Federal Reserve Bulletin, 1984-03

VOLUME 70 • NUMBER 3 • MARCH 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 BULLETIN is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 177 A MONETARY PERSPECTIVE ON 213 ANNOUNCEMENTS UNDERGROUND ECONOMIC ACTIVITY Approval of revised fee schedule for auto- IN THE UNITED STATES mated clearinghouse services and a plan to A growing underground economy, which is reduce and price ACH float. thought to reflect efforts to evade taxes and Approval of the inclusion of certain deposigovernment regulation, has been widely retory institutions in the program to accelerported in the United States and in other ate the collection of checks. countries in recent years. Revisions to data on the money stock and 191 TREASURY AND FEDERAL RESERVE reserves. FOREIGN EXCHANGE OPERATIONS Issuance of policy statement on delayed From August 1983 through January 1984, disbursement practices. the dollar rose strongly on balance against New members appointed to Thrift Instituthe European currencies, but was little tions Advisory Council. changed against the Japanese yen. Consumer Advisory Council meeting. 204 INDUSTRIAL PRODUCTION Proposal that the federal financial institu- Output rose about 1.2 percent in February. tion regulators issue a joint policy statement on disclosure of practices regarding delayed 206 STATEMENTS TO CONGRESS availability of funds; proposal of nine nonbanking activities as permissible for bank Paul A. Volcker, Chairman, Board of Govholding companies; extension of the comernors of the Federal Reserve System, disment period on certain proposals related to cusses the prospects and challenges for Regulations E and Z. monetary and fiscal policies for the remainder of 1984 and the years ahead, before the Changes in Board staff. Senate Committee on the Budget, February Admission of eight banks to membership in 29, 1984. the Federal Reserve System. 210 Henry C. Wallich, Member, Board of Governors, says that the large and growing 219 LEGAL DEVELOPMENTS merchandise trade and current account deficits have raised strong concerns about the Amendments to Regulation J; various bank state of U.S. tradable goods industries and holding company and bank merger orders; the prospect that funds borrowed from and pending cases. abroad, along with the deficits, will soon transform the United States into a net debt- 253 DIRECTORS OF THE FEDERAL RESERVE or economy, before the Subcommittee on BANKS AND BRANCHES Commerce, Transportation and Tourism of the House Committee on Energy and Com- List of directors by Federal Reserve Dismerce, March 6, 1984. trict. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al FINANCIAL AND BUSINESS STATISTICS A80 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics A82 FEDERAL RESERVE BOARD A52 International Statistics PUBLICATIONS A85 INDEX TO STATISTICAL TABLES A67 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL A87 FEDERAL RESERVE BANKS, BRANCHES, TABLES AND OFFICES A78 BOARD OF GOVERNORS AND STAFF A88 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity in the United States This article was prepared by Richard D. Porter billion in 1981, while unreported income from the and Amanda S. Bayer of the Board's Division of three selected illegal activities grew at a 17.7 Research and Statistics. Footnotes appear at the percent annual rate, from $9.3 billion to $34.2 end of the article. billion. To estimate unreported income from legal sources, the IRS drew mainly upon data on A growing underground economy in the United individual taxpayers from its Taxpayer Compli- States and in other countries has been widely ance Measurement Program, which audits a samreported in recent years. The underground econ- ple of income tax returns, and upon data from its omy is thought to reflect efforts to evade taxes Information Returns Program, which uses inforand government regulation. Although no single mation from the payers of income. It developed definition of such activity has been universally estimates of unreported income from legal accepted, the term generally refers to activity— sources for individuals not filing returns by whether legal or illegal—generating income that cross-checking information from two nationwide is either underreported or not reported at all. household surveys against its own records and Some investigators narrow the definition to cov- those of the Social Security Administration. Fier only income produced in legal activity that is nally, the IRS estimated unreported income obnot reported in the national income statistics. tained in the selected illegal activities from sur- Discussion of underground economic activity vey data and arrest records. intensified in the late 1970s with the publication This approach to estimating the size of the of two estimates, derived from aggregate mone- underground economy has been subject to crititary statistics, of the size of the underground cism. Some contend that the estimates derived economy in the United States, one by Peter from administrative records and surveys are like- Gutmann and the other by Edgar Feige.1 Since ly to understate actual unreported income. They then, numerous estimates have been made of the believe that estimates derived from monetary scope of this sector in the United States and in statistics offer a better gauge of underground other countries. The magnitude of some of these activity and unreported income. estimates has occasioned congressional hearings Aside from issues such as the underpayment of and various government studies. In 1979, the tax liabilities, the existence of an underground Internal Revenue Service (IRS) estimated that economy that may be growing relative to the for 1976, individuals failed to report between $75 recorded economy creates problems for analyses billion and $100 billion in income from legal of public policy issues, including monetary polisources and another $25 billion to $35 billion cy. For example, policies developed from data from three types of illegal activity—drugs, gam- on the recorded economy may not necessarily bling, and prostitution.2 In 1983, the estimates of stabilize the total economy; or, movements in unreported income from legal sources for 1976 monetary aggregates that reflect changes in the were raised to $131.5 billion while the estimates underground economy may be interpreted as of income from illegal sources dropped to $13.4 signaling change in the recorded economy. Thus billion.3 policymakers need to assess the scope of the In this more recent study, the IRS estimated underground economy to see whether these pothat unreported income from legal sources grew tential issues deserve more explicit considerat a 13 percent annual rate over roughly the last ation. decade, from $93.9 billion in 1973 to $249.7 This article evaluates estimates of the size and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

178 Federal Reserve Bulletin • March 1984 growth of underground activity based on several "Normal" or aboveground currency in any perimonetary-statistic methods. The article also ex- od is then defined to be in the same proportion to amines some of the reasons for the growth of per actual checkable deposits in that period as total capita currency holdings, particularly in larger currency was to checkable deposits in the benchdenominations—another phenomenon cited as mark period; accordingly, underground currency evidence of underground activity.4 is the difference between currency in circulation and estimated aboveground currency. The estimated size of the underground economy is deter- CURRENCY-RATIO METHOD mined as the product of underground currency and the income velocity (the ratio of income to The earliest monetary-statistic approach to esti- money) of aboveground Ml, which is the sum of mating the size of the underground economy aboveground currency and all checkable deposrelies on an analysis of movements in the ratio of its. The last step in the calculation is based on the currency to checkable deposits—the currency assumption that income velocity is the same in ratio. In this technique the underlying assump- the underground and the aboveground sectors. tion is that the currency ratio in the aboveground Currency-ratio estimates of underground gross economy is constant over time. Because of this national product appear in table 1, column 1. assumption an increase in the amount of money These figures suggest that the dollar level of held as currency relative to that held in check- underground activity was little changed until the able deposits is interpreted as a relative rise in middle 1970s, but almost tripled between 1975 underground economic activity.5 To implement and 1982, reaching $450 billion. As a percent of the method, a benchmark period is selected that recorded GNP, the size of the underground econis assumed to be free of underground activities. omy remained roughly constant until the 1970s. 1. Computed underground GNP, alternative methods and selected years, 1950-82' SSiimmppllee MMooddiiffiieedd Tanzi's model of the ratio Transaction-ratio method ccuurrrreennccyy-- ccuurrrreennccyy-- of currency to M2 YYeeaarr rraattiioo rraattiioo mmeetthhoodd mmeetthhoodd22 (TW) (T) 1939 base 1964 base2 (1) (2) (3) (4) (5) (6) Billions of dollars 1950 15.9 21.5 14.5 9.4 27.6 43.1 1955 14.7 15.6 12.8 10.9 1.7 21.6 1960 17.3 17.1 20.7 13.2 -3.4 21.5 1965 31.6 38.6 26.3 17.1 9.6 44.3 1970 62.4 88.5 45.6 25.3 101.0 155.2 1975 150.8 246.0 77.0 46.6 467.3 567.1 1978 266.1 460.2 114.2 80.9 551.1 685.5 1979 317.8 558.5 130.7 88.6 628.4 779.2 1980 372.8 666.9 159.9 116.9 1,095.6 1,280.1 1981 427.1 767.6 n.a. n.a. 1,765.6 1,999.2 1982 449.7 810.5 n.a. n.a. n.a. n.a. Ratio to recorded GNP, percent 1950 5.6 7.5 5.1 3.3 9.6 15.1 1955 3.7 3.9 3.2 2.7 .4 5.4 1960 3.4 3.4 4.1 2.6 -.7 4.2 1965 4.6 5.6 3.8 2.5 1.4 6.4 1970 6.3 8.9 4.6 2.6 10.2 15.6 1975 9.7 15.9 5.0 3.0 30.2 36.6 1978 12.3 21.3 5.3 3.7 25.5 31.7 1979 13.1 23.1 5.4 3.7 26.0 32.2 1980 14.2 25.3 6.1 4.4 41.6 48.6 1981 14.5 26.0 n.a. n.a. 59.8 67.7 1982 14.6 26.4 n.a. n.a. n.a. n.a. 1. For a description of each method see the text. n.a. Not available. 2. It is assumed that underground GNP equals 5 percent of observed GNP in 1964. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 179 The proportion then increased sharply after whenever the share of wages and salaries in 1975, to a sizable 14.6 percent in 1982. national income or the level of taxes rises. The last variable reflects the presumed pecuniary advantage of engaging in underground activity to MODIFIED CURRENCY-RATIO METHOD evade taxes, with a step-up in tax rates fostering a relative rise in underground activity and induc- In 1980 Feige modified the currency-ratio meth- ing an increase in desired currency holdings od to make it conform more closely to what he relative to other balances in M2. believed were the actual practices in the under- To calculate the size of the underground econground economy.6 Whereas the simple currency- omy, Tanzi estimates his model using annual ratio method postulates that currency is the data for the years 1930 to 1980.9 Two simulations exclusive medium of exchange in the under- are then conducted. In the first, all explanatory ground economy, Feige argues that some firms variables take on their actual historical values to and households use checks for such transactions produce a predicted currency series that is conbecause they perceive that the ease of doing so sistent with the actual tax rates in each period. In outweighs the costs of leaving a "paper" audit the second simulation the tax rates are set equal trail. He also contends that the underground to zero rather than their historical values. The sector is service-oriented. Because fewer inter- difference between the two predicted amounts of mediate transactions occur in the production of currency is Tanzi's estimate of the amount of services, the amount of money balances per money in use in underground activities. As in the dollar of output is smaller in this sector than in simple currency-ratio method, the income velocthe aboveground sector. Feige therefore assumes ities of underground and aboveground money that the currency ratio in the underground sector balances are assumed to be identical. Underequals two and that the income velocity of under- ground GNP is therefore the product of the ground money is 10 percent higher than its estimated stock of underground currency and the aboveground counterpart.7 income velocity of aboveground Ml balances. The modified currency-ratio estimates of un- Table 1, columns 3 and 4, presents the size of derground GNP for selected years are shown in underground activity estimated with this model table 1, column 2. For the mid-1960s, this meth- using two tax measures: TW, a weighted average od gives higher estimates of underground GNP tax rate on interest income, and T, the ratio of than does the simple currency-ratio method; total net tax payments to adjusted gross income. beginning in the 1970s the gap between the two Because both sets of estimates remain in a relaestimates widens greatly; and by 1982 the modi- tively narrow range around 5 percent of recorded fied currency-ratio estimate of underground GNP, they provide a striking contrast to the GNP, at 26.4 percent of aboveground GNP, is previous currency-ratio estimates. The figures almost twice the estimate derived from the sim- indicate only a slight upward trend in the relative pler approach. size of the underground economy; even for 1980 (the most recent year for which data are available), Tanzi estimates that underground GNP A VARIANT OF THE CURRENCY-RATIO equaled only 6.1 percent (TW) or 4.4 percent (7) METHOD: TANZI S METHOD of aboveground GNP. Another variant of the currency-ratio method has been used by Vito Tanzi to estimate underground TRANSACTION-RATIO METHOD activity.8 Tanzi develops an explicit empirical model of the ratio of currency to M2 that links The ratio of total monetary transactions to gross the size of the underground economy to the national product is the main ingredient of the incentive to evade taxes. Specifically, the de- second basic approach to estimating undermand for currency relative to M2 rises whenever ground activity, the transaction-ratio method dereal per capita income or the rate of interest on veloped by Feige.10 Feige proposes that monetime deposits (which are included in M2) falls, or tary transactions in underground activity will be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

180 Federal Reserve Bulletin • March 1984 recorded in measures of total transactions but economy for each of the various monetaryexcluded from recorded income. Thus changes in statistic methods just described. The effort here the ratio of transactions to income will reflect (and in the next section, which looks at currency changes in the underground economy. The key data) is to explain the observed behavior of assumption underlying Feige's approach is that currency and transactions in traditional, abovetotal transactions, the sum of debits to checkable ground terms, and thus avoid an underground deposits and the total dollar volume of currency explanation except as a last resort. The abovetransactions, are proportional to total economic ground explanations are firmly rooted in ecoactivity ("total" here meaning the sum of above- nomic theory and established empirical work, ground and underground activity). Because total while, as will be shown, a number of the undertransactions include direct transfer payments, ground arguments bear only a tenuous relation to which exhibit a changing pattern over time, and accepted theory and empirical practice. purely financial transactions, which have in- The starting point is the observation that all of creased dramatically in response to various fi- the methods except Tanzi's yield sharply innancial innovations, Feige reformulates his origi- creasing ratios of underground GNP to abovenal assumption in terms of the proportionality ground GNP since the late 1960s, particularly between a net transaction measure and total after 1975. Such a pattern implies a sharp inincome. To derive a net transaction measure crease in the total GNP velocity of Ml, the ratio appropriate for estimating underground activity, of the sum of aboveground and underground he adjusts gross transactions by deducting sever- GNP to the level of Ml. Table 2 displays the al categories of major financial transactions and level and growth rates of total GNP velocity for direct transfers.11 three monetary-statistic methods for some of the Given these adjustments, the calculation of years given in table l.12 As the table indicates, underground GNP proceeds in much the same the velocities of total and recorded GNP grew on fashion as in the currency-ratio method: above- average at an annual rate of between 3.1 and 3.5 ground transactions are determined as the prod- percent from 1950 to 1970. From 1975 onward, uct of the ratio of transactions to GNP in the however, the estimated growth rates of total benchmark period (which is assumed to be free GNP velocity accelerate relative to those for of underground activity) and recorded GNP. The recorded GNP velocity, which stays close to its excess of actual transactions over aboveground long-run historical trend rate of change. For transactions defines the level of underground example, total GNP velocity for the transactiontransactions for any given year. Underground ratio method using the 1939 base grows at an income can then be inferred from the benchmark annual rate of 7.6 percent from 1975 to 1981, ratio of transactions to income. more than double the rate for the period 1950-70. Table 1 lists alternative transaction-ratio esti- Those who believe that both money demand and mates of underground GNP. The estimates in the aggregate economy are stable in the long run column 5 are based on a 1939 benchmark period, will regard such a sharp change in the trend of while those in column 6 assume that under- velocity as highly unlikely. ground GNP was 5 percent of recorded GNP in a Another reason for skepticism stems from the 1964 base period. The transaction-ratio estimates apparent contradiction between such large estiof the size of underground activity are even mates of underground activity and the results of larger than those estimated from the currency- a substantial body of empirical work. Although ratio methods, rising from approximately 10 or the underground economy may influence the 15 percent of reported GNP in 1970 to more than relative amount of currency holdings, many oth- 60 percent by 1981. er important factors are ignored by the advocates of the currency-ratio approach. The behavior of A CRITIQUE OF THE MONETARY-STATISTIC currency relative to checkable deposits or to M2 METHODS can, in fact, be explained with some accuracy by standard empirical demand equations that do not rely upon underground motives. Specifically, the This section evaluates the assumptions, procestandard macroeconomic approach to analyzing dures, and estimated size of the underground Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 181 2. Implied total income velocity of money by alternative methods of estimating underground activity, and recorded velocity1 Transaction-ratio method Simple Modified currency- currency- Velocity of Ml based Year or period ratio ratio on recorded GNP method method 1939 base 1964 base Implied velocity 1960 3.705 3.704 3.559 3.735 3.583 1965 4.378 4.420 4.245 4.455 4.186 1970 4.9% 5.120 5.180 5.436 4.701 1975 5.967 6.301 7.077 7.428 5.436 1978 6.929 7.483 7.742 8.125 6.168 1979 7.242 7.879 8.064 8.463 6.400 1980 7.487 8.220 9.288 9.748 6.558 1981 7.864 8.656 10.977 11.520 6.870 1982 7.691 8.479 n.a. n.a. 6.711 Average annual growth of implied velocity 1950-70 3.1 3.4 3.3 3.1 3.5 1975-81 4.7 5.4 7.6 7.6 4.0 1975-82 3.7 4.3 n.a. n.a. 3.1 1. Velocity is measured as the ratio of the sum of aboveground (or n.a. Not available. recorded) GNP and underground GNP to an Ml measure. these ratios involves a model based on theories deposits, however, includes a shift variable for of the demand for money involving aboveground the two and one-half years from 1974:3 to 1976:4; transactions or portfolio considerations. when this variable is removed, the model's equa- As an indication of what the standard ap- tion, like most conventional demand equations, proach can explain, charts 1 and 2 display actual overpredicts demand deposits and, by implicaand predicted values of the alternative ratios tion, underpredicts the ratio of currency to from simulations using the Federal Reserve checkable deposits. Board's quarterly econometric model.13 The ex- Although this failure to explain the spurt in the planation rests primarily on interest rates, in- actual currency ratio might be viewed as evicome, wealth, and prices, with no reference to dence of an active underground economy, anothunderground activity. In general, the model's er explanation is perhaps more likely. The Board demand equations for the components of Ml and model and other models provide no evidence of M2 fit the data fairly well. The equation explain- any unexplained strength in currency itself during the demand deposit component of checkable ing this period; the shortfall in predicting the currency ratio stems principally from the unexplained weakness in demand deposits.14 Extensive analysis of this weakness in demand deposits suggests that, facing persistently high opportunity costs of holding demand deposits, deposit holders sought to improve their money management techniques.15 This quest was aided .40 by improvements in computer and telecommunications technology, by the development of various cash management procedures such as cash .30 concentration accounts and remote disbursement facilities, and by the growing use of new financial instruments that complemented many of these new techniques. 1. Predicted using the Federal Reserve Board's quarterly econometric model. More important, the simple and modified cur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

182 Federal Reserve Bulletin • March 1984 2. Actual and predicted ratios of currency to M2 positive relationship between the ratio of curren- Dollars/dollar cy to M2 and taxes is strong only for the period from 1930 to 1945.17 Indeed, the relationship .10 breaks down in the postwar period, and thus Tanzi's model provides little evidence that an increase in taxes spurs an increase in underground activity.18 Each of the three currency-based methods involves arbitrary choices about relative income velocities, the proportions of currency and checkable deposits used in the tw0 sectors, and the benchmark period.19 In addition, these meth- 1. Predicted using the Federal Reserve Board's quarterly econo- ods contain the implicit assumption that recordmetric model. ed GNP covers no underground activity. In fact, the Bureau of Economic Analysis (BEA) of the Department of Commerce compiles estimates of rency-ratio methods ignore these ongoing tech- the national income and product accounts in nological and financial innovations because they recognition of the many distortions in the underboth assume that the ratio of checkable deposits lying sources erf GNP data ^created by legal to currency is constant in the two sectors. This activity in the underground economy. Although assumption is made solely for technical conve- BEA's success in limiting such distortions may nience, of course, but it does have the effect of be debated, it is erroneous to assume that reportdenying any role whatsoever to important eco- ed GNP reflects only the aboveground economy. nomic determinants of these ratios such as inter- For instance, underreporting of income for tax est rates. For example, the introduction of nego- purposes creates few serious statistical problems tiable order of withdrawal accounts nationwide in the national income accounts because IRS in 1981 and Super NOW accounts in 1983 low- data do not play an important role in developing ered the opportunity cost of holding transaction estimates of national income. But where IRS accounts (the difference between an open market sources must be used, reported income is adjustyield such as a Treasury bill rate and the own ed on the basis of the IRS audit studies. In yield on the NOW account), making it relatively general, BEA prefers methods that impute a more attractive to hold balances in such accounts value of income, and such methods often are rather than in currency. Because the currency- independent of whether a recorded monetary ratio methods do not account for such above- transaction has taken place. As a result, recordground innovations, they incorrectly attribute the ed GNP reflects at least some part of the legal induced change in the observed currency ratio to underground economy. Furthermore, recently developments in the underground economy. BEA has sought to adopt procedures that better While conventional empirical work predicts estimate the component of underground activity the ratio of currency to M2 fairly accurately, that is conceptually consistent with its measures Tanzi's model does also, so that his work merits of income and product. The currency-ratio metha closer look.16 In contrast to standard money ods, nevertheless, are based on the assumption demand approaches, which assume only motives that recorded GNP is compiled independently of related to aboveground transactions and portfo- transactions in the underground economy. As a lio considerations for holding currency and de- result, the currency-ratio estimates of unrecordposits, Tanzi's approach includes an explicit tax ed GNP are invariant to changes in the way term in the demand equation for currency rela- recorded GNP is estimated. Presumably, imtive to M2 to represent the incentive to evade proved estimates of recorded GNP alter the ratio taxes. The quality of the resulting estimates of of unrecorded to recorded GNP. Because estithe size of underground activity depends on the mates of underground activity based on currenaccuracy of the underlying specification and esti- cy-ratio procedures do not reflect such changes, mation of the tax effect. The data reveal that the those estimates are probably overstated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 183 The transaction-ratio method is more difficult The recent estimates of underground GNP to evaluate because, unlike the demand for cur- from the transaction-ratio method suggest that rency and checkable deposits, total transactions increases in the transaction ratio itself are attribare not subject to any established theory. Casual utable largely to transactions in checkable deposinspection of the ratio of transactions to income its, not currency.24 Because the likelihood of suggests that it often moves positively with inter- "catching" a participant in an underground est rates. In a recent paper, Porter and Offen- transaction is probably higher when checkable bacher offer a partial explanation for such move- deposits rather than currency are used, it seems ments based on an inventory model of money counterintuitive to associate all of the implied holdings under uncertainty.20 This paper shows increase in total income arising from the increase that the volume of debits to demand deposits for in checkable deposits with underground transacbusiness firms should be positively related to tions. In addition, the 18.1 percent annual rate of both interest rates and a scale variable (which growth in total income velocity in 1981 is about serves as a proxy for the size of the firm) and four times recorded velocity growth for that year negatively related to the costs of transactions.21 (see table 2). Such a large increase in velocity is With this model, several of the major movements also unlikely and suggests that some purely fiin the ratio of transactions to GNP can be nancial component of total transactions has not explained without reference to factors associated been properly netted out, so that an upward bias with the underground economy. Nonetheless, has been imparted to the estimated transaction additional theoretical and empirical work is re- ratio for that year. Similar surges in velocity quired before the Porter-Offenbacher results can growth during other recent periods may also be be viewed as firmly established.22 due to various netting-out problems arising in the In comparison to the various currency-ratio compilation of total transactions. methods, the transaction-ratio method has sever- Thus far, this article has evaluated several al distinct advantages, at least in principle. The methods that rely on an analysis of monetary method makes no assumption regarding the rela- statistics to estimate underground economic active income velocities in the aboveground and tivity in the United States: the simple and modiunderground sectors. It also treats currency and fied currency-ratio methods, Tanzi's variant of deposits in a symmetric fashion; that is, the the currency-ratio approach, and the transactionmethod does not assume that currency is the ratio method. According to all of these methods, exclusive medium of exchange in the under- the relative size of the underground economy has ground sector or that currency and deposits are increased over the last decade; Tanzi's estimates used in fixed ratios in each of the two sectors. of underground GNP are relatively small (about 5 Moreover, improved estimates of recorded GNP percent of recorded GNP), while those produced appropriately modify the resulting estimate of by the transaction-ratio method exceed 60 perthe ratio of underground GNP to recorded GNP; cent of recorded GNP. Unfortunately, each of for example, an increase in recorded GNP will these methods has significant problems of a necessarily lower this ratio. methodological nature or in data requirements On the other hand, the transaction-ratio meth- that call into question the basic reliability of the od requires the specification of a "benchmark" approach. transaction ratio in the aboveground sector; as with the other methods, the choice of this ratio is a critical assumption. In practice, however, data AN EVALUATION OF THE CURRENCY DATA limitations are the single most important problem in implementing the transaction-ratio method: Although the monetary-statistic methods dethe dollar volume of many significant financial scribed earlier for estimating underground activitransactions is simply not compiled either pri- ty are not based exclusively on currency data, vately or publicly.23 For example, direct mea- many observers believe that the most compelling surements of the turnover of the currency stock evidence concerning the scope of the underdo not exist, and indirect procedures must be ground economy may be inferred from such data. used to estimate it. They point to the remarkably high level of cur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

184 Federal Reserve Bulletin • March 1984 rency holdings per household and the sizable 3. Ratios of currency to travelers checks, proportion that is held in large denominations. At consumption, GNP, and debt the end of December 1983, currency holdings Dollars/dollar stood at almost $1,970 per household in the United States; just under 40 percent of this stock, or nearly $800, was in hundred-dollar bills. Even allowing for the currency that is held by businesses in cash registers and by financial institutions as vault cash or that has been lost or destroyed, these magnitudes seem to contradict everyday experience.25 Even if a substantial fraction of the currency stock were held abroad, the implied level of domestic currency holdings would still be strikingly large. It is difficult to account for such currency holdings in terms of a transaction theory of the demand for money. As a rough calculation, suppose that all income were received in the form of n i i i H i i i M i i i a a i i i M ii currency and all households were paid biweekly. 1960 1965 1970 1975 1980 1983 The average household would then receive about 1. Debt in the domestic nonfinancial sector. $1,060 every two weeks.26 If, in addition, all of the currency were spent on goods and services has been excessive relative to deposits or expenduring the two-week interval between income ditures. Charts 2 and 3 show that, on balance payments, the typical household would on aver- over the past 20 years, total currency has been age have about half its original pay, or about declining, not rising, relative to other financial $530, in the form of currency. The substantial aggregates such as M2, travelers checks, or discrepancy between this predicted amount and domestic nonfinancial sector debt—or relative to actual currency balances, which are roughly four nominal expenditures such as GNP and meatimes as large, indicates the nature of the difficul- sured personal consumption. In the case of M2, ty for a transaction-based model of currency. this movement is not surprising because the Other factors, however, may account for hold- average nominal rate of return on the noncurings greater than the predicted $530. For exam- rency part of this aggregate has moved up sharpple, many households are paid less frequently ly over this period as a result of deregulation and than biweekly, at least for part of their income, higher nominal interest rates, while the nominal and some households may hold currency for pecuniary return on currency remained at zero. precautionary reasons and as a store of wealth. A similar declining pattern is apparent, at least On the other hand, several factors work to through the mid-1970s, for the ratio of currency reduce currency holdings below this hypothetical to travelers checks. This decline is somewhat average. Many households are paid exclusively unexpected because travelers checks, like curby check, and many use checkable deposits for a rency, bear no nominal rate of return but, unlike substantial part of their transactions. In addition, currency, leave a paper trail. Thus, if underhouseholds that are adding to their wealth by ground activity were relatively more important saving or are paid more frequently than biweekly over this period, that ratio should have risen, will hold less currency. On balance, it seems other things equal. Finally, currency movements difficult to explain the actual level of currency over the past years have been highly predictable holdings solely on the basis of aboveground in conventional empirical models of money detransactions; an underground explanation for mand, which relate real currency holdings per these levels must be taken seriously.27 capita to real consumption expenditures per cap- Despite the high and somewhat puzzling level ita and the opportunity cost of holding money but of currency balances per household, the evi- which make no reference to the underground dence does not suggest that growth in currency economy (chart 4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 185 4. Actual and predicted holdings of currency were used in the monetary-statistic approach, Billions of dollars the relative size of the underground economy would be approximately the same over most of the postwar period.29 Thus the evidence concerning the relative role of the underground economy based on analyzing the total currency stock is mixed. The data on currency balances held per capita (or per household) are not readily consistent with an explanation of currency based on aboveground transactions; this discrepancy perhaps indicates an important underground presence. On the other hand, currency movements over time appear to be explained reasonably well by ongoing devel- 1. Predicted using the Federal Reserve Board's quarterly econometric model. opments in the aboveground sector. Although the historical data on aggregate cur- The accurate prediction of the growth of cur- rency do not provide unequivocal support for a rency balances by conventional empirical models growing underground economy, proponents of may be fortuitous, of course. Because currency that view often point to the rising proportion of holdings are the sum of aboveground and under- hundred-dollar bills in the currency stock. They ground holdings, a relative decline in currency contend that most large aboveground transacholdings in the aboveground sector owing to tions are paid for by check, and that the growing changes in payment practices may offset a rela- use of large-denomination bills must be attributtive increase in underground currency holdings, ed principally to a growing volume of underthereby leaving the total unaffected. For exam- ground transactions. Per capita holdings of hunple, aboveground currency holders may have dred-dollar bills rose from about 0.5 in 1966 to economized on currency by using credit cards about 2.4 in 1982 (see chart 6). Even in real terms more frequently. By itself, however, this factor (1967 dollars), the change in per capita holdings seems unlikely to provide the full explanation of hundred-dollar bills is substantial: from 0.5 in because credit cards account for only a small 1966 to about 0.8 in 1982 (chart 6). Does this proportion of estimated total currency transac- relative shift to large-denomination bills mask tions—just over 2 percent in 1981.28 In addition, increased underground economic activity, or use of currency in the aboveground economy does it reflect the responses of aboveground may have declined because a growing fraction of transactors to changes in the economic environindividuals has been paid by check rather than ment? With regard to the latter possibility, it with currency. This possibility has not been should be noted that, since 1969, the hundredexplicitly recognized in the standard currency dollar bill has been the largest currency denomidemand relationship; however, the predictions of nation issued.30 Thus increases in the price level the currency equation in the Board's quarterly model are not materially altered when it is ac- 5. Currency balances per capita counted for, as Tanzi did, by using the ratio of Dollars compensation of employees to national income as an explanatory variable. Still another development calls into question the view that currency holdings provide evidence of a growing underground economy. Since the mid-1950s, aggregate currency balances (including vault cash) have only about kept pace with inflation so that real currency holdings per capita have changed only slightly (chart 5). If real per capita holdings instead of total currency holdings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

186 Federal Reserve Bulletin • March 1984 6. Holdings of $100 bills per capita model indicating that, as the dollar size of indi- Number per capita vidual transactions increases, the proportion of hundreds in the optimal mix of denominations rises. For example, as the average transaction goes from a little over $25 to a little over $100, Nominal the optimal fraction of currency represented by hundred-dollar bills rises from a 19 percent value share to a 56 percent value share. Changes in the value shares of currency held in various denominations, shown in chart 7, seem consistent with the calculations reported in table •••HH 1950 3. In 1978, the share of currency in hundreddollar bills surpassed the share in twenty-dollar that tend to increase the dollar size of transac- 7. Value shares of currency held in various tions should, other things equal, spur the use of denominations of bills hundred-dollar bills relative to other denomina- Percent tions because they are more convenient in largescale transactions.31 The importance of hundred-dollar bills in the mix of denominations can be evaluated with a model recently proposed by J. S. Cramer.32 Cramer assumed that transactors attempt to economize on the number of physical units of currency used in an exchange of a given transaction size. Table 3 presents the results of applying Cramer's model to the various bill denominations in the United States for various ranges of transaction size.33 The estimates were constructed under the assumption that all transactions up to a certain size were equally likely to occur bills. The chart shows that the last time a similar while, beyond that size, the likelihood of a event occurred was in 1942, when the amount of transaction declined as its size increased. For money represented by the twenty-dollar denomiexample, transactions of $2,000 were assumed to nation became larger than the amount held in occur less frequently than transactions of ten-dollar bills.35 Over the period from 1942 to $1,000.34 Table 3 presents calculations from this 1978, consumption expenditures per capita grew from $657 to $6,049. Thus, assuming that total transactions per capita and the average size of 3. Value shares of bills of various denominations transactions moved together, there is an abovein optimal mix of denominations ground explanation for the increasing share of for selected average transaction sizes hundred-dollar bills: per capita consumption ex- Percent penditures were more than nine times as large, Average while the size of the denomination in which the transaction $100 bills $50 bills $$2200 bbiillllss (dollars) largest proportion of currency was outstanding was five times as large. 12.69 12 13 22 25.38 19 20 33 Another, related explanation that focuses on 38.08 25 28 29 50.77 31 32 23 the use of hundred-dollar bills in the above- 63.46 37 34 18 ground sector has been developed. Essentially, 76.15 43 32 14 88.85 49 29 13 this explanation describes the relationship be- 101.54 56 25 12 114.23 62 21 10 tween per capita holdings of hundred-dollar bills 126.92 66 19 9 and the price level.36 The predictions from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 187 8. Holdings of $100 bills per capita, the own rate of return on negotiable order of actual and predicted 1 withdrawal and automatic transfer service ac- Number per capita counts; (2) an erroneous belief that recorded gross national product is estimated with no recognition of legal underground activities; and (3) either no use of checkable deposits or the fixed proportional use of currency and checkable deposits in the underground sector. Although the transaction-ratio method avoids these pitfalls, it has severe data limitations, relating especially to the separation of purely financial transactions from others. Evidence has also been gleaned from an explicit model of the ratio of currency to M2, which relates the size of the underground economy to 1. In-sample years are not shaded. Out-ot-sampie years are. the incentive to evade taxes. In contrast to the 2. Predicted by regression equation described in Richard D. Porter and Amanda S. Bayer, "Evaluating Underground Economic Activity other estimates, this method suggests that the in the United States Using Monetary Statistics," Staff Study (Board of relation of the underground sector to total eco- Governors of the Federal Reserve System, forthcoming), appendix C. nomic activity has not changed significantly. implied empirical equation are shown in chart 8. This method also makes several questionable The equation performs quite adequately in the assumptions, however: (1) the ratio of underout-of-sample period, explaining a substantial ground GNP to recorded GNP does not vary part of the recent increase of per capita holdings with the method for compiling recorded GNP; of hundred-dollar bills. and (2) underground transactions involve only These theoretical and empirical results suggest currency. Moreover, the method fails to find that the expansion in the use of hundred-dollar evidence of the predicted tax effect when estimabills is related principally to normal economic tion is restricted to the postwar period. and institutional forces at work in the above- Although the enormous size of currency holdground economy. While the amount and form of ings per capita or per household is puzzling, it currency holdings appear suspiciously large, the can be explained by standard demand relationinteraction between increases in the price level ships that relate currency holdings per capita to and the size pattern of available currency denom- real consumption expenditures per capita and to inations appears to account for the actual mix of the opportunity cost of holding currency. Indenominations in currency holdings. creases in the price level combined with explicit recognition of the available denominations of currency appear to account for changes in the SUMMARY AND CONCLUSION mix of currency denominations. The analysis of underground activity has not This article has examined several estimates of progressed enough to permit a reliable estimate the size and growth of underground activity that of the scope of such activity from an analysis of have been developed using monetary statistics. monetary data. Given current techniques, these Nearly all of these estimates imply an expansion data do not convincingly support the hypothesis in the proportion of underground activity relative that the share of the underground economy in the to total activity and a large rise in the total total U.S. economy has grown recently. Perhaps income velocity of money since 1970. Both cur- as more satisfactory data and techniques emerge, rency-ratio methods utilize readily available better estimates can be developed. In any event, data, but they depend on several questionable the issues raised in attempting to measure underassumptions. The most critical are (1) a constant ground activity by these methods pose some ratio of currency to checkable deposits in the challenging questions regarding the use of curaboveground sector despite changes in important rency and deposits as transaction media in the economic determinants such as interest rates and aggregate economy. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

188 Federal Reserve Bulletin • March 1984 FOOTNOTES equations as well as a brief explanation of their structure.) In these simulations the determinants of the ratios—interest 1. Peter M. Gutmann, "The Subterranean Economy," rates, real income, and so forth—take on their actual histori- Financial Analysts Journal, vol. 33 (November-December cal values. The underlying equations for the components of 1977), pp. 26-27; Edgar Feige, "How Big Is the Irregular these ratios were estimated over various sample periods, all Economy?" Challenge, vol. 22 (November-December 1979), of which ended in the last quarter of 1981. Thus only the last pp. 5-13. seven quarters of the simulations are beyond the estimation 2. Estimates of Income Unreported on Individual Tax period of the equations. Returns, U.S. Department of the Treasury, Publication 1104 14. See Gillian Garcia, "The Currency Ratio and the (9-79), p. ii. Subterranean Economy," Financial Analysts Journal, vol. 3. The estimates of income from illegal sources are prelim- 34 (November-December 1978), pp. 64-69; and Richard D. inary; see Internal Revenue Service, Assistant Commissioner Porter and Stephen S. Thurman, "The Currency Ratio and for Planning, Finance, and Research, Income Tax Compli- the Subterranean Economy: Additional Comments" (Board ance Research (U.S. Department of the Treasury, July 1983), of Governors of the Federal Reserve System, January 26, pp. 9, 39. 1979). 4. Richard D. Porter and Amanda S. Bayer, "Evaluating 15. The mid-1970s episode of weakness in demand depos- Underground Economic Activity in the United States Using its has been intensively studied; see John P. Judd and John F. Monetary Statistics," Staff Study (Board of Governors of the Scadding, "The Search for a Stable Money Demand Func- Federal Reserve System, forthcoming), provides a more tion: A Survey of the Post-1973 Literature," Journal of detailed and more technical discussion of the issues examined Economic Literature, vol. 20 (September 1982), pp. 993in this article. 1023; Richard D. Porter, Thomas D. Simpson, and Eileen 5. The method was originally suggested by Phillip Cagan to Mauskopf, "Financial Innovations and the Monetary Aggreevaluate the upward movements in the currency ratio in gates," Brookings Papers on Economic Activity, 1:1979, pp. World War II; see Phillip Cagan, "The Demand for Currency 213-29; Thomas D. Simpson and Richard D. Porter, "Some Relative to the Total Money Supply," Journal of Political Issues Involving the Definition and Interpretation of the Economy, vol. 66 (August 1958), pp. 303-28. The method Monetary Aggregates," in Controlling the Monetary Aggrewas later adopted by Peter Gutmann, "Subterranean Econo- gates III, Federal Reserve Bank of Boston Conference Series my;" and it was subsequently modified by Edgar Feige, "A No. 22 (October 1980), pp. 161-234; and Jared Enzler, Lewis New Perspective on Macroeconomic Phenomena: The The- Johnson, and John Paulus, "Some Problems of Money Deory and Measurement of the Unobserved Sector in the mand," Brookings Papers on Economic Activity, 1:1976, pp. United States Economy—Causes, Consequences, and Impli- 261-80. cations," paper presented at the 1980 meetings of the Ameri- 16. One difference between the conventional models and can Economic Association. Tanzi's model is that the latter uses the old definition of M2, The initial estimates of underground GNP made by both which includes only M2 deposits held at commercial banks. Gutmann and Feige covered a period when the amount of 17. Even for the period before 1946, the specification can deposits in other checkable accounts such as ATS, NOW, be questioned because it does not take into account the and Super NOW accounts was small; those investigators thus introduction of deposit insurance, which altered the demand ignored these accounts in their work and used the ratio of for currency relative to M2. currency to demand deposits. In the last few years these new 18. When the estimation period for Tanzi's model is reaccounts have grown rapidly and have tended to substitute stricted to the postwar years 1946-80, the estimated coeffifor demand deposits rather than for currency; as a conse- cient for the tax variable has the wrong sign when T, the ratio quence, the ratio of currency to demand deposits has risen for of total tax payments to income, is used; that is, as taxes reasons totally unrelated to underground activity. Thus, in increase the ratio of currency to M2 falls. With TW, the this article, the currency-ratio estimates are based on the weighted average tax rate on interest income, the estimated ratio of currency to checkable deposits. As a reference point, tax coefficient does not come close to being statistically appendix table A.l presents estimates of underground activi- significant. See Porter and Bayer, "Evaluating Underground ty using the ratio of currency to demand deposits. Activity," appendix B-10. 6. Ibid. 19. In Tanzi's method, the benchmark assumption con- 7. Ibid, pp. 19-22. cerns the threshold level for taxes. Tanzi assumes that 8. Vito Tanzi, "The Underground Economy in the United underground activity develops as soon as any tax is placed on States: Annual Estimates, 1930-80," International Monetary output. However, this threshold tax effect could conceivably Fund, Staff Papers, vol. 30 (June 1983), pp. 283-305. be triggered at some value above zero. 9. See Porter and Bayer, "Evaluating Underground Activ- 20. Richard D. Porter and Edward K. Offenbacher, "Fiity," for a more detailed discussion of the estimates. nancial Innovations and Measurement of Monetary Aggre- 10. Feige, "How Big?" and "New Perspective." gates" (Federal Reserve Bank of St. Louis, forthcoming). 11. See Porter and Bayer, "Evaluating Underground Ac- 21. The particular proxy used for transaction costs is tivity," for a detailed discussion of the data used and steps described in Simpson and Porter, "Some Issues," table 4, involved in compiling the adjusted series on transactions. form number 1, p. 283. Also, for simplicity the scale variable 12. Appendix table A.2 presents currency-ratio and modi- is taken to be recorded GNP. fied currency-ratio velocity measures for the narrower defini- 22. The simulation results from the Porter-Offenbacher tion of the currency ratio, the ratio of currency to demand model are merely within-sample predictions and thus are not deposits. particularly strong evidence regarding the explanatory power 13. The charts represent dynamic simulations of the equa- of these equations. See Porter and Bayer, "Evaluating Untions starting in the third quarter of 1974 and extending derground Activity," for a more detailed discussion of the through the third quarter of 1983. (Appendix B of Porter and results. Bayer, "Evaluating Underground Activity," presents the 23. Ibid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A Monetary Perspective on Underground Economic Activity 189 24. Ibid. shown below, to be more efficient over a wider range of 25. At the end of December, vault cash was about 12 transaction sizes. percent of the total. There are no available data indicating 32. J. S. Cramer, "Currency by Denomination," Economtotal currency held by businesses. Robert D. Laurent has ics Letters, vol. 12 (1983), pp. 299-303. estimated that lost currency has never accounted for more 33. We are indebted to Gary Anderson of the Board staff than 4 percent of currency in circulation; see his "Currency for his technical assistance in compiling this table. in Circulation and the Real Value of Notes," Journal of 34. Formally, the size distribution of transactions is as- Money, Credit, and Banking, vol. 6 (May 1974), pp. 213-26. sumed to be uniform (all transactions are equally likely) up to 26. This estimate assumes $2.4 trillion in aggregate annual a given point and to follow Pareto distribution beyond that disposable income and 87.3 million households in the United point; that is, the distribution function for transactions was States. specified to be 27. Per household or per capita figures may be misleading I c if x 3 and may not indicate the median level of currency balances. For example, in 1975 currency holdings per capita were about $330. This figure may seem high for that time, but it does not c ^ ' " i f x s p, necessarily imply that a person chosen at random would hold such an amount; some would hold more and some less. A where p is the upper limit of the uniform portion of the relatively small fraction of the population might well hold a distribution and c = a/p(a +1). The parameter in the Pareto sizable portion of the total stock of currency. Such a distribu- distribution a was set equal to 1.65. This is the approximate tion would be consistent with the size distribution of demand value estimated for a variant of this model discussed below to deposit holdings, which is highly skewed: in 1975,0.6 percent explain per capita holdings of hundred-dollar bills. See Porter of demand deposit account holders held about half of all the and Bayer, "Evaluating Underground Activity," appendix demand deposits, according to estimates by the Federal C. Deposit Insurance Corporation. If the size distribution of 35. A comparison of table 3 and chart 6 for fifty-dollar currency were the same, it would imply that, excluding the bills, however, raises one problem with this explanation. The 0.6 percent of the population that held the largest amounts, table suggests that fifty-dollar bills should have surpassed currency holdings per capita in 1975 would be only $165, or twenty-dollar bills before they were overtaken by hundredhalf of overall per capita holdings. dollar bills, but the chart indicates that that event never 28. See Porter and Bayer, "Evaluating Underground Ac- occurred at all. If the analysis used to explain hundred-dollar tivity." bills in the text is basically correct, the reconciliation of the 29. Because the total economy has grown over this period, share data for fifty-dollar bills must require a different Pareto the relative constancy of real currency holdings per capita parameter estimate or different size distribution for transacimplies, other things equal, that the underground economy tions than that set out in note 34. An econometric investigahas shrunk relative to the aboveground economy. In terms of tion of these questions is currently being conducted by the Board's estimated currency equation, the increase in the members of the Board's staff. opportunity cost of holding currency and autonomous im- 36. Basically, the regression model discussed in the text is provements in managing currency apparently have offset the derived from the following assumptions: (1) the size distribuincreased level of real transactions, thereby leaving real tion of transactions is a Pareto distribution for transactions currency holdings per capita about unchanged. above a given size; (2) in response to inflation, the size 30. Denominations larger than $100—$500, $1,000, $5,000, distribution shifts in proportion to the change in the price and $10,000 bills—have not been printed since 1946. They level; and (3) hundred-dollar bills are used in large transachave not been issued since 1969. tions. See Porter and Bayer, "Evaluating Underground Ac- 31. The importance of fifty-dollar bills should increase tivity," especially appendix C, for further discussion of this somewhat also, but hundred-dollar bills appear, as will be model. Appendix tables appear on the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

190 Federal Reserve Bulletin • March 1984 A.l. Computed underground GNP using the ratio of A.2. Implied total income velocity of money using currency to demand deposits1 the ratio of currency to demand deposits to estimate underground activity1 Simple currency- Modified currency- Year ratio method ratio method Simple currency- Modified currency- Year or period ratio method ratio method Billions of dollars Implied velocity 1950 15.9 21.4 1955 14.7 15.5 1960 3.706 3.704 1960 17.3 17.0 1965 4.381 4.423 1965 31.7 38.6 1970 5.001 5.124 1970 62.6 88.6 1975 5.986 6.324 1975 152.2 248.3 1978 7.076 7.684 1978 280.2 489.9 1979 7.645 8.444 1979 359.6 649.8 1980 8.108 9.120 1980 445.2 829.2 1981 9.983 11.882 1981 683.5 1375.2 1982 10.620 13.111 1982 832.1 1748.4 Ratio to recorded GNP, percent Average annual rate of growth of implied velocity 1950 5.6 7.5 1955 3.7 3.9 1950-70. 3.1 3.2 1960 3.4 3.4 1975-81. 8.9 11.1 1965 4.6 5.6 1975-82. 8.5 11.0 1970 6.3 8.9 1975 9.8 16.0 1. Velocity is measured as the ratio of the sum of aboveground (or 1978 12.9 22.6 recorded) GNP and underground GNP to an Ml measure. 1979 14.9 26.9 1980 16.9 31.5 1981 23.1 46.6 1982 27.1 56.9 1. The estimates of underground GNP in this table are derived via the simple and modified currency-ratio methods, as described in the text, but use the ratio of currency to demand deposits as opposed to the ratio of currency to total checkable deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

191 Treasury and Federal Reserve Foreign Exchange Operations This 44th joint report reflects the Treasury- trading as the reporting period opened. The U.S. Federal Reserve policy of making available addi- monetary authorities and foreign central banks tional information on foreign exchange opera- intervened in coordinated operations during one tions from time to time. The Federal Reserve limited period, which helped restore order in the Bank of New York acts as agent for both the market. Treasury and the Federal Open Market Commit- Market participants soon began to question tee of the Federal Reserve System in the conduct whether the dollar could maintain the high levels of foreign exchange operations. reached in early August. New data pointed to a This report was prepared by Sam Y. Cross, considerable slowing of economic growth in the Manager of Foreign Operations for the System United States, and evidence suggested that up- Open Market Account and Executive Vice Presi- ward pressure on U.S. interest rates might be dent in charge of the Foreign Group of the dissipating. Ml growth had also decelerated, and Federal Reserve Bank of New York. It covers the the inflation rate remained low, leaving market period August 1983 through January 1984. Previ- participants with little reason to expect a firming ous reports have been published in the March in interest rates and some room to hope for an and September [October 1982] BULLETINS of easing. Moreover, private credit demands were each year beginning with September 1962. appearing less strong than expected just months before, and estimates of the government's quar- During the period from August 1983 through January 1984, the dollar rose strongly on balance 1. Federal Reserve reciprocal currency arrangements against the European currencies, but was little changed against the Japanese yen. As the period Millions of dollars began, the dollar was moving sharply higher and Amount of Amount of facility, facility, reached a 9Vi year high against the German mark Institution Jan. 31, Jan. 31, in mid-August. The dollar then declined gradual- 1983 1984 ly through early October, before it gained re- Austrian National Bank 250 250 National Bank of Belgium 1,000 1,000 newed strength and surpassed its earlier highs, Bank of Canada 2,000 2,000 ending the period 5 to 9 percent higher on National Bank of Denmark 250 250 Bank of England 3,000 3,000 balance against the European currencies. Bank of France 2,000 2,000 German Federal Bank 6,000 6,000 At the beginning of August the U.S. economy Bank of Italy 3,000 3,000 was recovering more vigorously and inflation Bank of Japan 5,000 5,000 was declining more rapidly than had been ex- Bank of Mexico Regular facility 700 700 pected by many observers. At the same time, the Special facility 325 0) U.S. authorities were perceived as willing to Netherlands Bank 500 500 Bank of Norway 250 250 allow the demand pressures to be reflected in Bank of Sweden 300 300 Swiss National Bank 4,000 4,000 higher interest rates. In many other industrial Bank for International countries, by contrast, economic recovery was Settlements more modest; unemployment was near peak lev- Swiss francs/dollars 600 600 Other authorized European els or declining only slowly; and the monetary currencies/dollars 1,250 1,250 authorities were perceived as reluctant to tighten Total 30,425 30,100 monetary policies. Under these circumstances, the dollar was quickly bid higher in unsettled 1. Facility, which became effective August 30, 1982, expired on August 23, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

192 Federal Reserve Bulletin • March 1984 terly financing needs were revised downward. tions for the 1983 current account deficit of These developments triggered a rally in U.S. roughly $40 billion. credit markets, with short-term interest rates The dollar also benefited from "safe haven" dropping about 1 percentage point by early Octo- considerations prompted by events that heightber. They also were seen as increasing the scope ened international tensions, such as intensified for monetary authorities abroad to take a more fighting in Lebanon and escalation of threats in accommodative policy stance, without risking the Iran-Iraq conflict. Episodes of increased the inflationary impact of a depreciating curren- political and financial uncertainty in Europe also cy. Under these circumstances the dollar de- led to bidding for dollars. clined through October 7 about Axh percent on a After mid-December, U.S. interest rates eased trade-weighted basis and about 6V2 percent off, but only slightly. The dollar dipped briefly against the German mark from its August peaks. toward the year-end, but then resumed its climb. In early October, however, it became clear It hit a ten-year high of DM 2.8505 against the that U.S. growth had remained strong in the third mark on January 10 and set records against most quarter. Consequently, projections of the gain in other European currencies before again easing gross national product for the full year—by both back somewhat by the close of the period. the administration and market participants— Over the six-month period, the U.S. authoriwere revised upward as much as a percentage ties intervened in the exchange markets on five point from those made as recently as July. The occasions to calm disorderly markets. Two of evidence of robust growth quickly stopped the these occasions were described in previous redecline in U.S. interest rates and again overshad- ports. The first of these involved operations on owed the more modest economic recoveries of four business days between July 29 and August several European countries. The U.S. expansion 5, which were coordinated with foreign monetary once again became more evident, encouraging authorities. The U.S. authorities purchased expectations of rising private credit demand. At $182.6 million equivalent of German marks and the same time, market concern grew over the $71.5 million equivalent of Japanese yen during lack of action to reduce current and prospective that period. The second occurred on October 31 fiscal deficits and, by mid-December, short-term and November 1 when the U.S. authorities eninterest rates had moved back up near the levels tered the market to purchase a total of $29.6 of early August. million equivalent of Japanese yen. The remain- In addition, optimism spread that the U.S. ing three instances, one in December and two in economy might be on the threshold of a lengthy early January, involved purchases of German period of strong but noninflationary expansion, marks and totaled $193.4 million equivalent. All with high productivity growth. The unemploy- intervention during the six-month interval was split evenly between the Federal Reserve and the ment rate plummeted. Many attributed aggres- Treasury. sive business hiring programs to growing confidence that earlier efforts to deregulate the In other operations during the six-month perieconomy, improve labor market flexibility, and od, Mexico fully repaid the remaining portion of adjust the corporate tax structure to spur invest- its special combined credit facility. As noted in a ment were all beginning to bear fruit. In this previous report, Mexico prepaid on August 15 environment the dollar developed upward mo- outstanding swaps of $100.8 million to the Treamentum in the exchanges, climbing with each sury and $54.3 million to the Federal Reserve. Drawings of $395.3 million and $214.8 million new economic statistic that suggested stronger were repaid to the Treasury and the Federal expansion. There were also reports of substantial Reserve respectively upon maturity on August foreign interest in U.S. investments, based on 23, and the facility then expired. This facility had expectations of improving corporate profits and originally consisted of $600 million from the yields on equity investments, as well as the Treasury and $325 million from the Federal Recontinued attraction of comparatively high yields serve. It was provided in cooperation with other on fixed-income securities. As a result, the excentral banks, which together with the United change markets showed little reaction to projec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 193 2. Drawings and repayments by the Bank of Mexico under special combined credit facility1 Millions of dollars, drawings or repayments (-) Outstanding Outstanding DDrraawwiinnggss Jan. 1, 1983:1 1983:2 1983:3 Jan. 31, 1983 1984 Federal Reserve special facility for $325 million 257.3 67.8 -56.0 -269.0 (2) U.S. Treasury special facility for $600 million 477.8 122.3 -104.0 -496.0 (2) Total 735.0 190.0 -160.0 -765.0 (2) 1. Data are on a value-date basis. Because of rounding, figures may 2. Facility, which became effective August 30, 1982, was fully not add to totals. repaid and expired on August 23, 1983. States, extended credit totaling $1.85 billion to gory of transaction loss. As of January 31, cumuthe Bank of Mexico. lative unrealized valuation, or bookkeeping, During 1982 and 1983, the Treasury participat- losses on outstanding foreign currency balances ed, along with authorities from other nations, in were $979.2 million for the Federal Reserve and providing liquidity support to the Bank for Inter- $673.0 million for the ESF. Both the realized national Settlements for credit facilities the BIS ESF loss and the unrealized valuation losses provided to the Central Bank of Brazil and to the reflected the fact that the dollar had strengthened National Bank of Yugoslavia. This support took since the foreign currency balances were acthe form of the Treasury, through the Exchange quired. Stabilization Fund (ESF), agreeing to be substi- The Treasury and the Federal Reserve invest tuted for the BIS as a creditor in the event of foreign currency balances acquired in the market delayed repayments. In November, both Brazil as a result of their foreign exchange operations in and Yugoslavia completed all repayments under a variety of instruments that yield market-related these facilities, and all contingent Treasury com- rates of return and that have a high degree of mitments expired following these repayments to quality and liquidity. Under the authority providthe BIS. ed by the Monetary Control Act of 1980, the On December 23, the Treasury entered into a Federal Reserve has invested some of its foreign swap agreement of $50 million with the Central currency resources in securities issued by for- Bank of Jamaica in support of Jamaica's negotia- eign governments. As of January 31, the Federal tions on an economic adjustment program with Reserve held the equivalent of $1,545.2 million in the International Monetary Fund (IMF). On De- these securities, while the Treasury's holdings cember 29, Jamaica drew $10 million on this were equivalent to $1,978.3 million. facility. Also on December 29, the ESF sold $345.5 3. Net profits or losses (-) million of Japanese yen and $345.5 million equivon U.S. Treasury and Federal Reserve alent of German marks to the Treasury general current foreign exchange operations1 account for the purpose of financing a portion of Millions of dollars the increase in the U.S. quota subscription to the IMF. U.S. Treasury Federal In the period from August through January, Period Reserve Exchange General neither the Federal Reserve nor the Treasury Stabilization account Fund general account realized any profits or losses 1983:1 0 .5 38.3 from exchange transactions. As a result of the 1983:2 0 17.0 58.1 sale of currencies to fund the subscription pay- 1983:3 0 0 70.1 1983:4 0 -204.8 0 ment to the IMF, the ESF recorded a transaction 0 0 0 Valuation profits and losses on loss of $204.8 million, reflecting the shift of a outstanding assets and valuation loss, which was previously recorded in liabilities as of Jan. 31, 1984 979.2 -673.0 0 the published ESF balance sheet, into the cate- 1. Data are on a value-date basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

194 Federal Reserve Bulletin • March 1984 GERMAN MARK highest level during the period under review. The German currency also strengthened within the Early in August, the German mark fell to a 9XA- EMS, rising steadily from the bottom to the top year low of DM 2.7440 against the dollar, then of the band by early October. The Bundesbank reversed course to recover about 6V2 percent by intervened as part of coordinated operations with early October. This turnaround coincided with a the United States in early August, and Germaperceived improvement in German economic ny's foreign exchange reserves declined $1.1 growth prospects, a firming of interest rates, and billion by the end of September to $37.1 billion. a subsiding of the large outflows of long-term At that point the mark turned lower against the private capital that had persisted since 1980. dollar, in a trend that continued through the Although its recovery against the dollar proved remainder of the period under review. The mark to be temporary, in August the mark began a began to decline as events in the United States gradual and sustained rise against most continen- challenged the view that the U.S. expansion was tal currencies, as Germany's low inflation rate weakening substantially and that dollar interest and current account surplus continued to com- rates would decline. pare well with the performances of its main But, at the same time, negative sentiment trading partners. began to reemerge toward the German economic By mid-August, German business confidence and political situation. It became clear that the was reviving as prospects for economic expan- momentum the economy developed in the secsion improved. Increased construction, inven- ond quarter had not been maintained. Thirdtory, and investment spending had spurred eco- quarter industrial production stagnated, presagnomic activity, and later reports confirmed the ing the modest growth of GNP later published; strong GNP growth in the second quarter. The and progress was slow in reducing unemploylong decline in employment came to a halt, and ment. Demand for German exports did pick up, export orders began to increase despite the reval- but rising imports kept the external sector from uation of the mark within the EMS earlier in the providing a net stimulus. The German current year and weak growth in Europe and most devel- account in fact moved into a small deficit in the oping countries. third quarter, and projections of the surplus for As the economic outlook brightened, market 1983 were revised downward. participants speculated that, to avoid renewed Market participants concluded that, with the mark depreciation and the consequent inflation- German recovery appearing to lose strength, the ary pressures, the Bundesbank might raise inter- Bundesbank would not strongly resist a renewed est rates in response to increases that had recent- decline in the mark by raising German interest ly taken place abroad. In addition, money supply rates, even if rates abroad were to increase. The growth remained above the Bundesbank's target government continued to emphasize its goal of range of 4 to 7 percent. Under these circum- reducing Germany's fiscal deficit, and the burstances, market interest rates in Germany moved den of economic stimulus was thought to rest on back up over the summer. Then, effective Sep- monetary policy. Central bank money growth tember 9, the Bundesbank raised its Lombard was now decelerating toward its target range, rate V2 percentage point to 5V2 percent, citing the and the earlier pickup in domestic prices had not need to reduce central bank money growth, to continued. Market participants also noted that strengthen confidence in the mark, and to limit official spokesmen and business leaders pointed domestic inflationary pressures. Following this to the potential benefits of mark depreciation for move, money market rates did not rise further, stimulating exports. interest rate differentials vis-a-vis dollar assets Consequently, the decline of the mark against narrowed as U.S. rates eased back, and Germa- the dollar, which started early in October, conny's bond market joined the rally then taking tinued through mid-January. International politiplace in bond markets abroad. cal tensions and domestic controversies also had Against this background, portfolio capital an adverse effect on the mark during this period. shifted back into Germany, and the mark rose At times, market participants sold marks in reagainst the dollar to DM 2.5620 on October 7, its sponse to fears that the escalation of military Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 195 conflicts in the Middle East and elsewhere might JAPANESE YEN stimulate renewed "safe haven" flows into the United States. The mark also weakened against Over the month of August the yen declined about the pound and the yen, but eased only slightly 2 percent against the dollar to a low of ¥247.50 in against other continental currencies. By January early September. The yen fell quite abruptly at 10, the mark had fallen to DM 2.8505 against the first as the dollar climbed steeply against all dollar, 11 percent below its October high, and currencies, but the decline moderated thereafter. had declined 10 percent against the Japanese yen The yen's downward move through August in over the same period. part reflected market concern that the Japanese As the mark fell, the Bundesbank intervened economy had not yet emerged from a lengthy regularly at the daily fixing in Frankfurt. It also period of slow growth, leaving the outlook for operated forcefully in the market on several days higher profits and asset yields in Japan relatively in an effort to contain rapid declines of the mark limited. Many doubted that yen interest rates against the dollar. On three occasions during would be allowed to match any U.S. rate in- December and January, the U.S. authorities in- creases because a rise in interest rates in Japan tervened to purchase marks when market condi- would dampen the still meager economic expantions became disorderly, operating in each case sion. In this environment, Japan's long-term for the U.S. Treasury and the Federal Reserve capital account deficit widened and in fact exequally. In total, the Trading Desk purchased a ceeded the current account surplus in August. total of $193.4 million equivalent of marks. The decline in the yen was resisted by Bank of Japan intervention during August, and the Japa- The mark fluctuated widely against the dollar nese authorities joined with the United States in during the remainder of January, recovering the coordinated intervention operation around somewhat to close the period at DM 2.8110. the beginning of the month. During January, both the dollar and yen had reached levels against the mark, which some After the beginning of September the yen market participants doubted were sustainable, turned higher against the dollar, benefiting from and data indicated some improvement in German evidence that the Japanese economy had begun economic performance as compared with the to expand more vigorously. It was reported that United States. Meanwhile, Germany's stock GNP had grown at a 3.6 percent rate in the market strengthened, outperforming the U.S. second quarter (later revised to 4.5 percent) and market by a wide margin during January. Under that industrial production and the index of leadthese circumstances, market participants began ing indicators had risen strongly in August. Inflato conjecture that international investors would tion remained very low, making it unlikely that increase the mark-denominated portion of their the authorities would need to temper any accelportfolios to restore a more traditional currency eration of Japan's economy on these grounds. distribution. On several occasions in January, Japan's large current account surplus contribut- German officials publicly expressed the view that ed to better market sentiment for the currency, the dollar was becoming increasingly vulnerable despite the persistence of sizable long-term capito a decline. tal outflows. Against this background, the yen During the six-month period, the mark de- strengthened and quickly outpaced other currenclined 6 percent on balance against the dollar. It cies, which had begun to rise against the dollar dropped 9Vi percent against the Japanese yen several weeks earlier. Over the five weeks and eased marginally against the Swiss franc. through October 7 the yen appreciated more than But the mark held on to its early gains within the 7 percent against the dollar to ¥230.10, and EMS to close modestly higher against other edged up against the European currencies as member currencies. In effective terms, the mark well. appreciated about 1 percent over the six-month During the remainder of the reporting period, period under review. Germany's foreign ex- the yen traded narrowly around the ¥234 level change reserves posted little net change after against the dollar, while it strengthened to record September, closing the six-month period down levels against most European currencies. Exon balance $1.1 billion at $37.1 billion. change market participants reassessed the out- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

196 Federal Reserve Bulletin • March 1984 look for the yen, especially against the mark and solved the Diet and called for elections to be held other continental currencies, in the view that the three weeks later. Elections had been anticipated yen had considerably greater scope to appreciate by the exchange markets, but few saw much against those currencies than did the dollar, chance of major changes in economic policy as a which had been in an uptrend since mid-1980. result. In the event, the governing Liberal Demo- The more robust performance of Japan's econ- cratic party lost more seats than expected, omy contrasted with the rather slow growth in threatening its parliamentary majority and trig- Europe and was a major factor supporting the gering steep but temporary declines in the yen yen during this period. Japan's economy was and the Tokyo stock and bond markets. Both the seen as relatively innovative and dynamic, it had yen and Japanese stock and bond prices quickly continued to expand—albeit slowly—during the rebounded when it became clear that Prime recent worldwide recession, and profits were Minister Nakasone would be able to retain conforecast to rise strongly. The Japanese inflation trol of the Diet and to sustain the basic thrust of rate remained below even the best European Japan's economic policies. price performance, and the country's higher sav- From mid-December into January, optimism ings and investment rates promised continued about the Japanese economy gathered more mohigher growth in the future. mentum, reflected in both a rising yen and soar- Even though the economic outlook in Japan ing stock prices in the Tokyo market. It was had improved during the autumn, expectations reported that Japan's third-quarter real GNP grew that there would be further government growth had climbed to 6.2 percent, industrial action to stimulate the economy. Such stimulus production had risen sharply in November, and was expected to be aimed at raising imports to projections of 20 percent increases in corporate ameliorate the increasing worldwide trade fric- profits for 1984 were published. Meanwhile, Jations, especially before a visit to Japan by Presi- pan's monthly trade surpluses remained at neardent Reagan scheduled for November. Then on record levels, and the consumer price index fell October 21 the government announced a six- in December to just 1.8 percent above its yearpoint program to boost economic activity, im- earlier level. In this context, the yen climbed to a ports, and capital inflows. The package was record ¥81.94 against the German mark on Januaccompanied, as expected, by a cut of Vi per- ary 10, after which some profit taking on cross centage point in the discount rate to 5 percent. positions against the European currencies The Bank of Japan announced its readiness to brought the yen back slightly from its highs. counter any consequent downward pressure on At the same time, the yen remained nearly the yen either by raising short-term interest rates unchanged against the dollar throughout January or intervening in the exchanges. Although the despite the dollar's surge against the European stimulative impact of these actions was seen as currencies. At the close of the six-month period relatively modest, they served to reinforce opti- the yen, at ¥234.60, was V/2 percent higher mism about the durability of Japan's expansion. against the dollar and up 9XA percent against the Late in October the yen briefly moved lower German mark. Over the same period, Japan's against the dollar following a military flare-up in foreign exchange reserves remained virtually unthe Middle East, and the Bank of Japan came changed and stood at $20.7 billion at the end of into the market to support the currency. The January. U.S. authorities joined with the Japanese central In early November, at the conclusion of Presibank in intervention, purchasing a total of $29.6 dent Reagan's November 9 visit to Tokyo, Treamillion equivalent of yen for the Federal Reserve sury Secretary Regan and Finance Minister Taand Treasury accounts on October 31 and No- keshita issued a Joint Press Announcement that vember 1. contained a number of measures designed to During November and much of December the liberalize further Japan's capital markets, interyen steadied against the strongly rising dollar and nationalize the yen, and allow the yen to more continued to set records against most European fully reflect its underlying strength. The ancurrencies. The yen remained firm even when nouncement also reported that the Japanese Min- Prime Minister Nakasone on November 28 dis- istry of Finance and the U.S. Treasury Depart- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 197 ment would establish a joint ad hoc group of the German and Dutch authorities in raising financial authorities on yen-dollar exchange rate official lending rates, and the gap between Swiss issues. This group, cochaired by Secretary Re- and German interest rates widened about IV2 gan and Finance Minister Takeshita, would mon- percentage points by early October to almost 2 itor progress in implementing the measures and percentage points at the three-month maturity. develop and implement additional steps toward In these conditions, the Swiss franc lagged bethe agreed objectives of liberalizing Japan's capi- hind the German mark's sharp recovery against tal market and internationalizing the yen. the dollar in August and then stabilized just above the SF 0.81 level against the mark for the next two months. Swiss FRANC In early November the Swiss franc began to appreciate gradually against the German mark The Swiss franc was in a rising trend against the and other European currencies even as it fell otlpr European currencies as the period opened. against the dollar, gaining slightly on a trade- In fact, by mid-August, the franc had climbed weighted basis. The franc benefited in part from about IV2 percent against the German mark since Switzerland's political and economic stability. March to around SF 0.80. The franc benefited An improvement in the Swiss economy, although from a narrowing of the usual interest disadvan- modest, supported the franc through this period. tage of Swiss-franc assets, as Swiss interest rates Growth resumed in the third quarter of 1983 and rose on market expectations that the Swiss au- was forecast to reach over 1 percent in 1984. thorities would act to reverse the overshooting of Swiss inflation continued to subside, falling to a the monetary growth target earlier in 1983. Other twelve-month rate of 1.4 percent in October, factors also lent some support to the franc. The below the rate of Switzerland's main trading inflation rate had declined further to the lowest partners. At the same time, interest in investlevel in 4V2 years, unemployment remained low ments denominated in Swiss francs remained compared with that in most countries, and the strong, allowing the continued large offerings by current account surplus continued to run at an foreign borrowers in the Swiss market to be annual rate of about $3.5 billion. easily absorbed without placing noticeable pressure on franc interest rates or the exchange rate. But even as the franc rose against the mark in early August, market participants began to ques During the same period, Swiss fiscal and montion the franc's scope for further appreciation. etary policies appeared to market participants to Approach of the franc toward the franc-mark be shifting more toward restriction. The Swiss rate of SF 0.80 had in the late 1970s prompted government proposed a budget for 1984 aimed at action by the authorities to protect the competi- further reducing federal financing requirements tiveness of Swiss industry within its main mar- to 0.6 percent of GNP, while the monetary kets in Europe. Indeed, Swiss officials were authorities were seen as placing more emphasis beginning publicly to voice concern over the on price stability than on tempering the franc's franc's appreciation relative to other European rise against the mark. Market participants took currencies. In early August, the Swiss National special note that the central bank did not inter- Bank announced that it had intervened in the vene to cushion the franc's rise against the foreign exchange market, acting in concert with German mark as the cross rate again approached several other central banks and purchasing Ger- the SF 0.80 level in late November. Senior man marks against both dollars and Swiss francs. central bank officials spoke publicly of the need Central bank officials also stated that they would to give priority to the fight against inflation and not offset the resulting addition to liquidity in the announced that the target for central bank money Swiss banking system. growth would be kept at 3 percent in 1984. This Also during August, market participants came growth rate, if attained, would be V2 percentage to the view that Swiss monetary policy was being point less than the growth actually achieved eased slightly, as Swiss interest rates declined during 1983. along with those in the United States. In early Thus, while dropping to a low against the September the Swiss National Bank did not join dollar of SF 2.2655 on January 10, the Swiss Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

198 Federal Reserve Bulletin • March 1984 franc reached its highest level against the Ger- participants began to suspect that the governman mark of SF 0.79. The franc ended January at ment might lower interest rates to stimulate the SF 2.2455 against the dollar, down nearly 5 economy and to lower the exchange rate. Subpercent over the six-month period, while in stantial progress had already been made in reterms of the German mark the Swiss currency gaining Britain's international competitiveness— rose 1 lA percent on balance to close at SF 0.7988. the inflation rate had been cut in half in the last Switzerland's foreign exchange reserves were year, sterling had fallen almost 20 percent in little changed from six months earlier at $11.7 effective terms from its peak in early 1981, and billion, with fluctuations within the period main- labor productivity had begun to improve. But ly reflecting foreign currency swap operations to most observers felt that production costs in the adjust liquidity in the Swiss banking system. United Kingdom were still relatively high, especially for manufactured goods and especially in comparison with the Continent. Concern about STERLING competitiveness was underlined by release of data showing that output growth was sluggish, Sterling was seldom the focus of attention in the much of the growth of consumption was being exchanges and was virtually unchanged on bal- met by imports, and exports remained depressed ance through mid-September. Thereafter, it de- even though the economies of some of Britain's clined gradually to end the six-month period 8 major trading partners on the Continent had percent lower against the dollar and down by begun to expand somewhat more vigorously. modest amounts against most other currencies. On October 3 the Bank of England cut its The primary influence on the exchange rate money market intervention rate Vi percentage during the August-January interval was develop- point. Sterling fell sharply in response, quickly ments in world oil markets. Expectations of declining nearly 3 percent against the mark to lower British interest rates gave rise to some about DM 3.85 and below $1.48 against the pressure on sterling in late September and early dollar. The Bank of England exchange rate index October, but this factor then became relatively fell to 82.4. Sterling then recovered somewhat unimportant. and fluctuated narrowly during the balance of As the dollar rose strongly through mid-Au- October. gust, sterling held up better than most curren- Oil market developments, which had been a cies. British money market rates declined and consistent support to sterling through late sumwidened the dollar's interest rate advantage. But mer, had a mixed influence on the currency inflation in the United Kingdom had also between October and January. Sterling benefited dropped below 5 percent by early 1983, even as when the conflicts in Lebanon and the Persian Britain's economy was in its third year of slow Gulf flared up, raising the specter of restricted oil recovery. In addition, sterling was supported by supplies and higher prices. But, at other times, firm world oil prices as the earlier glut in world evidence of ample supplies and an easing of spot oil supplies dissipated and was replaced by con- oil prices in the Rotterdam market undermined cern over supply shortages should the war be- sterling. In late December, one element of uncertween Iran and Iraq disrupt shipments from the tainty was eliminated when the British National Persian Gulf. The shift of view in the oil market Oil Company announced that it would hold improved prospects for Britain's current account prices at current levels through the first quarter and budget through higher government tax and of 1984. royalty income from North Sea oil production. Monthly U.K. trade data had some influence These factors continued to provide support for on exchange rates from time to time, but without the currency through late September, and ster- any significant effect on balance. Though the ling generally remained close to $1.50 against the figures were erratic, the current account redollar and 85 on the Bank of England's trade- mained in surplus and appeared to improve weighted index. somewhat at the year-end. But, in late September, new data showed some From mid-December to the end of January, deceleration of monetary growth and market sterling declined slightly in effective terms and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 199 traded steadily against the German mark, but its reduced 1983 target of 9 percent, helping to fluctuated widely against the dollar. Against the keep interest rates firm and bolster the franc. dollar, sterling closed the six-month interval But, while franc interest rates held steady, Gerdown 8 percent at $1.4035. On balance, sterling many raised its Lombard rate in September, declined 2 percent against the German mark and narrowing interest rate differentials favorable to about AVA percent on the effective index of the the franc. Moreover, the French inflation rate Bank of England. Over the six-month period, had not yet begun to decline, and a large inflation Britain's foreign exchange reserves declined al- differential persisted between France and Germost $500 million to $8.5 billion. many. Thus, even though the franc remained near the top of the EMS, there was at times considerable selling pressure on the franc against FRENCH FRANC the mark, which by early October had risen to join the franc near the top of the EMS. As the period opened, market participants were From late October through December, more awaiting evidence that the French government's evidence accumulated that progress was being austerity program, announced after the EMS made toward some of the main goals of the realignment in March, had begun to reduce infla- austerity program. The French external accounts tion and to narrow the current account deficit. improved strikingly. The first monthly trade sur- The program sought a 2 percent reduction of plus since 1979 was registered in September, domestic demand through contractionary fiscal followed by news of a current account surplus policy and more restrictive monetary growth for the third quarter as a whole (later revised to a targets and was expected to reduce economic small deficit). Shortly thereafter, the government growth nearly to zero for 1983. While it was clear partially relaxed the strict foreign exchange conat midsummer that the economy had slowed, trols imposed earlier in the year and announced there was little apparent progress toward the plans to reduce substantially its foreign borrowprogram's main goals of cutting inflation sub- ing. stantially and achieving balance in the current Also, the government reaffirmed its commitaccount. Without evidence of such progress, ment to a policy of reducing inflation through traders questioned the sustainability of the 1984. The government budget for 1984 limited franc's position near the top of the EMS, and the increase in spending to 6.3 percent in nominal some expected exchange rate pressure to emerge terms, or about zero growth after adjustment for as soon as early fall. Benefiting from reflows inflation. Also, the authorities called for average after the March realignment as well as an ECU 4 wage increases of no more than 6 percent in billion loan from the European Community, 1984. The growth target for M-2 was lowered to France's foreign currency reserves stood at 5.5 to 6.5 percent, compared with a 9 percent $18.5 billion at the beginning of the period. target for 1983. The reaffirmation of the govern- In early August the franc remained firm at the ment's commitment to curb inflation, together top of the EMS, but declined sharply against the with the continued improvement of France's strongly rising dollar. The franc reached a record trade performance, tended to reinforce confilow of FF 8.2450 versus the dollar on August 11, dence in the franc. Consequently, there was little and during that period the Bank of France inter- exchange market reaction to labor unrest in vened to support the franc as the dollar rose December and January, which underscored the across the board. Thereafter the franc, along difficulties in achieving the government's stabiliwith other EMS currencies, turned higher zation program. against the dollar in a trend that continued In this environment the franc traded firmly at through early October, and the franc held firm at the top of the narrow EMS band through the end the top of the EMS through early autumn. One of January. Franc interest rates remained relareason for this strength was that the restrictive tively high, attracting nonresident demand for fiscal policy had by then slowed the growth of franc investments. The franc closed the period at income and thereby reduced imports. Also, on FF 3.0591 against the German mark, slightly the monetary side, growth of M-2 had slowed to above its midpoint. The franc, along with its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

200 Federal Reserve Bulletin • March 1984 partner currencies, fell back to a record low of and that Italy's prospects for expanding exports FF 8.7020 against the dollar in mid-January, but might therefore be limited even if economic subsequently recovered somewhat to end the growth in other European economies picked up period IVi percent lower at FF 8.5990. France's sharply. foreign currency reserves fell about $700 million Against the dollar, the lira, along with other over the six-month period and stood at $17.7 EMS currencies, fell sharply in early August, billion at the end of January. and the Bank of Italy intervened with modest Throughout the period, French entities contin- dollar sales. Subsequently, the lira lagged someued to borrow abroad, although the government what behind the other EMS currencies when did not arrange any new large-scale foreign cred- they turned higher against the dollar in a rise that its. In January, Finance Minister Delors stated lasted through mid-October. During those that France's external debt had reached $53 weeks, several brief spates of speculation and billion at the end of 1983, compared with $44 the usual tapering-off of summer tourist inflows billion at the end of 1982. brought the lira slightly lower within the EMS. The Bank of Italy intervened on several of these occasions to resist the lira's decline. By mid ITALIAN LIRA October the lira's margin above the narrow EMS band had eased back about 1 percent, and the lira The lira traded in the upper portion of its wide was little changed on balance against the general- EMS band from the beginning of August to mid- ly lower dollar. Against the German mark the lira October, although several brief flurries of pres- had declined about 3 percent. sure during this period brought the lira somewhat After mid-October, pressure on the lira subsidlower in the EMS. ed and the currency held its position comfortably Supported by high Italian interest rates, the above the narrow band through the end of the lira had remained well above the top of the period under review. The Italian authorities took narrow EMS band since the March realignment. advantage of the lira's stability during this period Money market interest rates of 17 percent and to relax foreign exchange controls partially. In higher reflected the Bank of Italy's continuing addition, the Bank of Italy was able to build up efforts to narrow the gap between inflation rates foreign exchange reserves, although there are in Italy and elsewhere in Europe. By August, typically reserve outflows in late fall. By the end some progress on inflation was becoming evident of December, foreign currency reserves had risas a result of the restrictive monetary policy, the en $854 million from the end of September to decline in economic activity, and the January $18.5 billion. The relatively strong position of the modification of the scala mobile (wage indexa- lira reflected continued firm interest rates and tion system). As the reporting period opened, the some signs of improvement in inflation, economlira was also drawing support from a narrowing ic growth, and the domestic policy situation. of Italy's trade deficit as declining domestic The Bank of Italy maintained a restrictive demand depressed imports. policy stance through the fall and winter, while During August and September, however, there the government budget deficit continued to grow were several episodes of pressure on the lira and the unemployment rate continued to estabwithin the EMS, in part reflecting market partici- lish postwar records. On October 23, Bank of pants' concern that the apparent improvements Italy Governor Ciampi warned that "without in Italy's trade and price performance might effective curbs on pay and public borrowing prove temporary or insufficient to match the there could be no relaxation of the highly restricprogress in other European economies. In partic- tive monetary policy" and called for a compreular, deceleration in inflation was seen as threat- hensive incomes policy to bring inflation down to ened by the Italian government's continued diffi- the government's 1984 target of 10 percent. Itaculty in containing the fiscal deficit. In fact, ly's high money market rates declined somewhat many industrialists argued that the lira's devalua- during this period but considerably less than did tions within the EMS in recent years had not the inflation rate. fully compensated for Italy's higher inflation rate The progress on inflation that became evident Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 201 over the fall and winter was the most significant EUROPEAN MONETARY SYSTEM for Italy in years. Consumer price increases fell from a year-on-year rate of 16.3 percent in the At the beginning of August the currencies within second quarter to 13.3 percent by October and the EMS were trading in a pattern that had hit 12.5 percent by January. Wholesale price changed little since the last realignment on increases fell below 10 percent in August for the March 21, 1983. The Irish pound and the French first time in five years and then stayed below that franc were at or near the top of the narrow band, level through the remainder of the period. and the Italian lira remained more than 3 percent More broadly, signs emerged that the econo- above the top, within the wide bands allowed for my had begun to grow again in the third quarter, that currency. The German mark remained at the and in fact it turned out that real GDP had risen band's lower limit and had been joined there by at a 3.6 percent rate. The external accounts the Belgian franc, while the Netherlands guilder continued to improve, leaving the 1983 trade and the Danish krone had moved to the middle of deficit about a third smaller than that of 1982. In the joint float. November the trade account actually registered In mid-August, as the dollar fell from its peaks, a surplus, the first since October 1979. The the German mark began to rise steadily within current account for the first eight months of 1983 the EMS. The Netherlands guilder and the Danalso turned around—to a surplus of Lit 1.0 ish krone also moved higher, leaving the Belgian trillion as compared with the Lit 5.4 trillion franc more isolated at its EMS floor. By early deficit in the same period a year earlier. At the October the currencies of Germany, France, the same time, Prime Minister Craxi's government Netherlands, Denmark, and Ireland were all achieved modest success in getting action on its clustered near the top of the narrow EMS band in budget initiatives. The new coalition government a configuration that was generally maintained that took power in August had proposed a strict throughout the rest of the period. The Belgian austerity budget aimed at reducing the huge franc required only modest support to keep it fiscal deficit and further reducing inflation and, within its lower limit. Against the dollar, the in fact, obtained Parliamentary approval for the EMS currencies declined 6 to 9 percent on general outlines of its program by the end of balance over the August-January period despite December—only the third Italian budget of the sizable net intervention sales of dollars by the postwar period to be passed on schedule. member central banks. At the close of the peri- While progress was made on several fronts, it od, the EMS bilateral limits adopted in March remained clear that Italy needed significant addi- 1983 had lasted longer than any other since those tional progress before its economic performance agreed upon in November 1979. would be in line with those of its neighbors. The stability in the EMS exchange rate rela- Economic growth had revived, but unemploy- tionships reflected a growing convergence of ment in Italy continued to rise. And, while Italy's economic performances among member couninflation decelerated over the period, by January tries at a time when the dollar was consistently consumer price inflation was still 10 percentage strong against all EMS currencies and thus not points above that in Germany and AVI percentage straining the cross rates. The convergence, most points above that in France. In wholesale prices, apparent in trade and price developments, was in however, the gap narrowed to 7 percentage part a consequence of the austerity programs points versus Germany, and for France the gap instituted by several member countries during reversed sign; French wholesale price inflation 1982 and the spring of 1983. The March realignexceeded that in Italy by 6 percentage points in ment also contributed to a narrowing of bilateral the year to December. trade gaps between member countries. While holding steady against the EMS curren- The trade balance improvement was most dracies, the lira continued to fall to record lows matic in the case of France, but a combination of against the dollar, reaching Lit 1,722.75 on Janu- weak domestic demand and gains in competitiveary 12. The lira then recovered somewhat to ness also narrowed the deficits or generated close the period at Lit 1,713, down almost 9 surpluses on the current accounts of Belgium, percent on balance against the dollar. Denmark, Ireland, and Italy. In Germany and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 Federal Reserve Bulletin • March 1984 Netherlands—the countries whose currencies The Canadian currency was buoyed by the were revalued the most in the last realignment— remarkable improvement in Canada's economic the external surpluses were little changed. There performance. The country's severe 1981-82 rewas a similar, although less pronounced, conver- cession had given way to an exceptionally strong gence of inflation rates as higher inflation coun- rebound, spurred by vigorous domestic demand tries experienced some moderation in price in- and by growth in the United States. While Canacreases while others saw their inflation rates dian imports picked up in response to the boom stabilize at low levels. at home, strong demand from the United States Success in trimming fiscal deficits was less helped push Canada's trade surplus to nearvisible during the period, as increased debt ser- record levels, keeping the current account in a vice costs and rising unemployment kept most surplus, unusual for Canada, through the first countries' fiscal gaps from narrowing significant- half of 1983. Canadian inflation, which had rely despite serious budget cutting efforts. Domes- mained stubbornly high, plunged from doubletic opposition to tough austerity measures in digit levels in late 1982 to 5.5 percent in July, its several countries led to some questioning of the best level in ten years. governments' ability to carry through their poli- Canadian fiscal policy had provided stimulus cies and temporarily brought individual curren- for the recovery, while a successful program for cies under pressure; in fact, the Danish govern- public-sector wage and price restraint had reinment fell during the period, following debate forced the effects of recession in bringing about over fiscal restraint, which had been reflected the marked slowing in inflation. At the same briefly in pressure on the krone. time, monetary policy remained oriented toward Monetary policies remained generally restric- a return over time to price stability. The Bank of tive, with changes in official interest rates corre- Canada had earlier ceased to specify targets for sponding closely to the respective currencies' domestic monetary aggregates in the implemenpositions within the EMS. Central bank lending tation of monetary policy. Instead, it was monirates were raised in Germany and the Nether- toring a variety of economic and financial varialands early in the period when the mark and the bles, including the exchange rate. The exchange guilder were in the bottom half of the band. The rate was cited as a major influence on domestic Belgian franc was at or very near the floor of the prices, of particular importance at a time when joint float throughout the six months, and in late the authorities were moving to consolidate the November the National Bank of Belgium in- hard-won progress on inflation. creased its interest rates 1 percentage point to After the middle of August, U.S. interest rates counter some speculative pressure on the ex- turned lower, and by early October the interest change rate. By contrast, official interest rates differentials adverse to Canadian investments were cut in Ireland and Denmark at times when were nearly eliminated. Nevertheless, the Canathe currencies of those countries were trading at dian dollar did not strengthen against the U.S. or near the ceiling of the narrow band. dollar along with the other foreign currencies during this period, in part because a rise in imports, spurred by robust domestic demand, CANADIAN DOLLAR was eroding the current account surplus. After U.S. interest rates had begun to rise in As August opened, the Canadian dollar was October, market participants became concerned trading narrowly around Can.$1.23 ($0.8130) that Canadian interest rates would not match the against the U.S. dollar, while both rose strongly rise. Despite the rapid growth of Canadian indusagainst most other currencies. The Canadian trial production, output had still not regained its currency had held steady since early summer prerecession levels and the unemployment rate even though interest rate differentials, which remained above 11 percent. In this context and in normally favor Canadian assets, had shifted in view of the dramatic progress on inflation, marfavor of the U.S. dollar by as much as a full ket participants expected the Canadian authoripercentage point. ties to limit interest rate increases. Canadian Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 203 interest rates rose only slightly during Novem- ing November and December, mainly reflecting ber, and the negative interest rate gap widened this intervention. once again. The Canadian dollar recovered in late Decem- The Canadian dollar thus began to decline ber as U.S. interest rates turned lower, first early in November. The rate movement prompt- narrowing and then eliminating the interest rate ed some increase in trading in the currency, both disadvantage of Canadian assets. After dropping in the interbank market and on Chicago's IMM, to a low of Can.$1.2532 ($0.7980) in early Janufrom the low turnover that had prevailed during ary when the U.S. dollar rose strongly against all its long period of stability. The Canadian curren- foreign currencies, the Canadian currency recy continued to drop in December even after sumed its rise over the rest of the month as Canadian money market rates moved significant- interest differentials began to favor Canadian ly higher for the first time in over a year. With dollar investments. In addition, the currency U.S. rates also rising, differentials remained un- benefited from the publication of November favorable to Canadian assets. In addition, the trade statistics, showing that the trend of declinannouncement that the current account had ing monthly surpluses since May had begun to moved into deficit for the third quarter contribut- reverse. The currency ended January at ed to negative sentiment. The Bank of Canada Can.$1.2482 ($0.8012), down 1V percent from its 2 entered the market at times to counter the pres- level six months earlier. Over the period as a sure against the Canadian dollar, and Canadian whole, Canadian foreign exchange reserves had foreign exchange reserves fell $570 million dur- declined $350 million to $2.8 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 Industrial Production Released for publication March 15 average, the February index was 3.9 percent above the earlier high reached in July 1981. Industrial production increased an estimated 1.2 In market groupings, output of consumer percent in February following a rise of the same goods increased 0.9 percent in February. There size in January. As in January, the gains in was a rise of 1.9 percent in the production of output were widespread among products and home goods, and output of nondurable consumer materials, with especially large increases evident goods advanced 1.0 percent. However, auto asin home goods, construction supplies, and dura- semblies, at an annual rate of 8.0 million units in ble goods materials. At 159.9 percent of the 1967 February, were about the same as the January 1967 = 100 170 _ FINAL PRODUCTS - 190 MATERIALS 190 : Nondurable _ — Business equipment \ S' - 170 170 / \ A 150 150 Consumer goods - 130 130 - Defense and space - 110 110 'i I i I l 90 90 CONSUMER GOODS 190 INTERMEDIATE PRODUCTS 190 Business supplies 170 170 Nondurable 150 7 150 \ \ / u Durable \ / \J 130 130 v Construction supplies 110 J L 1969-70=100 Annual rate, millions of units 180 AUTOS 18 140 14 10 8 6 Domestic assemblies J I I i I 1978 1980 1982 1984 1978 1980 1982 1984 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

205 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1984 1983 1984 FFFeeebbb... 111999888333 tttooo FFFeeebbb... Jan. Feb. Oct. Nov. Dec. Jan. Feb. 111999888444 Major industry groupings Total industrial production 158.0 159.9 .8 .2 .5 1.2 1.2 15.8 Products, total 159.0 160.7 .5 .1 .8 1.3 1.1 14.5 Final products 156.8 158.2 .4 .3 1.0 1.3 .9 13.9 Consumer goods 159.6 161.1 -.3 -.5 .8 1.5 .9 12.3 Durable 163.7 164.9 -.5 -.5 1.6 3.3 .7 22.7 Nondurable 158.0 159.6 -.1 -.6 .5 .7 1.0 8.6 Business equipment 168.1 169.2 1.6 1.7 1.5 .9 .7 18.6 Defense and space 127.5 129.2 .9 .9 1.4 1.4 1.3 11.3 Intermediate products 167.1 169.7 .7 -.6 -.1 1.1 1.6 16.8 Construction supplies 154.8 157.8 .6 -.5 -.1 2.2 1.9 21.7 Materials 156.4 158.8 1.2 .3 .1 1.2 1.5 17.7 Major industry groupings Manufacturing 159.2 161.5 .7 .1 .3 1.5 1.4 16.9 Durable 147.7 150.3 .8 .6 .8 2.0 1.8 21.3 Nondurable 175.9 177.7 .6 -.5 -.2 .9 1.0 11.8 Mining 124.4 123.7 1.0 2.4 2.1 .6 -.6 7.0 Utilities 177.1 175.8 -1.6 -.1 2.0 -1.6 -.7 8.5 NOTE. Indexes are seasonally adjusted. rate of 8.1 million units; March assemblies are cent in February. There were sharp rises in the also scheduled near those rates. Production of production of basic metals such as steel and in business equipment increased 0.7 percent in Feb- the output of parts for equipment and for conruary, with especially large gains in manufac- sumer durables. Production of nondurable mateturing, power, commercial, and transit equip- rials gained 1.2 percent, and with coal output ment; the output of building and mining rising significantly, energy materials advanced equipment declined again, reflecting reduced oil 0.8 percent. and gas well drilling activity. In industry groupings, manufacturing output Production of supplies for construction and increased 1.4 percent, reflecting gains of 1.8 business use increased strongly in February after percent in durables and 1.0 percent in nondurasmall declines in the closing months of 1983. bles. Output declined in February for both utili- Output of durable materials increased 2.0 per- ties and total mining. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 Statements to Congress Statement by Paul A. Volcker, Chairman, Board ered strongly and, relative to the gross national of Governors of the Federal Reserve System, product, are close to the highest years of the before the Committee on the Budget, U.S. Sen- 1970s. ate, February 29, 1984. If these gains are to be maintained, we shall need productivity growth, we shall need a bal- I am pleased to appear before you today as you anced expansion that avoids bottlenecks, and we focus on the first Concurrent Budget Resolution shall need to encourage competition and investfor fiscal year 1985.1 shall address myself briefly ment. to the prospects and challenges that face us as we There is some evidence that the dismal proconsider both monetary and fiscal policies for the ductivity trend of the late 1970s is changing for remainder of 1984 and the years beyond. I be- the better. Some of that evidence is qualitative or lieve we have much upon which to build in particular to one industry or another—new efworking toward long-lasting expansion. But it forts at cooperation between management and also seems to me evident that difficult decisions labor, more flexible work rules, and less regulaare necessary now to make that prospect a tion. On an aggregative level, the evidence, while reality. not yet conclusive, suggests that we may be Over the past two years inflation has slowed seeing not just typical cyclical gains in productivdramatically, reaching the lowest rate in about a ity but also more lasting improvement. Producdecade. The first of those years was a period of tivity gains from here on are likely to be smaller serious recession. But 1983 was a year of recov- than those seen in the initial quarters of recovery stronger than most had believed was likely to ery. But there is also reason to hope that the occur. The increase of almost 61/t percent in real skills of a more experienced work force, coupled output during 1983 was roughly in line with the with management innovations and technological postwar recovery norm, and the decline in unem- progress, can sustain a somewhat more favorable ployment has been even sharper than usual. The trend over the years ahead. fact that we were able to achieve vigorous recov- That prospect is, of course, dependent in imery while containing inflation is what is so prom- portant part on new investment—as is our ability ising for the future. to avoid bottlenecks. We have, indeed, seen a The pressures of recession, deregulation of rapid increase in some types of investment dursome important industries, and import competi- ing the recovery period. But so far, rising busition have all contributed to a greater sense of ness investment has been largely concentrated in discipline and realism in pricing and wage bar- relatively short-lived equipment rather than in gaining. But we cannot, of course, claim success long-lived plant or major machinery that would against inflation until we can combine greater add substantially to production capacity. Housprice stability with prosperity over an extended ing has also rebounded. But, overall, net new period. private investment has remained relatively low The chances of "building-in" greater stability as a proportion of total GNP, as shown in will depend heavily on workers having the op- chart l.1 portunity for gains in real earnings and on satis- As we move from recovery to the expansion factory corporate profits. The past two years phase of economic activity, business investment have provided a more favorable setting in both respects. The real income of the average worker 1. The attachments to this statement are available on has risen as price increases slowed faster than request from Publications Services, Board of Governors of wages. After-tax economic profits have recov- the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

207 should rise over a broader front. Changes in tax growth in 1984 in a range of 4 to 43A percent, laws enacted in recent years should work in that provided that inflation, as anticipated, does not direction. But the question remains whether we accelerate markedly. The gains in output are can, as a nation, generate the supply of savings expected to generate a further expansion of new necessary to support both rising investment and job opportunities, and the unemployment rate is a huge government deficit. That, it seems to me, expected to decline to the area of IVi to IVA is the key policy issue before us. percent by year's end. These economic projec- The importance of dealing with that issue is tions, which are "central" tendencies of projechighlighted by several well-known facts. Interest tions of the members of the FOMC, are broadly rates are already high—too high—in absolute consistent with the short-term projections of the terms and relative to current price trends, tend- administration and the Congressional Budget Ofing to restrain those types of investment in which fice (CBO). interest costs loom large. In at least a few We do intend, as the year progresses, to assess industries—paper, certain plastic materials, closely the relationship between monetary and some types of electronic equipment—capacity economic activity and inflation, testing the asconstraints are already looming, and long lead sumptions and the analysis that suggest more times of investment mean that plans must be normal "velocity" relationships are returning. In implemented soon to avoid bottlenecks and shaping policy, however, we are strongly conthreats to noninflationary expansion. As the scious of the need to avoid any strong resurgence economy grows, more inventory investment will of inflationary pressures as the economy exalso be needed, adding another demand to our pands. limited supply of savings. Economic projections extending several years For the time being, we have been able to ahead are necessarily more problematical. Both supplement our domestic savings by drawing on the administration and the CBO have projected a large capital inflow from abroad. But, as I will continuing growth, reduced unemployment, and, discuss a little later, that development carries in varying degrees, limited further progress risks and dangers of its own and cannot be against inflation. Projections of that sort, as a sustained indefinitely. basis for planning, seem to me reasonable. But we should not be deluded into mistaking a projection for a certainty—or even a probability— MONETAR Y POLIC Y unless we are willing to take the measures reasonably necessary to achieve that end. Specifi- I have recently reviewed in some detail with the cally, the way the final choices before this com- Banking Committees our intentions with respect mittee are reached will bear critically on the to monetary policy. In summary, the Federal chances of meeting those economic projections. Open Market Committee (FOMC) essentially In this context, more rapid monetary and reaffirmed the ranges for the monetary and credit credit growth in an effort to speed progress aggregates for 1984 that were tentatively estab- toward lower interest rates would all too likely lished last July. Those ranges call for growth of be counterproductive. The economy, driven in the broader aggregates, M2 and M3, of between 6 large part by the purchasing power implicit in the and 9 percent and growth in Ml of 4 to 8 percent. deficit, is already growing at a satisfactory pace. These ranges are Vz to 1 percentage point below By feeding the concerns about inflation, excesthose for 1983. sive monetary growth would, in the end, have a The ranges for 1984 envisage that relationships perverse influence on interest rates. The resulbetween monetary and economic activity and tant heightened fears of inflation and instability inflation—summarized in the "velocity" of mon- would only reduce incentives to save and the ey—will broadly follow more normal trends and willingness of firms to make long-term commitcyclical developments, after departing markedly ments to productive investment. The continuing from past patterns in 1982 and early 1983. On flow of funds from abroad, upon which we are that assumption, monetary and credit growth dependent for the time being, would be discourshould be fully consistent with real economic aged. Depreciation of the dollar externally as a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 Federal Reserve Bulletin • March 1984 result of inflationary policies would not, in the forced increasingly to look abroad for capital to end, help our exporters, or those competing with supplement our domestic savings. imports, because that depreciation would be For some time, we have been able to draw accompanied by inflated domestic costs. upon foreign savings relatively easily. Funds In a real sense, one key contribution that the have been attracted not just by our interest rates Federal Reserve itself must make to our lasting and by our strong stock market, but by relative prosperity is to foster the expectation—and the confidence in our economic and political stabilreality—that we can sustain the hard-won gains ity. The effect has been to blunt some of the against inflation. In the end, that will set the impact of the budget deficit on our interest rates stage for further lasting reductions in interest and to help finance both the deficit and investrates and a sustained, better balanced, expansion ment. in economic activity generally. But, over time, reliance on increasing amounts of foreign capital is a tenuous and risky way to finance domestic growth and capital formation. THE ROLE FOR FISCAL POLICY Such reliance exacts a large cost in terms of rising trade and current account deficits—defi- What we in the Federal Reserve cannot do, by cits that cannot be sustained indefinitely. Moremanipulating the money supply, is achieve a over, a steady and growing flow of foreign capital better balance between the demand for and sup- is dependent on confidence in our ability to ply of savings. That is the essential role of fiscal properly manage our economic affairs, on relapolicy. tively high interest rates, or both. To the extent The state of the federal budget affects both our monetary or fiscal policies fail to justify that directly and indirectly the demands on the econ- confidence—to the extent inflationary pressures omy. The increase in the deficit that was record- again appear to be ascendant or our external ed last year helped account for the speed of the financial position is steadily weakened by large rebound in economic activity, even though inter- foreign borrowings—the greater the risk that new est rates, in historical terms, remained high. The capital flows from abroad will come less freely, deficit, in effect, increased purchasing power at a with adverse consequences for the dollar and for time when the economy was still feeling the interest rates. effects of recession. However, as the economy The second chart underscores the extraordihas grown, the adverse effects of the imbalance nary nature of our present fiscal position. In only of domestic savings and investment on credit one earlier recession period—1975—did the fedmarkets and on our external accounts have be- eral government absorb so large a share of total come more apparent. And those imbalances can credit flows, and in every postwar economic only worsen if deficits of the magnitude project- cycle, borrowing by the Treasury diminished ed by the CBO and others—deficits without substantially as a share of total credit flows precedent during a period of economic expan- during the second year of recovery. In contrast, sion—are permitted to materialize in coming the fraction of credit going to the Treasury, at 35 years. to 40 percent, will not decline much, if at all, this The two charts illustrate the sharp difference year from the unusually high level we saw in between the present budget trajectory and previ- 1983. ous periods of economic recovery and expan- To put the point another way, Treasury debt is sion. The first of those charts, summarizing expected to increase about 17 to 18 percent this sources and uses of available savings, shows year. Assuming credit grows about 10 percent graphically how the deficit in 1984 will continue this year—just above the midpoint of the to account for more than half of the demands for FOMC's range—all other demands for credit savings (net of depreciation). Those demands could rise some 8 percent, no more than in 1983 will, in fact, substantially exceed our capacity to (the first year of recovery). This would be an save domestically—an amount that for many unusual cyclical pattern. years has fluctuated roughly between 6V2 and 8V2 The Treasury is going to get the funds it needs percent of the GNP. Consequently, we are to cover the federal deficit. The question is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 209 whether other sectors will get enough funds, at become effective. At the least, the risks of erodreasonable interest rates, to support the bal- ing confidence and new market pressures should anced, higher investment, expansion we want. be relieved. To some extent, improved profits and cash flow, I know you are aware of another reason why relative to other recent expansions, could help expeditious action to reduce deficits is desirable: forestall excessive pressures. But the kind of the large deficits now being projected can be selfexpansion we and others foresee does imply perpetuating. more business borrowing, and housing and con- The direct effects are obvious. Interest paysumer credit needs—having increased by 11 and ments on debt issued to finance this year's deficit 15 percent respectively over the last half of the add to the deficit next year, and interest paypast year—are already expanding rapidly. ments on those deficits increase exponentially In essence, the demands of the federal govern- into the future, making it more difficult to reverse ment limit the rate of growth of other credit- the momentum. absorbing sectors of the economy. The rationing Let me illustrate the point somewhat differentdevice is interest rates held higher than would ly. The administration and the CBO's estimates otherwise be the case. Under the circumstances, of the administration's budget program differ in the more rapidly the economy grows and gener- considerable part because of the underlying ecoates private credit demands, the greater the risk nomic assumptions used. Specifically, the higher of rising interest rates. deficit forecasts of the CBO assume that interest We can, in concept, visualize an economic rates will not decline as much as the administraexpansion that continues despite financial tion estimates, compounding the effects of higher strains—an expansion characterized by relative- deficits originating from other factors. But, if we ly high interest rates and by high consumption seize the opportunity to take stronger and early supported by large deficits, but markedly slug- positive action to reduce the deficit and that gish investment and a widening trade deficit. action helps encourage lower interest rates than That, in itself, is hardly desirable, in terms of the projected by the CBO, then the deficit can be staying power of the expansion and future placed on a trend more in accord with adminisgrowth and productivity. But we also have to be tration estimates. In other words, procrastinaconscious of the added risks such financial pres- tion plainly exacerbates the problem, leaving us sures would pose—to thrift and other financial all with still more difficult choices not very far institutions, to less developed countries with down the road. heavy debt burdens, and their creditors in the Somewhat less obvious may be new budgetary United States and elsewhere, and to the fabric of pressures arising out of the attempts of various international trade. At some unknown point the special interests—consumers, workers, or sustainability of the expansion itself would be firms—to offset the effects of sustained high jeopardized. deficits on our international competitive position We cannot reasonably escape from these prob- and on interest rates. For example, the deterioralems by "monetizing" the Treasury debt through tion in the position of our industrial and farm excessive expansion of bank credit and the mon- products in world markets is already generating ey supply. The Federal Reserve, could, in con- demands for subsidies, tax relief, and special cept, take an approach that inflated all the num- protections for economic sectors as diverse as bers, but it cannot increase savings and reduce the family farm and the steel industry. The the savings-investment imbalance by undermin- effects of high interest rates on construction and ing confidence. What must be done is to deal housing costs call forth requests for new prowith the source of the problem—the excessive grams in those areas. deficits. While it is already late to make signifi- I suspect all of this is, by now, familiar to you. cant changes for fiscal year 1984, action now The real obstacle to action is not intellectual, but affecting fiscal 1985 and later years can only the difficulty of reaching a practical consensus on work in the direction of moderating potential specific spending or revenue measures to deal pressures; if sufficiently forceful, the market with the problem. In a sense, dealing with the could then well anticipate the time the actions deficit seems to be everyone's second priority— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 Federal Reserve Bulletin • March 1984 the first is particular spending programs or mea- Much has been achieved in these past few sures of tax relief that, viewed in isolation, have years to put the economy on a sounder footing— strong justification. too much, at too great a cost—to see it all Decisions in those areas—with political as well jeopardized now. The risks arise mainly from our as economic dimensions—are not within the own actions—or inaction. The amounts required competence of the Federal Reserve. I can only to make a real difference—to bring the trend of urge that they be faced sooner rather than later deficits under control—are surely not beyond before we are enveloped with an atmosphere of reach It has been done in the past, and it can be crisis, in financial markets and elsewhere. done again. • Chairman Volcker presented identical testimony before the House Committee on the Budget on March 1, 1984. Statement by Henry C. Wallich, Member, Board German mark, and higher amounts against the of Governors of the Federal Reserve System, weaker currencies. Against the Japanese yen the before the Subcommittee on Commerce, Trans- dollar has risen 20 percent in real terms; against portation, and Tourism of the Committee on the Canadian dollar it has depreciated slightly. Energy and Commerce, U.S. House of Repre- The cyclical behavior of the U.S. and foreign sentatives, March 6, 1984. economies has been a second factor contributing both to the time profile and to the widening of the It is my pleasure to appear before this subcom- U.S. trade deficit. The U.S. recession held down mittee to discuss the economic consequences of imports and thus delayed the rise in the trade large external deficits. deficit until after the middle of 1982, and the Our large and growing merchandise trade and relatively rapid expansion of the U.S. economy current account deficits, to which I shall refer as in 1983 was a dominant element in last year's our external deficits, have raised strong concerns trade developments, accounting for more than about the state of our tradable goods industries half of the $30 billion increase in our trade deficit and the prospect that the funds borrowed from from the fourth quarter of 1982 to the fourth abroad along with these deficits will soon trans- quarter of 1983. form the United States into a net debtor econo- As a third factor, the external financing probmy. lems of some countries, especially of our neigh- The widening of the external deficits can be bors in Latin America, have resulted in lower related, first and foremost, to the very substan- exports to these countries. tial appreciation of the dollar and the conditions A fourth factor has been the failure in the past that have given rise to the appreciation. On a of some of our industries to adjust adequately to weighted-average basis against the currencies of the pressures of international competition. the other major industrial countries, the dollar While the strong dollar and our large external has appreciated more than 45 percent since the deficit reflect, in part, our improved macroecofourth quarter of 1980, when our current account nomic performance and the greater return on balance was showing a small surplus. Some of financial investment in this country, in a more the appreciation has reflected our relatively good fundamental sense they are related to the budget inflation performance, but even in real terms— deficit. When the U.S. government runs a defiadjusted for changes in consumer price levels— cit, other sectors must, on balance, finance it. the weighted-average value of the dollar is now Part of the financing has been provided by fornearly 40 percent higher than it was at the end of eigners in the form of the net capital inflow that is 1980, and roughly 25 percent higher than its the counterpart of the current account deficit. average value for the entire floating rate period The remainder of the financing has been providsince 1973. Against the European currencies the ed by private domestic residents and state and appreciation in real terms has come to 30 percent local governments, which has diverted resources against the Swiss franc, 45 percent against the from productive domestic capital formation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 211 Naturally, the net capital inflow and the surplus during the years 1979-81. This has meant that we of private domestic savings over private domes- have been able to tolerate a sizable trade deficit tic investment have not arisen automatically, but without thereby incurring a deficit in the current have had to be induced. As a result real interest account, which combines services and trade. If rates have been higher than they would other- our international position shifts to that of a wise have been. In addition, the higher real debtor country, this advantage will be eroded; interest rates have been associated with upward indeed, it is estimated that our surplus of investpressure on the dollar: such upward pressure has ment income fell below $25 billion in 1983. prevailed over whatever downward pressure Eventually, the United States might find itself in may have emanated from the external deficit, the position of having to earn a surplus in the which usually is a negative element in the mar- trade balance to cover a deficit on investment ket's evaluation of a currency. Thus the dollar income. Other things equal, the larger the net has risen. In this way, high real interest rates, the debtor position we build up, the lower will be the strong dollar, and large external deficits are all value of the dollar necessary in the long run to linked to large federal budget deficits. generate the required trade balance. Some of the damage from the deficit is reflect- In addition, I might say that, for one of the ed in the decline in our exports. In value terms, richest countries in the world, it seems hardly exports declined about $25 billion from the appropriate either to be borrowing currently on a fourth quarter of 1980 to the fourth quarter of massive scale from the rest of the world or to be 1983, with two-thirds of the drop accounted for a net debtor to it. by a 40 percent contraction of shipments to Latin The external deficit also has a strong bearing America, mainly to Mexico, and the other third on the future of the dollar. I have noted the reflecting a 15 percent reduction in shipments to severe appreciation the dollar has experienced Western Europe. It is noteworthy that exports to against a number of currencies, which has been both Japan and Canada expanded somewhat one—but only one—of the reasons for the trade from 1980 to 1983. deficit. As the United States continues to borrow In volume terms, our merchandise exports abroad and moves toward net debtor status, were more than 15 percent lower in the fourth causing the rest of the world to hold ever larger quarter of 1983 than in the fourth quarter of 1980. amounts of dollar-denominated assets, the good Exports of capital goods declined more than 25 acceptance that our currency has had in the percent in volume terms, exports of nonagricul- world may wear out. Nobody can predict the tural industrial supplies more than 20 percent, timing, but in the longer run it seems probable and exports of agricultural products about 10 that the dollar-depressing effect of the external percent. The longer exports remain depressed, deficit will begin to overwhelm the dollar-supthe more difficult it becomes to maintain market- porting effect of higher interest rates. ing networks, and the more costly and difficult it I do not believe, therefore, that the current becomes to recover foreign sales. value of the dollar is sustainable, although it is If our current account deficit were to continue impossible to predict the sequence or timing of for long at the rate of around $80 billion that is events that will bring it down. If the dollar does likely to be recorded in 1984, the United States decline substantially while the budget deficit would soon become an international debtor remains unchanged, the external deficit will, country. At the end of 1983, the United States with a lag, also decline. That would reduce, in a has an estimated international net creditor posi- sense, the magnitude of the problem that this tion of about $125 billion. This balance could be committee is addressing. It would also, however, pushed to the minus side in little more than one intensify other problems created by the budget year. Our position as an international creditor deficit. With a return of the external sector has been a major support to our balance of toward balance, the foreign financing of the payments so far. Thanks to the very productive budget deficit would cease. It would have to be character of some of our foreign assets, the financed entirely at home, absorbing a still higher United States had a surplus of investment in- fraction of scarce available savings, thereby raiscome averaging more than $30 billion annually ing interest rates. The "crowding out" resulting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 Federal Reserve Bulletin • March 1984 from the budget deficit, which now goes in part budget deficit. Thanks to the strong economic against the foreign-trade-related sectors of the recovery last year, our tradeable-goods indus- U.S. economy and in part only against other tries as a group have not been severely injured on sectors of the economy, would then be directed balance. Their circumstances cannot justify addifully against the other sectors. This development tional import restrictions, except when foreign needs to be emphasized to make clear that a competition is judged to be unfair as defined by reduction or ending of the external deficit, with- our trade acts. out a reduction in the budget deficit, only shifts The costs of import protection are well known. the impact of our nation's budget problems with- The decision to protect one industry invariably out resolving them. imposes costs elsewhere in the economy. It is The impacts of the external deficit and the costly to other industries if foreign countries strong dollar have been felt by our manufacturing retaliate against U.S. exports, or if import reindustries, the agricultural sector, and some of strictions lead to higher dollar exchange rates our services industries. The effects are adverse than would otherwise prevail, or if the prices not only for exports, but also for domestic im- they must pay for inputs rise. Protection typicalport-competing sectors. On the whole, neverthe- ly leads also to higher prices and less choice for less, these impacts have been quite well ab- customers. An example of the consequences of sorbed. The American economy has expanded protection for consumers we now observe in the strongly. This has offset some of the pressure of recent very high profits of the automobile indusmounting import competition deriving from a try, which is protected by "voluntary" export strong dollar. Moreover, some of the industries restraints in Japan. Finally, protected industries that have suffered from import competition are in typically delay making the adjustments that are that condition more because of factors specific to necessary if they are ever to stand on their own their industry than because of the high dollar. feet. These costs should make us hesitant even to Industries that have failed to invest and reduce reciprocate against foreign protectionist actions. costs, that have not kept up with modern tech- Retailiatory measures we take damage our own nology, and that in some cases have paid wages interests, whatever they may do to foreigners. far above the national average for production Reducing the trade deficit by protectionist workers, are bound to suffer even at a lower level methods without reducing the budget deficit of the dollar. would not resolve our problems. It would cer- Aside from such industry-specific problems, I tainly not ease the pressures on our export do not see the United States being deindustrial- industries, which, thanks to the discipline of ized. The combined domestic and foreign de- international competition, are bound to be mand for U.S. industrial output has increased among our most efficient. since 1980. In particular, the industrial produc- The right policy prescription for dealing with tion index for manufacturing is currently almost the trade deficit, as I have stressed, is to reduce 6.percent higher than its level at the end of 1980, the structural deficit in our federal budget. Such when the dollar began to appreciate. Employ- action, of course, would not cure all the diverse ment in the manufacturing sector, on the other problems encountered in the various sectors of hand, is currently about 4 percent below its level our economy. But a substantial adjustment of the at the end of 1980, partly reflecting relatively budget toward balance, other things equal, rapid productivity growth in the manufacturing would lead to declines in real dollar interest sector, which historically has contributed to a rates, a depreciation of the dollar in exchange negative trend in the share of manufacturing markets, and (with some lag) a reduction in the employment in total private employment. external deficits. I hope that my remarks have My purpose in citing these statistics is to conveyed the message that the strong dollar and counsel strongly against additional import re- large external deficits are partly symptoms, strictions at this juncture as a means of dealing themselves damaging, of large budget deficits. I with the trade deficit, if the trade deficit is not hope as well that the Congress and the adminisreduced either by a decline in the dollar or, in a tration will resist temptations to try to suppress more fundamental sense, by a reduction in the the symptoms without curing the disease. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

213 Announcements REVISED FEE SCHEDULE Under the presorted deposit option, ACH origi- FOR ACH SERVICES nators will be assessed lower fees or be able to deposit transactions later if they sort transac- The Federal Reserve Board, on February 15, tions according to the receiving Federal Reserve 1984, approved a revised fee schedule for its office. automated clearinghouse (ACH) services and a Telephone advice service will be provided by plan to reduce and price ACH float over the next Reserve Banks to depository institutions whose year. The revised ACH fee schedule becomes ACH night-cycle transactions cannot be deliveffective March 29, 1984. ered by ground transportation in time for settle- The revised fee schedule is shown in the ment. The Reserve Banks will provide sufficient following tables: information about transactions so that depository institutions will be able to post the transactions to their customers' accounts on the settle- Basic ACH transaction fees and nighttime deposit ment date. surcharges (cents) Besides the revised ACH fee schedule, the Board also approved a plan to reduce and price Inter-ACH IInnttrraa-- NNiigghhttttiimmee ACH float over the next year. ACH float is TTrraannssaaccttiioonn AACCHH Un- Pre- New ddeeppoossiitt sorted sorted York1 ssuurrcchhaarrggeess generated whenever reserve or clearing accounts deposit deposit of the originators of ACH transactions are credited or debited before the offsetting debit or credit Debits originated ... 1.5 3.0 2.5 2.5 6.0 Debits received .... .5 1.0 1.0 .5 is posted to the receiving depository institution's Credits originated .. .5 1.0 .5 .5 3.02 accounts.1 In order to comply with the terms of Credits received .... 1.5 3.0 3.0 2.5 the Monetary Control Act, the Reserve Banks 1. These fees would apply where the Federal Reserve does not proposed (1) to reduce ACH float to the extent operate a commercial ACH. possible through operational improvements; (2) 2. Next-day settlement only. to eliminate certain types of ACH float by modifying settlement procedures; and (3) to price the Fixed ACH fees (dollars) remaining float. Deposit fees- A major factor in ACH float is delayed trans- Tape handling (per tape) 3.00 missions of interregional transactions between File processing (per file) 1.00 Federal Reserve offices. By implementing oper- Receiver handling fees1 Nonelectronic (per delivery) 1.75 ating improvements, the Reserve Banks expect Electronic2 (per transmission) 75 to reduce this float to approximately $7.0 million Telephone advice fees by the fourth quarter of 1984. The annualized Ten pieces of information 2.50 Each additional piece of information 05 value of this float is included in the cost base of the 1984 fee schedule. 1. Receiver handling fees will be assessed once a day per endpoint when ACH transactions are delivered. 2. Electronic endpoints are defined as endpoints that receive ACH 1. Originators of debit transactions are receivers of funds, transactions via data transmission or receivers that pick up ACH transactions at the Federal Reserve. and their accounts are credited on the settlement date. If the receiving depository institution's reserve or clearing account is not debited on the settlement date, debit float is generated. In conjunction with implementing the revised Originators of credit transactions are payors of funds, and fee schedule, the Reserve Banks will offer two their accounts are debited on the settlement date. If the receiving depository institution's reserve or clearing account new services—a presorted deposit option and is not credited on the settlement date, credit float is generattelephone advice for night-cycle transactions. ed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 Federal Reserve Bulletin • March 1984 The inability to process ACH paper return The following selection criteria for the High items within the current availability schedules is Dollar Group Sort are in effect: another source of ACH float. ACH float arising from paper return items will be reduced by • All presentment points with daily average changing the current availability schedule for out-of-zone presentments from the Federal Resuch interregional items from same-day to next- serve of $10 million or more will be included day settlement. Any residual float will be includ- initially. • Presentment points with daily average outed in the ACH cost base the next time ACH fees of-zone presentments of less than $10 million are set. may be added to the program on a case-by-case Midweek closing and nonstandard holiday basis when cost justified. ACH float results from an inability to post ACH transactions to the accounts of depository insti- If it appears that the costs of any presentment tutions that are closed during the middle of the point's inclusion in the HDGS outweigh the week (midweek closings) or on nonstandard holi- public benefits, that point may be dropped from days when the Reserve Bank is open. With the program. regard to midweek and nonstandard holiday ACH float, the Board determined to follow the same procedures that were recently adopted for REVISIONS TO DATA ON THE MONEY STOCK midweek and nonstandard holiday check float. AND RESERVES Measures of the money stock and reserves data INCLUSION OF NEW INSTITUTIONS were revised in February 1984. Data presented in IN PROGRAM FOR ACCELERATED tables 1.10, 1.20, and 1.21 will reflect these CHECK COLLECTION revisions beginning in the April 1984 BULLETIN. Data on the money stock have been revised to The Federal Reserve Board, on February 22, incorporate revisions to annual seasonal adjust- 1984, approved criteria for including certain de- ment factors and new benchmarks and, for M3, a pository institutions located outside Federal Re- change in definition. Seasonal factors have been serve cities in the program to accelerate the computed using the X-ll ARIMA procedure collection of checks that was adopted by the adopted in 1982. The nontransaction portion of Board in December 1982. The new criteria will M2 is now being seasonally adjusted as a become effective April 23, 1984. whole—instead of being built up from seasonally In December 1982, the Board adopted a two- adjusted savings and small time deposits—to phased program to accelerate the collection of reduce distortions caused by substantial portfochecks. The first phase provided for later deposit lio shifts arising from regulatory and financial deadlines and a later uniform presentment or changes in recent years, especially the spread of dispatch time for checks drawn on institutions MMDAs in 1983. A similar procedure is being located in cities with Federal Reserve offices used to seasonally adjust the remaining nontrans- (city institutions). The second phase of the pro- action balances in M3. All seasonal factors used gram calls for additional changes in deposit dead- to construct seasonally adjusted monthly data for lines and presentment or dispatch time for Ml, M2, and M3 are presented in table 1. Shown checks drawn on certain depository institutions in table 2 are monthly seasonal factors for selectlocated outside Federal Reserve cities (noncity ed components of the broader money stock meainstitutions). This phase of the program is called sures—savings, and small and large time deposthe High Dollar Group Sort (HDGS).1 The pur- its at commercial banks and thrift institutions— pose of HDGS is to speed up the collection of and seasonal factors for an experimental Ml checks drawn on such institutions as well as to series, which are derived from a model-based procedure applied to weekly data. Table 3 prereduce the cost of collecting these checks. sents seasonal factors for the currency and de- 1. A group sort is a service enabling a collecting bank to posit components of Ml and savings and time deposit checks drawn on a limited, preselected group of deposits at commercial banks. payor institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 215 Deposits in the money stock have been bench- largely to reduced reporting under the Garn-St marked to recent call reports. Further revisions Germain Act of 1982. In addition, the currency to deposits stem from changes to System report- component was revised to reflect revisions to ing procedures implemented in 1983, related figures on the amount of coin in circulation. The 1. Seasonal factors used to construct Ml, M2, and M3, monthly, 1983-84 NNoonnbbaannkk Nontransactions components TTrraannssaaccttiioonnss DDeemmaanndd YYeeaarr aanndd mmoonntthh CCuurrrreennccyy ttrraavveelleerrss ddeeppoossiittss11 ddeeppoossiittss11 cchheecckkss M2 M3 only 1983—January .9909 .9424 1.0173 1.0194 .9990 1.0045 February .9869 .9480 .9757 .9750 .9999 1.0082 March .9899 .9520 .9841 .9811 1.0041 1.0014 April .9971 .9536 1.0224 1.0110 1.0021 .9940 May .9992 .9798 .9841 .9836 1.0003 1.0007 June 1.0017 1.0526 .9955 .9951 1.0014 .9939 July 1.0085 1.1155 .9999 1.0017 1.0022 .9887 August 1.0020 1.1027 .9875 .9895 1.0012 1.0007 September .9968 1.0564 .9933 .9957 .9982 1.0005 October .9979 1.0043 1.0028 1.0049 .9995 .9974 November 1.0053 .9528 1.0085 1.0098 .9972 1.0040 December 1.0173 .9400 1.0276 1.0323 .9936 1.0083 1984—January .9895 .9414 1.0179 1.0202 .9994 1.0040 February .9870 .9470 .9767 .9758 1.0005 1.0054 March .9932 .9515 .9848 .9812 1.0047 1.0006 April .9978 .9541 1.0222 1.0105 1.0024 .9940 May .9996 .9814 .9844 .9838 1.0006 1.0006 June 1.0048 1.0545 .9954 .9949 1.0015 .9945 July 1.0079 1.1157 .9997 1.0017 1.0019 .9893 August 1.0036 1.1018 .9870 .9893 1.0008 1.0012 September .9989 1.0562 .9903 .9957 .9978 1.0013 October .9971 1.0048 1.0024 1.0046 .9993 .9980 November 1.0070 .9527 1.0080 1.0093 .9969 1.0042 December 1.0183 .9390 1.0278 1.0326 .9934 1.0081 1. In constructing Ml the seasonal factors for "transactions depos- demand deposits are used to construct seasonally adjusted demand its" are used to derive the seasonally adjusted sum of demand deposits. Seasonally adjusted other checkable deposits is derived as deposits and other checkable deposits. The seasonal factors for the difference between these two series. 2. Seasonal factors for selected deposit components of M2 and M3, monthly, 1983-84 Memo: Experimental alternative Commercial bank deposits Thrift institution deposits (model-based) seasonal factors for M1 Year and month Small- Large- Small- Large- Nonbank Savings denomi- denomi- Savings denomi- denomi- Currency travelers Transactions nation nation nation nation deposits checks time time time time —January .9925 1.0027 1.0118 .9906 1.0035 .9969 .9928 .9412 1.0203 February .9954 1.0075 1.0099 .9912 1.0042 .9967 .9879 .9476 .9755 March 1.0056 1.0081 1.0037 .9996 1.0038 .9906 .9918 .9570 .9822 April 1.0130 1.0020 .9892 1.0055 1.0041 .9890 .9963 .9599 1.0174 May 1.0116 1.0008 .9918 1.0047 1.0022 .9962 1.0000 .9786 .9797 June 1.0111 1.0001 .9888 1.0078 1.0007 .9909 1.0035 1.0423 .9954 July 1.0129 .9967 .9849 1.0125 .9995 .9909 1.0061 1.1110 .9991 August 1.0023 .9983 .9991 1.0015 .9967 1.0016 1.0037 1.1035 .9892 September .9929 .9973 1.0022 .9961 .9958 1.0120 .9987 1.0601 .9990 October .9917 .9976 1.0020 .9998 .9982 1.0203 .9982 1.0094 1.0051 November .9822 .9966 1.0058 .9950 .9971 1.0174 1.0073 .9595 1.0112 December .9806 .9939 1.0153 .9904 .9946 1.0035 1.0169 .9471 1.0309 —January .9934 1.0023 1.0095 .9914 1.0035 .9947 .9932 .9412 1.0201 February .9986 1.0073 1.0061 .9932 1.0042 .9933 .9884 .9477 .9764 March 1.0103 1.0072 1.0013 1.0022 1.0038 .9888 .9915 .9570 .9822 April 1.0146 1.0015 .9888 1.0071 1.0041 .9890 .9960 .9599 1.0169 May 1.0132 .9999 .9911 1.0060 1.0022 .9958 1.0006 .9799 .9806 June 1.0131 .9992 .9903 1.0098 1.0007 .9906 1.0032 1.0433 .9946 July 1.0123 .9971 .9871 1.0121 .9995 .9908 1.0062 1.1117 .9989 August 1.0004 .9993 1.0012 .9996 .9967 1.0021 1.0038 1.1029 .9897 September .9906 .9984 1.0036 .9936 .9958 1.0131 .9979 1.0599 .9984 October .9892 .9983 1.0034 .9982 .9982 1.0214 .9993 1.0087 1.0063 November .9809 .9968 1.0059 .9939 .9971 1.0194 1.0067 .9596 1.0109 December .9791 .9936 1.0145 .9901 .9946 1.0047 1.0168 .9472 1.0293 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 Federal Reserve Bulletin • March 1984 3. Seasonal factors for currency and deposit components of Ml and selected commercial bank components of M2 and M3, weekly, December 1983-December 1984 Commercial bank deposits TTrraannssaaccttiioonnss DDeemmaanndd WWeeeekk eennddiinngg CCuurrrreennccyy ddeeppoossiittss11 ddeeppoossiittss11 Small- Large- Savings denomination denomination time time 1983—December 5 1.0090 1.0210 1.0240 .9792 .9926 1.0153 12 1.0210 1.0260 1.0280 .9808 .9918 1.0149 19 1.0197 1.0280 1.0320 .9815 .9935 1.0130 26 1.0260 1.0130 1.0145 .9822 .9962 1.0133 1984—January 2 1.0050 1.0530 1.0750 .9808 .9959 1.0197 9 1.0050 1.0690 1.0680 .9928 .9983 1.0139 16 .9930 1.0375 1.0360 .9946 1.0021 1.0072 23 .9840 .9950 .9900 .9936 1.0040 1.0048 30 .9740 .9640 .9720 .9935 1.0048 1.0075 February 6 .9880 .9920 .9910 .9972 1.0069 1.0080 13 .9905 .9810 .9820 .9990 1.0071 1.0070 20 .9885 .9690 .9640 .9986 1.0073 1.0046 27 .9785 .9610 .9630 .9994 1.0066 1.0051 March 5 .9935 .9955 .9880 1.0045 1.0083 1.0041 12 .9980 .9880 .9860 1.0085 1.0080 1.0008 19 .9933 .9850 .9840 1.0099 1.0071 .9984 26 .9884 .9620 .9600 1.0111 1.0065 1.0011 April 2 .9925 1.0000 .9955 1.0163 1.0043 1.0015 9 1.0080 1.0310 1.0239 1.0201 1.0025 .9946 16 1.0009 1.0400 1.0300 1.0166 1.0021 .9887 23 .9950 1.0300 1.0080 1.0123 1.0015 .9855 30 .9880 .9920 .9850 1.0107 1.0014 .9840 May 7 1.0030 .9990 .9930 1.0121 1.0000 .9892 14 1.0018 .9930 .9930 1.0132 1.0000 .9894 21 .9975 .9770 .9800 1.0132 1.0000 .9912 28 .9930 .9580 .9610 1.0125 .9998 .9933 June 4 1.0030 1.0030 1.0010 1.0153 1.0003 .9933 11 1.0110 1.0050 1.0040 1.0160 .9997 .9915 18 1.0050 1.0050 1.0040 1.0119 .9992 .9886 25 .9975 .9710 .9740 1.0092 .9987 .9886 July 2 1.0050 .9980 .9970 1.0136 .9971 .9892 9 1.0180 1.0220 1.0228 1.0159 .9968 .9860 16 1.0106 1.0120 1.0160 1.0143 .9968 .9847 23 1.0045 .9870 .9860 1.0111 .9970 .9861 30 .9970 .9780 .9850 1.0071 .9973 .9894 August 6 1.0080 .9990 .9990 1.0048 .9985 .9976 13 1.0100 .9980 1.0030 1.0029 .9990 .9996 20 1.0043 .9860 .9870 .99% .9994 1.0002 27 .9930 .9650 .9670 .9964 .9996 1.0025 September 3 1.0010 .9920 .9960 .9945 .9979 1.0069 10 1.0100 1.0065 1.0110 .9931 .9981 1.0045 17 1.0008 1.0050 1.0100 .9906 .9984 1.0018 24 .9940 .9750 .9770 .9884 .9986 1.0034 October 1 .9870 .9850 .9850 .9911 .9968 1.0051 8 1.0065 1.0150 1.0170 .9937 .9970 1.0038 15 1.0000 1.0160 1.0200 .9918 .9978 1.0021 22 .9951 .9955 .9980 .9878 .9986 1.0022 29 .9870 .9840 .9845 .9838 .9987 1.0045 November 5 1.0045 1.0150 1.0160 .9838 .9982 1.0007 12 1.0115 1.0200 1.0170 .9831 .9980 1.0032 19 1.0072 1.0100 1.0130 .9809 .9976 1.0054 26 1.0045 .9850 .9910 .9791 .9966 1.0084 December 3 1.0050 1.0150 1.0164 .9776 .9935 1.0145 10 1.0220 1.0260 1.0240 .9781 .9922 1.0149 17 1.0200 1.0290 1.0320 .9782 .9927 1.0133 24 1.0260 1.0170 1.0250 .9795 .9949 1.0128 31 1.0090 1.0450 1.0560 .9809 .9966 1.0145 1. In constructing Ml the seasonal factors for "transactions depos- demand deposits are used to construct seasonally adjusted demand its" are used to derive the seasonally adjusted sum of demand deposits. Seasonally adjusted other checkable deposits is derived as deposits and other checkable deposits. The seasonal factors for the difference between these two series. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 217 net impact of these revisions was to raise the tion system because of the higher processing and levels and boost the growth rates of each of the transportation costs to collect items, increased aggregates in 1983. incidence of delayed funds availability, and high- The definition of M3 has been changed to er processing and transportation costs for reinclude term Eurodollars held by U.S. residents turned items. The Board is therefore encouraging in Canada and the United Kingdom, and at and requesting the banking industry to seek foreign branches of U.S. banks elsewhere. Term further improvements in check collection and Eurodollars had been included only in the broad funds availability and not to offer delayed dismeasure of liquid assets, L, owing to lags in data bursement arrangements. availability; a recent reporting change provides data on term Eurodollars on a schedule similar to that for other components of M3. NEW MEMBERS APPOINTED TO THRIFT Aggregate reserves and the monetary base INSTITUTIONS ADVISORY COUNCIL have been revised to incorporate annual revisions to seasonal adjustment factors and, begin- The Federal Reserve Board, on February 14, ning with February 1984, the conversion to con- 1984, announced the appointment of four new temporaneous reserve requirements (CRR). members to its Thrift Institutions Advisory Revised historical data on the money stock, Council and designated Thomas R. Bomar, Presincluding revised weekly data beginning in 1975 ident, AmeriFirst Federal Savings and Loan Asfor weeks ending on Monday (to conform to sociation, Miami, Florida, as President of the reporting periods for deposits under CRR) and Council for the current year. Richard H. Deihl, monthly data beginning in 1959, are available on Chairman of the Board and Chief Executive request from the Board of Governors of the Officer, Home Savings of America, Los Angeles, Federal Reserve System, Banking Section, California, has been designated Vice President of Washington, D.C. 20551. Revised monthly and the Council. weekly historical data on reserves and the mone- The Council is an advisory group made up of tary base are also available on request from the eleven representatives from thrift institutions. same source. The panel was established by the Board in 1980 and includes savings and loan, mutual savings bank, and credit union representatives. The DELAYED DISBURSEMENT PRACTICES Council meets at least four times each year with the Board of Governors to discuss developments The Federal Reserve Board announced that its relating to thrift institutions, the housing indus- Consumer Advisory Council met on March 14 try, mortgage finance, and certain regulatory and 15, in sessions open to the public. issues. Delayed disbursement consists of arrange- The newly appointed members to the Council, ments offered by depository institutions that are in addition to Mr. Deihl, are the following: designed to delay the collection and final settle- John T. Morgan, Chairman and Chief Execument of checks. Users of delayed disbursement tive Officer, American Savings Bank of New arrangements draw checks on institutions locat- York, New York, New York; Sarah R. Wallace, ed substantial distances from the payee or on President, First Federal Savings and Loan Assoinstitutions located outside Federal Reserve cit- ciation of Newark, Newark, Ohio; and J. Miies when alternate and more efficient payment chael Cornwall, Chairman of the Board and arrangements are available. Chief Executive Officer, First Texas Savings The Board expressed concern over delayed Association, Dallas, Texas. disbursement practices because they deny Those reappointed to the Council, in addition prompt access to funds and increase the risk of to Mr. Bomar, are the following: loss to consumers, businesses, and others. Also, James A. Aliber, Chairman and Chief Executhe increase in delayed disbursement practices tive Officer, First Federal of Michigan, Detroit, had reduced the efficiency of the check collec- Michigan; Gene R. Artemenko, President, Unit- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 Federal Reserve Bulletin • March 1984 ed Airlines Employees' Credit Union, Chicago, approved in individual cases. Others are being Illinois; John R. Eppinger, President and Chief proposed for the first time. Executive Officer, Main Line Federal Savings In addition, the Federal Reserve Board has and Loan Association, Villanova, Pennsylvania; extended, to March 30, the comment period on Norman M. Jones, President, Metropolitan Fed- certain proposals related to Regulation E (Eleceral Savings and Loan Association, Fargo, North tronic Fund Transfers) and Z (Truth in Lending). Dakota; Robert R. Masterton, President, The One Maine Savings Bank, Portland, Maine; and Fred A. Parker, President, Heritage Federal Sav- CHANGES IN BOARD STAFF ings and Loan Association, Monroe, North Carolina. The following changes have occurred in the official staff in the Division of Banking Supervision and Regulation. CONSUMER ADVISORY COUNCIL MEETING Robert A. Jacobsen, Assistant Director, retired, effective January 21, 1984. The Federal Reserve Board announced that its Thomas A. Sidman, Assistant Director, re- Consumer Advisory Council met on March 14 tired, effective January 28, 1984. and 15, in sessions open to the public. Samuel H. Talley, Assistant Director, re- The Council, with 30 members who represent signed, effective February 10, 1984. a broad range of consumer and creditor interests, advises the Board on the exercise of the Board's responsibilities under the Consumer Credit Pro- SYSTEM MEMBERSHIP: tection Act and on other matters on which the ADMISSION OF STATE BANKS Board seeks its advice. The following banks were admitted to membership in the Federal Reserve System during the PROPOSED ACTIONS period February 10 through March 10, 1984: The Federal Reserve Board, on February 17, Alabama 1984, proposed that the federal financial institu- Montgomery Colonial Bank tion regulators issue a joint policy statement to of Montgomery encourage institutions to disclose to their cus- Arizona tomers their practices regarding delayed avail- Phoenix Commercial State Bank ability of funds. California The Federal Reserve Board, on March 2, 1984, Fremont Commercial Bank of Fremont also proposed for public comment a list of nine Pleasanton Bank of Pleasanton nonbanking activities that, if adopted, would be Florida permissible activities for bank holding compa- Brandon Merchant Bank of Florida nies. Comment should be submitted to the Board Montana by May 2. Ronan Valley Bank of Ronan Some of the activities proposed for inclusion in Pennsylvania the Board's Regulation Y have already been Philadelphia William Penn Bank Texas Fort Worth Bank of Commerce -Fossil Creek Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

219 Legal Developments AMENDMENTS TO REGULATION J BANK HOLDING COMPANY, BANK MERGER, AND BANK SERVICES CORPORATION ORDERS ISSUED The Board has approved an amendment to Subpart A BY THE BOARD OF GOVERNORS of Regulation J, (12 CFR Part 210) governing the collection of checks and other items by Reserve Orders Issued Under Section 3 of Bank Holding Banks, to permit a Reserve Bank to charge a paying Company Act bank for checks made available to it by a Reserve Bank on a weekday that is a banking day for the Bank of Boston Corporation, Reserve Bank but where the paying bank is regularly Boston, Massachusetts closed. Effective April 2, 1984, the Board amends paragraph Order Approving the Acquisition of a Bank Holding (a) in § 210.9 of Regulation J by inserting "(1)" after Company "(a) Cash items.", redesignating subparagraphs (1), (2) and (3) as (i), (ii) and (iii) respectively, designating Bank of Boston Corporation, Boston, Massachusetts, the undesignated paragraph following subparagraph a bank holding company within the meaning of the (iii) as "(2)" and revising paragraph (2) of section Bank Holding Company Act of 1956, as amended 210.9 to read as follows: ("Act"), has applied for the Board's approval under section 3 of the Act (12 U.S.C. § 1842) to acquire indirectly 100 percent of the shares of the successor by Part 210—Collection of Checks and Other merger to Casco-Northern Corporation, Portland, Maine (Company).1 As a result of this transaction, Items and Wire Transfer of Funds Applicant would acquire Company's subsidiary bank, Casco Bank & Trust Company, Portland, Maine. Section 210.9—Payment Notice of the applications, affording an opportunity for interested persons to submit comments, has been (a) Cash items. given in accordance with section 3(b) of the Act. The * * * time for filing comments has expired, and the Board ^ * * * has considered the applications and all comments (iii) * * * received in light of the factors set forth in section 3(c) (2) The proceeds of any payment shall be available of the Act (12 U.S.C. § 1842(c)). to the Reserve Bank by the close of the Reserve Applicant, with nine banking subsidiaries, has con- Bank's banking day on the banking day of receipt of solidated assets of $18.7 billion and total domestic the item by the paying bank. If the banking day of deposits of $5.8 billion.2 It is the largest banking receipt is not a banking day for the Reserve Bank, organization in Massachusetts. Upon acquisition of payment shall be made on the next day that is a Company, which has total assets of $723.7 million and banking day for the Reserve Bank by the close of the total domestic deposits of $631 million, Applicant Reserve Bank's banking day. A paying bank that would control the second largest banking organization closes regularly on a weekday which is a banking in Maine and 17.8 percent of the total deposits in day for the Reserve Bank shall either pay on that commercial banks in the state. day by the close of the Reserve Bank's banking day for cash items that the Reserve Bank makes available to the paying bank on that day, or compensate 1. Applicant has applied under section 3(a)(1) of the Act, (12 the Reserve Bank for the value of the float associ- U.S.C. § 1842(a)(1)) for approval to merge its wholly-owned inactive subsidiary, First of Boston Holding Corporation, Boston, Massachuated with the items in accordance with procedures setts, (FBHC) with Company thereby causing FBHC to become a provided in its Reserve Bank's operating circular; in bank holding company. Applicant has also applied under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire Company at the such circumstances, the paying bank is not considtime it merges with FBHC. FBHC is of no significance except as a ered to receive the item until its next banking day. means to facilitate the acquisition of voting shares of Company by Applicant. 2. All banking data are as of September 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 Federal Reserve Bulletin • March 1984 Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohib- ined the proposal in light of its proposed guidelines for its the Board from approving any application by a bank assessing the competitive effects of market extension holding company to acquire any bank located outside mergers or acquisitions.4 In evaluating the effects of a of the state in which operations of the bank holding proposal on probable future competition, the Board company's subsidiaries are principally conducted, un- considers market concentration, the number of probaless such acquisition is "specifically authorized by the ble future entrants into the market, the size of the bank statute laws of the state in which such bank is located, to be acquired, and the attractiveness of the market for by language to that effect and not merely by implica- entry on a de novo or foothold basis absent approval of tion." Prior to February 7,1984, the statute laws of the the acquisition. After consideration of these factors in state of Maine authorized the acquisition of a banking the context of the specific facts of this case, the Board institution in Maine by a bank holding company that concludes that consummation of this proposal would controls a bank located in another state, if that other not have any significant adverse effects on probable state authorizes the acquisition of a banking institution future competition in any relevant market. in that state by a Maine bank holding company under There are a number of commercial banking organiterms no more restrictive than those imposed under zations—including 20 commercial banking organiza- Maine law. On February 7, 1984, the Maine law was tions in New York, six in Massachusetts, six in amended to eliminate the reciprocity requirement.3 Connecticut and four in Rhode Island—with assets of Therefore, Maine law now permits an out-of-state over $1.0 billion each, that can be identified as probabank holding company to acquire a bank in Maine ble future entrants into each of the 14 relevant markets without prior consideration of the nature of the bank- in which Company operates. On the basis of these and ing laws of the acquiring company's state. Applicant, other facts of record, the Board concludes that the an out-of-state bank holding company within the elimination of Applicant as a probable future entrant meaning of the Maine statute, is eligible to acquire a into the 14 markets served by Company would not bank holding company in Maine. Based on the fore- have a substantial anticompetitive effect in those margoing, the Board has determined that the proposed kets. Applicant's banking subsidiaries operate in 10 acquisition conforms with Maine law and is expressly markets in Massachusetts and one in Rhode Island. authorized by the statute laws of Maine. The Board There are at least nine probable future entrants into believes that statutes such as Maine's are fully consis- each of these markets and, in view of this and other tent with section 3(d) of the Act and provide a desir- facts of record, the Board concludes that elimination able means for creating a national market in banking of Company as a probable future entrant into the markets served by Applicant would not have a subservices through state action and without unnecessary stantial anticompetitive effect in those markets. restrictions on commerce in financial services across state lines. The financial and managerial resources of Applicant Company's banking subsidiaries operate in 14 mar- and Company are considered satisfactory and their kets in Maine. Consummation of this transaction prospects appear favorable. Affiliation with Applicant would not eliminate any existing competition in com- would enable Company's banking subsidiary to exmercial banking inasmuch as none of Applicant's pand the scope and array of its services. New services subsidiary banks operates in Maine. Certain of Appli- would include factoring, public finance and internacant's nonbanking subsidiaries compete with Compa- tional banking. Company would also be in a position to ny's banks in the provision of nonbanking services, expand its commercial lending and secondary mortincluding leasing, data processing, floor planning and gage lending services. Accordingly, it is the Board's inventory financing. Applicant provides these services judgment that the proposed transaction would be in nationwide and Company provides these services only the public interest and that the application should be in the state of Maine. Within the state of Maine, both approved. Applicant and Company engage in these activities to a Based on the foregoing and other facts of record, the limited extent, and their respective market shares are Board has determined that the applications under small. Thus, the Board concludes that the amount of section 3 should be and hereby are approved for the existing competition in these services that would be eliminated by this proposal is not significant. The Board has considered the effects of this proposal on probable future competition and has also exam- 4. "Proposed Policy Statement of the Board of Governors of the Federal Reserve System for Assessing Competitive Factors under the Bank Merger Act and the Bank Holding Company Act," 47 Federal Register 9017 (March 3, 1982). Although the proposed policy statement has not been adopted by the Board, the Board is using the policy 3. Me. Rev. Stat. Ann. tit. 9-B, § 1013 sub. 2 (As amended, guidelines in its analysis of the effects of a proposal on probable future February 7, 1984). competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 221 reasons set forth above. The transaction shall not be ("Belknap/Boeving Group") will form a corporation consummated before the thirtieth calendar day follow- to acquire the voting shares of Bank owned by them, ing the effective date of this Order or later than three and an additional 18 percent of Bank's common stock months after the effective date of this Order, unless owned by another group of individuals ("Waller such period is extended by the Board or by the Federal Group"). As a result of the transaction, the Belknap/ Reserve Bank of Boston, acting pursuant to delegated Boeving Group will control the majority of the shares authority. of Bank through Applicant. The Belknap/Boeving By order of the Board of Governors, effective Group also controls two other banks in the Bernie/ February 28, 1984. Maiden banking market: Maiden State Bank, Maiden, Missouri ("Maiden Bank"), and State Bank of Camp- Voting for this action: Chairman Volcker and Governors bell, Campbell, Missouri ("Campbell Bank").2 In a Martin, Wallich, Partee, Teeters, and Gramley. Absent and related action, the Belknap/Boeving will transfer its not voting: Governor Rice. shares of Maiden Bank to the Waller Group. Bank is currently the third largest commercial bank- WILLIAM W. WILES, ing organization in the Bernie/Malden banking market, [SEAL] Secretary of the Board with total deposits of $16.6 million representing approximately 16.5 percent of total deposits in commercial banks in the market. Campbell Bank is the second Bootheel Bancorp, largest bank in the market, with total deposits of $16.7 Bernie, Missouri million, representing approximately 16.6 percent of total deposits in commercial banks in the market. Order Approving Formation of a Bank Holding Maiden Bank is the largest Bank in the market with Company total deposits of $39.5 million and controls 39.3 percent of the market's deposits. Together, the three Bootheel Bancorp, Bernie, Missouri, has applied for banks control 72.4 percent of the market's deposits. the Board's approval under section 3(a)(1) of the Bank Section 3(c) of the Act precludes the Board from Holding Company Act ("BHC Act") (12 U.S.C. approving any proposed acquisition that may tend to § 1842(a)(1)) to form a bank holding company by create a monopoly, substantially lessen competition, acquiring 99.3 percent of the voting shares of State or restrain trade in any part of the United States, Bank of Bernie, Bernie, Missouri ("Bank"). unless the Board finds that such anticompetitive ef- Notice of the application, affording opportunity for fects are clearly outweighed by the convenience and interested persons to submit comments and views, has needs of the community to be served. In analyzing a been given in accordance with section 3(b) of the Act. case under these standards where, as here, the princi- The time for filing comments and views has expired, pals of an applicant control another banking organizaand the Board has considered the application and all tion in the same market as the bank to be acquired, the comments received in light of the factors set forth in Board considers the competitive effects of the transacsection 3(c) of the Act. tion whereby common control of the formerly compet- Applicant is a nonoperating Missouri corporation ing institutions was established.3 organized for the purpose of becoming a bank holding In 1980, Applicant's principals applied to form a company by acquiring Bank, which holds deposits of bank holding company through the acquisition of $16.6 million.1 Upon acquisition of Bank, Applicant Maiden Bank.4 The Board reviewed the facts surwould control the 448th largest commercial banking rounding the original affiliation of Bank, Campbell organization in Missouri and approximately 0.05 per- Bank, and Maiden Bank and concluded that the affilicent of total deposits in commercial banks in the state. ation had eliminated significant competition in the In light of the small share of the state's commercial Bernie/Malden banking market. Accordingly, the banking deposits that would be controlled by Appli- Board denied the application. In order to eliminate the cant, the Board concludes that consummation of the transaction would not have any serious adverse effects on the concentration of banking resources in Missouri. The proposal involves a restructuring of Bank's ownership whereby one group of Bank's shareholders 2. The Bernie/Malden banking market is approximated by the southern portion of Stoddard County, the northern third of Dunklin County, and western New Madrid County, all in Missouri. 3. Mid-Nebraska Bancshares, Inc., v. Board of Governors of the Federal Reserve System, 627 F.2d 266 (D.C. Cir. 1980). 4. Semo Bancshares, Inc., 66 FEDERAL RESERVE BULLETIN 509 1. All banking data are as of March 31, 1983. (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 Federal Reserve Bulletin • March 1984 anticompetitive effects of the subject proposal, the action shall not be consummated before the thirtieth majority owners of Bank, Maiden Bank, and Campbell calendar day following the effective date of this Order Bank have decided to end the affiliation between or later than three months after the effective date of Maiden Bank and Bank and Campbell Bank. The this Order, unless such period is extended for good Waller Group will sell its interest in Bank to the cause by the Board or by the Federal Reserve Bank of Belknap/Boeving Group and in return the Belknap/ St. Louis, acting pursuant to delegated authority. Boeving Group will sell its interest in Maiden Bank to By order of the Board of Governors, effective the Waller Group. Maiden Bank, the largest bank in February 7, 1984. the market, will be controlled solely by the Waller Group. All director and management interlocks be- Voting for this action: Vice Chairman Martin and Govertween Maiden Bank and the other banks will be nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker. terminated. Thus, Maiden Bank will become an independent competitor of Bank and Campbell Bank.5 Although the Belknap/Boeving Group will no longer JAMES MCAFEE, [SEAL] Associate Secretary of the Board have any interest in Maiden Bank, the Belknap/Boeving Group will indirectly control 78.7 percent of Bank and 96 percent of Campbell Bank. These two banks will control 33.8 percent of the deposits of commercial Continental Bancshares, Inc., banks in the market. Although Applicant's principals Dallas, Texas will still control a significant share of the market, the proposal as a whole is procompetitive in that the Order Approving Formation of a Bank Holding number of competitors in the market will increase Company from four to five and the Herfindahl-Hirschman Index (HHI) will decrease from 5540 to 2938. In addition, the Continental Bancshares, Inc., Dallas, Texas, has ap- Board has considered that the banks have been plied for the Board's approval under section 3(a)(1) affiliated for over 40 years, and the affiliation did not of the Bank Holding Company Act (12 U.S.C. represent an attempt to evade the antitrust laws or the § 1842(a)(1)) to form a bank holding company by Bank Holding Company Act.6 acquiring all of the voting shares of Mockingbird After considering the facts of record, including the Bancshares, Inc. ("Mockingbird"), and, indirectly, its long-term affiliation between the banks and the pro- subsidiary, Bank of Texas ("Texas Bank"), both of competitive effects of the divestiture, the Board con- Dallas, Texas; Wynnewood Bancshares, Inc. cludes that competitive considerations are consistent ("Wynnewood"), and, indirectly, its subsidiary, with approval of the application. Wynnewood Bank & Trust ("Wynnewood Bank"), Where principals of an applicant are engaged in both of Dallas, Texas; and Bank of Arlington ("Arlingoperating a chain of banking organizations, the Board, ton Bank"), Arlington, Texas. in addition to analyzing the one-bank holding company Notice of the application, affording opportunity for proposal before it, also considers the entire chain and interested persons to submit comments and views, has analyzes the financial and managerial resources and been given in accordance with section 3(b) of the Act. future prospects of the chain under the Board's Capital The time for filing comments and views has expired Adequacy Guidelines. Based upon such analysis in and the Board has considered the application and all this case, the financial and managerial resources and comments received in light of the factors set forth in future prospects of Applicant, Bank and the chain section 3(c) of the Act (12 U.S.C. § 1842(c)). banking organization are consistent with approval. Applicant is a nonoperating corporation organized Accordingly, it is the Board's judgment that the pro- for the purpose of acquiring Mockingbird, Texas posed acquisition is in the public interest and that the Bank, Wynnewood, Wynnewood Bank, and Arlington application should be approved. Bank, which together hold deposits of $138.3 million.1 On the basis of the record, the application is ap- Upon consummation of this proposal, Applicant proved for the reasons summarized above. The trans- would control the 51st largest banking organization in Texas, representing less than two-tenths of one percent of the total deposits in commercial banks in the state. 5. See Semo Bancshares, Inc., 69 FEDERAL RESERVE BULLETIN 228 (1984). 6. Texas East Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 636 (1983). 1. All deposit data are as of December 31, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 223 Mockingbird, Wynnewood and Arlington Bank are Wynnewood Bank (in 1978) when the future prospects the 34th, 44th, and 33rd largest, respectively, of 113 of these banks were uncertain due to their less than banking organizations competing in the Dallas banking satisfactory financial condition. Under the direction of market and together control approximately 0.5 percent Applicant's principal, the condition of these two banks of the total deposits in commercial banks in that has improved and their future prospects are favorable. market.2 This proposal represents a corporate restruc- Moreover, the Board notes that the combined total turing whereby the principal of Mockingbird, assets of the three banks at the time that Applicant's Wynnewood, and Arlington Bank would consolidate principal acquired Arlington Bank in December 1982, his ownership of these institutions through the use of was only $150.6 million.5 That acquisition was made in Applicant, which is controlled by the same principal. contemplation of this proposal; the application, how- Applicant's principal is not a principal of any other ever, was not filed immediately due to the necessity of banking organization in the relevant market and con- first obtaining other regulatory approvals. summation of the proposed transaction would not Accordingly, the Board finds that under these cirhave any significant adverse effects on the concentra- cumstances, in light of the improvements that Applition of banking resources or on competition in any cant's principal made in Texas Bank and Wynnewood relevant area. The Board concludes that competitive Bank, and given the fact that the combined banking considerations are consistent with approval of the assets of the three banking organizations only slightly application. exceeded $150 million at the time of the acquisition of The financial and managerial resources of Appli- Arlington bank, it is appropriate to apply the standards cant, Mockingbird, Texas Bank, Wynnewood, that would be applicable for small bank holding com- Wynnewood Bank, and Arlington Bank are generally pany formations involving banks with assets of less satisfactory and the future prospects for each appear than $150 million. In applying these standards, it is the favorable, particularly in light of certain commitments Board's opinion that banking factors are consistent made by Applicant in connection with this application. with approval of this application. In its consideration of this application, the Board has Although consummation of the proposal would efapplied the capital standards for banking organizations fect no immediate changes in the banking services with total assets of $150 million or less.3 While these offered by Bank, considerations relating to the convestandards generally are applicable to small bank hold- nience and needs of the community to be served are ing company formations with subsidiary bank assets consistent with approval of the application. Accordtotalling approximately $150 million or less, the Board ingly, the Board has determined that consummation of has permitted larger bank holding company formations the transaction would be in the public interest and that to be evaluated under these standards if the Board the application should be approved. finds that circumstances warrant such an exception.4 On the basis of the record, the application is ap- The Board, after reviewing all the facts of record, finds proved for the reasons summarized above. The transthat such circumstances exist in this case. action shall not be made before the thirtieth calendar Approval of this application would perpetuate the day following the effective date of this Order or later current management of Mockingbird, Wynnewood, than three months after the effective date of this and Arlington Bank, which the Board finds in this Order, unless such period is extended for good cause instance to be a substantial public benefit. Applicant's by the Board or by the Federal Reserve Bank of principal acquired control of Texas Bank (in 1977) and Dallas, pursuant to delegated authority. By order of the Board of Governors, effective February 28, 1984. Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Teeters, and Gramley. Absent and 2. The relevant banking market is the Dallas banking market, which consists of all of Dallas County and portions of Collin, Denton, Ellis, not voting: Governor Rice. Kaufman, Rockwell, and Tarrant Counties, Texas. 3. "Federal Reserve Board Policy Statement for Assessing Finan- WILLIAM W. WILES, cial Factors in the Formation of Small One-Bank Holding Companies," 66 FEDERAL RESERVE BULLETIN 320 (1980); Federal Reserve [SEAL] Secretary of the Board Regulatory Service 114-855. The Board also applies these guidelines to bank holding company formations involving more than one bank where the total combined assets of the banks do not exceed $150 million, see, "Capital Adequacy Guidelines," Joint Statement by Federal Reserve Board and Comptroller of the Currency (December 17, 1981). 4. Tulsa Commerce Bancshares, Inc., 68 FEDERAL RESERVE BUL- 5. The combined total assets of the banking organizations to be LETIN 196 (1982), and The Union of Arkansas Corporation, 66 acquired by Applicant were approximately $177 million as of Septem- FEDERAL RESERVE BULLETIN 659 (1980). ber 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 Federal Reserve Bulletin • March 1984 Locust Grove Banshares, Inc., since principals of Applicant acquired control of Bank Locust Grove, Oklahoma in March 1983. However, the Board has reviewed the record to determine whether the affiliation between Order Approving Acquisition of a Bank Applicant and Bank resulted in any adverse effects on competition in the Mayes County banking market. Locust Grove Banshares, Inc., Locust Grove, Okla- While the affiliation eliminated some existing competihoma, a bank holding company within the meaning of tion between Applicant and Bank,3 based on the the Bank Holding Company Act, has applied for the record, particularly Bank's condition when it was Board's approval under section 3(a)(3) of the Act acquired by Applicant's principals, the Board does not (12 U.S.C. § 1842(a)(3)) to acquire 93.9 percent of the believe that the effects of the transaction on competivoting shares of Bank of Commerce, Chouteau, Okla- tion were so serious as to warrant denial of the homa ("Bank"). application. Notice of the application, affording opportunity for The financial and managerial resources and future interested persons to submit comments, has been prospects of Applicant, its subsidiary, and Bank are given in accordance with section 3(b) of the Act. The regarded as generally satisfactory and their future time for filing comments has expired, and the Board prospects appear favorable. While Applicant will incur has considered the application and all comments re- some debt in connection with the acquisition of Bank, ceived in light of the factors set forth in section 3(c) of it appears that Applicant has resources to service the the Act. debt through dividends from its existing subsidiary Applicant controls one banking subsidiary in Okla- bank, while maintaining adequate capital at both Bank homa with total deposits of approximately $10.5 mil- and the existing subsidiary. Accordingly, considerlion, representing 0.04 percent of the total deposits in ations relating to banking factors are consistent with commercial banks in the state.1 Bank, with deposits of approval. Considerations relating to the convenience $8.4 million, is one of the smallest banking organiza- and needs of the community to be served are also tions in Oklahoma, and controls 0.03 percent of the consistent with approval of the application. Accordtotal deposits in commercial banks in the state. Upon ingly, the Board has determined that consummation of consummation of this transaction, Applicant would the transaction would be consistent with the public interest and that the application should be approved. control 0.07 percent of the total deposits in commercial banks in the state. The Board concludes that On the basis of the record, this application is apconsummation of this transaction would have no sig- proved for the reasons summarized above. The transnificant effect on the concentration of banking re- action shall not be made before the thirtieth calendar sources in Oklahoma. day following the effective date of this Order, or later Both Applicant and Bank compete in the Mayes than three months after the effective date of this County banking market.2 Bank is the fifth largest Order, unless such period is extended for good cause banking organization in that market, controlling ap- by the Board or by the Federal Reserve Bank of proximately 7.1 percent of the total deposits in com- Kansas City, acting pursuant to delegated authority. mercial banks in the market. Applicant is the third By order of the Board of Governors, effective largest commercial banking organization in the mar- February 2, 1984. ket, controlling approximately 8.8 percent of the total deposits in commercial banks in the market. Upon Voting for this action: Chairman Volcker and Governors consummation of this transaction, Applicant would Martin, Wallich, Partee, Teeters, Rice, and Gramley. remain the third largest commercial banking organization in the market, and its share of the total deposits in JAMES MCAFEE, commercial banks in the market would increase to 15.9 [SEAL] Associate Secretary of the Board percent. The acquisition of Bank by Applicant would not eliminate any existing competition between the two, 3. Specifically, the Herfindahl-Hirschman Index ("HHI") of the Mayes County banking market increased by 125 points to 2911 as a result of the acquisition of Bank by Applicant's principals. Under the Department of Justice Merger Guidelines, a market in which the postmerger HHI is over 1800 is considered highly concentrated and a merger that produces an increase in excess of 50 points would 1. All banking data are as of December 31, 1982. generally be subject to challenge by the Department. However, the 2. The Mayes County banking market is approximated by Mayes Department of Justice did not submit any comment or object to County, Oklahoma, excluding the town of Langby. consummation of the proposed transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 225 NCNB Corporation, Applicant, with two bank subsidiaries, has consoli- Charlotte, North Carolina dated deposits of $6.8 billion.2 It is the largest banking organization in North Carolina controlling one bank Order Approving Acquisition of Bank Holding subsidiary with deposits of $4.8 billion, representing Company 20.7 percent of the total deposits in commercial banks in that state. The Board has previously determined NCNB Corporation, Charlotte, North Carolina, a that the statute laws of Florida expressly authorize bank holding company within the meaning of the Bank Applicant to acquire banks in Florida, and that such Holding Company Act, has applied for the Board's acquisitions are consistent with the interstate banking approval pursuant to section 3(a)(3) of the Act prohibition contained in section 3(d) of the Act, and (12 U.S.C. § 1842(a)(3)) to acquire Ellis Banking relevant state laws.3 Corporation, Bradenton, Florida, also a bank holding NCNB is the eighth largest banking organization in company. Florida, controlling one bank subsidiary, with deposits Notice of the application, affording opportunity for of $2.0 billion, representing approximately 3.7 percent interested persons to submit comments, has been of the total deposits in commercial banks in Florida.4 given in accordance with section 3(b) of the Act. The Upon acquisition of Ellis (deposits of $1.4 billion), time for filing comments has expired, and the Board Applicant would control 6.3 percent of the total deposhas considered the application and all comments re- its in commercial banks in Florida and would become ceived in light of the factors set forth in section 3(c) of the fourth largest banking organization in that state. the Act. (12 U.S.C. § 1842(c)). The Board has carefully considered the effects of the On the basis of the record, the application is ap- proposal on the structure of banking in Florida and has proved for the reasons set forth in the Board's state- concluded that consummation of this transaction ment, which will be released at a later date. would not significantly increase the concentration of By order of the Board of Governors, effective banking resources in that state. February 15, 1984. Applicant and Ellis compete in 11 banking markets in Florida. In eight of these markets, however, either Voting for this action: Chairman Volcker and Governors Applicant or Ellis or both do not have a significant Wallich, Partee, Rice, and Gramley. Voting against this presence. Accordingly, the Board concludes that any action: Governor Teeters. Absent and not voting: Governor adverse effect on existing competition in these markets Martin. would not be significant.5 In three of these 11 markets, Bradenton, New Port Richey and Sarasota, approval JAMES MCAFEE, of these applications would have a more significant [SEAL] Associate Secretary of the Board effect on existing competition between Applicant and Ellis. Ellis is the largest banking organization in the Bra- Statement By Board of Governors of the Federal denton banking market, controlling deposits of $185.6 Reserve System Regarding the Application of NCNB million,6 representing 22.6 percent of the total deposits Corporation to Acquire Ellis Banking Corporation in commercial banks in the market.7 Applicant is the ninth largest banking organization in the Bradenton By Order dated February 15, 1984, the Board apbanking market, controlling deposits of $13.8 million, proved the application of NCNB Corporation, Charrepresenting 1.7 percent of the total deposits in comlotte, North Carolina, pursuant to section 3(a)(3) of the mercial banks in the market. Upon acquisition of Ellis, Bank Holding Company Act (12 U.S.C. § 1842(a)(3)) to acquire Ellis Banking Corporation, Bradenton, Florida. In this Statement, the Board sets forth its reasons for approving the application.1 2. All banking data are as of June 30, 1983, unless otherwise indicated. 3. NCNB Corporation, 68 FEDERAL RESERVE BULLETIN 54 (1982). 4. Pursuant to Board approval, Applicant has previously acquired three banking organizations in Florida: First National Bank of Lake 1. A number of comments on the application have been received City; Gulfstream Banks, Inc.; and Exchange Bancorporation, Inc. from minority shareholders of Ellis concerning the fairness of the offer Applicant has since consolidated these banks under the name of to minority shareholders. These commenters have essentially alleged NCNB National Bank of Florida. that the offer to minority shareholders of Ellis differs from that made 5. These markets are the East Pasco County, East Polk County, to the majority shareholders. Pursuant to the court's decision in Fort Myers, Orlando, Pinnellas County, Tampa, Venice, and West Western Bancshares Inc. v. Board of Governors, 480 F.2d 749 (10th Polk County banking markets. Cir. 1973), the Board may not deny applications under section 3 of the 6. Market data are as of June 30, 1982. Act solely because of an applicant's failure to extend substantially 7. The Bradenton banking market is defined as all of Manatee equal purchase offers to minority shareholders. County, Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

226 Federal Reserve Bulletin • March 1984 Applicant would become the largest banking organiza- deposits of $191.3 million, representing 30.5 percent of tion in the market, controlling 24.3 percent of the total the total deposits in commercial banks in the market.11 deposits in commercial banks in the market. Applicant is the fifth largest banking organization in While consummation of the transaction would elimi- the market, with deposits of $37.2 million, representnate some existing competition in the Bradenton bank- ing 5.9 percent of the total deposits in commercial ing market, the Board believes that a number of factors banks in the market. Upon consummation of this mitigate the anticompetitive effects of the acquisition. proposal, Applicant would become the largest banking Upon consummation, the Herfindahl-Hirschman In- organization in the market, controlling 36.4 percent of dex ("HHI") would increase by only 76 points to 1784 the total deposits in the market and the HHI would and the market would remain moderately concentrated increase 362 points to 2772. as measured by this index.8 In addition, eight banking Ellis is the largest banking organization in the Saraorganizations would remain in the market after con- sota banking market, with deposits of $282.4 million, summation, including several statewide banking orga- representing 31.5 percent of the total deposits in nizations. commercial banks in the market.12 Applicant is the The Board also has considered the influence of thrift eighth largest banking organization in the market with institutions in evaluating the competitive effects of this deposits of $23.3 million, representing 2.6 percent of proposal.9 In this market, thrift institutions control the total deposits in commercial banks in the market. almost 50 percent of the combined total deposits of Upon consummation of the proposed transaction, the banks and thrifts in the market. The record indicates HHI would increase 164 points to 2195. that thrift institutions already exert a considerable The Board views the competitive effects of consumcompetitive influence in the market as providers of mation in the New Port Richey and Sarasota banking consumer transaction accounts and consumer loans, markets with concern and, absent the substantial and that two of the market's thrifts are substantially presence of thrifts in these markets, believes that larger than any of the market's banking organizations. competitive factors would be substantially adverse. In In addition, eight of the ten thrifts in this market offer evaluating the competitive effect of thrifts in these commercial checking accounts and nine of them en- markets, the Board has considered their large share of gage in the business of making commercial loans. At total deposits in these markets, the fact that thrifts are the same time, the record indicates that the portfolios the largest depository institutions in both markets, the of commercial banks in the market resemble the similarity in the services offered by thrifts and banks, portfolios of thrift institutions in the market. For and that the portfolios of the banks in these markets example, on average, 52 percent of the loan portfolios indicate they are in the same lines of business as the of the commercial banks in the market are in real thrifts.13 estate loans, while only 15 percent are in commercial In the New Port Richey market, thrift institutions and industrial loans.10 In view of these facts, the Board have a substantial presence, controlling almost 62 has determined that consummation of this proposal percent of the total deposits in the market. Moreover, would not have a significantly adverse effect on exist- two of the market's thrifts are substantially larger than ing competition in the Bradenton banking market. any of the market's commercial banking organiza- Ellis is the second largest of seven banking organiza- tions. The Board has also considered the significant tions in the New Port Richey banking market, with extent to which thrifts compete with commercial banks in the New Port Richey market as reflected in the similar asset and liability composition of the portfolios of banks and thrifts in this market. For example, 8. Under the United States Justice Department Merger Guidelines (June 14, 1982), a market in which the post-merger HHI is between 1000 and 1800 is considered moderately concentrated. In such markets, the Department is not likely to challenge a merger that produces an increase in the HHI of less than 100 points, as in this case. 11. The New Port Richey banking market is approximated by the 9. The Board has previously determined that thrift institutions have western portion of Pasco County including the communities of Holibecome or at least have the potential to become, major competitors of day, Hudson, and New Port Richey. commercial banks. Florida National Banks of Florida, Inc. (Royal 12. The Sarasota banking market is approximated by Sarasota Trust Bank Corp.), 70 FEDERAL RESERVE BULLETIN 147 (1984) (Press County excluding the southern portions of the county. Release dated January 25, 1984); Sun Banks, Inc. (Flagship Banks, 13. Under the provisions of the Thrift Institutions Restructuring Inc.), 69 FEDERAL RESERVE BULLETIN 934 (1983); First Tennessee Act, Title III of the Garn-St Germain Depository Institutions Act of National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 1982, 96 Stat. 1469, 1499-1500, the commercial lending powers of 10. If thrift institutions in the Bradenton market are included in the federally chartered thrift institutions were greatly expanded. Similarmarket analysis, Applicant's market share would be 0.9 percent, Ellis' ly, in 1980, Florida law was substantially amended to expand the would be 11.4 percent and the HHI would increase by only 19 points commercial lending and other asset powers of state chartered thrift to 1198. institutions. FLA. STAT. ANN. § 665 (West Supp. 1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 227 13 of the market's 16 thrifts offer commercial checking Based on the facts that in both the New Port Richey accounts and 12 of them offer commercial loans. In and Sarasota markets thrifts hold over 50 percent of this regard, the record indicates that thrifts hold more market deposits and provide substantial competition than 10 percent of the commercial loans made by to the banks in these markets, the Board believes it is depository institutions in the market.14 The record also appropriate to take thrifts into account in evaluating indicates that the orientation of commercial banks in the competitive effects of the proposed acquisition in the market is similar to that of the thrifts. For example, these markets. In fact, even considering only 50 peron average, commercial banks have over 70 percent of cent of the deposits held by thrifts in these markets, their portfolios in real estate loans and only 11 percent the market analysis indicates that concentration ratios of their loans in commercial and industrial loans. would be acceptable. Accordingly, in view of the large Similarly, thrift institutions have approximately 82 share of these markets' deposits held by thrifts, their percent of their portfolios in real estate loans.15 large size, and the similarity of the services and The elimination of existing competition in the Sara- portfolios of commercial banks and thrifts in these sota market is similar cause for concern. However, the markets, the Board has determined that consumma- Board is persuaded that, as in the case of the New Port tion of this transaction would not have a significantly Richey market, the substantial presence of thrifts in adverse effect on existing competition in these marthe Sarasota market and the similarity of the portfolios kets. of the thrifts and commercial banks mitigate this The Board has also considered the effect of consumconcern. There are nine thrifts in the Sarasota banking mation of this proposal on probable future competimarket, which together control almost 54 percent of tion.18 There are sixteen banking markets in which the total deposits in the market, and two of these either Applicant or Ellis, but not both, compete. In thrifts are substantially larger than any of the commer- evaluating the effects of a proposal on probable future cial banks in the market. Moreover, thrifts are signifi- competition, the Board considers market concentracant competitors of banks in the Sarasota market. For tion, the number of probable future entrants into the example, each of the 10 thrifts in the market offers market, the size of the bank to be acquired and the consumer checking accounts and all but one offer attractiveness of the market for entry on a de novo or commercial checking accounts. In addition, all market foothold basis absent approval of the acquisition. In thrifts offer NOW accounts and some have as much as none of these markets would the proposed acquisition 25 percent of their deposits in NOW accounts. More- require intensive analysis under the Board's proposed over, thrifts hold at least 10 percent of the commercial guidelines. After consideration of these factors in the loans made by depository institutions in the market. context of the specific facts of this case, the Board Finally, another important factor in weighing thrifts in concludes that consummation of this proposal would the competitive analysis of the Sarasota banking mar- not have any significant adverse effects on probable ket is the similarity of the portfolios of commercial future competition in any relevant market. banks in the market to those of the market's thrifts.16 Applicant has a number of nonbank subsidiaries Based on the similar orientation of thrift and commerengaged in consumer and commercial finance and cial bank organizations in the market, the amount of leasing activities which compete in a number of the thrift participation in commercial bank activities apmarkets served by bank subsidiaries of Ellis. Although pears particularly significant.17 Ellis' subsidiaries compete in the relevant product markets, in each market, both Ellis and Applicant have relatively small market shares. Moreover, with respect to each market, there are numerous alterna- 14. Thrifts only recently acquired their expanded commercial bank tives. Thus, the amount of existing competition that powers. Thus, this figure may not reflect the true extent to which would be eliminated in these markets as a result of thrifts are actually competing with commercial banks in these product consummation is not significant. lines. 15. If the thrift institutions in the New Port Richey banking market The financial and managerial resources and future are included in the market analysis, Applicant's market share of total prospects of Applicant, Ellis and their subsidiaries are market deposits would be only 2.3 percent and Ellis' would be 11.7 percent. Moreover, the HHI would be only 1163 and, upon consummation of the proposed transaction, would increase by only 53 points. 16. For example, on average, commercial banks have 64 percent of their loan portfolios in real estate loans, while only 14 percent are in commercial and industrial loans. While thrifts have a somewhat larger 18. "Proposed Policy Statement of the Board of Governors of the percentage, the record indicates that both thrifts and banks have a Federal Reserve System for Assessing Competitive Factors under the similar orientation toward real estate lending. Bank Merger Act and the Bank Holding Company Act," 47 Federal 17. If the thrift institutions in the Sarasota banking market are Register 9017 (March 3, 1982). Although the proposed policy stateincluded in the market analysis, the HHI would rise by 35 points to ment has not been adopted by the Board, the Board is using the policy 1524, Applicant's share of the total deposits in the market would be guidelines in its analysis of the effects of a proposal on probable future 14.6 percent, and Ellis' share would be 1.2 percent. competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

228 Federal Reserve Bulletin • March 1984 considered satisfactory. Affiliation with Applicant Semo Bancshares, Inc., would enable Ellis' banking subsidiaries to expand the Maiden, Missouri scope of their banking services to include a full range of consumer loans, credit and debit card services, Order Approving Formation of a Bank Holding factoring, accounts receivable financing, leasing, trust Company services and international banking services. In addition, affiliation would enable Ellis' banking subsidiar- Semo Bancshares, Inc., Maiden, Missouri, has applied ies to offer credit life, accident and health insurance at for the Board's approval under section 3(a)(1) of the lower rates. Consequently, considerations relating to Bank Holding Company Act ("BHC Act") (12 U.S.C. the convenience and needs of the communities to be § 1842(a)(1)) to form a bank holding company by served lend slight weight toward approval of the acquiring 99.1 percent of the voting shares of Maiden application and outweigh any anticompetitive effects State Bank, Maiden, Missouri ("Bank"). that may result from consummation of this proposal. Notice of the application, affording opportunity for Based upon the foregoing and all the facts of record, it interested persons to submit comments, has been is the Board's judgment that consummation of the given in accordance with section 3(b) of the Act. The transaction would be consistent with the public inter- time for filing comments has expired, and the Board est and should be approved. has considered the application and all comments re- On the basis of the record and for the reasons ceived in light of the factors set forth in section 3(c) of discussed above, the Board has determined that the the Act. application should be, and hereby is, approved. The Applicant is a nonoperating Missouri corporation transaction shall not be consummated before the thirti- organized for the purpose of becoming a bank holding eth day following the effective date of the Board's company by acquiring Bank, which holds deposits of Order or later than three months after the effective $39.5 million.1 Upon acquisition of Bank, Applicant date of the Board's Order, unless such period is would control the 206th largest commercial banking extended for good cause by the Board or by the organization in Missouri and approximately 0.13 per- Federal Reserve Bank of Richmond pursuant to dele- cent of total deposits in commercial banks in the state. gated authority. In light of the small share of the state's commercial banking deposits that would be controlled by Appli- February 23, 1984 cant, the Board concludes that consummation of the transaction would not have any serious adverse effects JAMES MCAFEE, on the concentration of banking resources in Missouri. [SEAL] Associate Secretary of the Board This proposal involves a restructuring of Bank's ownership whereby one group of Bank's existing shareholders ("Waller Group") will form a corporation to acquire 100 percent of Bank's voting shares. Dissenting Statement of Governor Teeters The corporation will acquire the Waller Group's shares of Bank in addition to shares of Bank owned by This case represents a substantial departure from prior another group of individuals ("Belknap/Boeving Board decisions involving the weighting of thrifts in Group"). The Waller Group will own 100 percent of the Board's competitive analysis. In this case, the the shares of Applicant. Board relies solely on the purported competition from Bank is currently the largest commercial banking thrifts to mitigate what would otherwise be a clearly organization in the Bernie/Malden banking market, anticompetitive situation in the New Port Richey and with total deposits of $39.5 million, representing 39.3 Sarasota banking markets. percent of the total deposits in commercial banks in In my view, it is not clear that thrifts provide direct the market.2 The Belknap/Boeving Group also concompetition to the banking organizations in these trols two other banks in the market: State Bank of markets. For this reason, I believe the Board should Campbell, Campbell, Missouri ("Campbell Bank") establish a system with an objective methodology for and State Bank of Bernie, Bernie, Missouri ("Bernie weighting the competition from thrifts. Bank"). Bernie Bank and Campbell Bank together Based on the record in this case, I cannot concur in the majority's apparent decision to weight thrifts at least 50 percent merely to reduce the concentration ratios to acceptable levels. Accordingly, I dissent. 1. All banking data are as of March 31, 1983. 2. The Bernie/Malden banking market is defined as southern Stoddard County, northern Dunklin County and western New Madrid February 23, 1984 County, all in Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 229 control $33.3 million in deposits, representing 33.1 cause by the Board or by the Federal Reserve Bank of percent of the deposits of commercial banks in the St. Louis acting pursuant to delegated authority. market. Together, the three banks hold 72.4 percent of By order of the Board of Governors, effective the deposits in commercial banks in the market. February 7, 1984. In 1980, when the Belknap/Boeving Group applied for the Board's approval to become a bank holding Voting for this action: Vice Chairman Martin and Govercompany by acquiring Bank, the Board examined the nors Wallich, Partee, Teeters, Rice, and Gramley. Absent competitive effects of the original affiliation of Bank, and not voting: Chairman Volcker. Campbell Bank, and Bernie Bank.3 The Board concluded that the effect of the affiliation was to eliminate JAMES MCAFEE, significant competition that existed prior to the affili- [SEAL] Associate Secretary of the Board ation and to increase the concentration of banking resources within the Bernie/Malden banking market. Accordingly, the application was denied.4 Victoria Bankshares, Inc., In order to eliminate these anticompetitive effects in Victoria, Texas connection with this application, the Waller Group has committed to divest its ownership in Bernie Bank to Order Approving Acquisition of Banks the Belknap/Boeving Group and the Belknap/Boeving Group has committed to divest its ownership in Bank Victoria Bankshares, Inc., Victoria, Texas, a bank to the Waller Group. The proposed divestitures will holding company within the meaning of the Bank occur prior to or concurrent with consummation of the Holding Company Act ('Act"), has applied for approposed transaction. Upon consummation of these proval under section 3(a)(3) of the Act (12 U.S.C. transactions, the Waller Group will not own any bank § 1842(a)(3)) to acquire First State Bank, Poteet, Texas in the market except Bank and will terminate all ("State Bank"), and First National Bank in Pleasandirector/management interlocks with Bernie Bank. ton, Pleasanton, Texas ("National Bank") (collective- The disaffiliation of Bank with Bernie Bank and Camp- ly, "Banks"). bell Bank will allow Bank to compete as an indepen- Notice of the applications, affording opportunity for dent entity and will increase the number of competi- interested persons to submit comments and views, has tors in the market. Accordingly, after considering the been given in accordance with section 3(b) of the Act. proposed divestitures and other facts of record, the The time for filing comments and views has expired, Board concludes that the competitive considerations and the applications and all comments received have are consistent with approval of this application. been considered in light of the factors set forth in The financial and managerial resources and future section 3(c) of the Act (12 U.S.C. § 1842(c)). prospects of Applicant and Bank appear to be general- Applicant is the twelfth largest banking organization ly satisfactory. Considerations relating to convenience in the state, controlling 16 banking subsidiaries with and needs of the community to be served also are aggregate domestic deposits of $809.2 million, repreconsistent with approval of this application. Accord- senting 0.65 percent of statewide deposits.1 As a result ingly, it is the Board's judgment that the proposed of this proposal, Applicant would acquire State Bank acquisition is in the public interest and that the appli- with $13.8 million in deposits, representing 0.01 percation should be approved. cent of statewide deposits, and National Bank with On the basis of the record, the application is ap- $34.1 million in deposits, representing 0.03 percent of proved for the reasons summarized above. The trans- statewide deposits. After consummation, Applicant's action shall not be consummated before the thirtieth share of state banking deposits would increase by 0.04 calendar day following the effective date of this Order percent. Accordingly, consummation of this proposal or later than three months after the effective date of would not have an appreciable effect on the concentrathis Order, unless such period is extended for good tion of commercial banking resources in Texas. Both Banks operate in the Atascosa banking market.2 Applicant is not presently represented in that market. Accordingly, the proposal would not result in 3. In analyzing the competitive effects of a proposal involving the elimination of any existing competition between principals of an applicant who control another banking organization in Applicant and Banks. the same market as the bank to be acquired, the Board considers the competitive effects of the transaction whereby common control of the institutions was established. Mahaska Investment Corporation, 63 FEDERAL RESERVE BULLETIN 579 (1977). 4. Semo Bancshares Corporation, 66 FEDERAL RESERVE BULLE- 1. Banking data are as of December 31, 1982. TIN 509 (1980). 2. The Atascosa market consists of Atascosa County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 Federal Reserve Bulletin • March 1984 National Bank is the largest banking organization in not represent an attempt to evade the antitrust laws or the Atascosa market with 32.7 percent of deposits in the BHC Act. Common control was effected before commercial banks in the market. State Bank is the fifth the Celler-Kefauver Antimerger Act of 1950; before largest banking organization in the market, with 13.2 the enactment of the Bank Merger Act of 1960, which percent of market deposits. The two banks hold com- required regulatory agencies to take competitive facbined deposits representing 45.9 percent of market tors into account in approving proposed mergers, and deposits. before enactment of the Bank Merger Act of 1966, The Atascosa banking market is regarded as highly which clarified the applicability of the antitrust law to concentrated with the four largest banking organiza- bank mergers. tions currently holding 84.3 percent of market depos- The Board also notes the presence of thrift instituits. After consummation, the four largest banking tions in the market which hold approximately 28 organizations would control 97.5 percent of market percent of total market deposits. Although these instideposits. The post merger Herfindahl-Hirschman In- tutions do not at this time exercise full commercial dex would increase by 431 points to 3036. banking powers, they do have a mitigating influence Under section 3(c) of the Act the Board is precluded on the competitive effects of the proposal. from approving any proposed acquisition of a bank Accordingly, after considering the facts of record, that (1) would result in a monopoly, or would be in including the size of the institutions at the time of furtherance of any combination or conspiracy to mo- affiliation and the substantial number of years that the nopolize or attempt to monopolize the business of institutions have been affiliated, the Board has conbanking in any part of the United States; or (2) may cluded that the proposal would have no significant substantially lessen competition or tend to create a adverse effect on existing competition between Banks. monopoly or be in restraint of trade in any banking The Board also has evaluated the proposal in light of market, unless the Board finds that such anticompeti- the Board's proposed guidelines for assessing the tive effects are clearly outweighed by the convenience competitive effects of market extension mergers and and needs of the community to be served. Ordinarily, acquisitions. (47 Federal Register 9017 (1982)). The a proposal of this type involving such a large combined Board notes that the state has numerous large bank share of market deposits would raise significant con- holding companies that may be potential entrants. On cerns regarding the competitive effects of the proposal this basis, the Board concludes that approval of the under this standard. applications would have no significant effect on poten- In recent applications involving affiliated banks in tial competition. the same market, however, the Board has regarded as The financial and managerial resources of Applimitigating factors the small absolute size of the banks cant, its subsidiary banks, and Banks are regarded as at the time of their affiliation, the substantial number generally satisfactory and their prospects appear faof years that the banks have been affiliated, and the vorable. Accordingly, considerations relating to bankexistence of the affiliation before the application of the ing factors are consistent with approval. Considerantitrust laws to bank mergers.3 These factors are ations relating to the convenience and needs of the present in this case. community to be served also are consistent with Banks have been under common ownership since approval of the proposal. 1947. At the time of their original affiliation, the On the basis of the record, the application is apabsolute size of the banks was small (State Bank—$1.3 proved for the reasons summarized above. The transmillion in deposits; National Bank—$2.4 million in action shall not be consummated before the thirtieth deposits). Currently, the banks continue to be among calendar day following the effective date of this Order, the smallest banking organizations in the state. The or later than three months after the effective date of affiliation in this case has existed for 37 years and did this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Dallas, acting pursuant to delegated authority. By order of the Board of Governors, effective February 16, 1984. 3. Texas East BanCorp, Inc., 69 FEDERAL RESERVE BULLETIN 636 Voting for this action: Chairman Volcker and Governors (1983); First Monco Bancshares, Inc., 69 FEDERAL RESERVE BULLE- Wallich, Partee, Teeters, Rice, and Gramley. Absent and not TIN 293 (1983). Although these cases did not involve the transfer of voting: Governor Martin. ownership of a bank to parties that were not already principals of the bank, the Board believes that the rationale of these cases applies in this case as well since the proposed acquisition could be effected by JAMES MCAFEE, the transfer of Banks to a holding company by its current owners, and [SEAL] Associate Secretary of the Board the subsequent sale of the holding company to Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 231 Orders Issued Under Section 4 of Bank Holding Citicorp is the largest commercial banking organiza- Company Act tion in the United States, with total consolidated assets of $134.7 billion.3 Citicorp operates four subsid- Citicorp, iary banks in the U.S. including Citibank, New York, New York, New York New York with total assets of $110.6 billion. There is no evidence that consummation of this proposal would Order Approving Acquisition of an Industrial Bank in result in any undue concentration of resources, con- Tennessee and an Industrial Loan Company in flicts of interests or unsound banking practices. Kentucky that Will Engage in Certain Insurance Citicorp's application to establish an industrial bank Activities in Tennessee4 raises serious concerns relating to undermining the policies of the Act. In 1971, when the Citicorp, New York, New York, a bank holding com- Board approved industrial banking as a permissible pany within the meaning of the Bank Holding Compa- activity under section 4(c)(8), industrial banks and ny Act ("Act") (12 U.S.C. § 1841 et seq.), has applied industrial loan companies, by tradition or by statutory for approval under section 4(c)(8) of the Act constraint, were primarily engaged in consumer fi- (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(1) of the nance activities, which are regarded as both closely Board's Regulation Y (12 CFR § 225.23(a)(l)(49 related to banking and a proper incident thereto. Federal Register 794 (1984)) to establish a de novo However, under Tennessee law, CFSC Tennessee's subsidiary, Citicorp Financial Services Corporation state industrial bank charter gives it the power to (Tennessee), to engage in the activities of an industrial provide many of the products and services that a bank through offices in Madison, Memphis, Nashville commercial bank may provide. Tennessee industrial and Knoxville, Tennessee ("CFSC Tennessee"). Citi- banks may accept time deposits in the form of thrift corp has also applied to establish a separate de novo certificate accounts and make commercial loans. subsidiary, Citicorp Financial Service Corporation Aside from their similar powers, industrial banks and (Kentucky) to engage in the activities of an industrial state-chartered commercial banks in Tennessee are loan company through offices in Lexington and Louis- subject to similar regulatory requirements adminisville, Kentucky ("CFSC Kentucky"). Both CFSC tered by the state bank commissioner. Tennessee Tennessee and CFSC Kentucky propose to make industrial banks that accept deposits must have those consumer and commercial loans, to accept time and deposits insured by the Federal Deposit Insurance savings deposits, to engage in the sale of life and Corporation. Under the Deposit Insurance Flexibility accident and health insurance in connection with ex- Act of 19825 and relevant FDIC regulations, industrial tensions of credit, and to engage in the sale at retail of banks are regarded as "state banks" for purposes of money orders and travelers checks and the sale of the Federal Deposit Insurance Act,6 making industrial consumer oriented financial management courses. banks eligible for FDIC insurance. Such activities, as qualified by the terms of Citicorp In evaluating Citicorp's application, the Board has proposal, have been determined by the Board to be considered the changing character of industrial banks closely related to banking (12 CFR § 225.25(b)(2),(8) and their newly acquired eligibility for FDIC insurance and (12)).1 as relevant to the public benefits the Board is required Notice of both applications, affording opportunity to assess in all applications brought under section for interested persons to comment, was duly published 4(c)(8) of the Act. The Board believes that the expand- (48 Federal Register 44110 (1983)). The time for filing ing powers of industrial banks and their ability to comments and views has expired and the Board has obtain FDIC insurance blurs the distinction between considered the applications and all comments received industrial banks and commercial banks and presents in light of the factors set forth in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)).2 3. Banking data are as of December 30, 1983. 4. Industrial loan companies in Kentucky do not appear to be eligible for FDIC insurance, nor has Citicorp applied for such insurance. Therefore, the Kentucky acquisition does not raise the same 1. The provision of consumer-oriented financial management issues as that in Tennessee, where State law requires FDIC insurance courses was found by order to be closely related to banking. Citicorp, for the deposits held by industrial banks. Tenn. Code Ann. § 45-5-605 65 FEDERAL RESERVE BULLETIN 265 (1979). (1983). 2. The comments of First Tennessee National Corporation, Mem- 5. Public Law No. 97-320; 96 Stat. 1969 (1982); 12 U.S.C. phis, Tennessee, were considered although received after the close of § 1813(a). the comment period. 6. 64 Stat. 873 (1950); 12 U.S.C. § 1811 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 Federal Reserve Bulletin • March 1984 the potential for undermining the policies of the Act. ciently to allow approval of this application. The On balance, however, the Board finds that denial is Board has relied on the fact that CFSC Kentucky and not warranted in this case. CFSC Tennessee have committed to avoid offering In considering this issue, the Board is constrained any transaction accounts, thereby removing an imporby the provisions of the Bank Holding Company Act tant characteristic of bank status. In this regard, the defining a bank as an institution which both takes Board conditions its order to require that Citicorp not demand deposits and makes commercial loans. use sweep accounts or tandem operations between (12 U.S.C. § 1841(c)). In its recent expanded definition CFSC Kentucky or CFSC Tennessee and any other of of that term (12 CFR § 225.2(a)(1)), the Board acted its subsidiaries or other financial institutions to offer as to bring within the scope of the Act those institutions a package the demand deposit and commercial lending that the Board believes, in accordance with the Act's services that define a bank under the Act. legislative history, Congress intended to encompass Based upon the foregoing and all the facts of record, within the term bank and to subject them to its the Board has determined that the balance of public limitations on conflicts of interests, concentration of interest factors it is required to consider under section resources and excessive risk. 4(c)(8) is favorable. Accordingly, the applications are The industrial bank that Citicorp proposes to ac- hereby approved. This determination is subject to the quire in this case would not be a bank within the scope conditions set forth in this order with respect to of this expanded definition, because it will not accept operations in tandem with any other Citicorp subsiddemand deposits, including transaction accounts. iary or any other financial institution and the condi- Consequently, the Board believes that it would be tions set forth in section 225.23(b) of Regulation Y inappropriate to treat this institution as a bank subject (12 CFR § 225.23(b)). The approval is also subject to to the limitation on interstate acquisitions contained in the Board's authority to require modification or termisection 3(d) of the Act. Nevertheless, the Board nation of the activities of the holding company or any believes that industrial banks exercising the power to of its subsidiaries as the Board finds necessary to take federally insured deposits, make commercial assure compliance with the provisions and purposes of loans and perform other banking functions should be the Act and the Board's regulations and orders issued subject to the policies established by Congress for thereunder, or to prevent evasion thereof. banks as contained in the Bank Holding Company Act. These transactions shall not be consummated later Legislation proposed by the Board and others that is than three months after the effective date of this now pending before Congress would accomplish this Order, unless such period is extended for good cause objective. The recent acquisitions of industrial banks by the Board, or by the Federal Reserve Bank of New and nonbank banks by securities, insurance, and retail York, pursuant to delegated authority. firms, as well as by bank holding companies, and the By order of the Board of Governors, effective exclusion of these acquisitions from a broadened defi- February 7, 1984. nition of the term bank, indicates that Congressional action is urgently needed in order to assure mainte- Voting for this action: Vice Chairman Martin and Governance of the policies of the Act, including those on nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker. Governor Wallich abconcentration of resources which are inherent in the stained from voting on the insurance portion of these applicalimitations on interstate banking. tions. In reaching this determination, the Board has given JAMES MCAFEE, serious consideration to the probable efficacy of a [SEAL] Associate Secretary of the Board decision to limit further the type of industrial banking that is currently permissible under section 4(c)(8) of the Act. Any action that would restrict the acquisition Citizens Corporation, of industrial banks by bank holding companies would Providence, Rhode Island not limit the use of industrial banks by commercial enterprises as a device for engaging in banking, be- Order Approving Acquisition of Shares in MARLA, cause commercial enterprises that acquire such indus- Inc. trial banks would not be subject to the Act. Accordingly, it would be ineffective and would not further the Citizens Corporation, Providence, Rhode Island, a policy objectives of the Act to impose a competitive bank holding company within the meaning of the Bank limitation only on bank holding companies. Holding Company Act ("Act"), has applied for the In addition, the Board has determined that certain Board's approval pursuant to section 4(c)(8) of the Act limitations that it is placing on Citicorp's industrial (12 U.S.C. § 1843(c)(8)) and section 225.4(b) of the bank activities mitigate the Board's concerns suffi- Board's Regulation Y (12 CFR § 225.4(b)) to acquire Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 233 80 percent of the voting shares of MARLA, Inc., benefits to the public, such as greater convenience, Atlanta, Georgia ("MARLA"), a de novo joint ven- increased competition, or gains in efficiency, that ture with The Money Store, Inc., Springfield, New outweigh possible adverse effects, such as undue Jersey ("TMS"). TMS would hold 20 percent of the concentration of resources, decreased or unfair comvoting shares of MARLA. MARLA would engage in petition, conflicts of interests, or unsound banking the origination, sale, and servicing of mortgage loans practices." and other consumer finance loans and would act as This proposal involves a de novo acquisition. Noragent for the sale of credit life and credit accident and mally, consummation of such a transaction would health insurance. The Board has determined each of have no adverse effects upon either existing or potenthese activities to be closely related to banking tial competition. However, since the proposal involves (12 CFR § 225.4(a)(1), (3), and (9)). a joint venture between a bank holding company and a Notice of the application, affording opportunity for nonbanking company, the Board has analyzed the interested persons to submit comments on the public proposal with respect to its effects on existing and interest factors, has been duly published (48 Federal potential competition between Applicant and TMS in Register 52,355). The time for filing comments and the relevant markets for mortgage banking and conviews has expired, and the Board has considered the sumer financing.4 application and all comments received in light of the Although both Applicant and TMS currently engage public interest factors set forth in section 4(c)(8) of the in the activities proposed for MARLA, neither TMS Act. nor Applicant (or its parent organization) currently Applicant is a subsidiary of Citizens Savings Bank, operates in Georgia. Consummation of the proposed Providence, Rhode Island ("Savings Bank"), an transaction thus would not eliminate any existing FDIC-insured mutual savings bank.1 Considered as a competition between Applicant and TMS. The propossingle organization, Applicant and Savings Bank con- al would not have a significant effect on probable trol aggregate deposits of approximately $1.0 billion2 future competition in mortgage banking and consumer and constitute the fourth largest depository organiza- finance markets in Georgia, since these markets are tion in Rhode Island. Both Applicant and Savings not highly concentrated and there are numerous poten- Bank currently make first and second mortgage loans tial entrants into the markets. and secured and unsecured personal loans. The financial and managerial resources and future TMS, with total assets of approximately $101.9 prospects of Applicant, Savings Bank, and TMS are million, engages through numerous subsidiaries in consistent with approval of this application. Considermaking and packaging second mortgage loans and ations relating to the convenience and needs of the selling such loans to banks and other lenders. The communities to be served also are consistent with company operates in 11 states3 and the District of approval. Consummation of the transaction will give Columbia. While TMS does not directly conduct oper- residents of Georgia access to a new source of conations in Georgia, it holds approximately $500,000 in sumer financing and mortgage loans. In addition, it Georgia mortgages purchased in the secondary mort- appears that the de novo nature of this proposal will gage market. These purchased mortgages represent result in increased competition in the relevant market. only 0.7 percent of TMS' total receivables of $89.4 There is no evidence in the record to indicate that million. consummation of the proposed joint venture would MARLA will do business under the name of "The result in undue concentration of resources, conflicts of Money Store/Georgia" or a similar name. MARLA interests, unsound banking practices, or other adverse will initially operate from one office in Atlanta, and the effects on the public interest. Based on the foregoing geographic area served will be the state of Georgia. and other considerations reflected in the record, the Section 4(c)(8) of the Act requires the Board, in Board concludes that the balance of public interest connection with every application to engage in a factors that it must consider under section 4(c)(8) of nonbanking activity, to consider whether performance the Act is favorable. of a nonbanking activity by a particular bank holding company "... can reasonably be expected to produce 4. The Board has previously expressed concern about the potential for undue concentration of resources or other adverse effects that may result from the combination in a joint venture of banking and nonbanking institutions. See Deutsche Bank AG, 67 FEDERAL RE- 1. Savings Bank is exempt from bank holding company status SERVE BULLETIN 449 (1981); BankAmerica Corporation, 60 FEDERAL under section 2(a)(5)(F) of the Act (12 U.S.C. § 1841(a)(5)(F)). RESERVE BULLETIN 517 (1974). In this case, however, there appears 2. All financial data are as of June 30, 1983. to be no basis for such concerns since both co-venturers are of 3. California, Connecticut, Delaware, Florida, Maryland, Massa- comparatively modest size, and all activities of the nonbanking cochusetts, New Hampshire, New Jersey, New York, Pennsylvania, venturer, TMS, have been determined to be closely related to banking and Virginia. under section 225.4(a) of Regulation Y. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 Federal Reserve Bulletin • March 1984 Accordingly, the application is approved. This de- considered the application and all comments received termination is subject to the conditions set forth in in light of the factors set forth in section 4(c)(8) of the section 225.4(c) of Regulation Y and to the Board's Act (12 U.S.C. § 1843(c)(8)). authority to require such modification or termination Mellon is the largest commercial banking organizaof such activities as the Board finds necessary to tion in Pennsylvania, with total consolidated assets of assure compliance with the provisions and purposes of $26 billion.1 Mellon operates four subsidiary banks the Act, and the Board's regulations and orders issued with total deposits of $15.8 billion. Among Mellon's thereunder, or to prevent evasion thereof. nonbank subsidiaries are two industrial banks that, The proposed activities shall be commenced not like Northglenn, operate in the Denver market, which later than three months after the effective date of this contains 68 industrial banks with total deposits of Order, unless such period is extended for good cause $199.2 million.2 Considerations under section 4(c)(8) by the Board or by the Federal Reserve Bank of relating to concentration of resources are consistent Boston, pursuant to delegated authority. with approval. Also, there is no evidence that consum- By order of the Board of Governors, effective mation of this proposal would result in any conflicts of February 2, 1984. interest or unsound banking practices. The acquisition of Northglenn by Mellon raises Voting for this action: Chairman Volcker and Governors serious concerns relating to undermining the policies Martin, Partee, Teeters, Rice, and Gramley. Abstaining from of the Act. In 1971, when the Board approved industrithis action: Governor Wallich. al banking as a permissible activity under section 4(c)(8), industrial banks and industrial loan companies, JAMES MCAFEE, by tradition or by statutory constraint, were primarily [SEAL] Associate Secretary of the Board engaged in consumer finance activities, which are regarded as both closely related to banking and a proper incident thereto. However, under Colorado Mellon National Corporation, law, Northglenn's state industrial bank charter gives it Pittsburgh, Pennsylvania the power to provide many of the products and services that a commercial bank may provide. Colorado industrial banks may accept time deposits, offer NOW Order Approving Acquisition of an Industrial Bank and other thrift accounts and make commercial loans. and Engaging in Certain Insurance Activities Aside from their similar powers, industrial banks and Mellon National Corporation, Pittsburgh, Pennsylva- state-chartered commercial banks in this state are nia ("Mellon"), a bank holding company within the subject to similar regulatory requirements adminismeaning of the Bank Holding Company Act ("Act") tered by the state bank commissioner. Colorado indus- (12 U.S.C. § 1841 et seq.), has applied for approval trial banks that offer deposits must have those deposits under section 4(c)(s) of the Act (12 U.S.C. insured by a state or federal agency. Under the Depos- § 1843(c)(8)) and section 225.23(a)(2) of the Board's it Insurance Flexibility Act of 19823 and relevant Regulation Y (12 CFR § 225.23(a)(2), 49 Federal FDIC regulations, industrial banks are regarded as Register 794 (1984)), to acquire, through its subsidiary, "state banks" for purposes of the Federal Deposit Mellon Financial Services Corporation, Northglenn Insurance Act,4 making industrial banks eligible for Industrial Bank, Inc., Northglenn, Colorado FDIC insurance. ("Northglenn"), a company that engages in the activi- In evaluating Mellon's application, the Board has ties of an industrial bank, including making consumer considered the changing character of industrial banks and commercial loans and accepting time and savings and their newly acquired eligibility for FDIC insurance deposits from consumers and small businesses. Mellon as relevant to the public benefits the Board is required has also applied to engage, through Northglenn, in to assess in all applications brought under section the sale of life and accident and health insurance 4(c)(8) of the Act. The Board believes that the expandin connection with extensions of credit by North- ing powers of industrial banks and their ability to glenn. Such activities, as qualified by the terms of obtain FDIC insurance blur the distinction between Mellon's proposal, have been determined by the industrial banks and commercial banks and present the Board to be closely related to banking (12 CFR § 225.25(b)(2), (8)). 1. Banking data are as of September 30, 1983. Notice of the application, affording opportunity for 2. Industrial Bank Savings Guaranty Corporation of Colorado interested persons to comment, was duly published (48 (Data as of December 31, 1982). 3. Public Law No. 97-320; 96 Stat. 1969 (1982); 12 U.S.C. Federal Register 49381 (1983)). The time for filing § 1813(a). comments and views has expired and the Board has 4. 64 Stat. 873 (1950); 12 U.S.C. § 1811 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 235 potential for undermining the policies of the Act. On activities mitigate the Board's concerns sufficiently to balance, however, the Board finds that denial is not allow approval of this application. The Board has warranted in this case. relied on the fact that Northglenn has committed to In considering this issue, the Board is constrained avoid offering any transaction account, thereby reby the provisions of the Bank Holding Company Act moving an important characteristic of bank status. In defining a bank as an institution which both takes this regard, the Board conditions its order to require demand deposits and makes commercial loans. that Mellon not use sweep accounts or tandem opera- (12 U.S.C. § 1841(c)). In its recent expanded definition tions between Mellon Financial Services Corporation of that term (12 CFR § 225.2(a)(1)), the Board acted to and any other of its subsidiaries or other financial bring within scope of the Act those institutions that the institutions to offer as a package the demand deposit Board believes, in accordance with the Act's legisla- and commercial lending services that define a bank tive history, Congress intended to encompass within under the Act. the term bank and to subject them to its limitations on Based upon the foregoing and all the facts of record, conflicts of interests, concentration of resources and the Board has determined that the balance of public excessive risk. interest factors it is required to consider under section The industrial bank that Mellon proposes to acquire 4(c)(8) is favorable. Accordingly, the application is in this case would not be a bank within the scope of hereby approved This determination is subject to the this expanded definition, because it will not accept conditions set forth in this order with respect to demand deposits, including transaction accounts. operations in tandem with any other Mellon subsidiary Consequently, the Board believes that it would be or any other financial institution and the conditions set inappropriate to treat this institution as a bank subject forth in section 225.23(b) of Regulation Y (12 CFR to the limitation on interstate acquisitions contained in § 225.23(b)). The approval is also subject to the section 3(d) of the Act. Nevertheless, the Board Board's authority to require modification or terminabelieves that industrial banks exercising the power to tion of the activities of the holding company or any of take federally insured deposits, make commercial its subsidiaries as the Board finds necessary to assure loans and perform other banking functions should be compliance with the provisions and purposes of the Act and the Board's regulations and orders issued subject to the policies established by Congress for thereunder, or to prevent evasion thereof. banks that are contained in the Bank Holding Company Act, and legislation proposed by the Board and The transaction shall not be consummated later than others that is now pending before Congress would three months after the effective date of this Order, accomplish this objective. The recent acquisitions of unless such period is extended for good cause by the industrial banks and nonbank banks by securities, Board, or by the Federal Reserve Bank of Cleveland, insurance, and retail firms, as well as by bank holding pursuant to delegated authority. companies, and the exclusion of these acquisitions By order of the Board of Governors, effective from a broadened definition of the term bank, indicate February 6, 1984. that Congressional action is urgently needed in order to assure maintenance of the policies of the Act, Voting for this action: Vice Chairman Martin and Goverincluding those on concentration of resources, which nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker. Governor Wallich abare inherent in the limitations on interstate banking. stained from voting on the insurance portion of this applica- In reaching this determination, the Board has given tion. serious consideration to the probable efficacy of a JAMES MCAFEE, decision to limit further the type of industrial banking [SEAL] Associate Secretary of the Board that is currently permissible under section 4(c)(8) of the Act. Any action that would restrict the acquisition of industrial banks by bank holding companies would Norwest Corporation, not limit the use of industrial banks by commercial Minneapolis, Minnesota enterprises as a device for engaging in banking, because commercial enterprises that acquire such indus- Order Approving Application to Engage De Novo in trial banks would not be subject to the Bank Holding the Sale of Property and Casualty Insurance Related Company Act. Accordingly, in this instance, it would to Extensions of Credit by Finance Company be ineffective and would not further the policy objec- Subsidiaries tives of the Act to impose a competitive limitation only on bank holding companies. Norwest Corporation, Minneapolis, Minnesota, a In addition, the Board has determined that certain bank holding company within the meaning of the Bank limitations that it is placing on Mellon's industrial bank Holding Company Act of 1956, as amended (12 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 Federal Reserve Bulletin • March 1984 § 1841 et seq.) (the "Act"), has applied under section Board approval prior to 1971 to engage in insurance 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section agency activities to continue to engage in such activi- 225.23(a)(1) of the Board's Regulation Y (12 CFR ties. Unless Norwest's proposal qualifies under this 225.23(a)(1)), 49 Federal Register 974 (1984)) for ap- exemption or some other exemption in section 4(c)(8), proval to engage de novo, through its subsidiaries, the sale of property and casualty insurance, even Norwest Financial Massachusetts, Norwest Financial where related to extensions of credit, is not currently a Maryland, Inc., and Norwest Financial Leasing, Inc., permissible activity for bank holding companies. in the sale of property and casualty insurance in Norwest has been engaged in general insurance connection with extensions of credit by these subsid- agency operations since 1929. In 1959, Norwest reiaries. ceived approval from the Board under the provisions Notice of the application affording interested per- of the Bank Holding Company Act of 1956, to retain sons an opportunity to submit comments, was duly eight insurance agencies which Norwest had organized published (48 Federal Register 56850 (1983)). The time into two subsidiaries.2 Both of these subsidiaries enfor filing comments has expired and the Board has gaged in general insurance agency activities, including considered this application and all comments received the sale of property and casualty insurance to customin light of the public interest factors set forth in section ers of Norwest and to the general public. Norwest has 4(c)(8) of the Act. been engaged in general insurance agency activities on Norwest, with total consolidated assets of $19.9 a continuous basis since receiving Board approval in billion,1 is one of the two largest commercial banking 1959, and Norwest is one of 16 active companies that organizations in Minnesota. Norwest controls 86 sub- qualify for exemption G. sidiary banks in seven states in the Midwest. In Norwest now seeks approval to sell property and addition, Norwest has a number of subsidiaries en- casualty insurance related to extensions of credit by its gaged in nonbanking activities, including Norwest Massachusetts and Maryland subsidiaries. Norwest Financial Services, Inc., a consumer finance compa- did not sell such insurance, or indeed any insurance, in ny, which also engages in the sale of credit life and Massachusetts and Maryland in 1971.3 In intepreting accident and health insurance, lease financing, the exemption G of section 4(c)(8), the Board must decide reinsurance of credit-related insurance and data proc- whether Norwest is authorized to engage in insurance essing activities through offices in 37 states. Norwest agency activities in states where it was not operating in Financial Services, through its Massachusetts subsid- 1971. iary, Norwest Financial Massachusetts ("NFMass"), The Board notes that exemption D of section 4(c)(8) operates 12 consumer finance company offices in also creates certain grandfather rights for bank holding Massachusetts. It also operates 23 consumer finance companies engaged in insurance agency activities on company offices in Maryland through its Maryland May 1, 1982. Such companies would be permitted to subsidiaries Norwest Financial Maryland, Inc. expand their existing insurance agency activities geo- ("NFMd"), and Norwest Financial Leasing, Inc. graphically at least to new locations in the state where ("NFL"). These subsidiaries also engage in the sale of the bank holding company has its principal place of credit life and credit accident and health insurance. business or to adjacent states or to states where the Norwest proposes to expand these insurance activities insurance agency activities were already being conin Maryland and Massachusetts to include the sale of ducted. Since by definition companies engaged in property and casualty insurance related to extensions insurance agency activities prior to 1971 would qualify of credit by NFMass, NFMd and NFL. for the 1982 grandfather provision contained in exemp- Title VI of the Garn-St Germain Act of 1982 amend- tion D, there would appear to be no purpose to ed section 4(c)(8) of the Act to specify that insurance exemption G unless it was to confer an exemption that agency activities are not "closely related to banking" is broader in scope than that in exemption D and to and thus are not permissible activities for bank holding permit, as a minimum, insurance agency activities companies, unless the activities are included within without restriction on location. one of seven specific exemptions (A through G) con- This interpretation is consistent with the terms of tained in section 4(c)(8). Norwest claims it is autho- exemption G, which contains no qualifications or rized to engage in the sale of credit-related property and casualty insurance under exemption G, which permits those bank holding companies that received 2. 45 FEDERAL RESERVE BULLETIN 963 (1959). 3. Norwest began selling credit life and credit accident and health insurance in Massachusetts in 1982 (see 68 FEDERAL RESERVE BULLE- 1. All banking data are as of December 31, 1983, unless otherwise TIN 519 (1982)) and in Maryland in 1983 (see the letter of the Federal indicated. Reserve Bank of Minneapolis of August 16, 1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 237 restrictions on the insurance activities of bank holding provisions and purposes of the Act and the Board's companies approved prior to 1971. Accordingly, the regulations and orders issued thereunder, or to pre- Board finds that exemption G authorizes the sale of vent evasion thereof. credit-related property and casualty insurance by Nor- The proposal shall be consummated not later than west in Massachusetts and Maryland. three months after the effective date of this Order, The Board does not have to reach the issue of unless such period is extended for good cause by the whether exemption G permits as closely related to Board or by the Federal Reserve Bank of Minneapolis, banking the sale of kinds or types of insurance that pursuant to delegated authority. Norwest did not offer in 1971. The Order of the Board By order of the Board of Governors, effective and the decision of the Hearing Officer in 19594 make February 28, 1984. it clear that Norwest engaged in the sale of property and casualty insurance. Voting for this action: Chairman Volcker and Governors There is evidence in the record indicating that Martin, Partee, Teeters, and Gramley. Abstaining from this action: Governor Wallich. Absent and not voting: Governor consummation of Norwest's proposal would not result Rice. in any undue concentration of resources, adverse effects on competition, conflicts of interests, unsound WILLIAM W. WILES, banking practices, or any other adverse effects. More- [SEAL] Secretary of the Board over, the Board has determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) of the Act is favorable. Nor- PNC Financial Corp, west will provide an additional source for property and Pittsburgh, Pennsylvania casualty insurance that will be particularly convenient for its loan customers. It will enter the market de novo Order Approving Acquisition of Data Processing and it has indicated that it will act affirmatively to Subsidiary ensure compliance with all laws and regulations prohibiting tie-ins. PNC Financial Corp, Pittsburgh, Pennsylvania, a bank The Board has also reviewed the Massachusetts holding company within the meaning of the Bank statutes that restrict the ability of financial institutions Holding Company Act of 1956, as amended (12 U.S.C. to obtain a license to sell insurance.5 It would appear § 1841 et seq.), has applied for approval under section that Norwest's subsidiary, NFMass, has already ob- 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) to acquire 51 tained such a license and the state law licensing percent of the voting shares of LeMans Group, Ltd., restrictions are inapplicable to this expansion of insur- Lancaster, Pennsylvania ("Company"), a company ance agency activities. Moreover, the Board's approvengaged in selling integrated mini-computer systems al would not permit any activity in contravention of for the leasing of personal property by banks and other state law since Norwest must still meet any applicable financial institutions. Such activities have been deterlicensing requirements in a separate state proceeding. mined by the Board to be closely related to banking Nevertheless, the Board's review of the licensing (12 CFR § 225.4(a)(6)(i) and (8)). restrictions indicates that they do not apply to sales Notice of the application, affording opportunity for finance companies, such as NFMass, or to bank interested Persons to submit comments, has been duly holding companies, such as Norwest, that control published (48 Federal Register 5177 (1983)). The time subsidiary banks located in states other than the New for filing comments has expired, and the application England states. and all comments received have been considered in Accordingly, oased upon tne foregoing and other light of the public interest factors set forth in section facts of record, the application is hereby approved. 4(c)(8) of the Act. This determination is subject to the conditions set Applicant, the second largest commercial banking forth in section 225.23(b) of Regulation Y (12 CFR organization in Pennsylvania, controlling four banking § 225.23(b)) and to the Board's authority to require subsidiaries with aggregate domestic deposits of $7.7 such modification or termination of the activities of a billion,1 has applied to acquire Company and thereby holding company or any of its subsidiaries as the engage in the activities described above. In connection Board finds necessary to assure compliance with the with this application, the Secretary of the Board has 4. 45 FEDERAL RESERVE BULLETIN 963. 5. Massachusetts General Law Annotated, Chapter 175, Section 1. Deposit data are as of December 31, 1982, adjusted for Appli- 174 E (1983). cant's acquisitions through January 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 Federal Reserve Bulletin • March 1984 taken into consideration whether the activities to be nonaffiliated persons, of financial futures contracts performed by Applicant can reasonably be expected to including futures on securities issued or guaranteed by produce benefits to the public that outweigh possible the U.S. government and its agencies and on U.S. and adverse effects. Having considered the record of this foreign money market instruments; and the execution application in light of the factors contained in the Act, and clearance of options on these financial futures the Secretary of the Board has determined that the contracts on behalf of nonaffiliated persons; acting as a balance of the public interest factors under section broker and dealer on behalf of nonaffiliated persons 4(c)(8) is favorable. with respect to securities issued or guaranteed by the On the basis of these considerations, the application U.S. government and its agencies; and acting as a is approved. This determination is subject to the broker with respect to options on securities issued or conditions set forth in section 225.4(c) of Regulation Y guaranteed by the U.S. government and its agencies and to the Board's authority to require such modifica- and with respect to options on U.S. and foreign money tion or termination of the activities of a bank holding market instruments. In addition, Mortgage Services company or any of its subsidiaries as the Board finds proposes to offer incidental investment advice in connecessary to assure compliance with the provisions nection with its FCM activities. and purposes of the Act and the Board's regulations Notice of the application, affording interested perand orders issued thereunder, or to prevent evasions sons an opportunity to submit comments on the relathereof. tion of the proposed activities to banking and on the The transaction shall not be consummated later than balance of the public interest factors regarding the three months after the effective date of this order, application has been duly published (48 Federal Regisunless such period is extended for good cause by the ter 23910 (May 27, 1983)). The time for filing com- Board or by the Federal Reserve Bank of Cleveland, ments has expired and the Board has considered the acting pursuant to delegated authority. application and all comments received in light of the By order of the Secretary of the Board, acting public interest factors set forth in section 4(c)(8) of the pursuant to delegated authority for the Board of Gov- BHC Act.2 ernors, effective February 10, 1984. Applicant is a bank holding company by virtue of its control of Security Pacific National Bank, Los Ange- JAMES MCAFEE, les, California ("Bank"). Bank holds deposits of ap- [SEAL] Associate Secretary of the Board proximately $26.0 billion3 and is the second largest banking organization in California. Applicant, through its subsidiaries, engages in various permissible non- Security Pacific Corporation, banking activities. Applicant's financial and manageri- Los Angeles, California al resources, and in particular, its capitalization are adequate for it to engage in additional nonbanking Order Approving Application to Engage in Certain activities. Futures Commission Merchant and Broker/Dealer In order to approve an application submitted pursu- Activities ant to section 4(c)(8) of the BHC Act, the Board is first required to determine that the proposed activities are Security Pacific Corporation, Los Angeles, California, closely related to banking or managing or controlling a bank holding company within the meaning of the banks. The Board has determined previously that Bank Holding Company Act ("BHC Act"), has ap- certain FCM activities are closely related to banking: plied for the Board's approval under section 4(c)(8) of the execution and clearance of futures contracts in the BHC Act (12 U.S.C. § 1843(c)(8)) and section bullion, foreign exchange, U.S. government and agen- 225.4(b)(2) of the Board's Regulation Y (12 CFR cy securities, and money market instruments,4 and the § 225.4(b)(2)) to engage de novo through its wholly- execution and clearance of options on futures conowned indirect subsidiary, Security Pacific Mortgage tracts in gold bullion and U.S. government securities.5 Services, Inc.1 ("Mortgage Services"), in the following activities: the execution and clearance on behalf of 2. The Dealer Bank Association submitted a comment in favor of the proposal. 3. All banking data are as of June 30, 1983. 1. Security Pacific Mortgage Services, Inc. is a wholly-owned 4. E.g., J.P. Morgan & Company, Incorporated, 68 FEDERAL direct subsidiary of Security Pacific Mortgage Corporation ("Mort- RESERVE BULLETIN 514 (1982); Citicorp, 68 FEDERAL RESERVE gage Corporation") a direct nonbank subsidiary of Applicant engaged BULLETIN 776 (1982). primarily in mortgage banking activities. Mortgage Corporation is the 5. E.g., J.P. Morgan & Company, Incorporated, 69 FEDERAL third largest issuer of GNMA securities in the United States. RESERVE BULLETIN 773 (1983) ("Morgan //"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 239 Applicant's proposal to act as an FCM with respect to mined previously that executing and clearing futures futures contracts on securities issued or guaranteed by on money market instruments is closely related to the U.S. government and its agencies and on U.S. and banking, and Applicant's prior experience in the cash foreign money market instruments is substantially and futures markets for these instruments demonsimilar to proposals to engage in these activities previ- strates that Mortgage Services would have the experously approved by the Board. The record indicates tise to provide the proposed options services with that Applicant, Bank and Mortgage Corporation have respect to these financial futures contracts. Accordbeen active in the cash and futures markets for these ingly, the Board concludes that Mortgage Services' instruments and have the expertise to provide these proposal with respect to options on financial futures services to customers.6 In addition, Mortgage Services contracts is closely related to banking. has developed the requisite controls to monitor cus- Mortgage Services also proposes to engage in brotomer credit risk.7 Thus, the Board has determined kerage activities with respect to options on certain that in the manner proposed, these activities are physicals; i.e., securities issued or guaranteed by the closely related to banking. U.S. Government and its agencies and U.S. and The Board also has determined by order that under- foreign money market instruments.10 Although an opwriting and dealing in certain government securities tion on a physical differs somewhat from a future or an and money market instruments is closely related to option on a future, an option on a physical appears to banking. The Board's finding that the activity is close- serve the same function as these other instruments ly related to banking was premised on the facts that since it offers the investor a means to hedge portfolio national and State member banks are expressly autho- risk. rized by statute to engage in the activity, 12 U.S.C. The Board has previously approved applications to § 24 (Seventh), and that many banks in fact engage in engage in discount securities brokerage for retail custhe activity.8 The Board finds Mortgage Services' tomers with respect to corporate securities and has proposal to broker and deal in government securities is added discount securities brokerage to the list of substantially similar to proposals the Board has previ- permissible nonbanking activities for bank holding ously approved. Accordingly, the Board concludes companies generally.11 As a broker for options on that in the manner proposed, Mortgage Services' physicals, Mortgage Services will act solely as agent proposal to broker and deal in U.S. government and on behalf of nonaffiliated persons for the purchase and agency securities is closely related to banking. sale of such options. The Board notes that a broker of Mortgage Services proposes to engage in several options on U.S. government and agency securities and activities not previously determined by the Board to of options on money market instruments is a securities be closely related to banking. Specifically, Mortgage broker under the securities laws. Moreover, the ser- Services proposes to execute and clear options on vices performed by a broker of options on U.S. futures on U.S. and foreign money market instruments and to broker options on securities issued or guaranteed by the U.S. Government and its agencies and options on money market instruments. 10. Pursuant to an accord between the SEC and the CFTC, options With respect to Applicant's proposal to execute and on securities are considered securities and are regulated by the SEC. The substance of this accord was subsequently adopted by Congress, clear options on futures on U.S. and foreign money Pub. L. No. 97-444, 96 Stat. 2294 (codified as amended at 7 U.S.C. market instruments, the Board has previously deter- § 2(a)) (January 11, 1982) and Pub. L. No. 97-303, 96 Stat. 1409 mined that options on futures are functionally and (codified as amended at 15 U.S.C. § 77b) (October 13, 1982). Thus, Mortgage Services will be required to register as a broker/dealer under operationally similar to a futures contract for the same the Securities Exchange Act of 1934 in connection with its brokering commodity.9 As noted above, the Board has deter- of options on government securities and of options on money market instruments. 11. BankAmerica Corporation, 69 FEDERAL RESERVE BULLETIN 105 (1983). Codified at 12 CFR § 225.4(a)(15). The Board's decision was subsequently upheld by the Court of Appeals in Securities Industry Association v. Board of Governors, 716 F.2d 92 (2nd Cir. 6. Indeed, Mortgage Corporation has used financial futures to 1983). The Board notes that the brokerage activities proposed by reduce the risks associated with its mortgage banking activities since Mortgage Services are similar to those the Board has previously such futures were first traded in 1975. approved. While the Banking Act of 1933, commonly known as the 7. Pursuant to a formal service agreement, Mortgage Corporation Glass-Steagall Act, prohibits a commercial bank from engaging in or will provide certain services to Mortgage Services, including the being affiliated with a firm engaged in certain securities activities, following; assessing customer credit risk, monitoring customer posi- Courts have concluded that a commercial bank may act as a securities tions and margin accounts and providing administrative and data broker, i.e., execute purchases and sales of securities as agent for processing services. These services will assist Mortgage Services in customers. Accordingly, the Board does not believe Mortgage Serestablishing appropriate position limits for customers. vices' proposed brokerage activities with respect to options on 8. 41 Federal Register 47083 (1976); 43 Federal Register 5382 securities issued or guaranteed by the U.S. government and its agencies and money market instruments would violate the prohibi- (1978). tions of the Glass-Steagall Act. 9. Morgan II, supra. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 Federal Reserve Bulletin • March 1984 Government and agency securities and on money various types of financial risks and potential conflicts market instruments appear to be similar to those of of interests, and are susceptible to anticompetitive and other brokers. Accordingly, the Board concludes that manipulative practices. In approving proposals to act Mortgage Services' proposal to broker options on as an FCM, the Board has relied in the past on action U.S. Government and agency securities and options taken by Congress to address these types of possible on U.S. and foreign money market instruments is adverse effects through the passage of the Commodity closely related to banking. Exchange Act13 and the creation of the Commodity In addition, Mortgage Services proposes to offer Futures Trading Commission ("CFTC"). The Board incidental investment advice in connection with its has relied also on the regulations adopted by the CFTC FCM activities. Mortgage Services will provide gener- to effectuate the provisions of the Commodity Exal research and advice on market conditions and change Act.14 trading strategies, client account information, recon- The Board has placed particular reliance on the ciliation of trades and communication linkage between following aspects of Applicant's proposal to act as an customers and the exchange floor. These functions FCM. would be performed for Mortgage Services' customers 1. Mortgage Services generally will not trade futures only as part of its FCM services and would not be for its own account except for purposes of hedging offered separately or on a fee basis. The Board has its positions in securities.15 determined previously that the offering of investment 2. Mortgage Services shall not, without the prior advice is incidental to FCM services.12 Mortgage consent of the Board, become a clearing member of Services' proposal to offer advice in connection with any futures or securities exchange whose rules its FCM activities is substantially similar to and con- require the parent corporation of a clearing member sistent with other proposals approved by the Board. to also become a clearing member, unless the re- Based on the foregoing, the Board concludes that the quirement is waived with respect to Applicant. advice Mortgage Services will offer in connection with 3. Mortgage Services has committed that it will, in its FCM activities is incidental to such activities. addition to time-stamping orders of all customers to In order to approve this application, the Board the nearest minute, execute all orders, to the extent is also required to determine that the performance consistent with customers' specifications, in strictly of the proposed activities by Mortgage Services chronological sequence, and that it will execute all "can reasonably be expected to produce benefits to orders with reasonable promptness with due regard the public, such as greater convenience, increased to market conditions. competition, or gains in efficiency, that outweigh 4. Mortgage Services will not extend credit to cuspossible adverse effects, such as undue concentration tomers for the purpose of meeting initial or mainteof resources, decreased or unfair competition, con- nance margin required of customers, subject to the flicts of interests, or unsound banking practices" limited exception of posting margin on behalf of (12 U.S.C. § 1843(c)(8)). customers in advance of prompt reimbursement. Consummation of Applicant's proposal would pro- 5. Mortgage Services has and will maintain a capitalvide added convenience to those clients of Applicant ization fully adequate to meet its own commitments and its subsidiaries that trade in the cash, forward and and commitments of its customers, including its futures markets for these instruments. The Board affiliates. expects that the de novo entry of Mortgage Services into the market for these services would increase the level of competition among providers of these services already in operation. Accordingly, the Board con- 13. 7 U.S.C. §§ 1-24. 14. 17 CFR § 1.20, 1.25, 1.39 and §§ 1.10-18. cludes that the performance of the proposed activities 15. The Board notes that Mortgage Services may trade for its own by Mortgage Services can reasonably be expected to account to a limited extent and solely for purposes of hedging its produce benefits to the public. portfolio of U.S. Government and government-backed securities. In order to insure that Mortgage Services so limits its trading, however, The Board has considered several issues with re- and does not engage in speculative transactions, the Board expects spect to possible adverse effects. The Board recog- Mortgage Services to comply with the Board's Policy Statement Regarding the Use of Futures, Forward and Standby Contracts, nizes that the activities of executing futures contracts 12 CFR § 225.142. Thus, the policy objectives of its trading must be and options with regard to futures contracts involve specific enough to outline permissible risk-reducing contract strategies and their relationship to Mortgage Services' other business activities, and sufficiently detailed to permit internal auditors and examiners to determine whether operations personnel have acted in accordance with authorized objectives. Operating personnel are expected to be able to describe and document in detail how the contract 12. E.g., Citicorp, 68 FEDERAL RESERVE BULLETIN 776, 778 positions they have taken contribute to the attainment of Mortgage (1982). Services' stated objectives. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 241 In addition, in evaluating Applicant's proposal to act The transaction shall be made not later than three as a broker of options on U.S. Government and months after the effective date of this Order, unless government-backed securities and options on U.S. such period is extended for good cause by the Board or and foreign money market instruments, the Board has by the Federal Reserve Bank of San Francisco pursutaken into account and has relied upon the regulatory ant to delegated authority. framework established pursuant to law by the SEC for By order of the Board of Governors, effective such trading as well as other prudential consider- December 8, 1983. ations. The Board has considered also the potential for Voting for this action: Vice Chairman Martin and Goveradverse effects associated with Mortgage Services' nors Wallich, Partee, Rice, and Gramley. Absent and not voting: Chairman Volcker and Governor Teeters. proposed broker/dealer activities with regard to U.S. government securities. The Board notes that as a nonbank subsidiary of Applicant, Mortgage Services WILLIAM W. WILES, would be engaging in underwriting and dealing in [SEAL] Secretary of the Board government securities without being subject to many of the rules that currently apply to Bank's conduct of This Order, issued February 29, 1984, corrects an the activity and the resulting potential for unsound Order issued on December 8, 1983. banking practices. Accordingly, the Board expects that Mortgage Services will conduct the proposed activities subject to the same rules and prudential limitations under which Orders Issued Under Section 3 and 4 of Bank Bank would conduct such activities.16 Any breach of Holding Company Act these restrictions by Mortgage Services would constitute an unsafe or unsound banking practice that could Barnett Banks of Florida, Inc., be the subject of formal supervisory action by the Jacksonville, Florida Board. There is no evidence in the record that consumma- Order Approving Acquisition of a Bank Holding tion of the proposal would result in any effects that Company would be adverse to the public interest. Based upon a consideration of all the relevant facts, Barnett Banks of Florida, Inc., Jacksonville, Florida, the Board concludes that the balance of the public a bank holding company within the meaning of the interest factors that the Board is required to consider Bank Holding Company Act, has applied for the under section 4(c)(8) is favorable. Accordingly, the Board's approval under section 3 of the Act (12 U.S.C. application is hereby approved. This determination is § 1842) to acquire the voting shares of Florida Coast subject to the conditions set forth in section 225.4(c) of Banks, Inc., Pompano Beach, Florida ("Florida Regulation Y and to the Board's authority to require Coast"), a bank holding company by virtue of its such modification or termination of the activities of a ownership of Florida Coast Bank, Pompano Beach, bank holding company or any of its subsidiaries as the Florida, and Florida Coast Bank of Palm Beach Coun- Board finds necessary to assure compliance with the ty, West Palm Beach, Florida. Applicant has also provisions and purposes of the Act and the Board's applied for the Board's approval under section 4(c)(8) regulations and orders issued thereunder, or to pre- of the Act (12 U.S.C. § 1843(c)(8)) to acquire Midlanvent evasion thereof. tic/Florida Coast Holdings, Inc., Edison, New Jersey, and its wholly-owned subsidiary, Florida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida, which provides the services of a trust company in Florida. 16. For example, member banks by statute are permitted to under- Notice of the application, affording opportunity for write certain types of public housing and dormitory bonds of states interested persons to submit comments and views has and municipalities, provided that the amount of such securities of a been given in accordance with sections 3 and 4 of the single issuer held by the bank does not exceed ten percent of the bank's capital and surplus. 12 U.S.C. § 24 Seventh. Such securities Act. The time for filing comments and views has are designated "Type II" securities in regulations of the Comptroller expired and the Board has considered the applications of the Currency. 12 CFR § 1.3(a). Mortgage Services should not underwrite, deal in, or hold Type II securities by any issuer in and all comments received, including comments subamounts that would not be permitted if such activities were conducted mitted on behalf of Florida Coast, in light of the factors by Bank and should not sell securities to trust accounts of affiliated set forth in section 3(c) of the Act and the considerbanks except as permitted by regulations of the Comptroller of the Currency. ations specified in section 4 of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 Federal Reserve Bulletin • March 1984 Applicant, the largest banking organization in Flori- would remain the largest commercial banking organida, controls 33 subsidiary banks with approximately zation in the East Palm Beach banking market, with a $7.2 billion in total deposits, representing approxi- total market share of approximately 20.7 percent of mately 13.2 percent of the total deposits in commercial deposits in commercial banks in the market. banks in Florida.1 Florida Coast is the sixteenth larg- Consummation of the proposed transaction would est banking organization in Florida, with two subsid- eliminate some existing competition in the East Palm iary banks controlling approximately $500 million in Beach banking market. However, the East Palm total deposits, representing 0.9 percent of total depos- Beach banking market is relatively unconcentrated, its in commercial banking organizations in Florida. with a four-firm concentration ratio of 50.1 percent Upon acquisition of Florida Coast, Applicant would and a current HHI equal to 931. Upon consummation continue to be the largest banking organization in of the proposed transaction, there would remain 20 Florida and would increase its share of total commer- commercial banking organizations competing in the cial bank deposits in Florida to 14.1 percent. market, the four-firm concentration ratio would in- The banking subsidiaries of Florida Coast operate in crease to 54.7 percent, and the HHI would increase by the Miami-Fort Lauderdale banking market2 and the 148 points to 1079. Accordingly, consummation of the East Palm Beach banking market.3 Applicant also proposed transaction would not significantly reduce operates subsidiary banks in these markets. In the competition or increase the concentration of resources Miami-Fort Lauderdale banking market, Applicant is in the East Palm Beach banking market.5 the second largest commercial banking organization Moreover, in view of the significant expansion of with 10.5 percent of the total deposits in commercial the commercial lending powers of federal thrift institubanks in that market. Florida Coast is the fourteenth tions authorized in the Garn-St Germain Depository largest commercial banking organization in the Miami- Institutions Act of 1982, the Board has, in a number of Fort Lauderdale banking market and controls 1.8 recent cases, considered the presence and extent of percent of the deposits in commercial banks in that competition of thrift institutions in the relevant bankmarket. Upon consummation of the proposal, Appli- ing market as a mitigating factor.6 There are 25 savings cant would remain the second largest commercial and loan associations and savings banks in the East banking organization in the Miami-Fort Lauderdale Palm Beach banking market, including the first, secbanking market and would control approximately 12.3 ond, third, fifth and sixth largest depository institupercent of the commercial bank deposits in that mar- tions in the market. Together, thrift institutions hold ket. The Miami-Fort Lauderdale banking market is not approximately $4.6 billion in total market deposits, concentrated and would remain unconcentrated, with representing approximately 60.1 percent of the total a Hirshmann-Herfindahl Index of 693, upon consum- deposits in commercial banks and thrift institutions in mation of the transaction. the market. The size of thrift institutions in the East Applicant is the largest commercial banking organi- Palm Beach banking market reflects in part the resization in the East Palm Beach banking market, holding dential and consumer nature of this market. In this regard, commercial banks operating in this market approximately $470.4 million in deposits in that market concentrate a significantly higher proportion of their representing approximately 16.1 percent of the total loan portfolio in residential real estate and consumer deposits in commercial banking organizations in that market.4 Florida Coast holds approximately $134.3 million in deposits in the East Palm Beach banking market, representing approximately 4.6 percent of the total market deposits, and is the ninth largest commer- 5. Applicant has provided deposit data as of March 31, 1983, based on a telephone survey of the East Palm Beach banking market cial banking organization in the market. Upon con- conducted by the Florida Bankers Association. The Board believes summation of this proposed transaction, Applicant that the most accurate market data available is the data collected and provided by the FDIC and verified and edited for consistency by the Board, which is reflected in the figures above. However, even if the data provided by Applicant were used, the East Palm Beach banking market is unconcentrated, with a four-firm concentration ratio of 1. Statewide banking data are as of June 30, 1983. 48.48 percent, and an HHI of 869, and Applicant's market share would 2. The Miami-Fort Lauderdale banking market is defined as Dade be 17.29 percent. After consummation of the proposed acquisition, and Broward counties. Applicant's market share would increase to 22.1 percent, and the 3. The East Palm Beach banking market comprises the eastern market would remain relatively unconcentrated, with a four-firm three-fourths of Palm Beach County, excluding the Belle Glade- concentration ratio of 53.56 percent, and the market HHI would Pahokee area. increase by 176 points to 1045. Even on the basis of these data, the 4. East Palm Beach banking market data are as of June 30, 1982, Board does not believe that the proposal would significantly reduce and have been adjusted to reflect the recently consummated merger of competition in the market. Sun Banks and Flagship Banks, the divestiture by Barnett of nine 6. See, e.g., Monmouth Financial Services, Inc., 69 FEDERAL offices in the market in November 1982 in conjunction with its RESERVE BULLETIN 867 (1983); Barnett Banks of Florida, Inc., 69 acquisition of First Marine Banks, Inc., and the recently approved FEDERAL RESERVE BULLETIN 44 (1983); First Tennessee National acquisition of Royal Trust Banks of Florida by Florida National Banks Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983); Midlantic of Florida. Banks, Inc., 69 FEDERAL RESERVE BULLETIN 652 (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 243 loans than commercial banks nationally. Accordingly, overlapping market share is not significant in comparithe Board deemed it appropriate to consider the pres- son with the total market volume for trust services. ence of thrift institutions in the East Palm Beach Moreover, there are a large number of competitors for banking market as a mitigating factor in assessing the trust services in Florida and in the relevant markets, competitive effects of this transaction.7 and elimination of Applicant or Florida Coast as a Consequently, while consummation of the proposal competitor for trust services would not have any would eliminate some existing competition in the significant adverse effects on competition. Accordingrelevant banking markets, the Board has determined ly, it does not appear that acquisition of the nonbankthat, in view of all of the facts of record, consumma- ing subsidiaries of Florida Coast would have any tion of this proposal would not have a significant significant effect upon existing or potential competiadverse effect on existing or potential competition in tion in any relevant area. the Miami-Fort Lauderdale banking market or the Furthermore, there is no evidence in the record to East Palm Beach banking market. Thus, competitive indicate that approval of this proposal would result in effects are consistent with approval. undue concentration of resources, decreased or unfair The financial and managerial resources of Applicant competition, conflicts of interests, unsound banking and its subsidiary banks are regarded as generally practices, or other adverse effects on the public intersatisfactory and their future prospects appear favor- est. Accordingly, the Board has determined that the able.8 The financial and managerial resources and balance of the public interest factors it must consider future prospects of Florida Coast and its subsidiary under section 4(c)(8) of the Act is favorable and banks are also satisfactory. Accordingly, consider- consistent with approval of this application. ations relating to banking factors are consistent with Based on the foregoing and all of the other facts of approval. Although no new banking services would be record, the Board has determined that the applications introduced to the relevant banking markets as a result under sections 3(a)(3) and 4(c)(8) of the Act should be of the proposed transaction, considerations relating to and hereby are approved. The transaction shall not be convenience and needs of the communities to be consummated before the thirtieth day following the served are consistent with approval. Based on the effective date of this Order, or later than three months foregoing and all the facts of record, it is the Board's after the effective date of this Order, unless such judgment that consummation of the transaction would period is extended for good cause by the Board or by be consistent with the public interest. the Federal Reserve Bank of Atlanta, pursuant to Applicant has also applied, pursuant to section delegated authority. 4(c)(8) of the Act, to acquire Midlantic/Florida Coast By order of the Board of Governors, effective Holdings, Inc., and its wholly-owned subsidiary, Flor- February 15, 1984. ida Coast Midlantic Trust Company, N.A., Lighthouse Point, Florida, which provides trust company Voting for this action: Chairman Volcker and Governors services. No adverse competitive effects would result Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Governor Martin. from the proposed acquisition of Midlantic/Florida Coast Holdings, Inc., and its subsidiary, because the JAMES MCAFEE, [SEAL] Associate Secretary of the Board 7. If, to reflect the competitive influence by thrift institutions in the market, the Board were to include only 10 percent of the deposits held by thrift institutions operating in the market, the market would be unconcentrated, with an HHI of 666, and, upon consummation of the Orders Issued Under Section 5 of Bank Service proposed transaction, would remain unconcentrated with an increase Corporation Act in the HHI of 112 points to 778. 8. In this regard, Florida Coast contends that shares of voting stock of Florida Coast held by Mr. Dennis O'Neil, Mr. James Walter, Mr. The Indiana National Bank, G. William Wilde, and Banco de Credito Bank and Trust Company are American Fletcher National Bank and Trust controlled by, and should be attributed to, Barnett. The Board has reviewed the rights associated with the preferred shares and options Company, and involved and, based on all of the facts of record, has determined that Merchants National Bank and Trust Company, Barnett has not violated the BHC Act and that the actions described by Florida Coast do not warrant denial of this application. The Board all of Indianapolis, Indiana has also reviewed the facts and circumstances surrounding Barnett's purchase of preferred stock of Florida Coast. Because Barnett imme- Order Approving Acquisition of AIM Bank Service diately filed an application to convert these shares, the Board does not believe that the transaction is inconsistent with the BHC Act, Regula- Corporation tion Y, or the Board's policy statement regarding nonvoting equity investments. The Board also believes that the facts of record regarding these matters do not warrant a formal hearing, and denies Florida Indiana National Bank ("Indiana National"), Ameri- Coast's request for a formal hearing. can Fletcher National Bank and Trust Company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 Federal Reserve Bulletin • March 1984 ("American Fletcher"), and Merchants National Bank assure reasonable access by all parties, while mainand Trust Company ("Merchants National") all of taining the facility in its primary function as back-up Indianapolis, Indiana, and all national banks chartered support for its owner Banks. Company would not by the Comptroller of the Currency (collectively, provide any data processing hardware or software. "Banks"), have applied for the Board's approval Instead, Company's customers would utilize their own under section 5(b) of the Bank Service Corporation equipment at the facility for the duration of an emer- Act, as amended ("BSCA") (12 U.S.C. § 1865(b)), gency, and remove such equipment thereafter. Under each to acquire one-third of the voting shares of a bank these circumstances, the Board believes that Appliservice corporation, AIM Bank Service Corporation, cant's proposed activities are permissible activities Indianapolis, Indiana ("Company"), a joint venture to under § 225.25(b)(7) of Regulation Y. provide back-up data processing facilities and services Section 5(c) of the BSCA authorizes the Board, in to Banks and to other banking and nonbanking enti- acting upon applications to invest in bank service ties. corporations, to consider the financial and managerial Section 4(f) of the BSCA authorizes bank service resources of the institutions involved. The Board has corporations, with the prior approval of the Board, to reviewed the financial and managerial resources and engage at any geographic location in any activity that future prospects of the Banks and Company, including the Board has determined by regulation to be closely the financial capabilities of the Banks to make a related to banking and thus permissible for bank proposed investment under this Act, and has deterholding companies under the Bank Holding Company mined that such factors are consistent with approval. Act (12 U.S.C. § 1841 et seq.). The BSCA also The Board also is required to assess the adverse authorizes any bank, with the prior approval of the effects which may arise from consummation of a Board, to invest in bank service corporations engaged proposal under this section, such as undue concentrain those activities at such locations. The Board has tion of resources, unfair or decreased competition, previously determined, under section 225.25(b)(7) of conflicts of interests, or unsafe or unsound banking Regulation Y (12 CFR § 225.25(b)(7)), that the provi- practices. (12 U.S.C. § 1865(c)). Except for the facilision of data processing facilities and services to others ties and services to be provided through Company, no is such a permissible activity. Applicant offers the proposed data processing facilities Initially, Company would acquire from Indiana and services to affiliated and nonaffiliated institutions. Properties, Inc., a wholly-owned subsidiary of Indiana Inasmuch as the proposed venture is to commence National, an abandoned warehouse which it would de novo, no existing competition among the co-venturremodel to create a stand-by data processing facility ers in this line of commerce would be eliminated. containing adequate electrical, mechanical, and venti- The Board also has considered the effects of conlation capacity to service independently three separate summation of this proposal on probable future compedata processing operations, if ever required.1 Compa- tition in the provision of data processing facilities and ny thereafter would enter into contracts with each services, particularly in light of the fact that this owner Bank pursuant to which each would pay a fee application involves the use of a joint venture to for the right to use the facility in the event of a disaster engage in the relevant activities. The Board notes that or other emergency affecting its primary data process- Applicants are the three largest financial institutions in ing facility. The facility is meant primarily to service the Indianapolis, Indiana, banking market2 and prethe needs of Banks in the event of such a disaster. sumably could offer these back-up facilities and ser- Except for times of disaster, the facility would remain vices independently. However, Applicants have choempty. sen not to engage in such activities. Moreover, the To the extent that excess capacity would exist at the market for such back-up data processing services is facility during such emergencies, Company also would not regarded as concentrated. Additionally, barriers to contract with other banking and nonbanking entities to entry into this activity are low, as evidenced by the utilize the facility to process and transmit financial, small initial investment required of Applicants and the banking or economic data only. Availability for the widespread availability of the technical and managerial facility would be subject to prior use, as well as to a skills needed to engage in this activity. In this light, the series of contractually stated priorities designed to loss of these potential entrants into the market for 1. Applicant proposes to establish this facility in order to conform to the Comptroller's policy regarding banks' contingency planning for 2. As of September 30, 1983, Indiana National held assets of $2.7 data processing support. See Office of the Comptroller of the Curren- billion, American Fletcher had assets of 3.3 billion, and Merchant cy, Banking Circular No. 177 (June 9, 1983). National's assets totalled $2.0 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 245 back-up data processing facilities and services does tive public benefits will flow from the increased availnot raise any serious concerns. Accordingly, the ability of such stand-by data processing facilities and Board concludes that consummation of the proposed services in the event of a natural disaster. joint venture would not have any significantly adverse Accordingly, this application is approved, subject to effects upon probable future competition. the Board's authority to require such modification or The Board also has reviewed this proposal to ensure termination of the activities of a bank service corporathat no unfair competitive practices, violations of law tion as the Board finds necessary to assure compliance or other substantially adverse effects would result with the provisions and purposes of the Bank Service from consummation of this proposal. In this regard, Corporation Act or to prevent evasions thereof. the Board notes that Company intends to contract with By order of the Board of Governors, effective individual users in such a manner so as to assure February 7, 1984. reasonable access by all parties. Each contract, moreover, will state that no user is obliged to purchase or Voting for this action: Vice Chairman Martin and Goverutilize any other services of Company or its three nors Wallich, Partee, Rice, and Gramley. Abstaining from owner Banks. Upon a review of the record, therefore, this action: Governor Teeters. Absent and not voting: Chairman Volcker. the Board concludes that there is no evidence of adverse effects which would warrant disapproval of JAMES MCAFEE, the application. Moreover, the Board notes that posi- [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During February 1984 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) Angola Bancorporation, Inc., The First National Bank of Angola, February 13, 1984 Angola, Indiana Angola, Indiana Central Service Corporation, Nichols Hills Bancorporation, Inc., February 7, 1984 Enid, Oklahoma Oklahoma City, Oklahoma First State Banking Corporation, State Bank of Alcester, February 28, 1984 Alcester, South Dakota Alcester, South Dakota Kansas City Bancshares, Inc., Traders Bank of Kansas City, February 13, 1984 Kansas City, Missouri Kansas City, Missouri Olathe Financial Services Corporation, The Heritage Bank of Olathe, February 2, 1984 Olathe, Kansas Olathe, Kansas Security Shares, Inc., Security State Bank of Mankato, February 14, 1984 Mankato, Minnesota Mankato, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 Federal Reserve Bulletin • March 1984 By Board of Governors Section 4 Applicant Bank E^ve C.C.B., Inc., Central Bank at Centennial, N.A., February 1, 1984 Central Colorado Company, Littleton, Colorado Central Bancorporation, Inc., Denver, Colorado By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below, copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Banco Zaragozano, S.A., International Bank of Miami, Atlanta February 7, 1984 Madrid, Spain Miami, Florida Banzano International, N.V., Curacao, Netherlands Antilles Banzano, B.V., Amsterdam, Netherlands Miami National Bancorp, Coral Gables, Florida Bancshares of Ripley, Inc., Bank of Ripley, St. Louis February 6, 1984 Ripley, Tennessee Ripley, Tennessee Banks of Iowa, Inc., Commercial Trust & Savings Chicago February 17, 1984 Des Moines, Iowa Bank, Charles City, Iowa The Baraboo Bancorporation, Green Lake State Bank, Chicago February 16, 1984 Inc., Green Lake, Wisconsin Baraboo, Wisconsin Bezanson Corporation, Jefco, Inc., Chicago February 13, 1984 Cedar Rapids, Iowa Cedar Rapids, Iowa Broward Bancorp, Broward Bank, Atlanta February 9, 1984 Lauderdale Lakes, Florida Lauderdale Lakes, Florida Broward Bank, Broward Interim Bank, Atlanta February 9, 1984 Lauderdale Lakes, Florida Lauderdale Lakes, Florida Camino Real Bancshares, Inc., Frontier State Bank, Dallas FFeebbrruuaarryy 1166,, 11998844 Carrizo Springs, Texas Eagle Pass, Texas Coronado, Inc., Landmark Federal Savings Kansas City February 6, 1984 Sterling, Kansas Association, Dodge City, Kansas County Bankshares, Inc., Heritage Bank of Oak Lawn, Chicago February 10, 1984 Blue Island, Illinois Oak Lawn, Illinois East Tennessee Bancorp, Inc., Bank of Commerce, Atlanta January 20, 1984 Knoxville, Tennessee Morristown, Tennessee Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 247 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Eden Valley Bancshares, Inc., State Bank in Eden Valley, Minneapolis February 6, 1984 Eden Valley, Minnesota Eden Valley, Minneosta Elkton Bancorp, Inc., Elkton Bank and Trust Company, St. Louis February 13, 1984 Elkton, Kentucky Elkton, Kentucky F.A. Bankshares, Inc., First American Bank of Walton, Atlanta February 10, 1984 Monroe, Georgia Monroe, Georgia Farmers Bancorp of Sturgis, Farmers State Bank, St. Louis February 6, 1984 Inc., Sturgis, Kentucky Sturgis, Kentucky Fessenden Bancshares, Inc., The First National Bank of Minneapolis February 3, 1984 Fessenden, North Dakota Fessenden, Fessenden, North Dakota First American Bancshares, Grand National Bank, St. Louis February 8, 1984 Inc., Hot Springs, Arkansas North Little Rock, Arkansas First Bancorp of Kansas, Stockgrowers State Bank, Kansas City February 3, 1984 Wichita, Kansas Ashland, Kansas The First National Bank of Neodesha, Neodesha, Kansas First Breckinridge Bancshares, First State Bank, St. Louis February 7, 1984 Inc., Irvington, Kentucky Irvington, Kentucky First Commonwealth Financial Deposit Bank, Cleveland February 16, 1984 Corporation, DuBois, Pennsylvania Indiana, Pennsylvania First Farmers Bancshares, Inc., The Farmers Bank, Atlanta February 10, 1984 Portland, Tennessee Portland, Tennessee First Hey worth Corp., Farmers State Bank of Hey worth, Chicago February 14, 1984 Hey worth, Illinois Hey worth, Illinois First National Financial The First National Bank of Chicago February 13, 1984 Corporation, Marinette, Marinette, Wisconsin Marinette, Wisconsin First of Austin Bancshares, First National Bank, Dallas February 10, 1984 Inc., Austin, Texas Austin, Texas First Service Bancshares, Inc., First State Bank of Greenville, St. Louis February 2, 1984 Greenville, Kentucky Greenville, Kentucky First Virginia Banks, Inc., Virginia Citizens Bank, Richmond February 10, 1984 Clint wood, Virginia Clint wood, Virginia First Western Pennbancorp, First National Bank of Western Cleveland February 2, 1984 Inc., Pennsylvania, New Castle, Pennsylvania New Castle, Pennsylvania FNT Bancorp, First National Trust Bank, Philadelphia February 3, 1984 Sunbury, Pennsylvania Sunbury, Pennsylvania G.S.B. Financial Corp., The Garrett State Bank, Chicago February 10, 1984 Indianapolis, Indiana Garrett, Indiana Keystone Bancshares, Inc., Illinois Trust & Savings Bank, Chicago February 10, 1984 Kankakee, Illinois Ottawa, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 Federal Reserve Bulletin • March 1984 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Lexington Bancshares, Inc., Seven V Banco, Inc., Kansas City February 6, 1984 Lexington, Nebraska Callaway, Nebraska Maries County Bancorp, Inc., Maries County Bank, St. Louis February 10, 1984 Vienna, Missouri Vienna, Missouri Belle State Bank, Belle, Missouri Midwest Bancshares, Inc., State Bank of Sleepy Eye, Minneapolis February 2, 1984 Edina, Minnesota Sleepy Eye, Minnesota Midwest Financial Group, Inc. United Bancorporation, Inc., Chicago February 17, 1984 Peoria, Illinois Rockford, Illinois East Riverside Inc., Rockford, Illinois Oregon Corporation, Rockford, Illinois Rochelle Bancorporation, Rochelle, Illinois Minier Financial, Inc., First Farmer's State Bank of Chicago February 13, 1984 Minier, Illinois Minier, Minier, Illinois Moscow Bancshares, Inc., Moscow Savings Bank, St. Louis February 10, 1984 Moscow, Tennessee Moscow, Tennessee National Bancshares, Inc., American National Bancshares, Kansas City February 1, 1984 Oklahoma City, Oklahoma Inc., Midwest City, Oklahoma Northern of Tennessee Corp., First Southern Bank, Atlanta February 10, 1984 Clarksville, Tennessee Mt. Juliet, Tennessee Northside Financial Northwest Bank, N.A., Dallas February 10, 1984 Corporation, San Antonio, Texas San Antonio, Texas Pacific Capital Bancorp, First National Bank of Monterey San Francisco February 8, 1984 Monterey, California County, Monterey, California Penn Central Bancorp, Inc., Penn Central National Bank, Philadelphia February 10, 1984 Huntingdon, Pennsylvania Huntingdon, Pennsylvania Peoples Bancorp of Belleville, The Peoples National Bank of Kansas City January 17, 1984 Inc., Belleville, Belleville, Kansas Belleville, Kansas Premier Bancorporation, Inc., Golf Mill State Bank, Chicago February 9, 1984 Libertyville, Illinois Niles, Illinois Grayslake National Bank, Gray slake, Illinois Libertyville National Bank, Liberty ville, Illinois First National Bank of Mundelein, Mundelein, Illinois The Premier Bank of Vernon Hills, Vernon Hills, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 249 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Rio Grande Bancshares, Inc., First State Bank & Trust Dallas February 17, 1984 Edinburg, Texas Company, Edinburg, Texas River Forest Bancorp, Lincoln National Bank, Chicago February 17, 1984 River Forest, Illinois Chicago, Illinois Saline Bancorp., Inc., The Bank of Harrisburg, St. Louis February 7, 1984 Harrisburg, Illinois Harrisburg, Illinois Second National Corporation, Bentonville State Bank, Chicago February 7, 1984 Richmond, Indiana Bentonville, Indiana Shannon Bancorp, Inc., First State Bank of Shannon, Chicago February 13, 1984 Shannon, Illinois Shannon, Illinois Shawneetown Bancorp, Inc., First National Bank in Golconda, St. Louis February 14, 1984 Shawneetown, Illinois Golconda, Illinois Silver Run Bancorporation, The United States National Bank Minneapolis February 22, 1984 Inc., of Red Lodge, Red Lodge, Montana Red Lodge, Montana Southern Bancorp, Inc., Mount Vernon Bank, Atlanta February 3, 1984 Waycross, Georgia Mount Vernon, Georgia Southern Illinois Bancshares, The Brookport National Bank, St. Louis February 14, 1984 Inc., Brookport, Illinois Murphysboro, Illinois Southern Jersey Bancorp, The Farmers and Merchants Philadelphia February 10, 1984 Bridgeton, New Jersey National Bank of Bridgeton, Bridgeton, New Jersey Southern National Bancshares, The First National Bank of Atlanta February 17, 1984 Inc., DeKalb County, Decatur, Georgia Decatur, Georgia Spring Woods Bancshares, Inc., Spring Woods Bank, Dallas February 10, 1984 Houston, Texas Houston, Texas Swea City Bancorporation, Swea City State Bank, Chicago February 21, 1984 Swea City, Iowa Swea City, Iowa University National Bancshares Castle Hills National Bank, Dallas February 17, 1984 of San Antonio, Inc., San Antonio, Texas San Antonio, Texas Valley Bank Holding Corpany, Mountain National Bank, Kansas City February 6, 1984 Security, Colorado Woodland Park, Colorado Warrensburg Bancshares, Inc., Community Bank of Warrens- Kansas City February 10, 1984 Chillicothe, Missouri burg, Warrensburg, Missouri West Central Illinois Bancorp, The National Bank of Monmouth, Chicago February 13, 1984 Inc., Monmouth, Illinois Peoria, Illinois Section 4 . *. , Nonbanking Reserve Effective Applicant „ . , ^ company Bank date Bovey Financial Corporation, Bovey Insurance Service, Minneapolis February 3, 1984 Bovey, Minnesota Bovey, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 Federal Reserve Bulletin • March 1984 Section 4—Continued Nonbanking Reserve Effective Applicant company Bank date CoreState Financial Corp, Sterling Finance Corporation, Philadelphia February 10, 1984 East Aurora, New York East Aurora, New York First Union Corporation, Salem Securities, Inc., Richmond February 10, 1984 Charlotte, North Carolina Winston-Salem, North Carolina Manly State Bancshares, Inc., Hanlontown Insurance Agency, Chicago February 14, 1984 Mason City, Iowa Hanlontown, Iowa National City Bancorporation, Diversified Discount and Accep- Minneapolis February 6, 1984 Minneapolis, Minnesota tance Corporation, Minneapolis, Minnesota Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date River Oaks Bancshares, Inc., River Oaks Bank & Trust Dallas February 17, 1984 Houston, Texas Company, Houston, Texas River Oaks Trust Company, Houston, Texas River Oaks Trust Corporation, Houston, Texas St. Clair Agency, Inc., St. Clair State Bank, Minneapolis February 14, 1984 St. Clair, Minnesota St. Clair, Minnesota general insurance agency activities Union Bankshares, Inc. The Union Bank of Mena, St. Louis February 2, 1984 Mena, Arkansas Mena, Arkansas real estate appraisal ORDERS APPROVED UNDER BANK MERGER ACT By the Board of Governors Effective Applicant Bank date United Virginia Bank, Bank of Virginia, February 7, 1984 Richmond, Virginia Richmond, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 251 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. Dimension Financial Corporation, et al. v. Board of First Bancorporation v. Board of Governors, filed Governors, filed December 1983, U.S.C.A. for the April 1982, U.S.C.A. for the Tenth Circuit. Tenth Circuit. Jolene Gustafson v. Board of Governors, filed March Omaha Bankers Association v. Federal Reserve 1982, U.S.C.A. for the Fifth Circuit. Board, filed December 1983, U.S.C. A. for the Tenth Edwin F. Gordon v. Board of Governors, et al., filed Circuit. October 1981, U.S.C.A. for the Eleventh Circuit Sunuorph Aeronautical Corp. v. Federal Reserve (two consolidated cases). Board, filed November 1983, U.S.D.C. for the Allen Wolf son v. Board of Governors, filed September Northern District of Ohio. 1981, U.S.D.C. for the Middle District of Florida. Independent Insurance Agents of America, Inc. and Public Interest Bounty Hunters v. Board of Gover- Independent Insurance Agents of Missouri, Inc. v. nors, et al., filed June 1981, U.S.C.A. for the Board of Governors, filed June 1983, U.S.C. A. for Eleventh Circuit. the Eighth Circuit (two cases). First Bank & Trust Company v. Board of Governors, The Committee for Monetary Reform, et al., v. Board filed February 1981, U.S.D.C. for the Eastern Disof Governors, filed June 1983, U.S.D.C. for the trict of Kentucky. District of Columbia. 9 to 5 Organization for Women Office Workers v. Securities Industry Association v. Board of Gover- Board of Governors, filed December 1980, nors, et al., filed February 1983, Supreme Court. U.S.C.A. for the First Circuit. Flagship Banks, Inc. v. Board of Governors, filed A. G. Becker, Inc. v. Board of Governors, et al., filed January 1983, U.S.D.C. for the District of Colum- October 1980, U.S.C.A. for the District of Columbia, U.S.C.A. for the District of Columbia Circuit. bia. Flagship Banks, Inc. v. Board of Governors, filed A. G. Becker, Inc. v. Board of Governors, et al., filed October 1982, U.S.D.C. for the District of Colum- August 1980, Supreme Court. bia. Wyoming Bancorporation v. Board of Governors, filed May 1982, U.S.C.A. for the Tenth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

253 Directors of Federal Reserve Banks and Branches The following list of directors of Federal Reserve District are classified by the Board of Governors into Banks and Branches shows the principal business three groups, each of which consists of banks with affiliation, the class of directorship, and the expiration similar capitalization; each group then elects one Class date of the term for each director. Each Federal A and one Class B director. Class C directors are Reserve Bank has nine members on its board of appointed by the Board of Governors. The Board of directors: three Class A and three Class B directors, Governors designates one Class C director as Chairwho are elected by the stockholding member banks, man of the board of directors and Federal Reserve and three Class C directors, who are appointed by the Agent of each District Bank and appoints another as Board of Governors of the Federal Reserve System. Deputy Chairman. All Federal Reserve Bank directors are chosen with- Federal Reserve Branches have either five or seven out discrimination on the basis of race, creed, color, directors, a majority of whom are appointed by the sex, or national origin. Class A directors represent the board of directors of the parent Federal Reserve Bank; stockholding member banks in each Federal Reserve the others are appointed by the Board of Governors of District. Class B and Class C directors represent the the Federal Reserve System. One of the directors public and are chosen with due, but not exclusive, appointed by the Board of Governors at each Branch consideration to the interests of agriculture, com- is designated annually as Chairman of the board of that merce, industry, services, labor, and consumers; they Branch in a manner the Federal Reserve Bank premay not be officers, directors, or employees of any scribes. bank, and Class C directors may not be stockholders In this list of the directors, footnote 1 denotes a of any bank. chairman of the Bank's board; footnote 2, a deputy For the purpose of electing Class A and Class B chairman; and footnote 3, a director whose service directors, the member banks of each Federal Reserve began in 1983. DISTRICT 1—BOSTON Class A James Stokes Hatch President and Chief Executive Officer, The Canaan National Bank, 1984 Canaan, Connecticut William W. Treat President, Bank Meridian, N.A., Hampton, New Hampshire 1985 William S. Edgerly3 Chairman and President, State Street Bank and Trust Company, 1986 Boston, Massachusetts Class B George N. Hatsopoulos Chairman of the Board and President, Thermo Electron Company, 1984 Waltham, Massachusetts Matina S. Horner President, Radcliffe College, Cambridge, Massachusetts 1985 Joseph A. Baute Chairman and Chief Executive Officer, Markem Corporation, 1986 Keene, New Hampshire Class C Robert P. Henderson1 Vice Chairman of the Board of Directors, Greylock Management 1984 Corporation, Boston, Massachusetts Thomas I. Atkins2 General Counsel, National Association for the Advancement of 1985 Colored People, New York, New York Michael J. Harrington Harrington Company, Peabody, Massachusetts 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin • March 1984 DISTRICT 2—NEW YORK Term expires Class A Dec. 31 Robert A. Rough President, The National Bank of Sussex County, Branchville, 1984 New Jersey Alfred Brittain Chairman of the Board, Bankers Trust Company, New York, 1985 New York T. Joseph Semrod3 Chairman of the Board, United Jersey Bank, Hackensack, 1986 New Jersey Class B Edward L. Hennessy, Jr. Chairman of the Board, Allied Chemical Corporation, Morristown, 1984 New Jersey William S. Cook President and Chief Executive Officer, Union Pacific Corporation, 1985 New York, New York John R. Opel Chairman of the Board and Chief Executive Officer, International 1986 Business Machines Corporation, Armonk, New York Class C Gertrude G. Michelson2 Senior Vice President, R.H. Macy & Company, Inc., New York, 1984 New York John Brademas1 President, New York University, New York, New York 1985 Clifton R. Wharton, Jr. Chancellor, State University of New York System, Albany, 1986 New York —BUFFALO BRANCH Appointed by Federal Reserve Bank Edward W. Duffy Chairman of the Executive Committee, Marine Midland Bank, 1984 N.A., Buffalo, New York Frederick G. Ray Chairman, President and Chief Executive Officer, Rochester 1985 Savings Bank, Rochester, New York Donald I. Wickham President, Tri-Way Farms, Inc., Stanley, New York 1985 Herbert Fort3 President, The Bath National Bank, Bath, New York 1986 Appointed by Board of Governors George L. Wessel President, Buffalo AFI^CIO Council, Buffalo, New York 1984 M. Jane Dickman1 Partner, Touche Ross & Co., Buffalo, New York 1985 Laval S. Wilson3 Superintendent of Schools, City School District, Rochester, 1986 New York DISTRICT 3—PHILADELPHIA Class A Douglas Eugene Johnson Chairman and President, Ocean County National Bank, Point 1984 Pleasant Beach, New Jersey JoAnne Brinzey Cashier and Chief Executive Officer, The First National Bank at 1985 Gallitzin, Gallitzin, Pennsylvania John H. Walther3 Chairman of the Board, New Jersey National Bank, Trenton, 1986 New Jersey Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 255 DISTRICT 3—CONTINUED Term expires Class B Dec. 31 Richard P. Hauser Chairman and Chief Executive Officer, John Wanamaker, 1984 Philadelphia, Pennsylvania Eberhard Faber, IV Chairman of the Board and Chief Executive Officer, Eberhard 1985 Faber, Inc., Wilkes-Barre, Pennsylvania Carl E. Singley3 Dean and Professor of Law, Temple University Law School, 1986 Philadelphia, Pennsylvania Class C George E. Bartol, III Chairman of the Board, Hunt Manufacturing Company, 1984 Philadelphia, Pennsylvania Nevius M. Curtis2 President and Chief Executive Officer, Delmarva Power & Light 1985 Company, Wilmington, Delaware Robert M. Landis1 Partner, Dechert Price & Rhoads, Philadelphia, Pennsylvania 1986 DISTRICT 4—CLEVELAND Class A Raymond D. Campbell President and Chief Executive Officer, Independent State Bank of 1984 Ohio, Columbus, Ohio William A. Stroud President, First-Knox National Bank, Mount Vernon, Ohio 1985 J. David Barnes Chairman and Chief Executive Officer, Mellon Bank, Pittsburgh, 1986 Pennsylvania Class B Richard D. Hannan Chairman of the Board and President, Mercury Instruments, Inc., 1984 Cincinnati, Ohio John W. Kessler President, John W. Kessler Company, Columbus, Ohio 1985 John R. Hall3 Chairman and Chief Executive Officer, Ashland Oil, Inc., 1986 Ashland, Kentucky Class C E. Mandell de Windt2 Chairman of the Board, Eaton Corporation, Cleveland, Ohio 1984 William H. Knoell1 President and Chief Executive Officer, Cyclops Corporation, 1986 Pittsburgh, Pennsylvania Vacancy —CINCINNATI BRANCH Appointed by Federal Reserve Bank Richard J. Fitton President and Chief Executive Officer, First National Bank of 1984 Southwestern Ohio, Hamilton, Ohio Sherrill Cleland President, Marietta College, Marietta, Ohio 1984 Clement L. Buenger President, The Fifth Third Bank, Cincinnati, Ohio 1985 Vernon J. Cole3 Executive Vice President and Chief Executive Officer, Harlan 1986 National Bank, Harlan, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin • March 1984 DISTRICT 4—CONTINUED Term expires Appointed by Board of Governors Dec. 31 Don Ross Owner, Dunreath Farm, Lexington, Kentucky 1984 President, Sisters of Charity Health Care Systems, Inc. 1985 Sister Grace Marie Hiltz Cincinnati, Ohio Vacancy —PITTSBURGH BRANCH Appointed by Federal Reserve Bank Robert C. Milsom President, Pittsburgh National Bank, Pittsburgh, Pennsylvania 1984 James S. Pasman, Jr. Vice Chairman, Aluminum Company of America, Pittsburgh, 1984 Pennsylvania A. Dean Heasley President and Chief Executive Officer, Century National Bank • 1985 Trust Co., Rochester, Pennsylvania G. R. Rendle3 President and Chief Executive Officer, Gallatin National Bank, 1986 Uniontown, Pennsylvania Appointed by Board of Governors Milton A. Washington3 President and Chief Executive Officer, Allegheny Housing 1984 Rehabilitation Corporation, Pittsburgh, Pennsylvania Robert S. Kaplan Dean, Graduate School of Industrial Administration, 1985 Carnegie-Mellon University, Pittsburgh, Pennsylvania Milton G. Hulme, Jr.1 President and Chief Executive Officer, Mine Safety Appliances 1986 Company, Pittsburgh, Pennsylvania DISTRICT 5—RICHMOND Class A Joseph A. Jennings Chairman and Chief Executive Officer, United Virginia Bankshares 1984 Inc. and United Virginia Bank, Richmond, Virginia Willard H. Derrick President and Chief Executive Officer, Sandy Springs National 1985 Bank and Savings Institution, Sandy Springs, Maryland Robert S. Chiles, Sr.3 President and Chief Executive Officer, Greensboro National Bank, 1986 Greensboro, North Carolina Class B Paul G. Miller Director, Commercial Credit Company, Baltimore, Maryland 1984 George Deane Johnson, Partner, Johnson, Smith, Hibbard, Cleveland, Wildman and 1985 Jr.3 Dennis, Spartanburg, South Carolina Thomas B. Cookerly3 President, Broadcast Division, Allbritton Communications, 1986 Washington, D.C. Class C William S. Lee, III1 Chairman of the Board and Chief Executive Officer, Duke Power 1984 Company, Charlotte, North Carolina Robert A. Georgine President, Building and Construction Trades Department, 1985 AFL-CIO, Washington, D.C. Leroy T. Canoles, Jr.2 3 President, Kaufman and Canoles, Norfolk, Virginia 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 257 DISTRICT 5—CONTINUED TERM expires —BALTIMORE BRANCH Dec. 31 Appointed by Federal Reserve Bank Pearl C. Brackett Retired Deputy Manager, Baltimore Regional Chapter of the 1984 American Red Cross, Baltimore, Maryland Hugh D. Shires Retired Senior Vice President, First National Bank of Maryland, 1985 Cumberland, Maryland Howard I. Scaggs Chairman of the Board, American National Building and Loan 1985 Association, Baltimore, Maryland Charles W. Hoff, IIP President and Chief Executive Officer, Farmers and Mechanics 1986 National Bank, Frederick, Maryland Appointed by Board of Governors Thomas H. Maddux Executive Vice President and Chief Operating Officer, Easco 1984 Corporation, Baltimore, Maryland Edward H. Covell President, The Covell Company, Easton, Maryland 1985 Robert L. Tate1 Chairman, Tate Industries, Baltimore, Maryland 1986 —CHARLOTTE BRANCH Appointed by Federal Reserve Bank Hugh M. Chapman Chairman of the Board and Chief Executive Officer, The Citizens 1984 and Southern National Bank of South Carolina, Columbia, South Carolina John G. Medlin President, Wachovia Bank and Trust Company, N.A., 1985 Winston-Salem, North Carolina J. Donald Collier3 President and Chief Executive Officer, First National Bank in 1985 Orangeburg, Orangeburg, South Carolina John A. Hardin3 Chairman of the Board and President, First Federal Savings and 1986 Loan Association, Rock Hill, South Carolina Appointed by Board of Governors Henry Ponder1 President, Benedict College, Columbia, South Carolina 1984 G. Alex Bernhardt President and Director, Bernhardt Industries, Inc., Lenoir, 1985 North Carolina Wallace J. Jorgenson President, Jefferson-Pilot Broadcasting Co., Charlotte, 1986 North Carolina DISTRICT 6—ATLANTA Class A Guy W. Botts Chairman of the Board, Barnett Banks of Florida, Inc., 1984 Jacksonville, Florida Dan B. Andrews President, First National Bank, Dickson, Tennessee 1985 Mary W. Walker3 President, The National Bank of Walton County, Monroe, Georgia 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin • March 1984 DISTRICT 6—CONTINUED TERM expires Class B Dec. 31 Horatio C. Thompson President, Horatio Thompson Investments, Inc., Baton Rouge, 1984 Louisiana Bernard F. Sliger President, Florida State University, Tallahassee, Florida 1985 Harold B. Blach, Jr. President, Blach's Inc., Birmingham, Alabama 1986 Class C Jane C. Cousins President and Chief Executive Officer, Merrill Lynch Realty/ 1984 Cousins, Miami, Florida John H. Weitnauer, Jr.1 Chairman and Chief Executive Officer, Richway, Atlanta, Georgia 1985 Bradley Currey, Jr.2-3 President, Rock-Tenn Company, Norcross, Georgia 1986 —BIRMINGHAM BRANCH Appointed by Federal Reserve Bank William M. Schroeder Chairman and President, Central State Bank, Calera, Alabama 1984 Grady Gillam Chairman, The American National Bank, Gadsden, Alabama 1985 G. Mack Dove President, AAA Cooper Transportation Co., Dothan, Alabama 1985 Charles Lee Peery3 Chairman, The First National Bank of Florence, Florence, 1986 Alabama Appointed by Board of Governors Louis J. Willie Executive Vice President, Booker T. Washington Insurance Co., 1984 Birmingham, Alabama Martha A. Mclnnis1 President, EnviroSouth, Inc., Montgomery, Alabama 1985 Samuel R. Hill, Jr. President, University of Alabama in Birmingham, Birmingham, 1986 Alabama —JACKSONVILLE BRANCH Appointed by Federal Reserve Bank Lewis A. Doman President, Citizens and Peoples National Bank, Pensacola, Florida 1984 E.F. Keen, Jr. Vice Chairman and President, Ellis Banking Corporation, 1985 Bradenton, Florida George C. Boone, Jr.3 President and Chief Executive Officer, Security First Federal 1985 Savings and Loan Association, Daytona Beach, Florida John D. Uible3 Chairman and Chief Executive Officer, Florida National Banks of 1986 Florida, Inc., Jacksonville, Florida Appointed by Board of Governors Jerome P. Keuper1 President, Florida Institute of Technology, Melbourne, Florida 1984 E. William Nash, Jr. President, South Central Operations, The Prudential Insurance 1985 Company of America, Jacksonville, Florida Jo Ann Doke Smith3 Co-owner, Smith Brothers, Micanopy, Florida 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 259 DISTRICT 6—CONTINUED Term expires —MIAMI BRANCH Dec. 31 Appointed by Federal Reserve Bank Robert D. Rapaport3 Principal, The Rapaport Companies, Palm Beach, Florida 1984 Stephen G. Zahorian President, Barnett Bank of Lee County, N.A., Fort Myers, Florida 1984 D. S. Hudson, Jr. Chairman, First National Bank and Trust Company of Stuart, 1985 Stuart, Florida Robert L. Kester3 Chairman, Florida Coast Banks, Inc., Pompano Beach, Florida 1986 Appointed by Board of Governors Roy Vandegrift, Jr. President, Roy Van, Inc., Pahokee, Florida 1984 Sue McCourt Cobb1 Attorney, Greenberg, Traurig, Askew, Hoffman, Lipoff, Rosen, 1985 and Quentel, P.A., Miami, Florida Eugene E. Cohen Chief Financial Officer and Treasurer, Howard Hughes Medical 1986 Institute, Coconut Grove, Florida —NASHVILLE BRANCH Appointed by Federal Reserve Bank Michael T. Christian President and Chief Executive Officer, Commerce Union Bank of 1984 Greene ville, Greeneville, Tennessee Owen G. Shell, Jr. President and Chief Executive Officer, First American National 1985 Bank of Nashville, Nashville, Tennessee Samuel H. Howard Vice President and Treasurer, Hospital Corporation of America, 1985 Nashville, Tennessee Robert W. Jones3 Chairman and President, First National Bank, McMinnville, 1986 Tennessee Appointed by Board of Governors C. Warren Neel1 Dean, College of Business Administration, The University of 1984 Tennessee, Knoxville, Tennessee Condon S. Bush President, Bush Brothers & Company, Dandridge, Tennessee 1985 Patsy R. Williams3 Partner, Rhyne Lumber Company, Newport, Tennessee 1986 —NEW ORLEANS BRANCH Appointed by Federal Reserve Bank Jerry W. Brents Lafayette, Louisiana 1984 Philip K. Livingston President and Chief Executive Officer, Citizens National Bank, 1985 Hammond, Louisiana Tom B. Scott, jr. President and Chief Executive Officer, Unifirst Federal Savings 1985 and Loan Association, Jackson, Mississippi Carl E. Jones, Jr.3 Chairman, President and Chief Executive Officer, Merchants 1986 National Bank of Mobile, Mobile, Alabama Appointed by Board of Governors Roosevelt Steptoe Professor of Economics, Southern University, Baton Rouge 1984 Campus, Baton Rouge, Louisiana Sharon A. Perlis1 Attorney, Metairie, Louisiana 1985 Leslie B. Lampton President, Ergon, Inc., Jackson, Mississippi 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Federal Reserve Bulletin • March 1984 DISTRICT 7—CHICAGO Term expires Class A Dec. 31 Charles M. Bliss Retired Chairman of the Board and Chief Executive Officer, Harris 1984 Bankcorp, Inc.-Harris Trust and Savings Bank, Chicago, Illinois Patrick E. McNarny President, First National Bank of Logansport, Logansport, Indiana 1985 Ollie Jay Tomson President, The Citizens National Bank of Charles City, Charles 1986 City, Iowa Class B Dennis W. Hunt President, Hunt Truck Lines, Inc., Rockwell City, Iowa 1984 Mary Garst Manager of Cattle Division, Garst Company, Coon Rapids, Iowa 1985 Leon T. Kendall Chairman of the Board and Chief Executive Officer, Mortgage 1986 Guaranty Insurance Corp., Milwaukee, Wisconsin Class C Edward F. Brabec2 Business Manager, Chicago Journeymen Plumbers, 1984 Local Union 130, U.A., Chicago, Illinois Stanton R. Cook1 President, Tribune Company, Chicago, Illinois 1985 Robert G. Day3 President and Chief Operating Officer, United States Gypsum 1986 Company, Chicago, Illinois —DETROIT BRANCH Appointed by Federal Reserve Bank James H. Duncan Chairman of the Board and Chief Executive Officer, First 1984 American Bank Corporation, Kalamazoo, Michigan Thomas R. Ricketts Chairman of the Board and President, Standard Federal Savings 1984 and Loan Association, Troy, Michigan Charles T. Fisher, III Chairman of the Board and President, National Bank of Detroit, 1985 Detroit, Michigan Ronald D. Story3 President, The Ionia County National Bank of Ionia, Ionia, 1986 Michigan Appointed by Board of Governors Robert E. Brewer Executive Vice President-Finance, K Mart Corporation, Troy, 1984 Michigan Russell G. Mawby1 President and Trustee, W.K. Kellogg Foundation, Battle Creek, 1985 Michigan Karl D. Gregory Professor, Management and Economic Consultant, School of 1986 Economics and Management, Oakland University, Rochester, Michigan DISTRICT 8—ST. LOUIS Class A George M. Ryrie President, First National Bank & Trust Co., Alton, Illinois 1984 Donald L. Hunt President, First National Bank of Marissa, Marissa, Illinois 1985 Clarence C. Barksdale Chairman of the Board and President, Centerre Bank, N.A., 1986 St. Louis, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 261 DISTRICT 8—CONTINUED Term expires Class B Dec. 31 Jesse M. Shaver Consultant, Allis-Chalmers Corporation, Louisville, Kentucky 1984 Robert J. Sweeney3 President and Chief Executive Officer, Murphy Oil Corp., 1985 El Dorado, Arkansas Frank A. Jones, Jr. President, Dietz Forge Company, Memphis, Tennessee 1986 Class C W.L. Hadley Griffin1 Chairman of the Board, Brown Group, Inc., St. Louis, Missouri 1984 Robert L. Virgil Dean, School of Business, Washington University, St. Louis, 1985 Missouri Mary P. Holt2 President, Clothes Horse, Little Rock, Arkansas 1986 —LITTLE ROCK BRANCH Appointed by Federal Reserve Bank Gordon E. Parker Chairman of the Board, The First National Bank of El Dorado, 1984 El Dorado, Arkansas Wilbur P. Gulley, Jr. Chairman of the Board and Chief Executive Officer, Savers 1984 Federal Savings and Loan Association, Little Rock, Arkansas D. Eugene Fortson Chairman and Chief Executive Officer, Worthen Bank and Trust 1985 Company, N.A., Little Rock, Arkansas Willliam H. Kennedy, Jr. Chairman of the Board, National Bank of Commerce of Pine Bluff, 1986 Pine Bluff, Arkansas Appointed by Board of Governors Sheffield Nelson1 Chairman of the Board and Chief Executive Officer, Arkla, Inc., 1984 Little Rock, Arkansas Shirley J.R. Pine, Ph.D. Department of Communicative Disorders, University of Arkansas 1985 at Little Rock, Little Rock, Arkansas Richard V. Warner Group Vice President, Wood Products Group, Potlatch 1986 Corporation, Warren, Arkansas —LOUISVILLE BRANCH Appointed by Federal Reserve Bank R.I. Kerr, Jr. Chairman of the Board, President, and Chief Executive Officer, 1984 Great Financial Federal, Louisville, Kentucky John E. Darnell, Jr. Chairman of the Board, The Owensboro National Bank, 1984 Owensboro, Kentucky Allan S. Hanks President, The Anderson National Bank of Lawrenceburg, 1985 Lawrenceburg, Kentucky Frank B. Hower, Jr. Chairman of the Board and Chief Executive Officer, Liberty 1986 National Bank and Trust Company of Louisville, Louisville, Kentucky Appointed by Board of Governors Sister Eileen M. Egan1 President, Spalding University, Louisville, Kentucky 1984 Henry F. Frigon President, BATUS, Inc., Louisville, Kentucky 1985 William C. Ballard, Jr. Executive Vice President, Finance and Administration, Humana, 1986 Inc., Louisville, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Federal Reserve Bulletin • March 1984 DISTRICT 8—CONTINUED Term expires —MEMPHIS BRANCH Dec. 31 Appointed by Federal Reserve Bank Edgar H. Bailey Chairman of the Board and Chief Executive Officer, Leader 1984 Federal Savings and Loan Association, Memphis, Tennessee William M. Matthews, Jr. Chairman of the Board and Chief Executive Officer, Union 1984 Planters National Bank, Memphis, Tennessee William H. Brandon, Jr. President, First National Bank of Phillips County, Helena, 1985 Arkansas Wayne W. Pyeatt President, Memphis Fire Insurance Company, Memphis, 1986 Tennessee Appointed by Board of Governors G. Rives Neblett Attorney, Neblett, Bobo, Chapman & Heaton, Shelby, Mississippi 1984 Patricia W. Shaw1 President and Chief Executive Officer, Universal Life Insurance 1985 Company, Memphis, Tennessee Donald B. Weis President, Tamak Transportation Corp., West Memphis, Arkansas 1986 DISTRICT 9—MINNEAPOLIS Class A Dale W. Fern President and Chairman of the Board, The First National Bank of 1984 Baldwin, Baldwin, Wisconsin Curtis W. Kuehn President, The First National Bank in Sioux Falls, Sioux Falls, 1985 South Dakota Burton P. Allen, Jr.3 President, First National Bank, Milaca, Minnesota 1986 Class B William L. Mathers President, Mathers Land Co., Inc., Miles City, Montana 1984 Richard L. Falconer District Manager, Northwestern Bell, Bismarck, North Dakota 1985 Harold F. Zigmund Chairman, Blandin Paper Company, Grand Rapids, Minnesota 1986 Class C William G. Phillips1 Chairman of the Board and Chief Executive Officer, International 1984 Multifoods, Minneapolis, Minnesota Sister Generose Gervais Administrator, St. Mary's Hospital, Rochester, Minnesota 1985 John B. Davis, Jr.2 President, Macalester College, St. Paul, Minnesota 1986 —HELENA BRANCH Appointed by Federal Reserve Bank Harry W. Newlon President, First National Bank, Bozeman, Montana 1984 Seabrook Pates President and Chief Executive Officer, Midland Implement Co., 1984 Inc., Billings, Montana Roger H. Ulrich President, The First State Bank of Malta, Malta, Montana 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 263 DISTRICT 9—CONTINUED TERM expires —HELENA BRANCH—CONTINUED Dec. 31 Appointed by Board of Governors Ernest B. Corrick1 Vice President and General Manager, Champion International 1984 Corporation, Timberlands-Rocky Mountain Operation, Missoula, Montana Gene J. Etchart Past President, Hinsdale Livestock Company, Glasgow, Montana 1985 DISTRICT 10—KANSAS CITY Class A John D. Woods Chairman and Chief Executive Officer, The Omaha National Bank, 1984 Omaha, Nebraska Howard K. Loomis President, The Peoples Bank, Pratt, Kansas 1985 Wayne D. Angell Chairman, First State Bank, Pleasanton, Kansas 1986 Class B Duane C. Acker President, Kansas State University, Manhattan, Kansas 1984 Charles C. Gates Chairman of the Board and President, Gates Corporation, Denver, 1985 Colorado Richard D. Harrison3 Chairman of the Board and Chief Executive Officer, Fleming 1986 Companies, Inc., Oklahoma City, Oklahoma Class C Doris M. Drury1 Professor of Economics and Director of Public Affairs Program, 1984 University of Denver, Englewood, Colorado Irvine O. Hockaday, Jr.2-3 Executive Vice President and Member of the Office of the 1986 Chairman, Hallmark Cards, Inc., Kansas City, Missouri John F. Anderson President, Farmland Industries, Inc., Kansas City, Missouri 1986 —DENVER BRANCH Appointed by Federal Reserve Bank Donald D. Hoffman Chairman of the Board and Chief Executive Officer, Central Bank 1984 of Denver, Denver, Colorado George S. Jenks Chairman and Chief Executive Officer, First New Mexico 1985 Bankshares Corporation, Albuquerque, New Mexico Roger L. Reisher3 Co-Chairman, Firstbank Holding Company of Colorado, 1986 Lake wood, Colorado Kenneth C. Naramore Chairman of the Board and Chief Executive Officer, Stockmen's 1986 Bank & Trust Company, Gillette, Wyoming Appointed by Board of Governors James E. Nielson1 President and Chief Executive Officer, JN, Inc., Cody, Wyoming 1984 Anthony W. Williams3 President, Williams, Turner and Holmes, P.C., Grand Junction, 1985 Colorado Ralph F. Cox Executive Vice President, Atlantic Richfield Company, Denver, 1986 Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin • March 1984 DISTRICT 10—CONTINUED TERM expires —OKLAHOMA CITY BRANCH DEC' 31 Appointed by Federal Reserve Bank Marcus R. Tower Vice Chairman of the Board and Chairman of the Credit Policy 1984 Committee, Bank of Oklahoma, N.A., Tulsa, Oklahoma William O. Alexander President and Chief Executive Officer, Continental Federal Savings 1984 & Loan Association, Oklahoma City, Oklahoma William H. Crawford President and Chief Executive Officer, First National Bank and 1985 Trust Company, Frederick, Oklahoma Appointed by Board of Governors John Snodgrass3 President and Trustee, Samuel Robert Noble Foundation, Inc., 1984 Ardmore, Oklahoma Patience Latting1-3 Oklahoma City, Oklahoma 1985 —OMAHA BRANCH Appointed by Federal Reserve Bank Donald J. Murphy Director, United States National Bank of Omaha, Omaha, 1984 Nebraska Charles H. Thorne3 Chairman and Chief Executive Officer, First Federal Savings and 1985 Loan Association of Lincoln, Lincoln, Nebraska William W. Cook, Jr. President, Beatrice National Bank and Trust Company, Beatrice, 1985 Nebraska Appointed by Board of Governors Robert G. Lueder1 Chairman, Lueder Construction Company, Omaha, Nebraska 1984 Kenneth Morrison3 President, Morrison-Quirk Grain Corp., Hastings, Nebraska 1985 DISTRICT 11—DALLAS Class A Lewis H. Bond Chairman of the Board and Chief Executive Officer, Texas 1984 American Bancshares Inc., Ft. Worth, Texas John P. Gilliam President and Chief Executive Officer, First National Bank in 1985 Valley Mills, Valley Mills, Texas Miles D. Wilson Chairman of the Board and President, The First National Bank of 1986 Bellville, Bellville, Texas Class B J. Wayland Bennett Associate Dean, College of Agricultural Sciences, Texas Tech 1984 University, Lubbock, Texas Robert Ted Enloe, III President, Lomas & Nettleton Financial Corporation, Dallas, 1985 Texas Kent Gilbreath Associate Dean, Hankamer School of Business, Baylor University, 1986 Waco, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 265 DISTRICT 11—CONTINUED Term expires Class C Dec 31 Robert D. Rogers1 President, Texas Industries, Inc., Dallas, Texas 1985 John V. James2 Retired Chairman, Dresser Industries, Inc., Dallas, Texas 1986 Vacancy —EL PASO BRANCH Appointed by Federal Reserve Bank Ernest M. Schur Chairman of the Executive Committee, InterFirst Bank Odessa, 1984 Odessa, Texas Gerald W. Thomas President, New Mexico State University, Las Cruces, New Mexico 1984 Stanley J. Jarmiolowski Chairman of the Board and Chief Executive Officer, InterFirst 1985 Bank El Paso, N.A., El Paso, Texas David L. Stone President, The Portales National Bank, Portales, New Mexico 1986 Appointed by Board of Governors Mary Carmen Saucedo1 Associate Superintendent, Central Area, El Paso Independent 1984 School District, El Paso, Texas John Sibley3 President, Delaware Mountain Enterprises, Carlsbad, New Mexico 1986 Peyton Yates3 President, Yates Drilling Company, Artesia, New Mexico 1985 —HOUSTON BRANCH Appointed by Federal Reserve Bank Ralph E. David Chairman of the Board and Chief Executive Officer, First Freeport 1984 National Bank, Freeport, Texas Thomas B. McDade Vice Chairman, Texas Commerce Bancshares, Inc., Houston, 1984 Texas Will E. Wilson Chairman of the Board and Chief Executive Officer, First Security 1985 Bank of Beaumont, N.A., Beaumont, Texas Marcella D. Perry3 President and Chief Executive Officer, Heights Savings 1986 Association, Houston, Texas Appointed by Board of Governors George V. Smith, Sr. President, Smith Pipe & Supply, Inc., Houston, Texas 1984 Robert T. Sakowitz Chairman of the Board and President, Sakowitz Inc., Houston, 1985 Texas Paul N. Howell1 Chairman of the Board, Howell Corporation, Houston, Texas 1986 —SAN ANTONIO BRANCH Appointed by Federal Reserve Bank Charles E. Cheever, Jr. Chairman of the Board, Broadway National Bank, San Antonio, 1984 Texas Joe D. Barbee President and Chief Executive Officer, Barbee-Neuhaus Implement 1984 Company, Weslaco, Texas George Brannies Chairman of the Board and President, The Mason National Bank, 1985 Mason, Texas C. Ivan Wilson3 Chairman and Chief Executive Officer, First City Bank of Corpus 1986 Christi, Corpus Christi, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin • March 1984 DISTRICT 11—CONTINUED Term expires —SAN ANTONIO BRANCH—CONTINUED Dec. 31 Appointed by Board of Governors Carlos A. Zuniga Partner, Zuniga Freight Services, Inc., Laredo, Texas 1984 Robert F. McDermott Chairman of the Board and President, United Services Automobile 1985 Association, San Antonio, Texas Lawrence L. Crum1 Professor of Banking and Finance, University of Texas at Austin, 1986 Austin, Texas DISTRICT 12—SAN FRANCISCO Class A Robert A. Young Chairman of the Board and President, Northwest National Bank, 1984 Vancouver, Washington Spencer F. Eccles Chairman, President, and Chief Executive Officer, First Security 1985 Corporation, Salt Lake City, Utah Rayburn S. Dezember3 Chairman, Central Pacific Corporation, Bakersfield, California 1986 Class B George H. Weyerhauser President and Chief Executive Officer, Weyerhauser Company, 1984 Tacoma, Washington Togo W. Tanaka Chairman, Gramercy Enterprises, Inc., Los Angeles, California 1985 John C. Hampton President, Willamina Lumber Company, Portland, Oregon 1986 Class C Alan C. Furth2 President, Southern Pacific Company, San Francisco, California 1984 Caroline Leonetti Chairman of the Board, Caroline Leonetti, Ltd., Hollywood, 1985 Ahmanson1 California Fred W. Andrew Chairman of the Board, President, and Chief Executive Officer, 1986 Superior Farming Company, Bakersfield, California —Los ANGELES BRANCH Appointed by Federal Reserve Bank Robert R. Dockson Chairman and Chief Executive Officer, California Federal Savings, 1984 Los Angeles, California Bram Goldsmith Chairman of the Board, City National Bank, Beverly Hills, 1985 California William L. Tooley Managing Partner, Tooley and Company, Los Angeles, California 1985 Harvey J. Mitchell3 President and Chief Executive Officer, Escondido National Bank, 1986 Escondido, California Appointed by Board of Governors Bruce M. Schwaegler1 President, Bullock's-Bullock's Wilshire, Los Angeles, California 1984 Thomas R. Brown, Jr. Chairman and Chief Executive Officer, Burr-Brown Research 1985 Corporation, Tucson, Arizona Lola M. McAlpin-Grant Attorney, Los Angeles, California 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 267 DISTRICT 12—CONTINUED Term expires —PORTLAND BRANCH Dec. 31 Appointed by Federal Reserve Bank Jack W. Gustavel President and Chief Executive Officer, The First National Bank of 1984 North Idaho, Coeur d'Alene, Idaho John A. Elorriaga Chairman and Chief Executive Officer, United States National 1984 Bank of Oregon, Portland, Oregon Herman C. Bradley, Jr. President and Chief Executive Officer, Tri-County Banking 1985 Company, Junction City, Oregon William S. Naito Vice President, Norcrest China Company, Portland, Oregon 1986 Appointed by Board of Governors Carolyn S. Chambers Executive Vice President and Treasurer, Liberty Communications, 1984 Inc., Eugene, Oregon G. Johnny Parks Northwest Regional Director, International Longshoremen's & 1985 Warehousemen's Union, Portland, Oregon Paul E. Bragdon1-3 President, Reed College, Portland, Oregon 1986 —SALT LAKE CITY BRANCH Appointed by Federal Reserve Bank Lela M. Ence Executive Director, University of Utah Alumni Association, 1984 Salt Lake City, Utah Fred C. Humphreys President and Chief Executive Officer, The Idaho First National 1985 Bank, Boise, Idaho John A. Dahlstrom Chairman of the Board, Tracy-Collins Bank and Trust Company, 1985 Salt Lake City, Utah Albert C. Gianoli President and Chairman of the Board, First National Bank of Ely, 1986 Ely, Nevada Appointed by Board of Governors Wendell J. Ashton1 Publisher, Deseret News, Salt Lake City, Utah 1984 David A. Nimkin Executive Director, Salt Lake Neighborhood Housing Services, 1985 Inc., Salt Lake City, Utah Robert N. Pratt3 President, White River Shale Oil Corp., Salt Lake City, Utah 1986 —SEATTLE BRANCH Appointed by Federal Reserve Bank John N. Nordstrom Co-Chairman of the Board, Nordstrom, Inc., Seattle, Washington 1984 G. Robert Truex, Jr. Chairman, Rainier Bancorporation and Rainier National Bank, 1984 Seattle, Washington William W. Philip Chairman, President and Chief Executive Officer, Puget Sound 1985 Bancorp, Tacoma, Washington Lonnie G. Bailey Executive Vice President and Chief Operating Officer, Farmers & 1986 Merchants Bank of Rockford, Spokane, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin • March 1984 DISTRICT 12—CONTINUED TERM expires —SEATTLE BRANCH—CONTINUED Dec.3i Appointed by Board of Governors John W. Ellis1 President and Chief Executive Officer, Puget Sound Power & Light 1984 Company, Bellevue, Washington Byron I. Mallot Chairman and Chief Executive Officer, Sealaska Corporation, 1985 Juneau, Alaska Carol A. Birkholz3 Managing Partner, Laventhol and Horwath, Seattle, Washington 1986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A18 All reporting banks A19 Banks with assets of $1 billion or more A3 Monetary aggregates and interest rates A20 Banks in New York City A4 Reserves of depository institutions, Reserve A21 Balance sheet memoranda Bank credit A22 Branches and agencies of foreign banks A5 Reserves and borrowings of depository A23 Gross demand deposits of individuals, institutions partnerships, and corporations A5 Federal funds and repurchase agreements of large member banks FINANCIAL MARKETS POLICY INSTRUMENTS A24 Commercial paper and bankers dollar acceptances outstanding A6 Federal Reserve Bank interest rates A24 Prime rate charged by banks on short-term A7 Reserve requirements of depository institutions business loans A8 Maximum interest rates payable on time and A25 Terms of lending at commercial banks savings deposits at federally insured institutions A26 Interest rates in money and capital markets A9 Federal Reserve open market transactions A27 Stock market—Selected statistics A28 Selected financial institutions—Selected assets and liabilities FEDERAL RESERVE BANKS A10 Condition and Federal Reserve note statements FEDERAL FINANCE All Maturity distribution of loan and security holdings A29 Federal fiscal and financing operations A30 U.S. Budget receipts and outlays A31 Federal debt subject to statutory limitation MONETAR Y AND CREDIT AGGREGATES A31 Gross public debt of U.S. Treasury—Types and ownership A12 Aggregate reserves of depository institutions A32 U.S. government securities dealers— and monetary base Transactions, positions, and financing A13 Money stock measures and components A33 Federal and federally sponsored credit A14 Bank debits and deposit turnover agencies—Debt outstanding A15 Loans and securities of all commercial banks COMMERCIAL BANKING INSTITUTIONS A16 Major nondeposit funds A17 Assets and liabilities, last-Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • March 1984 SECURITIES MARKETS AND A54 Foreign branches of U.S. banks—Balance sheet CORPORATE FINANCE data A56 Selected U.S. liabilities to foreign official A34 New security issues—State and local institutions governments and corporations A35 Open-end investment companies—Net sales and asset position REPORTED BY BANKS IN THE UNITED STATES A35 Corporate profits and their distribution A36 Nonfinancial corporations—Assets and A56 Liabilities to and claims on foreigners liabilities A57 Liabilities to foreigners A36 Total nonfarm business expenditures on new A59 Banks' own claims on foreigners plant and equipment A60 Banks' own and domestic customers' claims on A37 Domestic finance companies—Assets and foreigners liabilities and business credit A60 Banks' own claims on unaffiliated foreigners A61 Claims on foreign countries—Combined domestic offices and foreign branches REAL ESTATE A38 Mortgage markets REPORTED BY NONBANKING BUSINESS A39 Mortgage debt outstanding ENTERPRISES IN THE UNITED STATES A62 Liabilities to unaffiliated foreigners CONSUMER INSTALLMENT CREDIT A63 Claims on unaffiliated foreigners A40 Total outstanding and net change A41 Terms SECURITIES HOLDINGS AND TRANSACTIONS A64 Foreign transactions in securities FLOW OF FUNDS A65 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets INTEREST AND EXCHANGE RATES A65 Discount rates of foreign central banks Domestic Nonfinancial Statistics A66 Foreign short-term interest rates A66 Foreign exchange rates A44 Nonfinancial business activity—Selected measures A44 Output, capacity, and capacity utilization A67 Guide to Tabular Presentation, A45 Labor force, employment, and unemployment Statistical Releases, and A46 Industrial production—Indexes and gross value Special Tables A48 Housing and construction A49 Consumer and producer prices A50 Gross national product and income SPECIAL TABLES A51 Personal income and saving A68 Commercial bank assets and liabilities, September 30, 1983 International Statistics A74 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1983 A52 U.S. international transactions—Summary A53 U.S. foreign trade A53 U.S. reserve assets A53 Foreign official assets held at Federal Reserve Banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES A Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1983 1983 Q1 Q2 Q3 Q4 Aug. Sept. Oct. Nov. Dec. Reserves of depository institutions 1 Total 4.1 12.4 4.7 -2.1 -3.4 .7 -3.0 -6.9 5.8 2 Required 3.8 12.6 4.6 -2.6 -1.5 -1.5 -3.2 -7.8 4.9 3 Nonborrowed 3.5 6.2 1.8 4.9 -6.6 4.2 16.7 -9.1 10.3 4 Monetary base2 9.5 11.1 7.6 7.4 6.4 9.1 7.6 6.1 6.4 Concepts of money and liquid assets3 5 Ml 14.1 12.2 8.9 2.1 2.8 .9 1.9 .9 6.5 6 M2 20.3 10.1 7.8 7.0 6.0 4.8 9.1 7.2 5.5 7 M3 10.2 8.1 8.4 9.0 8.6 7.6 8.6 11.9 6.6 8 L 10.8 9.8 10.8 n.a. 11.0 8.4 6.6 n.a. n.a. Time and savings deposits Commercial banks 9 Total 14.2 3.0 6.1 7.2 5.7 6.0 3.1 13.8 9.7 10 Savings4 -43.4 -14.8 -6.8 -9.5 -11.2 -8.7 -10.5 -7.9 -11.5 11 Small-denomination time5 -48.5 24.1 14.9 20.1 22.4 17.3 23.1 21.7 9.3 12 Large-denomination time6 -53.9 -24.8 -8.5 -4.2 -2.9 -3.8 -21.6 11.2 14.5 13 Thrift institutions7 12.1 16.0 13.7 11.5 13.5 12.5 13.0 9.7 5.9 14 Total loans and securities at commercial banks8 10.9 9.9 8.6 12.5 11.2 4.9 9.9 13.7 12.9 Interest rates (levels, percent per annum) 1983 1983 1984 Q1 Q2 Q3 Q4 Oct. Nov. Dec. Jan. Feb. SSShhhooorrrttt---ttteeerrrmmm rrraaattteeesss 1 1 1 1 1 1 1 1 1 111 6 7 8 6 7 8 6 7 8 555 CCC TTT DDD FFF rrr eee ooo iii eee sss ddd mmm ccc aaa eee ooo sss mmm rrr uuu uuu aaa eee rrr lll nnn yyy rrr ttt fff ccc uuu iii bbb www aaa nnn iii lll iii lll ddd nnn lll ppp sss sss ddd 999 aaa ooo ((( ppp 333 www eee ---mmm rrr bbb ((( ooo ooo 333 nnn rrr --- ttt rrr mmm hhh ooo ,,, www ooo nnn sss iii eee nnn ttthhh ccc ggg ))) ooo 111 111 000 nnn 111 ''' ddd 111222 aaa rrryyy mmmaaarrrkkkeeettt)))111111 8 8 8 8 . . . . 3 1 5 6 4 1 0 5 8 8 8 8 . . . . 6 5 4 8 2 0 0 0 9 9 8 9 . . . . 1 3 5 4 4 4 0 6 8 8 9 9 . . . . 2 5 8 4 1 0 0 3 8 9 8 8 . . . . 6 5 9 4 4 0 9 8 8 9 9 8 . . . . 5 7 3 1 0 6 4 0 9 8 9 9. . . . 5 5 0 4 3 0 0 7 9 8 8 9 . . . . 5 9 2 5 0 0 0 6 8 9 9 9 . . . . 3 5 0 5 2 0 9 9 LLLooonnnggg---ttteeerrrmmm rrraaattteeesss BBBooonnndddsss 222 111 000 999 SSS UUU ttt ... aaa SSS ttteee ... ggg aaa ooo nnn vvv ddd eee lll rrr ooo nnn ccc mmm aaalll eee nnn ggg ttt ooo 111333 vvv eeerrrnnnmmmeeennnttt111 1 9 0 . . 4 8 3 7 1 9 0 . . 2 8 3 1 1 9 1 . . 6 7 1 9 1 9 1 . . 7 9 7 0 1 9 1 . . 6 7 6 7 1 9 1 . . 7 9 5 2 1 9 2 . . 8 0 9 2 1 9 1 . . 6 8 3 2 1 9 2 . . 6 0 4 0 222111 AAA---rrraaattteeeddd uuutttiiillliiitttyyy (((rrreeeccceeennntttlllyyy---oooffffffeeerrreeeddd))) 12.70 12.12 12.96 13.14 12.43 12.64 12.62 12.99 13.05 222222 CCCooonnnvvveeennntttiiiooonnnaaalll mmmooorrrtttgggaaagggeeesss 13.26 13.16 13.83 13.47 13.52 13.48 13.41 13.28 13.31 A Data appearing in this issue of the BULLETIN are reprinted because 4. Savings deposits exclude NOW and ATS accounts at commercial banks historical data on the money stock and reserves were not available at the time of and thrifts and CUSD accounts at credit unions. publication. 5. Small-denomination time deposits—including retail RPs—are those issued 1. Unless otherwise noted, rates of change are calculated from average in amounts of less than $100,000. amounts outstanding in preceding month or quarter. 6. Large-denomination time deposits are those issued in amounts of $100,000 2. Includes reserve balances at Federal Reserve Banks in the current week or more. plus vault cash held two weeks earlier used to satisfy reserve requirements at all 7. Savings and loan associations, mutual savings banks, and credit unions. depository institutions plus currency outside the U.S. Treasury, Federal Reserve 8. Changes calculated from figures shown in table 1.23. Beginning December Banks, the vaults of depository institutions, and surplus vault cash at depository 1981, growth rates reflect shifts of foreign loans and securities from U.S. banking institutions. offices to international banking facilities. 3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal 9. Averages of daily effective rates (average of the rates on a given date Reserve Banks, and the vaults of commercial banks; (2) travelers checks of weighted by the volume of transactions at those rates). nonbank issuers; (3) demand deposits at all commercial banks other than those 10. Rate for the Federal Reserve Bank of New York. due to domestic banks, the U.S. government, and foreign banks and official 11. Quoted on a bank-discount basis. institutions less cash items in the process of collection and Federal Reserve float; 12. Unweighted average of offering rates quoted by at least five dealers. and (4) negotiable order of withdrawal (NOW) and automatic transfer service 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) 14. Bond Buyer series for 20 issues of mixed quality. accounts, and demand deposits at mutual savings banks. 15. Compilation of the Federal Reserve. This series is an estimate of the yield M2: Ml plus money market deposit accounts (MMDAs), savings and small- on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of denomination time deposits at all depository institutions, overnight repurchase call protection. This table previously showed the rate on newly-issued Aaa utility agreements at commercial banks, overnight Eurodollars held by U.S. residents bonds, but this series was discontinued in January 1984 owing to the lack of Aaa other than banks at Caribbean branches of member banks, and balances of money issues. market mutual funds (general purpose and broker/dealer). 16. Average rates on new commitments for conventional first mortgages on M3: M2 plus large-denomination time deposits at all depository institutions new homes in primary markets; from Department of Housing and Urban and term RPs at commercial banks and savings and loan associations and balances Development. of institution-only money market mutual funds. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents NOTE. Revisions in reserves of depository institutions reflect the transitional other than banks, bankers acceptances, commercial paper, Treasury bills and phase-in of reserve requirements as specified in the Monetary Control Act of other liquid Treasury securities, and U.S. savings bonds. 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 DomesticN onfinancial Statistics • March 1983 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT A Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending FFFaaaccctttooorrrsss 1983 1984 1983 1984 Nov. Dec. Jan.? Dec. 14 Dec. 21 Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25P SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 167,773 171,695 173,591 169,687 173,426 172,966 174,845 173,499 171,238 170,769 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 148,005 151,679 152.481 150,671 153,770 151,498 153,555 153,696 151,822 151,266 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 147,775 151,517 151.482 150,671 153,770 151,498 151,120 153,162 151,822 150,586 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 230 162 999 0 0 0 2.435 534 0 680 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss 8,762 8,673 8,709 8,646 8,645 8,645 8,920 8,662 8,635 8,691 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,714 8,646 8,630 8,646 8,645 8,645 8,645 8,642 8,635 8,626 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 48 27 79 0 0 0 275 20 0 65 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 54 34 76 0 0 0 413 7 0 10 99999 LLLLLoooooaaaaannnnnsssss 912 745 726 629 1,054 753 1,291 563 781 505 1111100000 FFFFFllllloooooaaaaattttt 1,592 2,294 2,843 1,583 1,655 3,592 2,119 1,946 1,298 1,439 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 8,448 8,270 8,756 8,159 8,301 8,479 8,547 8,624 8,703 8,859 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,123 11,123 11,120 11,123 11,123 11,123 11,121 11,121 11,121 11,120 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt.................... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 13,786 13,786 13,786 13,786 13,786 13,786 12,786 13,786 13,786 13,786 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 165,317 168,284 167,006 167,713 168,295 169,685 170,156 168,979 167,168 165,418 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 481 471 477 473 473 471 462 467 478 481 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,905 3,591 4,479 3,266 4,108 3,729 3.436 3,458 3,118 5,252 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 238 220 216 197 237 224 210 216 225 216 1111199999 OOOOOttttthhhhheeeeerrrrr 596 594 489 581 620 528 755 471 465 427 2222200000 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt............... 1,237 1,477 1,941 1,484 1,501 1,348 1,531 2,422 2,105 1,973 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 5,584 5,598 5,617 5,617 5,682 5,654 5,514 5,566 5,735 5,573 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaaccccccccccooooouuuuunnnnntttttsssss22222 20,943 20,986 22,889 19,883 22,036 20,854 22,305 21,443 21,467 20,951 End-of-month figures Wednesday figures 1983 1984 1983 1984 Nov. Dec. Jan.'' Dec. 14 Dec. 21 Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25P SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 168,481 172,460 169,225 171,971 174,928 174,318 179,211 178,565 176,275 174,267 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 149,439 151,942 150,254 150,055 152,379 152,570 157,519 153,740 153,538 151,914 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 149,439 150,558 150,254 150,055 152,379 152,570 153,147 153,740 153,538 149,699 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 1,384 0 0 0 0 4,372 0 0 2,215 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss 8,647 8,853 8,605 8,645 8,645 8,645 8,974 8,635 8,635 8,825 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,647 8,645 8,605 8,645 8,645 8,645 8,645 8,635 8,635 8,605 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 208 0 0 0 0 329 0 0 220 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 418 0 0 0 0 436 0 0 35 3333311111 LLLLLoooooaaaaannnnnsssss 1,057 918 418 2.431 1,132 1,311 1,217 2,215 3,362 646 3333322222 FFFFFllllloooooaaaaattttt 898 1,563 846 2,522 4,232 3,055 2,296 5,252 1,880 3,795 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 8,438 8,766 9,102 8,318 8,540 8,737 8,769 8,723 8,860 9,052 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,123 11,121 11,120 11,123 11,123 11,123 11,121 11,121 11,120 11,120 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ..... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 13,786 13,786 13,786 13,786 13,786 13,786 13,786 13.786 13,786 13,786 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 166,682 170,005 164,514 168,146 169,033 170,616 170,229 168,291 166,619 164,786 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 475 463 484 473 472 462 462 468 480 484 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 2,896 3,661 7,153 2,839 4,621 3,636 3,104 3,258 3,921 7,331 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 360 191 252 232 287 263 198 226 171 198 4444411111 OOOOOttttthhhhheeeeerrrrr 610 845 410 540 531 597 474 485 431 435 4444422222 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt............... 983 1,013 1,047 1,018 1,023 1,018 1,014 1,020 1,034 1,049 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 5,432 5,394 5,625 5.432 5,499 5,496 5,552 5,554 5,446 5,445 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaaccccccccccooooouuuuunnnnntttttsssss22222 20,569 20,413 19,263 22,817 22,989 21,756 27,702 28.787 27,696 24,062 • Data appearing in this issue of the BULLETIN are reprinted because historical pledged with Federal Reserve Banks—and excludes (if any) securities sold and data on the money stock and reserves were not available at the time of scheduled to be bought back under matched sale-purchase transactions, publication. 2. Excludes required clearing balances. 1. Includes securities loaned—fully guaranteed by U.S government securities 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 1984 Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. Jan.? 1 Reserve balances with Reserve Banks' 26,163 24,804 21,808 22,139 21,965 20,585 21,059 20,943 20,986 22,889 2 Total vault cash (estimated) 19,538 20,392 20,098 20,413 20,035 20,798 20,471 20,558 20,755 22,548 3 Vault cash at institutions with required reserve balances2 13,577 14,292 13,593 13,647 13,656 13,927 13,866 14,014 14,597 14,784 4 Vault cash equal to required reserves at other institutions 2,178 2,757 3,014 3,161 3,039 3,404 3,212 3,187 3,311 4,002 5 Surplus vault cash at other institutions3 3,783 3,343 3,491 3,605 3,340 3,467 3,393 3,357 2,847 3,762 6 Reserve balances + total vault cash4 45,701 45,196 41,906 42,552 42,000 41,383 41,530 41,501 41,741 45,437 7 Reserve balances + total vault cash used to satisfy reserve requirements4 5 41,918 41,853 38,415 38,947 38,660 37,916 38,137 38,144 38,894 41,675 8 Required reserves (estimated) 41,606 41,353 37,935 38,440 38,214 37,418 37,632 37,615 38,333 39,508 9 Excess reserve balances at Reserve Banks4 6 312 500 480 507 446 498 505 529 561 2,167 10 Total borrowings at Reserve Banks 642 697 1,714 1,382 1,573 1,441 837 912 745 726 11 Seasonal borrowings at Reserve Banks 53 33 121 172 198 191 142 119 96 86 12 Extended credit at Reserve Banks 149 187 964 572 490 515 255 6 2 4 Weekly averages of daily figures for week ending 1983 1984 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25p 13 Reserve balances with Reserve Banks' 21,935 21,127 20,605 19,883 22,036 20,854 22,305 21,443 21,467 20,951 14 Total vault cash (estimated) 19,190 21,036 20,929 20,348 20,383 21,292 20,912 21,508 2244,,002277 2233,,113377 15 Vault cash at institutions with required reserve balances2 13,650 14,409 14,355 14,715 14,422 14,879 14,637 14,841 15,253 15,637 16 Vault cash equal to required reserves at other institutions 2,672 3,298 3,216 3,843 2,963 3,270 3,198 3,378 4,364 3,664 17 Surplus vault cash at other institutions3 2,868 3,329 3,358 1,790 2,998 3,143 3,077 3,289 4,410 3,836 18 Reserve balances + total vault cash4 41,125 42,163 41,534 40,231 42,419 42,146 43,217 42,951 45,494 44,088 19 Reserve balances + total vault cash used to satisfy reserve requirements4'5 38,257 38,834 38,176 38,441 39,421 39,003 40,140 39,662 41,084 40,252 20 Required reserves (estimated) 37,958 38,198 37,671 37,954 38,776 38,567 39,182 38,980 40,609 39,672 21 Excess reserve balances at Reserve Banks4,6 299 636 505 487 645 436 958 682 475 580 22 Total borrowings at Reserve Banks 813 877 438 629 1,054 753 1,291 563 781 505 23 Seasonal borrowings at Reserve Banks 123 123 89 89 100 115 73 69 79 96 24 Extended credit at Reserve Banks 4 13 2 1 1 3 5 2 4 6 • Data appearing in this issue of the BULLETIN are reprinted because historical a graduated basis over a 24-month period when a nonmember bank merged into an data on the money stock and reserves were not available at the time of existing member bank, or when a nonmember bank joins the Federal Reserve publication. System. For weeks for which figures are preliminary, figures by class of bank do 1. As of Aug. 13, 1981, excludes required clearing balances of all depository not add to total because adjusted data by class are not available. institutions. 5. Reserve balances with Federal Reserve Banks, which exclude required 2. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by clearing balances plus vault cash at institutions with required reserve balances member banks. plus vault cash equal to required reserves at other institutions. 3. Total vault cash at institutions without required reserve balances less vault 6. Reserve balances with Federal Reserve Banks, which exclude required cash equal to their required reserves. clearing balances plus vault cash used to satisfy reserve requirements less 4. Adjusted to include waivers of penalties for reserve deficiencies in accord- required reserves. (This measure of excess reserves is comparable to the old ance with Board policy, effective Nov. 19, 1975, of permitting transitional relief on excess reserve concept published historically.) 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1984 week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Feb. 6 Feb. 13 Feb. 20 Feb. 27 One day and continuing contract 1 Commercial banks in United States 56,748' 60,936' 57,939' 52,795' 53,310 57,860 59,206 58,037 53,884 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 19,684' 21,380' 22,974 24,970 23,324 23,998 26,065 25,325 24,740 3 Nonbank securities dealers 5,720 5,421 5,866 4,790 5,231 5,228 5,318 6,278 5,784 4 All other 25,886' 27,179 26,483 28,271' 27,630 26,411 26,569 28,316 27,133 All other maturities 66,,445588'' 5,933' 66,,556600'' 6,240' 66,,552222 66,,116633 66,,882211 66,,227733 66,,886622 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 99,,773377 8,927 99,,002266 8,759 99,,330033 99,,009977 99,,661144 99,,006655 99,,229988 7 Nonbank securities dealers 66,,440000 6,190 66,,775566 7,402' 77,,660033 77,,446633 88,,005588 77,,111144 77,,663366 8 All other 99,,775566 8,316 99,,778866 9,666 99,,883300 99,,881111 1100,,331144 99,,118822 99,,559999 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 22,904' 24,576' 24,528 23,568' 23,819 25,799 26,397 27,598 23,610 10 Nonbank securities dealers 4,367 4,862 4,291 4,068 4,784 5,057 5,254 6,798 5,879 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 DomesticN onfinancial Statistics • March 1983 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 2/29/84 date rate 2/29/84 rate 2/29/84 rate 2/29/84 rate Boston 8Vi 12/14/82 9 8Vi 9 9Vi 10 lO'/i 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... 81/2 12/14/82 9 8Vi 9 9 Vi 10 lOVi 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 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. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec . 31, 1973 m m 1978— July 3 7-7 V* 71/4 11998811—— MMaayy 55 13-14 14 11997744—— AApprr.. 25 7Vi-8 8 10 7'/4 71/4 88 14 14 30 8 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 Vi 8'/i Dec. 4 12 12 20 8Vi 8 Vi 1975— Jan. 6 7!/4-73/4 73/4 Nov. 1 8Vi-9Vi 9'/2 1982— July 20 llVi-12 11'/! 10 7'/4-73/4 71/4 3 91/2 91/2 23 11 Vi llVi 24 71/4 71/4 Aug. 2 11-111/6 11 Feb. 5 63/4-7 «/4 63/4 1979—July 20 10 10 3 11 11 7 63/4 63/4 Aug. 17 10-10'/2 10'/2 16 lOVi lOVi Mar. 10 6'/t-63/4 6'/4 20 10'/2 10'/2 27 10-10'zi 10 14 6'/4 6V4 Sept. 19 101/2-11 11 30 10 10 MMaayy 16 6-6>/4 6 21 11 11 Oct. 12 9Vi-10 91/2 23 6 6 Oct. 8 11-12 12 13 9Vi 9Vi 10 12 12 Nov. 22 9-91/2 9 1976— Jan. 19 51/2-6 516 26 9 9 23 51h 5Vi 1980— Feb. 15 12-13 13 Dec. 14 8Vi-9 9 Nov. 22 51/4-5 Vi 51/4 19 13 13 15 8'/i-9 81/2 26 51/4 51/4 May 29 12-13 13 17 8Vi 81/2 30 12 12 11997777—— AAuugg.. 30 51/4-53/4 51/4 June 13 11-12 11 31 51/4-53/4 53/4 16 11 11 Sept. 2 53/4 53/4 July 28 10-11 10 Oct. 26 6 6 29 10 10 Sept. 26 11 11 1978— Jan. 9 6-6'A 6V4 Nov. 17 12 12 MMaayy 2 1 1 0 1 2 6> 6 7 V / ! 6 -7 6 1 1 ! h Dec. 5 8 12 1 - 3 1 3 1 1 3 3 In effect Feb. 29, 1984 8'/2 8V2 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 1981, and 1982. to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for applying the surcharge was changed from a calendar quarter to a moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyypp ddee ee pp oo oo ff ss ii dd tt ee ii pp nn oo ttee ss rr ii vv tt,, aa ll aa nndd Monetary Control Act TTyy dd pp ee ee pp oo oo ss ff iitt dd ee iinn pp tt oo ee 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 9Vi 12/30/76 Over $28.9 million 1122 1122//2299//8833 $10 million-$100 million 11V4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'/4 12/30/76 By original maturity Less than 1 Vi years 3 10/6/83 Time and savings2>3 1 Vi years or more 0 10/6/83 Savings 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 2l/i 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 7Vi 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 Domestic Nonfinancial Statistics • March 1983 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 Feb. 29, 1984 In effect Feb. 29, 1984 Type of deposit Percent Effective date Effective date 1 Savings 5'/2 1/1/84 51/2 7/1/79 2 Negotiable order of withdrawal accounts 51/4 12/31/80 5'A 12/31/80 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 5'/2 1/1/84 5'A 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 1984 TTyyppee ooff ttrraannssaaccttiioonn 11998811 11998822 11998833 July Aug. Sept. Oct. Nov. Dec. Jan. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 13,899 17,067 18,888 666 1,768 3,184 309 11,,443355 33,,669955 00 2 Gross sales 6,746 8,369 3,420 0 289 214 0 0 0 1,967 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,816 3,000 2,400 0 0 500 0 700 0 1,300 Others within 1 year 5 Gross purchases 317 312 484 156 0 0 0 115555 0 00 6 Gross sales 23 0 0 0 0 0 0 0 0 0 7 Maturity shift 13,794 17,295 18,887 1,162 2,212 902 529 2,828 915 573 8 Exchange -12,869 -14,164 -16,553 0 -5,344 -753 -636 -2,930 0 1,530 9 Redemptions 0 0 87 0 0 0 0 0 0 0 I to 5 years 10 Gross purchases 1,702 1,797 1,896 481 0 0 0 882200 00 00 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -10,299 -14,524 -15,533 -1,121 -2,212 -902 -256 -1,684 -915 -487 13 Exchange 10,117 11,804 11,641 0 3,130 753 636 1,7% 0 1,530 5 to 10 years 14 Gross purchases 393 388 890 215 0 0 0 334499 00 00 15 Gross sales 0 0 0 0 0 0 0 0 0 300 16 Maturity shift -3,495 -2,172 -2,450 -41 516 0 -273 -250 0 -86 17 Exchange 1,500 2,128 2,950 0 1,300 0 0 700 0 0 Over 10 years 18 Gross purchases 379 307 383 124 0 0 0 115511 00 00 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -601 -904 0 -516 0 0 -894 0 0 21 Exchange 1,253 234 1,962 0 914 0 0 434 0 0 All maturities 22 Gross purchases 16,690 19,870 22,540 1,642 1,768 3,184 309 2,909 3,695 00 7.3 Gross sales 6,769 8,369 3,420 0 289 214 0 0 0 2,267 24 Redemptions 1,816 3,000 2,487 0 0 500 0 700 0 1,300 Matched transactions 75 Gross sales 589,312 543,804 578,591 40,934 45,989 48,193 53,751 56,858 5588,,997799 5544,,883333 26 Gross purchases 589,647 543,173 576,908 43,037 44,480 47,667 53,367 57,991 56,404 58,096 Repurchase agreements 77 Gross purchases 79,920 130,774 105,971 7,816 2,263 37,211 19,247 33,,225577 33,,664444 1144,,224455 28 Gross sales 78,733 130,286 108,291 8,978 0 30,223 28,499 3,257 2,260 15,629 29 Net change in U.S. government securities 9,626 8,358 12,631 2,583 2,234 8,933 -9,326 3,342 2,504 -1,688 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 494 0 0 0 00 0 00 00 00 00 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 108 189 292 10 138 5 6 84 2 40 Repurchase agreements 33 Gross purchases 13,320 18,957 8,833 558 189 22,,887711 11,,996600 449977 663344 993311 34 Gross sales 13,576 18,638 9,213 773 0 2,510 2,510 497 426 1,139 35 Net change in federal agency obligations 130 130 -672 -225 51 356 -557 -84 206 -248 BANKERS ACCEPTANCES 36 Repurchase agreements, net -582 1,285 -1,062 -203 209 913 -1,122 0 418 -418 37 Total net change in System Open Market Account 9,175 9,773 10,897 2,155 2,493 10,203 -11,005 3,258 3,128 -2,354 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • March 1983 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAccccoouunntt 1984 1983 1984 Feb. 1 Feb. 8 Feb. 15 Feb. 22 Feb. 29 Dec. Jan. Feb. Consolidated condition statement ASSETS 1 Gold certificate account 11,120 11,119 11,118 11,117 11,116 11,121 11,120 11,116 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 499 518 530 531 534 415 498 534 Loans 4 To depository institutions 1,292 252 2,218 376 1,020 918 418 1,020 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 00 00 00 441188 00 00 Federal agency obligations 7 Bought outright 8,585 8,585 8,568 8,568 8,568 8,645 8,605 88,,556688 8 Held under repurchase agreements 0 0 0 0 0 208 0 0 U.S. government securities Bought outright 9 Bills 66,224 64,305 63,123 64,455 56,399 6655,,881100 65,806 5566,,339999 10 Notes 63,634 63,634 62,921 62,921 62,921 63,934 63,634 62,921 11 Bonds 20,814 20,814 21,527 21,527 21,527 20,814 20,814 21,527 12 Total bought outright1 150,672 148,753 147,571 148,903 140,847 150,558 150,254 140,847 13 Held under repurchase agreements 0 0 0 0 0 1,384 0 0 14 Total U.S. government securities 150,672 148,753 147,571 148,903 140,847 151,942 150,254 140,847 15 Total loans and securities 160,549 157,596 158,357 157,847 150,435 162,131 159,277 150,435 16 Cash items in process of collection 9,083 8,043 10,412 11,672 11,193 9,708 10,383 11,193 17 Bank premises 548 549 549 549 549 547 548 549 Other assets 18 Denominated in foreign currencies2 3,700 3,703 3,705 3,708 3,915 3,688 3,700 3,915 19 All other3 5,070 4,904 3,764 3,828 3,879 4,531 4,854 3,879 20 Total assets 195,187 191,044 193,053 193,870 186,239 196,759 194,998 186,239 LIABILITIES 21 Federal Reserve notes 151,804 152,537 152,929 152,824 152,383 157,097 151,711 152,383 Deposits 22 To depository institutions 22,615 20,737 20,766 19,209 16,330 21,446 20,361 1166,,333300 23 U.S. Treasury—General account 6,682 4,791 4,877 5,693 3,226 3,661 7,153 3,226 24 Foreign—Official accounts 196 210 260 195 247 191 252 247 25 Other 437 603 607 524 498 825 359 498 26 Total deposits 29,930 26,341 26,510 25,621 20,301 26,123 28,125 20,301 27 Deferred availability cash items 7,916 6,823 8,325 10,145 8,000 8,145 9,537 8,000 28 Other liabilities and accrued dividends4 2,340 2,106 2,033 2,026 2,099 2,464 2,188 2,099 29 Total liabilities 191,990 187,807 189,797 190,616 182,783 193,829 191,561 182,783 CAPITAL ACCOUNTS 30 Capital paid in 1,470 1,472 1,478 1,478 1,482 1,465 1,468 1,482 31 Surplus 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 32 Other capital accounts 262 300 313 311 509 0 504 509 33 Total liabilities and capital accounts 195,187 191,044 193,053 193,870 186,239 196,759 194,998 186,239 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 112,407 112,430 116,680 116,650 119,391 114,619 112,311 119,391 Federal Reserve note statement 35 Federal Reserve notes outstanding 180,707 181,088 181,591 181,988 182,185 178,875 180,570 182,185 36 LESS: Held by bank5 28,903 28,567 28,662 29,164 29,838 21,778 28,859 29,838 37 Federal Reserve notes, net 151,804 152,521 152,929 152,824 152,347 157,097 151,711 152,347 Collateral held against notes net: 38 Gold certificate account 11,120 11,119 11,118 11,117 11,116 11,121 11,120 11,116 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 136,066 136,784 137,193 137,089 136,613 141,358 135,973 136,613 42 Total collateral 151,804 152,521 152,929 152,824 152,347 157,097 151,711 152,347 1. Includes securities loaned—fully guaranteed by U.S. government securities 4. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank 2. Assets shown in this line are revalued monthly at market exchange rates. are exempt from the collateral requirement. 3. Includes special investment account at Chicago of Treasury bills maturing within 90 days. 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 1984 1983 1984 Feb. 1 Feb. 8 Feb. 15 Feb. 22 Feb. 29 Dec. 30 Jan. 31 Feb. 29 1 Loans—Total 1,292 252 2,218 376 1,020 918 418 1,020 2 Within 15 days 1,246 219 2,198 359 941 881 387 941 3 16 days to 90 days 46 33 20 17 79 37 31 79 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 418 0 0 6 Within 15 days 0 0 0 0 0 418 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 150,672 148,753 147,571 148,903 140,847 151,942 150,254 140,847 10 Within 15 days' 9,501 10,806 6,449 8,530 4,499 2,700 6,295 4,499 11 16 days to 90 days 32,749 29,716 30,242 31,242 25,076 38,247 35,451 25,076 1? 91 days to 1 year 43,160 42,969 43,548 41,799 43,925 45,475 43,246 43,925 n Over 1 year to 5 years 34,149 34,149 34,506 34,506 34,521 34,021 34,149 34,521 14 Over 5 years to 10 years 13,099 13,099 14,196 14,196 14,196 13,485 13,099 14,196 15 Over 10 years 18,014 18,014 18,630 18,630 18,630 18,014 18,014 18,630 16 Federal agency obligations—Total 8,585 8,585 8,568 8,568 8,568 8,853 8,605 8,568 17 Within 15 days' 118 118 176 176 162 386 212 162 18 16 days to 90 days 779 779 643 643 688 598 685 688 19 91 days to 1 year 1,676 1,676 1,654 1,654 1,587 1,937 1,696 1,587 20 Over 1 year to 5 years 4,290 4,290 4,373 4,373 4,378 4,196 4,290 4,378 21 Over 5 years to 10 years 1,319 1,319 1,319 1,319 1,350 1,333 1,319 1,350 22 Over 10 years 403 403 403 403 403 403 403 403 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 Nonfinancial Statistics • March 1983 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE • Billions of dollars, averages of daily figures 1983 1980 1981 1982 1983 IItteemm Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS1 1 Total reserves2 37.13 37.61 37.80 37.69 37.62 37.41 37.59 2 Nonborrowed reserves 30.77 33.11 35.60 36.82 36.18 35.98 36.35 36.15 36.28 36.78 36.50 36.82 3 Required reserves.... 31.94 33.43 35.73 37.03 36.68 37.13 37.29 37.25 37.22 37.12 36.88 37.03 4 Monetary base3 151.1 158.8 171.1 186.5 178.8 180.3 181.1 182.1 183.4 184.6 185.5 186.5 Not seasonally adjusted 5 Total reserves2 33.4 34.61 36.96 38.37 36.64 36.79 37.34 37.06 37.39 37.68 37.69 38.37 6 Nonborrowed reserves 31.72 33.98 36.33 37.60 35.69 35.15 35.89 35.52 35.95 37.84 36.79 37.50 7 Required reserves 32.89 34.29 36.46 37.81 36.19 36.31 36.83 36.62 36.89 37.18 37.17 37.81 8 Monetary base3 154.4 161.9 174.4 190.0 177.8 179.6 181.7 181.8 182.9 184.4 186.7 190.0 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS4 9 Total reserves2 40.66 41.92 41.85 38.89 38.28 38.42 38.95 38.66 37.92 38.14 38.14 38.89 10 Nonborrowed reserves 38.97 41.29 41.22 38.12 37.33 36.78 37.50 37.12 36.48 37.29 37.24 38.12 11 Required reserves 40.15 41.60 41.35 38.33 37.83 37.93 38.44 38.21 37.42 37.63 37.62 38.33 12 Monetary base3 162.5 169.7 179.3 190.6 179.8 181.6 183.7 183.8 183.5 184.9 187.2r 190.6 • Data appearing in this issue of the BULLETIN are reprinted because historical $245 million; Sept. 3, 1981, a reduction of $1.1 billion; Nov. 12, 1981, an increase data on the money stock and reserves were not available at the time of of $210 million; Jan. 14,1982, a reduction of $60 million; Feb. 11, 1982 an increase publication. of $170 million; Mar. 4,1982, an estimated reduction of $2.0 billion; May 13, 1982, 1. Reserve aggregates include required reserves of member banks and Edge an estimated increase of $150 million; Aug. 12, 1982 an estimated increase of $140 Act corporations and other depository institutions. Discontinuities associated million; and Sept. 2, 1982, an estimated reduction of $1.2 billion; Oct. 28, 1982 an with the implementation of the Monetary Control Act, the inclusion of Edge Act estimated reduction of $100 million; Dec. 23, 1982 an estimated reduction of $800 corporation reserves, and other changes in Regulation D have been removed. million; Mar. 3, 1983 an estimated reduction of $1.9 billion; and Sept. 1, 1983, an 2. Reserve balances with Federal Reserve Banks plus vault cash at institutions estimated reduction of $1.2 billion beginning with the week ended Dec. 23, 1981, with required reserve balances plus vault cash equal to required reserves at other reserve aggregates have been reduced by shifts of reservable liabilities to IBFs. institutions. On the basis of reports of liabilities transferred to IBFs by U.S. commercial banks 3. Consists of reserve balances and service-related balances and adjustments at and U.S. agencies and branches of foreign banks, it is estimated that required Federal Reserve Banks in the current week plus vault cash held two weeks earlier reserves were lowered on average by $60 million to $90 million in December 1981 used to satisfy reserve requirements at all depository institutions plus currency and $180 million to $230 million in January 1982, mostly reflecting a reduction in outside the U.S. Treasury, Federal Reserve Banks, the vaults of depository reservable Eurocurrency transactions. Also, beginning with the week ending institutions, and surplus vault cash at depository institutions. Apr. 20, 1983, required reserves were reduced an estimated $80 million as a result 4. Reserves of depository institutions series reflect actual reserve requirement of the elimination of reserve requirements on nonpersonal time deposits with percentages with no adjustments to eliminate the effect of changes in Regulation D maturities of 2'/2 years or more to less than V/i years. including changes associated with the implementation of the Monetary Control Act. Includes required reserves of member banks and Edge Act corporations and NOTE. Latest monthly and weekly figures are available from the Board's beginning Nov. 13, 1980, other depository institutions. Under the transitional H.3(502) statistical release. Back data and estimates of the impact on required phase-in program of the Monetary Control Act of 1980, the net changes in reserves and changes in reserve requirements are available from the Banking required reserves of depository institutions have been as follows: Effective Section, Division of Research and Statistics, Board of Governors of the Federal Nov. 13, 1980, a reduction of $2.9 billion; Feb. 12, 1981, an increase of $245 Reserve System, Washington, D.C. 20551. million; Mar. 12, 1981, an increase of $75 million; May 14, 1981, an increase of 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 1980 1981 1982 1983 IItteemm Dec. Dec. Dec. Dec. Sept. Oct. Nov. Dec. Seasonally adjusted MEASURES' 1 Ml 414.1 440.6 478.2 521.1 517.1 517.9 518.3 521.1 2 M2 1,630.3 1,794.9 1,959.5 2,184.6 2,145.4 2,161.6 2,174.6 2,184.6 3 M3 1,936.7 2,167.9 2,377.6 2,602.9 2,544.9 2,563.2 2,588.7 2,602.9 4 L2 2,343.6 2,622.0 2,8%.7 n.a. 3,137.9 3,155.2 n.a. n.a. SELECTED COMPONENTS 5 Currency 116.2 123.2 132.8 146.0 143.0 144.2 145.3 146.0 6 Travelers checks3 4.1 4.5 4.2 4.8 4.7 4.8 4.8 4.8 7 Demand deposits 266.8 236.4 239.8 243.1 243.4 242.9 241.6 243.1 8 Other checkable deposits4 26.9 76.6 101.3 127.1 126.0 126.0 126.5 127.1 9 Savings deposits5 400.7 344.4 359.3 312.3 320.6 318.8 316.4 312.3 10 Small-denomination time deposits6 731.7 828.6 859.1 792.1 757.7 771.0 784.4 792.1 11 Large-denomination time deposits7 258.9 302.6 333.8 329.0 317.7 319.9 324.8 329.0 Not seasonally adjusted MEASURES' 12 Ml 424.7 452.1 491.0 535.3 514.1 519.5 523.8 535.3 13 M2 1,635.0 1,799.6 1,964.5 2,191.4 2,137.2 2,160.6 2,174.4 2,191.4 14 M3 1,944.9 2,175.9 2,385.3 2,611.4 2,535.7 2,561.7 2,588.3 2,611.4 15 L2 2,350.8 2,629.7 2,904.7 n.a. 3,121.3 3,150.3 n.a. n.a. SELECTED COMPONENTS 16 Currency 118.3 125.4 135.2 148.7 142.6 143.9 146.1 148.7 17 Travelers checks3 3.9 4.3 4.0 4.6 5.0 4.8 4.6 4.6 18 Demand deposits 275.2 244.0 247.7 251.4 242.1 244.4 244.7 251.4 19 Other checkable deposits4 27.2 78.4 104.0 130.7 124.5 126.4 128.4 130.7 20 Overnight RPs and Eurodollars8 28.4 36.1 44.3 56.1 53.0 56.5 55.2 56.1 21 Savings deposits5 398.3 342.1 356.7 310.1 318.2 318.0 313.8 310.1 22 Money market deposit accounts n.a. n.a. 43.2 372.4 366.9 367.4 369.1 372.4 23 Small-denomination time deposits6 728.3 824.1 853.9 786.7 754.8 769.2 781.3 786.7 Money market mutual funds 24 General purpose and broker/dealer 61.4 150.9 182.2 138.0 137.6 137.8 138.7 138.0 25 Institution only 14.9 36.0 47.6 40.2 39.1 39.9 40.6 40.2 26 Large-denomination time deposits7 262.4 305.9 336.5 330.8 316.7 319.4 324.6 330.8 A Data appearing in this issue of the BULLETIN are reprinted because historical 3. Outstanding amount of U.S. dollar-denominated travelers checks of nondata on the money stock and reserves were not available at the time of bank issuers. publication. 4. Includes ATS and NOW balances at all institutions, credit union share draft 1. Composition of the money stock measures is as follows: balances, and demand deposits at mutual savings banks. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal 5. Excludes NOW and ATS accounts at commercial banks and thrift institu- Reserve Banks, and the vaults of commercial banks; (2) travelers checks of tions and CUSDs at credit unions and all money market deposit accounts nonbank issuers; (3) demand deposits at all commercial banks other than those (MMDAs). due to domestic banks, the U.S. government, and foreign banks and official 6. Issued in amounts of less than $100,000 and includes retail RPs. institutions less cash items in the process of collection and Federal Reserve float; 7. Issued in amounts of $100,000 or more and are net of the holdings of and (4) negotiable order of withdrawal (NOW) and automatic transfer service domestic banks, thrift institutions, the U.S. government, money market mutual (ATS) accounts at banks and thrift institutions, credit union share draft (CUSD) funds, and foreign banks and official institutions. accounts, and demand deposits at mutual savings banks. 8. Overnight (and continuing contract) RPs are those issued by commercial M2: Ml plus money market deposit accounts, savings and small-denomination banks to other than depository institutions and money market mutual funds time deposits at all depository institutions, overnight repurchase agreements at (general purpose and broker/dealer), and overnight Eurodollars are those issued commercial banks, overnight Eurodollars held by U.S. residents other than banks by Caribbean branches of member banks to U.S. residents other than depository at Caribbean branches of member banks and balances of money market mutual institutions and money market mutual funds (general purpose and broker/dealer). funds (general purpose and broker/dealer). M3: M2 plus large-denomination time deposits at all depository institutions, NOTE: Latest monthly and weekly figures are available from the Board's H.6 term RPs at commercial banks and savings and loan associations, and balances of (508) release. Back data are available from the Banking Section, Division of institution-only money market mutual funds. Research and Statistics, Board of Governors of the Federal Reserve System, 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. Washington, D.C. 20551. residents other than banks, bankers acceptances, commercial paper, Treasury bills and other liquid Treasury securities, and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • March 1983 1.22 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1983 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11998811'' 11998822'' 11998833'' July Aug. Sept. Oct. Nov. Dec. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 80,858.7 90,914.4 109,642.5 107,884.4 111,538.1 110,700.7 118,407.2 114,466.6 127,335.8 2 Major New York City banks 33,891.9 37,932.9 47,769.4 46,978.0 48,373.3 46,903.7 52,639.9 49,715.8 53,446.6 3 Other banks 46,966.9 52,981.6 61,873.1 60,906.4 63,164.9 63,796.9 65,767.3 64,750.8 73,889.2 4 ATS-NOW accounts3 743.4 1,036.2 1,405.5 1,390.1 1,679.5 1,495.9 1,392.8 1,447.4 1,626.1 5 Savings deposits4 672.7 721.4 741.4 659.4 706.3 712.7 643.7 674.9 730.0 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 285.8 324.2 380.5 371.5 385.7 384.7 409.6 398.3 440.4 7 Major New York City banks 1,105.1 1,287.6 1,528.0 1,432.2 1,526.7 1,508.8 1,703.8 1,645.6 1,733.1 8 Other banks 186.2 211.1 240.9 236.5 245.3 248.6 254.7 251.8 286.1 9 ATS-NOW accounts3 14.0 14.5 15.6 15.0 17.9 15.9 14.9 15.5 17.3 10 Savings deposits4 4.1 4.5 5.4 4.8 5.2 5.3 4.9 5.1 5.5 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 81,197.9 91,031.9 109,517.7 105,057.8 115,776.6 111,741.3 114,191.9 110,963.9 135,256.1 12 Major New York City banks 34,032.0 38,001.0 47,707.4 45,601.0 49,788.2 48,276.1 49,910.9 47.508.1 58,049.3 13 Other banks 47,165.9 53,030.9 61,810.3 59,456.8 65,988.3 63,465.2 64,280.9 63,455.8 77,206.8 14 ATS-NOW accounts3 737.6 1,027.1 1,397.8 1,325.3 1,468.9 1,388.3 1,373.2 1,327.2 1,589.0 15 MMDA5 0 0 573.5 603.3 655.5 641.4 700.3 639.1 819.0 16 Savings deposits4 672.9 720.0 742.0 661.6 694.3 688.9 672.9 635.3 714.4 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 286.1 325.0 379.9 357.6 406.7 387.2 391.1 381.7 453.0 18 Major New York City banks 1,114.2 1,295.7 1,526.6 1,383.5 1,621.6 1,574.5 1,595.5 1,553.4 1,813.9 19 Other banks 186.2 211.5 240.5 227.9 259.8 246.1 246.6 244.0 289.6 20 ATS-NOW accounts3 14.0 14.3 15.5 14.5 16.0 15.0 14.6 14.0 16.4 21 MMDA5 0 0 2.8 2.8 3.0 2.9 3.2 2.8 3.6 22 Savings deposits4 4.1 4.5 5.4 4.8 5.1 5.2 5.1 4.8 5.5 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 Banks' Billions of dollars; averages of Wednesday figures 1981 1982 1983 1981 1982 1983 CCaatteeggoorryy Dec.2 Dec. Sept. Oct. Nov. Dec. Dec.2 Dec. Sept. Oct. Nov. Dec. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,316.3 1,412.1 1,520.3 1,532.9 1,548.9 1,566.8 1,326.1 1,422.5 1,521.6 1,538.2 1,555.8 1,578.1 2 U.S. Treasury securities 111.0 130.9 176.9 182.3 186.2 188.1 111.4 131.5 176.3 180.8 185.0 188.9 3 Other securities 231.4 239.1 247.1 246.5 247.1 247.0 232.8 240.6 247.1 246.9 247.4 248.5 4 Total loans and leases3 973.9 1,042.0 1,096.3 1,104.1 1,115.7 1,131.7 981.8 1,050.4 1,098.2 1,110.4 1,123.4 1,140.7 5 Commercial and industrial loans 358.0 392.4 402.6 404.7 407.8 413.1 360.1 394.7 402.2 405.4 409.6 415.5 Real estate loans 285.7 303.2 326.2 329.2 332.1 335.2 286.8 304.1 326.9 330.5 333.4 336.2 7 Loans to individuals 185.1 191.8 207.7 212.0 215.4 219.5 186.4 193.1 209.1 213.6 216.7 221.0 8 Security loans 21.9 24.7 23.7 25.2 26.2 27.2 22.7 25.5 23.4 25.0 26.7 28.1 9 Loans to nonbank financial institutions 30.2 31.1 30.8 30.4 29.8 28.8 31.2 32.1 30.9 30.6 30.2 29.7 10 Agricultural loans 33.0 36.1 38.9 39.1 39.3 39.6 33.0 36.1 38.2 38.3 39.6 39.6 11 Lease financing receivables 12.7 13.1 12.9 13.0 13.0 13.1 12.7 13.1 12.9 13.0 13.0 13.1 12 All other loans 47.2 49.5 53.5 50.6 52.1 55.1 49.2 51.5 53.4 52.6 54.1 57.5 MEMO 13 Total loans and securities plus loans sold3 4 1,319.1 1,415.0 1,522.8 1,535.5 1,551.4 1,569.2 1,328.9 1,425.4 1,524.2 1,540.5 1,558.6 1,580.5 14 Total loans plus loans sold3'4 .... 976.7 1,045.0 1,098.9 1,106.7 1,118.2 1,134.1 984.7 1,053.3 1,100.8 1,112.9 1,126.0 1,143.1 15 Total loans sold to affiliates3 4.... 2.8 2.9 2.6 2.6 2.5 2.4 2.8 2.9 2.6 2.6 2.5 2.4 16 Commercial and industrial loans plus loans sold4 360.2 394.6 404.6 406.7 409.7 414.9 362.3 396.9 404.2 407.4 411.6 417.3 17 Commercial and industrial loans sold4 2.2 2.3 2.0 2.0 1.9 1.8 2.2 2.3 2.0 2.0 1.9 1.8 18 Acceptances held 8.9 8.5 8.3 8.9 8.6 8.2 9.8 9.5 8.3 8.8 8.9 9.0 19 Other commercial and industrial loans 349.1 383.8 394.3 395.8 399.2 404.9 350.3 385.2 393.9 396.6 400.8 406.5 20 To U.S. addressees5 334.9 373.5 381.8 383.2 386.9 394.7 334.3 372.7 381.6 383.9 388.0 393.9 21 To non-U.S. addressees 14.2 10.3 12.5 12.7 12.3 10.2 16.1 12.4 12.3 12.8 12.7 12.5 22 Loans to foreign banks 19.0 13.5 14.3 14.7 14.5 12.2 20.0 14.5 14.7 15.0 14.8 13.1 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 • March 1983 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1981 1982 1983 1984 source Dec. Dec/ Mar. Apr. May' June' July' Aug.' Sept.' Oct.' Nov.' Dec.' Jan. Total nondeposit funds 1 Seasonally adjusted2 96.3 83.3 76.0 80.3 90.9 88.4 76.5 82.6 83.4 80.2 97.1 100.6 97.7 2 Not seasonally adjusted 98.1 84.9 76.8 79.0 90.5 90.1 78.6 87.0 86.1 82.8 99.4 102.2 99.4 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8 128.1 135.5' 139.9 146.0 140.9 132.8 130.9 132.3 133.5 141.6 141.1 138.0 4 Not seasonally adjusted 113.5 129.7 136.2 138.5 145.6 142.6 134.9 135.3 135.1 136.0 143.9 142.7 139.7 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -47.7 -62.4' -62.5' -57.8 -55.2 -59.9 -50.9 -51.5 -55.8 -47.0 -42.9 -42.7 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 3.0 3.0 2.8 2.7 2.7 2.6 2.6 2.6 2.5 2.4 2.4 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -39.6 -52.8' -52.7' -48.7 -49.2 -50.9 -45.3 -46.3 -48.5 -42.9 -39.7 -38.6 8 Gross due from balances 54.9 72.2 79.7 80.3 76.3 75.8 77.4 73.6 74.7 76.4 76.5 75.2 73.0 9 Gross due to balances 32.4 32.6 26.8 27.6 27.6 26.6 26.5 28.3 28.3 27.9 33.6 35.5 34.5 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -8.1 -9.6' -9.8' -9.1 -6.0 -8.0 -6.6 -5.1 -7.3 -4.1 -3.0 -4.8 11 Gross due from balances 48.1 54.7 56.2' 55.9 55.8 53.9 55.2 53.5 53.5 55.4 53.1 53.5 52.9 12 Gross due to balances 52.4 46.6 46.6 46.1 46.7 47.9 47.2 47.0 48.3 48.0 49.0 50.6 48.0 Security RP borrowings 13 Seasonally adjusted' 59.0 71.2 74.8' 79.3 84.7 81.4 75.7 74.3 76.1 78.2 84.0 85.2 84.6 14 Not seasonally adjusted 59.2 71.2 73.9 76.3 82.7 81.5 76.2 77.0 77.3 79.1 84.6 85.1 84.6 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 11.9 12.5 13.5 11.3 13.0 24.0 20.6 16.5 21.7 9.9 11.9 18.9 16 Not seasonally adjusted 11.1 10.8 13.2 14.2 12.5 13.2 21.8 16.4 17.9 24.7 7.5 10.8 19.6 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 350.3 301.0' 293.3' 287.7 287.4 285.1 284.7 283.9 279.0 281.8 285.1 283.6 18 Not seasonally adjusted 330.4 354.6 300.3' 296.9' 285.5 284.0 281.5 284.4 284.7 280.3 283.0 288.1 287.1 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 BANKS' 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 11,,446666..11 11,,448833..00 11,,550022..33 11,,552255..22 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 1,095.1 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 644.0 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 702.7 714.4 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 23.3 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 265.3 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 261.9 253.8 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 1,969.5 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 1,482.6 15 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 11,,552255..44 1,541.8 11,,556633..22 11,,558866..88 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 1,149.3 25 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 26 Other 659.5 658.6 662.2 664.7 679.9 681.2 694.3 699.8 706.8 717.2 729.2 27 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 242.1 241.5 244.9 245.2 245.1 245.0 247.8 246.9 247.7 248.1 250.6 29 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 88.0 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 74.0 34 Other assets2 341.7 325.4 317.8 309.5 318.1 318.7 324.6 320.9 318.8 329.7 321.3 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 2,113.1 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 1,524.8 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 296.7 419.7 427.3 440.7 445.7 448.0 449.5 449.3 452.0 458.8 461.3 39 Time 736.7 654.1 642.6 636.0 641.6 643.8 655.3 659.5 663.8 670.6 680.4 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 148.4 141.1 138.6 137.9 142.3 139.1 143.4 142.3 141.5 151.9 158.6 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 • March 1983 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1983 AAccccoouunntt Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 1 Cash items in process of collection 49,878 49,636 53,639 49,096 53,442 47,811 52,076 53,484 57,643 2 Demand deposits due from banks in the United States.. 7,144 7,372 8,013 6,403 8,071 7,914 7,626 8,258 9,170 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 35,642 4 Total loans and securities 689,197 689,244 688,605 685,393 693,383 694,972 694,913 695,166 697,514 Securities 5 U.S. Treasury securities 56,304 57,065 58,501 57,373 58,500 60,023 59,209 58,181 56,665 6 Trading account 9,114 9,383 9,701 8,178 9,045 9,855 8,603 8,342 7,686 / Investment account, by maturity 47,190 47,682 48,800 49,194 49,455 50,168 50,606 49,839 48,979 8 One year or less 14,730 15,139 15,274 15,442 15,469 15,952 15,677 15,398 14,941 9 Over one through five years 29,246 29,318 30,734 30,932 31,244 31,353 31,824 31,248 30,838 10 Over five years 3,213 3,225 2,792 2,820 2,743 2,862 3,105 3,192 3,200 11 Other securities 84,140 83,673 83,614 84,536 83,946 84,723 84,333 85,150 85,735 12 Trading account 6,346 5,799 5,719 6,227 5,675 6,491 5,782 6,164 5,912 13 Investment account 77,794 77,874 77,894 78,309 78,271 78,231 78,551 78,986 79,823 14 U.S. government agencies 15,982 15,885 15,881 16,021 15,905 15,893 16,150 16,205 16,152 15 States and political subdivisions, by maturity 58,146 58,356 58,348 58,618 58,676 58,641 58,702 59,105 60,010 16 One year or less 7,833 7,942 7,863 7,992 7,984 8,133 7,996 7,964 7,953 17 Over one year 50,312 50,415 50,485 50,626 50,692 50,507 50,706 51,140 52,057 18 Other bonds, corporate stocks and securities 3,667 3,633 3,665 3,670 3,690 3,697 3,699 3,676 3,661 Loans 19 Federal funds sold1 45,751 44,083 42,523 40,574 44,815 43,761 44,777 39,568 40,220 20 To commercial banks 33,202 32,288 30,276 27,998 33,587 30,628 31,122 26,686 27,565 21 To nonbank brokers and dealers in securities 9,394 8,391 9,181 9,406 8,369 9,612 10,065 9,202 9,210 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 516,660 518,144 517,700 516,651 519,866 520,265 520,386 526,046 528,688 24 Commercial and industrial 216,767 218,604 216,684 216,292 217,410 218,307 218,202 219,732' 221,665' 25 Bankers acceptances and commercial paper 4,858 5,329 4,358 3,904 4,862 4,842 4,684 4,343 4,619 26 All other 211,909 213,274 212,326 212,387 212,548 213,465 213,518 215,390' 217,046' 27 U.S. addressees 204,653 205,928 205,055 205,124 205,251 206,194 206,447 208,187' 209,804' 28 Non-U.S. addressees 7,256 7,346 7,271 7,263 7,298 7,270 7,070 7,203 7,242 29 Real estate 139,441 139,261 139,634 139,686 139,903 139,911 140,288 140,303 140,001 30 To individuals for personal expenditures 81,642 81,756 81,980 82,425 82,898 83,448 84,171 8855,,008833 8855,,997766 To financial institutions 31 Commercial banks in the United States ... .v 7,891 8,202 7,997 8,131 7,879 7,814 7,647 9,110 9,095 32 Banks in foreign countries 8,606 8,604 8,587 8,087 8,411 8,208 7,335 7,700 7,884 33 Sales finance, personal finance companies, etc 9,655 9,322 9,297 9,178 9,224 9,299 9,322 9,139 9,358 34 Other financial institutions 15,581 15,888 15,438 15,023 15,246 15,505 15,653 15,365 16,124 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 3,290 37 To finance agricultural production 7,284 7,221 7,208 7,161 7,153 7,068 7,157 7,207 7,152 38 All other 16,620 16,696 17,300 16,883 17,329 16,817 16,862 17,627' 17,647' 39 LESS: Unearned income 4,979 5,018 4,997 4,979 4,973 4,973 4,976 4,965 4,970 40 Loan loss reserve 8,680 8,703 8,737 8,763 8,771 8,827 8,816 8,813 8,826 41 Other loans, net 503,001 504,423 503,967 502,909 506,122 506,465 506,594 512,268 514,893 42 Lease financing receivables 10,987 10,992 10,989 11,015 11,044 11,063 11,058 11,104 11,136 43 All other assets 143,736 146,917 142,369 140,841 142,090 144,500 142,929 144,029 140,567 44 Total assets 934,374 933,382 935,401 927,476 940,119 938,383 943,969 946,720 951,672 Deposits 45 Demand deposits 178,265'" 178,266' 182,702 172,648 185,419 177,669 182,850 184,936 193,574 46 Mutual savings banks 707 713 734 563 677 623 674 587 633 47 Individuals, partnerships, and corporations 136,456' 136,268' 138,397 133,377 141,338 136,614 141,563 141,620 147,568 48 States and political subdivisions 5,522 4,340 4,844 4,691 5,120 4,796 4,863 5,266 5,754 49 U.S. government 1,154 1,4% 2,314 2,026 1,938 1,820 2,237 1,188 2,059 50 Commercial banks in the United States 19,740 18,620' 20,147 18,289 20,124 19,234 18,785 20,005 21,620 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 6,766 8,448 7,702 7,973 9,386 8,582 54 Time and savings deposits 422,723 424,004' 423,360 425,988 426,856 427,672 427,187 428,095 429,545 55 Savings 173,711 174,186 174,195 173,928 174,763 176,017 175,169 174,814 174,788 56 Individuals and nonprofit organizations 153,120 153,311 153,138 152,788 153,398 154,440 153,673 153,483 153,254 57 Partnerships and corporations operated for profit .. 19,344 19,671 19,780 19,926 20,109 20,265 20,222 20,048 20,242 58 Domestic governmental units 1,200 1,164 1,232 1,171 1,216 1,255 1,222 1,202 1,208 59 All other 45 40 45 43 40 57 52 80 84 60 Time 249,012 249,818' 249,166 252,060 252,093 251,655 252,018 253,281 254,757 61 Individuals, partnerships, and corporations 222,530 223,408' 222,521 225,008' 225,114 224,902 224,907 225,765 227,183 62 States and political subdivisions 16,572 16,609 16,648 16.96C 16,617 16,368 16,530 16,752 16,624 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 77,,111199 77,,330055 77,,337700 77,,666611 65 Foreign governments, official institutions, and banks 3,128 3,129 3,180 3,150 3,089 33,,003344 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 2,742' 1,662 1,340 1,482 2,650 2,219 9,382 6,087 68 All other liabilities for borrowed money3 168,664 171,90<y 172,658 170,290 171,267 173,748 169,103 163,414 162,051 69 Other liabilities and subordinated notes and debentures . 87,328' 90,616^ 92,032 94,716 92,177 93,798 98,066 98,360 97,320 70 Total liabilities 872,390 871,253 873,325 865,587 877,717 875,686 881,363 884,606 889,283 71 Residual (total assets minus total liabilities)4 61,984 62,129 62,076 61,888 62,402 62,6% 62,606 62,114 62,389 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 NOTE: January and February data, which normally would appear in this issue of more on Dec. 31, 1977, see table 1.13. the BULLETIN, will be published on a revised basis in the April issue. Weekly data on the new basis are being published currently in the Board's H.4.2 statistical release. 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 AAccccoouunntt Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 Dec. 7 Dec. 14 Dec. 21 Dec. 28 1 Cash items in process of collection 46,875 46,935 50,398 45,894 50,369 45,117 49,034 50,347 54,359 2 Demand deposits due from banks in the United States.. 6,585 6,755 7,381 5,821 7,393 7,236 6,846 7,447 8,307 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 32,476 4 Total loans and securities 638,763 638,837 638,598 635,667 643,166 644,015 644,065 643,972 645,913 Securities 5 U.S. Treasury securities 51,254 51,944 53,424 52,232 53,353 54,785 53,931 52,889 5511,,333300 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 43,770 8 One year or less 13,025 13,376 13,601 13,674 13,759 14,204 13,940 13,677 13,220 9 Over one through five years 26,266 26,324 27,724 27,911 28,166 28,243 28,634 28,016 27,593 in Over five years 2,943 2,955 2,522 2,550 2,475 2,594 2,867 2,956 2,957 ii Other securities 76,264 75,820 75,766 76,677 76,110 76,889 76,453 77,284 77,699 i? Trading account 6,167 5,651 5,537 6,077 5,558 6,334 5,604 6,025 5,752 13 Investment account 70,097 70,169 70,229 70,600 70,552 70,555 70,849 71,259 71,947 14 U.S. government agencies 14,291 14,192 14,223 14,350 14,246 14,242 14,493 14,556 14,516 15 States and political subdivisions, by maturity 52,501 52,705 52,702 52,945 52,976 52,969 53,005 53,374 54,126 16 One year or less 7,164 7,306 7,228 7,360 7,345 7,500 7,357 7,325 7,300 17 Over one year 45,336 45,399 45,474 45,585 45,631 45,469 45,648 46,049 46,826 18 Other bonds, corporate stocks and securities 3,305 3,272 3,304 3,305 3,329 3,343 3,351 3,329 3,305 Loans 19 Federal funds sold1 40,363 38,874 37,751 36,315 40,237 38,422 39,944 34,824 3355,,669911 70 To commercial banks 28,536 27,808 26,132 24,271 29,452 25,888 27,011 22,800 23,938 21 To nonbank brokers and dealers in securities 8,727 7,684 8,584 8,917 7,978 9,046 9,380 8,382 8,346 7? To others 3,101 3,381 3,035 3,128 2,807 3,487 3,554 3,642 3,408 23 Other loans, gross 483,520 484,890 484,356 483,150 486,177 486,717 486,526 491,745 493,974 24 Commercial and industrial 204,614 206,381 204,486 203,962 205,076 206,102 205,913 207,207' 208,951' 25 Bankers acceptances and commercial paper 4,654 5,134 4,166 3,695 4,667 4,652 4,473 4,129 4,386 26 All other 199,959 201,247 200,321 200,268 200,410 201,449 201,440 203,078' 204,565' 77 U.S. addressees 192,817 194,024 193,163 193,120 193,256 194,317 194,517 196,027' 197,434' 78 Non-U.S. addressees 7,142 7,224 7,157 7,148 7,153 7,132 6,923 7,052 7,131 29 Real estate 130,566 130,411 130,724 130,737 130,930 130,931 131,269 131,269 130,927 30 To individuals for personal expenditures 72,344 72,416 72,614 72,999 73,402 73,892 74,526 75,362 76,070 To financial institutions 31 Commercial banks in the United States 7,404 7,719 7,540 7,628 7,407 7,354 7,128 8,526 88,,551155 32 Banks in foreign countries 8,466 8,480 8,473 7,976 8,291 8,095 7,217 7,575 7,784 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 15,482 3S To nonbank brokers and dealers in securities 9,768 9,122 10,287 10,506 11,151 10,592 10,450 11,441 10,385 36 To others for purchasing and carrying securities2 .... 3,073 3,115 2,922 2,926 2,909 2,933 2,937 2,962 3,019 37 To finance agricultural production 7,082 7,022 7,012 6,967 6,958 6,872 6,961 7,014 6,955 38 All other 15,836 15,880 16,407 16,085 16,460 16,004 16,012 16,732' 16,745' 39 LESS: Unearned income 4,394 4,431 4,410 4,389 4,390 4,390 4,391 4,379 4,381 40 Loan loss reserve 8,243 8,259 8,289 8,318 8,320 8,407 8,399 8,390 8,400 41 Other loans, net 470,883 472,199 471,657 470,443 473,466 473,920 473,736 478,976 481,193 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 139,606 142,651 138,045 136,490 137,699 140,116 138,463 139,520 135,943 44 Total assets 872,900 872,141 873,892 866,236' 878,437 876,492 881,350 883,515 887,688 Deposits 45 Demand deposits 165,521 165,890' 169,740 159,885 172,163 164,870 169,474 171,322 117799,,663322 46 Mutual savings banks 675 674 702 534 649 595 648 561 602 47 Individuals, partnerships, and corporations 126,481 126,396' 128,262 123,235 130,841 126,370 130,941 130,952 136,702 48 States and political subdivisions 4,935 3,820 4,258 4,137 4,522 4,293 4,289 4,448 5,024 49 U.S. government 1,009 1,380 2,088 1,857 1,757 1,673 1,973 1,044 1,886 50 Commercial banks in the United States 18,078 17,095' 18,475 16,722 18,481 17,676 17,196 18,367 19,868 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 6,512 8,184 7,452 7,719 9,114 8,296 54 Time and savings deposits 391,342 392,352 391,644 394,295 395,347 396,187 395,635 396,405 397,529 55 Savings 160,380 160,740 160,680 160,538 161,334 162,455 161,667 161,310 161,209 56 Individuals and nonprofit organizations 141,516 141,620 141,416 141,202 141,793 142,731 142,006 141,800 141,577 57 Partnerships and corporations operated for profit .. 17,733 18,026 18,099 18,232 18,406 18,554 18,526 18,363 18,504 58 Domestic governmental units 1,071 1,039 1,106 1,046 1,080 1,098 1,069 1,066 1,070 59 All other 60 54 59 58 55 71 67 80 57 60 Time 230,962 231,612 230,964 233,758 234,013 233,732 233,968 235,095 236,320 61 Individuals, partnerships, and corporations 206,447 207,214 206,332 208,763 209,042 208,937 208,836 209,567 210,765 62 States and political subdivisions 14,845 14,839 14,885 15,161 14,866 14,680 14,857 15,110 14,988 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 33,,008800 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 1,389 2,490 2,072 8,849 5,740 68 All other liabilities for borrowed money3 158,270 161,053' 162,261 159,852 160,742 162,603 158,010 152,641 150,918 69 Other liabilities and subordinated notes and debentures . 85,198 88,453 89,830 92,480 89,932 91,547 95,655 95,875 94,832 70 Total liabilities 814,929 814,014 815,781 808,325 820,053 817,846 822,784 825,393 829,273 71 Residual (total assets minus total liabilities)4 57,970 58,127 58,111 57,911 58,384 58,646 58,566 58,122 58,415 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 NOTE: January and February data, which normally would appear in this issue of more on Dec. 31, 1977, see table 1.13. the BULLETIN, will be published on a revised basis in the April issue. Weekly data on the new basis are being published currently in the Board's H.4.2 statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • March 1983 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. 7 Dec. 14 Dec. 21 Dec. 28 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 V 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 27,456 27,634 27,780 27,844 27,973 28,115 28,050 28,237 28,234 56 Individuals and nonprofit organizations 24,434 24,498 24,622 24,678 24,828 24,909 24,870 24,982 25,048 57 Partnerships and corporations operated for profit .. 2,797 2,892 2,906 2,938 2,932 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 42 40 38 55 50 66 68 60 Time 46,482 46,210 46,025 47,075 47,160 46,878 46,893 46,833 47,017 61 Individuals, partnerships, and corporations 40,880 40,689 40,261 41,257 41,257 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 2,5% 2,689 2,620 22,,772244 65 Foreign governments, official institutions, and banks 1,278 1,251 1,281 1,260 1,221 11,,117755 11,,116611 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 1,705 68 All other liabilities for borrowed money6 55,783 54,475 56,099 55,027 56,899 57,466 54,699 51,806 51,443 69 Other liabilities and subordinated notes and debentures . 36,087 36,737 37,218 37,579 35,215 36,301 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. 7. Not a measure of equity capital for use in capital adequacy analysis or for 2. Not available due to confidentiality. other analytic uses. 3. Includes securities purchased under agreements to resell. 4. Other than financial institutions and brokers and dealers. NOTE: January and February data, which normally would appear in this issue of 5. Includes trading account securities. the BULLETIN, will be published on a revised basis in the April issue. Weekly data 6. Includes federal funds purchased and securities sold under agreements to on the new basis are being published currently in the Board's H.4.2 statistical repurchase. release. 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. 7 Dec. 14 Dec. 21 Dec. 28 BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 661,762 662,475 664,066 663,005 665,662 670,330 669,936 673,148 674,649 2 Total loans (gross) adjusted1 521,318 521,737 521,951 521,096 523,216 525,584 526,394 529,818 532,249 3 Demand deposits adjusted2 107,492' 108,514' 106,603 103,238 109,914 108,804 109,752 110,258 112,252 4 Time deposits in accounts of $100,000 or more 140,573r 140,759' 140,107 142,777 142,516 142,021 142,346 143,376 144,842' 5 Negotiable CDs 88,424 88,322 87,427 89,542 89,424 88,931 89,378 89,922 91,714' 6 Other time deposits 52,150' 52,437' 52,680 53,235 53,092 53,089 52,969 53,454 53,128 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 615,461 615,999 617,625 616,476 619,018 623,570 622,716 625,416 626,241 11 Total loans (gross) adjusted1 487,943 488,235 488,435 487,567 489,554 491,896 492,332 495,243 497,212 12 Demand deposits adjusted2 99,558 100,497 98,778 95,411 101,555 100,404 101,272 101,564 103,518 13 Time deposits in accounts of $100,000 or more 131,729 131,815 131,178 133,737 133,724 133,332 133,538 134,471 135,798' 14 Negotiable CDs 83,424 83,279 82,416 84,523 84,634 84,202 84,473 84,896 86,546' 15 Other time deposits 48,305 48,536 48,762 49,214 49,089 49,130 49,065 49,575 49,252 16 Loans sold outright to affiliates3 2,544 2,486 2,510 2,434 2,331 2,369 2,338 2,323 2,302 17 Commercial and industrial 1,966 1,909 1,928 1,869 1,806 1,807 1,788 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 adjusted14 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 27,577 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 4. Excludes trading account securities. banks. 2. All demand deposits except U.S. government and domestic banks less cash NOTE: January and February data, which normally would appear in this issue of items in process of collection. the BULLETIN, will be published on a revised basis in the April issue. Weekly data 3. Loans sold are those sold outright to a bank's own foreign branches, on the new basis are being published currently in the Board's H.4.2 statistical nonconsolidated nonbank affiliates of the bank, the bank's holding company (if release. not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • March 1983 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. 7 Dec. 14 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 6,070' 2 Total loans and securities 42,029 43,487 43,173 43,878 43,668 43,048 44,911' 45,054' 45,60C 3 U.S. Treasury securities 4,711 4,664 4,755 4,675 4,594 4,648 4,628 4,604 4,614 4 Other securities 972 957 958 951 966 996' 1,022' 1,038' 1,066 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 34,539 35,419' 35.44C 35,445' 9 Commercial and industrial 18,536 18,742 18,960 18,913 1199,,331133 1199,,119911 1199,,666611 1199,,661111 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 Mother 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 10,596 10,707 11,001' 11,403' 11,066' 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 1,639' 1,562 1,575' 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 33,,779933 33,,667777 33,,662266 33,,660033 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 11,578' 9,778' 9,953' 22 Total assets 72,484 74,037 73,576 75,238 74,684 74,621 75,532 75,011' 74,045' 23 Deposits or credit balances2 19,380 19,422 19,257 20,387 20,662 20,625 21,533' 22,495' 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 11,,779922 11,,667733 11,,993355'' 22,,113399'' 11,,993300 26 Individuals, partnerships, and corporations 873 853 786 855 882 820 853' 849' 914 27 Other 901 946 982 1,019 910 853 1,082' 1,289' 1,016 28 Total time and savings 17,404 17,468 17,331 18,362 1188,,772288 1188,,880088 1199,,447733 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 1100,,115577 1100,,888800 1100,,445533 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 13,555' 14,548' 13,351 39 Net due to related institutions 5,639 7,292 7,039 7,422 7,280 6,615 7,063 6,854' 7,347' 40 Total liabilities 72,484 74,037 73,576 75,238 74,684 74,621 75,532 75,011' 74,045' MEMO 41 Total loans (gross) and securities adjusted* 31,018 30,854 31,147 31,277 32,130 31,947 32,730' 32,133' 32,586' 42 Total loans (gross) adjusted5 25,334 25,232 25,434 25,651 26,570 26,303 27,079' 26,490' 26,906' 1. Includes securities purchased under agreements to resell. 5. Excludes loans and federal funds transactions with commercial banks in 2. Balances due to other than directly related institutions. United States. 3. Borrowings from other than directly related institutions. 4. Includes securities sold under agreements to repurchase. NOTE: January and February data, which normally would appear in this issue of the BULLETIN, will be published on a revised basis in the April issue. Weekly data on the new basis are being published currently in the Board's H.4.2 statistical release. 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 Corporations1 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 ? 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 152.7 157.7 162.8 154.8 138.7 141.4 142.9 151.7 144.4 147.7 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 Nonfinancial Statistics • March 1983 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1983 1984 IInnssttrruummeenntt D 19 e 7 c 8 . 1 D 9 e 7 c 9 . ' D 19 e 8 c 0 . D 19 e 8 c 1 . D 19 e 8 c. 2 2 Aug. Sept. Oct. Nov. Dec. Jan. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,455 166,208 174,669 176,775 175,924 180,206 185,407 183,318 Financial companies3 Dealer-placed paper* 2 Total 12,181 17,359 19,599 29,904 34,067 40,749 39,963 37,323 40,890 4400,,999944 39,775 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 2,353 2,303 2,195 2,341 2,441 2,087 Directly placed paper5 4 Total 5511,,664477 64,757 67,854 81,715 84,183 90,628 91,600 92,819 93,820 9966,,669922 97,921 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 35,085 34,856 34,622 35,001 35,566 37,560 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,958 43,292 45,212 44,977 45,496 47,721 45,622 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 73,977 73,569 72,902 77,919 78,309 73,450 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 8,498 9,205 9,501 10,894 9,355 9,546 9 Own bills 7,653 8,327 8,963 9,743 9,471 7,466 7,986 8,212 9,558 8,125 7,814 10 Bills bought 927 1,538 1,601 1,115 1,439 1,033 1,219 1,289 1,337 1,230 1,732 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 209 1122 0 0 418 0 12 Foreign correspondents 664 1,382 1,791 1,442 949 717 622 483 573 729 729 13 Others 24,456 33,370 41,614 56,731 66,204 65,961 64,942 62,917 66,452 68,225 63,174 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 14,487 14,653 14,829 14,906 15,649 15,028 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 16,476 16,215 16,036 17,209 16,880 16,159 16 All other 17,541 25,411 30,257 39,060 45,531 43,013 42,701 42,036 45,806 45,781 42,263 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 1981—Nov.24 16.00 1982—Aug. 23 13.50 1982- 16.50 1983—Mar. Dec. 1 15.75 Oct. 7 13.00 16.50 Apr. 14 12.00 16.50 May Nov. 22 11.50 16.50 June July 16.26 July 1982—Feb. 18 17.00 Aug 14.39 Aug. 23 16.50 Sept 13.50 Sept July 20 16.00 1983—Jan. 11 11.00 Oct 12.52 Oct. 29 15.50 Feb. 28 10.50 11.85 Nov. Aug. 15.00 Aug. 8 11.00 Dec 11.50 Dec. 2 14.50 1982—Jan.... 15.75 1983-—Jan 11.16 1984—Jan. 16 14.00 Feb. .. 16.56 Feb 10.98 Feb. 18 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 sizes 25-49 100-499 500-999 an 1 d , 0 o 0 v 0 e r 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 I,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 II.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 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 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 10-24 100-249 250 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 14.22 13.99 14.20 14.12 13.45 13.92 48 Other livestock 13.87 14.30 15.13 14.14 13.83 (2) 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 (2) (2) (2) 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 Domestic Nonfinancial Statistics • March 1983 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted. 1983 1984 1984, week ending IInnssttrruummeenntt 11998811 11998822 11998833 Nov. Dec. Jan. Feb. Feb. 3 Feb. 10 Feb. 17 Feb. 24 Mar. 2 MONEY MARKET RATES 1 Federal funds1'2 16.38 12.26 9.09 9.34 9.47 9.56 9.59 9.41 9.58 9.53 99..6600 99..6622 Commercial paper3'4 2 1-month 15.69 11.83 8.87 9.10 9.56 9.23 9.35 9.18 9.30 9.39 9.42 9.42 3 3-month 15.32 11.89 8.88 9.10 9.53 9.20 9.32 9.15 9.25 9.35 9.41 9.43 4 6-month 14.76 11.89 8.89 9.09 9.50 9.18 9.31 9.14 9.23 9.35 9.40 9.44 Finance paper, directly placed3,4 5 1-month 15.30 11.64 8.80 9.06 9.51 9.20 9.34 9.17 9.30 9.38 9.42 9.36 6 3-month 14.08 11.23 8.70 8.87 9.16 9.08 9.14 9.05 9.08 9.12 9.22 9.18 7 6-month 13.73 11.20 8.69 8.84 9.11 9.02 9.06 8.99 9.03 9.07 9.11 9.12 Bankers acceptances4-5 8 3-month 15.32 11.89 8.90 9.16 9.52 9.23 9.38 9.15 9.31 9.41 9.50 9.51 9 6-month 14.66 11.83 8.91 9.13 9.45 9.19 9.35 9.13 9.26 9.38 9.49 9.52 Certificates of deposit, secondary market6 10 1-month 15.91 12.04 8.96 9.22 9.67 9.33 9.43 9.25 9.35 9.46 9.54 9.57 11 3-month 15.91 12.27 9.07 9.36 9.69 9.42 9.54 9.33 9.44 9.57 9.69 9.69 12 6-month 15.77 12.57 9.27 9.51 9.85 9.56 9.73 9.44 9.62 9.76 9.90 9.95 13 Eurodollar deposits, 3-month7 16.79 13.12 9.56 9.79 10.08 9.78 9.91 9.68 9.78 9.91 10.06 10.09 U.S. Treasury bills4 Secondary market8 14 3-month 14.03 10.61 8.61 8.76 9.00 8.90 9.09 8.91 9.06 9.09 9.18 9.18 15 6-month 13.80 11.07 8.73 8.93 9.17 9.02 9.18 8.97 9.10 9.21 9.32 9.33 16 1-year 13.14 11.07 8.80 9.08 9.24 9.07 9.20 9.00 9.10 9.21 9.35 9.37 Auction average9 17 3-month 14.029 10.686 8.63 8.71 8.96 8.93 9.03 8.87 9.08 9.04 9.13 9.20 18 6-month 13.776 11.084 8.75 8.89 9.14 9.06 9.13 8.97 9.11 9.16 9.28 9.33 1199 1133..115599 1111..009999 88..8866 99..0033 99..1166 99..0044 99..2244 99..2244 CAPITAL MARKET RATES U.S. Treasury notes and bonds10 Constant maturities" 20 1-year 14.78 12.27 9.57 9.94 10.11 9.90 10.04 9.81 9.94 10.05 10.21 10.24 21 2-vear 14.56 12.80 10.21 10.66 10.84 10.64 10.79 10.56 10.67 10.78 10.94 11.00 ?? 2-V2-year12 10 85 11 10 23 3-year 14.44 12.92 10.45 10.96 11.13 10.93 11.05 10.87 10.96 11.04 11.17 11.24 24 5-year 14.24 13.01 10.80 11.41 11.54 11.37 11.54 11.31 11.43 11.55 11.67 11.75 25 7-year 14.06 13.06 11.02 11.61 11.78 11.58 11.75 11.53 11.65 11.75 11.87 11.97 26 10-year 13.91 13.00 11.10 11.69 11.83 11.68 11.84 11.63 11.74 11.85 11.97 12.05 27 20-year 13.72 12.92 11.34 11.92 12.02 11.82 12.00 11.79 11.90 12.02 12.12 12.21 28 30-year 13.44 12.76 11.18 11.75 11.88 11.75 11.95 11.74 11.83 11.% 12.09 12.15 Composite13 29 Over 10 years (long-term) 12.87 12.23 10.84 11.32 11.44 11.29 11.44 11.26 11.34 11.44 11.56 11.65 State and local notes and bonds Moody's series14 30 Aaa 10.43 10.88 8.80 9.01 9.34 9.00 9.04 8.80 9.00 9.15 9.20 9.30 31 Baa 11.76 12.48 10.17 10.01 10.29 10.10 9.94 9.85 9.95 9.95 10.00 10.10 32 Bond Buyer series15 11.33 11.66 9.51 9.75 9.89 9.63 9.64 9.51 9.56 9.68 9.80 9.86 Corporate bonds Seasoned issues16 33 All industries 15.06 14.94 12.78 12.93 13.07 12.92 12.88 12.80 12.77 12.84 12.96 13.09 34 Aaa 14.17 13.79 12.04 12.41 12.57 12.20 12.08 11.97 11.96 12.06 12.22 12.30 35 Aa 14.75 14.41 12.42 12.61 12.76 12.71 12.70 12.64 12.58 12.67 12.76 12.96 36 A 15.29 15.43 13.10 13.09 13.21 13.13 13.11 13.04 13.03 13.08 13.18 13.31 37 Baa 16.04 16.11 13.55 13.61 13.75 13.65 13.59 13.54 13.48 13.56 13.70 13.78 38 A-rated, recently-offered utility bond17 16.63 15.49 12.73 13.14 13.29 12.99 13.05 12.83 12.91 13.02 13.35 13.41 MEMO: Dividend/price ratio18 39 Preferred stocks 12.36 12.53 11.2 P 11.12 11.49 11.35 11.16 11.16 11.25 11.12 11.07 11.19 40 Common stocks 5.20 5.81 4.40 4.31 4.32 4.27 4.59 4.42 4.62 4.62 4.69 4.62 1. Weekly and monthly figures are averages of all calendar days, where the 11. 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. 12. 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). 13. 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. 14. 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). 15. 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). 16. 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. 17. Compilation of the Federal Reserve. This series is an estimate of the yield 7. Calendar week average. For indication purposes only. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 8. Unweighted average of closing bid rates quoted by at least five dealers. call protection. Weekly data are based on Friday quotations. The Federal Reserve 9. Rates are recorded in the week in which bills are issued. Beginning with the previously published interest rate series on both newly-issued and recently- Treasury bill auction held on Apr. 18, 1983, bidders were required to state the offered Aaa utility bonds, but discontinued these series in January 1984 owing to percentage yield (on a bank discount basis) that they would accept to two decimal the lack of Aaa issues. places. Thus, average issuing rates in bill auctions will be reported using two 18. Standard and Poor's corporate series. Preferred stock ratio based on a rather than three decimal places. sample of ten issues: four public utilities, four industrials, one financial, and one 10. Yields are based on closing bid prices quoted by at least five dealers. transportation. Common stock ratios on the 500 stocks in the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A27 1.36 STOCK MARKET Selected Statistics 1983 1984 IInnddiiccaattoorr 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 74.02 68.93 92.63 96.43 96.74 93.96 96.70 96.78 95.36 94.92 96.16 90.60 2 Industrial 85.44 78.18 107.45 112.52 113.21 109.50 112.76 112.87 110.77 110.60 112.16 105.44 3 Transportation 72.61 60.41 89.36 92.22 92.91 88.06 94.56 95.41 97.68 98.79 97.98 86.33 4 Utility 38.90 39.75 47.00 46.76 46.61 46.94 48.16 48.73 48.50 47.00 47.43 45.67 5 Finance 73.52 71.99 95.34 101.22 99.60 95.76 97.00 94.79 94.48 94.25 95.79 89.95 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 128.05 119.71 160.41 166.39 166.96 162.42 167.16 167.65 165.23 164.36 166.39 157.70 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 171.79 141.31 216.48 237.51 244.03 230.10 234.36 223.76 218.42 221.31 224.83 207.95 Volume of trading (thousands of shares) 8 New York Stock Exchange 46,967 64,617 85,418 89,729 79,508 74,191 82,866 85,445 86,405 88,041 105,518 96,641 9 American Stock Exchange 5,346 5,283 8,215 10,874 8,199 6,329 6,629 7,751 6,160 6,939 7,167 6,431 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers3 14,411 13,325 23,000 18,292 19,218 19,437 20,124 21,030 22,075 23,000 23,132 f 11 Margin stock4 14,150 12,980 22,720 17,930 18,870 19,090 19,760 20,690 21,790 22,720 22,870 I 12 Convertible bonds 259 344 279 361 347 346 363 339 285 279 261 1 13 Subscription issues 2 1 1 1 1 1 1 1 1 1 1 n.a. Free credit balances at brokers5 1 14 Margin-account 3,515 5,735 6,620 6,150 6,275 6,350 6,550 6,630 6,512 6,620 6,660 1 15 Cash-account 7,150 8,390 8,430 8,590 8,145 8,035 7,930 7,695 7,599 8,430 8,115 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 37.0 21.0 41.0 13.0 21.0 23.0 24.0 35.0 48.0 41.0 43.0 18 40-49 24.0 24.0 22.0 21.0 28.0 28.0 27.0 24.0 22.0 22.0 21.0 19 50-59 17.0 24.0 16.0 29.0 21.0 20.0 21.0 17.0 17.0 16.0 15.0 n.a. 20 60-69 10.0 14.0 9.0 16.0 14.0 13.0 12.0 10.0 10.0 9.0 9.0 1 21 70-79 6.0 9.0 6.0 12.0 9.0 9.0 9.0 7.0 7.0 6.0 6.0 1 22 80 or more 6.0 8.0 6.0 9.0 7.0 7.0 7.0 7.0 6.0 6.0 6.0 T Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)7 25,870 35,598 58,329 47,100 50,580 50,267 51,211 54,029 57,490 58,329 62,670 f Distribution by equity status (percent) I 24 Net credit status 58.0 62.0 63.0 62.0 62.0 62.0 64.0 63.0 63.0 63.0 61.0 n.a. Debt status, equity of 1 25 60 percent or more 31.0 29.0 28.0 33.0 31.0 31.0 29.0 28.0 29.0 28.0 29.0 I 26 Less than 60 percent 11.0 9.0 9.0 5.0 6.0 7.0 7.0 9.0 8.0 9.0 10.0 T Margin requirements (percent of market value and effective date)8 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 6. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 7. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers based on loan values of 2. Beginning July 5, 1983, the American Stock Exchange rebased its index other collateral in the customer's margin account or deposits of cash (usually sales effectively cutting previous readings in half. proceeds) occur. 3. Margin credit includes all credit extended to purchase or carry stocks or 8. Regulations G, T, and U of the Federal Reserve Board of Governors, related equity instruments and secured at least in part by stock. Credit extended is prescribed in accordance with the Securities Exchange Act of 1934, limit the end-of-month data for member firms of the New York Stock Exhange. amount of credit to purchase and carry margin stocks that may be extended on Besides assigning a current loan value to margin stock generally, Regulations T securities as collateral by prescribing a maximum loan value, which is a specified and U permit special loan values for convertible bonds and stock acquired through percentage of the market value of the collateral at the time the credit is extended. exercise of subscription rights. Margin requirements are the difference between the market value (100 percent) 4. A distribution of this total by equity class is shown on lines 17-22. and the maximum loan value. The term "margin stocks" is defined in the 5. Free credit balances are in accounts with no unfulfilled commitments to the corresponding regulation. brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • March 1983 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1983 1984 AAccccoouunntt 11998811 11998822 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Savings and loan associations 1 Assets 664,167 707,646' 725,309' 730,211' 729,920' 733,074' 741,416' 746,998' 748,491' 756,953' 763,365' 771,705 774,955 2 Mortgages 518,547 483,614 477,022 477,593 473,481 474,510 479,322 483,178 482,305 485,366 489,720 493,432 497,746 3 Cash and investment securities' 63,123 85,438 97,377 99,973 104,245 102,063 102,546 99,812 100,243 101,553 101,386 103,395 102,260 4 Other 82,497 138,594 150,910 152,645 152,194 156,501 159,548 164,008 165,943 170,034 172,259 174,878 174,949 5 Liabilities and net worth 664,167 707,646 725,309 730,211 729,920 733,074 741,416 746,998 748,491 756,953 763,365 771,705 774,955 6 Savings capital 525,061 567,861 599,092 603,187 601,731 605,282 610,826 615,369 618,002 622,577 625,013 634,076 641,762 7 Borrowed money 88,782 97,850 84,850 83,623 82,731 84,342 84,694 84,388 85,976 87,367 89,235 91,443 86,648 8 FHLBB 62,794 63,861 56,859 55,933 54,392 54,234 53,579 52,303 52,179 52,678 51,735 52,626 50,954 9 Other 25,988 33,989 27,991 27,690 28,339 30,108 31,115 32,085 33,797 34,689 37,500 38,817 35,369 10 Loans in process2 6,385 9,934 12,255 13,478 14,548 15,998 17,094 17,967 18,812 19,209 19,728 21,117 21,342 11 Other 15,544 15,602 14,436 15,853 17,936 15,140 17,527 18,615 15,496 17,458 19,179 15,275 16,039 12 Net worth3 28,395 26,233 26,931 27,548 27,522 28,310 28,369 28,626 29,017 29,551 29,938 30,911 30,831 13 MEMO: Mortgage loan commitments outstanding4 15,225 18,054 24,922 27,968 30,148 30,691 31,733 32,415 32,483 32,798 34,780 32,996 33,784 Mutual savings banks5 14 Assets 175,728 174,197 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 189,146 193,517 Loans 15 Mortgage 99,997 94,091 93,823 93,311 93,587 94,000 93,998 93,941 94,831 95,181 95,600 97,368 16 Other 1144,,775533 16,957 17,837 18,353 17,893 17,438 18,134 17,929 17,830 18,860 19,674 19,120 Securities 17 U.S. government6 9,810 9,743 12,187 12,364 13,110 13,572 13,931 14,484 14,794 14,774 15,090 15,349 18 State and local government 2,288 2,470 2,403 2,311 2,260 2,257 2,248 2,247 2,244 2,189 2,194 2,177 19 Corporate and other7 37,791 36,161 37,827 38,342 39,142 40,206 40,667 41,045 41,889 41,907 42,625 43,589 20 Cash 5,442 6,919 6,548 6,039 5,960 6,224 5,322 5,168 5,560 4,940 4,990 6,252 21 Other assets 5,649 7,855 8,189 8,107 8,118 8,276 8,522 8,799 8,893 9,051 8,973 9,662 22 Liabilities 175,728 174,197 178,814 178,826 180,071 181,975 182,822 183,612 186,041 188,021 189,146 193,517 n a. 23 Deposits 155,110 155,196 161,489 161,262 162,287 163,990 164,848 165,087 165,887 166,260 169,334 172,639 24 Regular8 153,003 152,777 159,088 158,760 159,840 161,573 162,271 162,600 162,998 163,782 166,984 170,105 25 Ordinary savings 49,425 46,862 41,183 40,379 40,467 40,451 39,983 39,360 39,768 38,129 38,448 38,553 26 Time 103,578 96,369 86,272 84,593 83,506 84,705 85,445 86,446 85,603 90,639 93,051 95,107 27 Other 2,108 2,419 2,401 2,502 2,447 2,417 2,577 2,487 2,889 2,478 2,350 2,534 28 Other liabilities 10,632 8,336 7,395 7,631 3,114 7,754 7,596 7,884 9,475 8,988 9,192 10,174 29 General reserve accounts 9,986 9,235 9,342 9,352 9,377 9,575 9,684 9,932 9,879 12,245 10,314 18,759 30 MEMO: Mortgage loan commitments outstanding9 1,293 1,285 1,639 1,882 1,860 1,884 1,969 2,046 2,023 2,210 2,418 2,387 Life insurance companies 31 Assets 525,803 588,163 602,770 609,298 620,572 628,224 633,569 638,826 644,295 647,149 652,904 Securities Government 25,209 36,499 38,449 39,210 42,523 43,348 44,751 45,700 46,109 47,767 47,170 United States10. 8,167 16,529 19,213 19,746 20,706 21,141 22,228 22,817 23,134 24,380 24,232 State and local . 7,151 8,664 8,368 8,524 10,053 10,355 10,504 10,695 10,739 10,791 10,686 Foreign" 9,891 11,306 10,868 10,940 11,764 11,852 12,019 12,188 12,236 12,596 12,252 Business 255,769 287,126 296,233 300,558 309,254 313,510 316,934 318,584 321,568 320,964 325,787 n.a. n.a. Bonds 208,099 231,406 236,430 238,689 245,833 248,248 252,397 253,977 256,131 256,332 260,432 Stocks 47,670 55,720 59,803 61,869 63,421 65,262 64,537 64,607 65,437 64,632 65,355 39 Mortgages 137,747 141,989 143,031 143,011 143,758 144,725 145,086 146,400 147,356 148,256 148,947 40 Real estate 40,094 20,264 21,175 21,352 21,344 21,629 21,690 21,749 21,903 22,141 22,278 41 Policy loans 48,706 52,961 53,560 53,715 53,804 53,914 53,972 54,063 54,165 54,255 54,362 42 Other assets 35,815 48,571 50,322 51,452 48,889 51,098 51,136 52,330 53,194 53,765 54,360 Credit unions12 43 Total assets/liabilities and capital 60,611 69,572 73,876 74,896 76,851 78,467 79,084 79,595 80,678 81,033 81,845 82,854 83,182 44 Federal 39,181 45,483 48,350 48,986 50,275 51,430 51,844 52,224 53,033 53,222 53,710 54,372 54,657 45 State 21,430 24,089 22,526 25,910 26,576 27,037 27,240 27,371 27,645 27,811 28,135 28,482 28,525 46 Loans outstanding 42,333 43,223 43,067 43,530 44,055 45,001 45,616 46,880 47,744 48,345 49,102 49,923 50,306 47 Federal 27,096 27,941 27,823 28,133 28,512 29,175 29,577 30,384 30,912 31,287 31,789 32,304 32,631 48 State 15,237 15,282 15,244 15,397 15,543 15,826 16,039 16,496 16,832 17,058 17,313 17,619 17,675 49 Savings 54,152 62,977 67,494 68,663 70,221 71,712 72,438 72,550 73,697 74,187 74,685 75,435 76,068 50 Federal (shares) 35,250 41,341 44,336 45,165 46,192 47,145 47,713 47,874 48,709 49,044 49,400 49,839 50,387 51 State (shares and deposits) 18,902 21,636 23,158 23,498 24,029 24,567 24,725 24,676 24,988 25,143 25,285 25,596 25,681 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.37 Continued 1983 1984 AAccccoouunntt 11998811 11998822 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. FSLIC-insured federal savings banks 52 Assets 6,859 18,635 22,713 33,667 39,660 41,763 46,191 57,496 59,422 61,717 53 Mortgages 3,353 11,556 14,345 21,248 25,236 26,494 28,086 34,814 35,637 37,166 54 Cash and investment securities' 3,683 4,310 5,901 6,675 6,890 7,514 9,245 9,587 9,653 55 Other 3,396 4,058 6,518 7,749 8,379 10,591 13,437 14,198 14,898 56 Liabilities and net worth 6,859 18,635 22,713 33,667 39,660 41,763 46,191 57,496 59,422 61,717 57 Savings and capital 5,877 15,377 18,598 27,419 32,446 34,108 37,284 47,058 48,544 50,384 58 Borrowed money .. 2,160 2,719 4,146 4,831 5,008 5,445 6,598 6,775 6,981 59 FHLBB 1,550 1,979 2,755 3,094 3,131 3,572 4,192 4,323 4,381 60 Other 610 740 1,391 1,737 1,877 1,873 2,406 2,452 2,600 61 Other 305 453 759 755 919 1,142 1,089 1,293 1,428 62 Net worth3 793 943 1,343 1,628 1,728 2,320 2,751 2,810 2,924 MEMO 265 335 650 791 934 1,120 1,181 1,222 63 Loans in process2 64 Mortgage loan committments 592 722 1,113 1,438 1,743 1,774 2,130 2,064 2,230 outstanding4 1. Holdings of stock of the Federal Home Loan Banks are in "other assets." 11. Issues of foreign governments and their subdivisions and bonds of the 2. Beginning in 1982, loans in process are classified as contra-assets and are International Bank for Reconstruction and Development. not included in total liabilities and net worth. Total assets are net of loans in 12. As of June 1982. data include only federal or federally insured state credit process. unions serving natural persons. 3. Includes net undistributed income accrued by most associations. 4. Excludes figures for loans in process, which are shown as a liability. NOTE. Savings and loan associations: Estimates by the FHLBB for all 5. The National Council reports data on member mutual savings banks and on associations in the United States. Data are based on monthly reports of federally savings banks that have converted to stock institutions, and to federal savings insured associations and annual reports of other associations. Even when revised, banks. data for current and preceding year are subject to further revision. 6. Beginning April 1979, includes obligations of U.S. government agencies. Mutual savings banks: Estimates of National Council of Savings Institutions for Before that date, this item was included in "Corporate and other." all savings banks in the United States. 7. Includes securities of foreign governments and international organizations Life insurance companies: Estimates of the American Council of Life Insurance and, before April 1979, nonguaranteed issues of U.S. government agencies. for all life insurance companies in the United States. Annual figures are annual- 8. Excludes checking, club, and school accounts. statement asset values, with bonds carried on an amortized basis and stocks at 9. Commitments outstanding (including loans in process) of banks in New year-end market value. Adjustments for interest due and accrued and for York State as reported to the Savings Banks Association of the State of New differences between market and book values are not made on each item separately York. but are included, in total, in "other assets." 10. 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 data. 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1982 1983 1983 1984 111999888111 111999888222 111999888333 HI H2 HI Nov. Dec. Jan. U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 46,200 58,041 62,537 2 Outlays' 657,204 728,375 795,917 348,678 390,846 396,477 67,792 74,702 68,052 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -21,592 -16,661 -5,515 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 -3,408 3,921 1,043 5 Federal funds2 3 -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -18,183 -20,579 -6,558 Off-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -526 -312 -121 7 Other3'4 -236 -3,190 -1,953 227 -2,267 -528 -152 400 -129 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -78,936 -127,940 -207,711 -33,914 -111,699 -96,094 -22,270 -16,572 -5,762 Source or financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 8,946 15,501 2233,,668866 10 Cash and monetary assets (decrease, or increase (-))4 -1,878 -11,911 -9,889 -408 -9,057 -9,664 21,277 -6,092 -21,127 11 Other5 1,485 4,858 5,176 -7,405 1,146 3,222 -7,953 7,164 3,202 MEMO 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 5,213 11,817 28,544 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 2,896 3,661 7,153 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 2,316 8,157 21,392 1. Effective Feb. 8, 1982, supplemental medical insurance premiums and 5. Includes accrued interest payable to the public; allocations of special voluntary hospital insurance premiums, previously included in other insurance drawing rights; deposit funds; miscellaneous liability (including checks outstandreceipts, have been reclassified as offsetting receipts in the health function. ing) and asset accounts; seigniorage; increment on gold; net gainAoss for U.S. 2. 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. 3. Other off-budget includes Postal Service Fund; Rural Electrification and Telephone Revolving Fund; Rural Telephone Bank; and petroleum acquisition SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. and transportation and strategic petroleum reserve effective November 1981. Government." Treasury Bulletin, and the Budget of the United States Govern- 4. Includes U.S. Treasury operating cash accounts; SDRs; gold tranche ment, Fiscal Year 1985. Digitized for FdRrawAiSngE rRig hts; loans to International Monetary Fund; and other cash and monetary assets. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • March 1983 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 1984 111999888111 111999888222 111999888333 HI H2 HI Nov. Dec. Jan. RECEIPTS 1 All sources' 599,272 617,766 600,563 322,478 286,338 306,331 46,200 58,041 62,537 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 22,700 25,577 33,881 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 22,550 24,482 21,070 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 0 0 0 5 Nonwithheld 76,844 84,691 83,586 66,174 20,040 63,014 1,011 1,948 12,728 6 Refunds 47,299 54,498 60,692 49,217 5,938 54,024 861 854 -82 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 1,827 11,558 2,985 8 Refunds 12,596 16,784 24,758 8,028 11,467 13,809 1,360 636 1,366 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 94,278 110,521 16,780 16,120 21,462 10 Payroll employment taxes and contributions2 156,932 172,744 179,010 88,795 85,063 90,912 14,151 15,435 1199,,444466 11 Self-employment taxes and contributions3 6,041 7,941 6,756 7,357 177 6,427 103 0 478 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 2,166 289 1,112 13 Other net receipts14 3,984 4,212 4,436 2,119 2,181 2,1% 360 396 427 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 3,259 3,011 3,148 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 904 855 776 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 453 484 488 17 Miscellaneous receipts5 13,790 16,161 15,594 7,984 7,891 7,751 1,637 1,072 1,163 OUTLAYS 18 All types' 657,204 728,424 795,917 348,683 390,847 396,477 67,792 74,702 68,052 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 17,947 19,576 18,283 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 318 2,647 709 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 777 480 503 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 342 534 255 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 974 1,221 %3 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 766 1,452 1,835 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 -288 565 709 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 2,118 2,030 1,953 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 686 752 434 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,205 2,214 2,476 29 Health1 65,982 74,017 81,157 37,219 39,073 41,206 7,064 7,149 7,175 30 Income security 225,101 248,343 280,244 112,782 133,779 143,001 22,810 24,040 23,281 31 Veterans benefits and services 22,988 23,955 24,845 10,865 13,241 11,334 2,051 3,336 1,202 32 Administration of justice 4,696 4,671 5,014 2,334 2,373 2,522 396 448 487 33 General government 4,614 4,726 4,991 2,400 2,322 2,434 535 364 88 34 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 337 64 1,153 35 Net interest6 68,726 84,697 89,774 41,883 44,948 42,358 9,464 8,712 7,808 36 Undistributed offsetting receipts7 -16,509 -13,270 -21,424 -6,490 -8,333 -8,885 -710 -889 -1,263 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 1985. 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 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 1,034.7 1,066.4 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 1415.3 2 Public debt securities 1,028.7 1,061.3 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 1,410.7 3 Held by public 825.5 858.9 867.9 925.6 987.7 1,043.3 1,090.3 1,138.2 1174.4 4 Held by agencies 203.2 202.4 211.7 216.4 209.4 201.2 229.3 239.0 236.3 5 Agency securities 6.0 5.1 5.0 5.0 4.8 4.8 4.7 4.7 4.6 6 Held by public 4.6 3.9 3.9 3.7 3.7 3.7 3.6 3.6 3.5 7 Held by agencies 1.4 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,029.7 1,062.2 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 1,411.4 9 Public debt securities 1,028.1 1,060.7 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 1,410.1 10 Other debt1 1.6 1.5 1.5 1.5 1.4 1.4 1.4 1.3 1.3 11 MEMO: Statutory debt limit 1,079.8 1,079.8 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 1,389.0 1,490.0 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 1984 Type and holder 1979 1980 1981 1982 Oct. Jan. Feb. 1 Total gross public debt 1,028.7 1,197.1 1,384.6 1,389.2 1,410.7 1,437.4 1,457.5 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,383.3 1,387.9 1,400.9 1,435.6 1,455.8 3 Marketable 530.7 623.2 720.3 881.5 1,035.3 1,044.3 1,050.9 1,081.9 1,100.1 4 Bills 172.6 216.1 245.0 311.8 339.0 335.3 343.8 346.9 349.5 5 Notes 283.4 321.6 375.3 465.0 566.2 575.3 573.4 597.6 608.0 6 Bonds 74.7 85.4 99.9 104.6 129.2 133.8 633.7 137.4 142.6 7 Nonmarketable1 313.2 305.7 307.0 314.0 347.9 343.5 350.0 353.7 355.7 8 Convertible bonds2 2.2 9 State and local government series 24.6 23.8 23.0 25.7 35.3 35.7 36.1 36.7 37.5 10 Foreign issues3 28.8 24.0 19.0 14.7 11.5 10.5 10.4 10.8 9.8 11 Government 23.6 17.6 14.9 13.0 11.5 10.5 10.4 10.8 9.8 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 70.6 70.9 70.7 71.0 71.2 14 Government account series4 177.5 185.1 196.7 205.4 230.3 226.2 231.9 235.0 237.0 15 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.3 1.3 9.8 1.8 1.8 By holder5 16 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 234.6 230.4 236.3 17 Federal Reserve Banks 117.5 121.3 131.0 139.3 146.1 149.4 151.9 18 Private investors 540.5 616.4 694.5 848.4 1022.6 19 Commercial banks 96.4 116.0 109.4 131.4 188.9 20 Mutual savings banks 4.7 5.4 5.2 n.a. n.a. 21 Insurance companies 16.7 20.1 19.1 38.7 48.9 22 Other companies 22.9 25.7 37.8 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 71.5 25 Other securities 36.2 56.7 75.6 48.2 61.9 26 Foreign and international6 124.4 127.7 141.4 149.4 168.9 27 Other miscellaneous investors7 90.1 106.9 152.3 233.2 n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Data for Federal Reserve Banks and U.S. government agencies and trust tion Administration, depository bonds, retirement plan bonds, and individual funds are actual holdings; data for other groups are Treasury estimates. retirement bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, United States. may be exchanged (or converted) at the owner's option for IV2 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 • March 1983 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1983 1984 1983 and 1984, week ending Wednesday IItteemm 11998800 11998811 11998822 Dec/ Jan. Feb. Dec. 28 Jan. 4 Jan. 11 Jan. 18 Jan. 25 Feb. 1 Immediate delivery1 1 U.S. government securities 18,331 24,728 32,271 42,361 45,659 52,384 46,296 50,729 47,025 49,132 38,671 44,676 By maturity 2 Bills 11,413 14,768 18,398 23,494 23,162 24,926 24,951 26,128 23,137 24,571 20,455 22,023 3 Other within 1 year 421 621 810 932 1,119 902 812 1,137 993 1,467 865 1,080 4 1-5 years 3,330 4,360 6,272 7,941 9,629 11,808 12,536 9,406 9,505 10,280 7,593 11,476 5 5-10 years 1, 464 2,451 3,557 5,134 5,647 8,024 4,679 7,034 5,944 6,055 5,118 5,052 6 Over 10 years 1,704 2,528 3,234 4,861 6,102 6,725 3,320 7,024 7,446 6,760 4,641 5,046 By type of customer 7 U.S. government securities dealers 1,484 1,640 1,769 2,429 2,751 4,119 2,862 2,957 2,679 3,116 2,386 2,876 8 U.S. government securities brokers 7,610 11,750 15,659 19,146 21,090 24,951 18,900 21,229 21,978 23,170 17,992 20,055 9 All others2 9,237 11,337 15,344 20,786 21,817 23,314 24,535 26,544 22,368 22,846 18,293 21,745 10 Federal agency securities 3,258 3,306 4,142 5,925 6,538 7,574 4,797 6,493 6,195 7,773 6,174 6,565 11 Certificates of deposit 2,472 4,477 5,001 4,431 4,886 5,374 4,187 4,844 5,622 5,272 3,765 4,338 12 Bankers acceptances 1,807 2,502 2,370 3,119 2,702 2,010 2,636 3,353 3,496 2,595 2,937 13 Commercial paper 6,128 7,595 7,964 8,891 8,114 8,520 11,083 9,870 8,266 7,333 8,397 Futures transactions3 14 Treasury bills 3,523 5,031 6,449 5,431 6,936 5,794 4,336 5,994 6,782 4,784 4,031 15 Treasury coupons n.a. 1,330 1,490 2,552 2,625 3,581 1,399 2,116 2,589 3,412 2,491 1,964 16 Federal agency securities 234 259 194 157 302 142 293 207 240 159 140 Forward transactions4 17 U.S. government securities 365 835 1,175 713 1,620 2,021 833 432 988 772 842 18 Federal agency securities 1,370 982 1,857 2,140 2,596 1,193 2,095 2,247 2,607 1,584 1,939 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 1984 1983 and 1984, week ending Wednesday IItteemm 11998800 11998811 11998822 Dec/ Jan. Feb. Dec. 21 Dec. 28 Jan. 4 Jan. 11 Jan. 18 Positions Net immediate1 1 U.S. government securities 4,306 9,033 9,328 -2,336 3,130 1,161 -6,840 -2,663 -2,065 69 4,060 2 Bills 4,103 6,485 4,837 -1,437 2,730 3,101 -3,461 -2,182 -4,052 -726 2,869 3 Other within 1 year -1,062 -1,526 -199 47 -158 -227 -112 -174 -376 -276 22 4 1-5 years 434 1,488 2,932 712 1,552 -428 -909 2,322 2,450 1,824 1,611 5 5-10 years 166 292 -341 -745 -705 -1,610 -1,527 -1,481 621 -63 -506 6 Over 10 years 665 2,294 2,001 -912 -288 324 -831 -1,149 -709 -690 64 7 Federal agency securities.. 797 2,277 3,712 11,480 11,236 12,391 12,006 11,787 11,610 11,192 11,773 8 Certificates of deposit 3,115 3,435 5,531 7,449 6,528 7,322 6,782 6,682 7,091 6,263 6,588 9 Bankers acceptances 1,746 2,832 4,178 3,494 3,244 4,032 3,875 3,397 3,534 4,061 10 Commercial paper 2,658 3,317 3,822 2,754 2,771 3,940 4,011 3,746 3,066 2,900 Futures positions 11 Treasury bills -8,934 -2,508 -2,926 -10,286 -7,788 -21 -5,000 -6,512 -9,676 -10,106 12 Treasury coupons n.a. -2,733 -2,361 1,016 758 1,252 1,423 1,822 1,386 1,121 554 13 Federal agency securities.. 522 -224 386 38 -174 384 426 397 228 10 Forward positions 14 U.S. government securities -603 -788 -2,971 -1,454 -2,257 -3,623 -764 -1,039 -1,190 -1,595 15 Federal agency securities.. -451 -1,190 -7,738 -7,506 -8,021 -7,863 -7,795 -7,814 -7,648 -8,033 Financing2 Reverse repurchase agreements3 16 Overnight and continuing 14,568 26,754 36,710 37,309 1 36,151 37,931 41,514 35,267 37,467 17 Term agreements 1 32,048 48,247 65,578 60,280 T 66,290 65,542 60,119 60,504 60,245 Repurchase agreements4 n.a. n.a. 18 Overnight and continuing 1 35,919 49,695 65,095 67,685 1 65,393 62,703 71,743 68,129 67,326 19 Term agreements t 29,449 43,410 53,560 51,123 T 52,841 53,818 48,197 49,321 52,197 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 1984 AAggeennccyy 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. 1 Federal and federally sponsored agencies 188,665 221,946 237,085 236,931 236,610 239,121 240,177 239,716 239,872 2 Federal agencies 28,606 31,806 33,055 33,420 33,744 33,735 33,813 33,940 33,919 3 Defense Department1 610 484 354 274 264 258 253 243 234 4 Export-Import Bank2'3 11,250 13,339 14,218 14,564 14,740 14,740 14,740 14,853 14,852 5 Federal Housing Administration4 477 413 288 213 206 203 197 194 173 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 14,675 14,840 14,840 14,945 14,970 14,980 9 United States Railway Association6 492 202 194 125 125 125 109 111 111 10 Federally sponsored agencies7 160,059 190,140 204,030 203,511 202,866 205,386 206,364 205,776 205,953 11 Federal Home Loan Banks 37,268 54,131 55,967 49,081 49,283 49,956 49,285 48,930 48,344 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 5,875 6,134 6,950 7,024 6,793 6,679 13 Federal National Mortgage Association 55,182 58,749 70,052 72,163 71,258 71,965 73,531 74,594 74,676 14 Farm Credit Banks 62,923 71,359 71,896 73,744 73,046 73,465 73,474 72,409 73,023 15 Student Loan Marketing Association (8) 421 1,591 2,648 3,145 3,050 3,050 3,050 3,231 MEMO 16 Federal Financing Bank debt 87,460 110,698 126,424 134,505 136,081 134,799 135,361 135,791 135,940 Lending to federal and federally sponsored 17 Export-Import Bank3 10,654 12,741 14,177 14,493 14,676 14,676 14,676 14,789 14,789 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 12,950 13,115 13,175 13,220 13,245 13,255 21 United States Railway Association6 492 202 194 125 125 125 109 111 111 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 56,386 55,691 55,916 55,916 55,266 54,776 23 Rural Electrification Administration 9,196 13,516 17,157 18,638 18,936 19,093 19,216 19,766 19,927 24 Other 11,262 12,740 22,774 25,759 27,384 25,660 26,070 26,460 26,928 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 • March 1983 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 Type of o is r s u u e s e o r issuer, 11998800 11998811 11998822 May June' July Aug.' Sept.' Oct.' Nov.' Dec. 1 AU issues, new and refunding1 48,367 47,732 78,950 9,583 7,555 4,370r 6,194 6,160 6,650 5,829 8,854 Type of issue 2 General obligation 14,100 12,394 21,088 3,571 1,550 860r 1,614 1,266 1,935 1,679 1,134 3 U.S. government loans2 38 34 225 6 7 7 9 14 15 15 15 4 Revenue 34,267 35,338 57,862 6,012 6,005 3,510' 4,580 4,894 4,715 4,150 7,720 5 U.S. government loans2 57 55 461 14 16 26 29 35 39 39 39 Type of issuer 6 State 5,304 5,288 8,406 830 277 484 673 452 856 405 198 7 Special district and statutory authority 26,972 27,499 45,000 4,478 4,260 3,009 3,357 4,199 4,387 3,318 5,790 8 Municipalities, counties, townships, school districts 16,090 14,945 25,544 4,275 3,018 877' 2,164 1,509 1,407 2,106 2,866 9 Issues for new capital, total 46,736 46,530 74,613 6,989 6,049 3,884' 4,612 5,512 5,187 5,333 8,438 Use of proceeds 10 Education 4,572 4,547 6,444 828 887 535 714 527 457 515 744 11 Transportation 2,621 3,447 6,256 419 229 274 261 195 250 336 421 12 Utilities and conservation 8,149 10,037 14,254 1,513 939 268 285 1,238 605 1,101 1,230 13 Social welfare 19,958 12,729 26,605 2,069 2,120 1,920 2,139 2,334 2,580 2,080 2,676 14 Industrial aid 3,974 7,651 8,256 708 669 393' 254 494 323 516 2,317 15 Other purposes 7,462 8,119 12,797 1,452 1,205 494 r 959 724 972 785 1,050 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 11998811 11998822 11998833 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues'<2 70,441 84,198 98,845 11,489 8,165 6,474 5,941 6,568 6,592 8,103 6,812 2 Bonds 45,092 53,636 47,266 7,017 2,244 2,550 2,547 2,865 3,055 4,075 3,173 Type of offering 3 Public 38,103 43,838 47,266 7,017 2,244 2,550 2,547 2,865 3,055 4,075 3,173 4 Private placement 6,989 9,798 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Industry group 5 Manufacturing 12,325 13,123 8,133 2,158 706 60 200 282 367 22 423 6 Commercial and miscellaneous 5,229 5,681 5,374 1,055 425 228 458 353 114 23 201 7 Transportation 2,052 1,474 1,086 150 115 148 0 0 0 111 105 8 Public utility 8,963 12,155 7,066 1,115 363 322 355 590 510 910 120 9 Communication 4,280 2,265 3,380 505 250 1,100 0 100 50 0 0 10 Real estate and financial 12,243 18,938 22,227 2,034 385 692 1,534 1,540 2,014 3,009 2,324 11 Stocks3 25,349 30,562 51,579 4,472 5,921 3,924 3,394 3,703 3,842 4,028 3,639 Type 12 Preferred 1,797 5,113 7,213 492 665 290 247 644 300 433 253 13 Common 23,552 25,449 44,366 3,980 5,256 3,634 3,147 3,059 3,542 3,595 3,386 Industry group 14 Manufacturing 5,074 5,649 14,135 1,545 2,449 1,015 1,309 962 744 458 649 15 Commercial and miscellaneous 7,557 7,770 13,112 922 1,358 1,415 743 997 868 1,598 852 16 Transportation 779 709 2,729 221 109 337 145 165 305 192 413 17 Public utility 5,577 7,517 5,001 264 550 72 263 200 588 622 245 18 Communication 1,778 2,227 1,822 8 138 20 236 0 36 13 12 19 Real estate and financial 4,584 6,690 14,780 1,512 1,317 1,065 698 1,379 1,301 1,145 1,468 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 1984 IItteemm 11998822 11998833rr June July Aug. Sept. Oct. Nov. Dec/ Jan. INVESTMENT COMPANIES' 1 Sales of own shares2 45,675 84,793 8,107 6,944 6,032 5,915 6,532 6,341 6,846 10,319 2 Redemptions of own shares3 30,078 57,120 5,416 4,500 4,885 4,412 4,264 3,920 5,946 5,544 3 Net sales 15,597 27,673 2,691 2,444 1,147 1,503 2,268 2,421 900 4,775 4 Assets4 76,841 113,599 106,449 104,279 104,494 109,455 107,314 113,052 113,599 114,839 5 Cash position3 6,040 8,343 9,110 8,815 8,045 8,868 8,256 9,395 8,343 9,180 6 Other 70,801 105,256 97,339 95,464 93,449 100,587 99,058 103,657 105,256 105,659 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 Q1 Q2 Q3 Q4 Q1 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 • March 1983 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Q3 Q4 Q1 Q2 Q3 1 Current assets 912.7 1,043.7 1,214.8 1,327.0 1,419.3 1,441.8 1,425.4 1,436.5 1,464.2 1,522.4 2 Cash 97.2 105.5 118.0 126.9 131.8 126.9 144.0 139.7 145.7 148.4 3 U.S. government securities 18.2 17.2 16.7 18.7 17.4 18.9 22.4 25.8 27.5 26.3 4 Notes and accounts receivable 330.3 388.0 459.0 506.8 530.3 534.2 511.0 517.9 534.3 562.7 5 Inventories 376.9 431.8 505.1 542.8 585.1 596.5 575.2 573.2 570.5 591.1 6 Other 90.1 101.1 116.0 131.8 154.6 165.3 172.6 179.9 186.2 193.8 7 Current liabilities 557.1 669.5 807.3 889.3 976.3 1,007.6 977.8 986.3 997.7 1,038.6 8 Notes and accounts payable 317.6 383.0 460.8 513.6 558.8 562.7 552.8 543.2 551.6 578.8 9 Other 239.6 286.5 346.5 375.7 417.5 444.9 425.0 443.1 446.1 459.9 10 Net working capital 355.5 374.3 407.5 437.8 442.9 434.2 447.6 450.2 466.5 483.7 11 MEMO: Current ratio' 1.638 1.559 1.505 1.492 1.454 1.431 1.458 1.456 1.468 1.466 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 1199884411 Q3' Q4 Ql Q2 Q3 Q4 Ql1 Q21 1 Total nonfarm business 316.43 302.50 343.57 313.76 303.18 293.03 293.46 304.70 318.83 332.66 335.40 Manufacturing 2 Durable goods industries 56.44 51.78 62.78 56.61 50.51 50.74 4488..4488 53.06 5544..8855 5599..2211 5599..0011 3 Nondurable goods industries 63.23 59.75 66.93 61.65 59.72 59.12 60.31 58.06 61.50 65.49 67.25 Nonmanufacturing 4 Mining 15.45 11.83 14.34 14.57 13.41 12.03 10.91 11.93 1122..4433 13.57 1133..8877 Transportation 5 Railroad 4.38 3.92 4.73 4.01 4.35 3.35 33..6644 4.07 4.63 4.09 44..8855 6 Air 3.93 3.77 2.78 4.07 4.76 4.09 4.10 3.57 3.32 2.42 2.82 7 Other 3.64 3.50 4.49 3.21 3.22 3.60 3.14 3.36 3.91 4.57 4.31 Public utilities 8 Electric 33.40 34.99 35.54 34.73 35.15 33.97 34.86 35.84 35.31 35.51 35.72 9 Gas and other 8.55 7.00 9.24 8.29 7.85 7.64 6.62 6.38 7.37 8.21 8.95 10 Trade and services 86.95 87.94 100.25 86.88 84.36 82.38 85.85 91.06 92.44 98.56 97.93 11 Communication and other2 40.46 38.02 42.47 39.75 39.84 36.11 35.54 37.38 43.05 41.03 40.68 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 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 11998822 QL Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer 44.0 52.6 65.7 73.6 85.5 89.5 89.9 91.3 92.3 92.8 2 Business 55.2 63.3 70.3 72.3 80.6 81.0 82.2 84.9 86.8 95.2 Total 99.2 116.0 136.0 145.9 166.1 170.4 172.1 176.2 179.0 188.0 4 LESS: Reserves for unearned income and losses.... 12.7 15.6 20.0 23.3 28.9 30.5 29.7 30.4 30.1 30.6 5 Accounts receivable, net 86.5 100.4 116.0 122.6 137.2 139.8 142.4 145.8 148.9 157.4 6 Cash and bank deposits 2.6 3.5 1 7 Securities .9 1.3 Y 24.91 27.5 34.2 39.7 42.8 44.3 45.0 45.3 8 All other 14.3 17.3 J 9 Total assets 104.3 122.4 140.9 150.1 171.4 179.5 185.2 190.2 193.9 202.7 LIABILITIES 10 Bank loans 5.9 6.5 8.5 13.2 15.4 18.6 16.6 16.3 17.0 19.1 11 Commercial paper 29.6 34.5 43.3 43.4 51.2 45.8 45.2 49.0 49.7 53.6 Debt 12 Short-term, n.e.c 6.2 8.1 8.2 7.5 9.6 8.7 9.8 9.6 8.7 11.3 13 Long-term, n.e.c 36.0 43.6 46.7 52.4 54.8 63.5 64.7 64.5 66.2 65.4 14 Other 11.5 12.6 14.2 14.3 17.8 18.7 22.8 24.0 24.4 27.1 15 Capital, surplus, and undivided profits 15.1 17.2 19.9 19.4 22.8 24.2 26.0 26.7 27.9 26.2 16 Total liabilities and capital 104.3 122.4 140.9 150.1 171.4 179.5 185.2 190.2 193.9 202.7 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 DDDeeeccc... 333111,,, 111999888333''' Oct. Nov. Dec. Oct. Nov. Dec. Oct. Nov. Dec. 1 Total 95,218 986 1,793 2,721 25,841 29,988 27,338 24,855 28,195 24,617 2 Retail automotive (commercial vehicles) 21,267 680 1,320 485 1,925 2,592 1,836 1,245 1,272 1,351 3 Wholesale automotive 15,038 310 662 583 7,124 8,516 7,690 6,814 7,854 7,107 4 Retail paper on business, industrial, and farm equipment 28,797 -406 -198 602 1,049 1,504 1,610 1,455 1,702 1,008 5 Loans on commercial accounts receivable and factored commercial accounts receivable 10,332 149 17 121 13,822 15,344 13,441 13,673 15,327 13,320 6 All other business credit 19,784 253 -8 930 1,921 2,032 2,761 1,668 2,040 1,831 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • March 1983 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 1984 IItteemm 11998811 11998822 11998833 July Aug. Sept. Oct. Nov. Dec. Jan. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms' 1 Purchase price (thousands of dollars) 90.4 94.6 92.6 97.3 94.4 100.7 95.8 98.0 94.8 93.0 2 Amount of loan (thousands of dollars) 65.3 69.8 69.4 72.3 67.3 76.5 72.5 76.7 73.3 71.8 3 Loan/price ratio (percent) 74.8 76.6 77.0 76.5 73.3 78.5 78.4 80.5 79.1 79.2 4 Maturity (years) 27.7 27.6 26.7 28.1 25.7 27.2 26.9 26.5 27.3 27.7 5 Fees and charges (percent of loan amount)2 2.67 2.95 2.40 2.54 1.96 2.45 2.33 2.54 2.56 2.55 6 Contract rate (percent per annum) 14.16 14.47 12.20 12.02 12.01 12.08 11.80 11.82 11.94 11.82 Yield (percent per annum) 7 FHLBB series5 14.74 15.12 12.66 12.50 12.38 12.54 12.25 12.34 12.42 12.30 8 HUD series4 16.52 15.79 13.43 14.00 13.90 13.60 13.52 13.48 13.41 13.28 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 16.31 15.31 13.11 14.23 13.78 13.55 13.23 13.23 13.25 13.08 10 GNMA securities6 15.29 14.68 12.26 12.54 13.01 12.73 12.42 12.51 12.49 12.35 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 58,675 66,031 74,847 74,630 75,057 75,174 75,665 76,714 78,256 79,049 12 FHA/VA-insured 39,341 39,718 37,393 37,092 36,894 36,670 36,455 36,349 36,211 40,873 13 Conventional 19,334 26,312 37,454 37,583 38,163 38,505 39,210 40,365 42,045 38,177 Mortgage transactions (during period) 14 Purchases 6,112 15,116 17,554 1,358 1,213 1,203 1,244 1,348 2,204 1,285 15 Sales 2 2 3,528 786 121 464 257 0 250 20 Mortgage commitments1 16 Contracted (during period) 9,331 22,105 18,607 1,198 1,282 2,739 1,882 997 1,471 1,772 17 Outstanding (end of period) 3,717 7,606 5,461 5,099 5,165 6,684 7,182 6,493 5,461 5,470 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 5,245 5,153 6,182 6,149 6,857 6,963 7,093 7,633' 19 FHA/VA 2,236 1,921 971 964 961 947 940 941' 20 Conventional 3,010 3,224 5,211 5,185 5,896 6,016 6,153 6,691' Mortgage transactions (during period) 21 Purchases 3,789 23,671 n.a. 1,523 1,621 2,263 2,886 1,287 1,685' n a. 22 Sales 3,531 24,164 1,491 1,588 1,556 2,750 1,143 1,115' Mortgage commitments9 23 Contracted (during period) 6,974 28,187 4,671 6,367 3,283 2,598 2,093 1,704' 24 Outstanding (end of period) 3,518 7,549 10,794 15,519 16,512 16,198 16,994 16,964' 1. Weighted averages based on sample surveys of mortgages originated by 6. Average net yields to investors on Government National Mortgage Associamajor institutional lender groups; compiled by the Federal Home Loan Bank tion guaranteed, mortgage-backed, fully modified pass-through securities, assum- Board in cooperation with the Federal Deposit Insurance Corporation. ing prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying the 2. Includes all fees, commissions, discounts, and "points" paid (by 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; from Department of Housing and Urban Development. 8. Includes participation as well as whole loans. 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing 9. Includes conventional and government-underwritten loans. FHLMC's mort- Administration-insured first mortgages for immediate delivery in the private gage commitments and mortgage transactions include activity under mortgage/ secondary market. Any gaps in data are due to periods of adjustment to changes in securities swap programs, while the corresponding data for FNMA exclude swap maximum permissible contract rates. activity. 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 11998811 11998822 11998833 Q4 Ql Q2 Q3 Q4 1 All holders 1,583,264 1,653,633 1,821,901' 1,653,633 1,680,296' 1,721,676' 1,773,625' 1,821,901' 2 1- to 4-family 1,065,294 1,104,634 l,213,632r 1,104,634 1,121,035' 1,145,830' 1,181,175' 1,213,632' 3 Multifamily 136,354 140,431 150,783' 140,431 141,390' 144,615' 146,924' 150,783' 4 Commercial 279,889 301,862 347,926' 301,862 310,959' 323,263' 336,514' 347,926' 5 Farm 101,727 106,706 109,560' 106,706 106,912' 107,968' 109,012' 109,56C 6 Major financial institutions 1,040,827 1,022,161 1,106,119 1,022,161 1,027,468' 1,047,312' 1,078,113' 1,106,119 7 Commercial banks' 284,536 300,203 329,745 300,203 303,371' 310,217' 320,299' 329,745 8 1- to 4-family 170,013 173,157 182,679 173,157 172,346' 174,032' 178,054' 182,679 9 Multifamily 15,132 16,421 17,971 16,421 16,230' 16,876' 17,424' 17,971 10 Commercial 91,026 102,219 119,862 102,219 106,301' 110,437' 115,692' 119,862 11 Farm 8,365 8,406 9,233 8,406 8,494' 8,872' 9,129' 9,233 12 Mutual savings banks 99,997 97,805 133,325 97,805 105,378 119,236 129,645 133,325 13 1- to 4-family 68,187 66,777 95,249 66,777 73,240 84,349 92,467 95,249 14 Multifamily 15,960 15,305 17,964 15,305 15,587 16,667 17,588 17,964 15 Commercial 15,810 15,694 20,083 15,694 16,522 18,192 19,562 20,083 16 Farm 40 29 29 29 29 28 28 29 17 Savings and loan associations 518,547 482,234 492,857 482,234 475,688 473,134 480,813 492,857 18 1- to 4-family 433,142 392,201 389,357 392,201 383,642 376,851 380,563 389,357 19 Multifamily 37,699 38,868 42,386 38,868 39,149 39,838 41,206 42,386 20 Commercial 47,706 51,165 61,114 51,165 52,897 56,445 59,044 61,114 21 Life insurance companies 137,747 141,919 150,192 141,919 143,031 144,725 147,356 150,192 22 1- to 4-family 17,201 16,743 15,503 16,743 16,388 15,860 15,534 15,503 23 Multifamily 19,283 18,847 19,201 18,847 18,825 18,778 18,857 19,201 24 Commercial 88,163 93,501 102,738 93,501 95,158 97,416 100,209 102,738 25 Farm 13,100 12,828 12,750 12,828 12,660 12,671 12,756 12,750 26 Federal and related agencies 126,094 138,185 146,951' 138,185 140,028 142,094 142,224 146,951' 27 Government National Mortgage Association 4,765 4,227 3,395r 4,227 3,753 3,643 3,475 3,395' 28 1- to 4-family 693 676 630' 676 665 651 639 63C 29 Multifamily 4,072 3,551 2,765' 3,551 3,088 2,992 2,836 2,765' 30 Farmers Home Administration 2,235 1,786 2,141' 1,786 2,077 1,605 600 2,141' 31 1- to 4-family 914 783 1,159' 783 707 381 211 1,159' 32 Multifamily 473 218 173' 218 380 555 32 173' 33 Commercial 506 377 409' 377 337 248 113 409' 34 Farm 342 408 400' 408 653 421 244 40C 35 Federal Housing and Veterans Administration 5,999 5,228 4,792' 5,228 5,138 5,084 5,050 4,792' 36 1- to 4-family 2,289 1,980 1,863' 1,980 1,867 1,911 2,061 1,863' 37 Multifamily 3,710 3,248 2,929' 3,248 3,271 3,173 2,989 2,929' 38 Federal National Mortgage Association 61,412 71,814 78,256' 71,814 73,666 74,669 75,174 78,256' 39 1- to 4-family 55,986 66,500 73,045' 66,500 68,370 69,396 69,938 73,045' 40 Multifamily 5,426 5,314 5,211' 5,314 5,296 5,273 5,236 5,211' 41 Federal Land Banks 46,446 50,350 51,154 50,350 50,544 50,858 51,069 51,154 42 1- to 4-family 2,788 3,068 3,007 3,068 3,059 3,030 3,008 3,007 43 Farm 43,658 47,282 48,147 47,282 47,485 47,828 48,061 48,147 44 Federal Home Loan Mortgage Corporation 5,237 4,780 7,213 4,780 4,850 6,235 6,856 7,213 45 1- to 4-family 5,181 4,733 7,162 4,733 4,795 6,119 6,799 7,162 46 Multifamily 56 47 51 47 55 116 57 51 47 Mortgage pools or trusts2 163,000 216,654 285,151' 216,654 234,596 252,665 272,611 285,151' 48 Government National Mortgage Association 105,790 118,940 159,237 118,940 127,939 139,276 151,597 159,237 49 1- to 4-family 103,007 115,831 155,188 115,831 124,482 135,628 147,761 155,188 50 Multifamily 2,783 3,109 4,049 3,109 3,457 3,648 3,836 4,049 51 Federal Home Loan Mortgage Corporation 19,853 42,964 58,586 42,964 48,008 50,934 54,152 58,586 52 1- to 4-family 19,501 42,560 57,945 42,560 47,575 50,446 53,539 57,945 53 Multifamily 352 404 641 404 433 488 613 641 54 Federal National Mortgage Association3 717 14,450 25,121' 14,450 18,157 20,933 23,819 25,121' 55 1- to 4-family 717 14,450 25,121' 14,450 18,157 20,933 23,819 25,121' 56 Farmers Home Administration 36,640 40,300 42,207' 40,300 40,492 41,522 43,043 42,207' 57 1- to 4-family 18,378 20,005 20,404' 20,005 20,263 20,728 21,083 20,404' 58 Multifamily 3,426 4,344 5,09C 4,344 4,344 4,343 5,042 5,09c 59 Commercial 6,161 7,011 7,351' 7,011 7,115 7,303 7,542 7,351' 60 Farm 8,675 8,940 9,362' 8,940 8,770 9,148 9,376 9,362' 61 Individual and others4 253,343 276,633 283,680 276,633 278,204 279,605 280,677 283,680 62 1- to 4-family5 167,297 185,170 185,320 185,170 185,479 185,515 185,699 185,320 63 Multifamily 27,982 30,755 32,352 30,755 31,275 31,868 31,208 32,352 64 Commercial 30,517 31,895 36,369 31,895 32,629 33,222 34,352 36,369 65 Farm 27,547 28,813 29,639 28,813 28,821 29,000 29,418 29,639 1. Includes loans held by nondeposit trust companies but not bank trust 5. Includes a new estimate of residential mortgage credit provided by individdepartments. uals. 2. Outstanding principal balances of mortgages backing securities insured or NOTE. Based on data from various institutional and governmental sources, with guaranteed by the agency indicated. some quarters estimated in part by the Federal Reserve in conjunction with the 3. Outstanding balances on FNMA's issues of securities backed by pools of Federal Home Loan Bank Board and the Department of Commerce. Separation of conventional mortgages held in trust. The program was implemented by FNMA in nonfarm mortgage debt by type of property, if not reported directly, and October 1981. interpolations and extrapolations when required, are estimated mainly by the 4. Other holders include mortgage companies, real estate investment trusts, Federal Reserve. Multifamily debt refers to loans on structures of five or more state and local credit agencies, state and local retirement funds, noninsured units. pension funds, credit unions, and U.S. agencies for which amounts are small or for which separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • March 1983 1.55 CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net ChangeA Millions of dollars 1983 1984 11998800 June July Aug. Sept. Oct. Nov. Dec. Jan. Amounts outstanding (end of period) 1 Total 313,472 331,697 344,798 353,012 358,020 363,662 367,604 371,561 376,390 387,927 386,448 By major holder 2 Commercial banks 147,013 147,622 152,069 156,603 159,666 163,313 165,971 168,352 170,823 177,252 177,641 3 Finance companies 76,756 89,818 94,322 96,349 97,319 97,708 97,274 97,370 97,522 97,688 96,471 4 Credit unions 44,041 45,954 47,253 48,652 49,139 50,121 51,123 51,767 52,578 53,471 53,882 5 Retailers2 28,448 29,551 30,202 27,804 27,900 28,067 28,319 28,713 29,668 33,183 31,859 6 Savings and loans 9,911 11,598 13,891 16,207 16,369 16,615 17,130 17,624 18,080 18,568 18,646 7 Gasoline companies 4,468 4,403 4,063 4,159 4,356 4,457 4,338 4,243 4,157 4,131 4,300 8 Mutual savings banks 2,835 2,751 2,998 3,238 3,271 3,381 3,449 3,492 3,562 3,634 3,649 By major type of credit 9 Automobile 116,838 125,331 130,227 136,183 138,689 141,677 142,477 143,621 144,663 146,078 146,842 10 Commercial banks 61,536 58,081 58,851 61,870 63,425 66,065 67,413 68,828 70,034 71,778 73,042 11 Indirect paper 35,233 34,375 35,178 (3) (3) (3) (3) (3) (3) (3) (3) 12 Direct loans 26,303 23,706 23,673 (3) (3) (3) (3) (3) (3) (3) (3) 13 Credit unions 21,060 21,975 22,5% 23,269 23,502 23,972 24,451 24,759 25,147 25,574 48,029 14 Finance companies 34,242 45,275 48,780 51,044 51,762 51,640 50,613 50,034 49,482 48,726 25,771 15 Revolving 58,352 62,819 67,184 64,899 65,856 66,913 67,904 68,921 70,742 77,467 75,652 16 Commercial banks 29,765 32,880 36,688 36,515 37,173 37,973 38,848 39,576 40,573 43,965 43,262 17 Retailers 24,119 25,536 26,433 24,225 24,327 24,483 24,718 25,102 26,012 29,371 28,090 18 Gasoline companies 4,468 4,403 4,063 4,159 4,356 4,457 4,338 4,243 4,157 4,131 4,300 19 Mobile home 17,322 18,373 18,988 19,647 19,750 19,882 20,087 20,256 20,366 20,471 20,468 20 Commercial banks 10,371 10,187 9,684 9,651 9,717 9,741 9,766 9,767 9,761 9,732 9,718 21 Finance companies 3,745 4,494 4,965 4,995 4,982 5,012 5,038 5,062 5,043 5,033 5,018 22 Savings and loans 2,737 3,203 3,836 4,485 4,530 4,598 4,741 4,878 5,004 5,139 5,161 23 Credit unions 469 489 503 516 521 531 542 549 558 567 571 24 Other 120,960 125,174 128,399 132,283 133,725 135,190 137,136 138,763 140,619 143,911 143,486 25 Commercial banks 45,341 46,474 46,846 48,567 49,351 49,534 49,944 50,181 50,455 51,777 51,619 26 Finance companies 38,769 40,049 40,577 40,310 40,575 41,056 41,623 42,274 42,997 43,929 43,424 27 Credit unions 22,512 23,490 24,154 24,867 25,116 25,618 26,130 26,459 26,873 27,330 27,540 28 Retailers 4,329 4,015 3,769 3,579 3,573 3,584 3,601 3,611 3,656 3,812 3,769 29 Savings and loans 7,174 8,395 10,055 11,722 11,839 12,017 12,389 12,746 13,076 13,429 13,485 30 Mutual savings banks 2,835 2,751 2,998 3,238 3,271 3,381 3,449 3,492 3,562 3,634 3,649 Net change (during period)4 31 Total 1,448 18,217 2,418 4,406 4,840 3,388 2,375 4,885 4,671 6,614 4,343 By major holder 32 Commercial banks -7,163 607 1,111 2,422 2,766 2,317 1,829 2,629 2,749 4,688 2,656 33 Finance companies 8,438 13,062 1,024 470 909 239 -721 620 205 -24 89 34 Credit unions -2,475 1,913 197 573 662 510 646 942 912 731 916 35 Retailers2 329 1,103 -91 368 272 5 245 150 251 659 338 36 Savings and loans 1,485 1,682 201 456 188 147 507 376 438 513 217 37 Gasoline companies 739 -65 -51 77 5 65 -167 131 58 -31 72 38 Mutual savings banks 95 -85 27 40 38 105 36 37 58 78 55 By major type of credit 39 Automobile 477 8,495 1,491 1,973 2,421 2,521 285 1,772 1,238 2,019 2,555 40 Commercial banks -5,830 -3,455 527 1,284 1,482 2,359 1,243 1,499 1,302 2,131 2,042 41 Indirect paper -3,104 -858 429 (3) (3) (3) (3) (3) (?) (3) (3) 42 Direct loans -2,726 -2,597 98 (3) (3) (3) (3) (3) (3) (3) (3) 43 Credit unions -1,184 914 89 275 328 232 309 451 436 349 85 44 Finance companies 7,491 11,033 875 414 611 -70 -1,267 -178 -500 -461 428 45 Revolving 1,415 4,467 501 1,210 821 313 479 1,145 1,300 1,723 487 46 Commercial banks -97 3,115 650 806 556 217 404 856 999 1,148 100 47 Retailers 773 1,417 -98 327 260 31 242 158 243 606 315 48 Gasoline companies 739 -65 -51 77 5 65 -167 131 58 -31 72 49 Mobile home 483 1,049 -37 151 141 70 150 102 107 136 166 50 Commercial banks -276 -186 -74 28 68 -14 8 -10 0 18 49 51 Finance companies 355 749 -15 -6 7 15 1 -16 -14 -25 50 52 Savings and loans 430 466 49 123 59 64 134 118 111 135 58 53 Credit unions -25 20 3 6 7 5 7 10 10 8 9 54 Other -927 4,206 463 1,072 1,457 484 1,461 1,866 2,026 2,736 1,135 55 Commercial banks -960 1,133 8 304 660 -245 174 284 448 1,391 465 56 Finance companies 592 1,280 164 62 291 294 545 814 719 462 -46 57 Credit unions -1,266 975 105 292 327 273 330 481 466 374 479 58 Retailers -444 -314 7 41 12 -26 3 -8 8 53 23 59 Savings and loans 1,056 1,217 152 333 129 83 373 258 327 378 159 60 Mutual savings banks 95 -85 27 40 38 105 36 37 58 78 55 A 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, $80.7 billion at the end of entertainment companies. 1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983. 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 1984 IItteemm 11998811 11998822 11998833 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks1 11111111111116666666666666.............55555555555554444444444444 11111111111116666666666666.............88888888888883333333333333 11111111111113333333333333.............99999999999992222222222222 11111111111113333333333333.............55555555555550000000000000 11111111111113333333333333.............44444444444446666666666666 1111133333.....3333322222 11111111111118888888888888.............00000000000009999999999999 11111111111118888888888888.............66666666666665555555555555 11111111111116666666666666.............66666666666668888888888888 11111111111116666666666666.............22222222222228888888888888 11111111111116666666666666.............33333333333339999999999999 1111166666.....1111166666 11111111111117777777777777.............44444444444445555555555555 11111111111118888888888888.............00000000000005555555555555 11111111111115555555555555.............99999999999991111111111111 11111111111115555555555555.............55555555555558888888888888 11111111111115555555555555.............44444444444447777777777777 1111155555.....4444455555 11111111111117777777777777.............77777777777778888888888888 11111111111118888888888888.............55555555555551111111111111 11111111111118888888888888.............77777777777773333333333333 11111111111118888888888888.............77777777777775555555555555 11111111111118888888888888.............77777777777775555555555555 1111188888.....7777733333 Auto finance companies 11111111111116666666666666.............11111111111117777777777777 11111111111116666666666666.............11111111111115555555555555 11111111111112222222222222.............55555555555558888888888888 11111111111112222222222222.............77777777777777777777777777 111111111333333333.........666666666222222222 111111111333333333.........555555555444444444 11111111111113333333333333.............55555555555550000000000000 111111111333333333.........999999999222222222 111111111444444444.........111111111888888888 22222222222220000000000000.............00000000000000000000000000 22222222222220000000000000.............77777777777775555555555555 11111111111118888888888888.............77777777777774444444444444 11111111111118888888888888.............22222222222225555555555555 111111111888888888.........222222222111111111 111111111888888888.........111111111555555555 11111111111118888888888888.............11111111111116666666666666 111111111888888888.........000000000666666666 111111111777777777.........555555555444444444 OTHER TERMS3 Maturity (months) 44444444444445555555555555.............4444444444444 44444444444446666666666666.............0000000000000 44444444444445555555555555.............9999999999999 44444444444445555555555555.............9999999999999 444444444666666666.........222222222 444444444666666666.........222222222 44444444444446666666666666.............3333333333333 444444444666666666.........333333333 444444444666666666.........333333333 33333333333335555555555555.............8888888888888 33333333333334444444444444.............0000000000000 33333333333337777777777777.............9999999999999 33333333333338888888888888.............0000000000000 333333333888888888.........000000000 333333333888888888.........000000000 33333333333338888888888888.............0000000000000 333333333777777777.........999999999 333333333999999999.........555555555 Loan-to-value ratio 88888888888886666666666666.............1111111111111 88888888888885555555555555.............3333333333333 88888888888886666666666666.............0000000000000 88888888888887777777777777 888888888777777777 888888888666666666 88888888888886666666666666 888888888777777777 888888888888888888 99999999999991111111111111.............8888888888888 99999999999990000000000000.............3333333333333 99999999999992222222222222.............0000000000000 99999999999993333333333333 999999999333333333 999999999333333333 99999999999993333333333333 999999999222222222 999999999222222222 Amount financed (dollars) 7777777777777,,,,,,,,,,,,,333333333333333333333333339999999999999 8888888888888,,,,,,,,,,,,,111111111111177777777777778888888888888 8888888888888,,,,,,,,,,,,,777777777777788888888888887777777777777 8888888888888,,,,,,,,,,,,,777777777777722222222222224444444444444 888888888,,,,,,,,,777777777999999999222222222 888888888,,,,,,,,,999999999888888888222222222 9999999999999,,,,,,,,,,,,,111111111111111111111111118888888888888 999999999,,,,,,,,,111111111666666666777777777 999999999,,,,,,,,,000000000999999999999999999 4444444444444,,,,,,,,,,,,,333333333333344444444444443333333333333 4444444444444,,,,,,,,,,,,,777777777777744444444444446666666666666 5555555555555,,,,,,,,,,,,,000000000000033333333333333333333333333 5555555555555,,,,,,,,,,,,,111111111111100000000000003333333333333 555555555,,,,,,,,,111111111444444444444444444 555555555,,,,,,,,,222222222111111111333333333 5555555555555,,,,,,,,,,,,,333333333333311111111111116666666666666 555555555,,,,,,,,,444444444000000000111111111 555555555,,,,,,,,,333333333999999999222222222 1. Data for midmonth of quarter only. 3. At auto finance companies. 2. Before 1983 the maturity for new car loans was 36 months, and for mobile home loans was 84 months. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • March 1983 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rales. 1981 1982 1983 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997788 11997799 11998800 11998811 11998822 HI H2 HI H2 HK H2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 369.8 386.0 343.2 377.2 395.3 509.5 392.4 362.0 356.8 434.8 497.3 521.7 By sector and instrument 2 U.S. government 53.7 37.4 79.2 87.4 161.3 186.6 87.8 86.9 106.9 215.5 231.1 142.1 i Treasury securities 55.1 38.8 79.8 87.8 162.1 186.7 88.3 87.3 108.3 215.9 231.2 142.2 4 Agency issues and mortgages -1.4 -1.4 -.6 -.5 -.9 -.1 -.5 -.4 -1.4 -.4 -.1 -.1 5 Private domestic nonfinancial sectors 316.2 348.6 264.0 289.8 234.1 322.9 304.6 275.1 249.9 219.3 266.2 379.7 6 Debt capital instruments 199.7 211.2 192.0 158.4 152.4 227.9 179.3 137.5 139.7 166.1 221.1 234.7 7 Tax-exempt obligations 28.4 30.3 30.3 21.9 50.5 44.3 21.1 22.6 41.7 59.4 59.8 28.8 8 Corporate bonds 21.1 17.3 26.7 22.1 18.8 15.0 26.1 18.0 10.8 26.9 21.1 9.0 9 Mortgages 150.2 163.6 135.1 114.5 83.0 168.6 132.0 96.9 87.3 79.9 140.2 196.9 10 Home mortgages 112.2 120.0 96.7 75.9 56.6 111.4 92.6 59.2 55.8 58.6 92.9 129.8 11 Multifamily residential 9.2 7.8 8.8 4.3 1.3 9.2 4.9 3.7 4.2 -1.7 6.2 12.1 12 Commercial 21.7 23.9 20.2 24.6 20.0 45.2 25.2 23.9 21.4 18.6 40.1 50.3 13 Farm 7.2 11.8 9.3 9.7 5.2 2.9 9.3 10.1 5.9 4.4 1.0 4.7 14 Other debt instruments 116.5 137.5 72.0 131.5 81.6 95.0 125.3 137.6 110.1 53.2 45.1 145.0 15 Consumer credit 48.8 45.4 4.9 24.1 18.3 54.2 28.9 19.3 19.3 17.4 39.8 68.6 16 Bank loans n.e.c 37.4 51.2 36.7 54.7 54.4 19.1 45.5 63.9 70.1 38.8 6.6 31.6 17 Open market paper 5.2 11.1 5.7 19.2 -3.3 -1.2 12.0 26.3 6.5 -13.0 -16.3 14.0 18 Other 25.1 29.7 24.8 33.4 12.2 23.0 38.9 28.0 14.3 10.2 15.0 30.9 19 By borrowing sector 316.2 348.6 264.0 289.8 234.1 322.9 304.6 275.1 249.9 219.3 266.2 379.7 20 State and local governments 19.1 20.5 20.3 9.7 36.3 35.9 9.1 10.2 29.3 43.3 50.3 21.6 21 Households 169.4 176.4 117.5 120.6 86.3 163.6 139.8 101.3 87.6 86.1 128.5 198.7 22 Farm 14.6 21.4 14.4 16.3 9.0 3.9 20.1 12.5 9.0 9.1 -.4 8.2 23 Nonfarm noncorporate 32.4 34.4 33.7 39.6 29.8 62.0 39.8 39.5 34.6 24.9 51.3 72.7 24 Corporate 80.6 96.0 78.1 103.7 72.7 57.4 95.8 111.5 89.3 56.0 36.5 78.4 25 Foreign net borrowing in United States 33.8 20.2 27.2 27.2 15.7 19.2 31.9 22.5 12.8 18.6 18.5 19.9 26 Bonds 4.2 3.9 .8 5.4 6.6 3.3 3.3 7.6 2.4 10.8 4.4 2.2 27 Bank loans n.e.c 19.1 2.3 11.5 3.7 -6.2 5.9 3.1 4.2 -5.1 -7.2 14.7 -2.8 28 Open market paper 6.6 11.2 10.1 13.9 10.7 6.0 20.6 7.1 12.5 9.0 -4.6 16.5 29 U.S. government loans 3.9 2.9 4.7 4.2 4.5 4.0 4.9 3.5 3.0 6.0 4.0 4.0 30 Total domestic plus foreign 403.6 406.2 370.4 404.4 411.0 528.7 424.4 384.5 369.6 453.4 515.7 541.6 Financial sectors 31 Total net borrowing by financial sectors 74.6 82.5 63.3 85.4 69.3 88.6 87.4 83.4 89.8 48.7 74.1 103.2 By instrument 32 U.S. government related 37.1 47.9 44.8 47.4 64.9 68.1 45.2 49.6 61.3 68.4 68.0 68.3 33 Sponsored credit agency securities 23.1 24.3 24.4 30.5 14.9 1.6 28.9 32.1 23.6 6.3 -2.4 5.7 34 Mortgage pool securities 13.6 23.1 19.2 15.0 49.5 66.5 14.9 15.1 37.0 62.1 70.4 6622..55 .4 .6 1.2 1.9 .4 1.4 2.4 .8 36 Private financial sectors 37.5 34.6 18.5 38.0 4.4 20.5 42.2 33.8 28.5 -19.7 6.1 35.0 37 Corporate bonds 7.5 7.8 7.1 -.8 2.3 17.2 -.3 -1.4 -1.2 5.8 15.3 19.2 38 Mortgages .1 * -.1 -.5 .1 .1 -.8 -.2 .1 .1 .1 .1 39 Bank loans n.e.c 2.8 -.4 -.4 2.2 3.2 -2.9 3.2 1.1 5.2 1.2 -5.2 -.7 40 Open market paper 14.6 18.0 4.8 20.9 -2.0 13.2 23.5 18.4 14.0 -18.0 8.8 17.6 41 Loans from Federal Home Loan Banks 12.5 9.2 7.1 16.2 .8 -7.0 16.7 15.8 10.4 -8.8 -12.9 -1.2 By sector 42 Sponsored credit agencies 23.5 24.8 25.6 32.4 15.3 1.6 30.3 34.5 24.4 6.3 -2.4 5.7 43 Mortgage pools 13.6 23.1 19.2 15.0 49.5 66.5 14.9 15.1 37.0 62.1 70.4 62.5 44 Private financial sectors 37.5 34.6 18.5 38.0 4.4 20.5 42.2 33.8 28.5 -19.7 66..11 35.0 45 Commercial banks 1.3 1.6 .5 .4 1.2 .6 .2 .5 .7 1.7 ..88 .5 46 Bank affiliates 7.2 6.5 6.9 8.3 1.9 8.6 6.9 9.7 9.7 -5.8 6.1 11.1 47 Savings and loan associations 13.5 12.6 7.4 15.5 -3.0 -5.2 16.8 14.1 9.1 -15.2 -10.8 .3 48 Finance companies 18.1 16.6 6.3 14.1 4.9 17.2 18.5 9.7 9.5 .2 10.7 23.7 49 REITs -1.4 -1.3 -2.2 .2 .1 .1 .2 .2 .1 .1 .1 .1 All sectors 50 Total net borrowing 478.2 488.7 433.7 489.8 480.3 617.3 511.8 467.9 459.4 502.1 589.8 644.8 51 U.S. government securities 90.5 84.8 122.9 133.0 225.9 254.7 131.8 134.3 167.6 284.0 299.1 210.4 52 State and local obligations 28.4 30.3 30.3 21.9 50.5 44.3 21.1 22.6 41.7 59.4 59.8 28.8 53 Corporate and foreign bonds 32.8 29.0 34.6 26.7 27.7 35.5 29.1 24.2 12.0 43.5 40.7 30.3 54 Mortgages 150.2 163.5 134.9 113.9 83.0 168.6 131.1 96.6 87.3 79.8 140.2 197.0 55 Consumer credit 48.8 45.4 4.9 24.1 18.3 54.2 28.9 19.3 19.3 17.4 39.8 68.6 56 Bank loans n.e.c 59.3 53.0 47.8 60.6 51.4 22.1 51.8 69.3 70.2 32.8 16.1 28.0 57 Open market paper 26.4 40.3 20.6 54.0 5.4 18.0 56.1 51.9 33.0 -22.1 -12.1 48.0 58 Other loans 41.9 42.4 37.8 55.8 17.9 19.9 61.8 49.7 28.4 7.4 6.1 33.7 External corporate equity funds raised in United States 59 Total new share issues 1.9 -3.8 22.2 -3.7 35.4 69.2 10.2 -17.7 23.7 47.0 87.1 51.3 60 Mutual funds -.1 .1 5.2 6.8 18.6 32.6 8.1 5.6 13.2 24.0 38.7 26.4 61 All other 1.9 -3.9 17.1 -10.6 16.8 36.6 2.1 -23.2 10.6 23.0 48.3 24.9 62 Nonfinancial corporations -.1 -7.8 12.9 -11.5 11.4 28.3 .9 -23.8 7.0 15.8 38.2 18.4 63 Financial corporations 2.5 3.2 2.1 .9 4.1 4.4 .5 1.2 3.8 4.4 4.4 4.5 64 Foreign shares purchased in United States -.5 .8 2.1 * 1.3 3.9 .7 -.7 -.2 2.9 5.7 2.0 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. 1981 1982 1983 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997788 11997799 11998800 11998811 11998822 11998833 HI H2 HI H2 HI' H2 1 Total funds advanced in credit markets to domestic nonfinancial sectors 369.8 386.0 343.2 377.2 395.3 509.5 392.4 362.0 356.8 434.8 497.3 521.7 By public agencies and foreign ? Total net advances 102.3 75.2 97.0 97.4 110099..33 111144..88 111133..88 8811..00 110077..99 111100..88 112299..55 110000..00 3 U.S. government securities 36.1 -6.3 15.7 17.2 17.9 27.7 31.2 3.1 17.7 18.2 51.2 4.2 4 Residential mortgages 25.7 35.8 31.7 23.4 61.1 75.9 21.9 25.0 48.1 74.0 80.7 71.0 5 FHLB advances to savings and loans 12.5 9.2 7.1 16.2 .8 -7.0 16.7 15.8 10.4 -8.8 -12.9 -1.2 6 Other loans and securities 28.0 36.5 42.4 40.6 29.5 18.3 44.1 37.1 31.7 27.4 10.4 26.1 Total advanced, by sector 7 U.S. government 17.1 19.0 23.7 24.1 16.7 9.8 27.9 20.3 14.2 19.1 8.2 11.3 8 Sponsored credit agencies 40.3 53.0 45.6 48.2 65.3 68.9 47.2 49.2 62.5 68.1 69.1 68.7 9 Monetary authorities 7.0 7.7 4.5 9.2 9.8 10.9 2.4 16.0 .1 19.5 12.1 9.7 10 Foreign 38.0 -4.6 23.2 16.0 17.6 25.2 36.4 -4.4 31.1 4.1 40.1 10.3 Agency and foreign borrowing not in line 1 11 Sponsored credit agencies and mortgage pools 37.1 47.9 44.8 47.4 64.9 68.1 45.2 49.6 61.3 6688..44 6688..00 6688..33 12 Foreign 33.8 20.2 27.2 27.2 15.7 19.2 31.9 22.5 12.8 18.6 18.5 19.9 Private domestic funds advanced N Total net advances 338.4 379.0 318.2 354.4 366.6 482.0 355.7 353.1 323.0 411.0 445544..22 550099..88 14 U.S. government securities 54.3 91.1 107.2 115.9 207.9 227.0 100.6 131.1 149.9 265.8 247.9 206.2 15 State and local obligations 28.4 30.3 30.3 21.9 50.5 44.3 21.1 22.6 41.7 59.4 59.8 28.8 16 Corporate and foreign bonds 23.4 18.5 19.3 19.4 15.4 12.1 20.9 17.9 -1.7 32.4 19.9 4.4 17 Residential mortgages 95.6 91.9 73.7 56.7 -3.3 44.6 75.5 37.9 11.7 -17.2 18.3 70.9 18 Other mortgages and loans 149.3 156.3 94.8 156.9 96.8 146.9 154.3 159.5 131.7 62.0 95.3 198.4 19 LESS: Federal Home Loan Bank advances 12.5 9.2 7.1 16.2 .8 -7.0 16.7 15.8 10.4 -8.8 -12.9 -1.2 Private financial intermediation 20 Credit market funds advanced by private financial institutions 302.3 294.7 262.3 305.2 271.2 368.5 317.3 293.1 272.8 268.9 347.5 389.5 21 Commercial banking 129.0 123.1 101.1 103.6 108.5 135.3 99.6 107.6 109.7 107.1 127.6 143.0 22 Savings institutions 72.8 56.7 54.9 27.2 30.6 128.6 41.5 12.8 29.5 31.0 130.6 126.6 73 Insurance and pension funds 75.0 66.4 74.4 79.3 94.2 102.1 75.3 83.4 95.4 93.0 107.4 96.8 24 Other finance 25.5 48.5 32.0 95.2 37.9 2.6 101.0 89.4 38.1 37.8 -18.0 23.1 75 Sources of funds 302.3 294.7 262.3 305.2 271.2 368.5 317.3 293.1 272.8 268.9 347.5 389.5 26 Private domestic deposits and RPs 141.0 142.0 168.6 211.7 173.4 200.3 213.8 209.6 163.4 182.7 211.6 189.0 27 Credit market borrowing 37.5 34.6 18.5 38.0 4.4 20.5 42.2 33.8 28.5 -19.7 6.1 35.0 78 Other sources 123.8 118.1 75.2 55.5 93.5 147.7 61.3 49.8 80.8 105.9 129.8 165.5 29 Foreign funds 6.5 27.6 -21.7 -8.7 -27.7 17.2 -8.7 -8.7 -30.1 -25.4 -18.9 53.4 30 Treasury balances 6.8 .4 -2.6 -1.1 6.1 -6.0 6.5 -8.7 -2.1 14.1 8.4 -20.4 31 Insurance and pension reserves 62.2 49.1 65.4 73.2 85.9 88.0 62.7 83.8 85.4 86.4 93.1 82.9 32 Other, net 48.4 41.0 34.0 -7.9 29.2 48.4 .8 -16.7 27.6 30.7 47.2 49.6 Private domestic nonfinancial investors 33 Direct lending in credit markets 73.6 118.9 74.4 87.2 99.7 134.0 80.6 93.8 78.7 112222..44 111122..88 115555..33 34 U.S. government securities 36.3 61.4 38.3 47.4 58.1 89.8 37.2 57.6 43.1 72.7 88.0 91.5 35 State and local obligations 3.6 9.9 7.0 9.6 30.9 31.9 9.5 9.7 28.4 33.4 47.7 16.1 36 Corporate and foreign bonds -1.8 5.7 .6 -8.9 -9.4 -6.1 -5.5 -12.4 -26.3 7.4 -19.1 6.8 37 Open market paper 15.6 12.1 -4.3 3.7 -2.0 7.7 -3.3 10.7 6.7 -10.7 -11.2 26.6 38 Other '. 19.9 29.8 32.9 35.4 22.1 10.8 42.7 28.2 26.8 19.6 7.4 14.2 39 Deposits and currency 152.2 151.4 180.0 221.7 179.4 217.5 222.6 220.7 166.2 192.1 231.9 203.2 40 Currency 9.3 7.9 10.3 9.5 8.4 13.9 8.0 11.0 4.5 12.3 14.1 13.8 41 Checkable deposits 16.2 18.7 5.0 18.1 13.0 22.5 29.8 6.5 6.7 19.1 53.1 -8.0 42 Small time and savings accounts 65.9 59.2 83.1 47.2 137.0 216.6 30.7 63.6 95.1 178.6 295.8 137.4 43 Money market fund shares 6.9 34.4 29.2 107.5 24.7 -44.1 104.1 110.8 39.4 10.0 -84.0 -4.2 44 Large time deposits 44.4 23.0 44.7 36.4 -5.2 -2.3 41.6 31.2 21.2 -31.6 -64.4 59.8 45 Security RPs 7.5 6.6 6.5 2.5 3.8 7.5 7.7 -2.6 1.1 6.6 11.0 4.0 46 Deposits in foreign countries 2.0 1.5 1.1 .5 -2.4 3.3 .8 .2 -1.8 -2.9 6.1 .4 47 Total of credit market instruments, deposits and currency 225.8 270.3 254.4 308.9 279.1 351.6 303.3 314.5 244.9 314.5 344.7 358.5 48 Public holdings as percent of total 25.3 18.5 26.2 24.1 26.6 21.7 26.8 21.1 29.2 24.4 25.1 18.5 49 Private financial intermediation (in percent) 89.3 77.7 82.4 86.1 74.0 76.5 89.2 83.0 84.4 65.4 76.5 76.4 50 Total foreign funds 44.6 23.0 1.5 7.3 -10.2 42.5 27.8 -13.1 1.0 -21.3 21.2 63.7 MEMO: Corporate equities not included above 51 Total net issues 1.9 -3.8 22.2 -3.7 35.4 69.2 10.2 -17.7 23.7 47.0 87.1 51.3 5? Mutual fund shares -.1 .1 5.2 6.8 18.6 32.6 8.1 5.6 13.2 24.0 38.7 26.4 53 Other equities 1.9 -3.9 17.1 -10.6 16.8 36.6 2.1 -23.2 10.6 23.0 48.3 24.9 54 Acquisitions by financial institutions 4.5 9.7 16.8 22.1 27.9 54.4 25.3 18.9 19.3 36.4 68.4 <10.3 55 Other net purchases -2.7 -13.5 5.4 -25.9 7.5 14.8 -15.1 -36.6 4.4 10.6 18.6 11.0 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 12 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates. outstanding, may be obtained from Flow of Funds Section, Division of Research 30. Demand deposits at commercial banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 31. Excludes net investment of these reserves in corporate equities. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • March 1983 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1983 1984 MMeeaassuurree 11998811 11998822 11998833 June July Aug. Sept. Oct. Nov/ Dec.' Jan/ Feb. 1 Industrial production1 151.0 138.6 147.6 146.4 149.7 151.8 153.8 155.0 155.3 156.1 158.0 159.9 Market groupings 2 Products, total 150.6 141.8 149.1 148.1 150.9 153.2 154.9 155.6 155.8 157.0 159.0 160.7 3 Final, total 149.5 141.5 147.1 146.4 149.0 150.7 152.1 152.7 153.2 154.8 156.8 158.2 4 Consumer goods 147.9 142.6 151.7 152.4 154.8 156.3 157.3 156.9 156.1 157.3 159.6 161.1 5 Equipment 151.5 139.8 140.8 138.2 141.0 143.1 144.9 147.0 149.1 151.3 153.0 154.2 6 Intermediate 154.4 143.3 156.6 154.5 158.1 162.2 165.4 166.5 165.5 165.3 167.1 169.7 7 Materials 151.6 133.7 145.2 143.7 147.8 149.7 152.2 154.0 154.5 154.6 156.4 158.8 Industry groupings 8 Manufacturing 150.4 137.6 148.3 147.4 150.6 152.8 155.1 156.2 156.4 156.9 159.2 161.5 Capacity utilization (percent)1-2 9 Manufacturing 79.4 71.1 75.2 74.9 76.4 77.3 78.4 78.9 78.8 78.9 80.0 81.0 10 Industrial materials industries 80.7 70.1 75.2 74.4 76.5 77.4 78.6 79.5 79.6 79.6 80.5 81.6 11 Construction contracts (1977 = 100)3 111.0 111.0 138.0 151.0 137.0 154.C 143.0 139.0 145.0 134.0 150.0 n.a. 12 Nonagricultural employment, total4 138.5 136.2 136.8 136.5 137.0 136.4 138.1 138.4 138.8 139.2 139.6 140.2 13 Goods-producing, total 109.4 102.6 101.5 100.9 101.8 102.2 102.7 103.7 104.3 104.7 105.6 106.2 14 Manufacturing, total 103.7 96.9 96.0 95.6 96.3 96.6 97.0 98.0 98.6 99.1 99.7 100.2 15 Manufacturing, production-worker ... 98.0 89.4 88.7 88.2 89.2 89.5 89.9 91.2 91.9 92.5 93.1 93.8 16 Service-producing 154.4 154.6' 156.1 156.1 156.3 155.1 157.5 157.5 157.8 158.1 158.3 158.8 17 Personal income, total 386.5 409.3 453.3 433.7 436.1 437.5 441.5 446.5 450.0 453.7 458.5 18 Wages and salary disbursements 349.7 367.2 389.8 389.0 391.9 393.6 396.2 400.6 401.7 404.1 409.4 19 Manufacturing 287.3 286.2 300.4 299.2 302.6 304.6 308.2 310.2 312.8 314.3 318.6 20 Disposable personal income5 373.7 397.3 426.3 422.0 429.0 430.1 434.1 438.9 442.4 445.9 450.6 n.a. 21 Retail sales6 330.6 326.0 372.9 378.9 380.3 373.7 379.1 385.3 389.8 390.3 399.0 Prices7 22 Consumer 272.4 289.1 298.4 298.1 299.3 300.3 301.8 302.6 303.1 303.5 305.2 23 Producer finished goods 269.8 280.7 285.2 285.0 285.7 286.1 285.1 287.9 286.8 287.1 289.4 1. The capacity utilization series has been revised back to January 1967. 6. Based on Bureau of Census data published in Survey of Current Business. 2. Ratios of indexes of production to indexes of capacity. Based on data from 7. Data without seasonal adjustment, as published in Monthly Labor Review. Federal Reserve, McGraw-Hill Economics Department, Department of Com- Seasonally adjusted data for changes in the price indexes may be obtained from merce, and other sources. the Bureau of Labor Statistics, U.S. Department of Labor. 3. Index of dollar value of total construction contracts, including residential, nonresidential and heavy engineering, from McGraw-Hill Information Systems NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, Company, F. W. Dodge Division. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 4. Based on data in Employment and Earnings (U.S. Department of Labor). of Current Business. Series covers employees only, excluding personnel in the Armed Forces. Figures for industrial production for the last two months are preliminary and 5. Based on data in Survey of Current Business (U.S. Department of Com- estimated, respectively. merce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1983 1983 1983 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 138.5 144.5 151.8 155.5 194.6 195.5 196.4 197.3 71.2 73.9 77.3 78.8 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 163.6 169.6 178.2 177.6 208.5 209.8 211.1 212.4 78.5 80.8 84.4 83.6 4 Manufacturing 138.4 145.2 152.8 156.5 195.7 196.6 197.5 198.4 70.7 73.8 77.4 78.9 5 Primary processing 137.0 145.2 152.8 156.4 194.3 194.8 195.3 195.8 70.5 74.6 78.3 79.9 6 Advanced processing 139.7 145.1 152.8 156.1 196.5 197.6 198.6 199.7 71.1 73.5 76.9 78.2 7 Materials 134.8 141.7 149.9 154.4 192.3 192.9 193.4 194.0 70.1 73.5 77.5 79.6 8 Durable goods 125.2 134.7 144.2 150.3 195.2 195.6 196.0 196.5 64.2 68.9 73.6 76.5 9 Metal materials 78.6 84.9 89.3 93.7 140.2 139.9 139.8 139.6 56.1 60.7 63.9 67.2 10 Nondurable goods 163.7 171.7 179.1 183.9 217.8 218.8 219.6 220.6 75.2 78.5 81.5' 83.4 11 Textile, paper, and chemical 169.3 179.6 188.0 193.8 229.4 230.7 231.6 232.7 73.8 77.9 81.2 83.2 12 Paper 149.9 153.4 162.8 167.7 165.3 166.1 166.9 167.7 90.7 92.3 97.5 100.0 13 Chemical 204.7 219.4 227.8 235.9 294.8 296.6 298.3 300.1 69.4 74.0 76.4 78.6 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 1983 1983 1984 SSeerriieess High Low High Low Feb. June July Aug. Sept. Oct. Nov/ Dec/ Jan/ Feb. Capacity utilization rate (percent) IS Total industry 88.4 71.1 87.3 76.5 71.0 74.8 76.3 77.3 78.2 78.7 78.7 79.0 79.8 80.7 16 Mining 91.8 86.0 88.5 84.0 69.9 68.1 69.5 70.2 70.8 71.5 73.2 74.7 75.1 74.7 17 Utilities 94.9 82.0 86.7 83.8 77.7 80.8 83.5 85.0 84.8 83.3 83.0 84.5 83.0 82.2 18 Manufacturing 87.9 69.0 87.5 75.5 70.6 74.9 76.4 77.3 78.4 78.9 78.8 78.9 80.0 81.0 19 Primary processing 93.7 68.2 91.4 72.6 70.8 75.7 77.1 78.1 79.7 80.4 80.0 79.2 80.6 81.8 20 Advanced processing .... 85.5 69.4 85.9 77.0 70.8 74.4 76.0 76.9 77.8 77.9 78.0 78.6 79.8 80.7 71 Materials 92.6 69.3 88.9 74.2 70.1 74.4 76.5 77.4 78.6 79.5 79.6 79.6 80.5 81.6 V. Durable goods 91.4 63.5 88.4 68.4 64.2 70.0 72.1 73.6 75.2 76.1 76.5 76.9 78.3 79.8 23 Metal materials 97.8 68.0 95.4 59.4 56.1 61.2 62.3 64.0 65.5 68.0 66.8 66.6 68.1 70.1 24 Nondurable goods 94.4 67.4 91.7 77.5 75.3 79.6 80.7 81.1 82.9 84.1 83.8 82.2 82.6 83.4 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 74.1 79.2 80.4 80.5 82.6 84.1 83.7 81.9 82.4 83.1 76 Paper 99.4 72.4 97.9 89.8 90.8 93.1 96.7 96.9 99.0 99.4 101.3 99.4 99.5 n.a. 27 Chemical 95.5 64.2 91.3 70.7 69.9 75.3 75.9 75.5 77.8 79.7 79.0 77.1 77.7 n.a. 28 Energy materials 94.5 84.4 88.7 84.4 79.2 78.8 82.6 82.8 81.6 81.4 81.8 83.3 83.4 83.9 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1983 1984 CCaatteeggoorryy 11998811 11998822'' 11998833 July Aug. Sept. Oct. Nov. Dec/ Jan/ Feb. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 172,272 174,450 176,414 176,498 176,648 176,811 176,990 177,151 177,325 177,733 177,882 2 Labor force (including Armed Forces)1 110,812 112,383 113,749 114,017 114,325 114,438 114,077 114,235 114,340 114,415 114,896 3 Civilian labor force 108,670 110,204 111,550 111,825 112,117 112,229 111,866 112,035 112,136 112,215 112,693 4 Nonagricultural industries2 97,030 96,125 97,450 97,726 98,035 98,568 98,730 99,349 99,585 99,918 100,496 5 Agriculture 3,368 3,401 3,383 3,499 3,449 3,308 3,240 3,257 3,356 3,271 3,395 6 Number 8,273 10,678 10,717 10,600 10,633 10,353 9,896 9,429 9,195 9,026 8,801 7 Rate (percent of civilian labor force) ... 7.6 9.7 9.6 9.5 9.5 9.2' 8.8 8.4 8.2 8.0 7.8 8 Not in labor force 61,460 62,067 62,665 62,481 62,323 62,373 62,913 62,916 62,985 63,318 62,986 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 91,156 89,596 89,986 90,152 89,748 90,851 91,084 91,355 91,599 91,863 92,249 10 Manufacturing 20,170 18,853 18,678 18,733 18,793 18,871 19,064 19,172 19,280 19,385 19,495 11 Mining 1,132 1,143 1,021 1,017 1,023 1,026 1,044 1,045 1,047 1,050 1,053 12 Contract construction 4,176 3,911 3,949 3,974 4,014 4,038 4,060 4,094 4,088 4,176 4,212 13 Transportation and public utilities 5,157 5,081 4,943 4,984 4,341 5,031 5,019 5,019 5,015 5,042 5,043 14 20,551 20,401 20,508 20,529 20,580 20,612 20,666 20,718 20,781 20,846 20,601 15 Finance 5,301 5,340 5,456 5,465 5,488 5,499 5,503 5,515 5,525 5,553 5,563 16 Service 20,547 19,064 19,685 19,770 19,835 19,913 19,956 20,016 20,093 20,096 20,242 17 Government 16,024 15,803 15,747 15,680 15,674 15,861 15,775 15,776 15,770 15,715 15,727 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 • March 1983 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 pro- 1983 Grouping por- avg. tion Feb. Mar. Apr. May June July Aug. Sept Oct. Nov/ Dec. Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.6 138.1 140.0 142.6 144.4 146.4 149.7 151.8 153.8 155.0 155.3 156.1 158.0 159.9 2 Products 60.71 149.2 140.3 141.6 144.5 146.2 148.1 150.9 153.2 154.9 155.6 155.8 157.0 159.0 160.7 3 Final products 47.82 147.1 138.9 139.9 142.8 144.5 146.4 149.0 150.7 152.1 152.7 153.2 154.8 156.8 158.2 4 Consumer goods 27.68 151.8 143.4 144.3 147.7 150.4 152.4 154.8 156.3 157.4 156.9 156.1 157.3 159.6 161.1 5 Equipment 20.14 140.7 132.7 133.8 136.2 136.5 138.2 141.0 143.1 144.9 147.0 149.1 151.3 153.0 154.2 6 Intermediate products 12.89 156.6 145.3 147.8 150.8 152.2 154.5 158.1 162.2 165.3 166.5 165.5 165.3 167.1 169.7 7 Materials 39.29 145.3 134.9 137.6 139.7 141.7 143.7 147.8 149.7 152.3 154.0 154.5 154.6 156.4 158.8 Consumer goods 8 Durable consumer goods 7.89 147.5 134.4 136.3 140.5 145.5 149.2 152.9 154.2 157.4 156.7 155.9 158.4 163.7 164.9 9 Automotive products 2.83 158.2 144.3 142.6 144.9 152.2 160.0 167.0 168.1 172.9 171.3 171.5 178.4 184.1 182.5 10 Autos and utility vehicles 2.03 134.0 120.8 116.4 117.8 124.9 135.4 145.4 147.0 153.1 149.2 149.2 157.8 163.4 160.6 11 Autos 1.90 117.4 107.3 99.9 102.7 107.4 118.3 129.8 132.0 135.0 129.6 129.4 137.4 140.7 139.5 12 Auto parts and allied goods .80 219.4 203.9 209.3 213.6 221.5 222.6 221.9 221.8 223.1 227.4 228.2 230.7 236.7 238.2 13 Home goods 5.06 141.5 128.8 132.8 138.1 141.8 143.2 144.9 146.4 148.7 148.4 147.2 147.2 152.2 155.1 14 Appliances, A/C, and TV 1.40 116.3 105.8 105.0 106.1 112.8 114.4 116.2 121.2 125.2 129.2 127.0 125.4 137.5 143.2 15 Appliances and TV 1.33 120.1 108.8 108.5 109.7 116.1 118.4 119.7 125.0 129.7 133.3 131.3 129.2 141.2 16 Carpeting and furniture 1.07 178.0 156.7 168.3 180.5 181.9 185.6 187.3 187.5 186.3 185.5 182.7 184.0 186.8 17 Miscellaneous home goods 2.59 140.0 129.7 133.3 137.9 140.9 141.3 143.0 143.2 145.9 143.6 143.4 143.9 145.9 147.5 18 Nondurable consumer goods 19.79 153.5 147.0 147.5 150.5 152.3 153.6 155.6 157.1 157.5 157.1 156.1 156.9 158.0 159.6 19 Clothing 4.29 20 Consumer staples 15.50 163.8 157.4 158.1 161.1 162.8 164.3 166.1 168.0 168.0 167.2 165.4 165.5 166.6 168.1 21 Consumer foods and tobacco .. 8.33 149.5 148.4 150.9 153.2 155.9 156.6 156.3 154.9 156.0 154.5 155.2 22 Nonfood staples 7.17 175.7 166.5 169.4 172.9 174.0 174.1 177.2 181.6 183.2 180.3 178.1 177.4 178.2 179.7 23 Consumer chemical products 2.63 231.4 220.9 225.6 225.5 227.8 229.0 233.8 239.7 241.5 238.7 232.4 231.5 233.9 24 Consumer paper products ... 1.92 133.2 127.9 128.1 129.2 128.6 130.1 132.6 137.4 138.2 137.6 136.6 137.2 138.7 25 Consumer energy products .. 2.62 150.9 140.2 143.3 152.2 153.4 151.2 153.2 155.7 157.7 153.0 154.1 152.5 151.2 26 Residential utilities 1.45 162.9 166.1 175.5 174.3 170.5 173.2 179.9 182.8 174.5 175.8 177.9 Equipment 27 Business 12.63 153.1 142.7 143.7 146.9 147.7 150.2 153.3 156.6 158.8 161.3 164.1 166.6 168.1 169.2 28 Industrial 6.77 120.4 113.7 113.1 113.5 114.5 116.3 119.9 124.3 125.6 126.6 128.6 130.6 131.7 131.8 29 Building and mining 1.44 159.3 153.6 145.3 141.8 146.2 148.7 154.4 159.2 160.8 166.9 175.8 185.3 184.6 178.0 30 Manufacturing 3.85 107.0 97.9 99.7 101.7 102.5 105.0 108.9 113.3 115.0 114.6 114.3 114.7 116.2 118.0 31 Power 1.47 117.1 116.0 116.2 116.6 115.0 114.1 114.6 119.0 118.8 118.5 119.4 118.4 120.5 122.8 32 Commercial transit, farm 5.86 191.0 176.1 179.2 185.4 186.1 189.5 191.9 194.0 196.7 201.3 205.1 208.1 210.1 212.3 33 Commercial 3.26 272.7 251.2 255.7 264.3 265.0 270.9 276.0 277.4 281.2 288.1 292.5 2%.7 297.8 300.3 34 Transit 1.93 95.0 88.2 90.1 92.0 92.6 93.2 92.0 95.9 97.6 100.0 103.2 105.3 109.7 111.6 35 Farm .67 69.6 63.4 63.4 70.2 71.3 70.4 70.8 70.8 71.0 70.9 73.5 73.2 72.7 36 Defense and space 7.51 119.9 116.1 117.0 118.2 117.6 118.0 120.4 120.2 121.8 122.9 124.0 125.7 127.5 129.2 Intermediate products 37 Construction supplies 6.42 142.4 129.7 133.1 136.4 138.4 142.1 145.8 149.0 151.1 152.3 151.6 151.4 154.8 157.8 38 Business supplies 6.47 170.7 160.9 162.3 165.2 166.0 166.8 170.4 175.3 179.3 180.6 179.4 179.1 179.4 39 Commercial energy products 1.14 184.8 178.6 180.3 183.3 183.1 181.4 185.2 186.9 190.2 187.0 187.6 186.9 186.5 Materials 40 Durable goods materials 20.35 138.6 125.3 128.7 132.4 134.7 137.0 141.1 144.2 147.2 149.4 150.3 151.1 153.9 157.0 41 Durable consumer parts 4.58 113.5 101.6 104.0 106.5 108.5 109.5 115.6 119.9 123.1 124.9 125.0 127.5 128.8 131.5 42 Equipment parts 5.44 176.4 158.8 162.5 167.2 170.6 175.8 180.8 183.6 186.0 188.3 192.5 193.4 198.1 202.1 43 Durable materials n.e.c 10.34 129.9 118.2 121.9 125.4 127.5 128.7 131.5 134.2 137.4 139.8 139.3 139.3 141.7 144.5 44 Basic metal materials 5.57 90.3 82.4 86.0 87.8 89.3 89.6 90.8 93.1 94.5 98.0 97.1 96.6 98.5 45 Nondurable goods materials 10.47 175.0 164.0 167.5 168.7 172.1 174.3 177.0 178.0 183.4 185.3 184.8 181.7 182.8 185.0 46 Textile, paper, and chemical materials 7.62 183.2 170.0 174.3 175.9 180.2 182.8 186.1 186.4 192.0 195.4 194.7 191.2 192.6 194.5 47 Textile materials 1.85 116.1 106.4 110.6 110.6 114.6 116.0 119.0 121.5 123.1 124.0 121.9 121.2 121.3 48 Paper materials 1.62 158.6 150.1 149.5 150.8 154.4 155.0 161.1 161.8 165.4 166.3 169.8 167.0 167.3 49 Chemical materials 4.15 222.7 206.2 212.5 214.9 219.6 223.6 225.9 225.1 233.1 238.7 237.0 231.9 234.3 50 Containers, nondurable 1.70 168.1 159.6 163.8 163.2 164.3 166.1 166.5 170.6 179.1 175.9 176.6 174.0 173.3 51 Nondurable materials n.e.c 1.14 130.5 130.5 127.7 129.1 129.7 129.9 131.3 133.0 132.6 131.9 130.6 129.7 132.1 52 Energy materials 8.48 124.8 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 126.3 127.1 129.5 129.8 130.8 53 Primary energy 4.65 114.6 115.4 114.4 113.9 113.8 112.6 115.4 113.9 112.8 114.1 115.5 117.6 118.3 54 Converted fuel materials 3.82 137.1 129.6 131.1 131.0 129.9 132.9 142.7 145.2 142.8 141.2 141.1 143.9 143.8 Supplementary groups 55 Home goods and clothing 9.35 129.9 119.9 122.0 126.3 129.2 130.2 132.3 133.3 135.2 135.5 135.9 137.4 140.6 143.1 56 Energy, total 12.23 135.9 131.0 131.9 133.9 133.8 133.6 138.5 139.4 139.0 137.7 138.5 139.7 139.7 140.7 57 Products 3.76 161.2 151.9 154.5 161.7 162.4 160.4 162.9 165.2 167.5 163.3 164.3 162.9 161.9 58 Materials 8.48 124.8 121.8 121.9 121.6 121.1 121.8 127.7 128.0 126.4 126.3 127.1 129.5 129.8 130.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1983 1984 Grouping c S o I d C e p p o ro r- - a 1 v 98 g 3 . tion Feb/ Mar. Apr. May June July Aug. Sept. Oct. Nov/ Dec. Jan.P Feb/ Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 142.8 137.5 137.7 138.9 139.7 139.6 143.8 146.0 146.5 145.8 147.2 150.2 149.3 148.3 2 Mining 6.36 116.6 115.6 112.6 111.6 112.8 112.6 115.0 116.1 117.1 118.3 121.1 123.7 124.4 123.7 3 Utilities 5.69 172.1 162.0 165.8 169.3 169.7 169.8 176.0 179.3 179.3 176.5 176.3 179.9 177.1 175.8 4 Electric 3.88 195.8 183.0 188.2 192.7 192.9 192.0 200.9 205.4 204.5 200.7 200.2 205.0 200.7 198.8 5 Manufacturing 87.95 148.3 138.2 140.4 143.1 145.1 147.4 150.6 152.8 155.1 156.2 156.4 156.9 159.2 161.5 6 Nondurable 35.97 168.1 159.0 160.7 163.3 165.4 167.8 170.6 172.9 174.6 175.6 174.8 174.4 175.9 177.7 7 Durable 51.98 134.5 123.9 126.3 129.1 131.0 133.2 136.8 138.8 141.6 142.8 143.6 144.8 147.7 150.3 Mining 8 Metal 10 .51 80.9 75.1 75.2 79.8 84.4 82.9 82.5 80.9 78.7 81.0 84.6 82.9 85.2 9 Coal 11.12 .69 136.3 136.5 127.3 125.3 125.6 124.6 139.9 141.2 140.5 142.7 144.8 145.2 151.5 163.1 10 Oil and gas extraction 13 4.40 116.6 117.0 114.4 112.2 112.5 112.6 113.9 114.7 116.3 117.3 119.8 123.3 123.0 119.4 11 Stone and earth minerals 14 .75 122.8 115.7 114.0 117.7 122.5 121.7 121.2 125.0 . 126.5 127.4 132.2 133.9 134.9 Nondurable manufactures 12 Foods 20 8.75 156.4 153.0 152.0 153.7 155.6 157.7 159.9 159.3 158.2 157.6 157.1 157.7 13 Tobacco products 21 .67 112.1 108.5 113.4 114.8 112.9 120.0 112.9 117.1 112.7 109.1 109.5 109.3 14 Textile mill products 22 2.68 140.8 130.7 131.9 136.6 139.6 141.8 146.7 147.4 148.7 148.7 145.8 145.4 145.7 15 Apparel products 23 3 31 16 Paper and products 26 3.21 164.3 155.6 156.3 157.0 161.5 163.0 165.1 168.6 170.4 171.5 172.1 170.9 172.3 172.6 17 Printing and publishing 27 4.72 152.7 144.0 145.9 145.7 145.2 147.4 152.0 157.8 161.7 162.7 162.0 163.3 164.9 166.5 18 Chemicals and products 28 7.74 215.1 202.3 205.7 208.5 211.0 214.7 218.3 220.3 224.1 228.4 225.6 222.2 224.0 19 Petroleum products 29 1.79 120.5 111.7 114.8 120.6 123.8 123.0 124.3 123.2 125.1 123.6 125.4 116.4 118.4 125.5 20 Rubber and plastic products 30 2.24 291.8 264.0 272.0 283.0 288.0 293.8 296.1 306.9 310.9 310.8 309.1 312.7 314.4 21 Leather and products 31 .86 61.8 61.7 59.4 58.7 59.6 60.1 62.3 64.4 64.2 64.0 63.2 64.9 60.7 Durable manufactures 22 Ordnance, private and government 19.91 3.64 95.4 93.3 91.9 93.2 92.6 93.3 95.2 96.8 98.0 98.8 99.3 99.8 100.0 100.7 23 Lumber and products 24 1.64 137.2 130.2 128.7 132.1 135.8 137.4 141.3 141.6 142.3 141.7 141.0 143.3 144.1 24 Furniture and fixtures 25 1.37 170.4 154.0 161.0 167.7 169.6 173.1 175.2 179.0 180.7 181.0 177.5 177.4 178.9 25 Clay, glass, stone products 32 2.74 143.4 131.8 135.6 138.3 139.2 141.7 145.8 147.9 151.7 151.9 152.7 154.2 156.8 26 Primary metals 33 6.57 85.4 77.9 81.2 83.1 84.9 84.8 85.5 87.5 90.6 95.3 92.2 90.2 94.6 98.0 27 Iron and steel 331.2 4.21 71.5 64.3 66.9 68.5 69.5 69.7 71.8 75.1 78.2 84.3 79.2 74.1 82.9 28 Fabricated metal products 34 5.93 120.2 110.3 113.9 115.3 115.5 118.5 122.7 126.0 127.4 26.9 128.5 129.2 131.3 133.3 29 Nonelectrical machinery 35 9.15 150.5 136.2 138.6 143.1 146.1 149.5 154.2 157.3 158.3 159.2 161.8 163.7 165.8 168.5 30 Electrical machinery 36 8.05 185.6 168.9 173.8 177.2 180.1 182.4 188.3 189.2 195.8 198.4 200.1 201.4 206.8 211.0 31 Transportation equipment 37 9.27 117.8 109.6 110.1 111.4 113.8 116.6 119.7 121.1 124.7 125.5 127.3 130.6 133.7 135.6 32 Motor vehicles and parts 371 4.50 137.1 123.0 123.2 125.5 130.4 136.2 142.3 144.3 150.9 150.9 152.9 158.6 163.8 164.9 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 99.6 97.0 97.7 98.1 98.1 98.1 98.5 99.2 100.0 101.6 103.2 104.3 105.3 107.9 34 Instruments 38 2.11 158.7 153.4 154.0 155.1 156.0 156.1 159.3 161.6 163.6 163.0 163.0 164.6 167.0 168.9 35 Miscellaneous manufactures 39 1.51 146.2 133.9 136.9 145.0 149.0 151.0 153.7 153.1 151.7 149.1 148.9 149.3 151.3 153.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 612.5 578.4 584.1 592.6 601.8 610.5 620.5 626.6 637.0 637.8 638.4 644.0 653.7 659.5 37 Final 390.9 472.5 447.3 451.3 457.7 465.6 471.8 478.2 481.8 489.9 490.7 490.8 496.5 503.2 508.4 38 Consumer goods. 277.5 328.6 312.0 313.8 318.8 325.6 330.4 333.7 336.7 341.6 340.2 338.3 340.8 345.2 348.3 39 Equipment 113.4 143.9 135.3 137.5 138.9 140.0 141.4 144.5 145.1 148.4 150.5 152.5 155.7 158.0 160.1 40 Intermediate 116.6 140.0 131.1 132.8 134.9 136.2 138.7 142.3 144.8 147.1 147.1 147.6 147.5 150.5 151.1 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • March 1983 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1983 1984 IItteemm 11998811 11998822 11998833'' Apr. May June July Aug. Sept. Oct. Nov/ Dec/ Jan. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 986 1,001 1,590 1,536 1,635 1,761 1,782 1,652 1,506 1,630 1,642 1,549 1,772 2 1-family 564 546 891 841 940 1,013 920 874 837 880 911 898 976 3 2-or-more-family 421 454 699 695 695 748 862 778 669 750 731 651 796 4 Started 1,084 1,062 1,701 1,549' 1,779' 1,743' 1,793' 1,873' 1,679' 1,672' 1,730 1,666 1,915 5 1-family 705 663 1,067 1,03c 1,150' 1,124' 1,048' 1,124' 1,038' 1,017' 1,074 1,011 1,241 6 2-or-more-family 379 400 634 519' 629' 619' 745' 749' 641' 655' 656 655 674 7 Under construction, end of period1 682 720 1,012 859 900 933 963 977 988 987' 1,006 1,027 8 1-family 382 400 529 489 518 532 537 542 542 536' 540 546 9 2-or-more-family 301 320 482 370 382 400 425 435 446 45(K 466 480 10 Completed 1,266 1,006 1,385 1,164 1,353 1,386 1,432 1,729 1,476 1,602' 1,418 1,415 n a. 11 1-family 818 631 921 803 851 959 1,000 1,050 966 1,043' 986 953 12 2-or-more-family 447 374 463 361 502 427 432 679 510 559' 432 462 13 Mobile homes shipped 241 239 295 284' 289' 299' 296' 307' 305' 308' 313 310 Merchant builder activity in 1-family units 14 Number sold 436 413 622 634' 654' 655' 606' 558' 597' 624 640 748 688 15 Number for sale, end of period1 278 255 307 266 273 283' 289' 296 299' 301 307 303 304 Price (thousands of dollars)2 Median 16 Units sold 68.8 69.3 75.6 74.7 74.5 75.8 75.2 76.8 81.0 75.9' 76.5 76.5 75.3 Average 17 Units sold 83.1 83.8 90.2 87.6 88.8 90.9 89.2 91.3 97.8 89.5' 91.7 94.9 90.4 EXISTING UNITS (1-family) 18 Number sold 2,418 1,991 2,719 2,680' 2,840' 2,820' 2,780' 2,760' 2,770' 2,720' 2,700 2,850 2,990 Price of units sold (thousands of dollars)2 19 Median 66.1 67.7 69.8 68.8 69.2 71.4 71.8 71.5 69.9 69.8 70.4 69.9 71.9 20 Average 78.0 80.4 82.5 81.3 81.7 84.7 84.2 84.7 82.8 83.0 83.4 82.9 85.7 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 239,418 232,048 265,089 247,360 254,763 264,321 274,205 281,997 285,384 271,650 275,384 277,797 281,769 22 Private 186,069 180,979 214,802 199,462 206,029 214,729 222,759 228,529 232,561 222,968 225,286 228,377 232,455 23 Residential 86,567 74,809 112,867 101,961 107,494 113,524 122,297 127,136 129,142 121,688 119,143 119,317 122,602 24 Nonresidential, total 99,502 106,170 101,935 97,501 98,535 101,205 100,462 101,393 103,419 101,280 106,143 109,060 109,853 Buildings 25 Industrial 17,031 17,346 13,143 13,223 13,047 13,136 12,227 14,227 13,166 10,532 12,280 1122,,992211 1133,,225577 26 Commercial 34.243 37,281 36,267 33,619 33,291 35,898 35,871 36,277 36,901 36,118 38,081 38,955 41,705 27 Other 9,543 10,507 11,705 10,770 11,237 10,974 11,250 12,038 12,564 12,279 12,001 12,121 13,343 28 Public utilities and other 38,685 41,036 40,820 39,889 40,960 41,197 41,114 38,851 40,788 42,351 43,781 45,063 41,548 29 Public 53,346 51,068 50,287 47,897 48,734 49,592 51,446 53,469 52,823 48,682 50,098 49,420 49,313 30 Military 1,966 2,205 2,470 2,784 2,255 1,894 2,655 2,258 2,705 2,515 2,619 2,687 2,701 31 Highway 13,599 13,521 14,178 12,900 13,044 12,925 14,091 15,906 15,896 14,644 14,360 14,780 13,605 32 Conservation and development 5,300 5,029 4,825 5,023 4,548 4,853 5,608 5,210 5,048 4,258 3,905 4,896 4,258 33 Other 32,481 30,313 28,814 27,190 28,887 29,920 29,092 30,095 29,174 27,265 29,214 27,057 28,749 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing 3. Value of new construction data in recent periods may not be strictly Institute and seasonally adjusted by the Census Bureau, and (b) sales and prices of comparable with data in prior periods because of changes by the Bureau of the existing units, which are published by the National Association of Realtors. All Census in its estimating techniques. For a description of these changes see back and current figures are available from originating agency. Permit authoriza- Construction Reports (C-30-76-5), issued by the Bureau in July 1976. tions are those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A49 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o an n g th e s f e ro ar m li e 1 r 2 Change ( a f t r o a m nn u 3 a m l o ra n t t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm JJJaaannn... 1983 1983 1984 111999888444 11998833 11998844 (((111999666777 JJaann.. JJaann.. === 111000000)))111 Mar/ June' Sept/ Dec/ Sept/ Oct/ Nov/ Dec/ Jan. CONSUMER PRICES2 1 AU items 3.8 4.1 1.2 5.4 4.5 4.0 .4 .4 .4 .2 .6 305.2 ? 2.5 3.9 3.2 1.7 1.1 4.3 .2 .4 .2 .4 1.6 299.4 3 Energy items -0.5 0.5 -23.3 19.1 3.4 -1.7 .1 -.2 .1 -.3 -.4 416.7 4 All items less food and energy 4.7 4.8 4.2 4.2 5.9 4.9 .5 .4 .5 .3 .5 294.6 5 Commodities 6.0 4.7 5.7 3.2 6.8 4.6 .5 .4 .4 .3 .2 248.3 6 Services 3.5 4.9 4.3 4.8 5.2 5.3 .4 .5 .5 .3 .7 348.1 PRODUCER PRICES 7 Finished goods 2.2 1.9 -3.2 2.6 2.0 1.0 .1 .3 .2 .1 .6 289.4 8 Consumer foods 0.8 5.3 2.3 -.9 2.5 5.4 .7 1.3 -.6 .7 2.7 272.2 9 Consumer energy -3.7 -6.9 -32.3 12.9 -1.3 -9.5 .1 -.4 -1.1 -1.0 -1.2 755.4 10 Other consumer goods 3.9 2.6 1.0 2.2 2.7 1.2 -.1 -.2 .3 .2 .2 243.7 11 Capital equipment 3.3 2.2 2.1 1.7 2.1 2.1 -.1 .4 -.1 .2 .1 291.5 17 Intermediate materials3 -0.6 2.0 -3.4 2.8 4.0 2.7 .4 .5 .1 .1 .0 320.9 13 Excluding energy 0.4 3.0 1.5 2.8 3.6 3.3 .3 .2 .3 .3 .2 299.3 Crude materials 14 Foods -1.2 10.3 13.3 -5.8 15.6 12.4 1.7 .9 .5 1.5 22..22 264.2 15 Energy 1.3 -3.1 -9.2 -5.1 -1.7 -2.1 .3 -1.0 .2 .2 .4 786.6 16 Other -7.8 14.3 -1.5 49.1 16.6 3.4 1.1 -.8 1.0 .6 -3.6 263.8 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 • March 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 11998811 11998822 II998833rr Q4 Q1 Q2 Q3 Q4' GROSS NATIONAL PRODUCT ! Tsial 2,954.1 3,073.0 3,310.8 3,109.6 3,171.5 3,272.0 3,362.2 3,437.3 By source 2 Personal consumption expenditures 1,857.2 1,991.9 2,157.0 2,046.9 2,073.0 2,147.0 2,181.1 2,227.0 3 Durable goods 236.1 244.5 279.1 252.1 258.5 277.7 282.8 297.4 4 Nondurable goods 733.9 761.0 803.8 773.0 777.1 799.6 814.8 823.6 5 Services 887.1 986.4 1,074.2 1,021.8 1,037.4 1,069.7 1,083.5 1,106.0 6 Gross private domestic investment 474.9 414.5 470.9 377.4 404.1 450.1 501.1 528.2 7 Fixed investment 456.5 439.1 479.6 433.8 443.5 464.6 492.5 517.7 8 Nonresidential 352.2 348.3 348.9 337.0 332.1 336.3 351.0 376.2 9 Structures 133.4 141.9 131.5 138.6 132.9 127.4 130.9 134.8 10 Producers' durable equipment 218.8 206.4 217.4 198.4 199.3 208.8 220.2 241.4 11 Residential structures 104.3 90.8 130.7 96.8 111.3 128.4 141.5 141.5 12 Nonfarm 99.8 86.0 125.6 91.2 106.7 123.3 136.3 136.3 13 Change in business inventories 18.4 -24.5 -8.7 -56.4 -39.4 -14.5 8.5 10.5 14 Nonfarm 10.9 -23.1 -3.4 -53.7 -39.0 -10.3 18.4 17.4 15 Net exports of goods and services 26.3 17.4 -7.1 5.6 17.0 -8.5 -18.3 -18.7 16 Iixports 368.8 347.6 336.8 321.6 326.9 327.1 341.1 352.3 17 Imports 342.5 330.2 344.0 316.1 309.9 335.6 359.4 371.0 18 Government purchases of goods and services 595.7 649.2 690.0 679.7 677.4 683.4 698.3 700.9 19 Federal 229.2 258.7 275.2 279.2 273.5 273.7 278.1 275.6 20 State and local 366.5 390.5 414.8 400.5 404.0 409.7 420.2 425.3 By major type of product 21 Final sales, total 2,935.6 3,097.5 3,319.5 3,165.9 3,210.9 3,286.6 3,353.7 3,426.9 22 Goods 1,291.8 1,280.8 1,364.1 1,264.8 1,292.2 1,346.8 1,388.9 1,428.3 23 Durable 528.0 500.8 547.3 474.0 482.7 536.8 568.9 600.9 24 Nondurable 763.9 780.1 816.7 790.8 809.5 810.0 820.0 827.4 25 Services 1,374.2 1,511.2 1,637.2 1,560.5 1,588.4 1,623.4 1,651.0 1,685.8 26 Structures 288.0 281.0 309.6 284.3 290.9 301.9 322.3 323.2 27 Change in business inventories 18.4 -24.5 -8.7 -56.4 -39.4 -14.5 8.5 10.5 28 Durable goods 3.6 -15.5 -5.1 -45.0 -38.2 -8.9 13.1 13.6 29 Nondurable goods 14.8 -9.1 -3.6 -11.4 -1.2 -5.7 -4.5 -3.1 30 MEMO: Total GNP in 1972 dollars 1,513.8 1,485.4 1,535.1 1,480.7 1,490.1 1,525.1 1,553.4 1,571.9 NATIONAL INCOME 31 Total 2,373.0 2,450.4 2,648.4 2,474.0 2,528.5 2,612.8 2,686.9 n.a. 32 Compensation of employees 1,769.2 1,865.7 1,990.2 1,889.0 1,923.7 1,968.7 2,011.8 2,056.3 33 Wages and salaries 1,493.2 1,568.1 1,664.1 1,586.0 1,610.6 1,647.1 1,681.5 1,717.0 34 Government and government enterprises 284.4 306.0 325.7 314.5 319.2 323.3 328.4 332.1 35 Other 1,208.8 1,262.1 1,338.3 1,271.5 1,291.5 1,323.8 1,353.1 1,384.9 36 Supplement to wages and salaries 276.0 297.6 326.1 302.9 313.1 321.6 330.3 339.3 37 Employer contributions for social insurance 132.5 140.9 152.7 142.5 148.8 151.5 153.9 156.6 38 Other labor income 143.5 156.6 173.4 160.4 164.3 170.1 176.4 182.7 39 Proprietors' income1 120.2 109.0 128.6 116.2 120.6 127.2 126.7 139.9 40 Business and professional1 89.7 87.4 107.7 90.2 98.4 106.2 111.2 114.8 41 Farm1 30.5 21.5 20.9 26.0 22.2 21.0 15.5 25.1 42 Rental income of persons2 41.4 49.9 54.8 52.3 54.1 54.8 53.9 56.2 43 Corporate profits1 192.3 164.8 227.3 161.9 181.8 218.2 248.4 44 Profits before tax3 227.0 174.2 205.9 167.5 169.7 203.3 229.1 45 inventory valuation adjustment -23.6 -8.4 -9.4 -10.3 -1.7 -10.6 -18.3 -7.1 46 Capital consumption adjustment -11.0 -1.1 30.9 4.7 13.9 25.6 37.6 46.5 47 Net interest 249.9 261.1 247.5 254.7 248.3 243.8 246.1 251.9 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 11998811 11998822 11998833'' Q4 Ql Q2 Q3 Q4r PERSONAL INCOME AND SAVING 1 Total personal income 2,435.0 2,578.6 2,742.1 2,632.0 2,657.7 2,713.6 2,761.9 2,835.3 2 Wage and salary disbursements 1,493.2 1,568.1 1,664.5 1,586.0 1,610.7 1,648.4 1,681.9 1,717.0 3 Commodity-producing industries 509.5 509.2 529.7 499.5 508.6 522.2 537.8 550.0 4 Manufacturing 385.3 383.8 402.8 377.4 385.4 397.4 409.2 419.0 5 Distributive industries 361.6 378.8 397.2 383.5 386.4 394.3 398.9 409.1 6 Service industries 337.7 374.1 411.5 388.5 396.4 407.3 416.4 425.9 7 Government and government enterprises 284.4 306.0 326.2 314.5 319.2 324.6 328.8 332.1 8 Other labor income 143.5 156.6 173.4 160.4 164.3 170.1 176.4 182.7 9 Proprietors' income1 120.2 109.0 128.6 116.2 120.6 127.2 126.7 139.9 10 Business and professional1 89.7 87.4 107.7 90.2 98.4 106.2 111.2 114.8 11 Farm1 30.5 21.5 20.9 26.0 22.2 21.0 15.5 25.1 12 Rental income of persons2 41.4 49.9 54.8 52.3 54.1 54.8 53.9 56.2 13 Dividends 62.8 66.4 70.5 67.9 68.8 69.3 70.9 72.9 14 Personal interest income 341.3 366.2 366.3 363.1 357.2 357.1 369.9 381.0 15 Transfer payments 337.2 374.6 403.6 399.0 398.5 405.3 402.6 408.1 16s Old-age survivors, disability, and health insurance benefits.... 182.0 204.5 222.8 216.5 217.4 221.1 223.8 228.8 17 LESS: Personal contributions for social insurance 104.6 112.0 119.5 112.9 116.5 118.6 120.5 122.5 18 EQUALS: Personal income 2,435.0 2,578.6 2,742.1 2,632.0 2,657.7 2,713.6 2,761.9 2,835.3 19 LESS: Personal tax and nontax payments 387.4 402.1 406.5 404.1 401.8 412.6 400.1 411.4 20 EQUALS: Disposable personal income 2,047.6 2,176.5 2,335.6 2,227.8 2,255.9 2,301.0 2,361.7 2,424.0 21 LESS: Personal outlays 1,912.4 2,051.1 2,220.9 2,107.0 2,134.2 2,209.5 2,245.9 2,294.0 22 EQUALS: Personal saving 135.3 125.4 114.7 120.8 121.7 91.5 115.8 129.9 MEMO Per capita (1972 dollars) 23 Gross national product 6,584.1 6,399.3 6,551.9 66,,335555..22 66,,338811..55 66,,551188..00 66,,662222..55 66,,668855..00 24 Personal consumption expenditures 4,161.5 4,179.8 4,314.6 4,204.5 4,225.7 4,319.1 4,331.4 4,381.2 25 Disposable personal income 4,587.0 4,567.0 4,671.0 4,576.0 4,599.0 4,629.0 4,690.0 4,769.0 26 Saving rate (percent) 6.6 5.8 4.9 5.4 5.4 4.0 4.9 5.4 GROSS SAVING 27 Gross saving 483.8 405.8 438.5 351.3 398.5 420.6 455.4 n.a. 28 Gross private saving 509.6 521.6 570.2 526.6 541.5 535.0 587.2 n.a. 29 Personal saving 135.3 125.4 114.7 120.8 121.7 91.5 115.8 129.9 30 Undistributed corporate profits1 44.8 37.0 78.3 37.5 48.9 70.1 89.7 n.a. 31 Corporate inventory valuation adjustment -23.6 -8.4 -9.4 -10.3 -1.7 -10.6 -18.3 -7.1 Capital consumption allowances 202.9 222.0 231.6 222277..77 222288..33 222299..88 223333..11 223355..00 33 Noncorporate 126.6 137.2 145.6 140.5 142.6 143.5 148.6 147.6 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -26.9 -115.8 -131.7 -175.3 --114422..99 -114.4 -131.8 n.a. 36 Federal -62.2 -147.1 -182.8 -208.2 -183.3 -166.1 -187.3 n.a. 37 State and local 35.3 31.3 51.1 32.9 40.4 51.7 55.5 n.a. 38 Capital grants received by the United States, net 1.1 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 478.9 406.2 438.6 355.5 397.4 417.1 457.9 481.9 40 Gross private domestic 474.9 414.5 470.9 377.4 404.1 450.1 501.1 528.2 41 Net foreign 4.0 -8.3 -32.3 -21.9 -6.7 -33.0 -43.2 -46.3 42 Statistical discrepancy -4.9 .5 .1 4.2 -1.2 -3.5 2.5 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 • March 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 Q3 p 1 Balance on current account 421 4,592 -11,211 -6,596 -6,621 -3,587 -9,655 -11,976 -8,143 -5,546 -3,395 -8,898 -13,996 3 Merchandise trade balance2 -25,544 -28,067 -36,389 -13,078 -11,354 -8,810 -14,661 -18,169 4 Merchandise exports 224,237 237,019 211,217 52,241 48,344 49,506 48,913 50,585 5 Merchandise imports -249,781 -265,086 -247,606 -65,319 -59,698 -58,316 -63,574 -68,754 6 Military transactions, net -2,286 -1,355 179 54 -26 516 117 -21 7 Investment income, net3 29,570 33,484 27,304 6,821 6,008 5,089 5,700 6,928 8 Other service transactions, net 5,738 7,462 5,729 1,349 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 1J03 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 0 00 0 0 0 35 Discrepancy 29,556 24,238 41,390 15,082 1144,,665577 8,833 -644 -82 -1,190 11,,004422 -212 792 -1,355 37 Statistical discrepancy in recorded data before seasonal adjustment 29,556 24,238 41,390 16,272 1133,,661155 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 1984 IItteemm 11998811 11998822 11998833 July Aug. Sept. Oct. Nov. Dec. Jan. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 233,677 212,193 200,486 16,486 16,582 17,257 17,033 17,063 17,298 18,326 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 261,305 243,952 258,048 21,828 22,714 22,451 24,333 23,115 22,976 26,586 3 Trade balance -27,628 -31,759 -57,562 -5,341 -6,132 -5,195 -7,300 -6,052 -5,678 -8,260 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 1984 TTyyppee 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Total 26,756 30,075 33,958 32,624 33,066 33,273 33,655 33,747 33,887 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,128 11,128 11,126 11,123 11,121 11,120 3 Special drawing rights2 3 2,610 4,095 5,250 5,543 5,628 5,641 5,735 5,025 5.050 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 9,296 9,399 9,554 9,883 11,312 11,422 5 Foreign currencies4'5 10,134 9,774 10,212 6,657 6,911 6,952 6,914 6,289 5,050 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 1984 AAsssseettss 11998800 11998811 11998822 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Deposits 411 505 328 248 297 339 360 190 251 246 Assets held in custody 2 U.S. Treasury securities1 102,417 104,680 112,544 113,476 113,498 116,327 116,398 117,670 117,076 119,499 3 Earmarked gold2 14,965 14,804 14,716 14,693 14,621 14,550 14,475 14,414 14,347 14,291 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 • March 1984 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 June July Aug. Sept. Oct.' Nov. Dec.P All foreign countries 1 Total, all currencies 401,135 462,847 469,432 465,866 455,850 452,596 460,261 458,894 463,467 476,158 2 Claims on United States 28,460 63,743 91,768 97,914' 96,963 99,484 101,356 102,497 109,511 114,889 3 Parent bank 20,202 43,267 61,629 65,920 67,731 67,137 65,561 69,655 72,608 81,004 4 Other 8,258 20,476 30,139 31,994' 29,232 32,347 35,795 32,842 36,903 33,885 5 Claims on foreigners - 354,960 378,954 358,258 349,809' 340,994 335,036 340,413 337,848 335,518 342,651 6 Other branches of parent bank 77,019 87,821 91,143 88,368' 84,872' 84,572' 89,304' 87,543 89,447 93,158 7 Banks 146,448 150,763 133,640 130,259' 123,536' 119,288' 120,177' 117,631 114,495 117,538 8 Public borrowers 28,033 28,197 24,090 25,370 25,876 25,147 24,982 25,061 24,256 24,450 9 Nonbank foreigners 103,460 112,173 109,385 105,812 106,710 106,029 105,950 107,613 107,320 107,505 10 Other assets 17,715 20,150 19,406 18,143 17,893 18,076 18,492 18,549 18,438 18,618 11 Total payable in U.S. dollars 291,798 350,735 361,712 357,499' 350,507 348,330 354,595 351,483 358,204 370,752 12 Claims on United States 27,191 62,142 90,048 95,637' 94,549 96,995 98,510 99,938 107,015 112,735 13 Parent bank 19,896 42,721 60,973 64,591 66,303 65,711 63,716 68,126 71,086 79,866 14 Other 7,295 19,421 29,075 31,046' 28,246 31,284 34,794 31,812 35,929 32,869 15 Claims on foreigners 255,391 276,937 259,646 251,249' 245,188 241,063 245,541 241,221 240,768 247,432 16 Other branches of parent bank 58,541 69,398 73,512 69,512' 67,163' 66,609' 71,273' 69,324 71,451 75,348 17 Banks 117,342 122,110 106,338 102,836' 97,194' 93,806' 95,113' 92,048 90,143 93,236 18 Public borrowers 23,491 22,877 18,374 18,681 19,108 18,804 18,455 18,644 17,752 17,907 19 Nonbank foreigners 56,017 62,552 61,422 60,220 61,723 61,844 60,700 61,205 61,422 60,941 20 Other assets 9,216 11,656 12,018 10,613 10,770 10,272 10,544 10,324 10,421 10,585 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 155,631 153,209 154,865 156,048 156,803 155,964 158,807 22 Claims on United States 7,509 11,823 27,354 26,279 26,012 29,722 28,947 30,853 32,352 34,405 23 Parent bank 5,275 7,885 23,017 21,384 20,849 22,169 20,816 25,507' 23,959 29,111 24 Other 2,234 3,938 4,337 4,895 5,163 7,553 8,131 5,346' 8,393 5,294 25 Claims on foreigners 131,142 138,888 127,734 123,835 121,757 119,672 121,518 120,660 118,275 119,398 26 Other branches of parent bank 34,760 41,367 37,000 35,787 35,632 35,555 36,382 36,556 35,642 36,565 27 Banks 58,741 56,315 50,767 48,328 46,643 44,303 45,451 43,888 42,683 43,362 28 Public borrowers 6,688 7,490 6,240 6,570 6,440 6,342 6,274 6,280 6,307 5,988 29 Nonbank foreigners 30,953 33,716 33,727 33,150 33,042 33,472 33,411 33,936 33,643 33,483 30 Other assets 6,066 6,518 5,979 5,517 5,440 5,471 5,583 5,290 5,337 5,004 31 Total payable in U.S. dollars 99,699 115,188 123,740 118,023 116,526 119,377 121,238 121,817 121,744 126,087 32 Claims on United States 7,116 11,246 26,761 25,536 25,180 28,905 27,837 30,095 31,671 33,728 33 Parent bank 5,229 7,721 22,756 21,017 20,434 21,720 20,036 25,084' 23,624 28,756 34 Other 1,887 3,525 4,005 4,519 4,746 7,185 7,801 5,011' 8,047 4,972 35 Claims on foreigners 89,723 99,850 92,228 88,587 87,450 86,868 89,530 88,253 86,614 89,035 36 Other branches of parent bank 28,268 35,439 31,648 30,025 30,122 30,053 31,409 31,414 30,371 31,838 37 Banks 42,073 40,703 36,717 34,417 33,159 31,718 33,237 31,796 31,158 32,198 38 Public borrowers 4,911 5,595 4,329 4,547 4,420 4,410 4,329 4,346 4,377 4,284 39 Nonbank foreigners 14,471 18,113 19,534 19,598 19,749 20,687 20,555 20,697 20,708 20,715 40 Other assets 2,860 4,092 4,751 3,900 3,896 3,604 3,871 3,469 3,459 3,324 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156 146,886 142,432 139,699 143,148 141,311 147,257 151,463 42 Claims on United States 17,751 46,546 59,403 66,575 66,032 63,923 66,547 66,253 71,363 74,689 43 Parent bank 12,631 31,643 34,653 40,591 42,946 40,308 40,152 40,105 44,414 47,703 44 Other 5,120 14,903 24,750 25,984' 23,086 23,615 26,395 26,148 26,949 26,986 45 Claims on foreigners 101,926 98,057 81,450 76,709' 72,683 72,021 72,826 71,268 71,995 72,827 46 Other branches of parent bank 13,342 12,951 18,720 16,674' 15,568' 15,354' 16,789' 15,817' 17,993 17,343 47 Banks 54,861 55,151 42,699 41,681' 37,381' 37,350' 36,609' 35,964' 35,353 36,764 48 Public borrowers 12,577 10,010 6,413 5,935 6,538 6,404 6,461 6,643' 5,890 6,084 49 Nonbank foreigners 21,146 19,945 13,618 12,419 13,196 12,913 12,967 12,844' 12,759 12,636 50 Other assets 4,160 4,505 4,303 3,602 3,717 3,755 3,775 3,790 3,899 3,947 51 Total payable in U.S. dollars 117,654 143,743 139,605 140,796 136,301 133,233 136,851 134,684' 140,841 144,969 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A55 3.14 Continued 1983 June July Aug. Sept. Oct. Nov. Dec.? All foreign countries 52 Total, all currencies 401,135 462,847 469,432 465,866 455,850 452,596 460,261 458,894 463,467 476,158 51 To United States 91,079 137,767 178,918 191,579 187,713 183,864 182,664' 185,599 184,257 187,247 54 Parent bank 39,286 56,344 75,561 84,576 81,752 77,556 78,027' 85,057 79,591 80,276 55 Other banks in United States 14,473 19,197 33,368 33,672 31,489' 29,880 30,982 27,075 26,237 29,141 56 Nonbanks 37,275 62,226 69,989 73,331 74,472' 76,428 73,655 73,467 78,429 77,830 57 To foreigners 295,411 305,630 270,678 256,102 249,823 250,563 259,449' 254,634 260,280 269,768 58 Other branches of parent bank 75,773 86,396 90,148 86,559' 83,911 82,871 88,055' 85,566 88,346 91,335 59 Banks 132,116 124,906 96,739 87,140' 84,649 85,433 86,55C 84,533 88,023 92,903 60 Official institutions 32,473 25,997 19,614 18,621 18,287 17,830 20,513 19,403 18,377 18,801 61 Nonbank foreigners 55,049 68,331 64,177 63,782 62,976 64,429 64,331 65,132 65,534 66,729 62 Other liabilities 14,690 19,450 19,836 18,185 18,314 18,169 18,148 18,661 18,930 19,143 63 Total payable in U.S. dollars 303,281 364,447 379,003 376,149 368,650 365,583 373,060 369,935 374,425 387,571 64 To United States 88,157 134,700 175,431 188,081 184,215 180,173 178,889' 181,692 180,260 183,520 65 Parent bank 37,528 54,492 73,235 82,379 79,496 75,244 75,742' 82,660 77,126 78,046 66 Other banks in United States 14,203 18,883 33,003 33,242 31,115' 29,334 30,415 26,548 25,763 28,623 67 Nonbanks 36,426 61,325 69,193 72,460 73,604' 75,595 72,732 72,484 77,371 76,851 68 To foreigners 206,883 217,602 192,348 178,877 174,836 175,616 184,354' 178,895 184,223 194,326 69 Other branches of parent bank 58,172 69,299 72,878 68,369' 67,228 65,679 70,649' 68,064 71,011 74,062 70 Banks 87,497 79,594 57,355 49,903' 48,062 49,522 50,862' 48,264 52,072 57,116 71 Official institutions 24,697 20,288 15,055 13,912 13,517 13,029 15,400 14,630 13,453 13,852 72 Nonbank foreigners 36,517 48,421 47,060 46,693 46,029 47,386 47,443 47,937 47,687 49,296 73 Other liabilities 8,241 12,145 11,224 9,191 9,599 9,794 9,817 9,348 9,942 9,725 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 155,631 153,209 154,865 156,048 156,803 155,964 158,807 75 To United States 21,785 38,022 53,954 56,952 56,959 58,347 56,924 60,903 57,095 55,799 76 Parent bank 4,225 5,444 13,091 14,461 15,011 16,145 16,852 21,385 17,312 14,021 77 Other banks in United States 5,716 7,502 12,205 13,503 12,993 12,462 12,174 10,751 10,176 11,328 78 Nonbanks 11,844 25,076 28,658 28,988 28,955 29,740 27,898 28,767 29,607 30,450 79 To foreigners 117,438 112,255 99,567 91,545 89,198 89,458 92,122 88,727 91,714 95,944 80 Other branches of parent bank 15,384 16,545 18,361 18,376 17,544 17,595 19,365 18,288 18,841 19,045 81 Banks 56,262 51,336 44,020 38,238 37,192 37,571 37,122 35,847 38,888 41,714 82 Official institutions 21,412 16,517 11,504 10,848 10,146 9,588 11,448 10,611 10,071 10,151 83 Nonbank foreigners 24,380 27,857 25,682 24,083 24,316 24,704 24,187 23,981 23,914 25,034 84 Other liabilities 5,494 6,952 7,546 7,134 7,052 7,060 7,002 7,173 7,155 7,064 85 Total payable in U.S. dollars 103,440 120,277 130,261 124,760 123,265 125,656 127,868 128,600 127,234 131,242 86 To United States 21,080 37,332 53,029 56,092 56,081 57,359 55,931 59,824 55,907 54,691 87 Parent bank 4,078 5,350 12,814 14,308 14,812 15,829 16,673 21,145 17,094 13,839 88 Other banks in United States 5,626 7,249 12,026 13,313 12,833 12,223 11,886 10,523 9,880 11,044 89 Nonbanks 11,376 24,733 28,189 28,471 28,436 29,307 27,372 28,156 28,933 29,808 90 To foreigners 79,636 79,034 73,477 65,428 63,818 64,801 68,252 65,347 68,011 73,376 91 Other branches of parent bank 10,474 12,048 14,300 14,117 13,386 13,421 15,166 14,542 15,044 15,410 92 Banks 35,388 32,298 28,810 23,895 23,453 24,447 24,478 23,136 26,343 29,410 93 Official institutions 17,024 13,612 9,668 8,786 8,065 7,630 9,381 8,742 8,029 8,279 94 Nonbank foreigners 16,750 21,076 20,699 18,630 18,914 19,303 19,227 18,927 18,595 20,277 95 Other liabilities 2,724 3,911 3,755 3,240 3,366 3,4% 3,685 3,429 3,316 3,175 Bahamas and Caymans % Total, all currencies 123,837 149,108 145,156 146,886 142,432 139,699 143,148 141,311 147,257 151,463 97 To United States 59,666 85,759 104,425 111,725 108,623 104,470 104,666 104,198 106,688 110,731 98 Parent bank 28,181 39,451 47,081 53,720 50,777 46,491 45,493 48,264 46,693 50,207 99 Other banks in United States 7,379 10,474 18,466 16,921 15,494' 14,560 16,191 14,303 14,090 15,677 100 Nonbanks 24,106 35,834 38,878 41,084 42,352' 43,419 42,982 41,631 45,905 44,847 101 To foreigners 61,218 60,012 38,274 33,088 31,560 32,875 36,163 34,734 38,109 38,397 102 Other branches of parent bank 17,040 20,641 15,796 11,835' 12,262 12,778 14,698' 14,196 17,075 15,123 103 Banks 29,895 23,202 10,166 9,011' 8,012 8,737 9,506' 9,059 9,618 11,882 104 Official institutions 4,361 3,498 1,967 1,796 2,101 2,170 2,237 1,976 1,624 1,916 105 Nonbank foreigners 9,922 12,671 10,345 10,446 9,185 9,190 9,722 9,503 9,792 9,476 106 Other liabilities 2,953 3,337 2,457 2,073 2,249 2,354 2,319 2,379 2,460 2,335 107 Total payable in U.S. dollars 119,657 145,284 141,908 143,596 139,246 136,227 139,854 137,513 143,603 147,657 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • March 1984 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 1984 IItteemm 11998811 11998822 July Aug. Sept. Oct. Nov/ Dec. Jan.? 1 Total1 169,735 172,718 175,576 172,799 171,550 173,272 173,915 178,185 176,293 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 21,372 22,239 21,914 22,057 22,816 25,545 22,684 3 U.S. Treasury bills and certificates3 52,389 46,658 53,484 50,965 50,374 51,618 52,558 54,341 55,327 U.S. Treasury bonds and notes 4 Marketable 53,186 67,733 70,180 69,295 69,300 69,769 68,995 68,742 69,260 5 Nonmarketable4 11,791 8,750 7,950 7,950 7,950 7,950 7,250 7,250 7,250 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 22,590 22,350 22,012 21,878 22,296 22,307 21,772 By area 7 Western Europe1 65,699 61,298 66,365 64,427 63,845 64,835 65,588 67,608 66,084 8 Canada 2,403 2,070 2,879 2,755 2,712 2,816 2,670 2,443 2,516 9 Latin America and Caribbean 6,953 6,057 5,421 5,676 5,501 5,629 6,468 6,390 6,353 10 Asia 91,607 96,034 94,384 93,183 92,876 92,415 91,566 92,697 92,444 11 Africa 1,829 1,350 1,138 1,173 1,196 1,023 798 958 1,051 12 Other countries6 1,244 5,909 5,389 5,585 5,420 6,554 6,825 8,089 7,845 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 1983 IItteemm 11998800 11998811 11998822 Mar. June Sept. Dec.'' 1 Banks' own liabilities 3,748 3,523 4,844 5,075 5,867 5,943 4,772 2 Banks' own claims 4,206 4,980 7,707 8,097 7,851 7,919 7,270 3 Deposits 2,507 3,398 4,251 3,725 3,911 3,063 2,852 4 Other claims 1,699 1,582 3,456 4,372 3,940 4,856 4,418 5 Claims of banks' domestic customers1 962 971 676 637 684 717 1,059 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 1984 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998800 11998811AA 11998822 July Aug. Sept. Oct. Nov. Dec. Jan .P 1 All foreigners 205,297 243,889 307,056 327,300 334,931 337,910 337,766 351,499' 372,051 359,673 2, Banks' own liabilities 124,791 163,817 227,089 239,444 248,250 251,421 248,888 262,343' 281,628 265,815 3 Demand deposits 23,462 19,631 15,889 15,595 15,672 16,375 17,094 17,198' 17,594 16,083 4 Time deposits' 15,076 29,039 68,035 74,721 77,888 81,091 80,468 84,308' 90,019 87,785 Other2 17,583 17,647 23,946 21,932 23,905 24,956 22,565 23,149' 26,124 23,168 6 Own foreign offices3 68,670 97,500 119,219 127,195 130,785 129,000 128,760 137,688' 147,892 138,778 7 Banks' custody liabilities4 80,506 80,072 79,967 87,856 86,682 86,488 88,878 89,156 90,422 93,858 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 65,237 63,939 64,062 65,735 66,746 68,669 71,083 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 17,986 17,977 17,292 17,182 17,721 17,502 17,911 10 Other 2,832 5,970 3,702 4,634 4,765 5,135 5,961 4,690 4,252 4,865 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 5,678 5,555 5,308 4,619 6,321 5,779 4,759 12 Banks' own liabilities 444 638 1,909 4,030 3,433 3,024 3,294 4,897 4,453 2,867 13 Demand deposits 146 262 106 307 325 252 452 437 297 271 14 Time deposits' 85 58 1,664 3,010 2,507 2,168 2,487 4,079 3,707 2,235 15 Other2 212 318 139 713 601 605 355 381 449 361 16 Banks' custody liabilities4 1,900 2,083 3,013 1,648 2,121 2,284 1,325 1,424 1,325 1,892 17 U.S. Treasury bills and certificates 254 541 1,621 678 1,294 1,442 441 484 463 1,045 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 970 828 842 884 939 862 847 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 74,856 73,205 72,289 73,675 75,374 79,886 78,011 21 Banks' own liabilities 17,826 17,109 16,640 15,204 16,014 16,147 16,532 16,673 19,438 16,554 22 Demand deposits 3,771 2,564 1,899 1,774 1,685 1,930 1,818 2,023 1,837 1,823 23 Time deposits' 3,612 4,230 5,528 6,196 5,990 6,185 6,657 6,709 7,417 7,282 24 Other2 10,443 10,315 9,212 7,234 8,340 8,033 8,057 7,940 10,184 7,449 25 Banks' custody liabilities4 68,798 62,018 55,008 59,652 57,191 56,142 57,144 58,701 60,448 61,457 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 53,484 50,965 50,374 51,618 52,558 54,341 55,327 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 6,139 6,186 5,735 5,489 6,115 6,082 6,107 28 Other 54 47 28 29 39 32 36 28 25 23 29 Banks9 96,415 136,008 185,881 195,302 203,153 205,879 203,637 214,169' 229,550 219,092 30 Banks' own liabilities 90,456 124,312 169,449 175,174 182,700 184,811 181,696 192,731' 208,011 196,514 31 Unaffiliated foreign banks 21,786 26,812 50,230 47,978 51,914 55,811 52,936 55,043 60,119 57,736 32 Demand deposits 14,188 11,614 8,675 8,074 8,302 8,618 9,102 8,770 8,756 8,129 33 Time deposits' 1,703 8,720 28,386 26,558 29,300 31,468 30,329 32,265 36,735 34,980 34 Other2 5,895 6,477 13,169 13,346 14,312 15,725 13,505 14,008 14,628 14,628 35 Own foreign offices3 68,670 97,500 119,219 127,195 130,785 129,000 128,760 137,688' 147,892 138,778 36 Banks' custody liabilities4 5,959 11,696 16,432 20,128 20,454 21,069 21,941 21,438 21,540 22,577 37 U.S. Treasury bills and certificates 623 1,685 5,809 8,608 9,028 9,440 10,036 9,967 10,178 10,776 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 7,821 7,581 7,553 7,542 7,251 7,485 7,414 39 Other 2,588 5,611 2,766 3,699 3,845 4,075 4,363 4,221 3,877 4,387 40 Other foreigners 19,914 26,035 44,606 51,464 53,018 54,433 55,834 55,635' 56,836 57,811 41 Banks' own liabilities 16,065 21,759 39,092 45,037 46,103 47,439 47,366 48,042' 49,726 49,879 42 Demand deposits 5,356 5,191 5,209 5,439 5,360 5,575 5,723 5,968 6,703 5,860 43 Time deposits 9,676 16,030 32,457 38,958 40,091 41,270 40,995 41,255' 42,161 43,289 44 Other2 1,033 537 1,426 640 652 594 648 819' 863 730 45 Banks' custody liabilities4 3,849 4,276 5,514 6,428 6,916 6,995 8,468 7,593 7,109 7,932 46 U.S. Treasury bills and certificates 474 699 1,540 2,466 2,652 2,805 3,640 3.737 3,686 3,935 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 3,055 3,383 3,162 3,267 3,415 3,073 3,542 48 Other 190 312 908 906 881 1,028 1,562 441 350 455 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 10,941 10,720 10,336 9,995 10,385 10,381 10,273 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 • March 1984 3.17 Continued 1983 1984 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 July Aug. Sept. Oct. Nov. Dec. Jan.P 1 Total 205,297 243,889 307,056 327,300 334,931 337,910 337,766 351,499' 372,051 359,673 2 Foreign countries 202,953 241,168 302,134 321,622 329,377 332,601 333,147 345,178' 366,272 354,913 3 Europe 90,897 91,275 117,756 118,881 123,607 125,850 126,694 130,091' 137,755 134,897 4 Austria 523 596 519 610 556 659 570 641 585 745 5 Belgium-Luxembourg 4,019 4,117 2,517 2,960 3,116 2,795 2,853 2,465 2,709 2,979 6 Denmark 497 333 509 612 573 593 544 538 466 372 7 Finland 455 296 748 292 459 373 372 375 531 298 8 France 12,125 8,486 8,171 8,850 8,488 8,827 8,638 8,083 9,436 8,209 9 Germany 9,973 7,645 5,351 3,710 3,537 3,438 4,307 4,337 3,588 3,817 10 Greece 670 463 537 588 636 604 595 544 520 511 11 Italy 7,572 7,267 5,626 7,790 7,277 6,931 7,703 7,819 8,459 7,622 12 Netherlands 2,441 2,823 3,362 3,415 3,633 3,892 3,735 3,701 4,290 4,008 13 Norway 1,344 1,457 1,567 900 1,044 1,457 1,072 1,531 1,673 1,480 14 Portugal 374 354 388 338 315 302 297 306 373 377 15 Spain 1,500 916 1,405 1,694 1,585 1,678 1,592 1,534 1,602 1,644 16 Sweden 1,737 1,545 1,390 1,407 1,204 1,337 1,489 1,652 1,799 1,845 17 Switzerland 16,689 18,716 29,066 29,972 29,877 29,938 30,725 30,482 32,177 32,014 18 Turkey 242 518 296 224 315 333 277 319 467 334 19 United Kingdom 22,680 28,286 48,172 48,080 53,768 55,602 54,746 58,007' 60,413 61,714 20 Yugoslavia 681 375 499 427 462 506 464 552 562 506 21 Other Western Europe1 6,939 6,541 7,006 6,514 6,347 6,038 6,102 6,660 7,433 5,876 22 U.S.S.R 68 49 50 45 31 23 37 27 65 62 23 Other Eastern Europe2 370 493 576 453 384 525 576 518 607 486 24 Canada 10,031 10,250 12,232 16,838 17,918 16,470 16,325 16,349 16,025 16,233 25 Latin America and Caribbean 53,170 85,223 114,163 124,449 126,631 127,077 127,237 135,056' 143,263 136,440 26 Argentina 2,132 2,445 3,578 5,017 4,249 4,148 4,018 4,377 4,011 4,301 27 Bahamas 16,381 34,856 44,744 54,506 51,992 49,859 51,180 53,551 56,546 53,479 28 Bermuda 670 765 1,572 2,363 2,849 2,833 2,632 2,582 2,333 2,745 29 Brazil 1,216 1,568 2,014 2,704 3,046 3,406 3,818 4,150' 3,364 2,989 30 British West Indies 12,766 17,794 26,381 24,337 26,967 28,442 27,410 31,695' 36,738 32,368 31 Chile 460 664 1,626 1,385 1,472 1,613 1,697 1,783 1,842 1,811 32 Colombia 3,077 2,993 2,594 1,618 1,674 1,611 1,617 1,645 11,,668899 11,,558833 33 Cuba 6 9 9 11 12 10 10 10 88 1111 34 Ecuador 371 434 455 532 601 670 825 1,003 1,047 826 35 Guatemala 367 479 670 697 718 758 750 766 788 780 36 Jamaica 97 87 126 108 106 109 105 234 140 113 37 Mexico 4,547 7,235 8,377 9,142 9,445 9,697 9,449 9,463' 10,196 10,839 38 Netherlands Antilles 413 3,182 3,597 3,434 3,486 3,581 3,858 3,941 3,868 3,730 39 Panama 4,718 4,857 4,805 5,608 5,934 6,079 5,902 5,944' 6,102 5,575 40 Peru 403 694 1,147 1,055 1,129 1,203 1,049 1,090' 1,166 1,127 41 Uruguay 254 367 759 960 1,033 1,116 1,202 1,173' 1,226 1,277 42 Venezuela 3,170 4,245 8,417 7,715 8,587 8,382 8,202 8,024' 8,598 9,311 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,257 3,331 3,561 3,513 3,626 3,600 3,575 44 Asia 42,420 49,822 48,716 53,068 5522,,664499 5544,,558833 5533,,337700 5544,,112211'' 5588,,337766 5566,,445566 China 45 Mainland 49 158 203 192 176 190 216 183' 249 249 46 Taiwan 1,662 2,082 2,761 3,913 4,086 3,852 3,992 4,063 3,997 4,309 47 Hong Kong 2,548 3,950 4,465 5,581 5,614 6,582 6,507 6,971' 6,610 6,345 48 India 416 385 433 606 528 712 830 725 464 670 49 Indonesia 730 640 857 1,245 839 622 871 661 997 1,092 50 Israel 883 592 606 676 823 848 812 808 1,722 856 51 Japan 16,281 20,750 16,078 17,655 16,922 17,418 17,103 17,138' 18,103 17,243 52 Korea 1.528 2,013 1,692 1,552 1,553 1,478 1,353 1.591 1,648 1,614 53 Philippines 919 874 770 770 933 1,181 747 1,012 1,234 1,232 54 Thailand 464 534 629 537 531 581 522 569 716 776 55 Middle-East oil-exporting countries3 14,453 12,992 13,433 11,875 11,764 12,661 12,410 12,492 12,959 12,464 56 Other Asia 2,487 4,853 6,789 8,467 8,877 8,458 8,007 7,907 9,679 9,606 57 Africa 5,187 3,180 3,124 2,916 2,853 3,132 2,845 2,694 2,799 2,915 58 Egypt 485 360 432 554 465 488 576 589 645 569 59 Morocco 33 32 81 57 48 84 73 96 84 109 60 South Africa 288 420 292 403 452 520 394 389 449 486 61 Zaire 57 26 23 55 29 34 43 32 87 61 62 Oil-exporting countries4 3,540 1,395 1,280 928 934 963 736 679 620 869 63 Other Africa 783 946 1,016 919 926 1,042 1,023 909 914 821 64 Other countries 1,247 1,419 6,143 5,469 5,719 5,490 6,675 6,868 8,054 7,972 65 Australia 950 1,223 5,904 5,250 5,512 5,284 6,461 6,666 7,857 7,735 66 All other 297 196 239 219 208 206 214 202 197 237 67 Nonmonetary international and regional organizations 2,344 2,721 4,922 5,678 5,555 5,308 4,619 6,321 5,779 4,759 68 International 1,157 1,661 4,049 4,987 4,861 4,674 3,944 5,556 5,095 4,174 69 Latin American regional 890 710 517 454 441 445 437 415 419 433 70 Other regional5 296 350 357 237 252 189 238 350 265 152 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 (Truciai 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 June July Aug. Sept. Oct. Nov. Dec. 1 Total 172,592 251,589 355,705 373,887 367,281 372,387 375,536 372,790 376,937 384,394 2 Foreign countries 172,514 251,533 355,636 373,444 366,945 372,068 374,939 372,730 376,867 384,230 3 Europe 32,108 49,262 85,584 86,827 84,882 87,996 90,522 88,718 89,570 89,525 4 Austria 236 121 229 342 383 338 351 334 395 397 5 Belgium-Luxembourg 1,621 2,849 5,138 5,803 5,471 5,898 5,650 5,503 5,548 5,460 6 Denmark 127 187 554 1,098 1,096 1,124 1,131 1,103 1,272 1,213 7 Finland 460 546 990 870 724 637 697 789 822 989 8 France 2,958 4,127 7,251 7,942 7,953 8,589 7,869 7,390 7,885 8,564 9 Germany 948 940 1,876 1,404 1,112 1,168 1,428 1,095 1,256 1,234 10 Greece 256 333 452 574 458 375 408 369 412 476 11 Italy 3,364 5,240 7,560 7,335 7,406 7,412 7,038 7,686 8,432 9,175 17 Netherlands 575 682 1,425 1,165 967 1,048 1,189 1,071 1,390 1,231 n Norway 227 384 572 652 598 634 550 575 590 684 14 Portugal 331 529 ( 950 849 844 848 861 893 891 932 15 Spain 993 2,095 3,744 3,207 3,345 3,373 3,389 3,128 3,634 3,527 16 Sweden 783 1,205 3,038 2,859 2,910 2,836 3,081 3,059 3,252 3,232 17 Switzerland 1,446 2,213 1,639 1,603 1,727 1,630 1,765 1,579 2,112 1,834 18 Turkey 145 424 560 570 629 594 616 660 693 798 19 United Kingdom 14,917 23,849 45,781 46,689 45,664 47,863 50,780 49,841 47,198 45,774 20 Yugoslavia 853 1,225 1,430 1,464 1,381 1,351 1,369 1,468 1,582 1,692 21 Other Western Europe1 179 211 368 334 358 406 529 394 428 462 22 U.S.S.R 281 377 263 373 288 232 215 206 176 245 23 Other Eastern Europe2 1,410 1,725 1,762 1,692 1,566 1,640 1,606 1,575 1,601 1,604 24 Canada 4,810 9,193 13,678 16,694 16,517 17,501 16,525 15,885 16,390 16,223 25 Latin America and Caribbean 92,992 138,347 187,969 199,102 195,289 195,281 194,391 195,109 200,423 204,687 26 Argentina 5,689 7,527 10,974 11,243 11,112 11,334 11,444 11,618 11,899 11,823 27 Bahamas 29,419 43,542 56,649 61,820 58,836 54,687 55,009 56,220 58,919 59,885 28 Bermuda 218 346 603 447 342 390 578 489 559 568 29 Brazil 10,496 16,926 23,271 23,359 23,742 24,231 24,282 24,202 24,573 24,442 30 British West Indies 15,663 21,981 29,101 32,738 30,432 32,266 30,877 30,796 32,139 35,180 31 Chile 1,951 3,690 5,513 5,161 5,188 5,404 5,792 5,740 5,860 6,060 32 Colombia 1,752 2,018 3,211 3,601 3,656 3,592 3,665 3,648 3,734 3,826 33 Cuba 3 3 3 0 0 0 0 3 0 0 34 Ecuador 1,190 1,531 2,062 2,038 2,018 2,014 2,020 2,154 2,262 2,336 35 Guatemala3 137 124 124 90 96 100 112 115 122 133 36 Jamaica3 36 62 181 207 209 204 214 203 210 209 37 Mexico 12,595 22,439 29,552 32,426 32,962 33,689 33,740 33,521 33,728 34,514 38 Netherlands Antilles 821 1,076 839 522 943 838 897 988 1,164 1,064 39 Panama 4,974 6,794 10,210 8,840 9,177 10,093 9,189 8,835 8,336 7,570 40 Peru 890 1,218 2,357 2,627 2,506 2,421 2,470 2,434 2,469 2,537 41 Uruguay 137 157 686 820 833 820 857 883 903 964 42 Venezuela 5,438 7,069 10,643 11,036 11,121 11,045 11,037 10,881 11,088 11,193 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,129 2,115 2,152 2,209 2,379 2,457 2,383 44 39,078 49,851 60,952 62,812 62,069 62,585 64,751 63,772 61,154 64,485 China 45 Mainland 195 107 214 166 124 179 227 295 249 292 46 Taiwan 2,469 2,461 2,288 1,760 1,715 1,644 1,829 1,618 1,572 1,720 47 Hong Kong 2,247 4,132 6,787 7,917 8,096 8,022 8,704 8,287 8,782 7,925 48 India 142 123 222 230 245 275 259 324 305 302 49 Indonesia 245 352 348 544 595 635 688 697 711 501 50 Israel 1,172 1,567 2,029 2,181 1,657 1,648 1,726 1,780 1,817 1,780 51 Japan 21,361 26,797 28,379 27,611 27,876 27,438 28,563 28,239 25,773 29,062 57 Korea 5,697 7,340 9,387 9,129 9,639 9,696 9,634 9,314 9,624 9,516 53 Philippines 989 1,819 2,625 2,820 2,630 2,540 2,777 2,369 2,427 2,056 54 Thailand 876 565 643 788 689 735 806 831 867 974 55 Middle East oil-exporting countries4 1,432 1,581 3,087 4,461 4,003 4,654 4,142 4,630 4,236 4,979 56 Other Asia 2,252 3,009 4,943 5,207 4,800 5,119 5,395 5,388 4,791 5,379 57 Africa 2,377 3,503 5,346 5,665 5,940 6,527 6,482 6,889 6,808 6,676 58 Egypt 151 238 322 450 486 529 596 623 670 683 59 Morocco 223 284 353 463 484 444 444 462 461 446 60 South Africa 370 1,011 2,012 2,231 2,407 2,630 2,719 2,582 2,892 2,650 61 Zaire 94 112 57 46 45 40 38 38 37 33 62 Oil-exporting countries5 805 657 801 830 850 1,052 964 1,481 1,039 1,101 63 Other 734 1,201 1,802 1,645 1,668 1,832 1,722 1,703 1,709 1,764 64 Other countries 1,150 1,376 2,107 2,343 2,248 2,178 2,267 2,357 2,522 2,633 65 Australia 859 1,203 1,713 1,724 1,635 1,637 1,675 1,692 1,899 2,078 66 All other 290 172 394 620 613 542 593 664 624 555 67 Nonmonetary international and regional organizations6 78 56 68 443 336 319 598 60 70 164 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 • March 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 June July Aug. Sept. Oct. Nov. Dec. I Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555555555557777777 333333399999996666666,,,,,,,000000011111115555555 444444400000009999999,,,,,,,555555599999992222222 444444411111111111111,,,,,,,666666633333339999999 444444422222224444444,,,,,,,222222266666666666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555588888889999999 333333355555555555555,,,,,,,777777700000005555555 333333377777773333333,,,,,,,888888888888887777777 367,281 372,387 333333377777775555555,,,,,,,555555533333336666666 372,790 376,937 333333399999991111111,,,,,,,111111199999990000000 3 4 3 4 OO FFoo ww rr nn eeii gg ffoo nn rr ee pp ii uu gg bb nn ll ii oo cc ff ff bb ii oo ccee rrrr ss oo 11 wweerrss 2 6 2 6 2 6 2 6 2 6 2 6 2 65555555 0000000 ,,,,,,, ,,,,,,, 0000000 8888888 8888888 8888888 4444444 2222222 3 9 3 9 3 9 3 9 3 9 3 9 3 96666666 1111111 ,,,,,,, ,,,,,,, 6666666 2222222 5555555 6666666 3333333 0000000 1111111 4444444 2222222 5555555 7777777 ,,,,,,, ,,,,,,, 4444444 2222222 2222222 9999999 2222222 3333333 1111111 4444444 4444444 9999999 0000000 ,,,,,,, ,,,,,,, 9999999 2222222 6666666 3333333 4444444 3333333 1 5 3 0 5 , , 3 8 3 4 7 0 1 5 3 2 7 , , 0 1 0 6 9 6 1111111 5555555 3333333 3333333 7777777 ,,,,,,, ,,,,,,, 6666666 3333333 9999999 8888888 9999999 2222222 1 5 4 4 1 , , 7 9 7 7 0 1 1 5 3 6 9 , , 0 7 0 5 7 9 1111111 5555555 4444444 7777777 6666666 ,,,,,,, ,,,,,,, 6666666 7777777 9999999 5555555 7777777 5555555 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,777777700000004444444 111111122222221111111,,,,,,,333333377777777777777 111111122222221111111,,,,,,,000000099999991111111 117,955 120,732 111111122222221111111,,,,,,,999999900000000000000 114,390 118,180 111111122222223333333,,,,,,,000000066666662222222 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333388888881111111 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,111111166666667777777 46,368 47,345 44444448888888,,,,,,,111111177777779999999 44,613 44,533 44444446666666,,,,,,,333333366666666666666 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 77777773333333,,,,,,,999999922222224444444 71,588 73,386 77777773333333,,,,,,,777777722222221111111 69,777 73,647 77777776666666,,,,,,,666666699999996666666 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,666666611111114444444 66666662222222,,,,,,,555555599999999999999 63,148 62,480 66666662222222,,,,,,,555555555555556666666 61,658 62,991 66666663333333,,,,,,,666666677777776666666 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333335555555,,,,,,,777777700000005555555 33333336666666,,,,,,,111111100000002222222 33333333333333,,,,,,,000000077777776666666 1100 DDeeppoossiittss 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,666666633333331111111 2222222,,,,,,,666666655555554444444 3333333,,,,,,,111111177777772222222 11 Negotiable and readily transferable instruments3 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,999999933333337777777 22222227777777,,,,,,,555555555555550000000 22222224444444,,,,,,,000000033333337777777 12 Outstanding collections and other claims 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 6666666,,,,,,,111111133333337777777 5555555,,,,,,,888888899999998888888 5555555,,,,,,,888888866666667777777 13 MEMO: Customer liability on acceptances 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,111111155555553333333 33333334444444,,,,,,,999999900000001111111 33333334444444,,,,,,,555555588888885555555 33333337777777,,,,,,,333333322222228888888 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 40,306 41,702 41,162 41,443 41,899 41,652 44,189 46,520 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 Maturity; by borrower and area Mar. June Sept. 1 Total 106,748 154,590 228,150 230,112 232,126 233,676 240,860 By borrower 2 Maturity of 1 year or less1 82,555 116,394 173,917 174,152 174,570 174,629 174,086 3 Foreign public borrowers .... 9,974 15,142 21,256 21,768 23,030 25,519 24,000 4 5 Ma A t l u l ri o t t y h e o r f f o o v r e e r i g 1 n e y r e s a r1 7 2 2 4 , , 5 1 8 9 1 3 1 3 0 8 1 , , 1 2 9 5 7 2 1 5 5 4 2 , , 2 6 3 6 3 1 1 5 5 5 1 , , 9 38 6 4 0 1 5 5 7 1 , , 5 54 5 1 6 1 5 4 9 9 , , 0 11 4 1 6 1 6 5 6 0 , , 7 0 7 8 4 6 6 Foreign public borrowers.... 10,152 15,589 23,137 24,859 26,206 27,077 32,667 7 All other foreigners 14,041 22,608 31,095 31,100 31,349 31,970 34,107 By area Maturity of 1 year or less1 8 Europe 18,715 28,130 50,500 54,109 52,039 52,665 54,677 1 9 0 C L a a n ti a n d A a merica and Caribbean 3 2 2 , ,0 7 3 2 4 3 4 4 8 , , 6 7 6 1 2 7 73 7 , ,6 2 4 9 2 1 7 6 5 , ,1 8 2 6 2 1 74 7 , , 7 0 6 5 8 5 76 6 , , 0 4 3 4 1 3 7 5 3 , , 9 8 8 0 6 2 11 Asia 26,686 31,485 37,578 32,753 35,327 33,442 34,004 1 1 2 3 Ma A A tu l f l r r i i o c ty t a h e o r f 2 over 1 year1 1,7 6 5 4 7 0 2,4 9 5 4 7 3 3 1 , , 6 2 8 26 0 3 1 , , 8 4 7 3 2 5 3 1 , , 8 5 5 2 4 7 4 1 , , 6 3 5 9 7 1 4 1 , , 2 4 0 1 1 6 14 Europe 5,118 8,100 11,636 11,986 12,238 11,613 13,009 1 1 5 6 L C a a t n i a n d A a merica and Caribbean 1 1 5 , , 4 0 4 7 8 5 25 1 , , 2 8 0 08 9 35 1 , , 2 9 4 3 7 1 35 1 , , 8 9 4 2 2 4 36 1 , , 6 8 7 6 1 1 38 1 , , 2 7 5 5 4 6 43 1 , , 5 8 8 5 3 7 17 Asia 1,865 1,907 3,185 3,573 4,053 4,581 4,850 1 1 8 9 A A l f l r i o c t a h er2 5 1 0 7 7 9 9 27 0 2 0 1,4 7 9 4 4 0 1 1 , , 4 1 8 5 5 0 1 1, ,6 0 6 66 7 1 1, ,7 1 3 08 4 2 1 , , 2 1 8 8 6 8 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

Nonbank-Reported Data A61 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1981 1982 1983 AArreeaa oorr ccoouunnttrryy 11997799 11998800 Dec. Mar. June Sept. Dec. Mar. June' Sept.' Dec.P 1 Total 303.9 352.0 415.2 419.6 435.3r 438.2' 438.6' 440.6' 436.5 425.5 435.7 2 G-10 countries and Switzerland 138.4 162.1 175.5 174.5 176.3' 175.4' 179.7' 182.1' 176.7 167.8 167.1 3 Belgium-Luxembourg 11.1 13.0 13.3 13.2 14.1 13.6 13.1 13.7 13.3 12.6 12.4 4 France 11.7 14.1 15.3 16.0 16.5 15.8 17.1 17.1 17.1 16.2 16.3 5 Germany 12.2 12.1 12.9 12.5 12.7 12.2 12.7 13.4 12.6 11.6 11.4 6 Italy 6.4 8.2 9.6 9.0 9.0 9.7 10.3 10.2 10.5 9.9 11.7 7 Netherlands 4.8 4.4 4.0 4.0 4.1 3.8 3.6 4.3 4.0 3.6 3.5 8 Sweden 2.4 2.9 3.7 4.1 4.0 4.7 5.0 4.3 4.7 4.9 5.1 9 Switzerland 4.7 5.0 5.5 5.3 5.1 5.1 5.0 4.6 4.8 4.2 4.3 10 United Kingdom 56.4 67.4 70.1 70.3 69.4' 70.3' 72.1' 72.9' 70.2 67.0 64.1 11 Canada 6.3 8.4 10.9 11.6 11.4 11.0 10.4 12.4 10.8 9.0 8.3 12 Japan 22.4 26.5 30.2 28.5 29.9 29.3 30.2' 29.2' 28.7 28.9 30.0 13 Other developed countries 19.9 21.6 28.4 30.7 32.1 32.7 33.7 33.9 34.4 34.1 36.0 14 Austria 2.0 1.9 1.9 2.1 2.1 2.0 1.9 2.1 2.1 1.9 1.9 15 Denmark 2.2 2.3 2.3 2.5 2.6 2.5 2.4 3.3 3.4 3.3 3.5 16 Finland 1.2 1.4 1.7 1.6 1.6 1.8 2.2 2.1 2.1 1.8 2.4 17 Greece 2.4 2.8 2.8 2.9 2.7 2.6 3.0 2.9 2.9 2.9 2.8 18 Norway 2.3 2.6 3.1 3.2 3.2 3.4 3.3 3.3 3.4 3.2 3.2 19 Portugal .7 .6 1.1 1.2 1.5 1.6 1.5 1.4 1.4 1.3 1.3 20 Spain 3.5 4.4 6.6 7.2 7.3 7.7 7.5 7.0 7.2 7.1 7.2 21 Turkey 1.4 1.5 1.4 1.6 1.5 1.5 1.4 1.5 1.4 1.5 1.7 22 Other Western Europe 1.4 1.7 2.1 2.1 2.2 2.1 2.3 2.2 2.0 2.1 1.9 23 South Africa 1.3 1.1 2.8 3.3 3.5 3.6 3.7 3.6 3.9 4.7 4.7 24 Australia 1.3 1.3 2.5 3.0 4.0 4.0 4.4 4.6 4.5 4.4 5.5 25 OPEC countries2 22.9 22.7 24.8 25.4 26.4 27.3 27.4 28.5 28.2 27.2 29.1 26 Ecuador 1.7 2.1 2.2 2.3 2.4 2.3 2.2 2.2 2.2 2.1 2.2 27 Venezuela 8.7 9.1 9.9 10.0 10.1 10.4 10.5 10.4 10.4 9.8 9.9 28 Indonesia 1.9 1.8 2.6 2.7 2.8 2.9 3.2 3.5 3.2 3.4 3.8 29 Middle East countries 8.0 6.9 7.5 8.2 8.7 9.0 8.7 9.3 9.5 9.0 10.0 30 African countries 2.6 2.8 2.5 2.2 2.5 2.7 2.8 3.0 3.0 2.8 3.1 31 Non-OPEC developing countries 63.0 77.4 96.3 97.5 103.6 104.0 107.0 107.6' 108.2 108.8 111.1 Latin America 32 Argentina 5.0 7.9 9.4 10.0 9.6 9.2 8.9 9.0 9.4 9.5 9.6 33 Brazil 15.2 16.2 19.1 19.7 21.4 22.4 22.9 23.1 22.5 22.9 23.0 34 Chile 2.5 3.7 5.8 6.0 6.4 6.2 6.3 6.0 5.8 6.2 6.5 35 Colombia 2.2 2.6 2.6 2.3 2.6 2.8 3.1 2.9 3.2 3.2 3.2 36 Mexico 12.0 15.9 21.6 22.9 25.2 25.0 24.5 25.1' 25.2 25.8 26.1 37 Peru 1.5 1.8 2.0 1.9 2.5 2.6 2.6 2.4 2.6 2.4 2.4 38 Other Latin America 3.7 3.9 4.1 4.1 4.0 4.3 4.0 4.2 4.3 4.2 4.3 Asia China 39 Mainland .1 .2 .2 .2 .3 .2 .2 .2 .2 .2 .3 40 Taiwan 3.4 4.2 5.1 5.1 5.0 4.9 5.2 5.1 5.1 5.2 5.3 41 India .2 .3 .3 .5 .5 .5 .6 .4 .5 .5 .6 42 Israel 1.3 1.5 2.1 1.7 2.2 1.9 2.3 2.0 2.3 1.7 1.8 43 Korea (South) 5.4 7.1 9.4 8.6 8.9 9.3 10.8 10.8 10.8 10.8 11.3 44 Malaysia 1.0 1.1 1.7 1.7 1.9 1.8 2.1 2.5 2.6 2.8 2.9 45 Philippines 4.2 5.1 6.0 5.9 6.3 6.0 6.3 6.6 6.4 6.2 6.2 46 Thailand 1.5 1.6 1.5 1.4 1.3 1.3 1.6 1.6 1.8 1.7 1.9 47 Other Asia .5 .6 1.0 1.2 1.1 1.3 1.1 1.4 1.2 1.0 1.0 Africa 48 Egypt .6 .8 1.1 1.3 1.3 1.3 1.2 1.1 1.3 1.4 1.4 49 Morocco .6 .7 .7 .7 .7 .8 .7 .8 .8 .8 .8 50 Zaire .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.3 2.3 2.3 2.2 2.4 2.3 2.2 2.4 2.3 52 Eastern Europe 7.3 7.4 7.8 7.2 6.7 6.3 6.2 5.8 5.7 5.3 5.4 53 U.S.S.R .7 .4 .6 .4 .4 .3 .3 .3 .4 .2 .2 54 Yugoslavia 1.8 2.3 2.5 2.5 2.4 2.2 2.2 2.2 2.3 2.3 2.4 55 Other 4.8 4.6 4.7 4.3 3.9 3.8 3.7 3.3 3.0 2.8 2.8 56 Offshore banking centers 40.4 47.0 63.7 65.7 72.0 72.1' 66.8' 66.1' 67.3 65.5 70.2 57 Bahamas 13.7 13.7 19.0 20.2 24.1 21.4 19.0' 17.3' 19.5 19.0 21.9 58 Bermuda .8 .6 .7 .7 .7 .8 .9 1.0 .8 .8 .9 59 Cayman Islands and other British West Indies 9.4 10.6 12.4 12.1 12.3 13.6 12.9 11.9 12.1 10.2 12.0 60 Netherlands Antilles 1.2 2.1 3.2 3.2 3.0 3.3 3.3 3.1 2.6 4.1 4.1 61 Panama4 4.3 5.4 7.7 7.2 7.4 8.1 7.6 7.1 6.6 5.7 6.0 62 Lebanon .2 .2 .2 .2 .2 .1 .1 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 11.8 12.9 14.3 15.0' 13.9' 15.2' 14.5 15.1 14.9 64 Singapore 4.5 5.9 8.7 9.3 9.9 9.8 9.1 10.3 11.0 10.4 10.2 65 Others5 .4 .3 .1 .1 .1 .0 .0 .0 .0 .1 .0 66 Miscellaneous and unallocated6 11.7 14.0 18.8 18.5 18.4 20.3 17.9 16.7' 16.1 16.8 16.8 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 • March 1984 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 Sept. Dec. Mar. June Sept. 1 Total 17,433 29,434 28,618 25,149 25,142 22,925 22,381 24,177 2 Payable in dollars 14,323 25,689 24,909 22,051 22,042 20,032 19,489 21,355 3 Payable in foreign currencies 3,110 3,745 3,709 3,099 3,099 2,893 2,892 2,822 By type 4 Financial liabilities 7,523 11,330 12,157 10,855 10,499 10,478 10,760 10,361 5 Payable in dollars 5,223 8,528 9,499 8,565 8,424 8,533 8,730 8,435 6 Payable in foreign currencies 2,300 2,802 2,658 2,291 2,075 1,945 2,031 1,926 7 Commercial liabilities 9,910 18,104 16,461 14,294 14,642 12,447 11,621 13,815 8 Trade payables 4,591 12,201 10,818 8,084 7,687 5,620 5,981 7,056 9 Advance receipts and other liabilities 5,320 5,903 5,643 6,209 6,955 6,827 5,640 6,760 10 Payable in dollars 9,100 17,161 15,409 13,486 13,618 11,499 10,759 12,919 11 Payable in foreign currencies 811 943 1,052 808 1,024 948 862 896 By area or country Financial liabilities 12 Europe 4,665 6,481 6,825 6,389 6,172 6,090 6,126 5,676 13 Belgium-Luxembourg 338 479 471 494 502 407 436 379 14 France 175 327 709 672 635 685 697 688 15 Germany 497 582 491 446 470 487 460 447 16 Netherlands 829 681 743 759 702 687 728 730 17 Switzerland 170 354 715 670 673 623 595 470 18 United Kingdom 2,477 3,923 3,565 3,212 3,061 3,071 3,060 2,829 19 Canada 532 964 963 753 735 723 854 783 20 Latin America and Caribbean 1,514 3,136 3,356 2,969 2,707 2,690 2,435 2,546 21 Bahamas 404 964 1,279 938 890 817 695 738 22 Bermuda 81 1 7 9 14 18 10 13 23 Brazil 18 23 22 28 28 39 34 32 24 British West Indies 516 1,452 1,241 981 1,002 1,001 932 899 25 Mexico 121 99 102 85 121 149 151 184 26 Venezuela 72 81 98 104 114 121 124 117 27 Asia 804 723 976 714 857 943 1,319 1,322 28 Japan 726 644 792 479 633 699 943 957 29 Middle East oil-exporting countries2 31 38 75 67 69 68 205 201 30 Africa 4 11 14 17 17 20 17 19 31 Oil-exporting countries3 1 1 0 0 0 0 0 0 32 All other4 4 15 24 13 12 13 9 15 Commercial liabilities 33 Europe 3,709 4,402 3,770 3,957 3,639 3,430 3,349 3,384 34 Belgium-Luxembourg 137 90 71 50 52 45 41 47 35 France 467 582 573 762 595 576 615 506 36 Germany 545 679 545 436 459 440 431 461 37 Netherlands 227 219 220 277 346 351 342 243 38 Switzerland 316 499 424 358 363 354 357 448 39 United Kingdom 1,080 1,209 880 1,001 851 679 623 786 40 Canada 924 888 897 1,197 1,496 1,454 1,465 1,407 41 Latin America and Caribbean 1,325 1,300 1,044 1,235 991 1,050 999 11,,006677 42 Bahamas 69 8 2 6 16 4 1 11 43 Bermuda 32 75 67 48 89 117 76 76 44 Brazil 203 111 67 128 60 51 49 48 45 British West Indies 21 35 2 3 32 4 22 14 46 Mexico 257 367 340 499 379 355 391 429 47 Venezuela 301 319 276 269 148 183 219 217 48 Asia 2,991 10,242 9,384 6,641 7,160 5,437 4,799 6,852 49 Japan 583 802 1,094 1,192 1,226 1,235 1,236 1,294 50 Middle East oil-exporting countries2'5 1,014 8,098 7,008 4,178 4,531 2,803 2,294 4,072 51 Africa 728 817 703 669 704 497 492 506 52 Oil-exporting countries3 384 517 344 248 277 158 167 204 53 All other4 233 456 664 595 651 578 518 600 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 Type, and area or country 1980 1981 Sept. Dec. Mar. June 1 Total 31,299 34,482 36,185 30,232 27,988 30,726 31,757 2 Payable in dollars 28,096 31,528 32,582 27,571 25,3^0 27,984 29,114 3 Payable in foreign currencies 3,203 2,955 3,603 2,661 2,628 2,741 2,643 By type 4 Financial claims 18,398 19,763 21,142 18,356 17,033 19,743 21,148 5 Deposits 12,858 14,166 15,081 13,241 12,497 15,092 16,324 6 Payable in dollars 11,936 13,381 14,456 12,828 12,071 14,614 15,897 7 Payable in foreign currencies 923 785 625 413 426 478 426 8 Other financial claims 5,540 5,597 6,061 5,115 4,536 4,651 4,824 9 Payable in dollars 3,714 3,914 3,599 3,419 2,895 3,006 3,226 10 Payable in foreign currencies 1,826 1,683 2,462 1,696 1,641 1,645 1,598 11 Commercial claims 12,901 14,720 15,043 11,877 10,954 10,983 10,609 12 Trade receivables 12,185 13,960 14,007 10,770 9,945 9,780 9,241 13 Advance payments and other claims.. 716 759 1,036 1,106 1,010 1,203 1,367 14 Payable in dollars 12,447 14,233 14,527 11,324 10,394 10,364 9,991 15 Payable in foreign currencies 454 487 516 552 561 619 618 By area or country Financial claims 16 Europe 6,179 6,069 4,596 4,967 4,772 6,066 7,207 17 Belgium-Luxembourg 32 145 43 16 10 58 12 18 France 177 298 285 326 134 90 137 19 Germany 409 230 224 215 178 127 216 20 Netherlands 53 51 50 119 97 140 136 21 Switzerland 73 54 117 60 107 99 34 22 United Kingdom 5,099 4,987 3,546 3,859 3,981 5,301 6,437 23 Canada 5,003 5,036 6,755 4,386 4,287 4,612 4,870 24 Latin America and Caribbean 6,312 7,811 8,812 7,948 7,087 8,173 7,997 25 Bahamas 2,773 3,477 3,650 3,435 3,160 3,756 3,244 26 Bermuda 30 135 18 16 8 10 72 27 Brazil 163 96 30 76 62 50 48 28 British West Indies 2,011 2,755 3,971 3,411 2,929 3,080 3,317 29 Mexico 157 208 313 268 274 352 348 30 Venezuela 143 137 148 133 139 156 152 31 Asia 601 607 758 846 698 712 771 32 Japan 199 189 366 268 153 233 288 33 Middle East oil-exporting countries2 16 20 37 30 15 18 14 34 Africa 258 208 173 165 158 153 154 35 Oil-exporting countries3 49 26 46 50 48 45 48 36 All other4 Commercial claims 4,922 5,544 5,405 4,231 3,758 3,592 3,410 37 Europe 202 233 234 178 150 140 144 38 Belgium-Luxembourg 727 1,129 776 646 473 489 499 39 France 593 599 561 427 356 419 364 40 Germany 298 318 299 268 347 309 242 41 Netherlands 272 354 431 291 339 227 303 42 Switzerland 901 929 985 1,035 793 754 739 43 United Kingdom 44 Canada 859 914 967 666 635 674 716 45 Latin America and Caribbean 2,879 3,766 3,479 2,772 2,514 2,690 2,722 46 Bahamas 21 21 12 19 21 30 30 47 Bermuda 197 108 223 154 259 172 108 48 Brazil 645 861 668 481 258 401 512 49 British West Indies 16 34 12 7 12 21 21 50 Mexico 708 1,102 1,022 869 767 956 51 Venezuela 343 410 424 373 351 273 52 Asia 3,451 3,522 3,959 3,098 3,045 3,126 2,871 53 Japan 1,177 1,052 1,245 973 1,047 1,115 949 54 Middle East oil-exporting countries2 765 825 905 777 748 701 700 5 5 5 6 Af O ri i c l a -e xporting countries3 5 1 5 3 1 0 6 1 5 5 3 3 7 1 7 5 2 2 6 1 6 4 1 8 140 5 1 5 3 9 1 5 1 2 3 8 0 57 All other4 321 415 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 • March 1984 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1984 1983 1984 LYOZ Jan. July Aug. Sept. Oct. Nov. Dec. Jan.? U.S. corporate securities STOCKS 1 Foreign purchases 41,881 69,890 5,427 5,758 5,181 5,516 5,530 4,849' 6,020 5,427 2 Foreign sales 37,981 64,472 5,796 5,203 5,168 5,116 5,392 4,785' 5,745 5,796 3 Net purchases, or sales (—) 3,901 5,418 -368 555 13 400 138 64' 275 -368 4 Foreign countries 3,816 5,320 -357 546 14 392 134 64 282 -357 5 Europe 2,530 3,980 -167 437 71 261 -99 -59' -278 -167 6 France -143 -100 -71 33 -77 -10 -36 -66 -64 -71 7 Germany 333 1054 94 135 54 48 55 53 -51 94 8 Netherlands -63 -110 0 7 -13 -49 -15 24 13 0 9 Switzerland -579 1,313 -92 187 56 123 -18 -97 -208 -92 10 United Kingdom 3,117 1,808 -93 49 79 171 -136 21 51 -93 11 Canada 222 1,149 80 1 75 154 124 -1' 183 80 12 Latin America and Caribbean 317 531 120 35 -98 106 -41 17 239 120 13 Middle East1 366 -808 -360 -59 -88 -178 49 45' 13 -360 14 Other Asia 247 403 -51 146 75 51 103 63 123 -51 15 Africa 2 42 5 0 7 4 -1 1 2 5 16 Other countries 131 24 16 -12 -28 -6 -1 -3 1 16 17 Nonmonetary international and regional organizations 85 98 -11 9 -1 8 4 0 -7 -11 BONDS2 18 Foreign purchases 21,639 23,966 1,770 1,438 2,141 1,888 2,537 2,039 1,661 1,770 19 Foreign sales 20,188 23,075 1,805 1,463 1,995 1,960 2,492 1,304 1,493 1,805 20 Net purchases, or sales (—) 1,451 890 -35 -25 146 -72 45 735 168 -35 21 Foreign countries 1,479 875 -24 -49 44 -77 142 715 161 -24 22 Europe 2,082 892 -3 -74 115 14 303 458 -87 -3 23 France 305 -89 -1 -5 -6 0 2 -31 -4 -1 24 Germany 2,110 286 -38 -8 25 41 66 53 -10 -38 25 Netherlands 33 51 3 5 -3 1 11 5 3 3 26 Switzerland 157 632 12 -8 -1 -19 7 15 78 12 27 United Kingdom -589 429 54 -33 112 32 136 390 -126 54 28 Canada 24 123 -20 53 -3 -10 22 46 -22 -20 29 Latin America and Caribbean 159 100 9 13 -21 4 24 -6 20 9 30 Middle East1 -752 -1,133 -22 -119 -121 -105 -249 116 43 -22 31 Other Asia -22 841 12 78 74 19 45 101 207 12 32 Africa -19 0 -1 0 0 2 0 0 0 -1 33 Other countries 7 52 0 0 0 -2 -4 0 0 0 34 Nonmonetary international and regional organizations -28 15 -11 24 102 6 -97 20 7 -11 Foreign securities 35 Stocks, net purchases, or sales (-) -1,341 -3,848 -94 -487 -214 -106 -14 -17' -190 -94 36 Foreign purchases 7,163 13,124 1,200 972 1,032 1,297 1,140 906' 1,127 1,200 37 Foreign sales 8,504 16,973 1,294 1,458 1,246 1,403 1,154 923 1,317 1,294 38 Bonds, net purchases, or sales (-) -6,631 -3,677 569 -219 -463 -54 -172 173' -689 569 39 Foreign purchases 27,167 35,626 3,489 2,534 2,708 3,714 3,902 3,113' 3,072 3,489 40 Foreign sales 33,798 39,302 2,921 2,754 3,171 3,768 4,075 2,940 3,761 2,921 41 Net purchases, or sales (-), of stocks and bonds .... -7,972 -7,525 475 -706 -677 -160 -186 155' -879 475 42 Foreign countries -6,806 -7,028 446 -715 -684 -146 -235 51' -718 446 43 Europe -2,584 -5,630 188 -682 -301 124 -338 -417 -448 188 44 Canada -2,363 -1,582 111 55 -97 -355 6 37 r -64 111 45 Latin America and Caribbean 336 1,120 113 47 62 23 5 135 17 113 46 Asia -1,822 -912 37 -145 23 105 90 160 -80 37 47 Africa -9 141 -5 11 14 16 11 1 0 -5 48 Other countries -364 -164 2 0 -385 -59 -10 135 -143 2 49 Nonmonetary international and regional organizations -1,165 -498 28 9 7 -14 49 105 -161 28 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 1984 1983 1984 Country or area 11998822 11998833 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. P Holdings (end of period)1 1 Estimated total2 ... 88885555,,,,222222220000 88888888,,,,999999990000 88888888,,,,888833333333 88887777,,,,444488883333 88888888,,,,666666661111 99990000,,,,999988888888 88889999,,,,555555559999'''' 88888888,,,,999999990000 88889999,,,,666699994444 2 Foreign countries2 88880000,,,,666633337777 88883333,,,,888899995555 88883333,,,,666611115555 88882222,,,,777799990000 88882222,,,,777766663333 88884444,,,,333355558888 88883333,,,,777744443333'''' 88883333,,,,888899995555 88884444,,,,666600003333 3 Europe2 22229999,,,,222288884444 33335555,,,,444488882222 33333333,,,,000088882222 33332222,,,,999999996666 33333333,,,,333377770000 33334444,,,,444411115555 33335555,,,,000055551111'''' 33335555,,,,444488882222 33335555,,,,999966669999 4 Belgium-Luxembourg 444444447777 11116666 99999999 99995555 55558888 11118888 2222 11116666 33333333 5 Germany2 14,841 17,290 16,315 16,119 16,156 16,570 17,092 17,290 17,581 6 Netherlands 2,754 3,129 3,262 3,234 3,034 2,987 3,048 3,129 3,113 7 Sweden 677 842 684 644 666 714 758 842 848 8 Switzerland2 1,540 1,118 855 965 1,087 1,177 1,064 1,118 1,167 9 United Kingdom 6,549 8,524 8,235 8,270 8,289 8,629 8,626 8,524 8,723 10 Other Western Europe 2,476 4,563 3,631 3,669 4,081 4,321 4,461' 4,563 4,505 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 602 1,301 1,058 1,088 1,063 1,265 1,225 1,301 1,293 13 Latin America and Caribbean 1,076 864 886 800 774 695 914 864 1,426 14 Venezuela 188 64 62 62 65 66 64 64 64 15 Other Latin America and Caribbean 656 716 636 622 631 540 674 716 697 16 Netherlands Antilles 232 83 188 116 78 89 176 83 665 17 Asia 49,543 46,129 48,437 47,733 47,430 47,849 46,43c 46,129 45,802 18 Japan 11,578 13,910 12,763 13,007 13,210 13,446 13,600 13,910 14,012 19 Africa 77 79 79 79 79 79 79 79 79 20 All other 55 40 74 94 48 56 43 40 33 21 Nonmonetary international and regional organizations . 4,583 5,095 5,218 4,693 5,898 6,630 5,816 5,095 5,091 22 International 4,186 4,404 4,500 4,086 5,421 6,094 5,030 4,404 4,467 23 Latin American regional 6 6 6 6 6 6 0 6 6 Transactions (net purchases, or sales (-) during period) 24 Total2 14,972 3,769 704 -2,281 -1,350 1,178 2,327 -1,422' -575 704 25 Foreign countries2 16,072 3,258 707 -1,315 -826 -26 1,595 -615' 153 707 26 Official institutions 14,550 997 518 -914 -885 5 468 -774' -252 518 27 Other foreign2 1,518 2,266 190 -400 59 -31 1,126 159' 406 190 28 Nonmonetary international and regional organizations -1,097 506 -3 -966 -523 1,205 731 -808 -729 -3 MEMO: Oil-exporting countries 29 Middle East3 7,575 -5,397 -515 -172 -1,764 -305 -373 -968 -60 -515 30 Africa4 -552 -1 0 0 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 Feb. 29, 1984 Rate on Feb. 29, 1984 Rate on Feb. 29, 1984 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 3.75 Mar. 1983 France1 12.0 Dec. 1983 Norway 8.0 June 1979 Belgium. 11.0 Feb. 1984 Germany, Fed. Rep. of 4.0 Mar. 1983 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 16.0 Feb. 1984 United Kingdom2. Canada.. 10.0 Feb. 1984 Japan 5.0 Oct. 1983 Venezuela 11.0 May 1983 Denmark 7.0 Oct. 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 • March 1984 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 1984 CCoouunnttrryy,, oorr ttyyppee 11998811 11998822 11998833 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 Eurodollars 16.79 12.24 9.57 10.27 9.82 9.54 9.79 10.08 9.78 9.91 2 United Kingdom 13.86 12.21 10.06 9.83 9.63 9.34 9.26 9.34 9.40 9.35 3 Canada 18.84 14.38 9.48 9.49 9.35 9.31 9.40 9.83 9.84 9.85 4 Germany 12.05 8.81 5.73 5.66 5.83 6.13 6.26 6.43 6.07 5.91 5 Switzerland 9.15 5.04 4.11 4.61 4.40 4.07 4.11 4.29 3.65 3.47 6 Netherlands 11.52 8.26 5.58 6.03 6.15 6.07 6.17 6.20 6.01 5.95 7 France 15.28 14.61 12.44 12.33 12.42 12.42 12.31 12.16 12.22 12.36 8 Italy 19.98 19.99 18.95 17.50 17.42 17.51 17.71 17.75 17.75 17.40 9 Belgium 15.28 14.10 10.51 9.25 9.25 9.44 9.89 10.50 10.68 11.43 10 Japan 7.58 6.84 6.49 6.52 6.68 6.52 6.35 6.45 6.35 6.34 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 1984 CCoouunnttrryy//ccuurrrreennccyy 11998811 11998822 11998833 Sept. Oct. Nov. Dec. Jan. Feb. 1 Argentina/peso n.a. 20985.00 8.59 11.22 11.65 11.65 16.73 24.38 27.15 7, Australia/dollar1 114.95 101.65 90.14 88.77 91.37 91.59 90.04 90.60 93.48 3 Austria/schilling 15.948 17.060 17.968 18.754 18.305 18.900 19.383 19.815 19.028 4 Belgium/franc 37.194 45.780 51.121 53.841 53.034 54.538 55.939 57.354 55.279 5 Brazil/cruzeiro 92.374 179.22 573.27 701.38 784.35 870.21 943.43 1022.81 1131.37 6 Canada/dollar 1.1990 1.2344 1.2325 1.2326 1.2320 1.2367 1.2469 1.2484 1.2480 7 Chile/peso n.a. 51.118 79.350 81.767 83.710 85.600 86.557 88.355 88.595 8 China, P.R./yuan 1.7031 1.8978 1.9809 1.9867 1.9664 1.9940 1.9920 2.0490 2.0628 9 Colombia/peso n.a. 64.071 78.563 82.494 84.196 85.938 87.173 89.703 91.244 10 Denmark/krone 7.1350 8.3443 9.1483 9.5926 9.4172 9.6791 9.9530 10.1793 9.8549 11 Finland/markka 4.3128 4.8086 5.5636 5.7057 5.6390 5.7468 5.8515 5.9385 5.7892 1? France/franc 5.4396 6.5793 7.6203 8.0598 7.9526 8.1646 8.3839 8.5948 8.3051 13 Germany/deutsche mark 2.2631 2.428 2.5539 2.6679 2.6032 2.6846 2.7500 2.8110 2.6984 14 Greece/drachma n.a. 66.872 87.895 92.837 92.968 96.229 98.815 102.601 101.80 15 Hong Kong/dollar 5.5678 6.0697 7.2569 8.0079 8.0947 7.8120 7.8044 7.7968 7.7883 16 India/rupee 8.6807 9.4846 10.1040 10.200 10.229 10.378 10.4895 10.7152 10.744 17 Indonesia/rupiah n.a. 660.43 911.31 986.24 984.12 988.84 994.62 996.43 995.03 18 Ireland/pound1 161.32 142.05 124.81 117.41 119.15 115.85 112.91 110.20 114.21 19 Israel/shekel n.a. 24.407 55.865 60.059 77.808 89.344 100.599 116.728 130.21 20 Italy/lira 1138.60 1354.00 1519.30 1602.62 1582.81 1625.79 1666.88 1706.63 1666.39 21 Japan/yen 220.63 249.06 237.55 242.35 232.89 235.03 234.46 233.80 233.60 22 Malaysia/ringgit 2.3048 2.3395 2.3204 2.3506 2.3451 2.3450 2.3407 2.3411 2.3363 23 Mexico/peso 24.547 72.990 155.01 152.20 157.18 162.36 164.84 166.33 168.49 24 Netherlands/guilder 2.4998 2.6719 2.8543 2.9844 2.9206 3.0078 3.0856 3.1602 3.0455 75 New Zealand/dollar1 86.848 75.101 66.790 65.316 66.162 65.854 65.120 64.860 65.810 26 Norway/krone 5.7430 6.4567 7.3012 7.4271 7.3244 7.4696 7.7237 7.8763 7.6937 77 Peru/sol n.a. 694.59 1610.20 1995.33 2074.82 2131.13 2213.73 2320.20 2409.77 28 Philippines/peso 7.8113 8.5324 11.0940 11.050 13.750 14.050 14.050 14.050 14.050 29 Portugal/escudo 61.739 80.101 111.610 124.41 124.41 127.82 131.91 136.29 135.01 30 Singapore/dollar 2.1053 2.1406 2.1136 2.1417 2.1350 2.1334 2.1317 2.1309 2.1279 31 South Africa/rand1 114.77 92.297 89.85 89.86 88.82 84.23 82.15 79.54 81.31 32 South Korea/won n.a. 731.93 776.04 790.83 791.37 796.32 799.23 800.33 799.06 33 Spain/peseta 92.396 110.09 143.500 152.022 151.30 154.66 158.01 159.832 154.20 34 Sri Lanka/rupee 18.967 20.756 23.510 24.397 24.410 24.572 24.767 25.181 25.270 35 Sweden/krona 5.0659 6.2838 7.6717 7.8773 7.7844 7.9201 8.0608 8.1782 7.9976 36 Switzerland/franc 1.9674 2.0327 2.1006 2.1623 2.1122 2.1701 2.1983 2.2380 2.2050 37 Taiwan/Dollar n.a. n.a. n.a. n.a. 39.420 38.780 39.613 40.202 40.236 38 Thailand/baht 21.731 23.014 22.991 22.990 22.990 22.990 22.992 23.006 23.000 39 United Kingdom/pound1 202.43 174.80 151.59 149.86 149.69 147.66 143.38 140.76 144.17 40 Venezuela/bolivar 4.2781 4.2981 10.6840 13.833 13.088 12.782 12.834 13.021 13.023 MEMO United States/dollar2 102.94 116.57 125.34 129.74 127.50 130.26 132.84 135.07 131.71 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

67 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 SMSAs Standard metropolitan statistical areas when 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, 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 commercial banks, September 30, 1983 March 1984 A68 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 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1983 March 1984 A74 Special tables begin on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • March 1984 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; September 30, 1983 Millions of dollars Banks with foreign offices2 BBaannkkss wwiitthhoouutt Insured ffoorreeiiggnn Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ooffffiicceess 1 Total assets 1,813,016 1,293,822 374,058 980,256 518,361 2 Cash and due from depository institutions 285,613 225,797 117,311 108,486 59,683 3 Currency and coin (U.S. and foreign) 13,050 7,739 246 7,492 5,295 4 5 B B a a l l a a n n c c e e s s w w i i t t h h F ot e h d e e r r a c l e n R t e ra s l e r b v a e n k B s a nks 1 3 8 , , 9 9 8 2 3 4 1 3 2 , , 9 9 8 7 3 7 3,6 1 2 8 7 2 12,7 3 9 5 5 6 5,9 (4 3 ) 1 6 Demand balances with commercial banks in United States 19,421 7,041 203 6,839 12,378 7 All other balances with depository institutions in United States and with banks in foreign countries 157,492 135,916 111,766 24,150 21,517 8 Time and savings balances with commercial banks in United States 24,596 16,117 9,917 6,199 8,479 9 Balances with other depository institutions in United States 1,278 936 769 167 341 1 1 1 1 0 2 Ba O F la o t n h re c e i e r g s n b w a b n i r t k h a s n b c in a h n e f k s o s r o e i f i n g o n f t o h c r e o e r u i g n U n t . r S c ie o . s u b n a t n r k ie s s 131, ( ( 6 4 4 1 ) ) 8 1 1 0 1 1 0 8 8 , , , 0 8 8 5 6 0 7 3 7 1 8 0 1 6 1 4 , , , 8 2 0 1 6 8 9 1 0 1 1 4 3 7 , , , 5 2 7 4 3 8 6 7 3 12, ( ( 6 4 4 9 ) ) 6 13 Cash items in process of collection 72,743 58,140 1,286 56,854 14,562 14 Total securities, loans, and lease financing receivables 1,388,869 952,517 207,390 745,127 435,694 15 Total securities, book value 290,853 152,679 12,519 140,160 137,899 16 U.S. Treasury 102,757 46,948 120 46,828 55,691 17 Obligations of other U.S. government agencies and corporations 41,122 16,376 21 16,355 24,703 18 Obligations of states and political subdivisions in United States 110,775 58,937 579 58,358 51,742 19 All other securities 36,198 30,418 11,798 18,619 5,764 20 Other bonds, notes, and debentures 15,646 11,105 8,575 2,529 4,525 21 Federal Reserve and corporate stock 2,269 1,541 184 1,357 728 22 Trading account securities 18,283 17,772 3,039 14,733 511 23 Federal funds sold and securities purchased under agreements to resell 68,923 40,783 643 40,139 28,015 24 Total loans, gross 1,039,038 760,957 193,475 567,482 277,799 25 LESS: Unearned income on loans 13,525 66,,779988 1,670 5,128 6,706 26 Allowance for possible loan loss 12,270 88,,888866 334 8,552 3,381 27 EQUALS: Loans, net 1,013,244 745,273 191,471 553,802 267,712 Total loans, gross, by category 2 2 3 3 3 3 3 3 3 3 3 8 9 0 1 2 3 4 5 6 7 8 Re C S S S al e e e o M c c c 1 n e u u u - s s u C F F C r r r t t t e e o r l e a H H o o t u d d d t i n e n 4 f A c A a v v b b - t b l - - i m f e e y y y o o i i a n n n n a i n m f r l t n t s s n y i a e i u u i o o s o a r l s r r y n n n m n i e e d d f a a d d l a e l l a r n l n m o a t d n r i a d n V l o d A p n e r - r o v g e p e s u l e i a o d r r p e t a i n m n e t s t i e e a n e l t d p roperties 246,0 ( ( ( ( ( ( ( ( ( ( 4 4 4 4 4 4 4 4 4 4 4 ) ) ) ) ) ) ) ) ) ) 7 147, ( ( ( 2 ( ( ( ( ( ( ( 4 4 4 4 4 4 4 4 4 4 1 ) ) ) ) ) ) ) ) ) ) 2 8, ( ( ( 4 ( ( ( ( ( ( ( 4 4 4 4 4 4 4 4 4 4 1 ) ) ) ) ) ) ) ) ) ) 3 1 7 6 6 3 2 3 1 4 7 7 2 4 4 8 8 1 , , , , , , , , , , 5 5 1 4 2 1 9 7 0 6 2 5 6 4 1 9 1 7 0 3 7 3 9 5 7 2 9 0 7 0 8 5 5 9 4 5 2 5 1 8 3 2 2 8 0 9 2 1 3 , , , , , , , , , , 7 5 5 8 1 6 7 7 5 9 1 2 3 2 6 3 4 6 6 1 4 0 8 6 0 9 0 8 4 7 8 4 5 39 Loans to financial institutions 101,609 93,845 32,391 61,454 7,763 40 REITs and mortgage companies in United States 5,023 4,442 62 4,381 578 4 4 4 3 1 2 Co O U m t . m h S e . e r r b c c r i o a a n m l c m b h a e e n s r k c a s ia n l i d n b a U a g n n e k i n s t c e i d e s S o ta f t f e o s reign banks 15, ( ( 5 4 4 6 ) ) 6 1 4 5 0 , , , 9 7 6 1 8 9 1 1 2 8 6 22 2 0 2 9 8 4 9 5 , , , 3 8 5 0 6 5 4 3 9 4,8 ( ( 4 4 7 ) ) 4 4 4 4 4 5 6 Ba F O n o k th r s e e i i r g n n f o b r r e a i n g c n h c e o s u o n f t r o ie th s er U.S. banks 48,9 ( ( 4 4 6 ) ) 6 4 4 8 7 , , 3 3 9 4 8 5 6 8 8 2 2 3 2 , , 0 7 2 0 1 8 0 6 4 2 2 5 4 , , 3 6 6 4 7 7 6 2 5 ( ( 6 4 4 2 ) ) 0 47 Finance companies in United States 10,302 9,822 408 9,414 480 48 Other financial institutions 21,752 20,542 8,092 12,450 1,210 49 Loans for purchasing or carrying securities 15,751 13,556 1,847 11,709 2,195 50 Brokers and dealers in securities 9,829 9,396 1,200 8,196 433 51 Other 5,921 4,159 647 3,513 1,762 52 Loans to finance agricultural production and other loans to farmers 14,057 7,768 820 6,948 6,289 5 5 5 3 4 5 Co U N m . o m S n . e -U r a c d . i S d al r . e a a s n d s d e d e r i s e n s d ( s d u e o e s m t s r i i ( a c d l i o le l m o ) a ic n i s l e) 448, ( 4 ( 4 4 4 ) ) 0 2 3 1 3 6 3 0 1 1 , , , 3 8 5 5 7 1 6 6 9 1 1 2 0 1 0 2 8 , , , 0 7 7 4 6 2 1 6 6 2 2 1 4 2 1 1 9 , , , 6 1 4 3 1 7 1 0 9 86,5 ( ( 4 4 2 ) ) 3 5 5 6 6 6 5 5 6 6 6 6 6 6 7 0 1 2 8 9 3 4 5 6 7 Lo I S a n i n s n P O C M s t g a a r t o O R C l O t R s e h l o e l b s d e e h m e t - t e i h i r h p t i s e l t n a n e e e i e a c i i g d n d r c r y n k l h e e t a i m s r v i ( r n o r t a e n c l a i d e t m o n t d a s h i l n s a a a d t l u u a e i t a m l n l r t a a s l r o s g l n l l p e e c o m s m e d n r v o a o t e f o o n a n r o p n l b c s s e l r v e t o u c i l r i l a a h o m l n e t t o n y u o s g e e s a n u d r n r c t s e ) s e r g p p e h o l c f a d a o o r o i i n e l r r d t d s d s h a , i t n o f d u a c s m a m e r i d h o l y o d , l e d a r , n n f d i a z m a o t t i i h o ly e n , r a p n e d r s o o t n h a e l r e p x e p r e s n o d n i a t l u r e e x s p enditures 156, ( 5 ( ( ( ( ( ( ( ( ( ( 4 4 4 4 4 4 4 4 9 4 4 4 ) ) ) ) ) ) ) ) ) ) ) 4 84,6 ( ( ( ( ( ( ( ( ( ( ( 4 4 4 4 4 3 4 4 4 4 4 4 ) ) ) ) ) 2 ) ) ) ) ) ) 6,6 ( ( ( ( ( ( ( ( ( ( ( 4 0 4 4 4 4 4 4 4 4 4 4 ) ) ) ) ) 2 ) ) ) ) ) ) 6 7 2 2 1 1 1 1 4 4 4 8 3 0 5 3 7 8 0 3 , , , , , , , , , , , , 1 2 1 1 0 9 2 1 2 4 0 9 1 3 0 3 7 9 6 6 9 2 0 2 2 5 4 0 3 3 6 0 7 9 2 6 7 5 2 1 1 1 1 1 1 4 3 3 8 5 1 0 2 7 2 0 , , , , , , , , , , , , 8 4 5 0 9 1 6 7 3 8 9 4 3 2 1 0 5 5 3 3 6 9 1 2 6 3 6 6 7 6 8 0 9 3 3 0 7 6 6 0 9 8 Al O L l o o th a th e n r e s r t l o o a fo n r s e ign government and official institutions 56,5 ( ( 4 4 4 ) ) 1 3 5 1 7 2 4 , , , 2 0 7 7 6 9 1 9 8 2 2 0 2 2 , , , 5 6 0 8 3 5 2 6 4 2 1 1 9 6 2 , , , 4 6 7 3 8 4 3 9 4 4,4 ( ( 4 4 6 ) ) 6 71 Lease financing receivables 15,849 13,782 2,757 11,025 2,067 72 Bank premises, furniture and fixtures, and other assets representing bank premises 27,096 16,835 1,748 15,087 10,230 73 Real estate owned other than bank premises 3,900 2,364 81 2,282 1,536 74 Intangible assets 1,292 797 0 0 495 75 All other assets 106,248 95,512 47,529 109,273 10,723 76 Investment in unconsolidated subsidiaries and associated companies 1,907 1,721 1,248 473 186 7 7 7 7 8 9 Cu U N st . o o S n m . - U a e d r . s S d ' . r e l a i s a d s b e d i e l r i e s t y s ( s d e o o e n m s a i ( c c d c i o l e e m p ) t ic a i n l c e) e s outstanding 61,6 ( ( 5 4 4 ) ) 5 6 4 1 1 3 7 , , , 2 9 2 3 9 4 5 4 1 12, ( ( 8 4 4 6 ) ) 0 48,3 ( ( 4 4 7 ) ) 6 4 ( ( 4 4 1 ) ) 9 80 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries ... (4) (4) 24,075 36,418 (4) 81 Other 42,686 32,556 9,346 24,007 10,118 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.20 Continued Banks with foreign offices2 BBaannkkss IItteemm IInnssuurreedd wwiitthhoouutt Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ff oo oo ff rr ff ee iicc iigg ee nn ss 82 Total liabilities and equity capital 1,813,016 1,293,822 (4) (4) 518,361 83 Total liabilities excluding subordinated debt 1,706,705 1,225,336 373,597 912,231 480,587 84 Total deposits 1,369,366 937,273 299,834 637,439 431,405 85 Individuals, partnerships, and corporations 1,096,455 706,503 162,125 544,378 389,295 86 U.S. government 2,568 1,664 282 1,382 902 87 States and political subdivisions in United States 52,979 24,649 825 23,824 28,309 88 All other 204,110 195,017 136,016 59,001 9,092 89 Foreign governments and official institutions 29,078 28,770 19,285 9,486 308 9 9 9 2 1 0 Co O U m t . m h S e . e r r b c c r i o a a n m l c m b h a e e n s r k c a s ia n l i d n b a U a g n n e k n i s t c e i d i e n s S U o ta n f t i f e t o s e r d e i S gn ta t b e a s n ks 72,4 ( ( 4 411 ) ) 6 5 4 6 7 , , , 0 1 8 1 1 9 1 9 2 2 3 3 7 1 , , , 7 4 1 4 2 6 1 8 8 3 3 2 0 2 , , , 6 1 8 9 5 4 1 2 3 8,3 ( ( 4 498 ) ) 9 9 9 3 5 4 Ba O F n o k th r s e e i r i g n n b f a o b n r r k e a s i n g c i n n h c e f o s o u r o e n f i t g r o n i t e h s c e o r u n U t . r S ie . s b anks 102, ( (6 4 421 ) ) 1 8 0 1 5 2 6 , , , 5 2 6 3 6 7 6 0 6 7 8 1 1 5 4 , , , 3 5 2 2 6 4 2 3 1 1 1 2 6 4 , , , 4 6 2 3 7 3 5 2 7 ( (3 4 48 ) )6 96 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,254 9,440 586 8,854 3,808 97 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 170,259 137,561 368 137,193 32,608 98 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed 99 Int m er o e n s e t- y b earing demand notes (note balances) issued to U.S. Treasury 5 1 9 9 , , 2 2 0 8 6 8 5 1 1 4 , , 4 9 4 8 0 2 16,(7 4 77) 3 1 4 4 , , 6 9 6 8 3 2 7 4 , , 7 3 6 0 5 6 100 Other liabilities for borrowed money 39,917 36,458 16,777 19,681 3,459 101 Mortgage indebtedness and liability for capitalized leases 2,281 1,451 10 1,441 830 107 All other liabilities 105,594 97,610 56,608 101,494 7,979 1 1 0 0 4 3 N A e c t c e d p u t e a n t c o e f s o e re x i e g c n u t b e r d a n a c n h d e s o , u f t o s r ta e n ig d n i n s g u bsidiaries, Edge and agreement subsidiaries 61,(7495) 61,(3474) 3 1 6 0 , , 4 5 1 3 8 6 2 5 4 0 , , 0 8 7 3 5 9 (4421) 105 Other 43,799 36,236 9,655 26,581 7,558 106 Subordinated notes and debentures 6,878 5,315 461 4,854 1,563 1 1 1 0 0 0 9 7 8 To P C ta r o l e m f e e m q r u r o e i n t d y s s c t t o a o c p c k k it al5 9 1 9 8 , , 4 0 5 3 8 8 3 1 2 6 1 3 1 , , 1 4 6 7 5 8 1 3 8 ( ( ( ( 4 4 4 4 ) ) ) ) ( ( ( ( 4 4 4 4 ) ) ) ) 3 6 6 , ,2 3 1 1 9 2 2 4 8 1 1 1 1 1 1 1 1 3 1 2 0 Un U R d e n iv s d e i i d r v v e id d e e f d p o r r o p f c r i o o ts f n i t t a i s n n d g e r n e c s i e e r s v e a n f d o r o c th o e n r t in ca g p e i n t c a i l e r s e s a e n r d v e o s t her capital reserves 4 4 3 8 7 2 , , ,6 1 3 7 2 5 5 9 1 0 9 1 3 3 1 1 1 9 , , , 4 7 3 3 0 2 0 2 2 5 5 3 ( ( ( 4 4 4 ) ) ) ( ( ( 4 4 4 ) ) ) 1 1 1 3 6 5 , , , 4 2 4 9 6 8 0 3 8 8 1 3 MEMO Deposits in domestic offices 114 Total demand 284,713 187,704 0 187,704 96,822 115 Total savings 323,014 175,216 0 175,216 147,454 116 Total time 461,806 274,519 0 274,519 187,130 117 Time deposits of $100,000 or more-. 239,755 173,682 0 173,682 66,060 118 Certificates of deposit (CDs) in denominations of $100,000 or more 194,522 133,082 0 133,082 61,427 119 Other 45,233 40,599 0 40,599 4,633 120 Super NOW accounts 14,938 6,763 0 6,763 8,175 121 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 45,080 22,768 0 22,768 22,222 122 All other savings deposits that are subject to a federal regulatory interest rate ceiling 94,969 47,271 0 47,271 47,617 123 Money market time deposits (a) in minimum denomination of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denomination of $2,500 but less than $100,000 with original maturities of 91 days 117,473 51,960 0 51,960 65,464 124 All savers certificates 2,082 1,056 0 1,056 1,025 125 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 20,312 10,295 0 10,295 10,010 126 Demand deposits adjusted6 183,317 108,213 0 108,213 74,960 1 1 1 2 2 2 7 8 9 Sta N U n o . d S n b . - y U a d l . e S d t . r t e e a r s d s s d e o e r f e s s c ( s r d e e o e d m s i t, i ( c d t i o o le m t ) a i l c , i a le n ) d guarantees issued by the reporting bank's foreign offices. 110, ( (1 4 402 ) ) 1 2 7 0 6 6 3 , , , 4 9 4 7 8 5 2 6 8 21, ( (0 4 450 ) ) 82, ( (4 4 408 ) ) 6,6 ( ( 4 438 ) ) 130 Standby letters of credit conveyed to others through participations (included in total standby 131 Hold l i e n t g te s rs o f o c f o c m re m di e t r ) c ial paper included in total gross loans 9,9(408) 9,5(491) (8445) 8,7 3 4 4 6 0 1,0 3 7 1 2 7 Average for 30 calendar days (or calendar month) ending with report date 132 Total assets 1,787,755 1,274,224 300,733 973,490 512,722 133 Cash and due from depository institutions 272,606 217,672 113,715 103,957 54,808 134 Federal funds sold and securities purchased under agreements to resell 68,774 39,439 892 38,547 29,229 135 Total loans 1,026,351 756,798 197,877 558,921 269,284 1 13 3 6 7 T T i o m ta e l C de D p s o s in it s d enominations of $100,000 or more in domestic offices 1,3 1 4 9 6 6 , , 5 2 1 3 8 0 918,1(481) 291,(4408) 6 1 2 3 6 5 , , 7 3 7 2 3 5 42 6 7 0 , , 6 8 5 9 7 3 138 Federal funds purchased and securities sold under agreements to repurchase 173,082 140,587 7,493 133,094 32,423 139 Other liabilities for borrowed money 39,807 36,678 16,348 20,330 3,130 140 Number of banks 1,843 196 196 196 1,646 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • March 1984 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over l Consolidated Report of Condition; September 30, 1983 Millions of dollars Member banks NNoonn-- IItteemm mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,499,451 1,259,888 961,176 298,712 239,563 2 Cash and due from depository institutions 168,302 143,328 106,852 36,476 24,974 3 Currency and coin (U.S. and foreign) 12,803 10,854 8,678 2,177 1,949 4 Balances with Federal Reserve Banks 18,742 16,813 12,500 4,313 1,929 5 Balances with other central banks 356 355 322 33 1 6 Demand balances with commercial banks in United States 19,218 12,524 10,233 2,291 6,694 7 All other balances with depository institutions in United States and with banks in foreign countries 45,726 35,450 28,023 7,427 10,275 8 Time and savings balances with commercial banks in United States 14,679 10,369 8,499 1,870 4,309 9 Balances with other depository institutions in United States 509 243 219 24 266 10 Balances with banks in foreign countries 30,538 24,838 19,305 5,533 5,700 11 Cash items in process of collection 71,457 67,330 47,096 20,234 4,126 12 Total securities, loans, and lease financing receivables 1,181,479 981,253 753,587 227,666 200,226 13 Total securities, book value 278,334 216,855 164,605 52,250 61,479 14 U.S. Treasury 102,637 78,560 60,296 18,263 24,077 15 Obligations of other U.S. government agencies and corporations 41,101 29,346 24,517 4,828 11,755 16 Obligations of states and political subdivisions in United States 110,196 87,713 65,955 21,758 22,484 17 All other securities 24,400 21,237 13,836 7,401 3,163 18 Other bonds, notes, and debentures 7,071 4,507 3,419 1,089 2,564 19 Federal Reserve and corporate stock 2,085 1,650 1,269 381 435 20 Trading account securities 15,244 15,080 9,148 5,932 164 21 Federal funds sold and securities purchased under agreements to resell 68,280 58,092 45,199 12,893 10,187 22 Total loans, gross 845,563 714,054 549,776 164,278 131,509 23 LESS: Unearned income on loans 11,855 9,220 6,990 2,231 2,634 24 Allowance for possible loan loss 11,936 10,426 7,956 2,470 1,510 25 EQUALS: Loans, net 821,773 694,409 534,831 159,578 127,364 Total loans, gross, by category 26 Real estate loans 237,634 189,921 158,182 31,740 47,713 27 Construction and land development 51,486 43,411 34,594 8,817 8,076 28 Secured by farmland 2,730 1,969 1,771 199 760 29 Secured by residential properties 125,151 100,158 84,757 15,401 24,993 30 1- to 4-family 117,870 94,424 80,114 14,310 23,446 31 FHA-insured or VA-guaranteed 6,729 5,920 4,926 994 809 32 Conventional 111,141 88,504 75,188 13,316 22,637 33 Multifamily 7,281 5,734 4,643 1,091 1,547. 34 FHA-insured 340 247 153 93 93 35 Conventional 6,941 5,488 4,490 998 1,454 36 Secured by nonfarm nonresidential properties 58,266 44,383 37,060 7,323 13,883 37 Loans to financial institutions 69,218 64,014 40,520 23,493 5,205 38 REITs and mortgage companies in United States 4,961 4,697 3,550 1,147 264 39 Commercial banks in United States 14,737 11,072 8,003 3,070 3,664 40 Banks in foreign countries 25,966 25,345 14,234 11,111 621 41 Finance companies in United States 9,894 9,653 6,281 3,372 241 42 Other financial institutions 13,660 13,247 8,453 4,795 413 43 Loans for purchasing or carrying securities 13,904 13,233 7,518 5,715 671 44 Brokers and dealers in securities 8,629 8,431 3,707 4,724 199 45 Other 5,274 4,802 3,811 991 472 46 Loans to finance agricultural production and other loans to farmers 13,237 11,548 10,527 1,021 1,689 47 Commercial and industrial loans 327,673 282,517 212,160 70,357 45,156 48 Loans to individuals for household, family, and other personal expenditures 149,992 121,371 100,411 20,960 28,621 49 Installment loans 123,142 99,645 83,264 16,381 23,497 50 Passenger automobiles 43,683 33,101 27,500 5,602 10,582 51 Credit cards and related plans 37,636 34,568 28,915 5,653 3,067 52 Retail (charge account) credit card 31,631 29,310 24,721 4,589 2,321 53 Check and revolving <y$dit 6,004 5,258 4,194 1,064 746 54 Mobile homes 6,618 5,305 4,911 394 1,312 55 Other installment loans 35,206 26,670 21,938 4,733 8,536 56 Other retail consumer goods 7,557 6,060 5,056 1,004 1,498 57 Residential property repair and modernization 7,222 5,118 4,216 902 2,103 58 Other installment loans for household, family, and other personal expenditures 20,427 15,493 12,666 2,827 4,935 59 Single-payment loans 26,850 21,726 17,147 4,579 5,124 60 All other loans 33,905 31,450 20,459 10,991 2,455 61 Lease financing receivables 13,092 11,897 8,953 2,944 1,195 62 Bank premises, furniture and fixtures, and other assets representing bank premises 25,348 20,583 16,461 4,123 4,765 63 Real estate owned other than bank premises 3,818 3,038 2,467 571 781 64 Intangible assets 495 275 257 18 220 65 All other assets 120,009 111,411 81,552 29,859 8,598 66 Investment in unconsolidated subsidiaries and associated companies 659 505 366 139 154 67 Customers' liability on acceptances outstanding 48,795 48,036 34,665 13,370 760 68 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 36,418 33,511 25,762 7,748 2,907 69 Other 34,137 29,360 20,759 8,601 4,777 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 70 Total liabilities and equity capital8 1,499,451 1,259,888 961,176 298,712 239,563 71 Total liabilities excluding subordinated debt 1,393,601 1,171,313 894,417 276,896 222,287 72 Total deposits 1,069,532 866,634 678,146 188,488 202,898 73 Individuals, partnerships, and corporations 934,330 750,902 596,803 154,099 183,428 74 2,286 1,928 1,578 350 358 75 States and political subdivisions in United States 52,155 38,908 31,985 6,922 13,247 76 All other 68,094 64,179 41,205 22,974 3,915 77 Foreign governments and official institutions 9,793 9,427 4,590 4,837 367 78 Commercial banks in United States 41,242 38,479 28,025 10,454 2,763 79 Banks in foreign countries 17,058 16,273 8,590 7,683 786 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,668 10,718 6,574 4,144 1,950 81 284,713 241,815 179,754 62,060 42,898 82 Mutual savings banks 1,047 895 557 338 153 83 Other individuals, partnerships, and corporations 223,647 186,261 141,581 44,680 37,386 84 1,670 1,394 1,091 303 277 85 States and political subdivisions in United States 9,693 8,007 6,147 1,860 1,686 86 All other 35,988 34,541 23,805 10,736 1,446 87 Foreign governments and official institutions 1,028 986 623 363 42 88 Commercial banks in United States 28,269 27,035 20,496 6,540 1,234 89 Banks in foreign countries 6,691 6,520 2,687 3,834 170 90 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,668 10,718 6,574 4,144 1,950 91 461,806 370,085 291,467 78,618 91,721 92 Mutual savings banks 147 118 67 51 29 93 Other individuals, partnerships, and corporations 390,966 312,297 250,388 61,908 78,670 94 539 469 425 43 70 95 States and political subdivisions in United States 38,113 27,626 23,244 4,382 10,487 96 All other 32,041 29,576 17,342 12,234 2,464 97 Foreign governments and official institutions 8,723 8,400 3,927 4,472 323 98 12,952 11,426 7,514 3,912 1,526 99 10,366 9,751 5,901 3,849 615 100 323,014 254,734 206,925 47,809 68,280 101 Mutual savings banks 1 1 1 * * 102 Other individuals, partnerships, and corporations 318,521 251,331 204,209 47,122 67,190 103 Individuals and nonprofit organizations 284,313 225,575 182,944 42,631 58,738 104 Corporations and other profit organizations 34,209 25,756 21,265 4,491 8,452 105 77 65 62 3 11 106 States and political subdivisions in United States 4,349 3,275 2,595 680 1,074 107 All other 66 61 58 3 4 108 Foreign governments and official institutions 42 41 40 1 1 109 Commercial banks in United States 22 18 16 2 3 110 2 2 2 111 Federal funds purchased and securities sold under agreements to repurchase 169,891 158,951 115,771 43,181 10,939 112 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed 42,429 39,444 25,340 14,105 2,984 113 Interest-bearing demand notes (note balances) issued to U.S. Treasury 19,288 17,610 12,875 4,735 1,679 114 Other liabilities for borrowed money 23,140 21,835 12,465 9,370 1,306 115 Mortgage indebtedness and liability for capitalized leases 2,271 1,843 1,545 298 428 116 109,479 104,441 73,616 30,825 5,038 117 Acceptances executed and outstanding 51,259 50,500 37,086 13,413 760 118 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 24,075 23,252 14,982 8,269 823 119 34,144 30,690 21,548 9,142 3,455 120 Subordinated notes and debentures 6,417 5,415 3,394 2,021 1,002 121 99,433 83,160 63,366 19,794 16,274 MEMO 122 Time deposits of $100,000 or more 239,755 200,092 150,096 49,997 39,662 123 Certificates of deposit (CDs) in denominations of $100,000 or more 194,522 158,337 123,293 35,044 36,185 P4 45,233 41,755 26,803 14,953 3,478 125 14,938 11,496 9,843 1,653 3,442 126 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 45,080 35,128 29,238 5,890 9,951 127 All other savings deposits that are subject to a federal regulatory interest rate ceiling 94,969 74,306 59,663 14,643 20,662 12.8 Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but less than $100,000 with original maturities of 91 days 117,473 89,816 75,454 14,363 27,656 179 2,082 1,611 1,302 308 471 130 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 20,312 15,880 13,082 2,799 4,432 131 183,317 146,056 111,072 31,976 37,261 132 89,052 85,495 53,518 21,976 3,558 133 Conveyed to others through participation (included in standby letters of credit) 9,063 8,954 5,486 3,468 109 134 Holdings of commercial paper included in total gross loans 1,412 960 677 283 452 Average for 30 calendar days (or calendar month) ending with report date 135 1,487,022 1,250,728 950,926 299,802 236,294 136 Cash and due from depository institutions 158,892 135,964 102,472 33,492 22,928 137 Federal funds sold and securities purchased under agreements to resell 67,882 57,069 44,415 12,654 10,813 138 828,474 700,125 536,614 163,511 128,348 139 1,055,110 854,083 670,972 183,111 201,027 140 Time CDs in denominations of $100,000 or more in domestic offices 196,230 159,982 124,847 35,135 36,248 141 Federal funds purchased and securities sold under agreements to repurchase 165,590 154,919 109,548 45,371 10,671 142 Other liabilities for borrowed money 23,460 22,206 12,701 9,506 1,254 143 1,843 1,123 948 175 720 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • March 1984 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities'" Consolidated Report of Condition; September 30, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,935,174 1,445,708 1,116,314 329,394 489,466 2 Cash and due from depository institutions 204,178 160,060 120,937 39,123 44,117 3 Currency and coin (U.S. and foreign) 17,420 12,919 10,404 2,514 4,501 4 Balances with Federal Reserve Banks 20,866 18,357 13,773 4,584 2,510 5 Balances with other central banks 356 355 322 33 1 6 Demand balances with commercial banks in United States 34,270 18,023 15,016 3,007 16,247 7 All other balances with depository institutions in United States and with banks in foreign 56,791 41,222 32,797 8,425 15,568 8 Cash items in process of collection 74,474 69,184 48,625 20,559 5,290 9 Total securities, loans, and lease financing receivables 1,561,929 1,142,268 887,870 254,398 419,661 10 Total securities, book value 415,379 274,174 212,375 61,799 141,205 11 U.S. Treasury 158,207 101,669 79,228 22,441 56,538 12 Obligations of other U.S. government agencies and corporations 77,752 44,343 37,043 7,301 33,409 13 Obligations of states and political subdivisions in United States 152,693 105,795 81,308 24,486 46,899 14 All other securities 26,727 22,367 14,796 7,572 4,360 15 Federal funds sold and securities purchased under agreements to resell 92,336 69,405 54,728 14,677 22,931 16 Total loans, gross 1,072,488 809,745 629,510 180,235 262,743 17 LESS: Unearned income on loans 17,545 11,687 9,030 2,657 5,858 18 Allowance for possible loan loss 14,283 11,475 8,852 2,623 2,809 19 EQUALS: Loans, net 1,040,659 786,584 611,628 174,955 254,076 Total loans, gross, by category 20 Real estate loans 318,300 223,404 185,889 37,515 94,895 21 Construction and land development 58,217 46,149 37,049 9,100 12,069 22 Secured by farmland 9,065 4,092 3,455 636 4,973 23 Secured by residential properties 172,863 120,693 101,538 19,155 52,170 24 l-to4-family 164,016 114,357 96,381 17,976 49,659 25 Multifamily 8,847 6,335 5,157 1,179 2,511 26 Secured by nonfarm nonresidential properties 78,154 52,471 43,847 8,624 25,683 27 Loans to financial institutions 72,683 65,792 41,986 23,806 6,890 28 Loans for purchasing or carrying securities 14,541 13,507 7,757 5,750 1,034 29 Loans to finance agricultural production and other loans to farmers 39,103 21,240 18,458 2,782 17,863 30 Commercial and industrial loans 385,281 307,363 233,177 74,186 77,918 31 Loans to individuals for household, family, and other personal expenditures 205,104 145,485 120,518 24,967 59,619 32 Installment loans 163,535 117,598 98,192 19,406 45,937 33 Passenger automobiles 64,252 41,960 34,899 7,061 22,292 34 Credit cards and related plans 39,838 36,134 30,163 5,971 3,704 35 Mobile homes 9,632 6,642 6,008 633 2,991 36 All other installment loans for household, family, and other personal expenditures 49,813 32,863 27,123 5,741 16,950 37 Single-payment loans 41,569 27,887 22,326 5,562 13,682 38 All other loans 37,476 32,954 21,725 11,229 4,523 39 Lease financing receivables 13,555 12,106 9,139 2,966 1,449 40 Bank premises, furniture and fixtures, and other assets representing bank premises 33,930 24,247 19,555 4,692 9,683 41 Real estate owned other than bank premises 5,203 3,549 2,878 671 1,654 42 Intangible assets 595 331 311 20 264 43 All other assets 129,339 115,252 84,763 30,489 14,087 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 44 Total liabilities and equity capital8 1,935,174 1,445,708 1,116,314 329,394 489,466 45 Total liabilities excluding subordinated debt 1,790,890 1,340,760 1,035,998 304,762 450,130 46 Total deposits 1,452,547 1,028,927 813,955 214,972 423,621 47 Individuals, partnerships, and corporations 1,283,872 899,518 721,203 178,314 384,354 48 U.S. government 3,049 2,259 1,858 401 790 49 States and political subdivisions in United States 80,622 50,208 41,501 8,707 30,414 50 All other 69,335 64,899 41,694 23,205 4,436 51 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,669 12,043 7,698 4,345 3,626 52 Demand deposits 355,101 272,293 205,589 66,704 82,808 53 Individuals, partnerships, and corporations 286,916 213,963 164,964 48,999 72,953 54 U.S. government 2,265 1,653 1,317 336 612 55 States and political subdivisions in United States 13,619 9,638 7,531 2,106 3,982 56 All other 36,631 34,996 24,080 10,917 1,635 57 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,669 12,043 7,698 4,345 3,626 58 Time deposits 648,303 446,997 355,547 91,450 201,306 59 Other individuals, partnerships, and corporations 557,417 381,450 307,896 73,554 175,967 60 U.S. government 674 523 463 60 151 61 States and political subdivisions in United States 57,631 35,206 29,652 5,554 22,426 62 All other 32,580 29,819 17,537 12,282 2,761 63 Savings deposits 449,144 309,636 252,819 56,818 139,507 64 Corporations and other profit organizations 41,026 28,565 23,575 4,990 12,462 65 Other individuals, partnerships, and corporations 398,512 275,540 224,770 50,771 122,972 66 U.S. government 109 83 78 4 26 67 States and political subdivisions in United States 9,371 5,365 4,318 1,047 4,007 68 All other 125 84 78 6 40 69 Federal funds purchased and securities sold under agreements to repurchase 175,231 161,935 118,144 43,791 13,296 70 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 45,041 40,979 26,536 14,444 4,061 71 Mortgage indebtedness and liability for capitalized leases 2,670 1,991 1,665 326 679 72 All other liabilities 115,401 106,928 75,699 31,229 8,473 73 Subordinated notes and debentures 6,888 5,618 3,574 2,044 1,269 74 Total equity capital8 137,397 99,330 76,742 22,588 38,067 MEMO 75 Time deposits of $100,000 or more 283,033 218,417 165,681 52,736 64,616 76 Certificates of deposit (CDs) in denominations of $100,000 or more 235,039 175,504 137,864 37,640 59,535 77 Other 47,994 42,913 27,817 15,095 5,081 78 Super NOW accounts 26,526 16,252 13,783 2,469 10,275 79 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).. 66,701 44,469 37,134 7,335 22,232 80 All other savings deposits that are subject to a federal regulatory interest rate ceiling 135,495 92,052 74,222 17,830 43,443 81 Money market time deposits (a) in minimum denominations of $2,500 but less than $100,000 with original maturities of 26 weeks, and (b) in minimum denominations of $2,500 but less than $100,000 with original maturities of 91 days 196,255 121,992 102,288 19,704 74,263 82 All savers certificates 3,012 2,001 1,627 373 1,012 83 Total Individual Retirement Accounts (IRA) and Keogh plan accounts 28,232 19,155 15,819 3,335 9,078 84 Demand deposits adjusted6 249,455 173,968 134,879 39,088 75,488 85 Total standby letters of credit 91,134 86,414 54,283 32,131 4,720 Average for 30 calendar days (or calendar month) ending with report date 86 Total deposits 1,436,685 1,015,358 805,823 209,534 421,328 87 Number of banks 14,464 5,777 4,733 1,044 8,687 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 3. Foreign offices include branches in foreign countries and in U.S. territories commercial banks. Commercial banks with assets less than $100 million and with and possessions, subsidiaries in foreign countries, and all oflices of Edge Act and domestic offices only were given the option to complete either the abbreviated or agreement corporations wherever located. the standard set of reports. Banks with foreign offices began reporting in greater 4. This item is unavailable for all or some of the banks because of the lesser detail on a consolidated domestic and foreign basis. These tables reflect the detail available from banks without foreign offices, the inapplicability of certain varying levels of reporting detail. items to banks that have only domestic offices, and the absence of detail on a fully Beginning Dec. 3, 1981, depository institutions may establish international consolidated basis for banks with foreign offices. banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks 5. Equity capital is not allocated between the domestic and foreign offices of is reflected in the appropriate asset and liability line items in the domestic office banks with foreign offices. portion of the tables. Activity of IBFs established by Edge Act and Agreement 6. Demand deposits adjusted equal demand deposits other than domestic subsidiaries of U.S. commercial banks is reflected in the appropriate asset and commercial interbank and U.S. government less cash items in process of liability line items in the foreign office portion of the tables. When there is a collection. column for fully consolidated foreign and domestic data, activity of IBFs is 7. Domestic offices exclude branches in foreign countries and in U.S. terrireflected in the appropriate asset and liability line items in that portion of the tories and possessions, subsidiaries in foreign countries, and all offices of Edge tables. Act and Agreement corporations wherever located. 2. All transactions between domestic and foreign offices of a bank are reported 8. This item contains the capital accounts of U.S. banks that have no Edge or in "Net due from" and "Net due to" (lines 80 and 104). All other lines represent foreign operations and reflects the difference between domestic office assets and transactions with parties other than the domestic and foreign offices of each bank. liabilities of U.S. banks with Edge or foreign operations excluding the capital Since these intraoffice transactions are erased by consolidation, total assets and accounts of their Edge or foreign subsidiaries. liabilities are the sum of all except intraoffice balances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • March 1984 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19831 Millions of dollars All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 1 Total assets5 224,332 170,044 54,288 149,547 9,146 42,174 10,017 7,868 5,580 2 Cash and due from depository institutions 41,853 38,170 3,683 35,656 450 3,375 1,710 328 334 3 Currency and coin (U.S. and foreign) 22 19 3 15 1 2 2 1 1 4 Balances with Federal Reserve Banks 897 822 75 651 20 59 31 123 14 5 Balances with other central banks 20 16 4 16 0 3 0 0 0 6 Demand balances with commercial banks in United States 1,450 1,188 262 1,109 48 199 34 21 38 7 All other balances with depository institutions in United States and with banks in foreign countries 39,286 35,953 3,333 33,702 379 3,108 1,641 179 278 8 Time and savings balances with commercial banks in United States 19,321 17,318 2,003 1155,,994433 285 11,,886655 %9 108 151 9 Balances with other depository institutions in United States 133 126 6 126 1 5 0 0 0 10 Balances with banks in foreign countries 19,832 18,509 1,324 17,633 92 1,238 672 71 127 11 Foreign branches of U.S. banks 1,449 1,414 35 1,350 5 24 53 0 17 12 Other banks in foreign countries 18,383 17,095 1,289 16,282 88 1,214 618 71 110 13 Cash items in process of collection 178 172 6 164 2 3 4 3 2 14 Total securities, loans, and lease financing receivables .... 138,820 104,302 34,518 90,475 5,986 26,111 7,688 4,170 4,390 15 Total securities, book value 8,054 7,314 740 7,002 374 434 193 36 15 16 U.S. Treasury 4,945 4,605 340 4,4% 303 64 52 28 2 17 Obligations of other U.S. government agencies and corporations 483 464 20 460 2 16 0 2 4 18 Obligations of states and political subdivisions in United States 80 71 10 46 0 1 23 1 9 19 Other bonds, notes, debentures, and corporate stock .. 2,545 2,174 370 1,999 69 354 119 4 0 20 Federal funds sold and securities purchased under agreements to resell 6,230 5,157 1,073 4,831 593 440 186 123 58 By holder 21 Commercial banks in United States 5,425 4,565 860 4,277 388 440 148 123 50 22 Others 805 592 213 553 205 0 38 0 8 By type 23 One-day maturity or continuing contract 6,214 5,141 1,073 4,822 593 432 186 123 58 24 Securities purchased under agreements to resell 165 150 15 46 0 0 12 93 14 25 Other 6,049 4,991 1,059 4,777 593 432 174 30 44 26 Other securities purchased under agreements to resell 16 16 0 8 0 8 0 0 0 27 Total loans, gross 130,913 97,094 33,819 83,568 5,616 25,715 7,501 4,137 4,375 28 LESS: Unearned income on loans 147 106 41 % 4 38 7 3 0 29 EQUALS: Loans, net 130,766 96,988 33,777 83,472 5,612 25,677 7,495 4,134 4,374 Total loans, gross, by category 30 Real estate loans 4,807 2,046 2,761 1,306 18 2,024 133 453 873 31 Loans to financial institutions 51,286 39,136 12,150 35,262 1,407 10,406 3,013 332 865 32 Commercial banks in United States 28,620 21,751 6,869 19,750 397 6,683 1,449 217 123 33 U.S. branches and agencies of other foreign banks .. 25,639 18,972 6,667 17,458 365 6,522 1,020 174 100 34 Other commercial banks 2,981 2,780 201 2,292 32 162 429 43 23 35 Banks in foreign countries 21,044 16,168 4,876 14,602 791 3,554 1,264 114 720 36 Foreign branches of U.S. banks 860 759 100 666 11 97 45 36 5 37 Other 20,185 15,409 4,775 13,936 780 3,457 1,219 78 715 38 Other financial institutions 1,622 1,217 405 910 220 169 300 1 23 39 Loans for purchasing or carrying securities 897 867 29 784 29 83 0 1 0 40 Commercial and industrial loans 56,850 42,040 14,811 34,059 2,334 11,292 3,804 3,148 2,213 41 U.S. addressees (domicile) 32,581 22,960 9,621 16,751 762 7,850 3,237 2,306 1,675 42 Non-U.S. addressees (domicile) 24,270 19,079 5,190 17,309 1,572 3,442 567 842 538 43 Loans to individuals for household, family, and other personal expenditures 218 170 48 116 12 50 9 23 8 44 All other loans 16,854 12,835 4,019 12,041 1,815 1,860 542 180 415 45 Loans to foreign governments and official institutions 15,005 11,130 3,875 10,469 1,741 1,808 495 104 389 46 Other 1,849 1,705 143 1,572 75 52 47 76 26 47 Lease financing receivables 1 0 1 0 0 0 0 0 1 48 All other assets 37,430 22,415 15,014 18,586 2,118 12,249 433 3,247 798 49 Customers' liability on acceptances outstanding 12,156 9,149 3,007 8,731 308 2,632 182 219 83 50 U.S. addressees (domicile) 7,721 5,507 2,214 5,321 35 2,174 162 15 14 51 Non-U.S. addressees (domicile) 4,436 3,642 793 3,410 274 459 21 204 68 52 Net due from related banking institutions6 19,770 8,932 10,838 5,956 1,564 8,767 0 2,920 564 53 Other 5,503 4,334 1,169 3,899 246 850 250 107 151 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 54 Total liabilities5 224,332 170,044 54,288 149,547 9,146 42,174 10,017 7,868 5,580 55 Total deposits and credit balances 108,043 92,654 15,389 83,180 3,955 11,133 3,136 4,892 1,748 56 Individuals, partnerships, and corporations 35,916 32,208 3,708 26,210 1,430 1,323 831 4,632 1,491 57 U.S. addressees (domicile) 21,938 21,864 73 16,340 30 277 732 4,546 12 58 Non-U.S. addressees (domicile) 13,978 10,344 3,635 9,870 1,400 1,046 99 86 1,478 59 U.S. government, states, and political subdivisions in United States 76 76 0 10 0 3 0 63 0 60 All other 72,051 60,370 11,681 56,960 2,525 9,806 2,305 198 257 61 Foreign governments and official institutions .... 4,747 4,223 524 3,788 360 518 32 21 27 62 Commercial banks in United States 28,780 22,773 6,007 21,234 1,087 5,181 1,043 84 150 63 U.S. branches and agencies of other foreign banks 19,409 15,276 4,133 14,299 383 4,105 534 33 55 64 Other commercial banks in United States 9,371 7,497 1,874 6,936 704 1,076 509 51 95 65 Banks in foreign countries 37,826 32,789 5,037 31,379 1,010 4,075 1,214 87 62 66 Foreign branches of U.S. banks 6,667 5,444 1,223 5,222 291 927 197 25 5 67 Other banks in foreign countries 31,159 27,345 3,814 26,156 719 3,148 1,017 62 57 68 Certified and officers' checks, travelers checks, and letters of credit sold for cash 698 585 113 560 67 32 15 6 19 69 Demand deposits 3,128 2,898 230 2,642 68 88 113 112 106 70 Individuals, partnerships, and corporations 1,611 1,516 95 1,313 0 51 94 83 70 71 U.S. addressees (domicile) 1,021 1,021 0 835 0 19 91 77 0 72 Non-U.S. addressees (domicile) 589 495 95 479 0 32 3 5 70 73 U.S. government, states, and political subdivisions in United States 5 5 0 4 0 0 0 0 0 74 All other 1,513 1,378 135 1,324 68 37 19 28 36 75 Foreign governments and official institutions .... 186 183 3 160 0 2 2 21 1 76 Commercial banks in United States 44 44 1 42 0 1 0 1 1 77 U.S. branches and agencies of other foreign banks 6 6 0 6 0 0 0 0 0 78 Other commercial banks in United States 38 38 1 36 0 1 0 1 1 79 Banks in foreign countries 584 565 19 563 0 3 2 0 16 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 698 585 113 560 67 32 15 6 19 81 Time deposits 103,846 89,035 14,811 80,008 3,646 10,937 2,946 4,707 1,603 82 Individuals, partnerships, and corporations 33,481 30,103 3,378 24,497 1,298 1,167 660 4,476 1,382 83 U.S. addressees (domicile) 20,406 20,405 0 15,236 0 197 571 4,401 0 84 Non-U.S. addressees (domicile) 13,075 9,698 3,378 9,261 1,298 970 89 75 1,382 85 U.S. government, states, and political subdivisions in United States 71 71 0 6 0 3 0 62 0 86 All other 70,294 58,861 11,433 55,506 2,347 9,767 2,285 168 221 87 Foreign governments and official institutions .... 4,536 4,032 504 3,620 343 515 30 0 26 88 Commercial banks in United States 28,649 22,704 5,945 21,168 1,027 5,180 1,043 83 149 89 U.S. branches and agencies of other foreign banks 19,363 15,265 4,098 14,288 348 4,105 534 33 55 90 Other commercial banks in United States 9,286 7,439 1,848 6,880 679 1,075 508 50 94 91 Banks in foreign countries 37,109 32,125 4,984 30,718 977 4,072 1,212 85 46 92 Savings deposits 596 538 58 350 0 72 77 72 25 93 Individuals, partnerships, and corporations 595 537 58 350 0 72 77 71 25 94 U.S. addressees (domicile) 401 401 0 235 0 30 70 65 0 95 Non-U.S. addressees (domicile) 193 136 58 115 0 42 7 5 25 % U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 1 1 0 0 0 0 0 1 0 98 Credit balances 473 182 290 179 241 35 0 2 15 99 Individuals, partnerships, and corporations 230 52 178 49 131 34 0 2 14 100 U.S. addressees (domicile) 110 37 73 34 30 32 0 2 12 101 Non-U.S. addressees (domicile) 120 15 105 15 101 2 0 0 2 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 243 130 112 130 110 2 0 0 1 104 Foreign governments and official institutions .... 25 8 18 7 17 1 0 0 0 105 Commercial banks in United States 86 25 61 25 60 0 0 0 0 106 U.S. branches and agencies of other foreign banks 40 5 35 5 35 0 0 0 0 107 Other commercial banks in United States 46 20 26 20 25 0 0 0 0 108 Banks in foreign countries 131 98 34 98 33 0 0 0 0 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • March 1984 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies 109 Federal funds purchased and securities sold under agreement to repurchase 20,196 14,274 5,922 13,362 974 4,410 544 284 623 By holder 110 Commercial banks in United States 16,952 11,474 5,478 10,658 760 4,338 488 243 464 111 Others 3,245 2,800 444 2,704 213 72 55 41 159 By type 112 One-day maturity or continuing contract 19,003 13,156 5,847 12,332 942 4,367 455 284 623 in Securities sold under agreements to repurchase .. 1,587 1,485 103 1,239 75 28 158 87 0 114 Other 17,415 11,671 5,744 11,092 867 4,339 297 196 623 115 Other securities sold under agreements to repurchase 1,193 1,118 75 1,030 32 43 88 0 0 116 Other liabilities for borrowed money 48,560 26,292 22,268 24,372 2,551 19,690 852 684 411 117 Owed to banks 45,091 23,390 21,701 21,499 2,509 19,142 851 678 411 118 U.S. addressees (domicile) 43,110 21,724 21,385 19,898 2,266 19,110 829 639 367 119 Non-U.S. addressees (domicile) 1,981 1,666 315 1,601 243 32 23 39 44 120 Owed to others 3,469 2,902 567 2,873 41 548 0 6 0 121 U.S. addressees (domicile) 3,244 2,766 478 2,739 8 491 0 5 0 122 Non-U.S. addressees (domicile) 225 136 89 134 34 57 0 0 0 171 All other liabilities 47,533 36,824 10,709 28,633 1,667 6,942 5,486 2,008 2,797 124 Acceptances executed and outstanding 13,591 10,223 3,367 9,790 386 2,909 185 232 88 125 Net due to related banking institutions6 30,407 23,749 6,658 16,312 1,133 3,531 5,197 1,597 2,637 126 Other 3,535 2,851 684 2,532 148 502 103 178 72 MEMO 127 Time deposits of $100,000 or more 80,127 70,034 10,093 61,575 317 9,870 2,502 4,621 1,241 128 Certificates of deposit (CDs) in denominations of $100,000 or more 28,094 26,362 1,732 20,477 173 1,029 988 4,560 867 129 Other 52,032 43,671 8,361 41,099 144 8,840 1,514 61 374 130 Savings deposits authorized for automatic transfer and NOW accounts 77 53 23 35 0 15 7 8 12 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 0 0 0 0 0 0 0 0 0 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 4,983 4,953 30 44,,118866 10 38 146 594 8 133 Acceptances refinanced with a U.S.-chartered bank .. 3,411 2,577 835 2,249 131 704 46 281 0 134 Statutory or regulatory asset pledge requirement 64,986 63,921 1,064 57,141 1,005 99 6,715 16 10 135 Statutory or regulatory asset maintenance requirement 8,594 8,226 369 4,940 13 513 358 2,417 352 136 Commercial letters of credit 8,212 5,365 2,848 4,797 597 2,081 250 279 208 137 Standby letters of credit, total 14,366 12,069 2,297 10,539 502 1,338 693 539 756 138 U.S. addressees (domicile) 11,714 9,709 2,005 8,515 373 1,149 547 405 725 139 Non-U.S. addressees (domicile) 2,652 2,359 292 2,023 129 188 145 134 32 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 2,517 2,378 140 22,,225544 72 112 49 11 20 141 Holdings of commercial paper included in total gross loans 593 546 47 509 11 33 32 1 7 142 Holdings of acceptances included in total commercial and industrial loans 5,062 3,821 1,241 3,629 120 1,127 57 122 8 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 35,165 17,672 17,493 16,285 1,977 15,584 711 392 216 144 Gross due from related banking institutions6 86,962 61,546 25,417 54,221 6,960 17,320 3,235 3,793 1,433 145 U.S. addressees (domicile) 21,633 10,998 10,636 7,215 1,570 8,635 186 3,473 554 146 Branches and agencies in the United States 21,182 10.745 10,437 6,969 1,507 8,496 185 3,473 552 147 In the same state as reporter 751 375 376 329 87 275 0 21 39 148 In other states 20,430 10,370 10,060 6,640 1,420 8,220 185 3,453 513 149 U.S. banking subsidiaries7 452 253 199 246 63 140 1 0 2 150 Non-U.S. addressees (domicile) 65,329 50,548 14,781 47,006 5,390 8,685 3,049 320 879 151 Head office and non-U.S. branches and agencies. 62,761 48,373 14,388 44,932 5,373 8,406 2,956 311 782 152 Non-U.S. banking companies and offices 2,568 2,175 393 2,074 17 279 93 8 98 153 Gross due to related banking institutions6 97,599 76,363 21,236 64,577 6,530 12,084 8,433 2,470 3,506 154 U.S. addressees (domicile) 21,355 12,835 8,520 6,450 2,519 3,886 4,138 1,900 2,462 155 Branches and agencies in the United States 20,985 12,570 8,415 6,245 2,489 3,814 4,120 1,889 2,429 156 In the same state as reporter 711 361 350 314 91 249 0 18 39 157 In other states 20,274 12,210 8,064 5,931 2,398 3,564 4,120 1,870 2,390 158 U.S. banking subsidiaries7 370 265 105 205 30 72 18 12 33 159 Non-U.S. addressees (domicile) 76,245 63,528 12,717 58,127 4,011 8,198 4,295 570 1,044 160 Head office and non-U.S. branches and agencies. 74,168 61,639 12,530 56,332 3,949 8,091 4,201 570 1,026 161 Non-U.S. banking companies and offices 2,076 1,889 187 1,794 62 108 93 0 19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies All 4.30 Continued All states2 New York Other states2 IItteemm ffoo CC rr aa nn ll ii ii aa -- ,, IIlllliinnooiiss,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 bbrraanncchheess Branches Agencies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets 234,987 163,903 71,084 143,213 25,043 42,765 9,956 8,172 5,839 163 Cash and due from depository institutions 37,560 34,169 3,391 31,737 531 2,992 1,663 336 301 164 Federal funds sold and securities purchased under agreements to resell 5,964 4,410 1,554 4,149 1,006 499 152 100 58 165 Total loans 126,199 92,532 33,667 79,024 5,296 25,733 7,528 4,172 4,446 166 Loans to banks in foreign countries 20,971 15,988 4,984 14,357 865 3,608 1,317 116 709 167 Total deposits and credit balances 101,458 86,240 15,219 76,675 4,266 10,595 2,952 5,277 1,693 168 Time CDs in denominations of $100,000 or more 27,250 25,573 1,677 19,398 139 " 934 976 4,948 854 169 Federal funds purchased and securities sold under agreements to repurchase 19,884 13,538 6,346 11,877 877 4,995 1,103 283 749 170 Other liabilities for borrowed money 47,248 24,526 22,723 22,541 2,341 20,355 920 683 407 171 Number of reports filed8 434 249 185 155 40 115 43 33 48 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, footnote 6). On the former monthly branch and agency report, available through "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign the G.ll statistical release, gross balances were included in total assets and total Banks." This form was first used for reporting data as of June 30, 1980. From liabilities. Therefore, total asset and total liability figures in this table are not November 1972 through May 1980, U.S. branches and agencies of foreign banks comparable to those in the G.ll tables. had filed a monthly FR 886a report. Aggregate data from that report were 6. "Related banking institutions" includes the foreign head office and other available through the Federal Reserve statistical release G.ll, last issued on U.S. and foreign branches and agencies of the bank, the bank's parent holding July 10, 1980. Data in this table and in the G.l 1 tables are not strictly comparable company, and majority-owned banking subsidiaries of the bank and of its parent because of differences in reporting panels and in definitions of balance sheet holding company (including subsidiaries owned both directly and indirectly). items. Gross amounts due from and due to related banking institutions are shown as 2. Includes the District of Columbia. memo items. 3. Includes all offices that have the power to accept deposits from U.S. 7. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majorityresidents, including any such offices that are considered agencies under state law. owned by the foreign bank and by related foreign banks and includes U.S. offices 4. Agencies account for virtually all of the assets and liabilities reported in of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, California. and of New York State (Article XII) investment companies. 5. Total assets and total liabilities include net balances, if any, due from or due 8. In some cases two or more offices of a foreign bank within the same to related banking institutions in the United States and in foreign countries (see metropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 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 MARYELLEN 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 S. PLOTKIN, Assistant Director SIDNEY M. SUSSAN, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

79 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., Adviser, Equal Employment STEPHEN R. MALPHRUS, Assistant Staff Director for Office Opportunity Programs 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 RICHARD J. MANASSERI, Assistant Director WALTER ALTHAUSEN, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director CHARLES W. BENNETT, Assistant Director ROBERT J. ZEMEL, Assistant Director ANNE M. DEBEER, Assistant Director JACK DENNIS, JR., Assistant Director EARL G. HAMILTON, Assistant Director DIVISION OF PERSONNEL * JOHN F. SOBALA, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, 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

80 Federal Reserve Bulletin • March 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 JOHN G. MCCOY, President JOSEPH J. PINOLA, Vice President VINCENT C. BURKE, JR., N. BERNE HART, AND LEWIS T. PRESTON, Directors 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 NAT S. ROGERS, 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

81 and Advisory Councils CONSUMER ADVISORY COUNCIL WILLARD P. OGBURN, Boston, Massachusetts, Chairman TIMOTHY D. MARRINAN, Minneapolis, Minnesota, Vice Chairman RACHEL G. BRATT, Medford, Massachusetts FREDERICK H. MILLER, Norman, Oklahoma JAMES G. BOYLE, Austin, Texas MARGARET M. MURPHY, Columbia, Maryland GERALD R. CHRISTENSEN, Salt Lake City, Utah ROBERT F. MURPHY, Detroit, Michigan THOMAS L. CLARK, JR., New York, New York LAWRENCE S. OKINAGA, Honolulu, Hawaii JEAN A. CROCKETT, Philadelphia, Pennsylvania ELVA QUIJANO, San Antonio, Texas MEREDITH FERNSTROM, New York, New York JANET J. RATHE, Portland, Oregon ALLEN J. FISHBEIN, Washington, D.C. JANET SCACCIOTTI, Providence, Rhode Island E.C.A. FORSBERG, SR., Atlanta, Georgia GLENDA G. SLOANE, Washington, D.C. STEVEN M. GEARY, Jefferson City, Missouri HENRY J. SOMMER, Philadelphia,Pennsylvania RICHARD F. HALLIBURTON, Kansas City, Missouri WINNIE F. TAYLOR, Gainesville, Florida LOUISE MCCARREN HERRING, Cincinnati, Ohio MICHAEL M. VAN BUSKIRK, Columbus, Ohio CHARLES C. HOLT, Austin, Texas CLINTON WARNE, Cleveland, Ohio HARRY N. JACKSON, Minneapolis, Minnesota FREDERICK T. WEIMER, Chicago, Illinois KENNETH V. LARKIN, San Francisco, California MERVIN WINSTON, Minneapolis, Minnesota THRIFT INSTITUTIONS ADVISORY COUNCIL THOMAS R. BOMAR, Miami, Florida, President RICHARD H. DEIHL, Los Angeles, California, Vice President JAMES A. ALIBER, Detroit, Michigan NORMAN M. JONES, Fargo, North Dakota GENE R. ARTEMENKO, Chicago, Illinois ROBERT R. MASTERTON, Portland, Maine J. MICHAEL CORNWALL, Dallas, Texas JOHN T. MORGAN, New York, New York JOHN R. EPPINGER, Villanova, Pennsylvania FRED A. PARKER, Monroe, North Carolina SARAH R. WALLACE, Newark, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 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. I. 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

83 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 year. STAFF STUDIES: Summaries Only Printed in the Bulletin Monetary Policy and Reserve Requirements Handbook. $60.00 per year. Securities Credit Transactions Handbook. $60.00 per year. Studies and papers on economic and financial subjects that Federal Reserve Regulatory Service. 3 vols. (Contains all are of general interest. Requests to obtain single copies of three Handbooks plus substantial additional material.) the full text or to be added to the mailing list for the series $175.00 per year. may be sent to Publications Services. Rates for subscribers outside the United States are as follows and include additional air mail costs: 113. BELOW THE BOTTOM LINE: THE USE OF CONTINGEN- Federal Reserve Regulatory Service, $225.00 per year. CIES AND COMMITMENTS BY COMMERCIAL BANKS, by Each Handbook, $75.00 per year. Benjamin Wolkowitz and others. Jan. 1982. 186 pp. WELCOME TO THE FEDERAL RESERVE. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- DENCE ON COMPETITION AND PERFORMANCE IN CATIONS BANKING MARKETS, by Timothy J. Curry and John T. SUSTAINABLE RECOVERY: SETTING THE STAGE, November Rose. Jan. 1982. 9 pp. 1982. 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL UCT MIX IN THE U.S. PAYMENTS MECHANISM, by HUMAN RELATIONS AWARD DINNER, December 1982. David B. Humphrey. Apr. 1982. 18 pp. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION 116. DIVISIA MONETARY AGGREGATES: COMPILATION, CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- DATA, AND HISTORICAL BEHAVIOR, by William A. CISCO, March 1983. Barnett and Paul A. Spindt. May 1982. 82 pp. RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT VOLCKER, April 1983. ALLOCATION, by Glenn Canner. June 1982. 8 pp. CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON 118. INTEREST RATES AND TERMS ON CONSTRUCTION COSTS, PRICES, AND RETAIL SALES, July 1983. 114 pp. LOANS AT COMMERCIAL BANKS, by David F. Seiders. July 1982. 14 pp. 119. STRUCTURE-PERFORMANCE STUDIES IN BANKING: AN 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 H. Talley. Feb. 1983. 19 pp. Out of print. Alice in Debitland 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING Consumer Handbook to Credit Protection Laws COMPANIES, by John T. Rose and Samuel H. Talley. The Equal Credit Opportunity Act and . . . Age May 1983. 11 pp. The Equal Credit Opportunity Act and . . . Credit Rights in 124. INTERNATIONAL BANKING FACILITIES AND THE EU- Housing RODOLLAR MARKET, by Henry S. Terrell and Rodney The Equal Credit Opportunity Act and . . . Doctors, Law- H. Mills. August 1983. 14 pp. yers, Small Retailers, and Others Who May Provide Inci- 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY dental Credit AGGREGATES: A MODEL-BASED APPROACH, by David The Equal Credit Opportunity Act and . . . Women A. Pierce, Michael R. Grupe, and William P. Cleve- Fair Credit Billing land. August 1983. 23 pp. Federal Reserve Glossary 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- Guide to Federal Reserve Regulations KET INTERVENTION, by Donald B. Adams and Dale How to File A Consumer Credit Complaint W. Henderson. August 1983. 5 pp. If You Borrow To Buy Stock *127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- If You Use A Credit Card VENTION: JANUARY-MARCH 1975, by Margaret L. Instructional Materials of the Federal Reserve System Greene. Series on the Structure of the Federal Reserve System *128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- The Board of Governors of the Federal Reserve System VENTION: SEPTEMBER 1977-OcTOBER 1981, by Marga- The Federal Open Market Committee ret L. Greene. Federal Reserve Bank Board of Directors *129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Federal Reserve Banks 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

84 130. EFFECTS OF EXCHANGE RATE VARIABILITY ON IN- REPRINTS OF BULLETIN ARTICLES TERNATIONAL TRADE AND OTHER ECONOMIC VARIA- Most of the articles reprinted do not exceed 12 pages. BLES: A REVIEW OF THE LITERATURE, by Victoria S. Farrell with Dean A. DeRosa and T. Ashby McCown. January 1984. 21 pp. Survey of Finance Companies. 1980. 5/81. 131. CALCULATIONS OF PROFITABILITY FOR U.S. DOLLAR- Bank Lending in Developing Countries. 9/81. DEUTSCHE MARK INTERVENTION, by Laurence R. The Commercial Paper Market since the Mid-Seventies. 6/82. Jacobson. October 1983. 8 pp. Applying the Theory of Probable Future Competition. 9/82. 132. TIME-SERIES STUDIES OF THE RELATIONSHIP BE- International Banking Facilities. 10/82. TWEEN EXCHANGE RATES AND INTERVENTION: A U.S. International Transactions in 1982. 4/83. REVIEW OF THE TECHNIQUES AND LITERATURE, by New Federal Reserve Measures of Capacity and Capacity Kenneth Rogoff. October 1983. 15 pp. Utilization. 7/83. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Foreign Experience with Targets for Money Growth. 10/83. VENTION, AND INTEREST RATES: AN EMPIRICAL IN- Intervention in Foreign Exchange Markets: A Summary of VESTIGATION, by Bonnie E. Loopesko. November Ten Staff Studies. 11/83. 1983. 20 pp. A Financial Perspective on Agriculture. 1/84. 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, GERMA- NY, AND JAPAN, by Deborah J. Danker, Richard A. Haas, Dale W. Henderson, Steven A. Symansky, and Ralph W. Tryon. 136. THE EFFECTS OF FISCAL POLICY ON THE U.S. ECONO- MY, by Darrell Cohen and Peter B. Clark. January 1984. 16 pp. 137. THE IMPLICATIONS FOR BANK MERGER POLICY OF FINANCIAL DEREGULATION, INTERSTATE BANKING, AND FINANCIAL SUPERMARKETS, by Stephen A. Rhoades. February 1984. 8 pp. *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

85 Index to Statistical Tables References are to pages A3 through A77 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, 68-73 Turnover, 14 Domestic finance companies, 37 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Foreign banks, U.S. branches and agencies, 22, 74-77 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, 69, 71, 73 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 Bankers balances, 17-20, 68, 70, 72 (See also Foreigners) (See Loans) Bonds (See also U.S. government securities) Dividends, corporate, 35 New issues, 34 Rate s 3 EMPLOYMENT, 44, 45 Branch banks, 14, 21, 54, 74-77 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, 69, 71, 73 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, 68, 70, 72 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, 68-73 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, 69, 71, 73 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, 68, 70, 72 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 22, 74-77 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, 69, 71, 73 Liabilities to, 20, 53, 54-58, 62, 64, 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 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, 69 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 Insured commercial banks, 68-73 Residential mortgage loans, 38 Interbank loans and deposits, 17 Retail credit and retail sales, 40, 41, 44 Interest rates Bonds, 3 SAVING Business loans of banks, 25 Flow of funds, 42, 43 Federal Reserve Banks, 3, 6 National income accounts, 51 Foreign central banks and foreign countries, 65, 66 Savings and loan associations, 8, 28, 39, 40, 42 (See also Money and capital markets, 3, 26 Thrift institutions) Mortgages, 3, 38 Savings deposits (See Time and savings deposits) Prime rate, commercial banks, 24 Securities (See specific types) Time and savings deposits, 8 Federal and federally sponsored credit agencies, 33 International capital transactions of United States, 52-65 Foreign transactions, 64 International organizations, 56, 57-59, 62-65 New issues, 34 Inventories, 50 Prices, 27 Investment companies, issues and assets, 35 Special drawing rights, 4, 10, 52, 53 Investments (See also specific types) State and local governments Banks, by classes, 17-20, 28 Deposits, 18-20 Commercial banks, 3, 15, 17-20, 21, 39, 68, 70 Holdings of U.S. government securities, 31 Federal Reserve Banks, 10, 11 New security issues, 34 Savings institutions, 28, 39 Ownership of securities issued by, 18, 19, 20, 28 Rates on securities, 3 LABOR force, 45 Stock market, 27 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 34 Banks, by classes, 17-20 Prices, 27 Commercial banks, 3, 15, 17-20, 21, 25, 68, 70, 72 Federal Reserve Banks, 4, 5, 6, 10, 11 Student Loan Marketing Association, 33 Insured or guaranteed by United States, 38, 39 Savings institutions, 28, 39 TAX receipts, federal, 30 Thrift institutions, 3 (See also Credit unions, Mutual MANUFACTURING savings banks, and Savings and loan associations) Capacity utilization, 44 Time and savings deposits, 3, 8, 13, 16, 17-21, 69, 71, 73 Production, 44, 47 Trade, foreign, 53 Margin requirements, 27 Treasury currency, Treasury cash, 4 Member banks (See also Depository institutions) Treasury deposits, 4, 10, 29 Federal funds and repurchase agreements, 5 Treasury operating balance, 29 Reserve requirements, 7 Mining production, 47 UNEMPLOYMENT, 45 Mobile homes shipped, 48 U.S. government balances Monetary and credit aggregates, 3, 12 Commercial bank holdings, 17, 18, 19, 20 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 10, 29 Money stock measures and components, 3, 13 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 16, 17-20, 22, 31, 69, 70, 72 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 32 Mutual savings banks, 8, 18-20, 28, 31, 39, 40 (See also Federal Reserve Bank holdings, 4, 10, 11, 31 Thrift institutions) Foreign and international holdings and transactions, 10, 31, 65 NATIONAL defense outlays, 30 Open market transactions, 9 National income, 50 Outstanding, by type and holder, 28, 31 Rates, 3, 26 OPEN market transactions, 9 U.S. international transactions, 52-65 Utilities, production, 47 PERSONAL income, 51 Prices VETERANS Administration, 38, 39 Consumer and producer, 44, 49 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

87 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert P. Henderson Frank E. Morris Thomas I. Atkins James A. Mcintosh NEW YORK* 10045 John Brademas Anthony M. Solomon Gertrude G. Michelson Thomas M. Timlen Buffalo 14240 M. Jane Dickman John T. Keane PHILADELPHIA 19105 Robert M. Landis 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 Vacant Charles A. Cerino Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 William S. Lee Robert P. Black Leroy T. Canoles, Jr. Jimmie R. Monhollon Baltimore 21203 Robert L. Tate 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. Jack Guynn Birmingham 35283 Martha A. Mclnnis Fred R. Hen- Jacksonville 32231 Jerome P. Keuper James D. Hawkins Miami 33152 Sue McCourt Cobb Patrick K. Barron Nashville 37203 C. Warren Neel Jeffrey J. Wells New Orleans 70161 Sharon A. Perlis Henry H. Bourgaux 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 Sheffield Nelson John F. Breen Louisville 40232 Sister Eileen M. Egan James E. Conrad Memphis 38101 Patricia W. Shaw Paul I. Black, Jr. MINNEAPOLIS 55480 William G. Phillips E. Gerald Corrigan John B. Davis, Jr. Thomas E. Gainor Helena 59601 Ernest B. Corrick 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 Patience Latting 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 Mary Carmen Saucedo Joel L. Koonce, Jr. Houston 77252 Paul N. Howell J.Z. Rowe San Antonio 78295 Lawrence L. Crum 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 Paul E. Bragdon 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

88 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories —— iliail lM • mm Por '"ana Helena ® Minneapolis \ < c©S.1J) f"-yI sL&f -ki O^B / jSo/t Lake Cfty )maha*\ _J J PlM ) P w-ffimS?? ® I Denv Kansas City -ir Oklahoma Cit\^Memphis Nash w» H« in 1® Y^iyB^M Dallas® A E/J'MO 11) f i S Em , HoustonI ^San Antonio r* * H• Hi 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