Federal Reserve Bulletin, 1984-07

VOLUME 70 • NUMBER 7 • JULY 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 547 THE FEDERAL RESERVE POSITION ON ities, before the Subcommittee on General RESTRUCTURING OF FINANCIAL Oversight of the House Committee on REGULATION RESPONSIBILITIES Banking, Finance and Urban Affairs, June 20, 1984. As the nation's central bank, the Federal Reserve must remain substantively in- 575 Federick R. Dahl, Associate Director, Divivolved in the regulation and supervision of sion of Banking Supervision and Regulathe financial and banking system because tion, discusses the role of the Federal Rethose functions impinge on the Federal Re- serve in implementing the Bank Export serve. Services Act, which authorizes bank holding companies to acquire equity interests in 558 INDUSTRIAL PRODUCTION export trading companies, before the Subcommittee on International Economic Poli- Output rose about 0.5 percent in June. cy and Trade of the House Committee on Foreign Affairs, June 20, 1984. 560 STATEMENTS TO CONGRESS Paul A. Volcker, Chairman, Board of Gov- 579 ANNOUNCEMENTS ernors, reviews proposals to restructure the Appointment of Martha R. Seger as a memlaws governing bank and thrift holding comber of the Board of Governors. pany activities, before the House Committee on Banking, Finance and Urban Affairs, Financial results of priced service opera- June 12, 1984. tions. 568 Chairman Volcker discusses the outlook for Coordination of priced service activities. world trade and U.S. exports in light of the Amendment to Regulation L. international debt situation and dollar interest rates and exchange rates, before the Proposed actions. Subcommittee on International Economic Meeting of Consumer Advisory Council. Policy of the Senate Committee on Foreign Relations, June 15, 1984. (Chairman Change in Board staff. Volcker presented similar testimony before Admission of six state banks to membership the Subcommittee on International Finance in the Federal Reserve System. and Montary Policy of the Senate Committee on Banking, Housing, and Urban Affairs 583 LEGAL DEVELOPMENTS on June 14, 1984.) Various bank holding company and bank 573 John E. Ryan, Director, Division of Bankmerger orders and pending cases. ing Supervision and Regulation, reviews the role of the Federal Reserve in monitoring 606 MEMBERSHIP OF THE compliance with the Bank Secrecy Act and BOARD OF GOVERNORS OF THE its reporting requirements, and in assisting FEDERAL RESERVE SYSTEM, 1913-84 the primary law enforcement authorities in discharging their enforcement responsibil- List of appointive and ex officio members. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AI FINANCIAL AND BUSINESS STATISTICS A70 FEDERAL RESERVE BOARD PUBLICATIONS A3 Domestic Financial Statistics A42 Domestic Nonfinancial Statistics A73 INDEX TO STATISTICAL TABLES A50 International Statistics A75 FEDERAL RESERVE BANKS, BRANCHES, A65 GUIDE TO TABULAR PRESENTATION, AND OFFICES STATISTICAL RELEASES, AND SPECIAL TABLES A76 MAP OF FEDERAL RESERVE SYSTEM A66 BOARD OF GOVERNORS AND STAFF A68 FEDERAL OPEN MARKET COMMITTEE AND STAFF, ADVISORY COUNCILS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Position on Restructuring of Financial Regulation Responsibilities In December 1982, the Task Group on Regula- as well as in most other industrialized countries, tion of Financial Services was created to review plainly encompass concerns about the stability of the current federal system for the regulation of the financial system in general, and the banking financial services and to propose desirable legis- system in particular. lative changes. The Chairman of the Task Group Crucial points of concern include the followwas Vice President George Bush, and Secretary ing: of the Treasury Donald T. Regan was Vice 1. The operation of the domestic and interna- Chairman. The Task Group also included the tional payments system—that is, the reliability heads of all seven federal financial regulatory and safety of arrangements by which hundreds of agencies and the Attorney General, the Director billions of funds are transferred among banks and of the Office of Management and Budget, the others day by day. Assistant to the President for Policy Develop- 2. The capital and liquidity of the banking ment, and the Chairman of the Council of Eco- system, so that it can (a) absorb shocks originatnomic Advisers. ing inside or outside the banking system, and (b) More than four dozen recommendations were respond effectively to monetary policy decisions. adopted by the Task Group in its final meetings, 3. The general risk profile of banks, and the held in December 1983 and January 1984. All of consistency of regulatory and supervisory apthe recommendations, along with draft legisla- proaches toward risk with objectives of monetion, are to be sent to President Reagan before tary policy. the Congress adjourns. 4. The structure of the banking system and the The issue of how federal agencies responsible powers of banking or other financial organizafor commercial bank supervision and regulation tions as they bear upon these concerns. should be reorganized was one of the more The clear implication is that the Federal Reimportant to be considered by the Task Group. serve as the nation's central bank must remain The following article is, with slight editorial substantively involved in the regulation and suchanges, the paper that Paul A. Volcker, the pervision of the financial and banking system Chairman of the Board of Governors of the because those functions impinge upon its general Federal Reserve System, distributed to the other responsibilities. members of the Task Group in December 1983. These responsibilities are broader than those implied by any particular operational mode for monetary policy; they go back to the founding of One fundamental premise of the Federal Re- the Federal Reserve System as an institution for serve's interpretation of, and response to, any forestalling and for dealing with financial crises. proposed restructuring of arrangements for the But it is also true that, taking monetary policy as regulation and supervision of banking and related the point of departure, that policy will be either markets and institutions is that such responsibil- complemented or compromised by regulation ities cannot be insulated from—or thought of as and supervision of the banking and financial something separate from—the basic responsibil- system. ities of a central bank. Central banking responsi- In sum, "central banking" concerns about bilities by law and custom, in the United States regulation and supervision need to be considered Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 Federal Reserve Bulletin • July 1984 together with other valid concerns of regulatory the concept is still relevant. At times of strain, policy—competition, simplicity, adaptability, the Federal Reserve is looked to as central to fairness, and federal-state relationships—in any efforts to contain the crisis and maintain confi- "reform" of the regulatory system. dence—to maintain stability and continuity in the This paper first develops these basic points financial system—even if the involvement of the about the relationships between central banking banking system is only derivative. Examples can and supervisory and regulatory responsibilities, be found in the Federal Reserve's participation including the possibility of conflicts among them. in efforts to deal with the threat to the commer- It then emphasizes that proposals for administra- cial paper market in the early 1970s from the tive reform of supervisory authority need to be bankruptcy of Penn Central, or with the presviewed in the light of proposed changes in sub- sures on securities firms (and potentially banks) stantive legislation governing powers of banks from the collapse of silver speculation in early and bank holding companies. 1980. These crises had the seeds, and more, of requiring a response in terms of monetary policy itself—that is, the need to provide more liquidity THE FEDERAL RESERVE AND BANKING to the economy. The point is that monetary REGULATION policy can potentially be thrown off course by A basic continuing responsibility of any central disturbances or fragilities arising in the internal bank—and the principal reason for the founding structure or performance of financial markets, of the Federal Reserve—is to assure stable and and those disturbances may, in some instances, smoothly functioning financial and payments require a monetary policy response. The public systems. These are prerequisites for, and com- interest requires not only a continuing effort to plementary to, the central bank's responsibility foresee and deal with such weaknesses before for conducting monetary policy as it is more they erupt into crisis, but also effective crisis narrowly conceived. Indeed, conceptions of the management based on full awareness of moneappropriate focus for "monetary policy" have tary implications. changed historically, variously focusing on con- Central banking responsibilities for financial trol of the money supply, defending a particular stability are supported by discount window facilexchange rate, or more passively providing a ities—historically, a key function of a central flow of money and credit responsive to the needs bank—through which the banking system, and in of business. What has not changed, and what is a crisis the economy more generally, can be not likely to change, is the idea that a central supported. But effective use of that critically bank must, to the extent possible, head off or important tool of crisis management is itself deal with financial disturbances and crises. dependent on intimate familiarity with the opera- To these ends, the Congress has over the last tions of banks, and to a degree other financial 70 years authorized the Federal Reserve (1) to be institutions, of the kind that can be derived only a major participant in the nation's payments from continuing the operational supervisory remechanism, (2) to lend at the discount window as sponsibilities. We need to be aware of the ways the ultimate source of liquidity for the economy, in which financial markets and institutions are and (3) to regulate and supervise key sectors of intertwined, recognizing that problems in one the financial markets, both domestic and interna- area typically affect others. In particular, a crisis tional. These functions largely predate, and are in one limited part of the banking system can in addition to, the more purely "monetary" quickly affect the strength and well-being of functions of engaging in open market and foreign other parts and the system as a whole, both exchange operations and setting reserve require- because of direct links through the payments ments; historically, in fact, the monetary func- system and because the system, in the end, rests tions were largely grafted onto the supervisory on intangibles of confidence. functions, not the reverse. In our view it would not be workable or In a real sense, the Federal Reserve was reasonable—indeed, it would be dangerous—to founded out of an instinct that monetary and look to the Federal Reserve to "pick up the banking disturbances were interrelated. Plainly, pieces" in a financial crisis without also provid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Restructuring of Financial Regulation Responsibilities 549 ing the Federal Reserve with the tools to do the Possibility of Conflicts job and with adequate "leverage" in shaping the system so as to reduce the likelihood of a crisis Some have argued that conflicts between regulaarising. However imperfect the foresight of any tion of banks and the conduct of monetary policy institution in the best of circumstances, these can arise, and that when, in specific instances, continuing concerns and responsibilities demand the conflict becomes acute, the Federal Reserve a strong place for the central bank among the will in effect tend to override the supervisory or institutions shaping financial regulations. regulatory concerns, presumably to the detri- These concerns have continuing operational ment either of the safety and soundness of bankimplications. Year in and year out, supervisory ing or of its competitive strength. Others may and regulatory decisions will influence the man- argue the reverse: that at times of financial crisis ner in which depository institutions respond to those concerns may lead to the provision of monetary policy decisions. On those occasions significant additional liquidity to the detriment of when the economic environment may require monetary targets. particularly forceful monetary policy action, the We do not dispute the obvious—that in particfailure of supervisors and regulators adequately ular instances, different responsibilities may lead to have foreseen potential strains on depository to legitimate differences in points of view. The institutions can either constrain the ability of the real question is how best to resolve such differcentral bank to act vigorously to meet monetary ences so that tradeoffs are carefully weighed and policy objectives or create a situation in which decisions made with a balanced view of the needed monetary restraint pushes the stability of public interest. the system to and beyond a breaking point. The The nature of the Federal Reserve's responsiadministration of the discount window from day bilities for the overall financial health of the to day and operations in the open market, do- economy forces it to weigh tradeoffs among mestically and internationally, presume a capaci- various goals. Specifically, conflicts between ty to evaluate the circumstances and soundness measures taken to achieve objectives of moneof the institutions with which the Federal Re- tary policy and measures taken to achieve those serve is dealing or to which it is providing credit. of supervision and regulation have to be recon- Some have argued that these needs of the ciled; more positively, those objectives need to central bank can be met by adequate exchanges be pursued in a mutually reinforcing manner. of information. We respectfully, but strongly, Indeed, both regulatory and monetary policy will disagree. Clearly, close working arrangements be improved if each can take advantage of inforamong all agencies with supervisory responsibil- mation obtained in the execution of the other. ities are helpful and important. But no one famil- On the other hand, the public interest will not iar with bureaucratic processes over the years, in necessarily be served by the single-minded purfair weather and foul, or with the realities of suit of different—and possibly competing—polichanging personalities and consequent possibili- cy objectives. To take an extreme case, the ties for friction, can count on access to examina- imposition of highly conservative supervision tion reports or other information prepared else- standards at a time of strain in pursuit of the where, or on opportunities to express views safety and soundness of individual institutions— formally or informally, to substitute adequately one legitimate and continuing objective of superfor a share of "hands on" operational and policy vision and regulation—could unwittingly place responsibility. Without such a share, the voice of the stability of the entire system at risk. Such an the central bank in regulatory and supervisory approach may not take account of tradeoffs that matters can and sometimes will be ignored; the have implications for the ability of the financial analysis it performs or that is performed for it in system as a whole to withstand and manage the these areas will be superficial; and the able and strains. Conversely, our supervisory arrangeforceful staff it needs will be dissipated. Almost ments should encourage continuing concern with inevitably, the tendency would be to retreat into the ability of the banking system to withstand a kind of ivory tower, adversely affecting both potential pressure even during long periods of monetary and supervisory policy. fair weather, when temptations may develop to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 Federal Reserve Bulletin • July 1984 cater to the instincts of the most aggressive tory structure would in practice provide signifibanking entrepreneurs. cant weight to the views of this nation's central There can be no absolute protection from bank. But this clearly is not the intent of certain these dangers. But experience here and abroad proposals, and it would obviously be totally suggests that a strong central bank, by the very unsatisfactory to have recognition of the central nature of its broad responsibilities and its relative bank's legitimate and necessary interests reasindependence, is in a unique strategic position to serted only after the system has lurched from take a balanced and long view. The design of any crisis to crisis. regulatory and supervisory system needs to take account of that broad perspective—a perspective essentially shared only with the treasury or fi- Foreign Experience nance ministry. Some history on the point is useful. A major Although specific arrangements differ, the conconcern of the Federal Reserve Board and others cerns expressed in this memorandum are widely during and after the Great Depression was that recognized in the practices of other industrialbank supervisors enforcing unduly conservative ized countries. Among the countries of the Orlending standards were undercutting the effects ganisation for Economic Co-operation and Deof expansionary fiscal and monetary objectives. velopment fully one-half (including the United At other times, the opposite concern may devel- Kingdom, Italy, and the Netherlands) place both op—that loose standards are compromising re- the monetary policy and the main supervisory strictive objectives. The fact is that such general functions directly in the central bank.1 In several regulatory policies as capital and liquidity stan- major countries, including France, Germany, dards, reserving policies, interest rate ceilings and Japan, supervisory responsibilities are (when they were in effect), and disclosure of shared in varying degrees between the central financial information have great significance for bank and either a banking commission or the monetary policy and the stability of the entire ministry of finance. In one country, Canada, the financial system. In specific instances, they can formal responsibility lies basically with the fieven be a dominating influence on actual policy nance ministry. The remaining countries have results. separate (and typically very small) banking com- A current example is the situation with respect missions; those commissions usually have formal to loans to underdeveloped countries, in which links with the central bank, and may rely on it for we face complex and interrelated questions operational surveillance as well as for policy about financial and economic stability, bank input. soundness and public confidence, and appropriate disclosure. The various regulators of depository institutions inevitably have different empha- THE LOCUS OF REGULATORY AUTHORITY ses in carrying out their responsibilities; and AND SUBSTANTIVE BANKING LEGISLATION there is considerable merit in bringing these disparate views to bear on supervisory and regu- In our view, much of the discussion about the latory problems. But in the end, resolution of the organization of financial supervision—including issue will have the broadest implications for various schemes to curtail or practically elimimonetary policy and our economy, and for the nate the Federal Reserve's regulatory or supervieconomies of other major countries. The Federal sory role—is out of focus. The present sense of Reserve cannot help but be deeply concerned disarray among regulatory agencies and their and involved in the decisionmaking. approaches grows in substantial part out of ques- It is possible—indeed, probable—that any re- tions of substance and policy inherent in applyform to eliminate or greatly reduce the Federal ing a framework of law developed many years Reserve's formal regulatory and supervisory involvement would eventually be overwhelmed by 1. The arrangements are discussed in detail in the appenthe need to achieve coordination, and the regula- dix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Restructuring of Financial Regulation Responsibilities 551 ago to markets and institutions transformed by to banking organizations. The Federal Reserve economic and technological change. These are shares that view, and we have endorsed and not, at bottom, questions of procedure or bu- supported the administration's proposed Finanreaucratic jurisdiction. They urgently need to be cial Institutions Deregulation Act (FIDA). That sorted out by the review of substantive law under bill provides for expanded powers for banking way in the Congress. organizations and firmly defines the banking For instance, one keyj:oncern is the question powers of nondepository institutions. It carefully of what nonbanking business banks and other defines a "bank" and thus the scope of institudepository institutions should be permitted to tions that are subject to the Bank Holding Comengage in and what types of organizations should pany Act. Moreover, as a natural complement, be permitted to own banks. Uncertainty is rife in the proposals would greatly simplify the regulathe industry, and conflicts in the regulatory ap- tory procedures for holding company initiation of proach to interpreting current law are obvious. the new activities that are provided for in the bill. The problem has become acute as banks and Passage of FID A would, in and of itself, settle bank holding companies have attempted to ex- many of the substantive issues, provide fresh, pand into new businesses such as securities and direct indications of congressional intent about insurance brokerage, while nonbank entities the way the law should be administered, and such as insurance companies, securities firms, greatly improve and simplify the regulatory proand retail firms have made inroads on the banks' cess. Concomitantly, it could be expected to traditional franchise in deposit taking and the clear the atmosphere and eliminate, or at least payments system. A glaring illustration of this alleviate, many of the pressures by banking trade process was the success of the money market associations to seek change through a different funds in competing with the banks' core business regulatory structure conceived as more sympaof collecting deposits. The problem has acceler- thetic to their substantive or procedural conated with various deregulatory steps, with the cerns. Indeed, in the absence of fundamental vast improvements in communications and data legislation dealing with both powers and proceprocessing technology, and, until recently, with dures, it is doubtful that any reshuffling of govrising inflation and interest rates. ernmental responsibilities for bank regulation Exploitation of loopholes in existing law—law would relieve the legitimate concerns of comthat for many years protected the core of the mercial banks about their competitive position banking business from outside competition—has and hence their discomfort with the regulatory recently favored "nonbank" competitors while regime. generally restraining banks from diversifying their business lines. The problem has been compounded by provisions of the Bank Holding APPROACHES TO CHANGE Company Act, in which the Congress placed on banking organizations a differential burden of The Federal Reserve neither needs nor seeks demonstrating net public benefits from proposed sole responsibility for regulation and supervision new activities and which gives procedural advan- of depository institutions, but it must have a tages to banks' competitors when banks seek to continuing, substantial involvement in this proundertake new activities through the holding cess. It must be able to bring to bear effectively company vehicle. These problems are rightly of its concerns about the direction of regulation as concern to banks. But the concerns arise funda- the financial system evolves, and it needs signifimentally from the law, not from the particular cant supervisory authority as well. Such authoradministrators of the law—although, as a com- ity will keep the Federal Reserve in touch with mon phenomenon of human nature, the "mes- developments at financial institutions and will senger" can be blamed for the message. give weight to its views in the formation of Some parts of the banking community have supervisory policy, which is at the foundation of argued that the Bank Holding Company Act is a sound financial system. too restrictive in terms of the powers permitted Consequently, proposals that would simply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 Federal Reserve Bulletin • July 1984 remove the most important element for Federal There is a significant role for the deposit Reserve regulatory and supervisory influence— insurance agency that offers some balance to its its responsibility for bank holding companies— inherently conservative mandate to protect the cannot meet the minimum requirements unless insurance fund. The existing system also fits "leverage" is restored in other ways. One vote reasonably comfortably within the context of the on a five-member council and the right to accom- dual banking system; a more centralized system, pany the examiners of other agencies as a kind of impelled to treat banks with a high degree of junior partner as they supervise a limited number uniformity, might tend inherently to erode the of the nation's largest banks—without regulatory meaningful role for states in regulation and suauthority or the power to require corrective pervision. measures—do not constitute an adequate substi- These are matters that must be dealt with in tute. And, to the extent concurrent regulatory or any reform, and it remains to be seen whether supervisory authority is provided for a small they can be dealt with as effectively in another group of institutions, problems of a clash in framework. policy and confusion for the supervised banks As noted earlier, enactment of FIDA would, in would be magnified. itself, deal with some of the most important We also recognize that the current regulatory concerns of the regulated banks and substantially system poses a number of problems of overlap- simplify bank holding company regulation. Other ping or divided authority and that these problems steps could be taken to improve the present have been aggravated by differences toward sub- supervisory and regulatory structure indepenstantive questions. In our view, the fresh con- dent of FIDA. gressional direction on these questions implied Those steps include consolidating the responby the adoption of FIDA would eliminate much sibility for antitrust analysis of cases involving of the difficulty and present the remaining prob- domestic banking organizations in the Justice lems in a different, and more manageable, con- Department. Another step would be to consolitext. date in the Securities and Exchange Commission the responsibility for administration of the securities laws as they affect deposit-taking compa- Modifying the Present Framework nies. Authority for margin requirements could be realigned. (It may be noted that, when these In approaching change, the strengths of the pre- steps have been considered in the past, the sent regulatory system should not be over- banking industry itself usually has urged that the looked. Broadly, it has provided some balance basic authorities be retained by the bank regulaamong various interests and concerns within the tory agencies.) government in the process of supervision and Regulatory responsibility for much of the conregulation. For example, through the Office of sumer credit protection legislation (and for relathe Comptroller of the Currency there is a link to tions with the Consumer Advisory Council, the broad policy concerns of the Secretary of the which, in any event, should be preserved) might Treasury. At the same time, the supervisory and also be shifted from the Federal Reserve to an regulatory function as a whole, and particularly agency with responsibility for other consumerthe portions concerned with "casework," are related legislation. The current arrangement apinsulated from political pressures; and adminis- pears to be working satisfactorily, however, and trative arrangements encourage a degree of con- this, in itself, is probably not a priority matter. tinuity that would be lost if they were tied Improvements aimed at simplicity and consisdirectly to the executive branch. tency can be made in other areas, potentially The current system also incorporates an im- more closely related to the essence of the Federportant role and influence for the Federal Re- al Reserve's concerns for regulation and superviserve in domestic and international banking sion. These steps could be taken whether or not regulation without concentrating power and FIDA is passed, but would make a greater contricasework in that agency. bution if FIDA were the operative law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Restructuring of Financial Regulation Responsibilities 553 One possibility would be to shift to the primary ing companies in a single agency. From the banking regulator responsibility for one-bank standpoint of the Federal Reserve, this arrangeholding companies that in fact conduct no signifi- ment offers a critical vantage point for maintaincant nonbank activities; while a heavy case load ing oversight and surveillance over the evolution exists in this area, the holding companies are and risk characteristics of the system as a whole. essentially nothing more than financing vehicles Under current practice, the Federal Reserve for the bank. routinely solicits the recommendations of the Another possibility would be to shift to the Office of the Comptroller of the Currency, the Federal Reserve responsibility for regulation of Federal Deposit Insurance Corporation, and the banks that are part of holding companies with state supervisory authorities on applications that significant nonbanking activities. Under such an come before it under the Bank Holding Company arrangement, both the bank and the bank holding Act. With rare exceptions, the final determinacompany would be regulated by the same agen- tion by the Federal Reserve is consistent with cy, further reducing the overlapping jurisdiction those recommendations. Nonetheless, the supernow in place. visory system could be better integrated if the Regulation of nonbanking activities of bank law were amended to provide the presumption holding companies and multibank holding com- that the Federal Reserve accepts the findings of panies raises questions of uniform treatment for the primary banking supervisor with respect to activities that extend over state and national the financial and managerial factors bearing on boundaries, and the logic points strongly toward the lead bank of the holding company. maintaining regulation and supervision of hold- APPENDIX-. CENTRAL BANK RESPONSIBILITY FOR BANK SUPERVISION IN SELECTED COUNTRIES Central banks in many industrial countries, as of a central bank, including responsibility for well as those in most developing countries, have prudential supervision of financial institutions. major responsibility for bank supervision and In Germany and in Japan, responsibility for regulation. In the United Kingdom, Italy, and the bank supervision is shared by the central bank Netherlands, the central bank has sole responsi- with a banking commmission and with the Minisbility for bank supervision.2 try of Finance respectively. In Germany, the In a number of other countries of the Organisa- Bundesbank is consulted on all major supervisotion for Economic Co-operation and Develop- ry decisions, concurs in the establishment of ment responsibility for supervision, both in form liquidity ratios and guidelines, conducts on-site and in practice, is divided between the central examinations (through the state central banks), bank and a bank supervisory office or commis- and collects reports on large credits. In Japan, sion. Legislation recently enacted in France the Ministry of Finance has statutory responsiplaced the banking commission more directly bility and authority for licensing, but operational under the Bank of France. On-site inspections of supervision is closely coordinated with the Bank banks in France are conducted by inspectors of of Japan, which has its own inspectors who the Bank of France. Luxembourg has recently examine loan quality and management. created a new institution with most of the powers In Belgium and Switzerland, the central bank is somewhat less involved in bank supervision. In Belgium, the Deputy Governor of the Central 2. The material for this appendix was derived from Richard Dale, Bank Supervision Around the World (New York: Bank has a seat on the banking commission, and Group of Thirty, 1982); and Board of Governors of the the commission consults with the central bank Federal Reserve System, Report to Congress on Bank Superbefore establishing solvency and liquidity ratios; vision in the Group of Ten Nations and Switzerland (The Board, 1984). the commission relies on external auditors to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 Federal Reserve Bulletin • July 1984 ensure compliance with banking laws. In Swit- Responsibility for bank supervision zerland, the central bank has taken a role in in OECD countries supervision only recently, and at times it has had Little direct a seat on the banking commission. Primary central Joint central bank bank responsibility responsibility In Austria, Canada, and the Scandinavian responsibility countries, the central bank has a limited role in G-10 countries bank supervision. France Belgium Canada In all OECD countries, the central bank and Italy Germany Sweden Luxembourg Japan the banking supervisory institution consult on Netherlands Switzerland problem cases, particularly in view of the role of United Kingdom United States the central bank as lender to the banking system. Other OECD countries Moreover, central banks have responsibility for Australia Austria monitoring developments in foreign exchange Greece Denmark Iceland Finland and domestic financial markets, for identifying New Zealand Norway trading and other market practices that may Portugal Spain signal prudential problems, and for overseeing Turkey the smooth functioning of the payments system. The accompanying table summarizes the responsibilities of the central banks for bank super- agement to control the business objectives of the vision in the OECD countries. banks. United Kingdom Italy The Banking Act of 1979 is the statutory basis for The Bank of Italy is responsible for supervision banking supervision and regulation in the United and regulation of the domestic banking system, Kingdom. It defines two categories of institu- subject to directives from the Interministerial tions: recognized banks and licensed deposit- Committee for Credit and Savings. The Banking takers. The Bank of England supervises recog- Law of 1936 granted the Bank of Italy broad nized banks through its direct and continuing powers to license banks, to establish supervisory contacts with management, while the licensed requirements, and to conduct on-site examinadeposit-taking institutions are regulated through tions. The Bank of Italy has an inspection departmore formal procedures.3 As of February 1984 ment that regularly conducts such examinations. there were 290 recognized banks and 308 licensed deposit-taking institutions in the United Kingdom. The Netherlands The Bank of England does not conduct regular on-site examinations of banks. The supervisory The Netherlands Bank has broad responsibility process is initiated through its analysis of statisti- for supervision of the credit system, including cal reports filed by the banks. These reports are licensing authority, monitoring responsibilities, utilized in quarterly or semiannual discussions and the ability to impose sanctions on credit with banks' senior management. These discus- institutions. Its supervisory responsibilities covsions are intended to analyze the ability of man- er the universal banks, cooperative banks, savings banks, and mortgage institutions. The super- 3. The statutory requirements for recognition as a bank by visory system is highly formal, with detailed the Bank of England are more stringent than those for regulations on solvency and liquidity. The cenobtaining a deposit-taking license. The main criteria are (1) adequacy of financial resources (including a minimum capital tral bank also attaches considerable importance requirement); (2) high reputation and standing in the financial to its informal contacts with banks. On-site incommunity; (3) provision of a specified range of financial spections by the central bank form an important services; and (4) a management of integrity and prudence commanding appropriate professional skills. part of the supervisory process. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Restructuring of Financial Regulation Responsibilities 555 France exercises its functions in close cooperation with the Bundesbank, which maintains its own bank The Banking Law of January 24, 1984, brought supervision department. Financial reports are all credit institutions in France under a single collected by the Bundesbank, but the FBSO has supervisory structure, with considerable author- the responsibility for taking appropriate steps in ity and responsibility for supervisory policy and the light of such reports. Similarly, the FBSO has for on-site inspection vested in the Bank of responsibility for issuing detailed regulations on France. That new law created three separate liquidity and capital adequacy; however, the bodies with bank supervisory responsibility: Bundesbank is consulted in the determination of 1. The Bank Commission, chaired by the Gov- applicable ratios that may have implications for ernor of the Bank of France, is responsible for monetary policy. The FBSO is empowered to ensuring the safety and soundness of the credit conduct on-site inspections of banks, but does institutions and monitoring compliance with not generally do so. These inspections are conbanking laws and regulations. On-site banking ducted by external auditors or by the 11 state examinations are conducted by inspectors of the central banks (Landeszentralbanken), which are Bank of France. analogous to Federal Reserve District Banks. 2. The Committee on Bank Regulation, Presidents of the Landeszentralbanken sit on the chaired by the Minister of Finance with the Central Bank Council, which determines mone- Governor of the Bank of France as Vice Chair- tary and credit policy. man, establishes prudential regulations and ac- Present supervisory arrangements reflect recounting standards, and determines what activi- forms introduced in 1976 after the failure of the ties are permissible for commercial banks. Herstatt bank, including rules on risk spreading 3. The Committee on Credit Institutions, co- and foreign exchange exposure, the establishchaired by the Governor of the Bank of France ment of a "lifeboat fund" for banks experiencing and the Director of the Treasury, is responsible liquidity difficulties, and an extended deposit for approving licenses to establish new banks protection scheme. These arrangements have and for making technical decisions regarding been supplemented by a series of "gentleman's application of regulations to individual banks. agreements" aimed at extending the supervisory function to the foreign operations of German banks. Luxembourg Following the Herstatt episode, the Bundesbank, in conjunction with the domestic banking The Institut Monetaire Luxembourgeois (IML) industry, established the Liquidity Consortium was established in June 1983. The IML performs Bank (Liko-Bank) to assist banks that run into many of the functions of a central bank, includ- temporary liquidity difficulties but are otherwise ing issuing coins and notes, holding and manag- sound. ing official reserves, regulating of domestic cred- In early 1984 the German cabinet approved it, serving as a depository for government funds, draft changes to the Banking Act that would and supervising financial institutions. The legis- limit outstanding credits of the consolidated bank lation establishing the IML transferred to that (including majority-owned subsidiaries) to 18 institution the exercise of all supervisory and times capital, would reduce the limit on single regulatory powers of the previous Banking Con- credits from 75 percent to 50 percent of a bank's trol Commission. capital, and would improve the statistical coverage of foreign subsidiaries. Germany Japan The Federal Banking Supervisory Office (FBSO) is responsible for the supervision of banks and The Ministry of Finance (MOF) has broad reother credit institutions in Germany, although it sponsibility for licensing, regulating, and super- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 Federal Reserve Bulletin • July 1984 vising banks and other financial institutions in the commission are appointed by the Swiss gov- Japan, although the Bank of Japan (BOJ) also has ernment and must be experts in banking. At a role in bank supervision, which it fulfills in times since 1975 a vice president of the Swiss close consulation with the MOF. Since 1981 the National Bank (SNB) has been a member of the emphasis in bank supervision has shifted from commission, facilitating cooperation between the the traditional approach of administrative guid- two institutions, but there is no legal requirement ance toward a more formal regulatory structure, that a member of the commission be from the although the MOF retains considerable discre- SNB. In practice, the cooperation and coordinationary authority. tion between the commission and the SNB is The BOJ also conducts on-site inspections of quite close. The SNB receives copies of licenses banks because of its substantial extensions of issued by the commission (but not audits), and credit to banks, with the aim of ensuring a stable provides the commission with certain statistical financial environment as well as the smooth reports. The staff of the commission is quite implementation of monetary policy. In addition small. On-site inspections are typically perto the MOF, the BOJ has its own inspectors who formed by private auditing firms, which are focus primarily on an assessment of the banks' appointed and paid for by the banks but are loan quality and management. Copies of exami- licensed by the commission. The outside audination reports submitted to the MOF are provid- tor's report is in a format and has a content ed to the BOJ. designed by the commission, and it must give an accurate assessment of the financial condition of the bank and its compliance with banking law and licensing criteria. Belgium The Banking Commission, established in 1935, is responsible for supervising the Belgian banking Canada system. A member of the Management Committee of the National Bank, often the Deputy In Canada, the Inspector General of Banks is Governor, is usually a member of the Banking responsible to the Minister of Finance for the Commission. The Banking Commission's func- administration of the Bank Act, including supertions are confined largely to preventive supervi- vision of the country's banking system. The sion and to regulation. Deposit protection is Inspector General must report to the Minister of provided mostly through the Institut de Rees- Finance at least once a year on the financial compte et de Garantie. soundness of each bank. The National Bank has a limited statutory role The focus of the examination procedures is a in supervision. Regulations on balance sheet management audit, with emphasis on capital, ratios, reserve requirements, and other matters asset quality, management, earnings, and liquidof economic policy are the responsibility of the ity. There is heavy reliance on outside auditors, National Bank, although in practice it consults who must rotate every two years. regularly with the Banking Commission before Because the Bank of Canada is the lender of issuing monetary policy guidelines affecting last resort, it cooperates closely with the Inspecbanks. On-site inspections are generally con- tor General in the supervision of problem banks. ducted by auditors appointed by the Banking The Governor of the Bank and the Inspector Commission, which also uses its own inspectors General both sit on the Board of the Canadian in special situations. Deposit Insurance Corporation. The Bank of Canada collects, processes, and analyzes financial returns submitted by banks, and is in daily Switzerland contact with banks through trading of foreign exchange and government securities. The Federal Banking Commission is the chief The Governor of the Bank of Canada also supervisor for institutions that accept deposits serves as Chairman of the Board of Directors of from the public in Switzerland. The members of the Canadian Payments Association, a group that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Restructuring of Financial Regulation Responsibilities 557 oversees clearing and settlement of Canadian laws and regulations, and conducting on-site payments. examinations. The Swedish Central Bank (Riksbank) regulates the credit markets, serves as a Sweden source of liquidity, and acts as the lender of last resort. The Riksbank has some role in supervis- Bank supervision in Sweden is conducted by the ing banks' foreign exchange positions, and the Bank Inspection Board (Bankinspektionen), reports by banks on foreign lending exposure are which reports to the Minister of Economics. Its provided to both the Bank Inspection Board and principal functions are ensuring safety and the Riksbank, which discuss them at regular joint soundness of banks, compliance with banking meetings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Industrial Production Released for publication July 13 was at 163.6 percent of the 1967 average; since December 1983 it has increased at an annual rate Industrial production increased an estimated 0.5 of 9.7 percent. From December 1982 to Decempercent in June following a rise of 0.4 percent in ber 1983 the pace of advance was 15.5 percent. May; the April gain has been revised down to 0.9 In market groupings, production of consumer percent from the previous estimate of 1.1 per- goods increased 0.4 percent in June. Auto assemcent. Production increases in June were largest blies increased about 2.5 percent to an annual in automotive products, equipment, and energy rate of 7.8 million units; output of nondurable materials. In June the index of industrial output consumer goods was up 0.4 percent, but produc- 1967 = 100 170 1978 1980 1982 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

559 1967 = 100 Percentage change from preceding month PPeerrcceennttaaggee cchhaannggee,, Grouping 1984 1984 JJuunnee 11998833 May June Feb. Mar. Apr. May June 1984 Major market groupings Total industrial production 162.8 163.6 .9 .5 .9 .4 .5 11.7 Products, total 163.3 164.1 .4 .4 .9 .5 .5 10.8 Final products 161.1 162.1 .3 .4 1.0 .6 .6 10.7 Consumer goods 162.1 162.7 -.1 .5 .8 .4 .4 6.8 Durable 162.2 163.2 -.6 .4 -.4 -.2 .6 9.4 Nondurable 162.0 162.6 .2 .6 1.3 .6 .4 5.9 Business equipment .. 175.4 177.0 .7 .1 .8 1.1 .9 17.8 Defense and space ... 133.6 134.7 .9 .5 2.1 .6 .8 14.2 Intermediate products .. 171.3 171.6 .7 .7 .5 .1 .2 11.1 Construction supplies. 159.7 159.2 .7 1.6 .5 -.1 -.3 12.0 Materials 162.0 162.9 1.8 .6 .9 .1 .6 13.4 Major industry groupings Manufacturing 164.2 164.8 1.2 .4 .9 .4 .4 11.8 Durable 153.3 154.1 1.3 .6 .9 .3 .5 15.7 Nondurable. 179.9 180.2 1.1 .2 .9 .4 .2 7.4 Mining 124.6 126.0 -.6 -.2 -.6 1.2 1.1 11.9 Utilities 182.5 185.1 -2.5 2.0 1.6 -.2 1.4 9.0 NOTE. Indexes are seasonally adjusted. tion of home goods changed little. Production of nondurable materials increased 0.3 percent and business equipment posted another sizable gain, that of energy materials, 1.4 percent. with the largest increases occurring in building In industry groupings, manufacturing output and mining, and transit equipment. Output of rose 0.4 percent; production of durables adconstruction supplies declined 0.3 percent fol- vanced 0.5 percent, and output of nondurables lowing a slight decrease in May. edged up 0.2 percent. Mining output was up Output of materials increased 0.6 percent in sharply as a result of increases in coal production June. Output of parts for consumer durables and and oil and gas well drilling activity. Production for equipment rose sharply. However, a sizable by utilities also increased sharply because of the decline in steel production held the total gain for unusually hot June and resulting strong demand durable materials to 0.4 percent. Production of for electricity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Statements to Congress Statement by Paul A. Volcker, Chairman, Board Federal Reserve approach these questions can of Governors of the Federal Reserve System, be simply summarized as follows: (1) we want to before the Committee on Banking, Finance and encourage fair competition in the provision of Urban Affairs, U.S. House of Representatives, banking and financial services; (2) we want to June 12, 1984. promote efficiency and minimal cost to benefit consumers; (3) we want to protect against con I appreciate the opportunity to review with you centration of economic resources, discriminaproposals to restructure the laws governing bank tion, conflicts of interest, and other potential and thrift holding company activities. I am hope- abuses; and (4) we want a strong and stable ful that these hearings will represent the conclu- banking system, implying continuing attention to sion of an extensive review by the Congress of safety and soundness of banks and other deposilegislative proposals affecting the competitive tory institutions. environment in the markets for banking and These goals in some circumstances will, to be other financial services so that much needed sure, be in conflict or point to different approachlegislation can be enacted this year. es. Consequently, they must be appropriately I have on several occasions expressed my balanced. In approaching that balance, the norconviction, before congressional committees and mal perception for most industries—that we can elsewhere, that we must move with a sense of simply look to the marketplace to promote comurgency to reform the existing legislative frame- petition and efficiency—must be considered in work governing "banking" organizations. The the light of the crucial importance of maintaining time remaining for congressional action in this confidence in banking institutions, continuity in session has grown shorter, but the pressures of the provision of money and payment systems, events remain. The banking and financial system and the ability of the central bank to conduct will evolve in new directions. The only question effective monetary policy. is whether that evolution will proceed within a Public policy has long recognized the imporframework established by the Congress, with full tance of protecting the safety and soundness of consideration and a balancing of the public inter- banks and depository institutions generally: they ests involved, or whether it will proceed entirely perform a unique and critical role in the financial under the impetus of market forces pushing system as operators of the payments system, as around, and over, a legislative structure set in custodians of the bulk of liquid savings, as unbiquite different circumstances years ago. ased suppliers of short-term credit, and as the The latter possibility cannot be satisfactory, critical link between monetary policy and the opening the clear danger that the overriding economy. In our judgment, those concerns republic interest in a strong, stable, and competi- main central today in any consideration of banktive financial system will be lost. New technolo- ing legislation. Recent developments only emgies, intense market pressures, the growing ag- phasize the point. gressiveness of states in competing with each One aspect of those concerns is reflected in the other for jobs in banking, and potentially con- federal "safety net" long provided by the disflicting decisions of regulators and courts at- count window and deposit insurance, and that tempting to apply old laws to today's circum- "safety net" also implies an effective supervisostances all demand a considered and adequate ry and regulatory framework for depository instiresponse. Your committee has the opportunity to tutions to contain excessive risk. Moreover, that take a leading role in that effort. framework must, to a degree, extend to holding The basic framework within which we at the companies of which the depository institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

561 are a part because banking institutions cannot be management accounts, and more recently browholly separated from the fortunes of their affili- kerage of insured deposits. The phenomenon ates and from the success or failure of their known as "nonbank banks," growing out of business objectives. loopholes in current law, provides a vehicle by At the same time, banking and thrift organiza- which financial and nonfinancial firms can enter tions must be able to compete, and compete the banking business outside the framework of effectively and profitably in the marketplace, if law and regulation surrounding bank holding they are to be strong and stable institutions, companies, actually or potentially violating the capable of serving the public and the public policy proscriptions against the combining of policy effectively. That need itself requires adap- banking and commerce, and in the case of banks tation of the legislative framework. It is estab- themselves, the established policies limiting inlishing that balance among the needs for sound- terstate banking. Among depository institutions ness, continuity, and competitive strength that the distinctions are also blurring, with many represent the legislative challenge before you. thrifts increasingly assuming the characteristics of t^nks. Moreover, "bank-like" thrifts are also able; particularly under much more liberal laws THE CURRENT SITUATION in some states, to undertake activities prohibited for banks. The accelerated pace of change in the structure Now, we can also see a strong movement of our financial system grows out of several among states to enact banking laws more permisdevelopments that are well known by now. New sive than federal law—in an effort to attract communications and data processing technology institutions, to enhance state revenues, and to has led to computerization of many financial create new state employment opportunities— services and to a blurring in the capacities of with the obvious potential for undermining federbanks, thrifts, and other potential suppliers of al law and policy. And, as those efforts become financial services. There are greater opportuni- generalized, they will be self-defeating even in ties for providing efficient services and more their immediate purpose. Meanwhile, the deciservices by banks and nonbanks alike. At the sions of federal regulators in the framework of same time, business and consumer experience existing law may be, or appear to be, inconsiswith inflation and related higher interest rates of tent, whether they are meant to facilitate change the late 1970s and 1980s has increased sensitivity or to maintain congressional intent. Such decito yield differentials and has put a premium on sions are increasingly subject to court challenges the ability to move money quickly both national- to stop or speed the process, as they have an ly and internationally. impact on particular private interest concerns, Removal of interest rate ceilings on liabilities and the courts themselves are hard pressed to of depository institutions and aggressive compe- apply old laws to new circumstances. tition with new forms of liquid deposits and As regulators and legislators concerned with deposit substitutes have spurred efforts to attain the public interest, we must be sensitive to new sources of income through fees, through abiding and valid concerns of the public interest expanded asset powers, and by operating inter- without blocking responses to real needs in the state. At the same time, nonbanks, offering marketplace. As things now stand, there is no broadly similar types of financial instruments, assurance that the process of change will adehave sought ways to enter the banking business quately address public policy concerns. Quite to gain access to federal deposit insurance and to the opposite—it is clear that some of the timethe payments mechanism without having all the tested tenets of banking law and policy are being burdens carried by the regulated banking sector. undermined as market pressures and competitive There have been numerous reactions to the instincts play against an outmoded legal and forces driving change. We see new combinations regulatory framework. The longer difficult deciof financial firms and new services. Increasingly, sions about the direction in which change should it seems, those services are similar to those be encouraged or discouraged by public policy offered by banks—money market funds, cash are postponed, the more difficult these decisions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin • July 1984 will ultimately become. And, more importantly ed changes that the committee may wish to in my view, delay only increases the risks that consider. policy concerns—including the safety and soundness of the banking system—will be undermined. DEFINITION OF A BANK A BALANCED APPROACH TO BANKING The definition of a bank proposed in H.R. 5734— LEGISLATION (1) an FDIC insured bank; (2) a bank eligible for FDIC insurance; or (3) a depository institution In previous testimony on these issues before the that accepts transaction accounts and makes Senate Banking Committee, I have suggested commercial loans—is the one originally recomthat new legislation should now address the mended by the Federal Reserve. The new definifollowing areas affecting banking institutions: (1) tion would close the nonbank bank loophole in a strengthened definition of a bank, (2) a defini- current law, and would not allow so-called "contion of a "qualified" thrift, (3) statutory guide- sumer banks" to be exempt from the Bank lines to govern the division of state and federal Holding Company Act. We believe it to be authority in the area of banking organization basically sound. powers, (4) new procedures to streamline appli- We have suggested a few limited changes to cation of the Bank Holding Company Act, and the basic definition in the bill in the Senate (5) expanded powers of depository institutions testimony that is attached.1 Those changes are holding companies. That testimony described in designed to avoid having an unnecessary impact considerable detail our position on each of these on a limited number of state-chartered nonbank areas and, rather than reviewing those positions institutions should the committee wish to do so, again, I have attached my Senate testimony to although we fully agree that nonbank depository this statement for the use of the committee. institutions such as industrial banks and private- The legislation introduced by Chairman St ly insured thrifts should be covered by the basic Germain and by Mr. Wylie—The Financial Insti- policies of the bank and savings and loan holding tutions Equity Act of 1984—deals in a broadly company acts. appropriate way with the first three areas I have An important provision of the bill would promentioned. So far as they go, the provisions vide for divestiture of institutions that are declosely parallel the views of the Federal Reserve fined as banks if the parent owner is engaged in Board. Specifically, they would more adequately businesses that are inconsistent with the restricdefine what a bank is, define the essential nature tions and limitations of the Bank Holding Comof a thrift eligible for the privilege of treatment as pany Act, without providing any grandfathering. a "unitary" savings and loan holding company, While we have been willing to support provisions and limit the ability of states to regulate banking that would permit a limited amount of grandfathin ways inconsistent with federal policy. Provi- ering for institutions proceeding in good faith sions along these lines are important in any before legislative proposals were introduced, we legislation. What is necessary, however, is redef- agree that such exceptions should be made with initions of the powers of bank holding companies great caution. in a manner more in line with present needs, I would like to remind the committee of a while consistent with safety and soundness as a related point concerning equity among financial whole. Therefore, I urge the committee, in its institutions: we regulate banks to preserve the consideration of the legislation, to add the two integrity of the nation's payments mechanism vital elements now omitted: namely the stream- and to meet the needs of monetary policy. It has lining of provisions under the Bank Holding been the longstanding view of the Board that Company Act and the expanded powers of de- authority should be provided to it to define pository institution holding companies. In reviewing H.R. 5734, my comments will be 1. The attachments to this statement are available on fairly general. Therefore, I have appended sperequest from Publications Services, Board of Governors of cific legislative language encompassing suggest- the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 563 transaction accounts and to apply reserve re- bly be undercut, and rapidly, to the extent thrift quirements to institutions that are not formally institutions with banking powers can simply subdepository institutions (and thus are not covered stitute as a vehicle for combining various activiby the prudential rules applicable to these institu- ties. The need for action is reflected in the tions and their holding companies), but that do interest of a variety of nonfinancial and financial offer transaction accounts similar to those of- businesses in the acquisition of thrifts in order to fered by banks and thrifts. As long as these close benefit from their bank-like powers, to have substitutes for bank deposits are free from re- expanded opportunity for branching, to gain acserve requirements, potential competitive advan- cess to federal deposit insurance, and to be direct tages relative to bank deposits exist, particularly participants in the payments mechanism while when no interest is paid on required reserves. At retaining their range of nonbanking, and even some time, the result of the competitive disparity nonfinancial, business. could be to complicate the task of conducting I recognize that there are difficult questions monetary policy. posed by firms that already have operations on Thus, the Board believes it would be prudent both sides of the line between commerce and to incorporate into the bill a provision whereby it "thrift banking." In the past, some industrial or would have authority to determine if instruments commercial firms have owned thrifts operating issued by nonbank institutions allowing third- as separate and distinct entities without signifiparty payment have, in fact, the essential charac- cant problems arising. But in the environment we teristic of transaction accounts and should thus now face, these questions need to be approached be subject to reserve requirements. The Board anew, and a firm policy established with respect would not expect to use this authority unless to which combinations are acceptable and which conditions arose to demonstrate its necessity. are not. Also, we believe that institutions with such pow- H.R. 5734 approaches this issue by defining a ers should be subject to requirements pertaining "qualified" thrift institution to be a thrift that has to reporting of deposits. at least 65 percent of its assets in residential mortgages or related investments. This test must be met within two years, except for mutual and DEFINITION OF QUALIFIED THRIFT stock savings banks that are given a 10-year INSTITUTION period to comply. Further, "nonqualified" thrifts would be precluded from engaging in As in the case of nonbank banks, there has been commercial lending activities whether or not increasingly clear recognition of the need to they are part of a holding company. Similarly, adopt rules to assure equality of treatment of commercial lending activities would not be pervarious types of depository institutions exercis- mitted by those "qualified" thrifts that are ing similar or overlapping powers. Thrift institu- owned by a unitary savings and loan holding tions have become more like banks with respect company that engages in activities not permitted to the powers they are allowed to exercise, and for a multiple savings and loan holding company. that has become increasingly true with respect to We believe that this qualified thrift test is the powers they do exercise. Moreover, the appropriate for a savings and loan holding compowers available to thrift institutions in other pany to be eligible for treatment as a unitary respects extend well beyond those available to thrift holding company, with the special benefits banks and over time will even call into question that status carries. Further, we believe the basthe basic separation of banking and commerce ket of assets to be included under H.R. 5734 in now incorporated in public policy. Consider- the 65 percent ratio, which would include resiations of competitive equity alone dictate that dential mortgages or mortgage backed securithe privileges and restrictions of banks and ties, mobile home loans, loans for home improvement, or participation in any of these thrifts be brought into a more coherent relationinstruments, is appropriate and consistent with ship. But it is not just a matter of competitive the historic purpose and the special benefits the equity. Restrictions on powers of bank holding Congress has given to thrifts as housing lenders. companies and on "nonbank banks" will inevita- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 Federal Reserve Bulletin • July 1984 Based on this definition, according to our calcu- thrifts and securities firms applying the Glasslations, almost three-quarters of institutions in- Steagall Act to insured and uninsured savings sured by the Federal Savings and Loan Insur- and loan associations. Such a provision is necesance Corporation would currently meet this test. sary to assure safety and soundness and competi- We believe that the transition periods provided tive equity, has been recommended by the Fedin H.R. 5734—two years for savings and loans eral Home Loan Bank Board, and is strongly and ten years for mutual or stock savings banks, supported by the Federal Reserve Board. with interim targets as set in the bill, represent reasonable time frames for thrift institutions to decide whether they wish to be excluded from ACTIVITIES OF STATE-CHARTERED holding company act policies and continue to be DEPOSITORY INSTITUTIONS treated as thrifts or conform to those policies as do banks. If necessary, a longer transition period Concern has been expressed about authorizathan two years could be considered for savings tions by states permitting banks or thrifts (and and loan institutions, provided they meet interim their subsidiaries) to conduct nonbanking busitargets. Further, we agree that ownership of a nesses that would not otherwise be permitted to thrift by an industrial or commercial firm could bank holding companies under present or new be continued during the transition period and federal laws. The question must certainly be thereafter, provided that "tandem" operations asked whether it makes sense for the Congress to between the holding company and its depository work out carefully balanced arrangements for subsidiary or vice versa are not permitted. depository holding companies in the conduct of Some clarification of the proposed treatment nonbanking activities, taking full account of what of banks and thrifts with regard to tandem opera- is necessary to assure a safe and sound banking tions would be desirable. The Board's position system, only to see subsequently far different has been that tandem operations between a thrift and inconsistent arrangements established for institution and affiliated nonbanking subsidiaries state-chartered institutions under state law for of the parent holding company—in either direc- reasons that are often more concerned with tion—should not be permitted, that is, the thrift shifting revenues and jobs than with the overridcould not jointly market or offer its services and ing need to provide a secure and stable banking the products or service of the nonbanking affili- system. ates, and the nonbanking affiliates could not H.R. 5734 deals with this problem by permitmarket or offer the products or services of the ting states to authorize activities beyond the thrift. We believe that the legislation should scope of section 4(c)(8) of the Bank Holding clearly indicate that the prohibition would work Company Act or section 408 of the National in both directions. In the appendix, we have Housing Act, but requiring that such activities be suggested legislative language to accomplish this conducted only within the authorizing state and result and to make a number of other technical provided only to residents of the state. changes. These provisions directly address the prob- The bill also applies the tandem operations lems created by certain state actions, such as in limitations to relationships between banks and South Dakota, where nonbanking activities, such nonbanking affiliates of bank holding companies. as insurance underwriting and brokerage, by Bank holding companies are already subject to state-chartered banks are encouraged so long as strict antitying prohibitions in the Bank Holding these activities are directed largely out of state. Company Act and in the Board's regulations. Moreover, the proposal would allow an area of Considering these provisions and the activities state initiative and experimentation consistent limitations of the Bank Holding Company Act, I with the traditions of the dual banking system. would not see any need for the provisions of At the same time, the Board believes that one section 2(b) of H.R. 5734 related to tandem additional step should be taken to enforce basic operations between banks and bank holding national policy when questions of safety and companies. soundness are fundamentally at stake. That step Finally, the bill prohibits the affiliation of would involve a congressional decision to rule Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 565 out specific activities for banks or their affiliates depository institutions and their holding compathat the Congress specifically decides to prohibit nies. It would appropriately extend Glass-Steaor limit on grounds that the safety or stability of gall prohibitions on the intermingling of banking the banking system might be impaired—areas in and security dealings to cover affiliations with which the federal government, through the provi- securities firms by all banks and thrifts. Currentsion of a national "safety net," has a unique and ly the Glass-Steagall prohibitions arguably cover overriding interest. For example, if the Congress only member banks. The statutory omission of reaffirms its decision to exclude banking organi- explicit coverage of nonmember banks is an zations from participating in underwriting corpo- anomaly that appears to have developed as an rate debt and equity, or limits the participation of oversight rather than by congressional intent. these organizations in real estate development on Explicit coverage of thrifts is overdue, both to grounds of risk, as we believe appropriate, the assure safety and soundness and as a matter of states should not be able to overrule that judg- competitive equity. The legislation would also ment and expose the insured depository system close another potential loophole by making it to those risks. A similar point might be made clear that the Glass-Steagall limitations on the with respect to insurance underwriting and the affiliation of securities firms and depository instigeneral prohibitions on links between commerce tutions apply when securities activities are conand banking. However, in areas in which safety ducted in affiliates of depository institutions. We and soundness are not so heavily involved, such support these provisions. as in a decision to authorize real estate or insur- The bill would also prohibit all retail brokerage ance brokerage powers or travel services for activities for all types of depository institutions banking institutions, but rather involve questions or their holding companies. This would include of consumer protection and competitive equity, so-called "discount brokerage"—shorthand for an overriding federal interest does not appear to a passive brokerage function separated from be present. Consequently, state legislatures research and active management or advice with might authorize banking organizations to particirespect to specific accounts or stocks. Discount pate in these activities within the confines of brokerage, involving the purchase and sale of their own state, as H.R. 5734 provides. Here securities at the request and initiative of a cuseach state may be in at least as good a position as tomer, has been approved for bank holding comthe federal government to make the judgment as panies by the Federal Reserve Board. In the to what is desirable to protect local customers Board's view, that activity does not raise quesand local interests, while encouraging a competitions of safety and soundness or of conflict of tive environment and efficiency. interest, and is an appropriate and natural exten- In sum, we would suggest that the balance sion of services that banks and other depositories between federal and state interest be struck as have historically offered to their customers. Parfollows: (1) states may not authorize activities ticularly when conducted in a separate subsidthat the Congress has ruled out of bounds for iary of a depository institution holding company, safety and soundness reasons; and (2) states may we see no public policy reason why these instituoptionally authorize other activities but only if tions should not be able to offer discount brokerthey are conducted within separate affiliates age service. within their borders and provided to their own In fact, considerations of competitive equality residents. We have attached to this testimony a and potential benefits to consumers would sugdraft of these provisions, which the committee gest that such activities would have positive may find useful. public benefits. We believe that discount brokerage should be permitted for depository institution holding companies. A more substantive question would arise with respect to general OTHER PROVISIONS OF H.R. 5734 stock brokerage activities. If the Congress feels it important to provide limitations in this area, The legislation contains several other provisions we would confine such limitations only to a all having to do with securities activities of combination of brokerage with the dissemination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 Federal Reserve Bulletin • July 1984 of advice and research, and active solicitation of While potentially dilatory formal hearings on transactions in particular securities. applications would be limited, formal rulemaking procedures would, of course, remain in place with respect to decisions to add new activities to permissible bank holding company powers. The BANK HOLDING COMPANY PROCEDURES Board would continue to request public comments on notices and to hold informal hearings, As I noted above, the Federal Reserve has when necessary, to obtain information necessary recommended that banking legislation should to make decisions. include amendments to the Bank Holding Com- Our conclusion is that those provisions adepany Act to permit new procedures for stream- quately balance the need for reducing the regulalining the processing of applications under the tory burdens with the requirement for adequate act. These provisions do not appear in H.R. supervision to enforce fully the provisions of the 5734. The Board believes the new procedures Bank Holding Company Act. I strongly recomthat are contained in legislation being considered mend that these provisions be included in legislain the Senate would minimize the cost and bur- tion now before the committee. dens of regulation of holding companies, would provide the Board with adequate supervisory authority over the activities of holding companies and their nonbanking subsidiaries, and are NEW ACTIVITIES FOR BANK HOLDING fully consistent with the public interest. These COMPANIES provisions are desirable not only to avoid unnecessary procedural delays for bank holding com- H.R. 5734 provides for no new expanded powers panies but also are necessary to place bank for bank holding companies. In our view, considholding companies on more equal footing with erations of competitive equality as among types their competitors by eliminating the need for a of financial institutions (including thrifts), potenpositive finding of public benefits and for formal tial benefits to consumers of a broader range of hearings. As things now stand, those require- suppliers of financial services, and the need for ments, which other businesses do not face in banks to broaden their earning capacity strongly undertaking new activities, can become a tool for point to an increase in the range of banking competitors to limit bank entry into lines of related activities permitted bank holding compaactivity now dominated by others. nies. The point is reinforced by the need to In the proposed approach, new activities could assure that these companies are in a position to go forward, after notice to the Federal Reserve take advantage of the burgeoning technological Board, unless the Board found grounds for disap- developments that are enhancing the delivery of proval under statutory criteria, relevant to broad financial services. public policy considerations. Specifically, new As I have stressed, those considerations must initiatives could be disapproved if inadequacy of be—and they can be—balanced against other financial and managerial resources were demon- public policy concerns: assurance of fair and strated, if resources were widely concentrated, open competition in the provision of credit and or if there were adverse effects on bank safety other services, maintenance of impartiality of and soundness. As further protection, the Board banks and credit judgments, and avoidance of would also have general authority to set out practices that can undermine the strength of the regulations on nonbanking activities to assure bank itself, and the banking system more gener- "safe and sound financial practices," including ally. My earlier testimony before the Senate appropriate capital standards. deals with these questions at length, considering The purpose of those provisions, and the pro- each of the most significant powers in turn. vision reducing the scope for judicial review by Rather than burden you by reiterating that analycompetitors, is to reduce unnecessary regulatory sis here, I would only point out that in approachburdens while maintaining a necessary level of ing these questions, we firmly believe the issues supervision to protect public policy interests. of safety and soundness of concern to members Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 567 of the committee can be appropriately addressed BROKERED DEPOSITS in the legislative process consistent with a broadening of bank holding company powers. An important issue that has received considerable attention is the proliferation of insured brokered deposits. Developments in this area are an INTERSTATE BANKING example of how the marketplace can respond to one element of government intervention—in this We surely need a fresh congressional review of case federal deposit insurance—in a manner our entire policy toward interstate banking. that can have unintended and undesirable ef- While I understand the difficulties involved in fects. The deposit insurance agencies are rightly this issue, we also must recognize that the prolif- concerned about the proliferation of brokered eration of nonbank affiliates of bank holding deposits. Indeed, brokered deposits have in a companies operating across state lines, integrat- number of instances facilitated extremely rapid, ed loan production and "Edge Act" offices, unsustainable growth and excessive risktaking national and regional marketing of credit card by some institutions that subsequently failed or and related services, the current action of some are now in serious financial condition. If permitstates themselves to permit entry of out-of-state ted to expand without appropriate constraints, banking organizations, and the broader powers such activities could have serious and unintendof thrift institutions able to operate interstate ed effects on the insurance funds and the struchave by now led to interstate banking de facto for ture of depository institutions. many banking services. But this de facto system The Board has taken the position that legislahas inherent inefficiencies and gaps, and in some tion to permit regulatory agencies to set a cap on instances may be more difficult to operate, from insured brokered deposits—at a low level, such the standpoint of the bank, or to supervise from as 5 percent of deposits or tied to capital—would the standpoint of the regulator. be appropriate. I have attached legislative lan- While most of the issues in this controversial guage that would accomplish this. In our view, it area will need to be held over to a later Congress, should be added to this legislation. the present movement towards regional interstate banking arrangements does raise major constitutional and public policy issues that need CONCLUSION to be dealt with now. Recently, in three bank holding company merger applications under re- I cannot emphasize strongly enough the urgent ciprocal statutes of New England, the Board had need for definitive congressional action on the to address constitutional issues inherent in these legislation now before you during the current discriminatory arrangements. As anticipated, the session. Decisions cannot be postponed any basic issues in these cases are now before the longer, for if they are, the financial system will federal courts. be markedly restructured without guidance from We cannot anticipate the outcome of those the Congress. The legislation before you—H.R. actions, but we do believe the matter should be 5734—is a positive step, and as indicated, we decided as a matter of congressional policy, not support the main thrust, so far as it goes. by regulators or courts attempting to read the What we find lacking in the bill is an approprilegislature's intent into old laws originally in- ate response to the need for striking an appropritended to deal with different problems. If the ate balance in the powers permitted bank holding Congress wishes to support regional arrange- companies. Without such provision, the job of ments, legislation explicitly authorizing that ap- reform will be incomplete, only to be left to later proach should be enacted. We believe, as a Congresses, and at risk to the competitive matter of public policy, that such authorization strength of the banking organizations upon which should be for a strictly limited period, and we rely so heavily. viewed as a transition toward interstate banking Members of the committee have called attenarrangements that avoid "Balkanization" of tion to the degree of pressures and strains in the banking into regions. banking system that have called into play the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin • July 1984 federal safety net. I believe we must be extreme- incomplete legislation, deferring issues that need ly careful in drawing conclusions from those to be resolved. events. While the overall stability of the banking In sum, the basic policies of the Bank Holding system should not be in question, in individual Company Act against excessive risk, conflicts of instances there may indeed be a question raised, interest, impartiality in the credit-granting profor bankers and supervisors alike, about the cess, and concentration of resources, remain conduct of traditional banking business. Appro- sound. Those principles are now being underpriate standards for capital, for liquidity, and for mined by a haphazard pattern of interindustry credit risk are continuing questions that deserve, acquisitions and by new combinations of bankand are receiving, our attention. ing, securities, insurance, and commercial prod- But those questions affecting the use of exist- ucts. Decisions shaped by market forces working ing powers are not directly at issue in this around present outmoded law will not produce a legislation. The matters covered by H.R. 5734 do coherent framework and can only in the end deal with some implicit threats to safety and undermine and weaken the fabric of the banking soundness, particularly from the proliferation of system. competition in banking by unregulated institu- This is a critical time in our financial history. tions. New powers need to be assessed in the You have a unique opportunity to adapt the light of those concerns as well. But simply pro- enduring principles to present needs. hibiting banking organizations from competing in The time is already late. But the issues are areas consistent with criteria of safety and clearly before you, ready for decision and action. soundness—areas that would in fact enhance I urge you to move ahead with a sense of their prospects and stability—does not serve urgency, to protect and strengthen the financial either the consumer or other public policy con- system. • cerns. To that extent, H.R. 5734 strikes us as Statement by Paul A. Volcker, Chairman, Board from the exploitation of natural resources, the of Governors of the Federal Reserve System, expansion of trade has also allowed countries to before the Subcommittee on International Eco- raise their living standards by devoting their nomic Policy of the Committee on Foreign Rela- labor and physical capital to larger-scale productions, U.S. Senate, June 15, 1984.1 tion of manufactures and provision of services. The pressures of international competition asso- I am pleased to have this opportunity to discuss ciated with the expansion of world trade have the outlook for world trade and U.S. exports in encouraged the efficient use of resources, helped light of the international debt situation and dollar to restrain the forces of inflation, and fostered a interest rates and exchange rates. continuing stream of new products and technolo- The growth of international trade that we have gies that have pervasively affected the lives of all witnessed over the past several decades has of us. provided a vital boost to standards of living The growth of world trade slowed markedly— throughout the world. During the 1960s and the in both volume and value—during the first two 1970s, the volume of world trade expanded at an years of this decade and turned negative in 1982. average annual rate of about 7 percent. That To a large extent that performance reflected the expansion allowed countries with raw material recession and sluggish growth of economic activresources and fertile agricultural lands to raise ity in industrial countries. It was also affected by their incomes significantly by marketing their the slowdown of international lending to develminerals and crops outside their borders. Apart oping countries. In 1983, the volume of world trade began to 1. Chairman Volcker presented similar testimony before recover, and some forecasters are predicting the Subcommittee on International Finance and Monetary growth of about 5 or 6 percent in 1984. The Policy of the Senate Committee on Banking, Housing, and Urban Affairs on June 14, 1984. expansion of U.S. trade contributed importantly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 569 to the recovery of world trade last year, but, as If we are to restore better balance in our most of you are intimately aware, that expansion international trade accounts and relieve the presoccurred disproportionately on the side of our sures on our internationally exposed industries, imports rather than on the side of our exports. and if we are to mitigate the burdens that high U.S. exports did increase moderately in value interest rates place on borrowing countries withand volume terms during the four quarters of out undermining other objectives—including sta- 1983. They continued to increase during the early bility and growth at home—we cannot, in my months of this year, though the expansion has judgment, escape the need for decisive action to been outpaced by that of imports. Thus, today reduce our federal budget deficit. The more we face a number of serious economic policy slowly we proceed in correcting our internal concerns with international symptoms: our large imbalance, the greater are the risks not only to and growing international trade deficits, the in- our international trade position, but also to the ternational debt situation, and the high value of health of our domestic economy and our finanthe dollar. cial markets. In approaching these issues, I believe it is right The Congress is in the process of taking a first to emphasize, first, that the past year or more step toward dealing with the problem over time, has been one of vigorous economic advance in and I welcome that effort. Reducing a substantial the United States. That, in turn, has been a budget deficit, in the United States as elsewhere, powerful force assisting growth in other industri- is not easy. Popular support for painful adjustalized countries and easing the difficult adjust- ment is particularly difficult to win when the ment problems of much of the developing world. consequences of inaction are prospective rather At the same time, that progress has been accom- than immediate. That, to many, has appeared to panied by some obvious and serious imbalances be the case over the past year and a half as our in the international economy and financial sys- economy has performed remarkably well. From tem. Those international strains are a reflection, the fourth quarter of 1982 through the first quarin considerable part, of problems in internal ter of this year, our gross national product has policy here and abroad. expanded at an average annual rate of 63A per- One aspect of those problems that has re- cent in real terms, while the unemployment rate ceived a great deal of attention, internationally as has declined from its 103A percent peak at the end well as domestically, is the high level of interest of 1982 to a level of 7V2 percent in May. Morerates in the United States. Those interest rates over, the recovery has brought healthy rates of have risen over recent months under the pres- investment in producers durable equipment, in sure of rising private credit demands, as the nonresidential structures, and in housing. economy has grown, superimposed on the need Of course, these gains started from a low level, to finance an already huge federal deficit. High and for a time it could be argued that an expaninterest rates have helped attract a growing in- sionary thrust from the budget deficit could be flow of capital from abroad, and that inflow has, helpful. But, as the forward momentum of the for the time being, helped to reconcile rising economy continues and private spending and investment with the need to finance the deficit. borrowing increase, the consequences of the But that capital inflow is not without heavy continuing structural budget deficit are apparent. cost to us and to others in the short and in the That is perhaps most apparent in the deterioralong run. The essential counterpart of a net tion of our trade position. One counterpart to the capital inflow is a massive trade and current continuing federal budget deficit at a time of account deficit partly related to an appreciating growing economic activity has been the growing dollar. Increases in our interest rates add directly net inflow of capital from abroad and its counterto the strain on the external payments of heavily part, the widening deficit in our current account indebted developing countries. And, over time, transactions with other countries. In essence, the capital flows and trade imbalance will not be that growing deficit has permitted us to consume, sustainable, posing the risk of further financial to invest, and to buy "more government" than disturbances in the absence of needed policy provided by the increase in national output—the adjustments. GNP. In fact, all domestic demands have ex- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin • July 1984 paneled since the fourth quarter of 1982 at an pressed, the more difficult it becomes to maintain annual rate of S3A percent, about 2 percentage marketing networks, and the more costly and points faster than our gross national product. difficult it becomes to recover foreign sales. Looking at the financial side of the equation, The strong expansion of aggregate demand in the net inflow of capital that we have attracted the United States relative to aggregate demand in from abroad is supplementing internal savings foreign industrial economies has contributed imabout one-quarter—or more than 2 percent of portantly to the widening of our trade deficit. In the GNP—enabling us to finance our large feder- that sense, some of the deterioration in our trade al deficit while private spending on consumption position is cyclical and reflects not the loss of and investment goods has also been growing markets at home or abroad, but rather the abrapidly. sence of proportionate gains. In addition, ex- Whatever the net benefits and difficulties of ports have dropped sharply to developing counthis process to date—and both have been pre- tries that are burdened with large external debts sent—the issue for the future is how to promote a and are in the process of readjusting their econosustainable pattern that meets our interests in mies and their balance of payments positions. stable and sustained growth at home in a context This is particularly true with respect to our of growing world trade and financial stability. In neighbors in Latin America; our exports to that analyzing these prospects, it is useful to review area have dropped $15 billion since the fourth developments with respect to our external posi- quarter of 1980. Together, the change in our tion since the fourth quarter of 1980, when the cyclical position relative to foreign industrial dollar began its extraordinary appreciation. countries and the decline in our exports to debt- From that period through the first quarter of this burdened developing countries appear to explain year, our trade balance has deteriorated roughly one-third to one-half of the adverse swing in our $75 billion, despite a sizable reduction of about non-oil trade balance. $25 billion in our imports of oil. The adverse The dramatic appreciation of the dollar has swing in the non-oil trade balance has thus also had an important effect. Since the fourth amounted to about $100 billion. To put that quarter of 1980 the value of the dollar has apprefigure in perspective, the additional $100 billion ciated about 45 percent on average against the of annual sales that our tradable goods industries currencies of foreign industrial countries. Over might have retained or captured in the absence of the same period, U.S. price performance has shifts in our non-oil trade flows is two-thirds the been somewhat better than the average in foreign size of the entire annual output of our residential industrial economies, but even allowing for the building sector, which measures around $150 differential in inflation, the dollar has appreciated billion in the GNP accounts. substantially. No doubt that appreciation of the Plainly, the deterioration in our trade position dollar has helped to maintain the progress made has had profound effects spread through many against inflation during a period of vigorous firms and farms in all parts of the United States. recovery. But, if it proves inconsistent with a Those engaged in foreign trade or competing more sustainable trade position, we cannot count with imports have not shared proportionately in on the current strength of the dollar to persist the strong expansion of the U.S. economy, and indefinitely. some important industries are still operating well The dramatic appreciation of the dollar reflects below 1980 levels. Exports of all major catego- a number of forces, and the outlook for the dollar ries of goods have declined since the fourth is difficult to predict. Apart from the relatively quarter of 1980. Measured in real terms or at high level of interest rates in the United States, constant base-period prices, exports of agricul- the performance of our economy and a sense of tural goods declined 4 percent on balance, while confidence in our political stability have helped exports of nonagricultural goods declined about encourage capital inflows, particularly when ten- 15 percent. Among the leading categories of sions have increased abroad. The degree to nonagricultural goods, exports of both machin- which these forces will continue in the months ery and industrial supplies declined nearly 20 and years ahead cannot, of course, be assessed percent. The longer our exports remain de- with certainty, but the point is often made that, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 571 in a purchasing power sense, the dollar is now regenerate inflationary forces or stronger finan- "overvalued." Such calculations are necessarily cial market pressures, or both. imprecise. They differ depending upon the par- There is a straightforward and constructive ticular type of price index that is used—consum- way to deal with concerns of the kind—a way er prices, producer prices, export prices, and so fully consistent with purely domestic needs. I am forth—and upon the time period that is chosen as thinking, of course, of credible action to put the the base period for the calculations. structural budget deficit on a course that is There can be no doubt, however, that the headed toward balance within a reasonable time dollar has risen in recent years substantially period. Apart from the direct benefits of taking more than in proportion to movements in relative pressures off financial markets and reversing price levels here and abroad. Thus, the value of recent increases in interest rates, we would bethe dollar is substantially higher today than come less dependent on inflows of capital from would be warranted solely on the basis of abroad to balance our savings with our investchanges in the relative levels of U.S. and foreign ment needs. Over time, the dollar should move., price indexes. into an equilibrium consistent with a stronger, But exchange rates are clearly influenced—in and sustainable, trade position. And, the risk of the short and even in the longer run—by factors disturbingly large declines in the dollar should be other than relative rates of general price infla- ameliorated because U.S. policies would earn tion. This often is the case when there has been a the continued respect and confidence of the substantial change in the relative levels of inter- financial community. est rates, as has been the case between the While I will not try to suggest an appropriate United States and its trading partners in recent "equilibrium" value of the dollar over time, I do years. In principle, large capital inflows could believe that balance will be struck at a higher persist for some time ahead even though the level, and the risks of sharp and abrupt changes United States is now becoming a net debtor reduced, to the extent that we can build upon the internationally. But there is a serious question as progress against inflation. I also believe it is not to whether the situation is in our best interest or in our interest to see abnormal, and ultimately that of other countries. High interest rates pose temporary, strength in the dollar when such severe problems for important sectors of the strength is really a reflection of imbalances in our domestic economy and certainly for the indebted domestic policies and markets. countries. Moreover the sustainability of our Sometimes it is suggested that intervention in trade deficits and net capital inflows over a exchange markets can be useful to smooth these prolonged period are questionable, to say the fluctuations, or as some would suggest now, to least. depress the dollar in the interests of our trade A precipitous large decline in the dollar, what- position. ever its immediate cause, would not be in our In my judgment, exchange market intervention interest. If related to a reduced willingness to can play a useful role in dealing with disturbed invest in, or lend to, the United States, the market conditions or, occasionally, in signaling burden of financing the budget deficit, in compe- the desires or policy intent of the financial autition with private needs for credit, would be thorities in various countries, particularly when increased. Domestic prices and costs would be the approach is coordinated among them. But its affected. And, the prospects for achieving lower role is subsidiary: experience strongly suggests interest rates would be further clouded. that intervention alone is a limited tool that All of that emphasizes the key importance of cannot, itself, greatly or for long change market maintaining confidence in our economic policies exchange rates unless accompanied by changes and outlook. There are implications for monetary in more basic policies. In present circumstances, policy because that confidence must be rooted in as I have indicated, we have come to rely on a sense of conviction that inflation will remain inflows of capital to finance our domestic needs. under control. And there are clear consequences So long as the fiscal situation is unchanged and for fiscal policy as well because of understand- private credit demands are high, an intervention able concerns that excessive fiscal stimulus may approach that resulted directly or indirectly in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin • July 1984 curtailing that flow would risk undesirable conse- other industries if foreign countries retaliate quences for interest rates. Those risks would be against U.S. exports, if import restrictions lead particularly great if the United States were seen to higher dollar exchange rates than would otherto be embarking on a deliberate policy of depre- wise prevail, or if costs rise. Protection typically ciation. leads also to higher prices and less choice for Others suggest we attack our external deficits consumers and can be politically difficult to directly, either by erecting barriers to capital terminate, as exemplified by the current export flows or by restricting imports. Again, such restraint program on Japanese automobiles. measures do not go to the root of the difficulty. Still another essential reason for resisting pro- To the extent direct measures were successful tectionist pressures is the adverse implications of in reducing the net capital inflow, real interest protection for the export earnings of the developrates in the United States would presumably rise, ing countries. We encourage those countries to other things equal, as part of the process of take effective measures to build their productive replacing the lost saving from abroad with an structures over time, and we urge strong steps to increase in private domestic saving or a reduc- adjust their economies in the short run to genertion in private domestic investment. The burden ate the payments due on their debts. But those of our budget deficit on interest-sensitive sectors processes cannot ultimately succeed if the Unitof the U.S. economy would be intensified; the ed States and other industrial countries protect problem would be shifted without resolving it. their own markets from the competitive exports That would be true quite apart from the other of the developing countries. compelling considerations against direct con- Those developing countries have traditionally trols, which would be administratively difficult been an important market for our exports, and and contrary to our basic interest in open mar- they have the potential to be much larger. That kets. process of two-sided trade is fundamentally a Yielding to the pressures for intensified import healthy one—a process that raises our own averrestrictions also could only complicate our prob- age productivity and real income over time at the lems. Beware, in particular, of arguments sug- same time that it promotes growth in the develgesting that import restrictions designed to bene- oping countries. In a context of growing econofit one industry or another will produce more mies, we should be able to adjust to international jobs for the economy as a whole. To an individ- competition so that we can ease the process of ual firm or industry, shutting off import competi- transition for impacted workers and firms. tion offers immediate advantages; more general- That, of course, is more easily said than done. ly, it is argued that each billion dollars of the It is particularly difficult to anticipate adjustment trade deficit represents a billion dollars of do- and to accept the pressures of international commestic output foregone, other things equal. Us- petition in an environment of large and fairly ing the rule of thumb that each billion dollar's rapid swings in exchange rates. Moving toward a worth of domestic output requires about 25,000 healthier process of international development workers, it is then calculated that one million and competition over time requires that we discijobs could be created by reducing the trade pline our fiscal and monetary policies to provide deficit $40 billion. the conditions for more stable exchange rates. The pitfalls in such reasoning should be clear This brings me back to the central thrust of my at a time when the economy is already expanding remarks—the need here and elsewhere to strongly: a more rapid growth of output and achieve better balance in our basic policies and a employment than we have experienced over the more sustainable pattern of external transacpast year and a half, combined with reduced tions. capital inflows, would likely have been reflected Much has been achieved in these past few in more pressures on financial markets at the years to put the economy on a sounder footing— expense of other sectors of the economy. too much, at too great a cost, to see it all More generally, it should not be overlooked jeopardized now. Our recovery has been prothat the decision to protect one industry invari- ceeding rapidly, with little acceleration of inflaably imposes costs elsewhere. It is costly to tion. But the combined credit demands of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 573 federal government and the private sector have sectors, and risks of exchange rate and financial generated disturbing pressures on interest rates, instability. on developing countries, and on exchange rates. What is at issue is the sustainability of growth In concept, we can visualize an economic here and abroad, and our prospects for further expansion characterized by relatively high inter- progress toward price stability. In the end, I est rates and by strong private consumption and know of no way to deal with these risks, and to a large budget deficit That is what we are having. provide solid assurance that we can build on the But it has costs—costs reflected in huge trade real progress of the past, other than to carry deficits and net borrowing from abroad, potential through on the efforts to deal with the federal problems for housing and other interest-sensitive deficit. • Statement by John E. Ryan, Director, Division the spotlight on currency transactions that are of Banking Supervision and Regulation, Board out of the ordinary. Finally, the Federal Reserve of Governors of the Federal Reserve System, issues, redeems, destroys, and processes currenbefore the Subcommittee on General Oversight cy for banking organizations. In this capacity, it and Renegotiation of the Committee on Banking, provides technical expertise and information to Finance and Urban Affairs, U.S. House of Rep- law enforcement agencies on banking and curresentatives, June 20, 1984. rency matters in connection with drug-related and other criminal investigations. I appreciate the opportunity to appear before this The Federal Reserve System has primary susubcommittee on behalf of the Board of Gover- pervisory authority over approximately 1,000 nors to review the role of the Federal Reserve in state member banks and 150 Edge corporations, monitoring compliance with the Bank Secrecy domestic subsidiaries of banks that are licensed Act and its reporting requirements, and in assist- to engage in international banking. The System is ing the primary law enforcement authorities in charged by the Congress for ensuring that these discharging their enforcement responsibilities. commercial banking organizations are operated At the outset, I think it may be useful to de- in a safe and sound manner and for determining scribe briefly the activities and responsibilities of their compliance with U.S. banking laws and the Federal Reserve that have a bearing on the regulations, including the Bank Secrecy Act. We concerns of this subcommittee. First, as a bank discharge our safety and soundness and complisupervisory and regulatory agency, the Federal ance responsibilities, largely through the conduct Reserve refers to the appropriate law enforce- of on-site supervisory examinations and through ment agency any evidence of possible criminal the referrel of possible violations of law to the conduct that is brought to light through its exami- designated agency with primary responsibility nation and supervisory activities. Further, the for enforcing the relevant statute. The Federal Federal Reserve has specific responsibilities for Reserve also takes civil enforcement action, monitoring compliance with the requirements of such as the issuance of cease and desist orders, the Bank Secrecy Act of the financial institutions to prevent violations of law and unsound banking under its direct supervision. This responsibility practices and to protect the bank and the bank's was delegated to the Federal Reserve and other depositors from their adverse effects. bank regulatory agencies by the Department of In carrying out its responsibilities for state the Treasury, which has primary responsibility member banks, the Federal Reserve often relies for the enforcement of the statute. Among other on examinations conducted in alternate years by provisions, the Bank Secrecy Act requires finan- state banking authorities. These procedures are cial institutions to report certain currency trans- intended to reduce the burden associated with actions in excess of $10,000 to the Treasury overlapping regulatory authority to strengthen Department. The reporting and other require- the dual banking system, and to further cooperments of the Bank Secrecy Act were designed to ation between federal and state banking agenfrustrate organized criminal elements by putting cies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Federal Reserve Bulletin • July 1984 The examination procedures followed in moni- cerning apparent violations and possible criminal toring bank compliance with the Bank Secrecy investigations. Moreover, our examiners have Act evolved over time and have expanded as our conducted special examinations of state member experience with enforcement has broadened. Be- banks for possible violations of the Bank Secrecy ginning with the passage of the Bank Secrecy Act Act, such as the Operation Greenback project in in 1970, Federal Reserve examiners were in- south Florida, and the Federal Reserve remains structed as to its requirements in examination committed to assisting law enforcement agenschools and were provided with examination cies, under appropriate circumstances, in the procedures to check compliance. The original conduct of special investigations of possible viocompliance checklist, worked out in consultation lations. These steps reflect a long-standing desire with the Department of the Treasury, formulated and commitment on the part of the Federal more detailed examination guidelines that were Reserve to cooperate with the U.S. Treasury and forwarded to the examiners for implementation. the primary law enforcement agencies in ensur- The examination procedures presently in use ing compliance with the Bank Secrecy Act. by the banking agencies to monitor compliance The Federal Reserve also has statutory rewith the Bank Secrecy Act were revised in 1981. sponsibility for reviewing notifications of The purpose of these revisions was to strengthen changes in ownership and control involving state the agencies' ability to determine if banks are member banks. In passing upon such notificacomplying with the act and to provide the Trea- tions, the banking backgrounds of the new prinsury Department with better and more compre- cipals and any known violations of law are hensive information on possible violations of the carefully reviewed. act. In revising the examination procedures, the As a result of its responsibilities for processing banking agencies incorporated comments and currency, the Federal Reserve cooperates with suggestions from the staffs of the Treasury De- the Treasury Department and other law enforcepartment and the General Accounting Office. ment agencies by providing information concern- The procedures are designed to ensure that bank- ing currency flows into and out of the Federal ing organizations have established internal sys- Reserve Banks and their branches that result tems and procedures to ensure compliance. For from the requests of banks for currency and coin. those institutions with deficiencies or those that This information is provided monthly to a numhave engaged in unusually large cash shipments, ber of other agencies and can assist the law the procedures call for extensive testing of actual enforcement authorities in determining which transactions to determine if reports are being regions of the country have a pattern or volume prepared as required by the regulations of the of cash transactions that may warrant further Bank Secrecy Act. investigations. Several years ago, one study of In addition to the on-site evaluation of bank these flows by the Treasury Department showed compliance, the Federal Reserve reports to the what appeared to be unusually heavy inflows of Treasury Department on a quarterly basis those currency at the Miami Branch of the Federal institutions cited for apparent violations of cer- Reserve Bank of Atlanta, particularly in $50 and tain of the reporting and recordkeeping require- $100 bills, denominations that are reportedly ments. We also make specific referrals to the popular with narcotics operatives. Using the primary law enforcement authority whenever a records of the Federal Reserve, and the currency situation or violation uncovered during an exami- transaction reports filed by banks, a number of nation appears to involve possible criminal activ- financial institutions in Florida were selected for ity or other unusual circumstances. These notifi- review for compliance with the Bank Secrecy cation efforts serve as the basis for further Act as part of the effort known as Operation review by the federal enforcement agencies and, Greenback. Each federal banking agency has in some instances, may result in the initiation of conducted examinations as part of this ongoing criminal investigations by the appropriate au- effort. Moreover, each Federal Reserve Bank thorities. In connection with these reports and has been instructed to establish internal systems referrals, the Federal Reserve responds to fol- and operating procedures to notify the primary low-up questions by enforcement agencies con- banking agency when an institution under that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 575 agency's jurisdiction experiences unusually large In the final analysis, however, we do not or abnormal currency flows. This procedure can believe that it is possible for our bank examiners, assist the banking agencies in identifying institu- or for the bankers themselves for that matter, to tions that may require greater scrutiny to deter- be absolutely certain that illicit monies are not mine compliance with the reporting regulations. flowing through the banks. As we all know, Despite some isolated instances of noncompli- currency, being fungible with no lasting identity ance, we believe that the overwhelming majority to any particular transaction, is extremely diffiof senior management of the financial institutions cult to trace, and there seem to be an infinite under the supervision of the Federal Reserve do number of ways for the dishonest to frustrate or not knowingly permit their institutions to be used circumvent necessarily rigid statutory or regulaas vehicles for laundering narcotics-related or tory requirements. Nevertheless, we share the other illicit monies. Indeed, the preponderance subcommittee's concern over the obvious adof commercial banks are sound, well-run institu- verse effects that the flow of illicit monies has on tions with honest and capable management. The the social fabric of our country and on the majority of those banks cited for noncompliance integrity of financial institutions, and will continhave responded to examiner criticism and have ue to strive to ensure that our examination instituted corrective action to ensure future com- techniques serve as an effective mechanism to pliance with the Bank Secrecy Act. monitor compliance with the Bank Secrecy Act. Statement by Frederick R. Dahl, Associate Di- prior approval procedure, for such investments. rector, Division of Banking Supervision and Reg- The investments can be made, unless specifically ulation, Board of Governors of the Federal Re- disapproved by the Board, within, at most, 90 serve System, before the Subcommittee on days after the notice has been accepted. Second, International Economic Policy and Trade of the the legislation establishes quite limited grounds Committee on Foreign Affairs, U.S. House of on which the Board may object to a proposed Representatives, June 20, 1984. investment. The Board may disapprove a proposed investment only if the Board determines I appreciate the opportunity to appear before this disapproval is necessary to prevent unsafe and subcommittee on behalf of the Board of Gover- unsound banking practices, undue concentration nors to discuss the role of the Federal Reserve in of resources, decreased or unfair competition, or implementing the Bank Export Services Act. conflicts of interest; or if the Board finds that the The Bank Export Services Act, which is Title II investment would affect the financial and manaof the Export Trading Company Act of 1982, gerial resources of a bank holding company to an authorizes bank holding companies to acquire extent that is likely to have a materially adverse equity interests in export trading companies and effect on the safety and soundness of a subsidiary empowers the Federal Reserve Board to act on bank. The only other basis for disapproving an proposals to do so. It is my intent today to give a investment is that the bank holding company brief overview of the regulations adopted by the fails to furnish information about the proposal Board to implement the legislation and to sum- that is required by regulation. marize the holding company proposals acted upon by the Board to date. This overview is followed by a description of the current activities THE BOARD'S REGULATIONS of the export trading companies owned by bank holding companies. The Board's regulations implementing the Bank The Bank Export Services Act envisages a Export Services Act are brief. Their principal fairly restrictive role for the Federal Reserve in purpose is to clarify a few areas of ambiguity in relation to investments by bank holding compa- the statutory language. For the most part, these nies in export trading companies. First, it estab- clarifications reflect an attempt to limit the polishes a notification procedure, as opposed to a tential for conflicts of interest that might grow Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin • July 1984 out of bank affiliation with an export trading that the Bank Export Services Act was export company. The final regulations were promulgat- legislation, not trade legislation. Furthermore, ed on June 2, 1983. A copy of the regulations is these types of transactions might result in proattached as appendix A.1 viding substitutes for the export of U.S. goods. In adopting final regulations, there were three The third issue was whether the collateral principal issues. The first issue was the definition restrictions of section 23(a) of the Federal Reof an export trading company in which a bank serve Act (12 U.S.C. § 371(c)) should apply to holding company may invest. The problem was transactions between the export trading compathat the statutory language could be interpreted ny and the affiliated bank of the bank holding to permit a bank holding company to invest in company. Broadly speaking, credit transactions any company that principally provides its own between a bank and its parent bank holding services to non-U.S. residents. For example, the company and its nonbank subsidiaries are restatute might be read to permit a general insur- stricted in amount and must be supported by ance underwriting company to qualify as an marketable collateral. The question arose with export trading company that could be owned by respect to export trading companies because the a bank holding company so long as the customers Bank Export Services Act has a provision stating were non-U.S. residents. A number of com- that no provision of federal law in effect on menters on the proposed regulations argued for October 1, 1982, relating to collateral requiresuch an interpretation. The Board, however, ments shall apply with respect to extensions of read the legislative history of the Bank Export credit from the subsidiaries of a bank holding Services Act to support a narrower interpreta- company to its affiliated export trading company. tion—namely, that the export trading company On October 15, 1982, however, the Garn-St should serve principally as an intermediary for Germain Depository Institutions Act of 1982 producers and suppliers of goods and services in revised section 23(a) in its entirety and estabthe foreign marketing and sale of their products lished new collateral requirements for affiliate by providing a range of export trade services. lending. While some commenters on the Board's proposed regulations argued that these new col- Another aspect of the definition of an export lateral provisions should not apply to export trading company centered on the statutory retrading companies, the Board determined, on the quirement that a bank holding company-conbasis of the statutory language and its undertrolled export trading company should be "prinstanding of the legislative history, to apply the cipally engaged in exporting." The Board restrictions to loans and extensions of credit by a determined that a test that would be liberal, yet bank to its affiliated export trading company. On at the same time consistent with the congressionthe other hand, in order to allow an export al purpose of promoting exports, and not simply trading company to obtain normal trade financtrade, would be a 50 percent test: at least half of ing from an affiliated bank, the regulations inthe revenues of a bank holding company-affiliatclude a waiver of the collateral requirements ed export trading company, as measured over a where the bank provides a letter of credit for the two-year period, must be derived from exportaccount of its affiliated export trading company, ing, or facilitating the exportation of, goods and or advances funds for the purchase of goods for services. In this regard, revenues derived from the resale of which the export trading company trade between third countries (two countries has a firm order, and when the bank has a other than the United States) and countertrade security interest in the goods, or proceeds from (an export from a third country undertaken as a the sale of the goods, equal to the value of the quid pro quo for allowing U.S. goods to be letter of credit or advance. Furthermore, the imported into that country) are counted as non- Board indicated that it might grant additional export revenues for the purposes of this test. waivers based on specific requests. Again, the rationale for this determination was The initial notifications to invest in export trading companies were all acted on by the 1. The attachments to this statement are available on Board. In December 1983, however, on the basis request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. of experience up to that time, the Board conclud- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 577 ed that export trading company notifications export trading company owned by three relativecould be acted upon by the Reserve Banks under ly small New Jersey bank holding companies. delegated authority, which could expedite the The proposals reviewed by the Board can be processing. The criteria for processing notifica- separated into two broad groups. The first group tions under delegated authority are: (1) the pro- consists of those in which the export trading posed export trading company is to be a wholly company was conceived as furnishing primarily owned subsidiary, or ownership is to be shared financing and export trade services. These seronly with individuals involved in the operation of vices include market research, product research, the export trading company; (2) the bank holding freight forwarding, consulting, and advisory company investor and its lead bank meet the services. The second group is composed of those minimum capital adequacy guidelines of the companies that were expected to engage in trade Board and the Comptroller of the Currency or transactions as well. Although this would involve have capital enhancement plans acceptable to taking title to goods, these companies planned to the appropriate supervisory authority; (3) the do so only against firm orders. No bank holding proposed export trading company will take title company said that it would try to make an to goods only against firm orders, except that the overseas market for goods that they had bought company may maintain an inventory of goods of and were holding in inventory pending discovery up to $2 million; (4) the proposed activities of the of a buyer. company do not include product research or Turning to the experience of bank-affiliated design, and product modification; and (5) the export trading companies, it has to be said at the proposed leveraging of the export trading compa- outset that the first proposal by a bank holding ny (assets: capital) does not exceed 10:1. company to establish such a company was acted on by the Board in May 1983, only a little over a year ago. Actually, more than one-third of the NOTIFICATIONS ACTED UPON TO DATE proposals date only from the beginning of this year. Thus, it is not surprising that most of them As of this time, the Federal Reserve System has are still in the formative stage—getting orgaacted upon 26 notifications, involving 28 bank nized, looking for personnel, identifying markets holding companies, to establish export trading and potential customers, and the like. In those companies. The Board has not objected to any of companies in which operations have comthese notifications. menced, there are no clear indications of how Of the 28 bank holding companies that have their operations will develop in either size or filed notices to date, nine are multinational bank- character. Only a few have done trade transacing organizations, five others have assets of more tions, and those transactions have generally been than $5 billion, seven have assets between $1 quite small. Discussions with these institutions, billion and $5 billion, six have assets of less than from time to time, suggest that exploration and $600 million, and one is a foreign banking organi- experimentation will be the prime characteristics of many for some time to come. In short, it zation. appears far too early to evaluate the success of For the most part, these proposals have inthe legislation and to determine whether the volved the de novo formation of an export tradpresent rules contain impediments to the effecing company as a wholly owned subsidiary of the tive operation of these companies. bank holding company. There have been a few exceptions to this procedure, however. Several Later this year, the Board will be reviewing proposals have involved investments in going the progress of export trading companies affiliatconcerns when the attraction has been primarily ed with bank holding companies. That review is the skills and expertise of the people in the prompted by the requirement in the Bank Export companies. These companies have been small. Services Act that the Board make a report to the There have also been proposals involving joint Senate and House Banking Committees on or ventures. The most notable of these ventures is a before October 2, 1984, on the implementation of partnership involving First Chicago Corporation the Bank Export Services Act and on any and Sears World Trade. Another instance is an changes in the legislation. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

579 Announcements MARTHA R. SEGER.- APPOINTMENT AS A Finance and Business Economics. Dr. Seger was born February 17, 1932, in Adrian, Michigan, and now MEMBER OF THE BOARD OF GOVERNORS resides in Bloomfield Hills, Michigan. On July 2, 1984, the President announced the In submitting her resignation to accept a posirecess appointment of Martha R. Seger as a tion in private industry, Mrs. Teeters sent the member of the Board of Governors. Dr. Seger following letter to the President: took the oath of office, administered by Chairman Volcker, in the Board's building on that June 27, 1984 same day. Dr. Seger succeeds Nancy Hays The President Teeters whose term as a Board member expired The White House on January 31, 1984. Mrs. Teeters resigned as a Washington, D.C. 20500 Board member on June 27, 1984. On May 31, the President announced his inten- Dear Mr. President: tion to nominate Dr. Seger as a member of the Since my term as a Member of the Board of Governors Board, and confirmation hearings were held by of the Federal Reserve System has expired and you the Senate Banking Committee on June 19, 20, have nominated Martha R. Seger to the position I have 21, and 22. The Committee approved the nomi- occupied, I therefore resign. I have truly enjoyed nation on June 28, but Congress recessed before serving on the Federal Reserve Board and wish my colleagues and successor well. the nomination could be brought to the Senate itself. Sincerely, The text of the White House announcement of May 31 follows: Nancy H. Teeters The President today announced his intention to Governor Teeters received the following reply nominate Martha R. Seger to be a Member of the to her letter of resignation: Board of Governors of the Federal Reserve System for a term of 14 years from February 1, 1984. She would succeed Nancy Hays Teeters. The White House Dr. Seger is a financial economist who has been Washington serving as Professor of Finance at Central Michigan University since 1982. Previously, she was Commis- July 13, 1984 sioner of Financial Institutions for the State of Michigan in 1981-1982 and Associate Professor of Econom- Dear Mrs. Teeters: ics and Finance at Oakland University in 1980. She has also taught at the University of Michigan and the University of Windsor. Dr. Seger has had ten years' Thank you for your letter, and I accept your resignaexperience in commercial banking including serving as tion as a Member of the Board of Governors of the Chief Economist for Detroit Bank and Trust for over Federal Reserve System, effective June 27, 1984. seven years. Prior to this she was Financial Economist Your service to the Nation in this capacity has been in the Capital Market Section at the Federal Reserve greatly appreciated. I know that in the years ahead you Board. will be able to look back with pride on your accomplishments. Dr. Seger is a Director of Comerica, Inc., and the You may be sure that you have my best wishes for Comerica Bank-Detroit. She is a Member of the National Association of Business Economists, the Ameri- every future success. can Economics Association, the Economic Club of Detroit and the Women's Economic Club. Sincerely, She has three degrees from the University of Michigan, including an M.B.A. in Finance and a Ph.D. in Ronald Reagan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Federal Reserve Bulletin • July 1984 FINANCIAL RESULTS OF PRICED SERVICE 2. Pro forma income statement for priced services of OPERATIONS Federal Reserve Banks, for the quarter ended March 31, 1984 The Federal Reserve Board has issued a report Millions of dollars providing financial results of Federal Reserve Income or . „™,„» expense item Amount priced service operations for the quarter ended March 31, 1984. Income Services provided to depository institutions ... 139.6 The Board issues a report on priced services annually and a priced service balance sheet and EPxropdenuscetiso n expenses 111.0 LESS: Board approved subsidies 1.5 109.5 income statement quarterly. The financial statements, which are shown in tables 1 and 2, are Income from operations 30.1 designed to reflect standard accounting prac- Imputed costs tices, taking into account the nature of the Feder- Interest on float 12.2 Interest on short-term debt .8 al Reserve's activities and its unique position in Interest on long-term debt 2.2 Sales taxes 1.2 this field. FDIC insurance .3 16.7 Income from operations after imputed costs ... 13.4 1. Pro forma balance sheet for priced services of Federal Reserve Banks, March 31, 1984 Other income and expenses Investment income 27.9 Millions of dollars Earnings credits 26.4 1.5 ASSETS Short-term assets Income before income taxes 14.9 Imputed reserve requirements on clearing balances 147.4 Imputed income taxes 5.8 Investment in marketable securities 1,080.6 Receivables 50.1 Net income 9.1 Materials and supplies 4.3 Prepaid expenses 3.5 MEMO Net items in process of collection (float) 312.4 Targeted return on equity 5.9 Total short-term assets 1,598.3 NOTE. Details may not add to totals due to rounding. Accompany- Long-term assets ing notes are an integral part of these financial statements. Premises 169.1 Furniture and equipment 99.2 Leases and leasehold improvements 2.3 marketable securities, receivables, materials and supplies, prepaid Total long-term assets 270.6 expenses, and items in the process of collection. Long-term assets are primarily fixed assets, such as premises and equipment. Total assets 1,868.9 The imputed reserve requirement on clearing balances and investment in marketable securities reflects the Federal Reserve's treatment LIABILITIES of clearing balances maintained on deposit with Reserve Banks by Short-term liabilities depository institutions. For balance sheet and income statement Clearing balances 1,228.0 presentation, clearing balances are reported on a basis comparable Balances arising from early credit of with reporting of compensating balances held by respondent instituuncollected items 312.4 tions with correspondents. That is, respondent balances held with a Short-term debt 57.9 correspondent are subject to a reserve requirement as determined by Total short-term liabilities 1,598.3 the Federal Reserve. This reserve requirement must be satisfied either with vault cash or with non-earning balances maintained at a Reserve Long-term liabilities Bank. Following this model, clearing balances maintained with Re- Obligations under capital leases .4 serve Banks for priced service purposes should also be subject to Long-term debt 85.9 reserve requirements. Therefore, a portion of the clearing balances held with the Federal Reserve are identified on the balance sheet as Total long-term liabilities 86.3 imputed reserve requirements on clearing balances, representing vault cash and due from balances. The remaining amount would be avail- Total liabilities 1,684.6 able for investment. For these purposes, the Federal Reserve assumes that all such balances would be invested in three-month Treasury bills. Equity 184.3 Other short-term assets reflect the total of either (1) assets directly used in providing priced services or (2) an allocation of the portion of Total liabilities and equity 1,868.9 joint assets used in providing priced services. Receivables primarily reflect amounts due the Reserve Banks for priced services that have NOTE. Accompanying notes are an integral part of these financial been provided to institutions for which payment has not yet been statements. received. Receivables also include that share of suspense account and difference account balances related to priced services. Materials and supplies reflect short-term assets necessary for the NOTES TO THE FINANCIAL STATEMENTS ongoing operations of priced service areas for which payment has Balance Sheet (table 1) been made. Prepaid expenses represent other prepaid items such as salary advances and travel advances for priced service personnel and Federal Reserve assets are classified as short- or long-term. Short- the portion of priced service leasehold improvements that will be term assets represent assets such as cash and due from balances, amortized to current expense during the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 581 Net items in the process of collection is the amount of float that will Other income and expenses are comprised of income on clearing be added to the cost base subject to recovery. Thus, it is the difference balances and the cost of earnings credits granted to depository between cash items in the process of collection and deferred availabil- institutions. Income represents the average coupon equivalent yield ity cash items. Therefore, the asset item on the balance sheet on three-month Treasury bills applied to the total clearing balance corresponds to the amount of float that the Federal Reserve must maintained, adjusted for the effect of reserve requirements. Expenses recover through fees to satisfy the Monetary Control Act. Conven- for earnings credits were derived by applying the average federal tional accounting procedures would call for the gross amount of cash funds rate to the required portion of the clearing balances. The items and deferred availability items to be included on a balance sheet. Federal Reserve is committed to adjusting the federal funds rate at However, because the gross amounts have no implications for income which earnings credits are paid on clearing balances in order to take or costs and no implications for the calculation of the private sector into account the effect of reserve requirements. The software changes adjustment factor (PSAF), they are not reflected on the pro forma necessary to implement this adjustment are complex and will take balance sheet. some time to complete; however, the adjustment is expected to be Long-term assets that are reflected on the balance sheet have been made starting November 1, 1984. Had the reserve adjustment to allocated to priced services using a direct determination basis. This earnings credits been in place in the first quarter, and assuming no approach was adopted along with other changes in calculating the resulting shift in clearing balances, the expenses of earnings credits PSAF for 1984. The direct determination method utilizes the Federal would have been about $24.6 million with a resulting increase in net Reserve's Planning and Control System (PACS) to directly associate clearing balance income of $1.8 million and an increase in net income single-purpose assets and to apportion assets used jointly in the of $1.2 million to $10.3 million. provision of different services to priced and non-priced services. Imputed income taxes are calculated at the effective tax rate used in Additionally, also resulting from changes to the PSAF methodology, the PSAF calculation applied to the net income before taxes. an estimate of the assets of the Board of Governors related to the The targeted return on equity represents the after-tax rate of return development of priced services has been included in long-term assets on equity that the Federal Reserve would have earned based on a in the premises account. model of bank holding companies. Long-term assets also include an amount for capital leases. In accordance with generally accepted accounting principles, the Federal Reserve in 1984 has begun to capitalize leases that qualify for capitalization. Leases had not been shown previously on Federal Reserve balance sheets due to immateriality. While the impact in the COORDINATION OF PRICED SERVICE future is also likely to be immaterial, procedures have been estab- ACTIVITIES lished in order to disclose these assets on a basis consistent with accounting and disclosure practices of private sector firms. These assets also include leasehold improvements. The current portion of Effective July 1, 1984, the Federal Reserve leasehold improvements has been included in prepaid expenses. A matched-book capital structure for those assets that are not "self- Board has made the following changes relating to financing" has been used to determine the liability and equity the management and coordination of the priced amounts. Short-term assets are financed with short-term debt. Longterm assets are financed with long-term debt and equity in a propor- service activities of the Federal Reserve Banks. tion equal to the ratio of long-term debt and equity of the bank holding • Edward G. Boehne, President of the Federal companies used in the private sector adjustment model. Other short-term liabilities include clearing balances maintained at Reserve Bank of Philadelphia, has been appoint- Reserve Banks and deposit balances arising from float. Other long- ed a member and Chairman of the Pricing Policy term liabilities consist of obligations on capital leases. Committee (PPC). He succeeds E. Gerald Corri- System Income Statement (table 2) gan, President of the Federal Reserve Bank of The income statement reflects the income and expenses for priced Minneapolis. Mr. Corrigan will continue to serve services. Included in these amounts are Board approved subsidies, as an ex-officio member of the Committee. imputed float costs, imputed financing costs, and the income and cost related to clearing balances. • Henry R. Czerwinski, First Vice President, Revenues reflect charges to depository institutions for priced ser- Federal Reserve Bank of Kansas City, has been vices. These revenues are realized through one of two methods: direct charges to an institution's deposit account or charges against accumu- named to the newly established position of Execlated earnings credits. Income includes charges for per-item fees, utive Director for Federal Reserve Priced Serpackage fees, explicitly priced interterritory check float, account maintenance fees, shipping and insurance fees, and surcharges. Pro- vices. While he will remain First Vice President duction expenses include direct, indirect, and other general adminis- of the Kansas City Bank, Mr. Czerwinski will trative expenses generated by priced service activities. Other expenses relate to the expenses of Board staff working directly on the devote a substantial portion of his time to the development of priced services and amounted to $0.4 million in the oversight and coordination of the priced service first quarter of 1984. Board approved subsidies consist of a program established for the activities of the Reserve Banks under the general commercial automated clearinghouse (ACH) service. The incentive direction of the PPC and the Board of Goverpricing program established for the ACH service provides for fee structures designed to recover an increasing share of expenses. In nors. Mr. Czerwinski will remain a member of 1984, ACH revenues are intended to recover 60 percent of costs plus the PPC. the private sector adjustment. This incentive pricing program is being phased out, with complete elimination planned in 1985. • Theodore H. Roberts, President, Federal Re- Imputed float costs include the value of float that was intended to be serve Bank of St. Louis, has been appointed a recovered, either explicitly or through per-item fees, during the first quarter of 1984 for the commercial check, automated clearinghouse, member of the PPC. and book-entry securities transfer services. In the second quarter of Lyle E. Gramley, Member of the Board of 1984, float recovery for the noncash coupon collection service will be implemented. Also included in imputed costs is the interest on short- Governors, Theodore E. Allison, Staff" Director and long-term debt used to finance priced service assets through the for Federal Reserve Activities at the Board of PSAF and the sales taxes and FDIC insurance, which the Federal Reserve would have paid had it been a private sector firm. Governors, and William H. Hendricks, First Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

582 Federal Reserve Bulletin • July 1984 Vice President, Federal Reserve Bank of Cleve- MEETING OF CONSUMER ADVISORY land, will continue as members of the PPC. COUNCIL The Federal Reserve Board announced that its AMENDMENT TO REGULATION L Consumer Advisory Council met on July 18 and 19, 1984, in sessions open to the public. The Federal Reserve Board amended its Regula- The Council's function is to advise the Board tion L (Management Official Interlocks) effective on the exercise of the Board's responsibilities June 11, 1984, to conform it to recent legislation under the Consumer Credit Protection Act and that deleted all references in the Depository on other matters on which the Board seeks its Institution Management Interlocks Act to "stan- advice. dard metropolitan statistical areas" and substituted the new classifications for metropolitan statistical areas now in use by the Federal Office CHANGE IN BOARD STAFF of Management and Budget. In a joint notice for publication in the Federal The Board of Governors has announced the Register, the Office of the Comptroller of the appointment of George M. Lopez to the official Currency, the Federal Deposit Insurance Corpo- staff as Assistant Director in the Division of ration, the Federal Home Loan Bank Board, and Support Services with oversight responsibility the National Credit Union Administration an- for the Procurement, Communications, Duplicatnounced that they are similarly amending their ing, Publications, Security, and Motor Transport regulations. The text of the notice is available at services. District Federal Reserve Banks. Mr. Lopez came to the Board in July 1975. He has a B.S. in Business Administration from the University of Wyoming. PROPOSED ACTIONS The Federal Reserve Board has requested by SYSTEM MEMBERSHIP: September 12, 1984, comment on proposed revi- ADMISSION OF STATE BANKS sions of its Regulation K (International Banking Operations) concerning chiefly the international The following banks were admitted to memberoperations of U.S. banking organizations. ship in the Federal Reserve System during the The Federal Reserve Board also published for period June 10 through July 10, 1984: public comment a proposed amendment to Regulation J (Collection of Checks and Other Items Colorado and Wire Transfers of Funds) that would require Englewood .. First Bank of Araphoe/Yosemite a depository institution upon which a check is Delaware drawn (payor institution) to provide notification Wilmington.. Marine Midland Bank Delaware to the depository institution in which the check is Florida first deposited (institution of first deposit) that a Destin Florida State Bank large dollar check is being returned. The Board Hialeah Trust Bank requested comment by August 31, 1984. Miami Metro Bank of Dade County Texas Houston Ellington Bank of Commerce Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

583 Legal Developments AMENDMENTS TO REGULATION L same time as a management official of another depository organization not affiliated with it if: The Board of Governors of the Federal Reserve Sys- (1) Both are depository institutions, each has an tem, the Office of the Comptroller of the Currency, the office in the same relevant metropolitan statistical Federal Deposit Insurance Corporation, the Federal area, and either institution has total assets of $20 Home Loan Bank Board, and the National Credit million or more; Union Administration (collectively referred to as the (2) Offices of depository institution affiliates of both "agencies") are amending their respective regulations are located in the same relevant metropolitan statisimplementing the Depository Institution Management tical area and either of the depository institution Interlocks Act, which generally prohibits certain man- affiliates has total assets of $20 million or more; or agement official interlocks between unaffiliated depos- (3) One is a depository institution that has an office itory institutions and depository holding companies in the same relevant metropolitan statistical area as depending upon their asset size and location. The a depository institution affiliate of the other and amendments conform the regulations to a change in either the depository institution or the depository the Depository Institution Management Interlocks Act institution affiliate has total assets of $20 million or which deleted all references to "Standard Metropoli- more. tan Statistical Areas" ("SMSAs") and substituted therefore the new classifications for Metropolitan Sta- 4. Section 212.6 is amended by revising paragraph (a) tistical Areas adopted by the Office of Management to read as follows: and Budget. Effective June 11, 1984, the Board of Governors Section 212.6—Changes in Circumstances amends Regulation L, 12 C.F.R. Part 212 is amended as follows: (a) Non-grandfathered interlocks. If a person's service as a management official is not grandfathered under Part 212—Management Official Interlocks section 212.5 of this part, the person's service must be terminated if a change in circumstances causes such 1. The authority citation for Part 212 reads as follows: service to become prohibited. Such a change may AUTHORITY: 12 U.S.C. 3201 et seq. include, but is not limited to, an increase in asset size 2. Section 212.2 is amended by adding a new para- of an organization due to natural growth, a change in graph (n) to read as follows: relevant metropolitan statistical area or community boundaries or the designation of a new relevant metro- Section 212.2—Definitions politan statistical area, an acquisition, merger, or consolidation, the establishment of an office, or a disaffiliation. (n) "Relevant metropolitan statistical area" means a * * * ** Primary Metropolitan Statistical Area, a Metropolitan Statistical Area, or a Consolidated Metropolitan Statistical Area that is not comprised of designated Pri- AMENDMENT TO RULES REGARDING mary Metropolitan Statistical Areas as defined by the DELEGATION OF AUTHORITY Office of Management and Budget. The Board of Governors is amending 12 C.F.R. Part 3. Section 212.3 is amended by revising paragraph (b) 265, its Rules Regarding Delegation of Authority, to to read as follows: delegate to the Director of the Division of Banking Supervision and Regulation the authority to determine Section 212.3—General Prohibitions the need for establishment and the amount of any allocated transfer risk reserves against certain interna- (b) Metropolitan Statistical Area. A management offi- tional assets, pursuant to the International Lending cial of a depository organization may not serve at the Supervision Act of 1983 and the Board's Regulation K Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

584 Federal Reserve Bulletin • July 1984 (12 C.F.R. § 211.43(b)), and to notify banking institu- Board's Order by the United States Court of Appeals tions of such determination. for the Second Circuit. It has also petitioned the Board Effective June 14, the Board of Governors to stay its Order pending resolution by the Second amends its Rules Regarding Delegation of Authority Circuit Court of Appeals of the constitutional issues (12 C.F.R. Part 265) by adding a new section, raised by the Connecticut statute. 265.2(c)(32) to read as follows: On March 26, 1984, the Board approved two other New England interstate transactions2 despite protests Part 265—Rules Regarding Delegation of from Citicorp and other protestants that raised consti- Authority tutional issues identical to the issue in this case. The protestants sought judicial review of the Board's Or- Section 265.2—Specific Functions Delegated to ders in the previous cases before the United States Board Employees and to Federal Reserve Court of Appeals for the Second Circuit,3 and on April Banks 24, 1984, that Court stayed the effectiveness of the Board's Orders pending the Court's decision on the merits of the cases. In view of the decision of the (32) Under the provisions of Subpart D of the Court of Appeals to stay the Board's prior Orders and Board's Regulation K (12 C.F.R. Part 211), to the fact that this case raises the same substantive determine the need for establishment and the issues, and considering the factors relevant to a deciamount of any allocated transfer risk reserve against sion on a stay motion, the Board believes that the certain international assets and to notify banking interests of administrative and judicial efficiency as institutions of the determination and the amount of well as considerations of fairness require the Board to such reserve and whether such reserve may be grant the petition of Citicorp and to stay its Order reduced. approving the application of Bank of Boston Corporation to acquire Colonial Bancorp, Inc. BANK HOLDING COMPANY, BANK MERGER, AND Accordingly, the Board hereby stays the effective- BANK SERVICE CORPORATION ORDERS ISSUED ness of its Order approving the application of Bank of BY THE BOARD OF GOVERNORS Boston Corporation to acquire Colonial Bancorp, Inc., pending judicial review of this case by the United Orders Issued Under Section 3 of the Bank States Court of Appeals for the Second Circuit. Holding Company Act By order of the Board of Governors, effective June 11, 1984. Bank of Boston Corporation Boston, Massachusetts Voting for this action: Chairman Volcker and Governors Partee, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Teeters. Stay of Board's Order Approving Acquisition of a Bank Holding Company JAMES MCAFEE [SEAL] Associate Secretary of the Board By Order dated May 18, 1984, the Board approved the application of Bank of Boston Corporation, Boston, Massachusetts, to acquire Colonial Bancorp, Inc., Canadian Commercial Bank Waterbury, Connecticut, and thereby to acquire Colo- Edmonton, Alberta, Canada nial Bank, Waterbury, Connecticut. The Board's approval of this interstate acquisition of a bank was made Order Approving Acquisition of Shares of a possible by the Connecticut statute authorizing, under Bank Holding Company certain conditions, the acquisition of Connecticut banks by bank holding companies located in other Canadian Commercial Bank, Edmonton, Alberta, New England states.1 Canada, a bank holding company within the meaning Citicorp, New York, New York, protested the application in a timely manner on the basis that the Connecticut interstate banking statute unconstitutionally 2. Bank of New England Corporation, Boston, Massachusetts, to discriminates against non-New England bank holding merge with CBT Corporation, Hartford, Connecticut, 70 FEDERAL RESERVE BULLETIN 374 (1984), and Hartford National Corporation, companies. Citicorp has sought judicial review of the Hartford, Connecticut, to acquire Arltru Bancorporation, Lawrence, Massachusetts, 70 FEDERAL RESERVE BULLETIN 354 (1984). 3. Northeast Bancorporation, Inc. v. Board of Governors of the Federal Reserve System, No. 84-4047 (2d Cir. filed March 27, 1984); 1. 1983 Conn. Acts 411 (Res. Sess.) entitled "An Act Concerning Citicorp v. Board of Governors of the Federal Reserve System, Nos. Interstate Banking," § 2. 84-4051 and 84-4053 (2d Cir. filed March 30, 1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 585 of the Bank Holding Company Act of 1956, as amend- Thus, the Board concludes that considerations related (12 U.S.C. § 1841 et seq.), has applied for the ing to banking factors are consistent with approval, as Board's approval pursuant to section 3(a)(3) of the Act are considerations relating to the convenience and (12 U.S.C. § 1842(a)(3)), to increase its ownership of needs of the community to be served. Accordingly, Westlands Diversified Bancorp, Santa Ana, California based on the foregoing and other facts of record, the ("WDB"), from 41.7 percent to 100 percent and Board has determined that consummation of the transthereby increase its ownership of Westlands Bank, action would be consistent with the public interest and Santa Ana, California ("Bank").1 that the application should be approved. Notice of the application, affording interested per- In view of all of the facts of record and the request sons an opportunity to submit comments, has been by the California Superintendent of Banks that this given in accordance with section 3(b) of the Act (49 application be processed on an expedited basis, the Federal Register 18179). The time for filing comments Board has determined that the conditions specified in has expired, and the Board has considered the applica- section 11(b) of the Act for consummation of a propostion and all comments received in light of the factors al immediately after Board approval are present in this set forth in section 3(c) of the Act. case. Accordingly, consummation of this transaction Applicant, through its subsidiary CCB Bancorp, may take place immediately. The transaction shall not indirectly controls 41.7 percent of Bank, the 26th be consummated later than three months after the largest commercial banking organization in California, effective date of this Order unless the period for with aggregate deposits of $390.8 million, representing consummation is extended for good cause by the 0.23 percent of the total deposits in commercial banks Board or the Federal Reserve Bank of San Francisco in the state.2 Bank operates in four markets in Califor- under delegated authority. nia and controls less than 1 percent of total deposits in By order of the Board of Governors, effective commercial banks in each market.3 Neither Applicant June 11, 1984. nor any of its principals is affiliated with any other banking organization in these markets, and it appears Voting for this action: Chairman Volcker and Governors that consummation of the proposal will not result in Partee, Rice, and Gramley. Absent and not voting: Goversignificant adverse effects upon competition in any nors Martin, Wallich, and Teeters. relevant area. The financial and managerial resources and future JAMES MCAFEE prospects of Applicant are consistent with the approv- [SEAL] Associate Secretary of the Board al of this acquisition, particularly in light of Applicant's recent management changes and its recent issuance of additional preferred stock. Bank experi- C.Y. Tung Financial Corporation enced rapid growth over the past three years as a Hong Kong, B.C.C. result of a substantial increase in its real estate lending. As a result of this growth and substantial loan American Asian Bancorp losses experienced in 1983, Bank's capital is signifi- San Francisco, California cantly below the minimum levels specified by the appropriate banking supervisory authorities. WDB's Order Approving Formation of a Bank Holding and Bank's financial and managerial resources will be Company strengthened as a result of consummation of this proposal, particularly in light of Applicant's commit- C.Y. Tung Financial Corporation, Hong Kong, ment to raise Bank's capital substantially above the B.C.C., and American Asian Bancorp, San Francisco, minimum capital levels specified by the appropriate California, have applied for the Board's approval banking supervisory authorities. under section 3(a)(1) of the Bank Holding Company Act ("the Act") (12 U.S.C. § 1842(a)(1)) to become bank holding companies by acquiring directly or indi- 1. Applicant proposes to acquire WDB by merging it with West- rectly the voting shares of American Asian Bank, San lands Acquisition Corporation, a newly organized, wholly-owned Francisco, California ("Bank"). Upon consummation subsidiary of Applicant. Applicant also has applied to acquire directly of the proposed transaction, C.Y. Tung Financial or indirectly 10,000,000 newly issued shares of WDB if the merger cannot be consummated. Corporation would own at least 65 percent of the Applicant and CCB Bancorp have also applied to retain the 2.7 voting shares of American Asian Bancorp, which will percent of WDB's voting shares that were acquired by foreclosure in own all of the voting shares of Bank. satisfaction of a debt previously contracted. 2. All banking data are as of September 30, 1983. Notice of the applications, affording an opportunity 3. These banking markets are as follows: the Los Angeles RMA, for interested persons to submit comments, has been the San Diego RMA, the Sacramento RMA, and the San Francisco/ Oakland RMA. given in accordance with section 3(b) of the Act. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

586 Federal Reserve Bulletin • July 1984 time for filing comments has expired and the Board records in the United States available to the Board on has considered the applications and all comments request together with any additional information that received in light of the factors set forth in section 3(c) the Board may require concerning the business and of the Act. financial condition of C.Y. Tung Financial Corpora- C.Y. Tung Financial Corporation is a nonoperating tion. foreign corporation organized solely for the purpose of The financial and managerial resources and future acquiring and holding shares of American Asian Ban- prospects of Bank appear satisfactory in light of comcorp and is wholly owned by a foreign individual. mitments made by C.Y. Tung Financial Corporation American Asian Bancorp is a nonoperating domestic and its principal shareholder to inject additional capital corporation organized for the purpose of holding the into Bank as part of the merger between Bank and shares of Bank. The proposed transactions represent Toronto Dominion Bank of California. Based on all of essentially corporate reorganizations by the current the facts of record, including the commitments made shareholders of Bank. by Applicants, the Board has determined that the Upon consummation of the proposed transactions, considerations relating to banking factors are consist- Applicants would control one of the smaller commer- ent with approval of these applications. The Board has cial banking organizations in California.1 The Federal determined that considerations relating to the conve- Deposit Insurance Corporation and the California nience and needs of the communities to be served are State Banking Department have recently approved the also consistent with approval of these applications. merger of Toronto Dominion Bank of California, San Based on all the facts of record and commitments Francisco, California, into Bank. Upon consummation made by Applicants and the principal shareholder of of that merger, Bank will have total assets of approxi- C.Y. Tung Financial Corporation, the Board has demately $190.3 million and will rank 24th among com- termined that these applications should be, and hereby mercial banking organizations in the San Francisco are, approved. The acquisitions shall not be consumbanking market, with less than one percent of the total mated before the thirtieth day following the effective deposits in commercial banks in the market.2 Inas- date of this Order, or later than three months after the much as Applicants and their principal shareholders effective date of this Order, unless such period is do not control any other banks in California or conduct extended for good cause by the Board or by the any nonbanking business in the United States,3 con- Federal Reserve Bank of San Francisco under delegatsummation of the proposed transactions would have ed authority. no significant adverse effects on either existing or By order of the Board of Governors, effective potential competition in any relevant market and June 4, 1984. would not increase the concentration of resources in any relevant area. Voting for this action: Governors Partee, Teeters, Rice, The financial and managerial resources and future and Gramley. Absent and not voting: Chairman Volcker, and Governors Martin and Wallich. prospects of C.Y. Tung Financial Corporation and American Asian Bancorp are considered satisfactory. In this connection, neither Applicant has any debt nor JAMES MCAFEE will incur any debt as a result of the proposed acquisi- [SEAL] Associate Secretary of the Board tion. Moreover, C.Y. Tung Financial Corporation has committed to consent to the jurisdiction of the United C.Y. Tung & Sons Co., Inc. States, to appoint an agent for service of process in the Hong Kong, B.C.C. United States, and to maintain adequate books and Order Approving Formation of a Bank Holding Company C.Y. Tung & Sons Co., Inc., Hong Kong, B.C.C., has 1. All banking data are as of March 31, 1984. 2. The San Francisco banking market is approximated by the San applied for the Board's approval under section 3(a)(1) Francisco RMA. of the Bank Holding Company Act ("the Act") 3. The sole shareholder of C.Y. Tung Financial Corporation is an (12 U.S.C. § 1842(a)(1)) to become a bank holding individual who also owns 100 percent of another company that has applied for Board approval to become a bank holding company and to company by increasing from approximately 24 percent acquire approximately 47 percent of the voting shares of a bank to 48 percent its ownership of the voting shares of located in New York. These two companies will have two directors in Global Bancorporation, New York, New York, a common. See, C. Y. Tung & Sons Co., Inc., Board Order of even date. Because these two companies are owned and controlled by a common registered bank holding company by virtue of its individual, the two banks have been deemed part of a chain banking ownership of Global Union Bank, New York, New organization for purposes of the Board's analysis of these applica- York ("Bank"). tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 587 Notice of the application, affording an opportunity al of this application. The Board has determined that for interested persons to submit comments, has been considerations relating to the convenience and needs given in accordance with section 3(b) of the Act. The of the communities to be served are also consistent time for filing comments has expired and the Board with approval of the application. has considered the application and all comments re- Based on all the facts of record and commitments ceived in light of the factors set forth in section 3(c) of made by Applicant and its principal shareholder, the the Act. Board has determined that the application should be, Applicant was organized solely for the purpose of and hereby is, approved. The acquisition shall not be acquiring and holding shares of Global Bancorporation consummated before the thirtieth day following the and is wholly owned by a foreign individual. Upon effective date of this Order, or later than three months acquisition of the shares of Global Bancorporation after the effective date of this Order, unless such and, indirectly, Bank, Applicant would control one of period is extended for good cause by the Board or by the smaller commercial banking organizations in New the Federal Reserve Bank of New York under delegat- York.1 Bank has total assets of $47.6 million and ranks ed authority. 95th among commercial banking organizations in the By order of the Board of Governors, effective Metropolitan New York banking market, with less June 4, 1984. than one percent of the total deposits in commercial banks in the market.2 Inasmuch as Applicant and its Voting for this action: Governors Partee, Teeters, Rice, principal control no other banks in New York and and Gramley. Absent and not voting: Chairman Volcker, and conduct no nonbanking business in the United States,3 Governors Martin and Wallich. consummation of the proposed transaction would have no significant adverse effects on either existing or JAMES MCAFEE potential competition in any relevant market and [SEAL] Associate Secretary of the Board would not increase the concentration of resources in any relevant area. The financial and managerial resources and future United Banks of Colorado, Inc. prospects of Applicant and Bank are considered satis- Denver, Colorado factory. In this connection Applicant currently has no debt and will not incur any debt as a result of the Order Approving Acquisition of a Bankers' Bank proposed acquisition. Moreover, Applicant has committed to consent to the jurisdiction of the United United Banks of Colorado, Inc., Denver, Colorado States, to appoint an agent for service of process in the ("Applicant"), has applied for the Board's approval United States, and to maintain adequate books and under section 3(a)(3) of the Bank Holding Company records in the United States available to the Board on Act ("Act") (12 U.S.C. § 1842(a)(3)) to acquire indirequest together with any additional information that rectly 85 percent of the voting shares of Westnet Bank, the Board may require concerning Applicant's busi- N.A., Denver, Colorado ("Bank"), a proposed ness and financial condition. Based on all of the facts de novo bankers' bank.1 Notice of the application, of record, including the commitments made by Appli- affording opportunity for interested persons to submit cant, the Board has determined that the considerations comments and views, has been given in accordance relating to banking factors are consistent with approv- with section 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). 1. All banking data are as of December 31, 1983. Applicant is the largest banking organization in 2. The Metropolitan New York banking market includes New York City; Nassau, Putnam, Rockland, Westchester, and western Suffolk Colorado, controlling total deposits of $2.74 billion, Counties in New York State; the northeastern two-thirds of Bergen County and eastern Hudson County in New Jersey; and southwestern Fairfield County in Connecticut. 3. The sole shareholder of Applicant is an individual who also owns 100 percent of another company that has applied for Board approval to 1. Seventeen of Applicant's present and proposed banking subsidbecome a bank holding company and to acquire 67 percent of the iaries each propose to acquire 5 percent of Bank's voting shares. This voting shares of a bank operating in California. These two companies would result in indirect control by Applicant of 85 percent of Bank's will have two directors in common. See, C. Y. Tung Financial Corpo- voting shares. The following banks also would each acquire 5 percent ration, Board Order of even date. Because these two companies are of Bank's voting shares: Wells Fargo Bank, N.A., San Francisco, owned and controlled by a common individual, the two banks have California, Bank of Hawaii, Honolulu, Hawaii, and Valley National been deemed part of a chain banking organization for purposes of the Bank of Arizona, Phoenix, Arizona (collectively with Applicant, the Board's analysis of these applications. "Organizers"). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

588 Federal Reserve Bulletin • July 1984 which represent 16.2 percent of the total deposits in percent or more of the equity of Bank. Moreover, no commercial banks in Colorado.2 Section 404 of the single bank or bank affiliate would control Bank's Garn-St Germain Depository Institutions Act of 1982 board of directors. Based upon the foregoing, the authorized the Comptroller of the Currency to charter Board concludes that the proposed investments are national "bankers' banks," which are limited-charter consistent with the Policy Statement and that no entity institutions owned exclusively by depository institu- outside of Colorado would control Bank or exert a tions and which provide services solely to depository controlling influence over Bank for purposes of secinstitutions and their directors, officers, and employ- tion 2(a)(2) of the Act. ees.3 A national bank is permitted to own stock (not in In view of the nature of Bank's proposed activities, excess of 5 percent of the voting shares) in a bankers' Bank would compete only with other banks that offer bank provided that the bankers' bank and all of its correspondent banking services. Bank, as a de novo subsidiaries provide services only to depository insti- provider of these services, may be expected to exert a tutions. procompetitive influence and to foster increased com- Bank will not do business with the general public; petition in the market for correspondent banking and instead, it will operate primarily as a correspondent other bankers' bank services. Although certain of bank for and on behalf of depository institutions Bank's services are now provided by Bank's member predominantly located in the western United States. depository institutions, the advantages of economies Its services may encompass any activity permitted by of scale and joint operations would be available the Comptroller for national bankers' banks, but ini- through Bank and would allow members an opportunitially Bank proposes to provide, in addition to tradi- ty to remain competitive with other financial institutional correspondent banking services: a funds settle- tions. Accordingly, the Board concludes that consumment service; a clearing center for brokerage orders mation of the proposal would not have any substantial placed with member depository institutions; shared adverse effects on competition. data processing and banking operations centers; and a The financial and managerial resources of Appliloan participation service, all on behalf of member cant, its subsidiaries, and Bank are regarded as satisdepository institutions. factory, and their prospects appear favorable. Con- Applicant proposes to conduct its bankers' bank summation of the proposed transaction would result in operations from an office located in Denver, Colorado. decreased costs in the provision of new or expanded Applicant also proposes to establish an office of Bank correspondent banking services among Bank's memin San Francisco, California, which Applicant has ber depository institutions. Accordingly, factors relatcommitted will perform certain limited administrative ing to the convenience and needs of the community to functions and will not be a bank. be served are consistent with approval of this pro- In view of Applicant's commitment regarding the posal. conduct of Bank's activities at its San Francisco, Based on the foregoing and other facts of record, the California, administrative office, Applicant's proposal Board has determined that this application should be does not involve the acquisition of an additional and hereby is approved. This transaction shall not be "bank" located in California. consummated before the thirtieth calendar day follow- The Board notes that nonvoting nonconvertible pre- ing the effective date of this Order, or later than three ferred stock represents 99 percent of Organizers' total months after the effective date of this Order, unless equity investment in Bank. The proposal, therefore, such period is extended for good cause by the Board or also has been examined for its consistency with the the Federal Reserve Bank of Kansas City, acting Board's Policy Statement on Nonvoting Equity In- pursuant to delegated authority. vestments (the "Policy Statement") as well as prior By order of the Board of Governors, effective Board decisions involving nonvoting equity invest- June 12, 1984. ments.4 Applicant has committed that no bank or bank affiliate outside of the state of Colorado would own 25 Voting for this action: Chairman Volcker and Governors Partee, Rice, and Gramley. Absent and not voting: Governors Martin, Wallich, and Teeters. JAMES MCAFEE 2. Deposit data are as of June 30, 1983. [SEAL] Associate Secretary of the Board 3. Pub. L. No. 97-320, 96 Stat. 1469 (1982), as amended by, S.J. Res. 271, Pub. L. No. 97-457, 96 Stat. 2508 (1983) ("Garn-St Germain Act"). Preliminary charter approval for Bank was granted by the Comptroller on February 15, 1984. 4. 68 FEDERAL RESERVE BULLETIN 413 (1982); 12 C.F.R. § 225.143 (July 1982). See United Midwest Bancshares, Inc., 68 FEDERAL RESERVE BULLETIN 676 (1975); and Security Bancorp, Inc., 66 RESERVE BULLETIN 774 (1982); Valley View Bancshares, 61 FEDERAL FEDERAL RESERVE BULLETIN 977 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 589 Orders Issued Under Section 4 of the Bank EFT banking transactions, such as cash withdrawals, Holding Company Act funds transfers, balance inquiries, and point-of-sale ("POS") debit and credit transactions. Access to the CB&T Bancshares, Inc. Switch will be available to all federally insured deposi- Columbus, Georgia tory institutions located in Georgia. The Switch will enable the customers of each participating depository Bank South Corporation institution to access their account by using their insti- Citizens and Southern Georgia Corporation tution's proprietary access card at point-of-sale termi- First Atlanta Corporation nals and automated teller machines ("ATMs") located Atlanta, Georgia in shopping centers, grocery stores, office buildings and convenience stores throughout Georgia. These First Railroad & Banking Company of Georgia terminals will be owned, installed and operated not by Augusta, Georgia the Switch but by the participating financial institutions and by retailers and third parties that have Heritage Bancshares, Inc. and Trust Company contracted with participating institutions to provide of Georgia terminals to those institutions. Thus, the sole function Snellville, Georgia of the Switch will be to operate as a clearing facility for the banking transactions initiated at the ATMs and Order Approving Acquisition of Shares in Georgia POS terminals that are placed within the Switch sys- Interchange Network, Inc. tem. Customer transactions at these terminals will be passed through the terminal owner's computer to the CB&T Bancshares, Inc., Columbus, Georgia; Bank Switch, which will then route the messages to the South Corporation, Citizens and Southern Georgia cardholder's institution2 for processing. Corporation ("Citizens and Southern"), Trust Compa- The Switch will operate behind the participating ny of Georgia, and First Atlanta Corporation ("First institutions; that is, no terminals will be connected Atlanta"), all of Atlanta, Georgia; First Railroad & directly to the Switch. Instead, all terminals will be Banking Company of Georgia ("First Railroad"), Au- connected to computers of the participating institugusta, Georgia; and Heritage Bancshares Inc. ("Heri- tions or their designated processors (or to the computtage"), Snellville, Georgia, all bank holding companies ers of retailers and corporations that operate terminals within the meaning of the Bank Holding Company Act sponsored by participating institutions), which in turn ("BHC Act") (12 U.S.C. § 1841 et seq.), have applied will communicate with the Switch. Thus, the general for the Board's approval under section 4(c)(8) of the and technical operational objective of the Switch is to BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.23 provide for the central transmission of "non-on-us" of the Board's Regulation Y (12 C.F.R. § 225.23), each financial transaction messages (i.e., transactions initito acquire 8.33 percent of the voting shares of Georgia ated by a financial institution cardholder at a terminal Interchange Network, Inc. ("GIN"), Atlanta, Georowned or sponsored by another financial institution) gia, a joint venture to engage de novo in data process- between participating institutions.3 The participating ing and related activities.1 GIN will operate an elecinstitutions will respond directly to "on-us" transactronic funds transfer ("EFT") system for tions (i.e., transactions by their cardholder at their interchanging financial transactions tnroughout Georterminal) and will route only "non-on-us" transactions gia. The proposed interchange system ("the Switch") to the Switch. will operate as a neutral clearing house for customer These data processing and related activities have been determined by the Board to be closely related to banking and are permissible under section 225.25(b)(7) 1. With one exception, Applicants propose to acquire the shares of Regulation Y (12 C.F.R. § 225.25(b)(7)(i) and (ii)). directly. Heritage will acquire its shares indirectly through its subsid- Notice of these applications, affording opportunity for iary, Heritage Bank, Snellville, Georgia, a state-chartered nonmember bank. The remaining 8.33 percent owners of GIN are: Georgia Telco Credit Union, Atlanta, Georgia; DFS Services, Inc., a wholly owned subsidiary of Decatur Federal Savings and Loan Association, Decatur, Georgia; a wholly owned subsidiary of Fulton Federal Savings 2. The term "cardholder institution" refers to the institution whose and Loan Association, Atlanta, Georgia; and a wholly owned subsid- proprietary access card is used by its customers ("the cardholder") at iary of Georgia Federal Bank, F.S.B., Atlanta, Georgia. one of the terminals within the Switch system. Concurrent with these applications, the First National Bank of 3. In addition to transmitting financial transaction messages be- Cobb County, Marietta, Georgia, has applied pursuant to section 5(b) tween participating institutions, the Switch will perform the following of the Bank Service Corporation Act to acquire shares of a proposed incidental functions: monitoring and maintaining technical Switch bank service corporation which also will acquire 8.33 percent of the performance standards; assisting in the training and education of voting shares in the GIN Network. That application is the subject of a participants; producing and distributing timely reports to manageseparate Order issued today, which incorporates by reference the ment; and performing a daily settlement on all transactions passed terms of the instant Order. through the Switch. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

590 Federal Reserve Bulletin • July 1984 interested persons to submit comments and views, has The appropriate line of commerce for analyzing the been duly published. 49 Federal Register 13426 (April competitive effects of consummation of this proposal 4, 1984). The time for filing comments and views has is the provision for unaffiliated financial institutions of expired and the Board has considered the applications data processing services. Inasmuch as the proposed and all comments received in light of the factors set venture is to commence de novo, no existing competiforth in section 4(c)(8) of the BHC Act, 12 U.S.C. tion among the co-venturers in operating an inter- § 1843(c)(8). change system would be eliminated. Each of the co-venturers currently engages either The Board also has considered the effects of condirectly or indirectly, through a subsidiary or affiliate, summation of this proposal on probable future compein data processing and data transmission activities, tition, particularly as these applications utilize a joint including the operation of proprietary ATM networks. venture to engage in the relevant activities, and the co- The proprietary ATM networks operated directly or venturers are some of the largest financial institutions indirectly by the co-venturers provide services for the in Georgia. The GIN group comprises 12 financial co-venturers' affiliated banks. Two of the co-ventur- organizations. They include the six largest, and the ers, Citizens and Southern and First Railroad, current- ninth and sixteenth largest banking organizations in ly operate indirectly proprietary ATM systems for Georgia, the state's three largest thrift institutions, and non-affiliated as well as affiliated institutions. Another one of the state's largest credit unions. It does not co-venturer, First Atlanta, provides ATM services at appear likely, however, that the individual venturers four Atlanta, Georgia offices of a large corporation. An would expand an existing ATM/POS network on a additional co-venturer, Heritage Bank, is affiliated statewide basis, or establish individually a statewide with a data processing subsidiary through their com- EFT Switch, in view of the substantial capital costs mon bank holding company. The subsidiary provides and the necessity for a high volume of transactions for complete data processing services (including the pro- cost-effective operation that such a venture would cessing of ATM transactions) for 27 banks. Unlike entail. Nor would the limited cardholder base and the GIN, the function of these proprietary networks, and limited accessibility of an individual institution's EFT the proprietary networks of the other co-venturers, is system likely be sufficiently attractive to potential not limited to interchanging transactions: they also outside participants (depository institutions, retailers) issue cards and provide directly support terminals. so as to place their own ATM/POS terminals within an Because the Switch will only interchange "non-on-us" individual system. transactions, the individual co-venturers (either direct- Moreover, the market for such data processing ly or through their subsidiaries or affiliates) will contin- activities is not regarded as concentrated. The record ue to operate their own proprietary ATM networks reflects that there are presently numerous statewide, while participating in the Switch's shared interchange regional, and national shared ATM/POS systems in system. Georgia, all in various stages of development. Several The GIN Switch will not own or operate any ATM of the co-venturers currently share ownership or paror POS terminals. Because of the limited interchange ticipate in one or more of these shared systems. The functions of the Switch, each terminal owner and existence of these current (and other potential) ensponsor and each cardholder institution will price its trants mitigates concerns that the GIN interchange services to merchants, cardholders, or third parties as system may represent so large a proportion of possible it deems appropriate. ATM/POS facilities in local markets that no competing Any federally insured depository institution located networks could exist. Additionally, the membership in Georgia may use the Switch's interchange service contract that is proposed for GIN-participating instituby joining the Switch.4 Participants will pay a one-time tions provides a term of only three years and does not initiation fee, an annual membership fee, and certain restrict the ability to participate in other such shared transaction fees for services performed by the Switch. systems.5 In this light, the loss of these potential As indicated above, all existing proprietary ATM systems of participating financial institutions will continue to operate; GIN will merely interface among those systems. 5. Each of the member financial institutions is free to join other shared networks or switches; thus, each has the flexibility to compete by offering its customers access to as many ATM/POS terminals as it chooses. In addition, each member has sole discretion over the decision where to locate its ATM/POS terminals, thereby preserving its ability to develop a system most convenient for its customers. 4. All federally insured Georgia depository institutions (or their Finally, while there are some minimum standards on the types and affiliates) also were afforded an opportunity to share ownership of the numbers of transactions that can be offered within the GIN inter- Switch. Hence, both equity and nonequity participation in the Switch change, these seem consistent with the inherent technological conwas made available. straints of linking together ATM or POS terminals. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 591 entrants into the market for data processing services work interchange. Further, the economies of scale that does not raise any serious concern. Accordingly, the would result from operation of the combined network Board concludes that consummation of the proposed would accrue to all participating institutions. Finally, joint venture would not have any significantly adverse the joint venture would enable Applicants to share the effects upon probable future competition. After careful cost of expanding and improving EFT services and review of the application and other facts of record, the would ensure greater availability of funds for product Board also concludes that no evidence exists upon research and development. which to conclude that consummation of the proposal There is no evidence in the record in this case would result in unfair competition, conflicts of interest indicating that consummation of the present proposal or unsound banking practices.6 would result in undue concentration of resources, The Board has also considered the effect of consum- unfair competition, conflicts of interests, unsound mation of this proposal in light of state and federal banking practices or other adverse effects. Based upon laws governing the establishment of branches and the the foregoing and other facts of record, the Board use of ATM/POS terminals in a network. As described concludes that the balance of public interest factors it above, the GIN Switch would only provide data must consider under section 4(c)(8) favors approval of processing services for the interchange and would these applications. In addition, the financial and mananeither own nor provide ATM/POS terminals. More- gerial resources and future prospects of Applicants are over, membership in the interchange is not restricted considered consistent with approval. and Applicants have stated that the institutional partic- Accordingly, the Board concludes that approval of ipants in the interchange would comply with all appli- these applications is in the public interest and has cable federal or state branching laws and other statutes determined that the applications should be approved. regarding the establishment and use of ATM/POS This determination is subject to the conditions set terminals in a network.7 Applicants further have com- forth in Regulation Y, including sections 225.4(d) and mitted to offer through the interchange only those 225.23(b)(3), and to the Board's authority to require transactional services legally available to ATM/POS such modification or termination of the activities of a customers of participating financial institutions under bank holding company or its subsidiaries as the Board applicable federal and Georgia laws. finds necessary to assure compliance with the provi- It is the Board's view that approval of these applica- sions and purposes of the Act and the Board's regulations can reasonably be expected to produce benefits tions and orders issued thereunder or to prevent to the public. Consummation of this proposal would evasion thereof. allow individuals in Georgia access to a larger number Consummation of this transaction shall not be made of ATM/POS terminals. In addition, the GIN Switch later than three months after the effective date of this would introduce to Georgia a new provider of data Order, unless such period is extended for good cause processing services and an alternative ATM/POS net- by the Board or by the Federal Reserve Bank of Atlanta pursuant to delegated authority. By order of the Board of Governors, effective June 25, 1984. 6. Applicants have committed that the transaction and other fees charged by the Switch will be nondiscriminatory and will relate solely to the interchange services that it provides. As noted above, participa- Voting for this action: Vice Chairman Martin and Govertion in the Switch is open to all federally insured Georgia depository nors Partee and Rice. Present and not voting: Governors institutions. Teeters and Gramley. Absent and not voting: Chairman 7. In that regard, the proposed data processing and transmission Volcker and Governor Wallich. activities are permissible under the corporate laws of the state of Georgia. Section 7-l-603(b)(4) of the Official Code of Georgia, Ga. JAMES MCAFEE Code Ann. § 7-l-603(b)(4) (1982), permits banks to operate ATMs or [SEAL] Associate Secretary of the Board POS terminals individually or jointly on a cost-sharing basis with two or more other financial institutions. Section 7-1-603, in turn, is made applicable to national banks and all other persons, corporations, or associations engaged in the business of banking by Ga. Code Ann. § 7- Citicorp 1-600(1). Under Section 7-1-603, such ATM/POS "facilities" are not deemed to be additional offices or facilities of a bank for purposes of New York, New York Georgia branch banking laws (which generally prohibit branching except on a county-wide basis), so long as they are maintained within a county in which the sponsoring financial institution is otherwise Order Approving Application to Execute and authorized to operate. In order to clarify under Georgia law whether a Clear Certain Options Contracts Georgia financial institution may be linked with another financial institution's ATM/POS terminal in a county where it could not otherwise own or lease an ATM, the Federal Reserve Bank of Atlanta Citicorp, New York, New York, a bank holding comrequested the opinion of the Georgia Department of Banking and pany within the meaning of the Bank Holding Compa- Finance in this matter. The written response of the Deputy Commissioner of that Department makes apparent that the proposed activities ny Act, 12 U.S.C. § 1841 et seq. ("BHC Act"), has of the GIN group comply with Georgia branching law. applied pursuant to section 4(c)(8) of the BHC Act and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

592 Federal Reserve Bulletin • July 1984 section 225.21(a) of the Board's Regulation Y, 49 and Exchange Commission ("SEC") in order to exe- Federal Register 794 (1984) (to be codified at 12 cute and clear options on foreign exchange, U.S. C.F.R. § 225.21(a)), to engage de novo through its government securities and money market instruments wholly owned subsidiary, Citicorp Futures Corpora- on authorized stock exchanges. The Board has prevition ("CFC"), in executing and clearing options on ously approved by order the activity of executing and bullion, foreign exchange, U.S. government securities clearing these SEC-regulated options.4 Applicant's and money market instruments, and options on futures proposal to execute and clear such options is substanin these commodities and instruments. Citicorp also tially similar to proposals previously approved by the has applied for the Board's approval to provide advis- Board, and Applicant's prior experience in the cash ory services in connection with some of the proposed and forward markets for these financial physicals options activities. indicates that CFC would have the expertise to pro- Notice of the application, affording interested per- vide the proposed options services. Accordingly, the sons an opportunity to submit comments on the rela- Board concludes that the execution and clearance of tion of the proposed activity to banking and on the these SEC-regulated options, in the manner proposed, balance of the public interest factors regarding the is closely related to banking. application, has been duly published, 48 Federal Reg- In addition, Applicant proposes to execute and clear ister 51372 (1983). The time for filing comments has CFTC-regulated options on bullion and foreign exexpired and the Board has considered the application change on authorized commodity exchanges, activities and all comments received in light of the public which have not been authorized previously. In order interest factors set forth in section 4(c)(8) of the BHC to approve an application to engage in new activities Act. pursuant to section 4(c)(8) of the BHC Act, the Board Applicant, with consolidated assets of $142 billion1 is first required to determine that the proposed activity is the largest banking organization in the United is closely related to banking or managing or controlling States. Citicorp controls four subsidiary banks—two banks. in New York, one in South Dakota and one in Dela- The Board has previously determined that the broware—with, aggregate deposits of $78.9 billion.2 kering of futures and options on futures in bullion and Applicant, directly and through certain of its subsidiar- foreign exchange is a permissible nonbanking activiies, engages in a broad range of permissible nonbank- ty.5 In addition, the Board has concluded that options ing activities throughout the United States. The capi- on physicals serve essentially the same function as talization of CFC is adequate to permit it to engage in futures and options on futures, and that the brokering the proposed nonbanking activities. of options on certain physicals, i.e., U.S. government Applicant proposes to engage through CFC in acting securities, money market instruments and options on as a futures commission merchant ("FCM") regis- foreign currency regulated by the SEC, is closely tered with the Commodity Futures Trading Commis- related to banking.6 The proposed CFTC- and SECsion ("CFTC") in order to execute and clear options regulated options on physicals are functionally and on futures in bullion, foreign exchange, U.S. govern- operationally comparable devices for hedging investment securities and money market instruments on ment portfolio risk. Therefore, the Board has deterestablished commodity exchanges.3 These FCM activ- mined that Applicant's proposal to execute and clear ities are permissible for bank holding companies under options on bullion and foreign currency is substantially section 225.25(b)(18) of the Board's Regulation Y, similar to proposals to engage in options activities subject to the conditions set forth therein. previously approved by the Board. Applicant also proposes to engage through CFC in Moreover, the record indicates that Applicant has acting as a broker-dealer registered with the Securities been active in the cash and forward markets for bullion and foreign currency and has the expertise to provide the proposed services to customers. Accordingly, the Board concludes that, in the manner proposed, and 1. As of March 31, 1984. 2. As of June 30, 1983. The Board recently approved Applicant's proposal to acquire a subsidiary bank in Maryland. Citicorp, 70 FEDERAL RESERVE BULLETIN 591 (Order dated April 30, 1984). 3. Under an accord between the SEC and the CFTC adopted by 4. Fidelcor, Inc., 70 FEDERAL RESERVE BULLETIN 368 (1984) Congress (Pub. L. No. 97-444, 96 Stat. 2294, 7 U.S.C. § 2(a) (1982) (SEC-regulated options on foreign exchange); Security Pacific Corpoand Pub. L. No. 97-303, 96 Stat. 1409, 15 U.S.C. § 77b (1982)), the ration, 70 FEDERAL RESERVE BULLETIN 53 (1984) (SEC-regulated SEC has exclusive jurisdiction over options on U.S. government options on U.S. government securities and money market instrusecurities and money market instruments. The CFTC has overlapping ments). jurisdiction with the SEC over options on foreign currency and has 5. Section 225.25(b)(18) of Regulation Y. exclusive jurisdiction over options on bullion and on futures. 6. See note 4, supra. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 593 subject to the conditions set forth in section Based upon a consideration of all the relevant facts, 225.25(b)(18) of Regulation Y for futures and options the Board concludes that the balance of the public on futures, Applicant's proposal to execute and clear interest factors it is required to consider under section options on bullion and foreign exchange is closely 4(c)(8) is favorable. Accordingly, the application is related to banking. hereby approved. This determination is subject to all With respect to the above-referenced CFTC-regulat- of the conditions set forth in Regulation Y, including ed options, Applicant also proposes to provide invest- sections 225.4(d) and 225.23(b), and to the Board's ment advisory services consisting of general research authority to require such modification or termination and advice on market conditions and trading strate- of the activities of a bank holding company or any of gies, client account information and reconciliation of its subsidiaries as the Board finds necessary to assure trades, and communication linkage between clients compliance with the provisions and purposes of the and commodity exchange floors in connection with Act and the Board's regulations and orders issued proposed FCM activities. These services would be thereunder, or to prevent evasion thereof. offered to customers as an integrated package of The transaction shall be made not later than three services on a nonfee basis. The Board has previously months after the effective date of this Order, unless determined that the provision of investment advice on such period is extended for good cause by the Board or this basis is incidental to FCM activities.7 Although by the Federal Reserve Bank of New York pursuant to the Board has expressed some doubt with regard to the delegated authority. continuing applicability of this precedent, the Board By order of the Board of Governors, effective also has determined that the provision of investment June 5, 1984. advice in connection with FCM activities is closely related to banking.8 Accordingly, the Board has deter- Voting for this action: Governors Partee, Teeters, Rice, mined that FCM investment advisory services, con- and Gramley. Absent and not voting: Chairman Volcker and ducted in the manner proposed, may be approved. Governors Martin and Wallich. In order to approve this application, the Board is also required to determine that the performance of the JAMES MCAFEE proposed activities by Applicant "can reasonably be [SEAL] Associate Secretary of the Board expected to produce benefits to the public . . . that outweigh possible adverse effects . . . . " (12 U.S.C. § 1843(c)(8)). Consummation of Applicant's proposal Old Stone Corporation would provide added convenience to those clients of Providence, Rhode Island Applicant and its subsidiaries that trade in the cash, forward and futures markets for these instruments. Statement By Board of Governors of the The Board expects that the de novo entry of Applicant Federal Reserve System Regarding the Application into the market for these services would increase the of Old Stone Corporation to Acquire First Federal level of competition among providers of these services Savings and Loan Association of Catawba County already in operation. Accordingly, the Board concludes that the performance of the proposed activities By Order dated June 5, 1984, the Board denied the by Applicant can reasonably be expected to produce application of Old Stone Corporation, Providence, benefits to the public. Rhode Island, pursuant to section 4(c)(8) of the Bank The Board also has considered the potential for Holding Company Act, (12 U.S.C. § 1843(c)(8)) adverse effects that may be associated with this pro- ("BHC Act"), to acquire First Federal Savings and posal. In particular, the Board has taken into account Loan Association of Catawba County, Conover, and has relied on the regulatory framework established North Carolina.1 In this Statement, the Board sets pursuant to law by the SEC and the CFTC for the forth its reasons for denying the application. trading of options, as well as the conditions set forth in Applicant is a bank holding company by virtue of its section 225.25(b)(18) of Regulation Y with respect to control of Old Stone Bank, Providence, Rhode Island, executing and clearing futures and options on futures. 1. In decisions involving applications previously considered under 7. Security Pacific, 70 FEDERAL RESERVE BULLETIN 53, 55 (1984); section 4(c)(8) of the BHC Act, the Board determined that the Citicorp, 68 FEDERAL RESERVE BULLETIN 776, 778 (1982). operation of a savings and loan association is closely related to 8. Manufacturers Hanover Corporation, 70 FEDERAL RESERVE banking. E.g., D.H. Baldwin Company, 63 FEDERAL RESERVE BUL- BULLETIN 369 (1984). LETIN 280 (1977). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

594 Federal Reserve Bulletin • July 1984 which operates 27 banking offices throughout Rhode would outweigh the generalized adverse effects of the Island and controls $1.4 billion in deposits.2 Applicant affiliation of a bank and a thrift institution. also operates industrial banking, consumer finance, Because the acquisition of Catawba is intended to and mortgage banking subsidiaries, and one savings strengthen Perpetual, Applicant claims that the proand loan association that is located in North Carolina. posed acquisition is consistent with the policy underly- The Board approved Applicant's acquisition of that ing the emergency thrift acquisition provisions of the thrift subsidiary, Perpetual Savings & Loan Associa- Garn-St Germain Act. Applicant states that acquisition, High Point, North Carolina ("Perpetual"), on tion of Catawba would provide Perpetual with FSLIC September 7, 1983.3 Perpetual operates seven offices deposit insurance necessary to Perpetual's continued in western North Carolina and controls $180.8 million viability. FSLIC insurance, however, is available to in deposits. At the time of its acquisition, Perpetual Perpetual even absent this acquisition by direct appliwas a financially troubled, state-chartered and state- cation to the FSLIC. Applicant further states that the insured thrift institution. In order to ensure that Per- acquisition would provide Perpetual with Catawba's petual would not be considered a bank under the BHC management expertise, expertise that Applicant main- Act, Applicant committed that Perpetual would secure tains it cannot itself provide. When Applicant applied FSLIC insurance.4 to acquire Perpetual, however, it asserted that it had Catawba is a small ($50 million in deposits), federal- the financial and managerial resources necessary to ly chartered and FSLIC-insured association which restore Perpetual to competitive vitality. This asseroperates three offices in western North Carolina. tion was an essential part of the basis for the Board's Applicant plans to acquire Catawba and immediately approval of the Perpetual acquisition. In this context, have Perpetual merge with Catawba. Because Cataw- the Board does not favor a subsequent application to ba is not a failing institution, the Board could not acquire a healthy thrift merely to facilitate the operaapprove this application under the emergency thrift tion of Perpetual or to support it with the managerial acquisition provisions of the Garn-St Germain Act. resources its parent claimed it could independently Instead, the Board must consider this proposal in light provide; this is particularly true in a situation in which of the Board's general authority to approve bank the Board must find positive public benefits to overholding company acquisitions of nonbanking compa- come the adverse effects the Board has found continue nies under section 4(c)(8) of the BHC Act. to apply in the case of bank holding company acquisi- In construing its general authority regarding thrift tions of thrifts. acquisitions, the Board has reaffirmed its determina- In addition, Applicant presents a technical argument tion made in D.H. Baldwin Company that in most in support of this application. Applicant maintains instances the generalized adverse effects of the affili- that, had Perpetual been acquired under the emergenation between banks and thrift institutions outweigh cy provisions of the Garn-St Germain Act, this acquiany public benefits that might be present in a particular sition would be permissible under the provision in transaction.5 Moreover, it is implicit in the Garn-St section 123 of that Act that permits an acquired thrift Germain Act, which permits only the acquisition of to branch, subject to the restrictions on branching failing thrift institutions by bank holding companies, applicable to national banks located in the state. that there are some adverse effects associated with the Applicant argues that since national banks in North acquisition of healthy thrifts.6 As noted, Catawba is Carolina may branch by merger, and not merely by not a failing institution, and the record contains no establishing de novo branches, the proposed acquisievidence of any other compelling public benefits that tion should be viewed as an expansion of Perpetual permissible under the Garn-St Germain Act.7 7. Section 123(a)(5)(A) of the Garn-St Germain Act provides: 2. All banking data are as of December 31, 1983. 3. 69 FEDERAL RESERVE BULLETIN 812 (1983). Where a merger, consolidation, transfer, or acquisition under this subsection 4. As a result of the Garn-St Germain Act, the definition of the involves an insured institution eligible for assistance and a bank or bank holding term bank contained in section 2(c) of the BHC Act excludes FSLIC- company, an insured institution may retain and operate any existing branch or branches or any other existing facilities but otherwise shall be subject to the insured thrifts. conditions upon which a national bank may establish and operate branches in the 5. Citicorp (Fidelity Federal), 68 FEDERAL RESERVE BULLETIN 656 State in which such insured institution is located. (1982); Interstate Financial Corp. (Scioto) 68 FEDERAL RESERVE BULLETIN 316 (1982). See also, Citicorp (First Federal), 70 FEDERAL The language and structure of this provision, however, demonstrate RESERVE BULLETIN 149, 152-53 (1984) (analysis of D.H. Baldwin that it is a limiting provision rather than a permissive one, which does precedent in context of acquisition under Garn-St Germain Act). not by its terms authorize the acquisition of a healthy thrift, and 6. These provisions of the Garn-St Germain Act expire on October speaks only to branching and not to expansion by merger. This 15, 1985, and would thereafter have no impact on the Board's general proposal involves a merger of S&Ls — thereby eliminating a thrift authority under section 4(c)(8) to authorize thrift acquisitions where institution from the marketplace — and not merely the establishment the net public benefits of a particular proposal are positive. or acquisition of branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 595 Perpetual, however, was not acquired by Applicant Holding Company Act ("Act"), has applied for the under the Garn-St Germain Act, and therefore the Board's approval under section 3 of the Act (12 U.S.C. branching provision of that Act is not applicable to this § 1842) to merge with Southwest Bancshares, Inc., acquisition. In addition, Applicant offers no compel- Houston, Texas ("Southwest").1 As a result of the ling public benefits resulting from this acquisition that proposed transaction, Applicant would acquire indiwould cause the Board to apply the Garn-St Germain rectly Southwest's 37 subsidiary banks. The resulting Act by analogy. The Board also noted that there was a organization would operate under the charter of Merreasonable argument that it is unlikely that Congress cantile Texas Corporation and would be known as intended under this provision to permit bank holding Mercantile Southwest Corporation. companies to expand their presence in the thrift indus- Applicant has also applied for the Board's approval try through merger with healthy thrift institutions.8 under section 4(c)(8) of the Act (12 U.S.C. Finally as noted above, the Board believes that the § 1843(c)(8)) and section 225.23(a)(2) of the Board's benefits that might accrue to Applicant through this Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire proposed affiliation—acquisition of FSLIC deposit in- Southwest Bancshares Life Insurance Company, surance and Catawba's management expertise—are Houston, Texas ("Southwest Bancshares Life"), a available to Applicant through other means. Conse- company engaged in the underwriting of credit life and quently, the Board finds that the public benefits asso- credit accident and health insurance directly related to ciated with this proposal do not outweigh the general- extensions of credit by subsidiaries of Southwest. This ized adverse effects that the Board determined in D.H. activity has been determined by the Board to be Baldwin were associated with the affiliation of banks closely related to banking and permissible for bank and thrift institutions. Accordingly, on the basis of all holding companies (12 C.F.R. § 225.25(b)(9)) and this the facts of record, the application is hereby denied. determination has not been affected by the recent Board of Governors of the Federal Reserve System, amendments to section 4(c)(8) of the Act limiting the June 5, 1984. permissible insurance activities of bank holding companies.2 Voting for this action: Governors Partee, Teeters, Rice, Notice of the applications, affording opportunity for and Gramley. Absent and not voting: Chairman Volcker and interested persons to submit comments and views, has Governors Martin and Wallich. been given in accordance with sections 3 and 4 of the Act (49 Federal Register 935 (1984)). The time for JAMES MCAFEE filing comments and views has expired, and the Board [SEAL] Associate Secretary of the Board has considered the applications and all comments received in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)) and the considerations Orders Issued Under Sections 3 and 4 of the specified in section 4(c)(8) of the Act. Bank Holding Company Act Applicant is the fifth largest banking organization in Texas, with 29 subsidiary banks that control aggregate Mercantile Texas Corporation domestic deposits of $7.0 billion,3 representing 6.1 Dallas, Texas percent of the total deposits in commercial banks in the state. Southwest is the seventh largest banking Order Approving Merger of Bank Holding organization in the state, with 37 subsidiary banks that Companies and Acquisition of a Company Engaged control aggregate domestic deposits of $5.5 billion, in the Underwriting of Credit-Related Insurance Mercantile Texas Corporation, Dallas, Texas, a bank holding company within the meaning of the Bank 1. Applicant has also applied under section 3(a)(1) of the Act (12 U.S.C. § 1842(a)(1)) for approval of the acquisition by its whollyowned inactive subsidiary, Mercantile Southwest Financial Corporation ("MSFC"), of the banking subsidiaries of Southwest and Applicant. MSFC will hold directly all of the banking subsidiaries of the resulting organization. 8. Such expansion could well be considered to be inconsistent with 2. See Garn-St Germain Depository Institutions Act of 1982, Pub. the entire scheme of the emergency thrift acquisition provisions of the L. No. 97-320, § 601, 96 Stat. 1469, 1536-38 (1982). Garn-St Germain Act if an initial acquisition of a failing thrift were 3. Unless otherwise indicated, deposit data are of June 30, 1983, used as a vehicle for the subsequent acquisition of a healthy thrift. and reflect bank holding company formations and acquisitions ap- These provisions were constructed to allow banking organizations to proved through April 16, 1984. Statewide deposit data also reflect acquire thrifts only if the thrifts were failing, and even then, only as a Southwest's divestiture, on March 30, 1984, of The Mercantile last resort if no other thrift was prepared to make the acquisition. National Bank of Corpus Christi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin • July 1984 representing 4.5 percent of the total deposits in com- The Dallas banking market is considered moderately mercial banks in the state. Upon consummation of the concentrated, with the four largest banking organizaproposed acquisition, Applicant's share of the total tions controlling 66.2 percent of the total deposits in deposits in commercial banks in the state would in- commercial banks and a Herfindahl-Hirschman Index crease to 10.6 percent and Applicant would become ("HHI") of 1400. Upon consummation of this proposthe second largest banking organization in Texas. al, the four-firm concentration ratio would increase to Although the Board is concerned about the effect of 69.5 percent and the HHI would increase 74 points to this merger of the fifth and seventh largest banking 1474.5 organizations in Texas on the concentration of banking Southwest is the fourth largest of 103 commercial resources within the state, a number of factors mitigate banking organizations in the Houston banking market6 that concern. Upon consummation of this proposal, with $2.8 billion in deposits, representing 8.7 percent there would remain a number of other large multibank of the total deposits in commercial banks in the holding companies, which are active competitors market. Applicant is the seventh largest commercial throughout the state. In addition, the share of deposits banking organization in the market with $1.0 billion in held by the four largest banking organizations in Texas deposits, representing 3.2 percent of the total deposits would increase from 39.3 percent to only 41 percent in commercial banks in the market. Upon consummaupon consummation of the proposed merger, and in tion of the proposed transaction, Applicant would terms of concentration of deposits in commercial become the fourth largest banking organization in the banks, Texas would remain moderately concentrated. Houston market, with a market share of approximate- Accordingly, it is the Board's view that the proposed ly 11.9 percent of the total deposits in commercial acquisition would not have a significantly adverse banks in the market. effect on the concentration of banking resources in The Houston banking market is only moderately Texas. concentrated, with a four-firm concentration ratio of Subsidiary banks of Applicant compete directly with 60.5 percent and a pre-merger HHI of 1104. Upon subsidiary banks of Southwest in three banking mar- consummation of the proposed transaction, the fourkets: the Dallas, Houston, and San Antonio markets. firm concentration ratio would increase to 63.7 percent On March 30, 1984, Southwest sold its only bank in the and the HHI to 1159. Corpus Christi banking market, The Mercantile Na- Applicant is the fourth largest commercial banking tional Bank of Corpus Christi. As a result of this organization in the San Antonio banking market7 with divestiture, consummation of this proposal would not $518.4 million in deposits, representing 8.4 percent of eliminate existing competition between Applicant and the total deposits in commercial banks in the market. Southwest in the Corpus Christi banking market. Southwest is the ninth largest commercial banking Applicant is the third largest of 109 commercial organization in the San Antonio market with $112.3 banking organizations in the Dallas banking market4 million in deposits, representing 1.8 percent of the with $2.96 billion in deposits therein, representing 11.2 total deposits in commercial banks in the market. percent of the total deposits in commercial banks in Upon consummation of the proposed merger, Applithe market. Southwest is the seventh largest commer- cant would remain the fourth largest commercial bankcial banking organization in the Dallas banking market ing organization in the San Antonio banking market with $864.7 million in deposits, representing 3.3 per- and would hold approximately 10.2 percent of the total cent of the total deposits in commercial banks in the deposits in commercial banks in the market. market. Upon consummation of the proposed transac- The San Antonio market is only moderately concention, Applicant would remain the third largest banking trated, with a four-firm concentration ratio of 62.6 organization in the Dallas market, and would hold percent and a pre-merger HHI of 1226. Upon consumapproximately 14.5 percent of the total deposits in mation of the proposed transaction, the four-firm commercial banks in that market. 5. Under the Department of Justice's Merger Guidelines, a market in which the post-merger HHI is between 1000 and 1800 is considered 4. The Dallas banking market is approximated by Dallas County, moderately concentrated. In such markets, the Department of Justice the southeast quadrant of Denton County (including Denton and is unlikely to challenge a merger that produces an increase in the HHI Lewisville), the southwest quadrant of Collin County (including of less than 100 points. McKinney and Piano), the northern half of Rockwall County, the 6. The Houston banking market is approximated by the Houston communities of Forney and Terrell in Kaufman County, Midlothian, Ranally Metropolitan Area. Waxahatchie, and Ferris in Ellis County, and Grapevine and Arling- 7. The San Antonio banking market is approximated by the San ton in Tarrant County. Antonio Ranally Metropolitan Area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 597 concentration ratio would increase to 64.4 percent and eight markets (as well as to seven of the ten markets the HHI would increase by only 30 points, to 1256. that are not highly concentrated), there are numerous Based on all of the facts of record, including the other probable future entrants into each market. On small increase in concentration in the Dallas, Houston, the basis of these and other facts of record, the Board and San Antonio banking markets and the number and concludes that consummation of this proposal would size of the remaining banking competitors in each of not have any significant adverse effects on probable the markets, the Board concludes that consummation future competition in any relevant market. of the proposed transaction would not have a signifi- The Board has stated and continues to believe that cantly adverse effect on competition in the three capital adequacy is an especially important factor in markets in which subsidiary banks of Applicant com- the analysis of bank holding company expansion propete with Southwest's subsidiary banks. posals, particularly where significant acquisitions are There are 19 markets in Texas in which only one of proposed. In this case, the financial and managerial the two holding companies competes.8 The Board has resources of Applicant, Southwest, and their subsidconsidered the effects of this proposal on probable iaries are consistent with approval, and their prospects future competition in these geographic markets and appear favorable. The Board notes that, because this has also examined the proposal in light of its proposed transaction would be accomplished through an exguidelines for assessing the competitive effects of change of shares, it would not have any significant market-extension mergers or acquisitions.9 In evaluat- adverse effect on Applicant's financial resources. Coning the effects of a proposed merger or acquisition siderations relating to the convenience and needs of upon probable future competition, the Board consid- the communities to be served are also consistent with ers market concentration, the number of probable approval of the application. future entrants into the market, the size and market Applicant has also applied, pursuant to section position of the firm to be acquired, and the attractive- 4(c)(8) of the Act, to acquire Southwest's nonbanking ness of the market for de novo or foothold entry. subsidiary, Southwest Bancshares Life, through In view of the fact that Southwest had established a which Applicant proposes to engage in the underwritbanking subsidiary in the Corpus Christi banking mar- ing of credit life and credit accident and health insurket which it sold in anticipation of this transaction, the ance directly related to extensions of credit by the Board believes that Southwest would be a probable banking subsidiaries acquired by Applicant from future entrant into the Corpus Christi market absent Southwest. This activity is authorized for bank holding approval of this proposal. However, the Corpus Chris- companies by section 225.25(b)(9) of Regulation Y ti banking market is not highly concentrated, as indi- (12 C.F.R. § 225.25(b)(9)).11 cated by a three-firm concentration ratio of 57.5 per- There is no evidence in the record to indicate that cent, and there is no indication that the market is not approval of the proposed acquisition of Southwest competitive. Thus, the Board does not view the elimi- Bancshares Life would result in undue concentration nation of Southwest as a probable future entrant into of resources, decreased or unfair competition, conthe Corpus Christi market as having a substantial flicts of interests, unsound banking practices, or other adverse effect on probable future competition in the adverse effects. Accordingly, the Board has determarket. mined that the balance of the public interest factors it Of the 18 other markets in which either Applicant or must consider under section 4(c)(8) of the Act is Southwest, but not the other, competes, ten are not favorable and consistent with approval of the applicahighly concentrated.10 With respect to the remaining tion to acquire Southwest Bancshares Life. 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 8. The ten markets in which only Applicant operates are: Abilene, Austin, Comal County, Corpus Christi, El Paso, Hunt County, Navarro County, Sherman-Denison, Waco, and Wichita Falls. The nine markets in which only Southwest operates are: Beaumont-Port Arthur, Brownsville, Fort Worth, Harlingen, Longview, Marshall, Odessa, Orange, and Washington County. 11. Regulation Y currently requires that an applicant must offer 9. 47 Federal Register 9017 (March 3,1982). Although the proposed premium rate reductions or equivalent public benefits in order to policy statement setting forth these guidelines has not been adopted engage in insurance underwriting activities. 12 C.F.R. § 225.25(b)(9) by the Board, the Board is using the policy guidelines in its analysis of n.7. Applicant has committed to offer the required rate reductions. the effects of a proposal on probable future competition. The Board notes, however, that it has proposed an amendment to 10. The United States Supreme Court has stated that "the potential Regulation Y that would eliminate the rate reduction requirement competition doctrine has meaning only as applied to concentrated from its regulations concerning this activity. 48 Federal Register markets." United States v. Marine Bancorporation, 418 U.S. 602,630 53125 (November 25, 1983). Any final action taken by the Board with (1974). respect to this rule would be applicable to Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin • July 1984 approved. The merger shall not be consummated Board finds necessary to assure compliance with the before the thirtieth calendar day following the effective provisions and purposes of the Act and the Board's date of this Order and neither the merger nor the regulations and orders issued thereunder, or to preacquisition of Southwest's nonbanking subsidiary vent evasion thereof. shall occur later than three months after the effective By order of the Board of Governors, effective date of this Order, unless such period is extended for June 4, 1984. good cause by the Board or by the Federal Reserve Bank of Dallas, pursuant to delegated authority. The Voting for this action: Governors Partee, Teeters, Rice, approval of Applicant's proposal to acquire South- and Gramley. Governor Teeters abstained from voting on the west's nonbanking subsidiary is subject to the condi- insurance portion of these applications. Absent and not voting: Chairman Volcker and Governors Martin and tions set forth in Regulation Y, including sections Wallich. 225.4(d) and 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), and to the Board's authority to require such modification or termination of the activities of a JAMES MCAFEE holding company or any of its subsidiaries as the [SEAL] Associate Secretary of the Board Legal Developments continued on next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 599 ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During June 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 (effective date) Royal Bank Group, Inc. National Bank of Royal Oak June 26, 1984 Royal Oak, Michigan Royal Oak, Michigan Section 4 Effective Applicant Bank ^ First Security Corporation Mission Bay Mortgage Company June 25, 1984 Salt Lake City, Utah San Diego, California 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 Alaska Continental Bancorp Alaska Continental Bank San Francisco June 18, 1984 Anchorage, Alaska Anchorage, Alaska American Bank Holding Corpo- American National Bank Dallas June 22, 1984 ration Corpus Christi, Texas Corpus Christi, Texas American Bankshares, Inc. First Clark National Bank Richmond June 6, 1984 War, West Virginia Northfork, West Virginia Amoskeag Bank Shares, Inc. Bank Meridian, N.A. Boston June 8, 1984 Manchester, New Hampshire Hampton, New Hampshire Arvada Bankshares, Ltd. The First National Bank of Kansas City June 22, 1984 Denver, Colorodo Arvada Arvada, Colorodo Assumption Bancshares, Inc. Assumption Bank & Trust Atlanta June 18, 1984 Napoleonville, Louisiana Company Napoleonville, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin • July 1984 Section 3—Continued ,. „ ,, . Reserve Effective AApplicant Bank(s) . Bank date Atlanta Bancorp, Inc. The Atlanta National Bank Dallas June 14, 1984 Atlanta, Texas Atlanta, Texas Auburn National Bancorpora- Auburn National Bank of Auburn Atlanta May 31, 1984 tion Auburn, Alabama Auburn, Alabama Beverly National Corporation The Beverly National Bank Boston May 29, 1984 Beverly, Massachusetts Beverly, Massachusetts Cashmere Valley Bancshares, Columbia Valley Bank San Francisco May 30, 1984 Inc. East Wenatchee, Washington Cashmere, Washington Cashmere Valley Bank Cashmere, Washington Central Fidelity Banks, Inc. The Bank of Christiansburg Richmond June 12, 1984 Richmond, Virginia Christiansburg, Virginia Central Illinois Financial Corpo- The Champaign National Bank Chicago June 15, 1984 ration Champaign, Illinois Champaign, Illinios Market Place National Bank Champaign, Illinois Citizens Bancorporation North Side Bancorp, Inc. Chicago June 5, 1984 Sheboygan, Wisconsin Racine, Wisconsin Citizens Bancshares, Inc. The Citizens State Bank of On- Minneapolis June 14, 1984 Ontonagon, Michigan tonagan Ontonagon, Michigan Commonwealth Bancorporation, Commonwealth State Bank Kansas City June 1, 1984 Inc. Glendale, Colorado Glendale, Colorado Community Bancorp Community State Bank Chicago June 5, 1984 Royal Center, Indiana Royal Center, Indiana Community Bank System, Inc. The Exchange National Bank New York May 31, 1984 Canton, New York Olean, New York Community Capital Corp. Community National Bank Dallas June 11, 1984 Houston, Texas Friendswood, Texas Community National Corpora- Community National Bank of Minneapolis June 21, 1984 tion Grand Forks Grand Forks, North Dakota Grand Forks, North Dakota Consolidated Banc Shares, Inc. The Lowndes Bank Richmond June 8, 1984 Clarksburg, West Virginia Clarksburg, West Virginia Financial and Property Manage- Educators Investment Company Kansas City June 6, 1984 ment, Inc. of Kansas, Inc. Emporia, Kansas Emporia, Kansas Financial Trans Corp. Chambersburg Trust Company Philadelphia May 31, 1984 Carlisle, Pennsylvania Chambersburg, Pennsylvania First Community Bancshares, Bank of Winfield Richmond June 12, 1984 Inc. Winfield, West Virginia Princeton, West Virginia First Fayette Bancshares, Inc. The First National Bank of Atlanta June 12, 1984 Fayette, Alabama Fayette Fayette, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 601 Section 3—Continued „ Reserve Effective Applicant B anwk (sN) fiank dat£ First National Bancorp Granite City Bank Atlanta June 8, 1984 Gainesville, Georgia Elberton, Georgia First National Bancshares of First National Bank of Aliceville Atlanta June 13, 1984 West Alabama, Inc. Alice ville, Alabama Alice ville, Alabama Bank of Gordo Gordo, Alabama First National Corporation of The First National Bank of West St. Louis June 11, 1984 West Point Point West Point, Mississippi West Point, Mississippi First Security Bancorp First Security Bank San Francisco June 11, 1984 Tacoma, Washington Tacoma, Washington FNB Financial Corporation First National Bank of Scottsburg St. Louis June 27, 1984 Scottsburg, Indiana Scottsburg, Indiana Fourth Financial Corporation Olathe Bancshares, Inc. Kansas City June 22, 1984 Wichita, Kansas Wichita, Kansas F.S. Bancorp Farmers State Bank Chicago May 29, 1984 Lagrange, Indiana Lagrange, Indiana General Bank Corporation of Horse Cave State Bank St. Louis June 18, 1984 Kentucky Horse Cave, Kentucky Horse Cave, Kentucky GuarantyShares of West Virgin- The Guaranty National Bank of Richmond June 21, 1984 ia, Inc. Huntington Huntington, West Virginia Huntington, West Virginia Hancock Holding Company Hancock Bank Atlanta May 30, 1984 Gulfport, Mississippi Gulfport, Mississippi Harrison County Bancshares, National Bancshares, Inc. Kansas City June 14, 1984 Inc. Bethany, Missouri Bethany, Missouri Harvest Bancorp, Inc. Farmers and Merchants National Richmond June 6, 1984 Hamilton, Virginia Bank of Hamilton Hamilton, Virginia Hillside Investors, Ltd. Bank of Hillside Chicago June 15, 1984 Hillside, Illinois Hillside, Illinois Independent Community Finan- Wylie Bank, N.A. Dallas June 18, 1984 cial Corporation Wylie, Texas Rockwall, Texas Balch Springs Bank, N.A. Balch Springs, Texas Iowa Park Bancshares, Inc. Electra State Bank and Trust Dallas June 6, 1984 Iowa Park, Texas Company Electra, Texas Jamestown Union Bancshares, Union Bank Atlanta June 7, 1984 Inc. Jamestown, Tennessee Jamestown, Tennessee Kentucky Southern Bancorp, The Citizens National Bank of St. Louis May 30, 1984 Inc. Bowling Green Bowling Green, Kentucky Bowling Green, Kentucky Lake Cities Financial Corpora- Lake Cities State Bank Dallas June 14, 1984 tion Lake Dallas, Texas Lake Dallas, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin • July 1984 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Lamar Trust Bancshares, Inc. Lamar Trust Company Kansas City June 4, 1984 Lamar, Missouri Lamar, Missouri L&W, Inc. State Bank of Portsmouth Chicago June 7, 1984 Portsmouth, Iowa Portsmouth, Iowa Marie R. Turner Holding Citizens Bank of Jackson Cleveland June 5, 1984 Company Jackson, Kentucky Jackson, Kentucky Merchants Republic Corp. The Merchants National Bank of Chicago June 6, 1984 Terre Haute, Indiana Terre Haute Terre Haute, Indiana Metro Bancorp, Inc. Metropolitan Bank and Trust Boston June 18, 1984 Melrose, Massachusetts Company Melrose, Massachusetts Metropolitan Bancshares, Inc. Metropolitan National Bank- Dallas June 8, 1984 Dallas, Texas Lewisville Lewisville, Texas Minnesota Asset Management Summit State Bank of Richfield Minneapolis May 25, 1984 Corporation Richfield, Minnesota St. Louis Park, Minnesota Montbello Bankcorp, Inc. Mission State Bank Kansas City June 11, 1984 Denver, Colorado Lake wood, Colorado Moran National Bancshares, The Moran National Bank Dallas May 31, 1984 Inc. Moran, Texas Moran, Texas National American Bancorp, The First National Bank of Brad- Philadelphia June 4, 1984 Inc. ford County Towanda, Pennsylvania Towanda, Pennsylvania New Boston Bancshares, Inc. The First National Bank of New Dallas June 28, 1984 New Boston, Texas Boston New Boston, Texas Northern Trust Corporation Northern Trust of Florida Corpo- Chicago June 19, 1984 Chicago, Illinois ration Miami, Florida O.F.I. Orano Financial, Inc. Minneapolis May 31, 1984 Navarre, Minnesota Navarre, Minnesota Olathe Bancshares, Inc. Patrons Bancorporation, Inc. Kansas City June 22, 1984 Wichita, Kansas Olathe, Kansas Old Point Financial Corporation The Old Point National Bank of Richmond June 27, 1984 Hampton, Virginia Phoebus Hampton, Virginia Olmstead Bancorporation, Inc. Byron Bancorporation, Inc. Minneapolis May 30, 1984 Byron, Minnesota Byron, Minnesota State Bank of Byron Byron, Minnesota PSB Corporation Peoples Savings Bank Chicago June 21, 1984 Wellsburg, Iowa Wellsburg, Iowa Pulaski Bancshares, Inc. Pulaski State Bank Chicago June 20, 1984 Pulaski, Wisconsin Pulaski, Wisconsin Richland State Bancorp, Inc. Richland State Bank Dallas June 1, 1984 Rayville, Louisiana Rayville, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 603 Section 3—Continued . „ , , . Reserve Effective Applicant Bank(s) ^ date Rosholt Bancorporation, Inc. The State Bank of Rosholt Chicago June 22, 1984 Rosholt, Wisconsin Rosholt, Wisconsin SecurShares Incorporated The Security State Bank Dallas June 14, 1984 Navosota, Texas Navasota, Texas Shamrock Bancshares, Inc. Sooner Bancshares, Inc. Dallas June 1, 1984 Coalgate, Oklahoma Caddo, Oklahoma Simmons First National Corpo- First Bank and Trust of Jones- St. Louis June 15, 1984 ration boro Pine Bluff, Arkansas Jonesboro, Arkansas Somerset Bancorp, Inc. Somerset Trust Company New York June 20, 1984 Somerville, New Jersey Somerville, New Jersey Stephenson National Bancorp, The Stephenson National Bank Chicago June 11, 1984 Inc. and Trust Marinette, Wisconsin Marinette, Wisconsin South St. Paul Bancshares, Inc. Summit State Bank of South St. Minneapolis May 31, 1984 South St. Paul, Minnesota Paul South St. Paul, Minnesota Summit Bankshares, Inc. First National Bank of Ripley Richmond June 22, 1984 Ripley, West Virginia Ripley, West Virginia Sunwest Financial Services, Sunwest Bank of Sandoval Coun- Kansas City June 7, 1984 Inc. ty, N.A. Alburquerque, New Mexico Rio Rancho, New Mexico Texas Commerce Bancshares, Texas Commerce Bank-Midland, Dallas June 14, 1984 Inc. N.A. Houston, Texas Midland, Texas Texas Community Bankers, Inc. Iredell State Bank of Iredell Dallas June 12, 1984 Iredell, Texas Iredell, Texas Texas Guld Coast Bancorp, Inc. First National Bank of Pearland Dallas June 15, 1984 Houston, Texas Pearland, Texas Ultra Bancorporation The Peoples National Bank of New York June 22, 1984 Bridgewater, New Jersey Central Jersey Piscataway, New Jersey UST Corp Natick Trust Company Boston June 13, 1984 Boston, Massachusetts Natick, Massachusetts Wesbanco, Inc. New Martinville Bank Cleveland June 22, 1984 Wheeling, West Virginia New Martin ville, West Virginia Western National Bank of Western National Bank of Texas Dallas May 29, 1984 Texas Fort Worth, Texas Fort Worth, Texas Section 4 Nonbanking Reserve Effective Applicant company Bank date First Lena Corporation First Lena Insurance Agency, Chicago June 18, 1984 Lena, Illinois Inc. Lena, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin • July 1984 Section 4—Continued Nonbanking Reserve Effective Applicant company Bank date First National Bankshares of First Loan Company Kansas City June 5, 1984 Beloit, Inc. Beloit, Kansas Beloit, Kansas First Oklahoma Bancorporation, Holliday Mortgage Corporation Kansas City June 6, 1984 Inc. Tulsa, Oklahoma Oklahoma City, Oklahoma First Oklahoma Bancorporation, Sun Country Financial Corpora- Kansas City May 29, 1984 Inc. tion of Colorado Oklahoma City, Oklahoma Colorado Springs, Colorado First Valley Bancorp Lehigh Securities Corporation Philadelphia June 8, 1984 Bethlehem, Pennsylvania Lehigh County, Pennsylvania First Vermont Financial Corpo- Vermont Mortgage Group, Inc. Boston June 13, 1984 ration Wilmington, Vermont Brattleboro, Vermont Marshall & Ilsley Corporation Grootemaat Corporation Chicago June 13, 1984 Milwaukee, Wisconsin Milwaukee, Wisconsin Peoples Investment Corporation Dorf Insurance Agency, Inc. St. Louis June 6, 1984 Cuba, Missouri Cuba, Missouri S.B.T. Financial, Inc. Kearns Agency Minneapolis June 14, 1984 Townsend, Montana Townsend, Montana Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date First National Agency Company First National Bank of Minneapolis June 1, 1984 of Deer River, Inc. Deer River Deer River, Minnesota Deer River, Minnesota general insurance activities Tuttle Bancshares, Inc. The Bank of Tuttle Kansas City June 1, 1984 Tuttle, Oklahoma Tuttle, Oklahoma Tuttle Insurance Agency, Inc. Tuttle, Oklahoma ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks . .. „ , , , Reserve Effective Applicant Bank(s) ^ ^ State Bank of Albany The Mohawk National Bank New York June 13, 1984 Albany, New York Schenectady, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 605 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 Apr. Board of Governors, No. 83-1818 (8th Cir., filed 20, 1984). June 21, 1983); and No. 83-1819 (8th Cir., filed June Northeast Bancorp, Inc. v. Board of Governors, 21, 1983). No. 84-4047, No. 84-4051, No. 84-4053 (2d Cir., The Committee for Monetary Reform v. Board of filed 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). Wolfson 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

606 Membership of the Board of Governors of the Federal Reserve System, 1913-84 APPOINTIVE MEMBERS1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin Boston Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg... .New York do Term expired Aug. 9, 1918. Frederic A. Delano .Chicago do Resigned July 21, 1918. W.P.G. Harding .... .Atlanta , do Term expired Aug. 9, 1922. Adolph C. Miller ... .San Francisco do Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss New York .Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah Chicago.... .Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt New York June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills Cleveland... .Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell Minneapolis .May 12, 1921 Resigned May 12, 1923. Milo D. Campbell Chicago .Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger Cleveland... .May 1, 1923 Resigned Sept. 15, 1927. George R. James St. Louis .May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham...Chicago do Died Nov. 28, 1930. Roy A. Young Minneapolis. .Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer New York ... .Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee Kansas City, .May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black Atlanta .May 19, 1933 Resigned Aug. 15, 1934. M.S. Szymczak Chicago .June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas Kansas City... do Served until Feb. 10, 1936.3 Marriner S. Eccles San Francisco .Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick New York ... .Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee Cleveland.... do Served until Apr. 4, 1946.3 Ronald Ransom Atlanta do Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison Dallas .Feb. 10,1936 Resigned July 9, 1936. Chester C. Davis Richmond.... .June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper New York ... .Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans Richmond.... .Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ..St. Louis .Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton Boston .Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe Philadelphia. .Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton Atlanta .Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell Minneapolis do Resigned June 30, 1952. Wm. McC. Martin, Jr New York .. .April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr San Francisco .Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson Kansas City... do Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston Philadelphia... .Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller .Minneapolis ... .Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson Dallas. .Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr Atlanta .Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

607 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 George W. Mitchell. .Chicago Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane .Richmond Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel... .San Francisco Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer. .Philadelphia Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill.. .Dallas May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns .New York Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan .St. Louis Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher .San Francisco June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland .... .Kansas City June 11, 1973 Resigned May 15, 1976. Henry C. Wallich .Boston Mar. 8, 1974 Philip E. Cold well .Dallas Oct. 29, 1974 Served through Feb. 29, 1980. Philip C. Jackson, Jr. .Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee .Richmond Jan. 5, 1976 Stephen S. Gardner... .Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly .Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller .San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters .Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice .New York June 20, 1979 Frederick H. Schultz. .Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker .Philadelphia Aug. 6, 1979 Lyle E. Gramley .Kansas City May 28, 1980 Preston Martin .San Francisco Mar. 31, 1982 Martha R. Seger .Chicago July 2, 1984 Chairmen4 Vice Chairmen4 Charles S. Hamlin .Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug 10, 1914-Aug. 9, 1916 W.P.G. Harding .Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug 10, 1916-Aug. 9, 1918 Daniel R. Crissinger... .May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young .Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer .Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black .May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles .Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe ... .Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr. .Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns .Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller .Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz July 27, 1979-Feb. 11, 1982 Paul A. Volcker .Aug. 6, 1979- Preston Martin Mar. 31, 1982- EX-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams ...Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr. ..Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the Secretary of the Treasury and the Comptroller of the Currency Federal Reserve Board was composed of seven members, including should continue to serve as members until Feb. 1, 1936; that the five appointive members, the Secretary of the Treasury, who was appointive members in office on the date of that act should continue ex-officio chairman of the Board, and the Comptroller of the to serve until Feb. 1, 1936, or until their successors were appointed Currency. The original term of office was ten years, and the five and had qualified; and that thereafter the terms of members should original appointive members had terms of two, four, six, eight, and be fourteen years and that the designation of Chairman and Vice ten years respectively. In 1922 the number of appointive members Chairman of the Board should be for a term of four years. was increased to six, and in 1933 the term of office was increased to 2. Date after words "Resigned" and "Retired" denotes final day twelve years. The Banking Act of 1935, approved Aug. 23, 1935, of service. changed the name of the Federal Reserve Board to the Board of 3. Successsor took office on this date. Governors of the Federal Reserve System and provided that the 4. Chairman and Vice Chairman were designated Governor and Board should be composed of seven appointive members; that the Vice Governor before Aug. 23, 1935. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 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 POLIC YINSTR UMENTS 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

A2 Federal Reserve Bulletin • July 1984 International Statistics SECURITIES MARKETS AND CORPORATE FINANCE A50 U.S. international transactions—Summary A32 New security issues—State and local A51 U.S. foreign trade governments and corporations A51 U.S. reserve assets A33 Open-end investment companies—Net sales and A51 Foreign official assets held at Federal Reserve asset position Banks A3 3 Corporate profits and their distribution A52 Foreign branches of U.S. banks—Balance sheet A34 Nonfinancial corporations—Assets and data liabilities A54 Selected U.S. liabilities to foreign official A34 Total nonfarm business expenditures on new institutions plant and equipment A35 Domestic finance companies—Assets and liabilities and business credit REPORTED BY BANKS IN THE UNITED STATES A54 Liabilities to and claims on foreigners REAL ESTATE A55 Liabilities to foreigners A57 Banks' own claims on foreigners A36 Mortgage markets A58 Banks' own and domestic customers' claims on A37 Mortgage debt outstanding foreigners A58 Banks' own claims on unaffiliated foreigners A59 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT domestic offices and foreign branches A3 8 Total outstanding and net change A39 Terms REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A60 Liabilities to unaffiliated foreigners A61 Claims on unaffiliated foreigners A40 Funds raised in U.S. credit markets A41 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A62 Foreign transactions in securities Domestic Nonfinancial Statistics A63 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A42 Nonfinancial business activity—Selected measures A42 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A43 Labor force, employment, and unemployment A44 Industrial production—Indexes and gross value A63 Discount rates of foreign central banks A46 Housing and construction A64 Foreign short-term interest rates A47 Consumer and producer prices A64 Foreign exchange rates A48 Gross national product and income A49 Personal income and saving A65 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 RESERVES, MONEY STOCK, LIQUID ASSETS, AND DEBT MEASURES Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 IItteemm 1983 1984 1984 Q2 Q3 Q4 QI Jan. Feb. Mar. Apr. May Reserves of depository institutions2 1 11.8 6.0 .5 6.9 7.6 19.0 1.3 .C 10.7 2 Required 12.0 5.9 -.1 4.5 5.9 8.0 9.3 7.4' 8.0 3 Nonborrowed 5.2 2.9 8.0 8.2 9.8 24.5 -11.7 -9.6 -46.2 4 Monetary base3 10.2 8.1 7.8 9.0 12.8 10.5 .8 6.C 10.1 Concepts of money, liquid assets, and debt4 5 Ml 11.6 9.5 4.8 7.2 10.7 6.6 5.2' .4 12.6 6 M2 10.6 6.9 8.5 7.C 5.8' 8.5' 4.1 6.9' 8.8 7 M3 9.3 7.4 9.9 9.C 6.7' 10.1' 9.3 10^ 10.7 8 L 10.3 9.6 8.9 lO^ 7.8' 11.2' 15.7' 10.4 n.a. 9 Debt 10.7 11.8' 10.3' 12.5' 13.<y n.O' 12.2' 13.3 n.a. Nontransaction components 10 In M25 10.2 6.1 9.7' 6.9' 4.2' 9.2' 3.7' 9.0' 7.6 11 In M3 only6 3.8 9.8' Yl.V 10.6 16.8' 31.5' 27.3' 18.2 Time and savings deposits Commercial banks 12 Savings7 -14.8 -6.3 -6.4 -16.2 -22.3 -18.2 -11.1' -2.8' -3.7 13 Small-denomination time8 -21.2 13.7 19.3 4.4 -.7 -.3 2.4' 8.2' 14.2 14 Large-denomination time9,10 -14.6 -4.8' -.2' io.(y 9.1' 5.8 23.7' 18.6 36.6 Thrift institutions 15 Savings7 -1.3 -2.2 -4.4 -5.1 -3.4 -8.1 .7 1.4 1.4 16 Small-denomination time -17.0 12.3 18.8 11.8 11.2 10.8 4.8 6.7' 13.0 17 Large-denomination time9 51.2 63.5 58.1' 58^ 70.5' 63.2 38.6 40.5 40.2 Debt components4 18 Federal 23.2 22.9' 13.3' 14.7' 17.7' 22.(X 7.5' 12.7 n.a. 19 Nonfederal 7.3 8.7' 9.5 11.8 ll^ 10.3' 13.5 n.a. 20 Total loans and securities at commercial banks" 9.9 9.7 10.4' 14.0 12.& 15.9' 13.6' 5.6' 14.9 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 Domestic Nonfinancial Statistics • July 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 FFFaaaccctttooorrrsss 1984 1984 Apr. May June May 16 May 23 May 30 June 6 June 13 June 20 June 27 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 174,232' 173,797 175,398 174,875 169,162 172,199 174,301 174,525 176,524 176,728 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 154,226 152,987 154,500 152,606 148,520 152,195 153,849 154,735 155,037 155,132 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 152,859 152,313 153,354 152,606 148,520 152,195 152,800 154,383 153,350 152,863 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 1,367 674 1,146 0 0 0 1,049 352 1,687 2,269 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,660 8,571 8,602 8,516 8,516 8,515 8,583 8,534 8,612 8,756 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,557 8,527 8,503 8,516 8,516 8,515 8,509 8,502 8,501 8,501 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 103 44 99 0 0 0 74 32 111 255 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 87 50 106 0 0 0 82 18 175 241 99999 LLLLLoooooaaaaannnnnsssss 1,285 2,964 3,166 4,613 3,746 3,008 3,131 2,508 3,421 2,973 1111100000 FFFFFllllloooooaaaaattttt 756' 524 594 11 439 394 581 470 754 964 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 9,219 8,701 8,430 9,129 7,941 8,088 8,075 8,260 8,525 8,661 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,110 11,106 11,103 11,107 11,106 11,104 11,104 11,104 11,104 11,103 1111133333 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 1111144444 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 15,949' 16,018 16,082 16,013 16,024 16,037 16,055 16,070 16,085 16,100 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 170,426' 172,013 174,218 172,168 177,825 172,653 173,742 174,414 174,275 174,021 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 523' 544 531 546 548 544 537 535 530 527 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 6,637 4,960 3,894 3,521 4,020 3,332 4,704 3,311 4,081 3,401 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 220 241 244 230 237 274 241 234 269 236 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,482' 1,456 1,388 1,380 1,599 1,304 1,285 1,318 1,434 1,427 2222200000 OOOOOttttthhhhheeeeerrrrr 394 487 439 511 441 436 513 394 489 359 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,098 5,874 6,214 5,777 5,915 5,885 5,889 5,849 6,222 6,946 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 20,129' 19,964 20,272 22,479 16,324 19,531 19,167 20,261 21,030 21,632 End-of-month figures Wednesday figures 1984 1984 Apr. May June May 16 May 23 May 30 June 6 June 13 June 20 June 27 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 182,683 175,753 175,051 171,598 171,438 174,565 174,725 173,197 181,880 173,877 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss11111 162,134 154,869 152,859 149,417 151,148 153,697 152,791 153,635 158,583 152,907 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 155,042 151,745 152,859 149,417 151,148 153,697 152,791 153,635 153,182 152,907 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 7,092 3,124 0 0 0 0 0 0 5,401 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,982 8,851 8,501 8,516 8,516 8,515 8,502 8,501 8,872 8,501 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,556 8,515 8,501 8,516 8,516 8,515 8,502 8,501 8,501 8,501 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 426 336 0 0 0 0 0 0 371 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 305 426 0 0 0 0 0 0 619 0 3333311111 LLLLLoooooaaaaannnnnsssss 907 2,832 4,760 5,459 3,225 2,703 4,387 2,404 4,394 3,332 3333322222 FFFFFllllloooooaaaaattttt 609 588 -655 221 432 1,390 752 212 590 352 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 9,746 8,187 9,586 7,985 8,117 8,260 8,293 8,445 8,822 8,785 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,109 11,104 11,100 11,107 11,104 11,104 11,104 11,104 11,103 11,100 3333355555 SSSSSpppppeeeeeccccciiiiiaaaaalllll dddddrrrrraaaaawwwwwiiiiinnnnnggggg rrrrriiiiiggggghhhhhtttttsssss ccccceeeeerrrrrtttttiiiiifffffiiiiicccccaaaaattttteeeee aaaaaccccccccccooooouuuuunnnnnttttt ............... 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3333366666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccuuuuurrrrrrrrrreeeeennnnncccccyyyyy ooooouuuuutttttssssstttttaaaaannnnndddddiiiiinnnnnggggg 15,987' 16,053 16,113 16,022 16,035 16,047 16,068 16,083 16,098 16,113 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 170,345' 173,803 175,070 172,187 172,097 173,562 174,228 174,603 174,114 174,441 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 547' 534 523 549 544 542 532 530 528 523 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 16,729 4,855 4,397 5,0% 2,594 6,306 3,458 3,524 2,922 3,533 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 345 295 237 229 212 292 206 251 179 243 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,134' 1,148 1,148 1,136 1,136 1,148 1,148 1,150 1,150 1,149 4444422222 OOOOOttttthhhhheeeeerrrrr 324 416 432 493 407 425 378 342 405 310 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,391 5,939 5,971 5,563 5,750 5,715 5,658 5,752 6,240 5,942 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 18,581' 20,538 19,104 18,092 20,455 18,344 20,906 18,849 28,161 19,567 I. Includes securities loaned—fully guaranteed by U.S government securities 2. Excl&des required clearing balances and adjustments to compensate for pledged with Federal Reserve Banks—and excludes (if any) securities sold and float. scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Depository Institutions A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1981 1982 1983 1984 Dec. Dec. Nov. Dec. Jan. Feb. Mar. Apr. May June 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss''''' 26,163 24,804 20,943 20,986 21,325 18,414 19,484 20,351 19,560 20,278 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 19,538 20,392 20,558 20,755 22,578 22,269 20,396 20,152 20,446 20,770 33333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 15,755 17,049 17,201 17,908 18,795 17,951 16,794 16,802 16,960 17,297 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 3,783 3,343 3,357 2,847 3,782 4,318 3,602 3,349 3,486 3,472 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 41,918 41,853 38,144 38,894 40,120 36,365 36,278 37,154 36,519 37,575 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 41,606 41,353 37,615 38,333 39,507 35,423 35,569 36,664 35,942 36,712 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 312 500 529 561 613 942 709 490 577 863 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 642 697 912 745 715 567 952 1,234 2,988 3,300 99999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 53 33 119 96 86 103 133 139 196 264 1111100000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 149 187 6 2 4 5 27 44 37 1,873 Biweekly averages of daily figures for weeks ending 1984 Feb. 29 Mar. 14 Mar. 28 Apr. 11 Apr. 25 May 9 May 23 June 6 June 20P July 4P 1111111111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss''''' 18,212 19,948 18,859 20,237 20,556 20,029 19,390 19,329 20,619 20,372 1111122222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh22222 21,750 19,980 20,938 19,803 20,476 20,010 20,655 20,570 20,604 21,121 1111133333 VVVVVaaaaauuuuulllllttttt cccccaaaaassssshhhhh uuuuussssseeeeeddddd tttttooooo sssssaaaaatttttiiiiisssssfffffyyyyy rrrrreeeeessssseeeeerrrrrvvvvveeeee rrrrreeeeeqqqqquuuuuiiiiirrrrreeeeemmmmmeeeeennnnntttttsssss33333 ..... 17,452 16,458 17,188 16,520 17,103 16,582 17,167 17,023 17,280 17,486 1111144444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 4,298 3,552 3,750 3,282 3,373 3,429 3,489 3,547 3,324 3,635 1111155555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss55555 35,664 36,406 36,047 36,758 37,659 36,611 36,556 36,352 37,899 37,857 1111166666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 34,943 35,635 35,322 36,413 37,091 36,019 35,937 35,865 37,143 36,617 1111177777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss66666 721 770 725 344 568 592 620 487 756 1,240 1111188888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 571 689 1,136 1,313 1,232 1,064 4,180 3,070 2,965 3,909 1111199999 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnngggggsssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 116 118 149 131 138 159 195 239 257 289 2222200000 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 7 21 30 36 44 61 34 16 1,974 2,846 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 with Federal Reserve Banks, which exclude required clearing balances and 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1984 week ending Monday BByy mmaattuurriittyy aanndd ssoouurrccee Apr. 30 May 7 May 14 May 21 May 28 June 4 June 11 June 18 June 25 One day and continuing contract 1 Commercial banks in United States 53,458 59,973 57,642' 58,637' 57,887 61,315 6666,,118866 61,024 5577,,334422 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 20,606 21,749 22,804 21,164 22,206 22,309 23,296 21,313 21,271 3 Nonbank securities dealers 6,106 5,791 6,016 6,493 7,057 6,043 5,553 4,893 4,916 4 All other 25,893 26,181 26,133 26,775 25,006 27,514 25,275 25,176 24,743 All other maturities 5 Commercial banks in United States 8,285 8,237 8,688 9,739 10,303 9,870 9,790 9,604 99,,664477 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 11,598 12,116 12,375 12,642 12,647 12,309 11,921 11,770 12,247 7 Nonbank securities dealers 8,632 8,542 8,036 7,379' 7,951 7,498 6,770 6,720 6,895 8 All other 9,164 9,3% 9,823 10,504 10,030 8,835 9,207 9,294 8,957 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 21,468 23,192 22,907 25,140' 24,345' 27,458 28,633 27,140 24,389 10 Nonbank securities dealers 5,617 7,069 5,876 5,686 5,488 5,938 4,971 4,951 4,845 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • July 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 6/30/84 date rate 6/30/84 rate 6/30/84 rate 6/30/84 rate Boston 9 4/9/84 8>/> 9 8'/i 10 9 Vi 11 10'/! 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... 9 4/13/84 81/2 9 m 10 9l/l 11 10 >/i 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 ll v 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 date A le l v l e F l) . — R. Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1973 7'/2 71/2 1978— July 3 7-7'/4 71/4 11998811—— MMaayy 55 13-14 14 1974— Apr. 25 7>/2-8 10 71/4 71/4 88 14 14 3 0 8 Aug. 21 73/4 73/4 Nov. 2 13-14 13 Dec. 9 73/4-8 73/4 Sept. 22 8 8 6 13 13 16 73/4 73/4 Oct. 16 %-m 8'/! Dec. 4 12 12 20 81/2 8'/! 1975— Jan. 6 7'A-73/4 73/4 Nov. 1 8l/2-9>/2 9 Vi 1982— July 20 11V2-12 im 10 7'/4-73/4 71/4 3 91/2 91/2 23 ll</2 Ul/2 24 7 !/4 71/4 Aug. 2 11-11'/! 11 Feb. 5 63/4-7!/4 6% 1979—July 20 10 10 3 11 u 7 63/4 63/4 Aug. 17 10-10'/! 10'/! 16 10^! 10'/! Mar. 10 6!/4-63/4 6'/4 20 101/! 10'/! 27 10-101/2 10 14 6>/4 6'/4 Sept. 19 lO'/i-l 1 11 30 10 10 May 16 6-6'/4 6 21 11 11 Oct. 12 9^-10 9lA 23 6 6 Oct. 8 11-12 12 13 9'/! 9l/2 10 12 12 Nov. 22 9-91/2 9 1976— Jan. 19 5'/2-6 S5l/2V i 26 9 9 23 51/2 1980—Feb. 15 12-13 13 Dec. 14 8'/:-9 9 Nov. 22 5'/4-5 '/i 5W 19 13 13 15 8>/>-9 m 26 51/4 May 29 12-13 13 17 8V2 8'/! 51/4 30 12 12 1977— Aug. 30 5'/4-53/4 June 13 11-12 11 1984— Apr. 9 8>A-9 9 31 5'/4-53/4 51/4 16 11 11 13 9 9 Sept. 2 53/4 53/4 July 28 10-11 10 Oct. 26 6 53/4 29 10 10 6 Sept. 26 11 11 1978— Jan. 9 6-6 »/2 6 Vi Nov. 17 12 12 20 6'/2 6>/i Dec. 5 12-13 13 May 11 6'/>-7 7 13 13 12 7 7 In effect June 30, 1984 9 9 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 TTyypp dd ee 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 dd tt ee ii pp nn oo ttee ssii rr tt vv ,, aa aa ll55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts7'8 7 12/30/76 $0-$28.9 million 3 12/29/83 9 Yi 12/30/76 Over $28.9 million 1122 1122//2299//8833 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'/4 12/30/76 By original maturity Less than IV2 years 3 10/6/83 Time and savings2-* V/2 years or more 0 10/6/83 Savings 3 3/16/67 Eurocurrency liabilities TTiimmee44 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2W 1/8/76 4 years or more I 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2'/! 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97- Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report 320) provides that $2 million of reservable liabilities (transaction accounts, for 1976, table 13. Under provisions of the Monetary Control Act, depository nonpersonal time deposits, and Eurocurrency liabilities) of each depository institutions include commercial banks, mutual savings banks, savings and loan institution be subject to a zero percent reserve requirement. The Board is to adjust associations, credit unions, agencies and branches 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 lxh 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 • July 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 it u a t n i d o ns)1 In effect June 30, 1984 In effect June 30, 1984 Type of deposit Percent Effective date Percent Effective date 51/2 1 Savings 5 Vi 1/1/84 7/1/79 2 Negotiable order of withdrawal accounts 5Vi 12/31/80 5'A 12/31/80 3 Negotiable order of withdrawal accounts of $2,500 or more2 1/5/83 1/5/83 4 Money market deposit account2 12/14/82 12/14/82 5 7 T - i 3 m 1 e d a a c y co s u o n f t s l es b s y tha m n a t $ u 2 r , i 5 ty 0 04 51/2 1/1/84 5'/5 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 Nov. Dec. Jan. Feb. Mar. Apr. May U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 13,899 17,067 18,888 1,435 3,695 0 368 3,159 3,283 661100 2 Gross sales 6,746 8,369 3,420 0 0 1,967 828 0 0 2,003 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,816 3,000 2,400 700 0 1,300 600 0 3,283 2,200 Others within 1 year 5 Gross purchases 317 312 484 155 0 0 0 0 198 0 6 Gross sales 23 0 0 0 0 0 0 0 0 0 7 Maturity shift 13,794 17,295 18,887 2,828 915 573 -2,488 1,012 347 2,739 8 Exchange -12,869 -14,164 -16,553 -2,930 0 1,530 -4,574 0 -2,223 -1,807 9 Redemptions 0 0 87 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 1,702 1,797 1,896 820 0 0 0 0 808 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -10,299 -14,524 -15,533 -1,684 -915 -487 2,488 -1,012 -273 -2,279 13 Exchange 10,117 11,804 11,641 1,796 0 1,530 2,861 0 2,223 1,150 5 to 10 years 14 Gross purchases 393 388 890 349 0 0 0 0 200 0 15 Gross sales 0 0 0 0 0 300 0 0 0 0 16 Maturity shift -3,495 -2,172 -2,450 -250 0 -86 97 0 -75 -383 17 Exchange 1,500 2,128 2,950 700 0 0 1,000 0 0 400 Over 10 years 18 Gross purchases 379 307 383 151 0 0 0 0 277 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -601 -904 -894 0 0 -97 0 0 -77 21 Exchange 1,253 234 1,962 434 0 0 713 0 0 257 All maturities 22 Gross purchases 16,690 19,870 22,540 2,909 3,695 0 368 3,159 1,484 610 23 Gross sales 6,769 8,369 3,420 0 0 2,267 828 0 0 2,003 24 Redemptions 1,816 3,000 2,487 700 0 1,300 600 0 0 2,200 Matched transactions 25 Gross sales 589,312 543,804 578,591 56,858 58,979 54,833 55,656 66,827 72,293 79,313 26 Gross purchases 589,647 543,173 576,908 57,991 56,404 58,096 47,310 73,634 71,754 79,608 Repurchase agreements 27 Gross purchases 79,920 130,774 105,971 3,257 3,644 14,245 0 4,996 15,313 8,267 28 Gross sales 78,733 130,286 108,291 3,257 2,260 15,629 0 4,996 8,220 12,199 29 Net change in U.S. government securities 9,626 8,358 12,631 3,342 2,504 -1,688 -9,407 9,966 11,321 -7,228 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 494 0 0 0 0 0 0 0 0 0 31 Gross sales 0 0 0 0 0 0 0 0 0 0 32 Redemptions 108 189 292 84 2 40 38 10 2 40 Repurchase agreements 33 Gross purchases 13,320 18,957 8,833 497 634 931 0 609 1,247 616 34 Gross sales 13,576 18,638 9,213 497 426 1,139 0 609 820 744 35 Net change in federal agency obligations 130 130 -672 -84 206 -248 -38 -10 424 -169 BANKERS ACCEPTANCES 36 Repurchase agreements, net -582 1,285 -1,062 0 418 -418 0 0 305 122 37 Total net change in System Open Market Account 9,175 9,773 10,897 3,258 3,128 -2,354 -9,444 9,956 12,050 -7,275 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 DomesticN onfinancial Statistics • July 1984 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1984 1984 May 30 June 6 June 13 June 20 June 27 Apr. May June Consolidated condition statement ASSETS 1 Gold certificate account 11,104 11,104 11,104 11,103 11,100 11,109 11,104 11,100 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 453 449 451 453 445 482 443 435 Loans 4 To depository institutions 2,703 4,387 2,404 4,394 3,332 907 22,,883322 44,,776600 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 00 661199 00 330055 442266 00 Federal agency obligations 7 Bought outright 8,515 8,502 8,501 88,,550011 88,,550011 88,,555566 88,,551155 88,,550011 8 Held under repurchase agreements 0 0 0 371 0 426 336 0 U.S. government securities Bought outright 9 Bills 67,766 66,860 67,704 67,251 66,976 6699,,111111 6655,,881144 6666,,992288 10 Notes 63,870 63,870 63,870 63,870 63,870 64,127 63,870 63,870 11 Bonds 22,061 22,061 22,061 22,061 22,061 21,804 22,061 22,061 12 Total bought outright1 153,697 152,791 153,635 153,182 152,907 155,042 151,745 152,859 13 Held under repurchase agreements 0 0 0 5,401 0 7,092 3,124 0 14 Total U.S. government securities 153,697 152,791 153,635 158,583 152,907 162,134 154,869 152,859 15 Total loans and securities 164,915 165,680 164,540 172,468 164,740 172,328 166,978 166,120 16 Cash items in process of collection 10,891 8,085 7,447 8,433 7,511 7,044 8,770 6,350 17 Bank premises 553 553 553 554 555 548 553 556 Other assets 18 Denominated in foreign currencies2 3,842 3,794 3,807 3,810 3,814 3,912 33,,779944 33,,773333 19 All other3 3,865 3,946 4,085 4,458 4,416 5,286 3,840 5,297 20 Total assets 200,241 198,229 196,605 205,897 197,199 205,327 200,100 198,209 LIABILITIES 21 Federal Reserve notes 158,510 159,142 159,502 158,997 159,296 155,388 158,727 159,915 Deposits 22 To depository institutions 19,492 22,054 19,999 29,311 20,716 19,715 2211,,668866 2200,,225522 23 U.S. Treasury—General account 6,306 3,458 3,524 2,922 3,533 16,729 4,855 4,397 24 Foreign—Official accounts 292 206 251 179 243 345 295 237 25 Other 425 378 342 405 310 324 416 432 26 Total deposits 26,515 26,096 24,116 32,817 24,802 37,113 27,252 25,318 27 Deferred availability cash items 9,501 7,333 7,235 7,843 7,159 6,435 8,182 7,005 28 Other liabilities and accrued dividends4 2,338 2,358 2,355 2,847 2,530 2,920 2,593 2,528 29 Total liabilities 196,864 194,929 193,208 202,504 193,787 201,856 196,754 194,766 CAPITAL ACCOUNTS 30 Capital paid in 1,532 1,537 1,538 1,539 1,541 1,520 1,531 1,541 31 Surplus 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 32 Other capital accounts 380 298 394 389 406 486 350 437 33 Total liabilities and capital accounts 200,241 198,229 196,605 205,897 197,199 205,327 200,100 198,209 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 113,517 113,776 115,446 114,336 116,908 116,173 111144,,449955 111166,,223344 Federal Reserve note statement 35 Federal Reserve notes outstanding 186,105 186,571 186,896 187,464 187,787 184,496 187,637 36 LESS: Held by bank5 27,595 27,429 27,394 28,467 28,491 29.108 27,722 37 Federal Reserve notes, net 158,510 159,142 159,502 158,997 159,296 155,388 159,915 Collateral held against notes net: 38 Gold certificate account 11,104 11,104 11,104 11,103 11,100 11.109 11,100 39 Special drawing rights certificate account 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 41 U.S. government and agency securities .. 142,788 143,420 143,780 143,276 143,578 139,661 144,197 42 Total collateral 158,510 159,142 159,502 158,997 159,296 155,388 159,915 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 30 June 6 June 13 June 20 June 27 April 30 May 31 June 29 1 Loans—Total 2,703 4,387 2,404 4,394 3,332 907 2,832 4,760 2 Within 15 days 2,660 4,255 2,229 4,363 3,294 864 2,764 4,674 3 16 days to 90 days 43 132 175 31 38 43 68 86 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 619 0 305 426 0 6 Within 15 days 0 0 0 619 0 305 426 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 153,697 152,791 153,635 158,583 152,907 162,134 154,869 152,859 10 Within 15 days' 9,551 8,705 8,600 12,340 7,687 10,462 7,751 5,129 11 16 days to 90 days 30,785 30,918 33,726 32,922 31,614 35,614 30,922 34,053 12 91 days to 1 year 44,706 44,603 42,744 44,756 45,041 46,562 47,631 45,112 13 Over 1 year to 5 years 35,228 35,138 35,138 35,138 35,138 36,267 35,138 35,138 14 Over 5 years to 10 years 14,339 14,339 14,339 14,339 14,339 14,322 14,339 14,339 15 Over 10 years 19,088 19,088 19,088 19,088 19,088 18,907 19,088 19,088 16 Federal agency obligations—Total 8,515 8,502 8,501 8,872 8,501 8,982 8,851 8,501 17 Within 15 days1 159 86 108 597 159 561 495 159 18 16 days to 90 days 559 640 653 535 519 635 559 519 19 91 days to 1 year 1,638 1,646 1,604 1,604 1,647 1,657 1,638 1,647 20 Over 1 year to 5 years 4,421 4,392 4,436 4,436 4,476 4,409 4,421 4,476 21 Over 5 years to 10 years 1,339 1,339 1,301 1,301 1,301 1,321 1,339 1,301 22 Over 10 years 399 399 399 399 399 399 399 399 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 Nonfinancial Statistics • July 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. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted ADJUSTED FOR 1 Total reserves2 30.64 31.51 33.63 35.28 35.32 35.25 35.28 35.50 36.07 36.10 36.1(K 36.43 2 Nonborrowed reserves 28.95 30.88 33.00 34.51 34.47 34.34 34.51 34.79 35.50 35.15 34.87 33.44 3 Nonborrowed reserves plus extended credit3 28.95 31.03 33.18 34.51 34.73 34.35 34.51 34.79 35.50 35.18 34.91' 33.48 4 Required reserves 30.13 31.20 33.13 34.72 34.81 34.72 34.72 34.89 35.12 35.40 35.61' 35.85 5 Monetary base4 150.11 157.82 169.81 184.97 182.85 183.95 184.97 186.94 188.58 188.72' 189.66' 191.26 Not seasonally adjusted 6 Total reserves2 31.34 32.23 34.35 36.00 35.31 35.35 36.00 37.30 35.65 35.63 36.46' 35.76 7 Nonborrowed reserves 29.65 31.59 33.71 35.22 34.47 34.45 35.22 36.59 35.09 34.68 35.23 32.78 8 Nonborrowed reserves plus extended credit3 29.65 31.74 33.90 35.23 34.73 34.45 35.23 36.59 35.09 34.70 35.28 32.81 9 Required reserves 30.82 31.91 33.85 35.44 34.81 34.82 35.44 36.69 34.71 34.92 35.97' 35.19 10 Monetary base4 152.80 160.65 172.83 188.23 182.67 185.04 188.23 188.10 185.93 187.17' 189.65' 190.33 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 40.66 41.93 41.85 38.89 38.14 38.14 38.89 40.12 36.37 36.28 37.15 36.52 12 Nonborrowed reserves 38.97 41.29 41.22 38.12 37.29 37.24 38.12 39.41 35.80 35.33' 35.92 33.53 13 Nonborrowed reserves plus extended credit3 38.97 41.44 41.41 38.12 37.55 37.25 38.12 39.41 35.80 35.33 35.78 33.83 14 Required reserves 40.15 41.61 41.35 38.33 37.63 37.62 38.33 39.51 35.42 35.57 36.66 35.94 15 Monetary base4 163.00 170.47 180.52 192.36 186.60 188.97 192.36 192.30 186.67 187.81 190.34' 191.02 1. Figures incorporate adjustments for discontinuities associated with the of vault cash holdings of thrift institutions that is included in the currency implementation of the Monetary Control Act and other regulatory changes to component of the money stock plus, for institutions not having required reserve reserve requirements. To adjust for discontinuities due to changes in reserve balances, the excess of current vault cash over the amount applied to satisfy requirements on reservable nondeposit liabilities, the sum of such required current reserve requirements. After the introduction of contemporaneous reserve reserves is subtracted from the actual series. Similarly, in adjusting for discontin- requirements (CRR), currency and vault cash figures are measured over the uities in the monetary base, required clearing balances and adjustments to weekly computation period ending Monday. compensate for float also are subtracted from the actual series. Before CRR, all components of the monetary base other than excess reserves 2. Total reserves not adjusted for discontinuities consist of reserve balances are seasonally adjusted as a whole, rather than by component, and excess with Federal Reserve Banks, which exclude required clearing balances and reserves are added on a not seasonally adjusted basis. After CRR, the seasonally adjustments to compensate for float, plus vault cash used to satisfy reserve adjusted series consists of seasonally adjusted total reserves, which include requirements. Such vault cash consists of all vault cash held during the lagged excess reserves on a not seasonally adjusted basis, plus the seasonally adjusted computation period by institutions having required reserve balances at Federal currency component of the money stock and the remaining items seasonally Reserve Banks plus the amount of vault cash equal to required reserves during the adjusted as a whole. maintenance period at institutions having no required reserve balances. 5. Reflects actual reserve requirements, including those on nondeposit liabil- 3. Extended credit consists of borrowing at the discount window under the ities, with no adjustments to eliminate the effects of discontinuities associated terms and conditions established for the extended credit program to help with implementation of the Monetary Control Act or other regulatory changes to depository institutions deal with sustained liquidity pressures. Because there is reserve requirements. not the same need to repay such borrowing promptly as there is with traditional short-term adjustment credit, the money market impact of extended credit is NOTE. Latest monthly and biweekly figures are available from the Board's similar to that of nonborrowed reserves. H.3(502) statistical release. Historical data and estimates of the impact on 4. The monetary base not adjusted for discontinuities consists of total reserves required reserves of changes in reserve requirements are available from the plus required clearing balances and adjustments to compensate for float at Federal Banking Section, Division of Research and Statistics, Board of Governors of the Reserve Banks and the currency component of the money stock less the amount 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 1980 1981 1982 1983 Dec. Dec. Dec. Dec. Feb. Mar. Apr. May Seasonally adjusted 1 Ml 414.9 441.9 480.5 525.3 532.9 535.2' 535.4' 541.0 2 M2 1,632.6 1,796.6 1,965.3 2,196.2' 2,222.5' 2,230.0' 2,242.9' 2,259.3 3 M3 1,989.8 2,236.7 2,460.3 2,706.7 2,744.8' 2,766.0' 2,791.1' 2,815,9 4 L 2,326.0 2,598.4 2,868.7 3,176.9 3,227.3' 3,269.5' 3,297.9 n.a. 5 Debt2 3,946.9 4,323.8 4,710.1 5,203.9' 5,317.2' 5,371.2' 5,430.9 n.a. Ml components 6 Currency2 116.7 124.0 134.1 148.0 150.2 150.9 151.8 152.9 7 Travelers checks3 4.2 4.3 4.3 4.9 5.0 5.0 5.1 5.1 8 Demand deposits4 266.5 236.2 239.7 243.7 243.8 244.0 245.3' 245.2 9 Other checkable deposits5 27.6 77.4 102.4 128.8 133.8 135.3 133.2' 137.8 Nontransactions components 10 In M26 1,217.7 1,354.6 1,484.8 l^O.y 1,689.fr 1,694.8' 1,707.5' 1,718.3 11 In M3 only7 357.2 440.2 495.0 510.6 522.3' 536.0 548.2' 556.5 Savings deposits9 12 Commercial Banks 185.9 159.7 164.9 134.6 130.1 128.9 128.6 128.2 13 Thrift Institutions 215.6 186.1 197.2 178.2 176.5 176.6 176.8 177.0 Small denomination time deposits9 14 Commerical Banks 287.5 349.6 382.2 353.1 352.8 353.5 355.9' 360.4 15 Thrift Institutions 443.9 477.7 474.7 440.0 448.1 449.9 452.4' 457.2 Money market mutual funds 16 General purpose and broker/dealer 61.6 150.6 185.2 138.2 142.1 144.8 146.1 146.6 17 Institution-only 15.0 36.2 48.4 40.3 41.6 41.8 41.8 42.0 Large denomination time deposits10 18 Commercial Banks11 213.9 247.3 261.8 225.5 228.3 232.8' 236.3 243.5 19 Thrift Institutions 44.6 54.3 66.1 100.4 111.9 115.5 119.4 123.4 Debt components 20 Federal debt 742.8 830.1 991.4 1,174.0' 1,213.1' 1,220.7' 1,233.6 n.a. 21 Non-federal debt 3,204.1 3,493.7 3,718.7 4,029.9' 4,104.0' 4,150.5' 4,197.3 n.a. Not seasonally adjusted 22 Ml 424.8 452.3 491.9 537.8 521.9 528.1 543.2' 543.9 23 M2 1,635.4 1,798.7 1,967.4 2,198.0' 2,212.3' 2,230.9' 2,254.7' 2,254.3 24 M3 1,996.1 2,242.7 2,466.6 2,712.8 2,737.5' 2,767.2' 2,799.6' 2,811.2 25 L 2,332.8 2,605.6 2,876.5 3,184.7 3,228.7' 3,275.7' 3,309.4 n.a. 26 Debt2 3,946.9 4,323.8 4,710.1 S.W.C 5,301.7' 5,352.7' 5,408.3 n.a. Ml components 27 Currency2 118.8 126.1 136.4 150.5 148.3 149.8 151.5 152.9 28 Travelers checks3 3.9 4.1 4.1 4.6 4.7 4.8 4.8 5.0 29 Demand deposits4 274.7 243.6 247.3 251.6 237.9 239.4 247.8 241.3 30 Other checkable deposits5 27.4 78.5 104.1 131.2 130.9 134.1 139.0 135.7 Nontransactions components 31 M26 1,210.6 1,346.3 1,475.5 1,660.2' 1,690.5' 1,702.8' 1,711.5' 1,719.4 32 M3 only7 360.7 444.1 499.2 514.8 525.2' 536.3 544.9' 556.9 Money market deposit accounts 33 Commercial banks n.a. n.a. 26.3 230.0 238.3 242.6 245.3 244.3 34 Thrift institutions n.a. n.a. 16.6 145.9 147.7 149.9 151.0 150.4 Savings deposits8 35 Commercial Banks 183.8 157.5 162.1 132.0 129.9 130.2 130.5 129.9 36 Thrift Institutions 214.4 184.7 195.5 176.5 175.3 177.0 178.0 178.0 Small denomination time deposits9 37 Commercial Banks 286.0 347.7 380.1 351.0 355.4 356.0 356.4 360.3 38 Thrift Institutions 442.3 475.6 472.4 437.6 450.0 451.6 454.3' 458.2 Money market mutual funds 39 General purpose and broker/dealer 61.6 150.6 185.2 138.2 142.1 144.8 146.1 146.6 40 Institution-only 15.0 36.2 48.4 40.3 41.6 41.8 41.8 42.0 Large denomination time deposits10 41 Commercial Banks11 218.5 252.1 266.2 229.0 229.7 233.1 233.6' 241.4 42 Thrift Institutions 44.3 54.3 66.2 100.7 111.2 114.2 118.0 122.9 Debt components 43 Federal debt 742.8 830.1 991.4 1,170.2' 1,210.7' 1,223.6' 1,235.9 n.a. 44 Non-federal debt 3,204.1 3,943.7 3,718.7 4,026.8' 4,090.9' 4,129.1' 4,172.4 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 • July 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 group, ur lype 01 customer 11998811'' 11998822'' 1199883311 Dec. Jan. Feb. Mar. Apr. May DEBITS TO Seasonally adjusted Demand deposits2 1 All insured banks 80,858.7 90,914.4 108,646.4 115,381.5 120,954.6 126,749.9 116,416.7 129,229.4 131,456.9 2 Major New York City banks 33,891.9 37,932.9 47,336.9 48,255.7 51,952.5 55,776.7 50,765.2 57,868.3 60,351.3 3 Other banks 46,966.9 52,981.6 61,309.5 67,125.8 69,002.2 70,973.1 65,651.5 71,361.1 71,105.6 4 ATS-NOW accounts3 743.4 1,036.2 1,394.9 1,499.6 1,345.1 1,491.1 1,464.9 1,432.1 1,608.9 5 Savings deposits4 672.7 721.4 735.7 661.4 620.8 708.3 688.9 606.5 688.8 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 285.8 324.2 376.8 395.7 414.2 434.7 394.9 441.7 442.7 7 Major New York City banks 1,105.1 1,287.6 1,512.0 1,541.4 1,650.9 1,747.7 1,649.5 2,012.5 1,938.7 8 Other banks 186.2 211.1 238.5 257.9 264.9 273.3 248.7 270.5 267.5 9 ATS-NOW accounts3 14.0 14.5 15.5 15.9 13.8 15.0 14.7 14.6 16.0 10 Savings deposits4 4.1 4.5 5.3 5.0 4.7 5.5 5.4 4.8 5.5 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 81,197.9 91,031.9 108,459.5 122,558.3 123,567.2 114,721.3 124,088.6 121,514.4 132,521.7 12 Major New York City banks 34,032.0 38,001.0 47,238.2 52,418.5 52,895.2 50,724.8 54,301.1 53,514.4 60,214.5 13 Other banks 47,165.9 53,030.9 61,221.3 70,139.7 70,672.0 63,996.5 69,787.5 68,000.0 72,307.2 14 ATS-NOW accounts3 737.6 1,027.1 1,387.5 1,465.4 1,601.5 1,389.5 1,504.3 1,670.1 1,599.0 15 MMDA5 0 0 567.4 745.8 793.4 682.1 790.3 918.9 883.6 16 Savings deposits4 672.9 720.0 736.4 647.1 672.5 649.9 711.9 665.7 673.8 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 286.1 325.0 376.1 407.0 412.3 402.7 431.8 410.8 456.8 18 Major New York City banks 1,114.2 1,295.7 1,510.0 1,613.6 1,581.5 1,618.7 1,795.5 1,770.2 1,997.1 19 Other banks 186.2 211.5 238.1 261.1 265.4 252.4 271.4 256.0 278.1 20 ATS-NOW accounts3 14.0 14.3 15.4 15.1 16.2 14.3 15.2 16.4 16.1 21 MMDA5 0 0 2.8 3.3 3.4 2.9 3.3 3.8 3.6 22 Savings deposits4 4.1 4.5 5.3 4.9 5.2 5.1 5.5 5.2 5.3 1. Annua) 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 Digitized for FnRonAfinSanEcRial debt is the Federal Reserve Board's flow of funds accounts. Debt Research and Statistics, Board of Governors of the Federal Reserve System, http://fraser.sdtlaotau aisref eodn .aonr gen/d -of-month basis. Washington, D.C. 20551. Federal Reserve Bank of St. Louis

Commercial Banks A15 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1982 1983 1984 1982 1983 1984 CCaatteeggoorryy Dec. Dec. Feb.' Mar/ Apr/ May Dec. Dec. Feb.' Mar. Apr.' May Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,412.0 1,568.1 1,604.9 1,622.1 1,630.6 1,650.8 1,422.4 1,579.5 1,600.2 l,616.6r 1,630.1 1,643.7 2 U.S. Treasury securities 130.9 188.0 188.3 187.1 185.9 187.4 131.5 188.8 189.0 189.8 189.2 186.6 3 Other securities 239.2 247.5 252.2 253.1 250.5 249.7 240.6 249.0 251.6 252.5' 250.4 249.9 4 Total loans and leases3 11,,004422..00 11,,113322..66 11,,116644..44 1,181.9 1,194.3 1,213.6 1,050.3 1,141.7 1,159.5 1,174.2' 1,190.4 1,207.2 5 Commercial and industrial loans 392.3 413.4 423.7 433.8 437.0 447.3 394.5 415.8 422.0 432.6 439.4 447.5 6 Real estate loans 303.1 335.5 343.1 346.7 350.5 354.6 304.0 336.5 342.7 345.7 349.4 353.2 7 Loans to individuals 191.9 219.7 227.6 231.4 235.3 239.6 193.2 221.2 226.9 229.3' 233.6 238.1 8 Security loans 24.7 27.3 30.8 27.3 26.9 27.5 25.5 28.2 29.7 26.5' 26.9 26.5 9 Loans to nonbank financial institutions 31.1 29.7 30.5 30.6 30.9 31.6 32.1 30.6 30.6 30.2 30.7 31.3 10 Agricultural loans 36.3 39.6 40.0 40.2 40.6 40.8 36.3 39.6 39.4 39.4 39.9 40.6 11 Lease financing receivables... 13.1 13.1 13.5 13.5 13.5 13.6 13.1 13.1 13.5 13.5 13.5 13.6 12 All other loans 49.5 54.3 55.1 58.4 59.7 58.6 51.5 56.5 54.6 57.1' 57.1 56.4 MEMO 13 Total loans and securities plus loans sold3'4 1,415.0 1,570.5 1,607.4 1,625.2 1,633.8 1,653.6 1,425.4 1,581.8 1,602.7 1,619.7' 1,633.2 1,646.6 14 Total loans plus loans sold3'4 ... 1,044.9 1,135.0 1,166.9 1,185.0 1,197.4 1,216.5 1,053.3 1,144.0 1,162.0 1,177.3' 1,193.6 1,210.1 15 Total loans sold to affiliates3'4... 2.9 2.4 2.5 3.1 3.1 2.8 2.9 2.4 2.5 3.1 3.1 2.8 16 Commercial and industrial loans plus loans sold4 394.5 415.3 425.6 435.8 438.9 449.3 396.8 417.7 423.8 434.5 441.3 449.4 17 Commercial and industrial loans sold4 2.3 1.8 1.9 1.9 1.9 2.0 2.3 1.8 1.9 1.9 1.9 2.0 18 Acceptances held 8.5 8.3 8.5 9.4 9.6 9.9 9.5 9.1 8.6 9.0 8.8 9.3 19 Other commercial and industrial loans 383.7 405.2 415.2 424.4 427.4 437.4 385.1 406.8 413.3 423.6' 430.6 438.2 20 To U.S. addressees5 373.4 395.1 403.2 412.2 415.4 424.6 372.6 394.3 401.3 411.6 418.7 426.4 21 To non-U.S. addressees.... 10.3 10.1 12.1 12.2 12.0 12.8 12.4 12.5 12.0 12.0 11.8 11.7 22 Loans to foreign banks 13.5 12.7 13.2 12.8 13.0 12.7 14.5 13.6 13.0 12.5 12.5 12.2 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 • July 1984 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1981 1982 1983 1984 source Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar.' Apr.' May Total nondeposit funds 1 Seasonally adjusted2 96.3 82.9 78.0' 83.4' 85.4' 82.(K 96.3' 100.3 98.2 102.4 108.1 111.8 116.8 2 Not seasonally adjusted 98.1 84.9 78.7' 86.2' 86.5' 83.0' 99.fr 102.5' 99.2 103.8 109.6 113.0 121.1 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8 127.7 134.4' 132.7' 134.2' 135.2' 140.8' 140.7' 139.4 143.0 141.8 142.3 142.4 4 Not seasonally adjusted 113.5 129.7 135.1' 135.5' 135.3' 136.2' 144.1' 142.8' 140.4 144.4 143.3 143.5 146.7 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -47.7 -59.0 -51.8' -51.3' -55.7' -47.0 -42.7 -43.7 -43.1 -36.8 -33.7 -28.4 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 2.7 2.6 2.6 2.6 2.5 2.4 2.4 2.5 3.1 3.1 2.8 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -39.6 -50.8' -45.2' -46.3 -48.5 -43 .C -39.8' -38.8 -39.0 -34.9 -33.2 -29.9 8 Gross due from balances 54.9 72.2 77.4 73.6 74.7 76.4 76.5 75.3' 73.2 74.7 73.8 73.6 73.5 9 Gross due to balances 32.4 32.6 26.5 28.3 28.3 27.9 33.6 35.5 34.5 35.7 38.8 40.3 43.6 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -8.1 -8.0 -6.5' -5.C -7.2' -4.0' -3.0 -4.9 -4.1 -1.9 -0.5 1.5 11 Gross due from balances 48.1 54.7 55.2 53.6' 53.5 55.5' 53.5' 54.1' 53.5 52.9 50.1 49.6 49.8 12 Gross due to balances 52.4 46.6 47.1' 47.0 48.5' 48.3' 49.5' 51.1' 48.6 48.8 48.2 49.1 51.3 Security RP borrowings 13 Seasonally adjusted' 59.0 71.0 77.3 76.1 78.1 79.9 83.3 84.8 85.5 86.9 85.5 86.9 84.0 14 Not seasonally adjusted 59.2 71.2 76.2 77.0 77.3 79.1 84.6 85.1 84.6 86.5 85.1 86.2 86.4 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 12.8 21.7 20.3 16.7 18.9 12.0 13.1 16.5 20.6 16.7 15.9 12.2 16 Not seasonally adjusted 11.1 10.8 21.8 16.4 17.9 24.7 7.5 10.8 19.6 22.3 17.5 16.5 12.8 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 347.9 285.9 284.1 282.8 278.3 280.7 283.1 284.4 283.8 289.2 292.3 302.7 18 Not seasonally adjusted 330.4 354.6 281.5 284.4 284.7 280.3 283.0 288.1 287.1 285.0 288.8 288.7 298.6 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 11,,446666..11 11,,448833..00 11,,550022..33 11,,552255..22 2 Loans, excluding interbank 1,000.7 1,001.7 1,005.1 1,007.5 1,025.6 1,029.1 1,043.4 1,049.7 1,060.3 1,075.5 1,095.1 3 Commercial and industrial 356.7 358.0 357.9 356.7 360.1 361.1 363.0 364.0 367.0 372.8 380.8 4 Other 644.0 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 702.7 714.4 5 U.S. Treasury securities 129.0 150.6 155.5 160.9 166.0 165.1 167.5 171.2 176.8 180.4 181.4 6 Other securities 240.5 239.9 243.3 243.5 243.5 243.3 246.1 245.2 245.9 246.4 248.7 7 Cash assets, total 184.4 168.9 170.1 164.5 176.9 168.7 176.9 160.0 164.0 179.0 190.5 8 Currency and coin 23.0 19.9 20.4 20.3 21.3 20.7 21.0 20.8 20.5 22.3 23.3 9 Reserves with Federal Reserve Banks 25.4 20.5 23.9 22.4 18.8 20.6 22.5 15.4 19.7 17.6 18.6 10 Balances with depository institutions . 67.6 67.1 66.1 65.6 69.7 67.1 69.0 66.7 67.1 70.9 75.6 11 Cash items in process of collection ... 68.4 61.5 59.6 56.3 67.1 60.3 64.4 56.9 56.6 69.0 73.0 12 Other assets2 265.3 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 261.9 253.8 13 Total assets/total liabilities and capital ... 1,820.0 1,818.9 1,826.3 1,824.8 1,865.2 1,860.6 1,891.0 1,878.4 1,900.0 1,943.9 1,969.5 14 Deposits 1,361.8 1,374.2 1,368.0 1,370.8 1,402.7 1,396.5 1,420.1 1,408.1 1,419.5 1,459.2 1,482.6 15 Demand 363.9 333.4 329.2 324.5 344.4 334.2 344.7 328.1 331.3 358.1 371.0 16 Savings 296.4 419.2 426.9 440.2 445.3 447.5 449.0 448.8 451.5 458.3 460.7 17 Time 701.5 621.6 611.9 606.1 613.1 614.8 626.4 631.2 636.8 642.8 650.8 18 Borrowings 215.1 211.3 224.0 214.1 221.2 217.5 217.2 217.8 226.8 219.7 216.3 19 Other liabilities 109.2 103.5 102.3 104.7 104.3 105.5 107.6 107.1 106.5 112.6 117.9 20 Residual (assets less liabilities) 133.8 130.0 132.0 135.1 137.0 141.0 146.1 145.4 147.2 152.4 152.8 MEMO 21 U.S. Treasury note balances included in borrowing 10.7 9.6 17.8 2.7 19.3 19.3 14.8 2200..88 2222..55 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 Domestic Nonfinancial Statistics • July 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 May 2 May 9 May 16 May 23 May 3(K June 6 June 13 June 20 June 27 1 Cash and balances due from depository institutions 93,873 90,176 91,476 86,033 %,546 87,590 86,757 %,991 87,402 2 Total loans, leases and securities, net 755,804' 754,896' 756,678 756,074 760,223 765,046 757,888 763,422 758,255 Securities 3 U.S. Treasury and government agency 77,977 75,966 75,670 75,140 76,834 75,000 73,596 72,234 72,167 4 Trading account 11,522 9,887 10,266 10,284 11,797 9,934 8,932 7,749 7,630 5 Investment account, by maturity 66,455 66,079 65,404 64,855 65,037 65,067 64,664 64,485 64,537 6 One year or less 18,129 17,578 17,098 16,695 17,071 17,486 16,916 16,892 16,521 7 Over one through five years 35,622 35,764 35,879 35,746 35,684 35,423 35,551 35,462 35,665 8 Over five years 12,704 12,738 12,427 12,414 12,283 12,158 12,198 12,130 12,350 9 Other securities 50,394 49,734 49,308 49,005 48,892 48,785 48,385 47,466 47,405 10 Trading account 6,090 5,467 5,055 4,592 4,462 4,658 4,336 4,002 4,113 11 Investment account 44,304 44,268 44,253 44,413 44,430 44,128 44,049 43,464 43,291 12 States and political subdivisions, by maturity 40,155 40,115 40,066 40,196 40,250 40,145 40,099 39,811 39,647 13 One year or less 4,850 4,808 4,758 4,782 4,830 4,798 4,675 4,439 4,432 14 Over one year 35,305 35,307 35,309 35,413 35,420 35,347 35,424 35,372 35,215 15 Other bonds, corporate stocks, and securities 4,149 4,153 4,186 4,218 4,180 3,982 3,950 3,653 3,644 16 Other trading account assets 2,751 2,435 1,960 1,882 1,932 2,292 2,261 2,265 2,256 Loans and leases 17 Federal funds sold1 42,471 45,551 44,750 44,484 44,043 48,558 43,695 48,661 42,525 18 To commercial banks 27,896' 31,640 30,309' 30,278' 30,021 36,477 31,475 35, %1 29,093 19 To nonbank brokers and dealers in securities 9,746' 8,827 9,213' 8,637' 8,397 7,870 7,618 8,173 8,297 20 To others 4,829 5,083 5,228 5,568 5,625 4,211 4,602 4,527 5,135 21 Other loans and leases, gross 596,941' 596,012' 599,844' 600,503' 603,435 605,431 604,948 607,810 608,884 22 Other loans, gross 585,34(K 584,416' 588,231' 588,948' 591,857 593,765 593,286 596,136 597,194 23 Commercial and industrial 236,793' 239,225' 240,681' 240,531' 239,798 240,929 240,868 243,101 243,810 24 Bankers acceptances and commercial paper 3,547 3,748 3,629 3,640 3,907 3,650 3,916 3,730 4,035 25 All other 233,246' 235,477' 237,052' 236,892' 235,892 237,279 236,952 239,372 239,775 26 U.S. addressees 226,706' 228,932' 230,384' 230,186' 229,309 230,843 230,463 233,021 233,334 27 Non-U.S. addressees 6,540 6,545 6,668 6,705 6,583 6,436 6,489 6,350 6,442 28 Real estate loans 148,413' 148,58C 148,897' 149,110' 149,262 149,543 150,501 150,492 150,791 29 To individuals for personal expenditures 96,325' 96,317' 96,885' 97,168' 97,604 97,937 97,%7 98,850 99,362 30 To depository and financial institutions 41,282' 40,282' 41,329' 41,093' 42,214 42,152 41,618 40,523 40,912 31 Commercial banks in the United States 8,870 7,976 9,305 9,264 9,800 9,456 9,737 8,828 9,269 32 Banks in foreign countries 7,012 6,5% 6,668 6,630 6,635 6,774 6,363 6,103 6,364 33 Nonbank depository and other financial institutions. 25,401' 25,710' 25,356' 25,198' 25,779 25,922 25,518 25,591 25,278 34 For purchasing and carrying securities 13,872 12,059 12,484 13,183' 14,479 14,487 13,841 14,100 13,103 35 To finance agricultural production 7,517 7,612' 7,604 7,604 7,587 7,649 7,718 7,791 7,785 36 To states and political subdivisions 22,583' 22,808' 22,709 22,862 23,053 23,520 23,668 23,824 23,894 37 To foreign governments and official institutions 4,217' 4,234' 4,201' 4,038' 4,022 4,010 4,050 4,030 3,995 38 All other 14,337' 13,299' 13,441' 13,357' 13,837 13,536 13,054 13,424 13,542 39 Lease financing receivables 11,601' l l^ 11,613' 11,555' 11,578 11,666 11,662 11,674 11,690 40 LESS: Unearned income 5,094' 5,118' 5,147' 5,143 5,127 5,118 5,133 5,134 41 Loan and lease reserve 9,670 9,709 9,736 9,792 9,769 9,894 9,879 9,882 9,847 42 Other loans and leases, net 582,211' 581,209' 584,990 585,564 588,522 590,410 589,951 592,795 593,903 43 All other assets 141,192' 141,945 142,068 136,555' 134,836 140,670 137,689 139,404 140,318 44 Total assets 990,869' 987,017' 990,222 978,662' 991,605 993,307 982,335 999,817 985,975 Deposits 45 Demand deposits 185,550 174,058 187,606 172,574 185,051 180,246 180,272 180,524 177,565 46 Individuals, partnerships, and corporations 140,884 133,822 141,986 132,751 140,804 137,820 140,526 136,733 135,144 47 States and political subdivisions 5,854 4,424 4,867 4,526 4,623 4,669 4,261 5,041 4,694 48 U.S. government 1,307 1,068 2,463 2,076 1,076 1,879 1,366 4,066 2,320 49 Depository institutions in United States 22,118 20,364 22,509 19,522 22,562 21,132 19,869 21,348 20,828 50 Banks in foreign countries 6,272 6,106 6,263 6,014 6,585 6,355 5,772 5,618 6,226 51 Foreign governments and official institutions 948 857 1,088 792 845 791 798 816 788 52 Certified and officers' checks 8,166 7,418 8,430 6,892 8,557 7,600 7,681 66,,990011 77,,556655 53 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers).. 33,236 33,211 32,984 32,408 32,673 34,386 33,569 32,700 31,974 54 Nontransaction balances 414,606 417,7% 420,440 424,671 426,900 428,718 429,317 428,785 431,272 55 Individuals, partnerships and corporations 385,469' 388,313' 390,066' 393,353' 395,662 397,890 398,419 397,579 399,495 56 States and political subdivisions 18,392 18,726 19,149 19,742 19,530 19,057 19,352 19,240 19,463 57 U.S. government 373' 360' 356' 365 342 338 321 334 314 58 Depository institutions in the United States 7,060' 7,176' 7,343' 7,898' 8,103 7,957 7,733 8,144 8,326 59 Foreign governments, official institutions and banks .. 3,311 3,221 3,526 3,314 3,264 3,474 3,491 3,488 3,674 60 Liabilities for borrowed money 188,887' 194,588' 181,260 180,249 180,297 187,036 176,689 194,222 177,579 61 Borrowings from Federal Reserve Banks 170 2,078 4,827 2,416 1,857 3,915 1,950 3,690 2,466 62 Treasury tax-and-loan notes 16,781' 13,823' 3,303 563 2,960 2,748 2,066 15,719 11,108 63 All other liabilities for borrowed money2 171,936' 178,687' 173,130' 177,270 175,480 180,373 172,673 174,813 164,005 64 Other liabilities and subordinated note and debentures 101,926' 100,445 101,080 101,488' 99,603 94,922 94,689 96,152 100,297 65 Total liabilities 924,206' 920,099' 923,370 911,391' 924,525 925,308 914,537 932,384 918,688 66 Residual (total assets minus total liabilities)3 66,663 66,917 66,852 67,271 67,080 67,999 67,797 67,433 67,287 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. 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 May 2 May 9 May 16 May 23 May 30 June 6 June 13 June 20 June 27 1 Cash and balances due from depository institutions 20,088 21,533 22,789 19,903 22,490 19,721 19,170 23,327 20,276 2 Total loans, leases and securities, net1 159,284' 159,760' 160,726 162,662 164,164 163,778 160,949 164,208 162,990 Securities Investment account, by maturity 10,082 10,023 10,120 10,064 10,142 9,840 9,765 9,632 9,494 6 One year or less 2,041 1,912 1,885 1,831 1,905 1,791 1,719 1,637 1,498 7 Over one through five years 6,652 6,746 7,100 7,090 7,090 6,897 6,895 6,847 6,848 8 Over five years 1,389 1,364 1,136 1,143 1,148 1,152 1,151 1,149 1,149 q 11 Investment account 9,788 9,731 9,690 9,669 9,699 9,638 9,535 9,451 9,431 1? States and political subdivisions, by maturity 8,940 8,884 8,873 8,881 8,968 8,959 8,845 8,770 8,751 13 One year or less 1,511 1,485 1,473 1,492 1,572 1,563 1,445 1,380 1,355 14 Over one year 7,429 7,399 7,400 7,389 7,396 7,396 7,400 7,391 7,397 15 Other bonds, corporate stocks and securities 849 847 817 788 731 679 690 681 679 Loans and leases 17 Federal funds sold3 12,463 14,462 13,564 15,020 14,771 14,187 12,286 15,575 14,462 18 To commercial banks 5,530 7,784 6,802 8,152 7,283 8,463 6,442 9,1% 8,056 19 To nonbank brokers and dealers in securities 4,755 4,118 3,921 4,032 4,324 3,617 3,426 3,848 3,660 70 To others 2,178 2,560 2,842 2,836 3,164 2,106 2,418 2,531 2,746 71 Other loans and leases, gross 131,339' 129,959' 131,791 132,422 134,033 134,655 133,924 134,123 134,126 7? Other loans, gross 129,316' 127,937' 129,765 130,402 132,011 132,615 131,894 132,080 132,083 23 Commercial and industrial 62,428' esjsor 63,751' 63,334' 63,16c 64,118 63,821 64,432 64,246 24 Bankers acceptances and commercial paper 879 818 966 844 948 800 870 763 736 75 All other 61,548' 62,332' 62,786' 62,489' 62,213' 63,319 62,951 63,668 63,511 76 U.S. addressees 60,378' 61,138' 61,465' 61,110' 60,902' 62,029 61,682 62,408 62,329 77 Non-U.S. addressees 1,170 1,195 1,321 1,379 1,310 1,290 1,269 1,261 1,182 78 Real estate loans 21,523' 21,628' 21,716' 21,807' 21,866' 21,925 22,056 22,235 22,171 29 To individuals for personal expenditures 14,462' 14,473' 14,540' 14,557' 14,605' 14,752 14,721 14,794 14,846 30 To depository and financial institutions 12,375 11,486 12,238 12,262 12,732 12,782 12,638 11,791 12,224 31 Commercial banks in the United States 1,657 1,175 1,667 1,816 2,010 2,014 2,265 1,696 2,010 32 Banks in foreign countries 2,487 1,967 2,367 2,294 2,187 2,402 2,125 1,875 2,016 33 Nonbank depository and other financial institutions. 8,231 8,344 8,204 8,152 8,534 8,366 8,248 8,221 8,197 34 For purchasing and carrying securities 7,006 5,779 6,113 6,740' 7,888' 7,382 7,114 6,838 6,598 35 To finance agricultural production 542 552 549 531 520 510 497 507 474 36 To states and political subdivisions 6,455' 6,626' 6,584 6,726 6,732 7,101 7,168 7,282 7,332 37 To foreign governments and official institutions .... 428 451 516 389 406 393 381 396 388 38 All other 4,098 3,793 3,758 4,055 4,101 3,650 3,500 3,804 3,803 39 Lease financing receivables 2,023 2,022 2,027 2,020 2,022 2,041 2,030 2,042 2,043 40 LESS: Unearned income 1,471 1,492 1,509 1,530 1,522 1,521 1,530 1,532 1,516 41 Loan and lease reserve 2,917 2,922 2,931 2,984 2,960 3,022 3,031 3,042 3,008 4? Other loans and leases, net 126,951' 125,544' 127,351 127,908 129,551 130,113 129,363 129,549 129,602 43 All other assets4 67,752 65,922 66,542 63,750 63,430 67,309 66,050 63,981 63,328 44 Total assets 247,125' 247,215' 250,056 246,315 250,084 250,808 246,169 251,516 246,594 Deposits 45 Demand deposits 46,035 44,044 49,479 43,829 47,373 44,406 44,273 45,136 45,490 46 Individuals, partnerships, and corporations 31,917 30,159 32,657 30,398 32,016 29,766 30,731 31,130 30,558 47 States and political subdivisions 612 544 706 627 563 637 541 737 696 48 U.S. government 200 184 606 442 175 419 265 765 547 49 Depository institutions in the United States 4,466 4,689 5,451 4,170 4,554 4,722 4,262 4,635 4,783 50 Banks in foreign countries 4,913 4,767 4,918 4,752 5,194 4,992 4,426 4,337 4,856 51 Foreign governments and official institutions 740 660 842 564 618 594 547 618 583 5? Certified and officers' checks 3,188 3,040 4,298 2,875 4,252 3,276 3,501 2,913 3,466 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) .. 3,764 3,699 3,740 3,658 3,651 3,803 3,745 3,666 3,606 54 Nontransaction balances 72,072 72,684 73,780 74,593 76,050 76,875 77,285 77,490 78,482 55 Individuals, partnerships and corporations 65,547 66,208 66,514 67,159 68,522 69,189 69,614 69,591 70,222 56 States and political subdivisions 2,246 2,276 2,434 2,585 2,601 2,608 2,747 2,936 2,961 57 U.S. government 29 29 34 35 28 30 30 31 34 58 Depository institutions in the United States 2,554 2,596 2,896 3,151 3,283 3,222 2,985 3,042 3,235 59 Foreign governments, official institutions and banks .. 1,696 1,575 1,903 1,664 1,615 1,826 1,908 1,890 2,028 60 Liabilities for borrowed money 61,166' 63,098' 58,956 58,800 59,448 64,272 59,237 63,152 54,414 61 953 925 575 750 62 Treasury tax-and-loan notes 4,284 3,519 888 83 913 678 520 4,005 2,760 63 All other liabilities for borrowed money5 56,882' 58,626' 58,067 57,792 58,536 63,020 58,717 58,397 51,654 64 Other liabilities and subordinated note and debentures.. 42,428 41,856 42,294 43,313 41,629 39,040 39,404 40,046 42,691 65 Total liabilities 225,465' 225,382' 228,250 224,193 228,152 228,396 223,944 229,491 224,682 66 Residual (total assets minus total liabilities)6 21,660 21,832 21,806 22,122 21,932 22,411 22,225 22,025 21,912 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 • July 1984 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1984 AAccccoouunntt May 2' May 9' May 16 May 23' May 3C June 6 June 13 June 20 June 27 BANKS WITH ASSETS OF $1.4 BILLION OR MORE 1 Total loans and leases (gross) and investments adjusted1 733,769 730,081 731,918' 731,471 735,314 734,133 731,674 733,647 734,873 2 Total loans and leases (gross) adjusted1 602,647 601,946 604,980' 605,444 607,656 608,056 607,431 611,682 613,046 3 Time deposits in amounts of $100,000 or more 142,386 144,738 146,776' 150,990 152,853 153,412 154,512 154,256 156,594 4 Loans sold outright to affiliates—total2 3,126 3,125 3,122 2,549 2,518 2,557 2,618 2,675 2,741 5 Commercial and industrial 1,983 1,964 2,005 1,933 1,914 1,952 1,929 1,940 1,960 6 Other 1,144 1,161 1,116 616 603 605 689 735 781 7 Nontransaction savings deposits (including MMDAs)... 155,085 155,406 155,634 155,224 155,357 155,819 155,195 154,363 154,108 BANKS IN NEW YORK CITY 8 Total loans and leases (gross) and investments adjusted1,3 .. 156,485 155,216 156,697 157,207 159,352 157,843 156,804 157,889 157,448 9 Total loans and leases (gross) adjusted1 136,615 135,462 136,887 137,474 139,510 138,365 137,503 138,806 138,522 10 Time deposits in amounts of $100,000 or more 29,084 29,739 30,397 31,273 32,668 33,266 33,894 34,118 34,710 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 May 2 May 9 May 16 May 23 May 3C June 6 June 13 June 20 June 27 1 Cash and due from depository institutions. 6,570 7,013 6,865 6,748 6,489 7,310 6,764 7,394 6,858 2 Total loans and securities 45,572 45,474 46,084 45,941 47,286 46,507 45,894 46,374 46,985 3 U.S. Treasury and govt, agency securities1 4,429 4,458 4,453 4,331 4,395 4,610 4,556 4,466 4,339 4 Other securities1 786 788 790 786 789 780 784 802 798 5 Federal funds sold2 4,421 4,389 4,366 4,083 4,748 3,360 3,488 3,382 4,328 6 To commercial banks in the United States 4,224 4,145 4,095 3,790 4,467 3,128 3,335 3,250 3,928 7 To others 198 244 270 293 281 232 153 132 400 8 Other loans, gross 35,936 35,839 36,476 36,741 37,354 37,756 37,066 37,724 37,520 9 Commercial and industrial 19,693 20,095 20,297 19,888 20,153 20,513 20,034 20,320 20,321 10 Bankers acceptances and commercial paper 3,298 3,264 3,366 3,266 3,215 3,162 3,261 3,234 3,312 11 All other 16,396 16,831 16,931 16,622 16,938 17,350 16,773 17,086 17,008 12 U.S. addressees 14,737 15,161 15,256 14,994 15,295 15,694 15,151 15,423 15,320 13 Non-U.S. addressees 1,659 1,669 1,675 1,628 1,643 1,656 1,622 1,663 1,689 14 To financial institutions 12,614 12,408 12,797 13,380 13,601 13,742 13,455 14,039 13,989 15 Commercial banks in the United States. 10,618 10,324 10,791 11,319 11,400 11,640 11,353 11,966 11,714 16 Banks in foreign countries 1,384 1,420 1,411 1,404 1,456 1,470 1,399 1,348 1,450 17 Nonbank financial institutions 612 664 595 657 745 632 703 726 825 18 To foreign govts, and official institutions3.. 801 800 802 806 812 803 789 760 760 19 For purchasing and carrying securities .. 949 676 712 821 951 828 839 664 643 20 All other3 1,879 1,860 1,869 1,847 1,838 1,869 1,949 1,940 1,807 21 Other assets (claims on nonrelated parties) 14,652 15,105 15,376' 16,000 15,267 15,691 15,940 15,953 15,376 22 Net due from related institutions 9,415 10,290 10,245' 10,141 9,764 11,428 11,774 11,767 11,498 23 Total assets 76,209 77,882 78,570 78,830 78,806 80,937 80,372 81,488 80,717 24 Deposits or credit balances due to other than directly related institutions 20,389 21,010 21,054 21,858 21,770 21,766 21,897 21,880 22,357 25 Credit balances 138 145 186 135 169 143 127 112 132 26 Demand deposits 1,881' 1,907 1,839' 1,913' 1,792 1,797 1,572 1,901 1,677 27 Individuals, partnerships, and corporations 842' 771 812' 807' 881 791 802 806 799 28 Other 1,038 1,136 1,027 1,106 912 1,006 769 1,095 878 29 Time and savings deposits 18,37(K 18,957 19,029' 19,810' 19,808 19,826 20,198 19,867 20,548 30 Individuals, partnerships, and corporations 15,168' 15,831 15,912' 16,678' 16,625 16,494 16,894 16,472 17,105 31 Other 3,202 3,126 3,117 3,132 3,184 3,332 3,304 33,,339955 3,444 32 Borrowings from other than directly related institutions 32,273 33,530 33,474 32,456' 32,226 35,404 34,090 34,990 33,907 33 Federal funds purchased4 9,223 9,983 8,513 7,176' 7,508 11,363 10,258 10,836 8,770 34 From commercial banks in the United States 6,275 6,829 5,786' 4,325' 4,718 8,757 7,811 8,066 5,976 35 From others 2,948 3,154 2,727' 2,850 2,791 2,606 2,447 2,770 2,794 36 Other liabilities for borrowed money 23,050 23,547 24,961 25,280 24,718 24,041 23,832 24,154 25,136 37 To commercial banks in the United States 19,768 20,171 21,424 21,756 21,286 20,817 20,372 20,471 21,064 38 To others 3,282 3,376 3,536 3,524 3,432 3,224 3,459 3,683 4,072 39 Other liabilities to nonrelated parties 15,452 15,684 16,067 16,471 15,803 16,265 16,418 16,477 15,872 40 Net due to related institutions 8,095 7,659 7,974 8,045' 9,006 7,502 7,967 8,140 8,581 41 Total liabilities 76,209 77,882 78,570 78,830 78,806 80,937 80,372 81,488 80,717 MEMO 42 Total loans (gross) and securities adjusted5 30,730 31,005 31,198 30,832 31,419 31,738 31,207 31,158 31,343 43 Total loans (gross) adjusted5 25,515 25,758 25,956 25,715 26,236 26,348 25,867 25,890 26,207 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 Digitized for FrRepAorStedE aRs a separate item. Before that date it was included in all other loans. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A21 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 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 All holders—Individuals, partnerships, and corporations 290.0 302.3 315.5 288.9 291.7 272.0 281.9 280.3 293.5 279.3 2 Financial business 27.0 27.1 29.8 28.0 35.4 32.7 34.6 32.1 32.8 31.7 3 Nonfinancial business 146.9 157.7 162.8 154.8 150.5 139.9 146.9 150.2 161.3 150.3 4 Consumer 98.2 99.2 102.4 86.6 85.9 79.4 80.3 77.9 78.5 78.1 5 Foreign 2.8 3.1 3.3 2.9 3.0 3.1 3.0 2.9 3.3 3.3 6 Other 15.1 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 127.6 139.3 147.4 137.5 144.2 133.0 139.6 136.3 146.2 139.2 8 Financial business 18.2 20.1 21.8 21.0 26.7 24.3 26.1 23.6 24.2 23.5 9 Nonfinancial business 67.2 74.1 78.3 75.2 74.3 68.9 72.8 72.9 79.8 76.4 10 Consumer 32.8 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 6.8 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 DomesticN onfinancial Statistics • July 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 . 1 D 19 e 8 c 0 . D 19 e 8 c 1 . D 1 e 9 c 82 .2 Dec. Jan. Feb. Mar. Apr. May Commercial paper (seasonally adjusted unless noted otherwise) 1 All issuers 83,438 112,803 124,374 165,829 166,670 185,852 184,419 190,808 200,631 209,535 213,136 Financial companies3 Dealer-placed paper4 2 Total 12,181 17,359 19,599 30,333 34,634 4411,,668888 39,884 4411,,336633 4433,,116677 4466,,009911 4455,,339977 3 Bank-related (not seasonally adjusted) 3,521 2,784 3,561 6,045 2,516 2,441 2,087 1,765 11,,776677 11,,886655 11,,66%% Directly placed paperJ 4 Total 51,647 64,757 67,854 8811,,666600 84,130 9966,,554488 9988,,449955 110022,,660066 110077,,442211 110099,,337766 111100,,779911 5 Bank-related (not seasonally adjusted) 12,314 17,598 22,382 26,914 32,034 35,566 37,636 36,958 39,617 41,881 46,338 6 Nonfinancial companies6 19,610 30,687 36,921 53,836 47,906 47,616 46,040 46,839 50,043 54,068 56,948 Bankers dollar acceptances (not seasonally adjusted) 7 Total 33,700 45,321 54,744 69,226 79,543 78,309 73,450 74,367 73,221 78,457 79,530 Holder 8 Accepting banks 8,579 9,865 10,564 10,857 10,910 9,355 9,546 9,237 8,734 11,160 9,927 9 Own bills 7,653 8,327 8,963 9,743 9,471 8,125 7,814 7,897 7,040 9,029 8,422 10 Bills bought 927 1,538 1,601 1,115 1,439 1,230 1,732 1,340 1,694 22,,113311 11,,550044 Federal Reserve Banks 11 Own account 587 704 776 195 1,480 418 0 0 0 305r 0 12 Foreign correspondents 664 1,382 1,791 1,442 949 729 729 777 896 834 679 13 Others 24,456 33,370 41,614 56,731 66,204 68,225 63,174 64,353 63,592 66,468r 68,925 Basis 14 Imports into United States 8,574 10,270 11,776 14,765 17,683 15,649 15,028 15,495 15,107 16,579 16,687 15 Exports from United States 7,586 9,640 12,712 15,400 16,328 16,880 16,159 15,818 15,572 16,283' 15,938 16 All other 17,541 25,411 30,257 39,060 45,531 45,781 42,262 43,055 42,542 45,545r 46,906 1. A change in reporting instructions results in offsetting shifts in the dealer- financing; factoring, finance leasing, and other business lending; insurance placed and directly placed financial company paper in October 1979. underwriting; and other investment activities. 2. Effective Dec. 1,1982, there was a break in the commercial paper series. The 4. Includes all financial company paper sold by dealers in the open market. key changes in the content of the data involved additions to the reporting panel, 5. As reported by financial companies that place their paper directly with the exclusion of broker or dealer placed borrowings under any master note investors. agreements from the reported data, and the reclassification of a large portion of 6. Includes public utilities and firms engaged primarily in such activities as bank-related paper from dealer-placed to directly placed. communications, construction, manufacturing, mining, wholesale and retail trade, 3. Institutions engaged primarily in activities such as, but not limited to, transportation, and services. commercial, savings, and mortgage banking; sales, personal, and mortgage 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Average Month Average rate rate 1981—Nov. 24 16.00 1982—Oct. 7 13.00 1982—Jan. 15.75 1983—Apr.. 10.50 Dec. 1 15.75 14 12.00 Feb. 16.56 May, 10.50 Nov. 22 11.50 Mar. 16.50 June. 10.50 Apr. 16.50 July . 10.50 1982—Feb. 2 16.50 May 16.50 Aug. 10.89 18 17.00 1983—Jan. 11 11.00 June. 16.50 Sept. 11.00 23 16.50 Feb. 28 10.50 July 16.26 Oct.. 11.00 July 20 16.00 Aug. 8 11.00 Aug. 14.39 Nov. 11.00 29 15.50 Sept. 13.50 Dec. 11.00 Aug. 2 15.00 1984—Mar. 19 11.50 Oct. 12.52 16 14.50 Apr. 5 12.00 Nov. 11.85 1984—Jan. 11.00 18 14.00 May 8 12.50 Dec. 11.50 Feb., 11.00 23 13.50 June 25 13.00 Mar. 11.21 1983—Jan. 11.16 Apr. 11.93 Feb. 10.98 May 12.39 Mar. 10.50 June 12.58 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, May 7-11, 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) 38,733,851 1,071,948 786,804 947,786 2,643,636 987,715 32,295,962 2 Number of loans 194,776 135,176 23,944 14,370 15,327 1,503 4,456 3 Weighted-average maturity (months) 1.4 4.5 4.6 5.0 5.4 3.5 ..88 4 With fixed rates 1.0 3.8 4.0 3.0 4.1 2.1 ..77 5 With floating rates 2.1 6.0 5.4 7.0 6.3 4.6 11..11 6 Weighted-average interest rate (percent per annum) .. 12.45 14.93 14.46 14.41 13.86 13.37 1122..1122 7 Interquartile range1 11.82-12.75 13.95-15.87 13.70-15.39 13.80-14.94 13.24-14.37 12.68-13.88 11.75-12.36 8 With fixed rates 12.23 14.89 14.16 14.28 13.76 12.86 11.99 9 With floating rates 12.80 14.99 14.80 14.50 13.90 13.61 12.36 Percentage of amount of loans 10 With floating rate 39.2 3344..77 4466..22 5577..88 6677..44 6688..88 3355..44 11 Made under commitment 69.7 32.3 40.1 51.7 54.8 70.6 73.4 12 With no stated maturity 9.9 9.1 10.2 18.6 24.7 35.4 7.7 13 With one-day maturity 39.0 .1 .1 .1 .3 3.4 46.7 1-99 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 14 Amount of loans (thousands of dollars) 4,129,515 683,061 348,909 198,394 2,899,152 15 Number of loans 35,908 33,322 1,689 296 600 16 Weighted-average maturity (months) 47.9 42.8 46.1 45.2 49.4 17 With fixed rates 44.3 38.2 57.2 54.6 44.6 18 With floating rates 50.2 46.2 42.5 43.7 53.1 19 Weighted-average interest rate (percent per annum) .. 13.12 15.00 13.91 13.50 12.56 20 Interquartile range1 12.00-13.92 14.37-15.87 13.10-14.45 12.68-14.09 11.75-13.24 21 With fixed rates 12.58 14.98 14.03 12.75 11.94 22 With floating rates 13.49 15.02 13.87 13.62 13.04 Percentage of amount of loans 23 With floating rate 59.9 58.4 75.7 86.7 56.5 24 Made under commitment 75.4 37.0 57.1 74.5 86.7 1-24 25-49 50-99 500 and over CONSTRUCTION AND LAND DEVELOPMENT LOANS 25 Amount of loans (thousands of dollars) 2,567,543 211,528 118,448 163,406 890,297 1,183,865 26 Number of loans 32,938 22,087 3,012 2,292 4,563 984 27 Weighted-average maturity (months) 8.2 10.4 9.3 7.7 5.9 9.7 28 With fixed rates 7.9 12.7 9.3 6.1 4.2 11.0 29 With floating rates 8.5 5.8 9.1 11.8 8.5 8.6 30 Weighted-average interest rate (percent per annum) .. 13.76 15.04 14.78 14.71 13.92 13.19 31 Interquartile range1 13.22-14.50 14.37-15.79 14.75-15.03 14.37-15.57 13.24-14.50 12.02-14.09 32 With fixed rates 13.53 15.05 14.87 14.80 14.00 12.28 33 With floating rates 14.07 15.03 14.33 14.51 13.80 14.06 Percentage of amount of loans 34 With floating rate 43.2 35.3 1177..11 31.7 40.8 5500..77 35 Secured by real estate 72.6 95.4 98.3 97.8 78.7 57.8 36 Made under commitment 43.8 50.0 18.0 25.1 37.9 52.2 37 With no stated maturity 9.5 3.7 33.6 5.8 3.4 13.1 38 With one-day maturity .0 .0 .1 .6 .0 .0 Type of construction 39 1- to 4-family 28.8 53.5 91.1 79.3 34.0 7.2 40 Multifamily 3.6 3.0 2.2 5.9 2.8 4.1 41 Nonresidential 67.6 43.5 6.8 14.8 63.1 88.6 AAllll ssiizzeess 1-9 10-24 25-49 50-99 100-249 250 and over LLOOAANNSS TTOO FFAARRMMEERRSS 42 Amount of loans (thousands of dollars) 1,502,201 199,153 176,270 195,641 173,959 339,127 418,052 43 Number of loans 77,344 53,658 11,974 6,105 2,720 2,312 574 44 Weighted-average maturity (months) 8.3 6.6 7.1 8.0 8.4 11.3 7.5 45 Weighted-average interest rate (percent per annum) .. 14.25 14.64 14.35 14.41 14.24 14.51 13.75 46 Interquartile range1 13.55-14.95 13.96-15.02 13.67-15.02 13.80-14.95 13.59-15.03 14.09-15.02 12.55-14.49 By purpose of loan 4 4 7 8 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 14 3 . . 5 8 1 6 1 1 3 4 . . 9 7 7 9 1 11 4 44 . ..00 59 77 1 1 4 4 . . 6 3 3 4 14 ( . 2 6 ) 3 14 ( . 2 8 ) 4 1 11 3 33 . .. 3 77 3 44 4 5 9 0 O Fa th rm er m cu a r c r h e i n n t e r o y p e a r n a d t in e g q u e i x p p m e e n n s t e s 1 1 5 4 . .2 04 9 1 14 5 . .8 56 8 1 1 4 4 . .4 55 1 1 14 4 . .6 54 8 14 ( . 2 2 ) 1 14 ( . 2 4 ) 4 13 ( . 2 8 ) 9 51 Other 13.93 14.59 14.02 13.91 14.10 14.14 13.63 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 • July 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 11998833 Mar. Apr. May June June 1 June 8 June 15 June 22 June 29 MONEY MARKET RATES 1 Federal funds1'2 16.38 12.26 9.09 9.91 10.29 10.32 11.06 10.30 10.72 10.85 11.49 11.27 2 Discount window borrowing1'2'3 13.42 11.02 8.50 8.50 8.87 9.00 9.00 9.00 9.00 9.00 9.00 9.00 Commercial paper4'5 3 1-month 15.69 11.83 8.87 9.81 10.17 10.38 10.82 10.32 10.56 10.75 10.98 11.07 4 3-month 15.32 11.89 8.88 9.83 10.18 10.65 10.98 10.72 10.78 10.87 11.06 11.26 5 6-month 14.76 11.89 8.89 9.86 10.22 10.87 11.23 11.08 11.13 11.19 11.24 11.37 Finance paper, directly placed4'5 6 1-month 15.30 11.64 8.80 9.76 10.08 10.26 10.76 10.28 10.53 10.69 10.90 11.04 7 3-month 14.08 11.23 8.70 9.54 9.86 10.16 10.38 10.26 10.26 10.28 10.45 10.55 8 6-month 13.73 11.20 8.69 9.38 9.76 10.03 10.25 10.11 10.13 10.15 10.31 10.45 Bankers acceptances5'6 9 3-month 15.32 11.89 8.90 9.88 10.22 10.84 11.04 10.88 10.76 10.81 11.22 11.41 10 6-month 14.66 11.83 8.91 9.91 10.26 11.06 11.30 11.35 11.20 11.19 11.33 11.49 Certificates of deposit, secondary market7 11 1-month 15.91 12.04 8.96 9.91 10.24 10.62 11.02 10.56 10.69 10.83 11.19 11.41 12 3-month 15.91 12.27 9.07 10.08 10.41 11.11 11.34 11.31 11.09 11.13 11.46 11.67 13 6-month 15.77 12.57 9.27 10.37 10.73 11.64 11.96 11.99 11.83 11.94 11.97 12.11 14 Eurodollar deposits, 3-month8 16.79 13.12 9.56 10.40 10.83 11.53 11.68 11.67 11.39 11.50 11.75 12.11 U.S. Treasury bills5 Secondary market9 15 3-month 14.03 10.61 8.61 9.52 9.69 9.83 9.87 9.76 9.81 9.95 9.91 9.81 16 6-month 13.80 11.07 8.73 9.66 9.84 10.31 10.51 10.56 10.49 10.50 10.56 10.48 17 1-year 13.14 11.07 8.80 9.67 9.95 10.57 10.93 10.94 10.80 10.87 10.97 11.09 Auction average10 18 3-month 14.029 10.686 8.63 9.44 9.69 9.90 9.94 9.83 9.90 10.07 10.01 9.77 19 6-month 13.776 11.084 8.75 9.58 9.83 10.31 10.55 10.62 10.57 10.66 10.49 10.49 2200 1133..115599 1111..009999 88..8866 99..6688 99..8866 1100..6644 1100..9922 1100..9922 CAPITAL MARKET RATES U.S. Treasury notes and bonds11 Constant maturities12 21 1-year 14.78 12.27 9.57 10.59 10.90 11.66 12.08 12.10 11.92 12.02 12.15 12.28 22 2-year 14.56 12.80 10.21 11.31 11.69 12.47 12.91 12.94 12.71 12.83 12.98 13.15 73 13.05 12.90 13.35 24 3-year 14.44 12.92 10.45 11.59 11.98 12.75 13.18 13.25 12.99 13.08 13.24 13.46 25 5-year 14.24 13.01 10.80 12.02 12.37 13.17 13.48 13.69 13.34 13.36 13.49 13.72 26 7-year 14.06 13.06 11.02 12.25 12.56 13.34 13.56 13.82 13.45 13.46 13.55 13.77 27 10-year 13.91 13.00 11.10 12.32 12.63 13.41 13.56 13.86 13.47 13.43 13.55 13.79 28 20-year 13.72 12.92 11.34 12.45 12.65 13.43 13.54 13.79 13.47 13.45 13.51 13.71 29 30-year 13.44 12.76 11.18 12.38 12.65 13.43 13.44 13.80 13.42 13.32 13.41 13.59 Composite14 30 Over 10 years (long-term) 12.87 12.23 10.84 11.90 12.17 12.89 13.00 13.25 12.94 12.91 12.97 13.18 State and local notes and bonds Moody's series15 31 Aaa 10.43 10.88 8.80 9.41 9.54 9.98 10.05 10.30 10.00 10.00 10.00 10.20 32 Baa 11.76 12.48 10.17 10.22 10.30 10.55 10.68 11.10 10.85 10.60 10.50 10.75 33 Bond Buyer series16 11.33 11.66 9.51 9.94 9.96 10.49 10.67 11.07 10.78 10.59 10.56 10.76 Corporate bonds Seasoned issues17 34 All industries 15.06 14.94 12.78 13.33 13.59 14.13 14.40 14.44 14.34 14.34 14.37 14.53 35 Aaa 14.17 13.79 12.04 12.57 12.81 13.28 13.55 13.56 13.46 13.48 13.55 13.71 36 Aa 14.75 14.41 12.42 13.22 13.48 14.10 14.33 14.44 14.32 14.29 14.27 14.41 37 A 15.29 15.43 13.10 13.54 13.77 14.37 14.66 14.73 14.64 14.58 14.59 14.80 38 Baa 16.04 16.11 13.55 13.99 14.31 14.74 15.05 15.04 14.95 15.01 15.06 15.20 39 A-rated, recently-offered utility bonds18 16.63 15.49 12.73 13.63 13.96 14.79 15.00 15.02 14.82 14.78 15.21 15.28 MEMO: Dividend/price ratio19 40 Preferred stocks 12.36 12.53 11.02 11.39 11.66 11.72 12.04 11.97 12.07 12.00 12.02 12.06 41 Common stocks 5.20 5.81 4.40 4.63 4.64 4.72 4.86 4.93 4.79 4.89 4.82 4.92 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 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 96.78 95.36 94.92 96.16 90.60 90.66 90.67 90.07 88.28 2 Industrial 85.44 78.18 107.45 112.87 110.77 110.60 112.16 105.44 105.92 106.56 105.94 104.04 3 Transportation 72.61 60.41 89.36 95.41 97.68 98.79 97.98 86.33 86.10 83.61 81.62 79.29 4 Utility 38.90 39.75 47.00 48.73 48.50 47.00 47.43 45.67 44.83 43.86 44.22 43.65 5 Finance 73.52 71.99 95.34 94.79 94.48 94.25 95.79 89.95 89.50 88.22 85.06 80.75 6 Standard & Poor's Corporation (1941-43 = 10)1 ... 128.05 119.71 160.41 167.65 165.23 164.36 166.39 157.70 157.44 157.60 156.55 153.12 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 171.79 141.31 216.48 223.76 218.42 221.31 224.83 207.95 210.09 207.66 206.39 201.24 Volume of trading (thousands of shares) 8 New York Stock Exchange 46,967 64,617 85,418 85,445 86,405 88,041 105,518 96,641 84,328 85,874 88,170 8855,,992200 9 American Stock Exchange 5,346 5,283 8,215 7,751 6,160 6,939 7,167 6,431 5,382 5,863 5,935 5,071 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 14,411 13,325 23,000 21,030 22,075 23,000 23,132 22,557 22,668 22,830 22,360 * 11 Margin stock 14,150 12,980 22,720 20,690 21,790 22,720 22,870 22,330 22,460 4 I 12 Convertible bonds 259 344 279 339 285 279 261 226 208 n.a. n.a. n.a. 13 Subscription issues 2 1 1 1 1 1 1 1 * t t Free credit balances at brokers4 14 Margin-account 3,515 5,735 6,620 6,630 6,512 6,620 6,510 6,420 6,520 6,450 6,685 15 Cash-account 7,150 8,390 8,430 7,695 7,599 8,430 8,230 8,420 8,265 7,910 8,115 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 35.0 48.0 41.0 43.0 48.0 46.0 47.0 53.0 18 40-49 24.0 24.0 22.0 24.0 22.0 22.0 21.0 20.0 20.0 20.0 18.0 19 50-59 17.0 24.0 16.0 17.0 17.0 16.0 15.0 13.0 14.0 13.0 12.0 n.a. 20 60-69 10.0 14.0 9.0 10.0 10.0 9.0 9.0 8.0 9.0 8.0 7.0 1 21 70-79 6.0 9.0 6.0 7.0 7.0 6.0 6.0 6.0 6.0 6.0 5.0 1 22 80 or more 6.0 8.0 6.0 7.0 6.0 6.0 6.0 5.0 5.0 6.0 5.0 T Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 25,870 35,598 58,329 54,029 57,490 58,329 62,670 63,411 65,855 66,340 70,110 f Distribution by equity status (percent) 1 24 Net credit status 58.0 62.0 63.0 63.0 63.0 63.0 61.0 59.0 61.0 60.0 60.0 n.a. Debt status, equity of 1 25 60 percent or more 31.0 29.0 28.0 28.0 29.0 28.0 29.0 29.0 28.0 29.0 27.0 1 26 Less than 60 percent 11.0 9.0 9.0 9.0 8.0 9.0 10.0 12.0 11.0 11.0 13.0 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 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 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 • July 1984 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1983 1984 AAccccoouunntt 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May P Savings and loan associations 1 Assets 664,167 707,646 741,416 746,998 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,482 821,376 ? Mortgages 518,547 483,614 479,322 483,178 482,305 485,366 489,720 493,432 494,682 497,987 502,143 509,283 518,147 3 Cash and investment securities1 63,123 85,438 102,546 99,812 100,243 101,553 101,553 103,395 101,883 103,917 108,565 105,950 109,050 4 Other 82,497 138,594 159,548 164,008 165,943 170,034 172,259 174,878 176,158 178,203 185,387 191,249 194,179 5 Liabilities and net worth 664,167 707,646 741,416 746,998 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,482 821,376 6 Savings capital 525,061 567,961 610,826 615,369 618,002 622,577 625,013 634,076 639,694 644,588 656,252 660,262 669,874 7 Borrowed money 88,782 97,850 84,694 84,267 85,976 87,367 89,235 91,443 86,322 86,526 93,321 97,468 102,363 8 FHLBB 62,794 63,861 53,579 52,182 52,179 52,678 51,735 52,626 50,880 50,465 50,663 51,951 53,620 9 Other 25,988 33,989 31,115 32,085 33,797 34,689 37,500 38,817 35,442 36,061 42,658 45,517 48,743 10 Loans in process2 6,385 9,934 17,094 17,967 18,812 19,209 19,728 21,117 21,498 21,939 22,929 23,898 24,677 11 Other 15,544 15,602 17,527 18,615 15,496 17,458 19,179 15,275 15,777 17,520 14,938 16,904 17,155 12 Net worth3 28,395 26,233 28,369 28,626 29,017 29,551 29,938 30,911 30,930 31,473 31,584 31,848 31,984 13 MEMO: Mortgage loan commitments outstanding4 15,225 18,054 31,733 32,415 32,483 32,798 34,780 32,9% 39,813 36,150 39,813 41,672 44,376 Mutual savings banks5 14 Assets 175,728 174,197 182,822 183,612 186,041 187,385 189,149 193,535 194,217 195,168 196,944 198,000 Loans 15 Mortgage 99,997 94,091 93,998 93,941 94,831 94,863 95,600 97,356 97,704 97,895 98,383 99,017 16 Other 14,753 16,957 18,134 17,929 17,830 19,589 19,675 19,129 20,469 21,694 21,971 22,531 Securities 17 U.S. government6 9,810 9,743 13,931 14,484 14,794 14,634 15,092 15,360 15,167 15,667 15,773 15,913 18 State and local government 2,288 2,470 2,248 2,247 2,244 2,195 2,195 2,177 2,180 2,054 2,071 2,033 19 Corporate and other7 37,791 36,161 40,667 41,045 41,889 42,092 42,629 43,580 43,541 43,439 43,465 43,122 70 Cash 5,442 6,919 5,322 5,168 5,560 4,993 4,983 6,263 4,783 4,580 5,024 5,008 21 Other assets 5,649 7,855 8,522 8,799 8,893 9,019 8,975 9,670 10,373 9,839 10,257 10,376 22 Liabilities 175,728 174,197 182,822 183,612 186,041 187,385 189,149 193,535 194,217 195,168 196,944 198,000 n a. 73 Deposits 155,110 155,1% 164,848 165,087 165,887 168,064 169,356 172,665 173,637 174,349 175,909 175,875 24 Regular8 153,003 152,777 162,271 162,600 162,998 165,575 167,006 170,135 171,099 171,935 173,250 173,010 75 Ordinary savings 49,425 46,862 39,983 39,360 39,768 38,485 38,448 38,554 37,999 37,642 37,853 37,329 76 103,578 %,369 85,445 86,446 85,603 91,795 93,073 95,129 %,520 %,983 97,230 %,920 77 Other 2,108 2,419 2,577 2,487 2,889 2,489 2,350 2,530 2,538 2,414 2,659 2,865 78 Other liabilities 10,632 8,336 7,5% 7,884 9,475 8,779 9,185 10,154 9,932 9,932 10,280 11,211 29 General reserve accounts 9,986 9,235 9,684 9,932 9,879 10,015 10,210 10,368 10,334 10,566 10,384 10,466 30 MEMO: Mortgage loan commitments outstanding9 1,293 1,285 1,969 2,046 2,023 2,210 2,418 2,387 n.a. n.a. n.a. n.a. Life insurance companies 31 Assets . •525,803 588,163 633,569 638,826 644,295 647,149 652,904 658,979 663,013 664,677 668,833 Securities Government 25,209 36,499 44,751 45,700 46,109 47,767 47,170 49,417 49,690 49,711 50,505 United States10. 8,167 16,529 22,228 22,817 23,134 24,380 24,232 26,364 26,659 27,285 28,267 State and local . 7,151 8,664 10,504 10,695 10,739 10,791 10,686 10,796 10,673 10,048 9,822 Foreign11 9,891 11,306 12,019 12,188 12,236 12,596 12,252 12,257 12,358 12,378 12,416 Business '55,769 287,126 316,934 318,584 321,568 320,964 325,787 325,015 329,697 330,303 332,342 n a. n.a. Bonds >08,099 231,406 252,397 253,977 256,131 256,332 260,432 259,591 264,430 266,234 268,173 Stocks 47,670 55,720 64,537 64,607 65,437 64,632 65,355 65,424 65,267 64,069 64,169 39 Mortgages 137,747 141,989 145,086 146,400 147,356 148,256 148,947 151,599 151,878 151,630 151,968 40 Real estate 18,278 20,264 21,690 21,749 21,903 22,141 22,278 22,683 22,700 23,032 23,420 41 Policy loans 48,706 52,% 1 53,972 54,063 54,165 54,255 54,362 54,518 54,559 54,631 54,698 42 Other assets 40,094 48,571 51,136 52,330 53,194 53,765 54,360 55,747 54,474 55,370 55,900 Credit unions12 43 Total assets/liabilities and capital 60,611 69,585 78,846 79,241 80,189 80,419 81,094 81,961 82,287 83,779 86,498 87,204 89,378 44 Federal 39,181 45,493 51,859 52,261 53,086 53,297 53,801 54,482 54,770 55,753 57,569 58,127 59,636 45 State 21,430 24,092 26,987 26,980 27,103 27,122 27,293 27,479 27,517 28,026 28,929 29,077 29,742 46 Loans outstanding 42,333 43,232 45,647 46,940 47,829 48,454 49,240 50,083 50,477 51,386 52,353 53,355 54,813 47 Federal 27,096 27,948 29,672 30,582 31,212 31,691 32,304 32,930 33,270 33,878 34,510 35,286 36,274 48 State 15,237 15,284 15,975 16,358 16,617 16,763 16,936 17,153 17,207 17,508 17,843 18,069 18,539 49 Savings 54,152 62,990 72,232 72,214 73,280 73,661 74,051 74,739 75,373 76,423 79,150 80,032 81,571 50 Federal (shares) 35,250 41,352 47,713 47,847 48,709 49,044 49,400 49,889 50,438 51,218 52,905 53,587 54,632 51 State (shares and deposits) 18,902 21,638 24,519 24,367 24,571 24,617 24,651 24,850 24,935 25,205 26,245 26,445 26,939 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.37 Continued 1983 1984 AAccccoouunntt 11998811 11998822 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP FSLIC-insured federal savings banks 52 Assets 6,859 41,763 46,191 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,374 78,558 53 Mortgages 3,353 26,494 28,086 34,814 35,637 37,166 38,698 41,754 43,371 44,708 45,900 46,532 54 Cash and investment securities' 6,890 7,514 9,245 9,587 9,653 10,436 11,243 11,662 12,552 12,762 12,750 55 Other 8,379 10,591 13,437 14,198 14,898 15,835 16,838 17,110 18,295 18,712 19,276 56 Liabilities and net worth 6,859 41,763 46,191 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,374 78,558 57 Savings and capital 5,877 34,108 37,284 47,058 48,544 50,384 53,227 57,195 59,107 61,433 62,495 62,729 58 Borrowed money 5,008 5,445 6,598 6,775 6,981 7,477 8,048 8,088 9,213 9,707 10,402 59 FHLBB 3,131 3,572 4,192 4,323 4,381 4,640 4,751 4,884 5,232 5,491 5,905 60 Other 1,877 1,873 2,406 2,452 2,600 2,837 3,297 3,204 3,981 4,216 4,497 61 Other 919 1,142 1,089 1,293 1,428 1,157 1,347 1,545 1,360 1,548 1,728 62 Net worth3 1,728 2,320 2,751 2,810 2,924 3,108 3,245 3,403 3,549 3,624 3,699 MEMO 63 Loans in process2 828 934 1,120 1,181 1,222 1,264 1,387 1,531 1,669 1,716 1,781 64 Mortgage loan committments outstanding4 1,743 1,774 2,130 2,064 2,230 2,151 2,974 2,704 3,253 3,714 3,700 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 Mar. Apr. May U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 44,464 80,180 37,459 2 Outlays' 657,204 728,375 795,917 348,678 390,846 396,477 73,020 68,687 71,391 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -28,556 11,493 -33,932 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 -2,827 5,033 3,849 5 Federal funds2 3 -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -25,728 6,459 -37,781 Off-budget entities (surplus, or deficit ( —)) 6 Federal Financing Bank outlays -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 -1,431 -920 1,171 7 Other3-4 -236 -3,190 -1,953 227 -2,267 -528 -296 262 -181 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 -30,282 10,833 -35,284 Source of financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 7,568 17,038 8,604 10 Cash and monetary assets (decrease, or increase (-))4 -1,878 -11,911 -9,889 -408 -9,057 -9,664 9,415 -24,772 31,023 11 Other5 1,485 4,858 5,176 -7,405 1,146 3,222 13,299 -3,099 -4,344 MEMO 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 14,054 38,204 8,182 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 3,684 16,729 4,855 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 10,369 21,474 3,327 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 onfinancial Statistics • July 1984 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1982 1983 1984 111999888111 111999888222 111999888333 HI H2 HI Mar. Apr. May RECEIPTS 1 All sources 599,272 617,766 600,563 322,478 286,338 306,331 44,464 80,180 37,459 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 12,895 39,192 4,333 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 26,877 22,321 2233,,551199 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 9 5 88 5 N on withheld 76,844 84,691 83,586 66,174 20,040 63,014 2,776 31,993 1,269 6 Refunds 47,299 54,498 60,692 49,217 55,,993388 5544,,002244 1166,,776666 1155,,112277 2200,,446633 Corporation income taxes / Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 9,441 11,786 2,295 8 Refunds 12,596 16,784 24,758 8,028 1111,,446677 13,809 11,,447766 22,,669911 22,,001155 9 Social insurance taxes and contributions net 182,720 201,498 209,001 108,079 9944,,227788 111100,,552211 1177,,770022 2266,,003366 2266,,444411 10 Payroll employment taxes and contributions1 156,932 172,744 179,010 88,795 8855,,006633 9900,,991122 1166,,770044 1188,,553322 1177,,116688 11 Self-employment taxes and contributions2 6,041 7,941 6,756 7,357 177 6,427 433 4,637 432 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 191 2,501 8,457 13 Other net receipts3 3,984 4,212 4,436 2,119 2,181 2,1% 373 366 384 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 2,870 3,042 3,322 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 974 937 990 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 523 505 550 17 Miscellaneous receipts4 13,790 16,161 15,594 7,984 7,891 7,751 1,535 1,374 1,543 OUTLAYS 18 All types 657,204 728,424 795,917 348,683 390,847 396,477 73,020 68,687 71,391 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 19,516 18,711 19,955 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 1,180 973 999 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 611 685 756 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 265 57 119 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 861 923 951 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 1,315 1,364 687 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 224 -22 2,013 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 1,555 1,716 1,798 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 514 481 563 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,172 2,210 2,260 29 Health 26,858 27,435 28,6551 2,729 2,577 2,638 30 Social security and medicare 178,733 202,531 223,311> 150,0015 172,852 184,207 20,192 19,405 19,555 31 Income security 85,514 92,084 106,21 lj 9,791 8,677 8,498 32 Veterans benefits and services 22,988 23,955 24,845 112,782 13,241 11,334 3,293 891 2,204 33 Administration of justice 4,6% 4,671 5,014 2,334 2,373 2,522 435 476 441 34 General government 4,614 4,726 4,991 2,400 2,322 2,434 585 265 558 35 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 86 1,219 80 36 Net interest® 68,726 84,697 89,774 41,883 44,948 42,358 8,592 9,211 10,235 37 Undistributed offsetting receipts7 -16,509 -13,270 -21,424 -6,490 -8,333 -8,885 -824 -1,130 -2,918 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 contribut ions 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 All 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 1,415.3 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 1,174.4 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 Money market funds 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 se- mutual savings banks, corporate pension trust funds, dealers and brokers, certain ries 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 Nonfinancial Statistics • July 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 Apr/ Mayr June May 2' May y May 16 May 23 May 30 June 6 Immediate delivery1 1 U.S. government securities 24,728 32,271 42,135 45,766 55,011 50,973 40,716 48,611 63,673 51,889 57,583 65,457 By maturity 2 Bills 14,768 18,398 22,393 24,577 29,041 27,502 20,890 25,756 30,038 30,176 30,391 34,751 3 Other within 1 year 621 810 708 949 1,162 1,195 1,176 853 1,172 1,322 1,193 1,347 4 1-5 years 4,360 6,272 8,758 8,859 11,388 10,594 9,856 10,954 13,944 10,186 12,321 11,832 5 5-10 years 2,451 3,557 5,279 5,783 6,739 6,783 4,057 5,350 8,187 4,820 7,697 11,716 6 Over 10 years 2,528 3,234 4,997 5,598 6,682 4,899 4,738 5,697 10,333 5,385 5,981 5,811 By type of customer / U.S. government securities dealers 1,640 1,769 2,257 2,282 2,459 2,268 2,352 2,016 2,852 2,136 2,850 22,,771166 8 U.S. government securities brokers 11,750 15,659 21,045 22,635 28,028 26,520 20,339 25,059 34,166 25,995 27,294 33,313 9 All others2 11,337 15,344 18,832 20,849 24,523 22,185 18,026 21,536 26,655 23,758 27,440 29,427 10 Federal agency securities 3,306 4,142 5,576 7,214 6,568 7,065 5,975 6,499 8,584 5,221 4,884 8,268 11 Certificates of deposit 4,477 5,001 4,333 7,618 6,186 3,979 8,422 8,693 7,038 4,091 4,183 4,692 12 Bankers acceptances 1,807 2,502 2,642 3,068 3,332 3,108 2,637 3,206 3,655 3,402 3,424 3,689 13 Commercial paper 6,128 7,595 8,036 9,858 8,868 10,027 9,343 77,,996611 88,,777755 99,,448877 88,,774477 1100,,448800 Futures transactions3 14 Treasury bills 3,523 5,031 6,655 8,494 11,279 8,171 6,373 10,405 13,867 10,828 11,486 10,871 15 Treasury coupons 1,330 1,490 2,501 3,789 5,506 4,967 3,044 4,509 7,433 5,164 5,868 6,235 16 Federal agency securities 234 259 265 223 351 381 176 403 253 362 443 367 Forward transactions4 17 U.S. government securities 365 835 1,493 995 1,766 1,683 1,131 2,537 1,735 1,493 1,550 1,601 18 Federal agency securities 1,370 982 1,646 2,952 3,069 2,805 2,648 3,783 3,884 1,922 2,704 3,230 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 deale rs 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 | Apr/ May' June May 2 May 9 May 16 May 23 May 30 Positions Net immediate1 1 U.S. government securities 9,033 9,328 6,263 1,333 -9,046 -6,362 -4,165 -9,467 -7,972 -9,173 -11,193 2 Bills 6,485 4,837 4,282 2,929 -7,091 -2,628 -2,812 -7,602 -8,251 -6,019 -8,021 3 Other within 1 year -1,526 -199 -177 -32 -291 -595 -295 -284 -1 -263 -541 4 1-5 years 1,488 2,932 1,709 -999 50 365 560 708 517 -1,665 716 5 5-10 years 292 -341 -78 -46 -939 -1,339 -777 -994 -550 -802 -1,719 6 Over 10 years 2,294 2,001 528 -598 -865 -2,250 -921 -1,388 221 -519 -1,713 7 Federal agency securities 2,277 3,712 7,172 16,649 16,852 16,003 16,729 17,016 16,875 16,390 16,723 8 Certificates of deposit 3,435 5,531 5,839 6,968 6,405 7,013 7,003 7,181 6,141 5,968 6,042 9 Bankers acceptances 1,746 2,832 3,332 3,299 3,183 3,493 3,592 3,719 3,499 2,694 2,611 10 Commercial paper 2,658 3,317 3,159 2,797 2.937 3,969 3,065 3,218 2,550 2,601 3,050 Futures positions 11 Treasury bills -8,934 -2,508 -4,125 -689 9,342 2,608 3,631 6,811 10,369 11,070 11,525 12 Treasury coupons -2,733 -2,361 -1,032 976 1,083 1,867 796 1,035 828 1,308 1,340 13 Federal agency securities 522 -224 170 79 628 826 228 479 810 768 620 Forward positions 14 U.S. government securities -603 -788 -1,935 -1,932 -4,588 -863 -4,407 -4,242 -5,001 -5,559 -3,844 15 Federal agency securities -451 -1,190 -3,561 -9,485 -10,278 -10,760 -9,913 -10,879 -10,519 -9,782 -9,711 Financing2 Reverse repurchase agreements3 1 1 6 7 T O e v r e m rn i a g g h r t e e a m nd e n c t o s ntinuing 3 1 2 4 , , 0 5 4 6 8 8 4 2 8 6 , , 2 7 4 5 7 4 2 5 9 2 , , 0 4 9 9 9 3 6 43 5 , , 5 1 2 4 5 9 6 4 5 6 , , 9 3 2 4 1 8 T 1 6 45 5 , , 8 4 5 1 9 2 6 4 6 5 , , 1 6 3 2 8 2 6 44 6 , , 0 3 5 8 6 9 4 6 8 5 , , 2 5 8 5 9 4 6 47 5 , , 6 8 2 0 1 5 Repurchase agreements4 n.a. 18 Overnight and continuing 35,919 49,695 57,946 74,563 72,521 1 76,562 74,193 72,378 70,412 71,484 19 Term agreements 29,449 43,410 44,410 53,023 54,881 T 52,834 52,398 54,450 57,118 56,375 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1983 1984 AAggeennccyy 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies 188,665 221,946 237,085 239,716 239,872 241,628 244,691' 247,148 252,044 2 Federal agencies 28,606 31,806 33,055 33,940 33,919 33,785 32,800 34,273 34,231 3 Defense Department1 610 484 354 243 234 215 206 197 188 4 Export-Import Bank2-3 11,250 13,339 14,218 14,853 14,852 14,846 15,347 15,344 15,344 5 Federal Housing Administration4 477 413 288 194 173 169 166 162 156 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 1,337 8 Tennessee Valley Authority 11,190 13,115 14,365 14,970 14,980 14,875 14,805 14,890 14,930 9 United States Railway Association6 492 202 194 111 111 111 111 111 111 10 Federally sponsored agencies7 160,059 190,140 204,030 205,776 205,953 207,843 211,891 212,872 217,813 11 Federal Home Loan Banks 37,268 54,131 55,%7 48,930 48,344 48,224 48,594 49,786 52,281 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 6,793 6,679 7,556 8,633 8,134 9,131 13 Federal National Mortgage Association 55,182 58,749 70,052 74,594 74,676 75,865 77,966 78,073 79,267 14 Farm Credit Banks 62,923 71,359 71,896 72,409 73,023 72,856 73,180 73,130 73,138 15 Student Loan Marketing Association (8) 421 1,591 3,050 3,231 3,342 3,518 3,749 3,996 MEMO 16 Federal Financing Bank debt 87,460 110,698 126,424 135,791 135,940 135,859 137,707 138,769 139,936 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,789 14,789 14,789 15,2% 15,2% 15,296 18 Postal Service6 1,520 1,288 1,221 1,154 1,154 1,154 1,154 1,154 1,087 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 13,245 13,255 13,150 13,080 13,165 13,205 21 United States Railway Association6 492 202 194 111 111 111 111 111 111 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 55,266 54,776 54,471 55,186 55,691 56,476 23 Rural Electrification Administration 9,1% 13,516 17,157 19,766 19,927 19,982 20,186 20,413 20,456 24 Other 11,262 12,740 22,774 26,460 26,928 27,202 27,694 27,939 28,305 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. I, 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 2. Figures cover financing involving U.S. government and federal agency owned by nonbank dealer firms and dealer departments of commercial banks on a securities, negotiable CDs, bankers acceptances, and commercial paper. commitment, that is, trade-date basis, including any such securities that have 3. Includes all reverse repurchase agreements, including those that have been been sold under agreements to repurchase (RPs). The maturities of some arranged to make delivery on short sales and those for which the securities repurchase agreements are sufficiently long, however, to suggest that the securi- obtained have been used as collateral on borrowings, that is, matched agreements. ties involved are not available for trading purposes. Prior to 1984, securities 4. Includes both repurchase agreements undertaken to finance positions and owned, and hence dealer positions, do not include all securities acquired under "matched book" repurchase agreements. reverse RPs. After January 1984, immediate positions include reverses to maturity, which are securities that were sold after having been obtained under reverse NOTE. Data for positions are averages of daily figures, in terms of par value, repurchase agreements that mature on the same day as the securities. Before based on the number of trading days in the period. Positions are shown net and are 1981, data for immediate positions include forward positions. on a commitment basis. Data for financing are based on Wednesday figures, in terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • July 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 Sept. Oct. Nov. Dec. Jan. Feb.' Mar.' Apr. 1 AU issues, new and refunding1 47,732 79,138 86,421 6,172 6,701 5,945 9,833 5,061' 4,537 5,427 5,243 Type of issue 2 General obligation 12,394 21,094 21,566 1,266 1,951 1,730 1,153 i,i2(y 1,829 2,495 2,216 3 U.S. government loans2 34 225 96 14 15 15 15 0 2 2 3 4 Revenue 35,338 58,044 64,855 4,906 4,750 4,215 8,680 3,941 2,708 2,932 3,027 5 U.S. government loans2 55 461 253 35 39 39 39 1 2 4 8 Type of issuer 6 State 5,288 8,438 7,140 452 856 405 204 327 935 584 885 7 Special district and statutory authority 27,499 45,060 51,297 4,196 4,406 3,358 6,323 3,487' 2,114 2,964 2,668 8 Municipalities, counties, townships, school districts 14,945 25,640 27,984 1,524 1,439 2,182 3,306 1,247' 1,488 1,879 1,690 9 Issues for new capital, total 46,530 74,804 72,441 5,526 5,238 5,448 9,405 4,058' 3,953 4,634 4,153 Use of proceeds 10 Education 4,547 6,482 8,099 529 470 406 753 391 348 592 436 11 Transportation 3,447 6,256 4,387 195 250 353 438 127 330 53 539 12 Utilities and conservation 10,037 14,259 13,588 1,238 608 1,122 1,243 1,914 734 1,276 619 13 Social welfare 12,729 26,635 26,910 2,349 2,599 2,175 2,951 826 1,108 1,063 1,020 14 Industrial aid 7,651 8,349 7,821 490 355 584 2,945 127 288 76 311 15 Other purposes 8,119 12,822 11,637 725 956 808 1,075 673' 1,145 1,574 1,228 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'' Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 All issues1'2 70,441 84,514 99,003 6,568 6,897 8,103 6,812 7,691 7,629 5,442 6,047 2 Bonds 45,092 53,952 47,424 2,865 3,055 4,075 3,173 5,648 5,250 3,346 4,262 Type of offering 3 Public 38,103 44,154 47,424 2,865 3,055 4,075 3,173 5,648 5,250 3,346 4,262 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 8,133 282 367 22 423 179 452 68 691 6 Commercial and miscellaneous 5,229 5,681 5,374 353 114 23 201 976 626 258 1,096 7 Transportation 2,052 1,474 1,086 0 0 111 105 10 75 180 69 8 Public utility 8,963 12,155 7,066 590 510 910 120 325 385 521 495 9 Communication 4,280 2,265 3,380 100 50 0 0 210 0 200 0 10 Real estate and financial 12,243 19,255 22,385 1,540 2,014 3,009 2,324 3,948 3,712 2,119 1,911 11 Stocks3 25,349 30,562 51,579 3,703 3,842 4,028 3,639 2,043 2,379 2,096 1,785 Type 12 Preferred 1,797 5,113 7,213 644 300 433 253 305 425 227 339 13 Common 23,552 25,449 44,366 3,059 3,542 3,595 3,386 1,738 1,954 1,869 1,446 Industry group 14 Manufacturing 5,074 5,649 14,135 962 744 498 649 427 299 387 165 15 Commercial and miscellaneous 7,557 7,770 13,112 997 868 1,498 852 465 616 486 732 16 Transportation 779 709 2,729 165 305 192 413 54 15 105 62 17 Public utility 5,577 7,517 5,001 200 588 622 245 225 45 134 188 18 Communication 1,778 2,227 1,822 0 36 13 12 30 20 18 94 19 Real estate and financial 4,584 6,690 14,780 1,379 1,301 1,145 1,468 842 1,384 966 544 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr/ May INVESTMENT COMPANIES1 1 Sales of own shares2 45,675 84,793 6,532 6,341 6,846 10,274 8,233 8,857 9,549 8,657 2 Redemptions of own shares3 30,078 57,120 4,264 3,920 5,946 5,544 5,162 5,339 7,451 5,993 3 Net sales 15,597 27,673 2,268 2,421 900 4,730 3,071 3,518 2,098 2,664 4 Assets4 76,841 113,599 107,314 113,052 113,599 114,839 111,068 114,537 116,812 111,070 5 Cash position5 6,040 8,343 8,256 9,395 8,343 8,963 9,140 10,406 10,941 10,847 6 Other 70,801 105,256 99,058 103,657 105,256 105,876 101,928 104,131 105,871 100,223 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 Q1 Q2 Q3 Q4 Ql 1 Corporate profits with inventory valuation and capital consumption adjustment 192.3 164.8 229.2 166.8 168.5 161.9 181.8 218.2 248.4 268.2 281.6 2 Profits before tax 227.0 174.2 207.6 178.8 177.3 167.5 169.7 203.3 229.1 228.2 244.3 3 Profits tax liability 82.8 59.1 76.9 61.4 60.8 54.0 61.5 76.0 84.9 85.3 92.7 4 Profits after tax 144.1 115.1 130.6 117.4 116.5 113.5 108.2 127.2 144.1 142.9 151.6 5 Dividends 64.7 68.7 73.2 67.8 68.8 70.4 71.4 72.0 73.7 75.9 78.2 6 Undistributed profits 79.4 46.4 57.3 49.5 47.7 43.1 36.7 55.2 70.4 67.0 73.4 7 Inventory valuation -23.6 -8.3 -9.2 -8.5 -9.0 -10.3 -1.7 -10.6 -18.3 -6.3 -12.5 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 DomesticN onfinancial Statistics • July 1984 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1982 1983 AAccccoouunntt 11997777 11997788 11997799 11998800 11998811 Q4 Q1 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 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 11998844'' Ql Q2 Q3 Q4 Ql Q2 Q3i 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 5588..9944 5588..2288 63.39 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 4.07 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 ATrade 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 Ql 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 3 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 \ 24.9' 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 AAAppprrr... 333000,,, 111999888444''' Feb. Mar. Apr. Feb. Mar. Apr. Feb. Mar. Apr. 1 Total 101,816 1,934 706 818 28,218 26,006 24,643 26,284 25,300 23,825 2 Retail automotive (commercial vehicles) 23,715 700 364 466 2,157 1,878 2,002 1,457 1,514 1,536 3 Wholesale automotive 17,133 638 -10 343 9,856 7,728 8,713 9,218 7,738 8,370 4 Retail paper on business, industrial, and farm equipment 29,125 568 352 -5 1,488 1,304 1,142 920 952 1,147 5 Loans on commercial accounts receivable and factored commercial accounts receivable 10,678 -117 -236 -78 12,313 12,709 10,705 12,430 12,945 10,783 6 All other business credit 21,165 145 236 92 2,404 2,387 2,081 2,259 2,151 1,989 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • July 1984 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1983 1984 IItteemm 11998811 11998822 11998833 Nov. Dec. Jan. Feb. Mar. Apr. May Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms' 1 Purchase price (thousands of dollars) 90.4 94.6 92.8 98.0 94.8 92.9 104.1 94.0 92.4R 94.6 2 Amount of loan (thousands of dollars) 65.3 69.8 69.6 76.7 73.3 71.7 77.8 73.4 71. V 73.3 3 Loan/price ratio (percent) 74.8 76.6 77.1 80.5 79.1 1 79.2 77.8 80.4 19.2' 79.7 4 Maturity (years) 27.7 27.6 26.7 26.5 27.3 27.8 27.3 27.9 28.<Y 27.6 5 Fees and charges (percent of loan amount)2 2.67 2.95 2.40 2.54 2.56 2.61 2.41 2.52 2.63R 2.61 6 Contract rate (percent per annum) 14.16 14.47 12.20 11.82 11.94 11.80 11.78 11.56 11.55' 11.67 Yield (percent per annum) 7 FHLBB series5 14.74 15.12 12.66 12.34 12.42 12.29 12.23 12.02 12.04'' 12.17 8 HUD series4 16.52 15.79 13.43 13.48 13.41 13.28 13.31 13.57 13.77' 14.38 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 16.31 15.31 13.11 13.23 13.25 13.08 13.20 13.68 13.80 15.01 10 GNMA securities6 15.29 14.68 12.26 12.51 12.49 12.35 12.31 12.70 13.01 13.67 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 58,675 66,031 74,847 76,714 78,256 79,049 79,350 80,974 8811,,995566 8822,,669977 12 FHA/VA-insured 39,341 39,718 37,393 36,349 36,211 40,873 35,420 35,329 35,438 35,309 13 Conventional 19,334 26,312 37,454 40,365 42,045 38,177 43,930 45,645 46,518 47,388 Mortgage transactions (during period) 14 Purchases 6,112 15,116 17,554 1,348 2,204 11,,228855 1,507 2,030 11,,777755 1,379 15 2 2 3,528 0 250 20 723 0 235 0 Mortgage commitments1 16 Contracted (during period) 9,331 22,105 18,607 997 1,471 1,772 1,930 1,626 1,561 1,233 17 Outstanding (end of period) 3,717 7,606 5,461 6,493 5,461 5,470 5,872 5,333 5,135 4,981 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 18 Total 5,231 5,131 5,996 7,093 7,633 8,049 8,566 8,980 9,143 9,224 19 FHA/VA 1,065 1,027 974 940 941 940 934 929 924 918 20 Conventional 4,166 4,102 5,022 6,153 6,691 7,109 7,632 8,050 8,219 8,306 Mortgage transactions (during period) 21 Purchases 3,800 23,673 23,089 1,287 1,685 11,,441199 1,389 1,291 998833 998877 22 3,531 24,170 19,686 1,143 1,115 984 810 863 717 829 Mortgage commitments9 23 Contracted (during period) 6,896 28,179 32,852 2,093 1,704 1,470 1,386 1,874 1,701 1,966 24 Outstanding (end of period) 3,518 7,549 16,964 16,994 16,964 16,994 16,944 17,514 18,183 19,139 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 Ql Q2 Q3 Q4 Ql 1 Ail holders 1,583,264 1,654,966' 1,826,395' 1,681,575' 1,723,052' 1,775,117' 1,826,395' 1,869,577' 7 1- to 4-family 1,065,294 1,105,709' 1,214,592' 1,122,056' 1,146,926' 1,182,356' 1,214,592' 1,246,655' 3 Multifamily 136,354 140,542 150,949 141,500 144,731 147,052 150,949 153,578' 4 Commercial 279,889 302,009 351,287 311,107 323,427 336,697 351,287 359,220 5 101,727 106,706 109,567 106,912 107,968 109,012 109,567 110,124' 6 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 17 Mutual savings banks 99,997 97,805 136,054 105,378 119,236 129,645 136,054 142,255 13 1- to 4-family 68,187 66,777 96,569 73,240 84,349 92,467 %,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 3%,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 2.1 Life insurance companies 137,747 141,919 151,599 143,031 144,725 147,356 151,599 151,879 V 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 126,094 138,138 147,370' 139,973' 142,094 142,224 147,370' 150,921' 27 Government National Mortgage Association 4,765 4,227 3,395' 3,753' 3,643 3,475 3,395' 2,900' 28 1- to 4-family 693 676 630' 665' 651 639 630' 618' 29 Multifamily 4,072 3,551 2,765' 3,088' 2,992 2,836 2,765' 2,282' 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 69,3% 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 51,004' 42 1- to 4-family 2,788 3,068 3,000 3,059 3,030 3,008 3,000 2,982' 43 Farm 43,658 47,282 48,052 47,485 47,828 48,061 48,052 48,022' 44 Federal Home Loan Mortgage Corporation 5,237 4,733 7,632 4,795 6,235 6,856 7,632' 8,979' 45 1- to 4-family 5,181 4,686 7,559 4,740 6,119 6,799 7,559' 8,847' 46 Multifamily 56 47 73 55 116 57 73' 132' 47 Mortgage pools or trusts2 163,000 216,654 285,073 234,596 252,665 272,611 285,073 296,527 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 57,895 48,008 50,934 54,152 57,895 59,422 52 1- to 4-family 19,501 42,560 57,273 47,575 50,446 53,539 57,273 58,755 53 Multifamily 352 404 622 433 488 613 622 667 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 pension funds, credit unions, and U.S. agencies for which amounts are small or departments. for which separate data are not readily available. 2. Outstanding principal balances of mortgages backing securities insured or 5. Includes estimate of residential mortgage credit provided by individuals. guaranteed by the agency indicated. NOTE. Based on data from various institutional and governmental sources, with 3. Outstanding balances on FNMA's issues of securities backed by pools of some quarters estimated in part by the Federal Reserve in conjunction with the conventional mortgages held in trust. Implemented by FNMA in October 1981. Federal Home Loan Bank Board and the Department of Commerce. Separation of 4. Other holders include mortgage companies, real estate investment trusts, nonfarm mortgage debt by type of property, if not reported directly, and state and local credit agencies, state and local retirement funds, noninsured interpolations and extrapolations when required, are estimated mainly by the Federal Reserve. Multifamily debt refers to loans on structures of five or more units. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • July 1984 1.55 CONSUMER INSTALLMENT CREDIT' Total Outstanding, and Net ChangeA Millions of dollars 1983 1984 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Amounts outstanding (end of period) 1 Total 314,910 335,691 355,849 379,334 384,410 396,082 394,922 399,177 402,466 407,671 418,080 By major holder 2 Commercial banks 147,013 147,622 152,490 163,274 165,670 171,978 171,934 175,941 177,625 181,022 186,668 3 Finance companies .... 76,756 89,818 98,693 102,338 102,560 102,862 101,680 101,702 101,619 101,119 102,967 4 Credit unions 44,041 45,953 47,253 51,767 52,578 53,471 53,882 54,851 55,892 56,962 58,517 5 Retailers2 28,697 31,348 32,735 31,337 32,371 35,911 34,505 33,455 33,208 33,327 33,730 6 Savings and loans 9,911 12,410 15,823 20,472 21,023 21,615 21,823 22,269 23,071 23,957 24,915 7 Gasoline companies ... 4,468 4,403 4,063 4,243 4,157 4,131 4,300 4,025 3,944 3,955 4,020 8 Mutual savings banks.. 4,024 4,137 4,792 5,903 6,051 6,114 6,798 6,934 7,107 7,329 7,263 By major type of credit 9 Automobile 116,838 125,331 131,086 140,101 141,107 142,449 143,186 146,047 146,047 147,944 152,225 1 1 1 0 1 2 Co D I m n i d m re ir e c e r t c c t l i o a p a l a n b p s e a r n ks... 6 3 2 1 5 6 , , , 2 5 3 3 3 0 3 6 3 5 3 2 8 4 3 , , , 0 3 7 8 7 0 1 5 6 5 3 2 9 4 3 , , , 5 7 4 5 5 7 5 5 2 64,78 ( ( 0 3 3 ) ) 65,91 ( ( 7 3 3 ) ) 67,55 ( ( 7 3 3 ) ) 68,74 < ( 7 3 3 ) ) 71,32 ((' 7 3) ) 71,23 ( ( 7 3 3 ) ) 73,01 ( ( 6 3 3 ) ) 75,78 ( ( 7 3 3 ) ) 13 Credit unions 21,060 21,975 22,596 24,759 25,147 25,574 25,771 26,234 26,732 27,244 27,988 14 Finance companies .. 34,242 45,275 48,935 50,562 50,043 49,318 48,668 48,486 48,078 47,684 48,450 15 Revolving 58,506 64,500 69,998 72,105 74,032 80,823 78,566 77,671 79,110 80,184 82,436 16 Commercial banks... 29,765 32,880 36,666 39,774 40,774 44,184 43,118 43,506 45,235 46,149 47,936 17 Retailers 24,273 27,217 29,269 28,088 29,101 32,508 31,148 30,140 29,931 30,080 30,480 18 Gasoline companies . 4,468 4,403 4,063 4,243 4,157 4,131 4,300 4,025 3,944 3,955 4,020 19 Mobile home 17,321 17,958 22,254 23,358 23,492 23,680 23,668 23,571 23,661 23,850 24,104 20 Commercial banks... 10,371 10,187 9,605 9,877 9,871 9,842 9,829 9,663 9,589 9,580 9,573 21 Finance companies .. 3,745 4,494 9,003 9,250 9,270 9,365 9,345 9,324 9,333 9,361 9,434 22 Savings and loans ... 2,737 2,788 3,143 3,682 3,793 3,906 3,923 4,003 4,147 4,306 4,478 23 Credit unions 469 489 503 549 558 567 571 581 592 603 619 24 Other 122,244 127,903 132,511 143,770 145,779 149,130 149,502 151,888 153,648 155,693 159,315 25 Commercial banks... 45,341 46,474 46,664 48,843 49,108 50,395 50,240 51,445 51,564 52,277 53,372 26 Finance companies .. 38,769 40,049 40,755 42,526 43,247 44,179 43,667 43,892 44,208 44,074 45,083 27 Credit unions 22,512 23,490 24,154 26,459 26,873 27,330 27,540 28,036 28,568 29,115 29,910 28 Retailers 4,424 4,131 3,466 3,249 3,270 3,403 3,357 3,315 3,277 3,247 3,250 29 Savings and loans ... 7,174 9,622 12,680 16,790 17,230 17,709 17,900 18,266 18,924 19,651 20,437 30 Mutual savings banks 4,024 4,137 4,792 5,903 6,051 6,114 6,798 6,934 7,107 7,329 7,263 Net change (during period)4 31 Total 1,448 18,217 13,096 5,093 4,819 5,782 4,469 6,608 5,870 6,408 10,233 By major holder 32 Commercial banks -7,163 607 4,442 2,713 2,832 3,977 2,029 4,914 3,422 4,025 6,065 33 Finance companies .... 8,438 13,062 4,504 470 -40 -146 -66 258 -193 -350 1,304 34 Credit unions -2,475 1,913 1,298 942 912 731 916 712 1,230 1,529 1,453 35 Retailers2 329 1,103 651 215 318 537 422 325 355 278 476 36 Savings and loans 1,485 1,682 2,290 437 584 589 364 414 813 868 979 37 Gasoline companies ... 739 -65 -340 131 58 -31 72 -172 2 2 46 38 Mutual savings banks .. 95 -85 251 185 155 126 731 156 242 66 -90 By major type of credit 39 Automobile 477 8,495 4,898 1,709 1,268 1,468 2,106 2,799 326 2,158 3,689 4 4 0 1 Co I m nd m i e re r c c t i a p l a b pe a r n ks... - - 3 5 , , 1 8 0 3 4 0 -3 - , 8 4 5 5 8 5 2 - 2 9 5 1,4(8 3 3> 1,2 ( 5 3 7 ) 1,5(6 3 8) 1,7 ( 2 3 2 ) 2,63 ( 5 3 ) 4 ( 3 3 2 ) 1,7 ( 6 3 6 ) 2,80 ( 7 3 ) 42 Direct loans -2,726 -2,597 -234 (3) (3) (3) (3) (3) (3) (3) (3) 43 Credit unions -1,184 914 622 451 436 349 428 276 660 734 695 44 Finance companies .. 7,491 11,033 3,505 -225 -425 -449 -44 -112 -766 -342 187 45 Revolving 1,415 4,467 4,365 1,238 1,427 1,690 505 1,273 2,962 1,868 2,817 46 Commercial banks... -97 3,115 3,808 875 1,040 1,207 18 1,127 2,613 1,568 2,298 47 Retailers 773 1,417 897 232 329 515 414 318 347 298 473 48 Gasoline companies . 739 -65 -340 131 58 -31 72 -172 2 2 46 49 Mobile home 483 1,049 609 -30 -64 1 -92 -127 285 285 302 50 Commercial banks... -276 -186 -508 23 -4 39 -15 -112 -85 27 -50 51 Finance companies .. 355 749 471 -158 -164 -166 -104 -93 218 110 156 52 Savings and loans ... 430 466 633 95 94 120 18 68 141 132 183 53 Credit unions -25 20 14 10 10 9 9 10 10 16 13 54 Other -927 4,206 3,224 2,176 2,188 2,623 1,950 2,662 2,298 2,097 3,425 55 Commercial banks... -960 1,133 372 332 539 1,163 304 1,264 463 653 1,010 56 Finance companies .. 592 1,280 528 853 549 469 82 463 355 -118 961 57 Credit unions -1,266 975 662 481 466 374 479 426 558 780 745 58 Retailers -444 -314 -246 -17 -11 22 8 7 8 -20 3 59 Savings and loans ... 1,056 1,217 1,657 342 490 469 346 346 673 735 796 60 Mutual savings banks 95 -85 251 185 155 126 731 156 242 66 -90 • 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, $79.4 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 IItteemm 11998811 11998822 11998833 Nov. Dec. Jan. Feb. Mar. Apr. May INTEREST RATES Commercial banks' f1 16.54 16.83 13.92 13.46 13.32 13.53 18.09 18.65 16.68 16.39 16.16 16.35 3 17.45 18.05 15.91 15.47 15.45 15.54 4 1177..7788 1188..5511 1188..7733 1188..7755 1188..7733 1188..7711 Auto finance companies 5 New car 16.17 16.15 12.58 13.50 13.92 14.18 14.11 14.05 14.06 14.17 6 Used car 20.00 20.75 18.74 18.16 18.06 17.54 17.59 17.52 17.59 17.60 OTHER TERMS3 Maturity (months) 7 New car 45.4 46.0 45.9 46.3 46.3 46.3 46.4 46.7 47.1 47.7 8 Used car 35.8 34.0 37.9 38.0 37.9 39.5 39.4 39.4 39.5 39.7 Loan-to-value ratio 9 New car 86.1 85.3 86.0 86 87 88 87 87 88 88 10 Used car 91.8 90.3 92.0 93 92 92 91 92 92 92 Amount financed (dollars) 11 New car 7,339 8,178 8,787 9,118 9,167 9,099 9,072 9,139 9,190 9,262 12 Used car 4,343 4,746 5,033 5,316 5,401 5,392 5,418 5,474 5,547 5,675 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 • July 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 11997788 11997799 11998800 11998811 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 9 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 11 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 33 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 <s .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 37 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 369.8 386.0 343.2 377.2 395.3 523.3 392.4 362.0 356.8 434.8 504.7 541.9 By public agencies and foreign 2 Total net advances 102.3 75.2 97.0 97.4 109.3 117.2 111133..88 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 67.7 4455..22 49.6 6611..33 6688..44 6688..00 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 N 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 21 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 22 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 23 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 25 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 26 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 28 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 29 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 42 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 52 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 • July 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June 1 Industrial production 151.0 138.6 147.6 155.0 155.3 156.2 158.5 160.0 160.8 162.2 162.8 163.6 Market groupings 2 Products, total 150.6 141.8 149.2 155.6 155.8 157.4 159.7 160.4 161.1 162.5 163.3 164.1 i Final, total 149.5 141.5 147.1 152.7 153.2 155.2 157.5 158.0 158.6 160.2 161.1 162.1 4 Consumer goods 147.9 142.6 151.7 156.9 156.1 157.7 159.5 159.4 160.2' 161.5 162.1 162.7 5 Equipment 151.5 139.8 140.8 147.0 149.1 151.8 154.9 156.1 156.4' 158.3 159.8 161.2 6 Intermediate 154.4 143.3 156.6 166.5 165.5 165.4 167.8 169.0 170.2' 171.1 171.3 171.6 7 Materials 151.6 133.7 145.2 154.0 154.5 154.5 156.6 159.4 160.4' 161.8 162.0 162.9 Industry groupings 8 Manufacturing 150.4 137.6 148.2 156.2 156.4 156.8 159.5 161.4 162.1' 163.6 164.2 164.8 Capacity utilization (percent)1 9 Manufacturing 79.4 71.1 75.2 78.9 78.8 78.9 80.1 80.9 81.(y 81.6 81.7 81.8 10 Industrial materials industries 80.7 70.1 75.2 79.5 79.6 79.6 80.6 81.9 82.2' 82.7 82.7 82.9 11 Construction contracts (1977 = 100)2 111.0 111.0 138.0 139.0 145.0 134.0 150.0 150.0 144.0 145.0 165.0 n.a. 12 Nonagricultural employment, total3 138.5 136.2 136.8 138.8 139.3 139.9 140.4 141.1 141.4 142.0 142.4 142.9 13 Goods-producing, total 109.4 102.6 101.5 102.5 103.2 103.8 104.6 105.4 105.5' 106.2 106.6 107.2 14 Manufacturing, total 103.7 96.9 96.0 97.1 97.8 98.4 99.0 99.6 100.1 100.4 100.6 100.9 15 Manufacturing, production-worker ... 98.0 89.4 88.7 90.4 91.2 91.9 92.5 93.1 93.6 94.0 94.1 94.5 16 Service-producing 154.4 154.6 156.1 158.7 159.1 159.6 160.0 160.7 161.1 161.6 162.1 162.4 17 Personal income, total 386.5 409.3 435.3' 446.4 449.8 453.9 461.4' 464.8' 467.3' 470.0 472.8 4 18 Wages and salary disbursements 349.7 367.2 389.8 400.6 401.7 404.2 409.5 411.5 413.0 418.0 420.0 n.a. 19 Manufacturing 287.3 286.2 300.4 310.2 312.8 314.4 320.4 323.3 324.9' 329.2 329.6 1 20 Disposable personal income4 373.7 397.3 426.3 438.8 442.1 446.2 454.0 457.4' 460.1' 462.7 465.2 t 21 Retail sales5 330.6 326.0 373.0 385.6 389.3 391.4 407.3 403.0 396.9 410.8 413.0 416.4 Prices6 22 Consumer 272.4 289.1 298.4 302.6 303.1 303.5 305.2 306.6 307.3 308.8 309.7 n.a. 23 Producer finished goods 269.8 280.7 285.2 287.6 286.8 287.2 289.5' 290.6 291.7 291.4 291.5 n.a. 1. Ratios of indexes of production to indexes of capacity. Based on data from 5. Based on Bureau of Census data published in Survey of Current Business. Federal Reserve, McGraw-Hill Economics Department, Department of Com- 6. Data without seasonal adjustment, as published in Monthly Labor Review. merce, and other sources. Seasonally adjusted data for changes in the price indexes may be obtained from 2. Index of dollar value of total construction contracts, including residential, the Bureau of Labor Statistics, U.S. Department of Labor. nonresidential and heavy engineering, from McGraw-Hill Information Systems Company, F. W. Dodge Division. NOTE. Basic data (not index numbers) for series mentioned in notes 4, 5, and 6, 3. Based on data in Employment and Earnings (U.S. Department of Labor). and indexes for series mentioned in notes 3 and 7 may also be found in the Survey Series covers employees only, excluding personnel in the Armed Forces. of Current Business. 4. Based on data in Survey of Current Business (U.S. Department of Com- Figures for industrial production for the last two months are preliminary and merce). estimated, respectively. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1983 1984 1983 1984 1983 1984 series Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 151.8 155.5 159.8 162.9 196.4 197.3 198.4 199.7 77.3 78.8 80.5 81.5 2 Mining 116.1 121.0 124.2 124.6 165.4 165.5 165.7 165.9 70.2 73.1 75.0 75.1 3 Utilities 178.2 178.4 179.2 183.5 211.1 212.4 213.8 215.3 84.4 84.0 83.8' 85.2 4 Manufacturing 152.8 156.5 161.0 164.2 197.5 198.4 199.5' 201.0 77.4 78.9 80.7 81.7 i Primary processing 152.8 156.4 160.5 162.7 195.3 195.8 196.5' 197.2 78.3 79.9 81.7' 82.5 6 Advanced processing 152.8 156.1 161.7' 164.7 198.6 199.7 201.0 203.0 76.9 78.2 80.3 81.1 7 Materials 149.9 154.3 158.8 162.2 193.4 194.0 194.7 195.9 77.5 79.6 81.6 82.8 8 Durable goods 144.2 150.3 157.6 161.9 196.0 196.5 197.1 198.3 73.6 76.5 79.9 81.6 9 Metal materials 89.3 93.8 97.3' 99.5 139.8 139.6 139.1 138.5 63.9 67.2 70.(K 71.9 10 Nondurable goods 179.1 183.5 183.7 186.7 219.6 220.6 221.8 223.4 81.5 83.2 82.8 83.5 11 Textile, paper, and chemical 188.0 193.2 193.2 196.3 231.6 232.7 234.2 236.2 81.2 83.0 82.5 83.0 12 Paper 162.8 167.4 165.8' n.a. 166.9 167.7 168.5 n.a. 97.5 99.8 98.4' n.a. 13 Chemical 227.8 235.0 236.7' n.a. 298.3 300.1 302.3 n.a. 76.4 78.3 78.3' n.a. 14 Energy materials 127.4 127.8 131.2 132.8 154.7 155.3 155.8 156.4 82.3 82.3 84.2 84.9 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 High Low High Low June Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May' June Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 69.6 74.8 78.7 78.7 79.0 80.1 80.7 80.9 81.4 81.5 81.7 16 Mining 91.8 86.0 88.5 69.6 68.1 71.5 73.2 74.7 75.4 74.9 74.7 74.2 75.1 75.9 17 Utilities 94.9 82.0 86.7 79.0 80.8 83.3 83.0 85.7 84.8 82.5 84.0 85.1 84.7 85.8 18 Manufacturing 87.9 69.0 87.5 68.8 74.9 78.9 78.8 78.9 80.1 80.9 81.0 81.6 81.7 81.8 19 Primary processing 93.7 68.2 91.4 66.2 75.7 80.4 80.0 79.2 80.6 82.2 82.2 82.4 82.6 82.5 20 Advanced processing .... 85.5 69.4 85.9 70.0 74.4 77.9 78.0 78.6 80.0 80.4 80.6' 81.0 81.1 81.2 21 Materials 92.6 69.3 88.9 66.6 74.4 79.5 79.6 79.6 80.6 81.9 82.2 82.7 82.7 82.9 22 Durable goods 91.4 63.5 88.4 59.8 70.0 76.1 76.5 77.0 78.5 80.5 80.7' 81.6 81.5 81.7 23 Metal materials 97.8 68.0 95.4 46.2 61.2 68.0 66.8 66.8 67.3 71.1 71.5' 73.0 71.8 70.8 24 Nondurable goods 94.4 67.4 91.7 70.7 79.6 84.1 83.8 81.6 81.9 83.0 83.6 83.4 83.6 83.6 25 Textile, paper, and chemical 95.1 65.4 92.3 68.6 79.2 84.1 83.7 81.2 81.5 82.8 83.1 82.9 83.1 83.1 26 Paper 99.4 72.4 97.9 86.3 93.1 99.4 101.3 98.8 99.3 99.0 96.8' 98.5 97.0 n.a. 27 Chemical 95.5 64.2 91.3 64.0 75.3 79.7 79.0 76.2 76.7 78.6 79.5' 79.0 79.5 n.a. 28 Energy materials 94.5 84.4 88.9 78.5 78.8 81.4 81.8 83.6 84.4 84.1 84.1 84.7 84.5 85.4 1. Monthly high 1973; monthly low 1975. 2. Monthly highs 1978 through 1980; monthly lows 1982. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1983 1984 CCaatteeggoorryy 11998811 11998822 11998833 Nov. Dec. Jan. Feb. Mar. Apr. May June HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 172,272 174,450 176,414 177,151 177,325 177,733 177,882 178,033 178,185 178,337 178,501 2 Labor force (including Armed Forces)1 110,812 112,383 113,749 114,235 114,340 114,415 114,896 115,121 115,461 116,017 116,094 3 Civilian labor force 108,670 110,204 111,550 112,035 112,136 112,215 112,693 111122,,991122 111133,,224455 111133,,880033 111133,,887777 Employment 4 Nonagricultural industries2 97,030 96,125 97,450 99,349 99,585 99,918 100,496 100,859 101,009 101,899 102,344 5 Agriculture 3,368 3,401 3,383 3,257 3,356 3,271 3,395 3,281 33,,339933 33,,338899 33,,440033 Unemployment 6 Number 8,273 10,678 10,717 9,429 9,195 9,026 8,801 8,772 8,843 8,514 8,130 7 Rate (percent of civilian labor force) ... 7.6 9.7 9.6 8.4 8.2 8.0 7.8 7.8 7.8 7.5 7.1 8 Not in labor force 61,460 62,067 62,665 62,916 62,985 63,318 62,986 62,912 62,724 62,320 62,407 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 91,156 89,596 89,986 91,688 92,026 92,391 92,846 93,058 93,449' 93,718' 94,019 10 Manufacturing 20,170 18,853 18,678 19,018 19,143 19,254 19,373 19,466 19,530' 19,569' 19,630 11 Mining 1,132 1,143 1,021 967 969 975 978 978 984' 993 997 12 Contract construction 4,176 3,911 3,949 4,073 4,086 4,154 4,226 4,151 4,246' 4,288' 4,363 13 Transportation and public utilities 5,157 5,081 4,943 5,043 5,055 5,095 5,105 5,112 5,129' 5,142' 5,160 14 Trade 20,551 20,401 20,508 21,149 21,228 21,320 21,418 21,493' 21,568 21,635' 21,709 15 Finance 5,301 5,340 5,456 5,530 5,546 5,573 5,593 5,613 5,640 5,661' 5,665 16 Service 20,547 19,064 19,685 20,034 20,130 20,162 20,278 20,378 20,449 20,538' 20,664 17 Government 16,024 15,803 15,747 15,874 15,869 15,858 15,875 15,873 15,903' 15,896' 15,836 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 • July 1984 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1967 1983 1984 n pro- 1983 por- avg. tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. May? Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.6 146.4 149.7 151.8 153.8 155.0 155.3 156.2 158.5 160.0 160.8 162.2 162.8 2 Products 60.71 149.2 148.1 150.9 153.2 154.9 155.6 155.8 157.4 159.7 160.4 161.1 162.5 163.3 3 Final products 47.82 147.1 146.4 149.0 150.7 152.1 152.7 153.2 155.2 157.5 158.0 158.6 160.2 161.1 4 Consumer goods 27.68 151.7 152.4 154.8 156.3 157.4 156.9 156.1 157.7 159.5 159.4 160.2 161.5 162.1 5 Equipment 20.14 140.8 138.2 141.0 143.1 144.9 147.0 149.1 151.8 154.9 156.1 156.4 158.3 159.8 6 Intermediate products 12.89 156.6 154.5 158.1 162.2 165.3 166.5 165.5 165.4 167.8 169.0 170.2 171.1 171.3 7 Materials 39.29 145.2 143.7 147.8 149.7 152.3 154.0 154.5 154.5 156.6 159.4 160.4 161.8 162.0 Consumer goods 8 Durable consumer goods 7.89 147.5 149.2 152.9 154.2 157.4 156.7 155.9 158.6 163.4 162.5 163.1 162.5 162.2 9 Automotive products 2.83 158.2 160.0 167.0 168.1 172.9 171.3 171.5 178.4 184.5 182.1 184.1 180.9 179.7 10 Autos and utility vehicles 2.03 134.0 135.4 145.4 147.0 153.1 149.2 149.2 157.8 163.3 162.2 164.1 158.4 155.9 11 Autos 1.90 117.4 118.3 129.8 132.0 135.0 129.6 129.4 137.4 140.7 140.4 142.4 134.5 132.9 12 Auto parts and allied goods .80 219.6 222.6 221.9 221.8 223.1 227.4 228.2 230.7 238.4 232.6 234.7 238.0 239.9 13 Home goods 5.06 141.4 143.2 144.9 146.4 148.7 148.4 147.2 147.5 151.5 151.5 151.3 152.2 152.4 14 Appliances, A/C, and TV 1.40 116.4 114.4 116.2 121.2 125.2 129.2 127.0 126.3 136.4 135.1 134.4 136.1 134.7 15 Appliances and TV 1.33 120.1 118.4 119.7 125.0 129.7 133.3 131.3 130.2 140.0 138.6 138.0 138.8 137.4 16 Carpeting and furniture 1.07 178.1 185.6 187.3 187.5 186.3 185.5 182.7 184.0 183.1 178.7 180.2 182.2 182.9 17 Miscellaneous home goods 2.59 139.9 141.3 143.0 143.2 145.9 143.6 143.4 143.9 146.7 149.1 148.5 148.5 149.4 18 Nondurable consumer goods 19.79 153.4 153.6 155.6 157.1 157.5 157.1 156.1 157.3 157.9 158.2 159.1 161.1 162.0 19 Clothing 4.29 20 Consumer staples 15.50 163.7 164.3 166.1 168.0 168.0 167.2 165.4 166.0 166.5 166.9 168.0 170.2 171.4 •>1 8.33 153.5 155.9 156.6 156.3 154.9 156.0 154.5 155.4 156.5 156.8 157.6 160.3 22 Nonfood staples 7.17 175.4 174.1 177.2 181.6 183.2 180.3 178.1 178.3 178.2 178.7 180.1 181.7 183.1 23 Consumer chemical products 2.63 231.0 229.0 233.8 239.7 241.5 238.7 232.4 229.9 231.6 231.9 231.3 233.4 235.0 24 Consumer paper products 1.92 132.7 130.1 132.6 137.4 138.2 137.6 136.6 137.2 138.8 140.3 141.8 144.0 144.9 25 Consumer energy products 2.62 150.9 151.2 153.2 155.7 157.7 153.0 154.1 156.5 153.4 153.3 156.8 157.3 159.0 2266 11..4455 117733..44 117700..55 117733..22 117799..99 118822..88 117744..55 117755..88 118855..22 118800..00 117722..88 117777..77 117777..88 Equipment 2/ Business 12.63 153.3 150.2 153.3 156.6 158.8 161.3 164.1 167.3 170.7 171.9 172.1 173.5 175.4 28 Industrial 6.77 120.4 116.3 119.9 124.3 125.6 126.6 128.6 130.8 133.7 134.6 134.8 135.9 137.9 29 Building and mining 1.44 159.3 148.7 154.4 159.2 160.8 166.9 175.8 185.3 185.1 182.0 175.2 173.6 181.9 30 Manufacturing 3.85 107.1 105.0 108.9 113.3 115.0 114.6 114.3 115.1 119.7 120.9 124.2 126.2 126.6 31 Power 1.47 117.1 114.1 114.6 119.0 118.8 118.5 119.4 118.4 120.0 123.8 122.7 124.1 124.5 32 Commercial transit, farm 5.86 191.3 189.5 191.9 194.0 196.7 201.3 205.1 209.6 213.3 215.1 215.3 216.9 218.7 33 Commercial 3.26 273.2 270.9 276.0 277.4 281.2 288.1 292.5 298.9 303.2 305.9 306.9 309.8 312.4 34 Transit 1.93 95.2 93.2 92.0 95.9 97.6 100.0 103.2 106.0 110.1 110.1 109.2 108.9 110.2 35 Farm .67 69.5 70.4 70.8 70.8 71.0 70.9 73.5 73.5 73.6 75.7 75.0 76.0 74.9 36 Defense and space 7.51 119.9 118.0 120.4 120.2 121.8 122.9 124.0 125.7 128.3 129.5 130.1 132.8 133.6 Intermediate products 37 Construction supplies 6.42 142.5 142.1 145.8 149.0 151.1 152.3 151.6 151.5 155.5 156.6 159.1 159.9 159.7 38 Business supplies 6.47 170.7 166.8 170.4 175.3 179.3 180.6 179.4 179.3 180.1 181.3 181.3 182.2 182.8 39 Commercial energy products 1.14 184.3 181.4 185.2 186.9 190.2 187.0 187.6 188.0 192.1 191.6 187.0 190.0 189.4 Materials 40 Durable goods materials 20.35 138.6 137.0 141.1 144.2 147.2 149.4 150.3 151.3 154.6 158.6 159.5 161.6 161.7 41 Durable consumer parts 4.58 113.6 109.5 115.6 119.9 123.1 124.9 125.0 127.9 131.6 133.1 133.0 133.2 133.5 42 Equipment parts 5.44 176.4 175.8 180.8 183.6 186.0 188.3 192.5 193.4 198.2 204.0 206.7 210.9 211.6 43 Durable materials n.e.c 10.34 129.9 128.7 131.5 134.2 137.4 139.8 139.3 139.5 141.8 146.0 146.3 148.2 147.9 44 Basic metal materials 5.57 90.2 89.6 90.8 93.1 94.5 98.0 97.1 96.9 97.7 103.0 103.0 105.6 103.9 45 Nondurable goods materials 10.47 174.5 174.3 177.0 178.0 183.4 185.3 184.8 180.3 181.2 184.1 185.9 186.0 186.7 46 Textile, paper, and chemical materials 7.62 182.6 182.8 186.1 186.4 192.0 195.4 194.7 189.6 190.5 193.9 195.3 195.5 196.2 47 Textile materials 1.85 116.2 116.0 119.0 121.5 123.1 124.0 121.9 121.3 119.9 119.9 120.6 119.9 120.0 48 Paper materials 1.62 158.2 155.0 161.1 161.8 165.4 166.3 169.8 166.0 167.0 166.8 163.5 166.7 164.4 49 Chemical materials 4.15 221.7 223.6 225.9 225.1 233.1 238.7 237.0 229.3 231.3 237.6 241.1 240.5 242.7 50 Containers, nondurable 1.70 167.9 166.1 166.5 170.6 179.1 175.9 176.6 173.0 173.5 173.0 176.0 175.7 175.9 51 Nondurable materials n.e.c 1.14 130.5 129.9 131.3 133.0 132.6 131.9 130.6 129.5 130.5 135.2 137.7 138.5 139.1 52 Energy materials 8.48 124.8 121.8 127.7 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.3 132.3 132.1 53 Primary energy 4.65 114.7 112.6 115.4 113.9 112.8 114.1 115.5 117.6 119.3 121.3 119.6 119.3 120.2 54 Converted fuel materials 3.82 137.0 132.9 142.7 145.2 142.8 141.2 141.1 145.1 145.8 142.8 145.4 148.2 146.5 Supplementary groups 55 Home goods and clothing 9.35 129.9 130.2 132.3 133.3 135.2 135.5 135.9 137.6 140.1 140.3 140.1 141.3 141.2 56 Energy, total 12.23 135.9 133.6 138.5 139.4 139.0 137.7 138.5 141.1 141.6 141.4 141.9 143.0 143.2 57 Products 3.76 161.0 160.4 162.9 165.2 167.5 163.3 164.3 166.0 165.1 164.9 166.0 167.2 168.2 58 Materials 8.48 124.8 121.8 127.7 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.3 132.3 132.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A45 2.13 Continued 1967 1983 1984 SIC 1983 GGrroouuppiinngg code por- avg. tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar/ Apr. MayP Index (1967 = 100) MAJOR INDUSTRY 1 12.05 142.9 139.6 143.8 146.0 146.5 145.8 147.2 151.5 151.4 148.9 150.4 151.3 151.9 7 6.36 116.6 112.6 115.0 116.1 117.1 118.3 121.1 123.7 124.8 124.1 123.8 123.1 124.6 3 Utilities 5.69 172.4 169.8 176.0 179.3 179.3 176.5 176.3 182.5 181.0 176.5 180.0 182.9 182.5 4 3.88 196.0 192.0 200.9 205.4 204.5 200.7 200.2 208.0 206.8 200.0 204.6 207.9 207.0 5 87.95 148.2 147.4 150.6 152.8 155.1 156.2 156.4 156.8 159.5 161.4 162.1 163.6 164.2 6 35.97 168.1 167.8 170.6 172.9 174.6 175.6 174.8 173.9 175.2 177.2 177.6 179.2 179.9 7 5511..9988 113344..55 113333..22 113366..88 113388..88 141.6 142.8 143.6 145.0 148.6 150.5 151.4 152.8 153.3 Mining 8 Metal 10 .51 80.9 82.9 82.5 80.9 78.7 81.0 84.6 82.3 89.4 97.4 100.0 99.8 99.8 9 Coal 11.12 .69 136.3 124.6 139.9 141.2 140.5 142.7 144.8 145.2 151.5 163.2 164.0 151.4 153.4 10 Oil and gas extraction 13 4.40 116.6 112.6 113.9 114.7 116.3 117.3 119.8 123.4 123.1 119.6 118.2 118.6 120.5 11 Stone and earth minerals 14 .75 122.8 121.7 121.2 125.0 126.5 127.4 132.2 133.9 134.8 133.0 135.8 139.4 139.5 Nondurable manufactures 1? Foods 20 8.75 156.4 157.7 159.9 159.3 158.2 157.6 157.1 157.7 159.4 160.0 161.2 163.0 13 Tobacco products 21 .67 112.1 120.0 112.9 117.1 112.7 109.1 109.5 112.3 116.4 110.9 111.8 113.3 14 Textile mill products 22 2.68 140.8 141.8 146.7 147.4 148.7 148.7 145.8 145.0 143.9 142.3 143.5 141.7 141.5 1<i 23 3.31 16 Paper and products 26 3.21 164.3 163.0 165.1 168.6 170.4 171.5 172.1 170.1 172.3 176.6 173.8 173.2 171.8 17 Printing and publishing 27 4.72 152.5 147.4 152.0 157.8 161.7 162.7 162.0 161.7 163.4 164.8 165.2 165.4 166.5 18 Chemicals and products 28 7.74 215.0 214.7 218.3 220.3 224.1 228.4 225.6 221.1 221.5 224.8 225.0 228.6 228.9 19 Petroleum products 29 1.79 120.3 123.0 124.3 123.2 125.1 123.6 125.4 114.4 118.8 127.6 127.0 127.8 129.5 20 Rubber and plastic products 30 2.24 291.9 293.8 296.1 306.9 310.9 310.8 309.1 314.4 317.2 318.5 323.8 327.0 330.8 21 Leather and products 31 .86 61.9 60.1 62.3 64.4 64.2 64.0 63.2 66.0 61.4 63.9 63.9 63.3 64.8 Durable manufactures 22 Ordnance, private and government ... 19.91 3.64 95.4 93.3 95.2 96.8 98.0 98.8 99.3 99.8 99.7 99.6 100.6 101.4 101.9 7,3 Lumber and products 24 1.64 137.2 137.4 141.3 141.6 142.3 141.7 141.0 143.8 146.0 145.6 149.3 151.2 149.5 24 Furniture and fixtures 25 1.37 170.5 173.1 175.2 179.0 180.7 181.0 177.5 177.9 183.8 185.6 184.6 186.0 185.9 25 Clay, glass, stone products 32 2.74 143.4 141.7 145.8 147.9 151.7 151.9 152.7 153.8 157.8 160.4 160.2 161.3 161.8 26 Primary metals 33 6.57 85.4 84.8 85.5 87.5 90.6 95.3 92.2 90.4 93.2 98.4 97.5 99.3 97.6 77 Iron and steel 331.2 4.21 71.5 69.7 71.8 75.1 78.2 84.3 79.2 74.1 80.7 86.0 84.4 84.0 82.9 28 Fabricated metal products 34 5.93 120.2 118.5 122.7 126.0 127.4 26.9 128.5 129.2 131.7 132.8 134.9 135.8 137.5 79 Nonelectrical machinery 35 9.15 150.6 149.5 154.2 157.3 158.3 159.2 161.8 164.3 169.5 170.9 171.9 175.2 176.5 30 Electrical machinery 36 8.05 185.5 182.4 188.3 189.2 195.8 198.4 200.1 201.5 206.2 209.9 212.0 214.2 215.3 31 Transportation equipment 37 9.27 117.8 116.6 119.7 121.1 124.7 125.5 127.3 130.8 134.9 135.2 135.8 134.6 135.4 32 Motor vehicles and parts 371 4.50 137.1 136.2 142.3 144.3 150.9 150.9 152.9 158.9 166.3 164.4 165.8 161.9 163.0 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 99.6 98.1 98.5 99.2 100.0 101.6 103.2 104.3 105.3 107.7 107.5 108.8 109.4 34 Instruments 38 2.11 158.7 156.1 159.3 161.6 163.6 163.0 163.0 164.6 167.8 168.6 169.7 171.8 171.6 35 Miscellaneous manufactures 39 1.51 146.2 151.0 153.7 153.1 151.7 149.1 148.9 149.3 151.1 152.0 152.3 152.9 153.2 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 612.6 610.5 620.5 626.6 637.0 637.8 638.4 645.4 655.1 656.9 661.8 662.1 37 Final 390.9 472.6 471.8 478.2 481.8 489.9 490.7 490.8 497.8 505.3 505.0 509.6 509.4 38 Consumer goods. 277.5 328.7 330.4 333.7 336.7 341.6 340.2 338.3 341.9 345.3 345.3 347.7 348.0 39 Equipment 113.4 144.0 141.4 144.5 145.1 148.4 150.5 152.5 155.9 160.0 159.7 161.9 161.4 40 Intermediate 116.6 140.0 138.7 142.3 144.8 147.1 147.1 147.6 147.6 149.8 151.9 152.2 152.7 1. 1972 dollar value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • July 1984 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1983 1984 IItteemm 11998811 11998822 11998833 Aug. Sept. Oct. Nov. Dec. Jan. Feb/ Mar/ Apr/ May Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 986 1,001 1,605 1,671 1,540 1,650 1,649 1,602 1,799 1,902 1,727 1,758 1,735 2 1-family 564 546 902 900 864 905 919 913 989 1,083 974 957 898 3 2-or-more-family 421 454 703 771 676 745 730 689 810 819 753 801 837 4 Started 1,084 1,062 1,703 1,873 1,679 1,672 1,730 1,694 1,980 2,262 1,662 1,990 1,782 5 1-family 705 663 1,068 1,124 1,038 1,017 1,074 1,021 1,301 1,463 1,071 1,191 1,093 6 2-or-more-family 379 400 636 749 641 655 656 673 679 799 591 799 689 7 Under construction, end of period1 682 720 1,003 979 991 994 1,011 1,020 1,032 1,033 1,076 1.096 | 8 1-family 382 400 524 544 545 542 543 542 552 557 572 584 9 2-or-more-family 301 320 479 434 446 452 468 478 480 477 496 512 10 Completed 1,266 1,006 1,391 1,716 1,512 1,567 1,445 1,489 1,606 1,565 1,590 1,625 n.1a. 11 1-family 818 631 924 1,029 1,006 1,028 994 986 1,014 1,034 1,034 971 12 2-or-more-family 447 374 466 687 506 539 451 503 592 531 556 654 \ 13 Mobile homes shipped 241 24(K 295 307 305 308 313 310 314 293 287 287 Merchant builder activity in 1-family units 14 Number sold 436 413 622 558 597 624 636 755 681 712 682 640 612 15 Number for sale, end of period1 278 255 303 2% 299 301 304 300 302 303 321 330 335 PPrriiccee ((tthhoouussaannddss ooff ddoollllaarrss))22 MMeeddiiaann 1166 UUnniittss ssoolldd 68.8 69.3 75.5 76.8 81.0 75.9 75.9 75.9 76.2 79.2 78.5 79.4 80.9 AAvveerraaggee 1177 UUnniittss ssoolldd 83.1 83.8 89.9 91.3 97.8 89.5 91.4 91.7 92.2 94.4 97.8 95.9 101.0 EXISTING UNITS (1-family) 18 Number sold 2,418 1,991 2,719 2,760 2,770 2,720 2,700 2,850 2,890 2,910 3,020 3,090 3,050 Price of units sold (thousands of dollars)2 19 Median 66.1 67.7 69.8 71.5 69.9 69.8 70.4 69.9 71.3 71.8 72.2 72.5 73.3 20 Average 78.0 80.4 82.5 84.7 82.8 83.0 83.4 82.9 84.8 84.9 85.1 86.1 86.7 Value of new construction3 (millions of dollars)'' CONSTRUCTION 21 Total put in place 239,112 230,068 262,167 277,965 281,725 267,930 267,017 263,867 280,897 300,355 309,744 304,952 310,399 ?? 185,761 179,090 211,369 224,694 229,616 219,164 217,444 213,272 229,972 248,104 254,958 250,620 255,235 73 Residential 86,564 74,808 111,727 126,841 128,573 118,605 113,455 109,706 121,931 137,403 141,087 133,653 132,914 74 Nonresidential, total 9999,,119977 104,282 99,642 97,853 101,043 100,559 103,989 103,566 108,041 110,701 113,871 116,967 122,321 Buildings 75 Industrial 17,031 17,346 12,863 13,570 12,617 10,363 11,632 12,208 12,872 13,969 14,363 1133,,770055 15,162 76 Commercial 34,243 37,281 35,787 36,404 37,173 37,441 38,132 37,364 41,057 42,076 45,280 47,497 50,396 77 Other 9,543 10,507 11,660 11,839 12,144 12,243 12,028 11,854 12,742 12,999 13,190 13,382 13,706 28 Public utilities and other 38,380 39,148 39,332 36,040 39,109 40,512 42,197 42,140 41,370 41,657 41,038 42,383 43,057 79 Public 53,346 50,977 50,798 53,271 52,109 48,766 49,573 50,596 50,925 52,251 54,786 54,331 55,165 30 Military 1,966 2,205 2,544 2,380 2,630 2,590 3,064 2,898 2,608 2,474 2,872 2,992 2,860 31 Highway 13,599 13,428 14,225 15,675 15,092 14,397 14,059 14,666 14,240 14,993 16,205 16,526 15,999 3? Conservation and development 5,300 5,029 4,822 5,078 4,995 4,041 3,916 4,984 4,319 4,608 4,531 4,537 5,591 33 Other 32,481 30,315 29,207 30,138 29,392 27,738 28,534 28,048 29,758 30,176 31,178 30,276 30,715 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 f e r a om rli e 1 r 2 Change ( a f t r o a m nn u 3 a m l o r n at t e h ) s earlier Change from 1 month earlier IIInnndddeeexxx llleeevvveeelll IIIttteeemmm MMMaaayyy 1983 1984 1984 111999888444 11998833 11998844 (((111999666777 MMaayy MMaayy === 111000000)))''' June Sept. Dec. Mar. Jan. Feb. Mar. Apr. May CONSUMER PRICES2 1 All items 3.5 4.2 5.4 4.5 4.0 5.0 .6 .4 .2 .5 .2 309.7 ? Food 2.4 3.1 1.7 1.1 4.3 9.0 1.6 .7 -.1 .0 -.3 301.4 3 Energy items 4.8 1.1 19.1 3.4 -1.7 -1.4 -.4 .2 -.2 .7 .2 426.1 4 All items less food and energy 3.6 5.1 4.2 5.9 4.9 5.1 .5 .3 .4 .5 .3 299.3 5 Commodities 4.7 4.9 3.2 6.8 4.6 3.4 .2 .2 .4 .6 .2 252.5 6 Services 2.6 5.3 4.8 5.2 5.3 5.9 .7 .4 .4 .5 .4 353.3 PRODUCER PRICES 7 Finished goods 2.3 2.6 2.6 2.0 1.1 6.0 .6 .4 .5 .0 .0 291.5 8 Consumer foods .1 3.7 -.9 2.5 5.8 17.4 2.6' .6' .8 -.6 -1.2 272.3 9 Consumer energy 1.4 -.3 12.9 -1.3 -10.4 -7.2 -1.2' .6' -1.2 .7 1.5 766.4 10 Other consumer goods 3.3 2.6 2.2 2.7 1.5 4.7 .2' .1' .9 -.1 .1 245.5 11 Capital equipment 3.0 2.7 1.7 2.1 1.8 4.3 .2 .5 .3 .3 .2 294.3 12 Intermediate materials3 .0 3.4 2.8 4.0 2.5 2.6 -.1' .2 .5 .1 .3 325.4 13 Excluding energy .9 3.4 2.8 3.6 4.1 3.5 .1' .2 .6 .1 .1 303.7 Crude materials 14 Foods -2.3 4.2 -5.8 15.6 12.1 13.7 2.2' -3.C 4.2 -1.2 -2.7 267.2 IS Energy .9 -.5 -5.1 -1.7 -2.3 -1.3 .3' .1 -.8 .4 .4 786.9 16 Other 1.6 12.1 49.1 16.6 2.4 -9.2 -3.4 .8 .2 2.9 2.6 277.4 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 • July 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 3,550.1 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 2,286.2 3 Durable goods 236.1 244.5 279.4 258.5 277.7 282.8 298.6 315.1 4 Nondurable goods 733.9 761.0 804.1 777.1 799.6 814.8 825.0 843.2 5 Services 887.1 986.4 1,074.5 1,037.4 1,069.7 1,083.5 1,107.3 1,127.9 6 Gross private domestic investment 474.9 414.5 471.9 404.1 450.1 501.1 532.5 604.6 7 Fixed investment 456.5 439.1 478.4 443.5 464.6 492.5 512.8 533.5 8 Nonresidential 352.2 348.3 348.4 332.1 336.3 351.0 374.0 385.7 9 Structures 133.4 141.9 131.1 132.9 127.4 130.9 133.3 140.1 10 Producers' durable equipment 218.8 206.4 217.2 199.3 208.8 220.2 240.7 245.6 11 Residential structures 104.3 90.8 130.0 111.3 128.4 141.5 138.8 147.8 12 Nonfarm 99.8 86.0 124.9 106.7 123.3 136.3 133.5 142.6 13 Change in business inventories 18.4 -24.5 -6.4 -39.4 -14.5 8.5 19.6 71.0 14 Nonfarm 10.9 -23.1 -2.8 -39.0 -10.3 18.4 19.7 50.1 15 Net exports of goods and services 26.3 17.4 -9.0 17.0 -8.5 -18.3 -26.1 -48.2 16 Exports 368.8 347.6 335.4 326.9 327.1 341.1 346.5 358.8 17 Imports 342.5 330.2 344.4 309.9 335.6 359.4 372.6 407.0 18 Government purchases of goods and services 595.7 649.2 689.5 677.4 683.4 698.3 699.0 707.6 19 Federal 229.2 258.7 274.8 273.5 273.7 278.1 274.1 271.9 20 State and local 366.5 390.5 414.7 404.0 409.7 420.2 424.9 435.7 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 3,479.1 22 Goods 1,291.8 1,280.8 1,366.5 1,292.2 1,346.8 1,388.9 1,438.2 1,498.3 23 Durable 528.0 500.8 548.7 482.7 536.8 568.9 606.4 617.3 24 Nondurable 763.9 780.1 817.8 809.5 810.0 820.0 831.8 881.0 25 Services 1,374.2 1.511.2 1,635.6 1,588.4 1,623.4 1,651.0 1,679.6 1,715.7 26 Structures 288.0 281.0 308.4 290.9 301.9 322.3 318.5 336.2 27 Change in business inventories 18.4 -24.5 -6.4 -39.4 -14.5 8.5 19.6 71.0 28 Durable goods 3.6 -15.5 -3.9 -38.2 -8.9 13.1 18.3 22.7 29 Nondurable goods 14.8 -9.1 -2.5 -1.2 -5.7 -4.5 1.4 48.3 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 1,609.3 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 2,883.3 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 33 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 1,417.2 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 120.2 109.0 128.5 120.6 127.2 126.7 139.4 169.3 40 Business and professional1 89.7 87.4 107.6 98.4 106.2 111.2 114.5 121.4 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 profits1 192.3 164.8 229.1 181.8 218.2 248.4 268.2 281.6 44 Profits before tax3 227.0 174.2 207.5 169.7 203.3 229.1 228.2 244.3 45 Inventory valuation adjustment -23.6 -8.4 -9.2 -1.7 -10.6 -18.3 -6.3 -12.5 46 Capital consumption adjustment -11.0 -1.1 30.8 13.9 25.6 37.6 46.2 49.8 47 Net interest 249.9 261.1 247.5 248.3 243.8 246.1 251.9 262.0 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 Q1 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 2,926.2 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 3 Commodity-producing industries 509.5 509.2 529.7 508.6 522.2 537.8 550.0 567.2 4 Manufacturing 385.3 383.8 402.8 385.4 397.4 409.2 419.0 433.0 5 Distributive industries 361.6 378.8 397.2 386.4 394.3 398.9 409.3 415.3 6 Service industries 337.7 374.1 411.5 396.4 407.3 416.4 425.8 434.7 1 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 120.2 109.0 128.5 120.6 127.2 126.7 139.4 169.3 10 Business and professional1 89.7 87.4 107.6 98.4 106.2 111.2 114.5 121.4 11 Farm1 30.5 21.5 20.9 22.2 21.0 15.5 25.0 47.9 12 Rental income of persons2 41.4 49.9 54.8 54.1 54.8 53.9 56.2 57.0 62.8 66.4 70.5 68.8 69.3 70.9 72.9 75.1 14 Personal interest income 341.3 366.2 366.3 357.2 357.1 369.9 381.1 396.3 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 2,926.2 19 LESS: Personal tax and nontax payments 387.4 402.1 406.5 401.8 412.6 400.1 411.4 421.3 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 2,504.9 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 2,356.5 22 EQUALS: Personal saving 135.3 125.4 113.6 121.7 91.5 115.8 125.6 148.4 MEMO Per capita (1972 dollars) 23 Gross national product 6,584.1 6,399.3 6,552.8 6,381.5 66,,551188..00 66,,662222..55 66,,668877..55 66,,882299..88 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 4,449.0 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 5.9 GROSS SAVING 27 Gross saving 483.8 405.8 439.6 398.5 420.6 455.4 484.0 537.6 28 Gross private saving 509.6 521.6 569.9 541.5 535.0 587.2 615.7 647.8 29 Personal saving 135.3 125.4 113.6 121.7 91.5 115.8 125.6 148.4 30 Undistributed corporate profits1 44.8 37.0 78.9 48.9 70.1 89.7 107.0 110.7 31 Corporate inventory valuation adjustment -23.6 -8.4 -9.2 -1.7 -10.6 -18.3 -6.3 -12.5 Capital consumption allowances 32 Corporate 202.9 222.0 231.6 228.3 222299..88 223333..11 223355..22 223388..55 33 Noncorporate 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 --113311..88 --111100..22 -62.2 -147.1 -181.6 -183.3 -166.1 -187.3 -189.8 -170.7 37 State and local 35.3 31.3 51.4 40.4 51.7 55.5 58.1 60.5 38 Capital grants received by the United States, net 1.1 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 478.9 406.2 437.4 397.4 417.1 457.9 477.1 530.1 40 Gross private domestic 474.9 414.5 471.9 404.1 450.1 501.1 532.5 604.6 41 Net foreign 4.0 -8.3 -34.6 -6.7 -33.0 -43.2 -55.3 -74.5 42 Statistical discrepancy -4.9 .5 -2.3 -1.2 -3.5 2.5 -6.7 -7.5 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • July 1984 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.' 1983 R 1984 IItteemm ccrreeddiittss oorr ddeebbiittss 11998811'' 11998822'' 11998833'' Ql Q2 Q3 Q4 Ql p 1 Balance on current account 6,294 -9,199 -41,563 -2,943 -9,560 -11,846 -17,213 -19,408 -2,332 -8,769 -14,498 -15,964 -18,360 3 Merchandise trade balance2 -28,001 -36,469 -61,055 -9,277 -14,870 -17,501 -19,407 -25,641 4 Merchandise exports 237,085 211,198 200,257 49,246 48,745 50,437 51,829 54,164 5 Merchandise imports -265,086 -247,667 -261,312 -58,523 -63,615 -67,938 -71,236 -79,805 6 Military transactions, net -1,116 195 515 790 53 -55 -273 -284 7 Investment income, net3 34,053 27,802 23,508 5,238 5,978 7,172 5,119 7,619 8 Other service transactions, net 8,191 7,331 4,121 1,879 1,127 681 434 1,050 9 Remittances, pensions, and other transfers -2,382 -2,635 -2,590 -599 -638 -665 -688 -723 10 U.S. government grants (excluding military) -4,451 -5,423 -6,060 -974 -1,210 -1,478 -2,398 -1,429 11 Change in U.S. government assets, other than official reserve assets, net (increase, —) -5,107 -6,143 -5,013 -1,130 -1,251 -1,204 -1,429 -1,989 12 Change in U.S. official reserve assets (increase, -) -5,175 -4,965 -1,196 -787 16 529 -953 -657 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -1,823 -1,371 -66 -98 -303 -209 545 -226 15 Reserve position in International Monetary Fund -2,491 -2,552 -4,434 -2,139 -212 -88 -1,996 -200 16 Foreign currencies -861 -1,041 3,304 1,450 531 826 498 -231 17 Change in U.S. private assets abroad (increase, -)3 -100,694 -107,790 -43,281 -22,447 175 -8,548 -12,461 -3,281 18 Bank-reported claims -84,175 -111,070 -25,391 -18,175 3,894 -2,871 -8,239 -334 19 Nonbank-reported claims -1,181 6,626 -5,333 -3,199 -230 -233 -1,671 n.a. 20 U.S. purchase of foreign securities, net -5,714 -8,102 -7,676 -1,866 -3,257 -1,571 -983 244 21 U.S. direct investments abroad, net3 -9,624 4,756 -4,881 793 -232 -3,873 -1,568 -3,191 22 Change in foreign official assets in the United States (increase, +) 5,003 3,318 5,339 -252 1,739 -2,703 6,555 -2,859 23 U.S. Treasury securities 5,019 5,728 6,989 3,012 1,985 -611 2,603 -269 24 Other U.S. government obligations 1,289 -694 -487 -371 -170 -363 417 -36 25 Other U.S. government liabilities4 -300 382 199 -533 434 137 161 185 26 Other U.S. liabilities reported by U.S. banks -3,670 -1,747 433 -1,978 316 -1,403 3,498 -2,140 27 Other foreign official assets5 2,665 -351 -1,795 -382 -826 -463 -124 -599 28 Change in foreign private assets in the United States (increase, +)3 76,310 91,863 76,383 16,139 10,714 22,281 27,249 14,662 29 U.S. bank-reported liabilities 42,128 65,922 49,059 10,244 1,698 14,792 22,325 9,763 30 U.S. nonbank-reported liabilities 917 -2,383 -1,318 -2,337 -64 1,311 -228 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,946 7,062 8,731 2,924 3,139 995 1,673 1,490 32 Foreign purchases of other U.S. securities, net 7,171 6,396 8,612 3,003 2,614 1,861 1,134 1,547 33 Foreign direct investments in the United States, net3 23,148 14,865 11,299 2,305 3,327 3,322 2,345 1,862 34 Allocation of SDRs 1,093 0 0 0 0 0 0 0 35 Discrepancy 22,275 32,916 9,331 11,420 -1,833 1,491 -1,748 13,532 -579 439 -2,518 2,657 -172 37 Statistical discrepancy in recorded data before seasonal adjustment 22,275 32,916 9,331 11,999 -2,272 4,009 -4,405 13,704 MEMO Changes in official assets 38 U.S. official reserve assets (increase, -) -5,175 -4,965 -1,196 -787 16 529 -953 -657 39 Foreign official assets in the United States (increase, +) 5,303 2,936 5,140 281 1,305 -2,840 6,394 -3,044 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 13,581 7,291 -8,639 -1,466 -3,482 -2,051 -1,640 -2,525 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 675 593 205 42 30 49 84 27 1. Seasonal factors are no longer calculated for lines 6, 10. 12-16, 18-20, 22-34, 4. Primarily associated with military sales contracts and other transactions and 38-41. arranged with or through foreign official agencies. 2. Data are on an international accounts (IA) basis. Differs from the Census 5. Consists of investments in U.S. corporate stocks and in debt securities of basis data, shown in table 3.11, for reasons of coverage and timing; military private corporations and state and local governments. exports are excluded from merchandise data and are included in line 6. 3. Includes reinvested earnings. 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 Nov. Dec. Jan. Feb. Mar. Apr. May. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 233,677 212,193 200,486 17,063 17,298 18,326 17,212 17,727 17,521 17,950 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 261,305 243,952 258,048 23,115 22,976 26,586 26,147 26,771 28,368 25,569 3 Trade balance -27,628 -31,759 -57,562 -6,052 -5,678 -8,260 -8,935 -9,044 -10,846 -7,619 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 Dec. Jan. Feb. Mar. Apr. May June 1 Deposits 411 505 328 190 251 246 222 345 295 238 Assets held in custody 2 U.S. Treasury securities1 102,417 104,680 112,544 117,670 117,076 119,499 116,768 117,808 114,562 117,143 3 Earmarked gold2 14,965 14,804 14,716 14,414 14,347 14,291 14,278 14,278 14,268 14,266 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 • July 1984 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 1984 Oct. Nov. Dec. Jan/ Feb.' Mar. Apr.'' All foreign countries 1 Total, all currencies 401,135 462,847 469,712 459,327' 463,830' 476,146' 454,759 462,561 480,627 474,296 2 Claims on United States 28,460 63,743 91,805 102,753' 109,714' 115,065' 111,273 112,765 121,813 120,827 3 Parent bank 20,202 43,267 61,666 69,911' 75,724' 81,113' 76,734 79,416 86,364 85,153 4 Other 8,258 20,476 30,139 32,842 33,990 33,952 34,539 33,349 35,449 35,674 5 Claims on foreigners 354,960 378,954 358,493 338,014' 335,666' 342,271' 324,498 329,920 338,726 333,387 6 Other branches of parent bank 77,019 87,821 91,168 87,551' 89,456' 92,717' 86,928 85,748 90,703 92,898 7 Banks 146,448 150,763 133,752 117,636' 114,507' 117,581' 106,880 110,060 114,200 107,278 8 Public borrowers 28,033 28,197 24,131 25,113' 24,282' 24,445' 24,062 24,589 24,775 24,671 9 Nonbank foreigners 103,460 112,173 109,442 107,714' 107,421' 107,528' 106,628 109,523 109,048 108,540 10 Other assets 17,715 20,150 19,414 18,56(K 18,450' 18,810' 18,988 19,876 20,088 20,082 11 Total payable in U.S. dollars 291,798 350,735 361,982 351,916' 358,567' 370,935' 349,099 349,998 364,567 358,738 12 Claims on United States 27,191 62,142 90,085 100,194' 107,218' 112,954' 109,170 110,520 119,411 118,348 13 Parent bank 19,896 42,721 61,010 68,382' 74,202' 80,018' 75,587 78,187 85,052 83,732 14 Other 7,295 19,421 29,075 31,812 33,016 32,936 33,583 32,333 34,359 34,616 15 Claims on foreigners 255,391 276,937 259,871 241,387' 240,916' 247,309' 229,364 229,016 235,215 230,011 16 Other branches of parent bank 58,541 69,398 73,537 69,332' 71,460' 75,207' 69,064 66,790 70,940 70,152 17 Banks 117,342 122,110 106,447 92,053' 90,155' 93,257' 82,551 84,230 87,764 82,922 18 Public borrowers 23,491 22,877 18,413 18,696' 17,778' 17,881' 17,762 17,9% 18,104 17,831 19 Nonbank foreigners 56,017 62,552 61,474 61,306' 61,523' 60,964' 59,987 60,000 58,407 59,106 20 Other assets 9,216 11,656 12,026 10,335' 10,433' 10,672' 10,565 10,462 9,941 10,379 United Kingdom 21 Total, all currencies 144,717 157,229 161,067 156,803 155,964 1.58,732 155,096 157,972 161,007 161,029 22 Claims on United States 7,509 11,823 27,354 30,853 32,352 34,433 35,632 36,646 38,072 38,418 23 Parent bank 5,275 7,885 23,017 25,507 26,872 29,111 29,757 30,875 32,201 32,855 24 Other 2,234 3,938 4,337 5,346 5,480 5,322 5,875 5,771 5,871 5,563 25 Claims on foreigners 131,142 138,888 127,734 120,660 118,275 1119,280 114,287 116,055 118,200 117,643 26 Other branches of parent bank 34,760 41,367 37,000 36,556 35,642 36,565 34,842 33,296 34,617 38,627 27 Banks 58,741 56,315 50,767 43,888 42,683 43,352 40,119 42,300 43,804 39,739 28 Public borrowers 6,688 7,490 6,240 6,280 6,307 5,898 6,063 6,213 6,076 5,990 29 Nonbank foreigners 30,953 33,716 33,727 33,936 33,643 33,465 33,263 34,246 33,703 33,287 30 Other assets 6,066 6,518 5,979 5,290 5,337 5,019 5,177 5,271 4,735 4,968 31 Total payable in U.S. dollars 99,699 115,188 123,740 121,817 121,744 1126,012 121,195 121,944 124,501 123,033 32 Claims on United States 7,116 11,246 26,761 30,095 31,671 33,756 34,915 35,934 37,282 37,588 33 Parent bank 5,229 7,721 22,756 25,084 26,537 28,756 29,412 30,515 31,789 32,453 34 Other 1,887 3,525 4,005 5,011 5,134 5,000 5,503 5,419 5,493 5,135 35 Claims on foreigners 89,723 99,850 92,228 88,253 86,614 88,917 83,161 83,067 84,599 82,638 36 Other branches of parent bank 28,268 35,439 31,648 31,414 30,371 31,838 29,741 28,103 28,723 29,299 37 Banks 42,073 40,703 36,717 31,796 31,158 32,188 28,749 30,158 31,613 29,085 38 Public borrowers 4,911 5,595 4,329 4,346 4,377 4,194 4,356 4,414 4,390 4,304 39 Nonbank foreigners 14,471 18,113 19,534 20,697 20,708 20,697 20,315 20,392 19,873 19,950 40 Other assets 2,860 4,092 4,751 3,469 3,459 3,339 3,119 2,943 2,620 2,807 Bahamas and Caymans 41 Total, all currencies 123,837 149,108 145,156 141,557' 147,457' 151,532' 141,573 140,198 149,165 144,505 42 Claims on United States 17,751 46,546 59,403 66,49^ 71,563' 74,832' 70,739 70,706 77,807 75,446 43 Parent bank 12,631 31,643 34,653 40,351' 44,614' 47,807' 43,454 44,474 50,146 47,569 44 Other 5,120 14,903 24,750 26,148 26,949 27,025 27,285 26,232 27,661 27,877 45 Claims on foreigners 101,926 98,057 81,450 71,268 71,995 72,788 66,916 65,609 67,422 65,152 46 Other branches of parent bank 13,342 12,951 18,720 15,817 17,993 17,340 15,989 14,657 15,265 14,811 47 Banks 54,861 55,151 42,699 35,964 35,353 36,767 32,451 32,525 34,295 32,231 48 Public borrowers 12,577 10,010 6,413 6,643 5,890 6,084 5,992 5,956 6,028 5,983 49 Nonbank foreigners 21,146 19,945 13,618 12,844 12,759 12,597 12,484 12,471 11,834 12,127 50 Other assets 4,160 4,505 4,303 3,790 3,899 3,912' 3,918 3,883 3,936 3,907 51 Total payable in U.S. dollars 117,654 143,743 139,605 134,930' 141,041' 145,086' 135,161 133,826 142,653 138,105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A53 3.14 Continued 1983 1984 Oct. Nov. Dec. Jan. Feb. Mar. Apr .P All foreign countries 52 Total, all currencies 401,135 462,847 469,712 459,327' 463,830' 476,146' 454,759' 462,561' 480,627 474,296 51 To United States 91,079 137,767 179,015 185,797' 184,402' 187,552' 179,536' 182,575 187,558 183,907 54 Parent bank 39,286 56,344 75,621 85,274' 79,774' 80,530' 77,126' 79,205 77,483 75,487 55 Other banks in United States 14,473 19,197 33,405 27,036 26,202 29,107 26,660 25,644' 28,805 26,810 56 Nonbanks 37,275 62,226 69,989 73,487 78,426 77,915 75,750 77,726' 81,270 81,610 57 To foreigners 295,411 305,630 270,853 254,866' 260,495' 269,275' 256,284' 260,551' 273,029 270,223 58 Other branches of parent bank 75,773 86,396 90,191 84,004 86,792 89,047 82,126 81,834 87,222 90,912 59 Banks 132,116 124,906 96,860 84,542' 88,037' 92,802' 86,566' 89,084' 95,690 90,180 60 Official institutions 32,473 25,997 19,614 19,403 18,377 18,824 19,517 20,499 18,250 17,882 61 Nonbank foreigners 55,049 68,331 64,188 66,917' 67,289' 68,602' 68,075' 69,134' 71,867 71,249 62 Other liabilities 14,690 19,450 19,844 18,664' 18,933' 19,3^ 18,939' 19,435' 20,040 20,166 63 Total payable in U.S. dollars 303,281 364,447 379,270 370,369' 374,789' 387,722' 365,804' 367,442' 381,977 374,800 64 To United States 88,157 134,700 175,528 181,891' 180,406' 183,837' 175,1W 178,260 183,262 179,594 65 Parent bank 37,528 54,492 73,295 82,907' 77,327' 78,328' 74,774' 76,611 74,892 73,061 66 Other banks in United States 14,203 18,883 33,040 26,480 25,711 28,573 26,166 25,077' 28,219 26,223 67 Nonbanks 36,426 61,325 69,193 72,504 77,368 76,936 74,776 76,572' 80,151 80,310 68 To foreigners 206,883 217,602 192,510 179,127' 184,438' 194,038' 181,074' 180,071' 189,490 185,102 69 Other branches of parent bank 58,172 69,299 72,921 66,502 69,457 72,002 65,028 63,480 68,557 69,028 70 Banks 87,497 79,594 57,463 48,273' 52,086' 57,015' 50,606' 50,683' 56,202 50,884 71 Official institutions 24,697 20,288 15,055 14,630 13,453 13,852 14,673 15,835 13,161 13,347 72 Nonbank foreigners 36,517 48,421 47,071 49,722' 49,442' 51,169' 50,767' 50,073' 51,570 51,843 73 Other liabilities 8,241 12,145 11,232 9,351' 9,945' 9,847' 9,014' 9,111' 9,225 10,104 United Kingdom 74 Total, all currencies 144,717 157,229 161,067 156,803 155,964 158,732 155,096' 157,972' 161,007 161,029 75 To United States 21,785 38,022 53,954 60,903 57,095 55,799 55,618' 56,55C 56,344 56,461 76 Parent bank 4,225 5,444 13,091 21,385 17,312 14,021 17,075' 18,307' 15,850 16,246 77 Other banks in United States 5,716 7,502 12,205 10,751 10,176 11,328 10,640 10,570 11,556 10,542 78 Nonbanks 11,844 25,076 28,658 28,767 29,607 30,450 27,903 27,673 28,938 29,673 79 To foreigners 117,438 112,255 99,567 88,727 91,714 95,847 92,268 93,734 %,993 97,056 80 Other branches of parent bank 15,384 16,545 18,361 18,288 18,841 19,038 18,526 17,741 21,477 21,914 81 Banks 56,262 51,336 44,020 35,847 38,888 41,624 38,812 39,548 42,073 40,765 82 Official institutions 21,412 16,517 11,504 10,611 10,071 10,151 10,530 11,531 8,833 9,403 83 Nonbank foreigners 24,380 27,857 25,682 23,981 23,914 25,034 24,400 24,914 24,610 24,974 84 Other liabilities 5,494 6,952 7,546 7,173 7,155 7,086 7,210 7,688 7,670 7,512 85 Total payable in U.S. dollars 103,440 120,277 130,261 128,600 127,234 131,167 126,987' 127,622' 130,985 128,228 86 To United States 21,080 37,332 53,029 59,824 55,907 54,691 54,535' 55,105' 55,147 55,136 87 Parent bank 4,078 5,350 12,814 21,145 17,094 13,839 16,838' 17,90c 15,606 16,062 88 Other banks in United States 5,626 7,249 12,026 10,523 9,880 11,044 10,406 10,247 11,320 10,292 89 Nonbanks 11,376 24,733 28,189 28,156 28,933 29,808 27,291 26,958 28,221 28,782 90 To foreigners 79,636 79,034 73,477 65,347 68,011 73,279 69,557 69,438 72,776 69,672 91 Other branches of parent bank 10,474 12,048 14,300 14,542 15,044 15,403 14,758 13,956 17,559 14,729 92 Banks 35,388 32,298 28,810 23,136 26,343 29,320 26,386 26,229 28,833 27,2% 93 Official institutions 17,024 13,612 9,668 8,742 8,029 8,279 8,594 9,777 6,910 7,650 94 Nonbank foreigners 16,750 21,076 20,699 18,927 18,595 20,277 19,819 19,476 19,474 19,997 95 Other liabilities 2,724 3,911 3,755 3,429 3,316 3,197 2,895 3,079 3,062 3,420 Bahamas and Caymans 96 Total, all currencies 123,837 149,108 145,156 141,557' 147,457' 151,532' 141,57y 140,198 149,165 144,505 97 To United States 59,666 85,759 104,425 104,3%' 106,833' 110,831' 104,176' 104,552 109,981 106,672 98 Parent bank 28,181 39,451 47,081 48,481' 46,876' 50,256' 44,884' 44,186 45,398 43,211 99 Other banks in United States 7,379 10,474 18,466 14,322 14,117 15,711 14,401 13,544' 15,636 14,867 100 Nonbanks 24,106 35,834 38,878 41,593 45,840 44,864 44,891 46,822' 48,947 48,594 101 To foreigners 61,218 60,012 38,274 34,782 38,164 38,362 35,157 33,409 36,830 35,502 102 Other branches of parent bank 17,040 20,641 15,796 12,634 15,521 13,376 12,253 11,790 11,980 12,858 103 Banks 29,895 23,202 10,166 9,059 9,618 11,869 9,883 9,351 11,405 9,859 104 Official institutions 4,361 3,498 1,967 1,976 1,624 1,916 2,309 1,870 2,395 1,869 105 Nonbank foreigners 9,922 12,671 10,345 11,113 11,401 11,201 10,712 10,398 11,050 10,916 106 Other liabilities 2,953 3,337 2,457 2,379 2,460 2,339 2,240 2,237 2,354 2,331 107 Total payable in U.S. dollars 119,657 145,284 141,908 137,760' 143,804' 147,727' 137,709' 136,517' 145,129 140,264 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • July 1984 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1983 1984 IItteemm 11998811 11998822 Nov. Dec. Jan. Feb. Mar/ Apr. May? 1 Total1 169,735 172,718 173,860 177,859 176,239 176,867 174,952 175,348 171,252 By type 2 Liabilities reported by banks in the United States2 26,737 24,989 22,816 25,422 22,768 23,169 23,373 23,834 23,087 3 U.S. Treasury bills and certificates3 52,389 46,658 52,558 54,341 55,327 56,084 53,681 53,155 51,035 U.S. Treasury bonds and notes 4 Marketable 53,186 67,733 68,942 68,541 69,080 69,144 69,628 70,249 69,229 5 Nonmarketable4 11,791 8,750 7,250 7,250 7,250 6,600 6,600 6,600 6,600 6 U.S. securities other than U.S. Treasury securities5 25,632 24,588 22,294 22,305 21,814 21,870 21,670 21,510 21,301 By area I Western Europe1 65,699 61,298 65,648 67,669 66,208 67,925 67,738 69,935 69,307 8 Canada 2,403 2,070 2,665 2,438 2,511 2,329 1,944 1,557 1,261 9 Latin America and Caribbean 6,953 6,057 6,468 6,217 6,443 7,605 6,460 7,468 6,483 10 Asia 91,607 96,034 91,457 92,488 92,181 90,571 90,632 88,540 86,392 II Africa 1,829 1,350 801 958 1,051 1,067 1,038 941 1,179 12 Other countries6 1,244 5,909 6,821 8,089 7,845 7,370 7,140 6,907 6,630 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.P 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 customers' 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 Nov. Dec. Jan. Feb. Mar/ Apr. May.? 1 AU foreigners 205,297 243,889 307,056 351,382 369,226 358,486 368,750 377,173 380,149 393,026 2 Banks' own liabilities 124,791 163,817 227,089 262,226 278,644 264,478 271,707 284,926 286,960 300,605 3 Demand deposits 23,462 19,631 15,889 17,198 17,594 16,100 16,639 17,466 17,182 17,867 4 Time deposits' 15,076 29,039 68,035 84,735 90,098 87,691 91,157 96,462 96,072 102,640 5 Other2 17,583 17,647 23,946 22,863 26,100 23,287 23,989 24,485 24,789 23,692 6 Own foreign offices3 68,670 97,500 119,219 137,430 144,851 137,401 139,922 146,513 148,917 156,405 7 Banks' custody liabilities4 80,506 80,072 79,967 89,156 90,582 94,007 97,043 92,247 93,189 92,422 8 U.S. Treasury bills and certificates5 57,595 55,315 55,628 66,746 68,669 71,083 74,277 69,666 69,878 68,502 9 Other negotiable and readily transferable instruments6 20,079 18,788 20,636 17,721 17,529 18,063 17,864 18,075 18,703 18,794 10 Other 2,832 5,970 3,702 4,690 4,385 4,862 4,903 4,506 4,608 5,125 11 Nonmonetary international and regional organizations7 2,344 2,721 4,922 6,363 5,957 4,759 6,831 6,243 6,356 5,329 12 Banks' own liabilities 444 638 1,909 4,939 4,632 2,867 2,317 4,047 3,528 2,242 13 Demand deposits 146 262 106 437 297 271 347 414 194 255 14 Time deposits' 85 58 1,664 4,079 3,885 2,235 1,611 2,656 2,468 1,638 15 Other2 212 318 139 423 449 361 360 977 866 350 16 Banks' custody liabilities4 1,900 2,083 3,013 1,424 1,325 1,892 4,514 2,1% 2,827 3,087 17 U.S. Treasury bills and certificates 254 541 1,621 484 463 1,045 3,416 1,224 1,759 2,057 18 Other negotiable and readily transferable instruments6 1,646 1,542 1,392 939 862 847 1,098 971 1,068 1,030 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 86,624 79,126 71,647 75,374 79,764 78,095 79,253 77,053 76,990 74,122 21 Banks' own liabilities 17,826 17,109 16,640 16,673 19,315 16,488 17,512 17,105 17,532 16,728 22 Demand deposits 3,771 2,564 1,899 2,023 1,837 1,753 1,663 1,955 1,786 1,761 23 Time deposits' 3,612 4,230 5,528 6,723 7,294 7,286 7,638 6,698 7,465 7,153 24 Other2 10,443 10,315 9,212 7,926 10,184 7,449 8,211 8,452 8,282 7,815 25 Banks' custody liabilities4 68,798 62,018 55,008 58,701 60,448 61,607 61,741 59,948 59,457 57,394 26 U.S. Treasury bills and certificates5 56,243 52,389 46,658 52,558 54,341 55,327 56,084 53,681 53,155 51,035 27 Other negotiable and readily transferable instruments6 12,501 9,581 8,321 6,115 6,082 6,257 5,623 6,249 6,287 6,307 28 Other 54 47 28 28 25 23 34 19 15 52 29 Banks9 96,415 136,008 185,881 214,010 226,485 217,907 222,844 233,424 234,727 248,679 30 Banks' own liabilities 90,456 124,312 169,449 192,572 204,945 195,330 200,325 211,040 212,245 225,542 31 Unaffiliated foreign banks 21,786 26,812 50,230 55,142 60,094 57,929 60,403 64,527 63,329 69,137 32 Demand deposits 14,188 11,614 8,675 8,770 8,756 8,151 8,394 8,328 8,793 9,525 33 Time deposits' 1,703 8,720 28,386 32,678 36,734 35,036 37,475 41,905 39,597 44,775 34 Other2 5,895 6,477 13,169 13,695 14,604 14,743 14,534 14,294 14,938 14,837 35 Own foreign offices3 68,670 97,500 119,219 137,430 144,851 137,401 139,922 146,513 148,917 156,405 36 Banks' custody liabilities4 5,959 11,696 16,432 21,438 21,540 22,576 22,519 22,384 22,482 23,137 37 U.S. Treasury bills and certificates 623 1,685 5,809 9,967 10,178 10,776 10,756 10,760 10,795 11,168 38 Other negotiable and readily transferable instruments6 2,748 4,400 7,857 7,251 7,485 7,416 7,378 7,447 7,594 7,524 39 Other 2,588 5,611 2,766 4,221 3,877 4,384 4,385 4,177 4,092 4,445 40 Other foreigners 19,914 26,035 44,606 55,635 57,021 57,725 59,822 60,454 62,076 64,896 41 Banks' own liabilities 16,065 21,759 39,092 48,042 49,751 49,793 51,552 52,734 53,654 56,092 42 Demand deposits 5,356 5,191 5,209 5,968 6,703 5,925 6,234 6,770 6,409 6,327 43 Time deposits 9,676 16,030 32,457 41,255 42,185 43,134 44,434 45,203 46,542 49,074 44 Other2 1,033 537 1,426 819 863 734 884 761 703 691 45 Banks' custody liabilities4 3,849 4,276 5,514 7,593 7,269 7,932 8,270 7,719 8,423 8,804 46 U.S. Treasury bills and certificates 474 699 1,540 3,737 3,686 3,935 4,021 4,001 4,168 4,243 47 Other negotiable and readily transferable instruments6 3,185 3,265 3,065 3,415 3,100 3,542 3,764 3,408 3,755 3,933 48 Other 190 312 908 441 483 455 484 311 501 628 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,745 10,747 14,307 10,385 10,407 10,307 9,416 9,688 10,128 10,625 1. Excludes negotiable time certificates of deposit, which are included in 6. Principally bankers acceptances, commercial paper, and negotiable time "Other negotiable and readily transferable instruments." certificates of deposit. 2. Includes borrowing under repurchase agreements. 7. Principally the International Bank for Reconstruction and Development, and 3. U.S. banks: includes amounts due to own foreign branches and foreign the Inter-American and Asian Development Banks. subsidiaries consolidated in "Consolidated Report of Condition" filed with bank 8. Foreign central banks and foreign central governments, and the Bank for regulatory agencies. Agencies, branches, and majority-owned subsidiaries of International Settlements. foreign banks: principally amounts due to head office or parent foreign bank, and 9. Excludes central banks, which are included in "Official institutions." foreign branches, agencies or wholly owned subsidiaries of head office or parent • Liabilities and claims of banks in the United States were increased, foreign bank. beginning in December 1981, by the shift from foreign branches to international 4. Financial claims on residents of the United States, other than long-term banking facilities in the United States of liabilities to, and claims on, foreign securities, held by or through reporting banks. residents. 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • July 1984 3.17 Continued 1983 1984 AArreeaa aanndd ccoouunnttrryy 11998800 11998811AA 11998822 Nov. Dec. Jan. Feb. Mar. Apr. May.? 1 Total 205,297 243,889 307,056 351,382 369,226 358,486 368,750 377,173'' 380,149 393,026 2 Foreign countries 202,953 241,168 302,134 345,019 363,269 353,726 361,918 370,931' 373,793 387,697 3 Europe 90,897 91,275 117,756 130,671 138,006 134,887 140,026 142,406' 148,066 150,784 4 Austria 523 596 519 641 585 755 756 861 867 869 5 Belgium-Luxembourg 4,019 4,117 2,517 2,470 2,709 2,972 3,218 3,367 3,587 4,533 6 Denmark 497 333 509 538 466 372 355 285 307 378 7 Finland 455 296 748 375 531 298 398 287 485 405 8 France 12,125 8,486 8,171 8,083 9,441 8,122 10,098 10,728 10,737 12,080 9 Germany 9,973 7,645 5,351 4,337 3,599 3,823 4,582 4,878' 5,280 3,987 10 Greece 670 463 537 544 520 513 513 503 528 594 11 Italy 7,572 7,267 5,626 7,824 8,459 7,622 7,648 7,395 7,809 8,272 12 Netherlands 2,441 2,823 3,362 3,701 4,290 4,008 4,210 4,444 4,960 4,9% 13 Norway 1,344 1,457 1,567 1,531 1,673 1,481 1,452 1,285 1,847 1,536 14 Portugal 374 354 388 306 373 377 352 403 414 399 15 Spain 1,500 916 1,405 1,534 1,603 1,645 1,664 1,749 1,706 1,663 16 Sweden 1,737 1,545 1,390 1,652 1,799 1,896 1,752 1,838 1,673 1,962 17 Switzerland 16,689 18,716 29,066 30,623 32,117 31,956 32,237 32,237' 32,765 32,778 18 Turkey 242 518 296 319 467 334 400 318 335 444 19 United Kingdom 22,680 28,286 48,172 58,437 60,658 61,794 64,411 64,971' 68,158 68,487 20 Yugoslavia 681 375 499 552 562 505 477 479 448 511 21 Other Western Europe1 6,939 6,541 7,006 6,660 7,493 5,872 4,965 5,738' 5,584 6,262 22 U.S.S.R 68 49 50 27 65 62 74 177 61 53 23 Other Eastern Europe2 370 493 576 518 596 482 464 464' 510 574 24 Canada 10,031 10,250 12,232 16,369 16,026 16,270 17,679 17,182 16,707 17,450 25 Latin America and Caribbean 53,170 85,223 114,163 134,139 140,033 135,671 138,399 143,255' 143,863 152,142 26 Argentina 2,132 2,445 3,578 4,377 4,011 4,303 4,536 4,365 4,616 4.529 27 Bahamas 16,381 34,856 44,744 53,703 55,877 52,314 52,850 58,141' 56,930 62,764 28 Bermuda 670 765 1,572 2,582 2,328 2,745 3,165 2,886 3,097 3,308 29 Brazil 1,216 1,568 2,014 4,150 3,158 2,997 3,473 3,723' 3,793 3,605 30 British West Indies 12,766 17,794 26,381 30,624 34,431 32,531 32,456 32,677' 32,938 33,880 31 Chile 460 664 1,626 1,783 1,842 1,811 1,935 1,876 1,972 1,894 32 Colombia 3,077 2,993 2,594 1,645 1,689 1,584 1,840 11,,666699'' 11,,881144 1,760 33 Cuba 6 9 9 10 8 9 13 88 88 10 34 Ecuador 371 434 455 1,003 1,047 828 826 825 970 882 35 Guatemala 367 479 670 766 788 800 812 815 850 837 36 Jamaica 97 87 126 234 109 113 131 132 131 131 37 Mexico 4,547 7,235 8,377 9,463 10,389 10,994 10,693 10,699 11,189 11,878 38 Netherlands Antilles 413 3,182 3,597 3,941 3,879 3,773 4,503 4,901 4,666 4,397 39 Panama 4,718 4,857 4,805 5,946 5,924 5,586 5,545 5,498 5,482 6,270 40 Peru 403 694 1,147 1,090 1,166 1,130 1,146 1,157 1,179 1,246 41 Uruguay 254 367 759 1,173 1,232 1,278 1,321 1,418 1,330 1,369 42 Venezuela 3,170 4,245 8,417 8,024 8,603 9,313 9,442 8,566 9,076 9,432 43 Other Latin America and Caribbean 2,123 2,548 3,291 3,626 3,551 3,562 3,712 3,899 3,822 3,949 44 Asia 4422,,442200 49,822 48,716 54,278 58,351 5566,,000022 5555,,229933 5577,,666622 5544,,995522 5577,,225566 China 45 Mainland 49 158 203 183 249 249 168 272 302 391 46 Taiwan 1,662 2,082 2,761 4,063 3,997 4,270 4,291 4,193 4,388 4,361 47 Hong Kong 2,548 3,950 4,465 6,971 6,610 6,1% 5,884 6,387 5,447 5,917 48 India 416 385 433 725 464 670 749 687 651 646 49 Indonesia 730 640 857 661 997 1,093 859 753 784 897 50 Israel 883 592 606 808 1,722 786 752 832' 708 760 51 Japan 16,281 20,750 16,078 17,138 18,079 17,069 17,615 19,216 18,862 20,563 52 Korea 1,528 2,013 1,692 1,591 1,648 1,614 1,542 1,748 1,409 1,332 53 Philippines 919 874 770 1,012 1,234 1,235 1,280 1,264 1,015 1,130 54 Thailand 464 534 629 569 716 776 622 714 637 729 55 Middle-East oil-exporting countries3 14,453 12,992 13,433 12,650 12,960 12,516 11,587 12,197' 12,267 11,618 56 Other Asia 2,487 4,853 6,789 7,907 9,676 9,528 9,943 9,398 8,482 8,912 57 Africa 5,187 3,180 3,124 2,694 2,800 2,917 3,070 3,111 3,182 3,140 58 Egypt 485 360 432 589 645 572 568 561 649 698 59 Morocco 33 32 81 96 84 109 138 122 127 132 60 South Africa 288 420 292 389 449 486 502 538 264 329 61 Zaire 57 26 23 32 87 61 66 77 119 124 62 Oil-exporting countries4 3,540 1,395 1,280 679 620 869 839 893 1,046 895 63 Other Africa 783 946 1,016 909 917 821 957 920 978 %2 64 Other countries 1,247 1,419 6,143 6,868 8,053 7,979 7,451 7,315 7,023 6,925 65 Australia 950 1,223 5,904 6,666 7,857 7,742 7,197 7,095 6,803 6,685 66 All other 297 196 239 202 196 237 255 220 220 240 67 Nonmonetary international and regional organizations 2,344 2,721 4,922 6,363 5,957 4,759 6,831 6,243 6,356 5,329 68 International 1,157 1,661 4,049 5,598 5,273 4,174 6,189 5,426 5,641 4,754 69 Latin American regional 890 710 517 415 419 433 457 451 419 428 70 Other regional5 296 350 357 350 265 152 186 366 296 146 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 11998811 •• 11998822 Nov. Dec. Jan. Feb. Mar. Apr. May.P 1 172,592 251,589 355,705 375,118 387,710 372,146 376,875 385,029' 387,485 397,965 2 Foreign countries 172,514 251,533 355,636 375,048 387,547 372,081 376,711 384,879' 387,411 397,862 3 32,108 49,262 85,584 90,243 90,743 90,378 91,293 91,836' 96,206 97,639 4 236 121 229 395 401 354 414 449 695 454 5 Belgium-Luxembourg 1,621 2,849 5,138 5,548 5,639 5,942 6,182 5,970 6,199 6,452 6 127 187 554 1,272 1,275 1,296 1,244 1,283 1,197 1,118 7 460 546 990 822 1,044 945 952 931 1,021 1,041 8 2,958 4,127 7,251 7,942 8,761 7,984 8,314 8,388 8,734 9,012 9 Germany 948 940 1,876 1,256 1,294 1,058 1,047 1,098 1,502 1,110 10 256 333 452 412 476 508 549 694 830 940 11 Italy 3,364 5,240 7,560 8,459 9,013 7,869 7,904 8,161 8,286 7,840 1? 575 682 1,425 1,396 1,302 1,407 1,319 1,309' 2,329 1,787 13 Norway 227 384 572 590 690 652 645 638 705 719 14 Portugal 331 529 950 891 939 954 944 908 1,079 1,141 15 993 2,095 3,744 3,654 3,573 3,391 3,280 3,347 3,719 3,683 16 783 1,205 3,038 3,249 3,358 3,373 3,356 3,528 3,646 2,942 17 Switzerland 1,446 2,213 1,639 2,114 1,856 1,452 1,302 1,447 1,845 1,565 18 Turkey 145 424 560 693 812 795 879 958 1,019 1,004 19 United Kingdom 14,917 23,849 45,781 47,762 46,372 48,488 49,069 48,800' 49,316 52,877 20 Yugoslavia 853 1,225 1,430 1,582 1,673 1,718 1,702 1,706 1,694 1,651 21 Other Western Europe1 179 211 368 429 477 493 547 499 655 565 77 U.S.S.R 281 377 263 173 192 162 169 181 174 154 23 Other Eastern Europe2 1,410 1,725 1,762 1,603 1,598 1,537 1,475 1,54c 1,562 1,584 24 Canada 4,810 9,193 13,678 16,382 16,330 15,868 15,984 17,233' 17,065 17,873 ?5 Latin America and Caribbean 92,992 138,347 187,969 197,785 203,269 193,898 196,869 201,81c 201,371 209,169 76 Argentina 5,689 7,527 10,974 11,899 11,740 11,746 11,751 11,626 11,419 11,034 77 29,419 43,542 56,649 56,131 58,351 52,586 52,761 57,169' 56,764 61,966 78 218 346 603 620 566 644 409 532 772 852 79 Brazil 10,496 16,926 23,271 24,532 24,482 24,826 24,928 25,697' 25,928 25,721 30 British West Indies 15,663 21,981 29,101 32,251 34,921 31,171 33,175 33,157' 33,763 36,262 31 Chile 1,951 3,690 5,513 5,860 6,029 6,163 6,286 6,131 6,051 6,066 3? Colombia 1,752 2,018 3,211 3,734 3,745 3,695 3,536 3,667' 3,649 3,523 33 Cuba 3 3 3 0 0 0 0 0 4 0 34 1,190 1,531 2,062 2,262 2,307 2,367 2,350 2,334 2,335 2,320 35 Guatemala3 137 124 124 122 129 189 126 128 129 114 36 36 62 181 210 215 218 219 210 227 241 37 12,595 22,439 29,552 33,729 34,710 34,547 34,685 34,593' 34,578 35,140 38 Netherlands Antilles 821 1,076 839 1,186 1,154 971 1,043 1,245' 1,149 1,164 39 4,974 6,794 10,210 8,336 7,848 7,847 8,794 8,367 7,679 7,892 40 890 1,218 2,357 2,469 2,536 2,467 2,415 2,453 2,380 2,427 41 Uruguay 137 157 686 903 977 982 908 924 923 886 4? Venezuela 5,438 7,069 10,643 11,086 11,287 11,247 11,183 11,142' 11,107 11,001 43 Other Latin America and Caribbean 1,583 1,844 1,991 2,455 2,271 2,232 2,298 2,436 2,514 2,559 44 39,078 49,851 60,952 61,286 67,648 62,655 62,623 64,347' 63,015 63,532 China 45 195 107 214 249 292 420 337 364' 428 348 46 Taiwan 2,469 2,461 2,288 1,574 1,908 1,820 1,710 1,657' 1,654 1,574 47 Hong Kong 2,247 4,132 6,787 8,758 8,429 8,129 8,030 7,470 7,940 7,597 48 142 123 222 305 330 344 253 337 372 361 49 245 352 348 711 805 853 899 935 911 983 50 1,172 1,567 2,029 1,817 1,795 1,556 1,478 1,607 1,846 1,821 51 21,361 26,797 28,379 25,829 30,573 27,333 27,845 28,688' 26,182 27,152 S? 5,697 7,340 9,387 9,629 9,891 9,489 9,513 9,676 10,325 9,550 53 Philippines 989 1,819 2,625 2,427 2,099 2,408 2,357 2,371 2,359 2,382 54 876 565 643 867 1,021 1,021 1,035 999' 1,014 1,127 55 Middle East oil-exporting countries4 1,432 1,581 3,087 4,276 4,954 4,637 4,264 5,039' 5,097 5,181 56 Other Asia 2,252 3,009 4,943 4,845 5,549 4,646 4,902 5,203' 4,887 5,456 57 2,377 3,503 5,346 6,830 6,654 6,571 7,226 6,919 6,646 6,709 58 151 238 322 692 747 738 712 744 698 633 59 223 284 353 461 440 450 481 484 486 558 60 South Africa 370 1,011 2,012 2,892 2,634 2,684 2,928 2,989 2,908 2,974 61 94 112 57 37 33 29 16 13 26 28 67 Oil-exporting countries5 805 657 801 1,039 1,073 1,037 1,124 1,029 1,000 967 63 Other 734 1,201 1,802 1,709 1,727 1,631 1,964 1,661 1,527 1,550 64 Other countries 1,150 1,376 2,107 2,522 2,904 2,712 2,718 2,734 3,109 2,940 65 Australia 859 1,203 1,713 1,899 2,272 2,105 2,048 2,007 2,489 2,343 66 All other 290 172 394 624 632 607 670 727 620 597 67 Nonmonetary international and regional organizations6 78 56 68 70 164 64 116644 115500 7744 110033 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German "Other Western Europe." Democratic Republic, Hungary, Poland, and Romania. NOTE. Data for period before April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and • Liabilities and claims of banks in the United States were increased, United Arab Emirates (Trucial States). beginning in December 1981, by the shift from foreign branches to international banking facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • July 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 Nov. Dec. Jan. Feb. Mar.' Apr. May? 1 Total 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,555555555555557777777 333333399999996666666,,,,,,,000000011111115555555 444444422222221111111,,,,,,,666666655555553333333 444444422222221111111,,,,,,,222222211111114444444 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111177777772222222,,,,,,,555555599999992222222 222222255555551111111,,,,,,,555555588888889999999 333333355555555555555,,,,,,,777777700000005555555 375,118 333333388888887777777,,,,,,,777777711111110000000 372,146 376,875 333333388888885555555,,,,,,,000000022222229999999 387,485 397,965 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 22222220000000,,,,,,,888888888888882222222 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444422222222222222 56,026 55555557777777,,,,,,,222222255555555555555 58,115 57,346 55555557777777,,,,,,,777777733333331111111 58,043 57,844 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 66666665555555,,,,,,,000000088888884444444 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,222222299999993333333 137,520 111111144444444444444,,,,,,,000000011111116666666 138,377 140,881 111111144444446666666,,,,,,,444444466666667777777 146,122 155,749 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 55555550000000,,,,,,,111111166666668888888 77777774444444,,,,,,,777777700000004444444 111111122222221111111,,,,,,,333333377777777777777 118,619 111111122222222222222,,,,,,,777777777777779999999 115,211 116,872 111111111111119999999,,,,,,,444444499999996666666 121,193 122,869 66 DDeeppoossiittss 8888888,,,,,,,222222255555554444444 22222223333333,,,,,,,333333388888881111111 44444444444444,,,,,,,222222222222223333333 44,738 44444446666666,,,,,,,333333399999992222222 43,092 44,742 44444445555555,,,,,,,333333366666664444444 44,229 46,730 77 OOtthheerr 44444441111111,,,,,,,999999911111114444444 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 73,881 77777776666666,,,,,,,333333388888887777777 72,119 72,130 77777774444444,,,,,,,111111133333332222222 76,964 76,139 88 AAllll ootthheerr ffoorreeiiggnneerrss 33333336666666,,,,,,,444444455555559999999 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,666666611111114444444 62,952 66666663333333,,,,,,,666666666666661111111 60,442 61,776 66666661111111,,,,,,,333333333333335555555 62,127 61,503 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 22222226666666,,,,,,,111111100000006666666 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333333333333,,,,,,,999999944444443333333 33333336666666,,,,,,,111111188888885555555 1100 DDeeppoossiittss 888888888888885555555 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,666666666666660000000 11 Negotiable and readily transferable instruments3 11111115555555,,,,,,,555555577777774444444 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222225555555,,,,,,,111111100000004444444 22222225555555,,,,,,,999999999999992222222 12 Outstanding collections and other claims 9999999,,,,,,,666666644444448888888 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 6666666,,,,,,,555555533333333333333 13 MEMO: Customer liability on acceptances 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,333333322222224444444 33333336666666,,,,,,,999999988888884444444 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 24,468 40,369 42,358' 48,672' 44,994' 44,836' 46,979' 46,258 47,681 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 subsidianes 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 1984 Maturity; by borrower and area 1980 1981A 1982 June Sept. Mar. 1 Total 106,748 154,590 228,150 232,704 237,162 242,933 232,612 By borrower 2 Maturity of 1 year or less1 82,555 116,394 173,917 175,021 176,271 175,970 159,835 3 Foreign public borrowers .... 9,974 15,142 21,256 23,124 25,479 24,258 20,656 4 All other foreigners 72,581 101,252 152,661 151,897 150,792 151,712 139,179 5 Maturity of over 1 year1 24,193 38,197 54,233 57,683 60,891 66,963 72,777 6 Foreign public borrowers 10,152 15,589 23,137 26,455 28,231 32,482 35,825 7 All other foreigners 14,041 22,608 31,095 31,227 32,660 34,481 36,952 By area Maturity of 1 year or less1 8 Europe 18,715 28,130 50,500 52,208 53,332 55,550 53,167 9 Canada 2,723 4,662 7,642 7,110 6,642 6,200 6,566 10 Latin America and Caribbean 32,034 48,717 73,291 74,967 76,383 73,997 63,053 11 Asia 26,686 31,485 37,578 35,345 33,890 34,518 31,238 12 Africa 1,757 2,457 3,680 3,854 4,570 4,206 4,472 13 Allother2 640 943 1,226 1,536 1,454 1,499 1,340 Maturity of over 1 year1 14 Europe 5,118 8,100 11,636 12,289 12,338 13,300 13,068 15 Canada 1,448 1,808 1,931 1,861 1,760 1,857 2,035 16 Latin America and Caribbean 15,075 25,209 35,247 36,730 39,102 43,498 49,047 17 Asia 1,865 1,907 3,185 4,070 4,735 4,838 5,131 18 Africa 507 900 1,494 1,667 1,819 2,278 2,291 19 Allother2 179 272 740 1,066 1,136 1,191 1,206 1. Remaining time to maturity. • 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 -> 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 12.0 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 17.0 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 • July 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 25,663' 25,663' 23,450' 22,846' 24,762' 23,571 2 Payable in dollars 25,689 24,909 22,470' 22,470' 20,459' 19,922' 21,895' 20,484 3 Payable in foreign currencies 3,745 3,709 3,193 3,193 2,991' 2,924' 2,867 3,087 By type 4 Financial liabilities 11,330 12,157 11,001' 11,001' 10,996' 11,181' 10,946' 10,383 5 Payable in dollars 8,528 9,499 8,829' 8,829' 8,952' 9,120' 8,976' 8,504 6 Payable in foreign currencies 2,802 2,658 2,172 2,172 2,044' 2,061' 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 6,438' 6,438' 6,319' 6,337' 6,027' 5,715 13 Belgium-Luxembourg 479 471 557' 557' 459' 482' 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 71(K 629' 530 525 18 United Kingdom 3,923 3,565 3,075' 3,075' 3,097' 3,108' 2,992' 2,834 19 Canada 964 963 746 746 733 876' 788 770 20 Latin America and Caribbean 3,136 3,356 2,749' 2,749' 2,787' 2,623' 2,709' 2,541 21 Bahamas 964 1,279 904' 904' 857' 776' 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 1,025' 1,025' 1,053' 1,033' 1,023' 896 25 Mexico 99 102 121 121 149 151 185 215 26 Venezuela 81 98 114 114 121 124 117 124 27 723 976 1,039 1,039 1,124 1,319 1,388' 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 Type, and area or country 998800 11998811 11998822 Dec. Mar. June Sept. Dec. 1 Total 34,482 36,185 28,483' 28,483' 31,230' 31,505' 31,656 33,329 2 Payable in dollars 31,528 32,582 25,851' 25,851' 28,510' 28,849' 28,780 30,169 3 Payable in foreign currencies 2,955 3,603 2,632' 2,632' 2,720' 2,656' 2,877 3,160 By type 4 Financial claims 19,763 21,142 17,501' 17,501' 20,261' 20,896' 20,831 22,299 5 Deposits 14,166 15,081 12,965' 12,965' 15,61c 16,072' 15,987 17,318 6 Payable in dollars 13,381 14,456 12,534' 12,534' 15,130' 15,632' 15,542 16,821 7 Payable in foreign currencies 785 625 43C 43C 480' 439' 445 497 8 Other financial claims 5,597 6,061 4,536 4,536 4,651 4,824' 4,845 4,981 9 Payable in dollars 3,914 3,599 2,895 2,895 3,006 3,226' 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 4,868' 4,868' 6,229' 6,847' 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 230 224 178 178 127 216' 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 4,064' 4,064' 5,434' 6,058' 5,547 5,768 23 Canada 5,036 6,755 4,287 4,287 4,613 4,885' 4,958 5,759 24 Latin America and Caribbean 7,811 8,812 7,458' 7,458' 8,527' 8,089' 8,609 9,110 25 Bahamas 3,477 3,650 3,265' 3,265' 3,811' 3,291' 3,389 4,332 26 Bermuda 135 18 32 32 21 92' 62 96 27 Brazil 96 30 62 62 50 48 49 53 28 British West Indies 2,755 3,971 3,171' 3,171' 3,408' 3,447' 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 607 758 698 698 712 771' 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 5,544 5,405 3,777 . 3,777 3,594 3,410 3,349 3,604 37 Europe 233 234 150 150 140 144 131 142 38 Belgium-Luxembourg 1,129 776 473 473 489 499 486 455 39 France 599 561 356 356 424 364 381 346 40 Germany 318 299 347 347 309 242 282 332 41 Netherlands 354 431 339 339 227 303 270 295 42 Switzerland 929 985 808 808 754 739 734 802 43 United Kingdom 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 • July 1984 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1984 1983 1984 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 J M a a n y . - Nov. Dec. Jan. Feb. Mar. Apr. MayP U.S. corporate securities STOCKS 1 Foreign purchases 41,881 69,896 27,338 4,853 6,020 5,445 6,234 6,101 4,510 5,048 2 Foreign sales 37,981 64,466 26,904 4,794 5,745 5,798 5,823 5,599 4,189 5,494 3 Net purchases, or sales (-) 3,901 5,430 434 60 275 -353 411 502 321 -446 4 Foreign countries 3,816 5,332 474 59 283 -342 480 470 320 -454 5 Europe 2,530 3,999 243 -60 -278 -160 147 329 208 -281 6 France -143 -97 -34 -68 -64 -71 -97 -4 38 100 7 Germany 333 1,045 278 53 -51 95 116 151 -43 -40 8 Netherlands -63 -109 -29 24 13 0 1 32 -15 -47 9 Switzerland -579 1,325 57 -97 -208 -92 282 -3 90 -220 10 United Kingdom 3,117 1,818 -89 21 51 -87 -168 125 137 -96 11 Canada 222 1,151 719 -1 183 83 323 300 73 -61 12 Latin America and Caribbean 317 529 288 14 239 124 43 14 25 82 13 Middle East1 366 -807 -829 45 13 -361 -44 -197 -58 -168 14 Other Asia 247 394 58 63 122 -48 36 33 66 -28 15 Africa 2 42 8 1 2 5 10 -7 5 -4 16 Other countries 131 24 -13 -3 1 16 -34 -1 2 6 17 Nonmonetary international and regional organizations 85 98 -40 0 -7 -11 -70 32 1 8 BONDS2 18 Foreign purchases 21,639 23,976 9,622 2,039 1,661 1,836 2,113 2,20C 1,710 1,763 19 Foreign sales 20,188 23,076 9,012 1,304 1,493 1,775 1,864 2,074' 1,857 1,442 20 Net purchases, or sales (-) 1,451 900 610 735 168 62 248 126' -147 321 21 Foreign countries 1,479 885 558 715 160 72 161 18Y -214 355 22 Europe 2,082 904 224 458 -87 72 51 -15 30 85 23 France 305 -89 -12 -31 -4 -1 -5 -1 -5 0 24 Germany 2,110 286 221 53 -10 -38 -32 117 68 107 25 Netherlands 33 51 24 5 3 3 25 9 -12 -1 26 Switzerland 157 632 -43 15 78 12 5 -45 -22 8 27 United Kingdom -589 438 -126 390 -126 129 101 -58 -239 -59 28 Canada 24 123 -106 46 -22 1 -10 -23' -77 3 29 Latin America and Caribbean 159 100 192 -6 20 9 16 18' -8 157 30 Middle East1 -752 -1,159 -218 116 42 -26 30 30 -263 11 31 Other Asia -22 865 465 101 207 18 75 170 102 100 32 Africa -19 0 0 0 0 -1 0 0 1 0 33 Other countries 7 52 1 0 0 0 -2 3 1 0 34 Nonmonetary international and regional organizations -28 15 53 20 7 -11 87 -57 67 -34 Foreign securities 35 Stocks, net purchases, or sales (-) -1,341 -3,867 383 -31 -190 -125 318 144 -18 64 36 Foreign purchases 7,163 13,143 6,631 907 1,126 1,197 1,460 1,575 1,242 1,156 37 Foreign sales 8,504 17,010 6,248 939 1,317 1,323 1,142 1,431 1,260 1,092 38 Bonds, net purchases, or sales (-) -6,631 -3,694 -1,126 173 -689 125 -73 -148' -399 -631 39 Foreign purchases 27,167 35,669 20,913 3,114 3,072 3,273 3,902 4,760' 3,812 5,165 40 Foreign sales 33,798 39,363 22,039 2,940 3,761 3,148 3,975 4,907' 4,211 5,797 41 Net purchases, or sales (-), of stocks and bonds -7,972 -7,561 -743 142 -879 0 245 -4' -417 -567 42 Foreign countries -6,806 -7,116 -961 38 -719 -29 213 -89' -415 -642 43 Europe -2,584 -5,713 -2,743 -426 -448 -45 -404 -237' -537 -1,520 44 Canada -2,363 -1,582 -202 37 -64 -128 184 -108' -187 38 45 Latin America and Caribbean 336 1,120 1,079 135 17 114 188 49 126 602 46 Asia -1,822 -914 939 158 -81 33 255 220 187 243 47 Africa -9 141 -47 1 0 -5 -11 -10 -4 -16 48 Other countries -364 -166 12 133 -143 2 1 -3 0 12 49 Nonmonetary international and regional organizations -1,165 -445 219 105 -161 28 32 85 -2 74 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 Jan.- May Nov. Dec. Jan. Feb. Mar. Apr. May P Holdings (end of period)1 1 Estimated total2 85,220 88,940 89,509 88,940 89,666 90,275 89,725' 92,074 92,917 2 Foreign countries2 80,637 83,820 83,668 83,820 84,549 84,446 84,447' 85,472 85,290 3 Europe2 29,284 35,537 35,106 35,537 36,049 37,396 37,303' 37,864 37,876 4 Belgium-Luxembourg 447 16 2 16 33 50 57 91 61 5 Germany2 14,841 17,290 17,092 17,290 17,581 18,527 18,834' 19,201 19,507 6 Netherlands 2,754 3,129 3,048 3,129 3,113 3,052 3,023 3,117 2,979 7 Sweden 677 867 783 867 898 918 965 969 974 8 Switzerland2 1,540 1,118 1,064 1,118 1,167 1,206 1,256 1,241 979 9 United Kingdom 6,549 8,524 8,626 8,524 8,723 8,610 8,430 8,434 8,670 10 Other Western Europe 2,476 4,592 4,490 4,592 4,535 5,034 4,740' 4,809 4,707 11 Eastern Europe 0 0 0 0 0 0 0 0 -1 12 Canada 602 1,301 1,225 1,301 1,298 1,310 1,090 1,299 1,308 13 Latin America and Caribbean 1,076 863 914 863 1,426 840 563 572 962 14 Venezuela 188 64 64 64 64 64 64 65 65 15 Other Latin America and Caribbean 656 716 674 716 696 574 504 453 546 16 Netherlands Antilles 232 83 176 83 665 201 -6 53 351 17 Asia 49,543 46,000 46,301 46,000 45,664 44,797 45,386' 45,595 44,977 18 Japan 11,578 13,910 13,600 13,910 14,012 14,351 14,333 14,547 14,871 19 Africa 77 79 79 79 79 78 82 85 88 20 All other 55 40 43 40 33 25 22 58 79 21 Nonmonetary international and regional organizations 4,583 5,120 5,841 5,120 5,117 5,829 5,278' 6,602 7,627 22 International 4,186 4,404 5,030 4,404 4,467 5,139 4,614 5,936 6,946 23 Latin American regional 6 6 0 6 6 6 6 6 6 Transactions (net purchases, or sales ( -) during period) 24 Total2 14,972 3,720 3,977 -1,422 -576 726 610 -SSO' 2,348 843 25 Foreign countries2 16,072 3,183 1,470 -615 152 729 -103 I' 1,025 -182 26 Official institutions 14,550 806 680 -773 -401 539 64 476' 621 -1,021 27 Other foreign2 1,518 2,381 790 158 554 189 -168 -475' 404 840 28 Nonmonetary international and regional organizations -1,097 531 2,504 -808 -729 -3 712 -551' 1,322 1,024 MEMO: Oil-exporting countries 29 Middle East3 7,575 -5,424 -2,983 -968 -60 -515 -773 46 -678 -1,063 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 June 30, 1984 Rate on June 30, 1984 Rate on June 30, 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 4.5 June 1984 Switzerland 4.0 Mar. 1983 Brazil... 49.0 Mar. 1981 Italy 15.5 May 1984 United Kingdom2. Canada.. 12.36 June 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 • July 1984 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1983 1984 CCoouunnttrryy,, oorr ttyyppee 11998811 11998822 11998833 Dec. Jan. Feb. Mar. Apr. May June 1 Eurodollars 16.79 12.24 9.57 10.08 9.78 9.91 10.40 10.83 11.53 11.68 2 United Kingdom 13.86 12.21 10.06 9.34 9.40 9.35 8.90 8.84 9.32 9.43 3 Canada 18.84 14.38 9.48 9.83 9.84 9.85 10.40 10.75 11.52 11.86 4 Germany 12.05 8.81 5.73 6.43 6.07 5.91 5.82 5.81 6.08 6.11 5 Switzerland 9.15 5.04 4.11 4.29 3.65 3.47 3.60 3.61 3.83 4.15 6 Netherlands 11.52 8.26 5.58 6.20 6.01 5.95 6.09 6.04 6.05 6.09 7 France 15.28 14.61 12.44 12.16 12.22 12.36 12.53 12.46 12.16 12.23 8 Italy 19.98 19.99 18.95 17.75 17.75 17.40 17.28 17.38 16.80 16.75 9 Belgium 15.28 14.10 10.51 10.50 10.68 11.43 12.02 11.66 11.80 11.90 10 Japan 7.58 6.84 6.49 6.45 6.35 6.34 6.41 6.26 6.24 6.35 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 1984 CCoouunnttrryy//ccuurrrreennccyy 11998811 11998822 11998833 Jan. Feb. Mar. Apr. May June 1 Australia/dollar1 114.95 101.65 90.14 90.60 93.48 95.13 92.31 90.61 88.26 2 Austria/schilling 15.948 17.060 17.968 19.815 19.028 18.285 18.630 19.316 19.226 3 Belgium/franc 37.194 45.780 51.121 57.354 55.279 53.135 54.078 55.925 55.840 4 Brazil/cruzeiro 92.374 179.22 573.27 1022.81 1131.37 1266.64 1387.52 1497.64 1,643.81 5 Canada/dollar 1.1990 1.2344 1.2325 1.2484 1.2480 1.2697 1.2796 1.2944 1.3040 6 China, P.R./yuan 1.7031 1.8978 1.9809 2.0490 2.0628 2.0646 2.0929 2.1866 2.2178 7 Denmark/krone 7.1350 8.3443 9.1483 10.1793 9.8549 9.5175 9.7311 10.0618 10.050 8 Finland/markka 4.3128 4.8086 5.5636 5.9385 5.7892 5.6136 5.6434 5.8115 5.8182 9 France/franc 5.4396 6.5793 7.6203 8.5948 8.3051 8.0022 8.1411 8.4435 8.4181 10 Germany/deutsche mark 2.2631 2.428 2.5539 2.8110 2.6984 2.5973 2.6474 2.7484 2.7397 11 Greece/drachma n.a. 66.872 87.895 102.601 101.80 102.40 104.89 108.37 108.85 12 Hong Kong/dollar 5.5678 6.0697 7.2569 7.7968 7.7883 7.7942 7.8073 7.8159 7.8131 13 India/rupee 8.6807 9.4846 10.1040 10.7152 10.744 10.714 10.820 11.017 11.064 14 Ireland/pound1 161.32 142.05 124.81 110.20 114.21 117.88 115.67 111.75 111.67 15 Israel/shekel n.a. 24.407 55.865 116.728 130.21 146.40 168.76 191.56 215.06 16 Italy/lira 1138.60 1354.00 1519.30 1706.63 1666.39 1614.17 1638.48 1696.32 1,694.80 17 Japan/yen 220.63 249.06 237.55 233.80 233.60 225.27 225.20 230.48 233.57 18 Malaysia/ringgit 2.3048 2.3395 2.3204 2.3411 2.3363 2.2933 2.2904 2.3029 2.3109 19 Mexico/peso 24.547 72.990 155.01 166.33 168.49 172.93 179.07 198.35 196.54 20 Netherlands/guilder 2.4998 2.6719 2.8543 3.1602 3.0455 2.9326 2.9864 3.0926 3.0882 21 New Zealand/dollar1 86.848 75.101 66.790 64.860 65.810 66.714 65.834 64.892 64.205 22 Norway/krone 5.7430 6.4567 7.3012 7.8763 7.6937 7.5028 7.5992 7.8100 7.8162 23 Philippines/peso 7.8113 8.5324 11.0940 14-050 14.050 14.186 14.257 14.262 14.250 24 Portugal/escudo 61.739 80.101 111.610 136.29 135.01 131.70 134.46 139.85 141.83 25 Singapore/dollar 2.1053 2.1406 2.1136 2.1309 2.1279 2.0893 2.0853 2.1006 2.1122 26 South Africa/rand1 114.77 92.297 89.85 79.54 81.31 82.10 80.19 78.15 76.49 27 South Korea/won n.a. 731.93 776.04 800.33 799.06 794.51 796.41 801.54 802.20 28 Spain/peseta 92.396 110.09 143.500 159.832 154.20 149.68 150.26 154.03 154.75 29 Sri Lanka/rupee 18.967 20.756 23.510 25.181 25.270 25.177 25.133 25.161 25.176 30 Sweden/krona 5.0659 6.2838 7.6717 8.1782 7.9976 7.7323 7.8444 8.0782 8.0993 31 Switzerland/franc 1.9674 2.0327 2.1006 2.2380 2.2050 2.1490 2.1913 2.2680 2.2832 32 Taiwan/Dollar n.a. n.a. n.a. 40.202 40.236 40.078 39.784 39.716 39.843 33 Thailand/baht 21.731 23.014 22.991 23.006 23.000 23.004 23.010 23.010 23.010 34 United Kingdom/pound1 202.43 174.80 151.59 140.76 144.17 145.57 142.10 138.94 137.70 35 Venezuela/bolivar 4.2781 4.2981 10.6840 13.021 13.023 13.470 14.375 15.661 14.709 MEMO United States/dollar2 102.94 116.57 125.34 135.07 131.71 128.07 130.01 133.99 134.31 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

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

66 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. GEMMILL, 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

67 and Official Staff EMMETT J. RICE MARTHA R. SEGER LYLE E. GRAMLEY 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 GEORGE M. LOPEZ, Assistant Director *On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • July 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 MARTHA R. SEGER 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 BARRY F. SULLIVAN, 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

69 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

70 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. I. 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

71 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. STAFF STUDIES. Summaries Only Printed in the Securities Credit Transactions Handbook. $60.00 per year. 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 CATIONS. BANKING MARKETS, by Timothy J. Curry and John T. 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. Out of print. CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON COSTS, PRICES, AND RETAIL SALES, July 1983. 114 pp. 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A ALLOCATION, by Glenn Canner. June 1982. 8 pp. MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. 118. INTEREST RATES AND TERMS ON CONSTRUCTION REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT THE ANNU- LOANS AT COMMERCIAL BANKS, by David F. Seiders. AL DINNER OF THE JAPAN SOCIETY, June 1984. 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. Out of print. 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

72 130. 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

73 Index to Statistical Tables References are to pages A3 through A64 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 Turnover, 14 Domestic finance companies, 35 Depository institutions Federal Reserve Banks, 10 Reserve requirements, 7 Foreign banks, U.S. branches and agencies, 20 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 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 (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 Business activity, nonfinancial, 42 FARM mortgage loans, 37 Business expenditures on new plant and equipment, 34 Federal agency obligations, 4, 9, 10, 11, 30 Business loans (See Commercial and industrial loans) Federal credit agencies, 31 Federal finance CAPACITY utilization, 42 Debt subject to statutory limitation and types and Capital accounts ownership of gross debt, 29 Banks, by classes, 17 Receipts and outlays, 27, 28 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 27 Central banks, discount rates, 63 Treasury operating balance, 27 Certificates of deposit, 20, 24 Federal Financing Bank, 27, 31 Commercial and industrial loans Federal funds, 3, 5, 16, 18, 19, 20, 24, 27 Commercial banks, 15, 20, 23 Federal Home Loan Banks, 31 Weekly reporting banks, 18-20 Federal Home Loan Mortgage Corporation, 31, 36, 37 Commercial banks Federal Housing Administration, 31, 36, 37 Assets and liabilities, 17-19 Federal Land Banks, 37 Business loans, 23 Federal National Mortgage Association, 31, 36, 37 Commercial and industrial loans, 15, 20, 23 Federal Reserve Banks Consumer loans held, by type, and terms, 38, 39 Condition statement, 10 Loans sold outright, 19 Discount rates (See Interest rates) Nondeposit fund, 16 U.S. government securities held, 4, 10, 11, 29 Number, by classes, 17 Federal Reserve credit, 4, 5, 10, 11 Real estate mortgages held, by holder and property, 37 Federal Reserve notes, 10 Time and savings deposits, 3 Federally sponsored credit agencies, 31 Commercial paper, 3, 22, 24, 35 Finance companies Condition statements (See Assets and liabilities) Assets and liabilities, 35 Construction, 42, 46 Business credit, 35 Consumer installment credit, 38, 39 Loans, 18, 38, 39 Consumer prices, 42, 47 Paper, 22, 24 Consumption expenditures, 48, 49 Financial institutions Corporations Loans to, 18, 19, 20 Profits and their distribution, 33 Selected assets and liabilities, 26 Security issues, 32, 62 Float, 4 Cost of living (See Consumer prices) Flow of funds, 40, 41 Credit unions, 26, 38 (See also Thrift institutions) Foreign banks, assets and liabilities of U.S. branches and Currency and coin, 17 agencies, 20 Currency in circulation, 4, 13 Foreign currency operations, 10 Customer credit, stock market, 25 Foreign deposits in U.S. banks, 4, 10, 18, 19 Foreign exchange rates, 64 DEBITS to deposit accounts, 14 Foreign trade, 51 Debt (See specific types of debt or securities) Foreigners Demand deposits Claims on, 52, 54, 57, 58, 59, 61 Adjusted, commercial banks, 14 Liabilities to, 19, 51, 52-56, 60, 62, 63 Banks, by classes, 17-20 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 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 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 Interbank loans and deposits, 17 Residential mortgage loans, 36 Interest rates Retail credit and retail sales, 38, 39, 42 Bonds, 3 Business loans of banks, 23 SAVING Federal Reserve Banks, 3, 6 Flow of funds, 40, 41 Foreign central banks and foreign countries, 63, 64 National income accounts, 49 Money and capital markets, 3, 24 Savings and loan associations, 8, 26, 37, 38, 40 (See also Mortgages, 3, 36 Thrift institutions) Prime rate, commercial banks, 22 Savings deposits (See Time and savings deposits) Time and savings deposits, 8 Securities (See specific types) International capital transactions of United States, 50-63 Federal and federally sponsored credit agencies, 31 International organizations, 54, 55-57, 60-63 Foreign transactions, 62 Inventories, 48 New issues, 32 Investment companies, issues and assets, 33 Prices, 25 Investments (See also specific types) Special drawing rights, 4, 10, 50, 51 Banks, by classes, 17, 19, 26 State and local governments Commercial banks, 3, 15, 17-19, 20, 37 Deposits, 18, 19 Federal Reserve Banks, 10, 11 Holdings of U.S. government securities, 29 Savings institutions, 26, 37 New security issues, 32 Ownership of securities issued by, 18, 19, 26 LABOR force, 43 Rates on securities, 3 Life insurance companies (See Insurance companies) Stock market, 25 Loans (See also specific types) Stocks (See also Securities) Banks, by classes, 17-19 New issues, 32 Commercial banks, 3, 15, 17-19, 20, 23 Prices, 25 Federal Reserve Banks, 4, 5, 6, 10, 11 Insured or guaranteed by United States, 36, 37 Student Loan Marketing Association, 31 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 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 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

75 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 Robert W. Eisenmenger 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. Herr 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 Gufifey Irvine O. Hockaday, Jr. Henry R. Czerwinski Denver 80217 James E. Nielson Wayne W. Martin Oklahoma City 73125 Patience Latting William G. Evans Omaha 68102 Robert G. Lueder Robert D. Hamilton DALLAS 75222 Robert D. Rogers Robert H. Boykin John V. James William H. Wallace El Paso 79999 Mary Carmen Saucedo Joel L. Koonce, Jr. Houston 77252 Paul N. Howell J.Z. Rowe San Antonio 78295 Lawrence L. Crum Thomas H. Robertson SAN FRANCISCO 94120 Caroline L. Ahmanson John J. Balles Alan C. Furth Richard T. Griffith Los Angeles 90051 Bruce M. Schwaegler Richard C. Dunn Portland 97208 Paul E. Bragdon Angelo S. Carella Salt Lake City 84125 Wendell J. Ashton A. Grant Holman Seattle 98124 John W. Ellis Gerald R. Kelly •Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1984 LEGEND """" Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Publications of Interest FEDERAL RESERVE CONSUMER CREDIT sumer credit protections. This 44-page booklet ex- PUBLICATIONS plains how to use the credit laws to shop for credit, apply for it, keep up credit ratings, and complain about an unfair deal. The Federal Reserve Board publishes a series of Protections offered by the Electronic Fund Transfer pamphlets covering individual credit laws and topics, Act are explained in Alice in Debitland. This booklet as pictured below. The series includes such subjects as offers tips for those using the new "paperless" syshow the Equal Credit Opportunity Act protects wom- tems for transferring money. en against discrimination in their credit dealings, how Copies of consumer publications are available free to use a credit card, and how to use Truth in Lending of charge from Publications Services, Mail Stop 138, information to compare credit costs. Board of Governors of the Federal Reserve System, The Board also publishes the Consumer Handbook Washington, D.C. 20551. Multiple copies for classto Credit Protection Laws, a complete guide to con- room use are also available free of charge. The Equal Credit Opportunity Act and ... TRUTH IN LE4SIN6 What Ihithln Lending Means To You 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