635 674 2,879 3,766 3,479 2,925 2,787 2,772 2,513 2,645 21 21 12 80 30 19 21 30 197 108 223 212 225 154 259 172 645 861 668 417 423 481 258 401 16 34 12 23 10 7 12 22 708 1,102 1,022 762 750 869 767 864 343 410 424 396 383 373 351 286 3,451 3,522 3,949' 3,199' 3,385 3,117' 3,033 3,108 1,177 1,052 1,244 1,160 1,213 968 1,047 1,115 765 825 901 757 806 775 748 700 551 653 759' OS OO Type, and area or country 1 Total 2 Payable in dollars 3 Payable in foreign currencies By type 4 Financial claims 5 Deposits 6 Payable in dollars 7 Payable in foreign currencies 8 Other financial claims 9 Payable in dollars 10 Payable in foreign currencies 11 Commercial claims 12 Trade receivables 13 Advance payments and other claims.. 14 Payable in dollars 15 Payable in foreign currencies By area or country Financial claims 16 Europe 17 Belgium-Luxembourg 18 France 19 Germany 20 Netherlands 21 Switzerland 22 United Kingdom 23 Canada 24 Latin America and Caribbean 25 Bahamas 26 Bermuda 27 Brazil 28 British West Indies 29 Mexico 30 Venezuela 31 Asia 32 Japan 33 Middle East oil-exporting countries2 34 Africa 35 Oil-exporting countries3 36 All other4 Commercial claims 37 Europe 38 Belgium-Luxembourg 39 France 40 Germany 41 Netherlands 42 Switzerland 43 United Kingdom 44 Canada 45 Latin America and Caribbean 46 Bahamas 47 Bermuda 48 Brazil 49 British West Indies 50 Mexico 51 Venezuela 52 Asia 53 Japan 54 Middle East oil-exporting countries2 55 Africa 627 638 588 559 56 Oil-exporting countries3 130 153 152 143 138 148 140 131 57 All other4 240 321 461 463 413 448 415 341 1. For a description of the changes in the International Statistics tables, see 3. Comprises Algeria, Gabon, Libya, and Nigeria. July 1979 BULLETIN, p. 550. 4. Includes nonmonetary international and regional organizations. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • August 1983 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1982 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- June Dec. Jan. Feb. Mar. Apr/ May June U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,902 36,921 5,839 5,141 5,310 7,083 5,920 6,616 6,851 2 Foreign sales 34,856 37,948 33,033 4,868 4,376 4,349 6,155 5,344 6,362 6,448 3 Net purchases, or sales (-) 5,830 3,954 3,887 971 765 961 928 576 254 403 4 Foreign countries 5,803 3,869 3,801 946 755 940 902 524 252 428 5 Europe 3,662 2,596 3,569 672 586 890 976 626 296 195 6 France 900 -143 121 43 47 52 8 29 -28 14 7 Germany -22 333 725 138 84 137 226 222 86 -31 8 Netherlands 42 -60 -92 25 2 8 41 -5 -81 -57 9 Switzerland 288 -529 1,270 226 211 223 102 278 269 186 10 United Kingdom 2,235 3,129 1,532 242 183 442 576 127 116 88 11 Canada 783 221 611 154 90 61 147 122 92 98 12 Latin America and Caribbean -30 304 265 39 -5 83 -23 119 63 27 13 Middle East1 1,140 368 -586 -153 -57 -13 -57 -302 -192 36 14 Other Asia 287 246 -159 210 118 -91 -210 -44 0 68 15 Africa 7 2 29 3 6 4 8 8 3 1 16 Other countries -46 131 72 22 18 6 60 -4 -10 2 17 Nonmonetary international and regional organizations 27 85 86 25 10 21 26 52 2 -25 BONDS2 18 Foreign purchases 17,304 21,631 12,486 2,099 1,933 1,885 2,312 2,318 2,458 1,581 19 Foreign sales 12,252 20,480 12,721 2,457 2,278 1,877 2,448 2,067 2,289 1,763 20 Net purchases, or sales (-) 5,052 1,151 -234 -358 -345 8 -136 251 170 -182 21 Foreign countries 4,991 1,179 -188 -348 -343 33 -153 265 193 -184 22 Europe 1,371 1,848 22 -158 -189 -148 -266 261 474 -110 23 France 11 295 -38 146 -21 -2 -22 7 7 -7 24 Germany 848 2,116 116 43 -96 -35 127 47 85 -12 25 Netherlands 70 28 27 -1 16 0 3 1 12 -4 26 Switzerland 108 161 514 44 29 62 -2 209 188 28 27 United Kingdom 196 -903 -220 -461 -105 -90 -182 -103 141 119 28 Canada -12 25 41 -2 11 15 21 -18 22 -10 2 3 9 0 M La i t d i d n l e A E m a e s r t i 1 c a and Caribbean 3,4 1 6 3 5 2 -8 1 2 6 1 0 -67 4 4 2 -1 - 7 6 7 -21 2 1 3 8 1 6 1 32 1 - - 5 3 0 -37 1 8 0 -153 0 31 Other Asia 44 -23 322 -5 23 72 59 60 62 47 32 Africa -1 -19 2 0 0 -1 0 -5 1 7 33 Other countries -7 7 57 -1 0 0 0 21 2 35 34 Nonmonetary international and regional organizations 61 -28 -46 -10 -2 -25 17 -14 -24 2 Foreign securities 35 Stocks, net purchases, or sales (-) -247 -1,340 -2,830 -272 -320 -226 -447 -548 -641 -648 36 Foreign purchases 9,339 7,170 6,655 927 1,032 1,042 1,187 971 1,079 1,344 37 Foreign sales 9,586 8,511 9,486 1,199 1,352 1,268 1,634 1,519 1,720 1,993 38 Bonds, net purchases, or sales (-) -5,460 -6,610 -2,197 -417 22 -278 -556 -686 -837 138 39 Foreign purchases 17,553 29,900 17,442 2,962 2,881 3,526 2,772 2,396 2,655 3,211 40 Foreign sales 23,013 36,510 19,639 3,379 2,859 3,804 3,328 3,083 3,492 3,073 41 Net purchases, or sales (—), of stocks and bonds .... -5,707 -7,950 -5,028 -689 -298 -504 -1,003 -1,234 -1,478 -510 42 Foreign countries -4,694 -6,778 -4,522 -736 -272 -817 -714 -1,212 -972 -535 43 Europe -728 -2,436 -3,493 -555 -307 -687 -606R -672 -632 -590 44 Canada -3,697 -2,364 -1,176 -29 -20 -449 13 -438 -287 5 45 Latin America and Caribbean 69 246 851 29 258 345 -24 88 243 -59 46 Asia -367 -1,851 -1,089 -195 -192 -37 -144' -221 -309 -185 47 Africa -55 -9 88 4 -9 21 30 25 9 13 48 Other countries 84 -364 295 10 -2 -10 16 7 4 228800 49 Nonmonetary international and regional organizations -1,012 -1,172 -505 47 -26 312 -289 -22 -506 26 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 2. Includes state and local government securities, and securities of U.S. Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). government 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 1983 1982 1983 Country or area 1981 1982 J J a un n e - Dec. Jan. Feb. Mar. Apr/ May June? Holdings (end of period)1 1 Estimated total2 70,249 85,169 85,169 85,458 86,057 88,675 87,463 89,400 90,972 2 Foreign countries2 64,565 80,586 80,586 80,854 82,098 83,046 84,001 84,244 84,805 3 Europe2 24,012 29,274 29,274 29,855 31,039 32,364 33,511 33,557 33,593 4 Belgium-Luxembourg 543 447 447 716 -87 -332 -107 -93 -84 5 Germany2 11,861 14,841 14,841 15,151 16,650 17,560 17,798 16,953 16,876 6 Netherlands 1,991 2,754 2,754 2,839 3,011 3,194 3,230 3,255 3,251 7 Sweden 643 667 667 668 681 656 656 670 655 8 Switzerland2 846 1,540 1,540 1,013 1,039 1,044 1,070 914 877 9 United Kingdom 6,709 6,549 6,549 6,721 6,941 7,478 7,719 8,045 8,234 10 Other Western Europe 1,419 2,476 2,476 2,748 2,804 2,764 3,146 3,813 3,786 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 514 602 602 649 639 724 696 863 972 13 Latin America and Caribbean 736 1,076 1,076 1,067 1,050 951 932 1,039 965 14 Venezuela 286 188 188 190 74 77 72 72 72 15 Other Latin America and Caribbean 319 656 656 720 792 690 676 776 698 16 Netherlands Antilles 131 232 232 156 185 184 184 192 196 17 Asia 38,671 49,502 49,502 49,146 49,256 48,897 48,743 48,664 49,146 18 Japan 10,780 11,578 11,578 11,655 11,707 11,736 11,848 12,120 12,582 19 Africa 631 77 77 77 80 80 80 79 79 20 All other 2 55 55 60 34 31 39 42 50 21 Nonmonetary international and regional organizations 5,684 4,583 4,583 4,604 3,959 5,629 3,462 5,156 6,167 22 International 5,638 4,186 4,186 4,165 3,405 4,966 2,969 4,514 5,372 23 Latin American regional 1 6 6 6 6 6 6 6 6 Transactions (net purchases, or sales ( -) during period) 24 Total2 12,700 14,920 5,803 502 289 599 2,618 -1,212 1,937 1,572 25 Foreign countries2 11,604 16,021 4,219 1,139 268 1,245 948 955 243 561 26 Official institutions 11,730 14,529 3,389 1,866 20 1,567 962r 321 17 502 27 Other foreign2 -127 1,487 828 -727 248 -323 — 14r 633 225 59 28 Nonmonetary international and regional organizations 1,096 -1,096 1,585 -637 21 -645 1,670 -2,167 1,695 1,011 MEMO: Oil-exporting countries 29 Middle East3 11,156 7,534 -1,721 303 121 -233 -691 -115 -566 -237 30 Africa4 -289 -552 -1 0 0 0 0 0 -1 0 1. Estimated official and private holdings of marketable U.S. Treasury securi- 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to ties 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 United Arab Emirates (Trucial States). foreign countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on July 31, 1983 Rate on July 31, 1983 Rate on July 31, 1983 CCoouunnttrryy CCoouunnttrryy CCoouunnttrryy Per- Month Per- Month Per- Month cent effective cent effective cent effective 333333......777777555555 MMMMMMaaaaaarrrrrr...... 111111999999888888333333 111111222222......222222555555 JJJJJJuuuuuunnnnnneeeeee 111111999999888888333333 888...000 JJJuuunnneee 111999777999 999999......000000 JJJJJJuuuuuunnnnnneeeeee 111111999999888888333333 GGeerrmmaannyy,, FFeedd.. RReepp.. ooff ...... 444444......000000 MMMMMMaaaaaarrrrrr...... 111111999999888888333333 444...000 MMMaaarrr... 111999888333 444444999999......000000 MMMMMMaaaaaarrrrrr...... 111111999999888888111111 IIttaallyy 111111777777......000000 AAAAAApppppprrrrrr...... 111111999999888888333333 999999......444444999999 JJJJJJuuuuuullllllyyyyyy 111111999999888888333333 555555......555555 DDDDDDeeeeeecccccc...... 111111999999888888111111 111333...000 SSSeeepppttt... 111999888222 777777......555555 AAAAAApppppprrrrrr...... 111111999999888888333333 444444......555555 MMMMMMaaaaaayyyyyy 111111999999888888333333 1. As of the end of February 1981, the rate is that at which the Bank of France or makes advances against eligible commercial paper and/or government commerdiscounts Treasury bills for 7 to 10 days. cial banks or brokers. For countries with more than one rate applicable to such 2. Minimum lending rate suspended as of Aug. 20, 1981. discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion of its credit operations. NOTE. Rates shown are mainly those at which the central bank either discounts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • August 1983 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 CCoouunnttrryy,, oorr ttyyppee 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June July 1 Eurodollars 14.00 16.79 12.24 8.97 9.14 9.25 9.23 8.96 9.66 10.00 2 United Kingdom 16.59 13.86 12.21 11.04 11.29 10.92 10.21 10.18 9.91 9.84 3 Canada 13.12 18.84 14.38 9.87 9.69 9.36 9.39 9.30 9.41 9.42 4 Germany 9.45 12.05 8.81 5.78 5.79 5.40 5.16 5.27 5.52 5.54 5 Switzerland 5.79 9.15 5.04 2.78 2.95 3.64 4.20 4.48 4.98 4.77 6 Netherlands 10.60 11.52 8.26 4.97 4.82 4.34 5.19 5.65 5.81 5.58 7 France 12.18 15.28 14.61 12.55 12.88 12.64 12.12 12.51 12.59 12.33 8 Italy 17.50 19.98 19.99 18.95 19.04 19.19 18.20 17.75 17.72 17.50 9 Belgium 14.06 15.28 14.10 12.25 12.25 13.32 11.05 10.04 9.73 9.08 10 Japan 11.45 7.58 6.84 6.47 6.64 6.72 6.34 6.26r 6.46 6.47 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 1983 CCoouunnttrryy//ccuurrrreennccyy 11998800 11998811 11998822 Feb. Mar. Apr. May June July 1 Argentina/peso n.a. n.a. 20985.00 50239.47 62386.95 66868.56 71100.94 8.08 8.85 2 Australia/dollar1 114.00 114.95 101.65 96.62 88.39 86.76 87.85 87.72 87.54 3 Austria/schilling 12.945 15.948 17.060 17.076 16.940 17.176 17.368 17.974 18.208 4 Belgium/franc 29.237 37.194 45.780 47.739 47.519 48.577 49.239 50.928 51.862 5 Brazil/cruzeiro n.a. 92.374 179.22 309.01 401.30 434.77 465.65 517.28 571.73 6 Canada/dollar 1.1693 1.1990 1.2344 1.2277 1.2263 1.2325 1.2292 1.2323 1.2323 7 Chile/peso n.a. n.a. 51.118 76.863 76.378 76.028 75.405 77.500 78.987 8 China, P.R./yuan n.a. 1.7031 1.8978 1.9653 1.9834 1.9938 1.9895 1.9949 1.9966 9 Colombia/peso n.a. n.a. 64.071 71.751 73.179 74.751 76.153 77.380 78.997 10 Denmark/krone 5.6345 7.1350 8.3443 8.5811 8.6223 8.6663 8.8003 9.1287 9.3142 11 Finland/markka 3.7206 4.3128 4.8086 5.3907 5.4266 5.4342 5.4361 5.5351 5.5863 12 France/franc 4.2250 5.4396 6.5793 6.8855 7.0204 7.3148 7.4163 7.6621 7.7878 13 Germany/deutsche mark 1.8175 2.2631 2.428 2.4280 2.4110 2.4397 2.4665 2.5490 2.5914 14 Greece/drachma n.a. n.a. 66.872 83.621 83.897 84.037 84.105 84.486 84.677 15 Hong Kong/dollar n.a. 5.5678 6.0697 6.6060 6.6536 6.7868 6.9667 7.2822 7.1678 16 India/rupee 7.8866 8.6807 9.4846 9.9184 9.9652 9.9824 9.9895 10.049 10.0875 17 Indonesia/rupiah n.a. n.a. 660.43 700.01 714.72 970.81 968.83 973.00 978.57 18 Iran/rial n.a. 79.324 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 19 Ireland/pound1 205.77 161.32 142.05 136.81 134.79 129.53 128.11 123.81 121.87 20 Israel/shekel n.a. n.a. 24.407 36.986 38.867 40.951 43.427 46.138 49.614 21 Italy Aira 856.20 1138.60 1354.00 1399.78 1429.72 1451.88 1467.76 1510.98 1533.41 22 Japan/yen 226.63 220.63 249.06 236.12 238.25 237.75 234.76 240.03 240.52 23 Malaysia/ringgit 2.1767 2.3048 2.3395 2.2757 2.2898 2.3063 2.3009 2.3244 2.3319 24 Mexico/peso 22.968 24.547 72.990 157.81 161.78 153.77 150.27 149.02 149.36 25 Netherlands/guilder 1.9875 2.4998 2.6719 2.6779 2.6834 2.7486 2.7737 2.8557 2.8985 26 New Zealand/dollar1 97.34 86.848 75.101 71.895 66.642 65.726 66.246 65.659 65.383 27 Norway/krone 4.9381 5.7430 6.4567 7.1171 7.1852 7.1460 7.1154 7.2678 7.3280 28 Peru/sol n.a. n.a. 694.59 1087.43 1160.19 1284.37 1390.60 1514.46 1645.99 29 Philippines/peso n.a. 7.8113 8.5324 9.4488 9.5896 9.8449 10.015 10.393 11.050 30 Portugal/escudo 50.082 61.739 80.101 93.771 95.867 99.055 99.521 107.39 119.03 31 Singapore/dollar n.a. 2.1053 2.1406 2.0758 2.0854 2.1010 2.0920 2.1198 2.1294 32 South Africa/rand1 128.54 114.77 92.297 91.04 91.64 91.42 92.31 91.65 91.19 33 South Korea/won n.a. n.a. 731.93 752.19 757.94 765.29 767.96 775.82 779.88 34 Spain/peseta 71.758 92.396 110.09 129.886 133.498 135.99 137.76 143.29 147.973 35 Sri Lanka/rupee 16.167 18.967 20.756 22.355 22.982 22.971 22.970 23.050 24.082 36 Sweden/krona 4.2309 5.0659 6.2838 7.4385 7.4882 7.4941 7.4978 7.6351 7.6936 37 Switzerland/franc 1.6772 1.9674 2.0327 2.0180 2.0663 2.0587 2.0572 2.1123 2.1184 38 Thailand/baht n.a. 21.731 23.014 22.999 22.991 22.990 22.988 22.990 22.990 39 United Kingdom/pound1 232.58 202.43 174.80 153.29 149.00 153.61 157.22 154.80 152.73 40 Venezuela/bolivar n.a. 4.2781 4.2981 4.3101 7.9500 9.0429 10.233 11.213 12.595 MEMO: United States/dollar2 87.39 102.94 116.57 119.70 120.71 121.82 122.05 125.16 126.62 1. Value in U.S. cents. description and back data, see "Index of the Weighted-Average Exchange Value 2. Index of weighted-average exchange value of U.S. dollar against currencies of the U.S. Dollar: Revision" on p. 700 of the August 1978 BULLETIN. of other G-10 countries plus Switzerland. March 1973 = 100. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For NOTE. Averages of certified noon buying rates in New York for cable tranfers. 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 IPCs Individuals, partnerships, and corporations about half of the 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 1983 A76 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, June 30, 1982 October 1982 A70 Assets and liabilities of commercial banks, September 30, 1982 January 1983 A70 Assets and liabilities of commercial banks, December 31, 1982 April 1983 A70 Assets and liabilities of commercial banks, March 31, 1983 August 1983 A70 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1982 October 1982 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1982 .... January 1983 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1982 .... April 1983 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1983 August 1983 A76 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1983 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; March 31, 1983 Millions of dollars Banks with foreign offices2 BBaannkkss wwiitthhoouutt Insured ffoorreeiiggnn Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ooffffiicceess 1 Total assets 1,752,526 1,270,778 383,859 953,961 481,748 2 Cash and due from depository institutions 289,028 231,906 124,122 107,784 57,122 3 Currency and coin (U.S. and foreign) 13,540 7,923 238 7,685 5,617 4 5 B B a a l l a a n n c c e e s s w w i i t t h h o F t e h d e e r r a c l e n R t e ra s l e r b v a e n k B s a nks 21 3, , 4 3 6 6 8 8 1 3 6 , , 4 2 6 4 8 2 3,1 1 7 7 5 9 16,0 2 6 9 3 3 5,1 ( 246 ) 6 Demand balances with commercial banks in United States 18,311 7,419 238 7,181 10,892 7 All other balances with depository institutions in United States and with banks in foreign countries 165,180 142,339 119,034 23,305 22,841 8 Time and savings balances with commercial banks in United States 22,655 13,088 8,538 4,550 9,567 9 Balances with other depository institutions in United States 817 593 465 128 225 1 1 1 0 1 2 Ba F O la o t n h re c e i e r g s n b w a b n i r t k h a s n b c in a h n e f k s o s r o e i f i n g o n f t o h c r e o e r i u g U n n t . r S c ie o . s u b n a t n ri k e s s 141, ( ( 704 4 8 ) ) 1 1 2 2 0 0 8 8 , , , 4 6 1 8 5 7 5 8 3 1 9 1 1 5 0 4 , , , 0 0 9 3 3 9 1 5 6 1 1 5 8 3 , , , 4 6 1 8 2 3 9 8 9 13, ( ( 04 4 49 ) ) 13 Cash items in process of collection 67,161 54,514 1,258 53,256 12,647 14 Total securities, loans, and lease financing receivables 1,332,648 929,781 211,053 718,728 402,867 15 Total securities, book value 269,294 143,543 11,369 132,173 125,751 16 U.S. Treasury 87,963 41,105 211 40,894 46,858 17 Obligations of other U.S. government agencies and corporations 41,238 16,350 23 16,328 24,888 18 Obligations of states and political subdivisions in United States 106,580 57,415 605 56,810 49,165 19 All other securities 33,513 28,673 10,531 18,142 4,840 20 Other bonds, notes, and debentures 14,045 10,536 8,138 2,398 3,509 21 Federal Reserve and corporate stock 1,971 1,433 148 1,284 539 22 Trading account securities 17,497 16,705 2,245 14,460 793 23 Federal funds sold and securities purchased under agreements to resell 69,216 38,212 599 37,613 31,004 24 Total loans, gross 1,003,222 749,484 198,442 551,042 253,738 25 LESS: Unearned income on loans 13,480 6,937 1,733 5,204 6,543 26 Allowance for possible loan loss 11,379 8,321 361 7,960 3,058 27 EQUALS: Loans, net 978,363 734,226 196,348 537,878 244,137 Total loans, gross, by category 2 2 3 3 3 3 3 3 3 3 3 8 9 0 1 2 3 5 6 7 8 4 Re C S S S al e e e o M c 1 c c n e u u - u s s u F F C C r r t r t t o e e l r e a H H o o t u d d d t i n n e 4 A f A c a v v - b b t b - - l f m i e e y y y o i a i o n n n n m i a n f l r s t t s n n y a i i e i u u o o o s a l r s r r y n m n n n i e e d f d a a d d l a e l l a r n l n o m a t d r n i a d n V l o d A p n e r - r v o g e e p s u l e i a o d r r p t e a i n m n e t s t e i e a n e l t d p roperties 232,3 ( ( ( < ( ( ( ( ( ( 5 4 4 4 4 4 4 4 4 4 4 6 ) ) ) ) ) ) ) ) ) ) 142, ( ( ( 1 ( ( ( ( ( ( ( 1 4 4 4 4 4 4 4 4 4 4 8 ) ) ) ) ) > ) ) ) ) 8,3 ( ( ( ( ( ( ( ( ( ( 7 4 4 4 4 4 4 4 4 4 4 6 ) ) ) ) ) ) ) ) ) ) 1 6 6 3 6 2 3 9 5 4 5 1 3 3 3 7 , , , , , , , , , 6 7 2 5 7 6 9 4 6 8 2 4 9 9 5 8 5 0 7 9 2 4 2 0 1 3 9 8 1 2 8 7 3 9 4 4 4 2 1 0 9 7 2 2 4 2 7 1 1 , , , , , , , , , , 2 5 0 3 3 5 6 9 4 2 1 3 7 5 8 7 1 5 7 7 3 2 8 4 7 8 8 7 3 8 8 3 9 39 Loans to financial institutions 102,214 94,651 33,016 61,635 7,563 40 REITs and mortgage companies in United States 5,239 4,578 45 4,533 661 '4 4 4 1 2 3 Co O U m t . m h S e . e r r b c c r i o a a n m l c b m h a e e n s r k c s a i a n i l d n b a U a g n n e k i n t s e c d ie s S t o a f t e fo s reign banks 15, ( ( 82 4 44 ) ) 1 5 5 1 , , , 6 3 0 9 4 4 7 6 2 7 5 2 9 5 3 1 5 6 1 5 5 0 , , , 1 1 2 4 1 5 2 0 2 4,7 ( ( 8 4 42 ) ) 4 4 4 5 4 6 Ba F O n o k th r s e e i i r g n n f o b r r e a i n g c n h c e o s u o n f t r o ie th s er U.S. banks 48,8 ( ( 04 4 2 ) ) 4 4 8 7 , , 1 4 7 7 1 6 5 5 0 2 2 4 3 , , 2 9 3 7 6 1 8 7 1 2 2 3 3 , , 8 4 4 9 0 9 7 4 3 ( ( 624 4 7 ) ) 47 Finance companies in United States 11,276 10,851 356 10,495 425 48 Other financial institutions 21,073 20,005 7,546 12,459 1,068 49 Loans for purchasing or carrying securities 14,519 12,503 2,077 10,426 2,016 50 Brokers and dealers in securities 9,513 9,081 1,492 7,589 433 51 Other 5,006 3,422 585 2,837 1,583 52 Loans to finance agricultural production and other loans to farmers 12,694 7,249 752 6,4% 5,445 5 5 5 3 4 5 Co U N m . o m S n . e -U r a c d . i S d al . r e a a s n d s d e d e r i e s n s d ( s d u e o e s m t s r i i ( a c d l i o le l m o ) a ic n i s l e) 447,1 ( ( 44 4 4 ) ) 3 2 1 6 3 3 6 1 4 , , , 1 6 4 5 6 8 0 4 6 1 1 2 0 1 4 7 7 , , , 9 2 6 9 2 2 9 1 2 2 21 4 2 4 1 7 , , , 0 2 1 4 2 8 2 9 7 80,9 ( ( 94 4 5 ) ) 5 5 6 5 5 6 6 6 6 6 6 6 6 7 1 8 9 0 2 3 4 5 6 7 Lo I S a n n i s n P C O M s t g a a r t o C R O t R l e O s h l o e l b s d e e h m e t - t e i i r h h t p s i e l t n a n e e i e e a c i i d g n d c r r n y k l h e e t a i s m r v i ( r n o r a t e n l c i a d t e m n o t d a h s i l s n a d a a t l u u a e i a m t l n r l t a a s l r o g s l n l l p e e c s m o e m d n r v o a o t f e o o a n n r o p n l b c s e l s r v e t o c u i l i r l a a h o m n l e t t n o y u o s g e e s a n u d r r n c t s e ) s r e p g p e h l o c f a d a o r o o i i n e r l r t d d s d s a h , i t n o f d u a c m a s m e r i d h l o y o d , l e d a r , n n d f iz a a m o t t i i h o ly e n r , a p n e d r s o o t n h a e l r e p x e p r e s n o d n i a t l u r e e x s p enditures 141, ( 8 ( ( ( ( ( ( ( ( ( ( 74 4 4 4 4 4 4 4 4 4 4 7 ) ) ) ) ) ) ) ) ) ) ) 78,3 ( ( ( ( ( ( ( ( ( ( ( 9 4 4 4 4 4 4 4 4 4 4 4 6 ) ) ) ) ) ) ) ) ) ) ) 6,4 ( ( ( ( ( ( ( ( ( ( ( 9 4 4 4 4 4 4 4 4 4 4 4 6 ) ) ) ) ) ) ) ) ) ) ) 7 5 2 1 1 1 1 1 9 4 2 3 3 3 9 6 6 9 2 , , , , , , , , , , , , 9 2 0 9 0 8 2 3 5 7 0 6 0 5 4 1 7 7 6 5 0 4 9 4 0 1 5 5 9 0 8 1 5 5 3 9 6 5 2 1 1 1 3 9 1 3 1 9 3 3 1 0 6 1 , , , , , , , , , , , , 4 2 7 1 5 4 8 7 0 4 0 7 8 4 8 5 7 0 0 6 5 9 8 0 1 7 0 4 3 1 7 1 4 8 3 2 6 6 7 8 9 0 All O L o o th t a h e n r e s r t l o o a fo n r s e ign government and official institutions 52, ( 4 ( 14 4 8 ) ) 4 3 1 8 4 4 , , , 4 1 2 2 1 9 5 8 2 2 2 0 2 1 , , , 8 8 9 5 0 5 4 4 0 2 1 1 5 3 2 , , , 6 2 3 1 7 4 4 1 3 4,0 ( ( 04 4 0 ) ) 71 Lease financing receivables 15,775 13,800 2,737 11,063 1,975 72 Bank premises, furniture and fixtures, and other assets representing bank premises 25,822 16,000 1,606 14,394 9,822 7 7 3 4 R In e t a a l n g e i s b ta le t e a o ss w e n ts e d other than bank premises 3 1 , , 4 0 7 7 2 5 2,1 6 5 0 2 7 ( 844 ) 2,0 ( 649 ) 1,3 4 2 6 0 8 75 All other assets 100,481 90,332 46,995 110,986 10,149 76 Investment in unconsolidated subsidiaries and associated companies 1,981 1,843 1,212 631 138 8 7 7 7 0 7 8 9 N Cu e N U t s t o . d o S n u m . - e U a e f d r . r s S d o ' . r m e l a i s a d f s b o d e i r e l r e i e s t i y s g ( s n d e o o e n b m s r a a i ( c c n d c i c o l e e h m p ) e t i s a c , n i l f c e o e ) r s e i o g u n t s s t u a b n s d i i d n i g a ries, Edge and agreement subsidiaries .. 58,2 ( ( ( 9 4 4 4 5 ) ) ) 4 5 1 7 1 6 , , , 9 3 ( 5 0 5 5 4 5 2 3 ) 2 1 0 4 , , 4 8 ( ( 4 8 4 45 5 ) ) 4 4 3 6 , , 0 ( ( 5 6 5 4 40 7 ) ) ( ( ( 394 4 4 0 ) ) ) 81 Other 40,206 30,585 10,453 20,739 9,621 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20 Continued Banks with foreign offices2 Insured Foreign Domestic Total offices3 offices 82 Total liabilities and equity capital5 1,752,526 1,270,778 (4) (4) 83 Total liabilities excluding subordinated debt 1,651,038 1,204,539 383,391 888,190 84 Total deposits 1,324,086 922,456 298,009 624,448 85 Individuals, partnerships, and corporations 1,045,239 687,362 156,900 530,462 86 U.S. government 2,791 1,808 225 1,583 87 States and political subdivisions in United States 56,092 26,321 847 25,474 88 All other 206,895 197,477 139,328 58,149 89 Foreign governments and official institutions 25,109 24,814 17,732 7,082 9 9 9 0 1 2 Co O U m t . m h S e . e r r b c c r i a o a n m l c b m h a e e n s r k c a s ia n l i d n b a U a g n n e k i n t s c e i d i e n s S U o ta f n t i f e t o s e r d e i S gn ta t b e a s n ks 77,4 ( ( 4 4 7 ) ) 0 6 62 8 5 , , , 8 7 6 8 9 8 8 6 8 3 3 4 0 3 , , , 4 6 7 6 7 9 4 4 0 3 3 2 2 4 , , , 0 2 2 0 1 2 8 4 3 93 Banks in foreign countries 104,316 103,976 87,132 16,844 94 Foreign branches of other U.S. banks (4) 17,810 15,453 2,357 95 Other banks in foreign countries (4) 86,167 71,679 14,488 % Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,069 9,489 709 8,780 97 Federal funds purchased and securities sold under agreements to repurchase in domestic 171,519 139,334 456 138,877 offices and Edge and agreement subsidiaries 98 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed 54,517 49,774 17,224 32,550 money 99 Interest-bearing demand notes (note balances) issued to U.S. Treasury 11,815 9,523 (4) 9,523 100 Other liabilities for borrowed money 42,702 40,251 17,224 23,028 101 Mortgage indebtedness and liability for capitalized leases 2,328 1,523 11 1,512 102 All other liabilities 98,588 91,452 67,691 90,803 103 Acceptances executed and outstanding 58,407 58,017 11,193 46,824 104 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries (4) (4) 46,557 20,485 105 Other 40,181 33,435 9,941 23,494 106 Subordinated notes and debentures 6,997 5,388 469 4,919 107 Total equity capital5 94,492 60,851 (4) (4) 108 Preferred stock 537 444 (4) (4) 109 Common stock 17,633 11,534 (4) (4) 110 Surplus 31,098 18,555 (4) (4) 111 Undivided profits and reserve for contingencies and other capital reserves 45,223 30,318 (4) (4) 112 Undivided profits 44,411 29,987 (4) (4) 113 Reserve for contingencies and other capital reserves 812 331 (4) (4) MEMO 1 1 1 1 1 1 1 1 1 1 1 1 8 9 7 4 5 6 D T T T T i o o o e m O C p t t t a a a o e e t l l l h s r i t d e t d s t i i a r s e f e m i v p m c e i o i a n a n s t g n i e d t s d s s o o m o f f e d s $ t e 1 ic p 0 o 0 s o ,0 i f t f 0 i 0 ( c C e o s D r s m ) o in r e d enominations of $100,000 or more 2 2 4 2 2 4 4 0 9 7 5 0 4 3 8 5 1 , , , , , , 0 5 5 5 6 9 9 3 5 2 0 4 2 8 4 2 6 9 2 1 1 1 1 3 7 4 8 8 6 5 6 4 3 0 4 , , , , , , 9 1 0 8 0 5 4 4 5 2 8 6 1 9 8 6 9 3 0 0 0 0 0 0 2 1 1 1 1 7 3 4 8 8 6 6 5 4 3 0 4 , , , , , , 9 0 1 8 0 5 4 4 5 2 8 6 1 9 8 6 9 3 1 12 2 1 0 O Su th p e e r r N N O O W W a a c c c c o o u u n n t t s s and ATS accounts (savings deposits authorized for automatic transfer) 4 1 4 2 , , 9 5 5 6 9 3 2 5 2 , , 9 9 4 5 7 1 5,9470 2 5 2 , , 9 9 4 5 7 1 122 All other savings deposits that are subject to a federal regulatory interest rate ceiling 97,245 49,944 49,944 49,944 123 Money market time deposits (A) in minimum denomination of $2,500 but less than $100,000 1 1 1 2 2 2 4 5 6 T A D o l e l t m a s l w l a a e n v I i s t n d s e h d r t s d i o h v e r a c i i p d n e g o u r i t s $ n a i i 1 a l f t i l 0 s c R 0 m a a e , t 0 d t e a 0 i j s t r u 0 u e s r m w t i e t e i i d e t n h 6 s t o o A r f i c g 2 c i 6 o n u a w n l e t m s e k a ( s I tu R , r A a it n ) i d e a s ( n B o d f ) K 9 in 1 e o m d g a i h n y i s P m la u n m a d c e c n o o u m nt i s n ation of $2,500 but 1 1 1 1 8 4 6 1 1 , , , , 1 0 5 0 6 4 6 6 1 8 0 5 1 4 0 2 8 9 9 , , , , 2 8 2 2 6 5 0 7 0 0 9 2 0 0 0 0 1 4 0 9 2 8 9 , , , , 8 2 2 2 0 5 6 7 0 9 0 2 127 Standby letters of credit, total, and guarantees issued by the reporting bank's foreign offices 101,722 95,701 20,684 75,016 128 U.S. addressees (domicile) (4) 69,989 (4) (4) 129 Non-U.S. addressees (domicile) (4) 25,712 (4) (4) 130 Standby letters of credit conveyed to others through participations (included in total standby 8,439 8,154 654 7,499 131 Hold l i e n t g te s rs o f o c f o c m re m di e t r ) c ial paper included in total gross loans (4) (4) (4) 493 Average for 30 calendar days (or calendar month) ending with report date 132 Total assets 1,733,610 1,257,129 329,526 927,603 133 Cash and due from depository institutions 274,803 221,508 119,105 102,404 134 Federal funds sold and securities purchased under agreements to resell 72,907 40,645 736 39,908 135 Total loans 984,439 738,351 197,013 541,338 136 Total deposits 1,300,608 904,396 289,777 614,619 137 Time CDs in denominations of $100,000 or more in domestic offices 206,7600 (4> 0 (4> 0 147,2030 1 1 3 3 8 9 O Fe th d e e r r a l l i a f b u i n li d ti s e s p u fo rc r h b a o s r e r d o w an e d d s m e o cu n r e i y t ies sold under agreements to repurchase 0 0 0 0 140 Number of banks 1,738 194 194 194 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1983 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over Consolidated Report of Condition; March 31, 1983 Millions of dollars Member banks NNoonn-- IItteemm mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,435,709 1,214,655 922,885 291,770 221,053 2 Cash and due from depository institutions 164,905 141,734 104,941 36,794 23,171 3 Currency and coin (U.S. and foreign) 13,302 11,274 8,979 2,295 2,028 4 Balances with Federal Reserve Banks 21,190 20,000 14,293 5,707 1,190 5 Balances with other central banks 293 293 250 43 * 6 Demand balances with commercial banks in United States 18,073 12,011 9,701 2,310 6,062 7 All other balances with depository institutions in United States and with banks in foreign countries 46,146 35,700 28,507 7,193 10,446 8 Time and savings balances with commercial banks in United States 14,117 10,019 8,227 1,791 4,098 9 Balances with other depository institutions in United States 352 194 153 41 159 10 Balances with banks in foreign countries 31,677 25,488 20,126 5,361 6,189 11 Cash items in process of collection 65,902 62,457 43,211 19,246 3,445 12 Total securities, loans, and lease financing receivables 1,121,595 936,691 714,805 221,886 184,904 13 Total securities, book value 257,924 201,706 153,147 48,559 56,218 14 U.S. Treasury 87,752 67,171 51,471 15,701 20,580 15 Obligations of other U.S. government agencies and corporations 41,216 29,319 24,405 4,914 11,896 16 Obligations of states and political subdivisions in United States 105,975 84,847 64,272 20,575 21,128 17 All other securities 22,982 20,369 12,999 7,369 2,614 18 Other bonds, notes, and debentures 5,907 3,702 2,726 976 2,205 19 Federal Reserve and corporate stock 1,823 1,616 1,223 393 207 20 Trading account securities 15,252 15,051 9,050 6,000 202 21 Federal funds sold and securities purchased under agreements to resell 68,617 57,417 44,140 13,276 11,200 22 Total loans, gross 804,781 684,394 522,832 161,561 120,387 23 LESS: Unearned income on loans 11,747 9,055 6,910 2,146 2,692 24 Allowance for possible loan loss 11,018 9,610 7,292 2,318 1,408 25 EQUALS: Loans, net 782,015 665,728 508,630 157,098 116,287 Total loans, gross, by category 26 Real estate loans 223,980 180,070 149,040 3311,,003300 4433,,991100 27 Construction and land development 47,506 40,323 31,845 8,478 7,183 28 Secured by farmland 2,351 1,726 1,545 181 625 29 Secured by residential properties 119,264 95,956 80,880 15,076 23,308 30 1- to 4-family 112,845 90,870 76,688 14,182 21,976 31 FHA-insured or VA-guaranteed 6,669 5,886 4,926 960 783 32 Conventional 106,176 84,984 71,762 13,222 21,192 33 Multifamily 6,418 5,086 4,191 895 1,332 34 FHA-insured 373 242 142 100 130 35 Conventional 6,045 4,844 4,050 794 1,202 36 Secured by nonfarm nonresidential properties 54,860 42,065 34,770 7,295 12,795 37 Loans to financial institutions 69,198 64,210 40,460 23,750 4,988 38 REITs and mortgage companies in United States 5,194 4,894 3,749 1,145 300 39 Commercial banks in United States 15,033 11,550 8,310 3,240 3,483 24,524 23,941 13,734 10,207 583 41 Finance companies in United States 10,920 10,662 6,620 4,042 258 13,527 13,163 8,047 5,115 364 43 Loans for purchasing or carrying securities 12,442 11,914 6,708 5,206 528 8,022 7,885 3,711 4,174 136 45 Other 4,421 4,029 2,997 1,032 392 46 Loans to finance agricultural production and other loans to farmers 11,941 10,507 9,544 963 1,434 322,224 280,649 208,748 71,900 41,575 48 Loans to individuals for household, family, and other personal expenditures 135,381 109,547 90,402 19,145 25,834 111,030 89,837 74,785 15,052 21,193 38,124 28,924 23,983 4,941 9,200 51 Credit cards and related plans 33,617 30,738 25,553 5,185 2,879 52 Retail (charge account) credit card 28,292 26,109 21,910 4,199 2,183 53 Check and revolving credit 5,324 4,629 3,643 986 6% 6,486 5,175 4,754 422 1,311 55 Other installment loans 32,803 25,000 20,495 4,505 7,804 7,198 5,784 4,783 1,001 1,415 57 Residential property repair and modernization 7,129 5,098 4,164 934 2,031 58 Other installment loans for household, family, and other personal expenditures 18,476 14,118 11,548 2,570 4,358 24,351 19,710 15,618 4,092 4,641 29,614 27,497 17,930 9,568 2,117 61 Lease financing receivables 13,038 11,839 8,887 2,953 1,199 62 Bank premises, furniture and fixtures, and other assets representing bank premises 24,216 19,730 15,870 3,859 4,487 63 Real estate owned other than bank premises 3,389 2,741 2,222 519 648 468 254 238 16 213 121,135 113,504 84,808 28,696 7,631 66 Investment in unconsolidated subsidiaries and associated companies 769 662 529 133 106 67 Customers' liability on acceptances outstanding 43,450 42,770 30,277 12,493 680 68 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 46,557 44,235 35,263 8,972 2,322 69 Other 30,360 25,837 18,739 7,097 4,523 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 70 Total liabilities and equity capital8 1,435,709 1,214,655 922,885 291,770 221,053 71 Total liabilities excluding subordinated debt 1,334,689 1,129,686 858,974 270,712 205,004 77 Total deposits 1,026,077 838,312 653,480 184,832 187,765 73 Individuals, partnerships, and corporations 888,339 720,453 569,439 151,013 167,886 74 U.S. government 2,566 2,165 1,779 387 401 75 States and political subdivisions in United States 55,245 41,354 34,054 7,300 13,891 76 All other 67,567 63,734 41,489 22,245 3,833 77 Foreign governments and official institutions 7,377 7,040 3,683 3,357 338 78 Commercial banks in United States 43,006 40,079 28,549 11,531 2,927 79 Banks in foreign countries 17,184 16,615 9,257 7,358 569 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,359 10,606 6,719 3,887 1,754 81 275,606 235,394 173,971 61,422 40,212 82 Mutual savings banks 1,084 945 532 413 138 83 Other individuals, partnerships, and corporations 216,268 181,424 136,828 44,597 34,844 84 U.S. government 1,774 1,503 1,156 347 271 85 States and political subdivisions in United States 9,489 7,782 6,153 1,629 1,707 86 All other 34,632 33,134 22,584 10,550 1,498 87 Foreign governments and official institutions 1,291 1,218 600 618 73 88 Commercial banks in United States 26,864 25,604 19,249 6,355 1,260 89 Banks in foreign countries 6,478 6,312 2,735 3,577 165 90 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,359 10,606 6,719 3,887 1,754 91 Time deposits 451,941 366,647 286,922 79,725 85,295 92 Mutual savings banks 172 148 88 61 24 93 Other individuals, partnerships, and corporations 375,863 304,381 241,624 62,757 71,482 94 U.S. government 706 587 550 37 119 95 States and political subdivisions in United States 42,398 31,041 25,865 5,177 11,356 % All other 32,802 30,489 18,795 11,693 2,314 97 Foreign governments and official institutions 5,999 5,736 2,998 2,738 263 98 Commercial banks in United States 16,097 14,450 9,276 5,174 1,647 99 Banks in foreign countries 10,706 10,303 6,522 3,781 403 100 Savings deposits 298,529 236,272 192,587 43,685 62,258 101 Mutual savings banks 1 1 1 * * 102 Other individuals, partnerships, and corporations 294,951 233,552 190,367 43,185 61,398 103 Individuals and nonprofit organizations 267,587 213,116 173,470 39,646 54,470 104 Corporations and other profit organizations 27,364 20,436 16,897 3,539 6,928 105 U.S. government 86 75 73 2 1111 106 States and political subdivisions in United States 3,359 2,531 2,036 495 882277 107 All other 133 112 109 2 21 108 Foreign governments and official institutions 87 86 86 11 11 109 Commercial banks in United States 45 26 24 22 1199 110 Banks in foreign countries * * * 111 Federal funds purchased and securities sold under agreements to repurchase 171,063 161,005 115,308 45,696 10,058 112 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed 37,293 35,362 21,962 13,400 1,931 113 Interest-bearing demand notes (note balances) issued to U.S. Treasury 11,815 10,931 8,119 2,811 884 114 Other liabilities for borrowed money 25,478 24,431 13,842 10,589 1,047 115 Mortgage indebtedness and liability for capitalized leases 2,317 1,911 1,602 309 406 116 All other liabilities 97,939 93,096 66,622 26,474 4,843 117 Acceptances executed and outstanding 47,214 46,534 34,013 12,522 680 118 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 20,485 19,500 13,947 5,553 985 119 Other 30,240 27,061 18,662 8,399 3,178 120 Subordinated notes and debentures 6,528 5,466 3,429 2,037 1,062 121 Total equity capital8 94,492 79,504 60,482 19,021 14,988 MEMO 122 Time deposits of $100,000 or more 244,092 206,538 153,647 52,890 37,554 123 Certificates of deposit (CDs) in denominations of $100,000 or more 203,538 168,780 128,539 40,241 34,758 P4 40,554 37,758 25,108 12,650 2,796 125 Super NOW accounts 12,563 9,680 8,068 1,612 2,883 126 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer) 44,959 35,473 29,284 6,189 9,486 127 All other savings deposits that are subject to a federal regulatory interest rate ceiling 97,245 76,160 61,462 14,697 21,085 128 Money market time deposits (A) in minimum denomination of $2,500 but less than $100,000 with original maturities of 26 weeks, and (B) in minimum denomination of $2,500 but less than $100,000 with original maturities of 91 days 111,560 85,927 71,751 14,176 2255,,663333 129 All savers certificates 41,161 3,292 2,756 536 869 130 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 16,048 12,637 10,366 2,271 3,411 131 Demand deposits adjusted6 181,066 145,830 110,356 35,474 35,237 132 Standby letters of credit 81,037 77,933 48,764 29,170 3,104 133 Conveyed to others through participation (included in standby letters of credit) 7,785 7,700 5,093 2,607 85 134 Holdings of commercial paper included in total gross loans 1,767 1,218 797 421 549 Average for 30 calendar days (or calendar month) ending with report date 135 1,404,084 1,186,222 902,741 228833,,448811 217,863 136 Cash and due from depository institutions 155,698 134,215 99,411 34,804 21,483 137 Federal funds sold and securities purchased under agreements to resell 72,171 60,632 46,682 13,950 11,539 138 787,426 669,806 511,187 158,619 117,620 139 Total deposits 1,010,832 825,438 642,923 182,515 185,393 140 Time CDs in denominations of $100,000 or more in domestic offices 206,760 171,821 130,415 41,406 34,938 141 Federal funds purchased and securities sold under agreements to repurchase 175,662 165,582 120,422 45,160 10,080 142 Other liabilities for borrowed money 21,666 20,526 11,488 9,038 1,141 143 Number of banks 1,738 1,074 899 175 664 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1983 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1" Consolidated Report of Condition; March 31, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1,866,625 1,395,214 1,073,955 321,260 471,411 2 Cash and due from depository institutions 201,601 158,634 119,312 39,322 42,967 3 Currency and coin (U.S. and foreign) 18,284 13,503 10,847 2,657 4,780 4 Balances with Federal Reserve Banks 23,278 21,665 15,689 5,977 1,612 5 Balances with other central banks 293 293 250 43 * 6 Demand balances with commercial banks in United States 32,607 17,128 14,122 3,006 15,480 7 All other balances with depository institutions in United States and with banks in foreign countries 58,615 41,979 33,867 8,112 16,637 8 Cash items in process of collection 68,524 64,066 44,538 19,528 4,457 9 Total securities, loans, and lease financing receivables 1,496,748 1,092,526 844,955 247,571 404,223 10 Total securities, book value 389,801 256,318 198,786 57,532 133,483 11 U.S. Treasury 136,074 87,052 67,759 19,293 49,022 12 Obligations of other U.S. government agencies and corporations 78,830 44,567 37,110 7,457 34,264 13 Obligations of states and political subdivisions in United States 149,714 103,327 80,082 23,244 46,387 14 All other securities 25,182 21,372 13,834 7,538 3,810 15 Federal funds sold and securities purchased under agreements to resell 98,745 70,763 55,347 15,417 27,982 16 Total loans, gross 1,025,764 775,617 598,912 176,706 250,147 17 LESS: Unearned income on loans 17,707 11,617 9,030 2,587 6,091 18 Allowance for possible loan loss 13,320 10,605 8,136 2,469 2,715 19 EQUALS: Loans, net 994,737 753,396 581,745 171,650 241,341 Total loans, gross, by category 20 Real estate loans 301,062 211,526 117744,,999933 3366,,553333 8899,,553377 21 Construction and land development 53,218 42,384 33,661 8,724 10,834 22 Secured by farmland 8,455 3,748 3,144 605 4,707 23 Secured by residential properties 165,379 115,685 96,998 18,687 49,693 24 1- to 4-family 157,566 110,060 92,367 17,693 47,506 25 Multifamily 7,812 5,625 4,631 994 2,187 26 Secured by nonfarm nonresidential properties 74,010 49,708 41,191 8,517 24,302 27 Loans to financial institutions 73,477 66,214 42,168 24,046 7,263 28 Loans for purchasing or carrying securities 13,077 12,154 6,911 5,244 922 29 Loans to finance agricultural production and other loans to farmers 36,444 19,706 17,112 2,593 16,739 30 Commercial and industrial loans 380,006 304,639 229,090 75,549 75,367 31 Loans to individuals for household, family, and other personal expenditures 188,623 132,443 109,510 22,933 56,179 32 Installment loans 150,191 106,983 89,084 17,898 43,209 33 Passenger automobiles 57,998 37,424 31,079 6,346 20,574 34 Credit cards and related plans 35,490 31,954 26,537 5,417 3,536 35 Mobile homes 9,582 6,564 5,910 654 3,018 36 All other installment loans for household, family, and other personal expenditures 47,121 31,040 25,558 5,482 16,080 37 Single-payment loans 38,432 25,461 20,426 5,035 12,971 38 All other loans 33,075 28,935 19,127 9,808 4,140 39 Lease financing receivables 13,465 12,049 9,077 2,972 1,417 40 Bank premises, furniture and fixtures, and other assets representing bank premises 32,829 23,354 18,926 4,472 9,476 41 Real estate owned other than bank premises 4,697 3,226 2,612 615 1,471 42 Intangible assets 579 325 289 36 254 130,171 117,150 87,861 29,289 13,022 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 44 Total liabilities and equity capital8 1,866,625 1,395,214 1,073,955 321,260 471,411 45 Total liabilities excluding subordinated debt 1,727,840 1,294,346 996,859 297,486 433,494 •46 Total deposits 1,406,505 996,690 786,320 210,370 409,815 47 Individuals, partnerships, and corporations 1,232,741 864,474 690,265 174,210 368,266 48 U.S. government 3,249 2,461 2,033 428 788 49 States and political subdivisions in United States 85,761 53,124 44,036 9,087 32,637 50 All other 69,442 64,752 42,196 22,557 4,690 51 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,311 11,878 7,791 4,087 3,433 52 Demand deposits 347,260 265,699 199,641 66,058 81,561 53 Individuals, partnerships, and corporations 280,189 208,883 159,912 48,970 71,307 54 U.S. government 2,299 1,730 1,355 375 569 55 States and political subdivisions in United States 13,817 9,556 7,673 1,884 4,260 56 All other 35,644 33,652 22,910 10,742 1,992 57 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,311 11,878 7,791 4,087 3,433 58 Time deposits 639,280 442,588 350,354 92,234 196,692 59 Other individuals, partnerships, and corporations 540,611 371,694 297,742 73,952 168,916 60 U.S. government 846 646 596 50 200 61 States and political subdivisions in United States 64,204 39,277 32,855 6,422 24,928 62 All other 33,619 30,972 19,161 11,811 2,648 63 Savings deposits 419,965 288,403 236,326 52,077 131.562 64 Corporations and other profit organizations 33,360 22,880 18,883 3,998 10,480 65 Other individuals, partnerships, and corporations 378,580 261,017 213,727 47,290 117.563 66 U.S. government 104 85 82 3 19 67 States and political subdivisions in United States 7,740 4,291 3,509 782 3,449 68 All other 179 129 125 4 50 69 Federal funds purchased and securities sold under agreements to repurchase 176,514 164,169 117,821 46,348 12,345 70 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for 38,565 36,054 22,464 13,591 2,511 borrowed money 71 Mortgage indebtedness and liability for capitalized leases 2.733 2,061 1,724 338 672 72 All other liabilities 103,523 95,371 68,531 26,840 8,152 73 Subordinated notes and debentures 7,064 5,695 3,632 2,063 1,369 74 Total equity capital8 131,721 95,174 73,463 21,711 36,547 MEMO ITEMS 75 Time deposits of $100,000 or more 287,595 223,899 168,519 55,380 63,696 76 Certificates of deposit (CDs) in denominations of $100,000 or more 243,704 184,789 142,223 42,566 58,915 77 Other 43,891 39,109 26,296 12,814 4,782 78 Super NOW accounts 22,382 13,559 11,289 2,270 8,823 79 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).. 68,673 45,618 37,865 7,752 23,055 80 All other savings deposits that are subject to a federal regulatory interest rate ceiling 136,769 93,382 75,521 17,861 43,387 81 Money market time deposits (A) in minimum denomination of $2,500 but less than $100,000 with original maturities of 26 weeks, and (B) in minimum denomination of $2,500 but less than $100,000 with original maturities of 91 days 192,575 118.782 99,257 19,525 73,793 82 All savers certificates 5,992 4,043 3,373 670 1,949 83 Total Individual Retirement Accounts (IRA) and Keogh plan accounts 22,686 15,326 12,629 2,697 7,360 84 Demand deposits adjusted6 248,569 173.783 134,175 39,607 74,787 85 Total standby letters of credit 82,958 78,700 49,413 29,288 4,257 Average for 30 calendar days (or calendar month) ending with report date 86 Total deposits 1,387,572 982,123 774,263 207,860 405,449 87 Number of banks 14,486 5,695 4,654 1,041 8,791 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 3. Foreign offices include branches in foreign countries and in U.S. territories commercial banks. Commercial banks with assets less than $100 million and with and possessions, subsidiaries in foreign countries, and all offices of Edge Act and domestic offices only were given the option to complete either the abbreviated or agreement corporations wherever located. the standard set of reports. Banks with foreign offices began reporting in greater 4. This item is unavailable for all or some of the banks because of the lesser detail on a consolidated domestic and foreign basis. These tables reflect the detail available from banks without foreign offices, the inapplicability of certain varying levels of reporting detail. items to banks that have only domestic offices, and the absence of detail on a fully Beginning Dec. 3, 1981, depository institutions may establish international consolidated basis for banks with foreign offices. banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks 5. Equity capital is not allocated between the domestic and foreign offices of is reflected in the appropriate asset and liability line items in the domestic office banks with foreign offices. portion of the tables. Activity of IBFs established by Edge Act and Agreement 6. Demand deposits adjusted equal demand deposits other than domestic subsidiaries of U.S. commercial banks is reflected in the appropriate asset and commercial interbank and U.S. government less cash items in process of liability line items in the foreign office portion of the tables. When there is a collection. column for fully consolidated foreign and domestic data, activity of IBFs is 7. Domestic offices exclude branches in foreign countries and in U.S. terrireflected in the appropriate asset and liability line items in that portion of the tories and possessions, subsidiaries in foreign countries, and all offices of Edge tables. Act and agreement corporations wherever located. 2. All transactions between domestic and foreign offices of a bank are reported 8. This item contains the capital accounts of U.S. banks that have no Edge or in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent foreign operations and reflects the difference between domestic office assets and transactions with parties other than the domestic and foreign offices of each bank. liabilities of U.S. banks with Edge or foreign operations excluding the capital Since these intraoffice transactions are erased by consolidation, total assets and accounts of their Edge or foreign subsidiaries. liabilities are the sum of all except intraoffice balances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1983 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, March 31, 1983' Millions of dollars All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 1 Total assets5 212,380 155,884 56,496 137,486 8,949 43,982 9,198 7,707 5,058 2 Cash and due from depository institutions 35,974 32,401 3,573 30,797 646 22,,880099 1,218 309 196 3 Currency and coin (U.S. and foreign) 21 18 3 14 1 11 2 1 1 4 Balances with Federal Reserve Banks 1,186 1,121 65 936 22 44 27 142 15 5 Balances with other central banks 84 72 11 72 0 11 0 0 0 6 Demand balances with commercial banks in United States 997 859 138 790 58 60 37 23 29 7 All other balances with depository institutions in United States and with banks in foreign countries 33,562 30,212 3,350 2288,,887733 563 22,,669900 11,,114488 140 148 8 Time and savings balances with commercial banks in United States 15,653 13,816 1,836 1133,,004444 385 11,,442211 646 98 60 9 Balances with other depository institutions in United States 125 122 3 122 0 1 0 0 3 10 Balances with banks in foreign countries 17,784 16,274 1,511 15,707 178 1,269 501 43 86 11 Foreign branches of U.S. banks 1,715 1,689 26 1,631 4 18 56 2 4 12 Other banks in foreign countries 16,070 14,585 1,485 14,076 174 1,250 446 41 82 13 Cash items in process of collection 125 119 6 113 1 3 4 2 2 14 Total securities, loans, and lease financing receivables . 130,468 97,299 33,169 84,635 5,425 24,858 7,142 4,192 4,216 15 Total securities, book value 7,048 6,388 660 6,106 324 349 231 32 6 16 U.S. Treasury 4,551 4,197 354 4,072 284 83 86 25 0 17 Obligations of other U.S. government agencies and corporations 515 495 19 487 2 20 0 3 2 18 Obligations of states and political subdivisions in United States 78 73 5 48 1 1 23 1 4 19 Other bonds, notes, debentures, and corporate stock . 1,904 1,623 281 1,499 37 246 122 2 0 20 Federal funds sold and securities purchased under agreements to resell 8,314 6,746 1,568 5,984 893 642 509 248 38 By holder 21 Commercial banks in United States 7,411 5,933 1,478 5,175 812 637 505 248 33 22 Others 903 813 90 809 80 5 4 0 5 By type 23 One-day maturity or continuing contract 8,128 6,562 1,566 5,801 893 642 509 248 36 24 Securities purchased under agreements to resell . 244 232 12 63 8 4 0 169 0 25 Other 7,884 6,330 1,554 5,738 884 638 509 79 36 26 Other securities purchased under agreements to resell 185 184 2 183 0 0 1 0 2 27 Total loans, gross 123,555 90,998 32,558 78,608 5,111 24,545 6,917 4,162 4,212 28 LESS: Unearned income on loans 137 88 49 79 10 37 6 2 2 29 EQUALS: Loans, net 123,419 90,910 32,509 78,528 5,101 24,508 6,911 4,160 4,210 Total loans, gross, by category 30 Real estate loans 5,028 1,990 3,038 1,339 18 2,098 59 465 1,049 31 Loans to financial institutions 46,988 35,908 11,080 32,402 1,373 9,455 2,769 250 740 32 Commercial banks in United States 24,569 18,377 6,192 16,295 457 5,724 1,567 235 291 33 U.S. branches and agencies of other foreign banks . 21,757 15,827 5,930 14,123 385 5,566 1,217 218 247 34 Other commercial banks 2,812 2,550 262 2,171 72 158 350 17 44 35 Banks in foreign countries 20,914 16,363 4,552 15,321 813 3,510 821 15 435 36 Foreign branches of U.S. banks 735 657 78 544 18 97 75 0 0 37 Other 20,180 15,706 4,474 14,777 794 3,413 746 15 435 38 Other financial institutions 1,505 1,169 337 786 103 220 381 1 15 39 Loans for purchasing or carrying securities 685 674 11 601 11 73 0 1 0 40 Commercial and industrial loans 55,535 40,195 15,340 32,707 2,512 11,203 3,652 3,244 2,217 41 U.S. addressees (domicile) 32,278 22,414 9,863 16,374 783 8,063 3,036 2,472 1,550 42 Non-U.S. addressees (domicile) 23,257 17,781 5,477 16,333 11,,772299 33,,114400 616 773 667 43 Loans to individuals for household, family, and other personal expenditures 215 154 61 108 14 49 12 25 6 44 All other loans 15,104 12,077 3,028 11,452 1,183 11,,666688 425 177 199 45 Loans to foreign governments and official institutions 13,627 10,715 2,913 10,227 1,131 1,622 389 82 177 46 Other 1,477 1,362 115 1,225 53 46 36 95 22 47 Lease financing receivables 1 1 0 1 0 0 0 0 0 48 All other assets 37,625 19,438 18,187 16,070 1,986 15,674 329 2,958 608 49 Customers' liability on acceptances outstanding .... 10,472 7,659 2,813 7,363 329 2,432 90 186 71 50 U.S. addressees (domicile) 5,867 3,765 2,102 3,650 41 2,062 73 30 11 51 Non-U.S. addressees (domicile) 4,604 3,894 710 3,713 288 370 18 156 60 52 Net due from related banking institutions6 21,840 7,546 14,294 4,835 1,416 12,444 22 2,687 437 53 Other 5,313 4,233 1,080 3,873 240 798 216 85 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 4.30 Continued All states2 New York Other states2 IItteemm Total Branches3 Agencies Branches3 Agencies ff tt oo CC oo rr aa tt nn aa ll ii ii ll -- aa 44 ,, bb II rr ll aa llii nn nn cc oo hh iiss ee ,, ss Branches Agencies 54 Total liabilities5 212,380 155,884 56,496 137,486 8,949 43,982 9,198 7,707 5,058 55 Total deposits and credit balances 95,603 82,689 12,915 74,820 3,672 8,497 2,245 4,886 1,484 56 Individuals, partnerships, and corporations 36,982 33,824 3,159 27,905 1,212 1,283 715 4,650 1,217 57 U.S. addressees (domicile) 25,519 25,445 74 20,085 41 226 614 4,540 13 58 Non-U.S. addressees (domicile) 11,463 8,378 3,085 7,820 1,171 1,057 101 110 1,204 59 U.S. government, states, and political subdivisions in United States 101 101 0 16 0 4 0 80 0 60 All other 58,520 48,764 9,756 46,899 2,460 7,210 1,529 155 267 61 Foreign governments and official institutions .... 5,436 4,390 1,045 4,195 902 253 47 23 16 62 Commercial banks in United States 22,262 18,025 4,237 17,165 604 3,507 766 71 150 63 U.S. branches and agencies of other foreign banks 14,069 11,187 2,882 10,736 285 2,553 433 13 49 64 Other commercial banks in United States 8,193 6,838 1,355 6,430 318 954 333 58 101 65 Banks in foreign countries 30,261 25,900 4,361 25,117 883 3,426 699 54 83 66 Foreign branches of U.S. banks 6,160 5,082 1,078 4,836 304 759 206 40 14 67 Other banks in foreign countries 24,101 20,818 3,283 20,280 578 2,666 493 14 69 68 Certified and officers' checks, traveler's checks, and letters of credit sold for cash 561 449 112 421 72 24 18 8 18 69 Demand deposits 3,078 2,837 240 2,581 78 84 114 115 106 70 Individuals, partnerships, and corporations 1,682 1,590 92 1,393 5 46 92 82 65 71 U.S. addressees (domicile) 1,068 1,066 2 890 0 12 88 77 1 72 Non-U.S. addressees (domicile) 614 523 91 503 4 34 4 5 64 73 U.S. government, states, and political subdivisions in United States 6 6 0 5 0 0 0 1 0 74 All other 1,390 1,241 148 1,183 73 38 22 33 41 75 Foreign governments and official institutions .... 195 187 8 163 0 8 1 23 0 76 Commercial banks in United States 49 38 11 35 0 1 0 1 11 77 U.S. branches and agencies of other foreign banks 5 5 0 4 0 0 0 0 0 78 Other commercial banks in United States 44 33 11 31 0 1 0 1 11 79 Banks in foreign countries 585 567 17 563 1 5 3 0 12 80 Certified and officers' checks, traveler's checks, and letters of credit sold for cash 561 449 112 421 72 24 18 8 18 81 Time deposits 91,606 79,196 12,410 71,780 3,408 8,318 2,061 4,689 1,350 82 Individuals, partnerships, and corporations 34,579 31,715 2,864 26,190 1,080 1,144 554 4,487 1,124 83 U.S. addressees (domicile) 23,959 23,957 3 18,947 1 162 462 4,386 1 84 Non-U.S. addressees (domicile) 10,619 7,758 2,861 7,244 1,079 982 91 100 1,123 85 U.S. government, states, and political subdivisions in United States 94 94 0 10 0 4 0 80 0 86 All other 56,933 47,387 9,546 45,580 2,328 7,170 1,507 123 226 87 Foreign governments and official institutions .... 5,221 4,197 1,024 4,026 889 244 46 0 15 88 Commercial banks in United States 22,156 17,939 4,216 1177,,008855 594 3,506 765 69 139 89 U.S. branches and agencies of other foreign banks 14,033 11,151 2,882 10,700 285 2,553 433 13 49 90 Other commercial banks in United States 8,122 6,788 1,334 6,382 309 953 332 56 90 91 Banks in foreign countries 29,557 25,251 4,306 24,471 845 3,420 696 53 71 92 Savings deposits 516 475 41 281 0 69 70 80 15 93 Individuals, partnerships, and corporations 516 475 41 281 0 69 70 80 15 94 U.S. addressees (domicile) 390 390 0 219 0 32 64 75 0 95 Non-U.S. addressees (domicile) 126 85 41 62 0 38 6 5 15 % U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 0 0 0 0 0 0 0 0 0 98 Credit balances 404 180 223 177 187 26 0 2 12 99 Individuals, partnerships, and corporations 206 44 162 41 127 24 0 2 12 100 U.S. addressees (domicile) 102 32 70 29 40 21 0 2 11 101 Non-U.S. addressees (domicile) 104 12 92 12 88 3 0 0 1 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 198 136 61 136 59 2 0 0 0 104 Foreign governments and official institutions .... 20 6 14 6 12 1 0 0 0 105 Commercial banks in United States 58 48 10 48 10 1 0 0 0 106 U.S. branches and agencies of other foreign banks 31 31 0 31 0 0 0 0 0 107 Other commercial banks in United States 27 17 10 17 10 0 0 0 0 108 Banks in foreign countries 119 82 37 82 37 0 0 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • August 1983 4.30 Continued All states2 New York Other states2 IItteemm Total Branches3 Agencies Branches3 Agencies f t o C o r t a n a l i i l a - 4 , bb II rr ll aa llii nn nn cc oo hh iiss ee ,, ss Branches Agencies 109 Federal funds purchased and securities sold under agreement to repurchase 18,989 12,628 6,360 11,396 1,290 4,234 754 385 930 By holder 110 Commercial banks in United States 15,631 10,333 5,299 9,125 962 4,124 729 385 306 111 Others 3,357 2,296 1,061 2,271 327 111 25 0 624 By type 112 One-day maturity or continuing contract 17,833 11,575 6,258 10,452 1,231 4,191 644 385 929 113 Securities sold under agreements to repurchase .. 1,873 1,753 120 1,539 73 44 84 130 3 114 Other 15,960 9,822 6,138 8,913 1,158 4,148 560 255 115 Other securities sold under agreements to 926 repurchase 1,156 1,054 102 944 59 43 110 0 1 116 Other liabilities for borrowed money 50,057 22,321 27,737 20,459 1,838 25,316 1,150 646 648 117 Owed to banks 46,935 19,849 27,086 18,058 1,819 24,672 1,115 627 645 118 U.S. addressees (domicile) 44,548 18,012 26,537 16,281 1,543 24,627 1,100 587 411 119 Non-U.S. addressees (domicile) 2,387 1,837 549 1,777 276 45 15 40 234 120 Owed to others 3,122 2,472 651 2,401 20 644 35 19 3 121 U.S. addressees (domicile) 2,852 2,265 588 2,205 15 585 29 19 0 122 Non-U.S. addressees (domicile) 270 207 63 196 5 59 7 0 3 123 All other liabilities 47,731 38,246 9,485 30,812 2,148 5,935 5,049 1,791 1,997 124 Acceptances executed and outstanding 11,474 8,426 3,049 8,117 376 2,614 92 197 77 125 Net due to related banking institutions6 32,600 26,808 5,792 19,923 1,651 2,834 4,843 1,490 1,859 126 Other 3,657 3,012 644 2,772 121 487 114 103 60 MEMO 127 Time deposits of $100,000 or more 74,181 65,620 8,561 58,682 62 8,007 1,659 4,629 1,142 128 Certificates of deposit (CDs) in denominations of $100,000 or more 33,008 31,456 1,552 25,740 13 1,197 699 4,494 865 129 Other 41,173 34,164 7,009 32,942 49 6,810 959 135 277 130 Savings deposits authorized for automatic transfer and NOW accounts 88 69 19 47 0 11 11 8 11 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 0 0 0 0 0 0 0 0 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 3,479 3,464 15 2,988 0 14 80 390 7 133 Acceptances refinanced with a U.S.-chartered bank .. 3,523 2,660 863 2,475 101 762 40 145 0 134 Statutory or regulatory asset pledge requirement 79,830 77,645 2,184 72,170 1,932 68 5,412 46 201 135 Statutory or regulatory asset maintenance requirement 9,305 9,103 202 5,465 38 427 737 2,476 162 136 Commercial letters of credit 6,903 4,351 2,551 3,832 484 2,003 292 210 81 137 Standby letters of credit, total 15,816 13,625 2,191 12,299 439 1,211 648 437 783 138 U.S. addressees (domicile) 13,486 11,668 1,819 10,676 299 975 522 286 729 139 Non-U.S. addressees (domicile) 2,330 1,958 372 1,623 140 236 126 152 54 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 3,106 2,911 195 2,850 118 93 27 17 0 141 Holdings of commercial paper included in total gross loans 677 611 66 579 25 29 30 2 13 142 Holdings of acceptances included in total commercial and industrial loans 4,731 3,557 1,175 3,414 154 1,011 45 96 11 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 35,512 13,070 22,443 11,875 1,532 20,754 833 326 192 144 Gross due from related banking institutions6 83,877 56,354 27,523 50,691 6,479 20,109 1,901 3,573 1,125 145 U.S. addressees (domicile) 21,829 9,054 12,775 5,641 1,457 11,036 61 3,275 359 146 Branches and agencies in the United States 21,497 8,943 12,554 5,537 1,370 10,898 59 3,275 359 147 In the same state as reporter 527 124 403 89 29 349 0 35 26 148 In other states 20,970 8,819 12,151 5,448 1,341 10,549 59 3,240 334 149 U.S. banking subsidiaries7 332 111 221 104 87 138 2 0 0 150 Non-U.S. addressees (domicile) 62,048 47,300 14,748 45,050 5,022 9,073 1,840 298 765 151 Head office and non-U.S. branches and agencies. 59,688 45,250 14,438 43,036 4,949 8,914 1,807 298 686 152 Non-U.S. banking companies and offices 2,359 2,050 309 2,014 73 159 33 0 79 153 Gross due to related banking institutions6 94,636 75,616 19,021 65,778 6,714 10,499 6,722 2,376 2,547 154 U.S. addressees (domicile) 20,480 13,376 7,104 8,119 2,387 3,707 3,330 1,613 1,325 155 Branches and agencies in the United States 20,050 13,241 6,809 8,015 2,151 3,661 3,326 1,610 1,287 156 In the same state as reporter 649 354 295 321 22 269 0 33 3 157 In other states 19,401 12,887 6,514 7,694 2,129 3,392 3,326 1,577 1,284 158 U.S. banking subsidiaries7 430 136 294 104 235 46 4 2 38 159 Non-U.S. addressees (domicile) 74,156 62,239 11,917 57,660 4,327 6,792 3,392 763 1,222 160 Head office and non-U.S. branches and agencies. 72,391 60,579 11,812 56,096 4,311 6,722 3,303 763 1,197 161 Non-U.S. banking companies and offices 1,765 1,661 104 1,564 16 70 89 0 26 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A79 4.30 Continued All states2 New York Other states2 IItteemm ffoo CC rr aa nn ll ii ii aa -- ,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets 216,758 153,246 63,512 135,152 16,985 42,828 8,918 7,684 5,192 163 Cash and due from depository institutions 34,353 31,018 3,336 29,455 592 2,627 1,220 270 189 164 Federal funds sold and securities purchased under agreements to resell 5,864 4,548 1,316 4,217 880 418 249 73 26 165 Total loans 120,814 89,170 31,643 76,760 4,935 23,936 6,894 4,212 4,077 166 Loans to banks in foreign countries 19,182 15,002 4,180 14,034 716 3,246 761 11 413 167 Total deposits and credit balances 90,043 77,880 12,162 69,842 3,718 7,667 2,329 4,989 1,497 168 Time CDs in denominations of $100,000 or more 31,605 30,070 1,535 24,429 11 927 745 4,616 877 169 Federal funds purchased and securities sold under agreements to repurchase 20,206 13,542 6,664 11,927 1,090 4,572 1,164 327 1,127 170 Other liabilities for borrowed money 46,966 20,690 26,276 18,849 1,783 24,031 1,162 595 546 171 Number of reports filed8 420 230 190 140 44 113 43 33 47 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, footnote 6). On the former monthly branch and agency report, available through "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign the G.ll statistical release, gross balances were included in total assets and total Banks." This form was first used for reporting data as of June 30, 1980. From liabilities. Therefore, total asset and total liability figures in this table are not November 1972 through May 1980, U.S. branches and agencies of foreign banks comparable to those in the G.ll tables. had filed a monthly FR 886a report. Aggregate data from that report were 6. "Related banking institutions" includes the foreign head office and other available through the Federal Reserve statistical release G.ll, last issued on July U.S. and foreign branches and agencies of the bank, the bank's parent holding 10, 1980. Data in this table and in the G.ll tables are not strictly comparable company, and majority-owned banking subsidiaries of the bank and of its parent because of differences in reporting panels and in definitions of balance sheet holding company (including subsidiaries owned both directly and indirectly). items. Gross amounts due from and due to related banking institutions are shown as 2. Includes the District of Columbia. memo items. 3. Includes all offices that have the power to accept deposits from U.S. 7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityresidents, including any such offices that are considered agencies under state law. owned by the foreign bank and by related foreign banks and includes U.S. offices 4. Agencies account for virtually all of the assets and liabilities reported in of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, California. and of New York State (Article XII) investment companies. 5. Total assets and total liabilities include net balances, if any, due from or due 8. In some cases two or more offices of a foreign bank within the same to related banking institutions in the United States and in foreign countries (see metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH 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 STANLEY J. SIGEL, Assistant to the Board WILLIAM R. JONES, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel JOSEPH S. ZEISEL, Deputy Director J. VIRGIL MATTINGLY, JR., Associate General Counsel MICHAEL J. PRELL, Senior Associate Director GILBERT T. SCHWARTZ, Associate General Counsel JARED J. ENZLER, Associate Director RICHARD M. ASHTON, Assistant General Counsel DONALD L. KOHN, Associate Director NANCY P. JACKLIN, Assistant General Counsel ELEANOR J. STOCKWELL, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel DAVID E. LINDSEY, Deputy Associate Director FREDERICK M. STRUBLE, Deputy Associate Director HELMUT F. WENDEL, Deputy Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Assistant Director ROBERT M. FISHER, Assistant Director WILLIAM W. WILES, Secretary SUSAN J. LEPPER, Assistant Director BARBARA R. LOWREY, Associate Secretary THOMAS D. SIMPSON, Assistant Director JAMES MCAFEE, Associate Secretary LAWRENCE SLIFMAN, Assistant Director STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, Assistant Director DIVISION OF CONSUMER LEVON H. GARABEDIAN, Assistant Director AND COMMUNITY AFFAIRS (Administration) GRIFFITH L. GARWOOD, Director JERAULD C. KLUCKMAN, Associate Director DIVISION OF INTERNATIONAL FINANCE GLENN E. LONEY, Assistant Director DOLORES S. SMITH, Assistant Director EDWIN M. TRUMAN, Director ROBERT F. GEMMILL, Senior Associate Director CHARLES J. SIEGMAN, Senior Associate Director DIVISION OF BANKING LARRY J. PROMISEL, Associate Director SUPERVISION AND REGULATION DALE W. HENDERSON, Deputy Associate Director SAMUEL PIZER, Staff Adviser JOHN E. RYAN, Director MICHAEL P. DOOLEY, Assistant Director WILLIAM TAYLOR, Deputy Director RALPH W. SMITH, JR., Assistant Director FREDERICK R. DAHL, Associate Director DON E. KLINE, Associate Director JACK M. EGERTSON, Assistant Director ROBERT A. JACOBSEN, Assistant Director ROBERT S. PLOTKIN, Assistant Director THOMAS A. SIDMAN, Assistant Director SIDNEY M. SUSSAN, Assistant Director SAMUEL H. TALLEY, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 and Official Staff NANCY H. TEETERS LYLE E. GRAMLEY EMMETT J. RICE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES S. DAVID FROST, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Equal Employment Opportunity Programs Adviser DIVISION OF DATA PROCESSING DIVISION OF FEDERAL RESERVE CHARLES L. HAMPTON, Director BANK OPERATIONS BRUCE M. BEARDSLEY, Deputy Director GLENN L. CUMMINS, Assistant Director CLYDE H. FARNSWORTH, JR., Director NEAL H. HILLERMAN, Assistant Director DAVID L. ROBINSON, Associate Director ELIZABETH A. JOHNSON, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director WILLIAM C. SCHNEIDER, JR., Assistant Director WALTER ALTHAUSEN, Assistant Director ROBERT J. ZEMEL, Assistant Director CHARLES W. BENNETT, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director DIVISION OF PERSONNEL RICHARD B. GREEN, Assistant Director EARL G. HAMILTON, Assistant Director DAVID L. SHANNON, Director ELLIOTT C. MCENTEE, Assistant Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES DONALD E. ANDERSON, Director ROBERT E. FRAZIER, Associate Director WALTER W. KREIMANN, Associate Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • August 1983 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman LYLE E. GRAMLEY PRESTON MARTIN EMMETT J. RICE ROGER GUFFEY FRANK E. MORRIS THEODORE H. ROBERTS SILAS KEEHN J. CHARLES PARTEE NANCY H. TEETERS HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director and Secretary RICHARD G. DAVIS, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary THOMAS E. DAVIS, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary ROBERT EISENMENGER, Associate Economist MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist JAMES L. KICHLINE, Economist KARL A. SCHELD, Associate Economist EDWIN M. TRUMAN, Economist (International) CHARLES J. SIEGMAN, Associate Economist ANATOL BALBACH, 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 RONALD TERRY, Eighth District, President WILLIAM S. EDGERLY, First District, Vice President LEWIS T. PRESTON, Second District ROGER E. ANDERSON, Seventh District JOHN H. WALTHER, Third District E. PETER GILLETTE, JR., Ninth District JOHN G. MCCOY, Fourth District N. BERNE HART, Tenth District VINCENT C. BURKE, JR., Fifth District T.C. FROST, JR., Eleventh District PHILIP F. SEARLE, Sixth District JOSEPH J. PINOLA, Twelfth District HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL SUSAN PIERSON DE WITT, Chicago, Illinois, Chairman WILLIAM J. O'CONNOR, JR., Buffalo, New York, Vice Chairman ARTHUR F. BOUTON, Little Rock, Arkansas KENNETH V. LARKIN, San Francisco, California JAMES G. BOYLE, Austin, Texas TIMOTHY D. MARRINAN, Minneapolis, Minnesota GERALD R. CHRISTENSEN, Salt Lake City, Utah STANLEY L. MULARZ, Chicago, Illinois THOMAS L. CLARK, JR., New York, New York WILLARD P. OGBURN, Boston, Massachusetts JEAN A. CROCKETT, Philadelphia, Pennsylvania ELVA QUIJANO, San Antonio, Texas JOSEPH N. CUGINI, Westerly, Rhode Island JANET J. RATHE, Portland, Oregon MEREDITH FERNSTROM, New York, New York JANET M. SCACCIOTTI, Providence, Rhode Island ALLEN J. FISHBEIN, Washington, D.C. GLENDA G. SLOANE, Washington, D.C. E.C.A. FORSBERG, SR., Atlanta, Georgia HENRY J. SOMMER, Philadelphia, Pennsylvania LUTHER R. GATLING, New York, New York NANCY Z. SPILLMAN, LOS Angeles, California RICHARD F. HALLIBURTON, Kansas City, Missouri WINNIE F. TAYLOR, Gainesville, Florida CHARLES C. HOLT, Austin, Texas MICHAEL M. VAN BUSKIRK, Columbus, Ohio GEORGE S. IRVIN, Denver, Colorado CLINTON WARNE, Cleveland, Ohio HARRY N. JACKSON, Minneapolis, Minnesota FREDERICK T. WEIMER, Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Officer in charge branch, or facility Zip Deputy Chairman First Vice President of branch or facility BOSTON* 02106 Robert P. Henderson Frank E. Morris Thomas I. Atkins James A. Mcintosh NEW YORK* 10045 John Brademas Anthony M. Solomon Gertrude G. Michelson Thomas M. Timlen Buffalo 14240 M. Jane Dickman John T. Keane PHILADELPHIA 19105 Robert M. Landis, Esq. Edward G. Boehne Nevius M. Curtis Richard L. Smoot CLEVELAND* 44101 J.L.Jackson Karen N. Horn William H. Knoell William H. Hendricks Cincinnati 45201 Clifford R. Meyer Robert E. Showalter Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 Steven Muller Robert P. Black William S. Lee, III Jimmie R. Monhollon Baltimore 21203 Edward H. Covell Robert D. McTeer, Jr. Charlotte 28230 Dr. Henry Ponder Albert D. Tinkelenberg Culpeper Communications John G. Stoides and Records Center 22701 ATLANTA 30301 William A. Fickling, Jr. William F. Ford John H. Weitnauer, Jr. Robert P. Forrestal Birmingham 35283 Samuel R. Hill, Jr. Fred R. Herr Jacksonville 32231 Joan W. Stein Charles D. East Miami 33152 Eugene E. Cohen Patrick K. Barron Nashville 37203 Robert C. H. Mathews, Jr. Jeffrey J. Wells New Orleans 70161 Roosevelt Steptoe 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 W.L. Hadley Griffin Theodore H. Roberts Mary P. Holt Little Rock 72203 Richard V. Warner John F. Breen Louisville 40232 William C. Ballard, Jr. James E. Conrad Memphis 38101 G. Rives Neblett Randall C. Sumner MINNEAPOLIS 55480 William G. Phillips E. Gerald Corrigan John B. Davis, Jr. Thomas E. Gainor Helena 59601 Gene J. Etchart Robert F. McNellis KANSAS CITY 64198 Paul H. Henson Roger Guffey Doris M. Drury Henry R. Czerwinski Denver 80217 James E. Nielson 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 Chester J. Kesey Joel L. Koonce, Jr. Houston 77252 Paul N. Howell J.Z. Rowe San Antonio 78295 Carlos Zuniga Thomas H. Robertson SAN FRANCISCO 94120 Caroline L. Ahmanson John J. Balles Alan C. Furth Richard T. Griffith Los Angeles 90051 Bruce M. Schwaegler Richard C. Dunn Portland 97208 John C. Hampton Angelo S. Carella Salt Lake City 84125 Wendell J. Ashton A. Grant Holman Seattle 98124 John W. Ellis Gerald R. Kelly •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, payable to the order of the Board of Governors of the Federal Mail Stop 138, Board of Governors of the Federal Reserve Reserve System. Remittance from foreign residents should System, Washington, D.C. 20551. When a charge is indicat- be drawn on a U.S. bank. Stamps and coupons are not ed, remittance should accompany request and be made accepted. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. TIONS. 1974. 125 pp. Parts 2 and 3, $1.00 each; 10 or more to one address, $.85 ANNUAL REPORT. each. OPEN MARKET POLICIES AND OPERATING PROCEDURES— FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to $2.00 each in the United States, its possessions, Canada, one address, $1.75 each. and Mexico; 10 or more of same issue to one address, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- $18.00 per year or $1.75 each. Elsewhere, $24.00 per NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. year or $2.50 each. 1972. 220 pp. Each Volume $3.00; 10 or more to one BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint address, $2.50 each. of Part I only) 1976. 682 pp. $5.00. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- BANKING AND MONETARY STATISTICS. 1941-1970. 1976. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 pp. Cloth ed. $5.00 each; 10 or more to one address, 1,168 pp. $15.00. $4.50 each. Paper ed. $4.00 each; 10 or more to one ANNUAL STATISTICAL DIGEST address, $3.60 each. 1971-75. 1976. 339 pp. $5.00 per copy. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1972-76. 1977. 377 pp. $10.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1973-77. 1978. 361 pp. $12.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1974-78. 1980. 305 pp. $10.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1970-79. 1981. 587 pp. $20.00 per copy. 1973. 271 pp. $3.50 each; 10 or more to one address, 1980. 1981. 241 pp. $10.00 per copy. $3.00 each. 1981. 1982. 239 pp. $ 6.50 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. Subscripvolume $1.00; 10 or more of same volume to one tion to the Federal Reserve Chart Book includes one address, $.85 each. issue. $1.25 each in the United States, its possessions, FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY Canada, and Mexico; 10 or more to one address, $1.00 UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one each. 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 April 20, $3.75 each. 1983, with an appendix containing provisions of certain 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. other statutes affecting the Federal Reserve System. 576 FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 pp. $7.00. each; 10 or more to one address, $1.50 each. INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- 10 or more to one address, $1.25 each. ERAL RESERVE SYSTEM. PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY $13.50 each. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- 48 pp. $.25 each; 10 or more to one address, $.20 each. SERVE STAFF STUDY, 1981. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ERNMENT SECURITIES MARKET; STAFF STUDIES—PART REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- STAFF STUDIES: Summaries Only Printed in the ed at least monthly. (Requests must be prepaid.) Bulletin Consumer and Community Affairs Handbook. $60.00 per Studies and papers on economic and financial subjects year. that are of general interest. Requests to obtain single copies Monetary Policy and Reserve Requirements Handbook. of the full text or to be added to the mailing list for the series $60.00 per year. may be sent to Publications Services. Securities Credit Transactions Handbook. $60.00 per year. Federal Reserve Regulatory Service. 3 vols. (Contains all 113. BELOW THE BOTTOM LINE: THE USE OF CONTINGENthree Handbooks plus substantial additional material.) CIES AND COMMITMENTS BY COMMERCIAL BANKS, by $175.00 per year. Benjamin Wolkowitz and others. Jan. 1982. 186 pp. Rates for subscribers outside the United States are as 114. MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE follows and include additional air mail costs: ON COMPETITION AND PERFORMANCE IN BANKING Federal Reserve Regulatory Service, $225.00 per year. MARKETS, by Timothy J. Curry and John T. Rose. Jan. Each Handbook, $75.00 per year. 1982. 9 pp. WELCOME TO THE FEDERAL RESERVE, DECEMBER 1982. 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- UCT MIX IN THE U.S. PAYMENTS MECHANISM, by CATIONS David B. Humphrey. Apr. 1982. 18 pp. SUSTAINABLE RECOVERY: SETTING THE STAGE, November 116. DIVISIA MONETARY AGGREGATES: COMPILATION, 1982. DATA, AND HISTORICAL BEHAVIOR, by William A. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL Barnett and Paul A. Spindt. May 1982. 82 pp. HUMAN RELATIONS AWARD DINNER, December 1982. 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION ALLOCATION, by Glenn Canner. June 1982. 8 pp. CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- 118. INTEREST RATES AND TERMS ON CONSTRUCTION CISCO, March 1983. LOANS AT COMMERCIAL BANKS, by David F. Seiders. RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. July 1982. 14 pp. VOLCKER, April 1983. 119. STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON UPDATED SUMMARY AND EVALUATION, by Stephen A. COSTS, PRICES, AND RETAIL SALES. July 1983. 114 pp. Rhoades. Aug. 1982. 15 pp. 120. FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZA- TIONS, by James V. Houpt and Michael G. Martinson. Oct. 1982. 18 pp. CONSUMER EDUCATION PAMPHLETS 121. REDLINING: RESEARCH AND FEDERAL LEGISLATIVE Short pamphlets suitable for classroom use. Multiple RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. copies available without charge. 122. BANK CAPITAL TRENDS AND FINANCING, by Samuel H. Talley. Feb. 1983. 19 pp. Alice in Debitland 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING Consumer Handbook to Credit Protection Laws COMPANIES, by John T. Rose and Samuel H. Talley. The Equal Credit Opportunity Act and . . . Age May 1983. 11 pp. The Equal Credit Opportunity Act and . . . Credit Rights in 124. INTERNATIONAL BANKING FACILITIES AND THE EURO- Housing DOLLAR MARKET, by Henry S. Terrell and Rodney H. The Equal Credit Opportunity Act and . . . Doctors, Mills. August 1983. 14 pp. Lawyers, Small Retailers, and Others Who May Provide 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY Incidental Credit AGGREGATES: A MODEL-BASED APPROACH, by David The Equal Credit Opportunity Act and . . . Women A. Pierce, Michael R. Grupe, and William P. Cleveland. Fair Credit Billing August 1983. 23 pp. Federal Reserve Glossary Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint If You Borrow To Buy Stock REPRINTS OF BULLETIN ARTICLES 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 Perspectives on Personal Saving. 8/80. The Federal Open Market Committee Federal Reserve and the Payments System: Upgrading Federal Reserve Bank Board of Directors Electronic Capabilities for the 1980s. 2/81. Federal Reserve Banks Survey of Finance Companies, 1980. 5/81. Monetary Control Act of 1980 Bank Lending in Developing Countries. 9/81. Organization and Advisory Committees The Commercial Paper Market since the Mid-Seventies. 6/82. Truth in Leasing Applying the Theory of Probable Future Competition. 9/82. U.S. Currency International Banking Facilities. 10/82. What Truth in Lending Means to You U.S. International Transactions in 1982. 4/83. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Index to Statistical Tables References are to pages A3 through A79 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 11, 26, 28 Demand deposits—Continued Agricultural loans, commercial banks, 19, 20, 21, 27 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 25 Banks, by classes, 18, 19-22, 70-75 Turnover, 15 Domestic finance companies, 39 Depository institutions Federal Reserve Banks, 12 Reserve requirements, 8 Foreign banks, U.S. branches and agencies, 23, 76-79 Reserves and related items, 3, 4, 5, 13 Nonfinancial corporations, 38 Deposits (See also specific types) Savings institutions, 30 Banks, by classes, 3, 18, 19-22, 30, 71, 73, 75 Automobiles Federal Reserve Banks, 4, 12 Consumer installment credit, 42, 43 Turnover, 15 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS balances, 18, 19-21, 70, 72, 74 Discounts and advances by Reserve Banks (See Loans) (See also Foreigners) Dividends, corporate, 37 Banks for Cooperatives, 35 Bonds (See also U.S. government securities) New issues, 36 EMPLOYMENT, 46, 47 Rates, 3 Eurodollars, 28 Branch banks, 16, 22-23, 56, 76-79 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, 11, 12, 13, 34 Federal credit agencies, 35 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 18, 71, 73, 75 ownership of gross debt, 33 Federal Reserve Banks, 12 Receipts and outlays, 31, 32 Central banks, 67 Treasury financing of surplus, or deficit, 31 Certificates of deposit, 22, 28 Treasury operating balance, 31 Commercial and industrial loans Federal Financing Bank, 31, 35 Commercial banks, 16, 18, 23, 27, 70, 72, 74, 76 Federal funds, 3, 6, 19, 20, 21, 28, 31 Weekly reporting banks, 19-23, 24 Federal Home Loan Banks, 35 Commercial banks Federal Home Loan Mortgage Corporation, 35, 40, 41 Assets and liabilities, 18, 19-22, 70-75 Federal Housing Administration, 35, 40, 41 Business loans, 27 Federal Intermediate Credit Banks, 35 Commercial and industrial loans, 16, 18, 23, 24, 27 Federal Land Banks, 35, 41 Consumer loans held, by type, 42, 43 Federal National Mortgage Association, 35, 40, 41 Loans sold outright, 22 Federal Reserve Banks Nondeposit fund, 17 Condition statement, 12 Number, by classes, 18, 71, 73, 75 Discount rates (See Interest rates) Real estate mortgages held, by holder and property, 41 U.S. government securities held, 4, 12, 13, 33 Time and savings deposits, 3 Federal Reserve credit, 4, 5, 12, 13 Commercial paper, 3, 26, 28, 39 Federal Reserve notes, 12 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 35 Construction, 46, 50 Finance companies Consumer installment credit, 42, 43 Assets and liabilities, 39 Consumer prices, 46, 51 Business credit, 39 Consumption expenditures, 52, 53 Loans, 19, 20, 21, 42, 43 Corporations Paper, 26, 28 Profits and their distribution, 37 Financial institutions Security issues, 36, 66 Loans to, 19, 20, 21 Cost of living (See Consumer prices) Selected assets and liabilities, 30 Credit unions, 30, 42, 43 Float, 4 (See also Thrift institutions) Flow of funds, 44, 45 Currency and coin, 5, 18, 70, 72, 74 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 14 agencies, 23, 76-79 Customer credit, stock market, 29 Foreign currency operations, 12 Foreign deposits in U.S. banks, 4 12, 19, 20, 21 DEBITS to deposit accounts, 15 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 55 Demand deposits Foreigners Adjusted, commercial banks, 15 Claims on, 56, 58, 61, 62, 63, 65 Banks, by classes, 18, 19-22, 71, 73, 75 Liabilities to, 22, 55, 56-60, 64, 66, 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 GOLD REAL estate loans Certificate account, 12 Banks, by classes, 19-21, 41 Stock, 4, 55 Rates, terms, yields, and activity, 3, 40 Government National Mortgage Association, 35, 40, 41 Savings institutions, 28 Gross national product, 52, 53 Type of holder and property mortgaged, 41 Repurchase agreements and federal funds, 6, 19, 20, 21 HOUSING, new and existing units, 50 Reserve requirements, 8 Reserves INCOME, personal and national, 46, 52, 53 Commercial banks, 18, 71 Industrial production, 46, 48 Depository institutions, 3, 4, 5, 13 Installment loans, 42, 43 Federal Reserve Banks, 12 Insurance companies, 30, 33, 41 U.S. reserve assets, 55 Insured commercial banks, 70-75 Residential mortgage loans, 40 Interbank loans and deposits, 18 Retail credit and retail sales, 42, 43, 46 Interest rates Bonds, 3 SAVING Business loans of banks, 27 Flow of funds, 44, 45 Federal Reserve Banks, 3, 7 National income accounts, 53 Foreign central banks and foreign countries, 67 Savings and loan association, 9, 30, 41, 42, 43, 44 (See also Money and capital markets, 3, 28 Thrift institutions) Mortgages, 3, 40 Savings deposits (See Time and savings deposits) Prime rate, commercial banks, 27 Securities (See specific types) Time and savings deposits, 9 Federal and federally sponsored credit agencies, 35 International banking facilities, 17 Foreign transactions, 66 International capital transactions of United States, 54-67 New issues, 36 International organizations, 58, 59-61, 64-67 Prices, 29 Inventories, 52 Special drawing rights, 4, 12, 54, 55 Investment companies, issues and assets, 37 State and local governments Investments (See also specific types) Deposits, 19, 20, 21 Banks, by classes, 18, 30 Holdings of U.S. government securities, 33 Commercial banks, 3, 16, 18, 19-21, 70, 72 New security issues, 36 Federal Reserve Banks, 12, 13 Ownership of securities issued by, 19, 20, 21, 30 Savings institutions, 30, 41 Rates on securities, 3 Stock market, 29 LABOR force, 47 Stocks (See also Securities) Life insurance companies {See Insurance companies) New issues, 36 Loans (See also specific types) Prices, 29 Banks, by classes, 18, 19—22 Commercial banks, 3, 16, 18, 19-22, 23, 27, 70, 72, 74 Federal Reserve Banks, 3, 4, 5, 7, 12, 13 TAX receipts, federal, 32 Insured or guaranteed by United States, 40, 41 Thrift institutions, 3 (See also Credit unions, Mutual Savings institutions, 30, 41 savings banks and, Savings and loan associations) Time and savings deposits, 3, 9, 15, 18, 19-22, 71, 73, 75 MANUFACTURING Trade, foreign, 55 Capacity utilization, 46 Treasury currency, Treasury cash, 4 Production, 46, 49 Treasury deposits, 4, 12, 31 Margin requirements, 29 Treasury operating balance, 31 Member banks (See also Depository institutions) Federal funds and repurchase agreements, 6 UNEMPLOYMENT, 47 Reserve requirements, 8 U.S. government balances Mining production, 49 Commercial bank holdings, 19, 20, 21 Mobile home shipments, 50 Treasury deposits at Reserve Banks, 4, 12, 31 Monetary and credit aggregates, 3, 13 U.S. government securities Money and capital market rates (See Interest rates) Bank holdings, 18, 19-21, 33, 70, 72, 74 Money stock measures and components, 3, 14 Dealer transactions, positions, and financing, 34 Mortgages (See Real estate loans) Federal Reserve Bank holdings, 4, 12, 13, 33 Mutual funds (See Investment companies) Foreign and international holdings and transactions, 12, Mutual savings banks, 9, 19-21, 30, 33, 41, 42, 43 (See also 33, 67 Thrift institutions) Open market transactions, 11 Outstanding, by type and ownership, 33 NATIONAL defense outlays, 32 Ownership of securities issued by, 30 National income, 52 Rates, 3, 28 U.S. international transactions, 54-67 OPEN market transactions, 11 Utilities, production, 49 PERSONAL income, 53 Prices VETERANS Administration, 40, 41 Consumer and producer, 46, 51 Stock market, 29 WEEKLY reporting banks, 19-24 Prime rate, commercial banks, 27 Wholesale (producer) prices, 46, 51 Producer prices, 46, 51 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis