Federal Reserve Bulletin, 1984-01

VOLUME 70 • NUMBER 1 • JANUARY 1984 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 B"LLETIN 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 L A FINANCIAL PERSPECTIVE ON Admission of seven state banks to member- AGRICULTURE ship in the Federal Reserve System. For more than a decade, the financial expe- 23 RECORD OF POLICY ACTIONS OF THE rience of the agricultural sector has been FEDERAL OPEN MARKET COMMITTEE dominated first by the advent, and then by the aftereffects, of a farm boom of major At the conclusion of its meeting on Novemproportions. ber 14-15, 1983, the Committee decided that no change should be made at this time in the degree of restraint on reserve positions. The members anticipated that such a 14 STAFF STUDIES policy would continue to be associated with "The Effects of Fiscal Policy on the U.S. growth of both M2 and M3 at an annual rate Economy" analyzes the short- and interme- of around 8V2 percent for the period from diate-run effects of a permanent, bond-fi- September to December. The members also nanced reduction in U.S. personal income agreed that the need for greater or lesser taxes on interest rates, output, prices, ex- restraint on reserve conditions should be change rates, and the current account. evaluated against the background of developments relating to the strength of the economic recovery, the outlook for inflation, 16 INDUSTRIAL PRODUCTION and conditions in domestic and international financial markets. Depending upon such Output rose about 0.5 percent in December developments over the weeks ahead, great- 1983. er restraint would be acceptable in the event of more rapid growth in the broader monetary aggregates, while lesser restraint 19 ANNOUNCEMENTS would be acceptable in the context of a Issuance of statement regarding applica- significant shortfall in such growth. The tions by three bank holding companies to Committee anticipated that, given the relaacquire state-chartered banks in South Da- tively slow growth of Ml in October, its kota. expansion at an annual rate of around 5 to 6 percent from September to December Revision of Regulation Y. would be consistent with the fourth-quarter Amendments to Regulation O. objectives for the broader aggregates, and that expansion in total domestic nonfinan- Amendments to Regulation Q. cial debt would remain within the range of Revision of Regulation X. m to 1V/2 percent established for the year. It was agreed that the intermeeting range Changes in statistical releases on the money for the federal funds rate, which provides a stock and reserves data. mechanism for initiating consultation of the Proposal to implement part of the Interna- Committee, would remain at 6 to 10 percent. tional Lending Supervision Act of 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 LEGAL DEVELOPMENTS A68 BOARD OF GOVERNORS AND STAFF Amendments to Regulations C, D, K, 0, A70 FEDERAL OPEN MARKET COMMITTEE and Q; revisions to Regulation X; amend- AND STAFF; ADVISORY COUNCILS ments to Rules Regarding Delegation of Authority; various bank holding company All FEDERAL RESERVE BOARD and bank merger orders; and pending cases. PUBLICATIONS AI FINANCIAL AND BUSINESS STATISTICS A75 INDEX TO STATISTICAL TABLES A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A77 FEDERAL RESERVE BANKS, BRANCHES, A52 International Statistics AND OFFICES A67 GUIDE TO TABULAR PRESENTATION, A78 MAP OF FEDERAL RESERVE SYSTEM STATISTICAL RELEASES, AND SPECIAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture Emanuel Melichar, of the Board's Division of incomes above the pre-boom levels and to bid up Research and Statistics, prepared this article. real prices of farmland. Then, in 1978 and 1979, livestock and crop prices again surged upward, For more than a decade, the financial experience giving another boost to income and expectations. of the agricultural sector has been dominated The boom ended in 1980, when farm commodfirst by the advent, and then by the aftereffects, ity prices failed to advance while prices in generof a farm boom of major proportions. Such al were rising rapidly. During the next two years, episodes have been relatively rare—two earlier heavy harvests and worldwide economic recesin this century, during and immediately after the sion lowered prospects for a rebound in farm World Wars, and two in the nineteenth century, prices and income, and farmland prices in the also triggered by the commodity demands of major grain and livestock areas fell sharply. At U.S. and European wars. But the effects of each the same time, farmers with short-term debt or boom extended over several decades, shaping variable-rate loans were hit by a large increase in the fortunes of an entire generation of farmers interest rates. These developments swelled the and their landlords, lenders, and suppliers. In number of farmers in serious financial difficulty. each case, the vast majority of farmers were Although public attention naturally has folifted by an initial wave of unanticipated prosper- cused on farmers in financial distress, such cases ity. After the booms, however, their experience have not represented the norm of farm condivaried according to how dependent they had tions. On balance, real profits from farm assets become on continued high commodity prices, and real farm wealth have remained well above and thus how financially vulnerable they were as pre-boom levels. The first part of this article prices and incomes retreated. After each boom discusses this experience and its implications for some farmers experienced lasting financial im- farm policy. provement, while others endured prolonged fi- These observations on overall farm financial nancial stress or went bankrupt. conditions, however, mask highly diverse expe- The current episode has retraced much of this riences among various groups of farmers. Ever familiar pattern. When, in 1972 and 1973, huge since interest rates rose far above the average increases in the prices of major farm commod- rate of return to assets, a sizable group of heavily ities ushered in the boom, virtually all producers indebted operators has faced financial stress. In benefited. Many continued to enjoy higher in- examining their problem and numbers, the seccome for much of the decade; for some groups, ond part of the article finds that, although they however, the prosperity was more fleeting. Live- are a minority, these farmers owe much of the stock prices and profits broke first, in 1974, while outstanding farm debt. crop prices remained at high levels for two more As heavily indebted farmers began to have years. By then some farmers, particularly in problems meeting loan payments, loan losses at marginal farming areas, had made investments rural banks increased. On balance, however, whose success depended on continued high such losses were absorbed without strain beprices; these farmers were plunged into financial cause these banks had built up their profit and difficulty soon after grain prices declined in 1976. capital positions during the farm boom. The While such farmers pressed for government as- article concludes with a look at the experience sistance, the majority continued to enjoy real and condition of rural banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1984 PROFITABILITY OF AGRICULTURE assets, is derived as indicated in table 1. It is income after operating expenses, depreciation, The last post-boom decline in farm earnings and imputed charges for the value of the labor bottomed out in the mid-1950s. For the rest of and management performed by farm operators, that decade and throughout the 1960s, real in- but before interest payments by those operators come from farm assets grew fairly steadily. In- and landlords who are in debt. Such income come growth in turn produced rising real land underlies the value of farm assets, especially the prices and favorable experience with debt financ- value of farmland. ing. These developments shaped attitudes that The trends in farm income of the past 30 years affected the way farmers responded to the in- are shown in chart 1, adjusted for general price come boom of the 1970s. inflation and presented in 1983 dollars so that historical data can be more readily related to current values. Three aspects of the record of Income from Assets income from assets stand out: the significant uptrend before 1972, the huge rise in the 1970s, Income from assets, an estimate of the profits and the wide margin of the current level over preattributable to the ownership and control of farm boom levels. 1. Farm income, returns, assets, and debts of operators and landlords, selected years, 1953-831 Billions of 1983 dollars Item 1953 1958 1963 1968 1973 1978 1983 Derivation of net income and total returns Gross income (including net CCC loans) 111 115 118 124 192 171 149 LESS: Wages and perquisites paid to hired labor 9 9 10 10 10 12 12 LESS: Other operating expenses, excluding interest 43 50 56 61 81 84 74 LESS: Depreciation allowances and accidental damage 10 11 12 13 15 21 19 EQUALS: Income from assets and operators' labor and management 48 46 41 40 85 54 45 LESS: Income imputed to operators' labor2 36 27 23 26 23 21 19 LESS: Income imputed to operators' management work 4 4 4 5 7 7 6 EQUALS: Income from assets 8 15 13 10 55 27 21 PLUS: Real capital gain on assets3 -23 33 9 0 88 90 4 EQUALS: Total return from assets -14 47 22 10 143 117 24 LESS: Interest paid 2 3 5 7 9 14 21 PLUS: Real capital gain on debt3 1 1 1 5 10 13 8 EQUALS: Total return from equity -16 45 19 8 143 116 12 Balance sheet, January 1 Assets 455 480 547 635 715 979 966 LESS: Debt (including CCC loans) 49 57 82 112 126 171 207 EQUALS: Equity 406 423 464 522 589 808 759 1. Data are for the farm sector excluding farm households percentage was then multiplied by the USDA estimate of (operators' dwellings, household equipment and furnishings, wages and perquisites paid to hired labor. For recent years, and all financial assets except currency, bank demand depos- estimates for imputed labor obtained in this way are considerits, and stock in farmers' cooperatives). Except as noted ably above those of the USDA. Consequently, income from below, data shown are series published by the U.S. Depart- assets and total returns from assets and equity derived using ment of Agriculture (USDA), adjusted for general price the interim labor series are correspondingly lower than inflation by the implicit price deflator for personal consump- present USDA estimates of these series. tion expenditures (estimated 1983 average = 1.00). Data for 3. Real capital gain (loss) on farm assets is the amount by 1983 are estimates based on forecast ranges published by which the annual increase in total market value of assets is USDA in late 1983. greater (less) than the sum of net investment and of the 2. Because published USDA data for income imputed to change in general purchasing power of the total funds tied up operators' labor appear to have substantially understated the in these assets. Real capital gain (loss) on debt is the decrease value of farm labor performed by operators and unpaid family (increase) in general purchasing power of the funds owed. workers, data shown are an interim series estimated by the Changes in general purchasing power are measured by the author. The annual percentages of total farm work performed implicit price deflator for personal consumption expendiby operators and unpaid family workers and by hired labor tures. The estimates shown thus differ from those of the respectively were estimated from available data from USDA USDA, which uses the consumer price index in this computaand the Bureau of Labor Statistics on employment and man- tion and has published these data only in current dollars. hours. The ratio of the operator percentage to the hired labor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 3 1. Farm income Pricing of Farm Assets As is true for any income-producing asset, bidding by participants in the market for land sets its price and hence implicitly its rate of return. In the market for farmland, the buyers and sellers are mainly farmers and local landlords—the latter mostly retired farmers, farm widows, and nonfarmer heirs. Active farmers dominate the buyer group. Thus the rate of return to farm assets is set by farmers themselves in the farmland market. Farmers consider many factors when participating in the determination of land values, among them the income and risks of farm and alternative investments. Through their collective appraisal of these factors, they establish land prices consistent with their required rate of return on farm Percent assets. Asset values are thus established at some multiple of current income from assets. What that multiple will be depends both on the required rate of return and on the expected growth, if any, in income. 1955 1960 1965 1970 1975 1980 If income is not expected to change, asset Profit margin is net income from assets as a percentage of gross values are established at the level at which the income. Income series are defined in table 1. current income fully satisfies the required rate of return. If, for example, the required rate of Except for the rise of the 1970s, these aspects return is 5 percent, then assets will be priced at a of farm profits are not widely recognized because multiple of 20 times their current income, and the attention has focused on a measure of income rate of return in the form of income thus also will that includes the labor and management earnings be 5 percent. of operators and is net of interest payments. That Income may change, however, regardless of mixture, in effect, of wages, salaries, and income expectations. If participants in asset markets to equity has often given misleading signals collectively believe that the change will last, then about the profitability of farming. In the 1960s, asset values respond by changing in proportion such income was stagnant, as reduced labor to the change in income. For instance, if income requirements offset an upward trend in income from assets rises 10 percent, then asset values from assets. In the 1980s, such income has also rise 10 percent. In the example used above, declined below pre-boom levels as interest this rise in asset values restores the multiple of 20 charges have risen sharply; meanwhile, income times current income, to continue to provide the from assets has remained above pre-boom levels. required return of 5 percent. Clearly, if real income from assets has been When increases in income recur regularly, or positive and above pre-boom levels, then most of participants in asset markets have other reasons the farmers who are in financial distress are to expect growth in income, asset pricing takes those with debt-service requirements that exceed account of the capital gains that, as seen above, such income. A detailed look at the problem and result from such income growth. The expected numbers of indebted operators follows a discus- annual capital gains substitute for income in sion of aggregate farm profitability and income- satisfying the required rate of return. For examasset relationships. ple, if the required rate of return is still 5 percent, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1984 2. Farm assets and income from assets and hence of the rate of income return. Changes Ratio scale, Ratio scale, in expectations of income growth or in the rebillions of 1983 dollars _ billions of 1983 dollars quired rate of return do cause large changes in asset values. Over the past three decades, farm asset values have reflected income developments in accordance with these principles. Asset values, dominated by changes in land prices, have tended to follow trends in income from assets (chart 2). With income generally trending upward, expectations of continued income growth apparently prevailed. Except for the early years of the boom, when income outran land prices, assets i • i i i • i i i M 'HMMBIBHHHRMHHHi were priced at an average multiple of about 50 - • ' ••• ' Percent times income from assets, and the rate of income Rate of income return to assets return thus averaged 2 percent. Real Capital Gains—the 1960s Income and assets are defined in table 1. From the mid-1950s through the 1960s, real inbut now income from assets is expected to grow come from assets rose by about 3 percent annualby 3 percent annually, then assets will be priced ly. Consequently, significant real capital gains at a multiple of 50 times current income, and the accrued to owners of farm real estate during most rate of income return will be only 2 percent. years of that period (chart 3). These increases in Again, asset values respond proportionately to the real value of farm real estate (excluding any income changes that appear permanent, operators' dwellings), measured as gains in exwhether they are expected or not. Thus if income cess of those resulting simply from net investincreases by 10 percent, then asset values again ment and general price inflation, totaled $145 also rise by 10 percent, to restore the multiple of billion (in 1983 dollars) over this period, an 50 times earnings. Or if, contrary to expectations average of nearly $10 billion per year. of growth, income from assets declines, then During the same period, the rate of income asset values also fall in proportion. return to farm assets averaged 2 percent. Taken Such deviations from expectations, or other developments, may cause market participants to 3. Real capital gains on farm real estate reassess prospects for income. As they alter their Billions of 1983 dollars collective expectations, asset values may change significantly. If, for example, expected growth in income falls from 3 percent to zero while the 1 required rate of return stays at 5 percent, then asset values will fall from a multiple of 50 times 1 . II current income to one of only 20 times current 1 .11.1, l . l l l l l. II 1 income. In addition, asset values change when 1 • 1the required rate of return changes. To summarize, asset values respond proportionately to changes in current income from assets, other factors remaining unchanged. Expectations of income growth do not in themselves change asset values, but enter importantly ' 1955' ' 'i960' ' '1965* ' '1970* ' '1975* ' '1980* ' 10° into determination of the price-earnings multiple Real capital gain is defined in table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 5 4. Rates of return to farm assets Union to purchase large quantities of U.S. grain Percent after one of its periodic droughts depleted domestic stocks and moved prices upward. Meanwhile, domestic demand for grain remained high as livestock production approached a cyclical peak. Later, the U.S. drought of 1974 and rising /real incomes in food-deficit nations also worked to raise crop prices and generate export demand. For farmers contemplating land purchases and other capital expansion, the income gains posed a familiar question: Was this a temporary boom, t m i t i m t i t m i t ! mi i i i m i i i w t i 1955 1960 1965 1970 1975 1980 in which case debt-financed capital purchases would be regretted, or was it a lasting phenome- Returns and assets are defined in table 1. Total return is the sum of non, promising fortunes for those who seized the income from assets and real capital gains on assets. opportunity? The answer seemed obvious in the light of two decades of rising real farm income together, income and real capital gains on all and wealth, successful employment of financial assets provided a total rate of return averaging 4 leverage through debt financing, and greater pubpercent (chart 4). lic concern about future scarcity of natural re- Government programs contributed important- sources. It appeared that agriculture throughout ly to the growth of real income from assets in the world had entered a new era, in which it these years. Technological advances were reduc- would become progressively harder for the suping labor and other operating costs per unit of ply of food to meet expanding demand, so that output as well as raising total output per unit of American farmers would enjoy steadily rising assets. Farm output prices would thus have exports and income. tended to fall, but government price support Farm asset values responded to the new inprograms prevented such declines. Therefore, come levels and the strong expectations of conreal income from assets tended to rise, and with tinued income gains. From 1972 through 1979, it total real farm wealth. real capital gains on farm real estate (excluding Toward the end of the decade, these effects operators' dwellings) totaled $447 billion (in 1983 began posing a dilemma for farm policy. As real dollars), an annual average of $56 billion. Chart 3 income from assets rose, ever-larger increments shows how these gains dwarfed those of the were required to maintain the growth rate pre- preceding decades; and chart 4 shows that in vailing at that time. But, from the viewpoint of most of these years, they also exceeded even the consumers and taxpayers who provided those new higher income from assets, yielding some increments, the rising real wealth of the recipi- total rates of return in double digits. But the ents reduced the need for governmental assist- increases in asset values also were large enough ance. Yet, without that income growth, a signifi- to restore the earlier rate of income return, 2 cant share of that wealth might well disappear. percent. Thus, by the late 1970s, farmers had As the 1970s opened, rising concern about the capitalized the new level of income from assets cost of farm programs foreshadowed struggles at a multiple that appeared to reflect expectaover farm policy—when suddenly a boom in tions that income would tend to rise further. farm exports changed the whole picture. Real Capital Losses—the 1980s Real Capital Gains—the 1970s Instead of rising, income fell at the start of the The export boom that developed in the early new decade, and, just as important, prospects for 1970s yielded an enormous increase in farm near-term income growth dimmed. Even the earnings. The unexpected decision by the Soviet longer-term prospects based on progressive re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1984 source scarcity were increasingly challenged and standing farm debt peaked in 1921. During the downgraded. Government assistance now could hard times that followed, debt steadily fell— replace only a portion of the income that was not mainly through foreclosures and bankruptcies— forthcoming from commodity markets. Inevita- but not nearly so fast as asset values. The ratio of bly, real asset values began to decline. debt to assets peaked at 30 percent in 1933. By Real capital losses on farm real estate have then, attitudes toward debt were such that, as totaled about $149 billion (in 1983 dollars) in the farm prices and incomes improved, farmers refirst four years of the eighties, mostly in 1981 and paid rather than increased debt. Debt reduction 1982 (chart 3). The decline in real farmland prices continued through the boom in farm income of was halted when near-term income prospects World War II. The amount of farm debt outimproved with announcement of the payment-in- standing bottomed in 1946, and the ratio of debt kind program. to assets hit a low of 8 percent in 1948. Even though asset values have declined, much As the wartime boom in farm income was of the legacy of the boom remains. About $300 extended, first by the Marshall Plan and then by billion of the newly created wealth still exists, the Korean War, farmers gradually began to along with many billions of new debt incurred as expand their debt. Nonetheless, in the 1950s, the assets were transferred at higher prices. As re- level of farm debt was still low enough to help cent experience has vividly demonstrated, the minimize the financial distress from hardships amount of that wealth that remains in existence and transitions that included severe drought, will depend on the extent to which the required declines in crop and livestock prices, and reducrate of return is forthcoming. The debt, however, tions in total crop acreage from its wartime level. will require payment of scheduled interest and amortization, almost regardless of trends in asset values or income. The assets still appear to be Debt Expansion priced at a multiple that demands significant growth in income. Attitudes toward debt formed in the 1920s The situation resembles that at the end of the proved too conservative for the new era of 1960s, although it differs in some ways. Even income growth and capital gains that unfolded after adjustment for inflation, the dollar amounts after the mid-1950s. Farmers willing to borrow involved are much larger, and thus government more freely made faster financial progress, and assistance would have to be proportionately larg- this new lesson was soon learned by both farmer to have the same impact. Government aid at ers and farm lenders. The leading college textthe greatly increased 1983 level proved able to book on farm finance, which through four edistem the slide in asset values, but continued tions had cautioned on its first page that credit assistance on that scale appears unlikely. The could be as dangerous as a buzz saw and that greater farm wealth adds to doubts about the "many a farmer would be better off today if he propriety and equity of increasing aid. More- had never had a chance to borrow money at all," over, there is now considerable pressure to re- first abbreviated and then dropped such warnstrain total growth in government spending. Thus ings. Growth in debt was relatively rapid (chart more of the post-boom adjustment remains to be 5). By the beginning of 1972, the ratio of debt to worked out in the commodity and land markets. assets had climbed back to 18 percent. With the onset of the boom, rapid expansion of debt continued, but it was now accompanied by INDEBTED FARMERS more rapid increases in asset values. Thus, although the ratio of debt to assets did not in- During the 1920s and the early years of the Great crease, a large increment of debt was taken on. Depression, farmers relearned the lesson that By 1980, real asset values had risen by 73 pertheir forebears had absorbed in earlier "panics:" cent, or $480 billion (in 1983 dollars), while real to be deeply indebted after the collapse of a debt had risen by 61 percent, or $74 billion. If boom has dire, often fatal, consequences. Out- these additional asset values had continued to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 7 5. Farm assets and debt interest rates rose and fell sharply in national Ratio scale, Ratio scale, money markets during periods such as 1969-70 billions of 1983 dollars billions of 1983 dollars and 1973-74. Rates charged on farm loans by these banks were also relatively unchanged during these periods, as chart 6 demonstrates, and so clearly these rates reflected the banks' internal cost of funds plus a mark-up, rather than the potential earnings of these funds if invested in national money markets. Rural banks probably continued to set their 400 100 farm loan rates in this manner, but their internal cost of funds began to reflect cyclical movements in money market rates. This change occurred after 1978, when banks—with the authorization 180 i • i i i a i i i M M i a n i a i i i a ii 45 of six-month money market certificates—were ^ c e nt allowed to accept smaller and shorter-term deposits bearing market-related rates, and competitive factors induced them to do so. As market rates of interest rose during 1979-81, rural depositors shifted a large proportion of their depos- 1955 1960 1965 1970 1975 1980 its into the new certificates. By mid-1981, these Assets and debt are defined in table 1. certificates constituted about 30 percent of the total resources of the typical rural bank. In yield returns sufficient to service the additional addition, large certificates of deposit, also beardebt, all would have been well because the two ing money market rates, accounted for 7 percent had risen in proportion. But any reduction in the of total resources. Banks also were paying marincome flow would mean a problem for debtors, ket-related rates on small-saver certificates with who still had to meet scheduled interest and a permitted maturity of 30 to 48 months. Thus, as repayments on the additional debt. Such a reduc- a large proportion of the liabilities of rural banks tion occurred in 1980. quickly came to bear market-related yields, farm and other loan rates at these banks necessarily Higher Interest Rates began to track market rates. While those farmers who typically borrowed from large banks and Another misfortune hit many farm borrowers in 1980. Interest rates rose to levels that they could 6. Average interest rates on farm loans at not have anticipated. Furthermore, rates rerural banks compared with prime rate mained very high until late 1982 and are still, for most farm borrowers, significantly above pre- Percent 1980 levels. The borrowers most surprised by these interest rate developments were those using shortterm loans from rural banks, because, before 1979, these borrowers had been virtually insulated from cyclical changes in loan rates. Chart 6 illustrates the marked change in their experience. Before 1979, fixed ceilings on interest rates applied to all deposit instruments that rural banks could readily market to their predominantly local depositors. Thus the cost of loanable funds at these banks changed little even as the level of Quarterly data, first day of quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1984 2. Farm cash flow, selected years, 1953-83' Billions of 1983 dollars Item 1953 1958 1963 1968 1973 1978 1983 Derivation of cash flow Gross income (including net CCC loans) 111 115 118 124 192 171 149 LESS: Wages and perquisites paid to hired labor 9 9 10 10 10 12 12 LESS: Other operating expenses, excluding interest 43 50 56 61 81 84 74 EQUALS: Cash flow before interest payments 59 56 52 54 100 75 64 LESS: Interest paid 2 3 5 7 9 14 21 EQUALS: Cash flow after interest payments 56 53 48 47 91 61 44 PLUS: Net borrowing (excluding CCC loans) -1 6 8 4 18 23 4 EQUALS: Funds available for investment, consumption, and saving.. 55 59 56 51 109 83 47 1. See table 1, note 1. from production credit associations (PCAs) were its boom peaks, it remains well above its preaccustomed to such cyclical movements in their boom level. But real cash flow after interest loan rates, those movements were a new experi- payments has fallen to levels well below those ence for borrowers from smaller rural banks. before the boom. This series illustrates the cash- Higher interest rates affected individual farm- flow experience of farmers whose relative ers in different ways. Those with little or no debt amount and cost of debt were close to the sector were largely unaffected, as were those whose averages—in 1983, a debt-asset ratio of 21 perdebt consisted mainly of term loans at fixed cent and an interest rate of 10.3 percent. Farmers rates. The large number with mortgage loans more heavily indebted or paying a higher average from federal land banks experienced a gradual interest rate have fared correspondingly worse, and relatively moderate increase in their variable unless they are among those earning an exceprates. Those borrowing from PCAs, also with tionally high rate of return on their assets. variable-rate loans, faced quicker and larger increases. Rates for borrowers from rural banks rose and fell with about the same lag as those at Current Impact of Debt on Profits PCAs, but reached a higher average level—about 19 percent—at the 1981 peak. Most severely Table 3 illustrates the joint impact of the level of affected were borrowers from large banks, at debt and the rate of interest on a farmer's income which the average rate on farm loans reached 21 return to equity. The calculations assume a farm percent in mid-1981. with the recent average rate of income return to The differential impact of higher interest rates assets for the farm sector, 2 percent. As shown, is apparent in comparisons of real cash flow this was also the rate of return to equity if the before and after payment of interest (table 2 and farmer had no debt. If, however, he had debt chart 7). Real cash flow before interest payments equal to 20 percent of assets and paid an average depicts the experience of farmers with little or no interest rate of 11 percent—both near the sector debt. Although it has declined significantly from averages—then his return to equity was near zero. Higher ratios of debt to assets meant losses: moderate if debt consisted mainly of old fixed-rate mortgage loans at an interest rate like 7 7. Farm cash flow percent, more severe if it consisted of short-term Ratio scale, billions of 1983 dollars loans at a rate like 15 percent. The table indicates that highly leveraged operators may have had operating losses equal to a fourth or a third of their equity in each of the past four years while similarly situated farmers with no debt were operating profitably. Unless such heavily indebted farmers had substantial finan- Cash flow is defined in table 2. cial reserves or other resources, they have had to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 9 3. Rate of income return to equity, by relative level tors reported that their primary occupation was and cost of debt1 farming, and of those, nearly half were over 65 Percent years old. In the group of large and mediumsized farms that includes most full-time family Interest rate on outstanding debt RRaattiioo ooff ddeebbtt ttoo aasssseettss (percent) operations, one-third have debt-asset ratios that ((ppeerrcceenntt)) suggest financial stress. At the same time, nearly 7 11 15 one-third of the farmers in this group have little 0 2.0 2.0 2.0 10 1.4 1.0 .6 or no debt. 20 .8 -.2 -1.2 For farm lenders, however, the amount of debt 30 -.1 -1.9 -3.6 40 -1.3 -4.0 -6.7 owed by farmers experiencing financial stress is 50 -3.0 -7.0 -11.0 60 -5.5 -11.5 -17.5 the important statistic. From this point of view, 70 -9.7 -19.0 -28.3 the picture is more disturbing. Nearly two-thirds 80 -18.0 -34.0 -50.0 90 -43.0 -7Q n -115.0 of the total debt is owed by operators with debtasset ratios greater than 40 percent (table 4). 1. This table assumes a farm on which the rate of income return to assets is 2 percent, approximately the average for the farm sector in Thus lenders see much of their money in the 1980-83. To illustrate the calculations reported here: if the farm also hands of operators who are in financial trouble. had the average ratio of debt to assets for the farm sector, 20 percent, and the average interest rate, 11 percent, its rate of income return to equity was -0.2 percent. liquidate assets in order to reduce their debt 4. Estimated percentage distribution of farm burden. In each recent year, according to sur- operators and their debt and assets, by relative debt level and size, January 1, 1984' veys of lenders, perhaps 3 to 5 percent of farmers have been forced to liquidate productive assets. Ratio of farm operator debt to assets Smaller percentages were reported to have left (percent) SSiizzee ooff ffaarrmm22 farming through forced liquidations or foreclo- 71 and sures. 0-10 11-40 41-70 over Total Operators All farms 58 24 11 8 100 Extent of Financial Problems Large 21 36 25 19 100 Medium... 34 35 18 13 100 Small 55 26 11 8 100 Because the incidence of severe financial prob- Very small 73 16 7 4 100 lems among farmers depends largely on relative Debt indebtedness, the distribution of operators and All farms 5 32 32 31 100 their debt by the ratio of debt to assets helps to Large 3 27 33 38 100 Medium 5 34 32 29 100 indicate how many operators are in financial Small 8 37 29 26 100 Very small 8 38 31 23 100 difficulty and how much of total farm debt such farmers owe. These data were provided by the Assets 1979 Farm Finance Survey, conducted by the All farms 47 32 14 8 100 Large 27 38 22 14 100 Bureau of the Census early in 1980. Table 4 Medium... 38 38 16 8 100 shows estimates based on the survey data, but Small 61 26 8 4 100 Very small 74 18 6 3 100 adjusted and updated to indicate current distributions. 1. Estimates shown are based on data from Bureau of the Census, 1979 Farm Finance Survey, as tabulated by U.S. Department of If, from the discussion above, it can be con- Agriculture, Economic Research Service, and adjusted and updated cluded that operators with a debt-asset ratio by the author. Comparison of assets and debt reported by operators in the survey with estimates of these items made by USDA and the greater than 40 percent are experiencing financial author indicated that total assets had been underreported by 18 stress, then about one-fifth of all farmers are in percent, and total debt by 31 percent. For 1980-83, estimates made by USDA and the author indicated that the value of assets covered by the this predicament (table 4). This overall propor- survey had increased 9 percent, and the amount of debt 28 percent. tion is misleading, however, in that few of the 1.2 These adjustments therefore raised debt-asset ratios above those found in the original survey. million operators of "very small" farms (who 2. Farms are classified by size according to the typical annual value account for 50 percent of all operators) have of farm products sold, as follows: large, $200,000 and over; medium, $40,000 to $199,999; small, $10,000 to $39,999; and very small, under much debt. Less than one-third of these opera- $10,000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1984 One summary finding from the adjusted survey only 6 percent of banking resources. For comdata suggests the nature of farm credit difficul- parison, data were also compiled for other smallties: 83 percent of total debt owed by operators is er banks (assets under $500 million). owed by the 29 percent of operators with debtasset ratios that exceed the average for all operators (23.3 percent). Thus the bulk of farm debt is Loan Losses owed by a sizable minority of operators whose relative debt is large enough that, at current During the 1970s, loan losses reported by agriculinterest rates, scheduled debt service may easily tural banks clearly reflected the favorable credit exceed income from assets. Until the current gap experience of most farmers and farm-related between the average rate of return to assets and businesses. Provision for loan losses averaged farm loan interest rates is significantly narrowed, 0.2 percent of outstanding loan volume during these borrowers and their lenders will continue that decade, well below the average at other to face debt-service problems. smaller banks, at which losses rose substantially during the business recession of 1974-75 (see chart 8). Notably, the ratio of loan losses did not EXPERIENCE OF RURAL BANKS rise as a result either of the problems of livestock producers that began in 1974, or of those of crop The financial problems faced by the heavily indebted operators who owe much of farm debt have fostered questions about the condition of 8. Financial experience at agricultural and rural banks with a concentration in farm lending. other smaller banks Such concerns may be grounded in part on Percent experience after earlier farm booms in which credit played a prominent role. During the 1920s, for example, many farmers were unable to service bank loans they had obtained to finance capital spending during and immediately after World War I, when increased export demands had stimulated production. About 6,000 banks (about one-fifth of all banks) failed during that decade, most of them in rural areas. Conditions at rural banks have been much different in this post-boom period. In particular, federal deposit insurance has virtually eliminated the runs on banks that once would have threatened their survival soon after loan-loss problems surfaced. Also, most rural banks prospered along with their farm customers, substantially improving their profit and capital positions. Lately, however, loan losses have risen noticeably. To examine the experience and condition of banks with relatively heavy involvement in farm lending, data were compiled for "agricultural" banks, at which total farm loans accounted for 25 Data are for banks with total assets under $500 million on December percent or more of total outstanding loans. Al- 31. Agricultural banks are banks at which farm loans (loans secured by farm real estate and other loans to farmers) accounted for 25 percent though the number of such banks has been or more of total loans outstanding on December 31. decreasing, there are still about 4,300 of them, Loan-loss ratio is the annual provision for loan losses as a percentage of total loans outstanding on December 31. accounting for 30 percent of all commercial Return to equity is net income after taxes as a percentage of the banks, and they hold two-thirds of the farm loans average of equity at the beginning and end of the year. Capital ratio is capital and surplus as a percentage of total assets, in the banking system even though they hold December 31. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 11 9. Farm loans outstanding at The loan-loss picture at agricultural banks major institutional lenders changed significantly during 1980-82 as increasing numbers of farm borrowers came under financial stress and farm^related businesses were hit by the downturn in farm income and by two general business recessions. By 1981, the provision for loan losses had doubled from its earlier low level, and in 1982 it rose further, to 0.8 percent of outstanding loans, putting it slightly above that at other smaller banks. As in previous years, the distribution of agricultural banks by loan losses was highly skewed: the average loss ratio was raised because heavy losses occurred at some banks while a majority reported relatively small losses. In 1982, onefourth of agricultural banks required little or no provision for losses—less than 0.1 percent of outstanding loan volume (table 5). At the other t WSm M Ji Ml i iM ' t^Mff BHiiilEil extreme, 5 percent of the banks had to provide 1977 1979 1981 1983 for losses greater than 2.5 percent of outstanding loans, the level at which losses would begin to producers in 1976-77. Many of the troubled farm exceed net income before losses at a typical loans of this period, which otherwise might have agricultural bank. In contrast, in no year of the caused losses for the banks, were refinanced by 1970s did more than 1 percent of agricultural the Farmers Home Administration (FmHA) un- banks have such heavy losses. der several credit programs: disaster loans, made mostly to farmers with crop losses caused by drought; the Emergency Livestock Credit Act of Bank Profits 1974; and the Economic Emergency Credit Act of 1978 and its extension, under which the The profitabilty of agricultural banks is a summa- FmHA lent about $6.6 billion from 1978 to 1981. ry indicator that quickly reflects the net effect of Chart 9 illustrates the relatively large increases in loan losses and other factors affecting overall FmHA lending during these years. condition. Over time, bank profitability is impor- 5. Percentage distribution of agricultural banks, by provision for loan losses, 1970-82' Provision for loan losses as percentage of loans at bank2 YYeeaarr Under 0.10 to 0.40 to 0.70 to 1.00 to 2.50 and T . 1 0.10 0.39 0.69 0.99 2.49 over 1970 49 28 14 5 4 1 100 1971 51 27 13 4 4 1 100 1972 54 27 12 3 4 * 100 1973 52 26 14 4 3 * 100 1974 49 29 14 4 4 1 100 1975 51 29 13 4 3 1 100 1976 45 33 14 4 4 1 100 1977 50 30 12 4 4 1 100 1978 43 35 12 4 5 1 100 1979 38 39 13 5 5 1 100 1980 33 34 17 7 8 2 100 1981 31 29 19 7 11 3 100 1982 25 24 18 10 18 5 100 1. Agricultural banks are banks with total assets under $500 million 2. Annual provision for loan losses as a percentage of total loans at which farm loans accounted for 25 percent or more of total loans on outstanding on December 31. December 31 of the year specified. *Less than 0.5 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Federal Reserve Bulletin • January 1984 6. Percentage distribution of agricultural banks by return to equity, 1970-82" Net income as percentage of average equity at bank2 Year 25 and Negative Oto 4 5 to 9 10 to 14 15 to 19 20 to 24 Total over 1970 24 43 21 100 1971 26 41 20 100 1972 28 43 18 100 1973 12 39 33 100 1974 12 34 34 100 1975 15 38 30 100 1976 14 41 31 100 1977 16 45 27 100 1978 14 47 28 100 1979 8 36 38 100 1980 9 31 36 100 1981 11 31 33 100 1982 15 33 29 100 1. Agricultural banks are banks with total assets under $500 million 2. Net income after taxes as a percentage of the average of equity at at which farm loans accounted for 25 percent or more of total loans on the beginning and end of the year. December 31 of the year specified. *Less than 0.5 percent. tant because adding to retained earnings is the achieve such profitability during relative adversimajor way in which rural banks expand their ty attests to the market strength and financial capital position and thus maintain or improve resilience of these banks. their ability to serve growing communities and businesses. The average return to equity at agri- Capital Ratios cultural banks rose sharply with farm prosperity in 1973 and remained at a relatively high level A considerable portion of the profits of agriculthrough 1982 (chart 8). In addition to reflecting tural banks—about two-thirds in 1982—are annufavorable agricultural income, the cyclical pat- ally added to bank capital rather than paid out as tern traced by profits at agricultural banks indi- dividends to stockholders. From 1974 through cates that these banks, on balance, benefited 1982, equity grew faster than deposits and assets during periods when interest rates were relative- on average, and thus the average capital ratio ly high in national money markets. Their depos- rose (chart 8). By the end of 1982, capital and its rose steadily even during such periods—for surplus at these banks averaged 8.9 percent of example, approximately 10 percent in each year total assets, up from the cyclical low of 7.4 from 1978 to 1982—and the influx of funds evi- percent recorded after the large inflow of farmdently was employed profitably. Average return ers' deposits in 1972 and 1973. to equity reached 16 percent in 1974 and again in The growth of capital at individual banks is of 1979-80. By 1982, primarily because of increased particular importance because it determines how provision for greater loan losses, return to equity much a bank can increase, over time, the amount had declined to 14 percent. it can legally and prudently lend to each borrow- Even in the face of heavier loan losses, rela- er. During the five years ending in 1982, the tively few agricultural banks were operating at a value per farm of assets other than real estate loss. At such banks, however, extraordinarily rose 60 percent, and average outstanding farm high loan losses were most often the cause of the production loans rose 68 percent. Capital at rural operating loss. In 1982, negative earnings were banks kept pace: at banks classified as agriculposted by 3 percent of agricultural banks (table tural banks in 1982, capital and surplus expanded 6). At these banks, the provision made for loan 75 percent over the same period. Thus, on averlosses averaged 4.2 percent of outstanding loan age, increases in the size of loans that agriculturvolume. But even during that year of farm and al banks can make have approximately matched business recession, 77 percent of agricultural increases in the size of loans demanded by banks achieved a return of 10 percent or more on farmers. equity. Although down from 91 percent in 1979, Recent changes in bank legislation have furthis high a proportion of institutions able to ther enhanced the lending capability of rural Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Financial Perspective on Agriculture 13 banks. The upper limit on the amount that a periods of relative monetary restraint. Thus the national bank can lend to one borrower was ability of rural banks to respond to seasonal, raised from 10 to 15 percent of capital and cyclical, or unusual changes in local loan demand surplus (a special higher limit of 25 percent has been improved. continues to apply if the loans are secured by As in the past, the experience of many rural livestock). Of more general importance, the in- banks will be related to that of agriculture. The crease in federal insurance on individual deposits banks appear well-positioned to cope with nearto $100,000 had the incidental effect of making term agricultural developments. Their strong the negotiable certificates of deposit of small capital and profit positions will help them weathbanks salable to national investors, either direct- er some further deterioration in the financial ly or through intermediaries that ensure that each situation of their more heavily indebted farm investor holds no more than one certificate of borrowers. At the same time, their liquidity has each bank. Furthermore, because most new local been renewed during four years of steady deposit deposits now bear interest related to money growth and slower loan demand. Agricultural market rates, rural banks no longer find that banks now have ample capital and liquidity to funds raised in money markets are more costly respond vigorously to increased loan demand than local deposits, as they did during earlier during this year's upswing in farm production. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Staff Studies The staffs of the Board of Governors of the indicate concurrence by the Board of Governors, Federal Reserve System and of the Federal by the Federal Reserve Banks, or by the mem- Reserve Banks undertake studies that cover a bers of their staffs. wide range of economic and financial subjects. Single copies of the full text of each of the From time to time the results of studies that are studies or papers summarized in the BULLETIN of general interest to the professions and to are available without charge. The list of Federal others are summarized in the FEDERAL RESERVE Reserve Board publications at the back of each BULLETIN. BULLETIN includes a separate section entitled The analyses and conclusions set forth are "Staff Studies" that lists the studies that are those of the authors and do not necessarily currently available. STUDY SUMMARY THE EFFECTS OF U.S. FISCAL POLICY ON THE U.S. ECONOMY Darrel Cohen and Peter B. Clark—Staff, Board of Governors Prepared as a staff study in late 1983. Considerable public and professional interest has the assumptions that the growth rate of money is focused on the effects of very large, continuing fixed, that exchange rates are essentially market federal budget deficits in the United States. This determined, and that expectations are either statinterest, which is worldwide, reflects concern ic or adaptive. The effects of an enlargement in about the extent to which a large federal deficit— the federal deficit generated by a cut in personal especially if it persists as the U.S. economy income taxes are explored under conditions of approaches full employment—raises interest full employment and of less than full use of rates and crowds out expenditures in sectors of resources, and under different assumptions the economy like business fixed investment that about the interest elasticity of the demand for are sensitive to interest rates. Because the Unit- money. The theoretical discussion indicates that ed States looms large in the world economy, in general a personal tax cut will raise interest U.S. federal budget deficits may have a notice- rates and, at least initially, cause the exchange able impact on other countries through their value of the dollar to appreciate. With unemeffects on interest rates on dollar-denominated ployed resources, output will increase somefinancial instruments, the international exchange what, but the increase in consumption is at least value of the dollar, and U.S. international trans- partially offset by negative effects on interestactions. sensitive sectors of the domestic economy and This staff study analyzes this topic by examin- on the traded-goods sector as an appreciation of ing in detail the short- and intermediate-run the dollar encourages imports and discourages effects of a permanent, bond-financed reduction exports. in U.S. personal income taxes on interest rates, These theoretical conclusions are by and large output, prices, exchange rates, and the current confirmed by simulations, using the Federal Reaccount. Underlying the theoretical analysis are serve Board's MPS quarterly econometric model Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 and its Multicountry Model, of the effects of the current account and the adverse effect of higher 10 percent reduction in tax rates on personal interest rates on residential investment, the level income that became effective as part of the of real GNP returns to the path it would have Economic Recovery and Tax Act in July 1982. traced without the reduction in personal taxes. These model results indicate that a tax cut will Thus these model results suggest that even in the raise interest rates and real gross national prod- presence of unemployed resources, a personal uct. However, the positive impact on GNP is tax cut that is not accompanied by a change in short-lived. Because of accelerator effects, busi- monetary policy will have only a short-run posiness fixed investment initially increases despite tive effect on real output: the rise in consumption the rise in interest rates. Yet after two or three spending will eventually crowd out an equivalent years, the net effect on business fixed investment amount of interest-sensitive expenditures beis negative, and because of a deterioration in the cause of higher interest rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Industrial Production Released for publication January 13 industrial output was about 23/» percent higher than in the third quarter of 1983, compared with Industrial production increased an estimated 0.5 an average quarterly advance of about 4 percent percent in December. Significant increases in over the preceding three quarters. Industrial output occurred in durable consumer goods, output for the year 1983 is estimated to be 6V2 business and defense equipment, and energy percent higher than in 1982. materials, while most of the remaining major In market groupings, production of durable market groupings showed little change in produc- consumer goods rose almost 2 percent in Decemtion in December. For the fourth quarter, total ber, as auto assemblies increased to an annual 1967 = 100 1967 = 100 170 170 ~ TOTAL INDEX - Materials output ^^ \ 150 7% 150 130 Products output 130 1 1 1 1 1 1 FINAL PRODUCTS 190 T_ MATERIALS Nondurable - 190 170 f - 170 Business equipment \ ' s-^' / / 150 150 f \ /Durable^ / - J / 130 130 Energy \j — 110 - — 110 90 1 1 1 1 1 I 90 190 190 CONSUMER GOODS INTERMEDIATE PRODUCTS 170 170 ' p MnnHiir^Klo Business supplies r y \ 150 V \ 150 \ /v ^ 7 Durable v 130 Construction supplies 130 110 110 1969-70=100 Annual rate, millions of units 180 18 140 1977 1979 1981 1983 1977 1979 1981 1983 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: December. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

17 1967 = 100 Percentage change from preceding month PPeerrcceennttaaggee cchhaannggee,, Grouping 1983 1983 DDeecc.. 11998822 ttoo DDeecc.. 1983 Nov. Dec. Aug. Sept. Oct. Nov. Dec. Major market groupings Total industrial production 156.1 156.9 1.4 1.3 .8 .7 .5 16.1 Products, total 156.9 158.0 1.5 1.1 .6 .7 .7 12.9 Final products 154.2 155.4 1.1 .9 .5 .9 .8 11.4 Consumer goods 157.8 158.7 1.0 .6 -.1 .4 .6 11.8 Durable 156.7 159.7 .9 2.1 -.3 -.3 1.9 26.8 Nondurable 158.2 158.3 1.0 .1 -.1 .7 .1 6.7 Business equipment 164.4 165.8 2.2 1.3 1.8 1.8 .9 12.0 Defense and space 123.9 125.7 -.2 1.3 .9 .8 1.5 8.5 Intermediate products 167.2 167.6 2.6 2.0 .7 .4 .2 18.4 Construction supplies 152.7 152.7 2.2 1.6 .6 .3 .0 24.1 Materials 154.9 155.3 1.3 1.7 1.1 .6 .3 21.5 Major industry groupings Manufacturing 157.2 157.8 1.5 1.5 .8 .5 .4 17.3 Durable 144.0 145.0 1.5 2.0 1.0 .7 .7 20.9 Nondurable 176.3 176.3 1.3 1.0 .7 .3 .0 13.3 Mining 120.9 123.4 1.0 .9 1.3 1.9 2.1 4.2 Utilities 178.8 183.4 1.9 .0 -1.3 1.1 2.6 11.7 NOTE. Indexes are seasonally adjusted. rate of 8.0 million units from the 7.5 million rate month. Production of durable materials was unin November and home goods output advanced changed, as the output of parts for both consumafter having declined in the preceding month. er durables and equipment rose, but basic metals The December rate for auto assemblies was the declined again. highest since July 1979. A further increase is In industry groupings, manufacturing output currently scheduled for January. Production of rose 0.4 percent following gains of 0.5 percent nondurable consumer goods was about un- and 0.8 percent in November and October rechanged in December. Output of business equip- spectively. Durable goods industries increased ment continued to rise rapidly, with a sizable production 0.7 percent in December, with the gain occurring in building and mining equipment. most notable gains in transportation equipment Production of construction supplies was un- and electrical machinery; output of nondurables changed and was less than 1 percent above its was unchanged. Mining production increased September level. The rate of increase in output sharply, with oil and gas well drilling a continuof materials decelerated further in December to ing area of strength. Utilities output rose 2.6 0.3 percent; most of this gain was attributable to percent, as use of residential electricity ina surge in generation of electricity associated creased sharply. with the severe weather in the latter half of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

19 Announcements APPLICATIONS BY However, the Board has, in the past, taken the posi- BANK HOLDING COMPANIES tion that the processing of an application may be suspended where the issues raised are the subject of TO ACQUIRE STATE CHARTERED BANKS pending litigation, legislation or rulemaking. Accordingly, the Board staff has informed the Applicants of The Federal Reserve Board issued the following the Board's views on these matters and the Applicants statement on January 6, 1984, regarding the have requested the Board to suspend the processing of applications by Citicorp, First Interstate Ban- their applications. Similarly, because of the pending corp, and BankAmerica Corporation to acquire legislation, the Board decided to defer further action on the rulemaking now in progress on section 225.4(e) state-chartered banks in South Dakota. of Regulation Y, which permits subsidiaries of state banks that are owned by bank holding companies to At meetings on December 22, 1983, and January 4, acquire or form an operating subsidiary to engage in 1984, the Board considered certain legal and policy any activity that the bank itself may engage in directly. issues arising from the applications by Citicorp, New York, New York, First Interstate Bancorp, Los Angeles, California, and BankAmerica Corporation, San Francisco, California, to acquire existing or de novo REGULATION Y: REVISION state-chartered banks located in South Dakota. These applications are designed to take advantage of the The Federal Reserve Board has made public a recently enacted provisions of South Dakota law that permit out-of-state bank holding companies to acquire complete revision of its Regulation Y (Bank banks in that State to engage in insurance activities of Holding Companies and Change in Bank Conall kinds outside of South Dakota, while limiting the trol), including liberalization of procedures that conduct of those activities within that State. should reduce by a third the time now required The Board noted that these applications involve for handling applications. significiant legal questions concerning the applicability The Board's revision added five activities to of the Bank Holding Company Act to state-chartered banks and/or their subsidiaries that are owned by bank the list of bank-related activities permissible for holding companies, as well as with respect to the bank holding companies, and approved incorpocompatability of the proposed insurance activities with ration into the regulation of certain standing the provisions of Title VI of the Garn-St Germain Board interpretations, including interpretations Depository Institutions Act of 1982, which restricts of definitions of the terms "demand deposit" and the scope of insurance activities for bank holding companies. "commercial loan" in the Bank Holding Compa- The Board also noted that specific legislation, which ny Act's definition of "bank." raises the major policy issue of the extent to which The Board acted after review of some 800 bank holding companies may engage in insurance letters of comment received following publicaunderwriting and brokerage, is now pending before the tion in May of a proposed complete overhaul of Congress and that hearings on this legislation are likely to resume early in 1984. The Board has supported Regulation Y. The overhaul is part of the Board's legislation submitted by the Administration to autho- Regulatory Improvement Project for reviewing rize insurance underwriting and brokerage for bank and modernizing all of its regulations. holding companies with appropriate safeguards, and The Board also approved seeking public comlooks forward to Congressional action on this legislation early in the current session of Congress. ment on the possible addition of a number of Taking account of the important and fundamental activities to the list of activities permissible for legal and policy issues raised by these applications, bank holding companies, as suggested by comand their pending consideration before the Congress, menters on the May proposal, including the the Board reached the tentative judgment that it could scope of permissible insurance activities for bank not approve the proposed bank acquisitions in view of holding companies under Title VI of the Garn-St present law and expressions of Congressional intent, subject to any further consideration by the Congress. Germain Depository Institutions Act of 1982. (A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1984 separate Federal Register notice containing regulation to recent actions of the Depository these proposed new activities will be published Institutions Deregulation Committee (DIDC). in the near future.) The modifications to Regulation Q, effective January 1, 1984, deal with actions of the DIDC at its June 30 and September 30 meetings, concern- REGULATION O: AMENDMENTS ing the removal (effective December 1, 1983) of the $2,500 minimum denomination on money The Federal Reserve Board has approved market deposit accounts, Super NOW (negotiachanges in its Regulation O (Loans to Executive ble order of withdrawal) accounts, and 7- to 31- Officers, Directors, and Principal Shareholders day accounts for individual retirement account of Member Banks) to conform it to the Garn-St and Keogh depositors. The revision also phases Germain Depository Institutions Act of 1982. out these minimums for other depositors effec- The Board acted after a review of comment tive January 1, 1985, and January 1, 1986. The received on a proposal made in October. modifications remove the differential between The act deleted certain reporting and disclo- the interest rate ceiling on passbook savings sure requirements with respect to loans to execu- accounts and 7- to 31-day deposits under $2,500 tive officers, principal shareholders, and their at both thrift institutions and commercial banks, related interests, and instead gave federal bank effective January 1, 1984, making the ceiling for regulators authority to issue rules concerning all such accounts 5V2 percent. reporting and disclosure of such loans by a The Board's official notice of its action, giving federally insured bank or by any of an insured details of these changes, may be obtained from bank's correspondent banks. the Federal Reserve Banks. In June, the Federal Financial Institutions Examination Council, on which the three federal bank regulators are represented, made proposals REGULATION X: REVISION designed to implement the portions of the Garn- St Germain Act dealing with insider loans, to be The Federal Reserve Board has adopted a proeffective December 31, 1983. The Council rec- posal that completely revises Regulation X ommended that the federal bank regulators (Rules Governing Borrowers Who Obtain Secuamend their regulations accordingly. rities Credit). The new rule becomes effective The Board's revisions of Regulation O sub- January 23, 1984. stantially implement the Garn-St Germain Act The revision of Regulation X is part of the respecting insider lending as recommended by Board's Regulatory Improvement Project in the Examination Council. Aside from deletion of which the Board is reviewing and revising all its a reporting form and certain recordkeeping re- regulations to update them, simplify their lanquirements, the regulation, as revised, would guage, eliminate obsolete or unneeded language require member banks to disclose, upon request, or provisions, and lighten the burden of complithe name of each executive officer and principal ance. The Board has previously, under this proshareholder, who—together with their related ject, completely revised Regulations G, T, and interests—had loans from the bank or its corre- U, which apply to lenders (as distinguished from spondent banks equal to a minimum of 5 percent borrowers under Regulation X) that give credit of the member bank's capital and surplus, or for purchasing or carrying securities. $500,000, whichever is less, except that such The Board adopted the revised regulation after loans not exceeding $25,000 need not be dis- a review of comment received on proposed reviclosed. sions issued in October. The major substantive changes to Regulation X are the exclusion of purely domestic borrowings, which are already REGULATION Q: AMENDMENTS regulated by margin rules applicable to lenders, and an increase in the exemption for margin The Federal Reserve Board has revised its Regu- credit obtained by U.S. citizens residing abroad lation Q (Interest on Deposits) to conform the from $5,000 to $100,000. The final rule reflects a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 21 modification from the proposed rule in that bor- Monday, both seasonally adjusted and not searowers who willfully cause credit to be extended sonally adjusted, will be extended back to 1975. in contravention of the margin rules will not be excluded from the scope of the regulation. Factors Affecting Reserves of Depository Institutions and Condition Statement of CHANGES IN STATISTICAL RELEASES ON F.R. Banks—H.4.1 MONEY STOCK AND RESERVES DATA The H.4.1 will be published each Thursday at The Federal Reserve Board announced on Janu- 4:15 p.m.—a day earlier than now—and will ary 13, 1984, a series of changes in the content continue to show weekly average and Wednesand timing of its statistical releases on money day data for reserve balances at the Federal stock and reserves data that will occur with the Reserve and factors affecting reserves during the forthcoming conversion to contemporaneous re- week ending the preceeding Wednesday, includserve requirements (CRR). ing borrowing at the discount window. It also Under contemporaneous reserves, the reserve will continue to show the Wednesday condition computation and maintenance periods will statement for the Federal Reserve Banks, both change from one to two weeks. Reserves will be consolidated and for each District separately. maintained beginning two days after the opening However, all reserves items that depend on a of the computation period for transaction ac- calculation of required reserves—such as excess counts. At present, there is a two-week lag from reserves and total reserves—will no longer apthe beginning of the one-week computation peri- pear on the H.4.1; they will be shown on the H.3 od to the beginning of the one-week reserve on a two-week average basis. The last publicamaintenance period. tion of the current H.4.1 will be on February 3, The initial computation period for required and the first publication on the new basis is reserves on transaction accounts will begin Tues- scheduled for February 9. day, January 31, and end Monday, February 13. The initial reserve maintenance period will begin Thursday, February 2, and end Wednesday, Aggregate Reserves of Depository February 15. Money stock and reserves data will Institutions and Monetary Base—H.3 continue to be issued on a weekly basis with the following changes. The H.3 will be published each Thursday at 4:15 p.m., rather than on Monday afternoon as it is currently. All reserves items that depend on the Money Stock and Liquid Assets—H.6 calculation of required reserves—including total, nonborrowed, and excess reserves and the mon- The H.6 will be published each Thursday at 4:15 etary base—will be shown on the basis of averp.m., one day earlier than now. The release will ages of two weeks ending every second Wednesbe essentially unchanged in content. Ml and day, corresponding to the reserve maintenance certain other deposit data will continue to be period under CRR. Preliminary estimates of published weekly, but the figures will pertain to a these two-week averages will be published for week ending on a Monday, consistent with the the first time on alternate Thursdays, with a lag CRR reporting cycle. The last publication of the of one day from the Wednesday end of the twocurrent H.6 will be on February 10, and the week reserve maintenance period. Data reviinitial publication of the new H.6 is scheduled for sions will be published on intervening Thurs- February 16. It is anticipated that the February days. The last publication of the old H.3 will be 16 release also will contain revisions associated on February 6 and the first publication of the new with the annual benchmark and seasonal factor H.3 is scheduled for February 16. Final historical review. Historical data reflecting all these data for the reserves series on the old basis, changes will be available upon request as soon including any revisions to most recent data, will thereafter as possible; data for weeks ending on be made available upon request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1984 As experience is gained about the magnitude tion of the International Lending Supervision of revisions to the published preliminary esti- Act of 1983 that requires banking organizations mates of these two-week reserves series, consid- to maintain special reserves against certain foreration will be given to whether that publication eign loans or other foreign assets. The Board schedule should be retained or perhaps delayed a requested comment by January 11, 1984, and week. Depending on this experience, consider- intends to issue final regulations by January 31, ation may also be given, on the other hand, to the 1984. feasibility of publishing estimates of weekly reserves series. SYSTEM MEMBERSHIP: ADMISSION OF STATE BANKS Weekly Summary of Reserves and Interest Rates—H.9 The following banks were admitted to membership in the Federal Reserve System during the The H.9—now published each Friday at 4:15 period December 10, 1983, through January 10, p.m.—will be discontinued because each re- 1984: serves item will be published on Thursdays in either the H.4.1 or the H.3, and interest rate data Alabama will continue to be published the following Mon- Pelham .... First American Bank of Pelham day in the release on Selected Interest Rates California (H.15). The last H.9 will be published on Febru- Fullerton Pioneer Bank ary 3. Santee Cuyamaca Bank In light of the substantial changes to data Florida reporting and reserve computation and mainte- Palm City .. First American Bank of Martin nance systems occasioned by CRR, transitional County delays in meeting publication schedules for mon- Missouri ey stock and reserves data may occur initially, Girardeau First Exchange Bank of and data revisions for a time could be larger than Cape Girardeau usual. Virginia Fredericksburg Rappahannock Bank Grafton First Virginia Bank- PROPOSED ACTION Commonwealth The Federal Reserve Board has requested public comment on rules proposed to implement a sec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

23 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON NOVEMBER 14-15, 1983 The nominal value of retail sales, after changing little on balance during the summer months, 1. Domestic Policy Directive rose about VA percent in both September and October. Outlays at apparel stores and furniture The information reviewed at this meeting sug- and appliance outlets rose substantially in Octogested that real GNP was growing at a relatively ber, and sales at automotive outlets increased rapid rate in the current quarter, although the markedly in both months. Sales of new domestic pace of expansion appeared to have moderated automobiles picked up to an average annual rate from the annual rates of about 93/4 percent and of 7 million units in the two months, and sales of nearly 8 percent reported by the Commerce imported cars surged in October, apparently in Department for the second and third quarters response to the increased availability of popular respectively. Renewed strength in personal con- Japanese models. Consumers remained optimissumption expenditures and a substantial further tic about the near-term outlook, according to increase in inventory accumulation were expect- recent surveys of consumer confidence. Moreed to contribute to the continued expansion in over, recent data indicated marked gains in coneconomic activity. Meanwhile, price and wage sumers' real disposable incomes, reflecting subincreases generally have remained moderate, al- stantial increases in nominal personal income though there has been some pickup in recent augmented by the midyear tax cut and a continmonths in average wage costs and in nonfood ued moderate rate of increase in the average consumer prices. level of prices. The index of industrial production, which had Following a surge in August, private housing risen 1.3 percent in both August and September, starts fell to an annual rate of 1.65 million units in increased 0.8 percent further in October. Output September, close to their average in the second of business equipment rose sharply, while pro- quarter. Newly issued permits for residential duction of consumer durable goods and con- construction also fell in September, marking the struction supplies edged up slightly further, fol- second consecutive monthly decline. Sales of lowing very large increases in the second and existing homes remained at about the reduced third quarters. By October the index had risen July-August pace, while sales of new homes rose about 143A percent from its trough in November after three months of decline. 1982 to a level slightly above the previous peak in Business spending for capital goods has re- July 1981. mained strong. Outlays for producers' durable Nonfarm payroll employment, adjusted for equipment, which had increased at an annual strike activity, rose about 330,000 in October, rate of about 20 percent in real terms in the about the same as the average monthly increase second quarter, rose at a rate of nearly 16 in the preceding five months. Employment gains percent in the third quarter. Recent data on new were particularly marked in manufacturing and orders and shipments indicated further strength service industries, and employment in retail in the demand for business equipment. Investtrade and construction also continued to ment in nonresidential structures rose at an anstrengthen. The civilian unemployment rate fell nual rate of about 12 percent in the third quarter, 0.5 percentage point to 8.8 percent, two percent- after declines earlier in the year. age points below its peak in December 1982. The producer price index for finished goods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1984 rose 0.3 percent in October, about the same as in text of more rapid growth in the aggregates. The other recent months. Most of the October in- Committee anticipated that Ml growth at an crease was attributable to higher prices for con- annual rate of around 7 percent from September sumer foods; prices of energy-related items and to December would be consistent with its fourthof finished consumer goods other than foods quarter objectives for the broader aggregates, were little changed. Thus far in 1983 the index and that expansion in total nonfinancial debt had increased at an annual rate of less than 1 would remain within the range of 8Vz to IV/2 percent. The consumer price index rose 0.5 percent established for the year. The intermeetpercent in September, following advances of 0.4 ing range for the federal funds rate was retained percent in the preceding two months. Consumer at 6 to 10 percent. prices had changed little early in the year and In October, both M2 and M3 grew at annual over the first nine months of 1983 had increased rates close to the 8V2 percent pace sought by the at an annual rate of about 33/4 percent. The index Committee for the September-to-December periof average hourly earnings rose somewhat more od: growth in M2, after slowing substantially in September and October than in previous over the summer months, accelerated to an estimonths but the index has risen more slowly this mated annual rate of about 9 percent, while year than in 1982. growth in M3 was at an estimated annual rate of In foreign exchange markets the trade-weight- about 8V4 percent. On the other hand, expansion ed value of the dollar against major foreign in Ml, at an annual rate of about IV2 percent, currencies had risen a little more than 1 percent remained low. Through October, M2 was at a since early October. The eruption of political and level in the lower portion of the Committee's military conflicts in a number of locations around range for 1983 and M3 was in the upper portion the world was a factor in the dollar's strength, as of its range. Ml was in the lower portion of the some investors viewed the dollar as a "safe Committee's monitoring range for the second haven" during the period of heightened interna- half of the year. tional tensions. The rise was also associated in Growth in the debt of domestic nonfinancial part with some widening of the differential be- sectors was estimated to have slowed somewhat tween U.S. and key foreign interest rates. The in October, but it remained well within the U.S. foreign trade deficit increased considerably Committee's monitoring range for the year. in the third quarter as imports, especially of Growth in funds raised by private sectors apparpetroleum, rose faster than exports. ently moderated, while funds raised by the feder- At its meeting on October 4, 1983, the Com- al government continued relatively large. Expanmittee had decided that in the short run, open sion in credit at U.S. commercial banks market operations should be directed toward increased at an estimated annual rate of about 10 maintaining the slightly reduced reserve restraint percent in October, considerably faster than in that had been sought in the weeks just prior to September and close to the average pace for the that meeting. This policy was expected to be year to date. The acceleration in October reflectassociated with growth of both M2 and M3 at an ed primarily a substantial increase in banks' annual rate of around 8'/> percent for the period acquisitions of U.S. Treasury securities but also from September to December. The members had strong growth in consumer loans. Borrowing by agreed that the need for greater or lesser restraint businesses remained moderate, as funds generaton reserve conditions should be evaluated ed internally covered the bulk of financing needs; against the background of developments relating such borrowing continued to be concentrated in to the strength of the economic recovery, the the short-term area. outlook for inflation, and conditions in domestic Total reserves contracted somewhat in Octoand international financial markets. Depending ber, but growth of nonborrowed reserves (inon such developments, lesser restraint would be cluding extended credit at the discount window) acceptable in the event of a significant shortfall picked up. Adjustment plus seasonal borrowing in the growth of the aggregates, while somewhat averaged $630 million during the five statement greater restraint would be acceptable in the con- weeks ending November 9, somewhat below the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 25 level that had prevailed during most weeks in the business fixed investment created by the moprevious intermeeting interval. mentum of the expansion. In addition, it was Interest rates generally fluctuated in a narrow pointed out that a highly stimulative fiscal policy range over the intermeeting period. Federal remained in prospect for 1984. Thus, while the funds traded mainly around 93/s percent, down expansionary impact of housing and inventory from earlier weeks. Other short-term rates were accumulation could be expected to wane during up marginally on balance over the intermeeting the second year of the recovery, vigorous growth period. Most long-term rates rose somewhat, in fixed investment expenditures in conjunction apparently in response to indications of contin- with the prospective federal deficit might well ued strength in economic activity and to uncer- sustain relatively rapid expansion in overall ecotainties about the prospective pattern of Trea- nomic activity during the year ahead. It was also sury financing as passage of legislation to raise suggested that, at least for the near term, conthe debt ceiling was delayed. In contrast, aver- sumer spending and inventory accumulation age rates on new commitments for fixed-rate might provide more stimulus to the economy conventional home mortgage loans declined than was generally anticipated. about 20 basis points and the ceiling rate on Other members placed more emphasis on regular FHA/VA mortgage loans was reduced Vi some elements of potential weakness in the ecopercentage point to 12V2 percent. nomic outlook. It was pointed out that there was The staff projections presented at this meeting as yet no firm evidence that business fixed indicated that growth in real GNP would slow investment would prove to be exceptionally from the rapid rate of recent quarters to a more strong during 1984. Indeed, such investment moderate pace during 1984. A key element in the might continue to be held down by the persisexpected slowdown was a projection of lessened tence of weak demand for the output of some stimulus from inventory rebuilding and housing traditional producers of capital equipment, and, activity; growth in consumer spending was also more generally, by relatively high interest rates projected to slow somewhat. On the other hand, in the context of massive Treasury debt financbusiness fixed investment was expected to accel- ings. International developments might also conerate and the foreign sector was expected to be tinue to exert a retarding impact on the domestic less of a damping factor over the course of 1984 economy, especially if the dollar failed to deprethan over 1983. A decline in the unemployment ciate as many observers expected and if the rate was anticipated over the projection period, economies of foreign countries remained relaand upward pressures on prices were expected to tively sluggish, thereby limiting export markets remain generally moderate. for U.S. products while encouraging foreign In the Committee's discussion of the economic firms to compete aggressively in U.S. markets. situation and outlook, members commented that Reference was also made to the possibility that the economic expansion had remained stronger problems related to the international debt situathan generally anticipated. Reports from around tion could have adverse consequences for U.S. the country suggested increasingly widespread financial markets and economic activity. optimism about business conditions and a high With regard to the prospects for prices, several degree of consumer confidence. While all the members questioned whether further progress members expected the rate of economic growth could be made in containing inflationary presto moderate over the year ahead, there were sures if the rate of economic expansion did not some differences of view with regard to the slow to a more moderate pace over the year timing and likely extent of the slowdown. Some ahead. One member observed that by late 1984, members anticipated that the slowdown might be capacity utilization rates could reach levels that appreciably less than projected by the staff, with would tend to generate inflationary cost presunfavorable implications for inflationary pres- sures even if unemployment were still high relasures and the ultimate sustainability of the ex- tive to earlier expansion periods. On the other pansion. In support of this view, reference was hand, some members felt that there was little made to the favorable conditions for a surge in current evidence that price and wage pressures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1984 or inflationary expectations were worsening. transaction needs related to strengthened busi- One member also noted that the economy was ness activity could continue to be met for a time, still operating well below capacity and that fur- at least in part, out of balances that had been ther significant improvements in productivity, built up earlier, including NOW accounts. along with competitive pressures from world One member indicated a preference for giving markets, were likely to restrain inflation during increased weight to Ml in the formulation of 1984. monetary policy and commented that its slow In the Committee's discussion of policy for the growth, should it persist, could threaten the period immediately ahead, all of the members sustainability of the economic expansion. Other found acceptable a policy directed toward main- members commented that the deceleration of Ml taining the existing degree of reserve restraint. In growth in recent months had to be evaluated the view of some, however, an argument could against the background of unusually rapid expanbe made in favor of a small, precautionary step in sion in the latter part of 1982 and the first half of the direction of firming in light of the continuing 1983. It was also pointed out that the broader strength of the economic expansion and the monetary aggregates emphasized by the Comassociated danger of a resurgence of inflationary mittee had been growing in line with the Commitpressures during the year ahead. While acknowl- tee's objectives. edging the risks of inflation in a rapidly expand- All the members indicated that they could ing economy combined with large budget deficits support a directive that called for maintaining the and the relatively rapid monetary growth earlier current degree of restraint on reserve positions in the year, most members saw sufficient uncer- over the near term, but they also agreed that the tainties in the outlook to counsel against any directive should continue to allow for some leechange in reserve pressures at this time. Some way to adjust the degree of reserve pressure members were also concerned that under the during the intermeeting period. In this connecprevailing circumstances even a modest increase tion, a number of members were in favor of being in restraint on reserves might have a dispropor- particularly sensitive to evidence of continued tionate impact on domestic and international unexpected strength in the economy and the financial markets. The result could be an in- related potential for greater price and wage prescrease in domestic interest rates large enough to sures, should growth in the monetary aggregates have damaging consequences for housing and appear to be exceeding expectations. other interest-sensitive sectors of the economy At the conclusion of the discussion the Comand to intensify greatly the pressures on coun- mittee decided that no change should be made at tries with severe external debt problems. this time in the degree of restraint on reserve According to a staff analysis, a policy of main- positions. The members anticipated that such a taining the present degree of restraint on reserve policy would continue to be associated with conditions was likely to be associated with growth of both M2 and M3 at an annual rate of growth in M2 and M3 at rates that were consis- around 8V2 percent for the period from Septemtent with the objectives that the Committee had ber to December. The members also agreed that set previously for the fourth quarter and for the the need for greater or lesser restraint on reserve year as a whole. Such a policy might also result conditions should be evaluated against the backin an acceleration in the growth of Ml over the ground of developments relating to the strength last two months of the year, primarily in re- of the economic recovery, the outlook for inflasponse to increasing needs for transaction bal- tion, and conditions in domestic and internationances in a rapidly expanding economy. Given the al financial markets. Depending upon such devellimited growth of Ml in October, however, its opments over the weeks ahead, greater restraint expansion for the entire fourth quarter was likely would be acceptable in the event of more rapid to be below the growth rate of around 7 percent growth in the broader monetary aggregates, anticipated earlier. The staff also indicated that while lesser restraint would be acceptable in the the demand for transaction balances remained context of a significant shortfall in such growth. subject to a great deal of uncertainty, and that The Committee anticipated that, given the rela- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 27 tively slow growth of Ml in October, its expan- sustainable basis, and contribute to a sustainable patsion at an annual rate of around 5 to 6 percent tern of international transactions. At its meeting in July the Committee reconsidered the growth ranges from September to December would be consisfor monetary and credit aggregates established earlier tent with the fourth-quarter objectives for the for 1983 in furtherance of these objectives and set broader aggregates, and that expansion in total tentative ranges for 1984. The Committee recognized domestic nonfinancial debt would remain within that the relationships between such ranges and ultithe range of 8V2 to IIV2 percent established for mate economic goals have become less predictable; that the impact of new deposit accounts on growth of the year. It was agreed that the intermeeting the monetary aggregates cannot be determined with a range for the federal funds rate, which provides a high degree of confidence; and that the availability of mechanism for initiating consultation of the interest on large portions of transaction accounts may Committee, would remain at 6 to 10 percent. be reflected in some changes in the historical trends in At the conclusion of the discussion, the Com- velocity. Against this background, the Committee at its July mittee issued the following domestic policy dimeeting reaffirmed the following growth ranges for the rective to the Federal Reserve Bank of New broader aggregates: for the period from February- York: March of 1983 to the fourth quarter of 1983, 7 to 10 percent at an annual rate for M2; and for the period The information reviewed at this meeting suggests from the fourth quarter of 1982 to the fourth quarter of that real GNP is growing at a relatively rapid pace in 1983, 6V2 to 91/2 percent for M3. The Committee also the current quarter, although the rate of expansion agreed on tentative growth ranges for the period from appears to have moderated since the spring and sum- the fourth quarter of 1983 to the fourth quarter of 1984 mer. In October, industrial production increased ap- of 6V2 to 9Vi percent for M2 and 6 to 9 percent for M3. preciably, following large gains in previous months. The Committee considered that growth of Ml in a Nonfarm payroll employment rose substantially fur- range of 5 to 9 percent from the second quarter of 1983 ther, and the civilian unemployment rate declined V2 to the fourth quarter of 1983, and in a range of 4 to 8 percentage point to 8.8 percent. After changing little percent from the fourth quarter of 1983 to the fourth on balance during the summer months, retail sales quarter of 1984, would be consistent with the ranges strengthened in September and October. Housing for the broader aggregates. The associated range for starts and permits declined in September while home total domestic nonfinancial debt was reaffirmed at 8'/ 2 sales rose somewhat. Recent data on new orders and to IIV2 percent for 1983 and tentatively set at 8 to 11 shipments indicate further strength in the demand for percent for 1984. business equipment. Producer and consumer prices In implementing monetary policy, the Committee have continued to increase at about the same pace as agreed that substantial weight would continue to be in other recent months. The index of average hourly placed on the behavior of the broader monetary aggreearnings rose somewhat more in September and Octo- gates. The behavior of Ml and total domestic nonfiber than in previous months, but over the first ten nancial debt will be monitored, with the degree of months of the year the index has risen more slowly weight placed on Ml over time dependent on evidence than in 1982. that velocity characteristics are resuming more pre- The foreign exchange value of the dollar has risen dictable patterns. The Committee understood that since early October against a trade-weighted average policy implementation would involve continuing apof major foreign currencies. The U.S. foreign trade praisal of the relationships between the various meadeficit increased considerably in the third quarter, sures of money and credit and nominal GNP, including with imports, especially of petroleum, rising faster evaluation of conditions in domestic credit and foreign than exports. exchange markets. After slowing substantially over the summer The Committee seeks in the short run to maintain months, growth in M2 accelerated in October, while the existing degree of reserve restraint. The action is M3 continued to expand at a moderate rate. Through expected to be associated with growth of M2 and M3 October, M2 was at a level in the lower portion of the at annual rates of around 8V2 percent from September Committee's range for 1983 and M3 in the upper to December, consistent with the targets established portion of its range. Ml continued to grow at a sluggish for these aggregates for the year. Depending on evipace in October and was in the lower portion of the dence about the continuing strength of economic re- Committee's monitoring range for the second half of covery and other factors bearing on the business and the year. Longer-term market rates have risen some- inflation outlook, somewhat greater restraint would be what on balance since early October, and short-term acceptable should the aggregates expand more rapidly; rates generally have fluctuated in a narrow range. lesser restraint might be acceptable in the context of a The Federal Open Market Committee seeks to fos- significant shortfall in growth of the aggregates from ter monetary and financial conditions that will help to current expectations. Given the relatively slow growth reduce inflation further, promote growth in output on a in October, the Committee anticipates that Ml growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 1984 at an annual rate of around 5 to 6 percent from holdings of U.S. government and federal agency September to December will be consistent with its securities specified in paragraph 1(a) of the aufourth-quarter objectives for the broader aggregates, thorization for domestic open market operations, and that expansion in total domestic nonfinancial debt for the intermeeting period ending with the close would remain within the range established for the year. The Chairman may call for Committee consulta- of business on December 20, 1983. tion if it appears to the Manager for Domestic Operations that pursuit of the monetary objectives and Votes for this action: Messrs. Volcker, Solomon, related reserve paths during the period before the next Gramley, Guffey, Keehn, Martin, Morris, Partee, meeting is likely to be associated with a federal funds Rice, Roberts, Mrs. Teeters, and Mr. Wallich. rate persistently outside a range of 6 to 10 percent. Votes against this action: None. Votes for this action: Messrs. Volcker, Solomon, This action was taken on the recommendation Gramley, Guffey, Keehn, Martin, Morris, Partee, Rice, Roberts, Mrs. Teeters, and Mr. Wallich. of the Manager for Domestic Operations. The Votes against this action: None. Manager had advised that projections for the upcoming intermeeting period indicated a substantial need for additions to reserves relating to 2. Authorization for a seasonal increase in currency in circulation. Domestic Open Market Operations Accordingly, the need for net purchases of U.S. government and federal agency securities during At this meeting the Committee voted to increase the intermeeting interval was considered likely to from $4 billion to $5 billion the limit on changes exceed the standard $4 billion limit on intermeetbetween Committee meetings in System Account ing changes in holdings of such securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 Legal Developments AMENDMENT TO REGULATION C ment and Budget as of the first day of the calendar year for which the data are compiled. The Board is making technical amendments to Regulation C to implement changes in terminology related to the definition of metropolitan areas, recently adopted by the U.S. Office of Management and Budget. Regu- AMENDMENT TO REGULATION D lation C and the Home Mortgage Disclosure Act require certain depository institutions with offices in The Board is amending 12 CFR Part 204 (Regulation metropolitan areas to disclose data about their home D—Reserve Requirements of Depository Institutions) mortgage and home improvement loans each year. The to adjust (1) the amount of transaction accounts subchanges do not affect the manner in which loan data is ject to a reserve requirement ratio of three per cent, as disclosed. required by the Monetary Control Act of 1980 (Title I Effective January 1, 1984, the Board amends Regu- of Pub. L. 96-221; 12 U.S.C. § 461(b)(2)(C)) and (2) lation C as set forth below: the amount of reservable liabilities of each depository institution that is subject to a reserve requirement of Part 203—Home Mortgage Disclosure zero per cent, as required by the Garn-St Germain Depository Institutions Act of 1982 (Pub. L. 97-320; 1. New paragraph (h) is added to section 203.2 to read 12 U.S.C. § 461(b)(ll)(B)). Currently, the first $26.3 as follows: million of a depository institution's net transaction accounts are subject to a three per cent reserve ratio Section 203.2—Definitions and $2.1 million of reservable liabilities are exempt from reserve requirements. The first reserve maintenance period to which the amendment applies begins (h) Standard metropolitan statistical area or SMSA January 12, 1984. means a metropolitan statistical area (MSA) or pri- Effective January 12, 1984, the Board amends Regumary metropolitan statistical area (PMSA), as defined lation D by revising paragraph (a) of section 204.9 to by the U.S. Office of Management and Budget. read as follows: 2. Paragraph (a)(2) of section 203.3 is revised to read as Part 204—Reserve Requirements of Depository follows: Institutions Section 203.3—Exemptions Section 204.9—Reserve Requirement Ratios (a) Asset size and location *** (a)(1) Reserve percentages. The following reserve (2) If it has neither a home office nor a branch office ratios are prescribed for all depository institutions, in a standard metropolitan statistical area (SMSA). Edge and Agreement corporations, and United States branches and agencies of foreign banks: 3. Paragraph (d)(1) of section 203.4 is revised to read Category Reserve requirement as follows: Net transaction accounts Section 203.4—Compilation of loan data $0-$28.9 million 3% of amount over $28.9 million $867,000 plus 12% of amount over $28.9 million Nonpersonal time deposits (d) SMS As and census tracts. For purposes of geo- By original maturity (or notice period): graphic itemization. Less than 1 xh years 3% (1) A depository institution shall use the SMSA 1 Vi years or more 0% Eurocurrency liabilities 3% boundaries defined by the U.S. Office of Manage- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 1984 (2) Exemption from reserve requirements. Each 2. Subpart C of Regulation K (12 C.F.R. 211.31 depository institution, Edge or Agreement corpora- et seq.) is amended by revising section 211.34(a)(2) to tion, and U.S. branch or agency of a foreign bank is read as follows, and by adding a new paragraph subject to a zero per cent reserve requirement on an 211.34(c): amount of its transaction accounts subject to the low reserve tranche in paragraph (a)(1), nonpersonal time deposits, or Eurocurrency liabilities or any Section 211.34—Procedures for Filing and combination thereof not in excess of $2.2 million Processing Notices determined in accordance with section 204.3(a)(3) of this Part. ^ *** (2) Subsequent notice. An eligible investor shall give AMENDMENTS TO REGULATION K the Board 60 days' prior written notice of changes in the activities of an export trading company that is a The Board has amended 12 C.F.R. Part 211, Regula- subsidiary of the investor if the export trading tion K, to include travel agency services on the list of company expands its activities beyond those deactivities that the Board has found to be usual in scribed in the initial notice to include: connection with the transaction of banking or other (i) taking title to goods where the export trading financial operations abroad. Permitting U.S. banking company does not have a firm order for the sale of organizations to offer these services abroad should those goods; enhance their ability to compete in foreign markets. (ii) product research and design; These services may be offered only through a foreign (iii) product modification, or company located abroad and the company may not (iv) activities not specifically covered by the list of engage in offering travel services in the United States. activities contained in section 4(c)(14)(F)(ii) of the In addition the Board has amended Subpart C of BHC Act. Such an expansion of activities shall be Regulation K, its regulations governing investments regarded as a proposed investment under this by bank holding companies in export trading compa- subpart. nies, to clarify when a bank holding company must (b) *** provide a subsequent notice of investment to the (c) Time period for investment. An investment in an Board. The Board also proposes to make a technical export trading company that has not been disapproved amendment to these regulations regarding the time shall be made within one year from the date of the within which an investment must be made by the notice not to disapprove, unless the time period is investor in the export trading company. extended by the Board or by the appropriate Federal Effective December 20, 1983, the Board amends Reserve Bank. Regulation K as set forth below: Part 211—International Banking Operations AMENDMENTS TO REGULATION O 1. Section 211.5(d)(14) Subpart A of 12 C.F.R. Part 211 is amended by redesignating section 211.5(d)(14) as The Board of Governors of the Federal Reserve Syssection 211.5(d)(15) and adding a new section tem is amending 12 CFR Part 215, Regulation O, which 211.5(d)(14) to read as follows: governs loans by a member bank to insiders, to implement amendments to Titles VIII and IX of the Section 211.5—Investments in Other Financial Institutions Regulatory and Interest Rate Organizations Control Act that were included in Title IV of the Garn- St Germain Depository Institutions Act of 1982. The amendment replaces certain of the reporting and dis- (d) *** closure requirements previously required by FIRA (14) the operation of a travel agency provided that with the reporting and disclosure provisions recomthe travel agency is operated in connection with mended by the Federal Financial Institutions Examifinancial services offered abroad by the investor or nation Council. others; Effective December 31, 1983, the Board of Governors is revising 12 C.F.R. Part 215, Regulation O, as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 31 Part 215—Loans to Executive Officers, related interests of such person, equaled or Directors, and Principal Shareholders of exceeded 5 per cent of the member bank's Member Banks capital and unimpaired surplus or $500,000, whichever amount is less. No disclosure under 1. Section 215.10 is revised to read as follows: this paragraph is required if the aggregate amount of all extensions of credit outstanding at Section 215.10—Disclosure of Credit From such time from the member bank to the execu- Member Banks to Executive Officers and tive officer or principal shareholder of the mem- Principal Shareholders ber bank and to all related interests of such a person does not exceed $25,000. (a) Definitions. For the purposes of this section, the (ii) A member bank is not required to disclose following definitions apply: the specific amounts of individual extensions of (1) "Principal shareholder of a member bank" credit. means any person7 (other than an insured bank, or a (c) Maintaining records. Each member bank shall foreign bank as defined in 12 U.S.C. 3101(7)), that, maintain records of all requests for the information directly or indirectly, owns, controls, or has power described in paragraph (b) of this section and the to vote more than 10 per cent of any class of voting disposition of such requests. These records may be securities of the member bank. The term includes a disposed of after two years from the date of the person that controls a principal shareholder (e.g., a request. person that controls a bank holding company). Shares of a bank (including a foreign bank), bank 2. Section 215.23 is revised to read as follows: holding company, or other company owned or controlled by a member of an individual's immediate Section 215.23—Disclosure of Credit From family are presumed to be owned or controlled by Correspondent Banks to Executive Officers and the individual for the purposes of determining prin- Principal Shareholders cipal shareholder status. (2) "Related interest" means: (a) Public disclosure. (A) any company controlled by a person, or (i) Upon receipt of a written request from the public, (B) any political or campaign committee the funds a member bank shall make available the names of or services of which will benefit a person or that is each of its executive officers and each of its princicontrolled by a person. pal shareholders to whom, or to whose related For the purpose of this section and Subpart B, a interests, any correspondent bank of the member related interest does not include a bank or a bank had outstanding, at any time during the previforeign bank (as defined in 12 U.S.C. 3101(7)). ous calendar year, an extension of credit that, when (b) Public disclosure. aggregated with all other outstanding extensions of (i) Upon receipt of a written request from the credit at such time from all correspondent banks of public, a member bank shall make available the the member bank to such person and to all related names of each of its executive officers8 and interests of such person, equaled or exceeded 5 each of its principal shareholders to whom, or per cent of the member bank's capital and unimto whose related interests, the member bank paired surplus or $500,000, whichever amount is had outstanding as of the end of the latest less. No disclosure under this paragraph is required previous quarter of the year, an extension of if the aggregate amount of all extensions of credit credit that, when aggregated with all other outstanding from all correspondent banks of the outstanding extensions of credit at such time member bank to the executive officer or principal from the member bank to such person and to all shareholder of the member bank and to all related interests of such a person does not exceed $25,000 at any time during the previous calendar year. (ii) A member bank is not required to disclose the specific amounts of individual extensions of credit. (b) Maintaining records. Each member bank shall 7. The term "stockholder of record" appearing in 12 U.S.C. maintain records of all requests for the information 1972(2)(G) is synonymous with the term "person." 8. For purposes of this section and Subpart B, an executive officer described in paragraph (a) of this section and the of a member bank does not include an executive officer of a bank disposition of such requests. These records may be holding company of which the member bank is a subsidiary or of any disposed of after two years from the date of the other subsidiary of that bank holding company unless the executive officer is also an executive officer of the member bank. request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1984 3. Paragraph (a) of Section 215.20 is revised and the drawal of seven to 31 days. Except as provided in first sentence of paragraph (b) is amended to read as paragraphs (d) and (e), no member bank shall pay follows: interest on any time deposit of less than $2,500 with an original maturity or required notice period prior to Section 215.20—Authority, Purpose, and Scope withdrawal of 31 days or less at a rate in excess of 5—V2 per cent. (a) Authority. This Subpart is issued pursuant to (c) Savings deposits. section ll(i) of the Federal Reserve Act (12 U.S.C. (1) Except as provided in paragraph (g), no member 248(i» and 12 U.S.C. 1972 (2)(F)(vi). bank shall pay interest at a rate in excess of 5-V2 per (b) Purpose and scope. This Subpart implements the cent on any savings deposit. reporting requirements of Title VIII of the Financial (2) A member bank may pay interest on any deposit Institutions Regulatory and Interest Rate Control Act or account subject to negotiable or transferable of 1978 (FIRA) (P.L. 95-630) as amended by the orders of withdrawal that is authorized pursuant to Garn-St Germain Depository Institutions Act of 1982 12 U.S.C. 1832(a) or a deposit or account described (P.L. 97-320), 12 U.S.C. 1972 (2)(g).*** in section 217.5(c)(2)— AMENDMENTS TO REGULATION Q The Board has amended 12 CFR Part 217 (Regulation (ii)(A) at any rate agreed to by the depositor on Q-Interest on Deposits) to incorporate rules of the any deposit or account subject to negotiable or Depository Institutions Deregulation Committee transferable orders of withdrawal that is autho- ("DIDC"), adopted pursuant to the Depository Insti- rized pursuant to 12 U.S.C. 1832(a) subject to tutions Deregulation Act of 1980 (Title II of Pub. L. the conditions of this paragraph (c)(2) with an 96-221). The amendments to Regulation Q are techni- initial balance and an average deposit balance cal in nature and conform the Board's rules to those of (as computed in paragraph (c)(2)(ii)(B) of this DIDC. These amendments became effective January section) of no less than $2,500. However, for an 1, 1984. Other conforming amendments are effective account with an average balance of less than January 1, 1985, and January 1, 1986, as set forth $2,500, a member bank shall not pay interest in below: excess of the rate specified in paragraph (c)(2)(i) The Board amends 12 CFR Part 217, effective on the of this section for the entire computation peridates indicated, as follows: od, as described in paragraph (c)(2)(ii)(B). Further, a member bank may pay interest at any Part 217—Interest on Deposits rate agreed to by the depositor on an account issued under this paragraph (c)(2)(ii), regardless 1. Effective January 1, 1984: of amount, if that account consists of funds deposited to the credit of, or in which the entire Section 217.4—[Amended] beneficial interest is held by, an individual pursuant to an Individual Retirement Account a. Section 217.4 is amended by removing paragraphs agreement or Keogh (H.E. 10) Plan establish (d)(l)(iii)(D) and (E) and in paragraph (d)(6) by remov- pursuant to 26 U.S.C. (I.R.C. 1954) 219, 401, 408 and related provisions. ing "Subparagraphs (l)(iii)(E) and" and inserting "paragraph" in its place; and b. Section 217.7 introductory text is amended by revising paragraphs (b), (c)(1), (c)(2), and (c)(2)(ii)(A); revising paragraph (e)(1); and revising paragraph (e) Seven-to 31-day time deposits. (g)(1), as follows: (l)(i) Notwithstanding paragraph (d), a member bank may pay interest at any rate as agreed to by Section 217.7—Supplement: Maximum rates of the depositor on any time deposit with a maturity Interest Payable by Member Banks on Time or required notice period of not less than seven and Savings Deposits days nor more than 31 days— (A) in an amount of $2,500 or more; or (B) notwithstanding paragraph (b), if such funds (b) Time deposits of less than $2,500 with original are deposited to the credit of, or in which the maturities or required notice periods prior to with- entire beneficial interest in such funds is held Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 33 by, an individual pursuant to an Individual Section 217.7—Supplement: Maximum Rates of Retirement Account agreement or Keogh (H.R. Interest Payable by Member Banks on Time 10) Plan established pursuant to 26 U.S.C. and Savings Deposits. (I.R.C. 1954) 219, 401, 408 and related provisions. (ii) However, except as provided in paragraph (c) Savings deposits. *** (e)(l)(i)(B), a member bank shall not pay interest (2) A member bank may pay interest on any deposit in excess of the ceiling rate for regular savings or account— deposits or account specified in paragraph (c)(1) (i) described in § 217.5(c)(2) at a rate not to exceed of this section on any day the balance in a time 5-y* per cent; or deposit issued under this paragraph is less than (ii) subject to negotiable or transferable orders of $2,500. withdrawal that is authorized pursuant to 12 U.S.C. 1832(a) at any rate agreed to by the depositor. (g) Money market deposit accounts. (e) Seven- to 31-day time deposits. (l)(i)Notwithstanding paragraph (c), a member bank (1) Notwithstanding paragraph (d), a member bank may pay interest at any rate on a deposit account may pay interest at any rate as agreed to by the as described in this paragraph— depositor on any time deposit with a maturity or (A) with an initial balance of no less than $2,500 required notice period prior to maturity of not less and an average deposit balance (as computed in than seven days nor more than 31 days. paragraph (g)(2) of no less than $2,500; or (B) that consists of funds deposited to the credit of, or in which the entire beneficial interest is (g) Money mart deposit accounts. held by an individual pursuant to an Individual (1) Notwithstanding paragraph (c), a member bank Retirement Account agreement or Keogh (H.R. may pay interest at any rate on a deposit account as 10) Plan established pursuant to 26 U.S.C. described in this paragraph. (I.R.C. 1954) 219, 401, 408 and related provisions. (ii) However, except as provided in paragraph (g)(l)(i)(B), for an account with an average balance of less than $2,500, a member bank shall not REVISION OF REGULATION X pay interest in excess of the ceiling rate specified for NOW accounts under paragraph (c)(2)(i) of The Board has revised, in its entirety, Regulation X, this section for the entire computation period, as which governs borrowers who obtain credit for the described in paragraph (g)(2) of this section. purpose of purchasing or carrying securities. The newly revised Regulation X is written in simplified language, organized in a logical fashion and reduced in regulatory burden. Effective January 23, 1984, the Board revises Regu- Sections 217.1 and 217.7—[Amended] lation X in its entirety to read as follows: 2. Effective January 1, 1985: Part 224—Borrowers of Securities Credit Sections 217.1(h)(l)(iii)(B) and 217.7 are amended by removing "$2,500" wherever it appears and inserting Section 224.1 Authority, Purpose, and Scope "$1,000" in its place. Section 224.2 Definitions Section 224.3 Margin Regulations to be Applied 3. Effective January 1, 1986: by Nonexempted Borrowers a. Section 217.l(h)(iii) is amended by removing "(A)", inserting a period after the phrase "seven days", and Section 224.1—Authority, Purpose, and Scope removing "or" and paragraph (B); and b. Section 217.7 is amended by: removing the text of (a) Authority and purpose. Regulation X (this part) is paragraph (b) and inserting (Reserved) in its place; by issued by the Board of Governors of the Federal removing paragraph (g)(8); and by revising paragraphs Reserve System (the Board) under the Securities Ex- (c)(2), (e)(1), and (g)(1) to read as follows: change Act of 1934, as amended (the Act) (15 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1984 78a et seq.). This part implements section 7(f) of the more than 50 per centum of the total combined voting Act (15 U.S.C. 78g(f)), the purpose of which is to power of all classes of stock entitled to vote, or more require that credit obtained within or outside the than 50 per centum of the total value of shares of all United States complies with the limitations of the classes of stock. Board's Margin Regulations G, T, and U (12 CFR 207, 220, and 221, respectively). (b) Scope and exemptions. The Act and this part apply the Board's margin regulations to United States persons and foreign persons controlled by or acting on Section 224.3—Margin Regulations to be behalf of or in conjunction with United States persons Applied by Nonexempted Borrowers (hereinafter borrowers), who obtain credit outside the United States to purchase or carry United States (a) Credit Transactions Outside the United States. No securities, or within the United States to purchase or borrower shall obtain purpose credit from outside the carry any securities (both types of credit are hereinaf- United States unless it conforms to the following ter referred to as purpose credit). The following bor- margin regulations: rowers are exempt from the Act and this part: (1) Regulation T (12 CFR 220) if the credit is (1) any borrower who obtains purpose credit within obtained from a foreign branch of a brokei-dealer; the United States, unless the borrower willfully (2) Regulation U (12 CFR 221) if the credit is causes the credit to be extended in contravention of obtained from a foreign branch of a bank, except for Regulations G, T, or U. the requirement of a purpose statement (12 CFR (2) any borrower whose permanent residence is 221.3(b) and (c)); and outside the United States and who does not obtain (3) Regulation G (12 CFR 207) if the credit is or have outstanding, during any calendar year, a obtained from any other lender outside the United total of more than $100,000 in purpose credit ob- States, except for the requirement of a purpose tained outside the United States; and statement (12 CFR 207.3(e) and (f)). (3) any borrower who is exempt by Order upon (b) Credit Transactions Within the United States. Any terms and conditions set by the Board. borrower who willfully causes credit to be extended in contravention of Regulations G, T, or U, and who, therefore, is not exempted by section 224.1(b)(1) of this part, must conform the credit to the margin regulation that applies to the lender. (c) Inadvertent noncompliance. No borrower who Section 224.2—Definitions inadvertently violates this part and who acts to remedy the violation as soon as practicable shall be deemed in The terms used in this part have the meanings given to violation of this part. them in sections 3(a) and 7(f) of the Act, and in Regulations G, T, and U. Section 7(f) of the Act contains the following definitions: (a) "United States person" includes a person which is organized or exists under the laws of any State or, in the case of a natural person, a citizen or resident of the AMENDMENT TO RULES REGARDING United States; a domestic estate; or a trust in which DELEGATION OF AUTHORITY one or more of the foregoing persons has a cumulative direct or indirect beneficial interest in excess of 50 per The Board is amending 12 C.F.R. Part 265, its Rules centum of the value of the trust. Regarding Delegation of Authority, to delegate to the (b) "United States security" means a security (other Federal Reserve Banks authority to act on notificathan an exempted security) issued by a person incor- tions by bank holding companies to invest in export porated under the laws of any State, or whose princi- trading companies. It is anticipated that this delegation pal place of business is within a State. of authority would aid in the expeditious processing of (c) "Foreign person controlled by a United States export trading company notifications. person" includes any noncorporate entity in which Effective December 20, 1983, the Board of Gover- United States persons directly or indirectly have more nors amends its Rules Regarding Delegation of Authan a 50 per centum beneficial interest, and any thority (12 C.F.R. Part 265) by adding a new section, corporation in which one or more United States per- 265.2(f)(58), and by revising section 265.2(a)(2) to read sons, directly or indirectly, own stock possessing as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 Part 265—Rules Regarding Delegation of cifically covered by the list of services contained Authority in section 4(c)(14)(F)(ii) of the BHC Act; (v) the proposed leveraging ratio of the ETC Section 265.2—Specific Functions Delegated to (assets: capital) does not exceed 10:1, and Board Employees and to Federal Reserve (vi) no other significant policy issue is raised on Banks which the Board has not previously expressed its view. (a) *** (2) Under the provisions of sections 18(c) and 18(c)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c) and 1828(c)(4)), sections 3(a), 4(c)(8) and 4(c)(14) of the Bank Holding Company Act (12 BANK HOLDING COMPANY, BANK MERGER, AND U.S.C. 1842(a), 1843(c)(8) and (14)), the Change in BANK SERVICE CORPORATION ORDERS ISSUED Bank Control Act (12 U.S.C. 18170)) and section 25 BY THE BOARD OF GOVERNORS and 25(a) of the Federal Reserve Act (12 U.S.C. 601-604a and 611 et seq.), and sections 225.3(b) and Orders Issued Under Section 3 of Bank Holding (c), and 225.4(a) and (b) and 225.7 of Regulation Y Company Act (12 C.F.R. 225.3(b) and (c), 225.4(a) and (b), and 225.7), sections 211.3(a), 211.4(c), 211.5(c) and The Commercial Bank of Korea, Ltd., 211.34 of Regulation K (12 C.F.R. 211.3(a), 211.4(c), Seoul, Korea 211.5(c) and 211.34), to furnish reports on competitive factors involved in a bank merger to the Comp- Order Approving Formation of Bank Holding troller of the Currency and the Federal Deposit Company Insurance Corporation and to take actions the Reserve Bank could take except for the fact that the The Commercial Bank of Korea, Ltd., Seoul, Korea, Reserve Bank may not act because a director or has applied for the Board's approval under section senior officer of any holding company, bank, or 3(a)(1) of the Bank Holding Company Act (12 U.S.C. company involved in the transaction is a director of § 1842(a)(1)) to become a bank holding company by a Federal Reserve Bank or branch. acquiring all of the voting shares of Korea Commercial Bank of New York, New York, New York ("Bank"), a proposed new bank. ^ *** Notice of the application, affording the opportunity (58) Under section 4(c)(14) of the Bank Holding for interested persons to submit comments and views, Company Act and Subpart C of the Board's Regula- has been given in accordance with section 3(b) of the tion K, to issue a notice of intention not to disap- Act. The time for filing comments and views has prove a proposed investment in an export trading expired, and the Board has considered the application company if all the following criteria are met: and all comments received in light of the factors set (i) the proposed export trading company will be a forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). wholly-owned subsidiary of a single investor, or Applicant, with total assets of $10.5 billion, is the ownership will be shared with an individual or second largest of five commercial banks engaged in individuals involved in the operation of the export general banking business in Korea.1 Applicant has 130 trading company ; offices in Korea, branches in London, Singapore, and (ii) a bank holding company investor and its lead Tokyo, and a finance company in Hong Kong. Combank meet the minimum capital adequacy guide- mercial Bank's operations in the United States consist lines of the Board and the Comptroller of the of agencies in New York and Los Angeles and a non- Currency or have enacted capital enhancement insured branch office in Chicago.2 plans that have been determined by the appropriate supervisory authority to be acceptable; (iii) the proposed export trading company will take title to goods only against firm orders, except that the company may maintain inventory of goods worth up to $2 million; 1. All banking data are as of December 31, 1982. (iv) the proposed activities of the export trading 2. Applicant's Chicago branch is limited in scope, accepting only such deposits as are permissible for an Edge Act Corporation. company do not include product research or de- Applicant has chosen New York as its "home state" for purposes of sign, product modification, or activities not spe- the International Banking Act of 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1984 Bank, a proposed new institution, will provide a full more than two years after becoming a bank holding range of commercial banking services in the Metropol- company, in excess of 5 percent of the shares of a itan New York banking market.3 Applicant has an company that engages in the business of underwriting, agency in New York, but the agency is relatively small selling or distributing securities in the United States. and, moreover, it is not authorized to accept domestic Consistent with this requirement, Applicant has comdeposits. In view of the de novo status of Bank and mitted to reduce its interest in Korea Associates based upon the facts in the record, the Board con- Securities, Inc., to less than 5 percent within two years cludes that the proposed transaction will have no of consummation of the proposed transaction. adverse effect on existing or probable future competi- The Board has also determined that considerations tion, nor will it increase the concentration of resources relating to the convenience and needs of the communiin any relevant market. Thus, competitive consider- ty to be served are consistent with approval. Based on ations are consistent with approval of the application. the foregoing and other facts of record, the Board has Section 3(c) of the Act requires in every case that determined that consummation of the transaction the Board consider the financial resources of the would be consistent with the public interest and that applicant organization and the bank to be acquired. In the application should be and hereby is approved. The this case, the Board noted that the primary capital transaction shall not be made before the thirtieth ratio of Applicant is below the minimum capital guide- calendar day following the effective date of this Order, lines for U.S. multinational bank holding companies. or later than three months after the effective date of The Board also noted, however, that Bank is being this Order, unless such period is extended for good established de novo, will initially be small in relation to cause by the Board or by the Federal Reserve Bank of Applicant, and will be strongly capitalized. As Bank's New York pursuant to delegated authority. size increases, the Board will expect Applicant to By order of the Board of Governors, effective maintain Bank among the more strongly capitalized December 21, 1983. banking organizations of comparable size in the United States. In view of these and other facts of record, Voting for this action: Chairman Volcker and Governors the Board finds that considerations relating to banking Martin, Wallich, Partee, Teeters, Rice, and Gramley. factors are consistent with approval. In reaching this conclusion, the Board noted that the JAMES MCAFEE, application raises the general question of whether the [SEAL] Associate Secretary of the Board capital standards applicable to domestic bank holding companies should also be applied to foreign banking organizations having, or seeking to acquire, domestic banking operations. This question presents a number of complex issues that the Board believes requires Commercial Bankshares Corp., careful consideration and that the Board has under Adrian, Michigan review. Applicant has a 9.1 percent interest in Korea Asso- Order Approving Acquisition of a Bank ciates Securities, Inc., a company engaged in general securities business in the United States. While this Commercial Bankshares Corp., Adrian, Michigan, a interest appears to meet the requirements for the bank holding company within the meaning of the Bank grandfather privileges under section 8(c) of the Inter- Holding Company Act of 1956, as amended (the national Banking Act of 1978 (the "IBA")(12 U.S.C. "Act")(12 U.S.C. § 1841 et seq.), has applied for the § 3106(c)), the Board has previously determined that Board's approval under section 3(a)(3) of the Act an otherwise grandfathered foreign banking organiza- (12 U.S.C. § 1842(a)(3)) to acquire all of the voting tion loses that status upon the acquisition of a U.S. shares of The Jipson-Carter State Bank, Blissfield, subsidiary bank.4 Under section 4(a)(2) of the Act and Michigan ("Bank"). section 8(e) of the IB A, a company may not retain, for Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act. The time for filing comments and views has expired, 3. The Metropolitan New York banking market is defined to and the Board has considered the application and all include New York City, Nassau, Westchester, Rockland, Putnam, and western Suffolk Counties in New York; portions of Bergen and comments received in light of the factors set forth in Hudson Counties in New Jersey; and a portion of Fairfield County in section 3(c) of the Act. 12 U.S.C. § 1842(c). Connecticut. Applicant, with one subsidiary bank, controls total 4. Midland Bank Limited, 67 FEDERAL RESERVE BULLETIN 729, 733 n. 9 (1981). deposits of $102.7 million, representing 0.22 percent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 total deposits in commercial banks in the state.1 Bank Board has indicated that thrift institutions have becontrols total deposits of $27.8 million, representing come, or at least have the potential to become, major 0.06 percent of total deposits in commercial banks in competitors of commercial banks.4 On this basis, the the state. Both Applicant and Bank are among the Board has accorded substantial weight to the influence smaller commercial banking organizations in Michi- of thrift institutions in its evaluation of the competitive gan. Upon consummation of this proposal, Applicant effects of a proposal. In this case, the increase in would control total deposits of $130.5 million, repre- concentration in the market is alleviated by the pressenting 0.28 percent of total commercial bank deposits ence of two savings and loans in the market, one of in the state. Applicant's acquisition of Bank would which is the largest depository institution in the marhave no significant adverse effect on the concentration ket, controlling 21.9 percent of total deposits in comof banking resources in Michigan. mercial banks and saving and loans in the market. Applicant and Bank both compete in the Lenawee Both savings and loans in the banking market offer a County banking market.2 Applicant is the largest of 11 full range of consumer services and transaction accommercial banking organizations in the market, con- counts.5 Consequently, while consummation of the trolling 22.5 percent of total deposits in commercial proposal would eliminate some existing competition in banks in the market. Bank is the seventh largest the relevant banking market, the Board has detercommercial banking organization in the market, con- mined that in view of all of the facts of record, trolling 6.1 percent of total deposits in commercial consummation of this proposal would not have a banks in the market. Upon consummation of this significant adverse effect on existing competition in proposal, Applicant will remain the largest commercial the Lenawee County banking market. banking organization in the market controlling 28.6 The financial and managerial resources of Applicant percent of total deposits in commercial banks in the and Bank are considered generally satisfactory, and market. their future prospects appear favorable. Applicant has The Lenawee County banking market is moderately stated that upon consummation of this proposal, it will concentrated, with a four-firm concentration ratio of cause Bank to offer new services and products as well 65.6 percent and a Herfindahl-Hirschman Index improve its existing services and products. Applicant ("HHI") of 1353 points based on deposits in commer- will cause Bank to increase its loan and deposit cial banks in the market.3 Upon consummation of this solicitation program, expand its commercial, agriculproposal, the four-firm concentration ratio would in- tural, and mortgage lending programs, and offer credit crease by 6.1 percentage points to 71.7 percent and the cards and revolving lines of credit which are not HHI would increase by 275 points to 1628. currently available at Bank. Affiliation with Applicant The acquisition of the seventh largest banking orga- will also allow Bank to offer discount brokerage and nization in the market by the largest banking organiza- trust services to its customers through Applicant's tion in the market could well be cause for denial of an subsidiary bank. Further, Applicant proposes to application, where, after the merger, the applicant broaden Bank's current line of checking plans and would control 28.6 percent of total deposits in com- types of certificates of deposits. Accordingly, factors mercial banks in the market, were it not for certain relating to the convenience and needs of the communimitigating circumstances. ties to be served lend some weight toward approval The structure of the Lenawee County banking mar- and outweigh any adverse competitive effects that ket and competition from thrifts are important mitigat- might result from consummation of this proposal. ing factors. First, upon consummation of this propos- Based on the foregoing and other considerations al, nine commercial banking alternatives would remain reflected in the record, the Board has determined that in the market. Second, in its evaluation in previous this proposal should be and hereby is approved. The cases of the competitive effects of a proposal, the 4. Comerica (Bank of the Commonwealth), 69 FEDERAL RESERVE BULLETIN 797 (1983); General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); First Tennessee National Corpora- 1. Banking data are as of December 31, 1982. tion, 69 FEDERAL RESERVE BULLETIN 298 (1983). 2. The Lenawee County banking market is approximated by 5. If the deposits of the savings and loans were taken into account Lenawee County, Michigan. in computing market shares, Applicant's market share would be 16.9 3. Under the United States Justice Department Merger Guidelines percent, Bank's market share would be 4.6 percent, the four-firm (June 14,1982), a market with an HHI between 1000 and 1800 points is concentration ratio would be 64.3 percent, and the HHI would be moderately concentrated. The Justice Department Guidelines state 1276. Upon consummation of this proposal, Applicant's market share that where a post-merger market HHI is between 1000 and 1800 and would increase by 4.6 percent to 21.5 percent, the four-firm concenthe merger produces an increase in the HHI of 100 points or more, the tration level would increase by 4.6 percent to 68.9 percent, and the Justice Department is more likely than not to challenge such a merger. HHI would increase by 155 points to 1431. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 1984 transaction shall not be consummated before the thirti- markets, the Geneva banking market.2 St. Lawrence eth calendar day following the effective date of this Bank is the fourth largest commercial banking organi- Order nor later than three months after the effective zation in this market and operates three offices, condate of this Order, unless such period is extended for trolling 15.3 percent of the total deposits in commergood cause by the Board or the Federal Reserve Bank cial banks in the market. Ovid Bank is the smallest of of Chicago, acting pursuant to delegated authority. five commercial banks in the Geneva banking market, By order of the Board of Governors, effective with 8.8 percent of the total deposits in commercial December 27, 1983. banks in the market. Upon consummation of the proposal, Applicant would become the second largest Voting for this action: Chairman Volcker and Governors commercial banking organization in the market and Wallich, Partee, Rice, and Gramley. Absent and not voting: would control 24.1 percent of the total deposits in Governors Martin and Teeters. commercial banks in the market. The Geneva banking market is highly concentrated, with the four largest WILLIAM W. WILES, commercial banking organizations controlling 91.3 [SEAL] Secretary of the Board percent of the total deposits in commercial banks in the market, and a Herfindahl-Hirschman Index ("HHI") of 2262.3 Upon consummation of the pro- Community Bank System, Inc., posed transaction, the four-firm concentration ratio Canton, New York would increase to 100 percent and the HHI would increase by 269 points to 2531.4 Order Approving Formation of a Bank Holding While the competitive effects of the proposed trans- Company action are of concern to the Board, the Board believes that the anticompetitive effects of the proposal are Community Bank System, Inc., Canton, New York, mitigated by the role of thrift institutions in the marhas applied for the Board's approval under section ket. The Board has previously indicated that thrift 3(a)(1) of the Bank Holding Company Act (12 U.S.C. institutions have become, or at least have the potential § 1842(a)(1)) to become a bank holding company by to become, major competitors of commercial banks.5 acquiring the successors by merger to The St. Law- In a number of recent cases, the Board has considered rence National Bank, Canton, New York ("St. Law- the presence and extent of competition offered by rence Bank"), and The First National Bank of Ovid, thrift institutions in the relevant banking market.6 The Ovid, New York ("Ovid Bank"). Board believes that thrift institutions exert a consider- Notice of the application, affording opportunity for able competitive influence in the Geneva banking interested persons to submit comments, has been market inasmuch as they are providers of NOW acgiven in accordance with section 3(b) of the Act. The counts, other transction accounts, and consumer time for filing comments has expired, and the applica- loans. In addition, thrift institutions in this market tion and all comments received have been considered have the power to and are in fact engaged in the business of making commercial loans and provide an in light of the factors set forth in section 3(c) of the alternative for such services for customers in the Act. Geneva banking market. There are four thrift institu- Applicant, a nonoperating Delaware corporation, tions in the Geneva banking market, which control was organized for the purpose of becoming a bank $173.3 million in deposits, representing approximately holding company by acquiring St. Lawrence Bank and Ovid Bank, which hold deposits of $191.3 million and $21.4 million, respectively.1 Upon acquisition of the banks, Applicant would control the 33rd and 116th 2. The Geneva banking market is approximated by Seneca County largest commercial banks in New York that together and a portion of Ontario County in New York. hold approximately 0.1 percent of the total deposits in 3. Market data are as of June 30, 1982. 4. Under the Department of Justice Merger Guidelines, a market in commercial banks in the state. In the Board's view, which the post-merger HHI over 1,800 is considered highly concenconsummation of this proposal would not result in a trated. In such markets, the Department is more likely than not to significant increase in the concentration of commercial challenge a merger that produces an increase in the HHI of 100 points or more. banking resources in the state. 5. Comerica Inc., 69 FEDERAL RESERVE BULLETIN 797 (1983); St. Lawrence Bank operates in five banking mar- General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN kets. Ovid Bank's sole office operates in one of these 802 (1983); First Tennessee National Corporation, 69 FEDER/ ' RE- SERVE BULLETIN 298 (1983). 6. Sun Banks Inc., 69 FEDERAL RESERVE BULLETIN 934 (I983); Monmouth Financial Services, Inc., 69 FEDERAL RESERVE BULLETIN 867 (1983). United Bank Corporation of New York, 67 FEDERAL 1. Data are as of June 30, 1983. RESERVE BULLETIN 861 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 44.4 percent of the total deposits in the market. In Order, unless such period is extended for good cause view of the size and commercial activity of these by the Board or by the Federal Reserve Bank of New institutions in the market, the Board considers the York, pursuant to delegated authority. presence of thrift institutions in the Geneva banking By order of the Board of Governors, effective market as a significant factor in assessing the competi- December 20, 1983. tive effects of this transaction. If the deposits held by thrift institutions in the market are considered, the Voting for this action: Vice Chairman Martin and Goverfour-firm concentration ratio would decline to 53.8 nors Wallich, Partee, Rice, and Gramley. Dissenting from percent and the HHI would be reduced to 1290 points. this action: Governor Teeters. Absent and not voting: Chairman Volcker. Upon consummation of the transaction, Applicant would become the fifth largest of eight depository institutions in the market, with 13.4 percent of total JAMES MCAFEE, [SEAL] Associate Secretary of the Board deposits and the HHI would increase by only 83 points. Consequently, while consummation of the proposal would eliminate some existing competition in the Dissenting Statement of Governor Teeters relevant banking market, the Board has determined that in view of all of the facts of record, consummation I would deny this application because I believe that of this proposal would not have a significant adverse consummation of the proposal would tend substantialeffect on existing competition in the Geneva banking ly to lessen competition in the Geneva market. market.7 Thus, competitive effects are consistent with After consummation of this proposal, Applicant will approval. become the second largest commercial banking institu- The financial and managerial resources of Appli- tion in the market and control 24.1 percent of the total cant, St. Lawrence Bank and Ovid Bank are regarded deposits in commercial banks in the market. The as satisfactory and their prospects appear favorable. Geneva banking market is already highly concentrat- Although no new banking services would be intro- ed, and, upon consummation of the proposal, the fourduced to the Geneva banking market as a result of the firm concentration ratio would increase to 100 percent proposed transaction, the customers of Ovid Bank and the Herfindahl-Hirschman Index would increase would benefit from the addition of new services, by 269 points, from 2262 to 2531. including a broad range of trust services, data process- In view of these facts, I believe the elimination of a ing and international banking services that are current- competitor by placing the market's fourth and fifth ly being offered by St. Lawrence Bank. Thus, consid- largest commercial banking organizations under comerations relating to convenience and needs of the mon control would have significantly adverse effects community to be served are consistent with approval. on competition in the Geneva banking market. Based upon the foregoing and all the facts of record, it is the Board's judgment that consummation of the December 20, 1983 transaction would be consistent with the public interest and should be approved. On the basis of the record and for the reasons Corporation for International Agricultural discussed above, the Board has determined that the Production Limited, application should be, and hereby is, approved. The Ramat-Gan, Israel transaction shall not be consummated before the thirtieth day following the effective date of this Order or H.S. Holding Company, Ltd., later than three months after the effective date of this Tel Aviv, Israel S.H. Resources and Development Corporation, Los Angeles, California Order Denying Applications to Become Bank Holding Companies 7. The Board has also considered the effect of consummation of this proposal on probable future competition in the four markets where St. Lawrence Bank, but not Ovid Bank, compete. Because of Ovid Corporation for International Agricultural Production Bank's size, the Board does not consider Ovid Bank to be a probable Limited, Ramat-Gan, Israel ("CIAP"); H.S. Holding future entrant into any of the markets where St. Lawrence Bank Company, Ltd., Tel Aviv, Israel ("H.S. Ltd."); and, competes. Accordingly, consummation of this proposal would have no effect on probable future competition in any relevant market. S.H. Resources and Development Corporation, Los Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1984 Angeles, California ("S.H. Resources"), have applied shareholders of these companies are subject to Israeli for the Board's approval under section 3(a)(1) of the capital export controls that restrict their ability to add Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) capital to S.H. Resources. Applicants are similarly to become bank holding companies by acquiring, restricted by the Israeli capital export controls in their through S.H. Resources, 80 percent of the voting ability to serve as sources of financial strength to shares of Empire State Bank of Layton, Layton, Utah. Bank. Notice of the applications, affording opportunity for The Board's concern regarding the Applicants' abiliinterested persons to submit comments and views, has ty to serve as sources of financial strength to Bank is been given in accordance with section 3(b) of the Act. heightened by Bank's recent overall performance and The time for filing comments and views has expired, other facts of record. Applicants are also without any and the Board has considered the application and all previous banking experience and their plans for Bank comments received in light of the factors set forth in appear to be unrealistic. Based on all of the facts of section 3(c) of the Act. record, it does not appear likely that Applicants would CIAP and H.S. Ltd. are nonoperating Israeli holding serve as sources of strength to Bank, or would have companies organized for the purpose of owning shares the financial and managerial resources to meet unforeof S.H. Resources. S.H. Resources is currently a seen problems that might arise with Bank. domestic nonbanking organization with interests in Applicants do not propose to make any significant real estate, a shopping center, and various mining changes in Bank's services. Accordingly, convenience leases and oil-related partnerships.1 S.H. Resources and needs factors are consistent with, but lend no does not own or operate any banking institutions. weight toward, approval of these applications. Bank, with total assets of $3 million, is among the On the basis of all of the facts of record, the Board smaller commercial banking institutions in Utah.2 concludes that the banking considerations involved in Bank controls approximately $2.3 million in deposits, this proposal present adverse factors bearing upon the representing 0.5 percent of the deposits in commercial financial and managerial resources and future prosbanking institutions in the Ogden, Utah, banking mar- pects of Applicants and Bank. Such adverse factors ket, making Bank the smallest commercial banking are not outweighed by any procompetitive effects or institution in the relevant banking market.3 by benefits that would result in better serving the None of the Applicants conducts any banking activi- convenience and needs of the community. Accordingties in Utah and none of the principals of the Appli- ly, the Board concludes that approval of these applicacants are affiliated with any other banking organization tions would not be in the public interest and the in Utah. Thus, consummation of the proposed transac- applications should be denied. tion would not result in any adverse effects upon On the basis of the facts of record, the applications competition or in an increase in the concentration of are hereby denied for the reasons summarized above. banking resources in Utah or in any other relevant By order of the Board of Governors, effective area. Accordingly, the Board concludes that competi- December 23, 1983. tive considerations are consistent with approval. The Board has indicated on previous occasions that Voting for this action: Chairman Volcker and Governors a holding company should serve as a source of finan- Wallich, Partee, Rice, and Gramley. Absent and not voting: Governors Martin and Teeters. cial and managerial strength to its subsidiary bank and that the Board would closely examine the condition of JAMES MCAFEE, an applicant in each case with this consideration in [SEAL] Associate Secretary of the Board mind. In this case, the acquisition of Bank would deplete the cash resources of S.H. Resources and leave it dependent upon the sale of assets to service its acquisition debt. CIAP and H.S. Ltd. are shell companies Harris Bankcorp, Inc., that are not sources of strength to S.H. Resources. Chicago, Illinois Moreover, CIAP, H.S. Ltd., and the individual Israeli Order Approving Acquisitions of Bank Holding Companies and Banks 1. S.H. Resources has committed to conform its activities to the Harris Bankcorp, Inc., Chicago, Illinois, a bank holdrequirements of section 4 of the Bank Holding Company Act (12 U.S.C. § 1843) within two years of obtaining approval to acquire ing company within the meaning of the Bank Holding the shares of bank. Company Act ("Act"), has applied for approval under 2. All banking data are as of June 30, 1983. section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to 3. The relevant banking market is approximated by the Ogden, Utah, SMSA. acquire The Hinsdale Capital Corporation, Hinsdale, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 Illinois, and its subsidiary, The First National Bank of Independent Bankshares, Inc., Hinsdale, Hinsdale, Illinois ("Hinsdale Bank"); Abilene, Texas Firstwin Corporation, Winnetka, Illinois, and its subsidiary, The First National Bank of Winnetka, Win- Order Approving Acquisitions of Bank Holding netka, Illinois ("Winnetka Bank"); The Glencoe Capi- Companies and Banks tal Corporation, Glencoe, Illinois, and its subsidiary, Glencoe National Bank, Glencoe, Illinois ("Glencoe Independent Bankshares, Inc., Abilene, Texas, a bank Bank"); and First National Bank of Wilmette, Wil- holding company within the meaning of the Bank mette, Illinois ("Wilmette Bank"). Holding Company Act ("Act") (12 U.S.C. § 1841 Notice of the applications, affording opportunity for et seq.), has applied for the Board's approval under interested persons to submit comments and views, has section 3 of the Act (12 U.S.C. § 1842) to acquire been given in accordance with section 3(b) of the Act. Stamford Bancshares, Inc., Fort Worth, Texas, there- The time for filing comments and views has expired, by indirectly acquiring Stamford Financial Corporaand the applications and all comments received have tion, Fort Worth, Texas, and its subsidiary, The First been considered in light of the factors set forth in National Bank in Stamford, Stamford, Texas ("Stamsection 3(c) of the Act (12 U.S.C. § 1842(c)). ford Bank"). Applicant has also applied under section Applicant controls four banking subsidiaries with 3 of the Act to acquire the successor by merger of aggregate deposits of approximately $4.7 billion.1 As a State Bancshares, Inc., Littlefield, Texas, thereby result of this proposal, Applicant would acquire Hins- indirectly acquiring its subsidiaries, Security State dale Bank ($126.1 million in deposits), Winnetka Bank Bank, Littlefield, Texas ("Littlefield Bank"); Olton ($99.6 million in deposits), Glencoe Bank ($83.8 mil- State Bank, Olton, Texas ("Olton Bank"); and West lion in deposits), and Wilmette Bank ($15.7 million in Texas Bancshares, Inc., Muleshoe, Texas, which condeposits). In connection with the applications, the trols Muleshoe State Bank, Muleshoe, Texas ("Mule- Secretary of the Board has taken into consideration shoe Bank").1 As a result of these acquisitions, Applithe competitive effects of the proposed transactions, cant will control four additional banks. the financial and managerial resources and future Notice of these applications, affording opportunity prospects of the companies and banks concerned, and for interested persons to submit comments, has been the convenience and needs of the communities to be given in accordance with section 3(b) of the Act. The served. Having considered the record of these applica- time for filing comments has expired, and the applications in light of the factors contained in the Act, the tion and all comments received have been considered Secretary of the Board has determined that consum- in light of the factors set forth in section 3(c) of the Act mation of the transactions would be in the public (12 U.S.C. § 1842(c)). interest. On the basis of these considerations, the Applicant, the 15th largest banking organization in applications are approved. Texas, controls four subsidiary banks with aggregate The transactions shall not be consummated before deposits of $572.7 million, representing 0.48 percent the thirtieth calendar day following the etfective date of total deposits in commercial banks in the state.2 of this Order or later than three months after the Stamford Bank, with deposits of $27.9 million, repreeffective date of this Order, unless such period is senting 0.02 percent of deposits in commercial banks extended for good cause by the Board, or by the in Texas, is the 502nd largest banking organization in Federal Reserve Bank of Chicago, pursuant to delegat- the state. Littlefield Bank, with deposits of $43.6 ed authority. million, representing 0.03 percent of deposits in com- By order of the Secretary of the Board, acting mercial banks in the state, ranks 295th among banking pursuant to delegated authority for the Board of Gov- organizations in Texas. Olton Bank, with deposits of ernors, effective December 15, 1983. $30.5 million, representing 0.02 percent of deposits in commercial banks in Texas, is the 460th largest bank- JAMES MCAFEE, ing organization in the state. Finally, Muleshoe Bank, [SEAL] Associate Secretary of the Board 1. The holding company into which State Bancshares will be merged will exist only as a means to facilitate the acquisition of the voting shares of the State Bancshares. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of shares of State Bancshares. 2. All banking data are as of December 31, 1982 and reflect all acquisitions and holding company formations as of June 30, 1983. The 1. All banking data are as of September 30, 1983, and also include data, however, do not reflect Applicant's recent acquisition of the Applicant's acquisition of Bank of Naperville, Naperville, Illinois, successor to National Bank of Odessa, Odessa, Texas (assets of $82 approved by Board Order of October 20, 1983. million). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1984 with deposits of $34.9 million, representing 0.03 per- subsidiaries and the banking organizations to be accent of deposits in commercial banks in Texas, ranks quired are favorable. Affiliation with Applicant will 402nd among banking organizations statewide. Upon provide the banks to be acquired with greater opportuconsummation of the proposed transaction, Applicant nity to meet the credit needs of both small and large will become the 14th largest commercial banking orga- customers. Accordingly, factors relating to the convenization in the state controlling deposits of $709.6 nience and needs of the communities to be served are million, representing 0.58 percent of total deposits in consistent with approval of the applications. commercial banks statewide. Based on the record, the Based on the foregoing and other facts of record, the Board concludes that consummation of this proposal Board has determined that the applications should be will have no significant effects upon the concentration and are hereby approved. The proposed acquisitions of banking resources in Texas. shall not be consummated before the thirtieth calendar Applicant's subsidiary banks operate in the Abilene day following the effective date of this Order, or later banking market and the Odessa banking markets. than three months after the effective date of this None of the four banks Applicant proposes to acquire Order, unless such periods are extended for good operates in the Abilene or Odessa banking markets, cause by the Board or the Federal Reserve Bank of and each is located in a rural market that is a separate Dallas, acting pursuant to delegated authority. and distinct banking market from each of the others.3 By order of the Board of Governors, effective Accordingly, consummation of this transaction will December 19, 1983. not eliminate any existing competition between Applicant's subsidiary bank and any of the banks to be Voting for this action: Vice Chairman Martin and Goveracquired. nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker. The Board has also considered the effect of this transaction on probable future competition in the four markets in which the banks to be acquired operate in JAMES MCAFEE, [SEAL] Associate Secretary of the Board light of the Board's proposed guidelines for determining whether an intensive examination of a proposed market extension merger or acquisition is warranted.4 IVB Financial Corporation, None of the four markets meets the criteria in the Philadelphia, Pennsylvania Board's guidelines for considering a market attractive for de novo entry, since none is located in an SMSA Order Approving Formation of a Bank Holding and each market has total deposits of less than $250 Company million. Accordingly, the Board concludes that an intensive review of the effects of the proposed transac- IVB Financial Corporation, Philadelphia, Pennsylvation on probable future competition is not warranted, nia, has applied for Board approval under section and that consummation of this proposal would not 3(a)(1) of the Bank Holding Company Act (12 U.S.C. have any significant adverse effects pn probable future § 1842(a)(1)) to become a bank holding company by competition in any relevant market. acquiring shares of 1700 Bank, Jenkintown, Pennsyl- The financial and managerial resources of Appli- vania, and for Board approval under section 18(c) of cant, its subsidiaries, and each of the banking organi- the Federal Deposit Insurance Act (12 U.S.C. zations to be acquired are considered generally satis- § 1828(c)) to effect a merger between 1700 Bank and factory. In view of certain financial commitments Industrial Valley Bank and Trust Company, Philadelmade by Applicant in connection with the proposed phia, Pennsylvania ("Bank"). transactions, the future prospects of Applicant, its Notice of the applications, affording interested persons an opportunity to submit comments, has been given in accordance with section 3(b) of the Bank Holding Company Act. The time for filing comments 3. Stamford Bank's market is defined as northern Jones and has expired, and the Board has considered the applicasouthern Haskell Counties, Texas; Littlefield Bank's market is south- tions and all comments received in light of the factors ern Lamb County plus Anton in Hockley County, Texas; Olton set forth in section 3(c) of the Bank Holding Company Bank's market is northern Lamb County, Texas; and Muleshoe Bank's market is Bailey County, Texas. Act, and section 18(c)(5) of the Federal Deposit Insur- 4. "Proposed Policy Statement of the Board of Governors of the ance Act. Federal Reserve System for Assessing Competitive Factors Under the Bank Merger Act and the Bank Holding Company Act." 47 Federal Applicant is a nonoperating corporation that was Register 9017 (March 3, 1982). Although the proposed policy state- organized for the purpose of acquiring Bank. Bank is ment has not been adopted by the Board, the Board is using the policy the 13th largest commercial banking organization in guidelines in its analysis of the effects of a proposal on probable future competition. Pennsylvania, with $1.4 billion in deposits, represent- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 ing 1.9 percent of the deposits held by commercial Korea First Bank, banking organizations in the state.1 Seoul, Korea Bank is the seventh largest commercial banking organization in both the Philadelphia banking market2 Order Approving Formation of Bank Holding and the Allentown-Bethlehem-Easton banking mar- Company ket,3 with respective market shares of 5.8 percent and 3.5 percent of the deposits held by commercial bank- Korea First Bank, Seoul, Korea, has applied for ing organizations in those two markets. Neither Appli- the Board's approval under section 3(a)(1) of the cant nor its principals control another banking institu- Bank Holding Company Act ("the Act") (12 U.S.C. tion or conduct banking business in the same banking § 1842(a)(1)) to become a bank holding company by markets as Bank. Thus, consummation of the pro- acquiring all of the voting shares of Korea First Bank posed transaction would have no adverse effects on of New York, New York ("Bank"), a de novo bank. either existing or potential competition in any relevant Notice of the application, affording opportunity for market and would not increase the concentration of interested persons to submit comments and views, has resources in any relevant area. Accordingly, the Board been given in accordance with section 3(b) of the Act. has concluded that competitive considerations are The time for filing comments and views has expired, consistent with approval of the applications. and the Board has considered the application and all The financial and managerial resources of Applicant comments received in light of the factors set forth in and Bank are satisfactory, and their future prospects section 3(c) of the Act (12 U.S.C. § 1842(c)). appear favorable, especially in light of commitments Applicant, with total assets of approximately $8.9 and undertakings made by Applicant. Based on the billion, is the fourth largest commercial banking instirecord, including the commitments and undertakings tution in South Korea, operating 126 offices throughmade by Applicant, the Board has determined that out South Korea.1 Applicant also operates branches in considerations relating to banking factors are consist- Japan and England; representative offices in Japan, ent with approval. Considerations relating to the con- Singapore, West Germany, Hong Kong, and Austravenience and needs of the communities to be served lia; and a finance company in Hong Kong. In the are also consistent with approval. Thus, the Board has United States, Applicant operates a branch in Chicadetermined that consummation of the transaction go, Illinois, and agencies in New York City and Los would be consistent with the public interest and that Angeles, California. Although the International Bankthe applications should be approved. ing Act of 1978 ("IBA") (12 U.S.C. § 3101 et seq.) Accordingly, on the basis of the record and for the generally prohibits a foreign bank from operating reasons summarized above, the applications hereby branches in more than one state, the Chicago branch are approved The transaction should not be consum- of Applicant is permitted under section 5(b) of the IBA mated before the thirtieth day following the effective because it was opened before July 27, 1978. Applicant date of this Order, or later than three months after the has selected New York as its home state under the effective date of this Order, unless such period is Board's Regulation K (12 C.F.R. § 211.22(b)). Accordextended for good cause by the Board or the Federal ingly, the Board concludes that the acquisition of Bank Reserve Bank of Philadelphia under delegated by Applicant is also consistent with Section 5 of the authority. IBA (12 U.S.C. § 3103). By order of the Board of Governors, effective Bank, a de novo institution, will provide a full range November 14, 1983. of commercial banking services in the Metropolitan New York banking market.2 Applicant operates an Voting for this action: Chairman Volcker and Governors agency in New York, but the agency is relatively small Martin, Wallich, Partee, Teeters, Rice, and Gramley. and, moreover, it is not authorized to accept domestic deposits. In view of the de novo status of Bank and JAMES MCAFEE, based upon the facts in the record, the Board con- [SEAL] Associate Secretary of the Board cludes that the proposed transaction will have no 1. Bank deposit data are as of December 31, 1982; market share 1. All bamdng data are as of December 31, 1982. data are as of June 30, 1981. 2. The Metropolitan New York banking market is defined to 2. The Philadelphia banking market is approximated by the Phila- include New York City; Nassau, Westchester, Rockland, Putnam, delphia SMSA. and western Suffolk Counties in New York; portions of Bergen and 3. The Allentown-Bethlehem-Easton banking market is approxi- Hudson Counties in New Jersey; and a portion of Fairfield County in mated by the Allentown-Bethlehem-Easton SMSA. Connecticut. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 1984 adverse effects on existing or probable future competi- determined that consummation of the transaction tion, and will not increase the concentration of re- would be consistent with the public interest. Accordsources in any relevant market. Thus, competitive ingly, the Board has determined that the application considerations are consistent with approval of the should be and hereby is approved. The transaction application. shall not be made before the thirtieth calendar day Section 3(c) of the Act requires in every case that following the effective date of this Order, or later than the Board consider the financial resources of the three months after the effective date of this Order, applicant organization and the bank to be acquired. In unless such period is extended for good cause by the this case, the Board noted that the primary capital Board or by the Federal Reserve Bank of New York ratio of Applicant is below the minimum capital guide- pursuant to delegated authority. lines for U.S. multinational bank holding companies. By order of the Board of Governors, effective The Board also noted, however, that Bank is being December 21, 1983. established de novo, will initially be small in relation to Applicant and will be strongly capitalized. As Bank's Voting for this action: Chairman Volcker and Governors size increases, the Board will expect Applicant to Martin, Wallich, Partee, Teeters, Rice, and Gramley. maintain Bank among the more strongly capitalized banking organizations of comparable size in the Unit- JAMES MCAFEE, ed States. In view of these and other facts of record, [SEAL] Associate Secretary of the Board the Board finds that considerations relating to banking factors are consistent with approval. In reaching this conclusion, the Board noted that the KSAD, Inc., application raises the general question of whether the Council Bluffs, Iowa capital standards applicable to domestic bank holding companies should also be applied to foreign banking Order Approving Formation of a Bank Holding organizations having, or seeking to acquire, domestic Company banking operations. This question presents a number of complex issues that the Board believes requires KSAD, Inc., Council Bluffs, Iowa, has applied for the careful consideration and that the Board has under Board's approval under section 3(a)(1) of the Bank review. Holding Company Act (12 U.S.C. § 1842(a)(1)), to Applicant owns 9.1 percent of the voting shares of become a bank holding company by acquiring at least Korea Associates Securities, Inc., a company engaged 80 percent of the voting shares of First National Bank in the general securities business in the United States. of Council Bluffs, Council Bluffs, Iowa ("Bank"). As While this investment appears to meet the require- part of the transaction, KSAD plans to sell its nonvotments for the grandfather privileges under section 8(c) ing common stock, equivalent to about 27.2 percent of of the IBA (12 U.S.C. § 3106(c)), the Board has its total equity, to Omaha National Corporation, Omapreviously determined that an otherwise grandfath- ha, Nebraska ("ONC"), a Nebraska bank holding ered foreign banking organization loses that status company. The nonvoting stock has no contingent upon the acquisition of a U.S. subsidiary bank.3 Un- voting rights and is not convertible into voting stock. der section 4(a)(2) of the Act and section 8(e) of the Notice of the application, affording opportunity for IBA, a company may not retain, for more than two interested persons to submit comments and views, has years after becoming a bank holding company, shares been given in accordance with section 3(b) of the Act. representing in excess of 5 percent of the shares of a The time for filing comments and views has expired, company that engages in the business of underwriting, and the Board has considered the application and all selling or distributing securities in the United States. comments received, including those from the Iowa Consistent with this requirement, Applicant has com- Superintendent of Banking, in light of the factors set mitted to reduce its interest in Korea Associates forth in section 3(c) of the Act. The Superintendent Securities, Inc., to 5 percent or less within two years urges the Board to disapprove this application on the of consummation of the proposed transaction. grounds that: The Board has also determined that considerations relating to the convenience and needs of the communi- 1) ONC's nonvoting equity investment in KSAD ty to be served are consistent with approval. Based on would violate the interstate banking prohibition of the foregoing and other facts of record, the Board has section 3(d) of the BHC Act (the Douglas Amendment); and, 2) Iowa law actually prohibits interstate investments 3. Midland Bank Limited, 67 FEDERAL RESERVE BULLETIN 729, of this kind. 733 n. 9 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 The Board has carefully considered the issues raised any manner the election of a majority of KSAD's or by the Superintendent concerning the permissibility of Bank's board of directors.3 Moreover, ONC's nonvot- ONC's investment in KSAD,1 and, based upon the ing common stock investment in KSAD is not convertrecord in this case, the Board concludes that ONC's ible into voting stock, represents only slightly over investment is not barred by either state or federal law. (only 27.2) 25 percent of KSAD's total equity capital, The Douglas Amendment provides that no "applica- and does not limit in any manner KSAD's or Bank's tion" under section 3 of the BHC Act shall be ap- management or policies. Thus, ONC's proposed inproved that would permit a bank holding company to vestment in KSAD is consistent with the guidelines in acquire any voting securities, interest in, or all or the Board's policy statement on nonvoting equity substantially all of the assets of a bank located in investments by bank holding companies in out-of-state another state. The Board has interpreted the Douglas banks and Board decisions thereunder. (See, 68 FED- Amendment to prohibit those interstate investments in ERAL RESERVE BULLETIN 413 (1982)). banks that are of such significance as to require an The Superintendent, however, has raised a number application under the BHC Act; that is, where the of factual circumstances which, in his view, indicate investment would constitute the acquisition of voting that ONC would exercise a controlling influence over shares or "control" of a bank under the BHC Act. the management or policies of KSAD and thus would The Superintendent takes the position that, because control KSAD under the BHC Act.4 Among these are KSAD's "application" is pending before the Board, the facts that: the father of Applicant's four owner/ an investment by any out-of-state bank holding com- shareholders is a director and the second largest pany in KSAD would be prohibited by the Douglas shareholder of ONC, controlling 7.34 percent of Amendment, regardless of the extent or nature of the ONC's stock; a team of lenders from ONB assisted investment. This interpretation of the Douglas Amend- Bank in revising its lending policies in 1982 on a onement would prohibit an interstate nonvoting equity time one-fee basis; a trust relationship exists between investment proposed in conjunction with an applica- ONB and each of KSAD's four owners; the owners tion pending before the Board, while permitting the have lines of credit with ONB; ONB and Bank are identical investment in a bank or bank holding compa- correspondents; and Bank employs an individual preny proposed independently of a bank holding company viously employed by ONB. application and perhaps consummated shortly thereaf- The Board is of the view that none of these factors, ter. It is the Board's view, based on the language and when considered separately or together, are of suffilegislative history of the Act, that unless ONC's cient weight in the circumstances of this case to investment in KSAD would require an application establish the existence of a controlling influence under under section 3 of the BHC Act, the Douglas Amend- the BHC Act. There is no evidence that the owners of ment would not bar the investment. KSAD, or their father, are acting in any manner as Based on the facts and circumstances in this case, agents for, or on behalf of, ONC in their acquisition of the Board concludes that ONC is not required to file KSAD or that they were asked by ONC to make this for the Board's prior approval under section 3 of the investment. Further, there are no director interlocks Act to acquire the nonvoting common stock of KSAD. between ONC and KSAD, and a family relationship The BHC Act requires a bank holding company to does not by itself provide evidence of control. Indeed, obtain the Board's prior approval before acquiring none of KSAD's owners is an officer or director of more than 5 percent of the voting shares of a bank or KSAD. Further, the one-time consulting contract becontrol of the bank.2 (12 U.S.C. § 1842(a)). As indicat- tween employees of ONB and Bank does not indicate ed, ONC is not acquiring directly or indirectly more that ONB "exercises significant influence with respect than 5 percent of KSAD's or Bank's voting shares, and there is no evidence that ONC would control in 3. During the processing of this application, ONC purchased nonvoting preferred stock of Bank for $2.4 million, and 4.9 percent of 1. Under Whitney National Bank in Jefferson Parish v. Bank of Bank's voting common stock, for a total capital contribution of $2.8 New Orleans Trust Company, 379 U.S. 411 (1965), the Board is million. Upon consummation of this proposal, ONC will exchange its prohibited from approving an application by a bank holding company shares of Bank for the shares of KSAD's nonvoting, nonconvertible if consummation of the proposal contemplated by such application common stock, equivalent to 27.2 percent of KSAD's total equity. would be prohibited by a valid state law. 4. In addition, the Superintendent has requested a formal hearing 2. The Act defines control as the ownership of 25 percent or more so that the Board can make a controlling influence determination. of the voting securities of a bank, control over the election of a However, the Board is not required by the BHC Act or Regulation Y majority of its directors or the power to exercise a controlling to hold a hearing when there are no factual issues in dispute and it has influence over the management or policies of the bank. (12 U.S.C. determined not to issue a preliminary determination of control. (Cf. 12 § 1841(a)(2)). C.F.R. § 225.2(c)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1984 to the general management or overall operations. . ." KSAD, a nonoperating corporation with no subsidof Bank, as would be required to trigger the rebuttable iaries, was organized under the laws of Iowa for the presumption of control in § 225.2(b)(3) of Regulation Y purpose of becoming a bank holding company by (12 C.F.R. § 225.2(b)(3)). acquiring Bank, which controls deposits of approxi- Accordingly, based on the above and other facts of mately $95.4 million.7 Upon acquisition of Bank, record, including ONC's commitment not to exercise KSAD would control the 28th largest of 550 commercontrol over KSAD or Bank, the Board concludes that cial banking organizations in Iowa and approximately none of the relationships discussed above demonstrate 0.4 percent of the total deposits in commercial banks that ONC would exercise control or a controlling in the state. Consummation of this proposal would influence over KSAD or Bank under the BHC Act, so have no significant effects on the concentration of as to require ONC to apply to the Board under the banking resources in Iowa. BHC Act to acquire a nonvoting interest in KSAD. Bank is the fifth largest of 36 banking organizations Because ONC's proposed investment in KSAD would in the relevant banking market,8 and holds 3.1 percent not require a separate application under the BHC Act, of the total deposits in commercial banks in the it is the Board's determination that the Douglas market. Neither Applicant nor any of its principals is Amendment does not bar ONC's investment. affiliated with any other banking organization in the In addition to his challenge to the application under market and, therefore, consummation of the proposal the Douglas Amendment, the Superintendent asserts would not result in any adverse effects upon competithat section 524.1805 of the Iowa state code prohibits tion in any relevant area. Accordingly, the Board bank holding companies located outside of Iowa from concludes that competitive considerations are consistacquiring "any interest in" an Iowa bank, even where ent with approval of the application. that interest would not be prohibited by the Douglas The financial and managerial resources of KSAD Amendment.5 Under this interpretation, the Iowa stat- and Bank are regarded as generally satisfactory, parute would prohibit any nonvoting equity investment in ticularly in view of the fact that KSAD will incur no an Iowa banking organization by an out-of-state bank debt in this proposal, and a capital injection will be holding company, either in the form of preferred stock made into Bank as a result of this transaction. In or nonvoting common stock, no matter how small the addition, Bank's future prospects have improved since investment and regardless of whether or not the hold- Bank was acquired by KSAD's principals in 1982. ing company was acquiring any voting shares or Thus, considerations relating to banking factors are "control" of the Iowa bank. consistent with approval of the application. Although The Board has considered the Superintendent's KSAD does not anticipate any immediate changes in arguments concerning the permissibility under Iowa the services offered by Bank, considerations relating law of ONC's proposed investment in KSAD, and has to the convenience and needs of the community to be concluded that Iowa law does not prohibit a bank served are consistent with approval of the application. holding company from making an equity investment in Accordingly, the Board has determined that consuman Iowa bank, which does not involve the acquisition mation of the transaction would be consistent with the of 5 percent or more of the voting shares of or control public interest and that the application should be of an Iowa banking organization. Moreover, it is approved. doubtful that a state has the authority to impose a On the basis of the record, the application is apmore stringent burden on interstate commerce than proved for the reasons summarized above. The transthat contained in the Douglas Amendment.6 action shall not be consummated before the thirtieth calendar day following the effective date of this Order or later than three months after the effective date of 5. Section 524.1805 provides: "Nothing in this division shall be construed to authorize a bank holding company which is with respect to the state of Iowa an 'out-of-state bank holding company' as defined or referred to in 12 U.S.C. § 1842(d), as amended to January 1, 1971, to acquire any of the voting shares of, any interest in, all or substantially all of the assets of, or power to control in any manner the election of any of the directors of any bank in this state, unless such bank holding company was on January 1, 1971, registered with the 7. All banking data are as of December 31, 1982. Federal Reserve Board as a bank holding company, and on that date £ The relevant banking market is approximated by the Omahaowned at least two banks in this state." Council Bluffs RMA and contiguous areas east of the Elkhorn River in 6. See, Lewis v. B.T. Investment Managers, Inc., 447 U.S. 27 Douglas County, Nebraska, and all but the eastern two tiers of (1980). townships in Pottawattamie County, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 this Order, unless such period is extended for good the concentration of banking resources in any relevant cause by the Board or by the Federal Reserve Bank of area. Chicago, acting pursuant to delegated authority. This proposal represents a change of ownership of By order of the Board of Governors, effective Bank. In approving this application, the Board noted November 8, 1983. that in recent years Bank's loan loss experience increased and its earnings declined markedly. Accord- Voting for this action: Chairman Volcker and Governors ingly, the Board took into consideration Applicant's Martin, Partee, Teeters, Rice, and Gramley. Absent and not plan to reduce substantially Bank's loan losses and voting: Governor Wallich. operating expenses and improve Bank's earnings upon consummation of the proposal. Applicant's principals JAMES MCAFEE, have demonstrated a satisfactory history of managerial [SEAL] Associate Secretary of the Board performance that suggests Bank's overall performance will improve under their ownership. Also, Applicant has committed to inject $400 thousand of new equity New Mexico Bank Holding Company, capital into Bank upon consummation of this proposal. Ruidoso, New Mexico On balance, the financial and managerial resources of Applicant and Bank are considered to be consistent Order Approving Formation of a Bank Holding with approval and their future prospects appear favor- Company able. Although Applicant has proposed no new services New Mexico Bank Holding Company, Ruidoso, New or activities for Bank, there is no evidence in the Mexico, has applied for the Board's approval, pursu- record that the banking needs of the community to be ant to section 3(a)(1) of the Bank Holding Company served are not being met. Act ("Act") (12 U.S.C. § 1842(a)(1)), to become a Based on the foregoing and other facts of record, bank holding company by acquiring all of the voting including certain commitments made by Applicant to shares of Security Bank, Ruidoso, New Mexico the Board, the Board has determined that this applica- ("Bank"). tion should be and hereby is approved. This transac- Notice of the application, affording an opportunity tion shall not be consummated before the thirtieth for interested persons to submit comments and views, calendar day following the effective date of this Order has been given in accordance with section 3(b) of the or later than three months after the effective date of Act. The time for filing comments has expired and the this Order, unless such period is extended for good Board has considered the application and all com- cause by the Board or the Federal Reserve Bank of ments received in light of the factors set forth in Dallas, acting pursuant to delegated authority. section 3(c) of the Act (12 U.S.C. § 1842(c)). By order of the Board of Governors, effective Applicant, a nonoperating corporation with no sub- December 8, 1983. sidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, which holds Voting for this action: Vice Chairman Martin and Govertotal deposits of $16.5 million.1 Upon consummation nors Wallich, Partee, and Gramley. Voting against this action: Governor Rice. Absent and not voting: Chairman of this proposal, Applicant would control the 57th Volcker and Governor Teeters. largest banking organization in New Mexico and approximately .24 percent of total deposits in commer- WILLIAM W. WILES, cial banks in the state. Consummation of this proposal [SEAL] Secretary of the Board would not result in any increase in the concentration of banking resources in New Mexico. Bank is the second largest of three banking organizations in the Lincoln County banking market,2 and controls 18.6 percent of total deposits in commercial Dissenting Statement of Governor Rice banks in the market. Consummation of this proposal would not result in any significant adverse effects upon I would deny the application of New Mexico Bank competition, either existing or potential, or increase Holding Company, Ruidoso, New Mexico, to become a bank holding company by acquiring Security Bank, Ruidoso, New Mexico ("Bank"). The Board has previously indicated that a bank holding company 1. Banking data are as of December 31, 1982. should serve as a source of financial and managerial 2. The Lincoln County banking market is defined as Lincoln County, New Mexico. strength to its subsidiary bank and that the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • January 1984 would closely examine the condition of an applicant in company within the meaning of the Bank Holding each case with this consideration in mind.1 Company Act of 1956, as amended (12 U.S.C. § 1841 The Board has also cautioned against the assump- et seq.)("BHC Act"), has applied for the Board's tion of substantial amounts of debt in a bank holding approval under section 3(a)(3) of the BHC Act company formation because of concern that the bank (12 U.S.C. § 1842(a)(3)) to acquire all of the voting holding company would no longer have the financial shares of Citizens National Bank of Martinsburg, flexibility to meet unexpected problems of its subsid- Martinsburg, West Virginia ("Citizens Bank"), and iary bank or would be forced to place substantial The Bank of St. Albans, St. Albans, West Virginia demands on its subsidiary bank to meet its debt ("St. Albans Bank"). In addition, St. Albans Bank has servicing requirements.2 applied for the Board's approval under the Bank In connection with this proposal, Applicant would Merger Act ("BMA")(12 U.S.C. § 1828(c)) to merge incur a sizeable debt. Bank is Applicant's only asset with Kanalban Bank Co., St. Albans, West Virginia and sole source of income to service its debt. Based on ("Bank"), an interim bank formed for the sole purpose its recent earnings record, Bank would be unable to of effecting One Valley's acquisition of St. Albans service Applicant's debt and maintain adequate capi- Bank.1 tal.3 Applicant has submitted to the Board an operat- Notice of the applications, affording opportunity for ing plan to reduce the expenses and increase the return interested persons to submit comments and views, has on assets of Bank, which would be implemented upon been given in accordance with section 3(b) of the BHC consummation of this proposal. The success of this Act and the BMA. As required by the BMA, reports of operating plan in improving Bank's earnings is uncer- the competitive effects of the merger were requested tain, particularly in the face of strong competition from from the United States Attorney General, the Complocal banks. troller of the Currency and the Federal Deposit Insur- In view of this uncertainty, I believe that the Board ance Corporation. The time for filing comments and has placed too much weight on the prospective im- views has expired, and the Board has considered the provement of Bank's earnings. In my view, it is applications and all comments received in light of imprudent to permit so much debt in a bank holding the factors set forth in section 3(c) of the BHC Act company when the servicing of that debt is uncertain. (12 U.S.C. § 1842(c)) and under the BMA (12 U.S.C. Had Applicant been capitalized more conservatively, § 1828(c)(5)). with less debt and more equity, my difficulties with One Valley, the largest banking organization in this proposal could have been overcome. Accordingly, West Virginia, controls four banks with aggregate I believe that considerations relating to financial and deposits of $495.1 million, representing approximately managerial factors required to be considered under the five percent of total commercial bank deposits in the Bank Holding Company Act warrant denial of this state. St. Albans Bank, with deposits of $86.7 million, application. is the 26th largest commercial bank in West Virginia, holding approximately 0.9 percent of commercial bank December 8, 1983 deposits in the state. Citizens Bank, with deposits of $52.9 million, is the 51st largest commercial bank in West Virginia, holding approximately 0.5 percent of One Valley Bancorp of West Virginia, Inc., commercial bank deposits in the state. Upon consum- Charleston, West Virginia mation of the proposed transactions, One Valley would remain the largest commercial banking organi- The Bank of St. Albans, zation in the state and control 6.4 percent of the total St. Albans, West Virginia deposits in the state.2 Acquisition of St. Albans Bank and Citizens Bank would have no significant effect Order Approving Acquisition and Merger of Banks upon the concentration of banking resources in West Virginia. One Valley Bancorp of West Virginia, Inc., Charleston, West Virginia ("One Valley"), a bank holding 1. Cambridge Financial Corporation, 69 FEDERAL RESERVE BUL- LETIN 796 (1983); Holcomb Bancshares, Inc., 69 FEDERAL RESERVE BULLETIN 804 (1983). 2. Id. 3. Federal Reserve Board Policy Statement for Assessing Financial 1. The surviving bank will operate under the charter and name of Factors In the Formation of Small One-Bank Holding Companies," 66 St. Albans Bank. FEDERAL RESERVE BULLETIN 320 (1980); Federal Reserve Regulatory 2. Except as otherwise noted, banking data are as of December 31, Service 1111 4-855 and 4-856. 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 St. Albans Bank, with market deposits of $84.5 the commercial loans, including commercial real esmillion, is the sixth largest bank in the Kanawha- tate loans, in the market. On the basis of these facts, Putnam Counties banking market, controlling 5.4 per- the Board considers the presence of thrift institutions cent of commercial bank deposits in the market.3 Two in the relevant banking market a significant mitigating of One Valley's four bank subsidiaries, Kanawha factor in assessing the competitive effects of this Valley Bank, N.A., and One Valley National Bank of transaction.6 Kanawha City, a newly chartered bank, operate in this Although consummation of the proposal would elimmarket.4 One Valley, with $333.1 million in market inate some existing competition in the relevant bankdeposits, is the largest of 23 commercial banking ing market, the Board has determined that, in view of organizations in the market, controlling 21.1 percent of all of the facts of record, consummation of this propostotal deposits in commercial banks in the market. The al would not have a significant adverse effect on offices of One Valley's lead bank are approximately 13 existing competition in the Kanawha-Putnam Counties miles from St. Albans Bank. banking market. Upon consummation of the proposal, One Valley Citizens Bank is the second largest commercial bank will control 26.5 percent of the commercial bank located in the Martinsburg banking market and holds deposits in the market. The relevant banking market is approximately 15.2 percent of commercial bank demoderately concentrated, with a four-firm concentra- posits in that market.7 Applicant currently does not tion ratio of 58.7 percent and a Herfindahl-Hirschman operate in the Martinsburg market, and Citizens Bank Index ("HHI") equal to 1150. Following consumma- is nearly 300 miles distant from Applicant's nearest tion of the proposed transactions, the four-firm con- banking subsidiary. The proposed acquisition, therecentration ratio would increase to 64.1 percent and the fore, would not eliminate any existing competition. HHI would increase by 228 points to 1378. In review- The transactions also would not have any significant ing the effect of this proposal on competition, the adverse effects upon potential competition because the Board has considered the fact that the relevant bank- Martinsburg banking market is not highly concening market is only moderately concentrated and will trated. remain only moderately concentrated upon consum- The financial and managerial resources of One Valmation of the proposed acquisition of St. Albans Bank. ley, its subsidiaries, Citizens Bank, and St. Albans Moreover, in view of the significant expansion of Bank are regarded as generally satisfactory and their the commercial lending powers of federal thrift institu- future prospects appear favorable, especially in light tions authorized in the Garn-St Germain Depository of certain capital commitments made by One Valley. Institutions Act of 1982, the Board has, in a number of As a result of the proposed transactions, the customrecent cases, considered the presence and extent of ers of St. Albans Bank and Citizens Bank would competition of thrift institutions in the relevant bank- benefit from the addition of new services, including ing market as a mitigating factor.5 There are six thrift trust services, expanded credit programs and availabilinstitutions in the relevant banking market, the largest ity, and automated teller machines. Thus, considerof which holds deposits of $106.1 million and has five ations relating to convenience and needs of the commarket-area offices. Together, the thrift institutions munity to be served are consistent with approval of the control $232.8 million in deposits, representing ap- applications. proximately 12.7 percent of the total deposits in thrift On the basis of the record and for the reasons institutions and commercial banks in the Kanawha- discussed above, the Board has determined that the Putnam Counties banking market. The thrift institu- applications under the BHC Act and the BMA should tions are aggressively marketing NOW accounts and be, and hereby are, approved. The transactions shall similar instruments and are active in making commer- not be consummated before the thirtieth day following cial loans. As of June 1982, thrifts held 18.5 percent of 3. The relevant banking market is defined as Kanawha County and 6. If the presence of thrift institutions in the market were given full Putnam County, West Virginia, which includes nearly all of the weight, the post-acquisition HHI would be reduced to 1093 points. Charleston Ranally Metro Area (RMA). Banking data for the Kana- Upon consummation of the transaction, the HHI would increase by wha-Putnam Counties banking market are as of June 30, 1982. 173 points. Applicant would be the largest depository institution in the 4. On September 26, 1983, the Federal Reserve Bank of Richmond market with 18.4 percent of market deposits, and upon consummation approved One Valley's proposal to acquire this bank. of the transaction, would hold 23.1 percent of market deposits. The 5. See, e.g., Barnett Banks of Florida, 69 FEDERAL RESERVE four-firm concentration ratio would be 51.3 percent, pre-acquisition, BULLETIN 44 (1983); First Tennessee National Corporaton, 69 FED- and 56 percent, post-acquisition. ERAL RESERVE BULLETIN 298 (1983); Midlantic Banks, Inc., 69 7. Both of Citizens Bank's offices are located in the Martinsburg FEDERAL RESERVE BULLETIN 652 (1983). market, which includes Berkeley County and Jefferson County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1984 the effective date of this Order, or later than three order that arranging equity financing for certain types months after the effective date of this Order, unless of income-producing properties, subject to certain such period is extended for good cause by the Board or conditions, is closely related to banking.1 Moreover, by the Federal Reserve Bank of Richmond, pursuant the Board has by order approved an application by to delegated authority. Walter E. Heller International Corporation to engage By order of the Board of Governors, effective in this activity subject to certain conditions.2 December 12, 1983. Notice of the applications, affording opportunity for interested persons to submit comments and views, has Voting for this action: Vice Chairman Martin and Gover- been duly published in the Federal Register.3 The time nors Partee, Rice, and Gramley. Absent and not voting: for filing comments and views has expired, and the Chairman Volcker and Governors Wallich and Teeters. Board has considered the application and all comments received in light of the factors set forth in WILLIAM W. WILES, section 4(c)(8) of the BHC Act. [SEAL] Secretary of the Board Applicant, with consolidated assets of approximately $99.8 billion, is the second largest commercial banking institution in Japan and the thirteenth largest commercial banking institution in the world.4 Applicant is a registered bank holding company by virtue of Orders Issued Under Section 4 of Bank Holding its ownership of The Fuji Bank and Trust Company, Company Act New York, New York, which holds approximately $1.8 billion in total assets. Applicant also operates a Fuji Bank, Limited, branch in Chicago, Illinois; agencies in New York City Tokyo, Japan and Los Angeles, California; representative offices in Atlanta, Georgia, Houston, Texas, Seattle, Washing- Order Approving Acquisition of Walter E. Heller ton, and San Francisco, California; and an Edge and Company and Commencement of Various Corporation, Fuji Bank International, San Francisco, Nonbanking Activities California. Walter E. Heller International Corporation, with Fuji Bank, Limited, Tokyo, Japan, a registered bank total assets of approximately $6.5 billion, is engaged in holding company within the meaning of the Bank many aspects of commercial finance and commercial Holding Company Act ("BHC Act") (12 U.S.C. banking, and is a bank holding company by virtue of § 1841 et seq.), has applied for the Board's approval its ownership of American National Bank, Chicago, under section 4(c)(8) of the BHC Act (12 U.S.C. Illinois, which has total assets of approximately $3.0 § 1843(c)(8)) to acquire voting shares of Walter E. billion. Company, with total assets of approximately Heller and Company, Chicago, Illinois ("Company"), $2.8 billion, is a wholly owned subsidiary of Walter E. a wholly-owned subsidiary of Walter E. Heller Inter- Heller International Corporation and is engaged national Corporation, Chicago, Illinois, and through through 67 offices throughout the United States in the Company to engage, to the same extent and subject to permissible nonbanking activities listed above. the same conditions, in the activities conducted by In every case involving an acquisition by a bank Company. Company engages primarily in the business holding company under section 4 of the Act, the Board of commercial finance, factoring, commercial real considers the effect of the acquisition on the financial estate finance and servicing, and leasing activities, and condition and resources of the applicant. In evaluating also engages to a more limited extent in commercial this application, the Board noted that the primary loan servicing, real estate appraisal and investment capital ratio of Applicant as publicly reported is well advisory activities, and credit-related insurance agency activities. These activities have been determined by the Board to be closely related to banking and thus permissible for banking holding companies. (12 C.F.R. §§ 225.4(a)(1), (3), (5), (6), (9), and (14)). Applicant has also applied for the Board's approval under section 4(c)(8) of the BHC Act to engage in arranging equity 1. See, e.g., BankAmerica Corporation 68 FEDERAL RESERVE BULLETIN 647 (October 1982). financing for certain types of income-producing prop- 2. Walter E. Heller International Corporation, Order dated Seperties. While this activity has not been specified by the tember 12, 1983. Board in Regulation Y as permissible for bank holding 3. 48 Federal Register 39,699 (September 1, 1983). 4. Applicants' asset data are as of March 31, 1983; other banking companies, the Board has previously determined by data are as of June 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 below the Board's capital guidelines for U.S. multina- proposal by Walter E. Heller International Corporational bank holding companies. However, after re- tion, equity financing is closely related to banking.5 viewing all the facts of record relating to the overall The Board previously has found that the arrangefinancial condition of Applicant and its U.S. banking ment of equity financing by bank holding companies operations, the Board has determined that the finan- would enhance competition, provide greater convecial factors relating to this application are consistent nience to investors, increase efficiencies, and lower with approval. In reaching this conclusion, the Board costs. These conclusions appear to be applicable to also took into account the fact that the proposal Applicant's proposal as well. There is no evidence in involved the acquisition of nonbank companies. the record to indicate that Applicant's performance of In making this determination, the Board notes that equity financing would result in any undue concentrathe application raises the general question of whether tion of resources, decreased or unfair competition, the capital standards applicable to domestic bank unsound banking practices, conflicts of interests or holding companies should also be applied to foreign other adverse effects. Based upon these and other banking organizations making acquisitions in the Unit- considerations reflected in the record, the Board has ed States, including the acquisition of nonbanking determined that the balance of public interest factors it companies. This question presents a number of com- is required to consider under section 4(c)(8) of the Act plex issues which the Board believes requires careful is favorable. This determination is conditioned upon consideration and which the Board has under review. Applicant's strictly limiting its equity financing activi- Applicant does not engage in the United States in ties as provided in this Order, and the Board's Order real estate loan servicing, factoring, commercial loan of September 12, 1983. servicing, real estate investment advisory or real es- Applicant has applied to engage in the sale of tate appraisal services, or credit-related insurance property and casualty insurance through a subsidiary agency activities. Applicant does engage in the United of Company, Abacus Insurance Agency, Chicago, States in commercial finance, leasing, and real estate Illinois ('Abacus"). Abacus provides insurance agenlending. In each of these cases, the overlapping market cy services in connection with certain loans extended share is insignificant in comparison with the total by two other wholly-owned subsidiaries of Company, market volume. Moreover, there are a large number of Abacus Real Estate Finance Company and Abacus competitors in each of the overlapping markets, and Mortgage Investment Company. Under Title VI of the the elimination of Applicant or Company as a competi- Garn-St Germain Depository Institutions Act of 1982, tor would not have any significant adverse effects on Abacus is entitled to continue to engage in the sale of competition. Accordingly, the Board has determined credit-related property and casualty insurance in Illithat consummation of the proposal would not result in nois and in certain other states because Abacus and its significant adverse effects on competition in any rele- bank holding company parent, Walter E. Heller Intervant market. national Corporation, obtained the Board's approval The Board notes that affiliation with Applicant will for such activity under the BHC Act prior to May 1, provide financial strength to Heller. Moreover, there 1982. The legislative history of Title VI indicates that is no evidence in the record to indicate that approval of Congress intended the grandfather rights available in this proposal would result in undue concentration of Title VI to accrue to the entity actually conducting the resources, decreased or unfair competition, conflicts relevant insurance agency activity. (S. Rep. No. 536, of interests, unsound banking practices, or other ef- 97th Cong., 2d Sess. 40 (1982)). fects adverse to the public interest. Accordingly, the Abacus, which is the entity that conducted these Board has determined that considerations relating to insurance agency activities on May 1, 1982, will rethe public interest factors under section 4 of the Act main an independent and separate subsidiary of Appliare consistent with approval of this application. cant. Abacus will conduct property and casualty insur- Applicant has also applied under section 4(c)(8) of ance agency activities only from its office in Chicago, the Act to engage in arranging equity financing on Illinois; only to the extent it currently conducts these behalf of institutional investors for commercial and activities; and only in connection with loans extended industrial income-producing realty. Applicant pro- by Abacus Real Estate Finance Company and Abacus poses to engage in this activity in the same manner and Mortgage Investment Company. Moreover, Walter E. subject to the same commitments as in the proposal by Heller International Corporation will not conduct Walter E. Heller International Corporation to engage these credit-related insurance agency activities after in performing this activity that was approved by the Board by Order on September 12, 1983. The Board has determined that, subject to the conditions stated in the 5. Walter E. Heller International Corporation, 69 FEDERAL RE- Board's Order of September 12, 1983, regarding the SERVE BULLETIN 817 (September 12, 1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1984 consummation of the proposal. Applicant does not sidiary, Northeast Bancshare Association, Portland, seek approval for Applicant or its present subsidiaries Maine ("Bancshare"). The Board has found such to engage in these activities through existing offices of activities to be closely related to banking (12 C.F.R. Applicant or its subsidiaries. Accordingly, the Board § 225.4(a)(10)). concludes that, under Title VI of the Garn-St Germain Notice of the application, affording interested per- Depository Institutions Act of 1982, Abacus may sons an opportunity to submit comments was pubcontinue to engage in these insurance agency activities lished in the Federal Register (48 Federal Register after its acquisition by Applicant. 46854 (1983)). The time for filing comments has ex- Based on the foregoing, the Board has determined pired and the Board has considered this application that the applications should be and hereby are ap- and all comments received in light of the public proved. This determination is subject to the limitations interest factors set forth in section 4(c)(8) of the Act. set forth in this Order, the conditions set forth in Applicant, with total consolidated assets of $4.8 section 225.4(c) of Regulation Y, and the Board's billion,1 is the 12th largest commercial banking organiauthority to require such modification or termination zation in New York. Applicant controls six subsidiary of the activities of a holding company or any of its banks in New York that hold 1.8 percent of total subsidiaries as the Board finds necessary to assure deposits in commercial banks in the state (as of compliance with the provisions and purposes of the December 31, 1982). Through Bancshare, Applicant Act and the Board's regulations and orders issued also has indirect control of six bank subsidiaries in thereunder, or to prevent evasion thereof. Maine and is the fifth largest banking organization in The proposed activities shall be commenced not Maine with 11.2 percent of total deposits in commerlater than three months after the effective date of this cial banks in the state. In addition, Applicant has a Order, unless such period is extended for good cause number of subsidiaries engaged in nonbanking activiby the Board or by the Federal Reserve Bank of New ties, including data processing services, equipment York acting pursuant to delegated authority. leasing, mortgage banking, and reinsuring credit life, By order of the Board of Governors, effective accident and health insurance. Through Bancshare, December 20, 1983. Applicant controls two nonbank subsidiaries engaged in providing automated customer service support to affiliated banks, and administering and acting as agent Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Teeters, Rice, and Gramley. Gover- for credit card and check guarantee programs for nor Wallich abstained from the insurance portion of these affiliated and other banks. Applicant's nonbank subapplications. sidiaries account for less than 1 percent of its total consolidated assets. JAMES MCAFEE, Applicant proposes to engage in insurance under- [SEAL] Associate Secretary of the Board writing activities as authorized by the Board's Regulation Y. Section 225.4(a)(10) of Regulation Y authorizes bank holding companies to underwrite credit life insurance and credit accident and health insurance that is Norstar Bancorp Inc., directly related to extensions of credit by the bank Albany, New York holding company system. The regulation requires that an applicant must offer premium rate reductions or equivalent public benefits in order to engage in this Order Approving Application to Expand the Service activity. (12 C.F.R. § 225.4(a)(10) n.lOa.) Applicant Area of a Subsidiary Offering Credit Life, has committed to offer the required rate reduction.2 Health and Accident Insurance Norstar Bancorp, Inc., Albany, New York, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended (12 U.S.C. § 1841 et seq.)(the "Act"), has applied under section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(1) of the Board's Regulation Y (12 C.F.R. § 225.4(b)(1)) for approval of expansion of the service 1. All banking data are as of June 30, 1983, unless otherwise indicated. area of its subsidiary, Norlife Reinsurance Company, 2. In that regard, the Board has recently sought public comment Phoenix, Arizona, to reinsure credit life, health and regarding the proposed elimination of the rate reduction requirement accident insurance sold in connection with extensions from this activity. (48 Federal Register 53125 (Nov. 25, 1983)). Any final action taken by the Board with respect to this rule would be of credit by the bank subsidiaries of Applicant's sub- applicable to Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 There is no evidence in the record indicating that Notice of the application, affording opportunity for consummation of the proposal would result in any interested persons to submit comments, has been duly undue concentration of resources, adverse effects on published (48 Federal Register 51862 (November 14, competition, conflicts of interests, unsound banking 1983)). The time for filing comments has expired, and practices, or any other adverse effects. Moreover, the the application and all comments received have been Board also has determined that the balance of the considered in light of the public interest factors set public interest factors the Board is required to consid- forth in section 4(c)(8) of the Act. er under section 4(c)(8) of the Act is favorable. Applicant, the second largest commercial banking Accordingly, based upon the foregoing and other organization in Pennsylvania, controls three bank subfacts of record, the application is hereby approved. sidiaries with aggregate domestic deposits of $7.0 This determination is subject to the conditions set billion, representing 9.5 percent of the total deposits in forth in section 225.4(c) Regulation Y and to the the state.1 Board's authority to require such modification or In connection with this application, the Secretary termination of the activities of a holding company or has taken into consideration whether the activity to be any of its subsidiaries as the Board finds necessary to performed by Applicant can reasonably be expected to assure compliance with the provisions and purposes of produce benefits to the public that outweigh possible the Act and the Board's regulations and orders issued adverse effects. Having considered the record of this thereunder, or to prevent evasion thereof. application in light of the factors contained in the Act, The proposal shall be effectuated not later than three it is the Secretary's judgment that the balance of the months after the effective date of this Order, unless public interest factors under section 4(c)(8) is favorsuch period is extended for good cause by the Board or able. On the basis of these considerations, the applicaby the Federal Reserve Bank of New York, pursuant tion is approved. This determination is subject to the to delegated authority. conditions set forth in section 225.4(c) of Regulation Y By order of the Board of Governors, effective and to the Board's authority to require such modifica- December 21, 1983. tion or termination of the activities of a bank holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions Voting for this action: Vice Chairman Martin, and Governors Partee, Teeters, Rice, and Gramley. Abstaining from and purposes of the Act and the Board's regulations this action: Governor Wallich. Absent and not voting: Chair- and orders issued thereunder, or to prevent evasion man Volcker. thereof. The activity shall be commenced not later than three JAMES MCAFEE, months after the effective date of this Order, unless [SEAL] Associate Secretary of the Board such period is extended for good cause by the Board or by the Federal Reserve Bank of Cleveland, acting pursuant to delegated authority. By order of the Secretary of the Board, acting PNC Financial Corp., pursuant to delegated authority for the Board of Gov- Pittsburgh, Pennsylvania ernors, effective December 21, 1983. Order Approving Expansion of Data Processing JAMES MCAFEE, Activities [SEAL] Associate Secretary of the Board PNC Financial Corp., Pittsburgh, Pennsylvania, a Security Pacific Corporation, bank holding company within the meaning of the Bank Los Angeles, California Holding Company Act of 1956, as amended (12 U.S.C. § 1841 et seq.), has applied for approval under section Order Approving Application to Engage in 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to expand Certain Futures Commission Merchant and the data processing activities of its indirect nonbank Broker!Dealer Activities subsidiary, L.S. Consulting Corp., doing business as Littlewood, Shain & Company, Wayne, Pennsylvania, Security Pacific Corporation, Los Angeles, California, to include the sale to depository institutions and on- a bank holding company within the meaning of the site installation of a software package called Money Decisions. These activities have been determined by the Board to be closely related to banking (12 C.F.R. § 225.4(a)(8)(H)). 1. Banking data are as of December 31, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • January 1984 Bank Holding Company Act ("BHC Act"), has ap- banks. The Board has determined previously that plied for the Board's approval under section 4(c)(8) of certain FCM activities are closely related to banking: the BHC Act (12 U.S.C. § 1843(c)(8)) and section the execution and clearance of futures contracts in 225.4(b)(2) of the Board's Regulation Y (12 C.F.R. bullion, foreign exchange, U.S. government and agen- § 225.4(b)(2)) to engage de novo through its wholly- cy securities, and money market instruments,4 and owned indirect subsidiary, Security Pacific Mortgage execution and clearance of options on futures con- Services, Inc.1 ("Mortgage Services"), in the follow- tracts in gold bullion and U.S. government securities.5 ing activities: the execution and clearance on behalf of Applicant's proposal to act as an FCM with respect to nonaffiliated persons, of financial futures contracts futures contracts on securities issued or guaranteed by including futures on securities issued or guaranteed by the U.S. government and its agencies and on U.S. and the U.S. government and its agencies and on U.S. and foreign money market instruments is substantially foreign money market instruments; and the execution similar to proposals to engage in these activities previand clearance of options on these financial futures ously approved by the Board. The record indicates contracts on behalf of nonaffiliated persons; acting as a that Applicant, Bank and Mortgage Corporation have broker and dealer on behalf of nonaffiliated persons been active in the cash and futures markets for these with respect to securities issued or guaranteed by the instruments and have the expertise to provide these U.S. government and its agencies; and acting as a services to customers.6 In addition, Mortgage Serbroker with respect to options on securities issued or vices has developed the requisite controls to monitor guaranteed by the U.S. government and its agencies customer credit risk.7 Thus, the Board has determined and with respect to options on U.S. and foreign money that in the manner proposed, these activities are closely related to banking. market instruments. In addition, Mortgage Services proposes to offer incidental investment advice in con- The Board also has determined by order that undernection with its FCM and broker/dealer activities. writing and dealing in certain government securities Notice of the application, affording interested per- and money market instruments is closely related to sons an opportunity to submit comments on the rela- banking. The Board's finding that the activity is closetion of the proposed activities to banking and on the ly related to banking was premised on the facts that balance of the public interest factors regarding the national and State member banks are expressly authoapplication has been duly published (48 Federal Regis- rized by statute to engage in the activity, 12 U.S.C. ter 23910 (May 27, 1983)). The time for filing com- § 24 (Seventh), and that many banks in fact engage in ments has expired and the Board has considered the the activity.8 The Board finds Mortgage Services' application and all comments received in light of the proposal to broker and deal in government securities public interest factors set forth in section 4(c)(8) of the and money market instruments is substantially similar BHC Act.2 to proposals the Board has previously approved. Ac- Applicant is a bank holding company by virtue of its cordingly, the Board concludes that in the manner control of Security Pacific National Bank, Los Ange- proposed, Mortgage Services' proposal to broker and les, California ("Bank"). Bank holds deposits of ap- deal in U.S. government and agency securities and proximately $26.0 billion3 and is the second largest money market instruments is closely related to banking. banking organization in California. Applicant, through its subsidiaries, engages in various permissible non- Mortgage Services proposes to engage in several banking activities. Applicant's financial and manageri- activities not previously determined by the Board to al resources, and in particular, its capitalization are adequate for it to engage in additional nonbanking activities. In order to approve an application submitted pursu- 4. E.g., J.P. Morgan & Company, Incorporated, 68 FEDERAL ant to section 4(c)(8) of the BHC Act, the Board is first RESERVE BULLETIN 514 (1982); Citicorp, 68 FEDERAL RESERVE required to determine that the proposed activities are BULLETIN 776 (1982). 5. E.g., J.P. Morgan & Company, Incorporated, 69 FEDERAL closely related to banking or managing or controlling RESERVE BULLETIN 773 (1983) ("Morgan II"). 6. Indeed, Mortgage Corporation has used financial futures to reduce the risks associated with its mortgage banking activities since such futures were first traded in 1975. 1. Security Pacific Mortgage Services, Inc. is a wholly-owned 7. Pursuant to a formal service agreement, Mortgage Corporation direct subsidiary of Security Pacific Mortgage Corporation ("Mort- will provide certain services to Mortgage Services, including the gage Corporation") a direct nonbank subsidiary of Applicant engaged following; assessing customer credit risk, monitoring customer posiprimarily in mortgage banking activities. Mortgage Corporation is the tions and margin accounts and providing administrative and data third largest issuer of GNMA securities in the United States. processing services. These services will assist Mortgage Services in 2. The Dealer Bank Association submitted a comment in favor of establishing appropriate position limits for customers. the proposal. 8. 41 Federal Register 47083 (1976); 43 Federal Register 5382 3. All banking data are as of June 30, 1983. (1978). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 55 be closely related to banking. Specifically, Mortgage options on U.S. government and agency securities and Services proposes to execute and clear options on of options on money market instruments is a securities futures on U.S. and foreign money market instruments broker under the securities laws. Moreover, the serand to broker options on securities issued or guaran- vices performed by a broker of options on U.S. teed by the U.S. Government and its agencies and Government and agency securities and on money options on money market instruments. market instruments appear to be similar to those of With respect to Applicant's proposal to execute and other brokers. Accordingly, the Board concludes that clear options on futures on U.S. and foreign money Mortgage Services' proposal to broker options on market instruments, the Board has previously deter- U.S. Government and agency securities and options mined that options on futures are functionally and on U.S. and foreign money market instruments is operationally similar to a futures contract for the same closely related to banking. commodity.9 As noted above, the Board has deter- In addition, Mortgage Services proposes to offer mined previously that executing and clearing futures incidental investment advice in connection with its on money market instruments is closely related to FCM activities. Mortgage Services will provide generbanking, and Applicant's prior experience in the cash al research and advice on market conditions and and futures markets for these instruments demon- trading strategies, client account information, reconstrates that Mortgage Services would have the exper- ciliation of trades and communication linkage between tise to provide the proposed options services with customers and the exchange floor. These functions respect to these financial futures contracts. Accord- would be performed for Mortgage Services' customers ingly, the Board concludes that Mortgage Services' only as part of its FCM services and would not be proposal with respect to options on financial futures offered separately or on a fee basis. The Board has contracts is closely related to banking. determined previously that the offering of investment Mortgage Services also proposes to engage in bro- advice is incidental to FCM services.12 Mortgage kerage activities with respect to options on certain Services' proposal to offer advice in connection with physicals; i.e., securities issued or guaranteed by the its FCM activities is substantially similar to and con- U.S. Government and its agencies and U.S. and sistent with other proposals approved by the Board. foreign money market instruments.10 Although an op- Based on the foregoing, the Board concludes that the tion on a physical differs somewhat from a future or an advice Mortgage Services will offer in connection with option on a future, an option on a physical appears to its FCM activities is incidental to such activities. serve the same function as these other instruments In order to approve this application, the Board is since it offers the investor a means to hedge portfolio also required to determine that the performance of the risk. proposed activities by Mortgage Services "can rea- The Board has previously approved applications to sonably be expected to produce benefits to the public, engage in discount securities brokerage for retail cus- such as greater convenience, increased competition, tomers with respect to corporate securities and has or gains in efficiency, that outweigh possible adverse added discount securities brokerage to the list of effects, such as undue concentration of resources, permissible nonbanking activities for bank holding decreased or unfair competition, conflicts of intercompanies generally.11 As a broker for options on ests, or unsound banking practices" (12 U.S.C. physicals, Mortgage Services will act solely as agent § 1843(c)(8)). on behalf of nonaffiliated persons for the purchase and Consummation of Applicant's proposal would prosale of such options. The Board notes that a broker of vide added convenience to those clients of Applicant and its subsidiaries that trade in the cash, forward and futures markets for these instruments. The Board 9. Morgan II, supra. expects that the de novo entry of Mortgage Services 10. Pursuant to an accord between the SEC and the CFTC, options on securities are considered securities and are regulated by the SEC. The substance of this accord was subsequently adopted by Congress, Pub. L. No. 97-444, 96 Stat. 2294 (codified as amended at 7 U.S.C. § 2(a)) (January 11, 1982) and Pub. L. No. 97-303, 96 Stat. 1409 approved. While the Banking Act of 1933, commonly known as the (codified as amended at 15 U.S.C. § 77b) (October 13, 1982). Thus, Glass-Steagall Act, prohibits a commercial bank from engaging in or Mortgage Services will be required to register as a broker/dealer under being affiliated with a firm engaged in certain securities activities, the Securities Exchange Act of 1934 in connection with its brokering Courts have concluded that a commercial bank may act as a securities of options on government securities and of options on money market broker, i.e., execute purchases and sales of securities as agent for instruments. customers. Accordingly, the Board does not believe Mortgage Serv- 11. BankAmerica Corporation, 69 FEDERAL RESERVE BULLETIN ices' proposed brokerage activities with respect to options on securi- 105 (1983). Codified at 12 C.F.R. § 225.4(a)(15). The Board's decision ties issued or guaranteed by the U.S. government and its agencies and was subsequently upheld by the Court of Appeals in Securities money market instruments would violate the prohibitions of the Glass- Industry Association v. Board of Governors, 716 F.2d 92 (2nd Cir. Steagall Act. 1983). The Board notes that the brokerage activities proposed by 12. E.g., Citicorp, 68 FEDERAL RESERVE BULLETIN 776, 778 Mortgage Services are similar to those the Board has previously (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1984 into the market for these services would increase the 5. Mortgage Services has and will maintain a capitallevel of competition among providers of these services ization fully adequate to meet its own commitments already in operation. Accordingly, the Board con- and commitments of its customers, including its cludes that the performance of the proposed activities affiliates. by Mortgage Services can reasonably be expected to produce benefits to the public. In addition, in evaluating Applicant's proposal to act The Board has considered several issues with re- as a broker of options on U.S. Government and spect to possible adverse effects. The Board recog- government-backed securities and options on U.S. nizes that the activities of executing futures contracts and foreign money market instruments, the Board has and options with regard to futures contracts involve taken into account and has relied upon the regulatory various types of financial risks and potential conflicts framework established pursuant to law by the SEC for of interests, and are susceptible to anticompetitive and such trading which embodies the considerations outmanipulative practices. In approving proposals to act lined in points 1-5 above as well as other prudential as an FCM, the Board has relied in the past on action considerations. taken by Congress to address these types of possible The Board has considered also the potential for adverse effects through the passage of the Commodity adverse effects associated with Mortgage Services' Exchange Act13 and the creation of the Commodity proposed broker/dealer activities with regard to U.S. Futures Trading Commission ("CFTC"). The Board government securities and money market instruments. has relied also on the regulations adopted by the CFTC The Board notes that as a nonbank subsidiary of to effectuate the provisions of the Commodity Ex- Applicant, Mortgage Services would be engaging in change Act.14 underwriting and dealing in government securities The Board has placed particular reliance on the without being subject to many of the rules that currentfollowing aspects of Applicant's proposal to act as an ly apply to Bank's conduct of the activity and the FCM. resulting potential for unsound banking practices. Accordingly, the Board expects that Mortgage Ser- 1. Mortgage Services generally will not trade futures vices will conduct the proposed activities subject to for its own account except for purposes of hedging the same rules and prudential limitations under which its positions in securities.15 Bank would conduct such activities.16 Any breach of 2. Mortgage Services shall not, without the prior these restrictions by Mortgage Services would consticonsent of the Board, become a clearing member of tute an unsafe or unsound banking practice that could any futures or securities exchange whose rules be the subject of formal supervisory action by the require the parent corporation of a clearing member Board. to also become a clearing member, unless the re- There is no evidence in the record that consummaquirement is waived with respect to Applicant. tion of the proposal would result in any effects that 3. Mortgage Services has committed that it will, in would be adverse to the public interest. addition to time-stamping orders of all customers to the nearest minute, execute all orders, to the extent consistent with customers' specifications, in strictly chronological sequence, and that it will execute all orders with reasonable promptness with due regard Regarding the use of Futures, Forward and Standby Contracts, to market conditions. 12 C.F.R. § 225.142. Thus, the policy objectives of its trading must be specific enough to outline permissible risk-reducing contract strate- 4. Mortgage Services will not extend credit to cusgies and their relationship to Mortgage Services' other business tomers for the purpose of meeting initial or mainte- activities, and sufficiently detailed to permit internal auditors and nance margin required of customers, subject to the examiners to determine whether operations personnel have acted in accordance with authorized objectives. Operating personnel are exlimited exception of posting margin on behalf of pected to be able to describe and document in detail how the contract customers in advance of prompt reimbursement. positions they have taken contribute to the attainment of Mortgage Services' stated objectives. 16. For example, member banks by statute are permitted to underwrite certain types of public housing and dormitory bonds of states and municipalities, provided that the amount of such securities of a single issuer held by the bank does not exceed ten percent of the 13. 7 U.S.C. §§ 1-24. bank's capital and surplus. (12 U.S.C. § 24 Seventh.) Such securities 14. 17 C.F.R. § 33.4. are designated "Type II" securities in regulations of the Comptroller 15. The Board notes that Mortgage Services may trade for its own of the Currency. (12 C.F.R. § 1.3(a)). Mortgage Services should not account to a limited extent and solely for purposes of hedging its underwrite, deal in, or hold Type II securities by any issuer in portfolio of U.S. Government and government-backed securities. In amounts that would not be permitted if such activities were conducted order to insure that Mortgage Services so limits its trading, however, by Bank and should not sell securities to trust accounts of affiliated and does not engage in speculative transactions, the Board expects banks except as permitted by regulations of the Comptroller of the Mortgage Services to comply with the Board's Policy Statement Currency. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 Based upon a consideration of all the relevant facts, Applicant has also applied for the Board's approval the Board concludes that the balance of the public under section 4(c)(8) of the Act (12 U.S.C. interest factors that the Board is required to consider § 1843(c)(8)) and section 225.4(b)(2) of the Board's under section 4(c)(8) is favorable. Accordingly, the Regulation Y (12 C.F.R. § 225.4(b)(2)) to acquire application is hereby approved. This determination is Company's nonbanking subsidiaries, Firestone Finansubject to the conditions set forth in section 225.4(c) of cial Corp., Newton Centre, Massachusetts ("Fire- Regulation Y and to the Board's authority to require stone"), and Homeowners Mortgage Company, Nashsuch modification or termination of the activities of a ua, New Hampshire ("Homeowners"). Firestone bank holding company or any of its subsidiaries as the engages in commercial lending and leasing activities Board finds necessary to assure compliance with the and Homeowners engages in the activity of originating provisions and purposes of the Act and the Board's 1-4 family residential mortgage loans for sale to invesregulations and orders issued thereunder, or to pre- tors in the secondary market. All of these activities vent evasion thereof. have been determined by the Board to be closely The transaction shall be made not later than three related to banking under section 225.4(a)(1), and (6) of months after the effective date of this Order, unless Regulation Y (12 C.F.R. § 225.4(a)(1) and (6)).1 such period is extended for good cause by the Board or Notice of these applications, affording an opportuniby the Federal Reserve Bank of San Francisco, pursu- ty for interested persons to submit comments has been ant to delegated authority. given in accordance with sections 3 and 4 of the Act By order of the Board of Governors, effective (48 Federal Register 50162 & 50164 (1983)). The time December 8, 1983. for filing comments has expired, and the Board has considered the applications and all comments received Voting for this action: Vice Chairman Martin and Gover- in light of the factors set forth in section 3(c) of the Act nors Wallich, Partee, Rice, and Gramley. Absent and not (12 U.S.C. § 1842(c)) and the considerations specified voting: Chairman Volcker and Governor Teeters. in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). Applicant, with seven bank subsidiaries, has con- WILLIAM W. WILES, solidated assets of $3.2 billion and deposits of $2.6 [SEAL] Secretary of the Board billion.2 It is the 15th largest banking organization in New York State. Upon acquisition of Company, with total assets of $960 million and deposits of $774 million, Applicant would control the largest banking organization in Maine. Orders Issued Under Sections 3 and 4 of Bank Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohib- Holding Company Act its the Board from approving any application by a bank holding company to acquire any bank located outside Key Banks, Inc., of the state in which operations of the bank holding Albany, New York company's subsidiaries are principally conducted, unless such acquisition is "specifically authorized by Order Approving Acquisition of a Bank Holding statute laws of the state in which such bank is located, Company and of Companies Engaged in Commercial by language to that effect and not merely by implica- Lending, Leasing, and Mortgage Banking tion." The statute laws of Maine authorize the acquisi- Key Banks, Inc., Albany, New York, a bank holding company within the meaning of the Bank Holding Company Act of 1956, as amended ("Act") (12 U.S.C. 1. Company does not now hold the shares of Homeowners pursu- § 1841 et seq.), has applied for the Board's approval ant to section 4(c)(8) of the Act, but rather holds them pursrant to the exemption in section 4(c)(1)(C) of the Act for shares of companies that under section 3(a)(3) of the Act (12 U.S.C. perform services for bank holding companies or their banking subsid- § 1842(a)(3)) to acquire all of the shares of Depositors iaries. Under Homeowners' current operating procedures, funds for Corporation, Augusta, Maine ("Company"). As a mortgage loans are provided directly by the investor to whom such loans are sold. Because Homeowners plans to expand its activities to result of the acquisition, Applicant would acquire include the provision of funds and warehousing of loans until they are Company's four subsidiary banks, which are all locat- sold, Depositors will no longer be able to rely on the exemption in ed in Maine: Depositors Trust Company, Augusta; section 4(c)(1)(C) of the Act to hold the shares of Homeowners. After Homeowners modifies its activities, they would continue to be of the Depositors Trust Company of Southern Maine, Porttype permissible under section 225.4(a)(1) of Regulation Y, and, land; Depositors Trust Company of Aroostock, Fort accordingly, Applicant has applied to acquire, and Company has Fairfield; and Depositors Trust Company of Eastern applied to retain, ownership of Homeowners under section 4(c)(8) of the Act. Maine, Bangor. 2. Banking data are as of June 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1984 tion of a banking institution in Maine by a bank holding acquisition of banks in Maine by out-of-state bank company that controls a bank located in another state, holding companies, there are a number of commercial if that other state authorizes the acquisition of a banking organizations, including 18 commercial bankbanking institution in that state by a Maine bank ing organizations in New York with assets of over $1 holding company under terms no more restrictive than billion each, that can be identified as probable future those imposed under Maine law.3 Similarly, New entrants into each of the 20 relevant markets. On the York law authorizes the acquisition of a banking basis of these and other facts of record, the Board institution in New York by a bank holding company concludes that the elimination of Applicant as a probathat controls a bank located in another state, if that ble future entrant into the 20 markets served by other state authorizes the acquisition of a banking Company would not have a substantial anticompetiinstitution in that state by a New York bank holding tive effect in those markets. company.4 The Board has previously concluded that Applicant's seven banking subsidiaries operate 200 the conditions for approval of interstate acquisitions offices in 25 markets throughout New York State. under the New York statute are not more restrictive There are at least six probable future entrants into than those provided for under the Maine statute.5 each of the markets in which Applicant operates, and Based on the foregoing, the Board has determined, as in view of this, and other facts of record, the Board required under section 3(d) of the Act, that the pro- concludes that elimination of Company as a probable posed acquisition conforms with Maine law and is future entrant into the markets served by Applicant expressly authorized by the statute laws of Maine. would not have a substantial anticompetitive effect in Company's banking subsidiaries operate 90 offices those markets. in 20 different markets in Maine. Inasmuch as none of Based on the foregoing and other facts of record, the Applicant's subsidiary banks operates in Maine, the Board concludes that consummation of the proposed proposed transaction would not eliminate existing acquisition of Company's banking subsidiaries would competition in any relevant market. The Board has not have any significant adverse effects on existing or considered the effects of this proposal on probable probable future competition and would not increase future competition and has also examined the proposal the concentration of banking resources in any relevant in light of its proposed guidelines for assessing the area. competitive effects of market-extension mergers or The financial and managerial resources of Appliacquisitions.6 In evaluating the effects of a proposal cant, Company, and their subsidiaries are considered on probable future competition, the Board considers satisfactory and their prospects appear favorable. Afmarket concentration, the number of probable future filiation with Applicant would enable Company's entrants into the market, the size of the bank to be banking subsidiaries to expand the scope and array of acquired, and the attractiveness of the market for their banking services. New and expanded services entry on a de novo or foothold basis absent approval of would include automobile leasing, discount brokerage the acquisition. After consideration of these factors in services, retail store point-of-sale banking, venture the context of the specific facts of this case, the Board capital loans, and credit life, accident and health concludes that consummation of this proposal would insurance. not have any significant adverse effects on probable Applicant has also applied to acquire two nonbankfuture competition in any relevant market. ing subsidiaries of Company, Homeowners and Fire- With respect to the 20 banking markets in which stone. Homeowners currently is a wholly-owned sub- Company operates, the record shows that in 19 of sidiary of one of Company's banking subsidiaries, these markets, either Company is not a market leader Depositors Trust Company. Applicant anticipates, or the market is not attractive for de novo entry. In however, that in the near future, Mortgage Company addition, in view of the fact that Maine permits the of New Hampshire, Londonderry, New Hampshire ("MCNH"), will convert an outstanding debenture that it currently holds into 50 percent of the capital stock of Homeowners. Thus, the application to ac- 3. Me. Rev. Stat. Ann. tit. 9-B, § 1013 (Supp 1980). quire Homeowners contemplates that Homeowners' 4. N.Y. Banking Law § 142-b (McKinney Supp. 1982). activities will be performed as a joint venture with 5. Norstar Bancorp Inc. (Northeast Bancshare Association) (69 FEDERAL RESERVE BULLETIN 306 (1983)). MCNH. 6. "Proposed Policy Statement of the Board of Governors of the MCNH is owned by a group of residential home Federal Reserve System for Assessing Competitive Factors under the Bank Merger Act and the Bank Holding Company Act,"( 47 Federal builders who desire to have an outlet that provides Register 9017 (March 3, 1982)). Although the proposed policy state- permanent financing for the sale of homes that they ment has not been adopted by the Board, the Board is using the policy build in New Hampshire. MCNH is currently an guidelines in its analysis of the effects of a proposal on probable future competition. inactive mortgage company that has no operating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 personnel. The Board has expressed its concern re- section 3 and 4 of the Act, should be and hereby are garding the potential for undue concentration of re- approved for the reasons set forth above. The acquisisources or other adverse effects that result through the tion of Company's banking subsidiaries pursuant to combination in a joint venture of banking and non- section 3 of the Act shall not be made before the banking companies7 and has analyzed this proposal thirtieth calendar day following the effective date of with respect to its probable effects on existing and this Order, and neither the acquisition of Company's potential competition between MCNH, Homeowners banking subsidiaries nor the acquisition of its nonbank and Applicant in the residential mortgage market. subsidiaries shall occur later than three months after MCNH is not an operating company, and Home- the effective date of this Order, unless such period is owners and Applicant do not compete in this line of extended for good cause by the Board or by the commerce in any relevant market. Therefore, forma- Federal Reserve Bank of New York, pursuant to tion of the joint venture and its acquisition by Appli- delegated authority. The approval of Applicant's procant would not eliminate any existing competition in posal to acquire Depositors' nonbank subsidiaries and any relevant market. With respect to the effect of this to engage in commercial lending and leasing, and transaction on potential competition in the relevant mortgage loan origination and sale activities is subject product market, while MCNH can enter the markets to the conditions set forth in section 225.4(c) of served by Homeowners and Applicant separately, it Regulation Y and to the Board's authority to require does not appear to be a likely candidate for such entry modification or termination of the activities of a holdin view of its size and the fact that it has been inactive ing company or any of its subsidiaries as the Board for a number of years. In addition, while Applicant and finds necessary to assure compliance with the provi- Homeowners can enter each others' markets, in view sions and purposes of the Act and Board's regulations of the number of competitors in the residential mort- and orders issued thereunder, or to prevent evasion gage market and the unconcentrated nature of the thereof. market, the Board concludes that the proposed acqui- By order of the Board of Governors, effective sition of Homeowners is not likely to have significant December 27, 1983. adverse effects on probable future competition. Consummation of the joint venture proposal and its Voting for this action: Chairman Volcker and Governors acquisition by Applicant may be expected to result in Wallich, Partee, Rice, and Gramley. Absent and not voting: Governors Martin and Teeters. public benefits. The combination of Applicant's and Company's financial resources and expertise in the JAMES MCAFEE, origination and sale of mortgages, with MCNH's fa- [SEAL] Associate Secretary of the Board miliarity and building contacts in the market area served by Homeowners would make Homeowners a stronger competitor in a highly competitive market. With respect to Applicant's proposed acquisition of Firestone, Applicant and Firestone compete in the Orders Issued Under Section 5 of Bank Service relevant product and geographic market, and thus Corporation Act some existing competition would be eliminated through consummation of this proposal. However, Liberty National Bank and Trust Company of both Applicant and Firestone have relatively small Louisville, market shares and, therefore, the amount of existing Louisville, Kentucky competition that would be eliminated is not significant. There is no evidence in the record to indicate that Order Approving Acquisition of a Bank Service approval of Applicant's proposal to acquire Firestone Corporation and Homeowners would result in undue concentration of resources, conflicts of interest, unsound banking Liberty National Bank and Trust Company of Louispractices or other adverse effects. Accordingly, the ville, ("Bank"), Louisville, Kentucky, a national bank Board has determined that the balance of public inter- chartered by the Comptroller of the Currency, has est factors it must consider under section 4(c)(8) of the applied for the Board's approval under section 5(b) of Act is consistent with approval of the application. the Bank Service Corporation Act, as amended Based on the foregoing and other facts of record, the ("BSCA") (12 U.S.C. § 1861 et seq.), to acquire all of Board has determined that the applications under the shares of a bank service corporation, LNB Life Insurance Company, Louisville, Kentucky ("Company"). Company would engage in the activity of under- 7. See, e.g., Area Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 33 (1983). writing, as reinsurer, credit life and credit accident and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 Federal Reserve Bulletin • January 1984 health insurance written in connection with extensions Board's authority to require such modification or of credit by Bank. termination of the activities of a bank service corpora- The BSCA was amended by Section 709 of the tion as the Board finds necessary to assure compliance Garn-St Germain Act 1 to require prior Board approv- with the provisions and purposes of the Bank Service al of the investment by an insured bank in the capital Corporation Act or to prevent evasions thereof.3 stock of a bank service corporation that performs any By order of the Board of Governors, effective "service" under authority of section 4(f) of the Act. 12 December 19, 1983. U.S.C. § 1864(f). Section 4(f) of the BSCA provides that: Voting for this action: Vice Chairman Martin and Governors Partee, Teeters, Rice, and Gramley. Abstaining from a bank service corporation may perform at any geographic this action: Governor Wallich. Absent and not voting: Chairlocation any service, other than deposit taking, that the man Volcker. Board has determined, by regulation, to be permissible for a bank holding company under section 4(c)(8) of the Bank Holding Company Act.2 JAMES MCAFEE, [SEAL] Associate Secretary of the Board Applicant proposes to engage in insurance underwriting activities to the extent those activities are generally permissible for bank holding companies in the Board's Regulation Y, 12 C.F.R. § 225.4(a)(10). Section 225.4(a)(10) of Regulation Y authorizes bank holding companies to underwrite credit life insurance Michigan National Bank of Detroit, and credit accident and health insurance that is direct- Detroit, Michigan ly related to extensions of credit by the bank holding company system. The regulation requires that an Order Approving Acquisition of a Bank Service applicant must offer premium rate reductions or equiv- Corporation alent public benefit in order to engage in this activity. (12 C.F.R. § 225.4(a)(10) n.lOa). Applicant has com- Michigan National Bank of Detroit, Detroit, Michigan mitted to offer the required rate reductions. ("Bank"), a national bank chartered by the Comptrol- Section 5(c) of the BSCA authorizes the Board, in ler of the Currency, has applied for the Board's acting upon applications to invest in bank service approval under section 5(b) the Bank Service Corporacorporations, to consider the financial and managerial tion Act, as amended ("BSCA") (12 U.S.C. § 1861 resources of the institutions involved and possible et seq.), to acquire all of the shares of a bank service adverse effects, such as undue concentration of re- corporation, MNC Mortgage & Realty Advisors, Inc., sources, unfair or decreased competition, conflicts of Southfield, Michigan ("Company"). Company would interest, or unsafe or unsound banking practices. provide real estate investment advice through offices (12 U.S.C. § 1865(c)). The Board has reviewed the located in Michigan and Florida to investors throughfinancial and managerial resources and future pros- out the United States. pects of Bank and Company, including the financial The BSCA was recently amended by Section 709 of capability of Bank to make a proposed investment the Garn-St Germain Act 1 to require prior Board under this Act and has determined that such factors approval of any investment by an insured bank in the are consistent with approval. Additionally, the Board capital stock of a bank service corporation that perhas found no adverse effects which would warrant forms any "service" under authority of section 4(f) of disapproval of the application. the Act. Section 4(f) of the BSCA 2 provides that: Accordingly, the Board has determined to approve this application. This determination is subject to the 3. In that regard, the Board has recently sought public comment regarding the proposed elimination of the rate reduction requirement from this activity. 48 Federal Register 53125 (Nov. 25, 1983). Any final action taken by the Board with respect to this rule would be applicable to Applicant. 1. Garn-St Germain Depository Institutions Act of 1982, Pub. L. No. 97-320, 96 Stat. 1469 (1982), as amended by, S.J. Res. 271, Pub. L. No. 97-457, 96 Stat. 2508 (1983). ("Garn-St Germain Act"). 2. Under section 4(c)(8) of the Bank Holding Company Act 1. Garn-St Germain Depository Institutions Act of 1982, Pub. L. (12 U.S.C. § 1841 et seq.) ("BHC Act"), a bank holding company No. 97-320, 96 Stat. 1469 (1982), as amended by S.J. Res. 271, Pub. L. may engage in activities determined by the Board to be closely related No. 97-457, 96 Stat. 2508 (1983). to banking. 2. 12 U.S.C. § 1864(f). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 a bank service corporation may perform at any geographic prospects, and possible adverse effects, such as undue location any service, other than deposit taking, that the concentration of resources, unfair or decreased com- Board has determined, by regulation, to be permissible for a petition, conflicts of interest, or unsafe or unsound bank holding company under section 4(c)(8) of the Bank Holding Company Act.3 banking practices. 12 U.S.C. § 1865(c). The Board finds that considerations relating to these factors are Applicant proposes to engage in real estate invest- consistent with approval and that there is no evidence ment advisory activities to the extent those activities of adverse effects. are generally permissible for bank holding companies Accordingly, on the basis of the record, the applicaunder the Board's Regulation Y, 12 C.F.R. tion is approved for the reasons summarized above. § 225.4(a)(5)(iii). By order of the Board of Governors, effective Section 5(c) of the BSC A authorizes the Board, in December 7, 1983. acting upon applications to invest in bank service corporations, to consider the financial and managerial Voting for this action: Chairman Volcker and Governors resources of the institutions involved, their future Wallich, Partee, and Gramley. Absent and not voting: Governors Martin, Teeters, and Rice. 3. Under section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. § 1841 et seq.), a bank holding company may engage in WILLIAM W. WILES, activities determined by the Board to be closely related to banking and a proper incident thereto. [SEAL] Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During December 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) ASB Bank Holding Campany, American State Bank of Pierre, December 30, 1983 Pierre, South Dakota Pierre, South Dakota Barnett Banks of Florida, Inc., Southern Banks of Florida, Inc., December 1, 1983 Jacksonville, Florida High Springs, Florida Citizens National Corporation, Citizens National Bank of Paintsville, December 13, 1983 Paintsville, Kentucky Paintsville, Kentucky D.L. Shares Limited Partnership, D.L. Bancshares, Inc., December 27, 1983 Detroit Lakes, Minnesota Detroit Lakes, Minnesota First National Bank of Detroit Lakes, Detroit, Lakes, Minnesota First Arkansas Bankstock Corporation, Peoples Bank & Trust Company, December 1, 1983 Little Rock, Arkansas Russellville, Arkansas PNC Financial Corp, Marine Bancorp, Inc., December 22, 1983 Pittsburgh, Pennsylvania Erie, Pennsylvania Stillwater Bancorporation, Inc., Cosmopolitan State Bank of Stillwater, December 6, 1983 Stillwater, Minnesota Stillwater, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 1984 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 AApppplliiccaanntt BBaannkk((ss)) Bank date American Bancorporation, Inc., Mannford State Bank, Kansas City December 12, 1983 Sapulpa, Oklahoma Mannford, Oklahoma American Eagle Bancorp., Inc., Cottonwood Bank and Trust St. Louis December 8, 1983 Glen Carbon, Illinois Company, Glen Carbon, Illinois Army National Bancshares, Exchange National Bank of Cot- Kansas City December 12, 1983 Inc., tonwood Falls, Chillicothe, Missouri Cottonwood Falls, Kansas Aurelia FT & S Bankshares, The First Trust & Savings Bank, Chicago December 14, 1983 Inc., Aurelia, Iowa Aurelia, Iowa B.B. Bancshares, Inc., Table Rock Bancshares, Inc., St. Louis November 23, 1983 Shell Knob, Missouri Shell Knob, Missouri Borresen Investments, Inc., State Bank of Darfur, Minneapolis December 14, 1983 Westbrook, Minnesota Darfur, Minnesota The Carroll Bancorp., Farmers State Insurance Agency, Kansas City November 21, 1983 Norfolk, Nebraska Carroll, Nebraska CB&T Financial Corp., Community Bank & Trust, N.A., Richmond December 9, 1983 Fairmont, West Virginia Fairmont, West Virginia Central Banc System, Inc., First Bank of Marine, St. Louis December 12, 1983 Granite City, Illinois Marine, Illinois Central Wisconsin Bankshares, The Union National Bank of Ash- Chicago November 30, 1983 Inc., land, Wausau, Wisconsin Ashland, Wisconsin Charter Financial Corporation, Framingham Trust Company, Boston November 25, 1983 Framingham, Massachusetts Framingham, Massachusetts The Citizens State Bank, Citizens Holding Corporation, Kansas City November 14, 1983 Keenesburg, Colorado Keenesburg, Colorado Citizens Holding Corporation Employees' Stock Ownership Plan, Keenesburg, Colorado City National Bancshares of City National Bank of Weather- Kansas City November 22, 1983 Weatherford, Inc., ford, Weatherford, Oklahoma Weatherford, Oklahoma Clarkel, Inc., Iowa State Bank, Chicago December 9, 1983 Kesley, Iowa Clarksville, Iowa Community Bancshares, Inc., The First Bremen Bank, Cleveland December 7, 1983 McArthur, Ohio Bremen, Ohio East River Bancshares, Inc., Bank of Benton, Dallas December 2, 1983 Benton, Louisiana Benton, Louisiana Elm Bancshares, Inc., Bank of Clarendon Hills, Chicago December 2, 1983 Elmhurst, Illinois Clarendon Hills, Illinois Everly State Bank, Peterson State Bank, Chicago November 21, 1983 Everly, Iowa Peterson, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Farmers and Merchants Ban- Farmers and Merchants State Chicago December 16, 1983 corp., Bank, Winterset, Iowa Winterset, Iowa Farmers and Merchants Ban- The Farmers and Merchants Kansas City November 18, 1983 corp, Inc., Bank of Hill City, Hill City, Kansas Hill City, Kansas Fidelity Kansas Bankshares, Fidelity Bankshares, Inc., Kansas City December 15, 1983 Inc., Topeka, Kansas Topeka, Kansas Fidelity State Bank and Trust Company, Topeka, Kansas First American Corporation, State Bank of Hampshire, Chicago December 12, 1983 Dundee, Illinois Hampshire, Illinois First American Bank of Lake County, Lake Villa, Illinois First Bancshares, Incorporated, Exchange National Bank, Kansas City December 16, 1983 Bartlesville, Oklahoma Tulsa, Oklahoma First Financial Associates, Inc., The First National Bank of Keno- Chicago November 22, 1983 Kenosha, Wisconsin sha, Kenosha, Wisconsin First Railroad & Banking Com- Commercial & Exchange Bank, Atlanta December 9, 1983 pany of Georgia, Bremen, Georgia Augusta, Georgia First Sioux Bancshares, Ltd., The First National Bank of Sioux Chicago December 7, 1983 Sioux Center, Iowa Center, Sioux Center, Iowa First Southern Bank Corp, Englewood Bank of Charlotte Atlanta November 23, 1983 Englewood, Florida County, Englewood, Florida General Educational Fund, Inc., Merchants Bancshares, Inc., Boston December 9, 1983 Burlington, Vermont, Burlington, Vermont Golden Plains Bankshares, Inc., First National Bank, Kansas City November 22, 1983 Phillipsburg, Kansas Phillipsburg, Kansas Gulf Coast Bancshares, Inc., Gulf Coast Bank, Atlanta November 25, 1983 Abbeville, Louisiana Abbeville, Louisiana Hopkins Bankcorp, Inc., The Citizens State Bank, St. Louis December 2, 1983 Wickliffe, Kentucky Wickliffe, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 1984 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Illini Community Bancorp, Inc. First State Bank & Trust Chicago December 12, 1983 Springfield, Illinois Company of Springfield, Springfield, Illinois Mechanicsburg Citizens Bank, Mechanicsburg, Illinois Illini Community Bancgroup, Inc., Springfield, Illinois South Sangamon Banc Shares, Inc., Divernon, Illinois Stonington Banc Shares, Inc., Stonington, Illinois International Bancshares Corpo- International Bank of Commerce, Dallas November 21, 1983 ration, N.A., Laredo, Texas Zapata, Texas International Bancshares, Inc., MBI Bancshares, Inc., Kansas City December 1, 1983 Gladstone, Missouri Kansas City, Missouri Metro Bancshares, Inc., Kansas City, Missouri Kansas Bank System, Inc., Kansas State Bank of Manhattan, Kansas City November 30, 1983 Topeka, Kansas Manhattan, Kansas Kansas City Bancshares, Inc., Citizens Bank of Appleton City, Kansas City November 30, 1983 Kansas City, Missouri Appleton City, Missouri Citizens State Bank of Polk County, Bolivar, Missouri Osceola Bank, Osceola, Missouri Tri-County State Bank of El Dorado Springs, El Dorado Springs, Missouri The Lowry City Bank, Lowry City, Missouri Humansville Bank, Humansville, Missouri Knox City Bancshares, Inc., The Citizens State Bank, Dallas December 14, 1983 Knox City, Texas Knox City, Texas LaFayette Bankshares, Inc., The Bank of LaFayette, Atlanta December 6, 1983 LaFayette, Georgia LaFayette, Georgia Learner Financial Corporation, Bank of Contra Costa, San Francisco November 30, 1983 Orinda, California Walnut Creek, California Scott Valley Bank, Yreka, California Lexington Bancshares, Inc., Lexington State Bank, Dallas December 12, 1983 New Ulm, Texas Lexington, Texas The Marine Corporation, The Fidelity Savings Bank of Chicago November 30, 1983 Milwaukee, Wisconsin Antigo, Antigo, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 Section 3—Continued Reserve Effective Applicant Banks(s) Bank date MBI Bancshares, Inc., The Merchants Bank, Kansas City December 1, 1983 Kansas City, Missouri Kansas City, Missouri The University Bank, Kansas City, Missouri Broadway Bancshares, Inc., Kansas City, Missouri Metropolitan Bancshares, Inc., Kansas City, Missouri TBI Bancshares, Inc., Kansas City, Missouri Merchants Bancshares, Inc., The Merchants Bank, Boston December 9, 1983 Burlington, Vermont Burlington, Vermont Mid-America Bancshares, Inc., Citizens Bank of Norborne, Kansas City December 1, 1983 Pleasant Hill, Missouri Norborne, Missouri NCB Financial Corporation, Tri-County National Bank, Philadelphia December 1, 1983 Williamsport, Pennsylvania Middleburg, Pennsylvania Nodaway Valley Bancshares, The Nodaway Valley Bank, Kansas City December 15, 1983 Inc., Maryville, Missouri Maryville, Missouri North Texas Bancshares, Inc., Hurst National Bank, Dallas November 30, 1983 Fort Worth, Texas Hurst, Texas Northwest Florida Banking Citizens Commercial Bank of Atlanta November 30, 1983 Corporation, Tallahassee, Quincy, Florida Tallahassee, Florida Oak Forest Bancshares, Inc., Oak Forest Bank, Dallas November 25, 1983 Houston, Texas Houston, Texas Doctor's Center International Bank, Houston, Texas Pan American Banks, Inc., The International Bank of Miami, Atlanta December 1, 1983 Miami, Florida N.A., Miami, Florida Peoples Bankshares, Ltd., La Porte City State Bank, Chicago November 30, 1983 Waterloo, Iowa La Porte City, Iowa Plainville Bancshares, Inc., Plainville State Bank, Kansas City November 16, 1983 Plainville, Kansas Plainville, Kansas Planters United Bancshares, The Planters National Bank of Dallas December 2, 1983 Inc., Rosebud, Rosebud, Texas Rosebud, Texas Plaza Bancorporation, Inc., Plaza National Bank, Dallas December 1, 1983 Dallas, Texas Dallas, Texas PSB Financial Corporation, The Peoples State Bank, Dallas November 30, 1983 Many, Louisiana Many, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 1984 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Seacoast Banking Corporation First National Bank and Trust Atlanta November 22, 1983 of Florida, Company, Stuart, Florida Stuart, Florida Seattle Bancorporation, The Bank of Seattle, San Francisco December 1, 1983 Seattle, Washington Seattle, Washington Society Corporation, The First National Bank of Cleveland December 6, 1983 Cleveland, Ohio Salem, Salem, Ohio Southeast Mississippi Corpora- Southeast Mississippi Bank, Atlanta December 2, 1983 tion, Quitman, Mississippi Quitman, Mississippi Steeleville Bancshares, Inc., First National Bank of Steele- St. Louis December 1, 1983 Steeleville, Illinois ville, Steeleville, Illinois T N Bancshares, Inc., Texas National Bank, Dallas December 19, 1983 El Paso, Texas El Paso, Texas United Bankers, Inc., The First National Bank of Com- Dallas November 30, 1983 Waco, Texas merce, Commerce, Texas United Texas Bancshares, Inc., CenTex Bancshares, Inc., Dallas December 1, 1983 Austin, Texas Cranfills Gap, Texas VH Bancorporation, Inc., Grand Marais State Bank, Minneapolis November 30, 1983 Minneapolis, Minnesota Grand Marais, Minnesota The Weatherford Foundation of Bank of Red Bay, Atlanta December 2, 1983 Red Bay, Inc., Red Bay, Alabama Red Bay, Alabama Western Commercial, Continential Bancorp, San Francisco December 6, 1983 Fresno, California Fresno, California Wyoming Bancshares, Inc., First State Bank of Wyoming, Minneapolis November 22, 1983 Wyoming, Minnesota Wyoming, Minnesota Section 4 Nonbanking Reserve Effective Applicant company Bank date First Union Corporation, Dis-Com Securities, Inc., Richmond December 19, 1983 Charlotte, North Carolina Hallandale, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 67 Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date American Republic Bancshares, The First National Bank of Kansas City December 9, 1983 Inc., Belen, Belen, New Mexico Belen, New Mexico Scientific Management Systems, Inc., Belen, New Mexico Deerwood Bancorporation, Inc., First National Bank of Deer- Minneapolis November 23, 1983 Deerwood, Minnesota wood, Deerwood, Minnesota general insurance activities Sharp Bancshares, Inc., Bank of Cave City, St. Louis December 14, 1983 Cave City, Arkansas Cave City, Arkansas to engage de novo, in real estate appraising ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Davenport Bank and Trust Security State Trust and Savings Chicago December 9, 1983 Company, Bank, Davenport, Iowa Bettendorf, Iowa First Virginia Bank-Central, First Virginia Bank of Orange, Richmond December 1, 1983 Charlottesville, Virginia Orange, Virginia First Virginia Bank-Eastern The Peoples Trust Bank, Richmond December 6, 1983 Shore, Exmore, Virginia Onancock, Virginia Farmers State Bank of Irene, Viborg Branch, United National Minneapolis December 9, 1983 Irene, South Dakota Bank, Sioux Falls, South Dakota First Georgia Bank, Capital City Bank, Atlanta November 20, 1983 Atlanta, Georgia Hopeville, Georgia Northwestern Bank of Com- North Shore State Bank, Minneapolis November 29, 1983 merce, Duluth, Minneosta Duluth, Minnesota Northwest Interim Bank, Citizens Commercial Bank of Atlanta November 30, 1983 Tallahassee, Flordia Tallahassee, Tallahassee, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • January 1984 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Independent Insurance Agents of America, Inc. and Charles G. Vick v. Paul A. Volcker, et al., filed March Independent Insurance Agents of Missouri, Inc. v. 1982, U.S.D.C. for the District of Columbia. Board of Governors, filed June 1983, U.S.C. A. for Jolene Gustafson v. Board of Governors, filed March the Eighth Circuit (two cases). 1982, U.S.C.A. for the Fifth Circuit. The Committee for Monetary Reform, et al., v. Board Edwin F. Gordon v. Board of Governors, et al., filed of Governors, filed June 1983, U.S.D.C. for the October 1981, U.S.C.A. for the Eleventh Circuit District of Columbia. (two consolidated cases). Dakota Bankshares, Inc. v. Board of Governors, filed Allen Wolf son v. Board of Governors, filed September May 1983, U.S.C.A. for the Eighth Circuit. 1981, U.S.D.C. for the Middle District of Florida. Jet Courier Services, Inc., et al. v. Federal Reserve Bank Stationers Association, Inc., et al. v. Board of Bank of Atlanta, et al. filed February 1983, Governors, filed July 1981, U.S.D.C. for the North- U.S.C.A. for the Sixth Circuit. ern District of Georgia. Securities Industry Association v. Board of Gover- Public Interest Bounty Hunters v. Board of Governors, et al., filed February 1983, U.S.C.A. for the nors, et al., filed June 1981, U.S.D.C. for the Second Circuit. Northern District of Georgia. Flagship Banks, Inc. v. Board of Governors, filed First Bank & Trust Company v. Board of Governors, January 1983, U.S.D.C. for the District of Colum- filed February 1981, U.S.D.C. for the Eastern Disbia. trict of Kentucky. Flagship Banks, Inc. v. Board of Governors, filed 9 to 5 Organization for Women Office Workers v. October 1982, U.S.D.C. for the District of Colum- Board of Governors, filed December 1980, bia. U.S.D.C. for the District of Massachusetts. Association of Data Processing Service Organiza- Securities Industry Association v. Board of Govertions, Inc., et al. v. Board of Governors, filed nors, et al., filed October 1980, U.S.C.A. for the August 1982, U.S.C.A. for the District of Columbia. District of Columbia. Richter v. Board of Governors, et al. filed May 1982, A. G. Becker, Inc. v. Board of Governors, et al., filed U.S.D.C. for the Northern District of Illinois. October 1980, U.S.C.A. for the District of Colum- Wyoming Bancorporation v. Board of Governors, filed bia. May 1982, U.S.C.A. for the Tenth Circuit. A. G. Becker, Inc. v. Board of Governors, et al., filed First Bancorporation v. Board of Governors, filed August 1980, U.S.C.A. for the District of Columbia. April 1982, U.S.C.A. for the Tenth Circuit. Berkovitz, et al. v. Government of Iran, et al., filed June 1980, U.S.D.C. for the Northern District of California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 A27 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 A3 3 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

A2 Federal Reserve Bulletin • January 1984 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 QI Q2 Q3 July Aug. Sept. Oct. Nov. Reserves of depository institutions 1 Total 11.8 4.1 12.4 4.7 6.0 -3.4 .7 -3.0 -6.9 2 Required 10.8 3.8 12.6 4.6 5.2 -1.5 -1.5' -3.2 -7.8 3 Nonborrowed 13.6 3.5 6.2 1.8 12.4 -6.6 4.2 16.7 -9.1 4 Monetary base2 8.2 9.5 11.1 7.6 5.1 6.4 9.1 7.6 6.1 Concepts of money and liquid assets3 5 Ml 13.1 14.1 12.2 8.9 8.9 2.8 .9 1.9 .7 6 M2 9.3 20.3 10.1 7.8 6.8 6.0 4.8 9.1' 7.8 7 M3 9.5 10.2 8.1 8.3 5.5 8.6 7.4 8.3' 12.0 8 L 8.6 12.5r 9.5'' 10.8' 11.5' 10.8' n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 5.3 14.2 3.0 6.1 6.6 5.7 6.0 3.1 13.8 10 Savings4 13.4 -43.4 -14.8 -6.8 -10.2 -11.2 -8.7 -10.5 -7.9 11 Small-denomination time5 -.5 -48.5 24.1 14.9 24.8 22.4 17.3 23.1 21.7 12 Large-denomination time6 -2.0 -53.9 -24.8 -8.5 -8.8 -2.9 -3.8 21.6 11.2 13 Thrift institutions7 6.2 12.1 16.0 13.7 14.6 13.5 12.5 13.1 11.3 14 Total loans and securities at commercial banks8 6.3 10.7 9.9 8.6 9.7 11.2 4.9 9.9 13.7 Interest rates (levels, percent per annum) 1983 1983 Q1 Q2 Q3 Q4 Aug. Sept. Oct. Short-term rates 1 1 1 1 5 6 7 8 C T F D e r o i e s d m c a e o s m r u a u e l r n y r t f c u i b w a n i l i l d n l p s s d 9 a o ( p 3 w e -m r b ( o o 3 n r - r t m h o , w o s n in e t c h g o ) 1 1 0 n 1 d 12 a ry market)1 8 8 8 8 . . . . 1 3 6 5 4 5 0 1 9 9 8 9 . . . . 3 4 1 5 4 6 4 0 9 9 8 8. . . . 2 4 5 8 1 3 0 0 9 9 8 9 . . . . 5 3 5 5 4 4 6 0 9 9 9 8 . . . . 2 4 0 5 4 5 0 0 9 8 8 8 . . . . 4 9 6 5 8 9 4 0 Long-term rates Bonds 2 1 0 9 S U t . a S te . g a o n v d e l r o n c m al e n g t o 13 v ernment .. 1 9 0 . . 4 8 3 7 1 9 0 . . 2 81 3 1 9 1 . . 6 7 1 9 1 9 1 . . 7 9 7 0 1 9 1 . . 7 9 2 6 1 9 1 . . 5 8 8 2 1 9 1 . . 6 7 6 7 2 2 1 2 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 is a s g u e e s ) ' 6 1 1 3 1 . . 2 8 6 9 1 1 3 1 . . 1 4 6 6 1 13 2 . . 8 3 3 9 1 1 2 3 . . 5 4 1 7 1 13 2 . . 9 2 0 5 1 1 3 2 . . 6 5 0 3 1 13 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(l) 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 NonfinancialS tatistics • January 1984 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 Oct. Nov. Dec. Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 p Dec. 28p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 169,202 167,773' 171,531 168,222 168,623' 169,040 168,837 169,687 173,460 172,988 2 U.S. government securities1 149,300 148,005 151,679 147,910 149,723 149,688 150,402 150,671 153,770 151,498 3 Bought outright 147,045 147,775 151,517 147,910 148,737 149,688 150,402 150,671 153,770 151,498 4 Held under repurchase agreements 2,255 230 162 0 986 0 0 0 0 0 5 Federal agency securities 8,936 8,762 8,673 8,729 8,935 8,659 8,647 8,646 8,645 8,645 6 Bought outright 8,734 8,714 8,646 8,729 8,730 8,659 8,647 8,646 8,645 8,645 7 Held under repurchase agreements 202 48 27 0 205 0 0 0 0 0 8 Acceptances 131 54 34 0 233 0 0 0 0 0 9 Loans 837 912' 748 1,021 813' 877' 438 629 1,059 757 10 Float 1,313 1,592' 2,127 2,012 1,095' 1,736' 1,343 1,583 1,684 3,610 11 Other Federal Reserve assets 8,685 8,448 8,270 8,551 7,824 8,081 8,008 8,159 8,301 8,479 12 Gold stock 11,127 11,123 11,123 11,123 11,123 11,123 11,123 11,123 11,123 11,123 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 162,578 165,317 168,284 165,634 165,646 166,430 166,612 167,713 168,295 169,685 16 Treasury cash holdings 475 481 471 484 483 479 474 473 473 471 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 6,916 2,905 3,591 3,207 2,441 2,881 3,143 3,266 4,108 3,729 18 Foreign 216 238 220 235 239 258 221 197 237 224 19 Other 614 596 594 592 551 612 589 581 620 528 20 Service-related balances and adjustment... 1,185 1,237 1,477 1,347 1,252' 1,237 1,254 1,484 1,504 1,351 21 Other Federal Reserve liabilities and capital 5,689 5,584 5,598 5,550 5,604 5,542 5,464 5,617 5,682 5,654 22 Reserve accounts2 21,059 20,943' 20,822 20,700 21,935' 21,127 20,605 19,883 22,067 20,873 End-of-month figures Wednesday figures 1983 1983 Oct. Nov. Dec. Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 165,267 168,481 172,460 167,698 171,750 168,481 169,694 171,971 174,928 174,318 24 U.S. government securities1 146,0% 149,439 151,942 147,158 151,512 149,439 149,545 150,055 152,379 152,570 25 Bought outright 146,096 149,439 150,558 147,158 151,512 149,439 149,545 150,055 152,379 152,570 26 Held under repurchase agreements 0 0 1,384 0 0 0 0 0 0 0 27 Federal agency securities 8,731 8,647 8,853 8,730 8,730 8,647 8,647 8,645 8,645 8,645 28 Bought outright 8,731 8,647 8,645 8,730 8,730 8,647 8,647 8,645 8,645 8,645 29 Held under repurchase agreements 0 0 208 0 0 0 0 0 0 0 30 Acceptances 0 0 418 0 0 0 0 0 0 0 31 Loans 387 1,059 918 1,534 1,489 1,059 491 2,431 1,132 1,311 32 Float 750 898 1,563 2,434 1,698 898 2,840 2,522 4,232 3,055 33 Other Federal Reserve assets 9,303 8,438 8,766 7,842 8,321 8,438 8,171 8,318 8,540 8,737 34 Gold stock 11,126 11,123 11,121 11,123 11,123 11,123 11,123 11,123 11,123 11,123 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 162,515 166,682 170,005 165,665 166,330 166,682 167,197 168,146 169,033 170,616 38 Treasury cash holdings 478 475 463 483 480 475 473 473 472 462 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 4,841 2,8% 3,661 3,315 2,689 2,8% 4,162 2,839 4,621 3,636 40 Foreign 339 360 191 269 197 360 309 232 287 263 41 Other 749 610 845 572 553 610 579 540 531 597 42 Service-related balances and adjustment... 956 983 1,013 984 986 983 1,004 1,018 1,023 1,018 43 Other Federal Reserve liabilities and capital 5,691 5,432 5,394 5,420 5,440 5,432 5,439 5,432 5,499 5,4% 44 Reserve accounts2 19,227 20,569 20,413 20,517 24,602 20,569 20,057 22,817 22,989 21,756 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. May June July Aug. Sept. Oct. Nov./1 Dec.? 1 Reserve balances with Reserve Banks1 26,163 24,804 22,010 21,808 22,139 21,965 20,585 21,059 20,943 20,822 2 Total vault cash (estimated) 19,538 20,392 19,710 20,098 20,413 20,035 20,798 20,471 20,558 21,210 3 Vault cash at institutions with required reserve balances2 13,577 14,292 13,339 13,593 13,647 13,656 13,927 13,866 14,014 14,692 4 Vault cash equal to required reserves at other institutions 2,178 2,757 2,933 3,014 3,161 3,039 3,404 3,212 3,187 3,211 5 Surplus vault cash at other institutions3 3,783 3,343 3,438 3,491 3,605 3,340 3,467 3,393 3,357 3,307 6 Reserve balances + total vault cash4 45,701 45,196 41,720 41,906 42,552 42,000 41,383 41,530 41,501 42,032 7 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,918 41,853 38,282 38,415 38,947 38,660 37,916 38,137 38,144 38,725 8 Required reserves (estimated) 41,606 41,353 37,833 37,935 38,440 38,214 37,418 37,632 37,615 38,327 9 Excess reserve balances at Reserve Banks4 6 312 500 449 480 507 446 498 505 529 398 10 Total borrowings at Reserve Banks 642 697 902 1,714 1,382 1,573 1,441 837 912 748 11 Seasonal borrowings at Reserve Banks 53 33 98 121 172 198 191 142 119 96 12 Extended credit at Reserve Banks 149 187 514 964 572 490 515 255 6 2 Weekly averages of daily figures for week ending 1983 Oct. 26 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21P Dec. 28p 13 Reserve balances with Reserve Banks' 22,028 20,689 20,081 20,700 21,935 21,127 20,605 19,883 22,067 20,873 14 Total vault cash (estimated) 19,676 20,910 20,949 20,956 19,190 21,036 20,929 20,348 20,357 21,362 15 Vault cash at institutions with required reserve balances2 13,737 14,175 14,014 13,936 13,650 14,409 1144,,335555 14,715 1144,,551166 1144,,997755 16 Vault cash equal to required reserves at other institutions 2,867 3,337 3,341 3,397 2,672 3,298 3,216 3,843 2,862 3,168 17 Surplus vault cash at other institutions3 3,072 3,398 3,594 3,623 2,868 3,329 3,358 1,790 2,979 3,219 18 Reserve balances + total vault cash4 41,704 41,599 41,030 41,656 41,125 42,163 4411,,553344 40,231 4422,,442244 4422,,223355 19 Reserve balances + total vault cash used to satisfy reserve requirements4 5 38,632 38,201 37,436 38,033 38,257 38,834 38,176 38,441 39,445 39,016 20 Required reserves (estimated) 38,178 37,827 36,856 37,388 37,958 38,198 37,671 37,954 38,749 38,540 21 Excess reserve balances at Reserve Banks4'6 454 374 580 645 299 636 505 487 696 476 22 Total borrowings at Reserve Banks 565 440 1,042 1,021 813 877 438 629 1,059 757 23 Seasonal borrowings at Reserve Banks 144 128 123 112 123 123 89 89 100 115 24 Extended credit at Reserve Banks 5 5 3 4 4 13 2 1 1 3 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 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 One day and continuing contract 1 Commercial banks in United States 57,632 62,938 61,398 58,521 5566,,887744rr 6633,,114444 6600,,339977 5577,,227722 5555,,338844 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 24,771 25,933 25,820 25,938 24,783 25,258 24,655 23,800 21,435 3 Nonbank securities dealers 5,476 5,573 5,668 5,294 4,792 5,174 5,479 5,577 5,382 4 All other 26,346 25,643 26,210 25,907 23,464 26,838 26,580 26,514 23,791 All other maturities 5 Commercial banks in United States 5,728 6,768 6,571 6,328 66,,991177 66,,003344 66,,331144 66,,334488 66,,446644 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 8,484 9,505 9,194 9,509 10,040 9,889 10,242 9,835 10,095 7 Nonbank securities dealers 6,433 7,353 7,446 7,427 7,564 6,724 6,740 6,826 6,786 8 All other 9,453 9,932 9,901 10,934 13,546 10,359 10,069 8,795 12,788 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 24,825 25,385 24,614 23,948 23,504 25,143 23,381 22,443 22,921 10 Nonbank securities dealers 4,933 4,857 5,022 5,428 4,286 4,514 4,712 4,634 4,319 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 • January 1984 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 12/31/83 date rate 12/31/83 rate 12/31/83 rate 12/31/83 rate Boston m 12/14/82 9 8'/^ 9 9'/2 10 \m 11 12/14/82 New York 12/15/82 12/15/82 Philadelphia 12/17/82 12/17/82 Cleveland 12/15/82 12/15/82 Richmond 12/15/82 12/15/82 Atlanta 12/14/82 12/14/82 Chicago 12/14/82 12/14/82 St. Louis 12/14/82 12/14/82 Minneapolis 12/14/82 12/14/82 Kansas City .... 12/15/82 12/15/82 Dallas 12/14/82 12/14/82 San Francisco... m 12/14/82 9 m 9!h 10 101/5 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 an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1973 7 Vi m 1978— July 3 7-71/4 71/4 • May 5 13-14 14 1974— Apr. 25 V/2-» 10 7'/4 71/4 8 14 14 3 0 8 Aug. 21 73/4 73/4 Nov. 2 13-14 13 Dec. 9 73/4-8 73/4 Sept. 22 8 8 6 13 13 16 73/4 73/4 Oct. 16 8-8'/2 81/2 Dec. 4 12 12 20 81* 81/2 1975— Jan. 6 714-73/4 73/4 Nov. 1 8^-91/2 9Vi -July 20 111/2-12 UVl 10 7>/4-73/4 71/4 3 91/2 9'/2 23 11 Vl \\Vl 24 71/4 7V4 Aug. 2 11-11V2 11 Feb. 5 7 63/ 6 4 3 -7 /4 1/ 4 6 6 3 3/ / 4 4 1979—J A u u ly g . 2 1 0 7 10 1 - 0 1 01/! 1 1 0 0 l/i 1 3 6 1 1 0 1 V l 1 IO 1 V2 Mar. 10 6'/4-63/4 61/4 20 10'/! 10'/> 27 10-10'/2 10 14 6!/4 6'/4 Sept. 19 10'/!-] 1 11 30 10 10 May 16 6-61/4 6 21 11 11 Oct. 12 91/2-10 91/2 23 6 6 Oct. 8 11-12 12 13 91h 9'/2 10 12 12 Nov. 22 9-9 V'2 9 1976— Jan. 19 5'/2-6 5'/! 26 9 9 Nov. 2 2 2 3 5'/ 5 4 1 - / 5 2 l/i 51/4 1980— Feb. 1 1 5 9 12 1 - 3 1 3 1 1 3 3 Dec. 1 1 4 5 8 81 W /2 - - 9 9 9 m 26 51/4 51/4 May 29 12-13 13 17 81/2 8 V2 30 12 12 1977— Aug. 30 51/4-53/4 5V* June 13 11-12 11 S O e c p t. t . 3 2 2 1 6 51/ 6 4 53 - 5 / 3 4 / 4 5 6 5 3 3 / / 4 4 July 2 2 1 8 9 6 10 1 1 - 1 1 0 1 1 1 1 1 0 0 1978— Jan. 9 6—6l/2 6 Vi S N e o p v t . . 2 1 6 7 1 12 1 1 1 1 2 May 2 1 0 1 6 6 '/2 l/2 - 7 6 7 > /2 Dec. 5 12 1 - 3 1 3 1 1 3 3 12 7 7 In effect Dec. 31, 1983 m 8>/2 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 INSTITUTIONS' Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyy dd pp ee ee pp oo oo ff ss ii dd tt ee ii pp nn oo ttee ss rr iitt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo oo ss ff 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 accounts7,8 7 12/30/76 $0-$28.9 million 3 12/29/83 9>/2 12/30/76 Over $28.9 million 1122 1122//2299//8833 $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 xh years 3 10/6/83 Time and savings2^ 1 Vi years or more 0 10/6/83 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2V2 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 21/2 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97- Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report 320) provides that $2 million of reservable liabilities (transaction accounts, for 1976, table 13. Under provisions of the Monetary Control Act, depository nonpersonal time deposits, and Eurocurrency liabilities) of each depository institutions include commercial banks, mutual savings banks, savings and loan institution be subject to a zero percent reserve requirement. The Board is to adjust associations, credit unions, agencies and branches offoreign banks, and Edge Act the amount of reservable liabilities subject to this zero percent reserve requirecorporations. ment each year for the next succeeding calendar year by 80 percent of the 2. Requirement schedules are graduated, and each deposit interval applies to percentage increase in the total reservable liabilities of all depository institutions, that part of the deposits of each bank. Demand deposits subject to reserve measured on an annual basis as of June 30. No corresponding adjustment is to be requirements were gross demand deposits minus cash items in process of made in the event of a decrease. Effective Dec. 9, 1982, the amount of the collection and demand balances due from domestic banks. exemption was established at $2.1 million. Effective with the reserve maintenance The Federal Reserve Act as amended through 1978 specified different ranges of period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In requirements for reserve city banks and for other banks. Reserve cities were determining the reserve requirements of a depository institution, the exemption designated under a criterion adopted effective Nov. 9, 1972, by which a bank shall apply in the following order: (1) nonpersonal money market deposit accounts having net demand deposits of more than $400 million was considered to have the (MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts character of business of a reserve city bank. The presence of the head office of (NOW accounts less allowable deductions); (3) net other transaction accounts; such a bank constituted designation of that place as a reserve city. Cities in which and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those there were Federal Reserve Banks or branches were also reserve cities. Any with the highest reserve ratio. With respect to NOW accounts and other banks having net demand deposits of $400 million or less were considered to have transaction accounts, the exemption applies only to such accounts that would be the character of business of banks outside of reserve cities and were permitted to subject to a 3 percent reserve requirement. maintain reserves at ratios set for banks not in reserve cities. 6. For nonmember banks and thrift institutions that were not members of the Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, due from domestic banks to their foreign branches and on deposits that foreign 1987. For banks that were members on or after July 1, 1979, but withdrew on or branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends respectively. The Regulation D reserve requirement of borrowings from unrelated on Oct. 24, 1985. For existing member banks the phase-in period is about three banks abroad was also reduced to zero from 4 percent. years, depending on whether their new reserve requirements are greater or less Effective with the reserve computation period beginning Nov. 16, 1978, than the old requirements. All new institutions will have a two-year phase-in domestic deposits of Edge corporations were subject to the same reserve beginning with the date that they open for business, except for those institutions requirements as deposits of member banks. that have total reservable liabilities of $50 million or more. 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as 7. Transaction accounts include all deposits on which the account holder is Christmas and vacation club accounts were subject to the same requirements as permitted to make withdrawals by negotiable or transferable instruments, paysavings deposits. ment orders of withdrawal, and telephone and preauthorized transfers (in excess The average reserve requirement on savings and other time deposits before of three per month) for the purpose of making payments to third persons or others. implementation of the Monetary Control Act had to be at least 3 percent, the However, MMDAs and similar accounts offered by institutions not subject to the minimum specified by law. rules of the Depository Institutions Deregulation Committee (DIDC) that permit 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent no more than six preauthorized, automatic, or other transfers per month of which was imposed on large time deposits of $100,000 or more, obligations of affiliates, no more than three can be checks—are not transaction accounts (such accounts and ineligible acceptances. This supplementary requirement was eliminated with are savings deposits subject to time deposit reserve requirements.) the maintenance period beginning July 24, 1980. 8. The Monetary Control Act of 1980 requires that the amount of transaction Effective with the reserve maintenance period beginning Oct. 25, 1979, a accounts against which the 3 percent reserve requirement applies be modified marginal reserve requirement of 8 percent was added to managed liabilities in annually by 80 percent of the percentage increase in transaction accounts held by excess of a base amount. This marginal requirement was increased to 10 percent all depository institutions determined as of June 30 each year. Effective Dec. 31, beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and 1981, the amount was increased accordingly from $25 million to $26 million; and was eliminated beginning July 24, 1980. Managed liabilities are defined as large effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9 time deposits, Eurodollar borrowings, repurchase agreements against U.S. 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. Nonmembers may maintain reserve balances with a 1979) and the week ending Mar. 12, 1980, whichever was greater. For the Federal Reserve Bank indirectly on a pass-through basis with certain approved computation period beginning May 29, 1980, the base was increased by 7'/2 institutions. percent above the base used to calculate the marginal reserve in the statement week of May 14-21, 1980. In addition, beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and balances declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 DomesticN onfinancial Statistics • January 1984 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions1 Percent per annum Commercial banks mut S ua av l 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 ti s t u a t n io d n s)1 In effect Dec. 31, 1983 In effect Dec. 31, 1983 Type of deposit Percent Effective date Effective date 2 1 N Sa e v g i o n t g ia s b le order of withdrawal accounts 551'//44 12 7 /3 /1 1 / / 7 8 9 0 5 5 V V 2 a 12 7 /3 /1 1 / / 7 8 9 0 3 Negotiable order of withdrawal accounts of $2,500 or more2 1/5/83 1/5/83 4 Money market deposit account2 12/14/82 12/14/82 Time accounts by maturity 5 7-31 days of less than $2,5004 51/4 9/1/82 SV2 9/1/82 6 7-31 days of $2,500 or more2 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 period is required for this account, but depository institutions must reserve the by commercial banks and thrift institutions on various categories of deposits were right to require seven days notice before withdrawals. When the average balance removed. For information regarding previous interest rate ceilings on all catego- is less than $2,500, the account is subject to the maximum ceiling rate of interest ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN ,the for NOW accounts; compliance with the average balance requirement may be Federal Home Loan Bank Board Journal, and the Annual Report of the Federal determined over a period of one month. Depository institutions may not guarantee Deposit Insurance Corporation before November 1983. a rate of interest for this account for a period longer than one month or condition 2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to the payment of a rate on a requirement that the funds remain on deposit for longer minimum deposit requirements. than one month. 3. Effective Dec. 14, 1982, depository institutions are authorized to offer a new 4. Deposits of less than $2,500 issued to governmental units continue to be account with a required initial balance of $2,500 and an average maintenance subject to an interest rate ceiling of 8 percent. balance of $2,500 not subject to interest rate restrictions. No minimum maturity 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 May June July Aug. Sept. Oct. Nov. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 7,668 13,899 17,067 516 1,721 666 1,768 3,184 309 1,435 2 Gross sales 7,331 6,746 8,369 0 0 0 289 214 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 3,389 1,816 3,000 0 0 0 0 500 0 700 Others within 1 year 5 Gross purchases 912 317 312 173 0 156 0 00 0 155 6 Gross sales 0 23 0 0 0 0 0 0 0 0 7 Maturity shift 12,427 13,794 17,295 1,795 1,398 1,162 2,212 902 529 2,828 8 Exchange -18,251 -12,869 -14,164 -1,842 -916 0 -5,344 -753 -636 -2,930 9 Redemptions 0 0 0 0 87 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,138 1,702 1,797 595 0 448811 0 00 0 820 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -8,909 -10,299 -14,524 -41 -1,398 -1,121 -2,212 -902 -256 -1,689 13 Exchange 13,412 10,117 11,804 1,367 916 0 3,130 753 636 1,796 5 to 10 years 14 Gross purchases 703 393 388 326 0 221155 0 00 00 349 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -3,092 -3,495 -2,172 -1,754 0 -41 516 0 -273 -980 17 Exchange 2,970 1,500 2,128 300 0 0 1,300 0 0 700 Over 10 years 18 Gross purchases 811 379 307 108 0 124 0 0 0 115511 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift -426 0 -601 0 0 0 -516 0 0 -159 21 Exchange 1,869 1,253 234 175 0 0 914 0 0 434 All maturities 22 Gross purchases 12,232 16,690 19,870 1,719 1,721 1,642 1,768 3,184 309 2,909 23 Gross sales 7,331 6,769 8,369 0 0 0 289 214 0 0 24 Redemptions 3,389 1,816 3,000 0 87 0 0 500 0 700 Matched transactions 25 Gross sales 674,000 589,312 543,804 43,404 50,086 40,934 45,989 48,193 53,751 56,858 26 Gross purchases 675,496 589,647 543,173 45,001 47,783 43,037 44,480 47,667 53,367 57,991 Repurchase agreements 27 Gross purchases 113,902 79,920 130,774 0 7,891 77,,881166 22,,226633 3377,,221111 1199,,224477 33,,225577 28 Gross sales 113,040 78,733 130,286 3,687 6,730 8,978 0 30,223 28,499 3,257 29 Net change in U.S. government securities 3,869 9,626 8,358 -371 493 2,583 2,234 8,933 -9,326 3,342 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 668 494 0 00 00 0 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 145 108 189 * 17 10 138 5 6 84 Repurchase agreements 33 Gross purchases 28,895 13,320 18,957 0 678 555588 189 2,871 11,,996600 497 34 Gross sales 28,863 13,576 18,638 248 463 773 0 2,510 2,510 497 35 Net change in federal agency obligations 555 130 130 -248 198 -225 51 356 -557 -84 BANKERS ACCEPTANCES 36 Repurchase agreements, net 73 -582 1,285 -704 203 -203 209 913 -1,122 0 37 Total net change in System Open Market Account 4,497 9,175 9,773 -1,322 893 2,155 2,493 10,203 -11,005 3,258 NOTE: Saks, 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 NonfinancialS tatistics • January 1984 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1983 1983 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Oct. Nov. Dec. Consolidated condition statement ASSETS 1 Gold certificate account 11,123 11,123 11,123 11,123 11,123 11,126 11,123 11,121 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 428 433 439 416 409 468 428 415 Loans 4 To depository institutions 1,059 491 2,431 1,132 1,311 387 11,,005599 918 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 00 00 00 00 00 00 00 441188 Federal agency obligations 7 Bought outright 8,647 8,647 8,645 8,645 88,,664455 88,,773311 88,,664477 88,,664455 8 Held under repurchase agreements 0 0 0 0 0 0 0 208 U.S. government securities Bought outright 9 Bills 64,691 64,797 65,307 67,631 67,822 62,823 64,691 65,810 10 63,934 63,934 63,934 63,934 63,934 63,044 63,934 63,934 11 20,814 20,814 20,814 20,814 20,814 20,229 20,814 20,814 12 Total bought outright1 149,439 149,545 150,055 152,379 152,570 146,096 149,439 150,558 13 Held under repurchase agreements 0 0 0 0 0 0 0 1,384 14 Total U.S. government securities 149,439 149,545 150,055 152,379 152,570 146,096 149,439 151,942 15 Total loans and securities 159,145 158,683 161,131 162,156 162,526 155,214 159,145 162,131 16 Cash items in process of collection 8,947 10,141 10,191 11,983 11,877 6,792 8,947 9,708 17 Bank premises 551 552 553 551 551 553 551 547 Other assets 18 Denominated in foreign currencies2 3,867 3,714 3,729 3,730 3,735 3,763 33,,886677 3,688 19 All other3 4,020 3,905 4,036 4,259 4,451 4,987 4,020 4,531 20 Total assets 192,699 193,169 195,820 198,836 199,290 187,521 192,699 196,759 LIABILITIES 21 Federal Reserve notes 153,800 154,318 155,273 156,135 157,702 149,676 153,800 157,097 Deposits ?? To depository institutions 21,581 21,102 23,860 24,047 2222,,881133 20,227 21,581 21,446 73 U.S. Treasury—General account 2,896 4,162 2,839 4,621 3,636 4,841 2,896 3,661 74 Foreign Official accounts 360 309 232 287 263 339 360 191 25 Other 581 538 515 496 558 705 581 825 26 Total deposits 25,418 26,111 27,446 29,451 27,270 26,112 25,418 26,123 77 Deferred availability cash items 8,049 7,301 7,669 7,751 8,822 6,042 8,049 8,145 28 Other liabilities and accrued dividends4 2,369 2,223 2,212 2,271 2,266 2,270 2,369 2,464 29 Total liabilities 189,636 189,953 192,600 195,608 196,060 184,100 189,636 193,829 CAPITAL ACCOUNTS 30 1,458 1,459 1,461 1,464 1,465 1,447 1,458 1,465 31 Surplus 1,359 1,359 1,359 1,359 1,359 1,359 1,359 1,465 32 Other capital accounts 246 398 400 405 406 615 246 0 33 Total liabilities and capital accounts 192,699 193,169 195,820 198,836 199,290 187,521 192,699 196,759 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 111,906 111,880 113,454 113,897 111122,,884466 112,181 111,906 114,619 Federal Reserve note statement 35 Federal Reserve notes outstanding 178,700 179,371 179,869 179,612 179,111 175,946 178,700 178,875 36 LESS: Held by bank5 24,900 25,053 24,596 23,477 21,497 26,270 24,900 21,778 37 Federal Reserve notes, net 153,800 154,318 155,273 156,135 157,614 149,676 153,800 157,097 Collateral held against notes net: 38 Gold certificate account 11,123 11,123 11,123 11,123 11,123 11,126 11,123 11,121 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 138,059 138,577 139,532 140,394 141,873 133,932 138,059 141,358 42 Total collateral 153,800 154,318 155,273 156,135 157,614 149,676 153,800 157,097 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 All 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 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Oct. 31 Nov. 30 Dec. 30 1 Loans—Total 1,059 491 2,431 1,132 1,131 387 1,059 918 2 Within 15 days 1,018 380 2,283 984 1,196 317 1,018 881 3 16 days to 90 days 41 100 137 147 114 34 41 37 4 91 days to 1 year 0 11 11 1 1 36 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 418 6 Within 15 days 0 0 0 0 0 0 0 418 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 149,439 149,545 150,055 152,379 152,570 146,0% 149,439 151,942 10 Within 15 days' 7,873 6,175 6,826 7,390 7,216 5,528 7,873 2,700 11 16 days to 90 days 32,493 33,337 33,223 33,703 35,659 30,%5 32,493 38,247 12 91 days to 1 year 43,553 44,513 44,486 45,766 44,175 45,505 43,553 45,475 13 Over 1 year to 5 years 34,021 34,021 34,021 34,021 34,021 33,093 34,021 34,021 14 Over 5 years to 10 years 13,485 13,485 13,485 13,485 13,485 13,416 13,485 13,485 15 Over 10 years 18,014 18,014 18,014 18,014 18,014 17,589 18,014 18,014 16 Federal agency obligations—Total 8,647 8,647 8,645 8,645 8,645 8,731 8,647 8,853 17 Within 15 days1 120 52 61 189 178 133 120 386 18 16 days to 90 days 671 773 771 643 598 638 671 598 19 91 days to 1 year 1,799 1,770 1,868 1,868 1,937 1,859 1,799 1,937 20 Over 1 year to 5 years 4,331 4,327 4,219 4,219 4,196 4,353 4,331 4,1% 21 Over 5 years to 10 years 1,323 1,323 1,323 1,323 1,333 1,230 1,323 1,333 22 Over 10 years 403 402 403 403 403 518 403 403 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 NonfinancialS tatistics • January 1984 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1983 1979 1980 1981 1982 IItteemm Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS' 1 Total reserves2 30.71 32.46 33.75 36.23 37.15 37.13 37.61 37.80 37.69 37.72 37.62 37.41 2 Nonborrowed reserves 29.24 30.77 33.11 35.60 36.14 36.18 35.98 36.35 36.15 36.28 36.78 36.50 3 Required reserves 30.38 31.94 33.43 35.73 36.68 36.68 37.13 37.29 37.25 37.22 37.12 36.88 4 Monetary base3 139.3 151.1 158.8 171.1 177.3 178.8 180.3 181.1 182.1 183.4 184.fr- 185.5 Not seasonally adjusted 5 Total reserves2 31.26 33.4 34.61 36.96 36.91 36.64 36.79 37.34 37.06 37.39 37.68 37.65 6 Nonborrowed reserves 29.79 31.72 33.98 36.33 35.90 35.69 35.15 35.89 35.52 35.95 37.84 36.79 7 Required reserves 30.93 32.89 34.29 36.46 36.44 36.19 36.31 36.83 36.62 36.89 37.18 37.17 8 Monetary base3 141.5 154.4 161.9 174.4 176.3 177.8 179.6 181.7 181.8 182.9 184.4'' 186.7 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 43.91 40.66 41.92 41.85 38.65 38.28 38.42 38.95 38.66 37.92 38.14 38.14 10 Nonborrowed reserves 42.43 38.97 41.29 41.22 37.64 37.33 36.78 37.50 37.12 36.48 37.29 37.24 11 Required reserves 43.58 40.15 41.60 41.35 38.17 37.83 37.93 38.44 38.21 37.42 37.63 37.62 12 Monetary base3 156.1 162.5 169.7 179.3 178.4 179.8 181.6 183.7 183.8 183.5 184.9'" 187.6 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 December 1981 institutions, and surplus vault cash at depository institutions. and $180 million to $230 million in January 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 percentages with no adjustments to eliminate the effect of changes in Regulation D Apr. 20, 1983, required reserves were reduced an estimated $80 million as a result including changes associated with the implementation of the Monetary Control of 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 Vi 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 Dec. Dec. Dec. Dec. Aug. Sept. Oct. Nov. Seasonally adjusted MEASURES1 1 Ml 389.0 414.1 440.6 478.2 516.7 517.1 517.9 518.2 2 M2 1,497.5 1,630.3 1,794.9 1,959.5 2,136.9 2,145.4 2,161.7' 2,175.7 3 M3 1,758.4 1,936.7 2,167.9 2,377.6 2,528.3 2,543.8' 2,561.4' 2,587.1 4 L2 2,131.8 2,343.6 2,622.0 2,896.8 3,115.6' n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 106.5 116.2 123.2 132.8 141.8 143.0 144.2 145.3 6 Travelers checks3 3.7 4.1 4.5 4.2 4.7 4.7 4.8 4.8 7 Demand deposits 262.0 266.8 236.4 239.8 244.5 243.4 242.9 241.6 8 Other checkable deposits4 17.0 26.9 76.6 101.3 125.8 126.0 126.0 126.5 9 Savings deposits5 423.1 400.7 344.4 359.3 322.1 320.6 318.8 316.4 10 Small-denomination time deposits6 635.9 731.7 828.6 859.1 748.0 757.7 771.0 785.6 11 Large-denomination time deposits7 222.2 258.9 302.6 333.8 311.6 317.7' 319.9' 324.9 Not seasonally adjusted MEASURES' 12 Ml 398.8 424.7 452.1 491.0 511.6 514.1 519.5 523.8 N M2 1,502.1 1,635.0 1,799.6 1,964.5 2,129.2 2,137.2' 2,160.7' 2,175.5 14 M3 1,766.1 1,944.9 2,175.9 2,385.3 2,519.3 2,534.6' 2,560.0 2,586.7 15 L2 2,138.9 2,350.8 2,629.7 2,904.7 3,102.3' n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 108.2 118.3 125.4 135.2 142.1 142.6 143.9 146.1 17 Travelers checks3 3.5 3.9 4.3 4.0 5.1 5.0 4.8 4.6 18 Demand deposits 270.1 275.2 244.0 247.7 241.3 242.1 244.4 244.7 19 Other checkable deposits4 17.0 27.2 78.4 104.0 123.0 124.5 126.4 128.4 20 Overnight RPs and Eurodollars8 21.2 28.4 36.1 44.3 52.1' 53.0 56.5' 55.2 21 Savings deposits5 420.7 398.3 342.1 356.7 321.5 318.2 318.0 313.8 22 Money market deposit accounts n.a. n.a. n.a. 43.2 366.3 366.9 367.4 369.1 23 Small-denomination time deposits6 633.1 728.3 824.1 853.9 746.0 754.8 769.3 782.5 Money market mutual funds 24 General purpose and broker/dealer 33.4 61.4 150.9 182.2' 139.1 137.6 137.8 138.7 25 Institution only 9.5 14.9 36.0 47.(f 38.4 39.1 39.9 40.6 26 Large-denomination time deposits7 226.0 262.4 305.9 336.5 310.3 316.7' 319.5 324.8 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 NonfinancialS tatistics • January 1984 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 11998800'' 11998811'' 11998822'' June July Aug. Sept. Oct. Nov. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 62,757.8 80,858.7 90,914.4 106,799.4 107,884.4 111,538.1 110,700.7 118,407.2 114,466.6 2 Major New York City banks 25,156.1 33,891.9 37,932.9 46,445.4 46,978.0 48,373.3 46,903.7 52,639.9 49,715.8 3 Other banks 37,601.7 46,966.9 52,981.6 60,354.1 60,906.4 63,164.9 63,796.9 65,767.3 64,750.8 4 ATS-NOW accounts3 159.3 743.4 1,036.2 1,342.1 1,390.1 1,679.5 1,495.9 1,392.8 1,447.4 5 Savings deposits4 670.0 672.7 721.4 776.2 659.4 706.3 712.7 643.7 674.9 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 198.7 285.8 324.2 367.5 371.5 385.7 384.7 409.6 398.3 7 Major New York City banks 803.7 1,105.1 1,287.6 1,449.1 1,432.2 1,526.7 1,508.8 1,703.8 1,645.6 8 Other banks 132.2 186.2 211.1 233.4 236.5 245.3 248.6 254.7 251.8 9 ATS-NOW accounts3 9.7 14.0 14.5 14.7 15.0 17.9 15.9 14.9 15.5 10 Savings deposits4 3.6 4.1 4.5 5.6 4.8 5.2 5.3 4.9 5.1 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 63,124.4 81,197.9 91,031.9 113,773.4 105,057.8 115,776.6 111,741.3 114,191.9 110,963.9 12 Major New York City banks 25,243.1 34,032.0 38,001.0 50,643.1 45,601.0 49,788.2 48,276.1 49,910.9 47.508.1 13 Other banks 37,881.3 47,165.9 53,030.9 63,130.4 59,456.8 65,988.3 63,465.2 64,280.9 63,455.8 14 ATS-NOW accounts3 158.0 737.6 1,027.1 1,420.7 1,325.3 1,468.9 1,388.3 1,373.2 1,327.2 15 MMDA5 0 0 0 714.3 603.3 655.5 641.4 700.3 639.1 16 Savings deposits4 669.8 672.9 720.0 779.3 661.6 694.3 688.9 672.9 635.3 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 202.3 286.1 325.0 393.1 357.6 406.7 387.2 391.1 381.7 18 Major New York City banks 814.8 1,114.2 1,295.7 1,563.6 1,383.5 1,621.6 1,574.5 1,595.5 1,553.4 19 Other banks 134.8 186.2 211.5 245.6 227.9 259.8 246.1 246.6 244.0 20 ATS-NOW accounts3 9.7 14.0 14.3 15.7 14.5 16.0 15.0 14.6 14.0 21 MMDA5 0 0 0 3.3 2.8 3.0 2.9 3.2 2.8 22 Savings deposits4 3.6 4.1 4.5 5.6 4.8 5.1 5.2 5.1 4.8 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. Aug. Sept. Oct. Nov. Dec.2 Dec. Aug. Sept. Oct. Nov. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,316.3 1,412.1 1,513.2 1,520.3 1,533.1 1,548.6 1,326.1 1,422.5 1,507.0 1,521.6 1,538.2 1,555.8 2 U.S. Treasury securities 111.0 130.9 174.4 176.9 182.3 186.2 111.4 131.5 172.4 176.3 180.8 185.0 3 Other securities 231.4 239.1 247.8 247.1 246.6 246.8 232.8 240.6 247.0 247.1 246.9 247.4 4 Total loans and leases3 973.9 1,042.0 1,091.0 1,096.3 1,104.2 1,115.6 981.8 1,050.4 1,087.5 1,098.2 1,110.4 1,123.4 5 Commercial and industrial loans 358.0 392.4 402.7 402.6 404.7 407.8 360.1 394.7 400.2 402.2 405.4 409.6 6 Real estate loans 285.7 303.2 322.5 326.2 329.2 332.1 286.8 304.1 322.2 326.9 330.5 333.4 7 Loans to individuals 185.1 191.8 205.5 207.7 211.9 215.4 186.4 193.1 205.7 209.1 213.6 216.7 8 Security loans 21.9 24.7 22.9 23.7 25.2 26.2 22.7 25.5 23.6 23.4 25.0 26.7 9 Loans to nonbank financial institutions 30.2 31.1 30.9 30.8 30.4 29.8 31.2 32.1 30.7 30.9 30.6 30.2 10 Agricultural loans 33.0 36.1 37.2 37.6 37.8 39.3 33.0 36.1 37.6 38.2 38.3 39.6 11 Lease financing receivables 12.7 13.1 12.9 12.9 13.0 13.0 12.7 13.1 12.9 12.9 13.0 13.0 12 All other loans 47.2 49.7 56.5 54.8 52.0 52.1 49.2 51.7 54.6 54.6 54.1 54.1 MEMO: 13 Total loans and securities plus loans sold3,4 1,319.1 1,415.0 1,515.7 1,522.8 1,535.6 1,551.1 1,328.9 1,425.4 1,509.6 1,524.2 1,540.7 1,558.3 14 Total loans plus loans sold3-4 .... 976.7 1,045.0 1,093.5 1,098.9 1,106.7 1,118.1 984.7 1,053.3 1,090.1 1,100.8 1,113.0 1,125.9 15 Total loans sold to affiliates3-4.... 2.8 2.9 2.6 2.6 2.6 2.5 2.8 2.9 2.6 2.6 2.6 2.5 16 Commercial and industrial loans plus loans sold4 360.2 394.6 404.5 404.6 406.7 409.7 362.3 396.9 402.2 404.2 407.4 411.6 17 Commercial and industrial loans sold4 2.2 2.3 2.0 2.0 2.0 1.9 2.2 2.3 2.0 2.0 2.0 1.9 18 Acceptances held 8.9 8.5 8.5 8.3 8.9 8.6 9.8 9.5 8.2 8.3 8.8 8.9 19 Other commercial and industrial loans 349.1 383.8 394.1 394.3 395.8 399.2 350.3 385.2 392.0 393.9 396.6 400.7 20 To U.S. addressees5 334.9 373.5 381.5 381.8 383.1 386.9 334.3 372.7 379.8 381.6 383.9 388.0 21 To non-U.S. addressees 14.2 10.3 12.5 12.5 12.7 12.3 16.1 12.4 12.2 12.3 12.8 12.7 22 Loans to foreign banks 19.0 13.5 14.5 14.3 14.7 14.5 20.0 14.5 14.0 14.7 15.0 14.8 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 • January 1984 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1981 1982 1983 source Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct/ Nov. Total nondeposit funds 1 Seasonally adjusted2 96.3 83.0 73.7 76.7 76.0 80.3 90.9 88.3 76.3 81.6 83.2 80.2 97.2 2 Not seasonally adjusted 98.1 84.6 75.2 77.7 76.8 79.0 90.5 90.0 78.5 85.9 86.0 82.7 99.5 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8 128.0 132.4 135.3 135.4 139.9 145.9 140.7 132.7 130.9 132.2 133.5 141.6 4 Not seasonally adjusted 113.5 129.6 133.9 136.3 136.2 138.5 145.5 142.4 134.8 135.2 135.0 136.0 143.9 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -47.9 -61.6 -61.5 -62.3 -62.4 -57.7 -55.1 -58.9 -51.8 -51.4 -55.8 -46.9 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 3.0 3.0 3.0 3.0 2.8 2.7 2.7 2.6 2.6 2.6 2.5 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -39.5 -49.9 -50.4 -52.7 -52.6 -48.6 -49.1 -50.8 -45.2 -46.2 -48.5 -42.9 8 Gross due from balances 54.9 72.2 79.2 78.9 79.7 80.3 76.3 75.8 77.4 73.6 74.7 76.6 76.4 9 Gross due to balances 32.4 32.6 29.2 28.4 26.8 27.6 27.6 26.6 26.5 28.3 28.3 28.1 33.5 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -8.2 -11.6 -11.0 -9.4 -9.7 -9.0 -5.9 -7.9 -6.5 -5.1 -7.3 -4.0 11 Gross due from balances 48.1 54.9 57.0 55.5 56.1 55.9 55.8 53.9 55.2 53.5 53.5 55.2 53.1 12 Gross due to balances 52.4 46.6 45.3 44.4 46.6 46.1 46.7 47.9 47.2 47.0 48.3 47.8 49.1 Security RP borrowings 13 Seasonally adjusted' 59.0 71.0 72.2 74.3 74.7 79.3 84.6 81.4 75.6 74.2 76.0 78.1 83.9 14 Not seasonally adjusted 59.2 71.1 72.2 73.7 73.9 76.3 82.6 81.5 76.1 76.9 77.2 79.0 84.6 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 11.9 15.7 8.8 12.5 13.5 11.3 13.0 24.0 20.6 16.5 21.7 11.3 16 Not seasonally adjusted 11.1 10.8 16.3 10.2 13.2 14.2 12.5 13.2 21.8 16.4 18.0 24.7 8.5 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 349.6 321.4 307.2 300.0 296.6 287.2 287.0 284.9 284.2 283.2 278.2 280.8 18 Not seasonally adjusted 330.4 353.9 325.4 310.5 300.7 293.0 285.0 283.5 281.3 283.9 283.9 279.5 282.0 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. Mar. Apr. May June July Aug. Sept Oct. Nov. Dec. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,370.3 1,392.2 1,403.8 1,411.9 1,435.1 1,437.4 1,457.0 1,466.1 1,483.0 11,,550022..33 11,,552255..55 2 Loans, excluding interbank 1,000.7 1,001.7 1,005.1 1,007.5 1,025.6 1,029.1 1,043.4 1,049.7 1,060.3 1,075.5 1,095.5 3 Commercial and industrial 356.7 358.0 357.9 356.7 360.1 361.1 363.0 364.0 367.0 372.8 380.8 4 Other 644.0 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 702.7 714.7 5 U.S. Treasury securities 129.0 150.6 155.5 160.9 166.0 165.1 167.5 171.2 176.8 180.4 181.4 6 Other securities 240.5 239.9 243.3 243.5 243.5 243.3 246.1 245.2 245.9 246.4 248.7 7 Cash assets, total 184.4 168.9 170.1 164.5 176.9 168.7 176.9 160.0 164.0 179.0 190.5 8 Currency and coin 23.0 19.9 20.4 20.3 21.3 20.7 21.0 20.8 20.5 22.3 23.4 9 Reserves with Federal Reserve Banks 25.4 20.5 23.9 22.4 18.8 20.6 22.5 15.4 19.7 17.6 18.6 10 Balances with depository institutions . 67.6 67.1 66.1 65.6 69.7 67.1 69.0 66.7 67.1 70.9 75.6 11 Cash items in process of collection ... 68.4 61.5 59.6 56.3 67.1 60.3 64.4 56.9 56.6 69.0 73.0 12 Other assets2 265.3 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 261.9 253.4 13 Total assets/total liabilities and capital ... 1,820.0 1,818.9 1,826.3 1,824.8 1,865.2 1,860.6 1,891.0 1,878.4 1,900.0 1,943.9 1,969.4 14 Deposits 1,361.8 1,374.2 1,368.0 1,370.8 1,402.7 1,396.5 1,420.1 1,408.1 1,419.5 1,459.2 1,482.5 IS Demand 363.9 333.4 329.2 324.5 344.4 334.2 344.7 328.1 331.3 358.1 371.0 16 Savings 296.4 419.2 426.9 440.2 445.3 447.5 449.0 448.8 451.5 458.3 460.7 17 Time 701.5 621.6 611.9 606.1 613.1 614.8 626.4 631.2 636.8 642.8 650.8 18 Borrowings 215.1 211.3 224.0 214.1 221.2 217.5 217.2 217.8 226.8 219.7 216.3 19 Other liabilities 109.2 103.5 102.3 104.7 104.3 105.5 107.6 107.1 106.5 112.6 117.9 20 Residual (assets less liabilities) 133.8 130.0 132.0 135.1 137.0 141.0 146.1 145.4 147.2 152.4 152.8 MEMO: 21 U.S. Treasury note balances included in borrowing 10.7 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 2.8 8.8 22 Number of banks 14,787 14,819 14,823 14,817 14,826 14,785 14,795 14,804 14,800 14,799 14,796 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,429.7 1,451.3 1,460.8 1,467.6 1,491.5 1,494.1 1,515.4 1,525.4 1,541.8 1,563.2 1,587.1 24 Loans, excluding interbank 1,054.8 1,054.5 1,055.7 1,056.4 1,075.2 1,078.8 1,094.9 1,102.5 1,112.2 1,129.2 1,149.7 75 Commercial and industrial 395.3 395.9 393.5 391.7 395.3 397.7 400.6 402.7 405.3 412.0 420.1 76 Other 659.5 658.6 662.2 664.7 679.9 681.2 694.3 699.8 706.8 717.2 729.5 77 U.S. Treasury securities 132.8 155.3 160.2 166.1 171.3 170.3 172.7 176.1 182.0 185.9 186.9 28 Other securities 242.1 241.5 244.9 245.2 245.1 245.0 247.8 246.9 247.7 248.1 250.5 79 Cash assets, total 200.7 185.5 186.3 180.3 193.5 185.2 193.3 174.7 178.4 195.0 205.0 30 Currency and coin 23.0 19.9 20.4 20.3 21.3 20.7 21.1 20.9 20.5 22.3 23.4 31 Reserves with Federal Reserve Banks 26.8 22.0 25.4 23.8 20.0 21.9 24.0 16.6 20.8 19.1 19.7 32 Balances with depository institutions . 81.4 81.0 79.8 78.9 84.0 81.2 82.8 79.3 79.5 83.6 87.9 33 Cash items in process of collection ... 69.4 62.6 60.7 57.3 68.2 61.4 65.4 58.0 57.6 70.0 73.0 34 Other assets2 341.7 325.4 317.8 309.5 318.1 318.7 324.6 320.9 318.8 329.7 320.9 35 Total assets/total liabilities and capital ... 1,972.1 1,962.2 1,964.9 1,957.4 2,003.2 1,998.0 2,033.3 2,021.0 2,039.1 2,088.0 2,113.0 36 Deposits 1,409.7 1,419.5 1,411.0 1,413.1 1,443.8 1,438.1 1,461.4 1,448.9 1,459.0 1,499.4 1,524.7 37 Demand 376.2 345.7 341.1 336.4 356.4 346.4 356.6 340.0 343.2 369.9 383.2 38 Savings 296.7 419.7 427.3 440.7 445.7 448.0 449.5 449.3 452.0 458.8 461.2 39 Time 736.7 654.1 642.6 636.0 641.6 643.8 655.3 659.5 663.8 670.6 680.3 40 Borrowings 278.3 269.9 281.3 269.5 278.2 277.9 280.5 282.6 289.6 282.5 275.1 41 Other liabilities 148.4 141.1 138.6 137.9 142.3 139.1 143.4 142.3 141.5 151.9 158.5 42 Residual (assets less liabilities) 135.7 131.9 133.9 137.0 138.9 142.9 148.0 147.3 149.1 154.2 154.7 MEMO: 43 U.S. Treasury note balances included in borrowing 10.7 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 2.8 8.8 44 Number of banks 15,329 15,376 15,390 15,385 15,396 15,359 15,370 15,382 15,383 15,382 15,380 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 • January 1984 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7p Dec. 14 P Dec. 21P Dec. 28^ 1 Cash items in process of collection 49,878 49,636 53,639 49,222 53,442 47,811 52,076 53,443 57,480 2 Demand deposits due from banks in the United States.. 7,144 7,372 8,013 6,403 8,071 7,914 7,626 8,270 9,448 3 All other cash and due from depository institutions .... 33,431 29,220 31,786 34,728 32,089 32,122 35,366 34,678 35,769 4 Total loans and securities 689,481 689,528 688,889 685,677 693,667 695,256 695,197 695,450 700,602 Securities 5 U.S. Treasury securities 56,304 57,065 58,501 57,373 58,500 60,023 59,209 58,181 57,130 6 Trading account 9,114 9,383 9,701 8,178 9,045 9,855 8,603 8,342 7,686 7 Investment account, by maturity 47,190 47,682 48,800 49,194 49,455 50,168 50,606 49,839 49,443 8 One year or less 14,730 15,139 15,274 15,442 15,469 15,952 15,677 15,398 15,177 9 Over one through five years 29,246 29,318 30,734 30,932 31,244 31,353 31,824 31,248 31,061 10 Over five years 3,213 3,225 2,792 2,820 2,743 2,862 3,105 3,192 3,206 11 Other securities 84,140 83,673 83,614 84,536 83,946 84,723 84,333 85,150 86,224 12 Trading account 6,346 5,799 5,719 6,227 5,675 6,491 5,782 6,164 5,913 13 Investment account 77,794 77,874 77,894 78,309 78,271 78,231 78,551 78,986 80,311 14 U.S. government agencies 15,982 15,885 15,881 16,021 15,905 15,893 16,150 16,205 16,340 15 States and political subdivisions, by maturity 58,146 58,356 58,348 58,618 58,676 58,641 58,702 59,105 60,307 16 One year or less 7,833 7,942 7,863 7,992 7,984 8,133 7,996 7,964 8,140 17 Over one year 50,312 50,415 50,485 50,626 50,692 50,507 50,706 51,140 52,168 18 Other bonds, corporate stocks and securities 3,667 3,633 3,665 3,670 3,690 3,697 3,699 3,676 3,664 Loans 19 Federal funds sold1 45,751 44,083 42,523 40,574 44,815 43,761 44,777 39,568 40,664 20 To commercial banks 33,202 32,288 30,276 27,998 33,587 30,628 31,122 26,686 27,992 21 To nonbank brokers and dealers in securities 9,394 8,391 9,181 9,406 8,369 9,612 10,065 9,202 9,226 22 To others 3,156 3,404 3,067 3,170 2,860 3,522 3,590 3,680 3,446 23 Other loans, gross 516,944 518,428 517,984 516,935 520,150 520,549 520,670 526,330 530,468 24 Commercial and industrial 216,763 218,597 216,678 216,280 217,399 218,256 218,142 219,658 222,209 25 Bankers acceptances and commercial paper 4,854 5,323 4,352 3,893 4,851 4,792 4,642 4,254 4,518 26 All other 211,909 213,274 212,326 212,387 212,548 213,465 213,518 215,404 217,690 27 U.S. addressees 204,653 205,928 205,055 205,124 205,251 206,194 206,447 208,201 210,185 28 Non-U.S. addressees 7,256 7,346 7,271 7,263 7,298 7,270 7,070 7,203 7,505 29 Real estate 139,441 139,261 139,634 139,686 139,903 139,911 140,288 140,303 140,579 30 To individuals for personal expenditures 81,642 81,756 81,980 82,425 82,898 83,448 84,171 85,083 86,358 To financial institutions 31 Commercial banks in the United States 7,895 8,208 8,003 8,143 7,890 7,864 7,707 9,199 8,913 32 Banks in foreign countries 8,890 8,888 8,871 8,371 8,695 8,492 7,619 7,984 8,186 33 Sales finance, personal finance companies, etc 9,655 9,322 9,297 9,178 9,224 9,299 9,322 9,139 9,359 34 Other financial institutions 15,581 15,888 15,438 15,023 15,246 15,505 15,653 15,365 16,125 35 To nonbank brokers and dealers in securities 9,840 9,213 10,387 10,590 11,232 10,685 10,544 11,550 10,494 36 To others for purchasing and carrying securities2 .... 3,332 3,378 3,186 3,195 3,180 3,200 3,204 3,229 3,291 37 To finance agricultural production 7,284 7,221 7,208 7,161 7,153 7,068 7,157 7,207 7,175 38 All other 16,620 16,696 17,300 16,883 17,329 16,817 16,862 17,613 17,778 39 LESS: Unearned income 4,979 5,018 4,997 4,979 4,973 4,973 4,976 4,965 5,038 40 Loan loss reserve 8,680 8,703 8,737 8,763 8,771 8,827 8,816 8,813 8,846 41 Other loans, net 503,285 504,707 504,251 503,193 506,406 506,749 506,878 512,552 516,584 42 Lease financing receivables 10,987 10,992 10,989 11,015 11,044 11,063 11,058 11,104 11,137 43 All other assets 143,452 146,633 142,085 140,556 141,806 144,216 142,645 143,872 140,698 44 Total assets 934,374 933,382 935,401 927,601 940,119 938,383 943,969 946,818 955,135 Deposits 45 Demand deposits 178,266 178,264 182,702 172,774 185,419 177,669 182,850 185,013 194,410 46 Mutual savings banks 707 713 734 563 677 623 764 587 633 47 Individuals, partnerships, and corporations 136,457 136,286 138,397 133,493 141,338 136,614 141,563 141,715 148,312 48 States and political subdivisions 5,522 4,340 4,844 4,699 5,120 4,796 4,863 5,266 5,780 49 U.S. government 1,154 1,4% 2,314 2,026 1,938 1,820 2,237 1,188 2,075 50 Commercial banks in the United States 19,740 18,601 20,147 18,289 20,124 19,234 18,785 19,975 21,589 51 Banks in foreign countries 6,316 5,978 6,921 6,000 6,498 6,058 5,995 5,929 6,461 52 Foreign governments and official institutions 711 751 899 936 1,276 821 760 954 897 53 Certified and officers' checks 7,659 10,100 8,448 6,768 8,448 7,702 7,973 9,398 8,663 54 Time and savings deposits 422,723 424,026 423,360 425,988 426,856 427,672 427,187 428,121 431,708 55 Savings 173,299 173,774 173,776 173,506 174,206 176,017 175,169 174,814 175,668 56 Individuals and nonprofit organizations 152,771 152,961 152,702 152,344 152,904 154,440 153,673 153,483 154,046 57 Partnerships and corporations operated for profit .. 19,283 19,609 19,792 19,938 20,046 20,265 20,222 20,048 20,312 58 Domestic governmental units 1,200 1,164 1,232 1,171 1,216 1,255 1,222 1,202 1,227 59 All other 45 40 49 53 40 57 52 80 84 60 Time 249,423 250,252 249,585 252,482 252,650 251,655 252,018 253,306 256,040 61 Individuals, partnerships, and corporations 222,941 223,842 222,940 225,435 225,671 224,902 224,907 225,790 228,237 62 States and political subdivisions 16,572 16,609 16,648 16,955 16,617 16,368 16,530 16,752 16,830 63 U.S. government 224 211 218 214 214 232 217 215 209 64 Commercial banks in the United States 6,558 6,460 6,598 6,728 7,059 7,119 7,305 77,,337700 77,,668833 65 Foreign governments, official institutions, and banks 3,128 3,129 3,180 3,150 3,089 3,034 33,,005599 33,,118800 33,,008800 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 379 3,725 910 605 515 149 1,938 420 706 67 Treasury tax-and-loan notes 15,032 2,743 1,662 1,340 1,482 2,650 2,219 9,382 5,851 68 All other liabilities for borrowed money3 168,664 171,901 172,658 170,290 171,267 173,736 169,103 163,409 162,106 69 Other liabilities and subordinated notes and debentures . 87,326 90,595 92,032 94,716 92,177 93,810 98,066 98,360 97,676 70 Total liabilities 872,390 871,253 873,325 865,713 877,717 875,686 881,363 884,704 892,457 71 Residual (total assets minus total liabilities)4 61,984 62,129 62,076 61,888 62,402 62,696 62,606 62,114 62,677 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Other than financial institutions and brokers and dealers. for other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Millions of dollars, Wednesday figures 1983 Account Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7p Dec. 14 p Dec. 21 p Dec. 28" 1 Cash items in process of collection 46,875 46,935 50,398 46,021 50,369 45,117 49,034 50,305 54,187 2 Demand deposits due from banks in the United States.. 6,585 6,755 7,381 5,821 7,393 7,236 6,846 7,459 8,569 3 All other cash and due from depository institutions 30,516 26,405 28,915 31,783 29,203 29,381 32,321 31,567 32,579 4 Total loans and securities 639,047 639,121 638,882 635,951 643,450 644,299 644,349 644,256 648,458 Securities 5 U.S. Treasury securities 51,254 51,944 53,424 52,232 53,353 54,785 53,931 52,889 51,701 6 Trading account 9,020 9,288 9,576 8,095 8,953 9,743 8,490 8,240 7,560 7 Investment account, by maturity 42,234 42,656 43,848 44,136 44,400 45,041 45,442 44,649 44,140 8 One year or less 13,025 13,376 13,601 13,674 13,759 14,204 13,940 13,677 13,351 9 Over one through five years 26,266 26,324 27,724 27,911 28,166 28,243 28,634 28,016 27,825 10 Over five years 2,943 2,955 2,522 2,550 2,475 2,594 2,867 2,956 2,964 11 Other securities 76,264 75,820 75,766 76,677 76,110 76,889 76,453 77,284 78,073 12 Trading account 6,167 5,651 5,537 6,077 5,558 6,334 5,604 6,025 5,753 N Investment account 70,097 70,169 70,229 70,600 70,552 70,555 70,849 71,259 72,320 14 U.S. government agencies 14,291 14,192 14,223 14,350 14,246 14,242 14,493 14,556 14,673 15 States and political subdivisions, by maturity 52,501 52,705 52,702 52,945 52,976 52,969 53,005 53,374 54,341 16 One year or less 7,164 7,306 7,228 7,360 7,345 7,500 7,357 7,325 7,403 17 Over one year 45,336 45,399 45,474 45,585 45,631 45,469 45,648 46,049 46,938 18 Other bonds, corporate stocks and securities 3,305 3,272 3,304 3,305 3,329 3,343 3,351 3,329 3,306 Loans 19 Federal funds sold1 40,363 38,874 37,751 36,315 40,237 38,422 39,944 34,824 36,124 20 To commercial banks 28,536 27,808 26,132 24,271 29,452 25,888 27,011 22,800 24,354 21 To nonbank brokers and dealers in securities 8,727 7,684 8,584 8,917 7,978 9,046 9,380 8,382 8,362 72 To others 3,101 3,381 3,035 3,128 2,807 3,487 3,554 3,642 3,408 73 Other loans, gross 483,804 485,174 484,640 483,434 486,461 487,001 486,810 492,029 495,420 24 Commercial and industrial 204,609 206,375 204,480 203,951 205,065 206,051 205,853 207,132 209,274 25 Bankers acceptances and commercial paper 4,650 5,128 4,160 3,684 4,656 4,602 4,413 4,040 4,300 76 All other 199,959 201,247 200,321 200,268 200,410 201,449 201,440 203,092 204,975 77 U.S. addressees 192,817 194,024 193,163 193,120 193,256 194,317 194,517 196,041 197,725 78 Non-U .S. addressees 7,142 7,224 7,157 7,148 7,153 7,132 6,923 7,052 7,250 79 Real estate 130,556 130,411 130,724 130,737 130,930 130,931 131,269 131,269 131,440 30 To individuals for personal expenditures 72,344 72,416 72,614 72,999 73,402 73,892 74,526 75,362 76,409 To financial institutions 31 Commercial banks in the United States 7,408 7,726 7,546 7,639 7,418 7,404 7,188 8,615 8,333 32 Banks in foreign countries 8,750 8,764 8,757 8,260 8,575 8,379 7,501 7,859 8,072 33 Sales finance, personal finance companies, etc 9,438 9,113 9,093 8,962 9,006 9,081 9,102 8,929 9,140 34 Other financial institutions 14,928 15,230 14,798 14,401 14,587 14,861 15,010 14,728 15,483 35 To nonbank brokers and dealers in securities 9,768 9,122 10,287 10,506 11,151 10,592 10,450 11,441 10,386 36 To others for purchasing and carrying securities2 .... 3,073 3,115 2,922 2,926 2,909 2,933 2,937 2,962 3,021 37 To finance agricultural production 7,082 7,022 7,012 6,967 6,958 6,872 6,961 7,014 6,976 38 All other 15,836 15,880 16,407 16,085 16,460 16,004 16,012 16,718 16,887 39 LESS: Unearned income 4,394 4,431 4,410 4,389 4,390 4,390 4,391 4,379 4,442 40 Loan loss reserve 8,243 8,259 8,289 8,318 8,320 8,407 8,399 8,390 8,418 41 Other loans, net 471,167 472,483 471,941 470,727 473,750 474,204 474,020 479,260 482,560 42 Lease financing receivables 10,554 10,558 10,554 10,580 10,606 10,626 10,620 10,663 10,690 43 All other assets 139,322 142,367 137,761 136,206 137,415 139,832 138,179 139,363 136,105 44 Total assets 872,900 872,141 873,892 866,362 878,437 876,492 881,350 883,613 890,588 Deposits 45 Demand deposits 165,521 165,888 169,740 160,011 172,163 164,870 169,474 171,399 180,291 46 Mutual savings banks 675 674 702 534 649 595 648 561 602 47 Individuals, partnerships, and corporations 126,481 126,414 128,262 123,351 130,841 126,370 130,941 131,048 137,322 48 States and political subdivisions 4,935 3,820 4,258 4,145 4,522 4,293 4,289 4,448 5,037 49 U.S. government 1,009 1,380 2,088 1,857 1,757 1,673 1,973 1,044 1,897 50 Commercial banks in the United States 18,078 17,076 18,475 16,722 18,481 17,676 17,196 18,337 19,869 51 Banks in foreign countries 6,269 5,918 6,880 5,952 6,453 6,002 5,949 5,881 6,408 52 Foreign governments and official institutions 710 750 898 935 1,275 809 760 954 845 53 Certified and officers' checks 7,362 9,856 8,178 6,514 8,184 7,452 7,719 9,126 8,310 54 Time and savings deposits 391,342 392,352 391,644 394,295 395,347 396,187 395,635 396,430 399,329 55 Savings 159,969 160,328 160,261 160,116 160,777 162,455 161,667 161,310 161,918 56 Individuals and nonprofit organizations 141,167 141,270 140,980 140,759 141,300 142,731 142,006 141,800 142,190 57 Partnerships and corporations operated for profit .. 17,671 17,965 18,111 18,243 18,342 18,554 18,526 18,363 18,555 58 Domestic governmental units 1,071 1,039 1,106 1,046 1,080 1,098 1,069 1,066 1,089 59 All other 60 54 64 68 55 71 67 80 83 60 Time 231,373 232,025 231,383 234,180 234,570 233,732 233,968 235,121 237,411 61 Individuals, partnerships, and corporations 206,858 207,626 206,751 209,185 209,599 208,937 208,836 209,593 211,782 62 States and political subdivisions 14,845 14,839 14,885 15,161 14,866 14,680 14,857 15,110 15,062 63 U.S. government 202 190 198 194 195 212 198 196 190 64 Commercial banks in the United States 6,341 6,241 6,368 6,490 6,822 6,869 7,017 7,042 7,296 65 Foreign governments, official institutions, and banks 3,128 3,129 3,180 3,150 3,089 3,034 3,059 3,180 3,080 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 379 3,686 813 580 480 149 1,938 302 622 67 Treasury tax-and-loan notes 14,220 2,580 1,494 1,232 1,388 2,490 2,072 8,849 5,521 68 All other liabilities for borrowed money3 158,270 161,055 162,261 159,852 160,742 162,591 158,010 152,636 150,995 69 Other liabilities and subordinated notes and debentures . 85,198 88,453 89,830 92,480 89,932 91,559 95,655 95,875 95,217 70 Total liabilities 814,929 814,014 815,781 808,451 820,053 817,846 822,784 825,491 831,974 71 Residual (total assets minus total liabilities)4 57,970 58,127 58,111 57,911 58,384 58,646 58,566 58,122 58,614 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Other than financial institutions and brokers and dealers. for other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • January 1984 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7p Dec. 14^ Dec. 21P Dec. 28P 1 Cash items in process of collection 14,002 19,123 15,874 13,488 16,566 14,245 16,933 16,935 17,190 2 Demand deposits due from banks in the United States.. 978 1,302 1,383 814 1,335 1,408 1,290 1,265 1,233 3 All other cash and due from depository institutions .... 6,069 3,579 5,099 5,434 5,264 5,805 6,822 5,5% 5,007 4 Total loans and securities1 148,231 146,850 147,867 147,994 150,616 148,742 150,019 149,697 151,043 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 9,440 9,845 10,366 10,530 10,461 10,041 9,904 9,506 9,069 8 One year or less 2,455 2,899 3,083 3,123 2,972 2,667 2,430 2,421 2,416 9 Over one through five years 6,078 6,039 6,847 6,972 7,053 6,854 6,778 6,318 5,894 10 Over five years 907 907 435 435 436 520 695 766 759 11 Other securities2 12 Trading account2 13 Investment account 14,919 15,063 14,998 15,152 15,145 15,254 15,316 15,634 16,211 14 U.S. government agencies 1,476 1,476 1,408 1,401 1,396 1,389 1,389 1,387 1,384 15 States and political subdivisions, by maturity 12,712 12,855 12,864 13,010 13,007 13,131 13,191 13,505 14,086 16 One year or less 1,895 2,004 1,974 2,019 1,940 2,011 2,029 1,985 2,047 17 Over one year 10,817 10,851 10,890 10,990 11,067 11,120 11,162 11,520 12,039 18 Other bonds, corporate stocks and securities 731 732 726 741 742 734 736 741 741 Loans 19 Federal funds sold3 11,907 10,571 10,183 11,390 13,136 11,678 13,195 10,580 11,891 20 To commercial banks 5,361 4,615 3,968 4,912 7,629 5,229 6,458 4,057 5,644 21 To nonbank brokers and dealers in securities 4,821 4,042 4,362 4,603 3,951 4,375 4,618 4,166 4,077 22 To others 1,724 1,914 1,853 1,876 1,557 2,074 2,119 2,357 2,169 23 Other loans, gross 116,052 115,461 116,415 115,038 116,010 115,928 115,787 118,135 118,023 24 Commercial and industrial 57,958 58,687 58,314 57,500 57,644 58,252 58,113 57,968 58,793 25 Bankers' acceptances and commercial paper 1,727 1,815 1,452 1,151 1,563 1,478 1,417 1,171 1,307 26 All other 56,232 56,871 56,862 56,349 56,081 56,774 56,696 56,797 57,486 27 U.S. addressees 54,422 55,081 55,090 54,554 54,288 54,973 54,883 54,939 55,622 28 Non-U.S. addressees 1,810 1,791 1,772 1,795 1,793 1,801 1,812 1,858 1,864 29 Real estate 20,646 20,580 20,622 20,630 20,580 20,496 20,522 20,613 20,412 30 To individuals for personal expenditures 12,693 12,717 12,718 12,791 12,829 12,937 13,040 13,168 13,286 To financial institutions 31 Commercial banks in the United States 1,605 1,618 1,659 1,607 1,589 1,597 1,573 2,180 2,122 32 Banks in foreign countries 2,984 2,753 2,901 2,564 2,831 2,732 2,438 2,765 2,932 33 Sales finance, personal finance companies, etc 3,992 3,673 3,678 3,529 3,625 3,749 3,718 3,772 3,797 34 Other financial institutions 4,230 4,356 4,091 3,979 4,112 4,086 4,220 4,295 4,454 35 To nonbank brokers and dealers in securities 6,089 5,115 6,405 6,669 7,058 6,387 6,412 7,476 6,113 36 To others for purchasing and carrying securities4 .... 668 681 648 624 590 607 628 662 665 37 To finance agricultural production 691 698 701 661 661 615 637 652 611 38 All other 4,495 4,584 4,678 4,481 4,491 4,470 4,486 4,583 4,838 39 LESS: Unearned income 1,459 1,460 1,454 1,456 1,457 1,458 1,460 1,464 1,474 40 Loan loss reserve 2,627 2,629 2,642 2,661 2,679 2,702 2,722 2,693 2,678 41 Other loans, net 111,966 111,372 112,320 110,922 111,874 111,768 111,604 113,978 113,872 42 Lease financing receivables 2,027 2,029 2,046 2,047 2,048 2,035 2,038 2,077 2,067 43 All other assets5 64,354 65,971 63,505 62,775 62,678 64,108 . 62,396 61,279 60,530 44 Total assets 235,661 238,855 235,775 232,553 238,507 236,343 239,498 236,850 237,071 Deposits 45 Demand deposits 45,951 51,064 47,842 44,301 50,404 46,674 49,388 49,528 51,529 46 Mutual savings banks 312 341 358 232 281 263 352 265 278 47 Individuals, partnerships, and corporations 31,986 33,197 31,796 30,532 34,014 31,860 34,109 33,372 35,433 48 States and political subdivisions 734 592 626 606 556 612 598 626 608 49 U.S. government 169 549 573 410 375 372 523 272 571 50 Commercial banks in the United States 4,048 4,978 4,162 4,355 5,103 4,480 4,719 4,567 4,518 51 Banks in foreign countries 5,043 4,678 5,628 4,626 5,135 4,800 4,647 4,579 5,201 52 Foreign governments and official institutions 522 571 686 725 1,055 632 574 770 661 53 Certified and officers' checks 3,137 6,157 4,013 2,814 3,886 3,655 3,866 5,078 4,258 54 Time and savings deposits 73,938 73,844 73,805 74,919 75,133 74,994 74,944 75,071 75,251 55 Savings 27,044 27,222 27,361 27,422 27,416 28,115 28,050 28,237 28,234 56 Individuals and nonprofit organizations 24,084 24,148 24,186 24,235 24,334 24,909 24,870 24,982 25,048 57 Partnerships and corporations operated for profit .. 2,735 2,831 2,918 2,949 2,869 2,963 2,957 3,019 2,945 58 Domestic governmental units 186 205 210 188 175 188 173 171 172 59 All other 39 38 46 50 38 55 50 66 68 60 Time 46,893 46,622 46,444 47,497 47,717 46,878 46,893 46,833 47,017 61 Individuals, partnerships, and corporations 41,292 41,101 40,680 41,679 41,814 41,120 41,018 40,798 41,018 62 States and political subdivisions 2,030 2,047 2,101 2,101 2,037 1,968 2,009 2,115 2,101 63 U.S. government 15 15 19 18 18 18 15 15 14 64 Commercial banks in the United States 2,278 2,209 2,362 2,439 2,626 2,596 2,689 2,620 2,724 65 Foreign governments, official institutions, and banks 1,278 1,251 1,281 1,260 1,221 1,175 1,161 11,,228855 11,,115599 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 300 2,040 350 400 300 1,790 305 67 Treasury tax-and-loan notes 3,674 603 359 336 447 608 636 2,723 1,704 68 All other liabilities for borrowed money6 55,783 54,475 56,099 55,027 56,899 57,454 54,699 51,806 51,444 69 Other liabilities and subordinated notes and debentures . 36,087 36,737 37,218 37,579 35,215 36,313 37,786 37,816 36,597 70 Total liabilities 215,732 218,764 215,674 212,562 218,398 216,043 219,243 216,944 216,830 71 Residual (total assets minus total liabilities)7 19,929 20,092 20,102 19,991 20,109 20,300 20,255 19,906 20,242 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 4. Other than financial institutions and brokers and dealers. other analytic uses. 5. Includes trading account securities. 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 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 1'' Dec. 14" Dec. 21 p Dec. 28p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 662,042 662,753 664,344 663,278 665,934 670,563 670,160 673,344 677,582 2 Total loans (gross) adjusted1 521,598 522,015 522,229 521,369 523,488 525,818 526,618 530,013 534,228 3 Demand deposits adjusted2 107,494 108,532 106,603 103,237 109,914 108,804 109,752 110,407 113,266 4 Time deposits in accounts of $100,000 or more 140,565 140,750 140,098 142,768 142,506 142,010 142,336 143,365 145,214 5 Negotiable CDs 88,424 88,322 87,427 89,542 89,424 88,931 89,378 89,922 91,918 6 Other time deposits 52,142 52,429 52,671 53,226 53,082 53,079 52,958 53,443 53,296 7 Loans sold outright to affiliates3 2,594 2,536 2,559 2,490 2,385 2,432 2,401 2,386 2,364 8 Commercial and industrial 2,001 1,945 1,963 1,904 1,839 1,850 1.831 1,837 1,810 9 Other 592 591 596 586 546 583 570 549 555 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 615,741 616,277 617,903 616,748 619,290 623,804 622,940 625,611 628,632 11 Total loans (gross) adjusted1 488,223 488,513 488,713 487,840 489,827 492,130 492,556 495,438 498,857 12 Demand deposits adjusted2 99,558 100,497 98,778 95,410 101,555 100,404 101,272 101,713 104,337 13 Time deposits in accounts of $100,000 or more 131,721 131,806 131,168 133,727 133,714 133,322 133,528 134,460 136,007 14 Negotiable CDs 83,424 83,279 82,416 84,523 84,634 84,202 84,473 84,896 86,618 15 Other time deposits 48,297 48,528 48,753 49,204 49,079 49,119 49,054 49,565 49,389 16 Loans sold outright to affiliates3 2,544 2,486 2,510 2,434 2,331 2,369 22,,333388 2,323 2,302 17 Commercial and industrial 1,966 1,909 1,928 1,869 1,806 1,807 11,,778888 1,795 1,767 18 Other 578 578 582 565 525 562 549 529 534 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1'4 145,350 144,707 146,336 145,592 145,534 146,076 146,170 147,617 147,429 20 Total loans (gross) adjusted1 120,992 119,799 120,971 119,910 119,928 120,780 120,951 122,478 122,148 21 Demand deposits adjusted2 27,732 26,414 27,233 26,047 28,360 127,577 27,214 27,754 29,249 22 Time deposits in accounts of $100,000 or more 30,978 30,574 30,573 31,608 31,546 31,157 31,297 31,083 31,357 23 Negotiable CDs 18,528 18,143 18,015 19,118 18,990 18,709 18,873 18,522 19,001 24 Other time deposits 12,450 12,431 12,558 12,490 12,556 12,448 12,424 12,561 12,356 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 NonfinancialS tatistics • January 1984 1.30 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. IP Dec. I4P Dec. 21" Dec. 28" 1 Cash and due from depository institutions . 5,998 6,066 6,230 6,552 6,605 6,180 6,370 7,213 6,068 2 Total loans and securities 42,029 43,487 43,173 43,878 43,668 43,048 44,947 45,090 45,609 3 U.S. Treasury securities 4,711 4,664 4,755 4,675 4,594 4,678 4,658 4,634 4,644 4 Other securities 972 957 958 951 966 966 1,020 1,036 1,036 5 Federal funds sold1 2,496 4,291 3,669 3,874 3,457 2,865 3,841 3,971 4,476 6 To commercial banks in United States .. 2,383 4,159 3,552 3,626 3,282 2,707 3,519 3,722 4,195 7 To others 113 132 117 248 175 158 322 249 281 8 Other loans, gross 33,849 33,573 33,791 34,377 34,651 j 34,539 35,428 35,449 35,454 9 Commercial and industrial 18,536 18,742 18,960 18,913 19,313 19,191 19,661 19,611 1199,,446633 10 Bankers acceptances and commercial paper 2,855 2,839 2,899 3,064 3,069 3,121 3,294 3,254 3,256 11 All other 15,681 15,903 16,061 15,848 16,244 16,070 16,367 16,357 16,207 12 U.S. addressees 13,792 14,047 14,216 13,926 14,417 14,243 14,533 14,546 14,377 13 Non-U.S. addressees 1,889 1,857 1,846 1,923 1,827 1,828 1,834 1,811 1,830 14 To financial institutions 11,053 10,672 10,607 11,232 10,5% 10,707 11,010 11,412 11,075 15 Commercial banks in United States... 8,628 8,474 8,473 8,974 8,255 8,394 8,662 9,199 8,820 16 Banks in foreign countries 1,800 1,620 1,542 1,600 1,660 1,642 1,648 1,572 1,584 17 Nonbank financial institutions 626 578 591 657 681 671 700 642 671 18 For purchasing and carrying securities .. 683 590 626 480 948 964 1,132 822 1,106 19 All other 3,577 3,569 3,597 3,753 3,793 3,677 3,626 3,603 33,,881100 20 Other assets (claims on nonrelated parties) 11,905 11,926 12,130 12,359 12,642 12,738 12,673 12,967 12,421 21 Net due from related institutions 12,552 12,558 12,042 12,449 11,769 12,654 11,542 9,769 9,944 22 Total assets 72,484 74,037 73,576 75,238 74,684 74,621 75,532 75,038 74,043 23 Deposits or credit balances2 19,380 19,422 19,257 20,387 20,662 20,625 21,537 22,498 22,485 24 Credit balances 202 154 157 151 143 145 125 165 174 25 Demand deposits 1,775 1,799 1,768 1,874 1,792 1,673 1,939 2,142 11,,993300 26 Individuals, partnerships, and corporations 873 853 786 855 882 820 860 851 914 27 Other 901 946 982 1,019 910 853 1,079 1,292 1,016 28 Total time and savings 17,404 17,468 17,331 18,362 18,728 18,808 19,473 2200,,119911 2200,,338811 29 Individuals, partnerships, and corporations 14,776 14,786 14,584 15,655 15,999 15,935 16,461 17,046 17,217 30 Other 2,627 2,682 2,747 2,707 2,729 2,873 3,012 3,145 3,163 31 Borrowings3 34,666 34,638 34,265 34,025 33,365 33,755 33,382 31,115 30,862 32 Federal funds purchased4 11,102 10,685 11,190 10,063 10,157 10,880 10,453 77,,991199 77,,888877 33 From commercial banks in United States 9,152 8,474 9,065 8,035 8,530 8,974 8,421 5,798 5,826 34 From others 1,951 2,211 2,126 2,028 1,628 1,906 2,032 2,121 2,061 35 Other liabilities for borrowed money.... 23,564 23,953 23,074 23,962 23,208 22,875 22,929 23,196 22,976 36 To commercial banks in United States 19,647 20,275 19,466 19,913 19,390 19,007 19,165 19,475 19,353 37 To others 3,917 3,678 3,608 4,049 3,817 3,868 3,764 3,721 3,622 38 Other liabilities to nonrelated parties 12,799 12,685 13,016 13,404 13,377 13,626 13,550 14,544 13,351 39 Net due to related institutions 5,639 7,292 7,039 7,422 7,280 6,615 7,063 6,881 7,345 40 Total liabilities 72,484 74,037 73,576 75,238 74,684 74,621 75,532 75,038 74,043 MEMO 41 Total loans (gross) and securities adjusted* 31,018 30,854 31,147 31,277 32,130 31,947 32,766 32,169 32,595 42 Total loans (gross) adjusted5 25,334 25,232 25,434 25,651 26,570 26,303 27,088 26,499 26,915 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 152.7 157.7 162.8R 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 All 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 NonfinancialS tatistics • January 1984 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1983 11997788 11997799'' 11998800 11998811 11998822 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. DDeecc.. DDeecc..22 June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted unless noted otherwise) 11 AAllll iissssuueerrss 83,438 112,803 124,374 165,455 166,208 170,716 172,199 174,669 176,775 175,924 180,206 FFiinnaanncciiaall ccoommppaanniieess33 DDeeaalleerr--ppllaacceedd ppaappeerr44 22 TToottaall 12,181 17,359 19,599 29,904 34,067 39,850 39,027 40,749 39,963 38,128' 40,890 33 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 3,521 2,784 3,561 6,045 2,516 2,192 2,367 2,353 2,303 2,195 2,341 DDiirreeccttllyy ppllaacceedd ppaappeerr55 44 TToottaall 51,647 64,757 67,854 81,715 84,183 87,749 89,585 90,628 91,600 92,819 93,820 55 BBaannkk--rreellaatteedd ((nnoott sseeaassoonnaallllyy aaddjjuusstteedd)) 12,314 17,598 22,382 26,914 32,034 33,420 33,613 35,085 34,856 34,622 35,001 66 NNoonnffiinnaanncciiaall ccoommppaanniieess66 19,610 30,687 36,921 53,836 47,958 43,117 43,587 43,292 45,212 44,977 45,496 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 70,907 72,710 73,977 73,569' 72,902' Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 9,147 9,008 8,498 9,205 9,501 9 Own bills 7,653 8,327 8,963 9,743 9,471 7,998 8,231 7,466 7,986 8,212 10 Bills bought 927 1,538 1,601 1,115 1,439 1,148 777 1,033 1,219 1,289 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 203 0 209 0 0 12 Foreign correspondents 664 1,382 1,791 1,442 949 792 670 717 622 483 n.a. 13 Others 24,456 33,370 41,614 56,731 66,204 60,968 63,032 65,961 64,942 62,917 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 14,324 15,122 14,487 14,653' 14,829' 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 16,356 16,286 16,476 16,215 16,036 16 All other 17,541 25,411 30,257 39,060 45,531 40,226 41,301 43,514 43,201 42,037 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 Rate Month Average Month rate -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 16.50 Apr May 16.50 May -Feb. 18 17.00 June 16.50 23 16.50 July 16.26 July July 20 16.00 Aug 14.39 Aug 29 15.50 Sept 13.50 Sept Aug. 2 15.00 1983—Jan. 11 11.00 Oct 12.52 Oct 16 14.50 Feb. 28 10.50 11.85 Nov 18 14.00 Aug. 8 11.00 Dec 11.50 Dec 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, November 7-11, 1983 Size of loan (in thousands of dollars) All Item sizes 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 26,906,178 679,407 460,408 554,091 2,042,372 726,993 22,442,908 2 Number of loans 130,514 91,718 13,836 8,922 11,597 1,077 3,364 3 Weighted-average maturity (months) 1.3 3.6 3.7 4.0 4.9 3.1 .8 4 With fixed rates .7 3.2 3.6 3.9 3.8 1.5 .4 5 With floating rates 2.5 4.5 3.8 4.1 5.6 4.8 1.7 6 Weighted-average interest rate (percent per annum).. 10.95 13.91 13.78 13.23 12.34 11.82 10.59 7 Interquartile range1 10.27-11.18 12.68-14.85 12.55-14.56 12.36-13.80 11.46-12.96 11.32-12.55 10.24-10.75 8 With fixed rates 10.80 14.26 13.79 13.70 12.63 11.24 10.54 9 With floating rates 11.20 13.28 13.78 12.93 12.21 12.14 10.68 Percentage of amount of loans 10 With floating rate 36.7 35.7 60.0 61.3 69.2 64.8 31.8 11 Made under commitment 68.4 31.3 30.5 37.2 43.8 65.2 73.4 12 With no stated maturity 12.5 15.7 27.1 26.7 22.7 38.5 10.0 13 With one-day maturity 17.4 2.1 .0 .2 .5 3.3 20.7 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 2,834,473 367,008 426,052 168,157 1,873,256 15 Number of loans 19,150 16,303 1,851 246 750 16 Weighted-average maturity (months) 50.8 39.0 40.7 48.7 55.5 17 With fixed rates 50.7 42.0 45.9 55.0 57.1 18 With floating rates 50.8 36.3 36.6 47.6 55.2 19 Weighted-average interest rate (percent per annum) .. 12.94 14.03 17.89 12.03 11.68 20 Interquartile range1 11.38-12.68 12.68-14.65 12.40-28.42 11.46-12.68 10.92-12.40 21 With fixed rates 15.19 14.95 24.52 11.51 10.68 22 With floating rates 12.13 13.21 12.60 12.12 11.93 Percentage of amount of loans 23 With floating rate 73.6 52.9 55.6 85.8 80.6 24 Made under commitment 59.1 42.7 45.3 66.6 64.8 1-24 25-49 50-99 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 25 Amount of loans (thousands of dollars) 990,925 150,071 110,531 83,576 178,568 468,178 26 Number of loans 23,236 17,606 3,315 1,303 806 206 27 Weighted-average maturity (months) 8.5 6.9 7.1 9.6 13.2 7.4 28 With fixed rates 9.0 8.5 7.7 8.2 13.5 9.3 29 With floating rates 8.2 5.4 6.3 12.3 13.2 6.6 30 Weighted-average interest rate (percent per annum) .. 13.25 14.16 14.58 14.19 13.02 12.57 31 Interquartile range1 12.13-13.88 13.43-14.93 13.42-15.56 13.31-14.89 12.40-13.30 12.12-13.24 32 With fixed rates 13.56 13.98 14.94 14.73 12.90 12.43 33 With floating rates 13.09 14.32 14.16 13.32 13.04 12.63 Percentage of amount of loans 34 With floating rate 65.1 52.7 46.5 38.0 85.7 70.5 35 Secured by real estate 92.4 85.3 98.0 95.8 95.9 91.4 36 Made under commitment 64.4 75.1 59.7 32.6 74.7 63.9 37 With no stated maturity 4.0 2.7 2.9 6.8 6.4 3.2 38 With one-day maturity .0 .0 .0 .0 .0 .0 Type of construction 39 1- to 4-family 33.9 47.5 67.3 76.1 28.5 16.1 40 Multifamily 15.9 3.5 4.5 9.9 22.4 21.1 41 Nonresidential 50.3 49.0 28.3 14.0 49.1 62.8 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) 1,467,055 137,726 177,981 171,295 193,955 250,340 535,758 43 Number of loans 58,634 36,687 11,551 5,309 2,774 1,738 845 44 Weighted-average maturity (months) 6.8 6.4 7.6 6.6 7.5 11.9 4.1 45 Weighted-average interest rate (percent per annum) .. 13.64 14.30 14.25 13.92 13.94 13.82 12.98 46 Interquartile range1 12.68-14.50 13.88-14.74 13.42-14.71 13.19-14.49 13.42-14.51 13.80-14.45 11.59-14.23 By purpose of loan 47 Feeder livestock 14.00 1144..2222 13.99 14.20 14.12 13.45 13.92 48 Other livestock 13.87 14.30 15.13 14.14 13.83 (*) 13.37 49 Other current operating expenses 13.37 14.26 14.11 14.06 13.78 13.72 11.54 50 Farm machinery and equipment 13.91 14.50 14.09 13.51 (*) (*) (*) 51 Other 12.93 14.32 14.08 13.32 13.78 13.13 12.54 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 DomesticN onfinancialS tatistics • January 1984 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 11998811 11998822 11998833 Sept. Oct. Nov. Dec. Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 MONEY MARKET RATES 1 Federal funds12 16.38 12.26 9.09 9.45 9.48 9.34 9.47 9.27 9.49 9.52 9.62 8.96 Commercial paper3'4 2 1-month 15.69 11.83 8.87 9.19 9.03 9.10 9.56 9.06 9.33 9.70 9.78 9.66 3 3-month 15.32 11.89 8.88 9.24 8.99 9.10 9.53 9.10 9.33 9.68 9.72 9.55 4 6-month 14.76 11.89 8.89 9.28 8.98 9.09 9.50 9.11 9.35 9.68 9.64 9.47 Finance paper, directly placed3 4 5 1-month 15.30 11.64 8.80 9.15 8.99 9.06 9.51 9.05 9.29 9.67 9.74 9.49 6 3-month 14.08 11.23 8.70 9.09 8.82 8.87 9.16 8.93 9.09 9.21 9.25 9.20 7 6-month 13.73 11.20 8.69 9.09 8.79 8.84 9.11 8.92 9.08 9.14 9.15 9.15 Bankers acceptances4 5 8 3-month 15.32 11.89 8.90 9.23 9.01 9.16 9.52 9.17 9.38 9.70 9.66 9.46 9 6-month 14.66 11.83 8.91 9.26 8.97 9.13 9.45 9.16 9.39 9.64 9.52 9.31 Certificates of deposit, secondary market6 10 1-month 15.91 12.04 8.96 9.28 9.11 9.22 9.67 9.22 9.41 9.78 9.90 9.77 11 3-month 15.91 12.27 9.07 9.39 9.18 9.36 9.69 9.34 9.52 9.84 9.83 9.67 12 6-month 15.77 12.57 9.27 9.64 9.31 9.51 9.85 9.53 9.79 10.06 9.91 9.72 13 Eurodollar deposits, 3-month2 16.79 13.12 9.56 9.82 9.54 9.79 10.08 9.78 9.83 10.18 10.36 10.06 U.S. Treasury bills4 Secondary market7 14 3-month 14.03 10.61 8.61 9.00 8.64 8.76 9.00 8.88 8.97 9.09 9.00 8.96 15 6-month 13.80 11.07 8.73 9.15 8.83 8.93 9.17 9.05 9.16 9.24 9.19 9.14 16 1-year 13.14 11.07 8.80 9.27 8.98 9.08 9.24 9.15 9.23 9.28 9.25 9.22 Auction average8 17 3-month 14.029 10.686 8.63 9.05 8.71 8.71 8.96 8.90 9.00 8.93 9.04 8.94 18 6-month 13.776 11.084 8.75 9.19 8.90 8.89 9.14 9.05 9.16 9.12 9.24 9.14 1199 1133..115599 1111..009999 8.86 99..6644 99..1133 99..0033 99..1166 99..0099 99..2233 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 14.78 12.27 9.57 10.16 9.81 9.94 10.11 10.01 10.10 10.15 10.13 10.09 21 2-year 14.56 12.80 10.21 10.79 10.57 10.66 10.84 10.69 10.79 10.89 10.86 10.85 V 2-w-year" 10.85 11.05 10 95 23 3-year 14.44 12.92 10.45 11.07 10.87 10.96 11.13 10.98 11.10 11.21 11.13 11.10 24 5-year 14.24 13.01 10.80 11.43 11.28 11.41 11.54 11.38 11.52 11.62 11.55 11.54 25 7-year 14.06 13.06 11.02 11.61 11.47 11.61 11.78 11.59 11.76 11.88 11.77 11.74 26 10-year 13.91 13.00 11.10 11.65 11.54 11.69 11.83 11.64 11.82 11.93 11.82 11.79 27 20-year 13.72 12.92 11.34 11.82 11.77 11.92 12.02 11.85 12.03 12.11 12.03 11.97 28 30-year 13.44 12.76 11.18 11.63 11.58 11.75 11.88 11.69 11.87 11.98 11.90 11.84 Composite12 29 Over 10 years (long-term) 12.87 12.23 10.84 11.26 11.21 11.32 11.44 11.26 11.42 11.53 11.46 11.41 State and local notes and bonds Moody's series13 30 Aaa 10.43 10.88 8.80 8.97 8.93 9.01 9.34 9.30 9.35 9.45 9.35 9.25 31 Baa 11.76 12.48 10.17 10.10 10.04 10.01 10.29 10.25 10.30 10.30 10.30 10.30 32 Bond Buyer series14 11.33 11.66 9.51 9.58 9.66 9.75 9.89 9.82 9.91 10.04 9.92 9.76 Corporate bonds Seasoned issues15 33 All industries 15.06 14.94 12.78 12.91 12.79 12.93 13.07 12.92 13.01 13.13 13.13 13.09 34 Aaa 14.17 13.79 12.04 12.37 12.25 12.41 12.57 12.39 12.51 12.66 12.61 12.56 35 Aa 14.75 14.41 12.42 12.62 12.49 12.61 12.76 12.60 12.70 12.81 12.82 12.76 36 A 15.29 15.43 13.10 13.11 12.97 13.09 13.21 13.06 13.12 13.23 13.30 13.25 37 Baa 16.04 16.11 13.55 13.55 13.46 13.61 13.75 13.63 13.69 13.79 13.25 13.79 Aaa utility bonds15 <8 15.56 14.41 12.10 12.53 12.43 12.64 12.62 12.62 39 Recently offered issues 15.56 14.45 12.15 12.50 12.42 12.65 12.75 12.65 12.79 12.87 12.73 12.68 MEMO: Dividend/price ratio17 40 Preferred stocks 12.36 12.53 11.0 11.06 10.97 11.12 11.49 11.23 11.36 11.47 11.45 11.66 41 Common stocks 5.20 5.81 4.40 4.24 4.25 4.31 4.32 4.27 4.29 4.35 4.35 4.29 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-'/2-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 of ten 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 68.06 74.02 68.93 90.61 94.61 96.43 96.74 93.96 96.70 96.78 95.36 94.92 2 Industrial 78.64 85.44 78.18 104.46 109.43 112.52 113.21 109.50 112.76 112.87 110.77 110.65 3 Transportation 60.52 72.61 60.41 85.26 89.07 92.22 92.91 88.06 94.56 95.41 97.68 98.79 4 Utility 37.35 38.90 39.75 46.22 47.62 46.76 46.61 46.94 48.16 48.73 48.50 47.00 5 Finance 64.28 73.52 71.99 99.07 102.45 101.22 99.60 95.76 97.00 94.79 94.48 94.25 6 Standard & Poor's Corporation (1941-43 = 10)' ... 118.71 128.05 119.71 157.71 164.10 166.39 166.96 162.42 167.16 167.65 165.23 164.36 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 150.47 171.79 141.31 202.51 223.97 237.51 244.03 230.10 234.36 223.76 218.42 221.31 Volume of trading (thousands of shares) 8 New York Stock Exchange 44,867 46,967 64,617 89,627 93,016 89,729 79,508 74,191 82,866 85,445 86,405 88,041 9 American Stock Exchange 6,377 5,346 5,283 8,576 12,260 10,874 8,199 6,329 6,629 7,751 6,160 6,939 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers3 14,721 14,411 13,325 15,590 16,713 18,292 19,218 19,437 20,124 21,030 22,075 f[ 11 Margin stock4 14,500 14,150 12,980 15,260 16,370 17,930 18,870 19,090 19,760 20,690 21,790 12 Convertible bonds 219 259 344 329 342 361 347 346 363 339 285 1 13 Subscription issues 2 2 1 1 1 1 1 1 1 1 1 n.a. Free credit balances at brokers5 1 14 Margin-account 2,105 3,515 5,735 6,090 6,090 6,150 6,275 6,350 6,550 6,630 6,515 I 15 Cash-account 6,070 7,150 8,390 7,970 8,310 8,590 8,145 8,035 7,930 7,695 7,600 T 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 14.0 14.0 13.0 21.0 23.0 24.(V 35.0 48.0 18 40-49 30.0 24.0 24.0 19.0 19.0 21.0 28.0 28.0 27.0 24.0 22.0 19 50-59 25.0 17.0 24.0 28.0 30.0 29.0 21.0 20.0 21.0 17.0 17.0 n.a. 20 60-69 14.0 10.0 14.0 19.0 16.0 16.0 14.0 13.0 12.(K 10.0 10.0 I 21 70-79 9.0 6.0 9.0 10.0 11.0 12.0 9.0 9.0 9.0 7.0 7.0 1 22 80 or more 8.0 6.0 8.0 9.0 9.0 9.0 7.0 7.0 7.0 7.0 6.0 T Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)7 21,690 25,870 35,598 44,999 45,465 47,100 50,580 50,267 51,211 54,029 57,490 f Distribution by equity status (percent) 1 24 Net credit status 47.8 58.0 62.0 64.0 62.0 62.0 62.0 62.0 64.0 63.0 63.0 n.a. Debt status, equity of 1 25 60 percent or more 44.4 31.0 29.0 30.0 32.0 33.0 31.0 31.0 29.0 28.0 29.0 1 26 Less than 60 percent 7.7 11.0 9.0 6.0 6.0 5.0 6.0 7.0 7.0 9.0 8.0 t Margin requirements (percent of market value and effective date)8 Mar. 1 , 1968 June S, 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 • January 1984 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1982 1983 AAccccoouunntt 11998811 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. NOV.P Savings and loan associations 664,167 706,045 714,676 722,352 723,616 728,487 728,156 731,275 739,575 745,040 746,514 754,932 762,237 2 Mortgages 518,547 482,234 481,470 481,090 475,688 476,248 472,124 473,134 477,919 481,691 480,813 483,854 48* ,464 3 Cash and investment securities' 63,123 84,767 90,662 94,080 96,649 99,226 103,468 101,284 101,754 98,996 99,419 100,714 100,943 4 Other 82,497 139,044 142,544 147,182 151,279 153,013 152,564 156,857 159,902 164,353 166,282 170,364 172,830 5 Liabilities and net worth 664,167 706,045 714,676 722,352 723,616 728,487 728,156 731,275 739,575 745,040 746,514 754,932 762,237 6 Savings capital 525,061 566,189 582,918 591,913 597,112 601,171 599,673 603,178 608,683 613,087 615,691 620,233 623,208 7 Borrowed money 88,782 97,979 88,925 86,544 84,884 83,640 82,722 84,328 84,682 84,345 85,926 87,315 89 ,409 8 FHLBB 62,794 63,861 60,415 58,841 56,859 55,933 54,392 54,234 53,579 52,303 52,179 52,678 51,742 9 Other 25,988 34,118 28,510 27,703 28,025 27,707 28,330 30,094 31,103 32,042 33,747 34,637 37,667 10 Loans in process 6,385 9,934 10,453 11,039 12,245 13,462 14,528 15,972 17,063 17,931 18,773 19,168 19,700 11 Other 15,544 15,720 16,658 17,524 14,767 16,210 18,323 15,548 17,931 19,078 15,978 17,934 19,741 12 Net worth2 28,395 26,157 26,175 26,371 26,853 27,466 27,438 28,221 28,279 28,530 28,919 29,450 29,879 13 MEMO: Mortgage loan commitments outstanding3 15,225 18,054 19,453 22,051 24,885 27,920 30,089 30,630 31,667 32,342 32,410 32,723 34,497 Mutual savings banks4 14 Assets 175,728 174,197 174,726 176,378 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 Loans 15 Mortgage 99,997 94,091 93,944 93,607 93,823 93,311 93,587 94,000 93,998 93,941 94,831 95,181 16 Other 14,753 16,957 17,420 18,211 17,837 18,353 17,893 17,438 18,134 17,929 17,830 18,860 Securities 17 U.S. government5 9,810 9,743 10,248 11,081 12,187 12,364 13,110 13,572 13,931 14,484 14,794 14,774 18 State and local government 2,288 2,470 2,446 2,440 2,403 2,311 2,260 2,257 2,248 2,247 2,244 2,189 19 Corporate and other6 37,791 36,161 36,430 36,905 37,827 38,342 39,142 40,206 40,667 41,045 41,889 41,907 20 Cash 5,442 6,919 6,275 6,104 6,548 6,039 5,960 6,224 5,322 5,168 5,560 4,940 21 Other assets 5,649 7,855 7,963 8,031 8,189 8,107 8,118 8,276 8,522 8,799 8,893 9,051 22 Liabilities 175,728 174,197 174,726 176,378 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 n a. 23 Deposits 155,110 155,196 157,113 159,162 161,489 161,262 162,287 163,990 164,848 165,087 165,887 166,260 24 Regular7 153,003 152,777 154,876 156,915 159,088 158,760 159,840 161,573 162,271 162,600 162,998 163,782 25 Ordinary savings 49,425 46,862 41,850 41,165 41,183 40,379 40,467 40,451 39,983 39,360 39,768 38,129 26 Time 103,578 96,369 90,184 87,377 86,272 84,593 83,506 84,705 85,445 86,446 85,603 90,639 27 Other 2,108 2,419 2,237 2,247 2,401 2,502 2,447 2,417 2,577 2,487 2,889 2,478 28 Other liabilities 10,632 8,336 7,722 7,542 7,395 7,631 3,114 7,754 7,5% 7,884 9,475 8,988 29 General reserve accounts 9,986 9,235 9,196 9,197 9,342 9,352 9,377 9,575 9,684 9,932 9,879 12,245 30 MEMO: Mortgage loan commitments outstanding8 1,293 1,285 1,253 1,295 1,639 1,882 1,860 1,884 1,969 2,046 2,023 2,210 Life insurance companies 31 Assets 525,803 588,163 589,490 595,959 602,770 609,298 620,572 628,224 633,569 638,826 644,295 647,149 Securities 25,209 36,499 35,587 36,946 38,449 39,210 42,523 43,348 44,751 45,700 46,109 47,767 33 United States9 8,167 16,529 16,731 17,877 19,213 19,746 20,706 21,141 22,228 22,817 23,134 24,380 7,151 8,664 8,225 8,333 8,368 8,524 10,053 10,355 10,504 10,695 10,739 10,791 9,891 11,306 10,631 10,736 10,868 10,940 11,764 11,852 12,019 12,188 12,236 12,596 255,769 287,126 290,178 293,427 296,233 300,558 309,254 313,510 316,934 318,584 321,568 320,964 n.a. 37 Bonds 208,099 231,406 233,380 235,376 236,430 238,689 245,833 248,248 252,397 253,977 256,131 256,332 38 Stocks 47,670 55,720 56,798 58,051 59,803 61,869 63,421 65,262 64,537 64,607 65,437 64,632 39 Mortgages 137,747 141,989 142,277 142,683 143,031 143,011 143,758 144,725 145,086 146,400 147,356 148,256 40,094 20,264 20,922 21,014 21,175 21,352 21,344 21,629 21,690 21,749 21,903 22,141 41 Policy loans 48,706 52,961 53,239 53,383 53,560 53,715 53,804 53,914 53,972 54,063 54,165 54,255 42 Other assets 35,815 48,571 42,111 43,355 50,322 51,452 48,889 51,098 51,136 52,330 53,194 53,765 Credit unions11 43 Total assets/liabilities and capital 60,611 69,572 69,831 71,412 73,876 74,896 76,851 78,467 79,084 79,595 80,678 81,033 81,845 39,181 45,483 45,609 46,673 48,350 48,986 50,275 51,430 51,844 52,224 53,033 53,222 53,710 45 State 21,430 24,089 24,222 24,739 22,526 25,910 26,576 27,037 27,240 27,371 27,645 27,811 28,135 46 Loans outstanding 42,333 43,223 42,946 42,823 43,067 43,530 44,055 45,001 45,616 46,880 47,744 48,345 49,102 47 Federal 27,096 27,941 27,740 27,644 27,823 28,133 28,512 29,175 29,577 30,384 30,912 31,287 31,789 48 State 15,237 15,282 15,206 15,179 15,244 15,397 15,543 15,826 16,039 16,496 16,832 17,058 17,313 49 Savings 54,152 62,977 63,318 64,780 67,494 68,663 70,221 71,712 72,438 72,550 73,697 74,187 74,685 50 Federal (shares) 35,25( 41,341 41,556 42,533 44,336 45,165 46,192 47,145 47,713 47,874 48,709 49,044 49,400 51 State (shares and deposits) 18,902 21,636 21,762 22,247 23,158 23,498 24,029 24,567 24,725 24,676 24,988 25,143 25,285 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 Sept. Oct. Nov. U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 63,556 45,156 46,200 2 Outlays1-2 657,204 728,375 795,917 348,678 390,846 396,477 61,610 70,225 67,792 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 1,946 -25,069 -21,592 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 14,006 -1,471 -3,408 5 Federal funds -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -12,060 -23,598 -18,183 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -1,270 1,347 -526 77 OOtthheerr44 -236 -3,190 -1,953 227 -2,267 -528 -1,432 100 -152 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 -756 -23,623 -22,270 Source or financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 15,442 11,732 8,946 10 Cash and monetary assets (decrease, or increase (-))5 -1,878 -11,911 -9,889 -408 -9,057 -9,664 -19,061 9,525 21,277 11 Other6 1,485 4,858 5,176 -7,405 1,146 3,222 4,375 2,367 -7,953 MEMO; 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 37,057 27,100 5,213 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 16,557 4,841 2,896 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 20,500 22,259 2,316 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 • January 1984 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1982 1983 1983 111999888111 111999888222 111999888333 HI H2 HI Sept. Oct. Nov. RECEIPTS 1 All sources1 599,272 617,766 600,563 322,478 286,338 306,331 63,556 48,102 46,200 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 30,961 23,227 22,700 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 21,060 21,720 22,550 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 1 0 0 5 Nonwithheld 76,844 84,691 83,586 66,174 20,040 63,014 11,595 2,022 1,011 6 Refunds 47,299 54,498 60,692 49,217 5,938 54,024 1,695 515 861 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 10,477 2,824 1,827 8 Refunds 12,596 16,784 24,758 8,028 11,467 13,809 1,430 2,356 11,,336600 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 94,278 110,521 17,240 15,707 1166,,778800 10 Payroll employment taxes and contributions2 156,932 172,744 179,010 88,795 85,063 90,912 15,753 14,266 1144,,115511 11 Self-employment taxes and contributions3 6,041 7,941 6,756 7,357 177 6,427 927 0 103 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 176 1,100 2,166 13 Other net receipts1-4 3,984 4,212 4,436 2,119 2,181 2,196 384 341 360 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 3,692 3,142 3,259 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 815 766 904 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 552 488 453 17 Miscellaneous receipts5 .- 13,790 16,161 15,594 7,984 7,891 7,751 1,249 1,357 1,637 OUTLAYS 18 AH types1 657,204 728,424 795,917 348,683 390,847 396,477 61,610 70,225 67,792 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 18,086 17,416 17,947 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 822 1,083 318 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 685 880 777 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 -97 253 342 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 1,344 1,251 974 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 662 1,718 766 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 190 1,848 -288 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 2,148 3,051 2,118 27 Community and regional development 9,394 7,165 7,302 3,055 4,186 3,124 671 1,015 686 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,046 2,165 2,205 29 Health1 65,982 74,017 81,157 37,219 39,073 41,206 5,917 7,928 7,064 30 Income security 225,101 248,343 280,244 112,782 133,779 143,001 22,853 20,922 22,810 31 Veterans benefits and services 22,988 23,955 24,845 10,865 13,241 11,334 2,012 1,940 2,051 32 Administration of justice 4,696 4,671 5,014 2,334 2,373 2,522 398 442 396 33 General government 4,614 4,726 4,991 2,400 2,322 2,434 282 143 535 34 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 31 1,644 337 35 Net interest® 68,726 84,697 103,916 41,883 44,948 50,383 6,390 7,767 9,464 36 Undistributed offsetting receipts7 -16,509 -13,270 -35,566 -6,490 -8,333 -16,912 -2,828 -1,242 -710 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 1,138.2 4 Held by agencies 208.1 203.2 202.4 211.7 216.4 209.4 201.2 229.3 239.0 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 3.6 7 Held by agencies 1.5 1.4 1.2 1.2 1.2 1.2 1.1 1.1 1.1 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 TTyyppee aanndd hhoollddeerr 11997799 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,348.4 1,377.2 1,384.6 1.389.2 1,410.7 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,346.9 1,375.8 1,383.3 1,387.9 1,400.9 3 Marketable 530.7 623.2 720.3 881.5 1,010.4 1,024.0 1,035.3 1.044.3 1,050.9 4 Bills 172.6 216.1 245.0 311.8 340.4 340.7 339.0 335.3 343.8 5 Notes 283.4 321.6 375.3 465.0 544.2 557.5 566.2 575.3 573.4 6 Bonds 74.7 85.4 99.9 104.6 125.8 125.7 129.2 133.8 133.7 7 Nonmarketable1 313.2 305.7 307.0 314.0 336.5 351.8 347.9 343.5 350.0 s 2.2 9 State and local government series 24.6 23.8 23.0 25.7 33.9 35.1 35.3 35.7 36.7 10 Foreign issues3 28.8 24.0 19.0 14.7 11.1 11.5 11.5 10.5 10.4 11 Government 23.6 17.6 14.9 13.0 11.1 11.5 11.5 10.5 10.4 12 Public 5.3 6.4 4.1 1.7 .0 .0 .0 .0 .0 13 Savings bonds and notes 79.9 72.5 68.1 68.0 70.0 70.3 70.6 70.9 70.7 14 Government account series4 177.5 185.1 196.7 205.4 221.4 234.7 230.3 226.2 231.9 15 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.5 1.5 1.3 1.3 9.8 By holder5 16 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 17 Federal Reserve Banks 117.5 121.3 131.0 139.3 18 Private investors 540.5 616.4 694.5 848.4 19 Commercial banks 96.4 116.0 109.4 131.4 20 Mutual savings banks 4.7 5.4 5.2 n.a. 21 Insurance companies 16.7 20.1 19.1 38.7 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 Individuals 24 Savings bonds 79.9 72.5 68.0 68.3 25 Other securities 36.2 56.7 75.6 48.2 26 Foreign and international6 124.4 127.7 141.4 149.4 27 Other miscellaneous investors7 90.1 106.9 152.3 233.2 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Data for Federal Reserve Banks and U.S. government agencies and trust tion Administration, depository bonds, retirement plan bonds, and individual funds are actual holdings; data for other groups are Treasury estimates. retirement bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, United States. may be exchanged (or converted) at the owner's option for l'/S> 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 • January 1984 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 Aug. Sept. Oct. Sept. 21 Sept. 28 Oct. 5 Oct. 12 Oct. 19 Oct. 26 Immediate delivery1 1 U.S. government securities 18,331 24,728 32,271 45,684 48,100 46,157 49,117 56,318 50,857 48,532 44,621 44,745 By maturity 2 Bills 11,413 14,768 18,398 23,908 24,359 24,276 25,099 26,161 28,428 26,458 23,384 21,549 3 Other within 1 year 421 621 810 669 672 757 627 494 816 821 749 715 4 1-5 years 3,330 4,360 6,272 10,188 10,361 10,175 13,581 12,635 10,027 9,352 9,753 12,102 5 5-10 years 1,464 2,451 3,557 4,819 7,407 5,830 5,244 9,066 6,355 5,946 5,556 5,842 6 Over 10 years 1,704 2,528 3,234 6,100 5,302 5,119 4,566 7,961 5,231 5,956 5,179 4,537 By type of customer / U.S. government securities dealers 1,484 1,640 1,769 2,179 2,426 2,468 2,127 2,686 2,766 2,589 2,248 2,637 8 U.S. government securities brokers 7,610 11,750 15,659 23,951 24,477 23,396 25,401 30,366 26,261 25,028 22,856 21,419 9 All others2 9,237 11,337 15,344 19,553 21,197 20,292 21,589 23,266 21,831 20,916 19,517 20,689 10 Federal agency securities 3,258 3,306 4,142 5,275 6,233 6,851 7,149 6,922 5,939 6,749 8,418 6,584 11 Certificates of deposit 2,472 4,477 5,001 4,425 4,765 4,206 5,592 4,855 3,814 4,027 4,537 4,120 12 Bankers acceptances 1,807 2,502 2,658 3,078 2,657 3,610 2,783 2,745 2,855 3,076 2,066 13 Commercial paper 6,128 7,595 7,128 7,677 8,626 7,661 6,742 9,594 99,,225511 77,,994455 88,,339911 Futures transactions3 14 Treasury bills 3,523 5,031 7,458 6,008 7,978 7,137 6,833 6,811 8,370 10,927 6,165 15 Treasury coupons n a. 1,330 1,490 3,144 2,549 3,173 3,058 2,880 2,507 3,275 3,859 3,228 16 Federal agency securities 234 259 276 200 208 289 183 210 228 227 211 Forward transactions4 17 U.S. government securities 365 835 1,792 2,113 1,108 2,890 3,219 274 789 1,128 2,069 18 Federal agency securities 1,370 982 2,118 1,928 1,798 2,609 2,112 1,427 2,301 1,983 1,519 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 Aug. Sept. Oct. Sept. 7 Sept. 14 Sept. 21 Sept. 28 Oct. 5 Positions Net immediate1 1 U.S. government securities A ,306 9,033 9,328 3,252 7,500 5,000 4,372 5,884 7,392 11,454 9,179 2 Bills 4,103 6,485 4,837 877 1,779 2,148 139 1,879 1,389 3,345 2,848 3 Other within 1 year -1,062 -1,526 -199 -198 -558 -465 -621 -494 -527 -591 -397 4 1-5 years 434 1,488 2,932 2,216 4,496 3,021 3,129 2,466 5,391 6,435 5,024 5 5-10 years 166 292 -341 147 1,162 132 1,097 1,059 540 1,889 1,151 6 Over 10 years 665 2,294 2,001 210 621 164 628 974 600 376 552 7 Federal agency securities 797 2,277 3,712 7,995 9,170 10,152 8,559 9,557 9,785 8,655 9,216 8 Certificates of deposit 3,115 3,435 5,531 4,688 6,095 6,802 5,867 6,125 6,312 6,039 6,303 9 Bankers acceptances 1,746 2,832 2,917 3,743 4,062 3,397 4,320 3,898 3,438 3,425 10 Commercial paper 2,658 3,317 2,755 3,2% 3,385 2,818 3,417 3,122 3,465 33,,990088 Futures positions 11 Treasury bills -8,934 -2,508 1,493 -6,932 -8,352 -3,606 -5,539 -6,708 -9,513 -10,922 12 Treasury coupons n.a. -2,733 -2,361 -1,715 -1,530 -711 -895 -1,612 -1,742 -1,668 -1,612 13 Federal agency securities 522 -224 428 188 308 434 294 123 -25 144 Forward positions 14 U.S. government securities -603 -788 -4,348 -1,456 -1,756 -1,724 -2,412 -1,156 -643 -1,452 15 Federal agency securities -451 -1,190 -4,049 -5,205 -6,219 -4,991 -5,074 -6,305 -4,469 -5,373 Financing2 Reverse repurchase agreements3 16 Overnight and continuing i 14,568 2266,,775544 32,232 30,255 33,623 34,483 31,720 26,506 28,311 31,848 17 Term agreements r 32,048 48,247 51,018 53,158 53,194 50,% 1 53,183 52,931 5555,,555588 5511,,444433 Repurchase agreements4 n.a. 18 Overnight and continuing i 35,919 49,695 58,772 60,603 63,269 64,824 63,467 56,302 57,817 61,406 19 Term agreements t 29,449 43,410 41,110 44,998 47,319 41,138 43,514 44,861 50,478 47,263 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 June July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 188,665 221,946 237,085 235,041 236,037 236,931 236,610 239,121 240,177 2 Federal agencies 28,606 31,806 33,055 33,353 33,436 33,420 33,744 33,735 33,813 3 Defense Department' 610 484 354 298 284 274 264 258 253 4 Export-Import Bank2 3 11,250 13,339 14,218 14,563 14,563 14,564 14,740 14,740 14,740 5 Federal Housing Administration4 477 413 288 228 220 213 206 203 197 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 1,404 1,404 1,404 1,404 1,404 1,404 8 Tennessee Valley Authority 11,190 13,115 14,365 14,570 14,675 14,675 14,840 14,840 14,945 9 United States Railway Association6 492 202 194 125 125 125 125 125 109 10 Federally sponsored agencies7 160,059 190,140 204,030 201,688 202,601 203,511 202,866 205,386 206,364 11 Federal Home Loan Banks 37,268 54,131 55,967 48,871 49,065 49,081 49,283 49,956 49,285 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 6,500 6,146 5,875 6,134 6,950 7,024 13 Federal National Mortgage Association 55,182 58,749 70,052 71,303 71,612 72,163 71,258 71,965 73,531 14 Farm Credit Banks 62,923 71,359 71,896 72,652 73,306 73,744 73,046 73,465 73,474 15 Student Loan Marketing Association (8) 421 1,591 2,362 2,472 2,648 3,145 3,050 3,050 MEMO: 16 Federal Financing Bank debt 87,460 110,698 126,424 131,987 133,367 134,505 136,081 134,799 135,361 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,493 14,493 14,493 14,676 14,676 14,676 18 Postal Service6 1,520 1,288 1,221 1,154 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 12,845 12,950 12,950 13,115 13,175 13,220 21 United States Railway Association6 492 202 194 125 125 125 125 125 109 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 54,946 55,776 56,386 55,691 55,916 55,916 23 Rural Electrification Administration 9,196 13,516 17,157 18,378 18,497 18,638 18,936 19,093 19,216 24 Other 11,262 12,740 22,774 25,046 25,372 25,759 27,384 25,660 26,070 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 Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. NOTES TO TABLE 1.43 1. Immediate positions are net amounts (in terms of par values) of securities 3. Includes all reverse repurchase agreements, including those that have been owned by nonbank dealer firms and dealer departments of commercial banks on a arranged to make delivery on short sales and those for which the securities commitment, that is, trade-date basis, including any such securities that have obtained have been used as collateral on borrowings, 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 • January 1984 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 Type of issue or issuer, or use 11998800 11998811 11998822 Mar. Apr. May June' July' Aug.' Sept.' Oct. 1 All issues, new and refunding1 48,367 47,732 78,950 8,762' u,ooy 9,572 7,542 4,344 6,115 6,044 6,377 Type of issue 2 General obligation 14,100 12,394 21,088 2,255' 3,461' 3,570 1,549 856 1,586 1,238 1,870 3 U.S. government loans2 38 34 225 3 2 6 7 7 9 14 15 4 Revenue 34,267 35,338 57,862 6,507r 7,542' 6,002 5,993 3,488 4,529 4,806 4,507 5 U.S. government loans2 57 55 461 5 9 14 16 26 29 35 39 Type of issuer 6 State 5,304 5,288 8,406 724 1,745 830 277 484 672 452 856 7 Special district and statutory authority 26,972 27,499 45,000 5,444 5,801' 4,470 4,253 2,997 3,336 4,132 4,259 8 Municipalities, counties, townships, school districts 16,090 14,945 25,544 2,594 3,457 4,272 3,012 863 2,107 1,460 1,262 9 Issues for new capital, total 46,736 46,530 74,613 7,542 9,054 6,978 6,036 3,858 4,549 5,421 4,956 Use of proceeds 10 Education 4,572 4,547 6,444 831 681 827 881 535 713 525 433 11 Transportation 2,621 3,447 6,256 816 560 419 233 274 259 194 250 12 Utilities and conservation 8,149 10,037 14,254 1,732 2,592 1,513 938 267 279 1,236 589 13 Social welfare 19,958 12,729 26,605 2,794 3,139 2,062 2,117 1,915 2,131 2,304 2,469 14 Industrial aid 3,974 7,651 8,256 396 482 705 664 376 222 451 281 15 Other purposes 7,462 8,119 12,797 973 1,600 1,452 1,203 491 945 711 934 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 Mar. Apr. May June July Aug. Sept. Oct. 1 All issues1-2 73,694 70,441 84,198 11,728 10,468 11,489 8,165 6,474 5,941 6,568 6,592 2 Bonds 53,206 45,092 53,636 5,317 6,015 7,017 2,244 2,550 2,547 2,865 3,055 Type of offering 3 Public 41,587 38,103 43,838 5,317 6,015 7,017 2,244 2,550 2,547 2,865 3,055 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 13,123 962 1,449 2,158 706 60 200 282 367 6 Commercial and miscellaneous 6,693 5,229 5,681 511 1,109 1,055 425 228 458 353 114 7 Transportation 3,329 2,052 1,474 0 175 150 115 148 0 0 0 8 Public utility 9,557 8,963 12,155 950 755 1,115 363 322 355 590 510 9 Communication 6,683 4,280 2,265 650 725 505 250 1,100 0 100 50 10 Real estate and financial 11,534 12,243 18,938 2,244 1,802 2,034 385 692 1,534 1,540 2,014 11 Stocks3 20,489 25,349 30,562 6,411 4,453 4,472 5,921 3,924 3,394 3,703 3,537 Type 12 Preferred 3,631 1,797 5,113 893 440 492 665 290 247 644 300 13 Common 16,858 23,552 25,449 5,518 4,013 3,980 5,256 3,634 3,147 3,059 3,237 Industry group 14 Manufacturing 4,839 5,074 5,649 1,654 1,424 1,545 2,449 1,015 1,309 962 751 15 Commercial and miscellaneous 5,245 7,557 7,770 1,225 1,494 922 1,358 1,415 743 997 868 16 Transportation 549 779 709 91 113 221 109 337 145 165 305 17 Public utility 6,230 5,577 7,517 674 639 264 550 72 263 200 581 18 Communication 567 1,778 2,227 1,133 37 8 138 20 236 0 36 19 Real estate and financial 3,059 4,584 6,690 1,634 746 1,512 1,317 1,065 698 1,379 996 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 Apr. May June July Aug. Sept. Oct. Nov. INVESTMENT COMPANIES' 1 Sales of own shares2 20,596 45,675 8,418 7,577 8,107 6,944 6,032 5,915 6,532 6,335 2 Redemptions of own shares3 15,866 30,078 6,482 4,486 5,416 4,500 4,885 4,412 4,264 3,912 3 Net sales 4,730 15,597 1,936 3,091 2,691 2,444 1,147 1,503 2,268 2,423 4 Assets4 55,207 76,841 98,669 101,423 106,449 104,279 104,494 109,455 107,314 113,076 5 Cash position5 5,277 6,040 8,496 8,771 9,110 8,815 8,045 8,868 8,256 9,395 6 Other 49,930 70,801 90,173 92,652 97,339 95,464 93,449 100,587 99,058 103,681 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 Q4 QL Q2 Q3 Q4 QL Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 175.4 192.3 164.8 192.0 162.0 166.8 168.5 161.9 181.8 218.2 248.4 2 Profits before tax 234.6 227.0 174.2 217.2 173.2 178.8 177.3 167.5 169.7 203.3 229.1 3 Profits tax liability 84.8 82.8 59.1 75.6 60.3 61.4 60.8 54.0 61.5 76.0 84.9 4 Profits after tax 149.8 144.1 115.1 141.7 112.9 117.4 116.5 113.5 108.2 127.2 144.1 5 Dividends 58.6 64.7 68.7 67.3 67.7 67.8 68.8 70.4 71.4 72.0 73.7 6 Undistributed profits 91.2 79.4 46.4 74.4 45.2 49.5 47.7 43.1 36.7 55.2 70.4 7 Inventory valuation -42.9 -23.6 -8.3 -15.7 -5.5 -8.5 -9.0 -10.3 -1.7 -10.6 -18.3 8 Capital consumption adjustment -16.3 -11.0 -1.1 -9.5 -5.6 -3.5 .1 4.7 13.9 25.6 37.6 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 • January 1984 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 Q1 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 376.9 431.8 505.1 542.8 585.1 587.6 596.5 575.2 573.2 570.5 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 1984 IInndduussttrryy11 11998822 11998833?? 11998844'' Q3 Q4 QL Q2 L Q3 Q41 QL> Q2> 1 Total nonfarm business 316.43 303.20 333.32 315.79 303.18 293.03 293.46 304.70 321.60 323.07 325.42 Manufacturing 2 Durable goods industries 56.44 51.45 59.87 57.14 50.51 50.74 48.48 53.06 53.52 57.18 58.09 3 Nondurable goods industries 63.23 59.74 66.11 62.32 59.72 59.12 60.31 58.06 61.45 61.81 62.86 Nonmanufacturing 4 Mining 15.45 12.00 13.48 14.63 13.41 12.03 10.91 11.93 13.14 12.25 13.68 Transportation 5 Railroad 4.38 3.93 4.50 3.94 4.35 3.35 3.64 4.07 4.68 4.38 4.68 6 Air 3.93 3.78 2.59 4.11 4.76 4.09 4.10 3.57 3.34 2.44 2.70 7 Other 3.64 3.54 3.86 3.24 3.22 3.60 3.14 3.36 4.07 3.96 4.03 Public utilities 8 Electric 33.40 35.29 35.36 34.98 35.15 33.97 34.86 35.84 36.50 32.80 32.76 9 Gas and other 8.55 7.33 8.81 8.40 7.85 7.64 6.62 6.38 8.67 9.02 9.54 10 Trade and services 86.95 88.02 96.35 87.31 84.36 82.38 85.85 91.06 92.79 96.98 95.03 11 Communication and other2 40.46 38.11 42.38 39.73 39.84 36.11 35.54 37.38 43.42 42.25 42.03 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 Q3 Q4 QI Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 85.5 88.3 89.5 89.9 91.3 92.3 2 Business 55.2 63.3 70.3 72.3 80.6 82.2 81.0 82.2 84.9 86.8 3 Total 99.2 116.0 136.0 145.9 166.1 170.5 170.4 172.1 176.2 179.0 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 28.9 30.4 30.5 29.7 30.4 30.1 5 Accounts receivable, net 86.5 100.4 116.0 122.6 137.2 140.1 139.8 142.4 145.8 148.9 7 6 S C e a c s u h r i a t n ie d s bank deposits 2. . 6 9 3 1 . . 5 3 1 y 24.91 27.5 34.2 39.1 39.7 42.8 44.3 45.0 8 All other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 171.4 179.2 179.5 185.2 190.2 193.9 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 15.4 16.8 18.6 16.6 16.3 17.0 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 46.7 45.8 45.2 49.0 49.7 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 9.6 9.9 8.7 9.8 9.6 8.7 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 54.8 60.9 63.5 64.7 64.5 66.2 14 Other 11.5 12.6 14.2 14.3 17.8 20.5 18.7 22.8 24.0 24.4 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.8 24.5 24.2 26.0 26.7 27.9 16 Total liabilities and capital 104.3 122.4 140.9 150.1 171.4 179.2 179.5 185.2 190.2 193.9 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.52 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 OOOcccttt... 333111,,, 111999888333''' Aug. Sept. Oct. Aug. Sept. Oct. Aug. Sept. Oct. 1 Total 89,240 1,817 2,909 986 29,882 27,209 25,841 28,065 24,300 24,855 2 Retail automotive (commercial vehicles) 19,523 1,052 1,443 680 2,184 2,620 1,925 1,132 1,177 1,245 3 Wholesale automotive 12,562 1,039 397 310 8,285 7,461 7,124 7,246 7,064 6,814 4 Retail paper on business, industrial, and farm equipment 28,177 -320 256 -406 1,385 11,,114499 11,,004499 11,,770055 893 11,,445555 5 Loans on commercial accounts receivable and factored commercial accounts receivable 9,927 279 255 149 15,794 13,782 13,822 15,515 13,527 13,673 6 All other business credit 19,051 -233 558 253 2,234 2,197 1,921 2,467 1,639 1,668 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic NonfinancialS tatistics • January 1984 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 IItteemm 11998800 11998811 11998822 May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 83.4 90.4 94.6 92.1 93.0 97.3 94.4 100.7 2 Amount of loan (thousands of dollars) 59.2 65.3 69.8 67.8 69.2 72.3 67.3 76.5 3 Loan/price ratio (percent) 73.2 74.8 76.6 77.5 76.9 76.5 73.3 78.5 4 Maturity (years) 28.2 27.7 27.6 26.8 27.3 28.1 25.7 27.2 5 Fees and charges (percent of loan amount)2 2.09 2.67 2.95 2.44 2.43 2.54 1.96 2.45 6 Contract rate (percent per annum) 12.25 14.16 14.47 12.21 11.90 12.02 12.01 12.08 Yield (percent per annum) 7 FHLBB series5 12.65 14.74 15.12 12.67 12.36 12.50 12.38 12.54 8 HUD series4 13.95 16.52 15.79 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 12.41 12.96 14.23 13.78 13.55 10 GNMA securities6 12.55 15.29 14.68 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 74,116 74,669 74,630 75,057 75,174 75,665 76,714 12 FHA/VA-insured 37,365 39.341 39,718 37,669 37,376 37,092 36,894 36,670 36,455 36,349 13 Conventional 17,725 19,334 26,312 36,446 37,293 37,583 38,163 38,505 39,210 40,365 Mortgage transactions (during period) 14 Purchases 8,099 6,112 15,116 1,579 1,333 1,358 1,213 1,203 1,244 1,348 15 Sales 0 2 2 204 83 786 121' 464 257 0 Mortgage commitments1 16 Contracted (during period) 8,083 9,331 22,105 1,534 2,506 1,198 1,282 2,739 1,882 997 17 Outstanding (end of period) 3,278 3,717 7,606 5,726 5,887 5,099 5,165 6,684 7,182 6,493 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 4,362 5,245 5,153 6,026 6,235 6,182 6,149 6,857 6,963 19 FHA/VA 2,116 2,236 1,921 984 982 971 964 961 947 20 Conventional 2,246 3,010 3.224 5,042 5,253 5,211 5,185 5.8% 6,016 Mortgage transactions (during period) 21 Purchases 3,723 3,789 23,671 2,439 1,494 1,523 1,621 2,263 2,886 n a. 22 Sales 2,527 3,531 24,164 1,408 1,244 1,491 1,588 1,556 2,750 Mortgage commitments9 23 Contracted (during period) 3,859 6,974 28,187 2,334 2,358 4,671 6,367 3,283 2,598 24 Outstanding (end of period) 447 3,518 7,549 6,889 7,719 10,794 15,519 16,512 16,198 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 1,471,786 1,583,264 1,655,172 1,632,161 1,655,172 1,682,598 1,724,122 1,774,150 7 986,979 1,065,294 1,114,193 1,096,173 1,114,193 1,133,261 1,161,807 1,198,362 3 Multifamily 137,134 136,354 140,285 138,385 140,285 142,154 145,387 147,682 4 Commercial 255,655 279,889 293,884 291,197 293,884 300,246 309,224 319,289 5 92,018 101,727 106,810 106,406 106,810 106,937 107,704 108,817 Major financial institutions 997,168 1,040,827 1,023,700 1,027,027 1,023,700 1,029,770 1,049,758 1,080,316 7 Commercial banks1 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 1? Mutual savings banks 99,865 99,997 97,805 94,382 97,805 105,379 119,236 128,057 13 1- to 4-family 67,489 68,187 66,777 63,849 66,777 72,912 83,870 90,911 14 Multifamily 16,058 15,960 15,305 15,026 15,305 15,862 17,066 17,748 15 Commercial 16,278 15,810 15,694 15,479 15,694 16,577 18,262 19,361 16 Farm 40 40 29 28 29 28 38 37 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 419,763 433,142 397,795 408,701 397,795 389,112 383,806 389,121 19 Multifamily 38,142 37,699 39,302 38,771 39,302 39,721 40,453 41,636 20 Commercial 45,287 47,706 45,137 46,427 45,137 46,855 48,875 50,589 71 Life insurance companies 131,081 137,747 141,919 140,404 141,919 143,031 144,725 146,850 77 1- to 4-family 17,943 17,201 16,743 16,865 16,743 16,388 15,860 15,648 73 Multifamily 19,514 19,283 18,847 18,967 18,847 18,825 18,778 18,892 74 Commercial 80,666 88,163 93,501 91,640 93,501 95,158 97,416 99,542 25 Farm 12,958 13,100 12,828 12,932 12,828 12,660 12,671 12,768 76 Federal and related agencies 114,300 126,094 138,185 134,409 138,185 140,028 142,094 142,291 77 Government National Mortgage Association 4,642 4,765 4,227 4,110 4,227 3,753 3,643 3,475 78 1- to 4-family 704 693 676 682 676 665 651 639 29 Multifamily 3,938 4,072 3,551 3,428 3,551 3,088 2,992 2,836 30 Farmers Home Administration 3,492 2,235 1,786 947 1,786 2,077 1,605 600 31 1- to 4-family 916 914 783 302 783 707 381 211 37 Multifamily 610 473 218 46 218 380 555 32 33 Commercial 411 506 377 164 377 337 248 113 34 Farm 1,555 342 408 435 408 653 421 244 35 Federal Housing and Veterans Administration 5,640 5,999 5,228 5,362 5,228 5,138 5,084 5,117 36 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 51,069 47 1- to 4-family 2,099 2,788 3,068 3,029 3,068 3,059 3,030 3,008 43 Farm 36,032 43,658 47,282 46,954 47,282 47,485 47,828 48,061 44 Federal Home Loan Mortgage Corporation 5,068 5,237 4,780 5,166 4,780 4,850 6,235 6,856 4'i 1- to 4-family 3,873 5,181 4,733 5,116 4,733 4,795 6,119 6,799 46 Multifamily 1,195 56 47 50 47 55 116 57 47 Mortgage pools or trusts2 142,258 163,000 216,654 198,376 216,654 234,596 252,665 270,626 48 Government National Mortgage Association 93,874 105,790 118,940 114,776 118,940 127,939 139,276 149,612 49 91,602 103,007 115,831 111,728 115,831 124,482 135,628 145,692 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 54,152 57 1- to 4-family 13,471 19,501 42,560 34,739 42,560 47,575 50,446 53,539 53 Multifamily 3,383 352 404 393 404 433 488 613 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 43,043 57 1- to 4-family 16,683 18,378 20,005 20,079 20,005 20,263 20,728 21,083 58 Multifamily 2,612 3,426 4,344 4,344 4,344 4,344 4,343 5,042 59 Commercial 5,271 6,161 7,011 7,056 7,011 7,115 7,303 7,542 60 Farm 6,964 8,675 8,940 8,856 8,940 8,770 9,148 9,376 61 Individual and others4 218,060 253,343 276,633 272,349 276,633 278,204 279,605 280,917 67 1- to 4-family5 138,284 167,297 185,170 182,199 185,170 185,479 185,515 185,782 63 Multifamily 27,345 27,982 30,755 30,068 30,755 31,275 31,868 31,260 64 Commercial 26,661 30,517 31,895 31,381 31,895 32,629 33,222 34,456 65 Farm 25,770 27,547 28,813 28,701 28,813 28,821 29,000 29,419 1. Includes loans held by nondeposit trust companies but not bank trust NOTE. Based on data from various institutional and governmental sources, with departments. some quarters estimated in part by the Federal Reserve in conjunction with the 2. Outstanding principal balances of mortgages backing securities insured or Federal Home Loan Bank Board and the Department of Commerce. Separation of guaranteed by the agency indicated. nonfarm mortgage debt by type of property, if not reported directly, and 3. Outstanding balances on FNMA's issues of securities backed by pools of interpolations and extrapolations when required, are estimated mainly by the conventional mortgages held in trust. The program was implemented by FNMA in Federal Reserve. Multifamily debt refers to loans on structures of five or more October 1981. units. 4. Other holders include mortgage companies, real estate investment trusts, state and local credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and U.S. agencies for which amounts are small or for which separate data are not readily available. 5. Includes a new estimate of residential mortgage credit provided by individuals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • January 1984 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1983 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Apr. May June July Aug. Sept. Oct. Nov. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 344,748 347,189 353,012 358,020 363,662 367,604 371,561 376,390 By major holder 2 Commercial banks 147,013 147,622 152,069 152,408 153,471 156,603 159,666 163,313 165,971 168,352 170,823 3 Finance companies 76,756 89,818 94,322 94,675 95,364 96,349 97,319 97,708 97,274 97,370 97,522 4 Credit unions 44,041 45,954 47,253 47,505 47,838 48,652 49,139 50,121 51,123 51,767 52,578 5 Retailers2 28,448 29,551 30,202 27,455 27,541 27,804 27,900 28,067 28,319 28,713 29,668 6 Savings and loans 9,911 11,598 13,891 15,551 15,842 16,207 16,369 16,615 17,130 17,624 18,080 7 Gasoline companies 4,468 4,403 4,063 3,980 3,943 4,159 4,356 4,457 4,338 4,243 4,157 8 Mutual savings banks 2,835 2,751 2,998 3,174 3,190 3,238 3,271 3,381 3,449 3,492 3,562 By major type of credit 9 Automobile 116,838 125,331 130,227 131,976 133,640 136,183 138,689 141,677 142,477 143,621 144,663 1 1 1 2 1 0 Co D I m n i d r m e ir c e e t r c c t l i o a p a l a n b p s a e n r ks 2 3 6 6 5 1 , , , 3 2 5 0 3 3 3 3 6 2 3 5 4 3 8 , , , 3 7 0 7 0 8 5 6 1 2 3 58 3 5 , , , 8 6 1 5 7 7 1 3 8 59,29 ( ( 1 3 3 ) ) 60,38 ( ( 4 3 3 ) ) 61,87 ( ( 0 3 3 ) ) 63,42 ( ( 5 3 3 ) ) 66,06 ( ( 5 3 3 ) ) 67,41 ( ( 3 3 3 ) ) 68,8 ( 2 ( 8 3 3 ) ) 70,03 ( ( 4 3 3 ) ) 13 Credit unions 21,060 21,975 22,596 22,721 22,880 23,269 23,502 23,972 24,451 24,759 25,147 14 Finance companies 34,242 45,275 48,780 49,964 50,376 51,044 51,762 51,640 50,613 50,034 49,482 15 Revolving 58,352 62,819 67,184 63,521 63,459 64,899 65,856 66,913 67,904 68,921 70,742 16 Commercial banks 29,765 32,880 36,688 35,651 35,536 36,515 37,173 37,973 38,848 39,576 40,573 17 Retailers 24,119 25,536 26,433 23,890 23,980 24,225 24,327 24,483 24,718 25,102 26,012 18 Gasoline companies 4,468 4,403 4,063 3,980 3,943 4,159 4,356 4,457 4,338 4,243 4,157 19 Mobile home 17,322 18,373 18,988 19,400 19,448 19,647 19,750 19,882 20,087 20,256 20,366 20 Commercial banks 10,371 10,187 9,684 9,624 9,581 9,651 9,717 9,741 9,766 9,767 9,761 21 Finance companies 3,745 4,494 4,965 4,970 4,976 4,995 4,982 5,012 5,038 5,062 5,043 22 Savings and loans 2,737 3,203 3,836 4,303 4,384 4,485 4,530 4,598 4,741 4,878 5,004 23 Credit unions 469 489 503 503 507 516 521 531 542 549 558 24 Other 120,960 125,174 128,399 129,851 130,642 132,283 133,725 135,190 137,136 138,763 140,619 25 Commercial banks 45,341 46,474 46,846 47,842 47,970 48,567 49,351 49,534 49,944 50,181 50,455 26 Finance companies 38,769 40,049 40,577 39,741 40,012 40,310 40,575 41,056 41,623 42,274 42,997 27 Credit unions 22,512 23,490 24,154 24,281 24,451 24,867 25,116 25,618 26,130 26,459 26,873 28 Retailers 4,329 4,015 3,769 3,565 3,561 3,579 3,573 3,584 3,601 3,611 3,656 29 Savings and loans 7,174 8,395 10,055 11,248 11,458 11,722 11,839 12,017 12,389 12,746 13,076 30 Mutual savings banks 2,835 2,751 2,998 3,174 3,190 3,238 3,271 3,381 3,449 3,492 3,562 Net change (during period)4 31 Total 1,448 18,217 2,418 2,271 2,696 4,406 4,840 3,388 2,375 4,885 4,671 By major holder 32 Commercial banks -7,163 607 1,111 1,186 1,540 2,422 2,766 2,317 1,829 2,629 2,749 33 Finance companies 8,438 13,062 1,024 -520 362 470 909 239 -721 620 205 34 Credit unions -2,475 1,913 197 708 288 573 662 510 646 942 912 35 Retailers2 329 1,103 -91 147 169 368 272 5 245 150 251 36 Savings and loans 1,485 1,682 201 394 374 456 188 147 507 376 438 37 Gasoline companies 739 -65 -51 299 -51 77 5 65 -167 131 58 38 Mutual savings banks 95 -85 27 57 14 40 38 105 36 37 58 By major type of credit 39 Automobile 477 8,495 1,491 689 1,313 1,973 2,421 2,521 285 1,772 1,238 4 4 4 1 2 0 Co D I m n i d r m e ir e c e r t c c t l i o a p a l a n b p s a e n r 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 2 9 2 9 8 7 6 ( ( 13 3 2 ) ) 1,0 ( ( 63 3 6 ) ) 1,2 ( ( 8 3 4 3 ) ) 1,48 ( ( 2 3 3 ) ) 2,35 ( < 93 3 ) ) 1,2 ( 4 ( 33 3 ) ) 1,4 ( ( 939 3 ) ) 1,3 ( ( 02 3 3 ) ) 43 Credit unions -1,184 914 89 341 137 275 328 232 309 451 436 44 Finance companies 7,491 11,033 875 -264 110 414 611 -70 -1,267 -178 -500 45 Revolving 1,415 4,467 501 917 514 1,210 821 313 479 1,145 1,300 46 Commercial banks -97 3,115 650 468 373 806 556 217 404 856 999 47 Retailers 773 1,417 -98 150 192 327 260 31 242 158 243 48 Gasoline companies 739 -65 -51 299 -51 77 5 65 -167 131 58 49 Mobile home 483 1,049 -37 22 17 151 141 70 150 102 107 50 Commercial banks -276 -186 -74 -99 -86 28 68 -14 8 -10 0 51 Finance companies 355 749 -15 8 1 -6 7 15 1 -16 -14 52 Savings and loans 430 466 49 107 98 123 59 64 134 118 111 53 Credit unions -25 20 3 6 4 6 7 5 7 10 10 54 Other -927 4,206 463 643 852 1,072 1,457 484 1,461 1,866 2,026 55 Commercial banks -960 1,133 8 205 187 304 660 -245 174 284 448 56 Finance companies 592 1,280 164 -264 251 62 291 294 545 814 719 57 Credit unions -1,266 975 105 361 147 292 327 273 330 481 466 58 Retailers -444 -314 7 -3 -23 41 12 -26 3 -8 8 59 Savings and loans 1,056 1,217 152 287 276 333 129 83 373 258 327 60 Mutual savings banks 95 -85 27 57 14 40 38 105 36 37 58 • These data have been revised from December 1980 through February 1983. 4? For 1982 and earlier, net change equals extensions, seasonally adjusted less 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, and scheduled to be repaid (or with the option of repayment) in two or more NOTE: Total consumer noninstallment credit outstanding—credit scheduled to installments. be repaid in a lump sum, including single-payment loans, charge accounts, and 2. Includes auto dealers and excludes 30-day charge credit held by travel and service credit—amounted to, not seasonally adjusted, $74.8 billion at the end of entertainment companies. 1980, $80.6 billion at the end of 1981, and $85.9 billion at the end of 1982. 3. Not reported after December 1982. 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 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks' 1 14.30 16.54 16.83 13.90 13.50 13.46 ? 15.47 18.09 18.65 16.57 16.28 16.39 3 14.99 17.45 18.05 15.84 15.58 15.47 4 1177..3311 1177..7788 1188..5511 1188..7799 1188..7755 1188..7755 Auto finance companies J New car 14.82 16.17 16.15 11.94 11.57 11.84 12.77 13.62 13.54 13.50 6 Used car 19.10 20.00 20.75 18.76 18.58 18.28 18.25 18.21 18.15 18.16 OTHER TERMS3 Maturity (months) 7 New car 45.0 45.4 46.0 45.4 45.6 45.7 45.9 46.2 46.2 46.3 8 Used car 34.8 35.8 34.0 37.9 38.0 38.0 38.0 38.0 38.0 38.0 Loan-to-value ratio 9 New car 87.6 86.1 85.3 86.0 87 87 87 87 86 86 10 Used car 94.2 91.8 90.3 92.0 92 93 93 93 93 93 Amount financed (dollars) 11 New car 6,322 7,339 8,178 8,572 8,512 8,642 8,724 8,792 8,982 9,118 12 Used car 3,810 4,343 4,746 4,984 5,039 5,052 5,103 5,144 5,213 5,316 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 NonfinancialS tatistics • January 1984 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 11998800 11998811 11998822 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 434.8 495.2 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 Private domestic nonfinancial sectors 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 265.0 6 Debt capital instruments 171.1 199.7 211.2 192.0 158.4 152.4 189.9 179.3 137.5 139.7 166.1 223.7 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 60.9 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 79.9 142.0 10 Home mortgages 94.0 112.2 120.0 96.7 75.9 56.6 99.2 92.6 59.2 55.8 58.6 106.7 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 7.8 12 Commercial 18.1 21.7 23.9 20.2 24.6 20.0 20.9 25.2 23.9 21.4 18.6 27.2 13 Farm 7.1 7.2 11.8 9.3 9.7 5.2 7.6 9.3 10.1 5.9 4.4 .2 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 41.3 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 3.8 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 15.0 19 By borrowing sector 262.6 316.2 348.6 264.0 289.8 234.1 278.7 304.6 275.1 249.9 219.3 265.0 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 51.3 21 Households 137.3 169.4 176.4 117.5 120.6 86.3 121.3 139.8 101.3 87.6 86.1 139.8 22 Farm 12.3 14.6 21.4 14.4 16.3 9.0 12.8 20.1 12.5 9.0 9.1 -1.1 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 40.0 24 Corporate 69.7 80.6 96.0 78.1 103.7 72.7 82.3 95.8 111.5 89.3 56.0 34.9 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 18.7 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 14.9 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 -4.6 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 4.0 30 Total domestic plus foreign 332.9 403.6 406.2 370.4 404.4 411.0 397.9 424.4 384.5 369.6 453.4 513.9 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 70.8 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 67.9 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 70.4 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 2.9 37 Corporate bonds 10.1 7.5 7.8 7.1 -.8 2.3 3.1 -.3 -1.4 -1.2 5.8 12.2 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 -5.1 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 70.4 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 2.9 45 Commercial banks 1.1 1.3 1.6 .5 .4 1.2 .3 .2 .5 .7 1.7 .8 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 -10.8 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 378.7 478.2 488.7 433.7 489.8 480.3 462.0 511.8 467.9 459.4 502.1 584.7 51 U.S. government securities 79.9 90.5 84.8 122.9 133.0 225.9 132.0 131.8 134.3 167.6 284.0 298.2 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 60.9 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 37.5 54 Mortgages 126.2 150.2 163.5 134.9 113.9 83.0 137.0 131.1 96.6 87.3 79.8 142.0 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 13.6 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 -12.3 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 6.1 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 87.1 60 Mutual funds .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.8 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 48.3 62 Nonfinancial corporations 2.7 -.1 -7.8 12.9 -11.5 11.4 18.8 .9 -23.8 7.0 15.8 38.2 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 nonfinancial sectors 319.4 369.8 386.0 343.2 377.2 395.3 371.3 392.4 362.0 356.8 443344..88 449955..22 By public agencies and foreign 7 Total net advances 79.3 102.3 7755..22 97.0 9977..44 110099..33 7777..22 111133..88 8811..00 110077..99 111100..88 112277..55 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 52.9 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 80.7 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 6.8 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 8.2 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 69.2 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 37.5 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 4400..44 4455..22 4499..66 6611..33 6688..44 6677..99 12 Foreign 13.5 33.8 20.2 27.2 27.2 15.7 26.7 31.9 22.5 12.8 18.6 18.7 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 332233..00 411.0 445544..33 14 U.S. government securities 45.1 54.3 91.1 107.2 115.9 207.9 132.7 100.6 131.1 149.9 265.8 245.3 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 60.9 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 33.7 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 78.1 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 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 351.1 71 Commercial banking 87.8 129.0 123.1 101.1 103.6 108.5 146.5 99.6 107.6 109.7 107.1 127.4 n Savings institutions 78.5 72.8 56.7 54.9 27.2 30.6 72.9 41.5 12.8 29.5 31.0 128.5 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 93.0 107.4 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 -12.2 75 Sources of funds 258.8 302.3 294.7 262.3 305.2 271.2 282.8 317.3 293.1 272.8 268.9 351.1 76 Private domestic deposits and RPs 139.0 141.0 142.0 168.6 211.7 173.4 174.2 213.8 209.6 163.4 182.7 210.2 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 2.9 78 Other sources 96.1 123.8 118.1 75.2 55.5 93.5 85.0 61.3 49.8 80.8 105.9 138.0 2.9 Foreign funds 1.4 6.5 27.6 -21.7 -8.7 -27.7 -15.3 -8.7 -8.7 -30.1 -25.4 -17.5 30 Treasury balances 4.3 6.8 .4 -2.6 -1.1 6.1 1.0 6.5 -8.7 -2.1 14.1 7.4 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 89.3 32 Other, net 39.0 48.4 41.0 34.0 -7.9 29.2 38.0 .8 -16.7 27.6 30.7 58.8 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 78.7 122.4 106.1 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 75.0 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 47.1 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 -12.7 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 -10.2 38 Other 10.4 19.9 29.8 32.9 35.4 22.1 32.9 42.7 28.2 26.8 19.6 6.9 39 Deposits and currency 148.6 152.2 151.4 180.0 221.7 179.4 185.5 222.6 220.7 166.2 192.1 231.9 40 Currency 8.3 9.3 7.9 10.3 9.5 8.4 9.7 8.0 11.0 4.5 12.3 14.2 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 55.6 42 Small time and savings accounts 93.6 65.9 59.2 83.1 47.2 137.0 90.2 30.7 63.6 95.1 178.6 295.0 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 -67.5 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 11.0 46 Deposits in foreign countries 1.3 2.0 1.5 1.1 .5 -2.4 1.7 .8 .2 -1.8 -2.9 7.4 47 Total of credit market instruments, deposits and currency 189.1 225.8 270.3 254.4 308.9 279.1 287.5 303.3 314.5 244.9 314.5 337.9 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 24.8 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 77.3 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 20.0 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 87.1 52 Mutual fund shares .9 -.1 .1 5.2 6.8 18.6 4.6 8.1 5.6 13.2 24.0 38.8 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 48.3 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 62.4 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 24.7 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 • January 1984 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1983 MMeeaassuurree 11998800 11998811 11998822 Apr. May June July Aug. Sept.' Oct.' Nov.' Dec. 1 Industrial production1 147.0 151.0 138.6 142.6 144.4 146.4 149.7 151.8 153.8 155.0 156.1 156.9 Market groupings 2 Products, total 146.7 150.6 141.8 144.5 146.2 148.1 150.9 153.2 154.9 155.8 156.9 158.0 3 Final, total 145.3 149.5 141.5 142.8 144.5 146.4 149.0 150.7 152.1 152.9 154.2 155.4 4 Consumer goods 145.4 147.9 142.6 147.7 150.4 152.4 154.8 156.3 157.3 157.1 157.8 158.7 5 Equipment 145.2 151.5 139.8 136.2 136.5 138.2 141.0 143.1 144.9 147.1 149.3 150.8 6 Intermediate 151.9 154.4 143.3 150.8 152.2 154.5 158.1 162.2 165.4 166.5 167.2 167.6 7 Materials 147.6 151.6 133.7 139.7 141.7 143.7 147.8 149.7 152.2 153.9 154.9 155.3 Industry groupings 8 Manufacturing 146.7 150.4 137.6 143.1 145.1 147.4 115500..66 152.8 155.1 156.4 157.2 157.8 Capacity utilization (percent)12 9 Manufacturing 79.6 79.4 71.1 72.9 73.8 74.9 76.4 77.3 78.4 79.0 79.3 79.4 10 Industrial materials industries 80.4 80.7 70.1 72.5 73.5 74.4 76.5 77.4 78.6 79.4 79.8 80.1 11 Construction contracts (1977 = 100)3 107.0 111.0 111.0 129.0 148.0 151.0 137.0 146.0 143.0 139.0 145.0 n.a. 12 Nonagricultural employment, total4 137.4 138.5 136.2 135.4 135.9 136.5 137.0 136.4 138.1 138.4 138.9 139.3 13 Goods-producing, total 110.1 109.4 102.6 99.4 100.2 100.9 101.8 102.2 102.7 103.7 104.4 104.8 14 Manufacturing, total 104.3 103.7 96.9 94.5 95.1 95.6 96.3 96.6 97.0 98.0 98.6 99.1 15 Manufacturing, production-worker ... 99.3 98.0 89.4 86.9 87.6 88.2 89.2 89.5 89.9 91.2 91.9 92.5 16 Service-producing 152.4 154.4 154.7 155.2 155.5 156.1 156.3 155.1 157.5 157.5 157.9 158.2 17 Personal income, total 343.7 386.5 409.3 426.8' 431.6 433.7 436.1' 437.5' 441.5 446.3 449.6 n.a. 18 Wages and salary disbursements 317.7 349.7 367.2 382.2 386.9 389.0 391.9 393.6 396.2 400.5 401.5 n.a. 19 Manufacturing 264.4 287.3 286.2 293.4 296.4 299.2 302.6 304.6' 308.2 310.0 311.9 n.a. 20 Disposable personal income5 333.8 373.7 397.3 417.4 420.5 422.0 429.0' 430.1' 434.1 438.8 442.0 n.a. 21 Retail sales® 303.8 330.6 326.0 364.7 376.1 378.9 380.3 373.7 397.1 385.3 389.7 n.a. Prices7 22 Consumer 246.8 272.4 289.1 295.5 297.1 298.1 299.3 300.3 301.8 302.6 303.1 n.a. 23 Producer finished goods 247.0 269.8 280.7 283.0 284.3 285.0 285.7 286.2 285.1 287.9 286.8 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 1. 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 1983 1983 1983 SSeerriieess Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 138.5 144.5 151.8 156.0 194.6 195.5 196.4 197.3 71.2 73.9 77.3 79.1 2 Mining 116.7 112.3 116.1' 121.0 165.2 165.3 165.4 165.5 70.6 67.9 70.2' 73.1 3 Utilities 163.6 169.6 178.2 179.7 208.5 209.8 211.1 212.4 78.5 80.8 84.4 84.6 4 Manufacturing 138.4 145.2 152.8 157.1 195.7 196.6 197.5 198.4 70.7 73.8 77.4 79.2 5 Primary processing 137.0 145.2 152.8' 157.7 194.3 194.8 195.3 195.8 70.5 74.6 78.3 80.5 6 Advanced processing 139.7 145.1 152.8' 156.7 196.5 197.6 198.6 199.7 71.1 73.5 76.9 78.5 7 Materials 134.8 141.7 149.9 154.7 192.3 192.9 193.4 194.0 70.1 73.5 77.5' 79.8 8 Durable goods 125.2 134.7 144.2 150.4 195.2 195.6 196.0 196.5 64.2 68.9 76.6 9 Metal materials 78.6 84.9 89.3' 93.4 140.2 139.9 139.8 139.6 56.1 60.7 63.9 66.9 10 Nondurable goods 163.7 171.7 179.1' 185.0 217.8 218.8 219.6 220.6 75.2 78.5 81.5' 83.9 11 Textile, paper, and chemical 169.3 179.6 188.C 195.2 229.4 230.7 231.6 232.7 73.8 77.9 81.2 83.9 12 Paper 149.9 153.4 162.8 n.a. 165.3 166.1 166.9 n.a. 90.7 92.3 97.5 n.a. 13 Chemical 204.7 219.4 227.8' n.a. 294.8 296.6 298.3 n.a. 69.4 74.0 76.4 n.a. 14 Energy materials 122.2 121.5 127.4 127.6 153.9 154.3 154.7 155.3 79.5 78.7 82.3 82.2 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 Dec. Apr. May June July Aug. Sept/ Oct/ Nov/ Dec. Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 76.5 69.7 73.1 73.9 74.8 76.3 77.3 78.2 78.7 79.1 79.4 16 Mining 91.8 86.0 88.5 84.0 71.7 67.5 68.2 68.1 69.5 70.2 70.8 71.7 73.0 74.5 17 Utilities 94.9 82.0 86.7 83.8 79.0 80.9 80.9 80.8 83.5 85.0 84.8 83.4 84.2 86.2 18 Manufacturing 87.9 69.0 87.5 75.5 68.9 72.9 73.8 74.9 76.4 77.3 78.4 79.0 79.3 79.4 19 Primary processing 93.7 68.2 91.4 72.6 66.2 73.4 74.6 75.7 77.1 78.1 79.7 80.6 80.4 80.5 20 Advanced processing .... 85.5 69.4 85.9 77.0 70.4 72.5 73.4 74.4 76.0 76.9 77.8 78.0 78.7 79.0 71 Materials 92.6 69.3 88.9 74.2 66.6 72.5 73.5 74.4 76.5 77.4 78.6 79.4 79.8 80.1 22 Durable goods 91.4 63.5 88.4 68.4 59.8 67.7 68.9 70.0 72.1 73.6 75.2 76.2 76.8 76.9 23 Metal materials 97.8 68.0 95.4 59.4 46.8 59.9 61.0 61.2 62.3 64.0 65.5 68.1 66.6 66.1 24 Nondurable goods 94.4 67.4 91.7 77.5 71.6 77.2 78.7 79.6 80.7 81.1 82.9 84.0 83.9 83.7 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 70.0 76.4 78.1 79.2 80.4 80.5 82.6 83.9 83.9 83.9 26 Paper 99.4 72.4 97.9 89.8 87.4 91.0 92.9 93.1 96.7 96.9 99.0 100.1 99.9 n.a. 27 Chemical 95.5 64.2 91.3 70.7 65.4 72.6 74.0 75.3 75.9 75.5 77.8 79.0 79.4 n.a. 28 Energy materials 94.5 84.4 88.7 84.4 78.5 78.9 78.5 78.8 82.6 82.8 81.6 81.3 81.8 83.3 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 June July Aug. Sept. Oct.' Nov.' Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 169,847 172,272 174,451 176,320 176,498 176,648 176,811 176,990 177,151 177,325 2 Labor force (including Armed Forces)1 109,042 110,812 112,384 114,127 114,017' 114,325' 114,438' 114,077 114,235 114,340 3 Civilian labor force 106,940 108,670 110,204 111,905' 111,825' 112,117' 112,229' 111,866 112,035 112,136 Employment 4 Nonagricultural industries2 95,938 97,030 96,125 97,264 97,726' 98,035' 98,568' 98,730 99,349 99,585 5 Agriculture 3,364 3,368 3,401 3,479' 3,499' 3,449' 3,308' 3,240 3,257 3,356 Unemployment 6 Number 7,637 8,273 10,678 11,162' LO.EOO' 10,633' 10,353' 9,896 9,429 9,195 7 Rate (percent of civilian labor force)... 7.1 7.6 9.7 10.0 9.5 9.5 9.2 8.8 8.4 8.2 8 Not in labor force 60,805 61,460 62,067 62,220' 62,481' 62,323' 62,373' 62,913 62,916 62,985 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 90,406 91,156 89,596 89,844 90,152 89,748' 90,851 91,087 91,413 91,644 10 Manufacturing 20,285 20,170 18,853 18,582 18,733 18,793 18,871 19,064 19,182 19,271 11 Mining 1,027 1,132 1,122 1,003 1,017 1,023 1,026 1,044 1,044 1,053 12 Contract construction 4,346 4,176 3,912 3,933 3,974 4,014 4,038 4,060 4,096 4,110 13 Transportation and public utilities 5,146 5,157 5,057 4,992 4,984 4,341 5,031 5,019 5,027 5,024 14 Trade 20,310 20,551 20,547 20,494 20,529 20,580 20,612 20,666 20,705 20,732 15 Finance 5,160 5,301 5,350 5,451 5,465 5,488 5,499 5,503 5,523 5,537 16 Service 17,890 20,547 20,401 19,668 19,770 19,835 19,913 19,956 20,051 20,122 17 Government 16,241 16,024 15,784 15,721 15,680 15,674' 15,861 15,775 15,785 15,795 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 • January 1984 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1982 1983 O pro- 11998822 por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept/ Oct. NOV.P Index <1967 = 100) MAJOR MARKET 1 Total index 100.00 138.6 135.2 137.4 138.1 140.0 142.6 144.4 146.4 149.7 151.8 153.8 155.0 156.1 2 Products 60.71 141.8 139.9 140.9 140.3 141.6 144.5 146.2 148.1 150.9 153.2 154.9 155.8 156.9 3 Final products 47.82 141.5 139.5 140.1 138.9 139.9 142.8 144.5 146.4 149.0 150.7 152.1 152.9 154.2 4 Consumer goods 27.68 142.6 142.0 143.6 143.4 144.3 147.7 150.4 152.4 154.8 156.3 157.3 157.1 157.8 5 Equipment 20.14 139.8 136.1 135.3 132.7 133.8 136.2 136.5 138.2 141.0 143.1 144.9 147.1 149.3 6 Intermediate products 12.89 143.3 141.5 143.7 145.3 147.8 150.8 152.2 154.5 158.1 162.2 165.4 166.5 167.2 7 Materials 39.29 133.7 127.8 132.0 134.9 137.6 139.7 141.7 143.7 147.8 149.7 152.2 153.9 154.9 Consumer goods 8 Durable consumer goods 7.89 129.2 125.9 131.6 134.4 136.3 140.5 145.5 149.2 152.9 154.2 157.5 157.1 156.7 9 Automotive products 2.83 129.5 128.7 136.2 144.3 142.6 144.9 152.2 160.0 167.0 168.1 172.9 171.0 171.9 10 Autos and utility vehicles 2.03 99.0 99.0 107.0 120.8 116.4 117.8 124.9 135.4 145.4 147.0 153.1 149.2 150.1 11 Autos 1.90 86.6 87.9 97.1 107.3 99.9 102.7 107.4 118.3 129.8 132.0 135.0 129.6 129.4 12 Auto parts and allied goods .80 206.9 204.0 210.2 203.9 209.3 213.6 221.5 222.6 221.9 221.8 223.1 226.2 227.3 13 Home goods 5.06 129.1 124.3 129.1 128.8 132.8 138.1 141.8 143.2 144.9 146.4 148.8 149.3 148.1 14 Appliances, A/C, and TV 1.40 102.6 94.2 109.5 105.8 105.0 106.1 112.8 114.4 116.2 121.2 125.2 130.8 125.9 15 Appliances and TV 1.33 104.6 98.3 112.9 108.8 108.5 109.7 116.1 118.4 119.7 125.0 129.7 135.1 130.2 16 Carpeting and furniture 1.07 149.7 150.8 149.0 156.7 168.3 180.5 181.9 185.6 187.3 187.5 186.3 185.5 184.6 17 Miscellaneous home goods 2.59 135.0 129.8 131.4 129.7 133.3 137.9 140.9 141.3 143.0 143.2 146.1 144.4 145.1 18 Nondurable consumer goods 19.79 148.0 148.4 148.3 147.0 147.5 150.5 152.3 153.6 155.6 157.1 157.2 157.1 158.2 19 Clothing 4.29 20 Consumer staples 15.50 159.0 158.8 158.6 157.4 158.1 161.1 162.8 164.3 166.1 168.0 167.6 167.3 168.2 21 Consumer foods and tobacco 8.33 149.7 149.5 150.9 149.5 148.4 150.9 153.2 155.9 156.6 156.3 154.6 155.5 22 Nonfood staples 7.17 169.7 169.6 167.6 166.5 169.4 172.9 174.0 174.1 177.2 181.6 182.7 180.9 181.9 23 Consumer chemical products .... 2.63 219.9 220.9 222.6 220.9 225.6 225.5 227.8 229.0 233.8 239.7 240.0 239.7 239.9 24 Consumer paper products 1.92 127.7 128.3 127.1 127.9 128.1 129.2 128.6 130.1 132.6 137.4 138.2 137.6 138.1 25 Consumer energy products 2.62 150.2 148.4 142.2 140.2 143.3 152.2 153.4 151.2 153.2 155.7 157.7 153.6 155.9 2266 11..4455 117700..88 116699..33 116644..11 116622..99 116666..11 117755..55 117744..33 117700..55 117733..22 117799..99 118822..88 117755..66 Equipment 27 Business 12.63 157.9 148.1 146.6 142.7 143.7 146.9 147.7 150.2 153.3 156.6 158.7 161.5 164.4 28 Industrial 6.77 134.9 117.9 118.4 113.7 113.1 113.5 114.5 116.3 119.9 124.3 125.6 127.0 129.4 29 Building and mining 1.44 214.2 171.9 173.8 153.6 145.3 141.8 146.2 148.7 154.4 159.2 160.8 166.9 175.2 30 Manufacturing 3.85 107.2 97.0 97.6 97.9 99.7 101.7 102.5 105.0 108.9 113.3 115.0 115.3 115.9 31 Power 1.47 129.9 119.7 118.3 116.0 116.2 116.6 115.0 114.1 114.6 119.0 118.8 118.5 119.8 32 Commercial transit, farm 5.86 184.4 183.0 179.2 176.1 179.2 185.4 186.1 189.5 191.9 194.0 196.9 201.4 204.7 33 Commercial 3.26 253.5 258.6 254.9 251.2 255.7 264.3 265.0 270.9 276.0 277.4 281.7 288.3 294.0 34 Transit 1.93 103.9 96.2 90.8 88.2 90.1 92.0 92.6 93.2 92.0 95.9 97.6 100.0 99.4 35 Farm .67 80.5 65.1 66.0 63.4 63.4 70.2 71.3 70.4 70.8 70.8 70.6 70.9 73.6 36 Defense and space 7.51 109.4 115.9 116.4 116.1 117.0 118.2 117.6 118.0 120.4 120.2 121.8 122.9 123.9 Intermediate products 37 Construction supplies 6.42 124.3 123.0 127.0 129.7 133.1 136.4 138.4 142.1 145.8 149.0 151.4 152.3 152.7 38 Business supplies 6.47 162.1 159.8 160.3 160.9 162.3 165.2 166.0 166.8 170.4 175.3 179.3 180.7 181.6 39 Commercial energy products 1.14 181.1 182.4 180.6 178.6 180.3 183.3 183.1 181.4 185.2 186.9 190.2 187.0 191.2 Materials 40 Durable goods materials 20.35 125.0 116.5 121.5 125.3 128.7 132.4 134.7 137.0 141.1 144.2 147.4 149.5 150.9 41 Durable consumer parts 4.58 95.3 91.1 96.2 101.6 104.0 106.5 108.5 109.5 115.6 119.9 123.1 124.8 126.0 42 Equipment parts 5.44 166.8 155.3 157.5 158.8 162.5 167.2 170.6 175.8 180.8 183.6 186.0 188.5 193.4 43 Durable materials n.e.c 10.34 116.2 107.4 113.8 118.2 121.9 125.4 127.5 128.7 131.5 134.2 137.8 139.9 139.5 44 Basic metal materials 5.57 79.9 68.7 78.1 82.4 86.0 87.8 89.3 89.6 90.8 93.1 94.8 98.2 96.4 45 Nondurable goods materials 10.47 157.5 155.6 159.7 164.0 167.5 168.7 172.1 174.3 177.0 178.0 182.3 185.0 185.1 46 Textile, paper, and chemical materials 7.62 161.1 160.0 163.7 170.0 174.3 175.9 180.2 182.8 186.1 186.4 191.6 194.9 195.3 47 Textile materials 1.85 102.2 102.1 104.7 106.4 110.6 110.6 114.6 116.0 119.0 121.5 123.1 125.7 123.5 48 Paper materials 1.62 145.6 144.1 150.1 150.1 149.5 150.8 154.4 155.0 161.1 161.8 165.5 167.5 167.5 49 Chemical materials 4.15 193.5 192.0 195.4 206.2 212.5 214.9 219.6 223.6 225.9 225.1 232.4 236.5 238.2 50 Containers, nondurable 1.70 161.4 155.2 162.1 159.6 163.8 163.2 164.3 166.1 166.5 170.6 173.8 175.9 177.4 51 Nondurable materials n.e.c 1.14 127.9 127.2 129.6 130.5 127.7 129.1 129.7 129.9 131.3 133.0 132.7 132.3 128.5 52 Energy materials 8.48 125.1 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 126.1 127.1 53 Primary energy 4.65 116.0 113.5 116.5 115.4 114.4 113.9 113.8 112.6 115.4 113.9 112.9 114.2 114.6 54 Converted fuel materials 3.82 136.3 128.9 130.8 129.6 131.1 131.0 129.9 132.9 142.7 145.2 142.8 140.7 142.3 Supplementary groups 55 Home goods and clothing 9.35 119.6 118.2 120.8 119.9 122.0 126.3 129.2 130.2 132.3 133.3 135.5 136.0 136.1 56 Energy, total 12.23 135.7 132.2 132.4 131.0 131.9 133.9 133.8 133.6 138.5 139.4 139.1 137.7 139.2 57 Products 3.76 159.6 158.7 153.8 151.9 154.5 161.7 162.4 160.4 162.9 165.2 167.5 163.7 166.6 58 Materials 8.48 125.1 120.4 123.0 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 126.1 127.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1982 1983 SIC 1982 Grouping code por- avg. tion Dec. Jan. Feb/ Mar. Apr. May June July Aug. Sept/ Oct. Nov.? Dec/ Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 146.3 140.1 141.3 137.5 137.7 138.9 139.7 139.6 143.8 146.0 146.5 146.2 148.2 151.7 2 Mining 6.36 126.1 118.4 121.9 115.6 112.6 111.6 112.8 112.6 115.0 116.1 117.1 118.6 120.9 123.4 3 Utilities 5.69 168.7 164.2 163.1 162.0 165.8 169.3 169.7 169.8 176.0 179.3 179.3 176.9 178.8 183.4 4 Electric 3.88 190.5 185.6 184.4 183.0 188.2 192.7 192.9 192.0 200.9 205.4 204.5 201.2 203.8 210.1 5 Manufacturing 87.95 137.6 134.5 136.7 138.2 140.4 143.1 145.1 147.4 150.6 152.8 155.1 156.4 157.2 157.8 6 Nondurable 35.97 156.2 155.6 157.4 159.0 160.7 163.3 165.4 167.8 170.6 172.9 174.6 175.8 176.3 176.3 7 Durable 51.98 124.7 119.9 122.5 123.9 126.3 129.1 131.0 133.2 136.8 138.8 141.6 143.0 144.0 145.0 Mining 8 Metal 10 .51 82.4 74.9 81.7 75.1 75.2 79.8 84.4 82.9 82.5 80.9 78.7 83.7 87.7 9 Coal 11.12 .69 142.7 129.7 144.8 136.5 127.3 125.3 125.6 124.6 139.9 141.2 140.5 142.7 144.8 145.2 10 Oil and gas extraction 13 4.40 131.1 122.9 124.6 117.0 114.4 112.2 112.5 112.6 113.9 114.7 116.3 117.4 119.4 123.0 11 Stone and earth minerals 14 .75 112.1 111.7 112.8 115.7 114.0 117.7 122.5 121.7 121.2 125.0 126.5 127.4 130.0 Nondurable manufactures 12 Foods 20 8.75 151.1 152.8 154.4 153.0 152.0 153.7 155.6 157.7 159.9 159.3 158.2 157.6 13 Tobacco products 21 .67 118.0 109.9 104.7 108.5 113.4 114.8 112.9 120.0 112.9 117.1 112.7 109.1 14 Textile mill products 22 2.68 124.5 122.2 125.8 130.7 131.9 136.6 139.6 141.8 146.7 147.4 148.7 149.6 147.5 15 Apparel products 23 3 31 16 Paper and products 26 3.21 150.8 151.1 158.8 155.6 156.3 157.0 161.5 163.0 165.1 168.6 170.4 172.1 172.5 175.0 17 Printing and publishing 27 4.72 144.1 142.8 141.3 144.0 145.9 145.7 145.2 147.4 152.0 157.8 161.7 162.7 163.1 163.2 18 Chemicals and products 28 7.74 196.1 195.9 197.6 202.3 205.7 208.5 211.0 214.7 218.3 220.3 224.1 228.1 228.3 19 Petroleum products 29 1.79 121.8 118.7 113.5 111.7 114.8 120.6 123.8 123.0 124.3 123.2 125.1 123.6 124.2 119.8 20 Rubber and plastic products 30 2.24 254.7 249.7 256.2 264.0 272.0 283.0 288.0 293.8 2%. 1 306.9 310.9 313.2 315.4 21 Leather and products 31 .86 60.9 56.0 59.5 61.7 59.4 58.7 59.6 60.1 62.3 64.4 64.2 64.8 66.0 Durable manufactures 22 Ordnance, private and government 19.91 3.64 86.9 92.5 93.5 93.3 91.9 93.2 92.6 93.3 95.2 96.8 98.0 98.8 99.5 100.7 23 Lumber and products 24 1.64 112.6 121.4 130.0 130.2 128.7 132.1 135.8 137.4 141.3 141.6 142.3 141.7 142.0 24 Furniture and fixtures 25 1.37 151.9 153.7 150.0 154.0 161.0 167.7 169.6 173.1 175.2 179.0 180.7 181.5 180.2 25 Clay, glass, stone products 32 2.74 128.2 125.4 128.0 131.8 135.6 138.3 139.2 141.7 145.8 147.9 151.7 151.9 153.9 26 Primary metals 33 6.57 75.3 63.5 73.1 77.9 81.2 83.1 84.9 84.8 85.5 87.5 90.6 95.1 92.0 91.1 27 Iron and steel 331.2 4.21 61.7 46.6 59.0 64.3 66.9 68.5 69.5 69.7 71.8 75.1 78.2 84.0 80.5 28 Fabricated metal products 34 5.93 114.8 107.3 107.6 110.3 113.9 115.3 115.5 118.5 122.7 126.0 127.4 127.2 129.3 129.7 29 Nonelectrical machinery 35 9.15 149.0 139.2 138.0 136.2 138.6 143.1 146.1 149.5 154.2 157.3 158.3 159.5 162.9 163.0 30 Electrical machinery 36 8.05 169.3 165.5 169.5 168.9 173.8 177.2 180.1 182.4 188.3 189.2 195.8 198.7 200.6 203.7 31 Transportation equipment 37 9.27 104.9 103.7 106.3 109.6 110.1 111.4 113.8 116.6 119.7 121.1 124.7 125.5 125.8 128.2 32 Motor vehicles and parts 371 4.50 109.8 108.8 113.9 123.0 123.2 125.5 130.4 136.2 142.3 144.3 150.9 150.9 152.5 157.1 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 100.4 98.9 99.1 97.0 97.7 98.1 98.1 98.1 98.5 99.2 100.0 101.6 100.5 101.0 34 Instruments 38 2.11 161.9 155.2 154.5 153.4 154.0 155.1 156.0 156.1 159.3 161.6 163.6 164.5 165.1 167.2 35 Miscellaneous manufactures 39 1.51 137.0 128.2 131.3 133.9 136.9 145.0 149.0 151.0 153.7 153.1 151.7 150.4 151.6 152.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 579.6 572.9 578.1 578.4 584.1 592.6 601.8 610.5 620.5 626.6 637.0 639.1 643.1 37 Final 390.9 451.1 445.8 448.3 447.3 451.3 457.7 465.6 471.8 478.2 481.8 489.9 491.3 493.4 38 Consumer goods . 277.5 308.0 306.8 310.9 312.0 313.8 318.8 325.6 330.4 333.7 336.7 341.6 340.3 341.7 39 Equipment 113.4 143.1 138.9 137.4 135.3 137.5 138.9 140.0 141.4 144.5 145.1 148.4 151.0 151.6 40 Intermediate 116.6 128.5 127.1 129.8 131.1 132.8 134.9 136.2 138.7 142.3 144.8 147.1 147.8 149.8 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1984 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1982 1983 IItteemm 11998800 11998811 11998822 Dec. Mar. Apr. May June July Aug.' Sept.' Oct.' Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,191 986 1,001 1,326 1,467 1,536 1,635 1,761 1,782 1,652 1,506 1,630 1,650 2 1-family 710 564 546 753 859 841 940 1,013 920 874 837 880 906 3 2-or-more-family 480 421 454 573 608 695 695 748 862 778 669 750 744 4 Started 1,292 1,084 1,062 1,280 1,605 1,506 1,807 1,736 1,804 1,904 1,664 1,650 1,756 5 1-family 852 705 663 842 1,008 1,001 1,183 1,127 1,032 1,135 1,031 1,010 1,065 6 2-or-more-family 440 379 400 438 597 505 624 609 772 769 633 640 691 7 Under construction, end of period1 896 682 720 730 828 859 900 933 963 977 991 995 t 8 1-family 515 382 400 411 472 489 518 532 537 542 544 542 9 2-or-more-family 382 301 320 319 356 370 382 400 425 435 446 453 10 Completed 1,502 1,266 1,006 1,035 1,147 1,164 1,353 1,386 1,432 1,729 1,470 1,588 n1.a. 11 1-family 957 818 631 647 788 803 851 959 1,000 1,050 970 1,036 12 2-or-more-family 545 447 374 388 359 361 502 427 432 679 500 552 \ 13 Mobile homes shipped 222 241 239 243 276 291 298 308 299 305 302 291 Merchant builder activity in 1-family units 14 Number sold 545 436 413 529 611 635 665 658 594' 544 597 635 638 15 Number for sale, end of period1 342 278 255 251 262 266 273 284 289' 296 299 301 308 Price (thousands of dollars)2 Median 16 Units sold 64.7 68.8 69.3 71.7 72.5 74.7 74.5 75.8 75.2 76.8 80.8 75.7 75.9 Average 17 Units sold 76.4 83.1 83.8 86.7 86.2 87.6 88.8 90.9 89.2 91.3 97.0 88.7 92.1 EXISTING UNITS (1-family) 18 Number sold 2,974 2,418 1,991 2,260 2,710 2,730 2,900 2,940 2,790 2,710 2,720 2,610 2,630 Price of units sold (thousands of dollars)2 19 Median 62.1 66.1 67.7 67.8 68.9 68.8 69.2 71.4 71.8 71.5 69.9 69.8 70.3 20 Average 72.7 78.0 80.4 80.6 81.1 81.3 81.7 84.7 84.2 84.7 82.8 83.0 83.2 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,712 239,418 232,048 240,207 241,908 247,360 254,763 264,321 274,205' 281,997 285,384 271,914 271,868 22 Private 175,700 186,069 180,979 190,768 194,865 199,462 206,029 214,729 222,759' 228,529 232,561 223,015 223,229 23 Residential 87,262 86,567 74,809 86,018 96,127 101,961 107,494 113,524 122,297' 127,136 129,142 121,736 113,271 24 Nonresidential, total 88,438 99,502 106,170 104,750 98,738 97,501 98,535 101,205 100,462' 101,393 103,419 101,279 104,958 Buildings 25 Industrial 13,839 17,031 17,346 15,631 14,263 13,223 13,047 13,136 12,227 14,227 13,166 10,532 11,533 26 Commercial 29,940 34,243 37,281 36,934 35,469 33,619 33,291 35,898 35,871 36,277 36,901 36,118 38,019 27 Other 8,654 9,543 10,507 11,784 11,598 10,770 11,237 10,974' 11,250 12,038 12,564 12,279 12,374 28 Public utilities and other 36,005 38,685 41,036 40,401 37,408 39,889 40,960 41,197 41,114' 38,851 40,788 42,350 43,032 29 Public 55,011 53,346 51,068 49,439 47,043 47,897, 48,734 49,592 51,446' 53,469 52,823 48,899 48,639 30 Military 1,880 1,966 2,205 2,432 2,541 2,784, 2,255 1,894 2,655' 2,258 2,705 2,515 2,619 31 Highway 13,770 13.599 13,521 13,048 11,866 12,900 13,044 12,925 14,091 15,906 15,896 14,6441 14,001 32 Conservation and development 5,089 5,300 5,029 4,625 4,894 5,023 4,548 4,853 5,608' 5,210 5,048 4,258, 3,942 33 Other 34,272 32,481 30,313 29,334 27,742 27,1901 28,887 29,920 29,092' 30,095 29,174 27,482; 28,077 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 16,000jurisdictions 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 an n g th e s f e ro ar m li e 1 r 2 Change ( a f t r o a m nn 3 ua m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm NNNooovvv... 1982 1983 1983 111999888333 11998822 11998833 (((111999666777 NNoovv.. NNoovv.. === 111000000)))''' Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. CONSUMER PRICES2 1 All items 4.6 3.2 .5 .4 5.4 5.3 .4 .4 .5 .4 .3 303.1 ? Food 3.4 2.1 .8 2.8 1.7 1.7 -.1 .2 .3 .5 .1 292.5 3 Energy items 2.1 -.6 10.2 -25.1 21.0 7.1 .3 .7 .7 -.4 .0 419.9 4 All items less food and energy 5.2 4.3 -.3 4.4 3.9 6.2 .6 .5 .5 .5 .4 293.2 Commodities 5.7 5.2 5.4 5.7 2.9 7.1 .7 .5 .6 .6 .3 248.9 6 Services 4.8 3.5 -4.8 3.7 4.6 5.3 .4 .4 .4 .5 .5 344.9 PRODUCER PRICES 7 Finished goods 3.7 .7 5.2 -4.7 3.0 2.5 .1 .4 .2 .3 -.2 286.8 8 Consumer foods 1.9 1.7 .8 4.1 .0 1.5 -.7 .5' .7 1.1 -1.0 261.8 9 Consumer energy 1.4 -8.8 7.0 -35.5 11.4 3.7 .2' .4' .3 -.1 -1.0 778.6 10 Other consumer goods 5.1 2.0 7.9 -2.0 3.1 2.9 .3 .2 .1 .0 .5 242.1 11 Capital equipment 4.0 2.3 3.6 2.0 1.7 2.5 .2 .7 -.3 .3 .0 290.3 V Intermediate materials3 .3 1.5 1.5 -4.7 3.2 5.3 .3' .5' .5 .4 .2 320.1 13 Excluding energy .6 2.5 1.0 .8 2.9 4.0 .4' .3' .3 .2 .3 297.2 Crude materials 14 Foods -.8 6.6 1.3 18.1 .8 5.9 -2.6 4.(K .2 ..22 .0 225522..00 15 Energy 4.9 -5.8 6.4 -9.2 -5.1 -1.5 -.6' -.1' .3 -1.0 .2 781.8 16 Other -8.9 14.7 -8.0 -16.2 61.9 20.2 2.5' .3' 1.8 -.3 1.7 260.3 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers 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 • January 1984 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 QL 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 3,362.2 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 2,181.1 3 Durable goods 214.7 236.1 244.5 243.4 252.1 258.5 277.7 282.8 4 Nondurable goods 668.8 733.9 761.0 766.6 773.0 777.1 799.6 814.8 5 Services 784.5 887.1 986.4 998.9 1,021.8 1,037.4 1,069.7 1,083.5 6 Gross private domestic investment 401.9 474.9 414.5 425.3 377.4 404.1 450.1 501.1 7 Fixed investment 411.7 456.5 439.1 430.2 433.8 443.5 464.6 492.5 8 Nonresidential 308.8 352.2 348.3 342.3 337.0 332.1 336.3 351.0 9 Structures 110.9 133.4 141.9 140.0 138.6 132.9 127.4 130.9 10 Producers' durable equipment 197.8 218.8 206.4 202.2 198.4 199.3 208.8 220.2 11 Residential structures 102.9 104.3 90.8 87.9 96.8 111.3 128.4 141.5 12 Nonfarm 98.1 99.8 86.0 83.4 91.2 106.7 123.3 136.3 13. Change in business inventories -9.8 18.4 -24.5 -4.9 -56.4 -39.4 -14.5 8.5 14 Nonfarm -4.5 10.9 -23.1 -2.3 -53.7 -39.0 -10.3 18.4 15 Net exports of goods and services 24.0 26.3 17.4 .9 5.6 17.0 -8.5 -18.3 16 Exports 338.8 368.8 347.6 346.0 321.6 326.9 327.1 341.1 17 Imports 314.8 342.5 330.2 345.0 316.1 309.9 335.6 359.4 18 Government purchases of goods and services 537.8 595.7 649.2 655.7 679.7 677.4 683.4 698.3 19 Federal 197.0 229.2 258.7 261.7 279.2 273.5 273.7 278.1 20 State and local 340.8 366.5 390.5 394.0 400.5 404.0 409.7 420.2 By major type of product 21 Final sales, total 22,,664411..55 22,,993355..66 33,,009977..55 3,095.6 3,165.9 3,210.9 3,286.6 3,353.7 22 Goods 1,140.6 1,291.8 1,280.8 1,286.7 1,264.8 1,292.2 1,346.8 1.388.9 23 Durable 477.8 528.0 500.8 518.4 474.0 482.7 536.8 568.9 24 Nondurable 662.7 763.9 780.1 768.3 790.8 809.5 810.0 820.0 25 Services 1,225.2 1,374.2 1,511.2 1,527.2 1,560.5 1,588.4 1,623.4 1,651.0 26 Structures 266.0 288.0 281.0 276.9 284.3 290.9 301.9 322.3 27 Change in business inventories -9.8 18.4 -24.5 -4.9 -56.4 -39.4 -14.5 8.5 28 Durable goods -4.1 3.6 -15.5 6.4 -45.0 -38.2 -8.9 13.1 29 Nondurable goods -5.7 14.8 -9.1 -11.3 -11.4 -1.2 -5.7 -4.5 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 1,553.4 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 2,686.9 32 Compensation of employees 1,599.6 1,769.2 1,865.7 1,879.5 1,889.0 1,923.7 1,968.7 2,011.8 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 1,681.5 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 1,353.1 36 Supplement to wages and salaries 243.0 276.0 297.6 299.7 302.9 313.1 321.6 330.3 37 Employer contributions for social insurance 115.0 132.5 140.9 141.5 142.5 148.8 151.5 153.9 38 Other labor income 128.0 143.5 156.6 158.2 160.4 164.3 170.1 176.4 39 Proprietors' income1 117.4 120.2 109.0 103.6 116.2 120.6 127.2 126.7 40 Business and professional1 95.6 89.7 87.4 87.8 90.2 98.4 106.2 111.2 41 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 15.5 42 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 43 Corporate profits1 175.4 192.3 164.8 168.5 161.9 181.8 218.2 248.4 44 Profits before tax3 234.6 227.0 174.2 177.3 167.5 169.7 203.3 229.1 45 Inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -18.3 46 Capital consumption adjustment -16.3 -11.0 -1.1 .1 4.7 13.9 25.6 37.6 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 Ql 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 2,761.9 ? 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 1,681.9 Commodity-producing industries 468.1 509.5 509.2 508.9 499.5 508.6 522.2 537.8 4 354.6 385.3 383.8 384.8 377.4 385.4 397.4 409.2 Distributive industries 330.7 361.6 378.8 381.9 383.5 386.4 394.3 398.9 6 Service industries 297.6 337.7 374.1 381.2 388.5 396.4 407.3 416.4 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 9 117.4 120.2 109.0 103.6 116.2 120.6 127.2 126.7 10 Business and professional1 95.6 89.7 87.4 87.8 90.2 98.4 106.2 111.2 11 Farm1 21.8 30.5 21.5 15.8 26.0 22.2 21.0 15.5 17 Rental income of persons2 31.5 41.4 49.9 50.9 52.3 54.1 54.8 53.9 N 56.8 62.8 66.4 66.4 67.9 68.8 69.3 70.9 14 266.0 341.3 366.2 364.8 363.1 357.2 357.1 369.9 15 Transfer payments 297.6 337.2 374.6 380.4 399.0 398.5 405.3 402.6 16 Old-age survivors, disability, and health insurance benefits 154.2 182.0 204.5 209.3 216.5 217.4 221.1 223.8 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 2,761.9 19 LESS: Personal tax and nontax payments 336.5 387.4 402.1 399.8 404.1 401.8 412.6 400.1 20 EQUALS: Disposable personal income 1,828.8 2,047.6 2,176.5 2,191.5 2,227.8 2,255.9 2,301.0 2,361.7 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 2,245.9 22 EQUALS: Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 115.8 MEMO: Per capita (1972 dollars) ?3 Gross national product 6,478.0 6,584.1 6,399.3 6,393.2 66,,335555..22 66,,338811..55 66,,551188..55 66,,662211..55 74 Personal consumption expenditures 4,092.3 4,161.5 4,179.8 4,178.4 4,204.5 4,225.7 4,318.8 4,330.8 25 Disposable personal income 4,487.0 4,587.0 4,567.0 4,558.0 4,576.0 4,599.0 4,629.0 4,690.0 26 Saving rate (percent) 6.0 6.6 5.8 5.6 5.4 5.4 4.0 4.9 GROSS SAVING 27 Gross saving 405.9 483.8 405.8 397.9 351.3 398.5 420.6 455.4 78 Gross private saving 435.4 509.6 521.6 524.9 526.6 541.5 535.0 587.2 79 Personal saving 110.2 135.3 125.4 123.0 120.8 121.7 91.5 115.8 30 Undistributed corporate profits' 32.0 44.8 37.0 38.9 37.5 48.9 70.1 89.7 31 Corporate inventory valuation adjustment -42.9 -23.6 -8.4 -9.0 -10.3 -1.7 -10.6 -18.3 Capital consumption allowances 37 179.3 202.9 222.0 224.5 222277..77 222288..33 222299..88 223333..11 33 Noncorporate 113.8 126.6 137.2 138.5 140.5 142.6 143.5 148.6 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 -131.8 36 -61.2 -62.2 -147.1 -158.3 -208.2 -183.3 -166.1 -187.3 37 State and local 30.6 35.3 31.3 31.3 32.9 40.4 51.7 55.5 38 Capital grants received by the United States, net 1.2 1.1 .0 .0 .0 .0 .0 .0 39 Gross investment 408.2 478.9 406.2 400.5 355.5 397.4 417.1 457.9 40 Gross private domestic 401.9 474.9 414.5 425.3 377.4 404.1 450.1 501.1 41 Net foreign 6.3 4.0 -8.3 -24.8 -21.9 -6.7 -33.0 -43.2 42 Statistical discrepancy 2.3 -4.9 .5 2.5 4.2 -1.2 -3.5 2.5 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 • January 1984 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 Q3 Q4 Ql Q2 Q3P 1 Balance on current account 421 4,592 -11,211 --66,,559966 -6,621 -3,587 -9,655 -11,976 --88,,114433 -5,546 -3,395 -8,898 -13,996 3 Merchandise trade balance2 -25,544 -28,067 -36,389 --1133,,007788 -11,354 -8,810 -14,661 -18,169 4 Merchandise exports 224,237 237,019 211,217 5522,,224411 48,344 49,506 48,913 50,585 5 Merchandise imports -249,781 -265,086 -247,606 --6655,,331199 -59,698 -58,316 -63,574 -68,754 6 Military transactions, net -2,286 -1,355 179 5544 -26 516 117 -21 7 Investment income, net3 29,570 33,484 27,304 66,,882211 6,008 5,089 5,700 6,928 8 Other service transactions, net 5,738 7,462 5,729 11,,334499 1,182 1,179 1,012 1,347 9 Remittances, pensions, and other transfers -2,347 -2,382 -2,621 -656 -661 -608 -636 -656 10 U.S. government grants (excluding military) -4,709 -4,549 -5,413 -1,086 -1,770 -953 -1,187 -1,405 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,140 -5,078 -5,732 -2,502 -934 -1,053 -1,162 -1,188 12 Change in U.S. official reserve assets (increase, -) -8,155 -5,175 -4,965 -794 -1,949 -787 16 529 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -16 -1,823 -1,371 -434 -297 -98 -303 -209 15 Reserve position in International Monetary Fund -1,667 -2,491 -2,552 -459 -732 -2,139 -212 -88 16 Foreign currencies -6,472 -861 -1,041 99 -920 1,450 531 826 17 Change in U.S. private assets abroad (increase, -)3 -72,757 -100,348 -107,348 -22,803 -16,670 -19,859 488 -5,770 18 Bank-reported claims -46,838 -83,851 -109,346 -20,631 -17,511 -15,935 5,166 -498 19 Nonbank-reported claims -3,174 -1,181 6,976 998 2,337 -2,374 -440 n.a. 20 U.S. purchase of foreign securities, net -3,524 -5,636 -7,986 -3,331 -3,527 -1,808 -3,222 -1,122 21 U.S. direct investments abroad, net3 -19,221 -9,680 3,008 161 2,031 258 -1,016 -4,150 22 Change in foreign official assets in the United States (increase, +) 15,566 5,430 3,172 2,642 1,661 49 1,973 -3,235 23 U.S. Treasury securities 9,708 4,983 5,759 4,834 4,346 3,008 1,955 -692 24 Other U.S. government obligations 2,187 1,289 -670 -71 -556 -371 -170 -363 25 Other U.S. government liabilities4 685 -28 504 -160 130 -270 403 148 26 Other U.S. liabilities reported by U.S. banks -159 -3,479 -2,054 -1,911 -1,717 -1,939 611 -1,870 27 Other foreign official assets5 3,145 2,665 -367 -50 -542 -379 -826 -458 28 Change in foreign private assets in the United States (increase, +)3 39,356 75,248 84,693 14,971 9,856 16,404 8,984 21,722 29 U.S. bank-reported liabilities 10,743 42,154 64,263 10,977 2,823 10,588 919 16,344 30 U.S. nonbank-reported liabilities 6,845 942 -3,104 -425 20 -2,136 134 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,645 2,982 7,004 1,364 2,257 2,912 3,072 1,103 32 Foreign purchases of other U.S. securities, net 5,457 7,171 6,141 420 1,975 2,986 2,628 1,867 33 Foreign direct investments in the United States, net3 13,666 21,998 10,390 2,635 2,781 2,054 2,231 2,408 34 Allocation of SDRs 1,152 1,093 0 00 0 0 0 0 35 Discrepancy 29,556 24,238 41,390 1155,,008822 14,657 8,833 -644 -82 --11,,119900 1,042 -212 792 -1,355 37 Statistical discrepancy in recorded data before seasonal adjustment 29,556 24,238 41,390 1166,,227722 13,615 9,045 -1,436 1,273 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -) -8.155 -5,175 -4,965 -794 -1,950' -787 16 529 39 Foreign official assets in the United States (increase, +) 14,881 5,458 2,668 2,802 1,531 319 1,570 -3,383 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 12,769 13,581 7,420 368 -1,162 -1,397 -3,433 -2,151 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 756 680 644 267 158 42 30 49 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 May June July Aug. Sept. Oct. Dec. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 220,626 233,677 212,193 15,566 17,008 16,629 16,630 17,387 16,951 16,848 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 244,871 261,305 243,952 21,514 21,024 21,950 22,782 22,175 24,763 23,179 3 Trade balance -24,245 -27,628 -31,759 -5,948 -4,016 -5,321 -6,152 -4,788 -7,812 -6,331 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 June July Aug. Sept. Oct. Nov. Dec. 1 Total 26,756 30,075 33,958 33,876 33,373 32,624 33,066 33,273 33,655 33,747 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,131 11,131 11,128 11,128 11,126 11,123 11,121 3 Special drawing rights2 3 2,610 4,095 5,250 5,478 5,496 5,543 5,628 5,641 5,735 5,025 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 9,413 9,475 9,296 9,399 9,554 9,883 11,312 5 Foreign currencies4'5 10,134 9,774 10,212 7,854 7,271 6,657 6,911 6,952 6,914 6,289 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 June July Aug. Sept. Oct. Nov. Dec. 1 Deposits 411 505 328 279 369 248 297 339 360 190 Assets held in custody 2 U.S. Treasury securities1 102,417 104,680 112,544 114,499 118,105 113,476 113,498 116,327 116,398 117,670 3 Earmarked gold2 14,965 14,804 14,716 14,724 14,727 14,693 14,621 14,550 14,475 14,414 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 • January 1984 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 AAsssseett aaccccoouunntt 11998800 Apr. May June July Aug. Sept. Oct.P All foreign countries 1 Total, all currencies 401,135 462,847 469,432 453,296 452,253 465,772 455,802 452,320 460,236 458,871 2 Claims on United States 28,460 63,743 91,768 91,262 91,908 97,810^ 96,915 99,207 101,316 102,474 3 Parent bank 20,202 43,267 61,629 61,792 62,596 65,826 67,683 66,860 65,533 66,919 4 Other 8,258 20,476 30,139 29,470 29,312 31,984' 29,232 32,347 35,783 35,555 5 Claims on foreigners 354,960 378,954 358,258 344,069 342,298 349,819' 340,994 335,040 340,430 337,849 6 Other branches of parent bank 77,019 87,821 91,143 84,839 86,436 88,352 84,869 84,563 89,279 87,533 7 Banks 146,448 150,763 133,640 127,365 124,055 130,285 123,539 119,167' 120,202 117,641 a Public borrowers 28,033 28,197 24,090 25,114 25,547 25,370 25,876 25,185 24,982 24,979 y Nonbank foreigners 103,460 112,173 109,385 106,751 106,260 105,812' 106,710 106,125' 105,967 107,6% 10 Other assets 17,715 20,150 19,406 17,965 18,047 18,143 17,893 18,073 18,490 18,548 n Total payable in U.S. dollars 291,798 350,735 361,712 344,618 343,851 357,405 350,459 348,335 354,570 351,487 12 Claims on United States 27,191 62,142 90,048 88,985 89,552 95,533' 94,501 96,718 98,476 99,915 13 Parent bank 19,896 42,721 60,973 61,156 61,797 64,497 66,255 65,434 63,691 65,390 14 Other 7,295 19,421 29,075 27,829 27,755 31,036' 28,246 31,284 34,785 34,525 15 Claims on foreigners 255,391 276,937 259,646 245,097 243,896 251,259' 245,188 241,343 245,550 241,248 16 Other branches of parent bank 58,541 69,398 73,512 66,337 67,787 69,496 67,160 66,645 71,248 69,314 1/ Banks 117,342 122,110 106,338 98,678 96,071 102,862 97,197 93,832' 95,138 92,059 18 Public borrowers 23,491 22,877 18,374 18,941 19,001 18,681 19,108 18,880 18,455 18,531 iy Nonbank foreigners 56,017 62,552 61,422 61,141 61,037 60,22c 61,723 61,986' 60,709 61,344 20 Other assets 9,216 11,656 12,018 10,536 10,403 10,613 10,770 10,274 10,544 10,324 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 152,408 151,821 155,631 153,209 154,865 156,048 156,803 22 Claims on United States 7,509 11,823 27,354 25,139 24,847 26,279 26,012 29,722 28,935 30,853 23 Parent bank 5,275 7,885 23,017 20,657 20,456 21,384 20,849 22,169 20,816 22,794 24 Other 2,234 3,938 4,337 4,482 4,391 4,895 5,163 7,553 8,119 8,059 25 Claims on foreigners 131,142 138,888 127,734 121,727 121,187 123,835 121,757 119,672 121,530 120,660 26 Other branches of parent bank 34,760 41,367 37,000 32,973 33,361 35,787 35,632 35,555 36,382 36,556 27 Banks 58,741 56,315 50,767 48,301 47,623 48,328 46,643 44,303 45,451 43,888 28 Public borrowers 6,688 7,490 6,240 6,591 6,599 6,570 6,440 6,342 6,274 6,280 29 Nonbank foreigners 30,953 33,716 33,727 33,862 33,604 33,150 33,042 33,472 33,423 33,936 30 Other assets 6,066 6,518 5,979 5,542 5,787 5,517 5,440 5,471 5,583 5,290 31 Total payable in U.S. dollars 99,699 115,188 123,740 113,170 112,585 118,023 116,526 119,377 121,238 121,817 32 Claims on United States 7,116 11,246 26,761 24,374 24,044 25,536 25,180 28,905 27,828 30,095 ii Parent bank 5,229 7,721 22,756 20,354 20,092 21,017 20,434 21,720 20,036 22,371 34 Other 1,887 3,525 4,005 4,020 3,952 4,519 4,746 7,185 7,792 7,724 35 Claims on foreigners 89,723 99,850 92,228 84,981 84,779 88,587 87,450 86,868 89,539 88,253 36 Other branches of parent bank 28,268 35,439 31,648 27,131 27,579 30,025 30,122 30,053 31,409 31,414 37 Banks 42,073 40,703 36,717 33,228 32,801 34,417 33,159 31,718 33,237 31,796 38 Public borrowers 4,911 5,595 4,329 4,522 4,497 4,547 4,420 4,410 4,329 4,346 39 Nonbank foreigners 14,471 18,113 19,534 20,100 19,902 19,598 19,749 20,687 20,564 20,697 40 Other assets 2,860 4,092 4,751 3,815 3,762 3,900 3,8% 3,604 3,871 3,469 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156 142,126 141,021 146,792 142,384 139,422 143,123 141,288 42 Claims on United States 17,751 46,546 59,403 61,417 62,546 66,471' 65,984 63,646 66,522 66,230 43 Parent bank 12,631 31,643 34,653 37,971 39,031 40,497 42,898 40,031 40,127 40,082 44 Other 5,120 14,903 24,750 23,446 23,515 25,974' 23,086 23,615 26,395 26,148 45 Claims on foreigners 101,926 98,057 81,450 77,034 74,817 76,719' 72,683 72,021 72,826 71,268 46 Other branches of parent bank 13,342 12,951 18,720 18,295 18,537 16,658 15,565 15,344 16,764 15,807 47 Banks 54,861 55,151 42,699 39,682 37,589 41,707 37,384 37,360 36,634 35,974 48 Public borrowers 12,577 10,010 6,413 6,388 6,170 5,935 6,538 6,404 6,461 6,527 49 Nonbank foreigners 21,146 19,945 13,618 12,669 12,521 12,4^ 13,196 12,913 12,967 12,960 50 Other assets 4,160 4,505 4,303 3,675 3,658 3,602 3,717 3,755 3,775 3,790 51 Total payable in U.S. dollars 117,654 143,743 139,605 136,192 135,192 140,702 136,253 132,956 136,826 134,667 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 Apr. May June July Aug. Sept. Oct.'' All foreign countries 52 Total, all currencies 401,135 462,847 469,432 453,296 452,253 465,772 455,802 452,320 460,236 458,871 53 To United States 91,079 137,767 178,918 184,071 183,851 191,485 187,665 183,591' 182,609 185,567 54 Parent bank 39,286 56,344 75,561 81,104 80,844 84,482 81,704 77,283' 78,013 85,034 55 Other banks in United States 14,473 19,197 33,368 32,687 31,815 33,672 31,490 29,880 30,941 27,066 56 Nonbanks 37,275 62,226 69,989 70,280 71,192 73,331 74,471 76,428 73,655 73,467 57 To foreigners 295,411 305,630 270,678 251,2% 250,813 256,102 249,823 250,506' 259,486 254,573 58 Other branches of parent bank 75,773 86,396 90,148 84,146 84,903 86,546 83,911 82,903' 88,064 85,566 59 Banks 132,116 124,906 96,739 86,950 84,637 87,153 84,649 85,408' 86,606 84,542 60 Official institutions 32,473 25,997 19,614 18,384 17,199 18,621 18,287 17,766 20,513 19,403 61 Nonbank foreigners 55,049 68,331 64,177 61,816 64,074 63,782 62,976 64,429' 64,303 65,062 62 Other liabilities 14,690 19,450 19,836 17,929 17,589 18,185 18,314 18,223 18,141 18,731 63 Total payable in U.S. dollars 303,281 364,447 379,003 363,592 363,354 376,055 368,499 365,583 373,035 369,912 64 To United States 88,157 134,700 175,431 180,650 180,075 187,987 184,167 179,898' 178,834 181,669 65 Parent bank 37,528 54,492 73,235 79,022 78,578 82,285 79,448 74,969' 75,728 82,637 66 Other banks in United States 14,203 18,883 33,003 32,226 31,222 33,242 31,116 29,334 30,374 26,548 67 Nonbanks 36,426 61,325 69,193 69,402 70,275 72,460 73,603 75,595 72,732 72,484 68 To foreigners 206,883 217,602 192,348 173,556 174,176 178,877 174,733 175,832' 184,384 178,825 69 Other branches of parent bank 58,172 69,299 72,878 66,186 66,664 68,356 67,228 65,842' 70,658 68,064 70 Banks 87,497 79,594 57,355 48,428 47,424 49,916 48,062 49,578' 50,918 48,264 71 Official institutions 24,697 20,288 15,055 13,801 12,641 13,912 13,517 12,999 15,400 14,630 72 Nonbank foreigners 36,517 48,421 47,060 45,141 47,447 46,693 45,926 47,413' 47,408 47,867 73 Other liabilities 8,241 12,145 11,224 9,386 9,103 9,191 9,599 9,853 9,817 9,418 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 152,408 151,821 155,631 153,209 154,865 156,048 156,803 75 To United States 21,785 38,022 53,954 52,883 53,603 56,952 56,959 58,347 56,924 60,903 76 Parent bank 4,225 5,444 13,091 14,343 13,907 14,461 15,011 16,145 16,852 21,385 77 Other banks in United States 5,716 7,502 12,205 12,119 12,773 13,503 12,993 12,462 12,174 10,751 78 Nonbanks 11,844 25,076 28,658 26,421 26,923 28,988 28,955 29,740 27,898 28,767 79 To foreigners 117,438 112,255 99,567 92,460 91,071 91,545 89,198 89,458 92,122 88,657 80 Other branches of parent bank 15,384 16,545 18,361 19,470 20,235 18,376 17,544 17,595 19,365 18,288 81 Banks 56,262 51,336 44,020 38,960 37,594 38,238 37,192 37,571 37,122 35,847 82 Official institutions 21,412 16,517 11,504 10,520 9,413 10,848 10,146 9,588 11,448 10,611 83 Nonbank foreigners 24,380 27,857 25,682 23,510 23,829 24,083 24,316 24,704 24,187 23,911 84 Other liabilities 5,494 6,952 7,546 7,065 7,147 7,134 7,052 7,060 7,002 7,243 85 Total payable in U.S. dollars 103,440 120,277 130,261 120,683 120,324 124,760 123,265 125,656 127,868 128,600 86 To United States 21,080 37,332 53,029 51,993 52,473 56,092 56,081 57,359 55,931 59,824 87 Parent bank 4,078 5,350 12,814 14,212 13,696 14,308 14,812 15,829 16,673 21,145 88 Other banks in United States 5,626 7,249 12,026 11,929 12,439 13,313 12,833 12,223 11,886 10,523 89 Nonbanks 11,376 24,733 28,189 25,852 26,338 28,471 28,436 29,307 27,372 28,156 90 To foreigners 79,636 79,034 73,477 65,485 64,621 65,428 63,818 64,801 68,252 65,277 91 Other branches of parent bank 10,474 12,048 14,300 14,815 15,636 14,117 13,386 13,421 15,166 14,542 9? Banks 35,388 32,298 28,810 23,821 22,960 23,895 23,453 24,447 24,478 23,136 93 Official institutions 17,024 13,612 9,668 8,474 7,306 8,786 8,065 7,630 9,381 8,742 94 Nonbank foreigners 16,750 21,076 20,699 18,375 18,719 18,630 18,914 19,303 19,227 18,857 95 Other liabilities 2,724 3,911 3,755 3,205 3,230 3,240 3,366 3,496 3,685 3,499 Bahamas and Caymans % Total, all currencies 123,837 149,108 145,156 142,126 141,021 146,792 142,384 139,422 143,123 141,288 97 To United States 59,666 85,759 104,425 109,698 108,847 111,631 108,575 104,193 104,641 104,166 98 Parent bank 28,181 39,451 47,081 52,063 51,145 53,626 50,729 46,214 45,468 48,241 99 Other banks in United States 7,379 10,474 18,466 17,451 16,143 16,921 15,495 14,560 16,191 14,294 100 Nonbanks 24,106 35,834 38,878 40,184 41,559 41,084 42,351 43,419 42,982 41,631 101 To foreigners 61,218 60,012 38,274 30,210 29,998 33,088 31,560 32,875 36,163 34,743 10? Other branches of parent bank 17,040 20,641 15,796 10,314 10,073 11,822 12,262 12,808 14,683 14,196 103 Banks 29,895 23,202 10,166 8,126 7,618 9,024 8,012 8,737 9,521 9,068 104 Official institutions 4,361 3,498 1,967 1,710 1,734 1,796 2,101 2,140 2,237 1,976 105 Nonbank foreigners 9,922 12,671 10,345 10,060 10,573 10,446 9,185 9,190 9,722 9,503 106 Other liabilities 2,953 3,337 2,457 2,218 2,176 2,073 2,249 2,354 2,319 2,379 107 Total payable in U.S. dollars 119,657 145,284 141,908 138,987 137,925 143,502 139,198 135,950 139,829 137,490 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • January 1984 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 IItteemm 11998811 11998822 May June July Aug. Sept/ Oct. Nov." 1 Total1 169,735 172,699 174,541 174,628 175,986 173,071 171,551 173,347 173,973 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 23,514 23,677 21,831 22,510 21,914 22,002 22,679 3 U.S. Treasury bills and certificates3 52,389 46,658 49,281 49,068 53,434 50,965 50,374 51,618 52,558 U.S. Treasury bonds and notes 4 Marketable 53,186 67,684 70,677 71,095 70,181 69,2% 69,301 69,872 69,183 5 Nonmarketable4 11,791 8,750 7,950 7,950 7,950 7,950 7,950 7,950 7,250 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 23,119 22,838 22,590 22,350 22,012 21,905 22,303 By area 7 Western Europe1 65,699 61,288 63,125 63,742 66,409 64,361 63,889 64,824 65,544 8 Canada 2,403 2,070 2,977 3,117 3,293 3,141 2,712 2,816 2,670 9 Latin America and Caribbean 6,953 6,057 5,920 6,509 5,421 5,676 5,501 5,629 6,467 10 Asia 91,607 95,993 95,568 94,688 94,336 93,135 92,833 92,502 91,669 11 Africa 1,829 1,350 1,203 1,075 1,138 1,173 1,1% 1,023 798 12 Other countries6 1,244 5,911 5,748 5,497 5,389 5,585 5,420 6,553 6,825 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 customers' 580 %2 971 676 637 684 717 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 May June July Aug. Sept/ Oct. Nov." 1 AU foreigners 205,297 243,889 307,023 317,666 320,984 326,808 332,196 337,910 337,675 349,852 ?. Banks' own liabilities 124,791 163,817 227,056 233,843 236,845 238,934 245,539 251,421 248,816 260,072 3 Demand deposits 23,462 19,631 15,971 16,935 17,314 15,760 15,672 16,375 17,097 17,234 4 Time deposits' 15,076 29,039 67,910 70,831 73,938 73,554 77,883 81,091 80,471 83,036 5 Other2 17,583 17,647 23,980 23,841 24,881 22,601 23,785 24,956 22,554 24,246 6 Own foreign offices3 68,670 97,500 119,195 122,236 120,712 127,019 128,200 129,000 128,694 135,556 7 Banks' custody liabilities4 80,506 80,072 79,967 83,823 84,139 87,873 86,657 86,488 88,858 89,781 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 60,508 61,245 65,133 63,915 64,062 65,735 66,746 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 19,169 18,731 18,106 17,977 17,292 17,162 18,364 10 Other 2,832 5,970 3,702 4,146 4,163 4,634 4,765 5,135 5,961 4,671 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 5,803 5,456 5,678 5,555 5,308 4,619 6,296 12 Banks' own liabilities 444 638 1,909 3,467 3,048 4,030 3,433 3,024 3,294 4,888 13 Demand deposits 146 262 106 267 165 307 325 252 452 439 14 Time deposits' 85 58 1,664 2,511 2,483 3,010 2,507 2,168 2,487 4,065 15 Other2 212 318 139 690 400 713 601 605 355 381 16 Banks' custody liabilities4 1,900 2,083 3,013 2,335 2,408 1,648 2,121 2,284 1,325 1,408 17 U.S. Treasury bills and certificates 254 541 1,621 1,280 1,538 678 1,294 1,442 441 484 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 1,055 870 970 828 842 884 923 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 72,795 72,747 75,265 73,476 72,289 73,621 75,237 21 Banks' own liabilities 17,826 17,109 16,640 16,768 16,723 15,613 16,285 16,147 16,497 16,546 22 Demand deposits 3,771 2,564 1,981 2,058 2,198 1,940 1,685 1,930 1,818 2,083 23 Time deposits' 3,612 4,230 5,528 6,367 6,352 6,605 6,370 6,185 6,658 6,402 24 Other2 10,443 10,315 9,131 8,343 8,173 7,068 8,230 8,033 8,022 8,060 25 Banks' custody liabilities4 68,798 62,018 55,008 56,026 56,023 59,652 57,191 56,142 57,124 58,691 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 49,281 49,068 53,434 50,965 50,374 51,618 52,558 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 6,724 6,937 6,189 6,186 5,735 5,469 6,105 28 Other 54 47 28 22 17 29 39 32 36 28 29 Banks9 96,415 136,008 185,848 188,957 191,977 194,869 200,554 205,879 203,576 211,947 30 Banks' own liabilities 90,456 124,312 169,416 169,536 172,521 174,750 180,114 184,811 181,635 190,552 31 Unaffiliated foreign banks 21,786 26,812 50,221 47,301 51,809 47,731 51,914 55,811 52,940 54,999 32 Demand deposits 14,188 11,614 8,675 8,832 9,134 8,074 8,302 8,618 9,104 8,762 33 Time deposits' 1,703 8,720 28,261 25,429 27,944 26,512 29,300 31,468 30,331 31,220 34 Other2 5,895 6,477 13,285 13,039 14,730 13,145 14,312 15,725 13,505 15,018 35 Own foreign offices3 68,670 97,500 119,195 122,236 120,712 127,019 128,200 129,000 128,694 135,552 36 Banks' custody liabilities4 5,959 11,696 16,432 19,420 19,456 20,119 20,440 21,069 21,941 21,396 37 U.S. Treasury bills and certificates 623 1,685 5,809 7,824 8,396 8,599 9,015 9,440 10,036 9,967 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 8,315 7,771 7,821 7,581 7,553 7,542 7,228 39 Other 2,588 5,611 2,766 3,282 3,289 3,699 3,845 4,075 4,363 4,201 40 Other foreigners 19,914 26,035 44,606 50,111 50,805 50,996 52,612 54,433 55,859 56,372 41 Banks' own liabilities 16,065 21,759 39,092 44,070 44,552 44,542 45,707 47,439 47,391 48,086 42 Demand deposits 5,356 5,191 5,209 5,777 5,817 5,439 5,360 5,575 5,723 5,950 43 Time deposits 9,676 16,030 32,457 36,524 37,158 37,428 39,706 41,270 40,995 41,349 44 Other2 1,033 537 1,426 1,769 1,578 1,675 642 594 673 787 45 Banks' custody liabilities4 3,849 4,276 5,514 6,041 6,253 6,454 6,905 6,995 8,468 8,286 46 U.S. Treasury bills and certificates 474 699 1,540 2,123 2,242 2,422 2,641 2,805 3,640 3,737 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 3,076 3,154 3,126 3,383 3,162 3,267 4,108 48 Other 190 312 908 842 857 906 881 1,028 1,562 441 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 11,537 11,589 11,062 10,720 10,336 9,975 10,324 1. Excludes negotiable time certificates of deposit, which are included in 6. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 2. Includes borrowing under repurchase agreements. 7. Principally the International Bank for Reconstruction and Development, and 3. U.S. banks: includes amounts due to own foreign branches and foreign the Inter-American and Asian Development Banks. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Foreign central banks and foreign central governments, and the Bank for regulatory agencies. Agencies, branches, and majority-owned subsidiaries of International Settlements. foreign banks: principally amounts due to head office or parent foreign bank, and 9. Excludes central banks, which are included in "Official institutions." foreign branches, agencies or wholly owned subsidiaries of head office or parent • Liabilities and claims of banks in the United States were increased, foreign bank. beginning in December 1981, by the shift from foreign branches to international 4. Financial claims on residents of the United States, other than long-term banking facilities in the United States of liabilities to, and claims on, foreign securities, held by or through reporting banks. residents. 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1984 3.17 Continued 1983 AArreeaa aanndd ccoouunnttrryy 11998800 11998811 •• 11998822 May June July Aug. Sept/ Oct. NOV.p 1 Total 205,297 243,889 307,023 317,666 320,984 326,808 332,196 337,910 337,675 349,852 2 Foreign countries 202,953 241,168 302,101 311,863 315,528 321,130 326,641 332,601 333,056 343,556 3 Europe 90,897 91,275 117,753 116,077 118,531 118,788 120,925 125,850 126,669 129,300 4 Austria 523 596 519 572 640 610 556 659 570 641 5 Belgium-Luxembourg 4,019 4,117 2,517 2,610 2,843 2,955 3,116 2,795 2,853 2,464 6 Denmark 497 333 509 732 616 612 573 593 544 535 7 Finland 455 296 748 280 447 292 459 373 372 375 8 France 12,125 8,486 8,171 6,652 6,766 8,845 8,488 8,827 8,640 8,083 9 Germany 9,973 7,645 5,351 3,971 3,423 3,707 3,537 3,438 4,307 4,331 10 Greece 670 463 537 648 567 588 636 604 595 546 11 Italy 7,572 7,267 5,626 5,573 6,634 7,790 7,277 6,931 7,703 7,818 12 Netherlands 2,441 2,823 3,362 3,550 3,246 3,413 3,633 3,892 3,737 3,715 13 Norway 1,344 1,457 1,567 9,227 1,719 900 1,044 1,457 1,072 1,526 14 Portugal 374 354 388 427 350 338 315 302 297 305 15 Spain 1,500 916 1,405 1,621 1,615 1,694 1,585 1,678 1,592 1,540 16 Sweden 1,737 1,545 1,390 1,356 1,493 1,407 1,204 1,337 1,479 1,686 17 Switzerland 16,689 18,716 29,066 29,781 29,941 29,958 29,867 29,938 30,725 30,434 18 Turkey 242 518 296 248 198 224 315 333 277 319 19 United Kingdom 22,680 28,286 48,172 48,840 50,343 48,015 51,206 55,602 54,746 57,393 20 Yugoslavia 681 375 499 549 504 427 462 506 464 552 21 Other Western Europe1 6,939 6,541 7,006 6,061 6,666 6,514 6,237 6,038 6,082 6,493 22 U.S.S.R 68 49 50 53 71 45 31 23 37 27 23 Other Eastern Europe2 370 493 573 327 448 453 384 525 576 519 24 Canada 10,031 10,250 12,232 16,309 16,345 16,676 17,917 16,470 16,325 16,332 25 Latin America and Caribbean 53,170 85,223 114,133 118,528 120,440 124,257 126,600 127,077 127,171 134,336 26 Argentina 2,132 2,445 3,578 4,746 4,763 5,017 4,249 4,148 4,018 4,382 27 Bahamas 16,381 34,856 44,719 49,751 49,741 54,506 52,002 49,859 51,114 53,957 28 Bermuda 670 765 1,572 1,831 2,064 2,360 2,847 2,833 2,632 2,608 29 Brazil 1,216 1,568 2,014 2,483 2,675 2,681 3,017 3,406 3,818 4,187 30 British West Indies 12,766 17,794 26,376 23.312 24,213 24,172 26,957 28,442 27,410 30,479 31 Chile 460 664 1,626 1,345 1,355 1,385 1,472 1,613 1,697 1,781 32 Colombia 3,077 2,993 2,594 1,873 1,719 1,618 1,674 1,611 1,617 1,647 33 Cuba 6 9 9 8 13 11 12 10 10 10 34 Ecuador 371 434 455 658 581 532 601 670 825 1,004 35 Guatemala 367 479 670 711 705 697 718 758 750 769 36 Jamaica 97 87 126 108 130 108 106 109 105 234 37 Mexico 4,547 7,235 8,377 8,536 9,027 9,142 9,445 9,697 9,447 9,484 38 Netherlands Antilles 413 3,182 3,597 3,622 3,514 3,434 3,486 3,581 3,860 3,932 39 Panama 4,718 4,857 4,805 5,749 5,670 5,608 5,934 6,079 5,902 5,915 40 Peru 403 694 1,147 1,005 1,148 1,055 1,129 1,203 1,049 1,119 41 Uruguay 254 367 759 919 955 958 1,033 1,116 1,202 1,160 42 Venezuela 3,170 4,245 8,417 8,576 8,631 7,715 8,587 8,382 8,202 8,026 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,295 3,537 3,257 3,331 3,561 3,513 3,645 44 42,420 49,822 48,716 52,117 5511,,995577 5533,,002255 5522,,662288 5544,,558833 5533,,337700 5544,,002288 China 45 Mainland 49 158 203 158 208 192 176 190 216 184 46 Taiwan 1,662 2,082 2,761 3,765 3,744 3,913 4,086 3,852 3,992 4,060 47 Hong Kong 2,548 3,950 4,465 5,195 5,587 5,554 5,604 6,582 6,507 6,963 48 India 416 385 433 719 669 606 528 712 830 713 49 Indonesia 730 640 857 765 554 1,245 839 622 871 659 50 Israel 883 592 606 789 835 670 812 848 812 803 51 Japan 16,281 20,750 16,078 17,403 17,006 17,655 16,922 17,418 17,103 17,088 52 Korea 1,528 2,013 1,692 1,459 1,326 1,552 1,553 1,478 1,353 1,591 53 Philippines 919 874 770 783 818 770 933 1,181 747 1,011 54 Thailand 464 534 629 566 692 537 531 581 522 569 55 Middle-East oil-exporting countries3 14,453 12,992 13,433 12,610 11,832 11,865 11,764 12,661 12,410 12,496 56 Other Asia 2,487 4,853 6,789 7,906 8,685 8,467 8,877 8,458 8,007 7,890 57 Africa 5,187 3,180 3,124 2,876 2,693 2,916 2,853 3,132 2,845 2,694 58 Egypt 485 360 432 513 467 554 465 488 576 589 59 Morocco 33 32 81 50 54 57 48 84 73 96 60 South Africa 288 420 292 358 355 403 452 520 394 389 61 Zaire 57 26 23 32 59 55 29 34 43 32 62 Oil-exporting countries4 3,540 1,395 1,280 867 743 928 934 963 736 679 63 Other Africa 783 946 1,016 1,057 1,014 919 926 1,042 1,023 909 64 Other countries 1,247 1,419 6,143 5,956 5,562 5,469 5,719 5,490 6,675 6,866 65 Australia 950 1,223 5,904 5,778 5,404 5,250 5,512 5,284 6,461 6,665 66 All other 297 1% 239 178 159 219 208 206 214 201 67 Nonmonetary international and regional organizations 2,344 2,721 4,922 5,803 5,456 5,678 5,555 5,308 4,619 6,296 68 International 1,157 1,661 4,049 5,078 4,747 4,987 4,861 4,674 3,944 5,547 69 Latin American regional 890 710 517 457 443 454 441 445 437 415 70 Other regional5 296 350 357 267 266 237 252 189 238 334 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. • 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 May June July Aug. Sept/ Oct. Nov.P 1 Total 172,592 251,573 355,694 364,096 372,437 366,155 371,924 375,536 375,243 374,262 2 Foreign countries 172,514 251,517 355,625 364,019 372,337 366,070 371,839 374,939 375,183 374,192 3 Europe 32,108 49,262 85,508 83,975 86,335 84,496 87,876 90,522 88,835 88,302 4 Austria 236 121 229 309 342 383 338 351 334 390 5 Belgium-Luxembourg 1,621 2,849 5,138 5,689 5,7% 5,449 5,890 5,650 5,503 5,404 6 Denmark 127 187 554 1,059 1,077 1,064 1,124 1,131 1,103 1,190 7 460 546 990 766 870 777 637 697 789 788 8 France 2,958 4,127 7,251 7,839 7,941 7,900 8,589 7,869 7,390 7,779 9 Germany 948 940 1,876 1,208 1,404 1,112 1,153 1,428 1,095 1,250 10 Greece 256 333 452 607 576 458 375 408 369 402 It Italy 3,364 5,240 7,560 6,985 7,323 7,401 7,387 7,038 7,686 8,300 1? Netherlands 575 682 1,425 1,282 1,165 %7 1,048 1,189 1,063 1,300 13 Norway 227 384 572 683 652 598 634 550 575 564 14 Portugal 331 529 950 818 846 844 848 861 893 887 15 Spain 993 2,095 3,744 3,062 3,199 3,339 3,373 3,389 3,128 3,565 16 Sweden 783 1,205 3,038 2,307 2,864 2,910 2,836 3,081 3,059 3,1% 17 Switzerland 1,446 2,213 1,639 1,085 1,598 1,727 1,630 1,765 1,579 1,948 18 Turkey 145 424 560 578 570 629 594 616 660 693 19 United Kingdom 14,917 23,849 45,706 45,949 46,250 45,346 47,751 50,780 49,965 46,913 70 Yugoslavia 853 1,225 1,430 1,482 1,463 1,381 1,351 1,369 1,468 1,570 71 Other Western Europe1 179 211 368 254 334 356 406 529 394 417 ?? U.S.S.R 281 377 263 349 373 288 232 215 206 169 23 Other Eastern Europe2 1,410 1,725 1,762 1,664 1,692 1,566 1,680 1,606 1,575 1,578 24 Canada 4,810 9,193 13,678 16,536 16,616 16,497 17,501 16,525 15,885 16,259 75 Latin America and Caribbean 92,992 138,331 188,199 198,139 198,880 195,018 195,219 194,391 197,794 199,943 76 Argentina 5,689 7,527 10,974 11,550 11,243 11,112 11,334 11,444 11,618 11,846 77 Bahamas 29,419 43,535 56,880 58,965 62,153 58,824 54,670 55,009 58,944 58,653 78 Bermuda 218 346 603 628 447 358 390 578 494 784 79 Brazil 10,496 16,926 23,271 23,541 23,333 23,711 24,224 24,282 24,176 24,352 30 British West Indies 15,663 21,972 29,101 33,356 32,518 30,349 31,804 30,877 30,796 32,459 31 Chile 1,951 3,690 5,513 5,568 5,161 5,188 5,389 5,792 5,740 5,888 37 Colombia 1,752 2,018 3,211 3,485 3,600 3,656 3,592 3,665 3,648 3,750 33 Cuba 3 3 3 0 0 0 0 0 3 0 34 Ecuador 1,190 1,531 2,062 2,040 2,038 2,018 2,014 2,020 2,154 2,258 35 Guatemala3 137 124 124 90 90 % 100 112 115 122 36 Jamaica3 36 62 181 197 207 209 204 214 203 210 37 Mexico 12,595 22,439 29,552 31,939 32,318 32,862 33,689 33,740 33,4% 33,446 38 Netherlands Antilles 821 1,076 839 827 519 943 838 897 996 1,143 39 Panama 4,974 6,794 10,210 9,686 8,824 9,127 10,091 9,189 8,835 8,292 40 Peru 890 1,218 2,357 2,416 2,624 2,506 2,421 2,470 2,434 2,426 41 Uruguay 137 157 686 824 820 833 820 857 883 902 47 Venezuela 5,438 7,069 10,643 10,748 10,848 11,121 11,045 11,037 10,881 10,958 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,280 2,138 2,104 2,592 2,209 2,378 2,453 44 39,078 49,851 60,786 57,412 62,502 61,874 62,538 64,751 63,425 60,486 China 45 Mainland 195 107 214 219 166 124 179 227 295 249 46 Taiwan 2,469 2,461 2,288 1,613 1,760 1,715 1,644 1,829 1,618 1,488 47 Hong Kong 2,247 4,132 6,698 7,552 7,845 8,033 8,022 8,704 8,180 8,654 48 142 123 222 198 230 245 275 259 324 300 49 Indonesia 245 352 348 569 537 595 635 688 697 704 50 1,172 1,567 2,029 1,926 2,181 1,657 1,639 1,726 1,780 1,816 51 21,361 26,797 28,302 24,757 27,381 27,758 27,416 28,563 28,228 25,634 57 5,697 7,340 9,387 8,940 9,143 9,639 9,6% 9,634 9,314 9,383 53 Philippines 989 1,819 2,625 2,493 2,829 2,640 2,530 2,777 2,369 2,384 54 876 565 643 707 788 689 735 806 831 867 55 Middle East oil-exporting countries4 1,432 1,581 3,087 4,027 4,452 4,003 4,654 4,142 4,607 4,221 56 Other Asia 2,252 3,009 4,943 4,413 5,191 4,776 5,114 5,395 5,182 4,786 57 2,377 3,503 5,346 5,538 5,662 5,937 6,527 6,482 6,889 6,768 58 Egypt 151 238 322 378 421 486 529 596 623 670 59 Morocco 223 284 353 441 463 484 444 444 462 461 60 South Africa 370 1,011 2,012 2,123 2,231 2,407 2,630 2,719 2,582 2,867 61 94 112 57 47 46 45 40 38 38 37 67 Oil-exporting countries5 805 657 801 851 830 850 1,052 964 1,481 1,024 63 Other 734 1,201 1,802 1,699 1,671 1,664 1,832 1,722 1,703 1,709 64 Other countries 1,150 1,376 2,107 2,418 2,342 2,248 2,177 2,267 2,357 2,434 65 Australia 859 1,203 1,713 1,756 1,722 1,635 1,635 1,675 1,692 1,814 66 All other 290 172 394 662 620 613 542 593 664 620 67 Nonmonetary international and regional organizations6 78 5566 6688 7777 110000 8855 8855 559988 6600 7700 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 • 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 • January 1984 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 May June July Aug. Sept.' Oct. NOV.P 1 Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555544444441111111 333333399999996666666,,,,,,,000000000000004444444 444444400000007777777,,,,,,,999999911111110000000 444444411111111111111,,,,,,,666666633333339999999 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555577777773333333 333333355555555555555,,,,,,,666666699999994444444 364,096 333333377777772222222,,,,,,,444444433333337777777 366,155 371,924 333333377777775555555,,,,,,,555555533333336666666 375,243 374,262 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444400000009999999 47,821 44444449999999,,,,,,,222222244444440000000 49,609 51,586 55555553333333,,,,,,,666666699999999999999 54,756 55,278 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,444444444444448888888 139,392 111111144444440000000,,,,,,,111111133333339999999 135,686 137,155 111111133333337777777,,,,,,,333333388888882222222 144,673 140,095 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,666666688888888888888 111111122222221111111,,,,,,,333333333333333333333 116,017 111111122222220000000,,,,,,,555555555555559999999 117,720 120,495 111111122222221111111,,,,,,,999999900000000000000 114,160 116,434 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333366666665555555 44444444444444,,,,,,,111111188888880000000 44,403 44444446666666,,,,,,,888888888888883333333 46,166 47,157 44444448888888,,,,,,,111111177777779999999 44,714 44,448 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 71,613 77777773333333,,,,,,,666666677777776666666 71,554 73,338 77777773333333,,,,,,,777777722222221111111 69,446 71,985 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,555555500000004444444 60,867 66666662222222,,,,,,,444444499999999999999 63,141 62,688 66666662222222,,,,,,,555555555555556666666 61,654 62,456 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333335555555,,,,,,,444444477777773333333 33333336666666,,,,,,,111111100000002222222 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,666666633333331111111 2222222,,,,,,,666666655555554444444 11 Negotiable and readily transferable 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,777777700000008888888 22222227777777,,,,,,,555555555555550000000 12 Outstanding collections and other 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 6666666,,,,,,,111111133333333333333 5555555,,,,,,,888888899999998888888 13 MEMO: Customer liability on 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,333333333333338888888 33333334444444,,,,,,,888888811111111111111 33333334444444,,,,,,,555555588888885555555 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 39,862 41,702' 43,49<K 41,162' 41,443' 41,899' 41,652 44,189' 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 11998811AA Sept. Dec. Mar. June Sept. 1 106,748 154,574 215,200 227,967 229,437 231,022 233,676 By borrower 2 Maturity of 1 year or less1 82,555 116,378 163,465 173,736 173,631 173,596 174,629 3 Foreign public borrowers 9,974 15,142 20,095 21,236 21,667 22,442 25,519 4 All other foreigners 72,581 101,236 143,370 152,500 151,964 151,154 149,111 5 Maturity of over 1 year1 24,193 38,197 51,735 54,231 55,807 57,427 59,046 6 Foreign public borrowers 10,152 15,589 22,016 23,127 24,693 26,170 27,077 7 All other foreigners 14,041 22,608 29,719 31.104 31,113 31,257 31,970 By area Maturity of 1 year or less' 8 Europe 18,715 28,130 45,908 50,493 53,986 51,797 52,665 9 Canada 2,723 4,662 7,062 7,642 6,845 6,957 6,443 10 Latin America and Caribbean 32,034 48,701 72,353 73,239 74,998 74,622 76,031 11 26,686 31,485 33,358 37,455 32,574 35,183 33,442 12 1,757 2,457 3,621 3,680 3,872 3,854 4,657 13 All other2 640 943 1,163 1,226 1,355 1,182 1,391 Maturity of over 1 year' 14 Europe 55,,111188 8,100 10,564 11,636 11,986 12,181 11,613 15 Canada 1,448 1,808 2,003 1,931 1,924 1,864 1,756 16 Latin America and Caribbean 15,075 25,209 34,112 35,245 35,844 36,604 38,254 17 1,865 1,907 3,092 3,185 3,573 4,045 4,581 18 507 900 1,328 1,494 1,485 1,667 1,734 19 AH 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 Banks' Billions of dollars, end of period 1981 1982 1983 AArreeaa oorr ccoouunnttrryy 11997799 11998800 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. 1 Total 303.9 352.0 400.0 415.2 419.6 435.1 437.9 438.5 440.1 435.2 421.0 2 G-10 countries and Switzerland 138.4 162.1 172.3 175.5 174.5 176.2 175.3 179.5 181.8 175.8 164.9 3 Belgium-Luxembourg 11.1 13.0 14.1 13.3 13.2 14.1 13.6 13.1 13.7 13.3 12.4 11.7 14.1 16.0 15.3 16.0 16.5 15.8 17.1 17.1 17.1 16.0 5 Germany 12.2 12.1 12.7 12.9 12.5 12.7 12.2 12.7 13.4 12.5 11.5 6 Italy 6.4 8.2 9.6 9.0 9.0 9.7 10.3 10.2 10.5 9.7 7 Netherlands 4.8 4.4 3.7 4.0 4.0 4.1 3.8 3.6 4.3 4.1 3.6 8 Sweden 2.4 2.9 3.5 3.7 4.1 4.0 4.7 5.0 4.3 4.7 4.8 9 Switzerland 4.7 5.0 5.1 5.5 5.3 5.1 5.1 5.0 4.6 4.7 4.2 10 United Kingdom 56.4 67.4 68.8 70.1 70.3 69.3 70.2 72.0 72.7 69.7 65.1 11 Canada 6.3 8.4 11.8 10.9 11.6 11.4 11.0 10.4 12.4 10.7 8.8 12 Japan 22.4 26.5 28.1 30.2 28.5 29.9 29.3 30.1 29.1 28.5 28.8 13 Other developed countries 19.9 21.6 26.4 28.4 30.7 32.1 32.7 33.7 33.9 34.3 33.9 14 Austria 2.0 1.9 2.2 1.9 2.1 2.1 2.0 1.9 2.1 2.1 1.9 15 Denmark 2.2 2.3 2.5 2.3 2.5 2.6 2.5 2.4 3.3 3.3 3.3 16 Finland 1.2 1.4 1.4 1.7 1.6 1.6 1.8 2.2 2.1 2.1 1.8 17 Greece 2.4 2.8 2.9 2.8 2.9 2.7 2.6 3.0 2.9 2.8 2.9 18 Norway 2.3 2.6 3.0 3.1 3.2 3.2 3.4 3.3 3.3 3.4 3.2 19 Portugal .7 .6 1.0 1.1 1.2 1.5 1.6 1.5 1.4 1.4 1.3 20 Spain 3.5 4.4 5.8 6.6 7.2 7.3 7.7 7.5 7.0 7.2 7.1 21 Turkey 1.4 1.5 1.5 1.4 1.6 1.5 1.5 1.4 1.5 1.4 1.5 22 Other Western Europe 1.4 1.7 1.9 2.1 2.1 2.2 2.1 2.3 2.2 2.1 2.1 23 South Africa 1.3 1.1 2.5 2.8 3.3 3.5 3.6 3.7 3.6 3.9 4.6 24 Australia 1.3 1.3 1.9 2.5 3.0 4.0 4.0 4.4 4.6 4.5 4.3 25 OPEC countries2 22.9 22.7 23.5 24.8 25.4 26.4 27.3 27.4 28.5 28.0 27.0 26 Ecuador 1.7 2.1 2.1 2.2 2.3 2.4 2.3 2.2 2.2 2.2 2.1 27 Venezuela 8.7 9.1 9.2 9.9 10.0 10.1 10.4 10.5 10.4 10.2 9.6 28 Indonesia 1.9 1.8 2.5 2.6 2.7 2.8 2.9 3.2 3.5 3.2 3.4 29 Middle East countries 8.0 6.9 7.1 7.5 8.2 8.7 9.0 8.7 9.3 9.5 9.0 30 African countries 2.6 2.8 2.6 2.5 2.2 2.5 2.7 2.8 3.0 3.0 2.8 31 Non-OPEC developing countries 63.0 77.4 90.3 96.3 97.5 103.6 104.0 107.0 107.5 108.1 107.6 Latin America 32 Argentina 5.0 7.9 9.3 9.4 10.0 9.6 9.2 8.9 9.0 9.4 9.4 33 Brazil 15.2 16.2 17.7 19.1 19.7 21.4 22.4 22.9 23.1 22.5 22.6 34 Chile 2.5 3.7 5.5 5.8 6.0 6.4 6.2 6.3 6.0 5.8 6.1 35 Colombia 2.2 2.6 2.5 2.6 2.3 2.6 2.8 3.1 2.9 3.2 3.2 36 Mexico 12.0 15.9 20.0 21.6 22.9 25.2 25.0 24.5 25.0 25.0 25.5 37 Peru 1.5 1.8 1.8 2.0 1.9 2.5 2.6 2.6 2.4 2.6 2.3 38 Other Latin America 3.7 3.9 4.2 4.1 4.1 4.0 4.3 4.0 4.2 4.3 4.2 Asia China 39 Mainland .1 .2 .2 .2 .2 .3 .2 .2 .2 .2 .2 40 Taiwan 3.4 4.2 5.1 5.1 5.1 5.0 4.9 5.2 5.1 5.1 5.1 41 India .2 .3 .3 .3 .5 .5 .5 .6 .4 .5 .5 42 Israel 1.3 1.5 1.5 2.1 1.7 2.2 1.9 2.3 2.0 2.3 1.7 43 Korea (South) 5.4 7.1 9.4 8.6 8.9 9.3 10.8 10.8 10.8 10.5 44 Malaysia 1.0 1.1 1.7 1.7 1.9 1.8 2.1 2.5 2.6 2.8 45 Philippines 4.2 5.1 6.0 5.9 6.3 6.0 6.3 6.6 6.4 6.1 46 Thailand 1.5 1.6 1.5 1.4 1.3 1.3 1.6 1.6 1.8 1.7 47 Other Asia .5 .6 .8 1.0 1.2 1.1 1.3 1.1 1.4 1.2 1.0 Africa 48 Egypt .6 .8 1.0 1.1 11..33 1.3 1.3 1.2 1.1 1.2 1.4 49 Morocco .6 .7 .7 .7 .7 .7 .8 .7 .8 .8 .8 50 Zaire .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.2 2.3 2.3 2.3 2.2 2.4 2.3 2.2 2.4 52 Eastern Europe 7.3 7.4 7.7 7.8 7.2 6.7 6.3 6.2 5.8 5.8 5.3 53 U.S.S.R .7 .4 .4 .6 .4 .4 .3 .3 .3 .4 .2 54 Yugoslavia 1.8 2.3 2.5 2.5 2.5 2.4 2.2 2.2 2.2 2.3 2.2 55 Other 4.8 4.6 4.7 4.7 4.3 3.9 3.8 3.7 3.3 3.1 2.9 56 Offshore banking centers 40.4 47.0 61.8 63.7 65.7 72.0 72.0 66.9 66.2 67.4 65.6 57 Bahamas 13.7 13.7 21.4 19.0 20.2 24.1 21.4 19.2 17.7 19.9 19.2 58 Bermuda .8 .6 .8 .7 .7 .7 .8 .9 1.0 .8 .9 59 Cayman Islands and other British West Indies 9.4 10.6 12.1 12.4 12.1 12.3 13.6 12.9 11.9 11.9 10.1 60 Netherlands Antilles 1.2 2.1 2.2 3.2 3.2 3.0 3.3 3.3 3.1 2.6 4.2 61 Panama4 4.3 5.4 6.8 7.7 7.2 7.4 8.1 7.6 7.1 6.5 5.6 62 Lebanon .2 .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 10.3 11.8 12.9 14.3 14.9 13.8 15.0 14.5 15.0 64 Singapore 4.5 5.9 8.0 8.7 9.3 9.9 9.8 9.1 10.3 11.0 10.4 65 Others5 .4 .3 .1 .1 .1 .1 .0 .0 .0 .0 .1 66 Miscellaneous and unallocated6 11.7 14.0 18.2 18.8 18.5 18.4 20.3 17.9 16.4 15.7 16.9 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 • January 1984 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbariking 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 17,433 29,434 28,618' 25,532' 25,149' 25,142' 22,925 22,267 2 Payable in dollars 14,323 25,689 24,909' 22,770' 22,051' 22,042' 20,032 19,477 3 Payable in foreign currencies 3,110 3,745 3,709' 2,763 3,099 3,099 2,893 2,790 By type 4 Financial liabilities 7,523 11,330 12,157' 10,144' 10,855' 10,499' 10,478 10,760 5 Payable in dollars 5,223 8,528 9,499' 8,203' 8,565' 8,424' 8,533 8,730 6 Payable in foreign currencies 2,300 2,802 2,658' 1,941 2,291 2,075 1,945 2,031 7 Commercial liabilities 9,910 18,104 16,461 15,388' 14,294' 14,642' 12,447 11,507 8 Trade payables 4,591 12,201 10,818 9,475 8,084' 7,687' 5,620 5,979 9 Advance receipts and other liabilities 5,320 5,903 5,643 5,913' 6,209' 6,955' 6,827 5,527 10 Payable in dollars 9,100 17,161 15,409 14,566' 13,486' 13,618' 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 6,825' 5,944 6,389 6,172 6,090 6,126 13 Belgium-Luxembourg 338 479 471 518 494 502 407 436 14 France 175 327 709 581 672 635 685 697 15 Germany 497 582 491 439 446 470 487 460 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 3,565' 3,081 3,212 3,061 3,071 3,060 19 Canada 532 964 963' 784' 753' 735' 723 854 20 Latin America and Caribbean 1,514 3,136 3,356 2,805 2,969 2,707 2,690 2,435 21 Bahamas 404 964 1,279 1,003 938 890 817 695 22 Bermuda 81 1 7 7 9 14 18 10 23 Brazil 18 23 22 24 28 28 39 34 24 British West Indies 516 1,452 1,241 1,044 981 1,002 1,001 932 25 Mexico 121 99 102 83 85 121 149 151 26 Venezuela 72 81 98 100 104 114 121 124 27 Asia 804 723 976 582' 714' 857' 943 1,319 28 Japan 726 644 792 395' 479' 633' 699 943 29 Middle East oil-exporting countries2 31 38 75 66 67 69 68 205 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 3,639' 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 545 679 545 457 436 459' 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 1,001 851' 679 621 40 Canada 924 888 897 1,134 1,197 1,496' 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 7,591' 6,641' 7,16C 5,437 4,685 49 Japan 583 802 1,094 1,085 1,192' 1,226' 1,235 1,122 50 Middle East oil-exporting countries2,5 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 States' Millions of dollars, end of period 1982 1983 Type, and area or country 997799 11998800 11998811 June Sept. Dec. Mar. June 1 Total 31,299 34,482 36,185 31,039' 30,232' 27,988' 30,726' 31,622' 2 Payable in dollars 28,096 31,528 32,582 28,525r 27,571' 25,36c 27,984' 29,046' 3 Payable in foreign currencies 3,203 2,955 3,603 2,513' 2,661' 2,628' 2,741 2,576' By type 4 Financial claims 18,398 19,763 21,142 18,814' 18,356^ 17,033' 19,743' 21,148' 5 Deposits 12,858 14,166 15,081 14,04K 13,241' 12,497' 15,092' 16,324' 6 Payable in dollars 11,936 13,381 14,456 13,671' 12,828' 12,071' 14,614' 15,897' 7 Payable in foreign currencies 923 785 625 370 413 426 478 426' 8 Other financial claims 5,540 5,597 6,061 4,773' 5,115' 4,536' 4,651 4,824' 9 Payable in dollars 3,714 3,914 3,599 3,194 3,419 2,895 3,006 3,226' 10 Payable in foreign currencies 1,826 1,683 2,462 1,579' 1,696' 1,641' 1,645 1,598' 11 Commercial claims 12,901 14,720 15,043 12,225' 11,877' 10,954' 10,983 10,474 12 Trade receivables 12,185 13,960 14,007 11,045' 10,770' 9,945' 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 14,527 11,661' 11,324' 10,394' 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 4,596 4,867' 4,967' 4,772' 6,066 7,207' 17 Belgium-Luxe mbourg 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 216r 20 Netherlands 53 51 50 106' 1W 97' 140 136 21 Switzerland 73 54 117 74 60 107 99 34' 22 United Kingdom 5,099 4,987 3,546 3,93(K 3,859' 3,981' 5,301 6,437' 23 Canada 5,003 5,036 6,755 4,436' 4,386' 4,287' 4,612' 4,870' 24 Latin America and Caribbean 6,312 7,811 8,812 8,487' 7,948' 7,087' 8,173' 7,997' 25 Bahamas 2,773 3,477 3,650 3,832' 3,435' 3,160' 3,756' 3,244' 26 Bermuda 30 135 18 42 16 8 10 72' 27 Brazil 163 96 30 76 76 62 50 48 28 British West Indies 2,011 2,755 3,971 3,676' 3,411' 2,929' 3,080' 3,317' 29 Mexico 157 208 313 274 268 274 352 348 30 Venezuela 143 137 148 134 133 139 156 152 31 Asia 601 607 758 802 846 698 712 771' 32 Japan 199 189 366 327 268 153 233 288' 33 Middle East oil-exporting countries2 16 20 37 33 30 15 18 14 34 Africa 258 208 173 156 165 158 153 154 49 26 46 41 50 48 45 48 35 Oil-exporting countries3 44 32 48 66 44 31 25 149 36 All other4 Commercial claims 4,922 5,544 5,405 4,331' 4,231' 3,758' 3,592 3,392 37 Europe 202 233 234 211 178 150 140 144 38 Belgium-Luxembourg 727 1,129 776 636 646 473 489 495 39 France 593 599 561 394 427 356 419 358 40 Germany 298 318 299 291 268' 347 309 242 41 Netherlands 272 354 431 414 291 339 227 303 42 Switzerland 901 929 985 905 1,035 793 754 737 43 United Kingdom 44 Canada 859 914 967 714 666 635 674 740 45 Latin America and Caribbean 2,879 3,766 3,479 2,790' 2,772 2,514' 2,690 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 3,959 3,329' 3,098' 3,045' 3,126 2,741 53 Japan 1,177 1,052 1,245 1,144' 973 1,047 1,115 854 54 Middle East oil-exporting countries2 765 825 905 809 777 748 701 696 55 Africa 551 653 772 648 661' 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 • January 1984 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1983 1983 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998811 11998822 Jan.- Nov. May June July Aug. Sept. Oct. Nov.'' U.S. corporate securities STOCKS 1 Foreign purchases 40,686 41,942 63,878 6,625 6,864 5,758 5,181 5,516' 5,528 4,847 2 Foreign sales 34,856 37,965 58,696 6,365 6,454 5,198 5,142 5,116 5,392 4,783 3 Net purchases, or sales (—) 5,830 3,976 5,182 260 410 560 39 4<HK 136 65 4 Foreign countries 5,803 3,892 5,076 258 435 551 40 392' 132 64 5 Europe 3,662 2,616 4,302 302 202 442 97 261' -99 -58 6 France 900 -143 -34 -28 14 33 -77 -10 -36 -66 7 Germany -22 333 1,104 86 -31 135 54 48 55 53 8 Netherlands 42 -60 -123 -81 -57 7 -13 -49 -15 24 9 Switzerland 288 -532 1,522 269 186 187 56 123 -18 -97 10 United Kingdom 2,235 3,152 1,758 122 95 49 79 171 -136 21 11 Canada 783 221 964 92 98 1 75 154 124 0 12 Latin America and Caribbean -30 308 287 63 28 35 -98 106' -44 17 13 Middle East1 1,140 366 -820 -192 36 -59 -88 -178 49 44 14 Other Asia 287 246 280 0 68 146 75 51 103 63 15 Africa 7 2 40 3 1 0 7 4 -1 1 16 Other countries -46 131 23 -10 2 -12 -28 -6 -1 -3 17 Nonmonetary international and regional organizations 27 85 106 2 -25 9 -1 8 4 0 BONDS2 18 Foreign purchases 17,304 21,918 22,485 2,458 1,546 1,438 2,141 1,888 2,537 2,018 19 Foreign sales 12,272 20,463 21,700 2,289 1,741 1,463 1,995 1,960 2,465 1,304 20 Net purchases, or sales (-) 5,033 1,456 785 169 -195 -25 146 -72 72 714 21 Foreign countries 4,972 1,483 777 193 -197 -49 44 -77 169 695 22 Europe 1,351 2,081 1,029 474 -122 -74 115 14 303 458 23 France 11 295 -78 7 -7 -5 -6 0 2 -31 24 Germany 848 2,116 293 85 -12 -8 25 41 66 53 25 Netherlands 70 28 47 12 -4 5 -3 1 11 5 26 Switzerland 108 161 558 188 28 -8 -1 -19 7 15 27 United Kingdom 196 -581 574 141 120 -33 112 32 136 390 28 Canada -12 25 149 22 -10 53 -3 -10 22 46 29 Latin America and Caribbean 132 160 74 10 19 13 -21 4 24 -6 30 Middle East' 3,465 -748 -1,165 -378 -168 -119 -121 -105 -221 95 31 Other Asia 44 -23 638 62 47 78 74 19 45 101 32 Africa -1 -19 0 1 2 0 0 2 0 0 33 Other countries -7 7 52 2 35 0 0 -2 -4 0 34 Nonmonetary international and regional organizations 61 -28 8 -24 2 24 102 6 -97 20 Foreign securities 35 Stocks, net purchases, or sales (-) -247 -1,341 -3,015 -641 -647 -487 -214 -106 -14 626 36 Foreign purchases 9,339 7,163 12,641 1,079 1,346 972 1,032 1,297' 1,140 1,549 37 Foreign sales 9,586 8,504 15,656 1,720 1,993 1,458 1,246 1,403' 1,154 923 38 Bonds, net purchases, or sales (-) -5,460 -6,602 -3,209 -838 127 -219 -463 -54 -172 -77 39 Foreign purchases 17,553 29,843 33,377 2,655 3,220 2,534 2,708 3,714 3,902 3,112 40 Foreign sales 23,013 36,445 36,586 3,493 3,092 2,754 3,171 3,768 4,075 3,188 41 Net purchases, or sales (-), of stocks and bonds .... -5,707 -7,942 -6,224 -1,479 -520 -706 -677 -160 -186 550 42 Foreign countries -4,694 -6,777 -5,887 -973 -546 -715 -684 -146 -235 445 43 Europe -728 -2,481 -5,134 -632 -583 -682 -301 124 -338 -417 44 Canada -3,697 -2,364 -1,135 -287 5 55 -97 -355 6 432 45 Latin America and Caribbean 69 286 1,103 243 -80 47 62 23' 5 135 46 -367 -1,845 -841 -310 -182 -145 23 105' 90 160 47 Africa -55 -9 141 9 13 11 14 16 11 1 48 Other countries 84 -364 -21 4 280 0 -385 -59 -10 135 49 Nonmonetary international and regional organizations -1,012 -1,165 -337 -506 26 9 7 -14 49 105 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 N a o n v .- . May June July Aug. Sept/ Oct. Nov.P Holdings (end of period)1 1 Estimated total2 70,249 85,179 89,513 91,070 88,788 87,439 88,617 91,046 89,879 2 Foreign countries2 64,565 80,596 84,351 84,887 83,571 82,746 82,719 84,416 84,123 3 Europe2 24,012 29,284 33,628 33,638 33,081 32,996 33,370 34,415 35,098 4 Belgium-Luxembourg 543 447 -76 -68 99 95 58 18 2 5 Germany2 11,861 14,841 16,954 16,877 16,314 16,119 16,155 16,570 17,092 6 Netherlands 1,991 2,754 3,255 3,251 3,262 3,234 3,034 2,987 3,048 7 Sweden 643 677 680 665 684 644 666 714 758 8 Switzerland2 846 1,540 914 877 855 965 1,087 1,177 1,064 9 United Kingdom 6,709 6,549 8,048 8,233 8,235 8,270 8,289 8,629 8,667 10 Other Western Europe 1,419 2,476 3,855 3,803 3,631 3,669 4,081 4,321 4,467 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 514 602 874 982 1,057 1,087 1,062 1,264 1,225 13 Latin America and Caribbean 736 1,076 1,039 1,041 886 800 774 695 914 14 Venezuela 286 188 72 72 62 62 65 66 64 15 Other Latin America and Caribbean 319 656 775 773 636 622 631 540 674 16 Netherlands Antilles 131 232 192 196 188 116 78 89 176 17 Asia 38,671 49,502 48,686 49,094 48,394 47,690 47,387 47,908 46,764 18 Japan 10,780 11,578 12,130 12,592 12,763 13,007 13,210 13,446 13,600 19 Africa 631 77 79 79 79 79 79 79 79 20 All other 2 55 45 53 74 94 48 56 43 21 Nonmonetary international and regional organizations 5,684 4,583 5,162 6,183 5,217 4,693 5,898 6,630 5,756 22 International 5,638 4,186 4,514 5,372 4,500 4,086 5,421 6,094 5,030 23 Latin American regional 1 6 6 6 6 6 6 6 0 Transactions (net purchases, or sales ( -) during period) 24 Total2 12,699 14,930 4,706 1,960 1,557 -2,281 -1,350 1,178 2,429 -1,161 25 Foreign countries2 11,604 16,031 3,527 245 536 -1,316 -826 -26 1,697 -293 26 Official institutions 11,730 14,508 1,445 34 418 -914 -885 5 571 -689 27 Other foreign2 -126 1,518 2,085 211 118 -400 59 -31 1,126 395 28 Nonmonetary international and regional organizations 1,095 -1,096 1,180 1,716 1,021 -966 -523 1,205 732 -867 MEMO: Oil-exporting countries 29 Middle East3 11,156 7,534 -5,324 -566 -277 -172 -1,764 -305 -400 -929 30 Africa4 -289 -552 -1 -1 0 0 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 Dec. 31, 1983 Rate on Dec. 31, 1983 Rate on Dec. 31, 1983 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 3.75 Mar. 1983 France1 11.75 Dec. 1983 Norway 8.0 June 1979 Belgium . 9.0 June 1983 Germany, Fed. Rep. of 4.0 Mar. 1983 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 17.0 Apr. 1983 United Kingdom2. Canada.. 10.04 Dec. 1983 Japan 5.0 Oct. 1983 Venezuela Sept. 1982 Denmark 7.5 Apr. 1983 Netherlands 5.0 Sept. 1983 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 • January 1984 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 CCoouunnttrryy,, oorr ttyyppee 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 16.79 12.24 9.57 9.66 10.00 10.27 9.82 9.54 9.79 10.08 2 United Kingdom 13.86 12.21 10.06 9.91 9.84 9.83 9.63 9.34 9.26 9.34 3 Canada 18.84 14.38 9.48 9.41 9.42 9.49 9.35 9.31 9.40 9.83 4 Germany 12.05 8.81 5.73 5.52 5.54 5.66 5.83 6.13 6.26 6.43 5 Switzerland 9.15 5.04 4.11 4.98 4.77 4.61 4.40 4.07 4.11 4.29 6 Netherlands 11.52 8.26 5.58 5.81 5.58 6.03 6.15 6.07 6.17 6.20 7 France 15.28 14.61 12.44 12.59 12.33 12.33 12.42 12.42 12.31 12.16 8 19.98 19.99 18.95 17.72 17.50 17.50 17.42 17.51 17.71 17.75 9 Belgium 15.28 14.10 10.51 9.73 9.08 9.25 9.25 9.44 9.89 10.50 10 Japan 7.58 6.84 6.49 6.46 6.47 6.52 6.68 6.52 6.35 6.45 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 11998811 11998822 11998833 July Aug. Sept. Oct. Nov. Dec. 1 Argentina/peso n.a. 20985.00 8.59 8.85 8.94 11.22 11.65 11.65 16.73 7 Australia/dollar1 114.95 101.65 90.14 87.54 87.93 88.77 91.37 91.59 90.04 3 Austria/schilling 15.948 17.060 17.968 18.208 18.799 18.754 18.305 18.900 19.383 4 Belgium/franc 37.194 45.780 51.121 51.862 53.609 53.841 53.034 54.538 55.939 5 Brazil/cruzeiro 92.374 179.22 573.27 571.73 643.34 701.38 784.35 870.21 943.43 6 Canada/dollar 1.1990 1.2344 1.2325 1.2323 1.2338 1.2326 1.2320 1.2367 1.2469 7 Chile/peso n.a. 51.118 79.350 78.987 80.011 81.767 83.710 85.600 86.557 8 China, P.R./yuan 1.7031 1.8978 1.9809 1.9966 1.9843 1.9867 1.9664 1.9940 1.9920 9 Colombia/peso n.a. 64.071 78.563 78.997 80.707 82.494 84.196 85.938 87.173 10 Denmark/krone 7.1350 8.3443 9.1483 9.3142 9.6308 9.5926 9.4172 9.6791 9.9530 11 Finland/markka 4.3128 4.8086 5.5636 5.5863 5.7063 5.7057 5.6390 5.7468 5.8515 1? France/franc 5.4396 6.5793 7.6203 7.7878 8.0442 8.0598 7.9526 8.1646 8.3839 13 Germany/deutsche mark 2.2631 2.428 2.5539 2.5914 2.6736 2.6679 2.6032 2.6846 2.7500 14 Greece/drachma n.a. 66.872 87.895 84.677 89.217 92.837 92.968 96.229 98.815 15 Hong Kong/dollar 5.5678 6.0697 7.2569 7.1678 7.4416 8.0079 8.0947 7.8120 7.8044 16 India/rupee 8.6807 9.4846 10.1040 10.0875 10.187 10.200 10.229 10.378 10.4895 17 Indonesia/rupiah n.a. 660.43 911.31 978.57 984.09 986.24 984.12 988.84 994.62 18 Ireland/pound1 161.32 142.05 124.81 121.87 117.99 117.41 119.15 115.85 112.91 19 Israel/shekel n.a. 24.407 55.865 49.614 55.949 60.059 77.808 89.344 100.599 20 Italy/lira 1138.60 1354.00 1519.30 1533.41 1589.74 1602.62 1582.81 1625.79 1666.88 71 Japan/yen 220.63 249.06 237.55 240.52 244.46 242.35 232.89 235.03 234.46 22 Malaysia/ringgit 2.3048 2.3395 2.3204 2.3319 2.3523 2.3506 2.3451 2.3450 2.3407 23 Mexico/peso 24.547 72.990 155.01 149.36 151.59 152.20 157.18 162.36 164.84 24 Netherlands/guilder 2.4998 2.6719 2.8543 2.8985 2.9912 2.9844 2.9206 3.0078 3.0856 2.5 New Zealand/dollar1 86.848 75.101 66.790 65.383 65.100 65.316 66.162 65.854 65.120 26 Norway/krone 5.7430 6.4567 7.3012 7.3280 7.4641 7.4271 7.3244 7.4696 7.7237 77 Peru/sol n.a. 694.59 1610.20 1645.99 1853.18 1995.33 2074.82 2131.13 2213.73 28 Philippines/peso 7.8113 8.5324 11.0940 11.050 11.050 11.050 13.750 14.050 14.050 29 Portugal/escudo 61.739 80.101 111.610 119.03 123.03 124.41 124.41 127.82 131.91 30 Singapore/dollar 2.1053 2.1406 2.1136 2.1294 2.1416 2.1417 2.1350 2.1334 2.1317 31 South Africa/rand1 114.77 92.297 89.85 91.19 89.55 89.86 88.82 84.23 82.15 37 South Korea/won n.a. 731.93 776.04 779.88 787.19 790.83 791.37 796.32 799.23 33 Spain/peseta 92.396 110.09 143.500 147.973 151.302 152.022 151.30 154.66 158.01 34 Sri Lanka/rupee 18.967 20.756 23.510 24.082 24.257 24.397 24.410 24.572 24.767 35 Sweden/krona 5.0659 6.2838 7.6717 7.6936 7.8585 7.8773 7.7844 7.9201 8.0608 36 Switzerland/franc 1.9674 2.0327 2.1006 2.1184 2.1632 2.1623 2.1122 2.1701 2.1983 37 Taiwan/Dollar n.a. n.a. n.a. n.a. n.a. n.a. 39.420 38.780 39.613 38 Thailand/baht 21.731 23.014 22.991 22.990 22.990 22.990 22.990 22.990 22.992 39 United Kingdom/pound1 202.43 174.80 151.59 152.73 150.26 149.86 149.69 147.66 143.38 40 Venezuela/bolivar 4.2781 4.2981 10.6840 12.595 15.600 13.833 13.088 12.782 12.834 MEMO: United States/dollar2 102.94 116.57 125.34 126.62 129.77 129.74 127.50 130.26 132.84 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 December 1983 A84 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, June 30, 1983 December 1983 A68 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 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1983 December 1983 A74 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 RALPH W. SMITH, JR., Assistant Director JOHN E. RYAN, 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 EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Equal Employment Opportunity STEPHEN R. MALPHRUS, Assistant Staff Director Programs Adviser for Office Automation and Technology DIVISION OF FEDERAL RESERVE DIVISION OF DATA PROCESSING BANK OPERATIONS CHARLES L. HAMPTON, Director CLYDE H. FARNSWORTH, JR., Director BRUCE M. BEARDSLEY, Deputy Director ELLIOTT C. MCENTEE, Associate Director GLENN L. CUMMINS, Assistant Director DAVID L. ROBINSON, Associate Director NEAL H. HILLERMAN, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director ELIZABETH A. JOHNSON, Assistant Director WALTER ALTHAUSEN, Assistant Director RICHARD J. MANASSERI, Assistant Director CHARLES W. BENNETT, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director ANNE M. DEBEER, Assistant Director ROBERT J. ZEMEL, Assistant Director JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director * JOHN F. SOBALA, Assistant Director DIVISION OF PERSONNEL 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

A70 Federal Reserve Bulletin • January 1984 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 ROBERT L. NEWELL, First District ROGER E. ANDERSON, Seventh District LEWIS T. PRESTON, Second District WILLIAM H. BOWEN, Eighth District RAYMOND J. DEMPSEY, Third District E. PETER GILLETTE, JR., Ninth District JOHN G. MCCOY, Fourth District N. BERNE HART, Tenth District VINCENT C. BURKE, JR., Fifth District ELVIS L. MASON, 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, REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY Mail Stop 138, Board of Governors of the Federal Reserve OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. System, Washington, D.C. 20551. When a charge is indicat- 48 pp. $.25 each; 10 or more to one address, $.20 each. ed, remittance should accompany request and be made JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVpayable to the order of the Board of Governors of the Federal ERNMENT SECURITIES MARKET; STAFF STUDIES—PART Reserve System. Remittance from foreign residents should 1, 1970. 86 pp. $.50 each; 10 or more to one address, $.40 be drawn on a U.S. bank. Stamps and coupons are not each. PART 2, 1971. Out of print. PART 3, 1973. 131 pp. accepted. $1.00; 10 or more to one address, $.85 each. OPEN MARKET POLICIES AND OPERATING PROCEDURES— STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- one address, $1.75 each. TIONS. 1974. 125 pp. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- ANNUAL REPORT. NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or 1972. 220 pp. Each volume, $3.00; 10 or more to one $2.00 each in the United States, its possessions, Canada, address, $2.50 each. and Mexico; 10 or more of same issue to one address, THE ECONOMETRICS OF PRICE DETERMINATION CONFER- $18.00 per year or $1.75 each. Elsewhere, $24.00 per ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 year or $2.50 each. pp. Cloth ed. $5.00 each; 10 or more to one address, BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint $4.50 each. Paper ed. $4.00 each; 10 or more to one of Part I only) 1976. 682 pp. $5.00. address, $3.60 each. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1,168 pp. $15.00. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 ANNUAL STATISTICAL DIGEST pp. $4.00 each; 10 or more to one address, $3.60 each. 1971-75. 1976. 339 pp. $ 5.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1972-76. 1977. 377 pp. $10.00 per copy. 1973. 271 pp. $3.50 each; 10 or more to one address, 1973-77. 1978. 361 pp. $12.00 per copy. $3.00 each. 1974-78. 1980. 305 pp. $10.00 per copy. IMPROVING THE MONETARY AGGREGATES: REPORT OF THE 1970-79. 1981. 587 pp. $20.00 per copy. ADVISORY COMMITTEE ON MONETARY STATISTICS. 1980. 1981. 241 pp. $10.00 per copy. 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 1981. 1982. 239 pp. $ 6.50 per copy. each. 1982. 1983. 266 pp. $ 7.50 per copy. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— FEDERAL RESERVE CHART BOOK. Issued four times a year in Regulation Z) Vol. I (Regular Transactions). 1969. 100 February, May, August, and November. Subscription pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each includes one issue of Historical Chart Book. $7.00 per volume $1.00; 10 or more of same volume to one year or $2.00 each in the United States, its possessions, address, $.85 each. Canada, and Mexico. Elsewhere, $10.00 per year or FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY $3.00 each. UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- address, $1.50 each. tion to the Federal Reserve Chart Book includes one THE BANK HOLDING COMPANY MOVEMENT TO 1978: A issue. $1.25 each in the United States, its possessions, COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to Canada, and Mexico; 10 or more to one address, $1.00 one address, $2.25 each. each. Elsewhere, $1.50 each. IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- 1978. 170 pp. $4.00 each; 10 or more to one address, RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in $3.75 each. the United States, its possessions, Canada, and Mexico; 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. 10 or more of same issue to one address, $13.50 per year FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 or $.35 each. Elsewhere, $20.00 per year or $.50 each. each; 10 or more to one address, $1.50 each. THE FEDERAL RESERVE ACT, as amended through April 20, INTRODUCTION TO FLOW OF FUNDS. 1980.68 pp. $1.50 each; 1983. with an appendix containing provisions of certain 10 or more to one address, $1.25 each. other statutes affecting the Federal Reserve System. 576 PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. pp. $7.00. $13.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- ERAL RESERVE SYSTEM. SERVE STAFF STUDY, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: Truth in Leasing REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL U.S. Currency ADJUSTMENT TECHNIQUES, 1981. 55 pp. $2.75 each. What Truth in Lending Means to You FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated at least monthly. (Requests must be prepaid.) Consumer and Community Affairs Handbook. $60.00 per STAFF STUDIES.- Summaries Only Printed in the year. Bulletin Monetary Policy and Reserve Requirements Handbook. Studies and papers on economic and financial subjects that $60.00 per year. are of general interest. Requests to obtain single copies of Securities Credit Transactions Handbook. $60.00 per year. the full text or to be added to the mailing list for the series Federal Reserve Regulatory Service. 3 vols. (Contains all may be sent to Publications Services. three Handbooks plus substantial additional material.) $175.00 per year. 113. BELOW THE BOTTOM LINE: THE USE OF CONTINGEN- Rates for subscribers outside the United States are as CIES AND COMMITMENTS BY COMMERCIAL BANKS, by follows and include additional air mail costs: Benjamin Wolkowitz and others. Jan. 1982. 186 pp. Federal Reserve Regulatory Service, $225.00 per year. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- Each Handbook, $75.00 per year. DENCE ON COMPETITION AND PERFORMANCE IN BANK- WELCOME TO THE FEDERAL RESERVE. December 1982. ING MARKETS, by Timothy J. Curry and John T. Rose. PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- Jan. 1982. 9 pp. CATIONS 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- SUSTAINABLE RECOVERY: SETTING THE STAGE. November UCT MIX IN THE U.S. PAYMENTS MECHANISM, by 1982. David B. Humphrey. Apr. 1982. 18 pp. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL 116. DIVISIA MONETARY AGGREGATES: COMPILATION, HUMAN RELATIONS AWARD DINNER, December 1982. DATA, AND HISTORICAL BEHAVIOR, by William A. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION Barnett and Paul A. Spindt. May 1982. 82 pp. CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT CISCO. March 1983. ALLOCATION, by Glenn Canner. June 1982. 8 pp. RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. 118. INTEREST RATES AND TERMS ON CONSTRUCTION VOLCKER. April 1983. LOANS AT COMMERCIAL BANKS, by David F. Seiders. CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON July 1982. 14 pp. COSTS, PRICES, AND RETAIL SALES. 119. STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN July 1983. 114 pp. UPDATED SUMMARY AND EVALUATION, by Stephen A. Rhoades. Aug. 1982. 15 pp. 120. FOREIGN SUBSIDIARIES OF U.S. BANKING ORGANIZA- TIONS, by James V. Houpt and Michael G. Martinson. CONSUMER EDUCATION PAMPHLETS Oct. 1982. 18 pp. Short pamphlets suitable for classroom use. Multiple copies 121. REDLINING: RESEARCH AND FEDERAL LEGISLATIVE available without charge. RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. 122. BANK CAPITAL TRENDS AND FINANCING, by Samuel Alice in Debitland H. Talley. Feb. 1983. 19 pp. Out of print. Consumer Handbook to Credit Protection Laws 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING The Equal Credit Opportunity Act and . . . Age COMPANIES, by John T. Rose and Samuel H. Talley. The Equal Credit Opportunity Act and . . . Credit Rights in May 1983. 11 pp. Housing 124. INTERNATIONAL BANKING FACILITIES AND THE EU- The Equal Credit Opportunity Act and . . . Doctors, Law- RODOLLAR MARKET, by Henry S. Terrell and Rodney yers, Small Retailers, and Others Who May Provide Inci- H. Mills. August 1983. 14 pp. dental Credit 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY The Equal Credit Opportunity Act and . . . Women AGGREGATES: A MODEL-BASED APPROACH, by David Fair Credit Billing A. Pierce, Michael R. Grape, and William P. Federal Reserve Glossary Cleveland. August 1983. 23 pp. Guide to Federal Reserve Regulations 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- How to File A Consumer Credit Complaint KET INTERVENTION, by Donald B. Adams and Dale W. If You Borrow To Buy Stock Henderson. August 1983. 5 pp. If You Use A Credit Card *127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Instructional Materials of the Federal Reserve System VENTION: JANUARY-MARCH 1975, by Margaret L. Series on the Structure of the Federal Reserve System Greene. The Board of Governors of the Federal Reserve System *128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- The Federal Open Market Committee VENTION: SEPTEMBER 1977-OcTOBER 1981, by Federal Reserve Bank Board of Directors Margaret L. Greene. Federal Reserve Banks *129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Monetary Control Act of 1980 VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret Organization and Advisory Committees L. Greene. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON INTER- REPRINTS OF BULLETIN ARTICLES NATIONAL TRADE AND OTHER ECONOMIC VARIABLES: Most of the articles reprinted do not exceed 12 pages. A REVIEW OF THE LITERATURE, by Victoria S. Farrell with Dean A. DeRosa and T. Ashby McCown. January Survey of Finance Companies. 1980. 5/81. 1984. 21 pp. Bank Lending in Developing Countries. 9/81. 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- The Commercial Paper Market since the Mid-Seventies. 6/82. DEUTSCHE MARK INTERVENTION, by Laurence R. Applying the Theory of Probable Future Competition. 9/82. Jacobson. October 1983. 8 pp. International Banking Facilities. 10/82. 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- U.S. International Transactions in 1982. 4/83. TWEEN EXCHANGE RATES AND INTERVENTION: A New Federal Reserve Measures of Capacity and Capacity REVIEW OF THE TECHNIQUES AND LITERATURE, by Utilization. 7/83. Kenneth Rogoff. October 1983. 15 pp. Foreign Experience with Targets for Money Growth. 10/83. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Intervention in Foreign Exchange Markets: A Summary of VENTION, AND INTEREST RATES: AN EMPIRICAL IN- Ten StaflF Studies. 11/83. VESTIGATION, by Bonnie E. Loopesko. November 1983. 20 pp. 134. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET INTERVENTION: A REVIEW OF THE LITERATURE, by Ralph W. Tryon. October 1983. 14 pp. *135. SMALL EMPIRICAL MODELS OF EXCHANGE MARKET INTERVENTION: APPLICATIONS TO CANADA, GERMANY, AND JAPAN, by Deborah J. Danker, Richard A. Haas, Dale W. Henderson, Steven A. Symansky, and Ralph W. Tryon. The availability of these studies will be announced in a forthcoming BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 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 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 23 Banks, by classes, 17-20 Turnover, 14 Domestic finance companies, 37 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Foreign banks, U.S. branches and agencies, 22 Reserves and related items, 3, 4, 5, 12 Nonfinancial corporations, 36 Deposits (See also specific types) Savings institutions, 28 Banks, by classes, 3, 17-21, 28 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 40, 41 Turnover, 14 Production, 46, 47 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS acceptances, 9, 24, 26 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 17-20 (See also Foreigners) Dividends, corporate, 35 Bonds (See also U.S. government securities) 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 fund, 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 liabilites) 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 (See also Thrift institutions) Flow of funds, 42, 43 Currency and coin, 17 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 22 Customer credit, stock market, 27 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 18, 19, 20 DEBITS to deposit accounts, 14 Foreign exchange rates, 66 Debt (See specific types of debt or securities) Foreign trade, 53 Demand deposits Foreigners Adjusted, commercial banks, 14 Claims on, 54, 56, 59, 60, 61, 63 Banks, by classes, 17-21 Liabilities to, 20, 53, 54-58, 62, 64, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 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 International organizations, 56, 57-59, 62-65 agencies, 33 Inventories, 50 Foreign transactions, 64 Investment companies, issues and assets, 35 New issues, 34 Investments (See also specific types) Prices, 27 Banks, by classes, 17-20, 28 Special drawing rights, 4, 10, 52, 53 Commercial banks, 3, 15, 17-20, 21, 39 State and local governments Federal Reserve Banks, 10, 11 Deposits, 18-20 Savings institutions, 28, 39 Holdings of U.S. government securities, 31 New security issues, 34 LABOR force, 45 Ownership of securities issued by, 18, 19, 20, 28 Life insurance companies (See Insurance companies) Rates on securities, 3 Loans (See also specific types) Stock market, 27 Banks, by classes, 17-20 Stocks (See also Securities) Commercial banks, 3, 15, 17-20, 21, 25 New issues, 34 Federal Reserve Banks, 4, 5, 6, 10, 11 Prices, 27 Insured or guaranteed by United States, 38, 39 Savings institutions, 28, 39 Student Loan Marketing Association, 33 MANUFACTURING TAX receipts, federal, 30 Capacity utilization, 44 Thrift institutions, 3 (See also Credit unions, Mutual Production, 44, 47 savings banks, and Savings and loan associations) Margin requirements, 27 Time and savings deposits, 3, 8, 13, 16, 17-21 Member banks (See also Depository institutions) Trade, foreign, 53 Federal funds and repurchase agreements, 5 Treasury currency, Treasury cash, 4 Reserve requirements, 7 Treasury deposits, 4, 10, 29 Mining production, 47 Treasury operating balance, 29 Mobile homes shipped, 48 UNEMPLOYMENT, 45 Monetary and credit aggregates, 3, 12 U.S. government balances Money and capital market rates (See Interest rates) Commercial bank holdings, 17, 18, 19, 20 Money stock measures and components, 3, 13 Treasury deposits at Reserve Banks, 4, 10, 29 Mortgages (See Real estate loans) U.S. government securities Mutual funds (See Investment companies) Bank holdings, 16, 17-20, 22, 31 Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also Dealer transactions, positions, and financing, 32 Thrift institutions) Federal Reserve Bank holdings, 4, 10, 11, 31 Foreign and international holdings and transactions, 10, NATIONAL defense outlays, 30 31, 65 National income, 50 Open market transactions, 9 Outstanding, by type and holder, 28, 31 OPEN market transactions, 9 Rates, 3, 26 U.S. international transactions, 52-65 PERSONAL income, 51 Utilities, production, 47 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

A77 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 ETMorris 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 William H. Knoell Karen N. Horn E. Mandell de Windt William H. Hendricks Cincinnati 45201 Clifford R. Meyer Robert E. Showalter Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 William S. Lee, III Robert P. Black Leroy T. Canoles 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 John H. Weitnauer, Jr. Robert P. Forrestal Bradley Currey, Jr. Vacancy 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 Stanton R. Cook Silas Keehn Edward F. Brabec 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 Doris M. Drury Roger Guffey Irvine O. Hockaday, Jr. 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 Robert D. Rogers 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

A78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Si«l|gi r fcgirLV.y/ _ \ , \ X 1 t , Minneapolis^ < ©' —V—J ® V Chicago OmaAaA /W.TZS- I pncinW „ . „ . L \\ (li gmm ^ • '••^fr.lj'' C • y' SHH 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

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT sumer credit protections. This 44-page booklet ex- PUBLICATIONS plains how to use the credit laws to shop for credit, apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to use Truth in Lending of charge from Publications Services, Mail Stop 138, information to compare credit costs. Board of Governors of the Federal Reserve System, The Board also publishes the Consumer Handbook Washington, D.C. 20551. Multiple copies for classto Credit Protection Laws, a complete guide to con- room use are also available free of charge. The Equal Credit LGCMQ Opportunity Act LE4SING and . .. LE4SMG The Equal Credit LE4SMG Opportunity Act and TRUTH IN LE4SING Credit Rights In Housing What Thithln Lending Means ToYou The Equal Credit Opportunity Act I ...andl IF YOU USE A CREDIT CARD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE REGULATORY SERVICE The Securities Credit Transactions Handbook contains Regulations G, T, U, and X, dealing with exten- To promote public understanding of its regulatory sions of credit for the purchase of securities, together functions, the Board publishes the Federal Reserve with all related statutes, Board interpretations, rul- Regulatory Service, a three-volume looseleaf service ings, and staff opinions. Also included is the Board's containing all Board regulations and related statutes, list of OTC margin stocks. interpretations, policy statements, rulings, and staff The Consumer and Community Affairs Handbook opinions. For those with a more specialized interest in contains Regulations B, C, E, M, Z, AA, and BB and the Board's regulations, parts of this service are associated materials. published separately as handbooks pertaining to mon- For domestic subscribers, the annual rate is $175 for etary policy, securities credit, and consumer affairs. the Federal Reserve Regulatory Service and $60 for These publications are designed to help those who each handbook. For subscribers outside the United must frequently refer to the Board's regulatory materi- States, the price including additional air mail costs is als. They are updated at least monthly, and each $225 for the Service and $75 for each Handbook. All contains conversion tables, citation indexes, and a subscription requests must be accompanied by a check subject index. or money order payable to Board of Governors of the The Monetary Policy and Reserve Requirements Federal Reserve System. Orders should be addressed Handbook contains Regulations A, D, and Q plus to Publications Services, Mail Stop 138, Federal Rerelated materials. For convenient reference, it also serve Board, 20th Street and Constitution Avenue, contains the rules of the Depository Institutions N.W., Washington, D.C. 20551. Deregulation Committee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis