greenbooks · August 19, 1974

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.

1

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).

2

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

August 16, 1974

By the Staff Board of Governors of the Federal Reserve System

SUPPLEMENTAL NOTES

The Domestic Economy Construction and real estate.

Seasonally adjusted private

housing starts, which had increased in June,

dropped sharply in July to an

annual rate of 1.34 million units--the lowest rate since May 1970.

Starts

of all types of units were down, although the already reduced rate of multi-family starts was especially weaker than a month earlier.

While

all regions shared in the decline, starts in the Northeast were substantially lower than in June.

Residential building permits also declined in

July,

the fourth consecutive month-to-month decrease, and reached the lowest level in

7 years. Despite an increase in single-family unit completions in June,

total completions of new housing units in the second quarter slowed further to an annual rate of about 1.7 million units,

their lowest since mid-1971.

However, the backlog of dwellings under construction continued relatively high,

totaling 1.5 million units at the end of June. Mobile home shipments edged down further in June, and, in the

second quarter, shipments were 32 percent below the first quarter 1973 peak. New home prices in

the second quarter of 1974 continued to rise.

The Census Bureau's price index of new single-family homes sold, which adjusts for differences in house characteristics, increased to 157 percent of the 1967 average--9 percent above a year earlier, but somewhat less than the 11 percent year-over-year increase in the second quarter of 1973.

-2NEW HOUSING UNITS (Seasonally adjusted annual rates, in millions of units)

1974 June(p) July(p)

Percent change in July from: Month ago Year ago

QI

QII( p)

Permits (r)

1.34

1.17

1.11

1.04

-

6

- 43

Starts

1.63

1.5 6

1.59

1.34

- 16

- 38

.94 .69

.988 .58

1.01 .58

7 - 32

- 24 - 57

Under construction 1/

1.56

1.4 8

1.48

n.a.

-

2

Completions

1.90

1.7 3

1.82

n.a.

+

8 2/

.46

.44

.44

n.a.

1-family 2- or more-family

MEMO: Mobile home shipments 1/ 2/

.94 .39

/

- 12 2/ - 16 2/

- 27 2/

Seasonally adjusted, end of period. Percent changes based on June.

Sales of new domestic-type autos in the first 10 day period of August were at a seasonally adjusted annual rate of 9.9 million units, 5 percent above the same period a year ago.

This was the second consecutive

10 day period sales were above those of last year and is attributed to the closing of incentive contests at Chevrolet and borrowing of sales from months ahead as consumers try to beat the big price increases on 1975 models.

In July this year, the sales rate was 8.2 million units; in August

last year, the rate was 9.5 million units.

-3The Domestic Financial Situation Consumer credit.

Personal bankruptcy filings increased sharply

during the second quarter, continuing the first quarter's ruptcies filed were 14.4 percent higher than in according to the U.S.

Courts,

upturn.

Bank-

last year's second quarter,

and preliminary July figures indicate a

22 percent advance over July last year. An index of non-rate terms on new car loans at finance companies continued to decline during the second quarter indicating more restrictive lending terms.

In recent months the index has fallen because declining loan-

value-to-dealer-cost

ratios have outweighed the effect of the emerging move-

ment towards over-36 month

maturities.

PERSONAL BANKRUPTCIES Number cases filed 172,643 159,144 157,672

1971 1972 1973

Percent change year-over-year - 8.3 - 7.8 .9

37,918

- 8.5

QII

39,394

+

QIII QIV

41,521 38,884

+ 4.4 + .7

1973 - QI

1974 - QI QII Source: Administrative Office, Board of Governors.

U.S.

43,051 45,074 Courts.

.4

+13.5 +14.4 Seasonally adjusted at the

-4NON-RATE NEW-CAR LOAN TERMS LOAN TERMS INDEX, S.A. (FINANCE COMPANIES)

1971 1972

93.8 100.1

1973

104.6

1973 -

QI QII QIII QIV

1974 - QI - QII

NOTE:

104.7 105.4 103.6 104.8 103.2 101.6

This index is a weighted average of the proportion of all new car contracts at finance companies having maturities of 31-36 months, and over 36 months, and of the proportion included in three categories of loan-value-to-dealer-cost ratio: 101-105 percent, 106-110 percent, and over 110 percent. The index is constructed so that higher index values represent more liberal terms. 1965QI = 100.0.

Mortgage market.

According to the HUD (FHA) opinion survey,

average interest rates on new commitments for conventional new- and existinghome loans in the primary market rose 15 basis points further during July to new highs of 9.40 percent--45 basis points above the peak last September. Private secondary market yields on 9 percent FHA-insured new-home mortgages rose 39 basis points to a new high of 9.85 percent.

With such mortgages

selling at discounts of more than 6 points, the maximum contract interest rate on Government-underwritten mortgages was raised one-half percentage point to a record level of 9-1/2 percent, effective August 14.

- 5 AVERAGE RATES AND YIELDS ON NEW-HOME MORTGAGES (HUD-FHA Field Office Opinion Survey)

End of month

1973 - Low

High

Primary market Conventional loans Spread 4/ Level 2/ points) (basis (percent)

Secondary market FHA-insured loans Spread / Discounts Level 3/ (points) (percent) (basis points,)

7.70 (Jan.) 30 (Jan.) 8.95 (Sept.) 114 (Sept.)

7.55 (Jan.) 9.18 (Sept.)

2.2(Dec.) 15 (Jan.) 137 (Sept.) 9.4(July)

--40 8.65 1974 - Jan. 2.3 8.54 44 Feb. 8.55 45 3.2 2 8.66 - 4 Mar. 8.60 5.1 9.17 19 Apr. 8.90 - 8 37 5.3 6 9.46 May 9.15 5.3 9.46 - 4 June 9.25 -25 6.3 n.a. 9.85 n.a. 9.40 July 1/ Any gaps in data are due to periods of adjustment to changes in maximum permissible contract rates on FHA-insured loans. 2/ Average contract rate (excluding fees or points) on commitments for conventional first mortgage loans, rounded to the nearest 5 basis points. 3/ Average gross yield (before deducting servicing costs) to investors on 30-year minimum-downpayment FHA-insured first mortgages for immediate delivery in the private secondary market (excluding FNMA), assuming prepayment in 15 years. 4/ Average gross mortgage rate or yield minus average yield on new issues of Aaa utility bonds in the last week of the month.

Deposit flows.

Based on sample data, the FHLB staff estimate

that S&Ls had a net outflow of about $200 million during the first 10 days of August.

The table below shows the pattern of estimated intra-monthly

flows in early August and in other previous periods.

ESTIMATED DEPOSIT FLOWS AT INSURED SAVINGS AND LOAN ASSOCIATIONS (Millions of dollars) 1st 10 days

2nd 10 days

last 11 days

Month

1973 - August

-300

-500

-700

-1,500

1972 - August

800

400

400

1,600

1974 - July August

0 -200

-100 --

-400 --

-

500 --

-6INTEREST RATES

1974 Highs

Lows

July 15

Aug.

15

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

13.55(7/3)

8.81(2/27)

13.34(7/10)

12.02(8/14)

9.02(8/8) 12.25(7/17) 12.75(8/15) 14.38(7/16)

6.93( 2/6) 7.75(2/22) 8.13(2/25) 8.25(2/18)

7.62 12.25 12.75 14.38

8.76 11.75 12.75 13.63

12.00(7/17)

7.88(2/20)

12.00(7/10) 11.88(8/14)

3-month Treasury bills (bid) Comm. paper (90-119 day)

Bankers acceptances Euro-dollars CD's (NYC) 90-119 day

Most often quoted new 6-month Treasury bills (bid) Comm. paper (4-6 mo.) Federal agencies CD's (NYC) 180-269 day Most often quoted new

9.01( 8/8) 6.80(2/19) 12.13(7/10) 7.50(2/22) 9.98(8/15) 7.16(2/19)

7.64 12.00 9.79

8.76 11.63 9.98

10.75(7/17) 7.50(2/27)

10.75(7/10)

10.50(8/14)

1-year

8.65( 5/3) 6.37(2/15) 9.59(7/10) 7.01(2/19)

7.87 9.40

8.49 9.59

9.75(7/17) 7.00(2/27) 6.50(7/12) 3.70(2/15)

9.75(7/10) 6.50(7/12)

9.25(8/14) 6.00(8/16)

Treasury coupon issues 5-years 20-years

8.68( 8/2) 6.72(2/14) 8.63(8/13) 7.40( 1/4)

8.42 8.31

8.57 8.58

Corporate Seasoned Aaa Baa

8.99(8/15) 7.73( 1/2) 9.76(8/16) 8.54( 1/2)

8.69 9.52

8.99 9.76

Treasury bills (bid) Federal agencies CD's (NYC) Most often quoted new Prime municipals Intermediate and Long-Term

New Issue Aaa Utility Municipal Bond Buyer Index Mortgage--average yield in FNMA auction

10.30(7/31) 8.05(2/13)

6.95(7/10) 5.16( 2/6) 10.12(8/12) 8.43(2/25)

10.25(7/10) 10.10p(8/14)

6.95(7/10)

9.90

6.61(6/14) 10.12(8/12)

-

7--

CORRECTIONS Part II, Section III page 4.

Table - Commercial Bank Credit.

In July, business loans at banks grew at a 19.7 percent annual rate, not the -19.7 percent rate shown in the table.

Part II, Section IV page 7.

In the table on "U.S. Balance of Payments".

The line on "Bank-reported claims" includes some liquid claims reported by nonbanking concerns.

SUPPLEMENTAL APPENDIX A* MONTHLY SURVEY OF BANK LOAN COMMITMENTS June 30, 1974

Unused commitments for business loans, loans to nonbank financial institutions, and real estate mortgages all declined during June at the 134 banks reporting in the Monthly Survey of Bank Loan Commitments. During the second quarter as a whole, unused commitments in most categories of loans reported on the survey grew more slowly than in the first quarter or declined and, hence, total unused commitments fell. An important exception to the general trend has been the relatively rapid growth of unused commitments for term loans to business. While this may be an unrecognized seasonal development--the survey began only late last year--nonfinancial corporations appear to be building up large commitments for financing through at least late 1975. The decline in volume of unused commitments in the second quarter appears to be attributable to both the sharp expansion of outstanding loans in some categories and to the declining rate of extensions of new commitments. The large rise in loans made under commitments to nonbank financial institutions during the quarter undoubtedly contributed to the decline in unused commitments to those institutions. On the other hand, while business loans at the survey banks grew only slightly less rapidly than during the first quarter, unused commitments for these loans grew at half the pace of the first quarter. Further, unused commitments for real estate loans declined at the same time that outstanding real estate loans made under commitment remained about unchanged. The decline in new commitment activity presumably reflects more restrictive bank lending policies. Substantial tightening in terms of lending was reported by banks in the May lending practices survey and has been confirmed more recently in staff conversations with bank lending officers. The easing in unused commitments caused most utilization ratios to rise appreciably in June. Except for business term loans, the utilization ratios have been gradually rising since the survey began late last year.

*Prepared by Paul W. Boltz, and Statistics.

Economist,

Banking Section, Division of Research

MONTHLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS 1/ (AS OF JUN. 30, 1974)

NOT FOR QUOTATION OR PUBLICATION

TABLE 1 - UNUSED COMMITMENTS (DOLLAR AMOUNTS IN BILLIONS)

I I I

(1) C I FIRMS TOTAL AMT

19

I NOVEMBER 30 DECEMBER

31

rutI

I

AUT

I

83.31 0.01 I I 82.71 -0.71

I

I

JANUARY 31

84.71

2.41

I

I

FEBRUARY 28

85.41 0.91 I I 84.81 -0.71

MARCH 31

I

APRIL 30

84.91 I

MAY 31 JUNE 30

NOV 73 - JUN 74 AVERAGE

I

0.19

It

rutI

(3) C I REVOLVING CREDITS

I (4) 1 I C CI I ITERM LOANS Ct IREV. CREDITS

It ruel

AMT

AMT

I 5.31 0.01 1 1.51 I 3.81

18.61 -2.11

5.21 -4.81

18.31

1

5.51

4.71

I

4.61

5.71

I 6.31 10.8

I

19.01

I 0.01!

0.51

6.21 -2.41 9.81

5.81 I

24.21

rult

AMT

I

0.01

74.01 -0.81 I

I

t

I 54.61

rucl

0.01I

25.01

18.61

I

18.81 19.1

1.11 1.71

18.71

1 0.21

25.01 25.91

I1

ruti

AMT

I

4.41

0.01

I

I

4.11

56.71

0.31

4.71

I1 I

55.91 -1.61I I

3.41 55.21 I1 0.21 56.61 I1 1 3.71 55.71 1.01

I

56.61

55.7 55.71

1.71 1 4.81 4.81 2.51

I 4.81 -0.31 I

2.61

I 1 24.51

AMT

4.31 -1.81 I 4.61 7.11

54.31 -0.51 I

I

18.411

1.1 3.81

5.81

1

23.51 -2.31 -1.61 I1 1 18.51 1.31 24.01 I -0.51 24.11 0.71I

I

6.81

I

(7) 1 (6) 1 (5) I I NON-BANK I C r I C FINANCIAL I I OTHER CONFIRMED I LINER ICOMMITMENTS IINSTITUTIONSI

1

I

86.21 1.51 1 I 85.91 -0.31 I I I I

84.71

I I I

(2) C I TERM LOANS

0.31

4.61 -4.31 1 1 4.31 -6.81

I4.61 I 4.69 -0.3l

I9

I 27.61

rUFI

(8) REAL ESTATE MORTGAGES AMT

I 0.01

I 26.91 -2.41

I "27.91 3.61 I I 28.21 1.11 27.81 -1.41 1 26.71 -3.91 I1 I1 0.21 26.81

IT

IT

rwC_

I I 0.01 119.51 0.0 1 I I 0.31 118.31 -1.0 18. I 2.3 -2.6 121.01 I 8.41 -1.21 122.01 0.7 I1 I I 8.11 -3.41 120.71 -1.0 I 8.11 0.21 119.71 -0.8 I1

1

8.01 -1.31 120.91

1.0

I -1.11

I 267.311

27.31 -0.61

7.81

I

MINOR INCONSISTENCIES MAY OCCUR DUE TO ROUNDING. **

120.21 -0.5 1

18. 8.31 -1.41

1/ BANKS PARTICIPATING IN THE MONTHLY LOAN COMMITMENT SURVEY ARE SELECTED WEEKLY REPORTING BANKS WITH TOTAL DEPOSITS OF $100 MILLION OR MORE. NOTE:

AMT

rU~I

NUMBER OF BANKS

**

(9) I TOTAL t I COMMITMENTS I

120.3 120.31 0.1

NOT FOR QUOTATION OR PUBLICATION

MONTHLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS 1/ (AS OF JUN. 30, 1974) TABLE 2 - LOANS UNDER COMMITMENTS 2/ (DOLLAR AMOUNTS IN BILLIONS)

(1)

I

C I FIRMS TOTAL

I I

AMT

NOVEMBER 30 DECEMBER 31

19

r-l|

I I 70.31 0.01 I I 71.81 2.11 I

I

JANUARY 31

70.Q9

FEBRUARY 28

I 72.31

-1.31 I 2.01

I

I

APRIL 30

77.01 6.51 I I 79.21 2.81

MAY 31

1 79.81

I 0.81

I

I

MARCH 31

JUNE 30

NOV 73 - JUN 74 AVERAGE

82.01

2.71

(2)

TERM LOANS AUT

IV

I 18.61

I 19.01

(4) C E

I

I

euclS

&MT

If

rurl

0.01

I 2.71

5.51

AMT

I

I

I

19.01 -0.41 I I1 1.21 19.21 I I 19.41 1.31

19.71 0.01 1 I 19.61 -0.31 I1 I 19.71 0.71 20.21 I 21.21 21.41

I 2.51

I 4.71

I 1.01

20.81

76.2I I2.21 76.21 2.21 19.81

1.01 0.51 1.7 1.71

21.81 I 22.21

1.81

2 20.91

0.01

I

1

38.61

1.21 I I1 38.61 -0.11 I f 39.41 2.11

19

40.61

3.01

25.71

'2.51 43.11

0.01

3.11 1.41 1.41 1.4(

26.61

3.41

1.71

IT

6.41 6.61

I 25.51 -4.01

6.71

I 26.41

12.4 3.61

29.71 12.41

30.81 30.31 -1.51

6.51

31.91

5.41 3.31

ruIl

AMT

IT

(8) REAL ESTATE MORTGAGES AMT

rucI

IT

I 0.01 3.01

1 -2.91

(9) TOTAL COMMITMENTS

I

rclI AMT

12 CHC

I 0.01 106.21

IP.11

I

I

18.41 -7.01 1

18.11 I 18.11

0.01 107.31 -2.1 108.81

1.3

19.81

18,31 -0.41

I

1.41 109.71

0.21

3.2

I

6.71 3.61 I I 6.51 -3.21 I I 7.01 7.91

19.31

5.61

I

18.21 1

0.7 0.21 114.61

5.3

I 20.61

6.41

18.21

117.91

2.9

0.1? 118.41 -0.71 0.21 122.81 0.11 18.11 -0.71

0.4

0.21 114.21

2.1

20.41 -0.71

I

6.91 -1.21

6.71

1

I I1 1.21

I

1

22.81

3.6

I

19.91

19.91

I 3.61

18.11

NUMBER OF BANKS

1/ BANKS PARTICIPATING IN THE MONTHLY LOAN COMMITMENT SURVEY ARE SELECTED WEEKLY REPORTING BANKS WITH TOTAL DEPOSITS OF $100 MILLION OR MORE. 2/ LOANS UNDER COMMITMENTS ARE DEFINED AS ALL LOANS UNDER COMMITMENTS CURRENTLY OR PREVIOUSLY IN FORCE, LESS PEPAYMENTS OF THE PRINCIPAL. THE REPORTED DATA ARE DISTORTED BY TAKEDOWNS OF LOAN COMMITMENTS BY OVERSEAS BRANCHES OF US BANKS AND LOAN SALES. ** NOTE:

0.0

0.011 9.61

I 1.31

17.81

18.01I

I

I

I

I S 28.71

I (7) I I I NON-BANK I FINANCIAL ( IINSTITUTIONSI

I

I

1

1 40.71

AMT

I

I

I 41.91

ruMI

I

I

1. 1.8

AMT

38.21

I 2.21

ruPrI

(5) I (6) I C I C EI CONFIRMED I OTHER ICOMMITMENTS LINES

I

I

20.71

I

REVOLVING ITERM LOANS El CREDITS IREV. CREDITS1

I

20.51

1

(3) c

I

MINOR INCONSISTENCIES MAY OCCUR DUE TO ROUNDING. **

MONTHLY SURVEY OF BANK LOAN COMMITMENTS AT SELECTED LARGE U.S. BANKS 1/ (AS OF JUN. 30, 1974)

NOT FOR QUOTATION OR PUBLICATION

TABLE 3 -

UTILIZATION RATIO 2/

(PERCENTAGES)

NOVEMBER 30 DECEMBER 31

(1) C I FIRMS TOTAL

(2) C c TERM LOANS

45.8

77.8

46.5

I

(7) I (6) 18) I (4) T (5I f (31 NON-BANK REAL I I C I CI I C I I CE OTHER FINANCIAL I ESTATE REEVOLVING ITERM + REV .1 CONFIRMED I IRTGAGES SLINES ICOMMITMENTSI INSTS. I MO I C:REDITS I I I I I 50.9 51.4

77.6

I

I

61.2 61.6

1

I

32.0

32.8

I I

59.4

1

60.5

45.6

78.4

51.9

62.1

FEBRUARY 28

45.9

77.8

52.2

62.2

MARCH 31

47.6

77.3

53.5

62.7

APRIL 30

48.3

76.4

53.5

62.7

MAY 31

48.1

77.0

53.6

JUNE 30

48.8

75.4

53.7

NOV 73 - JUN 74 AVERAGE

47.1

77.2

52.6

1

I

I

31.8

I

58.1

I 34.9

62.4

I

36.4

62.2

1

33.7

58.3 I

I I

7.6

39.8

67.

48.1

41.1

39.7

68.1

47.0

39.6

39.4

6P.4

47.1

39.8

41.0

69.3

48.7

41.8

43.5

69.2

49.6

42.9

43.3

69.5

49.5

42.7

46.2

69.8

50.5

44.3

68.7

48.4

41.5

42.3

I

I 60.5 S 61.9

I 1

47.0

1

I

35.8

62.9

I

59.2

I 34.7

67.3

39.5

I

S31.1 I

(10) SHORT -TFRM TOTAL 3/

I

I JANUARY 31

(9) TOTAL

59.4 59.4

I I

41.

I

NUMBEP OF BANKS

1/ BANKS PARTICIPATING IN THE MONTHLY LOAN COMMITMENT SURVEY ARE SELECTED WEEKLY REPORTING BANKS WITH TOTAL DEPOSITS OF $100 MILLION OR MORE. 2/ THE UTILIZATION RATIO IS THE RATIO, EXPRESSED AS A PERCENTAGE, OF LOANS UNDER COMMITMENTS TO THE SUM OF UNUSED COMMITMENTS AND LOANS UNDER COMMITMENTS 3/ EXCLUDES REAL ESTATE LOANS AND TERM LOANS. **

NOTE:

MINOR INCONSISTENCIES MAY OCCUR DUE TO ROUNDING. **

MONTHLY SURVEY OF BANK LOAN COMMITMFNTS AT SELECTED LARGE U.S. BANKS 1/ (AS OF JUN. 30, 1974)

NOT FOR QUOTATION OR PUBLICATION

TABLE 4 - NEW COMMITMENTS (DOLLAR AMOUNTS IN BILLIONS)

1

i

(9) (8) I (7) I TOTAL NON-BANK I REAL I ESTATE COMMITMENTS TERM CONFIRMED I OTHER I FINANCIAL I FIRMS I I REVOLVING ITERM LOANS El MORTGAGES I ICOMMITMENTS I INSTITUTIONSI TOTAL LINES I LOANS I CREDITS )REV. CREDTTSI It CHG It CHG 1- CHGI AMT AMT It CHGI AMT IX CHGI AMT It CHGI AMT It CHGI AMT It CHGI AMT AMT Ix CHGI AMT (1)

C

I NOVEMBER 30

4.91

1 DECEMBER 31 JANUARY 31

5.01 1

APRIL 30 MAY 31

I I 38.61

I

I

6.91

11.01

I

I

6.61

-4.71

I

6.21 -6.21

1

I NOV 73 - JUN 74 AVERAGE

I 1.41 I

6.21

I JUNE 30

I 0.01

4.51 -6.61

I MARCH 31

I

4.81 -2.81

I FEBRUARY 28

I

I

5.61

1

C

(2) I

I

I I 1.1? 0.0l 1.31

22.61

1

(31

C

C

I 1.21

I

I 0.81

I

1.31 60.71

I 1.21

I -8.71

I

I

I

1.11

-5.41

2.41

8.21

I

0.91-22.4|

6.71

I

I

0.91

5.81

I

I

I

I

28.li

4.41

1.11

5.21

I

-6.01

2.81

4.81 I

I 1.31

1 2.81

I I

1.61 I

I

I

I

I I

I

0.01

I

1.71 -1.31

I

I

2.21 23.31

I

0.0o1

0.P

9.61

I -0.61

I

5.61

I 0.01

I

0.71-11.31

I

I 0.81

21.41

I

I

2.11 -3.61

0.61-29.71

2.71

0.61

31.51

0.91

(

I

11.71

I

5.61 2.41

(6)

C

I

2.81 -0.61 1 I

I 6.71

3.61

2.61 50.81

I

I

1.21 -7.11

1.71

I

I

I 1.81

I

1.71-31.71

1.31 41.81

1.51

I

I

I 1.61

(5)

C

I 0.01

I

I 1.31

I

I 1.1?

I

1 I

2.21

0.01

I 0.81-39.21

(4)

I

0.91-12.51

I

0.71-22.31 I I 0.91 22.81

I 3.01 8.11 I I 2.81 -6.01

0.61

I 2.61 -5.81

I I 0.61 -8.41

-1.01 I 0.71 9.81

I

2.4

6.61I

0.71I -1.11I

2.41

6.61

0.71 -1.11

I

I

1.11 23.21

1

I

1.4! 26.01

I

I

1.21-13.91

I

I

0.81

0.01

6.51

0.0

I I 1.01 36.71

7.01

8.1

I I 0.91-16.11

6.61 -6.1

I

I

0.81-10.21 I I 0.91 12.71 I

** NOTE:

SURVEY ARE SELECTED WEEKLY REPORTING

0.91 3.21 I I 0.91 -0.51 I I 0.91 -5.61

1

I

I

I

I 1.01

I 6.41

I 0.91

I 2.91

BANKS WITH TOTAL DEPOSITS

MINOR INCONSISTENCIES MAY OCCUR DUE TO ROUNDING. **

8.01 33.3

I

NUMBER OF BANKS

1/ BANKS PARTICIPATING IN THE MONTHLY LOAN COMMITMENT OF $100 MILLION OR MORE.

6.01 -9.2

8.91 11.4 8.91 -0.5 8.21 -7.3 7.51

4.2

SUPPLEMENTAL APPENDIX B DEMAND DEPOSIT OWNERSHIP SURVEY SECOND QUARTER, 1974

Demand Deposit Ownership Survey data for all commercial banks indicate a smaller increase in total gross IPC demand deposits (not seasonally adjusted) in the second quarter of 1974 than in comparable quarters of the three preceding years for which data are available. (Table 1.) This weakness followed a much larger than usual decline in such balances in the first quarter, so that on balance for the first six months, gross deposits have declined relatively more than in previous years. While the first quarter decline in IPC deposits reflected reduction in nonfinancial business deposits, most of a sharp mainly quarter weakness was concentrated in demand balances of the second households. Financial business deposits also declined somewhat more than usual. Nonfinancial business deposits, on the other hand, expanded at a close-to-seasonal pace in the second quarter. The reduced growth in consumer balances occurred primarily at regional banks outside the major money market centers (Table 2). Part of this weakness may have reflected a drawing down of excess balances built up in the first quarter when the energy crisis created considerable uncertainty in financial markets. In addition, the availability to consumers of market instruments at increasingly attractive yields may have led to additional economizing in cash balances.

*

Prepared by Martha S. Scanlon, Economist, Banking Section, Division of Research and Statistics.

Table 1 CHANGE IN LEVEL OF GROSS IPC DEPOSITS BY OWNERSHIP CATEGORY, ALL COMERCIAL BANKS 1/ (Billions of dollars, not seasonally adjusted) Financial business QII QIII

QI

.3 .6 .9 .3

n.a. -6.4 -5.8 -7.1

n.a. 3.3 5.0 3.8

-7.7

4.0

QI

1970 1971 1972 1973

n.a. 1.0 1.7 -.2

n.a. -.2 -2.3 -. 1

1974

-. 2

-. 6

Year

0QI

OII

III

QIV

1970 1971 1972 1973 1974

n.a. .1 0 .2 -.2

n.a. -.1 0 .3 -. 1

-.2 -.1 0 .1

-.1 .1 .1 .3

-. 1 -.2 0 .2

Nonfinancial business QII QIII QIV

QIV

Year

2.7 1.9 4.0 1.7

4.6 6.9 8.4 7.9

oI n.a. .3 1.6 -. 5 -1.4

QII n.a. 0 -1.3 0 .1

QII

n.a. .8 -3.9 -.3

n.a. 1.8 5.7 2.2

.6

All other

Foreign

___

OIII .4 -.8 .4 .2

QIV .3 1.0 .9 .4

Households QIII

QI

QI n.a. -4,2 -6.3 -8.0 -8.9

2.4 1.2 2.6 1.8

2.2 1.2 2.4 1.0

.9

.

Total

QII

QIII

QIV

n.a. 4.9 7.1 6.3 4.3

5.3 2,1 7.0 4.0

7.3 9.7 12.6 9.8

1/ Changes are based on daily averages of last-month-quarter to last-month-in-quarter, not annualized. Data are before deduction for cash items in process of collection. Figures may not add to totals due to rounding.

QIV

Table 2 SECOND QUARTER CHANGE IN LEVEL OF GROSS IPC DEMAND DEPOSITS BY OWNERSHIP CATEGORY, AT WEEKLY REPORTING BANKS VS NON-WEEKLY REPORTING BANKS (Billions of dollars, not seasonally adjusted)

Financial

Nonfinancial

Households

business

business Year

WRB

NON-WRB

TOTAL

WRB

NON-WRB

TOTAL

WRB

NON-WRB

TOTAL

1971 1972

-. 1 .1

-. 1 -2.2

-. 2 -2.3

1.7 1.3

1.6 3.7

3.3 5.0

.5 .7

1.3 5.0

1.8 5.7

1973

-. 2

.1

-. 1

1.7

2.1

3.8

.6

1.6

2.2

1974

-. 5

-. 1

-. 6

1.9

2.1

4.0

.5

.4

.9

Year

WRB

NON-WRB

TOTAL

WRB

Foreign

1/

1/

All other

1971

-. 1

0

-. 1

.3

1972 1973

.1 .3

-. 1 0

0 .3

0 -. 1

1974

-. 1

0

-. 1

0

NON-WRB -. 3

Total

TOTAL 0

WRB

NON-WRB

TOTAL

2.4

2.5

4.9

-1.3 .1

-1.3 0

2.2 2.3

4.9 4.0

7.1 6.3

.1

.1

1.8

2.5

4.3

Changes are based on daily averages of last-month-in-quarter to last-month-in-quarter, not annualized. Data are before deduction for cash items in process of collection. Only data for total and weekly reporting banks are reported; figures for non-weekly reporting banks are residuals.

Figures may not add to totals due to rounding.

Cite this document
APA
Federal Reserve (1974, August 19). Greenbook/Tealbook. Greenbooks, Federal Reserve. https://whenthefedspeaks.com/doc/greenbook_19740820_part1
BibTeX
@misc{wtfs_greenbook_19740820_part1,
  author = {Federal Reserve},
  title = {Greenbook/Tealbook},
  year = {1974},
  month = {Aug},
  howpublished = {Greenbooks, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/greenbook_19740820_part1},
  note = {Retrieved via When the Fed Speaks corpus}
}