Federal Reserve Bulletin, 1983-11

VOLUME 69 • NUMBER 11 • NOVEMBER 1983 FEDERAL RESERVE B U L L E T IN 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 823 FEDERAL AND STATE LAWS ON 846 J. Charles Partee, Member, Board of Gov- CONSUMER FINANCIAL SERVICES: ernors, gives the views of the Board on THE DOCTRINE OF PREEMPTION proposals to permit the payment of interest on demand deposits and says that the Board The relationship of federal and state laws supports repeal of the existing prohibition governing consumer financial services and on such interest payments, before the the way the doctrine of federal preemption House Committee on Banking, Finance and operates in this area is analyzed. Urban Affairs, October 27, 1983. 830 INTERVENTION IN FOREIGN EXCHANGE 853 ANNOUNCEMENTS MARKETS: A SUMMARY OF TEN STAFF STUDIES Approval of new fee schedules for the check collection services of the Federal Ten staff studies, including case studies, Reserve Banks in 1984, effective December surveys of the literature, and econometric 1, 1983. analyses, focus on the question of whether sterilized intervention can have significant Amendments to Regulation L. effects on exchange rates; these studies Proposed revision to procedure for calculatprovided the background for the April 1983 ing the private sector adjustment factor Report of the Working Group on Exchange (PSAF); proposed changes in Regulation O; Market Intervention. proposed revision of Regulation X. 837 INDUSTRIAL PRODUCTION New date for compliance with newly revised Regulation T. Output rose about 0.8 percent in October. Expansion of quarterly subscription tapes for reports of condition and income. 839 STATEMENTS TO CONGRESS r Admission of six state banks to membership Paul A. Volcker, Chairman, Board of Govin the Federal Reserve System. ernors, presents the views of the Board on several bills of importance for the structure 856 LEGAL DEVELOPMENTS and functioning of the Federal Reserve including the "Federal Reserve Moderniza- Amendments to Regulations D and Q; varition Act," which provides for the compila- ous bank holding company and bank merger tion and publication of detailed minutes of orders; and pending cases. Federal Open Market Committee meetings, before the House Committee on Banking, AI FINANCIAL AND BUSINESS STATISTICS Finance and Urban Affairs, October 18, A3 Domestic Financial Statistics 1983. A44 Domestic Nonfinancial Statistics 842 Chairman Volcker discusses the current A52 International Statistics economic situation and updates the official monetary policy report submitted to the A67 GUIDE TO TABULAR PRESENTATION, Congress in mid-July, before the Joint Eco- STATISTICAL RELEASES, AND SPECIAL nomic Committee, October 20, 1983. TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 BOARD OF GOVERNORS AND STAFF A74 INDEX TO STATISTICAL TABLES A70 FEDERAL OPEN MARKET COMMITTEE A76 FEDERAL RESERVE BANKS, BRANCHES, AND STAFF; ADVISORY COUNCILS AND OFFICES A72 FEDERAL RESERVE BOARD All MAP OF FEDERAL RESERVE SYSTEM PUBLICATIONS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal and State Laws on Consumer Financial Services: TheDoctrine ofPreemption This article was prepared by Rugenia Silver, with preemption operates in this area. The analysis the assistance of other attorneys in the Division concentrates on those titles of the Consumer of Consumer and Community Affairs. Credit Protection Act for which the Federal Reserve Board has rulewriting authority be- Over the past decade, both the federal govern- cause, along with that authority, the Board has ment and the individual states have extensively special responsibility for determining whether regulated consumer financial services. While the state laws are preempted by the federal legislastates have traditionally occupied this field— tion. This article discusses the doctrine of federal setting usury limits, establishing permissible con- preemption, the Board's role in implementing the tract provisions, and providing other consumer preemption standards prescribed by the Conprotections—the federal government has become gress, and some problems associated with dual increasingly involved by regulating areas such as legislation. It also presents suggestions for develcredit disclosures, billing practices, consumer oping an alternative preemption standard. leasing transactions, electronic fund transfers, mortgage rates, and mortgage instruments. With the passage of each federal act and WHAT IS PREEMPTION? regulation, differences arise between the federal law and state laws on the same subject matter. Federal preemption means that by operation of Although sometimes minor, these differences constitutional law, federal law overrides state may complicate compliance and confuse con- law in a given field. The override may take one of sumers. For example, federal law gives a con- two forms: the federal law may nullify the state sumer 60 days to assert a billing error, starting law for all purposes, or it may render the state from the date a periodic statement was sent by law inapplicable under limited circumstances. the creditor. Some state laws give the consumer The doctrine of preemption was developed by 60 days from the time the statement was re- the U.S. Supreme Court early in the nation's ceived. Similarly, some state laws require the history to delineate the proper relationship beinclusion of application fees in the "finance tween federal and state law in areas in which charge" in disclosing the cost of credit; federal both levels of government have jurisdiction. The law requires their exclusion. Are both laws appli- doctrine derives from the supremacy clause in cable as long as a creditor can comply with both the Constitution, which declares that the laws of without violating either? Or has federal entry the United States shall be the supreme law of the into the field had the effect of nullifying state land. Under early Supreme Court interpretations action? of the supremacy clause, once the federal gov- The Congress in most instances has provided ernment regulated a given subject, any state law that state legislation governing consumer finan- regulating the same subject was superseded and cial services continue to coexist with federal law, became invalid. The Congress was assumed to and it has set standards for determining whether have completely occupied that field of legislafederal law has preempted similar state law. This tion, precluding any state involvement. article will consider the relationship of federal More recent decisions of the Supreme Court and state laws governing consumer financial recognize that the Congress itself may permit services and the way the doctrine of federal state law to coexist with the federal law. In these Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • November 1983 interpretations, the Supreme Court has devel- FEDERAL AND STATE INVOLVEMENT oped a two-step analysis for applying the preemption doctrine. The first step involves The Truth in Lending Act, passed in 1968, was establishing whether the Congress has so com- the first in a series of federal laws to address prehensively occupied a certain field, either ex- consumer concerns relating to financial services. pressly or by implication, that it precludes any Its goal was simple: to inform consumers about state regulation of the same subject matter. Some the cost of their credit transactions and thereby of the factors considered by the Court in deter- to facilitate comparison shopping among various mining congressional intent are the dominance of credit sources. When Truth in Lending was federal interest in the field; the completeness of adopted, however, the Congress did not anticithe federal scheme of legislation; the interest in pate extensive federal involvement in the area of uniform national regulation; the extent to which consumer financial services. As the legislative the subject matter has traditionally been regulat- history makes clear, the Congress not only pered by state law; and the Congress' own expres- mitted state legislation on credit disclosures to sion of its intent to occupy the field. coexist with federal law, but also expressed the When the Congress has acted to regulate a hope that the states eventually would take over field completely, the Court has applied the pre- the field so that federal legislation could be emption doctrine to invalidate all state regulation reduced to a minimum. in that field, even if the state law does not In the next decade, however, the Congress conflict with the federal law—and even if the expanded its lawmaking in the area of consumer state law was intended to complement the federal financial services. Although Truth in Lending law. The rationale is that the federal law is was initially intended to govern disclosure of pervasive, leaving no room for state regulation. credit costs, amendments expanded its scope to If, on the other hand, the Court determines include rules governing the issuance of credit that the Congress has not precluded state regula- cards, liability for their unauthorized use, and tion, the second step of the analysis is to deter- resolution of billing errors. In addition, the Conmine whether any aspect of the corresponding gress enacted other consumer protection statstate law conflicts with the federal law. If so, the utes, such as the Equal Credit Opportunity Act, state law must yield. But because this analysis is which bars discrimination on certain bases in the applied when the Congress is deemed to have granting of credit; the Consumer Leasing Act, contemplated coexisting state legislation, the which requires disclosure of lease terms; and the Court has said that only those parts of state law Electronic Fund Transfer Act, which governs the that actually conflict with federal law will be rights and responsibilities of consumers and fipreempted. The most obvious case for invalidat- nancial institutions engaged in electronic transing a state law involves a provision that on its fers. face plainly contradicts a federal statute. For Over the years, state involvement in the variexample, if the state statute authorizes conduct ous aspects of consumer financial services also expressly forbidden by federal law, the suprema- grew. Some states have legislated extensively; cy clause dictates that federal law prevail. others have remained relatively silent. In some In the case of the federal laws that apply to areas, such as credit disclosures, the states have consumer financial services, the Congress in- always been active, while in electronic banking, tended for the federal and state laws to coexist. It among other areas, they have mostly left regulamade this intention clear by explicitly limiting tion to the federal government or have relied on the preemptive effect of the federal statutes when voluntary compliance with industry standards of there is state legislation on the same subject. conduct. Thus the question is not whether the federal When states have chosen to regulate, the scheme will occupy the field, but how the federal scope and substance of state laws also have and state provisions can be made to fit together. differed widely. Some state disclosure laws, for Such coordination is necessary because of the instance, contain more requirements or more significant involvement of the federal and state stringent ones than do the federal Truth in Lendgovernments in this area. ing Act and the Federal Reserve Board's Regula- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal and State Laws on Consumer Financial Services: The Doctrine of Preemption 825 tion Z; other laws provide for significantly fewer on state law. In the Truth in Lending Act, the or less detailed disclosures than the federal law Congress has set out a single standard, with one does. Similarly, some state laws on electronic important modification, to indicate the state laws fund transfers apply to the same types of trans- that are preempted. A state law is preempted if it fers, and require basically the same disclosure of is "inconsistent" with the federal law. This terms and conditions, as do the Electronic Fund single word summarizes the congressional test to Transfer Act and the Board's Regulation E; be applied in determining whether the federal law other states have imposed less comprehensive has made the state law inapplicable. coverage and fewer disclosures. As another ex- The modification of this test applies to proviample, a number of states prohibit creditors from sions of the consumer protection laws that deal taking certain factors into account in the granting with the substantive rights of consumers and not of credit; some also identify specific creditor the simple disclosure of information. Under the practices as discriminatory and prohibit them, modified test, a state law is not preempted if it is but do not list all of the practices barred by the "more protective" of the consumer than is the federal Equal Credit Opportunity Act and the comparable federal provision. For example, a Board's Regulation B. law that allows consumers a longer period in Given the wide range of state laws governing which to assert billing errors is "more protecconsumer financial services, it probably is inev- tive" because it gives the consumer more time to itable that some of them set forth requirements act; therefore it stands even though it is inconsisbeyond those mandated by the Congress—and tent with the federal law. inevitable that some are inconsistent with the federal regulatory scheme. Defining the "Inconsistency" Standard THE BOARD'S ROLE: DELINEATING In revising Regulation Z to implement the Truth THE FEDERAL-STATE RELATIONSHIP in Lending Simplification and Reform Act of 1980, the Board was faced with defining the basic Traditionally, the determination as to whether a standard of inconsistency, a task that raised both state law conflicts with, and is therefore super- practical and policy considerations. seded by, a corresponding federal law has been The term "inconsistency" itself may be deviewed as the proper function of the courts. fined in many ways, with widely varying effects However, in the statutes covering consumer on state law. For example, if an inconsistent law financial services, the Congress has assigned to is defined as one that differs from the federal law, the Federal Reserve Board the responsibility for then all state laws relating to consumer credit establishing the proper relationship between disclosures will be preempted except the few that what the Congress prescribes and what the states are identical to the federal act. At the other fashion. The Board discharges this responsibility extreme, if inconsistency is defined as clear in two ways: it explains the congressional stan- conflict with the federal law, then only those dards of preemption in its regulations, and it state laws that flatly contradict the federal law applies those standards to individual state laws will be preempted. through formal preemption determinations. The These two options, and a range of others, all Congress actually preempts the state laws that had their advocates among the commenters in are inconsistent with the federal law; the Board the course of the Board's revision of Regulation simply clarifies which laws the Congress has Z. For the most part, representatives of the preempted. industry urged a sweeping preemption of state laws, citing the burdens of compliance and the potential confusion associated with dual legislation. Consumer groups generally favored the The Statutory Standard: "Inconsistency" preservation of as much state law as possible, in Each law on consumer financial services that is the belief that consumers would thus be assured administered by the Board contains limitations of the greatest protection. Not surprisingly, state Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • November 1983 officials also supported a position that would major task: to examine state laws to determine preserve virtually all state law in the field. whether they contradict the federal law. This Though limited, the legislative history on the task—which the Board performs in response to preemption provision made it clear that the Con- requests by creditors, states, or other interested gress envisioned a narrow impact on state laws parties—has proved to be even more complex regarding consumer credit. The statute itself than that of defining the standard. reflected a general intent for most state laws to In the past year, the Board has made preempcoexist with federal law. Supporting legislative tion determinations under the Truth in Lending history also evidenced the congressional intent Act regarding disclosure provisions in the laws of that the standard of inconsistency be narrowly eight states. This process has refined the "conapplied. Consequently, the Board concluded that tradiction" standard applied by the Board in the more sweeping preemption standard es- analyzing and comparing state laws with federal poused by some commenters clearly would not law. For example, the Board reviewed a provicarry out the congressional purpose. There re- sion in Arizona's law that requires a disclosure of mained, however, a variety of potential defini- the finance charge. The state law requires the use tions from which to choose. of the term "finance charge," as does the federal Ultimately, the Board determined that incon- law. In some cases, however, the amount may be sistency requires the finding of a conflict with the different because the state requires insurance federal law. The definition adopted by the Board costs to be included in the finance charge, wherein revised Regulation Z deemed a state law to be as under the federal law such costs may be inconsistent with the federal law if it required a excluded if certain conditions are met. In those creditor to provide disclosures or take actions cases, the Board found the state law to be that contradict the federal law. Two provisions preempted because it requires the use of the in the regulation explain the meaning of contra- same term as the federal law, but the amounts diction. Under the first provision, a state law the term represents differ. contradicts the federal law if it prescribes the use The Board's action regarding a Missouri law of the same term as the federal law to represent a illustrates the limited displacement of state law. meaning or an amount different from the one The Missouri law required creditors to give cerdisclosed under federal law. To illustrate: Regu- tain notices to the buyer, using the terms "time lation Z requires the disclosure of the "finance price differential" and "time charge." The charge"—which measures the dollar cost of Board found that those terms were preempted by credit in a manner specified by the regulation— the federal law, and could not be used either in and also requires use of that term. If a state law the disclosure of credit cost or in the separately also requires disclosure of the "finance charge" required notices. The notices themselves were but calls for a calculation that yields a different determined not to be preempted, however, bedollar cost for a like transaction, it is preempted. cause they merely provided more information The second provision in Regulation Z classi- than that required under federal law. Creditors fies a state law as contradictory to the federal law thus remain free to give the notices, but must use if a creditor must use a term different from that the federally prescribed term "finance charge" the federal law requires to describe the same instead of the preempted terms. item. Thus a state law is preempted if it calls for use of the term "time charge" to describe an item that corresponds to the "finance charge" on Application of the "More Protective" Test the federal disclosures. The inconsistency standard set by the Congress is used alone to determine whether Truth in Application of the "Contradiction " Test Lending preempts state laws relating primarily to consumer credit disclosures. That standard is Having defined inconsistency for purposes of the modified by a "more protective" test in certain regulation, the Board was ready for the next areas of law that involve substantive consumer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal and State Laws on Consumer Financial Services: The Doctrine of Preemption 827 rights rather than simple disclosure of informa- ing liability between the consumer and the instition. The Board has applied this modified test tution holding the account. under the provisions of the Electronic Fund Transfer Act and the Board's Regulation E. Regulation E prescribes the rules for transfers IMPLICATIONS OF DUAL LEGISLATION to or from a consumer's asset account (such as a checking or savings account, or a money market Under the preemption standard now prescribed fund) that are made electronically instead of by by the Congress for the financial services area, paper check. In the case of a Michigan law on federal preemption applies so narrowly as to electronic transfers, the Board determined that leave almost all state laws in place. The exissome provisions were preempted because they tence of dual legislation has implications for were inconsistent, while others were saved by financial institutions, consumers, and the regulathe "more protective" test. Both state and feder- tory process itself. al laws permit the unsolicited issuance of an access device—such as an automated teller machine (ATM) card—provided certain rules are Impact on Financial Institutions followed. But the Michigan law limited issuance to the issuer's current customers and required For the industry, the burdens of compliance with written acceptance of the unsolicited card by the two separate levels of legislation are substantial; customer. The Michigan requirements were some of these are summarized below. plainly inconsistent with the federal ones. But the Board ruled that the state's additional re- Discerning the Law. Institutions that offer quirements were more protective and thus financial services must consult both state and should stand. federal law (including administrative or judicial Another provision of Michigan law was pre- interpretations) to know whether those laws apempted because it was inconsistent with federal ply and what they require. If both federal and law and it did not provide greater protection to state laws are applicable, financial institutions consumers. It involved a consumer's liability for must monitor legislative, regulatory, and judicial unauthorized use of an ATM card or other access decisions at both levels to learn of any changes. device. The federal law prescribes a standard of Even when the state and federal laws are identiprompt notification for determining a consumer's cal, compliance with one may not ensure compliliability for unauthorized withdrawals: If the ance with the other if state administrative rulings consumer reports the loss or theft of an access of the law differ from federal interpretations. device within two business days of learning of Creditors that operate in many states confront the loss or theft, the consumer's liability is the problem of learning the requirements of limited to $50; the financial institution bears the federal law and the law of every one of those remaining loss. (Other dollar limits are applicable states. Failure to comply may expose the instituif the consumer delays beyond two business tion to enforcement actions by administrative days.) agencies at both the federal and the state levels— The Michigan standard, which was related to in addition to the risk of civil damages that negligence, appeared to impose liability greater consumers may be entitled to seek under both than $50 on a consumer who handled the card the federal and the state laws. negligently—by writing the personal identification number on the card, for example—even if Compliance Procedures. When state law varthe consumer reported the loss promptly. The ies substantially from federal law by imposing Board determined that this negligence standard additional or different requirements that are not was preempted because it increased the consum- preempted, the financial institution must estaber's exposure to liability. In reaching this result, lish procedures to ensure that the state requirethe Board also relied on the rejection by the ments are also met. State disclosure laws may Congress of a negligence standard in apportion- require, for example, either more credit disclo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Federal Reserve Bulletin • November 1983 sures or more detailed information than does the load." In fact, the Congress based its simplificafederal Truth in Lending Act. Because creditors tion of Truth in Lending in 1980 on the idea that must comply with the federal law and any addi- overdisclosure reduces the effectiveness of credtional demands of the corresponding state law, it information as a credit shopping tool. they must establish procedures to satisfy both. Differences between state and federal law also may complicate the development of the standard Impact on Federal Regulation forms that are widely used to comply with most laws on financial services or may require the use Concurrent state regulation also has implications of separate forms. for the federal regulatory process. It may impede deregulation on the federal level, as in the case of Preemption Determinations. A Board determi- the Truth in Lending Simplification and Reform nation that certain provisions in a state's law are Act of 1980. That act represented a major conpreempted may impose on all covered institu- gressional effort toward deregulation. Its goals tions in that state the expense of revising forms were to reduce the burden of compliance on and retraining personnel to accommodate changes creditors and to simplify disclosures so that mandated by that preemption. This result is most consumers could more easily understand and likely to occur in the case of determinations compare the terms of credit from various made under the Truth in Lending Act because sources. The act reduced the number of federal that act prohibits creditors from giving disclo- disclosures and provided that they should be sures required by a state law that has been segregated from state-required information. The preempted. Congress aimed for a simple, concise disclosure document that would communicate effectively to consumers the cost of credit. Impact on Consumers In many cases, disclosure forms became longer after the federal reforms went into effect. State Dual legislation has both positive and negative laws still on the books had been modeled on the implications for consumers. Federal laws gov- original, longer federal disclosures. Before 1980, erning consumer financial services are generally these state disclosures could be intermingled designed to establish minimum or uniform rights, with the federal disclosures, which often could to ensure that consumers across the nation re- be substituted for the state requirements. Now, ceive basic information and protections relating state disclosures must be appended to the segreto their financial transactions. State legislation in gated federal disclosures, so that the document the area may be more responsive to local issues, has actually become longer. however, and set standards above the national minimum. State laws that parallel the federal statutes often contain provisions that establish EXPLORING OTHER APPROACHES substantive rights and obligations of consumers and financial institutions. In the laws of some Dual legislation is costly to the industry and to states, the provisions on credit disclosure are but consumers, who ultimately bear that cost. It is a small part of a larger regulatory scheme gov- appropriate, therefore, to look for better ways to erning the content, validity, and enforceability of balance the competing concerns: the states' incredit contracts. This broader scheme expresses terest in regulating business within their borders the states' interest in policing certain conduct and the federal government's desire to legislate and protecting consumers. comprehensively in the financial services area. At the same time, the existence of overlapping Some critics of the present preemption stanlegislation can confuse consumers. Duplicative, dard believe state involvement is unnecessary additional, and more detailed disclosures re- and favor total preemption of state law. In the quired by states may compete for the consumer's Truth in Lending area, for instance, many segattention with the basic disclosures required by ments of the industry suggest that federal law federal law and may cause "information over- should preempt all state disclosure laws that call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal and State Laws on Consumer Financial Services: The Doctrine of Preemption 829 for additional, parallel, or more detailed informa- closure and other consumer matters, recognizing tion. that such laws frequently represent a careful Other approaches call for some deference to balancing of various state interests. To preempt the states' interest in regulating. One suggestion totally one segment of the states' laws could is to permit states to enact additional protec- affect that balance. The industry concern about tions, but to require that such protections be developing an approach different from the presignificantly greater than those provided by fed- sent narrow standard is legitimate, however, and eral law—and that they not place undue burdens it is appropriate to continue to explore alternaof compliance on the industry. Proponents of this tives that might reduce the burden of dual legislaapproach argue that states should not enact tion on the industry without diminishing consumtechnical variations that add to cost without er protections. expanding consumer benefits. Another approach, one that the Congress has use.d recently in other areas, calls for total preemption of state laws but allows an override of CONCLUSION that preemption. The Depository Institutions Deregulation and Monetary Control Act of 1980 Experience with overlapping state and federal preempted all state limitations on rates and involvement in the regulation of consumer financharges related to most first mortgages on resi- cial services raises a question about whether dential property. Nonetheless, that legislation benefits to consumers under the narrow preempreflected the congressional concern for states' tion standard, and the deference this scheme rights by allowing any state to override the pays to states' rights, are outweighed by the preemption within three years of the passage of complications associated with the coexistence of the act. The Congress also explicitly permitted state and federal laws. Although the Federal states to enact new limitations on certain charges Reserve Board has been reluctant to support at any time. An analogous approach in the finan- preemption of state law, it nevertheless has cial services area might be to preempt state laws, suggested that, given the extent of federal inbut to allow states to assess the need for their volvement in this area, it may now be time for own law and to re-enact one. the Congress to examine the possibility of more In 1981, a bill supported by many in the sweeping federal preemption. consumer financial services industry was intro- The problem has no easy solutions. Although duced in the Senate. That bill, which was not some of the overlapping state provisions appear enacted, would have substituted for the inconsis- in statutes that closely parallel the federal laws, tency standard a far more sweeping preemption numerous others are scattered throughout a wide of all state laws on credit disclosure that were in assortment of state laws that only tangentially any way similar to the federal Truth in Lending duplicate the federal rules. Analyzing and pre- Act. empting these isolated provisions would be both A more recent industry proposal, which administratively complicated and potentially disemerged in connection with a bill to simplify the ruptive to a broad array of state laws. Moreover, Consumer Leasing Act, would substantially the more sweeping preemption proposals that broaden the preemptive effect of that act. Les- have been presented to the Congress do not sors would have no liability for failing to give provide clear guidance for identifying the state state disclosures, except those related to sub- provisions that would be displaced. All of these stantive rights created by state law. For exam- proposals leave the task of interpretation to the ple, if state law created substantive rights—such Federal Reserve Board, thus placing the Board as requiring a lessor to provide a two-year war- in the uncomfortable position of serving as the ranty on leased merchandise—the state-required primary instrument for nullifying state law. disclosure of that right would not be preempted. Should the Congress provide for broader pre- The Board traditionally has been reluctant to emption, the Board would need considerable endorse broad preemption of state laws on dis- guidance in carrying out this responsibility. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Intervention in Foreign Exchange Markets A Summary of Ten Staff Studies The staffs of the Federal Reserve System and the has a much smaller impact on exchange rates U.S. Department of the Treasury have recently than does unsterilized intervention; (2) sterilized completed a set of ten studies on intervention in intervention can have some short-run impact on foreign exchange markets that the Federal Re- exchange rates and may therefore be effective in serve has released as Staff Studies 126-35. The achieving some short-run exchange market obfollowing article summarizes the results of these jectives; (3) sterilized intervention does not apstudies. It was prepared by Dale Henderson and pear to have much long-run impact, and its Stephanie Sampson, with the assistance of the effects are often swamped by those of other authors of the studies. macroeconomic policies; and (4) coordinated in- The analyses and conclusions set forth in the tervention is more effective than intervention by staff studies and in this summary article are a single country, although the conditions for those of the authors and do not necessarily successful coordination are exacting. reflect the views of the Working Group on Ex- The Working Group based its report on three change Market Intervention, the Board of Gov- types of background papers: case studies examernors of the Federal Reserve System, the Feder- ining episodes of intervention of special interest; al Reserve Banks, the U.S. Department of the surveys of the literature on intervention; and Treasury, or other members of their staffs. more formal econometric analyses. The staffs of the Federal Reserve System and the U.S. Department of the Treasury produced ten of these Fluctuations in exchange rates have concerned papers, and the Federal Reserve has released economic policymakers since the transition to these as a series of Staff Studies. This article widespread floating in 1973. There has been summarizes the objectives, methodologies, and much debate about the feasibility and desirability conclusions of each of these Staff Studies. of using intervention in foreign exchange markets to limit movements in exchange rates. Participants at the Versailles summit in June 1982 accepted a U.S. proposal to study their DEFINING INTERVENTION experience with intervention. A special Working Group on Exchange Market Intervention (the In their study, Donald Adams and Dale Hender- Working Group) was commissioned to carry out son argue that, in attempting to isolate the effects the study. Entirely retrospective, the study ex- of intervention as an independent policy tool, the amined the motives, methods, and effects of analyst will find it is useful to view intervention intervention operations by the various countries. as sterilized intervention—operations in the ex- The Working Group devoted much of its effort to change market that leave unchanged the moneanalyzing the effects of intervention. It ad- tary liabilities of both the home and foreign dressed the important question of whether steril- authorities. From this perspective, an intervenized intervention (which does not affect any tion operation is the analytical equivalent of a monetary base) can have significant effects on trade between the authorities and the public of exchange rates. securities denominated in one currency for those The April 1983 Report of the Working Group denominated in another. on Exchange Market Intervention draws no ex- The authors list a wide range of actions that plicit conclusions. The analysis in the report alter the relative supplies of securities denomiseems to suggest that (1) sterilized intervention nated in different currencies that are available to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Intervention in Foreign Exchange Markets 831 the public. One such action is the purchase or of the dollar, however; after a brief rise, dollar sale by central banks of foreign exchange for rates fell back during most of the rest of Februdomestic currency in the interbank market; this ary. The trend of dollar movements appears not is the only type of transaction included in the to have been reversed until the market became narrow, traditional definition of intervention. A convinced that U.S. economic performance was somewhat broader definition might include trans- improving relative to performance in other counactions in foreign currency directly with entities tries. that otherwise would have dealt with market In her second case history, Greene studies a agents. These so-called customer transactions much longer period of sustained pressure on the can be dealings with nonbank entities, central dollar, the two years between September 1977 banks in other countries, or the central bank's and October 1979. The United States moved own government (supplying the foreign exchange throughout this period to halt declines in the needed by the government to make interest pay- dollar, but when the U.S. authorities did not ments on foreign debt, for example). An even soon follow up their intervention operations with broader definition might include borrowings of consistent and effective measures to deal with foreign currency by public sector enterprises the underlying causes of the dollar's weakness, or by commercial banks when those borrowings any positive short-run impact of the intervention are induced or directed by the monetary au- faded. thority. Complicating U.S. intervention operations at the beginning of the period was the market's impression that the United States welcomed a U.S. EXPERIENCE WITH INTERVENTION depreciation of the dollar. In addition, the divergence between the domestic economic paths The series includes three in-depth case studies followed by the United States and its trading analyzing the experience of the United States partners had a significant impact on exchange with its intervention operations. In particular, rates. The United States tried to induce other these studies discuss the objectives and effects of countries with strong external positions to join it U.S. intervention operations for several impor- in a coordinated expansion, but in general the tant episodes during the period of floating dollar policies of those countries were less expansionrates in terms of the perceptions and motivations ary and less inflationary. A relatively slow adof U.S. monetary authorities at the time. These justment by the United States to higher oil prices operations are then evaluated from the present also contributed to a decline in the dollar. perspective of the U.S. authorities. The domestic policy changes in the United In the first study, which covers January States and Japan in late 1978, which were accomthrough March 1975, Margaret Greene describes panied by joint intervention operations, proved U.S. efforts to check the sharp day-to-day de- sufficient to strengthen the dollar substantially clines in the dollar rate against the deutsche mark against the yen. Against the major European and the Swiss franc. Concerned that these de- currencies, in which intervention operations clines would cumulate, U.S. authorities changed were larger, the dollar's decline came to a halt their intervention strategy, deciding to be pre- and the dollar stayed above its lows of the fall of pared to commit larger amounts of funds and to 1978. But new concerns about the U.S. economy enter the market earlier than they had on previ- developed during the summer of 1979, and large ous occasions during the floating rate period. joint intervention operations did not prevent a U.S. authorities also sought closer cooperation renewed decline in the dollar. Near the end of the from major central banks abroad. In February period, convergence of economic fundamentals, 1975, the first large-scale concerted intervention including economic policies, helped to reverse began. These operations appear to have met the the decline in the dollar. The change in Federal objectives of the U.S. authorities because the Reserve operating procedures in October 1979 pattern of virtually continuous daily declines and the subsequent tightening of money market ended, and intra-day variability declined some- conditions pushed the yen down vis-a-vis the what. They did not reverse the trend in the value dollar and helped turn around the dollar- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • November 1983 deutsche mark rate, although the dollar did not McCown—review the theoretical and empirical appreciate significantly until early 1980. literature on the effects of exchange rate variabil- The third study covers the period from Octo- ity on international trade and other economic ber 1980 to October 1981, in roughly the middle variables. The empirical tests they review use of which came the announcement of a change in data from the floating-rate period through 1977. the implementation of U.S. intervention policy. Although the results of these tests do not support Greene divides this period into two subperiods, a clear-cut conclusion about the effects of ex- October 1980 to February 1981 and February to change rate variability on the volume of trade, October 1981. they indicate that such variability has had no In each subperiod examined by Greene, the generalized effect on inflation. The authors condollar appreciated 23 percent against the clude that instability in national economies deutsche mark. U.S. authorities intervened dur- causes variability in exchange rates, and not the ing the earlier rise in the dollar to counter disor- other way around. derly market conditions by limiting fluctuations The authors highlight the problems in trying to in the dollar-deutsche mark rate and to rebuild model precisely how exchange rate variability its foreign-currency reserves. Data compiled by affects the behavior of firms and therefore how it the U.S. authorities during the period distinguish influences the demand for and supply of internabetween these two types of operations, and this tionally traded goods. For example, one should distinction frequently held in practice. However, account for the ability of firms to hold assets and it would be a mistake to infer that the distinction liabilities denominated in various currencies, was clear-cut. At the margin, the willingness of thereby reducing their exposure to exchange rate the U.S. authorities to operate on the scale they risk, and for the way movements in the exchange did in countering disorderly market conditions rate are related to those in other economic variawas influenced by their desire to accumulate net bles. foreign-currency balances. The U.S. and the Empirical evidence on the relationship be- German authorities intervened heavily between tween the volume of trade and exchange rate October 1980 and February 1981, but the objec- variability is mixed. Most analyses of data from tives of the two countries were not always the cross-sections made up of a number of countries same. Thus, although regular and close commu- conclude that the volume of a country's trade is nication was maintained, it would not be entirely not affected by the variability of short-term accurate to characterize these operations as co- changes in nominal and real exchange rates. ordinated intervention. However, analyses of time-series data on trade After February 1981, U.S. intervention of individual countries, bilateral trade flows, and ceased, and the Bundesbank increased its own trade of several Brazilian industries present a intervention activity for a time. It is not evident somewhat different picture; four of six of these that the two decisions were related, or that these analyses find that variability in nominal or real changes had a demonstrable impact on the extent exchange rates has had a significant, on average of appreciation of the dollar. Variability in all negative, effect on some trade flows. The Treamajor bilateral dollar exchange rates increased sury economists suggest that future work examslightly after February, especially after mid-Au- ine measures of real risk relevant for highly gust when the dollar was depreciating and inter- diversified firms and the effects of variability of vention by both the German and U.S. authorities longer-term changes in exchange rates. was negligible. Some evidence across countries shows a negative relationship between growth rates in real gross fixed-capital formation between 1973 and EXAMINING THE EFFECTS 1976 and measures of variability in nominal ex- OF EXCHANGE RATE VARIABILITY change rates. The authors suggest that increased uncertainty about future rates of inflation may Three economists from the U.S. Treasury— cause both exchange rate volatility and cutbacks Victoria Farrell with Dean DeRosa and T. Ashby in investment plans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Intervention in Foreign Exchange Markets 833 CALCULATING THE PROFITABILITY for all subperiods when the forward discount is OF INTERVENTION used. Including net interest earnings increases mea- Laurence Jacobson begins his study by review- sured profits significantly. Almost 90 percent of ing the literature that analyzes profitability as a gross daily intervention occurred during one criterion of the effectiveness of intervention in subperiod, October 1977 to January 1981. Profits stabilizing exchange rates. According to this calculated for this episode are close to the total criterion, intervention stabilizes exchange rates calculated for the entire period. Moreover, net if and only if the intervention is profitable. Ap- interest earnings in this subperiod constitute parently, if the monetary authorities bought low more than half the total profit figure: the United and sold high, they would reduce variability in States gained by issuing its mark debt at interest exchange rates as well as earn a profit. However, rates substantially lower than dollar interest Jacobson cites papers that call into question this rates. proposition; profits can be associated with increased variability and losses with reduced vari- ISOLATING THE EFFECTS ability. Significantly, if the monetary authorities OF STERILIZED INTERVENTION prevent any fluctuation in the exchange rate, they earn zero profits. The last four studies—two literature surveys and After summarizing the theoretical issues, two econometric analyses—focus on the impor- Jacobson points out the substantial practical tant question of whether sterilized intervention is problems that beset attempts to calculate profits an independent policy instrument. A sterilized made from intervening in exchange markets. One purchase of deutsche marks against dollars, for must choose the sample period and decide how example, results in a larger supply of dollarto value initial and ending stocks of reserve denominated government debt and a smaller assets. Also, profits should include a measure of supply of mark-denominated government debt net interest earnings on foreign-currency re- available to the public. If investors require an serves derived from a relevant interest rate dif- inducement to switch their mark assets for dollar ferential or the forward discount. assets—that is, if dollar debt and mark debt are The author first calculates the profits on U.S. imperfect substitutes in the portfolios of private dollar-deutsche mark intervention, varying the agents—then the expected return on mark secubeginning and ending point of the sample period. rities falls relative to that on dollar securities, His measure of profits includes an inventory and the mark appreciates against the dollar. adjustment for accumulated stocks of foreign However, if securities denominated in different currency. Evaluation of the profitability of cu- securities are perfect substitutes, then sterilized mulated intervention from 1973 to 1979 shows a intervention has no direct effect on the exchange loss of $500 million, a consequence of revaluing rate. Sterilized intervention is an independent large net dollar purchases at the dollar's historic policy instrument if securities denominated in low. However, the appreciation of the dollar and different currencies are not perfect substitutes. substantial dollar sales over the next two years Even if sterilized intervention is not an indemade cumulated intervention activity from 1973 pendent policy instrument, it may be a signaling to 1981 moderately profitable. device. For example, by conveying otherwise Jacobson then calculates profits for eight sub- unavailable information about the future course periods (one of which is the entire period) in of monetary policy, sterilized intervention may which net intervention was near zero. This exer- have an indirect effect on the exchange rate. cise is interesting because inventory valuation problems are virtually eliminated. Profits are positive for all but one subperiod when the Analysis of Daily Data differential between the U.S. Treasury bill rate and the German interbank rate is used to calcu- Because the effect of sterilized intervention may late net interest earnings; and they are positive be relatively short-lived, the Working Group on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • November 1983 Exchange Market Intervention decided it was change rates and intervention while holding the important to analyze daily data. Unfortunately, current and expected future path of the money formidable difficulties hamper attempts to draw supply constant. conclusions from these data. To extract as much information as possible Kenneth Rogoff explores whether nonstructur- from daily intervention data, Bonnie Loopesko al time-series techniques, especially vector au- adopts a widely used empirical approach that has toregressions, can be used to examine the impact minimal data requirements. She tests a joint of intervention in the short run. A vector auto- hypothesis composed of two underlying hypothregression system seems to have an advantage eses: (1) securities denominated in different curfor analyzing the relationship among economic rencies are perfect substitutes, and (2) exchange variables using limited daily data: no structural markets are "efficient" in the sense that market model needs to be imposed to estimate the participants use all relevant information in forecoefficients of the system. However, that advan- casting spot exchange rates. Realized profits tage is more apparent than real. The researcher from speculating in the foreign exchange market must impose such a structural model to interpret will reflect any expected risk premium and any the coefficients of a vector autoregression. Thus error in forecasting the spot rate. If perfect asset the vector autoregression technique is not a way substitutability holds, then the expected risk of escaping the severe problem of omitted varia- premium should always be zero. Realized profits bles presented by daily data. The money supply therefore result only from forecasting errors. is not available daily, and one can reasonably And, if markets are efficient, the public makes no assume that changes in the money supply are systematic forecasting errors; thus realized profcorrelated with sterilized intervention and its (measured as the interest differential in favor changes in the exchange rate. This correlation of a currency minus its actual rate of depreciaclouds the interpretation of the vector autore- tion) should be random. gression. Even if daily data on the money supply If the joint hypothesis does not hold, then were available, the presence of contemporanesystematic realized profits may be attributable ous correlation between intervention and moveeither to a risk premium, or to a systematic error ments in exchange rates would continue to conin forecasting the spot rate, or to both. The first found interpretation of the autoregression would imply that assets denominated in different coefficients. Also, the number of variables incurrencies were not perfect substitutes, while the cluded in a vector autoregression system has to second would indicate that speculators consisbe limited to attain computational tractability. tently ignored some relevant information in mak- Turning to a review of current literature, Ro- ing their forecasts. goff reports on two time-series investigations of Loopesko tests to see whether realized profits the effectiveness of exchange market interven- are indeed random, using exchange rates for six tion. One uses daily data on exchange rates and currencies (the Canadian dollar, the French intervention to analyze the Canadian experience franc, the deutsche mark, the yen, the lira, and with floating exchange rates. It concludes that the pound sterling) against the U.S. dollar. The official intervention did play an important role in joint hypothesis is soundly rejected, but this stabilizing the Canadian dollar from 1952 to 1960. conclusion leaves open the question of which of However, as Rogoff points out, this investigation the underlying hypotheses is false. To address was not concerned with the distinction between this question, the author considers whether presterilized and nonsterilized intervention. The dictions of realized profits are improved by the other investigation does make this important use of data on cumulated intervention. For aldistinction. It contains estimates of separate six- most half the subsamples examined, cumulated variable vector autoregressions for the United intervention does help predict realized profits. States, the United Kingdom, Germany, and Ja- These findings provide limited support for the pan using quarterly data. Unfortunately, the view that securities denominated in different presence of contemporaneous correlation makes currencies are not perfect substitutes and thus it very difficult to use these vector autoregres- sterilized intervention can have at least a shortsions to analyze the relationship between ex- run effect on exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Intervention in Foreign Exchange Markets 835 This study also includes tests for whether because the expected future exchange rate is coordinated intervention has a different effect unobservable, one must make an assumption (but not necessarily a stronger one) on exchange about how expectations are formed. In early rates than does noncoordinated intervention. empirical work, investigators imposed static ex- Only in the case of dollar-deutsche mark inter- pectations—that is, the expected future exvention are there clearly enough instances of change rate was assumed to be equal to the coordinated intervention in the sample period current rate. In more recent research, analysts from which to obtain statistically significant re- have postulated rational expectations—that is, sults. In one set of tests, coordinated interven- market participants were assumed to make no tion has a different effect, but in another it does systematic errors in forecasting the exchange not. rate. Tryon concludes that the empirical analyses he reviews do not resolve the question of whether Analysis of Monthly and Quarterly Data securities denominated in different currencies are imperfect substitutes and thus sterilized in- Economists have more hope of isolating the tervention can have significant effects on exeffects of sterilized intervention in empirical change rates. Earlier analyses, most of which are analyses of monthly and quarterly data because based on capital flow equations, provide some data on more variables are available at these support for the view that securities are imperfect intervals than at daily ones. Ralph Tryon de- substitutes. More recent analyses, most of which scribes the theoretical underpinnings of existing are based on bond demand equations and the empirical analyses of this type and summarizes hypothesis of rational expectations, provide altheir findings. most no support for this view. Instead, they Tests for the imperfect substitutability of se- suggest that securities are such close substitutes curities denominated in different currencies are that sterilized intervention is unlikely to have based on the portfolio-balance model of interna- significant effects on exchange rates. tional financial markets. In this model, market Deborah Danker, Richard Haas, Dale Henderparticipants in each country allocate their wealth son, Steven Symansky, and Ralph Tryon provide among domestic money and securities denomi- new empirical evidence from monthly and quarnated in both the home and foreign currencies. terly data on the degree of asset substitutability. The return on foreign-currency securities is risky Their version of the theoretical portfolio-balance because the future exchange rate is uncertain. model is conventional, except that it includes a Because they are averse to risk, investors diver- more complete specification of commercial bank sify their holdings of securities instead of holding behavior. Exchange rate expectations play an the single security with the highest expected rate important role in the model; both static and of return; the share allocated to each security is rational expectations are included in the empirian increasing function of the expected return on cal analysis. that security. If securities are imperfect substi- To test for imperfect substitutability, the aututes, one expects to find a statistically signifi- thors investigate the relationship between realcant relationship between the holdings of securi- ized profits from speculation (or the ex post risk ties and rates of return. premium) and other variables, including a stock Two important problems are encountered in of securities, obtained by rearranging the securiempirical estimation of the portfolio-balance ty demand function. Direct estimates of security model. First, data on the bond holdings of resi- demand functions are presented for completedents of each country are not generally available ness but are not emphasized because such estiby currency. To get around this problem, investi- mates are probably unreliable when the degree of gators have estimated either a capital flow equa- substitutability is high. tion using data from the balance of payments Tests are performed for Germany and Japan accounts, or an equation representing the aggre- using monthly data and for Canada using quartergate demand by residents of all countries for ly data. For Germany and Japan, it was possible bonds denominated in a given currency. Second, to obtain data on holdings of securities in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 Federal Reserve Bulletin • November 1983 domestic currency by both domestic and foreign Correlation among explanatory variables may residents. A recently developed technique is make it difficult to determine whether the data used to correct for a moving-average error prob- are consistent with a particular theoretical relalem that may arise in estimating rational expecta- tionship. A simple procedure for overcoming this tions models. problem is to exclude some explanatory varia- To compare their results with those of other bles. The authors report that they can obtain researchers, the authors test the joint hypothesis more estimated coefficients that have signs conof perfect substitutability and market efficiency. sistent with the portfolio-balance model when As in some previous tests, the joint hypothesis is they follow this procedure than when they inrejected for Canada and Germany but not for clude all explanatory variables. These modified Japan. For Canada and Germany, realized prof- relationships are useful if one is confident that its from speculation are correlated with both securities are imperfect substitutes and wants to lagged realized profits and the explanatory varia- obtain some estimate of the size of the effect of bles suggested by the portfolio-balahce model. sterilized intervention. However, they are sus- However, the results provide only limited sup- pect because the explanatory variables are not port for imperfect substitutability. The estimated precisely those implied by the portfolio-balance parameters of the portfolio-balance model are theory and because several alternatives were either insignificant, of the wrong sign, or both, in tried before one was selected. • almost all cases. Listed below are the titles of the Staff Studies 130. Effects of Exchange Rate Variability on summarized in this article. Single copies of these International Trade: A Review of the Literature, studies as well as of the Report of the Working Victoria S. Farrell with Dean A. DeRosa and Group on Exchange Market Intervention are T. Ashby McCown. available free of charge from Publications Ser- 131. Calculations of Profitability for U.S. vices, Board of Governors of the Federal Re- Dollar-Deutsche Mark Intervention, Laurence serve System, Washington, D.C. 20551.1 R. Jacobson. 132. Time-Series Studies of the Relationship 126. Definition and Measurement of Exchange between Exchange Rates and Intervention: A Market Intervention, Donald B. Adams and Dale Review of the Techniques and Literature, W. Henderson. Kenneth Rogoff. 127. U.S. Experience with Exchange Market 133. Relationships among Exchange Rates, Intervention: January-March 1975, Margaret L. Intervention, and Interest Rates: An Empirical Greene. Investigation, Bonnie E. Loopesko. 128. U.S. Experience with Exchange Market 134. Small Empirical Models of Exchange Intervention: September 1977-December 1979, Market Intervention: A Review of the Literature, Ralph W. Try on. Margaret L. Greene. 135. Small Empirical Models of Exchange 129. U.S. Experience with Exchange Market Market Intervention: Applications to Canada, Intervention: October 1980-0ctober 1981, Mar- Germany, and Japan, Deborah J. Danker, garet L. Greene. Richard A. Haas, Dale W. Henderson, Steven A. 1. Numbers 126, 131, 132, and 134 are currently available. Symansky, and Ralph W. Try on. The availability of the other studies will be announced in a forthcoming BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

837 Industrial Production Released for publication November 15 October surpassed the previous monthly highs reached in July 1981 (153.9) and March 1979 Industrial production increased an estimated 0.8 (153.5). The index has risen 14.8 percent since percent in October following revised gains of 1.3 the business cycle trough of November 1982. percent in both September and August. In Octo- In market groupings, output of durable conber, production of consumer goods and construc- sumer goods edged up only 0.1 percent in Octotion supplies increased only slightly, but the ber. The annual rate of auto assemblies declined output of equipment rose sharply. At 154.8 per- somewhat to 7.5 million units during October, cent of the 1967 average, industrial ouput in largely because of reported temporary shortages 1967 = 100 1967 = 100 TOTAL INDEX 170 Materials output 170 150 150 / V 130 Products output 130 FINAL PRODUCTS 190 ~ MATERIALS Nondurable - 190 / - 170 170 Business equipment \ ' / / 150 150 \ /Durable^ / - 130 J ^ / - 130 Energy U ~ 110 - — 110 90 1 1 1 1 1 1 90 190 190 CONSUMER GOODS INTERMEDIATE PRODUCTS 170 170 Nondurable Business supplies 150 \ / 150 V V~/ Durable \ v / ^ 130 Construction supplies 130 110 J I i 110 1969-70=100 Annual rate, millions of units 180 -AUTOS /- x ^ Stocks 18 190 140 14 170 100 r j f A - p v A ^ v - -/ 10 80 VSales ^ w V^ vy — 150 60 Domestic assemblies \ / \ 130 40 30 1 1 1 1 i 1 110 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: October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 Federal Reserve Bulletin • November 1983 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1983 1983 OOOcccttt... 111999888222 tttooo OOOcccttt... Sept. Oct. June July Aug. Sept. Oct. 111999888333 Major market groupings Total industrial production 153.6 154.8 1.4 2.3 1.3 1.3 .8 14.1 Products, total 154.7 155.9 1.3 1.9 1.4 1.1 .8 11.9 Final products 152.5 153.8 1.3 1.8 1.1 1.3 .9 10.9 Consumer goods 157.8 158.2 1.3 1.6 .8 1.1 .3 11.3 Durable 157.9 158.0 2.5 2.5 .7 2.5 .1 24.9 Nondurable 157.8 158.2 .9 1.3 .8 .6 .3 6.5 Business equipment 158.8 162.3 1.7 2.1 2.1 1.5 2.2 10.3 Defense and space 122.0 123.5 .3 2.0 .2 1.1 1.2 10.4 Intermediate products 163.2 163.9 1.5 2.3 2.3 .9 .4 15.7 Construction supplies 150.7 151.0 2.7 2.6 2.3 1.0 .2 23.3 Materials 151.7 153.0 1.4 2.9 1.2 1.4 .9 17.7 Major industry groupings Manufacturing 154.8 156.2 1.6 2.2 1.3 1.4 .9 15.7 Durable 141.6 143.5 1.7 2.7 1.4 2.1 1.3 19.3 Nondurable 173.9 174.6 1.5 1.7 1.1 .8 .4 11.8 Mining 117.4 118.5 -.2 2.1 1.1 .9 .9 2.2 Utilities 176.4 174.8 .1 3.7 2.0 -1.7 -.9 4.2 NOTE. Indexes are seasonally adjusted. of parts; output of trucks for consumer use, Output of materials increased 0.9 percent—a however, continued to increase. Production of somewhat slower pace than the average during home goods is estimated to have increased 0.9 the first nine months of 1983. Production of percent. Output of nondurable consumer goods durable materials advanced 1.4 percent, with showed moderate increases in most components large increases in metals and equipment parts; but a reduced rate of production of consumer output of nondurable materials gained 0.5 perfuel and electricity. Production of business cent. equipment rose 2.2 percent, with sizable in- In industry groupings, manufacturing produccreases in most major categories; production of tion increased 0.9 percent, with a gain of 1.3 defense and space equipment also increased percent in durables and 0.4 percent in nondurastrongly. Following eight months in which gains bles. Mining output was up 0.9 percent, but averaged more than 2.5 percent, the rise in output by utilities was reduced again. output of construction supplies in September was revised to 1.0 percent and is estimated to have changed little in October. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

839 Statements to Congress Statement by Paul A. Volcker, Chairman, Board head offices. Moreover, only institutions that are of Governors of the Federal Reserve System, eligible for FDIC (Federal Deposit Insurance before the Subcommittee on Domestic Monetary Corporation) insurance can be members; thus, Policy of the Committee on Banking, Finance under current law, savings and loans and credit and Urban Affairs, U.S. House of Representa- unions may not apply for membership. tives, October 18, 1983. Recognizing the need to broaden contacts between the Federal Reserve and the thrift industry I appreciate this opportunity to give the views of after passage of the Monetary Control Act, the the Federal Reserve Board on a number of bills Board established a Thrift Institutions Advisory of importance for the structure and functioning Council, with members from each of the types of of the Federal Reserve. Two bills, which I will be institutions mentioned in H.R. 3868—that is, discussing together, would add three directors savings and loan associations, savings banks, representing thrift institutions to the boards of and credit unions. This council meets with the directors of the Federal Reserve Banks and Board quarterly—as does the statutory Federal would provide for the retirement of Federal Advisory Council, whose members are commer- Reserve stock now held by the member banks. cial bankers—to discuss a variety of issues of The third bill, called "The Federal Reserve Mod- mutual concern. In addition, the Federal Reserve ernization Act," includes a provision for the Banks have also made an effort to enhance compilation and publication of detailed minutes interactions with thrift institutions. They have of Federal Open Market Committee meetings, appointed thrift industry participants to the addresses several issues regarding the office of boards of 11 of our 25 Reserve Bank branches. Chairman, and also covers some housekeeping They have also established mechanisms—such matters. as industry advisory committees—for more effective mutual communication with the thrift institutions in their Districts. THRIFT DIRECTORS AND FEDERAL RESERVE The Board shares the objective of adding to STOCK the head-office boards of the Federal Reserve Banks individuals with direct and current experi- Both H.R. 3868 and H.R. 3869 address some ence in the thrift industry. But we believe that issues that have been raised because the relation- objective should and can be accomplished withship of the Federal Reserve to depository institu- out establishing a new class of three directors tions has been changed as a result of the Mone- composed entirely of thrift institution representary Control Act of 1980. That act applied tatives. reserve requirements to all depository institu- Several considerations of the appropriate baltions over a certain size and made Federal Re- ance and size of Reserve Bank boards are releserve credit and services available to these insti- vant to that conclusion. H.R. 3868 would subtutions as well. However, certain distinctions stantially increase the size of the board of remain between member banks and other deposi- directors, but entirely through new thrift repretory institutions; only member banks are super- sentatives. This approach would not assist our vised by the Federal Reserve, own stock in the efforts to broaden the boards in other direc- Federal Reserve Banks, participate in the elec- tions—for example, by adding directors with tion of Reserve Bank directors, and are assured background in smaller businesses, consumer and of representation on the board of directors of the community affairs, and labor. There is also an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 Federal Reserve Bulletin • November 1983 apparent anomaly in the proposed legislation from political control, present stockholding arbecause it would not permit the Board of Gover- rangements help assure the independent role of nors to select directors from among the 8,000 the Federal Reserve within government. nonmember banks, even though these banks are We would be glad to review in greater depth subject to the same reserve requirements and the proper role of stock ownership in the struchave the same access to System services as the ture of the Federal Reserve System with the thrifts (and actually keep more reserves and use subcommittee. We believe it would be approprimore services). Moreover, those commercial ate to embark on changes in this area only after banks often have an additional relationship with considerable deliberation and careful study. the Federal Reserve through our regulation of Questions concerning Reserve Bank stock need their holding companies. not be raised by other steps that could and A more technical deficiency in the proposal is should be taken to achieve a broader composithat it requires a representative of a savings and tion of the boards of the regional Reserve Banks. loan, a savings bank, and a credit union on the Specifically, the Board recommends that you Board of every District Bank, with no attention provide for expansion of the present Class C to the differing importance of those institutions in directors from three to five and for the inclusion various regions of the country. I would also point of nonmember depository institutions specificalout that member banks, which are required to ly among the various groups that should be purchase Federal Reserve stock on which a considered in choosing such directors. Class C dividend of only 6 percent is paid and which are directors are appointed by the Board of Goverdirectly supervised by the Federal Reserve, elect nors, and such a provision would enable the three bankers, the same number as proposed for Board to broaden representation on the boards the thrifts. while keeping them to an effective, workable As the last point implies, a whole new class of size. We would undertake normally to provide directors, selected from among thrift institutions, that one Class C director at each Federal Rewould inevitably raise more general questions serve Bank be drawn from the thrift industry, about the organization of the Federal Reserve and that among the 12 Banks the directors would and the nature of voting rights of Reserve Bank include individuals with savings and loan, savstock. As you know, present arrangements for ings bank, and credit union backgrounds. We stock ownership in the Federal Reserve and for would also continue to encourage the service of selection of Federal Reserve Bank Directors do thrift industry participants on Branch boards. not confer control over policy to the stockhold- I believe this proposal would further assure ers or to the Bank Directors. Federal Reserve that the interests of thrift institutions would be policy is determined by public officials acting, fully taken into account in the deliberations of under the law, wholly in the public interest. But the Reserve Bank boards. At the same time, it stock ownership and local boards have implica- would also make possible choices from a greater tions for the entire regional and independent range of backgrounds in appointing Class C structure of the Federal Reserve System. From directors generally. We agree with numerous the standpoint of banks, the opportunity to join comments in both the House and Senate in the the Federal Reserve System allows a bank some past that directors should adequately reflect the latitude in its choice of a primary federal regula- diversity of the American economy and society, tor and provides an institutional basis for com- and a larger number of Class C directors would municating with the System. From the stand- help achieve that result. point of the organization of the System, local directors chosen locally help assure the stature and identity of regional Federal Reserve Bank FEDERAL RESERVE MODERNIZATION ACT officials in the decisionmaking process, while at the same time providing for active review and The Federal Reserve supports the passage of surveillance of regional operations. By providing H.R. 4009, the Federal Reserve Modernization for technical ownership of the System insulated Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 841 Detailed FOMC Minutes Occasionally there are particular sensitivities in the international financial area, in which pre- One section of that bill would require that de- mature release of information on ongoing negotitailed minutes be maintained for all meetings of ations and on the views and operations of foreign the Federal Open Market Committee (FOMC) governments could have an adverse impact on and that these minutes be made available to the the ability of the Federal Reserve to act in an public on a deferred basis. The Federal Reserve atmosphere of mutual confidentiality and trust already provides the public with a great deal of with foreign countries. The provisions of the bill information on FOMC policy decisions. The to deal with this contingency seem to us ade- Record of Policy Actions prepared for each quate and appropriate. meeting includes a summary of the views expressed by Committee members on economic developments and on monetary policy, including Proposals Regarding Appointment of the any divergent views, and records all the votes on Chairman monetary policy actions. Information on monetary policy is also provided to the Congress and The Board believes there is merit in providing for to the public through the Board's semiannual a consistent relationship between the term of the reports under the Humphrey-Hawkins Act and Chairman of the Federal Reserve with the term through frequent testimony before congressional of the President. At present, the beginning of a committees. Chairman's term is an accident of history—a H.R. 4009 would supplement the information product of the timing of previous appointments, now released primarily by requiring that the resignations, and expirations of the term of a decisions and debate be recorded in full, and that Chairman as a member of the Board of Goverthe views expressed by any member of the nors. The principal problem with the present FOMC be attributed to that member. In our arrangement is that a new four-year appointment judgment, the detailed minutes in question would might be required late in a presidential term or in not add substantively to the information now the midst of, or shortly after, a contentious being made available to the public about the political campaign, tending to bring the choice nature of our policy decisions, but the Board into the heat of the political contest. understands the desire to establish a more de- It is difficult to argue that there is a single tailed record that might be of future interest to optimal alignment of the two terms, but among historians, economists, and other close students the possibilities there is a sound basis for making of monetary policy. Accordingly, the Board has the four-year term of the Chairman begin on no objection to the preparation and eventual February 1 of the year after the President's term release of such minutes provided a suitable peri- of office commences, as proposed in H.R. 4009. od of time has elapsed. Such an alignment would permit a President to We believe such a time period is essential to nominate a Chairman relatively early in his term, preserve the confidentiality and spontaneity of but at a point in time somewhat removed from the deliberations. The provisions of H.R. 4009 the series of political appointments required at make clear that no portion of the minutes may the very start of a new administration. Continulegally be released before a specified minimum ity at the central bank in the midst of a transition period of approximately four years after the of administrations would be especially desirable. calendar year in which the meeting occurred and Moreover, the proposed date has a technical provide for the withholding of references to advantage in that the expiration of the Chairsensitive international financial developments man's term would coincide with the expiration of for additional periods. A minimum time period of the term of a member of the Board of Governors, that length is necessary to avoid inhibiting the so there would be no question of an opening on frank exchange of views during policy discus- the Board for a new appointment. sions and the risk of politicizing the decisionmak- To avoid the possibility of appointment for a ing process. short, unexpired portion of a term, a provision Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Federal Reserve Bulletin • November 1983 could be added to the proposed legislation that, provision for the former situation and contains in the event of an opening within the year after an ambiguity with regard to the latter by allowing the inauguration of a President, the term of the Board members to continue serving until their new Chairman would encompass both the re- successor is confirmed without specifying their maining months of the current term and the next continuation as Chairman or Vice Chairman regular four-year term. per se. Another provision of the proposed legislation would assure that a President would not be Federal Reserve Bank Branches constrained in his choice of Chairman by the geographic restriction applicable to other gover- Finally, the Board also supports the removal of nors. Specifically, the restriction that no two the limit on the cumulative dollar amount that members of the Board of Governors may be may be spent on the construction of Federal selected from the same Federal Reserve District Reserve branch buildings. The current limitawould be lifted in the case of the appointment of tion—last amended in 1974 to bring it to a a Chairman. The Board supports this "at large" cumulative total of $140 million—will be exappointment of the Chairman on the grounds that hausted by projects that are under way and the President should be permitted to select the currently in an advanced planning stage. We most qualified individual for the position. have established a process that requires Board The proposed legislation also (1) authorizes approval at each of several stages of every the Vice Chairman to act as Chairman in the building program of the Reserve Banks to assure event of the unavailability of the Chairman or, in that the space needs are projected appropriately, the event of a vacancy, pending the appointment that alternative approaches are evaluated thorand confirmation of a successor; and (2) clarifies oughly, and that construction costs are well that the Chairman or Vice Chairman shall contin- controlled. The lack of authorization for further ue to serve in that capacity after expiration of his funding introduces unnecessary difficulties to the or her term until a successor is confirmed. The construction and planning processes. In short, Board supports these amendments to the Federal retention of the current limitation could impede Reserve Act. The act currently makes no clear the efficiency of System operations. • Statement by Paul A. Volcker, Chairman, Board At that time, it was evident that the current of Governors of the Federal Reserve System, economic recovery had gained considerable mobefore the Joint Economic Committee, October mentum and was following in many respects a 20, 1983. typical cyclical pattern. Advances in residential construction had been large; consumer spending I am pleased to have the opportunity to meet had registered exceptional increases in the with this committee to discuss the current eco- spring; and business investment spending also nomic situation. As you know, the Federal Re- was beginning to strengthen. Employment gains serve's most recent official monetary policy re- were substantial through the first half, and the port was submitted to the Congress in mid-July.1 unemployment rate—though still high—had Because that report treated the economic situa- moved steadily lower. By midyear, only the tion in considerable detail, my remarks on the export sector remained a major depressant on current economic and financial situation will be the growth of real gross national product, reflectlimited mainly to an updating. More importantly, ing the further widening of this country's foreign I also would like to reemphasize a number of trade deficit. concerns that I expressed at the time that the By and large, the economic trends evident at midyear report was submitted to the Congress. midyear have continued through the third quarter. Industrial production has continued rising at 1. "Monetary Policy Report to the Congress," FEDERAL a rapid pace through September. Payroll employ- RESERVE BULLETIN, vol. 69 (August 1983), pp. 579-90. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 843 ment increased nearly two-thirds of a million could be said that recent events do not differ during the three months ending in September, dramatically from the early phases of some earliand the unemployment rate fell three-fourths of a er business cycles that also began with strong percentage point over that same period. Prelimi- growth and improved price performance—but nary indications suggest that growth in real GNP later deteriorated into accelerating inflation and remained fairly close to the exceptionally high stagnating real activity. That past record should rate of the second quarter. On the whole, I be warning enough to resist any temptation to sit believe that the data indicate that the economy back and let events take their course, hoping that remains firmly on the path of expansion. the momentum of expansion and the progress Moreover, the recent price information contin- already made against inflation will be sustained ues to underscore the gains made against infla- pretty much on their own. tion over the past two or three years. During the Moreover, there are obvious potential obstafirst eight months of 1983, the consumer price cles in the path to sustained progress. Most index rose at about a V/i percent annual rate, importantly, the current prospect that federal somewhat less than the rate achieved in 1982, budget deficits will remain exceptionally large and the producer price index, on balance, has into the indefinite future is a major factor propshowed virtually no change over that same peri- ping up interest rates and continues to pose a od. This price information is better than we have serious risk to the stability of financial markets in experienced in a decade or more, in sharp con- the future, threatening the balance and ultimate trast to the racheting upward of prices in the sustainability of the recovery itself. The econom- 1970s. ic and financial problems of many developing Because labor inputs account for about two- countries—aggravated by the high level of dollar thirds of total GNP, an easing in growth of labor interest rates—remain a dark cloud over the costs is crucial if our gains against inflation are to international financial system, and unless conprove sustainable. On this score, we have made tained, could jeopardize our own economy. And, further progress so far this year. The rate of despite our substantial progress against inflation, increase in nominal wage gains has trended doubts about the sustainability of that process, downward; the hourly earnings index, the most and temptations to revert to attitudes and behavcurrent wage measure, has risen at a rate of less ior characteristic of the 1970s, could undermine than 4 percent this year. The easing of cost prospects for continuing economic expansion. In pressures has been reinforced by rapid produc- these respects, we are in a period of testing. tivity gains that appear to reflect not only the It is well within our capacity to pass these cyclical gains normally associated with the early tests. But it will take a positive approach, not a stages of expansion, but also some apparent wait-and-see attitude. Data for the past fiscal improvement in the trend rate of productivity year provide some sense of the budgetary probgrowth. It is this kind of pattern, if sustained, lem; in fiscal 1983 the federal budget deficit, not that can keep the underlying inflation rate mov- counting Treasury financing of off-budget proing lower—and real wages rising. grams, apparently reached almost $200 billion, Overall, these recent indicators of economic nearly twice the previous year's deficit, which activity, inflation, and productivity provide a itself had been of record proportions. The 1983 strong start toward a much more satisfactory federal deficit amounted to about 6V2 percent of economic performance than we have seen for nominal GNP: before 1983, there had been only many years. At the same time, as I have said one year in the past three decades in which many times before, what counts is not the rate of federal deficits were as much as 4 percent of economic growth over a short time span of a few GNP. months, or even a few quarters, but rather the Obviously, the magnitude of the federal deficit performance of the economy over time. The in future years will depend on both the actions of current expansion, though more robust than gen- the Congress and on the strength of the economic erally expected at the beginning of the year, still recovery. A large portion of the 1983 deficit— is less than a year old. And, on the surface, it perhaps half—reflected the influence of the busi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 Federal Reserve Bulletin • November 1983 ness cycle on federal receipts and expenditures. turning to foreign investors to help finance its As the economy improves, this "cyclical" ele- government deficits, while, by the same process, ment in the deficit will become smaller. draining vitality from the firms and industries But given current legislation, the noncyclical, that in the past have been important exporters. or "structural" part of the deficit is all too likely As I noted earlier, exports have been a weak to rise further. Indeed, under even the most element in the business picture, and our trade optimistic economic assumptions now being and current account deficits are growing toward made, the federal deficit appears likely to remain levels that would be unsustainably large. The at levels, relative to the size of the economy, that longer that process lasts, the greater the potential are without historical precedent during periods instability for the U.S. and for the world of economic expansion. economy. A year ago there appeared to be a growing The persistence of large federal deficits and commitment in the Congress to address the prob- high interest rates also complicates the efforts to lems associated with federal deficits. Today, I deal with the international debt situation. The fear the sense of urgency has dissipated. Instead, developing countries—excluding those that are with the economy growing again, there may be a members of the Organization of Petroleum Extemptation to try to live with historically unprec- porting Countries—have a total indebtedness of edented peacetime deficits. about $575 billion. Of that total, about $285 That course implies great hazards. Even in the billion is owed to banks around the world, with period just completed—during which private more than $100 billion owed to U.S. banks. The credit growth was reduced substantially by the level of indebtedness is high relative to the recession—the influence of heavy federal bor- current income-generating potential of those rowing contributed to the persistence of high economies, and the great bulk of the debt is in interest rates. Maintaining large deficits in com- dollars, paying dollar interest rates. As you ing years makes it far more likely that interest know, difficulties in servicing these debts have rates will remain historically high well into the been widespread. recovery, posing a risk to the sustainability of the Thus far, problems have been contained expansion. through an extraordinary degree of cooperation The progress we have made against inflation— among borrowers, private creditors, national auif sustained—is one fundamental force that thorities, and international organizations. The should tend to make interest rates lower over borrowing nations themselves have undertaken time. But the huge budget deficits have an impact strong adjustment measures to restore financial in the opposite direction. One result is to dampen stability, increase debt-servicing capacity, and prospects for business investment, particularly improve their creditworthiness. There also has for long-lived investment with relatively slower been a major cooperative effort among the lend- "pay-out." But that investment is what is need- ing banks to agree upon financing programs ed to revitalize some of our basic industries and involving the restructuring of existing debts and to support productivity generally. provision of some new loans. Some of those same industries also suffer from At the center of this process have been the depressed exports or strong import competition. coordinating efforts of the International Mone- To the extent that large capital inflows are in- tary Fund (IMF). On several previous occasions duced by pressures on our domestic capital and when I have testified before the Congress, I have credit markets, those inflows have contributed to urged prompt action to bolster the resources of maintaining the dollar at "artificially" high lev- the IMF. However, as you know, the work on els, viewed from the perspective of the current that important legislation has not been completcompetitive position of our industry. In the short ed. run, those capital inflows may help to moderate International understandings look toward acpressures on the financial markets. But, viewed tion before the end of next month, so time is in a longer perspective, we have the irony of the growing short. Apart from the actual funds inlargest and richest country in the world in effect volved, our failure, alone among nations, to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 845 participate in this effort would send a strong there is concern about whether appropriate remessage around the world that we do not support straint of money and credit growth will be mainthe cooperative efforts to manage and contain the tained in the face of sustained huge deficits. debt problems of the developing countries. Put There are strong grounds for believing that positively, participating in the proposed increase these attitudes and expectations may be lagging in IMF resources is a necessary and prudent behind reality and that underlying inflation rates investment in our own future. are lower—and can continue to move lower— Another important element in dealing with the than is generally perceived. Indeed, with the current external financing problems of develop- period of low inflation still lengthening, with ing countries is a concerted effort to maintain the spare capacity still extensive in many sectors, flow of bank credit to these countries. The with strong domestic and international competiquestion is sometimes raised as to whether such tion, and with labor amply available, there is a lending will be at the expense of lending to rare opportunity to "build in" greater stability. domestic borrowers and the expansion of our Whether that optimistic view will, in the end, own economy. In that connection, I would em- prove correct depends, in part, on the attitudes phasize the new bank lending to these countries and behavior of business and labor. We currently will, in the aggregate, be at a substantially re- see strong efforts to contain costs and improve duced pace from that of recent years, and as I efficiency in industries subject to the most inhave noted, on balance we are currently large net tense competitive pressure, whether because of borrowers from the rest of the world. In the depressed markets or other factors. In some absence of these cooperative lending efforts by other areas, new wage contracts or pricing polibanks and the IMF, I do not believe we could be cies appear to be out of touch, both with our successful in avoiding widespread defaults or recent experience with inflation and with current worse. The clear threat would be that such an conditions in labor or product markets generally. international financial disturbance would have Rather, we see symptoms of a kind of carmajor repercussions on our own credit markets, ryover—or a "hangover"—of attitudes instilled our interest rates, and our growth prospects—far in a more inflationary environment. Should those outweighing any effects on our markets of the attitudes be reinforced and generally prevail, our limited foreign lending required to maintain sta- effort to move toward sustainable economic bility internationally. growth with greater stability would be greatly Finally, I must emphasize the crucial impor- complicated. tance of maintaining the progress against infla- Experience suggests that expectations develtion. As I noted earlier, looking back, the recent oped over a lengthy period of accelerating infladata on prices and wages are favorable. Howev- tion are rarely changed suddenly. But they will er, it is also true that for a while some temporary change over time, so long as public policy refactors caused measured rates of inflation to mains steadfast in its commitment to an environexaggerate the slowdown in underlying rates of ment of greater price stability. inflation. As the temporary factors have subsid- Monetary policy inevitably must play a central ed, there has been some increase in reported role in that process, essentially by containing monthly rates of increase in prices from the growth of money and credit to amounts consisessentially flat record of the first half. That is tent with containing inflation over time. I doubt not, in itself, surprising, but it does warn against that such efforts can ever be reduced, in a any sense of complacency. complex, changing economy like ours, to a sim- The fact is that there continue to be deep- ple mechanical formula to govern growth in one seated concerns both in financial markets and measure of the money supply or another. For among the general public that more strongly instance, in the midst of both institutional and inflationary trends could soon resume. The expe- economic change last year and during the early rience of the 1970s with accelerating inflation, part of 1983, the Federal Reserve accommodated despite some cyclical "pauses," is still deeply faster growth in some of the various monetary ingrained in people's minds, and, looking ahead, aggregates than it had planned earlier, respond- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 Federal Reserve Bulletin • November 1983 ing in part to the visible evidence of a pro- ing moderate increases in late spring and early nounced slowdown in the turnover, or "veloci- summer. But the looming budget deficits remain as ty," of money. With some indications that more a focus for doubts about the future. normal patterns may be returning, and with the In conclusion, the economic situation, in its momentum of recovery strong, limited steps broadest terms, does not differ dramatically from were taken to resist monetary and credit growth the situation that was apparent at midyear. Curduring the spring and early summer. In a real rent economic indicators have continued to show sense, in a climate sensitive to inflation and the a strongly growing economy coupled with only possible future inflationary implications of cur- moderate rates of inflation. At the same time, rent policy, timely steps to preempt excesses can concerns about the longer-run outlook that were avert the need for much stronger action later. apparent at midyear are still with us today. Now, In recent weeks, all the monetary and credit as then, we broadly know what policies are aggregates have moved comfortably within the needed to provide greater assurance of sustained target ranges, easing concerns of a surge in liquid- economic growth and lasting price stability. ity growth. Also, interest rates, for the most part, What remains to be done is to implement those have edged slightly lower in recent weeks, follow- policies. • Statement by J. Charles Partee, Member, Board however, we do have some differences with you, of Governors of the Federal Reserve System, Mr. Chairman, on the details of how to implebefore the Subcommittee on Financial Institu- ment the repeal. In addition, we believe it would tions Supervision, Regulation and Insurance of be desirable to couple a move in this direction the Committee on Banking, Finance and Urban with action to begin paying interest on required Affairs, U.S. House of Representatives, October reserve balances held at Federal Reserve Banks. 27, 1983. Finally, as you requested, I will discuss issues associated with brokered deposits. I appreciate this opportunity to give the views of the Federal Reserve Board on proposals to permit the payment of interest on demand deposits. HISTORY AND CURRENT IMPACT OF The Board supports repeal of the existing prohi- PROHIBITING INTEREST ON DEMAND bition on interest payments on demand deposits. DEPOSITS We believe that such a step is appropriate at this time in light of the vast changes in banking and The prohibition of the payment of interest on financial markets over the past 50 years, and that demand deposits was first put in place 50 years the benefits in terms of enhanced return to some ago in the midst of the banking crisis that accomdepositors and a more efficient use of our na- panied the deepening economic depression. tion's resources will outweigh the temporarily Banks that were members of the Federal Reserve adverse effects on bank profits. System were banned from paying interest on The Congress has already recognized the dis- demand deposits in 1933 and this prohibition was tortion and inequity inherent in interest rate extended to insured nonmember banks in 1935 ceilings on time, savings, and household transac- (and to savings and loan associations in 1982 tion accounts, and in accord with its congres- when they were first authorized to offer demand sional mandate, the Depository Institutions deposits). The payment of interest on demand Deregulation Committee (DIDC) has eliminated balances was thought to have contributed to the ceilings on the great bulk of such deposits. Many Great Depression in two ways. First, it allowed of the same arguments apply to the prohibition of large city banks to bid funds away from rural interest on demand deposits, and the repeal of areas, primarily through the medium of "bankers this prohibition would complete the process of balances" or deposits of smaller banks in larger rate ceiling deregulation. As I will explain later, ones. This flow, it was believed, not only drained Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 847 credit from agriculture and small-town busi- one area of the country to another. The federal nesses, but also tended to foster speculative funds market provides an efficient way for banks excesses in securities markets because the large with surplus funds—often smaller institutions— banks allegedly were using the funds to make to make them available at market-determined loans to stock purchasers buying on margin. rates to banks with funding needs—often those Second, the unregulated payment of interest on located in money centers. Money center banks demand and other deposits was felt to have have come up with a variety of other instruments contributed to the weakened condition of the as well that allow them to bid for large volumes banking system. Excessive competition for funds of funds in what is in effect an interregional— on a rate basis was thought to encourage banks indeed, an international—dollar market. to generate needed revenue by making riskier In addition, for many banks the prohibition of loans on which subsequent defaults led to bank interest on demand deposits probably has not failures. In addition, prohibiting interest on de- significantly held down the overall cost of fundmand deposits was intended to reduce costs so ing. Customers, working with banks, have develthat banks could more easily afford the premiums oped sophisticated cash management techniques on newly introduced deposit insurance. that minimize the volume of balances in demand With the benefit of historical hindsight, we can accounts by moving funds on a short-term basis now see that some of the reasons given for between demand deposits and highly liquid inprohibiting interest payments on demand depos- struments paying market yields. Some instruits might not have been so compelling as they ments, such as money market deposit accounts seemed at the time. Bankers balances, or a close and money market funds, can even be substitutsubstitute for them, would have been held in any ed to a limited extent directly for demand deposcase, because they served a number of useful its in making transactions; others, including refunctions to smaller, rural banks, including pro- purchase agreements and Eurodollar deposits, viding a source of liquidity to meet seasonal can be acquired for periods as short as overnight swings in loans and deposits and facilitating to earn interest on surplus balances. Although check-clearing and other services received from these techniques were developed initially by and the larger banks. With respect to the effect of for large corporations, in an environment of high interest rate competition, any related deteriora- interest rates and improving technology, they tion in credit-underwriting standards was have increasingly become available to smaller swamped by general financial and economic customers as well. events, so that subsequent studies fail to show an Moreover, the balances remaining in demand association between rates paid on deposits and deposit accounts are by no means "free" to the the incidence of bank failure during the period. bank. Rather, in exchange for those balances the I would note also that the prohibition of inter- bank provides a variety of services to demand est rates on demand deposits has not prevented deposit holders, charging considerably less than the emergence of close, interest-bearing substi- their cost. In this way, depositors earn "implictutes whose use has greatly eroded whatever it" interest on their funds in demand deposits. effectiveness rate limitations once had. Large These services include check clearing, deposit account holders, including business corporations processing, and other transactions associated and others, long ago began utilizing a variety of directly with the use of the demand account instruments and techniques enabling them to itself, and they may involve other banking funcminimize the impact of the inability to earn tions, such as loan commitments, wire transfers, interest on demand deposit balances. In 1980 the processing credit card drafts, and payroll prepa- Congress authorized the nationwide availability ration. Banks commonly inform businesses holdof interest-bearing transaction accounts for ing demand deposits what level of balances they households and nonprofit organizations and, in must hold so that the bank's earnings from the 1982, for governmental bodies. zero-interest balances cover the expense of pro- Certainly, the absence of interest on demand viding the services. deposits has not inhibited the flow of funds from When businesses use cash management tech- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

848 Federal Reserve Bulletin • November 1983 niques to keep their balances to the minimums a better balance between their use of each type of set by the banks, the implicit interest return to service and its cost to them. the holder probably about matches the market- Of course, not all bank customers will benefit. determined interest rate that would be paid, and Households making heavy use of services may the prohibition of interest on demand deposits find their net compensation reduced by the suboffers no cost savings to banks. However, many stitution of taxable, explicit returns for tax-free smaller businesses and households still holding implicit yields on deposit balances, while service demand deposits may not have the expertise or charges, which are not tax deductible, rise. To time available to manage their demand accounts accommodate these customers, banks may conthat closely. These account holders are earning tinue to offer accounts paying little or no explicit some implicit interest from the services they interest and carrying reduced service charges to receive, but that compensation is likely to be depositors whose balances are adequate to combelow competitive interest rates, especially for pensate for their use of services. However, holders of relatively large, inactive accounts. banks are not going to be able to allow customers whose demand deposits are small relative to the use of services to continue to be subsidized in this fashion, and these depositors will face a THE EFFECT OF ALLOWING INTEREST higher cost of banking. On balance, however, the TO BE PAID ON DEMAND DEPOSITS movement toward explicit and full pricing of services and deposits should improve and ratio- Repeal of the prohibition of interest on demand nalize the provision and use of banking services deposits will affect the banking business in a in this country. number of important ways. In general, banks will For banks, earnings will be affected by the probably move more rapidly to explicit pricing of balance between the cost of paying interest on the services they offer customers and away from the deposits and the rise in revenue from the asking for low- or no-interest compensating bal- explicit pricing of services. An important factor ances. Interest rates on the various types of in this regard is the competitive environment; deposits available at banks and thrift institutions bank earnings could be reduced substantially if a are likely to depend primarily on the maturity of fierce struggle for depositors' dollars develops, the deposit rather than on what the deposit is with excessive interest rates paid on demand used for. Just how this process will evolve and balances or continued underpricing of services precisely what its effects might be cannot be being used as "come-ons" to lure depositors predicted with confidence, but some broad out- from other institutions. But our recent experilines can be discerned. ence with rates on Super NOW (negotiable order Some bank customers will stand to benefit, of withdrawal) and money market deposit acespecially those holding higher demand balances counts indicates that after an introductory perithan needed to compensate for the services they od, they have been kept about in line with are now receiving. As I indicated before, the potential returns to banks and thrifts. Therefore, most important class of such customers probably as a generality, I think it reasonable to expect is small to medium-sized businesses. They will that interest paid on demand deposits and rates be able to realize a return on transaction bal- charged for services would reflect fairly quickly ances without the expenditure of time and money the underlying investment opportunities and to learn about and utilize sophisticated cash costs of banks. management techniques. Those already employ- Under these circumstances, banks that are ing such techniques will be free to redirect re- now earning more on their investment of intersources into more productive uses, since inter- est-free deposits than they are incurring in unreest-earning demand accounts could provide a covered costs to provide subsidized services direct and competitive outlet for holding liquid would experience some downward pressure on funds. In addition, more explicit pricing of bank earnings. The intensity of this pressure will deservices should help all bank customers achieve pend also on how rapidly deposit funds are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 849 shifted into accounts paying explicit interest er earnings benefit banks are receiving from the rates. Eventually, the bulk of all transaction prohibition of interest on demand deposits is funds likely would be held in such deposits. But rapidly eroding in any case. initially, some holders may not take the trouble From a monetary policy perspective, the payto change accounts, and some, as noted above, ment of interest on demand deposits could create may prefer the combination of no interest and more uncertainty with respect to formulating low service charges they now are receiving. The monetary targets and interpreting incoming inextent of the shifting will depend in part on the formation about money growth. The level and structure of the legislation—whether, for exam- behavior of demand deposits relative to income ple, the DIDC is empowered to put the proposed and prices is likely to change as these deposits $2,500 floor on decontrolled balances at first— become more attractive vehicles for holding liqand on the marketing approach of the institu- uid savings, rather than being used almost exclutions. sively for transaction purposes. With competi- The negative impact of demand deposit inter- tive interest rates, some of the funds that are now est on earnings will not be distributed equally normally shifted to close substitutes for demand across depository institutions. Thrift institutions, deposits will remain in these accounts. At the for example, have very few demand deposits, same time, some of the balances now held in and they would welcome the opportunity that a demand deposits solely to compensate banks for lifting of the ceiling would give them to compete services received will be invested elsewhere as with banks for business deposits. Large, whole- explicit charges are placed on these services. sale-type banks that do a sizable share of their The uncertainties are likely to be greatest in business with more sophisticated corporations the transition period, when deposit holders are also may not feel much of an impact, since these adjusting their behavior to the availability of corporations probably already are getting a mar- interest-earning accounts and explicit prices for ket return on their deposits. Rather the effect will services. The problem, however, is one of debe felt most keenly by small and medium-sized gree, since we are already facing similar difficulbanks, and large retail branch systems—espe- ties with Ml, our measure of transaction money, cially those with a disproportionate share of as a result of the movement of household funds demand deposits from small and medium-sized into NOW and Super NOW accounts. Moreover, businesses. It is impossible to estimate with any by inducing the utilization of demand deposit precision just how large this effect would be, and substitutes and the spread of cash management obviously it will vary quite a bit among banks, techniques, the current regulatory framework depending on the particular situation of the insti- has created its own problems for monetary politution. But it does seem possible that some cy, which the payment of interest on demand classes of banks could be affected considerably, deposits would tend to reduce. The Federal at least until they have had time to make other Reserve has already had to accept and adjust to adjustments in lending rates, service charges, the need for increased flexibility when impleand other fee income. menting policy in a changing financial environ- As the entire spectrum of banks' revenues and ment, and I feel confident that we could deal with costs adjusts over time to the new situation, the the effects of the advent of interest on demand initial adverse effect on earnings should tend to deposits as well. diminish. Even in the absence of the initiative on demand deposit rates, many of these same adjustments probably would become necessary. IMPLEMENTATION OF INTEREST ON Household transaction deposits already have DEMAND DEPOSITS been significantly deregulated and are slated for complete interest rate deregulation by 1986, and Although the Federal Reserve Board shares the it has been evident for some time that careful desire to permit interest to be paid on demand cash management techniques have been spread- deposits, we do have some concerns about how ing to more and more businesses. Thus, whatev- this is to be implemented. Generally, we favor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 Federal Reserve Bulletin • November 1983 the approach in H.R. 3895, which you introduced level only slowly. Decontrol of demand deposit at the request of the DIDC. It is my understand- interest rates would allow thrifts and nonmember ing, Mr. Chairman, that your own bill differs banks to avoid full reserve requirements on from the DIDC proposal in three respects. household accounts for the remaining transition- First, your bill would eliminate the current al years by transferring the funds already in restrictions limiting thrift-institution checking ac- NOW accounts to demand deposits. The result counts for businesses to those with other cus- would impose an additional, unfair competitive tomer relationships. This action, it seems to us, disadvantage on member banks. is not appropriate at this time. Thrifts are still in Let me reiterate, Mr. Chairman, that our disthe process of adapting their business strategies agreements are related to technical matters conto the new powers they obtained only last De- cerning the precise way interest on demand cember. The Federal Reserve believes that the deposits would be phased in—not to the fundaquestion of a still broader scope for the checking mental intent of your bill, on which we are in account authority of thrifts should be addressed agreement. later on, when the wider issues concerning the structure and organization of the financial system are considered. Second, we believe that the DIDC should have INTEREST ON RESERVES the authority to decontrol demand deposits in a fashion parallel with NOW accounts. As you In addition, the Board would urge that any know, NOW account interest rates are still regu- legislation to eliminate the prohibition of interest lated for accounts of less than $2,500—a mini- on demand deposits include a plan to begin mum that will drop to $1,000 in January 1985 paying interest on required reserve balances at before total elimination in the spring of 1986. If the Federal Reserve. The two steps are complethe same minimum were not imposed for inter- mentary—interest on reserves will reinforce est-bearing demand deposits, the DIDC would some of the beneficial effects of allowing interest need to end the regulation of NOW accounts on demand deposits while alleviating some of the immediately, and probably also of savings ac- short-run impact on bank earnings. counts. In the absence of such action, a sizable Reserve requirements serve a vital and effivolume of funds in savings accounts and smaller cient role in the conduct of monetary policy; they NOW accounts would simply shift to deregulated are the fulcrum through which policy actions demand deposits. The effect on the earnings of affecting reserve balances are transmitted to the banks and thrifts could be substantial, and I depository institutions and through them to the would prefer to see the floor phased out as the general public. But it is not necessary that re- DIDC has proposed. At thrift institutions in serve balances be interest-free. In their present particular, the need to pay higher rates on $185 form, reserves act as a tax on the institutions billion of savings deposits could have very seri- forced to hold them, which, like any other tax, ous consequences on a still weakened industry. probably is partly absorbed by the institutions Finally, we would urge that the Federal Re- and partly passed on to the public in the form of serve be allowed to impose full transaction re- lower deposit rates or higher service charges. serve requirements on increases in demand de- Such a tax might be justifiable at a time when the posits at each institution from the date of government also was setting rate ceilings that enactment, as in the DIDC bill. This provision is held down the cost of deposits, but these ceilings necessitated by the nature of the phase-in of will soon be gone. By enabling depository instireserve requirements for nonmember banks and tutions to compete for savers' dollars on an equal thrifts under the Monetary Control Act. The footing with other intermediaries, payment of Congress directed that NOW accounts be subject interest on required reserves could increase the to full transaction account reserve requirements flow of funds through banks and enable deposiimmediately, while requirements on demand de- tors to enjoy the maximum benefits of deposit posits would be brought up to the NOW account rate deregulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 851 We recognize that there are some difficulties BROKERED DEPOSITS associated with the proposal that market interest rates be paid on such reserves. For example, You asked, Mr. Chairman, that I discuss possimovements in the monetary aggregates—espe- ble regulatory approaches to dealing with probcially the narrow transaction aggregate Ml— lems that may arise in association with bank or might become even more difficult to interpret if thrift use of brokers to obtain deposits. As you this substantial regulatory cost, which would know, Chairman Volcker already has responded tend to force interest rates to be lower on trans- to your request for suggestions on this subject, action accounts than on other deposits, is elimi- and I have attached his letter for reference.1 nated. But by removing one more incentive for Briefly, our view is that deposit brokering has people to find new and innovative methods of a legitimate role to play in our financial system. avoiding holding reservable deposits, interest on By channeling funds from areas in which they are reserves, along with interest on demand depos- in surplus to areas of relative shortage, money its, may in time contribute to a more stable brokerage is but one of a number of similar financial environment and hence to greater ease activities that contribute to the efficient functionin making monetary policy. ing of our financial markets. By and large, this Interest on reserves would also result in a loss works to the benefit of depositor, depository of Treasury revenue. Currently, about $20 billion institutions, and the economy in general. of reserve balances are held at the Federal Re- At the same time, we recognize that deposit serve, and with the System's portfolio yielding brokerage has been subject to abuse, particularly around 10 percent, this amount generates about by troubled institutions that have been willing to $2 billion of revenues annually that are available pay large premiums for brokered funds to bolster to be remitted to the Treasury. Of course, a their deposit base. Recently, this practice has sizable part of any interest paid out to banks and been facilitated by the technique of placing large thrifts would be recaptured through increased sums with a given institution and parceling them tax payments by those institutions and their out in pieces of $100,000 or less, so that the depositors. Nonetheless, at a time when very holdings of each participating depositor are fedlarge federal deficits seem in prospect for the erally insured. As a result, any market discipline indefinite future, the loss of revenues is a serious associated with risk is undermined, and the dematter. posit insurance funds are faced with potentially To spread the fiscal effects of such a move, much larger calls on their assets if the troubled therefore, interest payments on reserve balances institution subsequently fails. might be phased-in over a number of years. This Since there is the possibility of abusing an could be done by gradually increasing the rate implied fiduciary relationship between broker paid on reserve balances until it eventually and deposit customer, it may be appropriate to reached its final level—perhaps keyed to the require registration and regulations of such Federal Reserve's earnings on its portfolio of firms, perhaps along the lines of the Investment Treasury bills. Alternatively, full interest could Advisers Act of 1940 already being administered be paid initially only on the reserves held against by the Securities and Exchange Commission. certain types of deposits, adding to the eligible The application of suitability standards and disclasses of deposits over time. This would be closure requirements similar to those in this act consistent in its initial stages with the proposals to deposit brokers could be quite beneficial. now before the Congress to have the Federal The most serious aspect of the problem, how- Reserve pay interest on reserves held against ever, has been the use of brokered deposits by money market deposit and Super NOW ac- troubled institutions, which we believe can best counts. Its disadvantage is the need to allocate be approached through closer supervision of the reserve balances to deposit classes, and the depository institutions themselves. The first rearbitrary competitive handicap that deposits still subject to the reserve "tax" would incur until 1. The attachments to this statement are available on request from Publications Services, Board of Governors of the phase-out is complete. the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 Federal Reserve Bulletin • November 1983 quirement is to identify institutions that are rely- monitoring of the amount and distribution of ing heavily on brokered deposits, or that have brokered funds and the identification of instituincreased such reliance sharply over a short tions in which brokered deposits account for an period of time. This finding would alert the unusual proportion of total funding. I would primary supervisors of these institutions to the envisage a follow-up review of all such instituneed for in-depth reviews to ascertain whether tions, probing in greater depth the sources, this practice indicated that the institution was terms, and conditions of the brokerage arrangefacing fundamental problems, and to take reme- ments. It seems to me that such reports, along dial action as warranted. with on-site inspections when indicated, would Beginning with the quarterly call report for enable supervisors to discover and take timely September 30, 1983, banks have been required to steps against any abusive practices that may be report the volume of deposits obtained through facilitated by the availability of brokered brokers. This requirement will make possible the funds. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

853 Announcements NEW FEE SCHEDULES FOR CHECK Federal Reserve System comparison of check collection costs and revenues, 1983 and 1984 COLLECTION SERVICES Millions of dollars, except as noted The Federal Reserve Board has approved new Change fee schedules for the check collection services of Item 1985 1984 Amount Percent the Federal Reserve Banks in 1984, effective December 1, 1983. Operating costs 317.5 331.5 14.0 4.4 PSAF 12.7 45.5 2.8 6.6 The 1984 check collection fees are generally Float value 16.8 42.0 25.2 150.0 higher than in 1983, due mainly to the inclusion Total costs to be recovered 377.0 419.0 42.0 11.1 of the value of Federal Reserve check collection Revenue 375.4 423.0 47.6 12.7 Net revenue (1.6) 4.0 5.6 float in the projected costs of providing check collection services in 1984. Such float is the value of checks for which the Federal Reserve Reserve Banks have reduced check float by has given credit to depository institutions that approximately half from June through August sent the checks to the Federal Reserve for collec- 1983: that is, from a daily average in June of $1.6 tion, but for which the Federal Reserve has not billion to $823 million daily in August. It is yet collected from the institution on which the anticipated that check float will be further rechecks were drawn. duced in 1984 to an estimated daily average of Under the Board's program to eliminate and $450 million. Reductions in check float decrease price Federal Reserve check float—as required the amount that would otherwise have to be by the Monetary Control Act—the value of float added to check collection fees to recover the cost remaining after implementation of operational of such float. changes designed to reduce such float was added Following are examples of basic check collecto the costs of the System's check collection tion fees at the head offices of the 12 Federal service beginning October 1. Reserve Banks. Check collection services are Including float costs of approximately $42 mil- priced on a local-office basis. Therefore, fees will lion, total costs of the Federal Reserve's check vary according to location. Moreover, fees vary services for 1984 are estimated to be $419 mil- according to a number of other factors, such as lion, an increase of approximately 11 percent deposit times, whether checks are delivered to over 1983 costs. This cost includes the private sector adjustment factor (PSAF), which is the cost of capital and taxes that would be paid if the Examples of basic check collection fees services were performed by private firms. With- Cents per item out check float costs, total operating costs for Regional check 1984 would have increased 4.4 percent. The Office City processing center Reserve Banks have projected 1984 revenues Boston 1.7 2.2 from check collection fees at $423 million. New York 3.3 Philadelphia.., 1.9 2.7 The accompanying table compares projected Cleveland 1.7 2.2 Richmond 1.7 2.3 1983 and 1984 Federal Reserve check collection Atlanta 1.5 2.1 costs and revenues. Chicago 2.7 3.6 St. Louis 2.6 2.6 In approving increases in check collection fees Minneapolis... 2.0 2.5 Kansas City... 2.3 for 1984, the Board noted that operational Dallas (local).. 1.6 2 A changes in check collection implemented by the San Francisco. 2.0 2.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 Federal Reserve Bulletin • November 1983 the Federal Reserve sorted or unsorted, the costs of 1982. The Board requested comment by Noof returning to the sender checks that cannot be vember 25, 1983. collected, and the number of checks received In addition, the Board has requested comment from a sender that are not in condition to be by November 30, 1983, on a proposal to commachine-proce s sed. pletely revise Regulation X (Rules Governing Borrowers Who Obtain Securities Credit). REGULATION L: AMENDMENTS REVISED REGULATION T: NEW DATE FOR COMPLIANCE The Federal Reserve Board has announced that the effective date of amendments to its Regula- The Federal Reserve Board has announced that tion L (Management Official Interlocks) apit is deferring the effective date for compliance proved in August will be November 30, 1983. with its newly revised Regulation T (Credit by Although the Board approved its amendments Brokers and Dealers) to March 31, 1984. earlier, the effective date could not be set until The Board deferred the effective date of the the other federal regulators of depository institucompletely revised regulation, which was origtions had approved corresponding changes in inally November 21 (or any earlier date after their regulations. The five federal regulators (Of- June 20, 1983), in response to requests by brofice of the Comptroller of the Currency, Federal ker-dealers encountering operational problems Reserve System, Federal Deposit Insurance Corin conforming their computer systems to the poration, Federal Home Loan Bank Board, and requirements of the revised regulation. National Credit Union Administration) have now The new regulation governing credit extended published a joint set of amendments affecting by brokers and dealers was adopted by the Board management interlocks among depository orga- May 16, 1983. nizations and establishing the effective date of the amendments. The joint rules do not alter the amendments to Regulation L approved by the EXPANSION OF QUARTERLY SUBSCRIPTION Board in August. TAPES FOR REPORTS OF CONDITION AND INCOME PROPOSED ACTIONS The Board has announced an expansion of the quarterly subscription tapes for the Reports of The Federal Reserve Board has requested com- Condition and Income to include nine categories ment by November 30, 1983, on proposed revi- of data. At the same time, the price charged for sions to its procedure for calculation of the the tapes will be increased from $150 to $200 per private sector adjustment factor (PSAF). As pro- tape per reporting period. vided in the Monetary Control Act of 1980, the The subscription price includes complete doc- PSAF is an allowance for the taxes that would umentation and applies to all reporting periods. have been paid and a return on capital had the Orders with remittance should be addressed to Federal Reserve's priced services been furnished Publications Services, Board of Governors of the by a private sector firm. Federal Reserve System, Washington, D.C. The Board is also requesting comment on an 20551. alternative method of determining the income tax Beginning with reports for June 1983, the rate used in calculating the PSAF. subscription tape will contain the following data The Federal Reserve Board has also proposed files: (1) consolidated report of condition-domeschanges in its Regulation O (Loans to Executive tic only, FFIEC 010 and FFIEC 012 (RCON); (2) Officers, Directors, and Principal Shareholders consolidated foreign and domestic report of conof Member Banks) to conform the regulation to dition, FFIEC 014 (RCFD); (3) large-bank supthe Garn-St Germain Depository Institutions Act plement to the report of condition, FFIEC 015 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 855 (RCOS); (4) report of assets and liabilities of SYSTEM MEMBERSHIP. U.S. branches and agencies of foreign banks, ADMISSION OF STATE BANKS FFIEC 002 (RIBA); (5) quarterly report of international banking facility accounts, FR 2073-5; The following banks were admitted to member- (6) report of condition for banking Edge Act and ship in the Federal Reserve System during the Agreement corporations, FR 2886b (EDGE); (7) period October 10-November 10, 1983. consolidated report of income, FFIEC Oil, FFIEC 013, FFIEC 013S (RIAD); (8) large-bank California supplement to the report of income, FFIEC 015 Los Angeles Guardian Bank (RIAS); and (9) report of past due, nonaccrual, San Jose Silicon Valley Bank and renegotiated loans and lease financing re- Florida ceivables, FFIEC 021a,b,c (PDNL). Boca Raton Boca Bank Information about the content or format of the Oklahoma magnetic tapes may be obtained by telephoning Marietta Bank of Love County (202)452-2816, or by writing the Data Request Texas Coordinator in the Data Services Branch, Divi- Houston United Bank-Northwest sion of Data Processing, Board of Governors of Virginia the Federal Reserve System, Washington, D.C. Sterling Community Bank 20551. and Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 Legal Developments AMENDMENTS TO REGULATION D Section 204.2—Definitions The Board of Governors has amended Regulation D— Reserve Requirements of Depository Institutions (12 CFR Part 204) to modify the reserve requirements (b)(1) "Demand deposit" means a deposit that is on nonpersonal time deposits. Under the amendment, payable on demand, or a deposit issued with an nonpersonal time deposits with original maturities of original maturity or required notice period of less \-Vi years or more will be subject to a reserve require- than seven days, or a deposit representing funds for ment ratio of zero percent. Nonpersonal time deposits which the depository institution does not reserve the with original maturities of less than 1 -Vi years will right to require at least seven days' written notice of continue to be subject to a three percent reserve an intended withdrawal. The term includes all derequirement ratio. posits other than time and savings deposits. Demand deposits may be in the form of ^ * * * Section 204.9—Reserve Requirement Ratios (viii) an obligation to pay on demand or within (a)(1) Reserve percentages. The following reserve seven days a check (or other instrument, device, ratios are prescribed for all depository institutions, or arrangement for the transfer of funds) drawn on Edge and Agreement Corporations and United the depository institution, where the account of States branches and agencies of foreign banks: the institution's customer already has been debited. The term does not include an obligation that Category Reserve Requirement is a time deposit under § 204.2(c)(l)(ii). (2) A "demand deposit" does not include checks or Net Transaction Accounts: $0-$26.3 million 3% of amount drafts drawn by the depository institution on the Over $26.3 million $789,000 plus 12% of Federal Reserve or on another depository instituamount over $26.3 million Nonpersonal Time Deposits: tion. By original maturity (c)(1) "Time deposit" means (or notice period): Less than I-V2 years 3% (i) a deposit that the depositor does not have a I-V2 years or more 0% Eurocurrency Liabilities 3% right to withdraw for a period of seven days or more after the date of deposit. "Time deposit" includes funds: (A) payable on a specified date not less than AMENDMENTS TO REGULATIONS D AND Q seven days after the date of deposit; (B) payable at the expiration of a specified time The Board of Governors has adopted final amend- not less than seven days after the date of ments to Regulation D—Reserve Requirements of deposit; Depository Institutions (12 CFR Part 204) and Regula- (C) payable upon written notice which actually tion Q—Interest on Deposits (12 CFR Part 217) to is required to be given by the depositor not less reduce the minimum maturity of all time deposits to than seven days before the date of repayment; seven days. Comments from the public were favorable (D) such as "Christmas club" accounts and to adoption of this rule. The Board's action was taken "vacation club" accounts, that are deposited in light of recent actions by the Depository Institutions under written contracts providing that no with- Deregulation Committee ("DIDC") to authorize the drawal shall be made until a certain number of Money Market Deposit Account ("MMDA") and re- periodic deposits have been made during a moving the interest rate ceiling on time deposits of period of not less than three months even $2,500 or more with maturities of seven- to 31-days. though some of the deposits may be made within seven days from the end of the period; or 1. In section 204.2 by revising paragraphs (b)(1) and (E) that constitute a "savings deposit" which is (2), (c)(1), and (d)(1), and (f)(l)(v) to read as follows: not regarded as a "transaction account;" and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 857 (ii) borrowings, regardless of maturity, represent- (A) payable on a specified date not less than ed by a promissory note, an acknowledgment of seven days after the date of deposit; advance, or similar obligation described in section (B) payable at the expiration of a specified time 204.2(a)(l)(vii) that is issued to, or any bankers' not less than seven days after the date of acceptance (other than the type described in deposit; 12 USC 372) of the depository institution held by, (C) payable upon written notice which actually any office located outside the United States of is required to be given by the depositor not less another depository institution or Edge or agree- than seven days before the date of repayment; 1 ment corporation organized under the laws' of the or United States, to any office located outside the (D) such as "Christmas club" accounts and United States of a foreign bank, or to institutions "vacation club" accounts, that are deposited whose time deposits are exempt from interest rate under written contracts providing that no withlimitations under section 217.3(g) of Regulation Q drawal shall be made until a certain number of (12 CFR 217.3(g)(e)). periodic deposits have been made during a period of not less than seven days from the end * H< * * * of the period; and (d)(1) "Savings deposit" means a deposit or account (ii) an "international banking facility time de- (i)(A) with respect to which the depositor is not posit." required by the deposit contract but may at any time be required by the depository institution to give written notice of an intended withdrawal (e) "Savings deposit" means a deposit — not less than seven days before withdrawal is ^JJ * * * made, and that is not payable on a specified (2) With respect to which the depositor is not date or at the expiration of a specified time after required by the deposit contract but may at any time the date of deposit; and be required by the bank to give written notice of an intended withdrawal not less than seven days before * * * ** such withdrawal is made, 3 and that is not payable (f)(1)*** on a specified date or at the expiration of a specified (v) a time deposit represented by a promissory time after the date of deposit. note, an acknowledgment of advance, or similar (3)(i) * * * obligation described in section 204.2(a)(l)(vii) that (ii) Deposits in which any beneficial interest is is issued to, or any bankers' acceptances (other held by a corporation, partnership, association, or than the type described in 12 U.S.C. 372) of the other organization that is operated for profit or is depository institution held by, any office located not operated primarily for religious, philanthropoutside the United States of another depository ic, charitable, educational, fraternal or other simiinstitution or Edge or agreement corporation or- lar purposes, or that is not a governmental unit ganized under the laws of the United States, to described in subparagraph (i)(C) may not be clasany office located outside the United States of a sified as deposits subject to negotiable orders of foreign bank, or to institutions whose time depos- withdrawal, except as authorized by section its are exempt from interest rate limitations under 217.7(g). section 217.3(g) of Regulation Q (12 CFR (4) "Savings deposit" also means a deposit issued 217.3(g)). pursuant to section 217.7(c)(2)(ii) or section 217.7(g) with respect to which the member bank reserves the right to require at least seven days' notice prior to 2. Section 217.1 is amended by revising paragraph withdrawal or transfer. (b)(1), the initial phrase in paragraph (e), and paragraphs (e)(2), (3), and (4) to read as follows: 3. The second sentence of section 217.5(c)(2) is Section 217.1—Definitions amended by removing "14" and inserting "seven" in its place. (b)(1) "Time deposit" means (i) a deposit that the depositor does not have a 1. A deposit with respect to which the bank merely reserves the right to withdraw for a period of seven days or right to require notice of not less than seven days before any withdrawal is made is not a "time deposit" within the meaning of the more after the date of deposit. "Time deposit" above definition. 2 * * * includes funds: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 Federal Reserve Bulletin • November 1983 AMENDMENTS TO REGULATION Q Section 217.3—Interest on Time and Savings Deposits Pursuant to its authority under section 19 of the Federal Reserve Act, as amended, the Board has (a) * * * The effects of compounding of interest may amended Regulation Q—Interest on Deposits be disregarded in ascertaining the rate of interest (12 CFR Part 217) to incorporate rules of the Deposi- paid. * * * tory Institutions Deregulation Committee ("DIDC"), adopted pursuant to the Depository Institutions 3. Section 217.4 is amended in paragraph (f) by remov- Deregulation Act of 1980 (Title II of Pub. L. 96-221). ing "217.7(1)(2)" and inserting "217.7(e)(2)" in its The amendments to Regulation Q are technical in place, and paragraph (d) by revising subparagraph nature and conform the Board's rules to those of the (l)(iii) introductory text, by adding new subparagraph DIDC. (l)(iii)(D) and (E), by adding a new subparagraph (l)(iv), and by revising the last sentence of subpara- 1. Section 217.1 is amended in paragraph (b)(l)(iii) by graph (6) to read as follows: removing "217.7(1)" and inserting "217.7(e)" in its place, in paragraph (e)(4) by removing "217.7(m)" and Section 217.4—Payment of Time Deposits inserting "217.7(g)" in its place, and by revising Before Maturity paragraph (h) to read as follows: ^^ * * * * * * Section 217.1—Definitions (iii) The following minimum early withdrawal penalty shall apply to time deposit contracts entered into, renewed, or extended between June 2, 1980, and September 30, 1983, and that have not been (h) Obligations issued by the parent bank holding renewed or extended on or after October 1, 1983: company of a member bank. (A) * * * (1) For purposes of this part, the "deposits" of a (D) Notwithstanding subparagraphs (A) and member bank also includes an obligation that is (B), where a time deposit in an amount of (i) required to be registered with the Securities $2,500 to less than $100,000, with an original and Exchange Commission under the Securities maturity of 91 days, or any portion thereof, is Act of 1933; paid before maturity, a depositor shall forfeit an (ii) issued or guaranteed in whole or in part as to amount equal to at least all interest earned on principal and interest by the member bank's par- the amount withdrawn. ent which is a bank holding company under the (E) Notwithstanding subparagraph (A), where a Bank Holding Company Act of 1956, as amended nonnegotiable time deposit subject to an initial (12 U.S.C. 1841-50), regardless of the use of deposit of $2,500 or more, with an original proceeds; and maturity or required notice period of seven to (iii)(A) issued in a denomination of less than 31 days, or any portion thereof, is paid before $100,000 and with a stated maturity, notice maturity, a depositor shall forfeit an amount period or redemption period of less than seven equal to at least the greater of days or (1) all interest earned on the amount with- (B) issued in a denomination of less than $2,500 drawn from the most recent date of deposit, and with a stated maturity, notice period, or date of maturity, or date on which notice of redemption period of seven to thirty-one days. withdrawal was given, or (2) The term "deposits" does not include those (2) all interest that could have been earned on obligations of a bank holding company that are the amount withdrawn during a period equal subject to interest rate limitations imposed pursuant to one-half the maturity period or required to Public Law 89-597. notice period. (iv) The following minimum early withdrawal penalty shall apply to time deposit contracts entered into, renewed, or extended on or after October 1, 2. Section 217.3 is amended in paragraph (f) by remov- 1983: ing "217.7(1)" and inserting "217.7(e)" in its place (A) Where a time deposit with an original and by revising the second sentence of paragraph (a) to maturity or required notice period of seven to read as follows: 31 days, or any portion thereof, is paid before Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 859 maturity, a depositor shall forfeit an amount at Section 217.7—Supplement: Maximum Rates of least equal to the greater of Interest Payable by Member Banks on Time (1) all interest earned on the amount with- and Savings Deposits drawn from the most recent of the date of deposit, date of maturity, or date on which notice of withdrawal was given, or (2) all interest that could have been earned on (a) Time deposits of $100,000 or more, or with original the amount withdrawn during a period equal maturities or required notice periods of 32 days or to one-half the maturity period or the re- more, or IBF time deposits. quired notice period. (1) There is no maximum rate of interest presently (B) Where a time deposit with an original matu- prescribed on any time deposit of $100,000 or more, rity or required notice period of 32 days to one or with an original maturity or required notice year, or any portion thereof, is paid before period of 32 days or more, or on IBF time deposits maturity, a depositor shall forfeit an amount at issued under section 217.1(1). least equal to one month's interest earned, or (2) Except for IBF time deposits, a member bank that could have been earned, on the amount may permit additional deposits to be made to any withdrawn at the nominal (simple interest) rate time deposit with an original maturity or required being paid on the deposit, regardless of the notice period of 32 days or more at any time prior to length of time the funds withdrawn have re- its maturity or expiration of notice period without mained on deposit. extending the maturity or required notice period of (C) Where a time deposit with an original matu- the entire balance in the account. rity or required notice period of more than one (b) Time deposits with original maturities or required year, or any portion thereof, is paid before notice periods of seven to 31 days. No member bank maturity, the depositor shall forfeit an amount shall pay interest on any time deposit of less than at least equal to three months' interest earned, $2,500 with an original maturity or required notice or that could have been earned, on the amount period of 31 days or less at a rate in excess of 5-VA withdrawn at the nominal (simple) interest rate percent. being paid on the deposit, regardless of the (c) Savings deposits. length of time the funds withdrawn have re- (1) Except as provided in paragraph (g), no member mained on deposit. bank shall pay interest at a rate in excess of 5-VA percent on any savings deposit. (6) *** Except as provided in subparagraphs (l)(iii)(E) and (l)(iv)(A), when a time deposit is (d) Governmental unit time deposits. Except as propayable only after notice, for funds on deposit for at vided in paragraphs (a) and (e) and notwithstanding least the notice period, the penalty for early with- paragraph (b), no member bank shall pay interest on drawal shall be imposed for at least the notice any time deposit which consists of funds deposited to period. the credit of, or in which the entire beneficial interest is held by, the United States, any state of the United States, or any county, municipality, or political subdivision thereof, the District of Columbia, the Common- 4. Paragraph (c)(1) of section 217.5 is amended by wealth of Puerto Rico, the Virgin Islands, American removing "217.7(m)" and inserting "217.7(g)" in its Samoa, Guam, or political subdivision thereof in explace. cess of 8 percent. (e) Seven- to 31-day time deposits of $2,500 or more. 5. Section 217.6 is amended by removing paragraph (i). (1) Notwithstanding paragraph (d), a member bank may pay interest at any rate as agreed to by the 6. Section 217.7 is amended by revising paragraphs (a), depositor on any time deposit of $2,500 or more, (b), (c), and (d); by removing paragraphs (e), (f), (g), with a maturity or required notice period of not less (i), (j) and (k); by redesignating paragraph (m) as than seven days nor more than 31 days. However, a paragraph (g) and paragraph (h) as paragraph (f); member bank shall not pay interest in excess of the redesignated paragraph (g) is amended in subpara- ceiling rate for regular savings deposits or accounts graph (1) by removing "(m)(2)" in both places that it on any day the balance in a time deposit issued appears and by inserting "(g)(2)" in its place, and by under this paragraph is less than $2,500. redesignating paragraph (1) as paragraph (e) and revising (e)(1) and (e)(3) to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 Federal Reserve Bulletin • November 1983 (3) Where all or any part of a time deposit issued accounts), engages in the business of making commerunder this paragraph is withdrawn within one busi- cial loans, and is not covered by the exemption created ness day after the maturity date of the deposit or the by the Garn-St Germain Depository Institutions date of expiration of notice of withdrawal, no early Deregulation Act for FSLIC insured thrift instituwithdrawal penalty is required to be applied on the tions.1 Savings Bank accepts demand deposits and amount withdrawn. NOW accounts and engages in the business of making commercial loans.2 Its deposits are not insured by the FSLIC. Accordingly, Savings Bank is a "bank" for 5. Section 217.147 is revised to read as follows: purposes of the BHC Act. The application thus has been considered in light of the requirements of section Section 217.147—Premiums, Finders Fees, 3 of the Act pertaining to the acquisition of banks. Prepayment of Interest and Payment of Interest Applicant is a recently organized corporation in Merchandise formed for the purpose of becoming a bank holding company through the acquisition of Savings Bank and For regulatory provisions relating to premiums, find- National Bank. Savings Bank controls 42.2 percent of ers fees, prepayment of interest and payment of inter- the voting shares of National Bank, and will transfer est in merchandise refer to 12 C.F.R. 1204.109, these shares to Applicant. 1204.110 and 1204.111. Savings Bank, with deposits of approximately $429.7 million, is the largest savings bank and the fourth largest depository institution in New Hamp- BANK HOLDING COMPANY AND BANK MERGER shire, controlling 5.8 percent of all deposits in deposi- ORDERS ISSUED BY THE BOARD OF GOVERNORS tory institutions in the state.3 National Bank, with deposits of approximately $108.2 million, is the sixth Orders Under Section 3 of Bank Holding largest commercial banking organization and 19th larg- Company Act est depository institution in New Hampshire, controlling 2.73 percent of total deposits in commercial banks Amoskeag Bank Shares, Inc., in the state and 1.4 percent of total deposits in deposi- Manchester, New Hampshire tory institutions in the state. Upon acquisition of both Savings Bank and National Bank, Applicant would Order Approving Formation of a Bank Holding become the second largest depository organization in Company New Hampshire, with 7.2 percent of total deposits in all depository institutions in the state. Because of the Amoskeag Bank Shares, Inc., Manchester, New small increase in Applicant's share of total statewide Hampshire, has applied for the Board's approval un- deposits, the Board has determined that the transaction would have no significant effect on statewide der section 3(a)(1) of the Bank Holding Company Act concentration of banking resources. ("Act")(12 U.S.C. § 1842(a)(1)) to become a bank holding company through acquisition of all of the Savings Bank and National Bank each operate nine shares of Amoskeag Savings Bank, Manchester, New offices in the Manchester banking market, and Nation- Hampshire ("Savings Bank"), and 42.2 percent of the al Bank operates one office in the Nashua banking shares of Amoskeag National Bank and Trust Co., market.4 National Bank is the sixth largest of seven Manchester, New Hampshire ("National Bank"). commercial banks in the Nashua banking market with Savings Bank is an FDIC insured state-chartered mutual savings bank that accepts demand deposits and makes commercial loans. In connection with consummation with this proposal, Savings Bank will convert to a stock savings bank. 1. First NH Banks, Inc., 69 FEDERAL RESERVE BULLETIN 874 Notice of the application, affording opportunity for (1983). interested persons to submit comments and views, has 2. As of June 30, 1983, 9.21 percent of Savings Bank's total loans were real estate construction loans and real estate loans secured by been duly published. (48 Federal Register 39,993). The nonfarm and nonresidential properties. Slightly over 5 percent of time for filing comments has expired and the Board Savings Banks loans were commercial and industrial loans other than has considered the application and all comments re- those secured primarily by real estate. 3. All banking data are as of June 30, 1982. ceived. 4. The Manchester banking market is approximated by the Man- The Board has previously determined that a state chester Ranally Metropolitan Area (RMA), plus the towns of Weare, New Boston, Allenstown, Deerfield, Chester, and Derry, New Hampguaranty savings bank is a "bank" for purposes of the shire. The Nashua banking market is approximated by the Nashua Act if it accepts demand deposits (including NOW RMA minus the town of Brookline, New Hampshire. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 861 1.4 percent of total deposits in commercial banks in ties through a wholly-owned subsidiary. Applicant has that market. Because Savings Bank does not operate committed to divest the subsidiary within two years of in the Nashua market, consummation of the proposal consummation of this proposal, and not to engage in would have no effect on existing competition in that any activities that would not be permissible for a bank market. holding company under the Act without the Board's Savings Bank is the largest depository institution in prior approval. the Manchester market, controlling 28.2 percent of The financial and managerial resources and future total deposits in all depository institutions in the prospects of Applicant and the banks to be acquired market. National Bank is the third largest commercial are regarded as generally satisfactory. Accordingly, bank and sixth largest depository institution in the considerations relating to banking factors are consis- Manchester market, with 13.9 percent of total deposits tent with approval. Considerations relating to the in commercial banks in the market and 4.8 percent of convenience and needs of the community to be served total market deposits. Upon consummation of this also are consistent with approval. ^ proposal, Applicant would control 33.0 percent of total Based on the foregoing and other facts of record, the deposits in depository institutions in the Manchester Board has determined that consummation of the promarket.5 posed transaction would be in the public interest and Ordinarily, the affiliation of competing institutions that the application should be approved. The applicawith such large market shares might raise significant tion is approved for the reasons summarized above. competitive issues. In this case, however, no adverse The transaction shall not be consummated before the competitive effect would result from the proposal due thirtieth calendar day following the effective date of to the longstanding affiliation of these two institutions this Order or later than three months after the effective and the fact that their original affiliation did not date of this Order, unless such period is extended for eliminate any existing competition between them.6 good cause by the Board or by the Federal Reserve National Bank and Savings Bank were each formed Bank of Boston acting pursuant to delegated authority. de novo by the same organizers in 1848 and 1852, By order of the Board of Governors, effective respectively, and Savings Bank has owned 42.2 per- October 24, 1983. cent of National Bank's outstanding voting shares since 1880.7 The two institutions have been associated Voting for this action: Chairman Volcker and Governors through common ownership, common banking quar- Wallich, Teeters, Rice, and Gramley. Absent and not voting: ters and common advertising for over 130 years. Governors Martin and Partee. Approval of Applicant's proposal would not decrease competition since the proposal seeks to merely trans- JAMES MCAFEE, fer ownership of National Bank's stock from Savings [SEAL] Associate Secretary of the Board Bank to the holding company. Accordingly, consummation of the proposal would not result in any significant lessening of existing competition in the Manches- Dartmouth National Corporation, ter market. Hanover, New Hampshire Under New Hampshire law, Savings Bank is authorized to engage in real estate development and invest- Order Approving Formation of a Bank Holding ment activities broader than those that are permitted Company for a bank holding company under the Act. Savings Bank in fact engages in real estate development activi- Dartmouth National Corporation, Hanover, New Hampshire, has applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)), to become a bank holding company by acquiring 100 percent of the voting shares of Dartmouth National Bank of Hanover, Hanover, 5. The Manchester banking market is the largest banking market in New Hampshire ("Bank"). New Hampshire in terms of total deposits. Nine commercial banking Notice of the application, affording opportunity for organizations, two savings banks, two savings and loan associations and fourteen credit unions operate in this market. interested persons to submit comments, has been 6. See First Monco Bancshares, Inc., 69 FEDERAL RESERVE BUL- given in accordance with section 3(b) of the Act. The LETIN 293 (1983); Texas East BanCorp, Inc., 69 FEDERAL RESERVE BULLETIN 636 (1983). See also Guaranty Bancshares, Inc., 65 FEDER- time for filing comments has expired, and the Board AL RESERVE BULLETIN 866 (1979). has considered the application and all comments re- 7. Savings Bank is not a bank holding company because of an ceived in light of the factors set forth in section 3(c) of exemption in section 2(a)(5)(F) of the Act for certain mutual savings banks. (12 U.S.C.§ 1841(A)(5)(F)). the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 Federal Reserve Bulletin • November 1983 Applicant, a nonoperating New Hampshire corpora- GN Bancorp, Inc., tion, was organized for the purpose of becoming a Chicago, Illinois bank holding company by acquiring Bank, which holds deposits of $78.2 million.1 Upon acquisition of Bank, Formation of a Bank Holding Company and Order Applicant would control the eighth largest bank in Approving Acquisition of a Bank New Hampshire and would hold approximately 2.4 percent of total deposits in commercial banks in that GN Bancorp, Inc., Chicago, Illinois, has applied for state. Consummation of this proposal would have no the Board's approval under section 3(a)(1) of the Bank significant effect on the concentration of banking re- Holding Company Act ("Act") (12 U.S.C. sources in New Hampshire. § 1842(a)(1)) to become a bank holding company Bank is the largest commercial banking organization through acquisition of Gladstone-Norwood Trust & in the Upper Connecticut Valley banking market2 and Savings Bank, Chicago, Illinois ("Bank"). holds approximately 29 percent of total deposits in Notice of the application, affording an opportunity commercial banks in the market.3 Neither Applicant for interested persons to submit comments, has been nor any of its principals is affiliated with any other given in accordance with section 3(b) of the Act. The unrelated banking organization in the market, and it time for filing comments has expired and the Board appears that consummation of the proposal would not has considered the application and all comments reresult in any adverse effects upon competition or ceived in light of the factors set forth in section 3(c) of increase the concentration of banking resources in any the Act (12 U.S.C. § 1842(c)). relevant area. Accordingly, the Board concludes that Applicant, a nonoperating company with no subsidcompetitive considerations are consistent with ap- iaries, was organized for the purpose of becoming a proval of the application. bank holding company by acquiring Bank, which holds The financial and managerial resources and future deposits of $47.6 million.1 Upon acquisition of Bank, prospects of Applicant and Bank are satisfactory. Applicant would control the 346th largest commercial Accordingly, considerations relating to banking fac- bank in Illinois, and approximately 0.05 percent of tors are consistent with approval. Although Applicant total deposits in commercial banks in the state. Condoes not anticipate any immediate changes in the summation of this proposal would have no significant services offered by Bank, considerations relating to effect on the concentration of banking resources in the convenience and needs of the community to be Illinois. served also are consistent with approval. Bank is the 186th largest commercial bank in the Based on the foregoing and other facts of record, the Chicago banking market,2 controlling approximately Board has determined that consummation of the trans- 0.08 percent of the total deposits in commercial banks action would be in the public interest and that the there. Neither Applicant nor any of its principals is application should be approved. On the basis of the affiliated with any other banking organization in the record, the application is approved for the reasons relevant market. It appears from the facts in the record summarized above. The acquisition of shares shall not that consummation of the proposal would not result in be made before the thirtieth calendar day following the any adverse effects upon competition and that competeffective date of this Order or later than three months itive considerations are consistent with approval. after the effective date of this Order unless such period The financial and managerial resources and future is extended by the Board or by the Federal Reserve prospects of Applicant and Bank are regarded as Bank of Boston, acting pursuant to delegated au- consistent with approval. Applicant has committed to thority. provide additional capital to Bank. As part of this By order of the Board of Governors, effective proposal Applicant will sell common stock prior to October 12, 1983. consummation of this transaction. Applicant will also incur debt but it appears that Applicant is capable of Voting for this action: Chairman Volcker and Governors servicing its debt while maintaining adequate capital at Martin, Wallich, Partee, Teeters, and Rice. Absent and not Bank. Accordingly, the Board finds considerations voting: Governor Gramley. relating to banking factors consistent with approval. JAMES MCAFEE, Considerations relating to the convenience and [SEAL] Associate Secretary of the Board needs of the community to be served are also consistent with approval. Thus, the Board has determined 1. Deposit data are as of March 31, 1983. 2. The Upper Connecticut Valley banking market is approximated by the towns of Canaan, Dorchester, Enfield, Hanover, Lebanon, Lyme, Oxford, and Plainfield, all in New Hampshire, and Hartford, 1. Banking data are as of June 30, 1982. Hartland, Norwich, Thetford, and Woodstock, all in Vermont. 2. The Chicago banking market is defined as Cook, DuPage, and 3. Market data are as of June 30, 1982. Lake Counties in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 863 that consummation of the transaction would be con- of the voting shares of two one-bank holding compasistent with the public interest and that the application nies: Northern Kentucky Bancshares, Inc., Falmouth, should be approved. Kentucky, which owns Falmouth Deposit Bank, Fal- On the basis of the record, the application is ap- mouth, Kentucky ("Falmouth Bank"); and Kentucky proved for the reasons summarized above. The trans- National Corporation, Alexandria, Kentucky, which action shall not be consummated before the thirtieth owns Kentucky National Bank, Walton, Kentucky calendar day following the effective date of this Order ("KN Bank"). The combined consolidated assets of or later than three months after the effective date of the chain are $36.3 million.2 Upon consummation of this Order, unless such period is extended for good this proposal, Applicant would become the third onecause by the Board or by the Federal Reserve Bank of bank holding company in the chain which will then Chicago acting pursuant to delegated authority. have combined consolidated assets of $149.4 million.3 By order of the Board of Governors, effective Bank operates exclusively in the Kenton County, October 4, 1983. Kentucky portion of the Cincinnati banking market where it is the eleventh largest of 39 banking organiza- Voting for this action: Chairman Volcker and Governors tions and controls 1.7 percent of the total deposits in Martin, Wallich, Partee, Teeters, Rice, and Gramley. commercial banks in the market.4 Bank and Falmouth Bank operate in separate markets and are prohibited JAMES MCAFEE, by law from branching into each other's markets; [SEAL] Associate Secretary of the Board therefore, their affiliation will not have an adverse effect on competition between Bank and Falmouth Bank. KN Bank, with total deposits of $15 million, Kentucky Bancorporation, Inc., operates exclusively in the Boone County portion of Alexandria, Kentucky the Cincinnati banking market where it is the 32nd largest of 39 banking organizations and controls 0.3 Order Approving Formation of a Bank Holding percent of the total deposits in commercial banks in the market. Although Bank also operates in this mar- Company ket, Kentucky law prohibits Bank and KN Bank from branching into the portion of the market where the Kentucky Bancorporation, Inc., Alexandria, Kenother is located.5 In view of these facts and the small tucky, has applied for the Board's approval under market shares controlled by Bank and KN Bank in this section 3(a)(1) of the Bank Holding Company Act of market, the Board concludes that consummation of 1956, as amended ("Act") (12 U.S.C. § 1842(a)(1)), to the proposal would not have any effects on competiform a bank holding company by acquiring at least 80 tion in the Cincinnati market. Accordingly, the Board percent of the voting shares of First National Bank and concludes that competitive considerations are consis- Trust Company of Covington, Covington, Kentucky tent with approval of the application. ("Bank"). Notice of the application, affording opportunity for Applicant proposes to become a bank holding cominterested persons to submit comments, has been pany through the acquisition of at least 80 percent of given in accordance with section 3(b) of the Act. The the voting shares of Bank. As part of the proposal, the time for filing comments has expired, and the Board Central Bancorporation, Cincinnati, Ohio ("Cenhas considered the application and all comments re- tral"), will acquire all of Applicant's nonvoting comceived in light of the factors set forth in section 3(c) of mon stock as well as 4.9 percent of Applicant's voting the Act (12 U.S.C. § 1842(c)). common stock. Central's proposed investment repre- Applicant is a nonoperating corporation organized sents 24.9 percent of Applicant's total equity. The for the purpose of becoming a bank holding company by acquiring Bank, which holds deposits of $94.5 million.1 Upon consummation of this proposal, Applicant would become the 36th largest of 336 banking 2. The chain banking data are as of June 30, 1983. organizations in Kentucky and would control 0.5 per- 3. Under the Board's Capital Adequacy Guidelines, 68 FEDERAL RESERVE BULLETIN 33 (1982), reprinted in Federal Reserve Regulacent of total deposits held by commercial banks in the tory Service, 113-1506, chain banking organizations with less than $150 state. million in combined assets should not be consolidated for the purpose of determining capital adequacy. Bank, Falmouth Bank and KN Bank Applicant's principal also controls a chain banking have primary capital to total asset ratios above the minimum required organization as a result of his ownership of 49 percent 7 percent level. Accordingly, this proposal meets the Board's Capital Adequacy Guidelines. 4. The Cincinnati banking market consists of Boone, Kenton and Campbell Counties, Kentucky; Hamilton (Cincinnati), and Clermont Counties, Ohio; portions of Warren and Butler Counties, Ohio; and 1. Banking data are as of December 31, 1982, unless otherwise Dearborn County, Indiana. stated. 5. Ky. Rev. Stat. § 287.180(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 Federal Reserve Bulletin • November 1983 Board has reviewed the terms of Central's acquisition The Lawton Company, and concludes that the investment is consistent with Sulphur, Louisiana the Board's Policy Statement on Nonvoting Equity Investments by Bank Holding Companies ("Policy Order Approving Formation of a Bank Holding Statement"), as well as prior decisions involving non- Company voting equity investments.6 In this regard, the Board notes that Central has committed not to exercise The Lawton Company, Sulphur, Louisiana, has apcontrol or a controlling influence over Applicant. plied for the Board's approval under section 3(a)(1) of Based on these facts and other facts of record, the the Bank Holding Company Act (12 U.S.C. Board concludes that Central would not control Appli- § 1842(a)(1)) (the "Act") to become a bank holding cant by virtue of the structure of the proposed invest- company by retaining 100 percent of the voting shares ment. of William T. Burton Industries, Inc., Lake Charles, In view of Central's equity investment in Applicant, Louisiana ("Burton"), a bank holding company by as well as Applicant's commitment not to redeem its virtue of its control of Calcasieu Marine National nonvoting common shares until its debt-to-equity ratio Bank, Lake Charles, Louisiana ("Bank"). Applicant is reduced below 30 percent, the Board's judgment is is a limited partnership composed solely of members that Applicant will have sufficient financial resources of the Burton family. to service its debt and serve as a source of financial Notice of the application, affording opportunity for strength to its subsidiary bank in the future. Thus, interested persons to submit comments, has been financial and managerial resources of Applicant and given in accordance with section 3(b) of the Act. The Bank are considered generally satisfactory and their time for filing comments and views has expired, and future prospects appear favorable. the Board has considered the application and all The Board believes that considerations relating to comments received in light of the factors set forth in the convenience and needs of the community to be section 3(c) of the Act (12 U.S.C. § 1842(c)). served are consistent with approval. Accordingly, the Burton became a one-bank bank holding company Board has determined that consummation of the trans- by virtue of the 1970 amendments to the Act. The action would be consistent with the public interest and Burton family has owned more than 85 percent of the that the application should be approved. shares of Burton prior to June 30, 1968, and may On the basis of the record, the application is ap- engage in a variety of nonbank activities that otherproved for the reasons summarized above. The trans- wise would be impermissible for bank holding compaaction shall not be made before the thirtieth calendar nies except for the exemption found in section 4(c)(ii) day following the effective date of this Order or later of the Act. 1 In 1981, Applicant was formed as an than three months after the effective date of this estate planning measure to hold the shares of Burton Order, unless such period is extended for good cause previously held directly by the Burton family. At the by the Board or by the Federal Reserve Bank of time of its formation, Applicant acquired shares of Cleveland, acting pursuant to delegated authority. Burton without the Board's prior approval under the By order of the Board of Governors, effective Act. Applicant has now applied to the Board to retain October 31, 1982. its interest in Burton and its indirect interest in Bank. Pursuant to section 4(a)(2) of the Act, Applicant Voting for this action: Chairman Volcker and Governors would be required to divest its nonbank activities Martin, Wallich, Partee, Teeters, Rice, and Gramley. within two years of becoming a bank holding company unless it became a successor to the exemption enjoyed JAMES MCAFEE, by Burton. After a review of the record, the Board has [SEAL] Associate Secretary of the Board determined that Applicant's acquisition of control of Burton and Bank did not alter either the control or 6. 68 FEDERAL RESERVE BULLETIN 413 (1982); 12 C.F.R. 1. Section 4(c)(ii) exempts from the prohibitions of section 4 § 225.143. See United Midwest Bancshares, Inc., 68 FEDERAL RE- SERVE BULLETIN 774 (1982); Valley View Bancshares, 61 FEDERAL a company covered in 1970 more than 85 percent centum of the RESERVE BULLETIN 676 (1975); Security Bancorp, Inc., 66 FEDERAL voting stock of which was collectively owned on June 30, 1968 and RESERVE BULLETIN 977 (1980). See also letter from William W. Wiles, continuously thereafter, directly or indirectly by or for members of Secretary of the Board, to J.A. Maurer, President, Security Corp., the same family, or their spouses, who are lineal descendants of Duncan, Oklahoma, June 23, 1982. common ancestors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 865 beneficial ownership of Bank. In this regard, Burton's by the Board, or by the Federal Reserve Bank of ownership of the voting shares of Bank has remained Atlanta, pursuant to delegated authority. unchanged by the transaction. Moreover, ownership By order of the Board of Governors, effective of Burton has changed only in that Burton's voting October 31, 1983. shares, which previously were owned directly by individual members of the Burton family, now are Voting for this action: Chairman Volcker and Governors owned indirectly by those same individuals through a Martin, Wallich, Partee, Teeters, Rice, and Gramley. company wholly-owned by the Burton family. This transaction was essentially a reorganization of the JAMES MCAFEE, corporate interests of the Burton family. Moreover, [SEAL] Associate Secretary of the Board Applicant has committed that its only activity will be the ownership of Burton's stock. Accordingly, the Board believes it appropriate to treat Applicant as a Merchants Bancorp, Inc., successor to Burton. Therefore, Applicant may retain Allentown, Pennsylvania its impermissible nonbanking activities of Burton in reliance on the section 4(c)(ii) exemption. Order Approving Acquisition of a Bank Bank, which holds deposits of $775.0 million, 2 is the ninth largest banking organization in Louisiana, Merchants Bancorp, Inc., Allentown, Pennsylvania, a holding 2.06 percent of total deposits in commercial bank holding company within the meaning of the Bank banks in the state. Bank is the largest of five commer- Holding Company Act, has applied for the Board's cial banking organizations in the banking market3 and approval under section 3(a)(3) of the Act (12 U.S.C. holds approximately 45 percent of the total deposits in § 1842(a)(3)) to acquire all of the voting shares of commercial banks in the market. Neither Applicant Easton National Bank & Trust Company, Easton, nor any of its principals is affiliated with any other Pennsylvania ("Bank"). banking organization in the market and it appears that Notice of the application, affording opportunity for consummation of this proposal will not result in any interested persons to submit comments, has been adverse effects upon competition in any relevant area. given in accordance with section 3(b) of the Act. The Accordingly, competitive considerations are consis- time for filing comments has expired, and the Board tent with approval of this application. has considered the application and all comments re- The financial resources and future prospects of ceived in light of the factors set forth in section 3(c) of Applicant and Bank are satisfactory. In addition, the the Act. Board has reviewed the circumstances surrounding Applicant, the eighteenth largest banking organiza- Applicant's acquisition of Burton's stock and, based tion in Pennsylvania, controls one banking subsidiary upon the entire record, including procedures imple- with total deposits of approximately $630.3 million, mented by Applicant and Burton to ensure future representing 0.9 percent of the total deposits in comcompliance with the Act, the Board concludes that mercial banks in the state.1 Bank, with deposits of managerial resources of Applicant and Bank are con- $215 million, is the 47th largest commercial banking sistent with approval. Considerations relating to the organization in Pennsylvania, and controls 0.3 percent convenience and needs of the community to be served of the total deposits in commercial banks in the state. are also consistent with approval of the application. Upon consummation of this transaction, Applicant Accordingly, it is the Board's judgment that the pro- would become the fifteenth largest banking organizaposed acquisition would be in the public interest and tion in the state, and would control 1.2 percent of the that the application should be approved. total deposits in commercial banks in the state. The On the basis of the record, the application is ap- Board concludes that consummation of this transacproved for the reasons summarized above. The trans- tion would have no significant effect on the concentraaction shall not be made before the thirtieth calendar tion of banking resources in Pennsylvania. day following the effective date of this Order or later Both Applicant and Bank compete in the Allentown/ than three months after the effective date of this Bethlehem/Easton banking market.2 Bank is the sixth Order, unless such period is extended for good cause 1. All banking data are as of March 31, 1983. 2. Banking data are as of June 30, 1982. 2. The Allentown/Bethlehem/Easton banking market is approxi- 3. The Calcasieu Parish banking market is defined as Calcasieu mated by Carbon, Lehigh, and Northampton counties in Pennsylva- Parish, Louisiana. nia, and Warren County in New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 Federal Reserve Bulletin • November 1983 largest banking organization in that market, control- the acquisition would not have any significant adverse ling approximately 5.2 percent of the total deposits in effects on competition in any relevant area.6 commercial banks in the market. Applicant is the The financial and managerial resources and future second largest commercial banking organization in the prospects of Applicant, its subsidiaries and Bank are market, controlling approximately 14.8 percent of the regarded as generally satisfactory and their future total deposits in commercial banks in the market. prospects appear favorable. Considerations relating to Upon consummation of this transaction, Applicant banking factors are consistent with approval. Consumwould remain the second largest commercial banking mation of the proposal would result in reduced costs organization in the market, and its share of the total for credit life insurance for Bank's customers. Considdeposits in commercial banks in the market would erations relating to the convenience and needs of the increase to 20 percent.3 community to be served are consistent with approval Although consummation of this proposal would of the application. Accordingly, the Board has detereliminate some existing competition between Appli- mined that consummation of the transaction would be cant and Bank in the Allentown/Bethlehem/Easton consistent with the public interest and that the applicabanking market, certain facts of record mitigate the tion should be approved. competitive effects of the transaction. The Allentown/ On the basis of the record, this application is ap- Bethlehem/Easton banking market is not highly con- proved for the reasons summarized above. The transcentrated and would not become a highly concentrated action shall not be made before the thirtieth calendar market after consummation of this proposal. The share day following the effective date of this Order, or later of deposits held by the four largest commercial bank- than three months after the effective date of this ing organizations in the market is 53.4 percent and Order, unless such period is extended for good cause would increase to 58.6 percent upon consummation of by the Board or by the Federal Reserve Bank of the proposal. The Herfindahl-Hirschman Index Philadelphia, acting pursuant to delegated authority. ("HHI") in the market is 946 and would increase to By order of the Board of Governors, effective 1100 points upon consummation of the proposal.4 In October 13, 1983. addition, numerous commercial banking organizations, including the state's largest, would remain in the Voting for this action: Chairman Volcker and Governors market after consummation of the proposal. Martin, Wallich, Partee, and Rice. Voting against this action: Governor Teeters. Absent and not voting: Governor Gram- Furthermore, the Board has considered the presley. ence of 24 thrift institutions in the market that hold approximately 26 percent of the total deposits in the JAMES MCAFEE, market. Thrift institutions already exert a considerable [SEAL] Associate Secretary of the Board competitive influence in the market as providers of NOW accounts and consumer loans. The Board has previously indicated that thrift institutions have be- Dissenting Statement by Governor Teeters come, or at least have the potential to become major competitors of commercial banks.5 Thrift institutions I would deny the application because I believe that the in this market are in fact engaged in the business of effect of this proposal would be substantially to lessen making commercial loans and providing an alternative competition in the Allentown/Bethlehem/Easton bankfor such services for customers in the Allentown/ ing market. Consummation of this proposal would Bethlehem/Easton banking market. In this case, based result in the elimination of the sixth largest commercial upon the size and activities of thrift institutions in the banking organization in the market, and the resulting market, the Board concludes that thrift institutions organization would control 20 percent of the total exert a significant competitive influence that substan- deposits in commercial banks in the market. I believe tially mitigates the anticompetitive effects of the pro- that the Board's approval of this proposal continues an posal. In light of the above, the Board concludes that undesirable trend of permitting acquisitions that substantially lessen competition in a market without any corresponding public benefit. See Interfirst Corporation, 69 FEDERAL RESERVE BULLETIN 468 (1983); 3. Market data are as of June 30, 1983, and include acquisitions through August 31, 1983. Banc One Corporation, 69 FEDERAL RESERVE BULLE- 4. Under the Department of Justice merger guidelines, a market in TIN 379 (1983) and Hartford National Corporation, 69 which the post-merger HHI is between 1,000 and 1,800 is considered moderately concentrated. In such markets, the Department is more FEDERAL RESERVE BULLETIN 32 (1983). likely than not to challenge a merger that produces an increase in the HHI of 100 points or more. 5. Comerica, Inc., 69 FEDERAL RESERVE BULLETIN 797 (1983); 6. If thrift institutions are included in the calculation of market General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN concentration, the share of deposits held by the four largest organiza- 802 (1983); First Tennessee National Corporation, 69 FEDERAL RE- tions in the market is 39.5 percent, the HHI declines to 588 and the SERVE BULLETIN 298 (1983). combined market shares of Bank and Applicant drop to 14.9 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 867 Accordingly I dissent from the Board's decision to Upon consummation of the proposed transaction, the approve this application. four-firm concentration ratio would increase to 91.7 October 13, 1983 percent and the HHI would increase by 253 points to 2629. In reviewing the effect of this proposal on competi- Monmouth Financial Services, Inc., tion in the Warren County banking market, the Board Minneapolis, Minnesota has considered the fact that Bank, with only $5.8 million in deposits, representing approximately 4.1 Order Approving Acquisition of Bank percent of total deposits in commercial banking institutions in the market, is the smallest depository insti- Monmouth Financial Services, Inc., Minneapolis, tution in the market, and has experienced only mini- Minnesota, a bank holding company within the mean- mal growth since its establishment in 1916. In addition, ing of the Bank Holding Company Act (12 U.S.C. the record indicates that Bank has not been an active § 1841 et seq.), has applied for approval under section competitive factor in the market, as is indicated by its 3(a)(3) of the Act to acquire the First State Bank of relatively low loan-to-deposit ratio and relatively high Little York, Little York, Illinois ("Bank"). concentration of investment in U.S. Government se- Notice of the application, affording opportunity for curities. interested persons to submit comments, has been Moreover, in view of the significant expansion of given in accordance with section 3(b) of the Act. The the commercial lending powers of federal thrift institutime for filing comments has expired, and the applica- tions authorized in the Garn-St Germain Depository tion and all comments received have been considered Institutions Act of 1982, the Board has, in a number of in light of the factors set forth in section 3(c) of the recent cases, considered the presence and extent of Act. competition of thrift institutions in the relevant bank- Applicant's only bank subsidiary is Monmouth ing market as a mitigating factor.3 There are two thrift Trust and Savings Bank, Monmouth, Illinois, which institutions in the Warren County banking market, one holds $44 million in total deposits, representing less of which is, by a substantial margin, the largest than 1 percent of the total deposits in commercial depository institution in the market. Together, these banks in Illinois.1 Bank holds $5.8 million in deposits thrift institutions control $81.3 million in deposits, and is among the smallest banks in the state. After representing approximately 36.2 percent of the total consummation of the proposal, Applicant's share of deposits in thrift institutions and commercial banks in the total deposits in commercial banks in the state Warren County. Accordingly, the Board has considwould remain less than 1 percent. Accordingly, con- ered the presence of thrift institutions in the Warren summation of this proposal would not have an appre- County banking market as a significant factor in asciable effect on the concentration of commercial bank- sessing the competitive effects of this transaction.4 ing resources in Illinois. Consequently, while consummation of the proposal Applicant's bank subsidiary and Bank both operate would eliminate some existing competition in the in the Warren County banking market.2 Monmouth relevant banking market, the Board has determined Trust and Savings Bank is the second largest commer- that, in view of all of the facts of record, consummacial banking organization in this market and operates tion of this proposal would not have a significant two offices, controlling 30.8 percent of total deposits in adverse effect on existing or potential competition in commercial banks in the market. Bank, with only one the Warren County banking market. Thus, competioffice, is the smallest of six commercial banks in the tive effects are consistent with approval. Warren County banking market, with 4.1 percent of The financial and managerial resources of Applithe deposits in commercial banks in the market. The cant, its subsidiary bank, and Bank are regarded as offices of Applicant are both approximately 12 miles generally satisfactory and their prospects appear fafrom Bank. Upon consummation of the proposal, Applicant will become the largest commercial bank in 3. See, e.g., Barnett Banks of Florida, 69 FEDERAL RESERVE the market and will control 34.9 percent of the com- BULLETIN 44 (1983); First Tennessee National Corporaton, 69 FEDmercial bank deposits in the market. The Warren ERAL RESERVE BULLETIN 298 (1983); Midlantic Banks, Inc., 69 County banking market is highly concentrated, with a FEDERAL RESERVE BULLETIN 652 (1983). 4. If the presence of thrift institutions in the market were given full four-firm concentration ratio of 87.6 percent and a weight, the four-firm concentration ratio becomes 81.4 percent and Herfindahl-Hirschman Index ("HHI") equal to 2376. the HHI is reduced to 2055 points. Upon consummation of the transaction, the HHI would increase by 102 points and the four-firm concentration ratio would become 85.5 percent. Applicant would be the third largest depository institution in the market with 19.6 percent 1. All banking data are as of December 31, 1982. of market deposits, and upon consummation of the transaction, would 2. The relevant banking market is defined as Warren County, become the second largest depository institution in the market, with Illinois. 23.2 percent of market deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 Federal Reserve Bulletin • November 1983 vorable. As a result, considerations relating to banking In view of these facts and the fact that Bank is a factors are consistent with approval. Although no new viable competitor in the market, I believe its eliminabanking services would be introduced to the Warren tion as a competitor would have significantly adverse County banking market as a result of the proposed effects on competition in the Warren County banking transaction, the customers of Bank would benefit from market. the addition of new services, including a broad range October 27, 1983 of trust services, expanded credit programs, and financial management services especially developed for farm operations. Thus, considerations relating to con- RepublicBank Corporation, venience and needs of the community to be served are Dallas, Texas consistent with approval and outweigh any adverse competitive effects of the transaction. Based upon the Order Approving Acquisition of a Bank foregoing and all the facts of record, it is the Board's judgment that consummation of the transaction would RepublicBank Corporation, Dallas, Texas, a bank be consistent with the public interest. holding company within the meaning of the Bank On the basis of the record and for the reasons Holding Company Act, has applied for the Board's discussed above, the Board has determined that the approval under section 3(a)(3) of the Act (12 U.S.C. application should be, and hereby is, approved. The § 1842(a)(3)) to acquire the successor by merger to transaction shall not be consummated before the thirti- First National Bank of Midland, Midland, Texas. eth day following the effective date of this Order, or The Comptroller of the Currency has recommended later than three months after the effective date of this immediate action by the Board to prevent the probable Order, unless such period is extended for good cause failure of Bank. Public notice of this application before by the Board or by the Federal Reserve Bank of the Board is not required by the Act, and in view of the Chicago, pursuant to delegated authority. emergency situation, the Board has not followed its By order of the Board of Governors, effective normal practice of affording interested parties the October 27, 1983. opportunity to submit comments and views. In connection with this application, the Director of Voting for this action: Vice Chairman Martin and Gover- the Division of Banking Supervision and Regulation nors Wallich, Partee, Rice, and Gramley. Voting against this has taken into consideration the competitive effects of action: Governor Teeters. Absent and not voting: Chairman the proposed transaction, the financial and managerial Volcker. resources and future prospects of the banks con- JAMES MCAFEE, cerned, and the convenience and needs of the commu- [SEAL] Associate Secretary of the Board nities to be served. On the basis of the information before the Board, the Director finds that an emergency situation exists so as to require that the Director act Dissenting Statement by Governor Teeters immediately pursuant to the provisions of section 3(b) of the Act (12 U.S.C. § 1842(b)) in order to safeguard I would deny the application of Monmouth Financial depositors of Bank. Having considered the record of Services, Inc. to acquire First State Bank of Little this application in light of the factors contained in the York, Little York, Illinois, because I believe that Act, the Director has determined that consummation consummation of the proposal would tend to substan- of the transaction would be in the public interest and tially lessen competition in the Warren County that the application should be approved on a basis that market. would not preclude immediate consummation of the Applicant is the second largest commercial banking proposal. On the basis of these considerations, the institution in the market, and would increase its mar- application is approved. ket share from 30.8 percent to 34.9 percent of total The transaction may be consummated immediately deposits in commercial banks in the market. The but in no event later than three months after the Warren County market is highly concentrated, and, effective date of this Order unless such period is upon consummation of the proposal, the four-firm extended for good cause by the Board or by the concentration ratio would increase from 87.6 percent Federal Reserve Bank of Dallas acting pursuant to to 91.7 percent and the Herfindahl-Hirschman Index delegated authority. would increase by 253 points, from 2376 to 2629. Even By order of the Director, acting pursuant to delegatif weight were given to the thrift institutions in the ed authority for the Board of Governors, effective market, the market remains highly concentrated and October 14, 1983. the Herfindahl-Hirschman Index would increase by WILLIAM W. WILES, over 100 points. [SEAL] Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 869 Trust Company of Georgia, in commercial banks in the market, ranks as the eighth Atlanta, Georgia largest banking organization. Upon consummation of the proposal, Applicant's share of market deposits Order Approving Merger of Bank Holding would increase to 21.5 percent and its rank would Companies and Banks remain unchanged. The Atlanta market is regarded as concentrated, Trust Company of Georgia, Atlanta, Georgia, a bank with the four largest banking organizations controlling holding company within the meaning of the Bank 79 percent of total deposits in commercial banks in the Holding Company Act of 1956 (12 U.S.C. § 1841 market and a Herfindahl-Hirschman Index ("HHI") et seq.) ("BHC Act"), has applied for the Board's of 1769. As a result of the proposed mergers, the HHI approval under section 3(a)(5) of the Act (12 U.S.C. would increase by 64 points to 1833. The competitive § 1842(a)(5)) to merge with Peachtree Bancshares, effects of the proposal are mitigated, however, by the Chamblee, Georgia ("Peachtree"), and thereby indi- existence of numerous other bank competitors and rectly to acquire Peachtree's two subsidiary banks, thrift institutions.3 Operating in the Atlanta banking Peachtree Bank and Trust Company, Chamblee, Geor- market are 20 savings and loan associations, with gia ("Peachtree Bank"), and Bank of Woodstock, deposits totalling $4.3 billion. The fourth, fifth, and Woodstock, Georgia ("Woodstock"). Applicant also sixth largest depository organizations in the market has applied for the Board's approval under the Bank are S&Ls. If these institutions were included in the Merger Act (12 U.S.C. § 1828(c)), to merge Peachtree market data, the percentage of market deposits held by Bank and Woodstock into Applicant's lead bank, Applicant would decrease to 13.3 percent and the Trust Company Bank, Atlanta, Georgia ("Trust Com- percentage held by Peachtree would decrease to 1.1 percent. pany"). Notice of the applications, affording opportunity for Accordingly, based on the marginal increase in interested persons to submit comments, has been concentration that would result from the proposal and given in accordance with section 3(b) of the BHC Act the numerous other competitors in the market, the and the Bank Merger Act, and reports on competitive Board has determined that consummation of the profactors have been requested from the Attorney Gener- posal would not result in the elimination of any signifial, the Comptroller of the Currency, and the Federal cant existing competition nor would it significantly Deposit Insurance Corporation. The time for filing increase concentration in the Atlanta banking market. comments has expired, and the Board has considered The Board also has examined the effect of the the applications and all comments received in light of proposal on probable future competition in the Cherothe factors set forth in section 3(c) of the BHC Act and kee County banking market,4 where Applicant would the Bank Merger Act. be gaining initial entry, in light of the Board's guide- Applicant, the second largest commercial banking lines on probable future competition.5 Woodstock, organization in Georgia, controls 18 banks with aggre- with deposits of $12.3 million, is the smallest of four gate deposits of $2.7 billion, representing 13.2 percent banking organizations competing for $129 million in of the total deposits in commercial banks in the state.1 deposits in the Cherokee market. None of Applicant's Peachtree, the 11th largest commercial banking orga- banking subsidiaries competes in the market. The nization in Georgia, controls two banks with aggregate Cherokee County banking market is not regarded as deposits of $153 million, representing 0.75 percent of attractive for de novo entry under the Board's guidetotal deposits in commercial banks in the state. Con- lines, which generally require that a market have at summation of the proposed transaction would increase least $250 million in deposits to be regarded as attrac- Applicant's share of the total deposits in commercial tive for de novo entry. Accordingly, the proposal does banks in the state to 13.95 percent and its rank would not satisfy the criteria required to trigger an intensive remain unchanged. The Board concludes that approval review under the Board's guidelines, and the Board of the proposal would have little effect on statewide concentration or banking structure. Trust Company and Peachtree Bank operate in the 3. The Board has accorded considerable weight to the competitive influence of thrifts in several recent cases, including Merchants Atlanta banking market.2 Trust Company, with 19.9 Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 865 (1983); Comerpercent of deposits in commercial banks in the market, ica, Inc., 69 FEDERAL RESERVE BULLETIN 797 (1983); General is the third largest of 27 banking organizations in that Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); Texas East BanCorp, Inc., 69 FEDERAL RESERVE BULLETIN 636 market. Peachtree Bank, with 1.6 percent of deposits (1983); Fidelcor, Inc., 69 FEDERAL RESERVE BULLETIN 444 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLE- TIN 298 (1983); and Pennbancorp, 69 FEDERAL RESERVE BULLETIN 1. Deposit data are as of June 30, 1982. 548 (1983). 2. The Atlanta banking market comprises the following counties in 4. The Cherokee County banking market is defined as Cherokee Georgia: Fulton, DeKalb, Cobb, Gwinnett, Rockdale, Clayton, Hen- County, Georgia. ry, and Douglas. 5. 47 Federal Register 9017 (March 3, 1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 Federal Reserve Bulletin • November 1983 concludes that the proposal would not have substantial Accordingly, I dissent from the Board's decision to adverse effects on probable future competition in any approve this application. relevant banking market. The financial and managerial resources and pros- October 20, 1983 pects of Applicant, Peachtree, and their subsidiary banks are generally satisfactory. Accordingly, consid- Dissenting Statement of Governor Rice erations relating to banking factors are consistent with approval. Although there is no evidence in the record I would deny this application based on the substantial indicating that the banking needs of the communities lessening of competition in the Atlanta banking market to be served are not being met, consummation of the that would result from the proposal. Consummation of merger will result in some additional services for the merger will eliminate the eighth largest competitor Peachtree's customers. Accordingly, considerations in the market. The market is already highly concenrelating to the convenience and needs of the communi- trated, with a four-firm concentration ratio of 79, ties to be served also are consistent with approval. which would increase to 80.7 percent as a result of the Based on the foregoing and other facts of record, the merger. Moreover, the merger falls within the catego- Board has determined that consummation of the pro- ry of transactions that may be challenged under the posed transaction would be in the public interest and Justice Department's merger guidelines. Under those that the applications should be approved. guidelines, a merger that increases the HHI by 50 On the basis of the record, the applications are points or more and results in a total HHI of 1800 or approved for the reasons summarized above. The above is subject to challenge. The merger in this case would increase the HHI by 64 points to 1833. acquisition of shares shall not be made before the thirtieth calendar day following the effective date of In previous cases that the Board has approved this Order or later than three months after the effective involving a post-merger market share in the range of 20 date of this Order, unless such period is extended by percent or more, the market has not been highly the Board or by the Federal Reserve Bank of Atlanta, concentrated or there have been other mitigating facacting pursuant to delegated authority. tors or public benefits, such as those associated with By order of the Board of Governors, effective the takeover of a weak or failing institution by a strong October 20, 1983. one. First Tennessee National Corporation, 69 FED- ERAL RESERVE BULLETIN 298 (1983); Comerica, Inc., Voting for this action: Chairman Volcker and Governors 69 FEDERAL RESERVE BULLETIN 797 (1983). No such Martin, Wallich, and Partee. Voting against this action: mitigating factors or public benefits are present in this Governors Teeters and Rice. Absent and not voting: Gover- case. Peachtree Bank is a strong competitor in the nor Gramley. Atlanta market. While the case for approval is strengthened by the presence of thrift institutions in JAMES MCAFEE, [SEAL] Associate Secretary of the Board the market, I am not convinced, on the basis of the record in this particular case, that this factor outweighs the substantially adverse effects of the propos- Dissenting Statement of Governor Teeters al. While there are a number of large thrift institutions in the market, the record does not indicate that they are active competitors of commercial banks. I would deny the application because I believe the effect of this proposal would be substantially to lessen Accordingly, I would deny the application. competition in the Atlanta banking market. Consummation of this proposal would result in the elimination October 20, 1983 of the eighth largest commercial banking organization in the market, and the resulting organization would control 21.5 percent of the total deposits in commer- Trustees of Dartmouth College, cial banks in the market. I believe that the Board's Hanover, New Hampshire approval of this proposal continues an undesirable trend of permitting acquisitions that substantially less- Order Approving Acquisition of a Bank Holding en competition in a market without any corresponding Company public benefit. See Merchants Bancorp, Inc., 69 FED- ERAL RESERVE BULLETIN 865 (1983); Interfirst Corpo- Trustees of Dartmouth College, Hanover, New Hampration, 69 FEDERAL RESERVE BULLETIN 468 (1983); shire ("College"), a bank holding company within the Banc One Corporation, 69 FEDERAL RESERVE BULLE- meaning of the Bank Holding Company Act of 1956, as TIN 379 (1983); and Hartford National Corporation, 69 amended (12 U.S.C. § 1841 et seq.), has applied for FEDERAL RESERVE BULLETIN 32 (1983). approval under section 3(a)(3) of the Act (12 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 871 § 1842(a)(3)) to acquire 26.95 percent of the voting On the basis of the record, the application is apshares of Dartmouth National Corporation ("DNC") proved for the reasons summarized above. The acquiand thereby indirectly control Dartmouth National sition of shares shall not be made before the thirtieth Bank of Hanover, Hanover, New Hampshire calendar day following the effective date of this Order ("Bank"). or later than three months after the effective date of Notice of the application, affording opportunity for this Order unless such period is extended by the Board interested persons to submit comments, has been or by the Federal Reserve Bank of Boston, acting given in accordance with section 3(b) of the Act. The pursuant to delegated authority. time for filing comments has expired, and the applica- By order of the Board of Governors, effective tion and all comments received have been considered October 12, 1983. in light of the factors set forth in section 3(c) of the Act. Voting for this action: Chairman Volcker and Governors College currently owns 26.95 percent of the voting Martin, Wallich, Partee, Teeters, and Rice. Absent and not voting: Governor Gramley. shares of Bank. College proposes to exchange its voting shares of Bank for voting shares of DNC. Upon JAMES MCAFEE, consummation of the proposal, College would retain [SEAL] Associate Secretary of the Board its interest in Bank, the eighth largest bank in New Hampshire, which controls 2.4 percent of the total deposits in commercial banks in the state.1 Orders Under Section 4 of Bank Holding College holds its shares of Bank pursuant to an Company Act exemption under section 4(d) of the Act (12 U.S.C. § 1843(d)).2 Since the proposed transaction represents Bankers Trust New York Corporation, an internal reorganization that will not result in any New York, New York other changes affecting the College's ownership of Bank, the proposal would not affect the College's Order Approving Application to Engage in Certain exempt status under the Act. Futures Commission Merchant Activities Bank is the largest commercial banking organization in Upper Connecticut Valley banking market3 and Bankers Trust New York Corporation, New York, holds approximately 29.0 percent of total deposits in New York, a bank holding company within the meancommercial banks in the market.4 The College is not ing of the Bank Holding Company Act of 1956, as affiliated with any other banking organization in the amended (12 U.S.C. § 1841 et seq.) (the "Act"), has market, and it appears that consummation of the applied for the Board's approval, under section 4(c)(8) proposal would not result in any adverse effects upon of the Act (12 U.S.C. § 1843(c)(8)) and section competition or increase the concentration of banking 225.4(b)(2) of the Board's Regulation Y (12 C.F.R. resources in any relevant area. Accordingly, the Board § 225.4(b)(2)), to engage through its subsidiary, B. T. concludes that competitive considerations are consis- Futures Corp., New York, New York ("BT Futent with approval of the application. tures"), in acting as a futures commission merchant (a The financial and managerial resources and future "FCM") for nonaffiliated persons, in the execution prospects of Applicant and Bank are satisfactory. and clearance of options in certain futures contracts on Accordingly, considerations relating to banking fac- major commodity exchanges. Such options would tors are consistent with approval. Although no imme- cover futures contracts in bullion traded on the Comdiate changes in Bank's services are planned, consid- modity Exchange, Inc., New York, New York, and erations relating to the convenience and needs of the futures contracts in U.S. Government securities tradcommunity to be served also are consistent with ed on the Board of Trade of the City of Chicago, approval. Thus, based on the foregoing and other facts Chicago, Illinois. of record, the Board has determined that consumma- Notice of the application, affording interested pertion of the proposed transaction would be in the public sons an opportunity to submit comments on the relainterest and that the application should be approved. tion of the proposed activity to banking and on the balance of public interest factors regarding the application, has been duly published (48 Federal Register 1. Banking data are as of March 31, 1983. 37036 (August 16, 1983)). The time for filing comments 2. Board Order of February 12, 1975. has expired, and the Board has considered the applica- 3. The Upper Connecticut Valley banking market is approximated tion and all comments received in light of the public by the towns of Cannan, Dorchester, Enfield, Hanover, Lebanon, Lyme, Oxford, and Plainfield, all in New Hampshire, and the towns of interest factors set forth in section 4(c)(8) of the Act. Hartford, Hartland, Norwick, Thetford, and Woodstock, all in Ver- Applicant is a bank holding company by virtue of its mont. 4. Market data are as of June 30, 1982. control of Bankers Trust Company, New York, New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 Federal Reserve Bulletin • November 1983 York ("Bankers Trust"). Bankers Trust holds total tracts, the execution of options with regard to futures deposits of $25.3 billion,1 and is the sixth largest contracts involves various types of financial risks and commercial bank in New York State. Applicant, potential conflicts of interest, and is susceptible to through certain of its subsidiaries, engages in various anticompetitive and manipulative practices. In appermissible nonbanking activities. proving proposals to act as a FCM with regard to In order to approve an application submitted pursu- futures contracts and options on futures contracts, the ant to section 4(c)(8) of the Act, the Board is first Board has relied in the past on action taken by required to determine that the proposed activity is Congress to address these types of possible adverse closely related to banking or managing or controlling effects through the passage of the Commodity Exbanks. On several prior occasions, the Board has change Act4 and the creation of the Commodity determined that FCM activities with respect to futures Futures Trading Commission ("CFTC"). The Board contracts in bullion and U.S. Government securities also has relied on the regulations adopted by the CFTC were closely related to banking. 2 Moreover, the to implement the provisions of the Commodity Ex- Board recently determined that conducting FCM ac- change Act.5 The CFTC's pilot program regarding tivities for options on futures contracts in bullion and options on futures contracts imposes many of the same U.S. Government securities is functionally and opera- safeguards that apply to trading in futures contracts, tionally similar to conducting FCM activities for fu- and adds additional limitations such as those requiring tures contracts for the same commodity and is, there- audits, review of promotional materials, and retention fore, closely related to banking or managing or of customer complaints.6 The Board has considered controlling banks for purposes of section 4 of the the impact of this statutory and regulatory framework Act. 3 Thus, the Board finds that the activities pro- in evaluating the likelihood that significant adverse posed by Applicant are closely related to banking. effects regarding conflicts of interests, unsound bank- In order to approve this application, the Board also ing practices, decreased or unfair competition, or is required to determine that the performance of the undue concentration of resources would develop in proposed activities by BT Futures, "can reasonably this case. be expected to produce benefits to the public, such as In addition, the Board has placed particular reliance greater convenience, increased competition, or gains on the following aspects of Applicant's proposal, each in efficiency, that outweigh possible adverse effects, of which the Board has previously relied on with such as undue concentration of resources, decreased regard to Applicant's original application to engage in or unfair competition, conflicts of interests, or un- FCM activities: sound banking practices." (12 U.S.C. § 1843(c)(8)). 1. BT Futures will not trade for its own account. Consummation of the proposal would provide added 2. The instruments and precious metals upon which convenience to those clients of BT Futures who trade the proposed futures contracts are based are essenin the cash, forward, futures, and options markets for tially financial in character and are of a type that a the commodities involved in this application. The bank may execute for its own account. Board expects that the de novo entry of BT Futures 3. BT Futures has capitalization that is in substantial into the market for options services would increase the excess of that required by CFTC regulations, and level of competition among FCMs already operating in will maintain fully adequate capitalization. this area, and would allow BT Futures to compete on a 4. BT Futures and Bankers Trust have entered into a more equal basis with its nonbank competitors. Con- formal service agreement that specifies the services summation of the proposal is also likely to provide that Bankers Trust will supply to BT Futures on an Applicant with some gains in efficiency, through the explicit fee basis. These services include the assessreduction of average fixed costs and the increase of ment of customer credit risk and continuous monieconomies of scale. Accordingly, the Board concludes toring of customer positions and the status of custhat the performance of the proposed activities by BT tomer margin accounts. Futures can reasonably be expected to produce bene- 5. Through its proposed service agreement with fits to the public. Bankers Trust, BT Futures will be able to assess The Board has considered several issues with re- customer credit risks, and will take such assessspect to possible adverse effects. The Board recog- ments into consideration in establishing appropriate nizes that, like the activity of executing futures con- position limits for each customer, both with respect to each type of option and with respect to the 1. Banking data are as of December 31, 1982. 2. Bankers Trust New York Corporation, 68 FEDERAL RESERVE BULLETIN 651 (1982); Citicorp, 68 FEDERAL RESERVE BULLETIN His 4. 7 U.S.C. §§ 1-24. (1982). 5. J. P. Morgan & Co., Inc., 69 FEDERAL RESERVE BULLETIN 733 3. J. P. Morgan & Co., Inc., 69 FEDERAL RESERVE BULLETIN 733 (1983). (1983). 6. 17 C.F.R. § 33.4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 873 customer's aggregate position for all options and Order, unless such period is extended for good cause contracts. by the Board or by the Federal Reserve Bank of New 6. With respect to each futures exchange involved in York. this application that requires a parent of a clearing By order of the Board of Governors, effective member to also become a clearing member, Appli- October 24, 1983. cant has obtained a waiver of the requirement. 7. BT Futures has committed that it will, in addition Voting for this action: Chairman Volcker and Governors to time-stamping orders of all customers to the Wallich, Teeters, Rice, and Gramley. Absent and not voting: Governors Martin and Partee. nearest minute, execute all orders, to the extent consistent with customers' specifications, in strictly JAMES MCAFEE, chronological sequence, and with reasonable [SEAL] Associate Secretary of the Board promptness with due regard to market conditions. 8. Applicant and its subsidiaries have demonstrated expertise and established capability in the cash, Chemical New York Corporation, forward, and futures markets for the contracts in- New York, New York volved. 9. Applicant will require BT Futures to advise each Order Approving Application to Deal in Money of its customers in writing that doing business with Market Instruments BT Futures will not in any way affect any provision of credit to that customer by Bankers Trust or any Chemical New York Corporation, New York, New other subsidiary of Applicant. York, a bank holding company within the meaning of 10. Applicant is adequately capitalized to engage in the Bank Holding Company Act ("Act"), has applied additional nonbanking activities. for the Board's approval under section 4(c)(8) of the 11. BT Futures will not extend credit to customers Act, 12 U.S.C. § 1843(c)(8), and section 225.4(b)(1) of for the purpose of meeting initial or maintenance the Board's Regulation Y (12 C.F.R. § 225.4(b)(1)) to margin required of customers, subject to the limited engage directly and for its own account in purchases, exception of posting margin on behalf of customers sales and in repurchase transactions with respect to in advance of prompt reimbursement. certain money market instruments, including bankers acceptances, commercial paper and certificates of Based upon the foregoing and all the facts of record, deposit. the Board has determined that in the circumstances of Notice of the application, affording opportunity for this case, the provision by BT Futures of the proposed interested persons to submit comments and views, has FCM services to nonaffiliated persons would not result been given in accordance with section 4 of the Act in decreased or unfair competition, conflicts of inter- (48 Federal Register 34336, July 28, 1983). The time ests, unsound banking practices, or undue concentra- for filing comments and views has expired, and the tion of resources in either commercial banking or the Board has considered the application and all commarket for FCM services regarding options. ments received in light of the public interest factors set Moreover, for the reasons discussed above and forth in section 4(c)(8) of the Act. based on the entire record, the Board has determined Applicant is a bank holding company by virtue of its that the public benefits associated with consummation control of Chemical Bank, New York, New York, and of this proposal can reasonably be expected to out- Chemical Bank (Delaware), Wilmington, Delaware. weigh possible adverse effects, and that the balance of Applicant holds total consolidated assets of $49.2 the public interest factors, which the Board is required billion, and it is the third largest commercial banking to consider under section 4(c)(8) of the Act, is favor- organization in New York.1 able. Applicant seeks approval to engage directly and for Accordingly, the application is hereby approved. its own account in the activities of purchasing, selling, This determination is subject to the conditions set engaging in repurchase transactions and generally forth in section 225.4(c) of Regulation Y and the dealing in money market instruments such as bankers Board's authority to require such modification or acceptances, commercial paper and certificates of termination of the activities of a holding company or deposit in which State member banks may from time any of its subsidiaries as the Board finds necessary to to time be authorized to deal. These activities would assure compliance with the provisions and purposes of be performed from offices of Applicant located in New the Act and the Board's regulations and orders issued York, New York, and serving the entire United States. thereunder, or to prevent evasion thereof. This activity is not included in the list of permissible The proposed activities shall not commence later than three months after the effective date of this 1. All banking data are as of June 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 Federal Reserve Bulletin • November 1983 activities for bank holding companies contained in of an activity within the same corporate structure, section 224.5(a) of Regulation Y. approval of the application would have no adverse In determining whether an activity is permissible competitive effects. In addition, this proposal will under section 4(c)(8) of the Act, the Board must first result in an expansion of Applicant's presently limited determine that the activity is "closely related to bank- participation in these activities, which can be expected ing or managing or controlling banks." As the courts to increase competition. have made clear, a proposed activity that does not Bankers acceptances, commercial paper and certifidiffer significantly from the functions traditionally or cates of deposits are subject to the protections in generally provided by banks is closely related to section 23A of the Federal Reserve Act against a banking within the meaning of section 4(c)(8). 2 In holding company transferring to affiliated banks at less 1974, the Board published for comment notice of a than current market value money market instruments proposed rulemaking to add to the list of permissible that cannot otherwise be distributed. Section 23A thus bank holding company activities underwriting and protects against one of the major potential abuses that dealing in government securities and other obligations has concerned the Board in permitting bank holding that a State member bank may be authorized to companies to engage in the related field of underwritunderwrite or to deal in.3 In orders issued in 1976 and ing certain government securities.7 1978, the Board determined that such activity is close- Based upon a consideration of all the relevant facts, ly related to banking.4 The Board's finding that the the Board concludes that the balance of the public activity is closely related to banking was premised on interest factors that the Board is required to consider the facts that national and State member banks are under section 4(c)(8) is favorable. Accordingly, the authorized by statute to engage in the activity application is hereby approved. This determination is (12 U.S.C. § 24, Paragraph Seventh, and § 335), and subject to the conditions set forth in section 225.4(c) of that many banks in fact engage in the activity. Regulation Y and to the Board's authority to require The Board has reiterated the view that dealing in such modification or termination of the activities of a obligations as authorized by statute for State member bank holding company or any of its subsidiaries as the banks, including money market instruments, is closely Board finds necessary to assure compliance with the related to banking.5 Banks are permitted to deal in provisions and purposes of the Act and the Board's these money market instruments as an incident to the regulations and orders issued thereunder, or to preactivities expressly authorized by statute, and a num- vent evasion thereof. ber of banks currently serve as dealers in bankers' The transaction shall be made not later than three acceptances and certificates of deposit.6 The Board months after the effective date of this Order, unless regards such activities as closely related to banking such period is extended for good cause by the Board or because banks engage in such functions. by the Federal Reserve Bank of New York pursuant to Before permitting a bank holding company to en- delegated authority. gage in a permissible nonbanking activity, the Board By order of the Board of Governors, effective must examine any public benefits that may reasonably October 18, 1983. be expected to derive from bank holding company performance of the activity and weigh them against Voting for this action: Vice Chairman Martin and Goverany possible adverse effects to determine whether the nors Wallich, Partee, and Rice. Absent and not voting: Chairman Volcker and Governors Teeters, and Gramley. activity is a proper incident to banking or managing or controlling banks. This application represents a corporate reorganization wherein activities currently per- JAMES MCAFEE, formed to a limited extent by Applicant's subsidiary [SEAL] Associate Secretary of the Board bank, Chemical Bank, will be conducted by Applicant directly. Since the proposal would result in a transfer First NH Banks, Inc., Manchester, New Hampshire 2. Board of Governors v. Investment Company Institute, 101 S.Ct. 973, 981 (1981); National Courier Association v. Board of Governors, Order Approving Acquisition of a Bank 516 F.2d 1229, 1237 (D.C. Cir. 1975). 3. 39 Federal Register 13007 (1974). 4. 62 FEDERAL RESERVE BULLETIN 928 (1976); 43 Federal Register First NH Banks, Inc., Manchester, New Hampshire, a 5382 (1978). bank holding company within the meaning of the Bank 5. Citicorp, 68 FEDERAL RESERVE BULLETIN 249 (1982). 6. See Comptroller's Handbook for National Bank Examiners § 204; M. Stigum, The Money Market: Myth, Reality and Practice, pp. 543, 617 and 638 (1983); C. J. McCurdy, "The Dealer Market for United States Government Securities", 2 Federal Reserve Bank of New York Quarterly Review, 35, 39 (1977-78). 7. Citicorp, 68 FEDERAL RESERVE BULLETIN 249 (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 875 Holding Company Act ("Act"), has applied for the institutions established by Congress, including regula- Board's approval under section 4 (12 U.S.C. tion of S&L holding companies.2 § 1843(c)(8)) and section 3(a)(3) of the Act (12 U.S.C. The Garn-St Germain Act provided the Board with § 1842(a)(3)) to acquire all of the shares of the succes- express statutory guidance as to the status of thrift sor by merger to Plymouth Guaranty Savings Bank, institutions under the BHC Act by specifically amend- Plymouth, New Hampshire ("Bank"), a state char- ing the Act to exclude S&Ls and savings banks the tered guaranty savings bank that accepts demand deposits of which are insured by the FSLIC from the deposits and makes commercial loans and the ac- definition of "bank" and by amending the definition of counts of which are insured by the FDIC. "thrift institution" to include federally chartered, but Notice of the application, affording opportunity for not state chartered, stock savings banks. In view of interested persons to submit comments and views, has the express exemption in the BHC Act for federally been duly published. (48 Federal Register 29,956). chartered or FSLIC insured thrift institutions, and the The time for filing comments and views has expired lack of a similar exemption for non-FSLIC insured and the Board has considered the application and all stock savings banks, the Board concludes that such comments received. non-FSLIC insured institutions are to be regarded as This application raises the issue of whether Bank is "banks" if they accept demand deposits and engage in a "bank," as that term is defined under the Act. commercial lending.3 In this connection, the Board Section 2(c) of the Act defines "bank" to mean any notes that these institutions would not be "insured institution that both accepts demand deposits and institutions" for purposes of the Savings and Loan engages in the business of making commercial loans. Holding Company Act. (12 U.S.C. § 1841(c)). Bank satisfies both aspects of Prior to enactment of the Garn-St Germain Act, the this definition. Board approved several bank holding company acqui- Under recently enacted legislation in New Hamp- sitions of New Hampshire guaranty savings banks shire, guaranty savings banks are provided the same under section 4 of the Act. See BankEast Corporation, powers as commercial banks in the state, and Bank in 68 FEDERAL RESERVE BULLETIN 116 (1982), and cases fact exercises those powers by accepting demand cited therein. In those cases, the Board determined deposits and NOW accounts and making commercial that guaranty savings banks were not "banks" for loans.1 Bank's loan portfolio includes a substantial purposes of the BHC Act based on commitments by number of commercial real estate loans as well as the institutions not to engage in demand deposit or loans to businesses. Indeed, Bank recently acquired commercial lending activities or to engage in such the assets of Granite State Trust Company, Lincoln, activities only to the extent then permissible for feder- New Hampshire, a state chartered commercial bank, al thrifts. The Board also relied on the facts that such including its commercial loan portfolio. institutions were unique to New Hampshire, only six Section 2(c) was amended by the Garn-St Germain such institutions operated in New Hampshire, and Depository Institutions Deregulation Act to expressly historically three of the six had been affiliated with exclude institutions the accounts of which are insured commercial banks. by the Federal Savings and Loan Insurance Corpora- Since Bank meets the literal terms of the "bank" tion ("FSLIC") or that are chartered by the Federal definition and is not included within the statutory Home Loan Bank Board. This exclusion does not exclusion for federally chartered or FSLIC insured apply to Bank, however, since it is not federally thrifts, the Board has determined that it is a "bank" chartered and its deposits are not insured by the for purposes of the BHC Act. The application thus has FSLIC. Similarly Bank is not a "thrift institution" been considered in light of the requirements of section under the BHC Act, 12 U.S.C. § 1841(i). 3 of the Act. Prior to enactment of the Garn-St Germain Act, the status of thrift institutions under the BHC Act was uncertain. Notwithstanding their recently acquired deposit taking and commercial lending powers, how- 2. First Bancorporation (Beehive Thrift & Loan), 68 FEDERAL ever, the Board interpreted the Act as excluding thrift RESERVE BULLETIN 253 (1982); Interstate Financial Corp. (Scioto institutions from the "bank" definition based on the S&L), 68 FEDERAL RESERVE BULLETIN 316 (1982); Citicorp (Fidelity S&L), 68 FEDERAL RESERVE BULLETIN 656 (1982). traditional role of thrifts as home lending institutions 3. The Board has previously interpreted the applicability of the and the separate federal regulatory structure for such Garn-St Germain thrift exemption with respect to non-FSLIC insured or federally chartered thrifts in connection with a proposal by Wilshire Oil Company of Texas to avoid bank holding company regulation by converting its subsidiary bank into a New Jersey stock savings bank. The Board determined that the bank was not covered by the exemption for FSLIC insured thrifts contained in the Garn-St Germain Act and would continue to be a "bank" since it both accepted demand 1. New Hampshire law also authorizes state savings banks to deposits and engaged in commercial lending. (Letter dated Decemexercise all of the powers of federally chartered savings banks. ber 3, 1982.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 Federal Reserve Bulletin • November 1983 Applicant, the second largest commercial banking that would not be permissible for a bank holding organization in New Hampshire, controls eight bank company under the Act without the Board's prior subsidiaries with total deposits of $516.3 million, rep- approval. Bank does not presently engage in any such resenting 7.1 percent of the total deposits in commer- activities. cial banks in the state.4 Bank, with deposits of approx- The financial and managerial resources and future imately $67.9 million, is the 28th largest banking prospects of Applicant, its subsidiaries, and Bank are organization in New Hampshire, and controls 0.9 regarded as generally satisfactory. Accordingly, conpercent of the total deposits in commercial banks in siderations relating to banking factors are consistent the state. Upon consummation of this transaction, with approval. Applicant has stated that it will assist Applicant's share of total deposits in the state would Bank in offering trust services, establishing automated increase only slightly, and the Board has determined teller facilities, and expanding Bank's access to the that the transaction would have no significant effect on secondary mortgage market. Accordingly, considerstatewide concentration of banking resources. ations relating to the convenience and needs of the Bank is the largest depository institution in the community to be served are consistent with approval. Plymouth banking market5 and controls approximate- Based on the foregoing and other facts of record, the ly 66.4 percent of deposits in all depository institutions Board has determined that consummation of the proin the market. Applicant does not operate in this posed transaction would be in the public interest and banking market. Accordingly, consummation of the that the application should be approved. The applicaproposal would not have any effect on existing compe- tion is approved for the reasons summarized above. tition in the Plymouth market. The transaction shall not be consummated before the Bank controls 21 percent of the outstanding voting thirtieth calendar day following the effective date of shares of The Pemigewasset National Bank of Ply- this Order or later than three months after the effective mouth, Plymouth, New Hampshire ("PNB"), a com- date of this Order, unless such period is extended for mercial bank that operates in the same market as good cause by the Board or by the Federal Reserve Bank. Applicant has committed to divest these shares Bank of Boston acting pursuant to delegated authority. in connection with this proposal. Accordingly, the By order of the Board of Governors, effective Board has determined that the proposal could have a October 13, 1983. positive effect on competition in the Plymouth banking market resulting from the disassociation of Bank and Voting for this action: Chairman Volcker and Governors PNB. Wallich, Partee, Teeters, and Rice. Voting against this action: Governor Martin. Absent and not voting: Governor With respect to probable future competition, the Gramley. Board has examined the proposal in light of the Board's guidelines on market extension mergers.6 The JAMES MCAFEE, Plymouth banking market is not considered to be [SEAL] Associate Secretary of the Board attractive for de novo entry under the guidelines and there appear to be numerous other potential entrants to the market. Accordingly, the Board had determined Orders Under Sections 3 and 4 of Bank that the proposal raises no significant issues relating to Holding Company Act potential competition.7 Under New Hampshire law, Bank is authorized to New Mexico Banquest Investors Corporation, engage in real estate development and investment Santa Fe, New Mexico activities broader than those that are permitted for a bank holding company under the Act. Applicant has Banco de Vizcaya, S.A., committed that Bank will not engage in any activities Bilbao, Spain Order Approving Formation of a Multi-Bank Holding Company and Acquisition of an Interest in such Multi-Bank Holding Company 4. All banking data are as of December 31, 1982. 5. The Plymouth banking market is comprised of the following cities and towns in Grafton County, New Hampshire: Ashland, Bridgewater, Campton, Dorchester, Ellsworth, Groton, Hebron, Hol- New Mexico Banquest Investors Corporation, Santa derness, Lincoln, Plymouth, Rumney, Thornton, Warren, Waterville, Fe, New Mexico ("Investors"), has applied for the Wentworth, and Woodstock. Board's approval under section 3(a)(1) of the Bank 6. 47 Federal Register 9017 (March 3, 1982). 7. The Board has determined that it is unnecessary to impose Holding Company Act (12 U.S.C. § 1842(a)(1)) conditions to limit the possibility of evasion of Regulation Q in view of ("Act") to become a bank holding company by acquirthe phase-out of the Regulation Q interest rate differential on or before ing approximately 54.8 percent of the voting shares of January 1, 1984, as mandated by the Garn-St Germain Depository Institutions' Act of 1982. New Mexico Banquest Corporation, Santa Fe, New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 877 Mexico ("Banquest")1 and, thereby indirectly acquir- Investors, a nonoperating New Mexico corporation, ing an interest in Banquest's three subsidiary banks: was organized for the purpose of becoming a bank The First National Bank of Santa Fe, Santa Fe, New holding company by acquiring 54.8 percent of Ban- Mexico ("Santa Fe Bank"); First State Bank of Taos, quest. Upon its acquisition of Banquest, Investors Taos, New Mexico ("Taos Bank"); and Fidelity Na- would control the sixth largest banking organization in tional Bank, Albuquerque, New Mexico ("Albuquer- New Mexico, with approximately $285.5 million in que Bank"), (collectively, "Banks"). deposits, representing 3.6 percent of the total deposits In a related application, Banco de Vizcaya, S.A. in commercial banks in the state.6 Bilbao, Spain ("Vizcaya"), has applied for the None of Banquest's subsidiary banks competes in Board's approval under section 3(a)(3) of the Act the same banking market. Santa Fe Bank is the largest (12 U.S.C. § 1842(a)(3)), to acquire 48 percent2 of the of five commercial banking organizations in the Santa voting shares of Investors.3 Fe banking market and holds approximately 35.5 per- Both Investors and Vizcaya have also applied for cent of total deposits in commercial banks in the the Board's approval under section 4(c)(8) of the Act market.7 Taos Bank competes in the Taos County (12 U.S.C. § 1843(c)(8)) to engage indirectly in the banking market and is the largest of three commercial following nonbanking activities currently being con- banking organizations in the market, controlling about ducted by Banquest: (1) making or acquiring, for its 58.7 percent of total commercial bank deposits thereown account or the account of others, loans and other in.8 Albuquerque Bank is the eleventh largest of extensions of credit; (2) the purchase and sale of thirteen commercial banking organizations in the Alinstallment loan contracts; (3) direct lease financing; buquerque banking market and holds approximately and (4) acting as agent for the sale of credit-related life, 1.6 percent of total deposits in commercial banks in accident, health and property and casualty insurance.4 the market.9 These activities have all been determined by the Board Vizcaya is the fifth largest publicly owned banking to be closely related to banking (12 C.F.R. institution in Spain, with total assets of $12 billion and §§ 225.4(a)(1), (6), and (9)). total deposits of $7.8 billion.10 Vizcaya presently oper- Notice of these applications, affording an opportuni- ates a branch in New York and agencies in Miami and ty for interested persons to submit comments, has San Francisco, but does not engage directly or indibeen given in accordance with sections 3 and 4 of the rectly in any nonbanking activities in the United Act (48 Federal Register 32084, 32085 (1983)). The States.11 In addition, Vizcaya recently acquired Banco time for filing comments has expired, and the Board Commercial de Mayaguez, Mayaguez, Puerto Rico has considered the applications and all comments ("Mayaguez Bank"). Mayaguez Bank, with total dereceived in light of the factors set forth in section 3(c) posits of $191.2 million, controls approximately 1.6 and the considerations specified in section 4 of the percent of the total deposits in commercial banks in Act.5 Puerto Rico and is the tenth largest commercial banking organization in Puerto Rico.12 None of Vizcaya's subsidiaries competes in any of the banking markets in 1. The remaining shares of Banquest would continue to be held by existing Banquest shareholders. 2. The remaining 52 percent of Investors' shares will be acquired by individuals who currently own a majority interest in Banquest. basis of all facts of record, the Board does not believe these comments 3. During each of the next five years, Vizcaya will have the option warrant an adverse finding as to Investors' overall managerial reof purchasing $5 million per year in convertible securities of Investors. sources. Because Vizcaya owns less than a majority of Investors' voting 6. All banking data, except for Vizcaya's, are as of December 31, shares, Vizcaya may not convert any of the securities into common 1982. equity without obtaining the Board's prior approval under section 3 of 7. The Santa Fe banking is approximated by the Santa Fe, New the Act. Mexico, RMA. 4. Although Title VI of the Garn-St Germain Depository Institu- 8. The Taos County banking market is approximated by Taos tions Act of 1982 ("Garn Act") placed certain limitations on the County, New Mexico. insurance activities of bank holding companies, it specifically permits 9. The Albuquerque banking market is approximated by the Albubank holding companies to act as agent for the sale of credit life, querque, New Mexico, RMA. accident and health insurance and to continue to engage in insurance 10. Banking data for Vizcaya are as of September 30, 1982. activities in which they were engaged on or before May 1, 1982. 11. Vizcaya has committed to change its home state from New Banquest may continue to engage in credit-related property and York to New Mexico prior to its acquisition of Investors' shares, in casualty insurance activities because Banquest engaged in these accordance with section 211.22 of the Board's Regulation K. In this activities before May 1, 1982. connection, it will cease accepting deposits at its New York office 5. The Board received comments on the applications from two from United States citizens and residents and will receive only such minority shareholders of Banquest who claimed that they were not deposits as would be permissible for an Edge Act corporation. receiving equitable treatment in connection with the formation of 12. The Board has determined that Puerto Rico is not a "state" for Investors as a bank holding company. Although there are limits on the the purpose of the interstate banking prohibition of section 3(d) of the Board's ability to consider complaints by minority shareholders, the Act (12 U.S.C. § 1842(d)), and therefore the Board is not precluded Board has taken these comments into consideration in reviewing these from approving Vizcaya's acquisition of a bank holding company in applications. See, Western Bancshares, Inc. v. Board of Governors of New Mexico. (See, The Royal Bank of Canada, 66 FEDERAL RESERVE the Federal Reserve System, 480 F.2d 749 (10th Cir. 1973). Upon the BULLETIN 582 (1980)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 Federal Reserve Bulletin • November 1983 which Banquest's subsidiary banks operate. Further, The acquisition of Banquest's shares by Investors, neither Vizcaya nor Investors, nor any of their princi- and of Investors' shares by Vizcaya, shall not be made pals is affiliated with any other banking organizations before the thirtieth calendar day following the effective in any of the relevant markets. Therefore, it appears date of this Order, or later than three months after the that consummation of these proposals would not result effective date of this Order, unless such period is in any adverse effects upon competition or increase extended for good cause by the Board or by the the concentration of banking resources in any relevant Federal Reserve Bank of Kansas City, acting pursuant area. Accordingly, the Board concludes that competi- to delegated authority. The determination as to Vizcative considerations are consistent with approval of ya's and Investors' ability to engage indirectly in the these applications. nonbanking activities currently conducted by Ban- The financial and managerial resources and future quest is subject to the conditions set forth in section prospects of Vizcaya, Investors, Banquest, and its 225.4(c) of Regulation Y (12 C.F.R. § 225.4(c)) and to subsidiaries are regarded as satisfactory and consis- the Board's authority to require such modification or tent with approval. Considerations relating to the con- termination of the activities of a holding company or venience and needs of the communities to be served any of its subsidiaries as the Board finds necessary to are also consistent with approval of the applications. assure compliance with the provisions and purposes of Further, there is no evidence in the record to indicate the Act and the Board's regulations and orders issued that approval of these proposals would result in undue thereunder, or to prevent evasion thereof. concentration of resources, decreased or unfair com- By order of the Board of Governors, effective petition, conflicts of interest, unsound banking prac- October 3, 1983. tices or other adverse effects on the public interest. Accordingly, the Board has determined that the bal- Voting for this action: Chairman Volcker and Governors ance of the public interest factors it must consider Martin, Partee, Teeters, Rice, and Gramley. Absent and not under section 4 of the Act is consistent with approval voting: Governor Wallich. of the applications. Based upon the foregoing and other facts of record, the Board has determined that JAMES MCAFEE, the applications should be and hereby are approved. [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During October 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) Baraett Banks of Florida, Inc., Flagship Bank of Kissimmee, October 11, 1983 Jacksonville, Florida Kissimmee, Florida Flagship Bank of Okeechobee, Okeechobee, Florida Flagship Bank of Putnam County, Crescent City, Florida Beresford Bancorporation, Inc., The First National Bank of Beresford, October 6, 1983 Britton, South Dakota Beresford, South Dakota Capitol Bancorporation, Inc., West Dakota Corporation, October 6, 1983 Pierre, South Dakota Lead, South Dakota Central Bancorporation, Inc., Central Bank at Stapleton, N.A., September 30, 1983 Denver, Colorado Denver, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 879 Section 3—Continued Board action Applicant Bank(s) (effective date) Central Colorado Company, Denver, Colorado C.C.B. Inc., Denver, Colorado First Arkansas Bankstock Corporation, First Charter Bancshares, Inc. October 4, 1983 Little Rock, Arkansas Springdale, Arkansas First State Bank, Springdale, Arkansas Harris Bankcorp, Inc., Bank of Naperville, October 20, 1983. Chicago, Illinois Naperville, Illinois Section 4 Nonbanking Effective activity date Midland Bank PLC, Crocker Mortgage Company, Inc., October 27, 1983 London, England Los Angeles, California Midland California Holding Limited, London, England Crocker National Corporation, San Francisco, California Southeast Banking Corporation, Southeast Mortgage Company, October 27, 1983 Miami, Florida Miami, Florida By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date American Banks of Florida, Flagship National Bank of Ala- Atlanta September 27, 1983 Inc., chua County, Jacksonville, Florida Gainesville, Florida American Exchange Bancorp, American Exchange Bank and Kansas City September 28, 1983 Inc., Trust Company, Norman, Oklahoma Norman, Oklahoma American National Bancorp, Sheridan Bancorp, Inc., Kansas City October 13, 1983 Inc., Lawton, Oklahoma Lawton, Oklahoma The Sheridan Bank and Trust Company, Lawton, Oklahoma American National Holding Central National Bank of Chicago October 7, 1983 Company, St. Johns, Kalamazoo, Michigan Saint Johns, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

880 Federal Reserve Bulletin • November 1983 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Banks of Iowa, Inc., Henry County Savings Bank, Chicago October 12, 1983 Des Moines, Iowa Mount Pleasant, Iowa Bay Rock Bancshares, Inc., The First National Bank of Minneapolis October 7, 1983 Maiden Rock, Wisconsin Maiden Rock, Maiden Rock, Wisconsin Brewster Bankshares Incorpo- Brewster National Bank, Kansas City September 19, 1983 rated, Brewster, Kansas Brewster, Kansas City Bancshares, Inc., The City State Bank, Kansas City September 19, 1983 Fort Scott, Kansas Fort Scott, Kansas Cole-Taylor Financial Group, Skokie Trust & Savings Bank, Chicago October 5, 1983 Inc., Skokie, Illinois Chicago, Illinois The Main Corporation, Chicago, Illinois Tayco Bancshares, Inc., Chicago, Illinois T-C Holdings, Inc., Chicago, Illinois Columbiana Bancshares, Inc., First National Bank of Colum- Atlanta October 17, 1983 Columbiana, Alabama biana, Columbiana, Alabama Commercial Holding Company, Commercial Bank and Trust St. Louis October 4, 1983 Inc., Company, Paris, Tennessee Paris, Tennessee Community Banking Corpora- Community Bank of Manatee, Atlanta September 30, 1983 tion, Bradenton, Florida Bradenton, Florida Dawson Corporation, The Mitch Corporation, Kansas City September 19, 1983 Lexington, Nebraska Mitchell, Nebraska Clarke, Inc., Papillion, Nebraska Delta Bancshares Company, Eureka Bank, St. Louis September 30, 1983 St. Louis, Missouri Eureka, Missouri Dows Bancorporation, Farmers State Bank of Dows, Chicago October 7, 1983 Dows, Iowa Dows, Iowa Farmers National Bancorp of The Farmers National Bank of Cleveland September 29, 1983 Cynthiana, Inc., Cynthiana, Cynthiana, Kentucky Cynthiana, Kentucky First Bankers Corporation of Flagship Bank of Polk County, Atlanta October 14, 1983 Florida, Haines City, Florida Pompano Beach, Florida First Citizens Bancorporation of Rock Hill National Bank, Richmond October 21, 1983 South Carolina, Inc., Rock Hill, South Carolina Columbia, South Carolina First City Bancorp, Inc., First City Bank, Atlanta September 27, 1983 Gainesville, Florida Gainesville, Florida First Community Bancshares, Adrian Buckhannon Bank, Richmond September 28, 1983 Inc., Buckhannon, West Virginia Princeton, West Virginia Upshur National Bank, Buckhannon, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 881 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Fowler Bancorp, Inc., The First National Bank of Kansas City September 22, 1983 Fowler, Colorado Fowler, Fowler, Colorado First Guthrie Bancshares, Inc., The Liberty State Bank of Kansas City September 21, 1983 Guthrie, Oklahoma Tahlequah, Tahlequah, Oklahoma First Illinois Bancorp, Inc., First National Bank in Chester, St. Louis September 28, 1983 Manchester, Missouri Chester, Illinois First National Bancorp, White County Bank, Atlanta October 12, 1983 Gainesville, Georgia Cleveland, Georgia First NorthWest Bancorpora- Cascade Security Bank, San Francisco September 29, 1983 tion, Enumclaw, Washington Seattle, Washington 1st United Bancorporation, 1st United Bank of Sidney, Minneapolis October 7, 1983 Sidney, Montana Sidney, Montana Florida Central Banks, Inc., Bank of Washington County, Atlanta September 27, 1983 Chipley, Florida Chipley, Florida Florida Community Banks, Inc. First Bank of Holmes County, Atlanta September 28, 1983 Bonifay, Florida Bonifay, Florida F N BanCorp, Inc., First American National Bank of Atlanta October 3, 1983 Tullahoma, Tennessee Tullahoma, Tullahoma Tennessee Fourth Financial Corporation, Salina Bancshares, Inc., Kansas City October 7, 1983 Wichita, Kansas Wichita, Kansas Gorham Bancorp, Inc., The Bank of Gorham, St. Louis October 12, 1983 Murphysboro, Illinois Gorham, Illinois Grand Bancshares, Inc., Grand Bank Airport Freeway at Dallas September 30, 1983 Dallas, Texas Highway 157, N.A., Bedford, Texas Guaranty Bankshares, Ltd., Guaranty Bank and Trust Chicago September 26, 1983 Cedar Rapids, Iowa Company, Cedar Rapids, Iowa Higginsville Bancshares, Inc., Higginsville State Bank, Kansas City September 26, 1983 Higginsville, Missouri Higginsville, Missouri Horizon Bancorp, Horizon Trust Company, N.A., New York October 3, 1983 Morristown, New Jersey Morristown, New Jersey Hub Bancshares, Inc., Hub City Bank and Trust Atlanta October 5, 1983 Lafayette, Louisiana Company, Lafayette, Louisiana Hudson Valley Holding Corp., Hudson Valley National Bank, New York October 13, 1983 Yonkers, New York Yonkers, New York I & B, Inc., City Bancshares, Inc., Kansas City September 19, 1983 Cherry vale, Kansas Fort Scott, Kansas Industrial Bancshares, Inc., One Security, Inc., Kansas City October 11, 1983 Kansas City, Kansas Kansas City, Kansas Mission Bancshares, Inc., Mission, Kansas Valley View Bancshares, Inc., Overland Park, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 Federal Reserve Bulletin • November 1983 Section 3—Continued . . .. , , x Reserve Effective Applic ant D Bank(s) ^ ^ Jackass Creek Land and Live- First Madison Valley Bank, Minneapolis October 21, 1983 stock Company, Ennis, Montana Ennis, Montana Landmark Financial Group, Arlington Heights Bank of Fort Dallas September 27, 1983 Inc., Worth, Fort Worth, Texas Fort Worth, Texas Lincoln Bankshares, Inc., Bank of Lincoln, St. Louis October 20, 1983 Lincoln, Arkansas Lincoln, Arkansas Local Investors, Inc., State Bank and Trust Company, Atlanta October 17, 1983 Unadilla, Georgia Unadilla, Georgia Citizens Bank, Vienna, Georgia Logansport Bancorp, Inc., The Farmers & Merchants State Chicago September 29, 1983 Logansport, Indiana Bank, Logansport, Indiana Mineola Bancshares, Inc., Mineola State Bank, Dallas September 30, 1983 Mineola, Texas Mineola, Texas The Mitch Corporation, First National Bank in Mitchell, Kansas City September 19, 1983 Mitchell, Nebraska Mitchell, Nebraska Mountain Bancorporation, Inc., Bank of Park County, Kansas City September 15, 1983 Denver, Colorado Bailey, Colorado Mountain Valley Bank, Conifer, Colorado National Bancshares Corpora- Heights State Bank, Dallas October 12, 1983 tion of Texas, Houston, Texas San Antonio, Texas North Fork Bancorporation, The Bridgehampton National New York October 5, 1983 Inc., Bank, Mattituck, New York Bridgehampton, New York Northwest Bancshares, Inc., Bank of the Northwest, Kansas City September 22, 1983 Woodward, Oklahoma Woodward, Oklahoma Onalaska Holding Company, Bank of Onalaska, Minneapolis October 20, 1983 Inc., Onalaska, Wisconsin Onalaska, Wisconsin One Security, Inc., Security Bancshares, Inc., Kansas City October 11, 1983 Kansas City, Kansas Kansas City, Kansas Peoples Bancorp, Inc., Peoples State Bank, Chicago October 4, 1983 Prairie du Chien, Wisconsin Prairie du Chien, Wisconsin Progressive Bancorporation, Progressive Bancshares Corpora- Atlanta October 14, 1983 Inc., tion, Houma, Louisiana Houma, Louisiana Progressive Bank and Trust Company, Houma, Louisiana Progressive Bancshares, Inc., Farmers Bank, Cleveland October 14, 1983 Owingsville, Kentucky Owingsville, Kentucky Ridgway Bancorp, Inc., Bank of Christopher, St. Louis October 11, 1983 Norris City, Illinois Christopher, Illinois Scottscom Bancorp, Inc., Scottsdale Commercial Bank, San Francisco October 5, 1983 Scottsdale, Arizona Scottsdale, Arizona Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 883 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Tri County Investment Com- Tri County State Bank Holding Minneapolis September 28, 1983 pany, Company, Inc., Chamberlain, South Dakota Chamberlain, South Dakota Tri-State Bancshares, Inc., The First National Bank of Polk Atlanta October 19, 1983 Knoxville, Tennessee County, Copperhill, Tennessee United Danville, Inc., Bank of Danville, St. Louis September 26, 1983 Danville, Kentucky Danville, Kentucky Victoria Bankshares, Inc., Allied First National Bank, Dallas October 13, 1983 Victoria, Texas Halletsville, Texas Wainwright Financial Corpora- Wainwright Bank and Trust Chicago September 29, 1983 tion, Company, Noblesville, Indiana Noblesville, Indiana Webb Bancshares, Inc., The Farmers State Bank of Kansas City September 23, 1983 Highland, Kansas Highland, Highland, Kansas Section 4 Nonbanking Reserve Effective Applicant company Bank date First National Corporation, data processing activities Atlanta October 5, 1983 Covington, Louisiana Sherman County Management, Skotchdopole Agency, Inc., Kansas City September 29, 1983 Inc., Ravenna, Nebraska Loup City, Nebraska Union Bancorp Inc., Bankers Leasing Services, Inc., Chicago September 30, 1983 Grand Rapids, Michigan Southfield, Michigan Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant company Bank date Chimney Rock Bancorp., Swanton Agency, Inc., Kansas City September 15, 1983 Bayard, Nebraska Swan ton, Nebraska general insurance activities Farmers State Bancorporation Farmers State Bank, Kansas City October 12, 1983 of Yuma, Inc., Yuma, Colorado Yuma, Colorado Farmers State Agency, Yuma, Colorado Financial Services of Evans- Farmers State Bank of Evans- Minneapolis October 21, 1983 ville, Inc., ville, Albany, Minnesota Evansville, Minnesota general insurance agency activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

884 Federal Reserve Bulletin • November 1983 ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Central Fidelity Bank, Central Fidelity Bank, N.A., Richmond October 7, 1983 Norfolk, Virginia Richmond, Virginia First Virginia Bank-Colonial, Virginia National Bank-Azalea Richmond October 12, 1983 Richmond, Virginia Mall, Richmond, Virginia The Schenectady Trust The Bank of New York, New York October 18, 1983 Company, New York, New York Schenectady, New York Valley Bank and Trust Bank of Utah, San Francisco October 3, 1983 Company, Brigham City, Utah Salt Lake City, Utah 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. v. 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 A18 All reporting banks Bank credit A19 Banks with assets of $1 billion or more A5 Reserves and borrowings of depository A20 Banks in New York City institutions A21 Balance sheet memoranda A5 Federal funds and repurchase agreements of A22 Branches and agencies of foreign banks large member banks A23 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS FINANCIAL MARKETS A6 Federal Reserve Bank interest rates A7 Reserve requirements of depository institutions A24 Commercial paper and bankers dollar A8 Maximum interest rates payable on time and acceptances outstanding savings deposits at federally insured institutions A24 Prime rate charged by banks on short-term A9 Federal Reserve open market transactions business loans A25 Terms of lending at commercial banks A26 Interest rates in money and capital markets FEDERAL RESERVE BANKS All Stock market—Selected statistics A28 Selected financial institutions—Selected assets A10 Condition and Federal Reserve note statements and liabilities All Maturity distribution of loan and security holdings FEDERAL FINANCE MONETAR Y AND CREDIT AGGREGATES A29 Federal fiscal and financing operations A30 U.S. Budget receipts and outlays A12 Aggregate reserves of depository institutions A31 Federal debt subject to statutory limitation and monetary base A31 Gross public debt of U.S. Treasury—Types and A13 Money stock measures and components ownership A14 Bank debits and deposit turnover A32 U.S. government securities dealers— A15 Loans and securities of all commercial banks Transactions, positions, and financing A33 Federal and federally sponsored credit agencies—Debt outstanding COMMERCIAL BANKING INSTITUTIONS A16 Major nondeposit funds A17 Assets and liabilities, last-Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1983 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE A52 U.S. international transactions—Summary A34 New security issues—State and local A53 U.S. foreign trade governments and corporations A53 U.S. reserve assets A35 Open-end investment companies—Net sales and A53 Foreign official assets held at Federal Reserve asset position Banks A35 Corporate profits and their distribution A54 Foreign branches of U.S. banks—Balance sheet A36 Nonfinancial corporations—Assets and data liabilities A56 Selected U.S. liabilities to foreign official A36 Total nonfarm business expenditures on new institutions plant and equipment A37 Domestic finance companies—Assets and liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES A56 Liabilities to and claims on foreigners REAL ESTATE A57 Liabilities to foreigners A59 Banks' own claims on foreigners A38 Mortgage markets A60 Banks' own and domestic customers' claims on A39 Mortgage debt outstanding foreigners A60 Banks' own claims on unaffiliated foreigners A61 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT domestic offices and foreign branches A40 Total outstanding and net change A41 Terms REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A62 Liabilities to unaffiliated foreigners A63 Claims on unaffiliated foreigners A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A64 Foreign transactions in securities Domestic Nonfinancial Statistics A65 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A44 Nonfinancial business activity—Selected measures A44 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A45 Labor force, employment, and unemployment A46 Industrial production—Indexes and gross value A65 Discount rates of foreign central banks A48 Housing and construction A66 Foreign short-term interest rates A49 Consumer and producer prices A66 Foreign exchange rates A50 Gross national product and income A51 Personal income and saving A67 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1982 1983 1983 Q4 Ql Q2 Q3 May June July Aug. Sept. Reserves of depository institutions 1 Total 11.8 4.1 12.4 4.7 -.8 15.6 6.0 -3.4 .7 2 Required 10.8 3.8 12.6' 4.6 .1 14.8 5.2 -1.5 -.9 3 Nonborrowed 13.6 3.5 6.2 1.8 1.1 -6.7 12.4 -6.6 4.2 4 Monetary base2 8.2 9.5 11.1 7.6 10.5 10.1 5.1 6.5 9.0 Concepts of money and liquid assets3 5 Ml 13.1 14.1 12.2 8.9 26.3 10.2 8.9 2.8' .9 6 M2 9.3 20.3 10.1 7.8 12.4 1101..40 6.8' 6^ 4.6 7 M3 9.5 10.2 8.1 8.2 10^ 5.5' 8.7 7.2 8 L 8.6 10.8'' 9.9' n.a. 10.4' 11.(X n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 5.3 14.2' 3.0 6.1 -3.1' 10.1 6.6 5.7 6.0 10 Savings4 13.4 -43.4 -14.8 -6.8 0 0 -10.2 -11.2' -8.7 11 Small-denomination time5 -.5 -48.5 24.1 14.9 -10.1 2.6 24.8 22.4 17.3 12 Large-denomination time6 -2.0 -53.9 -24.8 -8.5 38.0 -.8 -8.8 -2.9 -3.8 13 Thrift institutions7 6.2 12.1 16.0 13.7 12.0 13.3 14.6 13.5 12.5 14 Total loans and securities at commercial banks8 6.3' lO^ 9.9' 8.6 10.7 9.9 9.7 11.2 4.9 Interest rates (levels, percent per annum) 1982 1983 1983 Q4 Ql Q2 Q3 June July Aug. Sept. Oct. Short-term rates 1 1 1 1 5 6 8 7 C T D Fe r o i e s d m c a e o s m r u a u e l r n r y t f c u i b w a n i l i l d n ls p s d 9 a o ( p 3 w e - r m b ( o o 3 n r - r t m o h, w o n s in e th c g ) o 1 1 0 n 1 ' d 12 a ry market)11 8 7 9 9 . . . . 8 2 2 9 0 5 8 0 8 8 8 8 . . . . 3 1 6 5 4 1 5 0 8 8 8 8 . . . . 6 4 5 8 2 0 0 0 9 9 9 8 . . . . 3 1 4 5 4 4 6 0 9 8 8 8. . . . 9 0 5 7 8 0 0 9 9 9 8 9 . . . . 2 3 0 5 5 7 8 0 9 9 9 8 . . . . 3 5 5 5 4 4 6 0 9 9 9 8 . . . . 4 2 0 5 5 4 0 0 8 8 9 8 . . . . 4 5 9 6 8 0 9 4 Long-term rates Bonds 19 U.S. government13 ... 10.72 10.87 10.81 11.79 11.12 11.59 11.96 11.82 11.77 20 State and local government . 9.90 9.43 9.23 9.61 9.52 9.53 9.72 9.58 9.66 2 2 2 1 Co A n a v a e n u t t i i o l n it a y l ( m ne o w rt g i a ss g u e e s ) 6 ' 1 1 3 2 . . 7 1 9 0 1 1 3 1 . . 2 8 6 9 1 1 3 1 . . 1 4 6 6 1 1 3 2 . . 8 3 3 9 1 1 3 1 . . 3 8 7 7 1 1 4 2 . . 0 3 0 2 1 1 3 2 . . 9 2 0 5 1 1 3 2 . . 6 5 0 3 1 1 3 2 . . 5 4 2 3 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. 1981, 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 • November 1983 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures Factors 1983 1983 Aug. Sept/ Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19P Oct. 26p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 163,698 168,182 169,129 163,970 169,105 173,608 172,854 170,076 168,840 169,033 2 U.S. government securities1 144,901 148,550 149,300 144,732 149,095 153,334 152,688 150,359 148,668 149,166 3 Bought outright 144,578 145,487 147,045 144,732 145,805 146,463 146,396 148,270 146,412 147,479 4 Held under repurchase agreements 323 3,063 2,255 0 3,290 6,871 6,292 2,089 2,256 1,687 5 Federal agency securities 8,769 8,995 8,936 8,740 8,985 9,414 9,175 9,016 8,908 8,892 6 Bought outright 8,742 8,739 8,734 8,740 8,737 8,737 8,737 8,736 8,734 8,731 7 Held under repurchase agreements 27 256 202 0 248 677 438 280 174 161 8 Acceptances 30 139 131 0 61 289 558 11 106 110 9 Loans 1,712 1,446 839 1,150 2,097 1,278 1,413 1,271 577 568 10 Float 763 1,199 1,238 1,603 966 1,112 838 1,271 1,730 1,187 11 Other Federal Reserve assets 7,524 7,853 8,685 7,745 7,901 8,181 8,182 8,148 8,851 9,109 12 Gold stock 11,128 11,128 11,127 11,128 11,128 11,128 11,128 11,128 11,128 11,127 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 160,453 161,684 162,578 162,678 161,542 160,656 161,329 162,853 163,260 162,527 16 Treasury cash holdings 490 471 475 474 474 471 470 475 477 475 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,300 7,584 6,916 3,438 7,175 14,157 12,326 8,628 5,258 5,829 18 Foreign 237 212 216 200 207 200 256 188 216 208 19 Other 431 491 614 461 605 417 474 646 628 647 20 Service-related balances and adjustment... 1,066 1,117 1,185 1,070 1,112 1,047 1,118 1,126 1,095 1,269 21 Other Federal Reserve liabilities and capital 5,289 5,569 5,689 5,649 5,617 5,770 5,738 5,797 5,645 5,597 22 Reserve accounts2 21,965 20,585 20,986 19,533 21,907 20,424 20,674 19,897 21,793 22,011 End-of-month figures Wednesday figures 1983 1983 Aug. Sept. Oct. Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. \9p Oct. 26? SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 167,778 175,755 165,267 165,819 174,750 170,883 169,654 171,851 169,772 167,580 24 U.S. government securities1 146,489 155,423 146,096 144,791 149,502 149,370 149,528 148,599 148,461 147,272 25 Bought outright 144,226 146,171 146,0% 144,791 148,924 145,194 146,789 148,599 145,075 147,272 26 Held under repurchase agreements 2,263 9,252 0 0 578 4,176 2,739 0 3,386 0 27 Federal agency securities 8,932 9,288 8,731 8,737 8,998 9,071 8,984 8,734 8,980 8,731 28 Bought outright 8,742 8,737 8,731 8,737 8,737 8,737 8,737 8,734 8,734 8,731 29 Held under repurchase agreements 190 551 0 0 261 334 247 0 246 0 30 Acceptances 209 1,122 0 0 9 89 20 0 117 0 31 Loans 3,633 1,625 387 2,410 6,817 2,359 1,385 2,3% 1,386 1,505 32 Float 979 -60 750 1,574 1,420 1,737 1,604 3,641 1,705 816 33 Other Federal Reserve assets 7,536 8,357 9,303 8,307 8,004 8,257 8,133 8,481 9,123 9,256 34 Gold stock 11,128 11,128 11,126 11,128 11,128 11,128 11,128 11,128 11,127 11,126 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 161,122 161,046 162,515 162,285 161,136 160,787 162,032 163,608 163,080 162,479 38 Treasury cash holdings 490 468 478 474 471 468 474 475 All 478 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 4,189 16,557 4,841 3,273 12,806 14,253 9,694 7,151 5,168 4,624 40 Foreign 248 297 339 243 186 205 194 182 257 246 41 Other 465 438 749 443 470 416 400 691 592 671 42 Service-related balances and adjustment... 845 911 956 885 898 908 912 936 958 960 43 Other Federal Reserve liabilities and capital 5,112 5,800 5,691 5,273 5,462 5,535 5,525 5,495 5,478 5,372 44 Reserve accounts2 24,839 19,769 19,227 22,475 22,853 17,843 19,955 22,845 23,292 22,279 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. Dec. Mar. Apr. May June July Aug. Sept. Oct." 1 Reserve balances with Reserve Banks1 26,163 24,804 22,168 22,565 22,010 21,808 22,139 21,965 20,585 20,986 2 Total vault cash (estimated) 19,538 20,392 19,484 19,569 19,710 20,098 20,413 20,035 20,798 20,462 3 Vault cash at institutions with required reserve balances2 13,577 14,292 13,027 13,246 13,339 13,593 13,647 13,656 13,927 13,924 4 Vault cash equal to required reserves at other institutions 2,178 2,757 2,844 2,839 2,933 3,014 3,161 3,039 3,404 3,132 5 Surplus vault cash at other institutions3 3,783 3,343 3,613 3,484 3,438 3,491 3,605 3,340 3,467 3,406 6 Reserve balances + total vault cash4 45,701 45,196 41,652 42,134 41,720 41,906 42,552 42,000 41,383 41,448 7 Reserve balances + total vault cash used to satisfy reserve requirements4'5 41,918 41,853 38,039 38,650 38,282 38,415 38,947 38,660 37,916 38,042 8 Required reserves (estimated) 41,606 41,353 37,602 38,174 37,833 37,935 38,440 38,214 37,418 37,626 9 Excess reserve balances at Reserve Banks4-6 312 500 437 476 449 480 507 446 498 416 10 Total borrowings at Reserve Banks 642 697 852 993 902 1,714 1,382 1,573 1,441 839 11 Seasonal borrowings at Reserve Banks 53 33 53 82 98 121 172 198 191 142 12 Extended credit at Reserve Banks 149 187 318 407 514 964 572 490 515 255 Weekly averages of daily figures for week ending 1983 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26P 13 Reserve balances with Reserve Banks1 22,592 21,966 20,449 19,533 21,907 20,424 20,674 19,897 21,793 22,011 14 Total vault cash (estimated) 19,414 19,361 20,735 21,364 19,682 21,364 20,963 21,017 20,057 19,692 15 Vault cash at institutions with required reserve balances2 13,503 13,894 13,752 13,828 13,518 14,539 14,176 1133,,992266 13,494 13,769 16 Vault cash equal to required reserves at other institutions 2,656 2,986 3,470 3,757 3,006 3,412 3,306 3,452 3,160 2,822 17 Surplus vault cash at other institutions3 3,255 2,481 3,513 3,779 3,158 3,413 3,481 3,639 3,403 3,101 18 Reserve balances + total vault cash4 42,006 41,327 41,184 40,897 41,589 41,788 41,637 40,914 41,850 41,703 19 Reserve balances + total vault cash used to satisfy reserve requirements4'5 38,751 38,846 37,671 37,118 38,431 38,375 38,156 37,275 38,447 38,602 20 Required reserves (estimated) 38,350 38,353 36,914 36,714 38,086 37,926 37,534 36,546 38,106 38,162 21 Excess reserve balances at Reserve Banks4'6 401 493 757 404 345 449 622 729 341 440 22 Total borrowings at Reserve Banks 1,579 1,712 1,246 1,150 2,097 1,278 1,413 1,271 577 568 23 Seasonal borrowings at Reserve Banks 207 216 192 185 186 204 161 139 138 144 24 Extended credit at Reserve Banks 524 499 489 501 520 542 539 645 96 5 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 historically.) 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1983, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 One day and continuing contract 1 Commercial banks in United States 52,690'' 59,384' 61,753' 56,484' 52,486' 58,481 66,374 61,282 57,028 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 23,803 23,687 23,248 25,292 24,232' 23,298 22,914 24,767 25,736 3 Nonbank securities dealers 3,877 4,210 4,054 3,925 4,071 4,846 4,550 5,444 5,780 4 All other 25,195 24,940 25,675 25,611 25,121 25,843 25,719 25,775 26,037 All other maturities 5 Commercial banks in United States 6,184 5,754 5,825 5,885 6,664 6,506 6,410 5,769 5,234 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 9,105 8,994 9,110 8,652' 9,036' 8,787 8,614 8,608 8,721 7 Nonbank securities dealers 6,582 6,134 5,689 5,814 6,415 5,638 5,365 5,300 5,997 8 All other 9,606 9,713 9,721 9,278 9,183' 8,798 8,939 9,127 9,367 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 23,065 25,322 24,353' 22,932' 22,080' 25,793 30,874 27,448 25,251 10 Nonbank securities dealers 4,710 4,736 4,778' 4,036r 4,487' 4,395 4,882 4,742 4,809 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

A6 Domestic Nonfinancial Statistics • November 1983 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 10/31/83 date rate 10/31/83 rate 10/31/83 rate 10/31/83 rate Boston 8V2 12/14/82 9 8 /2 9 91/2 10 10'/> 1 1 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... 81/2 12/14/82 9 81/2 9 9 /2 10 101/2 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 l v l e F l) . — R. B o a f n k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. 71/4 In effect Dec. 31, 1973 71/2 71/2 1978— JJuullyy 3 77-71 /'A4 — May 5 13-14 14 1974— Apr. 2 3 5 0 71 8 / 2-8 8 8 AAuugg.. 7 1 1 0 7V4 7 7 8 V !/ 4 4 Nov. 2 8 13 1 - 4 1 4 1 1 4 3 Dec. 1 9 6 73 7 / V t- 4 8 7 73 3 / / 4 4 O Se c p t. t . 7 1 7 6 88 8 -8 '/ '/ : 2 81/2 Dec. 4 6 1 1 3 2 1 1 2 3 70 81/2 1975— Jan. 6 71/4-73/4 73/4 Nov. 1 81/2-91/2 91/2 1982> — July 20 111/2-12 111/2 10 71/4-73/4 71/4 3 9*/2 91/2 23 111/2 ll'/2 24 7!/4 7'/4 Aug. 2 11-11'/> 11 Feb. 5 63/4-71/4 63/4 1979— July ?0 10 10 3 11 11 7 63/4 63/4 AAuugg.. 17 10-10'/2 101/2 16 10>/> 10'/2 Mar. 10 61/4-63/4 6'/4 70 10'/2 10'/2 27 10-10'/! 10 14 61/4 6V4 SSeepptt.. 19 101/2-1 1 11 30 10 10 May 16 6-61/4 6 71 11 11 Oct. 12 91/2-10 91/2 23 6 6 Oct. 8 11-12 12 13 91/2 91/2 10 12 12 Nov. 22 9-91/2 9 1976— Jan. 19 51/2-6 51/2 26 9 9 23 51/2 51/2 1980— Feb. 1 5 12-13 13 Dec. 14 8'/2-9 9 Nov. 22 5'/4-5'/2 51/4 19 13 13 15 8 '/2—9 81/2 26 51/4 51/4 May 29 12-13 13 17 8'/2 8V2 30 12 12 1977— Aug. 30 51/4-53/4 51/4 June 13 11-12 11 31 51/4-53/4 53/4 16 101-11 1 11 Sept. 2 53/4 53/4 Julv ?8 10 Oct. 26 6 6 29 10 10 Sept. 76 11 11 1978— Jan. 9 6-61/2 61/2 Nov. 17 12 12 May 2 11 0 6 6 !/ 1/ 2 2 -7 6 7 1/2 Dec. 8 5 12 1 - 3 1 3 1 1 3 3 12 7 7 ffect Oct 31, 1983 8'/2 8'/> 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

Policy Instruments A7 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 ttee ssii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo ooff ss iitt dd 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 3 12/30/82 9>/i 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 1'/i years 3 10/6/83 TTiimmee aanndd ssaavviinnggss22''33 11 ''//22 yyeeaarrss oorr mmoorree 0 10/6/83 Savings 3 3/16/67 Eurocurrency liabilities TTiimmee44 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vl 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 2'/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 a 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 natural 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

A8 Domestic Nonfinancial Statistics • November 1983 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions' Percent per annum Commercial banks mut S u a al v i s n a g v s i n a g n s d b l a o n a k n s a ( s t s h o r c if i t a t i i n o s n t s it u a t n io d n s)1 In effect Oct. 30, 1983 In effect Oct. 30, 1983 Type of deposit Percent Effective date Effective date 1 Savings 551'/4/ 4 7/1/79 5 'A 7/1/79 2 Negotiable order of withdrawal accounts 12/31/80 5'/4 12/31/80 3 Negotiable order of withdrawal accounts of $2,500 or more 1/5/83 1/5/83 4 Money market deposit account 12/14/82 12/14/82 5 7 T - im 31 e d a a c y c s o u o n f t s l es b s y th m an a tu $ r 2 i , t 5 y 0 03 51/4 9/1/82 5l/2 9/1/82 6 7-31 days of $2,500 or more 1/5/83 1/5/83 7 More than 31 days 10/1/83 10/1/83 1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable right to require seven days notice before withdrawals. When the average balance by commercial banks and thrift institutions on various categories of deposits were is less than $2,500, the account is subject to the maximum ceiling rate of interest removed. For information regarding previous interest rate ceilings on all catego- for NOW accounts; compliance with the average balance requirement may be ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the determined over a period of one month. Depository institutions may not guarantee Federal Home Loan Bank Board Journal, and the Annual Report of the Federal a rate of interest for this account for a period longer than one month or condition Deposit Insurance Corporation before November 1983. the payment of a rate on a requirement that the funds remain on deposit for longer 2. Effective Dec. 14, 1982, depository institutions are authorized to offer a new than one month. account with a required initial balance of $2,500 and an average maintenance 3. Deposits of less than $2,500 issued to governmental units continue to be balance of $2,500 not subject to interest rate restrictions. No minimum maturity subject to an interest rate ceiling of 8 percent. period is required for this account, but depository institutions must reserve the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1983 TTyyppee ooff ttrraannssaaccttiioonn 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 1,259 2,880 516 1,721 666 1,768 3,184 2 Gross sales 7,331 6,746 8,369 0 0 0 0 0 289 214 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 0 0 0 0 0 0 500 Others within 1 year 5 Gross purchases 912 317 312 0 0 173 0 156 0 0 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 1,198 826 1,795 1,398 1,162 2,212 902 8 Exchange -18,251 -12,869 -14,164 -900 0 -1,842 -916 0 -5,344 -753 9 Redemptions 0 0 0 0 0 0 87 0 0 0 1 to 5 years 10 Gross purchases 2,138 1,702 1,797 0 0 595 0 481 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -8,909 -10,299 -14,524 -1,198 -684 -41 -1,398 -1,121 -2,212 -902 13 Exchange 13,412 10,117 11,804 900 0 1,367 916 0 3,130 753 5 to 10 years 14 Gross purchases 703 393 388 0 0 326 0 215 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -3,092 -3,495 -2,172 0 -142 -1,754 0 -41 516 0 17 Exchange 2,970 1,500 2,128 0 0 300 0 0 1,300 0 Over 10 years 18 Gross purchases 811 379 307 0 0 108 0 124 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -426 0 -601 0 0 0 0 0 -516 0 21 Exchange 1,869 1,253 234 0 0 175 0 0 914 0 All maturities 22 Gross purchases 12,232 16,690 19,870 1,259 2,880 1,719 1,721 1,642 1,768 3,184 23 Gross sales 7,331 6,769 8,369 0 0 0 0 0 289 214 24 Redemptions 3,389 1,816 3,000 0 0 0 87 0 0 500 Matched transactions 25 Gross sales 674,000 589,312 543,804 47,892 37,873 43,404 50,086 40,934 45,989 48,193 26 Gross purchases 675,496 589,647 543,173 47,724 36,205 45,001 47,783 43,037 44,480 47,667 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 3,526 7,671 0 7,891 7,816 2,263 37,211 28 Gross sales 113,040 78,733 130,286 3,526 3,984 3,687 6,730 8,978 0 30,223 29 Net change in U.S. government securities 3,869 9,626 8,358 1,090 4,899 -371 493 2,583 2,234 8,933 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 8 7 * 17 10 138 5 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 379 340 0 678 558 189 2,871 34 Gross sales 28,863 13,576 18,638 379 92 248 463 773 0 2,510 35 Net change in federal agency obligations 555 130 130 -8 241 -248 198 -225 51 356 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 0 704 -704 203 -203 209 913 37 Total net change in System Open Market Account 4,497 9,175 9,773 1,082 5,844 -1,322 893 2,155 2,493 10,203 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

A10 Domestic Nonfinancial Statistics • November 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1983 1983 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. Sept. Oct. Consolidated condition statement ASSETS 1 Gold certificate account 11,128 11,128 11,128 11,127 11,126 11,128 11,128 11,126 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 444 451 453 458 465 415 443 468 Loans 4 To depository institutions 2,359 1,385 2,396 1,386 1,505 3,633 1,625 387 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 89 20 0 111177 0 220099 11,,112222 00 Federal agency obligations 7 Bought outright 8,737 8,737 8,734 8,734 8,731 8,742 8,737 8,731 8 Held under repurchase agreements 334 247 0 246 0 190 551 0 U.S. government securities Bought outright 9 Bills 61,921 63,516 65,326 61,802 63,999 60,953 62,898 62,823 10 Notes 63,044 63,044 63,044 63,044 63,044 63,044 63,044 63,044 11 Bonds 20,229 20,229 20,229 20,229 20,229 20,229 20,229 20,229 12 Total bought outright1 145,194 146,789 148,599 145,075 147,272 144,226 146,171 146,096 13 Held under repurchase agreements 4,176 2,739 0 3,386 0 2,263 9,252 0 14 Total U.S. government securities 149,370 149,528 148,599 148,461 147,272 146,489 155,423 146,096 15 Total loans and securities 160,889 159,917 159,729 158,944 157,508 159,263 167,458 155,214 16 Cash items in process of collection 8,298 9,188 13,390 9,054 7,576 8,158 7,490 6,792 17 Bank premises 553 552 552 553 553 553 552 553 Other assets 18 Denominated in foreign currencies2 3,637 3,723 3,725 3,726 3,729 3,617 3,721 3,763 19 All other3 4,067 3,858 4,204 4,844 4,974 3,366 4,084 4,987 20 Total assets 193,634 193,435 197,799 193,324 190,549 191,118 199,494 187,521 LIABILITIES 21 Federal Reserve notes 147,913 149,171 150,750 150,230 149,637 148,241 148,172 149,676 Deposits 22 To depository institutions 18,767 20,881 23,808 24,281 23,267 25,702 20,697 20,227 23 U.S. Treasury—General account 14,253 9,694 7,151 5,168 4,624 4,189 16,557 4,841 24 Foreign—Official accounts 205 194 182 257 246 248 297 339 25 Other 400 386 664 561 643 447 421 705 26 Total deposits 33,625 31,155 31,805 30,267 28,780 30,586 37,972 26,112 27 Deferred availability cash items 6,561 7,584 9,749 7,349 6,760 7,179 7,550 6,042 28 Other liabilities and accrued dividends4 2,346 2,248 2,265 2,331 2,193 2,056 2,466 2,270 29 Total liabilities 190,445 190,158 194,569 190,177 187,370 188,062 196,160 184,100 CAPITAL ACCOUNTS 30 Capital paid in 1,447 1,447 1,448 1,448 1,450 1,434 1,446 1,447 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,359 32 Other capital accounts 383 471 423 340 370 263 529 615 33 Total liabilities and capital accounts 193,634 193,435 197,799 193,324 190,549 191,118 199,494 187,521 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 110,279 109,818 109,626 112,885 110,108 108,053 109,117 112,181 Federal Reserve note statement 35 Federal Reserve notes outstanding 173,014 173,625 174,326 175,407 175,863 171,346 173,093 175,946 36 LESS: Held by bank5 25,101 24,454 23,576 25,177 26,226 23,105 24,921 26,270 37 Federal Reserve notes, net 147,913 149,171 150,750 150,230 149,637 148,241 148,172 149,676 Collateral held against notes net: 38 Gold certificate account 11,128 11,128 11,128 11,128 11,126 11,128 11,128 11,126 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 132,167 133,425 135,004 134,484 133,893 132,495 132,426 133,932 42 Total collateral 147,913 149,171 150,750 150,230 149,637 148,241 148,172 149,676 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 A11 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 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Aug. 31 Sept. 30 Oct. 31 1 Loans—Total 2,359 1,385 2,396 1,386 1,505 3,633 1,625 387 2 Within 15 days 2,321 1,334 2,274 1,359 1,479 3,583 1,553 317 3 16 days to 90 days 38 51 122 27 26 50 72 34 4 91 days to 1 year 0 0 0 0 0 0 0 36 5 Acceptances—Total 89 20 0 117 0 209 1,122 0 6 Within 15 days 89 20 0 117 0 209 1,122 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 149,370 149,528 148,599 148,461 147,272 146,489 155,423 146,0% 10 Within 15 days1 10,341 9,052 5,620 6,222 5,322 9,715 13,007 5,528 11 16 days to 90 days 29,913 32,506 33,259 32,319 32,030 28,657 33,499 30,965 12 91 days to 1 year 44,974 43,978 45,728 45,928 45,928 43,975 44,925 45,505 13 Over 1 year to 5 years 32,863 32,713 32,713 32,987 32,987 32,863 32,713 33,093 14 Over 5 years to 10 years 13,690 13,690 13,690 13,416 13,416 13,690 13,690 13,416 15 Over 10 years 17,589 17,589 17,589 17,589 17,589 17,589 17,589 17,589 16 Federal agency obligations—Total 9,071 8,984 8,734 8,980 8,731 8,932 9,288 8,731 17 Within 15 days' 508 389 200 543 134 336 725 133 18 16 days to 90 days 648 673 626 529 586 713 648 638 19 91 days to 1 year 1,897 1,905 1,954 1,959 1,910 1,832 1,897 1,859 20 Over 1 year to 5 years 4,331 4,330 4,267 4,262 4,353 4,370 4,331 4,353 21 Over 5 years to 10 years 1,169 1,169 1,169 1,169 1,230 1,163 1,169 1,230 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

A12 Domestic Nonfinancial Statistics • November 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1983 IItteemm 1979 1980 1981 1982 Dec. Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 1 Total reserves2 30.71 32.46 33.75 36.23 36.10 36.80 37.15 37.13 37.61 37.80 37.69' 37.72 2 Nonborrowed reserves 29.24 30.77 33.11 35.60 35.52 36.01 36.14 36.18 35.98 36.35 36.15' 36.28 3 Required reserves 30.38 31.94 33.43 35.73 35.66 36.37 36.68 36.68 37.13 37.29 37.25 37.22 4 Monetary base3 139.3 151.1 158.8 171.1 173.8 176.1 177.3 178.8 180.3 181.1 182.1 183.4 Not seasonally adjusted 5 Total reserves2 31.26 33.4 34.61 36.96 35.97 36.06 36.91 36.64 36.79 37.34 37.06' 37.39 6 Nonborrowed reserves 29.79 31.72 33.98 36.33 35.39 35.26 35.90 35.69 35.15 35.89 35.52' 35.95 7 Required reserves 30.93 32.89 34.29 36.46 35.54 35.62 36.44 36.19 36.31 36.83 36.62 36.89 8 Monetary base3 141.5 154.4 161.9 174.4 171.8 173.6 176.3 177.8 179.6 181.7 181.8 182.9 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 43.91 40.66 41.92 41.85 39.80 38.04 38.65 38.28 38.42 38.95 38.66' 37.92 10 Nonborrowed reserves 42.43 38.97 41.29 41.22 39.22 37.24 37.64 37.33 36.78 37.50 37.12' 36.48 11 Required reserves 43.58 40.15 41.60 41.35 39.36 37.60 38.17 37.83 37.93 38.44 38.21 37.42 12 Monetary base3 156.1 162.5 169.7 179.3 176.0 175.9 178.4 179.8 181.6 183.7 183.8 183.5 1. Reserve aggregates include required reserves of member banks and Edge of$210 million; Jan. 14, 1982, a reduction of $60 million; Feb. 11, 1982 an increase Act corporations and other depository institutions. Discontinuities associated of $170 million; Mar. 4, 1982, an estimated reduction of $2.0 billion; May 13, 1982, with the implementation of the Monetary Control Act, the inclusion of Edge Act an estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140 corporation reserves, and other changes in Regulation D have been removed. million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an 2. Reserve balances with Federal Reserve Banks plus vault cash at institutions estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800 with required reserve balances plus vault cash equal to required reserves at other million; Mar. 3, 1983 an estimated reduction of $1.9 billion; and Sept. 1, 1983, an institutions. estimated reduction of $1.2 billion beginning with the week ended Dec. 23, 1981, 3. Consists of reserve balances and service-related balances and adjustments at reserve aggregates have been reduced by shifts of reservable liabilities to IBFs. Federal Reserve Banks in the current week plus vault cash held two weeks earlier On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks used to satisfy reserve requirements at all depository institutions plus currency and U.S. agencies and branches of foreign banks, it is estimated that required outside the U.S. Treasury, Federal Reserve Banks, the vaults of depository reserves were lowered on average by $60 million to $90 million in Dec. 1981 and institutions, and surplus vault cash at depository institutions. $180 million to $230 million in Jan. 1982, mostly reflecting a reduction in 4. Reserves of depository institutions series reflect actual reserve requirement reservable Eurocurrency transactions. Also, beginning with the week ending Apr. percentages with no adjustments to eliminate the effect of changes in Regulation D 20, 1983, required reserves were reduced an estimated $80 million as a result of including changes associated with the implementation of the Monetary Control the elimination of reserve requirements on nonpersonal time deposits with Act. Includes required reserves of member banks and Edge Act corporations and maturities of 2Vi years or more to less than 3'/2 years. beginning Nov. 13, 1980, other depository institutions. Under the transitional phase-in program of the Monetary Control Act of 1980, the net changes in NOTE. Latest monthly and weekly figures are available from the Board's required reserves of depository institutions have been as follows: Effective H.3(502) statistical release. Back data and estimates of the impact on required Nov. 13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 reserves and changes in reserve requirements are available from the Banking million; Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of Section, Division of Research and Statistics, Board of Governors of the Federal $245 million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1983 1979 1980 1981 1982 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. JJuunnee JJuullyy AAuugg.. SSeepptt.. Seasonally adjusted MEASURES' 1 Ml 389.0 414.1 440.6 478.2 511.7 515.5 516.7 517.1 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 2,114.4' 2,126.3' 2,528.3' 2,145.1 3 M3 1,758.4 1,936.7 2,167.9 2,377.6 2,498.8' 2,510.2' 2,528.5 2.543.4 4 L2 2,131.8 2,343.6 2,622.0 2,896.8 3,059.9' n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 140.3 140.9 141.8 143.0 6 Travelers checks3 3.7 4.1 4.5 4.2 4.7 4.6 4.7 4.7 7 Demand deposits 262.0 266.8 236.4 239.8 244.0 245.8 244.5 243.4 8 Other checkable deposits4 17.0 26.9 76.6 101.3 122.7 124.2 125.8 126.0 9 Savings deposits5 423.1 400.7 344.4 359.3 325.0 323.5 322.1 320.6 10 Small-denomination time deposits6 635.9 731.7 828.6 859.1 722.1 735. 1' 748.0 757.7 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 304.1 305.6' 311.6' 317.9 Not seasonally adjusted MEASURES' 12 Ml 398.8 424.7 452.1 491.0 508.3 514.7 511.6 514.1 13 M2 1,502.1 1,635.0 1,799.6 1,964.5 2,114.lr 2,127.8' 2,129.2 2,136.8 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,495.4' 2,508.1 2,519.3' 2,534.2 15 L2 2,138.9 2,350.8 2,629.7 2,904.7 3,056.2' n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 140.3 142.0 142.1 142.6 17 Travelers checks3 3.5 3.9 4.3 4.0 4.9 5.2 5.1 5.0 18 Demand deposits 270.1 275.2 244.0 247.7 242.1 245.1 241.3 242.1 19 Other checkable deposits4 17.0 27.2 78.4 104.0 121.0 122.5 123.0 124.5 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 56.0 52.7 52.1' 52.7 21 Savings deposits5 420.7 398.3 342.1 356.7 326.3 326.6 321.5 318.2 22 Money market deposit accounts n.a. n.a. n.a. 43.2 367.3 368.4 366.3 366.9 23 Small-denomination time deposits6 633.1 728.3 824.1 853.9 723.9 734.3 746.0 754.8 Money market mutual funds 24 General purpose and broker/dealer 33.4 61.4 150.9 177.8 132.9 131.3 131.3 129.7 25 Institution only 9.5 14.9 36.0 43.1 34.7 34.0 33.9 34.8 26 Large-denomination time deposits7 226.0 262.4 305.9 336.5 301.0 301.9' 310.3' 317.0 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

A14 Domestic Nonfinancial Statistics • November 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 11998822'' Apr. May June July Aug. Sept. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 103,022.3 107,273.3 106,799.4 107,884.4 111,538.1 110,700.7 2 Major New York City banks 25,156.1 33,891.9 37,932.9 46,025.6 46,891.2 46,445.4 46,978.0 48,373.3 46,903.7 3 Other banks 37,601.7 46,966.9 52,981.6 56,996.7 60,382.1 60,354.1 60,906.4 63,164.9 63,796.9 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,202.2 1,371.5 1,342.1 1,390.1 1,679.5 1,495.9 5 Savings deposits4 670.0 672.7 721.4 714.9 743.1 776.2 659.4 706.3 712.7 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 359.7 370.4 367.5 371.5 385.7 384.7 7 Major New York City banks 803.7 1,105.1 1,287.6 1,502.8 1,471.5 1,449.1 1,432.2 1,526.7 1,508.8 8 Other banks 132.2 186.2 211.1 222.9 234.3 233.4 236.5 245.3 248.6 9 ATS-NOW accounts3 9.7 14.0 14.5 13.9 15.2 14.7 15.0 17.9 15.9 10 Savings deposits4 3.6 4.1 4.5 5.1 5.4 5.6 4.8 5.2 5.3 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 100,117.1 103,947.8 113,773.4 105,057.8 115,776.6 111,741.3 12 Major New York City banks 25,243.1 34,032.0 38,001.0 43,678.9 44,942.5 50,643.1 45,601.0 49,788.2 48,276.1 13 Other banks 37,881.3 47,165.9 53,030.9 56,438.1 59,005.4 63,130.4 59,456.8 65,988.3 63,465.2 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,405.3 1,353.1 1,420.7 1,325.3 1,468.9 1,388.3 15 MMDA5 0 0 0 545.8 505.6 714.3 603.3 655.5 641.4 16 Savings deposits4 669.8 672.9 720.0 779.9 722.2 779.3 661.6 694.3 688.9 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 347.9 368.1 393.1 357.6 406.7 387.2 18 Major New York City banks 814.8 1,114.2 1,295.7 1,446.9 1,471.0 1,563.6 1,383.5 1,621.6 1,574.5 19 Other banks 134.8 186.2 211.5 219.1 234.3 245.6 227.9 259.8 246.1 20 ATS-NOW accounts3 9.7 14.0 14.3 15.6 15.3 15.7 14.5 16.0 15.0 21 MMDA5 0 0 0 2.8 2.4 3.3 2.8 3.0 2.9 22 Savings deposits4 3.6 4.1 4.5 5.6 5.2 5.6 4.8 5.1 5.2 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 SMSAs 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 A15 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. June July Aug. Sept. Dec.2 Dec. June July Aug. Sept. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,316.3 1,412.1 1,488.0 1,499.9 1,513.2 1,520.3 1,326.1 1,422.5 1,485.6 1,493.6 1,507.0 1,521.6 2 U.S. Treasury securities 111.0 130.9 171.2 172.9 174.4 176.9 111.4 131.5 171.6 171.6 172.4 176.3 3 Other securities 231.4 239.1 246.2 246.1 247.8 247.1 232.8 240.6 245.9 244.8 247.0 247.1 4 Total loans and leases3 973.9 1,042.0 1,070.6 1,080.9 1,091.0 1,0%. 3 981.8 1,050.4 1,068.0 1,077.2 1,087.5 1,098.2 5 Commercial and industrial loans 358.0 392.4 395.0 399.2 402.7 402.6 360.1 394.7 394.4 397.9 400.2 402.2 6 Real estate loans 285.7 303.2 317.0 319.4 322.5 326.2 286.8 304.1 315.4 318.4 322.2 326.9 7 Loans to individuals 185.1 191.8 199.8 203.1 205.5 207.7 186.4 193.1 199.0 202.1 205.7 209.1 8 Security loans 21.9 24.7 22.3 23.7 22.9 23.7 22.7 25.5 23.5 23.1 23.6 23.4 9 Loans to nonbank financial institutions 30.2 31.1 31.1 31.2 30.9 30.8 31.2 32.1 30.7 30.6 30.7 30.9 10 Agricultural loans 33.0 36.1 36.7 36.8 37.2 37.6 33.0 36.1 36.9 37.2 37.6 38.2 11 Lease financing receivables.... 12.7 13.1 13.0 12.9 12.9 12.9 12.7 13.1 13.0 12.9 12.9 12.9 12 All other loans 47.2 49.7 55.7 54.6 56.5 54.8 49.2 51.7 55.2 55.0 54.6 54.6 MEMO: 13 Total loans and securities plus loans sold3'4 1,319.1 1,415.0 1,490.7 1,502.6 1,515.7 1,522.8 1,328.9 1,425.4 1,488.3 1,496.3 1,509.6 1,524.2 14 Total loans plus loans sold3'4 .... 976.7 1,045.0 1,073.3 1,083.5 1,093.5 1,098.9 984.7 1,053.3 1,070.8 1,079.9 1,090.1 1,100.8 15 Total loans sold to affiliates3-4.... 2.8 2.9 2.7 2.7 2.6 2.6 2.8 2.9 2.7 2.7 2.6 2.6 16 Commercial and industrial loans plus loans sold4 360.2 394.6 397.2 401.3 404.5' 404.6 362.3 3%.9 3%.5 400.0 402.2 404.2 17 Commercial and industrial loans sold4 2.2 2.3 2.1 2.1 2.0 2.0 2.2 2.3 2.1 2.1 2.0 2.0 18 Acceptances held 8.9 8.5 8.0 8.5 8.5 8.3 9.8 9.5 8.1 8.4 8.2 8.3 19 Other commercial and industrial loans 349.1 383.8 387.0 390.7 394.1 394.3 350.3 385.2 386.3 389.5 392.0 393.9 20 To U.S. addressees3 334.9 373.5 373.7 378.2 381.5' 381.8 334.3 372.7 374.2 377.4 379.8 381.6 21 To non-U.S. addressees 14.2 10.3 13.3 12.5 12.5 12.5 16.1 12.4 12.1 12.1 12.2 12.3 22 Loans to foreign banks 19.0 13.5 15.0 14.4 14.5 14.3 20.0 14.5 14.5 14.0 14.0 14.7 1. Includes domestically chartered banks; U.S. branches and agencies of 4. Loans sold are those sold outright to a bank's own foreign branches, foreign banks, New York investment companies majority owned by foreign nonconsolidated nonbank affiliates of the bank, the bank's holding company (if banks, and Edge Act corporations owned by domestically chartered and foreign not a bank), and nonconsolidated nonbank subsidiaries of the holding company. banks. 5. United States includes the 50 states and the District of Columbia. 2. Beginning December 1981, shifts of foreign loans and securities from U.S. banking offices to international banking facilities (IBFs) reduced the levels of NOTE. Data are prorated averages of Wednesday estimates for domestically several items. Seasonally adjusted data that include adjustments for the amounts chartered banks, based on weekly reports of a sample of domestically chartered shifted from domestic offices to IBFs are available in the Board's G.7 (407) banks and quarterly reports of all domestically chartered banks. For foreignstatistical release (available from Publications Services, Board of Governors of related institutions, data are averages of month-end estimates based on weekly the Federal Reserve System, Washington, D.C. 20551). reports from large agencies and branches and quarterly reports from all agencies, 3. Excludes loans to commercial banks in the United States. branches, investment companies, and Edge Act corporations engaged in banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • November 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1981 1982 1983 source Dec. Oct. Nov. Dec. Jan.' Feb.' Mar.' Apr. May June July' Aug.' Sept. Total nondeposit funds 1 Seasonally adjusted2 96.3' si^ 87.8' 83.C 73.7 76.7 76.0 80.3' 90^ 88.3' 76.3 81.6 83.2 2 Not seasonally adjusted 98.1' 84.0' 90.<y 84.6' 75.2 77.7 76.8 79 .C 90.5' 90.0' 78.5 85.9 86.0 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8' 126.7' 129.7' 128^ 132.4 135.3 135.4 139.9^ 145.9' 140.7' 132.7 130.9 132.2 4 Not seasonally adjusted 113.5' 129.1' 131.9' 129.6' 133.9 136.3 136.2 138.5' 145.5' 142.4' 134.8 135.2 135.0 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1' -47.9 -44.8 -47.9' -61.6 -61.5 -62.3 -62.4' -57.7' -55.1 -58.9 -51.8 -51.4 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.8 2.9 2.9 3.0 3.0 3.0 3.0 2.8 2.7 2.7 2.6 2.6 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4' -40.3' -38.3 -39.5' -49.9 -50.4 -52.7 -52.6 -48.6' -49.1' -50.8 -45.2 -46.2 8 Gross due from balances 54.9 69.8 69.9 72.2' 79.2 78.9 79.7 80.3' 76.3 75.8 77.4 73.6 74.7 9 Gross due to balances 32.4 29.4 31.5' 32.6' 29.2 28.4 26.8 27.6' 27.6 26.6 26.5 28.3 28.3 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -7.4' -6.4 -8.2' -11.6 -11.0 -9.4 -9.7' -9.0' -5.9 -7.9 -6.5 -5.1 11 Gross due from balances 48.1 53.9 53.V 54^ 57.0 55.5 56.1 55.9 55.8' 53.9 55.2 53.5 53.5 12 Gross due to balances 52.4 46.4 47.1 46.6 45.3 44.4 46.6 46.1 46.7 47^ 47.2 47.0 48.3 Security RP borrowings 13 Seasonally adjusted" 59.0 69.0 71.5 71.0 72.2 74.3 74.7 79.3 84.6 81.4 75.6 74.2 76.0 14 Not seasonally adjusted 59.2 69.8 72.1 71.1 72.2 73.7 73.9 76.3 82.6 81.5 76.1 76.9 77.2 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 14.4 10.6 11.9 15.7 8.8 12.5 13.5 11.3 13.0 24.0 20.6 16.5 16 Not seasonally adjusted 11.1 16.4 7.8 10.8 16.3 10.2 13.2 14.2 12.5 13.2 21.8 16.4 18.0 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4' 363.5' 360.C 349.6' 321.4 307.2 300.0 296.6 287.2 287.0 284.9 284.2 283.2 18 Not seasonally adjusted 330.4 364.9 361.7 353.9 325.4 310.5 300.7 293.0 285.0 283.5 281.3 283.9 283.9 1. Commercial banks are those in the 50 states and the District of Columbia banks, term federal funds, overdrawn due from bank balances, loan RPs, and with national or state charters plus agencies and branches of foreign banks, New participations in pooled loans. Includes averages of daily figures for member York investment companies majority owned by foreign banks, and Edge Act banks and averages of current and previous month-end data for foreign-related corporations owned by domestically chartered and foreign banks. institutions. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 4. Loans initially booked by the bank and later sold to affiliates that are still nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. held by affiliates. Averages of Wednesday data. Includes averages of Wednesday data for domestically chartered banks and 5. Averages of daily figures for member and nonmember banks. averages of current and previous month-end data for foreign-related institutions. 6. Averages of daily data. 3. Other borrowings are borrowings on any instrument, such as a promissory 7. Based on daily average data reported by 122 large banks. note or due bill, given for the purpose of borrowing money for the banking 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at business. This includes borrowings from Federal Reserve Banks and from foreign commercial banks. Averages of daily data. 9. Averages of Wednesday figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking Institutions A17 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1982 1983 Dec.' Jan/ Feb/ Mar/ Apr/ May' June' July' Aug.' Sept.' Oct. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,370.3 1,370.8 1,373.7 1,392.2 1,403.8 1,411.9 1,435.1 1,437.4 1,457.0 1,466.1 1,483.0 2 Loans, excluding interbank 1,000.7 993.3 991.4 1,001.7 1,005.1 1,007.5 1,025.6 1,029.1 1,043.4 1,049.7 1,060.3 3 Commercial and industrial 356.7 355.1 355.7 358.0 357.9 356.7 360.1 361.1 363.0 364.0 367.0 4 Other 644.0 638.2 635.8 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 5 U.S. Treasury securities 129.0 136.0 141.4 150.6 155.5 160.9 166.0 165.1 167.5 171.2 176.8 6 Other securities 240.5 241.6 240.8 239.9 243.3 243.5 243.5 243.3 246.1 245.2 245.9 7 Cash assets, total 184.4 167.8 184.7 168.9 170.1 164.5 176.9 168.7 176.9 160.0 164.0 8 Currency and coin 23.0 20.4 20.3 19.9 20.4 20.3 21.3 20.7 21.0 20.8 20.5 9 Reserves with Federal Reserve Banks 25.4 23.9 25.3 20.5 23.9 22.4 18.8 20.6 22.5 15.4 19.7 10 Balances with depository institutions . 67.6 67.7 71.6 67.1 66.1 65.6 69.7 67.1 69.0 66.7 67.1 11 Cash items in process of collection ... 68.4 55.9 67.5 61.5 59.6 56.3 67.1 60.3 64.4 56.9 56.6 12 Other assets2 265.3 260.1 263.6 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 13 Total assets/total liabilities and capital ... 1,820.0 1,798.7 1,822.0 1,818.9 1,826.3 1,824.8 1,865.2 1,860.6 1,891.0 1,878.4 1,900.0 14 Deposits 1,361.8 1,340.6 1,368.3 1,374.2 1,368.0 1,370.8 1,402.7 1,396.5 1,420.1 1,408.1 1,419.5 15 Demand 363.9 324.0 337.9 333.4 329.2 324.5 344.4 334.2 344.7 328.1 331.3 16 Savings 296.4 361.5 395.2 419.2 426.9 440.2 445.3 447.5 449.0 448.8 451.5 17 Time 701.5 655.1 635.2 621.6 611.9 606.1 613.1 614.8 626.4 631.2 636.8 18 Borrowings 215.1 221.6 218.0 211.3 224.0 214.1 221.2 217.5 217.2 217.8 226.8 19 Other liabilities 109.2 106.4 106.0 103.5 102.3 104.7 104.3 105.5 107.6 107.1 106.5 20 Residual (assets less liabilities) 133.8 130.1 129.6 130.0 132.0 135.1 137.0 141.0 146.1 145.4 147.2 MEMO: 21 U.S. Treasury note balances included in borrowing 10.7 17.1 7.0 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 22 Number of banks 14,787 14,780 14,812 14,819 14,823 14,817 14,826 14,785 14,795 14,804 14,800 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1.429.7 1,427.5 1,429.8 1,451.3 1,460.8 1,467.6 1,491.5 1,494.1 1,515.4 1.525.4 1,541.8 24 Loans, excluding interbank 1.054.8 1,044.8 1,042.3 1,054.5 1,055.7 1,056.4 1,075.2 1,078.8 1,094.9 1.102.5 1,112.2 25 Commercial and industrial 395.3 392.4 392.3 395.9 393.5 391.7 395.3 397.7 400.6 402.7 405.3 26 Other 659.5 652.4 650.0 658.6 662.2 664.7 679.9 681.2 694.3 699.8 706.8 27 U.S. Treasury securities 132.8 139.5 145.1 155.3 160.2 166.1 171.3 170.3 172.7 176.1 182.0 28 Other securities 242.1 243.2 242.4 241.5 244.9 245.2 245.1 245.0 247.8 246.9 247.7 29 Cash assets, total 200.7 183.7 200.5 185.5 186.3 180.3 193.5 185.2 193.3 174.7 178.4 30 Currency and coin 23.0 20.4 20.3 19.9 20.4 20.3 21.3 20.7 21.1 20.9 20.5 31 Reserves with Federal Reserve Banks 26.8 25.3 26.7 22.0 25.4 23.8 20.0 21.9 24.0 16.6 20.8 32 Balances with depository institutions . 81.4 81.1 84.9 81.0 79.8 78.9 84.0 81.2 82.8 79.3 79.5 33 Cash items in process of collection ... 69.4 56.9 68.6 62.6 60.7 57.3 68.2 61.4 65.4 58.0 57.6 34 Other assets2 341.7 333.2 330.2 325.4 317.8 309.5 318.1 318.7 324.6 320.9 318.8 35 Total assets/total liabilities and capital... 1,972.1 1,944.4 1,960.4 1,962.2 1,964.9 1,957.4 2,003.2 1,998.0 2,033.3 2,021.0 2,039.1 36 Deposits 1,409.7 1,385.4 1,412.6 1,419.5 1,411.0 1,413.1 1,443.8 1,438.1 1,461.4 1,448.9 1,459.0 37 Demand 376.2 335.9 350.2 345.7 341.1 336.4 356.4 346.4 356.6 340.0 343.2 38 Savings 296.7 361.9 395.6 419.7 427.3 440.7 445.7 448.0 449.5 449.3 452.0 39 Time 736.7 687.7 666.8 654.1 642.6 636.0 641.6 643.8 655.3 659.5 663.8 40 Borrowings 278.3 283.5 276.0 269.9 281.3 269.5 278.2 277.9 280.5 282.6 289.6 41 Other liabilities 148.4 143.5 140.4 141.1 138.6 137.9 142.3 139.1 143.4 142.3 141.5 42 Residual (assets less liabilities) 135.7 132.0 131.5 131.9 133.9 137.0 138.9 142.9 148.0 147.3 149.1 MEMO: 43 U.S. Treasury note balances included in borrowing 10.7 17.1 7.0 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 44 Number of banks 15,329 15,332 15,366 15,376 15,390 15,385 15,396 15,359 15,370 15,382 15,383 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

A18 Domestic Nonfinancial Statistics • November 1983 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and LiabilitiesA Millions of dollars, Wednesday figures 1983 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5p Oct. 12p Oct. 19P Oct. 26p 1 Cash items in process of collection 50,381 52,222 48,882 46,322 44,575 50,782 56,402 48,304 44,147 2 Demand deposits due from banks in the United States.. 7,820 7,780 7,509 7,727 7,362 7,656 8,176 7,348 7,151 3 All other cash and due from depository institutions 35,447 36,491 34,810 33,857 29,462 30,605 34,006 33,928 32,295 4 Total loans and securities 670,863 671,386 668,254 667,590 669,390 685,504 685,466 683,524 679,952 Securities 5 U.S. Treasury securities 51,401 52,674 53,485 52,101 52,103 55,420 54,056 54,941 56,029 6 Trading account 8,384 9,211 9,928 8,586 8,296 9,414 7,808 8,458 9,296 7 Investment account, by maturity 43,017 43,463 43,557 43,515 43,807 46,007 46,248 46,483 46,733 8 One year or less 14,023 14,302 14,074 13,895 14,439 14,246 14,456 14,817 14,684 9 Over one through five years 26,530 26,625 26,760 26,913 26,594 28,875 28,726 28,600 28,828 10 Over five years 2,464 2,536 2,724 2,708 2,775 2,886 3,066 3,066 3,221 11 Other securities 84,421 84,732 84,079 84,429 84,178 83,886 82,904 84,365 83,860 12 Trading account 6,652 6,962 6,420 6,581 6,454 6,298 5,392 6,609 6,123 13 Investment account 77,769 77,770 77,659 77,848 77,723 77,587 77,511 77,757 77,736 14 U.S. government agencies 16,389 16,438 16,271 16,317 16,132 16,065 16,020 16,054 15,952 15 States and political subdivisions, by maturity 57,756 57,678 57,731 57,889 57,948 57,922 57,868 58,030 58,126 16 One year or less 7,640 7,707 7,660 7,667 7,650 7,731 7,685 7,803 7,809 17 Over one year 50,116 49,970 50,071 50,222 50,298 50,192 50,183 50,227 50,317 18 Other bonds, corporate stocks and securities 3,624 3,654 3,656 3,641 3,643 3,600 3,624 3,672 3,658 Loans 19 Federal funds sold1 41,216 40,065 38,363 36,092 39,200 47,647 49,066 45,425 41,452 20 To commercial banks 30,541 29,173 28,266 26,199 28,861 36,400 38,241 34,578 29,380 21 To nonbank brokers and dealers in securities 7,730 7,683 7,376 7,027 7,672 8,393 7,797 7,740 9,062 22 To others 2,946 3,208 2,721 2,866 2,666 2,855 3,028 3,107 3,010 23 Other loans, gross 507,295 507,476 505,893 508,552 507,418 511,999 512,929 512,283 512,158 24 Commercial and industrial 214,064 214,100 213,532 214,630 213,346 215,038 215,907 215,449 215,034 25 Bankers acceptances and commercial paper 3,955 4,048 4,218 3,916 3,653 3,728 4,573 4,556 4,396 26 All other 210,109 210,052 209,314 210,714 209,694 211,310 211,334 210,893 210,638 27 U.S. addressees 203,199 203,179 202,465 203,796 202,767 204,151 204,133 203,743 203,416 28 Non-U.S. addressees 6,909 6,873 6,849 6,918 6,927 7,158 7,201 7,151 7,222 29 Real estate 137,078 137,224 137,592 137,929 138,111 138,169 138,515 139,060 139,300 30 To individuals for personal expenditures 79,033 79,093 79,458 79,842 80,291 80,543 80,952 81,096 81,520 To financial institutions 31 Commercial banks in the United States 7,499 7,395 6,732 7,151 7,174 7,411 7,361 7,779 7,564 32 Banks in foreign countries 8,312 8,650 8,442 8,247 8,492 8,920 8,982 8,647 8,535 33 Sales finance, personal finance companies, etc 9,287 9,391 9,155 9,275 9,352 9,399 9,325 9,512 9,126 34 Other financial institutions 15,954 16,199 16,340 16,245 16,178 16,242 16,230 15,830 15,220 35 To nonbank brokers and dealers in securities 9,421 8,911 7,788 9,231 8,290 9,680 9,177 8,551 9,397 36 To others for purchasing and carrying securities2 3,182 3,135 3,140 3,190 3,211 3,255 3,289 3,268 3,222 37 To finance agricultural production 7,124 7,116 7,125 7,186 7,161 7,157 7,112 7,088 7,311 38 All other 16,342 16,262 16,589 15,627 15,813 16,186 16,080 16,003 15,930 39 LESS: Unearned income 5,034 5,040 5,054 5,071 5,048 5,006 5,024 5,008 5,008 40 Loan loss reserve 8,436 8,521 8,512 8,512 8,461 8,441 8,465 8,482 8,540 41 Other loans, net 493,824 493,915 492,327 494,968 493,909 498,551 499,440 498,792 498,610 42 Lease financing receivables 10,948 10,957 10,916 10,919 10,927 10,962 10,944 10,957 10,968 43 All other assets 141,039 141,418 145,287 143,228 142,472 147,158 142,483 141,093 140,511 44 Total assets 916,498 920,255 915,656 909,643 904,188 932,667 937,478 925,155 915,024 Deposits 45 Demand deposits 177,353 181,364 179,118 170,580 167,689 181,696 188,681 174,885 168,996 46 Mutual savings banks 711 766 553 633 557 735 770 808 616 47 Individuals, partnerships, and corporations 134,781 137,965 137,874 130,820 128,721 136,996 143,995 133,582 129,802 48 States and political subdivisions 4,931 4,797 4,735 5,098 4,693 4,917 4,540 4,735 4,443 49 U.S. government 995 1,380 2,600 1,847 1,610 3,314 1,560 2,759 1,796 50 Commercial banks in the United States 20,051 21,231 18,712 18,569 17,960 20,516 21,346 18,733 18,543 51 Banks in foreign countries 5,971 6,532 6,578 5,3% 5,660 5,799 6,776 5,731 5,780 52 Foreign governments and official institutions 1,361 1,312 970 894 732 979 941 809 832 53 Certified and officers' checks 8,552 7,380 7,098 7,321 7,755 8,440 8,752 7,728 7,183 54 Time and savings deposits 419,019 420,218 418,706 417,299 417,907 419,273 419,677 419,856 420,288 55 Savings 172,768 174,651 174,050 172,634 172,470 174,920 173,528 172,346 171,623 56 Individuals and nonprofit organizations 153,814 155,484 154,926 153,487 153,201 155,252 153,403 152,137 151,257 57 Partnerships and corporations operated for profit .. 17,786 17,968 17,906 17,945 18,086 18,344 18,830 18,946 19,157 58 Domestic governmental units 1,124 1,156 1,176 1,160 1,145 1,280 1,258 1,224 1,170 59 All other 45 42 43 42 38 44 37 38 39 60 Time 246,250 245,567 244,655 244,665 245,436 244,353 246,149 247,511 248,665 61 Individuals, partnerships, and corporations 218,694 217,983 217,037 217,106 218,041 217,818 219,656 220,998 221,932 62 States and political subdivisions 17,065 17,058 17,062 17,199 17,183 16,522 16,545 16,638 16,785 63 U.S. government 320 310 307 302 270 264 268 269 236 64 Commercial banks in the United States 6,815 6,951 6,945 6,782 6,802 6,683 6,567 66,,553388 66,,666688 65 Foreign governments, official institutions, and banks 3,355 3,264 3,304 3,275 3,140 3,065 3,113 33,,006677 33,,004422 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 2,409 446 1,460 5,638 1,105 466 1,393 1,021 1,099 67 Treasury tax-and-loan notes 11,162 6,730 7,806 15,312 15,225 15,533 15,163 15,916 15,726 68 All other liabilities for borrowed money3 156,943 164,009 160,691 153,281 154,188 168,695 166,810 165,994 160,993 69 Other liabilities and subordinated notes and debentures . 88,235 85,983 86,314 86,241 86,861 85,193 83,937 85,873 86,376 70 Total liabilities 855,121 858,749 854,096 848,350 842,974 870,857 875,662 863,546 853,478 71 Residual (total assets minus total liabilities)4 61,377 61,505 61,561 61,293 61,214 61,810 61,816 61,609 61,545 • All the data published in this table in the BULLETIN for October 1983 should 3. Includes federal funds purchased and securities sold under agreement to have appeared in table 1.28. See also the notes to tables 1.27 and 1.28. repurchase; for information on these liabilities at banks with assets of $1 billion or 1. Includes securities purchased under agreements to resell. more on Dec. 31, 1977, see table 1.13. 2. Other than financial institutions and brokers and dealers. 4. This is 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 A19 1.27 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billlion or More on December 31, 1977, Assets and Liabilities A Millions of dollars, Wednesday figures Account Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 1 Cash items in process of collection 47,464 48,781 45,706 43,382 41,994 47,826 52,776 45,476 41,534 2 Demand deposits due from banks in the United States.. 7,234 7,130 6,870 7,064 6,770 7,042 7,582 6,763 6,606 3 All other cash and due from depository institutions .... 32,437 33,401 31,888 30,668 26,419 27,865 31,065 31,013 29,319 4 Total loans and securities 623,028 623,113 619,904 619,550 621,102 635,053 635,229 633,826 630,253 Securities 5 U.S. Treasury securities 46,618 47,798 48,587 47,272 47,162 50,468 49,050 49,952 51,030 6 Trading account 8,302 9,047 9,765 8,421 8,144 9,219 7,649 8,341 9,168 7 Investment account, by maturity 38,316 38,751 38,822 38,851 39,018 41,249 41,400 41,610 41,862 8 One year or less 12,345 12,614 12,343 12,219 12,766 12,562 12,713 13,078 12,958 9 Over one through five years 23,789 23,848 24,002 24,171 23,721 26,046 25,865 25,708 25,928 10 Over five years 2,182 2,289 2,476 2,462 2,531 2,641 2,822 2,824 2,976 11 Other securities 76,683 76,928 76,305 76,533 76,368 76,145 75,158 76,526 75,%5 12 Trading account 6,522 6,842 6,296 6,395 6,309 6,171 5,281 6,435 5,925 13 Investment account 70,160 70,086 70,008 70,138 70,058 69,974 69,877 70,091 70,040 14 U.S. government agencies 14,781 14,770 14,636 14,637 14,470 14,439 14,386 14,384 14,261 15 States and political subdivisions, by maturity 52,150 52,054 52,108 52,246 52,325 52,317 52,250 52,412 52,481 16 One year or less 6,956 7,027 6,979 6,988 7,005 7,078 7,028 7,150 7,149 17 Over one year 45,194 45,027 45,130 45,258 45,320 45,240 45,222 45,263 45,333 18 Other bonds, corporate stocks and securities 3,230 3,262 3,264 3,254 3,264 3,217 3,241 3,294 3,297 Loans 19 Federal funds sold1 37,218 35,713 33,873 32,288 35,373 41,751 43,454 40,573 36,632 20 To commercial banks 27,045 25,312 24,362 23,006 25,727 31,305 33,304 30,371 25,246 21 To nonbank brokers and dealers in securities 7,253 7,219 6,821 6,445 7,008 7,627 7,154 7,123 8,410 22 To others 2,919 3,182 2,689 2,837 2,639 2,818 2,9% 3,078 2,977 23 Other loans, gross 474,951 475,205 473,672 476,004 474,677 479,114 480,033 479,239 479,147 24 Commercial and industrial 202,138 202,226 201,781 202,747 201,425 203,001 203,782 203,281 202,881 25 Bankers acceptances and commercial paper 3,729 3,849 4,032 3,723 3,466 3,528 4,353 4,341 4,185 26 AU other 198,409 198,377 197,749 199,024 197,959 199,473 199,429 198,940 198,695 27 U.S. addressees 191,622 191,627 191,021 192,230 191,152 192,435 192,349 191,910 191,592 28 Non-U.S. addressees 6,787 6,751 6,728 6,795 6,807 7,038 7,080 7,031 7,104 29 Real estate 128,503 128,571 128,876 129,170 129,286 129,360 129,728 130,155 130,400 30 To individuals for personal expenditures 70,086 70,133 70,457 70,806 71,201 71,438 71,808 7711,,993300 7722,,228833 To financial institutions 31 Commercial banks in the United States 7,025 6,928 6,320 6,657 6,627 6,913 6,880 7,358 7,161 32 Banks in foreign countries 8,225 8,568 8,349 8,168 8,395 8,825 8,889 8,545 8,439 33 Sales finance, personal finance companies, etc 9,066 9,184 8,942 9,064 9,140 9,182 9,110 9,299 8,906 34 Other financial institutions 15,212 15,462 15,5% 15,492 15,444 15,540 15,514 15,118 14,549 35 To nonbank brokers and dealers in securities 9,351 8,842 7,725 9,145 8,198 9,5% 9,089 8,460 9,308 36 To others for purchasing and carrying securities2 2,918 2,865 2,874 2,928 2,937 2,993 3,028 3,006 2,962 37 To finance agricultural production 6,909 6,897 6,908 6,972 6,950 6,942 6,907 6,882 7,107 38 All other 15,519 15,527 15,844 14,856 15,073 15,323 15,299 15,204 15,150 39 LESS: Unearned income 4,445 4,451 4,462 4,478 4,457 4,420 4,434 4,418 4,417 40 Loan loss reserve 7,996 8,080 8,069 8,070 8,021 8,006 8,030 8,045 8,104 41 Other loans, net 462,510 462,673 461,140 463,456 462,199 466,688 467,568 466,776 466,626 42 Lease financing receivables 10,531 10,538 10,495 10,4% 10,503 10,534 10,516 10,528 10,536 43 All other assets 136,654 137,200 141,169 138,974 138,185 142,990 138,419 136,924 136,323 44 Total assets 857,349 860,163 856,033 850,134 844,973 871,311 875,588 864,530 854,572 Deposits 45 Demand deposits 164,642 168,108 166,136 157,973 155,730 168,436 175,099 162,392 156,943 46 Mutual savings banks 682 735 533 609 534 702 731 781 592 47 Individuals, partnerships, and corporations 124,742 127,624 127,686 121,218 119,215 126,668 133,222 123,761 120,125 48 States and political subdivisions 4,394 4,244 4,1% 4,388 4,170 4,381 4,050 4,223 3,962 49 U.S. government 884 1,191 2,162 1,384 1,457 3,041 1,424 2,494 1,654 50 Commercial banks in the United States 18,371 19,388 17,221 17,077 16,491 18,831 19,524 17,204 17,084 51 Banks in foreign countries 5,925 6,486 6,524 5,357 5,612 5,740 6,730 55,,669922 5,738 52 Foreign governments and official institutions 1,358 1,312 %8 889 731 %9 934 880088 830 53 Certified and officers' checks 8,286 7,127 6,846 7,051 7,519 8,105 8,484 7,428 6,956 54 Time and savings deposits 388,512 389,552 388,068 386,6% 387,261 388,378 388,687 388,856 389,071 55 Savings 159,807 161,503 160,874 159,654 159,553 161,722 160,308 159,220 158,431 56 Individuals and nonprofit organizations 142,458 143,942 143,372 142,145 141,936 143,702 141,874 140,714 139,776 57 Partnerships and corporations operated for profit .. 16,291 16,474 16,394 16,417 16,545 16,822 17,267 17,374 17,569 58 Domestic governmental units 998 1,030 1,051 1,036 1,019 1,140 1,116 1,080 1,034 59 All other 59 57 57 57 52 58 52 53 53 60 Time 228,706 228,049 227,194 227,042 227,708 226,656 228,379 229,636 230,640 61 Individuals, partnerships, and corporations 203,078 202,367 201,464 201,331 202,163 202,008 203,7% 205,053 205,837 62 States and political subdivisions 15,369 15,380 15,385 15,557 15,492 14,846 14,845 14,930 15,058 63 U.S. government 247 239 240 237 251 244 248 247 214 64 Commercial banks in the United States 6,656 6,799 6,801 6,641 6,662 6,492 6,377 66,,333388 66,,448888 65 Foreign governments, official institutions, and banks 3,355 3,264 3,304 3,275 3,140 33,,006655 33,,111133 33,,006677 33,,004422 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 2,399 420 1,450 5,576 1,058 466 1,373 1,001 1,090 67 Treasury tax-and-loan notes 10,449 6,333 7,356 14,4% 14,404 14,704 14,344 15,087 14,924 68 All other liabilities for borrowed money3 147,676 154,288 151,164 143,873 144,537 158,364 156,349 155,665 150,608 69 Other liabilities and subordinated notes and debentures . 86,153 83,822 84,158 84,075 84,634 83,076 81,806 83,790 84,315 70 Total liabilities 799,831 802,524 798,332 792,690 787,626 813,424 817,659 806,791 796,951 71 Residual (total assets minus total liabilities)4 57,518 57,639 57,701 57,444 57,347 57,886 57,929 57,739 57,621 • All the data published in this table in the BULLETIN for October 1983 should 3. Includes federal funds purchased and securities sold under agreement to have appeared in table 1.26. See also the notes to tables 1.26 and 1.28. repurchase; for information on these liabilities at banks with assets of $ 1 billion or 1. Includes securities purchased under agreements to resell. more on Dec. 31, 1977, see table 1.13. 2. Other than financial institutions and brokers and dealers. 4. This is 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

A20 Domestic Nonfinancial Statistics • November 1983 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities* Millions of dollars, Wednesday figures 1983 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5" Oct. 12*> Oct. 19p Oct. 2&> 1 Cash items in process of collection 17,099 14,667 14,492 14,584 14,313 15,658 17,163 16,100 13,682 2 Demand deposits due from banks in the United States.. 1,020 1,163 1,105 1,122 1,005 1,032 1,316 1,143 1,105 3 All other cash and due from depository institutions 6,303 8,348 5,565 5,664 3,477 5,446 7,321 7,081 4,266 4 Total loans and securities1 144,843 143,228 142,305 142,336 141,575 145,088 147,112 145,535 145,075 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 8,843 8,905 8,998 8,968 8,975 9,818 9,538 9,552 9,554 8 One year or less 2,396 2,391 2,360 2,343 2,708 2,402 2,479 2,543 2,515 9 Over one through five years 5,986 5,978 5,931 5,929 5,517 6,545 6,172 6,123 6,142 10 Over five years 461 536 708 696 750 872 886 886 897 11 Other securities2 12 Trading account2 13 Investment account 14,833 14,760 14,699 14,695 14,659 14,696 14,710 14,871 14,885 14 U.S. government agencies 1,592 1,578 1,578 1,578 1,500 1,513 1,518 1,515 1,482 15 States and political subdivisions, by maturity 12,435 12,385 12,328 12,338 12,380 12,450 12,448 12,594 12,628 16 One year or less 1,821 1,778 1,702 1,6% 1,684 1,790 1,753 1,889 1,888 17 Over one year 10,614 10,607 10,626 10,642 10,695 10,661 10,695 10,704 10,740 18 Other bonds, corporate stocks and securities 806 796 793 778 780 733 745 762 775 Loans 19 Federal funds sold3 10,672 9,927 9,910 8,654 9,872 9,424 11,739 10,994 11,032 20 To commercial banks 5,467 4,542 5,132 4,537 5,093 4,508 6,517 5,657 4,932 21 To nonbank brokers and dealers in securities 3,670 3,702 3,428 3,057 3,459 3,618 3,665 3,634 4,505 22 To others 1,535 1,683 1,350 1,060 1,320 1,298 1,556 1,703 1,5% 23 Other loans, gross 114,536 113,708 112,786 114,126 112,136 115,158 115,132 114,120 113,642 24 Commercial and industrial 58,029 58,100 57,791 57,934 56,932 57,818 58,174 57,851 57,188 25 Bankers' acceptances and commercial paper 950 1,008 1,069 1,132 1,064 1,126 1,443 1,576 1,499 26 All other 57,080 57,092 56,722 56,802 55,868 56,692 56,731 56,275 55,689 27 U.S. addressees 55,474 55,516 55,166 55,230 54,265 55,083 55,058 54,596 53,955 28 Non-U.S. addressees 1,606 1,576 1,556 1,572 1,602 1,609 1,673 1,679 1,734 29 Real estate 20,131 20,053 20,114 20,248 20,284 20,306 20,398 20,522 20,600 30 To individuals for personal expenditures 12,182 12,233 12,366 12,452 12,494 12,589 12,769 12,797 12,842 To financial institutions 31 Commercial banks in the United States 1,906 1,829 1,614 1,869 1,591 1,743 1,780 1,655 1,554 32 Banks in foreign countries 2,737 2,767 2,524 2,551 2,597 3,112 3,133 2,678 2,662 33 Sales finance, personal finance companies, etc 3,820 3,868 3,729 3,883 3,831 3,857 3,770 3,924 3,628 34 Other financial institutions 4,373 4,421 4,336 4,353 4,385 4,380 4,313 4,275 4,206 35 To nonbank brokers and dealers in securities 6,144 4,969 4,620 5,780 4,729 5,886 5,286 5,003 5,435 36 To others for purchasing and carrying securities4 .... 635 609 577 594 586 591 603 610 599 37 To finance agricultural production 422 428 434 466 452 453 439 436 689 38 All other 4,156 4,431 4,680 3,995 4,253 4,424 4,467 4,369 4,239 39 LESS: Unearned income 1,419 1,433 1,442 1,464 1,453 1,448 1,456 1,449 1,469 40 Loan loss reserve 2,622 2,638 2,647 2,642 2,613 2,561 2,551 2,554 2,570 41 Other loans, net 110,494 109,636 108,697 110,020 108,069 111,149 111,125 110,117 109,603 42 Lease financing receivables 2,074 2,060 2,060 2,057 2,057 2,040 2,038 2,041 2,042 43 All other assets5 59,108 60,318 64,728 61,909 61,872 66,439 61,446 63,332 63,690 44 Total assets 230,447 229,783 230,256 227,674 224,299 235,704 236,3% 235,232 229,860 Deposits 4i Demand deposits 48,048 47,612 46,295 45,076 44,068 47,795 50,473 46,945 44,%8 46 Mutual savings banks 332 343 232 329 240 339 381 446 291 47 Individuals, partnerships, and corporations 32,065 32,463 31,764 30,717 29,896 31,825 34,181 31,784 30,340 48 States and political subdivisions 586 660 580 666 629 908 666 786 617 49 U.S. government 172 324 684 363 446 722 310 632 461 50 Commercial banks in the United States 5,320 4,446 3,766 4,483 3,988 4,842 4,320 4,407 4,628 51 Banks in foreign countries 4,654 5,121 5,264 4,132 4,428 4,490 5,389 4,515 4,518 52 Foreign governments and official institutions 1,117 1,050 752 719 518 770 742 603 586 53 Certified and officers' checks 3,802 3,203 3,253 3,667 3,923 3,900 4,484 3,773 3,526 54 Time and savings deposits 73,285 73,262 73,158 72,304 72,359 72,504 73,103 73,378 73,394 55 Savings 28,872 29,230 29,323 29,289 29,417 28,646 27,570 27,028 26,816 56 Individuals and nonprofit organizations 26,214 26,504 26,586 26,539 26,638 25,913 24,636 24,066 23,867 57 Partnerships and corporations operated for profit .. 2,448 2,499 2,499 2,532 2,544 2,456 2,671 2,725 2,732 58 Domestic governmental units 171 192 198 179 201 236 230 202 183 59 All other 39 35 40 38 34 40 33 34 33 60 Time 44,413 44,032 43,835 43,016 42,942 43,859 45,534 46,350 46,578 61 Individuals, partnerships, and corporations 38,262 37,948 37,841 37,132 37,023 38,146 39,772 40,621 40,826 62 States and political subdivisions 2,0% 2,052 2,010 1,983 2,003 1,939 1,9% 2,029 2,105 63 U.S. government 24 24 22 22 22 22 21 21 18 64 Commercial banks in the United States 2,584 2,632 2,593 2,529 2,551 2,457 2,415 2,386 2,362 65 Foreign governments, official institutions, and banks 1,447 1,376 1,368 1,348 1,343 1,295 1,330 1,294 1,268 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,050 1,205 3,350 230 1,225 725 1,090 67 Treasury tax-and-loan notes 2,790 1,415 2,186 4,035 4,034 4,036 3,797 4,034 4,035 68 All other liabilities for borrowed money6 49,473 53,978 53,539 48,012 48,822 56,319 52,576 54,457 51,414 69 Other liabilities and subordinated notes and debentures . 36,022 33,645 33,998 35,200 35,429 34,858 35,197 35,734 35,060 70 Total liabilities 210,668 209,912 210,381 207,976 204,713 215,743 216,372 215,274 209,961 71 Residual (total assets minus total liabilities)7 19,779 19,872 19,874 19,698 19,586 19,961 20,024 19,958 19,900 • All the data published in this table in the BULLETIN for October 1983 should 4. Other than financial institutions and brokers and dealers. have appeared in table 1.27. See also the notes to tables 1.26 and 1.27. 5. Includes trading account securities. 1. Excludes trading account securities. 6. Includes federal funds purchased and securities sold under agreements to 2. Not available due to confidentiality. repurchase. 3. Includes securities purchased under agreements to resell. 7. Not a measure of equity capital for use in capital adequacy analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1983 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5p Oct. 12? Oct. 19p Oct. 26p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 646,294 648,379 646,823 647,824 646,864 655,142 653,353 654,657 656,556 2 Total loans (gross) adjusted1 510,472 510,973 509,259 511,294 510,582 515,836 516,394 515,351 516,667 3 Demand deposits adjusted2 105,926 106,531 108,925 103,842 103,543 107,084 109,372 105,088 104,509 4 Time deposits in accounts of $100,000 or more 145,492 144,550 143,316 143,018 143,732 140,540 140,014 139,922 140,227 5 Negotiable CDs 95,127 94,073 92,634 92,335 93,386 89,974 88,857 87,931 87,962 6 Other time deposits 50,366 50,477 50,682 50,683 50,345 50,566 51,158 51,991 52,265 7 Loans sold outright to affiliates3 2,529 2,588 2,617 2,492 2,535 2,506 2,553 2,530 2,576 8 Commercial and industrial 1,993 2,020 2,019 1,896 1,940 1,915 1,982 1,968 1,981 9 Other 536 568 598 596 595 591 571 562 596 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 601,399 603,404 601,754 602,435 601,226 609,260 607,510 608,559 610,368 U Total loans (gross) adjusted1 478,098 478,677 476,862 478,630 477,696 482,646 483,302 482,082 483,373 12 Demand deposits adjusted2 97,922 98,747 101,047 96,130 95,788 98,739 101,375 97,219 96,671 13 Time deposits in accounts of $100,000 or more 136,932 136,022 134,889 134,444 135,076 131,942 131,397 131,211 131,428 14 Negotiable CDs 90,352 89,360 88,033 87,624 88,538 85,192 84,068 83,081 83,029 15 Other time deposits 46,580 46,662 46,855 46,820 46,538 46,750 47,329 48,130 48,399 16 Loans sold outright to affiliates3 2,480 2,539 2,568 2,444 2,484 2,458 2,453 2,430 2,526 17 Commercial and industrial 1,949 1,976 1,975 1,852 1,894 1,872 1,931 1,917 1,944 18 Other 530 563 593 591 591 586 522 513 582 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1'4 141,511 140,928 139,648 140,036 138,957 142,846 142,822 142,225 142,629 20 Total loans (gross) adjusted1 117,835 117,263 115,950 116,374 115,323 118,332 118,574 117,802 118,189 21 Demand deposits adjusted2 25,457 28,175 27,353 25,645 25,321 26,573 28,680 25,807 26,197 22 Time deposits in accounts of $100,000 or more 33,144 32,695 32,417 31,634 31,702 30,702 30,931 30,977 30,881 23 Negotiable CDs 22,468 22,119 21,766 21,020 21,054 19,478 19,182 18,781 18,499 24 Other time deposits 10,676 10,576 10,651 10,614 10,648 11,224 11,750 12,196 12,382 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

A22 Domestic Nonfinancial Statistics • November 1983 1.30 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5p Oct. 12P Oct. 19 p Oct. 26p 1 Cash and due from depository institutions. 7,323 6,827 6,483 6,476 6,121 6,333 6,710 6,060 5,951 2 Total loans and securities 42,942 42,416 42,337 43,338 44,846 43,262 43,103 42,233 42,530 3 U.S. Treasury securities 4,418 4,346 4,196 4,034 4,080 4,083 4,331 4,337 4,313 4 Other securities 861 859 872 905 934 939 942 956 959 5 Federal funds sold1 2,711 2,264 1,995 2,023 2,804 1,728 2,019 2,070 2,872 6 To commercial banks in United States .. 2,520 2,190 1,812 1,811 2,740 1,580 1,674 1,989 2,765 7 To others 190 74 182 212 64 148 344 80 107 8 Other loans, gross 34,952 34,947 35,274 36,375 37,027 36,512 35,811 34,870 34,386 9 Commercial and industrial 18,609 1188,,449911 18,610 18,726 1199,,113311 1188,,882211 1188,,778899 1188,,441177 1188,,888800 10 Bankers acceptances and commercial paper 3,004 3,112 3,161 3,141 3,122 3,016 2,998 2,874 2,938 11 All other 15,606 15,379 15,449 15,586 16,009 15,804 15,790 15,543 15,943 12 U.S. addressees 13,813 13,594 13,643 13,720 14,104 13,959 13,969 13,688 13,922 13 Non-U.S. addressees 1,793 1,785 1,806 1,866 1,905 1,845 1,821 1,855 2,020 14 To financial institutions 12,080 12,179 12,628 13,356 13,623 13,591 12,841 12,334 11,555 15 Commercial banks in United States... 9,689 9,752 10,244 10,966 11,123 11,177 10,380 9,846 9,029 16 Banks in foreign countries 1,802 1,807 1,804 1,805 1,915 1,764 1,852 1,853 1,917 17 Nonbank financial institutions 589 620 580 586 585 650 608 634 609 18 For purchasing and carrying securities .. 591 573 499 727 536 417 581 549 487 19 All other 3,672 3,704 3,537 3,565 3,736 33,,668833 33,,660000 33,,557700 33,,446633 20 Other assets (claims on nonrelated parties) 11,436 11,432 11,568 11,578 11,750 11,544 11,789 11,976 11,822 21 Net due from related institutions 12,615 12,287 11,759 12,378 11,521 14,294 13,115 13,609 11,858 22 Total assets 74,317 72,963 72,146 73,770 74,237 75,433 74,718 73,878 72,162 23 Deposits or credit balances2 21,197 20,414 20,357 20,416 20,517 19,707 19,708 19,402 19,249 24 Credit balances 188 176 196 189 196 181 185 194 201 25 Demand deposits 1,976 1,774 1,627 1,657 1,736 11,,775522 22,,004422 11,,995588 11,,775544 26 Individuals, partnerships, and corporations 809 800 780 745 748 908 886 836 820 27 Other 1,167 974 847 911 989 844 1,156 1,122 934 28 Total time and savings 19,033 18,464 18,534 18,570 1188,,558844 1177,,777755 1177,,448811 1177,,225500 1177,,229944 29 Individuals, partnerships, and corporations 16,381 15,744 15,783 15,876 15,756 15,091 14,718 14,554 14,616 30 Other 2,652 2,720 2,751 2,694 2,828 2,684 2,763 2,695 2,677 31 Borrowings3 33,824 33,830 33,648 35,008 34,643 37,843 37,556 36,572 33,993 32 Federal funds purchased4 10,243 9,610 8,630 9,037 8,737 12,260 1133,,009900 1122,,117711 1100,,661111 33 From commercial banks in United States 8,152 7,832 6,755 7,026 6,951 10,425 11,105 9,910 8,507 34 From others 2,091 1,778 1,875 2,010 1,786 1,835 1,984 2,261 2,104 35 Other liabilities for borrowed money.... 23,580 24,219 25,018 25,970 25,906 25,583 24,466 24,401 23,382 36 To commercial banks in United States 19,618 20,274 20,897 21,910 22,045 21,767 20,815 20,628 19,705 37 To others 3,962 3,945 4,121 4,061 3,861 3,816 3,651 3,772 3,677 38 Other liabilities to nonrelated parties 12,168 12,102 12,430 12,446 12,491 12,297 12,401 12,870 12,641 39 Net due to related institutions 7,128 6,617 5,712 5,900 6,587 5,585 5,052 5,034 6,279 40 Total liabilities 74,317 72,963 72,146 73,770 74,237 75,433 74,718 73,878 72,162 MEMO 41 Total loans (gross) and securities adjusted' 30,732 30,474 30,281 30,561 30,983 30,504 31,048 30,397 30,736 42 Total loans (gross) adjusted5 25,453 25,270 25,212 25,622 25,968 25,482 25,775 25,104 25,464 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 A23 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1982 1983 11997788 1199779922 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 1 All holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 288.9 268.9 271.5 276.7 295.4 283.5 289.5 2 Financial business 27.8 27.1 29.8 28.0 27.8 28.6 31.9 35.5 34.0 35.1 3 Nonfinancial business 152.7 157.7 162.3 154.8 138.7 141.4 142.9 151.7 144.4 147.7 4 Consumer 97.4 99.2 102.4 86.6 84.6 83.7 83.3 88.1 85.5 86.9 5 Foreign 2.7 3.1 3.3 2.9 3.1 2.9 2.9 3.0 3.2 3.0 6 Other 14.1 15.1 17.2 16.7 14.6 15.0 15.7 17.1 16.4 16.8 Weekly reporting banks 1982 1983 11997788 1199779944 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar. June 7 Ail holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 137.5 126.8 127.9 132.1 144.0 140.7 141.9 8 Financial business 19.8 20.1 21.8 21.0 20.2 20.2 23.4 26.7 25.2 26.3 9 Nonfinancial business 79.0 74.1 78.3 75.2 67.1 67.7 68.7 74.2 72.7 73.1 10 Consumer 38.2 34.3 35.6 30.4 29.2 29.7 29.6 31.9 31.2 30.4 11 Foreign 2.5 3.0 3.1 2.8 2.9 2.8 2.7 2.9 3.0 2.9 12 Other 7.5 7.8 8.6 8.0 7.3 7.5 7.7 8.4 8.6 9.3 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

A24 Domestic Nonfinancial Statistics • November 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 98 c. 2 2 Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,455 166,208 170,659 169,503 170,716 172,199' 174,669 176,612 Financial companies3 Dealer-placed paper4 2 Total 12,181 17,359 19,599 29,904 34,067 37,481 3388,,664455 3399,,885500 3399,,002277 4400,,774499 39.800 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 1,950 11,,995544 22,,119922 22,,336677 22,,335533 2.303 Directly placed paper5 4 Total 51,647 64,757 67,854 81,715 84,183 87,831 8877,,223388 8877,,774499 8899,,558855 9900,,662288 91.600 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 32,495 32,943 33,420 33,613 35,085 34,856 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,958 45,347 43,620 43,117 43,587 43,292 45,212 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 70,389 68,797 70,907 72,710 75,177 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 9,494 8,223 9,147 9,008 8,498 9 Own bills 7,653 8,327 8,963 9,743 9,471 7,951 7,497 7,998 8,231 7,465 10 Bills bought 927 1,538 1,601 1,115 1,439 1,543 726 11,,114488 777 11,,003333 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 0 0 203 0 0 n a. 12 Foreign correspondents 664 1,382 1,791 1,442 949 778 788 792 670 717 13 Others 23,870 33,370 41,614 56,926 66,204 60,118 59,786 60,968 63,032 65,961 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 14,418 13,858 14,324 15,122 15,187 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 17,124 16,074 16,356 16,286 16,476 16 All other 17,540 25,411 30,257 39,061 45,532 38,848 38,865 40,226 41,301 43,514 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 Dec. 1, 1982, there was a break in the commercial paper series. The 4. Includes all financial company paper sold by dealers in the open market. key changes in the content of the data involved additions to the reporting panel, 5. As reported by financial companies that place their paper directly with the exclusion of broker or dealer placed borrowings under any master note investors. agreements from the reported data, and the reclassification of a large portion of 6. Includes public utilities and firms engaged primarily in such activities as 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 Average rate 1981—Nov. 24 16.00 1982—Aug. 23 13.50 1982—Jan 15.75 1983—Jan Dec. 1 15.75 Oct. 7 13.00 Feb 16.56 Feb 14 12.00 Mar 16.50 Mar Nov. 22 11.50 Apr 16.50 May 16.50 May 1982—Feb. 18 17.00 16.50 23 16.50 July 16.26 July July 20 16.00 Aug 14.39 Aug Aug. 2 2 9 1 1 5 5 . . 5 0 0 0 1983—Jan. 11 11.00 O Se c p t t 1 1 3 2 . . 5 5 0 2 S O e c p t t 1 1 6 8 1 1 4 4 . . 0 5 0 0 A Fe u b g . . 28 8 1101..0500 D N e o c v 1 1 1 1 . . 8 5 5 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Business Lending A25 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 1-5, 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 I Amount of loans (thousands of dollars) 36,819,868 949,559 668,400 1,094,777 2,138,132 986,449 30,982,550 2 Number of loans 171,400 115,850 20,397 17,109 12,274 1,478 4,291 3 Weighted-average maturity (months) 1.2 3.7 4.3 3.4 4.0 3.9 .8 4 With fixed rates .7 3.3 4.2 2.6 3.5 2.8 .4 5 With floating rates 2.1 4.6 4.5 4.7 4.3 4.5 1.5 6 Weighted-average interest rate (percent per annum) .. 11.09 13.99 13.56 12.73 11.89 11.81 10.81 7 Interquartile range1 10.52-11.07 13.10-14.93 12.25-14.50 11.85-13.65 11.02-12.53 11.02-12.46 10.52-11.01 8 With fixed rates 11.01 14.41 13.98 12.97 12.08 11.90 10.76 9 With floating rates 11.23 13.28 12.87 12.50 11.80 11.77 10.92 Percentage of amount of loans 10 With floating rate 36.2 37.6 38.3 50.4 66.0 71.7 32.4 11 Made under commitment 64.3 32.9 33.2 45.9 51.8 65.7 67.4 12 With no stated maturity 11.3 11.2 15.7 24.7 25.2 36.4 8.9 13 With one-day maturity 38.0 .1 .1 .2 .6 .9 45.0 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 4,491,493 531,982 386,952 151,196 3,421,363 15 Number of loans 26,332 23,262 2,176 228 667 16 Weighted-average maturity (months) 55.3 48.8 68.5 40.0 55.5 17 With fixed rates 61.8 54.2 112.8 53.1 52.6 18 With floating rates 53.7 38.3 46.5 37.7 55.9 19 Weighted-average interest rate (percent per annum) .. 11.83 14.53 12.06 11.66 11.39 20 Interquartile range1 10.92-12.40 12.68-15.60 11.02-12.96 11.02-12.13 10.92-11.73 21 With fixed rates 13.00 15.54 12.05 11.77 11.17 22 With floating rates 11.53 12.59 12.07 11.64 11.42 Percentage of amount of loans 23 With floating rate 79.8 34.1 66.8 85.4 88.1 24 Made under commitment 66.0 17.1 43.8 72.3 75.8 1-24 25-49 50-99 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 25 Amount of loans (thousands of dollars) 1,340,014 166,917 85,626 47,270 481,527 558,674 26 Number of loans 23,995 18,146 2,401 726 2,485 237 27 Weighted-average maturity (months) 15.5 5.4 10.4 11.5 19.7 17.0 28 With fixed rates 14.1 3.2 10.9 9.4 22.9 4.6 29 With floating rates 16.5 10.1 8.1 12.3 14.0 18.4 30 Weighted-average interest rate (percent per annum) .. 12.99 14.91 13.47 12.70 12.97 12.40 31 Interquartile range1 12.13-13.81 13.24-15.51 13.50-13.81 12.13-13.24 11.07-14.37 11.62-13.24 32 With fixed rates 14.18 15.57 13.66 13.10 14.08 12.61 33 With floating rates 12.33 13.50 12.81 12.56 11.93 12.37 Percentage of amount of loans 34 With floating rate 64.1 32.1 22.0 73.3 51.7 90.0 35 Secured by real estate 80.8 81.8 97.5 89.5 96.3 63.8 36 Made under commitment 75.4 80.1 60.9 74.6 83.5 69.3 37 With no stated maturity 10.1 1.0 2.7 7.6 24.8 1.4 38 With one-day maturity .4 .1 .2 .8 .3 .5 Type of construction 39 1- to 4-family 23.3 65.5 17.0 36.2 12.1 20.2 40 Multifamily 10.5 7.2 4.9 16.6 8.2 13.9 41 Nonresidential 66.2 27.3 78.1 47.2 79.7 65.9 All sizes 1-9 10-24 25-49 50-99 100-249 250 and over LOANS TO FARMERS 42 Amount of loans (thousands of dollars) 942,246 157,098 153,852 152,314 129,834 89,163 259,986 43 Number of loans 62,461 44,542 10,599 4,307 1,987 642 383 44 Weighted-average maturity (months) 7.1 6.7 6.1 7.0 8.0 6.4 8.0 45 Weighted-average interest rate (percent per annum) .. 13.72 14.30 14.03 14.15 13.79 13.60 12.94 46 Interquartile range1 12.87-14.49 13.42-14.85 13.42-14.57 13.50-14.63 13.00-14.49 12.43-14.97 11.84-14.49 By purpose of loan 4 4 8 7 O Fe th ed er e r l i l v i e v s e t s o t c o k c k 1 1 4 3 . . 1 0 4 5 1 14 6 . . 3 8 5 9 1 14 3 . . 3 9 1 0 1 14 4 . . 0 7 7 0 13 ( .921 ) 1 1 1 3 . . 5 3 7 3 12 ( .023 ) 5 4 0 9 O Fa th rm er m cu a r c r h e i n n t e r o y p e a r n a d ti n e g q u e i x p p m e e n n s t e s 1 1 4 3 . . 2 9 6 3 1 14 4 . . 0 5 1 5 1 1 3 4 . . 9 0 1 3 1 14 4 . . 0 4 7 0 13 ( .929 ) 13 ( .821 ) 13 ( .724 ) 51 Other 13.17 14.21 13.88 13.92 13.05 13.95 11.67 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

A26 Domestic Nonfinancial Statistics • November 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 July Aug. Sept. Oct. Sept. 30 Oct. 7 Oct. 14 Oct. 21 Oct. 28 MONEY MARKET RATES 1 Federal funds1-2 13.36 16.38 12.26 9.37 9.56 9.45 9.48 9.04 10.00 9.46 9.36 9.36 Commercial paper3-4 2 1-month 12.76 15.69 11.83 9.15 9.41 9.19 9.03 8.97 9.01 9.09 8.98 9.04 3 3-month 12.66 15.32 11.89 9.25 9.54 9.24 8.99 9.01 8.95 9.04 8.95 9.03 4 6-month 12.29 14.76 11.89 9.36 9.68 9.28 8.98 9.02 8.96 9.04 8.93 9.00 Finance paper, directly placed3-4 5 1-month 12.44 15.30 11.64 9.13 9.35 9.15 8.99 8.97 8.95 9.04 8.95 9.02 6 3-month 11.49 14.08 11.23 9.11 9.41 9.09 8.82 8.83 8.83 8.87 8.80 8.78 7 6-month 11.28 13.73 11.20 9.10 9.42 9.09 8.79 8.81 8.82 8.85 8.78 8.75 Bankers acceptances4-5 8 3-month 12.72 15.32 11.89 9.33 9.59 9.23 9.01 9.03 8.96 9.08 8.96 9.06 9 6-month 12.25 14.66 11.83 9.47 9.71 9.26 8.97 9.01 8.93 9.06 8.87 9.02 Certificates of deposit, secondary market6 10 1-month 12.91 15.91 12.04 9.30 9.52 9.28 9.11 9.08 9.08 9.14 9.07 9.15 11 3-month 13.07 15.91 12.27 9.50 9.77 9.39 9.18 9.17 9.13 9.22 9.13 9.25 12 6-month 12.99 15.77 12.57 9.91 10.17 9.64 9.31 9.36 9.30 9.38 9.24 9.34 13 Eurodollar deposits, 3-month2 14.00 16.79 13.12 10.00 10.27 9.82 9.54 9.50 9.48 9.50 9.56 9.56 U.S. Treasury bills4 Secondary market7 14 3-month 11.43 14.03 10.61 9.08 9.34 9.00 8.64 8.75 8.62 8.79 8.53 8.66 15 6-month 11.37 13.80 11.07 9.26 9.51 9.15 8.83 8.89 8.81 8.97 8.72 8.88 16 1-year 10.89 13.14 11.07 9.34 9.60 9.27 8.98 9.04 8.93 9.10 8.89 9.02 Auction average8 17 3-month 11.506 14.029 10.686 9.12 9.39 9.05 8.71 8.73 8.72 8.83 8.63 8.66 18 6-month 11.374 13.776 11.084 9.29 9.53 9.19 8.90 8.84 8.92 8.97 8.79 8.91 1199 1100..774488 1133..115599 1111..009999 99..3366 99..7777 99..6644 99..1133 99..1133 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 12.05 14.78 12.27 10.20 10.53 10.16 9.81 9.89 9.77 9.92 9.69 9.86 21 2-vear 11.77 14.56 12.80 10.69 11.07 10.79 10.57 10.56 10.49 10.67 10.51 10.63 ?? 2-w-year11 10.60 10 70 23 3-year 11.55 14.44 12.92 10.90 11.30 11.07 10.87 10.82 10.74 10.95 10.79 10.98 24 5-year 11.48 14.24 13.01 11.21 11.63 11.43 11.28 11.22 11.15 11.36 11.20 11.39 25 7-year 11.43 14.06 13.06 11.35 11.77 11.61 11.47 11.42 11.34 11.55 11.40 11.58 26 10-year 11.46 13.91 13.00 11.38 11.85 11.65 11.54 11.46 11.38 11.60 11.47 11.68 27 20-year 11.39 13.72 12.92 11.59 11.96 11.82 11.77 11.64 11.60 11.85 11.71 11.90 28 30-year 11.30 13.44 12.76 11.40 11.82 11.63 11.58 11.45 11.41 11.63 11.51 11.72 Composite12 29 Over 10 years (long-term) 10.81 12.87 12.23 11.10 11.42 11.26 11.21 11.09 11.04 11.28 11.16 11.34 State and local notes and bonds Moody's series13 30 Aaa 7.85 10.43 10.88 8.70 9.04 8.97 8.93 8.80 8.90 9.00 8.90 8.90 31 Baa 9.01 11.76 12.48 10.06 10.25 10.10 10.04 9.95 10.00 10.15 10.00 10.00 32 Bond Buyer series14 8.59 11.33 11.66 9.53 9.72 9.58 9.66 9.46 9.49 9.67 9.68 9.81 Corporate bonds Seasoned issues15 33 All industries 12.75 15.06 14.94 12.73 13.01 12.91 12.79 12.81 12.77 12.77 12.75 12.85 34 Aaa 11.94 14.17 13.79 12.15 12.51 12.37 12.25 12.22 12.20 12.22 12.21 12.34 35 Aa 12.50 14.75 14.41 12.39 12.72 12.62 12.49 12.49 12.45 12.51 12.46 12.54 36 A 12.89 15.29 15.43 12.99 13.17 13.11 12.97 13.04 12.99 12.95 12.93 13.00 37 Baa 13.67 16.04 16.11 13.39 13.64 13.55 13.46 13.49 13.44 13.42 13.42 13.52 Aaa utility bonds16 38 New issue 12.74 15.56 14.41 12.32 12.25 12.53 12.43 12.43 12.35 12.50 12.44 0 39 Recently offered issues 12.70 15.56 14.45 12.39 12.75 12.50 12.42 12.38 12.32 12.46 12.33 12.58 MEMO; Dividend/price ratio17 40 Preferred stocks 10.60 12.36 12.53 11.06 11.07 11.06 10.97 10.96 11.07 11.04 10.87 10.90 41 Common stocks 5.26 5.20 5.81 4.21 4.35 4.24 4.25 4.23 4.24 4.19 4.27 4.31 1. Weekly and monthly figures are averages of all calendar days, where the 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields rate for a weekend or holiday is taken to be the rate prevailing on the preceding are read from a yield curve at fixed maturities. Based on only recently issued, business day. The daily rate is the average of the rates on a given day weighted by actively traded securities. the volume of transactions at these rates. 11. Each biweekly figure is the average of five business days ending on the 2. Weekly figures are statement week averages—that is, averages for the Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate week ending Wednesday. determined the maximum interest rate payable in the following two-week period 3. Unweighted average of offering rates quoted by at least five dealers (in the on 2-'/i-year small saver certificates. (See table 1.16.) case of commercial paper), or finance companies (in the case of finance paper). 12. Averages of yields (to maturity or call) for all outstanding bonds neither due Before November 1979, maturities for data shown are 30-59 days, 90—119 days, nor callable in less than 10 years, including several very low yielding "flower" and 120-179 days for commercial paper; and 30-59 days, 90—119 days, and 150— bonds. 179 days for finance paper. 13. General obligations only, based on figures for Thursday, from Moody's 4. Yields are quoted on a bank-discount basis, rather than an investment yield Investors Service. basis (which would give a higher figure). 14. General obligations only, with 20 years to maturity, issued by 20 state and 5. Dealer closing offered rates for top-rated banks. Most representative rate local governmental units of mixed quality. Based on figures for Thursday. (which may be, but need not be, the average of the rates quoted by the dealers). 15. Daily figures from Moody's Investors Service. Based on yields to maturity 6. Unweighted average of offered rates quoted by at least five dealers early in on selected long-term bonds. the day. 16. Compilation of the Federal Reserve. Issues included are long-term (20 7. Unweighted average of closing bid rates quoted by at least five dealers. years or more). New-issue yields are based on quotations on date of offering; 8. Rates are recorded in the week in which bills are issued. Beginning with the those on recently offered issues (included only for first 4 weeks after termination Treasury bill auction held on Apr. 18, 1983, bidders were required to state the of underwriter price restrictions), on Friday close-of-business quotations. percentage yield (on a bank discount basis) that they would accept to two decimal 17. Standard and Poor's corporate series. Preferred stock ratio based on a places. Thus, average issuing rates in bill auctions will be reported using two sample often issues: four public utilities, four industrials, one financial, and one rather than three decimal places. transportation. Common stock ratios on the 500 stocks in the price index. 9. Yields are based on closing bid prices quoted by at least five dealers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 STOCK MARKET Selected Statistics 1983 IInnddiiccaattoorr 11998800 11998811 11998822 Feb. Mar. Apr. May June July Aug. Sept. Oct. 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 84.74 87.50 90.61 94.61 96.43 96.74 93.% %.70 %.78 2 Industrial 78.64 85.44 78.18 97.26 100.61 104.46 109.43 112.52 113.21 109.50 112.76 112.87 3 Transportation 60.52 72.61 60.41 79.44 83.28 85.26 89.07 92.22 92.91 88.06 94.56 95.41 4 Utility 37.35 38.90 39.75 45.92 45.89 46.22 47.62 46.76 46.61 46.94 48.16 48.73 5 Finance 64.28 73.52 71.99 86.57 93.22 99.07 102.45 101.22 99.60 95.76 97.00 94.79 6 Standard & Poor's Corporation (1941-43 = 10)' ... 118.71 128.05 119.71 146.80 151.88 157.71 164.10 166.39 166.% 162.42 167.16 167.65 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 150.47 171.79 141.31 187.17 191.88 202.51 223.97 237.51 244.03 230.10 234.36 223.76 Volume of trading (thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 85,026 82,694 89,627 93,016 89,729 79,508 74,191 82,866 85,445 9 American Stock Exchange 6,377 5,346 5,283 8,256 7,354 8,576 12,260 10,874 8,199 6,329 6,629 7,751 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers3 14,721 14,411 13,325 13,985 14,483 15,590 16,713 18,292 19,218 19,437 20,124 f 11 Margin stock4 14,500 14,150 12,980 13,680 14,170 15,260 16,370 17,930 18,870 19,090 19,760 1 12 Convertible bonds 219 259 344 304 312 329 342 361 347 346 363 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 6,195 6,370 6,090 6,090 6,150 6,275 6,350 6,550 15 Cash-account 6,070 7,150 8,390 7,955 7,%5 7,970 8,310 8,590 8,145 8,035 7,930 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 18.0 17.0 14.0 14.0 13.0 21.0 23.0 23.0 18 40-49 30.0 24.0 24.0 20.0 21.0 19.0 19.0 21.0 28.0 28.0 27.0 19 50-59 25.0 17.0 24.0 27.0 25.0 28.0 30.0 29.0 21.0 20.0 21.0 n.a. 2 2 1 0 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 0 6 . . 0 0 1 1 0 8 . . 0 0 1 1 0 9 . . 0 0 1 1 1 6 . .0 0 1 1 2 6 . . 0 0 1 9 4 . . 0 0 1 9 3 . . 0 0 1 9 3 . . 0 0 11 22 80 or more 8.0 6.0 8.0 9.0 9.0 9.0 9.0 9.0 7.0 7.0 7.0 t Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)7 21,690 25,870 35,598 43,006 43,472 44,999 45,465 47,100 50,580 50,267 51,211 Distribution by equity status (percent) 1 24 Net credit status 47.8 58.0 62.0 66.0 62.0 64.0 62.0 62.0 62.0 62.0 64.0 n.a. Debt status, equity of 1 25 60 percent or more 44.4 31.0 29.0 27.0 28.0 30.0 32.0 33.0 31.0 31.0 29.0 1 26 Less than 60 percent 7.7 11.0 9.0 7.0 9.0 6.0 6.0 5.0 6.0 7.0 7.0 t 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 carry 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 Besides assigning a current loan value to margin stock generally. Regulations T securities as collateral by prescribing a maximum loan value, which is a specified and U permit special loan values for convertible bonds and stock acquired through percentage of the market value of the collateral at the time the credit is extended. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • November 1983 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 Oct. Nov. Dec. Feb. Mar. Apr. May June July Aug. Sept.? Savings and loan associations 1 Assets 630,712 664,167 692,549 697,189 706,045 772,352 723,616 728,487 728,156 731,275 739,575 745,040 747,583 2 Mortgages 503,192 518,547 489,923 488,614 482,234 481,090 475,688 476,248 472,124 473,134 477,919 481,691 481,346 3 Cash and investment securities1 57,928 63,123 75,638 78,122 84,767 94,080 %,649 99,226 103,468 101,284 101,754 98,9% 99,697 4 Other 69,592 82,497 126,988 130,453 139,044 147,182 151,279 153,013 152,564 156,857 159,902 164,353 166,540 5 Liabilities and net worth 630,712 664,167 692,549 697,189 706,045 772,352 723,616 728,487 728,156 731,275 739,575 745,040 747,583 6 Savings capital 511,636 525,061 547,112 548,439 566,189 591,913 597,112 601,171 599,673 603,178 608,683 613,087 616,672 7 Borrowed money 64,586 88,782 100,881 102,948 97,979 86,544 84,884 83,640 82,722 84,328 84,682 84,345 85,909 8 FHLBB 47,045 62,794 65,015 64,202 63,861 58,841 56,859 55,933 54,392 54,234 53,579 52,303 52,162 9 Other 17,541 25,988 35,866 38,746 34,118 27,703 28,025 27,707 28,330 30,094 31,103 32,042 33,747 10 Loans in process 8,767 6,385 8,484 8,967 9,934 11,039 12,245 13,462 14,528 15,972 17,063 17,931 18,712 11 Other 12,394 15,544 20,018 21,048 15,720 17,524 14,767 16,210 18,323 15,548 17,931 19,078 16,058 12 Net worth2 33,329 28,395 24,538 24,754 26,157 26,371 26,853 27,466 27,438 28,221 28,279 28,530 29,944 13 MEMO: Mortgage loan commitments outstanding3 16,102 15,225 18,407 19,682 18,054 22,051 24,885 27,920 30,089 30,630 31,667 32,342 32,155 Mutual savings banks4 14 Assets 171,564 175,728 172,908 172,287 174,197 176,378 178,814 178,826 180,071 181,975 182,822 183,612 Loans 15 Mortgage 99,865 99,997 94,261 94,017 94,091 93,607 93,822 93,311 93,587 94,000 93,998 93,941 16 Other 1111,,773333 14,753 17,035 16,702 16,957 18,211 17,837 18,353 17,893 17,438 1188,,113344 1177,,992299 Securities 17 U.S. government5 8,949 9,810 9,219 9,456 9,743 11,081 12,187 12,364 13,110 13,572 13,931 14,484 18 State and local government 2,390 2,288 2,505 2,496 2,470 2,440 2,403 2,311 2,260 2,257 2,248 2,247 19 Corporate and other6 39,282 37,791 35,599 35,753 36,161 36,905 37,827 38,342 39,142 40,206 40,667 41,045 20 Cash 4,334 5,442 6,749 6,291 6,919 6,104 6,548 6,039 5,960 6,224 5,322 5,168 21 Other assets 5,011 5,649 7,540 7,572 7,855 8,031 8,189 8,107 8,118 8,276 8,522 8,799 n.a. 22 Liabilities 171,564 175,728 172,908 172,287 174,197 176,378 178,814 178,826 180,071 181,975 182,822 183,612 23 Deposits 154,805 155,110 152,210 151,304 155,1% 159,162 161,489 161,262 162,287 163,990 164,848 165,087 24 Regular7 151,416 153,003 149,928 149,167 152,777 156,915 159,088 158,760 159,840 161,573 162,271 162,600 25 Ordinary savings 53,971 49,425 48,520 49,208 46,862 41,165 41,183 40,379 40,467 40,451 39,983 39,360 26 Time 97,445 103,578 101,408 99,959 %,369 87,377 86,276 84,593 83,506 84,705 85,445 86,446 27 Other 2,086 2,108 2,283 2,137 2,419 2,247 2,401 2,502 2,447 2,417 2,577 2,487 28 Other liabilities 6,695 10,632 11,556 11,893 8,336 7,542 7,395 7,631 3,114 7,754 7,5% 7,884 29 General reserve accounts 11,368 9,986 9,141 9,089 9,235 9,197 9,342 9,352 9,377 9,575 9,684 9,932 30 MEMO: Mortgage loan commitments outstanding8 1,476 1,293 1,281 1,400 1,285 1,295 1,639 1,860 1,860 1,884 1,969 2,046 Life insurance companies 31 Assets 479,210 525,803 571,902 578,200 584,311 595,959 602,770 609,298 591,375 628,224 633,569 638,826 Securities 32 Government 21,378 25,209 31,791 32,682 34,558 36,946 38,469 39,210 42,522 43,348 44,751 45,700 33 United States9 5,345 8,167 13,538 14,370 16,072 17,877 19,213 19,213 20,705 21,141 22,228 22,817 34 State and local 6,701 7,151 7,871 7,935 8,094 8,333 8,368 8,524 10,053 10,355 10,504 10,695 35 Foreign10 9,332 9,891 10,382 10,377 10,392 10,736 10,888 10,940 11,764 11,852 12,019 12,188 36 Business 238,113 255,769 279,918 283,650 283,799 293,427 2%,223 300,558 309,254 313,510 316,934 318,584 n.a. 37 Bonds 190,747 208,098 226,879 229,101 228,220 235,376 236,420 238,689 245,833 248,248 252,397 253,977 38 Stocks 47,366 47,670 53,039 54,549 55,579 58,051 59,803 61,869 63,421 65,262 64,537 64,607 39 Mortgages 131,030 137,747 140,678 140,956 141,919 142,683 143,031 143,011 143,758 144,725 145,086 146,400 40 Real estate 15,063 18,278 20,293 20,480 21,019 21,014 21,175 21,352 21,344 21,629 21,690 21,749 41 Policy loans 41,411 48,706 52,751 52,916 53,114 53,383 53,560 53,715 53,804 53,914 53,972 54,063 42 Other assets 31,702 40,094 46,471 47,516 49,902 48,506 50,322 51,452 49,889 51,098 51,136 52,330 Credit unions11 43 Total assets/liabilities and capital 71,709 77,682 68,157 68,876 69,572 71,412r 73,876' 74,896' 76,851' 78,467' 79,084 79,595 44 Federal 39,801 42,382 44,388 44,986 45,483 46,673r 48.35C 48,986' 50,275' 51,43c 51,844 52,224 45 State 31,908 35,300 23,769 23,890 24,089 24,739-- 22,526' 25,91C 26,576' 27,037' 27,240 27,371 46 Loans outstanding 47,774 50,448 42,971 42,995 43,223 42,823' 43,067' 43.53C 44,055' 45,001' 45,616 46,880 n .a, 47 Federal 25,627 27,458 27,648 27,728 27,941 27,644' 27,823' 28,133' 28,512' 29,175' 29,577 30,384 48 State 22,147 22,990 15,323 15,267 15,282 15,179' 15,244' 15,397' 15,543' 15,826' 16,039 16,496 49 Savings 64,399 68,871 61,829 62,673 62,977 64,78C 67,494' 68,663' 70,221' 71,712' 72,438 72,550 50 Federal (shares) 36,348 37,574 40,535 41,076 41,341 42,533' 44,336' 45,165' 46,192' 47,145' 47,713 47,874 51 State (shares and deposits) 28,051 31,297 21,294 21,597 21,636 65,605' 23,158' 23,498' 24,029' 24,567' 24,725 24,676 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 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 11998811 11998822 11998833 HI H2 HI July Aug. Sept. U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 43,948 49,683 63,556 2 Outlays12 657,204 728,375 795,917 348,678 390,846 396,477 65,360 67,160 61,610 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -21,412 -17,477 1,946 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 -5,592 289 14,006 5 Federal funds -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -15,820 -17,765 -12,060 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -1,326 -1,112 -1,270 77 OOtthheerr -236 -3,190 -1,953 227 -2,267 -528 33 -155 -1,432 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -78,936 -127,940 -207,711 -33,914 -111,699 -96,094 -22,705 -18,744 -756 Source or financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 11,877 20,522 15,442 10 Cash and monetary assets (decrease, or increase (-)) -1,878 -11,911 -9,889 -408 -9,057 -9,664 6,317 4,328 -19,061 11 Other6 1,485 4,858 5,176 -7,405 1,146 3,222 4,511 -6,106 4,375 MEMO; 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 21,646r 18,469 37,057 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 3,815r 4,189 16,557 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 17,831' 14,280 20,500 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. As of June 1982, data include only federal or federally insured state credit 2. Includes net undistributed income, which is accrued by most, but not all, unions serving natural persons. 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 federally insured state credit unions serving natural persons. Figures are preliminary and revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • November 1983 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyy 111999 eee 888 aaa 111 rrr yyy 111999 eee 888 aaarrr 222 yyy 111 eee 999888 aaarrr 333 1982 1983 1983 HI H2 HI July Aug. Sept. RECEIPTS 1 AU sources1 599,272 617,766 600,563 322,478 286,338 306,331 43,948 49,683 63,556 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 21,938 23,259 30,961 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 21,437 22,519 2211,,006600 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 3 2 11 5 Nonwithheld 76,844 84,691 83,586 66,174 20,040 63,014 2,160 1,967 11,595 6 Refunds 47,299 54,498 60,692 49,217 55,,993388 54,024 11,,666622 11,,222288 11,,669955 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 2,562 1,816 10,477 8 Refunds 12,596 16,784 24,758 8,028 11,467 13,809 11,,770066 11,,443333 11,,443300 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 94,278 110,521 1155,,331177 2200,,008899 1177,,224400 10 Payroll employment taxes and contributions2 156,932 172,744 179,010 88,795 85,063 90,912 1144,,110088 1166,,113377 1155,,775533 11 Self-employment taxes and contributions3 6,041 7,941 6,756 7,357 177 6,427 -632 0 927 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 1,454 3,529 176 13 Other net receipts14 3,984 4,212 4,436 2,119 2,181 2,1% 387 423 384 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 3,369 3,112 3,692 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 772 967 815 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 559 514 552 17 Miscellaneous receipts5 13,790 16,161 15,594 7,984 7,891 7,751 1,137 1,359 1,249 OUTLAYS 18 All types' 657,204 728,424 795,917 348,683 390,847 396,477 65,360 67,160 61,610 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 17,394 18,548 18,086 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 1,038 209 822 21 General science, space, and technology... 6,359 7,070 7,777 3,370 3,903 3,486 687 707 685 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 243 258 -97 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 955 1,188 1,344 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 685 -5 662 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 665 -332 190 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 1,875 2,101 2,148 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 514 689 671 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 1,943 2,673 2,046 29 Health1 65,982 74,017 81,157 37,219 39,073 41,206 6,672 7,420 5,917 30 Income security 225,101 248,343 280,244 112,782 133,779 143,001 22,536 22,418 22,853 31 Veterans benefits and services 22,988 23,955 24,845 10,865 13,241 11,334 2,024 2,258 2,012 32 Administration of justice 4,6% 4,671 5,014 2,334 2,373 2,522 453 491 398 33 General government 4,614 4,726 4,991 2,400 2,322 2,434 -93 1,248 282 34 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 1,178 36 31 35 Net interest" 68,726 84,697 103,916 41,883 44,948 50,383 7,606 8,695 6,390 36 Undistributed offsetting receipts7 -16,509 -13,270 -35,566 -6,490 -8,333 -16,912 -1,017 -1,444 -2,828 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 A31 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1981 1982 1983 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 1,003.9 1,034.7 1,066.4 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 2 Public debt securities 997.9 1,028.7 1,061.3 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 3 Held by public 789.8 825.5 858.9 867.9 925.6 987.7 1,043.3 1,090.3 n.a. 4 Held by agencies 208.1 203.2 202.4 211.7 216.4 209.4 201.2 229.3 n.a. 5 Agency securities 6.1 6.0 5.1 5.0 5.0 4.8 4.8 4.7 4.7 6 Held by public 4.6 4.6 3.9 3.9 3.7 3.7 3.7 3.6 n.a. 7 Held by agencies 1.5 1.4 1.2 1.2 1.2 1.2 1.1 1.1 n.a. 8 Debt subject to statutory limit 998.8 1,029.7 1,062.2 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 9 Public debt securities 997.2 1,028.1 1,060.7 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 10 Other debt1 1.6 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.3 11 MEMO: Statutory debt limit 999.8 1,079.8 1,079.8 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 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 June July Aug. Sept. Oct 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,319.6 1,326.9 1,348.4 1,377.2 1,384.6 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,318.1 1,320.7 1,346.9 1,375.8 1,383.3 3 Marketable 530.7 623.2 720.3 881.5 978.9 985.7 1,010.4 1,024.0 1,035.3 4 Bills 172.6 216.1 245.0 311.8 334.3 337.6 340.4 340.7 339.0 5 Notes 283.4 321.6 375.3 465.0 527.1 527.2 544.2 557.5 566.2 6 Bonds 74.7 85.4 99.9 104.6 117.5 120.9 125.8 125.7 129.2 7 Nonmarketable1 313.2 305.7 307.0 314.0 339.2 335.0 336.5 351.8 347.9 8 2.2 9 State and local government series 24.6 23.8 23.0 25.7 33.1 33.2 33.9 35.1 35.3 10 Foreign issues3 28.8 24.0 19.0 14.7 11.4 11.2 11.1 11.5 11.5 11 Government 23.6 17.6 14.9 13.0 10.8 11.2 11.1 11.5 11.5 12 Public 5.3 6.4 4.1 1.7 .6 .0 .0 .0 .0 13 Savings bonds and notes 79.9 72.5 68.1 68.0 69.4 69.7 70.0 70.3 70.6 14 Government account series4 177.5 185.1 196.7 205.4 225.0 220.6 221.4 234.7 230.3 15 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.5 6.2 1.5 1.5 1.3 By holder5 16 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 229.3 17 Federal Reserve Banks 117.5 121.3 131.0 139.3 141.7 18 Private investors 540.5 616.4 694.5 848.4 950.5 19 Commercial banks 96.4 116.0 109.4 131.4 171.6 20 Mutual savings banks 4.7 5.4 5.2 n.a. 1 21 Insurance companies 16.7 20.1 19.1 38.7 I 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 t Individuals 24 Savings bonds 79.9 72.5 68.0 68.3 69.7 25 Other securities 36.2 56.7 75.6 48.2 50.7 26 Foreign and international6 124.4 127.7 141.4 149.4 159.9 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 \ Vi 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

A32 Domestic Nonfinancial Statistics • November 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 July Aug. Sept. Aug. 10 Aug. 17 Aug. 24 Aug. 31 Sept. 7 Sept. 14 Immediate delivery1 1 U.S. government securities 18,331 24,728 32,271 38,095 45,684 47,617 43,108 48,116 41,962 48,052 46,610 39,807 By maturity 2 Bills 11,413 14,768 18,398 21,941 23,911 24,031 21,699 25,077 21,404 2255,,991155 24,281 20,460 3 Other within 1 year 421 621 810 575 669 665 513 712 526 888844 698 820 4 1-5 years 3,330 4,360 6,272 7,124 10,192 10,311 7,768 10,144 9,482 11,992 7,128 7,857 5 5-10 years : ,464 2,451 3,557 4,177 4,814 7,343 5,146 5,457 4,698 4,822 10,455 6,006 6 Over 10 years 1,704 2,528 3,234 4,278 6,098 5,267 7,984 6,726 5,852 4,439 4,048 4,664 By type of customer / U.S. government securities dealers : ,484 1,640 1,769 2,134 2,179 2,377 2,119 2,400 1,819 2,384 2,366 1,900 8 U.S. government securities brokers 7,610 11,750 15,659 19,058 23,951 24,261 22,230 25,382 22,104 24,911 22,863 19,651 9 All others2 9,237 11,337 15,344 16,904 19,553 20,980 18,760 20,334 18,039 20,758 21,381 18,255 10 Federal agency securities 3,258 3,306 4,142 5,005 5,267 6,170 4,209 7,005 5,083 5,326 4,532 6,287 11 Certificates of deposit 2,472 4,477 5,001 4,504 4,425 4,736 3,280 5,024 5,050 4,401 4,415 4,586 12 Bankers acceptances 1,807 2,502 2,615 2,658 3,061 2,407 2,731 3,031 2,369 3,059 3,086 13 Commercial paper 6,128 7,595 8,275 7,130 7,633 7,006 7,614 6,911 7,071 8,261 7,460 Futures transactions3 14 Treasury bills 3,523 5,031 6,684 7,459 5,979 6,505 7,603 6,307 8,068 5,432 4,858 15 Treasury coupons n a. 1,330 1,490 2,503 3,144 2,749 2,957 3,298 3,298 3,076 1,978 2,182 16 Federal agency securities 234 259 446 270 191 316 361 204 229 139 163 Forward transactions4 17 U.S. government securities 365 835 1,498 1,795 2,116 1,944 809 1,894 1,146 1,084 1,833 18 Federal agency securities 1,370 982 1,591 2,118 1,886 2,358 2,752 1,840 1,416 1,276 1,892 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 June July Aug. Aug. 3 Aug. 10 Aug. 17 Aug. 24 Aug. 31 Positions Net immediate1 1 U.S. government securities 4,306 9,033 9,328 3,877r 572 3,255 1,108 3,819 2,956 2,843 4,270 2 Bills 4,103 6,485 4,837 3,657r 411 880 189 606 1,003 859 958 3 Other within 1 year - ,062 -1,526 -199 63 126 -198 125 201 -89 -553 -541 4 1-5 years 434 1,488 2.932 -183 326 2,216 1,786 2,250 1,248 1,818 3,779 5 5-10 years 166 292 -341 550 352 147 18 617 374 168 -457 6 Over 10 years 665 2,294 2,001 -210 -643 211 -1,009 145 421 551 530 7 Federal agency securities 797 2,277 3,712 5,631 6,904 7,994 7,462 8,423 8,641 7,287 7,904 8 Certificates of deposit 3.115 3,435 5,531 4,488 4,729 4,687 4,425 4,683 4,526 4,461 5,230 9 Bankers acceptances 1,746 2,832 2,405 2,764 2,917 2,817 2,840 2,890 2,875 2,986 10 Commercial paper 2,658 3,317 2,894 2,782 2,755 2.899 3,013 2,643 2,462 2,744 Futures positions 11 Treasury bills -8,934 -2,508 -1,023 -1,578 1,493 1,960 5,3% 3,413 -970 -3,208 12 Treasury coupons n.a. -2,733 -2,361 -2 -1,077 -1,715 -1,999 -2,523 -2,015 -1,118 -952 13 Federal agency securities 522 -224 204 381 428 96 403 626 439 435 Forward positions 14 U.S. government securities -603 -788 -635 -1,631 -4,348 -3,925 -4,269 -4,676 -4,652 -3,940 15 Federal agency securities -451 -1,190 -1,802 -2,199 -4,046 -2,726 -3,242 -4,682 -4,320 -4,721 Financing2 Reverse repurchase agreements- Overnight and continuing.... 14,568 26,754 29,613 34,936 31,969 31,019 32,870 31,967 Term agreements 32,048 48,247 49,145 48,064 49,325 50,484 50,725 53,484 Repurchase agreements4 Overnight and continuing.... 35,919 49,695 56,459 59,099 58,369 57,932 60,765 56,115 Term agreements 29,449 43,410 39,423 36,772 37.866 39,189 41,511 45,851 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1983 AAggeennccyy 11998800 11998811 11998822 Apr. May June July Aug. Sept. 1 Federal and federally sponsored agencies 188,665 221,946 237,085 234,852 234,289 235,041 236,037 236,931 236,610 2 Federal agencies 28,606 31,806 33,055 33,120 33,065 33,353 33,436 33,420 33,744 3 Defense Department1 610 484 354 318 308 298 284 274 264 4 Export-Import Bank2'3 11,250 33,339 14,218 14,304 14,303 14,563 14,563 14,564 14,740 5 Federal Housing Administration4 477 413 288 255 243 228 220 213 206 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 1,404 1,404 1,404 1,404 1,404 8 Tennessee Valley Authority 11,190 13,115 14,365 14,485 14,520 14,570 14,675 14,675 14,840 9 United States Railway Association6 492 202 194 122 122 125 125 125 125 10 Federally sponsored agencies7 160,059 190,140 204,030 201,732 201,224 201,688 202,601 203,511 202,866 11 Federal Home Loan Banks 37,268 54,131 55,967 50,297 49,756 48,871 49,065 49,081 49,283 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 5,160 5,777 6,500 6,146 5,875 6,134 13 Federal National Mortgage Association 55,182 58,749 70,052 72,058 70,769 71,303 71,612 72,163 71,258 14 Farm Credit Banks 62,923 71,359 71,8% 72,227 72,548 72,652 73,306 73,744 73,046 15 Student Loan Marketing Association (8) 421 1,591 1,990 2,374 2,362 2,472 2,648 3,145 MEMO: 16 Federal Financing Bank debt9 87,460 110,698 126,424 129,125 130,528 131,987 133,367 134,505 136,081 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,232 14,232 14,493 14,493 14,493 14,676 18 Postal Service6 1,520 1,288 1,221 1,221 1,154 1,154 1,154 1,154 1,154 19 Student Loan Marketing Association 2,720 5,400 5,000 5,000 5,000 5,000 5,000 5,000 5,000 20 Tennessee Valley Authority 9,465 11,390 12,640 12,760 12,795 12,845 12,950 12,950 13,115 21 United States Railway Association6 492 202 194 122 122 125 125 125 125 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 53,541 54,586 54,946 55,776 56,386 55,691 23 Rural Electrification Administration 9,196 13,516 17,157 17,970 18,076 18,378 18,497 18,638 18,936 24 Other 11,262' 12,740' 22,774' 24,279' 24,563' 25,046' 25,372' 25,759' 27,384 1. Consists of mortgages assumed by the Defense Department between 1957 7. Includes outstanding noncontingent 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. Before 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 before 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 Fanners 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, that is, 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

A34 Domestic Nonfinancial Statistics • November 1983 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 Type of issue or issuer. or use 11998800 11998811 11998822 Jan. Feb/ Mar. Apr/ May' June' July' Aug. 1 All issues, new and refunding1 48,367 47,732 78,950 3,797'' 6,170 8,752' 10,982 9,541 7,350 4,207 6,000 Type of issue 2 General obligation 14,100 12,394 21,088 869 1,257 2,262' 3,463 3,553 1,516 826 1,511 3 U.S. government loans2 38 34 225 0 3 3 2 6 7 7 9 4 Revenue 34,267 35,338 57.862 2,928' 4,913 6,490' 7,519 5,988 5,834 3,381 4,489 5 U.S. government loans2 57 55 461 0 2 5 9 14 16 26 29 Type of issuer 6 State 5,304 5,288 8,406 237 252 724 1,745 830 277 484 670 7 Special district and statutory authority 26,972 27,499 45,000 2,220' 4,256 5,437' 5,791 4,458 4,151 2,940 3,255 8 Municipalities, counties, townships, school districts 16,090 14,945 25,544 1,340 1,662 2,591' 3,446 4,253 2,922 783 2,075 9 Issues for new capital, total 46,736 46,530 74,612 3,295' 5,072 7,532' 9,039 6,965 5,867 3,731 4,424 Use of proceeds 10 Education 4,572 4,547 6,444 355 1,089 831 680 827 873 524 705 11 Transportation 2,621 3.447 6,256 50 541 816 560 416 228 270 255 12 Utilities and conservation 8,149 10,037 14,254 977 1,050 1,732 2,591 1,515 930 253 260 13 Social welfare 19,958 12,729 26,605 927' 1,511 2,794' 3,128 2,062 2,050 1,866 2,117 14 Industrial aid 3,974 7,651 8,256 323 182 389 480 699 625 339 335 15 Other purposes 7,462 8,119 12,797 663 699 970 1,600 1,446 1,161 479 752 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 1983 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June July Aug. 1 All issues1'2 73,694 70,441 84,198 7,709 8,491 11,728 10,468 11,489 8,165 6,474 5,941 2 Bonds 53,206 45,092 53,636 4,569 3,839 5,317 6,015 7,017 2,244 2,550 2,547 Type of offering 3 Public 41,587 38,103 43,838 4,569 3,839 5,317 6,015 7,017 2,244 2,550 2,547 4 Private placement 11,619 6,989 9,798 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 15,409 12,325 13,123 849 655 962 1,449 2,158 706 60 200 6 Commercial and miscellaneous 6,693 5,229 5,681 562 335 511 1,109 1,055 425 228 458 7 Transportation 3,329 2,052 1,474 32 250 0 175 150 115 148 0 8 Public utility 9,557 8,963 12,155 313 763 950 755 1,115 363 322 355 9 Communication 6,683 4,280 2,265 0 0 650 725 505 250 1,100 0 10 Real estate and financial 11,534 12,243 18.938 2,813 1,836 2,244 1,802 2,034 385 692 1,534 11 Stocks3 20,489 25,349 30,562 3,140 4,652 6,411 4,453 4,472 5,921 3,924 3,394 Type 12 Preferred 3,631 1,797 5,113 594 1,962 893 440 492 665 290 247 13 Common 16,858 23,552 25,449 2,546 2,690 5,518 4,013 3,980 5,256 3,634 3,147 Industry group 14 Manufacturing 4,839 5,074 5.649 888 1,038 1,654 1,424 1,545 2,449 1,015 1,309 15 Commercial and miscellaneous 5,245 7,557 7,770 994 646 1,225 1,494 922 1,358 1,415 743 16 Transportation 549 779 709 355 283 91 113 221 109 337 145 17 Public utility 6,230 5,577 7,517 350 534 674 639 264 550 72 263 18 Communication 567 1,778 2,227 187 i 1,133 37 8 138 20 236 19 Real estate and financial 3,059 4,584 6,690 366 2,149 1,634 746 1,512 1,317 1,065 698 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 A35 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1983 IItteemm 11998811 11998822 Feb. Mar. Apr. May June July Aug/ Sept. INVESTMENT COMPANIES1 1 Sales of own shares2 20,596 45,675 6,115 7,871 8,418 7,577 8,107 6,944 6,032 5,915 2 Redemptions of own shares3 15,866 30,078 3,510 5,066 6,482 4,486 5,416 4,500 4,885 4,412 3 Net sales 4,730 15,597 2,605 2,805 1,936 3,091 2,691 2,444 1,147 1,503 4 Assets4 55,207 76,841 84,981 90,075 98,669 101,423 106,449 104,279 104,494 109,325 5 Cash position5 5,277 6,04C 7,404 7,904 8,496 8,771 9,110 8,815 8,045 8,794 6 Other 49,930 70,801R 77,577 82,171 90,173 92,652 97,339 95,464 93,449 100,531 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. 1981 1982 1983 AAccccoouunntt 11998800 11998811 11998822 Q3 Q4 QL Q2 Q3 Q4 QL Q2 1 Corporate profits with inventory valuation and capital consumption adjustment 175.4 192.3 164.8 197.6 192.0 162.0 166.8 168.5 161.9 181.8 218.2 2 Profits before tax 234.6 227.0 174.2 227.7 217.2 173.2 178.8 177.3 167.5 169.7 203.3 3 Profits tax liability 84.8 82.8 59.2 83.7 75.6 60.3 61.4 60.8 54.0 61.5 76.0 4 Profits after tax 149.8 144.1 115.1 144.0 141.6 112.9 117.4 116.5 113.5 108.2 127.2 5 Dividends 58.6 64.7 68.7 66.4 67.3 67.7 67.8 68.8 70.4 71.4 72.0 6 Undistributed profits 91.2 79.5 46.6 77.6 74.3 45.2 49.6 47.7 43.1 36.7 55.2 7 Inventory valuation -42.9 -23.6 -8.4 -19.4 -15.7 -5.5 -8.5 -9.0 -10.3 -1.7 -10.6 8 Capital consumption adjustment -16.3 -11.0 -1.1 -10.7 -9.5 -5.6 -3.5 0.1 4.7 13.9 25.6 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • November 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1982' 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811'' Q2 Q3 Q4 QK Q2 1 Current assets 912.7 1,043.7 1,214.8 1,327.0 1,419.3 1,417.2 1,441.8 1,425.4 1,436.5 1,464.2 2 Cash 97.2 105.5 118.0 126.9 131.8 124.1 126.9 144.0 139.7 145.7 3 U.S. government securities 18.2 17.2 16.7 18.7 17.4 16.5 18.9 22.4 25.8 27.5 4 Notes and accounts receivable 330.3 388.0 459.0 506.8 530.3 531.2 534.2 511.0 517.9 534.3 5 Inventories 376.9 431.8 505.1 542.8 585.1 587.6 596.5 575.2 573.2 570.2 6 Other 90.1 101.1 116.0 131.8 154.6 157.9 165.3 172.6 179.9 186.2 7 Current liabilities 557.1 669.5 807.3 889.3 976.3 988.7 1,007.6 977.8 986.3 997.7 8 Notes and accounts payable 317.6 383.0 460.8 513.6 558.8 554.9 562.7 552.8 543.2 551.6 9 Other 239.6 286.5 346.5 375.7 417.5 433.8 444.9 425.0 443.1 446.1 10 Net working capital 355.5 374.3 407.5 437.8 442.9 428.5 434.2 447.6 450.2 466.5 11 MEMO: Current ratio1 1,638 1,559 1,505 1,492 1,454 1,433 1,431 1,458 1,456 1,468 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 11998833'' Q2 Q3 Q4 Q1 Q2 Q31 Q41 1 Total nonfarm business 321.49 316.43 306.57 323.22 315.79 302.77 293.03 293.46 313.04 326.73 Manufacturing 2 Durable goods industries 61.84 56.44 51.49 59.03 57.14 50.50 50.74 48.48 53.00 53.73 3 Nondurable goods industries 64.95 63.23 62.49 64.74 62.32 59.59 59.12 60.31 64.44 66.07 Nonmanufacturing 4 Mining 16.86 15.45 12.71 16.56 14.63 13.31 12.03 10.91 13.29 14.60 Transportation 5 Railroad 4.24 4.38 3.75 4.73 3.94 4.31 3.35 3.64 3.70 4.31 6 Air 3.81 3.93 3.75 3.54 4.11 4.85 4.09 4.10 3.10 3.69 7 Other 4.00 3.64 3.63 4.06 3.24 3.25 3.60 3.14 3.70 4.08 Public utilities 8 Electric 29.74 33.40 34.46 32.26 34.98 35.12 33.97 34.86 34.34 34.67 9 Gas and other 8.65 8.55 7.72 9.14 8.40 7.77 7.64 6.62 7.76 8.86 10 Trade and services 86.33 86.95 87.68 88.85 87.31 84.00 82.38 85.85 89.31 93.18 11 Communication and other2 41.06 40.46 38.90 40.33 39.73 40.06 36.11 35.54 40.40 43.54 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 A37 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Q2 Q3 Q4 QL Q2 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 85.5 88.0 88.3 89.5 89.9 91.3 2 Business 55.2 63.3 70.3 72.3 80.6 82.6 82.2 81.0 82.2 84.9 3 Total 99.2 116.0 136.0 145.9 166.1 170.6 170.5 170.4 172.1 176.2 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 28.9 30.2 30.4 30.5 29.7 30.4 5 Accounts receivable, net 86.5 100.4 116.0 122.6 137.2 140.4 140.1 139.8 142.4 145.8 6 Cash and bank deposits 2.6 3.5 "I 7 Securities .9 1.3 \ 24.91 27.5 34.2 37.3 39.1 39.7 42.8 44.3 8 All other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 171.4 177.8 179.2 179.5 185.2 190.2 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 15.4 14.5 16.8 18.6 16.6 16.3 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 50.3 46.7 45.8 45.2 49.0 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 9.6 9.3 9.9 8.7 9.8 9.6 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 54.8 60.3 60.9 63.5 64.7 64.5 14 Other 11.5 12.6 14.2 14.3 17.8 18.9 20.5 18.7 22.8 24.0 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.8 24.5 24.5 24.2 26.0 26.7 16 Total liabilities and capital 104.3 122.4 140.9 150.1 171.4 177.8 179.2 179.5 185.2 190.2 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 AAAuuuggg... 333111,,, 111999888333''' June July Aug. June July Aug. June July Aug. 1 Total 83,574 789 396 1,817 25,341 23,387 29,882 24,552 22,991 28,065 2 Retail automotive (commercial vehicles) 17,540 599 503 1,052 1,675 1,615 2,184 1,076 1,112 1,132 3 Wholesale automotive 10,287 52 -239 1,039 7,468 6,363 8,285 7,416 6,602 7,246 4 Retail paper on business, industrial, and farm equipment 27,764 -98 -67 -320 1,331 1,220 1,385 1,429 1,287 1,705 5 Loans on commercial accounts receivable and factored commercial accounts receivable 9,562 -8 189 279 13,071 12,616 15,794 13,079 12,427 15,515 6 All other business credit 18,421 -244 10 -233 1,796 1,573 2,234 1,552 1,563 2,467 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • November 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 item LYSU Mar. Apr. May June July Aug/ Sept. 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 80.1 89.6 92.1 93.0 97.3 94.4 100.7 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 60.5 66.5 67.8 69.2 72.3 67.3 76.1 3 Loan/price ratio (percent) 73.2 74.8 76.6 76.8 74.2 77.5 76.9 76.5 73.3 78.3 4 Maturity (years) 28.2 27.7 27.6 24.2 26.9 26.8 27.3 28.1 25.7 27.5 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 2.21 2.09 2.44 2.43 2.54 1.96 2.51 6 Contract rate (percent per annum) 12.25 14.16 14.47 12.97 12.02 12.21 11.90 12.02 12.01 12.09 Yield (percent per annum) 7 FHLBB series5 12.65 14.74 15.12 13.41 12.42 12.67 12.36 12.50 12.38 12.57 8 HUD series4 13.95 16.52 15.79 13.17 13.02 13.09 13.37 14.00 13.90 13.60 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 13.44 16.31 15.31 12.68 12.50 12.41 12.96 14.23 13.78 13.55 10 GNMA securities6 12.55 15.29 14.68 11.87 11.76 11.72 12.09 12.54 13.01 12.73 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 55,104 58,675 66,031 73,666 73,554 74,116 74,669 74,630 75,057 75,174 12 FHA/VA-insured 37,365 39,341 39,718 38,409 37,901 37,669 37,376 37,092 36,894 36,670 13 Conventional 17,725 19,334 26,312 35,257 35,653 36,446 37,293 37,583 38,163 38,505 Mortgage transactions (during period) 14 Purchases 8,099 6,112 15,116 1,433 1,004 1,579 1,333 1,358 1,213 1,203 15 Sales 00 22 2 777777 558866 220044 8833 778866 1188 Mortgage commitments1 16 Contracted (during period) 8,083 9,331 22,105 1,184 1,023 1,534 2,506 1,198 1,282 2,739 17 Outstanding (end of period) 3,278 3,717 7,606 6,187 5,811 5,726 5,887 5,099 5,165 6,684 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 4,362 5,245 5,153 4,795 4,997 6,026 6,235 6,182 6,149 19 FHA/VA 2,116 2,236 1,921 995 990 984 982 971 964 20 Conventional 2,246 3,010 3,224 3,800 4,008 5,042 5,253 5,211 5,185 Mortgage transactions (during period) 21 Purchases 3,723 3,789 23,671 2,849 1,807 2,439 1,494 1,523 1,621 n a. 22 Sales 2,527 3,531 24,164 2,469 1,525 1,408 1,244 1,491 1,588 Mortgage commitments9 23 Contracted (during period) 3,859 6,974 28,187 1,438 3,079 2,334 2,358 4,671 6,367 24 Outstanding (end of period) 447 3,518 7,549 5,845 7,253 6,889 7,719 10,794 15,519 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associmajor institutional lender groups. Compiled by the Federal Home Loan Bank ation guaranteed, mortgage-backed, fully modified pass-through securities, as- Board in cooperation with the Federal Deposit Insurance Corporation. suming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying 2. Includes all fees, commissions, discounts, and "points" paid (by the the prevailing ceiling rate. Monthly figures are unweighted averages of Monday borrower or the seller) to obtain a loan. quotations for the month. 3. Average effective interest rates on loans closed, assuming prepayment at the 7. Includes some multifamily and nonprofit hospital loan commitments in end of 10 years. addition to 1- to 4-family loan commitments accepted in FNMA's free market 4. Average contract rates on new commitments for conventional first mort- auction system, and through the FNMA-GNMA tandem plans. gages, rounded to the nearest 5 basis points; from Department of Housing and 8. Includes participation as well as whole loans. Urban Development. 9. Includes conventional and government-underwritten loans. FHLMC's 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing mortgage commitments and mortgage transactions include activity under mort- Administration-insured first mortgages for immediate delivery in the private gage/securities swap programs, while the corresponding data for FNMA exclude secondary market. Any gaps in data are due to periods of adjustment to changes in swap activity. maximum permissible contract rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A39 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1982 1983 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998800 11998811 11998822 Q3 Q4 Ql Q2' Q3 1 All holders 1,471,786 1,583,264 1,654,667 1,632,161 1,654,667 1,682,634 1,724,476 1,775,725 2 1- to 4-family 986.979 1,065.294 1,112,343 1,097.507 1.112,343 1,134.538 1.160.353 1.195,105 3 Multifamily 137,134 136,354 136,725 136.508 136.725 137,938 142.286 145,896 4 Commercial 255,655 279,889 298.708 291,740 298,708 303,130 313,492 325,801 5 Farm 92,018 101,727 106,891 106,406 106.891 107,028 108,345 108,923 6 Major financial institutions 997,168 1,040,827 1.023.339 1.027.027 1.023.339 1.030.068 1,049,758 1,080,316 7 Commercial banks' 263,030 284,536 301.742 298,342 301.742 305.672 312,663 324.063 8 1- to 4-family 160,326 170,013 177.122 175,126 177.122 179,430 183,533 190.225 9 Multifamily 12,924 15.132 15,841 15.666 15.841 16,147 16.634 17.240 10 Commercial 81,081 91,026 100,269 99,050 100.269 101,575 103,898 107.686 11 Farm 8,699 8,365 8,510 8,500 8.510 8,520 8.598 8.912 12 Mutual savings banks 99,865 99,997 97,444 94,382 97,444 105.379 119,236 128.057 13 1- to 4-family 67,489 68,187 66.533 63.849 66.533 72,912 80.281 86.221 14 Multifamily 16,058 15,960 15.247 15.026 15,247 15,862 19.257 20.681 15 Commercial 16,278 15,810 15,635 15,479 15,635 16,577 19.650 21.104 16 Farm 40 40 29 28 29 28 48 51 17 Savings and loan associations 503,192 518,547 482,234 493,899 482,234 475,688 473.134 481,346 18 1- to 4-family 419,763 433,142 396.361 410,035 396.361 389.967 385,841 389,890 19 Multifamily 38,142 37,699 36,023 36,894 36.023 35.534 35,343 36,582 20 Commercial 45,287 47,706 49.850 46,970 49.850 50,187 51.950 54,874 21 Life insurance companies 131.081 137,747 141.919 140,404 141,919 143.329 144.725 146,850 22 1- to 4-family 17,943 17,201 16.743 16.865 16.743 16,855 15.834 15.607 23 Multifamily 19,514 19,283 18.847 18.967 18,847 19,076 18.738 18,852 2.4 Commercial 80,666 88,163 93,501 91,640 93,501 94,727 97.482 99.623 25 Farm 12,958 13,100 12.828 12.932 12,828 12,671 12.671 12,768 26 Federal and related agencies 114.300 126.094 138,185 134,409 138.185 140,028 142.111 142.606 27 Government National Mortgage Association 4,642 4,765 4,227 4,110 4.227 3,753 3,660 3.475 28 1- to 4-family 704 693 676 682 676 665 651 631 29 Multifamily 3,938 4,072 3,551 3,428 3.551 3.088 3.009 2.844 30 Farmers Home Administration 3,492 2,235 1,786 947 1,786 2,077 1.605 1,675 31 1- to 4-family 916 914 783 302 783 707 381 398 32 Multifamily 610 473 218 46 218 380 555 580 33 Commercial 411 506 377 164 377 337 248 258 34 Farm 1,555 342 408 435 408 653 421 439 35 Federal Housing and Veterans Administration 5,640 5,999 5.228 5,362 5,228 5,138 5,084 5,117 36 1- to 4-family 2,051 2,289 1.980 2,130 1,980 1,867 1,911 1.947 37 Multifamily 3,589 3,710 3,248 3,232 3.248 3.271 3,173 3,170 38 Federal National Mortgage Association 57,327 61,412 71,814 68,841 71.814 73.666 74,669 75,174 39 1- to 4-family 51,775 55,986 66,500 63,495 66.500 68.370 69.396 69.938 40 Multifamily 5,552 5.426 5.314 5,346 5.314 5.296 5.273 5.236 41 Federal Land Banks 38,131 46,446 50,350 49.983 50,350 50.544 50.858 51,040 42 1- to 4-family 2,099 2,788 3,068 3.029 3.068 3,059 3.030 3.012 43 Farm 36,032 43,658 47,282 46.954 47.282 47,485 47,828 48,028 44 Federal Home Loan Mortgage Corporation 5,068 5,237 4,780 5,166 4.780 4.850 6,235 6,125 45 1- to 4-family 3,873 5,181 4,733 5.116 4.733 4,795 6,119 6,005 46 Multifamily 1,195 56 47 50 47 55 116 120 47 Mortgage pools or trusts2 142.258 163.000 216,654 198,376 216.654 234,596 252.665 270,045 48 Government National Mortgage Association 93,874 105,790 118,940 114,776 118.940 127.939 139.276 149,612 49 1- to 4-family 91,602 103,007 115.831 11 1,728 115,831 124,482 135.628 145,692 50 Multifamily 2,272 2,783 3,109 3,048 3,109 3.457 3.648 3,920 51 Federal Home Loan Mortgage Corporation 16,854 19,853 42,964 35,132 42.964 48,008 50,934 54,342 52 1- to 4-family 13.471 19,501 42,560 34,739 42,560 47,575 50,446 53,690 53 Multifamily 3,383 352 404 393 404 433 488 652 54 Federal National Mortgage Association3 n.a. 717 14,450 8.133 14,450 18,157 20,933 23,819 55 1- to 4-family n.a. 717 14,450 8,133 14,450 18,157 20,933 23,819 56 Farmers Home Administration 31,530 36,640 40,300 40,335 40,300 40,492 41,522 42,272 57 1- to 4-family 16,683 18,378 20,005 20,079 20,005 20,263 20,728 21.103 58 Multifamily 2,612 3,426 4,344 4,344 4,344 4,344 4,343 4.421 59 Commercial 5,271 6,161 7.011 7,056 7.011 7,115 7,303 7,435 60 Farm 6,964 8,675 8,940 8.856 8,940 8,770 9,148 9,313 61 Individual and others4 218,060 253,343 276,489 272,349 276,489 277,942 279,942 282,758 62 1- to 4-family5 138,284 167,297 184,998 182.199 184,998 185,434 185,641 186,927 63 Multifamily 27,345 27,982 30.532 30,068 30,532 30,995 31,709 31,598 64 Commercial 26,661 30,517 32,065 31.381 32,065 32.612 32,961 34,821 65 Farm 25,770 27,547 28,894 28,701 28,894 28,901 29,631 29,412 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 individ- Digitized foura lFs.R ASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • November 1983 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Feb. Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 340,343 342,568 344,748 347,189 353,012 358,020 363,662 367,604 By major holder 2 Commercial banks 147,013 147,622 152,069 150,257 151,319 152,408 153,471 156,603 159,666 163,313 165,971 3 Finance companies .... 76,756 89,818 94,322 93,859 94,817 94,675 95,364 %,349 97,319 97,708 97,274 4 Credit unions 44,041 45,954 47,253 46,757 47,081 47,505 47,838 48,652 49,139 50,121 51,123 5 Retailers2 28,448 29,551 30,202 27,734 27,472 27,455 27,541 27,804 27,900 28,067 28,319 6 Savings and loans 9,911 11,598 13,891 14,860 15,083 15,551 15,842 16,207 16,369 16,615 17,130 7 Gasoline companies ... 4,468 4,403 4,063 3,780 3,669 3,980 3,943 4,159 4,356 4,457 4,338 8 Mutual savings banks .. 2,835 2,751 2,998 3,096 3,127 3,174 3,190 3,238 3,271 3,381 3,449 By major type of credit 9 Automobile 116,838 125,331 130,227 129,055 130,959 131,976 133,640 136,183 138,689 141,677 142,477 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 l a a n b p s e a r n ks... 6 2 3 1 6 5 , , , 5 3 2 0 3 3 3 3 6 2 3 58 4 3 , , , 0 3 7 8 7 0 1 5 6 2 5 3 8 3 5 , , , 8 6 1 5 7 7 1 3 8 57,97 ( ( 1 3 3 ) ) 58,5 ( 6 ( 7 3 3 ) ) 59,29 ( ( 13 3 ) ) 60,38 ( ( 4 3 3 ) ) 61,8 ( ( 70 3 3 ) ) 63,42 ( ( 5 3 3 ) ) 66,06 ( ( 5 3 3 ) ) 67,41 ( ( 3 3 3 ) ) 13 Credit unions 21,060 21,975 22,596 22,360 22,518 22,721 22,880 23,269 23,502 23,972 24,451 14 Finance companies .. 34,242 45,275 48,780 48,724 49,874 49,964 50,376 51,044 51,762 51,640 50,613 15 Revolving 58,352 62,819 67,184 63,372 63,091 63,521 63,459 64,899 65,856 66,913 67,904 16 Commercial banks... 29,765 32,880 36,688 35,481 35,533 35,651 35,536 36,515 37,173 37,973 38,848 17 Retailers 24,119 25,536 26,433 24,111 23,889 23,890 23,980 24,225 24,327 24,483 24,718 18 Gasoline companies . 4,468 4,403 4,063 3,780 3,669 3,980 3,943 4,159 4,356 4,457 4,338 19 Mobile home 17,322 18,373 18,988 19,374 19,379 19,400 19,448 19,647 19,750 19,882 20,087 20 Commercial banks... 10,371 10,187 9,684 9,806 9,739 9,624 9,581 9,651 9,717 9,741 9,766 21 Finance companies .. 3,745 4,494 4,965 4,960 4,967 4,970 4,976 4,995 4,982 5,012 5,038 22 Savings and loans ... 2,737 3,203 3,836 4,112 4,174 4,303 4,384 4,485 4,530 4,598 4,741 23 Credit unions 469 489 503 496 499 503 507 516 521 531 542 24 Other 120,960 125,174 128,399 128,542 129,139 129,851 130,642 132,283 133,725 135,190 137,136 25 Commercial banks... 45,341 46,474 46,846 46,999 47,480 47,842 47,970 48,567 49,351 49,534 49,944 26 Finance companies .. 38,769 40,049 40,577 40,175 39,976 39,741 40,012 40,310 40,575 41,056 41,623 27 Credit unions 22,512 23,490 24,154 23,901 24,064 24,281 24,451 24,867 25,116 25,618 26,130 28 Retailers 4,329 4,015 3,769 3,623 3,583 3,565 3,561 3,579 3,573 3,584 3,601 29 Savings and loans ... 7,174 8,395 10,055 10,748 10,909 11,248 11,458 11,722 11,839 12,017 12,389 30 Mutual savings banks 2,835 2,751 2,998 3,0% 3,127 3,174 3,190 3,238 3,271 3,381 3,449 Net change (during period)4 31 Total 1,448 18,217 2,418 735 2,582 2,271 2,696 4,406 4,840 3,388 2,375 By major holder 32 Commercial banks -7,163 607 1,111 788 1,354 1,186 1,540 2,422 2,766 2,317 1,829 33 Finance companies .... 8,438 13,062 1,024 -658 487 -520 362 470 909 239 -721 34 Credit unions -2,475 1,913 197 43 143 708 288 573 662 510 646 35 Retailers2 329 1,103 -91 36 422 147 169 368 272 5 245 36 Savings and loans 1,485 1,682 201 677 187 394 374 456 188 147 507 37 Gasoline companies ... 739 -65 -51 -200 -35 299 -51 77 5 65 -167 38 Mutual savings banks.. 95 -85 27 49 24 57 14 40 38 105 36 By major type of credit 39 Automobile 477 8,495 1,491 -233 1,221 689 1,313 1,973 2,421 2,521 285 4 4 4 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 l a a n b p s e a r n ks... - - -3 5 2 , , , 1 8 7 0 3 2 4 0 6 - - 2 3 - , , 8 5 4 5 9 5 8 7 5 4 5 9 2 2 8 9 7 3 ( ( 21 3 3 ) ) 2 ( ( 40 3 3 ) ) 6 ( ( 12 3 3 ) ) 1,0 ( ( 66 3 3 ) ) 1,2 ( ( 84 3 3 ) ) 1,4 ( ( 82 3 3 ) ) 2,35 ( ( 9 3 3 ) ) 1,2 ( ( 43 3 3 ) ) 43 Credit unions -1,184 914 89 15 68 341 137 275 328 232 309 44 Finance companies .. 7,491 11,033 875 -569 913 -264 110 414 611 -70 -1,267 45 Revolving 1,415 4,467 501 -135 1,177 917 514 1,210 821 313 479 46 Commercial banks... -97 3,115 650 61 786 468 373 806 556 217 404 47 Retailers 773 1,417 -98 4 426 150 192 327 260 31 242 48 Gasoline companies . 739 -65 -51 -200 -35 299 -51 77 5 65 -167 49 Mobile home 483 1,049 -37 204 -61 22 17 151 141 70 150 50 Commercial banks... -276 -186 -74 26 -95 -99 -86 28 68 -14 8 51 Finance companies .. 355 749 -15 59 -23 8 1 -6 7 15 1 52 Savings and loans ... 430 466 49 120 54 107 98 123 59 64 134 53 Credit unions -25 20 3 -1 3 6 4 6 7 5 7 54 Other -927 4,206 463 899 245 643 852 1,072 1,457 484 1,461 55 Commercial banks... -960 1,133 8 380 423 205 187 304 660 -245 174 56 Finance companies .. 592 1,280 164 -148 -403 -264 251 62 291 294 545 57 Credit unions -1,266 975 105 29 72 361 147 292 327 273 330 58 Retailers -444 -314 7 32 -4 -3 -23 41 12 -26 3 59 Savings and loans ... 1,056 1,217 152 557 133 287 276 333 129 83 373 60 Mutual savings banks 95 -85 27 49 24 57 14 40 38 105 36 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 A41 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1983 IItteemm 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks1 i1 14.30 16.54 16.83 13.90 13.50 15.47 18.09 18.65 16.57 16.28 3 14.99 17.45 18.05 15.84 15.58 4 1177..3311 1177..7788 1188..5511 1188..7799 1188..7755 Auto finance companies New car 14.82 16.17 16.15 12.07 11.90 11.94 11.57 11.84 12.77 13.62 6 Used car 19.10 20.00 20.75 19.38 18.91 18.76 18.58 18.28 18.25 18.21 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 45.9 45.8 45.4 45.6 45.7 45.9 46.2 8 Used car 34.8 35.8 34.0 37.7 37.7 37.9 38.0 38.0 38.0 38.0 Loan-to-value ratio 9 New car 87.6 86.1 85.3 84.0 86.0 86.0 87 87 87 87 10 Used car 94.2 91.8 90.3 91.0 91.0 92.0 92 93 93 93 Amount financed (dollars) 11 New car 6,322 7,339 8,178 8,829 8,662 8,572 8,512 8,642 8,724 8,792 12 Used car 3,810 4,343 4,746 4,802 4,869 4,984 5,039 5,052 5,103 5,144 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

A42 Domestic Nonfinancial Statistics • November 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 1983 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 434.8 504.9 By sector and instrument 2 U.S. government 56.8 53.7 37.4 79.2 87.4 161.3 92.5 87.8 86.9 106.9 215.5 230.2 3 Treasury securities 57.6 55.1 38.8 79.8 87.8 162.1 93.1 88.3 87.3 108.3 215.9 230.2 4 Agency issues and mortgages -.9 -1.4 -1.4 -.6 -.5 -.9 -.6 -.5 -.4 -1.4 -.4 -.1 5 Private domestic nonfinancial sectors 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 274.7 6 Debt capital instruments 171.1 199.7 211.2 192.0 158.4 152.4 189.9 179.3 137.5 139.7 166.1 222.7 7 Tax-exempt obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 58.1 8 Corporate bonds 22.9 21.1 17.3 26.7 22.1 18.8 20.7 26.1 18.0 10.8 26.9 20.9 9 Mortgages 126.3 150.2 163.6 135.1 114.5 83.0 137.3 132.0 96.9 87.3 79.9 143.7 10 Home mortgages 94.0 112.2 120.0 96.7 75.9 56.6 99.2 92.6 59.2 55.8 58.6 110.2 11 Multifamily residential 7.1 9.2 7.8 8.8 4.3 1.3 9.6 4.9 3.7 4.2 -1.7 7.7 12 Commercial 18.1 21.7 23.9 20.2 24.6 20.0 20.9 25.2 23.9 21.4 18.6 22.5 13 Farm 7.1 7.2 11.8 9.3 9.7 5.2 7.6 9.3 10.1 5.9 4.4 3.3 14 Other debt instruments 91.6 116.5 137.5 72.0 131.5 81.6 88.8 125.3 137.6 110.1 53.2 52.0 15 Consumer credit 40.2 48.8 45.4 4.9 24.1 18.3 13.0 28.9 19.3 19.3 17.4 38.8 16 Bank loans n.e.c 27.1 37.4 51.2 36.7 54.7 54.4 59.7 45.5 63.9 70.1 38.8 14.0 17 Open market paper 2.9 5.2 11.1 5.7 19.2 -3.3 -9.2 12.0 26.3 6.5 -13.0 -16.3 18 Other 21.3 25.1 29.7 24.8 33.4 12.2 25.3 38.9 28.0 14.3 10.2 15.6 19 By borrowing sector 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 274.7 20 State and local governments 15.4 19.1 20.5 20.3 9.7 36.3 21.7 9.1 10.2 29.3 43.3 47.8 21 Households 137.3 169.4 176.4 117.5 120.6 86.3 121.3 139.8 101.3 87.6 86.1 154.6 22 Farm 12.3 14.6 21.4 14.4 16.3 9.0 12.8 20.1 12.5 9.0 9.1 -.6 23 Nonfarm noncorporate 28.0 32.4 34.4 33.7 39.6 29.8 40.6 39.8 39.5 34.6 24.9 34.6 24 Corporate 69.7 80.6 96.0 78.1 103.7 72.7 82.3 95.8 111.5 89.3 56.0 38.2 25 Foreign net borrowing in United States 13.5 33.8 20.2 27.2 27.2 15.7 26.7 31.9 22.5 12.8 18.6 17.7 26 Bonds 5.1 4.2 3.9 .8 5.4 6.6 -.4 3.3 7.6 2.4 10.8 4.4 27 Bank loans n.e.c 3.1 19.1 2.3 11.5 3.7 -6.2 18.5 3.1 4.2 -5.1 -7.2 11.8 28 Open market paper 2.4 6.6 11.2 10.1 13.9 10.7 4.5 20.6 7.1 12.5 9.0 -3.7 29 U.S. government loans 3.0 3.9 2.9 4.7 4.2 4.5 4.0 4.9 3.5 3.0 6.0 5.2 30 Total domestic plus foreign 332.9 403.6 406.2 370.4 404.4 411.0 397.9 424.4 384.5 369.6 453.4 522.6 Financial sectors 31 Total net borrowing by financial sectors 45.8 74.6 82.5 63.3 85.4 69.3 64.0 87.4 83.4 89.8 48.7 71.9 By instrument 32 U.S. government related 22.0 37.1 47.9 44.8 47.4 64.9 40.4 45.2 49.6 61.3 68.4 67.3 33 Sponsored credit agency securities 7.0 23.1 24.3 24.4 30.5 14.9 20.8 28.9 32.1 23.6 6.3 -2.5 34 Mortgage pool securities 16.1 13.6 23.1 19.2 15.0 49.5 18.6 14.9 15.1 37.0 62.1 69.8 35 Loans from U.S. government -1.1 .4 .6 1.2 1.9 .4 1.1 1.4 2.4 .8 36 Private financial sectors 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 4.6 37 Corporate bonds 10.1 7.5 7.8 7.1 -.8 2.3 3.1 -.3 -1.4 -1.2 5.8 13.0 38 Mortgages * .1 * -.1 -.5 .1 -.2 -.8 -.2 .1 .1 .1 39 Bank loans n.e.c -.3 2.8 -.4 -.4 2.2 3.2 -.4 3.2 1.1 5.2 1.2 -4.2 40 Open market paper 9.6 14.6 18.0 4.8 20.9 -2.0 10.8 23.5 18.4 14.0 -18.0 8.6 41 Loans from Federal Home Loan Banks 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 By sector 42 Sponsored credit agencies 5.9 23.5 24.8 25.6 32.4 15.3 21.8 30.3 34.5 24.4 6.3 -2.5 43 Mortgage pools 16.1 13.6 23.1 19.2 15.0 49.5 18.6 14.9 15.1 37.0 62.1 69.8 44 Private financial sectors 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 4.6 45 Commercial banks 1.1 1.3 1.6 .5 .4 1.2 .3 .2 .5 .7 1.7 1.7 46 Bank affiliates 2.0 7.2 6.5 6.9 8.3 1.9 8.0 6.9 9.7 9.7 -5.8 6.1 47 Savings and loan associations 6.9 13.5 12.6 7.4 15.5 -3.0 12.3 16.8 14.1 9.1 -15.2 -10.1 48 Finance companies 16.9 18.1 16.6 6.3 14.1 4.9 5.8 18.5 9.7 9.5 .2 7.5 49 REITs -2.5 -1.4 -1.3 -2.2 .2 .1 -2.5 .2 .2 .1 .1 .1 All sectors 50 Total net borrowing 378.7 478.2 488.7 433.7 489.8 480.3 462.0 511.8 467.9 459.4 502.1 594.5 51 U.S. government securities 79.9 90.5 84.8 122.9 133.0 225.9 132.0 131.8 134.3 167.6 284.0 297.6 52 State and local obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 58.1 53 Corporate and foreign bonds 38.0 32.8 29.0 34.6 26.7 27.7 23.5 29.1 24.2 12.0 43.5 38.3 54 Mortgages 126.2 150.2 163.5 134.9 113.9 83.0 137.0 131.1 96.6 87.3 79.8 143.7 55 Consumer credit 40.2 48.8 45.4 4.9 24.1 18.3 13.0 28.9 19.3 19.3 17.4 38.8 56 Bank loans n.e.c 29.9 59.3 53.0 47.8 60.6 51.4 77.8 51.8 69.3 70.2 32.8 21.6 57 Open market paper 15.0 26.4 40.3 20.6 54.0 5.4 6.1 56.1 51.9 33.0 -22.1 -11.4 58 Other loans 27.5 41.9 42.4 37.8 55.8 17.9 40.7 61.8 49.7 28.4 7.4 7.9 External corporate equity funds raised in United States 59 Total new share issues 6.5 1.9 -3.8 22.2 -3.7 35.4 28.0 10.2 -17.7 23.7 47.0 80.8 60 Mutual funds .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.5 61 All other 5.6 1.9 -3.9 17.1 -10.6 16.8 23.3 2.1 -23.2 10.6 23.0 42.3 62 Nonfinancial corporations 2.7 -.1 -7.8 12.9 -11.5 11.4 18.8 .9 -23.8 7.0 15.8 32.3 63 Financial corporations 2.5 2.5 3.2 2.1 .9 4.1 2.3 .5 1.2 3.8 4.4 4.4 64 Foreign shares purchased in United States .4 -.5 .8 2.1 * 1.3 2.2 .7 -.7 -.2 2.9 5.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 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 1983 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997777 11997788 11997799 11998800 11998811 11998822 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic noniinancial sectors 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 434.8 504.9 By public agencies and foreign 2 Total net advances 79.3 102.3 75.2 97.0 97.4 109.3 77.2 113.8 81.0 107.9 110.8 123.1 3 U.S. government securities 34.9 36.1 -6.3 15.7 17.2 17.9 -.8 31.2 3.1 17.7 18.2 47.7 4 Residential mortgages 20.0 25.7 35.8 31.7 23.4 61.1 28.2 21.9 25.0 48.1 74.0 77.7 5 FHLB advances to savings and loans 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 6 Other loans and securities 20.2 28.0 36.5 42.4 40.6 29.5 39.4 44.1 37.1 31.7 27.4 10.6 Total advanced, by sector 7 U.S. government 10.0 17.1 19.0 23.7 24.1 16.7 22.2 27.9 20.3 14.2 19.1 8.8 8 Sponsored credit agencies 22.5 40.3 53.0 45.6 48.2 65.3 44.0 47.2 49.2 62.5 68.1 69.3 9 Monetary authorities 7.1 7.0 7.7 4.5 9.2 9.8 -10.3 2.4 16.0 .1 19.5 12.7 10 Foreign 39.6 38.0 -4.6 23.2 16.0 17.6 21.3 36.4 -4.4 31.1 4.1 32.3 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 22.0 37.1 47.9 44.8 47.4 64.9 40.4 45.2 49.6 61.3 68.4 67.3 12 Foreign 13.5 33.8 20.2 27.2 27.2 15.7 26.7 31.9 22.5 12.8 18.6 17.7 Private domestic funds advanced 13 Total net advances 275.6 338.4 379.0 318.2 354.4 366.6 361.2 355.7 353.1 323.0 411.0 466.8 14 U.S. government securities 45.1 54.3 91.1 107.2 115.9 207.9 132.7 100.6 131.1 149.9 265.8 249.9 15 State and local obligations 21.9 28.4 30.3 30.3 21.9 50.5 31.9 21.1 22.6 41.7 59.4 58.1 16 Corporate and foreign bonds 24.1 23.4 18.5 19.3 19.4 15.4 11.8 20.9 17.9 -1.7 32.4 23.4 17 Residential mortgages 81.0 95.6 91.9 73.7 56.7 -3.3 80.5 75.5 37.9 11.7 -17.2 40.1 18 Other mortgages and loans 107.8 149.3 156.3 94.8 156.9 96.8 114.5 154.3 159.5 131.7 62.0 82.5 19 LESS: Federal Home Loan Bank advances 4.3 12.5 9.2 7.1 16.2 .8 10.3 16.7 15.8 10.4 -8.8 -12.9 Private financial intermediation 20 Credit market funds advanced by private financial institutions 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 361.4 21 Commercial banking 87.8 129.0 123.1 101.1 103.6 108.5 146.5 99.6 107.6 109.7 107.1 140.9 22 Savings institutions 78.5 72.8 56.7 54.9 27.2 30.6 72.9 41.5 12.8 29.5 31.0 118.4 23 Insurance and pension funds 69.0 75.0 66.4 74.4 79.3 94.2 65.6 75.3 83.4 95.4 93.0 102.8 24 Other finance 23.6 25.5 48.5 32.0 95.2 37.9 -2.2 101.0 89.4 38.1 37.8 -.6 25 Sources of funds 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 361.4 26 Private domestic deposits and RPs 139.0 141.0 142.0 168.6 211.7 173.4 174.2 213.8 209.6 163.4 182.7 223.3 27 Credit market borrowing 23.8 37.5 34.6 18.5 38.0 4.4 23.6 42.2 33.8 28.5 -19.7 4.6 28 Other sources 96.1 123.8 118.1 75.2 55.5 93.5 85.0 61.3 49.8 80.8 105.9 133.6 29 Foreign funds 1.4 6.5 27.6 -21.7 -8.7 -27.7 -15.3 -8.7 -8.7 -30.1 -25.4 -23.1 30 Treasury balances 4.3 6.8 .4 -2.6 -1.1 6.1 1.0 6.5 -8.7 -2.1 14.1 7.0 31 Insurance and pension reserves 51.4 62.2 49.1 65.4 73.2 85.9 61.3 62.7 83.8 85.4 86.4 85.4 32 Other, net 39.0 48.4 41.0 34.0 -7.9 29.2 38.0 .8 -16.7 27.6 30.7 64.2 Private domestic nonfinancial investors 33 Direct lending in credit markets 40.6 73.6 118.9 74.4 87.2 99.7 102.0 80.6 93.8 78.7 122.4 110.0 34 U.S. government securities 24.6 36.3 61.4 38.3 47.4 58.1 58.6 37.2 57.6 43.1 72.7 72.8 35 State and local obligations -.8 3.6 9.9 7.0 9.6 30.9 9.2 9.5 9.7 28.4 33.4 41.4 36 Corporate and foreign bonds -3.2 -1.8 5.7 .6 -8.9 -9.4 -.2 -5.5 -12.4 -26.3 7.4 -2.3 37 Open market paper 9.6 15.6 12.1 -4.3 3.7 -2.0 1.4 -3.3 10.7 6.7 -10.7 -11.1 38 Other 10.4 19.9 29.8 32.9 35.4 22.1 32.9 42.7 28.2 26.8 19.6 9.2 39 Deposits and currency 148.6 152.2 151.4 180.0 221.7 179.4 185.5 222.6 220.7 166.2 192.1 243.2 40 Currency 8.3 9.3 7.9 10.3 9.5 8.4 9.7 8.0 11.0 4.5 12.3 14.7 41 Checkable deposits 17.2 16.2 18.7 5.0 18.1 13.0 9.9 29.8 6.5 6.7 19.1 61.3 42 Small time and savings accounts 93.6 65.9 59.2 83.1 47.2 137.0 90.2 30.7 63.6 95.1 178.6 305.8 43 Money market fund shares .2 6.9 34.4 29.2 107.5 24.7 -3.4 104.1 110.8 39.4 10.0 -84.0 44 Large time deposits 25.7 44.4 23.0 44.7 36.4 -5.2 69.8 41.6 31.2 21.2 -31.6 -73.5 45 Security RPs 2.2 7.5 6.6 6.5 2.5 3.8 7.8 7.7 -2.6 1.1 6.6 13.7 46 Deposits in foreign countries 1.3 2.0 1.5 1.1 .5 -2.4 1.7 .8 .2 -1.8 -2.9 5.2 47 Total of credit market instruments, deposits and currency 189.1 225.8 270.3 254.4 308.9 279.1 287.5 303.3 314.5 244.9 314.5 353.2 48 Public holdings as percent of total 23.8 25.3 18.5 26.2 24.1 26.6 19.4 26.8 21.1 29.2 24.4 23.6 49 Private financial intermediation (in percent) 93.9 89.3 77.7 82.4 86.1 74.0 78.3 89.2 83.0 84.4 65.4 77.4 50 Total foreign funds 41.0 44.6 23.0 1.5 7.3 -10.2 6.0 27.8 -13.1 1.0 -21.3 9.2 MEMO: Corporate equities not included above 51 Total net issues 6.5 1.9 -3.8 22.2 -3.7 35.4 28.0 10.2 -17.7 23.7 47.0 80.8 52 Mutual fund shares .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.5 53 Other equities 5.6 1.9 -3.9 17.1 -10.6 16.8 23.3 2.1 -23.2 10.6 23.0 42.3 54 Acquisitions by financial institutions 7.4 4.5 9.7 16.8 22.1 27.9 22.3 25.3 18.9 19.3 36.4 66.3 55 Other net purchases -.9 -2.7 -13.5 5.4 -25.9 7.5 5.7 -15.1 -36.6 4.4 10.6 14.5 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

A44 Domestic Nonfinancial Statistics • November 1983 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1983 MMeeaassuurree 11998800 11998811 11998822 Feb. Mar. Apr. May June July Aug. Sept. Oct. 1 Industrial production1 147.0 151.0 138.6 138.1 140.0 142.6 144.4 146.4 149.7' 151.7 153.6 154.8 Market groupings 2 Products, total 146.7 150.6 141.8 140.3 141.6 144.5 146.2 148.1 150.9' 153.0 154.7 155.9 3 Final, total 145.3 149.5 141.5 138.9 139.9 142.8 144.5 146.4 149.C 150.6 152.5 153.8 4 Consumer goods 145.4 147.9 142.6 143.4 144.3 147.7 150.4 152.4 154.8' 156.1 157.8 158.2 5 Equipment 145.2 151.5 139.8 132.7 133.8 136.2 136.5 138.2 141.C 143.1 145.1 147.8 6 Intermediate 151.9 154.4 143.3 145.3 147.8 150.8 152.2 154.5 158.1' 161.7 163.2 163.9 7 Materials 147.6 151.6 133.7 134.9 137.6 139.7 141.7 143.7 147.8' 149.6 151.7 153.0 Industry groupings 8 Manufacturing 146.7 150.4 137.6 138.2 140.4 143.1 145.1 147.4 150.6' 152.6 154.8 156.2 Capacity utilization (percent)1'2 9 Manufacturing 79.6 79.4 71.1 70.6 71.6 72.9 73.8 74.9 76.4' 77.3' 78.3' 78.9 10 Industrial materials industries 80.4 80.7 70.1 70.1 71.5 72.5 73.5 74.4 76.5' 77.4' 78.4' 78.9 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 119.0 131.0 129.0 148.0 151.0 137.0 146.0 143.0' n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 134.9 135.0 135.4 135.9 136.5 137.0 136.4 137.9' 138.4 13 Goods-producing, total 110.1 109.4 102.6 98.9 98.8 99.4 100.2 100.9 101.8 102.2 102.7' 103.7 14 Manufacturing, total 104.3 103.7 96.9 93.8 93.9 94.5 95.1 95.6 96.3 96.6 97.1' 97.9 15 Manufacturing, production-worker ... 99.3 98.0 89.4 86.0 86.1 86.9 87.6 88.2 89.2 89.5' 89.9' 91.1 16 Service-producing 152.4 154.4 154.7 154.6 154.8 155.2 155.5 156.1 156.3 155.1 157.2' 157.4 17 Personal income, total 343.7 386.5 409.3 420.7 423.8 426.8' 431.6 433.7 436.1 437.4' 441.4' n.a. 18 Wages and salary disbursements 317.7 349.7 367.2 376.2 378.6 382.2 386.9 389.0 391.9 393.6' 395.8' n.a. 19 Manufacturing 264.4 287.3 286.2 286.9 289.3 293.4 296.4 299.2 302.6 304.5' 307.8' n.a. 20 Disposable personal income5 333.8 373.7 397.3 410.3 413.7 417.4 420.5 422.0 429. C 430.0' 434.1' n.a. 21 Retail sales" 303.8 330.6 326.0 348.3 356.4 364.7 376.1 378.9 380.3 373.7' 387.7' 382.8 Prices7 22 Consumer 246.8 272.4 289.1 293.2 293.4 295.5 297.1 298.1 299.3 300.3 301.8' n.a. 23 Producer finished goods 247.0 269.8 280.7 284.1 283.4 283.0 284.3 285.0 285.7 286.2 285.1' 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 Q4 Q1 Q2 Q3' Q4 Q1 Q2' Q3 Q4 Ql Q2 Q3' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 135.3 138.5 144.5 151.7 193.7 194.6 195.5 196.4 69.8 71.2 73.9 77.2 2 Mining 117.0 116.7 112.3 116.2 165.1 165.2 165.3 165.4 70.9 70.6 67.9 70.3 3 Utilities 166.2 163.6 169.6 177.3 207.4 208.5 209.8 211.1 80.1 78.5 80.8 84.0 4 Manufacturing 134.5 138.4 145.2 152.7 194.8 195.7 196.6 197.5 69.0 70.7 73.8 77.3 5 Primary processing 129.3 137.0 145.2 152.5 193.7 194.3 194.8 195.3 66.8 70.5 74.6 78.1 6 Advanced processing 137.3 139.7 145.1 152.7 195.4 196.5 197.6 198.6 70.2 71.1 73.5 76.9 7 Materials 128.7 134.8 141.7 149.7 191.7 192.3 192.9 193.4 67.1 70.1 73.5 77.4 8 Durable goods 117.1 125.2 134.7 144.1 194.8 195.2 195.6 196.0 60.2 64.2 68.9 73.6 9 Metal materials 66.5 78.6 84.9 89.6 140.3 140.2 139.9 139.8 47.4 56.1 60.7 64.2 10 Nondurable goods 157.0 163.7 171.7 178.6 216.9 217.8 218.8 219.6 72.4 75.2 78.5 81.3 11 Textile, paper, and chemical 160.8 169.3 179.6 186.9 228.3 229.4 230.7 231.6 70.5 73.8 77.9 80.7 12 Paper 147.6 149.9 153.4 161.8 164.4 165.3 166.1 166.9 89.7 90.7 92.3 96.9 13 Chemical 191.9 204.7 219.4 226.3 292.8 294.8 296.6 298.3 65.5 69.4 74.0 75.9 14 Energy materials 121.5 122.2 121.5 127.5 153.3 153.9 154.3 154.7 79.2 79.5 78.7 82.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A45 2.11 Continued Previous cycle1 Latest cycle2 1982 1983 SSeerriieess High Low High Low Oct. Feb. Mar. Apr. May June July' Aug/ Sept/ Oct. Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 76.5 70.1 71.0 71.8 73.1 73.9 74.8 76.3 77.2 78.1 78.6 16 Mining 91.8 86.0 88.5 84.0 70.3 69.9 68.1 67.5 68.2 68.1 69.5 70.3 70.9 71.6 17 Utilities 94.9 82.0 86.7 83.8 81.0 77.7 79.4 80.9 80.9 80.8 83.5 85.0 83.4 82.4 18 Manufacturing 87.9 69.0 87.5 75.5 69.4 70.6 71.6 72.9 73.8 74.9 76.4 77.3 78.3 78.9 19 Primary processing 93.7 68.2 91.4 72.6 67.6 70.8 72.1 73.4 74.6 75.7 77.1 78.0 79.2 79.6 20 Advanced processing .... 85.5 69.4 85.9 77.0 70.3 70.8 71.5 72.5 73.4 74.4 76.0 76.8 77.8 78.3 21 Materials 92.6 69.3 88.9 74.2 67.9 70.1 71.5 72.5 73.5 74.4 76.5 77.4 78.4 78.9 22 Durable goods 91.4 63.5 88.4 68.4 60.9 64.2 66.0 67.7 68.9 70.0 72.1 73.5 75.1 76.1 23 Metal materials 97.8 68.0 95.4 59.4 49.3 56.1 58.8 59.9 61.0 61.2 62.3 64.0 66.2 67.9 24 Nondurable goods 94.4 67.4 91.7 77.5 73.1 75.3 76.8 77.2 78.7 79.6 80.7 80.9 82.3 82.5 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 70.9 74.1 75.8 76.4 78.1 79.2 80.4 80.3 81.3 81.7 26 Paper 99.4 72.4 97.9 89.8 90.7 90.8 90.3 91.0 92.9 93.1 96.7 96.7 97.4 n.a. 27 Chemical 95.5 64.2 91.3 70.7 65.7 69.9 71.9 72.6 74.0 75.3 75.9 75.3 76.5 n.a. 28 Energy materials 94.5 84.4 88.7 84.4 80.0 79.2 79.2 78.9 78.5 78.8 82.6 82.9 81.6 81.3 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 Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 175,996 176,151 176,320 176,498 176,648 176,811 176,990 2 Labor force (including Armed Forces)1 109,042 110,812 112,384 112,988 112,947 114,127 114,067 114,469 114,577 114,026 3 Civilian labor force 106,940 108,670 110,204 110,786 110,749 111,932 111,875 112,261 112,368 111,815 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 96,088 96,190 97,264 97,758 98,074 98,655 98,726 5 Agriculture 3,364 3,368 3,401 3,371 3,367 3,522 3,527 3,489 3,290 3,202 Unemployment 6 Number 7,637 8,273 10,678 11,328 11,192 11,146 10,590 10,699 10,423 99,,888866 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.2 10.1 10.0 9.5 9.5 9.3 88..88 8 Not in labor force 60,805 61,460 62,067 63,008 63,204 62,193 62,431 62,179 62,234 62,964 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,406 91,156 89,596 89,101 89,421 89,844' 90,152' 89,735' 90,753' 91,073 10 Manufacturing 20,285 20,170 18,853 18,376 18,493 18,582' 18,733' 18,793' 18,876' 19,040 11 Mining 1,027 1,132 1,122 997 994 1,003' 1,017' 1,023' 1,027' 1,038 12 Contract construction 4,346 4,176 3,912 3,786 3,860 3,933' 3,974' 4,014' 4,040' 4,089 13 Transportation and public utilities 5,146 5,157 5,057 4,988 4,993 4,992' 4,984' 4,341' 5,027' 5,034 14 Trade 20,310 20,551 20,547 20,329 20,356 20,494' 20,529' 20,580' 20,613' 20,669 15 Finance 5,160 5,301 5,350 5,423 5,435 5,451 5,465' 5,488 5,496' 5,501 16 Service 17,890 20,547 20,401 19,478 19,546 19,668' 19,77(K 19,835' 19,921' 20,024 17 Government 16,241 16,024 15,784 15,724 15,744 15,721' 15,680' 15,661' 15,753' 15,678 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

A46 Domestic Nonfinancial Statistics • November 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1982 1983 pro- 11998822 por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Aug. Sept.P Index (1967 = 100) MAJOR MARKET 100.00 1 Total index 138.6 135.7 134.9 135.2 137.4 138.1 140.0 142.6 144.4 146.4 149.7 151.7 153.6 2 Products 60.71 141.8 139.3 139.0 139.9 140.9 140.3 141.6 144.5 146.2 148.1 150.9 153.0 154.7 3 Final products 47.82 141.5 138.7 138.3 139.5 140.1 138.9 139.9 142.8 144.5 146.4 149.0 150.6 152.5 4 Consumer goods 27.68 142.6 142.2 141.3 142.0 143.6 143.4 144.3 147.7 150.4 152.4 154.8 156.1 157.8 5 Equipment 20.14 139.8 134.0 134.2 136.1 135.3 132.7 133.8 136.2 136.5 138.2 141.0 143.1 145.1 6 Intermediate products 12.89 143.3 141.6 141.8 141.5 143.7 145.3 147.8 150.8 152.2 154.5 158.1 161.7 163.2 7 Materials 39.29 133.7 130.0 128.4 127.8 132.0 134.9 137.6 139.7 141.7 143.7 147.8 149.6 151.7 Consumer goods 8 Durable consumer goods 7.89 129.2 126.5 124.6 125.9 131.6 134.4 136.3 140.5 145.5 149.2 152.9 154.0 157.9 9 Automotive products 2.83 129.5 123.6 120.7 128.7 136.2 144.3 142.6 144.9 152.2 160.0 167.0 167.5 173.4 10 Autos and utility vehicles 2.03 99.0 89.6 86.9 99.0 107.0 120.8 116.4 117.8 124.9 135.4 145.4 147.0 153.1 11 Autos 1.90 86.6 79.5 77.7 87.9 97.1 107.3 99.9 102.7 107.4 118.3 129.8 132.0 135.0 12 Auto parts and allied goods .80 206.9 210.0 206.6 204.0 210.2 203.9 209.3 213.6 221.5 222.6 221.9 219.7 224.8 13 Home goods 5.06 129.1 128.1 126.8 124.3 129.1 128.8 132.8 138.1 141.8 143.2 144.9 146.4 149.3 14 Appliances, A/C, and TV 1.40 102.6 106.1 104.8 94.2 109.5 105.8 105.0 106.1 112.8 114.4 116.2 121.2 126.1 15 Appliances and TV 1.33 104.6 110.5 108.4 98.3 112.9 108.8 108.5 109.7 116.1 118.4 119.7 125.0 130.7 16 Carpeting and furniture 1.07 149.7 151.9 151.4 150.8 149.0 156.7 168.3 180.5 181.9 185.6 187.3 187.1 187.3 17 Miscellaneous home goods 2.59 135.0 130.1 128.6 129.8 131.4 129.7 133.3 137.9 140.9 141.3 143.0 143.3 146.2 18 Nondurable consumer goods 19.79 148.0 148.5 147.9 148.4 148.3 147.0 147.5 150.5 152.3 153.6 155.6 156.9 157.8 19 Clothing 4.29 20 Consumer staples 15.50 159.0 159.1 158. I 158.8 158.6 157.4 158.'l 161.1 162.8 164.3 166.1 167.7 168.5 ?1 8.33 149.7 150.2 149.0 149.5 150.9 149.5 148.4 150.9 153.2 155.9 156.6 156.1 22 Nonfood staples 7.17 169.7 169.5 168.7 169.6 167.6 166.5 169.4 172.9 174.0 174.1 177.2 181.2 181.8 23 Consumer chemical products .... 2.63 219.9 220.0 218.9 220.9 222.6 220.9 225.6 225.5 227.8 229.0 233.8 239.2 241.4 24 Consumer paper products 1.92 127.7 125.3 125.1 128.3 127.1 127.9 128.1 129.2 128.6 130.1 132.6 136.4 137.9 25 Consumer energy products 2.62 150.2 151.1 150.2 148.4 142.2 140.2 143.3 152.2 153.4 151.2 153.2 155.7 154.1 2266 11..4455 117700..88 116699..11 117711..55 116699..33 116644..11 116622..99 116666..11 117755..55 117744..33 117700..55 117733..22 117799..99 Equipment 27 Business 12.63 157.9 147.1 146.4 148.1 146.6 142.7 143.7 146.9 147.7 150.2 153.3 156.5 158.8 28 Industrial 6.77 134.9 118.3 117.2 117.9 118.4 113.7 113.1 113.5 114.5 116.3 119.9 124.2 125.9 29 Building and mining 1.44 214.2 169.3 165.7 171.9 173.8 153.6 145.3 141.8 146.2 148.7 154.4 159.2 162.1 30 Manufacturing 3.85 107.2 98.0 97.5 97.0 97.6 97.9 99.7 101.7 102.5 105.0 108.9 113.5 115.1 31 Power 1.47 129.9 121.0 121.0 119.7 118.3 116.0 116.2 116.6 115.0 114.1 114.6 118.0 118.5 32 Commercial transit, farm 5.86 184.4 180.5 180.2 183.0 179.2 176.1 179.2 185.4 186.1 189.5 191.9 193.8 196.8 33 Commercial 3.26 253.5 253.5 254.8 258.6 254.9 251.2 255.7 264.3 265.0 270.9 276.0 277.0 281.1 34 Transit 1.93 103.9 93.2 92.3 96.2 90.8 88.2 90.1 92.0 92.6 93.2 92.0 95.9 97.4 35 Farm .67 80.5 76.8 70.7 65.1 66.0 63.4 63.4 70.2 71.3 70.4 70.8 70.8 73.1 36 Defense and space 7.51 109.4 111.9 113.6 115.9 116.4 116.1 117.0 118.2 117.6 118.0 120.4 120.7 122.0 Intermediate products 37 Construction supplies 6.42 124.3 122.5 123.4 123.0 127.0 129.7 133.1 136.4 138.4 142.1 145.8 149.2 150.7 38 Business supplies 6.47 162.1 160.5 160.1 159.8 160.3 160.9 162.3 165.2 166.0 166.8 170.4 174.1 175.6 39 Commercial energy products 1.14 181.1 180.4 182.4 182.4 180.6 178.6 180.3 183.3 183.1 181.4 185.2 185.8 185.2 Materials 40 Durable goods materials 20.35 125.0 118.5 116.4 116.5 121.5 125.3 128.7 132.4 134.7 137.0 141.1 144.1 147.2 41 Durable consumer parts 4.58 95.3 91.4 90.0 91.1 96.2 101.6 104.0 106.5 108.5 109.5 115.6 119.4 123.0 42 Equipment parts 5.44 166.8 155.4 155.1 155.3 157.5 158.8 162.5 167.2 170.6 175.8 180.8 183.6 185.9 43 Durable materials n.e.c 10.34 116.2 111.1 107.7 107.4 113.8 118.2 121.9 125.4 127.5 128.7 131.5 134.2 137.6 44 Basic metal materials 5.57 79.9 73.0 69.1 68.7 78.1 82.4 86.0 87.8 89.3 89.6 90.8 93.1 96.0 45 Nondurable goods materials 10.47 157.5 158.2 157.3 155.6 159.7 164.0 167.5 168.7 172.1 174.3 177.0 177.7 181.0 46 Textile, paper, and chemical materials 7.62 161.1 161.5 161.0 160.0 163.7 170.0 174.3 175.9 180.2 182.8 186.1 186.0 188.6 47 Textile materials 1.85 102.2 104.4 102.5 102.1 104.7 106.4 110.6 110.6 114.6 116.0 119.0 121.3 121.9 48 Paper materials 1.62 145.6 148.9 149.7 144.1 150.1 150.1 149.5 150.8 154.4 155.0 161.1 161.4 162.8 49 Chemical materials 4.15 193.5 192.0 191.6 192.0 195.4 206.2 212.5 214.9 219.6 223.6 225.9 224.6 228.5 50 Containers, nondurable 1.70 161.4 164.9 160.8 155.2 162.1 159.6 163.8 163.2 164.3 166.1 166.5 170.6 179.3 51 Nondurable materials n.e.c 1.14 127.9 125.5 127.4 127.2 129.6 130.5 127.7 129.1 129.7 129.9 131.3 133.0 132.6 52 Energy materials 8.48 125.1 122.6 121.4 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.3 126.4 53 Primary energy 4.65 116.0 114.4 113.7 113.5 116.5 115.4 114.4 113.9 113.8 112.6 115.4 114.2 112.8 54 Converted fuel materials 3.82 136.3 132.6 130.8 128.9 130.8 129.6 131.1 131.0 129.9 132.9 142.7 145.4 143.0 Supplementary groups 55 Home goods and clothing 9.35 119.6 119.9 119.6 118.2 120.8 119.9 122.0 126.3 129.2 130.2 132.3 133.4 135.5 56 Energy, total 12.23 135.7 134.1 133.3 132.2 132.4 131.0 131.9 133.9 133.8 133.6 138.5 139.5 137.8 57 Products 3.76 159.6 160.0 160.0 158.7 153.8 151.9 154.5 161.7 162.4 160.4 162.9 164.9 163.6 58 Materials 8.48 125.1 122.6 121.4 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.3 126.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1982 1983 Grouping c S o I d C e por- a 1 v 98 g 2 . tion Oct. Nov. Dec. Jan. Feb.c Mar. Apr. May June July Aug. Sept.P Oct.'' Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 146.3 140.4 140.4 140.1 141.3 137.5 137.7 138.9 139.7 139.6 143.8 146.1 145.2 145.1 2 Mining 6.36 126.1 115.9 116.8 118.4 121.9 115.6 112.6 111.6 112.8 112.6 115.0 116.3 117.4 118.5 3 Utilities 5.69 168.7 167.8 166.7 164.2 163.1 162.0 165.8 169.3 169.7 169.8 176.0 179.5 176.4 174.8 4 Electric 3.88 190.5 188.4 188.3 185.6 184.4 183.0 188.2 192.7 192.9 192.0 200.9 205.7 201.2 198.7 5 Manufacturing 87.95 137.6 135.0 134.0 134.5 136.7 138.2 140.4 143.1 145.1 147.4 150.6 152.6 154.8 156.2 6 Nondurable 35.97 156.2 156.2 155.3 155.6 157.4 159.0 160.7 163.3 165.4 167.8 170.6 172.5 173.9 174.6 7 Durable 51.98 124.7 120.3 119.3 119.9 122.5 123.9 126.3 129.1 131.0 133.2 136.8 138.7 141.6 143.5 Mining 8 Metal 10 .51 82.4 63.1 70.4 74.9 81.7 75.1 75.2 79.8 84.4 82.9 82.5 80.9 80.1 9 Coal 11.12 .69 142.7 143.2 134.1 129.7 144.8 136.5 127.3 125.3 125.6 124.6 139.9 141.2 140.5 142.7 10 Oil and gas extraction ... 13 4.40 131.1 119.1 120.3 122.9 124.6 117.0 114.4 112.2 112.5 112.6 113.9 115.0 116.3 117.5 11 Stone and earth minerals. 14 .75 112.1 108.5 111.9 111.7 112.8 115.7 114.0 117.7 122.5 121.7 121.2 125.0 127.9 Nondurable manufactures 12 Foods 20 8.75 151.1 151.5 152.0 152.8 154.4 153.0 152.0 153.7 155.6 157.7 159.9 159.0 13 Tobacco products 21 .67 118.0 110.6 113.0 109.9 104.7 108.5 113.4 114.8 112.9 120.0 112.9 118.6 14 Textile mill products 22 2.68 124.5 125.9 123.1 122.2 125.8 130.7 131.9 136.6 139.6 141.8 146.7 147.5 147.7 15 Apparel products 23 3.31 16 Paper and products 26 3.21 150.8 155.0 154.5 151.1 158.8 155.6 156.3 157.0 161.5 163.0 165.1 168.2 168.5 168.0 17 Printing and publishing 27 4.72 144.1 142.0 141.7 142.8 141.3 144.0 145.9 145.7 145.2 147.4 152.0 156.3 158.6 160.9 18 Chemicals and products 28 7.74 196.1 194.1 192.8 195.9 197.6 202.3 205.7 208.5 211.0 214.7 218.3 220.4 222.1 19 Petroleum products 29 1.79 121.8 123.8 120.0 118.7 113.5 111.7 114.8 120.6 123.8 123.0 124.3 122.9 126.5 123.7 20 Rubber and plastic products. 30 2.24 254.7 256.3 250.2 249.7 256.2 264.0 272.0 283.0 288.0 293.8 296.1 304.9 309.3 21 Leather and products 31 .86 60.9 59.5 57.7 56.0 59.5 61.7 59.4 58.7 59.6 60.1 62.3 64.4 65.1 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 89.5 91.9 92.5 93.5 93.3 91.9 93.2 92.6 93.3 95.2 96.8 98.5 99.8 23 Lumber and products 24 1.64 112.6 117.2 119.1 121.4 130.0 130.2 128.7 132.1 135.8 137.4 141.3 141.6 141.5 24 Furniture and fixtures 25 1.37 151.9 154.3 152.4 153.7 150.0 154.0 161.0 167.7 169.6 173.1 175.2 179.0 179.8 25 Clay, glass, stone products 32 2.74 128.2 128.1 127.3 125.4 128.0 131.8 135.6 138.3 139.2 141.7 145.8 148.2 151.4 26 Primary metals 33 6.57 75.3 69.6 63.6 63.5 73.1 77.9 81.2 83.1 84.9 84.8 85.5 87.2 91.3 94.1 27 Iron and steel 331.2 4.21 61.7 54.1 47.5 46.6 59.0 64.3 66.9 68.5 69.5 69.7 71.8 75.1 78.1 28 Fabricated metal products 34 5.93 114.8 107.6 107.0 107.3 107.6 110.3 113.9 115.3 115.5 118.5 122.7 126.0 128.2 129.3 29 Nonelectrical machinery .. 35 9.15 149.0 140.4 139.6 139.2 138.0 136.2 138.6 143.1 146.1 149.5 154.2 157.2 158.5 161.9 30 Electrical machinery 36 8.05 169.3 165.4 165.5 165.5 169.5 168.9 173.8 177.2 180.1 182.4 188.3 189.2 194.4 198.1 31 Transportation equipment 37 9.27 104.9 100.8 100.2 103.7 106.3 109.6 110.1 111.4 113.8 116.6 119.7 121.1 124.7 125.6 32 Motor vehicles and parts 371 4.50 109.8 103.0 101.7 108.8 113.9 123.0 123.2 125.5 130.4 136.2 142.3 144.3 150.7 151.1 33 Aerospace and miscellaneous transportation equipment. 372-9 4.77 100.4 98.6 98.7 98.9 99.1 97.0 97.7 98.1 98.1 98.1 98.5 99.2 100.1 101.5 34 Instruments 38 2.11 161.9 157.4 155.8 155.2 154.5 153.4 154.0 155.1 156.0 156.1 159.3 161.6 163.5 163.7 35 Miscellaneous manufactures 39 1.51 137.0 129.6 129.5 128.2 131.3 133.9 136.9 145.0 149.0 151.0 153.7 153.1 154.0 155.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 579.6 570.0 568.4 572.9 578.1 578.4 584.1 592.6 601.8 610.5 620.5 624.8 633.3 638.1 37 Final 390.9 451.1 442.8 441.3 445.8 448.3 447.3 451.3 457.7 465.6 471.8 478.2 481.0 488.6 492.0 38 Consumer goods . 277.5 308.0 306.6 305.6 306.8 310.9 312.0 313.8 318.8 325.6 330.4 333.7 335.8 340.3 340.3 39 Equipment 113.4 143.1 136.2 135.7 138.9 137.4 135.3 137.5 138.9 140.0 141.4 144.5 145.2 148.3 151.7 40 Intermediate 116.6 128.5 127.2 127.1 127.1 129.8 131.1 132.8 134.9 136.2 138.7 142.3 143.8 144.7 146.2 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • November 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June July Aug/ Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 1,001 1,326 1,447 1,479 1,467 1,536 1,635 1,761 1,782 1,652 1.504 2 1-family 710 564 546 753 866 835 859 841 940 1,013 920 874 829 3 2-or-more-famiIy 480 421 454 573 581 644 608 695 695 748 862 778 675 4 Started 1,292 1,084 1,062 1,280 1,694 1,784 1,605 1,506 1,807 1,736 1,804' 1,909 1,652 5 1-family 852 705 663 842 1,126 1,103 1,008 1,001 1,183 1,127 1,032' 1,141 1,009 6 2-or-more-family 440 379 400 438 568 681 597 505 624 609 772' 768 643 7 Under construction, end of period1 896 682 720 730 756 796 828 859 900 933' 966' 985 8 1-family 515 382 400 411 428 455 472 489 518 532' 539' 546 9 2-or-more-family 382 301 320 319 329 341 356 370 382 400 427' 439 10 Completed 1,502 1,266 1,006 1,035 1,195 1,138 1,147 1,164 1,353 1,386' 1,418' 1,699 n a. 11 1-family 957 818 631 647 782 709 788 803 851 959' 985' 1,038 12 2-or-more-family 545 447 374 388 413 429 359 361 502 427' 433' 661 13 Mobile homes shipped 222 241 239 243 284 283 276 291 298 308 299 305 Merchant builder activity in 1-family units 14 Number sold 545 436 413 529 611 593 611 635 665 658' 599' 556 632 15 Number for sale, end of period1 342 278 255 251 259 262 262 266 273 284' 29(K 298 298 Price <thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 71.7 73.5 73.8 72.5 74.7 74.5 75.8' 75.2 76.6 82.0 Average 17 Units sold 76.4 83.1 83.8 86.7 87.2 86.8 86.2 87.6 88.8 90^ 88.7' 91.2 98.7 EXISTING UNITS (1-family) 18 Number sold 2,974 2,418 1,991 2,260 2,580 2,460 2,710 2,730 2,900 2,940 2,790 2,710 2,740 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 67.8 68.1 68.2 68.9 68.8 69.2 71.4 71.8 71.5 70.4 20 Average 72.7 78.0 80.4 80.6 80.0 80.3 81.1 81.3 81.7 84.7 84.2 84.7 83.4 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,712 239,418 232,048 240,207 247,914 243,032 241,908 247,360 254,763 264,321 269,586 274,792 272,735 22 Private 175,700 186,069 180,979 190,768 195,032 194,331 194,865 199,462 206,029 214,729 218,508' 221,409 222,160 23 Residential 87,262 86,567 74,809 86,018 89,701 93,568 96,127 101,961 107,494 113,524 118,203' 120,202 118,414 24 Nonresidential, total 88,438 99,502 106,170 104,750 105,331 100,763 98,738 97,501 98,535 101,205 100,305 101,207 110033,,774466 Buildings 25 Industrial 13,839 17,031 17,346 15,631 15,182 14,315 14,263 13,223 13,047 13,136 12,227 14,227 13,060 26 Commercial 29,940 34,243 37,281 36,934 38,167 36,675 35,469 33,619 33,291 35,898 35,871 36,277 37,400 27 Other 8,654 9,543 10,507 11,784 11,983 11,664 11,598 10,770 11,237 10,974 11,250 12,038 13,101 28 Public utilities and other 36,005 38,685 41,036 40,401 39,999 38,109 37,408 39,889 40,960 41,197 40,957 38,665 40,185 29 Public 55,011 53,346 51,068 49,439 52,882 48,701 47,043 47,897 48,734 49,592 51,078' 53,383 50,576 30 Military 1,880 1,966 2,205 2,432 2,341 2,421 2,541 2,784 2,255 1,894 2,336 2,1% 2,318 31 Highway 13,770 13,599 13,521 13,048 13,966 12,509 11,866 12,900 13,044 12,925 14,091 15,274 n.a. 32 Conservation and development 5,089 5,300 5,029 4,625 4,756 4,532 4,894 5,023 4,548 4,853 5,612 5,100 n.a. 33 Other 34,272 32,481 30,313 29,334 31,819 29,239 27,742 27,190 28,887 29,920 29,039' 30,813 n.a. 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 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 A49 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o a n n t g h e s f e ro a m rli e 1 r 2 Change ( a f t r o a m nn 3 u a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm SSSeeepppttt... 1982 1983 1983 111999888333 11998822 11998833 (((111999666777 SSeepptt.. SSeepptt.. === 111000000)))''' Dec. Mar. June Sept. May June July Aug. Sept. CONSUMER PRICES2 1 All items 5.0 2.9 .5 .4 5.4 5.3 .5 .2 .4 .4 .5 301.8 2 Food 3.5 1.7 .8 2.8 1.7 1.7 .3 -.3 -.1 .2 .3 292.6 3 Energy items 1.7 1.2 10.2 -25.1 21.0 7.1 2.5 .3 .3 .7 .7 429.3 4 All items less food and energy 5.9 3.5 -.3 4.4 3.9 6.2 .3 .3 .6 .5 .5 290.2 5 Commodities 5.0 5.2 5.4 5.7 2.9 7.1 .2 .4 .7 .5 .6 246.2 6 Services 6.6 2.2 -4.8 3.7 4.6 5.3 .3 .3 .4 .4 .4 341.6 PRODUCER PRICES 7 Finished goods 3.6 1.4 5.2 -4.7 2.9 2.7 .2 .5 .1 .4 .2 285.1 8 Consumer foods 1.4 1.3 .8 4.1 -.3 1.9 -.5 -.6 -.6 .4 .7 263.3 9 Consumer energy -.4 -5.5 7.0 -35.5 12.0 3.1 2.2' 3.2 .2 .3 .3 797.0 10 Other consumer goods 5.1 2.9 7.9 -2.0 2.5 3.4 .1' .4' .5 .2 .1 238.7 11 Capital equipment 5.1 2.4 3.6 2.0 2.1 2.1 .2' .4' .1 .7 -.3 285.4 12 Intermediate materials3 .4 1.2 1.5 -4.7 3.6 4.9 .4' 1.0F .3 .4 .5 319.8 13 Excluding energy .9 2.1 1.0 .8 2.8 4.1 .4 .4 .3 .4 .3 296.4 Crude materials 14 Foods -4.1 6.0 1.3 18.1 .8 5.9 -1.2 -1.6 -2.6 3.9 .2 257.4 15 Energy 1.6 -2.5 6.4 -9.2 -4.8 -1.9 .1' -.6 -.2 .3 788.1 16 Other -11.5 11.0 -8.0 -16.2 59.3 22.1 5.2' 4.2' 2.2 1.0 1.8 258.7 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

A50 Domestic Nonfinancial Statistics • November 1983 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1982 1983 AAccccoouunntt 11998800 11998811 11998822 Q3 Q4 Qi Q2 Q3 GROSS NATIONAL PRODUCT 1 Total 2,631.7 2,954.1 3,073.0 3,090.7 3,109.6 3,171.5 3,272.0 3,363.3 By source 2 Personal consumption expenditures 1,668.1 1,857.2 1,991.9 2,008.8 2,046.9 2,073.0 2,147.0 2,186.5 3 Durable goods 214.7 236.1 244.5 243.4 252.1 258.5 277.7 284.2 4 Nondurable goods 668.8 733.9 761.0 766.6 773.0 777.1 799.6 818.7 5 Services 784.5 887.1 986.4 998.9 1,021.8 1,037.4 1,069.7 1,083.6 6 Gross private domestic investment 401.9 474.9 414.5 425.3 377.4 404.1 450.1 501.0 7 Fixed investment 411.7 456.5 439.1 430.2 433.8 443.5 464.6 489.2 8 Nonresidential 308.8 352.2 348.3 342.3 337.0 332.1 336.3 348.4 9 Structures 110.9 133.4 141.9 140.0 138.6 132.9 127.4 130.5 10 Producers' durable equipment 197.9 218.9 206.4 202.2 198.4 199.3 208.8 217.9 11 Residential structures 102.9 104.3 90.8 87.9 96.8 111.3 128.4 140.7 12 Nonfarm 98.1 99.8 86.0 83.4 91.2 106.7 123.3 135.5 13 Change in business inventories -9.8 18.5 -24.5 -4.9 -56.4 -39.4 -14.5 11.8 14 Nonfarm -4.5 10.9 -23.1 -2.3 -53.7 -39.0 -10.3 22.3 15 Net exports of goods and services 24.0 26.3 17.4 .9 5.6 17.0 -8.5 -25.9 16 Exports 338.8 368.8 347.6 346.0 321.6 326.9 327.1 339.2 17 Imports 314.8 342.5 330.2 345.0 316.1 309.9 335.6 365.1 18 Government purchases of goods and services 537.8 595.7 649.2 655.7 679.7 677.4 683.4 701.8 19 Federal 197.1 229.2 258.7 261.7 279.2 273.5 273.7 281.2 20 State and local 340.8 366.5 390.5 394.0 400.5 404.0 409.7 420.6 By major type of product 21 Final sales, total 2,641.5 2,935.6 3,097.5 3,095.6 3,165.9 3,210.9 3,286.6 3,351.5 22 Goods 1,140.6 1,291.9 1,280.9 1,286.7 1,264.8 1,292.2 1,346.8 1,395.4 23 Durable 477.9 528.0 500.8 518.4 474.0 482.7 536.8 570.1 24 Nondurable 662.7 763.9 780.1 768.3 790.8 809.5 810.0 825.3 25 Services 1,225.2 1,374.2 1,511.2 1,527.2 1,560.5 1,588.4 1,623.4 1,645.9 26 Structures 266.0 288.0 281.0 276.9 284.3 290.9 301.9 321.9 27 Change in business inventories -9.8 18.5 -24.5 -4.9 -56.4 -39.4 -14.5 11.8 28 Durable goods -4.1 3.6 -15.5 6.4 -45.0 -38.2 -8.9 12.3 29 Nondurable goods -5.7 14.9 -9.1 -11.3 -11.4 -1.2 -5.7 -.5 30 MEMO: Total GNP in 1972 dollars 1,475.0 1,513.8 1,485.4 1,485.7 1,480.7 1,490.1 1,525.1 1,554.4 NATIONAL INCOME 31 Total 2,116.6 2,373.0 2,450.4 2,458.9 2,474.0 2,528.5 2,612.8 n.a. 32 Compensation of employees 1,599.6 1,769.3 1,865.7 1,879.5 1,889.0 1,923.7 1,968.7 2,011.3 33 Wages and salaries 1,356.6 1,493.2 1,568.1 1,579.8 1,586.0 1,610.6 1,647.1 1,681.1 34 Government and government enterprises 260.3 284.4 306.0 307.7 314.5 319.2 323.3 328.4 35 Other 1,096.4 1,208.8 1,262.1 1,272.1 1,271.5 1,291.5 1,323.8 1,352.7 36 Supplement to wages and salaries 243.0 276.0 297.6 299.7 302.9 313.1 321.6 330.2 37 Employer contributions for social insurance 115.0 132.5 140.9 141.5 142.5 148.8 151.5 153.8 38 Other labor income 128.0 143.5 156.6 158.2 160.4 164.3 170.1 176.4 39 Proprietors' income1 117.5 120.2 109.0 103.6 116.2 120.6 127.2 127.4 40 Business and professional1 95.6 89.7 87.5 87.8 90.2 98.4 106.2 111.8 41 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 15.6 42 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 43 Corporate profits1 175.4 192.3 164.8 168.5 161.9 181.8 218.2 n.a. 44 Profits before tax3 234.6 227.0 174.2 177.3 167.5 169.7 203.3 n.a. 45 Inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -15.1 46 Capital consumption adjustment -16.3 -11.0 -1.1 .1 4.7 13.9 25.6 38.2 47 Net interest 192.6 249.9 261.1 256.4 254.7 248.3 243.8 246.1 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 A51 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 Q3 Q4 Q1 Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 2,165.3 2,435.0 2,578.6 2,591.3 2,632.0 2,657.7 2,713.6 2,761.4 2 Wage and salary disbursements 1,356.7 1,493.2 1,568.1 1,579.8 1,586.0 1,610.7 1,648.4 1,681.5 3 Commodity-producing industries 468.1 509.5 509.2 508.9 499.5 508.6 522.2 537.7 4 Manufacturing 354.6 385.3 383.8 384.8 377.4 385.4 397.4 409.0 5 Distributive industries 330.7 361.6 378.8 381.9 383.5 386.4 394.3 398.9 6 Service industries 297.6 337.7 374.1 381.2 388.5 396.4 407.3 416.1 7 Government and government enterprises 260.3 284.4 306.0 307.7 314.5 319.2 324.6 328.8 8 Other labor income 128.0 143.5 156.6 158.2 160.4 164.3 170.1 176.4 9 Proprietors' income1 117.5 120.2 109.0 103.6 116.2 120.6 127.2 127.4 10 Business and professional1 95.6 89.7 87.5 87.8 90.2 98.4 106.2 111.8 11 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 15.6 12 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 13 Dividends 56.8 62.8 66.4 66.4 67.9 68.8 69.3 70.9 14 Personal interest income 266.0 341.3 366.2 364.8 363.1 357.2 357.1 368.9 15 Transfer payments 297.6 337.2 374.6 380.4 399.0 398.5 405.3 403.0 16 Old-age survivors, disability, and health insurance benefits 154.2 182.0 204.5 209.3 216.5 217.4 221.1 233.9 17 LESS: Personal contributions for social insurance 88.7 104.6 112.0 112.7 112.9 116.5 118.6 120.5 18 EQUALS: Personal income 2,165.3 2,435.0 2,578.6 2,591.3 2,632.0 2,657.7 2,713.6 2,761.4 19 LESS: Personal tax and nontax payments 336.5 387.4 402.1 399.8 404.1 401.8 412.6 399.9 20 EQUALS: Disposable personal income 1,828.9 2,047.6 2,176.5 2,191.5 2,227.8 2,255.9 2,301.0 2,361.5 21 LESS: Personal outlays 1,718.7 1,912.4 2,051.1 2,068.4 2,107.0 2,134.2 2,209.5 2,250.6 22 EQUALS: Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 110.9 MEMO: Per capita (1972 dollars) 23 Gross national product 6,478 6,584 6,399 6,393 6,355 6,382 6,518 6,627 24 Personal consumption expenditures 4,092 4,161 4,179 4,178 4,205 4,226 4,319 4,345 25 Disposable personal income 4,487 4,587 4,567 4,558 4,576 4,599 4,629 4,693 26 Saving rate (percent) 6.0 6.6 5.8 5.6 5.4 5.4 4.0 4.7 GROSS SAVING 27 Gross saving 405.9 483.8 405.8 397.9 351.3 398.5 420.6 n.a. 28 Gross private saving 435.4 509.6 521.6 524.9 526.6 541.5 535.0 n.a. 29 Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 110.9 30 Undistributed corporate profits1 32.1 44.8 37.0 38.9 37.5 48.9 70.1 n.a. 31 Corporate inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -15.1 Capital consumption allowances 32 Corporate 179.3 202.9 222.0 224.5 227.7 228.3 229.8 232.5 33 Noncorporate 113.8 126.6 137.2 138.5 140.5 142.6 143.5 147.4 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 -127.0 -175.3 -142.9 -114.4 n.a. 36 Federal -61.3 -62.2 -147.1 -158.3 -208.2 -183.3 -166.1 n.a. 37 State and local 30.6 35.3 31.3 31.3 32.9 40.4 51.7 n.a. 38 Capital grants received by the United States, net 1.2 1.1 .0 .0 .0 .0 .0 .0 39 Gross investment 408.2 478.9 406.2 400.5 355.5 397.4 417.1 450.2 40 Gross private domestic 401.9 474.9 414.5 425.3 377.4 404.1 450.1 501.0 41 Net foreign 6.3 4.0 -8.3 -24.8 -21.9 -6.7 -33.0 -50.7 42 Statistical discrepancy 2.3 -4.9 .5 2.5 4.2 -1.2 -3.5 -3.5 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

A52 International Statistics • November 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 Q2 Q3 Q4 Qlr Q2 p 1 Balance on current account 421 4,592 -11,211 11,,443344 --66,,559966 --66,,662211 --33,,558877 --99,,771122 22,,221188 --88,,114433 --55,,554466 --33,,339955 --88,,994422 3 Merchandise trade balance2 -25,544 -28,067 -36,389 --55,,885544 --1133,,007788 --1111,,335544 --88,,881100 --1144,,666611 4 Merchandise exports 224,237 237,019 211,217 5544,,999966 5522,,224411 4488,,334444 4499,,550066 4488,,991133 5 Merchandise imports -249,781 -265,086 -247,606 --6600,,885500 --6655,,331199 --5599,,669988 --5588,,331166 --6633,,557744 6 Military transactions, net -2,286 -1,355 179 220011 5544 --2266 551166 220011 7 Investment income, net3 29,570 33,484 27,304 77,,553366 66,,882211 66,,000088 55,,008899 55,,993333 8 Other service transactions, net 5,738 7,462 5,729 11,,335533 11,,334499 11,,118822 11,,117799 665533 9 Remittances, pensions, and other transfers -2,347 -2,382 -2,621 -702 -656 -661 -608 -640 10 U.S. government grants (excluding military) -4,709 -4,549 -5,413 -1,100 -1,086 -1,770 -953 -1,198 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,140 -5,078 -5,732 -1,489 -2,502 -934 -1,053 -1,126 12 Change in U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,132 -794 -1,949 -787 16 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -16 -1,823 -1,371 -241 -434 -297 -98 -303 15 Reserve position in International Monetary Fund -1,667 -2,491 -2,552 -814 -459 -732 -2,139 -212 16 Foreign currencies -6,472 -861 -1,041 -77 99 -920 1,450 531 17 Change in U.S. private assets abroad (increase, -)3 -72,757 -100,348 -107,348 -38,313 -22,803 -16,670 -19,859 -259 18 Bank-reported claims -46,838 -83,851 -109,346 -38,653 -20,631 -17,511 -15,935 3,547 19 Nonbank-reported claims -3,174 -1,181 6,976 -277 998 2,337 -2,374 n.a. 20 U.S. purchase of foreign securities, net -3,524 -5,636 -7,986 -546 -3,331 -3,527 -1,808 -3,222 21 U.S. direct investments abroad, net3 -19,221 -9,680 3,008 1,163 161 2,031 258 -584 22 Change in foreign official assets in the United States (increase, +) 15,566 5,430 3,172 1,930 2,642 1,661 49 2,686 23 U.S. Treasury securities 9,708 4,983 5,759 -2,094 4,834 4,346 3,008 2,012 24 Other U.S. government obligations 2,187 1,289 -670 258 -71 -556 -371 -164 25 Other U.S. government liabilities4 685 -28 504 459 -160 130 -270 332 26 Other U.S. liabilities reported by U.S. banks -159 -3,479 -2,054 3,271 -1,911 -1,717 -1,939 1,333 27 Other foreign official assets5 3,145 2,665 -367 36 -50 -542 -379 -827 28 Change in foreign private assets in the United States (increase, +)3 39,356 75,248 84,693 29,683 14,971 9,856 16,404 8,016 29 U.S. bank-reported liabilities 10,743 42,154 64,263 24,778 10,977 2,823 10,588 1,128 30 U.S. nonbank-reported liabilities 6,845 942 -3,104 -2,517 -425 20 -2,136 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,645 2,982 7,004 2,095 1,364 2,257 2,912 2,934 32 Foreign purchases of other U.S. securities, net 5,457 7,171 6,141 2,434 420 1,975 2,986 2,464 33 Foreign direct investments in the United States, net3 13,666 21,998 10,390 2,893 2,635 2,781 2,054 1,490 34 Allocation of SDRs 1,152 1,093 0 0 00 00 0 0 35 Discrepancy 29,556 24,238 41,390 7,887 1155,,008822 1144,,665577 8,833 379 881 --11,,119900 11,,004422 -212 801 37 Statistical discrepancy in recorded data before seasonal adjustment 29,556 24,238 41,390 7,006 1166,,227722 1133,,661155 9,045 -422 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -1,132 -794 -1,949 -787 16 39 Foreign official assets in the United States (increase, +) 14,881 5,458 2,668 1,471 2,802 1,531 319 2,354 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 3,024 368 -1,162 -1,397 -3,349 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 756 680 644 125 267 158 42 30 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 A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1983 IItteemm 11998800 11998811 11998822 Mar. Apr. May June July Aug. Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 16,752 16,074 15,566 17,008 16,629 16,630 17,387 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 19,525 19,771 21,514 21,024 21,950 22,782 22,175 3 Trade balance -24,245 -27,628 -31,759 -2,774 -3,697 -5,948 -4,016 -5,321 -6,152 -4,788 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 Apr. May June July Aug. Sept. Oct. 1 Total 26,756 30,075 33,958 34,173 33,931 33,876 33,373 32,624 33,066 33,273 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,132 11,132 11,131 11,131 11,128 11,128 11,126 3 Special drawing rights2-3 2,610 4,095 5,250 5,192 5,525 5,478 5,496 5,543 5,628 5,641 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 9,284 9,424 9,413 9,475 9,296 9,399 9,554 5 Foreign currencies4 5 10,134 9,774 10,212 8,565 7,850 7,854 7,271 6,657 6,911 6,952 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 Apr. May June July Aug. Sept. Oct. 1 Deposits 411 505 328 322 445 279 369 248 297 339 Assets held in custody 2 U.S. Treasury securities1 102,417 104,680 112,544 114,880 115,401 114,499 118,105 113,476 113,498 116,327 3 Earmarked gold2 14,965 14,804 14,716 14,723 14,727 14,724 14,727 14,693 14,621 14,550 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

A54 International Statistics • November 1983 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 iysi i ysz Feb. Mar. Apr. May June' July Aug.? All foreign countries 1 Total, all currencies 401,135 462,847 469,432' 458,283' 465,417' 453,296' 452,253' 465,772 455,848 452,486 2 Claims on United States 28,460 63,743 91,768 87,476' 93,718 91,262 91,908' 97,795 96,961 99,207 3 Parent bank 20,202 43,267 61,629 58,451' 63,342 61,792 62,596 65,826 67,729 66,862 4 Other 8,258 20,476 30,139 29,025 30,376 29,470 29,312' 31,969 29,232 32,345 5 Claims on foreigners 354,960 378,954 358,258' 351,535' 352,706' 344,069' 342,298' 349,834 340,936 335,218 6 Other branches of parent bank 77,019 87,821 91,143 89,772 89,099 84,839 86,436' 88,352 84,869 84,566 7 Banks 146,448 150,763 133,640' 129,297' 132,393' 127,365' 124,055' 130,285 123,539 118,768 8 Public borrowers 28,033 28,197 24,090 24,734 24,715 25,114 25,547 25,370 25,876 25,188 9 Nonbank foreigners 103,460 112,173 109,385 107,732 106,499 106,751 106,260 105,827 106,652 106,696 10 Other assets 17,715 20,150 19,406' 19,272' 18,993' 17,965' 18,047' 18,143 17,951 18,061 11 Total payable in U.S. dollars 291,798 350,735 361,712' 350,644' 356,726' 344,618' 343,851' 357,405 350,505 348,323 12 Claims on United States 27,191 62,142 90,048 85,868' 91,281 88,985 89,552' 95,518 94,547 96,739 13 Parent bank 19,896 42,721 60,973 57,766' 62,409 61,156 61,797 64,497 66,301 65,436 14 Other 7,295 19,421 29,075 28,102 28,872 27,829 27,755' 31,021 28,246 31,303 15 Claims on foreigners 255,391 276,937 259,646' 253,149' 253,840' 245,097' 243,896' 251,274 245,188 241,308 16 Other branches of parent bank 58,541 69,398 73,512 71,937 70,782 66,337 67,787' 69,496 67,160 66,648 17 Banks 117,342 122,110 106,338' 100,909' 103,725' 98,678' 96,071' 102,862 97,197 93,360 18 Public borrowers 23,491 22,877 18,374 18,962 18,766 18,941 19,001 18,681 19,108 18,876 19 Nonbank foreigners 56,017 62,552 61,422 61.341 60,567 61,141 61,037 60,235 61,723 62,424 20 Other assets 9,216 11,656 12,018' 11,627' 11,605' 10,536' 10,403' 10,613 10,770 10,276 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 156,577 156,022 152,408 151,821 155,631 153,209 155,031 22 Claims on United States 7,509 11,823 27,354 26,423 26,259 25,139 24,847 26,279 26,012 29,722 23 Parent bank 5,275 7,885 23,017 21,962 21,912 20,657 20,456 21,384 20,849 22,171 24 Other 2,234 3,938 4,337 4,461 4,347 4,482 4,391 4,895 5,163 7,551 25 Claims on foreigners 131,142 138,888 127,734 124,214 123,993 121,727 121,187 123,835 121,757 119,840 26 Other branches of parent bank 34,760 41,367 37,000 35,437 36,171 32,973 33,361 35,787 35,632 35,558 27 Banks 58,741 56,315 50,767 48,580 48,976 48,301 47,623 48,328 46,643 44,227 28 Public borrowers 6,688 7,490 6,240 6,592 6,337 6,591 6,599 6,570 6,440 6,335 29 Nonbank foreigners 30,953 33,716 33,727 33,605 32,509 33,862 33,604 33,150 33,042 33,720 30 Other assets 6,066 6,518 5,979 5,940 5,770 5,542 5,787 5,517 5,440 5,469 31 Total payable in U.S. dollars 99,699 115,188 123,740 119,273 118,891 113,170 112,585 118,023 116,526 119,344 32 Claims on United States 7,116 11,246 26,761 25,829 25,597 24,374 24,044 25,536 25,180 28,905 33 Parent bank 5,229 7,721 22,756 21,700 21,626 20,354 20,092 21,017 20,434 21,722 34 Other 1,887 3,525 4,005 4,129 3,971 4,020 3,952 4,519 4,746 7,183 35 Claims on foreigners 89,723 99,850 92,228 88,973 88,797 84,981 84,779 88,587 87,450 86,833 36 Other branches of parent bank 28,268 35,439 31,648 29,918 30,589 27,131 27,579 30,025 30,122 30,056 37 Banks 42,073 40,703 36,717 34,499 34,442 33,228 32,801 34,417 33,159 31,569 38 Public borrowers 4,911 5,595 4,329 4,789 4,413 4,522 4,497 4,547 4,420 4,406 39 Nonbank foreigners 14,471 18,113 19,534 19,767 19,353 20,100 19,902 19,598 19,749 20,802 40 Other assets 2,860 4,092 4,751 4,471 4.497 3,815 3,762 3,900 3,896 3,606 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156' 138,812' 145,748' 142,126' 141,021' 146,792 142,430 139,422 42 Claims on United States 17,751 46,546 59,403 56,225 62,576 61,417 62,546 66,456 66,030 63,646 43 Parent bank 12,631 31,643 34,653 32,839 37,967 37,971 39,031 40,497 42,944 40,031 44 Other 5,120 14,903 24,750 23,386 24,609 23,446 23,515' 25,959 23,086 23,615 45 Claims on foreigners 101,926 98,057 81,450' 78,606' 79,233' 77,034' 74,817' 76,734 72,683 72,021 46 Other branches of parent bank 13,342 12,951 18,720 19,730 17,512 18,295 18,537 16,658 15,565 15,344 47 Banks 54,861 55,151 42,699' 39,180' 42,430' 39.682' 37,589' 41,707 37,384 37,360 48 Public borrowers 12,577 10,010 6.413 6,494 6,540 6,388 6,170 5,935 6,538 6,404 49 Nonbank foreigners 21,146 19,945 13,618 13,202 12,751 12,669 12,521 12,434 13,196 12,913 50 Other assets 4,160 4,505 4,303' 3,981' 3,939' 3,675' 3,658' 3,602 3,717 3,755 51 Total payable in U.S. dollars 117,654 143,743 139,605' 132,966' 139,634' 136,192' 135,192' 140,702 136,299 132,977 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A55 3.14 Continued 1983 LLiiaabbiilliittyy aaccccoouunntt 11998800 11998811 11998822 Feb. Mar. Apr. May June' July Aug.P All foreign countries 52 Total, all currencies 401,135 462,847 469,432' 458,283' 465,417' 453,296' 452,253' 465,772 455,848 452,486 53 To United States 91,079 137,767 178,918' 178,299' 189,104' 184,071' 183,851' 191,485 187,662 183,245 54 Parent bank 39,286 56,344 75,561' 79,502' 85,274' 81,104' 80,844' 84,482 81,705 77,282 55 Other banks in United States 14,473 19,197 33,368 32,650 33,974 32,687 31,815 33,672 31,486 29,718 56 Nonbanks 37,275 62,226 69,989 66,147 69,856 70,280 71,192 73,331 74,471 76,245 57 To foreigners 295,411 305,630 270,678' 261,699' 258,533' 251,296' 250,813' 256,102 249,873 250,884 58 Other branches of parent bank 75,773 86,396 90,148 88,555 86,928 84,347 85,102' 86,744 84,110 83,147 59 Banks 132,116 124,906 96,739 90,244 91,738 86,950 84,637' 87,153 84,699 85,773 60 Official institutions 32,473 25,997 19,614 19,739 17,808 18,384 17,199' 18,621 18,287 17,676 61 Nonbank foreigners 55,049 68,331 64,177' 63,161' 62,059' 61,615' 63,875' 63,584 62,777 64,288 62 Other liabilities 14,690 19,450 19,836 18,285 17,780 17,929 17,589 18,185 18,313 18,357 63 Total payable in U.S. dollars 303,281 364,447 379,003' 367,688' 374,727' 363,592' 363,354' 376,055 368,545 365,558 64 To United States 88,157 134,700 175,431' 174,626' 185,606' 180,650' 180,075' 187,987 184,164 179,556 65 Parent bank 37,528 54,492 73,235' 77,169' 82,963' 79,022' 78,578' 82,285 79,449 74,968 66 Other banks in United States 14,203 18,883 33,003 32,223 33,534 32,226 31,222 33,242 31,112 29,172 67 Nonbanks 36,426 61,325 69,193 65,234 69,109 69,402 70,275 72,460 73,603 75,416 68 To foreigners 206,883 217,602 192,348' 183,683' 179,721' 173,556' 174,176' 178,877 174,783 176,163 69 Other branches of parent bank 58,172 69,299 72,878 70,887 69,038 66,387 66,863 68,554 67,427 66,091 70 Banks 87,497 79,594 57,355 51,234 52,145 48,428 47,424' 49,916 48,112 49,837 71 Official institutions 24,697 20,288 15,055 15,381 13,536 13,801 12,641' 13,912 13,517 12,999 72 Nonbank foreigners 36,517 48,421 47,060' 46,181' 45,002' 44,940' 47,248' 46,495 45,727 47,236 73 Other liabilities 8,241 12,145 11,224 9,379 9,400 9,386 9,103' 9,191 9,598 9,839 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 156,577 156,022 152,408 151,821 155,631 153,209 155,031 75 To United States 21,785 38,022 53,954 51,927 55,309 52,883 53,603 56,952 56,959 58,048 76 Parent bank 4,225 5,444 13,091 14,080 14,616 14,343 13,907 14,461 15,011 16,148 77 Other banks in United States 5,716 7,502 12,205 12,198 13,172 12,119 12,773 13,503 12,993 12,343 78 Nonbanks 11,844 25,076 28,658 25,649 27,521 26,421 26,923 28,988 28,955 29,557 79 To foreigners 117,438 112,255 99,567 97,515 93,835 92,460 91,071 91,545 89,198 89,864 80 Other branches of parent bank 15,384 16,545 18,361 21,008 19,653 19,470 20,235 18,376 17,544 17,652 81 Banks 56,262 51,336 44,020 39,892 40,867 38,960 37,594 38,238 37,192 37,847 82 Official institutions 21,412 16,517 11,504 12,025 10,252 10,520 9,413 10,848 10,146 9,588 83 Nonbank foreigners 24,380 27,857 25,682 24,590 23,063 23,510 23,829 24,083 24,316 24,777 84 Other liabilities 5,494 6,952 7,546 7,135 6,878 7,065 7,147 7,134 7,052 7,119 85 Total payable in U.S. dollars 103,440 120,277 130,261 126,007 126,088 120,683 120,324' 124,760 123,265 125,622 86 To United States 21,080 37,332 53,029 50,977 54,520 51,993 52,473 56,092 56,081 57,064 87 Parent bank 4,078 5,350 12,814 13,859 14,476 14,212 13,696 14,308 14,812 15,832 88 Other banks in United States 5,626 7,249 12,026 12,041 12,987 11,929 12,439 13,313 12,833 12,104 89 Nonbanks 11,376 24,733 28,189 25,077 27,057 25,852 26,338 28,471 28,436 29,128 90 To foreigners 79,636 79,034 73,477 71,994 68,309 65,485 64,621 65,428 63,818 65,062 91 Other branches of parent bank 10,474 12,048 14,300 16,709 14,918 14,815 15,636 14,117 13,386 13,475 92 Banks 35,388 32,298 28,810 25,563 26,395 23,821 22,960 23,895 23,453 24,616 93 Official institutions 17,024 13,612 9,668 10,121 8,419 8,474 7,306 8,786 8,065 7,630 94 Nonbank foreigners 16,750 21,076 20,699 19,601 18,577 18,375 18,719 18,630 18,914 19,341 95 Other liabilities 2,724 3,911 3,755 3,036 3,259 3,205 3,230' 3,240 3,366 3,496 Bahamas and Caymans 96 Total, all currencies 123,837 149,108 145,156' 138,812' 145,748' 142,126' 141,021' 146,792 142,430 139,422 97 To United States 59,666 85,759 104,425' 104,575' 111,484' 109,698' 108,847' 111,631 108,572 104,150 98 Parent bank 28,181 39,451 47,081' 49,689' 55,680' 52,063' 51,145' 53,626 50,730 46,214 99 Other banks in United States 7,379 10,474 18,466 17,328 17,328 17,451 16,143 16,921 15,491 14,517 100 Nonbanks 24,106 35,834 38,878 37,558 38,476 40,184 41,559 41,084 42,351 43,419 101 To foreigners 61,218 60,012 38,274' 31,885' 32,055' 30,21C 29,998' 33,088 31,610 32,918 102 Other branches of parent bank 17,040 20,641 15,796 11,808 11,536 10,515 10,272 12,020 12,461 12,999 103 Banks 29,895 23,202 10,166 8,451 8,999 8,126 7,618 9,024 8,062 8,780 104 Official institutions 4,361 3,498 1,967 1,720 1,678 1,710 1,734 1,796 2,101 2,140 105 Nonbank foreigners 9,922 12,671 10,345' 9,906' 9,842' 9,859' 10,374' 10,248 8,986 8,999 106 Other liabilities 2,953 3,337 2,457 2,352 2,209 2,218 2,176 2,073 2,248 2,354 107 Total payable in U.S. dollars 119,657 145,284 141,908' 135,459' 142,550' 138,987' 137,925' 143,502 139,244 135,959 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • November 1983 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 IItteemm 11998811'' 11998822'' Mar.' Apr.' May' June' July Aug. Sept. 1 Total1 169,735 172,699 173,058 173,510 174,541 174,628 175,986 173,432 171,242 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 23,067 22,914 23,514 23,677 21,831 23,066 21,808 3 U.S. Treasury bills and certificates3 52,389 46,658 47,917 48,399 49,281 49,068 53,434 50,965 50,399 U.S. Treasury bonds and notes 4 Marketable 53,186 67,684 70,291 70,643 70,677 71,095 70,181 69,094 69,072 5 Nonmarketable4 11,791 8,750 7,950 7,950 7,950 7,950 7,950 7,950 7,950 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 23,833 23,604 23,119 22,838 22,590 22,357 22,013 By area 1 Western Europe1 65,699 61,288 61,578 62,080 63,125 63,742 66,409 64,336 63,685 8 Canada 2,403 2,070 2,942 2,770 2,977 3,117 3,293 3,713 2,712 9 Latin America and Caribbean 6,953 6,057 5,611 6,284 5,920 6,509 5,421 5,676 5,518 10 Asia 91,607 95,993 96,853 95,393 95,568 94,688 94,336 92,946 92,713 11 Africa 1,829 1,350 1,162 1,208 1,203 1,075 1,138 1,173 1,191 12 Other countries6 1,244 5,911 4,912 5,775 5,748 5,497 5,389 5,588 5,423 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 Dec. Mar. June Sept. 1 Banks'own liabilities 1,918 3,748 3,523 4,844' 5,075' 5,810 5,943 2 Banks' own claims 2,419 4,206 4,980 7,707' 8,097' 7,817 7,919 3 Deposits 994 2,507 3,398 4,251' 3,725 3,878 3,063 4 Other claims 1,425 1,699 1,582 3,456' 4,372' 3,940 4,856 5 Claims of banks' domestic customers1 580 962 971 676 637 684 717 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 A57 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1983 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998800 11998811AA'' 11998822'' Mar/ Apr/ May' June July' Aug. Sept.'' 1 AU foreigners 205,297 243,889 307,023 317,716 309,311 317,666 320,984 326,808 334,054 338,210 2 Banks' own liabilities 124,791 163,817 227,056 235,892 226,649 233,843 236,845 238,934 247,401 251,231 3 Demand deposits 23,462 19,631 15,971 16,487 15,606 16,935 17,314 15,760 15,658 16,335 4 Time deposits1 15,076 29,039 67,910 69,341 68,075 70,831 73,938 73,554 78,353 81,464 Other2 17,583 17,647 23,980 24,655 22,210 23,841 24,881 22,601 23,302 24,413 6 Own foreign offices3 68,670 97,500 119,195 125,409 120,758 122,236 120,712 127,019 130,088 129,018 7 Banks' custody liabilities4 80,506 80,072 79,967 81,824 82,661 83,823 84,139 87,873 86,653 86,979 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 58,772 60,110 60,508 6611,,224455 65,133 6633,,991155 6644,,113300 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 18,830 18,823 19,169 18,731 18,106 17,977 17,715 10 Other 2,832 5,970 3,702 4,222 3,728 4,146 4,163 4,634 4,761 5,134 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 4,353 6,273 5,803 5,456 5,678 5,555 5,308 12 Banks' own liabilities 444 638 1,909 1,708 2,898 3,467 3,048 4,030 3,433 3,024 13 Demand deposits 146 262 106 221 252 267 165 307 325 252 14 Time deposits1 85 58 1,664 1,148 2,087 2,511 2,483 3,010 2,507 2,168 15 Other2 212 318 139 339 559 690 400 713 601 605 16 Banks' custody liabilities4 1,900 2,083 3,013 2,645 3,375 2,335 2,408 1,648 2,121 2,284 17 U.S. Treasury bills and certificates 254 541 1,621 1,501 2,230 1,280 1,538 678 1,294 11,,444422 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 1,144 1,145 1,055 870 970 828 842 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 70,985 71,313 72,795 72,747 75,265 74,032 72,208 21 Banks' own liabilities 17,826 17,109 16,640 16,530 16,281 16,768 16,723 15,613 16,841 16,086 22 Demand deposits 3,771 2,564 1,981 2,286 2,322 2,058 2,198 1,940 1,674 1,930 23 Time deposits1 3,612 4,230 5,528 5,418 6,132 6,367 6,352 6,605 6,942 6,137 24 Other2 10,443 10,315 9,131 8,827 7,826 8,343 8,173 7,068 8,224 8,019 25 Banks' custody liabilities4 68,798 62,018 55,008 54,454 55,032 56,026 56,023 59,652 57,191 56,122 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 47,917 48,399 49,281 49,068 53,434 5500,,996655 5500,,339999 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 6,512 6,618 6,724 6,937 6,189 6,186 5,690 28 Other 54 47 28 25 15 22 17 29 39 32 29 Banks9 96,415 136,008 185,848 193,562 183,343 188,957 191,977 194,869 202,436 205,708 30 Banks' own liabilities 90,456 124,312 169,416 175,185 164,890 169,536 172,521 174,750 182,000 184,669 31 Unaffiliated foreign banks 21,786 26,812 50,221 49,776 44,132 47,301 51,809 47,731 51,911 55,651 32 Demand deposits 14,188 11,614 8,675 8,264 7,601 8,832 9,134 8,074 8,299 8,602 33 Time deposits1 1,703 8,720 28,261 27,915 24,525 25,429 27,944 26,512 29,777 31,838 34 Other2 5,895 6,477 13,285 13,597 12,007 13,039 14,730 13,145 13,835 15,211 35 Own foreign offices3 68,670 97,500 119,195 125,409 120,758 122,236 120,712 127,019 130,088 129,018 36 Banks' custody liabilities4 5,959 11,696 16,432 18,377 18,453 19,420 19,456 20,119 20,437 21,039 37 U.S. Treasury bills and certificates 623 1,685 5,809 7,122 7,475 7,824 88,,339966 88,,559999 99,,001155 99,,444400 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 8,265 8,041 8,315 7,771 7,821 7,581 7,524 39 Other 2,588 5,611 2,766 2,990 2,937 3,282 3,289 3,699 3,841 4,074 40 Other foreigners 19,914 26,035 44,606 48,816 48,381 50,111 50,805 50,996 52,031 54,987 41 Banks' own liabilities 16,065 21,759 39,092 42,469 42,580 44,070 44,552 44,542 45,127 47,451 42 Demand deposits 5,356 5,191 5,209 5,716 5,430 5,777 5,817 5,439 5,359 5,552 43 Time deposits 9,676 16,030 32,457 34,860 35,332 36,524 37,158 37,428 39,126 41,322 44 Other2 1,033 537 1,426 1,893 1,819 1,769 1,578 1,675 642 578 45 Banks' custody liabilities4 3,849 4,276 5,514 6,347 5,801 6,041 6,253 6,454 6,905 7,535 46 U.S. Treasury bills and certificates 474 699 1,540 2,231 2,006 2,123 22,,224422 22,,442222 22,,664411 22,,884488 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 2,909 3,018 3,076 3,154 3,126 3,383 3,659 48 Other 190 312 908 1,207 776 842 857 906 881 1,028 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 11,383 11,604 11,537 11,589 11,062 10,720 10,287 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 Internationa] 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

A58 International Statistics • November 1983 3.17 Continued 1983 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Mar.' Apr.' May June July Aug. Sept.? 1 Total 205,297 243,889' 307,023' 317,716 309,311 317,666' 320,984 326,808' 334,054 338,210 2 Foreign countries 202,953 241,168' 302,101' 313,363 303,037 311,863' 315,528 321,130' 328,499 332,902 3 Europe 90,897 91,275' 117,753' 116,558 111,366 116,077' 118,531 118,788' 121,000 126,293 4 Austria 523 596 5^ 604 576 572' 640 610 556 656 5 Belgium-Luxembourg 4,019 4,117 2,517 2,728 2,808 2,610' 2,843 2,955 3,116 2,791 6 Denmark 497 333 509 765 849 732 616 612 573 573 7 Finland 455 2% 748 408 437 280 447 292 459 373 8 France 12,125 8,486 8,171' 6,783 7,099 6,652' 6,766 8,845' 8,488 8,839 9 Germany 9,973 7,645' 5,351' 6,471 3,437 3,971 3,423 3,707 3,537 3,424 10 Greece 670 463 537 597 670 648 567 588 636 603 U Italy 7,572 7,267' 5,626' 4,331 5,029 5,573 6,634 7,790 7,277 6,930 12 Netherlands 2,441 2,823 3,362 3,706 3,970 3,550' 3,246 3,413 3,633 4,452 13 Norway 1,344 1,457 1,567 1,061 1,565 2,227 1,719 900 1,044 1,456 14 Portugal 374 354 388 363 346 427 350 338 315 302 15 Spain 1,500 916 1,405 1,640 1,484 1,621 1,615 1,694 1,585 1,678 16 Sweden 1,737 1,545 1,39C 1,384 1,210 1,356 1,493 1,407 1,204 1,334 17 Switzerland 16,689 18,716' 29,066' 30,459 29,424 29,781 29,941 29,958 29,867 29,%8 18 Turkey 242 518 296 254 231 248 198 224 315 333 19 United Kingdom 22,680 28,286' 48,172' 47,748 45,045 48,84C 50,343 48,015 51,285 55,605 20 Yugoslavia 681 375 499 491 504 549 504 427 462 506 21 Other Western Europe1 6,939 6,541' 7,006' 6,365 6,223 6,061' 6,666 6,514 6,232 5,917 22 U.S.S.R 68 49 50 40 44 53 71 45 31 23 23 Other Eastern Europe2 370 493 573 362 413 327 448 453 384 530 24 Canada 10,031 10,250 12,232' 15,182 14,540 16,309^ 16,345 16,676 17,926 16,467 25 Latin America and Caribbean 53,170 85,223' 114,133' 120,899 118,0% 118,528' 120,440 124,257' 128,461 126,660 26 Argentina 2,132 2,445 3,578' 4,700 4,622 4,746 4,763 5,017 4,249 4,148 27 Bahamas 16,381 34,856 44,719' 49,541 49,185 49,751' 49,741 54,506' 53,993 49,803 28 Bermuda 670 765 1,572 2,083 2,080 1,831' 2,064 2,360 2,852 2,807 29 Brazil 1,216 1,568 2,014 1,967 2,498 2,483 2,675 2,681 3,017 3,418 30 British West Indies 12,766 17,794 26,376' 27,678 24,062 23,312' 24,213 24,172 26,833 28,082 31 Chile 460 664 1,626 1,108 1,204 1,345 1,355 1,385 1,472 1,609 32 Colombia 3,077 2,993 2,594 1,891 1,825 1,873 1,719 1,618 1,674 1,610 33 Cuba 6 9 9 9 12 8 13 11 12 10 34 Ecuador 371 434 455' 575 534 658 581 532 601 670 35 Guatemala 367 479 670 679 671 711 705 697 718 758 36 Jamaica 97 87 126 134 107 108 130 108 106 109 37 Mexico 4,547 7,235' 8,377' 8,126 8,365 8,536 9,027 9,142 9,445 9,693 38 Netherlands Antilles 413 3,182 3,597 3,440 3,440 3,622 3,514 3,434 3,486 3,571 39 Panama 4,718 4,857 4,805' 5,635 5,637 5,749 5,670 5,608 5,925 6,100 40 Peru 403 694 1,147 922 966 1,005 1,148 1,055 1,129 1,202 41 Uruguay 254 367 759 822 858 919 955 958 1,031 1,115 42 Venezuela 3,170 4,245 8,417' 8,196 8,622 8,576' 8,631 7,715 8,587 8,377 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,392 3,407 3,295' 3,537 3,257 3,331 3,577 44 42,420 49,822' 48,716' 52,567 50,195 52,117 5511,,995577 5533,,002255 5522,,554411 5544,,889911 China 45 Mainland 49 158 203 208 187 158 208 192' 176 190 46 Taiwan 1,662 2,082 2,761' 3,549 3,600 3,765 3,744 3,913 4,086 3,852 47 Hong Kong 2,548 3,950 4,465 5,725 5,127 5,195 5,587 5,554 5,600 6,599 48 India 416 385 433 521 669 719 669 606 528 718 49 Indonesia 730 640 857' 861 1,028 765 554 1,245 839 621 50 Israel 883 592 606 990 767 789 835 670 812 850 51 Japan 16,281 20,750 16,078 17,029 17,052 17,403 17,006 17,655 16,861 17,660 52 Korea 1,528 2,013 1,692 1,418 1,147 1,459 1,326 1,552 1,553 1,477 53 Philippines 919 874 770 718 712 783 818 770 912 1,180 54 Thailand 464 534 629 488 528 566 692 537 531 581 55 Middle-East oil-exporting countries3 14,453 12,992' 13,433 13,161 11,758 12,610 11,832 11,865' 11,764 12,617 56 Other Asia 2,487 4,853' 6,789' 7,899 7,620 7,906 8,685 8,467 8,877 8,545 57 Africa 5,187 3,180 3,124' 2,933 2,841 2,876 2,693 2,916 2,853 3,104 58 Egypt 485 360 432' 540 466 513 467 554 465 459 59 Morocco 33 32 81' 59 49 50 54 57 48 84 60 South Africa 288 420 292' 295 310 358 355 403 452 516 61 Zaire 57 26 23 33 28 32 59 55 29 34 62 Oil-exporting countries4 3,540 1,395 1,280 975 1,071 867 743 928 934 %7 63 Other Africa 783 946 1,016 1,031 916 1,057 1,014 919 926 1,045 64 Other countries 1,247 1,419 6,143 5,224 5,999 5,956' 5,562 5,469 5,719 5,487 65 Australia 950 1,223 5,904 4,933 5,804 5,778 5,404 5,250 5,512 5,284 66 All other 297 1% 239 291 195 178' 159 219 208 204 67 Nonmonetary international and regional organizations 2,344 2,721 4,922' 4,353 6,273 5,803' 5,456 5,678 5,555 5,308 68 International 1,157 1,661 4,049' 3,572 5,550 5,078' 4,747 4,987 4,861 4,674 69 Latin American regional 890 710 517 496 494 457' 443 454 441 445 70 Other regional5 296 350 357 285 229 267 266 237 252 189 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 A59 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 1983 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Mar.' Apr.' May' June July Aug. Sept.P 1 Total 172,592 251,573' 355,694' 374,550 361,811 364,096 372,437 366,155' 374,656 372,330 2 Foreign countries 172,514 251,517' 355,625' 374,477 361,719 364,019 372,337 366,070' 374,571 371,732 3 Europe 32,108 49,262' 85,508' 89,160 84,678 83,975 86,335 84,496' 88,138 86,668 4 Austria 236 121 229' 258 307 309 342 383 338 365 5 Belgium-Luxembourg 1,621 2,849' 5,138' 5,808 5,497 5,689 5,796 5,449 5,890 5,458 6 Denmark 127 187 554 1,133 1,122 1,059 1,077 1,064 1,121 1,075 7 Finland 460 546 990 961 844 766 870 777 637 791 8 France 2,958 4,127 7,251' 7,732 7,352 7,839 7,941 7,900 8,589 7,692 9 Germany 948 940 1,876' 1,771 1,273 1,208 1,404 1,112 1,153 1,409 10 Greece 256 333 452 652 628 607 576 458 375 407 11 Italy 3,364 5,240 7,560' 7,186 7,404 6,985 7,323 7,401 7,379 6,856 12 Netherlands 575 682 1,425 1,631 1,270 1,282 1,165 967 1,048 1,163 13 Norway 227 384 572 544 628 683 652 598 634 530 14 Portugal 331 529 950 823 812 818 846 844 848 861 15 Spain 993 2,095' 3,744' 3,123 3,037 3,062 3,199 3,339 3,373 3,317 16 Sweden 783 1,205 3,038' 2,452 2,268 2,307 2,864 2,910 2,836 2,964 17 Switzerland 1,446 2,213 1,639 1,668 1,646 1,085 1,598 1,727 1,630 1,740 18 Turkey 145 424 560 595 608 578 570 629 594 616 19 United Kingdom 14,917 23,849' 45,706' 49,103 46,218 45,949 46,250 45,346' 48,024 47,745 20 Yugoslavia 853 1,225' 1,43(K 1,394 1,433 1,482 1,463 1,381 1,351 1,354 2.1 Other Western Europe1 179 211' 368' 321 250 254 334 356 406 527 2? U.S.S.R 281 377 263 315 397 349 373 288 232 217 23 Other Eastern Europe2 1,410 1,725 1,762' 1,690 1,685 1,664 1,692 1,566 1,680 1,580 24 Canada 4,810 9,193' 13,678' 16,464 15,081 16,536 16,616 16,497' 17,491 16,366 25 Latin America and Caribbean 92,992 138,331' 188,199' 199,297 196,075 198,139 198,880 195,018' 197,758 196,143 26 Argentina 5,689 7,527' 10,974 11,284 11,228 11,550 11,243 11,112 11,334 11,339 27 Bahamas 29,419 43,535' 56,88c 59,914 57,257 58,965 62,153 58,824' 57,240 57,978 28 Bermuda 218 346 603 500 385 628 447 358 390 637 29 Brazil 10,496 16,926' 23,271' 23,576 23,726 23,541 23,333 23,711 24,224 24,009 30 British West Indies 15,663 21,972' 29,101' 35,395 35,114 33,356 32,518' 30,349 31,774 30,600 31 Chile 1,951 3,690 5,513 5,210 5,131 5,568 5,161 5,188 5,389 5,707 32 Colombia 1,752 2,018 3,211 3,166 3,155 3,485 3,600 3,656 3,592 3,636 33 Cuba 3 3 3 2 0 0 0 0 0 3 34 Ecuador 1,190 1,531 2,062 2,054 2,093 2,040 2,038 2,018 2,014 2,005 35 Guatemala3 137 124 124 84 77 90 90 96 100 107 36 Jamaica3 36 62 181 217 196 197 207 209 204 214 37 Mexico 12,595 22,439' 29,552' 31,285 31,758 31,939 32,318 32,862 33,700 33,439 38 Netherlands Antilles 821 1,076 839 894 979 827 519 943 838 1,017 39 Panama 4,974 6,794' 10,210' 9,838 9,013 9,686 8,824 9,127 10,080 9,120 40 Peru 890 1,218 2,357' 2,303 2,333 2,416 2,624 2,506 2,421 2,416 41 Uruguay 137 157 686 707 859 824 820 833 820 856 42 Venezuela 5,438 7,069 10,643' 10,623 10,564 10,748 10,848 11,121' 11,045 10,882 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,246 2,208 2,280 2,138' 2,104 2,592 2,177 44 39,078 49,851' 60,786' 61,557 57,711 57,412 62,502 61,874' 62,481 63,912 China 45 Mainland 195 107 214 195 239 219 166 124 179 228 46 Taiwan 2,469 2,461 2,288 1,860 1,786 1,613 1,760 1,715 1,644 1,744 47 Hong Kong 2,247 4,132' 6,698' 7,656 7,487 7,552 7,845 8,033' 8,093 8,536 48 India 142 123 222 160 163 198 230 245 275 259 49 Indonesia 245 352' 348' 511 547 569 537 595 635 688 50 Israel 1,172 1,567' 2,029' 1,744 2,036 1,926 2,181 1,657 1,639 1,747 51 Japan 21,361 26,797' 28,302 28,555 24,979 24,757 27,381 27,758' 27,342 28,479 52 Korea 5,697 7,340' 9,387' 9,215 8,768 8,940 9,143 9,639 9,696 9,382 53 Philippines 989 1,819' 2,625' 2,638 2,637 2,493 2,829 2,640 2,540 2,729 54 Thailand 876 565' 643 625 741 707 788 689 735 800 55 Middle East oil-exporting countries4 1,432 1,581' 3,087 3,832 3,947 4,027 4,452 4,003 4,632 4,082 56 Other Asia 2,252 3,009 4,943' 4,564 4,381 4,413 5,191 4,776 5,071 5,240 57 Africa 2,377 3,503 5,346' 5,483 5,698 5,538 5,662 5,937 6,527 6,467 58 Egypt 151 238 322 309 297 378 421 486 529 595 59 Morocco 223 284 353 375 382 441 463 484 444 444 60 South Africa 370 1,011 2,012 2,185 2,123 2,123 2,231 2,407 2,630 2,703 61 Zaire 94 112 57 52 104 47 46 45 40 38 62 Oil-exporting countries5 805 657 801 844 750 851 830 850 1,052 964 63 Other 734 1,201 1,802' 1,717 2,041 1,699 1,671 1,664 1,832 1,722 64 Other countries 1,150 1,376 2,107 2,516 2,475 2,418 2,342 2,248 2,177 2,176 65 Australia 859 1,203 1,713 1,959 1,889 1,756 1,722 1,635 1,635 1,611 66 All other 290 172 394 557 586 662 620 613 542 566 67 Nonmonetary international and regional organizations6 78 56 68 73 92 77 100 85 85 598 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 before April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and A Liabilities and claims of banks in the United States were increased, 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

A60 International Statistics • November 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 1983 TTyyppee ooff ccllaaiimm 11998800 11998811AA'' 11998822'' Mar.' Apr/ May' June July' Aug. Sept. 1 Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555544444441111111 333333399999996666666,,,,,,,000000000000004444444 444444411111112222222,,,,,,,888888811111116666666 444444400000007777777,,,,,,,999999911111110000000 444444400000008888888,,,,,,,333333399999996666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555577777773333333 333333355555555555555,,,,,,,666666699999994444444 333333377777774444444,,,,,,,555555555555550000000 361,811 364,0% 333333377777772222222,,,,,,,444444433333337777777 366,155 374,656 333333377777772222222,,,,,,,333333333333330000000 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444400000009999999 44444446666666,,,,,,,999999988888888888888 47,598 47,821 44444449999999,,,,,,,222222244444440000000 49,609 51,584 55555553333333,,,,,,,555555500000003333333 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,444444444444448888888 111111144444444444444,,,,,,,000000077777776666666 135,824 139,392 111111144444440000000,,,,,,,111111133333339999999 135,686 139,910 111111133333336666666,,,,,,,999999922222226666666 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,666666688888888888888 111111122222221111111,,,,,,,333333333333333333333 111111122222222222222,,,,,,,333333355555559999999 117,733 116,017 111111122222220000000,,,,,,,555555555555559999999 117,720 120,600 111111111111119999999,,,,,,,999999933333332222222 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333366666665555555 44444444444444,,,,,,,111111188888880000000 44444449999999,,,,,,,555555522222227777777 44,952 44,403 44444446666666,,,,,,,888888888888883333333 46,166 47,383 44444448888888,,,,,,,111111155555556666666 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 77777772222222,,,,,,,888888833333332222222 72,780 71,613 77777773333333,,,,,,,666666677777776666666 71,554 73,216 77777771111111,,,,,,,777777777777775555555 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,555555500000004444444 66666661111111,,,,,,,111111122222227777777 60,656 60,867 66666662222222,,,,,,,444444499999999999999 63,141 62,562 66666661111111,,,,,,,999999977777770000000 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333338888888,,,,,,,222222266666667777777 33333335555555,,,,,,,444444477777773333333 33333336666666,,,,,,,000000066666666666666 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,111111122222226666666 2222222,,,,,,,666666633333331111111 2222222,,,,,,,666666655555554444444 11 Negotiable and readily transferable 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222229999999,,,,,,,222222266666661111111 22222226666666,,,,,,,777777700000008888888 22222227777777,,,,,,,555555555555550000000 12 Outstanding collections and other 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 6666666,,,,,,,888888888888880000000 6666666,,,,,,,111111133333333333333 5555555,,,,,,,888888866666662222222 13 MEMO: Customer liability on 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,333333333333338888888 33333335555555,,,,,,,111111155555553333333 33333334444444,,,,,,,888888811111111111111 33333334444444,,,,,,,555555588888889999999 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 39,862 41,210 38,856 41,529 42,934 40,677' 41,012 41,299 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 • 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 11998800 1199881144'' Sept.' Dec.' Mar.' June Sept. 1 Total 106,748 154,574 215,200 227,967 229,437 231,022 233,602 By borrower 2 Maturity of 1 year or less1 82,555 116,378 163,465 173,736 173,631 173,5% 174,398 3 Foreign public borrowers 9,974 15,142 20,095 21,236 21,667 22,442 25,901 4 All other foreigners 72,581 101,236 143,370 152,500 151,964 151,154 148,497 5 Maturity of over 1 year1 24,193 38,197 51,735 54,231 55,807 57,427 59,204 6 Foreign public borrowers 10,152 15,589 22,016 23,127 24,693 26,170 26,997 7 All other foreigners 14,041 22,608 29,719 31,104 31,113 31,257 32,207 By area Maturity of 1 year or less1 8 Europe 18,715 28,130 45,908 50,493 53,986 51,797 52,348 9 Canada 2,723 4,662 7,062 7,642 6,845 6,957 6,408 10 Latin America and Caribbean 32,034 48,701 72,353 73,239 74,998 74,622 75,978 11 26,686 31,485 33,358 37,455 32,574 35,183 33,616 12 Africa 1,757 2,457 3,621 3,680 3,872 3,854 4,657 13 Mother2 640 943 1,163 1,226 11,,335555 11,,118822 11,,339911 Maturity of over 1 year1 14 Europe 5,118 8,100 10,564 11,636 11,986 12,181 11,626 15 Canada 1,448 1,808 2,003 1,931 1,924 1,864 1,770 16 Latin America and Caribbean 15,075 25,209 34,112 35,245 35,844 36,604 38,381 17 1,865 1,907 3,092 3,185 3,573 4,045 4,584 18 Africa 507 900 1,328 1,494 1,485 1,667 1,734 19 All other2 179 272 635 740 995 1,066 1,108 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 A61 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 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 303.9 352.0 382.9 399.8 414.9 419.3 434.6 437.3 438.0 438.3' 435.0' 2 G-10 countries and Switzerland 138.4 162.1 168.3 172.2 175.4 174.3 176.0 175.1 179.2 180.8 175.7' 3 Belgium-Luxembourg 11.1 13.0 13.8 14.1 13.3 13.2 14.1 13.6 13.1 13.7 13.1 4 France 11.7 14.1 14.7 16.0 15.3 15.9 16.5 15.8 16.7 16.6 17.1 5 Germany 12.2 12.1 12.1 12.7 12.9 12.5 12.7 12.2 12.7 13.4 12.5 6 Italy 6.4 8.2 8.4 8.6 9.6 9.0 9.0 9.7 10.3 10.1 10.5' 7 Netherlands 4.8 4.4 4.2 3.7 4.0 4.0 4.1 3.8 3.6 4.3 4.1 8 Sweden 2.4 2.9 3.1 3.4 3.7 4.1 4.0 4.7 5.0 4.3 4.7 9 Switzerland 4.7 5.0 5.2 5.1 5.5 5.3 5.1 5.0 5.0 4.6 4.7 10 United Kingdom 56.4 67.4 67.0 68.8 70.0 70.2 69.2 70.1 71.6 72.3 69.8' 11 Canada 6.3 8.4 10.8 11.8 10.9 11.6 11.4 11.0 11.1 12.4 10.7 12 Japan 22.4 26.5 28.9 28.0 30.1 28.5 29.9 29.3 30.1 29.1 28.5' 13 Other developed countries 19.9 21.6 24.8 26.4 28.4 30.7 32.1 32.7 33.7 33.9 34.3' 14 Austria 1.9 2.1 2.2 1.9 2.1 2.1 2.0 1.9 2.1 2.1 15 Denmark 2.3 2.3 2.5 2.3 2.5 2.6 2.5 2.4 3.3 3.3 16 Finland 1.4 1.3 1.4 1.7 1.6 1.6 1.8 2.2 2.1 2.1 17 Greece 2.8 3.0 2.9 2.8 2.9 2.7 2.6 3.0 2.9 2.8' 18 Norway 2.6 2.8 3.0 3.1 3.2 3.2 3.4 3.3 3.3 3.4 19 Portugal .6 .8 1.0 1.1 1.2 1.5 1.6 1.5 1.4 1.4 20 Spain 4.4 5.7 5.8 6.7 7.2 7.3 7.7 7.5 7.0 7.2 21 Turkey 1.5 1.4 1.5 1.4 1.6 1.5 1.5 1.4 1.5 1.4 22 Other Western Europe 1.7 1.8 1.9 2.1 2.1 2.2 2.1 2.3 2.2 2.1' 23 South Africa 1.1 1.9 2.5 2.8 3.3 3.5 3.6 3.7 3.6 3.9 24 Australia 1.3 1.7 1.9 2.5 3.0 4.0 4.0 4.4 4.6 4.5 25 OPEC countries2 22.9 22.7 22.2 23.5 24.7 25.4 26.4 27.3 27.5 28.5 28.2' 26 Ecuador 2.1 2.0 2.1 2.2 2.3 2.4 2.3 2.2 2.2 2.2 27 Venezuela 9.1 8.8 9.2 9.9 10.0 10.1 10.4 10.6 10.4 10.2 28 Indonesia 1.8 2.1 2.5 2.6 2.7 2.8 2.9 3.2 3.5 3.2 29 Middle East countries 6.9 6.8 7.1 7.5 8.2 8.7 9.0 8.7 9.3 9.5 30 African countries 2.8 2.6 2.6 2.5 2.2 2.5 2.7 2.8 3.0 3.2' 31 Non-OPEC developing countries 63.0 77.4 84.8 90.2 96.2 97.4 103.6 103.9 106.9 107.3 108.1' Latin America 32 Argentina 5.0 7.9 8.5 9.3 9.4 10.0 9.7 9.2 8.9 9.0 9.4 33 Brazil 15.2 16.2 17.5 17.7 19.1 19.6 21.3 22.4 22.9 23.1 22.5 34 Chile 2.5 3.7 4.8 5.5 5.8 6.0 6.4 6.2 6.3 6.0 5.8 35 Colombia 2.2 2.6 2.5 2.5 2.6 2.3 2.6 2.8 3.1 2.9 3.2 36 Mexico 12.0 15.9 18.2 20.0 21.6 22.9 25.1 24.9 24.5 24.9 25.0 37 Peru 1.5 1.8 1.7 1.8 2.0 1.9 2.5 2.6 2.6 2.4 2.6 38 Other Latin America 3.7 3.9 3.8 4.2 4.1 4.1 4.0 4.3 4.0 4.2 4.3 Asia China 39 Mainland .1 .2 .2 .2 .2 .2 .3 .2 .2 .2 .2 40 Taiwan 4.2 4.6 5.1 5.1 5.1 5.0 4.9 5.2 5.1 5.1' 41 India .3 .3 .3 .5 .5 .5 .6 .4 .5 42 Israel 1.5 1.5 2.1 1.7 2.2 1.9 2.3 2.0 2.3' 43 Korea (South) 7.1 8.6 9.4 8.6 8.9 9.3 10.9 10.8 10.8 44 Malaysia 1.1 1.4 1.4 1.7 1.7 1.9 1.8 2.1 2.5 2.6 45 Philippines 5.1 5.1 5.6 6.0 5.9 6.3 6.0 6.3 6.6 6.4 46 Thailand 1.6 1.5 1.4 1.5 1.4 1.3 1.3 1.6 1.6 1.8 47 Other Asia .6 .8 1.0 1.2 1.1 1.3 1.1 1.4 1.1' Africa 48 Egypt .6 .8 .7 1.0 1.1 1.3 1.3 1.3 1.2 1.1 1.2 49 Morocco .6 .7 .5 .7 .7 .7 .7 .8 .7 .8 .8 50 Zaire .2 .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.1 2.2 2.3 2.3 2.3 2.2 2.4 2.3 2.2 52 Eastern Europe 7.3 7.4 7.7 7.7 7.8 7.2 6.7 6.3 6.2 5.8' 6.0 53 U.S.S.R .7 .4 .5 .4 .6 .4 .4 .3 .3 .3 .4 54 Yugoslavia 1.8 2.3 2.5 2.5 2.5 2.5 2.4 2.2 2.2 2.2' 2.3 55 Other 4.8 4.6 4.8 4.7 4.7 4.3 3.9 3.8 3.7 3.3 3.3 56 Offshore banking centers 40.4 47.0 59.3 61.7 63.6 65.7 71.7 71.7 66.6 65.7' 67.1' 57 Bahamas 13.7 13.7 17.9 21.3 19.0 20.2 23.9 21.2 18.8 17.3 19.7' 58 Bermuda .8 .6 .7 .8 .7 .7 .7 .8 .9 1.0 .8 59 Cayman Islands and other British West Indies 9.4 10.6 12.6 12.1 12.4 12.1 12.3 13.5 13.0 11.7' 11.9' 60 Netherlands Antilles 1.2 2.1 2.4 2.2 3.2 3.2 3.0 3.3 3.3 3.2 2.6 61 Panama4 4.3 5.4 6.9 6.7 7.6 7.2 7.4 8.0 7.6 7.1 6.5 62 Lebanon .2 .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 10.3 10.3 11.8 12.9 14.3 14.9 13.8 15.0 14.5 64 Singapore 4.5 5.9 8.1 8.0 8.7 9.3 9.9 9.8 9.1 10.3' 11.C 65 Others5 .4 .3 .3 .1 .1 .1 .1 .0 .0 .0 .0 66 Miscellaneous and unallocated6 11.7 14.0 15.7 18.2 18.8 18.5 18.4 20.3 17.9 16.3 15.5' 1. The banking offices covered by these data are the U.S. offices and foreign 2. Besides the Organization of Petroleum Exporting Countries shown individbranches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. ually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq, Offices not covered include (1) U.S. agencies and branches of foreign banks, and Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are 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

A62 International Statistics • November 1983 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 June Sept. Dec. Mar. June 1 Total 17,433 29,434 28,604 25,447 24,995 24,940 22,925' 22,453 2 Payable in dollars 14,323 25,689 24,904 22,685 21,896 21,841 20,032' 19,359 3 Payable in foreign currencies 3,110 3,745 3,700 2,763 3,099 3,099 2,893 3,094 By type 4 Financial liabilities 7,523 11,330 12,143 10,063 10,749 10,388 10,478 10,946 5 Payable in dollars 5,223 8,528 9,494 8,121 8,458 8,313 8,533 8,611 6 Payable in foreign currencies 2,300 2,802 2,649 1,941 2,291 2,075 1,945 2,335 7 Commercial liabilities 9,910 18,104 16,461 15,385 14,245 14,552 12,447' 11,507 8 Trade payables 4,591 12,201 10,818 9,475 8,039 7,601 5,620' 5,979 9 Advance receipts and other liabilities 5,320 5,903 5,643 5,910 6,206 6,951 6,827' 5,527 10 Payable in dollars 9,100 17,161 15,409 14,563 13,438 13,528 11,499' 10,747 11 Payable in foreign currencies 811 943 1,052 822 808 1,024 948 759 By area or country Financial liabilities 12 Europe 4,665 6,481 6,816 5,944 6,389 6,172 6,090 6,049 13 Belgium-Luxembourg 338 479 471 518 494 502 407 434 14 France 175 327 709 581 672 635 685 697 15 Germany 497 582 491 439 446 470 487 417 16 Netherlands 829 681 748 517 759 702 687 728 17 Switzerland 170 354 715 661 670 673 623 595 18 United Kingdom 2,477 3,923 3,556 3,081 3,212 3,061 3,071 3,051 19 Canada 532 964 958 758 702 685 723 1,278 20 Latin America and Caribbean 1,514 3,136 3,356 2,805 2,969 2,707 2,690 2,453 21 Bahamas 404 964 1,279 1,003 938 890 817 694 22 Bermuda 81 1 7 7 9 14 18 35 23 Brazil 18 23 22 24 28 28 39 34 24 British West Indies 516 1,452 1,241 1,044 981 1,002 1,001 924 25 Mexico 121 99 102 83 85 121 149 151 26 Venezuela 72 81 98 100 104 114 121 124 27 Asia 804 723 976 526 658 7% 943 1,140 28 Japan 726 644 792 340 424 572 699 863 29 Middle East oil-exporting countries2 31 38 75 66 67 69 68 105 30 Africa 4 11 14 17 17 17 20 17 31 Oil-exporting countries3 1 1 0 0 0 0 0 0 32 All other4 4 15 24 11 13 12 13 9 Commercial liabilities 33 Europe 3,709 4,402 3,770 3,844 3,957 3,636 3,430' 3,335 34 Belgium-Luxembourg 137 90 71 47 50 52 45' 41 35 France 467 582 573 703 762 595 576 614 36 Germany 545 679 545 457 436 457 440' 426 37 Netherlands 227 219 220 246 277 346 351' 342 38 Switzerland 316 499 424 412 358 363 354' 357 39 United Kingdom 1,080 1,209 880 951 1,001 850 679' 621 40 Canada 924 888 897 1,134 1,197 1,490 1,454 1,478 41 Latin America and Caribbean 1,325 1,300 1,044 1,460 1,235 991 1,050' 999 42 Bahamas 69 8 2 20 6 16 4 1 43 Bermuda 32 75 67 102 48 89 117 76 44 Brazil 203 111 67 62 128 60 51 49 45 British West Indies 21 35 2 2 3 32 4 22 46 Mexico 257 367 340 769 499 379 355' 391 47 Venezuela 301 319 276 219 269 148 183' 219 48 Asia 2,991 10,242 9,384 7,588 6,593 7,080 5,437' 4,685 49 Japan 583 802 1,094 1,085 1,147 1,150 1,235' 1,122 50 Middle East oil-exporting countries2'3 1,014 8,098 7,008 5,195 4,178 4,531 2,803' 2,294 51 Africa 728 817 703 729 669 704 497' 492 52 Oil-exporting countries3 384 517 344 340 248 277 158 167 53 All other4 233 456 664 630 595 651 578' 518 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 5. Revisions include a reclassification of transactions, which also affects the United Arab Emirates (Trucial States). totals for Asia and the grand totals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.23 CLAIMS ON 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 June Sept. Dec. Mar. June 1 Total 31,299 34,482 35,814 30,758 29,852 27,600 3o,69y 31,135 2 Payable in dollars 28,0% 31,528 32,220 28,256 27,199 24,982 27,951' 28,558 3 Payable in foreign currencies 3,203 2,955 3,595 2,502 2,653 2,618 2,741' 2,577 By type 4 Financial claims 18,398 19,763 20,800 18,442 17,988 16,661 19,710 20,661 5 Deposits 12,858 14,166 14,747 13,680 12,882 12,134 15,059 15,820 6 Payable in dollars 11,936 13,381 14,122 13,310 12,469 11,709 14,581 15,398 7 Payable in foreign currencies 923 785 625 370 413 426 478 422 8 Other financial claims 5,540 5,597 6,053 4,762 5,106 4,527 4,651 4,841 9 Payable in dollars 3,714 3,914 3,599 3,194 3,419 2,895 3,006 3,238 10 Payable in foreign currencies 1,826 1,683 2,454 1,568 1,687 1,632 1,645 1,603 11 Commercial claims 12,901 14,720 15,014 12,316 11,864 10,939 10,983' 10,474 12 Trade receivables 12,185 13,960 13,978 11,137 10,758 9,929 9,780' 9,222 13 Advance payments and other claims 716 759 1,036 1,179 1,106 1,010 1,203' 1,252 14 Payable in dollars 12,447 14,233 14,499 11,752 11,311 10,378 10,364' 9,923 15 Payable in foreign currencies 454 487 516 564 552 561 619' 551 By area or country Financial claims 16 Europe 6,179 6,069 4,573 4,734 4,884 4,670 6,066 7,198 17 Belgium-Luxembourg 32 145 43 13 16 10 58 12 18 France 177 298 285 324 326 134 90 137 19 Germany 409 230 224 148 215 178 127 217 20 Netherlands 53 51 50 56 62 32 140 136 21 Switzerland 73 54 117 74 60 107 99 48 22 United Kingdom 5,099 4,987 3,522 3,847 3,834 3,945 5,301 6,406 23 Canada 5,003 5,036 6,628 4,365 4,322 4,219 4,605 4,857 24 Latin America and Caribbean 6,312 7,811 8,620 8,319 7,727 6,884 8,147 7,577 25 Bahamas 2,773 3,477 3,556 3,762 3,389 33,,110088 3,747 3,147 26 Bermuda 30 135 18 42 16 88 10 103 27 Brazil 163 % 30 76 76 62 50 48 28 British West Indies 2,011 2,755 3,872 3,588 3,237 2,787 3,063 2,963 29 Mexico 157 208 313 274 268 274 352 348 30 Venezuela 143 137 148 134 133 139 156 152 31 Asia 601 607 758 802 846 698 712 726 32 Japan 199 189 366 327 268 153 233 225 33 Middle East oil-exporting countries2 16 20 37 33 30 15 18 14 34 Africa 258 208 173 156 165 158 153 154 35 Oil-exporting countries3 49 26 46 41 50 48 45 48 36 All other4 44 32 48 66 44 31 25 149 Commercial claims 37 Europe 4,922 5,544 5,382 4,330 4,227 3,755 3,592' 3,392 38 Belgium-Luxembourg 202 233 234 211 178 150 140 144 39 France 727 1,129 776 636 646 473 489' 495 40 Germany 593 599 559 394 427 356 419' 358 41 Netherlands 298 318 299 291 267 347 309' 242 42 Switzerland 272 354 427 414 291 339 227 303 43 United Kingdom 901 929 %9 905 1,035 793 754' 737 44 Canada 859 914 %7 714 666 635 674 740 45 Latin America and Caribbean 2,879 3,766 3,479 2,789 2,772 2,513 2.69C 2,714 46 Bahamas 21 21 12 30 19 21 30 30 47 Bermuda 197 108 223 225 154 259 172 108 48 Brazil 645 861 668 423 481 258 401 510 49 British West Indies 16 34 12 10 7 12 21' 21 50 Mexico 708 1,102 1,022 750 869 767 886' 951 51 Venezuela 343 410 424 383 373 351 288' 273 52 Asia 3,451 3,522 3,954 3,422 3,091 3,033 3,126' 2,741 53 Japan 1,177 1,052 1,244 1,249 973 1,047 1,115 854 54 Middle East oil-exporting countries2 765 825 905 809 777 748 701' 6% 55 Africa 551 653 772 648 660 588 559 527 56 Oil-exporting countries3 130 153 152 138 148 140 131 130 57 All other4 240 321 461 413 448 415 342' 360 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

A64 International Statistics • November 1983 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- Sept. Mar. Apr. May June July Aug. Sept. U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,942' 53,470 7,091' 5,946' 6,625' 6,864 5,758 5,149 5,514 2 Foreign sales 34,856 37,965' 48,501 6,163' 5,350' 6,365 6,454 5,198 5,122 5,115 3 Net purchases, or sales (—) 5,830 3,976' 4,969 927' 597' 260' 410 560 27 399 4 Foreign countries 5,803 3,892' 4,868 901' 545' 258' 435 551 28 391 5 Europe 3,662 2,616' 4,458 977' 648' 302' 202 442 96 261 6 France 900 -143 68 8 29 -28 14 33 -77 -10 7 Germany -22 333 996 226 222 86 -31 135 54 48 8 Netherlands 42 -60 -132 41 12' -81 -57 7 -13 -49 9 Switzerland 288 -532' 1,637 102 277' 269 186 187 56 123 10 United Kingdom 2,235 3,152' 1,872 577' 133' 122' 95 49 79 171 11 Canada 783 221 841 147 122 92 98 1 75 154 12 Latin America and Caribbean -30 308' 312 -22' 117' 63 28 35 -98 105 13 Middle East1 1,140 366 -924 -6C -302 -192 36 -59 -98 -178 14 Other Asia 287 246 114 -210 -44 0 68 146 75 51 15 Africa 7 2 40 8 8 3 1 0 7 4 16 Other countries -46 131 27 60 -4 -10 2 -12 -28 -6 17 Nonmonetary international and regional organizations 27 85 101 26 52 2 -25 9 -1 8 BONDS2 18 Foreign purchases 17,304 21,918' 17,912 2,310' 2,275' 2,458 1,546 1,438 2,124 1,888 19 Foreign sales 12,272 20,463 17,902 2,447' 1,885' 2,289 1,741 1,463 1,936 1,990 20 Net purchases, or sales (-) 5,033 1,456 10 -137' 390' 169 -195 -25 188 -102 21 Foreign countries 4,972 1,483' -75 -154' 405' 193 -197 -49 86 -108 22 Europe 1,351 2,081 238 -266 405' 474 -122 -74 115 -17 23 France 11 295 -49 -22 7 7 -7 -5 -6 0 24 Germany 848 2,116 173 127 47 85 -12 -8 25 41 25 Netherlands 70 28 31 3 1 12 -4 5 -3 1 26 Switzerland 108 161 536 -2 209 188 28 -8 -1 -19 27 United Kingdom 196 -581 48 -182 42' 141 120 -33 112 33 28 Canada -12 25 81 21 -18 22 -10 53 -3 -10 29 Latin America and Caribbean 132 160 56 0' -3 10 19 13 -21 4 30 Middle East1 3,465 -748 -997 32 -56' -378 -168 -119 -78 -105 31 Other Asia 44 -23 492 59 60 62 47 78 74 19 32 Africa -1 -19 0 0 -5 1 2 0 0 2 33 Other countries -7 7 56 0 21 2 35 0 0 -2 34 Nonmonetary international and regional organizations 61 -28 85 17 -14 -24 2 24 102 6 Foreign securities 35 Stocks, net purchases, or sales (-) -247 -1,341' -3,432 -442' -548 -641 -647 -487 -199 74 36 Foreign purchases 9,339 7,163' 9,921 1,184' 971 1,079 1,346 972 1,032 1,266 37 Foreign sales 9,586 8,504' 13,353 1,626' 1,519 1,720 1,993 1,458 1,231 1,192 38 Bonds, net purchases, or sales (-) -5,460 -6,602' -2,616 -567' -686 -838' 127 -219' -463 290 39 Foreign purchases 17,553 29,843' 26,362 2,748' 2,396 2,655 3,220 2,534 2,708 3,713 40 Foreign sales 23,013 36,445' 28,979 3,315' 3,083 3,493' 3,092 2,754' 3,171 3,423 41 Net purchases, or sales (—), of stocks and bonds .... -5,707 -7,942' -6,048 -1,009' -1,234 -1,479' -520 -706' -663 364 42 Foreign countries -4,694 -6,777' -5,670 -723' -1,212 -973' -546 -715' -669 266 43 Europe -728 -2,481' -4,364 -620' -672 -632 -583 -682 -286 125 44 Canada -3,697 -2,364 -1,206 14' -438 -287 5 55 -97 12 45 Latin America and Caribbean 69 286' 928 -23' 88 243 -80 47' 62 -13 46 Asia -367 -1,845' -1,061 -14C -221 -31C -182 -145 23 135 47 Africa -55 -9 130 30 25 9 13 11 14 16 48 Other countries 84 -364 -97 16 7 4 280 0 -385 -9 49 Nonmonetary international and regional organizations -1,012 -1,165 -378 -286' -22 -506 26 9 7 98 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 A65 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1983 1983 Country or area 1981 1982 J S a e n p . t - . Mar. Apr. May June' July Aug. Sept. Holdings (end of period)1 1 Estimated total2 70,249 85,17^ 88,694' 87,553' 89,513' 91,070' 88,788' 87,211 88,359 2 Foreign countries2 64,565 80,596' 83,080' 84,106' 84,351' 84,887' 83,571' 82,548 82,491 3 Europe2 24,012 29,284' 32,388' 33,583' 33,628' 33,638' 33,081' 32,961 33,261 4 Belgium-Luxembourg 543 447 -325' -91' -76' -68' 99' 88 55 5 Germany2 11,861 14,841 17,560 17,799' 16,954' 16,877' 16,314' 16,110 16,146 6 Netherlands 1,991 2,754 3,194 3,230 3,255 3,251 3,262 3,244 3,044 7 Sweden 643 677' 666' 666' 68(K 665' 684' 627 649 8 Switzerland2 846 1,540 1,044 1,070 914 877 855 943 1,066 9 United Kingdom 6,709 6,549 7,478 7,721' 8,048' 8,233' 8,235' 8,269 8,305 10 Other Western Europe 1,419 2,476 2,771' 3,188' 3,855' 3,803' 3,631' 3,680 3,997 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 514 602 735' 707' 874' 982' 1,057' 1,087 1,063 13 Latin America and Caribbean 736 1,076 951 932 1,039 1,041 886 800 774 14 Venezuela 286 188 77 72 72 72 62 62 65 15 Other Latin America and Caribbean 319 656 690 676 775 773 636 622 631 16 Netherlands Antilles 131 232 184 184 192 196 188 116 78 17 Asia 38,671 49,502 48,897 48,766' 48,686' 49,094' 48,394' 47,528 47,267 18 Japan 10,780 11,578 11,736 11,858' 12,130' 12,592' 12,763' 13,007 13,210 19 Africa 631 77 80 80 79 79 79 79 79 20 All other 2 55 31 39 45' 53' 74' 94 48 21 Nonmonetary international and regional organizations 5,684 4,583 5,614' 3,447' 5,162' 6,183' 5,217' 4,663 5,868 22 International 5,638 4,186 4,966 2,969 4,514' 5,372' 4,500' 4,051 5,386 23 Latin American regional 1 6 6 6 6 6 6 6 6 Transactions (net purchases, or sales ( -) during period) 24 Total2 12,699 14,930' 3,180 2,608' -1,141' 1,960' 1,557 -2,281 -1,577 1,147 25 Foreign countries2 11,604 16,031' 1,896 953' 1,026' 245' 536 -1,316 -1,023 -57 26 Official institutions 11,730 14,508' 1,334 966' 351' 34' 418 -914 -1,086 -23 27 Other foreign2 -126 1,518 567 -13' 675' 211 118 -400 64 -33 28 Nonmonetary international and regional organizations 1,095 -1,096 1,282 1,655' -2,167 1,716^ 1,021 -966 -554 1,203 MEMO: Oil-exporting countries 29 Middle East3 11,156 7,534 -3,933 -691 -109' -566 -277 -172 -1,743 -262 30 Africa4 -289 -552 -1 0 0 -1 0 0 0 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 Aug. 31, 1983 Rate on Aug. 31, 1983 Rate on Aug. 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 Brazil 444444999999......000000 MMMMMMaaaaaarrrrrr...... 111111999999888888111111 IIttaallyy 111111777777......000000 AAAAAApppppprrrrrr...... 111111999999888888333333 999999......444444999999 OOOOOOcccccctttttt...... 111111999999888888333333 555555......000000 OOOOOOcccccctttttt...... 111111999999888888333333 111333...000 SSSeeepppttt... 111999888222 777777......555555 AAAAAApppppprrrrrr...... 111111999999888888333333 555555......000000 SSSSSSeeeeeepppppptttttt...... 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

A66 International Statistics • November 1983 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 CCoouunnttrryy,, oorr ttyyppee 11998800 11998811 11998822 Apr. May June July Aug. Sept. Oct. 1 Eurodollars 14.00 16.79 12.24 9.23 8.96 9.66 10.00 10.27 9.82 9.54 2 United Kingdom 16.59 13.86 12.21 10.21 10.18 9.91 9.84 9.83 9.63 9.34 3 Canada 13.12 18.84 14.38 9.39 9.30 9.41 9.42 9.49 9.35 9.31 4 Germany 9.45 12.05 8.81 5.16 5.27 5.52 5.54 5.66 5.83 6.13 5 Switzerland 5.79 9.15 5.04 4.20 4.48 4.98 4.77 4.61 4.40 4.07 6 Netherlands 10.60 11.52 8.26 5.19 5.65 5.81 5.58 6.03 6.15 6.07 7 France 12.18 15.28 14.61 12.12 12.51 12.59 12.33 12.33 12.42 12.42 8 Italy 17.50 19.98 19.99 18.20 17.75 17.72 17.50 17.50 17.42 17.51 9 Belgium 14.06 15.28 14.10 11.05 10.04 9.73 9.08 9.25 9.25 9.44 10 Japan 11.45 7.58 6.84 6.34 6.26' 6.46 6.47 6.52 6.68 6.52 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 May June July Aug. Sept. Oct. 1 Argentina/peso n.a. n.a. 20985.00 71100.94 8.08 8.85 8.94 11.22 11.65 2 Australia/dollar1 114.00 114.95 101.65 87.85 87.72 87.54 87.93 88.77 91.37 3 Austria/schilling 12.945 15.948 17.060 17.368 17.974 18.208 18.799 18.754 18.305 4 Belgium/franc 29.237 37.194 45.780 49.239 50.928 51.862 53.609 53.841 53.034 5 Brazil/cruzeiro n.a. 92.374 179.22 465.65 517.28 571.73 643.34 701.38 784.35 6 Canada/dollar 1.1693 1.1990 1.2344 1.2292 1.2323 1.2323 1.2338 1.2326 1.2320 7 Chile/peso n.a. n.a. 51.118 75.405 77.500 78.987 80.011 81.767 83.710 8 China, P.R./yuan n.a. 1.7031 1.8978 1.9895 1.9949 1.9966 1.9843 1.9867 1.9664 9 Colombia/peso n.a. n.a. 64.071 76.153 77.380 78.997 80.707 82.494 84.196 10 Denmark/krone 5.6345 7.1350 8.3443 8.8003 9.1287 9.3142 9.6308 9.5926 9.4172 11 Finland/markka 3.7206 4.3128 4.8086 5.4361 5.5351 5.5863 5.7063 5.7057 5.6390 12 France/franc 4.2250 5.4396 6.5793 7.4163 7.6621 7.7878 8.0442 8.0598 7.9526 13 Germany/deutsche mark 1.8175 2.2631 2.428 2.4665 2.5490 2.5914 2.6736 2.6679 2.6032 14 Greece/drachma n.a. n.a. 66.872 84.105 84.486 84.677 89.217 92.837 92.968 15 Hong Kong/dollar n.a. 5.5678 6.0697 6.9667 7.2822 7.1678 7.4416 8.0079 8.0947 16 India/rupee 7.8866 8.6807 9.4846 9.9895 10.049 10.0875 10.187 10.200 10.229 17 Indonesia/rupiah n.a. n.a. 660.43 968.83 973.00 978.57 984.09 986.24 984.12 18 Ireland/pound1 205.77 161.32 142.05 128.11 123.81 121.87 117.99 117.41 119.15 19 Israel/shekel n.a. n.a. 24.407 43.427 46.138 49.614 55.949 60.059 77.808 20 Italy/lira 856.20 1138.60 1354.00 1467.76 1510.98 1533.41 1589.74 1602.62 1582.81 21 Japan/yen 226.63 220.63 249.06 234.76 240.03 240.52 244.46 242.35 232.89 22 Malaysia/ringgit 2.1767 2.3048 2.3395 2.3009 2.3244 2.3319 2.3523 2.3506 2.3451 23 Mexico/peso 22.968 24.547 72.990 150.27 149.02 149.36 151.59 152.20 157.18 24 Netherlands/guilder 1.9875 2.4998 2.6719 2.7737 2.8557 2.8985 2.9912 2.9844 2.9206 25 New Zealand/dollar1 97.34 86.848 75.101 66.246 65.659 65.383 65.100 65.316 66.162 26 Norway/krone 4.9381 5.7430 6.4567 7.1154 7.2678 7.3280 7.4641 7.4271 7.3244 27 Peru/sol n.a. n.a. 694.59 1390.60 1514.46 1645.99 1853.18 1995.33 2074.82 28 Philippines/peso n.a. 7.8113 8.5324 10.015 10.393 11.050 11.050 11.050 13.750 29 Portugal/escudo 50.082 61.739 80.101 99.521 107.39 119.03 123.03 124.41 124.41 30 Singapore/dollar n.a. 2.1053 2.1406 2.0920 2.1198 2.1294 2.1416 2.1417 2.1350 31 South Africa/rand' 128.54 114.77 92.297 92.31 91.65 91.19 89.55 89.86 88.82 32 South Korea/won n.a. n.a. 731.93 767.96 775.82 779.88 787.19 790.83 791.37 33 Spain/peseta 71.758 92.396 110.09 137.76 143.29 147.973 151.302 152.022 151.30 34 Sri Lanka/rupee 16.167 18.967 20.756 22.970 23.050 24.082 24.257 24.397 24.410 35 Sweden/krona 4.2309 5.0659 6.2838 7.4978 7.6351 7.6936 7.8585 7.8773 7.7844 36 Switzerland/franc 1.6772 1.9674 2.0327 2.0572 2.1123 2.1184 2.1632 2.1623 2.1122 37 Taiwan/Dollar n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 39.420 38 Thailand/baht n.a. 21.731 23.014 22.988 22.990 22.990 22.990 22.990 22.990 39 United Kingdom/pound1 232.58 202.43 174.80 157.22 154.80 152.73 150.26 149.86 149.69 40 Venezuela/bolivar n.a. 4.2781 4.2981 10.233 11.213 12.595 15.600 13.833 13.088 MEMO: United States/dollar2 87.39 102.94 116.57 122.05 125.16 126.62 129.77 129.74 127.50 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

A67 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 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 STEVEN M. ROBERTS, Assistant to the Chairman DONALD L. KOHN, Deputy Staff Director FRANK O'BRIEN, JR., Deputy Assistant to the Board STANLEY J. SIGEL, Assistant to the Board ANTHONY F. COLE, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board WILLIAM R. JONES, Special Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director EDWARD C. ETTIN, Deputy Director MICHAEL BRADFIELD, General Counsel MICHAEL J. PRELL, Deputy Director J. VIRGIL MATTINGLY, JR., Associate General Counsel JOSEPH S. ZEISEL, Deputy Director GILBERT T. SCHWARTZ, Associate General Counsel JARED J. ENZLER, Associate Director RICHARD M. ASHTON, Assistant General Counsel ELEANOR J. STOCKWELL, Associate Director NANCY P. JACKLIN, Assistant General Counsel DAVID E. LINDSEY, Deputy Associate Director MARY ELLEN A. BROWN, Assistant to the General Counsel FREDERICK M. STRUBLE, Deputy Associate Director HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director OFFICE OF THE SECRETARY ROBERT M. FISHER, Assistant Director SUSAN J. LEPPER, Assistant Director WILLIAM W. WILES, Secretary THOMAS D. SIMPSON, Assistant Director BARBARA R. LOWREY, Associate Secretary LAWRENCE SLIFMAN, Assistant Director JAMES MCAFEE, Associate Secretary STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director DIVISION OF CONSUMER (Administration) AND COMMUNITY AFFAIRS GRIFFITH L. GARWOOD, Director DIVISION OF INTERNATIONAL FINANCE JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director EDWIN M. TRUMAN, Director DOLORES S. SMITH, Assistant Director ROBERT F. GEMMILL, Senior Associate Director CHARLES J. SIEGMAN, Senior Associate Director LARRY J. PROMISEL, Associate Director DIVISION OF BANKING DALE W. HENDERSON, Deputy Associate Director SUPERVISION AND REGULATION SAMUEL PIZER, Staff Adviser MICHAEL P. DOOLEY, Assistant Director JOHN E. RYAN, Director RALPH W. SMITH, JR., Assistant Director WILLIAM TAYLOR, Deputy 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

A69 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 STEPHEN R. MALPHRUS, Assistant Staff Director JOSEPH W. DANIELS, SR., Equal Employment Opportunity EDWARD T. MULRENIN, Assistant Staff Director Programs Adviser DIVISION OF DATA PROCESSING DIVISION OF FEDERAL RESERVE BANK OPERATIONS CHARLES L. HAMPTON, Director BRUCE M. BEARDSLEY, Deputy Director CLYDE H. FARNSWORTH, JR., Director GLENN L. CUMMINS, Assistant Director ELLIOTT C. MCENTEE, Associate Director NEAL H. HILLERMAN, Assistant Director DAVID L. ROBINSON, Associate Director ELIZABETH A. JOHNSON, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director RICHARD J. MANASSERI, Assistant Director WALTER ALTHAUSEN, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director CHARLES W. BENNETT, Assistant Director ROBERT J. ZEMEL, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director RICHARD B. GREEN, Assistant Director DIVISION OF PERSONNEL EARL G. HAMILTON, Assistant Director * JOHN F. SOBALA, Assistant Director DAVID L. SHANNON, 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 *On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 Federal Reserve Bulletin • November 1983 Federal Open Market Committee 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 and Advisory Councils 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 THRIFT INSTITUTIONS ADVISORY COUNCIL HARRY W. ALBRIGHT, New York, New York, President THOMAS R. BOMAR, Miami, Florida, Vice President JAMES A. ALIBER, Detroit, Michigan NORMAN M. JONES, Fargo, North Dakota GENE R. ARTEMENKO, Chicago, Illinois ROBERT R. MASTERTON, Portland, Maine JOHN R. EPPINGER, Villanova, Pennsylvania JAMES F. MONTGOMERY, Beverly Hills, California MARY A. GRIGSBY, Houston, Texas FRED A. PARKER, Monroe, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 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- $1.00; 10 or more to one address, $.85 each. TIONS. 1974. 125 pp. OPEN MARKET POLICIES AND OPERATING PROCEDURES— ANNUAL REPORT. STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or one address, $1.75 each. S2.00 each in the United States, its possessions, Canada, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHAand Mexico; 10 or more of same issue to one address, NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. $18.00 per year or $1.75 each. Elsewhere, $24.00 per 1972. 220 pp. Each Volume $3.00; 10 or more to one year or $2.50 each. address, $2.50 each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint THE ECONOMETRICS OF PRICE DETERMINATION CONFERof Part I only) 1976. 682 pp. $5.00. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 BANKING AND MONETARY STATISTICS. 1941-1970. 1976. 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. ens5.00 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. Subscrip- volume $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. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; ERAL RESERVE SYSTEM. 10 or more to one address, $1.25 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. $13.50 each. 48 pp. $.25 each; 10 or more to one address, $.20 each. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SERVE STAFF STUDY, 1981. ERNMENT SECURITIES MARKET; STAFF STUDIES—PART SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 1, 1970. 86 pp. $.50 each; 10 or more to one address, $.40 REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL each. PART 2, 1971. Out of print. PART 3, 1973. 131 pp. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 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. Rhoades. Aug. 1982. 15 pp. July 1983. 114 pp. 120. FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZA- TIONS, by James V. Houpt and Michael G. Martinson. Oct. 1982. 18 pp. 121. REDLINING: RESEARCH AND FEDERAL LEGISLATIVE CONSUMER EDUCATION PAMPHLETS RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. Short pamphlets suitable for classroom use. Multiple 122. BANK CAPITAL TRENDS AND FINANCING, by Samuel H. copies available without charge. Talley. Feb. 1983. 19 pp. 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING Alice in Debitland COMPANIES, by John T. Rose and Samuel H. Talley, Consumer Handbook to Credit Protection Laws May 1983. 11 pp. The Equal Credit Opportunity Act and . . . Age 124. INTERNATIONAL BANKING FACILITIES AND THE EURO- The Equal Credit Opportunity Act and . . . Credit Rights in DOLLAR MARKET, by Henry S. Terrell and Rodney H. Housing Mills, August 1983. 14 pp. The Equal Credit Opportunity Act and . . . Doctors, Law- 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY yers, Small Retailers, and Others Who May Provide Inci- AGGREGATES: A MODEL-BASED APPROACH, by David dental Credit A. Pierce, Michael R. Grupe, and William P. Cleveland, The Equal Credit Opportunity Act and . . . Women August 1983. 23 pp. Fair Credit Billing Federal Reserve Glossary Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint REPRINTS OF BULLETIN ARTICLES If You Borrow To Buy Stock Most of the articles reprinted do not exceed 12 pages. If You Use A Credit Card Series on the Structure of the Federal Reserve System Perspectives on Personal Saving. 8/80. The Board of Governors of the Federal Reserve System Federal Reserve and the Payments System: Upgrading The Federal Open Market Committee Electronic Capabilities for the 1980s. 2/81. Federal Reserve Bank Board of Directors Survey of Finance Companies, 1980. 5/81. Federal Reserve Banks Bank Lending in Developing Countries. 9/81. Monetary Control Act of 1980 The Commercial Paper Market since the Mid-Seventies. 6/82. Organization and Advisory Committees Applying the Theory of Probable Future Competition. 9/82. Truth in Leasing International Banking Facilities. 10/82. U.S. Currency U.S. International Transactions in 1982. 4/83. What Truth in Lending Means to You New Federal Reserve Measures of Capacity and Capacity Utilization. 7/83. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Index to Statistical Tables References are to pages A3 through A66 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 9, 24, 26 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 25 Banks, by classes, 17-21 Assets and liabilities (See also Foreigners) Ownership by individuals, partnerships, and Banks, by classes, 17-20 corporations, 23 Domestic finance companies, 37 Turnover, 14 Federal Reserve Banks, 10 Depository institutions Foreign banks, U.S. branches and agencies, 22 Reserve requirements, 7 Nonfinancial corporations, 36 Reserves and related items, 3, 4, 5, 12 Savings institutions, 28 Deposits (See also specific types) Automobiles Banks, by classes, 3, 17-21, 28 Consumer installment credit, 40, 41 Federal Reserve Banks, 4, 10 Production, 46, 47 Turnover, 14 Discount rates at Reserve Banks and at foreign central BANKERS acceptances, 9, 24, 26 banks (See Interest rates) Bankers balances, 17-20 (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 35 New issues, 34 Rates, 3 EMPLOYMENT, 44, 45 Branch banks, 14, 21, 54 Eurodollars, 26 Business activity, nonfinancial, 44 Business expenditures on new plant and equipment, 36 FARM mortgage loans, 39 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 32 Federal credit agencies, 33 CAPACITY utilization, 44 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 17 ownership of gross debt, 31 Federal Reserve Banks, 10 Receipts and outlays, 29, 30 Central banks, discount rates, 65 Treasury financing of surplus, or deficit, 29 Certificates of deposit, 21, 26 Treasury operating balance, 29 Commercial and industrial loans Federal Financing Bank, 29, 33 Commercial banks, 15, 21, 25 Federal funds, 3, 5, 16, 18, 19, 20, 22, 26, 29 Weekly reporting banks, 18-22 Federal Home Loan Banks, 33 Commercial banks Federal Home Loan Mortgage Corporation, 33, 38, 39 Assets and liabilities, 17-20 Federal Housing Administration, 33, 38, 39 Business loans, 25 Federal Land Banks, 39 Commercial and industrial loans, 15, 21, 22, 25 Federal National Mortgage Association, 33, 38, 39 Consumer loans held, by type, and terms, 40, 41 Federal Reserve Banks Loans sold outright, 20 Condition statement, 10 Nondeposit funds, 16 Discount rates (See Interest rates) Number, by classes, 17 U.S. government securities held, 4, 10, 11, 31 Real estate mortgages held, by holder and property, 39 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 3, 24, 26, 37 Federally sponsored credit agencies, 33 Condition statements (See Assets and liabilities) Finance companies Construction, 44, 48 Assets and liabilities, 37 Consumer installment credit, 40, 41 Business credit, 37 Consumer prices, 44, 49 Loans, 18, 19, 40, 41 Consumption expenditures, 50, 51 Paper, 24, 26 Corporations Financial institutions Profits and their distribution, 35 Loans to, 18, 19, 20, 22 Security issues, 34, 64 Selected assets and liabilities, 28 Cost of living (See Consumer prices) Float, 4 Credit unions, 28, 40 Flow of funds, 42, 43 (See also Thrift institutions) Foreign banks, assets and liabilities of U.S. branches and Currency and coin, 17 agencies, 22 Currency in circulation, 4, 13 Foreign currency operations, 10 Customer credit, stock market, 27 Foreign deposits in U.S. banks, 4, 10, 18, 19, 20 Foreign exchange rates, 66 DEBITS to deposit accounts, 14 Foreign trade, 53 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 54, 56, 59, 60, 61, 63 Adjusted, commercial banks, 14 Liabilities to, 20, 53, 54-58, 62, 64, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 15, 18-20, 39 Stock, 4, 53 Rates, terms, yields, and activity, 3, 38 Government National Mortgage Association, 33, 38, 39 Savings institutions, 28 Gross national product, 50, 51 Type of holder and property mortgaged, 39 Repurchase agreements and federal funds, 5, 18-20 HOUSING, new and existing units, 48 Reserve requirements, 7 Reserves INCOME, personal and national, 44, 50, 51 Commercial banks, 17 Industrial production, 44, 46 Depository institutions, 3, 4, 5, 12 Installment loans, 40, 41 Federal Reserve Banks, 10 Insurance companies, 28, 31, 39 U.S. reserve assets, 53 Interbank loans and deposits, 17 Residential mortgage loans, 38 Interest rates Retail credit and retail sales, 40, 41, 44 Bonds, 3 Business loans of banks, 25 SAVING Federal Reserve Banks, 3, 6 Flow of funds, 42, 43 Foreign central banks and foreign countries, 65, 66 National income accounts, 51 Money and capital markets, 3, 26 Savings and loan associations, 8, 28, 39, 40, 42 (See also Mortgages, 3, 38 Thrift institutions) Prime rate, commercial banks, 24 Savings deposits (See Time and savings deposits) Time and savings deposits, 8 Securities (See specific types) International capital transactions of United States, 52-65 Federal and federally sponsored credit agencies, 33 International organizations, 56, 57-59, 62-65 Foreign transactions, 64 Inventories, 50 New issues, 34 Investment companies, issues and assets, 35 Prices, 27 Investments (See also specific types) Special drawing rights, 4, 10, 52, 53 Banks, by classes, 17-20, 28 State and local governments Commercial banks, 3, 15, 17-20, 39 Deposits, 18-20 Federal Reserve Banks, 10, 11 Holdings of U.S. government securities, 31 Savings institutions, 28, 39 New security issues, 34 Ownership of securities issued by, 18, 19, 20, 28 LABOR force, 45 Rates on securities, 3 Life insurance companies (See Insurance companies) Stock market, 27 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 17-20 New issues, 34 Commercial banks, 3, 15, 17-20, 21, 25 Prices, 27 Federal Reserve Banks, 4, 5, 6, 10, 11 Insured or guaranteed by United States, 38, 39 Student Loan Marketing Association, 33 Savings institutions, 28, 39 TAX receipts, federal, 30 MANUFACTURING Thrift institutions, 3 (See also Credit unions, Mutual Capacity utilization, 44 savings banks and, Savings and loan associations) Production, 44, 47 Time and savings deposits, 3, 8, 13, 16, 17-21 Margin requirements, 27 Trade, foreign, 53 Member banks (See also Depository institutions) Treasury currency, Treasury cash, 4 Federal funds and repurchase agreements, 5 Treasury deposits, 4, 10, 29 Reserve requirements, 7 Treasury operating balance, 29 Mining production, 47 UNEMPLOYMENT, 45 Mobile homes shipped, 48 U.S. government balances Monetary and credit aggregates, 3, 12 Commercial bank holdings, 17, 18, 19, 20 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 10, 29 Money stock measures and components, 3, 13 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 16, 17-20, 22, 31 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 32 Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also Federal Reserve Bank holdings, 4, 10, 11, 31 Thrift institutions) Foreign and international holdings and transactions, 10, 31, 65 NATIONAL defense outlays, 30 Open market transactions, 9 National income, 50 Outstanding, by type and holder, 28, 31 Rates, 3, 26 OPEN market transactions, 9 U.S. international transactions, 52-65 Utilities, production, 47 PERSONAL income, 51 Prices Consumer and producer, 44, 49 VETERANS Administration, 38, 39 Stock market, 27 Prime rate, commercial banks, 24 WEEKLY reporting banks, 18-22 Producer prices, 44, 49 Wholesale (producer) prices, 44, 49 Production, 44, 46 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert P. Henderson Frank E. Morris Thomas I. Atkins James A. Mcintosh NEW YORK* 10045 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 Henry Ponder Albert D. Tinkelenberg Culpeper Communications John G. Stoides and Records Center 22701 ATLANTA 30301 William A. Fickling, Jr. Vacancy John H. Weitnauer, Jr. Robert P. Forrestal Birmingham 35283 Samuel R. Hill, Jr. Fred R. Hen- 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 Joseph P. Garbarini 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 A. 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

ALL 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