Federal Reserve Bulletin, 1984-06

VOLUME 70 • NUMBER 6 • JUNE 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 483 PERSPECTIVES ON THE RECENT 502 Karen N. Horn, President, Federal Reserve BEHAVIOR OF INFLATION Bank of Cleveland, discusses some of the effects of interest rates on the recovery in This article reviews the wage and price the Fourth Federal Reserve District, includdevelopments of the past several years, ing why interest rates seem to be symptoexamines the key factors in the recent disinmatic of some of the underlying issues that flation, and assesses the way those factors confront private and public decisionmay shape the outlook for inflation. makers, before the Subcommittee on Domestic Monetary Policy of the House Com- 492 TREASURY AND FEDERAL RESERVE mittee on Banking, Finance and Urban FOREIGN EXCHANGE OPERATIONS. Affairs, June 8, 1984. INTERIM REPORT The dollar declined modestly on balance 507 ANNOUNCEMENTS over the three months ended in April. Nominations sought for appointments to the Consumer Advisory Council. 495 STAFF STUDIES Classification of certain Venezuelan loans. In "Antitrust Laws, Justice Department Guidelines, and the Limits of Concentration Change in Board staff. in Local Banking Markets," the author Extension of comment period. investigates the logical implications of using the current Justice Department guidelines Revised list of over-the-counter margin on horizontal mergers as a basis for merger stocks. policy in the commercial banking industry Admission of three state banks to memberthrough a simulation of merger activity in ship in the Federal Reserve System. 318 standard metropolitan statistical areas and 2,408 non-SMSA counties in the United 509 RECORD OF POLICY ACTIONS OF THE States. FEDERAL OPEN MARKET COMMITTEE 497 INDUSTRIAL PRODUCTION At its meeting on March 26-27, 1984, the „ ( Committee decided to seek to maintain Output rose about 0.4 percent in May. pressures on reserve positions that were deemed to be consistent with growth of Ml, 499 STATEMENTS TO CONGRESS M2, and M3 from March to June at annual Lyle E. Gramley, Member, Board of Gov- rates of around 6V2, 8, and SV2 percent ernors, presents the views of the Board on respectively; initially those pressures the behavior of interest rates this year and should be close to those that had emerged in focuses on the principal causes of the recent recent days. The members agreed that rise in interest rates and the implication of greater restraint on reserve conditions this development for the overall expansion would be acceptable in the context of more of the economy, before the Subcommittee substantial growth in the monetary aggreon Domestic Monetary Policy of the House gates, while somewhat lesser restraint Committee on Banking, Finance and Urban might be acceptable if monetary growth Affairs, June 8, 1984. were significantly slower. In either event, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

the need for greater or lesser restraint A65 GUIDE TO TABULAR PRESENTATION, would also be appraised against the back- STATISTICAL RELEASES, AND SPECIAL ground of developments relating to the con- TABLES tinuing strength of the business expansion and of inflationary pressures and the rate of A76 BOARD OF GOVERNORS AND STAFF expansion in total credit. It was agreed that the intermeeting range for the federal funds A78 FEDERAL OPEN MARKET COMMITTEE rate would be raised to 7Vi to IIV2 percent. AND STAFF; ADVISORY COUNCILS 515 LEGAL DEVELOPMENTS A80 FEDERAL RESERVE BOARD PUBLICATIONS Various bank holding company and bank merger orders and pending cases. A86 INDEX TO STATISTICAL TABLES Al FINANCIAL AND BUSINESS STATISTICS A88 FEDERAL RESERVE BANKS, BRANCHES, A3 Domestic Financial Statistics AND OFFICES A42 Domestic Nonfinancial Statistics A50 International Statistics A89 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Recent Behavior of Inflation David Stockton, of the Board's Division of increases of domestic goods that face foreign Research and Statistics, prepared this article. competition. Another integral feature of the re- Samuel Kortum provided research assistance. cent disinflation was a break in the entrenched expectations that inflation would remain high, or The three years since 1980 have been marked by accelerate. Finally, food and energy prices rose a dramatic and widespread slowing in the rate of less than the overall rate of inflation in recent inflation. Most broad-based measures of inflation years, after several episodes of sharp increases show prices increasing at less than half the pace in their relative prices during the late 1970s. The that prevailed in the late 1970s and 1980. This price performance in these markets over the past article reviews the wage and price developments three years reflects not only more favorable of the last several years, examines the key fac- supply conditions but also the restraint that tors in the disinflation, and assesses the way worldwide recession has exerted on demand. those factors may shape the outlook for inflation. The primary element in the sustained decline in the rate of price inflation was the slack in the SUMMARY OF RECENT PRICE economy that developed as growth in aggregate DEVELOPMENTS demand was constrained, primarily by a policy of monetary restraint. At the same time, other, The deceleration of prices between 1980 and related developments that had contributed to 1983 was widespread for both consumers and high rates of price increase began acting instead producers (see chart 1 and the table). The conto reinforce the slowdown in inflation. A steady sumer price index, which rose \2Vi percent in rise in the value of the U.S. dollar in foreign 1980, increased only VA percent in 1983. Markexchange markets not only held down the price ing the smallest advance since 1964, producer of imported products but also restrained price prices for finished goods were up just Vi percent in 1983, compared with a rate of increase of ll3/4 percent in 1980. The initial signs of a sharp slowing in consum- 1. Recent disinflation er price increases appeared in 1981 and were Percentage most pronounced among commodities. Favorable developments in food and energy markets 15 helped lower the overall rate of inflation. Outside the food and energy areas, the principal forces 10 behind the deceleration were the appreciation of the dollar and some slackening of aggregate 5 demand. Consumer price inflation for commodities other than food and energy dropped to slightly less than 8 percent in 1981, VA percentage points below the pace of the preceding year. The curve for the CPI plots the percentage change in data for a given month measured from the same month a year earlier. The curve In contrast, prices for services continued to for the gross business product index plots the percentage change in advance at a double-digit rate, largely because data for a given quarter from the same quarter a year earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

484 Federal Reserve Bulletin • June 1984 Consumer and producer prices Percentage change from December to December, except as noted Index 1979 1980 1981 1982 1983 1984' Consumer price index All items 13.3 12.4 8.9 3.9 3.8 5.1 Food 10.2 10.2 4.3 3.1 2.6 6.5 Energy 37.4 18.1 11.9 1.3 -.5 1.0 Other2 7.5 9.9 9.4 6.0 4.9 5.4 Commodities 6.1 9.3 7.9 5.1 5.0 4.5 Services 8.8 10.3 10.6 6.9 4.8 5.8 Producer price index Finished goods 12.8 11.8 7.0 3.6 .6 4.4 Capital equipment 8.9 11.5 9.0 3.9 1.9 4.2 Intermediate materials3 12.7 10.1 6.4 .5 3.0 2.8 — .... 1. Percentage change from December 1983 to April 1984 at a beginning in 1983, the data include a rental-equivalence measure of compound annual rate. homeowner costs. 2. Data are not strictly comparable over time. Before 1983, they are 3. Excluding food and energy. based on series that exclude major components of homeownership; SOURCE. Bureau of Labor Statistics. those prices tend to reflect trends in labor costs, prices rose less rapidly than overall prices in which react less promptly to changes in demand. each year from 1981 through 1983. Over the The onset of the 1981-82 recession brought a three-year period, prices for consumer foods more widespread reduction in price inflation. rose only about 3!/2 percent per year; in compari- Apart from food and energy, consumer prices son, food prices increased more than 10 percent rose 6 percent in 1982, nearly 3!/2 percentage per year between 1978 and 1980. The slowdown points less than a year earlier. Price increases for of energy and food prices was certainly influhousehold commodities such as furniture, appli- enced, in part, by favorable supply developances, and cars slowed further as rising unem- ments. But these prices also were affected by the ployment and sluggish income growth damped same forces that acted to reduce inflation in the consumer demand. Furthermore, the dollar's economy at large: depressed aggregate demand sustained rise against most major foreign curren- at home and abroad and a moderation in labor cies limited price increases for a broad range of costs. imported products, including consumer nondura- Prices for industrial materials, which increased bles such as apparel and footwear. Price in- quite rapidly throughout the 1970s, also were creases for consumer services also were smaller pushed down by the worldwide decline in ecoby 1982, as spending declined and labor costs nomic activity. Moreover, the appreciation of decelerated. Increases in producer prices for the dollar reduced further the prices of many capital equipment also slowed in response to imported raw materials. As a result, prices for weaker investment by businesses in plant and industrial materials, as measured by the Comequipment and to the availability of cheaper modity Research Bureau's index of industrial imports. Over 1982, capital equipment prices raw materials, plunged 27 percent from their rose just under 4 percent, less than half the pace peak in early 1980 to the trough of the second of 1980. recession, late in 1982. The economic recovery, Developments in energy and food prices, which gathered force in 1983, has generated a which rose very sharply between 1978 and 1980, sharp cyclical rebound in materials prices as helped to hold down general price inflation in production has expanded and depleted invensubsequent years. The curtailment in the produc- tories have been rebuilt. Nonetheless, prices for tion of crude oil stemming from the revolution in industrial commodities in the first quarter of 1984 1979 in Iran pushed up the average price of remained about 10 percent below the peaks domestic crude oil from $17 per barrel in 1979 to reached in 1980. $35 in 1981. By 1983, however, oil prices had Despite the vigorous expansion of activity that fallen back to around $29 per barrel. The prices began early last year, consumer price inflation of other energy sources, such as coal and natural generally remained in 1983 at about its 1982 pace gas, have tended to follow oil prices. Retail food while increases in producer prices eased further. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Recent Behavior of Inflation 485 Over the first four months of this year, consumer 2. Measures of economic slack prices, excluding food and energy, increased at Percent about a 5VZ percent annual rate, somewhat higher than the rate of increase in 1983, but still lower than the 6 percent pace of 1982. Price increases for capital equipment slowed to a 2 percent rate in 1983, before moving up to a 4'A percent rate over the first four months of this year. The remaining economic slack and the persistence of a strong dollar no doubt have been important factors in the continued moderate rates of price increase. In addition, energy prices, on balance, have contributed very little to overall inflation. However, consumer food prices advanced much more rapidly early this year than in 1983, as severe winter weather and the lagged effects of 1978 1980 1982 1984 last summer's drought combined to curtail sup- Quarterly average data. plies. labor and product markets strengthened considerably, enough slack remained in resource utili- FACTORS INFLUENCING zation to maintain restraints on price and wage RECENT PRICE BEHAVIOR increases. The high and accelerating rates of price in- Aggregate Demand crease between 1978 and 1980 firmly entrenched expectations of double-digit inflation. Such ex- Between early 1980 and late 1982, the economy pectations influenced businesses, workers, and went through one of the most difficult periods of consumers to act in ways that tended to reinforce adjustment in the postwar era. As a result of two the inertia of the wage-price process. Evidence recessions, real gross national product was available from surveys indicates that expectaslightly lower in the final quarter of 1982 than it tions of future inflation peaked during 1979 and had been three years earlier. Manufacturing ca- 1980 in the range of 10 to 12 percent (chart 3). As pacity utilization, which had peaked at 871/4 inflation began to slow in 1981, so did expectapercent in early 1979, plunged to 69V2 percent tions of future inflation. The survey measures of toward the end of 1982. The civilian unemployment rate climbed from 53/4 percent to more than 3. Price expectations IOV2 percent over the same period (chart 2). During that prolonged period in which the gap between actual and potential levels of economic activity widened, pressures against increases in prices and wages intensified. In addition to the impact that slack conditions in domestic labor and product markets had on wage and price determination, foreign competition played an important role in breaking the inflation momentum of the late 1970s. Early in 1983, the economy began a vigorous The Michigan Survey is taken by the Survey Research Center of the recovery. Indeed, the growth of real GNP over University of Michigan; the curve plots the change expected in a given month for twelve months ahead. The data for the curve marked the five quarters ending in the first quarter of Livingston Survey are calculated by the Federal Reserve Bank of 1984 outpaced the average for the first five Philadelphia from data compiled by Joseph Livingston twice a year; that curve also projects the change expected twelve months ahead. quarters of other postwar recoveries. Although The curve for the CPI plots the percentage change from a year earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

486 Federal Reserve Bulletin • June 1984 expectations of consumer price inflation for the 4. Trade-weighted exchange value of the U.S. dollar year ahead reached a low of 4'/2 to 5 percent in • March 1973=100 1983 but have recently moved back to the 5 to 6 percent range. Although they are roughly half the level that prevailed in 1979 and 1980, inflation expectations, perhaps the most unyielding element of the inflation process, still lend considerable upward momentum to wage and price be- n havior. 1978 1980 1984 Quarterly data. The Role of Exchange Rates in Domestic Inflation reduced inflation by 1 to IV2 percentage points, Movements in the exchange value of the dollar on average, in each of the last three years. The are an important factor in the inflation process in impact of changes in the value of the dollar on the United States. Their importance became domestic prices is difficult to separate from other particularly evident when the trade-weighted val- macroeconomic adjustments, including changes ue of the dollar depreciated almost 17 percent in governmental policies, which may themselves between the beginning of 1977 and the beginning alter the dollar's value. Moreover, there is some of 1979, thus opening an important channel for uncertainty about the lag with which the full the acceleration of inflation. The subsequent effect of any change in the dollar is realized. reversal of the decline in the dollar beginning in 1980, and its continued rise through early 1984— in all, marking a 50 percent appreciation—has Labor Market and Wage Developments been an important factor in the recent disinflation (chart 4). The sharp slowing in the rate of increase in labor Movements in the exchange rate have macro- costs over the past three years reflects the intereconomic consequences that influence the do- action of the cyclical contraction in labor demestic price level in several ways. First, an mand with other forces working to raise producappreciation in the dollar can lead directly to tivity and enhance competitiveness. During the lower prices both for finished goods that are late 1970s, compensation per hour in the nonfarm purchased from abroad and for imported inputs business sector rose at an annual rate of almost 9 and materials, and thus can act to reduce the percent. Not only were wages increasing at a costs of producing goods and services domesti- rapid rate but legislated increases in payroll taxes cally. Second, competition from lower-priced also boosted labor costs further. At the same foreign goods places pressure on domestic pro- time, the growth of labor productivity dropped ducers of similar goods to hold the line on prices off, to less than 1 percent per year, so that it if they are not to lose their shares of sales in both provided little offset to the rise in hourly comdomestic and foreign markets. Finally, through pensation. The rise in labor costs was especially their effects on prices, an improvement in the rapid among unionized workers; and by the early dollar exchange rate can indirectly influence 1980s, the ability of heavily unionized industries, wage-setting, reducing the catchup for past inflasuch as construction, trucking, autos, and steel, tion as well as damping expectations of future to compete with lower-cost nonunion or foreign inflation. businesses had weakened considerably. All else equal, empirical estimates suggest, a Wages were not so quick as prices to respond 10 percent appreciation of the dollar reduces the to the changed economic environment. Hourly level of consumer prices approximately IV2 per- compensation, which includes fringe benefits cent over two to three years. This relation im- and payroll taxes as well as wages, rose 103/4 plies, as a rough estimate, that the rise in the percent over the four quarters of 1980 (chart 5). value of the dollar since mid-1980 probably has Although wage increases began to ease off the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Recent Behavior of Inflation 487 5. Hourly compensation steel, airlines, meatpacking, trucking, and construction. In 1982 and 1983, one-third of the 6LA Percentage change from year earlier million workers covered by major collective bargaining agreements agreed to forgo a first-year 10 wage change, and another 8 percent took initial cuts in pay. In some instances, previously guaranteed cost-of-living adjustments were postponed or even eliminated. As a result, the average rise in wages for unionized workers—in 1 1 1983, Vh percent as measured by the employ- 1979 1981 1983 ment cost index—dipped below the increase for The bars for hourly compensation measure the four-quarter per- nonunion workers. centage change in hourly compensation for the nonfarm business sector. Shaded areas represent the estimated contribution of payroll Another significant development over the past taxes. four years has been an improvement in the trend rate of increase in labor productivity (chart 7). following year, a hike in payroll taxes helped to keep the rise in hourly compensation at 9 percent. In 1982 and 1983, however, the wage-price 7. Productivity trends and cycles spiral began to unwind more rapidly. The ongo- 1972 dollars per hour, ratio scale ing deceleration in consumer prices reduced the size of catchup wage adjustments and reinforced expectations that inflation would remain at reduced rates. An important feature of the deceleration in wage increases over the 1980-83 period was the departure of wage-setting in the unionized sector Percentage change from year earlier from past trends (chart 6). One of the early signs that some industries were responding to keener Unit labor costs f\ competition appeared in 1981, when Chrysler 10 and the United Auto Workers negotiated wage concessions. Over the next three years, concessions spread to a variety of industries, including • M I I I M I I I M I I I M I I I M I I! Quarterly data. 6. Wage trends Between the fourth quarter of 1973 and the first Percentage change from year earlier quarter of 1980, output per hour in the nonfarm Wage indexes business sector rose about V2 percent per year. Subsequently, during the two recessions of the early 1980s, productivity rose and fell in a typical cyclical manner. Nevertheless, by 1982 signs had Average hourly earnings developed that businesses were succeeding in making more fundamental improvements in effi- Employment cost indexes ciency. With real output still falling in 1982, firms aggressively cut their workforces and adjusted their production techniques, and output per hour ^^^^vUnion began to increase before the turnaround in sales Nonunion occurred. Normally, at that stage of a cyclical expansion, labor productivity is still rising faster 1 1 1 1 1 1 1978 1980 1982 1984 than its longer-run trend, as businesses make up for inefficient use of resources while sales were Quarterly data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

488 Federal Reserve Bulletin • June 1984 falling. However, even after accounting for this 9. Energy prices factor, the recent performance of productivity suggests that its underlying trend rate of growth may be around 1 to V/2 percent, marking an improvement from the dismal performance of the 1970s. The combination of smaller increases in hourly compensation and the cyclical rebound in productivity has damped considerably the rise in unit labor costs. For the five quarters ending in the first quarter of 1984, unit labor costs in the nonfarm business sector rose at an annual rate of nearly VA percent. The easing of labor costs has Monthly data. allowed businesses to score an impressive rebound in profitability without stepping up significantly the rate of price increase. Corporate prof- wide recession. In major industrial countries, for its from current production as a share of gross example, oil consumption fell 17 percent benational product (that is, book profits with inven- tween 1979 and 1982. Second, oil production tory valuation and capital consumption adjust- outside OPEC increased, notably in Mexico and ments) jumped more than 50 percent between the in the North Sea. These two developments cut fourth quarter of 1982 and the first quarter of sales by OPEC from 31 million barrels per day in 1984 (chart 8). 1979 to HVi million barrels per day in 1983. As a consequence, the share of world oil production controlled by OPEC fell from roughly one-half to 8. Ratio of corporate profits to GNP one-third during that period. Percent Domestic oil prices tended to track developments in the international markets, particularly after the deregulation of oil prices in early 1981. Gasoline prices, for instance, declined more than 13 cents per gallon between 1981 and 1983, despite the hike in the federal excise tax on gasoline of 5 cents per gallon beginning in 1983. Unlike petroleum, nearly all natural gas, which accounts for roughly one-quarter of all domestic energy consumption, remains subject to price control by the federal government under the Energy Markets provisions of the Natural Gas Policy Act of 1978. As a result, prices of natural gas, which had After playing an important role in the inflation of increased sharply through the mid-1970s in rethe late 1970s, developments in energy prices sponse to the first oil shock, continued to climb turned quite favorable in the past three years. through 1982; retail prices rose 20 percent. By The second round of increases in international oil 1983, however, falling oil prices had increased prices in 1979 pushed up world oil prices through the difficulty of selling natural gas in industrial 1980 and 1981. However, since early 1981, world markets, where purchasers have considerable oil prices have drifted downward (chart 9). freedom to choose among alternative fuels. In The Organization of Petroleum Exporting response to the competitive pressure from oil Countries (OPEC) was forced to lower its market products, and in spite of the complex regulatory and institutional framework oriented toward supprice for crude oil by two related developments. porting prices, natural gas prices stabilized by First, world oil consumption dropped sharply in the end of 1983. response to efforts at conservation and world- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Recent Behavior of Inflation 489 Agricultural Markets 10. Prices received by farmers - ftjrcentage change from year earlier Consumer food prices rose more than prices in general during the 1970s. By 1980, many observ- 20 ers were convinced that strong world demand for farm products would cause food prices to continue to outpace the overall rate of inflation. How- — o ever, rather than rising, the relative price of farm H M HH i i i » 20 products fell steeply in the early 1980s, and price 1978 1980 1982 1984 increases for consumer foods lagged noticeably behind the general rate of inflation. Monthly data. Much of this turnabout for prices of food had its origins in the changing supply and demand quate because inventories had been at such high situation for farm crops. Crops were enormous in levels; and at the end of 1983, the index of prices both 1981 and 1982. By 1982, the production of received by farmers still had not recovered to the corn was up more than 40 percent from the level of lafe 1980 (chart 10). previous record level set in 1975. Production of wheat and soybeans also rose to exceptionally high levels in 1981 and 1982. But, at the same THE OUTLOOK FOR INFLATION time that output was rising, demand for farm products was weakening. The volume of U.S. Economic forecasters currently hold a wide farm exports, which had more than doubled range of views concerning the outlook for infladuring the 1970s, fell sharply during 1981 and tion, running the gamut from predictions of 1982 and remained low in 1983 in face of the roughly unchanged inflation rates to expectastrong dollar and weak world demand. Growth of tions of as much as a doubling of the recent pace domestic demand, particularly for meats, was by the end of the year. Many observers agree, hampered by the back-to-back recessions of the however, that the period just ahead will be early 1980s. critical in determining the prospects for further With production outpacing demand by a wide disinflation over the next several years. * margin, the accumulation of farm inventories in A number of influences currently are working 1981 and 1982 was sizable. The federal govern- to limit inflation and should remain favorable in ment, in the end, purchased much of the excess the near term. The principal factor is the still for the stockpiles of the Commodity Credit Cor- considerable slack in labor and product markets. poration. As a result, the policies of the federal The prevailing rate of capacity utilization in government, rather than market forces, played a manufacturing, at 82.3 percent in April, indicates dominant role in the determination of farm that, in the aggregate, unused capacity is suffiprices. cient to meet reasonable growth in demand in the To avoid further costly accumulation of gov- near term. In labor markets, the unemployment ernment-held farm stocks in 1983, the govern- rate remains above prerecession levels and is ment offered farmers strong incentives to remove currently higher than the range that most econocropland from production under the payment-in- mists feel is capable of generating sustained kind (PIK) program. As a result, the number of upward pressures on wages. acres planted to crops fell about 15 percent from Over the longer run if real output were to 1982, and a severe drought that began around continue to grow much faster than labor and midyear further curtailed crop prospects. Total capital resources, a pickup in inflation would be crop production, as measured by the Agriculture inevitable. Indeed, the strength of the recovery Department's index of farm crop output, fell has pushed production in several industries close more than 25 percent from its 1982 level, and to full capacity and has led to appreciable price crop prices rose sharply. Even though output increases for those products. The most notable had fallen so far, total supplies remained ade- examples are paper products, gypsum board, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

490 Federal Reserve Bulletin • June 1984 electronic components. As the recovery pro- inputs, lessen pressure on domestic competitors ceeds, tighter capacity is likely to characterize a to limit price increases, and perhaps raise nomiwider range of products, with a more general nal wage demands in an attempt to offset an potential for upward pressure on prices. In addi- accompanying decline in real incomes. tion to the evidence on capacity utilization, pur- Near-term prospects for prices in the agriculchasing managers are reporting slower deliveries tural sector are likely to be shaped by two key from their suppliers, accompanied by more fre- influences. First, cutbacks in livestock invenquent price increases for the materials and inputs tories that now are under way suggest that meat that they purchase. Measures of spot commodity supplies will decline in coming months; in the prices also have recorded sharp increases over past, such declines usually have caused meat the past year and a half. Although such a re- prices to rise significantly faster than the overall bound is a typical cyclical occurrence, it does rate of inflation. Second, inventories of some suggest a marked tightening in the markets for farm crops are at particularly low levels, and if industrial materials. the weather were to be as unfavorable this year Developments in the labor market also high- as it was last summer, depleted stocks would light the uncertainties in assessing the longer-run provide only a small buffer to offset a shortfall in outlook. Although continuing pressures from production and prevent substantial price inderegulation and international competition may creases. The outlook for food prices, therefore, help to hold down wages in some industries, is more precarious than it has been during much many previously endangered corporations are of the past three years. now in better shape, and most of the concessions Although the risks remain substantial, the outin wage bargaining are probably over. The de- look for petroleum markets is somewhat ferred increases negotiated in collective bargain- brighter, owing to the considerable excess capacing settlements during 1982 and 1983 were in ity still available. The end of the recent recession most cases quite small, and thus they should help likely will mean increased oil sales by OPEC, but hold down overall wage increases in the near the substantial excess productive capacity of term. But attempts fully to restore concessions OPEC members should continue to inhibit price on compensation or work rules, or to negotiate increases. Political events could, of course, oblarge increases in anticipation of higher inflation, scure the more fundamental economic problem would boost costs and lead ultimately to bigger of oversupply of oil. For instance, any widening price increases. of the Iran-Iraq war that would cause a signifi- The increase in the Social Security payroll tax cant interruption of oil from the Persian Gulf effective at the beginning of this year, and anoth- could bring sharp price increases. Conversely, er, smaller increase scheduled for next year, also cessation of the conflict between these two counwill contribute to higher labor costs, at least in tries could presage their reestablishment as mathe short run. Although the ultimate incidence of jor oil exporters and further compound OPEC's payroll taxes remains debatable, employers ap- problem of resisting downward price pressures. pear at first to treat the portion they pay much as The prices for other energy products likely will they do other costs. As a result, the rise in these follow the general trend in petroleum prices. costs is likely to be shifted forward, at least Natural gas prices, in particular, will probably partly, in the form of higher prices. not rise rapidly in the absence of some increase The foreign exchange value of the dollar adds in crude oil prices. to uncertainty in the inflation outlook. If the Although even more difficult to measure than dollar maintains its current level, the external many of the factors discussed above, inflation sector is unlikely to be a source of an accelera- expectations are another key ingredient in the tion in inflation. In contrast, a sizable drop in the outlook for price and wage determination. A value of the dollar could generate significant break in the psychology of continued high anticiupward pressure on prices: in a reversal of the pated rates of price increase apparently aided the experience of the early 1980s, a declining dollar steady reduction of inflation between 1980 and could raise the prices of imported products and 1983. Only when behavior in labor and product Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Recent Behavior of Inflation 491 markets is predicated on the expectation of con- target ranges for the monetary and credit aggretinued low rates of inflation can the lower rates gates by the Federal Open Market Committee. of inflation, in fact, be sustained without incur- At its meeting in January 1984, the Committee ring further costs in economic slack. The recent reaffirmed its commitment to monetary restraint. survey evidence showing that inflation expecta- Fiscal policy also had an important influence tions may have risen a bit points up the uncer- on the economic recovery over the past year and tainty surrounding the influence of expectations a half. The high-employment budget deficit, of future inflation on current wage- and price- which measures the impact of discretionary fissetting behavior. cal policy, increased in each of the last three Finally, the most fundamental element under- years, largely because of a series of tax reduclying the outlook for price and wage develop- tions that were not matched by restraints on ments is the commitment of economic policy- expenditures. Furthermore, debt service costs makers to a further unwinding of inflation. A rose sharply with the accumulation of successive critical component of macroeconomic policy is large deficits. Over time, continued efforts to the rate of growth of money and credit. Over reduce fiscal stimulus must accompany efforts to long periods, the money stock and prices, on control the growth of money and credit if the average, tend to move together. The broad con- nation is to sustain progress on inflation while sistency between inflation and the growth of maintaining a healthy, balanced economic exmoney and credit underlies the establishment of pansion. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

492 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period Febru- February that some internationally oriented inary through April 1984, is the twenty-third of a vestors were already reducing the share of dolseries providing information on Treasury and lar-denominated assets in their portfolios in favor System foreign exchange operations to supple- of the German mark and other foreign currenment the regular series of semiannual reports cies. Earlier in the year, when U.S. stock prices that are usually issued each March and Septem- faltered while stock markets in Germany and ber. It was prepared by Sam Y. Cross, Manager Japan were experiencing net inflows and were of Foreign Operations of the System Open Mar- rising to set new records, talk spread that invesket Account and Executive Vice President in tors had made substantial net sales of U.S. charge of the Foreign Group of the Federal equities. Doubts were voiced about whether the Reserve Bank of New York. dollar's exchange rate could be sustained without a sharp rise in U.S. interest yields. Although The dollar declined modestly on balance over the U.S. interest rates rose modestly in February in three months ended in April. It dropped through response to strong credit demand, market particthe first five weeks of the period, but later rose ipants were uncertain how the Federal Reserve against the major foreign currencies to offset would respond if the demand for credit continued much of its earlier move. to mount. Under these circumstances, the in- The dollar's fall early in the period occurred creases in interest rates already under way were amid indications that the incentives for capital flows might be shifting away from dollar-denominated assets. News of strengthening foreign in- 1. Federal Reserve reciprocal currency arrangements dustrial activity and orders, especially in Ger- Millions of dollars many, generated expectations of rising earnings Amount of facility Amount of facility abroad where inflation remained low. Thus the Institution April 30, 1983 April 30, 1984 climate for growth and investment abroad was Austrian National Bank 250 250 improving. At the same time, the U.S. economy National Bank of Belgium . 1,000 1,000 Bank of Canada 2,000 2,000 showed unexpected buoyancy well into 1984, National Bank of Denmark 250 250 and market participants came to focus on the Bank of England 3,000 3,000 Bank of France 2,000 2,000 risks for the dollar of a potential overheating of German Federal Bank 6,000 6,000 Bank of Italy 3,000 3,000 the domestic economy. Following the Presi- Bank of Japan 5,000 5,000 dent's State of the Union address and budget Bank of Mexico Regular facility 700 700 message, participants in the financial markets Special facility 325 (') Netherlands Bank 500 500 increasingly questioned the implications of grow- Bank of Norway 250 250 ing U.S. fiscal deficits. Market participants also Bank of Sweden 300 300 Swiss National Bank 4,000 4,000 questioned the financing of the U.S. current Bank for International Settlements: account deficit, especially after public officials Swiss francs-dollars 600 600 expressed concern about extended dependence Other authorized European currencieson foreign capital inflows and the vulnerability of dollars 1,250 1,250 the dollar to a potential shift in investor senti- Total 30,425 30,100 ment. 1. Facility, which became effective August 30, 1982, expired on Against this background, reports circulated in August 23, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

493 2. Net profits or losses on U.S. Treasury and perceived to be widening in favor of the United Federal Reserve current foreign exchange States, and these perceptions were a factor unoperations derpinning the dollar in the exchanges. Concerns Millions of dollars over the financing of U.S. current account deficits receded, and the announcement of two more U.S. Treasury FFeeddeerraall record monthly deficits in U.S. international PPeerriioodd RReesseerrvvee Exchange General trade received little notice in the exchange mar- Stabilization Fund account kets. In addition, the dollar was supported by labor February 1 through April 30, 1984 0 0 0 conflicts in several countries in Europe, which Valuation profits and losses on outstanding assets and received increasing attention during April and liabilities as of April 30, 1984 -860.6 - 586.1 0 brought into question the immediate outlook for continued economic recovery there. In particular NOTE. Data are on a value-date basis. the prospect of strikes in Germany, resulting from a major union's call for shorter hours and viewed in the market more as a sign of pressure higher pay, raised new worries about the investagainst the dollar than as a source of support. ment climate there and contributed to a weaken- In this context, the belief spread that the dollar ing of German stock prices. Talk of shifting out had begun a long-awaited and potentially sus- of U.S. assets subsided and inflows to U.S. tained decline, encouraging a pronounced shift of equities resumed. both professional positions and commercial leads As the dollar rose in April, its movement and lags in favor of foreign currencies. These gained momentum from professional positioning shifts added to the momentum of the dollar's based on technical models and a reversal of decline throughout February and early March, commercial leads and lags. It closed the period which by the first week in March brought the under review only 3 to 3V4 percent lower against dollar down 13 percent compared with its high in European Monetary System (EMS) currencies early January against the German mark, and and the Japanese yen. In terms of the Swiss about 7 percent lower in terms of a trade-weight- franc, the dollar's value was little changed comed average. pared with the level at the end of January; After early March, the dollar's fall came to an against the pound sterling and Canadian dollar it abrupt halt, and dollar exchange rates rose more closed somewhat higher on balance. The dollar's or less steadily until the end of the period under average decline in trade-weighted terms came to review. Reports of progress in efforts by the about 2 percent for the three months as a whole. Congress and the administration to agree on a The U.S. authorities did not intervene in the "down payment" package of budget cuts lent exchange markets during the period under resome support to the dollar. Also, as U.S. market view and extended no new credits through forinterest rates climbed during March and April, eign exchange swap arrangements. The Bank of observers concluded that the increases were Jamaica repaid on March 2 the $10 million it had unlikely to be resisted by the monetary authori- drawn against the U.S. Treasury temporary ties, inasmuch as these increases reflected a swap facility on December 29, 1983, and this continuing buildup of credit demands generated facility then expired. oy the strong domestic expansion. By the time On March 30 the U.S. Treasury announced tjlhe Federal Reserve announced a rise of one-half that it would participate in an arrangement to Percentage point in its discount rate to 9 percent, support the efforts of the government of Argeneffective April 9, market participants had be- tina to put into place an economic adjustment come convinced that the U.S. authorities were program backed by the International Monetary prepared to accept yet higher rates. Fund (IMF). The Treasury's participation con- Meanwhile, yields in foreign centers remained sisted of agreeing to extend temporary swap steady. With little or no acceleration in U.S. credits of up to $300 million to Argentina when price indexes, real interest differentials were agreement on an economic adjustment program Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

494 Federal Reserve Bulletin • June 1984 is reached between Argentina and the IMF. $860.6 million for the Federal Reserve and $586.1 Argentina would repay any such drawings on the million for the ESF. (Valuation gains and losses Treasury using proceeds of IMF drawings. This represent the increase or decrease in the dollar undertaking was part of a $500 million financing value of outstanding currency assets and liabilpackage that was used to pay certain interest ities, using end-of-period exchange rates as comarrears. The $500 million package consisted of pared with rates of acquisition.) These valuation the following: $300 million of credits extended to losses reflect the fact that the dollar has appreci- Argentina by the governments of Mexico, Vene- ated since the foreign currencies were acquired. zuela, Brazil, and Colombia, to be repaid upon The Federal Reserve and the Treasury invest Argentina's drawing from the U.S. Treasury; foreign currency balances acquired in the market $100 million of additional credits extended by as a result of their foreign exchange operations in certain of Argentina's commercial bank credi- a variety of instruments that yield market-related tors; and $100 million provided from Argentina's rates of return and that have a high degree of resources. quality and liquidity. Under the authority pro- In the period from February through April, the vided by the Monetary Control Act of 1980, the Federal Reserve and the Exchange Stabilization Federal Reserve had invested $1,528.0 million of Fund (ESF) of the Treasury realized no profits or its foreign currency resources in securities issued losses from exchange transactions. As of April by foreign governments as of April 30. In addi- 30, cumulative bookkeeping, or valuation, losses tion, the Treasury held the equivalent of $1,852.4 on outstanding foreign currency balances were million in such securities as of the end of April. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

495 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces- Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of Govwide range of economic and financial subjects. ernors, by the Federal Reserve Banks, or by the In some instances the Federal Reserve System members of their staffs. finances similar studies by members of the aca- Single copies of the full text of each of the demic profession. studies or papers summarized in the BULLETIN From time to time, papers that are of general are available without charge. The list of Federal interest to the professions and to others are Reserve Board publications at the back of each selected for the Staff Studies series. These pa- BULLETIN includes a separate section entitled pers are summarized—or, occasionally, printed "Staff Studies" that lists the studies that are in full—in the FEDERAL RESERVE BULLETIN. currently available. STUDY SUMMARY ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDELINES, AND THE LIMITS OF CONCENTRATION IN LOCAL BANKING MARKETS Jim Burke—Staff, Board of Governors Prepared as a staff study in late 1983. The logical implications of using the current The principal finding of the study is that appli- Justice Department guidelines on horizontal cation of these guidelines to local banking marmergers as a basis for merger policy in the kets, as traditionally defined by bank regulatory commercial banking industry are examined in agencies, could result in a massive consolidation this study. Recent judicial decisions clearly indi- of banking resources in these areas. Consolidacate that to be denied, a proposed merger must tion would be most pronounced in the larger result in anticompetitive effects serious enough metropolitan areas of the country. The 6,585 to be considered an antitrust violation. Even banking organizations that operate at present in though the antitrust laws do not specify exactly metropolitan areas could be reduced to a total of what constitutes an antitrust violation, presum- 1,801. The average number of banks in all ably bank regulatory agencies could legally sup- SMSAs would fall from 20.7 to 5.7. All but 31 of port the denial of merger proposals that would the 1,219 banks that now operate in the 7 largest result in combinations of market shares in excess SMSAs in the country could be merged. Postof the limits specified in the current Justice simulation, the greatest number of banks in any Department guidelines on horizontal mergers. SMS A would be 8, and this number would oper- This study simulates merger activity in each of ate in only 9 SMSAs. the 318 SMSAs and the 2,408 non-SMSA coun- Potential merger activity is not nearly so great ties in the United States under the assumption in county markets as in SMSAs because so few that horizontal mergers in accordance with the banks typically operate in these essentially rural Justice Department guidelines are permitted. areas. Only about one-third (860) of the counties Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

496 Federal Reserve Bulletin • June 1984 in the country would be likely to have merger now highly concentrated. Following the simulaactivity of any consequence. These 860 counties tion, every one of the top 50, 97 of the top 100, now have an average of 7 banks, with a range of 5 and 139 of the top 150 would be classed as highly to 22. After the merger simulation, the average concentrated. (The top 150 SMS As include those number would fall to 5.6, with a range of 3 to 10 in which as few as 14 banks currently operate.) banks. Even though the degree of consolidation Thus, if the regulatory agencies allowed mergers in smaller rural markets would not be so great as in accordance with these guidelines, virtually in metropolitan areas, greater numbers of merg- every metropolitan banking market in the couners would be acceptable in those rural markets try would be highly concentrated by Justice that at present have the highest concentration. Department standards. The results of the study suggest that strict The author concludes, however, that unfetapplication of the current Justice Department tered bank mergers will not necessarily result in guidelines could dramatically increase levels of the small number of banks per market indicated concentration in virtually every one of the 318 by the mechanical application of the Justice SMS A banking markets in the country. At pre- Department guidelines. The study is a "what if' sent, only one of the top 25 SMS As (ranked by simulation designed to determine the possible number of banks) is highly concentrated. All 25 consequences of using a particular set of guidewould become highly concentrated following the lines. In reality, many small banks, which have simulation. Similarly, only 10 of the top 50, 22 of been shown to be quite profitable, would continthe top 100, and 36 of the top 150 SMS As are ue to survive, and de novo entry could also occur in many highly concentrated markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

497 Industrial Production Released for publication June 15 industrial output in May was 13 percent higher than a year ago and 21 percent above the Novem- Industrial production increased an estimated 0.4 ber 1982 trough. percent in May following a revised rise of 1.1 In market groupings, overall output of conpercent in April. The gain in April previously had sumer goods was unchanged in May, with an been estimated at 1.4 percent. In May, produc- increase of 0.3 percent in the production of home tion advanced moderately in most industries, goods, a small decline in the output of automoalthough there was a slight decline in the output tive products, and little change in the output of of autos. At 163.2 percent of the 1967 average, nondurable consumer goods. Autos were assem- 1967=100 1967 = 100 ~ TOTAL INDEX - 170 170 150 130 1 1 1 l I 1 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: May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

498 Federal Reserve Bulletin • June 1984 1967 = 100 Percentage change from preceding month Percentage change, Grouping 1984 1984 May 1983 to May Apr. May Jan. Feb. Mar. Apr. May 1984 Major market groupings Total industrial production 162.5 163.2 1.5 .9 .5 1.1 .4 13.0 Products, total 162.6 163.3 1.5 .4 .4 .9 .4 11.7 Final products 160.3 161.0 1.5 .3 .4 1.1 .4 11.4 Consumer goods 161.7 161.7 1.1 -.1 .4 1.1 .0 7.5 Durable 162.4 162.4 3.0 -.6 .3 -.4 .0 11.6 Nondurable 161.4 161.5 .4 .2 .4 1.6 .1 6.0 Business equipment 173.8 175.4 2.0 .7 .2 .9 .9 18.8 Defense and space 132.7 133.8 2.1 .9 .4 2.1 .8 13.8 Intermediate products 171.3 171.8 1.5 .7 .8 .6 .3 12.9 Construction supplies 160.4 160.3 2.6 .7 1.7 .7 -.1 15.8 Materials 162.3 163.1 1.4 1.8 .7 1.1 .5 15.1 Major industry groupings Manufacturing 164.1 164.7 1.7 1.2 .4 1.2 .4 13.5 Durable 153.2 154.0 2.5 1.3 .5 1.3 .5 17.6 Nondurable 179.9 180.2 .7 1.1 .3 1.2 .2 8.9 Mining 122.8 125.0 .9 -.6 -.2 -.8 1.8 10.8 Utilities 179.5 180.5 -.8 -2.5 2.0 -.3 .6 6.4 NOTE. Indexes are seasonally adjusted. bled at a seasonally adjusted annual rate of 7.6 als showing smaller increases than in April. million units, slightly lower than the April pace. Output of energy materials, however, rose after a Production of business equipment increased 0.9 small decline in the previous month. percent in May, due largely to an increase in oil In industry groupings, manufacturing producand gas well drilling activity, which had declined tion increased 0.4 percent, with gains of 0.5 in each of the four preceding months. Output of percent in durables and 0.2 percent in nonduraconstruction supplies was about unchanged, but bles. Mining output increased sharply—1.8 perproduction of general business supplies in- cent—reflecting increases in coal production as creased further. well as the turnaround in oil and gas well drilling Output of materials advanced 0.5 percent in activity. Production by utilities increased 0.6 May, with both durable and nondurable materi- percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

499 Statements to Congress Statement by Lyle E. Gramley, Member, Board in the rise of interest rates since late last year? of Governors of the Federal Reserve System, The answer is, I believe, a minor one. before the Subcommittee on Domestic Monetary During late spring 1983, the Federal Reserve Policy of the Committee on Banking, Finance did take steps to slow the growth of Ml and M2 and Urban Affairs, U.S. House of Representa- from the very high rates that had prevailed in the tives, June 8, 1984. latter half of 1982 and early 1983. It did so in the context of growing evidence that the economic I am glad to appear before this subcommittee to recovery was robust and that the velocity of present the views of the Federal Reserve Board money, particularly that of Ml, was returning to on the behavior of interest rates this year. My more normal patterns. In that context, those remarks will focus on the principal causes of the policy actions were effective in slowing the annurecent rise in interest rates and the implications al growth rate of Ml to IVA percent, and the of this rise for the overall expansion of the growth rate of M2 to about 8 percent, from the economy. My colleague, Karen Horn, President second- to the fourth-quarter average of last of the Federal Reserve Bank of Cleveland, will year. discuss the effects of the increase in interest rates In February, the Federal Reserve announced on economic conditions in the Fourth Federal growth ranges for 1984 of 4 to 8 percent for Ml, 6 Reserve District. to 9 percent for M2 and M3, and 8 to 11 percent Interest rates have moved substantially higher for the debt of domestic nonfinancial borrowers. this year. Short-term rates have risen about 1 to When these ranges were announced, most ob- IV2 percentage points since December. In long- servers considered them appropriate to support term markets, rate increases on Treasury and the nation's economic expansion without jeoparcorporate bonds have been as large as those on dizing progress against inflation. That judgment short-term securities. Increases in rates on mort- is still, I believe, correct. gages have been somewhat more moderate. From the fourth quarter of last year through A rise in interest rates in an expanding econo- the first four weeks of May, Ml increased at an my is not unusual. As chart 1 illustrates, interest annual rate of about 7 percent—about equal to its rates typically increase during periods of eco- rate of increase in the second half of last year nomic expansion, when growing demands for and in the upper half of the target range for money and credit press against limited supplies.1 1984. Interest rate patterns during the first 1 Vi years of From the fourth quarter through April—the expansion do differ. Nevertheless, the chart sug- latest month for which data are available—M2 gests that the rise in short-term rates during the had increased at a 63/4 percent annual rate, in the current expansion has not been exceptional. The lower half of its range and a little slower than in increase in long-term rates during the first year the second half of last year. M3 growth, on the and a half of this recovery is, however, quite other hand, accelerated to a 9V2 percent annual large relative to the experience of the past 30 rate, above the upper end of its range and above years. the rate of expansion in the second half of 1983. What role, if any, has monetary policy played These patterns of change in the monetary aggregates do not support the contention that monetary restraint has played any substantial role in the rise of interest rates this year. 1. The attachments to this statement are available on A more likely source of the upward pressure request from Publications Services, Board of Governors of on interest rates is the explosion that has octhe Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

500 Federal Reserve Bulletin • June 1984 curred in demands for credit, generated in the models of a monetarist persuasion, such as the main by the strength of economic expansion. In well-known model of the Federal Reserve Bank nominal terms, gross national product rose at an of St. Louis. annual rate of more than 10 percent in the latter The state of knowledge is not sufficiently adhalf of 1983, and the pace of expansion increased vanced to permit precise estimates of the effects further to an annual rate of almost 13 percent in of increasing deficits on interest rates. But the the first quarter of 1984. By late last year, the magnitudes are apparently not small when fiscal growth of total credit extended to domestic non- stimulus occurs on the scale we have seen in financial borrowers was near the upper end of recent years. Since fiscal 1981, the structural the Federal Reserve's monitoring range. The deficit in the federal budget—that is, the deficit growth rate of such debt has risen still further, to that emerges when federal receipts and expendiabove the upper end of the monitoring range, in tures are adjusted for the cyclical position of the the early months of 1984. economy—has risen about $100 billion. Such an Demands for private credit typically strength- increase, according to some econometric moden as recovery proceeds, and this recovery has els, may have raised interest rates 2 percentage been no exception. In the private domestic nonfi- points or more, other things equal. nancial sectors, the growth of debt has moved Longer-range developments in financial marprogressively upward, from an annual rate of 6 kets have also played a role in the behavior of percent in the first quarter of 1983 to a rate of interest rates during the current recovery. Over nearly 12 percent in the first quarter of 1984. the past three decades, and especially over the Consumer installment debt rose at a 17 percent past five to ten years, innovation and deregulaannual rate in the first quarter: mortgage borrow- tion of U.S. financial markets have increased the ing remained strong, and demand for business mobility of funds from one region of the country credit strengthened substantially further. While to another and from one market to another. They some business borrowing this year has been to have removed nearly all of the legislative and finance takeovers and other forms of reorganiza- regulatory impediments to payment of markettion, underlying demands for business credit related rates of interest to savers. Most imporhave also increased—as growing outlays for in- tantly, they have led to a breaking down of usury vestment in inventories and plant and equipment ceilings and other artificial barriers to credit have outpaced the internal generation of funds. flows that used to play so prominent a role in the While an increase in credit use by private rationing of available supplies of credit among borrowers is normal during an economic expan- potential borrowers. In the financial world we sion, sustained heavy credit demands by the live in now, the rationing of credit is done federal government are not. Historically, the primarily by interest rates. As a consequence, federal deficit and borrowing have dropped off interest rates in a period of economic expansion rapidly in an expansion, as growth in private are forced to much higher levels—even after income leads to higher tax receipts, and federal adjustment for inflation—than we were accusspending slows for a variety of income support tomed to seeing in the 1960s and the 1970s. programs. When Treasury borrowing remains as In this context, the prospect that structural huge as it is currently, competition between public federal budget deficits might increase substanand private borrowers is bound to intensify. tially further—as they will under current law— Both traditional economic theory and common has serious implications for long-term interest sense suggest that increases in government rates. Potential investors in long-term securities spending, or reductions in taxes, tend to stimu- cannot be sure from past experience how high late the economy, raise total credit demands interest rates will have to go to balance supplies relative to supplies, and push up interest rates. and demands for credit at a level appropriate to There is a large body of empirical evidence maintaining a sustainable pace of economic exsupporting that view. Econometric models by pansion and to avoiding a resurgence of inflation. the dozens have been constructed that find sig- Failure of the federal government to take prompt nificant effects of fiscal stimulus on the real and decisive action to reduce structural deficits economy and on interest rates. They include adds powerfully to their concerns. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 501 Participants in financial markets now widely encountered in 1980, 1981, and 1982. Our thrift expect that a down payment on deficit reduction institutions are still in a weakened condition. will be accomplished this year. They are under- Equally worrisome is the effect of rising interest standably concerned, however, because the rates on the prospects for managing the external amounts of deficit reduction currently being dis- debt-servicing problems of developing countries. cussed for the near term are so small relative to Many of these countries, with the advice and the size of the problem. Under current law, the assistance of international lending organizations, structural deficit will increase about $25 billion in are attempting to put in place domestic economic fiscal 1985. The two bills before the Congress policies that will generate both cash and confiprovide for deficit-reducing measures of between dence to help them attract capital and meet their $25 billion and $30 billion in the upcoming fiscal obligations. It is of utmost importance to us, as year—that is, about enough to keep the problem well as to them, that they succeed in this endeavfrom getting worse. Thus, unless the Senate- or. A rise in interest rates makes this task more House conferees adopt stronger measures of difficult. deficit reduction for fiscal 1985, the near-term You ask, Mr. Chairman, what policies could effects of the fiscal down payment on the econo- be followed to foster lower interest rates and my and on financial markets are likely to be quite sustain economic growth. I doubt that my ansmall. swer will surprise you. What needs to be done is Let me turn now to your question regarding to act promptly, and decisively, to reduce structhe effects of the rise in interest rates on the tural deficits in the federal budget. Let me note, economy. It seems evident that some slowing in in this respect, that the fiscal "down payment" the pace of expansion is likely to result from the presently under discussion in the Congress is a higher costs of credit, and the sectors most likely necessary first step in developing a fiscal policy to be affected are those—such as housing—in suited to our needs. But it is only a first step in a which dependence on credit is heavy and de- larger effort that needs to begin very soon. mands are therefore sensitive to rising interest Attempts to lower interest rates by speeding rates. How much the economy will slow is hard up the growth of money and credit would, under to judge at this juncture, given our limited knowl- present circumstances, be a serious mistake. The edge of the relationship between interest rates economy is growing strongly; total credit deand economic activity in today's environment. A mands are extremely large; the federal budget is considerable moderation from the very rapid badly out of balance; our merchandise trade and pace of real economic growth in the first quar- current account deficits are enormous; inflation, ter—nearly 9 percent at an annual rate—is neces- although not yet accelerating, is still proceeding sary if we are to sustain this expansion over time. at an annual rate of 4 to 5 percent. If people here It seems likely, however, that economic growth and abroad gained the impression that the Federwill not slow so much as to prevent further al Reserve had "thrown in the towel" in its progress in reducing unemployment, because the efforts to keep money and credit growing at a basic forces of economic expansion are still quite reasonable pace, we would be faced, in my strong. judgment, with potentially chaotic conditions in Quite apart from their effect on overall eco- financial markets. nomic growth, the effects of rising interest rates Let me assure you that we in the Federal are very worrisome. High interest rates relative Reserve have no intention of proceeding on such to those abroad have pushed up the value of the a course of action. We are supplying enough dollar in exchange markets, contributing to ex- money and credit to finance a sustainable rate of traordinarily large deficits in our merchandise economic expansion, and we intend to continue trade and current accounts. Higher interest rates doing so. But we do not intend to waste the add to the already serious problems faced by substantial gains in the battle against inflation farmers. Small businesses more generally have that have been won at such enormous cost during only begun to recover from the difficulties they the past few years. • Additional statement follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

502 Federal Reserve Bulletin • June 1984 Statement by Karen N. Horn, President, Federal more sobering effect upon the strength and the Reserve Bank of Cleveland, before the Subcom- character of the current expansion in the Fourth mittee on Domestic Monetary Policy of the Com- District than will the immediate consequences of mittee on Banking, Finance and Urban Affairs, the recent increases in rates. U.S. House of Representatives, June 8, 1984. The pattern and composition of the national economic recovery is, of course, the most impor- It is a pleasure for me to appear before this tant element shaping local economic recoveries. subcommittee today. The hearing you have The current U.S. recovery has turned out to be scheduled deals with important issues—issues substantially more vigorous than most analysts that will have a major effect upon national eco- had anticipated. In the first quarter of 1984, gains nomic performance in the years ahead and will in employment and production accelerated at determine whether we as a nation will succeed in near-record rates. Over the past year or so, the our efforts to restore prosperity in an inflation- recovery in the Fourth District has maintained its free environment. The outcome of these issues typical relationship with the national recovery will in time have a profound influence on the (chart l).2 This has been a very pleasant surprise success of the efforts under way to improve to me, given the depth of the 1981-82 recession productivity, and to restore the competitive posi- and the intense structural and competitive probtion of our industries and their workers. lems of the District's traditional industries. The Governor Gramley has dealt with the factors regional impact of a national recovery is largely that underlie the recent increases in interest determined by the industrial structure of the rates. I am in agreement with the views that he region. As you know so well, the Fourth Dishas expressed. I would like to use the time trict's economic base is concentrated in manuavailable to me to touch upon some of the effects facturing, particularly in the production of proof interest rates on the recovery in the Fourth ducer and consumer durable goods. In 1983, Federal Reserve District and then to indicate in a nearly 18 percent of nonfarm employment in the general way why rising interest rates seem to me Fourth District was dependent upon these goods, to be symptomatic of some of the underlying in contrast with 12 percent nationally. issues that confront private and public decision- The Fourth District's current economic recovmakers.1 Before I begin, I want to point out that ery so far has also been typical of its past the increases in interest rates are quite recent. It recoveries, at least in an aggregate sense. Total is possible, indeed some feel probable, that a nonagricultural employment in Ohio, which is significant moderation in the pace of the econom- quite representative of the Fourth District, has ic expansion will result from rising rates. expanded at virtually the same pace, since the There has, nevertheless, been a substantial trough in November 1982, as it has on average increase in uncertainty about the future course of over past recoveries. Employment gains in the the expansion, especially in the traditional capi- District lag by several months the nation's emtal goods industries, residential construction, ployment expansion because of the District's and industries confronting intense import compe- specialization in capital goods industries. For the tition. People are, in effect, saying that what we most part, past experience would suggest more have feared is here—the combined private and rapid employment expansion in the Fourth Dispublic credit demands cannot be satisfied within trict, relative to the nation, in the later phases of the constraints of a noninflationary monetary economic recovery as capital investment accelpolicy. Interest rates are therefore rising, and erates. However, a disturbing feature of the unless the basic underlying causes are dealt with District's current employment expansion is that in the future, further increases cannot be ruled our unemployment rate remains 2 to 3 percentout. This realization and the uncertainty of the age points above the national average. At similar eventual outcome may, in my view, have a far stages of past recoveries, the unemployment rate 1. The Fourth Federal Reserve District includes the state 2. The attachments to this statement are available on of Ohio, western Pennsylvania, eastern Kentucky, and the request from Publications Services, Board of Governors of northern panhandle of West Virginia. the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 503 in the District was typically equal to or below the room for expansion, particularly in those national rate. The gap is reflected most dramati- branches important to the Fourth District, such cally in some of the District's urban areas. Pitts- as machine tools, in which shipments have been burgh and Johnstown, Pennsylvania; Wheeling, rising slowly and most recently were only 5 West Virginia; and Youngstown, Ohio, for exam- percent above year-ago levels. ple, have experienced only sluggish employment This spillover is important because the recovgrowth and have unemployment rates ranging ery in capital equipment investment, while one of from 3 to 6 percentage points above the national the strongest in the postwar period, has been less level. The unemployment gap is unlikely to close beneficial to the producers of traditional capital until some of the underlying structural problems goods concentrated in the District. The recovery of the District are solved—once again, the indus- in capital equipment investment has largely been trial structures of these areas, characterized by located in high-technology or information-procsingle-industry dominance, are largely responsi- essing equipment, the continuation of a trend ble for the weakness of these local recoveries. firmly in place for at least a decade. Vehicles and Furthermore, a closer examination of specific machinery, for example, which once accounted industries suggests that imbalances in the Dis- for about $0.60 of every dollar invested in equiptrict's recovery are masked by the total employ- ment, now account for $0.38 of the investment ment data. For example, virtually all of the gains dollar. Information-processing equipment, inin local manufacturing employment can be attrib- cluding communication equipment, office mauted to a strong auto recovery. Transportation chinery, and instruments, currently accounts for equipment and primary metals have accounted $0.47 of every investment dollar compared with for roughly 50 percent of gains in manufacturing about $0.20 in 1972. Since the District is still employment since November 1982, although concentrated in traditional capital goods, its intheir share in employment is roughly 25 percent. dustries have been receiving a smaller piece of Other manufacturing industries and most non- the investment pie. manufacturing industries have not kept pace in Another disquieting feature of the recovery, this recovery. not only from the Fourth District's vantage point The distribution of employment gains in the but also from the nation's, has been the sharp District to a large extent reflects the pattern of deterioration in U.S. merchandise trade. The the national recovery. The first year of recovery U.S. trade deficit equaled $69.4 billion in 1983, was dominated by employment gains in consum- compared with $42.7 billion in 1982. In the first er durable goods industries, particularly in the four months of this year, the trade deficit has automotive industry. Plants producing medium- been running at an annual rate of $126 billion. and full-sized autos—the mix of cars consumers Some deterioration in the trade balance would, increasingly want to purchase—have been at of course, be quite normal because last year the near-full capacity for some time. Likewise, Dis- U.S. economy recovered sooner, and much trict steel plants that produce sheet steel for the more strongly than the economies of most of our auto industry have been operating virtually at full trading partners. However, the deterioration in capacity, while other steel-product lines have the U.S. trade balance during the current recovremained at depressed levels. Normally one ery has been extremely severe because of interwould expect the consumer phase of the recov- national debt problems, the economic adjustery to slow, and the investment phase of the ment programs adopted abroad, and the recovery to carry the bulk of the District's recov- exchange rate of the dollar. ery in its second year. Thus far, nondefense Intense foreign competition has had a particucapital goods orders and spending at the national larly severe impact on industries important to the level have proceeded at an above-normal pace, District's economy, especially steel, automosuggesting that employment gains in local capital biles, and machine tools. For capital goods as a goods industries could materialize in 1984 at whole, the figures suggest a significant deteriorarates at least comparable with past recoveries. tion in our competitive position. Since 1972 Capacity utilization rates in nonelectrical ma- imports of capital goods have expanded at twice chinery—at 75 percent in April—allow ample the rate of exports of similar items. Imports of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

504 Federal Reserve Bulletin • June 1984 machinery have also risen more rapidly than the is, after all, the way a market economy operates. purchase of machinery from domestic producers, The puzzle is why the long-standing pattern of so that imports have taken an increasing share of slower growth relative to that of the nation has the domestic market for machinery. become more pronounced during the past two It is not correct to ascribe solely to the ex- decades. change rate the competitive problems of the Disparities in regional growth can be decomcapital goods producers in the Fourth District. posed into two forces. The first might be called a That is far from the case. The growing pressures structural element. Structural changes cause of competition both from foreign producers and some industries to expand faster than other infrom other parts of the country have been evi- dustries. Changing consumer buying patterns, dent for a couple of decades now. I will return to for example, will benefit some industries more this point a little later. But the strong dollar, than others. Structural changes of this sort inbolstered by financial and confidence factors, clude the shift of the economy from manufachas made serious problems worse. turing toward service industries and the oil crisis In spite of these disquieting features, the of the early 1970s. The energy crisis of the 1970s, strength of the recovery in the District thus far and the consequent gasoline shortage, caused an has been a pleasant surprise. It has brightened increase in demand for cars that got better gas attitudes and given hope to business and work- mileage. Our country's car manufacturers, at ers. The recent increases in interest rates, how- that time, did not have the productive capability ever, are worrisome less for their impact today to produce cars with higher gas mileage. Foreign than for their implications for the effort under car manufacturers, who were already producing way to resolve the Fourth District's long-stand- more fuel-efficient cars, took a share of our ing problems. domestic market that we have not been able to Changes in this region's economy have been regain. occurring slowly over the past few decades, but The second is a competitive element that they have accelerated in recent years. Over most causes some industries in a region to grow more of the post World War II period, industries have slowly than their counterparts elsewhere in the grown more slowly in this region than in the nation. Differences in costs and prices, for examnation as a whole. ple, can cause an industry in Cleveland to under- Communities throughout Ohio and Pennsylva- perform that same industry elsewhere in the nia assumed preeminent roles as centers of United States. heavy manufacturing during the late nineteenth The combined influence of these factors has and early twentieth centuries. Abundant local been a pronounced lag in our region's economic resources useful to manufacturing such as coal growth relative to that of the rest of the country, and iron ore, and inexpensive transportation to a lag which can be traced back for more than markets via the Great Lakes, the Ohio River, and three decades. Between 1949 and 1982, total an already well-developed railroad system, employment in Ohio increased at 1.7 percent a helped to stimulate the growth of industries such year on average, 1.5 percentage points less than as steel, fabricated metals, machinery, and, the national average of 3.2 percent. Nearly 0.4 somewhat later, transportation equipment and percentage point of the shortfall is associated electrical equipment. In the 1920s, Ohio's share with Ohio's industrial structure. Ohio's indusof national personal income and employment tries were not rapid growth industries, and this reached a peak that has never been regained. explains about one-third of the disparity. The That is not to say that the economy of this region shortfall resulting from the underperformance of has been declining since the 1920s. Good fortune Ohio's industries is much larger—about 1.1 perwas ours. Our industries were the rich and centage points. Simply put, the competitive productive ones. Productivity was high, growth weakness of Ohio's industries relative to their was rapid for years, and our early established counterparts elsewhere in the country accounts producers prospered. Employment, incomes, for about two-thirds of the shortfall. and investment grew, but rates of growth were Although these trends have been in place for a surpassed by other regions of the country. That long time, they accelerated markedly in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 505 1970s. Ohio's employment growth rates in the external financing. When rates in the capital 1970s fell behind national growth rates by more markets are high and unpredictable, businesses than 1.5 percentage points. During the 1960s are less willing to make long-term investment employment growth rates in Ohio's industries decisions. Instead, they make short-term investwere almost equal to the national standard. The ments that have short-term payouts, neglecting structural shift away from manufacturing and the the longer-term investments necessary to reduce competitive lag of most of Ohio's industries still costs. Throughout the decisionmaking process, were apparent in the 1960s, but the differential attention was diverted from productivity and the was much less pronounced. need to remain competitive. In short, the tradi- Some attribute the slowdown to relatively tional industries of the Fourth District became higher costs and to greater unionization of the the high-cost producers in their industries. labor force; others blame government regula- The need to improve costs and productivity in tions and increasing taxes; still others argue that order to restore a competitive position is now unimaginative management and old and obsolete recognized. I believe that much encouraging capital have been major contributors. These in- progress is being made, although it is not evident fluences cannot be neatly separated into their in the statistics yet, and may not be for years to relative importances, and in any event the situa- come. I see evidence of that adjustment in the tion varies among industries and across the re- attitudes of businessmen and labor. Obsolete gion. plants have been closed, but the process is not From my vantage point, however, there is complete. Changes in organization and practices another factor that is often overlooked and in the office and on the assembly line are being seems especially relevant today. The 1960s was a made. The economic recovery and the costperiod of relatively low and stable inflation and cutting efforts have improved firm and industry only minor recessions. The 1970s was a time of earnings and cash flow to the point that more high and accelerating inflation, severe reces- extensive efforts to improve productivity can be sions, and energy price shocks. The poor eco- undertaken. nomic performance of industries of the Fourth The next round of efforts will require more District in the 1970s coincided with the most investment of a capacity-expanding character. unstable and uncertain economic conditions of Financial commitments will be heavier with a the post World War II period. longer-term payoff than the cost-cutting im- For many years industries have had to deal provements of the past several years. It would be with high and varying rates of inflation and much easier to achieve the next stage of restrucconsequently high interest rates. The Fourth turing with assurance of adequate savings and a District's industries are extremely sensitive to more certain economic environment than exists interest rates and inflation. While interest rates today. And that, in my view, is the significance alone doubtless have an influence, it seems clear of recent financial developments to the economy to me that the important issues of the problem lie of the Fourth District. elsewhere. High rates of inflation have contribut- Interest rates may be viewed as the price that ed to increased production costs and have made clears a market, the market for loanable funds. it difficult to maintain profitability. Inflationary From this perspective, rates rise as credit deexpectations found their way into the labor bar- mands outstrip supply. High rates imply that gaining process, they distorted the perceived there is inadequate savings to enable businessrates of return on long-term capital investment, men, consumers, farmers, government, and othand they confused reported profit figures. Busi- ers to finance their activities. Many capital innesses invested less in new plant and equipment vestment projects that would be undertaken than they probably would have with lower infla- simply do not occur. The recent increase in tion and interest rates. interest rates is especially disheartening because The uncertainty brought on by varying rates of it suggests inadequate savings to provide the interest and inflation is particularly damaging to desired increase in the capital stock productivity our region. Our heavy manufacturing industries and increased economic well-being that we seek. are capital intensive and must, of course, rely on The rise in interest rates, in an important Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

506 Federal Reserve Bulletin • June 1984 sense, should be viewed as a symptom of more the road if present trends continue. From a basic underlying problems. Unless these prob- savings investment vantage point, the outlook is lems are resolved, interest rates are unlikely to not encouraging. If, during the remainder of the decline and may rise further. decade, net private savings continues to expand Savings is the part of current income not at its historic growth pattern, and if federal consumed; it represents resources available to borrowing follows the Congressional Budget Ofbuild capital and ensure greater future consump- fice estimates of the baseline budget deficit, the tion. Savings from the household, nonfinancial United States would experience a period of tightbusiness, state and local government, and for- ening on the funds available to expand the naeign sectors equal total savings available to fi- tion's capital stock. Since the mid-1970s, U.S. nance private investment and federal credit de- labor productivity growth has slowed; since mands. Because federal borrowing is insensitive 1977, U.S. productivity has shown virtually no to interest rates and involves no credit risk to growth. Although productivity has risen with lenders, the federal sector generally stands first recovery, the increases have not been rapid in the queue for credit market funds. Conse- enough to suggest more than an ordinary cyclical quently, over time the amount of private invest- response. The implications for the standard of ment financed depends on the growth of private living for future generations represent the true savings relative to the growth of federal credit burden of financing the federal budget deficit. If demands. society devotes more of its resources to the Although the broad concept of savings is federal sector, fewer resources are available to straightforward conceptually, its measurement is the private sector. As the recovery proceeds, it fraught with difficulty. Based on the flow of should become increasingly clear that our savfunds accounts estimates, a fairly steady in- ings are inadequate to meet both public and crease in domestic savings is evident between private credit demands in a low interest rate, 1960 and 1978. Net private savings grew, at an noninflationary environment. average annual rate of 11.5 percent, from 7 How the problem is resolved is of utmost percent to 12 percent of GNP. Since 1978, how- importance to the efforts in the Fourth District to ever, net private savings has leveled off, and deal with the accumulated problems of past since 1981 it has declined to 6 percent of GNP. In decades. High interest rates will not help restore contrast, gross savings continued to grow by a economic vitality. In my view, however, high widening margin because of more generous de- interest rates are symptomatic of our problems. preciation allowances. For much of the period Savings are inadequate for all our needs, and the since 1960, the federal sector's appetite for sav- growing fear that more intense competition in ings remained fairly subdued. Between 1960 and capital markets—and perhaps even higher inter- 1969, net federal borrowing rarely exceeded 1 est rates—lie ahead will severely discourage the percent of GNP; over the next five years, it restructuring of the older industries and areas of averaged only slightly above 1 percent of GNP. the country. Greater efficiency will be achieved, Since 1979, as net private savings slowed, the but with lower capacity in important industries. federal borrowing rose dramatically to almost 6 As I have indicated, our present problems are percent of GNP in 1983, roughly equivalent to importantly rooted in the economic environnet savings. The situation is even more serious if ment. An environment marked by inflation, unone believes, as I do, that the large trade deficit certainty, fitful economic expansions, and sharp and the associated inflows of foreign capital recessions does not encourage risktaking in purcannot safely be extrapolated into the future. suit of long-term productivity objectives. It does The sharp rise in net federal borrowing has not encourage wise and prudent choices. It does reduced funds available to finance additions to not encourage decisions that are consistent with the private capital stock. While this may not good economic performance. The solutions to have been a major problem when the economy the problems we are struggling with require a was in recession, it will create problems down stable economic environment. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

507 Announcements CONSUMER ADVISORY COUNCIL: EXTENSION OF COMMENT PERIOD NOMINATIONS The Federal Reserve Board announced the ex- The Federal Reserve Board announced that it is tension until October 29, 1984, of the comment seeking nominations of qualified individuals for period on proposals published in March concernnine appointments to its Consumer Advisory ing reduction of risks on large-dollar wire trans- Council, to replace members whose terms expire fers of funds. on December 31, 1984. Nominations should be submitted in writing to REVISED LIST OF OTC MARGIN STOCKS Dolores S. Smith, Assistant Director, Division of Consumer and Community Affairs, Board of The Federal Reserve Board published on June 1, Governors of the Federal Reserve System, 1984, a revised list of over-the-counter (OTC) Washington, D.C. 20551, and must be received stocks that are subject to its margin regulations, no later than August 10, 1984. effective June 18, 1984. Nominations should include the name, ad- The list supersedes the revised List of OTC dress, and telephone number of the nominee, Margin Stocks effective on June 10, 1983, and the past and present positions held, and special amendments to that list effective on October 17, knowledge, interests, and experience related to 1983, and February 21, 1984. Changes that have consumer financial matters. been made in the list, which now includes 2,070 OTC stocks, are as follows: 201 stocks have been CLASSIFICATION OF VENEZUELAN LOANS included for the first time; 15 stocks previously on the list have been removed for substantially In response to inquiries, the Federal Reserve failing to meet the requirements for continued confirmed on May 11, 1984, that the classifica- listing; 33 stocks have been removed for reasons tion of certain Venezuelan loans as substandard, such as being listed on a national securities made during the week of March 5, reflected exchange or being involved in an acquisition. entirely economic and technical analysis by the normal inter-agency group of bank examiners. SYSTEM MEMBERSHIP-. That group meets at regular intervals to review ADMISSION OF STATE BANKS foreign loans. At the time of the March meeting, among other factors, arrears on Venezuelan debt The following banks were admitted to memberwere building. These classifications are reviewed ship in the Federal Reserve System during the regularly. period May 10 through June 8, 1984: CHANGE IN BOARD STAFF Florida Port St. Lucie First American Bank The Board of Governors has announced the of St. Lucie County appointment of Portia W. Thompson to the offi- Illinois cial staff as the Board's EEO Programs Officer, Bensonville First American Bank effective June 11, 1984. Ms. Thompson came to of Bensonville the Board in September 1968. She became As- Indiana sistant to the Director of EEO in April 1980 and Jeffersonville Citizens Bank and Trust Manager of Board EEO Programs in January Company 1982. Ms. Thompson has a B.A. in Economics from Howard University. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

509 Record of Policy Actions of the Federal Open Market Committee MEETING HELD workweek, which had jumped 0.5 hour in Janu- ON MARCH 26-27, 1984 ary to 41.0 hours, held steady in February at its highest level since 1967. The civilian unemploy- 1. Domestic Policy Directive ment rate declined 0.2 percentage point each month to 7.8 percent in February. The information reviewed at this meeting indicat- Consumer spending has contributed substaned that growth in real GNP had accelerated tially to recent gains in economic activity. Retail markedly in the first quarter from the 5 percent sales grew at an exceptional pace in January and annual rate of expansion in the fourth quarter of changed little in February. The automobile mar- 1983. The latest data suggested that demands for ket was particularly strong, with sales of domesgoods and services might remain relatively tic models in January and February, at an annual strong in the months ahead, though real growth rate of 8V2 million units, up over 1 million units was expected to slow from the first-quarter pace. from the average pace during the fourth quarter. The rise in average prices, as measured by the Sales during the first 20 days of March continued fixed-weight index for gross domestic business relatively strong, at a pace of about 8 million product, appeared to have increased somewhat, units. but wage increases generally remained moder- Private housing starts surged in January and ate. February, reaching an annual rate of nearly 2.2 The index of industrial production rose l]A million units, the highest level in almost six years percent in both January and February, after and well above the rate of 1.7 million units average monthly increases of about V2 percent in recorded in the fourth quarter and in 1983 as a the fourth quarter. Gains in output were wide- whole. Building permits for residential construcspread across major product and material catego- tion also rose in both January and February, and ries, with especially large increases in construc- home sales remained high. tion supplies, consumer goods, and durable In the business sector, capital outlays have goods materials. Despite relatively lean inven- continued to grow, though at rates below the tories at automobile dealers, auto production unusually rapid expansion in the last half of 1983. was little changed in January and February from Shipments of nondefense capital goods weakthe 8 million unit rate recorded in December, as ened in the first two months of the year but some plants producing the more popular large- remained at high levels. Other recent informasize cars were encountering capacity constraints. tion, including a rising trend in new orders and The rate of capacity utilization in manufacturing survey reports of upward revisions in business rose one percentage point further in February to spending plans, generally suggests continuing 81.0 percent—the highest level since May 1981 strength in business fixed investment. and only slightly below the 81.8 percent average The producer price index for finished goods for the 1967-82 period. and the consumer price index both increased In January and February gains in nonfarm about V2 percent per month in January and Febpayroll employment averaged 325,000, substan- ruary. The rise in prices was faster than in the tially above the average monthly increases of fourth quarter of 1984, with increases concenabout 250,000 in the fourth quarter. Manufac- trated in the food sector. The index of average turing employment continued to rise by more hourly earnings rose only slightly over the first than 100,000 in each month, and the factory two months of the year, although total compen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

510 Federal Reserve Bulletin • June 1984 sation costs apparently increased more rapidly, parently increased in January and February at a in part because of higher payroll taxes for social pace substantially above the Committee's monisecurity. toring range for the year. Total credit at U.S. In foreign exchange markets the trade-weight- commercial banks continued to expand rapidly, ed value of the dollar against major foreign at an annual rate of about 11 percent in January currencies declined about 7 percent from the end and 15 percent in February. Loan demand conof January through the first week of March. tinued to be brisk in all major categories of Concerns about inflation prospects in the United loans—business, consumer, and real estate. States, given large budget deficits and a strength- Even after adjusting for the loan growth in Febening private economy, were cited by market ruary that was associated with merger-related participants as factors weakening the dollar. financing, business borrowing at banks and in the More recently, part of that decline was retraced, commercial paper market remained substantial. apparently aided by rises in U.S. interest rates The implementation in early February of conrelative to foreign rates. The merchandise trade temporaneous reserve-requirement accounting, deficit rose sharply in January, mainly because and also the legislated phasedown to lower reof larger non-oil imports. serve requirements for member banks under the At its meeting on January 30-31, 1984, the Monetary Control Act at the same time, appar- Federal Open Market Committee had agreed that ently prompted a cautious approach to reserve in the short run policy should be directed at management by depository institutions, entailing maintaining the existing degree of restraint on for a time, as anticipated, an unusually high level reserve positions. The members anticipated that of excess reserves. In large part because of the such a policy would be associated with growth of high volume of excess reserves, but also reflectboth M2 and M3 at an annual rate of around 8 ing the strength in required reserves accompanypercent for the period from December to March ing growth in transaction deposits, total and and growth of Ml at an annual rate of about 7 nonborrowed reserves expanded rapidly in Febpercent over the three-month period. The rate of ruary. They appeared to be changing little in expansion in total domestic nonfinancial debt March, however, as excess reserves declined. was thought likely to be within the Committee's Borrowing at the discount window averaged monitoring range of 8 to 11 percent for the year about $600 million over the first three reserve 1984. It was also agreed that the need for lesser maintenance periods following the previous or greater restraint on reserves would be evaluat- meeting, but moved up to an average of someed against the background of developments relat- what over $1 billion in the current maintenance ing to the strength of the business expansion and period, which began in mid-March. of inflationary pressures. The intermeeting range Market interest rates moved considerably for the federal funds rate, which provides a higher over the intermeeting period, generally mechanism for initiating consultation of the rising about 3/4 to 1 percentage point in both Committee, was retained at 6 to 10 percent. short- and long-term markets. The increases ap- Data available through mid-March indicated peared to be induced by the strength of economic that since December Ml and M3 had been ex- activity and private credit demands, disappointpanding somewhat more rapidly than anticipated ment over the absence of significant progress to at the January meeting. Tentative estimates sug- curb the federal deficit, concern that prices might gested that in the first quarter as a whole Ml and rise more rapidly, and expectations that mone- M3 grew at annual rates of about IVA percent and tary policy would not accommodate rapid growth 8!/2 percent from the fourth quarter, well up in in money and credit. Federal funds traded in a their longer-run ranges of 4 to 8 percent and 6 to range of 9Vi to 93A percent during most of the 9 percent respectively established by the Com- intermeeting interval; most recently, however, mittee for 1984. Growth in M2 appeared to have the funds rate tended to fluctuate around 10 been less rapid than previously expected and was percent and was occasionally somewhat higher. estimated to be at a rate in the lower part of the 6 Against the background of generally rising marto 9 percent range for 1984. ket rates and brisk business loan demand, commercial banks raised their "prime loan" rate The debt of domestic nonfinancial sectors ap- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 511 from 11 to ll!/2 percent in mid-March. Average these risks. Housing and the thrift industry that rates on new commitments for fixed-rate conven- serviced it were likely to be seriously affected by tional home mortgage loans rose nearly ]A per- any further marked rise in interest rates, especentage point on balance over the intermeeting cially in an environment in which variable rate period. and other new financing instruments were expos- The staff projections presented at this meeting ing a growing number of borrowers to unaccussuggested that growth in real GNP would moder- tomed financial risks. Reference was also made ate considerably over the course of the year but to the vulnerability of commercial construction, that the rate of price increase might pick up notably that involving office structures, given the somewhat from its recent pace. It was expected considerable volume of new building in several that inventory investment and auto demand sections of the country that were experiencing would level off and that housing activity would high vacancy rates. In agriculture, a sizable decline from the advanced pace of the first number of farmers were experiencing serious quarter. The impetus for continued economic debt problems that were being worsened by expansion was expected to come from business pressures on earnings and lower land prices. On fixed investment, from government purchases the international side, higher U.S. interest rates and, with rising world economic activity, from would clearly exacerbate the debt servicing export demand. problems of several less developed countries. In the Committee's discussion of the economic The very large foreign trade deficit was also seen situation and outlook, members expressed con- as a threat to the continuing health of the econocern that the current pace of the economic ex- my. pansion, if maintained for long, would lead to The members expressed a good deal of congrowing imbalances, to price and wage pressures cern about the possibility of an intensification of in some sectors of the economy and to continua- price and wage pressures. While price increases tion—against the background of persisting large had accelerated only slightly in recent months federal deficits—of exceptionally heavy credit and wage advances had remained relatively redemands. Consequently, the sustainability of the strained, a number of members commented that expansion would be jeopardized. The view that inflationary expectations appeared to be worsenthe present rate of economic growth could be ing. Capacity utilization rates were already high expected to moderate was widely shared, but in some sectors of the economy and, more generseveral members suggested that it might remain ally, were approaching levels that had been assosignificantly faster than generally anticipated, at ciated with rising rates of inflation in previous least over the months immediately ahead. It was periods of economic expansion. In this situation, noted, for instance, that business investment and an environment conducive to more aggressive inventory rebuilding might well provide greater pricing could develop despite the increase in stimulus to economic activity than many expect- profit margins of many companies during the ed. Moreover, members indicated particular con- expansion period. The trend in wage settlements cern that fiscal policy was likely to remain undu- would be a key element in that respect, with ly stimulative in the context of an economy with potentially trend-setting wage negotiations rapidly rising levels of resource utilization, in- scheduled for later in the year. The ready availcluding a few industries that were beginning to ability of imports was a material factor restrainexperience pressures on existing capacity. ing prices for a wide range of goods, but a sharp At the same time, several members observed decline in the foreign exchange value of the that, in the light of various imbalances and dollar could aggravate inflationary pressures. In distortions, both domestic and international, the evaluating the price outlook it was also noted economy might be vulnerable to large and sud- that, in contrast to the experience in some earlier den increases in interest rates and pressures on years, oil prices were not contributing to inflafinancial markets. The emergence of strong busi- tion, and one member observed that faster ness credit demands on top of a continuing large growth in the labor force, should it materialize rate of increase in consumer and mortgage credit following the slow growth in 1983, combined and massive Treasury financings accentuated with a rate of unemployment that was still rela- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

512 Federal Reserve Bulletin • June 1984 tively high by historical standards, would also contain inflation, and minimize the potential tend to curb inflationary pressures. damage to interest-sensitive sectors of the econ- In the Committee's discussion of policy for the omy. However, several of these members foreperiod ahead, there was a relatively narrow saw economic and monetary developments that range of preferences with regard to monetary might call for some further restraint during the growth objectives for the second quarter. All of intermeeting period, and they wanted to be prethe members wanted to maintain growth within pared to move promptly in that event. Some the Committee's longer-run ranges; while, as members did not want to rule out the possibility earlier, growth in the broader aggregates in the of lesser restraint, but most regarded such a upper part of their ranges was considered accept- development as less likely. able, there was a desire to see Ml closer to the Other members of the Committee, viewing middle of its range over a period of time. A demand pressures on the economy as stronger number of members suggested that the degree of and posing a more immediate threat of rising reserve pressure might be attuned a bit more price pressures and growing imbalances, felt that rapidly than over the past year to deviations in some intensification in the degree of reserve monetary aggregates from objectives, but no restraint was called for at this time. This would, member advocated that the degree of reserve it was maintained, reduce the risk that much restraint be adjusted automatically and related more vigorous restraint would be needed later, solely to the performance of the monetary aggre- with sharply adverse consequences for sectors of gates. Some members emphasized their concern the economy that were vulnerable to rising interthat growth in the aggregates was more likely to est rates. These members were, nonetheless, exceed than to fall short of the second-quarter concerned about moving too aggressively in the objectives if the expansion in economic activity direction of greater restraint, given the sensitive remained exceptionally strong. The Committee, state of domestic and international credit marit was argued, should in that event be prepared to kets and uncertainties about the underlying lean cautiously, in the present environment, strength of demand pressures. against excessive monetary growth as it In light of recent market developments, the emerged. The point was also emphasized by members agreed that the intermeeting range for some members that significant shortfalls in mon- the federal funds rate should be raised from the 6 etary growth might desirably lead to some easing to 10 percent that had been specified since midof interest rate pressures. There was general November 1982. It was understood that the acceptance of an approach that would take into federal funds range is essentially a mechanism account such factors as the apparent strength of for initiating Committee consultations when its economic activity and of inflationary pressures limits look as if they might be persistently exin any adjustment of the degree of reserve re- ceeded. In that context, however, members indistraint. A number of members also called atten- cated differing views, within a narrow range, as tion to the rate of credit growth, which had to the appropriate "consultation point." Some accelerated considerably in early 1984 and which members preferred a smaller increase in that appeared to be an important factor in recent limit to provide for earlier consultation of the interest rate increases. Committee should significant further pressures With regard to preferences for the Commit- develop in financial markets; others favored a bit tee's operational approach, there were some more leeway in the degree of pressure that would differences of view about whether the recent be acceptable before a consultation would be degree of reserve restraint should be maintained triggered. In general, it was understood that the or altered in the period ahead, and under what federal funds rate was likely to fluctuate in conditions. Many felt that maintenance of some- response not only to conditions in the reserve thing like the degree of restraint that had devel- market, partly in the context of the newly introoped in recent days offered a reasonable pros- duced two-week reserve period, but also to pect for achieving the monetary growth and changing market expectations about the course financial market conditions that would foster a of credit and money demands and monetary sustainable pace of economic expansion, help to policy. In the discussion of the degree of reserve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 513 restraint that would be consistent with the Com- the year, although total compensation costs appear to mittee's money and credit objectives, it was have increased more rapidly. The foreign exchange value of the dollar against a noted that reserve paths might have to be considtrade-weighted average of major foreign currencies ered in light of changes in the discount rate that declined considerably from the end of January through might subsequently be made by the Board of the first week of March, but part of that decline was Governors, depending on such surrounding cir- retraced more recently. The merchandise trade deficit cumstances as the intensity of bank demands for rose sharply in January, mainly because of larger nonoil imports. borrowing, overall money and credit demands, Data available through mid-March indicate that Ml and whether the market had already adjusted to and M3 have expanded somewhat more rapidly than any new discount rate. anticipated at the previous meeting; since the fourth At the conclusion of its discussion the Com- quarter of 1983, Ml and M3 are tentatively estimated mittee decided to seek to maintain pressures on to have grown at rates close to the upper limits of the Committee's ranges for 1984. Growth in M2 appears to reserve positions that were deemed to be consishave been less rapid than previously expected and was tent with growth of Ml, M2, and M3 from March estimated to be at a rate in the lower part of its longerto June at annual rates of around 6V2, 8, and 8I/2 run range. In January and February, growth of total percent respectively; initially those pressures domestic nonfinancial debt apparently rose at a pace should be close to those that had emerged in substantially above the Committee's monitoring range for the year, and bank credit continued to expand at a recent days. The members agreed that greater relatively rapid rate. Interest rates have risen considrestraint on reserve conditions would be accepterably since late January. able in the context of more substantial growth in The Federal Open Market Committee seeks to fosthe monetary aggregates, while somewhat lesser ter monetary and financial conditions that will help to restraint might be acceptable if monetary growth reduce inflation further, promote growth in output on a sustainable basis, and contribute to an improved patwere significantly slower. In either event, the tern of international transactions. The Committee esneed for greater or lesser restraint would also be tablished growth ranges for the broader aggregates of 6 appraised against the background of develop- to 9 percent for both M2 and M3 for the period from ments relating to the continuing strength of the the fourth quarter of 1983 to the fourth quarter of 1984. business expansion and of inflationary pressures The Committee also considered that a range of 4 to 8 percent for Ml would be appropriate for the same and the rate of expansion in total credit. It was period, taking account of the possibility that, in the agreed that the intermeeting range for the federal light of the changed composition of Ml, its relationfunds rate would be raised to IV2 to 11 Vi percent. ship to GNP over time may be shifting. Pending At the conclusion of the meeting the following further experience, growth in that aggregate will need to be interpreted in the light of the growth in the other domestic policy directive was issued to the Fedmonetary aggregates, which for the time being would eral Reserve Bank of New York: continue to receive substantial weight. The associated range for total domestic nonfinancial debt was set at 8 to 11 percent for the year 1984. The information reviewed at this meeting indicates The Committee understood that policy implementathat growth in real GNP has accelerated markedly in tion would require continuing appraisal of the relationthe current quarter and suggests that demand for ships not only among the various measures of money goods and services may remain relatively strong in the and credit but also between those aggregates and months ahead. In January and February, industrial nominal GNP, including evaluation of conditions in production rose at a considerably faster pace than in domestic credit and foreign exchange markets. the fourth quarter, and gains in nonfarm payroll em- In the short run the Committee seeks to maintain ployment were large over the two-month period. The pressures on bank reserve positions judged to be civilian unemployment rate declined 0.2 percentage consistent with growth in Ml, M2, and M3 at annual point each month to 7.8 percent in February. Retail rates of around 6V2, 8, and 8V2 percent, respectively, sales grew at an exceptional pace in January and during the period from March to June. Greater reserve changed little in February. Housing starts rose sub- restraint would be acceptable in the event of more stantially in both months to the highest rate in several substantial growth of the monetary aggregates, while years. Information on outlays and spending plans somewhat lesser restraint might be acceptable if generally suggests continuing strength in business growth of the monetary aggregates slowed significantfixed investment. Prices rose somewhat faster in early ly; in either case, such a change would be considered 1984 than in the fourth quarter, with increases concen- in the context of appraisals of the continuing strength trated in the food sector. The index of average hourly of the business expansion, inflationary pressures, and earnings rose only slightly over the first two months of the rate of credit growth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

514 Federal Reserve Bulletin • June 1984 The Chairman may call for Committee consultation warehouse foreign currencies on the terms if it appears to the Manager for Domestic Operations adopted on March 18, 1980, with the understandthat pursuit of the monetary objectives and related ing that the agreement would continue to be reserve paths during the period before the next meetsubject to annual review. ing is likely to be associated with a federal funds rate persistently outside a range of IV2 to 11V2 percent. Votes for these actions: Messrs. Volcker, Solomon, Boehne, Boykin, Corrigan, Gramley, Mrs. Votes for this action: Messrs. Volcker, Solomon, Horn, Messrs. Martin, Partee, Rice, Mrs. Teeters, Boehne, Boykin, Corrigan, Mrs. Horn, Messrs. and Mr. Wallich. Votes against these actions: Partee, Rice, and Mrs. Teeters. Votes against this None. action: Messrs. Gramley, Martin, and Wallich. Messrs. Gramley and Wallich dissented from this action because they preferred a directive 3. Authorization for Domestic Open calling for a somewhat greater degree of reserve Market Operations restraint and slightly lower objectives for monetary growth in the second quarter. In their view At this meeting, the Committee approved a temthe strength of the economic expansion warrant- porary increase from $4 billion to $6 billion in the ed more restraint now in order to help avert more limit on changes between Committee meetings in serious inflation and financial pressures later. System Account holdings of U.S. government Mr. Martin dissented because he was con- and federal agency securities specified in paracerned that implementation of the Committee's graph 1(a) of the authorization for domestic open policy was likely to lead to more restraint than market operations. The increase was effective would be desirable in light of the vulnerability of for the intermeeting period ending with the close key sectors of the economy to rising interest of business on May 22, 1984. Subsequently, on rates. Thrift institutions, housing, agriculture, April 18, 1984, the Committee voted to increase and also problems associated with less devel- the limit for the intermeeting period by an addioped country debt were examples that he cited. tional $1 billion to $7 billion. In his view, slightly higher objectives for monetary growth needed to be established for the Votes for these actions: Messrs. Volcker, Solomon, Boehne, Boykin, Corrigan, Gramley, Mrs. second quarter. Horn, Messrs. Martin, Partee, Rice, Mrs. Teeters, and Mr. Wallich. Votes against these actions: None. 2. Review of Continuing Authorizations These actions were taken on the recommenda- The Committee followed its customary practice tion of the Manager for Domestic Operations. of reviewing all of its continuing authorizations The Manager had advised that substantial net and directives at this first regular meeting of the purchases of securities were likely to be required Federal Open Market Committee following the over the intermeeting interval in order to accomelection of new members from the Federal Re- modate large reserve needs resulting from an serve Banks to serve for the year beginning expected bulge in Treasury balances at Federal March 1, 1984. The Committee reaffirmed the Reserve Banks. By April 18, the leeway for authorization for domestic open market opera- further purchases had been reduced to about tions, the authorization for foreign currency op- $100 million, as the increase in Treasury balerations, the foreign currency directive, and the ances proved to be somewhat larger than had procedural instructions with respect to foreign been anticipated earlier. The Manager requested currency operations in the forms in which they the additional $1 billion increase in the limit to were currently outstanding. The Committee also provide for flexibility in the normal course of reaffirmed its agreement with the Treasury to open market operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

515 Legal Developments BANK HOLDING COMPANY, BANK MERGER, AND market and consummation of the proposal, therefore, BANK SERVICES CORPORATION ORDERS ISSUED would not result in any adverse effects upon competi- BY THE BOARD OF GOVERNORS tion in any relevant area. Considerations relating to the convenience and needs of the community to be served are also consistent with approval. Orders Issued Under Section 3 of Bank Holding The State of Montana and the FDIC have submitted Company Act comments regarding the level of debt to be incurred in the proposed transaction in view of the fact that Bank has been in operation only since May 1982. The Board Bitterroot Holding Company has reviewed these comments in light of the Board's Lolo, Montana policy statement regarding the level of indebtedness in the formation of small one-bank holding companies.2 Order Approving Formation of a Bank Holding In order to facilitate the transfer of local ownership of Company small community banks, consistent with safety and soundness considerations, the Board has permitted Bitterroot Holding Company, Lolo, Montana, has debt levels in connection with small one-bank holding applied for the Board's approval under section 3(a)(1) company formations higher than would be permitted of the Bank Holding Company Act of 1956, as amend- for larger banking organizations. Although Applicant ed ("Act") (12 U.S.C. § 1842(a)(1)), to become a bank will incur some debt in connection with the proposed holding company by acquiring all of the voting shares acquisition, its debt-to-equity ratio will be substantialof Bitterroot Valley Bank, Lolo, Montana. ly below the level permitted under the Board's guide- Notice of the application, affording opportunity for lines, as well as below the level that would be permitinterested persons to submit comments, has been ted for a de novo bank.3 Based on all the facts of given in accordance with section 3(b) of the Act. The record, particularly commitments made by Applitime for filing comments has expired, and the Board cant's principals to maintain Bank's capital above the has considered the application and all comments re- minimum specified in the Board's Capital Adequacy ceived, including those from the Montana Commis- Guidelines,4 the Board concludes that Applicant's sioner of Financial Institutions and the Minneapolis financial and managerial resources and future pros- Regional Office of the Federal Deposit Insurance pects are consistent with approval. Corporation, in light of the factors set forth in section On the basis of these and other facts of record, it is 3(c) of the Act (12 U.S.C. § 1842(c)). the Board's judgment that the application should be, Applicant, a nonoperating company, was organized and hereby is, approved for the reasons summarized for the purpose of becoming a bank holding company above. The transaction shall not be consummated by acquiring Bank. Upon consummation, principals of before the thirtieth calendar day following the effective Applicant would control a banking organization with date of this Order, or later than three months after the deposits of $5.6 million, which is one of the smallest effective date of this Order, unless such period is banking organizations in Montana.1 extended for good cause by the Board, or by the The proposed transaction is essentially a corporate Federal Reserve Bank of Minneapolis pursuant to reorganization and would not increase the concentra- delegated authority. tion of banking resources in any relevant area. Neither Applicant nor any of its principals is affiliated with any other banking organization in any relevant banking 2. "Revision of Regulation Y," 70 FEDERAL RESERVE BULLETIN 144-145 (1984), "Appendix B—Policy Statement for Formation of Small One-Bank Holding Companies." 3. See Holcomb Bancshares, Inc., 69 FEDERAL RESERVE BULLE- TIN 804, 805 (1983). 1. Banking data are as of December 31, 1983. 4. Id. at 142-143, "Appendix A—Capital Adequacy Guidelines." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

516 Federal Reserve Bulletin • June 1984 By order of the Board of Governors, effective needs of the community to be served are not being May 24, 1984. met. Based on the foregoing and other facts of record,3 Voting for this action: Vice Chairman Martin and Gover- the Board has determined that approval of the applicanors Wallich, Teeters, Rice, and Gramley. Absent and not tion would be consistent with the public interest and voting: Chairman Volcker and Governor Partee. that the application should be and hereby is approved. The transaction shall not be consummated before the JAMES MCAFEE thirtieth calendar day following the effective date of [SEAL] Associate Secretary of the Board this Order, or later than three months following the effective date of this Order, unless such period is extended for good cause by the Board or the Federal Bourbon County Bancshares Reserve Bank of Kansas City, acting pursuant to Fort Scott, Kansas delegated authority. By order of the Board of Governors, effective Order Approving Formation of a Bank Holding May 17, 1984. Company Voting for this action: Vice Chairman Martin and Gover- Bourbon County Bancshares, Fort Scott, Kansas, has nors Partee, Rice, and Gramley. Absent and not voting: applied for the Board's approval, pursuant to section Chairman Volcker and Governors Wallich and Teeters. 3(a)(1) of the Bank Holding Company Act ("Act") (12 U.S.C. § 1842(a)(1)), to become a bank holding JAMES MCAFEE [SEAL] Associate Secretary of the Board company by acquiring The Citizens National Bank of Fort Scott, Fort Scott, Kansas ("Bank"). Notice of the application, affording an opportunity for interested persons to submit comments, has been First of America Bank Corporation given in accordance with section 3(b) of the Act. The Kalamazoo, Michigan time for filing comments has expired and the Board has considered the application and all comments re- Order Approving Acquisition of a Bank ceived in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). First of America Bank Corporation, Kalamazoo, Applicant is a nonoperating corporation formed to Michigan, a bank holding company within the meaning acquire Bank. Bank is the 32nd largest commercial of the Bank Holding Company Act (the "Act") bank in Kansas, with deposits of $77.9 million, repre- (12 U.S.C. § 1841 et seq.), has applied for the Board's senting 0.45 percent of total deposits in commercial approval under section 3(a)(3) of the Act (12 U.S.C. banks in the state.1 Consummation of this proposal § 1842(a)(3)) to acquire The Citizens State Bank of would have no significant effect on the concentration Rudyard, Rudyard, Michigan ("Bank"). of banking resources in Kansas. Notice of the application, affording an opportunity Bank is the largest of five banks in the Bourbon for interested persons to submit comments and views County banking market,2 controlling 54.9 percent of has been given in accordance with section 3(b) of the total deposits in commercial banks in the market. Act. The time for filing comments has expired and the Principals of Applicant have no banking interests in Board has considered the application and all comthe Bourbon County banking market. Accordingly, ments received in light of the factors set forth in approval of this proposal would have no significant section 3(c) of the Act (12 U.S.C. § 1842(c)). effect on competition in any relevant market. The financial and managerial resources of Applicant and Bank are regarded as generally satisfactory and 3. The Board has considered the comments of a minority sharetheir prospects appear favorable. While Applicant has holder of Bank who claimed that the minority shareholders of Bank not proposed any new services to be conducted by were not receiving equitable treatment in connection with Applicant's Bank upon consummation of this proposal, there is no tender offer for shares of Bank and questioned Applicant's ability to service the debt associated with its acquisition of Bank. Although evidence in the record to indicate that the banking there are limits on the Board's ability to consider complaints by minority shareholders of inequitable treatment in tender offers, the Board has taken these comments into consideration in acting on this application. See Western Bancshares, Inc. v. Board of Governors, 480 F.2d 749 (10th Cir. 1973). On the basis of all the facts of record, the 1. Banking data are as of June 30, 1983. Board does not believe these comments present sufficient evidence to 2. The Bourbon County banking market is defined as Bourbon support denial of the application based on adverse managerial or County, Kansas. financial factors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 517 Applicant, with 28 banking subsidiaries, is the fifth reducing Bank's effectiveness as a competitor.5 Seclargest commercial banking organization in Michigan ond, five independent commercial banking organizawith total domestic deposits of $3.4 billion, represent- tions would remain in the Sault Saint Marie banking ing 7.1 percent of the total deposits in commercial market following consummation of the proposal.6 banks in the state.1 Bank, with total deposits of $13 The record of this application also indicates that this million, is one of the smaller banks in Michigan, transaction would benefit the convenience and needs holding less than 0.1 percent of the total deposits in of the community. Consummation of this transaction commercial banks in the state. Upon consummation of would strengthen Bank's financial and managerial this proposal, Applicant's share of statewide deposits resources and would maintain banking services in the in commercial banks would increase by less than 0.1 Rudyard, Michigan, vicinity, where Bank is located.7 percent and its rank would remain unchanged. Ac- Furthermore, Applicant has indicated that it will procordingly, consummation of the proposed transaction vide additional services at Bank's offices, such as an would have no significant effect on the concentration automatic overdraft protection plan and a national of banking resources in Michigan. credit card program, that are not now offered by Bank. Two subsidiary banks of Applicant compete directly The Board has concluded that the significant benefits with Bank in the Sault Saint Marie banking market.2 to the convenience and needs of the community that Applicant is the fourth largest of seven commercial would result from this transaction outweigh the antibanking organizations in the market, with total depos- competitive effects of this proposal. its of approximately $33.2 million, representing 15.2 The financial and managerial resources and prospercent of total deposits in commercial banks in the pects of Applicant and its subsidiary banks are genermarket.3 Bank is the sixth largest commercial banking ally satisfactory and, as discussed above, the financial organization in the market with total deposits of $13 and managerial resources and prospects of Bank million, representing 5.9 percent of the total deposits would be strengthened by this transaction. Thus, in commercial banks in the market. banking factors lend additional weight toward approv- Upon acquisition of Bank, Applicant would become al of the transaction. the second largest commercial banking organization in The Board has determined that consummation of the the market and would control 21.1 percent of the total proposal is consistent with the public interest and that deposits in commercial banks in the market. The the application should be approved. On the basis of percent of commercial bank deposits held by the four record, the application is approved for the reasons largest banking organizations in the market would summarized above. The transaction shall not be conincrease from 80 percent to 85.9 percent. In addition, summated before the thirtieth calendar day following the market's Herfindahl-Hirschman Index ("HHI") the effective date of this Order or later than three would increase by 180 points from 1870 to 2050, months after the effective date of this Order, unless making the transaction one that would be subject to such period is extended for good cause by the Board or challenge by the Department of Justice under its by the Federal Reserve Bank of Chicago, acting pursu- Merger Guidelines.4 ant to delegated authority. Approval of this application would eliminate a com- By order of the Board of Governors, effective petitor and increase concentration in the already high- May 9, 1984. ly concentrated Sault Saint Marie banking market. While the Board is concerned about the anticompeti- Voting for this action: Chairman Volcker and Governors tive effects of the proposed transaction, these effects Partee, Teeters, Rice, and Gramley. Absent and not voting: Governors Martin and Wallich. are mitigated by the following facts of record. First, the record indicates that bank has experienced difficul- WILLIAM W. WILES ties in recent years due to a substantial decrease in [SEAL] Secretary of the Board population and high unemployment in the market, 1. Unless otherwise indicated, all banking data are as of June 30, 1983. 5. The population in Kinross township, where Bank is located, 2. The Sault Saint Marie banking market is approximated by decreased from 6,763 in 1970 to 624 in 1983. Chippewa, Luce, and Mackinac Counties, Michigan. 6. The Board notes that a branch of one of the largest state 3. Market data for one of Applicant's subsidiaries in the market, chartered thrift institutions in Michigan, Detroit & Northern Savings First of America-Straits Area, are as of June 30, 1982. & Loan Association, operates in the relevant market. This thrift 4. Under the United States Department of Justice Merger Guide- institution holds deposits in the market of $37.3 million, amounting to lines (June 14, 1982), the Department is likely to challenge a merger approximately 15 percent of the total deposits in the market. that produces an increase in the HHI of 100 points or more if the post- 7. The next closest banking office is located approximately 18 miles merger HHI is above 1800. away from Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

518 Federal Reserve Bulletin • June 1984 The Mitsubishi Bank, Limited BanCal Tri-State Corporation, with total assets of Tokyo,Japan $3.8 billion, operates only one subsidiary bank, the Bank of California, N.A., which controls $2.2 billion Order Approving Acquisition of a Bank in total deposits and is the eighth largest commercial banking organization in California. The Bank of Cali- The Mitsubishi Bank, Limited, Tokyo, Japan, a regis- fornia is chartered in California and its articles of tered bank holding company within the meaning of the incorporation specify that its principal office shall be in Bank Holding Company Act (the "Act") (12 U.S.C. California. The Bank of California is one of only two § 1841 et seq.), has applied for the Board's approval national banks with branches in more than one state. It under section 3(a)(3) of the Act (12 U.S.C. operates 16 branches in California, three branches in § 1842(a)(3)) to acquire all of the voting shares of Washington, and one branch in Oregon.2 Approxi- BanCal Tri-State Corporation, San Francisco, Califor- mately 75 percent of the deposits controlled by the nia, a registered bank holding company by virtue of its Bank of California are held in its California branches. ownership of The Bank of California, National Associ- The Douglas Amendment (12 U.S.C. § 1842(d)) ation, San Francisco, California. The Mitsubishi Bank prohibits the Board from approving any application by also proposes to acquire all of the outstanding voting a bank holding company to acquire "any additional shares of Bank of California International Corpora- bank located outside of the State" in which the tion, San Francisco, California, which is a corporation acquiring bank holding company's subsidiary banks organized pursuant to section 25(a) of the Federal principally conduct their operations, unless the acqui- Reserve Act (the "Edge Act") (12 U.S.C. § 611 sition is specifically authorized by the state in which et seq.). the bank to be acquired is located. For purposes of the Notice of the application, affording interested per- Douglas Amendment, a bank holding company is sons an opportunity to submit comments, has been deemed to be located in the state in which the total given in accordance with section 3 of the Act. The time deposits of its subsidiary banks are the largest, which, for filing comments has expired, and the Board has for Applicant, is California. considered the application and all comments received Based on all of the facts of record in this case, the in light of the factors set forth in section 3(c) of the Act Board concludes that, for purposes of the Douglas and the purposes of the Edge Act. Amendment, the Bank of California is located in The Mitsubishi Bank, with total assets of $97.1 California, where it is chartered and principally conbillion as of March 31, 1983, is the third largest ducts its banking operations. The Board believes that commercial banking organization in Japan and the the acquisition of the Bank of California by a Califortwelfth largest commercial banking organization in the nia bank holding company is consistent with the world.1 In the United States, Applicant operates purposes of the Douglas Amendment, provided the branches in New York, New York, and Chicago, acquisition is not used to allow the acquiring bank Illinois, as well as an agency in Los Angeles, Califor- holding company to expand its operation outside of the nia, with aggregate assets of $10.6 billion. Applicant state of its principal operations in a manner inconsisalso owns The Mitsubishi Bank of California, Los tent with the Douglas Amendment. In this regard, Angeles, California, which has total assets of $680 Applicant has advised the Board that it has no present million and ranks 21st among commercial banking plans to expand the Bank of California's banking organizations in California. Applicant has selected operations in the States of Washington and Oregon, California as its home state under the Board's Regula- where the Bank of California currently maintains tion K (12 C.F.R. § 211.22(b)), and is permitted under branches. Applicant has also committed that it will not section 5(b) of the International Banking Act expand in those states by merger or acquisition of (12 U.S.C. § 3103(b)) to retain its branches outside of banks without state authorization and has indicated it California because they were opened before July 27, will request the Board to approve any branch office 1978, the grandfather date under section 5 of the International Banking Act. 2. The Bank of California is expressly authorized by the McFadden Act to retain two of these branches in Oregon and Washington because they were established prior to February 25, 1927. (12 U.S.C. i. Unless otherwise noted, banking data are as of September 30, § 36). See also Seattle Trust & Savings Bank v. Bank of California 1983. N.A., 492 F.2d 48 (9th Cir.), cert, denied, 419 U.S. 844 (1974). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 519 expansion in those states should present circum- negative factor Applicant's capital position, the Board stances change. has taken into account a number of other factors that Accordingly, under these circumstances and subject mitigate the Board's concern. The Board notes that to Applicant's commitment, the Board concludes that Applicant is in compliance with the capital and other the Bank of California is not "located outside" of financial requirements of the appropriate supervisory California for purposes of the Douglas Amendment authorities in Japan and that Applicant's resources and and that its acquisition by Applicant—a California prospects are viewed as satisfactory by those authoribank holding company—is, therefore, permissible un- ties. Applicant also has a satisfactory record of operader the Douglas Amendment. tion in its local markets and has historically experi- Section 3(c) of the Act requires in every case that enced relatively low loan losses and has a relatively the Board consider the financial resources of the stable and substantial deposit base and a strong liquidapplicant organization and the bank or bank holding ity position. The Board has also considered other company to be acquired.3 As the Board has previously information regarding the financial condition of Applistated, the Board believes that the principles of nation- cant, including its substantial portfolio of securities of al treatment and competitive equity require that, in publicly held Japanese companies carried on Appligeneral, foreign banks seeking to establish or acquire cant's books at cost, which is substantially below their banking operations in the United States should meet current market value. the same general standards of strength, experience and In acting on this application, the Board also places reputation as are required of domestic banking organi- considerable weight on certain commitments made by zations and should be able to serve on a continuing Applicant regarding its operation of the Bank of Calibasis as a source of strength to their banking opera- fornia, including Applicant's commitment to maintain tions in the United States. On the other hand, the the Bank of California as a strong and particularly well Board is aware that foreign banks operate outside the capitalized banking organization. In this regard, Appli- United States in accordance with different regulatory cant has committed to take certain actions to increase and supervisory requirements, accounting principles, the capital ratio of the Bank of California to a specified asset quality standards, and banking practices and level that is not only significantly above the Board's traditions, all of which makes difficult comparisons of minimum capital guidelines but would also place the the capital positions of foreign and domestic banks. Bank of California among the more strongly capital- The appropriate balancing of these concerns raises a ized banks of comparable size. Applicant has also number of complex issues that the Board believes committed to take any steps necessary to maintain this require careful consideration and that the Board has level of capital. currently under review. In this regard, the Board has After reviewing all of these facts and commitments initiated consultations with appropriate foreign bank as well as other facts of record relating to the overall supervisors and notes that work is currently in pro- financial condition of Applicant and its U.S. banking gress among foreign and domestic bank supervisory operations, the Board has determined that, for the officials to develop more fully the concept of function- purposes of the proposed acquisition, Applicant's fial equivalency of capital ratios for banks of different nancial condition is consistent with approval of this countries. Pending the outcome of these consultations application. and deliberations, the Board has determined to consid- Applicant's subsidiary bank in California is the 21st er the issues raised by applications by foreign banks to largest commercial bank in California, with 0.26 peracquire domestic banks on a case-by-case basis. cent of total deposits in commercial banking organiza- It is in this context that the Board has reviewed this tions in the state. The Bank of California is the 11th application. The Board notes that the primary capital largest commercial bank in California and controls ratio of Applicant as publicly reported is well below 0.87 percent of total deposits in commercial banking the Board's capital guidelines for U.S. multinational organizations in the state. Upon consummation of the bank holding companies. While the Board regards as a proposal, Applicant would rank tenth among commercial banking organizations in California and would control 1.35 percent of deposits in commercial banks in the state. Consummation of this proposal would eliminate some existing competition between Applicant and 3. See the Board's guidelines for capital adequacy, 1 Federal BanCal Tri-State Corporation in the San Francisco, Reserve Regulatory Service 1 3-1506.1 (1982); 69 FEDERAL RESERVE Los Angeles, and San Diego metropolitan banking BULLETIN 539 (1983); and the Board's policy statement on the markets. The San Francisco metropolitan banking supervision of foreign bank holding companies, 1 Federal Reserve Regulatory Service 1 4-835 (1979). market is considered concentrated, with a Herfindahl- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

520 Federal Reserve Bulletin • June 1984 Hirschman Index ("HHI") of 2759. However, upon Dissenting Statement by Governors Martin and Rice consummation of the proposal, there will remain 74 commercial banks in this market and the HHI will This application involves the acquisition of a domestic increase by less than 1 point. The Los Angeles and San bank by a foreign banking organization whose publicly Diego metropolitan banking markets are not consid- reported capital is well below the Board's capital ered highly concentrated, and numerous commercial guidelines for comparable U.S. banking organizations. banking organizations would remain in each market It is our opinion that foreign banking organizations upon consummation of the proposal. In evaluating the that have low capital positions may have an unfair competitive aspects of this application, the Board has competitive advantage in the United States over comalso considered the presence of numerous thrift insti- parably sized domestic banking organizations that are tutions in each of these markets. required to maintain a higher capital level. Lower There are five other banking markets in California in capital requirements allow these foreign banking orgawhich the Bank of California competes and Applicant nizations a clear advantage in many aspects of their may be viewed as a potential entrant. However, none competition with domestic banking organizations, inof these markets is considered highly concentrated and cluding pricing of services and bidding for domestic there are numerous potential entrants into each of bank acquisitions. these markets. We believe, therefore, that the principles of compet- Accordingly, the Board has determined that con- itive equality and national treatment require that forsummation of this proposal would not have significant eign banking organizations that have applied to acadverse effects on either existing or potential competi- quire a domestic bank be judged against comparable tion in California or in any relevant banking market. financial and managerial standards, including the The Board has also determined that considerations Board's capital adequacy guidelines, as would be regarding the convenience and needs of the communi- applicable to domestic banking organizations. In our ties to be served are consistent with approval of this view, even after making an appropriate adjustment for application. differences between foreign and domestic regulatory The financial and managerial resources of Applicant and banking practices and requirements, including are also consistent with its acquisition of Bank of recognition of Applicant's portfolio of securities of California International Corporation. This acquisition publicly held Japanese companies, Applicant's capital would result in the continuation of the international position does not meet the Board's capital guidelines services currently provided, and is consistent with the for comparably sized domestic bank holding compapurposes of the Edge Act. Accordingly, the Board nies. Further, in making this adjustment, we note finds that the indirect acquisition of Bank of California some uncertainty as to the appropriate valuation of International Corporation by Applicant would be in other securities held by Applicant. Accordingly, bethe public interest. cause a domestic banking organization with a capital and financial position comparable to Applicant's Based on all the facts of record and the commitwould not be permitted to make this acquisition, we ments made by Applicant and subject to the conditions would deny this application. explained above, the Board has determined that the applications under section 3 of the Act and the Edge Act should be, and hereby are, approved. The acquisi- May 14, 1984 tion shall not be made before the thirtieth calendar day following the date of this Order, or later than three months after the date of this Order, unless such time is extended for good cause by the Board or by the Monarch Bancorp Federal Reserve Bank of San Francisco, pursuant to Laguna Niguel, California delegated authority. By order of the Board of Governors, effective Order Approving Formation of a Bank Holding May 14, 1984. Company Monarch Bancorp, Laguna Niguel, California, has Voting for this action: Chairman Volcker and Governors Teeters and Gramley. Voting against this action: Governors applied for the Board's approval under section 3(a)(1) Martin and Rice. Absent and not voting: Governors Wallich of the Bank Holding Company Act (12 U.S.C. and Partee. § 1842(a)(1)) ("Act"), to become a bank holding company by acquiring 100 percent of the voting shares WILLIAM W. WILES of Monarch Bank, Laguna Niguel, California [SEAL] Secretary of the Board ("Bank"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 521 Notice of the application, affording opportunity for By order of the Board of Governors, effective interested persons to submit comments has been given May 16, 1984. in accordance with section 3(b) of the Act. The time for filing comments has expired, and the Board has Voting for this action: Vice Chairman Martin and Goverconsidered the application and all comments received nors Partee, Rice and Gramley. Absent and not voting: in light of the factors set forth in section 3(c) of the Act Chairman Volcker and Governors Wallich and Teeters. (12 U.S.C. § 1842(c)). Applicant, a nonoperating California corporation WILLIAM W. WILES [SEAL] Secretary of the Board with no subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Bank, which holds deposits of $48.3 million.1 Upon acquisition of Bank, Applicant would control the 175th largest commercial bank in California, holding 0.02 percent of National Bancshares Corporation of Texas deposits in commercial banks in the state. San Antonio, Texas Bank is the 144th largest of 162 commercial banking organizations in the Los Angeles banking market and Order Approving Acquisition of Bank holds 0.03 percent of the deposits of commercial banks in the market.2 Applicant's principals are not affiliated National Bancshares Corporation of Texas, San Antowith any other banking organization in the relevant nio, Texas, a bank holding company within the meanmarket, and consummation of the proposed transac- ing of the Bank Holding Company Act of 1956, as tion would not result in any adverse effects upon amended (12 U.S.C. § 1841 et seq.) ("Act"), has competition or in an increase in the concentration of applied for the Board's approval under section 3(a)(3) banking resources in any relevant area. Accordingly, of the Act (12 U.S.C. § 1842(a)(3)), to acquire all of the the Board concludes that competitive considerations voting shares of Parkdale Bank, Corpus Christi, Texas are consistent with approval. ("Bank"). The financial and managerial resources and future Notice of the application, affording opportunity for prospects of Applicant and Bank are considered gener- interested persons to submit comments and views, has ally satisfactory, particularly in light of Applicant's been given in accordance with section 3(b) of the Act. commitment to inject additional capital into Bank and The time for filing comments and views has expired, eliminate its reliance on brokered deposits. Thus, the and the Board has considered the application and all Board concludes that considerations relating to bank- comments received in light of the factors set forth in ing factors are consistent with approval, as are consid- section 3(c) of the Act. erations relating to the convenience and needs of the Applicant, the tenth largest commercial banking community to be served. Accordingly, based on the organization in Texas, controls 20 banking subsidiaries foregoing and other facts of record, the Board has with total deposits of approximately $1.8 billion, repdetermined that consummation of the transaction resenting 1.5 percent of the total deposits in commerwould be consistent with the public interest and that cial banks in the state.1 Bank, with total deposits of the application should be approved. approximately $118.7 million, is the sixty-ninth largest On the basis of the record, the application is ap- commercial banking organization in Texas and conproved for the reasons summarized above. The trans- trols less than 0.1 percent of the total deposits in action shall not be consummated before the thirtieth commercial banks in the state. Upon consummation of calendar day following the effective date of this Order this transaction, Applicant would remain the tenth or later than three months after the effective date of largest commercial banking organization in Texas and this Order, unless such period is extended for good would control 1.6 percent of the total deposits in cause by the Board or by the Federal Reserve Bank of commercial banks in the state. Accordingly, it is the San Francisco acting pursuant to delegated authority. Board's view that consummation of this transaction would not have any significantly adverse effects on the 1. Deposit data are as of March 31, 1983, and market data are as of June 30, 1982. 1. Unless otherwise noted, deposit data are as of June 30, 1983, and 2. The Los Angeles banking market is approximated by the Los reflect bank holding company formations and acquisitions approved Angeles RMA. as of December 31, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

522 Federal Reserve Bulletin • June 1984 concentration of commercial banking resources in By order of the Board of Governors, effective Texas. May 24, 1984. Both Applicant and Bank compete in the Corpus Christi, Texas, banking market.2 Applicant is the Voting for this action: Vice Chairman Martin and Goverfourth largest of 29 banking organizations in the mar- nors Wallich, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker and Governor Partee. ket, with 6.1 percent of total deposits in commercial banks in the market. Bank ranks sixth in the Corpus JAMES MCAFEE Christi market, and holds 5.7 percent of market depos- [SEAL] Associate Secretary of the Board its. Upon acquisition of Bank, Applicant would become the third largest banking organization in the market, controlling 11.8 percent of the total deposits in commercial banks in the market. The Corpus Christi banking market is only moder- NOTE: The following Dissenting Statement refers to ately concentrated, with a four-firm concentration the Boards' Order of April 24, 1984 regarding the ratio of 57.7 percent and a Herfindahl-Hirschman application of Omaha National Corporation to Index ("HHI") of 1189. Consummation of this propos- acquire First National Lincoln Corp., 70 Federal al would raise the four-firm concentration to 63.4 Reserve Bulletin 447 (1984). percent, the HHI would increase by 69 points to 1258, and the market would remain only moderately concentrated.3 In addition, numerous banking organizations, Dissenting Statement of Chairman Volcker including several of the state's largest banking organizations, would remain in the market after consumma- The application approved today by the Board repretion of the proposal. On the basis of these and other sents one of the first transactions proposed under the facts of record, the Board has determined that con- new Nebraska legislation authorizing multibank holdsummation of this proposal would not have a signifi- ing companies. It involves the acquisition by the cantly adverse effect on existing competition in the largest banking organization in Omaha, Nebraska's Corpus Christi banking market. largest city, of the largest banking organization in The financial and managerial resources of Applicant Lincoln, Nebraska's second largest city, (First Naand Bank are considered generally satisfactory and tional Lincoln Corporation ("Company")). These ortheir future prospects appear favorable. Consider- ganizations are, respectively, the second and fifth ations relating to the convenience and needs of the largest banking organizations in the State. community to be served also are consistent with In view of the competitive and structural factors approval of the application. Accordingly, the Board involved, particularly in the Lincoln banking market, has determined that consummation of the transaction this case raises a significant issue as to the applicabilwould be consistent with the public interest and that ity of the potential competition doctrine. The Lincoln the application should be approved. market, on the basis of the deposits held by commer- On the basis of the record and for the reasons cial banking organizations, is highly concentrated, and summarized above, this application is hereby ap- there are only a few banking organizations in the state proved. The transaction shall not be consummated with resources comparable to that of Applicant so as before the thirtieth calendar day following the effective to make them likely entrants into this market. In date of this Order, or later than three months after the addition, Company controls over 48 percent of deposeffective date of this Order, unless such period is its in commercial banks in the market. Finally, the extended for good cause by the Board or by the Lincoln market is attractive for entry, considering the Federal Reserve Bank of Dallas, acting pursuant to proximity of Lincoln to Omaha (where Applicant is delegated authority. headquartered), and the fact that Lincoln is the second largest of the three major banking markets in Nebraska. In these circumstances, the Board's proposed probable future competition guidelines call for intensive 2. The Corpus Christi banking market is approximated by the examination of the effect of the proposal on such Corpus Christi Standard Metropolitan Statistical Area, which consists future competition. The majority of the Board was of Nueces and San Patricio counties in Texas. 3. Under the United States Justice Department Merger Guidelines persuaded that the proposed acquisition was not likely (June 14, 1982), a market in which the post-merger HHI is between to result in significant adverse effects on probable 1000 and 1800 is considered moderately concentrated. In such marfuture competition in the Lincoln market because of kets, 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. the actual and potential competition afforded by thrift Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 523 institutions and because they felt that there were a should be invoked only when the weight of all the number of other probable future commercial bank evidence is strong. However, I believe the factors entrants into the market, including Nebraska banking present in Applicant's proposed acquisition of Compaorganizations with assets of less than $500 million but ny would meet these standards, and, accordingly, I more than $100 million. would deny this application. I do not question the relevance of taking into account competition from thrift institutions, and make April 24, 1984 such allowance in my own judgment. I remain concerned, however, about the affiliation of the dominant banking organizations in each of the two largest and Rainwood Corporation concentrated banking markets in Nebraska, a state in Omaha, Nebraska which there are essentially only three other of banking organizations with resources comparable to that of Order Approving Acquisition of a Bank Holding Applicant or Company. Company I agree with the majority that the Lincoln market presents an attractive prospect for entry. There is also Rainwood Corporation, Omaha, Nebraska, a bank clearly ample opportunity for Applicant to enter the holding company within the meaning of the Bank market on a basis other than acquiring the largest and Holding Company Act of 1956, as amended (12 U.S.C. dominant institution in it. Instead, the chosen mode of § 1841 et seq.) ("Act"), has applied for the Board's entry would appear to strengthen Company's already approval under section 3(a)(3) of the Act (12 U.S.C. significant market position, and to reduce the prospect § 1842(a)(3)) to acquire all of the voting shares of of deconcentration of the market and enhanced com- Forest City Limited, Forest City, Iowa ("Company"), petition in the future. Specifically, affiliation of Appli- and thus indirectly to acquire Company's only subsidcant and Company would serve to widen the substan- iary bank, Forest City Bank & Trust Company, Forest tial gap between Company and the other commercial City, Iowa ("Bank"). banking organizations in the market as well as in the Notice of the application, affording opportunity for state. interested persons to submit comments and views, has My point of difference with the majority is essential- been given in accordance with section 3(b) of the Act. ly that I would give less weight to the competitive The time for filing comments and views has expired, capabilities of the smaller commercial banking organi- and the Board has considered the application and all zations in Nebraska that the majority has viewed as comments received in light of the factors set forth in probable future entrants into the Lincoln banking section 3(c) of the Act (12 U.S.C. § 1842(c)). market. Six of these smaller firms control assets of less Applicant, a one-bank holding company, controls than $250 million, ranging in amount from $105 million Valley State Bank of Rock Valley, Sioux City, Iowa to $243 million. I am not convinced by the record that ("Valley Bank"). Valley Bank, with $31.1 million in these institutions have the resources to enter the total deposits,1 is the 203rd largest of 645 commercial Lincoln market with a reasonable prospect of produc- banks in Iowa and controls about 0.1 percent of the ing a significant deconcentrating effect. total deposits in commercial banks in the state. Bank, The standards established in Mercantile Texas with $28.4 million in total deposits, is the 239th largest Corp. v. Board of Governors1 for application of the commercial bank in Iowa and controls 0.1 percent of probable future competition doctrine, standards re- the total deposits in commercial banks in the state. flected in the Board's proposed guidelines for assuring Upon consummation of the proposed transaction, Approbable future competition, are quite rigorous. Under plicant would control nearly 0.3 percent of the total conditions existing in most banking markets today, deposits in commercial banks in Iowa. The Board particularly in light of the competition afforded by concludes that acquisition of Bank would have no thrift institutions, it has been the Board's experience significant effects upon the concentration of banking that these standards would proscribe only a limited resources in Iowa. number of proposed market extension mergers. I agree Bank is the fourth largest of seven banking organizathat the criteria for denying an application on grounds tions in the Hancock County banking market,2 conof potential future competition should indeed be stringent, should take account of thrift competition, and 1. All banking data are as of December 31, 1982. 2. The Hancock County banking market includes Hancock County and the southern half of Forest Township in Winnebago County, 1. 638 F.2d 1255 (5th Cir. 1981). Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

524 Federal Reserve Bulletin • June 1984 trolling approximately 15.4 percent of the deposits in (12 U.S.C. § 1841 et seq.) ("Act"), has applied for the commercial banks in that market. Valley Bank cur- Board's approval under section 3(a)(5) of the Act rently does not operate in the Hancock County bank- (12 U.S.C. § 1842(a)(5)), to acquire the successor by ing market; Valley Bank's nearest office is located merger to Colonial Bancorp, Inc., Waterbury, Conmore than 130 miles from Bank's sole office in Forest necticut ("Colonial"), also a bank holding company, City. The Board finds, therefore, that the proposed and thereby to acquire Colonial Bank, Waterbury, acquisition would not eliminate any existing competi- Connecticut. In addition, Applicant has applied for the tion. The proposal also would not have any significant Board's approval under section 4(c)(8) of the Act adverse effects on probable future competition, be- (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(2) of the cause the Hancock County banking market is neither Board's Regulation Y (12 C.F.R. § 225.23(a)(2)) to highly concentrated nor attractive for entry. acquire Colonial's nonbanking subsidiaries: Colbanc The financial and managerial resources of Appli- Realty Corporation, Waterbury, Connecticut ("Realcant, Company, and their subsidiaries are regarded as ty"), which engages in mortgage banking activities, generally satisfactory, and their prospects appear fa- and Colbanc Leasing Corporation, Waterbury, Convorable, based on certain commitments made by Ap- necticut ("Leasing"), which leases personal property. plicant in connection with this application. The Board These activities have been determined by the Board to also concludes that considerations relating to conve- be closely related to banking and permissible for bank nience and needs of the community to be served are holding companies (12 C.F.R. § 225.25(b)(1) and (5)). consistent with approval of the application. Accord- Notice of these applications, affording an opportuniingly, the Board's judgment is that the proposed ty for interested persons to submit comments, has transaction would be in the public interest and that the been given in accordance with sections 3 and 4 of the application should be approved. Act (49 Federal Register 6012 (1984)). The time for On the basis of the record and for the reasons filing comments has expired, and the Board has condiscussed above, the application hereby is approved. sidered the applications and all comments received in The transaction shall not be consummated before the light of the factors set forth in section 3(c) of the Act thirtieth day after the effective date of this Order, or (12 U.S.C. § 1842(c)) and the considerations set forth later than three months after the effective date of this in section 4(c)(8) of the Act, including the comments of Order, unless such period is extended for good cause Citicorp, New York, New York, challenging the conby the Board or by the Federal Reserve Bank of stitutionality of the Connecticut statute under which Chicago, pursuant to delegated authority. the proposed acquisition is to be made. By order of the Board of Governors, effective Applicant, with nine banking subsidiaries, is the May 21, 1984. largest commercial banking organization in Massachusetts and New England and has consolidated assets of Voting for this action: Chairman Volcker and Governors $19.5 billion and total domestic deposits of $5.9 billion, Martin, Wallich, Partee, Teeters, and Gramley. Absent and representing 20.2 percent of the total deposits in not voting: Governor Rice. commercial banks in Massachusetts." Colonial, the fourth largest commercial banking organization in JAMES MCAFEE Connecticut, has total assets of $1.4 billion and total [SEAL] Associate Secretary of the Board domestic deposits of $1.2 billion, representing 8.0 percent of total deposits in commercial banks in Connecticut. Upon consummation of the proposed transaction, Applicant would remain the largest bank hold- Orders Issued Under Sections 3 and 4 of Bank ing company in New England in terms of both assets Holding Company Act and domestic deposits. Applicant's nine banking subsidiaries operate in ten Bank of Boston Corporation of the fourteen Massachusetts banking markets,2 as well as in the Massachusetts portion of the Provi- Boston, Massachusetts dence, Rhode Island, banking market. Colonial's sole banking subsidiary operates in seven of the ten Con- Order Approving Acquisition of a Bank Holding Company and Companies Engaged in Mortgage Banking and Leasing Activities Bank of Boston Corporation, Boston, Massachusetts, 1. Banking data are as of December 31, 1983. 2. These Massachusetts banking markets are Boston, Springfield, a bank holding company within the meaning of the Worcester, New Bedford, Fall River, Cape Cod, Fitchburg-Leomin- Bank Holding Company Act of 1956, as amended ster, Pittsfield, Greenfield, and Amherst-Northampton. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 525 necticut banking markets.3 Inasmuch as none of Appli- markets.5 On the basis of these considerations and cant's banking subsidiaries operates in Connecticut other facts of record, the Board concludes that the and Colonial's banking subsidiary does not operate in elimination of Colonial as a probable future entrant Massachusetts, the proposed transaction would not would not have a substantial anticompetitive effect in eliminate any significant existing competition in any the ten Massachusetts markets served by Applicant. relevant banking market. The financial and managerial resources of Applicant The Board has considered the effects of this propos- and Colonial are regarded as generally satisfactory, al on probable future competition and also has exam- and their prospects appear favorable. Considerations ined the proposal in light of the Board's proposed relating to the convenience and needs of the communiguidelines for assessing the competitive effects of ties to be served also are consistent with approval of market-extension mergers or acquisitions.4 In evaluat- the application. ing the effects of a proposal on probable future compe- Section 3(d) of the Act prohibits the Board from tition, the Board considers market concentration, the approving any application by a bank holding company number of probable future entrants into the market, to acquire any bank located outside of the state in the size of the bank to be acquired, and the attractive- which the operations of the bank holding company's ness of the market for entry on a de novo or foothold banking subsidiaries are principally conducted, unless basis absent approval of the acquisition. After consid- such acquisition is "specifically authorized by the eration of these factors in the context of the specific statute laws of the State in which such bank is located, facts of this case, the Board concludes that consum- by language to that effect and not merely by implicamation of this proposal would not have any significant tion." (12 U.S.C. § 1842(d)). Based upon its review of adverse effects on probable future competition in any the Connecticut interstate banking statute,6 the Board relevant market. concludes that Connecticut has by statute expressly With respect to the seven banking markets in Con- authorized, within the meaning of the Douglas Amendnecticut in which Colonial operates, the record shows ment, a Massachusetts bank holding company, such as that there are numerous other probable future entrants Applicant, to acquire a Connecticut bank or bank into these markets. At least nine commercial banking holding company, such as Colonial.7 organizations with assets over $1 billion, including five This application raises a question under the United in Massachusetts (other than Applicant) and three in States Constitution concerning the constitutionality of Rhode Island, can be identified as probable future a provision of the Connecticut interstate banking statentrants into the seven relevant Connecticut banking ute that excludes bank holding companies located markets. In addition, in three of the seven markets outside of New England from acquiring banks in (Bridgeport, New Haven, and Danbury), the market is Connecticut.8 The Board addressed the constitutionalnot highly concentrated and in two other markets ity of the Connecticut law in its Order approving the (Hartford and Salisbury), Colonial is not a market application of Bank of New England Corporation, leader. In view of these considerations and other facts Boston, Massachusetts, to acquire a bank in Connectiof record, the Board concludes that elimination of cut.9 After review of the record and in reliance on a Applicant as a probable future entrant into markets detailed analysis of the constitutional issues included served by Colonial would not have a substantial anti- in an Appendix to the Board's order, the Board competitive effect in those markets. concluded that, while the issue is not free from doubt, With respect to the ten Massachusetts banking there is no clear and unequivocal basis for a determimarkets in which Applicant operates, two of these markets (Boston and Cape Cod) are not highly concentrated. With respect to the eight other relevant markets, the record discloses a minimum of nine commer- 5. Applicant has less than a 1 percent market share in the Provicial banking organizations, including four in dence, Rhode Island, banking market. Accordingly, the proposed Connecticut (other than Colonial) and three in Rhode merger's effect upon probable future competition in this market would Island, as probable future entrants into each of the be insignificant. 6. 1983 Conn. Acts 411 (Reg. Sess.) entitled "An Act Concerning Interstate Banking," § 2. 7. See Bank of New England Corporation, 70 FEDERAL RESERVE BULLETIN 374, 375 (1984). 8. New England bank holding companies include those located in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, 3. These Connecticut banking markets are Hartford, New Haven, and Vermont. Bridgeport, Waterbury, Danbury, Torrington, and Salisbury. 9. Bank of New England Corporation, supra. The Board addressed 4. 47 Federal Register 9017 (March 3,1982). Although the proposed the constitutionality of a similar provision in Massachusetts law in policy statement has not been adopted by the Board, the Board is approving the application of Hartford National Corporation, Hartford, using the policy guidelines in its analysis of the effects of a proposal on Connecticut, to acquire a Massachusetts bank. Hartford National probable future competition. Corporation, 70 FEDERAL RESERVE BULLETIN 353 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin • June 1984 nation that the Connecticut statute is inconsistent with rives $19.0 million in accounts receivable and inventhe Constitution.10 tory loans from Connecticut, representing only 0.4 Subsequent to the Board's approval of those appli- percent of Applicant's total commercial loans. Firstcations, the protestants petitioned for judicial review bank, which engages in leasing activities, has lease of the Board's orders on the sole ground that the balances outstanding from Connecticut customers of Connecticut and Massachusetts interstate banking only $8 million, representing 4 percent of its lease laws are unconstitutional." While the court has expe- portfolio. dited its review of those cases, the court has not yet The Board believes that this proposal would have issued an opinion regarding the merits of the protes- only a minimal impact on existing competition among tants' claims. In the absence of a judicial determina- the nonbanking subsidiaries of Applicant and Colonial. tion regarding the constitutionality of the Connecticut Moreover, this proposal would have no significant interstate banking statute, the Board believes that it is effect on existing competition between Colonial's subappropriate in this case to apply the analysis articulat- sidiary bank and FNB. Given the limited scope of the ed in the Bank of New England and Hartford National activities of Applicant's nonbanking subsidiaries in Corporation cases. Accordingly, on the basis of the Connecticut, the Board concludes that this transaction Board's finding in those cases regarding the Connecti- would not have any significant adverse effect on cut statute, the Board has determined not to deny competition. Bank of Boston Corporation's application on the There is no evidence in the record to indicate that grounds urged by the protestant that the Connecticut approval of this proposal would result in undue constatute is unconstitutional. centration of resources, unfair competition, conflicts In addition to seeking judicial review, the protes- of interest, unsound banking practices, or other adtants in the Bank of New England and Hartford verse effects. Accordingly, the Board has determined National Corporation cases petitioned the court to that the balance of the public interest factors it must stay the effectiveness of the Board's orders pending consider under section 4(c)(8) of the Act is favorable judicial review. On April 24, 1984, the court granted and consistent with approval of the applications to the protestants' motions to stay the effectiveness of acquire these nonbanking subdidiaries. the Board's orders. In view of this action by the court, Based on the foregoing and other facts of record, the the Board has considered whether to stay the effec- Board has determined that the applications under tiveness of its action in this case pending the outcome sections 3 and 4 of the Act should be and hereby are of the litigation regarding the constitutionality of the approved. The acquisition of Colonial's bank subsid- Connecticut statute. The protestant in this case has iary shall not be consummated before the thirtieth not requested a stay, and under 5 U.S.C. § 705, the calendar day following the effective date of this Order Board may not be authorized to stay its action absent a or later than three months after the effective date of petition for judicial review. Consequently, the Board this Order, unless such period is extended for good has determined not to stay, on its own motion, the cause by the Board or by the Federal Reserve Bank of effectiveness of its decision in this case at this time. Boston, pursuant to delegated authority. The approval Applicant has also applied, under section 4(c)(8) of of Applicant's proposal to acquire Colonial's nonbankthe Act, to acquire two nonbanking subsidiaries of ing activities is subject to the conditions set forth in Colonial—Realty and Leasing. Neither of these sub- Regulation Y, including sections 225.4(d) and sidiaries conducts any business in Massachusetts. 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), Two of Applicant's existing subsidiaries, FNB Finan- and to the Board's authority to require such modificacial Company, Boston, Massachusetts ("FNB"), and tion or termination of the activities of a holding Firstbank Financial Corporation, Boston, Massachu- company or any of its subsidiaries as the Board finds setts ("Firstbank"), operate in Connecticut. FNB, necessary to assure compliance with the provisions which engages in commercial finance activities, de- and purposes of the Act and the Board's regulations and orders issued thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective 10. It is the Board's policy that it will not hold a state law May 18, 1984. unconstitutional in the absence of clear and unequivocal evidence of the inconsistency of the state law with the United States Constitution. Voting for this action: Chairman Volcker and Governors See NCNB Corp., 68 FEDERAL RESERVE BULLETIN 54, 56 (1982); Bank of New England Corporation, supra, 70 FEDERAL RESERVE Partee, Teeters, Rice, and Gramley. Absent and not voting: BULLETIN at 376. Governors Martin and Wallich. 11. Northeast Bancorporation, Inc. v. Board of Governors of the Federal Reserve System, No. 84-4047 (2d Cir. filed March 27, 1984); Citicorp v. Board of Governors of the Federal Reserve System, Nos. JAMES MCAFEE 84-4051 and 84-4053 (2d Cir. filed March 30, 1984). [SEAL] Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 527 Bank of New York Company, Inc. Connecticut has enacted a regional interstate bank- New York, New York ing statute that, by its terms, allows bank holding companies located only in those New England states Order Denying Acquisition of a Bank Holding that have passed interstate banking laws similar to that Company enacted by Connecticut to acquire banks located in Connecticut.2 BNY argues that, in enacting this stat- Bank of New York Company, Inc., New York, New ute authorizing the acquisition of Connecticut banks York ("BNY"), a bank holding company within the by other New England bank holding companies, Conmeaning of the Bank Holding Company Act of 1956, as necticut has eliminated the federal bar of the Douglas amended (12 U.S.C. § 1841 et seq.){"Act"), has Amendment to acquisition of Connecticut banks by all applied for the Board's approval under section 3(a) of other out-of-state bank holding companies. BNY asthe Act (12 U.S.C. § 1842(a)) to acquire 95.3 percent of serts that, under the literal terms of the Douglas the voting shares of Northeast Bancorp, Inc., New Amendment, once a state allows any out-of-state bank Haven, Connecticut ("Northeast"), also a bank hold- holding company to purchase a bank within the state, ing company under the Act. BNY would thereby the state has authorized the acquisition of banks in the acquire control of Northeast's subsidiary banks, state by all bank holding companies, wherever locat- Union Trust Company, Stamford, Connecticut, and ed. Under BNY's reading of the Douglas Amendment, Security Bank and Trust, Waterbury, Connecticut. even those New York holding companies that the BNY has also applied under section 4(c)(8) of the Act Connecticut statute was designed to exclude, such as (12 U.S.C. § 1843(c)(8)) and section 225.23(a)(2) of the BNY, would be eligible to acquire a. bank in Con- Board's Regulation Y (12 C.F.R. § 225.23(a)(2)) to necticut. acquire Northeast's nonbank subsidiaries, NBI Mort- The State of Connecticut and the other protestants gage Investment Corporation and Union Financial argue that the Douglas Amendment authorizes the Services Corporation, both of New Haven, Con- states to limit acquisitions of banks within a state to necticut. out-of-state bank holding companies located in speci- Notice of the applications, affording opportunity for fied states and that, in any event, BNY's interpretainterested persons to submit comments, has been tion is inconsistent with the meaning and commonly given in accordance with sections 3 and 4 of the Act. accepted understanding of the Douglas Amendment, (49 Federal Register 9618, 10580 (1984)). The time for its legislative history, and prior Board and judicial filing comments has expired, and the Board has re- construction of its terms. ceived comments from Bank of New England Corpo- The Board has considered the arguments advanced ration, Boston, Massachusetts, CBT Corporation, by BNY in support of its position. BNY bases its Hartford, Connecticut, and the Independent Bankers position almost entirely on textual analysis of the Association of America. In addition, the State of Douglas Amendment's provision that grants the states Connecticut has recommended denial of the applica- authority to remove the federal bar on interstate tion, thus triggering the requirement in section 3(b) of acquisitions. The Douglas Amendment prohibits an the Act for a hearing on the application. The State of out-of-state bank holding company from acquiring a Connecticut has waived its rights to an immediate bank located in another state "unless the acquisition hearing in order to permit the Board to evaluate of such shares or assets of a State bank by an out-ofwhether this proposed interstate acquisition would be state bank holding company is specifically authopermissible under the Douglas Amendment, before rized ..." (emphasis supplied). BNY asserts that considering the substantive merits of the application.1 Congress, in using the indefinite article "an," rather BNY has agreed to this procedure. than a restrictive modifier like "such," intended that a state statute that authorized acquisition of a bank in the state by "any" or "a single" out-of-state bank holding company would remove the Douglas Amend- 1. The Douglas Amendment provides that: ment's prohibition on interstate acquisitions by bank [N]o application . . . shall be approved under this section which will permit any holding companies of banks in that state. bank holding company or any subsidiary thereof to acquire, directly or indirectly, any voting shares of, interest in, or all or substantially all of the assets of any The Board is not convinced that the use of the additional bank located outside of the State in which the operations of such bank article "an" should be accorded such decisive weight holding company's banking subsidiaries were principally conducted on the effective date of this amendment or the date on which such company became a bank holding company, whichever is later, unless the acquisition of such shares or assets of a State bank by an out-of-State bank holding company is specifically authorized by the statute laws of the State in which such bank is located, by language to that effect and not merely by implication. For the purposes of this 2. 1983 Conn. Acts. 411 (Reg. Sess.). In view of the Board's section, the State in which the operations of a bank holding company's subsidiar- findings in this Order regarding the Douglas Amendment, the Board ies are principally conducted is that State in which total deposits of all such has not considered other provisions of the Connecticut statute that banking subsidiaries are largest. 12 U.S.C. § 1842(d). may prohibit this acquisition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 Federal Reserve Bulletin • June 1984 as suggested by BNY, particularly where such a dent Bankers, supra, 511 F.2d at 1297.6 The court also reading would be contrary to the commonly accepted noted that "nothing in the language of [the Douglas and understood interpretation of the Douglas Amend- Amendment] points to [the] result" that "the states ment, the legislative history and purposes of the can only decide whether to extend the right to acquire Amendment, and Board and judicial practice in apply- in-state banks to all out-of-state bank holding compaing the Amendment. The Board believes that the nies or to prohibit such acquisitions entirely." Id. at article "an" must be read in the context of the entire 1296. state authorization provision in the Douglas Amend- The states and the Board have consistently conment. Based on the terms and structure of the Act and strued the Douglas Amendment to authorize the states its purposes, the Board concludes that the phrase to limit or to restrict entry by out-of-state bank holding "unless the acquisition of such shares or assets of a companies. The Board has approved a number of State bank by an out-of-State bank holding company is applications under statutes that admit only certain specifically authorized ..." contained in the Douglas bank holding companies or that admit bank holding Amendment must be read, as the courts3 and the companies only under certain circumstances and that Board have previously read the phrase, to refer to the exclude all other bank holding companies. For examspecific acquisition or type of acquisition for which ple, the Board has considered the Douglas Amend- Board approval is sought under the Act. ment in acting upon applications by "grandfathered" In this regard, the language of the Douglas Amend- out-of-state bank holding companies, by holding comment, in requiring that interstate bank acquisitions by panies seeking to acquire limited purpose "creditout-of-state bank holding companies be authorized by card" banks in other states, by holding companies a state's statute laws "by language to that effect and seeking to acquire failing out-of-state banks and, most not merely by implication," reflects a Congressional recently, by holding companies seeking to acquire outconcern that the states make a deliberate and express of-state banks pursuant to reciprocal or regional interdecision with respect to interstate banking. This clause state banking statutes.7 With respect to regional interof the Douglas Amendment is inconsistent with a state banking statutes, the Board considered whether reading, such as that proposed by BNY, that would the discrimination inherent in such statutes against undermine a state's policy determinations by causing bank holding companies located in certain states is the states inadvertently to allow unlimited interstate permissible under the Douglas Amendment and the bank acquisitions. United States Constitution. The Board concluded that, In effect, BNY's argument would compel the states while the issue is not free from doubt, there is no clear to adopt an "all or nothing" approach in permitting the and unequivocal basis to find these statutes to be entry of out-of-state bank holding companies.4 The inconsistent with the Constitution. Board has recently considered this issue and conclud- BNY's interpretation of the Douglas Amendment ed: "Nothing in the history of the Douglas Amend- would transform the numerous state statutes that ment suggests that the states were to be permitted only allow acquisition of banks by limited classes of out-ofto choose between not allowing out-of-state bank state bank holding companies into unlimited-entry holding companies to enter, and allowing completely statutes. BNY's argument, if accepted, would cause free entry."5 Similarly, the United States Court of full interstate banking in those states, a result contrary Appeals for the District of Columbia Circuit, the only to the Congressional intent underlying the Douglas court to examine this issue, has stated that it was Amendment of allowing the states to apply their own "obvious" that "the intent of the Douglas Amend- policies regarding interstate banking to the acquisition ment was to assure that the states had sufficient power by out-of-state bank holding companies of banks locatto control the expansion of bank holding companies ed within the borders of a state. Such a sweeping across state lines so that such expansion would not reinterpretation of the Douglas Amendment should contravene state policy" and that adoption of an appropriately be accomplished only by legislative interpretation similar to that urged by BNY in this case action. "would rob the states of this power." Iowa Indepen- 6. In Conference of State Bank Supervisors v. Conover, 715 F.2d 604, 615 (D.C. Cir. 1983), cert, denied, 52 U.S.L.W. 3720 (U.S. April 2, 1984), the court reaffirmed its reading of the authority granted 3. See Iowa Independent Bankers Association v. Board of Gover- to the states under the Douglas Amendment. nors of the Federal Reserve System, 511 F.2d 1288, 1296 (D.C. Cir.), 7. See, e.g., Northwest Bancorporation, 38 Federal Register 21530 cert, denied, 423 U.S. 875 (1975). (1973); Citicorp, 67 FEDERAL RESERVE BULLETIN 181 (1981); Bank- 4. Bank of New England Corporation, 70 FEDERAL RESERVE America Corp., 69 FEDERAL RESERVE BULLETIN 568 (1983); Key BULLETIN 374 (1984). Banks, Inc., 70 FEDERAL RESERVE BULLETIN 57 (1984); Bank of New 5. Id. at 386. England Corporation, 70 FEDERAL RESERVE BULLETIN 374 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 529 For the foregoing reasons, the Board concludes that Inc., Rochester, New York ("Lincoln") and thereby the Douglas Amendment prohibits the Board from indirectly acquire Lincoln First Bank, N.A., Rochesapproving BNY's proposed acquisition of Northeast, ter, New York. In connection with this application, and BNY's application to acquire Northeast pursuant Chase Manhattan RRD, New York, New York, has to section 3(a) of the Act is hereby denied.8 applied for the Board's approval to become a bank The Board's denial of this application is based upon holding company by merger with Lincoln. its reading of the text and purposes of the Douglas Applicant also has applied for the Board's approval Amendment, and nothing in this Order is intended to under section 4(c)(8) of the Act (12 U.S.C. modify the views previously expressed by the Board § 1843(c)(8)) and section 225.23(a)(2) of the Board's concerning interstate banking on a regional, reciprocal Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire basis.9 As the Board noted in its Bank of New England Lincoln First Trust Company of Florida, N.A., Boca Corporation Order, interstate banking is a highly com- Raton, Florida, a company that engages in trust activiplex issue thai: involves the balancing of a number of ties in Florida; Lincoln First Real Estate Credit Corpodifferent considerations. However, if the New En- ration and Lincoln First Mortgage, Inc., both of White gland regional approach to interstate banking is emu- Plains, New York, companies that engage in mortgage lated in other parts of the country, there is a potential banking, financial and investment advising, and comdanger that the result could be to divide the country munity welfare activities; Lincoln Lease/Way, Inc., into a number of banking regions. The Board believes Rochester, New York, a company that engages in that the public policy issues that are raised by the commercial leasing and financing activities; Lincoln First Commercial Corporation, Rochester, New York, regional approach are inherently national and would a company that engages in commercial financing activbe best resolved by Congressional action. ities; and Lincoln First Life Insurance Company, By order of the Board of Governors, effective Phoenix, Arizona, a company that acts as reinsurer for May 15, 1984. credit life and credit accident and health insurance directly related to extensions of credit by Lincoln First Voting for this action: Chairman Volcker and Governors Bank, N.A. These activities have been determined by Martin, Partee, Teeters, Rice, and Gramley. Absent and not voting: Governor Wallich. the Board to be closely related to banking and permissible for bank holding companies (12 C.F.R. JAMES MCAFEE §§ 225.23(b)(1), (2), (3), (4), (5), (6) and (9)). [SEALI Associate Secretary of the Board Notice of the applications, affording opportunity for interested persons to submit comments, has been given in accordance with sections 3 and 4 of the Act The Chase Manhattan Corporation (49 Federal Register 7658 (March 1, 1984)). The time New York, New York for filing comments has expired, and the Board has considered the applications and all comments received Order Approving the Formation and Merger of Bank in light of the factors set forth in section 3(c) of the Act Holding Companies and the Acquisition of (12 U.S.C. § 1842(c)) and the considerations specified Companies Engaged in Insurance, Trust, Leasing, in section 4(c)(8) of the Act.1 Financing, and Mortgage Banking Activities Based on total domestic deposits, Applicant is the largest commercial banking organization in New York, The Chase Manhattan Corporation, New York, New with one subsidiary bank that controls domestic de- York, a bank holding company within the meaning of posits of $26.3 billion,2 representing 14.1 percent of the Bank Holding Company Act ("Act"), has applied total deposits in commercial banks in the state.3 Linfor the Board's approval under section 3 of the Act coln is the fourteenth largest commercial banking (12 U.S.C. § 1842) to acquire Lincoln First Banks, 1. The Board received one comment requesting that the Board require Applicant to provide for cumulative voting rights with regard 8. The Board notes that BNY is not prohibited from acquiring to Applicant's stock. The Bank Holding Company Act does not, Northeast's nonbanking subsidiaries, but it denies the application of however, require that a bank holding company provide for cumulative BNY to acquire these subsidiaries pursuant to section 4(c)(8) of the voting rights. Act since there is no indication that BNY intended to have the Board 2. Unless otherwise indicated, deposit data are as of December 31, decide the proposed acquisition of Northeast's nonbanking subsidiar- 1982. ies on a separate basis. 3. Applicant also controls The Chase Manhattan Bank (U.S.A.), 9. Bank of New England Corporation, supra, 70 FEDERAL RESERVE N.A., Wilmington, Delaware, a bank that is primarily engaged in BULLETIN at 379. credit card activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 Federal Reserve Bulletin • June 1984 organization in the state, with one banking subsidiary Although consummation of the proposal will elimithat controls aggregate deposits of $3 billion, repre- nate existing competition in the Rochester market, the senting 1.6 percent of total deposits in commercial Board believes there are a number of factors that banks in the state. Upon consummation of the pro- mitigate the anticompetitive effects of this proposal. posed acquisition, Applicant's share of total deposits Twelve commercial banks would continue to operate in commercial banks in the state would increase to in the market after consummation of the proposal, approximately 15.7 percent, and Applicant would re- including the largest banking organizations in the main the largest commercial banking organization in state. The Board also has considered the presence of the state. It is the Board's view that consummation of thrift institutions as a factor in analyzing the competithis acquisition would not have a significant adverse tive effects of this proposal. Thrift institutions in the effect on the concentration of commercial banking Rochester market control over half of the total deposresources in New York. its in the market. The largest depository institution in Applicant's subsidiary banks compete directly with the market is a thrift institution that is almost twice the Lincoln's subsidiary banks in six banking markets: the size of Lincoln First Bank, the market's largest com- Metropolitan New York, mid-Hudson, Syracuse, mercial bank. All of the thrift institutions offer a full Utica-Rome, Binghamton, and Rochester banking range of consumer banking services. Several of the markets. thrift institutions are active in commercial real estate The Board is particularly concerned with the com- lending and have begun other commercial lending petitive effect of the proposal as it relates to the activities. Based upon the size and activities of thrift Rochester and Binghamton banking markets. In each institutions in the market, the Board concludes that market, Lincoln is the largest commercial bank and thrift institutions exert a significant competitive influcontrols a substantial portion (in excess of 25 percent) ence that substantially mitigates the anticompetitive of the deposits in commercial banks in the market. effects of the proposal.6 Lincoln's acquisition by Applicant, the largest com- In the Binghamton banking market, Lincoln is the mercial bank in New York, will solidify and increase largest banking organization, controlling deposits of the resulting organization's leading position in these $304.8 million,7 representing 28.9 percent of the total markets. In this case, however, the Board's concern is deposits in commercial banks in the market. Applicant mitigated by several factors, including the significant is the eighth largest banking organization in the Bingactivity of thrift institutions in the markets and the hamton banking market, controlling deposits of $28.7 presence in the markets of numerous other commer- million, representing 2.7 percent of the total deposits cial banking organizations, including the largest insti- in commercial banks in the market. Upon acquisition tutions in the state. of Lincoln, Applicant would become the largest bank- In the Rochester banking market, Lincoln controls ing organization in the market, controlling 31.6 percent the largest commercial banking organization in the of the total deposits in commercial banks in the market, with deposits of $974 million, representing market. 26.3 percent of the deposits of commercial banks in the While consummation of the transaction would elimimarket.4 Applicant is the eighth largest commercial nate existing competition in the Binghamton banking banking organization in the market and controls 2 market, the Board believes that a number of factors percent of deposits of commercial banks in the market. mitigate the anticompetitive effects of the acquisition. After consummation, Applicant would assume Lin- The market's four largest commercial banking organicoln's rank as the largest commercial banking organi- zations control 69.8 percent of the deposits of comzation in the market, and would control approximately mercial banks in the market and, upon consummation, 28.3 percent of the deposits of commercial banks in the the market's HHI would increase by 156 points to market. The Rochester market is concentrated, with 1743. Thus, upon consummation of the proposal, the the four largest commercial banks in the market controlling 77.4 percent of the market's deposits. The HHI in the market would increase by 105 to 1805 after consummation of the proposal.5 post-HHI is 1800 or more, the Department is likely to challenge a merger that produces an increase in the HHI of more than 100 points. 6. If 50 percent of thrift deposits are included in the calculation of 4. The Rochester banking market is defined as Monroe and Wayne market concentration, the combined market share of Bank and Counties; Livingston County excluding the towns of Nunda, Ossian Applicant would be 17.9 percent and the resulting HHI would be 1052. and Portage; Orleans County excluding the town of Shelby, and the 7. The Binghamton market consists of all of Broome and Tioga town of Bergen in Genesee County. Counties and the southern portion of Chenango County in New York, 5. Under the Department of Justice Merger Guidelines, where the and the northern portion of Susquehanna County in Pennsylvania. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 531 Binghamton market would remain moderately concen- deposits of $54.4 million, representing approximately trated as measured by this index.8 In addition, 16 3.8 percent of the total deposits in commercial banks commercial banking organizations would remain in the in the market.12 Lincoln is the thirteenth largest commarket after consummation of the proposal, including mercial banking organization in the market, with dethe largest banking organizations in New York. posits of $20.9 million, representing approximately 1.5 The Board also has considered the influence of thrift percent of the total deposits in commercial banks in institutions in evaluating the competitive effects of this the market. Upon consummation of the proposal, proposal.9 The five thrift institutions that operate in Applicant would become the eighth largest commerthe market control approximately 39 percent of the cial banking organization in the market and control total deposits of banks and thrift institutions in the approximately 5.3 percent of the total deposits in market; and the market's largest depository institution commercial banks in the market. This market is not is a savings bank.10 The record indicates that thrift highly concentrated (the four-firm concentration ratio institutions already exert a considerable competitive is 50.8 percent) and numerous other commercial bankinfluence in the market as providers of consumer ing organizations would remain in the market after transaction accounts and consumer loans. In addition, consummation of the proposal. The HHI in the market all of the thrifts in this market offer commercial is 962 and would increase to 972 upon consummation checking accounts and four of the five thrift institu- of the proposal. tions engage in the business of making commercial In the Syracuse banking market, Applicant is the loans. tenth largest commercial banking organization in the In the Metropolitan New York banking market, market, with deposits of $28.3 million, and controls 1.5 Applicant is the largest commercial banking organiza- percent of total deposits in commercial banks in the tion, with deposits of $24.9 billion, representing ap- market.13 Lincoln is the fourth largest commercial proximately 15.6 percent of the total deposits in com- banking organization in the market, with deposits of mercial banks in the market.11 Lincoln is the 27th $278.8 million, and controls 15.1 percent of the total largest commercial banking organization in the mar- deposits in commercial banks in the market. Upon ket, with deposits of $616.7 million, representing ap- consummation, Applicant would assume Lincoln's proximately 0.4 percent of the total deposits in com- rank as the fourth largest commercial banking organimercial banks in the market. The market is not highly zation in the market and its market share would concentrated (the four-firm concentration ratio is 52.5 increase to 16.6 percent. The Syracuse banking market percent) and there are numerous commercial banks is concentrated (the four-firm concentration ratio is operating in the market. The Herfindahl-Hirschman 80.2 percent); however, numerous commercial bank- Index ("HHI") in the market is 879 and would in- ing alternatives would remain in the market after crease to 891 upon consummation of the proposal. consummation of this proposal.14 The HHI in the In the mid-Hudson banking market, Applicant is the market is 1727 and would increase by only 54 points to ninth largest commercial banking organization, with 1781 as a result of the proposal. In the Utica-Rome banking market, Applicant is the twelfth largest of the 14 commercial banking organizations in the market, with deposits of $13.2 million, representing approximately 1.1 percent of the total deposits in commercial banks in the market.15 Lincoln 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 more likely than not to challenge a merger that produces an increase in the HHI of over 100 points. 9. The Board has previously determined that thrift institutions have become or at least have the potential to become, major competitors of commercial banks. NCNB Bancorporation, 70 FEDERAL RESERVE 12. The mid-Hudson market consists of all of Dutchess and Ulster BULLETIN 225 (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLE- Counties and the northeastern portion of Orange County in New TIN 934 (1983); First Tennessee National Corporation, 69 FEDERAL York. RESERVE BULLETIN 298 (1983). 13. The Syracuse banking market is defined as Onondaga and 10. If 50 percent of the deposits of thrift institutions in the Bingham- Oswego Counties, and the western half of Madison County. ton market are included in the calculation of market concentration, the 14. Under the Department of Justice Merger Guidelines, a market combined market share of Applicant and Lincoln would be 25.0 in which the post-merger HHI is between 1000 and 1800 is considered percent, and the HHI would increase by 96 points to 1530. moderately concentrated. In such markets, the Department is unlikely 11. The Metropolitan New York market is defined to include New to challenge a merger that produces an increase in the HHI of less than York City, Nassau, Putnam, Rockland, Westchester, and western 100 points. Suffolk Counties in New York State; the northeastern two-thirds of 15. The Utica-Rome market is defined to include the eastern half of Bergen County and eastern Hudson County in New Jersey; and Madison County, the southern half of Herkimer County and all of southwestern Fairfield County in Connecticut. Oneida County, all in New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 Federal Reserve Bulletin • June 1984 is the sixth largest commercial banking organization in al bank holding companies. In this regard, Applicant the market, with deposits of $43.3 million, represent- has recently raised approximately $400 million of ing approximately 3.5 percent of the total deposits in primary capital. This proposal would be financed commercial banks in the market. Upon consummation principally through the issuance of nonredeemable of the proposal, Applicant would become the fourth preferred stock and would not involve the incurrence largest commercial banking organization in the market of any significant additional debt by Applicant. and would control approximately 4.6 percent of the Taking into account these factors and all of the facts total deposits in commercial banks in the market. The of record, the Board concludes that financial and Utica-Rome banking market is concentrated (the four- managerial resources of Applicant, Lincoln, and their firm concentration ratio is 80.5 percent), and the HHI subsidiaries are satisfactory and that consummation of in the market is 2956. Upon consummation of this this proposal would be consistent with the Board's proposal, however, the HHI would increase by only 8 policy that a bank holding company maintain its ability points, and numerous other commercial banking orga- to serve as a source of financial strength to its subsidnizations would remain as alternatives for banking iary banks. Considerations relating to the convenience services in the market. and needs of the communities to be served also are After consideration of the above facts and the other consistent with approval of the application. evidence of record, the Board concludes that consum- Applicant also has applied, pursuant to section mation of this proposal would not have any significant 4(c)(8) of the Act, to acquire Lincoln First Life Insuradverse effect on existing competition in any relevant ance Company, Phoenix, Arizona ("LFIC"), a market. wholly-owned subsidiary of Lincoln, which engages in The Board has considered the effects of this propos- the reinsurance of credit-related insurance made by al on probable future competition in the 14 markets in Lincoln's subsidiary bank. Although Applicant curwhich Applicant and Lincoln do not compete directly. rently engages in the reinsurance of credit-related In none of these markets would the proposed merger insurance, no adverse competitive effect would result require intensive analysis under the Board's proposed from this acquisition because the activities of LFIC Guidelines.16 All of the markets in question have more would be limited to insurance directly related to extenthan six probable future entrants. In addition, six of sions of credit made by the subsidiaries of Lincoln. these markets are small markets, as defined by the Applicant also has applied to acquire Lincoln First Guidelines, and of the remaining 10 markets, five are Mortgage Corporation ("LFM") and Lincoln First unconcentrated as measured by the Guidelines. After Real Estate Corporation ("LFREC"), both of White consideration of these factors in the context of the Plains, New York, two companies that engage in specific facts of this case, the Board concludes that mortgage banking activities in the state of New York. consummation of this proposal would not have any Applicant presently engages in mortgage banking acsignificant adverse effects on probable future competi- tivities through its subsidiary, Chase Home Mortgage tion in any relevant market. Corporation. LFREC has been a weak competitor in In evaluating this application, the Board has consid- the mortgage banking field for a number of years and ered the financial and managerial resources of The there are numerous competitors in this area. Thus, Chase Manhattan Corporation and the effect on these Applicant's acquisition of LFIC and LFREC will not resources of the proposed acquisition of Lincoln. The eliminate any significant competition in this area. Board has stated and continues to believe that capital LFREC also engages in community development and adequacy is an especially important factor in the investment advisor activities. To date, LFREC's acanalysis of bank holding company expansion propos- tivities in these fields are negligible and thus do not als, particularly where significant acquisitions are raise any significant competitive concerns. proposed. Applicant also proposes to acquire Lincoln First In this case, the Board notes that Applicant has Trust Company of Florida, Boca Raton, Florida improved its capital position and that its capital ratio is ("Lincoln Trust"), which provides custodial, trust significantly above the minimum level for multination- management and other fiduciary services. Applicant also engages in similar activities through its subsidiary, The Chase Manhattan Trust Company of Florida. Together, these entities control less than 1 percent of 16. "Policy Statement of the Board of Governors of the Federal the trust assets in Palm Beach County and the state of Reserve System for Assessing Competitive Factors Under the Bank Florida. Accordingly, consummation of this proposal Merger Act and the Bank Holding Company Act," 47 Federal Register 9017 (March 3, 1982). While the proposed policy statement will have little effect on competition in any market. has not been adopted by the Board, the Board is using the policy Applicant, through its subsidiary Chase Commercial guidelines as part of its analysis of the effect of a proposal on probable future competition. Corporation, engages in leasing and commercial fi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 533 nancing activities. Lincoln operates two subsidiaries tial decrease in competition in several banking markets that engage in these activities, Lincoln Lease/Way and in upstate New York. These markets are already Lincoln First Commercial Corporation. Lincoln's sub- concentrated, and the consummation of this proposal sidiaries engage in these activities in upstate New will result in increases in Applicant's market share that York where Applicant's activities are minimal. In are substantially above the levels set by the Departaddition, there are numerous bank and nonbank com- ment of Justice's Guidelines. petitors in both the leasing and commercial financing The Board continues to rely heavily on thrift instituareas. tions as the main factor to mitigate the adverse com- Accordingly, it does not appear that Applicant's petitive impact of a proposal. Although the impact of acquisition of these nonbanking subsidiaries would thrift institutions in these markets is substantial in have any significant adverse effects upon competition terms of the deposits they hold, the record still does in any market. Furthermore, there is no evidence in not indicate that these institutions provide the range of the record to indicate that approval of this proposal services that would indicate that they should be conwould result in undue concentration of resources, sidered significant competitors of commercial banks. decreased or unfair competition, conflicts of interests, Based on the record in this case, I cannot concur in unsound banking practices or other adverse effects on the majority's apparent decision to include thrifts in the public interest. Accordingly, the Board has deter- the commercial banking product market to a signifimined that the balance of the public interest factors it cant extent in order to reduce the level of concentramust consider under section 4(c)(8) of the Act is tion to acceptable levels. Accordingly, I dissent. favorable and consistent with approval of the application to acquire Lincoln's nonbanking subsidiaries. May 15, 1984 Based on the foregoing and other facts of record, the Board has determined that the applications under sections 3 and 4 of the Act should be and hereby are approved. The acquisition of Lincoln shall not be Midwest Bancorporation, Inc. consummated before the thirtieth calendar day follow- Hays, Kansas ing the effective date of this Order or later than three months after the effective date of this Order, unless Order Approving Acquisition of a Bank Holding such period is extended for good cause by the Board or Company and Engaging in General Insurance by the Federal Reserve Bank of New York pursuant to Agency Activities delegated authority. The determinations as to Applicant's nonbanking activities are subject to the condi- Midwest Bancorporation, Inc., Hays, Kansas, a bank tions set forth in sections 225.4(d) and 225.23(b)(3) of holding company within the meaning of the Bank Regulation Y (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)) Holding Company Act ("Act"), has applied for the and to the Board's authority to require such modifica- Board's approval under section 3(a)(3) of the Act tion or termination of the activities of a holding (12 U.S.C. § 1842(a)(3)) to acquire 20.2 percent of the company or any of its subsidiaries as the Board finds voting shares of Bushton Investment Company, Inc., necessary to assure compliance with the provisions Hays, Kansas ("Company"), a bank holding company and purposes of the Act and the Board's regulations by virtue of its ownership of Bushton State Bank, and orders issued thereunder, or to prevent evasion Bushton, Kansas ("Bushton Bank"). Applicant has thereof. also applied, under section 4(c)(8) of the Act By order of the Board of Governors, effective (12 U.S.C. § 1843(c)(8)), to engage indirectly through May 14, 1984. Company in the activities of a general insurance agency in a town with a population not exceeding Voting for this action: Chairman Volcker and Governors Martin, Partee, Rice, and Gramley. Voting against this action 5,000. and abstaining from the insurance portion of the application: Notice of the applications, affording opportunity for Governor Teeters. Absent and not voting: Governor Wallich. interested persons to submit comments, has been given in accordance with sections 3 and 4 of the Act JAMES MCAFEE (49 Federal Register 7291 (1984)). The time for filing comments has expired, and the Board has considered [SEAL] Associate Secretary of the Board the applications and all comments received in light of the factors set forth in section 3(c) of the Act and the Dissenting Statement of Governor Teeters considerations specified in section 4(c)(8) of the Act. I would deny this application on the grounds that Applicant, the 47th largest commercial banking orconsummation of this proposal will result in a substan- ganization in Kansas, controls one subsidiary bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 Federal Reserve Bulletin • June 1984 with $68.7 million in total deposits, representing ap- provided the principal place of banking business of the proximately 0.4 percent of the total deposits in com- bank holding company is also located in a community mercial banks in Kansas.1 Company is one of the with a population not exceeding 5,000. Title VI of the smaller commercial banking organizations in Kansas, Garn-St Germain Depository Institutions Act of 1982, with one subsidiary bank controlling $8.5 million in which generally prohibits bank holding companies deposits, representing less than 0.1 percent of the total from engaging in insurance activities, provides an deposits in commercial banks in Kansas. Upon acqui- exception to the prohibition for ". . .any insurance sition of Company, Applicant would become the 33rd agency activity in a place that . . . has a population largest commercial banking organization in Kansas not exceeding 5,000. . .". This statutory exception, and its share of the total deposits in commercial banks codified in section 4(c)(8)(C)(i) of the Act, contains no in Kansas would increase to approximately 0.5 per- requirement that the bank holding company's principal cent. Consummation of the proposal would have no place of banking business also be located in a commusignificant effect upon the concentration of banking nity with a population not exceeding 5,000. resources in Kansas. The Board has recently published a notice of pro- The banking subsidiaries of Applicant and Company posed rulemaking regarding section 4(c)(8)(C)(i) and do not compete in the same banking markets. Appli- has specifically requested public comment on the cant is the largest of five commercial banking organiza- question whether bank holding companies should be tions in the Ellis County banking market and controls permitted to engage in general insurance agency activi- 35.1 percent of the total deposits in commercial banks ties in communities that have populations not exceedin the market.2 Company is the fourth largest of 10 ing 5,000 only if the bank holding company's principal commercial banking organizations in the Rice County place of banking business is also located in a communibanking market, controlling 8.8 percent of the total ty with a population not exceeding 5,000 (49 Federal deposits in commercial banks in the market.3 Consum- Register 9215 (March 12, 1984)). The Board notes that mation of this proposal would have no effect on Applicant currently has no nonbanking subsidiaries existing or probable future competition in any relevant and has not sought the Board's approval to expand market. Company's insurance activities in any manner or to The financial and managerial resources of Appli- engage in general insurance agency activities at any of cant, Company and their subsidiaries are considered its own offices. In view of these facts and the fact that generally satisfactory and their prospects appear fa- Applicant has committed to conform its insurance vorable. Although no new banking services would be activities to the results of the rulemaking, including a introduced at Company's subsidiary bank, there is no complete divestiture of any of Company's insurance evidence that the banking needs of the community to activities which are impermissible under the Board's be served are not being met. final regulation, the Board believes it is appropriate to Applicant has also applied, pursuant to section permit Applicant to engage in Company's existing 4(c)(8) of the Act, to engage indirectly through Compa- insurance activities pending the outcome of the ruleny in the activities of a general insurance agency in making. Bushton, Kansas, a town with a population not ex- There is no evidence in the record to indicate that ceeding 5,000. In 1980, Company received the Board's approval of this application would result in undue approval to engage in such general insurance activities concentration of resources, decreased or unfair compursuant to section 4(c)(8) of the Act and the Board's petition, conflicts of interests, unsound banking prac- Regulation Y. tices, or other adverse effects on the public interest. Applicant's principal place of banking business is in Accordingly, in view of Applicant's commitment dis- Hays, Kansas, a town with a population of approxi- cussed above, the Board has determined that the mately 16,300. Section 225.25(b)(8)(ii) of the Board's balance of public interest factors it must consider Regulation Y (12 C.F.R. § 225.25(b)(8)(H)) permits under section 4(c)(8) of the Act is favorable and bank holding companies to sell any insurance in a consistent with approval of the application. community that has a population not exceeding 5,000, Based on the foregoing and other facts of record, the Board has determined that the applications under sections 3(a)(3) and 4(c)(8) of the Act should be, and hereby are, approved. The determination as to Applicant's nonbanking activities is subject to all the conditions set forth in the Board's Regulation Y, including 1. All banking data are as of June 30, 1983. 2. The Ellis County banking market is approximated by Ellis those in sections 225.4(d) and 225.23(b), and to the County, Kansas. Board's authority to require such modification or 3. The Rice County banking market is approximated by Rice termination of the activities of a bank holding compa- County, Kansas. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 535 ny or any of its subsidiaries as the Board finds ("Company"). Company has applied for permission to necessary to assure compliance with the provisions engage, directly and through its subsidiary, Citizens and purposes of the Act and the Board's regulations Mortgage Corporation, in the activity of providing and orders issued thereunder, or to prevent evasion mortgage banking services to Banks and other perthereof. sons. The services will be provided through Banks' The transaction shall not be consummated before offices and a central office in Oklahoma City. the thirtieth calendar day following the effective date Section 4(f) of the BSCA2 provides that a bank of this Order, or later than three months after the service corporation may perform at any geographic effective date of this Order, unless such period is location any service, other than deposit taking, that extended for good cause by the Board, or by the the Board has determined, by regulation, to be permis- Federal Reserve Bank of Kansas City, acting pursuant sible for a bank holding company under section 4(c)(8) to delegated authority. of the Bank Holding Company Act.3 Applicants pro- By order of the Board of Governors, effective pose to engage through Company in mortgage banking May 2, 1984. activities to the extent those activities are generally permissible for bank holding companies under the Voting for this action: Chairman Volcker and Governors Board's Regulation Y, 12 C.F.R. § 225.25(b)(l)(iii). Wallich, Partee, Teeters, and Gramley. Governors Wallich Section 5(b) of the BSCA4 requires prior Board and Teeters abstained from the insurance portion of these approval of any investment by an insured bank (as applications. Absent and not voting: Governors Martin and defined)5 in the capital stock of a bank service corpo- Rice. ration that performs any service under authority of section 4(f) of the BSCA. Section 5(b) also requires a JAMES MCAFEE company that becomes a bank service corporation [SEAL] Associate Secretary of the Board under the BSCA, by virtue of having all of its capital stock owned by one or more insured banks,6 to receive the Board's approval before providing a service autho- Orders Issued Under Section 5 of Bank Service rized under section 4(f). Corporation Act Section 5(c) of the BSCA7 authorizes the Board, in acting upon applications to invest in bank service corporations, to consider the financial and managerial American Bank of Commerce resources of the institutions involved, their prospects, McAlester, Oklahoma, Et Al. and possible adverse effects, such as undue concentration of resources, unfair or decreased competition, United Community Mortgage Company conflicts of interests, or unsafe or unsound banking Oklahoma City, Oklahoma practices. The Board finds that considerations relating to these factors are consistent with approval and that Order Approving Acquisition of Bank Service there is no evidence of adverse effects. Corporations Accordingly, on the basis of the record, the applications are approved for the reasons summarized above. Twenty-three banks in Oklahoma ("Banks")1 have applied for the Board's approval under section 5(b) the Bank Service Corporation Act, as amended ("BSCA") (12 U.S.C. § 1861 et seq.), to acquire all the shares of a bank service corporation, United Commu- (1.87%); The First National Bank of Seminole, Seminole (3.12%); The nity Mortgage Company, Oklahoma City, Oklahoma First National Bank and Trust Company of Stillwater, Stillwater (1.87%); First-Oklahoma Bank & Trust Company, Sulphur (3.12%); Liberty State Bank, Tahlequah (9.34%); Oklahoma State Bank, Buffalo, (1.87%); Oklahoma State Bank, Konawa (1.87%); Tecumseh Bank, Tecumseh (1.87%); and Texoma Bank, Kingston (1.87%). 2. 12 U.S.C. § 1864(f). 1. Banks and their proposed share ownership are: American Bank 3. Under section 4(c)(8) of the Bank Holding Company Act of Commerce, McAlester (9.34%); American National Bank, Durant (12 U.S.C. § 1841 et seq.), a bank holding company may engage in (1.87%); Bank of Glenpool, Glenpool (3.12%); Bank of Johnston activities determined by the Board to be closely related to banking and County, Tishomingo (1.87%); The Citizens Bank, Drumright (6.23%); a proper incident thereto. The Citizens State Bank, Hugo (1.87%); City Bank, Muskogee 4. 12 U.S.C. § 1865(b). (9.34%); Farmers State Bank, Allen (1.87%); The Federal National 5. Under section 1(b)(5) of the BSCA (12 U.S.C. § 1861(b)(5)), the Bank & Trust Company of Shawnee, Shawnee (9.34%); First Ameri- term "insured bank" has the meaning provided in section 3(h) of the can Bank, Stratford (1.87%); First Bank and Trust Company, Sand Federal Deposit Insurance Act (12 U.S.C. § 1813(h)) and encompasses Springs (7.79%); The First National Bank of Davis, Davis (3.12%); banks insured by the Federal Deposit Insurance Corporation. First National Bank of Guthrie, Guthrie (9.34%); The First National 6. Section 1(b)(2), 12 U.S.C. § 1861(b)(2). Bank in Madill, Madill (6.23%); First National Bank, Sallisaw 7. 12 U.S.C. § 1865(c). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 Federal Reserve Bulletin • June 1984 This determination is subject to the Board's authority By order of the Board of Governors, effective to require such modification or termination of the May 17, 1984. activities of a bank service corporation as the Board finds necessary to assure compliance with the Bank Voting for this action: Vice Chairman Martin and Gover- Service Corporation Act or to prevent evasions there- nors Partee, Rice, and Gramley. Absent and not voting: of. The transactions shall be consummated within Chairman Volcker and Governors Wallich and Teeters. three months after the date of this Order, unless the time is extended for good cause by the Board or the JAMES MCAFEE Federal Reserve Bank of Kansas City. [SEAL] Associate Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During May 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) Alliance Holdings, Inc. Alliance Bank, N.A. May 30, 1984 Austin, Texas Austin, Texas Ashland Bancshares, Inc. Ashland State Bank May 29, 1984 Omaha, Nebraska Ashland, Nebraska Crossroads Bancorp, Inc. The Peoples Bank May 31, 1984 Mount Washington, Kentucky Mount Washington, Kentucky First Freeport Corporation First City Bancshares, Inc. May 1, 1984 Freeport, Illinois Dixon, Illinois Independent Bankshares, Inc. Wellington State Bank May 15, 1984 Abilene, Texas Wellington, Texas 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 Alliance Bancorp The Danville State Bank Chicago April 25, 1984 Danville, Indiana Danville, Indiana Affiliated Bank Corporation of The Wyoming National Bank of Kansas City May 8, 1984 Wyoming West Casper Casper, Wyoming Casper, Wyoming Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 537 Section 3—Continued „ , , . Reserve Effective AApplicant Bank(s) ^ date Albion Bancorp, Inc. The Pen Argyl National Bank Philadelphia May 11, 1984 Pen Argyl, Pennsylvania Pen Argyl, Pennsylvania American State Financial American State Bank of Snyder Dallas May 4, 1984 Corporation Snyder, Texas Lubbock, Texas The Bancstock Partnership, Inwood Bancshares, Inc. Dallas May 18, 1984 Ltd. Dallas, Texas Dallas, Texas Inwood National Bank of Dallas Dallas, Texas Bank of South Corporation Cumming Bancshares, Inc. Atlanta May 2, 1984 Atlanta, Georgia Cumming, Georgia Bank of the Rockies Banc- National Bank of the Rockies Kansas City May 16, 1984 shares, Inc. Boulder, Colorado Boulder, Colorado Bankshares of Georgia, Inc. The Bank of Macon County Atlanta April 16, 1984 Montezuma, Georgia Montezuma, Georgia Bar Harbor Bankshares Bar Harbor Banking and Trust Boston May 21, 1984 Bar Harbor, Maine Company Bar Harbor, Maine Beardsley Bancshares, Inc. Buffalo Ridge State Bank of Minneapolis May 11, 1984 Beardsley, Minnesota Ruthton, Inc. Ruthton, Minnesota BKLA Bancorp Bank of Los Angeles San Francisco April 23, 1984 Los Angeles, California Los Angeles, California Blanchardville Financial Highland State Bank Chicago May 4, 1984 Services, Inc. Highland, Wisconsin Blanchardville, Wisconsin Boulder Bancorporation Bank of Boulder Kansas City May 9, 1984 Boulder, Colorado Boulder, Colorado Branch Corporation Carolina BanCorp, Inc. Richmond April 25, 1984 Wilson, North Carolina Sanford, North Carolina Britton Bancshares, Inc. Citizens State Bank & Trust Kansas City May 17, 1984 Ellsworth, Kansas Company Ellsworth, Kansas C.S.B. Holding Corporation Citizens State Bank Chicago April 26, 1984 Wyoming, Iowa Wyoming, Iowa Carlinville National Bank The Carlinville National Bank St. Louis May 22, 1984 Shares, Inc. Carlinville, Illinois Carlinville, Illinois Carrizo Bancshares Corporation Union State Bank Dallas May 8, 1984 Carrizo Spring, Texas Carrizo Spring, Texas Catahoula Holding Company Catahoula Bank Dallas April 26, 1984 New Orleans, Louisiana Jonesville, Louisiana Central Banc System, Inc. The Farmers & Merchants St. Louis May 22, 1984 Granite City, Illinois National Bank of Carlinville Carlinville, Illinois Chemical Financial Corporation Northern National Bank Chicago May 15, 1984 Midland, Michigan Grayling, Michigan Chesapeake Bank Corporation Chesapeake Bank & Trust Richmond May 9, 1984 Chesapeake, Virginia Chesapeake, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 Federal Reserve Bulletin • June 1984 Section 3—Continued ,. r> i, s Reserve Effective AApplicant Bank(s) _ , Bank date Citicorp Holdings, Inc. Citibank (Delaware) New York April 30, 1984 Wilmington, Delaware New Castle, Delaware Citibank (South Dakota), N.A. Sioux Falls, South Dakota Citibank (Maryland), N.A. Towson, Maryland Citizens Bancorp of Morehead, The Citizens Bank Cleveland May 2, 1984 Inc. Morehead, Kentucky Morehead, Kentucky Citizens Ban-Corporation Ridge way Bancshares, Inc. Kansas City May 11, 1984 Rock Port, Missouri Bethany, Missouri Farmers National Bank Bethany, Missouri Security Bancshares, Inc. Gallatin, Missouri New Hampton Bancshares, Inc. New Hampton, Missouri Citizens Bancorporation Bancorporation of Wisconsin, Chicago May 17, 1984 Sheboygan, Wisconsin Inc. West Allis, Wisconsin West Allis State Bank West Allis, Wisconsin Southwest Bank New Berlin, Wisconsin Citizens Bancorporation S.B.W. Bancorp, Inc. Chicago May 17, 1984 Sheboygan, Wisconsin Waupun, Wisconsin The State Bank of Waupun Waupun, Wisconsin Citizens BancShares, Inc. The Citizens Bank Atlanta April 16, 1984 Greensboro, Alabama Greensboro, Alabama Citizens Banking Corporation Grayling State Bank Chicago May 1, 1984 Flint, Michigan Grayling, Michigan Citizens-Texas Banc Shares, Citizens National Bank Dallas April 25, 1984 Inc. Teague, Texas Buffalo, Texas City National Bancorp, Inc. The City National Bank of Fulton St. Louis April 25, 1984 Fulton, Kentucky Fulton, Kentucky CNB Financial Corporation, The City National Bank of Taylor Dallas May 2, 1984 Inc. Taylor, Texas Taylor, Texas Coal City Capital Corp The First National Bank of Coal Chicago May 7, 1984 Coal City, Illinois City Coal City, Illinois Cole-Taylor Financial Group, Ford City Bank and Trust Co. Chicago April 18, 1984 Inc. Chicago, Illinois Northbrook, Illinois Commercial National Bancorp Commercial National Bank San Francisco May 11, 1984 Beverly Hills, California Los Angeles, California Community Bancorp, Inc. The Hudson National Bank Boston May 7, 1984 Hudson, Massachusetts Hudson, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 539 Section 3—Continued .. __ . , Reserve Effective Apphcant Bank(s )N B&nk date Community Bancorp of McLean First Security Bank of McLean St. Louis April 24, 1984 County, Kentucky, Inc. County Island, Kentucky Island, Kentucky The Conifer/Essex Group, Inc. Charterbank Incorporated Boston April 17, 1984 Worcester, Massachusetts Brockton, Massachusetts Dallas Bancshares, Inc North Texas Bank Dallas April 12, 1984 Dallas, Texas Lewisville, Texas First Bank of Rowlett Rowlett, Texas Darwin Bancshares, Inc. Farmers and Merchants State Minneapolis April 26, 1984 Darwin, Minnesota Bank Paynesville, Minnesota Dike Bancshares Corporation Iowa Savings Bank Chicago April 19, 1984 Dike, Iowa Dike, Iowa Dorchester Bancshares, Inc. Dorchester State Bank Chicago May 14, 1984 Dorchester, Wisconsin Dorchester, Wisconsin Eastern Michigan Financial State Bank of Croswell Chicago May 17, 1984 Corporation Croswell, Michigan Croswell, Michigan Evergreen of Wisconsin, Inc. Farmers State Bank Chicago May 17, 1984 Poy Sippi, Wisconsin Poy Sippi, Wisconsin F&M Financial Corporation Farmers & Merchants Bank Richmond May 23, 1984 Granite Quarry, North Granite Quarry, North Carolina Carolina Fairbanco Holding Company Fairburn Banking Company Atlanta April 23, 1984 Fairburn, Georgia Fairburn, Georgia Farmers & Merchants Banc- Farmers & Merchants Bank Atlanta April 27, 1984 shares, Inc. LaFayette, Alabama LaFayette, Alabama Farmers Union Bancshares, Inc. Farmers Union Bank St. Louis April 27, 1984 Ripley, Tennessee Ripley, Tennessee Fauquier National Bankshares, The Fauquier National Bank of Richmond May 15, 1984 Inc. Warrenton Warrenton, Virginia Warrenton, Virginia FB II—Farmersville, Inc. Farmersville Bancshares, Inc. Dallas April 17, 1984 Farmersville, Texas Farmersville, Texas First Acadiana Corporation Acadiana Bank Atlanta April 23, 1984 Eunice, Louisiana Eunice, Louisiana First American Bancshares, Inc. American Bank of Pelham Atlanta April 16, 1984 Pelham, Alabama Pelham, Alabama First Banc, Inc. University Bank of Carbondale St. Louis May 25, 1984 Manchester, Missouri Carbondale, Illinios First Busey Corporation City Bank of Champaign Chicago May 18, 1984 Urbana, Illinois Champaign, Illinois First Colorado Bankshares, Inc. National Bank of Arapahoe Kansas City May 21, 1984 Englewood, Colorado Englewood, Colorado First Community Bancshares, Oceana National Bank Richmond May 2, 1984 Inc. Oceana, West Virginia Princeton, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 Federal Reserve Bulletin • June 1984 Section 3—Continued . „ ,, . Reserve Effective Apphcant Bank(s) ^ Bank First Dwight Corporation The First National Bank of Chicago May 17, 1984 Dwight, Illinois Dwight Dwight, Illinois First Etowah Bancorp, Inc. First Citizens Bank of Etowah Atlanta May 23, 1984 Glencoe, Alabama Glencoe, Albama First Financial Bancorp, Inc. The First National Bank and Cleveland May 14, 1984 Wheeling, West Virginia Trust Company of Wheeling Wheeling, West Virginia First Flo Corporation First National Bank of Florence Kansas City May 25, 1984 Florence, Colorado Florence, Colorado First Glen Bancorp, Inc. The Keeseville National Bank New York April 16, 1984 Glens Falls, New York Keeseville, New York First Indiana Bancorp First Charter Financial Chicago May 3, 1984 Elkhart, Indiana Corporation Syracuse, Indiana The State Bank of Syracuse Syracuse,Indiana First LeRoy BanCorporation, First State Bank of LeRoy Minneapolis April 27, 1984 Inc. LeRoy, Minnesota LeRoy, Minnesota First Michigan Bank The Oceana County Savings Chicago May 18, 1984 Corporation Bank Zeeland, Michigan Hart, Michigan First Newport Bancshares, Inc. Planters and Stockmen Bank St. Louis May 14, 1984 Newport, Arkansas Pocahontas, Arkansas First of Charlevoix Corp. First State Bank of Charlevoix Chicago April 23, 1984 Charlevoix, Michigan Charlevoix, Michigan First Overland Park Bancshares, First National Bank of Overland Kansas City May 15, 1984 Inc. Park Overland Park, Kansas Overland Park, Kansas First State Bancorp Howell State Bank New York April 24, 1984 Howell, New Jersey Howell, New Jersey First Sterling Bancshares, Inc. First Sterling Bank Atlanta May 9, 1984 Winter Haven, Florida Winter Haven, Florida Five Flags Banks, Inc. Bank of the South Atlanta May 25, 1984 Pensacola, Florida Myrtle Grove, Florida First Navy Bank Pensacola, Florida The Warrington Bank Warrington, Florida Florence Bancorp Services, Inc. Florence Deposit Bank Cleveland May 11, 1984 Florence, Kentucky Florence, Kentucky FNB Rochester Corp. First National Bank of Rochester New York May 30, 1984 Rochester, New York Rochester, New York Fort Rucker Bancshares, Inc. Fort Rucker National Bank Atlanta April 27, 1984 Chillicothe, Missouri Fort Rucker, Alabama The Forum Park Bancorp First Bank of Inglewood San Francisco May 4, 1984 Inglewood, California Inglewood, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 541 Section 3—Continued _ , , Reserve Effective Applicant Bank(s )N Bank d&te Franklin Bancorp, Inc. Franklin State Bank & Trust Dallas April 19, 1984 Winnsboro, Louisiana Company Winnsboro, Louisiana Gibbon Exchange Company L.T. Osborn Realty Co. Kansas City May 25, 1984 Gibbon, Nebraska Gibbon, Nebraska Gore Valley Bancorporation, First National Bank of Vail Kansas City April 12, 1984 Inc. Vail, Colorado Vail, Colorado Grand Bank Corporation The National Grand Bank of Boston May 21, 1984 Marblehead, Massachusetts Marblehead Marblehead, Massachusetts Grant Bancshares, Inc. Citizens Bank Cleveland May 14, 1984 Dry Ridge, Kentucky Dry Ridge, Kentucky Griffin Holdings, Inc. First Women's Bank of California San Francisco May 25, 1984 Los Angeles, California Los Angeles, California Guy an Bankshares, Inc. Gilbert Bank and Trust Company Richmond April 26, 1984 Gilbert, West Virginia Gilbert, West Virginia Haltom City Bancshares, Inc. Haltom City State Bank Dallas April 18, 1984 Dallas, Texas Forth Worth, Texas Hamptons Bancshares, Inc. The Bank of the Hamptons, N.A. New York April 18, 1984 East Hampton, New York East Hampton, New York Handi-Bancshares, Inc., Salina The First National Bank and Kansas City April 24, 1984 Salina, Kansas Trust Company of Salina First Handi-Bankshares, Inc. Salina, Texas Salina Kansas Helena Bancshares, Inc. Helena National Bank St. Louis May 8, 1984 Helena, Arkansas Helena, Arkansas Jefferson Bancshares, Inc. Leon Valley Bank Dallas May 7, 1984 San Antonio, Texas San Antonio, Texas Jersey Village Bancshares, Inc. Great Western Bank, N.A. Dallas May 10, 1984 Houston, Texas Houston, Texas Jessamine Bancshares, Inc. The First National Bank & Trust Cleveland May 4, 1984 Nicholasville, Kentucky Company Nicholasville, Kentucky Kimberly Leasing Corporation Security State Bank of Pillager Minneapolis April 18, 1984 Rush City, Minnesota Pillager, Minnesota L.S.B. Bancshares, Inc. The Lexington State Bank Richmond April 13, 1984 Lexington, South Carolina Lexington, South Carolina LaFollotte First National First National Bank of LaFollotte Atlanta May 17, 1984 Corporation LaFollotte, Tennessee LaFollotte, Tennessee Laverne Bancshares, Inc. The First National Bank of Kansas City May 11, 1984 Laverne, Oklahoma Laverne Laverne, Oklahoma Marshall & Ilsley Corporation Wauwatosa Bancorp, Inc. Chicago May 18, 1984 Milwaukee, Wisconsin Wauwatosa, Wisconsin Wauwatosa State Bank Wauwatosa, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 Federal Reserve Bulletin • June 1984 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Matewan Bancshares, Inc. The Matewan National Bank Richmond April 25, 1984 Matewan, West Virginia Matewan, West Virginia Metro-West Financial First State Bank of Eden Prairie Minneapolis April 17, 1984 Corporation Eden Prairie, Minnesota Eden Prairie, Minnesota Morganfield National Service Morganfield National Bank St. Louis May 23, 1984 Corp. Morganfield, Kentucky Morganfield, Kentucky Muskingum Valley Bancshares, The Citizens Bank Company Cleveland April 20, 1984 Inc. Beverly, Ohio Beverly, Ohio NBC Bancshares of DeRidder, National Bank of Commerce of Atlanta April 27, 1984 Inc. DeRidder DeRidder, Louisiana DeRidder, Louisiana New Dumas Bancshares, Inc. Moore Bancshares Corporation Dallas May 23, 1984 Dumas, Texas Dumas, Texas First State Bank of Dumas Dumas, Texas Nor-Evan Corporation The Elgin National Bank Chicago May 25, 1984 Evanston, Illinois Elgin, Illinois North American Bank Farmington National & Savings Boston May 14, 1984 Corporation Bank Farmington, New Hampshire Farmington, New Hampshire Oak Ridge Bancshares, Inc. Bank of Oak Ridge Dallas May 3, 1984 Oak Ridge, Louisiana Oak Ridge, Louisiana Peoples Corporation, Inc. of The Peoples Bank Richmond April 25, 1984 Bishopville Bishopville, South Carolina Bishopville, South Carolina Peshtigo National Ban- The Peshtigo National Bank Chicago April 30, 1984 corporation, Inc. Peshtigo, Wisconsin Peshtigo, Wisconsin Ranch Bankshares, Inc. Ranch National Bank San Francisco April 13, 1984 Scottsdale, Arizona Scottsdale, Arizona Rockford City Bancorp, Inc. Boone Bancorp, Inc. Chicago May 18, 1984 Rockford, Illinois Belvidere, Illinois Sabinal Bancshares, Inc. Sabinal Bank Dallas May 4, 1984 Sabinal, Texas Sabinal, Texas Schuyler County Bancshares, Schuyler County State Bank St. Louis May 8, 1984 Inc. Lancaster, Missouri Lancaster, Missouri Security National Bancorp, Inc. Security National Bank of Dallas May 8, 1984 Shreveport, Louisiana Shreveport Shreveport, Louisiana Security Pacific Corporation Security Pacific State Bank San Francisco May 22, 1984 Los Angeles, California Irvine, California Seiko Banco, Inc. Bank of Mead Kansas City April 18, 1984 Mead, Nebraska Mead, Nebraska Simmons First National First State Bank & Trust St. Louis May 15, 1984 Corporation Company Pine Bluff, Arkansas Lake Village, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 543 Section 3—Continued _ , , , Reserve Effective Applicant Bank(s) BanR date Sobank, Inc. South Broadway Bank Dallas May 3, 1984 Tyler, Texas Tyler, Texas Summit Holding Corporation Raleigh County National Bank Richmond April 24, 1984 Beckley, West Virginia Beckley, West Virginia Texas Bancorp Shares, Inc. Texas Bank North, N.A. Dallas April 23, 1984 San Antonio, Texas San Antonio, Texas Trans Bancorp Holdings N.V. Trans Bankcorp,Inc. San Francisco May 4, 1984 Curacao, Netherlands Antilles Monterey Park, California U-Banc, Incorporated United Bank of Absarokee, N.A. Minneapolis May 17, 1984 Red Lodge, Montana Absarokee, Montana Underwood Holding Company, First Security Bank Minneapolis April 25, 1984 Inc. Underwood, North Dakota Underwood, North Dakota Union Bankshares Company Union Trust Company of Boston May 21, 1984 Ellsworth, Maine Ellsworth Ellsworth, Maine United Bancorporation Alaska, United Bank Alaska San Francisco May 17, 1984 Inc. Southwestern Anchorage, Alaska Juneau, Alaska United Oklahoma Bankshares, United Oklahoma Bank of Del Kansas City May 21, 1984 Inc. City Oklahoma City, Oklahoma Del City, Oklahoma United Security Bancshares, First National Bank of Butler Atlanta April 16, 1984 Inc. Butler, Alabama Thomasville, Alabama Universal Bancorp, Inc. Universal National Bank Atlanta May 21, 1984 Miami, Florida Miami, Florida Valley Banc Services Corp. Hinckley State Bank Chicago May 25, 1984 Antioch, Illinois Hinckley, Illinois Valley National Corporation Valley National Bank of Oregon San Francisco April 17, 1984 Forest Grove, Oregon Forest Grove, Oregon Vista Banks, Inc. Bank of Belleview Atlanta May 8, 1984 DeLeon Springs, Florida Belleview, Florida Wabasha Holding Company First State Bank of Wabasha Minneapolis May 10, 1984 Wabasha, Minnesota Wabasha, Minnesota Waskom Bancshares, Inc. First State Bank Dallas April 24, 1984 Waskom, Texas Waskom, Texas Waynoka Bancshares, Inc. First State Bank Kansas City May 11, 1984 Waynoka, Oklahoma Waynoka, Oklahoma Weatherford National Banc- Weatherford National Bank Dallas May 7, 1984 shares, Inc. Weatherford, Texas Weatherford, Texas Westbank Corporation Park West Bank and Trust Boston May 4, 1984 West Springfield, Company Massachusetts West Springfield, Massachusetts Whitehouse Financial First National Bank of White- Dallas April 18, 1984 Corporation house Whitehouse, Texas Whitehouse, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 Federal Reserve Bulletin • June 1984 Section 4 Nonbanking Reserve Effective Applicant company Bank date CBT Corporation Fidelity Credit Corporation St. Louis April 24, 1984 Paducah, Kentucky Paducah, Kentucky Chemical New York Brown & Company Securities New York April 20, 1984 Corporation Corporation New York, New York Boston, Massachusetts FNB Insurance Agency, Inc. Parkview Limited Partnership Kansas City May 3, 1984 Walthill, Nebraska Walthill, Nebraska Meridan Bancorp, Inc. American Business Credit Philadelphia May 9, 1984 Reading, Pennsylvania Corporation Blue Bell, Pennsylvania Security Pacific Corporation Baldwin-United Corporation San Francisco May 18, 1984 Los Angeles, California New York, New York D.H. Baldwin Company Cincinnati, Ohio Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date Mansfield Bankstock, Inc. Bank of Mansfield St. Louis May 10, 1984 Mansfield, Arkansas Mansfield, Arkansas real estate appraisal The Newburg Corporation Cedar National Bank Chicago April 19, 1984 St. Ansgar, Iowa Carpenter, Iowa insurance activities State Holding Company First State Bank St. Louis May 8, 1984 Sherwood, Arkansas Sherwood, Arkansas real estate appraisal ORDERS APPROVED UNDER BANK MERGER ACT By Board of Governors Effective Applicant Bank(s) , 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 545 By Federal Reserve Banks „ . , . Reserve Effective Applicant Bank(s) BanR date Lorain Interim Bank The Lorain County Savings & Cleveland April 30, 1984 Elyria, Ohio Trust Co. Elyria, Ohio 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. Melcher v. Federal Open Market Committee, No. 84- Oklahoma Bankers Association v. Federal Reserve 1335 (D.D.C., filed Apr. 30, 1984). Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983). Florida Bankers Association v. Board of Governors, Independent Insurance Agents of America, Inc. v. No. 84-3269 and No. 84-3270 (11th Cir., filed Board of Governors, No. 83-1818 (8th Cir., filed Apr. 20, 1984). June 21, 1983); and No. 83-1819 (8th Cir., filed Northeast Bancorp, Inc. v. Board of Governors, No. June 21, 1983). 84-4047, No. 84-4051, No. 84-4053 (2d Cir., filed The Committee for Monetary Reform v. Board of Mar. 27, 1984). Governors, No. 84-5067 (D.C. Cir., filed June 16, Huston v. Board of Governors, No. 84-1361 (8th Cir., 1983). filed Mar. 20, 1984); and No. 84-1084 (8th Cir. filed Securities Industry Association v. Board of Gover- Jan. 17, 1984). nors, No. 83-614 (U.S., filed Feb. 3, 1983). De Young v. Owens, No. SC 9782-20-6 (Iowa Dist. Association of Data Processing Service Organizations Ct., filed Mar. 8, 1984). v. Board of Governors, No. 82-1910 (D.C. Cir., filed First Tennessee National Corp. v. Board of Gover- Aug. 16, 1982); and No. 82-2108 (D.C. Cir., filed nors, No. 84-3201 (6th Cir., filed Mar. 6, 1984). Aug. 16, 1982). Independent Insurance Agents of America v. Board of Wyoming Bancorporation v. Board of Governors, Governors, No. 84-1083 (D.C. Cir., filed Mar. 5, No. 83-1634 (10th Cir., filed May 20, 1982). 1984). First Bancorporation v. Board of Governors, No. 82- State of Ohio v. Board of Governors, No. 84-1270 1401 (10th Cir., filed Apr. 9, 1982). (10th Cir., filed Jan. 30, 1984). Wolf son v. Board of Governors, No. 83-3570 (11th Ohio Deposit Guarantee Fund v. Board of Governors, Cir., filed Sept. 28, 1981). No. 84-1257 (10th Cir., filed Jan. 28, 1984). First Bank & Trust Company v. Board of Governors, Colorado Industrial Bankers Association v. Board of No. 81-38 (E.D. Ky., filed Feb. 24, 1981). Governors, No. 84-1122 (10th Cir., filed Jan. 27, 9 to 5 Organization for Women Office Workers v. 1984). Board of Governors, No. 83-1171 (1st Cir., filed Financial Institutions Assurance Corp. v. Board of Dec. 30, 1980). Governors, No. 84-1101 (4th Cir., filed Jan. 27, Securities Industry Association v. Board of Gover- 1984). nors, No. 82-1766 (U.S., Filed Oct. 24, 1980). First Bancorporation v. Board of Governors, No. 84- A. G. Becker, Inc. v. Board of Governors, No. 82-1766 1011 (10th Cir., filed Jan. 5, 1984). (U.S., filed Oct. 14, 1980). Dimension Financial Corporation v. Board of Gover- A. G. Becker, Inc. v. Board of Governors, No. 81-1493 nors, No. 83-2696 (10th Cir., filed Dec. 30, 1983). (D.C. Cir., filed Aug. 25, 1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A18 All reporting banks A19 Banks in New York City A3 Reserves, money stock, liquid assets, and debt A20 Balance sheet memoranda measures A20 Branches and agencies of foreign banks A4 Reserve balances of depository institutions, A21 Gross demand deposits of individuals, Reserve Bank credit partnerships, and corporations A5 Reserves and borrowings of depository institutions A5 Federal funds and repurchase agreements of FINANCIAL MARKETS large member banks All Commercial paper and bankers dollar acceptances outstanding POLICY INSTRUMENTS A22 Prime rate charged by banks on short-term business loans A6 Federal Reserve Bank interest rates A23 Terms of lending at commercial banks A7 Reserve requirements of depository institutions A24 Interest rates in money and capital markets A8 Maximum interest rates payable on time and A25 Stock market—Selected statistics savings deposits at federally insured institutions A26 Selected financial institutions—Selected assets A9 Federal Reserve open market transactions and liabilities FEDERAL RESERVE BANKS FEDERAL FINANCE A10 Condition and Federal Reserve note statements All Federal fiscal and financing operations All Maturity distribution of loan and security A28 U.S. Budget receipts and outlays holdings A29 Federal debt subject to statutory limitation A29 Gross public debt of U.S. Treasury—Types and ownership MONETARY AND CREDIT AGGREGATES A30 U.S. government securities dealers— Transactions, positions, and financing A12 Aggregate reserves of depository institutions A31 Federal and federally sponsored credit and monetary base agencies—Debt outstanding A13 Money stock, liquid assets, and debt measures A14 Bank debits and deposit turnover 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 • June 1984 SECURITIES MARKETS AND A51 U.S. reserve assets CORPORATE FINANCE A51 Foreign official assets held at Federal Reserve Banks A32 New security issues—State and local A52 Foreign branches of U.S. banks—Balance sheet governments and corporations data A33 Open-end investment companies—Net sales and A54 Selected U.S. liabilities to foreign official asset position institutions A33 Corporate profits and their distribution A34 Nonfinancial corporations—Assets and liabilities REPORTED BY BANKS IN THE UNITED STATES A34 Total nonfarm business expenditures on new plant and equipment A54 Liabilities to and claims on foreigners A35 Domestic finance companies—Assets and A55 Liabilities to foreigners liabilities and business credit A57 Banks' own claims on foreigners A58 Banks' own and domestic customers' claims on foreigners REAL ESTATE A58 Banks' own claims on unaffiliated foreigners A59 Claims on foreign countries—Combined A36 Mortgage markets domestic offices and foreign branches A37 Mortgage debt outstanding REPORTED BY NONBANKING BUSINESS CONSUMER INSTALLMENT CREDIT ENTERPRISES IN THE UNITED STATES A38 Total outstanding and net change A60 Liabilities to unaffiliated foreigners A39 Terms A61 Claims on unaffiliated foreigners FLOW OF FUNDS SECURITIES HOLDINGS AND TRANSACTIONS A40 Funds raised in U.S. credit markets A62 Foreign transactions in securities A41 Direct and indirect sources of funds to credit A63 Marketable U.S. Treasury bonds and notes— markets Foreign holdings and transactions Domestic Nonfinancial Statistics INTEREST AND EXCHANGE RATES A42 Nonfinancial business activity—Selected A63 Discount rates of foreign central banks measures A64 Foreign short-term interest rates A42 Output, capacity, and capacity utilization A64 Foreign exchange rates A43 Labor force, employment, and unemployment A44 Industrial production—Indexes and gross value A46 Housing and construction A65 Guide to Tabular Presentation, A47 Consumer and producer prices Statistical Releases, and Special A48 Gross national product and income Tables A49 Personal income and saving SPECIAL TABLES International Statistics A66 Commercial bank assets and liabilities, A50 U.S. international transactions—Summary December 31, 1983 A51 U.S. foreign trade All Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1983 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 11998833 1984 1983 1984 Q2 Q3 Q4 Q1 Dec. Jan. Feb. Mar. Apr. Reserves of depository institutions2 1 Total 11.8 6.0 .5 6.9 1.2 7.6 19.0' 1.3' .1 2 Required 12.0 5.9 -.1 4.5 .1 5.9 8.0' 9.3' 7.5 3 Nonborrowed 5.2 2.9 8.0 8.2 5.8 9.8 24.5' -11.7' -9.6 4 Monetary base3 10.2 8.1' 7.8 9.0 6.7 12.8' 10.5 .8 5.8 Concepts of money, liquid assets, and debt4 > Ml 11.6 9.5 4.8 7.2 5.3 10.7 6.6 5.0' .4 6 M2 10.6 6.9 8.5 6.9' 7.7 5.7 8.3' 4.1' 7.1 7 M3 9.3 7.4 9.9 8.9 8.2' 6.6 9.9' 9.3' 11.1 8 L 10.3 9.6 8.9' 10.8 11.6' 8.0' ll.C 14.2' n.a. 9 Debt 10.7 11.5 10.1 12.6 13.8' 12.2 13.7' 10.7' n.a. Nontransaction components 10 In M25 10.2 6.1 9.6 6.8 8.4 4.1' 8.9 3.8' 9.2 11 In M3 only6 3.8 9.7' 16.1' 17.8' 10.2' 10.6' 16.5' 31.7' 27.5 Time and savings deposits Commercial banks 12 Savings7 -14.8 -6.3 -6.4 -16.2 13.2 -22.3 -18.2 11.1' -3.0 13 Small-denomination time8 -21.2 13.7 19.3 4.4 10.6 -.7 -.3 .2 7.8 14 Large-denomination time910 -14.6 -4.6 -.4 9.0 7.0 9.0' 5.8' 23.1 18.6 Thrift institutions 15 Savings7 -1.3 -2.2 -4.4 -5.1 -6.7 -3.4 -8.1' .7 1.4 16 Small-denomination time -17.0 12.3 18.8 11.8 12.4 11.2 10.8 4.8' 9.3 17 Large-denomination time9 51.2 63.5 57.6 44.8' 47.2 70.1' 63.2' 38.6' 40.5 Debt components4 18 Federal 23.2 21.2 12.4 15.3 8.1' 27.3' 16.7' -1.7 n.a. 19 Nonfederal 7.3 8.8 9.5 11.8 15.4' 7.8 12.8' 14.3 n.a. 20 Total loans and securities at commercial banks" 9.9' 9.7 10.2 14.C 14.1' 12.4' 16.C 13.2' 4.9 1. Unless otherwise noted, rates of change are calculated from average funds (general purpose and broker/dealer), foreign governments and commercial amounts outstanding in preceding month or quarter. banks, and the U.S. government. Also subtracted is a consolidation adjustment 2. Figures incorporate adjustments for discontinuities associated with the that represents the estimated amount of demand deposits and vault cash held by implementation of the Monetary Control Act and other regulatory changes to thrift institutions to service their time and savings deposits. reserve requirements. To adjust for discontinuities due to changes in reserve M3: M2 plus large-denomination time deposits and term RP liabilities (in requirements on reservable nondeposit liabilities, the sum of such required amounts of $100,000 or more) issued by commercial banks and thrift institutions, reserves is subtracted from the actual series. Similarly, in adjusting for discontin- term Eurodollars held by U.S. residents at foreign branches of U.S. banks uities in the monetary base, required clearing balances and adjustments to worldwide and at all banking offices in the United Kingdom and Canada, and compensate for float also are subtracted from the actual series. balances in both taxable and tax-exempt, institution-only money market mutual 3. The monetary base not adjusted for discontinuities consists of total funds. Excludes amounts held by depository institutions, the U.S. government, reserves plus required clearing balances and adjustments to compensate for float money market funds, and foreign banks and official institutions. Also subtracted is at Federal Reserve Banks plus the currency component of the money stock less a consolidation adjustment that represents the estimated amount of overnight RPs the amount of vault cash holdings of thrift institutions that is included in the and Eurodollars held by institution-only money market mutual funds. currency component of the money stock plus, for institutions not having required L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term reserve balances, the excess of current vault cash over the amount applied to Treasury securities, commercial paper and bankers acceptances, net of money satisfy current reserve requirements. After the introduction of contemporaneous market mutual fund holdings of these assets. reserve requirements (CRR), currency and vault cash figures are measured over Debt: Debt of domestic nonfinancial sectors consists of outstanding credit the weekly computation period ending Monday. market debt of the U.S. government, state and local governments, and private Before CRR, all components of the monetary base other than excess reserves nonfinancial sectors. Private debt consists of corporate bonds, mortgages, conare seasonally adjusted as a whole, rather than by component, and excess sumer credit (including bank loans), other bank loans, commercial paper, bankers reserves are added on a not seasonally adjusted basis. After CRR, the seasonally acceptances, and other debt instruments. The source of data on domestic adjusted series consists of seasonally adjusted total reserves, which include nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted data are on an end-of-month basis. Growth rates for debt reflect adjustments for currency component of the money stock plus the remaining items seasonally discontinuities over time in the levels of debt presented in other tables. adjusted as a whole. 5. Sum of overnight RPs and Eurodollars, money market fund balances 4. Composition of the money stock measures and debt is as follows: (general purpose and broker/dealer), MMDAs, and savings and small time Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults deposits less the estimated amount of demand deposits and vault cash held by of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits thrift institutions to service their time and savings deposit liabilities. at all commercial banks other than those due to domestic banks, the U.S. 6. Sum of large time deposits, term RPs, and Eurodollars of U.S. residents, government, and foreign banks and official institutions less cash items in the money market fund balances (institution-only), less a consolidation adjustment process of collection and Federal Reserve float; and (4) other checkable deposits that represents the estimated amount of overnight RPs and Eurodollars held by (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer institution-only money market mutual funds. service (ATS) accounts at depository institutions, credit union share draft 7. Excludes MMDAs. accounts, and demand deposits at thrift institutions. The currency and demand 8. Small-denomination time deposits—including retail RPs—are those issued deposit components exclude the estimated amount of vault cash and demand in amounts of less than $100,000. All IRA and Keogh accounts at commercial deposits respectively held by thrift institutions to service their OCD liabilities. banks and thrifts are subtracted from small time deposits. M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) 9. Large-denomination time deposits are those issued in amounts of $100,000 issued by all commercial banks and overnight Eurodollars issued to U.S. residents or more, excluding those booked at international banking facilities. by foreign branches of U.S. banks worldwide, MMDAs, savings and small- 10. Large-denomination time deposits at commercial banks less those held by denomination time deposits (time deposits—including retail RPs—in amounts of money market mutual funds, depository institutions, and foreign banks and less than $100,000), and balances in both taxable and tax-exempt general purpose official institutions. and broker/dealer money market mutual funds. Excludes individual retirement 11. Changes calculated from figures shown in table 1.23. Beginning December accounts (IRA) and Keogh balances at depository institutions and money market 1981, growth rates reflect shifts of foreign loans and securities from U.S. banking funds. Also excludes all balances held by U.S. commercial banks, money market offices to international banking facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 DomesticN onfinancial Statistics • June 1984 1.11 RESERVE BALANCES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT • Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1984 1984 Feb. Mar. Apr. Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. II Apr. 18 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit 166,904 168,738 174,313 169,028 169,316 168,956 169,794 171,507 171,564 2 U.S. government securities1 148. 149,546 154,226 149,174 149,897 149,620 150,442 151,112 152,425 4 3 B H o e u ld g h u t n o d u er t r r ig e h p t u rchase agreements 148, 149, 4 1 1 2 8 8 152 1, , 3 8 6 5 7 9 148,3 8 1 5 8 6 149,897 0 148,6 9 2 9 3 7 150,442 0 151,112 0 152,425 0 5 Federal agency obligations 8,604 8,660 8,610 8,558 8,698 8,558 8,557 8,556 6 7 8 Ac B H c o e e p u ld g t a h u n t n c o d e u e s r t ri r g e h p t u rchase agreements 8,56 4 1 2 2 4 8,5 1 5 8 0 7 7 3 8,56 4 4 6 1 8,558 0 0 8,5 1 5 5 4 8 9 0 8,558 0 0 8,557 0 0 8,556 0 0 9 Loans 905 1,285 886 1,077 1,195 1,114 1,513 751 10 Float 1,002 837 1,775 1,091 481 714 1,344 669 11 Other Federal Reserve assets 8,667 9,219 8,581 8,692 8,902 8,966 8,981 9,162 12 Gold stock 11,115 11,110 11,116 11,114 11,114 11,111 11,111 11,109 13 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 14 Treasury currency outstanding 15,863 15,915 15,855 15,867 15,879 15,891 15.903 15,915 ABSORBING RESERVE FUNDS 15 Currency in circulation 167,179 168,317 170,394 168,598 168,634 168,263 169,026 170,363 170,827 16 Treasury cash holdings 485 488 522 481 485 494 507 515 521 Deposits, other than reserve balances, with Federal Reserve Banks 17 Treasury 4,669 4,012 6,637 2,825 5,327 4,358 3,754 3,098 3,964 18 Foreign 214 229 220 224 225 210 236 208 217 19 Service-related balances and adjustments 1,452 1,940 1,215 1,553 1,596 1,548 1,677 1,542 1,525 20 Other 549 579 394 525 667 537 536 429 389 21 Other Federal Reserve liabilities and capital 5,492 5,705 6,098 5,634 5,570 5,832 5,874 6,313 5,818 22 Reserve balances with Federal Reserve Banks2 18,414 19,066 20,597 20,776 18,411 19,325 19,805 20,672 19,946 End-of-month figures Wednesday figures 1984 Feb. Apr. Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Apr. 18 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit 161,971 170,168 182,683 174,644 170,957 165,262 169,530 171,860 174,982 24 U.S. government securities' 140,847 150,814 162,134 151,465 150,968 145,670 151,027 150,972 155,409 2 2 5 6 H Bo e u ld g h u t n d ou er t r r ig e h p t u rchase agreements... 140,847 0 150,814 0 15 7 5 , ,0 0 4 9 2 2 14 2 8 , , 8 5 9 7 5 0 150,968 0 145,670 0 151,027 0 150,972 0 155,409 0 27 Federal agency obligations 8,568 8,558 8,982 8,713 8,558 8,558 8,558 8,556 8,556 28 Bought outright 8,568 8,558 8,556 8,558 8,558 8,558 8,558 8,556 8,556 29 Held under repurchase agreements... 0 0 426 155 0 0 0 0 0 30 Acceptances 0 0 305 5 0 0 0 0 0 31 Loans 1,020 896 907 2,449 935 718 588 2,425 671 32 Float 3,193 787 609 3,108 1,655 1,240 334 763 1,003 33 Other Federal Reserve assets 8,343 9,113 9,746 8,904 8,841 9,076 9,023 9,144 9,343 34 Gold stock 11,116 11,111 11,109 11,116 11,114 11,114 11,111 11,109 11,109 35 Special drawing rights certificate account . 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 36 Treasury currency outstanding 15,841 15,889 15,937 15,865 15,877 15,889 15,901 15,913 15,925 ABSORBING RESERVE FUNDS 37 Currency in circulation 167,206 168,737 170,309 168,863 168,528 168,488 169,719 171,001 170,962 38 Treasury cash holdings 484 503 534 484 493 503 513 520 528 Deposits, other than reserve balances with Federal Reserve Banks 39 Treasury 3,226 3,684 16,729 2,575 5,545 3,838 4,701 2,827 7,677 40 Foreign 247 221 345 283 241 187 200 217 183 41 Service-related balances and adjustments . 1,070 1,103 1,136 1,093 1,104 1,103 1,133 1,133 1,138 42 Other 498 562 324 502 550 506 457 421 336 43 Other Federal Reserve liabilities and capital 5,555 5,912 6,391 5,625 5,409 5,595 5,698 5,623 5,671 44 Reserve balances with Federal Reserve Banks2 15,260 21,064 18,579 26,819 20,696 16,663 18,740 21,758 20,139 • Figures are not updated this month because data were not available in time 2. Excludes required clearing balances and adjustments to compensate for for publication. float. 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. pledged with Federal Reserve Banks—and excludes (if any) securities sold and scheduled to be bought back under matched sale-purchase transactions. 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 Reserve balances with Reserve Banks1 26,163 24,804 20,585 21,059 20,943 20,986 21,325 18,414 19,484 20,351 2 Total vault cash2 19,538 20,392 20,798 20,471 20,558 20,755 22,578 22,269 20,396 20,152 3 Vault cash used to satisfy reserve requirements3 . 15,755 17,049 17,331 17,078 17,201 17,908 18,795 17,951 16,794 16,802 4 Surplus vault cash4 3,783 3,343 3,467 3,393 3,357 2,847 3,782 4,318 3,602 3,349 5 Total reserves5 41,918 41,853 37,916 38,137 38,144 38,894 40,120 36,365 36,278 37,153 6 Required reserves 41,606 41,353 37,418 37,632 37,615 38,333 39,507 35,423 35,569 36,663 7 Excess reserve balances at Reserve Banks6 312 500 498 505 529 561 613 942 709 490 8 Total borrowings at Reserve Banks 642 697 1,441 837 912 745 715 567 952 1,234 9 Seasonal borrowings at Reserve Banks 53 33 191 142 119 96 86 103 133 139 10 Extended credit at Reserve Banks7 149 187 515 255 6 2 4 5 27 44 Weekly and biweekly averages of daily figures for week ending8 1984 Jan. 25 Feb. 1 Feb. 15 Feb. 29 Mar. 14 Mar. 28 Apr. 11 Apr. 25 May 9P May 23p 11 Reserve balances with Reserve Banks1 20,956 20,798 18,445 18,212 19,948 18,859 20,237 20,556 20,026 19,396 12 Total vault cash2 23,238 22,475 22,774 21,750 19,980 20,938 19,803 20,476 20,010 20,655 13 Vault cash used to satisfy reserve requirements3 . 19,294 18,567 18,406 17,452 16,458 17,188 16,520 17,103 16,581 17,158 14 Surplus vault cash4 3,944 3,908 4,368 4,298 3,522 3,750 3,282 3,373 3,428 3,496 15 Total reserves5 40,250 39,365 36,851 35,664 36,406 36,047 36,758 37,659 36.607 36,555 16 Required reserves 39,670 38,862 35,656 34,943 35,635 35,322 36,413 37,091 36,016 35,936 17 Excess reserve balances at Reserve Banks6 580 503 1,195 721 770 725 344 568 591 619 18 Total borrowings at Reserve Banks 505 677 556 571 689 1,136 1,313 1,232 1,063 4,179 19 Seasonal borrowings at Reserve Banks 96 109 90 116 118 149 131 138 159 195 20 Extended credit at Reserve Banks7 6 3 3 7 21 30 36 44 61 33 1. Excludes required clearing balances and adjustments to compensate for adjustments to compensate for float, plus vault cash used to satisfy reserve float. requirements. Such vault cash consists of all vault cash held during the lagged 2. Dates refer to the maintenance periods in which the vault cash can be used to computation period by institutions having required reserve balances at Federal satisfy reserve requirements. Under contemporaneous reserve requirements, Reserve Banks plus the amount of vault cash equal to required reserves during the maintenance periods end 30 days after the lagged computation periods in which maintenance period at institutions having no required reserve balances. the balances are held. 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy 3. Equal to all vault cash held during the lagged computation period by reserve requirements less required reserves. institutions having required reserve balances at Federal Reserve Banks plus the 7. Extended credit consists of borrowing at the discount window under the amount of vault cash equal to required reserves during the maintenance period at terms and conditions established for the extended credit program to help institutions having no required reserve balances. depository institutions deal with sustained liquidity pressures. Because there is 4. Total vault cash at institutions having no required reserve balances less the not the same need to repay such borrowing promptly as there is with traditional amount of vault cash equal to their required reserves during the maintenance short-term adjustment credit, the money market impact of extended credit is period. similar to that of nonborrowed reserves. 5. Total reserves not adjusted for discontinuities consist of reserve balances 8. Biweekly averages beginning Feb. 15, 1984. with Federal Reserve Banks, which exclude required clearing balances and 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1984 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30^ May 7 May 14 May 21 May 28 One day and continuing contract 1 Commercial banks in United States 52,319 62,747 60,140 57,002 53,458 59,973 57,661 58,641 57,887 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 22,624 23,784 23,007 21,030 20,606 21,749 22,804 21,164 22,206 3 Nonbank securities dealers 6,841 6,334 6,022 5,984 6,106 5,791 6,016 6,493 7,057 4 All other 26,592 27,527 24,903 24,413 25,893 26,181 26,133 26,775 25,006 All other maturities 5 Commercial banks in United States 7,516 7,810 8,463 8,991 8,285 8,237 8,688 9,739 10,303 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 10,832 10,727 11,421 11,324 11,598 12,116 12,375 12,642 12,647 7 Nonbank securities dealers 7,240 6,667 7,366 8,845 8,632 8,542 8,036 7,375 7,951 8 All other 9,104 8,780 11,634 12,086 9,164 9,3% 9,823 10,504 10,030 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 22,142 24,229 23,674 23,439 21,468 23,192 22,907 25,162 24,347 10 Nonbank securities dealers 5,315' 5,694r 5,342r 5,374r 5,617 7,069 5,876 5,686 5,488 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic NonfinancialS tatistics • June 1984 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit1 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 4/30/84 date rate 4/30/84 rate 4/30/84 rate 4/30/84 rate Boston 4/9/84 8'/2 9 8V2 10 9>/i 11 9 Vi 4/9/84 New York 4/9/84 4/9/84 Philadelphia 4/9/84 4/9/84 Cleveland 4/10/84 4/10/84 Richmond 4/9/84 4/9/84 Atlanta 4/10/84 4/10/84 Chicago 4/9/84 4/9/84 St. Louis 4/9/84 4/9/84 Minneapolis 4/9/84 4/9/84 Kansas City .... 4/13/84 4/13/84 Dallas 4/9/84 4/9/84 San Francisco... 4/13/84 %Vi 9 8'/2 10 9i/> I 1 9!h 4/13/84 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. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Effective c 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 iVi 1978-- July 3 7-71/4 71/4 11998811—— MMaayy 5 13-14 14 1974— Apr. 25 m-% 8 10 7'/4 IV* 8 14 14 3 0 8 8 Aug. 21 73/4 73/4 Nov. ? 13-14 13 Dec. 9 7V4-8 73/4 Sept. 22 8 8 6 13 13 16 73/4 73/4 Oct. 16 8-8'/2 Dec. 4 12 12 20 m m 1975— Jan. 1 6 0 7 7 1 1 / / 4 4 - - 7 7 3 3 / / 4 4 7 7 3 > / / 4 4 Nov. 3 1 8'/2 9 - V 9 i ' /2 9 9 1 V /2 2 11998822—— JJuullyy ? 73 n llV U i ' - / 1 i 2 i1m1!h 24 71/4 71/4 AAuugg.. 7 11-11 Vi 11 F M e a b r . . 1 5 7 0 6 63 '/4 6 /4 - 3 - 6 / 7 4 3 1 / / 4 4 6 6 6 3 3 '/ / / 4 4 4 1979--J AA ul uu y gg .. 2 2 1 0 0 7 lO 1 1 - 0 0 lO l/ ' 2 /z 1 1 l 0 0 O " /! ' /z 7 1 7 3 6 10 1 - 1 0 1 1 1 0 * '/^ 1 1 1 0 1 0 Vi May 1 1 6 4 6- 6 6 1 ' / / 4 4 6 6 1/4 SSeepptt.. 2 1 1 9 10 1 ' 1 /5 -l 1 u 1 1 Oct. 310? 9>/ 1 2 0 -1 0 1m0 23 6 6 Oct. 8 11-12 12 13 9 Vi 9>/2 10 12 12 Nov. 22 9-9W 9 1976— Jan. 19 51/2-6 5% 76 9 9 Nov. 2 2 2 2 3 6 5'/ 5 S 4 1 V - / 5 4 i Vi 5 5 51 1 '/ / / 4 4 2 1980-- M Fe a b y . 2 1 1 9 5 9 1 1 2 2 1 - - 3 1 1 3 3 1 1 1 3 3 3 Dec. 1 I 1 S 4 7 8 8 V S '/ > 2 2 / - i 9 - 9 9 8S VVi 2 30 12 12 1977— Aug. 30 5i/4-53/4 51/4 June 13 11-12 U 11998844—— AApprr.. 9 8'/2-9 3 1 51/4-53/4 53/4 16 11 11 Sept. 2 53/4 53/4 JJuullyy 28 10-11 10 Oct. 26 6 6 29 10 10 Sept. 26 11 11 1978— Jan. 9 6-6 Vi 6 Vi Nov. 17 12 12 20 6'/2 6'/z Dec. 5 12-13 13 May 11 6i/5:-7 7 8 13 13 12 7 7 In effect Apr. 30 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 INSTITUTIONS' Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyy dd ppee ee pp oo oo ff ss ii dd tt eepp iinn oo tt ss ee ii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo oo ff ss ii d tt d ee ii pp nn oo ttee ss rr iitt vv ,, aa a ll a 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand1 Net transaction accounts7 8 7 12/30/76 $0-$28.9 million 3 12/29/83 9'/2 12/30/76 Over $28.9 million 1122 1122//2299//8833 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million )23/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'A 12/30/76 By original maturity Less than l'/2 years 3 10/6/83 Time and savings2-3 1 '/2 years or more 0 10/6/83 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2>/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 of foreign 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 of about three banks abroad was also reduced to zero from 4 percent. years was completed on Feb. 2, 1984. All new institutions will have a two-year Effective with the reserve computation period beginning Nov. 16, 1978, phase-in beginning with the date that they open for business, except for those domestic deposits of Edge corporations were subject to the same reserve institutions that have total reservable liabilities of $50 million or more. requirements as deposits of member banks. 7. Transaction accounts include all deposits on which the account holder is 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as permitted to make withdrawals by negotiable or transferable instruments, pay- Christmas and vacation club accounts were subject to the same requirements as ment orders of withdrawal, and telephone and preauthorized transfers (in excess savings deposits. of three per month) for the purpose of making payments to third persons or others. The average reserve requirement on savings and other time deposits before However, MMDAs and similar accounts offered by institutions not subject to the implementation of the Monetary Control Act had to be at least 3 percent, the rules of the Depository Institutions Deregulation Committee (DIDC) that permit minimum specified by law. no more than six preauthorized, automatic, or other transfers per month of which 4. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent no more than three can be checks—are not transaction accounts (such accounts was imposed on large time deposits of $100,000 or more, obligations of affiliates, are savings deposits subject to time deposit reserve requirements.) and ineligible acceptances. This supplementary requirement was eliminated with 8. The Monetary Control Act of 1980 requires that the amount of transaction the maintenance period beginning July 24, 1980. accounts against which the 3 percent reserve requirement applies be modified Effective with the reserve maintenance period beginning Oct. 25, 1979, a annually by 80 percent of the percentage increase in transaction accounts held by marginal reserve requirement of 8 percent was added to managed liabilities in all depository institutions determined as of June 30 each year. Effective Dec. 31, excess of a base amount. This marginal requirement was increased to 10 percent 1981, the amount was increased accordingly from $25 million to $26 million; and beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and effective Dec. 30, 1982, to $26.3 million; and effective Dec. 29, 1983, to $28.9 was eliminated beginning July 24, 1980. Managed liabilities are defined as large million. time deposits, Eurodollar borrowings, repurchase agreements against U.S. 9. In general, nonpersonal time deposits are time deposits, including savings government and federal agency securities, federal funds borrowings from non- deposits, that are not transaction accounts and in which a beneficial interest is member institutions, and certain other obligations. In general, the base for the held by a depositor that is not a natural person. Also included are certain marginal reserve requirement was originally the greater of (a) $100 million or (b) transferable time deposits held by natural persons, and certain obligations issued the average amount of the managed liabilities held by a member bank. Edge to depository institution offices located outside the United States. For details, see corporation, or family of U.S. branches and agencies of a foreign bank for the two section 204.2 of Regulation D. reserve computation periods ending Sept. 26, 1979. For the computation period beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease NOTE. Required reserves must be held in the form of deposits with Federal in an institution's U.S. office gross loans to foreigners and gross balances due Reserve Banks or vault cash. Nonmembers may maintain reserve balances with a from foreign offices of other institutions between the base period (Sept. 13-26, Federal Reserve Bank indirectly on a pass-through basis with certain approved 1979) and the week ending Mar. 12, 1980, whichever was greater. For the institutions. computation period beginning May 29, 1980, the base was increased by iVi 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 • June 1984 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions' Percent per annum Commercial banks mut S u a al v i s n a g v s i n a g n s d b l a o n an k s a ( s t s h o r c if i t a t i i n o s n t s i tu a t n i d o ns)1 In effect May 31, 1984 In effect May 31, 1984 Type of deposit Effective date Percent Effective date 1 Savings 5>/2 1/1/84 51/2 7/1/79 2 Negotiable order of withdrawal accounts 5</4 12/31/80 51/4 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 1/1/84 51/2 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 13,899 17,067 18,888 309 1,435 3,695 0 368 33,,115599 33,,228833 2 Gross sales 6,746 8,369 3,420 0 0 0 1,967 828 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,816 3,000 2,400 0 700 0 1,300 600 0 3,283 Others within 1 year 5 Gross purchases 317 312 484 0 155 0 0 0 0 119988 6 Gross sales 23 0 0 0 0 0 0 0 0 0 7 Maturity shift 13,794 17,295 18,887 529 2,828 915 573 -2,488 1,012 347 8 Exchange -12,869 -14,164 -16,553 -636 -2,930 0 1,530 -4,574 0 -2,223 9 Redemptions 0 0 87 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 1,702 1,797 1,8% 0 820 0 0 0 00 808 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -10,299 -14,524 -15,533 -256 -1,684 -915 -487 2,488 -1,012 -273 13 Exchange 10,117 11,804 11,641 636 1,796 0 1,530 2,861 0 2,223 5 to 10 years 14 Gross purchases 393 388 890 0 349 0 0 0 0 200 15 Gross sales 0 0 0 0 0 0 300 0 0 0 16 Maturity shift -3,495 -2,172 -2,450 -273 -250 0 -86 97 0 -75 17 Exchange 1,500 2,128 2,950 0 700 0 0 1,000 0 0 Over 10 years 18 Gross purchases 379 307 383 0 151 0 0 0 0 277 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -601 -904 0 -894 0 0 -97 0 0 21 Exchange 1,253 234 1,962 0 434 0 0 713 0 0 All maturities 22 Gross purchases 16,690 19,870 22,540 309 2,909 3,695 0 368 3,159 1,484 23 Gross sales 6,769 8,369 3,420 0 0 0 2,267 828 0 0 24 Redemptions 1,816 3,000 2,487 0 700 0 1,300 600 0 0 Matched transactions 25 Gross sales 589,312 543,804 578,591 53,751 56,858 58,979 54,833 55,656 66,827 72,293 26 Gross purchases 589,647 543,173 576,908 53,367 57,991 56,404 58,096 47,310 73,634 71,754 Repurchase agreements 27 Gross purchases 79,920 130,774 105,971 19,247 3,257 3,644 1144,,224455 0 44,,999966 1155,,331133 28 Gross sales 78,733 130,286 108,291 28,499 3,257 2,260 15,629 0 4,996 8,220 29 Net change in U.S. government securities 9,626 8,358 12,631 -9,326 3,342 2,504 -1,688 -9,407 9,966 11,321 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 494 0 0 0 0 0 0 0 00 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 108 189 292 6 84 2 40 38 10 2 Repurchase agreements 33 Gross purchases 13,320 18,957 8,833 1,960 497 634 931 0 660099 11,,224477 34 Gross sales 13,576 18,638 9,213 2,510 497 426 1,139 0 609 820 35 Net change in federal agency obligations 130 130 -672 -557 -84 206 -248 -38 -10 424 BANKERS ACCEPTANCES 36 Repurchase agreements, net -582 1,285 -1,062 -1,122 0 418 -418 0 0 305 37 Total net change in System Open Market Account 9,175 9,773 10,897 -11,005 3,258 3,128 -2,354 -9,444 9,956 12,050 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 • June 1984 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1984 1984 May 2 May 9 May 16 May 23 May 30 Mar. Apr. May Consolidated condition statement ASSETS 1 Gold certificate account 11,107 11,107 11,107 11,104 11,104 11,111 11,109 11,104 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 476 472 474 469 453 520 482 443 Loans 4 To depository institutions 807 2,701 5,459 3,225 2,703 896 907 2,832 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 224 442277 00 00 00 00 330055 442266 Federal agency obligations 7 Bought outright 8,556 8,556 8,516 88,,551166 8,515 88,,555588 88,,555566 88,,551155 8 Held under repurchase agreements 322 114 0 0 0 0 426 336 U.S. government securities Bought outright 9 Bills 71,644 68,216 63,486 6655,,221177 67,766 6666,,336666 6699,,111111 6655,,881144 10 64,127 64,127 63,870 63,870 63,870 62,921 64,127 63,870 11 Bonds 21,804 21,804 22,061 22,061 22,061 21,527 21,804 22,061 12 Total bought outright1 157,575 154,147 149,417 151,148 153,697 150,814 155,042 151,745 13 Held under repurchase agreements 6,139 2,397 0 0 0 0 7,092 3,124 14 Total U.S. government securities 163,714 156,544 149,417 151,148 153,697 150,814 162,134 154,869 15 Total loans and securities 173,623 168,342 163,392 162,889 164,915 160,268 172,328 166,978 16 Cash items in process of collection 9,907 7,610 8,435 7,352 10,891 7,698 7,044 8,770 17 Bank premises 549 549 555 555 553 549 548 553 Other assets 18 Denominated in foreign currencies2 3,912 3,914 3,916 3,919 3,842 4,011 3,912 3,794 19 All other3 5,313 5,234 3,514 3,643 3,865 4,553 5,286 3,840 20 Total assets 209,505 201,846 196,011 194,549 200,241 193,328 205,327 200,100 LIABILITIES 71 Federal Reserve notes 156,005 157,071 157,188 157,075 158,510 153,871 155,388 158,727 Deposits 72 To depository institutions 21,585 27,120 19,228 21,591 19,492 2222,,116677 1199,,771155 2211,,668866 23 U.S. Treasury—General account 16,436 4,029 5,0% 2,594 6,306 3,684 16,729 4,855 24 Foreign—Official accounts 192 275 229 212 292 221 345 295 25 Other 562 541 493 407 425 562 324 416 26 Total deposits 38,775 31,965 25,046 24,804 26,515 26,634 37,113 27,252 77 Defeaed availability cash items 8,646 7,034 8,214 6,920 9,501 6,911 6,435 8,182 28 Other liabilities and accrued dividends4 2,841 2,416 2,193 2,382 2,338 2,427 2,920 2,593 29 Total liabilities 206,267 198,486 192,641 191,181 196,864 189,843 201,856 196,754 CAPITAL ACCOUNTS 30 Capital paid in 1,521 1,525 1,529 1,529 1,532 1,499 1,520 1,531 31 Surplus 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 32 Other capital accounts 252 370 376 374 380 521 486 350 33 Total liabilities and capital accounts 209,505 201,846 196,011 194,549 200,241 193,328 205,327 200,100 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 115,369 114,095 114,378 113,650 113,517 113,547 116,173 111144,,449955 Federal Reserve note statement 35 Federal Reserve notes outstanding 184,739 185,290 185,800 186,279 186,105 183,132 184,4% 185,998 36 LESS: Held by bank5 28,734 28,219 28,612 29,204 27,595 29,261 29,108 27,271 37 Federal Reserve notes, net 156,005 157,071 157,188 157,075 158,510 153,871 155,388 158,727 Collateral held against notes net: 38 Gold certificate account 11,107 11,107 11,107 11,104 11,104 11,111 11,109 1111,,110044 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 140,280 141,346 141,463 141,353 142,788 138,142 139,661 143,005 42 Total collateral 156,005 157,071 157,188 157,075 158,510 153,871 155,388 158,727 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 1984 May 2 May 9 May 16 May 23 May 30 March 30 April 30 May 31 1 Loans—Total 807 2,701 5,459 3,225 2,703 896 907 2,832 2 Within 15 days 717 2,604 5,366 3,167 2,660 864 864 2,764 3 16 days to 90 days 90 97 93 58 43 32 43 68 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 224 427 0 0 0 0 305 426 6 Within 15 days 224 427 0 0 0 0 305 426 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 163,714 156,544 149,417 151,148 153,697 150,814 162,134 154,869 10 Within 15 days' 15,243 10,026 6,705 4,804 9,551 3,424 10,462 7,751 11 16 days to 90 days 33,596 32,070 29,502 33,066 30,785 35,062 35,614 30,922 17 91 days to 1 year 45,379 44,952 44,555 44,623 44,706 44,980 46,562 47,631 13 Over 1 year to 5 years 36,267 36,267 35,228 35,228 35,228 34,522 36,267 35,138 14 Over 5 years to 10 years 14,322 14,322 14,339 14,339 14,339 14,196 14,322 14,339 15 Over 10 years 18,907 18,907 19,088 19,088 19,088 18,630 18,907 19,088 16 Federal agency obligations—Total 8,878 8,670 8,516 8,516 8,515 8,558 8,982 8,851 17 Within 15 days1 363 155 106 179 159 188 561 495 18 16 days to 90 days 635 720 616 542 559 763 635 559 19 91 days to 1 year 1,751 1,666 1,674 1,674 1,638 1,668 1,657 1,638 20 Over 1 year to 5 years 4,409 4,409 4,400 4,401 4,421 4,176 4,409 4,421 21 Over 5 years to 10 years 1,321 1,321 1,321 1,321 1,339 1,360 1,321 1,339 22 Over 10 years 399 399 399 399 399 403 399 399 1. Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic NonfinancialS tatistics • June 1984 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE Billions of dollars, averages of daily figures 1983 1984 1980 1981 1982 1983 Dec. Dec. Dec. Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS'' 1 Total reserves2 30.64 31.51 33.63 35.28 35.31 35.32 35.25 35.28 35.50 36.07 36.10 36.11 2 Nonborrowed reserves 28.95 30.88 33.00 34.51 33.87 34.47 34.34 34.51 34.79 35.50 35.15 34.87 3 Nonborrowed reserves plus extended credit3 28.95 31.03 33.18 34.51 34.38 34.73 34.35 34.51 34.79 35.50 35.18 34.92 4 Required reserves 30.13 31.20 33.13 34.72 34.81 34.81 34.72 34.72 34.89 35.12 35.40' 35.62 5 Monetary base4 150.11 157.82 169.81 184.97 181.78 182.85 183.95 184.97 186.94 188.58 188.71 189.63 Not seasonally adjusted 6 Total reserves2 31.34 32.23 34.35 36.00 35.01 35.31 35.35 36.00 37.30 35.65 35.63 36.47 7 Nonborrowed reserves 29.65 31.59 33.71 35.22 33.57 34.47 34.45 35.22 36.59 35.09 34.68 35.23 8 Nonborrowed reserves plus extended credit3 29.65 31.74 33.90 35.23 34.08 34.73 34.45 35.23 36.59 35.09 34.70 35.28 9 Required reserves 30.82 31.91 33.85 35.44 34.51 34.81 34.82 35.44 36.69 34.71 34.92 35.98 10 Monetary base4 152.80 160.65 172.83 188.23 181.24 182.67 185.04 188.23 188.10 185.93 187.16 189.62 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 40.66 41.93 41.85 38.89 37.92 38.14 38.14 38.89 40.12 36.37 36.28 37.15 12 Nonborrowed reserves 38.97 41.29 41.22 38.12 36.48 37.29 37.24 38.12 39.41 35.80 35.32 35.92 13 Nonborrowed reserves plus extended credit3 38.97 41.44 41.41 38.12 36.99 37.55 37.25 38.12 39.41 35.80 35.33 35.78 14 Required reserves 40.15 41.61 41.35 38.33 37.42 37.63 37.62 38.33 39.5K 35.42 35.57' 36.66 15 Monetary base4 163.00 170.47 180.52 192.36 185.11 186.60 188.97 192.36 192.30 186.67 187.81 190.31 1. Figures incorporate adjustments for discontinuities associated with the Reserve Banks and the currency component of the money stock less the amount implementation of the Monetary Control Act and other regulatory changes to of vault cash holdings of thrift institutions that is included in the currency reserve requirements. To adjust for discontinuities due to changes in reserve component of the money stock plus, for institutions not having required reserve requirements on reservable nondeposit liabilities, the sum of such required balances, the excess of current vault cash over the amount applied to satisfy reserves is subtracted from the actual series. Similarly, in adjusting for discontin- current reserve requirements. After the introduction of contemporaneous reserve uities in the monetary base, required clearing balances and adjustments to requirements (CRR), currency and vault cash figures are measured over the compensate for float also are subtracted from the actual series. weekly computation period ending Monday. 2. Total reserves not adjusted for discontinuities consist of reserve balances Before CRR, all components of the monetary base other than excess reserves with Federal Reserve Banks, which exclude required clearing balances and are seasonally adjusted as a whole, rather than by component, and excess adjustments to compensate for float, plus vault cash used to satisfy reserve reserves are added on a not seasonally adjusted basis. After CRR, the seasonally requirements. Such vault cash consists of all vault cash held during the lagged adjusted series consists of seasonally adjusted total reserves, which include computation period by institutions having required reserve balances at Federal excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted Reserve Banks plus the amount of vault cash equal to required reserves during the currency component of the money stock and the remaining items seasonally maintenance period at institutions having no required reserve balances. adjusted as a whole. 3. Extended credit consists of borrowing at the discount window under the 5. Reflects actual reserve requirements, including those on nondeposit liabilterms and conditions established for the extended credit program to help ities, with no adjustments to eliminate the effects of discontinuities associated depository institutions deal with sustained liquidity pressures. Because there is with implementation of the Monetary Control Act or other regulatory changes to not the same need to repay such borrowing promptly as there is with traditional reserve requirements. short-term adjustment credit, the money market impact of extended credit is similar to that of nonborrowed reserves. NOTE. Latest monthly and biweekly figures are available from the Board's 4. The monetary base not adjusted for discontinuities consists of total reserves H.3(502) statistical release. Historical data and estimates of the impact on plus required clearing balances and adjustments to compensate for float at Federal required reserves of changes in reserve requirements are available from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Billions of dollars, averages of daily figures 1984 item DD 19 ee 8 cc 0 .. DD 19 ee 8 cc 1 .. DD 19 ee 8 cc 2 .. DD 19 ee 8 cc 3 .. JJaann.. FFeebb.. MMaarr.. AApprr.. Seasonally adjusted 1 Ml 414.9 441.9 480.5 525.3 530.0 532.9 535. V 535.3 2 M2 1,632.6 1,796.6 1,965.3 2,196.1 2,206.5' 2,221.8' 2,229.3' 2,242.5 1 M3 1,989.8 2,236.7 2,460.3 2,706.7 2,721.6' 2,744.0' 2,765.3' 2,709.8 4 L 2,326.0 2,598.4 2,868.7 3,176.9' 3,198.2' 3,227.5' 3,265.6 n.a. 5 Debt2 3,946.9 4,323.8 4,710.1 5,244.8' 5,298.0' 5,358.3' 5,406.0 n.a. Ml components 6 Currency2 116.7 124.0 134.1 148.0 149.9 150.2 150.9 151.8 7 Travelers checks3 4.2 4.3 4.3 4.9 4.9 5.0 5.0 5.1 8 Demand deposits4 266.5 236.2 239.7 243.7 244.5 243.8 244.0 245.2 9 Other checkable deposits5 27.6 77.4 102.4 128.8 130.7 133.8 135.3 133.1 Nontransactions components 10 In M26 1,217.7 1,354.6 1,484.8 1,670.8 1,676.5' 1,688.9 1,694.2' 1,707.2 11 In M3 only7 357.2 440.2 495.0 510.6 515.1' 522.2 536.0' 548.3 Savings deposits9 12 Commercial Banks 185.9 159.7 164.9 134.6 132.1 130.1 128.9 128.6 13 Thrift Institutions 215.6 186.1 197.2 178.2 177.7 176.5 176.6' 176.8 Small denomination time deposits9 14 Commerical Banks 287.5 349.6 382.2 353.1 352.9 352.8 353.5 355.8 15 Thrift Institutions 443.9 477.7 474.7 440.0 444.1 448.1 449.9' 453.4 Money market mutual funds 16 General purpose and broker/dealer 61.6 150.6 185.2 138.2 137.9 142.1 144.8 146.1 17 Institution-only 15.0 36.2 48.4 40.3 40.6 41.6 41.8 41.8 Large denomination time deposits10 18 Commercial Banks" 213.9 247.3 261.8 225.5 227.2' 228.3 232.7 236.3 19 Thrift Institutions 44.6 54.3 66.1 100.4r 106.3' 111.9 115.5' 119.4 Debt components 20 Federal debt 742.8 830.1 991.4 1,177.9 1,204.7' 1,221.5 1,219.8 n.a. 21 Non-federal debt 3,204.1 3,493.7 3,718.7 4,066.8r 4,093.3' 4,136.8 4,186.2 n.a. Not seasonally adjusted 22 Ml 424.8 452.3 491.9 537.8 534.8 521.9 528.1 543.1 23 M2 1,635.4 1,798.7 1,967.4 2,197.9' 2,210.3' 2,211.7' 2,230.3' 2,254.3 24 M3 1,996.1 2,242.7 2,466.6 2,712.8 2,727.5' 2,736.7' 2,766.5' 2,799.3 25 L 2,332.8 2,605.6 2,876.5 3,184.7' 3,209.6' 3,229.0 3,271.8 n.a. 26 Debt2 3,946.9 4,323.8 4,710.1 5,244.8' 5,286.2' 5,339.1' 5,388.2 n.a. Ml components 21 Currency2 118.8 126.1 136.4 150.5 148.4 148.3 149.8 151.5 28 Travelers checks3 3.9 4.1 4.1 4.6 4.6 4.7 4.8 4.8 29 Demand deposits4 274.7 243.6 247.3 251.6 249.4 237.9 239.4 247.8 30 Other checkable deposits5 27.4 78.5 104.1 131.2 132.5 130.9 134.1 139.0 Nontransactions components 31 M2« 1,210.6 1,346.3 1,475.5 1,660.1 1,675.5' 1,689.8' 1,702.1' 1,711.2 32 M3 only7 360.7 444.1 499.2 514.8' 517.2' 525.0' 536.3' 545.0 Money market deposit accounts 33 Commercial banks n.a. n.a. 26.3 230.0' 234.2 238.3 242.6 245.3 34 Thrift institutions n.a. n.a. 16.6 145.9' 146.2' 147.7' 149.9' 151.0 Savings deposits8 35 Commercial Banks 183.8 157.5 162.1 132.0 131.3 129.9 130.2 130.5 36 Thrift Institutions 214.4 184.7 195.5 176.5 176.2' 175.3' 177.0' 178.0 Small denomination time deposits9 37 Commercial Banks 286.0 347.7 380.1 351.0 353.7 355.4' 356.0' 356.4 38 Thrift Institutions 442.3 475.6 472.4 437.6 445.7 450.0' 451.6' 455.2 Money market mutual funds 39 General purpose and broker/dealer 61.6 150.6 185.2 138.2 137.9 142.1 144.8 146.1 40 Institution-only 15.0 36.2 48.4 40.3 40.6 41.6 41.8 41.8 Large denomination time deposits10 41 Commercial Banks11 218.5 252.1 266.2 229^ 229.3 229.7 233.1' 233.7 42 Thrift Institutions 44.3 54.3 66.2 100.7 105.4' 111.2' 114.2' 118.0 Debt components 43 Federal debt 742.8 830.1 991.4 1,177.9 1,201.6 1,219.8 1,227.4 n.a. 44 Non-federal debt 3,204.1 3,943.7 3,718.7 4066.80 4,084.5' 4,119.3' 4,160.8 n.a. For notes see bottom of next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • June 1984 1.22 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposits. Monthly data are at annual rates. 1983 1984 IYOI Oct. Nov. Dec. Jan. Feb. Mar. Seasonally adjusted DEBITS TO Demand deposits2 1 All insured banks 80,858.7 90,914.4 108,646.4 118,407.2 114,466.6 115,381.5 120,954.6 126,749.9 116,416.7 2 Major New York City banks 33,891.9 37,932.9 47,336.9 52,639.9 49,715.8 48,255.7 51,952.5 55,776.7 50,765.2 3 Other banks 46,966.9 52,981.6 61,309.5 65,767.3 64,750.8 67,125.8 69,002.2 70,973.1 65,651.5 4 ATS-NOW accounts3 743.4 1,036.2 1,394.9 1,392.8 1,447.4 1,499.6 1,345.1 1,491.1 1,464.9 5 Savings deposits4 672.7 721.4 735.7 643.7 674.9 661.4 620.8 708.3 688.9 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 285.8 324.2 376.8 409.6 398.3 395.7 414.2 434.7 394.9 7 Major New York City banks 1,105.1 1,287.6 1,512.0 1,703.8 1,645.6 1,541.4 1,650.9 1,747.7 1,649.5 8 Other banks 186.2 211.1 238.5 254.7 251.8 257.9 264.9 273.3 248.7 9 ATS-NOW accounts3 14.0 14.5 15.5 14.9 15.5 15.9 13.8 15.0 14.7 10 Savings deposits4 4.1 4.5 5.3 4.9 5.1 5.0 4.7 5.5 5.4 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 81,197.9 91,031.9 108,459.5 114,191.9 110,963.9 122,558.3 123,567.2 114,721.3 124,088.6 12 Major New York City banks 34,032.0 38,001.0 47,238.2 49,910.9 47.508.1 52,418.5 52,895.2 50,724.8 54,301.1 13 Other banks 47,165.9 53,030.9 61,221.3 64,280.9 63,455.8 70,139.7 70,672.0 63,996.5 69,787.5 14 ATS-NOW accounts3 737.6 1,027.1 1,387.5 1,373.2 1,327.2 1,465.4 1,601.5 1,389.5 1,504.3 15 MMDA5 0 0 567.4 700.3 639.1 745.8 793.4 682.1 790.3 16 Savings deposits4 672.9 720.0 736.4 672.9 635.3 647.1 672.5 649.9 711.9 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 286.1 325.0 376.1 391.1 381.7 407.0 412.3 402.7 431.8 18 Major New York City banks 1,114.2 1,295.7 1,510.0 1,595.5 1,553.4 1,613.6 1,581.5 1,618.7 1,795.5 19 Other banks 186.2 211.5 238.1 246.6 244.0 261.1 265.4 252.4 271.4 20 ATS-NOW accounts3 14.0 14.3 15.4 14.6 14.0 15.1 16.2 14.3 15.2 21 MMDA5 0 0 2.8 3.2 2.8 3.3 3.4 2.9 3.3 22 Savings deposits4 4.1 4.5 5.3 5.1 4.8 4.9 5.2 5.1 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. NOTES TO TABLE 1.21 1. Composition of the money stock measures and debt is as follows: 2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults commercial banks. Excludes the estimated amount of vault cash held by thrift of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits institutions to service their OCD liabilities. at all commercial banks other than those due to domestic banks, the U.S. 3. Outstanding amount of U.S. dollar-denominated travelers checks of nongovernment, and foreign banks and official institutions less cash items in the bank issuers. Travelers checks issued by depository institutions are included in process of collection and Federal Reserve float ; and (4) other checkable deposits demand deposits. (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer 4. Demand deposits at commercial banks and foreign-related institutions other service (ATS) accounts at depository institutions, credit union share draft than those due to domestic banks, the U.S. government, and foreign banks and accounts, and demand deposits at thrift institutions. The currency and demand official institutions less cash items in the process of collection and Federal deposit components exclude the estimated amount of vault cash and demand Reserve float. Excludes the estimated amount of demand deposits held at deposits respectively held by thrift institutions to service their OCD liabilities. commercial banks by thrift institutions to service their OCD liabilities. M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) 5. Consists of NOW and ATS balances at all depository institutions, credit issued by all commercial banks and overnight Eurodollars issued to U.S. residents union share draft balances, and demand deposits at thrift institutions. Other by foreign branches of U.S. banks worldwide, MMDAs, savings and small- checkable deposits seasonally adjusted equals the difference between the seasondenomination time deposits (time deposits—including retail RPs—in amounts of ally adjusted sum of demand deposits plus OCD and seasonally adjusted demand less than $100,000), and balances in both taxable and tax-exempt general purpose deposits. Included are all ceiling free "Super NOWs," authorized by the and broker/dealer money market mutual funds. Excludes individual retirement Depository Institutions Deregulation committee to be offered beginning Jan. 5, accounts (IRA) and Keogh balances at depository institutions and money market 1983. funds. Also excludes all balances held by U.S. commercial banks, money market 6. Sum of overnight RPs and overnight Eurodollars, money market fund funds (general purpose and broker/dealer), foreign governments and commercial balances (general purpose and broker/dealer), MMDAs, and savings and small banks, and the U.S. government. Also subtracted is a consolidation adjustment time deposits, less the consolidation adjustment that represents the estimated that represents the estimated amount of demand deposits and vault cash held by amount of demand deposits and vault cash held by thrift institutions to service thrift institutions to service their time and savings deposits. their time and savings deposits liabilities. M3: M2 plus large-denomination time deposits and term RP liabilities (in 7. Sum of large time deposits, term RPs and term Eurodollars of U.S. amounts of $100,000 or more) issued by commercial banks and thrift institutions, residents, money market fund balances (institution-only), less a consolidation term Eurodollars held by U.S. residents at foreign branches of U.S. banks adjustment that represents the estimated amount of overnight RPs and Eurodolworldwide and at all banking offices in the United Kingdom and Canada, and lars held by institution-only money market funds. balances in both taxable and tax-exempt, institution-only money market mutual 8. Savings deposits exclude MMDAs. funds. Excludes amounts held by depository institutions, the U.S. government, 9. Small-denomination time deposits—including retail RPs— are those issued money market funds, and foreign banks and official institutions. Also subtracted is in amounts of less than $100,000. All individual retirement accounts (IRA) and a consolidation adjustment that represents the estimated amount of overnight RPs Keogh accounts at commercial banks and thrifts are subtracted from small time and Eurodollars held by institution-only money market mutual funds. deposits. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term 10. Large-denomination time deposits are those issued in amounts of $100,000 Treasury securities, commercial paper and bankers acceptances, net of money or more, excluding those booked at international banking facilities. market mutual fund holdings of these assets. 11. Large-denomination time deposits at commercial banks less those held by Debt: Debt of domestic nonfinancial sectors consists of outstanding credit money market mutual funds, depository institutions, and foreign banks and market debt of the U.S. government, state and local governments, and private official institutions. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers NOTE: Latest monthly and weekly figures are available from the Board's H.6 acceptances, and other debt instruments. The source of data on domestic (508) release. Historical data are available from the Banking Section, Division of nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt Research and Statistics, Board of Governors of the Federal Reserve System, data are on an end-of-month basis. Washington, D.C. 20551. 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 1982 1983 1984 1982 1983 1984 category Dec/ Dec. Jan/ Feb/ Mar. Apr. Dec/ Dec. Jan/ Feb/ Mar. Apr. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,412.0 1,568.1 1,585.2 1,604.8 1,621.6 1,630.8 1,422.4 1,579.5 1,587.4 1,600.1 1,616.1 1,630.3 2 U.S. Treasury securities 130.9 188.0 188.7 188.3 187.1 185.9 131.5 188.8 187.9 189.0 189.8 189.2 3 Other securities 239.2 247.5 252.0 252.2 253.2 250.7 240.6 249.0 252.2 251.6 252.7 250.7 4 Total loans and leases3 1,042.0 1,132.6 1,144.5 1,164.3 1,181.4 1,194.2 1,050.3 1,141.7 1,147.3 1,159.4 1,173.7 1,190.3 5 Commercial and industrial loans 392.3 413.4 418.1 423.6 433.8 436.5 394.5 415.8 416.8 421.9 432.6 438.9 6 Real estate loans 303.1 335.5 339.5 343.0 346.7 350.9 304.0 336.5 340.1 342.7 345.7 349.9 7 Loans to individuals 191.9 219.7 224.6 227.8 231.5 235.3 193.2 221.2 225.2 227.1 229.4 233.7 8 Security loans 24.7 27.3 27.5 30.8 27.2 26.8 25.5 28.2 27.6 29.8 26.4 26.8 9 Loans to nonbank financial institutions 31.1 29.7 30.8 30.6 30.6 30.9 32.1 30.6 30.9 30.7 30.2 30.7 10 Agricultural loans 36.3 39.6 39.8 40.0 40.2 40.6 36.3 39.6 39.6 39.4 39.4 39.9 11 Lease financing receivables... 13.1 13.1 13.4 13.5 13.5 13.5 13.1 13.1 13.4 13.5 13.5 13.5 12 All other loans 49.5 54.3 50.8 54.9 57.8 59.6 51.5 56.5 53.6 54.4 56.5 57.0 MEMO 13 Total loans and securities plus loans sold3 4 1,415.0 1,570.5 1,587.6 1,607.3 1,624.7 1,633.9 1,425.4 1,581.8 1,589.9 1,602.6 1619.2 1,633.4 14 Total loans plus loans sold3 4 ... 1,044.9 1,135.0 1,147.0 1,166.8 1,184.4 1197.31 1,053.3 1,144.0 1,149.8 1,161.9 1,176.7 1,193.5 15 Total loans sold to affiliates3 4... 2.9 2.4 2.4 2.5 3.1 3.1 2.9 2.4 2.4 2.5 3.1 3.1 16 Commercial and industrial loans plus loans sold4 394.5 415.3 419.9 425.5 435.7 438.4 396.8 417.7 418.6 423.7 434.5 440.9 17 Commercial and industrial loans sold4 2.3 1.8 1.9 1.9 1.9 1.9 2.3 1.8 1.9 1.9 1.9 1.9 18 Acceptances held 8.5 8.3 8.2 8.5 9.5 9.6 9.5 9.1 8.6 8.6 9.0 8.9 19 Other commercial and industrial loans 383.7 405.2 409.9 415.1 424.4 426.9 385.1 406.8 408.2 413.2 423.5 430.1 20 To U.S. addressees5 373.4 395.1 397.5 403.1 412.2 414.9 372.6 394.3 396.0 401.2 411.6 418.3 21 To non-U.S. addressees.... 10.3 10.1 12.4 12.1 12.2 12.0 12.4 12.5 12.2 12.0 12.0 11.8 22 Loans to foreign banks 13.5 12.7 12.4 13.2 12.8 13.0 14.5 13.6 12.9 13.0 12.5 12.5 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 • June 1984 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1981 1982 1983 1984 SSoouurrccee Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. Total nondeposit funds 1 Seasonally adjusted2 96.3 82.9 88.4 77.9 83.2 85.0 81.7 96.2 100.3 98.2 103.9 108.4 111.6 2 Not seasonally adjusted 98.1 84.9 90.1 78.6 86.0 86.1 82.8 99.4 102.4 99.2 105.4 109.9 112.8 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8 127.7 140.9 134.2 132.5 133.9 134.9 140.7 140.5 139.3 142.7 141.9 141.9 4 Not seasonally adjusted 113.5 129.7 142.6 134.9 135.3 135.1 136.0 143.9 142.7 140.3 144.2 143.3 143.1 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -47.7 -55.2 -59.0 -51.9 -51.5 -55.8 -47.0 -42.7 -43.6 -41.3 -36.5 -33.4 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 2.7 2.7 2.6 2.6 2.6 2.5 2.4 2.4 2.5 3.1 3.1 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -39.6 -49.2 -50.9 -45.3 -46.3 -48.5 -42.9 -39.7 -38.7 -37.5 -34.7 -33.0 8 Gross due from balances 54.9 72.2 75.8 77.4 73.6 74.7 76.4 76.5 75.2 73.0 71.9 73.5 73.3 9 Gross due to balances 32.4 32.6 26.6 26.5 28.3 28.3 27.9 33.6 35.5 34.3 34.5 38.8 40.3 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -8.1 -6.0 -8.0 -6.6 -5.1 -7.3 -4.1 -3.0 -4.9 -3.9 -1.9 -.4 11 Gross due from balances 48.1 54.7 53.9 55.2 53.5 53.5 55.4 53.1 53.6 52.7 50.6 49.5 49.0 12 Gross due to balances 52.4 46.6 47.9 47.2 47.0 48.3 48.0 49.0 50.6 47.8 46.7 47.7 48.6 Security RP borrowings 13 Seasonally adjusted' 59.0 71.0 81.4 77.3 76.1 78.1 79.9 83.3 84.8 85.5 86.9 85.5 86.9 14 Not seasonally adjusted 59.2 71.2 81.5 76.2 77.0 77.3 79.1 84.6 85.1 84.6 86.5 85.1 86.2 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 12.8 13.0 21.7 20.3 16.7 18.9 12.0 13.1 16.5 20.6 16.7 15.9 16 Not seasonally adjusted 11.1 10.8 13.2 21.8 16.4 17.9 24.7 7.5 10.8 19.6 22.3 17.5 16.5 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 347.9 287.4 285.9 284.1 282.8 278.3 280.7 283.1 284.3 283.7 289.0 292.2 18 Not seasonally adjusted 330.4 354.6 284.0 281.5 284.4 284.7 280.3 283.0 288.1 287.1 284.9 288.7 288.6 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 1,466.1 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 1,525.4 1,541.8 1,563.2 1,586.8 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 DomesticN onfinancialS tatistics • June 1984 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1.4 Billion or More on December 31, 1982, Assets and Liabilities Millions of dollars, Wednesday figures 1984 AAccccoouunntt Apr. 4' Apr. 11' Apr. 18' Apr. 25' May 2 May 9 May 16 May 23 May 30 1 Cash and balances due from depository institutions 90,760 87,341 91,151 91,256 93,873 90,176 91,476 86,033 %,556 2 Total loans, leases and securities, net 746,926 745,951 751,461 751,047 755,684 754,785 756,678 756,074 760,171 Securities 3 U.S. Treasury and government agency 79,243 79,320 79,947 78,661 77,977 75,966 75,670 75,140 76,834 4 Trading account 11,173 11,534 12,278 11,432 11,522 9,887 10,266 10,284 11,797 Investment account, by maturity 68,069 67,786 67,668 67,229 66,455 66,079 65,404 64,855 65,037 6 One year or less 18,392 18,230 18,073 18,238 18,129 17,578 17,098 16,695 17,071 7 Over one through five years 37,000 36,876 36,723 36,107 35,622 35,764 35,879 35,746 35,689 8 Over five years 12,678 12,680 12,872 12,884 12,704 12,738 12,427 12,414 12,278 9 Other securities 48,274 47,929 49,846 49,838 50,394 49,734 49,308 49,005 48,892 10 Trading account 3,946 3,569 5,458 5,492 6,090 5,467 5,055 4,592 4,462 11 Investment account 44,328 44,360 44,389 44,346 44,304 44,268 44,253 44,413 44,430 12 States and political subdivisions, by maturity 40,270 40,269 40,292 40,200 40,155 40,115 40,066 40,196 40,250 13 One year or less 4,659 4,667 4,920 4,867 4,850 4,808 4,758 4,782 4,830 14 Over one year 35,611 35,602 35,372 35,333 35,305 35,307 35,309 35,413 35,420 15 Other bonds, corporate stocks, and securities 4,058 4,092 4,097 4,146 4,149 4,153 4,186 4,218 4,180 16 Other trading account assets 2,224 2,110 2,668 2,430 2,751 2,435 1,960 1,882 1,932 Loans and leases 17 Federal funds sold' 45,683 45,961 41,631 41,797 42,471 45,551 44,750 44,484 44,042 18 To commercial banks 31,751 32,632 28,404 28,374 27,902 31,640 30,316 30,285 30,033 19 To nonbank brokers and dealers in securities 9,166 8,481 8,586 8,6% 9,739 8,827 9,206 8,630 8,385 20 To others 4,766 4,847 4,641 4,726 4,829 5,083 5,228 5,568 5,625 21 Other loans and leases, gross 586,112 585,320 591,953 593,007 596,834 595,914 599,857 600,516 603,383 22 Other loans, gross 574,642 573,863 580,491 581,531 585,289 584,374 588,300 589,017 591,806 23 Commercial and industrial 232,624 232,526 234,602 234,848 236,664 239,094 240,550 240,591 239,856 24 Bankers acceptances and commercial paper 3,471 3,273 3,309 3,229 3,547 3,748 3,629 3,640 3,907 25 All other 229,153 229,253 231,293 231,619 233,117 235,346 236,920 236,952 235,949 26 U.S. addressees 222,272 222,615 224,685 225,181 226,577 228,800 230,252 230,246 229,344 27 Non-U.S. addressees 6,880 6,638 6,608 6,439 6,540 6,545 6,668 6,705 6,605 28 Real estate loans 147,441 147,727 148,145 148,441 148,412 148,579 148,895 149,108 149,259 29 To individuals for personal expenditures 94,290 94,568 95,094 95,861 %,498 96,491 97,060 97,170 97,591 30 To depository and financial institutions 39,988 39,852 40,920 40,564 41,293 40,292 41,339 41,103 42,144 31 Commercial banks in the United States 7,947 8,167 8,494 8,743 8,870 7,976 9,305 9,264 9,800 32 Banks in foreign countries 6,998 6,798 6,%5 7,019 7,012 6,5% 6,668 6,630 6,565 33 Nonbank depository and other financial institutions. 25,043 24,886 25,461 24,802 25,412 25,720 25,366 25,208 25,779 34 For purchasing and carrying securities 12,932 12,608 13,873 14,356 13,872 12,059 12,484 13,164 14,444 35 To finance agricultural production 7,459 7,3% 7,457 7,480 7,517 7,612 7,604 7,604 7,587 36 To states and political subdivisions 21,951 21,976 22,296 22,487 22,463 22,697 22,709 22,862 23,053 37 To foreign governments and official institutions .... 4,426 4,300 4,354 4,369 4,195 4,207 4,178 4,003 3,9% 38 All other 13,528 12,910 13,750 13,124 14,374 13,342 13,481 13,410 13,875 39 Lease financing receivables 11,471 11,457 11,461 11,476 11,546 11,540 11,557 11,499 11,578 40 LESS: Unearned income 5,192 5,223 5,105 5,139 5,073 5,106 5,131 5,160 5,143 41 Loan and lease reserve 9,418 9,466 9,480 9,547 9,670 9,709 9,736 9,792 9,769 42 Other loans and leases, net 571,502 570,632 577,368 578,321 582,091 581,099 584,990 585,564 588,471 43 All other assets 143,394 142,436 138,729 135,412 140,880 141,945 142,068 136,265 134,659 44 Total assets 981,080 975,728 981,341 977,715 990,437 986,906 990,222 978,372 991,387 Deposits 45 Demand deposits 187,449 183,492 184,949 178,979 185,550 174,058 187,606 172,574 184,978 46 Individuals, partnerships, and corporations 140,982 140,648 140,632 136,913 140,884 133,822 141,986 132,751 140,815 47 States and political subdivisions 4,609 5,017 4,941 4,739 5,854 4,424 4,867 4,526 4,623 48 U.S. government 3,624 2,504 3,910 2,818 1,307 1,068 2,463 2,076 1,076 49 Depository institutions in United States 22,640 20,436 20,915 19,420 22,118 20,364 22,509 19,522 22,477 50 Banks in foreign countries 5,723 5,875 5,982 5,950 6,272 6,106 6,263 6,014 6,585 51 Foreign governments and official institutions 802 881 814 856 948 857 1,088 792 845 52 Certified and officers' checks 9,068 8,132 7,755 8,282 8,166 77,,441188 88,,443300 66,,889922 88,,555577 53 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers).. 35,260 35,190 35,698 32,985 33,236 33,211 32,984 32,408 32,673 54 Nontransaction balances 415,446 415,732 414,210 413,394 414,606 417,7% 420,440 424,671 426,900 55 Individuals, partnerships and corporations 386,6% 386,590 384,973 384,092 385,485 388,328 390,080 393,362 395,670 56 States and political subdivisions 18,111 18,260 18,255 18,504 18,392 18,726 19,149 19,742 19,530 57 U.S. government 386 391 394 382 366 354 351 365 342 58 Depository institutions in the United States 7,409 7,316 7,173 6,977 7,051 7,167 7,334 7,889 8,093 59 Foreign governments, official institutions and banks .. 2,842 3,175 3,415 3,439 3,311 3,221 3,526 3,314 3,264 60 Liabilities for borrowed money 179,284 180,916 183,176 188,526 188,767 194,477 181,260 180,249 180,297 61 Borrowings from Federal Reserve Banks 60 2,030 40 5,621 170 2,078 4,827 2,416 1,857 62 Treasury tax-and-loan notes 3,382 2,573 10,573 16,653 16,780 13,822 3,303 563 3,006 63 All other liabilities for borrowed money2 175,842 176,313 172,562 166,252 171,817 178,577 173,131 177,270 175,434 64 Other liabilities and subordinated note and debentures 97,437 93,878 97,226 97,868 101,614 100,445 101,080 101,199 99,459 65 Total liabilities 914,876 909,209 915,258 911,752 923,774 919,989 923,370 911,101 924,307 66 Residual (total assets minus total liabilities)3 66,204 66,519 66,083 65,%2 66,663 66,917 66,852 67,271 67,080 1. Includes securities purchased under agreements to resell. 3. This is not a measure of equity capital for use in capital adequacy analysis or 2. Includes federal funds purchased and securities sold under agreements to for other analytic uses, repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. 1.27 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on December 31, 1977, Assets and Liabilities A ASeries Discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A19 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1984 AAccccoouunntt Apr. 4 Apr. 11 Apr. 18 Apr. 25' May 2 May 9 May 16 May 23 May 30 1 Cash and balances due from depository institutions 21,505 21,259 20,578 23,503 20,088 21,533 22,789 19,903 22,490 2 Total loans, leases and securities, net1 158,749 154,360 155,934 158,245 159,165 159,650 160,726 162,662 164,164 Securities 33 Investment account, by maturity 10,616 10,410 10,370 10,231 10,082 10,023 10,120 10,064 10,142 6 One year or less 2,007 1,960 1,954 2,032 2,041 1,912 1,885 1,831 1,905 7 Over one through five years 7,266 7,106 7,049 6,838 6,652 6,746 7,100 7,090 7,090 8 Over five years 1,344 1,344 1,367 1,362 1,389 1,364 1,136 1,143 1,148 Q 10 II Investment account 9,306 9,407 9,814 9,798 9,788 9,731 9,690 9,669 9,699 12 States and political subdivisions, by maturity 8,498 8,581 8,978 8,952 8,940 8,884 8,873 8,881 8,968 N One year or less 1,095 1,106 1,535 1,534 1,511 1,485 1,473 1,492 1,572 14 Over one year 7,402 7,474 7,443 7,418 7,429 7,399 7,400 7,389 7,396 15 Other bonds, corporate stocks and securities 808 827 836 846 849 847 817 788 731 1166 Loans and leases 17 Federal funds sold3 14,872 11,707 10,240 12,180 12,463 14,462 13,564 15,020 14,771 18 To commercial banks 7,036 5,378 4,038 6,135 5,530 7,784 6,802 8,152 7,283 19 To nonbank brokers and dealers in securities 5,182 4,061 4,084 4,004 4,755 4,118 3,921 4,032 4,324 70 To others 2,654 2,267 2,118 2,040 2,178 2,560 2,842 2,836 3,164 71 Other loans and leases, gross 128,285 127,175 129,852 130,436 131,220 129,848 131,791 132,422 134,033 22 Other loans, gross 126,275 125,166 127,837 128,420 129,197 127,827 129,765 130,402 132,011 7.3 Commercial and industrial 61,308 61,180 61,979 61,609 62,256 62,977 63,578 63,353 63,195 24 Bankers acceptances and commercial paper 790 743 699 702 879 818 966 844 948 25 All other 60,518 60,437 61,281 60,907 61,376 62,159 62,612 62,508 62,248 76 U.S. addressees 59,149 59,223 60,131 59,809 60,206 60,965 61,292 61,129 60,937 77 Non-U.S. addressees 1,369 1,214 1,149 1,098 1,170 1,195 1,321 1,379 1,310 78 Real estate loans 21,439 21,443 21,478 21,608 21,522 21,627 21,715 21,806 21,864 29 To individuals for personal expenditures 14,236 14,255 14,253 14,486 14,635 14,647 14,714 14,559 14,607 30 To depository and financial institutions 11,902 11,479 12,054 12,131 12,375 11,486 12,238 12,262 12,732 31 Commercial banks in the United States 1,268 1,230 1,420 1,642 1,657 1,175 1,667 1,816 2,010 32 Banks in foreign countries 2,449 2,282 2,276 2,500 2,487 1,967 2,367 2,294 2,187 33 Nonbank depository and other financial institutions . 8,185 7,968 8,358 7,990 8,231 8,344 8,204 8,152 8,534 34 For purchasing and carrying securities 6,273 5,979 6,822 7,537 7,006 5,779 6,113 6,721 7,854 35 To finance agricultural production 571 563 544 542 542 552 549 531 520 36 To states and political subdivisions 6,319 6,302 6,421 6,529 6,335 6,515 6,584 6,726 6,732 37 To foreign governments and official institutions .... 605 456 452 457 428 451 516 389 406 38 All other 3,622 3,508 3,833 3,521 4,098 3,793 3,758 4,055 4,101 39 Lease financing receivables 2,010 2,010 2,015 2,016 2,023 2,022 2,027 2,020 2,022 40 LESS: Unearned income 1,499 1,509 1,502 1,529 1,471 1,492 1,509 1,530 1,522 41 Loan and lease reserve 2,832 2,832 2,840 2,871 2,917 2,922 2,931 2,984 2,960 47 Other loans and leases, net 123,954 122,835 125,510 126,036 126,831 125,434 127,351 127,908 129,551 43 All other assets4 64,986 66,199 66,714 62,795 67,752 65,922 66,542 63,750 63,430 44 Total assets 245,240 241,818 243,227 244,543 247,006 247,104 250,056 246,315 250,084 Deposits 45 Demand deposits 47,749 45,104 46,330 47,115 46,035 44,044 49,479 43,829 47,373 46 Individuals, partnerships, and corporations 31,734 30,361 31,553 32,178 31,917 30,159 32,657 30,398 32,016 47 States and political subdivisions 627 604 667 638 612 544 706 627 563 48 U.S. government 940 691 1,107 635 200 184 606 442 175 49 Depository institutions in the United States 5,150 4,421 4,779 4,230 4,466 4,689 5,451 4,170 4,554 50 Banks in foreign countries 4,391 4,532 4,521 4,622 4,913 4,767 4,918 4,752 5,194 51 Foreign governments and official institutions 594 580 623 672 740 660 842 564 618 52 Certified and officers' checks 4,312 3,914 3,080 4,139 3,188 3,040 4,298 2,875 4,252 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) .. 4,004 4,056 4,214 3,823 3,764 3,699 3,740 3,658 3,651 54 Nontransaction balances 72,122 72,019 71,963 71,357 72,072 72,684 73,780 74,593 76,050 55 Individuals, partnerships and corporations 66,191 65,810 65,411 64,820 65,547 66,208 66,514 67,159 68,522 56 States and political subdivisions 2,020 2,013 2,150 2,222 2,246 2,276 2,434 2,585 2,601 57 U.S. government 28 29 29 28 29 29 34 35 28 58 Depository institutions in the United States 2,754 2,600 2,605 2,495 2,554 2,596 2,896 3,151 3,283 59 Foreign governments, official institutions and banks .. 1,129 1,566 1,767 1,791 1,696 1,575 1,903 1,664 1,615 60 Liabilities for borrowed money 60,374 62,572 60,351 60,599 61,046 62,987 58,956 58,800 59,448 61 1,525 2,675 953 925 62 Treasury tax-and-loan notes 822 699 3,116 4,284 4,284 3,519 888 83 913 63 All other liabilities for borrowed money5 59,552 60,348 57,235 53,640 56,762 58,515 58,067 57,792 58,536 64 Other liabilities and subordinated note and debentures.. 39,441 36,420 38,843 40,246 42,428 41,856 42,294 43,313 41,629 65 Total liabilities 223,690 220,172 221,701 223,140 225,345 225,271 228,250 224,193 228,152 66 Residual (total assets minus total liabilities)6 21,550 21,647 21,525 21,404 21,660 21,832 21,806 22,122 21,932 1. Excludes trading account securities. 5. Includes federal funds purchased and securities sold under agreements to 2. Not available due to confidentiality. repurchase. 3. Includes securities purchased under agreements to resell. 6. Not a measure of equity capital for use in capital adequacy analysis or for 4. Includes trading account securities. other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 1984 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1984 AAccccoouunntt Apr. 4 Apr. 11 Apr. 18 Apr. 25' May 2 May 9 May 16 May 23 May 30 BANKS WITH ASSETS OF $1.4 BILLION OR MORE 1 Total loans and leases (gross) and investments adjusted1 777222111,,,888333888''' 777111999,,,888444000''' 777722229999,,,,111144448888'''' 777722228888,,,,666611115555 777733333333,,,,666655555555 777722229999,,,,999988883333 777733331111,,,,999922224444 777733331111,,,,444477777777 777733335555,,,,222255550000 555999222,,,000999888''' 555999000,,,444888111''' 555599996666,,,,666688886666'''' 555599997777,,,,666688886666 666600002222,,,,555533333333 666600001111,,,,888844448888 666600004444,,,,999988886666 666600005555,,,,444455550000 666600007777,,,,555599993333 111444222,,,222000555rrr 111444111,,,777888888''' 111144441111,,,,000055550000'''' 111144441111,,,,555588885555 111144442222,,,,333344446666 111144444444,,,,666699996666 111144446666,,,,777722227777 111155550000,,,,999944444444 111155552222,,,,888888884444 4 Loans sold outright to affiliates—total2 333,,,111000222 333,,,000999555 3333,,,,000099992222 3333,,,,222222220000 3333,,,,111122226666 3333,,,,111122225555 3333,,,,111122222222 2222,,,,666699991111 2222,,,,666633331111 111,,,888888444 111,,,888888666 1111,,,,888888887777 1111,,,,999999999999 1111,,,,999988883333 1111,,,,999966664444 2222,,,,000000005555 2222,,,,000077775555 2222,,,,000022228888 6 Other 1,218 1,209 1111,,,,222200005555 1111,,,,222222220000 1111,,,,111144444444 1111,,,,111166661111 1111,,,,111111116666 666611116666 666600003333 7 Nontransaction savings deposits (including MMDAs)... 156,958' 157,700' 111155556666,,,,333355553333'''' 111155554444,,,,888800002222 111155555555,,,,000088885555 111155555555,,,,444400006666 111155555555,,,,666633334444 111155555555,,,,222222224444 111155555555,,,,333333338888 BANKS IN NEW YORK CITY 8 Total loans and leases (gross) and investments adjusted1-1 .. 115544,,777766 115522,,009922 115544,,881188 115544,,886699 115566,,336655 115555,,110066 115566,,669977 115577,,220077 115599,,335522 113344,,885544 113322,,227744 113344,,663344 113344,,884400 113366,,449955 113355,,335522 113366,,888877 113377,,447744 113399,,551100 10 Time deposits in amounts of $100,000 or more 2299,,331155 2288,,660044 2288,,558888 2288,,779988 2299,,008844 2299,,773399 3300,,339977 3311,,227733 3322,,666688 1. Exclusive of loans and federal funds transactions with domestic commercial nonconsolidated nonbank affiliates of the bank, the bank's holding company (if banks. not a bank), and nonconsolidated nonbank subsidiaries of the holding company. 2. Loans sold are those sold outright to a bank's own foreign branches, 3. Excludes trading account securities. 1.30 LARGE WEEKLY REPORTING U.S. BRANCHES AND AGENCIES OF FOREIGN BANKS WITH ASSETS OF $1.4 BILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities Millions of dollars, Wednesday figures 1984 AAccccoouunntt Apr. 4 Apr. 11 Apr. 18 Apr. 25 May 2 May 9 May 16 May 23 May 30 1 Cash and due from depository institutions . 6,782 7,087 6,770 6,938 6,570 7,013 6,865 6,748 6,485 2 Total loans and securities 44,903 45,342 44,888 45,492 45,572 45,474 46,084 45,941 47,284 3 U.S. Treasury and govt, agency securities' 4,663 4,501 4,480 4,480 4,429 4,458 4,453 4,331 4,395 4 Other securities1 777 756 789 791 786 788 790 786 789 5 Federal funds sold2 2,344 3.760 3,111 4,340 4,421 4,389 4,366 4,083 4,654 6 To commercial banks in the United States 2,024 3,502 2,778 4,048 4,224 4,145 4,095 3,790 4,372 7 To others 320 259 333 292 198 244 270 293 281 8 Other loans, gross 37,118 36,325 36,509 35,881 35,936 35,839 36,476 36,741 37,447 9 Commercial and industrial 20,752 19,617 19.851 19,730 1199,,669933 2200,,009955 2200,,229977 1199,,888888 2200,,115500 10 Bankers acceptances and commercial paper 2,837 3,017 3,122 3,101 3,298 3,264 3,366 3,266 3,215 11 All other 17,915 16,600 16,728 16,629 16,396 16,831 16,931 16,622 16,935 12 U.S. addressees 16,057 14,769 15,000 14,877 14,737 15,161 15,256 14,994 15,295 13 Non-U.S. addressees 1,858 1,831 1,728 1,752 1,659 1,669 1,675 1,628 1,640 14 To financial institutions 12,984 13,070 13,114 12,606 12,614 12,408 12,797 13,380 13,678 15 Commercial banks in the United States . 10,943 10,982 10,970 10,483 10,618 10,324 10,791 11,319 11,476 16 Banks in foreign countries 1,391 1,380 1,421 1,364 1,384 1,420 1,411 1,404 1,458 17 Nonbank financial institutions 650 709 722 759 612 664 595 657 745 18 To foreign govts, and official institutions3 . 836 819 799 782 801 800 802 806 806 19 For purchasing and carrying securities .. 595 841 793 780 949 676 712 821 974 20 All other3 1,950 1.978 1,953 1,984 1,879 1,860 11,,886699 11,,884477 11,,883388 21 Other assets (claims on nonrelated parties) 13,701 13,960 14,447 14,427 14,652 15,105 15,496 16,000 15,248 22 Net due from related institutions 9,424 9,591 9,902 9,347 9,415 10,290 10,125 10,141 9,764 23 Total assets 74,810 75,981 76,008 76,205 76,209 77,882 7788,,557700 7788,,883300 7788,,778811 24 Deposits or credit balances due to other than directly related institutions 20,518 20,170 20,012 19,838 20,389 21,010 21,054 21,858 21,836 25 Credit balances 137' 163' 142' 16C 138 145 186 135 169 26 Demand deposits 1,960' 1,845' 1,925' 1,731' 1,884 11,,990077 11,,884422 11,,991166 11,,883366 27 Individuals, partnerships, and corporations 993' 831' 83(y 779' 845 771 815 810 888 28 Other 968 1,014 1,094 952 1,038 1,136 1,027 1,106 947 29 Time and savings deposits 18,420 18,161 17,945 17,946 1188,,336677 18,957 1199,,002266 1199,,880077 1199,,883311 30 Individuals, partnerships, and corporations 15,478 15,135 14,817 14,854 15,165 15,831 15,909 16,675 16,632 31 Other 2,942 3,026 3,128 3,092 3,202 3,126 33,,111177 33,,113322 33,,119999 32 Borrowings from other than directly related institutions 32,630 33,070 33.487 33,268 32,273 33,530 33,474 32,431 32,205 33 Federal funds purchased4 10,309 10,223 9,541 10,113 9,223 99,,998833 88,,551133 77,,115500 77,,550066 34 From commercial banks in the United States 7,412 7,609 6,491 6,999 6,275 6,829 5,773 4,300 4,716 35 From others 2,897 2,614 3,050 3,114 2,948 3,154 2,740 2,850 2,791 36 Other liabilities for borrowed money.... 22,321 22,847 23,946 23,155 23,050 23,547 2244,,996611 2255,,228800 2244,,669988 37 To commercial banks in the United States 19,414 19,836 20,801 19,932 19,768 20,171 21,424 21,756 21,282 38 To others 2,906 3,010 3,145 3,224 3,282 3,376 3,536 3,524 3,416 39 Other liabilities to nonrelated parties 14,169 14,740 15,062 15,119 15,452 15,684 16,067 16,471 15,832 40 Net due to related institutions 7,494 8,001 7,446 7,980 8,095 7,659 7,974 8,070 8,909 41 Total liabilities 74,810 75,981 76,008 76,205 76,209 77,882 78,570 78,830 78,781 MEMO 42 Total loans (gross) and securities adjusted5 31,936 30,859 31,140 30,961 30,730 31,005 31,198 30,832 31,436 43 Total loans (gross) adjusted5 26,496 25,602 25,871 25,690 25,515 25,758 25,956 25,715 26,253 1. Prior to Jan. 4, 1984, U.S. government agency securities were included in 4. Includes securities sold under agreements to repurchase. other securities. 5. Exclusive of loans to and federal funds sold to commercial banks in the 2. Includes securities purchased under agreements to resell. United States. 3. As of Jan. 4, 1984, loans to foreign governments and official institutions is reported as a separate item. Before that date it was included in all other loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A21 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1982 1983 1984 11997788 1199779922 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec. Mar. 1 AH holders—Individuals, partnerships, and corporations 294.6 302.2 315.5 288.9 291.7 272.0 281.9 280.3 293.7 279.3 2 Financial business 27.8 27.1 29.8 28.0 35.4 32.7 34.6 32.1 32.8 31.7 3 Nonfinancial business 152.7 157.7 162.8 154.8 150.5 139.9 146.9 150.2 161.3 150.3 4 Consumer 97.4 99.2 102.4 86.6 85.9 79.4 80.3 77.9 78.5 78.1 5 Foreign 2.7 3.1 3.3 2.9 3.0 3.1 3.0 2.9 3.3 3.3 6 Other 14.1 15.1 17.2 16.7 17.0 16.9 17.2 17.1 17.8 15.9 Weekly reporting banks 1982 1983 1984 11997788 1199779933 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec. Mar. 7 All holders—Individuals, partnerships, and corporations 147.0 139.3 147.4 137.5 144.2 133.0 139.6 136.3 146.2 139.2 8 Financial business 19.8 20.1 21.8 21.0 26.7 24.3 26.2 23.6 24.2 23.5 9 Nonfinancial business 79.0 74.1 78.3 75.2 74.3 68.9 72.8 72.9 79.8 76.4 10 Consumer 38.2 34.3 35.6 30.4 31.9 28.7 28.5 28.1 29.7 28.4 11 Foreign 2.5 3.0 3.1 2.8 2.9 3.0 2.8 2.8 3.1 3.2 12 Other 7.5 7.8 8.6 8.0 8.4 8.1 9.3 8.9 9.3 7.7 1. Figures include cash items in process of collection. Estimates of gross 3. After the end of 1978 the large weekly reporting bank panel was changed to deposits are based on reports supplied by a sample of commercial banks. Types of 170 large commercial banks, each of which had total assets in domestic offices depositors in each category are described in the June 1971 BULLETIN, p. 466. exceeding $750 million as of Dec. 31, 1977. Beginning in March 1979, demand 2. Beginning with the March 1979 survey, the demand deposit ownership deposit ownership estimates for these large banks are constructed quarterly on the survey sample was reduced to 232 banks from 349 banks, and the estimation basis of 97 sample banks and are not comparable with earlier data. The following procedure was modified slightly. To aid in comparing estimates based on the old estimates in billions of dollars for December 1978 have been constructed for the and new reporting sample, the following estimates in billions of dollars for new large-bank panel; financial business, 18.2; nonfinancial business, 67.2; December 1978 have been constructed using the new smaller sample; financial consumer, 32.8; foreign, 2.5; other, 6.8. business, 27.0; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic NonfinancialS tatistics • June 1984 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 1 e 9 c 82 .2 Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,829 166,670 180,606 185,852 184,419 190,808 200,631 209,535 Financial companies3 Dealer-placed paper4 2 Total 12,181 17,359 19,599 30,333 34,634 41,459 41,688 39,884 4411,,336633 4433,,116677 4466,,009911 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 2,341 2,441 2,087 11,,776655 11,,776677 1,865 Directly placed paper5 4 Total 51,647 64,757 67,854 81,660 84,130 93,878 96,548 98,495 110022,,660066 110077,,442211 110099,,337766 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 35,001 35,566 37,636 36,958 39,617 41,881 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,906 45,269 47,616 46,040 46,839 50,043 54,068 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 77,919 78,309 73,450 74,367 73,221 78,457 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 10,894 9,355 9,546 9,237 8,734 11,160 9 Own bills 7,653 8,327 8,963 9,743 9,471 9,558 8,125 7,814 7,897 7,040 9,029 10 Bills bought 927 1,538 1,601 1,115 1,439 1,337 1,230 1,732 1,340 1,694 22,,113311 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 0 418 0 0 0 0 12 Foreign correspondents 664 1,382 1,791 1,442 949 573 729 729 777 896 834 13 Others 24,456 33,370 41,614 56,731 66,204 66,452 68,225 63,174 64,353 63,592 66,464 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 14,906 15,649 15,028 15,495 15,107 16,579 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 17,209 16,880 16,159 15,818 15,572 17,025 16 All other 17,541 25,411 30,257 39,060 45,531 45,806 45,781 42,262 43,055 42,542 44,853 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 Rate Effective Date Average rate 16.00 1982—Oct. 14 12.00 1982—Jan 15.75 1983—Mar. 15.75 Nov.22 11.50 Feb 16.56 Apr. Mar 16.50 May 16.50 June 17.00 1983—Jan. 11 11.00 16.50 July 16.50 Feb.28 10.50 June 16.50 Aug. 16.00 Aug. 8 11.00 July 16.26 Sept. 15.50 Aug 14.39 Oct. 15.00 1984—Mar. 19 11.50 Sept 13.50 Nov. 14.50 Apr. 5 12.00 Oct 12.52 Dec. 14.00 May 8 12.50 Nov 11.85 13.50 Dec 11.50 1984—Jan. 13.00 Feb. 1983—Jan 11.16 Mar. Feb Apr. May Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Business Lending A23 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 6-10, 1984 Size of loan (in thousands of dollars) All Item sizes 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 38,330,316 991,513 549,652 709,274 2,247,241 972,939 32,859,696 2 Number of loans 171,352 125,356 16,856 10,749 12,402 1,483 4,507 3 Weighted-average maturity (months) 1.1 4.6 4.2 3.5 4.2 3.1 .7 4 With fixed rates .7 4.0 3.8 2.0 2.5 1.5 .5 5 With floating rates 2.2 6.1 4.9 5.1 5.2 4.1 1.3 6 Weighted-average interest rate (percent per annum) .. 11.06 14.13 13.45 13.33 12.66 11.99 10.75 7 Interquartile range1 10.45-11.24 13.24-14.93 12.55-14.20 12.13-14.54 11.57-13.80 11.46-12.68 10.40-10.89 8 With fixed rates 10.93 14.44 13.70 13.89 13.03 11.45 10.68 9 With floating rates 11.35 13.53 13.13 12.76 12.49 12.20 10.91 Percentage of amount of loans 10 With floating rate 32.6 33.9 44.7 49.6 6699..33 7722..44 2288..33 11 Made under commitment 63.7 33.8 37.8 44.5 58.7 69.8 65.6 12 With no stated maturity 10.4 11.6 12.5 27.4 22.7 35.4 8.4 13 With one-day maturity 40.3 .1 .1 .2 .6 2.2 46.9 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 3,705,613 473,173 351.506 206,780 2,674,153 15 Number of loans 29,580 26,742 1,980 309 548 16 Weighted-average maturity (months) 48.0 40.4 39.6 42.2 50.9 17 With fixed rates 48.5 36.5 37.0 38.2 57.0 18 With floating rates 47.9 43.7 40.9 43.2 49.5 19 Weighted-average interest rate (percent per annum) .. 11.92 14.21 12.13 12.18 11.46 20 Interquartile range1 10.86-12.69 13.00-14.93 11.46-13.10 11.57-12.96 10.65-12.28 21 With fixed rates 12.33 15.24 11.29 12.15 11.33 22 With floating rates 11.78 13.31 12.53 12.18 11.49 Percentage of amount of loans 23 With floating rate 7766..00 5533..55 6688..11 80.5 8800..77 24 Made under commitment 73.9 31.1 6699..33 81.1 81.5 11--2244 2255--4499 5500--9999 CCOONNSSTTRRUUCCTTIIOONN AANNDD LLAANNDD DDEEVVEELLOOPPMMEENNTT LLOOAANNSS 25 Amount of loans (thousands of dollars) 2,278,565 189,847 358,574 249,161 909,700 571,282 26 Number of loans 43,012 23,372 10,406 3,977 4,978 279 27 Weighted-average maturity (months) 8.9 5.3 9.9 5.8 11.2 7.2 28 With fixed rates 4.3 5.4 7.6 5.0 3.2 2.2 29 With floating rates 13.5 5.1 12.0 7.5 20.1 9.3 30 Weighted-average interest rate (percent per annum) .. 13.34 14.03 13.38 13.80 13.77 12.22 31 Interquartile range1 12.00-14.20 13.27-14.45 12.37-14.50 12.92-14.76 12.00-14.21 11.57-12.69 32 With fixed rates 14.13 14.12 13.75 14.29 15.05 11.74 33 With floating rates 12.60 13.79 13.05 12.73 12.42 12.41 Percentage of amount of loans 34 With floating rate 51.3 26.7 53.6 3311..55 4488..55 7711..33 35 Secured by real estate 91.3 80.8 99.5 96.2 97.8 77.1 36 Made under commitment 61.6 36.7 76.5 65.2 46.1 83.8 37 With no stated maturity 49.9 47.9 44.0 51.9 73.4 15.9 38 With one-day maturity 6.0 10.6 .5 18.8 4.3 5.3 Type of construction 39 1- to 4-family 44.1 41.6 55.5 29.4 22.3 78.8 40 Multifamily 2.3 2.7 1.5 1.5 2.8 2.2 41 Nonresidential .0 .0 .0 .0 .0 .0 AAllll ssiizzeess 1-9 1100--2244 25-49 5500--9999 100-249 250 and over LLOOAANNSS TTOO FFAARRMMEERRSS 42 Amount of loans (thousands of dollars) 1,352,194 1:58,661 161,008 194,352 199,351 216,433 422,389 43 Number of loans 64,008 42,006 11,116 5,719 3,212 1,516 438 44 Weighted-average maturity (months) 8.5 8.6 9.5 8.9 8.6 10.6 6.7 45 Weighted-average interest rate (percent per annum) .. 13.50 14.12 14.22 14.12 13.90 14.00 12.27 46 Interquartile range1 12.63-14.45 13.50-14.75 13.66-14.76 13.51-14.93 13.24-14.38 13.08-14.45 11.53-12.75 By purpose of loan 4 4 8 7 O Fe th ed er e r l i l v i e v s e t s o t c o k c k 1 1122 3 .. . 66 6 88 2 11 1 44 3 .. . 22 9 99 2 1 1144 4 .. . 22 0 44 6 11 1 33 3 .. . 66 8 11 6 1133(..77 2 44) 1133(..77211) 1 1 1 3 11 . .. 0 99 4 66 49 Other current operating expenses 13.81 14.09 14.19 14(.1 2 5) 13(.9 2 1) 14 ( .0 2 5 ) 11(.9 2 4) 50 Farm machinery and equipment 13.86 14.05 14.04 51 Other 13.47 14.42 14.56 14.42 14.05 14.13 12.69 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

A24 Domestic Nonfinancial Statistics • June 1984 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted. 1984 1984, week ending IInnssttrruummeenntt 11998811 11998822 1983 Feb. Mar. Apr. May May 4 May 11 May 18 May 25 June 1 MONEY MARKET RATES 1 Federal funds1-2 16.38 12.26 9.09 9.59 9.91 10.29 10.32 10.70 10.46 10.52 9.75 10.30 2 Discount window borrowing1-2 3 13.42 11.02 8.50 8.50 8.50 8.87 9.00 9.00 9.00 9.00 9.00 9.00 Commercial paper4-5 3 1-month 15.69 11.83 8.87 9.35 9.81 10.17 10.38 10.28 10.52 10.54 10.19 10.32 4 3-month 15.32 11.89 8.88 9.32 9.83 10.18 10.65 10.33 10.73 10.84 10.57 10.72 5 6-month 14.76 11.89 8.89 9.31 9.86 10.22 10.87 10.37 10.86 11.05 10.96 11.08 Finance paper, directly placed4-5 6 1-month 15.30 11.64 8.80 9.34 9.76 10.08 10.26 1100..2211 1100..4433 1100..2255 1100..1122 1100..2288 7 3-month 14.08 11.23 8.70 9.14 9.54 9.86 10.16 9.95 10.13 10.23 10.21 10.26 8 6-month 13.73 11.20 8.69 9.06 9.38 9.76 10.03 9.86 10.00 10.09 10.10 10.11 Bankers acceptances5-6 9 3-month 15.32 11.89 8.90 9.38 9.88 10.22 10.84 10.38 10.93 1111..0022 10.89 1100..8888 10 6-month 14.66 11.83 8.91 9.35 9.91 10.26 11.06 10.43 11.00 11.22 11.25 11.35 Certificates of deposit, secondary market7 11 1-month 15.91 12.04 8.96 9.43 9.91 10.24 10.62 10.39 10.77 1100..8822 1100..5500 1100..5566 12 3-month 15.91 12.27 9.07 9.54 10.08 10.41 11.11 10.60 11.17 11.32 11.14 11.31 13 6-month 15.77 12.57 9.27 9.73 10.37 10.73 11.64 10.96 11.59 11.84 11.82 11.99 14 Eurodollar deposits, 3-month8 16.79 13.12 9.56 9.91 10.40 10.83 11.53 10.99 11.59 11.74 11.59 11.67 U.S. Treasury bills5 Secondary market9 15 3-month 14.03 10.61 8.61 9.09 9.52 9.69 9.83 9.73 9.97 9.88 9.79 9.76 16 6-month 13.80 11.07 8.73 9.18 9.66 9.84 10.31 9.99 10.28 10.28 10.42 10.56 17 1-year 13.14 11.07 8.80 9.20 9.67 9.95 10.57 10.18 10.46 10.59 10.73 10.94 Auction average10 18 3-month 14.029 10.686 8.63 9.03 9.44 9.69 9.90 9.68 9.99 10.07 99..9955 99..8833 19 6-month 13.776 11.084 8.75 9.13 9.58 9.83 10.31 9.88 10.27 10.40 10.38 10.62 1133..115599 1111..009999 8.86 99..2244 99..6688 99..8866 1100..6644 10.64 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 14.78 12.27 9.57 10.04 10.59 10.90 11.66 11.19 11.52 11.68 11.84 12.10 22 2-year 14.56 12.80 10.21 10.79 11.31 11.69 12.47 11.96 12.33 12.50 12.65 12.94 23 2-1/2-year13 12.20 12.65 13.05 24 3-year 14.44 12.92 10.45 11.05 11.59 11.98 12.75 12.26 12.59 12.78 12.93 13.25 25 5-year 14.24 13.01 10.80 11.54 12.02 12.37 13.17 12.65 12.99 13.24 13.35 13.69 26 7-year 14.06 13.06 11.02 11.75 12.25 12.56 13.34 12.82 13.17 13.41 13.50 13.82 27 10-year 13.91 13.00 11.10 11.84 12.32 12.63 13.41 12.89 13.23 13.49 13.59 13.86 28 20-year 13.72 12.92 11.34 12.00 12.45 12.65 13.43 12.94 13.28 13.52 13.60 13.79 29 30-vear 13.44 12.76 11.18 11.95 12.38 12.65 13.43 12.93 13.27 13.52 13.60 13.80 Composite14 30 Over 10 years (long-term) 12.87 12.23 10.84 11.44 11.90 12.17 12.89 12.43 12.73 12.98 13.04 1133..2255 State and local notes and bonds Moody's series15 31 Aaa 10.43 10.88 8.80 9.04 9.41 9.54 9.98 9.60 9.80 10.00 1100..2200 1100..3300 32 Baa 11.76 12.48 10.17 9.94 10.22 10.30 10.55 10.30 10.35 10.40 10.60 11.10 33 Bond Buyer series16 11.33 11.66 9.51 9.64 9.94 9.96 10.49 9.99 10.19 10.36 10.83 11.07 Corporate bonds Seasoned issues17 34 All industries 15.06 14.94 12.78 12.88 13.33 13.59 14.13 13.79 13.97 14.19 14.29 14.44 14.17 13.79 12.04 12.08 12.57 12.81 13.28 13.00 13.15 13.33 13.42 13.56 36 Aa 14.75 14.41 12.42 12.70 13.22 13.48 14.10 13.72 13.92 14.21 14.27 14.44 37 A 15.29 15.43 13.10 13.11 13.54 13.77 14.37 13.97 14.19 14.48 14.54 14.73 38 Baa 16.04 16.11 13.55 13.59 13.99 14.31 14.74 14.46 14.61 14.75 14.91 15.04 39 A-rated, recently-offered utility bond18 16.63 15.49 12.73 13.05 13.63 13.% 14.79 14.40 14.77 1144..8877 1155..1155 1155..0022 MEMO: Dividend/price ratio19 40 Preferred stocks 12.36 12.53 11.02 11.16 11.39 11.66 11.72 ^ 11.58 11.68 11.62 1111..7777 11.97 41 Common stocks 5.20 5.81 4.40 4.59 4.63 4.64 A.12P 4.54 4.59 4.69 4.83 4.93 1. Weekly and monthly figures are averages of all calendar days, where the places. Thus, average issuing rates in bill auctions will be reported using two rate for a weekend or holiday is taken to be the rate prevailing on the preceding rather than three decimal places. business day. The daily rate is the average of the rates on a given day weighted by 11. Yields are based on closing bid prices quoted by at least five dealers. the volume of transactions at these rates. 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields 2. Weekly figures are averages for statement week ending Wednesday. are read from a yield curve at fixed maturities. Based on only recently issued, 3. Rate for the Federal Reserve Bank of New York. actively traded securities. 4. Unweighted average of offering rates quoted by at least five dealers (in the 13. Each biweekly figure is the average of five business days ending on the case of commercial paper), or finance companies (in the case of finance paper). Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate Before November 1979, maturities for data shown are 30-59 days, 90-119 days, determined the maximum interest rate payable in the following two-week period and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150- on 2-'/2-year small saver certificates. (See table 1.16.) 179 days for finance paper. 14. Averages (to maturity or call) for all outstanding bonds neither due nor 5. Yields are quoted on a bank-discount basis, rather than an investment yield callable in less than 10 years, including several very low yielding "flower" bonds. basis (which would give a higher figure). 15. General obligations based on Thursday figures; Moody's Investors Service. 6. Dealer closing offered rates for top-rated banks. Most representative rate 16. General obligations only, with 20 years to maturity, issued by 20 state and (which may be, but need not be, the average of the rates quoted by the dealers). local governmental units of mixed quality. Based on figures for Thursday. 7. Unweighted average of offered rates quoted by at least five dealers early in 17. Daily figures from Moody's Investors Service. Based on yields to maturity the day. on selected long-term bonds. 8. Calendar week average. For indication purposes only. 18. Compilation of the Federal Reserve. This series is an estimate of the yield 9. Unweighted average of closing bid rates quoted by at least five dealers. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 10. Rates are recorded in the week in which bills are issued. Beginning with the call protection. Weekly data are based on Friday quotations. Treasury bill auction held on Apr. 18, 1983, bidders were required to state the 19. Standard and Poor's corporate series. Preferred stock ratio based on a percentage yield (on a bank discount basis) that they would accept to two decimal sample of ten issues: four public utilities, four industrials, one financial, and one 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 A25 1.36 STOCK MARKET Selected Statistics 1983 1984 IInnddiiccaattoorr 11998811 11998822 11998833 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 74.02 68.93 92.63 96.70 96.78 95.36 94.92 96.16 90.60 90.66 90.67 90.07 2 Industrial 85.44 78.18 107.45 112.76 112.87 110.77 110.60 112.16 105.44 105.92 106.56 105.94 3 Transportation 72.61 60.41 89.36 94.56 95.41 97.68 98.79 97.98 86.33 86.10 83.61 81.62 4 Utility 38.90 39.75 47.00 48.16 48.73 48.50 47.00 47.43 45.67 44.83 43.86 44.22 5 Finance 73.52 71.99 95.34 97.00 94.79 94.48 94.25 95.79 89.95 89.50 88.22 85.06 6 Standard & Poor's Corporation (1941-43 = 10)' ... 128.05 119.71 160.41 167.16 167.65 165.23 164.36 166.39 157.70 157.44 157.60 156.55 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 171.79 141.31 216.48 234.36 223.76 218.42 221.31 224.83 207.95 210.09 207.66 206.39 Volume of trading (thousands of shares) 8 New York Stock Exchange 46,967 64,617 85,418 82,866 85,445 86,405 88,041 105,518 96,641 84,328 85,874 88,170 9 American Stock Exchange 5,346 5,283 8,215 6,629 7,751 6,160 6,939 7,167 6,431 5,382 5,863 5,935 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 14,411 13,325 23,000 20,124 21,030 22,075 23,000 23,132 22,557 22,668 22,830 11 Margin stock 14,150 12,980 22,720 19,760 20,690 21,790 22,720 22,870 22,330 22,460 t 1 1 2 3 C Su o b n s v c e r r i t p ib ti l o e n b i o s n su d e s s 259 2 344 1 279 1 363 1 339 1 285 1 279 1 261 1 226 1 208 n.a. n a. 1 Free credit balances at brokers4 1 14 Margin-account 3,515 5,735 6,620 6,550 6,630 6,512 6,620 6,510' 6,420 6,520 6,450 15 Cash-account 7,150 8,390 8,430 7,930 7,695 7,599 8,430 8,230' 8,420 8,265 7,910 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 37.0 21.0 41.0 24.0 35.0 48.0 41.0 43.0 48.0 46.0 47.0 18 40-49 24.0 24.0 22.0 27.0 24.0 22.0 22.0 21.0 20.0 20.0 20.0 19 50-59 17.0 24.0 16.0 21.0 17.0 17.0 16.0 15.0 13.0 14.0 13.0 n a. 20 60-69 10.0 14.0 9.0 12.0 10.0 10.0 9.0 9.0 8.0 9.0 8.0 1 21 70-79 6.0 9.0 6.0 9.0 7.0 7.0 6.0 6.0 6.0 6.0 6.0 1 22 80 or more 6.0 8.0 6.0 7.0 7.0 6.0 6.0 6.0 5.0 5.0 6.0 T Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 25,870 35,598 58,329 51,211 54,029 57,490 58,329 62,670 63,411 65,855 66,340 F Distribution by equity status (percent) I 24 Net credit status 58.0 62.0 63.0 64.0 63.0 63.0 63.0 61.0 59.0 61.0 60.0 n.a. Debt status, equity of 1 25 60 percent or more 31.0 29.0 28.0 29.0 28.0 29.0 28.0 29.0 29.0 28.0 29.0 I 26 Less than 60 percent 11.0 9.0 9.0 7.0 9.0 8.0 9.0 10.0 12.0 11.0 11.0 T Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 8C 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 5. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers based on loan values of 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. Beginning July 1983, under the revised Regulation T, margin credit at 7. Regulations G, T, and U of the Federal Reserve Board of Governors, broker-dealers includes credit extended against stocks, convertible bonds, stocks prescribed in accordance with the Securities Exchange Act of 1934, limit the acquired through exercise of subscription rights, corporate bonds, and govern- amount of credit to purchase and carry margin stocks that may be extended on ment securities. Separate reporting of data for margin stocks, convertible bonds, securities as collateral by prescribing a maximum loan value, which is a specified and subscription issues was discontinued in April 1984, and margin credit at percentage of the market value of the collateral at the time the credit is extended. broker-dealers became the total that is distributed by equity class and shown on Margin requirements are the difference between the market value (100 percent) lines 17-22. and the maximum loan value. The term "margin stocks" is defined in the 4. 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

A26 Domestic Nonfinancial Statistics • June 1984 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1983 1984 AAccccoouunntt 11998811 11998822 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.? Savings and loan associations 1 Assets 664,167 707,646 733,074 741,416 746,998 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,281 2 Mortgages 518,547 483,614 474,510 479,322 483,178 482,305 485,366 489,720 493,432 494,682 497,987 502,143 509,128 3 Cash and investment securities1 63,123 85,438 102,063 102,546 99,812 100,243 101,553 101,553 103,395 101,883 103,917 108,565 105,927 4 Other 82,497 138,594 156,501 159,548 164,008 165,943 170,034 172,259 174,878 176,158 178,203 185,387 191,226 5 Liabilities and net worth 664,167 707,646 733,074 741,416 746,998 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,281 6 Savings capital 525,061 567,961 605,282 610,826 615,369 618,002 622,577 625,013 634,076 639,694 644,588 656,252 660,155 7 Borrowed money 88,782 97,850 84,342 84,694 84,267 85,976 87,367 89,235 91,443 86,322 86,526 93,321 97,434 8 FHLBB 62,794 63,861 54,234 53,579 52,182 52,179 52,678 51,735 52,626 50,880 50,465 50,663 51,940 9 Other 25,988 33,989 30,108 31,115 32,085 33,797 34,689 37,500 38,817 35,442 36,061 42,658 45,494 10 Loans in process2 6,385 9,934 15,998 17,094 17,967 18,812 19,209 19,728 21,117 21,498 21,939 22,929 23,778 11 Other 15,544 15,602 15,140 17,527 18,615 15,496 17,458 19,179 15,275 15,777 17,520 14,938 16,869 12 Net worth3 28,395 26,233 28,310 28,369 28,626 29,017 29,551 29,938 30,911 30,930 31,473 31,584 31,823 13 MEMO: Mortgage loan commitments outstanding4 15,225 18,054 30,691 31,733 32,415 32,483 32,798 34,780 32,996 39,813 36,150 39,813 41,642 Mutual savings banks5 14 Assets 175,728 174,197 181,975 182,822 183,612 186,041 187,385 189,149 193,535 194,217 195,168 196,944 Loans 15 Mortgage 99,997 94,091 94,000 93,998 93,941 94,831 94,863 95,600 97,356 97,704 97,895 98,383 16 Other 14,753 16,957 17,438 18,134 17,929 17,830 19,589 19,675 19,129 20,469 21,694 21,971 Securities 17 U.S. government6 9,810 9,743 13,572 13,931 14,484 14,794 14,634 15,092 15,360 15,167 15,667 15,773 18 State and local government 2,288 2,470 2,257 2,248 2,247 2,244 2,195 2,195 2,177 2,180 2,054 2,071 19 Corporate and other1 37,791 36,161 40,206 40,667 41,045 41,889 42,092 42,629 43,580 43,541 43,439 43,465 20 Cash 5,442 6,919 6,224 5,322 5,168 5,560 4,993 4,983 6,263 4,783 4,580 5,024 21 Other assets 5,649 7,855 8,276 8,522 8,799 8,893 9,019 8,975 9,670 10,373 9,839 10,257 22 Liabilities 175,728 174,197 181,975 182,822 183,612 186,041 187,385 189,149 193,535 194,217 195,168 196,944 n a. 23 Deposits 155,110 155,196 163,990 164,848 165,087 165,887 168,064 169,356 172,665 173,637 174,349 175,909 24 Regular8 153,003 152,777 161,573 162,271 162,600 162,998 165,575 167,006 170,135 171,099 171,935 173,250 25 Ordinary savings 49,425 46,862 40,451 39,983 39,360 39,768 38,485 38,448 38,554 37,999 37,642 37,853 26 Time 103,578 96,369 84,705 85,445 86,446 85,603 91,795 93,073 95,129 96,520 96,983 97,230 27 Other 2,108 2,419 2,417 2,577 2,487 2,889 2,489 2,350 2,530 2,538 2,414 2,659 28 Other liabilities 10,632 8,336 7,754 7,596 7,884 9,475 8,779 9,185 10,154 9,932 9,932 10,280 29 General reserve accounts 9,986 9,235 9,575 9,684 9,932 9,879 10,015 10,210 10,368 10,334 10,566 10,384 30 MEMO: Mortgage loan commitments outstanding9 1,293 1,285 1,884 1,969 2,046 2,023 2,210 2,418 2,387 n.a. n.a. n.a. Life insurance companies 31 Assets 525,803 588,163 628,224 633,569 638,826 644,295 647,149 652,904 658,979 663,013 664,677 Securities 32 Government .... 25,209 36,499 43,348 44,751 45,700 46,109 47,767 47,170 49,417 49,690 49,711 33 United States10 8,167 16,529 21,141 22,228 22,817 23,134 24,380 24,232 26,364 26,659 27,285 34 State and local 7,151 8,664 10,355 10,504 10,695 10,739 10,791 10,686 10,796 10,673 10,048 35 Foreign11 9,891 11,306 11,852 12,019 12,188 12,236 12,596 12,252 12,257 12,358 12,378 36 Business 255,769 287,126 313,510 316,934 318,584 321,568 320,964 325,787 325,015 329,697 330,303 n a. n a. 37 Bonds 208,099 231,406 248,248 252,397 253,977 256,131 256,332 260,432 259,591 264,430 266,234 38 Stocks 47,670 55,720 65,262 64,537 64,607 65,437 64,632 65,355 65,424 65,267 64,069 39 Mortgages 137,747 141,989 144,725 145,086 146,400 147,356 148,256 148,947 151,599 151,878 151,630 40 Real estate 18,278 20,264 21,629 21,690 21,749 21,903 22,141 22,278 22,683 22,700 23,032 41 Policy loans 48,706 52,961 53,914 53,972 54,063 54,165 54,255 54,362 54,518 54,559 54,631 42 Other assets 40,094 48,571 51,098 51,136 52,330 53,194 53,765 54,360 55,747 54,474 55,370 Credit unions12 43 Total assets/liabilities and capital. 60,611 69,585 78,362 78,846 79,241 80,189 80,419 81,094 81,961 82,287 83,779 86,498 87,204 44 Federal 39,181 45,493 51,430 51,859 52,261 53,086 53,297 53,801 54,482 54,770 55,753 57,569 58,127 45 State 21,430 24,092 26,932 26,987 26,980 27,103 27,122 27,293 27,479 27,517 28,026 28,929 29,077 46 Loans outstanding 42,333 43,232 45,006 45,647 46,940 47,829 48,454 49,240 50,083 50,477 51,386 52,353 53,355 47 Federal 27,096 27,948 29,175 29,672 30,582 31,212 31,691 32,304 32,930 33,270 33,878 34,510 35,286 48 State 15,237 15,284 15,831 15,975 16,358 16,617 16,763 16,936 17,153 17,207 17,508 17,843 18,069 49 Savings 54,152 62,990 71,610 72,232 72,214 73,280 73,661 74,051 74,739 75,373 76,423 79,150 80,032 50 Federal (shares) 35,250 41,352 47,145 47,713 47,847 48,709 49,044 49,400 49,889 50,438 51,218 52,905 53,587 51 State (shares and deposits). 18,902 21,638 24,465 24,519 24,367 24,571 24,617 24,651 24,850 24,935 25,205 26,245 26,445 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.37 Continued 1983 1984 AAccccoouunntt 11998811 11998822 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P FSLIC-insured federal savings banks 52 Assets 6,859 39,660 41,763 46,191 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,416 53 Mortgages 3,353 25,236 26,494 28,086 34,814 35,637 37,166 38,698 41,754 43,371 44,708 45,864 54 Cash and investment securities' 6,675 6,890 7,514 9,245 9,587 9,653 10,436 11,243 11,662 12,552 12,824 55 Other 7,749 8,379 10,591 13,437 14,198 14,898 15,835 16,838 17,110 18,295 18,728 56 Liabilities and net worth 6,859 39,660 41,763 46,191 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,416 57 Savings and capital 5,877 32,446 34,108 37,284 47,058 48,544 50,384 53,227 57,195 59,107 61,433 62,481 58 Borrowed money 4,831 5,008 5,445 6,598 6,775 6,981 7,477 8,048 8,088 9,213 9,767 59 FHLBB 3,094 3,131 3,572 4,192 4,323 4,381 4,640 4,751 4,884 5,232 5,492 60 Other 1,737 1,877 1,873 2,406 2,452 2,600 2,837 3,297 3,204 3,981 4,275 61 Other 755 919 1,142 1,089 1,293 1,428 1,157 1,347 1,545 1,360 1,544 62 Net worth3 1,628 1,728 2,320 2,751 2,810 2,924 3,108 3,245 3,403 3,549 3,624 MEMO 63 Loans in process2 791 828 934 1,120 1,181 1,222 1,264 1,387 1,531 1,669 1,714 64 Mortgage loan committments outstanding4 1,438 1,743 1,774 2,130 2,064 2,230 2,151 2,974 2,704 3,253 3,722 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. 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 FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1982 1983 1984 11998811 11998822 11998833 HI H2 HI Feb. Mar. Apr. U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 47,886 44,464 80,180 2 Outlays' 657,204 728,375 795,917 348,678 390,846 396,477 68,267 73,020 68,687 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -20,381 -28,556 11,493 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 557 -2,827 5,033 5 Federal funds2-3 -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -20,938 -25,728 6,459 Off-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -8 -1,431 -920 7 Other3-4 -236 -3,190 -1,953 227 -2,267 -528 -198 -296 262 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 -20,588 -30,282 10,833 Source of financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 18,172 7,568 17,038 10 Cash and monetary assets (decrease, or increase (-))4 -1,878 -11,911 -9,889 -408 -9,057 -9,664 8,722 9,415 -24,772 11 Other5 1,485 4,858 5,176 -7,405 1,146 3,222 -6,306 13,299 -3,099 MEMO 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 23,758 14,054 38,204 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 3,226 3,684 16,729 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 20,531 10,369 21,474 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 gain/loss 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. drawing rights; loans to International Monetary Fund; and other cash and Digitized form FonRetAarSy EasRse ts. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 DomesticN onfinancialS tatistics • June 1984 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyy 111 eee 999888 aaa 111 rrr yyy 111999 eeeaaa 888 rrr 222 yyy 111999 eeeaaa 888 rrr 333 1982 1983 1984 HI H2 HI Feb. Mar. Apr. RECEIPTS 1 All sources 599,272 617,766 600,563 322,478 286,338 306,331 47,886 44,464 80,180 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 22,190 12,895 39,192 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 23,523 26,877 22,321 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 4 9 5 5 N on withheld 76,844 84,691 83,586 66,174 20,040 63,014 1,501 2,776 31,993 6 Refunds 47,299 54,498 60,692 49,217 5,938 5544,,002244 22,,883388 1166,,776666 1155,,112277 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 1,892 9,441 11,786 8 Refunds 12,5% 16,784 24,758 8,028 1111,,446677 1133,,880099 11,,883333 11,,447766 22,,669911 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 9944,,227788 110,521 1199,,997722 1177,,770022 2266,,003366 10 Payroll employment taxes and contributions1 156,932 117722,,774444 179,010 88,795 8855,,006633 9900,,991122 1166,,777744 1166,,770044 1188,,553322 11 Self-employment taxes and contributions2 6,041 7,941 6,756 7,357 177 6,427 523 433 4,637 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 2,308 191 2,501 13 Other net receipts3 3,984 4,212 4,436 2,119 2,181 2,1% 369 373 366 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 2,693 2,870 3,042 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 839 974 937 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 570 523 505 17 Miscellaneous receipts4 13,790 16,161 15,594 7,984 7,891 7,751 1,613 1,535 1,374 OUTLAYS 18 A1I types 657,204 728,424 795,917 348,683 390,847 396,477 68,267 73,020 68,687 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 18,515 19,516 18,711 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 780 1,180 973 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 721 611 685 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 34 265 57 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 790 861 923 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 1,737 1,315 1,364 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 -648 224 -22 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 1,517 1,555 1,716 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 524 514 481 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,305 2,172 2,210 29 Health 26,858 27,435 28,655] 2,540 2,729 2,577 30 Social security and medicare 178,733 202,531 223,311> 150,001s 117722,,885522 184,207 19,164 20,192 19,405 31 Income security 85,514 92,084 106,21 lj 8,585 9,791 8,677 32 Veterans benefits and services 22,988 23,955 24,845 112,782 13,241 11,334 2,108 3,293 891 33 Administration of justice 4,6% 4,671 5,014 2,334 2,373 2,522 505 435 476 34 General government 4,614 4,726 4,991 2,400 2,322 2,434 495 585 265 35 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 201 86 1,219 36 Net interest6 68,726 84,697 89,774 41,883 44,948 42,358 9,801 8,592 9,211 37 Undistributed offsetting receipts7 -16,509 -13,270 -21,424 -6,490 -8,333 -8,885 -1,407 -824 -1,130 1. Old-age, disability, and hospital insurance, and railroad retirement accounts. function. Before February 1984, these outlays were included in the income 2. Old-age, disability, and hospital insurance. security and health functions. 3. Federal employee retirement contributions and civil service retirement and 6. Net interest function includes interest received by trust funds. disability fund. 7. Consists of rents and royalties on the outer continental shelf and U.S. 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous government contributions for employee retirement. receipts. 5. In accordance with the Social Security Amendments Act of 1983, the SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Treasury now provides social security and medicare outlays as a separate 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 A29 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1982 1983 1984 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 1,066.4 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 1415.3 1,468.3 2 Public debt securities 1,061.3 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 1,410.7 1,463.7 3 Held by public 858.9 867.9 925.6 987.7 1,043.3 1,090.3 1,138.2 1174.4 1,223.9 4 Held by agencies 202.4 211.7 216.4 209.4 201.2 229.3 239.0 236.3 239.8 5 Agency securities 5.1 5.0 5.0 4.8 4.8 4.7 4.7 4.6 4.6 6 Held by public 3.9 3.9 3.7 3.7 3.7 3.6 3.6 3.5 3.5 7 Held by agencies 1.2 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,062.2 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 1,411.4 1,464.5 9 Public debt securities 1,060.7 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 1,410.1 1,463.1 10 Other debt1 1.5 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,079.8 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 1,389.0 1,490.0 1,490.0 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 TTyyppee aanndd hhoollddeerr 11997799 11998800 11998811 11998822 Q2 Q3 Q4 Q1 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,319.6 1,377.2 1,410.7 1,463.7 By type 2 Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,318.1 1,375.8 1,400.9 1,452.1 3 Marketable 530.7 623.2 720.3 881.5 978.9 1,024.0 1,050.9 1,097.7 4 Bills 172.6 216.1 245.0 311.8 334.3 340.7 343.8 350.2 5 Notes 283.4 321.6 375.3 465.0 527.1 557.5 573.4 604.9 6 Bonds 74.7 85.4 99.9 104.6 117.5 125.7 133.7 142.6 7 Nonmarketable1 313.2 305.7 307.0 314.0 339.2 351.8 350.0 354.4 8 State and local government series 24.6 23.8 23.0 25.7 33.1 35.1 36.7 38.1 9 Foreign issues2 28.8 24.0 19.0 14.7 11.4 11.5 10.4 9.9 10 Government 23.6 17.6 14.9 13.0 10.8 11.5 10.4 9.9 11 Public 5.3 6.4 4.1 1.7 .6 .0 .0 .0 12 Savings bonds and notes 79.9 72.5 68.1 68.0 69.4 70.3 70.7 71.6 13 Government account series3 177.5 185.1 196.7 205.4 225.0 234.7 231.9 234.6 14 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.5 1.5 9.8 11.6 By holder4 15 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 229.3 239.0 236.3 239.8 16 Federal Reserve Banks 117.5 121.3 131.0 139.3 141.7 155.4 151.9 150.8 17 Private investors 540.5 616.4 694.5 848.4 948.6 982.7 1,022.6 1,073.0 18 Commercial banks 96.4 116.0 109.4 131.4 171.6 176.3 188.8' 189.8 19 Mutual savings banks 4.7 5.4 5.2 n.a. 28.3 22.1 22.8 19.4 20 Insurance companies 16.7 20.1 19.1 38.7 44.8 47.3 48.9 n.a. 21 Other companies 22.9 25.7 37.8 n.a. 32.8 35.9 40.2 43.1 22 State and local governments 69.9 78.8 85.6 113.4 n.a. n.a. n.a. n.a. Individuals 23 Savings bonds 79.9 72.5 68.0 68.3 69.7 70.6 71.5 72.2 24 Other securities 36.2 56.7 75.6 48.2 51.6 58.4 61.9 64.1 25 Foreign and international5 124.4 127.7 141.4 149.4 160.1 160.2 168.9 166.4 26 Other miscellaneous investors6 90.1 106.9 152.3 233.2 n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes nontion Administration; depository bonds, retirement plan bonds, and individual interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated mutual savings banks, corporate pension trust funds, dealers and brokers, certain series held by foreigners. U.S. government deposit accounts, and U.S. government-sponsored agencies. 3. Held almost entirely by U.S. government agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. government agencies and trust Statement of the Public Debt of the United States; data by holder. Treasury funds are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • June 1984 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1984 1984 week ending Wednesday IItteemm 11998811 11998822 11998833 Mar/ Apr. May Apr. 4 Apr. 11 Apr. 18 Apr. 25 May 2 May 9 Immediate delivery' 1 U.S. government securities 24,728 32,271 42,135 50,354 45,756 54,928 57,240 44,469 46,775 46,351 40,547 48,567 By maturity 2 Bills 14,768 18,398 22,393 23,333 24,618 29,011 27,246 22,773 26,620 26,244 20,900 25,761 3 Other within 1 year 621 810 708 904 934 1,162 1,177 772 1,037 824 1,118 853 4 1-5 years 4,360 6,272 8,758 11,008 8,855 11,377 10,935 7,744 8,156 8,840 9,850 10,954 5 5-10 years 2,451 3,557 5,279 7,773 5,782 6,700 8,585 6,553 5,686 5,633 4,057 5,310 6 Over 10 years 2,528 3,234 4,997 7,335 5,567 6,679 9,296 6,627 5,276 4,810 4,622 5,689 By type of customer 7 U.S. government securities dealers 1,640 1,769 2,257 1,993 2,282 2,440 2,381 1,787 1,561 3,622 2,352 2,016 8 U.S. government securities brokers 11,750 15,659 21,045 27,335 22,648 28,003 30,755 22,858 22,315 21,481 20,339 25,059 9 All others2 11,337 15,344 18,832 21,026 20,826 24,485 24,103 19,824 22,898 21,247 17,856 21,492 10 Federal agency securities 3,306 4,142 5,576 7,139 7,212 6,545 6,274 7,089 8,104 7,670 5,971 6,494 11 Certificates of deposit 4,477 5,001 4,333 4,809 7,618 6,184 5,050 9,105 7,247 7,105 8,422 8,693 12 Bankers acceptances 1,807 2,502 2,642 2,503 3,065 3,328 2,712 3,274 3,032 3,260 2,637 3,206 13 Commercial paper 6,128 7,595 8,036 8,124 9,858 8,808 10,942 9,162 10,274 9,500 9,343 7,961 Futures transactions3 14 Treasury bills 3,523 5,031 6,655 8,525 8,513 11,535 10,117 9,560 6,983 8,823 6,373 10,405 15 Treasury coupons 1,330 1,490 2,501 4,626 3,786 5,537 4,635 3,879 4,088 3,441 3,044 4,509 16 Federal agency securities 234 259 265 437 223 355 358 259 265 297 176 403 Forward transactions4 17 U.S. government securities 365 835 1,493 1,389 990 2,028 1,038 635 322 2,655 1,114 3,229 18 Federal agency securities 1,370 982 1,646 2,595 2,952 3,061 2,969 3,695 3,121 1,592 2,648 3,783 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 1984 1984 week ending Wednesday IItteemm 11998811 11998822 11998833 Mar/ Apr. May Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 Net immediate' 1 U.S. government securities 9.033 9,328 6,263 -4,169 -4,717 -14,123 -5,954 -4,063 -3,940 -1,543 -7,184 2 Bills 6.485 4,837 4,282 -1,055 -2,087 -11,074 -2,339 -2,393 -1,841 891 -3,189 3 Other within 1 year -1.526 -199 -177 -362 -837 -1,157 -399 -809 -766 -843 -806 4 1-5 years 1.488 2,932 1,709 -1,918 -1,150 -87 -1,344 -783 -1,077 -1,308 -2,144 5 5-10 years 292 -341 -78 -321 -46 -940 -718 928 396 -220 -638 6 Over 10 years 2,294 2,001 528 -514 -598 -865 -1,154 -1,006 -653 -63 -408 7 Federal agency securities 2,277 3,712 7,172 16,078 16,571 16,764 15,656 15,208 17,226 17,170 16,452 8 Certificates of deposit 3.435 5,531 5,839 6,914 6,968 6,402 6,792 6,596 6,934 7,208 6,870 9 Bankers acceptances 1,746 2,832 3,332 2,838 3,299 3,101 2,935 2,586 3,075 3,676 3,424 10 Commercial paper 2,658 3,317 3,159 3,012 2,797 2,937 2,677 3,759 3,050 2,609 1,874 Futures positions 11 Treasury bills -8,934 -2,508 -4,125 -1,219 -686 9,935 -991 -1,738 -1,147 -2,951 697 12 Treasury coupons -2.733 -2,361 -1,032 2,052 971 1,081 2,480 908 1,252 929 902 13 Federal agency securities 522 -224 170 201 79 628 387 474 370 -326 -172 Forward positions 14 U.S. government securities -603 -788 -1,935 -825 -1,932 -4,574 -752 -534 -726 -1,104 -3,571 15 Federal agency securities -451 -1,190 -3,561 -9,752 -9,485 -10,278 -9,623 -9,205 -10,485 -9,046 -9,019 Financing2 Reverse repurchase agreements3 16 Overnight and continuing 14.568 26,754 29,099 38,984 43,422 1 39,024 45,993 40,648 41,756 45,291 17 Term agreements 32,048 48,247 52,493 64,942 64,974 1 66,254 63,789 64,327 66,907 64,873 Repurchase agreements4 n.a. 18 Overnight and continuing 35,919 49,695 57,946 69,961 74,366 i 71,061 75,592 74,113 72,177 75,581 19 Term agreements 29,449 43,410 44,410 53,348 52,614 t 52,644 48,647 51,847 57,236 52,726 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1983 1984 AAggeennccyy 11998800 11998811 11998822 Oct. Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies 188,665 221,946 237,085 239,121 240,177 239,716 239,872 241,628 382,398 2 Federal agencies 28,606 31,806 33,055 33,735 33,813 33,940 33,919 33,785 32,800 3 Defense Department1 610 484 354 258 253 243 234 215 206 4 Export-Import Bank2 3 11,250 13,339 14,218 14,740 14,740 14,853 14,852 14,846 15,347 5 Federal Housing Administration4 477 413 288 203 197 194 173 169 166 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 14,840 14,945 14,970 14,980 14,875 14,805 9 United States Railway Association6 492 202 194 125 109 111 111 111 111 10 Federally sponsored agencies7 160,059 190,140 204,030 205,386 206,364 205,776 205,953 207,843 211,891 11 Federal Home Loan Banks 37,268 54,131 55,967 49,956 49,285 48,930 48,344 48,224 48,594 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 6,950 7,024 6,793 6,679 7,556 8,633 13 Federal National Mortgage Association 55,182 58,749 70,052 71,965 73,531 74,594 74,676 75,865 77,966 14 Farm Credit Banks 62,923 71,359 71,896 73,465 73,474 72,409 73,023 72,856 73,180 15 Student Loan Marketing Association (8) 421 1,591 3,050 3,050 3,050 3,231 3,342 3,518 MEMO 16 Federal Financing Bank debt9 87,460 110,698 126,424 134,799 135,361 135,791 135,940 135,859 137,707 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,676 14,676 14,789 14,789 14,789 15,296 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 13,175 13,220 13,245 13,255 13,150 13,080 21 United States Railway Association6 492 202 194 125 109 111 111 111 111 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 55,916 55,916 55,266 54,776 54,471 55,186 23 Rural Electrification Administration 9,196 13,516 17,157 19,093 19,216 19,766 19,927 19,982 20,186 24 Other 11,262 12,740 22,774 25,660 26,070 26,460 26,928 27,202 27,694 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

A32 Domestic Nonfinancial Statistics • June 1984 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 1984 Type of issue or issuer, or use 11998811 11998822 11998833 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 All issues, new and refunding1 47,732 78,950 85,092 6,194 6,160 6,650 5,829 8,854 5,058' 4,484' 5,306 Type of issue 2 General obligation 12,394 21,088 21,470 1,614 1,266 1,935 1,679 1,134 1,117' 1,809' 2,458 3 U.S. government loans2 34 225 96 9 14 15 15 15 0 2 2 4 Revenue 35,338 57,862 63,622 4,580 4,894 4,715 4,150 7,720 3,941' 2,675' 2,848 5 U.S. government loans2 55 461 253 29 35 39 39 39 1 2 4 Type of issuer 6 State 5,288 8,406 7,135 673 452 856 405 198 327' 935 584 7 Special district and statutory authority 27,499 45,000 50,632 3,357 4,199 4,387 3,318 5,790 3,485' 2,080' 2,870 8 Municipalities, counties, townships, school districts 14,945 25,544 27,325 2,164 1,509 1,407 2,106 2,866 1,246' 1,469' 1,852 9 Issues for new capital, total 46,530 74,613 71,120 4,612 5,512 5,187 5,333 8,438 4,055' 3,903' 4,545 Use of proceeds 10 Education 4,547 6,444 8,170 714 527 457 515 744 391' 343' 592 11 Transportation 3,447 6,256 4,353 261 195 250 336 421 127 330' 53 12 Utilities and conservation 10,037 14,254 13,547 285 1,238 605 1,101 1,230 1,914' 723' 1,250 13 Social welfare 12,729 26,605 26,378 2,139 2,334 2,580 2,080 2,676 826' 1,091' 1,032 14 Industrial aid 7,651 8,256 7,088 254 494 323 516 2,317 127 287 71 15 Other purposes 8,119 12,797 11,584 959 724 972 785 1,050 67C 1,129' 1,547 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 1984 Type of issue or issuer, or use 11998811 11998822 11998833 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 All issues1-2 70,441 84,198 98,845 5,941 6,568 6,897' 8,103 6,812 7,691 7,629' 5,442 2 Bonds 45,092 53,636 47,266 2,547 2,865 3,055 4,075 3,173 5,648 5,250' 3,346 Type of offering 3 Public 38,103 43,838 47,266 2,547 2,865 3,055 4,075 3,173 5,648 5,250' 3,346 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 8,133 200 282 367 22 423 179 452 68 6 Commercial and miscellaneous 5,229 5,681 5,374 458 353 114 23 201 976 626 258 7 Transportation 2,052 1,474 1,086 0 0 0 111 105 10 75 180 8 Public utility 8,963 12,155 7,066 355 590 510 910 120 325 385 521 9 Communication 4,280 2,265 3,380 0 100 50 0 0 210 0 200 10 Real estate and financial 12,243 18,938 22,227 1,534 1,540 2,014 3,009 2,324 3,948 3,712' 2,119 11 Stocks3 25,349 30,562 51,579 3,394 3,703 3,842 4,028 3,639 2,043 2,379 2,096 Type 12 Preferred 1,797 5,113 7,213 247 644 300 433 253 305 425 227 13 Common 23,552 25,449 44,366 3,147 3,059 3,542 3,595 3,386 1,738 1,954 1,869 Industry group 14 Manufacturing 5,074 5,649 14,135 1,309 962 744 498 649 427 299 387 15 Commercial and miscellaneous 7,557 7,770 13,112 743 997 868 1,498 852 465 616 486 16 Transportation 779 709 2,729 145 165 305 192 413 54 15 105 17 Public utility 5,577 7,517 5,001 263 200 588 622 245 225 45 134 18 Communication 1,778 2,227 1,822 236 0 36 13 12 30 20 18 19 Real estate and financial 4,584 6,690 14,780 698 1,379 1,301 1,145 1,468 842 1,384 966 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 A33 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1983 1984 IItteemm 11998822 11998833 Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. INVESTMENT COMPANIES' 1 Sales of own shares2 45,675 84,793 5,915 6,532 6,341 6,846 10,274 8,233 8,857 9,557 2 Redemptions of own shares3 30,078 57,120 4,412 4,264 3,920 5,946 5,544 5,162 5,339 7,490 3 Net sales 15,597 27,673 1,503 2,268 2,421 900 4,730 3,071 3,518 2,067 4 Assets4 76,841 113,599 109,455 107,314 113,052 113,599 114,839 111,068 114,537 116,812 5 Cash position5 6,040 8,343 8,868 8,256 9,395 8,343 8,963 9,140 10,406 10,987 6 Other 70,801 105,256 100,587 99,058 103,657 105,256 105,876 101,928 104,131 105,825 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. 1982 1983 1984 AAccccoouunntt 11998811 11998822 11998833 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Corporate profits with inventory valuation and capital consumption adjustment 192.3 164.8 229.2 166.8 168.5 161.9 181.8 218.2 248.4 268.2 277.5 2 Profits before tax 227.0 174.2 207.6 178.8 177.3 167.5 169.7 203.3 229.1 228.2 240.6 3 Profits tax liability 82.8 59.1 76.9 61.4 60.8 54.0 61.5 76.0 84.9 85.3 92.1 4 Profits after tax 144.1 115.1 130.6 117.4 116.5 113.5 108.2 127.2 144.1 142.9 148.5 5 Dividends 64.7 68.7 73.2 67.8 68.8 70.4 71.4 72.0 73.7 75.9 78.3 6 Undistributed profits 79.4 46.4 57.3 49.5 47.7 43.1 36.7 55.2 70.4 67.0 70.2 7 Inventory valuation -23.6 -8.3 -9.2 -8.5 -9.0 -10.3 -1.7 -10.6 -18.3 -6.3 -12.9 8 Capital consumption adjustment -11.0 -1.1 30.8 -3.5 .1 4.7 13.9 25.6 37.6 46.2 49.8 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • June 1984 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Q4 Ql Q2 Q3 Q4 1 Current assets 912.7 1,043.7 1,214.8 1,327.0 1,419.3 1,425.4 1,437.3 1,465.1 1,522.5 1,561.2 ? Cash 97.2 105.5 118.0 126.9 131.8 144.0 138.7 145.0 148.1 164.9 3 U.S. government securities 18.2 17.2 16.7 18.7 17.4 22.4 26.0 27.9 26.6 30.2 4 Notes and accounts receivable 330.3 388.0 459.0 506.8 530.3 511.0 518.4 535.0 563.4 579.0 5 Inventories 376.9 431.8 505.1 542.8 585.1 575.2 573.4 571.0 590.7 591.9 6 Other 90.1 101.1 116.0 131.8 154.6 172.6 180.7 186.2 193.7 195.3 7 Current liabilities 557.1 669.5 807.3 889.3 976.3 977.8 987.1 996.4 1,037.1 1,056.7 8 Notes and accounts payable 317.6 383.0 460.8 513.6 558.8 552.8 542.7 550.8 577.3 598.8 9 Other 239.6 286.5 346.5 375.7 417.5 425.0 444.4 445.6 459.9 457.9 10 Net working capital 355.5 374.3 407.5 437.8 442.9 447.6 450.2 468.6 485.4 504.6 11 MEMO: Current ratio1 1.638 1.559 1.505 1.492 1.454 1.458 1.456 1.470 1.468 1.477 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. 1983 1984 IInndduussttrryy11 11998822 11998833 1199884411 Ql Q2 Q3 Q4 Ql Q2 Q3' Q41 1 Total nonfarm business 282.71' 269.22' 308.98' 261.71' 261.16' 270.05' 283.96' 293.15 303.79 314.52 324.45 Manufacturing 2 Durable goods industries 56.44 51.78 61.40 50.74 48.48 53.06 54.85 58.94 58.28 6633..3399 6655..0000 3 Nondurable goods industries 63.23 59.75 67.36 59.12 60.31 58.06 61.50 63.84 67.72 67.02 70.86 Nonmanufacturing 4 Mining 15.45 11.83 13.97 12.03 10.91 11.93 12.43 13.95 13.32 14.14 14.47 Transportation 5 Railroad 4.38 3.92 4.90 3.35 3.64 44..0077 4.63 4.41 5.12 5.40 4.67 6 Air 3.93 3.77 2.67 4.09 4.10 3.57 3.32 2.77 2.69 2.57 2.65 7 Other 3.64 3.50 4.40 3.60 3.14 3.36 3.91 4.28 4.32 4.35 4.64 Public utilities 8 Electric 33.40 34.99 35.58 33.97 34.86 35.84 35.31 35.74 35.12 35.38 36.07 9 Gas and other 8.55 7.00 9.40 7.64 6.62 6.38 7.37 7.87 9.31 9.75 10.67 10 Commercial and other2 93.68 92.67 109.30 87.17 89.10 93.79 100.62 101.35 107.92 112.52 115.42 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A35 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1983 1984 AAccccoouunntt 11997788 11997799 11998800 11998811 11998822 Q1 Q2 Q3 Q4 Ql ASSETS Accounts receivable, gross 1 Consumer 52.6 65.7 73.6 85.5 89.5 89.9 91.3 92.3 92.8 96.9 2 Business 63.3 70.3 72.3 80.6 81.0 82.2 84.9 86.8 95.2 101.1 Total 116.0 136.0 145.9 166.1 170.4 172.1 176.2 179.0 188.0 198.0 4 LESS: Reserves for unearned income and losses.... 15.6 20.0 23.3 28.9 30.5 29.7 30.4 30.1 30.6 31.9 5 Accounts receivable, net 100.4 116.0 122.6 137.2 139.8 142.4 145.8 148.9 157.4 166.1 6 Cash and bank deposits 3.5 1 7 Securities 1.3 )• 24.91 27.5 34.2 39.7 42.8 44.3 45.0 45.3 47.1 8 All other 17.3 J 9 Total assets 122.4 140.9 150.1 171.4 179.5 185.2 190.2 193.9 202.7 213.2 LIABILITIES 10 Bank loans 6.5 8.5 13.2 15.4 18.6 16.6 16.3 17.0 19.1 14.7 11 Commercial paper 34.5 43.3 43.4 51.2 45.8 45.2 49.0 49,7 53.6 58.4 Debt 12 Short-term, n.e.c 8.1 8.2 7.5 9.6 8.7 9.8 9.6 8.7 11.3 12.2 13 Long-term, n.e.c 43.6 46.7 52.4 54.8 63.5 64.7 64.5 66.2 65.4 68.7 14 Other 12.6 14.2 14.3 17.8 18.7 22.8 24.0 24.4 27.1 29.8 15 Capital, surplus, and undivided profits 17.2 19.9 19.4 22.8 24.2 26.0 26.7 27.9 26.2 29.4 16 Total liabilities and capital 122.4 140.9 150.1 171.4 179.5 185.2 190.2 193.9 202.7 213.2 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 1984 1984 1984 MMMaaarrr... 333111,,, 111999888444''' Jan. Feb. Mar. Jan. Feb. Mar. Jan. Feb. Mar. 1 Total 101,143 2,973 1,934 706 30,660 28,218 26,006 27,687 26,284 25,300 2 Retail automotive (commercial vehicles) 23,017 959 700 364 2,347 2,157 1,878 1,388 1,457 1,514 3 Wholesale automotive 17,225 625 638 -10 9,392 9,856 7,728 8,767 9,218 7,738 4 Retail paper on business, industrial, and farm equipment 28,997 449 568 352 1,525 1,488 1,304 1,076 920 952 5 Loans on commercial accounts receivable and factored commercial accounts receivable 10,764 1,037 -117 -236 14,787 12,313 12,709 13,750 12,430 12,945 6 All other business credit 21,140 -97 145 236 2,609 2,404 2,387 2,706 2,259 2,151 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • June 1984 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 1984 IItteemm 11998811 11998822 11998833 Oct. Nov. Dec. Jan. Feb. Mar. Apr. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 90.4 94.6 92.8 95.8 98.0 94.8 92.9 104.1 94.0' 92.2 2 Amount of loan (thousands of dollars) 65.3 69.8 69.6 72.5 76.7 73.3 71.7 77.8 73.4R 70.9 3 Loan/price ratio (percent) 74.8 76.6 77.1 78.4 80.5 79.1 79.2 77.8 80.4' 79.1 4 Maturity (years) 27.7 27.6 26.7 26.9 26.5 27.3 27.8 27.3 27.9' 28.0 5 Fees and charges (percent of loan amount)2 2.67 2.95 2.40 2.33 2.54 2.56 2.61 2.41 2.52' 2.63 6 Contract rate (percent per annum) 14.16 14.47 12.20 11.80 11.82 11.94 11.80 11.78 11.56' 11.80 Yield (percent per annum) 7 FHLBB series5 14.74 15.12 12.66 12.25 12.34 12.42 12.29 12.23 12.02' 12.09 8 HUD series4 16.52 15.79 13.43 13.52 13.48 13.41 13.28 13.31 13.57 13.77 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 16.31 15.31 13.11 13.23 13.23 13.25 13.08 13.20 13.68 13.80 10 GNMA securities6 15.29 14.68 12.26 12.42 12.51 12.49 12.35 12.31 12.70 13.01 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 58,675 66,031 74,847 75,665 76,714 78,256 79,049 79,350 80,974 81,956 12 FHA/VA-insured 39,341 39,718 37,393 36,455 36,349 36,211 40,873 35,420 35,329 35,438 13 Conventional 19,334 26,312 37,454 39,210 40,365 42,045 38,177 43,930 45,645 46,518 Mortgage transactions (during period) 14 Purchases 6,112 15,116 17,554 1,244 1,348 2,204 1,285 1,507 2,030 1,775 15 Sales 2 2 3,528 257 0 250 20 723 0 235 Mortgage commitments1 16 Contracted (during period) 9,331 22,105 18,607 1,882 997 1,471 1,772 1,930 1,626 1,561 17 Outstanding (end of period) 3,717 7,606 5,461 7,182 6,493 5,461 5,470 5,872 5,333 5,135 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodJ8 18 Total 5,231 5,131 5,996 6,971 7,093 7,633 8,049 8,566 8,980 19 FHA/VA 1,065 1,027 974 955 940 941 940 934 929 20 Conventional 4,166 4,102 5,022 6,016 6,153 6,691 7,109 7,632 8,050 Mortgage transactions (during period) 21 Purchases 3,800 23,673 23,089 2,886 1,287 1,685 1,419 1,389 1,291 n a. 22 Sales 3,531 24,170 19,686 2,750 1,143 1,115 984 810 863 Mortgage commitments9 23 Contracted (during period) 6,896 28,179 32,852 2,598 2,093 1,704 1,470 1,386 1,874 24 Outstanding (end of period) 3,518 7,549 16,964 16,198 16,994 16,964 16,994 16,944 17,514 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 A37 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1983 1984 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11998811 11998822 11998833 Q1 Q2 Q3 Q4 Q1 1 All holders 1,583,264 1,655,013 1,826,344' 1,681,630 1,723,052 1,775,117 1,826,344' 1,870,005' 2 1- to 4-family 1,065,294 1,105,756 1,214,542' 1,122,111 1,146,926 1,182,356 1,214,542' 1,246,759' 3 Multifamily 136,354 140,542 150,948' 141,500 144,731 147,052 150,948' 153,895' 4 Commercial 279,889 302,009 351,287' 311,107 323,427 336,697 351,287' 359,220' 5 101,727 106,706 109,567 106,912 107,968 109,012 109,567 110,131' Major financial institutions 1,040,827 1,023,541 1,109,963' 1,028,802 1,048,688 1,079,605 1,109,963 1,134,658 7 Commercial banks' 284,536 300,203 328,878 303,371 310,217 320,299 328,878 337,878 8 1- to 4-family 170,013 173,157 181,672 172,346 174,032 178,054 181,672 185,833 9 Multifamily 15,132 16,421 18,023 16,230 16,876 17,424 18,023 18,583 10 Commercial 91,026 102,219 119,843 106,301 110,437 115,692 119,843 123,832 11 Farm 8,365 8,406 9,340 8,494 8,872 9,129 9,340 9,630 1? Mutual savings banks 99,997 97,805 136,054' 105,378 119,236 129,645 136,054' 142,255 n 1- to 4-family 68,187 66,777 96,569' 73,240 84,349 92,467 96,569' 101,176 14 Multifamily 15,960 15,305 17,785' 15,587 16,667 17,588 17,785' 18,341 15 Commercial 15,810 15,694 21,671' 16,522 18,192 19,562 21,671' 22,708 16 Farm 40 29 29 29 28 28 29 30 17 Savings and loan associations 518,547 483,614 493,432 477,022 474,510 482,305 493,432 502,646 18 1- to 4-family 433,142 393,323 389,811 384,718 377,947 381,744 389,811 396,336 19 Multifamily 37,699 38,979 42,435 39,259 39,954 41,334 42,435 43,479 20 Commercial 47,706 51,312 61,186 53,045 56,609 59,227 61,186 62,831 21 Life insurance companies 137,747 141,919 151,599 143,031 144,725 147,356 151,599 151,879 22 1- to 4-family 17,201 16,743 15,385 16,388 15,860 15,534 15,385 15,351 23 Multifamily 19,283 18,847 19,189 18,825 18,778 18,857 19,189 19,207 24 Commercial 88,163 93,501 104,279 95,158 97,416 100,209 104,279 104,621 25 Farm 13,100 12,828 12,746 12,660 12,671 12,756 12,746 12,700 26 Federal and related agencies 126,094 138,185 147,371 140,028 142,094 142,224 147,371 151,349' 27 Government National Mortgage Association 4,765 4,227 3,395 3,753 3,643 3,475 3,395 3,273 28 1- to 4-family 693 676 630 665 651 639 630 607 29 Multifamily 4,072 3,551 2,765 3,088 2,992 2,836 2,765 2,666 30 Farmers Home Administration 2,235 1,786 2,141 2,077 1,605 600 2,141 2,094' 31 1- to 4-family 914 783 1,159 707 381 211 1,159 1,005' 32 Multifamily 473 218 173 380 555 32 173 303' 33 Commercial 506 377 409 337 248 113 409 319' 34 Farm 342 408 400 653 421 244 400 467' 35 Federal Housing and Veterans Administration 5,999 5,228 4,894 5,138 5,084 5,050 4,894 4,969 36 1- to 4-family 2,289 1,980 1,893 1,867 1,911 2,061 1,893 1,929 37 Multifamily 3,710 3,248 3,001 3,271 3,173 2,989 3,001 3,040 38 Federal National Mortgage Association 61,412 71,814 78,256 73,666 74,669 75,174 78,256 80,975 39 1- to 4-family 55,986 66,500 73,045 68,370 69,396 69,938 73,045 75,770 40 Multifamily 5,426 5,314 5,211 5,296 5,273 5,236 5,211 5,205 41 Federal Land Banks 46,446 50,350 51,052 50,544 50,858 51,069 51,052 51,022 42 1- to 4-family 2,788 3,068 3,000 3,059 3,030 3,008 3,000 2,993 43 Farm 43,658 47,282 48,052 47,485 47,828 48,061 48,052 48,029 44 Federal Home Loan Mortgage Corporation 5,237 4,780 7,633 4,850 6,235 6,856 7,633 9,016 45 1- to 4-family 5,181 4,733 7,576 4,795 6,119 6,799 7,576 8,951 46 Multifamily 56 47 57 55 116 57 57 65 47 Mortgage pools or trusts2 163,000 216,654 285,021 234,596 252,665 272,611 285,021 296,527' 48 Government National Mortgage Association 105,790 118,940 159,850 127,939 139,276 151,597 159,850 166,261' 49 1- to 4-family 103,007 115,831 155,801 124,482 135,628 147,761 155,801 161,943' 50 Multifamily 2,783 3,109 4,049 3,457 3,648 3,836 4,049 4,318 51 Federal Home Loan Mortgage Corporation 19,853 42,964 57,843 48,008 50,934 54,152 57,843 59,422 52 1- to 4-family 19,501 42,560 57,206 47,575 50,446 53,539 57,206 58,755 53 Multifamily 352 404 637 433 488 613 637 667 54 Federal National Mortgage Association3 717 14,450 25,121 18,157 20,933 23,819 25,121 28,354 55 1- to 4-family 717 14,450 25,121 18,157 20,933 23,819 25,121 28,354 56 Farmers Home Administration 36,640 40,300 42,207 40,492 41,522 43,043 42,207 42,490' 57 1- to 4-family 18,378 20,005 20,404 20,263 20,728 21,083 20,404 20,573' 58 Multifamily 3,426 4,344 5,090 4,344 4,343 5,042 5,090 5,081' 59 Commercial 6,161 7,011 7,351 7,115 7,303 7,542 7,351 7,456' 60 Farm 8,675 8,940 9,362 8,770 9,148 9,376 9,362 9,380' 61 Individual and others4 253,343 276,633 283,989 278,204 279,605 280,677 283,989 287,471 62 1- to 4-family5 167,297 185,170 185,270 185,479 185,515 185,699 185,270 187,183 63 Multifamily 27,982 30,755 32,533 31,275 31,868 31,208 32,533 32,940 64 Commercial 30,517 31,895 36,548 32,629 33,222 34,352 36,548 37,453 65 Farm 27,547 28,813 29,638 28,821 29,000 29,418 29,638 29,895 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

A38 Domestic NonfinancialS tatistics • June 1984 1.55 CONSUMER INSTALLMENT CREDIT" Total Outstanding, and Net ChangeA Millions of dollars 1983 1984 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Amounts outstanding (end of period) 1 Total 314,910 335,691 355,849 375,246 379,334 384,410 396,082 394,922 399,177 402,466 407,671 By major holder 2 Commercial banks 147,013 147,622 152,490 160,973 163,274 165,670 171,978 171,934 175,941 177,625 181,022 3 Finance companies 76,756 89,818 98,693 102,174 102,338 102,560 102,862 101,680 101,702 101,619 101,119 4 Credit unions 44,041 45,953 47,253 51,123 51,767 52,578 53,471 53,882 54,851 55,892 56,962 5 Retailers2 28,697 31,348 32,735 30,926 31,337 32,371 35,911 34,505 33,455 33,208 33,327 6 Savings and loans 9,911 12,410 15,823 19,985 20,472 21,023 21,615 21,823 22,269 23,071 23,957 7 Gasoline companies 4,468 4,403 4,063 4,338 4,243 4,157 4,131 4,300 4,025 3,944 3,955 8 Mutual savings banks 4,024 4,137 4,792 5,727 5,903 6,051 6,114 6,798 6,934 7,107 7,329 Bv major type of credit 9 Automobile 116,838 125,331 131,086 139,002 140,101 141,107 142,449 143,186 146,047 146,047 147,944 10 Commercial banks 61,536 58,081 59,555 63,448 64,780 65,917 67,557 68,747 71,327 71,237 73,016 1 1 1 2 D In i d re ir c e t ct l o p a a n p s er 3 26 5 , , 3 2 0 3 3 3 3 2 4 3 , , 3 7 7 0 5 6 2 3 3 4 , , 4 7 7 5 2 5 ( ( 3 3 ) ) ( ( 3 3 ) ) ( ( 3 3 ) ) ( ( 3 3 ) ) ((')3 ) ( ( 3 3 ) ) ( ( 3 3 ) ) ( ( 3 3 ) ) 13 Credit unions 21,060 21,975 22,596 24,451 24,759 25,147 25,574 25,771 26,234 26,732 47,684 14 Finance companies 34,242 45,275 48,935 51,103 50,562 50,043 49,318 48,668 48,486 48,078 27,244 15 Revolving 58,506 64,500 69,998 71,039 72,105 74,032 80,823 78,566 77,671 79,110 80,184 16 Commercial banks 29,765 32,880 36,666 39,041 39,774 40,774 44,184 43,118 43,506 45,235 46,149 17 Retailers 24,273 27,217 29,269 27,660 28,088 29,101 32,508 31,148 30,140 29,931 30,080 18 Gasoline companies 4,468 4,403 4,063 4,338 4,243 4,157 4,131 4,300 4,025 3,944 3,955 19 Mobile home 17,321 17,958 22,254 23,189 23,358 23,492 23,680 23,668 23,571 23,661 23,850 20 Commercial banks 10,371 10,187 9,605 9,876 9,877 9,871 9,842 9,829 9,663 9,589 9,580 21 Finance companies 3,745 4,494 9,003 9,196 9,250 9,270 9,365 9,345 9,324 9,333 9,361 22 Savings and loans 2,737 2,788 3,143 3,575 3,682 3,793 3,906 3,923 4,003 4,147 4,306 23 Credit unions 469 489 503 542 549 558 567 571 581 592 603 24 Other 122,244 127,903 132,511 142,016 143,770 145,779 149,130 149,502 151,888 153,648 155,693 25 Commercial banks 45,341 46,474 46,664 48,608 48,843 49,108 50,395 50,240 51,445 51,564 52,277 26 Finance companies 38,769 40,049 40,755 41,875 42,526 43,247 44,179 43,667 43,892 44,208 44,074 27 Credit unions 22,512 23,490 24,154 26,130 26,459 26,873 27,330 27,540 28,036 28,568 29,115 28 Retailers 4,424 4,131 3,466 3,266 3,249 3,270 3,403 3,357 3,315 3,277 3,247 29 Savings and loans 7,174 9,622 12,680 16,410 16,790 17,230 17,709 17,900 18,266 18,924 19,651 30 Mutual savings banks 4,024 4,137 4,792 5,727 5,903 6,051 6,114 6,798 6,934 7,107 7,329 Net change (during period)4 31 Total 1,448 18,217 13,096 2,553 5,093 4,819 5,782 4,469 6,608 5,870 6,408 By major holder V2 Commercial banks -7,163 607 4,442 1,709 2,713 2,832 3,977 2,029 4,914 3,422 4,025 33 Finance companies 8,438 13,062 4,504 -385 470 -40 -146 -66 258 -193 -350 34 Credit unions -2,475 1,913 1,298 646 942 912 731 916 712 1,230 1,529 35 Retailers2 329 1,103 651 225 215 318 537 422 325 355 278 36 Savings and loans 1,485 1,682 2,290 448 437 584 589 364 414 813 868 37 Gasoline companies 739 -65 -340 -167 131 58 -31 72 -172 2 2 38 Mutual savings banks 95 -85 251 77 185 155 126 731 156 242 66 By major type of credit 39 Automobile 477 8,495 4,898 295 1,709 1,268 1,468 2,106 2,799 326 2,158 40 Commercial banks -5,830 -3,455 -9 1,014 1,483 1,257 1,568 1,722 2,635 432 1,766 41 Indirect paper -3,104 -858 225 (3) (3) (3) (3) (3) (3) (3) (3) 42 Direct loans -2,726 -2,597 -234 (3) (3) (3) (3) (3) (3) (3) (3) 43 Credit unions -1,184 914 622 309 451 436 349 428 276 660 -342 44 Finance companies 7,491 11,033 3,505 -1,028 -225 -425 -449 -44 -112 -766 734 45 Revolving 1,415 4,467 4,365 579 1,238 1,427 1,690 505 1,273 2,962 1,868 46 Commercial banks -97 3,115 3,808 511 875 1,040 1,207 18 1,127 2,613 1,568 47 Retailers 773 1,417 897 235 232 329 515 414 318 347 298 48 Gasoline companies 739 -65 -340 -167 131 58 -31 72 -172 2 2 49 Mobile home 483 1,049 609 255 -30 -64 1 -92 -127 285 285 50 Commercial banks -276 -186 -508 10 23 -4 39 -15 -112 -85 27 51 Finance companies 355 749 471 137 -158 -164 -166 -104 -93 218 110 52 Savings and loans 430 466 633 101 95 94 120 18 68 141 132 53 Credit unions -25 20 14 7 10 10 9 9 10 10 16 54 Other -927 4,206 3,224 1,424 2,176 2,188 2,623 1,950 2,662 2,298 2,097 55 Commercial banks -960 1,133 372 174 332 539 1,163 304 1,264 463 653 56 Finance companies 592 1,280 528 506 853 549 469 82 463 355 -118 57 Credit unions -1,266 975 662 330 481 466 374 479 426 558 780 58 Retailers -444 -314 -246 -10 -17 -11 22 8 7 8 -20 59 Savings and loans 1,056 1,217 1,657 347 342 490 469 346 346 673 735 60 Mutual savings banks 95 -85 251 77 185 155 126 731 156 242 66 • These data have been revised from July 1979 through February 1984. 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, S79.4 billion at the end of entertainment companies. 1981, $84.5 billion at the end of 1982, and $95.5 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 A39 1.56 TERMS OF CONSUMER INSTALLMENT CREDIT Percent unless noted otherwise 1983 1984 1982 Nov. Dec. Feb. INTEREST RATES Commercial banks' 1 48-month new car2 16.54 16.83 13.92 13.46 13.32 2 24-month personal 18.09 18.65 16.68 16.39 16.16 3 120-month mobile home2 17.45 18.05 15.91 15.47 15.45 4 Credit card 17.78 18.51 18.73 18.75 18.73 Auto finance companies 5 New car 16.17 16.15 12.58 13.50 13.92 14.18 14.11 14.05 6 Used car 20.00 20.75 18.74 18.16 18.06 17.54 17.59 17.52 OTHER TERMS3 Maturity (months) 7 New car 45.4 46.0 45.9 46.3 46.3 46.3 46.4 46.7 8 Used car 35.8 34.0 37.9 38.0 37.9 39.5 39.4 39.4 Loan-to-value ratio 9 New car 86.1 85.3 86.0 10 Used car 91.8 90.3 92.0 Amount financed (dollars) 11 New car 7,339 8,178 8,787 9,118 9,167 9,099 9,072 9,139 12 Used car 4,343 4,746 5,033 5,316 5,401 5,392 5,418 5,474 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

A40 Domestic Nonfinancial Statistics • June 1984 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1981 1982 1983 HI H2 HI H2 HI' H2' Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 369.8 386.0 343.2 377.2 395.3 523.3 392.4 362.0 356.8 434.8 504.7 541.9 By sector and instrument 2 U.S. government 53.7 37.4 79.2 87.4 161.3 186.6 87.8 86.9 106.9 215.5 231.3 141.8 i Treasury securities 55.1 38.8 79.8 87.8 162.1 186.7 88.3 87.3 108.3 215.9 231.4 141.9 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 316.2 348.6 264.0 289.8 234.1 336.8 304.6 275.1 249.9 219.3 273.4 400.1 6 Debt capital instruments 199.7 211.2 192.0 158.4 152.4 237.6 179.3 137.5 139.7 166.1 221.7 253.5 7 Tax-exempt obligations 28.4 30.3 30.3 21.9 50.5 52.0 21.1 22.6 41.7 59.4 60.3 43.8 8 Corporate bonds 21.1 17.3 26.7 22.1 18.8 14.9 26.1 18.0 10.8 26.9 21.1 8.6 y Mortgages 150.2 163.6 135.1 114.5 83.0 170.7 132.0 96.9 87.3 79.9 140.3 201.1 10 Home mortgages 112.2 120.0 96.7 75.9 56.6 110.9 92.6 59.2 55.8 58.6 92.9 128.9 ii Multifamily residential 9.2 7.8 8.8 4.3 1.3 8.9 4.9 3.7 4.2 -1.7 6.3 11.6 12 Commercial 21.7 23.9 20.2 24.6 20.0 48.0 25.2 23.9 21.4 18.6 40.1 55.8 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 99.2 125.3 137.6 110.1 53.2 51.7 146.7 15 Consumer credit 48.8 45.4 4.9 24.1 18.3 51.3 28.9 19.3 19.3 17.4 35.9 66.6 16 Bank loans n.e.c 37.4 51.2 36.7 54.7 54.4 26.1 45.5 63.9 70.1 38.8 17.3 34.9 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 14.9 31.1 19 By borrowing sector 316.2 348.6 264.0 289.8 234.1 336.8 304.6 275.1 249.9 219.3 273.4 400.1 20 State and local governments 19.1 20.5 20.3 9.7 36.3 43.7 9.1 10.2 29.3 43.3 50.7 36.7 21 Households 169.4 176.4 117.5 120.6 86.3 166.7 139.8 101.3 87.6 86.1 134.5 199.0 22 Farm 14.6 21.4 14.4 16.3 9.0 3.8 20.1 12.5 9.0 9.1 -.4 7.9 23 Nonfarm noncorporate 32.4 34.4 33.7 39.6 29.8 65.0 39.8 39.5 34.6 24.9 51.4 78.7 24 Corporate 80.6 96.0 78.1 103.7 72.7 57.5 95.8 111.5 89.3 56.0 37.2 77.9 25 Foreign net borrowing in United States 33.8 20.2 27.2 27.2 15.7 17.7 31.9 22.5 12.8 18.6 18.4 17.0 26 Bonds 4.2 3.9 .8 5.4 6.6 3.6 3.3 7.6 2.4 10.8 4.4 2.9 27 Bank loans n.e.c 19.1 2.3 11.5 3.7 -6.2 3.8 3.1 4.2 -5.1 -7.2 14.6 -7.0 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 4.3 4.9 3.5 3.0 6.0 4.0 4.6 30 Total domestic plus foreign 403.6 406.2 370.4 404.4 411.0 541.0 424.4 384.5 369.6 453.4 523.1 558.9 Financial sectors 31 Total net borrowing by financial sectors 74.6 82.5 63.3 85.4 69.3 89.8 87.4 83.4 89.8 48.7 75.2 104.4 By instrument 32 U.S. government related 37.1 47.9 44.8 47.4 64.9 67.7 45.2 49.6 61.3 68.4 68.0 67.5 ii Sponsored credit agency securities 23.1 24.3 24.4 30.5 14.9 1.4 28.9 32.1 23.6 6.3 -2.4 5.3 34 Mortgage pool securities 13.6 23.1 19.2 15.0 49.5 66.3 14.9 15.1 37.0 62.1 70.4 62.3 .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 22.0 42.2 33.8 28.5 -19.7 7.2 36.9 3/ Corporate bonds 7.5 7.8 7.1 -.8 2.3 17.1 -.3 -1.4 -1.2 5.8 15.4 18.8 38 Mortgages .1 * -.1 -.5 .1 * -.8 -.2 .1 .1 * * 39 Bank loans n.e.c 2.8 -.4 -.4 2.2 3.2 -1.0 3.2 1.1 5.2 1.2 -4.7 2.6 40 Open market paper 14.6 18.0 4.8 20.9 -2.0 13.0 23.5 18.4 14.0 -18.0 9.3 16.6 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 1.4 30.3 34.5 24.4 6.3 -2.4 5.3 43 Mortgage pools 13.6 23.1 19.2 15.0 49.5 66.3 14.9 15.1 37.0 62.1 70.4 62.3 44 Private financial sectors 37.5 34.6 18.5 38.0 4.4 22.0 42.2 33.8 28.5 -19.7 7.2 36.9 45 Commercial banks 1.3 1.6 .5 .4 1.2 .5 .2 .5 .7 1.7 .8 .2 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 -4.2 16.8 14.1 9.1 -15.2 -12.8 4.4 48 Finance companies 18.1 16.6 6.3 14.1 4.9 17.7 18.5 9.7 9.5 .2 13.7 21.7 49 REITs -1.4 -1.3 -2.2 .2 .1 .2 .2 .2 .1 .1 .2 .2 All sectors 50 Total net borrowing 478.2 488.7 433.7 489.8 480.3 630.8 511.8 467.9 459.4 502.1 598.3 663.3 51 U.S. government securities 90.5 84.8 122.9 133.0 225.9 254.4 131.8 134.3 167.6 284.0 299.4 209.4 52 State and local obligations 28.4 30.3 30.3 21.9 50.5 52.0 21.1 22.6 41.7 59.4 60.3 43.8 53 Corporate and foreign bonds 32.8 29.0 34.6 26.7 27.7 35.6 29.1 24.2 12.0 43.5 40.8 30.3 54 Mortgages 150.2 163.5 134.9 113.9 83.0 170.6 131.1 96.6 87.3 79.8 140.2 201.0 55 Consumer credit 48.8 45.4 4.9 24.1 18.3 51.3 28.9 19.3 19.3 17.4 35.9 66.6 56 Bank loans n.e.c 59.3 53.0 47.8 60.6 51.4 28.9 51.8 69.3 70.2 32.8 27.2 30.6 57 Open market paper 26.4 40.3 20.6 54.0 5.4 17.8 56.1 51.9 33.0 -22.1 -11.5 47.1 58 Other loans 41.9 42.4 37.8 55.8 17.9 20.2 61.8 49.7 28.4 7.4 6.0 34.5 External corporate equity funds raised in United States 59 Total new share issues 1.9 -3.8 22.2 -3.7 35.4 70.6 10.2 -17.7 23.7 47.0 87.2 54.1 60 Mutual funds -.1 .1 5.2 6.8 18.6 34.1 8.1 5.6 13.2 24.0 39.0 29.3 61 All other 1.9 -3.9 17.1 -10.6 16.8 36.5 2.1 -23.2 10.6 23.0 48.2 24.8 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 4.3 .5 1.2 3.8 4.4 4.3 4.4 64 Foreign shares purchased in United States -.5 .8 2.1 * 1.3 3.9 .7 -.7 -.2 2.9 5.7 2.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 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 369.8 386.0 343.2 377.2 395.3 523.3 392.4 362.0 356.8 434.8 504.7 554411..99 By public agencies and foreign 7 Total net advances 102.3 75.2 97.0 97.4 109.3 111177..22 113.8 8811..00 110077..99 111100..88 112299..11 110055..22 3 U.S. government securities 36.1 -6.3 15.7 17.2 17.9 27.4 31.2 3.1 17.7 18.2 50.8 4.0 4 Residential mortgages 25.7 35.8 31.7 23.4 61.1 76.0 21.9 25.0 48.1 74.0 80.7 71.3 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 20.8 44.1 37.1 31.7 27.4 10.5 31.2 Total advanced, by sector 7 U.S. government 17.1 19.0 23.7 24.1 16.7 9.7 27.9 20.3 14.2 19.1 8.2 11.2 8 Sponsored credit agencies 40.3 53.0 45.6 48.2 65.3 68.8 47.2 49.2 62.5 68.1 69.1 68.4 9 Monetary authorities 7.0 7.7 4.5 9.2 9.8 10.9 2.4 16.0 .1 19.5 12.0 9.8 10 Foreign 38.0 -4.6 23.2 16.0 17.6 27.8 36.4 -4.4 31.1 4.1 39.9 15.7 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 6677..77 4455..22 49.6 6611..33 6688..44 68.0 6677..55 12 Foreign 33.8 20.2 27.2 27.2 15.7 17.7 31.9 22.5 12.8 18.6 18.4 17.0 Private domestic funds advanced 13 Total net advances 338.4 379.0 318.2 354.4 366.6 491.6 355.7 353.1 323.0 411.0 461.9 521.2 14 U.S. government securities 54.3 91.1 107.2 115.9 207.9 227.0 100.6 131.1 149.9 265.8 248.6 205.4 15 State and local obligations 28.4 30.3 30.3 21.9 50.5 52.0 21.1 22.6 41.7 59.4 60.3 43.8 16 Corporate and foreign bonds 23.4 18.5 19.3 19.4 15.4 12.7 20.9 17.9 -1.7 32.4 19.9 5.6 17 Residential mortgages 95.6 91.9 73.7 56.7 -3.3 43.8 75.5 37.9 11.7 -17.2 18.4 69.2 18 Other mortgages and loans 149.3 156.3 94.8 156.9 96.8 149.0 154.3 159.5 131.7 62.0 101.9 196.1 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 302.3 294.7 262.3 305.2 271.2 373.8 317.3 293.1 272.8 268.9 353.5 394.0 7.1 Commercial banking 129.0 123.1 101.1 103.6 108.5 132.7 99.6 107.6 109.7 107.1 130.0 135.5 77 Savings institutions 72.8 56.7 54.9 27.2 30.6 133.6 41.5 12.8 29.5 31.0 132.1 135.1 73 Insurance and pension funds 75.0 66.4 74.4 79.3 94.2 103.1 75.3 83.4 95.4 93.0 107.4 98.7 24 Other finance 25.5 48.5 32.0 95.2 37.9 4.4 101.0 89.4 38.1 37.8 -16.0 24.8 75 Sources of funds 302.3 294.7 262.3 305.2 271.2 373.8 317.3 293.1 272.8 268.9 353.5 394.0 76 Private domestic deposits and RPs 141.0 142.0 168.6 211.7 173.4 204.4 213.8 209.6 163.4 182.7 219.7 189.0 27 Credit market borrowing 37.5 34.6 18.5 38.0 4.4 22.0 42.2 33.8 28.5 -19.7 7.2 36.9 78 Other sources 123.8 118.1 75.2 55.5 93.5 147.4 61.3 49.8 80.8 105.9 126.7 168.1 79 Foreign funds 6.5 27.6 -21.7 -8.7 -27.7 22.4 -8.7 -8.7 -30.1 -25.4 -18.0 62.9 30 Treasury balances 6.8 .4 -2.6 -1.1 6.1 -5.3 6.5 -8.7 -2.1 14.1 8.8 -19.5 31 Insurance and pension reserves 62.2 49.1 65.4 73.2 85.9 89.8 62.7 83.8 85.4 86.4 93.1 86.6 32 Other, net 48.4 41.0 34.0 -7.9 29.2 40.5 .8 -16.7 27.6 30.7 42.8 38.1 Private domestic nonfinancial investors 33 Direct lending in credit markets 73.6 118.9 74.4 87.2 99.7 139.8 80.6 93.8 78.7 122.4 115.6 164.0 34 U.S. government securities 36.3 61.4 38.3 47.4 58.1 89.6 37.2 57.6 43.1 72.7 88.9 90.2 35 State and local obligations 3.6 9.9 7.0 9.6 30.9 35.9 9.5 9.7 28.4 33.4 48.2 23.5 36 Corporate and foreign bonds -1.8 5.7 .6 -8.9 -9.4 -3.3 -5.5 -12.4 -26.3 7.4 -19.2 12.6 37 Open market paper 15.6 12.1 -4.3 3.7 -2.0 6.6 -3.3 10.7 6.7 -10.7 -10.1 23.4 38 Other 19.9 29.8 32.9 35.4 22.1 11.0 42.7 28.2 26.8 19.6 7.7 14.3 39 Deposits and currency 152.2 151.4 180.0 221.7 179.4 222.5 222.6 220.7 166.2 192.1 239.9 205.0 40 Currency 9.3 7.9 10.3 9.5 8.4 13.6 8.0 11.0 4.5 12.3 14.1 13.2 41 Checkable deposits 16.2 18.7 5.0 18.1 13.0 21.0 29.8 6.5 6.7 19.1 55.4 -13.4 47 Small time and savings accounts 65.9 59.2 83.1 47.2 137.0 220.8 30.7 63.6 95.1 178.6 300.2 141.4 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 -1.9 41.6 31.2 21.2 -31.6 -63.1 59.2 45 Security RPs 7.5 6.6 6.5 2.5 3.8 8.5 7.7 -2.6 1.1 6.6 11.0 6.0 46 Deposits in foreign countries 2.0 1.5 1.1 .5 -2.4 4.5 .8 .2 -1.8 -2.9 6.1 2.8 47 Total of credit market instruments, deposits and currency 225.8 270.3 254.4 308.9 279.1 362.3 303.3 314.5 244.9 314.5 355.5 369.1 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 24.7 18.8 49 Private financial intermediation (in percent) 89.3 77.7 82.4 86.1 74.0 76.0 89.2 83.0 84.4 65.4 76.5 75.6 50 Total foreign funds 44.6 23.0 1.5 7.3 -10.2 50.2 27.8 -13.1 1.0 -21.3 21.9 78.6 MEMO: Corporate equities not included above 51 Total net issues 1.9 -3.8 22.2 -3.7 35.4 70.6 10.2 -17.7 23.7 47.0 87.2 54.1 57 Mutual fund shares -.1 .1 5.2 6.8 18.6 34.1 8.1 5.6 13.2 24.0 39.0 29.3 53 Other equities 1.9 -3.9 17.1 -10.6 16.8 36.5 2.1 -23.2 10.6 23.0 48.2 24.8 54 Acquisitions by financial institutions 4.5 9.7 16.8 22.1 27.9 55.3 25.3 18.9 19.3 36.4 68.4 42.3 55 Other net purchases -2.7 -13.5 5.4 -25.9 7.5 15.3 -15.1 -36.6 4.4 10.6 18.8 11.9 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

A42 Domestic Nonfinancial Statistics • June 1984 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1983 1984 MMeeaassuurree 11998811 11998822 11998833 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr.' May 1 Industrial production1 151.0 138.6 147.6 153.8 155.0 155.3 156.2 158.5 160.0 160.8 162.5 163.2 Market groupings 2 Products, total 150.6 141.8 149.2 154.9 155.6 155.8 157.4 159.7 160.4 161.1 162.6 163.3 3 Final, total 149.5 141.5 147.1 152.1 152.7 153.2 155.2 157.5 158.0 158.6 160.3 161.0 4 Consumer goods 147.9 142.6 151.7 157.3 156.9 156.1 157.7 159.5 159.4 160.0 161.7 161.7 5 Equipment 151.5 139.8 140.8 144.9 147.0 149.1 151.8 154.9 156.1 156.6 158.4 159.9 6 Intermediate 154.4 143.3 156.6 165.4 166.5 165.5 165.4 167.8 169.0 170.3 171.3 171.8 7 Materials 151.6 133.7 145.2 152.2 154.0 154.5 154.5 156.6 159.4 160.5 162.3 163.1 Industry groupings 8 Manufacturing 150.4 137.6 148.2 155.1 156.2 156.4 156.8 159.5 161.4 162.1 164.1 164.7 Capacity utilization (percent)1-2 9 Manufacturing 79.4 71.1 75.2 78.4 78.9 78.8 78.9 80.1 80.9 81.0 81.8 81.9 10 Industrial materials industries 80.7 70.1 75.2 78.6 79.5 79.6 79.6 80.6 81.9 82.2 82.9 83.3 11 Construction contracts (1977 = 100)3 111.0 111.0 138.0 143.0 139.0 145.0 134.0 150.0 150.0 144.0 145.0 n.a. 12 Nonagricultural employment, total4 138.5 136.2 136.8 138.3'- 138.8' 139.3' 139.9' 140.4' 141.1 141.4 142.0 142.4 13 Goods-producing, total 109.4 102.6 101.5 101.5' 102.5' 103.2' 103.8' 104.6' 105.4 105.1 106.2 106.6 14 Manufacturing, total 103.7 96.9 96.0 96.1' 97.1' 97.8' 98.4' 99.0' 99.6 100.1 100.4 100.6 15 Manufacturing, production-worker ... 98.0 89.4 88.7 89.2' 90.4' 91.2' 91.9' 92.5' 93.1 93.6 94.0 94.2 16 Service-producing 154.4 154.6 156.1 158.5' 158.7' 159.1' 159.6' 160.0' 160.7 161.1 161.7 162.0 17 Personal income, total 386.5 409.3 453.3 441.5 446.4' 449.8' 453.9' 461.3' 464.7 467.0 469.4 18 Wages and salary disbursements 349.7 367.2 389.8 396.2 400.6 401.7 404.2' 409.5 411.5 413.0 417.8 n.a. 19 Manufacturing 287.3 286.2 300.4 308.2 310.2 312.8 314.4' 320.4 323.3 324.8 329.5 20 Disposable personal income5 373.7 397.3 426.3 434.1 438.8 442.1 446.2 454.0 457.3 459.8 461.6 21 Retail sales6 330.6 326.0 373.0 380.3 385.6 389.3 391.4 407.3 403.0 396.9 409.2 409.9 Prices7 22 Consumer 272.4 289.1 298.4 301.8 302.6 303.1 303.5 305.2 306.6 307.3 308.8 n.a. 23 Producer finished goods 269.8 280.7 285.2 285.1 287.6' 286.8 287.2' 289.4 290.6 291.7 291.4 n.a. 1. The capacity utilization series has been revised back to January 1967. 6. Based on Bureau of Census data published in Survey of Current Business. 2. Ratios of indexes of production to indexes of capacity. Based on data from 7. Data without seasonal adjustment, as published in Monthly Labor Review. Federal Reserve, McGraw-Hill Economics Department, Department of Com- Seasonally adjusted data for changes in the price indexes may be obtained from merce, and other sources. the Bureau of Labor Statistics, U.S. Department of Labor. 3. Index of dollar value of total construction contracts, including residential, nonresidential and heavy engineering, from McGraw-Hill Information Systems NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, Company, F. W. Dodge Division. and indexes for series mentioned in notes 3 and 7 may also be found in the Survey 4. Based on data in Employment and Earnings (U.S. Department of Labor). of Current Business. Series covers employees only, excluding personnel in the Armed Forces. Figures for industrial production for the last two months are preliminary and 5. Based on data in Survey of Current Business (U.S. Department of Com- estimated, respectively. merce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1983 1984 1983 1984 1983 1984 oeries Q2 Q3 Q4 Qlr Q2 Q3 Q4 Ql' Q2 Q3 Q4 Ql' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 144.5 151.8 155.5 159.8 195.5 196.4 197.3 198.4 73.9 77.3 78.8 80.5 2 Mining 112.3 116.1 121.0 124.2 165.3 165.4 165.5 165.7 67.9 70.2 73.1 75.0 3 Utilities 169.6 178.2 178.4 179.2 209.8 211.1 212.4 213.8 80.8 84.4 84.0 83.5 4 Manufacturing 145.2 152.8 156.5 161.0 196.6 197.5 198.4 196.5 73.8 77.4 78.9 80.7 5 Primary processing 145.2 152.8 156.4 160.5 194.8 195.3 195.8 196.4 74.6 78.3 79.9 81.6 6 Advanced processing 145.1 152.8 156.1 161.6 197.6 198.6 199.7 201.0 73.5 76.9 78.2 80.3 7 Materials 141.7 149.9 154.3 158.8 192.9 193.4 194.0 194.7 73.5 77.5 79.6 81.6 8 Durable goods 134.7 144.2 150.3 157.6 195.6 196.0 196.5 197.1 68.9 73.6 76.5 79.9 9 Metal materials 84.9 89.3 93.8 97.5 139.9 139.8 139.6 139.1 60.7 63.9 67.2 70.1 10 Nondurable goods 171.7 179.1 183.5 183.7 218.8 219.6 220.6 221.8 78.5 81.5 83.2 82.8 11 Textile, paper, and chemical 179.6 188.0 193.2 193.2 230.7 231.6 232.7 234.2 77.9 81.2 83.0 82.5 12 Paper 153.4 162.8 167.4 165.7 166.1 166.9 167.7 168.5 92.3 97.5 99.8 98.3 13 Chemical 219.4 227.8 235.0 236.5 296.6 298.3 300.1 302.3 74.0 76.4 78.3 78.2 14 Energy materials 121.5 127.4 127.8 131.2 154.3 154.7 155.3 155.8 78.7 82.3 82.3 84.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A43 2.11 Continued Previous cycle1 Latest cycle2 1983 1983 1984 SSeerriieess High Low High Low May Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ May Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 76.5 73.9 78.2 78.7 78.7 79.0 80.1 80.7 80.9 81.5 81.7 16 Mining 91.8 86.0 88.5 84.0 68.2 70.8 71.5 73.2 74.7 75.4 74.9 74.7 74.1 75.4 17 Utilities 94.9 82.0 86.7 83.8 80.9 84.8 83.3 83.0 85.7 84.8 82.5 84.0 83.6 83.8 18 Manufacturing 87.9 69.0 87.5 75.5 73.8 78.4 78.9 78.8 78.9 80.1 80.9 81.0 81.8 81.9 19 Primary processing 93.7 68.2 91.4 72.6 74.6 79.7 80.4 80.0 79.2 80.6 82.2 82.2 82.9 83.3 20 Advanced processing .... 85.5 69.4 85.9 77.0 73.4 77.8 77.9 78.0 78.6 80.0 80.4 80.4 81.2 81.2 21 Materials 92.6 69.3 88.9 74.2 73.5 78.6 79.5 79.6 79.6 80.6 81.9 82.2 82.9 83.3 22 Durable goods 91.4 63.5 88.4 68.4 68.9 75.2 76.1 76.5 77.0 78.5 80.5 80.8 82.0 82.2 23 Metal materials 97.8 68.0 95.4 59.4 61.0 65.5 68.0 66.8 66.8 67.3 71.1 71.8 73.2 74.4 24 Nondurable goods 94.4 67.4 91.7 77.5 78.7 82.9 84.1 83.8 81.6 81.9 83.0 83.6 84.1 84.5 25 Textile, paper, and chemical 95.1 65.4 92.3 75.5 78.1 82.6 84.1 83.7 81.2 81.5 82.8 83.1 83.6 84.0 26 Paper 99.4 72.4 97.9 89.8 92.9 99.0 99.4 101.3 98.8 99.3 99.0 96.7 100.8 n.a. 27 Chemical 95.5 64.2 91.3 70.7 74.0 77.8 79.7 79.0 76.2 76.7 78.6 79.4 79.4 n.a. 28 Energy materials 94.5 84.4 88.7 84.4 78.5 81.6 81.4 81.8 83.6 84.4 84.1 84.1 83.8 84.1 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 Oct. Nov/ Dec.' Jan.' Feb/ Mar.' Apr/ May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 172,272 174,450 176,414 176,990 177,151 177,325 177,733' 177,882 178,033 178,185 178,337 2 Labor force (including Armed Forces)1 110,812 112,383 113,749 114,077 114,235 114,340 114,415' 114,896 115,121 115,461 116,017 3 Civilian labor force 108,670 110,204 111,550 111,866 112,035 112,136 112,215' 112,693 112,912 113,245 113,803 Employment 4 Nonagricultural industries2 97,030 96,125 97,450 98,730 99,349 99,585 99,918' 100,496 100,859 101,009 101,899 5 Agriculture 3,368 3,401 3,383 3,240 3,257 3,356 3,271' 3,395 3,281 3,393 3,389 Unemployment 6 Number 8,273 10,678 10,717 9,896 9,429 9,195 9,026' 8,801 8,772 8,843 8,514 7 Rate (percent of civilian labor force) ... 7.6 9.7 9.6 8.8 8.4 8.2 8.0' 7.8 7.8 7.8 7.5 8 Not in labor force 61,460 62,067 62,665 62,913 62,916 62,985 63,318' 62,986 62,912 62,724 62,320 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 91,156 89,596 89,986 91,084 91,688' 92,026' 92,391' 92,846' 93,058' 93,456' 93,688 10 Manufacturing 20,170 18,853 18,678 19,064 19,018' 19,143' 19,254' 19,373' 19,466' 19,531' 19,557 11 Mining 1,132 1,143 1,021 1,044 967' 969' 975' 978' 978' 985' 993 12 Contract construction 4,176 3,911 3,949 4,060 4,073' 4,086' 4,154' 4,226' 4,151' 4,247' 4,306 13 Transportation and public utilities 5,157 5,081 4,943 5,019 5,043' 5,055' 5,095' 5,105' 5,112' 5,131' 5,141 14 Trade 20,551 20,401 20,508 20,666 21,149' 21,228' 21,32c 21,418' 21,487' 21,568' 21,613 15 Finance 5,301 5,340 5,456 5,503 5,530' 5,546' 5,573' 5,593' 5,613' 5,640' 5,650 16 Service 20,547 19,064 19,685 19,956 20,034' 20,130' 20,162' 20,278' 20,378' 20,449' 20,538 17 Government 16,024 15,803 15,747 15,775 15,874' 15,869' 15,858' 15,875' 15,873' 15,905' 15,890 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

A44 Domestic Nonfinancial Statistics • June 1984 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1983 1984 n pro- 11998833 por- avg. tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr .p Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.6 144.4 146.4 149.7 151.8 153.8 155.0 155.3 156.2 158.5 160.0 160.8 162.5 2 Products 60.71 149.2 146.2 148.1 150.9 153.2 154.9 155.6 155.8 157.4 159.7 160.4 161.1 162.6 3 Final products 47.82 147.1 144.5 146.4 149.0 150.7 152.1 152.7 153.2 155.2 157.5 158.0 158.6 160.3 4 Consumer goods 27.68 151.7 150.4 152.4 154.8 156.3 157.4 156.9 156.1 157.7 159.5 159.4 160.0 161.7 5 Equipment 20.14 140.8 136.5 138.2 141.0 143.1 144.9 147.0 149.1 151.8 154.9 156.1 156.6 158.4 6 Intermediate products 12.89 156.6 152.2 154.5 158.1 162.2 165.3 166.5 165.5 165.4 167.8 169.0 170.3 171.3 7 Materials 39.29 145.2 141.7 143.7 147.8 149.7 152.3 154.0 154.5 154.5 156.6 159.4 160.5 162.3 Consumer goods 8 Durable consumer goods 7.89 147.5 145.5 149.2 152.9 154.2 157.4 156.7 155.9 158.6 163.4 162.5 163.0 162.4 9 Automotive products 2.83 158.2 152.2 160.0 167.0 168.1 172.9 171.3 171.5 178.4 184.5 182.1 183.8 178.9 10 Autos and utility vehicles 2.03 134.0 124.9 135.4 145.4 147.0 153.1 149.2 149.2 157.8 163.3 162.2 163.8 156.7 11 Autos 1.90 117.4 107.4 118.3 129.8 132.0 135.0 129.6 129.4 137.4 140.7 140.4 142.4 134.5 12 Auto parts and allied goods .80 219.6 221.5 222.6 221.9 221.8 223.1 227.4 228.2 230.7 238.4 232.6 234.7 235.3 13 Home goods 5.06 141.4 141.8 143.2 144.9 146.4 148.7 148.4 147.2 147.5 151.5 151.5 151.3 153.2 14 Appliances, A/C, and TV 1.40 116.4 112.8 114.4 116.2 121.2 125.2 129.2 127.0 126.3 136.4 135.1 134.4 137.1 15 Appliances and TV 1.33 120.1 116.1 118.4 119.7 125.0 129.7 133.3 131.3 130.2 140.0 138.6 138.0 139.8 16 Carpeting and furniture 1.07 178.1 181.9 185.6 187.3 187.5 186.3 185.5 182.7 184.0 183.1 178.7 180.2 185.1 17 Miscellaneous home goods 2.59 139.9 140.9 141.3 143.0 143.2 145.9 143.6 143.4 143.9 146.7 149.1 148.5 148.7 18 Nondurable consumer goods 19.79 153.4 152.3 153.6 155.6 157.1 157.5 157.1 156.1 157.3 157.9 158.2 158.8 161.4 19 4.29 20 Consumer staples 15.50 163.7 162.8 164.3 166.1 168.0 168.0 167.2 165.4 166.0 166.5 166.9 167.7 170.3 71 8.33 153.5 153.2 155.9 156.6 156.3 154.9 156.0 154.5 155.4 156.5 156.8 157.1 22 Nonfood staples 7.17 175.4 174.0 174.1 177.2 181.6 183.2 180.3 178.1 178.3 178.2 178.7 179.9 182.4 23 Consumer chemical products .... 2.63 231.0 227.8 229.0 233.8 239.7 241.5 238.7 232.4 229.9 231.6 231.9 230.9 234.8 24 Consumer paper products 1.92 132.7 128.6 130.1 132.6 137.4 138.2 137.6 136.6 137.2 138.8 140.3 141.8 143.6 25 Consumer energy products 2.62 150.9 153.4 151.2 153.2 155.7 157.7 153.0 154.1 156.5 153.4 153.3 156.7 158.3 2266 11..4455 117733..44 117744..33 117700..55 117733..22 117799..99 118822..88 117744..55 117755..88 118855..22 118800..00 117722..88 117777..77 Equipment 21 Business 12.63 153.3 147.7 150.2 153.3 156.6 158.8 161.3 164.1 167.3 170.7 171.9 172.3 173.8 28 Industrial 6.77 120.4 114.5 116.3 119.9 124.3 125.6 126.6 128.6 130.8 133.7 134.6 135.0 135.9 29 Building and mining 1.44 159.3 146.2 148.7 154.4 159.2 160.8 166.9 175.8 185.3 185.1 182.0 174.9 172.1 30 Manufacturing 3.85 107.1 102.5 105.0 108.9 113.3 115.0 114.6 114.3 115.1 119.7 120.9 124.7 126.8 31 Power 1.47 117.1 115.0 114.1 114.6 119.0 118.8 118.5 119.4 118.4 120.0 123.8 122.7 124.3 32 Commercial transit, farm 5.86 191.3 186.1 189.5 191.9 194.0 196.7 201.3 205.1 209.6 213.3 215.1 215.5 217.5 33 Commercial 3.26 273.2 265.0 270.9 276.0 277.4 281.2 288.1 292.5 298.9 303.2 305.9 306.7 309.9 34 Transit 1.93 95.2 92.6 93.2 92.0 95.9 97.6 100.0 103.2 106.0 110.1 110.1 110.2 110.3 35 Farm .67 69.5 71.3 70.4 70.8 70.8 71.0 70.9 73.5 73.5 73.6 75.7 75.0 76.8 36 Defense and space 7.51 119.9 117.6 118.0 120.4 120.2 121.8 122.9 124.0 125.7 128.3 129.5 130.0 132.7 Intermediate products 37 Construction supplies 6.42 142.5 138.4 142.1 145.8 149.0 151.1 152.3 151.6 151.5 155.5 156.6 159.3 160.4 38 Business supplies 6.47 170.7 166.0 166.8 170.4 175.3 179.3 180.6 179.4 179.3 180.1 181.3 181.3 182.1 39 Commercial energy products 1.14 184.3 183.1 181.4 185.2 186.9 190.2 187.0 187.6 188.0 192.1 191.6 187.2 188.0 Materials 40 Durable goods materials 20.35 138.6 134.7 137.0 141.1 144.2 147.2 149.4 150.3 151.3 154.6 158.6 159.6 162.3 41 Durable consumer parts 4.58 113.6 108.5 109.5 115.6 119.9 123.1 124.9 125.0 127.9 131.6 133.1 133.0 134.2 42 Equipment parts 5.44 176.4 170.6 175.8 180.8 183.6 186.0 188.3 192.5 193.4 198.2 204.0 206.7 211.3 43 Durable materials n.e.c 10.34 129.9 127.5 128.7 131.5 134.2 137.4 139.8 139.3 139.5 141.8 146.0 146.6 148.9 44 Basic metal materials 5.57 90.2 89.3 89.6 90.8 93.1 94.5 98.0 97.1 96.9 97.7 103.0 103.5 105.6 45 Nondurable goods materials 10.47 174.5 172.1 174.3 177.0 178.0 183.4 185.3 184.8 180.3 181.2 184.1 185.8 187.7 46 Textile, paper, and chemical materials 7.62 182.6 180.2 182.8 186.1 186.4 192.0 195.4 194.7 189.6 190.5 193.9 195.3 197.2 47 Textile materials 1.85 116.2 114.6 116.0 119.0 121.5 123.1 124.0 121.9 121.3 119.9 119.9 121.6 121.1 48 Paper materials 1.62 158.2 154.4 155.0 161.1 161.8 165.4 166.3 169.8 166.0 167.0 166.8 163.3 170.6 49 Chemical materials 4.15 221.7 219.6 223.6 225.9 225.1 233.1 238.7 237.0 229.3 231.3 237.6 240.7 241.6 50 Containers, nondurable 1.70 167.9 164.3 166.1 166.5 170.6 179.1 175.9 176.6 173.0 173.5 173.0 175.5 178.1 51 Nondurable materials n.e.c 1.14 130.5 129.7 129.9 131.3 133.0 132.6 131.9 130.6 129.5 130.5 135.2 138.2 138.6 52 Energy materials 8.48 124.8 121.1 121.8 127.7 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.2 131.0 53 Primary energy 4.65 114.7 113.8 112.6 115.4 113.9 112.8 114.1 115.5 117.6 119.3 121.3 119.6 119.2 54 Converted fuel materials 3.82 137.0 129.9 132.9 142.7 145.2 142.8 141.2 141.1 145.1 145.8 142.8 145.4 145.3 Supplementary groups 55 Home goods and clothing 9.35 129.9 112299..22 130.2 132.3 133.3 135.2 135.5 135.9 137.6 140.1 140.3 140.1 142.0 56 Energy, total 12.23 135.9 133.8 133.6 138.5 139.4 139.0 137.7 138.5 141.1 141.6 141.4 141.9 142.1 57 Products 3.76 161.0 162.4 160.4 162.9 165.2 167.5 163.3 164.3 166.0 165.1 164.9 165.9 167.3 58 Materials 8.48 124.8 121.1 121.8 127.7 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.2 131.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A45 2.13 Continued 1967 1983 1984 GGrroouuppiinngg c S o I d C e por- 1 a 9 v 8 g 3 . tion May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. Apr.P Mayf Index (1967 = 100) MAJOR INDUSTRY 1 12.05 142.9 139.7 139.6 143.8 146.0 146.5 145.8 147.2 151.5 151.4 148.9 150.4 149.6 151.2 1 6.36 116.6 112.8 112.6 115.0 116.1 117.1 118.3 121.1 123.7 124.8 124.1 123.8 122.8 125.0 5.69 172.4 169.7 169.8 176.0 179.3 179.3 176.5 176.3 182.5 181.0 176.5 180.0 179.5 180.5 4 3.88 196.0 192.9 192.0 200.9 205.4 204.5 200.7 200.2 208.0 206.8 200.0 204.6 204.0 205.3 s 87.95 148.2 145.1 147.4 150.6 152.8 155.1 156.2 156.4 156.8 159.5 161.4 162.1 164.1 164.7 6 35.97 168.1 165.4 167.8 170.6 172.9 174.6 175.6 174.8 173.9 175.2 177.2 177.8 179.9 180.2 7 5511..9988 113344..55 131.0 133.2 136.8 138.8 141.6 142.8 143.6 145.0 148.6 150.5 151.2 153.2 154.0 Mining 8 Metal 10 .51 80.9 84.4 82.9 82.5 80.9 78.7 81.0 84.6 82.3 89.4 97.4 110000..00 9999..88 9 Coal 11.12 .69 136.3 125.6 124.6 139.9 141.2 140.5 142.7 144.8 145.2 151.5 163.2 164.0 151.4 153.4 in Oil and gas extraction 13 4.40 116.6 112.5 112.6 113.9 114.7 116.3 117.3 119.8 123.4 123.1 119.6 118.1 118.2 120.8 N Stone and earth minerals 14 .75 122.8 122.5 121.7 121.2 125.0 126.5 127.4 132.2 133.9 134.8 133.0 137.0 139.5 Nondurable manufactures i? Foods 20 8.75 156.4 155.6 157.7 159.9 159.3 158.2 157.6 157.1 115577..77 115599..44 116600..00 116611..22 N Tobacco products 21 .67 112.1 112.9 120.0 112.9 117.1 112.7 109.1 109.5 112.3 116.4 110.9 111.8 14 Textile mill products 22 2.68 140.8 139.6 141.8 146.7 147.4 148.7 148.7 145.8 145.0 143.9 142.3 143.5 144.9 23 3 31 16 Paper and products 26 3.21 164.3 161.5 163.0 165.1 168.6 170.4 171.5 172.1 170.1 172.3 176.6 174.5 175.1 176.2 17 Printing and publishing 27 4.72 152.5 145.2 147.4 152.0 157.8 161.7 162.7 162.0 161.7 163.4 164.8 165.2 166.0 165.4 18 Chemicals and products 28 7.74 215.0 211.0 214.7 218.3 220.3 224.1 228.4 225.6 221.1 221.5 224.8 225.7 228.6 19 Petroleum products 29 1.79 120.3 123.8 123.0 124.3 123.2 125.1 123.6 125.4 114.4 118.8 127.6 127.0 129.3 130.1 20 Rubber and plastic products 30 2.24 291.9 288.0 293.8 296.1 306.9 310.9 310.8 309.1 314.4 317.2 318.5 323.8 328.7 21 Leather and products 31 .86 61.9 59.6 60.1 62.3 64.4 64.2 64.0 63.2 66.0 61.4 63.9 63.8 64.4 Durable manufactures 22 Ordnance, private and government . 19.91 3.64 95.4 92.6 93.3 95.2 96.8 98.0 98.8 99.3 9999..88 9999..77 99.6 110000..66 110011..55 110022..00 Lumber and products 24 1.64 137.2 135.8 137.4 141.3 141.6 142.3 141.7 141.0 143.8 146.0 145.6 149.3 150.0 74 Furniture and fixtures 25 1.37 170.5 169.6 173.1 175.2 179.0 180.7 181.0 177.5 177.9 183.8 185.6 185.0 189.3 25 Clay, glass, stone products 32 2.74 143.4 139.2 141.7 145.8 147.9 151.7 151.9 152.7 153.8 157.8 160.4 160.2 161.5 26 Primary metals 33 6.57 85.4 84.9 84.8 85.5 87.5 90.6 95.3 92.2 90.4 , 93.2 98.4 97.6 99.9 100.9 77 Iron and steel 331.2 4.21 71.5 69.5 69.7 71.8 75.1 78.2 84.3 79.2 74.1 80.7 86.0 84.4 86.7 78 Fabricated metal products 34 5.93 120.2 115.5 118.5 122.7 126.0 127.4 26.9 128.5 129.2 131.7 132.8 134.9 136.7 137.0 79 Nonelectrical machinery 35 9.15 150.6 146.1 149.5 154.2 157.3 158.3 159.2 161.8 164.3 169.5 170.9 171.8 175.5 176.2 30 Electrical machinery 36 8.05 185.5 180.1 182.4 188.3 189.2 195.8 198.4 200.1 201.5 206.2 209.9 210.9 214.5 216.1 31 Transportation equipment 37 9.27 117.8 113.8 116.6 119.7 121.1 124.7 125.5 127.3 130.8 134.9 135.2 135.4 135.0 135.3 32 Motor vehicles and parts 371 4.50 137.1 130.4 136.2 142.3 144.3 150.9 150.9 152.9 158.9 166.3 164.4 165.8 162.6 163.0 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 99.6 98.1 98.1 98.5 99.2 100.0 101.6 103.2 104.3 105.3 107.7 106.8 109.0 109.3 34 Instruments 38 2.11 158.7 156.0 156.1 159.3 161.6 163.6 163.0 163.0 164.6 167.8 168.6 169.7 171.9 172.9 35 Miscellaneous manufactures 39 1.51 146.2 149.0 151.0 153.7 153.1 151.7 149.1 148.9 149.3 151.1 152.0 152.4 153.5 153.1 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 507.4 612.6 601.8 610.5 620.5 626.6 637.0 637.8 638.4 645.4 655.1 656.9 660.2 664.7 668.7 37 390.9 472.6 465.6 471.8 478.2 481.8 489.9 490.7 490.8 497.8 505.3 505.0 507.9 511.9 515.5 38 277.5 328.7 325.6 330.4 333.7 336.7 341.6 340.2 338.3 341.9 345.3 345.3 346.8 349.1 350.5 39 113.4 144.0 140.0 141.4 144.5 145.1 148.4 150.5 152.5 155.9 160.0 159.7 161.1 162.8 165.0 4400 111166..66 114400..00 113366..22 138.7 114422..33 144.8 147.1 147.1 147.6 147.6 149.8 151.9 152.3 152.8 153.2 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • June 1984 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1983 1984 IItteemm 11998811 11998822 11998833 July Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 986 1,001 1,605' 1,752' 1,671' 1,540' 1,650' 1,649' 1,602' 1,799' 1,902 1,727 1,725 2 1-family 564 546 902' 930' 90C 864' 905' 919' 913' 989' 1,083 974 936 3 2-or-more-family 421 454 703' 822' 771' 676' 745' 730' 689' 8icy 819 753 789 4 Started 1,084 1,062 1,703 1,793 1,873 1,679 1,672 1,730 1,694 1,980 2,262 1,645 1,963 5 1-family 705 663 1,068 1,048 1,124 1,038 1,017 1,074 1,021 1,301 1,463 1,068 1,148 6 2-or-more-family 379 400 636 745 749 641 655 656 673 679 799 577 815 7 Under construction, end of period1 682 720 1,003' 962' 979' 991' 994' 1,011 1,020 1,032' 1,039 1,076 8 1-family 382 400 524' 538' 544' 545' 542' 543 542 552' 561 579 9 2-or-more-family 301 320 479' 424' 434' 446' 452' 468 478 48(K 479 497 10 Completed 1,266 1,006 1,391' 1,427' 1,716' 1,512' 1,567 1,445 1,489 1,606' 1,562 1,558 n a. 11 1-family 818 631 924 983' 1,029' 1,006' 1,028 994 986 1,014' 1,031 1,001 12 2-or-more-family 447 374 466 444' 687' 506' 539 451 503 592' 531 557 13 Mobile homes shipped 241 24 <Y 295 296 307 305 308 313 310 314 293 287 Merchant builder activity in 1-family units 14 Number sold 436 413 622 606 558 597 624 636 755 681' 697 667 634 15 Number for sale, end of period1 278 255 303 289 296 299 301 304 300 302' 304 322 329 Price (thousands of dollars)2 Median 16 Units sold 68.8 69.3 75.5 75.2 76.8 81.0 75.9 75.9 75.9 76.2' 78.6 78.8 80.3 17 Units sold 83.1 83.8 89.9 89.2 91.3 97.8 89.5 91.4 91.7 92.2 93.0 96.5 95.3 EXISTING UNITS (1-family) 18 Number sold 2,418 1,991 2,719 2,780 2,760 2,770 2,720 2,700 2,850 2,890 2,910 3,020 3,070 Price of units sold (thousands of dollars)2 19 Median 66.1 67.7 69.8 71.8 71.5 69.9 69.8 70.4 69.9 71.3 71.8 72.2 72.6 20 Average 78.0 80.4 82.5 84.2 84.7 82.8 83.0 83.4 82.9 84.8 84.9 85.1 8 6.3 Value of new construction5 (millions of dollars) CONSTRUCTION 21 Total put in place 239,418 232,048 262,668 274,205 281,997 285,384 265,626 265,780 265,319 275,676 292,175 302,019 302,468 ?? Private 186,069 180,979 212,287 222,759 228,529 232,561 216,976 214,920 215,497 224,963 239,373 246,865 248,168 73 Residential 86,567 74,809 110,708 122,297 127,136 129,142 116,478 110,385 107,973 116,899 128,457 133,321 131,931 24 Nonresidential, total 99,502 106,170 101,579 100,462 101,393 103,419 100,498 104,535 107,524 108,064 110,916 113,544 116,237 Buildings 25 Industrial 17,031 17,346 13,143 12,227 14,227 13,166 10,532 12,280 12,921 13,091 13,921 14,470 13,382 26 Commercial 34,243 37,281 36,267 35,871 36,277 36,901 36,118 38,081 38,955 40,874 42,735 45,241 47,442 27 Other 9,543 10,507 11,705 11,250 12,038 12,564 12,279 12,001 12,121 13,062 13,077 13,357 13,181 28 Public utilities and other 38,685 41,036 40,464 41,114 38,851 40,788 41,569 42,173 43,527 41,037 41,183 40,476 42,232 29 Public 53,346 51,068 50,380 51,446 53,469 52,823 48,649 50,860 49,821 50,713 52,802 55,154 54,300 30 Military 1,966 2,205 2,536 2,655 2,258 2,705 2,458 3,192 2,977 2,821 2,716 3,227 3,245 31 Highway 13,599 13,521 14,178 14,091 15,906 15,89 6 14,644 14,360 14,780 13,738 14,928 16,585 16,653 32 Conservation and development 5,300 5,029 4,823 5,608 5,210 5,048 4,253 3,902 4,896 4,259 4,639 4,518 4,577 33 Other 32,481 30,313 28,843 29,092 30,095 29,174 27,294 29,406 27,168 29,895 30,519 30,824 29,825 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 A47 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted C m h o a n n t g h e s fr e o a m rl ie 1 r 2 Change ( a f t r o a m nn 3 u a m l o r n at t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm AAAppprrr... 1983 1984 1983 1984 111999888444 11998833 11998844 (((111999666777 AApprr.. AApprr.. === 111000000)))''' June Sept. Dec/ Mar/ Dec/ Jan. Feb. Mar. Apr. CONSUMER PRICES2 1 AU items 3.9 4.5 5.4 4.5 4.0 5.0 .2 .6 .4 .2 .5 308.8 ? Food 2.8 3.6 1.7 1.1 4.3 9.0 .4 1.6 .7 -.1 .0 302.3 3 Energy items 3.6 2.8 19.1 3.4 -1.7 -1.4 -.3 -.4 .2 -.2 .7 421.3 4 All items less food and energy 4.3 5.0 4.2 5.9 4.9 5.1 .3 .5 .3 .4 .5 298.3 5 Commodities 5.7 4.8 3.2 6.8 4.6 3.4 .3 .2 .2 .4 .6 251.8 6 Services 3.2 5.2 4.8 5.2 5.3 5.9 .3 .7 .4 .4 .5 352.2 PRODUCER PRICES 7 Finished goods 2.1 2.9 2.6 2.0 1.1 6.0 .2 .6 .4 .5 .0 291.4 8 Consumer foods 1.1 4.6 -.9 2.5 5.8 17.4 .7 2.6R .7 .8 -.6 275.0 9 Consumer energy -3.4 .7 12.9 -1.3 -10.4 -7.2 -I.I -l.C .4 -1.2 .7 754.8 10 Other consumer goods 3.5 2.7 2.2 2.7 1.5 4.7 .1 .V .2 .9 -.1 245.1 11 Capital equipment 3.2 2.8 1.7 2.1 1.8 4.3 .3 .V .5 .3 .3 294.1 12 Intermediate materials3 -.5 3.6 2.8 4.0 2.5 2.6 .2 .0 .2 .5 .1 324.8 13 Excluding energy .8 3.5 2.8 3.6 4.1 3.5 .4 .2 .6 .1 303.5 Crude materials 14 Foods .9 5.3 -5.8 15.6 12.1 13.7 1.5 2.3R -3.1 4.2 --11..22 227700..44 15 Energy 1.9 -1.2 -5.1 -1.7 -2.3 -1.3 .2 .4 .0 -.8 .4 783.9 16 Other -.9 13.0 49.1 16.6 2.4 -9.2 .4 -3.4R .8 .2 2.9 276.5 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

A48 Domestic Nonfinancial Statistics • June 1984 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1983 1984 AAccccoouunntt 11998811 11998822 11998833 Ql Q2 Q3 Q4 Ql GROSS NATIONAL PRODUCT 1 Total 2,954.1 3,073.0 3,310.5 3,171.5 3,272.0 3,362.2 3,436.2 3,541.6 By source 2 Personal consumption expenditures 1,857.2 1,991.9 2,158.0 2,073.0 2,147.0 2,181.1 2,230.9 2,287.8 3 Durable goods 236.1 244.5 279.4 258.5 277.7 282.8 298.6 314.9 4 Nondurable goods 733.9 761.0 804.1 777.1 799.6 814.8 825.0 843.3 5 Services 887.1 986.4 1,074.5 1,037.4 1,069.7 1,083.5 1,107.3 1,129.6 6 Gross private domestic investment 474.9 414.5 471.9 404.1 450.1 501.1 532.5 600.9 / Fixed investment 456.5 439.1 478.4 443.5 464.6 492.5 512.8 531.6 8 Nonresidential 352.2 348.3 348.4 332.1 336.3 351.0 374.0 384.4 9 Structures 133.4 141.9 131.1 132.9 127.4 130.9 133.3 139.5 10 Producers' durable equipment 218.8 206.4 217.2 199.3 208.8 220.2 240.7 244.9 11 Residential structures 104.3 90.8 130.0 111.3 128.4 141.5 138.8 147.3 12 Nonfarm 99.8 86.0 124.9 106.7 123.3 136.3 133.5 142.1 13 Change in business inventories 18.4 -24.5 -6.4 -39.4 -14.5 8.5 19.6 69.3 14 Nonfarm 10.9 -23.1 -2.8 -39.0 -10.3 18.4 19.7 48.2 15 Net exports of goods and services 26.3 17.4 -9.0 17.0 -8.5 -18.3 -26.1 -54.6 16 Exports 368.8 347.6 335.4 326.9 327.1 341.1 346.5 355.8 17 Imports 342.5 330.2 344.4 309.9 335.6 359.4 372.6 410.4 18 Government purchases of goods and services 595.7 649.2 689.5 677.4 683.4 698.3 699.0 707.5 19 Federal 229.2 258.7 274.8 273.5 273.7 278.1 274.1 272.4 20 State and local 366.5 390.5 414.7 404.0 409.7 420.2 424.9 435.1 By major type of product 21 Final sales, total 2,935.6 3,097.5 3,316.9 3,210.9 3,286.6 3,353.7 3,416.6 3,472.3 22 Goods 1,291.8 1,280.8 1,366.5 1,292.2 1,346.8 1,388.9 1,438.2 1,496.2 23 Durable 528.0 500.8 548.7 482.7 536.8 568.9 606.4 612.9 24 Nondurable 763.9 780.1 817.8 809.5 810.0 820.0 831.8 883.3 25 Services 1,374.2 1,511.2 1,635.6 1,588.4 1,623.4 1,651.0 1,679.6 1,710.7 26 Structures 288.0 281.0 308.4 290.9 301.9 322.3 318.5 334.6 27 Change in business inventories 18.4 -24.5 -6.4 -39.4 -14.5 8.5 19.6 69.3 28 Durable goods 3.6 -15.5 -3.9 -38.2 -8.9 13.1 18.3 19.6 29 Nondurable goods 14.8 -9.1 -2.5 -1.2 -5.7 -4.5 1.4 49.7 30 MEMO: Total GNP in 1972 dollars 1,513.8 1,485.4 1,535.3 1,490.1 1,525.1 1,553.4 1,572.5 1,606.0 NATIONAL INCOME 31 Total 2,373.0 2,450.4 2,650.2 2,528.5 2,612.8 2,686.9 2,772.4 2,878.4 32 Compensation of employees 1.769.2 1,865.7 1,990.2 1,923.7 1,968.7 2,011.8 2,056.6 2,113.4 H Wages and salaries 1.493.2 1,568.1 1,664.1 1,610.6 1,647.1 1,681.5 1,717.3 1,756.6 34 Government and government enterprises 284.4 306.0 326.2 319.2 323.3 328.4 332.1 339.4 35 Other 1,208.8 1,262.1 1,338.4 1,291.5 1,323.8 1,353.1 1,385.2 1,417.1 36 Supplement to wages and salaries 276.0 297.6 326.1 313.1 321.6 330.3 339.4 356.8 37 Employer contributions for social insurance 132.5 140.9 152.7 148.8 151.5 153.9 156.7 167.9 38 Other labor income 143.5 156.6 173.4 164.3 170.1 176.4 182.7 189.0 39 Proprietors' income1 120.2 109.0 128.5 120.6 127.2 126.7 139.4 169.0 40 Business and professional1 89.7 87.4 107.6 98.4 106.2 111.2 114.5 121.2 41 Farm1 30.5 21.5 20.9 22.2 21.0 15.5 25.0 47.9 42 Rental income of persons2 41.4 49.9 54.8 54.1 54.8 53.9 56.2 57.0 43 Corporate profits' 192.3 164.8 229.1 181.8 218.2 248.4 268.2 277.5 44 Profits before tax3 227.0 174.2 207.5 169.7 203.3 229.1 228.2 240.6 45 Inventory valuation adjustment -23.6 -8.4 -9.2 -1.7 -10.6 -18.3 -6.3 -12.9 46 Capital consumption adjustment -11.0 -1.1 30.8 13.9 25.6 37.6 46.2 49.8 47 Net interest 249.9 261.1 247.5 248.3 243.8 246.1 251.9 261.5 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 A49 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1983 1984 AAccccoouunntt 11998811 11998822 11998833 Ql Q2 Q3 Q4 Ql PERSONAL INCOME AND SAVING 1 Total personal income 2,435.0 2,578.6 2,742.1 2,657.7 2,713.6 2,761.9 2,835.2 2,925.4 2 Wage and salary disbursements 1,493.2 1,568.1 1,664.6 1,610.7 1,648.4 1,681.9 1,717.3 1,756.4 Commodity-producing industries 509.5 509.2 529.7 508.6 522.2 537.8 550.0 567.4 4 Manufacturing 385.3 383.8 402.8 385.4 397.4 409.2 419.0 432.9 5 Distributive industries 361.6 378.8 397.2 386.4 394.3 398.9 409.3 415.1 6 Service industries 337.7 374.1 411.5 396.4 407.3 416.4 425.8 434.7 7 Government and government enterprises 284.4 306.0 326.2 319.2 324.6 328.8 332.1 339.3 8 Other labor income 143.5 156.6 173.4 164.3 170.1 176.4 182.7 189.0 9 Proprietors' income1 120.2 109.0 128.5 120.6 127.2 126.7 139.4 169.0 10 Business and professional1 89.7 87.4 107.6 98.4 106.2 111.2 114.5 121.2 11 30.5 21.5 20.9 22.2 21.0 15.5 25.0 47.9 17 Rental income of persons2 41.4 49.9 54.8 54.1 54.8 53.9 56.2 57.0 N 62.8 66.4 70.5 68.8 69.3 70.9 72.9 75.1 14 Personal interest income 341.3 366.2 366.3 357.2 357.1 369.9 381.1 395.8 15 Transfer payments 337.2 374.6 403.6 398.5 405.3 402.6 408.1 411.8 16 Old-age survivors, disability, and health insurance benefits.... 182.0 204.5 222.8 217.4 221.1 223.8 228.8 233.5 17 LESS: Personal contributions for social insurance 104.6 112.0 119.5 116.5 118.6 120.5 122.5 128.7 18 EQUALS: Personal income 2,435.0 2,578.6 2,742.1 2,657.7 2,713.6 2,761.9 2,835.2 2,925.4 19 LESS: Personal tax and nontax payments 387.4 402.1 406.5 401.8 412.6 400.1 411.4 421.4 20 EQUALS: Disposable personal income 2,047.6 2,176.5 2,335.6 2,255.9 2,301.0 2,361.7 2,423.9 2,504.0 21 LESS: Personal outlays 1,912.4 2,051.1 2,222.0 2,134.2 2,209.5 2,245.9 2,298.3 2,357.7 22 EQUALS: Personal saving 135.3 125.4 113.6 121.7 91.5 115.8 125.6 146.3 MEMO Per capita (1972 dollars) 73 Gross national product 6,584.1 6,399.3 6,552.8 6,381.5 66,,551188..00 6,622.5 66,,668877..55 66,,881155..77 24 Personal consumption expenditures 4,161.5 4,179.8 4.316.7 4,225.7 4,319.1 4,331.4 4,389.8 4,454.4 25 Disposable personal income 4,587.0 4,567.0 4,672.0 4,599.0 4,629.0 4,690.0 4,769.0 4,875.0 26 Saving rate (percent) 6.6 5.8 4.9 5.4 4.0 4.9 5.2 5.8 GROSS SAVING 27 Gross saving 483.8 405.8 439.6 398.5 420.6 455.4 484.0 532.2 78 Gross private saving 509.6 521.6 569.9 541.5 535.0 587.2 615.7 642.2 29 Personal saving 135.3 125.4 113.6 121.7 91.5 115.8 125.6 146.3 30 Undistributed corporate profits1 44.8 37.0 78.9 48.9 70.1 89.7 107.0 107.1 31 Corporate inventory valuation adjustment -23.6 -8.4 -9.2 -1.7 -10.6 -18.3 -6.3 -12.9 Capital consumption allowances 3? 202.9 222.0 231.6 228.3 222299..88 233.1 223355..22 223388..55 33 126.6 137.2 145.7 142.6 143.5 148.6 148.0 150.2 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 -130.2 -142.9 -114.4 -131.8 -131.8 -110.0 36 -62.2 -147.1 -181.6 -183.3 -166.1 -187.3 -189.8 -170.9 37 State and local 35.3 31.3 51.4 40.4 51.7 55.5 58.1 60.9 38 Capital grants received by the United States, net 1.1 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 478.9 406.2 437.4 397.4 417.1 457.9 477.1 521.9 40 Gross private domestic 474.9 414.5 471.9 404.1 450.1 501.1 532.5 600.9 41 4.0 -8.3 -34.6 -6.7 -33.0 -43.2 -55.3 -79.1 42 Statistical discrepancy -4.9 .5 -2.3 -1.2 -3.5 2.5 -6.7 -10.4 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

A50 International Statistics • June 1984 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted. 1982 1983 Item credits or debits 11998811 11998822 1983^ Q4 Ql Q2 Q3 Q4P 1 Balance on current account 44,,559922 --1111,,221111 --4400,,777766 -6,621 -3,665 -9,747 -12,074 -15,291 2 Not seasonally adjusted -5,546 -3,395 -8,898 -14,101 -14,382 3 Merchandise trade balance2 -28,067 -36,389 -60,550 -11,354 -8,856 -14,705 -18,178 -18,811 4 Merchandise exports 237,019 211,217 200,203 48,344 49,350 48,757 50,429 51,667 5 Merchandise imports -265,086 -247,606 -260,753 -59,698 -58,206 -63,462 -68,607 -70,478 6 Military transactions, net -1,355 179 483 -26 516 117 -132 -17 7 Investment income, net3 33,484 27,304 23,581 6,008 5,036 5,630 6,881 6,032 8 Other service transactions, net 7,462 5,729 4,309 1,182 1,200 1,034 1,470 604 9 Remittances, pensions, and other transfers -2,382 -2,621 -2,631 -661 -608 -636 -662 -724 10 U.S. government grants (excluding military) -4,549 -5,413 -5,967 -1,770 -953 -1,187 -1,453 -2,375 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -5,078 -5,732 -4,897 -934 -1,053 -1,162 -1,206 -1,476 1 1 3 2 Ch G a o n l g d e in U.S. official reserve assets (increase, -) -5,175 0 -4,965 0 -1,196 0 -1,949 0 -787 0 1 0 6 529 0 -953 0 14 Special drawing rights (SDRs) -1,823 -1,371 -66 -297 -98 -303 -209 545 15 Reserve position in International Monetary Fund -2,491 -2,552 -4,434 -732 -2,139 -212 -88 -1,996 16 Foreign currencies -861 -1,041 3,304 -920 1,450 531 826 498 17 Change in U.S. private assets abroad (increase, -)3 -100,348 -107,348 -43,204 -16,670 -19,793 570 -8,449 -15,532 18 Bank-reported claims -83,851 -109,346 -24,966 -17,511 -15,935 5,166 -2,025 -12,172 19 Nonbank-reported claims -1,181 6,976 -3,146 2,337 -2,374 -440 -332 n.a. 20 U.S. purchase of foreign securities, net -5,636 -7,986 -7,484 -3,527 -1,808 -3,222 -1,543 -912 21 U.S. direct investments abroad, net3 -9,680 3,008 -7,608 2,031 324 -934 -4,549 -2,448 22 Change in foreign official assets in the United States (increase, +) 5,430 3,172 6,083 1,661 49 1,973 -2,581 6,642 23 U.S. Treasury securities 4,983 5,759 7,140 4,346 3,008 1,955 -538 2,715 24 Other U.S. government obligations 1,289 -670 -464 -556 -371 -170 -363 440 25 Other U.S. government liabilities4 -28 504 318 130 -270 403 207 -22 26 Other U.S. liabilities reported by U.S. banks -3,479 -2,054 877 -1,717 -1,939 611 -1,425 3,630 27 Other foreign official assets5 2,665 -367 -1,788 -542 -379 -826 -462 -121 28 Change in foreign private assets in the United States (increase, +)3 75,248 84,693 76,935 9,856 16,404 8,984 22,028 29,521 29 U.S. bank-reported liabilities 42,154 64,263 51,295 2.823 10,588 919 15,068 24,720 30 U.S. nonbank-reported liabilities 942 -3,104 -1,060 20 -2,136 134 942 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,982 7,004 8,599 2,257 2,912 3,072 1,011 1,604 32 Foreign purchases of other U.S. securities, net 7,171 6,141 8,587 1,975 2,986 2,628 1,842 1,132 33 Foreign direct investments in the United States, net3 21,998 10,390 9,514 2,781 2,054 2,231 3,165 2,065 34 Allocation of SDRs 1,093 0 0 0 0 0 0 0 35 Discrepancy 2244,,223388 4411,,339900 77,,005544 14,657 8,845 -634 1,753 -2,911 36 Owing to seasonal adjustments 1,042 -200 802 -1,361 758 37 Statistical discrepancy in recorded data before seasonal adjustment 24,238 41,390 7,054 13,615 9,045 -1,436 3,114 -3,669 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -5,175 -4,965 -1,196 -1,949 -787 16 529 -953 39 Foreign official assets in the United States (increase, +) 5,458 2,668 5,765 1,531 319 1,570 -2,788 6,664 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 13,581 7,420 -8,591 -1,162 -1,397 -3,433 -2,104 -1,657 , 41 Transfers under military grant programs (excluded from ' lines 4, 6, and 10 above) 680 644 209 158 42 30 49 88 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 A51 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1983 1984 IItteemm 11998811 11998822 11998833 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 233,677 212,193 200,486 17,033 17,063 17,298 18,326 17,212 17,727 17,521 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 261,305 243,952 258,048 24,333 23,115 22,976 26,586 26,147 26,771 28,368 3 Trade balance -27,628 -31,759 -57,562 -7,300 -6,052 -5,678 -8,260 -8,935 -9,044 -10,846 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 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Total 26,756 30,075 33,958 33,655 33,747 33,887 34,820 34,975 34,585 34,713 2 Gold stock, including Exchange Stabilization Fund1 11,160 11,151 11,148 11,123 11,121 11,120 11,116 11,111 11,107 11,104 3 Special drawing rights2 3 2,610 4,095 5,250 5,735 5,025 5,050 5,320 5,341 5,266 5,513 4 Reserve position in International Monetary Fund2 2,852 5,055 7,348 9,883 11,312 11,422 11,707 11,706 11,618 11,666 5 Foreign currencies4'5 10,134 9,774 10,212 6,914 6,289 6,295 6,677 6,817 6,594 6,430 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 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Deposits 411 505 328 360 190 251 246 222 345 295 Assets held in custody 2 U.S. Treasury securities' 102,417 104,680 112,544 116,398 117,670 117,076 119,499 116,768 117,808 114,562 3 Earmarked gold2 14,965 14,804 14,716 14,475 14,414 14,347 14,291 14,278 14,278 14,268 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

A52 International Statistics • June 1984 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 1984 tyoi Sept. Oct. Nov. Dec. Jan. Feb. Mar.P All foreign countries 1 Total, all currencies 401,135 462,847 469,712' 460,261 458,894 463,467 475,924' 454,299' 462,397 480,546 2 Claims on United States 28,460 63,743 91,805' 101,356 102,497 109,511 114,956 110,969 112,766 121,884 3 Parent bank 20,202 43,267 61,666' 65,561 69,655 75,521 81,004 76,430 79,417 86,429 4 Other 8,258 20,476 30,139 35,795 32,842 33,990 33,952 34,539 33,349 35,455 5 Claims on foreigners 354,960 378,954 358,493' 340,413 337,848 335,518 342,133' 324,354' 329,768 338,554 6 Other branches of parent bank 77,019 87,821 91,168' 89,304 87,543 89,447 92,688' 86,920' 85,730 90,692 7 Banks 146,448 150,763 133,752' 120,177 117,631 114,495 117,577' 106,875' 110,263 114,086 8 Public borrowers 28,033 28,197 24,131' 24,982 25,061 24,256 24,42(K 24,017' 24,342 24,731 9 Nonbank foreigners 103,460 112,173 109,442' 105,950 107,613 107,320 107,448 106,542' 109,433 109,045 10 Other assets 17,715 20,150 19,414' 18,492 18,549 18,438 18,835' 18,976' 19,863 20,108 11 Total payable in U.S. dollars 291,798 350,735 361,982' 354,595 351,483 358,204 370,713' 348,639' 349,834 364,486 12 Claims on United States 27,191 62,142 90,085' 98,510 99,938 107,015 112,850 108,866 110,521 119,482 13 Parent bank 19,896 42,721 61,010' 63,716 68,126 73,999 79,914 75,283 78,188 85,117 14 Other 7,295 19,421 29,075 34,794 31,812 33,016 32,936 33,583 32,333 34,365 15 Claims on foreigners 255,391 276,937 259,871' 245,541 241,221 240,768 247,166' 229,220' 228,864 235,043 16 Other branches of parent bank 58,541 69,398 73,537' 71,273 69,324 71,451 75,178' 69,056' 66,772 70,929 17 Banks 117,342 122,110 106,447' 95,113 92,048 90,143 93,248 82,546' 84,398 87,650 18 Public borrowers 23,491 22,877 18,413' 18,455 18,644 17,752 17,856' 17,717' 17,784 18,060 19 Nonbank foreigners 56,017 62,552 61,474' 60,700 61,205 61,422 60,884 59,901' 59,910 58,404 20 Other assets 9,216 11,656 12,026' 10,544 10,324 10,421 10,697 10,553' 10,449 9,961 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 156,048 156,803 155,964 158,732' 155,098 157,973 161,007 22 Claims on United States 7,509 11,823 27,354 28,947 30,853 32,352 34,433 35,634 36,647 38,072 23 Parent bank 5,275 7,885 23,017 20,816 25,507 26,872 29,111 29,759 30,876 32,201 24 Other 2,234 3,938 4,337 8,131 5,346 5,480 5,322 5,875 5,771 5,871 25 Claims on foreigners 131,142 138,888 127,734 121,518 120,660 118,275 119,280 114,287 116,055 118,200 26 Other branches of parent bank 34,760 41,367 37,000 36,382 36,556 35,642 36,565 34,842 33,296 34,617 27 Banks 58,741 56,315 50,767 45,451 43,888 42,683 43,352 40,119' 42,508 43,804 28 Public borrowers 6,688 7,490 6,240 6,274 6,280 6,307 5,898 6,063' 6,005 6,076 29 Nonbank foreigners 30,953 33,716 33,727 33,411 33,936 33,643 33,465 33,263 34,246 33,703 30 Other assets 6,066 6,518 5,979 5,583 5,290 5,337 5,019' 5,177 5,271 4,735 31 Total payable in U.S. dollars 99,699 115,188 123,740 121,238 121,817 121,744 126,012' 121,197 121,945 124,501 32 Claims on United States 7,116 11,246 26,761 27,837 30,095 31,671 33,756 34,917 35,935 37,282 33 Parent bank 5,229 7,721 22,756 20,036 25,084 26,537 28,756 29,414 30,516 31,789 34 Other 1,887 3,525 4,005 7,801 5,011 5,134 5,000 5,503 5,419 5,493 35 Claims on foreigners 89,723 99,850 92,228 89,530 88,253 86,614 88,917 83,161 83,067 84,599 36 Other branches of parent bank 28,268 35,439 31,648 31,409 31,414 30,371 31,838 29,741 28,103 28,723 37 Banks 42,073 40,703 36,717 33,237 31,796 31,158 32,188 28,749' 30,331 31,613 38 Public borrowers 4,911 5,595 4,329 4,329 4,346 4,377 4,194 4,356' 4,241 4,390 39 Nonbank foreigners 14,471 18,113 19,534 20,555 20,697 20,708 20,697 20,315 20,392 19,873 40 Other assets 2,860 4,092 4,751 3,871 3,469 3,459 3,339' 3,119 2,943 2,620 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156 143,148 141,311 147,257 151,463 141,293 140,198 149,238 42 Claims on United States 17,751 46,546 59,403 66,547 66,253 71,363 74,728 70,459 70,706 77,878 43 Parent bank 12,631 31,643 34,653 40,152 40,105 44,414 47,703 43,174 44,474 50,211 44 Other 5,120 14,903 24,750 26,395 26,148 26,949 27,025 27,285 26,232 27,667 45 Claims on foreigners 101,926 98,057 81,450 72,826 71,268 71,995 72,788 66,916 65,609 67,393 46 Other branches of parent bank 13,342 12,951 18,720 16,789 15,817 17,993 17,340 15,989 14,657 15,265 47 Banks 54,861 55,151 42,699 36,609 35,964 35,353 36,767 32,451 32,525 34,186 48 Public borrowers 12,577 10,010 6,413 6,461 6,643 5,890 6,084 5,992 5,956 6,025 49 Nonbank foreigners 21,146 19,945 13,618 12,967 12,844 12,759 12,597 12,484 12,471 11,917 50 Other assets 4,160 4,505 4,303 3,775 3,790 3,899 3,947 3,918 3,883 3,967 51 Total payable in U.S. dollars 117,654 143,743 139,605 136,851 134,684 140,841 145,017 134,881 133,826 142,726 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A53 3.14 Continued 1983 1984 LLiiaabbiilliittyy aaccccoouunntt 11998800 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p All foreign countries 52 Total, all currencies 401,135 462,847 469,712' 460,261 458,894 463,467 475,924' 454,299' 462,397 480,546 53 To United States 91,079 137,767 179,015' 182,588 185,551 184,202 187,482' 179,257' 182,575 187,660 54 Parent bank 39,286 56,344 75,621' 78,027 85,028 79,574 80,460' 76,847' 79,205 77,592 55 Other banks in United States 14,473 19,197 33,405' 30,904 27,036' 26,202' 29,107' 26,66c 25,633 28,879 56 Nonbanks 37,275 62,226 69,989' 73,657 73,487' 78,426' 77,915' 75,750' 77,737 81,189 57 To foreigners 295,411 305,630 270,853' 259,525 254,682 260,335 269,125' 256,107' 260,392 272,854 58 Other branches of parent bank 75,773 86,396 90,191' 86,714 84,004 86,792 89,047' 82,126^ 81,834 87,222 59 Banks 132,116 124,906 96,860' 86,550 84,533 88,023 92,800 86,564' 89,074 95,635 60 Official institutions 32,473 25,997 19,614 20,513 19,403 18,377 18,824' 19,517' 20,499 18,274 61 Nonbank foreigners 55,049 68,331 64,188' 65,748 66,742 67,143 68,454 67,900 68,985 71,723 62 Other liabilities 14,690 19,450 19,844' 18,148 18,661 18,930 19,317' 18,935 19,430 20,032 63 Total payable in U.S. dollars 303,281 364,447 379,270' 373,061 369,936 374,426 387,500' 365,344' 367,278 381,896 64 To United States 88,157 134,700 175,528' 178,814 181,645 180,206 183,767' 175,437' 178,260 183,364 65 Parent bank 37,528 54,492 73,295' 75,743 82,661 77,127 78,258' 74,495' 76,611 75,001 66 Other banks in United States 14,203 18,883 33,040' 30,358' 26,480' 25,711' 28,573' 26,166' 25,066 28,293 67 Nonbanks 36,426 61,325 69,193 72,713' 72,504' 77,368' 76,936' 74,776' 76,583 80,070 68 To foreigners 206,883 217,602 192,510' 184,430 178,943 184,278 193,888' 180,897' 179,912 189,315 69 Other branches of parent bank 58,172 69,299 72,921' 69,308 66,502 69,457 72,002' 65,028' 63,480 68,557 70 Banks 87,497 79,594 57,463' 50,862 48,264 52,072 57,013 50,604 50,673 56,147 71 Official institutions 24,697 20,288 15,055 15,400 14,630 13,453 13,852 14,673 15,835 13,185 72 Nonbank foreigners 36,517 48,421 47,071' 48,860 49,547 49,296 51,021 50,592 49,924 51,426 73 Other liabilities 8,241 12,145 11,232' 9,817 9,348 9,942 9,845' 9,010' 9,106 9,217 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 156,048 156,803 155,964 158,732' 155,098 157,973 161,007 75 To United States 21,785 38,022 53,954 56,924 60,903 57,095 55,799 55,620 56,551 56,344 76 Parent bank 4,225 5,444 13,091 16,852 21,385 17,312 14,021 17,077 18,308 15,850 77 Other banks in United States 5,716 7,502 12,205 12,174 10,751 10,176 11,328 10,640 10,570 11,556 78 Nonbanks 11,844 25,076 28,658 27,898 28,767 29,607 30,450 27,903 27,673 28,938 79 To foreigners 117,438 112,255 99,567 92,122 88,727 91,714 95,847 92,268 93,734 96,993 80 Other branches of parent bank 15,384 16,545 18,361 19,365 18,288 18,841 19,038 18,526 17,741 21,477 81 Banks 56,262 51,336 44,020 37,122 35,847 38,888 41,624 38,812 39,548 42,073 8? Official institutions 21,412 16,517 11,504 11,448 10,611 10,071 10,151 10,530 11,531 8,833 83 Nonbank foreigners 24,380 27,857 25,682 24,187 23,981 23,914 25,034 24,400 24,914 24,610 84 Other liabilities 5,494 6,952 7,546 7,002 7,173 7,155 7,086' 7,210 7,688 7,670 85 Total payable in U.S. dollars 103,440 120,277 130,261 127,868 128,600 127,234 131,167' 126,989 127,623 130,985 86 To United States 21,080 37,332 53,029 55,931 59,824 55,907 54,691 54,537 55,106 55,147 87 Parent bank 4,078 5,350 12,814 16,673 21,145 17,094 13,839 16,840 17,901 15,606 88 Other banks in United States 5,626 7,249 12,026 11,886 10,523 9,880 11,044 10,406 10,247 11,320 89 Nonbanks 11,376 24,733 28,189 27,372 28,156 28,933 29,808 27,291 26,958 28,221 90 To foreigners 79,636 79,034 73,477 68,252 65,347 68,011 73,279 69,557 69,438 72,776 91 Other branches of parent bank 10,474 12,048 14,300 15,166 14,542 15,044 15,403 14,758 13,956 17,559 9? Banks 35,388 32,298 28,810 24,478 23,136 26,343 29,320 26,386 26,229 28,833 93 Official institutions 17,024 13,612 9,668 9,381 8,742 8,029 8,279 8,594 9,777 6,910 94 Nonbank foreigners 16,750 21,076 20,699 19,227 18,927 18,595 20,277 19,819 19,476 19,474 95 Other liabilities 2,724 3,911 3,755 3,685 3,429 3,316 3,197' 2,895 3,079 3,062 Bahamas and Caymans 96 Total, all currencies 123,837 149,108 145,156 143,148 141,311 147,257 151,463 141,293 140,198 149,238 97 To United States 59,666 85,759 104,425 104,590 104,150 106,633 110,762 103,896 104,552 110,084 98 Parent bank 28,181 39,451 47,081 45,493 48,235 46,676 50,187 44,604 44,186 45,508 99 Other banks in United States 7,379 10,474 18,466 16,170 14,322 14,117 15,711 14,401' 13,533 15,634 100 Nonbanks 24,106 35,834 38,878 42,927 41,593 45,840 44,864 44,891' 46,833 48,942 101 To foreigners 61,218 60,012 38,274 36,239 34,782 38,164 38,362 35,157 33,409 36,803 10? Other branches of parent bank 17,040 20,641 15,796 13,357 12,634 15,521 13,376 12,253 11,790 11,980 103 Banks 29,895 23,202 10,166 9,506 9,059 9,618 11,869 9,883 9,351 11,357 104 Official institutions 4,361 3,498 1,967 2,237 1,976 1,624 1,916 2,309 1,870 2,419 105 Nonbank foreigners 9,922 12,671 10,345 11,139 11,113 11,401 11,201 10,712 10,398 11,047 106 Other liabilities 2,953 3,337 2,457 2,319 2,379 2,460 2,339 2,240 2,237 2,351 107 Total payable in U.S. dollars 119,657 145,284 141,908 139,855 137,514 143,604 147,658 137,429 136,516 145,202 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • June 1984 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 1984 IItteemm 11998811 11998822 Oct. Nov. Dec. Jan. Feb/ Mar. Apr.? 1 Total' 169,735 172,718 173,216 173,860 177,859 176,239 176,867 174,861 174,112 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 22,057 22,816 25,422 22,768 23,169 23,282 23,699 3 U.S. Treasury bills and certificates3 52,389 46,658 51,618 52,558 54,341 55,327 56,084 53,681 52,155 U.S. Treasury bonds and notes 4 Marketable 53,186 67,733 69,715 68,942 68,541 69,080 69,144 69,628 70,125 5 Nonmarketable4 11,791 8,750 7,950 7,250 7,250 7,250 6,600 6,600 6,600 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 21,876 22,294 22,305 21,814 21,870 21,670 21,533 By area 1 Western Europe1 65,699 61,298 64,894 65,648 67,669 66,208 67,925 67,698 68,769 8 Canada 2,403 2,070 2,811 2,665 2,438 2,511 2,329 1,944 1,557 9 Latin America and Caribbean 6,953 6,057 5,629 6,468 6,217 6,443 7,605 6,460 7,463 10 Asia 91,607 96,034 92,305 91,457 92,488 92,181 90,571 90,583 88,471 11 Africa 1,829 1,350 1,023 801 958 1,051 1,067 1,038 941 12 Other countries6 1,244 5,909 6,554 6,821 8,089 7,845 7,370 7,138 6,911 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 1984 IItteemm 11998800 11998811 11998822 June Sept. Dec. Mar.'' 1 Banks' own liabilities 3,748 3,523 4,844 5,880 5,976 5,205 6,168 2 Banks' own claims 4,206 4,980 7,707 7,862 7,984 7,256 8,992 3 Deposits 2,507 3,398 4,251 3,912 3,061 2,838 4,000 4 Other claims 1,699 1,582 3,456 3,950 4,923 4,418 4,992 5 Claims of banks' domestic customers1 962 971 676 684 717 1,059 361 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 A55 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 A1I foreigners 205,297 243,889 307,056 338,117 351,382 369,226 358,486 368,750' 376,886 378,849 7 Banks' own liabilities 124,791 163,817 227,089 249,952 262,226 278,644 264,478 271,707' 284,639 286,661 3 Demand deposits 23,462 19,631 15,889 17,094 17,198 17,594 16,100 16,639' 17,571 17,293 4 Time deposits1 15,076 29,039 68,035 80,865 84,735 90,098 87,691 91,157' 96,300 96,005 5 Other2 17,583 17,647 23,946 22,288 22,863 26,100 23,287 23,989' 24,480 24,587 6 Own foreign offices3 68,670 97,500 119,219 129,706 137,430 144,851 137,401 139,922' 146,288 148,777 7 Banks' custody liabilities4 80,506 80,072 79,967 88,165 89,156 90,582 94,007 97,043 92,247 92,188 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 65,735 66,746 68,669 71,083 74,277 69,669 68,878 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 17,182 17,721 17,529 18,063 17,864' 18,091 18,611 10 Other 2,832 5,970 3,702 5,247 4,690 4,385 4,862 4,903' 4,487 4,699 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 4,619 6,363 5,957 4,759 6,831 6,243 6,356 12 Banks' own liabilities 444 638 1,909 3,294 4,939 4,632 2,867 2,317 4,047 3,528 13 Demand deposits 146 262 106 452 437 297 271 347 414 195 14 Time deposits' 85 58 1,664 2,487 4,079 3,885 2,235 1,611 2,656 2,467 15 Other2 212 318 139 355 423 449 361 360 977 866 16 Banks' custody liabilities4 1,900 2,083 3,013 1,325 1,424 1,325 1,892 4,514 2,196 2,827 17 U.S. Treasury bills and certificates 254 541 1,621 441 484 463 1,045 3,416 1,224 1,759 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 884 939 862 847 1,098 971 1,068 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 73,675 75,374 79,764 78,095 79,253' 76,963 75,854 21 Banks' own liabilities 17,826 17,109 16,640 16,532 16,673 19,315 16,488 17,512' 17,014 17,360 22 Demand deposits 3,771 2,564 1,899 1,818 2,023 1,837 1,753 1,663 2,045 1,892 23 Time deposits' 3,612 4,230 5,528 6,661 6,723 7,294 7,286 7,638 6,517 7,413 24 Other2 10,443 10,315 9,212 8,053 7,926 10,184 7,449 8,211' 8,452 8,056 25 Banks' custody liabilities4 68,798 62,018 55,008 57,144 58,701 60,448 61,607 61,741 59,948 58,493 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 51,618 52,558 54,341 55,327 56,084 53,681 52,155 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 5,489 6,115 6,082 6,257 5,623 6,249 6,232 28 Other 54 47 28 36 28 25 23 34 19 107 29 Banks9 96,415 136,008 185,881 204,672 214,010 226,485 217,907 222,844' 233,229 234,529 30 Banks' own liabilities 90,456 124,312 169,449 182,731 192,572 204,945 195,330 200,325' 210,845 212,079 31 Unaffiliated foreign banks 21,786 26,812 50,230 53,025 55,142 60,094 57,929 60,403' 64,557 63,302 32 Demand deposits 14,188 11,614 8,675 9,102 8,770 8,756 8,151 8,394' 8,342 8,793 33 Time deposits' 1,703 8,720 28,386 30,691 32,678 36,734 35,036 37,475' 41,925 39,571 34 Other2 5,895 6,477 13,169 13,232 13,695 14,604 14,743 14,534 14,290 14,938 35 Own foreign offices3 68,670 97,500 119,219 129,706 137,430 144,851 137,401 139,922' 146,288 148,777 36 Banks' custody liabilities4 5,959 11,696 16,432 21,941 21,438 21,540 22,576 22,519 22,384 22,449 37 U.S. Treasury bills and certificates 623 1,685 5,809 10,036 9,967 10,178 10,776 10,756 10,763 10,795 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 7,542 7,251 7,485 7,416 7,378' 7.464 7,562 39 Other 2,588 5,611 2,766 4,363 4,221 3,877 4,384 4,385' 4,157 4,092 40 Other foreigners 19,914 26,035 44,606 55,151 55,635 57,021 57,725 59,822' 60,452 62,112 41 Banks' own liabilities 16,065 21,759 39,092 47,396 48,042 49,751 49,793 51,552' 52,733 53,694 42 Demand deposits 5,356 5,191 5,209 5,723 5,968 6,703 5,925 6,234 6,770 6,413 43 Time deposits 9,676 16,030 32,457 41,025 41,255 42,185 43,134 44,434' 45,202 46,554 44 Other2 1,033 537 1,426 648 819 863 734 884 761 726 45 Banks' custody liabilities4 3,849 4,276 5,514 7,755 7,593 7,269 7,932 8,270 7,719 8,418 46 U.S. Treasury bills and certificates 474 699 1,540 3,640 3,737 3,686 3,935 4,021 4,001 4,168 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 3,267 3,415 3,100 3,542 3,764 3,408 3,750 48 Other 190 312 908 848 441 483 455 484 311 501 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 9,995 10,385 10,407 10,307 9,416 9,688 9,970 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 A 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

A56 International Statistics • June 1984 3.17 Continued 1983 1984 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Oct. Nov. Dec. Jan. Feb. Mar. Apr.? 1 Total 205,297 243,889 307,056 338,117 351,382 369,226 358,486 368,750' 376,886 378,849 2 Foreign countries 202,953 241,168 302,134 333,498 345,019 363,269 353,726 361,918' 370,643 372,494 3 Europe 90,897 91,275 117,756 127,131 130,671 138,006 134,887 140,026' 142,071 114466,,886666 4 Austria 523 596 519 570 641 585 755 756' 861 888844 5 Belgium-Luxembourg 4,019 4,117 2,517 2,856 2,470 2,709 2,972 3,218' 3,367 3,586 6 Denmark 497 333 509 544 538 466 372 355' 285 307 7 Finland 455 296 748 372 375 531 298 398 287 485 8 France 12,125 8,486 8,171 8,638 8,083 9,441 8,122 10,098 10,728 10,737 9 Germany 9,973 7,645 5,351 4,307 4,337 3,599 3,823 4,582 4,874 5,279 10 Greece 670 463 537 595 544 520 513 513 503 527 11 Italy 7,572 7,267 5,626 7,703 7,824 8,459 7,622 7,648' 7,395 6,809 12 Netherlands 2,441 2,823 3,362 3,735 3,701 4,290 4,008 4,210' 4,444 4,960 li Norway 1,344 1,457 1,567 1,072 1,531 1,673 1,481 1,452 1,285 1,847 14 Portugal 374 354 388 297 306 373 377 352 403 414 15 Spain 1,500 916 1,405 1,592 1,534 1,603 1,645 1,664 1,749 1,706 lb Sweden 1,737 1,545 1,390 1,489 1,652 1,799 1,896 1,752 1,838 1,673 1/ Switzerland 16,689 18,716 29,066 30,822 30,623 32,117 31,956 32,237 32,312 32,739 18 Turkey 242 518 296 277 319 467 334 400 318 348 19 United Kingdom 22.680 28,286 48,172 55,082 58,437 60,658 61,794 64,411' 64,687 68,098 20 Yugoslavia 681 375 499 464 552 562 505 477 479 448 21 Other Western Europe1 6,939 6,541 7,006 6,102 6,660 7,493 5,872 4,965 5,612 5,442 22 U.S.S.R 68 49 50 37 27 65 62 74 177 61 23 Other Eastern Europe2 370 493 576 576 518 596 482 464 468 513 24 Canada 10,031 10,250 12,232 16,335 16,369 16,026 16,270 17,679 17,182 16,583 25 Latin America and Caribbean 53,170 85,223 114,163 126,640 134,139 140,033 135,671 138,399' 143,301 143,889 26 Argentina 2,132 2,445 3,578 4,018 4,377 4,011 4,303 4,536 4,365 4,617 27 Bahamas 16,381 34,856 44,744 50,496 53,703 55,877 52,314 52,850' 58,232 56,845 28 Bermuda 670 765 1,572 2,632 2,582 2,328 2,745 3,165 2,886 3,211 29 Brazil 1,216 1,568 2.014 3,818 4,150 3,158 2,997 3,473 3,728 3,980 30 British West Indies 12,766 17,794 26,381 27,466 30,624 34,431 32,531 32,456' 32,627 32,736 31 Chile 460 664 1,626 1,697 1,783 1,842 1,811 1,935 1,876 1,980 32 Colombia 3,077 2,993 2,594 1,617 1,645 11,,668899 1,584 1,840 11,,666688 11,,881155 33 Cuba 6 9 9 10 10 88 9 13 88 88 34 Ecuador 371 434 455 825 1,003 1,047 828 826 825 970 35 Guatemala 367 479 670 750 766 788 800 812 815 852 36 Jamaica 97 87 126 105 234 109 113 131 132 131 3/ Mexico 4,547 7,235 8,377 9,449 9,463 10,389 10,994 10,693 10,699 11,189 38 Netherlands Antilles 413 3,182 3,597 3,888 3,941 3,879 3,773 4,503' 4,901 4,666 39 Panama 4,718 4,857 4,805 5,902 5,946 5,924 5,586 5,545 5,498 5,472 40 Peru 403 694 1,147 1,049 1,090 1,166 1,130 1,146 1,157 1,178 41 Uruguay 254 367 759 1,202 1,173 1,232 1,278 1,321 1,418 1,330 42 Venezuela 3,170 4,245 8,417 8,202 8,024 8,603 9,313 9,442 8,566 9,076 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,513 3,626 3,551 3,562 3,712 3,899 3,834 44 Asia 4422,,442200 4499,,882222 4488,,771166 5533,,887711 5544,,227788 5588,,335511 5566,,000022 5555,,229933'' 5577,,666622 5544,,995500 China 45 Mainland 49 158 203 216 183 249 249 168 272 302 46 Taiwan 1,662 2,082 2,761 3,992 4,063 3,997 4,270 4,291 4,193 4,388 4/ Hong Kong 2,548 3,950 4,465 6,511 6,971 6,610 6,196 5,884 6,387 5,447 48 India 416 385 433 830 725 464 670 749 687 651 49 Indonesia 730 640 857 871 661 997 1,093 859 753 784 50 Israel 883 592 606 812 808 1,722 786 752' 833 708 51 Japan 16,281 20,750 16,078 17,140 17,138 18,079 17,069 17,615 19,216 18,862 52 Korea 1,528 2,013 1,692 1,353 1,591 1,648 1,614 1,542 1,748 1,409 53 Philippines 919 874 770 747 1,012 1,234 1,235 1,280 1,264 1,015 54 Thailand 464 534 629 522 569 716 776 622 714 637 55 Middle-East oil-exporting countries3 14,453 12,992 13,433 12,860 12,650 12,960 12,516 11,587 12,198 12,281 56 Other Asia 2,487 4,853 6,789 8,017 7,907 9,676 9,528 9,943 9,398 8,466 57 Africa 5,187 3,180 3,124 2,845 2,694 2,800 2,917 3,070 3,111 3,182 58 Egypt 485 360 432 576 589 645 572 568 561 648 59 Morocco 33 32 81 73 96 84 109 138 122 127 60 South Africa 288 420 292 394 389 449 486 502 538 264 61 Zaire 57 26 23 43 32 87 61 66 77 119 62 Oil-exporting countries4 3,540 1,395 1,280 736 679 620 869 839 893 1,046 63 Other Africa 783 946 1,016 1,023 909 917 821 957 920 978 64 Other countries 1,247 1,419 6,143 6,675 6,868 8,053 7,979 7,451 7,315 7,023 65 Australia 950 1,223 5,904 6,461 6,666 7,857 7,742 7,197 7,095 6,806 66 All other 297 196 239 214 202 196 237 255 220 217 67 Nonmonetary international and regional organizations 2,344 2,721 4,922 4,619 6,363 5,957 4,759 6,831 6,243 6,356 68 International 1,157 1,661 4,049 3,944 5,598 5,273 4,174 6,189 5,426 5,641 69 Latin American regional 890 710 517 437 415 419 433 457 451 419 70 Other regional5 296 350 357 238 350 265 152 186 366 296 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Asian, African, Middle Eastern, and European regional organizations, includes Eastern European countries not listed in line 23. except the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, and Romania. • Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman. Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A57 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 1984 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Oct. Nov. Dec. Jan. Feb. Mar. Apr.? 1 Total 172,592 251,589 355,705 373,311 375,118 387,710 372,146 376,875' 384,765 386,016 2 Foreign countries 172,514 251,533 355,636 373,251 375,048 387,547 372,081 376,711' 384,615 385,942 3 32,108 49,262 85,584 89,145 90,243 90,743 90,378 91,293' 91,642 96,276 4 236 121 229 334 395 401 354 414 449 695 5 Belgium-Luxembourg 1,621 2,849 5,138 5,533 5,548 5,639 5,942 6,182 5,970 6,185 6 Denmark 127 187 554 1,107 1,272 1,275 1,296 1,244 1,283 1,202 7 Finland 460 546 990 789 822 1,044 945 952 931 1,044 8 France 2,958 4,127 7,251 7,457 7,942 8,761 7,984 8,314' 8,388 8,736 9 Germany 948 940 1,876 1,095 1,256 1,294 1,058 1,047' 1,098 1,502 10 Greece 256 333 452 372 412 476 508 549 694 830 11 Italy 3,364 5,240 7,560 7,713 8,459 9,013 7,869 7,904' 8,161 8,290 1? Netherlands 575 682 1,425 1,071 1,396 1,302 1,407 1,319' 1,324 2,329 13 Norway 227 384 572 575 590 690 652 645 638 705 14 Portugal 331 529 950 893 891 939 954 944 908 1,079 15 Spain 993 2,095 3,744 3,162 3,654 3,573 3,391 3,280' 3,347 3,723 16 783 1,205 3,038 3,059 3,249 3,358 3,373 3,356 3,528 3,673 17 Switzerland 1,446 2,213 1,639 1,625 2,114 1,856 1,452 1,302 1,447 1,866 18 Turkey 145 424 560 660 693 812 795 879 958 1,019 19 United Kingdom 14,917 23,849 45,781 50,041 47,762 46,372 48,488 49,069' 48,580 49,296 20 Yugoslavia 853 1,225 1,430 1,468 1,582 1,673 1,718 1,702 1,706 1,694 21 Other Western Europe1 179 211 368 405 429 477 493 547 499 655 V U.S.S.R 281 377 263 211 173 192 162 169 181 174 23 Other Eastern Europe2 1,410 1,725 1,762 1,575 1,603 1,598 1,537 1,475 1,551 1,580 24 Canada 4,810 9,193 13,678 15,892 16,382 16,330 15,868 15,984' 17,218 17,063 75 Latin America and Caribbean 92,992 138,347 187,969 194,991 197,785 203,269 193,898 196,869' 201,840 199,849 26 Argentina 5,689 7,527 10,974 11,638 11,899 11,740 11,746 11,751 11,626 11,427 77 Bahamas 29,419 43,542 56,649 55,756 56,131 58,351 52,586 52,761' 57,222 55,163 78 Bermuda 218 346 603 477 620 566 644 409 532 818 79 Brazil 10,496 16,926 23,271 24,232 24,532 24,482 24,826 24,928 25,712 25,948 30 British West Indies 15,663 21,981 29,101 31,005 32,251 34,921 31,171 33,175' 33,115 33,665 31 Chile 1,951 3,690 5,513 5,756 5,860 6,029 6,163 6,286 6,131 6,112 3? Colombia 1,752 2,018 3,211 3,653 3,734 3,745 3,695 3,536 3,668 3,653 33 Cuba 3 3 3 3 0 0 0 0 0 4 34 Ecuador 1,190 1,531 2,062 2,141 2,262 2,307 2,367 2,350 2,334 2,340 35 Guatemala3 137 124 124 115 122 129 189 126 128 129 36 36 62 181 203 210 215 218 219 210 227 37 Mexico 12,595 22,439 29,552 33,562 33,729 34,710 34,547 34,685' 34,610 34,602 38 Netherlands Antilles 821 1,076 839 1,033 1,186 1,154 971 1,043 1,230 1,149 39 4,974 6,794 10,210 8,835 8,336 7,848 7,847 8,794 8,367 7,678 40 Peru 890 1,218 2,357 2,434 2,469 2,536 2,467 2,415 2,453 2,382 41 Uruguay 137 157 686 883 903 977 982 908 924 922 42 Venezuela 5,438 7,069 10,643 10,888 11,086 11,287 11,247 11,183' 11,143 11,116 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,377 2,455 2,271 2,232 2,298 2,436 2,513 44 39,078 49,851 60,952 63,949 61,286 67,648 62,655 62,623' 64,261 63,002 China 45 Mainland 195 107 214 295 249 292 420 337 373 428 46 Taiwan 2,469 2,461 2,288 1,618 1,574 1,908 1,820 1,710' 1,645 1,654 47 Hong Kong 2,247 4,132 6,787 8,337 8,758 8,429 8,129 8,030' 7,470 7,941 48 142 123 222 324 305 330 344 253 337 372 49 245 352 348 704 711 805 853 899 935 911 50 1,172 1,567 2,029 1,780 1,817 1,795 1,556 1,478 1,607 1,844 51 21,361 26,797 28,379 28,280 25,829 30,573 27,333 27,845' 28,698 26,178 57 5,697 7,340 9,387 9,324 9,629 9,891 9,489 9,513' 9,676 10,324 53 Philippines 989 1,819 2,625 2,376 2,427 2,099 2,408 2,357' 2.371 2,359 54 876 565 643 831 867 1,021 1,021 1,035 986 1,014 55 Middle East oil-exporting countries4 1,432 1,581 3,087 4,689 4,276 4,954 4,637 4,264' 5,015 5,089 56 Other Asia 2,252 3,009 4,943 5,390 4,845 5,549 4,646 4,902' 5,145 4,887 57 2,377 3,503 5,346 6,910 6,830 6,654 6,571 7,226' 6,919 6,644 58 Egypt 151 238 322 642 692 747 738 712' 744 698 59 Morocco 223 284 353 462 461 440 450 481 484 486 60 South Africa 370 1,011 2,012 2,578 2,892 2,634 2,684 2,928' 2,989 2,908 61 Zaire 94 112 57 38 37 33 29 16 13 26 62 Oil-exporting countries5 805 657 801 1,485 1,039 1,073 1,037 1,124 1,029 1,000 63 Other 734 1,201 1,802 1,705 1,709 1,727 1,631 1,964' 1,661 1,525 64 Other countries 1,150 1,376 2,107 2,365 2,522 2,904 2,712 2,718' 2,734 3,109 65 859 1,203 1,713 1,701 1,899 2,272 2,105 2,048' 2,007 2,489 66 All other 290 172 394 664 624 632 607 670' 727 620 67 Nonmonetary international and regional organizations6 78 56 68 60 70 164 64 164 150 75 1. Includes the Bank for Internationa] 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

A58 International Statistics • June 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 1984 TTyyppee ooff ccllaaiimm 11998800 11998811AA 11998822 Oct. Nov. Dec. Jan. Feb.' Mar. Apr.P 1 Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555555555557777777 333333399999996666666,,,,,,,000000011111115555555 444444422222221111111,,,,,,,666666655555553333333 444444422222220000000,,,,,,,999999944444449999999 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555588888889999999 333333355555555555555,,,,,,,777777700000005555555 373,311 375,118 333333388888887777777,,,,,,,777777711111110000000 372,146 376,875 333333388888884444444,,,,,,,777777766666665555555 386,016 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444422222222222222 54,954 56,026 55555557777777,,,,,,,222222255555555555555 58,115 57,346 55555557777777,,,,,,,777777733333336666666 58,088 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,222222299999993333333 141,655 137,520 111111144444444444444,,,,,,,000000011111116666666 138,377 140,881 111111144444446666666,,,,,,,222222288888882222222 144,586 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,777777700000004444444 111111122222221111111,,,,,,,333333377777777777777 115,021 118,619 111111122222222222222,,,,,,,777777777777779999999 115,211 116,872 111111111111119999999,,,,,,,444444400000004444444 121,206 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333388888881111111 44444444444444,,,,,,,222222222222223333333 44,697 44,738 44444446666666,,,,,,,333333399999992222222 43,092 44,742 44444445555555,,,,,,,111111133333335555555 44,202 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 70,324 73,881 77777776666666,,,,,,,333333388888887777777 72,119 72,130 77777774444444,,,,,,,222222266666669999999 77,004 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,666666611111114444444 61,681 62,952 66666663333333,,,,,,,666666666666661111111 60,442 61,776 66666661111111,,,,,,,333333344444442222222 62,135 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333333333333,,,,,,,999999944444443333333 33333336666666,,,,,,,111111188888884444444 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,666666655555559999999 11 Negotiable and readily transferable 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222225555555,,,,,,,111111100000004444444 22222225555555,,,,,,,999999999999992222222 12 Outstanding collections and other 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 6666666,,,,,,,555555533333333333333 13 MEMO: Customer liability on 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,333333322222224444444 33333337777777,,,,,,,000000022222222222222 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 40,369 42,186 45,187' 47,936' 44,300^ 44,581' 46,755 47,048 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 1983 1984 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa 11998800 11998811AA 11998822 June Sept. Dec. Mar .p 1 Total 106,748 154,590 228,150 232,704 237,162 242,933 232,806 By borrower 2 Maturity of 1 year or less1 82,555 116,394 173,917 175,021 176,271 175,970 159,988 3 Foreign public borrowers 9,974 15,142 21,256 23,124 25,479 24,258 20,628 4 All other foreigners 72,581 101,252 152,661 151,897 150,792 151,712 139,360 5 Maturity of over 1 year1 24,193 38,197 54,233 57,683 60,891 66,963 72,818 6 Foreign public borrowers 10,152 15,589 23,137 26,455 28,231 32,482 35,876 7 All other foreigners 14,041 22,608 31,095 31,227 32,660 34,481 36,941 By area Maturity of 1 year or less' 8 Europe 18,715 28,130 50,500 52,208 53,332 55,550 53,205 9 Canada 2,723 4,662 7,642 7,110 6,642 6,200 6,553 10 Latin America and Caribbean 32,034 48,717 73,291 74,967 76,383 73,997 63,180 11 26,686 31,485 37,578 35,345 33,890 34,518 31,240 12 Africa 1,757 2,457 3,680 3,854 4,570 4,206 4,470 13 All other2 640 943 1,226 1,536 1,454 1,499 1,340 Maturity of over 1 year' 14 Europe 5,118 8,100 11,636 12,289 12,338 13,300 13,067 15 Canada 1,448 1,808 1,931 1,861 1,760 1,857 2,038 16 Latin America and Caribbean 15,075 25,209 35,247 36,730 39,102 43,498 49,094 17 1,865 1,907 3,185 4,070 4,735 4,838 5,122 18 Africa 507 900 1,494 1,667 1,819 2,278 2,291 19 All other2 179 272 740 1,066 1,136 1,191 1,206 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 A59 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks' Billions of dollars, end of period 1982 1983 1984 AArreeaa oorr ccoouunnttrryy 11997799 11998800 11998811 June Sept. Dec. Mar. June Sept. Dec. Mar.P 1 Total 303.9 352.0 415.2 435.5' 438.4' 438.7' 441.1' 437.4' 428.3' 434.1' 430.8 2 G-10 countries and Switzerland 138.4 162.1 175.5 176.3 175.4 179.7 182.2' 176.9' 168.3' 167.2' 165.0 3 Belgium-Luxembourg 11.1 13.0 13.3 14.1 13.6 13.1 13.7 13.3 12.6 12.4 11.0 4 France 11.7 14.1 15.3 16.5 15.8 17.1 17.1 17.1 16.2 16.3 15.9 5 Germany 12.2 12.1 12.9 12.7 12.2 12.7 13.5' 12.6 11.6 11.3' 11.7 6 Italy 6.4 8.2 9.6 9.0 9.7 10.3 10.2 10.5 10.0' 11.4' 11.2 7 Netherlands 4.8 4.4 4.0 4.1 3.8 3.6 4.3 4.0 3.6 3.5 3.4 8 Sweden 2.4 2.9 3.7 4.0 4.7 5.0 4.3 4.7 4.9 5.1 5.2 9 Switzerland 4.7 5.0 5.5 5.1 5.1 5.0 4.6 4.8 4.2 4.3 4.2 10 United Kingdom 56.4 67.4 70.1 69.4 70.3 72.1 72.9 70.3' 67.4' 64.4' 63.9 11 Canada 6.3 8.4 10.9 11.4 11.0 10.4 12.5' 10.8 9.0 8.3 8.6 12 Japan 22.4 26.5 30.2 29.9 29.3 30.2 29.2 28.7 28.8' 30.1' 30.0 13 Other developed countries 19.9 21.6 28.4 32.2' 32.7 33.7 34.0' 34.4 34.2' 35.9' 35.5 14 Austria 2.0 1.9 1.9 2.1 2.0 1.9 2.1 2.1 1.9 1.9 2.0 15 Denmark 2.2 2.3 2.3 2.6 2.5 2.4 3.3 3.4 3.3 3.4' 3.4 16 Finland 1.2 1.4 1.7 1.6 1.8 2.2 2.1 2.1 1.8 2.4 2.1 17 Greece 2.4 2.8 2.8 2.7 2.6 3.0 2.9 2.9 2.9 2.8 3.0 18 Norway 2.3 2.6 3.1 3.2 3.4 3.3 3.3 3.4 3.2 3.3' 3.2 19 Portugal .7 .6 1.1 1.5 1.6 1.5 1.4 1.4 1.3 1.3 1.1 20 Spain 3.5 4.4 6.6 7.3 7.7 7.5 7.1' 7.2 7.2' 7.1' 7.1 21 Turkey 1.4 1.5 1.4 1.5 1.5 1.4 1.5 1.4 1.5 1.7 1.9 22 Other Western Europe 1.4 1.7 2.1 2.2 2.1 2.3 2.3' 2.0 2.1 1.8' 1.8 23 South Africa 1.3 1.1 2.8 3.5 3.6 3.7 3.6 3.9 4.7 4.7 4.8 24 Australia 1.3 1.3 2.5 4.0 4.0 4.4 4.6 4.6' 4.4 5.5 5.2 25 OPEC countries2 22.9 22.7 24.8 26.4 27.3 27.4 28.5 28.3' 27.2 28.9' 28.5 26 Ecuador 1.7 2.1 2.2 2.4 2.3 2.2 2.2 2.2 2.1 2.2 2.1 27 Venezuela 8.7 9.1 9.9 10.1 10.4 10.5 10.4 10.4 9.8 9.9 9.7 28 Indonesia 1.9 1.8 2.6 2.8 2.9 3.2 3.5 3.2 3.4 3.8 4.0 29 Middle East countries 8.0 6.9 7.5 8.7 9.0 8.7 9.3 9.5 9.1' 10.0 9.8 30 African countries 2.6 2.8 2.5 2.5 2.7 2.8 3.0 3.0 2.8 3.0' 3.0 31 Non-OPEC developing countries 63.0 77.4 96.3 103.7' 104.1' 107.1' 107.7' 108.3' 109.1' 110.6' 111.9 Latin America 32 Argentina 5.0 7.9 9.4 9.6 9.2 8.9 9.0 9.4 9.5 9.5' 9.5 33 Brazil 15.2 16.2 19.1 21.4 22.4 22.9 23.1 22.6' 22.9 22.9' 24.9 34 Chile 2.5 3.7 5.8 6.4 6.2 6.3 6.0 5.8 6.2 6.4' 6.4 35 Colombia 2.2 2.6 2.6 2.6 2.8 3.1 2.9 3.2 3.2 3.2 3.1 36 Mexico 12.0 15.9 21.6 25.2 25.0 24.5 25.1 25.2 25.8 26.0' 25.5 37 Peru 1.5 1.8 2.0 2.4' 2.6 2.6 2.4 2.6 2.4 2.4 2.3 38 Other Latin America 3.7 3.9 4.1 4.0 4.3 4.0 4.2 4.3 4.2 4.2' 4.4 Asia China 39 Mainland .1 .2 .2 .3 .2 .2 .2 .2 .2 .3 .4 40 Taiwan 3.4 4.2 5.1 5.0 4.9 5.3' 5.1 5.1 5.2 5.3 5.0 41 India .2 .3 .3 .5 .5 .6 .4 .5 .5 .6 1.0 42 Israel 1.3 1.5 2.1 2.2 1.9 2.3 2.0 2.3 1.7 1.8 1.6 43 Korea (South) 5.4 7.1 9.4 8.9 9.4' 10.9' 10.9' 10.8 10.8 11.3 11.1 44 Malaysia 1.0 1.1 1.7 1.9 1.8 2.1 2.5 2.6 2.8 2.9 2.8 45 Philippines 4.2 5.1 6.0 6.3 6.1' 6.3 6.6 6.4 6.2 6.2 6.7 46 Thailand 1.5 1.6 1.5 1.3 1.3 1.6 1.6 1.8 1.7 2.0' 1.9 47 Other Asia .5 .6 1.0 1.1 1.3 1.1 1.4 1.2 1.0 1.0 .9 Africa 48 Egypt .6 .8 1.1 1.3 1.3 1.2 1.1 1.3 1.4 1.5' 1.4 49 Morocco .6 .7 .7 .7 .8 .7 .8 .8 .8 .8 .8 50 Zaire .2 .2 .2 .2 .1 .1 .1 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.3 2.3 2.2 2.4 2.3 2.2 2.4 2.3 2.2 52 Eastern Europe 7.3 7.4 7.8 6.7 6.3 6.2 5.7' 5.7 5.3 5.3' 4.9 53 U.S.S.R .7 .4 .6 .4 .3 .3 .3 .4 .2 .2 .2 54 Yugoslavia 1.8 2.3 2.5 2.4 2.2 2.2 2.2 2.3 2.3 2.3' 2.2 55 Other 4.8 4.6 4.7 3.9 3.8 3.7 3.2' 3.0 2.8 2.8 2.5 56 Offshore banking centers 40.4 47.0 63.7 72.1' 72.2' 66.8 66.2' 67.6' 67.5' 69.2' 68.9 57 Bahamas 13.7 13.7 19.0 24.1 21.4 19.0 17.4' 19.6' 20.5' 20.7' 23.6 58 Bermuda .8 .6 .7 .7 .8 .9 1.0 .8 .8 .9 .7 59 Cayman Islands and other British West Indies 9.4 10.6 12.4 12.4' 13.6 12.9 12.C 12.2' 10.6' 12.2' 10.8 60 Netherlands Antilles 1.2 2.1 3.2 3.0 3.3 3.3 3.1 2.6 4.1 4.2' 3.2 61 Panama4 4.3 5.4 7.7 7.4 8.1 7.6 7.1 6.6 5.7 6.0 6.3 62 Lebanon .2 .2 .2 .2 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 11.8 14.4' 15.1' 13.9 15.1' 14.6' 15.1 14.9 14.3 64 Singapore 4.5 5.9 8.7 9.9 9.8 9.2' 10.3 11.0 10.5' 10.2 9.8 65 Others5 .4 .3 .1 .1 .0 .0 .0 .0 .1 .0 .0 66 Miscellaneous and unallocated6 11.7 14.0 18.8 18.4 20.4' 17.9 16.8' 16.1 16.8 17.(K 16.2 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

A60 International Statistics • June 1984 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States' Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 11998822 Dec. Mar. June Sept. Dec. 1 Total 29,434 28,618 25,568 25,568 23,285 22,531 24,595 23,571 2 Payable in dollars 25,689 24,909 22,375 22,375 20,302 19,625 21,728 20,484 3 Payable in foreign currencies 3,745 3,709 3,193 3,193 2,983 2,906 2,867 3,087 By type 4 Financial liabilities 11,330 12,157 10,906 10,906 10,831 10,866 10,779 10,383 5 Payable in dollars 8,528 9,499 8,734 8,734 8,795 8,823 8,809 8,504 6 Payable in foreign currencies 2,802 2,658 2,172 2,172 2,036 2,043 1,971 1,879 7 Commercial liabilities 18,104 16,461 14,662 14,662 12,454 11,665 13,815 13,189 8 Trade payables 12,201 10,818 7,707 7,707 5,627 6,026 7,056 6,496 9 Advance receipts and other liabilities 5,903 5,643 6,955 6,955 6,827 5,640 6,760 6,693 10 Payable in dollars 17,161 15,409 13,641 13,641 11,507 10,802 12,919 11,980 11 Payable in foreign currencies 943 1,052 1,021 1,021 947 864 896 1,208 By area or country Financial liabilities 12 Europe 6,481 6,825 6,369 6,369 6,233 6,220 5,978 5,715 13 Belgium-Luxembourg 479 471 505 505 410 436 379 302 14 France 327 709 731 731 725 756 785 820 15 Germany 582 491 470 470 487 460 454 505 16 Netherlands 681 748 711 711 699 728 730 581 17 Switzerland 354 715 753 753 702 621 530 525 18 United Kingdom 3,923 3,565 3,070 3,070 3,081 3,069 2,943 2,834 19 Canada 964 963 746 746 733 865 788 770 20 Latin America and Caribbean 3,136 3,356 2,724 2,724 2,707 2,435 2,658 2,541 21 Bahamas 964 1,279 899 899 827 695 771 749 22 Bermuda 1 7 14 14 18 10 13 13 23 Brazil 23 22 28 28 39 34 32 32 24 British West Indies 1,452 1,241 1,010 1,010 1,009 932 972 896 25 Mexico 99 102 121 121 149 151 185 215 26 Venezuela 81 98 114 114 121 124 117 124 27 Asia 723 976 1,039 1,039 1,124 1,319 1,322 1,330 28 Japan 644 792 715 715 781 943 957 962 29 Middle East oil-exporting countries2 38 75 169 169 168 205 201 170 30 Africa 11 14 17 17 20 17 19 18 31 Oil-exporting countries3 1 0 0 0 0 0 0 0 32 All other4 15 24 12 12 13 9 15 10 Commercial liabilities 33 Europe 4,402 3,770 3,649 3,649 3,443 3,368 3,384 3,122 34 Belgium-Luxembourg 90 71 52 52 45 41 47 62 35 France 582 573 597 597 578 617 506 436 36 Germany 679 545 467 467 455 439 461 436 37 Netherlands 219 220 346 346 351 342 243 275 38 Switzerland 499 424 363 363 354 357 448 232 39 United Kingdom 1,209 880 850 850 679 633 786 605 40 Canada 888 897 1,490 1,490 1,433 1,465 1,407 1,827 41 Latin America and Caribbean 1,300 1,044 1,008 1,008 1,066 1024 11,,006677 11,,006633 42 Bahamas 8 2 16 16 4 1 11 11 43 Bermuda 75 67 89 89 117 76 76 63 44 Brazil 111 67 60 60 51 49 48 44 45 British West Indies 35 2 32 32 4 22 14 6 46 Mexico 367 340 379 379 355 399 429 491 47 Venezuela 319 276 165 165 198 236 217 166 48 Asia 10,242 9,384 7,160 7,160 5,437 4,799 6,852 6,040 49 Japan 802 1,094 1,226 1,226 1,235 1,236 1,294 1,234 50 Middle East oil-exporting countries2 5 8,098 7,008 4,531 4,531 2,803 2,294 4,072 3,498 51 Africa 817 703 704 704 497 492 506 446 52 Oil-exporting countries3 517 344 277 277 158 167 204 157 53 All other4 456 664 651 651 578 518 600 690 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 A61 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1982 1983 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 11998822 Dec. Mar. June Sept. Dec. 1 Total 34,482 36,185 28,411 28,411 31,189 31,421 31,656 33,329 2 Payable in dollars 31,528 32,582 25,784 25,784 28,472 28,778 28,780 30,169 3 Payable in foreign currencies 2,955 3,603 2,628 2,628 2,718 2,643 2,877 3,160 By type 4 Financial claims 19,763 21,142 17,429 17,429 20,220 20,812 20,831 22,299 5 Deposits 14,166 15,081 12,893 12,893 15,569 15,976 15,987 17,318 6 Payable in dollars 13,381 14,456 12,467 12,467 15,092 15,549 15,542 16,821 7 Payable in foreign currencies 785 625 426 426 478 426 445 497 8 Other financial claims 5,597 6,061 4,536 4,536 4,651 4,836 4,845 4,981 9 Payable in dollars 3,914 3,599 2,895 2,895 3,006 3,238 3,019 2,919 10 Payable in foreign currencies 1,683 2,462 1,641 1,641 1,645 1,598 1,826 2,062 11 Commercial claims 14,720 15,043 10,982 10,982 10,969 10,609 10,825 11,030 12 Trade receivables 13,960 14,007 9,973 9,973 9,765 9,241 9,526 9,655 13 Advance payments and other claims 759 1,036 1,010 1,010 1,203 1,367 1,299 1,375 14 Payable in dollars 14,233 14,527 10,422 10,422 10,374 9,991 10,219 10,429 15 Payable in foreign currencies 487 516 561 561 595 618 606 601 By area or country Financial claims 16 Europe 6,069 4,596 4,835 4,835 6,196 6,817 6,202 6,423 17 Belgium-Luxembourg 145 43 10 10 58 12 25 37 18 France 298 285 134 134 98 140 135 130 19 Germany 230 224 178 178 127 217 151 129 20 Netherlands 51 50 97 97 140 136 89 49 21 Switzerland 54 117 107 107 107 37 34 38 22 United Kingdom 4,987 3,546 4,044 4,044 5,414 6,040 5,547 5,768 23 Canada 5,036 6,755 4,287 4,287 4,613 4,881 4,958 5,759 24 Latin America and Caribbean 7,811 8,812 7,420 7,420 8,520 8,040 8,609 9,110 25 Bahamas 3,477 3,650 3,236 3,236 3,806 3,244 3,389 4,332 26 Bermuda 135 18 32 32 21 93 62 96 27 Brazil % 30 62 62 50 48 49 53 28 British West Indies 2,755 3,971 3,161 3,161 3,365 3,339 3,932 3,509 29 Mexico 208 313 274 274 352 348 315 273 30 Venezuela 137 148 139 139 156 152 137 134 31 Asia 607 758 698 698 712 772 764 714 32 Japan 189 366 153 153 233 288 257 246 33 Middle East oil-exporting countries2 20 37 15 15 18 14 8 4 34 Africa 208 173 158 158 153 154 151 147 35 Oil-exporting countries3 26 46 48 48 45 48 45 55 36 All other4 32 48 31 31 25 149 148 145 Commercial claims 37 Europe 5,544 5,405 3,777 3,777 3,594 3,410 3,349 3,604 38 Belgium-Luxembourg 233 234 150 150 140 144 131 142 39 France 1,129 776 473 473 489 499 486 455 40 Germany 599 561 356 356 424 364 381 346 41 Netherlands 318 299 347 347 309 242 282 332 42 Switzerland 354 431 339 339 227 303 270 295 43 United Kingdom 929 985 808 808 754 739 734 802 44 Canada 914 967 632 632 648 716 788 822 45 Latin America and Caribbean 3,766 3,479 2,521 2,521 2,699 2,722 2,864 2,697 46 Bahamas 21 12 21 21 30 30 15 8 47 Bermuda 108 223 259 259 172 108 242 194 48 Brazil 861 668 258 258 402 512 611 493 49 British West Indies 34 12 12 12 21 21 12 7 50 Mexico 1,102 1,022 774 774 894 956 897 883 51 Venezuela 410 424 351 351 288 273 282 273 52 Asia 3,522 3,959 3,048 3,048 3,128 2,871 2,936 3,045 53 Japan 1,052 1,245 1,047 1,047 1,115 949 1,037 1,091 54 Middle East oil-exporting countries2 825 905 751 751 702 700 719 737 55 Africa 653 772 588 588 559 528 562 584 56 Oil-exporting countries3 153 152 140 140 131 130 131 139 57 All other4 321 461 417 417 342 361 326 277 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

A62 International Statistics • June 1984 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1984 1983 1984 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 A Ja p n r. . - Oct. Nov. Dec. Jan. Feb. Mar. Apr.? U.S. corporate securities STOCKS 1 Foreign purchases 41,881 69,896 22,242 5,534 4,853 6,020 5,445 6,234' 6,101 4,462 2 Foreign sales 37,981 64,466 21,388 5,388 4,794 5,745 5,798 5,823' 5,599 4,168 3 Net purchases, or sales (-) 3,901 5,430 854 145 60 275 -353 411' 502 294 4 Foreign countries 3,816 5,332 902 141 59 283 -342 48C 470 294 5 Europe 2,530 3,999 520 -93 -60 -278 -160 147' 329 204 6 France -143 -97 -134 -33 -68 -64 -71 -97 -4 38 7 Germany 333 1,045 318 55 53 -51 95 116 151 -43 8 Netherlands -63 -109 18 -15 24 13 0 1 32 -15 9 Switzerland -579 1,325 278 -18 -97 -208 -92 282' -3 90 10 United Kingdom 3,117 1,818 3 -133 21 51 -87 -168 125 133 11 Canada 222 1,151 759 124 -1 183 83 323' 300 52 12 Latin America and Caribbean 317 529 206 -40 14 239 124 43 14 25 13 Middle East1 366 -807 -663 49 45 13 -361 -44 -197 -60 14 Other Asia 247 394 87 103 63 122 -48 36 33 66 15 Africa 2 42 14 -1 1 2 5 10 -7 7 16 Other countries 131 24 -21 -1 -3 1 16 -34 -1 -1 17 Nonmonetary international and regional organizations 85 98 -48 4 0 -7 -11 -70 32 1 BONDS2 18 Foreign purchases 21,639 23,976 7.82J 2,537 2,039 1,661 1,836 2,1)3 2,204 1,668 19 Foreign sales 20,188 23,076 7,882 2,492 1,304 1,493 1,775 1,864 2,412 1,831 20 Net purchases, or sales (-) 1,451 900 -61 45 735 168 62 248 -207 -163 21 Foreign countries 1,479 885 -147 142 715 160 72 161 -150 -230 22 Europe 2,082 904 139 303 458 -87 72 51' -15 30 23 France 305 -89 -12 2 -31 -4 -1 -5 -1 -5 24 Germany 2,110 286 114 66 53 -10 -38 -32 117 68 25 Netherlands 33 51 25 11 5 3 3 25 9 -12 26 Switzerland 157 632 -51 7 15 78 12 5 -45 -22 27 United Kingdom -589 438 -65 136 390 -126 129 101 -58 -237 28 Canada 24 123 -128 22 46 -22 1 -10 -26 -93 29 Latin America and Caribbean 159 100 -295 24 -6 20 9 16 -312 -8 30 Middle East1 -752 -1,159 -229 -249 116 42 -26 30 30 -263 31 Other Asia -22 865 365 45 101 207 18 75 170 102 32 Africa -19 0 0 0 0 0 -1 0 0 1 33 Other countries 7 52 1 -4 0 0 0 -2 3 1 34 Nonmonetary international and regional organizations -28 15 87 -97 20 7 -11 87 -57 67 Foreign securities 35 Stocks, net purchases, or sales (-) -1,341 -3,867 365 -13 -31 -190 -125 318' 144 28 36 Foreign purchases 7,163 13,143 5,448 1,142 907 1,126 1,197 1,460' 1,575 1,215 37 Foreign sales 8,504 17,010 5,084 1,155 939 1,317 1,323 1,142' 1,431 1,188 38 Bonds, net purchases, or sales (-) -6,631 -3,694 -15 -202 173 -689 125 -73 -155 88 39 Foreign purchases 27,167 35,669 15,685 3,903 3,114 3,072 3,273 3,902 4,748 3,761 40 Foreign sales 33,798 39,363 15,699 4,105 2,940 3,761 3,148 3,975 4,902 3,674 41 Net purchases, or sales (-), of stocks and bonds ... -7,972 -7,561 350 -215 142 -879 0 245' -11 116 42 Foreign countries -6,806 -7,116 106 -264 38 -719 -29 213' -96 17 43 Europe -2,584 -5,713 -1,059 -367 -426 -448 -45 -404' -236 -374 44 Canada -2,363 -1,582 24 6 37 -64 -128 184 -116 84 45 Latin America and Caribbean 336 1,120 477 5 135 17 114 188 49 126 46 Asia -1,822 -914 696 90 158 -81 33 255 220 187 47 Africa -9 141 -30 11 1 0 -5 -11 -10 -4 48 Other countries -364 -166 -3 -10 133 -143 2 1 -3 -3 49 Nonmonetary international and regional organizations -1,165 -445 244 49 105 -161 28 32 85 98 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 2. Includes state and local government securities, and securities of U.S. Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). government agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment Transactions and Discount Rates A63 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1984 1983 1984 11998822 11998833 Country or area A Ja p n r. . - Oct. Nov. Dec. Jan. Feb. Mar. Apr. f Holdings (end of period)1 1 Estimated total2 85,220 88,940 90,938 89,509 88,940 89,666 90,275' 89,812 92,010 2 Foreign countries2 80,637 83,820 84,283 83,668 83,820 84,549 84,446' 84,533 85,408 3 Europe2 29,284 35,537 34,469 35,106 35,537 36,049 37,396' 37,334 37,807 4 Belgium-Luxembourg 447 16 18 2 16 33 50 57 93 5 Germany2 14,841 17,290 16,570 17,092 17,290 17,581 18,527 18,837 19,204 6 Netherlands 2,754 3,129 2,987 3,048 3,129 3,113 3,052 3,023 3,115 7 Sweden 677 867 739 783 867 898 918 965 969 8 Switzerland2 1,540 1,118 1,177 1,064 1,118 1,167 1,206 1,256 1,170 9 United Kingdom 6,549 8,524 8,629 8,626 8,524 8,723 8,610' 8,430 8,463 10 Other Western Europe 2,476 4,592 4,350 4,490 4,592 4,535 5,034 4,768 4,792 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 602 1,301 1,265 1,225 1,301 1,298 1,310 1,090 1,299 13 Latin America and Caribbean 1,076 863 695 914 863 1,426 840 563 572 14 Venezuela 188 64 66 64 64 64 64 64 65 15 Other Latin America and Caribbean 656 716 540 674 716 696 574 504 453 16 Netherlands Antilles 232 83 89 176 83 665 201 -6 53 17 Asia 49,543 46,000 47,720 46,301 46,000 45,664 44,797' 45,442 45,584 18 Japan 11,578 13,910 13,446 13,600 13,910 14,012 14,351 14,333 14,543 19 Africa 77 79 79 79 79 79 78 82 85 20 All other 55 40 56 43 40 33 25 22 61 21 Nonmonetary international and regional organizations 4,583 5,120 6,655 5,841 5,120 5,117 5,829 5,279 6,602 22 International 4,186 4,404 6,094 5,030 4,404 4,467 5,139 4,614 5,936 23 Latin American regional 6 6 6 0 6 6 6 6 6 Transactions (net purchases, or sales ( -) during period) 24 Total2 14,972 3,720 3,070 2,367 -1,422 -576 726 610R -463 2,197 25 Foreign countries2 16,072 3,183 1,587 1,635 -615 152 729 -103' 87 874 26 Official institutions 14,550 806 1,584 510 -773 -401 539 64' 483 497 27 Other foreign2 1,518 2,381 2 1,125 158 554 189 -168' -396 377 28 Nonmonetary international and regional organizations -1,097 531 1,482 732 -808 -729 -3 712' -550 1,323 MEMO: Oil-exporting countries 29 Middle East3 7,575 -5,424 -1,964 -373 -968 -60 -515 -773' 46 -722 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 May 31, 1984 Rate on May 31, 1984 Rate on May 31, 1984 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.25 Mar. 1984 France1 11.75 May 1984 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 15.5 May 1984 United Kingdom2. Canada.. 10.84 Apr. 1984 Japan 5.0 Oct. 1983 Venezuela 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

A64 International Statistics • June 1984 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 1984 CCoouunnttrryy,, oorr ttyyppee 11998811 11998822 11998833 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Eurodollars 16.79 12.24 9.57 9.79 10.08 9.78 9.91 10.40 10.83 11.53 2 United Kingdom 13.86 12.21 10.06 9.26 9.34 9.40 9.35 8.90 8.84 9.32 3 Canada 18.84 14.38 9.48 9.40 9.83 9.84 9.85 10.40 10.75 11.52 4 Germany 12.05 8.81 5.73 6.26 6.43 6.07 5.91 5.82 5.81 6.08 5 Switzerland 9.15 5.04 4.11 4.11 4.29 3.65 3.47 3.60 3.61 3.83 6 Netherlands 11.52 8.26 5.58 6.17 6.20 6.01 5.95 6.09 6.04 6.05 7 France 15.28 14.61 12.44 12.31 12.16 12.22 12.36 12.53 12.46 12.16 8 Italy 19.98 19.99 18.95 17.71 17.75 17.75 17.40 17.28 17.38 16.80 9 Belgium 15.28 14.10 10.51 9.89 10.50 10.68 11.43 12.02 11.66 11.80 10 Japan 7.58 6.84 6.49 6.35 6.45 6.35 6.34 6.41 6.26 6.24 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 Dec. Jan. Feb. Mar. Apr. May 1 Australia/dollar1 114.95 101.65 90.14 90.04 90.60 93.48 95.13 92.31 90.61 2 Austria/schilling 15.948 17.060 17.968 19.383 19.815 19.028 18.285 18.630 19.316 3 Belgium/franc 37.194 45.780 51.121 55.939 57.354 55.279 53.135 54.078 55.925 4 Brazil/cruzeiro 92.374 179.22 573.27 943.43 1022.81 1131.37 1266.64 1387.52 1497.64 5 Canada/dollar 1.1990 1.2344 1.2325 1.2469 1.2484 1.2480 1.2697 1.2796 1.2944 6 China, P.R./yuan 1.7031 1.8978 1.9809 1.9920 2.0490 2.0628 2.0646 2.0929 2.1866 7 Denmark/krone 7.1350 8.3443 9.1483 9.9530 10.1793 9.8549 9.5175 9.7311 10.0618 8 Finland/markka 4.3128 4.8086 5.5636 5.8515 5.9385 5.7892 5.6136 5.6434 5.8115 9 France/franc 5.4396 6.5793 7.6203 8.3839 8.5948 8.3051 8.0022 8.1411 8.4435 10 Germany/deutsche mark 2.2631 2.428 2.5539 2.7500 2.8110 2.6984 2.5973 2.6474 2.7484 11 Greece/drachma n.a. 66.872 87.895 98.815 102.601 101.80 102.40 104.89 108.37 12 Hong Kong/dollar 5.5678 6.0697 7.2569 7.8044 7.7968 7.7883 7.7942 7.8073 7.8159 13 India/rupee 8.6807 9.4846 10.1040 10.4895 10.7152 10.744 10.714 10.820 11.017 14 Ireland/pound1 161.32 142.05 124.81 112.91 110.20 114.21 117.88 115.67 111.75 15 Israel/shekel n.a. 24.407 55.865 100.599 116.728 130.21 146.40 168.76 191.56 16 Italy/lira 1138.60 1354.00 1519.30 1666.88 1706.63 1666.39 1614.17 1638.48 1696.32 17 Japan/yen 220.63 249.06 237.55 234.46 233.80 233.60 225.27 225.20 230.48 18 Malaysia/ringgit 2.3048 2.3395 2.3204 2.3407 2.3411 2.3363 2.2933 2.2904 2.3029 19 Mexico/peso 24.547 72.990 155.01 164.84 166.33 168.49 172.93 179.07 198.35 20 Netherlands/guilder 2.4998 2.6719 2.8543 3.0856 3.1602 3.0455 2.9326 2.9864 3.0926 21 New Zealand/dollar1 86.848 75.101 66.790 65.120 64.860 65.810 66.714 65.834 64.892 22 Norway/krone 5.7430 6.4567 7.3012 7.7237 7.8763 7.6937 7.5028 7.5992 7.8100 23 Philippines/peso 7.8113 8.5324 11.0940 14.050 14.050 14.050 14.186 14.257 14.262 24 Portugal/escudo 61.739 80.101 111.610 131.91 136.29 135.01 131.70 134.46 139.85 25 Singapore/dollar 2.1053 2.1406 2.1136 2.1317 2.1309 2.1279 2.0893 2.0853 2.1006 26 South Africa/rand1 114.77 92.297 89.85 82.15 79.54 81.31 82.10 80.19 78.15 27 South Korea/won n.a. 731.93 776.04 799.23 800.33 799.06 794.51 796.41 801.54 28 Spain/peseta 92.396 110.09 143.500 158.01 159.832 154.20 149.68 150.26 154.03 29 Sri Lanka/rupee 18.967 20.756 23.510 24.767 25.181 25.270 25.177 25.133 25.161 30 Sweden/krona 5.0659 6.2838 7.6717 8.0608 8.1782 7.9976 7.7323 7.8444 8.0782 31 Switzerland/franc 1.9674 2.0327 2.1006 2.1983 2.2380 2.2050 2.1490 2.1913 2.2680 32 Taiwan/Dollar n.a. n.a. n.a. 39.613 40.202 40.236 40.078 39.784 39.716 33 Thailand/baht 21.731 23.014 22.991 22.992 23.006 23.000 23.004 23.010 23.010 34 United Kingdom/pound' 202.43 174.80 151.59 143.38 140.76 144.17 145.57 142.10 138.94 35 Venezuela/bolivar 4.2781 4.2981 10.6840 12.834 13.021 13.023 13.470 14.375 15.661 MEMO United States/dollar2 102.94 116.57 125.34 132.84 135.07 131.71 128.07 130.01 133.99 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

A65 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 June 1984 A83 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 commercial banks, December 31, 1983 June 1984 A66 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 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1983 June 1984 A72 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • June 1984 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; December 31, 1983 Millions of dollars Banks with foreign offices2 BBaannkkss wwiitthhoouutt IItteemm IInnssuurreedd ffoorreeiiggnn Total F of o f 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 1,882,877 1,340,730 382,117 1,026,215 542,147 2 Cash and due from depository institutions 298,664 234,045 113,554 120,491 64,619 3 Currency and coin (U.S. and foreign) 16,129 9,573 302 9,271 6,556 4 B B a a l l a a n n c c e e s s w w i i t t h h o F t e h d e e r r a c l e n R tr e a s l e r b v a e n k B s a nks 2 4 0 , , 0 8 9 2 7 8 1 4 4 , , 0 3 9 0 7 7 3,7 1 2 8 7 9 14,1 3 1 7 8 0 6,5 ( 2 4 2 ) 6 Demand balances with commercial banks in United States 20.468 7,635 233 7,402 12,834 7 All other balances with depository institutions in United States and with banks in foreign countries 154,626 132,556 107,989 24,567 22,070 8 Time and savings balances with commercial banks in United States 26,725 18,148 11,080 7,069 8,576 9 Balances with other depository institutions in United States 2,499 2,028 1,782 246 472 10 Balances with banks in foreign countries 125,402 112,380 95,127 17,253 13,022 U 12 O Fo th re e i r g n b a b n r k a s n i c n h e f s o r o e f i g o n t h c e o r u n U t . r S i . e s b anks < (4 4 ) ) 9 1 3 8 , , 5 8 3 5 0 0 8 1 1 4 , , 0 1 1 1 3 4 1 4 2 , , 7 5 3 1 6 8 ( ( 4 4 ) ) 13 Cash items in process of collection 82,515 65,878 1,114 64,763 16,637 14 Total securities, loans, and lease financing receivables 1,440,315 986,408 208,481 777,927 453,908 15 Total securities, book value 299,956 158,062 13,709 144,352 141,895 16 U.S. Treasury 108,112 49,254 144 49,111 58,858 17 Obligations of other U.S. government agencies and corporations 40,561 16,495 23 16,472 24,066 18 Obligations of states and political subdivisions in United States 115,472 62,482 646 61,836 52,990 19 All other securities 35,812 29.831 12,897 16,934 5,981 20 Other bonds, notes, and debentures 16,506 11,828 8,890 2,938 4,678 21 Federal Reserve and corporate stock 2,276 1,513 148 1,364 764 22 Trading account securities 17,030 16,490 3,859 12,631 540 23 Federal funds sold and securities purchased under agreements to resell 68,331 40,382 622 39,761 27,949 24 Total loans, gross 1,081,908 789,921 193,210 596,710 291,988 25 LESS: Unearned income on loans 13,411 6,719 1,614 5,105 6,692 2 77 6 A A l l l l o o w ca a t n ed ce tr fo a r n s p fe o r s s r ib is l k e r lo es a e n r v lo es s s 12,957 6 9,489 6 ( 36 4 0 ) 9,129 6 3,46 * 8 28 EQUALS: Loans, net 1,055,534 773,706 191,235 582,472 281,827 Total loans, gross, by category 3 3 3 3 3 3 3 3 2 3 3 9 6 7 5 4 3 2 1 9 8 0 Re S C S S a e l e e o c M c c n e u u u s s u C r C r r F t t l e e e r a H o o t d d d u t i n n e f A c a v v b b b t - m l e e i y y y i o o n n n i a n t l t f n s r n y i a i u e o o o s a r s r n n n n m i e d f a a d d a l e l l a r n l n m o a t d r i n a d n l V o d A p n e r - r v o g e e p u s l i e a o d r r p e t a n i m n e t s t i e e a n e l t d p roperties 252,0 ( ( ( ( ( ( ( ( ( ( ( ( ( ( 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 ) ) ) ) ) ) ) ) ) ) ) ) ) ) 150. ( ( ( ( ( ( ( ( ( ( 19 4 4 4 4 4 4 4 4 4 4 9 ) ) ) ) ) ) ) ) ) ) 8, ( ( ( ( 7 ( ( ( ( ( ( 8 4 4 4 4 4 4 4 4 4 4 0 ) ) ) ) ) ) ) ) ) ) 1 2 6 6 3 7 4 4 4 9 3 4 7 8 2 1 1 , , , , , , , , , , 9 6 4 4 5 1 2 2 2 4 0 2 6 3 0 3 0 1 6 0 8 2 1 5 8 4 7 0 0 1 2 7 0 1 4 5 5 3 0 1 9 4 1 2 2 2 0 1 4 1 , , , , , , , , , , 3 5 9 2 6 5 8 8 9 7 6 6 3 7 0 4 3 7 9 4 9 7 9 3 0 8 4 6 4 2 0 3 40 105,546 97,228 31,809 65,419 8,319 41 REITs and mortgage companies in United States 4,981 4,348 58 4,290 634 4 4 4 ? 3 4 Co O U m t . m h S. e e r r b c c r i o a a m n l c m b h a e e n s r k c a i s a n l i d n b a U a g n n e k n it s c e i d e s S o ta f t f e o s r eign banks 18, ( ( 14 4 4 9 ) ) 1 6 5 2 , , , 8 9 7 5 0 5 1 8 9 7 6 1 7 0 7 9 4 5 1 6 5 1 , , , 6 3 9 7 0 8 6 4 0 5, ( ( 39 4 4 0 ) ) 4 4 4 5 7 6 Ba O F n o k th r s e e i r in g n f o b r r e a ig n n c h c e o s u o n f t r o i t e h s er U.S. banks 48,6 ( ( 1 4 4 8 ) ) 4 4 8 7 , , 0 2 7 6 8 8 6 4 2 2 2 2 1 , , 3 9 3 4 7 7 1 0 1 2 25 5 , , 7 3 4 2 1 1 4 4 1 ( ( 55 4 4 2 ) ) 48 Finance companies in United States 10,798 10,273 391 9,882 526 49 Other financial institutions 23,000 21,783 8,240 13,543 1,217 50 Loans for purchasing or carrying securities 18,496 15,787 2,176 13,611 2,709 51 Brokers and dealers in securities 12,391 11,515 1,558 9,958 875 5? 6,106 4,272 618 3,653 1,834 53 Loans to finance agricultural production and other loans to farmers 14,231 7,997 856 7,141 6,233 5 5 5 5 6 4 N U o .S n . -U ad .S d . r e a s d se d e r s e s ( s d e o e m s i ( c d i o le m ) icile) 464,0 ( ( 8 4 4 6 ) ) 2 3 1 3 7 3 9 2 3 . , . 4 6 2 8 9 0 2 0 8 1 12 0 1 0 2 7 , , , 4 4 9 1 4 7 2 2 0 2 25 2 3 2 1 0 , , , 2 5 7 7 1 6 8 2 6 91,3 ( ( 9 4 4 5 ) ) 6 6 6 6 6 6 6 5 6 5 6 5 0 1 ? 4 5 6 8 9 7 8 3 7 Lo S a i n n P C O s g a r t l R C R t O e s h e o s d e e - h e t e p r i t h s i e t n a n i a e c d i g i d r c y k l n e e a m i s r n v i ( r a t n c i t e d a n d h a s i n l s a d t u a u l t a l m r a t a l r o g l n l p l e e o s m e m d n r v a o t f e o o a n o r p n b l c s l r e v e t o c i l r i l a a o h n l e t t n o u y o s g e s a n u d r n c t s e ) s r e p p e h c l f a d a o r o i i n e r r l t d s d h a , i t n o f d u c a a s m m e r i d h l o y o d , l e d a r , n n f d i a z m a o t t i i h l o y 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 166, ( ( ( ( ( ( ( ( 9 ( ( ( ( ( 6 4 4 4 4 4 4 4 4 4 4 4 4 4 1 ) ) ) ) ) ) ) ) ) ) ) ) ) 90, ( ( ( ( ( ( 2 ( ( ( ( ( 1 4 4 4 4 4 4 4 4 4 4 4 2 ) ) > ) ) ) ) ) ) ) ) 6, ( ( ( ( ( 5 ( ( ( ( ( ( 2 4 4 4 4 4 4 4 4 4 4 4 8 ) ) ) ) ) ) ) ) ) ) ) 6 2 2 8 1 1 1 1 4 8 3 8 3 3 4 9 3 7 0 5 , , , , , , , , , , , , 1 5 5 4 6 1 1 3 1 8 5 2 2 2 9 2 8 0 7 4 1 2 6 6 1 3 8 0 4 5 0 2 3 3 8 4 6 7 2 1 1 1 1 1 3 6 6 4 2 3 3 4 2 8 0 3 , , , , , , , , , , , , 0 7 7 1 5 1 4 5 3 3 6 7 6 1 5 3 5 1 3 1 5 1 8 6 8 1 0 3 2 0 6 0 9 5 1 8 69 60,544 55,807 22,650 33,157 4,737 7 7 0 1 Loans to foreign governments and official institutions ( ( 4 4 ) ) 4 1 0 5 , , 4 3 9 1 7 0 2 2 0 , , 1 51 3 9 2 1 1 3 9 , , 1 9 7 7 8 9 ( ( 4 4 ) ) 72 Lease financing receivables 16.494 14,257 2,916 11,342 2,237 73 Bank premises, furniture and fixtures, and other assets representing bank premises 27,747 17,331 1,859 15,472 10,415 74 Real estate owned other than bank premises 3,698 2,176 97 2,079 1,522 75 Intangible assets 1,506 921 0 0 585 76 All other assets 110,947 99,849 58.125 110,247 11,098 77 Investment in unconsolidated subsidiaries and associated companies 2,018 1,810 1,339 471 208 7 7 8 8 8 9 1 0 C N u e N U t s t o . d o S n u m . - e U e a r f d . r s S d o ' . r m l e a i s a d f s b o d e i r e l r i e s e t i y s g ( s n d e o o e n b m s r a a i ( c c d n c i o c l e e m h p ) e t i s c a , i n l f e c o ) e r s e i o g u n t s s t u a b n s d i i d n i g a ries, Edge and agreement subsidiaries .... 66,4 ( ( ( 1 4 4 4 4 ) ) ) 6 4 1 5 7 8 , , , 9 ( 5 4 8 3 5 4 6 6 0 ) 3 1 3 4 , , 4 ( ( 1 0 9 4 4 2 0 ) ) 3 51 4 , , ( ( 7 2 9 0 4 4 6 0 ) ) ( ( 4 ( 2 4 4 4 8 ) ) > 82 42,516 32,053 9,195 23,780 10,462 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A67 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 83 Total liabilities and equity capital5 1,882,877 1,340,730 (4) (4) 542,147 84 Total liabilities excluding subordinated debt 1,774,347 1,270,678 381,658 956,622 503,670 85 Total deposits 1,438,492 985,257 308,395 676,862 453,235 86 Individuals, partnerships, and corporations 1,154,796 746,008 168,496 577,512 408,787 8V U.S. government 2,851 1,832 246 1,586 1,020 88 States and political subdivisions in United States 53,720 24,755 767 23,987 28,965 89 All other 212,690 202,475 138,341 64,134 10,214 90 Foreign governments and official institutions 29,799 29,514 18,160 11,354 285 91 Commercial banks in United States 73,605 64,238 30,135 34,103 9,368 92 U.S. branches and agencies of foreign banks (4) 5,576 3,258 2,317 (4) 93 Other commercial banks in United States (4) 58,662 26,876 31,786 (4) 94 Banks in foreign countries 109,285 108,723 90,046 18,677 562 95 Foreign branches of other U.S. banks (4) 17,264 14,803 2,461 (4) 96 Other banks in foreign countries (4) 91,459 75,243 16,216 (4) 97 Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,436 10,187 544 9,643 4,248 98 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 171,232 135,100 629 134,472 36,131 99 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 52,919 47,693 18,103 29,590 5,226 100 Interest-bearing demand notes (note balances) issued to U.S. Treasury 8,309 6,531 (4) 6,531 1,778 101 Other liabilities for borrowed money 44,610 41,162 18,103 23,059 3,448 102 Mortgage indebtedness and liability for capitalized leases 2,357 1,523 11 1,512 834 103 All other liabilities 109,348 101,104 54,521 114,185 8,243 104 Acceptances executed and outstanding 66,748 66,320 11,692 54,628 427 105 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries (4) (4) 34,200 33,402 (4) 106 Other 42,600 34,784 8,628 26,155 7,816 107 Subordinated notes and debentures 6,443 4,937 459 4,478 1,507 108 Total equity capital5 102,087 65,116 (4) (4) 36,971 109 Preferred stock 585 453 (4) (4) 132 110 Common stock 18,224 11,745 (4) (4) 6,479 111 Surplus 34,444 20,673 (4) (4) 13,770 112 Undivided profits and reserve for contingencies and other capital reserves 48,834 32,244 (4) (4) 16,590 113 Undivided profits 48,065 31,935 (4) (4) 16,130 114 Reserve for contingencies and other capital reserves 770 309 (4) (4) 460 MEMO Deposits in domestic offices 115 Total demand 312,010 205,815 0 205,815 106,195 116 Total savings 331,980 178,002 0 178,002 153,978 117 Total time 486,108 293,045 0 293,045 193,062 118 Time deposits of $100,000 or more 249,756 181,173 0 181,173 68,582 119 Certificates of deposit (CDs) in denominations of $100,000 or more 202,415 138,282 0 138,282 64,133 120 Other 47,341 42,891 0 42,891 4,450 121 Super NOW accounts 16,752 7,631 7,631 7,631 9,121 122 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 47,727 24,029 0 24,029 23,699 123 All other savings deposits that are subject to a federal regulatory interest rate ceiling 92,639 45,859 45,859 45,859 46,780 124 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 22,001 11,306 0 11,306 10,695 125 Demand deposits adjusted6 200,2% 118,792 0 118,792 81,504 1 1 2 2 7 6 Sta U n . d S b . y a d le d tt r e e r s s s e o e f s c ( r d e o d m it, i c t i o le t ) a l, and guarantees issued by the reporting bank's foreign offices. 117, ( 40 4 3 ) 1 8 0 3 9 , , 4 8 9 9 1 2 21, < 15 4 8 ) 88,7 ( 3 4 4 ) 7,5 ( 1 4 1 ) 128 Non-U.S. addressees (domicile) <4) 26,401 (4) (4) (4) 129 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 9,845 9,460 583 8,877 385 130 Holdings of commercial paper included in total gross loans <4) (4) (4) 635 1,126 Average for 30 calendar days (or calendar month) ending with report date 131 Total assets 1,846,892 1,317,840 309,171 1,008,670 529,052 132 Cash and due from depository institutions 277,028 221,417 110,897 110,520 55,611 133 Federal funds sold and securities purchased under agreements to resell 72,820 43,324 664 42,660 29,496 134 Total loans 1,055,892 774,631 193,110 581,520 281,261 135 Total deposits 1,392,501 950,867 299,341 651,526 441,634 136 Time CDs in denominations of $100,000 or more in domestic offices 197,549 (4) (4) 135,332 62,216 137 Federal funds purchased and securities sold under agreements to repurchase 181,143 146,335 665 145,670 34,808 138 Other liabilities for borrowed money 44,696 41,527 17,000 24,526 3,169 139 Number of banks 1,829 195 195 195 1,634 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • June 1984 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over Consolidated Report of Condition; December 31, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,568,362 1,318,707 1,014,410 304,297 249,655 2 Cash and due from depository institutions 185,110 158,266 120,179 38,087 26,844 3 Currency and coin (U.S. and foreign) 15,827 13,403 10,781 2,622 2,424 4 Balances with Federal Reserve Banks 20,639 18,319 14,030 4,289 2,320 5 Balances with other central banks 370 369 336 33 1 6 Demand balances with commercial banks in United States 20,236 13,344 10,990 2,354 6,892 7 All other balances with depository institutions in United States and with banks in foreign countries 46,637 35,975 28,654 7,321 10,662 8 Time and savings balances with commercial banks in United States 15,645 11,344 9,488 1,856 4,301 9 Balances with other depository institutions in United States 717 359 338 21 358 10 Balances with banks in foreign countries 30,275 24,272 18,828 5,444 6,003 11 Cash items in process of collection 81,401 76,857 55,388 21,469 4,544 12 Total securities, loans, and lease financing receivables 1,231,834 1,023,816 790,596 233,220 208,018 13 Total securities, book value 286,247 223,383 171,325 52,058 62,865 14 U.S. Treasury 107,968 82,318 64,596 17,722 25,650 15 Obligations of other U.S. government agencies and corporations 40,538 29,145 24,309 4,836 11,392 16 Obligations of states and political subdivisions in United States 114,826 92,261 69,140 23,121 22,565 17 All other securities 22,915 19,658 13,278 6,380 3,257 18 Other bonds, notes, and debentures 7,616 4,901 3,826 1,075 2,716 19 Federal Reserve and corporate stock 2,128 1,721 1,342 379 407 20 Trading account securities 13,171 13,036 8,111 4,926 134 21 Federal funds sold and securities purchased under agreements to resell 67,709 57,882 44,458 13,425 9,827 72 Total loans, gross 888,698 750,445 580,773 169,672 138,253 23 LESS: Unearned income on loans 11,797 9,197 6,979 2,219 2,600 24 Allowance for possible loan loss 12,597 11,018 8,477 2,541 1,579 75 Allocated transfer risk reserves 6 6 6 0 * 26 EQUALS: Loans, net 864,299 730,225 565,312 164,913 134,074 Total loans, gross, by category 77 243,264 194,117 116633,,336677 30,750 49,147 28 Construction and land development 53,118 44,451 35,941 8,509 8,667 29 Secured by farmland 2,862 2,074 1,880 195 787 30 Secured by residential properties 126,771 101,451 86,529 14,922 25,320 31 1- to 4-family 119,174 95,415 81,504 13,911 23,759 32 FHA-insured or VA-guaranteed 6,369 5,600 4,622 978 769 33 Conventional 112,804 89,815 76,882 12,933 22,990 34 Multifamily 7,598 6,037 5,025 1,011 1,561 3S FHA-insured 354 267 145 122 87 36 Conventional 7.244 5,770 4,880 890 1,474 37 Secured by nonfarm nonresidential properties 60,513 46,141 39,017 7,124 14,372 Loans to financial institutions 73,738 67,862 42,904 24,958 5,875 39 REITs and mortgage companies in United States 4,923 4,672 3,634 1,039 251 40 Commercial banks in United States 17,370 13,065 9,265 3,800 4,305 41 Banks in foreign countries 26,277 25,673 14,480 11,193 603 42 Finance companies in United States 10,407 10,146 6,481 3,665 262 43 Other financial institutions 14,760 14,306 9,044 5,262 454 44 Loans for purchasing or carrying securities 16,320 15,357 9,273 6,084 963 45 Brokers and dealers in securities 10,833 10,373 5,402 4,971 460 46 5,487 4,984 3,871 1,113 503 47 Loans to finance agricultural production and other loans to farmers 13,375 11,754 10,425 1,329 1,621 48 Commercial and industrial loans 343,674 295,592 223,217 72,375 48,082 49 Loans to individuals for household, family, and other personal expenditures 160,433 130,588 108,439 22,149 29,846 50 Installment loans 131,488 106,990 89,769 17,221 24,498 51 Passenger automobiles 46,103 34,937 29,049 5,887 11,166 57 Credit cards and related plans 42,632 39,209 33,072 6,136 3,423 53 Retail (charge account) credit card 35,958 33,334 28,316 5,018 2,623 54 Check and revolving credit 6,675 5,875 4,756 1,119 800 55 6,615 5,320 4,928 391 1,295 56 Other installment loans 36,138 27,525 22,719 4,806 8,613 57 Other retail consumer goods 7,578 6,102 5,111 991 1,476 58 Residential property repair and modernization 7,223 5,177 4,309 868 2,047 59 Other installment loans for household, family, and other personal expenditures 21,337 16,246 13,299 2,946 5,091 60 Single-payment loans 28,945 23,598 18,670 4,928 5,347 61 All other loans 37,894 35,176 23,149 12,027 2,718 62 13,578 12,326 9,502 2,825 1,252 63 Bank premises, furniture and fixtures, and other assets representing bank premises 25,887 21,039 16,818 4,221 4,848 64 Real estate owned other than bank premises 3,601 2,831 2,334 497 770 65 Intangible assets 585 374 354 20 211 66 121,345 112,380 84,129 28,251 8,965 67 Investment in unconsolidated subsidiaries and associated companies 679 505 324 182 173 68 Customers' liability on acceptances outstanding 52,224 51,396 37,671 13,725 828 69 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries .... 34,200 31,316 24,968 6,348 2,884 70 34,242 29,162 21,166 7,996 5,080 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 71 Total liabilities and equity capital8 1,568,362 1,318,707 1,014,410 304,297 249,655 72 Total liabilities excluding subordinated debt 1,460,291 1,228,161 945,878 282,283 232,130 73 Total deposits 1,130,097 917,800 723,720 194,079 212,298 74 Individuals, partnerships, and corporations 986,300 794,538 636,347 158,191 191,762 75 U.S. government 2,605 2,182 1,765 417 423 76 States and political subdivisions in United States 52,953 39,444 32,707 6,737 13,509 77 All other 74,348 69,911 45,607 24,304 4,437 78 Foreign governments and official institutions 11,639 11,242 6,198 5,044 396 79 Commercial banks in United States 43,470 40,334 29,078 11,256 3,136 80 Banks in foreign countries 19,239 18,335 10,332 8,003 904 81 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,891 11,725 7,295 4,430 2,166 82 Demand deposits 312,010 265,381 198,043 67,338 46,629 83 Mutual savings banks 1,126 978 604 374 148 84 Other individuals, partnerships, and corporations 247,441 207,028 157,806 49,221 40,413 85 2,094 1,773 1,392 381 322 86 States and political subdivisions in United States 10,973 9,090 7,223 1,867 1,883 87 All other 36,484 34,788 23,723 11,065 1,696 88 Foreign governments and official institutions 1,004 947 600 347 57 89 Commercial banks in United States 28,219 26,797 20,057 6,740 1,422 90 Banks in foreign countries 7,260 7,043 3,065 3,978 217 91 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,891 11,725 7,295 4,430 2,166 9? Time deposits 486,108 391,223 311,146 80,077 94,885 93 Mutual savings banks 134 104 81 23 30 94 Other individuals, partnerships, and corporations 410,608 328,941 266,383 62,558 81,667 95 U.S. government 425 334 303 31 91 % States and political subdivisions in United States 37,216 26,839 22,610 4,230 10,377 97 All other 37,724 35,004 21,769 13,235 2,720 98 Foreign governments and official institutions 10,554 10,216 5,520 4,696 338 99 Commercial banks in United States 15,191 13,497 8,983 4,514 1,694 100 Banks in foreign countries 11,979 11,291 7,266 4,025 687 101 Savings deposits 331,980 261,196 214,531 46,664 70,784 107 Mutual savings banks 1 1 1 0 * 103 Other individuals, partnerships, and corporations 326,989 257,485 211,471 46,014 69,504 104 Individuals and nonprofit organizations 288,909 228,558 187,270 41,288 60,351 105 Corporations and other profit organizations 38,080 28,927 24,201 4,726 9,153 106 U.S. government 86 75 71 5 10 107 States and political subdivisions in United States 4,763 3,515 2,874 641 1,248 108 All other 141 119 115 4 21 109 Foreign governments and official institutions 80 79 77 1 11 no Commercial banks in United States 61 40 38 3 2200 111 Banks in foreign countries * * * * 112 Federal funds purchased and securities sold under agreements to repurchase 170,603 158,773 116,226 42,547 11,830 113 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 34,817 32,649 19,354 13,295 2,168 114 Interest-bearing demand notes (note balances) issued to U.S. Treasury 8,309 7,561 5,494 2,067 749 115 Other liabilities for borrowed money 26,507 25,088 13,861 11,228 1,419 116 Mortgage indebtedness and liability for capitalized leases 2,346 1,913 1,607 306 433 117 All other liabilities 122,429 117,026 84,970 32,056 5,402 118 Acceptances executed and outstanding 55,055 54,227 40,442 13,786 828 119 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 33,402 32,515 22,985 9,530 887 P0 33,972 30,284 21,543 8,741 3,688 121 Subordinated notes and debentures 5,984 4,995 3,000 1,995 990 122 Total equity capital8 102,086 85,551 65,532 20,019 16,535 MEMO 12,3 Time deposits of $100,000 or more 249,756 208,307 159,245 49,062 41,448 124 Certificates of deposit (CDs) in denominations of $100,000 or more 202,415 164,445 128,995 35,450 37,969 P5 Other 47,341 43,862 30,350 13,612 3,479 126 Super NOW accounts 16,752 12,917 11,164 1,753 3,836 127 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer). 47,727 37,203 31,067 6,136 10,524 128 All other savings deposits that are subject to a federal regulatory interest rate ceiling 92,639 72,156 58,629 13,526 20,483 129 Total Individual Retirement Accounts (IRA) and Keogh Plan accounts 22,001 17,281 14,259 3,022 4,720 130 Demand deposits adjusted6 200,296 159,954 121,206 38,748 40,342 131 Standby letters of credit 96,245 92,345 57,527 34,818 3,900 132 Conveyed to others through participation (included in standby letters of credit) 9,262 9,117 5,379 3,738 145 133 Holdings of commercial paper included in total gross loans 1,761 1,250 783 468 511 Average for 30 calendar days (or calendar month) ending with report date 134 Total assets 1,537,721 1,294,065 993,724 300,342 243,656 135 Cash and due from depository institutions 166,131 142,976 107,647 35,329 23,155 136 Federal funds sold and securities purchased under agreements to resell 72,156 61,452 48,527 12,925 10,704 137 Total loans 862,782 728,926 562,865 166,061 133,856 138 Total deposits 1,093,160 886,558 699,801 186,757 206,602 139 Time CDs in denominations of $100,000 or more in domestic offices 197,549 160,565 126,270 34,295 36,984 140 Federal funds purchased and securities sold under agreements to repurchase 180,478 168,811 123,818 44,994 11,667 141 Other liabilities for borrowed money 27,695 26,211 13,469 12,742 1,484 142 Number of banks 1,829 1,116 944 172 713 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • June 1984 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities"' Consolidated Report of Condition; December 31, 1983 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 2,018,498 1,510,829 1,175,411 335,418 507,668 2 Cash and due from depository institutions 225,151 176,625 135,667 40,957 48,527 3 Currency and coin (U.S. and foreign) 21,004 15,732 12,729 3,003 5,272 4 Balances with Federal Reserve Banks 23,221 20,115 15,527 4,588 3,106 Balances with other central banks 370 369 336 33 1 6 Demand balances with commercial banks in United States 36,916 19,263 16,035 3,227 17,653 7 All other balances with depository institutions in United States and with banks in foreign countries 58,835 42,198 33,924 8,274 16,638 8 Cash items in process of collection 84,805 78,949 57,116 21,833 5,856 9 Total securities, loans, and lease financing receivables 1,622,168 1,189,274 929,132 260,143 432,894 10 Total securities, book value 425,672 281,813 220,051 61,762 143,859 11 U.S. Treasury 166,789 106,970 84,906 22,063 59,819 12 Obligations of other U.S. government agencies and corporations 76,381 43,737 36,495 7,242 32,644 N Obligations of states and political subdivisions in United States 157,185 110,292 84,396 25,896 46,893 14 25,318 20,814 14,253 6,560 4,504 15 Federal funds sold and securities purchased under agreements to resell 92,368 69,136 53,903 15,233 23,232 16 Total loans, gross 1,122,380 849,484 663,847 185,637 272,896 17 LESS: Unearned income on loans 17,363 11,608 8,969 2,640 5,755 18 Allowance for possible loan loss 15,040 12,099 9,399 2,701 2,941 19 Allocated transfer risk reserves 6 6 6 0 * 20 EQUALS: Loans, net 1,089,972 825,772 645,474 180,297 264,200 Total loans, gross, by category 21 Real estate loans 327,042 229,025 192,225 36,800 98,016 22 Construction and land development 60,470 47,561 38,737 8,824 12,910 23 Secured by farmland 9.291 4,245 3,603 642 5,046 24 Secured by residential properties 175,967 122,513 103,679 18,834 53,454 75 1- to 4-family 166,686 115,820 98,096 17,724 50,866 26 Multifamily 9.281 6,693 5,583 1,110 2,588 27 Secured by nonfarm nonresidential properties 81,313 54,707 46,206 8,501 26,606 28 77,234 69,555 44,412 25,143 7,679 29 Loans for purchasing or carrying securities 17,039 15,667 9,547 6,120 1,371 30 Loans to finance agricultural production and other loans to farmers 39,024 21,428 18,351 3,077 17,596 31 Commercial and industrial loans 403,309 321,469 245,297 76,171 81,840 32 Loans to individuals for household, family, and other personal expenditures 217,110 155,569 129,518 26,052 61,541 33 Installment loans 172,889 125,514 105,400 20,114 47,375 34 Passenger automobiles 67,214 44,007 36,598 7,409 23,207 35 Credit cards and related plans 45,175 41,085 34,869 6,216 4,091 36 Mobile homes 9,603 6,625 5,992 633 2,978 37 All other installment loans for household, family, and other personal expenditures 50,896 33,797 27,940 5,856 17,099 38 44,221 30,055 24,118 5,937 14,166 39 41,623 36,770 24,496 12,274 4,853 40 Lease financing receivables 14,157 12,554 9,704 2,851 1,602 41 Bank premises, furniture and fixtures, and other assets representing bank premises 34,625 24,797 19,990 4,807 9,827 42 Real estate owned other than bank premises 5,044 3,365 2,763 602 1,679 43 Intangible assets 700 448 425 23 252 44 All other assets 130.810 116,320 87,434 28,886 14,490 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 45 Total liabilities and equity capital8 2,018,498 1,510,829 1,175,411 335,418 507,668 46 Total liabilities excluding subordinated debt 1,871,893 1,403,825 1,093,088 310,738 468,067 47 Total deposits 1,526.896 1,085,875 864,399 221,476 441,021 48 Individuals, partnerships, and corporations 1,347,630 948,088 764,810 183,278 399,542 49 U.S. government 3,376 2,506 2,031 475 871 50 States and political subdivisions in United States 82.780 51,356 42,771 8,585 31,424 51 All other 75,589 70,606 46,162 24,444 4,983 52 Certified and officers' checks, travelers checks, and letters of credit sold for cash 17,521 13,320 8,626 4,694 4,201 53 Demand deposits 388,145 298,256 225,852 72,405 89,889 54 Individuals, partnerships, and corporations 315,482 236,839 182,850 53,990 78,642 55 U.S. government 2,700 2,024 1,605 419 676 56 States and political subdivisions in United States 15,355 10,887 8,737 2,150 4,468 57 All other 37,088 35,186 24,033 11,153 1,901 58 Certified and officers' checks, travelers checks, and letters of credit sold for cash 17,521 13,320 8,626 4,694 4,201 59 Time deposits 677,596 470,378 377,286 93,092 207,218 60 Other individuals, partnerships, and corporations 581,617 400,025 325,679 74,345 181,592 61 U.S. government 561 391 341 50 170 62 States and political subdivisions in United States 57,115 34,683 29,271 5,412 22,433 63 All other 38,302 35,280 21,995 13,285 3,022 64 Savings deposits 461,155 317,241 261,262 55,979 143,914 65 Corporations and other profit organizations 45,844 32,195 26,959 5,235 13,650 66 Other individuals, partnerships, and corporations 404,686 279,029 229,321 49,708 125,657 67 U.S. government 115 91 85 6 24 68 States and political subdivisions in United States 10,309 5,786 4,763 1,023 4,523 69 All other 200 140 134 6 60 70 Federal funds purchased and securities sold under agreements to repurchase 176,830 162,377 119,281 43,096 14,454 71 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 36,854 33,889 20,513 13,377 2,965 72 Mortgage indebtedness and liability for capitalized leases 2,763 2,074 1,741 334 689 73 All other liabilities 128,549 119,610 87,154 32,455 8,939 74 Subordinated notes and debentures 6,565 5,307 3,289 2,018 1,257 75 Total equity capital8 140,040 101,697 79,035 22,662 38,344 MEMO 76 Time deposits of $100,000 or more 295,470 227,901 176,203 51,699 67,569 77 Certificates of deposit (CDs) in denominations of $100,000 or more 245,354 182,865 144,928 37,937 62,489 78 Other 50,116 45,036 31,275 13,762 5,080 79 Super NOW accounts 29,548 18,208 15,528 2,680 11,340 80 Other NOW accounts and ATS accounts (savings deposits authorized for automatic transfer).. 70,171 46,877 39,209 7,669 23,294 81 All other savings deposits that are subject to a federal regulatory interest rate ceiling 131,860 89,199 72,598 16,601 42,662 82 Total Individual Retirement Accounts (IRA) and Keogh plan accounts 30,378 20,717 17,130 3,587 9,661 83 Demand deposits adjusted6 271,820 190,089 146,763 43,325 81,731 84 Total standby letters of credit 98.434 93,317 58,354 34,963 5,117 Average for 30 calendar days (or calendar month) ending with report date 85 Total deposits 1,483,666 1,051,752 838,061 213,691 431,914 86 Number of banks 14,451 5,804 4,752 1,052 8,647 1. Effective Dec. 31, 1978, the report of condition was substantially revised for 3. Foreign offices include branches in foreign countries and in U.S. territories commercial banks. Commercial banks with assets less than $100 million and with and possessions, subsidiaries in foreign countries, and all offices of Edge Act and domestic offices only were given the option to complete either the abbreviated or agreement corporations wherever located. the standard set of reports. Banks with foreign offices began reporting in greater 4. This item is unavailable for all or some of the banks because of the lesser detail on a consolidated domestic and foreign basis. These tables reflect the detail available from banks without foreign offices, the inapplicability of certain varying levels of reporting detail. items to banks that have only domestic offices, and the absence of detail on a fully Beginning Dec. 3, 1981, depository institutions may establish international consolidated basis for banks with foreign offices. banking facilities (IBFs). Activity of IBFs established by U.S. commercial banks 5. Equity capital is not allocated between the domestic and foreign offices of is reflected in the appropriate asset and liability line items in the domestic office banks with foreign offices. portion of the tables. Activity of IBFs established by Edge Act and Agreement 6. Demand deposits adjusted equal demand deposits other than domestic subsidiaries of U.S. commercial banks is reflected in the appropriate asset and commercial interbank and U.S. government less cash items in process of liability line items in the foreign office portion of the tables. When there is a collection. column for fully consolidated foreign and domestic data, activity of IBFs is 7. Domestic offices exclude branches in foreign countries and in U.S. terrireflected in the appropriate asset and liability line items in that portion of the tories and possessions, subsidiaries in foreign countries, and all offices of Edge tables. Act and Agreement corporations wherever located. 2. All transactions between domestic and foreign offices of a bank are reported 8. This item contains the capital accounts of U.S. banks that have no Edge or in "Net due from" and "Net due to" (lines 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

A66 Special Tables • June 1984 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1983' Millions of dollars All states2 New York Other CCaallii-ffoorrnniiaa,, Total Branches3 Agencies Branches3 Agencies ttoottaall44 branches Branches 1 Total assets5 228,417 176,063 52,354 155,045 7,255 41,786 10,465 7,988 2 Cash and due from depository institutions 40,967 37,239 3,728 34,703 633 3,276 1,720 369 3 Currency and coin (U.S. and foreign) 24 21 3 17 1 1 2 1 4 Balances with Federal Reserve Banks 928 861 67 711 20 49 30 103 5 Balances with other central banks 20 17 3 11 0 3 6 0 6 Demand balances with commercial banks in United States 1,489 1,244 245 1,121 84 140 62 39 7 All other balances with depository institutions in United States and with banks in foreign countries 38,260 34,852 3,407 32,609 527 3,079 1,616 223 8 Time and savings balances with commercial banks in United States 18,592 16,561 2,032 15,209 360 1,755 1,009 160 9 Balances with other depository institutions in United States 161 157 4 156 0 0 1 0 10 Balances with banks in foreign countries 19,507 18,135 1,372 17,244 167 1,323 607 62 11 Foreign branches of U.S. banks 1,166 1,129 37 1,064 10 11 44 22 12 Other banks in foreign countries 18,340 17,005 1,335 16,180 157 1,312 563 40 13 Cash items in process of collection 248 244 4 235 1 4 4 3 14 Total securities, loans, and lease financing receivables 137,721 104,523 33,198 90,694 5,182 25,182 7,793 4,185 15 Total securities, book value 8,853 8,308 545 7,981 75 541 207 32 16 U.S. Treasury 5,232 5,155 77 5,039 43 56 70 24 17 Obligations of other U.S. government agencies and corporations 514 493 21 484 2 16 5 2 18 Obligations of states and political subdivisions in United States 76 67 10 43 0 1 23 1 19 Other bonds, notes, debentures, and corporate stock .. 3,031 2,594 436 2,415 30 469 109 4 20 Federal funds sold and securities purchased under agreements to resell 9,051 7,517 1,534 6,984 721 757 396 100 By holder 21 Commercial banks in United States 8,229 66,,992299 1,299 6,397 495 757 396 100 22 Others 822 558888 235 588 226 0 0 0 By type 23 One-day maturity or continuing contract 8,871 7,338 1,534 6,805 721 757 396 100 24 Securities purchased under agreements to resell 193 132 61 84 27 15 8 40 25 Other 8,678 7,206 1,472 6,721 694 742 388 60 26 Other securities purchased under agreements to resell 179 179 0 179 0 0 0 0 27 Total loans, gross 129,144 96,439 32,705 82,927 5,114 24,686 7,594 4,155 28 LESS: Unearned income on loans 276 224 52 214 7 45 7 2 29 EQUALS: Loans, net 128,868 96,215 32,653 82,713 5,107 24,640 7,586 4,153 Total loans, gross, by category 30 Real estate loans 5,266 2,198 3,067 1,457 16 2,177 145 447 31 Loans to financial institutions 48,181 36,884 11,297 32,845 1,299 9,753 3,075 419 32 Commercial banks in United States 25,000 18,709 6,292 16,476 406 6,149 1,577 258 33 U.S. branches and agencies of other foreign banks ., 22,089 16,066 6,023 14,174 346 5,983 1,272 236 34 Other commercial banks 2,912 2,643 269 2,303 60 166 305 22 35 Banks in foreign countries 20,758 16,052 4,705 14,691 721 3,497 1,060 160 36 Foreign branches of U.S. banks 676 538 138 473 12 138 43 10 37 Other 20,082 15,514 4,567 14,218 709 3,359 1,017 150 38 Other financial institutions 2,423 2,123 300 1,678 171 107 438 1 39 Loans for purchasing or carrying securities 1,387 1,380 7 1,295 6 85 0 1 40 Commercial and industrial loans 56,395 42,318 14,076 34,533 2,015 10,672 3,806 3,092 41 U.S. addressees (domicile) 32,782 23,821 8,961 17,594 419 7,601 3,254 2,226 42 Non-U.S. addressees (domicile) 23,612 18,498 5,115 16,939 1,596 3,072 552 866 43 Loans to individuals for household, family, and other personal expenditures 219 186 34 132 2 33 9 35 44 All other loans 17,696 13,473 4,224 12,665 1,776 1,965 560 161 45 Loans to foreign governments and official institutions 15,953 11,869 4,084 11,162 1,712 1,906 519 111 46 Other 1,743 1,604 140 1,502 64 59 41 49 47 Lease financing receivables 0 0 0 0 0 0 0 0 48 All other assets 40,678 26,784 13,894 22,664 720 12,571 556 3,334 49 Customers' liability on acceptances outstanding ... 13,263 10,234 3,029 9,759 88 2,838 298 175 50 U.S. addressees (domicile) 8,763 6,313 2,451 6,003 6 2,418 283 25 51 Non-U.S. addressees (domicile) 4,500 3,921 579 3,755 82 420 15 151 52 Net due from related banking institutions6 21,686 12,001 9,685 8,785 435 8,836 3 3,063 53 Other 5,729 4,549 1,180 4,120 196 897 256 95 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A73 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 228,417 176,063 52,354 155,045 7,255 41,786 10,465 7,988 5,878 55 Total deposits and credit balances 112,381 97,900 14,481 88,422 2,411 11,652 3,255 4,743 1,898 56 Individuals, partnerships, and corporations 37,826 35,263 2,563 29,321 99 1,446 932 4,420 1,607 57 U.S. addressees (domicile) 23,236 23,172 64 17,746 19 325 787 4,330 28 58 Non-U.S. addressees (domicile) 14,590 12,092 2,499 11,574 80 1,121 145 91 1,579 59 U.S. government, states, and political subdivisions in United States 68 67 0 21 0 4 0 42 0 60 All other 74,487 62,569 11,918 59,080 2,312 10,203 2,323 280 290 61 Foreign governments and official institutions .... 5,331 4,819 512 4,514 371 375 13 20 38 62 Commercial banks in United States 27,962 22,223 5,740 20,840 942 5,060 888 115 118 63 U.S. branches and agencies of other foreign banks 18,919 14,718 4,201 13,758 361 4,167 540 41 52 64 Other commercial banks in United States 9,043 7,505 1,539 7,082 581 892 348 74 66 65 Banks in foreign countries 40,424 34,819 5,605 33,044 975 4,743 1,410 135 118 66 Foreign branches of U.S. banks 6,396 5,035 1,362 4,696 283 1,084 310 19 5 67 Other banks in foreign countries 34,027 29,784 4,243 28,348 691 3,659 1,100 116 114 68 Certified and officers' checks, travelers checks, and letters of credit sold for cash 770 709 62 683 24 25 12 10 16 69 Demand deposits 3,691 3,501 190 3,203 24 80 148 118 118 70 Individuals, partnerships, and corporations 1,787 1,689 97 1,447 0 50 131 84 75 71 U.S. addressees (domicile) 1,032 1,032 0 806 0 21 127 78 0 72 Non-U.S. addressees (domicile) 755 657 97 640 0 28 4 7 75 73 U.S. government, states, and political subdivisions in United States 9 9 0 8 0 0 0 1 0 74 All other 1,896 1,803 93 1,748 24 30 17 33 43 75 Foreign governments and official institutions .... 280 277 3 254 0 2 3 20 2 76 Commercial banks in United States 180 179 2 176 0 1 0 2 1 77 U.S. branches and agencies of other foreign banks 17 17 0 17 0 0 0 0 0 78 Other commercial banks in United States 163 162 1 159 0 1 0 2 1 79 Banks in foreign countries 665 638 26 635 0 2 2 1 24 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 770 709 62 683 24 25 12 10 16 81 Time deposits 107,639 93,590 14,049 84,614 2,258 11,475 3,030 4,545 1,717 82 Individuals, partnerships, and corporations 35,129 32,859 2,270 27,360 14 1,302 724 4,257 1,471 83 U.S. addressees (domicile) 21,656 21,656 0 16,635 0 256 588 4,178 0 84 Non-U.S. addressees (domicile) 13,472 11,203 2,270 10,724 14 1,047 137 80 1,471 85 U.S. government, states, and political subdivisions in United States 58 58 0 13 0 3 0 42 0 86 All other 72,452 60,673 11,780 57,240 2,244 10,170 2,306 246 246 87 Foreign governments and official institutions .... 5,022 4,531 492 4,249 354 372 10 0 36 88 Commercial banks in United States 27,768 22,037 5,731 20,657 936 5,057 888 113 116 89 U.S. branches and agencies of other foreign banks 18,896 14,700 4,196 13,741 356 4,167 540 41 52 90 Other commercial banks in United States 8,872 7,337 1,536 6,917 581 890 348 72 65 91 Banks in foreign countries 39,661 34,105 5,557 32,334 954 4,740 1,408 133 93 92 Savings deposits 660 598 62 398 0 74 77 78 33 93 Individuals, partnerships, and corporations 658 596 62 397 0 74 77 77 33 94 U.S. addressees (domicile) 413 413 0 236 0 31 73 73 0 95 Non-U.S. addressees (domicile) 246 184 62 162 0 42 4 4 33 % 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 1 0 0 0 0 0 98 Credit balances 390 211 180 208 128 23 0 2 29 99 Individuals, partnerships, and corporations 253 119 134 117 85 20 0 2 28 KM) U.S. addressees (domicile) 135 71 64 69 19 17 0 2 28 101 Non-U.S. addressees (domicile) 118 48 70 48 66 3 0 0 1 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 138 92 46 91 43 3 0 0 1 104 Foreign governments and official institutions .... 28 11 17 11 16 1 0 0 0 105 Commercial banks in United States 13 7 6 6 6 2 0 0 0 106 U.S. branches and agencies of other foreign banks 6 1 5 1 5 0 0 0 0 107 Other commercial banks in United States 8 6 1 5 1 2 0 0 0 108 Banks in foreign countries 96 74 22 74 21 0 0 0 1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • June 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 agreements to repurchase 16,866 12,250 4,616 11,029 682 4,043 714 306 92 By holder 110 Commercial banks in United States 13,929 9,646 4,283 8,552 476 3,936 603 306 56 111 Others 2,937 2,604 333 2,477 206 107 112 0 36 By type 112 One-day maturity or continuing contract 15,998 11,499 4,499 10,300 608 3,999 692 306 92 in Securities sold under agreements to repurchase .. 1,809 1,788 22 1,537 11 11 134 117 0 114 Other 14,188 9,711 4,477 8,763 598 3,989 558 190 92 115 Other securities sold under agreements to repurchase 869 752 117 729 73 44 23 0 0 116 Other liabilities for borrowed money 48,852 27,458 21,394 25,454 2,606 18,545 933 698 616 117 Owed to banks 45,254 24,255 21,000 22,314 2,549 18,166 933 677 616 118 U.S. addressees (domicile) 42,746 21,884 20,862 20,006 2,493 18,135 910 640 562 119 Non-U.S. addressees (domicile) 2,508 2,371 137 2,307 56 32 23 37 54 170 Owed to others 3,597 3,203 394 3,140 57 379 0 21 0 121 U.S. addressees (domicile) 3,200 2,894 306 2,858 9 312 0 20 0 122 Non-U.S. addressees (domicile) 398 309 88 282 48 67 0 1 0 173 All other liabilities 50,319 38,456 11,863 30,140 1,557 7,545 5,563 2,241 3,272 124 Acceptances executed and outstanding 15,002 11,524 3,478 11,044 155 3,212 298 180 113 175 Net due to related banking institutions6 31,646 23,891 7,755 16,322 1,289 3,834 5,127 1,976 3,098 126 Other 3,670 3,041 630 2,774 113 499 138 86 61 MEMO 127 Time deposits of $100,000 or more 81,491 70,124 11,366 61,868 264 11,201 2,445 4,448 1,264 128 Certificates of deposit (CDs) in denominations of $100,000 or more 31,586 29,931 1,654 24,043 11 1,299 983 4,339 910 179 Other 49,905 40,193 9,712 37,825 253 9,902 1,462 109 354 no Savings deposits authorized for automatic transfer and NOW accounts 75 49 27 2288 0 15 7 9 17 NI 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 6,889 6,835 54 5,966 1 82 117755 662266 4400 133 Acceptances refinanced with a U.S.-chartered bank .. 4,037 2,860 1,177 2,450 104 1,072 64 346 1 134 Statutory or regulatory asset pledge requirement 59,312 58,827 485 51,768 424 107 6,985 18 11 135 Statutory or regulatory asset maintenance requirement 9,499 9,021 478 5,561 67 528 370 2,565 408 136 Commercial letters of credit 7,288 4,771 2,517 4,255 295 2,049 196 290 204 137 Standby letters of credit, total 14,548 12,269 2,279 10,480 157 1,545 889 521 956 138 U.S. addressees (domicile) 12,066 10,042 2,024 8,611 65 1,366 707 414 902 139 Non-U.S. addressees (domicile) 2,482 2,227 255 1,869 91 179 182 107 53 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 2,976 2,786 190 22,,663399 0 115555 3366 11 113355 141 Holdings of commercial paper included in total gross loans 556 526 30 446622 0 19 6644 1 11 142 Holdings of acceptances included in total commercial and industrial loans 5,237 4,205 1,032 33,,995533 70 997744 6666 116655 8 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 33,833 17,390 16,443 15,940 2,146 14,392 763 431 160 144 Gross due from related banking institutions6 90,223 71,525 18,697 64,342 1,481 16,281 2,513 4,210 1,395 145 U.S. addressees (domicile) 23,107 14,796 8,311 10,881 81 7,849 182 3,566 547 146 Branches and agencies in the United States 22,576 14,525 8,051 10,617 79 7,591 176 3,566 547 147 In the same state as reporter 1,172 823 349 782 8 348 0 20 14 148 In other states 21,404 13,701 7,703 9,835 71 7,243 176 3,546 533 149 U.S. banking subsidiaries7 531 271 260 264 3 258 6 1 0 150 Non-U.S. addressees (domicile) 67,116 56,730 10,386 53,462 1,400 8,432 2,331 644 847 151 Head office and non-U.S. branches and agencies. 64,839 54,769 10,070 51,511 1,399 8,209 2,322 642 756 152 Non-U.S. banking companies and offices 2,277 1,961 316 1,951 1 223 8 2 92 153 Gross due to related banking institutions6 100,183 83,416 16,767 71,880 2,335 11,279 7,637 3,123 3,929 154 U.S. addressees (domicile) 23,236 16,802 6,434 10,482 375 3,380 3,444 2,533 3,022 155 Branches and agencies in the United States 22,900 16,541 6,359 10,359 372 3,333 3,327 2,520 2,988 156 In the same state as reporter 969 599 370 560 6 347 0 18 37 157 In other states 21,931 15,942 5,989 9,798 366 2,986 3,327 2,502 2,951 158 U.S. banking subsidiaries7 336 261 76 124 3 48 116 13 33 159 Non-U.S. addressees (domicile) 76,947 66,614 10,333 61,397 1,960 7,899 4,193 590 907 160 Head office and non-U.S. branches and agencies. 74,644 64,687 9,957 59,556 1,817 7,696 4,108 590 877 161 Non-U.S. banking companies and offices 2,304 1,928 376 1,842 144 203 85 0 30 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 Average for 30 calendar days (or calendar month) ending with report date 162 Total assets 399,121 346,491 52,629 326,160 7,023 42,279 9,870 7,902 5,887 163 Cash and due from depository institutions 39,158 35,431 3,727 33,093 610 3,238 1,564 312 341 164 Federal funds sold and securities purchased under agreements to resell 7,938 6,492 1,447 6,220 686 718 170 76 68 165 Total loans 127,139 95,262 31,877 82,062 4,725 24,298 7,315 4,160 4,579 166 Loans to banks in foreign countries 20,439 15,799 4,641 14,292 712 3,652 1,037 130 616 167 Total deposits and credit balances 107,046 92,195 14,851 83,003 2,416 12,015 2,918 4,829 1,865 168 Time CDs in denominations of $100,000 or more 30,239 28,592 1,646 22,679 11 1,263 880 4,494 912 169 Federal funds purchased and securities sold under agreements to repurchase 18,159 13,518 4,640 12,452 602 4,105 604 306 88 170 Other liabilities for borrowed money 46,573 25,742 20,831 23,959 2,424 18,200 813 611 565 171 Number of reports filed8 437 260 177 167 32 114 43 32 49 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. 11 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

A76 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 LARRY J. PROMISEL, Senior Associate Director CHARLES J. SIEGMAN, Senior Associate Director DALE W. HENDERSON, Associate Director DIVISION OF BANKING ROBERT F. GEMMIL, Staff Adviser SUPERVISION AND REGULATION SAMUEL PIZER, Staff Adviser PETER HOOPER, III, Assistant Director JOHN E. RYAN, Director DAVID H. HOWARD, Assistant Director WILLIAM TAYLOR, Deputy Director RAYMOND LUBITZ, Assistant Director FREDERICK R. DAHL, Associate Director RALPH W. SMITH, JR., Assistant 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

All 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., Advisor, Equal Employment STEPHEN R. MALPHRUS, Assistant Staff Director for Office Opportunity Programs Automation and Technology PORTIA W. THOMPSON, EEO Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director CHARLES L. HAMPTON, Director ELLIOTT C. MCENTEE, Associate Director BRUCE M. BEARDSLEY, Deputy Director DAVID L. ROBINSON, Associate Director GLENN L. CUMMINS, Assistant Director C. WILLIAM SCHLEICHER, JR., Associate Director NEAL H. HILLERMAN, Assistant Director WALTER ALTHAUSEN, Assistant Director RICHARD J. MANASSERI, Assistant Director CHARLES W. BENNETT, Assistant Director ELIZABETH B. RIGGS, Assistant Director ANNE M. DEBEER, Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director JACK DENNIS, JR., Assistant Director ROBERT J. ZEMEL, Assistant Director EARL G. HAMILTON, Assistant Director * JOHN F. SOBALA, Assistant Director DIVISION OF PERSONNEL DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER GEORGE E. LIVINGSTON, Controller BRENT L. BOWEN, Assistant Controller DIVISION OF SUPPORT SERVICES 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

78 Federal Reserve Bulletin • June 1984 Federal Open Market Committee FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman EDWARD G. BOEHNE LYLE E. GRAMLEY J. CHARLES PARTEE ROBERT H. BOYKIN KAREN N. HORN EMMETT J. RICE E. GERALD CORRIGAN PRESTON MARTIN NANCY H. TEETERS HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director and Secretary RICHARD G. DAVIS, Associate Economist NORMAND R.V. BERNARD, Assistant Secretary DONALD L. KOHN, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary RICHARD W. LANG, Associate Economist MICHAEL BRADFIELD, General Counsel DAVID E. LINDSEY, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist JAMES L. KICHLINE, Economist CHARLES J. SIEGMAN, Associate Economist EDWIN M. TRUMAN, Economist (International) GARY H. STERN, Associate Economist JOSEPH E. BURNS, Associate Economist JOSEPH S. ZEISEL, Associate Economist JOHN M. DAVIS, 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 GEORGE A. BUTLER, 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

A79 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

A80 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. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- 1972. 220 pp. Each volume, $3.00; 10 or more to one TIONS. 1974. 125 pp. address, $2.50 each. ANNUAL REPORT. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 $2.00 each in the United States, its possessions, Canada, pp. Cloth ed. $5.00 each; 10 or more to one address, and Mexico; 10 or more of same issue to one address, $4.50 each. Paper ed. $4.00 each; 10 or more to one $18.00 per year or $1.75 each. Elsewhere, $24.00 per address, $3.60 each. year or $2.50 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 of Part I only) 1976. 682 pp. $5.00. pp. $4.00 each; 10 or more to one address, $3.60 each. BANKING AND MONETARY STATISTICS. 1941-1970. 1976. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1,168 pp. $15.00. 1973. 271 pp. $3.50 each; 10 or more to one address, ANNUAL STATISTICAL DIGEST $3.00 each. 1971-75. 1976. 339 pp. $ 5.00 per copy. IMPROVING THE MONETARY AGGREGATES: REPORT OF THE 1972-76. 1977. 377 pp. $10.00 per copy. ADVISORY COMMITTEE ON MONETARY STATISTICS. 1973-77. 1978. 361 pp. $12.00 per copy. 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 1974-78. 1980. 305 pp. $10.00 per copy. each. 1970-79. 1981. 587 pp. $20.00 per copy. ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— 1980. 1981. 241 pp. $10.00 per copy. Regulation Z) Vol. I (Regular Transactions). 1969. 100 1981. 1982. 239 pp. $ 6.50 per copy. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each 1982. 1983. 266 pp. $ 7.50 per copy. volume $2.25; 10 or more of same volume to one FEDERAL RESERVE CHART BOOK. Issued four times a year in address, $2.00 each. February, May, August, and November. Subscription FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY includes one issue of Historical Chart Book. $7.00 per UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one year or $2.00 each in the United States, its possessions, address, $1.50 each. Canada, and Mexico. Elsewhere, $10.00 per year or THE BANK HOLDING COMPANY MOVEMENT TO 1978: A $3.00 each. COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- one address, $2.25 each. tion to the Federal Reserve Chart Book includes one IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. issue. $1.25 each in the United States, its possessions, 1978. 170 pp. $4.00 each; 10 or more to one address, Canada, and Mexico; 10 or more to one address, $1.00 $3.75 each. each. Elsewhere, $1.50 each. 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in each; 10 or more to one address, $1.50 each. the United States, its possessions, Canada, and Mexico; INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; 10 or more of same issue to one address, $13.50 per year 10 or more to one address, $1.25 each. or $.35 each. Elsewhere, $20.00 per year or $.50 each. PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. THE FEDERAL RESERVE ACT, as amended through April 20, $13.50 each. 1983. with an appendix containing provisions of certain NEW MONETARY CONTROL PROCEDURES: FEDERAL REother statutes affecting the Federal Reserve System. 576 SERVE STAFF STUDY. 1981. pp. $7.00. SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL ERAL RESERVE SYSTEM. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- Truth in Leasing ed at least monthly. (Requests must be prepaid.) U.S. Currency Consumer and Community Affairs Handbook. $60.00 per What Truth in Lending Means to You year. Monetary Policy and Reserve Requirements Handbook. $60.00 per year. Securities Credit Transactions Handbook. $60.00 per year. STAFF STUDIES. Summaries Only Printed in the Bulletin Federal Reserve Regulatory Service. 3 vols. (Contains all three Handbooks plus substantial additional material.) Studies and papers on economic and financial subjects that $175.00 per year. are of general interest. Requests to obtain single copies of Rates for subscribers outside the United States are as the full text or to be added to the mailing list for the series follows and include additional air mail costs: may be sent to Publications Services. Federal Reserve Regulatory Service, $225.00 per year. Each Handbook, $75.00 per year. WELCOME TO THE FEDERAL RESERVE. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- DENCE ON COMPETITION AND PERFORMANCE IN BANKING MARKETS, by Timothy J. Curry and John T. CATIONS. Rose. Jan. 1982. 9 pp. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL HUMAN RELATIONS AWARD DINNER, December 1982. 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION UCT MIX IN THE U.S. PAYMENTS MECHANISM, by David B. Humphrey. Apr. 1982. 18 pp. CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- CISCO, March 1983. 116. DIVISIA MONETARY AGGREGATES: COMPILATION, RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. DATA, AND HISTORICAL BEHAVIOR, by William A. VOLCKER, April 1983. Barnett and Paul A. Spindt. May 1982. 82 pp. CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLOCATION, by Glenn Canner. June 1982. 8 pp. COSTS, PRICES, AND RETAIL SALES, July 1983. 114 pp. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A 118. INTEREST RATES AND TERMS ON CONSTRUCTION MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. 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 I98O-OCTOBER 1981, by Margaret Organization and Advisory Committees L. Greene. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 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 New Federal Reserve Measures of Capacity and Capacity REVIEW OF THE TECHNIQUES AND LITERATURE, by Utilization. 7/83. Kenneth Rogoff. October 1983. 15 pp. Foreign Experience with Targets for Money Growth. 10/83. 133. RELATIONSHIPS AMONG EXCHANGE RATES, INTER- Intervention in Foreign Exchange Markets: A Summary of VENTION, AND INTEREST RATES: AN EMPIRICAL IN- Ten Staff Studies. 11/83. VESTIGATION, by Bonnie E. Loopesko. November A Financial Perspective on Agriculture. 1/84. 1983. 20 pp. U.S. International Transactions in 1983. 4/84. 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. 138. ANTITRUST LAWS, JUSTICE DEPARTMENT GUIDE- LINES, AND THE LIMITS OF CONCENTRATION IN LO- CAL BANKING MARKETS, by James Burke. June 1984. 14 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

A83 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM' App roximate Date or period Weekly Releases rele'e<a se days to which data refer Aggregate Reserves of Depository Institutions and Monetary Thursday Week ended previous Base. H.3 (502) [1.20] Wednesday Actions of the Board; Applications and Reports. H.2 (501) Friday Week ended previous Saturday Assets and Liabilities of Domestically Chartered and Foreign Wednesday Wednesday, 2 weeks earlier Related Banking Institutions. H.8 (510) [1.25] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Thursday Week ended previous Condition Statement of Federal Reserve Banks. H.4.1 (503) Wednesday [1.11] Foreign Exchange Rates. H.10 (512) [3.28] Monday Week ended previous Friday Money Stock, Liquid Assets, and Debit Measures. H.6 (508) Thursday Week ended Wednesday of [1.21] previous week Selected Borrowings in Immediately Available Funds of Large Wednesday Week ended Thursday of Member Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H. 15 (519) [ 1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Friday Wednesday, 1 week earlier Banks and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.28, 1.29, 1.30] Monthly Releases Capacity Utilization: Manufacturing, Mining, Utilities and Mid month Previous month Industrial Materials. G.3 (402) [2.11] Changes in Status of Banks and Branches. G.4.5 (404) 1st of month Previous month Consumer Installment Credit. G.19 (421) [1.55, 1.56] Mid-month 2nd month previous Debits and Deposit Turnover at Commercial Banks. G.6 (406) 12th of month Previous month [1.22] Finance Companies. G.20 (422) [1.51, 1.52] 5th working day of 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] 1st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The BULLETIN table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Approximate Date or period Monthly Releases—Continued release days to which data refer Industrial Production. G.12.3 (414) [2.13] Mid month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 5th of month 2nd month previous (423) Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G. 10 (411) [1.24] 20th of month Previous month Monthly Report of Assets and Liabilities of International Banking 2nd Monday of Wednesday, 2 weeks earlier Facilities. G.14 (416) month Research Library—Recent Acquisitions. G.15 (417) 1st of month Previous month Selected Interest Rates. G. 13 (415) [1.35] 3rd working day of Previous month month Summary of Equity Security Transactions. G.16 (418) 3rd week of month Release date Quarterly Releases Agricultural Finance Databook. E. 15 (125) End of March, January, April, July, and June, September, October and December Flow of Funds Summary Statistics Z.7 (788) [1.57, 1.58] 15th of February, Previous quarter May, August, and November Geographical Distribution of Assets and Liabilities of Major 15th of March, Previous quarter Foreign Branches of U.S. Banks. E.ll (121) June, September, and December Survey of Terms of Bank Lending. E.2 (111) [1.34] 15th of March, February, May, August and June, September, November and December Domestic Offices, Commercial Bank Assets and Liabilities March, June, Previous 6 months Consolidated Report of Condition. E.3.4 (113) [1.26, 1.28] September, and December Semiannual Releases Check Collection Services—Federal Reserve System. E.9 (119) February and July Previous 6 months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 proximate Date or period Semiannual Releases—Continued release days to which data refer Country Exposure Lending Survey. E. 16 (126) May and November End of previous December and June List of OTC Margin Stocks. E.7 (117) February, June and Release date October Annual Releases Aggregate Summaries of Annual Surveys of Security Credit February End of previous June Extension. C.2 (101) Bank Holding Companies and Subsidiary Banks (Domestic and March Previous year Foreign). C.6 (105) Bank Holding Companies and Subsidiary Banks (Domestic only). March Previous year C.5 (104) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Index to Statistical Tables References are to pages A3 through A75 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 9, 22, 24 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 23 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 21 Banks, by classes, 17-19, 66-71 Turnover, 14 Domestic finance companies, 35 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Foreign banks, U.S. branches and agencies, 20, 72-75 Reserves and related items, 3, 4, 5, 12 Nonfinancial corporations, 34 Deposits (See also specific types) Savings institutions, 26 Banks, by classes, 3, 17-20, 26, 67, 69, 71 Automobiles Federal Reserve Banks, 4, 10 Consumer installment credit, 38, 39 Turnover, 14 Production, 44, 45 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS acceptances, 9, 22, 24 Discounts and advances by Reserve Banks (See Loans) Bankers balances, 17-19, 66, 68, 70 (See also Foreigners) Dividends, corporate, 33 Bonds (See also U.S. government securities) New issues, 32 EMPLOYMENT, 42, 43 Rates 3 Eurodollars, 24 Branch banks, 14, 20, 52, 12-15 Business activity, nonfinancial, 42 Business expenditures on new plant and equipment, 34 FARM mortgage loans, 37 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 30 Federal credit agencies, 31 CAPACITY utilization, 42 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 17, 67, 69, 71 ownership of gross debt, 29 Federal Reserve Banks, 10 Receipts and outlays, 27, 28 Central banks, discount rates, 63 Treasury financing of surplus, or deficit, 27 Certificates of deposit, 20, 24 Treasury operating balance, 27 Commercial and industrial loans Federal Financing Bank, 27, 31 Commercial banks, 15, 20, 23, 66, 68, 70 Federal funds, 3, 5, 16, 18, 19, 20, 24, 27 Weekly reporting banks, 18-20 Federal Home Loan Banks, 31 Commercial banks Federal Home Loan Mortgage Corporation, 31, 36, 37 Assets and liabilities, 17-19, 66-71 Federal Housing Administration, 31, 36, 37 Business loans, 23 Federal Land Banks, 37 Commercial and industrial loans, 15, 20, 23 Federal National Mortgage Association, 31, 36, 37 Consumer loans held, by type, and terms, 38, 39 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit fund, 16 Discount rates (See Interest rates) Number, by classes, 17, 67, 69, 71 U.S. government securities held, 4, 10, 11, 29 Real estate mortgages held, by holder and property, 37 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 3, 22, 24, 35 Federally sponsored credit agencies, 31 Condition statements (See Assets and liabilities) Finance companies Construction, 42, 46 Assets and liabilities, 35 Consumer installment credit, 38, 39 Business credit, 35 Consumer prices, 42, 47 Loans, 18, 38, 39 Consumption expenditures, 48, 49 Paper, 22, 24 Corporations Financial institutions Profits and their distribution, 33 Loans to, 18, 19, 20 Security issues, 32, 62 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 38 (See also Thrift institutions) Flow of funds, 40, 41 Currency and coin, 17, 66, 68, 70 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 20, 72-75 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 18, 19 DEBITS to deposit accounts, 14 Foreign exchange rates, 64 Debt (See specific types of debt or securities) Foreign trade, 51 Demand deposits Foreigners Adjusted, commercial banks, 14 Claims on, 52, 54, 57, 58, 59, 61 Banks, by classes, 17-20, 67, 69, 71 Liabilities to, 19, 51, 52-56, 60, 62, 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 GOLD REAL estate loans Certificate account, 10 Banks, by classes, 15, 18, 19, 37 Stock, 4, 51 Rates, terms, yields, and activity, 3, 36 Government National Mortgage Association, 31, 36, 37 Savings institutions, 26 Gross national product, 48, 49 Type of holder and property mortgaged, 37 Repurchase agreements, 5, 16, 18, 19, 20 HOUSING, new and existing units, 46 Reserve requirements, 7 Reserves INCOME, personal and national, 42, 48, 49 Commercial banks, 17, 67 Industrial production, 42, 44 Depository institutions, 3, 4, 5, 12 Installment loans, 38, 39 Federal Reserve Banks, 10 Insurance companies, 26, 29, 37 U.S. reserve assets, 51 Insured commercial banks, 66-71 Residential mortgage loans, 36 Interbank loans and deposits, 17 Retail credit and retail sales, 38, 39, 42 Interest rates Bonds, 3 SAVING Business loans of banks, 23 Flow of funds, 40, 41 Federal Reserve Banks, 3, 6 National income accounts, 49 Foreign central banks and foreign countries, 63, 64 Savings and loan associations, 8, 26, 37, 38, 40 (See also Money and capital markets, 3, 24 Thrift institutions) Mortgages, 3, 36 Savings deposits (See Time and savings deposits) Prime rate, commercial banks, 22 Securities (See specific types) Time and savings deposits, 8 Federal and federally sponsored credit agencies, 31 International capital transactions of United States, 50-63 Foreign transactions, 62 International organizations, 54, 55-57, 60-63 New issues, 32 Inventories, 48 Prices, 25 Investment companies, issues and assets, 33 Special drawing rights, 4, 10, 50, 51 Investments (See also specific types) State and local governments Banks, by classes, 17, 19, 26 Deposits, 18, 19 Commercial banks, 3, 15, 17-19, 20, 37, 66, 68 Holdings of U.S. government securities, 29 Federal Reserve Banks, 10, 11 New security issues, 32 Savings institutions, 26, 37 Ownership of securities issued by, 18, 19, 26 Rates on securities, 3 LABOR force, 43 Stock market, 25 Life insurance companies (See Insurance companies) Stocks (See also Securities) Loans (See also specific types) New issues, 32 Banks, by classes, 17-19 Prices, 25 Commercial banks, 3, 15, 17-19, 20, 23, 66, 68, 70 Federal Reserve Banks, 4, 5, 6, 10, 11 Student Loan Marketing Association, 31 Insured or guaranteed by United States, 36, 37 Savings institutions, 26, 37 TAX receipts, federal, 28 MANUFACTURING Thrift institutions, 3 (See also Credit unions, Mutual Capacity utilization, 42 savings banks, and Savings and loan associations) Production, 42, 45 Time and savings deposits, 3, 8, 13, 16, 17-20, 67, 69, 71 Margin requirements, 25 Trade, foreign, 51 Member banks (See also Depository institutions) Treasury currency, Treasury cash, 4 Federal funds and repurchase agreements, 5 Treasury deposits, 4, 10, 27 Reserve requirements, 7 Treasury operating balance, 27 Mining production, 45 UNEMPLOYMENT, 43 Mobile homes shipped, 46 U.S. government balances Monetary and credit aggregates, 3, 12 Commercial bank holdings, 17, 18, 19 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 10, 27 Money stock measures and components, 3,13 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 16, 17-19, 20 , 29 , 66, 68 , 70 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 30 Mutual savings banks, 8, 18-19, 26, 29, 37, 38 (See also Federal Reserve Bank holdings, 4, 10, 11, 29 Thrift institutions) Foreign and international holdings and transactions, 10, 29, 63 NATIONAL defense outlays, 28 Open market transactions, 9 National income, 48 Outstanding, by type and holder, 26, 29 Rates, 3, 24 OPEN market transactions, 9 U.S. international transactions, 50-63 Utilities, production, 45 PERSONAL income, 49 Prices VETERANS Administration, 36, 37 Consumer and producer, 42, 47 Stock market, 25 WEEKLY reporting banks, 18-20 Prime rate, commercial banks, 22 Wholesale (producer) prices, 42, 47 Producer prices, 42, 47 Production, 42, 44 Profits, corporate, 33 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 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 Vacancy 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 Robert E. Boni 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. Boy kin 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

A89 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1984 * <3 Q> HAWAII a 0 © LEGEND ~~"" Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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