Federal Reserve Bulletin, 1984-09

VOLUME 70 • NUMBER 9 • SEPTEMBER 1984 FEDERAL RESERVE BULLETIN 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 679 SURVEY OF CONSUMER FINANCES, sic policy objectives that it had established 1983 in January for growth of the monetary and credit aggregates in 1984 and set tentative This article presents results from the inobjectives for growth in 1985. For 1984 the come and asset sections of the 1983 Survey policy objectives included growth of 4 to 8 of Consumer Finances, including mainly percent for Ml and 6 to 9 percent for both estimation of the debt obligations and asset M2 and M3 for the period from the fourth holdings of a nationally representative samquarter of 1983 to the fourth quarter of ple of 3,824 American families. 1984. The associated range for growth in total domestic nonfinancial debt was also 693 TREAS UR Y AND FEDERAL RESER VE reaffirmed at 8 to 11 percent for the year FOREIGN EXCHANGE OPERATIONS 1984. Given developments in the first half of During the February-July period under re- the year, the Committee anticipated that view, the exchange markets were subject to M3 and nonfinancial debt might increase at frequent shifts in expectations, and these rates somewhat above the upper limits of shifts were reflected in swings in dollar their 1984 ranges. The tentative ranges esrates. tablished for 1985 included reductions of 1 and Vz percentage point from the upper 705 INDUSTRIAL PRODUCTION limits of the 1984 ranges for Ml and M2 respectively and no changes in the range for Output rose about 0.2 percent in August. M3 and the associated range for total domestic nonfinancial debt. 707 ANNOUNCEMENTS With regard to the implementation of Statement on priced services. policy in the weeks immediately ahead, the Committee issued a directive that called for Financial results for priced service operamaintaining the existing degree of restraint tions. on reserve positions. The members expect- Changes in Board staff. ed such an approach to be associated with growth of Ml, M2, and M3 at annual rates Publication for comment of proposal to of around 5V2, IV2, and 9 percent respectiverevise and expand the Federal Reserve ly in the period from June to September. Board's Rules Regarding Equal Employ- The members agreed that somewhat greater ment Opportunity; extension of period for restraint on reserve conditions would be comment on proposal to revise Regulation acceptable in the context of more substan- K. tial growth in the monetary aggregates, Revision of fees for wire transfers of funds. while somewhat lesser restraint might be appropriate if monetary growth were signif- Admission of six state banks to membership icantly slower. In either event, the need for in the Federal Reserve System. greater or lesser restraint would be considered only against the background of devel- 717 RECORD OF POLICY ACTIONS OF THE opments relating to the continuing strength FEDERAL OPEN MARKET COMMITTEE of the business expansion, inflationary pressures, conditions in financial markets, At its meeting on July 16-17, 1984, the and the rate of credit growth. It was agreed Committee reviewed and reaffirmed the ba- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

that the intermeeting range for the federal A66 BOARD OF GOVERNORS AND STAFF funds rate would be raised to 8 to 12 percent. A68 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS 725 LEGAL DEVELOPMENTS A70 FEDERAL RESERVE BOARD Various bank holding company, bank ser- PUBLICATIONS vice corporation, and bank merger orders; and pending cases. A73 INDEX TO STATISTICAL TABLES AI FINANCIAL AND BUSINESS STATISTICS A75 FEDERAL RESERVE BANKS, BRANCHES, A3 Domestic Financial Statistics AND OFFICES A42 Domestic Nonfinancial Statistics A50 International Statistics A76 MAP OF FEDERAL RESERVE SYSTEM A65 GUIDE TO TABULAR PRESENTATION, STATISTICAL RELEASES, AND SPECIAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 This article was prepared by Robert B. Avery, ing that households had accumulated a large Gregory E. Elliehausen, and Glenn B. Canner, of stock of liquid assets during the war and had the Board's Division of Research and Statistics, deferred expenditures for a wide range of prodand Thomas A. Gustafson of the U.S. Depart- ucts, the Federal Reserve believed that informament of Health and Human Services. Neil Brisk- tion obtained from such a survey would be useful man, Julie Rochlin, and Robert Seifert helped in understanding and predicting consumer exprepare the data. Footnotes appear at the end of penditure and savings patterns. The first such the article. survey was conducted in 1946 for the Federal Reserve by the Bureau of Agricultural Econom- The financial position of American households ics of the United States Department of Agriculhas changed significantly since 1970. To under- ture. Surveys of consumer finances were constand these changes better and to assess their ducted by the Survey Research Center of the implications, the Board of Governors of the University of Michigan annually from 1947 Federal Reserve System, the United States De- through 1970 but then were discontinued. In partment of Health and Human Services, and 1977, balance-sheet data were collected as part five other federal agencies joined together to of a survey of consumer credit sponsored by the sponsor the 1983 Survey of Consumer Finances.1 federal banking agencies.2 In addition, the Feder- The overriding common interest among the spon- al Reserve Board sponsored the one-time Survey sors was the estimation of the debt obligations of Financial Characteristics of Consumers in and asset holdings of a nationally representative 1962, which obtained consumer balance-sheet sample of American families. Such a balance- data that were more detailed than those available sheet approach allows analysis of the net finan- from the surveys of consumer finances.3 The cial position of families, their use of financial 1983 Survey of Consumer Finances updates balinstitutions, their holdings of various types of ance-sheet information from the 1977 survey. No assets, and the structure and sources of their survey since the 1962 Survey of Financial Chardebt obligations. Besides collecting data on the acteristics of Consumers has collected a more balance sheets from 3,824 families, the 1983 comprehensive inventory of consumers' assets survey sought the attitudes of consumers toward than that contained in the 1983 survey. The latest credit use, their reactions to new financial instru- survey provides much new information that anaments and to consumer credit regulations, and lysts may use to identify important trends in detailed information on consumer pension rights income and wealth distribution, asset ownership, and benefits. and household borrowing patterns, and it affords This article presents results from the income a comprehensive understanding of the financial and asset sections of the 1983 Survey of Consum- state of households. The recent survey provides er Finances. Articles in forthcoming issues of the a unique opportunity to link data on consumer FEDERAL RESERVE BULLETIN will present other assets and liabilities, income, and financial beresults from the survey. In addition, a compre- havior. hensive presentation of the survey results is being prepared. SELECTED RESULTS OF THE 1983 SURVEY HISTORICAL ORIGINS This article presents selected highlights from the The Federal Reserve first sponsored a survey of 1983 Survey of Consumer Finances. The unit of consumer finances just after World War II. Not- observation is the family, which is defined to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 Federal Reserve Bulletin • September 1984 include all persons residing together in the same 1983 Survey of Consumer Finances asked redwelling who are related by blood, marriage, or spondents to report their total family income in adoption. Families include one-person units as 1982 from all sources, before deductions and well as units of two or more persons.4 Balance- taxes. Family income, measured in current dolsheet items are reported as of the date of the lars, increased substantially from 1969 to 1982 interview; income is reported for the previous (see table l).5 By 1982, the proportion of families calendar year. with incomes of $25,000 or more had increased to The first section examines the distribution of 39 percent from 17 percent in 1976 and from less family income in 1982 and compares family in- than 5 percent in 1969. Since 1976, mean and come in 1969, 1976, and 1982. The next section median family incomes have increased 55 perfocuses on home equity, the largest single asset cent to $26,259 and 44 percent to $19,446 respecin many families' asset portfolios. The final sec- tively.6 tion presents survey results on ownership and Because the large increases in prices during dollar amounts of holdings of various financial the period under review make comparisons of assets. The discussion covers changes in hold- dollar amounts over time misleading, reported ings of financial assets between 1970 and 1983, family income was adjusted for changes in the holdings of financial assets by income classes price level with the consumer price index (these and by various demographic groups, and the data are also presented in table 1). Comparison characteristics of owners of different types of of the income distribution in constant dollars financial assets. Appendix A describes the sur- reveals that changes in real family income were vey design and data preparation. Appendix B substantially smaller than those in nominal indiscusses sampling, response, and nonresponse come. After remaining nearly constant at about errors. 45 percent from 1969 to 1976, the proportion of families with incomes of $25,000 or more (in constant 1982 dollars) fell to 39 percent in 1982. Family Income Mean and median real family incomes increased slightly between 1969 and 1976. However, in Income is important both as a factor influencing 1982, mean real family income was 9 percent the saving and spending decisions of consumers lower than it was in 1976, and median real family and as an indicator of economic well-being. The income was 16 percent lower. 1. Distribution of family income, selected years Percentage distribution of families, except as noted , —» „ . . . , Current dollars Constant (1982) dollars FFaammiillyy iinnccoommee ((ddoollllaarrss)) 1969 1976 1982 1969 1976 1982 Less than 3,000 14 7 3 2 2 3 3,000-4,999 12 8 7 4 5 7 5,000-7,499 16 10 8 7 6 8 7,500-9,999 16 10 7 6 7 7 10,000-14,999 25 20 14 10 11 14 15,000-19,999 11 15 13 13 12 13 20,000-24,999 4 12 11 13 11 11 25,000-29,999 2 6 9 11 10 9 30,000-39,999 1 5 13 17 15 13 40,000-49,999 * 3 7 8 9 7 50,000 and more 1 3 10 9 12 10 100 100 100 100 100 100 MEMO (dollars) 10,420 16,893 26,259 27,603 28,860 26,259 Median 8,690 13,549 19,446 23,020 23,147 19,446 *Less than 0.5 percent Institute for Social Research, 1971); and Thomas Durkin and Gregory SOURCES. George Katona, Lewis Mandell, and Jay Schmiedes- E. Elliehausen, 1977 Consumer Credit Survey (Board of Governors of kamp, 1970 Survey of Consumer Finances (University of Michigan, the Federal Reserve System, 1977). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 681 2. Share of family income, by income deciles, period is shown in table 2. The share of aggregate selected years family income received by the highest income Percentage distribution of families decile increased a little from 1969 to 1976, rising from 29 percent to 32 percent; it then remained Share of total income IInnccoommee ddeecciillee virtually unchanged through 1982. 1969 1976 1982 The accompanying diagram, which depicts a Lowest 1 1 1 Lorenz curve, graphically displays the size dis- Second 3 3 3 Third 5 4 4 tribution of income presented in table 2. The Fourth 6 6 5 Lorenz curve is determined by plotting the cu- Fifth 8 7 7 Sixth 9 8 8 mulative percentage of aggregate income re- Seventh 11 10 10 Eighth 12 13 13 ceived by the cumulative percentage of families Ninth 16 16 16 arrayed from the lowest to the highest income. Highest 29 32 33 For example, in this case, it shows that in 1982, Total 100 100 100 40 percent of the families received 13 percent of SOURCES. Katona and others, 1970 Survey; and Durkin and Ellie- the income (the sum of the first four numbers in hausen, 1977 Survey. the last column of table 2). The degree of inequality is indicated by the area between the Lorenz curve and the 45-degree line that signifies perfect In part, the changes in real family income equality (that is, say, 40 percent of the families reflect differences in economic activity at the receive 40 percent of the income). The larger this time the surveys were conducted. Both in 1969 area, the greater is the degree of inequality. The and in 1982, the economy was in recession, and curves in the chart indicate that the distribution 1976 was a year of economic recovery. The of family income has become somewhat more decline in real family income may also be attrib- unequal since 1969.8 uted to changes in family composition. For ex- Table 3 presents mean and median family ample, an increase in the number of "families" incomes according to the age, stage in the life consisting of unmarried people (including single- cycle, education, occupation, housing status, person families) contributed to a decrease in and racial and ethnic characteristics of the head average family size between 1976 and 1982 and of the family. Just as previous surveys of conmay have reduced average family income. Statistics from the national income and prod- Distribution of family income uct accounts offer an interesting comparison with Percentage of total income received these data. Such comparisons—between surveybased and aggregate measures of income—are difficult to make because part of the aggregate consists of income that consumers do not receive in the form of money and consequently do not report in surveys. Examples are the imputed value of rental income for owner-occupied housing, contributions by employers to pensions, and in-kind transfers.7 Granted this qualification, aggregate real personal income increased 9 percent from 1976 to 1982, but per capita income rose only 3 percent. Per family real personal income fell 3 percent, however, a decline somewhat smaller than that observed between the 1977 and the 1983 surveys. This divergence in trend suggests that changes in family composition indeed were a factor in the changes in real family income. The distribution of family income over this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 Federal Reserve Bulletin • September 1984 sumer finances found, the 1983 results reveal higher family incomes than nonwhites and Histhat family income tends to increase with the age panics. of the head up to retirement and with the level of education, and to be higher in families headed by individuals in professional, technical, and mana- Home owner ship gerial occupations. Whites also tend to have For most Americans, homeownership is a major social and economic objective. The surveys of consumer finances reveal an increase in rates of 3. Mean and median family income, by selected homeownership between 1970 and 1977 but a family characteristics, 1983 decline between 1977 and 1983 (see table 4).9 While nearly 65 percent of nonfarm families Family income (dollars) CChhaarraacctteerriissttiicc Percent owned their own homes in 1977, only 60 percent of families Mean Median of such families were owners in 1983.10 These rates of homeownership exclude families that Age of family head (years) reside in mobile homes, 83 percent of which were Under 25 8 13,385 12,003 25-34 23 23,963 20,097 owner-occupied. 35-44 19 32,449 27,114 45-54 16 32,935 25,535 55-64 15 32,292 21,855 65-74 12 21,818 12,538 4. Housing status of nonfarm families, selected years 75 and over 7 11,334 7,176 Percentage distribution of families Education of family head Housing status 1970 1977 1983 0-8 grades 14 11,718 8,870 9-11 grades 13 17,146 13,755 High school Homeowner 62 65 60 diploma 32 23,830 20,000 32 28 32 C So o m lle e g e c o d ll e e g g r e e e 2 1 0 9 2 4 7 6 , , 4 4 1 4 2 3 2 3 2 5 , , 0 0 0 0 0 0 M Ot o h b e i r l 2 e home1 4 2 6 1 2 6 Occupation of 100 100 100 family head Professional, 1. Owners and renters. technical 14 36,191 28,278 2. Includes, among others, families who receive housing as a gift or Manager 11 44,685 35,000 Self-employed as compensation from employment and respondents who refused to manager 5 49,925 30,000 answer. Clerical or sales ... 13 23,416 18,000 SOURCES. Katona and others, 1970 Survey, table 3-12; and Durkin Craftsman or and Elliehausen, 1977 Survey, table 11-10. foreman 18 24,730 22,075 Operative, labor, or service worker 29 16,675 14,000 Farmer or farm Many factors could explain these changes in manager 2 26,477 16,365 Miscellaneous 8 12,309 6,991 homeownership. The perception that homeownership offered an effective hedge against inflation Housing status Own 64 31,754 24,623 may have contributed to the growth in homeown- Rent or other 36 16,503 13,000 ership during the 1970s. Growth in the number of Race of family head Caucasian 82 28,035 21,000 families with an unmarried head and increases in Nonwhite and mortgage interest rates may have been partly Hispanic 18 18,405 12,722 responsible for the decline in homeownership in Life-cycle stage of recent years. family head Under 45 years The frequency of homeownership is not uni- Unmarried, no children 12 18,749 15,000 form among all groups of consumers (see table Married, no children 7 32,516 28,150 5). In 1983, at least two-thirds of all families Married, with whose head was at least 35 years old owned their children 23 30,659 25,800 45 years and over own homes while only 34 percent of families Head in labor force 26 35,821 27,000 headed by someone under 35 did. Older persons, Head retired 22 17,315 10,200 whether working or retired, had the highest All ages Unmarried, with frequency of homeownership. Rates of homechildren 9 13,487 11,020 ownership generally fell or were unchanged for All families 100 26,259 19,446 families at all stages of the life cycle between Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 683 5. Housing status of nonfarm families, by selected 1977 and 1983. The only exception was single, characteristics, 1977 and 1983 childless individuals under 45. Of this group, 23 Percentage of families percent owned homes in 1983 compared with only 14 percent in 1977. As table 5 shows, Own Rent CChhaarraacctteerriissttiicc homeownership rates fell for nonwhites and His- 1977 1983 1977 1983 panics but remained nearly the same for whites Family income (constant, between 1977 and 1983. In 1983, the rate of 1982, dollars) Less than 10,000 43 36 50 52 homeownership was 60 percent higher for whites 10,000-19,999 54 51 36 38 than for nonwhites and Hispanics. 20,000-29,999 63 60 25 32 30,000-49,999 80 82 17 13 As one expects, homeownership rates increase 50,000 and more 92 89 7 11 with family income. Only 36 percent of families Age of family head (years) Under 35 41 34 48 55 with incomes of less than $10,000 owned their 35-44 75 66 19 28 own homes in 1983, but 89 percent of families 45-54 80 75 15 18 55-64 76 73 17 20 with incomes of $50,000 or more were homeown- 65 and over 74 70 19 21 ers in that year. Comparisons over time of the Race of family head frequency of homeownership rates for families Caucasian 66 64 24 28 Nonwhite and Hispanic 52 40 42 51 arrayed by income, measured in constant 1982 Life-cycle stage of family dollars, indicates that for most groups homeownhead ership rates declined between 1977 and 1983. Under 45 years Unmarried, no children . 14 23 78 71 Equity in the home, defined as the current Married, no children 45 44 46 44 Married with children 72 65 19 26 value of the property less the amount of first 45 years and over Head in labor force 77 76 15 17 mortgage debt, is the largest asset for many Head retired 77 69 18 23 homeowners.11 The 1983 survey asked each All ages Unmarried, with children 41 38 48 54 homeowner to report the current market value of All families 65 60 28 32 his residence. In addition, each homeowner was questioned about the terms of his outstanding SOURCE. Durkin and Elliehausen, 1977 Survey. 6. Value of houses owned by families and net equity in current and constant dollars, selected years Percentage distribution of owner-occupied nonfarm houses except as noted Current dollars Constant (1983) dollars VVaalluuee oorr eeqquuiittyy11 1970 1977 1983 1970 1977 1983 House value (dollars)2 Less than 25,000 71 21 9 17 9 9 25,000-49,999 25 49 30 42 29 30 50,000-74,999 3 19 25 22 29 25 75,000-99,999 * 7 16 12 16 16 100,000-149,999 1 3 12 6 13 12 150,000 and more * 1 8 2 4 8 100 100 100 100 100 100 MEMO (dollars) Mean 20,751 42,972 72,238 53,190 70,460 72,238 Median 17,800 37,000 57,500 45,625 60,669 57,500 Equity in house (dollars) Less than 15,000 63 26 12 24 14 12 15,000-24,999 23 20 12 17 13 12 25,000-49,999 12 38 33 36 32 33 50,000-74,999 1 11 21 13 21 21 75,000 and more 1 6 22 10 19 22 100 100 100 100 100 100 MEMO (dollars) Mean 14,767 32,122 56,133 37,853 52,670 56,133 Median 11,800 27,000 41,261 30,246 44,272 41,261 1. Mobile homes are excluded. *Less than 0.5 percent. 2. As valued by respondents in the year indicated, except that SOURCES. Katona and others, 1970 Survey, table 3-6; and Durkin houses purchased during 1976, 1977, 1982, or 1983 were valued at the and Elliehausen, 1977 Survey. purchase price. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 Federal Reserve Bulletin • September 1984 mortgage debt. From the responses on payment 1983. However, home equity varies considerably size, maturity, and interest rate, outstanding with the characteristics of the household (see mortgage debt was calculated. Estimated first table 7). According to survey results, both mean mortgage debt outstanding was subtracted from and median equity increase steadily with total reported property value to determine home equi- family income and with the age of the family ty for each homeowner. head until 65. In 1983, both mean and median Increases in housing prices boosted the medi- home equity were higher for whites than nonan reported value of homes dramatically between whites and Hispanics. 1970 and 1977, more than doubling it, from $17,800 to $37,000 (see table 6). While nominal housing prices continued to rise between 1977 Financial Assets and 1983, the median value of homes declined 5 percent in real terms over this six-year interval. Economic developments in the past six years Interestingly, in face of this decline, the mean have altered markedly the selection of financial real home value increased. This finding may be assets by consumers. In financial markets, attributed to an increase in the proportion of deregulation has increased the discretion of fifamilies owning homes valued at $150,000 or nancial institutions in the pricing and breadth of more measured in constant 1983 dollars. product offerings. Nonbank competitors have Changes in calculated real equity values and aggressively sought consumer savings with a real home prices exhibited similar patterns be- variety of new instruments. Yields on instrutween 1970 and 1983. Median home equity in- ments, in both real and nominal terms, have also creased 46 percent in real terms between 1970 risen substantially over this period. For these and 1977 and then declined nearly 7 percent to reasons, asset holdings of consumers received $41,261 in 1983. Real mean home equity in- particular emphasis in the 1983 Survey of Concreased 39 percent between 1970 and 1977 and sumer Finances. then increased nearly 7 percent to $56,133 in Consumers were asked to report on their asset holdings in greater detail than in any other recent survey of consumer finances. Questions were 7. Mean and median net equity in homes of nonfarm homeowning families, by selected characteristics, asked about the size and location of each check- 1983 ing, money market, and savings account.12 Simi- Dollars lar detail was solicited about stock holdings, different types of bonds, trusts, mutual fund Characteristic Mean Median holdings, individual retirement accounts (IRAs), Family income (dollars) Keogh accounts, certificates of deposit, life in- Less than 10,000 39,9% 29,810 10,000-19,999 42,896 35,000 surance, loans to friends or relatives, real estate, 20,000-29,999 48,309 38,075 30,000-49,999 55,679 46,206 and businesses. Questions were asked about 50,000 and more 100,675 74,756 pension assets and holdings in nontaxable forms Age offamily head (years) such as municipal bonds and nontaxable mutual Under 35 31,4% 25,985 35-44 52,067 40,600 funds. Respondents were also queried about 45-54 64,467 50,000 55-64 73,578 55,000 their use of different financial services and the 65 and over 58,269 41,857 reasons for their choices, about their attitudes Race of family head toward risk and savings, and about income re- Caucasian 57,623 43,466 Nonwhite and Hispanic 45,329 30,000 ceived from various financial instruments. Emphasizing only a few of the numerous findings Life-cycle stage of family head Under 45 years from all of these questions, this section highlights Unmarried, no children 35,437 30,000 Married, no children 36,508 27,504 the ownership of liquid and total financial assets Married with children 45,539 34,900 by different types of families. 45 years and over Head in labor force 68,388 53,772 Comparisons of the percentages of families Head retired 6622,,446644 4444,,116688 All ages holding different types of financial assets in 1970, Unmarried, with children 41,879 34,294 1977, and 1983 indicate a substantial reduction in All families 56,133 41,261 the proportion of families with savings accounts, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 685 8. Families holding selected liquid and other assets such as individual retirement accounts, financial assets, selected years certificates of deposit, and money market ac- Percentage of families counts. The decline in stock holding is somewhat more puzzling, although it may be explained Type of asset 1970 1977 1983 partially by a decline in the popularity of stock Liquid assets Checking account 75 81 79 mutual funds and investment clubs as well as by Certificates of deposit 8 14 20 the lackluster performance of the stock market Savings account 65 77 62 Money market account n.a. n.a. 14 during most of the 1977-83 period. Savings bonds 27 31 21 Other financial assets Table 9 shows distributions by dollar amount Stocks 25 25 19 of liquid and total financial asset holdings in Nontaxable bonds' Other bonds' } 2 2 3 1970, 1977, and 1983. Liquid assets include checking, money market, and savings accounts; 1. The 1970 Survey did not distinguish between household ownership of municipal bonds (nontaxable) and corporate bonds (taxable), individual retirement and Keogh accounts; cern.a. Not available. tificates of deposit; and savings bonds. Financial SOURCES. Katona and others, 1970 Survey; and Durkin and Elliehausen, 1977 Survey. assets are liquid assets plus stocks, other bonds, and trusts. Over this period, the proportion of savings bonds, and stocks since 1977 (see table families that did not report liquid assets declined 8). The decline in savings accounts can be ex- slightly, from 16 percent to 12 percent. Mean plained largely by the growth in holdings of other holdings of liquid assets increased 15 percent in 9. Distribution of total financial assets and liquid assets, selected years Percentage distribution except as noted Current dollars Constant (1983) dollars 1970 1977 1983 1970 1977 1983 Total financial assets' 16 11 12 16 11 12 1-999 34 30 27 22 24 27 1,000-1,999 10 10 9 9 9 9 2,000-4,999 14 14 13 13 12 13 5,000-9,999 9 9 10 11 11 10 10,000-14,999 4 6 5 6 6 5 15,000-24,999 5 6 7 6 7 7 25,000-49,999 3 7 7 7 8 7 50,000-99,999 2 4 5 5 5 5 100,000 and more 1 3 5 5 6 5 100 100 100 100 100 100 MEMO (dollars) 9,088 14,803 24,128 23,295 24,273 24,128 Median 900 1,850 2,300 2,307 3,033 2,300 Liquid assets2 None 16 11 12 16 11 12 1-199 14 13 9 7 9 9 200-499 12 10 9 6 7 9 500-999 11 9 10 9 9 10 1,000-1,999 11 11 10 11 10 10 2,000-4,999 15 15 14 15 14 14 5,000-9,999 9 9 10 11 12 10 10,000-24,999 8 12 13 12 13 13 25,000-39,999 2 3 5 5 6 5 40,000 and more 2 6 8 7 10 8 100 100 100 100 100 100 MEMO (dollars) Mean 4,398 9,284 12,934 11,274 15,224 12,934 Median 800 1,550 1,967 2,051 2,542 1,967 1. Financial assets include liquid assets plus stocks, other bonds, money market accounts, certificates of deposit, IRA and Keogh nontaxable holdings (municipal bonds and shares in certain mutual accounts, and savings bonds. funds), and trusts. SOURCE. Katona and others, 1970 Survey, and Durkin and Elliehau- 2. Liquid assets include checking accounts, savings accounts, sen, 1977 Survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 Federal Reserve Bulletin • September 1984 constant dollars, from $11,274 in 1970 to $12,934 liquid assets may have been lower in 1970 and in 1983. In contrast, median holdings decreased 4 1983 because families used such assets to meet percent from 1970 to 1983. Mean and median shortfalls in income. holdings were higher in 1977 than in either 1970 Mean holdings of total financial assets were or 1983. However, as mentioned, 1970 and 1983 roughly twice the amount of mean holdings of followed recessions, while 1977 was in the mid- liquid assets during this period. The mean dle of an economic expansion. Thus holdings of amount of financial assets in constant dollars 10. Mean and median liquid and total financial assets of families holding such assets, by selected family characteristics, 1983 PPeerrcceenntt ooff Liquid assets (dollars)1 Total financial assets (dollars) CChhaarraacctteerriissttiicc ffaammiilliieess oowwnniinngg lliiqquuiidd aasssseettss Mean Median Mean Median Family income (dollars) Less than 5,000 57 2,177 500 3,254 513 5,000-7,499 70 3,663 1,000 4,2% 1,000 7,500-9,999 75 5,378 800 6,114 848 10,000-14,999 87 9,549 1,719 11,619 2,205 15,000-19,999 93 9,130 1,513 12,021 1,780 20,000-24,999 95 11,365 2,105 14,078 2,385 25,000-29,999 97 12,509 2,798 18,539 3,349 30,000-39,999 99 17,783 4,717 22,752 5,950 40,000-49,999 99 16,285 7,828 32,342 10,631 50,000 and more 99 45,541 19,886 125,131 31,658 Age of family head (years) Under 25 81 1,972 600 2,646 746 25-34 87 4,274 1,203 7,%3 1,514 35-44 91 8,911 3,000 14,414 3,750 45-54 89 14,826 3,308 23,009 4,131 55-64 91 25,439 7,425 54,951 9,338 65-74 88 30,666 9,676 65,339 11,400 75 and over 86 26,481 7,885 37,060 10,350 Education of family head 0-8 grades 72 9,552 1,490 10,598 1,502 9-11 grades 77 11,394 1,519 14,437 1,800 High school diploma 91 11,822 2,212 17,221 2,550 Some college 93 13,165 2,888 24,466 3,785 College degree 98 25,112 7,825 61,016 10,977 Occupation of family head Professional, technical 97 19,276 5,521 32,226 7,727 Manager % 22,651 7,720 47,713 10,650 Self-employed manager 96 34,784 11,110 125,983 15,150 Clerical or sales 94 13,623 3,255 24,433 4,225 Craftsman or foreman 90 9,690 2,105 13,592 2,775 Operative, labor, or service worker... 79 6,122 1,115 7,441 1,316 Farmer or farm manager 93 38,619 8,500 42,118 10,203 Miscellaneous 74 15,169 1,275 21,751 1,372 Housing status Own 94 18,385 5,000 34,534 6,069 Rent or other 78 6,759 1,000 12,010 1,100 Race of family head Caucasian 93 16,050 3,500 30,560 4,500 Nonwhite and Hispanic 66 6,217 961 7,339 1,000 Life-cycle stage of family head Under 45 years Unmarried, no children 89 4,980 1,303 7,920 1,700 Married, no children 91 6,338 2,384 9,479 2,894 Married, with children 92 6,460 1,677 10,177 1,842 45 years and over Head in labor force 93 20,962 6,230 42,790 8,199 Head retired 86 28,203 6,725 50,170 8,747 All ages Unmarried, with children 67 4,016 775 11,062 %1 All families 88 14,695 2,850 27,365 3,500 1. The figures for mean and median liquid and total financial assets in this table differ from those in table 9 because the latter include families without liquid or financial assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 687 increased slightly, from $23,295 in 1970 to holdings are much higher than the medians, $24,128 in 1983. Median holdings of financial reflecting very large holdings by a few families. assets were about the same in real terms in 1970 Holdings of liquid assets by age, stage in the and 1983. life cycle, education, occupation, housing status, The proportion of owners and the dollar and racial and ethnic group follow the patterns amounts of holdings of liquid assets, and of related to income with one notable exception. financial assets generally, rise dramatically from Although families headed by an older or retired the lowest to the highest family income groups person are less likely to own liquid assets, those (see table 10). The proportion of families having who do own them tend to have holdings that are liquid assets increases from 57 percent for fam- larger than the average. ilies with less than $5,000 to 97 percent or more The 1983 patterns of ownership of specific for families with above $25,000. The rise of both assets by different groups, shown in table 11, are mean and median dollar holdings of liquid assets consistent with findings from past surveys. Lowwith income is also striking. However, the mean income and nonwhite and Hispanic families are 11. Ownership of selected assets by families, by selected family characteristics, 1983 Percentage of families Financial assets OOtthheerr aasssseettss Liquid assets Other financial assets CCChhhaaarrraaacccttteeerrriiissstttiiiccc Check- Money Certifi- IRA or Non- Proi c n o g u a n c t - a S c a c v o in u g n s t a m cc a o rk u e n t t c d a e t p e o s s o it f a K cc e o o u g n h t S b a o v n in d g s s Stocks Bonds ta h x o a l b d- le Trust p t e y r - B ne u s s s iings' Family income (dollars) Less than 10,000 . 53 39 3 10 2 7 5 * * 2 7 5 10,000-19,999 77 59 10 19 7 16 13 2 2 2 14 8 20,000-29,999 88 72 12 21 16 24 20 3 1 3 18 16 30,000-49,999 94 78 21 26 30 33 31 3 4 6 28 21 50,000 and more .. 97 75 36 36 55 35 51 11 16 12 44 37 Age of family head (years) Under 35 72 63 8 9 9 20 13 1 1 4 10 7 35-44 83 68 16 16 19 27 22 3 3 4 20 13 45-54 81 65 12 18 25 23 22 3 3 6 22 11 55-64 83 58 18 30 33 21 25 5 5 4 30 12 65 and over 80 53 18 37 8 14 21 4 5 3 20 7 Housing status Own 88 68 17 27 22 25 24 3 4 5 24 12 Rent or other 63 51 8 9 7 13 11 2 1 3 9 4 Race Caucasian 85 66 15 23 19 23 22 3 3 5 21 1166 Nonwhite and Hispanic 49 45 5 6 6 10 7 * 2 1 11 7 Life-cycle stage of family head Under 45 years Unmarried, no children — 73 62 13 9 11 14 17 2 1 3 1100 1100 Married, no children 84 68 17 13 15 23 21 1 2 6 1155 1144 Married with children 82 70 10 13 15 28 17 1 2 4 18 1199 45 years and over Head in labor force 86 66 17 27 32 23 25 4 4 5 28 22 Head retired 78 50 16 34 8 15 20 4 5 3 19 7 All ages Unmarried with children 54 50 6 8 5 16 9 2 1 4 7 4 All families 79 62 14 20 17 21 19 3 3 4 19 14 1. Municipal bonds and shares in certain mutual funds. "Less than 0.5 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 Federal Reserve Bulletin • September 1984 considerably less likely than upper income and The survey data suggest that ownership of white families to have accounts with financial nonbank financial assets, such as stocks and institutions. As might be expected, ownership of bonds, is not widespread. Most families that own every type of asset is an increasing function of stock did not appear to be active investors. For income. The stage in the life cycle appears to example, of the one-fifth in the sample who have less influence than income does on holdings reported owning stock, only 40 percent reported except for certificates of deposit, individual re- owning shares in more than one company. An tirement accounts, and nontaxable bonds. Inter- even smaller percentage of stockowners reported group differences are even less apparent for having a brokerage account (35 percent) or tradmedian dollar holdings (table 12). Although, in ing stock in 1982 (27 percent). Similarly, only a general, nonwhites and Hispanics are less likely small fraction of the sample reported seeking to hold assets, those who have them apparently advice from professionals such as lawyers (5 hold amounts similar to those held by white percent), accountants (6 percent), or tax advisers families. (4 percent). The same was true of families in the 12. Median amount of assets of families holding such assets, by selected family characteristics, 1983 Dollars Financial assets OOtthheerr aasssseettss Liquid assets Other financial assets CCChhhaaarrraaacccttteeerrriiissstttiiiccc Non- C i c n h o g e u c a n k c t - - a S c a c v o in u g n s t a M m cc a o o r n k u e e n y t t c d C a e e t p e r o t s i s f o i i t - f a I K c R c e A o o u g o n h r t S b a o v n in d g s s Stocks Bonds ta h i x n o a g l b d s1 l - e Trust P p t e r y o r - - B n u es si s - Family income (dollars) Less than 10,000 . 300 500 3,160 5,799 2,000 205 1,957 1,827 6,923 3,282 15,000 20,000 10,000-19,999 400 840 5,250 13,250 2,500 200 3,500 10,000 12,240 2,654 20,000 12,867 20,000-29,999 500 1,100 7,250 11,902 2,000 300 2,000 6,250 3,000 5,750 29,375 31,250 30,000-49,999 625 1,500 6,000 10,000 3,332 475 3,250 8,500 6,500 10,000 40,000 42,500 50,000 and more .. 1,700 3,837 14,000 18,046 4,500 500 13,512 20,000 26,604 15,000 83,000 100,000 Age of family head (years) Under 35 300 500 4,388 4,000 2,000 200 1,200 7,511 2,747 2,957 25,000 13,500 35-44 500 1,194 6,000 8,717 3,000 300 3,300 5,272 8,673 8,000 40,000 40,000 45-54 600 1,400 15,250 8,250 3,790 330 3,623 8,400 16,500 10,000 27,000 52,500 55-64 995 1,588 7,400 12,255 4,000 750 7,250 12,500 17,500 15,500 40,000 55,000 65 and over 987 2,412 11,156 19,892 6,000 846 10,150 20,500 21,932 20,791 40,000 83,202 Housing status Own 600 1,500 9,213 11,000 4,000 352 5,000 15,000 14,125 10,000 35,750 52,500 Rent or other 400 572 5,000 7,957 2,250 288 2,500 5,511 9,914 3,032 30,199 20,690 Race of family head Caucasian 535 11,,224400 8,000 10,000 4,000 326 4,673 10,000 15,726 10,000 40,000 47,700 Nonwhite and Hispanic 400 700 10,000 10,000 2,500 288 989 17,500 2,417 1,616 20,000 50,000 Life-cycle stage of family head Under 45 years Unmarried, no children 400 525 5,000 4,500 2,875 200 2,073 10,000 5,750 400 32,500 13,500 Married, no children 500 890 4,750 5,200 2,918 300 1,550 1,100 5,500 6,016 40,450 24,690 Married with children 350 1,000 6,000 5,400 2,376 200 2,500 5,272 7,676 2,960 31,546 30,000 45 years and over Head in labor force 750 1,550 10,000 10,000 4,000 500 5,040 10,000 22,500 12,872 40,000 55,000 Head retired 900 2,188 11,156 19,392 4,000 800 10,000 17,500 13,740 20,500 31,000 97,500 All ages Unmarried with children 264 460 4,000 5,000 1,728 263 1,650 850 10,298 3,200 20,250 13,392 All families 500 1,151 8,000 10,000 4,000 325 4,016 10,000 14,125 10,000 35,000 50,000 1. Municipal bonds and shares in certain mutual funds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 689 13. Selected characteristics of asset owners and assets, by type of asset, 1983 MMeeddiiaann ttoottaall Percent held by selected PPeerrcceenntt ooff MMeeddiiaann ssiizzee MMeeddiiaann ffiinnaanncciiaall families, ranked by income iinnccoommee TTyyppee ooff aasssseett aallll ffaammiilliieess ooff aasssseett aasssseettss ooff oowwnneerrss oowwnniinngg ((ddoollllaarrss)) ((ddoollllaarrss)) ooff oowwnneerrss Top 10 Top 2 ((ddoollllaarrss)) percent percent Financial assets, total Liquid assets 88 2,850 21,600 3,501 51 30 Checking account 79 500 23,000 4,355 41 23 Savings account 62 1,151 23,580 4,839 26 8 Money market account 14 8,000 33,190 27,360 40 15 Certificates of deposit 20 10,000 26,000 26,750 33 15 IRA or Keogh account 17 4,000 38,170 20,961 48 17 Savings bonds 21 325 29,003 8,782 26 12 Other financial assets Stocks 19 4,016 33,438 22,626 72 50 Bonds 3 10,000 42,500 71,952 70 39 Nontaxable holdings' 3 14,125 52,575 115,250 86 71 Trust 4 10,000 32,128 25,395 46 34 Other assets Property 19 35,000 31,000 12,036 50 20 Business 14 50,000 32,138 11,300 78 33 1. Municipal bonds and shares in certain mutual funds. top income decile, those with incomes of $50,000 FUTURE REPORTS or more: Only about one-half of these families reported owning any stock, and less than one- Articles in forthcoming issues of the BULLETIN sixth reported owning other nonbank financial will focus on other results from the 1983 Survey assets. Even for this group, dollar holdings of of Consumer Finances. Family debt will be the real estate property and business holdings were next topic covered, along with an analysis of more important than holdings of financial assets. both the level and the changes in mortgage debt The concentration of nonliquid financial assets and consumer credit outstanding. The article will in a small number of families with very high also investigate the sources of these loans and incomes is apparent from table 13. That table the factors that influence the family's selection of presents the median income and median total a creditor. financial assets in 1983 along with the percentage Recognizing that a relatively small proportion of total dollar holdings of each type of asset held of families have substantially larger holdings of by the top 10 percent of families in the sample assets than other families, and thus are adequate- (income of $50,000 or more) and the top 2 ly represented only in a very large random sampercent (income of $100,000 or more). Similar ple, the sponsors of the 1983 Survey of Concalculations are presented for total financial as- sumer Finances obtained a special sample of sets. The results are striking. Asset holdings are high-income families from the United States Demuch more highly concentrated than family in- partment of the Treasury. These families were come. More than 70 percent of the dollar hold- given the same questionnaire as the larger, crossings of nontaxable bonds, 50 percent of the section sample, whose results are reported here. stockholdings, and 39 percent of the other bonds In total, 438 high-income families completed are held by the 2 percent of families with incomes interviews. This special sample presents an unthat exceed $100,000. Yet only 15 percent of the usual opportunity to examine in some detail the liquid asset holdings and 20 percent of the prop- financial behavior of the very wealthy. The reerty values are held by this group. These families sults of this analysis will be presented in a hold about 30 percent of the financial assets in forthcoming BULLETIN. the sample, yet receive about 15 percent of the income. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 Federal Reserve Bulletin • September 1984 FOOTNOTES 7. The Census Bureau's Current Population Survey (CPS) provides annual data on household income. The bureau 1. The other agencies were the Federal Deposit Insurance reports a downward trend since 1973 in mean and median real Corporation, the Comptroller of the Currency, the Federal family income. Its data for 1969, 1976, and 1982 family Trade Commission, the U.S. Department of Labor, and the income are consistent with findings from the surveys of U.S. Treasury, Office of Tax Analysis. consumer finances. Like the survey, the CPS does not 2. Thomas A. Durkin and Gregory E. Elliehausen, 1977 include the imputed rental value of owner-occupied housing Consumer Credit Survey (Board of Governors of the Federal or other forms of nonmoney income. Reserve System, 1978). 8. The Gini coefficient is the ratio of the area between the 3. Dorothy S. Projector and Gertrude S. Weiss, Survey of Lorenz curve and the 45-degree line to the total area below Financial Characteristics of Consumers (Board of Governors the 45-degree line. The larger this ratio, the greater the degree of the Federal Reserve System, August 1966). of inequality. Gini ratios for 1969, 1976, and 1982 are 0.39, 4. This definition of "family" is consistent with those used 0.42, and 0.45 respectively. Thus the distribution of family in previous surveys of consumer finances. However, it differs income, by this measure, appears to have become more from the definition used by the Bureau of the Census. The unequal during the years 1969-82. bureau calls one-person units "nonfamily householders" or 9. The 1983 figure for homeownership in table 4 differs "secondary individuals," depending on their housing ar- from the one in table 3 because farm families are excluded in rangements. table 4 and occupants of mobile homes are in a separate 5. Data for 1969 and 1976 family income in table 1 are from category. the data tapes of the 1970 Survey of Consumer Finances and 10. The growing inability of families in early stages of the the 1977 Consumer Credit Survey respectively. There were life cycle to afford homes is probably a more important factor 2,317 respondents in the 1970 survey and 2,563 respondents than foreclosures and forced sales in the decline in homeownin the 1977 survey. Summaries of the basic results of these ership. surveys are found in George Katona, Lewis Mandell, and Jay 11. Home equity could also be defined to exclude out- Schmiedeskamp, 1970 Survey of Consumer Finances (Uni- standing second mortgages and other debts secured by the versity of Michigan, Institute of Social Research, 1971), and home. Durkin and Elliehausen, 1977 Consumer Credit Survey. 12. Money market accounts include both money market 6. Survey respondents have a tendency to underreport deposit and money market mutual fund accounts. income so that the actual means and medians are likely to be 13. Copies of the questionnaire, code book, and data tape higher than those shown in table 1. For a discussion of containing responses to the survey may be obtained from response errors in consumer surveys and the implications for Robert Chamberlin, Board of Governors of the Federal analysis, see Arthur L. Broida, "Consumer Surveys as a Reserve System, Washington, D.C. 20551. Source of Information for Social Accounting: The Problems," in The Flow-of-Funds Approach to Social Accounting: Appraisals, Analysis and Applications, National Bureau of Economic Research, Studies in Income and Wealth, vol. 26 (Princeton University Press, 1962), pp. 335-81. APPENDIX A: SURVEY DESIGN Interviewing for the 1983 survey was carried out by the Survey Research Center of the Uni- The methods employed in the 1983 Survey of versity of Michigan from February through July Consumer Finances are similar to those used in 1983. A total of 3,824 families voluntarily particiearlier surveys.13 A multistage probability sam- pated and completed personal interviews during pling design was used to select a sample of this period. Within each participating family the dwelling units and their occupants representative individual selected as respondent was either the of all families in the coterminous United States head of the family or, in the case of a married (the lower 48 states), exclusive of those on couple, the person most knowledgeable about military installations. Participating families were the family finances. Respondents were encourdrawn from 74 sample points in 37 states and the aged to consult other family members and finan- District of Columbia. The sample represents the cial records in an effort to obtain complete and four major geographic regions—Northeast, accurate responses. Nevertheless, as is the case North Central, South, and West—in proportion with all sample surveys, data derived from the to their respective populations. Probability selec- Survey of Consumer Finances are subject to tion was enforced at all stages of sampling. sampling errors, reporting errors, and errors due Interviewers were given no discretion in the to nonreporting. Appendix B discusses the influchoice of households and families to be inter- ence of these factors on the results of consumer viewed. surveys. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Survey of Consumer Finances, 1983 691 The numbers presented in the tables of this regression models, "hot deck" imputations, and article are based upon data that differ somewhat inferences from other surveys was used to assign from the raw sample responses. Particularly for values for all missing asset, liability, and income questions of a sensitive nature, respondents are data in the former group. The 159 observations in not always willing to answer. As a result, conclu- the latter group (4.1 percent of the sample) were sions based only on actual responses, ignoring discarded. A probit regression was fit for the missing values, can be biased. To correct for this included and excluded groups utilizing informapotential bias, a series of statistical procedures tion available for all observations, to calculate a was used with the 1983 survey data to impute sampling weight to compensate for any nonranmissing values. A detailed discussion of these dom exclusion of observations with missing valimputation techniques will appear in the compre- ues. This weight was used in conjunction with hensive report on the results of the 1983 Survey the survey's response weights to weight the of Consumer Finances. 3,665 observations used to construct the tables. To summarize these procedures, observations Although this procedure could have altered rewere separated into two groups: those in which sults, as a practical matter, weighted tables did the majority of dollar figures were present and not differ dramatically from tables computed those in which they were not. A combination of from unweighted data. B.l. Approximate sampling errors of survey APPENDIX B: SAMPLING, RESPONSE, AND findings, by size of sample or subgroup1 NONRESPONSE ERRORS Percentage Estimates of population characteristics derived Number of interviews Reported from sample interview surveys such as the 1983 percentage 3,000 2,000 1,000 500 300 100 Survey of Consumer Finances differ somewhat from the figures that would have been obtained if 50 2.5 2.8 3.6 4.9 6.2 10.5 a complete census had been taken using the same 30 or 70 2.3 2.5 3.3 4.5 5.7 9.6 20 or 80 2.0 2.2 2.9 3.9 4.9 8.4 questionnaire, instructions, and enumerators. 10 or 90 1.5 1.7 2.2 2.9 3.7 6.3 5 or 95 1.1 1.2 1.6 2.1 2.7 4.6 All information derived from the surveys of consumer finances is subject to sampling errors, 1. The figures in this table represent two standard errors. reporting errors, and errors due to nonreporting. errors associated with various sample sizes and reported percentages from a survey. This table Sampling Errors was constructed assuming a 95 percent confidence level. Therefore, for most responses, the Sampling errors arise when survey estimates are chances are 95 in 100 that the value being estibased on a sample of a population rather than a mated lies within a range equal to the reported complete census of that population. Sampling percentages, plus or minus the sampling error. error is a measure of the possible random devi- For most of the tables presented in this article, ation of survey findings resulting from the selec- the appropriate sample size is between 1,000 and tion of a particular sample. A statistical tech- 2,000 respondents. nique is available for measuring these chance fluctuations in survey results. Although this technique does not measure the actual error of a Reporting Errors particular sample result, given a stated probability and a known sample size, it does provide a All survey results are subject to reporting errors. method of determining the range on either side of Reporting errors may occur either accidentally, the sample estimate within which the "true" purposely, or from a lack of information. Reportvalue is likely to fall. ing errors arise because respondents may misun- Table B.l contains the approximate sampling derstand questions, falsify responses, or simply Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 Federal Reserve Bulletin • September 1984 lack interest in the survey. They may also arise the survey. This inability may occur because the because interviewers misinterpret responses or family refuses to participate, cannot be contactquery respondents in an inconsistent manner. ed after repeated callbacks, is medically inca- These sources of error can be minimized by pacitated, or does not understand the language careful training of interviewers and by gaining used by the interviewer. Problems of nonrethe confidence and cooperation of respondents. sponse may be reduced by imposing strict re- Identifying inconsistencies during data process- quirements for response rates on the organizaing and coding of responses also aids in minimiz- tion conducting the interviewing. A response ing reporting errors. rate of 71 percent was achieved for the 1983 Survey of Consumer Finances, while the 1977 Survey of Consumer Credit recorded a response Nonresponse Errors rate of 75 percent. Nonresponse errors, like reporting errors, are not precisely measurable. Nonresponse errors arise because of an inability However, they seem to remain fairly constant in to interview a family selected for participation in successive surveys. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

693 Treasury and Federal Reserve Foreign Exchange Operations This 45th joint report reflects the Treasury- resolved quickly. Market participants felt that Federal Reserve policy of making available addi- the scope for flexibility in monetary policy would tional information on foreign exchange opera- similarly be limited in view of sensitivities to the tions from time to time. The Federal Reserve high level of interest rates both in nominal and Bank of New York acts as agent for both the real terms. Treasury and the Federal Open Market Commit- Meanwhile, the climate for investment abroad tee of the Federal Reserve System in the conduct appeared to be improving. News of strengthenof foreign exchange operations. ing foreign industrial activity and orders, espe- This report was prepared by Sam Y. Cross, cially in Germany, generated expectations of Manager of Foreign Operations for the System rising earnings and prompt relief from earlier Open Market Account and Executive Vice Presi- financial strains. Inflation remained quiescent, dent in charge of the Foreign Group of the and several countries were making clear progress Federal Reserve Bank of New York. It covers the in reducing the structural components of their period February 1984 through July 1984. Previ- budget deficits. ous reports have been published in the March Under these circumstances, foreign exchange and September [October 1982] BULLETINS of market participants questioned whether the bureach year beginning with September 1962. geoning current account deficit of the United During the February-July period under review, 1. Federal Reserve reciprocal currency arrangements the exchange markets were subject to frequent Millions of dollars shifts in expectations, shifts that were reflected in swings in dollar rates. The dollar declined Amount of Amount of facility, facility, substantially during February and early March Institution July 31, July 31, 1983 1984 only to strengthen thereafter. By the end of July, it had risen on balance against major currencies Austrian National Bank 250 250 National Bank of Belgium 1,000 1,000 to trade at an 11-month high against the Japanese Bank of Canada 2,000 2,000 National Bank of Denmark 250 250 yen, an 11-year high against the German mark, Bank of England 3,000 3,000 and at record levels against many other Europe- Bank of France 2,000 2,000 German Federal Bank 6,000 6,000 an currencies. Bank of Italy 3,000 3,000 In early February, sentiment toward the dollar Bank of Japan 5,000 5,000 Bank of Mexico turned decidedly cautious, though it was trading Regular facility 700 700 in the exchange markets close to highs reached in Special facility 269 0) Netherlands Bank 500 500 early January. Market observers were concerned Bank of Norway 250 250 Bank of Sweden 300 300 that economic policies would be unduly stimula- Swiss National Bank 4,000 4,000 tive given the economy's underlying strength, Bank for International and they came to focus on the risk for the dollar Settlements Swiss francs/dollars 600 600 of a potential rekindling of inflation. Evidence Other authorized European indicated that the U.S. economy was growing far currencies/dollars 1,250 1,250 more rapidly than had been estimated just weeks Total 3300,,336699 3300,,110000 before. Budget deliberations left the impression 1. Facility, which became effective August 30, 1982, expired on that the deficit problems were unlikely to be August 23, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 Federal Reserve Bulletin • September 1984 States could be financed at prevailing exchange continued to firm, market participants no longer rates and interest differentials. The deficits pro- expected the central bank to resist a rate rise. By jected for 1984-85 implied that the United States late March, U.S. interest rates of all maturities would require capital inflows of such a magni- had increased about 1 percentage point, and on tude as to eliminate the large net creditor posi- April 9 the Federal Reserve raised its discount tion the United States had established over the rate to 9 percent, bringing it more in line with entire postwar period. Public officials and private money market rates. About the same time, the commentators around the world expressed con- Congress and the administration were moving cern about the size of the financing requirements toward agreement on a "down payment" to ahead, the dependency of the United States on reduce the fiscal deficit. Indeed, work on some foreign capital inflows, and the vulnerability of of the legislation to cut the deficit $150 billion the dollar to a potential shift in investor senti- over three years was completed before the conment. gressional summer recess. Market participants were, therefore, sensitive Largely in response to these developments, to reports that some internationally oriented in- the dollar reversed course in the exchange marvestors were already reducing the share of dol- kets early in March. With real interest rates in lar-denominated assets in their portfolios in favor the United States again perceived to be rising, of the German mark and other currencies. The concerns about financing the current account belief spread that the dollar had begun a long- deficit receded. Also, earlier predictions of gathawaited decline. Commercial leads and lags, as ering economic strength abroad were disappointwell as professional positions, were turned ed. The immediate outlook was complicated in a against the dollar. As the dollar declined and number of important countries by labor disputes economic statistics confirmed that U.S. econom- in key industries that draw attention to serious ic growth remained stronger than expected, labor-management conflicts, inflexibility of some market observers pointed to the additional work rules, and a variety of domestic political impact a drop in the dollar would have on issues. Thus, the earlier, more positive assessdomestic prices. Although U.S. interest rates ment of the investment climate abroad tended to rose modestly during February and March, the erode, and talk of portfolio shifts out of the dollar increases were seen as not fully compensating gave way to reports of investors returning to for the escalation of inflationary expectations. dollar assets. Thus, the dollar fell steadily through the first By early May, economic statistics suggested week in March. Its decline of 10 percent against that the U.S. economic expansion was remaining the German mark was among the largest. On a exceptionally vigorous in the second quarter and trade-weighted average basis the dollar declined that credit demands were reflecting heavy borabout 7 percent. rowing needs in both the private and public In March, market participants began to sense sectors. With the Federal Reserve then widely more restraint in U.S. monetary policy and more presumed to be willing to let these developments progress in reducing the fiscal deficit than they show through in rising interest rates, expectahad previously anticipated. The narrowly de- tions solidified that dollar-based rates would fined monetary aggregate (Ml) had strengthened increase substantially further. Banks sought to relative to its intended growth range. More fun- lengthen their liabilities so as to lock in the cost damentally, the preliminary statistics for the first of funds, putting medium-term interest rates esquarter showed credit demands accelerating rap- pecially under pressure. By the end of May, most idly and the overall economy expanding far more dollar-based market rates had risen another full quickly than the Federal Open Market Commit- percentage point. Since most foreign interest tee had assumed when it set its monetary targets rates held steady during the spring, interest diffor the current year. Senior Federal Reserve ferentials moved further in the dollar's favor. officials expressed concern about the implica- Meanwhile, concern deepened in some quartions of these developments for a sustained exters that rising interest rates were increasing pansion. Consequently, as the federal funds rate burdens on the heavily indebted developing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 695 countries. Some market participants were also tistics suggested that a significant deceleration of wary of the possibility that a meeting of Latin real growth in the United States had yet to occur. American debtor countries in Cartegena, Colom- At the same time, statistics on U.S. inflation bia, in July would lead to a polarization of the were much better than had been expected, imdebt negotiations. plying that interest rate differentials adjusted for It was in this context that one large American comparative price performance had become bank experienced funding difficulties in mid- even more favorable to dollar investments. May, following market rumors that it had sub- Moreover, the deficit-reduction legislation nearstantial undisclosed losses on its domestic loans. ing passage in the Congress contained a provi- Support efforts were organized by other large sion to remove a longstanding 30 percent withbanks and by the federal authorities. But market holding tax on interest earned on U.S. participants were unsure that the financial strains investments by nonresidents. This legislation, could be contained without modification of mon- which was subsequently enacted, prompted talk etary policy, and they took particular note of a that large new foreign inflows of capital would be temporary easing in the federal funds rate. Dur- attracted to the United States as certain invesing late May, rumors circulated that deposits tors who had been subject to the tax gained were being withdrawn from a few large U.S. greater access to U.S. markets. When the U.S. banks known to have sizable exposures in Latin bond and stock markets staged a strong rally late America. The dollar eased back as exchange in July, market participants therefore anticipated markets became somewhat unsettled over the substantial foreign interest. implications of these developments as well as the The dollar was bid up quite strongly at the end prospect of sizable amounts of funds being of July to reach its highs for the period under moved out of dollar assets. By May 24, rumors review. The dollar's net advance for the six had come to encompass American banks more months was greatest against the Swiss franc and generally, and the exchange markets became the pound sterling, at 10 percent and 8 percent extremely disorderly. The U.S. authorities con- respectively. Against most other major currenducted their only intervention operation of the cies the dollar rose on balance about 4 to 5 period that day, selling $135 million equivalent of percent, and in trade-weighted terms it increased German marks to counter the disorder. Trading 4V4 percent. conditions did improve thereafter, though the There were few changes in currency relationdollar continued to decline for several more ships among the other major currencies during days. the six months. Indeed, during the latter part of Early in June the dollar resumed its climb as the period when the dollar was rising, the currensome of the concerns of May began to dissipate. cies participating in the joint intervention ar- Market professionals came to realize that the rangements of the European Monetary System Federal Reserve had been able to provide the (EMS) traded without strain. The authorities in needed liquidity without compromising its mone- those countries whose currencies had previously tary targets. Some questions about the adequacy been under pressure were thereby able to rebuild of U.S. banks' accounting procedures were laid their official reserve positions as well as to move to rest as the rules on reporting loans to be "non- cautiously in the direction of easing domestic accruing" were clarified. Concern over the debt interest rates and relaxing exchange controls. As problem of the developing countries also eased a group, the major industrialized countries amid discussion of multiyear debt restructurings abroad sold dollars on balance during the six for countries demonstrating the greatest progress months in their intervention operations to supin external adjustment. Another positive factor port their own currencies. But these intervention was the emergence of a constructive attitude sales were more than offset by interest earnings from the Cartagena meeting. and acquisitions of currencies through foreign Later, the demand for dollars intensified as borrowings and other transactions, so that the U.S. capital markets regained their attraction to foreign currency reserves of the major countries foreign investors. A succession of economic sta- continued to grow. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 Federal Reserve Bulletin • September 1984 At the beginning of the six-month period, the Net profits or losses (-) only drawing outstanding on credit arrangements on U.S. Treasury and Federal Reserve of the U.S. monetary authorities was $10 million current foreign exchange operations1 drawn on December 29, 1983, by the Bank of Millions of dollars Jamaica against a U.S. Treasury temporary swap U.S. Treasury facility of $50 million. The Bank of Jamaica fully Federal repaid this amount on March 2 whereupon this PPeerriioodd Reserve Exchange General Stabilization account facility expired. Fund On March 30 the U.S. Treasury announced 1983:3 0 0 70.1 that it would participate in an arrangement relat- 1983:4 0 -204.8 0 1984:1 0 0 0 ed to the efforts of the government of Argentina 1984:2 -17.7 -21.4 0 July 1984 0 0 0 to put into place an economic adjustment program supported by the International Monetary Valuation profits and losses on Fund (IMF). The Treasury's participation con- outstanding assets and liabilities as of sisted of agreeing to extend temporary swap July 31, 1984 -1,084.0 -742.5 0 credits of up to $300 million to Argentina upon 1. Data are on a value-date basis. agreement on an economic adjustment program between Argentina and the IMF; Argentina agreed to repay any such drawings on the Trea- $111.8 million and $84.2 million respectively, on sury from proceeds of IMF drawings. This un- their foreign currency balances. They realized dertaking was part of a $500 million financing losses of $17.7 million and $21.4 million respecpackage that was used by Argentina to pay tively on all of their operations in the market. As certain interest arrears. The $500 million package of July 31, cumulative bookkeeping, or valuaconsisted of $300 million in credits extended to tion, losses on outstanding foreign currency bal- Argentina by the governments of Mexico, Vene- ances were $1,084.0 million for the Federal Rezuela, Brazil, and Colombia, to be repaid upon serve and $742.5 million for the ESF. (Valuation Argentina's drawing from the U.S. Treasury; gains and losses represent the increase or de- $100 million additional credits extended by the crease in the dollar value of outstanding currency eleven commercial banks in the working group assets and liabilities, using the end-of-period for Argentina; and $100 million provided from exchange rates as compared with rates of acqui- Argentina's resources. The U.S. commitment, sition.) These valuation losses reflect the fact originally made for a 30-day period, was extend- that the dollar has appreciated since the foreign ed at the end of April for another month and currencies were acquired. again at the end of May for an additional 15 days. The Treasury's commitment under this agreement lapsed on June 15. GERMAN MARK The Federal Reserve and the Treasury invest foreign currency balances acquired in the market Through February and early March, the German as a result of their foreign exchange operations in mark strengthened against the dollar in response a variety of instruments that yield market-related to substantial investment inflows, only to decline rates of return and that have a high degree of unevenly through July when these inflows subsequality and liquidity. Under the authority provid- quently slowed and then reversed. The capital ed by the Monetary Control Act of 1980, the inflows early in the period reflected optimism Federal Reserve had invested $1,424.2 million of that the difference in economic performance of its foreign currency resources in securities issued the United States and Germany would substanby foreign governments as of July 31. In addi- tially narrow. But by spring it was clear that the tion, the Treasury held the equivalent of $1,746.8 U.S. economy remained stronger than expected million in such securities as of the end of July. and predictions of more rapid expansion in Ger- In the period from February through July, the many were again disappointed. Federal Reserve and the Exchange Stabilization At the opening of the period, the near-term Fund (ESF) of the Treasury received earnings of outlook for the German economy and the Ger- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 697 man mark had become more buoyant. The pace differentials compared with dollar investments of economic activity had regained momentum widened a full percentage point. As the mark around the turn of the year, stimulated by a strengthened, the Bundesbank bought back some pickup of incoming foreign orders, renewed of the dollars sold in earlier intervention operaspending on plant and equipment, and a rebuild- tions. In addition, its reserve position in the EMS ing of inventories in anticipation of a progressive improved as other countries in that arrangement revival of demand. Inflation remained low and sold marks to slow the advance of the mark earlier concerns were receding that the rise in against their own currencies. During February import prices, reflecting last year's rise of the and March, Germany's foreign currency redollar against the mark, would generate general- serves rose $3.8 billion to $41.0 billion. ized price pressures. After the first week of March, however, the Meanwhile, the government had made even mark began a decline that was to continue, more progress than expected in reducing its except for one major interruption, through the fiscal deficit during 1983. The growth of central remainder of the period under review. As interbank money had dropped within the Bundes- est rates in the United States rose and figures bank's target range by the end of 1983 and was were released showing that the expected inremaining close to the lower limit of the central crease in inflation had not yet materialized, marbank's even narrower target of 4 to 6 percent for ket participants came to question whether large 1984. With the outlook for sustained, noninfla- investment flows into Germany would be sustionary growth thus improving, the capital mar- tained. Market participants doubted that the kets in Germany strengthened. Bundesbank would allow any corresponding rise Under these circumstances, the mark was the in German short-term interest rates, since the currency to benefit most from the shift in interna- domestic recovery had not yet led to a significant tional portfolio investment flows that developed reduction in unemployment. This perception early in the year. Investors were attracted by the deepened in April, when new data showed some prospect of favorable trends in both asset prices faltering of industrial activity. Thus the earlier and the mark's exchange rate, even though inter- positive evaluations of the relative attractiveness est differentials remained strongly negative by of mark-denominated investments eroded, and comparison with the dollar and with most curren- net portfolio inflows to Germany slowed markedcies within the European Monetary System. ly in March before turning negative in April. Long-term capital had begun to flow into Germa- Developments in the German labor market ny in January, reversing the capital outflows that also contributed to the mark's decline starting had been stimulated over much of the preceeding early in April. By mid-month it became clear that two years by the prospect of greater growth annual wage negotiations between the union and opportunities or higher yields abroad. The flows employers in Germany's important metal workcontinued in February, and reports of foreign ing industries were locked in a dispute over the buying in the rallying German bond and stock union's demand for a five-hour reduction in the markets received wide publicity. With Germa- standard workweek. Strikes began in May in two ny's current account expected to remain in sub- major regions, initiating the most serious work stantial surplus for the year, reports of these stoppage in German industry in many years. investment transactions helped to encourage the Exchange market participants viewed the strike view that the mark was embarked on a long- as important because of potential reductions in awaited upward trend. The mark's rise gained Germany's industrial production and current acadditional momentum from statements by public count performance for the year, as well as the officials to the effect that the dollar was increas- possible long-term effect on Germany's competiingly vulnerable to a sharp decline. The mark tiveness of any substantial concession to the rose against the dollar to DM 2.5210 by March 7, union's demands. Against this background, trad- 13 percent above its low of January and IV/2 ing in German marks became sensitive to news of percent from levels at the end of January. This the labor negotiations from April onward. rise occurred even though German interest yields In these circumstances, news that Germany for most maturities eased, and negative yield continued to register sizable trade account sur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 Federal Reserve Bulletin • September 1984 pluses, while U.S. monthly trade deficits mount- made clear it was not tightening monetary policy, ed to record levels, made little impression on the even though it raised the discount rate, effective exchange markets. The mark dropped through June 29, x/z percent to Axh percent. The central several psychologically important levels, and its bank acted at the same time to expand quotas of decline drew added impetus from selling by discount credit available to German banks, speccommercial entities and technically oriented ified that the change was designed merely to shift speculators. By May 10, the mark fell some 10 more of its liquidity provision from the Lombard percent from its March peak to DM 2.8010, less facility to the discount window, and kept its than 2 percent above the lowest level reached Lombard interest rate unchanged at 5.5 percent. during the previous January. These steps did not lead to any rise of German The mark's decline against the dollar stalled at money market interest rates, which remained that point as problems of the U.S. and interna- steady throughout June and July. tional banking systems became a dominant pre- In addition, the labor situation continued to occupation in exchange markets for a time. The influence the German currency during the summark was temporarily buoyed by the belief that mer. As the metalworkers' strike dragged on far the Federal Reserve would modify its monetary longer than most observers had initially predictstance to ease financial strains. At the same time, ed, forecasts of Germany's 1984 growth and signs of a modest firming in money market current account performance were revised interest rates in Germany were taken as presag- downward. Even after settlement was aning a possible move toward a tighter monetary nounced late in June, press commentary quespolicy by the Bundesbank. Thus, the mark rose tioned whether the upward momentum of the through much of May. German economy could be recaptured. There The exchange markets also became nervous in was also uncertainty about the likely effects of response to rumors of liquidity problems at sev- the agreement on productivity in the affected eral major U.S. banks with sizable loan expo- industries and the extent to which this agreement sures in developing countries or other problem might become a standard for settlements in other loans. On May 24, trading conditions became sectors of the German economy. extremely disorderly as these rumors began in- Thus, the mark became vulnerable to renewed discriminately to refer to American banks more investor enthusiasm for dollar-denominated asgenerally. Many traders attempted to withdraw sets. By late July, the German mark had dropped from dealing in the face of such rumors. As the below its previous low for the year, falling to DM German mark jumped some 1 Vi percent in less 2.9205 on July 31 before closing that day at DM than an hour, spreads between bid and asked 2.9180. At this point the mark was trading 4 quotes widened sharply and transactions became percent below its levels at the end of January. difficult to execute. In these circumstances the Within the EMS, the mark remained at the top of Desk entered the market to counter disorder, the narrow band, but its margin over the other selling $135 million equivalent of German marks. currencies had been considerably reduced. As These marks were drawn in equal proportion pressures against the other EMS currencies subfrom the foreign currency balances of the U.S. sided, some participating central banks pur- Treasury and the Federal Reserve. After the chased marks in the market to add to their own operation, trading became more normal. The reserves. mark continued its rise at a more subdued pace Meanwhile, German foreign exchange rethrough the first days of June, reaching DM serves dropped some $2.5 billion equivalent after 2.6600 on June 5. March to $38.4 billion. The change partly reflect- The mark then resumed its decline against the ed dollar sales by the Bundesbank to slow the dollar as new estimates indicated that U.S. decline of its currency against the dollar, as well growth still overshadowed Germany's growth as some reduction in Germany's creditor posiperformance and as further increases in U.S. tion within the European Monetary System reinterest rates widened the rate differentials that sulting from repayment of mark debt by partner were adverse to the mark. The Bundesbank countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 699 JAPANESE YEN raised the ceiling for net new domestic lending by Japanese banks, as the domestic demand for As the period opened, the Japanese yen was funds continued to grow apace. Although the trading near record levels against European cur- central bank's discount rate remained unchanged rencies, while showing somewhat less buoyancy during the period, the banks lowered the longagainst the dollar. By comparison with Europe, term prime rate from 8.2 percent to 7.9 percent at Japan's economic recovery was moving ahead the end of March. more briskly. Its current account surplus, ex- From March onward, interest differentials fapected to exceed the previous year's $21 billion, voring dollar over yen assets widened steadily was likely to far surpass any other country's because short-term interest rates in Japan resurplus. These factors had attracted some invest- mained little changed or even declined slightly. ment from abroad. But, overall, inflows to Japan At first, the yen held steady against the dollar, through the current account and through nonresi- and thereby regained some ground against Eurodent investments were more than offset by out- pean currencies, as optimism about the Japanese flows of residents' long-term capital—outflows economy was reinforced by fresh evidence of that slowed the yen's advance against the dollar. strengthening growth and a widening current To some extent these outflows were attracted by account surplus. Domestic demand picked up the relatively high interest rates and even more and business confidence improved. With the rapid growth in the United States. In part they prospect of rising profits for Japanese compareflected continuing diversification by Japanese nies, prices on the Tokyo stock exchange were investors of their rapidly growing financial as- still climbing and reports circulated of increased sets. In addition, discussion about liberalizing foreign demand for Japanese equities. the Japanese capital market, internationalizing But the yen started to decline against the dollar the yen, and improving access of foreign firms to late in April. Soon afterward it began falling the Japanese capital market added to uncertain- against other currencies as well, so that the yen ties about the immediate outlook for the dollar- did not return to the peak levels against the mark yen exchange rate. registered earlier in the year. Late in April the During February and early March, the yen was Tokyo stock market lost its upward momentum, slow to benefit from the shift in sentiment against and stock prices started to erase some of the 11 the dollar. In contrast to the mark, the yen percent gain of the first four months of the year. remained steady against the dollar until early Talk of capital outflows then intensified. March 2. Then it rose abruptly as bidding ap- In addition, attention had been directed to new peared from both commercial and professional discussions between the Japanese Ministry of sources. The yen's advance quickened after mar- Finance and the U.S. Treasury about liberalizing ket participants sensed that the yen might be the Japanese capital market and internationalizcatching up with the earlier rise of the mark. By ing the yen. As one move toward liberalization, March 7, the currency had risen some 6 percent the Japanese authorities eliminated, effective to ¥220.00 against the dollar, its high for the April 1, the requirement that corporations identiperiod. fy underlying commercial transactions before After this rise, calls on the Bank of Japan to entering a forward contract, and also made other cut the discount rate were heard from diverse changes in the administration of the foreign exquarters. The central bank, however, rejected change market during the spring. On May 29, the these suggestions, arguing that the yen's recov- Japanese Minister of Finance and the U.S. Secery was not yet sufficiently well established and retary of the Treasury released a report containthat domestic as well as international develop- ing a broad range of policy changes expected to ments should be taken into account. As it was, affect the exchange rate over time. (See "Summonetary policy was generally viewed as accom- mary of Report on Yen/Dollar Exchange Rates," modative, with the Bank of Japan forecasting on the following page.) The report stated that the monetary growth to continue at about an 8 measures "... will help enable the yen to reflect percent annual rate. Also, the Bank of Japan more fully its underlying strength." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 Federal Reserve Bulletin • September 1984 Summary of Report on Yen/Dollar Exchange Rate Issues The Japanese Minister of Finance and the U.S. Secretary of the outside Japan. On the lending side, Japanese and non-Japanese banks Treasury released on May 29 a report containing a broad range of will be free to extend Euroyen loans to nonresidents of Japan. policy changes. The report contained announcements by Japanese Substantial changes in domestic financial market policies were also authorities of policy change in three broad areas: the Euro yen market, announced by the Ministry of Finance. These include the removal of the operation of Japan's domestic capital market, and the access of nonprudential restrictions on overseas yen lending from Japan; the foreign financial institutions to the Japanese capital market. In the elimination of limits on oversold spot foreign exchange positions—so- Euroyen market, perhaps the most important area for the internation- called swap limits; relaxation of regulations on domestic certificates of alization of the yen, the authorities announced the basic commitment deposit; permitting banks to sell new types of large-denomination and decisions necessary to allow for the development of Euroyen deposit instruments with market-determined interest rates; a plan for bond and banking markets, where non-Japanese can freely invest in or establishment of a yen-denominated bankers acceptance market in borrow a range of yen-denominated instruments. Japan; and allowing qualified Japanese branches of foreign banks to Specifically, in the Euroyen bond market, the announcement pro- trade Japanese government securities in the secondary market. vided for the first time for the issue by non-Japanese corporations of In the area of access by foreign financial institutions to the Japanese yen-denominated bonds. Foreign issuers will face no restrictions on market, foreign banks will for the first time be allowed to engage in the the number or size of issues and will not be required to use the trust banking business; the Tokyo Stock Exchange has begun to study Samurai market (Japanese domestic market for foreign bonds) as a ways to provide membership opportunities to foreign firms; and the prerequisite. In the Euroyen banking market, the announcements Japanese authorities expressed their commitment to permit greater include authorization for foreign and Japanese banks to issue short- participation of foreign institutions in discussions pertaining to develterm negotiable Euroyen certificates of deposit from their offices opment of and in the implementation of financial policies. During the remainder of the period, large-scale appreciation of the franc if doing so would reliquidation of nonresidents' holdings of Japanese quire them to deviate from their monetary policy securities and heavy Japanese investment in for- objective of controlling inflation. Accordingly, eign securities persisted. Overall, long-term capi- exchange market participants had established tal outflows jumped well in excess of the under- positions in Swiss francs against marks and, lying current account surplus—to a record $4.4 thereby, had helped the franc to hold up better billion in April and to more than $6 billion by against the dollar just before the period. June. Under these circumstances, the yen steadi- During February and early March, however, ly declined against the dollar, easing to a low for the Swiss franc did not benefit as much as the the period of ¥247.3 on July 23. Trading at the mark from the shift in investor preferences then close of ¥246.9, the yen had declined 5 percent taking place, and the franc failed to keep up with against the dollar and IV2 percent against the the rise of EMS currencies against the dollar. mark from levels at the end of January. The Bank The outlook for economic growth had not imof Japan intervened during the second half of the proved as much as it had for Germany and, period to moderate the downward pressure on though inflation was running at a comparable the yen at times when trading became especially rate, interest rates in Switzerland remained more volatile. But over the six-month period, Japan's than 2 percentage points lower than those on foreign exchange reserves showed little change, mark assets. Encouraged both by the interest since declines due to intervention were offset by rate differentials and by an easing of official interest receipts. regulations at the beginning of 1984, foreign bond offerings in the Swiss market picked up. The conversion of these borrowings into foreign cur- Swiss FRANC rencies put pressure on the Swiss franc. At the same time, market professionals moved to re- At the beginning of the period under review, the verse positions in Swiss francs against marks Swiss franc was trading steadily around established earlier. Thus, the Swiss franc, while SF2.2455 in terms of the dollar, slightly above climbing IVA percent against the dollar to its high seven-year lows reached in early January. for the period of SF2.0940 on March 7, fell nearly Against the mark, however, the franc was strong 4 percent to nearly SF0.83 in terms of the German mark. by historical standards and near the SF0.80 level, which, in the past, had prompted official concern From March onward, the Swiss franc moved over the competitiveness of Swiss exports. Yet, more in line with other European currencies as it this time, market participants concluded that the fell against the dollar. Swiss interest rates rose authorities would not act to prevent a further somewhat. But, with U.S. rates also rising, ad- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 701 verse interest differentials compared with dollar was frequently influenced by developments in assets widened to more than 7 percentage points the oil market, as well as by changes in yields on for the three-month maturity. Capital outflows short-term investments in sterling relative to therefore continued, reflecting borrowings by those in other currencies—especially the dollar. Japanese corporations in particular. Thus the During February, both interest rate and oil Swiss franc declined against the dollar to market factors tended to favor sterling. The SF2.4760 by the end of July, a fall of 9Vi percent government had continued to aim at moderately for the six-month period. Against the mark, the restrictive fiscal and monetary targets, but both franc dropped about 3 percent to around SF0.85 public sector borrowing and monetary growth in the final two months of the period, bringing the had been running somewhat over their targets for decline for the six-month interval to 6 percent. the fiscal year. At least until these economic By late June, settlement of a major strike in indicators had come closer to their intended Germany eliminated a factor that had tended to ranges, market participants expected the pound favor the Swiss franc relative to the mark. In would be supported by relatively attractive addition, the Swiss franc did not benefit as did short-term interest rates. British interest rates the mark from large-scale central bank interven- were substantially higher than those in most tion purchases. major markets and close to parity with those The Swiss authorities did not intervene during available for U.S. dollar assets. In addition, the period. Fluctuations in Switzerland's foreign intensifying military conflict in the Persian Gulf currency reserves reflected foreign currency threatened at times to interrupt oil supplies, and swap operations to adjust liquidity in the Swiss the resulting upward pressure on crude oil prices banking system. was expected to improve Britain's current account position. Thus, sterling rose some 6V2 percent in terms of the dollar during the month to a high of $1.4955 on February 29. The currency STERLING was not, however, identified in market talk as Between February and July, sterling extended one of those benefiting from reported shifts in the decline that had taken place with only few portfolio capital out of dollar investments. Overinterruptions since early 1981. After staging a all, the British currency rose nearly 2 percent on short-lived advance as the dollar generally eased, average to close the month at 83.3 in terms of the in February and early March sterling dropped Bank of England's trade-weighted index, its during the period IVi percent against the dollar highest level during the period. At the same time, and 4 percent according to the Bank of England's Britain's foreign currency reserves rose $0.6 trade-weighted index. During the period, Brit- billion to $9.1 billion. ain's economy was showing distinct signs of After the end of February, sterling began to improvement, but several questions remained decline against the dollar and other currencies. about the immediate outlook. Economic expan- Unemployment had risen steeply in January and sion was far more established in the United February, and there were fears—borne out in Kingdom than in most other European countries, early April—that industrial production would but output growth was not yet sufficient to turn down as a result of a miners' strike. Expecreverse a rise in unemployment. Inflation had tations grew that the British authorities would be stabilized at about 5 percent, but prices and cost under pressure to lower interest rates. Then, pressures were even more subdued in some other publication of statistics showing that sterling M3 countries so that Britain's competitive position had dropped within its target range in the first failed to show further improvement. The three- two months of the year led market participants to year weakening in Britain's non-oil trade posi- believe that the authorities were in a position to tion slowed as demand began to pick up in major let interest rates ease in order to stem the rise in export markets, but foreign exchange market unemployment. participants continued to perceive Britain's over- Sterling's decline was interrupted briefly in the all external position to be vulnerable to further aftermath of the government's announcement on declines in oil prices. Thus, trading in the pound March 13 of its budget and monetary targets for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 Federal Reserve Bulletin • September 1984 1984-85. Market participants generally praised substantially. This view was consistent with the the budget, which projected a decline in the perception that, at current exchange rates, propublic sector borrowing target and a reduced rate duction costs in the United Kingdom were still of monetary expansion, along with some corpo- high relative to those on the Continent, and that rate tax reductions and other tax support for much of the growth in consumption during this sterling as the period went on. Even with re- recovery had been met by imports. It persisted forms, sterling rose as foreign buying of British even after the Bank of England endorsed a rise of bonds and equities reportedly contributed to VI percentage point in short-term market interest strong rallies in London's capital markets. rates in early May. It was reinforced when, as But the rise in the exchange rate was soon the Bank of England announced a technical erased when market attention reverted to the adjustment of the structure of its dealing rates in developing pattern of interest rates. The Bank of late June, the central bank indicated that there England endorsed a decline of VI percentage was no need on monetary grounds for a general point in the general level of short-term interest increase in interest rates. rates by cutting its dealing rates in two steps Under these conditions, which were aggravataround mid-March. Combined with the rise of ed by a national dock strike, sterling's drop dollar interest rates then under way, this caused accelerated in early July, until the pound hit an short-term differentials vis-a-vis the dollar to all-time low of $1.2975 and an eight-year low in move some 2 percentage points and to become effective terms. This drop quickly led to a sharp decidedly negative for sterling by late March. rise in interest rates in the London market that The world oil market situation also provided ended with a cumulative 23/4-percentage point less support for sterling as the period went on. increase in the Bank of England's money market Even with the continued fighting in the Persian dealing rates and the major banks' base lending Gulf, market participants became less convinced rates. These increases restored sterling's shortof the potential for higher oil prices in light of term interest rate advantage relative to the dolapparently ample supplies. In these circum- lar. Subsequently, helped by settlement of the stances, an occasional flareup of Middle East dock strike, sterling steadied to fluctuate along tensions no longer caused the same surge of with other currencies against the dollar. Alsterling buying as before, and market profession- though it closed July at a new low against the als, who as a group had been willing to hold long dollar of $1.2970, it had recovered nearly 2 sterling positions for a brief period in February, percent in effective terms. During the five reestablished short positions. months to the end of July, Britain's foreign Domestic labor problems also contributed to currency reserves declined almost continuously, sterling's weakness at times. The strike by Brit- dropping $2.3 billion to $15.4 billion by the end of ain's coal miners was not a particularly serious the period. concern in the exchange markets at its inception in March, in view of the limited support given the miners' position by unions in other industries EUROPEAN MONETARY SYSTEM and the ample coal stocks available to supply the country's needs. But the strike began to be During the period under review, the alignment of viewed more negatively as time went on. Sterling central exchange rates within the European exchange rates thus became more sensitive to Monetary System remained relatively free from news of the miners' strike and other labor dis- strain. Economic divergencies among the participutes later in the period. pating countries were reduced as all seven coun- During May and June, negative interest differ- tries continued to implement policies aimed at entials relative to the dollar widened further as reducing fiscal deficits, strengthening current U.S. interest rates rose. Market participants account positions, and holding down inflation. became increasingly convinced that, if faced with Increases in wages and consumer prices had the choice, British authorities would let sterling decelerated during 1983 in France, Italy, Dendepreciate rather than put further economic ex- mark, Belgium, and Ireland, bringing inflation in pansion at risk by raising domestic interest rates these countries somewhat closer to—although Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 703 still much higher than—the low rates prevailing and inflows into the German mark subsided. The in Germany and the Netherlands. The large mark eased against its partner currencies and, at current account deficits of France, Italy, Bel- times, the Dutch guilder alternated with the mark gium, Denmark, and Ireland had all been sub- at the top of the narrow band. In addition, the stantially cut—and in the case of Italy, re- spread between the topmost currency and the versed—while the German and Dutch surpluses Belgian franc at the bottom narrowed to less than remained rather stable by comparison. 1 percent by the end of July. The joint float came under some pressure in With the waning of tensions in the EMS, the the early part of the period as the dollar fell from French and Italian central banks were able to its January highs. Flows out of dollar assets were purchase substantial amounts of foreign currenattracted to the German mark to a far greater cies in the market to rebuild their reserve posiextent than to any other EMS currencies—re- tions. Over the six-month period as a whole, flecting sanguine assessments of the investment foreign exchange reserves of these two countries climate in Germany as well as the wider opportu- rose on balance—by $2.4 billion equivalent for nities for inflows afforded by its relatively open France and by $0.6 billion equivalent for Italy— financial system. Thus, by the beginning of Feb- to close at $20.1 billion and $18.5 billion respecruary, the mark was trading at or near its upper tively. The Belgian central bank was able to limit against the Belgian franc, after having cease its intervention sales of foreign currency quickly risen to the top of the EMS narrow band. and to use the proceeds of further external bor- All of the other EMS currencies were also clus- rowings to reduce its liabilities to the EMCF. tered near the mark at the top of the narrow Although Belgium's foreign currency reserves band, except for the Italian lira, which traded declined $0.5 billion during the six months to about V/i percent above the band within the $3.1 billion by the end of July, the decline was wider limits established for their currency. considerably smaller than its repayments of in- The German mark continued to strengthen debtedness to the EMCF over the six-month through early March against all other EMS cur- period. rencies. The Belgian franc became pinned at its The authorities of France, Italy, and Belgium lower EMS limit against the mark. The Belgian also took advantage of the easing of exchangecentral bank countered speculative pressure market pressures against their currencies to ease against its currency partly by raising its official interest rates or, in the case of the first two lending rates 1 percentage point, effective Febru- countries, to ease foreign exchange controls. ary 16. The currencies that had shared the top of Money market interest rates in the three counthe narrow EMS band with the mark at the tries declined Vi to 1 percentage point in the last beginning of the period dispersed through the top four months of the period. Italy's Trade Ministry half of the band, and the Italian lira moved down reduced the extent to which Italian exporters are closer to the narrow band. required to conduct their trade financing in for- Intervention support was provided to several eign currencies. In France, one of the first officurrencies. The central banks of France, Bel- cial actions of the new cabinet that took power in gium, and Ireland financed the bulk of their July was to relax restrictions on the use of credit official currency sales from the proceeds of ex- cards abroad, an action that had been part of the ternal borrowings or other sources so that their March 1983 austerity program. foreign exchange reserves were little changed or By the end of July, the EMS currencies had even rose during the two months. Belgium also fallen between 13 and 16 percent from their drew on the very short-term facility available March highs against the dollar, but were only 2 to through the European Monetary Cooperation 4 percent lower over the six-month period as a Fund (EMCF). In the case of Italy, however, whole. Nevertheless they closed at levels that official sales of marks and dollars were partly represented, in most cases, all-time lows against reflected in a drop of foreign currency reserves of the dollar. These wide movements against the $0.7 billion for February and March. dollar contrasted with their steadiness against one another. By the end of the period, the Pressures within the float ebbed after the first exchange rate structure that had been adopted in week of March, as the dollar began rising again Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 Federal Reserve Bulletin • September 1984 March 1983 had lasted longer than any other in U.S. oil companies would be sold and the prothe six-year history of the EMS. ceeds converted into U.S. dollars to finance large takeover bids involving the parents. Commercial leads and lags shifted against the Canadi- CANADIAN DOLLAR an dollar. At the same time, market professionals sought to establish or increase short positions in By the opening of the six-month period under the currency adding further to the pressure. review, the Canadian dollar had settled into a Against this background, the Canadian dollar trading range around Can.$1,245 ($0,803), draw- dropped off sharply in several waves of selling ing support from surpluses on Canada's trade from March through July. The pressures were and current accounts. But sentiment toward the particularly intense in June and early July, when Canadian dollar deteriorated early in February a change in the leadership of the governing party when published figures revealed that, despite an and the prospect of national elections in Septemimpressive recovery during 1983, the Canadian ber stimulated renewed debate on interest and economy had not yet returned to satisfactory exchange rate policy. During this episode the levels of production, and employment and in- Canadian currency dropped to an all-time low of vestment remained sluggish. Looking ahead, ob- Can.$1.3368 ($0.7481). The Bank of Canada inservers questioned whether exports, a major tervened in the exchanges to resist this decline. contributor to Canada's growth last year, would Meanwhile, Canadian money market interest remain so buoyant if the economic expansion in rates ratcheted upward and the Bank of Canada's the United States were to moderate. They won- bank rate rose to a peak of 13.26 percent in the dered also if credit demands would be as strong middle of July, even after U.S. money market in Canada as they appeared to be in the United rates had started to ease. These movements States. Thus, market participants focused on the pushed interest rates on Canadian dollar assets monetary authorities' potential policy conflict significantly above those on U.S. dollar assets between lending support to further economic and buoyed the currency. Market sentiment was growth and incurring the inflationary conse- also encouraged by the waning of public debate quences of a weakening in the exchange rate. over exchange rate and interest rate policy. As Against this background, the currency showed market participants' earlier concerns that the vulnerability to selling pressure when Canadian currency would depreciate lifted, the Canadian short-term interest rates slipped below compara- dollar recovered some of its earlier decline. It ble U.S. rates. closed the period at Can.$1.3094, down 5 percent Public officials denied that they would wel- on balance against the dollar over the period. come a sharp drop in the Canadian dollar, and The Canadian authorities drew heavily on their the central bank's Annual Report pointed to the reserve position to finance intervention to supdangers of currency depreciation. The central port the Canadian dollar from February to June, bank asserted that in the event of sharp down- but they were able to buy back reserves in July. ward movements of the Canadian dollar, "the Their foreign currency reserves were supplesuccessful pursuit in Canada of increasing price mented as needed by borrowings of U.S. dollars stability requires that Canadian policy try to on credit lines with Canadian and foreign banks, moderate the exchange rate movements and to totaling $1.4 billion, as well as by net borrowings offset their inflationary effects." But, for several in other foreign currencies equivalent to $0.6 months, market participants perceived the Cana- billion. Canada's foreign currency reserves nevdian authorities to be reluctant to allow interest ertheless declined from the end of January to the rates to rise along with U.S. rates. end of April, falling $1.1 billion to $1.7 billion The Canadian currency was also subjected to before returning to $2.7 billion by the close of the other pressures during the spring. Market partici- period. pants thought that Canadian subsidiaries of some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

705 Industrial Production Released for publication September 14 In market groupings, output of consumer goods declined 0.4 percent in August, largely Industrial production increased an estimated 0.2 reflecting a decline in assemblies of autos and percent in August following rises of 0.9 percent lightweight trucks. Auto assemblies declined to in both June and July. Output growth remained an annual rate of 7.7 million units, compared vigorous in equipment industries, but production with the July rate of 7.9 million units; tight of autos and steel was down. At 166.2 percent of supply of parts of adequate quality reportedly the 1967 average, the August index was 9.5 limited assemblies in August. Output of goods percent higher than a year earlier. for the home, including appliances, and of non- 1967=100 1967 = 100 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: August. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 Federal Reserve Bulletin • September 1984 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1984 1984 AAAuuuggg... 111999888333 tttooo AAAuuuggg... July Aug. Apr. May June July Aug. 111999888444 Major market groupings Total industrial production 165.8 166.2 .8 .4 .9 .9 .2 9.5 Products, total 166.6 167.0 .9 .5 1.1 .9 .2 9.0 Final products 164.7 165.0 1.0 .6 1.2 1.0 .2 9.5 Consumer goods .... 163.9 163.2 .7 .2 .6 .7 -.4 4.4 Durable 164.8 163.2 -.6 -.5 1.2 .9 -1.0 5.8 Nondurable 163.6 163.3 1.3 .4 .4 .7 -.2 3.9 Business equipment . 184.1 186.1 .8 1.7 2.4 1.8 1.1 18.8 Defense and space .. 135.1 136.1 2.4 -.1 .7 .8 .7 13.2 Intermediate products . 173.7 174.2 .5 .4 .9 .3 .3 7.4 Construction supplies 161.4 161.7 .3 -.1 .9 .3 .2 8.5 Materials 164.4 164.9 .7 .3 .6 .9 .3 10.2 Major industry groupings Manufacturing 167.3 167.6 .8 .5 .9 1.0 .2 9.7 Durable 157.3 157.6 .8 .5 1.0 1.5 .2 13.5 Nondurable 181.8 182.2 .8 .4 .6 .5 .2 5.4 Mining 129.5 129.1 -.4 1.4 1.4 2.1 -.3 11.2 Utilities 182.3 183.3 1.5 -.2 1.2 -1.1 .5 2.2 NOTE. Indexes are seasonally adjusted. durable consumer goods declined slightly in Au- er, declines in steel reduced the production of gust. Production of equipment—for both busi- basic metals an estimated 3 percent. ness and defense—continued to advance In industry groupings, manufacturing output strongly, with sharp gains in the output of transit, was up 0.2 percent in August. Gains in machincommercial, and manufacturing equipment. Out- ery industries, fabricated metals, and instruput of construction and business supplies edged ments were largely offset by reduced production up. of metals, motor vehicles, and some other indus- Output of durable materials rose 0.4 percent, tries. Mining output was reduced 0.3 percent due production of nondurable materials increased 0.5 in part to a decline in coal production from the percent, and energy materials edged down 0.2 very high July level. Production by utilities inpercent in August. Among durable materials, creased 0.5 percent. equipment parts again increased sharply; howev- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

707 Announcements STATEMENT ON PRICED SERVICES THE FEDERAL RESERVE IN THE PAYMENT SYSTEM The Federal Reserve Board has approved the This paper defines the mission and role of the Federal two accompanying policy papers regarding the Reserve in the payment system. The objective of the Federal Reserve System's role in the nation's paper is to clarify the Federal Reserve's purpose and payment mechanism and the System's policies role in the payment system in order to encourage and procedures designed to carry out provisions closer cooperation among all participants in improving of the Monetary Control Act with respect to the payment system and to facilitate the business services to depository institutions. planning of users and providers of payment mecha- One paper, entitled "The Federal Reserve in nism services. The paper also outlines the procedure the Payment System," sets forth the rationale for the Federal Reserve will use in reviewing its services. the Federal Reserve's participation in the pay- In summary, the mission of the Federal Reserve in ment mechanism, describes the System's proce- providing payment services is to promote the integrity dures for evaluating Federal Reserve priced and efficiency of the payment mechanism and to ensure the provision of payment services to all deposiservices to depository institutions, and states the tory institutions on an equitable basis. Given the size, System's objectives, including cost recovery, for speed, and interdependencies of payments, this misthe pricing of such services as directed by the sion is, and will likely continue to be, even more Monetary Control Act. important than it was when the Federal Reserve was The other paper, "Standards Related to Priced established in 1913. Services Activities of the Federal Reserve Banks," is concerned with System safeguards Role of the Federal Reserve for avoiding any internal conflict of interest between the exercise of the Federal Reserve's Background. For 70 years, active involvement by the responsibilities for the provision of priced ser- Federal Reserve in payment processing has been an vices to depository institutions and its other integral part of the development of the nation's financial system. The Congress, responding in part to the principal responsibilities in the fields of monebreakdown of the check collection system in the early tary policy, bank supervision, and lending to 1900s, established the Federal Reserve in 1913. At that depository institutions. time the Congress envisioned that the Federal Reserve The primary responsibility for assuring that would play a dual role as an operator and as a regulator the standards are applied is entrusted to the of the payment mechanism. The Congress has, as management of each Reserve Bank. The Board recently as 1980, reaffirmed its commitment to this exercises oversight over standards for provision dual role for the Federal Reserve. of priced services through review and approval The Federal Reserve has a wide-ranging role in the by the Board of changes in the level of pricing payment system. Reserve Banks process about 35 and services, and through frequent on-site re- percent of the checks written in this country and views by Board staff of Reserve Bank activities. provide a nationwide network for the collection of In addition, the Board specified in approving its items ineligible for processing through normal check collection channels, such as matured coupons, bonds, policy statement that the Board member serving and bankers acceptances. The Federal Reserve assistas chairman of the Board's Federal Reserve ed in developing the automated clearinghouse (ACH) Bank Activities Committee is responsible for system and now provides a nationwide electronic overseeing investigation and responses to com- ACH network. Depository institutions transfer billions plaints in this area. Vice Chairman Martin is the of dollars in payments each day over the Federal current chairman of this committee and inquiries Reserve's nationwide wire transfer system (Fedwire). may be directed to his attention. The Federal Reserve also operates a book-entry secu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 Federal Reserve Bulletin • September 1984 rities service for the safekeeping and transfer of U.S. The value of funds transferred is so large that no government and agency securities. Finally, through its private concern is perceived as able adequately to nationwide network of account relationships, the Fed- ensure the integrity and reliability of the system. The eral Reserve provides net settlement for a variety of Federal Reserve's direct and ongoing participation in clearing arrangements. the operation of the payment mechanism enhances the This participatory role has served the United States integrity and reliability of the system. For example, well—contributing directly and indirectly to wide- the Federal Reserve's final irrevocable Fedwire transspread public confidence in a payment system that is fer service reduces the risk that failure of one instituquick, sure, and efficient. The Federal Reserve's par- tion could be rapidly transmitted to other institutions. ticipatory role is well-suited to the structure of the The current effort to control intraday risk on large- U.S. financial industry. This country has a highly dollar payment networks is another example of a fractionalized banking system spread over wide areas Federal Reserve initiative, in conjunction with the with different types of institutions—commercial private sector, to enhance the integrity of the payment banks, savings institutions, and credit unions—that system. have different payments needs. No one private banking organization holds more than 4 percent of total Efficiency of the Payment System deposits or offers deposit services in all regions. If and when generalized structural changes such as Federal Reserve involvement in the payment system interstate banking are authorized, the underlying pub- promotes efficiency for a variety of reasons. lic policy rationale for a Federal Reserve operational The Federal Reserve has a public interest motivapresence in the payment mechanism will continue to tion in seeking to stimulate improvements in the be as important a consideration as it is today. Then, as efficiency of the payment mechanism. The Federal now, the Federal Reserve can be expected to bring to Reserve has worked closely with other providers of payment markets an overall concern for safety and payment mechanism services to develop and utilize soundness, promotion of operating efficiency, and advancements in technology and procedures. Because equitable access. Indeed, those considerations relating of its day-to-day operating presence in the payment to integrity, efficiency, and access to the payment mechanism, it has the know-how to contribute to such mechanism will remain at the core of the Federal advancements as well as the ability to help promote Reserve's role and responsibilities regarding the oper- their implementation. This is particularly true in the ation of the payment mechanism. case of significant payment mechanism advancements that involve substantial resources, such as the ACH. Integrity of the Payment System Federal Reserve involvement may also be particularly appropriate for advancements that require widespread A reliable payment system is crucial to the economic cooperation among depository institutions (for examgrowth and stability of the nation. The smooth func- ple, introduction and implementation of MICR encodtioning of markets for virtually every good and service ing of checks). Moreover, Federal Reserve involveis dependent upon the smooth functioning of banking ment as a neutral and trusted intermediary may and financial markets, which in turn is dependent upon facilitate acceptance of innovations that improve the the integrity of the nation's payment mechanism. efficiency of the payment mechanism. Additional effi- History tells us—all too vividly—that fragility of a ciencies result from the scope of the Federal Reserve's country's payment system can precipitate or intensify participation in the payment mechanism. a general economic crisis. The breakdown of the As the Congress anticipated in the Monetary Conpayment machinery in the United States during the trol Act of 1980, competition between the Federal panic of 1907—which helped to precipitate the cre- Reserve and other providers of payment services has ation of the Federal Reserve System—is a case in resulted in a more efficient payment system. Both the point. More recently, the 1974 failure of a relatively Federal Reserve and other service suppliers have been small German financial institution, Bankhouse I.D., prompted by competition during the last three years to Herstatt, and the consequent uncertainty regarding trim the cost of processing payments and to improve payments through private clearing networks, tempo- the quality of the services offered. rarily caused substantial disruption in the U.S. pay- It is recognized that further gains in payment effiment system. This clearly demonstrated that financial ciency are most likely to come from the application of failures can have a dramatic rippling effect, via the advances in electronic technology. These gains will payment system, to financial institutions in all parts of become more widespread as the new technology bethe world. comes available to all depository institutions regard- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 709 less of size or location. An impediment to the conver- and other government agencies at lower costs than sion of paper-based payments to electronic payments, would be possible if there were no opportunities for however, is the significant float advantage enjoyed by the Federal Reserve also to offer these services to some initiators of paper-based payments. To eliminate depository institutions. part of this advantage and thus help spur the shift to electronic payments, the Federal Reserve has during Criteria for Federal Reserve Services the past two years accelerated the collection of checks, including checks drawn on institutions at In offering payment services, the Federal Reserve relatively remote locations. As a result of these efforts, must satisfy the cost recovery objective of the Monemore than $3 billion in checks daily are now being tary Control Act: in the long run, aggregate revenues collected and paid one day quicker than was the case should match costs. The Federal Reserve is currently previously. achieving this objective. In addition to the aggregate cost recovery objective Provision of Payment Services specified in the Monetary Control Act, the pricing to All Depository Institutions principles adopted by the Board of Governors in 1980 added the more stringent objective of full cost recov- Federal Reserve payment services are available to all ery (including all operating and float costs and imputed depository institutions, including smaller institutions taxes and return on capital) for each service line.1 in remote locations that other providers might not Based on more than two years of experience with the choose to serve. Under the Monetary Control Act, in provision of priced services, this internal objective of making payment services available to depository insti- cost recovery at each service line has been elaborated tutions, the Federal Reserve is to give due regard to to provide that revenues for each service line must the provision of an adequate level of services nation- cover all operating costs, float costs, and certain wide. Since implementation of the act, the Reserve imputed costs such as the cost of interest on short- and Banks have opened access to Federal Reserve ser- long-term debt, as well as to make some contribution vices to nonmember banks, mutual savings banks, to the pre-tax return on equity. Thus, each service line savings and loan associations, and credit unions. Fur- must be at least marginally "profitable" and all service thermore, the Reserve Banks currently handle paper lines combined must, in the aggregate, cover all costs, and electronic items that are destined for more than float costs, and the overall private sector adjustment 20,000 depository institutions. factor (PSAF). At present, check collection, cash The Federal Reserve also stands ready to provide services, wire transfer and net settlement, and the payment mechanism services to troubled depository book-entry securities service lines are meeting this institutions that other providers of payment services secondary cost recovery objective. The commercial may not serve because of the risks involved. This ACH service line is also meeting this objective, after helps to ensure that the inability of a depository taking into account the planned subsidy. Only the institution to make or process payments will not definitive securities safekeeping and noncash collectrigger its insolvency and that the institution's prob- tion service line is not presently meeting this objeclems can be resolved in an orderly fashion with a tive. minimum of disruptive effects. Federal Reserve objectives are established in terms of cost recovery rather than targeted volume. Circum- Fiscal Agency Functions stances might materialize that could jeopardize the Federal Reserve's ability to meet its cost recovery In addition to the payment services provided to depos- objectives. Such circumstances include changing techitory institutions, the Federal Reserve, as fiscal agent, nology and consolidation of depository institutions. If provides a variety of services on behalf of the U.S. a service that is experiencing such developments can Treasury and other government agencies. These ser- be made more responsive to the market, it would vices include the creation, safekeeping, and transfer of continue to be offered. If it becomes clear, however, book-entry records evidencing ownership of the public that the service simply cannot be expected to meet debt and the processing of government payments. cost recovery objectives, the Federal Reserve would To the extent that the facilities and expertise re- reassess the appropriateness of continuing to provide quired to provide these services can be used to pro- the service after taking into account its other objecduce other similar services for depository institutions, production efficiencies result. Aiso, paper and electronic payment services are supplied to the Treasury 1. See the appendix for details on calculation of costs and fees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 Federal Reserve Bulletin • September 1984 tives, including the requirement of providing equitable payment mechanism service to ensure that an adeaccess and an adequate level of services nationwide. quate level of the service is provided nationwide or to For example, several Reserve Banks have stopped avoid undue delay in the development and implemenoffering the cash transportation service in areas where tation of the service. an adequate level of this service is provided by the The Federal Reserve recognizes that its unique private sector. position carries with it unique responsibilities, includ- Failure to meet cost recovery objectives may also ing a willingness to cooperate with other providers in result from an aggressive pricing policy pursued by improving the payment mechanism and a fundamental other service providers. Because the Monetary Con- commitment to competitive fairness. These unique trol Act directs the Federal Reserve to give due regard responsibilities must, in the final analysis, be viewed to competitive factors, a decision would have to be as an extension of the Federal Reserve's underlying made whether the public benefits of continuing to offer responsibility for preserving the safety and soundness the service justify the shortfall. The Federal Reserve of, and improving, the payment system. might also continue to provide a service that did not meet cost recovery objectives if the revenue shortfall was caused by some temporary situation that could be Possible Payment System Improvements corrected. In any event, any decision to continue to provide a service that could not reasonably be expect- The Federal Reserve is committed to improving the ed to meet these objectives would be made by the payment mechanism. In this regard, interest has been Federal Reserve Board only after soliciting public expressed by some depository institutions and others comment and only in circumstances in which there in having the Federal Reserve introduce major enwere clear public benefits associated with such a hancements to existing services and offer new services course of action. Similarly, any decision to withdraw that will improve the payment system. In all such from a particular service line would have to be under- cases, further study will be required before such taken in an orderly way, giving due regard to the enhancements and services can be offered for public transition problems associated with the discontinua- comment or for implementation. tion of services. Among other things, such study will focus on techni- The Federal Reserve's operational presence in the cal feasibility, cost and benefits, the compatibility of payment system can be expected to change as the the particular initiative with the Federal Reserve's payment system evolves. Technological developments mission regarding the payment mechanism, and the are likely to be the most important influence, but compatibility of the initiative with the three criteria for changes also can be expected from increased interstate new service offerings and major service enhancements banking, the creative efforts of individual depository specified in this paper. These services might best be institutions, the entry of new participants in the pay- developed by the Federal Reserve independently, or ment system, and developments in law and regulation by acting jointly with depository institutions and other accommodating these and other changes. providers of payment services, as was the case with As the Federal Reserve introduces new services or MICR encoding of checks and the introduction of major service enhancements in the future, all of the ACH. With this in mind, there are several service following criteria must be met: areas that the Federal Reserve believes warrant partic- 1. The Federal Reserve must expect to achieve full ular attention over the next year or two. They include recovery of costs over the long run. the following: 2. The Federal Reserve must expect its provision of • Minimization of the costs and the time associated the service to yield a clear public benefit, including, with the handling and processing of return items. for example, promoting the integrity of the payment Initiatives in this area may entail certain short-term mechanism, improving the effectiveness of financial efforts such as notification of the institution of first markets, reducing the risk associated with payments deposit of large-dollar return items along the lines and securities transfer services, improving the effi- proposed by the Board in June 1984. Long-term efforts ciency of the payment mechanism, or reducing the use may require the application of new and higher technolof real resources, such as through the introduction of ogy to return-item processing as well as continued new technology. efforts to accelerate the collection of checks more 3. The service should be one that other providers generally. alone cannot be expected to provide with reasonable • In part related to improvements in the return-item effectiveness, scope, and equity. For example, it may process, efforts to speed up the collection of checks as be necessary for the Federal Reserve to provide a well as eliminate some of the physical handling of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 711 paper by applying electronic technology to the existing cluding improved electronic delivery and security of paper-based system. Some form of check truncation, payments. for example, appears to be a logical step in the The payment system will continue to evolve, adoptprogression toward electronic payments. ing new technologies and creating new risks and • Book-entry service for selected and limited classes opportunities. The Federal Reserve has an important of securities not presently held in book-entry form, role as a participant in that evolution. As such, the such as municipal securities, might offer attractive Federal Reserve will seek opportunities to improve economies while improving security and the payment existing services or to offer new services within the flow. The Federal Reserve could provide access to a framework of satisfying its responsibilities to promote number of institutions that might not have access to the integrity and efficiency of the payment system, existing alternatives. providing an adequate level of services nationwide, • Enhancements to existing electronic services, in- and serving the long-range interests of the economy. Appendix: Methodology for Computing internal financial reporting and control purposes. Clas- Federal Reserve Bank Costs and Fees sification of expenses by reason or output enables Federal Reserve management to analyze the overall In accordance with the Monetary Control Act, the costs of Reserve Bank operations in terms of on-going Federal Reserve establishes prices for its payment service responsibilities, the programs instituted to services in order to recover costs and a private sector fulfill these service responsibilities, and the basic adjustment factor (PSAF). The PSAF is an allowance activities or processes included in the provision of for the taxes that would have been paid and the return each service. on capital that would have been provided had the Within each area of responsibility ("service line") Federal Reserve's priced services been furnished by a there are subsidiary "services." The "Services to private sector firm. Financial Institutions and the Public" service line, for Costs for providing services are derived from the example, encompasses priced services such as com- Federal Reserve's Planning and Control System mercial check, electronic funds transfer, securities, (PACS). PACS is the uniform financial accounting and noncash collection. Within each of these subsidsystem Reserve Banks use for determining the full iary services, PACS identifies specific "activities" costs of fulfilling their four basic areas of responsibil- that reflect the basic operations or processes within ity: monetary policy, supervision and regulation, trea- the services. sury, and financial institutions and the public (the PACS classifies all costs into three categories: direct latter includes both priced and nonpriced services). costs, support costs, and overhead costs. Direct costs The system was developed in the mid-1970s to serve as are those costs directly attributable to a given service. a cost accounting system, similar to systems used in Support costs are those costs, such as computer the private sector, and also to serve as a vehicle for programming and building maintenance that, although evaluating the cost effectiveness and relative efficien- not directly used in priced service operations, are cy of Reserve Banks. required to support such activities. All support costs PACS provides the Federal Reserve with an impor- are fully charged to the benefiting activities on a usage tant management tool for budgeting and expense con- basis. Overhead costs represent all remaining Federal trol by ensuring that similar expenditures are recorded Reserve costs that cannot be charged directly to an by Reserve Banks in the same way and that all output service on a usage basis. Examples of overhead Reserve Banks post and report operating expenses functions include personnel, protection, and budget under a set of common and uniform definitions. control. Overhead costs are allocated to benefiting Like most expense accounting systems used in the services based upon formulas that reflect relative private sector, expenses under PACS are classified by usage. type or "object" of expense, such as salaries, sup- Each year, all Federal Reserve fees are reviewed plies, equipment, and travel, and the reason or "out- and revised if necessary. The annual review takes put" to which the expense is related, such as fiscal place during the third quarter of the year. Each service to the Treasury or the provision of check Reserve Bank forecasts its costs and volumes for each collection services to depositing institutions. Classifi- priced service for the upcoming year. Included in the cation of expenses by type enables the Federal Re- cost estimate is all direct, support, overhead, and float serve to collect necessary information for external and costs that are to be allocated to each priced service Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 Federal Reserve Bulletin • September 1984 line. The cost and volume estimates are based on a The proposed fees of the Reserve Banks are recombination of historical experience and projections. viewed by the System's Pricing Policy Committee and At the same time, the Federal Reserve calculates a the staff of the Board of Governors. The purpose of the proposed PSAF for the year. Services that have Sys- review is to ensure that the cost and volume estimates temwide uniform prices are based upon the aggregate are reasonable, the PSAF calculation is consistent cost and volume estimates of the 12 Reserve Banks. with System guidelines, and the proposed prices meet Fees for other priced services (check, safekeeping, the cost recovery policies of the Board of Governors. and the like) are based upon cost and volume estimates Finally, the Board of Governors reviews the proposed of the individual Reserve Banks. prices and PSAF. STANDARDS RELATED TO PRICED SERVICE MCA, the following additional standards have been ACTIVITIES OF THE FEDERAL RESERVE BANKS adopted with respect to organization and operations and business practices. Background Organization and Operations Since 1913, the Federal Reserve has performed a dual role as both an operator in and a regulator of the 1. No Reserve Bank personnel with responsibility nation's payment mechanism. Over the last 70 years— for priced services, unless acting in the capacity of and as recently as 1980—the Congress has reaffirmed President or First Vice President, will also be responthis role of the Federal Reserve. The Monetary Con- sible for monetary policy, bank supervision, or lending trol Act of 1980 (MCA) has expanded the Federal areas. Personnel involved in priced services will not Reserve's role by requiring the Federal Reserve to make policy decisions affecting monetary policy, bank provide its services to all depository institutions on an supervision, or lending matters. equitable basis, taking into account the need to ensure 2. Branch managers may administer policy decisions an adequate level of services nationwide. of a Reserve Bank in the lending area but may not The Federal Reserve has exercised care to avoid make policy decisions in this area. actual or apparent conflict between its role as a 3. Federal Reserve actions relative to the monetary provider of services and its role as a regulator, super- policy, supervisory, or lending functions involving a visor, and lender. Further, the Federal Reserve is particular depository institution will be made without careful to ensure that its actions promote the integrity regard to whether that institution is a user of Reserve and efficiency of the payment mechanism. As an Bank services or is an alternate provider of such extension of this, the Federal Reserve exercises care services. to ensure that it provides payment services to all 4. Except for the President, First Vice President, depository institutions on an equitable and impartial branch manager, or persons acting in these capacities, basis. Federal Reserve actions are also implemented in Reserve Bank personnel involved in monetary policy, a manner that ensures fairness to other providers of bank supervision, or the lending function may discuss payment services. Moreover, there are in place exter- Federal Reserve priced services with a depository nal and internal safeguards that ensure that these institution only when necessary to carry out their objectives are achieved. Externally, the safeguards responsibilities. With the exceptions noted above, include congressional oversight, directly and through personnel involved in priced services may discuss the General Accounting Office, and statutory controls. matters relating to monetary policy, bank supervision, An additional level of external review is provided by or lending with a depository institution only when the the public through the opportunity to comment on all information discussed is general in nature cr is public. significant Board proposals. The internal safeguards 5. Reserve Bank personnel involved in monetary include oversight by the Board of Governors and policy, bank supervision, or the lending function may Reserve Bank boards of directors through various provide confidential information obtained in the means, including use of Board examiners and Reserve course of their duties to Reserve Bank personnel Bank internal auditors. Finally, the Federal Reserve involved in priced services only when such action itself imposes restrictions upon the conduct of its fulfills an important supervisory objective, preserves employees—restrictions intended to avoid even the the integrity of the payment mechanism, or protects appearance of impropriety. the assets of the Reserve Banks. In such cases, To ensure further that its public interest role is information will be provided on a need-to-know basis paramount in providing priced services under the and only with the approval of senior management. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 713 Business Practices Accordingly, inquiries concerning Reserve Bank actions may be directed to Vice Chairman Martin's 1. All activities incident to the provision of priced attention. services will be conducted in a manner that is fully The internal audit and Board examination activities consistent with the public role and responsibilities of focus on Reserve Bank compliance with policies, the Federal Reserve. procedures, and controls, including standards of con- 2. Federal Reserve services will be offered on a fair duct related to priced service activities. Audit and and equitable basis to all depository institutions on examination attention also encompasses activities and similar terms and conditions. The prices charged will functions such as organizational structure and staffing, be in accordance with the requirements of the MCA as financial accounting and reporting, allocation of costs, implemented by policies of the Board of Governors. information flows, and associated internal controls. Reserve Banks will provide full and accurate information regarding the provision of Federal Reserve services, including features, quality, prices, and operat- Conclusion ing requirements, to enable depository institutions to make informed decisions. Comparisons of Federal It is the policy and practice of the Federal Reserve Reserve services with those of other providers will be System to conduct its affairs in a manner that will fair and objective. serve to maintain the integrity and credibility essential 4. When introducing or revising services, Reserve to the effective discharge Of its public responsibilities. Banks will announce such changes to the public in a The Federal Reserve believes that these standards manner that will ensure that communications reach all effectively address questions of potential conflicts interested depository institutions in sufficient time to while permitting the Federal Reserve to fulfill its enable them to make appropriate adjustments. public responsibilities in the provision of services to the nation's depository institutions. Internal Oversight The primary responsibility for assuring that the above FINANCIAL RESULTS OF standards are applied is entrusted to the management PRICED SERVICE OPERATIONS of each Reserve Bank. Accordingly, Reserve Bank management will ensure that these standards are clear- The Federal Reserve Board has reported finanly represented in Reserve Bank policies, procedures, cial results of Federal Reserve priced service and controls. Consistent with overall responsibilities, operations for the quarter ended June 30, 1984. each Reserve Bank's board of directors provides over- The Board issues a report on priced services sight of business conduct, principally through the annually and a priced service balance sheet and Bank's internal audit function. The internal audit income statement quarterly. The financial statefunction of each Reserve Bank maintains independence from operating management by reporting direct- ments, which are shown in accompanying tables ly to the Reserve Bank's board of directors. 1 and 2, are designed to reflect standard account- Oversight of Reserve Bank priced service activities ing practices, taking into account the nature of is also carried out by the Board of Governors. This is the Federal Reserve's activities and its unique accomplished through review and approval at the position in this field. Board level of price and service level changes. Furthermore, Reserve Bank priced service activities are NOTES TO THE FINANCIAL STATEMENTS evaluated in conjunction with on-site reviews by the Board's operations review and financial examination Balance Sheet (table 1) staffs. Board oversight through these means ensures that Reserve Bank activities are consistent with the Federal Reserve assets are classified as short- or long-term. Short- MCA and Board policies with regard to priced ser- term assets represent assets such as cash and due from balances, marketable securities, receivables, materials and supplies, prepaid vices. In addition, the Board member serving as the expenses, and items in the process of collection. Long-term assets are Chairman of the Board's Federal Reserve Bank Activ- primarily fixed assets, such as premises and equipment. ities Committee is responsible for investigating and The imputed reserve requirement on clearing balances and investment in marketable securities reflects the Federal Reserve's treatment responding to complaints concerning actions of Reof clearing balances maintained on deposit with Reserve Banks by serve Bank personnel that are alleged to be inconsis- depository institutions. For balance sheet and income statement tent with the standards presented above. Currently, presentation, clearing balances are reported on a basis comparable with reporting of compensating balances held by respondent institu- Vice Chairman Preston Martin serves in this capacity. tions with correspondents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 Federal Reserve Bulletin • September 1984 1. Pro forma balance sheet for priced services of 2. Pro forma income statement for priced services of Federal Reserve Banks, June 30, 1984 the Federal Reserve System Millions of dollars Millions of dollars ASSETS For three For six Short-term assets Income or months months Imputed reserve requirements on clearing expense item ending June ending June balances 160.0 30, 1984 30, 1984 Investment in marketable securities 1,173.4 Receivables 50.9 Income Materials and supplies 4.6 Services provided Prepaid expenses 3.0 to depository institutions 144.4 284.2 Net items in process of collection (float) 282.8 Expenses Total short-term assets 1,674.7 Production expenses 112.1 223.1 LESS: Board approved subsidies. 1.6 110.5 3.1 219.9 Long-term assets Premises 169.7 Furniture and equipment 99.5 Income from operations 33.9 64.2 Leases and leasehold improvements 2.3 Imputed costs Total long-term assets 271.4 Interest on float 4.6 17.1 Interest on short-term debt 0.8 1.6 Interest on long-term debt 2.2 4.4 Total assets 1,946.1 1.2 2.4 FDIC insurance .3 9.1 .6 26.1 LIABILITIES Short-term liabilities Clearing balances 1,333.4 Income from operations Balances arising from early credit of after imputed costs 24.7 38.2 uncollected items 282.8 Short-term debt 58.5 Other income and expenses Investment income 31.7 59.6 Total short-term liabilities 1,674.7 Earnings credits 30.1 1.7 56.5 3.2 Long-term liabilities Income before income taxes 26.4 41.3 Obligations under capital leases .4 Long-term debt 86.2 Imputed income taxes 10.2 16.0 Total long-term liabilities 86.6 16.2 25.4 Total liabilities 1,761.2 MEMO Targeted return on equity 6.0 11.9 Equity 184.8 Total liabilities and equity 1,946.1 NOTE. Details may not add to totals due to rounding. Accompanying notes are an integral part of these financial statements. NOTE. Details may not add to totals due to rounding. Accompanying notes are an integral part of these financial statements. services has been included in long-term assets in the premises Net items in the process of collection is the amount of float used to account. calculate additions to the cost base subject to recovery. Thus, it is the A matched-book capital structure for those assets that are not "selfdifference between cash items in the process of collection, including financing" has been used to determine the liability and equity checks, coupons, securities, and ACH transactions, and deferred amounts. Short-term assets are financed with short-term debt. Longavailability cash items. Therefore, the asset item on the balance sheet term assets are financed with long-term debt and equity in a proporcorresponds to the amount of float that the Federal Reserve must tion equal to the ratio of long-term debt and equity of the bank holding recover through fees to satisfy the Monetary Control Act. Conven- companies used in the private sector adjustment model. tional accounting procedures would call for the gross amount of cash items and deferred availability items to be included on a balance sheet. However, because the gross amounts have no implications for income or costs and no implications for the calculation of the private sector Float recovery by the Daily average, adjustment factor (PSAF), they are not reflected on the pro forma Federal Reserve Banks, 1984:2 millions of dollars balance sheet. The accompanying table depicts the Federal Reserve's float per- Total, adjusted 568.9 formance and float recovery. The amount of float recovered through Unrecovered1 105.4 per-item fees is valued at the federal funds rate. The value of this float Subject to recovery 463.5 is then added to the cost base subject to recovery for each appropriate Recovered through "as of' adjustments2 286.8 service. Recovered through direct charges2 119.4 Recovered through per-item fees3 57.3 Long-term assets that are reflected on the balance sheet have been allocated to priced services using a direct determination basis. This approach was adopted along with other changes in calculating the 1. Includes float generated in providing services to government PSAF for 1984. The direct determination method utilizes the Federal agencies or in other central bank services and float not recovered as a Reserve's Planning and Control System (PACS) to identify assets result of the ACH subsidy and the phase-in of other float recovery. used solely in priced services and to apportion assets used jointly in 2. Interterritory check float may be recovered from depositing the provision of different services to priced and nonpriced services. institutions through adjustments to the institution's reserve or clearing Included in long-term assets are leases, which have been capitalized balance or by valuing the float at the federal funds rate and billing the and which are related to priced services. Additionally, resulting from institution directly. changes to the PSAF methodology for 1984, an estimate of the assets 3. This float is valued at the federal funds rate and has been added of the Board of Governors related to the development of priced to the cost base subject to recovery in the second quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 715 Other short-term liabilities include clearing balances maintained at nity. The Board requested comment by October Reserve Banks and deposit balances arising from float. Other longterm liabilities consist of obligations on capital leases. 23, 1984. The Board also announced that it has extended System Income Statement (table 2) the period for comment on proposals published in June for revision of the Board's Regulation K The income statement reflects the income and expenses for priced services. Included in these amounts are Board approved subsidies, (International Banking Operations) from Sepimputed float costs, imputed financing costs, and the income and cost tember 12 to October 12, 1984. related to clearing balances. Income reflects charges to depository institutions for priced services. This income is realized through one of two methods: direct charges to an institution's deposit account or charges against accumulated earnings credits. Expenses include production expenses and the REVISION OF FEE STRUCTURE FOR WIRE expenses of Board staff working directly on the development of priced services that amounted to $0.5 billion in the second quarter of 1984. TRANSFERS OF FUNDS Board approved subsidies consist of a program established for the commercial automated clearinghouse (ACH) service. The incentive The Federal Reserve Board has published a pricing program established for the ACH service provides for fee structures designed to recover an increasing share of expenses. In revision to the fee structure for the Federal 1984, ACH revenues are intended to recover 60 percent of costs plus Reserve's wire transfer of funds service. The the private sector adjustment. This incentive pricing program is being phased out, with complete elimination planned in 1985. revision includes a reduction of the basic fee for Imputed float costs include the value of float that was intended to be originating or receiving a wire transfer of funds recovered, either explicitly or through per-item fees, during the first quarter of 1984 for the commercial check, automated clearinghouse, from $0.65 to $0.60 per transfer, effective Sepand book-entry securities transfer services. Also included in imputed tember 27, 1984. costs is the interest on short- and long-term debt used to finance priced service assets through the PSAF, and the sales taxes and FDIC At the same time, the Board established a insurance, which the Federal Reserve would have paid had it been a fixed monthly fee for all depository institutions private sector firm. Other income and expenses are comprised of income on clearing that have an electronic connection with the Fedbalances and the cost of earnings credits granted to depository eral Reserve for one or more priced services, institutions. In calculating the earnings credits paid on clearing balances, the Federal Reserve takes into account the fact that reserve effective January 2, 1985.1 requirements would be applied to compensating balances held at The Board acted after consideration of comcorrespondent banks. Had the reserve adjustment to earnings credits been in place in the second quarter, and assuming no resulting shift in ment received on proposals published in Januclearing balances, the expenses of earnings credits would have been about $28.0 million with a resulting increase in net clearing balance ary. income of $2.1 million and an increase in net income of $1.3 million to The fixed monthly fees are the following: $17.7 million. Imputed income taxes are calculated at the effective tax rate used in Monthly fees the PSAF calculation applied to the net income before taxes. Type of connection (dollars) The targeted return on equity represents the after-tax rate of return on equity that the Federal Reserve would have earned based on a All priced services, except dedicated model of bank holding companies. ACH connections Dedicated leased line 300 Multi-drop (shared) leased line 225 Dial-up line 60 CHANGES IN BOARD STAFF Dedicated ACH connections1 Dedicated leased line 240 Multi-drop (shared) leased line 180 Dial-up line 48 The Board of Governors has announced the promotion of William R. Jones to Assistant Staff 1. The automated clearing house (ACH) service is priced under an Director in the Office of the Staff Director for incentive pricing policy. The fees for dedicated ACH connections reflect the 80 percent recovery rate for the service that is anticipated Management effective September 12, 1984. to be in effect during January 1985. Currently, a daily fee of $0.75 is The Board has also announced the death of assessed for ACH electronic deliveries. This fee will be eliminated on January 2, 1985. Raymond Lubitz, Assistant Director, Division of The Board's notice respecting the fixed International Finance. He had been a staff memmonthly fees for electronic connections will be ber since 1973. available shortly from the Federal Reserve Banks. PROPOSED ACTIONS 1. Priced services include the automated clearinghouse, wire transfer of funds, net settlement, book-entry securities, The Federal Reserve Board approved publica- check collection, definitive safekeeping, and noncash collection. The fees would not be assessed for dedicated booktion for comment of a revision and expansion of entry securities connections because the fee structure for that its Rules Regarding Equal Employment Opportu- service is currently under review. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 Federal Reserve Bulletin • September 1984 SYSTEM MEMBERSHIP: Texas ADMISSION OF STATE BANKS Flower Mound Flower Mound Bank Garland Southwest Bank-Garland The following banks were admitted to member- Virginia ship in the Federal Reserve System during the Vienna Sailors and Merchants Bank period August 10 through September 10, 1984: and Trust Company Wyoming Arizona Cheyenne Frontier Bank Grande Bank of Casa Grande Valley of Laramie County Florida Coral Gables Transatlantic Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

717 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON JULY 16-17,1984 about 10 percent below the average for the first four months of the year. Sales of both new and Domestic Policy Directive existing homes edged down in May, apparently in response to the rising cost of mortgage credit. The information reviewed at this meeting sug- In contrast to the slowing in the housing secgested that growth in real GNP in the second tor, business fixed investment, in real terms, quarter, though moderating from the annual rate appeared to have grown quite rapidly in the of about 93/ percent currently recorded for the second quarter, perhaps faster than the annual 4 first quarter, would be stronger than the annual rate of 16 percent reported for the first quarter. rate of about 53/4 percent indicated by the prelimi- Shipments of nondefense capital goods increased nary estimate of the Commerce Department. sharply in May, more than offsetting a decline in Although the expansion in economic activity was April, and data on new orders pointed to further continuing at a strong pace, in late spring and gains in the months ahead. Recent surveys on early summer there were indications of modera- spending plans also suggested continued strength tion in some sectors. Average prices, as mea- in business fixed investment. sured by the fixed-weight price index for gross Nonfarm payroll employment, adjusted for domestic business product, appeared to have strike activity, rose 300,000 further in both May risen more slowly in the first half of 1984 than in and June. Employment gains in services and 1983. trade accounted for a major part of the increase Industrial production rose about ¥i percent in in each month. In manufacturing, employment in both May and June, after average increases of durable goods industries advanced somewhat about 1 percent per month earlier in the year. further, but employment in nondurable goods Output of business equipment and defense and firms was flat. The civilian unemployment rate space products continued to show sizable gains, fell appreciably over the two-month period, to while production of durable consumer goods and 7.1 percent in June. construction supplies leveled off. The rate of The producer price index for finished goods capacity utilization in manufacturing edged up was unchanged in June for the third consecutive 0.1 percentage point in each month to 81.8 per- month. In the second quarter as a whole, a cent in June, the average for the 1967-82 period. marked decline in prices of consumer foods The rise in total retail sales slowed in the May- offset an increase in prices of energy-related June period from an extraordinarily rapid pace in items, as most other components of the index April. In the second quarter as a whole, sales changed little. The rise in the consumer price advanced about 2Va percent, after a rise of V/i index slowed in May to 0.2 percent from 0.5 percent in the first quarter. Sales gains were percent in April. The index of average hourly reported at all major types of stores in the second earnings increased more slowly over the first half quarter, but were particularly strong at general of this year than in 1983. merchandise, apparel, and furniture and appli- In foreign exchange markets, the trade-weightance stores. Sales of new domestic automobiles ed value of the dollar against major foreign continued at an annual rate of about SVt million currencies had risen about 3V£ percent on balunits, the same pace as in the first quarter. ance since the Committee's meeting in May. The Housing starts declined in May, the latest dollar weakened for a brief period early in the month for which data were available, to a level intermeeting interval, partly reflecting rumors Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 Federal Reserve Bulletin • September 1984 about the vulnerability of large U.S. banks to and acquisitions accounted for some of the rapid international debt problems. Subsequently, indi- private credit growth but even after adjustment cations of more strength in U.S. economic activi- for such borrowing, the rate of expansion in total ty than had been anticipated and increases in debt was estimated to have exceeded the upper U.S. short-term interest rates contributed to an limit of the Committee's range. appreciation of the dollar to a level above its Growth in total reserves picked up in May and peak in early January. The U.S. merchandise accelerated further in June, reflecting increased trade deficit rose further in the April-May period demand for excess reserves and rapid expansion relative to the first quarter; an increase in oil and of required reserves associated with strong non-oil imports exceeded a slight rise in exports. growth in demand deposits in June and a surge in At its meeting on May 21-22, 1984, the Com- large time deposits that began in May. The mittee had decided that, in the period immediate- increase in reserves provided by discount winly ahead, policy should be directed toward main- dow credit, extended because of the special taining existing pressures on reserve positions. situation of one large bank, was offset by re- That action was expected to be consistent with duced reserve provision through open market growth in Ml, M2, and M3 at annual rates of operations, so that there was little change in around 6V2, 8, and 10 percent respectively during other borrowing. Adjustment plus seasonal borthe period from March to June. The Committee rowing (excluding advances to the large bank) also agreed that somewhat greater restraint continued to average close to $1 billion in the might be acceptable in the event of more sub- three complete reserve maintenance periods afstantial growth of the monetary aggregates, while ter the previous Committee meeting. In the first somewhat lesser restraint might be acceptable if part of the current two-week statement period growth of the monetary aggregates slowed signif- ending July 18, average borrowing was running icantly. Any such adjustment would be consid- lower, at about $670 million. ered only in the context of appraisals of the The federal funds rate moved up irregularly continuing strength of the business expansion, over the intermeeting period, from an average of inflationary pressures, financial market condi- around IOV2 percent at the time of the May tions, and the rate of credit growth. The inter- meeting to a range of around 11 to 11V2 percent in meeting range for the federal funds rate, which recent weeks. Pressures in the money market provides a mechanism for initiating consultation were especially marked around the mid-June tax of the Committee, was retained at IV2 to W/2 date and in the reserve maintenance period conpercent. taining the quarter-end statement date and the Ml grew at an annual rate of about 12'/4 July 4 holiday. The federal funds rate moved percent on average in May and June, after having higher over the intermeeting interval despite changed little in April. As a result, expansion in little change in the average level of adjustment Ml over the March-to-June period was at an plus seasonal borrowing at the discount window. annual rate of about 8V4 percent, above the In addition to usual end-of-quarter and holiday Committee's expectation for that period. Growth pressures in the federal funds market, banks in the broader aggregates was about in line with apparently became willing to pay more for federexpectations, as M2 and M3 grew at estimated al funds as credit demands continued strong and annual rates of 73A and 1014 percent respectively other sources of funds remained relatively exover the three-month period. Relative to the pensive. On balance, rates on bank CDs and Committee's longer-run ranges for 1984, Ml by other private short-term securities rose about V2 June was somewhat below its upper limit, M2 to 3A percentage point further, while rates on was a little below the midpoint of its range, and Treasury bills were about unchanged. The M3 was above the upper limit of its range. heightened uncertainties in financial markets, reflecting concerns about international debt Total domestic nonfinancial debt continued to problems and shifting perceptions about the outexpand in the second quarter at a pace above the look for economic activity and credit demands, Committee's monitoring range for the year, with led to a widening of differentials between yields both federal and private borrowing very strong. on private instruments and Treasury obligations Borrowing that was related to business mergers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 719 and to considerable day-to-day rate fluctuation. projections had a central tendency of 6LA to 63A In long-term debt markets, rates moved over an percent for 1984 as a whole and 3 to 3LA percent exceptionally wide range but over the intermeet- for 1985, all measured from fourth quarter to ing period as a whole rates on most private fourth quarter. The central tendency for the rate obligations changed little on balance, while those of unemployment was an average rate in a range on Treasury bonds declined about 15 to 40 basis of 63/4 to 7 percent for the fourth quarter of 1984 points. Commercial banks raised their "prime" and 6'/2 to 7 percent for the fourth quarter of rate Vi percentage point to 13 percent in the last 1985. The members' projections for the implicit week of June. The average rate on conventional GNP deflator centered on a rise of 4 to 4!/2 fixed-rate mortgage loans at savings and loan percent for the year 1984 and about one percentassociations rose about Vs percentage point over age point higher for the year 1985, assuming that the intermeeting interval to a little above 145/s the value of the dollar in foreign exchange marpercent. kets would remain generally in the trading range The staff projections presented at this meeting experienced over the past year. The projections suggested that growth in real GNP would moder- also took into account the monetary policy deciate appreciably over the second half of the year sions made at this meeting. and into 1985 to a sustainable rate of expansion. The members recognized that there were a The staff continued to expect a decline in unem- number of threats to the realization of the relaployment over the period and, given recent tively favorable economic developments implied strong gains in employment, the projected level by their projections and that the maintenance of of unemployment was somewhat lower than pre- a satisfactory economic performance for an exviously anticipated. Although current evidence tended period could only be assured by timely of wage and price pressures was limited, the rate actions in a number of policy areas. Given the of increase in prices was expected to pick up persisting strength of domestic demands, which modestly from its recent pace as the economy had been growing faster than GNP as reflected in continued to move toward fuller utilization of its the widening deficit in external trade, several productive resources. members indicated their concern about the risks In the Committee's discussion of the economic that those demands might proceed too long at an situation and outlook, the members commented unsustainable pace, with potentially adverse imthat the expansion appeared to have a good deal plications for inflationary pressures and for the of momentum, but with limited indications of continuation of the expansion itself. On the other some moderation. For the months immediately hand, most members clearly did not want to rule ahead, the members generally expected a slower, out the possibility that relatively high interest although relatively sizable, rate of expansion in rates, partly related strains in international and economic activity and a comparatively subdued domestic financial markets, and cautionary attirate of inflation. Most believed that appreciably tudes that might be emerging in economic sectors slower but sustainable growth with some pickup such as housing might result in more substantial in the rate of inflation were probable, though by slowing than was typically indicated. Various no means certain, prospects for 1985. Several imbalances and distortions in the economic and observed, however, that uncertainties created by financial picture, notably the massive deficits in various imbalances and financial strains in the the federal budget and in the current account of economy made forecasting economic activity the balance of payments, were also viewed as and prices particularly difficult at this time, and particular sources of concern. less confidence should be placed in any particu- With regard to the federal budget, current lar forecast. legislation was cited as a welcome development, In keeping with the usual practice for meetings but further measures were deemed essential to when the Committee considers its longer-run reduce the widening structural deficit. Federal objectives for monetary growth, the members financing requirements would otherwise continhad prepared specific projections of economic ue to absorb a large part of available net savings activity, the rate of unemployment, and average in a period of heavy demands for credit by prices. With regard to growth in real GNP, the businesses and households. The resulting pres- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

720 Federal Reserve Bulletin • September 1984 sures in financial markets would aggravate the tionary pressures would be greater than otherstrains on thrift and some other financial institu- wise, perhaps substantially so, if growth in tions and would impair the creditworthiness of demands for goods and services for too long both potential new borrowers such as home- exceeded sustainable rates or if the value of the buyers and the growing number of borrowers dollar were to decline substantially over the with outstanding loans or commitments on a projection period. variable interest rate basis. Relatively high inter- At this meeting the Committee reviewed its est rates would also worsen financial pressures in target ranges for 1984 and established tentative the agricultural sector where many farmers were ranges for 1985 within the framework of the Full experiencing serious debt problems. In addition, Employment and Balanced Growth Act of 1978 high U.S. interest rates tended to exacerbate the (the Humphrey-Hawkins Act).1 At its meeting already severe debt-servicing problems of sever- on January 30-31, 1984, the Committee had al developing countries and, in the process, to adopted growth ranges of 6 to 9 percent for both lessen confidence in U.S. banks with sizable M2 and M3 for the period from the fourth quarter loans to such countries. of 1983 to the fourth quarter of 1984, and a range With regard to the balance of payments and of 4 to 8 percent for Ml over the same period. It related capital flows, the unprecedented volume was understood at that time that substantial of capital attracted from abroad was contributing weight would continue to be placed on M2 and to the appreciation of the dollar despite enlarged M3 in policy implementation and that, for some deficits in the trade and current accounts. Such interim period, the behavior of Ml would be inflows were helping to finance domestic credit evaluated in light of the performance of the needs and were contributing to moderation of broader aggregates. Because of the changed inflationary pressures. However, their sustaina- composition of Ml, reflected in the relatively bility was subject to doubt, and their eventual rapid growth of its NOW and Super NOW comdecrease, especially if associated with a sudden ponents, its relationship to GNP remained uncerand sharp fall in the value of the dollar, could tain and required further observation. The monihave adverse repercussions for the economy. toring range for total domestic nonfinancial debt had been set at 8 to 11 percent for the year 1984. While the members generally anticipated a small increase in wages and prices over the With regard to the target ranges for 1984, all of period through the end of 1985, they discussed the members favored the retention of the existing possible developments that could produce a dif- ranges for Ml and M2, both of which had grown ferent outcome. Some members, who were rela- at rates within the Committee's targets over the tively optimistic about the outlook for inflation, first half of 1984. The members continued, howemphasized such factors as the remaining mar- ever, to recognize the difficulty of anticipating gins of unemployed resources in the economy, the ongoing relationships of these aggregates which might in fact be underestimated by current with broad economic measures under changing measures of capacity utilization, the impact of economic and financial circumstances, particucompetition from abroad, and the prospects for larly in light of the rapid expansion of new faster gains in productivity than many observers deposit accounts in a period of deregulation and expected. They also suggested that wage settle- of marked changes in financial practices. ments might continue to be relatively restrained, The members expected expansion in M3 and to the extent that workers' wage demands had total domestic nonfinancial debt to moderate been reduced significantly by back-to-back re- during the second half of 1984, but growth in cessions in the past few years and concomitant both measures, especially domestic debt, was high unemployment and a recent period of rela- still believed likely to exceed the existing ranges tively low inflation. Several members noted, for the year as a whole. Accordingly, some however, that important negotiations currently members favored raising the ranges somewhat to under way or about to begin, especially in the automobile industry, could have a significant precedential impact on subsequent wage negotia- 1. The Board's Midyear Monetary Policy Report pursuant to this legislation was transmitted to the Congress on July 25, tions. All of the members recognized that infla- 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 721 reflect first-half developments and the Commit- to a width more consistent with the ranges for the tee's expectations for the year. However, a other aggregates. Discussion centered on whethmajority preferred to retain the existing ranges er the range should be reduced to 4 to 7 percent on the ground that higher ranges would provide or 4 to IVi percent. Members who preferred the an inappropriate benchmark forjudging the long- range with a 7 percent upper limit commented run growth desired by the Committee. It was also that it would represent an appropriate reduction suggested that raising these ranges might be from 1984 because it would signal more clearly misread as an easing of monetary policy rather the Committee's intention to reduce monetary than as a technical adjustment to past develop- growth to rates more consistent with reasonable ments, including the unusual extent of merger- price stability while encouraging further expanrelated and leveraged buyout financings, which sion of economic activity. Those who preferred were estimated to have added about 1 percentage the smaller reduction in the upper limit felt that a point to the rate of credit growth during the first cautious approach was warranted in light of the half of the year. many uncertainties bearing on the economic out- At the conclusion of this discussion, the Com- look and developments with respect to velocity. mittee voted as follows to reaffirm the ranges for They also noted that the ranges would be rethe monetary aggregates and the associated viewed next February and could then be reduced range for total domestic nonfinancial debt that further if circumstances warranted. were established at the January meeting: Most members favored a small reduction for M2 in 1985, although a few expressed an initial preference for no change. A lower range for M2 The Committee agreed at this meeting to reaffirm the ranges for monetary growth that it had established would be in keeping with the Committee's intenin January: 4 to 8 percent for Ml and 6 to 9 percent for tion to reduce monetary growth over time and, at both M2 and M3 for the period from the fourth quarter least on the basis of the recent behavior of M2, of 1983 to the fourth quarter of 1984. The associated would be consistent with the members' projecrange for total domestic nonfinancial debt was also tions of lower growth in nominal GNP for 1985. reaffirmed at 8 to 11 percent for the year 1984. It was anticipated that M3 and nonfinancial debt might in- On the other hand, it was argued in support of crease at rates somewhat above the upper limits of retaining the 1984 range that the recently prevailtheir 1984 ranges, given developments in the first half ing relationship between M2 and nominal GNP of the year, but the Committee felt that higher target was at odds with historical trends and a reducranges would provide inappropriate benchmarks for tion in the M2 range would incur too much of a evaluating longer-term trends in M3 and credit growth. risk that actual growth might exceed the range, even with much slower expansion in nominal Votes for this action: Messrs. Volcker, Solomon, GNP during 1985. Boehne, Boy kin, Corrigan, Gramley, Mrs. Horn, Messrs. Martin, Partee, Rice, Ms. Seger, and A majority of the members were in favor of not Mr. Wallich. Votes against this action: None. changing the current ranges for M3 and total domestic nonfinancial debt for 1985, but a few Turning to the establishment of tentative members proposed small reductions in the range ranges for 1985, the members stressed the desir- for M3 and additional members favored marginal ability of taking further action, in line with previ- reductions in the monitoring range for nonfinanously stated Committee intentions, to reduce cial debt. In support of retaining the current growth in money and credit over time to rates ranges, it was pointed out that, given the expecthat would be consistent with maintaining rea- tation that actual growth was likely to exceed sonable price stability and sustainable economic both ranges in 1984, expansion within those expansion. However, individual members ex- ranges next year would represent a significant pressed some small differences in their views slowdown. However, some members expressed about the amount or timing of specific reductions concern about the implications of rapid debt in the ranges for 1985. expansion this year, which appeared to be re- In discussion of the tentative range for Ml flected to some extent in M3, and they believed that reduced ranges would be desirable and congrowth for 1985, the members generally favored sistent with overall policy objectives. lowering the upper limit and narrowing the range Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 Federal Reserve Bulletin • September 1984 In the course of discussion about the appropri- inflationary pressures as the economy moved ate ranges for the aggregates, the members noted closer to capacity limits would, in other circumthat in recent quarters the behavior of Ml in stances, warrant some increase of reserve rerelation to nominal GNP had been more consis- straint; but the current behavior of the monetary tent with previous cyclical patterns than had aggregates and the prospect that earlier increases been the case during 1982 and early 1983. As a in market interest rates would tend after some lag result it was concluded that Ml should be given to be reflected in growth at sustainable rates, roughly equal weight with the broader monetary together with the relatively sensitive conditions aggregates in the implementation of monetary in some financial markets, were factors that policy. However, the behavior of Ml as well as argued in favor of an essentially unchanged apthat of the broader aggregates would still contin- proach to policy implementation. ue to be appraised in light of developments in the With regard to possible deviations in pressure economy and financial markets, the outlook for on reserve positions toward greater or lesser inflation, and the rate of credit growth. restraint in response to incoming information, At the conclusion of its discussion, the Com- some members endorsed a symmetrical apmittee took the following action to establish proach that would relate any deviation in either tentative ranges for 1985 that included reductions direction to the behavior of the monetary aggrefrom 1984 in the upper limits of the ranges for Ml gates judged in the context of developments in and M2 by 1 and Vi percentage point respectively economic activity, inflationary pressures, finanand no changes in the range for M3 and the cial market conditions, and the rate of growth in associated range for total domestic nonfinancial credit. However, most of the members preferred debt: a somewhat asymmetrical approach that would involve a more prompt response to the potential For 1985 the Committee agreed on tentative ranges need for a move toward somewhat greater reof monetary growth, measured from the fourth quarter straint if monetary growth should accelerate in of 1984 to the fourth quarter of 1985, of 4 to 7 percent association with continued indications of an for Ml, 6 to %Vi percent for M2, and 6 to 9 percent for ebullient economy. In this view, policy imple- M3. The associated range for nonfinancial debt was set mentation should be relatively tolerant, for a at 8 to 11 percent. The Committee understood that policy implementa- time, of some shortfall in monetary growth betion would require continuing appraisal of the relation- cause the latter might well prove to be temporary ships not only among the various measures of money if the present apparent momentum in the econoand credit but also between those aggregates and my were to continue. nominal GNP, including evaluation of conditions in domestic credit and foreign exchange markets. In light of recent market developments, the members generally favored, for technical reasons, raising the intermeeting range for the feder- Votes for this action: Messrs. Volcker, Solomon, al funds rate by a small amount. The members Boehne, Boykin, Corrigan, Gramley, Mrs. Horn, Messrs. Martin, Partee, Rice, Ms. Seger, and regard the federal funds range as essentially a Mr. Wallich. Votes against this action: None. mechanism for initiating Committee consultation when its limits are persistently exceeded. In In the Committee's discussion of policy imple- recent weeks federal funds had tended to trade mentation for the weeks immediately ahead, well up in the current IVi to WVi percent range, most of the members indicated that they could and occasionally above that range, despite a support an approach directed toward maintaining relatively unchanged level of borrowing at the the existing degree of restraint on reserve posi- discount window (apart from special borrowing tions. Such an approach was thought likely to be by one large bank). A small upward adjustment associated with growth in the monetary aggre- was deemed advisable to provide some leeway gates from June to September at rates that were above the recent trading level before triggering a consistent with the Committee's objectives for consultation of the Committee. the year and below those experienced over the At the conclusion of the Committee's discussecond quarter, particularly for Ml. Some mem- sion, the members indicated their acceptance of bers commented that the risks of intensified a directive that called for maintaining the existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 723 degree of restraint on reserve positions. The short-term securities rose further, while rates on Treamembers expected such an approach to be asso- sury bills were about unchanged; in long-term debt markets, rates on most private obligations changed ciated with growth of Ml, M2, and M3 at annual little while those on Treasury bonds declined. rates of around 5l/z, IVi, and 9 percent respec- The foreign exchange value of the dollar against a tively in the period from June to September. The trade-weighted average of major foreign currencies members agreed that somewhat greater restraint has risen considerably further since mid-May to a level on reserve conditions would be acceptable in the above its peak in early January. The merchandise trade deficit rose further in April-May compared with context of more substantial growth in the monethe first quarter; an increase in oil and non-oil imports tary aggregates, while somewhat lesser restraint exceeded a slight rise in exports. might be appropriate if monetary growth were The Federal Open Market Committee seeks to fossignificantly slower. In either event, the need for ter monetary and financial conditions that will help to greater or lesser restraint would be considered reduce inflation further, promote growth in output on a sustainable basis, and contribute to an improved patonly against the background of developments tern of international transactions. In furtherance of relating to the continuing strength of the business these objectives the Committee agreed at this meeting expansion, inflationary pressures, conditions in to reaffirm the ranges for monetary growth that it had financial markets, and the rate of credit growth. established in January: 4 to 8 percent for Ml and 6 to 9 It was agreed that the intermeeting range for the percent for both M2 and M3 for the period from the fourth quarter of 1983 to the fourth quarter of 1984. federal funds rate would be raised to 8 to 12 The associated range for total domestic nonfinancial percent. debt was also reaffirmed at 8 to 11 percent for the year At the conclusion of the meeting the following 1984. It was anticipated that M3 and nonfinancial debt domestic policy directive was issued to the Fed- might increase at rates somewhat above the upper limits of their 1984 ranges, given developments in the eral Reserve Bank of New York: first half of the year, but the Committee felt that higher target ranges would provide inappropriate benchmarks for evaluating longer-term trends in M3 and credit The information reviewed at this meeting suggests growth. For 1985 the Committee agreed on tentative that the expansion in economic activity is continuing ranges of monetary growth, measured from the fourth at a strong pace, but there are indications of modera- quarter of 1984 to the fourth quarter of 1985, of 4 to 7 tion in some sectors. In May and June, industrial percent for Ml, 6 to 8V2 percent for M2, and 6 to 9 production and retail sales expanded further, though at percent for M3. The associated range for nonfinancial a somewhat slower pace than earlier in the year. debt was set at 8 to 11 percent. Nonfarm payroll employment rose substantially fur- The Committee understood that policy implementather in both months and the civilian unemployment tion would require continuing appraisal of the relationrate fell to 7.1 percent in June. Housing starts declined ships not only among the various measures of money in May to a rate appreciably below the average in the and credit but also between those aggregates and first four months of 1984. Information on outlays and nominal GNP, including evaluation of conditions in spending plans continues to suggest strength in busi- domestic credit and foreign exchange markets. ness fixed investment. Since the beginning of the year, In the short run, the Committee seeks to maintain average prices and the index of average hourly earn- existing pressures on reserve positions. This action is ings have risen more slowly than in 1983. expected to be consistent with growth in Ml, M2, and Ml grew rapidly in May and June after having M3 at annual rates of around 5'A, IV2, and 9 percent changed little in April, while M2 continued to expand respectively during the period from June to Septemmoderately. M3 growth slowed somewhat in June but ber. Somewhat greater reserve restraint would be was relatively strong over the second quarter. From acceptable in the event of more substantial growth of the fourth quarter of 1983 through June, Ml grew at a the monetary aggregates, while somewhat lesser rerate somewhat below the upper limit of the Commit- straint might be acceptable if growth of the monetary tee's range for 1984; M2 increased at a rate a little aggregates slowed significantly. In either case, such a below the midpoint of its longer-run range, while M3 change would be considered only in the context of expanded at a rate above the upper limit of its range. appraisals of the continuing strength of the business Total domestic nonfinancial debt continued to grow in expansion, inflationary pressures, financial market the second quarter at a pace above the Committee's conditions, and the rate of credit growth. The Chairmonitoring range for the year, reflecting very large man may call for Committee consultation if it appears government borrowing along with strong private credit to the Manager for Domestic Operations that pursuit growth. Interest rates have fluctuated considerably of the monetary objectives and related reserve paths since the May meeting of the Committee. Financial during the period before the next meeting is likely to markets were affected by concerns arising from inter- be associated with a federal funds rate persistently national debt problems. On balance, rates on private outside a range of 8 to 12 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 Federal Reserve Bulletin • September 1984 Votes for this action: Messrs. Volcker, Solomon, need for some easing of reserve conditions in Boehne, Boykin, Corrigan, Gramley, Mrs. Horn, light of the vulnerability of key sectors of the Messrs. Partee, Rice, Ms. Seger, and Mr. Wallich. economy and of financial markets to high interest Vote against this action: Mr. Martin. rates. He also believed that somewhat higher Mr. Martin dissented from this action because objectives for monetary growth should be estabhe wanted to give more weight to the possible lished for the third quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

725 Legal Developments BANK HOLDING COMPANY, BANK MERGER, AND considered the application and all comments received, BANK SERVICE CORPORATION ORDERS ISSUED including those of Union Planters Corporation, Knox- BY THE BOARD OF GOVERNORS ville, Tennessee ("Union Planters"), in light of the factors set forth in section 3(c) of the Act (12 U.S.C. Orders Issued Under Section 3 of Bank Holding § 1842(c)). Company Act Valley Fidelity, with deposits of $189 million, is the 16th largest bank in Tennessee, holding 0.9 percent of The following Order was inadvertently omitted from total deposits in commercial banks in the state.1 It is the September 1983 BULLETIN. the 3rd largest of eight banks in the relevant banking market,2 and holds 8.1 percent of deposits in commer- Credit and Commerce American Holdings cial banks in the market. N.V., Willemstad, Netherlands Antilles Because CCAH proposes only to acquire additional shares of a bank that is a subsidiary, consummation of Credit and Commerce American Investment the proposal would have no adverse effects on compe- B.V., Amsterdam, The Netherlands tition or increase the concentration of banking resources in any relevant market. Accordingly, competi- First American Corporation tive considerations are consistent with approval. Washington, D.C. The financial and managerial resources and future prospects of CCAH and Valley Fidelity are satisfac- First American Bankshares, Inc., tory. The Board thus concludes that considerations Washington, D.C. relating to banking factors are consistent with approval. Although no changes are contemplated in the Order Approving Acquisition of Shares of Bank services to be offered by Valley Fidelity, considerations relating to the convenience and needs of the Credit and Commerce American Holdings, N.V., Wil- community to be served are also consistent with lemstad, Netherlands Antilles; Credit and Commerce approval. American Investment, B.V., Amsterdam, The Nether- Section 3(d) of the Act (12 U.S.C. § 1842(d)) prohiblands; First American Corporation, Washington, its Board approval of any application which would D.C.; and First American Bankshares, Inc., Washing- permit a bank holding company to acquire, directly or ton, D.C. (collectively "CCAH"), have applied for the indirectly, any voting shares of "any additional bank Board's approval under section 3(a)(3) of the Bank located outside of the State in which the operations of Holding Company Act (12 U.S.C. § 1842(a)(3)) to such bank holding company's banking subsidiaries acquire additional shares of Valley Fidelity Bank and were principally conducted on . . . the date on which Trust Company ("Valley Fidelity"), Knoxville, Ten- the company became a bank holding company." The nessee; CCAH already owns 35 percent of the voting proposed transaction raises the issue of the applicabilstock of Valley Fidelity. ity of section 3(d), because CCAH has its primary CCAH is a grandfathered multi-state bank holding place of business in Virginia and Valley Fidelity is in company with subsidiary banks in Maryland, New Tennessee. Thus, the issue presented is whether ac- York, Tennessee, Virginia, and the District of Colum- quisition of additional shares of Valley Fidelity would bia. It succeeded to this status when it acquired constitute acquisition of shares of an "additional Financial General Bankshares, Inc., (Credit and Com- bank" located in Tennessee, a state other than the merce American Holdings, N.V., 67 FEDERAL RE- SERVE BULLETIN 737 (1981)). Notice of the application, affording opportunity for interested persons to submit comments, has been 1. All banking data are as of June 30, 1982. 2. The relevant banking market is the Knoxville banking market, given in accordance with section 3 of the Act and the which consists of the Knoxville RMA and includes Anderson, Blount, time for filing comments has expired. The Board has and Knox Counties in Tennessee. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 Federal Reserve Bulletin • September 1984 home state of CCAH. If Valley Fidelity were an the Board may not approve an application to acquire additional bank, then the Board could not approve the shares of any out-of-state bank, and the word "addiproposed acquisition. tional" would be meaningless. Neither the Act nor the legislative history of section In contrast, a straightforward reading of the prohibi- 3(d) definitively explains the term "additional bank." tion of section 3(d) would be that it bars the purchase The legislative history of the section indicates that its of shares of out-of-state banks that the bank holding general purposes were to prohibit future expansion of company does not control. Such an interpretation bank holding company banking operations across state provides a common sense meaning for the term "addilines, to preserve local control of banks, and to tional bank," and would prevent bank holding compaconform the restrictions in the BHC Act to the prohibi- nies from acquiring any out-of-state banks that were tions against branch banking contained in the McFad- not controlled on the date the company became a bank den Act.3 holding company. This reading of the statute would be Union Planters opposes CCAH's application, con- consistent with the stated desire of Congress to grandtending that Board approval of the application is father existing interstate banking organizations. It is barred by section 3(d). Union Planters argues that far more likely that Congress intended that the meanunless section 3(d) is construed to permit the acquisi- ing of "additional bank" be construed in light of its tion of additional shares only in cases where the bank determination that a company is to be presumed holding company already controls a majority of the conclusively to control a bank when it owns 25 percent bank's shares, Congressional intent to prevent inter- or more of the bank's voting shares, 12 U.S.C. state expansion would be frustrated. § 1841(a), and that such a bank also is deemed a As support for this assertion, Union Planters cites subsidiary of the company, 12 U.S.C. § 1841(d). Thus, the provisions of section 3(a)(B) of the Act, which the Board believes that it is more reasonable to exclude from the Act's prior approval requirements conclude that a bank that is 25 percent or more owned the acquisition of additional shares in majority-owned by an out-of-state bank holding company is not an banks. In Union Planters' view, this section evidences "additional bank" for purposes of section 3(d). a Congressional determination that only a majority- This construction of the statute also is consistent owned bank would not be deemed an "additional with Board precedent. In Otto Bremer Foundation, 52 bank" within the meaning of section 3(d). Alternative- FEDERAL RESERVE BULLETIN 1761 (1966), the applily, Union Planters states that at minimum a bank cant bank holding companies (two affiliated organizaholding company should be required to demonstrate tions) had owned 49 percent of the shares of an out-ofthat it has "actual operating control" of an out-of-state state bank prior to enactment of the Act. In acting on a bank before being allowed to increase its ownership proposal to acquire an additional 50 percent of the interest. Finally, Union Planters asserts that the Board bank's shares, the Board ruled that: should deny CCAH's application on the basis that it is inconsistent with the purposes of section 3(d), even if The term "additional bank" is interpreted by the Board to it is not barred by the literal words of that section. mean a bank other than a subsidiary bank. Therefore, since Thus, Union Planters claims that approval of this Bank is already a subsidiary of Applicants, the subject applications may be approved provided such approval is application would permit CCAH to merge Valley authorized by and consistent with other provisions of the Fidelity with other Tennessee banks and thereby ex- Act. Id. at 1763. pand CCAH's Tennessee operations in a manner inconsistent with the underlying purpose of section 3(d). The Board regards its Otto Bremer decision as provid- The Board has carefully reviewed Union Planters' ing direct support for CCAH's proposal to acquire contentions and finds them to be unpersuasive for the additional shares of Valley Fidelity.4 following reasons. It is unlikely that Congress intended the phrase "additional bank" in section 3(d) to mean any bank that is not majority-owned, because the prohibitions of section 3(d) only apply to applica- 4. Contrary to Union Planters' assertions, the Board's decision in tions that must be filed under the BHC Act and, as the Sumitomo Bank, Ltd. case, 63 FEDERAL RESERVE BULLETIN 411 noted above, applications are not required for the (1977), has little relevance to the Otto Bremer precedent. Sumitomo involved the issue of whether a company can have a grandfathered acquisition of additional shares of majority-owned interest in an out-of-state bank as a result of having a controlling banks. Thus, Union Planters' construction of the influence over that bank under section 2(a)(2)(C) of the BHC Act, and statute would effectively alter section 3(d) to state that the conditions imposed by the Board in that case were simply a means of reserving this issue for later decision. Reservation of this issue in no way limits the Otto Bremer precedent because the bank in Otto Bremer, as the bank in this case, was a subsidiary as a matter of law, by virtue of the holding company's ownership of more than 25 percent 3. 102 CONG. REC. 6856-6863 (1956). of its voting shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 727 Although Union Planters claims that CCAH does Board's assessment of the likelihood that an increase not have "actual operating control" over Valley Fidel- in the bank's shares owned by the applicants would ity, such a requirement is irrelevant for purposes of result in an alteration of the bank's operations that section 3(d).5 The term "control" is defined with some would benefit the local community. precision in the BHC Act, and the concept of "actual Finally, although the Board agrees with Union operating control" is not articulated in that definition. Planters' statement that the Board has broad discre- The term "controlling influence" is used in the Act, tion under section 5(b) of the BHC Act to prevent but it is merely one of three types of control listed and, evasion of that Act, the Board does not accept Union as noted above, CCAH clearly possesses one of the Planters' further assertion that this proposal repreother types of control defined in the Act. Moreover, sents an evasion of the purposes of section 3(d), even whereas a controlling influence may be found only if it is not prohibited by the literal words of that after a formal Board determination that such control section. Union Planters claims that this proposal could exists, the type of control held by CCAH through its result in a change in the actual control of Valley ownership of 25 percent or more of Valley Fidelity's Fidelity and that such a shift in control is inconsistent shares is both automatic and conclusive.6 with the basic purposes of section 3(d) to prevent Union Planters nevertheless asserts that the Board's expansion of out-of-state banking interests. Union Otto Bremer decision stands for the proposition that a Planters also states that such a shift in actual control bank holding company must have "actual operating would allow CCAH to acquire other Tennessee banks control" of an out-of-state bank in order to acquire by merger. additional shares of that bank. Although the Board In view of the fact that CCAH is conclusively stated that the Otto Bremer applicants appeared to presumed to control Valley Fidelity under the BHC have "working control" of the bank involved, 52 Act, the Board believes that an increase in CCAH's FEDERAL RESERVE BULLETIN at 1765, this statement interest in that bank cannot be viewed as inconsistent was unrelated to the Board's analysis of the section with the Act's purposes. Similarily, the BHC Act 3(d) issue. Rather, this observation was related to the generally exempts bank mergers from the Act's prior approval requirements, and the use of such transactions by grandfathered multi-state bank holding companies to expand their banking operations outside of their state of principal banking operations is therefore 5. Even if both the validity and relevance of the allegations made by consistent with the Act's structure. In addition, it is Union Planters in this regard are assumed, the Board would not regard this evidence as being particularly persuasive. For example, although quite clear that Congress intended to grandfather Union Planters attaches significance to its assertion that officers and existing multi-state bank holding companies, and there directors of Valley Fidelity discussed with Union Planters a proposal is no evidence of any desire on the part of Congress to by Union Planters to acquire Valley Fidelity, such actions appear consistent with the fiduciary duties of those officials to the sharehold- prevent such holding companies from preserving their ers of Valley Fidelity and would not, therefore, provide evidence that control of existing out-of-state subsidiaries. Only a few CCAH does not have actual control of Valley Fidelity. Similarly, the bank holding companies possess such grandfather fact that CCAH has only one director on Valley Fidelity's board suggests little regarding CCAH's ability to control Valley Fidelity rights, and this exception is thus of very limited because many bank holding companies have only one or two represen- applicability. tatives on the boards of directors of their subsidiary banks. 6. Union Planters has requested that a hearing be held to determine Union Planters also asserts that the application whether CCAH exercises "actual operating control" over Valley provides insufficient information regarding (1) the Fidelity. However, whether CCAH has "actual operating control", as source of funds to be used to finance the proposed defined by Union Planters, is immaterial to the Board's determination whether Valley Fidelity is an "additional bank" within the meaning of transaction, (2) the identities of any new shareholders section 3(d). As noted above, the Board has previously ruled that a of CCAH, and (3) certain allegations surrounding subsidiary bank is not an "additional bank" under section 3(d). Valley Fidelity is not an "additional bank" as a matter of law by virtue of Mr. Darwaish, a principal shareholder of CCAH. CCAH's ownership of more than 25 percent of Valley Fidelity's CCAH proposes to acquire the remaining 63.4 pershares. cent ownership in Valley Fidelity for $20.3 million. Under section 3(b) of the Act, the Board is required to hold a hearing when the primary supervisor of the bank to be acquired The application indicates that the source of funds for recommends disapproval of an application (12 U.S.C. § 1842(b)). In the acquisition of additional shares of Valley Fidelity this case, the Tennessee Commissioner of Banking has not objected to will be additional equity investments by shareholders the application. Thus, there is no statutory requirement that the Board hold a hearing. Moreover, there are no material issues of fact to be or available cash resources. The record also shows resolved at a hearing since the existence of "actual operating control" that on March 28, 1983, CCAH sold its 67.6 percent is irrelevant. The Board has received numerous written submissions by Union Planters and CCAH, and it does not appear that a hearing investment in the Bank of Commerce, New York, would significantly supplement the record before the Board. In view New York, for $34.4 million cash. These funds will be of these facts, the Board concludes that the record in this case is available, if necessary, for the purchase of Valley sufficiently complete to render a decision. Accordingly, Union Planters' request for a hearing is denied. Fidelity's shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 Federal Reserve Bulletin • September 1984 CCAH may sell additional shares at some time in the pate in these proceedings, particularly since one purfuture to raise additional equity. The identity of any pose of section 3(d) is to protect banking organizations possible new shareholders of CCAH is not provided in such as Union Planters from out-of-state competition. the application. However, the Board does not believe See Sierra Club v. Morton, 405 U.S. 727, 736-40 that such information is necessary to assess the mana- (1972). gerial factors of this application. CCAH's current Having found that the competitive, financial and principals have been identified to the Board and the managerial, and convenience and needs consider- Board has assessed the management of CCAH in the ations associated with the application are consistent course of its ongoing supervisory and regulatory re- with approval, the Board has determined that consumsponsibilities. If any change in the control of CCAH mation of the transaction would be consistent with the were contemplated, a notice to the Board would be public interest and that the application should be required which would necessarily include information approved. concerning any new principal of CCAH. Union Plant- On the basis of the record, the application is apers notes that information concerning Mr. Abdullah proved for the reasons summarized above. The trans- Darwaish, a former principal of CCAH who has been action shall not be consummated before the thirtieth the subject of certain allegations, is not included in the calendar day following the effective date of this Order application. However, the Board has been informed or later than three months after the effective date of by CCAH that Mr. Darwaish was a principal only to this Order, unless such period is extended for good the extent that he acted as the representative of cause by the Board or by the Federal Reserve Bank of Mohammad bin Zaid al Nahyan, a minor son of Sheik Richmond acting pursuant to delegated authority. Zayed Nahyan, the ruler of Abu Dhabi, who owns 14.7 By order of the Board of Governors, effective percent of CCAH's shares. Mr. Darwaish was dis- August 17, 1983. missed from this position in 1982. The son has reached his majority and is now acting on his own behalf as an Voting for this action: Governors Wallich, Partee, Teeters, owner of CCAH. Rice, and Gramley. Absent and not voting: Chairman Finally, CCAH argues that Union Planters has no Volcker and Governor Martin. standing to oppose this application since section 105 of the 1970 Amendments to the Act (12 U.S.C. § 1850) JAMES MCAFEE extends standing only to "a party who would become [SEAL] Associate Secretary of the Board a competitor of the applicant or subsidiary thereof by virtue of the applicant's or its subsidiary's acquisition." Here, Union Planters currently competes with Eagle Bancorporation, Inc. Valley Fidelity, through Hamilton First Bank, N.A., a Highland, Illinois subsidiary bank located in the Knoxville banking market. In addition, CCAH claims that Union Planters Order Approving Merger of Bank Holding is not within the zone of interests to be protected by Companies, Acquisition of Banks and Denying section 3(d) of the Act since CCAH does not believe Acquisition of a Bank its proposal contravenes section 3(d) or its underlying rationale. Eagle Bancorporation, Highland, Illinois, has applied The language contained in section 105 of the 1970 for the Board's approval under sections 3(a)(3) and Amendments to the BHC Act serves as a specific grant 3(a)(5) of the Bank Holding Company Act (the "Act") of standing to particular parties, but is not meant to (12 U.S.C. §§ 1842(a)(3), (5)) to merge with two one exclude all other parties who may have a legitimate bank holding companies and thereby acquire their interest in Board proceedings. Judicial tests of stand- subsidiary banks; to acquire directly the voting stock ing apply to any party that seeks to intervene in a of a bank, and to acquire two one bank holding Board proceeding. Martin-Trigona v. Federal Reserve companies and thereby indirectly acquire their subsid- Board, 509 F.2d 363, 366 (D.C. Cir. 1975). See Nation- iary banks. Applicant proposes to merge with Amerial Welfare Rights Organization v. Finch, 429 F.2d 725, can Eagle Bancorp, Inc., Glen Carbon, Illinois 732 and n. 27 (D.C. Cir. 1970). ("American Eagle"), whose subsidiary bank is Eagle Even if it were determined that the protest by Union Bank of Madison County, Glen Carbon, Illinois, and Planters did not fall within the specific grant of stand- with EBI, Inc., whose subsidiary bank is Eagle Bank ing contained in section 105, the assertions by Union of Charleston, Charleston, Illinois (Charleston Bank). Planters concerning the applicability of section 3(d) to Applicant proposes to acquire 97.5 percent of the CCAH's proposal represent a colorable claim of injury voting shares of Eagle Bank of Macon County, Forsufficient to give Union Planters standing to partici- syth, Illinois ("Macon Bank"), and the following one Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 729 bank holding companies: First Rantoul Corporation, tition in these markets.3 In addition, in view of the size Rantoul, Illinois, and thereby indirectly the Eagle and market shares of the banks involved in this Bank of Champaign County, Rantoul, Illinois ("Ran- proposal, consummation of the transaction would not toul Bank") and Harrisburg Bancshares, Inc., Harris- result in any significant adverse effects upon probable burg, Illinois, and thereby indirectly Harrisburg Na- future competition in any relevant market. Considertional Bank, Harrisburg, Illinois (Harrisburg Bank). ations related to the convenience and needs of the Together, the banks and bank holding companies to be community are also consistent with approval. acquired are referred to as "Banks". Applicant's The Board has indicated on previous occasions that principals currently control all of the banks to be a bank holding company should be a source of finanacquired except Harrisburg Bank. cial and managerial strength to its subsidiaries, and Notice of the applications, affording opportunity for that the Board will closely examine the condition of an interested persons to submit comments and views, has applicant in each case with these considerations in been given in accordance with section 3(b) of the Act. mind.4 The Board has also indicated and continues to The time for filing comments and views has expired, believe that capital adequacy is an especially imporand the Board has considered the applications and all tant factor in the analysis of bank holding company comments received in light of the factors set forth in proposals, particularly in transactions where a signifisection 3(c) of the Act (12 U.S.C. § 1842(c)). cant acquisition is proposed, and that it will consider Applicant is one of the smaller banking organiza- the implications of a significant level of intangible tions in Illinois, and controls three banking subsidiar- assets arising from a proposed expansion.5 ies with aggregate domestic deposits of $117.7 million, The proposed transactions represent a substantial representing approximately 0.1 percent of the total acquisition for Applicant that would more than double deposits in commercial banks in the state.1 Approval its size in terms of total assets. Applicant proposes to of the proposals to acquire the five additional banks, fund these acquisitions through the issuance of equity which hold combined deposits of $127.7 million, would securities and the assumption of debt, which would make the Applicant the 39th largest commercial bank- significantly increase its debt-to-equity ratio. ing organization in Illinois, and Applicant's share of Applicant's primary capital and total capital ratios the total deposits in commercial banks in the state both exceed the minimum levels in the Board's curwould increase to approximately 0.3 percent. Consum- rent6 and proposed Capital Adequacy Guidelines.7 mation of this proposal would not result in a significant Intangibles represent less than 7 percent of Appliincrease in the concentration of banking resources in cant's primary capital. Illinois. As a result of this proposal, Applicant's capital on a Both Applicant and American Eagle compete in the tangible basis would decline substantially, to a level St. Louis banking market.2 American Eagle's subsid- below that specified in the Board's current and proiary bank controls 0.1 percent of the total deposits in posed Capital Adequacy Guidelines, and more than commercial banks in the market. On October 3, 1983, one third of Applicant's primary capital would consist Applicant's lead bank, Eagle Bank and Trust Compa- of intangibles. On a tangible basis, Applicant's pro ny, Highland, Illinois, opened a facility in the St. forma primary capital ratio would be less than 4.5 Louis banking market at Collinsville, Illinois. Due to percent. While, in previous cases, the Board has its relatively recent opening, data regarding the market included intangible assets in evaluating a bank holding share for the facility are not available. In the Board's judgment, consummation of the transaction would not have a significant adverse effect upon existing competition in the St. Louis banking market. 3. These markets are the Champaign-Urbana banking market, Each of the other four banks Applicant proposes to which is approximated by all of Champaign County, Illinois, except acquire operates in a separate banking market in which for the southeastern townships of Ayer, Raymond and Crittenden; the Applicant's subsidiary banks do not compete. Accord- Harrisburg banking market, which is approximated by Gallatin and Saline Counties, Illinois; the Decatur banking market, which is ingly, consummation of these proposals would not approximated by all of Macon County, Illinois, plus Moweaqua have any significant adverse effects on existing compe- township in Shelby County, Illinois, and the Coles County banking market, which is approximated by Coles County, Illinois. 4. Emerson First National Company, 67 FEDERAL RESERVE BUL- LETIN 344 (1981). 12 CFR § 225.4(a)(1). 5. National City Corporation, 70 FEDERAL RESERVE BULLETIN 743. Banks of Mid America, Inc. ,70 FEDERAL RESERVE BULLETIN 460 1. Banking data are as of June 30, 1983. (1984). Manufacturers Hanover Corporation (CIT), 70 FEDERAL RE- 2. The St. Louis banking market includes all of the city of St. Louis SERVE BULLETIN 452, 453 (1984). and St. Louis County, portions of Franklin, Jefferson, Lincoln and St. 6. Capital Adequacy Guidelines (12 C.F.R. Part 225 Appendix A). Charles Counties, Missouri, plus portions of Jersey, Macoupin, 7. Proposed Minimum Capital Guidelines for Bank Holding Com- Madison, Monroe, and St. Clair Counties, Illinois. panies, 49 Federal Register 30317 (July 30, 1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 Federal Reserve Bulletin • September 1984 company's capital adequacy, the Board has not ap- On the basis of the foregoing and all the facts of proved an Applicant's reliance on intangible assets to record, it is the Board's judgment that approval of the the extent proposed here to meet the Board's mini- application to acquire Harrisburg Bancshares, Inc., mum capital requirements. would not be in the public interest, and that this The financial and managerial resources of Appli- application should be and hereby is denied. The applicant's three existing subsidiary banks, Harrisburg cations to merge with American Eagle Bancorp, Inc., Bank, and two of the remaining four banks to be and EBI, Inc., and to acquire Eagle Bank of Macon acquired are generally satisfactory. The financial and County and First Rantoul Corporation are approved. managerial resources of the other two banks, howev- The approved transactions should not be made er, which had been subject to supervisory concern before the thirtieth calendar day following the effective when they were recently acquired by Applicant's date of this Order, or later than three months after the principals, are in need of improvement, and Appli- effective date of this Order, unless such period is cant's principals have begun to take action to improve extended for good cause by the Board or by the these banks. The Board is particularly concerned with Federal Reserve Bank of St. Louis under delegated the substantial reduction in Applicant's tangible pri- authority. mary capital and increase in the level of indebtedness By order of the Board of Governors, effective that would result from this proposal in view of the August 17, 1984. need for improvement of these two banks. In evaluating Applicant's financial and managerial Voting for this action: Vice Chairman Martin and Goverresources the Board has considered the fact that four nors Wallich, Partee, Rice, and Gramley. Absent and not of the banking organizations to be acquired are already voting: Chairman Volcker and Governor Seger. owned by Applicant's principals and that this proposal represents merely a reorganization of the ownership of WILLIAM W. WILES the banks from individuals to a corporation owned by [SEAL] Secretary of the Board the same individuals. The acquisition of Harrisburg, however, represents a major expansion by Applicant and its principal shareholders and a diversion of their Fourth National Corporation overall financial and managerial resources at a time Marion, Arkansas when their efforts should be devoted to ensuring the proper maintenance of the four banking organizations Order Approving Acquisition of a Bank Holding they already control, and particularly their two recent Company acquisitions. On the basis of the facts of record, including the fact Fourth National Corporation, Tulsa, Oklahoma, a that the financial and managerial resources of Appli- bank holding company within the meaning of the Bank cant and its principal shareholders are already commit- Holding Company Act of 1956 ("Act"), 12 U.S.C. ted to Applicant's existing subsidiary banks and the § 1841 et seq., has applied for the Board's approval affiliated banks, the Board believes that, on balance, under section 3(a)(3) of the Act, 12 U.S.C. Applicant's financial and managerial resources are § 1842(a)(3), to acquire all of the voting shares of consistent with approval of its application to acquire United Bancshares, Inc. ("UBI"), Tulsa, Oklahoma, the four banks that are already owned by Applicant's and thereby to acquire indirectly United Bank, Tulsa, principals. The Board concludes, however, that Appli- Oklahoma. cant's resources are not sufficient to support the Notice of the application, affording an opportunity additional acquisition of Harrisburg Bank and at the for interested persons to submit comments, has been same time continue to serve as a source of financial given in accordance with section 3(b) of the Act. The and managerial strength to its existing subsidiary time for filing comments has expired, and the Board banks as well as the four affiliated banks it seeks to has considered all comments in light of the factors set acquire. The record shows that over half of the intangi- forth in section 3(c) of the Act, 12 U.S.C. § 1842(c). ble assets involved in the combined transactions and Applicant's subsidiary bank, the Fourth National one third of the debt of the consolidated organization Bank of Tulsa ("Fourth National"), Tulsa, Oklahoma, would be attributable to the acquisition of Harrisburg is the sixth largest commercial bank in Oklahoma. It Bank. Absent the Harrisburg acquisition, Applicant's controls total deposits of $327 million,1 which reprepro forma ratios of debt to equity, and primary capital sents 1.3 percent of the total deposits in commercial are generally consistent with the Board's Capital Adequacy Guidelines, and do not unduly rely on intangibles. 1. All deposit data are as of June 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 731 banks in the state. United Bank is the 127th largest Bank are consistent with approval, particularly in light commercial bank in Oklahoma. It controls total depos- of the recent efforts of Applicant's principal to its of $47.5 million, which represents 0.2 percent of the strengthen the financial and managerial resources of total deposits in commercial banks in the state. Upon three of Applicant's affiliates. Considerations relating consummation of the proposal, Applicant would re- to the convenience and needs of the communities to be main the sixth largest commercial banking organiza- served also are consistent with approval of this applition in Oklahoma. It would control total deposits of cation. $374.5 million, which represents 1.5 percent of the On the basis of the record, the application is aptotal deposits in commercial banks in the state. Thus, proved for the reasons summarized above. The transconsummation of this proposal would have no signifi- action shall not be consummated before the thirtieth cant effect upon the concentration of commercial calendar day following the effective date of this Order, banking resources in Oklahoma. or later than three months after the effective date of Fourth National Bank and United Bank operate in this Order, unless such period is extended for good the Tulsa market.2 Although one of Applicant's princi- cause by the Board or by the Federal Reserve Bank of pals is also a principal in six other Oklahoma bank Kansas City, acting pursuant to delegated authority. holding companies, none of the subsidiary banks of By order of the Board of Governors, effective these companies is located in the Tulsa market. Fourth August 29, 1984. National Bank is the third largest commercial bank in that market, controlling 6.4 percent of deposits in Voting for this action: Vice Chairman Martin and Govercommercial banks in the market. United Bank is the nors Wallich, Partee, Gramley, and Seger. Absent and not 25th largest bank in the Tulsa market, controlling 0.9 voting: Chairman Volcker and Governor Rice. percent of the deposits in commercial banks in the market. JAMES MCAFEE Upon consummation of this proposal, Applicant [SEAL] Associate Secretary of the Board would control 7.4 percent of the deposits in commercial banks in the Tulsa market, and would remain the third largest commercial banking organization. The Ken-Caryl Investment Company Tulsa market is only moderately concentrated and Littleton, Colorado would remain so upon consummation of this proposal.3 The pre-merger Herfindahl-Hirschman Index Order Approving Formation of a Bank Holding ("HHI") in the Tulsa market is approximately 1280. Company Upon consummation of the proposal, the HHI would increase by 12 points to approximately 1292. In view Ken-Caryl Investment Company, Littleton, Colorado, of these facts, the Board concludes that while consum- has applied for the Board's approval under section mation of this proposal would eliminate some existing 3(a)(1) of the Bank Holding Company Act of 1956, as competition in the Tulsa market, it would not have a amended ("Act") (12 U.S.C. § 1842(a)(1)), to become significant adverse effect upon competition in that a bank holding company by acquiring all of the voting market, or in any other relevant market. Accordingly, shares of Ken-Caryl National Bank, Littleton, competitive considerations are consistent with ap- Colorado. proval of this application. Notice of the application, affording opportunity for Where principals of an applicant are engaged in interested persons to submit comments, has been operating a chain of banking organizations, the Board, given in accordance with section 3(b) of the Act. The in addition to analyzing the proposal before it, also time for filing comments has expired, and the Board considers the entire chain and analyzes the financial has considered the application and all comments reand managerial resources and future prospects of the ceived in light of the factors set forth in section 3(c) of chain under the Board's Capital Adequacy Guidelines. the Act (12 U.S.C. § 1842(c)). The financial and managerial resources and future Applicant, a nonoperating company, was organized prospects of Applicant, its affiliates, UBI, and United for the purpose of becoming a bank holding company by acquiring Bank. Upon consummation, principals of Applicant would control a banking organization with 2. The Tulsa market is defined as the Tulsa Ranally Metro Area. deposits of $7.4 million, which is one of the smallest 3. Under the Justice Department Merger Guidelines (June 14, banking organizations in Colorado.1 1982), a market with a Herfindahl-Hirschman Index ("HHI") of between 1000 and 1800 is considered moderately concentrated. In such markets, the Justice Department is unlikely to challenge any acquisition that results in an increase in the HHI of less than 100 points. 1. Banking data are as of March 31, 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 Federal Reserve Bulletin • September 1984 The proposed transaction represents a corporate Holding Company Act (12 U.S.C. § 1841 et seq.) reorganization and would not increase the concentra- ("Act"), has applied for the Board's approval under tion of banking resources in any relevant area. Neither section 3(a) of the Act (12 U.S.C. § 1842(a)) to merge Applicant nor any of its principals is affiliated with any with First Bloomington Corporation, Bloomington, other banking organization in the banking market Illinois ("Company"). As a result of the transaction, within which Bank is located2 and consummation of Applicant would acquire Company's subsidiary bank, the proposal would not result in any adverse effects The National Bank of Bloomington, Bloomington, upon competition in any relevant area. Considerations Illinois ("Bank").1 relating to the convenience and needs of the communi- Notice of the application, affording an opportunity ty to be served are also consistent with approval. for interested persons to submit comments, has been Although Applicant will incur some debt in connec- given in accordance with section 3(b) of the Act. The tion with the proposed acquisition, its debt-to-equity time for filing comments has expired, and the Board ratio will be within the level permitted under the has considered the application and all comments re- Board's policy statement regarding the formation of ceived in light of the factors set forth in section 3(c) of small one-bank holding companies.3 Based on all the the Act. facts of record, particularly commitments made by Applicant, the fifth largest commercial banking or- Applicant's principal, the Board concludes that Appli- ganization in Illinois, controls 17 subsidiary banks cant's financial and managerial resources and future with aggregate deposits of $1.4 billion, representing prospects are consistent with approval. 1.4 percent of the total deposits in commercial banks On the basis of these and other facts of record, it is in the state.2 Company, one of the smaller commercial the Board's judgment that the application should be, banking organizations in Illinois, controls one subsidand hereby is, approved for the reasons summarized iary bank with aggregate deposits of $113.9 million, above. The transaction shall not be consummated representing 0.1 percent of the total deposits in combefore the thirtieth calendar day following the effective mercial banks in the state. Upon consummation of this date of this Order, or later than three months after the proposal, Applicant would remain the fifth largest effective date of this Order, unless such period is commercial banking organization in Illinois, controlextended for good cause by the Board, or by the ling 1.5 percent of the total deposits in commercial Federal Reserve Bank of Kansas City pursuant to banks in the state. Accordingly, the merger of Applidelegated authority. cant and Company would not have any significant By order of the Board of Governors, effective effect on the concentration of banking resources in August 22, 1984. Illinois. Applicant competes directly with Company's sub- Voting for this action: Chairman Volcker and Governors sidiary bank in the Bloomington-Normal banking mar- Martin, Wallich, Partee, Rice, Gramley, and Seger. ket.3 Applicant is the largest commercial banking organization in the relevant banking market with JAMES MCAFEE $121.5 million in deposits, which represents 16.0 per- [SEAL] Associate Secretary of the Board cent of the total deposits in commercial banks in the market.4 Company is the third largest commercial banking organization in the relevant market, control- Midwest Financial Group, Inc. ling $104.4 million in deposits, which represents 13.7 Peoria, Illinois percent of the total deposits in commercial banks in the market. Upon consummation of this proposal, Order Approving the Merger of Bank Holding Applicant would control $225.9 million in deposits in Companies the relevant market and 29.7 percent of the total deposits in commercial banks in the market. Midwest Financial Group, Inc., Peoria, Illinois, a bank holding company within the meaning of the Bank 1. Applicant has also filed an application with the Comptroller of 2. Bank is located in the Denver banking market, which is approxi- the Currency under the Bank Merger Act to merge one of its bank mated by all of Denver County, plus the western third of Adams subsidiaries, Corn Belt Bank, Bloomington, Illinois, with Bank. The county, the western third of Arapahoe County, the northern half of resulting bank would operate under the name of Corn Belt National Jefferson County, a portion of extreme southwest Weld County, and a Bank of Bloomington. portion of extreme southeast Boulder County. 2. State banking data are as of June 30, 1983. 3. "Revision of Regulation Y," 70 FEDERAL RESERVE BULLETIN 3. The Bloomington-Normal banking market is approximated by 144-145 (1984), "Appendix B—Policy Statement for Formation of McLean County, Illinois. Small One-Bank Holding Companies." 4. All market data are as of September 30, 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 733 Although an acquisition of this size would normally number of the market's thrift institutions, particularly cause concern, the Board believes that certain facts of Bloomington Federal, are now engaged in commercial record mitigate the anticompetitive effects of the trans- lending activities. Consequently, the Board has deteraction. First, the Bloomington-Normal banking mar- mined that consummation of this proposal would not ket is only moderately concentrated and would remain have a significantly adverse effect on existing competiso upon consummation of this proposal. Although the tion in the Bloomington-Normal banking market. Herfindahl-Hirschman Index ("HHI") would in- Applicant's financial and managerial resources and crease by 438 points upon consummation, the resulting future prospects are generally satisfactory. Bank has HHI would be only 1488,5 and the share of deposits not been a strong competitor recently and its market held by the four largest commercial banking organiza- share and deposits declined during 1983. Approval of tions in the market would be 66.8 percent. Further- this application would provide Bank with the financial more, 18 independent commercial banking competi- resources needed to improve its capital and earnings tors would remain in the market upon consummation position and maintain banking services to the Bloomof this proposal. ington-Normal community. Banking and convenience Finally, in its evaluation in previous cases of the and needs factors therefore lend weight toward apcompetitive effects of a proposal, the Board has indi- proval of the application and outweigh any anticomcated that thrift institutions have become, or at least petitive effects that may result from consummation of have the potential to become, major competitors of this proposal. Accordingly, the Board has determined commercial banks.6 On this basis, the Board has that consummation of the transaction would be conaccorded substantial weight to the influence of thrift sistent with the public interest and that the application institutions in its evaluation of the competitive effects should be approved. of a proposal. In this case, the increase in concentra- On the basis of the record, this application is aption in the Bloomington-Normal banking market is proved for the reasons summarized above. The merger alleviated by the presence of eight thrift institutions in shall not be consummated before the thirtieth calendar the market that hold deposits of $538.2 million, which day following the effective date of this Order, or later represents approximately 41 percent of the total de- than three months after the effective date of this posits in commercial banks and thrift institutions in the Order, unless such period is extended for good cause market.7 The market's largest depository institution, by the Board or by the Federal Reserve Bank of Bloomington Federal Savings and Loan Association Chicago, acting pursuant to delegated authority. ("Bloomington Federal") is a thrift institution that By order of the Board of Governors, effective controls $333.8 million in deposits8 and is substantially August 14, 1984. larger than any of the commercial banking organizations in the market. The thrift institutions in the Voting for this action: Vice Chairman Martin and Govermarket currently offer a full range of consumer ser- nors Wallich, Partee, Rice, and Gramley. Absent and not vices and transaction accounts, as well as commercial voting: Chairman Volcker and Governor Seger. real estate loans. Thrift institutions in the market have the power to engage in the business of making com- WILLIAM W. WILES mercial loans, and available evidence indicates that a [SEAL] Secretary of the Board Northwest Illinois Bancorp, Inc. 5. Under the Department of Justice Merger Guidelines, a market with a post-merger HHI of between 1000 and 1800 is considered Freeport, Illinois moderately concentrated. In such markets, the Department is "more likely than not" to challenge a merger that produces an increase in the Order Approving Retention of Bank Holding HHI of 100 points or more. 6. Florida National Banks of Florida, Inc., 70 FEDERAL RESERVE Companies and Banks BULLETIN 147 (1984); Comerica, Inc. (Bank of the Commonwealth), 69 FEDERAL RESERVE BULLETIN 797 (1983); General Bancshares Corporation, 69 FEDERAL RESERVE BULLETIN 802 (1983); First Ten- Northwest Illinois Bancorp, Inc., Freeport, Illinois, a nessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 bank holding company within the meaning of the Bank (1983). Holding Company Act ("Act")(12 U.S.C. § 1841 7. If 50 percent of the deposits of thrift institutions were taken into account in computing market shares, Applicant's market share would et seq.), has applied for the Board's approval under be 11.8 percent, Company's market share would be 10.1 percent, and section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to the HHI would be 867, a level which the Justice Department considers as representing unconcentrated markets. Upon consummation of this retain all of the voting shares of Pecatonica Bancproposal, Applicant's market share would increase to 21.9 percent, shares, Inc., Pecatonica, Illinois ("Pecatonica Bancand the HHI would increase by 239 points to 1106, a level in the lower shares"), and thereby indirectly Bank of Pecatonica, end of the moderately concentrated range. 8. Thrift institution data are as of September 30, 1982. Pecatonica, Illinois ("Pecatonica Bank"); all of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 Federal Reserve Bulletin • September 1984 voting shares of Rock City Bancshares, Inc., Rock by 194 points to 2156.4 While consummation of this City, Illinois ("Rock City Bancshares"), and thereby proposal would eliminate some existing competition indirectly Rock City Bank, Rock City, Illinois ("Rock between Freeport Bank and Rock City Bank, the City Bank"); and 70 percent of the voting shares of Board has concluded that the anticompetitive effects The Whaples and Farmers State Bank, Neponset, of this proposal are mitigated by the extent of competi- Illinois ("Whaples Bank").1 Together the bank hold- tion afforded by thrift institutions in the market and ing companies and banks to be retained are referred to several other factors.5 as Banks. Three thrift institutions hold total deposits of $132.2 Notice of the application, affording opportunity for million, representing 24.9 percent of the total deposits interested persons to submit comments, has been in the market and rank as the third, fourth, and eighth given in accordance with section 3(b) of the Act. The largest depository organizations in the market. The time for filing comments has expired, and the Board thrift institutions in the market offer a full range of has considered the application and all comments re- transaction accounts (including NOW accounts), in ceived in light of the factors set forth in section 3(c) of addition to consumer lending services, and have begun the Act (12 U.S.C. § 1842(c)). to offer commercial lending services. In view of these Applicant controls one commercial bank, Freeport facts, the Board has considered the presence of thrift State Bank, Freeport, Illinois ("Freeport Bank"). institutions as a significant factor in assessing the Freeport Bank is the 117th largest commercial bank in competitive effects of this proposal in the Freeport Illinois, with total deposits of $121.1 million, repre- banking market.6 senting 0.1 percent of total deposits in commercial The Board has also considered the fact that Banks banks in the state.2 Pecatonica Bank (deposits of $19.5 had been subject to supervisory concern prior to their million), Rock City Bank (deposits of $12.7 million), acquisition by Freeport Bank, further mitigating the and Whaples Bank (deposits of $4.2 million), are competitive effects of Applicant's acquisition of Rock among the smaller commercial banks in the state. City Bank.7 Based on the foregoing and other facts of Upon consummation of this proposal, Applicant record, the Board concludes that consummation of would control total deposits of $157.5 million, repre- this proposal would not result in any significant adsenting less than 0.2 percent of the total deposits in verse competitive effects in the Freeport banking commercial banks in the state. Accordingly, consum- market. mation of this proposal would not result in any signifi- Whaples Bank competes in the Kewanee banking cant adverse effects on the concentration of banking market8 and Pecatonica Bank competes in the Rockresources in Illinois. ford banking market.9 Applicant does not compete in Both Freeport Bank and Rock City Bank compete in the Freeport banking market.3 Freeport Bank is the largest of 12 commercial banks in the market, control- 4. Under the United States Department of Justice Merger Guideling 30.3 percent of the total deposits in commercial lines (June 14, 1982), a market in which the post-merger HHI is greater banks. Rock City Bank is the seventh largest commer- than 1800 is considered to be highly concentrated. In such markets, the Department has indicated that it is likely to challenge any merger cial bank in the market, controlling 3.2 percent of the that produces an increase in the HHI of 100 points or more. total deposits in commercial banks. Upon consumma- 5. The Board has previously determined that thrift institutions have tion of this proposal, Applicant would control total become, or at least have the potential to become, major competitors of banks. NCNB Corporation, 70 FEDERAL RESERVE BULLETIN 225 deposits of $133.8 million, representing 33.5 percent of (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLETIN 934 (1983); the total deposits in commercial banks in the market. Merchants Bancorp, Inc., 69 FEDERAL RESERVE BULLETIN 865 The four largest commercial banks in the Freeport (1983); Monmouth Financial Services, Inc., 69 FEDERAL RESERVE BULLETIN 867 (1983); First Tennessee National Corporation, 69 banking market control 75.1 percent of the total depos- FEDERAL RESERVE BULLETIN 298 (1983). its in commercial banks and the Herfindahl-Hirsch- 6. If 50 percent of the deposits held by thrift institutions were man Index ("HHI") is 1962. Upon consummation of included in the calculation of market concentration, Applicant would remain the largest financial institution in the market, controlling 26 this proposal, the four-firm concentration ratio would percent of the total deposits; Rock City Bank would be the 10th largest increase to 78.3 percent and the HHI would increase financial institution in the market controlling 2.7 percent of total deposits; the four-firm concentration ratio would be 65.9 percent; and the HHI would decrease to 1526. Upon consummation of this proposal, Applicant would control 28.7 percent of the total deposits in the market, the four-firm concentration ratio would increase to 68.6 percent, and the HHI would increase by 140 points to 1666. 7. See Gainer Corporation, 70 FEDERAL RESERVE BULLETIN 439 1. Applicant, through its subsidiary, Freeport State Bank, Free- (1984). port, Illinois ("Freeport Bank"), currently controls Banks indirectly. 8. The Kewanee banking market is defined as all of Bureau County Freeport Bank acquired Banks on April 25, 1984, from their former and all of Henry County, except for the townships of Western, principals in satisfaction of debts previously contracted in good faith. Colona, Edford, Hanna, and Geneseo, all in Illinois. 2. All banking data are as of June 30, 1983. 9. The Rockford banking market is defined as all of Boone and 3. The Freeport banking market is defined as Stephenson County, Winnebago Counties, plus the townships of Marion, Scott, Byron, and Illinois. Monroe in Ogle County, all in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 735 either of these markets, and accordingly, consumma- the voting shares of Georgia Interchange Network, tion of this proposal would have no effect on existing Inc. ("GIN Network"), Atlanta, Georgia, a joint vencompetition in those markets. In addition, consumma- ture to engage de novo in data processing and related tion of this proposal would have no significant effect activities. The GIN Network will operate an electronic on probable future competition in the Kewanee or funds transfer ("EFT") system for interchanging fi- Rockford banking markets. nancial transactions throughout the state of Georgia. The financial and managerial resources of Applicant The Board has previously determined that participaand its subsidiaries are generally satisfactory and their tion in a joint venture to operate an EFT system is prospects appear favorable. The financial and manage- closely related to banking and permissible under secrial resources of Banks would be enhanced by this tion 225.25(b)(7) (12 C.F.R. § 225.25(b)(7)(i) and (ii)) of proposal and their prospects appear favorable, espe- Regulation Y. See e.g., Atlantic Bancorporation, cially in light of certain commitments made by Appli- et al., 69 FEDERAL RESERVE BULLETIN 639 (1983). cant. Applicant has proposed several new services for Notice of the application, affording opportunity for Banks, including investment advisory services, dis- interested persons to submit comments and views, has count brokerage services, farm management services, been duly published. 49 Federal Register 13426 student loans, credit card services, overdraft checking (April 4,1984). The time for filing comments and views services, credit insurance services, and ATM facili- has expired and the Board has considered the applicaties. In addition, Applicant plans to expand the Banks' tion and all comments received in light of the factors trust, data processing, checking, and deposit services. set forth in section 4(c)(8) of the BHC Act. Accordingly, the Board has concluded that factors On June 25, 1984, the Board approved the applicarelating to the convenience and needs of the communi- tions of seven bank holding companies for each also to ties to be served lend weight toward approval of this acquire an 8.33 percent interest in the GIN Network. proposal and outweigh any adverse competitive effects See CB&T Bancshares, Inc., et al./Georgia Interof this proposal. change Network, Inc., 70 FEDERAL RESERVE BULLE- Based on the foregoing and other facts of record, the TIN 589 (1984) ("CB&T Order").' The purpose of the Board has determined that consummation of this pro- instant application is to allow Applicant to become an posal is in the public interest and that the application additional equity participant in the GIN Network. should be and hereby is approved for the reasons Applicant incorporates by reference the record of summarized above. those applications, and has committed to abide by the By order of the Board of Governors, effective terms and conditions of the CB&T Order. August 29, 1984. Upon a review of the record of this application and the record reflected in the related CB&T Order, the Voting for this action: Vice Chairman Martin and Gover- Board concludes that consummation of this de novo nors Wallich, Partee, Gramley, and Seger. Absent and not joint venture proposal would not result in any signifivoting: Chairman Volcker and Governor Rice. cantly adverse effects on existing or probable future competition. Approval of this application and opera- JAMES MCAFEE tion of the joint venture also can reasonably be expect- [SEAL] Associate Secretary of the Board ed to produce benefits to the public through the addition of a new provider of data processing services and an alternative EFT interchange in Georgia, as well Orders Issued Under Section 4 of Bank Holding as providing increased individual access to automated Company Act teller machines and point of sale terminals throughout Georgia. First City Bancorp, Inc. There is no evidence in the record in this case Marietta, Georgia indicating that consummation of the present proposal would result in undue concentration of resources, Order Approving Acquisition of Shares unfair competition, conflicts of interests, unsound in Georgia Interchange Network, Inc. banking practices or other adverse effects. Based upon First City Bancorp, Inc., Marietta, Georgia, a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act") (12 U.S.C. 1. The remaining 8.33 percent owners of the GIN Network are: Georgia Telco Credit Union, Atlanta, Georgia; DFS Services, Inc., a § 1841 et seq.), has applied for the Board's approval wholly owned subsidiary of Decatur Federal Savings and Loan under section 4(c)(8) of the BHC Act (12 U.S.C. Association, Decatur, Georgia; a wholly owned subsidiary of Fulton Federal Savings and Loan Association, Atlanta, Georgia; and a § 1843(c)(8)) and section 225.23 of the Board's Regulawholly owned subsidiary of Georgia Federal Bank, F.S.B., Atlanta, tion Y (12 C.F.R. § 225.23), to acquire 8.33 percent of Georgia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 Federal Reserve Bulletin • September 1984 the foregoing and other facts of record, the Board ("FIC"), and North State Investment Corporation, concludes that the balance of public interest factors it Highland Park, Illinois ("North State") (collectively, must consider under section 4(c)(8) favors approval of "Applicants"), all bank holding companies within the this application. In addition, the financial and manage- meaning of the Bank Holding Company Act rial resources and future prospects of Applicant are (12 U.S.C. § 1841 et seq.) ("Act"), have applied for considered consistent with approval. the Board's approval under section 4(c)(8) of the Act Accordingly, the Board concludes that approval of (12 U.S.C. § 1843(c)(8)) and section 225.21(a) of the this application is in the public interest and has deter- Board's Regulation Y (12 C.F.R. § 225.21(a)) to jointly mined that the application should be approved. This establish Interfinancial Funding Corporation, Chicadetermination is subject to the conditions set forth go, Illinois ("Company"), a de novo company.1 Comin Regulation Y, including sections 225.4(d) and pany would engage in commercial finance company 225.23(b)(3), to the terms and conditions of the CB&T activities, including the making, acquiring and servic- Order that are expressly incorporated herein by refer- ing of loans or other extensions of credit for Compaence, and to the Board's authority to require such ny's account or for the account of others, and in modification or termination of the activities of a bank factoring. All of the activities proposed by Applicants holding company or its subsidiaries as the Board finds are included on the list of permissible nonbanking necessary to assure compliance with the provisions activities for bank holding companies in Regulation Y and purposes of the Act and the Board's regulations (12 C.F.R. § 225.25(b)(1)).2 and orders issued thereunder or to prevent evasion Notice of the application, affording interested perthereof. sons an opportunity to submit comments, has been Consummation of this transaction shall not be made duly published (49 Federal Register 21989 (1984)). The later than three months after the effective date of this time for filing comments has expired, and the Board Order, unless such period is extended for good cause has considered the application and all comments reby the Board or by the Federal Reserve Bank of ceived in light of the public interest factors set forth in Atlanta pursuant to delegated authority. section 4(c)(8) of the Act. By order of the Board of Governors, effective Applicants are affiliated with one another through August 6, 1984. common ownership.3 Together they control aggregate deposits of $687.5 million, which represents 0.7 per- Voting for this action: Chairman Volcker and Governors cent of the total deposits in commercial banks in Martin and Partee. Abstaining from this action: Governors Illinois.4 All of Applicants' subsidiary banks operate in Wallich and Gramley. Absent and not voting: Governors Rice the Chicago banking market.5 If their deposits were and Seger. aggregated, Applicants would be the eighth largest of 321 banking organizations in the Chicago banking WILLIAM W. WILES market, controlling one percent of the total deposits in [SEAL] Secretary of the Board commercial banks therein. It is the Board's judgment that consummation of this proposal would have no First Highland Corporation adverse effects upon competition in any relevant area. Highland Park, Illinois Elk Grove Investment Corporation Elk Grove Village, Illinois Financial Investments Corporation 1. First Highland would own 32 percent of Company's shares, while Elk Grove, FIC, and North State would own 20.7,16.9, and 10.4 Chicago, Illinois percent, respectively. In addition, Company's President and Chief Executive Officer, Mr. Lawrence H. Tayne, would control 20 percent of Company's shares. North State Investment Corporation 2. Approximately 97 percent of Company's loans would be partici- Highland Park, Illinois pated to Applicants' subsidiary banks, as well as to non-affiliated banks in certain cases. Thus, Company would function primarily as a loan origination and servicing organization for Applicants' subsidiary Order Approving Acquisition of Interfinancial banks, rather than as a credit-extending company. Funding Corporation 3. A fifth bank holding company, Woodfield Investment Corporation, Schaumburg, Illinois, is also affiliated with Applicants through common ownership, but is not participating in this transaction. All First Highland Corporation, Highland Park, Illinois state and market share computations include the deposits of this ("First Highland"), Elk Grove Investment Corpora- affiliate. 4. All banking data are as of June 30, 1983. tion, Elk Grove Village, Illinois ("Elk Grove"), Finan- 5. The Chicago banking market is approximated by Cook, DuPage, cial Investments Corporation, Chicago, Illinois and Lake Counties, all in Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 737 Consummation of this proposal may be expected to Orders Issued Under Sections 3 and 4 of Bank result in public benefits inasmuch as Company, a Holding Company Act de novo corporation, would provide an additional and convenient source of commercial loan services. With Bank of Boston Corporation regard to financial considerations, the Board has ana- Boston, Massachusetts lyzed the chain organization on a consolidated basis and has analyzed the individual applicants on a con- Order Approving Acquisition of a Bank Holding solidated bank holding company basis pursuant to the Company and Companies Engaged in Insurance, Board's current and proposed guidelines regarding Mortgage Banking, Trust, and Investment capital adequacy.6 The Board finds that the level of Advisory Activities Applicants' capitalization is consistent with approval. The other financial and managerial resources of Bank of Boston Corporation, Boston, Massachusetts, Applicants, their subsidiary banks, and Company are a bank holding company within the meaning of the consistent with approval, and there is no evidence in Bank Holding Company Act of 1956, as amended the record to indicate that consummation of this (12 U.S.C. § 1841 et seq.) ("Act"), has applied for the proposal would result in undue concentration of re- Board's approval under section 3 of the Act (12 U.S.C. sources, unfair competition, conflicts of interests, § 1842), to acquire the successor by merger to RIHT unsound banking practices, or other adverse effects on Financial Corporation, Providence, Rhode Island the public interest. ("RIHT"), also a bank holding company.1 As a result Based on the foregoing and other facts of record, the of this transaction, Applicant would acquire RIHT's Board concludes that the balance of the public interest subsidiary banks, Rhode Island Hospital Trust Nationfactors it must consider under section 4(c)(8) of the al Bank and Columbus National Bank of Rhode Island, Act favors approval of the application. Accordingly, both located in Providence, Rhode Island. the Board has determined that the application should In addition, Applicant has applied for the Board's be and hereby is approved. This determination is approval under section 4(c)(8) of the Act (12 U.S.C. subject to all the conditions set forth in the Board's § 1843(c)(8)) and section 225.23(a)(2) of the Board's Regulation Y, including those in sections 225.4(d) and Regulation Y (12 C.F.R. § 225.23(a)(2)) to acquire 225.23(b), and to the Board's authority to require such RIHT's nonbanking subsidiaries: RIHT Life Insurmodification or termination of the activities of a bank ance Company, Phoenix, Arizona ("RIHT Life Insurholding company or any of its subsidiaries as the ance"), which underwrites credit life and credit acci- Board finds necessary to assure compliance with the dent and health insurance directly related to provisions and purposes of the Act and the Board's extensions of credit by subsidiaries of RIHT; RIHT regulations and orders issued thereunder, or to pre- Mortgage Corporation, Charlotte, North Carolina vent evasion thereof. ("RIHT Mortgage"), which engages in mortgage The transaction shall be consummated not later than banking activities; The Washington Row Company, three months after the effective date of this Order, Providence, Rhode Island ("Washington Row"), an unless such period is extended for good cause by the inactive company that formerly engaged in mortgage Board or by the Federal Reserve Bank of Chicago, banking activities; Hospital Trust of Florida, N.A., acting pursuant to delegated authority. Palm Beach, Florida ("HT Florida"), which engages By order of the Board of Governors, effective in trust company activities; and HT Investors, Inc., Providence, Rhode Island ("HT Investors"), which August 13, 1984. provides investment advisory services. These activi- Voting for this action: Chairman Volcker and Governors ties have been determined by the Board to be closely Martin, Wallich, Partee, and Gramley. Absent and not vot- related to banking and permissible for bank holding ing: Governors Rice and Seger. companies (12 C.F.R. § 225.25(b)(1), (3), (4), and (9)). WILLIAM W. WILES [SEAL] Secretary of the Board 1. Applicant has also applied under section 3(a)(1) of the Act (12 U.S.C. § 1842(a)(1)) for approval for its wholly owned inactive 6. "Revision of Regulation Y," 70 FEDERAL RESERVE BULLETIN subsidiary, Rhode Island Holding Company ("RIHC"), to become a 144-145, "Appendix A—Capital Adequacy Guidelines"; and Pro- bank holding company by merging with RIHT. RIHC is of no posed Rulemaking, "Capital Maintenance" (49 Federal Register significance except as a means to facilitate Applicant's acquisition of 30317 (1984). the voting shares of RIHT. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

738 Federal Reserve Bulletin • September 1984 Notice of these applications, affording opportunity representing 15.9 percent of the total deposits in for interested persons to submit comments, has been commercial banks in the market. Applicant is the 15th given in accordance with sections 3 and 4 of the Act largest commercial banking organization in the market (49 Federal Register 11013 (1984)). The time for filing with $7.8 million in deposits, representing 0.1 percent comments has expired, and the Board has considered of the total deposits in commercial banks in the the applications and all comments received in light of market. Upon consummation of the proposed transacthe factors set forth in section 3(c) of the Act tion, Applicant would become the third largest bank- (12 U.S.C. § 1842(c)) and the considerations set forth ing organization in the Providence banking market, in section 4(c)(8) of the Act, including the comments of with a market share of approximately 16 percent of the a shareholder of RIHT and of Citicorp, New York, total deposits in commercial banks in the market. New York, challenging the constitutionality of the The proposed acquisition would eliminate some Rhode Island statute under which the proposed acqui- existing competition in the Providence banking marsition is to be made. ket. The market, however, is not highly concentrated, Applicant is, and would remain upon consumma- with the four largest banking organizations controlling tion, the largest commercial banking organization in 70.6 percent of the total deposits in commercial banks New England. Applicant, the largest commercial and a Herfindahl-Hirschman Index ("HHI") of 1738. banking organization in Massachusetts with consoli- Upon consummation of this proposal, the market's dated assets of $19.5 billion, controls nine banking four-firm concentration ratio would increase to 70.7 subsidiaries holding aggregate domestic deposits of percent and the HHI would increase only 3 points, to $6.2 billion in the Commonwealth, representing 20.2 1741.5 In view of this small increase in market concenpercent of the total deposits in commercial banks in tration and of the number and size of the remaining Massachusetts.2 On March 30, 1984, Applicant con- banking competitors in the market, consummation of summated its acquisition of Casco-Northern Corpora- this proposal would not have a significantly adverse tion, Portland, Maine, thereby becoming the second effect on competition in the Providence banking marlargest commercial banking organization in Maine. Its ket. one banking subsidiary in Maine has total domestic In the Fall River banking market,6 Applicant is the deposits of $631 million, representing 17.9 percent of largest of nine commercial banking organizations in the total deposits in commercial banks in Maine.3 the market with $96.3 million in deposits therein, RIHT, the second largest commercial banking organi- representing 24.9 percent of the total deposits in zation in Rhode Island with consolidated assets of $1.9 commercial banks in the market. RIHT is the eighth billion, controls two subsidiary banks holding aggre- largest commercial banking organization in the market gate domestic deposits of $1.6 billion, representing with $5.7 million in deposits, representing 1.5 percent 25.9 percent of the total deposits in commercial banks of the total deposits in commercial banks in the in Rhode Island. market. Upon consummation of this proposal, Appli- Applicant's subsidiary banks compete directly with cant would remain the largest commercial banking RIHT's subsidiary banks in two banking markets: the organization in the Fall River banking market, with a Providence, Rhode Island, and Fall River, Massachu- market share of approximately 26.3 percent of the setts, banking markets. RIHT is the third largest of 17 deposits in commercial banks in the market. The Fall commercial banking organizations in the Providence River market is concentrated, with a four-firm concenbanking market4 with $1.2 billion in deposits therein, tration ratio of 81.8 percent and an HHI of 1917. Upon consummation of the proposal, the market's four-firm concentration ratio would increase to 83.3 percent and the HHI would increase 75 points to 1992.7 2. Banking data are as of December 31, 1983, unless otherwise indicated. 3. In addition, on May 18, 1984, the Board approved Applicant's application to acquire Colonial Bancorp, Inc., Waterbury, Connecticut, which has consolidated assets of $1.4 billion and total domestic 5. Under the Department of Justice Merger Guidelines, a market in deposits of $1.2 billion. Upon consummation of that acquisition, which the post-merger HHI is between 1000 and 1800 is considered Applicant would become the fourth largest banking organization in moderately concentrated. In such markets, the Department of Justice Connecticut. The Board has, however, stayed its approval of that is unlikely to challenge a merger that produces an increase in the HHI application pending the completion of judicial review of the Board's of less than 100 points. Order. 6. The Fall River banking market includes the southwestern part of 4. The Providence banking market includes all of Rhode Island, Bristol County, Massachusetts, and the towns of Little Compton and except for the southwestern part of Washington County and the Tiverton in Rhode Island. Market data are as of June 30, 1983. eastern part of Newport County, and in addition includes the City of 7. Under the Department of Justice Merger Guidelines, where the Attleboro and the towns of Blackstone, Millville, North Attleboro, post-merger HHI is 1800 or more, the Department will decide on a Norton, Plainville, Rehoboth, and Seekonk in Massachusetts. Market case-by-case basis whether to challenge a merger that produces an data for the Providence market is as of June 30, 1982. increase in the HHI of between 50 and 100 points. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 739 Although consummation of the proposed transac- significant adverse effects on probable future competition would eliminate existing competition in the Fall tion in any relevant market. River banking market, there are a number of factors There are nine banking markets in Massachusetts that mitigate the anticompetitive effects of this propos- and fourteen in Maine in which Applicant, but not al. Eight commercial banks would continue to operate RIHT, competes.11 With respect to the nine Massain the market after consummation, including the larg- chusetts banking markets in which Applicant operates, est banking organizations in Massachusetts and Rhode in eight of these markets the record discloses more Island. The Board also has considered the influence of than six commercial banking organizations as probable thrift institutions in evaluating the competitive effects future entrants into each of the markets. The ninth of this proposal.8 In the Fall River market, thrift Massachusetts banking market, the Boston market, is institutions control approximately 62 percent of the not highly concentrated. With respect to the fourteen total deposits in the market, and the deposits of each Maine banking markets in which only Applicant comof the three largest thrift institutions are substantially petes and the seven Connecticut banking markets into larger than those held by the largest commercial bank which Applicant's entry has been approved by the in the market. All six thrift institutions in the market Board, the record discloses numerous commercial offer a full range of consumer banking services. In banking organizations as probable future entrants into addition, all six make commercial real estate loans, each of these markets. On the basis of these considerand five of the six engage in limited commercial ations and other facts of record, the Board concludes lending activities. Based upon the size and activities of that the elimination of RIHT as a probable future thrift institutions in the Fall River banking market, the entrant into markets served by Applicant would not Board concludes that thrift institutions exert a signifihave a substantial anticompetitive effect in any of cant competitive influence that substantially mitigates those markets. the anticompetitive effects of the proposed trans- There is one banking market in Rhode Island (Newaction.9 port) and one in Connecticut (New London) in which After consideration of the above facts and other RIHT, but not Applicant, competes. With respect to facts of record, the Board concludes that consumma- these two banking markets, the record shows that tion of this proposal would not have a significant neither market is highly concentrated. On the basis of adverse effect on existing competition in any relevant this consideration and other facts of record, the Board market. concludes that elimination of Applicant as a probable The Board has considered the effects of this propos- future entrant into markets served by RIHT would not al on probable future competition and also has exam- have a substantial anticompetitive effect in any of ined the proposal in light of the Board's proposed those markets. guidelines for assessing the competitive effects of The financial and managerial resources and future market-extension mergers or acquisitions.10 In evalu- prospects of Applicant and RIHT are consistent with ating the effects of a proposal on probable future approval of this application. Considerations relating to competition, the Board considers market concentra- the convenience and needs of the communities to be tion, the number of probable future entrants into the served also are consistent with approval of the apmarket, the size of the bank to be acquired, and the plication. attractiveness of the market for entry on a de novo or Section 3(d) of the Act prohibits the Board from foothold basis absent approval of the acquisition. approving any application by a bank holding company After consideration of these factors in the context of to acquire any bank located outside of the state in the specific facts of this case, the Board concludes that which the operations of the bank holding company's consummation of this proposal would not have any banking subsidiaries are principally conducted, unless such acquisition is "specifically authorized by the statute laws of the State in which such bank is located, by language to that effect and not merely by implica- 8. The Board has previously determined that thrift institutions have tion." (12 U.S.C. § 1842(d)). Based upon its review of become, or at least have the potential to become, major competitors of commercial banks. NCNB Bancorporation, 70 FEDERAL RESERVE the Rhode Island interstate banking statute,12 the BULLETIN 225 (1984); Sun Banks, Inc., 69 FEDERAL RESERVE BULLE- Board concludes that Rhode Island has by statute TIN 934 (1983); First Tennessee National Corporation, 69 FEDERAL RESERVE BULLETIN 298 (1983). 9. If 50 percent of thrift deposits were included in the calculation of market concentration, the HHI would rise by only 22 points upon consummation of this proposal, from 1037 to 1059. 10. 47 Federal Register 9017 (March 3, 1982). Although the pro- 11. In addition, upon consummation of Applicant's acquisition of posed Policy Statement has not been adopted by the Board, the Board Colonial Bancorp, Inc., Applicant would compete in seven banking is using the proposed guidelines in its analysis of the effects of a markets in Connecticut, in none of which RIHT competes. proposal on probable future competition. 12. 1983 R.I. Pub. L. Ch. 201. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

740 Federal Reserve Bulletin • September 1984 expressly authorized, within the meaning of the Doug- In addition to seeking judicial review, the proteslas Amendment, a Massachusetts bank holding com- tants to the Bank of New England Corporation and pany, such as Applicant, to acquire a Rhode Island Hartford National Corporation applications obtained a bank or bank holding company, such as RIHT.13 stay of the Board's Orders from the Second Circuit This application raises a question under the United pending that Court's consideration of those cases. In States Constitution concerning the constitutionality of addition, following Citicorp's petition to the Board to a provision of the Rhode Island interstate banking stay its Order approving Bank of Boston Corporastatute that bars bank holding companies located out- tion's application to acquire Colonial Bancorporation, side of New England from acquiring banks in Rhode the Board issued a stay in reliance on the court- Island.14 The Board has addressed the constitutional- imposed stay in the previous cases. ity of parallel Connecticut and Massachusetts statutes Following the Second Circuit's decision in Northin its Orders approving three previous interstate acqui- east Bancorp, the Court on August 9 imposed a stay of sitions under those statutes.15 In its Bank of New its decision pending the Supreme Court's review of England Corporation Order, after review of the record these cases. As a result of the Court's action, the prior and in reliance on a detailed analysis of the constitu- interstate transactions approved by the Board may not tional issues included in an Appendix to the Order, the be consummated until final action by the Supreme Board concluded that, while the issue was not free Court. The Board, therefore, has considered whether from doubt, there was no clear and unequivocal basis to stay the effectiveness of its action on this applicafor a determination that the Connecticut statute is tion pending such final judicial action. The protestants inconsistent with the Constitution.16 in this case have not requested a stay, and, under Subsequent to the Board's approval of the three 5 U.S.C. § 705, the Board's authority to stay its action prior applications under the Connecticut and Massa- absent a petition for judicial review is not clear. chusetts interstate banking laws, protestants in each Consequently, the Board has determined not to stay, case sought judicial review of the Board's Orders on on its own motion, the effectiveness of its decision in the sole ground that the Connecticut and Massachu- this case. setts interstate banking laws are unconstitutional. Fol- Applicant has also applied, under section 4(c)(8) of lowing expedited review of the issues, the United the Act, to acquire the nonbanking subsidiaries of States Court of Appeals for the Second Circuit issued RIHT: RIHT Mortgage, RIHT Life Insurance, HT an opinion in Northeast Bancorp, Inc. v. Board of Florida, HT Investors, and Washington Row.18 RIHT Governors of the Federal Reserve System, Nos. 84- Mortgage, which engages in mortgage banking activi- 4047, 84-4051, 84-4053, and 84-4081 (2d Cir. Aug. 1, ties, competes directly with mortgage banking subsid- 1984), rejecting the petitioners' constitutional chal- iaries of Applicant in the following markets: Boston, lenges to the New England statutes and affirming the Massachusetts, Raleigh, North Carolina, and Atlanta, Board's Orders. The constitutional issues involved in Georgia. RIHT Mortgage's market share of mortgage BBC's current application are the same as those originations is not significant in any of these markets, resolved by the Second Circuit.17 and each market is unconcentrated in mortgage banking and has low barriers to entry in that product market. Thus, Applicant's acquisition of RIHT Mortgage would not eliminate any significant competition in any relevant market. 13. See Bank of New England Corporation, 70 FEDERAL RESERVE HT Florida provides personal trust services in Palm BULLETIN 374, 375 (1984), and Bank of Boston Corporation, 70 Beach County, Florida. Applicant engages in similar FEDERAL RESERVE BULLETIN 524 (1984). In these cases, an identical finding was made with respect to the parallel Connecticut interstate activities in Florida through its subsidiaries, Bank of banking statute. Boston Trust Company of Southeast Florida, N.A., 14. New England bank holding companies include those located in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Deerfield Beach, Florida (which also competes in and Vermont. Palm Beach County), and Bank of Boston Trust Com- 15. Bank of New England Corporation, supra; Bank of Boston Corporation, supra; Hartford National Corporation, 70 FEDERAL RESERVE BULLETIN 353 (1984). 16. Bank of New England Corporation, supra, 70 FEDERAL RE- SERVE BULLETIN at 376. It is the Board's policy that it will not hold a state law unconstitutional in the absence of clear and unequivocal evidence of the inconsistency of the state law with the United States Constitution. See NCNB Corp., 68 FEDERAL RESERVE BULLETIN 54, the Massachusetts and Connecticut statutes have no such termination 56 (1982). date. To the extent this fact alters the analysis of the Rhode Island 17. The only significant difference between the Rhode Island stat- statute, it adds an argument in favor of that statute's constitutionality ute and the other two New England interstate statutes is that the not present in the analysis of the other two statutes. Rhode Island statute terminates its provision restricting reciprocal 18. Washington Row is currently inactive and will be liquidated by interstate banking to other New England states on July 1, 1986, while Applicant. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 741 pany of Southwest Florida, N.A., Sarasota, Florida. Centennial Beneficial Corp. Together, Applicant's and RIHT's Florida trust sub- Orange, California sidiaries manage total combined assets of $85 million. The combined market share of Applicant and RIHT in Order Approving Formation of a Bank Holding any relevant market is quite small, and the Florida Company and Retention of Nonbanking Subsidiaries market for trust services is highly competitive, with numerous competitors and low barriers to entry. Ac- Centennial Beneficial Corp., Orange, California, has cordingly, consummation of this proposal would have applied fdr the Board's approval under section 3(a)(1) little effect on competition for trust services in any of the Bank Holding Company Act ("Act")(12 U.S.C. relevant market. § 1842(a)(1)) to become a bank holding company by After consideration of the above facts and other acquiring Sunwest Bank, Tustin, California ("Sunwest facts of record, the Board concludes that Applicant's Bank"), and Sacramento First National Bank, Sacraacquisition of RIHT's nonbanking subsidiaries would mento, California ("Sacramento Bank"). not have a significant adverse effect on competition in Applicant has also applied for the Board's approval any market. Furthermore, there is no evidence in the under section 4(c)(8) of the Act (12 U.S.C. record to indicate that approval of this proposal would § 1843(c)(8)) and section 225.23(a) of Regulation Y result in undue concentration of resources, unfair (12 C.F.R. § 225.23(a)), to engage in the activities of competition, conflicts of interest, unsound banking making, acquiring, and servicing loans and operating practices, or other adverse effects on the public inter- an industrial bank. These activities would be conductest. Accordingly, the Board has determined that the ed through Applicant's existing subsidiaries, Centenbalance of the public interest factors it must consider nial Beneficial Mortgage Company ("Mortgage Comunder section 4(c)(8) of the Act is favorable and pany"), Centennial Beneficial Loan Company ("Loan consistent with approval of the application to acquire Company"), and Centennial Mortgage Income Fund RIHT's nonbanking subsidiaries. ("CMIF"), all of Orange, California, Heritage Thrift Based on the foregoing and other facts of record, the and Loan Company ("Heritage"), and Chancellor Board has determined that the applications under Financial Services, Inc. ("Chancellor"), both of Brea, sections 3 and 4 of the Act should be and hereby are California. Mortgage Company and Chancellor are approved. The acquisition of RIHT's bank subsidiar- currently engaged in the activity of making, acquiring ies shall not be consummated before the thirtieth and servicing loans, while Loan Company, currently calendar day following the effective date of this Order inactive, and CMIF, currently in organization, would or later than three months after the effective date of engage in the activities of making, acquiring and this Order, unless such period is extended for good servicing loans upon consummation of these proposcause by the Board or by the Federal Reserve Bank of als. Heritage is engaged in the activities of a California Boston, pursuant to delegated authority. The approval thrift and loan company (an entity similar to an indusof Applicant's proposal to acquire RIHT's nonbanking trial bank). The Board has previously determined that activities is subject to all of the conditions contained in these activities are closely related to banking and are Regulation Y, including those in sections 225.4(d) and permissible for bank holding companies (12 C.F.R. 225.23(b)(3) (12 C.F.R. §§ 225.4(d) and 225.23(b)(3)), § 225.25(b)(1) and (2)). and to the Board's authority to require such modifica- Notice of the applications, affording opportunity for tion or termination of the activities of a holding interested persons to submit comments and views, has company or any of its subsidiaries as the Board finds been given in accordance with sections 3 and 4 of the necessary to assure compliance with the provisions Act. 49 Federal Register 17091 (April 23, 1984). The and purposes of the Act and the Board's regulations time for filing comments has expired, and the Board and orders issued thereunder, or to prevent evasion has considered the applications and all comments thereof. received in light of the factors set forth in section 3(c) By order of the Board of Governors, effective of the Act (12 U.S.C. § 1842(c)) and the considerations August 20, 1984. specified in section 4(c)(8) of the Act. Applicant, a financial services holding company, Voting for this action: Chairman Volcker and Governors has no banking subsidiaries. Sunwest Bank, with total Martin, Wallich, Partee, Rice, Gramley, and Seger. Governor deposits of approximately $142 million,1 is one of the Wallich abstained from the insurance portion of these applications. JAMES MCAFEE [SEAL] Associate Secretary of the Board 1. Banking data are as of June 30, 1984, unless otherwise indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

742 Federal Reserve Bulletin • September 1984 smaller commercial banks in the state of California. nonbank banks and industrial banks,4 the Board relied Sacramento Bank is a de novo bank in organization. on several conditions that were designed to prevent Consummation of this proposal would have no signifi- certain linkages between nonbank banks, industrial cant effect on the concentration of banking resources banks, and applicants. However, such conditions apin California. pear to be unnecessary in this case because Applicant Sunwest Bank is one of the smaller banks in the Los could acquire a full service bank in California. Angeles banking market.2 While neither Applicant nor There is no evidence in the record to indicate that its principals currently competes in commercial bank- Applicant's proposal to engage in nonbanking activiing in the Los Angeles market, Applicant, through ties through Mortgage Company, Loan Company, Mortgage Company, Chancellor, and Heritage, com- CMIF, Heritage, and Chancellor would result in any petes with Sunwest for loans in the Los Angeles undue concentration of resources, decreased or unfair banking market. Further, Applicant, through Heri- competition, conflicts of interests, unsound banking tage, competes with Sunwest for thrift accounts in the practices, or other adverse effects on the public inter- Los Angeles banking market. Some competition est. Accordingly, the Board has determined that the would be eliminated between Sunwest Bank and Ap- balance of public interest factors that it must consider plicant upon consummation of this proposal. Howev- under section 4(c)(8) is favorable and consistent with er, in view of the small shares of loans and thrift approval of the applications. accounts held by these entities in the Los Angeles On the basis of the record of the applications and the banking market, Applicant's acquisition of Sunwest foregoing, including the commitments made by Appli- Bank would have no significant effect on competition cant, the Board has determined that consummation of in that market. the proposal would be in the public interest and that Sacramento Bank will be located in the Sacramento the applications under sections 3(a)(1) and 4(c)(8) of banking market.3 The formation of Sacramento Bank the Act should be and hereby are approved. This would add a new source of banking services to the determination is subject to the conditions set forth in Sacramento banking market, and increase competition this Order and in section 225.4(d) and 225.23(b) of in that banking market. Regulation Y (12 C.F.R. §§ 225.4(d) and 225.23(b)), The financial and managerial resources of Appli- and the Board's authority to require such modification cant, its subsidiaries, Sunwest Bank, and Sacramento or termination of the activities of a bank holding Bank are regarded as generally satisfactory and their company or any of its subsidiaries as the Board finds prospects appear favorable, especially in light of Ap- necessary to assure compliance with the provisions plicant's commitment to inject capital into Sunwest and purposes of the Act and the Board's regulations Bank. As discussed above, the formation of Sacra- and orders issued thereunder, or to prevent evasion mento Bank will add a new source of banking services thereof. in the Sacramento banking market. Accordingly, con- The acquisition of Sunwest Bank and Sacramento siderations relating to the convenience and needs of Bank shall not be consummated before the thirtieth the communities are consistent with approval of the calendar day following the effective date of this Order, applications. nor shall the transactions be consummated later than Applicant has committed to the Board that Heritage, three months after the effective date of this Order, and which currently engages in making commercial loans, Sacramento Bank shall be opened for business not will not accept demand deposits, including NOW later than six months after the effective date of this accounts, without the prior approval of the Board. Order, unless such periods are extended for good Accordingly, Heritage would not be a "bank" within cause by the Board or the Federal Reserve Bank of the meaning of section 2(c) of the Act (12 U.S.C. San Francisco, pursuant to delegated authority. § 1841(c)). In recent cases involving the acquisition of By order of the Board of Governors, effective August 20, 1984. Voting for this action: Chairman Volcker and Governors Martin, Wallich, Partee, Rice, Gramley, and Seger. JAMES MCAFEE [SEAL] Associate Secretary of the Board 2. The Los Angeles banking market is defined as the Los Angeles RMA. 4. Nevada First Development Corporation, 70 FEDERAL RESERVE 3. The Sacramento banking market is defined as the Sacramento BULLETIN 469 (1984); U.S. Trust Company, 70 FEDERAL RESERVE RMA. BULLETIN 371 (1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 743 National City Corporation control aggregate deposits of $4.3 billion,2 represent- Cleveland, Ohio ing 8.4 percent of total deposits in commercial banks in the state. BOC is the second largest commercial Order Approving the Merger of Bank Holding banking organization in the state, with two banking Companies and the Acquisition of Companies subsidiaries that control aggregate deposits of $4.9 Engaged In Leasing, Insurance, Mortgage Banking, billion, representing 9.4 percent of total deposits in Trust Services, Investment Advice and Equity commercial banks in the state. Upon consummation of Financing Activities the proposed acquisition and all planned divestitures, Applicant's share of total deposits in commercial National City Corporation, Cleveland, Ohio, a bank banks in the state would increase to approximately $9 holding company within the meaning of the Bank billion, representing 17.2 percent of statewide depos- Holding Company Act ("Act"), has applied for the its, and Applicant would become the largest commer- Board's approval under section 3(a)(5) of the Act cial banking organization in the state. (12 U.S.C. § 1842(a)(5)), to merge with BancOhio Although the Board is concerned about the effect of Corporation, Columbus, Ohio ("BOC"), and thereby the merger of the second and fourth largest commerindirectly to acquire BancOhio National Bank, and cial banking organizations in Ohio on the concentra- The Ohio State Bank, both of Columbus, Ohio. tion of banking resources within the state, certain Applicant also has applied for the Board's approval circumstances mitigate that concern. Following conunder section 4(c)(8) of the Act (12 U.S.C. summation of the proposal, the share of commercial § 1843(c)(8)) and section 225.23(a)(2) of the Board's bank deposits held by the four largest commercial Regulation Y (12 C.F.R. § 225.23(a)(2)), to acquire the banking organizations in Ohio would increase to 45.7 following nonbank subsidiaries of BOC: Franklinton percent and Ohio would remain only moderately con- Assurance Company, Columbus, Ohio, engaged in the centrated. In addition, 10 other multibank holding reinsurance of credit life insurance directly related to companies with deposits over $1 billion would remain extensions of credit by banking subsidiaries of Banc- after consummation of the proposal. Ohio; BancOhio Mortgage Company, with offices in Applicant's subsidiary banks compete directly with Columbus, Akron, Cleveland, Cincinnati, and Dayton, BOC's subsidiary banks in nine banking markets: the Ohio, engaged in residential mortgage banking activi- Akron, Canton, Cleveland, Columbus, Dayton, Fulties; W. Lyman Case and Company, with offices in ton, Salem, Sandusky, and Toledo banking markets. Columbus, Ohio, and Miami, Florida, engaged in In three of these markets, Salem, Sandusky and Fulcommercial mortgage banking activities; BancOhio ton,3 Applicant will divest all of BOC's banking of- Leasing Company, Columbus, Ohio, engaged in originating and servicing leases for BancOhio National Bank; Midwest Econometrics, an inactive company Ohio (renamed National City Bank, Akron ("NCB-A")), challenging that formerly engaged in investment advice activities; the community reinvestment records of Applicant's lead bank in Cleveland and of the Goodyear Bank. ACCR has asked the Board to and Plaza Trust Company, Columbus, Ohio, engaged "closely review" this application, indicating that Applicant has made in trust company activities. These activities have been "little progress" in its lending practices in Akron. The Board has determined by the Board to be closely related to reviewed the submissions of ACCR, Applicant's response, NCB-A's Home Mortgage Disclosure Act data, and its CRA examination banking and permissible for bank holding companies reports. This review indicates that since 1983 Applicant has increased (12 C.F.R. § 225.23(b)(1), (3), (4), (5), (9), and (14)). its lending to low- and moderate-income neighborhoods in the Akron Notice of the applications, affording opportunity for market at a time when NCB-A's total loan volume was falling and lending by other institutions to such neighborhoods was declining. interested persons to submit comments, has been Moreover, when the Board approved Applicant's 1982 application, given in accordance with sections 3 and 4 of the Act the Board accepted certain commitments by Applicant with regard to Goodyear Bank's future operations. The record indicates that these (49 Federal Register 21990 and 29688 (May 24 and July commitments, which include increased advertising in low- and moder- 23, 1984)). The time for filing comments has expired, ate-income neighborhoods, financial counseling for community resiand the Board has considered the applications and all dents, increased attendance at community meetings by Applicant's personnel, and increased input from community groups in Applicant's comments received in light of the factors set forth in community, have been met by Applicant. section 3(c) of the Act (12 U.S.C. § 1842(c)) and the 2. Unless otherwise indicated, deposit data are as of December 31, considerations specified in section 4(c)(8) of the Act.1 1983. 3. The Salem banking market is approximated by the northern two- Applicant is the fourth largest commercial banking thirds of Columbiana County plus Green, Goshen and a portion of organization in Ohio with 12 subsidiary banks that Beaver Township in Mahoning County. The Sandusky banking market is approximated by all of Erie County except the City of Vermilion. The Fulton County banking market is approximated by all of Fulton County, except the eastern half of Swan Creek Township 1. The Board received comments from the Akron Coalition for and the southeastern quadrant of Fulton Township, and the southern Community Reinvestment, Akron, Ohio ("ACCR"). In 1982, ACCR half of Seneca, Fairfield, and Ogden Townships in Lenawee County, protested Applicant's application to acquire Goodyear Bank, Akron, Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

744 Federal Reserve Bulletin • September 1984 fices.4 Applicant has committed that all of the pro- share of deposits held by the market's four largest posed divestitures will take place on or before the date commercial banking organizations would increase to of consummation of the proposed merger.5 Applicant 82.5 percent. also has committed to divest its bank, The Fairfield The Board has considered the presence of 20 thrift National Bank of Lancaster, that operates in the institutions in the market that hold deposits of $1.6 Columbus market.6 Therefore, the Board finds that billion, which is approximately 38.4 percent of the consummation of this proposal would have no signifi- total deposits in the market. The Board has previously cant adverse effect upon competition in these markets. indicated that thrift institutions have become, or at In the Akron banking market,7 Applicant proposes least have the potential to become, major competitors to divest 16 of BOC's 30 banking offices.8 Applicant is of commercial banks.9 Thrift institutions already exert the fourth largest commercial banking organization in a considerable competitive influence in the market as the market, with 12 offices that control total deposits providers of NOW accounts and consumer loans, and of $241.5 million, representing 9.4 percent of the total many also are engaged in the business of making deposits in commercial banks in the market. Current- commercial loans.10 Based upon the number, size and ly, BOC is the market's third largest commercial market shares of these institutions in the Akron marbanking organization, with $448.9 million in deposits, ket, the Board has concluded that thrift institutions representing 17.6 percent of the total deposits in exert a significant competitive influence that substancommercial banks in the market. The Akron banking tially mitigates the anticompetitive effects of this market contains 11 banks and is highly concentrated, proposal. with the four largest commercial banking organiza- Applicant and BOC compete in four markets in tions in the market controlling 79.2 percent of the which no divestitures are proposed: the Canton, deposits in commercial banks in the market. After Cleveland, Dayton, and Toledo banking markets. Alconsummation of the proposed divestiture, Applicant though consummation of this proposal would eliminate would control approximately 21.7 percent of the total some existing competition between Applicant and deposits in commercial banks in the market, and the BOC in these markets, certain facts of record mitigate the competitive effects of the proposal in these markets. In the Canton banking market,11 Applicant con- 4. Applicant proposes to divest the Salem offices of BOC to the trols only 0.2 percent of total deposits in commercial Potters Bank and Trust Company, East Liverpool, Ohio. Toledo banks in the market, and BOC controls only 1.3 Trustcorporation, Toledo, Ohio ("Toledo"), through its subsidiaries, First Buckeye Bank, N.A., Mansfield, Ohio and Maumee Valley percent of market deposits. Upon consummation, Ap- National Bank, Defiance, Ohio, would acquire BOC's Sandusky and plicant would become the eighth largest banking orga- Fulton County offices, respectively. The Board is concerned that Toledo's acquisition of the Fulton County offices would cause its nization and its market share would increase to 1.5 share of deposits in the market to increase from 8.9 percent to 19.7 percent. The Herfindahl-Hirschman Index ("HHI") percent, and would cause the HHI to increase by 192 to 2344. The would increase by only five points as a result of the Board's concerns are mitigated, however, by the presence of four thrift institutions in the market, two of which, the third and fifth proposal. largest competitors in the market, actively engage in making commer- In the Toledo banking market, Applicant controls cial loans. In addition, Applicant solicited bids for the purchase of the Fulton branches from a total of 44 commercial banking organizations, the third largest commercial banking organization in thrift institutions and investors in Ohio. Of the two bids received, the market, with 18.1 percent of the deposits in Toledo's bid was the least anticompetitive. commercial banks in the market.12 BOC controls ap- 5. The Board's policy with regard to divestitures requires that divestitures intended to cure the anticompetitive effects resulting from a merger or acquisition occur on or before the date of consummation of the merger. Barnett Banks of Florida, Inc., 68 FEDERAL RESERVE 9. The Chase Manhattan Corporation, 70 FEDERAL RESERVE BUL- BULLETIN 190 (1982); InterFirst Corporation, 68 FEDERAL RESERVE LETIN 529 (1984); NCNB Bancorporation, 70 FEDERAL RESERVE BULLETIN 243 (1982). BULLETIN 225 (1984); General Bancshares Corporation, 69 FEDERAL 6. The Columbus banking market is approximated by all of Frank- RESERVE BULLETIN 802 (1983); First Tennessee National Corporalin, Fairfield, Licking, Delaware, and Pickaway Counties plus Perry tion, 69 FEDERAL RESERVE BULLETIN 298 (1983). Township in Hocking County and Thorn Township in Perry County. 10. If 25 percent of the deposits in thrift institutions in the Akron Based upon the particular facts and circumstances of this case, the banking market are included in the calculation of market concentra- Board believes that Applicant's commitment to divest its bank tion, the share of total deposits held by the four largest organizations promptly is sufficient to alleviate its concerns regarding the competi- in the market is 71.4 percent and Applicant's combined share would tive effects of the proposed merger. be 18.8 percent. 7. The Akron banking market is defined as the southern two-thirds 11. The Canton banking market is approximated by all of Stark of Summit and Portage Counties, southern Medina County, Milton County, except Lawrence and the western half of Lake Township; and Chippewa townships in Wayne County and Lawrence and the Smith Township in Mahoning County ; the northern tier of Carroll western half of Lake Township in Stark County. County; and Lawrence and Sandy Townships in Tuscarawas County. 8. Society National Bank, a subsidiary of Society Corporation, will 12. The Toledo banking market is approximated by all of Lucas and acquire the 16 offices, representing 5.3 percent of the market's Wood Counties, plus the eastern half of Swan Creek Township and deposits. Society currently controls 2.8 percent of the deposits in the southeastern quadrant of Fulton Township in Fulton County; the commercial banks in the market and upon consummation would western third of Ottawa County; Woodville Township in Sandusky control 8.1 percent of the market's deposits. All market deposit data County, Ohio; and Whiteford, Bedford and Erie Townships in Monroe are as of June 30, 1982. County, Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 745 proximately 1.6 percent of market deposits. The mar- actively engaged in commercial lending, mitigates the ket is moderately concentrated, with an HHI of 1707. competitive effects of the transaction. These institu- After consummation, Applicant would become the tions hold combined deposits of $9.2 billion, or apsecond largest commercial banking organization in the proximately 44.1 percent of total deposits in the marmarket, with a market share of approximately 19.7 ket. As noted above, the Board has previously percent. Eighteen commercial banks would continue indicated that thrift institutions have become, or at to operate in the market after consummation of the least have the potential to become, major competitors proposal and the HHI would increase by only 59 of commercial banks. Based upon the number, size points.13 and market shares and commercial lending activity of The Dayton banking market is concentrated, with an thrift institutions in the Cleveland market, the Board HHI of 1866 and the four largest commercial banking has concluded that thrift institutions exert a significant organizations controlling 77 percent of total deposits in competitive influence that mitigates the anticompeticommercial banks in the market.14 Applicant controls tive effects of this proposal in the Cleveland market. the third largest commercial banking organization in On the basis of the above facts and other facts of the market, with 16.4 percent of the deposits in record, the Board concludes that the effects of concommercial banks in the market. BOC controls 1.4 summation of the proposal would not have a substanpercent of market deposits. After consummation, Ap- tial adverse effect on existing competition in the Canplicant's rank would remain the same, and Applicant ton, Cleveland, Dayton, or Toledo banking markets. would control approximately 17.8 percent of the de- The Board has considered the effects of this proposposits in commercial banks in the market. Nineteen al on probable future competition in the 31 markets in commercial banks would continue to operate in the which only one of the two holding companies commarket after consummation of the proposal and the petes and in the four markets in which divestitures will HHI would increase by only 44 points. occur in light of its proposed guidelines for assessing In the Cleveland banking market,15 Applicant is the the competitive effects of market extension mergers market's second largest commercial banking organiza- and acquisitions.16 In evaluating the effects of a protion with deposits of $2.2 billion, representing 19.3 posed merger or consolidation upon probable future percent of total deposits in commercial banks in the competition, the Board considers market concentramarket. BOC is the market's eighth largest commer- tion, the number of probable future entrants into the cial banking organization with $281.3 million in depos- market, the size and market position of the bank to be its, representing 2.4 percent of total deposits in com- acquired and the attractiveness of the market for entry mercial banks in the market. After consummation of on a de novo or foothold basis, absent approval of the the proposal, Applicant would control 21.7 percent of acquisition. total deposits in commercial banks in the market. Of the 35 relevant markets, 33 have more than six The Cleveland banking market is considered to be probable future entrants and thus none of these marmoderately concentrated. The HHI in the market is kets would require intensive analysis under the 1603 and would increase by 93 points to 1696 upon Board's proposed guidelines. Moreover, 22 of the 31 consummation of the proposal. Although consumma- markets contain fewer than $250 million in deposits tion of this proposal would eliminate some existing and thus are not considered markets that are attractive competition between Applicant and BOC in the Cleve- for de novo or toehold expansion. The remaining two land market, 20 other commercial banking organiza- markets are not considered concentrated and thus the tions would continue to operate in the market after doctrine of probable future competition is not applicaconsummation of this proposal. In addition, the pres- ble in these markets. ence of 35 thrift institutions, some of which are After consideration of these factors in the context of the specific facts of this case, the Board concludes that consummation of this proposal would not have any 13. Under the Department of Justice Merger Guidelines, a market significant adverse effects on probable future competiin which the post-merger HHI is between 1000 and 1800 is considered tion in any relevant market. moderately concentrated. In such markets, the Department is unlikely to challenge an acquisition that results in an increase in the HHI of In evaluating this application, the Board has considless than 100 points. ered the financial and managerial resources of Appli- 14. The Dayton banking market is approximated by all of Montgomery, Greene and Miami Counties; Bethel and Mad River Townships in Clark County; and Clear Creek, Massie and Wayne Town- 16. "Policy Statement of the Board of Governors of the Federal ships in Warren County. Reserve System for Assessing Competitive Factors Under the Bank 15. The Cleveland banking market is approximated by all of Cuya- Merger Act and the Bank Holding Company Act," 47 Federal hoga, Lake, Lorain and Geauga Counties; all but the southernmost Register 9017 (March 3, 1982). While the proposed policy statement tier of townships in Medina County; the northwestern corner of has not been approved by the Board, the Board is using the policy Portage County; the northern tier of townships in Summit County; and guidelines as part of its analysis of the effect of a proposal on probable the City of Vermilion in Erie County. future competition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

746 Federal Reserve Bulletin • September 1984 cant and the effect on these resources of the proposed and other facts of record, including the current and pro merger with BOC. The Board has stated and continues forma financial condition of Applicant, the Board to believe that capital adequacy is an especially impor- concludes that the financial and managerial resources tant factor in the analysis of bank holding company and future prospects of Applicant, BOC and the comproposals, particularly in transactions where a signifi- bined organization are consistent with approval. cant acquisition is proposed.17 With regard to considerations relating to the conve- The acquisition of BOC represents a sizeable trans- nience and needs of the communities to be served, the action for Applicant, one that would almost double Board finds that such factors also are consistent with Applicant's size in terms of total assets. Financing for approval of the application. the proposed acquisition would be provided in part by Applicant also has applied, pursuant to section the issuance of Applicant's equity securities, but a 4(c)(8) of the Act, to acquire Franklinton Assurance substantial portion of the purchase price would be Company, Columbus, Ohio ("Franklinton"), a wholly debt-financed. Applicant's and BOC's existing pri- owned subsidiary of BOC which engages in the reinmary and total capital ratios (even after excluding surance of credit-related insurance associated with goodwill) are well above the minimum levels specified loans by BOC's subsidiary banks. Although Applicant in both the Board's current18 and proposed Capital currently engages in the the reinsurance of credit- Adequacy Guidelines.19 Consummation of the pro- related insurance, no adverse competitive effect would posed merger, however, would decrease significantly result from this acquisition because the activities of Applicant's primary capital ratio. Applicant already Franklinton would be limited to insurance directly has a substantial amount of goodwill and this acquisi- related to extensions of credit made by the subsidiaries tion would increase that amount further. If goodwill is of BOC. Applicant also has applied to acquire excluded, Applicant's primary capital ratio, on a pro BancOhio Mortgage Corporation, Columbus, Ohio forma basis, would be slightly above that required ("BOC Mortgage"), a company that engages in resiunder the Board's current Guidelines, but would fall dential mortgage banking activities in Ohio and below that contemplated under the proposed Guide- W. Lyman Case and Company, Columbus, Ohio, a lines. company that engages in mortgage banking activities The Board views with concern any decline in capital with regard to commercial real estate. Applicant presof the magnitude proposed here, particularly when, ently engages in mortgage banking activities through after consummation of the proposal, an applicant's pro its subsidiary banks in five of the markets where BOC forma capital ratios will be close to the minimum level Mortgage operates. There are numerous other competspecified in the Board's Guidelines, or where goodwill itors in these markets, however, and Applicant's acwill be a significant factor in an applicant's capital quisition of BOC Mortgage would not eliminate any base. The Board expects bank holding companies significant competition in any relevant market. contemplating expansion proposals to ensure that pro Applicant has applied to acquire BancOhio Leasing forma capital ratios exceed the Board's minimum Company, Columbus, Ohio, a company that engages standards and without significant reliance on goodwill. in the leasing of personal property. Applicant also In considering this proposal, the Board noted that proposes to acquire Plaza Trust Company, Columbus, Applicant has historically maintained a strong capital Ohio, an inactive company that is chartered to provide position, and will remain in overall sound financial custodial, trust management and other fiduciary sercondition with a capital position that is generally vices. Applicant also engages in the leasing of personal consistent with the Board's Guidelines. In addition, property and trust company activities. Numerous Applicant recognizes that its pro forma capital ratios bank and nonbank entities compete in these areas, and are lower than the ratios it has maintained in the past, there is little direct competition between Applicant and has indicated that because a strong capital position and BOC in this regard. Applicant also has applied to continues to be a primary objective of management, it acquire Midwest Econometrics, Columbu:, Ohio, an intends to augment its capital following the acquisition inactive company that formerly provided economic and will provide the Federal Reserve System with data and forecasts for its subscribers. Applicant does plans to strengthen its capital position. Based on these not engage in this activity, and thus its acquisition will not eliminate any existing competition. Accordingly, it does not appear that Applicant's 17. Chase Manhattan Corporation, 70 FEDERAL RESERVE BULLE- TIN 529 (1984); Banks of Mid-America, Inc., 70 FEDERAL RESERVE acquisition of these nonbanking subsidiaries would BULLETIN 460 (1984); Manufacturers Hanover Corporation, 70 FED- have any significant adverse effects upon competition ERAL RESERVE BULLETIN 452 (1984); NCNB Corporation, 69 FEDERin any market. Furthermore, there is no evidence in AL RESERVE BULLETIN 49 (1983). 18. Capital Adequacy Guidelines, (12 C.F.R. Part 225, Appen- the record to indicate that approval of this proposal dix A). would result in undue concentration of resources, 19. Proposed Minimum Capital Guidelines for Bank Holding Companies, 49 Federal Register 30317 (July 30, 1984). decreased or unfair competition, conflicts of interests, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 747 unsound banking practices, or other adverse effects on et seq.), to acquire all of the voting shares of a bank the public interest. Accordingly, the Board has deter- service corporation, Chem Network Processing Sermined that the balance of the public interest factors it vices, Inc., Somerset, New Jersey ("Company"). must consider under section 4(c)(8) of the Act is Company currently engages in data processing activifavorable and consistent with approval of the applica- ties under section 4(c)(8) of the Bank Holding Compation to acquire BOC's nonbanking subsidiaries. ny Act, 12 U.S.C. § 1841 et seq., and section Based on the foregoing and other facts or record, the 225.25(b)(7) of the Board's Regulation Y, 12 C.F.R. Board has determined that the applications under § 225.25(b)(7), as a wholly owned subsidiary of a bank sections 3 and 4 of the Act should be and hereby are holding company, Chemical New York Corporation, approved, subject to Applicant's commitments to di- New York, New York. Chemical Bank, the holding vest branches of BOC in the Akron, Fulton, Salem, company's lead banking subsidiary, proposes to acand Sandusky markets, and its bank in the Columbus quire Company, which would become a bank service market. The merger with BOC shall not be consum- corporation subject to the BSCA. In connection with mated before the thirtieth calendar day following the this proposal, Company has applied under section 5(b) effective date of this Order or later than three months of the BSCA for permission to provide data processing after the effective date of this Order, unless such services throughout the United States as a bank serperiod is extended for good cause by the Board or by vice corporation.1 the Federal Reserve Bank of Cleveland pursuant to Section 4(f) of the BSCA, 12 U.S.C. § 1864(f), delegated authority. The determinations as to Appli- provides that a bank service corporation may perform cant's nonbanking activities are subject to all of the at any geographic location any service, other than conditions contained in Regulation Y, including those deposit taking, that the Board has determined, by in sections 225.4(d) and 225.23(b)(3) (12 C.F.R. regulation, to be permissible for a bank holding com- §§ 225.4(d) and 225.23(b)(3)), and to the Board's pany under section 4(c)(8) of the Bank Holding Comauthority to require such modification or termination pany Act.2 Company would provide throughout the of the activities of a holding company or any of its United States data processing services to the extent subsidiaries as the Board finds necessary to assure those activities are generally permissible for bank compliance with the provisions and purposes of the holding companies under the Board's Regulation Y, Act and the Board's regulations and orders issued 12 C.F.R. § 225.25(b)(7). thereunder, or to prevent evasion thereof. Section 5(b) of the BSCA, 12 U.S.C. § 1865(b), By order of the Board of Governors, effective requires prior Board approval of any investment by an August 10, 1984. insured bank (as defined)3 in the capital stock of a bank service corporation that performs any service Voting for this action: Chairman Volcker and Governors under authority of section 4(f) of the BSCA. Section Martin, Wallich, Partee, and Gramley. Governor Wallich 5(b) of the BSCA also requires a Company that abstained from the insurance portion of this action. Absent becomes a bank service corporation under the BSCA and not voting: Governors Rice and Seger. to obtain the Board's approval before providing a service under authority of section 4(f) of the Act. WILLIAM W. WILES Section 5(c) of the BSCA, 12 U.S.C. § 1865(c), [SEAL] Secretary of the Board authorizes the Board, in acting upon applications to invest in bank service corporations, to consider the Orders Issued Under Section 5 of Bank Service financial and managerial resources of the institutions Corporation Act involved, their prospects, and possible adverse effects, such as undue concentration of resources, unfair Chemical Bank or decreased competition, conflicts of interest, or New York, New York unsafe or unsound banking practices. The Board finds that considerations relating to these factors are con- Chem Network Processing Services, Inc. Somerset, New Jersey 1. The proposal represents a corporate reorganization under which Order Approving Investment in a Bank Service ownership of Company is to be transferred from the parent bank Corporation holding company to its lead banking subsidiary. 2. Under section 4(c)(8) of the Bank Holding Company Act, a bank holding company may engage in activities determined by the Board to Chemical Bank, New York, New York, an insured be closely related to banking and a proper incident thereto. state member bank, has applied for the Board's ap- 3. Under section 1(b)(5) of the BSCA (12 U.S.C. § 1861(b)(5)), the term "insured bank" has the meaning provided in section 3(h) of the proval under section 5(b) of the Bank Service Corpora- Federal Deposit Insurance Act (12 U.S.C. § 1813(h)) and encompasses tion Act, as amended ("BSCA") (12 U.S.C. § 1861 banks insured by the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

748 Federal Reserve Bulletin • September 1984 sistent with approval and that there is no evidence of iaries and its mortgage company subsidiary through adverse effects. Company's offices in Orlando, Florida.2 Accordingly, on the basis of the record, the applica- Section 4(e) of the BSCA (12 U.S.C. § 1864(e)) tion is approved for the reasons summarized above. permits a bank service corporation to perform those This determination is subject to the Board's authority services that may be performed both by the state bank to require such modification or termination of the shareholders under the applicable state law and by the activities of a bank service corporation as the Board national bank shareholders under federal law, providfinds necessary to assure compliance with the BSCA ed that the services are performed only at locations in or to prevent evasions thereof. The transactions shall the state in which both the state bank and national be consummated within three months after the date of bank shareholders could be authorized to perform this Order, unless such period is extended for good such services. Applicants propose to engage through cause by the Board or the Federal Reserve Bank of Company in data processing activities in authorized New York. locations to the extent those activities are permissible By order of the Board of Governors, effective both for state banks under Florida law and for national August 14, 1984. banks under federal law. The services would be performed only in Florida, at locations where all the Voting for this action: Vice Chairman Martin and Gover- proposed shareholders of Company would be permitnors Wallich, Partee, Rice and Gramley. Absent and not ted to provide the services directly. voting: Chairman Volcker and Governor Seger. In order to consummate this proposal, Applicants are required under section 5(a) of the BSCA WILLIAM W. WILES (12 U.S.C. § 1865(a)) to obtain the prior approval of [SEAL] Secretary of the Board the "appropriate Federal banking agency." Congress has designated the Board as the appropriate Federal banking agency to approve applications by state mem- Sun Bank of Ocala ber banks to invest in bank service corporations Ocala, Florida acquired under the authority of section 4(e) of the BSCA.3 Sun Bank of Tampa Bay Section 5(c) of the BSCA (12 U.S.C. § 1865(c)) Tampa, Florida authorizes the Board, in acting upon applications to invest in bank service corporations, to consider the Order Approving Investment in a Bank Service financial and managerial resources of the institutions Corporation involved, their prospects, and possible adverse effects, such as undue concentration of resources, unfair Sun Bank of Ocala, Ocala, Florida, and Sun Bank of or decreased competition, conflicts of interests, or Tampa Bay, Tampa, Florida, insured state member unsafe or unsound banking practices. The Board finds banks, have applied for the Board's approval under that considerations relating to these factors are consection 5(a) of the Bank Service Corporation Act, as sistent with approval and that there is no evidence of amended ("BSCA") (12 U.S.C. § 1861 et seq.), to adverse effects. invest in 9.4 percent of the voting and nonvoting Accordingly, on the basis of the record, the applicapreferred stock of a bank service corporation, Suntions are approved for the reasons summarized above. bank Service Corporation, Orlando, Florida ("Company").1 Company is currently a wholly owned subsidiary of Sun Banks, Inc., Orlando, Florida ("Sun 2. The proposal represents a corporate reorganization under which Banks"), a multibank holding company. Applicants ownership of Company is to be transferred from Sun Banks to its are two of Sun Banks' 29 state and national bank banking subsidiaries. Applicants together with the other investing banks would acquire from Sun Banks all the voting shares of Compasubsidiaries that propose to jointly invest in all of the ny and would subscribe to a new issuance by Company of nonvoting capital stock of Company, which would provide data preferred stock. With the exception of two recently acquired banks, processing services to Sun Banks, its banking subsid- all of the banking subsidiaries of Sun Banks would be investors in Company. 3. Under section 1(b)(1) of the BSCA (12 U.S.C. § 1861(b)(1)), the Board is the appropriate Federal banking agency with respect to state member banks. The Comptroller of the Currency is the appropriate Federal banking agency with respect to the national bank investors under this proposal, and the Federal Deposit Insurance Corporation is the appropriate Federal banking agency with respect to the state nonmember bank investors. Sun Banks' national bank subsidiaries 1. Sun Bank of Ocala proposes to invest in 3.0 percent of Compa- and state nonmember bank subsidiaries have applied to their appropriny's shares, and Sun Bank of Tampa Bay proposes to invest in 6.4 ate agencies for prior approval of their proposed investments in percent. Company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 749 This determination is subject to the Board's authority By order of the Board of Governors, effective to require such modification or termination of the August 6, 1984. activities of a bank service corporation as the Board finds necessary to assure compliance with the BSCA Voting for this action: Chairman Volcker and Governors Martin and Partee. Abstaining from this action: Governors or to prevent evasions thereof. The transactions may Wallich and Gramley. Absent and not voting: Governors Rice not be consummated later than three months after the and Seger. date of this Order, unless the time is extended for good cause by the Board or the Federal Reserve Bank of WILLIAM W. WILES Atlanta. [SEAL] Secretary of the Board ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During August 1984 the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551 Section 3 Board action Applicant Bank(s) (effective date) First Citizens Bancshares Company, Citizens Bank, August 7, 1984 Marion, Arkansas Marion, Arkansas InterFirst Corporation, InterFirst Bank Westlake, N.A., August 10, 1984 Dallas, Texas Austin, Texas InterFirst Bank North Austin, N.A., Austin, Texas InterFirst Bank West Beaumont, N.A. Beaumont, Texas Royce Corporation, Manning Trust & Savings Bank, August 17, 1984 Council Bluffs, low Manning, Iowa Walnut State Bank, Walnut, Iowa By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date American Bank Corporation, American National Bank of Kansas City August 13, 1984 Denver, Colorado Evanston, Evanston, Wyoming American National Bancshares, American National Bank, Dallas August 3, 1984 Inc., Waco, Texas Waco, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin • September 1984 Section 3—Continued Applicant Bank(s) R"er ve Efffctive K Baunk date B. C. Bankshares, Inc., Bank of Canton, Atlanta August 15, 1984 Canton, Georgia Canton, Georgia BancEdmond, Inc., Bank of Edmond, N.A., Kansas City August 8, 1984 Edmond, Oklahoma Edmond, Oklahoma Bancenter One Group, Inc., Bankcenter One, St. Louis August 14, 1984 Ellisville, Missouri Ellisville, Missouri Bay Lake Bancorp, Inc., Union State Bank, Chicago August 13, 1984 Kewaunee, Wisconsin Kewaunee, Wisconsin C. S. Bancshares, Inc., Central State Bank, Chicago July 30, 1984 Connersville, Indiana Connersville, Indiana Charlotte Bancshares, Inc., Charlotte State Bank, Dallas July 25, 1984 Charlotte, Texas Charlotte, Texas Charter 17 Bancorp, Inc., Northwest National Bank, Chicago July 31, 1984 Richmond, Indiana Rensselaer, Indiana Citizens Bankshares, Inc., The Citizens State Bank, Kansas City July 27, 1984 Okemah, Oklahoma Okemah, Oklahoma Affiliated Bank of Sapulpa, N.A., Sapulpa, Oklahoma City National Bankcorp, Inc., The City National Bank, St. Louis July 31, 1984 Metropolis, Illinois Metropolis, Illinois Columbus Bancorp, Inc., Columbus Corporation, Chicago August 1, 1984 Columbus, Indiana Columbus, Indiana Columbus Bank and Trust Company, Columbus, Indiana Commercial Bancshares, Inc., Commercial Bank & Trust Atlanta July 27, 1984 Franklin, Louisiana Company, Franklin, Louisiana Community State Bankshares, Community State Bank, Chicago August 9, 1984 Inc., Wisconsin Rapids, Wisconsin Wisconsin Rapids, Wisconsin Continental Bancorp, Continental National Bank of Atlanta August 3, 1984 Miami, Florida Miami, Miami, Florida Continental Bancorporation, The First National Bank of St. Louis July 31, 1984 Inc., Sikeston, Sikeston, Missouri Sikeston, Missouri Dixon Bancorp, Inc., The Dixon National Bank, Chicago August 14, 1984 Dixon, Illinois Dixon, Illinois Elmore City Bancshares, Inc., First State Bank, Kansas City August 3, 1984 Elmore City, Oklahoma Elmore City, Oklahoma Erie Financial Corp., Erie State Bank, Chicago August 3, 1984 Detroit, Michigan Monroe, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 751 Section 3—Continued ,. n w \ Reserve Effective AApplicant Bank(s) Bank date F.N.B. Corporation, North Central Financial Cor- Cleveland August 1, 1984 Hermitage, Pennsylvania poration, Emporium, Pennsylvania Bucktail Bank and Trust Company, Emporium, Pennsylvania Farmers State Bancshares of Farmers State Bank, Kansas City August 10, 1984 Sabetha, Inc., Sabetha, Kansas Sabetha, Kansas Financial Shares, Inc., Citizens State Bank, Kansas City July 27, 1984 Morland, Kansas Morland, Kansas First Bancshares, Inc., The First Bank of Grove Hill, Atlanta August 15, 1984 Grove Hill, Alabama Grove Hill, Alabama First Community Bank Group, Bank of Albany, Chicago July 30, 1984 Incorporated, Albany, Wisconsin Burlington, Wisconsin First Fidelity Bancorp, Inc., Central National Bank, Richmond July 30, 1984 Fairmont, West Virginia Morgantown, West Virginia First Guthrie Bancshares, Inc., First Stillwater Bancshares, Inc., Kansas City August 13, 1984 Guthrie, Oklahoma Stillwater, Oklahoma First Intermountain Holding United Bank, San Francisco August 10, 1984 Corp., Murray, Utah Salt Lake City, Utah First Park Ridge Corporation, Bank of Buffalo Grove, Chicago August 1, 1984 Chicago, Illinois Buffalo Grove, Illinois First State Bancshares, First State Bank of the Oaks San Francisco August 14, 1984 Thousand Oaks, California Thousand Oaks, California First Valley Corporation, The Hazleton National Bank, Philadelphia August 1, 1984 Bethlehem, Pennsylvania Hazleton, Pennsylvania First Washington Bancorp, Inc., Washington Bank and Trust Chicago August 13, 1984 Naperville, Illinois Company of Naperville, Naperville, Illinois First Western Bancshares, Inc., The National Bank of Grand Dallas July 30, 1984 Duncanville, Texas Prairie, Grand Prairie, Texas G.N.B. Bankshares, Inc., The Garrett National Bank in Richmond August 13, 1984 Oakland, Maryland Oakland, Oakland, Maryland Greensburg Bancshares, Inc., Bank of Greensburg, Atlanta July 26, 1984 Greensburg, Louisiana Greensburg, Louisiana Guardian Bancorp, Inc., Guardian Bank, San Francisco August 15, 1984 Phoenix, Arizona Phoenix, Arizona Hallam Bancorp, Inc., Hallam Bank, Kansas City July 27, 1984 Hallam, Nebraska Hallam, Nebraska Hartford Financial Corp., City Bank of Hartford, Atlanta August 6, 1984 Hartford, Alabama Hartford, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin • September 1984 Section 3—Continued . « i / \ Reserve Effective Applicant Bank(s) Rank date Hometown Bancshares, Inc., Clear Lake National Bank, Dallas August 16, 1984 Houston, Texas Houston, Texas Hopkins County First Financial First National Bank of Sulphur Dallas August 10, 1984 Services Corporation, Springs, Sulphur Springs, Texas Sulphur Springs, Texas Huntsville Bancshares, Inc., Farmers and Merchants Bank, St. Louis August 13, 1984 Huntsville, Missouri Huntsville, Missouri Island BankShares, Inc., Commercial State Bank, Kansas City August 7, 1984 Long Island, Kansas Long Island, Kansas Langdon Bancshares, Inc., Farmers and Merchants State Minneapolis August 16, 1984 Langdon, North Dakota Bank, Langdon, North Dakota Liberty Bancorp, Inc., Liberty Bank, Chicago August 9, 1984 Broadview, Illinois Broadview, Illinois Lizton Financial Corporation, State Bank of Lizton, Chicago August 13, 1984 Lizton, Indiana Lizton, Indiana Maple Bank Bancshares, Inc., First State Bank of Maple Park, Chicago August 3, 1984 Maple Park, Illinois Maple Park, Illinois Mississippi Valley Investment Southwest Bank of St. Louis, St. Louis August 3, 1984 Company, St. Louis, Missouri St. Louis, Missouri Monticorp Inc., First National Bank of Chicago July 31, 1984 Monticello, Indiana Monticello, Monticello, Indiana Montgomery County Banc- The Bank of Montgomery St. Louis July 26, 1984 shares, Inc., County, Little Rock, Arkansas Mount Ida, Arkansas Mutual Banc Corp, Mutual Trust Bank, St. Louis August 10, 1984 New Albany, Indiana New Albany, Indiana Napoleon Bancorp, The Napoleon State Bank, Chicago August 10, 1984 Napoleon, Indiana Napoleon, Indiana National Banc of Commerce Bank of Nitro, Richmond August 14, 1984 Company, Nitro, West Virginia Charleston, West Virginia National Bancshares Cor- Boerne State Bank, Dallas August 13, 1984 poration of Texas, Boerne, Texas San Antonio, Texas North Texas American Banc- The American Bank and Trust of Dallas July 30, 1984 shares, Inc., Denison, Denison, Texas Denison, Texas Prairie Capital, Inc., The Prairie State Bank, Kansas City August 13, 1984 Augusta, Kansas Augusta, Kansas R & J Financial Corporation, Peoples Savings Bank, Chicago August 13, 1984 Plainsfield, Iowa Elma, Iowa Ruth Bank Corporation, Ruth State Bank, Chicago August 10, 1984 Ruth, Michigan Ruth, Michigan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 753 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Shreveport Bancshares, Inc., Shreveport Bank & Trust Dallas August 14, 1984 Shreveport, Louisiana Company, Shreveport, Louisiana Smithtown Bancorp, Inc., Bank of Smithtown, New York August 6, 1984 Smithtown, New York Smithtown, New York Southwest Tennessee Banc- Farmers & Merchants Bank, St. Louis August 1, 1984 shares, Inc., Adamsville, Tennessee Adamsville, Tennessee Spring Woods Bancshares, Inc. Richmark Bank, N.A., Dallas July 31, 1984 Houston, Texas Houston, Texas Springhill Bancshares, Inc., Springhill Bank & Trust Dallas August 13, 1984 Springhill, Louisiana Company, Springhill, Louisiana Stewart County Bancorp, Inc., Dover-Peoples Bank & Trust Atlanta August 6, 1984 Dover, Tennessee Company, Dover, Tennessee The Chattahoochee Financial The Chattahoochee Bank, Atlanta August 7, 1984 Corporation, Marietta, Georgia Marietta, Georgia Unibancorp, The Union Bank, St. Louis August 10, 1984 Loogootee, Indiana Loogootee, Indiana Western Kansas Bancshares, Southwest Kansas National Kansas City August 9, 1984 Inc., Bank, Ulysses, Kansas Ulysses, Kansas Valley Bancorp, Inc., Platte Valley Industrial Bank, Kansas City August 13, 1984 Brighton, Colorado Brighton, Colorado Section 4 Nonbanking Reserve Effective Applicant company Bank date Marshall & Ilsley Corporation, Midwest Bank's Data Processing, Chicago August 14, 1984 Milwaukee, Wisconsin Inc., Moline, Illinois Sections 3 and 4 Bank(s)/Nonbanking Reserve Effective Applicant Company Bank date First Victoria Corporation, First Victoria National Bank, Dallas August 13, 1984 Victoria, Texas Victoria, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin • September 1984 ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Virginia Community Bank, The Bank of Louisa, Richmond August 8, 1984 Louisa, Virginia Louisa, Virginia 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. Old Stone Corp. v. Board of Governors, No. 84-1498 Financial Institutions Assurance Corp. v. Board of (1st Cir., filed June 20, 1984). Governors, No. 84-1101 (4th Cir., filed Jan. 27, Bank of Boston Corp. v. Board of Governors, No. 84- 1984). 4089 (2d Cir., filed June 14, 1984). First Bancorporation v. Board of Governors, No. 84- Bank of New York Company, Inc. v. Board of Gover- 1011 (10th Cir., filed Jan. 5, 1984). nors, No. 84- 4091 (2d Cir., filed June 14, 1984). Dimension Financial Corporation v. Board of Gover- Citicorp v. Board of Governors, No. 84-4081 (2d Cir., nors, No. 83-2696 (10th Cir., filed Dec. 30, 1983). filed May 22, 1984). Oklahoma Bankers Association v. Federal Reserve Lamb v. Pioneer First Federal Savings and Loan Board, No. 83-2591 (10th Cir., filed Dec. 13, 1983). Association, No. C84-702 (D. Wash., filed May 8, Independent Insurance Agents of America, Inc. v. 1984). Board of Governors, No. 83-1818 (8th Cir., filed Girard Bank v. Board of Governors, No. 84-3262 (3rd June 21, 1983); and No. 83-1819 (8th Cir., filed Cir., filed May 2, 1984). June 21, 1983). Melcher v. Federal Open Market Committee, No. 84- The Committee for Monetary Reform v. Board of 1335 (D.D.C., filed, Apr. 30, 1984). Governors, No. 84-5067 (D.C. Cir., filed June 16, Florida Bankers Association v. Board of Governors, 1983). No. 84-3269 and No. 84-3270 (11th Cir., filed Securities Industry Association v. Board of Gover- Apr. 20, 1984). nors, No. 83-614 (U.S., filed Feb. 3, 1983). Northeast Bancorp, Inc. v. Board of Governors, No. Association of Data Processing Service Organizations 84-4047, No. 84-4051, No. 84-4053 (2d Cir., filed v. Board of Governors, No. 82-1910 (D.C. Cir., filed Mar. 27, 1984). Aug. 16, 1982); and No. 82-2108 (D.C. Cir., filed Huston v. Board of Governors, No. 84-1361 (8th Cir., Aug. 16, 1982). filed Mar. 20, 1984); and No. 84-1084 (8th Cir. filed First Bancorporation v. Board of Governors, No. 82- Jan. 17, 1984). 1401 (10th Cir., filed Apr. 9, 1982). De Young v. Owens, No. SC 9782-20-6 (Iowa Dist. Wolfson v. Board of Governors, No. 83-3570 (11th Ct., filed Mar. 8, 1984). Cir., filed Sept. 28, 1981). First Tennessee National Corp. v. Board of Gover- First Bank & Trust Company v. Board of Governors, nors, No. 84-3201 (6th Cir., filed Mar. 6, 1984). No. 81-38 (E.D. Ky., filed Feb. 24, 1981). Independent Insurance Agents of America v. Board of 9 to 5 Organization for Women Office Workers v. Governors, No. 84-1083 (D.C. Cir., filed Mar. 5, Board of Governors, No. 83-1171 (1st Cir., filed 1984). Dec. 30, 1980). State of Ohio v. Board of Governors, No. 84-1270 Securities Industry Association v. Board of Gover- (10th Cir., filed Jan. 30, 1984). nors, No. 82-1766 (U.S., filed Oct. 24, 1980). Ohio Deposit Guarantee Fund v. Board of Governors, A. G. Becker, Inc. v. Board of Governors, No. 82-1766 No. 84-1257 (10th Cir., filed Jan. 28, 1984). (U.S., filed Oct. 14, 1980). Colorado Industrial Bankers Association v. Board oj A. G. Becker, Inc. v. Board of Governors, No. 81-1493 Governors, No. 84-1122 (10th Cir., filed Jan. 27, (D.C. Cir., filed Aug. 25, 1980). 1984). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A18 All reporting banks A19 Banks in New York City A3 Reserves, money stock, liquid assets, and debt A20 Balance sheet memoranda measures A20 Branches and agencies of foreign banks A4 Reserve balances of depository institutions, A21 Gross demand deposits of individuals, Reserve Bank credit partnerships, and corporations A5 Reserves and borrowings of depository institutions A5 Federal funds and repurchase agreements of FINANCIAL MARKETS large member banks A22 Commercial paper and bankers dollar acceptances outstanding POLICY INSTRUMENTS A22 Prime rate charged by banks on short-term business loans A6 Federal Reserve Bank interest rates A23 Terms of lending at commercial banks A7 Reserve requirements of depository institutions A24 Interest rates in money and capital markets A8 Maximum interest rates payable on time and A25 Stock market—Selected statistics savings deposits at federally insured institutions A26 Selected financial institutions—Selected assets A9 Federal Reserve open market transactions and liabilities FEDERAL RESERVE BANKS FEDERAL FINANCE A10 Condition and Federal Reserve note statements A27 Federal fiscal and financing operations All Maturity distribution of loan and security A28 U.S. Budget receipts and outlays holdings A29 Federal debt subject to statutory limitation A29 Gross public debt of U.S. Treasury—Types and ownership MONETARY AND CREDIT AGGREGATES A30 U.S. government securities dealers— Transactions, positions, and financing A12 Aggregate reserves of depository institutions A31 Federal and federally sponsored credit and monetary base agencies—Debt outstanding A13 Money stock, liquid assets, and debt measures A14 Bank debits and deposit turnover A15 Loans and securities of all commercial banks COMMERCIAL BANKING INSTITUTIONS A16 Major nondeposit funds A17 Assets and liabilities, last-Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • September 1984 SECURITIES MARKETS AND International Statistics 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 A38 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 Q3 Q4 Ql Q2 Mar. Apr. May June July Reserves of depository institutions2 1 Total 6.0 .5 6.9 7.8 1.3 .0 10.7 26.5 -1.8 2 Required 5.9 -.1 4.5 9.6 9.3 7.4 8.0 20.6 3.5 3 Nonborrowed 2.9 8.0 8.2 -12.1 -11.7 -9.6 -46.2 17.7 -94.7 4 Monetary base3 8.1 7.8 9.0 7.0 .8 6.0 10.1 11.7 5.6 Concepts of money, liquid assets, and debt4 5 Ml 9.5 4.8 7.2 6.1r .4' .7 12.8 11.5 -1.3 6 M2 6.9 8.5 6.9 6.8' 4.0 6.9' 8.5' 7.0' 5.0 7 M3 7.4 9.8 8.9' 10.4 9.3' 10.7' 11.2' 9.3' 8.9 8 L 9.6 8.8 10.8' 12.3 15.6 9.7' 11. 15.1 n.a. 9 Debt 11.8 10.4 12.5 13.5 12.3' 13.4' 14.8' 12.6 n.a. Nontransaction components 10 In M25 6.1 9.7 6.9 7.0' 3.7 9.0 7.0' 5.6' 7.0 11 In M3 only6 9.8' 15.8 17.5' 25.3 31.3' 26.7 22.4' 18.7' 24.4 Time and savings deposits Commercial banks 12 Savings7 -6.3 -6.4 -16.2 -6.4 -11.1 -2.8 -3.7 -1.9 -5.6 13 Small-denomination time8 13.7 19.3 4.4 8.6 2.4 8.5 15.2 17.3 20.0 14 Large-denomination time9-10 -4.8 -.2 10.0 24.2 23.7 18.6 37.6 28.5 26.0 Thrift institutions 15 Savings7 -2.2 -4.4 -5.1 .5 .7 2.0 2.7 -.7' -8.1 16 Small-denomination time 12.3 18.8 11.8 9.0 4.8 6.7 9.8' 18.9 25.1 17 Large-denomination time9 63.5 58.1 59.0 46.4 37.5 41.6 43.2 54.3 42.7 Debt components4 18 Federal 22.9 13.3 14.7 14.0 7.5' 12.5' 19.3 11.8 n.a. 19 Nonfederal 8.7 9.6 11.8 13.4 13.7' 13.8 13.5 12.9 n.a. 20 Total loans and securities at commercial banks11 9.7 10.4 14.0 10.4' 13.4 5.8 13.9' 1.7' 8.7 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 • September 1984 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week ending daily figures FFFaaaccctttooorrrsss 1984 1984 June July Aug. July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 175,397 176,910 175,604 177,945 176,331 175,366 176,186 176,122 174,924 174,371 22222 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 154,500 152,628 150,145 154,054 151,472 149,972 150,701 149,443 150,378 149,332 33333 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 153,354 152,050 149,890 153,102 151,472 149,972 150,701 149,443 150,378 149,332 44444 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 1,146 578 255 952 0 0 0 0 0 0 55555 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,602 8,540 8,512 8,542 8,500 8,498 8,494 8,494 8,494 8,494 66666 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,503 8,500 8,494 8,500 8,500 8,498 8,494 8,494 8,494 8,494 77777 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss.................... 99 40 18 42 0 0 0 0 0 0 88888 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 106 0 0 0 0 0 0 0 0 0 99999 LLLLLoooooaaaaannnnnsssss 3,166 6,023 8,095 5,891 6,849 7,460 7,282 8,692 7,935 8,356 1111100000 FFFFFllllloooooaaaaattttt 594 822 417 713 603 370 784 583 286 106 1111111111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 8,429 8,897 8,435 8,745 8,907 9,066 8,925 8,910 7,831 8,083 1111122222 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,103 11,099 11,099 11,099 11,099 11,099 11,099 11,099 11,099 11,099 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 16,082 16,147 16,186 16,128' 16,136' 16,146 16,162 16,177 16,192 16,207 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 1111155555 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 174,219 176,358 176,182 176,828' 175,892' 175,355 176,257 176,767 176,117 175,468 1111166666 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 530 514 475 521 510 497 480 476 475 472 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss,,,,, wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 1111177777 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 3,894 3,966 3,528 3,415 3,972 4,179 3,942 3,120 3,348 3,615 1111188888 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 244 227 214 248 227 215 218 205 208 206 1111199999 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss 1,388 1,526 1,462 1,339 2,043' 1,502 1,404 1,378 1,452 1,504 2222200000 OOOOOttttthhhhheeeeerrrrr 439 329 339 341 276 314 274 275 322 436 2222211111 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 6,214 6,128 5,986 6,1% 6,147 6,097 5,853 6,067 6,039 5,979 2222222222 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 20,272 19,726 19,321 20,904 19,118' 19,071 19,637 19,728 18,871 18,614 End-of-month figures Wednesday figures 1984 1984 June July Aug. July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 SSSSSUUUUUPPPPPPPPPPLLLLLYYYYYIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 2222233333 RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkk cccccrrrrreeeeedddddiiiiittttt 175,051 176,127 178,938 181,230 174,907 178,219 177,009 174,186 174,939 173,944 2222244444 UUUUU.....SSSSS..... gggggooooovvvvveeeeerrrrrnnnnnmmmmmeeeeennnnnttttt ssssseeeeecccccuuuuurrrrriiiiitttttiiiiieeeeesssss''''' 152,859 150,705 153,183 155,637 150,167 151,352 150,660 144,689 150,392 149,054 2222255555 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 152,859 150,705 148,356 152,630 150,167 151,352 150,660 144,689 150,392 149,054 2222266666 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 4,827 3,007 0 0 0 0 0 0 2222277777 FFFFFeeeeedddddeeeeerrrrraaaaalllll aaaaagggggeeeeennnnncccccyyyyy ooooobbbbbllllliiiiigggggaaaaatttttiiiiiooooonnnnnsssss 8,501 8,499 8,863 8,659 8,499 8,494 8,494 8,494 8,494 8,494 2222288888 BBBBBooooouuuuuggggghhhhhttttt ooooouuuuutttttrrrrriiiiiggggghhhhhttttt 8,501 8,499 8,494 8,500 8,499 8,494 8,494 8,494 8,494 8,494 2222299999 HHHHHeeeeelllllddddd uuuuunnnnndddddeeeeerrrrr rrrrreeeeepppppuuuuurrrrrccccchhhhhaaaaassssseeeee aaaaagggggrrrrreeeeeeeeeemmmmmeeeeennnnntttttsssss 0 0 369 159 0 0 0 0 0 0 3333300000 AAAAAcccccccccceeeeeppppptttttaaaaannnnnccccceeeeesssss 0 0 0 0 0 0 0 0 0 0 3333311111 LLLLLoooooaaaaannnnnsssss 4,760 7,238 8,276 6,958 6,995 8,775 7,385 12,787 7,826 8,166 3333322222 FFFFFllllloooooaaaaattttt -655 671 326 1,006 198 604 1,225 264 38 -24 3333333333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee aaaaasssssssssseeeeetttttsssss 9,586 9,014 8,290 8,970 9,048 8,994 9,245 7,952 8,189 8,254 3333344444 GGGGGooooolllllddddd ssssstttttoooooccccckkkkk 11,100 11,099 11,098 11,099 11,099 11,099 11,099 11,099 11,099 11,098 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 16,111 16,173 16,220 16,135' 16,143' 16,160 16,175 16,190 16,205 16,220 AAAAABBBBBSSSSSOOOOORRRRRBBBBBIIIIINNNNNGGGGG RRRRREEEEESSSSSEEEEERRRRRVVVVVEEEEE FFFFFUUUUUNNNNNDDDDDSSSSS 3333377777 CCCCCuuuuurrrrrrrrrreeeeennnnncccccyyyyy iiiiinnnnn ccccciiiiirrrrrcccccuuuuulllllaaaaatttttiiiiiooooonnnnn 175,069 175,634 176,852 176,527' 175,614' 175,777 176,713 176,667 175,837 176,005 3333388888 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy cccccaaaaassssshhhhh hhhhhooooollllldddddiiiiinnnnngggggsssss 523 497 465 512 497 489 476 475 473 465 DDDDDeeeeepppppooooosssssiiiiitttttsssss,,,,, ooooottttthhhhheeeeerrrrr ttttthhhhhaaaaannnnn rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 3333399999 TTTTTrrrrreeeeeaaaaasssssuuuuurrrrryyyyy 4,397 3,972 4,029 3,848 3,958 3,586 4,220 4,393 3,358 3,783 4444400000 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 237 215 242 195 246 256 228 205 233 215 4444411111 SSSSSeeeeerrrrrvvvvviiiiiccccceeeee-----rrrrreeeeelllllaaaaattttteeeeeddddd bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaannnnnddddd aaaaadddddjjjjjuuuuussssstttttmmmmmeeeeennnnntttttsssss .................... 1,148 1,159 1,148 1,156 1,157' 1,158 1,145 1,145 1,141 1,142 4444422222 OOOOOttttthhhhheeeeerrrrr 432 309 413 275 265 533 246 289 485 428 4444433333 OOOOOttttthhhhheeeeerrrrr FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee llllliiiiiaaaaabbbbbiiiiillllliiiiitttttiiiiieeeeesssss aaaaannnnnddddd cccccaaaaapppppiiiiitttttaaaaalllll 5,971 6,035 6,140 6,126 5,967 5,815 5,811 5,842 5,863 5,792 4444444444 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh FFFFFeeeeedddddeeeeerrrrraaaaalllll RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 19,104 20,196 21,585 24,444 19,064' 22,482 20,062 17,077 19,470 18,050 1. Includes securities loaned—fully guaranteed by U.S government securities 2. Excludes 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 Reserve classification 1981 1982 1983 1984 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July 1 Reserve balances with Reserve Banks1 26,163 24,804 20,986 21,325 18,414 19,484 20,351 19,560 20,210 19,885 2 Total vault cash2 19,538 20,392 20,755 22,578 22,269 20,396 20,152 20,446 20,770 21,134 3 Vault cash used to satisfy reserve requirements3 . 15,755 17,049 17,908 18,795 17,951 16,794 16,802 16,960 17,308 17,579 4 Surplus vault cash4 3,783 3,343 2,847 3,782 4,318 3,602 3,349 3,486 3,461 3,555 5 Total reserves5 41,918 41,853 38,894 40,120 36,365 36,278 37,154 36,519 37,518 37,464 6 Required reserves 41,606 41,353 38,333 39,507 35,423 35,569 36,664 35,942 36,752 36,858 7 Excess reserve balances at Reserve Banks6 312 500 561 613 942 709 490 577 767 607 8 Total borrowings at Reserve Banks 642 697 774' 715 567 952 1,234 2,988 3,300 5,924 9 Seasonal borrowings at Reserve Banks 53 33 96 86 103 133 139 1% 264 308 10 Extended credit at Reserve Banks7 149 187 2 4 5 27 44 37 1,873 5,008 Biweekly averages of daily figures for weeks ending 1984 Apr. 25 May 9 May 23 June 6 June 20 July 4 July 18 Aug. 1 Aug. 15P Aug. 29p 11 Reserve balances with Reserve Banks' 20,556 20,029 19,390 19,329 20,603 20,189 20,546 19,079 19,669 18,727 12 Total vault cash2 20,476 20,010 20,655 20,570 20,604 21,121 20,708 21,597 21,533 21,981 13 Vault cash used to satisfy reserve requirements3 . 17,103 16,582 17,167 17,023 17,284 17,513 17,404 17,789 17,922 18,156 14 Surplus vault cash4 3,373 3,429 3,489 3,547 3,320 3,608 3,304 3,808 3,611 3,825 15 Total reserves5 37,659 36,611 36,556 36,352 37,887 37,702 37,950 36,868 37,590 36,882 16 Required reserves 37,091 36,019 35,937 35,865 37,208 36,645 37,499 36,233 36,914 36,184 17 Excess reserve balances at Reserve Banks6 568 592 620 487 679 1,058 451 635 677 698 18 Total borrowings at Reserve Banks 1,232 1,064 4,180 3,070 2,965 3,909 5,358 7,155 7,987 8,146 19 Seasonal borrowings at Reserve Banks 138 159 195 239 257 289 284 340 338 359 20 Extended credit at Reserve Banks7 44 61 34 16 1,974 2,846 4,614 6,098 6,976 7,184 1. Excludes required clearing balances and adjustments to compensate for requirements. Such vault cash consists of all vault cash held during the lagged float. computation period by institutions having required reserve balances at Federal 2. Dates refer to the maintenance periods in which the vault cash can be used to Reserve Banks plus the amount of vault cash equal to required reserves during the satisfy reserve requirements. Under contemporaneous reserve requirements, maintenance period at institutions having no required reserve balances. maintenance periods end 30 days after the lagged computation periods in which 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy the balances are held. reserve requirements less required reserves. 3. Equal to all vault cash held during the lagged computation period by 7. Extended credit consists of borrowing at the discount window under the institutions having required reserve balances at Federal Reserve Banks plus the terms and conditions established for the extended credit program to help amount of vault cash equal to required reserves during the maintenance period at depository institutions deal with sustained liquidity pressures. Because there is institutions having no required reserve balances. not the same need to repay such borrowing promptly as there is with traditional 4. Total vault cash at institutions having no required reserve balances less the short-term adjustment credit, the money market impact of extended credit is amount of vault cash equal to their required reserves during the maintenance similar to that of nonborrowed reserves. period. 5. Total reserves not adjusted for discontinuities consist of reserve balances NOTE. These data also appear in the Board's H.3 (502) release. For address, see with Federal Reserve Banks, which exclude required clearing balances and inside front cover. adjustments to compensate for float, plus vault cash used to satisfy reserve 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 July 2 July 9 July 16 July 23 July 30' Aug. 6 Aug. 13 Aug. 20 Aug. 27 One day and continuing contract 1 Commercial banks in United States 56,052 64,992 59,295 55,879' 5544,,330022 6600,,007700 6622,,004411 5599,,669922 5566,,996699 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 18,828 21,053 19,970 19,502 19,437 21,050 22,831 21,881 21,738 3 Nonbank securities dealers 5,570 5,361 4,740 5,027 4,758 5,029 5,469 5,287 5,073 4 All other 24,075 24,357 24,793 25,787 25,654 25,363 26,088 26,242 27,663 All other maturities 5 Commercial banks in United States 9,2% 8,908 9,084 9,065 99,,113333 99,,004400 88,,990088 88,,662200 99,,223366 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 11,980 11,728 12,033 10,799 10,650 10,397 10,159 9,923 9,614 7 Nonbank securities dealers 6,557 5,466 5,723 5,901 6,862 6,758 6,514 6,304 6,117 8 All other 9,186 8,535 9,586 9,484 9,734 10,008 10,320 10,290 10,413 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 25,074r 24,908' 24,744' 23,686' 23,954 26,938 26,008 26,517 24,220 10 Nonbank securities dealers 5,328 4,936 4,896 4,239 3,950 3,882 3,809 4,189 3,987 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 • September 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 8/31/84 date rate 8/31/84 rate 8/31/84 rate 8/31/84 rate Boston 9 4/9/84 m 9 m 10 91/2 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 D Sa a n ll a F s rancisco... 9 4 4 / / 1 9 3 / / 8 8 4 4 8'/> 9 m 10 11 10(4 4 4 / / 1 9 3 / / 8 8 4 4 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l el F } . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. I 1 n 9 7 e 4 ff — ec A t D pr e . c. 2 3 5 1 , 1973 lV IV i I - % 7l/l 1978—July 1 3 0 7- 7 7 '/ " 4 /4 7 7 1 1 / / 4 4 11998811——MMaayy 55 88 13 1 - 4 1 4 1 1 4 4 Dec. 3 1 9 0 6 V 8 73 / / i 4 r -% 7 73 % /4 O A Se c u p t g . t . . 2 2 1 2 1 6 8- 7 8 8 3 V /4 2 8 7 m 3 /4 N De o c v . . 2 4 6 13 1 1 - 3 2 1 4 1 1 1 2 3 3 1975— Jan. 6 7l/4-73/4 73/4 Nov. 2 1 0 81/ 8 2 V -9 i 1 /2 9 8' ' / / > ! 1982— July 20 llVi-12 ll'/2 10 iVt-VA 7>/4 3 91/1 9Vz 23 11'/> ll'/> F M e a b r . . 2 1 5 4 7 0 6 6 ' 3 / V 6 / t 4 - A 3 6 - / 7 4 3 ' / / 4 4 6 6 6 7 3 3 ' ' / / / / 4 4 4 4 1979—J A u u ly g . 2 2 1 0 7 0 10 1 1 - 0 0 1 ' 0 /! ' /! l 1 1 O 0 0 ' ' / / i ! Aug. 2 1 2 7 3 6 1 1 0 1 1 - - 0 1 1 1 ' 1 / 0 1 > ' ' / / ! ! 1 1 1 1 0 1 1 0 '/! 14 6Vi 6V4 Sept. 19 lO'/i-l 1 11 30 10 10 May 16 6-6'/4 6 21 11 11 Oct. 12 9>/2-10 9'/! 23 6 6 Oct. 8 11-12 12 13 9'/2 91/2 1976— Jan. 19 5>/2-6 5'/> 10 12 12 Nov. 2 2 2 6 9-9 9 ' /i 9 9 Nov. 2 2 2 3 51 5 /4 V -5 i 1/! 5 5 V > 2 A 1980—Feb. 1 1 5 9 12 1 - 3 1 3 1 1 3 3 Dec. 1 1 4 5 8 8' ' / / 2 s- - 9 9 9 8 '/! 26 5'/4 5'A May 29 12-13 13 17 8>/2 8Vi 1977— Aug. 3 3 0 1 5 51 '/ / 4 4 - -5 5 V 3/ 4 4 5 5 1 3 / / 4 4 June 1 3 1 3 0 6 11 1 1 - 2 1 1 2 1 1 1 2 1 1 1984— Apr. 1 9 3 8Vi— 9 9 9 9 Sept. 2 53/4 53/4 July 28 10-11 10 Oct. 26 6 6 29 10 10 Sept. 26 11 11 1978— Jan. 2 9 0 6 6 -6 V ' i / i 6 6 '/lA z N De o c v . . 1 5 7 12 1 - 2 1 3 1 1 2 3 May 11 6'/>-7 7 13 13 12 7 7 In effect Aug. 31, 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 Al 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 ee ii pp nn oo tt ss ee ii rr tt vv ,, aa aa ll nndd Monetary Control Act TTyy dd pp ee ee pp oo ooff ss ii dd tt ee ii pp nn oo ttee ss rr iitt vv ,, aall aa 55 nn dd Monetary Control Act6 Percent Effective date Percent Effective date Net demand2 Net transaction accounts1 7 12/30/76 $0-$28.9 million 3 12/29/83 9l/2 12/30/76 Over $28.9 million 1122 1122//2299//8833 $10 million-$100 million 113/4 12/30/76 $100 million-$400 million 123/4 12/30/76 Nonpersonal time deposits9 Over $400 million 16'/4 12/30/76 By original maturity Less than 1 xh years 3 10/6/83 Time and savings2-3 1 years or more 0 10/6/83 Savings 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 $0 million-$5 million, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more 1 10/30/75 Over $5 million, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2 Vi 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual 5. The Garn-St Germain Depository Institutions Act of 1982 (Public Law 97- Statistical Digest, 1971-1975, and for prior changes, see Board's Annual Report 320) provides that $2 million of reservable liabilities (transaction accounts, for 1976, table 13. Under provisions of the Monetary Control Act, depository nonpersonal time deposits, and Eurocurrency liabilities) of each depository institutions include commercial banks, mutual savings banks, savings and loan institution be subject to a zero percent reserve requirement. The Board is to adjust associations, credit unions, agencies and branches offoreign banks, and Edge Act the amount of reservable liabilities subject to this zero percent reserve requirecorporations. ment each year for the next succeeding calendar year by 80 percent of the 2. Requirement schedules are graduated, and each deposit interval applies to percentage increase in the total reservable liabilities of all depository institutions, that part of the deposits of each bank. Demand deposits subject to reserve measured on an annual basis as of June 30. No corresponding adjustment is to be requirements were gross demand deposits minus cash items in process of made in the event of a decrease. Effective Dec. 9, 1982, the amount of the collection and demand balances due from domestic banks. exemption was established at $2.1 million. Effective with the reserve maintenance The Federal Reserve Act as amended through 1978 specified different ranges of period beginning Jan. 12, 1984, the amount of the exemption is $2.2 million. In requirements for reserve city banks and for other banks. Reserve cities were determining the reserve requirements of a depository institution, the exemption designated under a criterion adopted effective Nov. 9, 1972, by which a bank shall apply in the following order: (1) nonpersonal money market deposit accounts having net demand deposits of more than $400 million was considered to have the (MMDAs) authorized under 12 CFR section 1204.122; (2) net NOW accounts character of business of a reserve city bank. The presence of the head office of (NOW accounts less allowable deductions); (3) net other transaction accounts; such a bank constituted designation of that place as a reserve city. Cities in which and (4) nonpersonal time deposits or Eurocurrency liabilities starting with those there were Federal Reserve Banks or branches were also reserve cities. Any with the highest reserve ratio. With respect to NOW accounts and other banks having net demand deposits of $400 million or less were considered to have transaction accounts, the exemption applies only to such accounts that would be the character of business of banks outside of reserve cities and were permitted to subject to a 3 percent reserve requirement. maintain reserves at ratios set for banks not in reserve cities. 6. For nonmember banks and thrift institutions that were not members of the Effective Aug. 24, 1978, the Regulation M reserve requirements on net balances Federal Reserve System on or after July 1, 1979, a phase-in period ends Sept. 3, due from domestic banks to their foreign branches and on deposits that foreign 1987. For banks that were members on or after July 1, 1979, but withdrew on or branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent before Mar. 31, 1980, the phase-in period established by Public Law 97-320 ends respectively. The Regulation D reserve requirement of borrowings from unrelated on Oct. 24, 1985. For existing member banks the phase-in period 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 lx/i 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 • September 1984 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions' Percent per annum Commercial banks mut S ua a l v i s n a g v s i n a g n s d b l a o n a k n s a ( s t s h o r c if i t a t i i n o s n t s it u a t n io d n s)1 In effect Sept. 30, 1984 In effect Sept. 30, 1984 Type of deposit Percent Effective date Percent Effective date 1 Savings 5'/! 1/1/84 5 '/i 7/1/79 2 Negotiable order of withdrawal accounts S'/4 12/31/80 5'/4 12/31/80 3 Negotiable order of withdrawal accounts of $2,500 or more2 1/5/83 1/5/83 4 Money market deposit account2 12/14/82 12/14/82 Time accounts by maturity 5 7-31 days of less than $2,5004 51* 1/1/84 5>/2 9/1/82 6 7-31 days of $2,500 or more2 1/5/83 1/5/83 7 More than 31 days 10/1/83 10/1/83 1. Effective Oct. 1, 1983, restrictions on the maximum rates of interest payable period is required for this account, but depository institutions must reserve the by commercial banks and thrift institutions on various categories of deposits were right to require seven days notice before withdrawals. When the average balance removed. For information regarding previous interest rate ceilings on all catego- is less than $2,500, the account is subject to the maximum ceiling rate of interest ries of accounts see earlier issues of the FEDERAL RESERVE BULLETIN, the for NOW accounts; compliance with the average balance requirement may be Federal Home Loan Bank Board Journal, and the Annual Report of the Federal determined over a period of one month. Depository institutions may not guarantee Deposit Insurance Corporation before November 1983. a rate of interest for this account for a period longer than one month or condition 2. Effective Dec. 1, 1983, IRA/Keogh (HR10) Plan accounts are not subject to the payment of a rate on a requirement that the funds remain on deposit for longer minimum deposit requirements. than one month. 3. Effective Dec. 14,1982, depository institutions are authorized to offer a new 4. Deposits of less than $2,500 issued to governmental units continue to be account with a required initial balance of $2,500 and an average maintenance subject to an interest rate ceiling of 8 percent. balance of $2,500 not subject to interest rate restrictions. No minimum maturity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1984 TTyyppee ooff ttrraannssaaccttiioonn 11998811 11998822 11998833 Jan. Feb. Mar. Apr. May June July U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 13,899 17,067 18,888 0 368 3,159 3,283 610 801 0 2 Gross sales 6,746 8,369 3,420 1,967 828 0 0 2,003 0 897 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 1,816 3,000 2,400 1,300 600 0 3,283 2,200 801 600 Others within 1 year 5 Gross purchases 317 312 484 0 0 0 198 0 0 0 6 Gross sales 23 0 0 0 0 0 0 0 0 0 7 Maturity shift 13,794 17,295 18,887 573 -2,488 1,012 347 2,739 1,069 427 8 Exchange -12,869 -14,164 -16,553 1,530 -4,574 0 -2,223 -1,807 0 -2,606 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 0 0 0 808 0 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -10,299 -14,524 -15,533 -487 2,488 -1,012 -273 -2,279 -1,069 -345 13 Exchange 10,117 11,804 11,641 1,530 2,861 0 2,223 1,150 0 2,606 5 to 10 years 14 Gross purchases 393 388 890 0 0 0 200 0 0 0 15 Gross sales 0 0 0 300 0 0 0 0 0 0 16 Maturity shift -3,495 -2,172 -2,450 -86 97 0 -75 -383 0 -83 17 Exchange 1,500 2,128 2,950 0 1,000 0 0 400 0 0 Over 10 years 18 Gross purchases 379 307 383 0 0 0 277 0 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -601 -904 0 -97 0 0 -77 0 0 21 Exchange 1,253 234 1,962 0 713 0 0 257 0 0 All maturities 22 Gross purchases 16,690 19,870 22,540 0 368 3,159 1,484 610 801 0 23 Gross sales 6,769 8,369 3,420 2,267 828 0 0 2,003 0 897 24 Redemptions 1,816 3,000 2,487 1,300 600 0 0 2,200 0 600 Matched transactions 25 Gross sales 589,312 543,804 578,591 54,833 55,656 66,827 72,293 79,313 61,017 81,799 26 Gross purchases 589,647 543,173 576,908 58,096 47,310 73,634 71,754 79,608 61,331 81,143 Repurchase agreements 27 Gross purchases 79,920 130,774 105,971 14,245 0 4,9% 15,313 88,,226677 23,298 14,830 28 Gross sales 78,733 130,286 108,291 15,629 0 4,9% 8,220 12,199 26,460 14,830 29 Net change in U.S. government securities 9,626 8,358 12,631 -1,688 -9,407 9,966 11,321 -7,228 -2,047 -2,154 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 40 38 10 2 40 15 -1 Repurchase agreements 33 Gross purchases 13,320 18,957 8,833 931 0 609 1,247 616 1,819 958 34 Gross sales 13,576 18,638 9,213 1,139 0 609 820 744 2,117 958 35 Net change in federal agency obligations 130 130 -672 -248 -38 -10 424 -169 -313 -1 BANKERS ACCEPTANCES 36 Repurchase agreements, net -582 1,285 -1,062 -418 0 0 305 122 -426 0 37 Total net change in System Open Market Account 9,175 9,773 10,897 -2,354 -9,444 9,956 12,050 -7,275 -2,786 -2,155 NOTE: Sales, redemptions, and negative figures reduce holdings of the System Open Market Account; all other figures increase such holdings. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • September 1984 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1984 1984 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 June July Aug. Consolidated condition statement ASSETS 1 Gold certificate account 11,099 11,099 11,099 11,099 11,098 11,100 11,099 11,098 2 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 3 Coin 445 446 455 460 462 435 444 454 Loans 4 To depository institutions 8,775 7,385 12,787 7,826 8,166 4,760 7,238 8,276 5 Other 0 0 0 0 0 0 0 0 Acceptances—Bought outright 6 Held under repurchase agreements 0 0 0 0 0 0 0 0 Federal agency obligations 7 Bought outright 8,494 8,494 8,494 8,494 8,494 8,501 8,499 8,494 8 Held under repurchase agreements 0 0 0 0 0 0 0 369 U.S. government securities Bought outright 9 Bills 65,421 64,729 58,758 64,461 63,123 66,928 64,774 62,425 10 Notes 63,870 63,870 63,894 63,894 63,894 63,870 63,870 63,894 11 Bonds 22,061 22,061 22,037 22,037 22,037 22,061 22,061 22,037 12 Total bought outright1 151,352 150,660 144,689 150,392 149,054 152,859 150,705 148,356 13 Held under repurchase agreements 0 0 0 0 0 0 0 4,827 14 Total U.S. government securities 151,352 150,660 144,689 150,392 149,054 152,859 150,705 153,183 15 Total loans and securities 168,621 166,539 165,970 166,712 165,714 166,120 166,442 170,322 16 Cash items in process of collection 8,496 7,720 7,541 6,457 6,130 6,350 9,747 6,808 17 Bank premises 555 556 555 556 556 556 555 554 Other assets 18 Denominated in foreign currencies2 3,638 3,640 3,643 3,646 3,651 3,733 3,638 3,672 19 All other3 4,801 5,049 3,754 3,987 4,047 5,297 4,821 4,064 20 Total assets 202,273 199,667 197,635 197,535 196,276 198,209 201,364 201,590 LIABILITIES 21 Federal Reserve notes 160,551 161,460 161,407 160,566 160,712 159,915 160,402 161,551 Deposits 22 To depository institutions 23,640 21,207 18,222 20,611 19,192 20,252 21,355 22,733 23 U.S. Treasury—General account 3,586 4,220 4,393 3,358 3,783 4,397 3,972 4,029 24 Foreign—Official accounts 256 228 205 233 215 237 215 242 25 Other 533 246 289 485 428 432 309 413 26 Total deposits 28,015 25,901 23,109 24,687 23,618 25,318 25,851 27,417 27 Deferred availability cash items 7,892 6,495 7,277 6,419 6,154 7,005 9,076 6,482 28 Other liabilities and accrued dividends4 2,530 2,379 2,404 2,422 2,356 2,528 2,463 2,591 29 Total liabilities 198,988 196,235 194,197 194,094 192,840 194,766 197,792 198,041 CAPITAL ACCOUNTS 30 Capital paid in 1,545 1,554 1,557 1,556 1,558 1,541 1,545 1,557 31 Surplus 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 32 Other capital accounts 275 413 416 420 413 437 562 527 33 Total liabilities and capital accounts 202,273 199,667 197,635 197,535 196,276 198,209 201,364 201,590 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 115,046 117,389 119,120 117,709 118,930 116,234 115,318 119,421 Federal Reserve note statement 35 Federal Reserve notes outstanding 188,565 188,662 188,886 189,108 189,348 187,637 188,428 189,217 36 LESS: Held by bank 28,014 27,202 27,479 28,542 28,636 27,722 28,026 27,666 37 Federal Reserve notes, net 160,551 161,460 161,407 160,566 160,712 159,915 160,402 161,551 Collateral held against notes net: 38 Gold certificate account 11,099 11,099 11,099 11,099 11,098 11,100 11,099 11,098 39 Special drawing rights certificate account 4,618 4,618 4,618 4,618 4,618 4,618 4,618 4,618 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 144,834 145,743 145,690 144,849 144,996 144,197 144,685 145,835 42 Total collateral 160,551 161,460 161,407 160,566 160,712 159,915 160,402 161,551 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. 2. Assets shown in this line are revalued monthly at market exchange rates. NOTE: Some of these data also appear in the Board's H.4.1 (503) release. For 3. includes special investment account at Chicago of Treasury bills maturing address, see inside front cover. within 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks; Banking Aggregates A11 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1984 1984 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 June 29 July 31 Aug. 31 1 Loans—Total 8,775 7,385 12,787 7,826 8,166 4,760 7,238 8,276 2 Within 15 days 8,554 7,169 12,496 7,792 8,109 4,674 7,135 8,111 3 16 days to 90 days 221 216 291 34 57 86 103 165 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 0 0 0 0 0 0 0 0 6 Within 15 days 0 0 0 0 0 0 0 0 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 151,352 150,660 144,689 150,392 149,054 152,859 150,705 153,183 10 Within 15 days' 5,542 7,032 3,583 7,254 7,293 5,129 3,013 8,544 n 16 days to 90 days 31,435 31,395 25,677 30,049 29,081 34,053 33,317 33,105 12 91 days to 1 year 44,702 42,560 47,268 44,928 44,519 45,112 44,702 44,040 13 Over 1 year to 5 years 36,329 36,329 33,985 33,985 33,985 35,138 36,329 33,318 14 Over 5 years to 10 years 14,256 14,256 14,808 14,808 14,808 14,339 14,256 14,808 15 Over 10 years 19,088 19,088 19,368 19,368 19,368 19,088 19,088 19,368 16 Federal agency obligations—Total 8,494 8,494 8,494 8,494 8,494 8,501 8,499 8,863 17 Within 15 days' 0 0 103 184 202 159 85 571 18 16 days to 90 days 613 698 685 604 523 519 613 523 19 91 days to 1 year 1,799 1,714 1,654 1,654 1,754 1,647 1,719 1,754 20 Over 1 year to 5 years 4,371 4,371 4,341 4,341 4,304 4,476 4,371 4,304 21 Over 5 years to 10 years 1,312 1,312 1,312 1,312 1,312 1,301 1,312 1,312 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 • September 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. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted ADJUSTED FOR 1 Total reserves2 30.64 31.51 33.63 35.28 35.28 35.50 36.07 36.10 36.10 36.43 37.23 37.18 2 Nonborrowed reserves 28.95 30.88 33.00 34.51 34.51 34.79 35.50 35.15 34.87 33.44 33.93 31.25 3 Nonborrowed reserves plus extended credit3 28.95 31.03 33.18 34.51 34.51 34.79 35.50 35.18 34.91 33.48 35.80 36.26 4 Required reserves 30.13 31.20 33.13 34.72 34.72 34.89 35.12 35.40 35.61 35.85 36.47 36.57 5 Monetary base4 150.11 157.82 169.81 184.97 184.97 186.94 188.58 188.72 189.66 191.26 193.12 194.03 Not seasonally adjusted 6 Total reserves2 31.34 32.23 34.35 36.00 36.00 37.30 35.65 35.63 36.46 35.76 36.76 36.80 7 Nonborrowed reserves 29.65 31.59 33.71 35.22 35.22 36.59 35.09 34.68 35.23 32.78 33.46 30.88 8 Nonborrowed reserves plus extended credit3 29.65 31.74 33.90 35.23 35.23 36.59 35.09 34.71r 35.28 32.81 35.33 35.89 9 Required reserves 30.82 31.91 33.85 35.44 35.44 36.69 34.71 34.92r 35.97 35.19 35.99 36.20 10 Monetary base4 152.80 160.65 172.83 188.23 188.23 188.10 185.93 187.17 189.66' 190.33 193.20 194.86 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 11 Total reserves2 40.66 41.93 41.85 38.89 38.89 40.12 36.37 36.28 37.15 36.52 37.52 37.46 12 Nonborrowed reserves 38.97 41.29 41.22 38.12 38.12 39.41 35.80 35.33 35.92 33.53 34.22 31.54 13 Nonborrowed reserves plus extended credit3 38.97 41.44 41.41 38.12 38.12 39.41 35.80 35.33 35.78 33.83 36.22 36.38 14 Required reserves 40.15 41.61 41.35 38.33 38.33 39.51 35.42 35.57 36.66 35.94 36.75 36.86 15 Monetary base4 163.00 170.47 180.52 192.36 192.36 192.30 186.67 187.81 190.34 191.08' 193.96 195.53 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 DDeecc.. DDeecc.. DDeecc.. DDeecc.. AApprr.. MMaayy JJuunnee JJuullyy Seasonally adjusted 1 Ml 414.9 441.9 480.5 525.3 535.3' 541.0' 546.2' 545.6 ? M2 1,632.6 1,796.6 1,965.3 2,196.2 2,242.8' 2,258.6' 2,271.6' 2,281.1 M3 1,989.8 2,236.7 2,460.3 2,708.0r 2,790.0' 2,816.1' 2,837.8' 2,858.8 4 L 2,326.0 2,598.4 2,868.7 3,178.1' 3,295.3' 3,327.3' 3,369.2 n.a. 5 Debt2 3,946.9 4,323.8 4,710.1 5,225.2' 5,452.6' 5,513.3' 5,565.6 n.a. Ml components 6 Currency2 116.7 124.0 134.1 148.0 151.8 152.9 154.2 115555..00 7 Travelers checks3 4.2 4.3 4.3 4.9 5.1 5.1 5.1 5.2 8 Demand deposits4 266.5 236.2 239.7 243.7 245.3 245.3 248.3 247.1 9 Other checkable deposits5 27.6 77.4 102.4 128.8 133.2 137.8 138.6' 138.3 Nontransactions components 10 In M26 1,217.7 1,354.6 1,484.8 1,670.9 1,707.5 1,717.5' 1,725.4' 1,735.5 11 In M3 only7 357.2 440.2 495.0 511.8' 547.1' 557.5' 566.2' 577.7 Savings deposits9 1? Commercial Banks 185.9 159.7 164.9 134.6 112288..66 112288..22 128.0 112277..44 13 Thrift Institutions 215.6 186.1 197.2 178.2 176.9 177.3 177.2 176.0 Small denomination time deposits' 14 Commerical Banks 287.5 349.6 382.2 353.1 356.0 360.5 365.7 371.8 15 Thrift Institutions 443.9 477.7 474.7 440.0 452.4 456.1' 463.3' 473.8 Money market mutual funds 16 General purpose and broker/dealer 61.6 150.6 185.2 138.2 146.0 146.5 148.8 150.4 17 Institution-only 15.0 36.2 48.4 40.3 41.8 42.0 42.3 42.6 Large denomination time deposits10 18 Commercial Banks" 213.9 247.3 261.8 225.5 236.4 243.8 249.7' 255.2 19 Thrift Institutions 44.6 54.3 66.1 100.4 119.5 123.8 129.4 134.0 Debt components 70 Federal debt 742.8 830.1 999911..44 1,173.1' 11,,223366..55'' 11,,225522..55'' 11,,226600..22 n.a. 21 Non-federal debt 3,204.1 3,493.7 3,718.7 4,052.1' 4,216.1' 4,260.9' 4,305.5 n.a. Not seasonally adjusted ?? Ml 424.8 452.3 491.9 537.8 543.2 543.9 545.5 547.3 73 M2 1,635.4 1,798.7 1,%7.4 2,198.0 2,254.7 2,253.5' 2,273.4' 2,286.3 74 M3 1,9%. 1 2,242.7 2,466.6 2,714.1' 2,798.5' 2,811.4' 2,836.5' 2,857.7 75 L 2,332.8 2,605.6 2,876.5 3,186.0' 3,306.8' 3,323.2' 3,365.2 n.a. 26 Debt2 3,946.9 4,323.8 4,710.1 5,219.2' 5,426.6' 5,486.8' 5,543.5 n.a. Ml components 27 Currency2 118.8 126.1 136.4 150.5 151.5 152.9 154.9 156.3 28 Travelers checks3 3.9 4.1 4.1 4.6 4.8 5.0 5.4 5.8 29 Demand deposits4 274.7 243.6 247.3 251.6 247.8 241.3 247.0 247.5 30 Other checkable deposits5 27.4 78.5 104.1 131.2 139.0 135.8 138.1' 137.8 Nontransactions components 31 M26 1,210.6 1,346.3 1,475.5 1,660.2 1,711.5 1,718.6' 1,728.0' 1,738.8 32 M3 only7 360.7 444.1 499.2 516.1' 543.8' 557.9' 563.1' 571.5 Money market deposit accounts 33 Commercial banks n.a. n.a. 26.3 230.0 245.4 244.3 244.9 243.9 34 Thrift institutions n.a. n.a. 16.6 145.9 151.0 150.2 148.0 145.0 Savings deposits8 35 Commercial Banks 183.8 157.5 162.1 132.0 130.5 129.9 129.7 112288..99 36 Thrift Institutions 214.4 184.7 195.5 176.5 178.1' 178.3 178.9 178.1 Small denomination time deposits9 37 Commercial Banks 286.0 347.7 380.1 351.0 356.5 360.5 365.4 370.7 38 Thrift Institutions 442.3 475.6 472.4 437.6 454.2 457.2' 463.7' 473.6 Money market mutual funds 39 General purpose and broker/dealer 61.6 150.6 185.2 138.2 146.0 146.5 148.8 150.4 40 Institution-only 15.0 36.2 48.4 40.3 41.8 42.0 42.3 42.6 Large denomination time deposits10 41 Commercial Banks" 218.5 252.1 266.2 229.0 233.7 241.6 247.3' 251.9 42 Thrift Institutions 44.3 54.3 66.2 100.7 118.2 123.3 128.2 132.8 Debt components 43 Federal debt 742.8 830.1 991.4 1,170.2 1,235.9 1,248.7 1,255.8 n.a. 44 Non-federal debt 3,204.1 3,943.7 3,718.7 4,049.0' 4,190.7' 4,238.1' 4,287.8 n.a. For notes see bottom of next page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 DomesticN onfinancial Statistics • September 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. 1984 Bank group, or type of customer 11998811'' 11998822'' 11998833'' Feb. Mar. Apr. May June July DEBITS TO Seasonally adjusted Demand deposits2 1 All insured banks 80,858.7 90,914.4 108,646.4 126,749.9 116,416.7 129,229.4 131,456.9 121,488.2 128,299.3 2 Major New York City banks 33,891.9 37,932.9 47,336.9 55,776.7 50,765.2 57,868.3 60,351.3 53,147.7 55.340.6 3 Other banks 46,966.9 52,981.6 61,309.5 70,973.1 65,651.5 71,361.1 71,105.6 68,340.4 72.958.7 4 ATS-NOW accounts3 743.4 1,036.2 1,394.9 1,491.1 1,464.9 1,432.1 1,608.9 1,515.8 1,658.9 5 Savings deposits4 672.7 721.4 735.7 708.3 688.9 606.5 688.8 677.9 682.4 DEPOSIT TURNOVER Demand deposits2 6 All insured banks 285.8 324.2 376.8 434.7 394.9 441.7 442.7 401.8 433.0 7 Major New York City banks 1,105.1 1,287.6 1,512.0 1,747.7 1,649.5 2,012.5 1,938.7 1,665.2 1,774.3 8 Other banks 186.2 211.1 238.5 273.3 248.7 270.5 267.5 252.7 275.2 9 ATS-NOW accounts3 14.0 14.5 15.5 15.0 14.7 14.6 16.0 15.1 16.6 10 Savings deposits4 4.1 4.5 5.3 5.5 5.4 4.8 5.5 5.4 5.5 Not seasonally adjusted DEBITS TO Demand deposits2 11 All insured banks 81,197.9 91,031.9 108,459.5 114,721.3 124,088.6 121,514.4 132,521.7 128,522.3 124,604.3 12 Major New York City banks 34,032.0 38,001.0 47.238.2 50,724.8 54,301.1 53,514.4 60,214.5 57,168.1 54,060.5 13 Other banks 47,165.9 53,030.9 61.221.3 63,996.5 69,787.5 68,000.0 72,307.2 71,354.3 70,543.8 14 ATS-NOW accounts3 737.6 1,027.1 1,387.5 1,389.5 1,504.3 1,670.1 1,599.0 1,621.7 1,598.5 15 MMDA5 0 0 567.4 682.1 790.3 918.9 883.6 894.8 891.7 16 Savings deposits4 672.9 720.0 736.4 649.9 711.9 665.7 673.8 686.2 686.3 DEPOSIT TURNOVER Demand deposits2 17 All insured banks 286.1 325.0 376.1 402.7 431.8 410.8 456.8 428.6 418.1 18 Major New York City banks 1,114.2 1,295.7 1,510.0 1,618.7 1,795.5 1,770.2 1,997.1 1,792.0 1,738.1 19 Other banks 186.2 211.5 238.1 252.4 271.4 256.0 278.1 266.3 264.3 20 ATS-NOW accounts3 14.0 14.3 15.4 14.3 15.2 16.4 16.1 16.2 16.0 21 MMDA5 0 0 2.8 2.9 3.3 3.8 3.6 3.7 3.7 22 Savings deposits4 4.1 4.5 5.3 5.1 5.5 5.2 5.3 5.4 5.4 1. Annual averages of monthly figures. NOTE. Historical data for demand deposits are available back to 1970 estimated 2. Represents accounts of individuals, partnerships, and corporations and of in part from the debits series for 233 SMSAs that were available through June states and political subdivisions. 1977. Historical data for ATS-NOW and savings deposits are available back to 3. Accounts authorized for negotiable orders of withdrawal (NOW) and ac- July 1977. Back data are available on request from the Banking Section, Division counts authorized for automatic transfer to demand deposits (ATS). ATS data of Research and Statistics, Board of Governors of the Federal Reserve System, availability starts with December 1978. Washington, D.C. 20551. 4. Excludes ATS and NOW accounts, MMDA and special club accounts, such as Christmas and vacation clubs. These data also appear on the Board's G.6 (406) release. For address, see inside 5. Money market deposit accounts. front cover. NOTES TO TABLE 1.21 1. Composition of the money stock measures and debt is as follows: 2. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of Ml: (1) currency outside the Treasury, Federal Reserve Banks, and the vaults commercial banks. Excludes the estimated amount of vault cash held by thrift of commercial banks; (2) travelers checks of nonbank issuers; (3) demand deposits institutions to service their OCD liabilities. at all commercial banks other than those due to domestic banks, the U.S. 3. Outstanding amount of U.S. dollar-denominated travelers checks of nongovernment, and foreign banks and official institutions less cash items in the bank issuers. Travelers checks issued by depository institutions are included in process of collection and Federal Reserve float; and (4) other checkable deposits demand deposits. (OCD) consisting of negotiable order of withdrawal (NOW) and automatic transfer 4. Demand deposits at commercial banks and foreign-related institutions other service (ATS) accounts at depository institutions, credit union share draft than those due to domestic banks, the U.S. government, and foreign banks and accounts, and demand deposits at thrift institutions. The currency and demand official institutions less cash items in the process of collection and Federal deposit components exclude the estimated amount of vault cash and demand Reserve float. Excludes the estimated amount of demand deposits held at deposits respectively held by thrift institutions to service their OCD liabilities. commercial banks by thrift institutions to service their OCD liabilities. M2: Ml plus overnight (and continuing contract) repurchase agreements (RPs) 5. Consists of NOW and ATS balances at all depository institutions, credit issued by all commercial banks and overnight Eurodollars issued to U.S. residents union share draft balances, and demand deposits at thrift institutions. Other by foreign branches of U.S. banks worldwide, MMDAs, savings and small- checkable deposits seasonally adjusted equals the difference between the seasondenomination time deposits (time deposits—including retail RPs—in amounts of ally adjusted sum of demand deposits plus OCD and seasonally adjusted demand less than $100,000), and balances in both taxable and tax-exempt general purpose deposits. Included are all ceiling free "Super NOWs," authorized by the and broker/dealer money market mutual funds. Excludes individual retirement Depository Institutions Deregulation committee to be offered beginning Jan. 5, accounts (IRA) and Keogh balances at depository institutions and money market 1983. funds. Also excludes all balances held by U.S. commercial banks, money market 6. Sum of overnight RPs and overnight Eurodollars, money market fund funds (general purpose and broker/dealer), foreign governments and commercial balances (general purpose and broker/dealer), MMDAs, and savings and small banks, and the U.S. government. Also subtracted is a consolidation adjustment time deposits, less the consolidation adjustment that represents the estimated that represents the estimated amount of demand deposits and vault cash held by amount of demand deposits and vault cash held by thrift institutions to service thrift institutions to service their time and savings deposits. their time and savings deposits liabilities. M3: M2 plus large-denomination time deposits and term RP liabilities (in 7. Sum of large time deposits, term RPs and term Eurodollars of U.S. amounts of $100,000 or more) issued by commercial banks and thrift institutions, residents, money market fund balances (institution-only), less a consolidation term Eurodollars held by U.S. residents at foreign branches of U.S. banks adjustment that represents the estimated amount of overnight RPs and Eurodolworldwide and at all banking offices in the United Kingdom and Canada, and lars held by institution-only money market funds. balances in both taxable and tax-exempt, institution-only money market mutual 8. Savings deposits exclude MMDAs. funds. Excludes amounts held by depository institutions, the U.S. government, 9. Small-denomination time deposits—including retail RPs— are those issued money market funds, and foreign banks and official institutions. Also subtracted is in amounts of less than $100,000. All individual retirement accounts (IRA) and a consolidation adjustment that represents the estimated amount of overnight RPs Keogh accounts at commercial banks and thrifts are subtracted from small time and Eurodollars held by institution-only money market mutual funds. deposits. L: M3 plus the nonbank public holdings of U.S. savings bonds, short-term 10. Large-denomination time deposits are those issued in amounts of $100,000 Treasury securities, commercial paper and bankers acceptances, net of money or more, excluding those booked at international banking facilities. market mutual fund holdings of these assets. 11. Large-denomination time deposits at commercial banks less those held by Debt: Debt of domestic nonfinancial sectors consists of outstanding credit money market mutual funds, depository institutions, and foreign banks and market debt of the U.S. government, state and local governments, and private official institutions. nonfinancial sectors. Private debt consists of corporate bonds, mortgages, consumer credit (including bank loans), other bank loans, commercial paper, bankers NOTE: Latest monthly and weekly figures are available from the Board's H.6 acceptances, and other debt instruments. The source of data on domestic (508) release. Historical data are available from the Banking Section, Division of nonfinancial debt is the Federal Reserve Board's flow of funds accounts. Debt Research and Statistics, Board of Governors of the Federal Reserve System, Digitized fodr aFtaR aAre SonE aRn end-of-month basis. Washington, D.C. 20551. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A15 1.23 LOANS AND SECURITIES All Commercial Banks' Billions of dollars; averages of Wednesday figures 1982 1983 1984 1982 1983 1984 CCaatteeggoorryy Dec. Dec. Apr. May June July Dec. Dec. Apr. May June July Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,412.0 1,566.5 1,630.6 1,650.1 1,653.2 1,665.4 1,422.4 1,577.8 1,630.1 1,643.0 1,650.5 1,658.6 2 U.S. Treasury securities 130.9 188.0 185.9 186.4 182.0 183.1 131.5 188.8 189.2 185.6 182.5 181.7 3 Other securities 239.2 247.5 250.5 249.6 247.9 247.3 240.6 249.0 250.4 249.8 247.6 246.1 4 Total loans and leases3 11,,004422..00 1,131.0 1,194.2 1,214.0 1,223.3 1,235.0 1,050.3 1,140.0 1,190.4 1,207.6 1,220.4 1,230.8 5 Commercial and industrial loans 392.3 413.8 437.2 447.6 453.2 456.7 394.5 416.2 439.7 447.7 452.4 455.3 6 Real estate loans 303.1 334.6 350.5 354.6 359.3 362.7 304.0 335.6 349.4 353.2 357.5 361.6 7 Loans to individuals 191.9 219.2 235.3 239.7 243.9 248.2 193.2 220.7 233.6 238.3 242.9 247.0 8 Security loans 24.7 27.3 26.9 27.2 24.6 24.7 25.5 28.2 26.9 26.1 25.8 24.1 9 Loans to nonbank financial institutions 31.1 29.7 30.9 31.7 31.9 32.1 32.1 30.6 30.7 31.3 31.5 31.5 10 Agricultural loans 36.3 39.6 40.6 40.8 41.0 41.1 36.3 39.6 39.9 40.6 41.2 41.6 11 Lease financing receivables... 13.1 13.1 13.5 13.6 13.7 13.7 13.1 13.1 13.5 13.6 13.7 13.7 12 All other loans 49.5 53.7 59.5 59.0 55.9 55.7 51.5 55.9 56.8 56.9 55.5 56.0 MEMO 13 Total loans and securities plus loans sold3'4 1,415.0 1,568.9 1,633.7 1,652.9 1,655.9 1,668.3 1,425.4 1,580.2 1,633.2 1,645.8 1,653.2 1,661.4 14 Total loans plus loans sold3-4 ... 1,044.9 1,133.4 1,197.4 1,216.9 1,226.0 1,237.8 1,053.3 1,142.4 1,193.5 1,210.4 1,223.1 1,233.7 15 Total loans sold to affiliates3'4... 2.9 2.4 3.1 2.8 2.7 2.9 2.9 2.4 3.1 2.8 2.7 2.9 16 Commercial and industrial loans plus loans sold4 394.5 415.6 439.1 449.5 455.2 458.8 396.8 418.0 441.6 449.7 454.4 457.3 17 Commercial and industrial loans sold4 2.3 1.8 1.9 2.0 1.9 2.0 2.3 1.8 1.9 2.0 1.9 2.0 18 Acceptances held 8.5 8.2 9.6 9.9 9.6 10.1 9.5 9.1 8.8 9.3 9.7 10.1 19 Other commercial and industrial loans 383.7 405.5 427.6 437.7 443.6 446.6 385.1 407.1 430.8 438.4 442.8 445.2 20 To U.S. addressees5 373.4 395.3 415.5 424.7 430.6 434.2 372.6 394.5 418.9 426.6 431.2 433.2 21 To non-U.S. addressees.... 10.3 10.3 12.1 12.9 13.0 12.5 12.4 12.6 12.0 11.8 11.6 12.0 22 Loans to foreign banks 13.5 12.7 13.0 12.7 12.6 12.5 14.5 13.6 12.5 12.2 12.2 12.2 1. Includes domestically chartered banks; U.S. branches and agencies of 5. United States includes the 50 states and the District of Columbia. foreign banks, New York investment companies majority owned by foreign banks, and Edge Act corporations owned by domestically chartered and foreign NOTE. Data are prorated averages of Wednesday estimates for domestically banks. chartered banks, based on weekly reports of a sample of domestically chartered 2. Beginning December 1981, shifts of foreign loans and securities from U.S. banks and quarterly reports of all domestically chartered banks. For foreignbanking offices to international banking facilities (IBFs) reduced the levels of related institutions, data are averages of month-end estimates based on weekly several items. Seasonally adjusted data that include adjustments for the amounts reports from large agencies and branches and quarterly reports from all agencies, shifted from domestic offices to IBFs are available in the Board's G.7 (407) branches, investment companies, and Edge Act corporations engaged in banking. statistical release (available from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551). These data also appear in the Board's G.7 (407) release. For address, see inside 3. Excludes loans to commercial banks in the United States. front cover. 4. Loans sold are those sold outright to a bank's own foreign branches, nonconsolidated nonbank affiliates of the bank, the bank's holding company (if not a bank), and nonconsolidated nonbank subsidiaries of the holding company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 DomesticN onfinancial Statistics • September 1984 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars 1981 1982 1983 1984 source Dec. Dec. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total nondeposit funds 1 Seasonally adjusted2 96.3 82.9 85.4 82.0 96.3 100.3 98.2 102.3 108.1 111.7 116.7 105.3 105.9 2 Not seasonally adjusted 98.1 84.9 86.5 83.0 99.6 102.5 99.3 103.8 109.5 112.9 121.0 108.2 106.3 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.8 127.7 134.2 135.2 140.8 140.7 139.4 143.0 141.8 142.3 142.4 136.8 137.5 4 Not seasonally adjusted 113.5 129.7 135.3 136.2 144.1 142.8 140.4 144.5 143.3 143.5 146.7 139.6 137.9 5 Net balances due to foreign-related institutions, not seasonally adjusted -18.1 -47.7 -51.3 -55.7 -47.0 -42.7 -43.6 -43.2 -36.9 -33.8 -28.5 -34.1 -34.4 6 Loans sold to affiliates, not seasonally adjusted4 2.8 2.9 2.6 2.6 2.5 2.4 2.4 2.5 3.1 3.1 2.8 2.7 2.9 MEMO 7 Domestically chartered banks' net positions with own foreign branches, not seasonally adjusted5 -22.4 -39.6 -46.3 -48.5 -43.0 -39.8 -38.8 -39.0 -34.9 -33.2 -29.9 -32.9' -33.0 8 Gross due from balances 54.9 72.2 74.7 76.4 76.5 75.3 73.2 74.7 73.8 73.6 73.5 73.8 71.2 9 Gross due to balances 32.4 32.6 28.3 27.9 33.6 35.5 34.5 35.7 38.8 40.3 43.6 40.8 38.1 10 Foreign-related institutions' net positions with directly related institutions, not seasonally adjusted6 4.3 -8.1 -5.0 -7.2 -4.0 -3.0 -4.8 -4.2 -1.9 -0.6 1.4 -1.2' -1.4 11 Gross due from balances 48.1 54.7 53.5 55.5 53.5 54.1 53.4 53.0 50.2 49.7 50.(V 51.C 52.2 12 Gross due to balances 52.4 46.6 48.5 48.3 49.5 51.1 48.6 48.8 48.3 49.2 51.4' 49.8 50.8 Security RP borrowings 13 Seasonally adjusted" 59.0 71.0 78.1 79.9 83.3 84.8 85.5 86.9 85.5 86.9 84.0 79.0 79.9 14 Not seasonally adjusted 59.2 71.2 77.3 79.1 84.6 85.1 84.6 86.5 85.1 86.2 86.4 80.0 78.4 U.S. Treasury demand balances8 15 Seasonally adjusted 12.2 12.8 16.7 18.9 12.0 13.1 16.5 20.6 16.7 15.9 12.2 12.9 11.7 16 Not seasonally adjusted 11.1 10.8 17.9 24.7 7.5 10.8 19.6 22.3 17.5 16.5 12.8 12.4 11.8 Time deposits, $100,000 or more9 17 Seasonally adjusted 325.4 347.9 282.8 278.3 280.7 283.1 284.4 283.8 289.2 292.4' 302.9' 312.7' 315.8 18 Not seasonally adjusted 330.4 354.6 284.7 280.3 283.0 288.1 287.1 285.0 288.8 288.7 298.8' 307.7' 311.6 1. Commercial banks are those in the 50 states and the District of Columbia banks and averages of current and previous month-end data for foreign-related with national or state charters plus agencies and branches of foreign banks, New institutions. York investment companies majority owned by foreign banks, and Edge Act 4. Loans initially booked by the bank and later sold to affiliates that are still corporations owned by domestically chartered and foreign banks. held by affiliates. Averages of Wednesday data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 5. Averages of daily figures for member and nonmember banks. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 6. Averages of daily data. Includes averages of Wednesday data for domestically chartered banks and 7. Based on daily average data reported by 122 large banks. averages of current and previous month-end data for foreign-related institutions. 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at 3. Other borrowings are borrowings on any instrument, such as a promissory commercial banks. Averages of daily data. note or due bill, given for the purpose of borrowing money for the banking 9. Averages of Wednesday figures. business. This includes borrowings from Federal Reserve Banks and from foreign banks, term federal funds, overdrawn due from bank balances, loan RPs, and NOTE. These data also appear in the Board's G. 10 (411) release. For address see participations in pooled loans. Includes averages of daily figures for member inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banking Institutions A17 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1982 1983 Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. DOMESTICALLY CHARTERED COMMERCIAL BANKS' 1 Loans and securities, excluding interbank 1,370.3 1,392.2 1,403.8 1,411.9 1,435.1 1,437.4 1,457.0 11,,446666..11 11,,448833..00 11,,550022..33 11,,552255..22 2 Loans, excluding interbank 1,000.7 1,001.7 1,005.1 1,007.5 1,025.6 1,029.1 1,043.4 1,049.7 1,060.3 1,075.5 1,095.1 3 Commercial and industrial 356.7 358.0 357.9 356.7 360.1 361.1 363.0 364.0 367.0 372.8 380.8 4 Other 644.0 643.7 647.2 650.8 665.6 668.0 680.4 685.7 693.3 702.7 714.4 5 U.S. Treasury securities 129.0 150.6 155.5 160.9 166.0 165.1 167.5 171.2 176.8 180.4 181.4 6 Other securities 240.5 239.9 243.3 243.5 243.5 243.3 246.1 245.2 245.9 246.4 248.7 7 Cash assets, total 184.4 168.9 170.1 164.5 176.9 168.7 176.9 160.0 164.0 179.0 190.5 8 Currency and coin 23.0 19.9 20.4 20.3 21.3 20.7 21.0 20.8 20.5 22.3 23.3 9 Reserves with Federal Reserve Banks 25.4 20.5 23.9 22.4 18.8 20.6 22.5 15.4 19.7 17.6 18.6 10 Balances with depository institutions . 67.6 67.1 66.1 65.6 69.7 67.1 69.0 66.7 67.1 70.9 75.6 11 Cash items in process of collection ... 68.4 61.5 59.6 56.3 67.1 60.3 64.4 56.9 56.6 69.0 73.0 12 Other assets2 265.3 257.9 252.4 248.3 253.2 254.5 257.2 252.3 253.0 261.9 253.8 13 Total assets/total liabilities and capital ... 1,820.0 1,818.9 1,826.3 1,824.8 1,865.2 1,860.6 1,891.0 1,878.4 1,900.0 1,943.9 1,969.5 14 Deposits 1,361.8 1,374.2 1,368.0 1,370.8 1,402.7 1,396.5 1,420.1 1,408.1 1,419.5 1,459.2 1,482.6 15 Demand 363.9 333.4 329.2 324.5 344.4 334.2 344.7 328.1 331.3 358.1 371.0 16 Savings 296.4 419.2 426.9 440.2 445.3 447.5 449.0 448.8 451.5 458.3 460.7 17 Time 701.5 621.6 611.9 606.1 613.1 614.8 626.4 631.2 636.8 642.8 650.8 18 Borrowings 215.1 211.3 224.0 214.1 221.2 217.5 217.2 217.8 226.8 219.7 216.3 19 Other liabilities 109.2 103.5 102.3 104.7 104.3 105.5 107.6 107.1 106.5 112.6 117.9 20 Residual (assets less liabilities) 133.8 130.0 132.0 135.1 137.0 141.0 146.1 145.4 147.2 152.4 152.8 MEMO 21 U.S. Treasury note balances included in borrowing 10.7 9.6 17.8 2.7 19.3 19.3 14.8 20.8 22.5 22..88 8.8 22 Number of banks 14,787 14,819 14,823 14,817 14,826 14,785 14,795 14,804 14,800 14,799 14,796 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,429.7 1,451.3 1,460.8 1,467.6 1,491.5 1,494.1 1,515.4 11,,552255..44 1,541.8 11,,556633..22 11,,558866..88 24 Loans, excluding interbank 1,054.8 1,054.5 1,055.7 1,056.4 1,075.2 1,078.8 1,094.9 1,102.5 1,112.2 1,129.2 1,149.3 25 Commercial and industrial 395.3 395.9 393.5 391.7 395.3 397.7 400.6 402.7 405.3 412.0 420.1 26 Other 659.5 658.6 662.2 664.7 679.9 681.2 694.3 699.8 706.8 717.2 729.2 27 U.S. Treasury securities 132.8 155.3 160.2 166.1 171.3 170.3 172.7 176.1 182.0 185.9 186.9 28 Other securities 242.1 241.5 244.9 245.2 245.1 245.0 247.8 246.9 247.7 248.1 250.6 29 Cash assets, total 200.7 185.5 186.3 180.3 193.5 185.2 193.3 174.7 178.4 195.0 205.0 30 Currency and coin 23.0 19.9 20.4 20.3 21.3 20.7 21.1 20.9 20.5 22.3 23.4 31 Reserves with Federal Reserve Banks 26.8 22.0 25.4 23.8 20.0 21.9 24.0 16.6 20.8 19.1 19.7 32 Balances with depository institutions . 81.4 81.0 79.8 78.9 84.0 81.2 82.8 79.3 79.5 83.6 88.0 33 Cash items in process of collection ... 69.4 62.6 60.7 57.3 68.2 61.4 65.4 58.0 57.6 70.0 74.0 34 Other assets2 341.7 325.4 317.8 309.5 318.1 318.7 324.6 320.9 318.8 329.7 321.3 35 Total assets/total liabilities and capital ... 1,972.1 1,962.2 1,964.9 1,957.4 2,003.2 1,998.0 2,033.3 2,021.0 2,039.1 2,088.0 2,113.1 36 Deposits 1,409.7 1,419.5 1,411.0 1,413.1 1,443.8 1,438.1 1,461.4 1,448.9 1,459.0 1,499.4 1,524.8 37 Demand 376.2 345.7 341.1 336.4 356.4 346.4 356.6 340.0 343.2 369.9 383.2 38 Savings 296.7 419.7 427.3 440.7 445.7 448.0 449.5 449.3 452.0 458.8 461.3 39 Time 736.7 654.1 642.6 636.0 641.6 643.8 655.3 659.5 663.8 670.6 680.4 40 Borrowings 278.3 269.9 281.3 269.5 278.2 277.9 280.5 282.6 289.6 282.5 275.1 41 Other liabilities 148.4 141.1 138.6 137.9 142.3 139.1 143.4 142.3 141.5 151.9 158.6 42 Residual (assets less liabilities) 135.7 131.9 133.9 137.0 138.9 142.9 148.0 147.3 149.1 154.2 154.7 MEMO 43 U.S. Treasury note balances included in borrowing 10.7 9.6 17.8 2.7 19.3 19.3 14.8 2200..88 2222..55 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 • September 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 Account July 4r July 1 lr July 18r July 25' Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 1 Cash and balances due from depository institutions 105,493 88,069 92,199 82,089 95,104 84,176 87,852 82,529 81,314 2 Total loans, leases and securities, net 771,470 760,485 763,508 762,057 769,688 765,136 773,111 765,432 767,985 Securities 3 U.S. Treasury and government agency 73,263 74,985 72,381 72,955 73,539 74,413 75,370 75,881 75,068 4 Trading account 8,692 10,987 8,629 9,164 9,944 11,039 11,786 12,440 11,613 5 Investment account, by maturity 64,571 63,998 63,752 63,791 63,594 63,374 63,585 63,441 63,456 6 One year or less 17,270 16,448 16,196 16,018 16,762 16,713 16,895 16,717 16,717 7 Over one through five years 34,995 35,282 35,304 35,490 34,646 34,554 34,578 34,628 34,573 8 Over five years 12,306 12,268 12,252 12,282 12,186 12,107 12,112 12,096 12,166 9 Other securities 46,591 46,029 46,253 46,490 47,208 47,397 47,953 47,909 48,091 10 Trading account 4,443 3,818 3,905 4,077 4,919 5,010 5,500 5,309 5,435 11 Investment account 42,148 42,211 42,348 42,412 42,289 42,387 42,453 42,600 42,656 12 States and political subdivisions, by maturity 38,502 38,533 38,666 38,740 38,660 38,740 38,825 38,911 38,975 13 One year or less 3,909 4,031 4,077 4,121 4,227 4,254 4,343 4,484 4,469 14 Over one year 34,594 34,501 34,589 34,619 34,433 34,485 34,481 34,427 34,506 15 Other bonds, corporate stocks, and securities 3,645 3,678 3,682 3,672 3,629 3,647 3,628 3,689 3,681 16 Other trading account assets 2,411 2,508 2,575 2,486 2,596 2,792 2,673 2,759 2,902 Loans and leases 17 Federal funds sold1 48,552 41,828 47,467 42,963 47,009 43,708 47,700 42,658 44,941 18 To commercial banks 34,746 28,543 34,124 29,874 34,029 31,341 33,526 30,137 32,984 19 To nonbank brokers and dealers in securities 9,146 8,436 8,464 8,092 7,920 7,284 8,444 7,468 7,123 20 To others 4,660 4,849 4,880 4,998 5,059 5,084 5,729 5,053 4,834 21 Other loans and leases, gross 615,819 610,311 610,012 612,396 614,692 612,256 614,882 611,712 612,516 22 Other loans, gross 604,012 598,596 598,286 600,621 602,835 600,382 602,868 599,652 600,400 23 Commercial and industrial 244,361 243,166 244,015 243,910 244,856 245,010 243,893 243,055 242,089 24 Bankers acceptances and commercial paper 4,267 4,301 4,032 3,877 4,053 3,702 3,564 3,848 3,511 25 All other 240,094 238,866 239,983 240,033 240,803 241,308 240,329 239,207 238,577 26 U.S. addressees 233,509 232,218 233,348 233,440 234,162 234,721 233,778 232,750 232,114 27 Non-U.S. addressees 6,585 6,648 6,635 6,593 6,640 6,587 6,551 6,457 6,463 28 Real estate loans 150,882 151,316 152,020 151,845 152,395 152,334 152,942 153,132 153,301 29 To individuals for personal expenditures 99,440 99,652 100,073 100,543 100,938 101,191 101,713 102,187 102,961 30 To depository and financial institutions 43,189 41,624 41,154 41,366 41,678 40,959 40,330 40,046 40,293 31 Commercial banks in the United States 10,065 9,129 8,920 9,194 9,410 9,307 8,629 8,568 8,718 32 Banks in foreign countries 6,779 6,552 6,349 6,683 6,688 6,346 6,204 6,359 6,103 33 Nonbank depository and other financial institutions. 26,345 25,943 25,886 25,489 25,580 25,306 25,496 25,119 25,471 34 For purchasing and carrying securities 14,311 12,224 11,340 12,252 12,806 11,449 13,317 11,409 11,494 35 To finance agricultural production 7,737 7,757 7,803 7,744 7,595 7,580 7,561 7,508 7,510 36 To states and political subdivisions 25,105 25,321 24,621 24,611 24,788 24,680 25,607 25,756 25,806 37 To foreign governments and official institutions .... 4,292 4,140 4,107 4,039 4,008 4,030 4,084 3,928 4,058 38 All other 14,694 13,396 13,152 14,311 13,769 13,150 13,420 12,630 12,887 39 Lease financing receivables 11,807 11,714 11,726 11,775 11,857 11,873 12,013 12,060 12,115 40 LESS: Unearned income 5,117 5,160 5,159 5,162 5,151 5,137 5,145 5,155 5,167 41 Loan and lease reserve 10,049 10,016 10,021 10,072 10,204 10,293 10,322 10,333 10,366 42 Other loans and leases, net 600,653 595,136 594,832 597,163 599,336 596,825 599,414 596,224 596,982 43 All other assets 145,922 142,793 139,402 137,220 142,740 142,928 145,140 136,751 136,231 44 Total assets 1,022,884 991,348 995,109 981,367 1,007,532 992,240 1,006,103 984,712 985,529 Deposits 45 Demand deposits 204,450 180,627 180,548 173,338 188,441 176,596 188,358 171,246 172,628 46 Individuals, partnerships, and corporations 153,670 138,986 137,083 132,462 142,199 133,558 141,582 131,037 131,817 47 States and political subdivisions 5,444 4,799 4,938 4,633 6,120 4,559 4,739 4,526 4,435 48 U.S. government 1,417 2,191 3,035 1,741 1,200 2,366 3,011 2,082 2,143 49 Depository institutions in United States 27,510 20,592 21,200 19,218 23,298 19,713 22,418 20,028 19,161 50 Banks in foreign countries 6,519 5,914 5,913 6,218 6,143 5,912 6,242 5,585 6,097 51 Foreign governments and official institutions 1,140 900 866 1,017 696 863 1,023 998 826 52 Certified and officers' checks 8,751 7,246 7,513 8,048 8,784 9,625 9,343 6,990 8,149 53 Transaction balances other than demand deposits (ATS, NOW, Super NOW, telephone transfers).. 34,400 33,446 33,033 32,338 33,356 33,427 33,069 32,561 32,261 54 Nontransaction balances 432,311 432,224 432,202 433,577 434,057 435,310 436,508 436,110 436,107 55 Individuals, partnerships and corporations 401,599 401,740 401,848 402,699 403,134 403,648 404,223 403,648 403,344 56 States and political subdivisions 19,027 19,225 19,433 19,898 19,808 20,269 20,736 20,959 21,158 57 U.S. government 337 311 307 314 331 312 319 315 325 58 Depository institutions in the United States 8,101 7,740 7,506 7,4% 7,528 7,562 7,721 7,744 7,848 59 Foreign governments, official institutions and banks .. 3,247 3,207 3,108 3,171 3,256 3,517 3,508 3,444 3,431 60 Liabilities for borrowed money 183,116 180,492 183,679 177,215 187,492 184,805 186,066 183,116 185,432 61 Borrowings from Federal Reserve Banks 4,445 4,000 6,235 6,217 8,040 6,750 12,075 6,992 7,260 62 Treasury tax-and-loan notes 2,459 7,575 6,238 7,923 9,986 2,492 1,450 5,415 4,688 63 All other liabilities for borrowed money2 176,212 168,916 171,206 163,075 169,466 175,563 172,541 170,710 173,484 64 Other liabilities and subordinated note and debentures 101,733 97,539 98,839 98,062 96,874 94,670 94,985 94,410 91,919 65 Total l » i abilities 956,010 924,328 928,301 914,530 940,221 924,809 938,986 917,444 918,346 66 Residual (total assets minus total liabilities)3 66,874 67,019 66,808 66,838 67,311 67,431 67,116 67,268 67,183 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. NOTE. These data also appear in the Board's H.4.2 (504) release. For address, see inside front cover. 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 July 4 July 11 July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 1 Cash and balances due from depository institutions 23,864 20,219 22,330 20,861 24,644 22,135 22,312 19,834 20,925 2 Total loans, leases and securities, net1 168,956^ 161,414' 164,266' 163,239' 164,288 159,920 163,676 159,552 160,028 Securities 3 U.S. Treasury and government agency2 4 Trading account2 5 Investment account, by maturity 9,419 9,441 9,440 9,405 9,348 9,186 9,520 9,639 9,538 6 One year or less 1,832 1,695 1,650 1,658 1,687 1,647 1,670 1,734 1,733 7 Over one through five years 6,449 6,599 6,642 6,603 6,516 6,397 6,698 6,749 6,648 8 Over five years 1,138 1,147 1,148 1,144 1,144 1,143 1,152 1,157 1,157 9 Other securities2 10 Trading account2 11 Investment account 9,052 9,083 9,155 9,162 9,138 9,212 9,260 9,380 9,429 12 States and political subdivisions, by maturity 8,384 8,406 8,479 8,486 8,513 8,581 8,630 8,710 8,762 13 One year or less 1,055 1,072 1,085 1,095 1,178 1,193 1,258 1,342 1,366 14 Over one year 7,328 7,333 7,394 7,391 7,335 7,388 7,373 7,368 7,396 15 Other bonds, corporate stocks and securities 668 677 676 676 624 631 629 670 667 16 Other trading account assets2 Loans and leases 17 Federal funds sold3 17,657' 13,299' 16,474' 13,525' 14,636 11,994 14,192 11,640 12,683 18 To commercial banks IO.SSC 6,858' 9,855' 7,58C 8,795 6,524 8,345 6,440 7,372 19 To nonbank brokers and dealers in securities 4,455' 3,765' 3,924' 3,387' 3,331 2,952 3,147 2,652 2,585 20 To others 2,353' 2,675' 2,696' 2,558' 2,510 2,518 2,700 2,548 2,725 21 Other loans and leases, gross 137,319 134,104 133,705 135,665' 135,711 134,097 135,288 133,469 132,980 22 Other loans, gross 135,295 132,080 131,670 133,621' 133,645 132,024 133,121 131,292 130,802 23 Commercial and industrial 64,843' 64,294' 64,542' 64,457' 64,730 64,686 64,230 64,082 63,745 24 Bankers acceptances and commercial paper 756 780 736 782 960 740 662 909 700 25 All other 64,087' 63,514' 63,806^ 63,674' 63,770 63,946 63,568 63,174 63,045 26 U.S. addressees 62,893' 62,363' 62,707' 62,611' 62,681 62,913 62,544 62,184 62,050 27 Non-U.S. addressees 1,194 1,151 1,099 1,064 1,089 1,032 1,023 990 995 28 Real estate loans 22,014 22,224 22,294 21,997 22,258 22,351 22,455 22,430 22,521 29 To individuals for personal expenditures 14,699' 14,732' 14,807' 14,853' 14,756 14,804 14,826 14,910 15,027 30 To depository and financial institutions 13,398 12,700 12,642 12,846' 12,870 12,450 12,240 12,338 11,981 31 Commercial banks in the United States 2,379 1,860 1,891 1,754' 1,751 1,648 1,410 1,556 1,506 32 Banks in foreign countries 2,318 2,288 2,228 2,558' 2,640 2,384 2,264 2,372 2,035 33 Nonbank depository and other financial institutions 8,702 8,552 8,522 8,534 8,479 8,418 8,565 8,410 8,440 34 For purchasing and carrying securities 7,160 5,590 5,041 5,965 6,308 5,184 6,623 5,338 5,056 35 To finance agricultural production 472 480 470 460 359 359 317 311 315 36 To states and political subdivisions 7,712 7,856 7,800 7,848 8,070 7,957 8,027 8,180 8,160 37 To foreign governments and official institutions 594 426 381 384' 347 412 496 327 443 38 All other 4,402 3,777 3,693 4,811' 3,947 3,821 3,908 3,375 3,556 39 Lease financing receivables 2,024 2,023 2,036 2,044 2,066 2,072 2,166 2,177 2,178 40 LESS: Unearned income 1,511 1,536 1,531 1,526 1,519 1,506 1,509 1,497 1,501 41 Loan and lease reserve 2,979 2,977 2,977 2,992 3,025 3,063 3,076 3,079 3,102 42 Other loans and leases, net 132,828 129,591 129,197 131,146' 131,166 129,528 130,703 128,893 128,378 43 All other assets4 68,199' 67,784' 64,003' 63,191' 67,025 70,527 73,370 67,380 67,315 44 Total assets 261,02<K 249,417' 250,599' 247,291' 255,957 252,582 259,358 246,766 248,268 Deposits 45 Demand deposits 52,565 43,798 46,083 46,255' 49,402 46,121 50,650 42,622 45,175 46 Individuals, partnerships, and corporations 35,372 29,980 31,223 31,001' 33,448 30,172 33,283 28,939 30,323 47 States and political subdivisions 863 704 896 610 712 603 686 534 512 48 U.S. government 249 504 688 392 168 423 639 403 460 49 Depository institutions in the United States 6,470 4,406 4,690 4,358' 5,932 4,228 5,6% 4,742 4,400 50 Banks in foreign countries 5,116 4,591 4,526 4,92 (V 4,803 4,574 4,855 4,226 4,782 51 Foreign governments and official institutions 932 704 664 814' 519 617 824 790 616 52 Certified and officers' checks 3,563 2,909 3,394 4,160 3,820 5,503 4,667 2,988 4,082 53 Transaction balances other than demand deposits ATS, NOW, Super NOW, telephone transfers) .. 3,812 3,716 3,707 3,540 3,615 3,593 3,552 3,491 3,453 54 Nontransaction balances 78,750 78,278 78,531 79,536 80,171 80,912 81,758 80,729 80,576 55 Individuals, partnerships and corporations 71,248 70,723 71,066 71,850 72,226 72,534 73,284 72,190 72,039 56 States and political subdivisions 2,892 2,919 3,028 3,178 3,255 3,581 3,848 3,959 4,026 57 U.S. government 33 29 29 35 33 33 35 35 35 58 Depository institutions in the United States 2,951 2,989 2,796 2,840 2,908 2,801 2,679 2,662 2,603 59 Foreign governments, official institutions and banks . 1,627 1,618 1,611 1,633 1,750 1,964 1,912 1,882 1,873 60 Liabilities for borrowed money 59,860' 6600,,111133'' 57,012' 52,609' 59,062 59,683 61,123 58,338 59,040 61 Borrowings from Federal Reserve Banks 400 1,230 4,013 62 Treasury tax-and-loan notes 511 1,966 1,659 2,148 2,575 497 466 1,239 1,024 63 All other liabilities for borrowed money5 59,35(K 58,146' 54,953' 50,461' 55,258 59,186 56,644 57,100 58,017 64 Other liabilities and subordinated note and debentures. 43,835' 41,259' 43,125' 43,237' 41,309 39,822 39,925 39,210 37,711 65 Total liabilities 238,823' 227,164' 228,457' 225,177' 233,560 230,130 237,009 224,390 225,955 66 Residual (total assets minus total liabilities)6 22,197 22,253 22,142 22,115' 22,397 22,452 22,350 22,376 22,312 1. Excludes trading account securities. 6. Not a measure of equity capital for use in capital adequacy analysis or for 2. Not available due to confidentiality. other analytic uses. 3. Includes securities purchased under agreements to resell. 4. Includes trading account securities. NOTE. These data also appear in the Board's H.4.2 (504) release. For address, 5. Includes federal funds purchased and securities sold under agreements to see inside front cover, repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • September 1984 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1984 AAccccoouunntt July 4R July IK July 18' July 25' Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 BANKS WITH ASSETS OF $1.4 BILLION OR MORE 1 Total loans and leases (gross) and investments adjusted1 741,825 737,988 735,645 738,223 741,604 739,918 746,422 742,214 741,816 2 Total loans and leases (gross) adjusted1 619,560 614,466 614,436 616,292 618,261 615,316 620,426 615,666 615,754 3 Time deposits in amounts of $100,000 or more 155,803 156,199 156,193 157,284 156,664 157,433 158,146 157,851 158,036 4 Loans sold outright to affiliates—total2 2,753 2,794 2,918 2,895 2,877 2,905 2,912 2,945 3,015 5 Commercial and industrial 1,957 1,986 2,103 2,083 2,057 2,086 2,091 2,102 2,150 6 Other 796 809 816 811 821 819 821 842 864 7 Nontransaction savings deposits (including MMDAs)... 155,264 154,489 154,056 153,110 152,932 152,438 152,122 151,434 151,158 BANKS IN NEW YORK CITY 8 Total loans and leases (gross) and investments adjusted1'3 .. 160,218 157,207 157,028 158,424 158,286 156,317 158,505 156,132 155,752 9 Total loans and leases (gross) adjusted1 141,747 138,683 138,434 139,856 139,800 137,918 139,725 137,112 136,785 10 Time deposits in amounts of $100,000 or more 34,845 34,625 34,675 35,288 35,282 35,668 36,043 35,146 35,094 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 $750 MILLION OR MORE ON JUNE 30, 1980 Assets and Liabilities Millions of dollars, Wednesday figures 1984 AAccccoouunntt July 4 July 11 July 18' July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 1 Cash and due from depository institutions. 7,229 6,720 6,631 6,840 7,024 6,415 6,525 6,165 6,327 2 Total loans and securities 47,370' 45,879' 46,625 44,714 44,305 44,844 46,698 46,541 48,320 3 U.S. Treasury and govt, agency securities 4,296 4,295 4,385 4,334 4,194 4,226 4,307 4,300 4,292 4 Other securities 822 839 964 984 1,003 1,002 1,016 1,050 1,091 5 Federal funds sold1 4,981 3,555 4,665 2,792 2,775 3,173 4,109 3,985 5,680 6 To commercial banks in the United States 4,786 3,427 4,480 2,736 2,695 3,115 3,902 3,840 5,457 7 To others 195 128 185 56 80 58 207 145 223 8 Other loans, gross 37,271' 37,19c 36,610 36,603 36,333 36,443 37,265 37,206 37,258 9 Commercial and industrial 20,511' 20,719' 20,653 20,383 20,163 20,046 20,226 20,350 20,702 10 Bankers acceptances and commercial paper 3,452' 3,543' 3,467 3,333 3,313 3,255 3,175 3,271 3,417 11 All other 17,058' 17,176' 17,186 17,050 16,850 16,791 17,051 17,079 17,285 12 U.S. addressees 15,169' 15,35C 15,276 15,187 15,097 15,019 15,294 15,317 15,404 13 Non-U.S. addressees 1,889 1,826 1,910 1,862 1,753 1,772 1,757 1,762 1,881 14 To financial institutions 13,367 13,060 12,772 12,919 12,689 13,078 13,537 13,670 13,265 15 Commercial banks in the United States . 11,178 10,914 10,627 10,790 10,289 11,010 11,215 11,361 11,066 16 Banks in foreign countries 1,431 1,542 1,501 1,505 1,622 1,528 1,607 1,603 1,494 17 Nonbank financial institutions 758 604 643 624 778 541 714 707 705 18 To foreign govts, and official institutions.. 794 789 792 827 794 785 755 752 747 19 For purchasing and carrying securities .. 643 710 479 631 840 712 874 589 655 20 All other 1,956 1,912 1,915 1,843 1,848 1,821 1,872 1,845 1,889 21 Other assets (claims on nonrelated parties).. 15,744' 15,958' 16,304 16.17C 15,956 16,018 16,346 16,892 17,133 22 Net due from related institutions 11,316 11,796 11,578 11,954' 11,179 11,249 10,863 10,518 10,298 23 Total assets 81,659 80,354 81,138 79,678' 78,464 78,525 80,432 80,116 82,079 24 Deposits or credit balances due to other than directly related institutions.... 22,474 22,175 22,207 22,300 22,259 21,542 21,694 21,108 21,182 25 Credit balances 207 115 170 203 197 118 148 113 132 26 Demand deposits 1,73c 1,699' 1,740 1,759 1,7% 1,731 2,009 1,576 1,718 27 Individuals, partnerships, and corporations 926 842' 810 792 854 829 872 810 812 28 Other 804' 857 930 966 942 902 1,136 766 906 29 Time and savings deposits 20,538' 20,36C 20,297 20,338 20,266 19,693 19,537 19,419 19,332 30 Individuals, partnerships, and corporations 17,052 16,914' 16,957 16,966 16,760 16,336 16,121 16,012 15,895 31 Other 3,486' 3,447 3,340 3,372 3,506 3,357 3,416 3,406 3,437 32 Borrowings from other than directly related institutions 33,645' 34,081' 34,617 34,352 33,403 33,640 34,329 33,666 34,957 33 Federal funds purchased2 9,310 9,734 10,387 9,985 9,562 9,551 10,099 9,342 1100,,337711 34 From commercial banks in the United States 6,629 7,101 7,398 6,951 6,814 6,695 7,394 6,344 7,334 35 From others 2,681 2,634 2,990 3,034 2,748 2,856 2,706 2,998 3,036 36 Other liabilities for borrowed money 24,335' 24,347' 24,230 24,367 23, 840 2244,,008888 2244,,223300 2244,,332244 2244,,558866 37 To commercial banks in the United States 20,445 20,480 20,287 20,228 19,596 19,742 19,863 20,063 20,282 38 To others 3,890 3,866 3,943 4,139 4,244 4,346 4,366 4,261 4,304 39 Other liabilities to nonrelated parties 16,418' 16,611' 16,767 16,765' 16,820 16,735 17,051 17,522 18,024 40 Net due to related institutions 9,121 7,487 7,547 6,260 5,982 6,610 7,358 7,820 7,916 41 Total liabilities 81,659 80,354 81,138 79,678' 78,464 78,525 80,432 80,116 82,079 MEMO 42 Total loans (gross) and securities adjusted3 31,406' 31,538' 31,518 31,188 31,321 30,719 31,581 31,340 31,797 43 Total loans (gross) adjusted3 26,288' 26,404' 26,168 25,870 26,124 25,491 26,257 25,990 26,415 1. Includes securities purchased under agreements to resell. NOTE. Data from tables 1.29 and 1.30 also appear in the Board's H.4.2 (504) 2. Includes securities sold under agreements to repurchase. release. For address, see inside front cover. 3. Exclusive of loans to and federal funds sold to commercial banks in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

IPC Demand Deposits A21 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1982 1983 1984 11997788 1199779922 11998800 11998811 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec. Mar. 1 All holders—Individuals, partnerships, and corporations 290.0 302.3 315.5 288.9 291.8 272.0 281.9 280.3 293.5 279.3 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 146.8 157.7 162.8 154.8 150.5 139.9 146.9 150.2 161.1 150.3 4 Consumer 98.2 99.2 102.4 86.6 85.9 79.4 80.3 78.0 78.5 78.1 5 Foreign 2.8 3.1 3.3 2.9 3.0 3.1 3.C 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.4 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 26.2 23.6 24.2 23.5 9 Nonfinancial business 67.2 74.1 78.3 75.2 74.3 68.9 72.S 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 4. In January 1984 the weekly reporting panel was revised; it now includes 168 other, 15.1. banks. Beginning with March 1984, estimates are constructed on the basis of 92 sample banks and are not comparable with earlier data. Estimates in billions of dollars for December 1983 based on the newly weekly reporting panel are: financial business, 24.4; nonfinancial business, 80.9; consumer, 30.1; foreign, 3.1; other, 9.5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • September 1984 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 19843 1979' 1980 1981 1982 1983 IInnssttrruummeenntt Dec. Dec. Dec. Dec.2 Dec. Feb. Mar. Apr. May June July Commercial paper (seasonally adjusted unless noted otherwise) 1 AU issuers 112,803 124,374 165,829 166,670 185,852 191,004 200,517 209,565 213,582 217,188'' 220,716 Financial companies4 Dealer-placed paper5 2 Total 17,359 19,599 30,333 34,634 41,688 44,749 46,573 4499,,886644 51,926 5522,,335566 5522,,558855 3 Bank-related (not seasonally adjusted) 2,784 3,561 6,045 2,516 2,441 1,765 1,767 1,865 1,6% ll,,994444rr 11,,779999 Directly placed paper6 4 Total 64,757 67,854 81,660 84,130 96,548 102,606 107,421 110099,,337766 111100,,779911 110099,,441133 110099,,229922 5 Bank-related (not seasonally adjusted) 17,598 22,382 26,914 32,034 35,566 36,958 39,617 41,881 46,338 43,960 45,090 6 Nonfinancial companies7 30,687 36,921 53,836 47,906 47,616 43,649 46,523 50,325 50,865 55,419^ 58,839 Bankers dollar acceptances (not seasonally adjusted) 7 Total 45,321 54,744 69,226 79,543 78,309 74,367 73,221 78,457 79,530 82,067 80,957 Holder 8 Accepting banks 9,865 10,564 10,857 10,910 9,355 9,237 8,734 11,160 9,927 10,877 10,708 9 Own bills 8,327 8,963 9,743 9,471 8,125 7,897 7,040 9,029 8,422 9,354 8,854 10 Bills bought 1,538 1,601 1,115 1,439 1,230 1,340 1,694 2,131 1,504 11,,552233 11,,885533 Federal Reserve Banks 11 Own account 704 776 195 1,480 418 0 0 305' 0 0 0 12 Foreign correspondents 1,382 1,791 1,442 949 729 777 896 834 679 697 611 13 Others 33,370 41,614 56,731 66,204 68,225 64,353 63,592 66,468 68,925 70,493 69,639 Basis 14 Imports into United States 10,270 11,776 14,765 17,683 15,649 15,495 15,107 16,579 16,687 17,301 17,947 15 Exports from United States 9,640 12,712 15,400 16,328 16,880 15,818 15,572 16,283 15,938 16,421 15,485 16 All other 25,411 30,257 39,060 45,531 45,781 43,055 42,542 45,545 46,906 48,345 47,525 1. A change in reporting instructions results in offsetting shifts in the dealer- 4. Institutions engaged primarily in activities such as, but not limited to, placed and directly placed financial company paper in October 1979. commercial, savings, and mortgage banking; sales, personal, and mortgage 2. Effective Dec. 1, 1982, there was a break in the commercial paper series. The financing; factoring, finance leasing, and other business lending; insurance key changes in the content of the data involved additions to the reporting panel, underwriting; and other investment activities. the exclusion of broker or dealer placed borrowings under any master note 5. Includes all financial company paper sold by dealers in the open market. agreements from the reported data, and the reclassification of a large portion of 6. As reported by financial companies that place their paper directly with bank-related paper from dealer-placed to directly placed. investors. 3. Correction of a previous misclassification of paper by a reporter has created 7. Includes public utilities and firms engaged primarily in such activities as a break in the series beginning January 1984. The correction shifts some paper communications, construction, manufacturing, mining, wholesale and retail trade, from nonfinancial companies to dealer-placed financial paper. transportation, and services. 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Rate Effective Date Rate Month Average Month rate 16.00 1982--Oct. 7 13.00 1982—Jan. 15.75 1983—May. 15.75 14 12.00 Feb. 16.56 June. Nov 7? 11.50 Mar. 16.50 July Apr. 16.50 Aug. 16.50 May 16.50 Sept. 17.00 1983--Jan. 11 11.00 June 16.50 Oct. 16.50 Feb. ?8 10.50 July 16.26 Nov. 16.00 Aug. 8 11.00 Aug. 14.39 Dec. 15.50 Sept 13.50 15.00 1984--Mar. 19 11.50 Oct. 12.52 1984—Jan. 14.50 Apr. 5 12.00 Nov. 11.85 Feb.. 14.00 May 8 12.50 Dec. 11.50 Mar. 13.50 June 25 13.00 Apr. 1983--Jan.. 11.16 May Feb. 10.98 June. Mar. 10.50 July Apr. 10.50 Aug. NOTE. These data also appear in the Board's H.15 (519) release. For address, see inside front cover. 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 sizes 1-24 25-49 100-499 500-999 an 1 d , 0 o 0 v 0 e r SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 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 .8 4 With fixed rates 1.0 3.8 4.0 3.0 4.1 2.1 .7 5 With floating rates 2.1 6.0 5.4 7.0 6.3 4.6 1.1 6 Weighted-average interest rate (percent per annum) . 12.45 14.93 14.46 14.41 13.86 13.37 12.12 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 34.7 46.2 57.8 67.4 68.8 35.4 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 .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 2 2 7 8 We W ig it h h t e f d ix -a e v d e r ra a g te e s maturity (months) 8 7 . .9 2 1 1 0 2 . . 4 7 9 9 . . 3 3 7 6 . . 7 1 4 5 . . 2 9 1 9 1 . . 7 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 17.1 31.7 40.8 50.7 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 All sizes 1-9 10-24 25-49 50-99 100-249 250 and over LOANS TO FARMERS 42 Amount of loans (thousands of dollars) 1,502,201 199,153 176,270 195,641 173,959 339,127 418,052 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 47 Feeder livestock 14.51 14.79 14.07 14.34 14.63 14.84 13.74 48 Other livestock 13.86 13.97 14.59 14.63 (2) (2) 13.33 49 Other current operating expenses 14.29 14.56 14.41 14.54 14.21 14.44 13.89 50 Farm machinery and equipment 15.04 15.88 14.55 14.68 (2) (2) (2) 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 • September 1984 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum; weekly and monthly figuresa re averages of business day data unless otherwise noted. 1984 1984, week ending IInnssttrruummeenntt 11998811 11998822 11998833 May June July Aug. Aug. 3 Aug. 10 Aug. 17 Aug. 24 Aug. 31 MONEY MARKET RATES 1 Federal funds1'2 16.38 12.26 9.09 10.32 11.06 11.23 11.64 11.53 11.59 11.63 11.77 11.50 2 Discount window borrowing1-2'3 13.42 11.02 8.50 9.00 9.00 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 10.38 10.82 11.06 11.19 11.02 11.11 11.18 11.28 11.28 4 3-month 15.32 11.89 8.88 10.65 10.98 11.19 11.18 11.12 11.14 11.16 11.22 11.23 5 6-month 14.76 11.89 8.89 10.87 11.23 11.34 11.16 11.19 11.16 11.13 11.16 11.17 Finance paper, directly placed4'5 6 1-month 15.30 11.64 8.80 10.26 10.76 10.99 11.16 10.83 11.13 11.18 11.23 11.26 7 3-month 14.08 11.23 8.70 10.16 10.38 10.54 10.61 10.58 10.55 10.65 10.58 10.63 8 6-month 13.73 11.20 8.69 10.03 10.25 10.42 10.52 10.45 10.45 10.55 10.54 10.57 Bankers acceptances5'6 9 3-month 15.32 11.89 8.90 10.84 11.04 11.30 11.23 11.14 11.21 11.22 11.24 11.29 10 6-month 14.66 11.83 8.91 11.06 11.30 11.44 11.13 11.17 11.12 11.10 11.11 11.17 Certificates of deposit, secondary market7 11 1-month 15.91 12.04 8.96 10.62 11.02 11.28 11.32 11.21 11.29 11.32 11.37 11.37 12 3-month 15.91 12.27 9.07 11.11 11.34 11.56 11.47 11.39 11.43 11.46 11.50 11.52 13 6-month 15.77 12.57 9.27 11.64 11.96 12.08 11.71 11.77 11.70 11.68 11.69 11.75 14 Eurodollar deposits, 3-month8 16.79 13.12 9.56 11.53 11.68 12.02 11.81 11.73 10.47 11.80 11.83 11.86 U.S. Treasury bills' Secondary market9 15 3-month 14.03 10.61 8.61 9.83 9.87 10.12 10.47 10.42 10.48 10.31 10.44 10.65 16 6-month 13.80 11.07 8.73 10.31 10.51 10.53 10.61 10.63 10.59 10.52 10.57 10.75 17 1-year 13.14 11.07 8.80 10.57 10.93 10.89 10.71 10.73 10.69 10.64 10.68 10.84 Auction average10 18 3-month 14.029 10.686 8.63 9.90 9.94 10.13 10.49 10.40 10.55 10.49 10.40 10.60 19 6-month 13.776 11.084 8.75 10.31 10.55 10.58 10.65 10.64 10.68 10.63 10.59 10.70 2200 1133..115599 1111..009999 88..8866 1100..6644 1100..9922 1100..9999 1100..7799 1100..7799 CAPITAL MARKET RATES U.S. Treasury notes and bonds" Constant maturities12 21 1-year 14.78 12.27 9.57 11.66 12.08 12.03 11.82 11.84 11.80 11.73 11.80 11.97 22 2-year 14.56 12.80 10.21 12.47 12.91 12.88 12.43 12.50 12.38 12.40 12.43 12.55 2-Vi-year13 12.75 12.40 12 45 24 3-year 14.44 12.92 10.45 12.75 13.18 13.08 12.50 12.63 12.44 12.45 12.46 12.60 25 5-year 14.24 13.01 10.80 13.17 13.48 13.28 12.69 12.77 12.63 12.67 12.66 12.79 26 7-year 14.06 13.06 11.02 13.34 13.56 13.35 12.75 12.83 12.69 12.74 12.70 12.86 27 10-year 13.91 13.00 11.10 13.41 13.56 13.36 12.72 12.82 12.67 12.71 12.66 12.82 28 20-year 13.72 12.92 11.34 13.43 13.54 13.36 12.71 12.87 12.72 12.75 12.60 12.75 29 30-year 13.44 12.76 11.18 13.43 13.44 13.21 12.54 12.79 12.58 12.51 12.42 12.56 Composite14 30 Over 10 years (long-term) 12.87 12.23 10.84 12.89 13.00 12.82 12.23 12.36 12.23 12.25 12.15 12.29 State and local notes and bonds Moody's series15 31 Aaa 10.43 10.88 8.80 9.98 10.05 10.10 9.58 9.75 9.55 9.50 9.50 9.60 32 Baa 11.76 12.48 10.17 10.55 10.68 10.61 10.30 10.45 10.30 10.25 10.15 10.35 33 Bond Buyer series16 11.33 11.66 9.51 10.49 10.67 10.42 9.99 9.92 9.81 10.02 10.02 10.17 Corporate bonds Seasoned issues17 34 All industries 15.06 14.94 12.78 14.13 14.40 14.32 13.78 13.96 13.76 13.77 13.73 13.77 35 Aaa 14.17 13.79 12.04 13.28 13.55 13.44 12.87 13.05 12.84 12.86 12.85 12.88 36 Aa 14.75 14.41 12.42 14.10 14.33 14.12 13.47 13.66 13.47 13.44 13.41 13.47 37 A 15.29 15.43 13.10 14.37 14.66 14.57 14.13 14.25 14.07 14.14 14.09 14.13 38 Baa 16.04 16.11 13.55 14.74 15.05 15.15 14.63 14.89 14.65 14.63 14.55 14.58 39 A-rated, recently-offered utility bonds18 16.63 15.49 12.73 14.79 15.00 14.93 14.12 14.10 14.08 14.16 14.10 14.15 MEMO: Dividend/price ratio19 40 Preferred stocks 12.36 12.53 11.02 11.72 12.04 12.13 11.77 12.08 11.73 11.65 11.66 11.71 41 Common stocks 5.20 5.81 4.40 4.72 4.86 4.93 4.62 4.84 4.64 4.61 4.50 4.50 1. Weekly and monthly figures are averages of all calendar days, where the 11. Yields are based on closing bid prices quoted by at least five dealers. rate for a weekend or holiday is taken to be the rate prevailing on the preceding 12. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields business day. The daily rate is the average of the rates on a given day weighted by are read from a yield curve at fixed maturities. Based on only recently issued, the volume of transactions at these rates. actively traded securities. 2. Weekly figures are averages for statement week ending Wednesday. 13. Each biweekly figure is the average of five business days ending on the 3. Rate for the Federal Reserve Bank of New York. Monday following the date indicated. Until Mar. 31, 1983, the biweekly rate 4. Unweighted average of offering rates quoted by at least five dealers (in the determined the maximum interest rate payable in the following iwo-week period case of commercial paper), or finance companies (in the case of finance paper). on 2-1/i-year small saver certificates. (See table 1.16.) Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. Averages (to maturity or call) for all outstanding bonds neither due nor and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150— callable in less than 10 years, including several very low yielding "flower" bonds. 179 days for finance paper. 15. General obligations based on Thursday figures; Moody's Investors Service. 5. Yields are quoted on a bank-discount basis, rather than an investment yield 16. General obligations only, with 20 years to maturity, issued by 20 state and basis (which would give a higher figure). local governmental units of mixed quality. Based on figures for Thursday. 6. Dealer closing offered rates for top-rated banks. Most representative rate 17. Daily figures from Moody's Investors Service. Based on yields to maturity (which may be, but need not be, the average of the rates quoted by the dealers). on selected long-term bonds. 7. Unweighted average of offered rates quoted by at least five dealers early in 18. Compilation of the Federal Reserve. This series is an estimate of the yield the day. on recently-offered, A-rated utility bonds with a 30-year maturity and 5 years of 8. Calendar week average. For indication purposes only. call protection. Weekly data are based on Friday quotations. 9. Unweighted average of closing bid rates quoted by at least five dealers. 19. Standard and Poor's corporate series. Preferred stock ratio based on a 10. Rates are recorded in the week in which bills are issued. Beginning with the sample often issues: four public utilities, four industrials, one financial, and one Treasury bill auction held on Apr. 18, 1983, bidders were required to state the transportation. Common stock ratios on the 500 stocks in the price index. percentage yield (on a bank discount basis) that they would accept to two decimal places. Thus, average issuing rates in bill auctions will be reported using two NOTE. These data also appear in the Board's H. 15 (519) and G. 13 (415) releases. rather than three decimal places. For address, see inside front cover. 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 Dec. Jan. Feb. Mar. Apr. May June July Aug. 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 94.92 96.16 90.60 90.66 90.67 90.07 88.28 87.08 94.49 2 Industrial 85.44 78.18 107.45 110.60 112.16 105.44 105.92 106.56 105.94 104.04 102.29 111.20 3 Transportation 72.61 60.41 89.36 98.79 97.98 86.33 86.10 83.61 81.62 79.29 76.72 86.86 4 Utility 38.90 39.75 47.00 47.00 47.43 45.67 44.83 43.86 44.22 43.65 44.17 46.69 5 Finance 73.52 71.99 95.34 94.25 95.79 89.95 89.50 88.22 85.06 80.75 79.03 87.92 6 Standard & Poor's Corporation (1941-43 = 10)' ... 128.05 119.71 160.41 164.36 166.39 157.70 157.44 157.60 156.55 153.12 151.08 164.42 7 American Stock Exchange2 (Aug. 31, 1973 = 100) 171.79 141.31 216.48 221.31 224.83 207.95 210.09 207.66 206.39 201.24 192.82 207.90 Volume of trading (thousands of shares) 8 New York Stock Exchange 46,967 64,617 85,418 88,041 105,518 96,641 84,328 85,874 88,170 85,920 79,156 110099,,889922 9 American Stock Exchange 5,346 5,283 8,215 6,939 7,167 6,431 5,382 5,863 5,935 5,071 5,141 7,477 Customer financing (end-of-period balances, in millions of dollars) 10 Margin credit at broker-dealers3 14,411 13,325 23,000 23,000 23,132 22,557 22,668 22,830 22,360 23,450 11 Margin stock 14,150 12,980 22,720 22,720 22,870 22,330 22,460 t • t 12 Convertible bonds 259 344 279 279 261 226 208 n.a. n.a. n.a. 13 Subscription issues 2 1 1 1 1 1 Free credit balances at brokers4 14 Margin-account 3,515 5,735 6,620 6,620 6,510 6,420 6,520 6,450 6,685 6,430 15 Cash-account 7,150 8,390 8,430 8,430 8,230 8,420 8,265 7,910 8,115 8,304 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 41.0 43.0 48.0 46.0 47.0 53.0 5500..00 5522..00 18 40-49 24.0 24.0 22.0 22.0 21.0 20.0 20.0 20.0 18.0 19.0 17.0 19 50-59 17.0 24.0 16.0 16.0 15.0 13.0 14.0 13.0 12.0 12.0 12.0 n.a. 20 60-69 10.0 14.0 9.0 9.0 9.0 8.0 9.0 8.0 7.0 8.0 8.0 1 21 70-79 6.0 9.0 6.0 6.0 6.0 6.0 6.0 6.0 5.0 6.0 5.0 1 22 80 or more 6.0 8.0 6.0 6.0 6.0 5.0 5.0 6.0 5.0 5.0 6.0 y Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 25,870 35,598 58,329 58,329 62,670 63,410 65,860 66,340 70,110 69,410 70,588 f Distribution by equity status (percent) 1 24 Net credit status 58.0 62.0 63.0 63.0 61.0 59.0 61.0 60.0 60.0 56.0 57.0 n.a. Debt status, equity of 1 25 60 percent or more 31.0 29.0 28.0 28.0 29.0 29.0 28.0 29.0 27.0 30.0 30.0 1 26 Less than 60 percent 11.0 9.0 9.0 9.0 10.0 12.0 11.0 11.0 13.0 14.0 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 • September 1984 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1983 1984 AAccccoouunntt 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July' Savings and loan associations 1 Assets 664,167 707,646 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,482 823,737 838,825 849,761 2 Mortgages 518,547 483,614 482,305 485,366 489,720 493,432 494,682 497,987 502,143 509,283 518,214 526,732 534,704 3 Cash and investment securities1 63,123 85,438 100,243 101,553 101,553 103,395 101,883 103,917 108,565 105,950 109,102 108,809 107,717 4 Other 82,497 138,594 165,943 170,034 172,259 174,878 176,158 178,203 185,387 191,249 196,421 203,284 207,340 5 Liabilities and net worth 664,167 707,646 748,491 756,953 763,365 771,705 772,723 780,107 796,095 806,482 823,737 838,825 849,761 6 Savings capital 525,061 567,961 618,002 622,577 625,013 634,076 639,694 644,588 656,252 660,262 670,259 681,532 687,930 7 Borrowed money 88,782 97,850 85,976 87,367 89,235 91,443 86,322 86,526 93,321 97,468 102,281 107,554 109,401 8 FHLBB 62,794 63,861 52,179 52,678 51,735 52,626 50,880 50,465 50,663 51,951 53,485 56,558 57,245 9 Other 25,988 33,989 33,797 34,689 37,500 38,817 35,442 36,061 42,658 45,517 48,7% 50,9% 52,156 10 Loans in process2 6,385 9,934 18,812 19,209 19,728 21,117 21,498 21,939 22,929 23,898 24,717 25,680 26,140 11 Other 15,544 15,602 15,496 17,458 19,179 15,275 15,777 17,520 14,938 16,904 19,207 16,957 19,509 12 Net worth3 28,395 26,233 29,017 29,551 29,938 30,911 30,930 31,473 31,584 31,848 31,990 32,782 32,921 13 MEMO: Mortgage loan commitments outstanding4 15,225 18,054 32,483 32,798 34,780 32,9% 33,504 36,150 39,813 41,672 45,207 44,811 44,116 Mutual savings banks5 14 Assets 175,728 174,197 186,041 187,385 189,149 193,535 194,217 195,168 197,178 198,000 200,087 198,744 Loans 15 Mortgage 99,997 94,091 94,831 94,863 95,600 97,356 97,703 97,895 98,472 99,017 99,881 99,356 16 Other 14,753 16,957 17,830 19,589 19,675 19,129 20,463 21,694 21,971 22,531 22,907 22,972 Securities 17 U.S. government6 9,810 9,743 14,794 14,634 15,092 15,360 15,167 15,667 15,772 15,913 16,404 15,440 18 State and local government 2,288 2,470 2,244 2,195 2,195 2,177 2,180 2,054 2,067 2,033 2,024 2,037 19 Corporate and other7 37,791 36,161 41,889 42,092 42,629 43,580 43,542 43,439 43,547 43,122 43,200 42,675 20 Cash 5,442 6,919 5,560 4,993 4,983 6,263 4,788 4,580 5,040 5,008 5,031 5,449 21 Other assets 5,649 7,855 8,893 9,019 8,975 9,670 10,374 9,839 10,309 10,376 10,640 10,815 22 Liabilities 175,728 174,197 186,041 187,385 189,149 193,535 194,217 195,168 197,178 198,000 200,087 198,744 n a. 155,110 155,196 165,887 168,064 169,356 172,665 173,636 174,370 176,044 175,875 176,253 174,855 24 Regular* 153,003 152,777 162,998 165,575 167,006 170,135 171,099 171,957 173,385 173,010 173,310 171,742 25 Ordinary savings 49,425 46,862 39,768 38,485 38,448 38,554 37,992 37,642 37,866 37,329 37,147 36,300 103,578 96,369 85,603 91,795 93,073 95,129 %,519 96,005 97,339 %,920 97,236 97,131 27 Other 2,108 2,419 2,889 2,489 2,350 2,530 2,537 2,413 2,659 2,865 2,943 3,113 28 Other liabilities 10,632 8,336 9,475 8,779 9,185 10,154 9,917 10,019 10,390 11,211 12,861 13,003 29 General reserve accounts 9,986 9,235 9,879 10,015 10,210 10,368 10,350 10,492 10,373 10,466 10,554 10,3% 30 MEMO: Mortgage loan commitments outstanding9 1,293 1,285 2,023 2,210 22,,441188 22,,338877 n.a. n.a. n.a. n.a. n.a. n.a. Life insurance companies' 31 Assets 525,803 588,163 639,035 643,338 649,081 654,948 658,504 660,901 665,836 671,259 673,518 Securities 32 Government 25,209 36,499 46,605 48,478 48,341 50,752 51,328 51,762 52,504 52,828 53,422 33 United States10 8,167 16,529 24,513 26,054 26,293 28,636 29,179 30,130 31,056 31,358 31,706 34 State and local 7,151 8,664 10,022 10,010 9,925 9,986 9,995 9,426 9,259 9,192 9,239 35 Foreign" 9,891 11,306 12,070 12,414 12,123 12,130 12,154 12,206 12,189 12,278 12,477 255,769 287,126 318,668 319,644 323,714 322,854 328,075 328,235 331,631 334,634 334,151 n.a. n.a. 37 Bonds 208,099 231,406 253,602 255,409 258,757 257,986 263,207 265,798 268,446 271,2% 273,212 38 Stocks 47,670 55,720 65,066 64,235 64,957 64,868 64,868 62,437 63,185 63,338 60,939 39 Mortgages 137,747 141,989 147,025 147,839 148,487 150,999 151,085 151,020 151,445 152,373 152,968 40 Real estate 18,278 20,264 21,536 21,731 21,864 22,234 22,500 22,591 23,034 23,237 23,517 41 Policy loans 48,706 52,961 53,860 53,917 53,979 54,063 54,089 54,170 54,254 54,365 54,399 42 Other assets 40,094 48,571 51,341 51,729 52,696 54,046 51,939 53,123 52,968 53,822 55,061 Credit unions12 43 Total assets/liabilities and capital 60,611 69,585 80,189 80,419 81,094 81,961 82,287 83,779 86,498 87,204 89,378 90,021 91,431 39,181 45,493 53,086 53,297 53,801 54,482 54,770 55,753 57,569 58,127 59,636 59,748 61,163 45 State 21,430 24,092 27,103 27,122 27,293 27,479 27,517 28,026 28,929 29,077 29,742 30,273 30,268 42,333 43,232 47,829 48,454 49,240 50,083 50,477 51,386 52,353 53,355 54,813 56,272 58,027 47 Federal 27,096 27,948 31,212 31,691 32,304 32,930 33,270 33,878 34,510 35,286 36,274 36,872 38,490 48 State 15,237 15,284 16,617 16,763 16,936 17,153 17,207 17,508 17,843 18,069 18,539 19,400 19,537 54,152 62,990 73,280 73,661 74,051 74,739 75,373 76,423 79,150 80,032 81,571 82,319 83,757 35,250 41,352 48,709 49,044 49,400 49,889 50,438 51,218 52,905 53,587 54,632 54,780 56,278 51 State (shares and deposits) 18,902 21,638 24,571 24,617 24,651 24,850 24,935 25,205 26,245 26,445 26,939 27,539 27,476 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.37 Continued 1983 1984 AAccccoouunntt 11998811 11998822 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July? FSLIC-insured federal savings banks 52 Assets 6,859 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,374 78,952 81,310 82,862 53 Mortgages 3,353 34,814 35,637 37,166 38,698 41,754 43,371 44,708 45,900 46,791 48,084 49,282 54 Cash and investment securities' 9,245 9,587 9,653 10,436 11,243 11,662 12,552 12,762 12,814 13,071 13,057 55 Other 13,437 14,198 14,898 15,835 16,838 17,110 18,295 18,712 19,347 20,155 20,523 56 Liabilities and net worth 6,859 57,496 59,422 61,717 64,969 69,835 72,143 75,555 77,374 78,952 81,310 82,862 57 Savings and capital 5,877 47,058 48,544 50,384 53,227 57,195 59,107 61,433 62,495 63,026 64,364 65,299 58 Borrowed money 6,598 6,775 6,981 7,477 8,048 8,088 9,213 9,707 10,475 11,489 11,947 59 FHLBB 4,192 4,323 4,381 4,640 4,751 4,884 5,232 5,491 5,900 6,538 6,784 60 Other 2,406 2,452 2,600 2,837 3,297 3,204 3,981 4,216 4,575 4,951 5,163 61 Other 1,089 1,293 1,428 1,157 1,347 1,545 1,360 1,548 1,747 1,646 1,771 62 Net worth3 2,751 2,810 2,924 3,108 3,245 3,403 3,549 3,624 3,704 3,811 3,845 MEMO 63 Loans in process2 1,120 1,181 1,222 1,264 1,387 1,531 1,669 1,716 1,787 1,839 1,856 64 Mortgage loan committments outstanding4 2,130 2,064 2,230 2,151 2,974 2,704 3,253 3,714 3,763 3,583 3,889 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 May June July U.S. budget 1 Receipts' 599,272 617,766 600,562 322,478 286,338 306,331 37,459 69.282 52,017 2 Outlays' 657,204 728,375 795,917 348,678 390,846 396,477 71,391 71.283 68,433 3 Surplus, or deficit (-) -57,932 -110,609 -195,355 -26,200 -104,508 -90,146 -33,932 -2,001 16,416 4 Trust funds 6,817 5,456 23,056 -17,690 -6,576 22,680 3,849 10,425 441 5 Federal funds2-3 -64,749 -116,065 -218,410 -43,889 -97,934 -112,822 -37,781 -12,425 -16,857 Off-budget entities (surplus, or deficit (-)) 6 Federal Financing Bank outlays -20,769 -14,142 -10,404 -7,942 -4,923 -5,418 1,171 -1,504 -1,406 7 Other3 4 -236 -3,190 -1,953 227 -2,267 -528 -181 -296 -2,363 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 -35,284 -3,801 -18,128 Source of financing 9 Borrowing from the public 79,329 134,993 212,425 41,728 119,609 102,538 8,604 5,524 24,540 10 Cash and monetary assets (decrease, or increase (-))4 -1,878 -11,911 -9,889 -408 -9,057 -9,664 31,023 -6,388 -3,264 11 Other5 1,485 4,858 5,176 -7,405 1,146 3,222 -4,344 4,666 -3,148 MEMO 12 Treasury operating balance (level, end of period) 18,670 29,164 37,057 10,999 19,773 100,243 8,182 13,567 16,312 13 Federal Reserve Banks 3,520 10,975 16,557 4,099 5,033 19,442 4,855 4,397 3,972 14 Tax and loan accounts 15,150 18,189 20,500 6,900 14,740 72,037 3,327 9,170 12,340 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 Domestic Nonfinancial Statistics • September 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 May June July RECEIPTS 1 All sources 599,272 617,766 600,563 322,478 286,338 306,331 37,459 69,282 52,017 2 Individual income taxes, net 285,917 297,744 288,938 150,565 145,676 144,550 4,333 32,200 22,398 3 Withheld 256,332 267,513 266,010 133,575 131,567 135,531 2233,,551199 23,347 23,013 4 Presidential Election Campaign Fund ... 41 39 36 34 5 30 88 3 3 5 Nonwithheld 76,844 84,691 83,586 66,174 20,040 63,014 1,269 11,196 789 6 Refunds 47,299 54,498 60,692 49,217 5,938 5544,,002244 20,463 22,,334466 11,,440077 Corporation income taxes 7 Gross receipts 73,733 65,991 61,780 37,836 25,661 33,522 2,295 11,929 3,376 8 Refunds 12,5% 16,784 24,758 8,028 1111,,446677 1133,,880099 22,,001155 614 11,,331133 9 Social insurance taxes and contributions, net 182,720 201,498 209,001 108,079 94,278 110,521 26,441 1199,,775599 21,361 10 Payroll employment taxes and contributions' 156,932 172,744 179,010 88,795 8855,,006633 9900,,991122 1177,,116688 1177,,881111 18.858 11 Self-employment taxes and contributions2 6,041 7,941 6,756 7,357 177 6,427 432 1,165 0 12 Unemployment insurance 15,763 16,600 18,799 9,809 6,857 11,146 8,457 373 2,093 13 Other net receipts3 3,984 4,212 4,436 2,119 2,181 2,1% 384 410 410 14 Excise taxes 40,839 36,311 35,300 17,525 16,556 16,904 3,322 3,229 33,,229988 15 Customs deposits 8,083 8,854 8,655 4,310 4,299 4,010 990 1,060 11,,008888 16 Estate and gift taxes 6,787 7,991 6,053 4,208 3,445 2,883 550 466 476 17 Miscellaneous receipts4 13,790 16,161 15,594 7,984 7,891 7,751 1,543 1,253 1,333 OUTLAYS 18 All types 657,204 728,424 795,917 348,683 390,847 3%,477 71,391 71,283 68,433 19 National defense 159,765 187,418 210,461 93,154 100,419 105,072 19,955 19,659 18,870 20 International affairs 11,130 9,982 8,927 5,183 4,406 4,705 999 857 1,117 21 General science, space, and technology ... 6,359 7,070 7,777 3,370 3,903 3,486 756 705 745 22 Energy 10,277 4,674 4,035 2,946 2,059 2,073 119 350 309 23 Natural resources and environment 13,525 12,934 12,676 5,636 6,940 5,892 951 975 1,232 24 Agriculture 5,572 14,875 22,173 7,087 13,260 10,154 687 191 503 25 Commerce and housing credit 3,946 3,865 4,721 1,408 2,244 2,164 2,013 296 559 26 Transportation 23,381 20,560 21,231 9,915 10,686 9,918 1,798 2,077 2,322 27 Community and regional development .... 9,394 7,165 7,302 3,055 4,186 3,124 563 638 682 28 Education, training, employment, social services 31,402 26,300 25,726 12,607 12,187 12,801 2,260 2,022 2,075 29 Health 26,858 27,435 28,655] 2,638 2,515 2,536 30 Social security and medicare 178,733 202,531 223,311> 150,001' 117722,,885522 118844,,220077 19,555 21,718 19,656 31 Income security 85,514 92,084 106,21lj 8,498 6,380 7,047 32 Veterans benefits and services 22,988 23,955 24,845 112,782 13,241 11,334 2,204 3,151 1,243 33 Administration of justice 4,6% 4,671 5,014 2,334 2,373 2,522 441 463 543 34 General government 4,614 4,726 4,991 2,400 2,322 2,434 558 471 290 35 General-purpose fiscal assistance 6,856 6,393 6,287 3,325 3,152 3,124 80 204 1,256 36 Net interest* 68,726 84,697 89,774 41,883 44,948 42,358 10,235 9,606 8,743 37 Undistributed offsetting receipts7 -16,509 -13,270 -21,424 -6,490 -8,333 -8,885 -2,918 -998 -1,296 1. Old-age, disability, and hospital insurance, and railroad retirement accounts. function. Before February 1984, these outlays were included in the income 2. Old-age, disability, and hospital insurance. security and health functions. 3. Federal employee retirement contributions and civil service retirement and 6. Net interest function includes interest received by trust funds. disability fund. 7. Consists of rents and royalties on the outer continental shelf and U.S. 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous government contributions for employee retirement. receipts. 5. In accordance with the Social Security Amendments Act of 1983, the SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Treasury now provides social security and medicare outlays as a separate Government" and the Budget of the U.S. Government, Fiscal Year 1985. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1982 1983 1984 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 1,084.7 1,147.0 1,201.9 1,249.3 1,324.3 1,381.9 1,415.3 1,468.3 1,517.2 2 Public debt securities 1,079.6 1,142.0 1,197.1 1,244.5 1,319.6 1,377.2 1,410.7 1,463.7 1,512.7 3 Held by public 867.9 925.6 987.7 1,043.3 1,090.3 1,138.2 1,174.4 1,223.9 1,255.1 4 Held by agencies 211.7 216.4 209.4 201.2 229.3 239.0 236.3 239.8 257.6 5 Agency securities 5.0 5.0 4.8 4.8 4.7 4.7 4.6 4.6 4.5 6 Held by public 3.9 3.7 3.7 3.7 3.6 3.6 3.5 3.5 3.4 7 Held by agencies 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 8 Debt subject to statutory limit 1,080.5 1,142.9 1,197.9 1,245.3 1,320.4 1,378.0 1,411.4 1,464.5 1,513.4 9 Public debt securities 1,079.0 1,141.4 1,196.5 1,243.9 1,319.0 1,376.6 1,410.1 1,463.1 1,512.1 10 Other debt1 1.5 1.5 1.4 1.4 1.4 1.3 1.3 1.3 1.3 11 MEMO: Statutory debt limit 1,143.1 1,143.1 1,290.2 1,290.2 1,389.0 1,389.0 1,490.0 1,490.0 1,520.0 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 Q3 Q4 Ql Q2 1 Total gross public debt 845.1 930.2 1,028.7 1,197.1 1,377.2 1,410.7 1,463.7 1,512.7 By type 7. Interest-bearing debt 844.0 928.9 1,027.3 1,195.5 1,375.8 1,400.9 1,452.1 1,501.1 3 Marketable 530.7 623.2 720.3 881.5 1,024.0 1,050.9 1,097.7 1,126.6 4 Bills 172.6 216.1 245.0 311.8 340.7 343.8 350.2 343.3 5 Notes 283.4 321.6 375.3 465.0 557.5 573.4 604.9 632.1 6 Bonds 74.7 85.4 100.0 104.6 125.7 133.7 142.6 151.2 7 Nonmarketable1 313.2 305.7 307.0 314.0 351.8 350.0 354.4 374.5 8 State and local government series 24.6 23.8 23.0 25.7 35.1 36.7 38.1 39.9 9 Foreign issues2 28.8 24.0 19.0 14.7 11.4 10.4 9.9 8.8 10 Government 23.6 17.6 14.9 13.0 11.4 10.4 9.9 8.8 11 Public 5.3 6.4 4.1 1.7 .0 .0 .0 .0 12 Savings bonds and notes 79.9 72.5 68.1 68.0 70.3 70.7 71.6 72.3 13 Government account series3 177.5 185.1 196.7 205.4 234.7 231.9 234.6 253.2 14 Non-interest-bearing debt 1.2 1.3 1.4 1.6 1.5 9.8 11.6 11.6 By holder* 15 U.S. government agencies and trust funds 187.1 192.5 203.3 209.4 239.0 236.3 239.8 257.6 16 Federal Reserve Banks 117.5 121.3 131.0 139.3 155.4 151.9 150.8 152.9 17 Private investors 540.5 616.4 694.5 848.4 982.7 1,022.6 1,073.0 1,093.7 18 Commercial banks 88.1 112.1 111.4 131.4 176.3 188.8 189.8 183.8 19 Money market funds 5.6 3.5 21.5 42.6 22.1 22.8 19.4 14.9 20 Insurance companies 21.4 24.0 29.0 39.1 47.3 48.9 n.a. n.a. 21 Other companies 17.0 19.3 17.9 24.5 35.9 39.7r 45.4' 47.9 22 State and local governments 69.9 84.4 85.6 113.4 n.a. n.a. n.a. n.a. Individuals 73 Savings bonds 79.9 72.5 68.1 68.3 70.6 71.5 72.2 72.9 74 Other securities 38.1 44.6 42.7 48.2 58.4 61.9 64.7' 69.3 25 Foreign and international5 119.0 129.7 136.6 149.5 160.2 168.9 166.3' 170.9 26 Other miscellaneous investors6 99.6 126.3 167.8 231.4 n.a. n.a. n.a. n.a. 1. Includes (not shown separately): Securities issued to the Rural Electrifica- 5. Consists of investments of foreign and international accounts. Excludes nontion Administration; depository bonds, retirement plan bonds, and individual interest-bearing notes issued to the International Monetary Fund. retirement bonds. 6. Includes savings and loan associations, nonprofit institutions, credit unions, 2. Nonmarketable dollar-denominated and foreign currency-denominated mutual savings banks, corporate pension trust funds, dealers and brokers, certain series held by foreigners. U.S. government deposit accounts, and U.S. government-sponsored agencies. 3. Held almost entirely by U.S. government agencies and trust funds. SOURCES. Data by type of security, U.S. Treasury Department, Monthly 4. Data for Federal Reserve Banks and U.S. government agencies and trust Statement of the Public Debt of the United States; data by holder. Treasury funds are actual holdings; data for other groups are Treasury estimates. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • September 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 Juner July' Aug. July 4 July 11 July 18 July 25 Aug. 1 Aug. 8 Immediate delivery1 1 U.S. government securities 24,728 32,271 42,135 51,017 47,313 44,458 45,863' 51,306' 43,755 44,554 48,839 47,271 By maturity 2 Bills 14,768 18,398 22,393 27,529 23,390 21,319 24,106 25,596' 23,013 21,915 21,439 22,130 3 Other within 1 year 621 810 708 1,206 1,195 940 1,535 1,208 1,289 922 1,182 1,075 4 1-5 years 4,360 6,272 8,758 10,597 9,827 9,448 9,532' 8,869 7,930 9,627 13,171 11,729 5 5-10 years 2,451 3,557 5,279 6,785 7,679 6,737 6,199 9,465 6,375 7,044 7,808 6,034 6 Over 10 years 2,528 3,234 4,997 4,899 5,222 6,014 4,492 6,168 5,148 5,046 5,239 6,303 By type of customer / U.S. government securities dealers 1,640 1,769 2,257 2,270 2,384 2,663 2,902 2,660 2,497 1,396 2,866 2,868 8 U.S. government securities brokers 11,750 15,659 21,045 26,510 23,511 21,487 21,324 24,649 21,900 22,858 24,460 22,323 9 All others2 11,337 15,344 18,832 22,237 21,419 20,308 21,639' 23,997' 19,358 20,300 21,513 22,080 10 Federal agency securities 3,306 4,142 5,576 7,090 7,956 7,002 6,889 7,737 9,614 7,261 7,479 8,809 11 Certificates of deposit 4,477 5,001 4,334 3,976 4,512 3,002 4,263' 4,993 4,336 4,546 3,915 3,560 12 Bankers acceptances 1,807 2,502 2,642 3,107 3,185 2,531 2,981 3,260 3,245 3,170 2,963 3,275 13 Commercial paper 6,128 7,595 8,036 10,034 11,580 10,528 12,251 11,038 12,056 1111,,111177 1111,,331122 1100,,665500 Futures transactions3 14 Treasury bills 3,523 5,031 6,655 8,173 7,126 5,498 6,033 6,699 8,218 7,554 6,149 5,798 15 Treasury coupons 1,330 1,490 2,501 4,960 4,235 4,380 3,771' 4,817' 4,046 4,035 4,405 5,128 16 Federal agency securities 234 259 265 381 221 282 417 263 195 225 265 207 Forward transactions4 17 U.S. government securities 365 835 1,492 1,703 1J42 1,434 1,382 1,151 1,016 1,296 1,270 1,622 18 Federal agency securities 1,370 982 1,646 2,810 2J11 3,140 2,997 3,367 3,178 1,747 2,135 5,063 1. Before 1981, data for immediate transactions include forward transactions. from the date of the transaction for government securities (Treasury bills, notes, 2. Includes, among others, all other dealers and brokers in commodities and and bonds) or after 30 days for mortgage-backed agency issues. securities, nondealer departments of commercial banks, foreign banking agencies, NOTE. Averages for transactions are based on number of trading days in the and the Federal Reserve System. period. 3. Futures contracts are standardized agreements arranged on an organized Transactions are market purchases and sales of U.S. government securities exchange in which parties commit to purchase or sell securities for delivery at a dealers reporting to the Federal Reserve Bank of New York. The figures exclude future date. allotments of, and exchanges for, new U.S. government securities, redemptions 4. Forward transactions are agreements arranged in the over-the-counter of called or matured securities, purchases or sales of securities under repurchase market in which securities are purchased (sold) for delivery after 5 business days agreement, reverse repurchase (resale), or similar contracts. 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1984 1984 week ending Wednesday IItteemm 11998811 11998822 11998833 June July' Aug. June 27 July 4 July 11 July 18 July 25 Positions Net immediate1 1 U.S. government securities 9,033 9,328 6,263 -6,387 -6,121 3,363 -7,714 -11,796 -7,932 -6,929 -4,594 2 Bills 6,485 4,837 4,282 -2,628 -2,362 4,546 -4,087 -5,310 -4,371 -2,912 -223 3 Other within 1 year -1,526 -199 -177 -596 -604 -89 -848 -1,038 -670 -547 -615 4 1-5 years 1,488 2,932 1,709 343 331 2,471 1,093 948 339 -426 -818 5 5-10 years 292 -341 -78 -1,341 -860 -1,167 -1,431 -2,029 -712 -616 -457 6 Over 10 years 2,294 2,001 528 -2,250 -2,715 -2,490 -2,535 -4,453 -2,607 -2,519 -2,574 7 Federal agency securities.. 2,277 3,712 7,172 15,996' 16,040 16,098 14,981 15,961 16,889 16,230 15,191 8 Certificates of deposit 3,435 5,531 5,839 6,990 7,407 6,708 7,289 7,569 7,780 7,492 7,025 9 Bankers acceptances 1,746 2,832 3,332 3,498 4,693 3,172 3,703 4,296 4,283 4,002 10 Commercial paper 2,658 3,317 3,159 3,969 3,161 4,158 3,817 3,562 3,132 3,350 2,907 Futures positions 11 Treasury bills -8,934 -2,508 -4,125 2,613 -1,383 -7,158 -95 828 -1,372 -1,430 -1,401 12 Treasury coupons -2,733 -2,361 -1,032 1,863' 3,368 2,826 2,354 3,501 3,217 2,975 3,601 13 Federal agency securities.. 522 -224 170 826 622 610 977 1,071 616 530 560 Forward positions 14 U.S. government securities -603 -788 -1,935 -836 -1,794 -673 -416 -565 -1,874 -1,696 -2,696 15 Federal agency securities.. -451 -1,190 -3,561 -10,763 -10,272 -9,682 -10,161 -11,555 -11,239 -10,286 -9,177 Financing2 Reverse repurchase agreements3 tt 16 Overnight and continuing 14,568 26,754 29,099 44,990 42,412 44,412 42,730 43,159 42,822 17 Term agreements 32,048 48,247 52,493 65,225 69,221 68,725 71,150 66,738 69,361 Repurchase agreements4 tt 18 Overnight and continuing 35,919 49,695 57,946 70,133 69,928 nn..aa.. 71,413 55,549 73,162 73,633 19 Term agreements 29,449 43,410 44,410 54,761' 55,217 55,059 68,881 51,592 52,588 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 1984 AAggeennccyy 11998800 11998811 11998822 Jan. Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies 188,665 221,946 237,085 239,872 241,628 244,691' 247,148 252,044 255,376 2 Federal agencies 28,606 31,806 33,055 33,919 33,785 32,800 34,273 34,231 34,473 3 Defense Department1 610 484 354 234 215 206 197 188 181 4 Export-Import Bank2 3 11,250 13,339 14,218 14,852 14,846 15,347 15,344 15,344 15,604 5 Federal Housing Administration4 477 413 288 173 169 166 162 156 155 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 1,337 1,337 8 Tennessee Valley Authority 11,190 13,115 14,365 14,980 14,875 14,805 14,890 14,930 14,980 9 United States Railway Association6 492 202 194 111 111 111 111 111 51 10 Federally sponsored agencies7 160,059 190,140 204,030 205,953 207,843 211,891 212,872 217,813 220,903 11 Federal Home Loan Banks 37,268 54,131 55,967 48,344 48,224 48,594 49,786 52,281 54,799 12 Federal Home Loan Mortgage Corporation 4,686 5,480 4,524 6,679 7,556 8,633 8,134 9,131 8,988 13 Federal National Mortgage Association 55,182 58,749 70,052 74,676 75,865 77,966 78,073 79,267 79,871 14 Farm Credit Banks 62,923 71,359 71,896 73,023 72,856 73,180 73,130 73,138 73,061 15 Student Loan Marketing Association (8) 421 1,591 3,231 3,342 3,518 3,749 3,996 4,184 MEMO 16 Federal Financing Bank debt9 87,460 110,698 126,424 135,940 135,859 137,707 138,769 139,936 141,734 Lending to federal and federally sponsored agencies 17 Export-Import Bank3 10,654 12,741 14,177 14,789 14,789 15,296 15,296 15,296 15,556 18 Postal Service6 1,520 1,288 1,221 1,154 1,154 1,154 1,154 1,087 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 13,255 13,150 13,080 13,165 13,205 13,255 21 United States Railway Association6 492 202 194 111 111 111 111 111 51 Other Lending10 22 Farmers Home Administration 39,431 48,821 53,261 54,776 54,471 55,186 55,691 56,476 57,701 23 Rural Electrification Administration 9,196 13,516 17,157 19,927 19,982 20,186 20,413 20,456 20,611 24 Other 11,262 12,740 22,774 26,928 27,202 27,694 27,939 28,305 28,473 1. Consists of mortgages assumed by the Defense Department between 1957 7. Includes outstanding noncontingent liabilities: Notes, bonds, and debenand 1963 under family housing and homeowners assistance programs. tures. 2. Includes participation certificates reclassified as debt beginning Oct. 1,1976. 8. Before late 1981, the Association obtained financing through the Federal 3. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. Financing Bank. 4. Consists of debentures issued in payment of Federal Housing Administration 9. The FFB, which began operations in 1974, is authorized to purchase or sell insurance claims. Once issued, these securities may be sold privately on the obligations issued, sold, or guaranteed by other federal agencies. Since FFB securities market. incurs debt solely for the purpose of lending to other agencies, its debt is not 5. Certificates of participation issued before fiscal 1969 by the Government included in the main portion of the table in order to avoid double counting. National Mortgage Association acting as trustee for the Farmers Home Adminis- 10. Includes FFB purchases of agency assets and guaranteed loans; the latter tration; Department of Health, Education, and Welfare; Department of Housing contain loans guaranteed by numerous agencies with the guarantees of any and Urban Development; Small Business Administration; and the Veterans particular agency being generally small. The Farmers Home Administration item Administration. consists exclusively of agency assets, while the Rural Electrification Administra- 6. Off-budget. tion entry contains both agency assets and guaranteed loans. NOTES TO TABLE 1.43 1. Immediate positions are net amounts (in terms of par values) of securities 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 • September 1984 1.45 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1983 1984 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998811 11998822 11998833 Nov. Dec. Jan/ Feb/ Mar/ Apr/ Mayr June 1 All issues, new and refunding1 47,732 79,138 86,421 5,945 9,833 5,068 4,591 5,505 5,569 7,090 6,391 Type of issue 2 General obligation 12,394 21,094 21,566 1,730 1,153 1,121 1,850 2,509 2,311 2,409 1,813 3 U.S. government loans2 34 225 96 15 15 0 2 2 3 3 3 4 Revenue 35,338 58,044 64,855 4,215 8,680 3,947 2,741 2,9% 33,,225588 4,681 4,578 5 U.S. government loans2 55 461 253 39 39 1 2 4 88 13 15 Type of issuer b State 5,288 8,438 7,140 405 204 327 935 584 886 497 447 7 Special district and statutory authority 27,499 45,060 51,297 3,358 6,323 3,502 2,139 3,014 2,826 3,767 3,830 8 Municipalities, counties, townships, school districts 14,945 25,640 27,984 2,182 3,306 1,239 1,517 1,907 1,857 2,826 2,114 9 Issues for new capital, total 46,530 74,804 72,441 5,448 9,405 4,065 4,004 4,687 4,437 6,007 5,806 Use of proceeds 10 Education 4,547 6,482 8,099 406 753 388 354 592 465 891 730 11 Transportation 3,447 6,256 4,387 353 438 126 336 56 548 402 653 12 Utilities and conservation 10,037 14,259 13,588 1,122 1,243 1,915 740 1,279 669 1,379 1,168 13 Social welfare 12,729 26,635 26,910 2,175 2,951 831 1,134 1,100 1,192 1,332 1,943 14 Industrial aid 7,651 8,349 7,821 584 2,945 128 288 79 355 457 344 15 Other purposes 8,119 12,822 11,637 808 1,075 677 1,152 1,581 1,208 1,546 %8 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11998811 11998822'' 11998833 Nov. Dec. Jan. Feb. Mar. Apr. May June 1 All issues1-2 70,441 84,638 98,550 8,103 6,812 7,690 7,629 5,442 6,047 4,023 7,265 2 Bonds 45,092 54,076 46,971 4,075 3,173 5,647 5,250 3,346 4,262 2,214 5,044 Type of offering 3 Public 38,103 44,278 46,971 4,075 3,173 5,647 5,250 3,346 4,262 2,214 5,044 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 12,822 7,842 22 423 179 452 68 691 383 1,440 6 Commercial and miscellaneous 5,229 5,442 5,158 22 201 976 626 258 1,0% 221 531 7 Transportation 2,052 1,491 1,038 111 105 10 75 180 69 0 225 8 Public utility 8,963 12,327 7,241 910 120 325 385 521 495 100 475 9 Communication 4,280 2,390 3,159 0 0 210 0 200 0 0 0 10 Real estate and financial 12,243 19,604 22,531 3,009 2,324 3,947 3,712 2,119 1,911 1,510 2,374 11 Stocks3 25,349 30,562 51,579 4,028 3,639 2,043 2,379 2,096 1,785 1,809 2,221 Type 12 Preferred 1,797 5,113 7,213 433 253 305 425 227 339 579 244 13 Common 23,552 25,449 44,366 3,595 3,386 1,738 1,954 1,869 1,446 1,230 1,977 Industry group 14 Manufacturing 5,074 5,649 14,135 458 649 427 299 387 165 442 584 15 Commercial and miscellaneous 7,557 7,770 13,112 1,598 852 465 616 486 732 718 316 16 Transportation 779 709 2,729 192 413 54 15 105 62 84 1 17 Public utility 5,577 7,517 5,001 622 245 225 45 134 188 116 282 18 Communication 1,778 2,227 1,822 13 12 30 20 18 94 16 11 19 Real estate and financial 4,584 6,690 14,780 1,145 1,468 842 1,384 966 544 433 1,027 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 Dec. Jan. Feb. Mar. Apr. May June' July INVESTMENT COMPANIES' 1 Sales of own shares2 45,675 84,793 6,846 10,274 8,233 8,857 9,549 8,657 8,397 7,559 2 Redemptions of own shares3 30,078 57,120 5,946 5,544 5,162 5,339 7,451 5,993 6,156 5,777 3 Net sales 15,597 27,673 900 4,730 3,071 3,518 2,098 2,664 2,241 1,782 4 Assets4 76,841 113,599 113,599 114,839 111,068 114,537 116,812 111,071 115,034 115,481 5 Cash position5 6,040 8,343 8,343 8,963 9,140 10,406 10,941 10,847 11,907 11,813 6 Other 70,801 105,256 105,256 105,876 101,928 104,131 105,871 100,224 103,127 103,668 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 Q1 1 Corporate profits with inventory valuation and capital consumption adjustment 189.9 159.1 225.2 161.7 163.3 151.6 179.1 216.7 245.0 260.0 277.4 2 Profits before tax 221.2 165.5 203.2 169.8 168.9 155.8 161.7 198.2 227.4 225.5 243.3 3 Profits tax liability 81.2 60.7 75.8 62.9 61.9 55.0 59.1 74.8 84.7 84.5 92.7 4 Profits after tax 140.0 104.8 127.4 106.9 107.0 100.8 102.6 123.4 142.6 141.1 150.6 5 Dividends 66.5 69.2 72.9 68.6 69.0 70.2 71.1 71.7 73.3 75.4 77.7 6 Undistributed profits 73.5 35.6 54.5 38.2 38.1 30.6 31.4 51.7 69.3 65.6 72.9 7 Inventory valuation -23.6 -9.5 -11.2 -8.9 -10.1 -12.6 -4.3 -12.1 -19.3 -9.2 -13.5 8 Capital consumption adjustment -7.6 3.1 33.2 .8 4.5 8.4 21.7 30.6 36.9 43.6 47.6 SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • September 1984 1.49 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1983' 1984 AAccccoouunntt 11997788 11997799 11998800 11998811'' 11998822 QL Q2 Q3 Q4 QL 1 Current assets 1,043.7 1,214.8 1,327.0 1,418.4 1,432.7 1,444.2 1,468.0 1,522.8 1,557.3 1,604.4 2 Cash 105.5 118.0 126.9 135.5 147.0 143.1 147.9 150.5 165.8 158.8 3 U.S. government securities 17.2 16.7 18.7 17.6 22.8 26.0 28.2 27.0 30.6 36.3 4 Notes and accounts receivable 388.0 459.0 506.8 532.0 519.2 525.3 539.3 565.0 577.8 597.7 5 Inventories 431.8 505.1 542.8 583.7 578.6 577.6 576.2 597.3 599.3 622.8 6 Other 101.1 116.0 131.8 149.5 165.2 172.1 176.4 183.0 183.7 188.8 7 Current liabilities 669.5 807.3 889.3 970.0 976.8 983.4 990.2 1,026.6 1,043.0 1,077.7 8 Notes and accounts payable 383.0 460.8 513.6 546.3 543.0 530.9 536.6 559.4 577.9 581.4 9 Other 286.5 346.5 375.7 423.7 433.8 452.6 453.6 467.2 465.2 496.3 10 Net working capital 374.3 407.5 437.8 448.4 455.9 460.7 477.8 496.3 514.3 526.7 11 MEMO; Current ratio1 1.559 1.505 1.492 1.462 1.467 1.469 1.483 1.483 1.493 1.489 1. Ratio of total current assets to total current liabilities. All data in this table reflect the most current benchmarks. Complete data are available upon request from the Flow of Funds Section, Division of Research and NOTE. For a description of this series, see "Working Capital of Nonfinancial Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. Corporations" in the July 1978 BULLETIN, pp. 533-37. 20551. SOURCE. Federal Trade Commission and Bureau of the Census. 1.50 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment • Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1983 1984 IInndduussttrryy11 11998822 11998833 1199884411 Ql Q2 Q3 Q4 Ql Q2 Q31 Q41 1 Total nonfarm business 282.71 269.22 307.60 261.71 261.16 270.05 283.96 293.15 302.70 316.22 318.33 Manufacturing 2 Durable goods industries 56.44 51.78 62.73 50.74 48.48 53.06 54.85 58.94 60.20 64.82 66.98 3 Nondurable goods industries 63.23 59.75 67.66 59.12 60.31 58.06 61.50 63.84 67.46 69.64 69.69 Nonmanufacturing 4 Mining 15.45 11.83 13.11 12.03 10.91 11.93 12.43 13.95 12.13 13.24 13.14 Transportation 5 Railroad 4.38 3.92 5.19 3.35 3.64 4.07 4.63 4.41 5.64 5.31 5.41 6 Air 3.93 3.77 2.91 4.09 4.10 3.57 3.32 2.77 2.98 3.19 2.70 7 Other 3.64 3.50 4.36 3.60 3.14 3.36 3.91 4.28 4.33 4.36 4.47 Public utilities 8 Electric 33.40 34.99 34.78 33.97 34.86 35.84 35.31 35.74 35.30 34.20 33.88 9 Gas and other 8.55 7.00 9.55 7.64 6.62 6.38 7.37 7.87 9.30 9.86 11.15 10 Commercial and other2 93.68 92.67 107.30 87.17 89.10 93.79 100.62 101.35 105.35 111.60 110.92 •Trade and services are no longer being reported separately. They are included 2. "Other" consists of construction; wholesale and retail trade; finance and in Commercial and other, line 10. insurance; personal and business services; and communication. 1. Anticipated by business. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A35 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1983 1984 AAccccoouunntt 11997788 11997799 11998800 11998811 11998822 Q2 Q3 Q4 Ql Q2 ASSETS Accounts receivable, gross 1 Consumer 52.6 65.7 73.6 85.5 89.5 91.3 92.3 92.8 96.9 99.6 2 Business 63.3 70.3 72.3 80.6 81.0 84.9 86.8 95.2 101.1 104.2 3 Total 116.0 136.0 145.9 166.1 170.4 176.2 179.0 188.0 198.0 203.8 4 LESS: Reserves for unearned income and losses.... 15.6 20.0 23.3 28.9 30.5 30.4 30.1 30.6 31.9 33.4 5 Accounts receivable, net 100.4 116.0 122.6 137.2 139.8 145.8 148.9 157.4 166.1 170.4 6 Cash and bank deposits 3.5 1 7 Securities 1.3 > 24.9' 27.5 34.2 39.7 44.3 45.0 45.3 47.1 48.1 8 All other 17.3 J 9 Total assets 122.4 140.9 150.1 171.4 179.5 190.2 193.9 202.7 213.2 218.5 LIABILITIES 10 Bank loans 6.5 8.5 13.2 15.4 18.6 16.3 17.0 19.1 14.7 15.3 11 Commercial paper 34.5 43.3 43.4 51.2 45.8 49.0 49.7 53.6 58.4 62.0 Debt 12 Short-term, n.e.c 8.1 8.2 7.5 9.6 8.7 9.6 8.7 11.3 12.2 15.0 13 Long-term, n.e.c 43.6 46.7 52.4 54.8 63.5 64.5 66.2 65.4 68.7 67.6 14 Other 12.6 14.2 14.3 17.8 18.7 24.0 24.4 27.1 29.8 29.0 15 Capital, surplus, and undivided profits 17.2 19.9 19.4 22.8 24.2 26.7 27.9 26.2 29.4 29.6 16 Total liabilities and capital 122.4 140.9 150.1 171.4 179.5 190.2 193.9 202.7 213.2 218.5 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. 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 JJJuuunnneee 333000,,, 111999888444''' Apr. May June Apr. May June Apr. May June 1 Total 104,206 818 997 973 24,643 27,451 24,412 23,825 26,454 23,439 2 Retail automotive (commercial vehicles) 25,557 466 816 660 2,002 2,391 2,336 1,536 1,575 1,676 3 Wholesale automotive 16,087 343 -402 -587 8,713 8,626 7,542 8,370 9,028 8,129 4 Retail paper on business, industrial, and farm equipment 30,175 -5 233 634 1,142 1,406 1,406 1,147 1,173 772 5 Loans on commercial accounts receivable and factored commercial accounts receivable 10,857 -78 302 -79 10,705 12,468 10,776 10,783 12,166 10,855 6 All other business credit 21,530 92 48 345 2,081 2,560 2,352 1,989 2,512 2,007 1. Not seasonally adjusted. NOTE. These data also appear in the Board's G.20 (422) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Financial Statistics • September 1984 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1984 IItteemm Jan. Feb. Mar. Apr. May June July Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 90.4 94.6 92.8 92.9 104.1 94.0 92.4 93.9 93.4 97.1 2 Amount of loan (thousands of dollars) 65.3 69.8 69.6 71.7 77.8 73.4 71.1 72.8 72.5 73.6 3 Loan/price ratio (percent) 74.8 76.6 77.1 79.2 77.8 80.4 79.2 79.8 79.9 78.2 4 Maturity (years) 27.7 27.6 26.7 27.8 27.3 27.9 28.0 27.6 28.1 28.2 5 Fees and charges (percent of loan amount)2 2.67 2.95 2.40 2.61 2.41 2.52 2.63 2.63 2.58 3.13 6 Contract rate (percent per annum) 14.16 14.47 12.20 11.80 11.78 11.56 11.55 11.68 11.61 11.97 Yield (percent per annum) 7 FHLBB series5 14.74 15.12 12.66 12.29 12.23 12.02 12.04 12.18 12.10 12.56 8 HUD series4 16.52 15.79 13.43 13.28 13.31 13.57 13.77 14.38 14.65 14.54 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 16.31 15.31 13.11 13.08 13.20 13.68 13.80 15.01 14.91 14.58 10 GNMA securities6 15.29 14.68 12.26 12.35 12.31 12.70 13.01 13.67 14.14 13.86 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 58,675 66,031 74,847 79,049 79,350 80,974 81,956 82,697 83,243 83,858 12 FHA/VA-insured 39,341 39,718 37,393 40,873 35,420 35,329 35,438 35,309 35,153 35,049 13 Conventional 19,334 26,312 37,454 38,177 43,930 45,645 46,518 47,388 48,090 48,809 Mortgage transactions (during period) 14 Purchases 6,112 15,116 17,554 1,285 1,507 2,030 1,775 1,379 1,209 1,226 15 2 2 3,528 20 723 0 235 0 0 0 Mortgage commitments1 16 Contracted (during period) 9,331 22,105 18,607 1,772 1,930 1,626 1,561 1,233 1,995 1,976 17 Outstanding (end of period) 3,717 7,606 5,461 5,470 5,872 5,333 5,135 4,981 5,640 6,281 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)* 18 Total 5,231 5;131 5,9% 8,049 8,566 8,980 9,143 9,224 9,478 19 FHA/VA 1,065 1,027 974 940 934 929 924 918 912 20 Conventional 4,166 4,102 5,022 7,109 7,632 8,050 8,219 8,306 8,566 Mortgage transactions (during period) 21 Purchases 3,800 23,673 23,089 1,419 1,389 1,291 983 987 2,204 n.a. 22 3,531 24,170 19,686 984 810 863 717 829 1,854 Mortgage commitments9 23 Contracted (during period) 6,896 28,179 32,852 1,470 1,386 1,874 1,701 1,966 2,712 24 Outstanding (end of period) 3,518 7,549 16,964 16,994 16,944 17,514 18,183 19,139 19,649 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 Q2 Q3 Q4 Ql Q2' 1 All holders 1,583,264 1,655,036 1,826,395 1,723,052 1,775,117 1,826,395 l,869,442r 1,927,668 2 1- to 4-family 1,065,294 1,105,717 1,214,592 1,146,926 1,182,356 1,214,592 l,244,157r 1,281,922 3 Multifamily 136,354 140,551 150,949 144,731 147,052 150,949 154,338' 159,494 4 Commercial 279,889 302,055 351,287 323,427 336,697 351,287 360,888' 375,275 5 Farm 101,727 106,713 109,567 107,968 109,012 109,567 110,059' 110,977 6 Major financial institutions 1,040,827 1,023,611 1,109,963 1,048,688 1,079,605 1,109,963 1,136,168 1,180,558 7 Commercial banks1 284,536 300,203 328,878 310,217 320,299 328,878 338,877 351,246 8 1- to 4-family 170,013 173,157 181,672 174,032 178,054 181,672 184,925 190,727 9 Multifamily 15,132 16,421 18,023 16,876 17,424 18,023 19,689 20,548 10 Commercial 91,026 102,219 119,843 110,437 115,692 119,843 124,571 129,961 11 Farm 8,365 8,406 9,340 8,872 9,129 9,340 9,692 10,010 12 Mutual savings banks 99,997 97,805 136,054 119,236 129,645 136,054 143,180 148,756 13 1- to 4-family 68,187 66,777 96,569 84,349 92,467 96,569 101,868 105,985 14 Multifamily 15,960 15,305 17,785 16,667 17,588 17,785 18,441 18,928 15 Commercial 15,810 15,694 21,671 18,192 19,562 21,671 22,841 23,813 16 Farm 40 29 29 28 28 29 30 30 17 Savings and loan associations 518,547 483,614 493,432 474,510 482,305 493,432 502,143 526,838 18 1- to 4-family 433,142 393,323 389,811 377,947 381,744 389,811 395,940 413,831 19 Multifamily 37,699 38,979 42,435 39,954 41,334 42,435 43,435 45,308 20 Commercial 47,706 51,312 61,186 56,609 59,227 61,186 62,768 67,699 21 Life insurance companies 137,747 141,989 151,599 144,725 147,356 151,599 151,968 153,718 22 1- to 4-family 17,201 16,751 15,385 15,860 15,534 15,385 14,971 14,982 23 Multifamily 19,283 18,856 19,189 18.778 18,857 19,189 19,153 19,312 24 Commercial 88,163 93,547 104,279 97,416 100,209 104,279 105,270 106,774 25 Farm 13,100 12,835 12,746 12,671 12,756 12,746 12,574 12,650 26 Federal and related agencies 126,094 138,138 147,370 142,094 142,224 147,370 150,784 152,687 27 Government National Mortgage Association 4,765 4,227 3,395 3,643 3,475 3,395 2,900 2,715 28 1- to 4-family 693 676 630 651 639 630 618 605 29 Multifamily 4,072 3,551 2,765 2,992 2,836 2,765 2,282 2,110 30 Farmers Home Administration 2,235 1,786 2,141 1,605 600 2,141 2,094 1,344 31 1- to 4-family 914 783 1,159 381 211 1,159 1,005 281 32 Multifamily 473 218 173 555 32 173 303 463 33 Commercial 506 377 409 248 113 409 319 81 34 Farm 342 408 400 421 244 400 467 519 35 Federal Housing and Veterans Administration 5,999 5,228 4,894 5,084 5,050 4,894 4,832 4,771 36 1- to 4-family 2,289 1,980 1,893 1,911 2,061 1,893 1,956 1,846 37 Multifamily 3,710 3,248 3,001 3,173 2,989 3,001 2,876 2,925 38 Federal National Mortgage Association 61,412 71,814 78,256 74,669 75,174 78,256 80,975 83,243 39 1- to 4-family 55,986 66,500 73,045 69,396 69,938 73,045 75,770 77,633 40 Multifamily 5,426 5,314 5,211 5,273 5,236 5,211 5,205 5,610 41 Federal Land Banks 46,446 50,350 51,052 50,858 51,069 51,052 51,004 51,136 42 1- to 4-family 2,788 3,068 3,000 3,030 3,008 3,000 2,982 2,958 43 Farm 43,658 47,282 48,052 47,828 48,061 48,052 48,022 48,178 44 Federal Home Loan Mortgage Corporation 5,237 4,733 7,632 6,235 6,856 7,632 8,979 9,478 45 1- to 4-family 5,181 4,686 7,559 6,119 6,799 7,559 8,847 8,931 46 Multifamily 56 47 73 116 57 73 132 547 47 Mortgage pools or trusts2 163,000 216,654 285,073 252,665 272,611 285,073 296,481 305,051 48 Government National Mortgage Association 105,790 118,940 159,850 139,276 151,597 159,850 166,261 170,893 49 1- to 4-family 103,007 115,831 155,801 135,628 147,761 155,801 161,943 166,415 50 Multifamily 2,783 3,109 4,049 3,648 3,836 4,049 4,318 4,478 51 Federal Home Loan Mortgage Corporation 19,853 42,964 57,895 50,934 54,152 57,895 59,376 61,267 52 1- to 4-family 19,501 42,560 57,273 50,446 53,539 57,273 58,776 60,636 53 Multifamily 352 404 622 488 613 622 600 631 54 Federal National Mortgage Association3 717 14,450 25,121 20,933 23,819 25,121 28,354 29,256 55 1- to 4-family 717 14,450 25,121 20,933 23,819 25,121 28,354 29,256 56 Farmers Home Administration 36,640 40,300 42,207 41,522 43,043 42,207 42,490 43,635 57 1- to 4-family 18,378 20,005 20,404 20,728 21,083 20,404 20,573 21,331 58 Multifamily 3,426 4,344 5,090 4,343 5,042 5,090 5,081 5,081 59 Commercial 6,161 7,011 7,351 7,303 7,542 7,351 7,456 7,764 60 Farm 8,675 8,940 9,362 9,148 9,376 9,362 9,380 9,459 61 Individual and others4 253,343 276,633 283,989 279,605 280,677 283,989 286,009' 289,372 62 1- to 4-family5 167,297 185,170 185,270 185,515 185,699 185,270 185,629' 186,505 63 Multifamily 27,982 30,755 32,533 31,868 31,208 32,533 32,823' 33,553 64 Commercial 30,517 31,895 36,548 33,222 34,352 36,548 37,663' 39,183 65 Farm 27,547 28,813 29,638 29,000 29,418 29,638 29,894' 30,131 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 Domestic Nonfinancial Statistics • September 1984 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1983 1984 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June July Amounts outstanding (end of period) 1 Total 314,910 335,691 355,849 396,082 394,922 399,177 402,466 407,671 418,080 427,565 435,367 By major holder 2 Commercial banks 147,013 147,622 152,490 171,978 171,934 175,941 177,625 181,022 186,668 191,519 195,265 3 Finance companies .... 76,756 89,818 98,693 102,862 101,680 101,702 101,619 101,119 102,967 104,460 106,219 4 Credit unions 44,041 45,953 47,253 53,471 53,882 54,851 55,892 56,962 58,517 59,893 61,151 5 Retailers2 28,697 31,348 32,735 35,911 34,505 33,455 33,208 33,327 33,730 34,206 34,022 6 Savings and loans 9,911 12,410 15,823 21,615 21,823 22,269 23,071 23,957 24,915 25,837 26,767 7 Gasoline companies ... 4,468 4,403 4,063 4,131 4,300 4,025 3,944 3,955 4,020 4,289 4,472 8 Mutual savings banks.. 4,024 4,137 4,792 6,114 6,798 6,934 7,107 7,329 7,263 7,361 7,471 By major type of credit 9 Automobile 116,838 125,331 131,086 142,449 143,186 146,047 146,047 147,944 152,225 155,937 159,649 1 1 1 0 1 2 Co I D m n i d m r i e r e c e r t c c t l i o a p l a a n b p s e a r n ks... 6 3 2 1 5 6 , , , 5 2 3 3 3 0 6 3 3 5 2 3 8 3 4 , , , 0 7 3 8 0 7 1 6 5 5 2 3 9 3 4 , , , 5 4 7 5 7 5 5 2 5 67,55 ( ( 73 3 ) ) 68,74 ( ( 73 3 ) ) 71,32 ( ( 73 3 ) ) 71,23 ( ( 73 3 ) ) 73,01 ( ( 63 3 ) ) 75,78 ( ( 73 3 ) ) 78,01 ( ( 8 3 3 ) ) 80,1 ( ( 033 3 ) ) 13 Credit unions 21,060 21,975 22,596 25,574 25,771 26,234 26,732 27,244 27,988 28,646 29,248 14 Finance companies .. 34,242 45,275 48,935 49,318 48,668 48,486 48,078 47,684 48,450 49,273 50,298 15 Revolving 58,506 64,500 69,998 80,823 78,566 77,671 79,110 80,184 82,436 84,598 85,588 16 Commercial banks... 29,765 32,880 36,666 44,184 43,118 43,506 45,235 46,149 47,936 49,374 50,358 17 Retailers 24,273 27,217 29,269 32,508 31,148 30,140 29,931 30,080 30,480 30,935 30,758 18 Gasoline companies . 4,468 4,403 4,063 4,131 4,300 4,025 3,944 3,955 4,020 4,289 4,472 19 Mobile home 17,321 17,958 22,254 23,680 23,668 23,571 23,661 23,850 24,104 24,427 24,751 20 Commercial banks... 10,371 10,187 9,605 9,842 9,829 9,663 9,589 9,580 9,573 9,621 9,681 21 Finance companies .. 3,745 4,494 9,003 9,365 9,345 9,324 9,333 9,361 9,434 9,528 9,612 22 Savings and loans ... 2,737 2,788 3,143 3,906 3,923 4,003 4,147 4,306 4,478 4,644 4,811 23 Credit unions 469 489 503 567 571 581 592 603 619 634 647 24 Other 122,244 127,903 132,511 149,130 149,502 151,888 153,648 155,693 159,315 162,603 165,379 25 Commercial banks... 45,341 46,474 46,664 50,395 50,240 51,445 51,564 52,277 53,372 54,506 55,123 26 Finance companies .. 38,769 40,049 40,755 44,179 43,667 43,892 44,208 44,074 45,083 45,659 46,309 27 Credit unions 22,512 23,490 24,154 27,330 27,540 28,036 28,568 29,115 29,910 30,613 31,256 28 Retailers 4,424 4,131 3,466 3,403 3,357 3,315 3,277 3,247 3,250 3,271 3,264 29 Savings and loans ... 7,174 9,622 12,680 17,709 17,900 18,266 18,924 19,651 20,437 21,193 21,956 30 Mutual savings banks 4,024 4,137 4,792 6,114 6,798 6,934 7,107 7,329 7,263 7,361 7,471 Net change (during period)4 31 Total 1,448 18,217 13,096 5,782 4,469 6,608 5,870 6,408 10,233 7,825 7,106 By major holder 32 Commercial banks -7,163 607 4,442 3,977 2,029 4,914 3,422 4,025 6,065 3,835 3,192 33 Finance companies .... 8,438 13,062 4,504 -146 -66 258 -193 -350 1,304 1,353 1,402 34 Credit unions -2,475 1,913 1,298 731 916 712 1,230 1,529 1,453 962 1,566 35 Retailers2 329 1,103 651 537 422 325 355 278 476 471 -101 36 Savings and loans 1,485 1,682 2,290 589 364 414 813 868 979 1,069 847 37 Gasoline companies ... 739 -65 -340 -31 72 -172 2 2 46 89 -40 38 Mutual savings banks .. 95 -85 251 126 731 156 242 66 -90 46 240 By major type of credit 39 Automobile 477 8,495 4,898 1,468 2,106 2,799 326 2,158 3,689 2,897 3,422 4 4 4 1 2 0 Co D I m n i d r m e ir e c e t r c c t l i o a p a l a n b p s e a r n ks... - - - 2 3 5 , , , 7 1 8 2 0 3 6 4 0 - - 2 3 - , , 8 5 4 5 9 5 8 7 5 -2 2 3 - 2 9 4 5 1,5 ( ( 63 3 8 ) ) 1,7 ( ( 223 3 ) ) 2,6 ( ( 35 3 3 ) ) 4 ( ( 3 3 23 ) ) 1,7 ( ( 663 3 ) ) 2,8 ( ( 07 3 3 ) ) 1,9 ( ( 073 3 ) ) 1,8 ( ( 5 3 23 ) ) 43 Credit unions -1,184 914 622 349 428 276 660 734 695 461 750 44 Finance companies .. 7,491 11,033 3,505 -449 -44 -112 -766 -342 187 529 820 45 Revolving 1,415 4,467 4,365 1,690 505 1,273 2,962 1,868 2,817 1,569 640 46 Commercial banks... -97 3,115 3,808 1,207 18 1,127 2,613 1,568 2,298 1,047 764 47 Retailers 773 1,417 897 515 414 318 347 298 473 433 -84 48 Gasoline companies . 739 -65 -340 -31 72 -172 2 2 46 89 -40 49 Mobile home 483 1,049 609 1 -92 -127 285 285 302 454 462 50 Commercial banks... -276 -186 -508 39 -15 -112 -85 27 -50 10 31 51 Finance companies .. 355 749 471 -166 -104 -93 218 110 156 258 185 52 Savings and loans ... 430 466 633 120 18 68 141 132 183 174 230 53 Credit unions -25 20 14 9 9 10 10 16 13 12 16 54 Other -927 4,206 3,224 2,623 1,950 2,662 2,298 2,097 3,425 2,905 2,582 55 Commercial banks... -960 1,133 372 1,163 304 1,264 463 653 1,010 871 545 56 Finance companies .. 592 1,280 528 469 82 463 355 -118 961 566 397 57 Credit unions -1,266 975 662 374 479 426 558 780 745 489 800 58 Retailers -444 -314 -246 22 8 7 8 -20 3 38 -17 59 Savings and loans ... 1,056 1,217 1,657 469 346 346 673 735 796 895 617 60 Mutual savings banks 95 -85 251 126 731 156 242 66 -90 46 240 A 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, $80.7 billion at the end of entertainment companies. 1981, $85.9 billion at the end of 1982, and $96.9 billion at the end of 1983. 3. Not reported after December 1982. These data also appear in the Board's G.19 (421) release. For address, see inside front cover. 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 1984 Item 1983 Feb. Mar. Apr. May June July Aug. INTEREST RATES Commercial banks1 1 48-month new car2 16.54 16.83 13.92 13.32 13.53 14.08 2 24-month personal 18.09 18.65 16.68 16.16 16.35 16.75 3 120-month mobile home2 17.45 18.05 15.91 15.45 15.54 15.72 4 Credit card 17.78 18.51 18.73 18.73 18.71 18.81 Auto finance companies 5 New car 16.17 16.15 12.58 14.11 14.05 14.06 14.17 14.33 14.68 6 Used car 20.00 20.75 18.74 17.59 17.52 17.59 17.60 17.64 17.77 OTHER TERMS3 Maturity (months) 7 New car 45.4 46.0 45.9 46.4 46.7 47.1 47.7 48.2 48.6 8 Used car 35.8 34.0 37.9 39.4 39.4 39.5 39.7 39.8 39.8 Loan-to-value ratio 9 New car 86.1 85.3 86.0 10 Used car 91.8 90.3 92.0 92 92 92 Amount financed (dollars) 11 New car 7,339 8,178 8,787 9,072 9,139 9,190 9,262 9,311 9,377 12 Used car 4,343 4,746 5,033 5,418 5,474 5,547 5,675 5,774 5,763 1. Data for midmonth of quarter only. NOTE. These data also appear in the Board's G.19 (421) release. For address, 2. Before 1983 the maturity for new car loans was 36 months, and for mobile see inside front cover, home loans was 84 months. 3. At auto finance companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • September 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' 1984 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997788'' 11997799'' 11998800'' 11998811'' 11998822'' H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .... 369.8 386.0 344.6 380.4 404.1 526.4 368.0 358.1 450.1 448.9 563.8 673.9 By sector and instrument 2 U.S. government 53.7 37.4 79.2 87.4 161.3 186.6 88.1 104.1 218.4 222.0 151.1 173.0 3 Treasury securities 55.1 38.8 79.8 87.8 162.1 186.7 88.5 105.5 218.8 222.1 151.2 173.2 4 Agency issues and mortgages -1.4 -1.4 -.6 -.5 -.9 -.1 -.4 -1.4 -.4 -.1 -.1 -.2 5 Private domestic nonfinancial sectors 316.2 348.6 265.4 293.1 242.8 339.8 279.9 254.0 231.7 266.9 412.7 500.9 6 Debt capital instruments 199.7 211.2 192.0 159.1 158.9 239.3 140.3 140.7 177.2 214.4 264.2 265.1 7 Tax-exempt obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 35.2 8 Corporate bonds 21.1 17.3 26.7 21.8 18.7 15.7 16.8 12.0 25.3 23.0 8.4 24.0 9 Mortgages 150.2 163.6 135.1 114.6 86.5 167.3 98.8 84.8 88.2 128.6 206.0 205.8 10 Home mortgages 112.2 120.0 96.7 76.0 52.5 108.7 62.3 53.6 51.3 83.8 133.6 139.2 11 Multifamily residential 9.2 7.8 8.8 4.3 5.5 8.4 3.8 5.1 5.8 2.8 13.9 16.8 12 Commercial 21.7 23.9 20.2 24.6 23.6 47.3 22.9 19.7 27.5 40.3 54.3 47.7 13 Farm 7.2 11.8 9.3 9.7 5.0 2.9 9.8 6.5 3.5 1.6 4.1 2.1 14 Other debt instruments 116.5 137.5 73.4 134.0 83.9 100.5 139.6 113.2 54.6 52.5 148.5 235.9 15 Consumer credit 48.8 45.4 6.3 26.7 21.0 51.3 21.9 20.6 21.4 35.9 66.6 104.3 16 Bank loans n.e.c 37.4 51.2 36.7 54.7 55.5 27.3 65.1 69.0 42.0 13.3 41.2 79.6 17 Open market paper 5.2 11.1 5.7 19.2 -4.1 -1.2 24.1 10.0 -18.2 -10.6 8.3 27.4 18 Other 25.1 29.7 24.8 33.4 11.5 23.1 28.6 13.6 9.4 13.9 32.3 24.6 19 By borrowing sector 316.2 348.6 265.4 293.1 242.8 339.8 279.9 254.0 231.7 266.9 412.7 500.9 20 State and local governments 16.5 17.6 17.2 6.2 31.3 36.7 7.3 24.1 38.5 41.9 31.6 16.6 21 Households 172.0 179.3 122.1 127.5 94.5 175.4 113.1 94.7 94.3 134.8 216.0 253.0 22 Farm 14.6 21.4 14.4 16.3 7.6 4.3 12.2 9.6 5.6 .8 7.9 -.8 23 Nonfarm noncorporate 32.4 34.4 33.7 40.2 39.5 63.9 38.7 36.6 42.3 50.1 77.6 73.5 24 Corporate 80.6 96.0 78.1 102.9 70.0 59.5 108.7 89.0 51.0 39.3 79.6 158.7 25 Foreign net borrowing in United States 33.8 20.2 27.2 27.2 15.7 18.9 24.4 10.2 21.2 15.3 22.5 22.1 26 Bonds 4.2 3.9 .8 5.4 6.7 3.8 7.6 2.4 11.0 4.6 2.9 2.0 27 Bank loans n.e.c 19.1 2.3 11.5 3.7 -6.2 4.9 6.2 -7.6 -4.7 11.3 -1.5 -5.8 28 Open market paper 6.6 11.2 10.1 13.9 10.7 6.0 7.1 12.5 9.0 -4.6 16.5 20.1 29 U.S. government loans 3.9 2.9 4.7 4.2 4.5 4.3 3.5 3.0 6.0 3.9 4.6 5.9 30 Total domestic plus foreign 403.6 406.2 371.8 407.6 419.8 545.3 392.4 368.3 471.4 504.2 586.3 696.0 Financial sectors 31 Total net borrowing by financial sectors 74.1 82.4 62.9 84.1 69.0 90.7 83.9 84.2 53.8 74.0 107.3 116.3 By instrument 32 U.S. government related 37.1 47.9 44.8 47.4 64.9 67.8 50.9 60.0 69.7 66.2 69.4 69.4 33 Sponsored credit agency securities 23.1 24.3 24.4 30.5 14.9 1.4 33.2 22.4 7.5 -4.1 6.9 31.1 34 Mortgage pool securities 13.6 23.1 19.2 15.0 49.5 66.4 15.3 36.8 62.2 70.3 62.5 3388..33 35 Loans from U.S. government .4 .6 1.2 1.9 .4 2.4 g 36 Private financial sectors 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 46.9 37 Corporate bonds 7.5 7.8 7.1 -.8 2.5 17.1 -1.2 -2.5 7.6 15.2 18.9 10.2 38 Mortgages .1 * -.1 -.5 .1 * -.2 .1 .1 39 Bank loans n.e.c 2.3 -.5 -.9 .9 1.9 -.2 -.1 3.2 .6 -2.5 2.2 -4.3 40 Open market paper 14.6 18.0 4.8 20.9 -1.2 13.0 19.5 12.3 -14.7 7.2 18.8 25.3 41 Loans from Federal Home Loan Banks 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 --22..00 1155..77 By sector 42 Sponsored credit agencies 23.5 24.8 25.6 32.4 15.3 1.4 35.6 23.2 7.5 -4.1 6.9 31.1 43 Mortgage pools 13.6 23.1 19.2 15.0 49.5 66.4 15.3 36.8 62.2 70.3 62.5 38.3 44 Private financial sectors 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 46.9 45 Commercial banks 1.3 1.6 .5 .4 1.2 .5 .5 .7 1.7 .8 ..22 * 46 Bank affiliates 7.2 6.5 6.9 8.3 1.9 8.6 9.7 9.7 -5.8 6.1 1111..11 20.0 47 Savings and loan associations 13.5 12.6 7.4 15.5 2.5 -2.7 13.7 14.3 -9.3 -10.0 4.5 16.6 48 Finance companies 17.6 16.5 5.8 12.8 -.9 17.0 9.4 * -1.9 11.4 22.7 10.8 49 REITs -1.4 -1.3 -2.2 .2 .1 .2 .2 .1 .1 .2 .2 .1 All sectors 50 Total net borrowing 477.7 488.7 434.7 491.8 488.8 635.9 476.3 452.5 525.1 578.2 693.6 812.3 51 U.S. government securities 90.5 84.8 122.9 133.0 225.9 254.4 136.7 163.5 288.3 288.4 220.5 242.5 52 State and local obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 35.2 53 Corporate and foreign bonds 32.8 29.0 34.6 26.4 27.8 36.5 23.2 11.8 43.8 42.8 30.3 36.2 54 Mortgages 150.2 163.5 134.9 113.9 86.5 167.2 98.5 84.8 88.2 128.5 206.0 205.7 55 Consumer credit 48.8 45.4 6.3 26.7 21.0 51.3 21.9 20.6 21.4 35.9 66.6 104.3 56 Bank loans n.e.c 58.8 52.9 47.3 59.3 51.2 32.0 71.2 64.6 37.9 22.1 41.9 69.4 57 Open market paper 26.4 40.3 20.6 54.0 5.4 17.8 50.7 34.8 -23.9 -8.0 43.6 72.8 58 Other loans 41.9 42.4 37.8 55.8 17.2 20.3 49.5 28.5 5.9 5.7 35.0 46.2 External corporate equity funds raised in United States 59 Total new share issues 1.9 -3.8 22.2 -4.1 35.3 67.8 -17.4 23.3 47.2 83.5 52.0 -37.4 60 Mutual funds -.1 .1 5.2 6.3 18.4 32.8 5.7 12.5 24.3 36.8 28.9 44.8 61 All other 1.9 -3.9 17.1 -10.4 16.9 34.9 -23.0 10.9 22.9 46.8 23.1 -82.3 62 Nonfinancial corporations -.1 -7.8 12.9 -11.5 11.4 28.3 -23.8 7.0 15.8 38.2 18.4 -84.5 63 Financial corporations 2.5 3.2 2.1 .8 4.0 2.7 1.1 3.9 4.1 2.8 2.5 2.9 64 Foreign shares purchased in United States -.5 .8 2.1 .3 1.5 4.0 -.4 -.1 3.0 5.7 2.2 -.7 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 1984 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997788 11997799 11998800 11998811 11998822 11998833 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to domestic nonfinancial sectors 369.8 386.0 344.6 380.4 404.1 526.4 368.0 358.1 450.1 488.9 563.8 673.9 By public agencies and foreign 2 Total net advances 102.3 75.2 97.0 97.7 109.1 117.1 90.3 100.8 117.3 111199..77 114.6 112211..99 3 U.S. government securities 36.1 -6.3 15.7 17.2 18.0 27.6 12.4 9.7 26.2 40.5 14.6 32.0 4 Residential mortgages 25.7 35.8 31.7 23.5 61.0 76.1 25.5 47.6 74.4 80.1 72.0 52.0 5 FHLB advances to savings and loans 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 -2.0 15.7 6 Other loans and securities 28.0 36.5 42.4 40.9 29.3 20.5 37.3 32.4 26.2 11.1 29.9 22.2 Total advanced, by sector 7 U.S. government 17.1 19.0 23.7 24.1 16.0 9.7 19.8 14.8 17.1 9.1 10.3 8.4 8 Sponsored credit agencies 40.3 53.0 45.6 48.2 65.3 69.5 50.1 61.8 68.7 68.2 70.7 72.9 9 Monetary authorities 7.0 7.7 4.5 9.2 9.8 10.9 14.1 3.8 15.7 15.6 6.2 17.2 10 Foreign 38.0 -4.6 23.2 16.3 18.1 27.1 6.3 20.4 15.8 26.8 27.4 23.4 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 67.8 5500..99 60.0 69.7 6666..22 6699..44 6699..44 12 Foreign 33.8 20.2 27.2 27.2 15.7 18.9 24.4 10.2 21.2 15.3 22.5 22.1 Private domestic funds advanced 13 Total net advances 338.4 379.0 319.6 357.3 375.6 495.9 353.0 327.5 423.8 450.8 541.1 643.6 14 U.S. government securities 54.3 91.1 107.2 115.8 207.9 226.9 124.3 153.7 262.0 247.8 205.9 210.5 15 State and local obligations 28.4 30.3 30.3 22.7 53.8 56.3 24.7 43.9 63.7 62.8 49.7 35.2 16 Corporate and foreign bonds 23.4 18.5 19.3 18.8 14.8 14.6 15.9 -.1 29.6 22.9 6.3 21.5 17 Residential mortgages 95.6 91.9 73.7 56.7 -3.2 40.9 40.6 11.0 -17.4 6.4 75.5 103.8 18 Other mortgages and loans 149.3 156.3 96.2 159.5 103.2 150.2 162.7 130.2 76.3 98.7 201.7 288.2 19 LESS: Federal Home Loan Bank advances 12.5 9.2 7.1 16.2 .8 -7.0 15.1 11.1 -9.5 -12.1 -2.0 15.7 Private financial intermediation 20 Credit market funds advanced by private financial institutions 315.7 313.9 281.5 323.4 285.6 377.1 323.2 274.4 296.7 323.2 430.9 505.6 21 Commercial banking 128.5 123.1 100.6 102.3 107.2 136.1 112.7 99.9 114.5 121.6 150.6 171.7 22 Savings institutions 72.3 56.5 54.5 27.8 31.3 136.8 18.4 25.2 37.4 128.9 144.6 155.9 23 Insurance and pension funds 89.5 85.9 94.3 97.4 108.8 99.2 101.4 111.4 106.3 89.5 108.9 108.5 24 Other finance 25.5 48.5 32.1 96.0 38.3 5.0 90.8 37.9 38.6 -16.8 26.8 69.6 25 Sources of funds 315.7 313.9 281.5 323.4 285.6 377.1 323.2 274.4 296.7 323.2 430.9 505.6 26 Private domestic deposits and RPs 142.7 137.4 169.6 211.9 174.7 203.2 217.9 147.6 201.9 192.7 213.7 281.0 27 Credit market borrowing 37.0 34.5 18.1 36.7 4.1 22.9 33.0 24.2 -16.0 7.8 38.0 46.9 28 Other sources 136.1 142.0 93.9 74.8 106.7 151.0 72.3 102.6 110.8 122.8 179.2 177.7 29 Foreign funds 6.5 27.6 -21.7 -8.7 -26.7 22.1 -9.8 -28.3 -25.1 -14.2 58.5 6.6 30 Treasury balances 6.8 .4 -2.6 -1.1 6.1 -5.3 -10.2 -2.0 14.1 10.1 -20.8 5.3 31 Insurance and pension reserves 74.9 72.8 83.9 90.4 104.6 98.4 101.0 111.4 97.8 87.7 109.1 108.1 32 Other, net 47.9 41.2 34.2 -5.9 22.8 35.8 -8.7 21.5 24.1 39.1 32.4 57.7 Private domestic nonfinancial investors 33 Direct lending in credit markets 59.6 99.6 56.1 70.6 94.2 141.7 62.8 77.3 111.0 135.3 148.1 184.9 34 U.S. government securities 33.5 52.5 24.6 29.3 37.4 88.9 24.5 35.3 39.5 95.9 82.0 132.2 35 State and local obligations 3.6 9.9 7.0 10.5 34.4 42.6 12.5 30.1 38.7 52.7 32.6 21.9 36 Corporate and foreign bonds -6.3 -1.4 -5.7 -8.1 -5.2 1.2 -10.7 -17.7 7.3 -1.7 4.1 7.3 37 Open market paper 8.3 8.6 -3.1 2.7 -.1 3.9 8.2 3.5 -3.7 -8.1 15.9 1.9 38 Other 20.5 30.0 33.3 36.3 27.8 5.0 28.4 26.2 29.3 -3.4 13.5 21.6 39 Deposits and currency 153.9 146.8 181.1 221.9 181.9 222.4 229.3 152.1 211.7 214.5 230.2 301.2 40 Currency 9.3 8.0 10.3 9.5 9.7 14.3 11.2 6.7 12.7 14.8 13.8 17.6 41 Checkable deposits 16.2 18.3 5.2 18.0 15.7 21.4 13.3 1.9 29.5 48.0 -5.2 27.4 42 Small time and savings accounts 65.9 59.3 82.9 47.0 138.2 219.1 71.8 83.2 193.1 278.6 159.7 110.0 43 Money market fund shares 6.9 34.4 29.2 107.5 24.7 -44.1 110.8 39.4 10.0 -84.0 -4.2 30.2 44 Large time deposits 46.3 18.8 45.8 36.9 -7.7 -7.5 24.6 21.9 -37.3 -61.0 45.9 92.1 45 Security RPs 7.5 6.6 6.5 2.5 3.8 14.3 -2.6 1.1 6.6 11.0 17.5 21.3 46 Deposits in foreign countries 2.0 1.5 1.1 .5 -2.5 4.8 .2 -2.2 -2.9 7.0 2.7 2.6 47 Total of credit market instruments, deposits and currency 213.6 246.5 237.2 292.5 276.1 364.1 292.1 229.4 322.7 349.8 378.4 486.1 48 Public holdings as percent of total 25.3 18.5 26.1 24.0 26.0 21.5 23.0 27.4 24.9 23.7 19.5 17.5 49 Private financial intermediation (in percent) 93.3 82.8 88.1 90.5 76.0 76.0 91.6 83.8 70.0 71.7 79.6 78.6 50 Total foreign funds 44.6 23.0 1.5 7.6 -8.6 49.2 -3.5 -7.9 -9.3 12.6 85.9 30.0 MEMO: Corporate equities not included above 51 Total net issues 1.9 -3.8 22.2 -4.1 35.3 67.8 -17.4 23.3 47.2 83.5 52.0 -37.4 52 Mutual fund shares -.1 .1 5.2 6.3 18.4 32.8 5.7 12.5 24.3 36.8 28.9 44.8 53 Other equities 1.9 -3.9 17.1 -10.4 16.9 34.9 -23.0 10.9 22.9 46.8 23.1 -82.3 54 Acquisitions by financial institutions 4.7 12.9 24.9 20.1 39.2 58.4 22.6 11.0 67.3 78.2 38.5 24.3 55 Other net purchases -2.8 -16.7 -2.7 -24.2 -3.9 9.4 -40.0 12.3 -20.1 5.3 13.5 -61.7 NOTES BY LINE NUMBER. 32. Mainly retained earnings and net miscellaneous liabilities. 1. Line 1 of table 1.58. 33. Line 12 less line 20 plus line 27. 2. Sum of lines 3-6 or 7-10. 34-38. Lines 14-18 less amounts acquired by private finance. Line 38 includes 6. Includes farm and commercial mortgages. mortgages. 11. Credit market funds raised by federally sponsored credit agencies, and net 40. Mainly an offset to line 9. issues of federally related mortgage pool securities. 47. Lines 33 plus 39, or line 13 less line 28 plus 40 and 46. 13. Line 1 less line 2 plus line 11 and 12. Also line 20 less line 27 plus line 33. Also 48. Line 2/line 1. sum of lines 28 and 47 less lines 40 and 46. 49. Line 20/line 13. 18. Includes farm and commercial mortgages. 50. Sum of lines 10 and 29. 26. Line 39 less lines 40 and 46. 51. 53. Includes issues by financial institutions. 27. Excludes equity issues and investment company shares. Includes line 19. 29. Foreign deposits at commercial banks, bank borrowings from foreign NOTE. Full statements for sectors and transaction types in flows and in amounts branches, and liabilities of foreign banking agencies to foreign affiliates. outstanding may be obtained from Flow of Funds Section, Division of Research 30. Demand deposits at commercial banks. and Statistics, Board of Governors of the Federal Reserve System, Washington, 31. Excludes net investment of these reserves in corporate equities. D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • September 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 Dec. Jan. Feb. Mar. Apr. May June' July' Aug. 1 Industrial production 151.0 138.6 147.6 156.2 158.5 160.0 160.8 162.1 162.8' 164.3 165.8 166.2 Market groupings 2 Products, total 150.6 141.8 149.2 157.4 159.7 160.4 161.1 162.5 163.3 165.1 166.6 167.0 3 Final, total 149.5 141.5 147.1 155.2 157.5 158.0 158.6 160.2 161.1 163.0 164.7 165.0 4 Consumer goods 147.9 142.6 151.7 157.7 159.5 159.4 160.2 161.4 161.7 162.7 163.9 163.2 5 Equipment 151.5 139.8 140.8 151.8 154.9 156.1 156.4 158.5 160.3' 163.3 165.8 167.4 6 Intermediate 154.4 143.3 156.6 165.4 167.8 169.0 170.2 171.0 173.1 173.7 174.2 7 Materials 151.6 133.7 145.2 154.5 156.6 159.4 160.4 161.5 162.0' 163.0 164.4 164.9 Industry groupings 8 Manufacturing 150.4 137.6 148.2 156.8 159.5 161.4 162.1 163.4 164.2' 165.6 167.3 167.6 Capacity utilization (percent)1 9 Manufacturing 79.4 71.1 75.2 78.9 80.1 80.9 81.0 81.5 81.7' 82.1 82.8 82.8 10 Industrial materials industries 80.7 70.1 75.2 79.6 80.6 81.9 82.2 82.5 82.7' 83.0 83.5 83.6 11 Construction contracts (1977 = 100)2 111.0 111.0 138.0 134.0 150.0 150.0 144.0 145.0 165.0 148.0 152.0 n.a. 12 Nonagricultural employment, total3 138.5 136.2 136.8 139.9 140.4 141.1 141.4 142.0 142.5 143.1 143.4 143.6 13 Goods-producing, total 109.4 102.6 101.5 103.8 104.6 105.4 105.5 106.2 106.6 107.1 107.6 107.7 14 Manufacturing, total 103.7 96.9 96.0 98.4 99.0 99.6 100.1 100.4 100.6 100.9 101.4 101.5 15 Manufacturing, production-worker ... 98.0 89.4 88.7 91.9 92.5 93.1 93.6 94.0 94.1 94.3 94.7 94.9 16 Service-producing 154.4 154.6 156.1 159.6 160.0 160.7 161.1 161.6 162.2 162.8 163.0 163.3 17 Personal income, total 386.5 410.3 435.6 454.0 459.9 464.0 466.8 471.3 473.1 476.6 480.5 1 18 Wages and salary disbursements 349.7 367.4 388.6 404.7 409.3 411.0 413.3 418.1 419.0 422.4 425.2 n.a. 19 Manufacturing 287.3 285.5 294.7 310.4 314.0 317.1 318.8 322.0 321.8 323.3 325.1 1 20 Disposable personal income4 372.6 398.0 427.1 446.9 453.0 457.1 459.9 464.0' 464.9' 468.4 472.1 t 21 Retail sales5 330.6 326.0 373.0 391.4 407.3 403.0 396.9 410.8 413.6 417.7 409.4 405.9 Prices6 22 Consumer 272.4 289.1 298.4 303.5 305.2 306.6 307.3 308.8 309.7 310.7 311.7 n.a. 23 Producer finished goods 269.8 280.7 285.2 287.2 289.5 290.6 291.7 291.4 291.5 291.2 292.6 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 Q3 Q4 Q1 Q2' Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Total industry 151.8 155.5 159.8 163.1 196.4 197.3 198.4 199.7 77.3 78.8 80.5 81.6 2 Mining 116.1 121.0 124.2 125.0 165.4 165.5 165.7 165.9 70.2 73.1 75.0 75.4 3 Utilities 178.2 178.4 179.2 183.1 211.1 212.4 213.8 215.3 84.4 84.0 83.8 85.0 4 Manufacturing 152.8 156.5 161.0 164.4 197.5 198.4 199.5 201.0 77.4 78.9 80.7 81.8 5 Primary processing 152.8 156.4 160.5 162.3 195.3 195.8 196.5 197.2 78.3 79.9 81.7 82.3 6 Advanced processing 152.8 156.1 161.7 165.2 198.6 199.7 201.1' 203.0 76.9 78.2 80.3 81.4 7 Materials 149.9 154.3 158.8 162.2 193.4 194.0 194.7 195.9 77.5 79.6 81.6 82.7 8 Durable goods 144.2 150.3 157.6 162.0 196.0 196.5 197.1 198.3 73.6 76.5 79.9 81.6 9 Metal materials 89.3 93.8 97.3 100.3 139.8 139.6 139.1 138.5 63.9 67.2 70.0 72.4 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 188.0 193.2 193.2 196.1 231.6 232.7 234.2 236.2 81.2 83.0 82.5 83.0 12 Paper 162.8 167.4 165.8 168.5 166.9 167.7 168.5 169.5 97.5 99.8 98.4 99.4 13 Chemical 227.8 235.0 236.7 240.8 298.3 300.1 302.3 305.2 76.4 78.3 78.3 78.9 14 Energy materials 127.4 127.8 131.2 132.4 154.7 155.3 155.8 156.4 82.3 82.3 84.2 84.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A43 2.11 Continued Previous cycle1 Latest cycle2 1983 1983 1984 SSeerriieess High Low High Low Aug. Dec. Jan. Feb. Mar. Apr. May' June' July Aug. Capacity utilization rate (percent) 15 Total industry 88.4 71.1 87.3 69.6 77.3 79.0 80.1 80.7 80.9 81.3 81.5 82.1 82.6 82.6 16 Mining 91.8 86.0 88.5 69.6 70.2 74.7 75.4 74.9 74.7 74.3 75.4 76.4 78.0 77.7 17 Utilities 94.9 82.0 86.7 79.0 85.0 85.7 84.8 82.5 84.0 85.0 84.7 85.4 84.3 84.5 18 Manufacturing 87.9 69.0 87.5 68.8 77.3 78.9 80.1 80.9 81.0 81.5 81.7 82.1 82.8 82.8 19 Primary processing 93.7 68.2 91.4 66.2 78.1 79.2 80.6 82.2 82.2 82.2 82.4 82.3 82.7 82.7 20 Advanced processing.... 85.5 69.4 85.9 70.0 76.9 78.6 80.0 80.4 80.6 81.0 81.2 81.9 82.9 82.9 21 Materials 92.6 69.3 88.9 66.6 77.4 79.6 80.6 81.9 82.2 82.5 82.7 83.0 83.5 83.6 22 Durable goods 91.4 63.5 88.4 59.8 73.6 77.0 78.5 80.5 80.7 81.5 81.5 82.0 83.0 83.1 23 Metal materials 97.8 68.0 95.4 46.2 64.0 66.8 67.3 71.1 71.5 73.0 72.2 72.0 73.0 71.8 24 Nondurable goods 94.4 67.4 91.7 70.7 81.1 81.6 81.9 83.0 83.6 83.2 83.9 83.5 83.5 83.8 25 Textile, paper, and chemical 95.1 65.4 92.3 68.6 80.5 81.2 81.5 82.8 83.1 82.7 83.3 82.9 83.1 83.5 26 Paper 99.4 72.4 97.9 86.3 96.9 98.8 99.3 99.0 96.8 98.5 99.8 99.7 100.4 n.a. 27 Chemical 95.5 64.2 91.3 64.0 75.5 76.2 76.7 78.6 79.5 78.9 79.0 78.8 78.6 n.a. 28 Energy materials 94.5 84.4 88.9 78.5 82.8 83.6 84.4 84.1 84.1 84.5 84.3 84.9 85.3 85.1 1. Monthly high 1973; monthly low 1975. NOTE. These data also appear in the Board's G.3 (402) release. For address, see 2. Monthly highs 1978 through 1980; monthly lows 1982. inside front cover. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1984 CCaatteeggoorryy 11998811 11998822 11998833 Jan. Feb. Mar. Apr. May June July Aug. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 172,272 174,450 176,414 177,733 177,882 178,033 178,185 178,337 178,501 178,669 178,821 2 Labor force (including Armed Forces)1 110,812 112,383 113,749 114,415 114,896 115,121 115,461 116,017 116,094 116,167 115,732 3 Civilian labor force 108,670 110,204 111,550 112,215 112,693 112,912 113,245 113,803 113,877 113,938 113,494 4 Nonagricultural industries2 97,030 96,125 97,450 99,918 100,496 100,859 101,009 101,899 102,344 102,050 101,744 5 Agriculture 3,368 3,401 3,383 3,271 3,395 3,281 3,393 3,389 3,403 3,345 3,224 Unemployment ft Number 8,273 10,678 10,717 9,026 8,801 8,772 8,843 8,514 8,130 8,543 8,526 7 Rate (percent of civilian labor force) ... 7.6 9.7 9.6 8.0 7.8 7.8 7.8 7.5 7.1 7.5 7.5 8 Not in labor force 61,460 62,067 62,665 63,318 62,986 62,912 62,724 62,320 62,407 62,502 63,089 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 91,156 89,596 89,986 92,391 92,846 93,058 93,449 93,768 94,076 94,378 94,510 10 Manufacturing 20,170 18,853 18,678 19,254 19,373 19,466 19,530 19,570 19,639 19,744 19,740 11 Mining 1,132 1,143 1,021 975 978 978 984 995 1,002 1,002 1,015 12 Contract construction 4,176 3,911 3,949 4,154 4,226 4,151 4,246 4,286 4,348 4,380 4,357 13 Transportation and public utilities 5,157 5,081 4,943 5,095 5,105 5,112 5,129 5,144 5,151 5,179 5,182 14 Trade 20,551 20,401 20,508 21,320 21,418 21,493 21,568 21,658 21,735 21,775 21,857 15 Finance 5,301 5,340 5,456 5,573 5,593 5,613 5,640 5,662 5,676 5,677 5,692 16 Service 20,547 19,064 19,685 20,162 20,278 20,378 20,449 20,549 20,652 20,692 20,732 17 Government 16,024 15,803 15,747 15,858 15,875 15,873 15,903 15,904 15,873 15,931 15,935 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 • September 1984 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted 1983 Grouping por- avg. tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June July Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.6 151.8 153.8 155.0 155.3 156.2 158.5 160.0 160.8 162.1 162.8 164.3 165.8 2 Products 60.71 149.2 153.2 154.9 155.6 155.8 157.4 159.7 160.4 161.1 162.5 163.3 165.1 166.6 3 Final products 47.82 147.1 150.7 152.1 152.7 153.2 155.2 157.5 158.0 158.6 160.2 161.1 163.0 164.7 4 Consumer goods 27.68 151.7 156.3 157.4 156.9 156.1 157.7 159.5 159.4 160.2 161.4 161.7 162.7 163.9 5 Equipment 20.14 140.8 143.1 144.9 147.0 149.1 151.8 154.9 156.1 156.4 158.5 160.3 163.3 165.8 6 Intermediate products 12.89 156.6 162.2 165.3 166.5 165.5 165.4 167.8 169.0 170.2 171.0 171.6 173.1 173.7 7 Materials 39.29 145.2 149.7 152.3 154.0 154.5 154.5 156.6 159.4 160.4 161.5 162.0 163.0 164.4 Consumer goods 8 Durable consumer goods 7.89 147.5 154.2 157.4 156.7 155.9 158.6 163.4 162.5 163.1 162.2 161.4 163.3 164.8 9 Automotive products 2.83 158.2 168.1 172.9 171.3 171.5 178.4 184.5 182.1 184.1 180.9 179.8 184.1 184.9 10 Autos and utility vehicles 2.03 134.0 147.0 153.1 149.2 149.2 157.8 163.3 162.2 164.1 158.4 155.9 158.7 162.4 11 Autos 1.90 117.4 132.0 135.0 129.6 129.4 137.4 140.7 140.4 142.4 134.5 132.9 136.2 138.7 12 Auto parts and allied goods .80 219.6 221.8 223.1 227.4 228.2 230.7 238.4 232.6 234.7 238.0 240.6 248.6 241.9 13 Home goods 5.06 141.4 146.4 148.7 148.4 147.2 147.5 151.5 151.5 151.3 151.7 151.1 151.6 153.6 14 Appliances, A/C, and TV 1.40 116.4 121.2 125.2 129.2 127.0 126.3 136.4 135.1 134.4 136.1 134.0 133.5 139.8 IS Appliances and TV 1.33 120.1 125.0 129.7 133.3 131.3 130.2 140.0 138.6 138.0 138.8 136.7 136.6 143.6 16 Carpeting and furniture 1.07 178.1 187.5 186.3 185.5 182.7 184.0 183.1 178.7 180.2 181.0 179.6 179.4 179.6 17 Miscellaneous home goods 2.59 139.9 143.2 145.9 143.6 143.4 143.9 146.7 149.1 148.5 148.0 148.6 150.0 150.3 18 Nondurable consumer goods 19.79 153.4 157.1 157.5 157.1 156.1 157.3 157.9 158.2 159.1 161.1 161.8 162.5 163.6 19 Clothing 4.29 20 Consumer staples 15.50 163.7 168.0 168.0 167.2 165.4 166.0 166.5 166.9 168.0 170.2 171.6 172.9 173.8 71 8.33 153.5 156.3 154.9 156.0 154.5 155.4 156.5 156.8 157.6 160 4 161 0 161 9 22 Nonfood staples 7.17 175.4 181.6 183.2 180.3 178.1 178.3 178.2 178.7 180.1 181.6 183.9 185.7 187.1 23 Consumer chemical products .... 2.63 231.0 239.7 241.5 238.7 232.4 229.9 231.6 231.9 231.3 233.4 235.9 240.5 245.9 24 Consumer paper products 1.92 132.7 137.4 138.2 137.6 136.6 137.2 138.8 140.3 141.8 144.0 145.6 147.1 148.6 25 Consumer energy products 2.62 150.9 155.7 157.7 153.0 154.1 156.5 153.4 153.3 156.8 157.1 159.8 159.0 156.2 2266 11..4455 117733..44 117799..99 118822..88 117744..55 117755..88 118855..22 118800..00 117722..88 117777..77 117777..44 118811..11 118822..44 Equipment 27 Business 12.63 153.3 156.6 158.8 161.3 164.1 167.3 170.7 171.9 172.1 173.5 176.5 180.8 184.1 28 Industrial 6.77 120.4 124.3 125.6 126.6 128.6 130.8 133.7 134.6 134.8 135.9 138.5 140.2 141.8 29 Building and mining 1.44 159.3 159.2 160.8 166.9 175.8 185.3 185.1 182.0 175.2 173.6 182.9 185.8 189.0 30 Manufacturing 3.85 107.1 113.3 115.0 114.6 114.3 115.1 119.7 120.9 124.2 126.2 127.4 128.4 129.7 31 Power 1.47 117.1 119.0 118.8 118.5 119.4 118.4 120.0 123.8 122.7 124.1 124.1 126.1 127.3 32 Commercial transit, farm 5.86 191.3 194.0 196.7 201.3 205.1 209.6 213.3 215.1 215.3 217.0 220.5 227.7 232.9 33 Commercial 3.26 273.2 277.4 281.2 288.1 292.5 298.9 303.2 305.9 306.9 309.6 315.5 325.8 331.7 34 Transit 1.93 95.2 95.9 97.6 100.0 103.2 106.0 110.1 110.1 109.2 108.9 109.7 114.0 118.6 35 Farm .67 69.5 70.8 71.0 70.9 73.5 73.5 73.6 75.7 75.0 78.0 77.1 78.0 81.4 36 Defense and space 7.51 119.9 120.2 121.8 122.9 124.0 125.7 128.3 129.5 130.1 133.2 133.1 134.0 135.1 Intermediate products 37 Construction supplies 6.42 142.5 149.0 151.1 152.3 151.6 151.5 155.5 156.6 159.1 159.6 159.5 160.9 161.4 38 Business supplies 6.47 170.7 175.3 179.3 180.6 179.4 179.3 180.1 181.3 181.3 182.3 183.5 185.3 186.0 39 Commercial energy products 1.14 184.3 186.9 190.2 187.0 187.6 188.0 192.1 191.6 187.0 190.0 190.8 195.3 192.2 Materials 40 Durable goods materials 20.35 138.6 144.2 147.2 149.4 150.3 151.3 154.6 158.6 159.5 161.3 161.6 163.0 165.2 41 Durable consumer parts 4.58 113.6 119.9 123.1 124.9 125.0 127.9 131.6 133.1 133.0 133.2 132.6 134.7 136.4 42 Equipment parts 5.44 176.4 183.6 186.0 188.3 192.5 193.4 198.2 204.0 206.7 210.9 210.6 214.0 219.5 43 Durable materials n.e.c 10.34 129.9 134.2 137.4 139.8 139.3 139.5 141.8 146.0 146.3 147.7 148.6 148.6 149.4 44 Basic metal materials 5.57 90.2 93.1 94.5 98.0 97.1 96.9 97.7 103.0 103.0 105.7 104.5 104.0 105.6 45 Nondurable goods materials 10.47 174.5 178.0 183.4 185.3 184.8 180.3 181.2 184.1 185.9 185.7 187.4 187.1 187.6 46 Textile, paper, and chemical materials 7.62 182.6 186.4 192.0 195.4 194.7 189.6 190.5 193.9 195.3 195.0 196.8 196.4 197.4 47 Textile materials 1.85 116.2 121.5 123.1 124.0 121.9 121.3 119.9 119.9 120.6 118.9 121.9 119.6 122.3 48 Paper materials 1.62 158.2 161.8 165.4 166.3 169.8 166.0 167.0 166.8 163.5 166.7 169.2 169.5 170.8 49 Chemical materials 4.15 221.7 225.1 233.1 238.7 237.0 229.3 231.3 237.6 241.1 240.0 241.1 241.3 241.3 50 Containers, nondurable 1.70 167.9 170.6 179.1 175.9 176.6 173.0 173.5 173.0 176.0 175.7 176.6 176.7 175.5 51 Nondurable materials n.e.c 1.14 130.5 133.0 132.6 131.9 130.6 129.5 130.5 135.2 137.7 138.6 140.5 140.7 140.2 52 Energy materials 8.48 124.8 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.3 132.1 131.9 133.1 133.8 53 Primary energy 4.65 114.7 113.9 112.8 114.1 115.5 117.6 119.3 121.3 119.6 119.5 119.8 119.9 122.4 54 Converted fuel materials 3.82 137.0 145.2 142.8 141.2 141.1 145.1 145.8 142.8 145.4 147.3 146.5 149.1 147.7 Supplementary groups 55 Home goods and clothing 9.35 129.9 133.3 135.2 135.5 135.9 137.6 140.1 140.3 140.1 141.0 139.8 139.4 141.2 56 Energy, total 12.23 135.9 139.4 139.0 137.7 138.5 141.1 141.6 141.4 141.9 142.8 143.3 144.4 144.0 57 Products 3.76 161.0 165.2 167.5 163.3 164.3 166.0 165.1 164.9 166.0 167.1 169.2 170.0 167.1 58 Materials 8.48 124.8 128.0 126.4 126.3 127.1 130.0 131.3 131.0 131.3 132.1 131.9 133.1 133.8 NOTE. These data also appear in the Board's G.12.3 (414) release. For address see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A45 2.13 Continued 1967 1983 1984 Grouping c S o I d C e p p r o o r - - 1 a 9 v 8 g 3 . tion Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr June July Aug.' Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 142.9 146.0 146.5 145.8 147.2 151.5 151.4 148.9 150.4 151.3 152.1 154.0 154.4 154.7 2 Mining 6.36 116.6 116.1 117.1 118.3 121.1 123.7 124.8 124.1 123.8 123.3 125.0 126.8 129.5 129.1 3 Utilities 5.69 172.4 179.3 179.3 176.5 176.3 182.5 181.0 176.5 180.0 182.7 182.3 184.4 182.3 183.3 4 Electric 3.88 196.0 205.4 204.5 200.7 200.2 208.0 206.8 200.0 204.6 207.7 206.8 209.7 206.5 207.6 5 Manufacturing 87.95 148.2 152.8 155.1 156.2 156.4 156.8 159.5 161.4 162.1 163.4 164.2 165.6 167.3 167.6 6 Nondurable 35.97 168.1 172.9 174.6 175.6 174.8 173.9 175.2 177.2 177.6 179.1 179.9 180.9 181.8 182.2 7 Durable 51.98 134.5 138.8 141.6 142.8 143.6 145.0 148.6 150.5 151.4 152.6 153.3 154.9 157.3 157.6 Mining 8 Metal 10 .51 80.9 80.9 78.7 81.0 84.6 82.3 89.4 97.4 100.0 98.5 98.0 97.1 99.4 9 Coal 11.12 .69 136.3 141.2 140.5 142.7 144.8 145.2 151.5 163.2 164.0 151.4 153.9 161.5 176.5 172.1 10 Oil and gas extraction 13 4.40 116.6 114.7 116.3 117.3 119.8 123.4 123.1 119.6 118.2 118.8 120.4 121.4 122.3 122.3 11 Stone and earth minerals 14 .75 122.8 125.0 126.5 127.4 132.2 133.9 134.8 133.0 135.8 140.4 144.0 147.1 149.0 Nondurable manufactures 12 Foods 20 8.75 156.4 159.3 158.2 157.6 157.1 157.7 159.4 160.0 161.2 163.1 164.2 165.2 13 Tobacco products 21 .67 112.1 117.1 112.7 109.1 109.5 112.3 116.4 110.9 111.8 113.3 112.8 117.7 14 Textile mill products 22 2.68 140.8 147.4 148.7 148.7 145.8 145.0 143.9 142.3 143.5 140.0 140.5 140.7 141.9 15 Apparel products 23 3.31 16 Paper and products 26 3.21 164.3 168.6 170.4 171.5 172.1 170.1 172.3 176.6 173.8 172.4 174.1 174.6 175.8 175.7 17 Printing and publishing 27 4.72 152.5 157.8 161.7 162.7 162.0 161.7 163.4 164.8 165.2 166.3 167.5 168.8 171.6 172.5 18 Chemicals and products 28 7.74 215.0 220.3 224.1 228.4 225.6 221.1 221.5 224.8 225.0 228.3 227.9 229.0 231.9 19 Petroleum products 29 1.79 120.3 123.2 125.1 123.6 125.4 114.4 118.8 127.6 127.0 126.8 127.9 127.6 125.4 127.6 20 Rubber and plastic products 30 2.24 291.9 306.9 310.9 310.8 309.1 314.4 317.2 318.5 323.8 328.0 334.1 341.0 341.1 21 Leather and products 31 .86 61.9 64.4 64.2 64.0 63.2 66.0 61.4 63.9 63.9 63.5 61.4 59.7 61.4 Durable manufactures 22 Ordnance, private and government 19.91 3.64 95.4 96.8 98.0 98.8 99.3 99.8 99.7 99.6 100.6 101.4 100.8 101.7 101.4 103.4 23 Lumber and products 24 1.64 137.2 141.6 142.3 141.7 141.0 143.8 146.0 145.6 149.3 151.2 146.3 148.5 147.5 24 Furniture and fixtures 25 1.37 170.5 179.0 180.7 181.0 177.5 177.9 183.8 185.6 184.6 186.6 190.5 191.9 193.6 25 Clay, glass, stone products 32 2.74 143.4 147.9 151.7 151.9 152.7 153.8 157.8 160.4 160.2 160.0 160.6 159.5 160.7 26 Primary metals 33 6.57 85.4 87.5 90.6 95.3 92.2 90.4 93.2 98.4 97.5 99.3 98.2 97.6 96.9 94.0 27 Iron and steel 331.2 4.21 71.5 75.1 78.2 84.3 79.2 74.1 80.7 86.0 84.4 84.0 83.5 83.5 80.7 28 Fabricated metal products 34 5.93 120.2 126.0 127.4 26.9 128.5 129.2 131.7 132.8 134.9 135.5 136.5 138.7 139.5 140.3 29 Nonelectrical machinery 35 9.15 150.6 157.3 158.3 159.2 161.8 164.3 169.5 170.9 171.9 174.9 178.8 182.1 185.7 187.7 30 Electrical machinery 36 8.05 185.5 189.2 195.8 198.4 200.1 201.5 206.2 209.9 212.0 214.6 214.5 216.6 222.4 223.8 31 Transportation equipment 37 9.27 117.8 121.1 124.7 125.5 127.3 130.8 134.9 135.2 135.8 134.5 135.0 137.2 140.6 140.0 32 Motor vehicles and parts 371 4.50 137.1 144.3 150.9 150.9 152.9 158.9 166.3 164.4 165.8 161.9 163.0 165.3 169.1 167.6 33 Aerospace and miscellaneous transportation equipment.. 372-9 4.77 99.6 99.2 100.0 101.6 103.2 104.3 105.3 107.7 107.5 108.8 108.6 110.8 113.7 114.0 34 Instruments 38 2.11 158.7 161.6 163.6 163.0 163.0 164.6 167.8 168.6 169.7 171.0 171.8 173.7 175.9 177.3 35 Miscellaneous manufactures 39 1.51 146.2 153.1 151.7 149.1 148.9 149.3 151.1 152.0 152.3 152.1 151.5 149.9 152.3 151.4 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 612.6 626.6 637.0 637.8 638.4 645.4 655.1 656.9 661.8 661.1 665.9 671.3 675.2 674.2 37 Final 390.9 472.6 481.8 489.9 490.7 490.8 497.8 505.3 505.0 509.6 509.0 514.0 517.9 521.0 519.8 38 Consumer goods . 277.5 328.7 336.7 341.6 340.2 338.3 341.9 345.3 345.3 347.7 347.8 349.5 350.8 349.9 346.8 39 Equipment 113.4 144.0 145.1 148.4 150.5 152.5 155.9 160.0 159.7 161.9 161.2 164.4 167.1 171.1 172.9 40 Intermediate 116.6 140.0 144.8 147.1 147.1 147.6 147.6 149.8 151.9 152.2 152.2 151.9 153.4 154.2 154.5 1. 1972 dollar value. NOTE. These data also appear in the Board's G.12.3 (414) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • September 1984 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1983 1984 IItteemm 11998811 11998822 11998833 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May' June' July Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 986 1,001 1,605 1,650 1,649 1,602 1,799 1,902 1,727 1,758 1,745 1,768 1,562 2 1-family 564 546 902 905 919 913 989 1,083 974 957 913 916 813 3 2-or-more-family 421 454 703 745 730 689 810 819 753 801 832 852 749 4 Started 1,084 1,062 1,703 1,672 1,730 1,694 1,980 2,262 1,662 2,015 1,794 1,886 1,761 5 1-family 705 663 1,068 1,017 1,074 1,021 1,301 1,463 1,071 1,196 1,131 1,092 982 6 2-or-more-family 379 400 636 655 656 673 679 799 591 819 663 794 779 7 Under construction, end of period1 682 720 1,003 994 1,011 1,020 1,032 1,033 1,065 1,091' 1,099 1,116 t 8 1-family 382 400 524 542 543 542 552 557 571 582' 591 596 9 2-or-more-family 301 320 479 452 468 478 480 477 494 509' 509 520 1 10 Completed 1,266 1,006 1,391 1,567 1,445 1,489 1,606 1,565 1,590 1,654' 1,730 1,711 1 1 1 2 2 1 - o fa rm m il o y r e-family 8 44 1 7 8 6 3 3 7 1 4 9 4 2 6 4 6 1,0 5 2 3 8 9 9 45 9 1 4 9 5 8 0 6 3 1,0 5 1 9 4 2 1, 5 03 3 4 1 1,0 5 3 5 1 9 9 68 7 < 4 y ' 1, 6 0 5 7 2 8 1, 6 0 8 2 4 7 n1.1a. 13 Mobile homes shipped 241 240 295 308 313 310 314 293 287 287 295 301 Merchant builder activity in 1-family units 14 Number sold 436 413 622 624 636 755 681 712 682 649' 615 630 630 15 Number for sale, end of period1 278 255 303 301 304 300 302 303 320 328' 333 340 342 Price (thousands of dollars)2 Median 16 Units sold 68.8 69.3 75.5 75.9 75.9 75.9 76.2 79.2 78.4 79.6 81.6 79.9 80.3 Average 17 Units sold 83.1 83.8 89.9 89.5 91.4 91.7 92.2 94.4 97.7 96.2 102.4 97.8 95.6 EXISTING UNITS (1-family) 18 Number sold 2,418 1,991 2,719 2,720 2,700 2,850 2,890 2,910 3,020 3,090 3,060 2,960 2,780 Price of units sold (thousands of dollars)2 19 Median 66.1 67.7 69.8 69.8 70.4 69.9 71.3 71.8 72.2 72.5 73.1 73.8 74.7 20 Average 78.0 80.4 82.5 83.0 83.4 82.9 84.8 84.9 85.1 86.1 86.2 87.7 88.6 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 239,112 230,068 262,167 267,930 267,017 263,867 280,897 300,355 309,744 305,262 311,037 309,267 311,358 22 Private 185,761 179,090 211,369 219,164 217,444 213,272 229,972 248,104 254,958 250,696 255,467 251,628 254,346 23 Residential 86,564 74,808 111,727 118,605 113,455 109,706 121,931 137,403 141,087 133,694 133,919 130,947 133,299 24 Nonresidential, total 99,197 104,282 99,642 100,559 103,989 103,566 108,041 110,701 113,871 117,002 121,548 120,681 121,047 Buildings 25 Industrial 17,031 17,346 12,863 10,363 11,632 12,208 12,872 13,969 14,363 13,734 14,969 14,143 14,171 26 Commercial 34,243 37,281 35,787 37,441 38,132 37,364 41,057 42,076 45,280 47,501 49,597 49,166 49,904 27 Other 9,543 10,507 11,660 12,243 12,028 11,854 12,742 12,999 13,190 13,384 13,870 13,481 13,341 28 Public utilities and other 38,380 39,148 39,332 40,512 42,197 42,140 41,370 41,657 41,038 42,383 43,112 43,891 43,631 29 Public 53,346 50,977 50,798 48,766 49,573 50,596 50,925 52,251 54,786 54,566 55,571 57,639 57,013 30 Military 1,966 2,205 2,544 2,590 3,064 2,898 2,608 2,474 2,872 3,020 2,847 2,906 2,507 31 Highway 13,599 13,428 14,225 14,397 14,059 14,666 14,240 14,993 16,205 16,734 16,949 16,865 17,318 32 Conservation and development 5,300 5,029 4,822 4,041 3,916 4,984 4,319 4,608 4,531 4,516 4,344 4,498 4,475 33 Other 32,481 30,315 29,207 27,738 28,534 28,048 29,758 30,176 31,178 30,296 31,431 33,370 32,713 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 ro a m rli e 1 r 2 Change ( a f t r o a m nn 3 u a m l o ra n t t e h ) s earlier Change from 1 month earlier Index level July Item 1983 1984 1984 1984 11998833 11998844 (1967 JJuullyy JJuullyy = 100)1 Sept. Dec. Mar/ June' Mar/ Apr/ May June July CONSUMER PRICES2 1 2.4 4.1 4.5 4.0 5.0 3.3 .2 .5 .2 .2 .3 311.7 T 1.2 3.8 1.1 4.3 9.0 -.7 -.1 .0 -.3 .1 .3 303.2 3 1.3 -.4 3.4 -1.7 -1.4 .8 -.2 .7 .2 -.7 -.3 428.3 4 2.9 5.1 5.9 4.9 5.1 4.7 .4 .5 .3 .3 .4 301.3 5f5ftt 44 11 .. .. 11 88 4 5 . . 2 6 6 5 . . 8 2 4 5 . . 6 2 5 3. . 4 9 3 5 . . 7 4 . . 4 4 . . 6 5 . . 2 4 . . 4 1 . . 2 6 2 3 5 5 3 6 . . 0 8 PRODUCER PRICES 7 1.4 2.4 2.0 1.1 5.7 .0 .4 .1 .0 .0 .3 292.6 8 .0 5.7 2.5 5.8 16.9 -8.5 .7 -.5 -1.2 -.6 1.4 275.6 9 -4.9 -4.3 -1.3 -10.4 -8.1 9.6 -1.2 .9 1.5 -.2 -1.7 760.2 111000 3.4 2.4 2.7 1.5 4.5 1.3 .7 .0 .1 .3 .2 246.4 111111 22..55 2.6 2.1 1.8 3.8 2.8 .3 .4 .2 .0 .2 294.8 111222 .6 2.7 4.0 2.5 2.9 3.4 .5 .0 .3 .5 -.1 326.7 111333 22..00 3.0 3.6 4.1 3.8 1.9 .6 .0 .1 .3 .0 304.1 Crude materials 11114444 -2.8 6.3 15.6 12.1 12.5 -21.3 4.0 -.9 -2.7 -2.3 .4 264.0 11115555 -1.6 .6 -1.7 -2.3 -1.6 4.2 -.8 .5 .4 .2 .3 790.8 11116666 Other 8.2 5.5 16.6 2.4 -9.7 30.6 .1 3.0 2.6 1.2 -1.6 265.7 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers and reflect a animal feeds. rental equivalence measure of homeownership after 1982. . . SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • September 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 Q2 Q3 Q4 Ql Q2r GROSS NATIONAL PRODUCT 1 Total 2,957.8 3,069.2 3,304.8 3,267.0 3,346.6 3,431.7 3,553.3 3,648.1 By source 2 Personal consumption expenditures 1,849.1 1,984.9 2,155.9 2,141.6 2,181.4 2,230.2 2,276.5 2,329.5 3 Durable goods 235.4 245.1 279.8 276.1 284.1 299.8 310.9 320.3 4 Nondurable goods 730.7 757.5 801.7 796.9 811.7 823.0 841.3 858.2 5 Services 883.0 982.2 1,074.4 1,068.6 1,085.7 1,107.5 1,124.4 1,151.0 6 Gross private domestic investment 484.2 414.9 471.6 449.6 491.9 540.0 623.8 626.4 7 Fixed investment 458.1 441.0 485.1 469.0 496.2 527.3 550.0 577.9 8 Nonresidential 353.9 349.6 352.9 339.3 353.9 383.9 398.8 422.1 9 Structures 135.3 142.1 129.7 125.6 126.2 136.6 142.2 151.2 10 Producers' durable equipment 218.6 207.5 223.2 213.6 227.8 247.3 256.7 271.0 11 Residential structures 104.2 91.4 132.2 129.8 142.3 143.4 151.2 155.7 12 Nonfarm 99.8 86.6 127.6 125.3 137.7 138.7 146.4 150.6 13 Change in business inventories 26.0 -26.1 -13.5 -19.4 -4.3 12.7 73.8 48.5 14 Nonfarm 18.2 -24.0 -3.1 -5.4 11.6 14.1 60.6 44.7 15 Net exports of goods and services 28.0 19.0 -8.3 -6.5 -16.4 -29.8 -51.5 -54.6 16 Exports 369.9 348.4 336.2 328.1 342.0 346.1 358.9 366.9 17 Imports 341.9 329.4 344.4 334.5 358.4 375.9 410.4 421.6 18 Government purchases of goods and services 596.5 650.5 685.5 682.2 689.8 691.4 704.4 746.8 19 Federal 228.9 259.0 269.7 270.5 269.2 266.3 267.6 299.3 20 State and local 367.6 391.5 415.8 411.6 420.6 425.1 436.8 447.5 By major type of product 21 Final sales, total 2,931.7 3,095.4 3,318.3 3,286.4 3,350.9 3,419.0 3,479.5 3,599.6 22 Goods 1,294.8 1,276.8 1,355.7 1,337.2 1,373.1 1,423.9 1,498.0 1,542.8 23 Durable 530.4 499.9 555.3 541.1 576.9 607.4 632.3 645.1 24 Nondurable 764.4 776.9 800.4 796.1 796.2 816.5 865.7 897.7 25 Services 1,373.0 1,510.8 1,639.3 1,627.2 1,654.5 1,681.3 1,713.7 1,746.5 26 Structures 289.9 281.7 309.8 302.6 319.0 326.5 341.6 358.7 27 Change in business inventories 26.0 -26.1 -13.5 -19.4 -4.3 12.7 73.8 48.5 28 Durable goods 7.3 -18.0 -2.1 -5.5 12.5 14.5 34.9 16.1 29 Nondurable goods 18.8 -8.1 -11.3 -13.9 -16.8 -1.7 38.9 32.4 30 MEMO: Total GNP in 1972 dollars 1,512.2 1,480.0 1,534.7 1,524.8 1,550.2 1,572.7 1,610.9 1,640.8 NATIONAL INCOME 31 2,363.8 2,446.8 2,646.7 2,609.0 2,684.4 2,766.5 2,873.5 2,943.0 32 Compensation of employees 1,765.4 1,864.2 1,985.0 1,962.4 2,000.7 2,055.4 2,113.4 2,158.9 ii Wages and salaries 1,493.2 1,568.7 1,658.8 1,640.8 1,670.8 1,715.4 1,755.9 1,793.1 34 Government and government enterprises 284.6 306.6 328.2 325.0 330.6 335.0 342.9 347.5 35 Other 1,208.6 1,262.2 1,331.1 1,315.9 1,340.3 1,380.4 1,413.0 1,445.6 36 Supplement to wages and salaries 272.2 295.5 326.2 321.6 329.9 340.0 357.4 365.7 37 Employer contributions for social insurance 132.3 140.0 153.1 151.7 153.9 157.9 169.4 172.2 38 Other labor income 140.0 155.5 173.1 169.9 175.9 182.1 188.1 193.5 39 Proprietors' income1 125.1 111.1 121.7 116.9 123.3 131.9 154.9 149.9 40 Business and professional' 93.6 89.2 107.9 106.8 112.1 114.6 122.5 126.3 41 Farm' 31.5 21.8 13.8 10.1 11.2 17.3 32.5 23.6 42 Rental income of persons2 42.3 51.5 58.3 59.0 56.2 60.4 61.0 61.6 43 Corporate profits' 189.9 159.1 225.2 216.7 245.0 260.0 277.4 291.4 44 Profits before tax3 221.2 165.5 203.2 198.2 227.4 225.5 243.3 246.7 45 Inventory valuation adjustment -23.6 -9.5 -11.2 -12.1 -19.3 -9.2 -13.5 -7.4 46 Capital consumption adjustment -7.6 3.1 33.2 30.6 36.9 43.6 47.6 52.1 47 Net interest 241.0 260.9 256.6 254.2 259.2 258.9 266.8 281.2 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 Q2 Q3 Q4 Q1 Q2R PERSONAL INCOME AND SAVING 1 Total personal income 2,429.5 2,584.6 2,744.2 2,714.4 2,763.3 2,836.5 2,920.5 2,982.3 2 Wage and salary disbursements 1,493.1 1,568.7 1,659.2 1,642.1 1,671.3 1,715.4 1,755.7 1,792.9 Commodity-producing industries 509.3 509.3 519.3 511.4 523.5 539.0 555.9 567.1 4 Manufacturing 385.6 382.9 395.2 389.3 399.1 411.9 424.6 432.3 5 Distributive industries 361.6 378.6 398.6 395.4 399.7 413.2 419.2 429.2 6 Service industries 337.7 374.3 413.1 409.1 417.0 428.2 437.9 449.3 7 Government and government enterprises 284.6 306.6 328.2 326.2 331.0 335.0 342.8 347.3 8 Other labor income 140.0 155.5 173.1 169.9 175.9 182.1 188.1 193.5 9 Proprietors' income1 125.1 111.1 121.7 116.9 123.3 131.9 154.9 149.9 10 Business and professional1 93.6 89.2 107.9 106.8 112.1 114.6 122.5 126.3 11 31.5 21.8 13.8 10.1 11.2 17.3 32.5 23.6 1? Rental income of persons2 42.3 51.5 58.3 59.0 56.2 60.4 61.0 61.6 N Dividends 64.3 66.5 70.3 69.1 70.7 72.8 75.0 77.2 14 Personal interest income 331.8 366.6 376.3 368.8 382.3 388.2 403.9 423.3 15 Transfer payments 337.2 376.0 405.0 407.3 403.9 408.8 411.3 415.7 16 Old-age survivors, disability, and health insurance benefits... 182.0 204.5 221.6 219.8 222.4 227.7 232.1 235.2 17 LESS: Personal contributions for social insurance 104.5 111.4 119.6 118.5 120.4 123.2 129.6 131.7 18 EQUALS: Personal income 2,429.5 2,584.6 2,744.2 2,714.4 2,763.3 2,836.5 2,920.5 2,982.3 19 LESS: Personal tax and nontax payments 387.7 404.1 404.2 411.6 395.8 407.9 418.3 430.3 20 EQUALS: Disposable personal income 2,041.7 2,180.5 2,340.1 2,302.9 2,367.4 2,428.6 2,502.2 2,552.0 21 LESS: Personal outlays 1,904.4 2,044.5 2,222.0 2,206.1 2,248.4 2,300.0 2,349.6 2,406.4 22 EQUALS: Personal saving 137.4 136.0 118.1 96.7 119.0 128.7 152.5 145.6 MEMO Per capita (1972 dollars) 73 Gross national product 6,572.8 6,369.6 6,543.4 6,509.8 6,601.9 6,681.4 6,829.4 6,941.8 24 Personal consumption expenditures 4,131.4 4,145.9 4,302.8 4,295.8 4,325.2 4,386.0 4,426.5 4,497.7 25 Disposable personal income 4,561.0 4,555.0 4,670.0 4,619.0 4,694.0 4,776.0 4,865.0 4,927.0 26 Saving rate (percent) 6.7 6.2 5.0 4.2 5.0 5.3 6.1 5.7 GROSS SAVING 27 Gross saving 484.3 408.8 437.2 414.7 455.2 485.7 543.9 550.1 78 Gross private saving 509.9 524.0 571.7 538.1 588.6 615.0 651.3 663.2 79 Personal saving 137.4 136.0 118.1 96.7 119.0 128.7 152.5 145.6 30 Undistributed corporate profits1 42.3 29.2 76.5 70.2 86.9 100.0 107.0 117.7 31 Corporate inventory valuation adjustment -23.6 -9.5 -11.2 -12.1 -19.3 -9.2 -13.5 -7.4 Capital consumption allowances 3? Corporate 202.6 222211..88 231.2 222288..22 233.4 223366..44 223399..99 224433..44 33 Noncorporate 127.6 137.1 145.9 143.0 149.4 150.0 151.8 156.4 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts -26.7 -115.2 -134.5 -123.4 -133.5 -129.3 -107.4 -113.1 36 Federal -64.3 -148.2 -178.6 -167.3 -180.9 -180.5 -161.3 -166.9 37 State and local 37.6 32.9 44.1 43.9 47.4 51.2 53.9 53.9 38 Capital grants received by the United States, net 1.1 .0 .0 .0 .0 .0 .0 .0 39 Gross investment 490.0 408.3 437.7 418.7 450.3 480.9 546.1 545.7 40 Gross private domestic 484.2 414.9 471.6 449.6 491.9 540.0 623.8 626.4 41 Net foreign 5.8 -6.6 -33.9 -30.9 -41.5 -59.1 -77.7 -80.6 42 Statistical discrepancy 5.6 -.5 .5 4.1 -4.8 -4.8 2.2 -4.4 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • September 1984 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1983 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 --22,,994433 --99,,556600 --1111,,884466 --1177,,221133 --1199,,440088 --22,,333322 --88,,776699 --1144,,449988 --1155,,996644 --1188,,336600 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. 1984 IItteemm 11998811 11998822 11998833 Jan. Feb. Mar. Apr. May June July 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 233,677 212,193 200,486 18,326 17,212 17,727 17,521 17,950 17,633 19,442 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 261,305 243,952 258,048 26,586 26,147 26,771 28,368 25,569 25,356 31,883 3 Trade balance -27,628 -31,759 -57,562 -8,260 -8,935 -9,044 -10,846 -7,619 -7,723 -12,440 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 1984 TTyyppee 11998811 11998822 11998833 Feb. Mar. Apr. May June July Aug. 1 Total 30,075 33,958 33,747 34,820 34,975 34,585 34,713 34,547 34,392 34,771 2 Gold stock, including Exchange Stabilization Fund1 11,151 11,148 11,121 11,116 11,111 11,107 11,104 11,100 11,099 11,098 3 Special drawing rights2 3 4,095 5,250 5,025 5,320 5,341 5,266 5,513 5,459 5,453 5,652 4 Reserve position in International Monetary Fund2 5,055 7,348 11,312 11,707 11,706 11,618 11,666 11,659 11,735 11,831 5 Foreign currencies4 9,774 10,212 6,289 6,677 6,817 6,594 6,430 6,329 6,105 6,190 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 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position in 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 1984 AAsssseettss 11998811 11998822 11998833 Feb. Mar. Apr. May June July Aug. 1 Deposits 505 328 190 246 222 345 295 238 215 242 Assets held in custody 2 U.S. Treasury securities1 104,680 112,544 117,670 119,499 116,768 117,808 114,562 117,143 115,760 117,130 3 Earmarked gold2 14,804 14,716 14,414 14,291 14,278 14,278 14,268 14,266 14,270 14,258 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 • September 1984 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1983 1984 AAsssseett aaccccoouunntt 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May June? All foreign countries 1 Total, all currencies. 401,135 462,847 469,712 476,539 457,936 465,498 480,629 474,103 484,888' 476,726 2 Claims on United States 28,460 63,743 91,805 115,065 112,237 112,778 121,813 120,834 125,659 124,932 3 Parent bank 20,202 43,267 61,666 81,113 77,697 79,429 86,379 85,150 88,863 89,705 4 5 O N t o h n e b r a b n a k n s k 1 s in United States1 . j 8,258 20,476 30,139 33,952 34,540 33,349 35.434 35,684 36,796 22 11 00 44 ,, ,, 88 33 88 44 55 22 6 Claims on foreigners 354,960 378,954 358,493 342,609 326,312 332,383 338,726 333,187 338,641' 333311,,882200 7 Other branches of parent bank . 77,019 87,821 91,168 92,718 85,985 85,754 90,703 92,842 95,095 9955,,777733 8 Banks 146,448 150,763 133,752 117,593 107,633 110,848 114,200 107,048 112,182' 110044,,999988 9 Public borrowers 28,033 28,197 24,131 24,508 25,288 25,719 24,775 24,753 24,401' 2233,,449977 10 Nonbank foreigners 103,460 112,173 109,442 107,790 107,406 110,062 109,048 108,544 106,965' 110077,,555522 11 Other assets 17,715 20,150 19,414 18,865 19,387 20,337 20,090 20,082 20,588' 19,974 12 Total payable in U.S. dollars . 291,798 350,735 361,982 370,958 349,408 350,306 364,591 358,606 371,601' 366,947 13 Claims on United States 27,191 62,142 90,085 112,959 110,139 110,543 119,436 118,355 123.284 122,737 14 Parent bank 19,896 42,721 61,010 80,018 76,550 78,200 85,067 83,729 87,683 88,593 1 1 5 6 N Ot o h n e b r a b n a k n s k 1 s in United States1 . | 7,295 19,421 29,075 32.941 33,589 32,343 34,369 34,626 35,601 2 1 0 4 , , 0 1 4 0 4 0 17 Claims on foreigners 255,391 276,937 259,871 247.327 228,647 229,241 235,215 229,872 237,472' 233,654 18 Other branches of parent bank . 58,541 69,398 73,537 75.207 68,113 66,792 70,940 70,100 75,503 77,326 19 Banks 117,342 122,110 106,447 93,257 82,551 84,230 87,764 82,702 86,123' 80,675 20 Public borrowers 23,491 22,877 18,413 17,88! 17,880 18,127 18,104 17,935 17,669 17,067 21 Nonbank foreigners 56,017 62,552 61,474 60,982 60,103 60,092 58,407 59,135 58,177 58,586 22 Other assets . 9,216 11,656 12,026 10.672 10,622 10,522 9,940 10,379 10.845' 10,556 United Kingdom 23 Total, all currencies. 144,717 157,229 161,067 158,732 155,096 157,972 161,007 161,109 159,059 158,724 24 Claims on United States 7,509 11,823 27,354 34,433 36,603 36,646 38,072 38,428 36,148 36,309 25 Parent bank 5,275 7,885 23,017 29,111 30,728 30,875 32,201 32,855 30,266 30,621 2 2 6 7 O N t o h n e b r a b n a k n s k 1 s in United States1 . | 2,234 3,938 4,337 5.322 5,875 5,771 5,871 5,573 5,882 4 1 , , 4 2 6 2 5 3 28 Claims on foreigners 131,142 138,888 127,734 119,280 113,316 116,055 118,200 117,713 117,808 117,212 29 Other branches of parent bank . 34,760 41,367 37,000 36,565 33,871 33,296 34,617 38,571 36.804 38,518 30 Banks 58,741 56,315 50,767 43,352 40,119 42,300 43,804 39,779 42,084 39,892 31 Public borrowers 6,688 7,490 6,240 5,898 6,063 6,213 6,076 6,072 5,992 5,876 32 Nonbank foreigners 30,953 33,716 33,727 33,465 33,263 34,246 33,703 33,291 32,928 32,926 33 Other assets 6,066 6,518 5,979 5,019 5,177 5,271 4,735 4,968 5,103 5,203 34 Total payable in U.S. dollars . 99,699 115,188 123,740 126,012 121,195 121,944 124,501 123,174 122,215 123,628 35 Claims on United States 7,116 11,246 26,761 33.756 35,886 35,934 37,282 37,598 35,210 35,358 36 Parent bank 5,229 7,721 22,756 28,756 30,383 30,515 31,789 32,453 29,876 30,181 3 3 7 8 N Ot o h n e b r a b n a k n s k 1 s in United States' . | 1,887 3,525 4,005 5,000 5,503 5,419 5,493 5,145 5,334 4 1 , , 0 1 6 1 2 5 39 Claims on foreigners 89,723 99,850 92,228 88,917 82,190 83,067 84,599 82,769 83,925 85,176 40 Other branches of parent bank . 28,268 35,439 31,648 31,838 28,770 28,103 28,723 29,247 30,278 32,765 41 Banks 42,073 40,703 36,717 32,188 28,749 30,158 31,613 29,135 30,036 28,610 42 Public borrowers 4,911 5,595 4,329 4,194 4,356 4,414 4,390 4,408 4,296 4,284 43 Nonbank foreigners 14,471 18,113 19,534 20,697 20,315 20,392 19,873 19,979 19,315 19,517 44 Other assets . 2,860 4,092 4,751 3,339 3,119 2,943 2,620 2,807 3,080 3,094 Bahamas and Caymans 45 Total, all currencies. 123,837 149,108 145,156 151,532 141,573 140,198 149,164 144,502 155,805 153,038 46 Claims on United States 17,751 46,546 59,403 74.832 70,729 70,706 77,807 75,443 83,311 81,301 47 Parent bank 12,631 31,643 34,653 47,807 43,444 44,474 50,146 47,566 54,122 53,651 4 4 9 8 N Ot o h n e b r a b n a k n s1 k s in United States1 . ) 5,120 14,903 24,750 27.025 27,285 26,232 27,661 27,877 29,189 1 1 5 2 , , 6 04 0 9 1 50 Claims on foreigners 101,926 98,057 81,450 72.788 66,926 65,609 67,422 65,152 68,440 67,905 51 Other branches of parent bank . 13,342 12,951 18,720 17,340 15,989 14,657 15,265 14,811 16,931 18.057 52 Banks 54,861 55,151 42,699 36,767 32,451 32,525 34,295 32,231 33,237 31,349 53 Public borrowers 12,577 10,010 6,413 6,084 5,992 5,956 6,028 5,983 5,920 5,996 54 Nonbank foreigners 21,146 19,945 13,618 12,597 12,494 12,471 11,834 12,127 12,352 12,503 55 Other assets 4,160 4,505 4,303 3,912 3,918 3,883 3,935 3,907 4,054 3,832 56 Total payable in U.S. dollars . 117,654 143,743 139,605 145,091 135,166 133,836 142,677 138,102 149,340 146,880 1. Data for assets vis-a-vis other banks in the United States and vis-a-vis nonbanks are combined for dates prior to June 1984. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A53 3.14 Continued 1983 1984 LLiiaabbiilliittyy aaccccoouunntt 11998800 11998811 11998822 Dec. Jan. Feb. Mar. Apr. May JuneP All foreign countries 57 Total, all currencies 401,135 462,847 469,712 476,539 457,936 465,498 480,629 474,103 484,888' 476,726 58 Negotiable CDs2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43,704 59 To United States 91,079 137,767 179,015 187,602 181,735 184,482 187,436' 183,691 190,245' 161,531 60 Parent bank 39,286 56,344 75,621 80,537 79,136 81,112 75,307' 75,282 80,027 80,819 61 Other banks in United States 14,473 19,197 33,405 29,107 26,660 25,678 28,694' 26,810 27,451 21,618 62 Nonbanks 37,275 62,226 69,989 77,958 75,939 77,692 81,435 81,599 82,767' 59,094 63 To foreigners 295,411 305,630 270,853 269,602 257,155 261,522 273,159' 270,242 274,840' 251,916 64 Other branches of parent bank 75,773 86,396 90,191 89,055 81,793 81,684 87,229 90,937 92,254 92,572 65 Banks 132,116 124,906 96,860 92,882 86,961 89,538 95,690 90,166 94,041' 83,026 66 Official institutions 32,473 25,997 19,614 18,893 19,702 20,549 18,250 17,882 19,608 19,083 67 Nonbank foreigners 55,049 68,331 64,188 68,772 68,699 69,751 71,982 71,257 68,937' 57,235 68 Other liabilities 14,690 19,450 19,844 19,335 19,046 19,494 20,034 20,170 19,803' 19,575 69 Total payable in U.S. dollars 303,281 364,447 379,270 387,740 367,557 369,156 381,976 374,664 389,683 384,274 70 Negotiable CDs2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 41,135 71 To United States 88,157 134,700 175,528 183,837 177,864 180,161 183,148 179,389 185,966 156,988 72 Parent bank 37,528 54,492 73,295 78,328 76,778 78,512 74,724' 72,856 77,568 78,132 73 Other banks in United States 14,203 18,883 33,040 28,573 26,166 25,111 28,108' 26,223 26,798 21,024 74 Nonbanks 36,426 61,325 69,193 76,936 74,920 76,538 80,316 80,310 81,600 57,832 75 To foreigners 206,883 217,602 192,510 194,056 180,676 179,884 189,612 185,165 193,763 176,282 76 Other branches of parent bank 58,172 69,299 72,921 72,002 64,830 63,480 68,557 69,096 73,380 74,548 77 Banks 87,497 79,594 57,463 57,015 50,583 50,683 56,202 50,874 54,932 46,992 78 Official institutions 24,697 20,288 15,055 13,852 14,673 15,835 13,161 13,347 14,835 13,799 79 Nonbank foreigners 36,517 48,421 47,071 51,187 50,590 49,886 51,692 51,848 50,616 40,943 80 Other liabilities 8,241 12,145 11,232 9,847 9,017 9,111 9,216 10,110 9,954 9,869 United Kingdom 81 Total, all currencies 144,717 157,229 161,067 158,732 155,0% 157,972 161,007 161,109 159,059 158,724 82 Negotiable CDs2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 39,520 83 To United States 21,785 38,022 53,954 55,799 55,618 56,550 56,228 56,526 55,353 32,079 84 Parent bank 4,225 5,444 13,091 14,021 17,075 18.307 15,850 16,311 17,820 18,532 85 Other banks in United States 5,716 7,502 12,205 11,328 10,640 10,570 11,440 10,542 9,487 4,712 86 Nonbanks 11,844 25,076 28,658 30,450 27,903 27,673 28,938 29,673 28,046 8,835 87 To foreigners 117,438 112,255 99,567 95,847 92,268 93,734 97,109 97,064 96,339 79,678 88 Other branches of parent bank 15,384 16,545 18,361 19,038 18,526 17,741 21,477 21,939 20,617 21,668 89 Banks 56,262 51,336 44,020 41,624 38,812 39,548 42,073 40,751 41,597 32,950 90 Official institutions 21,412 16,517 11,504 10,151 10,530 11,531 8,833 9,403 10,377 9,533 91 Nonbank foreigners 24,380 27,857 25,682 25,034 24,400 24,914 24,726 24,971 23,748 15,527 92 Other liabilities 5,494 6,952 7,546 7,086 7,210 7,688 7,670 7,519 7,367 7,447 93 Total payable in U.S. dollars 103,440 120,277 130,261 131,167 126,987 127,622 130,985 128,369 128,255 128,612 94 Negotiable CDs2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 38,143 95 To United States 21,080 37,332 53,029 54,691 54,535 55,105 55,031 55,201 54,094 30,733 96 Parent bank 4,078 5,350 12,814 13,839 16,838 17,900 15,606 16,127 17,624 18,244 97 Other banks in United States 5,626 7,249 12,026 11,044 10,406 10,247 11,204 10,292 9,200 4,497 98 Nonbanks 11,376 24,733 28,189 29,808 27,291 26,958 28,221 28,782 27,270 7,992 99 To foreigners 79,636 79,034 73,477 73,279 69,557 69,438 72,892 69,739 70,764 56,153 100 Other branches of parent bank 10,474 12,048 14,300 15,403 14,758 13,956 17,559 14,801 15,733 17,646 101 Banks 35,388 32,298 28,810 29,320 26,386 26,229 28,833 27,286 27,308 19,574 102 Official institutions 17,024 13,612 9,668 8,279 8,594 9,777 6,910 7,650 8,760 7,639 103 Nonbank foreigners 16,750 21,076 20,699 20,277 19,819 19,476 19,590 20,002 18,963 11,294 104 Other liabilities 2,724 3,911 3,755 3,197 2,895 3,079 3,062 3,429 3,397 3,583 Bahamas and Caymans 105 Total, all currencies 123,837 149,108 145,156 151,532 141,573 140,198 149,164 144,502 155,805 153,038 106 Negotiable CDs2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,668 107 To United States 59,666 85,759 104,425 110,831 104,170 104,552 109,975 106,672 113,920 109,505 108 Parent bank 28,181 39,451 47,081 50,256 44,734 44,186 45,227 43,211 45,987 45,457 109 Other banks in United States 7,379 10,474 18,466 15,711 14,401 13,578 15,636 14,867 16,530 15,450 110 Nonbanks 24,106 35,834 38,878 44,864 45,035 46,788 49,112 48,594 51,403 48,598 111 To foreigners 61,218 60,012 38,274 38,362 35,163 33,409 36,836 35,502 39,390 39,313 112 Other branches of parent bank 17,040 20,641 15,796 13,376 12,253 11,790 11,987 12,858 14,031 13,771 113 Banks 29,895 23,202 10,166 11,869 9,883 9,351 11,405 9,859 12,106 12,496 114 Official institutions 4,361 3,498 1,967 1,916 2,309 1,870 2,395 1,869 2,197 2,662 115 Nonbank foreigners 9,922 12,671 10,345 11,201 10,718 10,398 11,049 10,916 11,056 10,384 116 Other liabilities 2,953 3,337 2,457 2,339 2,240 2,237 2,353 2,328 2,495 2,552 117 Total payable in U.S. dollars 119,657 145,284 141,908 147,727 137,709 136,517 145,128 140,261 151,664 148,964 2. Before June 1984, liabilities on negotiable CDs were included in liabilities to the United States or liabilities to foreigners, according to the address of the initial purchaser. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • September 1984 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1984 IItteemm 11998822 11998833 Jan. Feb. Mar. Apr. Mayr June July? 1 Total1 172,718 177,922 176,232 176,461 174,906 175,319 171,932 173,979 174,627 By type 2 Liabilities reported by banks in the United States2 24,989 25,503 22,768 23,169 23,373 23,834 23,124 23,592 25,666 3 U.S. Treasury bills and certificates3 46,658 54,341 55,327 56,084 53,681 53,171 51,035 53,977 52,003 U.S. Treasury bonds and notes 4 Marketable 67,733 68,514 69,053 69,061 69,545 70,167 69,809 68,936 69,146 5 Nonmarketable4 8,750 7,250 7,250 6,600 6,600 6,600 6,600 6,600 6,600 6 U.S. securities other than U.S. Treasury securities5 24,588 22,314 21,823 21,907 21,707 21,547 21,364 20,874 21,212 By area 7 Western Europe1 61,298 67,645 66,185 67,903 67,714 69,928 69,898 70,029 68,427 8 Canada 2,070 2,438 2,511 2,329 1,944 1,557 1,247 994 1,250 9 Latin America and Caribbean 6,057 6,248 6,443 7,605 6,460 7,468 6,474 7,073 7,417 10 Asia 96,034 92,544 92,185 90,547 90,610 88,517 86,505 88,411 90,435 11 Africa 1,350 958 1,051 1,067 1,038 941 1,179 996 956 12 Other countries6 5,909 8,089 7,846 7,370 7,140 6,908 6,629 6,476 6,142 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 Sept. Dec. Mar. JuneP 1 Banks' own liabilities 3,748 3,523 4,844 5,976 5,310 6,168 6,402 2 Banks' own claims 4,206 4,980 7,707 7,998 7,231 8,992 9,622 3 Deposits 2,507 3,398 4,251 3,045 2,731 4,000 4,280 4 Other claims 1,699 1,582 3,456 4,953 4,501 4,992 5,342 5 Claims of banks' domestic customers1 962 971 676 717 1,059 361 227 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 1984 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11998811AA 11998822 11998833 Jan. Feb. Mar. Apr. May June July P 1 All foreigners 243,889 307,056 369,560 358,958 368,902 377,173 379,806 393,784' 400,516 393,844 2 Banks' own liabilities 163,817 227,089 278,977 264,951 271,858 284,926 286,601 301,382r 303,788 298,367 3 Demand deposits 19,631 15,889 17,602 16,124 16,639 17,466 17,162 17,200' 17,630 16,352 4 Time deposits' 29,039 68,035 89,977 87,846 91,220 96,462 96,629 103,403r 105,207 108,002 Other2 17,647 23,946 26,406 23,277 24,012 24,485 24,082 23,733 23,085 25,176 6 Own foreign offices3 97,500 119,219 144,993 137,703 139,988 146,513 148,728 157,047' 157,866 148,837 7 Banks' custody liabilities4 80,072 79,967 90,582 94,007 97,043 92,247 93,205 92,402 96,728 95,477 8 U.S. Treasury bills and certificates5 55,315 55,628 68,669 71,083 74,277 69,666 69,893 68,511 72,191 71,158 9 Other negotiable and readily transferable instruments6 18,788 20,636 17,529 18,063 17,864 18,075 18,703 18,780 19,533 19,328 10 Other 5,970 3,702 4,385 4,862 4,903 4,506 4,608 5,112 5,003 4,990 11 Nonmonetary international and regional organizations7 2,721 4,922 5,957 4,759 6,831 6,243 6,356 5,316 5,055 55,,334444 17 Banks' own liabilities 638 1,909 4,632 2,867 2,317 4,047 3,528 2,229 2,920 2,612 13 Demand deposits 262 106 297 271 347 414 194 255 182 142 14 Time deposits' 58 1,664 3,584 2,235 1,611 2,656 2,468 1,640 2,209 2,213 15 Other2 318 139 750 361 360 977 866 335 529 257 16 Banks' custody liabilities4 2,083 3,013 1,325 1,892 4,514 2,196 2,827 3,087 2,135 2,732 17 U.S. Treasury bills and certificates 541 1,621 463 1,045 3,416 1,224 1,759 2,057 887 1,709 18 Other negotiable and readily transferable instruments6 1,542 1,392 862 847 1,098 971 1,068 1,030 1,248 1,023 19 Other 0 0 0 0 0 0 0 0 0 0 20 Official institutions8 79,126 71,647 79,844 78,095 79,253 77,053 77,005 74,160 77,569 77,669 71 Banks' own liabilities 17,109 16,640 19,396 16,488 17,512 17,105 17,532 16,779 16,471 18,421 22. Demand deposits 2,564 1,899 1,837 1,753 1,663 1,955 1,761 1,733 1,898 1,884 23 Time deposits' 4,230 5,528 7,320 7,286 7,638 6,698 7,489 7,168 7,418 8,212 24 Other2 10,315 9,212 10,239 7,449 8,211 8,452 8,282 7,878 7,154 8,324 75 Banks' custody liabilities4 62,018 55,008 60,448 61,607 61,741 59,948 59,473 57,380 61,098 59,248 26 U.S. Treasury bills and certificates5 52,389 46,658 54,341 55,327 56,084 53,681 53,171 51,035 53,977 52,003 27 Other negotiable and readily transferable instruments6 9,581 8,321 6,082 6,257 5,623 6,249 6,287 6,307 7,030 7,236 28 Other 47 28 25 23 34 19 15 38 91 9 29 Banks9 136,008 185,881 226,886 218,387 222,995 233,424 234,285 249,289' 251,937 246,583 30 Banks' own liabilities 124,312 169,449 205,347 195,811 200,477 211,040 211,812 226,139' 227,349 221,323 31 Unaffiliated foreign banks 26,812 50,230 60,354 58,107 60,489 64,527 63,083 69,092 69,483 72,486 37 Demand deposits 11,614 8,675 8,787 8,175 8,394 8,328 8,797 8,879 9,083 8,175 33 Time deposits' 8,720 28,386 36,964 35,189 37,538 41,905 40,055 45,369 45,689 48,418 34 Other2 6,477 13,169 14,603 14,743 14,557 14,294 14,230 14,845 14,711 15,894 35 Own foreign offices3 97,500 119,219 144,993 137,703 139,988 146,513 148,728 157,047' 157,866 148,837 36 Banks' custody liabilities4 11,696 16,432 21,540 22,576 22,519 22,384 22,473 23,150 24,588 25,260 37 U.S. Treasury bills and certificates 1,685 5,809 10,178 10,776 10,756 10,760 10,795 11,182 12,771 12,967 38 Other negotiable and readily transferable instruments6 4,400 7,857 7,485 7,416 7,378 7,447 7,586 7,523 7,446 7,867 39 Other 5,611 2,766 3,877 4,384 4,385 4,177 4,092 4,445 4,371 4,426 40 Other foreigners 26,035 44,606 56,872 57,717 59,822 60,454 62,160 65,020' 65,955 64,249 41 Banks' own liabilities 21,759 39,092 49,603 49,785 51,552 52,734 53,728 56,235' 57,047 56,012 4? Demand deposits 5,191 5,209 6,681 5,925 6,234 6.770 6,409 6,333' 6,466 6,152 43 Time deposits 16,030 32,457 42,109 43,136 44,434 45,203 46,617 49,226' 49,890 49,159 44 Other2 537 1,426 813 724 884 761 703 675 691 701 45 Banks' custody liabilities4 4,276 5,514 7,269 7,932 8,270 7,719 8,431 8,785 8,907 8,237 46 U.S. Treasury bills and certificates 699 1,540 3,686 3,935 4,021 4,001 4,168 4,238 4,556 4,480 47 Other negotiable and readily transferable instruments6 3,265 3,065 3,100 3,542 3,764 3,408 3,763 3,919 3,810 3,201 48 Other 312 908 483 455 484 311 501 628 541 556 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 10,747 14,307 10,407 10,307 9,416 9,688 10,128 10,630 11,001 10,929 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 • September 1984 3.17 Continued 1984 AArreeaa aanndd ccoouunnttrryy 11998811AA 11998822 11998833 Jan. Feb. Mar. Apr. May June July" 1 Total 243,889 307,056 369,560 358,958 368,902 377,173 379,806 393,784' 400,516 393,844 2 Foreign countries 241,168 302,134 363,603 354,199 362,070 370,931 373,450 388,469' 395,461 388,501 3 Europe 91,275 117,756 138,045 134,899 140,061 142,406 147,724 151,532' 155,668 150,587 4 Austria 5% 519 585 755 756 861 883 867 770 720 3 Belgium-Luxembourg 4,117 2,517 2,709 2,972 3,218 3,367 3,585 4,680 5,138 4,771 t> Denmark 333 509 466 372 355 285 307 378 291 429 7 Finland 296 748 531 298 398 287 485 405 1,249 947 8 France 8,486 8,171 9,441 8,122 10,098 10,728 10,730 12,119' 11,670 11,997 9 Germany 7,645 5,351 3,599 3,823 4,586 4,878 5,205 3,990 3,663 3,896 10 Greece 463 537 520 513 513 503 528 594 596 598 11 Italy 7,267 5,626 8,462 7,622 7,648 7,395 7,813 8,315 8,147 6,949 12 Netherlands 2,823 3,362 4,290 4,008 4,210 4,444 5,036 5,030 5,735 5,616 U Norway 1,457 1,567 1,673 1,481 1,452 1,285 1,847 1,536 2,084 1,624 14 Portugal 354 388 373 377 352 403 414 401 425 440 li Spain 916 1,405 1,603 1,645 1,664 1,749 1,707 1,663 1,774 1,824 16 Sweden 1,545 1,390 1,799 1,8% 1,755 1,838 1,673 1,962 1,486 1,832 17 Switzerland 18,716 29,066 32,219 31,956 32,241 32,237 32,765 32,784 35,152 32,088 18 Turkey 518 296 467 334 400 318 335 444 315 349 19 United Kingdom 28,286 48,172 60,683 61,806 64,436 64,971 67,805 69,006 69,650 69,377 20 Yugoslavia 375 499 562 505 477 479 448 511 556 524 21 Other Western Europe1 6,541 7,006 7,403 5,872 4,%5 5,738 5,584 6,309 6,315 6,069 22 U.S.S.R 49 50 65 62 74 177 61 53 41 31 23 Other Eastern Europe2 493 576 596 482 464 464 510 484 612 504 24 Canada 10,250 12,232 16,026 16,270 17,679 17,182 16,707 17,455 17,572 19,176 25 Latin America and Caribbean 85,223 114,163 140,270 136,091 138,465 143,255 143,864 152,237' 152,086 147,587 26 Argentina 2,445 3,578 4,011 4,303 4,536 4,365 4,616 4,583' 4,535 4,426 27 Bahamas 34,856 44,744 55,977 52,381 52,845 58,141 56,930 62,656 61,566 54,544 28 Bermuda 765 1,572 2,328 2,745 3,165 2,886 3,097 3,276 2,598 6,292 29 Brazil 1,568 2,014 3,178 2,997 3,485 3,723 3,795 3,568' 3,690 4,091 30 British West Indies 17,794 26,381 34,545 33,082 32,504 32,677 32,936 33,777 34,605 33,720 31 Chile 664 1,626 1,842 1,811 1,935 1,876 1,972 1,887 1,970 2,161 32 Colombia 2,993 2,594 1,689 1,586 1,840 11,,666699 11,,881144 1,767' 1,809 1,800 33 Cuba 9 9 8 9 13 88 88 10 9 7 34 Ecuador 434 455 1,047 828 826 825 970 885 908 845 35 Guatemala 479 670 788 800 812 815 850 842 825 809 36 Jamaica 87 126 109 113 131 132 131 131 157 116 37 Mexico 7,235 8,377 10,392 11,006 10,705 10,699 11,187 11,874 11,976 11,631 38 Netherlands Antilles 3,182 3,597 3,879 3,773 4,503 4,901 4,668 4,666' 4,459 4,252 39 Panama 4,857 4,805 5,924 5,372 5,545 5,498 5,482 6,293 6,652 6,659 40 Peru 694 1,147 1,166 1,130 1,146 1,157 1,179 1,249 1,279 1,277 41 Uruguay 367 759 1,232 1,278 1,321 1,418 1,330 1,380' 1,309 1,300 42 Venezuela 4,245 8,417 8,622 9,332 9,461 8,566 9,076 9,434 10,129 9,683 43 Other Latin America and Caribbean 2,548 3,291 3,533 3,543 3,693 3,899 3,823 3,958' 3,610 3,975 44 Asia 49,822 48,716 58,409' 56,043 55,344 5577,,666622 5544,,995511 5577,,118800 6600,,119966 6611,,663333 China 45 Mainland 158 203 249 249 168 272 302 400 469 631 46 Taiwan 2,082 2,761 3,997 4,270 4,291 4,193 4,388 4,364 4,578 4,795 47 Hong Kong 3,950 4,465 6,610 6,1% 5,884 6,387 5,447 5,862 6,416 6,116 48 India 385 433 464 670 749 687 651 646 498 620 49 Indonesia 640 857 997 1,093 859 753 784 897 1,281 911 50 Israel 592 606 1,722 786 752 832 706 754 768 803 51 Japan 20,750 16,078 18,079 17,069 17,615 19,216 18,862 20,522 19,433 19,399 52 Korea 2,013 1,692 1,648 1,614 1,542 1,748 1,409 1,337 1,276 1,381 53 Philippines 874 770 1,234 1,235 1,280 1,264 1,015 1,130 1,032 976 54 Thailand 534 629 747 776 622 714 636 730 875 778 55 Middle-East oil-exporting countries3 12,992 13,433 12,970 12,516 11,587 12,197 12,269 11,615 12,341 14,746 56 Other Asia 4,853 6,789 9,693 9,570 9,994 9,398 8,482 8,924 11,229 10,476 57 Africa 3,180 3,124 2,800 2,917 3,070 3,111 3,182 3,140 3,330 3,130 58 Egypt 360 432 645 572 568 561 649 698 893 857 59 Morocco 32 81 84 109 138 122 127 132 133 128 60 South Africa 420 292 449 486 502 538 264 329 420 409 61 Zaire 26 23 87 61 66 77 119 124 136 99 62 Oil-exporting countries4 1,395 1,280 620 869 839 893 1,046 895 816 695 63 Other Africa 946 1,016 917 821 957 920 978 %2 932 943 64 Other countries 1,419 6,143 8,053 7,979 7,451 7,315 7,023 6,925 6,608 6,388 65 Australia 1,223 5,904 7,857 7,742 7,197 7,095 6,803 6,685 6,316 6,095 66 All other 196 239 196 237 255 220 220 240 292 294 67 Nonmonetary international and regional organizations 2,721 4,922 5,957 4,759 6,831 6,243 6,356 5,316 5,055 5,344 68 International 1,661 4,049 5,273 4,174 6,189 5,426 5,641 4,741 4,436 5,130 69 Latin American regional 710 517 419 433 457 451 419 428 438 41 70 Other regional5 350 357 265 152 186 366 296 146 180 173 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Asian, African, Middle Eastern, and European regional organizations, includes Eastern European countries not listed in line 23. except the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Western Europe." Democratic Republic, Hungary, Poland, and Romania. A Liabilities and claims of banks in the United States were increased, beginning 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and in December 1981, by the shift from foreign branches to international banking United Arab Emirates (Trucial States). facilities in the United States of liabilities to, and claims on, foreign residents. 4. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data 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 1984 AArreeaa aanndd ccoouunnttrryy 11998811AA 11998822 11998833 Jan. Feb. Mar. Apr. May June July I Total 251,589 355,705 389,329 373,493 377,732 385,029 387,429 399,049' 408,323 402,851 2 Foreign countries 251,533 355,636 389,166 373,429 377,568 384,879 387,355 398,846' 408,209 402,634 3 Europe 49,262 85,584 91,416 90,578 91,4% 91,836 95,959 97,994' 103,846 101,173 4 Austria 121 229 401 354 414 449 679 456 632 646 5 Belgium-Luxembourg 2,849 5,138 5,639 5,942 6,182 5,970 6,238 6,626 6,734 6,057 6 Denmark 187 554 1,275 1,301 1,244 1,283 1,197 1,118 1,212 1,200 7 Finland 546 990 1,044 945 952 931 1,021 1,041 1,100 938 8 France 4,127 7,251 8,766 7,998 8,314 8,388 8,734 9,029 9,393 9,673 9 Germany 940 1,876 1,294 1,058 1,047 1,098 1,502 1,111 1,175 1,121 in Greece 333 452 476 508 549 694 830 940 1,036 979 ii Italy 5,240 7,560 9,018 7,899 7,904 8,161 8,286 7,901 8,556 8,317 i? Netherlands 682 1,425 1,302 1,407 1,319 1,309 2,329 1,787 1,781 1,811 13 Norway 384 572 690 652 645 638 705 719 729 648 14 Portugal 529 950 939 954 944 908 1,079 1,146 1,463 1,291 IS Spain 2,095 3,744 3,583 3,391 3,280 3,347 3,719 3,700 3,792 3,941 16 Sweden 1,205 3,038 3,358 3,373 3,356 3,528 3,646 2,957 3,206 2,717 17 Switzerland 2,213 1,639 1,856 1,452 1,302 1,447 1,844 1,570 1,904 1,520 18 Turkey 424 560 812 814 933 958 1,019 1,002 1,160 1,238 19 United Kingdom 23,849 45,781 47,025 48,621 49,219 48,800 49,051 52,850 55,744 54,812 20 Yugoslavia 1,225 1,430 1,673 1,718 1,702 1,706 1,694 1,719 1,808 1,682 21 Other Western Europe1 211 368 477 493 547 499 651 565 571 810 ?? U.S.S.R 377 263 192 162 169 181 174 154 175 155 23 Other Eastern Europe2 1,725 1,762 1,598 1,537 1,475 1,540 1,562 1,602 1,675 1,619 24 Canada 9,193 13,678 16,336 15,881 15,984 17,233 17,065 17,879' 17,524 18,450 75 Latin America and Caribbean 138,347 187,969 204,053 194,811 197,398 201,810 201,573 209,822' 209,417 207,990 76 Argentina 7,527 10,974 11,740 11,746 11,751 11,626 11,427 11,071 11,162 11,360 77 Bahamas 43,542 56,649 58,808 53,084 53,278' 57,169 56,958 61,526 59,437 57,242 78 Bermuda 346 603 566 644 409 532 614 845 559 585 29 Brazil 16,926 23,271 24,482 24,828 24,928 25,697 25,926 25,865 26,226 25,810 30 British West Indies 21,981 29,101 35,232 31,558 33,188 33,157 33,893 36,788 37,431 38,419 31 Chile 3,690 5,513 6,038 6,163 6,286 6,131 6,085 6,146 6,490 6,598 3? Colombia 2,018 3,211 3,745 3,695 3,536 3,667 3,649 3,524 3,559 3,488 33 Cuba 3 3 0 0 0 0 4 0 21 0 34 Ecuador 1,531 2,062 2,307 2,367 2,350 2,334 2,335 2,332 2,373 2,356 35 Guatemala3 124 124 129 189 126 128 129 127 125 140 36 Jamaica3 62 181 215 218 219 210 227 242 216 218 37 Mexico 22,439 29,552 34,705 34,565 34,685 34,593 34,575 35.30C 35,806 35,264 38 Netherlands Antilles 1,076 839 1,154 971 1,043 1,245 1,149 1,164' 1,312 1,350 39 Panama 6,794 10,210 7,848 7,847 8,794 8,367 7,679 7,99C 7,843 8,402 40 Peru 1,218 2,357 2,536 2,467 2,415 2,453 2,380 2,438 2,473 2,477 41 Uruguay 157 686 977 982 908 924 923 887 950 959 47 Venezuela 7,069 10,643 11,287 11,255 11,183 11,142 11,105 11,019 11,174 10,857 43 Other Latin America and Caribbean 1,844 1,991 2,283 2,232 2,298 2,436 2,514 2,557' 2,260 2,466 44 49,851 60,952 67,802 62,876 62,746 64,347 63,004 63,546 67,585 64,958 China 4S Mainland 107 214 292 420 337 364 428 348 554 641 46 Taiwan 2,461 2,288 1,908 1,810 1,710 1,657 1,654 1,585 2,202 2,000 47 Hong Kong 4,132 6,787 8,429 8,129 8,030 7,470 7,921 7,448 8,146 6,838 48 India 123 222 330 344 253 337 372 362 355 322 49 Indonesia 352 348 805 853 899 935 911 983 %9 948 50 Israel 1,567 2,029 1,832 1,556 1,478 1,607 1,846 1,822 1,910 1,809 51 Japan 26,797 28,379 30,564 27,333 27,845 28,688 26,173 27,147 29,274 27,898 5? Korea 7,340 9,387 9,889 9,600 9,513 9,676 10,259 9,565 9,651 9,683 53 Philippines 1,819 2,625 2,099 2,408 2,357 2,371 2,359 2,404 2,495 2,586 54 Thailand 565 643 1,099 1,091 1,109 999 1,014 1,139 949 970 55 Middle East oil-exporting countries4 1,581 3,087 4,954 4,637 4,264 5,039 5,122 5,208 5,093 5,189 56 Other Asia 3,009 4,943 5,599 4,696 4,952 5,203 4,945 5,535 5,986 6,072 57 Africa 3,503 5,346 6,654 6,571 7,226 6,919 6,645 6,764' 6,840 7,029 58 Egypt 238 322 747 738 712 744 698 666 734 638 59 Morocco 284 353 440 450 481 484 486 561 497 548 60 South Africa 1,011 2,012 2,634 2,684 2,928 2,989 2,908 2,974 3,065 3,306 61 Zaire 112 57 33 29 16 13 26 28 39 43 62 Oil-exporting countries5 657 801 1,073 1,037 1,124 1,029 1,000 %7 1,004 1,025 63 Other 1,201 1,802 1,727 1,631 1,964 1,661 1,526 1,568' 1,502 1,469 64 Other countries 1,376 2,107 2,904 2,712 2,718 2,734 3,109 2,942 2,9% 3,033 65 Australia 1,203 1,713 2,276 2,105 2,048 2,007 2,489 2,345 2,435 2,479 66 All other 172 394 627 607 670 727 620 597 561 554 67 Nonmonetary international and regional organizations6 56 68 164 64 164 150 74 103 114 217 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German "Other Western Europe." Democratic Republic, Hungary, Poland, and Romania. NOTE. Data for period before April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and A Liabilities and claims of banks in the United States were increased, United Arab Emirates (Trucial States). beginning in December 1981, by the shift from foreign branches to international banking facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • September 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 1984 TTyyppee ooff ccllaaiimm 11998811AA 11998822 11998833 Jan. Feb. Mar. Apr. May' June July 1 Total 222222288888887777777,,,,,,,555555555555557777777 333333399999996666666,,,,,,,000000011111115555555 444444422222224444444,,,,,,,222222233333332222222 444444422222221111111,,,,,,,222222211111114444444 444444444444444444444,,,,,,,888888888888885555555 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 222222255555551111111,,,,,,,555555588888889999999 333333355555555555555,,,,,,,777777700000005555555 333333388888889999999,,,,,,,333333322222229999999 373,493 377,732 333333388888885555555,,,,,,,000000022222229999999 387,429 399,049 444444400000008888888,,,,,,,333333322222223333333 402,851 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 33333331111111,,,,,,,222222266666660000000 44444445555555,,,,,,,444444422222222222222 55555557777777,,,,,,,555555500000000000000 58,248 57,349 55555557777777,,,,,,,777777733333331111111 58,041 58,069 55555559999999,,,,,,,222222266666666666666 59,717 44 OOwwnn ffoorreeiiggnn ooffffiicceess11 99999996666666,,,,,,,666666655555553333333 111111122222227777777,,,,,,,222222299999993333333 111111144444444444444,,,,,,,999999966666664444444 139,476 141,717 111111144444446666666,,,,,,,444444466666667777777 145,865 155,694 111111155555557777777,,,,,,,888888800000005555555 154,742 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 77777774444444,,,,,,,777777700000004444444 111111122222221111111,,,,,,,333333377777777777777 111111122222223333333,,,,,,,333333344444444444444 115,225 116,877 111111111111119999999,,,,,,,444444499999996666666 121,472 123,417 111111122222228888888,,,,,,,999999999999994444444 125,473 66 DDeeppoossiittss 22222223333333,,,,,,,333333388888881111111 44444444444444,,,,,,,222222222222223333333 44444447777777,,,,,,,000000000000005555555 43,105 44,742 44444445555555,,,,,,,333333366666664444444 45,068 47,066 44444449999999,,,,,,,777777700000005555555 48,509 77 OOtthheerr 55555551111111,,,,,,,333333322222222222222 77777777777777,,,,,,,111111155555553333333 77777776666666,,,,,,,333333333333338888888 72,120 72,135 77777774444444,,,,,,,111111133333332222222 76,403 76,351 77777779999999,,,,,,,222222288888889999999 76,964 88 AAllll ootthheerr ffoorreeiiggnneerrss 44444448888888,,,,,,,999999977777772222222 66666661111111,,,,,,,666666611111114444444 66666663333333,,,,,,,555555522222222222222 60,544 61,788 66666661111111,,,,,,,333333333333335555555 62,051 61.869 66666662222222,,,,,,,222222255555558888888 62,918 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 33333335555555,,,,,,,999999966666668888888 44444440000000,,,,,,,333333311111110000000 33333334444444,,,,,,,999999900000003333333 33333336666666,,,,,,,111111188888885555555 33333336666666,,,,,,,555555566666662222222 1100 DDeeppoossiittss 1111111,,,,,,,333333377777778888888 2222222,,,,,,,444444499999991111111 2222222,,,,,,,999999966666669999999 3333333,,,,,,,666666666666660000000 3333333,,,,,,,555555500000002222222 11 Negotiable and readily transferable instruments3 22222226666666,,,,,,,333333355555552222222 33333330000000,,,,,,,777777766666663333333 22222226666666,,,,,,,000000066666664444444 22222225555555,,,,,,,999999999999992222222 22222225555555,,,,,,,666666699999998888888 12 Outstanding collections and other claims 8888888,,,,,,,222222233333338888888 7777777,,,,,,,000000055555556666666 5555555,,,,,,,888888877777770000000 6666666,,,,,,,555555533333333333333 7777777,,,,,,,333333366666662222222 13 MEMO: Customer liability on 22222229999999,,,,,,,999999955555552222222 33333338888888,,,,,,,111111155555553333333 33333337777777,,,,,,,888888822222220000000 33333336666666,,,,,,,999999988888884444444 44444442222222,,,,,,,666666622222227777777 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States4 ... 40,369 42,358 44,994 45,688r 48,023' 46,979' 48,425' 47,596 43,797 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Includes demand and time deposits and negotiable and nonnegotiable subsidiaries consolidated in "Consolidated Report of Condition" filed with bank certificates of deposit denominated in U.S. dollars issued by banks abroad. For regulatory agencies. Agencies, branches, and majority-owned subsidiaries of description of changes in data reported by nonbanks, see July 1979 BULLETIN, foreign banks: principally amounts due from head office or parent foreign bank, p. 550. and foreign branches, agencies, or wholly owned subsidiaries of head office or • Liabilities and claims of banks in the United States were increased, parent foreign bank. beginning in December 1981, by the shift from foreign branches to international 2. Assets owned by customers of the reporting bank located in the United banking facilities in the United States of liabilities to, and claims on, foreign States that represent claims on foreigners held by reporting banks for the account residents. of their domestic customers. NOTE. Beginning April 1978, data for banks' own claims are given on a monthly 3. Principally negotiable time certificates of deposit and bankers acceptances. basis, but the data for claims of banks' own domestic customers are available on a quarterly basis only. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1983 1984 Maturity; by borrower and area 11998800 11998811 AA.. 11998822 Sept. Dec. Mar. Junep 1 Total 106,748 154,590 228,150 237,217 243,602 235,501 249,765 By borrower 2 Maturity of 1 year or less1 82,555 116,394 173,917 176,258 176,623 161,864 172,227 3 Foreign public borrowers .... 9,974 15,142 21,256 25,563 24,455 20,656 21,028 4 All other foreigners 72,581 101,252 152,661 150,695 152,168 141,208 151,199 5 Maturity of over 1 year1 24,193 38,197 54,233 60,958 66,979 73,637 77,537 6 Foreign public borrowers .... 10,152 15,589 23,137 28,284 32,478 35,825 37,788 7 All other foreigners 14,041 22,608 31,095 32,674 34,501 37,812 39,750 By area Maturity of 1 year or less1 8 Europe 18,715 28,130 50,500 53,499 56,078 53,167 59,208 9 Canada 2,723 4,662 7,642 6,652 6,206 6,566 6,940 10 Latin America and Caribbean 32,034 48,717 73,291 76,396 73,974 65,082 64,842 11 Asia 26,686 31,485 37,578 33,686 34,569 31,238 34,807 12 Africa 1,757 2,457 3,680 4,570 4,206 4,472 4,782 13 All other2 640 943 1,226 1,454 1,589 1,340 1,647 Maturity of over 1 year1 14 Europe 5,118 8,100 11,636 12,358 13,354 13,068 12,839 15 Canada 1,448 1,808 1,931 1,760 1,857 2,035 2,206 16 Latin America and Caribbean 15,075 25,209 35,247 39,150 43,561 49,907 54,289 17 Asia 1,865 1,907 3,185 4,735 4,828 5,131 5,107 18 Africa 507 900 1,494 1,819 2,278 2,291 1,859 19 Allother2 179 272 740 1,136 1,101 1,206 1,237 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 Sept. Dec. Mar. June Sept. Dec. Mar. June7? 1 Total 303.9 352.0 415.2 438.4 438.7 441.1 437.4 430.2' 436.0' 431.3' 429.2 2 G-10 countries and Switzerland 138.4 162.1 175.5 175.4 179.7 182.2 176.9 168.9' 167.9' 165.1' 156.1 3 Belgium-Luxembourg 11.1 13.0 13.3 13.6 13.1 13.7 13.3 12.6 12.4 11.0 10.4 4 France 11.7 14.1 15.3 15.8 17.1 17.1 17.1 16.2 16.3 15.9 14.2 5 Germany 12.2 12.1 12.9 12.2 12.7 13.5 12.6 11.6 11.3 11.7 11.0 6 Italy 6.4 8.2 9.6 9.7 10.3 10.2 10.5 10.0 11.4 11.2 11.5 7 Netherlands 4.8 4.4 4.0 3.8 3.6 4.3 4.0 3.6 3.5 3.3' 3.0 8 Sweden 2.4 2.9 3.7 4.7 5.0 4.3 4.7 4.9 5.1 5.2 4.3 9 Switzerland 4.7 5.0 5.5 5.1 5.0 4.6 4.8 4.2 4.3 4.2 4.2 10 United Kingdom 56.4 67.4 70.1 70.3 72.1 72.9 70.3 67.6' 65.1' 64.2' 59.2 11 Canada 6.3 8.4 10.9 11.0 10.4 12.5 10.8 9.0 8.3 8.6 8.8 12 Japan 22.4 26.5 30.2 29.3 30.2 29.2 28.7 29.2' 30.1 30.0 29.5 13 Other developed countries 19.9 21.6 28.4 32.7 33.7 34.0 34.4 34.2 35.9 35.5 37.1 14 Austria 2.0 1.9 1.9 2.0 1.9 2.1 2.1 1.9 1.9 2.0 2.0 15 Denmark 2.2 2.3 2.3 2.5 2.4 3.3 3.4 3.3 3.4 3.4 3.1 16 Finland 1.2 1.4 1.7 1.8 2.2 2.1 2.1 1.8 2.4 2.1 2.3 17 Greece 2.4 2.8 2.8 2.6 3.0 2.9 2.9 2.9 2.8 3.0 3.3 18 Norway 2.3 2.6 3.1 3.4 3.3 3.3 3.4 3.2 3.3 3.2 3.2 19 Portugal .7 .6 1.1 1.6 1.5 1.4 1.4 1.3 1.3 1.1 1.7 20 Spain 3.5 4.4 6.6 7.7 7.5 7.1 7.2 7.2 7.1 7.1 7.3 21 Turkey 1.4 1.5 1.4 1.5 1.4 1.5 1.4 1.5 1.7 1.9 2.0 22 Other Western Europe 1.4 1.7 2.1 2.1 2.3 2.3 2.0 2.1 1.8 1.8 1.9 23 South Africa 1.3 1.1 2.8 3.6 3.7 3.6 3.9 4.7 4.7 4.8 4.7 24 Australia 1.3 1.3 2.5 4.0 4.4 4.6 4.6 4.4 5.5 5.2 5.7 25 OPEC countries2 22.9 22.7 24.8 27.3 27.4 28.5 28.3 27.2 28.9 28.6' 26.7 26 Ecuador 1.7 2.1 2.2 2.3 2.2 2.2 2.2 2.1 2.2 2.1 2.1 27 Venezuela 8.7 9.1 9.9 10.4 10.5 10.4 10.4 9.8 9.9 9.7 9.5 28 Indonesia 1.9 1.8 2.6 2.9 3.2 3.5 3.2 3.4 3.8 4.0 4.1 29 Middle East countries 8.0 6.9 7.5 9.0 8.7 9.3 9.5 9.1 10.0 9.8 8.4 30 African countries 2.6 2.8 2.5 2.7 2.8 3.0 3.0 2.8 3.0 3.0 2.7 31 Non-OPEC developing countries 63.0 77.4 96.3 104.1 107.1 107.7 108.3 109.4' 111.1' 111.6' 114.8 Latin America 32 Argentina 5.0 7.9 9.4 9.2 8.9 9.0 9.4 9.5 9.5 9.5 9.2 33 Brazil 15.2 16.2 19.1 22.4 22.9 23.1 22.6 22.9 22.9 24.9 25.4 34 Chile 2.5 3.7 5.8 6.2 6.3 6.0 5.8 6.2 6.4 6.5' 6.7 35 Colombia 2.2 2.6 2.6 2.8 3.1 2.9 3.2 3.2 3.2 3.1 3.0 36 Mexico 12.0 15.9 21.6 25.0 24.5 25.1 25.2 25^ 26.0 25.4' 27.7 37 Peru 1.5 1.8 2.0 2.6 2.6 2.4 2.6 2.4 2.4 2.3 2.3 38 Other Latin America 3.7 3.9 4.1 4.3 4.0 4.2 4.3 4.2 4.2 4.4 4.1 Asia China 39 Mainland .1 .2 .2 .2 .2 .2 .2 .2 .3 .3' .6 40 Taiwan 3.4 4.2 5.1 4.9 5.3 5.1 5.1 5.2 5.3 4.9' 5.8 41 India .2 .3 .3 .5 .6 .4 .5 .8' 1.0' 1.0 1.0 42 Israel 1.3 1.5 2.1 1.9 2.3 2.0 2.3 1.7 1.9' 1.6 1.9 43 Korea (South) 5.4 7.1 9.4 9.4 10.9 10.9 10.8 lO^ 11.3 11.1 11.2 44 Malaysia 1.0 1.1 1.7 1.8 2.1 2.5 2.6 2.8 2.9 2.8 2.7 45 Philippines 4.2 5.1 6.0 6.1 6.3 6.6 6.4 6.2 6.2 6.6' 6.3 46 Thailand 1.5 1.6 1.5 1.3 1.6 1.6 1.8 1.7 2.1' 1.9 1.8 47 Other Asia .5 .6 1.0 1.3 1.1 1.4 1.2 1.0 1.0 .9 1.1 Africa 48 Egypt .6 .8 1.1 1.3 1.2 1.1 1.3 1.4 1.5' 1.5' 1.4 49 Morocco .6 .7 .7 .8 .7 .8 .8 .8 .8 .8 .8 50 Zaire .2 .2 .2 .1 .1 .1 .1 .1 .1 .1 .1 51 Other Africa3 1.7 2.1 2.3 2.2 2.4 2.3 2.2 2.4 2.3 2.2 1.9 52 Eastern Europe 7.3 7.4 7.8 6.3 6.2 5.7 5.7 5.3 5.3 4.9 4.9 53 U.S.S.R .7 .4 .6 .3 .3 .3 .4 .2 .2 .2 .2 54 Yugoslavia 1.8 2.3 2.5 2.2 2.2 2.2 2.3 2.3 2.3 2.2 2.3 55 Other 4.8 4.6 4.7 3.8 3.7 3.2 3.0 2.8 2.8 2.5 2.5 56 Offshore banking centers 40.4 47.0 63.7 72.2 66.8 66.2 67.6 68.3' 70.1' 69.3' 72.3 57 Bahamas 13.7 13.7 19.0 21.4 19.0 17.4 19.6 21.1' 21.2' 23.7' 26.5 58 Bermuda .8 .6 .7 .8 .9 1.0 .8 .8 .9 .7 .7 59 Cayman Islands and other British West Indies 9.4 10.6 12.4 13.6 12.9 12.0 12.2 10.7' 12.4' 11.(K 11.7 60 Netherlands Antilles 1.2 2.1 3.2 3.3 3.3 3.1 2.6 4.1 4.2 3.3' 3.3 61 Panama4 4.3 5.4 7.7 8.1 7.6 7.1 6.6 5.7 6.0 6.3 6.4 62 Lebanon .2 .2 .2 .1 .1 .1 .1 .1 .1 .1 .1 63 Hong Kong 6.0 8.1 11.8 15.1 13.9 15.1 14.6 15.1 14.9 14.4' 13.5 64 Singapore 4.5 5.9 8.7 9.8 9.2 10.3 11.0 10.5 10.3' 9.9' 10.1 65 Others5 .4 .3 .1 .0 .0 .0 .0 .1 .0 .0 .0 66 Miscellaneous and unallocated6 11.7 14.0 18.8 20.4 17.9 16.8 16.1 16.9- 17.0 16.4' 17.3 1. The banking offices covered by these data are the U.S. offices and foreign Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as well branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. as Bahrain and Oman (not formally members of OPEC). Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. Excludes Liberia. (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are 4. Includes Canal Zone beginning December 1979. adjusted to exclude the claims on foreign branches held by a U.S. office or another 5. Foreign branch claims only. foreign branch of the same banking institution. The data in this table combine 6. Includes New Zealand, Liberia, and international and regional organizaforeign branch claims in table 3.14 (the sum of lines 7 through 10) with the claims tions. of U.S. offices in table 3.18 (excluding those held by agencies and branches of 7. Beginning with June 1984 data, reported claims held by foreign branches foreign banks and those constituting claims on own foreign branches). have been reduced by an increase in the reporting threshold for "shell" branches 2. Besides the Organization of Petroleum Exporting Countries shown individ- from $50 million to $150 million equivalent in total assets, the threshold now ually, this group includes other members of OPEC (Algeria, Gabon, Iran, Iraq, applicable to all reporting branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • September 1984 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1983 1984 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 11998822 Mar. June Sept. Dec. Mar.P 1 Total 29,434 28,618 25,663 23,450 22,846 24,762 23,791 27,958 2 Payable in dollars 25,689 24,909 22,470 20,459 19,922 21,895 20,715 24,677 3 Payable in foreign currencies 3,745 3,709 3,193 2,991 2.924 2,867 3,076 3,282 By type 4 Financial liabilities 11,330 12,157 11,001 10,996 11.181 10,946 10,504 14,129 5 Payable in dollars 8,528 9,499 8,829 8,952 9,120 8.976 8,646 12.037 6 Payable in foreign currencies 2,802 2,658 2,172 2,044 2,061 1.971 1,858 2,092 7 Commercial liabilities 18,104 16,461 14,662 12,454 11,665 13,815 13,286 13,829 8 Trade payables 12,201 10,818 7,707 5,627 6,026 7,056 6,615 6,758 9 Advance receipts and other liabilities 5,903 5,643 6,955 6,827 5,640 6,760 6,672 7,071 10 Payable in dollars 17,161 15,409 13,641 11,507 10,802 12,919 12,069 12,639 11 Payable in foreign currencies 943 1,052 1,021 947 864 896 1,218 1,190 By area or country Financial liabilities 12 Europe 6,481 6,825 6,438 6,319 6,337 6,027 5,721 7,041 13 Belgium-Luxembourg 479 471 557 459 482 379 302 426 14 France 327 709 731 725 756 785 820 933 15 Germany 582 491 470 487 460 454 498 524 16 Netherlands 681 748 711 699 728 730 581 532 17 Switzerland 354 715 753 710 629 530 486 641 18 United Kingdom 3,923 3,565 3,075 3,097 3,108 2,992 2,885 3,835 19 Canada 964 963 746 733 876 788 768 798 20 Latin America and Caribbean 3,136 3,356 2,749 2,787 2,623 2,709 2,592 4,858 21 Bahamas 964 1,279 904 857 776 771 749 1.411 22 Bermuda 1 7 14 18 10 13 13 51 23 Brazil 23 22 28 39 34 32 32 37 24 British West Indies 1,452 1,241 1,025 1,053 1,033 1,023 1,003 2,595 25 Mexico 99 102 121 149 151 185 215 245 26 Venezuela 81 98 114 121 124 117 124 121 27 Asia 723 976 1,039 1,124 1,319 1,388 1,396 1,404 28 Japan 644 792 715 781 943 957 962 1,013 29 Middle East oil-exporting countries2 38 75 169 168 205 201 170 170 30 Africa 11 14 17 20 17 19 18 19 31 Oil-exporting countries3 1 0 0 0 0 0 0 0 32 All other4 15 24 12 13 9 15 10 9 Commercial liabilities 33 Europe 4,402 3,770 3,649 3,443 3,368 3,384 3,153 3,354 34 Belgium-Luxembourg 90 71 52 45 41 47 62 40 35 France 582 573 597 578 617 506 437 481 36 Germany 679 545 467 455 439 461 427 416 37 Netherlands 219 220 346 351 342 243 268 259 38 Switzerland 499 424 363 354 357 448 241 413 39 United Kingdom 1,209 880 850 679 633 786 637 734 40 Canada 888 897 1,490 1,433 1,465 1,407 1,841 1,789 41 Latin America and Caribbean 1,300 1,044 1,008 1,066 1024 1,067 1,125 1,426 42 Bahamas 8 2 16 4 1 1 1 14 43 Bermuda 75 67 89 117 76 76 67 144 44 Brazil 111 67 60 51 49 48 44 68 45 British West Indies 35 2 32 4 22 14 6 33 46 Mexico 367 340 379 355 399 429 536 619 47 Venezuela 319 276 165 198 236 217 180 254 48 Asia 10,242 9,384 7,160 5,437 4,799 6,852 6,032 5,961 49 Japan 802 1,094 1,226 1,235 1,236 1,294 1,247 1,291 50 Middle East oil-exporting countries2 5 8,098 7,008 4,531 2,803 2,294 4,072 3,498 3,209 51 Africa 817 703 704 497 492 506 442 539 52 Oil-exporting countries3 517 344 277 158 167 204 157 243 53 All other4 456 664 651 578 518 600 692 760 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 States' Millions of dollars, end of period 1983 1984 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 11998822 Mar. June Sept. Dec. Mar.P 1 Total 34,482 36,185 28,483 31,230 31,505 31,656 34,083 32,426 ? Payable in dollars 31,528 32,582 25,851 28,510 28,849 28,780 31,077 29,519 3 Payable in foreign currencies 2,955 3,603 2,632 2,720 2,656 2,877 3,006 2,908 By type 4 Financial claims 19,763 21,142 17,501 20,261 20,896 20,831 22,978 2211,,557799 s Deposits 14,166 15,081 12,965 15,610 16,072 15,987 17,911 16.495 Payable in dollars 13,381 14,456 12.534 15,130 15,632 15,542 17,415 16.066 7 Payable in foreign currencies 785 625 430 480 439 445 497 428 8 Other financial claims 5,597 6,061 4.536 4,651 4,824 4,845 5,067 5,084 9 Payable in dollars 3,914 3,599 2,895 3,006 3,226 3,019 3,165 3,277 10 Payable in foreign currencies 1,683 2,462 1,641 1,645 1,598 1,826 1,902 1,808 11 Commercial claims 14,720 15,043 10,982 10,969 10,609 10,825 11,105 10,847 1? Trade receivables 13,960 14,007 9,973 9,765 9,241 9,526 9,695 9,540 13 Advance payments and other claims 759 1,036 1,010 1,203 1,367 1,299 1,410 1,307 14 Payable in dollars 14,233 14,527 10,422 10,374 9,991 10,219 10,498 10,176 15 Payable in foreign currencies 487 516 561 595 618 606 607 671 By area or country Financial claims 16 Europe 6,069 4,596 4,868 6,229 6,847 6,202 6,374 6,446 17 Belgium-Luxembourg 145 43 10 58 12 25 37 30 IX France 298 285 134 98 140 135 130 145 19 Germany 230 224 178 127 216 151 129 121 70 Netherlands 51 50 97 140 136 89 49 57 71 Switzerland 54 117 107 107 37 34 38 90 22 United Kingdom 4,987 3,546 4,064 5,434 6,058 5,547 5,768 5,783 23 Canada 5,036 6,755 4,287 4,613 4,885 4,958 5,836 5,577 24 Latin America and Caribbean 7,811 8,812 7,458 8,527 8,089 8,609 9,767 8,467 75 Bahamas 3,477 3,650 3,265 3,811 3,291 3,389 4,732 3,233 26 Bermuda 135 18 32 21 92 62 96 3 71 Brazil 96 30 62 50 48 49 53 87 28 British West Indies 2,755 3,971 3,171 3,408 3,447 3,932 3,801 4,243 79 Mexico 208 313 274 352 348 315 291 279 30 Venezuela 137 148 139 156 152 137 134 130 31 Asia 607 758 698 712 771 764 709 776 32 Japan 189 366 153 233 288 257 242 333 33 Middle East oil-exporting countries2 20 37 15 18 14 8 4 7 34 Africa 208 173 158 153 154 151 147 144 35 Oil-exporting countries3 26 46 48 45 48 45 55 42 36 All other4 32 48 31 25 149 148 145 169 Commercial claims ^7 Europe 5,544 5,405 3,777 3,594 3,410 3,349 3,678 3,623 38 Belgium-Luxembourg 233 234 150 140 144 131 142 188 39 France 1,129 776 473 489 499 486 459 413 40 Germany 599 561 356 424 364 381 348 363 41 Netherlands 318 299 347 309 242 282 333 308 47 Switzerland 354 431 339 227 303 270 317 336 43 United Kingdom 929 985 808 754 739 734 809 786 44 Canada 914 967 632 648 716 788 829 1,052 45 Latin America and Caribbean 3,766 3,479 2,521 2,699 2,722 2,864 2,695 2,420 46 Bahamas 21 12 21 30 30 15 8 8 47 Bermuda 108 223 259 172 108 242 190 216 48 Brazil 861 668 258 402 512 611 493 357 49 British West Indies 34 12 12 21 21 12 7 7 50 Mexico 1,102 1,022 774 894 956 897 884 745 51 Venezuela 410 424 351 288 273 282 272 268 5? Asia 3,522 3,959 3,048 3,128 2,871 2,936 3,041 2,994 S3 Japan 1,052 1,245 1,047 1,115 949 1,037 1,092 1,200 54 Middle East oil-exporting countries2 825 905 751 702 700 719 737 701 55 Africa 653 772 588 559 528 562 585 497 56 Oil-exporting countries3 153 152 140 131 130 131 139 133 57 All other4 321 461 417 342 361 326 277 261 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 • September 1984 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1984 1984 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998822 11998833 Jan.- July Jan. Feb. Mar. Apr. May June July" U.S. corporate securities STOCKS 1 Foreign purchases 41,881 69,770 35,241 5,438 6,234 6,101 4,510 5,048 4,552 3,358 2 Foreign sales 37,981 64,360 35,717 5,799 5,823 5,599 4,189 5,494 4,899 3,914 3 Net purchases, or sales (—) 3,901 5,410 -477 -361 411 502 321 -446 -347 -556 4 Foreign countries 3,816 5,312 -456 -350 480 470 320 -454 -357 -565 5 Europe 2,530 3,979 -687 -168 147 329 208 -281 -317 -605 6 France -143 -97 -83 -72 -97 -4 38 100 -3 -45 7 Germany 333 1,045 242 95 116 151 -43 -40 2 -38 8 Netherlands -63 -109 -138 1 1 32 -15 -47 -76 -34 9 Switzerland -579 1,325 -385 -92 282 -3 90 -220 -120 -322 10 United Kingdom 3,117 1,799 -399 -94 -168 125 137 -80' -179 -140 11 Canada 222 1,151 1,065 83 323 300 73 -61 158 188 12 Latin America and Caribbean 317 529 267 124 43 14 25 82 38 -58 13 Middle East1 366 -807 -1,098 -361 -44 -197 -58 -168 -215 -55 14 Other Asia 247 394 -17 -48 36 33 66 -28 -27 -49 15 Africa 2 42 10 5 10 -7 5 -4 3 -2 16 Other countries 131 24 5 16 -34 -1 2 6 2 16 17 Nonmonetary international and regional organizations 85 98 -21 -11 -70 32 1 8 10 9 BONDS2 18 Foreign purchases 21,639 24,049 14,664 1,834 2,113 2,200 1,701 1,619' 2,004 3,194 19 Foreign sales 20,188 23,092 13,304 1,773 1,943 2,074 1,857 1,442 1.795 2,420 20 Net purchases, or sales (—) 1,451 957 1,360 61 170 126 -156 178' 208 774 21 Foreign countries 1,479 942 1,227 72 82 183 -224 212' 169 733 22 Europe 2,082 961 870 72 -55 -15 21 85 273 490 23 France 305 -89 25 -1 -5 -1 -5 0 4 33 24 Germany 2,110 347 602 -37 -32 117 68 107 122 257 25 Netherlands 33 51 38 3 25 9 -12 -1 11 3 26 Switzerland 157 632 -101 12 -102 -45 -22 8 35 13 27 United Kingdom -589 434 -122 127 101 -58 -239 -59 87 -71 28 Canada 24 123 -109 1 -10 -23 -77 3 32 -35 29 Latin America and Caribbean 159 100 162 9 16 18 -8 13R 15 99 30 Middle East1 -752 -1,159 -436 -26 58 30 -263 11 -287 40 31 Other Asia -22 865 738 18 75 170 102 100 135 138 32 Africa -19 0 1 -1 0 0 1 0 0 0 33 Other countries 7 52 2 0 -2 3 1 0 0 1 34 Nonmonetary international and regional organizations -28 15 133 -11 87 -57 67 -34 40 41 Foreign securities 35 Stocks, net purchases, or sales (-) -1,341 -3,765 501 -114 345 145 -18 70' -40 113 36 Foreign purchases 7,163 13,281 8,688 1,215 1,487 1,575 1,242 1,163' 1,110 897 37 Foreign sales 8,504 17,046 8,187 1,329 1,142 1,429 1,260 1,092 1,150 785 38 Bonds, net purchases, or sales (-) -6,631 -3,651 -423 267 -72 77 -399 -641' 246 99 39 Foreign purchases 27,167 35,922 31,390 3,424 3,903 4,985 3,812 5,155' 5,307 4,803 40 Foreign sales 33,798 39,572 31,813 3,157 3,975 4,907 4,211 5,797 5,061 4,704 41 Net purchases, or sales (-), of stocks and bonds .... -7,972 -7,416 78 153 273 223 -417 -571' 206 211 42 Foreign countries -6,806 -6,971 -217 124 241 138 -415 -646' 192 149 43 Europe -2,584 -5,866 -3,648 -34 -404 -236 -537 -1,524' -466 -447 44 Canada -2,363 -1,344 459 14 185 117 -187 38 122 171 45 Latin America and Caribbean 336 1,120 1,681 114 188 49 126 602 466 136 46 Asia -1,822 -855 1,382 33 282 220 187 243 80 336 47 Africa -9 141 -72 -5 -11 -10 -4 -16 -4 -21 48 Other countries -364 -166 -19 2 1 -3 0 12 -6 -25 49 Nonmonetary international and regional organizations -1,165 -445 295 28 32 85 -2 74 15 62 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 1984 11998822 11998833 Country or area J Ju a l n y . - Jan. Feb. Mar. Apr. Mayr June July P Holdings (end of period)1 1 Estimated total2 85,220 88,932 89,645 90,206 89,656 92,005 93,412 93,339 94,963 2 Foreign countries2 80,637 83,818 84,534 84,382 84,383 85,408 85,791 86,804 88,001 3 Europe2 29,284 35,509 36,009 37,319 37,226 37,787 38,383 39,287 40,379 4 Belgium-Luxembourg 447 16 33 50 57 91 61 135 138 5 Germany2 14,841 17,290 17,581 18,527 18,834 19,201 19,649 19,735 19,627 6 Netherlands 2,754 3,129 3,113 3,052 3,023 3,117 2,979 3,014 3,120 7 Sweden 677 847 878 898 945 949 954 940 957 8 Switzerland2 1,540 1,118 1,167 1,206 1,256 1,241 1,403 1,752 2,021 9 United Kingdom 6,549 8,515 8,701 8,587 8,406 8,411 8,647 9,191 9,439 10 Other Western Europe 2,476 4,594 4,536 5,000 4,707 4,776 4,691 4,520 5,079 11 Eastern Europe 0 0 0 0 0 0 -1 -1 -1 12 Canada 602 1,301 1,298 1,310 1,090 1,299 1,308 1,415 1,446 13 Latin America and Caribbean 11,,007766 863 1,426 840 563 572 962 862 319 14 Venezuela 118888 64 64 64 64 65 65 75 75 15 Other Latin America and Caribbean 656 716 696 574 504 453 546 490 592 16 Netherlands Antilles 232 83 665 201 -6 53 351 297 -347 17 Asia 49,543 46,026 45,690 44,811 45,401 45,610 44,973 45,075 45,661 18 Japan 11,578 13,911 14,013 14,351 14,334 14,547 14,871 15,361 15,746 19 Africa 77 79 79 78 82 85 88 88 88 20 All other 55 38 31 23 21 57 77 77 108 21 Nonmonetary international and regional organizations 4,583 5,114 5,111 5,824 5,273 6,597 7,621 6,535 6,962 22 International 4,186 4,404 4,467 5,139 4,614 5,936 6,946 5,860 6,241 23 Latin American regional 6 6 6 6 6 6 6 6 6 Transactions (net purchases, or sales (-) during period) 24 Total2 14,972 3,711 6,032 713 561 -550 2,348 1,407 -73 1,624 25 Foreign countries2 16,072 3,180 4,183 716 -152 1 1,025 382 1,013 1,197 26 Official institutions 14,550 779 623 539 8 476 622 -358 -873 209 27 Other foreign2 1,518 2,400 3,562 178 -159 -475 403 740 1,887 988 28 Nonmonetary international and regional organizations -1,097 535 1,845 -4 712 -551 1,322 1,026 -1,087 427 MEMO: Oil-exporting countries 29 Middle East3 7,575 -5,419 -3,238 -515 -829 46 -678 -1,037 67 -291 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 Aug. 31, 1984 Rate on Aug. 31, 1984 Rate on Aug. 31, 1984 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Austria.. 4.5 June 1984 France1 11.25 July 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.. 12.39 Aug. 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 • September 1984 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1984 CCoouunnttrryy,, oorr ttyyppee 11998811 11998822 11998833 Feb. Mar. Apr. May June July Aug. 1 Eurodollars 16.79 12.24 9.57 9.91 10.40 10.83 11.53 11.68 12.02 11.81 2 United Kingdom 13.86 12.21 10.06 9.35 8.90 8.84 9.32 9.43 11.38 11.09 3 Canada 18.84 14.38 9.48 9.85 10.40 10.75 11.52 11.86 13.03 12.41 4 Germany 12.05 8.81 5.73 5.91 5.82 5.81 6.08 6.11 6.09 6.00 5 Switzerland 9.15 5.04 4.11 3.47 3.60 3.61 3.83 4.15 4.72 4.81 6 Netherlands 11.52 8.26 5.58 5.95 6.09 6.04 6.05 6.09 6.39 6.26 7 France 15.28 14.61 12.44 12.36 12.53 12.46 12.16 12.23 11.70 11.37 8 Italy 19.98 19.99 18.95 17.40 17.28 17.38 16.80 16.75 16.73 16.50 9 Belgium 15.28 14.10 10.51 11.43 12.02 11.66 11.80 11.90 11.90 11.73 10 Japan 7.58 6.84 6.49 6.34 6.41 6.26 6.24 6.35 6.31 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 Mar. Apr. May June July Aug. 1 Australia/dollar1 114.95 101.65 90.14 95.13 92.31 90.61 88.26 83.42 84.73 2 Austria/schilling 15.948 17.060 17.968 18.285 18.630 19.316 19.226 19.998 20.268 3 Belgium/franc 37.194 45.780 51.121 53.135 54.078 55.925 55.840 57.714 58.282 4 Brazil/cruzeiro 92.374 179.22 573.27 1266.64 1387.52 1497.64 1,643.81 1,819.00 1994.30 5 Canada/dollar 1.1990 1.2344 1.2325 1.2697 1.2796 1.2944 1.3040 1.3238 1.3035 6 China, P.R./yuan 1.7031 1.8978 1.9809 2.0646 2.0929 2.1866 2.2178 2.2996 2.3718 7 Denmark/krone 7.1350 8.3443 9.1483 9.5175 9.7311 10.0618 10.050 10.4178 10.5174 8 Finland/markka 4.3128 4.8086 5.5636 5.6136 5.6434 5.8115 5.8182 6.0187 6.0626 9 France/franc 5.4396 6.5793 7.6203 8.0022 8.1411 8.4435 8.4181 8.7438 8.8567 10 Germany/deutsche mark 2.2631 2.428 2.5539 2.5973 2.6474 2.7484 2.7397 2.8492 2.8856 11 Greece/drachma n.a. 66.872 87.895 102.40 104.89 108.37 108.85 112.40 115.11 12 Hong Kong/dollar 5.5678 6.0697 7.2569 7.7942 7.8073 7.8159 7.8131 7.8519 7.8388 13 India/rupee 8.6807 9.4846 10.1040 10.714 10.820 11.017 11.064 11.371 11.556 14 Ireland/pound1 161.32 142.05 124.81 117.88 115.67 111.75 111.67 107.63 106.84 15 Israel/shekel n.a. 24.407 55.865 146.40 168.76 191.56 215.06 253.14 n.a. 16 Italy/lira 1138.60 1354.00 1519.30 1614.17 1638.48 1696.32 1,694.80 1,751.18 1780.47 17 Japan/yen 220.63 249.06 237.55 225.27 225.20 230.48 233.57 243.07 242.26 18 Malaysia/ringgit 2.3048 2.3395 2.3204 2.2933 2.2904 2.3029 2.3109 2.3385 2.3331 19 Mexico/peso 24.547 72.990 155.01 172.93 179.07 198.35 196.54 196.63 196.98 20 Netherlands/guilder 2.4998 2.6719 2.8543 2.9326 2.9864 3.0926 3.0882 3.2155 3.2539 21 New Zealand/dollar1 86.848 75.101 66.790 66.714 65.834 64.892 64.205 55.631 49.912 22 Norway/krone 5.7430 6.4567 7.3012 7.5028 7.5992 7.8100 7.8162 8.2151 8.2991 23 Philippines/peso 7.8113 8.5324 11.0940 14.186 14.257 14.262 14.250 n.a. n.a. 24 Portugal/escudo 61.739 80.101 111.610 131.70 134.46 139.85 141.83 152.17 151.02 25 Singapore/dollar 2.1053 2.1406 2.1136 2.0893 2.0853 2.1006 2.1122 2.1473 2.1472 26 South Africa/rand1 114.77 92.297 89.85 82.10 80.19 78.15 76.49 66.52 63.76 27 South Korea/won n.a. 731.93 776.04 794.51 796.41 801.54 802.20 810.96 811.42 28 Spain/peseta 92.396 110.09 143.500 149.68 150.26 154.03 154.75 161.37 164.41 29 Sri Lanka/rupee 18.967 20.756 23.510 25.177 25.133 25.161 25.176 25.223 25.285 30 Sweden/krona 5.0659 6.2838 7.6717 7.7323 7.8444 8.0782 8.0993 8.3063 8.3489 31 Switzerland/franc 1.9674 2.0327 2.1006 2.1490 2.1913 2.2680 2.2832 2.4115 2.4150 32 Taiwan/Dollar n.a. n.a. n.a. 40.078 39.784 39.716 39.843 39.477 39.092 33 Thailand/baht 21.731 23.014 22.991 23.004 23.010 23.010 23.010 23.020 23.018 34 United Kingdom/pound1 202.43 174.80 151.59 145.57 142.10 138.94 137.70 132.00 131.32 35 Venezuela/bolivar 4.2781 4.2981 10.6840 13.470 14.375 15.661 14.709 13.067 12.725 MEMO United States/dollar2 102.94 116.57 125.34 128.07 130.01 133.99 134.31 139.30 140.21 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 transfers. Data in this table also appear in the Board's G.5 (405) release. For address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations 0 Calculated to be zero c Corrected n.a. Not available e Estimated n.e.c. Not elsewhere classified p Preliminary IPCs Individuals, partnerships, and corporations r Revised (Notation appears on column heading when REITs Real estate investment trusts about half of the figures in that column are changed.) RPs Repurchase agreements * Amounts insignificant in terms of the last decimal place SMSAs Standard metropolitan statistical areas shown in the table (for example, less than 500,000 Cell not applicable when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other politi- "U.S. government securities" may include guaranteed cal subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables details do not add to totals because of also include not fully guaranteed issues) as well as direct rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases. June 1984 A83 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Assets and liabilities of commercial banks, March 31, 1983 August 1983 A70 Assets and liabilities of commercial banks, June 30, 1983 December 1983 A68 Assets and liabilities of commercial banks, September 30, 1983 March 1984 A68 Assets and liabilities of commercial banks, December 31, 1983 June 1984 A66 Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1983 August 1983 A76 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1983 December 1983 A74 Assets and liabilities of U.S. branches and agencies of foreign banks, September 30, 1983 March 1984 A74 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1983 June 1984 A72 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 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 NAOMI P. SALUS, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel EDWARD C. ETTIN, Deputy Director J. VIRGIL MATTINGLY, JR., Associate General Counsel MICHAEL J. PRELL, Deputy Director GILBERT T. SCHWARTZ, Associate General Counsel JOSEPH S. ZEISEL, Deputy Director RICHARD M. ASHTON, Assistant General Counsel JARED J. ENZLER, Associate Director NANCY P. JACKLIN, Assistant General Counsel ELEANOR J. STOCKWELL, Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel DAVID E. LINDSEY, 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 RALPH W. SMITH, JR., Assistant Director FREDERICK R. DAHL, Associate Director DON E. KLINE, Associate Director FREDERICK M. STRUBLE, Associate Director HERBERT A. BIERN, Assistant Director ANTHONY G. CORNYN, Assistant Director JACK M. EGERTSON, Assistant Director ROBERT S. PLOTKIN, Assistant Director STEPHEN C. SCHEMERING, Assistant Director RICHARD SPILLENKOTHEN, 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

A67 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 WILLIAM R. JONES, Assistant Staff Director JOSEPH W. DANIELS, SR., Advisor, Equal Employment EDWARD T. MULRENIN, Assistant Staff Director Opportunity Programs STEPHEN R. MALPHRUS, Assistant Staff Director for Office Automation and Technology PORTIA W. THOMPSON, EEO Programs Officer DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director ELLIOTT C. MCENTEE, Associate Director CHARLES L. HAMPTON, Director DAVID L. ROBINSON, Associate Director BRUCE M. BEARDSLEY, Deputy Director C. WILLIAM SCHLEICHER, JR., Associate Director GLENN L. CUMMINS, Assistant Director WALTER ALTHAUSEN, Assistant Director NEAL H. HILLERMAN, Assistant Director CHARLES W. BENNETT, Assistant Director RICHARD J. MANASSERI, Assistant Director ANNE M. DEBEER, Assistant Director ELIZABETH B. RIGGS, Assistant Director JACK DENNIS, JR., Assistant Director WILLIAM C. SCHNEIDER, JR., Assistant Director EARL G. HAMILTON, Assistant Director ROBERT J. ZEMEL, 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

68 Federal Reserve Bulletin • September 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

A69 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, San Francisco, California 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

A70 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- THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNC- NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. TIONS. 1974. 125 pp. 1972. 220 pp. Each volume, $3.00; 10 or more to one ANNUAL REPORT. address, $2.50 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or THE ECONOMETRICS OF PRICE DETERMINATION CONFER- $2.00 each in the United States, its possessions, Canada, ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 and Mexico; 10 or more of same issue to one address, pp. Cloth ed. $5.00 each; 10 or more to one address, $18.00 per year or $1.75 each. Elsewhere, $24.00 per $4.50 each. Paper ed. $4.00 each; 10 or more to one year or $2.50 each. address, $3.60 each. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE of Part I only) 1976. 682 pp. $5.00. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 BANKING AND MONETARY STATISTICS. 1941-1970. 1976. pp. $4.00 each; 10 or more to one address, $3.60 each. 1,168 pp. $15.00. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. ANNUAL STATISTICAL DIGEST 1973. 271 pp. $3.50 each; 10 or more to one address, 1971-75. 1976. 339 pp. $ 5.00 per copy. $3.00 each. 1972-76. 1977. 377 pp. $10.00 per copy. IMPROVING THE MONETARY AGGREGATES: REPORT OF THE 1973-77. 1978. 361 pp. $12.00 per copy. ADVISORY COMMITTEE ON MONETARY STATISTICS. 1974-78. 1980. 305 pp. $10.00 per copy. 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 1970-79. 1981. 587 pp. $20.00 per copy. each. 1980. 1981. 241 pp. $10.00 per copy. IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. 1981. 1982. 239 pp. $ 6.50 per copy. 1978. 170 pp. $4.00 each; 10 or more to one address, 1982. 1983. 266 pp. $ 7.50 per copy. $3.75 each. FEDERAL RESERVE CHART BOOK. Issued four times a year in ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— February, May, August, and November. Subscription Regulation Z) Vol. I (Regular Transactions). 1969. 100 includes one issue of Historical Chart Book. $7.00 per pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each year or $2.00 each in the United States, its possessions, volume $2.25; 10 or more of same volume to one Canada, and Mexico. Elsewhere, $10.00 per year or address, $2.00 each. $3.00 each. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one tion to the Federal Reserve Chart Book includes one address, $1.50 each. issue. $1.25 each in the United States, its possessions, THE BANK HOLDING COMPANY MOVEMENT TO 1978: A Canada, and Mexico; 10 or more to one address, $1.00 COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to each. Elsewhere, $1.50 each. one address, $2.25 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 the United States, its possessions, Canada, and Mexico; each; 10 or more to one address, $1.50 each. 10 or more of same issue to one address, $13.50 per year INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; or $.35 each. Elsewhere, $20.00 per year or $.50 each. 10 or more to one address, $1.25 each. THE FEDERAL RESERVE ACT, as amended through April 20, PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. 1983. with an appendix containing provisions of certain $13.50 each. other statutes affecting the Federal Reserve System. 576 NEW MONETARY CONTROL PROCEDURES: FEDERAL REpp. $7.00. SERVE STAFF STUDY. 1981. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ERAL RESERVE SYSTEM. REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- Truth in Leasing ed at least monthly. (Requests must be prepaid.) U.S. Currency Consumer and Community Affairs Handbook. $60.00 per What Truth in Lending Means to You year. Monetary Policy and Reserve Requirements Handbook. $60.00 per year. Securities Credit Transactions Handbook. $60.00 per year. STAFF STUDIES. Summaries Only Printed in the Federal Reserve Regulatory Service. 3 vols. (Contains all Bulletin three Handbooks plus substantial additional material.) $175.00 per year. Studies and papers on economic and financial subjects that Rates for subscribers outside the United States are as are of general interest. Requests to obtain single copies of follows and include additional air mail costs: the full text or to be added to the mailing list for the series Federal Reserve Regulatory Service, $225.00 per year. may be sent to Publications Services. Each Handbook, $75.00 per year. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTICOUNTRY MODEL, May 1984. 590 pp. $14.50 each. 114. MULTIBANK HOLDING COMPANIES: RECENT EVI- WELCOME TO THE FEDERAL RESERVE. DENCE ON COMPETITION AND PERFORMANCE IN PROCESSING BANK HOLDING COMPANY AND MERGER APPLI- BANKING MARKETS, by Timothy J. Curry and John T. Rose. Jan. 1982. 9 pp. CATIONS. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT ANNUAL 115. COSTS, SCALE ECONOMIES, COMPETITION, AND PROD- HUMAN RELATIONS AWARD DINNER, December 1982. UCT MIX IN THE U.S. PAYMENTS MECHANISM, by David B. Humphrey. Apr. 1982. 18 pp. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT DEDICATION CEREMONIES: FEDERAL RESERVE BANK OF SAN FRAN- 116. DIVISIA MONETARY AGGREGATES: COMPILATION, CISCO, March 1983. DATA, AND HISTORICAL BEHAVIOR, by William A. Barnett and Paul A. Spindt. May 1982. 82 pp. Out of RESTORING STABILITY. REMARKS BY CHAIRMAN PAUL A. VOLCKER, April 1983. print. CREDIT CARDS IN THE U.S. ECONOMY: THEIR IMPACT ON 117. THE COMMUNITY REINVESTMENT ACT AND CREDIT COSTS, PRICES, AND RETAIL SALES, July 1983. 114 pp. ALLOCATION, by Glenn Canner. June 1982. 8 pp. REMARKS BY CHAIRMAN PAUL A. VOLCKER, AT THE ANNU- 118. INTEREST RATES AND TERMS ON CONSTRUCTION AL DINNER OF THE JAPAN SOCIETY, June 1984. LOANS AT COMMERCIAL BANKS, by David F. Seiders. THE MONETARY AUTHORITY OF THE FEDERAL RESERVE, July 1982. 14 pp. May 1984. (High School Level.) 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- CONSUMER EDUCATION PAMPHLETS TIONS, by James V. Houpt and Michael G. Martinson. Short pamphlets suitable for classroom use. Multiple copies Oct. 1982. 18 pp. Out of print. available without charge. 121. REDLINING: RESEARCH AND FEDERAL LEGISLATIVE RESPONSE, by Glenn B. Canner. Oct. 1982. 20 pp. 122. BANK CAPITAL TRENDS AND FINANCING, by Samuel Alice in Debitland H. Talley. Feb. 1983. 19 pp. Out of print. Consumer Handbook to Credit Protection Laws 123. FINANCIAL TRANSACTIONS WITHIN BANK HOLDING The Equal Credit Opportunity Act and . . . Age COMPANIES, by John T. Rose and Samuel H. Talley. The Equal Credit Opportunity Act and . . . Credit Rights in May 1983. 11 pp. Housing 124. INTERNATIONAL BANKING FACILITIES AND THE EU- The Equal Credit Opportunity Act and . . . Doctors, Law- RODOLLAR MARKET, by Henry S. Terrell and Rodney yers, Small Retailers, and Others Who May Provide Inci- H. Mills. August 1983. 14 pp. dental Credit 125. SEASONAL ADJUSTMENT OF THE WEEKLY MONETARY The Equal Credit Opportunity Act and . . . Women AGGREGATES: A MODEL-BASED APPROACH, by David Fair Credit Billing A. Pierce, Michael R. Grupe, and William P. Cleve- Federal Reserve Glossary land. August 1983. 23 pp. Guide to Federal Reserve Regulations 126. DEFINITION AND MEASUREMENT OF EXCHANGE MAR- How to File A Consumer Credit Complaint KET INTERVENTION, by Donald B. Adams and Dale If You Borrow To Buy Stock W. Henderson. August 1983. 5 pp. If You Use A Credit Card 127. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Instructional Materials of the Federal Reserve System VENTION: JANUARY-MARCH 1975, by Margaret L. Series on the Structure of the Federal Reserve System Greene. The Board of Governors of the Federal Reserve System *128. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- The Federal Open Market Committee VENTION: SEPTEMBER 1977-OcTOBER 1981, by Marga- Federal Reserve Bank Board of Directors ret L. Greene. Federal Reserve Banks 129. U.S. EXPERIENCE WITH EXCHANGE MARKET INTER- Monetary Control Act of 1980 VENTION: OCTOBER 1980-OcTOBER 1981, by Margaret Organization and Advisory Committees L. Greene. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All 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. Try on. 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. Try on. 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. 139. SOME IMPLICATIONS OF FINANCIAL INNOVATIONS IN THE UNITED STATES, by Thomas D. Simpson and Patrick M. Parkinson. August 1984. 20 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

A73 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 Business expenditures on new plant and equipment, 34 FARM mortgage loans, 37 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 9, 10, 11, 30 Federal credit agencies, 31 CAPACITY utilization, 42 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 17 ownership of gross debt, 29 Federal Reserve Banks, 10 Receipts and outlays, 27, 28 Central banks, discount rates, 63 Treasury financing of surplus, or deficit, 27 Certificates of deposit, 20, 24 Treasury operating balance, 27 Commercial and industrial loans Federal Financing Bank, 27, 31 Commercial banks, 15, 20, 23 Federal funds, 3, 5, 16, 18, 19, 20, 24, 27 Weekly reporting banks, 18-20 Federal Home Loan Banks, 31 Commercial banks Federal Home Loan Mortgage Corporation, 31, 36, 37 Assets and liabilities, 17-19 Federal Housing Administration, 31, 36, 37 Business loans, 23 Federal Land Banks, 37 Commercial and industrial loans, 15, 20, 23 Federal National Mortgage Association, 31, 36, 37 Consumer loans held, by type, and terms, 38, 39 Federal Reserve Banks Loans sold outright, 19 Condition statement, 10 Nondeposit fund, 16 Discount rates (See Interest rates) Number, by classes, 17 U.S. government securities held, 4, 10, 11, 29 Real estate mortgages held, by holder and property, 37 Federal Reserve credit, 4, 5, 10, 11 Time and savings deposits, 3 Federal Reserve notes, 10 Commercial paper, 3, 22, 24, 35 Federally sponsored credit agencies, 31 Condition statements (See Assets and liabilities) Finance companies Construction, 42, 46 Assets and liabilities, 35 Consumer installment credit, 38, 39 Business credit, 35 Consumer prices, 42, 47 Loans, 18, 38, 39 Consumption expenditures, 48, 49 Paper, 22, 24 Corporations Financial institutions Profits and their distribution, 33 Loans to, 18, 19, 20 Security issues, 32, 62 Selected assets and liabilities, 26 Cost of living (See Consumer prices) Float, 4 Credit unions, 26, 38 (See also Thrift institutions) Flow of funds, 40, 41 Currency and coin, 17 Foreign banks, assets and liabilities of U.S. branches and Currency in circulation, 4, 13 agencies, 20 Customer credit, stock market, 25 Foreign currency operations, 10 Foreign deposits in U.S. banks, 4, 10, 18, 19 DEBITS to deposit accounts, 14 Foreign exchange rates, 64 Debt (See specific types of debt or securities) Foreign trade, 51 Demand deposits Foreigners Adjusted, commercial banks, 14 Claims on, 52, 54, 57, 58, 59, 61 Banks, by classes, 17-20 Liabilities to, 19, 51, 52-56, 60, 62, 63 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 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, 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 Prime rate, commercial banks, 22 WEEKLY reporting banks, 18-20 Producer prices, 42, 47 Wholesale (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

A75 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. Hen- Jacksonville 32231 Jerome P. Keuper James D. Hawkins Miami 33152 Sue McCourt Cobb Patrick K. Barron Nashville 37203 C. Warren Neel Jeffrey J. Wells New Orleans 70161 Sharon A. Perlis Henry H. Bourgaux CHICAGO* 60690 Stanton R. Cook Silas Keehn Edward F. Brabec Daniel M. Doyle Detroit 48231 Russell G. Mawby Roby L. Sloan ST. LOUIS 63166 W.L. Hadley Griffin Theodore H. Roberts Mary P. Holt Joseph P. Garbarini Little Rock 72203 Sheffield Nelson John F. Breen Louisville 40232 Sister Eileen M. Egan James E. Conrad Memphis 38101 Patricia W. Shaw Paul I. Black, Jr. MINNEAPOLIS 55480 William G. Phillips E. Gerald Corrigan John B. Davis, Jr. Thomas E. Gainor Helena 59601 Ernest B. Corrick Robert F. McNellis KANSAS CITY 64198 Doris M. Drury Roger Guffey Irvine O. Hockaday, 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

A76 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories April 1984 • MM M M M MM •MBIIMMM mHAWAII ma 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 LE46MO Opportunity Act LE4SING and .. . LE4SMG TRUTH IN UE4SING What Ituthln Lending Means ToYou The Equal Credit Opportunity ActP" ...andI YOU USE A CREDIT CARD Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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