greenbooks · September 18, 1972

Greenbook/Tealbook

Prefatory Note

The attached document represents the most complete and accurate version available based on original copies culled from the files of the FOMC Secretariat at the Board of Governors of the Federal Reserve System. This electronic document was created through a comprehensive digitization process which included identifying the bestpreserved paper copies, scanning those copies, 1 and then making the scanned versions text-searchable. 2 Though a stringent quality assurance process was employed, some imperfections may remain. Please note that some material may have been redacted from this document if that material was received on a confidential basis. Redacted material is indicated by occasional gaps in the text or by gray boxes around non-text content. All redacted passages are exempt from disclosure under applicable provisions of the Freedom of Information Act.

In some cases, original copies needed to be photocopied before being scanned into electronic format. All scanned images were deskewed (to remove the effects of printer- and scanner-introduced tilting) and lightly cleaned (to remove dark spots caused by staple holes, hole punches, and other blemishes caused after initial printing).

A two-step process was used. An advanced optical character recognition computer program (OCR) first created electronic text from the document image. Where the OCR results were inconclusive, staff checked and corrected the text as necessary. Please note that the numbers and text in charts and tables were not reliably recognized by the OCR process and were not checked or corrected by staff.

Content last modified 6/05/2009.

CONFIDENTIAL (FR)

SUPPLEMENT CURRENT ECONOMIC AND FINANCIAL CONDITIONS

Prepared for the Federal Open Market Committee

September 15,

By the Staff Board of Governors of the Federal Reserve System

1972

SUPPLEMENTAL NOTES

The Domestic Economy

Industrial production.

The Board's index of industrial

production rose 0.5 percent further to 114.3 (1967=100) in August, a level 8.2 percent above a year earlier.

The July index has been

revised up slightly to 113.7 and the June index up to 113.4.

The August

increase reflected widespread gains in output among final products and materials, with business equipment, defense equipment and steel especially strong.

(Very confidential until release September 18

afternoon.) Sales of new domestic-type autos in the first 10 days of September were at a 6.5 million unit annual rate, down 30 percent from the corresponding periods a month and a year earlier.

The drop

in sales was due in large part to the reduced level of stocks, the lowest since December 1970 after the GM strike, and to the impending sales of 1973 models at 1972 prices--few of which have been pre-sold before their introduction later this month. Personal income in August rose $6.9 billion to a seasonally adjusted annual rate of $939.8 billion.

This followed a gain of $10

billion now shown for July--the magnitude of which reflected large capital losses incurred in the floods in the Northeast being charged against proprietors' and rental incomes in June.

Apart from proprietors'

and rental income personal income rose $6.4 billion in August, compared to $3.2 billion in July.

-2Wage and salary disbursements rose by $5 billion, or 9.6 percent annual rate, and accounted for most of the August increase in personal income.

Manufacturing payrolls rose $2 billion, following a

small decline in July.

Increases in employment, hours, and hourly

earnings contributed to the advance, with the latter accounting for more than half the rise.

PERSONAL INCOME (Billions of dollars; seasonally adjusted, annual rates)

June Total Wage and salary disb. Commodity-producing Distributive Services Government Proprietors' income Rental income of persons Other non-wage income

1972 July

August

Net Change July 1972Aug. 1972

922.9

932.9

939.8

6.9

624.0 223.5 151.4 115.5 113.6 71.6 21.5 241.1

625.7 222.4 151.9 116.8 134.5 74.3

630.7 225.2 152.8 117.1 135.7 74.9 25.9 244.0

5.0 2.8 .9 .2 1.2 .6 .1 1.4

25.8 242.6

Less: Personal contributions for social insurance

35.3

35.5

35.7 35.7

.2 .2

- 3 The Domestic Financial Situation Capital markets.

Yields on new corporate bond issues

started to rise again this week after several slow-moving recent issues were freed from price restrictions, resulting in upward yield adjustments on these bonds of 6 to 10 basis points.

Dealers are now in a

better technical position, since syndicate inventories are at a low level and secondary positions have been reduced in recent weeks as yields on seasoned issues rose above returns on newly issued securities of comparable rating. Data from the most recent Survey of State and Local Long-term Borrowing Anticipations and Realizations indicate that as of June 30, 1972 such government units planned to issue $6.0 billion of long-term bonds in the third quarter.

On the basis of actual sales for July and

August and scheduled issues in September, it appears that long-term borrowing may be as much as $500 million below anticipations.

However,

the October calendar has built up rapidly during the past week, and some of these issues may have originally been planned for the third quarter.

-4INTEREST RATES

1972 Highs

Lows

Aug. 14

Sept. 14

Short-Term Rates Federal funds (wkly. avg.)

4.90 (8/30)

3-month Treasury bills (bid) Comm. paper (90-119 day) Bankers' acceptances Euro-dollars CD's (prime NYC) Most often quoted new

4.74 5.00 5.12 5.94

6-month Treasury bills (bid) Conm. paper (4-6 mo.) Federal agencies CD's (prime NYC) Most often quoted new

(9/11) (9/14) (9/14) (3/27)

3.18 (3/1)

2.99 3.75 3.83 4.62

4.69

(2/11)

3.87

(2/29) (2/23)

4.75

(3/8)

(8/9)

4.69 (9/13)

4.70 5.00 5.12 5.38

5.00 5.44

5.00 (9/13)

3.50 (2/23)

4.62

5.15 (9/14)

5.12 (9/14) 5.45 (9/11)

3.35 (1/10) 3.88 (3/3) 3.79 (2/17)

4.44 4.75 4.78

5.38 (9/13)

3.88 (2/23)

5.00

5.47 (9/14) 5.76 (9/14)

3.57 (1/8) 4.32 (1/17)

4.74 5.11

5.62 (9/13) 3.20 (9/14)

4.62 (1/19) 2.35 (1/12)

5.38 2.90

Treasury coupon issues 5-years 20-years

6.30 (9/14) 6.04 (9/14)

5.47 (1/13) 5.95 (1/14)

5.96 5.93

6.30 6.04

Corporate Seasoned Aaa Baa

7.37 (4/24) 8.29 (1/3)

7.14 (1/17)

8.09 (9/14)

7.19 8.22

7.23 8.09

7.42 (4/14)

6.86 (1/14)

7.24

(8/9)

7.32

Municipal Bond Buyer Index

5.54 (4/13)

4.99 (1/13)

5.24

(8/9)

5.38

Mortgage--implicit yield in FNMA auction 1/

7.63 (9/6)

7.54 (3/20)

7.63

(8/9)

7.63 (9/6)

1-year Treasury bills (bid) Federal agencies CD's (prime NYC) Most often quoted new Prime municipals

(8/9)

5.00 (9/13)

5.15 5.12 5.41 (8/9)

5.38 (9/13) 5.47 5.76

(8/9) (8/11)

5.62 (9/13) 3.20

Intermediate and Long-Term

New Issue Aaa

Yield on short-term forward commitment after allowance for commitment fee and required purchase and holding of FNMA stock. Assumes discount on 30-year loan amortized over 15 years.

CORRECTIONS Page I-5 1972 Proj.

1973 Proj.

III

96.8

113.6

100.0

106.0

93.2

106.7

95.5

99.7

226.4 -24.8

243.8 -28.9

226.3 -17.5

232.7 -45.5

Corporate profits before tax

16.2

17.4

29.6

24,0

Federal government receipts and expenditures (N.I.A. basis) Receipts

13.7

7.7

1.6

11.3

Corporate profits before tax Corp. cash flow, net of div. (domestic) Federal government receipts and expenditures (N.I.A. basis) Receipts Surplus or deficit

1972 Proj. IV

Page I-6

Page 11-23 FEDERAL BUDGET AND FEDERAL SECTOR IN NATIONAL INCOME ACCOUNTS Table. The National Income Sector figures should be as follows in dollars: Calendar Year 1972 1/ Surplus/deficit Receipts

Fiscal 1973 e/ F.R. Board

billions of

F.R.o. Staff Estimates 1973 1972 I II IV III

-24.7

-35.3

-175

-45.5

-38.3

-39.9

226.5

231.0

226.3

232.7

234.2

230.7

Page I-6 Industrial production increase in 3.5 percent annual rate, not 7.4.

the third quarter 1972 should be

A-1 SUPPLEMENTAL APPENDIX A QUARTERLY SURVEY OF BANK LENDING PRACTICES * The August 15 Survey of Changes in Bank Lending Practices indicated that most banks expected some increase in loan demands over the next three months, and some banks have already tightened terms and conditions of lending. As in previous surveys, however, banks showed a greater willingness to make term and consumer installment loans -a fact which may be connected with banks' ample holdings of liquid assets. The increased desire to make term loans, furthermore, appears to be part of a continuing bank response to the pressures exerted by customers' use of capital market financing as an alternative to bank borrowing. More than half of the 125 respondents participating in the survey reported continued strengthening in loan demand since the date of the last survey in May. (See Table 1.) Nearly three-fourths of the participants, moreover, anticipated even stronger demand through November, and none expected a decline in lending activity. With the pick-up in business activity, some banks had adopted firmer interest rate policies, based on the one-fourth of a percentage point increase in the prime rate during the interval covered by the current survey. A few of the banks (about 10 per cent) had also tightened balance requirements and standards of credit worthiness. In additionabout 10 per cent of the respondents indicated applications from new customers were reviewed somewhat more critically, while all loan applications were screened more closely with an eye toward the applicants value as a depositor or source of collateral business. Segregation of responses by size of banks reflected stronger loan demands experienced at smaller banks (with less than $1 billion A greater proportion of smaller banks (See Table 2.) in deposits). raised interest rates in lending to businesses and nonbank financial institutions. These banks were more critical of the borrower's potential value as a source of collateral business when reviewing applications for loans; balance requirements for finance companies were more stringent. Smaller banks, though, were more willing to add to their portfolios of consumer loans. Larger banks, however, were more aggressive in expanding brokers' loans. * Prepared by Marilyn Barron, Research Assistant, Banking Section, Division of Research and Statistics.

A-

In contrast to some firming of loan policies, a greater willingness to make term loans was noted by nearly 20 per cent of respondents, some with easier terms than three months previously. A similar proportion of the respondents indicated a more favorable posture toward installment loans to consumers. A smaller proportion indicated some increase in their willingness to make single family mortgages. The increased willingness to make term loans on easier terms has been a spreading phenomenon among respondents that has gone on now for at least four quarters, with some banks in August indicating that they were forced by competition to adopt such policies. Even though corporate security offerings in the capital markets have moderated this year, they remain quite large by historical standards. Apparently, banks have become concerned about the competitive inroads made in their markets and have been attempting to recapture customers by offering loans similar to an intermediate-term security (e.g. no amortization of principal and an upper bound on a floating interest rate). It should be noted, however, that term loans at large banks have shown only modest increases recently, and remain below the levels reached in the spring of 1971. This could reflect the fact that fixed rate security issues to nonbank investors appear more attractive at this time to borrowers than a term loan, the rate on which can rise -even if the amount of the permitted increase is limited.

NOT FOR QUOTATION OR PUBLICATION

PAGE A3

TABLE 1

QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ AUGUST 15, 1972 COMPARED TO THREE MONTHS EARLIER) (STATUS OF POLICY ON (NUMBER OF BANKS & PERCENT OF TOTAL BANKS REPORTING) MUCH STRONGER

TOTAL BANKS

PCT

BANKS

PCT

MODERATELY

STRONGER BANKS

PCT

ESSENTIALLY UNCHANGEO BANKS

PLT

MODERATELY WEAKER BANKS

PCT

MUCH WEAKER BANKS

PCT

STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED TO THREE MONTHS AGO

125

100.0

52.0

40.8

ANTICIPATED DEMAND IN NEXT 3 MONTHS

125

100.0

68.8

28.0

ANSWERING QUESTION BANKS

PCT

MUCH FIRMER POLICY BANKS

PCT

MODERATELY FIRMER PULICY

ESSENTIALLY UNCHANGED POLICY

MODERATELY EASIER POLICY

BANKS

PCT

MUCH EASIER POLICY BANKS

PCT

LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS: INTEREST RATES CHARGED

100.0

1.6

39.2

56.8

2.4

0.0

COMPENSATING OR SUPPORTING BALANCES

100.0

0.8

10.4

83.2

5.6

0.0

STANDARDS OF CREDIT WORTHINESS

100.0

0.0

8.0

91.2

0.8

0.0

MATURITY OF TERM LOANS

100.0

0.0

4.8

76.

18.5

0.0

ESTABLISHED CUSTOMERS

100.0

0.0

2.4

92.8

4.8

0.0

NEW CUSTOMERS

100.0

0.8

9.7

83.9

5.6

LOCAL SERVICE AREA CUSTOMERS

100.0 10.0

0.0

2.4

93.6

4.0

0.0

NONLOCAL SERVICE AREA CUSTOMERS

100.0

2.4

8.8

82.4

6.4

0.0

REVIEWING CREDIT LINES OR LOAN APPLICATIONS

1/ SURVEY OF LENDING PRACTICES AT 125 LARGE BANKS REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS OF AUGUST 15, 1972.

NOT FOR QUOTATION OR PUBLICATION

TABLE

ANSWERING QUESTION HANKS

PCT

PAGE A4

I (CONTINUED)

MUCH FIRMER POLICY BANKS

PCT

MODERAT LY FIRMER POLICY

ESSENTIALLY UNCHANGED POLICY

MODERATELY EASIER POLICY

BANKS

PCT

BANKS

PLT

PGr

MUCH EASIER POLICY BANKS

PCT

FACTORS RELATING TO APPLICANT 2/ VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS

125

100.0

3.2

8. 0

108

86.4

INTENDED USE OF THE LOAN

125

100.0

0.8

3.2

119

95.2

LENDING TO "NONCAPTIVE" FINANCE COMPANIES TERMS AND CONDITIONS: INTEREST RATES CHARGED

100.0

26.4

72.0

L.6

COMPENSATING OR SUPPORTING BALANCES

100.0

2.4

118

94.4

3.2

ENFORCEMENT OF BALANCE REQUIREMENTS

100.0

6.4

114

91.2

2.4

ESTABLISHING NEW OR LARGER CREDIT LINES

100.0

8.0

78.4

ANSWERING QUESTION BANKS

PCT

CONSIDERABLY LESS WILLING BANKS

PCT

11.2

MODERATELY LESS WILLING

ESSENTIALLY UNCHANGED

MOOERATELY MORE NILLING

BANKS

PCT

BANKS

POT

PLT

CONSIDERABLY MURE WILLING HANKS

PCT

WILLINGNESS TO MAKE UTHER TYPES OF LOANS

C.O

10.7

0 0.0

TERM LOANS TO BUSINESSES

100.0

0.0

6.4

76.0

17.6

CONSUMER INSTALMENT LOANS

100.0

0.8

0.0

79.7

18.1

SINGLE FAMILY MORTGAGE LOANS

100.0

0.0

4.9

103

84.4

MULTI-FAMILY MORTGAGE LOANS

100.0

1.7

6.6

106

87.6

4.1

ALL OTHER MORTGAGE LOANS

100.0

2.5

4.1

81.8

11.6

0.0 0.0

PARTICIPATION LOANS WITH CORRESPONDENT BANKS

123

100.0

114

92.7

5.7

LOANS TO BROKERS

121

100.0

109

90.1

6.6

FOR THESE FACTORS, FIRMER MEANS THE FACTORS WERE LONSIDEREU MORE CREDIT REQUESTS, AND EASIER MEANS THEY WERE LESS IMPORTANT.

IMPORTANT

IN MAKING DECISIONS IUO

APPRUVING

NOT FOR QUOTATION OR PUBLICATION

TABLE 2

PAGE A5

COMPARISON OF QUARTERLY CHANGES IN BANK LENDING PRACTICES AT BANKS GROUPED BY SIZE OF TOTAL DEPOSITS 1/ (STATUS OF POLICY ON AUGUST 15, 1972, COMPARED TO THREE MONTHS EARLIER) (NUMBER OF BANKS IN EACH COLUMN AS PER CENT OF TOTAL BANKS ANSWERING QUESTION)

SIZE TOTAL

OF BANK

MUCH STRUNGER $1 & OVER

UNDER $1

TOTAL DEPOSITS IN BILLIONS

MODERATELY STRONGER

ESSENTIALLY UNCHANGED

$t & OVER

$1. UVER

UNDER $1

UNDER I$

MODERATELY WEAKER $1 & OVER

UNDER St

MUCH WEAKER $1 C UVER

UNDER $1

$1 & OVER

UNDER $1

100

STRENGTH OF DEMAND FOR CCMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FOR BANK'S USUAL SEASONAL VARIATION) COMPARED

TO THREE MONTHS AGO

ANTICIPATED DEMAND IN NEXT

I MONTHS

TOTAL

MUCH FIRMER

MODERATELY FIRMER

ESSENTIALLY UNCHANGED

MODERATELY

$1 & OVER

$1 E OVER

$1 & UVER

EASIER

MUCH EASIER

St & OVER

$1 & OVER

UNDER $1

INTEREST RATES CHARGED

100

COMPENSATING OR SUPPORTING BALANCES

100

STANDARDS OF CREDIT WORTHINESS

100

MATURITY OF TERM LOANS

100

ESTABLISHED CUSTOMERS

100

NEW CUSTOMERS

100

LOCAL SERVICE AREA CUSTOMERS

100

NONLOCAL SERVICE AREA CUSTOMERS

100

S1 & OVER

UNDER $1

UNDER

UNDER $1

UNDER SL

LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS:

REVIEwING CREDIT LINES OR LOAN APPLICATIONS

54 LARGE BANKS (DEPOSITS OF Si BILLION OR MORE) AND 1/ SURVEY OF LENDING PRACTICES AT l$ BILLION) REPORTING IN THE FEDERAL RESERVE QUARTERLY INTEREST RATE SURVEY AS UO

71 SMALL HANKS (UEPUSITS AUGUST lth 1972.

OF LESS THAN

TABLE 2

NOT FOR QUOTATION OR PUBLICATION

OF HANK MUCH FIRMER POLICY

SIZE NUMBER ANSWERING QUESTION $1 t OVER FACTORS

UNDER $1

$1 & OVER

UNDLR $1

TOTAL DEPOSITS IN BILLIONS -MODERATELY ESSENTIALLY MODERATELY EASIER FIRMER UNCHANGED POLICY POLICY POLICY $1 & OVER

UNDER $1

SL & OVER

UNDER $l

$1 & OVERK

UNDER $t

MULH EASIER POLICY $1 & UVER

UNDER S1

RELATING TO APPLICANT 2/

VALUE AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS

100

INTENDED

100

LENDING

PAGE A6

(CONTINUED)

USE

THE LOAN

TO "NONCAPTIVE"

FINANCE

COMPANIES

TERMS AND CONDITIONS: INTEREST

RATES

CHARGED

COMPENSATING OR ENFORCEMENT OF

SUPPORTING BALANCES BALANCE REUUIREMENrS

ESTABLISHING NEW OR LARGER

CREDIT

LINES

NUMBER ANSoERING QUtSTION $1 & OVER WILLINGNESS TO MAKE TERM LOANS

OTHER TYPES

TO BUSINESSES

UNDER S1

CONSIDERABLY LESS WILLING $1 &

UNDER

OVER

MODERATELY LESS WILLING

ESSENTIALLY UNCHANGED

$1 & OVER

UNDER $1

UNDER S1

MODERATELY MORE WILLING S1 E OIVR

OF LOANS 100

100

INSTALMENT LOANS

100

FAMILY MORTGAGE LOANS

10U

100

PARTICIPATION LOANS WITH CORRESPONDENT BANKS

100

LOANS TO

100

IOU

CONSUMER SINGLE

MULTI-FAMILY MORTGAGE ALL OTHER

LOANS

MORTGAGE LOANS

BROKERS

UNDER I

2/ FOR THESE FACrORS, FIRMER MEANS THE FACTORS WERE CONSIDERED MORE CREDIT REQUESTS. AND EASIER MEANS THEY WERE LESS IMPORIANT.

IMPORIANT

IN MAKING DECISIONS FOR

APPROVING

CONSIDERABLY MURk WILLING St & UVER

UNDER $I

NOT

FOR QUOTATION

PUBLICATION

TABLE

PAGE A7

QUARTERLY SURVEY OF CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS IN THE U.S. 1/ AUGUST 15, 1972 COMPARED TO THREE MONTHS EARLIER STATUS OF POLICY ON (NUMBER OF BANKS)

ALL DSTS

BOSTON

NEW YORK TOTAL CITY OUTSIDE

PHILADEL.

CLEVE- RICHMONO LAND

ST. ATLAN- CHICAGO LOUIS TA

UALLAS

MINNEAPOLIS

KANS. CITY

0 4

SAN FRAN

STRENGTH OF DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS (AFTER ALLOWANCE FUR BANK'S USUAL SEASONAL VARIATION) COMPARED TO 3 MONTHS AGO

125 3 65 51 6 0

MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGED MODERATELY WEAKER MUCH WEAKER ANTICIPATED DEMAND NEXT THREE MONTHS

1 10 O 1 0

1 3 6 0 0

0 12 1 2 0

0 5 4 0 0

0 1 2 0 0

U 5 1 0 0

0 7 4 0 0

1 11 0 u 0

1 4 5 0 0

2 12 1 0 0

U0 7 2 U 0

1 3 6 1 C

U 3 3 0 0

0 2 9 0 0

0 4 8 0 0

0 4 6 0 0

1 3 11

1 3 6 1 0

0 0 6 0 0

0 1 8 2 0

0 1 11 0 0

0 1 9 0 0

O 5 3 0 0

0 12 6 2 0

0 5 2 2 0

0 7 4 0 0

0 2 4 0 0

0 3 8

0 6 2 0 0

0 13 7 0 0

0 7 2 0 0

u 6 5 0 0

0 5 3 0 0

1 5 13 1 0

0 2 7 0 0

0 0 8 0 0

1 3 14 2 0

0 0 8 1 0

1 4 7

0 U

2 1 O 0

0 5 4 0 0

0 5 4 O 0

0 9 4 0 0

0 2 1 0 U

0 4 5 0 o

0 5 4 0 0

0 7

0 5 3 1 0

0 1 14 0 0

0 1 8 U 0

0 0 3 0 0

0 2 1 0 0

0 2 7 0 0

0 1 9 3 0

125

MUCH STRONGER MODERATELY STRONGER ESSENTIALLY UNCHANGDL MODERATELY WEAKER MUCH WEAKER

4 86 35 O 0

LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONDITIONS INTEREST RATES CHARGFD

125

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY COMPENSATING BALANCES

SURVEY OF LENDING PRACTICES AUGUST 15, 1972. AS OF

125

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY

2 49 71 3 0

1 13 104 7 0

AT 125 LARGE BANKS REPORTING

IN THE FEDERAL RESERVE UUARTERLY

INTEREST RATE SURVEY

NOT

FOR QUOTATION OR PUBLICATION

TABLE

ALL OSTS

BOSTON

NEW YORK TOTAL CITY OUTSIDE

PAGE A8

(CONTINUED)

PHILADEL.

CLEVELAND

RICHMONO

ATLAN- CHIAGO TA

ST. LOUIS

MINNE- KANS. LITY APOLIS

DALLAS

SAN FRAN

LENDING TO NONFINANCIAL BUSINESSES TERMS AND CONOITIONS STANDARDS

OF CREDIT

WORTHINESS

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY MATURITY OF TERM

LOANS

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATEEY EASIER POLICY MUCH EASIER POLICY REVIEWING CREDIT

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY

0 6 0 0

0 0 11 0 0

0 1 IL 0 0

0 2 8 0 U

1 13 1 0

0 2 9 0 0

0 0 4 2

0 1 9 1

0 U 12 0 0

0 U 9 1 0

0 0 9 0 O

0 0 11 0 0

0 1 5 U

0 0 9 2 0

0 0 12 0 0

J 2 15 2 0

U 0 8 0 0

O 2 7 2 0

0 1 5

O 2 7 2 0

0 0U 20 0 0

0 0 11 0 0

0 U 9 2 1

0 0 8 0 0

0 2 18 0 0

0 9 0 0

9 0 0

0 0 7 1 0

0 2 12 5

0 0 3 5 0

0 0 8 0 0

U 0 20 0 0

0 0 8 0 0

0 2 1 0 0

0 0 3 0 0

0 1 B O 0

0 0 9 0 0

0 1 12 U 0

0 L 12 2 0

0 8 1 0

0 0 3 0 0

0 0 7 2 0

0 O 6 3 0

6 5 0

0 0 9 1 0

0 0 15 0 0

U 1 8 U 0

0 0 3 0 0

0 0 9 U C

0 0 8 1 0

0 1 10 2 0

O 0 12 0 0

1 1 8 0 0

0 0 15 0 0

U 2 7 0 0

0 0 0 U

u 1 1 1 U

0 0 11 1 0

0 0 10 0 0

0 0 15

0 1 8 0 0

U 0 3 0 0

u 0 9 0 0

124 0 6 9! 23 O

125 0 3 116 6 0 124

NEW CUSTOMERS MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY SERVICE

0 10 114 1 0

LINES OR LOANS

ESTABLISHED CUSTOMERS

LOCAL

125

AREA CUSTOMERS

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY

1 12 104 7 G

0 0

U 1 8 0 U

0 2 9 2

125 0 3 117 5 0

9 0 O

1 5 0 0

0 0

0U 0 9 0 0

1 to 2 U

NOT FOR

QUOTATION OR

PUBLICATION

TABLt 3

ALL DSTS

BOSFUN

TOTAL

NEW YORK CITY OUTSIDE

PAGE A9

ICONTINUEfD)

PHILADEL.

LLEVELAND

RICHMUND

ST. LOUS

ATLAN- CHICTA AGO

MINNEAPOLIS

KANS. LITY

0ALLAS

0 U

1 0 7 .

0 0 9 U O

0 1 9 3 0

SAN FRAN

LENDING TU NONFINANCIAL BUSINESSES REVIEWING CREDIT NONLOCAL

LINES UR LOANS

SERVICF

AREA

CUST

MUCH FIRMER POLICY MODERATELY FIRMER POLICY POLICY FSSENTIALLY UNLHANG;F'Vt13RATELY FASIER POLICY MUCH ASIfR POLICY

FACTORS Rt-LATING TO APPLICANT

MUCH FIRMFR POLICY MOOERATELY FIRMER POLICY ESSENTIAl.Y UNCHANGEO POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY INTENDED USE

OF LOAN

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH EASIER POLICY

LENDING FINANCE TF

0 3 15

0 0 9

0 3 6

8 O

0 0

2 O

U O

2 O

O 0 8 0 0

C 2 18 C U

0 0 9 0

0 O 8 0 0

0 1 19 0 0

0 3 5 0 0

0 5 14 1 0

0 1 5

0 1 11

0 0 9 2 O

0 2 9 O 0 O

0 6 U U

0 L 9 1 0

0 0 9 0 0

0 1 10 0 0

0 0 6 0 0

0 2 7 0 0

0 3 7 1 0

0 2 4

1 1 8

O O

0 2 13 O 0

1 1

1 1 10 O 0

1 1 8 O 0

1 U 14 0 0

0 2 7 0 0

O U 3 U 0

1 0 8 0 U

O 2 7 0 0

O 1 10 2 0

0 0 LL 0 C

0 0 1Z

1 U 9 0 0

0 0 15 0 0

0 1 a 0 0

UO 0 3 0 0

0 9 0 O

U 1 7 1 O

0 1 12 0 0

0 1 10

0 4 8 0

0 2 13 0 0

0 5 4

U 3 7 0 0

0 0 3 0 0

0 3 6 0 0

0 3 10 0 0

125 4 10 108 3 0 125 1 4 119 1 O

0 0

TJ "IiCNCAPTIVE" COMPANIES AND

INTEREST

CONDITIONS RATES

CHARGED

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELYEASIER POLICY MUCH EASIER POLICY

0 1 7

VALUf- AS DEPOSITOR OR SOURCE OF COLLATERAL BUSINESS

E n

3 11 103

125 0 33 90 2 0

FOR THESE FACTORS, FIRMER MEANS THE FALTORS CREDIT REQUESTS. AND EASIER MEANS THEY WERE

WERE CONSIDERED MORE LESS IMPORIANT.

0 0

IMPORTANT

IN MAKING DECISIONS FUR

APPROVING

0 2 6 1 0

NOT FOR QUOTATION OR PUBLICATION

TABLE

ALL DSTS LENDING FINANCE

NEW YORK TOTAL CITY OUTSIDE

PAGE A10

ICONTINUEUI

PHILADCL.

CLEVELAND

RICHMOND

ATLANFA

CHICAbU

0 12 0 0

0 1 9 0 0

0 O 13 2 0

MINNEAPULIS

KANS. CITY

DALLAS

SAN FRAN

0 0 9 0

U 0 3 0 0

0 0 8 1 O

O 0 9 0 U

O 1 12 0 O

bl. LOUIS

TO "NONCAPTIVE" COMPANIES

TERMS AND SIZL

BUSTUN

CONDITIONS:

CF COMPENSATING BALANCES

125 O 0 8 0 O

U 1 18 1 0

0 0 9 0 0

0 1 9 1 0

0 0 6 0 O

0 0 11 0 O

0 8 114

0 0 8

0 3 16

0 U 9

3 0

0 0

1 0

0 0

0 O 6 U 0

0 0 11 O 0

0 0 12 U

0 1 9 U U

0 1 13 I O

U 1 R U

0 0 3 U O

MODELATELY EASIER POLICY MUCH FAS-IFR POLICY

0 3 7 1 0

1 8 0 O

U U 9 O O

1 11 1 0

ESTABLISHING NEW OR LARGER CREDIT LINES

125 0 0 7 1 0

0 2 16 2 0

0 O 9 0 0

0 2 7 2 0

0 1 5 0 0

0 2 7 2 0

0 1 11 0 0

0 0 10 0 0

1 1 11 2 0

1 1 6 1 o

0 0 3 0 0

1 0 6 2 0

0 0 7 2 o

0 2 9 2 0

0 0 7 1 0

C 2 L6 2 U

0 0 8 1 0

0 2 8 1 0

0 0 4 2 0

0 1 7 3 J

0 0 LO 2 0

0 0 9 1 0

0 1 13 1 O

0 3 6 U u

0 U0 3 0 u

0 0 6 3 0O

O 0 7 1 0

C 0 17 1 0

0 0 7 0 0

0 0 10 1 0

0 O

0 O 9b 2 0

0 UO 8 1 1

1 O 11 3 0

0 O 6 3

o J 3 U u

0 0

8 1 0

9 4 0

MUCH FIRMER POLICY MODERATELY FIRMFR POLICY ESSENTIALLY UNCHANGED POLICY MODERATELYEASIER POLICY MUCH EASIER POLICY ENFORCEMENT OF BALANCE REQUIREMENT MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED PULICY

MUCH FIRMER POLICY MODERATELY FIRMER POLICY ESSENTIALLY UNCHANGED POLICY MODERATELY EASIER POLICY MUCH FASIER POLICY

wILLINGNFSS TO MAKF TYPES IIF LOANS TERM LOAnS

125

3 10 98 14 0

OTHER

BUSINESSES

CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLINC CONSIDERABLY MORE WILLING CONSUMER

O 3 118 4 0

INSTALMENT LOANS

CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORF WILLING

125 0 8 95 22 u

1 2 u

123 1 O 98 23 1

1 0

10 2 u

NOT FOR QUOTATION OR PUBLICATION

PAGE All

TABLE 3 (CONTINUED)

ALL DSTS

BOSTON

NEW YORK TOTAL CITY OUTSIDE

PHILADEL.

CLEVE- RICHLAND MONO

ST. ATLAN- CHICAGO LOUIS TA

MINNE- KANS. CITY APOLIS

DALLAS

SAN FRAN

WILLINGNESS TO MAKE OTHER TYPES OF LOANS SINGLE FAMILY MORTGAGE LOANS

122

CONSIOERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORF WILLING CONSIDERABLY MORE WILLING

0 6 103 13 0

MULTIFAMILY MORTGAGE LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING ALL OTHER MORTGAGE LOANS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING PARTICIPATION LOANS WITH CORRESPONDENT BANKS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING LOANS TO BROKERS CONSIDERABLY LESS WILLING MODERATELY LESS WILLING ESSENTIALLY UNCHANGED MODERATELY MORE WILLING CONSIDERABLY MORE WILLING

NUMBER OF BANKS

0 0 8 0 0

0 1 15 1 0

0 0 5 1 0

0 1 10 0 0

0 0 6 0 0

0 1 6 4 0

0 1 10 1 0

0 0 9 1 0

0 0 15 0 0

0 0 6 3 0

0 0 3 0

0 0 8 0 0

1 1 13 1 0

0 0 5 1 0

1 1 8 0 0

0 0 6 0 0

0 1 10 0 0

0 1 10 1 0

0 0 10 0 0

0 2 13 0 0

0 1

0 0

0 1 7 0 0

1 1 14 1 0

0 0 5 1 0

1 1 9 0 0

0 5 1 0

0 0 8 0 0

0 1 18 1 0

0 0 9 0 0

0 0 8 0 0

0 0 7 2 0

0 I 8 0 0

0 2 10 I 0

1 0 d 0 0

0 2 9 2 0

121 2 8 106 5 0

1 0

0 0

0 0 9 0 0

0 0 7 2 0

0 0 2 1 0

0 0 8 1 0

1 0 8 0 0

0 1 10 2 0

3 0 U

0 0 7 2 U

0 0 7 1 U

0 1 12

0 0 3 0 0

0 0 7 U 0

0 0 8 0 0

0 0 10 3 0

121 3 5 99 14 0

9 1 0

1 9 1 0

10 0 0

1 0 10 4 0

9 1 O

0 0 6 0 0

0 0 11 0 0

0 0 9 1 0

0 13 2 0

00 0 9 0 0

0 1 10 0 0

0 1 5 0 0

0 0 9 2 0

0 1 9 2 0

0 0 9 1 0

1 0 14 0 0

0 0 9 0 0

0 1

123 0 2 114 7 O

121 1 3 109 8 0

125

0 0 8 0 0

0 1 18 0 0

Cite this document

APA

Federal Reserve (1972, September 18). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19720919_part1

BibTeX

@misc{wtfs_greenbook_19720919_part1,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1972},
  month = {Sep},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19720919_part1},
  note = {Retrieved via When the Fed Speaks corpus}
}