Full text of Federal Reserve Bulletin : December 1973
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FEDERAL RESERVE BULLETIN
CONTENTS
NUMBER 12 • VOLUME 59 • DECEMBER 1973
837
Recent Patterns of Corporate External Financing
847
Staff Economic Study: U.S. Energy Supplies and Uses
871
Treasury and Federal Reserve Foreign Exchange Operations:
Interim Report
874
Statements to Congress
884
Record of Policy Actions of the Federal Open Market Committee
892
Law Department
921
Announcements
924
Industrial Production
Financial and Business Statistics
A
1
Contents
A
3
Guide to Tabular Presentation
A
3
Statistical Releases: Reference
A
4
U.S. Statistics
A
72
International Statistics
A
98
Board of Governors and Staff
A 100
Open Market Committee and Staff; Federal Advisory Council
A 101 Federal Reserve Banks and Branches
A 102
Federal Reserve Board Publications
A 107
Index to Statistical Tables
A 109
Index to Volume 59
Map of Federal Reserve System on Inside Back Cover
EDITORIAL COMMITTEE
J. Charles Partee
Ralph C. Bryant
Lyle E. Gramley
Joseph R. Coyne
Robert Solomon
Kenneth B. Williams
Elizabeth B. Sette
The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial
committee. This committee is responsible for opinions expressed except in official
statements and signed articles, Direction for the art work is provided by Mack Rowe.
Recent Patterns of
Corporate
External Financing
In the period of expansion since 1970, nonfinancial corporations
have engaged in external financing at a rate that, by historical
standards, is large both in dollar volume and relative to corporate
product. Until the final quarter of 1972, the mix of financial
instruments used to raise these funds had been somewhat different
from the financing practices of earlier years, because it involved
much heavier reliance on long-term debt and equity markets than
had been common over the 1960's as a whole.
Since the final quarter of 1972, the dollar volume of corporate
external financing has continued to be exceptionally large in relation to the level of economic activity. However, the pattern of external financing now has returned to one more like that before 1971.
The portion raised in long-term debt and equity markets has fallen
to about the 1969 level—or somewhat below the average of the
1960's. This shift of emphasis back to short-term markets has
reflected mainly the general rise in interest rates since late 1972.
Despite this change, the severe stringencies in the 1969 financial
environment have not been present recently—or at least not to the
same degree. The relatively more relaxed conditions in 1973 are
attributable mainly to changes in financial regulations and to the
financing patterns that emerged during the intervening years. The
suspension of Regulation Q ceilings on large certificates of deposit
(CD's) in mid-May 1973 has permitted banks to bid for funds more
competitively than in past periods of monetary restraint. Therefore,
bank credit in general has continued to be available in 1973,
although at increasingly high interest and other costs. In addition,
FEDERAL RESERVE BULLETIN • DECEMBER 1973
838
it appears that corporate holdings of liquid assets are much more
consistent with the volume of internal funds being generated than
they were in 1969. Finally, the balance sheet restructuring that
occurred in 1971 and 1972 has provided corporations with somewhat greater financial flexibility than before.
THE COMPOSITION OF
EXTERNAL FINANCING
Changes in the volume and composition of corporate external
financing for the period since 1968 are documented in Table 1.
As was the case in 1969, many recent financing decisions seem
to have been explained by interest rate expectations and the yield
spreads between highly substitutable instruments. Over the period
as a whole, however, two more persistent factors appear to have
exerted major influences on the structure of financing undertaken.
First, corporations entered the present expansionary period with
liquidity positions considerably eroded, following the substantial
volume of short-term financing in 1969 and early 1970. The desire
to restore these positions meant that a larger-than-normal share of
total funds raised in 1971 was used to fund short-term debt and
to build liquid asset balances. In fact, even in the recent period
of rising interest rates, these asset balances have been augmented
further. Second, internal funds generally have grown less rapidly
of late in relation both to gross product and to capital outlays.
TABLE 1
NONFINANCIAL CORPORATIONS: STRUCTURE OF DEBT AND EXTERNAL FINANCING
Amounts shown in billions of dollars
Total
Bonds
Equity
Mortgages
Bank loans
Other credit
market instruments
Other
liabilities
Period
Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent Amount Per cent
Outstanding, end of period
1969..
1970..
1971..
1972..
518.6
555.5
596.4
655.2
100.0
100.0
100.0
100.0
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
147.6
167.3
186.1
198.3
28.4
30.1
31.2
30.3
71.8
77.0
88.5
104.1
13.9
13.9
14.8
15.9
97.0
102.6
107.4
120.9
18.7
18.5
18.0
18.5
23.1
26.3
26.3
28.8
4.4
4.7
4.4
4.4
179.2
182.2
188.1
203.0
34.6
32.8
31.5
31.0
Funds raised during period
1969..
1970..
1971..
1972..
54.8
41.3
52.8
68.9
100.0
100.0
100.0
100.0
2.9
4.8
11.7
10.4
5.3
11.6
22.5
15.1
12.0
19.8
18.8
12.2
21.9
47.9
35.6
17.7
4.6
5.2
11.4
15.6
8.4
12.6
21.6
22.6
11.6
5.7
4.8
13.9
21.2
13.8
9.1
20.2
7.1
3.3
0.6
2.5
13.0
8.0
1.1
3.6
16.5
2.5
5.5
14.4
30.1
6.1
10.4
20.9
1972—
Ql..
2..
3..
4..
56.6
59.0
66.7
93.3
100.0
100.0
100.0
100.0
8.5
12.8
10.2
10.0
15.0
21.7
15.3
10.7
12.4
12.9
12.4
11.1
21.9
21.9
18.6
11.9
13.0
15.0
16.8
17.7
23.0
25.4
25.2
19.0
7.6
7.2
11.8
28.7
13.3
12.2
17.8
30.8
1.3
4.6
1.6
2.4
2.3
7.8
2.4
2.6
13.8
6.4
13.9
23.4
24.4
10.9
20.8
25.1
92.3
103.6
105.7
100.0
100.0
100.0
9.6
8.8
3.1
10.4
8.5
2.9
7.8
11.0
7.9
8.5
10.6
7.5
15.0
19.5
21.7
16.3
18.8
20.5
54.8
27.0
28.2
59.4
26.1
26.7
-10.1
2.3
3.2
—10.9
2.2
3.0
15.0
34.9
41.6
16.3
33.7
39.4
1973—
Q
J::
3..
n.a.—Not available.
NOTE.—Data from flow of funds accounts are quarterly at seasonally
adjusted annual rates; 1973 Q3 preliminary. Other credit market
borrowing consists of commercial paper and loans from finance companies and the U.S. Government. Other liabilities are trade credit,
profits tax liabilities, and miscellaneous.
CORPORATE EXTERNAL FINANCING
839
This more sluggish growth undoubtedly has reinforced the desire
of nonfinancial corporations to rebuild liquidity, in addition to
requiring more external financing for the investment that has occurred.
While the volume of external financing that took place between
1970 and the end of 1972 was dictated by the general shortage
of internal funds relative to investment and liquidity objectives,
its composition was influenced by two further considerations. One
was the desire to fund some short-term debt as a means of
improving debt capacity in both short- and long-term markets. The
other was the desire to accomplish this restructuring in a manner
that would slow the rate of increase in debt/equity ratios. To
implement these objectives—once interest rates had retreated from
their peaks in 1970 and the stock market had recovered from its
mid-1970 lows—nonfinancial corporations expanded their reliance
on long-term financing, particularly in market sectors where they
had previously been inactive.
The particular instruments involved in this expanded reliance
on long-term borrowing tended to change somewhat as the period
progressed. Net bond issues, at a record $19 billion in 1971,
dropped back in early 1972 to about a $12.5 billion annual rate—
about the same as in most other years since 1967, even though
the total amount of debt financing was far more modest in those
earlier years. Also, in 1971 an increasing amount of corporate
long-term debt funds began to be provided through mortgages, with
the growth concentrated more in mortgages secured by commercial
properties than in those secured by residential investment. Growth
in this area was encouraged by the greatly expanded flows of savings
into banks and thrift institutions at a time when some of the funds
previously available from the insurance sector for direct corporate
debt financing were being absorbed by other investments, particularly those in the equity market. Furthermore, the higher interest
cost of mortgage funds relative to privately placed debt was to some
extent offset by the ability of physical collateral to substitute for
debt covenants and other restrictions on financial policy that traditional lenders might have imposed on firms at that time.
Net new issues of equity had been small during the late 1950's
and 1960's; in fact, in 1968 at the peak of the conglomerate merger
movement, nearly $1.5 billion of equities in nonfinancial corporations had been retired, much of it through exchange into convertible
debt. During the early 1970's, on the other hand, the pattern of
stock financing changed rather dramatically. More stock was issued
(net) between 1969 and 1972 than had been issued cumulatively
in the public market during the preceding decade and a half—with
most of the expansion occurring after 1970. Much of the increase
840
FEDERAL RESERVE BULLETIN • DECEMBER 1973
was accounted for by the shares of utility companies, since many
such firms had exhausted their capacity to issue additional debt,
but issues of manufacturing companies also grew substantially.
The new financing patterns that began to emerge in 1971 persisted
to some extent throughout the first three quarters of 1972, but by
the fourth quarter a changed financial and economic environment
began to reverse the heavy reliance on capital markets for external
financing. With an accelerating pace of economic activity and
continued inflationary pressures, conditions in credit markets tightened appreciably; corporations more than doubled their borrowing
from banks, and also increased their other short-term borrowing.
The volume of new equity financing receded after the second
quarter, and public bond issues, particularly those of manufacturers,
dropped off considerably. An increase in mortgage financing was
the only departure from a general shift to short-term financing.
Through the first three quarters of 1973 businesses concentrated
their financing increasingly in short-term maturities. A first-quarter
surge in bank loans was partly at the expense of commercial paper
and other short-term credit market borrowing, and accounted for
60 per cent of total corporate external financing. The flow was
reduced later in the year as banks tightened nonprice terms of their
loans, while the institution of the two-tier prime rate in April
allowed the price of loans—especially to large corporations—to
rise. Nevertheless, more than 25 per cent of external corporate
financing was still being provided by banks in the third quarter,
a share that is large by historical standards. Rising interest rates
and inflation have also led to substantial increases in other shortterm business liabilities. In periods of rising prices and profits,
tax liabilities tend to accrue faster than payments are made, and
trade credit becomes an increasingly important source of funds in
periods of general credit stringency, especially for small business.
Despite the fact that utility firms continued to raise funds through
issues of preferred stock, the flow of business financing through
equity markets declined throughout most of the year to a level
that, in the third quarter, was only one-third as large as the year
before. The depressed level of stock prices throughout much of
the year has made equity financing more costly.
Business needs for long-term credit have continued to be covered
to an important extent in the mortgage market and, to a lesser
extent, in bond markets. Through the third quarter of 1973 the
volume of new bond offerings dropped off to a significant degree,
particularly in public markets; in fact, for the third quarter the
volume of gross new public offerings was the smallest since the
final quarter of 1966. During most of the year, market expectations
that interest rates were likely to fall once the business expansion
CORPORATE EXTERNAL FINANCING
841
j Borrowers substitute SHORT-TERM BANK
CREDIT for commercial paper in early 1973
FLOWS, BILLIONS OF DOLLARS
F l o w of funds accounts data, n . e . c . Not e l s e w h e r e classified.
slowed have limited borrower demands on the bond market. These
expectations have tended to restrain advances in bond yields relative
to those on short-term instruments.
The over-all volume of corporate financing has remained strikingly large this year despite the increased cost of borrowing and
the shift of emphasis back toward short-term debt. There has been
a growing deficiency of internal funds relative to capital outlays,
but in addition corporations in the past year have used the availability of short-term funds to add to their stock of liquid assets.
This situation is in marked contrast to previous periods of high
interest rates and monetary restraint when the drawing down of
liquid asset balances substituted for the funds that could no longer
be raised in credit markets.
LIQUIDITY
Before 1971, holdings of liquid assets had been declining relative
to current liabilities for many years, as rising interest rates and
better techniques of cash management encouraged corporations to
economize on liquid asset balances. The rate of decline had accelerated in the late 1960's, but in 1969 and early 1970 liquidity
842
FEDERAL RESERVE BULLETIN • DECEMBER 1973
2 | CORPORATE LIQUIDITY RATIO continued its long postwar decline until 1971
SEC end-of-quarter data, seasonally adjusted by F.R. Liquid assets are the sum of cash, U . S . Government securities, and "other"
current assets.
ratios dropped almost 20 per cent; firms both borrowed short-term
and ran down holdings of liquid assets when the availability of
credit from banks and other short-term sources decreased. As noted
earlier, the rebuilding of liquidity positions in late 1970 and 1971
occurred both through the actual accumulation of liquid balances
and through the restructuring of external financing toward longer
maturities.
Despite the large increases in short-term or current liabilities
that have occurred this year, the liquidity ratio has remained
remarkably stable, given its long history of decline. It is, therefore,
quite likely that firms have raised the target level of liquid asset
holdings that they desire to maintain. Reasons for this are not hard
to find. Corporations may simply wish to avoid a repetition of the
liquidity crisis of 1970. But several new uncertainties not present
in 1970 apparently have also been added.
Inasmuch as foreign currency balances are a necessity to firms
doing a substantial international business, the fact that many
TABLE 2
COMPOSITION OF LIQUID ASSETS OUTSTANDING
End of year, not seasonally adjusted
In per cent
In billions of dollars
Type of asset
Domestic liquid assets plus foreign currency....
Foreign currency
Liquid assets
Demand deposits and currency
Time deposits
U.S. Govt, securities
Other short-term assets
1969
1970
1971
1972
1969
1970
1971
1972
80.2
1.3
78.9
34.9
11.8
7.0
25.3
78.8
.9
77.8
35.2
13.5
7.3
21.8
90.7
2.3
88.4
35.9
17.1
9.4
26.0
97.6
4.1
93.5
36.0
20.2
7.0
30.3
100.0
1.6
98.4
43.4
14.7
8.7
31.5
100.0
1.2
98.8
44.8
17.1
9.3
27.6
100.0
2.6
97.4
39.6
18.8
10.3
28.7
100.0
4.2
95.8
36.9
20.7
7.1
31.1
SOURCE.—Board of Governors of the Federal Reserve System, Flow of Funds Accounts, 1945-1972.
10
CORPORATE EXTERNAL FINANCING
3 | LIQUID ASSETS flow primarily into interest-bearing instruments
BILLIONS OF DOLLARS
20
OTHER SHORT-TERM
SECURITIES
TIME DEPOSITS
K
/
/
W
\
/
V — V
v
Y
V
/
V
/
\
^
/
X
/ A /
J
N 4
/
\
1969
t K B I
1970
1971
•
1972
1973
/
\ S
DEMAND
DEPOSITS
1
I
^
H
1969
^
W
M
H
P
1970
^
^
W
W
»
U.S. GOVT.
SECURITIES
P B S
1971
1972
1973
F l o w of funds accounts data. 1973 Q 3 preliminary. Other short-term assets consist of commercial paper, security R P ' s , and
State and local securities.
exchange rates have been floating since the general currency realignments of late 1971 has undoubtedly created a liquidity demand
for such balances over and above the bookkeeping effects of the
dollar devaluation on dollar values of foreign-denominated balances.
Furthermore, the accelerating rate of inflation, especially in
prices of raw materials, uncertainties about the future course of
the wage-price stabilization program and its impact on profits; and
actual shortages and delivery delays in the case of many supplies
have also increased the difficulty of predicting cash flow with any
degree of accuracy. In addition, the level of profits and cash flow
has been smaller relative to corporate product than was true earlier
in the decade. For these reasons and apart from international
considerations firms may wish to have a larger liquidity cushion.
Since about 60 per cent of corporate holdings of domestic liquid
assets are accounted for by interest-bearing instruments—
principally time deposits and open market paper—some of this
accumulation of liquidity may represent a corporate response to
better investment opportunities than alternative uses of corporate
funds. Certainly the changes in the composition of these flows
indicate a great deal of rate sensitivity. The build-up of CD balances
in the past year is noteworthy, and many corporations apparently
borrowed from banks in order to acquire C D ' s early in 1973 when
the prime rate was well below other short-term rates. There is also
a high degree of substitutability between U.S. Government securities and other short-term market instruments. Whatever the causes of
this development, the volume of liquid assets that nonfinancial
corporations have acquired in the past year has been substantial—a
marked departure from the behavior typical of past periods of rising
interest rates and restrictive monetary policy.
844
CAPITAL OUTLAYS
AND INTERNAL FUNDS
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Besides being less predictable, corporate internal funds have not
grown so rapidly as corporate income since the 1969-70 recession.
During most of the period the stabilization program has exercised
some degree of restraint on price increases and thus on profits.
While opinions have varied as to the extent of the impact of Phase
II on corporate earnings, most observers feel that the present program
will keep profits at levels below those that would have been attained
in the absence of controls.
In addition to the stabilization program, retained income has been
negatively affected by most of the factors responsible for the
sluggish recovery of profits since 1970. These include substantial
increases in interest charges as well as in labor and materials costs
that firms could not completely pass on. Furthermore, an increasing
share of reported gains in book profits has reflected inventory profits
resulting from inflation rather than a sustainable level of operating
earnings. The inflation factor has been particularly troublesome in
1973 when the size and volatility of the adjustment for inventory
profits have made quarterly movements in earnings unusually difficult to interpret.
CAPITAL CONSUMPTION ALLOWANCES
continue to supply major part
of internal funds
BILLIONS OF DOLLARS
FOREIGN
BRANCH PROFITS
UNDISTRIBUTED
PROFITS PLUS IVA
CAPITAL
CONSUMPTION
ALLOWANCES
F l o w o f f u n d s a c c o u n t s data.
1973 Q 3 preliminary. I V A Inventory valuation adjustment.
Adding to internal funds, however, have been the depreciation
liberalization of the Asset Depreciation Range System and the
investment tax credit, both introduced in 1971, as well as the
substantial tax write-offs of 1970. The dividend restraint program
of the Committee on Interest and Dividends, especially before its
liberalization in June 1973, undoubtedly increased the rate of
CORPORATE EXTERNAL FINANCING
845
retention of after-tax profits. Earnings repatriated from foreign
branches have also augmented the funds available to U.S. corporations with international operations. Since such earnings have been
growing more rapidly than those from domestic operations, they
have become an increasingly important source of funds.
After rising in 1971 by only 3 per cent above their level in
1970, corporate capital outlays rose by 16 per cent in 1972;
increases in the first three quarters of 1973 averaged more than
12 per cent, annual rate, even with a zero rate of growth in the
first quarter. Although until recently residential construction has
been the fastest growing component of corporate capital spending,
plant and equipment expenditures have always accounted for the
bulk of these outlays.
Growth in business fixed investment was largely concentrated
in the communications and utility sectors until manufacturing
outlays also began to increase to a significant degree late in 1972.
Inventory accumulation has been relatively modest, and inventory/sales ratios have declined to unusually low levels. Firms have
reduced the number of product lines and attempted to turn stock
more often, and shortages and the underestimation of sales may
also have kept inventory levels low.
In short, for the period as a whole, internal funds have not been
so large, relative to capital outlays, as they were before the 1969-70
recession, and the gap has increased further in 1973. This development has added to corporate demands on credit markets for funds
both to finance capital outlays and to fund the higher levels of
liquidity that firms now feel it desirable to maintain.
CAPITAL OUTLAYS, after a slow recovery,
expand faster than INTERNAL FUNDS. . .
PLANT AND EQUIPMENT outlays are especially strong
BILLIONS OF DOLLARS
CAPITAL OUTLAYS /
EXTERNAL FINANCING
INTERNAL FUNDS
F l o w of funds accounts data. 1973 Q 3 preliminary.
846
FEDERAL RESERVE BULLETIN • DECEMBER 1973
*
•
*
*
*
Recently, rates of capacity utilization have been high in many basic
manufacturing industries, and the number of manufacturers who
believe that more capacity is needed has grown. According to recent
survey data, manufacturing outlays for plant and equipment in 1973
are expected to be almost 20 per cent above 1972, although the
outlook beyond 1973 has been clouded recently by the embargo
on Middle Eastern oil. While the rate of growth in business profits
has been decelerating, large increases in plant and equipment
outlays still seem to be indicated for precisely those industries
where shortages now exist.
In an effort to reduce inflationary pressures, monetary policy
moved toward restraint after the final quarter of 1972. In previous
periods of monetary restraint, as the spread between capital outlays
and internal funds widened, funds available to corporations became
increasingly tight, and holdings of liquid assets were reduced as
short-term credit became less available. That this same pattern did
not occur in the recent period is in large measure due to the
continuing availability of bank credit; banks have used their freedom from Regulation Q rate ceilings on large C D ' s to bid aggressively for funds in this market.
However, corporate debt/equity ratios, debt structure, and liquidity levels now imply greater financial flexibility and consistency
with the flows of internal funds likely to be realized. Hence, the
restructuring of corporate balance sheets after 1970 contributed to
an easier transition to the higher level of interest rates necessary
to finance real expansion of plant and equipment in an inflationary
environment.
•
Staff Economic Study
U.S. ENERGY SUPPLIES AND USES
Clayton Gehman—Staff, Board of Governors
From time to time the Federal Reserve BULLETIN publishes in full staff studies that are of
general interest to the economics profession and
others.
As in all staff economic studies, the author
is responsible for the analyses and conclusions
set forth, and the views expressed do not necessarily indicate concurrence by the Board of
Governors, the Federal Reserve Banks, or
members of their staffs.
Contents
Summary
Page
848
Energy Supplies:
Total energy production—annual and quarterly measures
Energy production by industrial stage
Btu output series
Foreign trade and new supplies of energy
Visible stocks of energy
Petroleum:
Oil and gas well-drilling and output
Refinery capacity and operations
Production and imports of petroleum products
Domestic demand for petroleum products
859
859
859
862
Energy Uses:
New supply of energy relative to total production
Energy end-products—output, new supply, and value
Industrial processing and energy uses
FRS electric power data
862
864
866
868
Over-all Conditions:
Total energy—new supply and uses
Seasonal and other considerations
870
870A
Notes to Charts
870A
849
850
853
855
857
847
848
FEDERAL RESERVE BULLETIN • DECEMBER 1973
This study is based on industrial production
measures and related data in real terms. The
original version was completed in July 1973
with data through midyear. In the version presented here some revisions have been made in
both text and charts, and data have been added
for the third and fourth quarters of 1973. Actual
and prospective curtailments in oil shipments
following the outbreak of the Middle East
conflict in October have had a major impact
on the outlook for U.S. and world supplies of
petroleum products for an indeterminate period
and are contributing to major changes in international policies affecting energy sources and
conservation measures.
SUMMARY
This study is designed to provide new and
current measures—in real terms and with historical perspective—of the sources and uses of
energy in the United States. From this and other
studies it is evident that for some period ahead
the development of major additional domestic
energy resources or a continuing marked expansion in imports of energy will be necessary
if continued growth in consumer activities and
industrial production is to be maintained.
This conclusion seems warranted although the
present study indicates that aggregate final U.S.
consumption of energy in real terms has
not shown an accelerated rate of growth in
recent years and that industrial processing per
unit of energy has been rising again since 1971.
The latter is now 140 per cent above the figure
for 1946, although there was a slowing down
in the late 1960's when use of primary energy
accelerated. The approach in 1973 to near-capacity output levels for major materials, which
consume the great bulk of energy used for
industrial purposes, has recently been a factor
in limiting the expansion in total energy use.
On the other hand, private and public efforts
to reduce air pollution might have been expected
to increase energy requirements, but there was
no clear evidence by mid-1973 of a major imNOTE.—The author, who is Chief of the Business
Conditions Section, Division of Research and Statistics,
wishes to acknowledge the assistance of Mary Hedda
Hillard and other members of the Section.
pact on either energy end-products or industrial
processing.
Comparisons made in this study indicate that
expansion in energy production has been more
stable cyclically than growth in total industrial
production (IP) but that the average growth rate
for each over the whole post-World-War-II
period has been 4.5 per cent.
During the second half of 1973 total industrial
production of energy—in both primary and secondary forms—has risen above a year earlier,
reflecting the pressures of accelerated demands
and the higher prices for those products. Upward trends in underlying data (preliminary)
indicate that over-all domestic supplies and uses
of energy reached new records in the third
quarter and changed little in the fourth quarter.
Nearly one-half of industrial energy production represents end-products, which have grown
steadily at a 7 per cent annual rate since
1953. The remaining portion of energy production is for materials that are used to produce
end-products and for industrial processing.
Data indicate a growing dependence on imports of refined petroleum products—largely residual oil—since 1969. The greater dependence
on crude oil has come more recently—since
1971—mainly as a result of the leveling off in
U.S. production of oil and gas and lack of more
intensive utilization of U.S. coal resources.
Natural gas accounts for an overwhelming
share of the energy used for industrial processing. Petroleum accounts directly for around
one-tenth of the total energy used for this purpose. Coal and electricity account for the remainder.
Utility use of petroleum in 1972 accounted
for about one-fifth of total electricity generation
needs. Recent data on such uses and on utility
stocks of oil are not yet available. Natural gas
accounts for the major part—about fourfifths—of the total energy used by both the
electric and gas utilities. Use of coal by the
electric utilities, however, has continued to expand in 1973.
In the final quarter of 1973 use of electricity
in industries producing consumer goods and
equipment was running about one-tenth above
a year earlier. The total amount of energy consumed in the capital goods industries is rela-
849A
U.S. ENERGY SUPPLIES AND USES
tively small, and the further expansion in those
industries has been a major factor in the rise
in total industrial production this year.
Considerable concern about gasoline shortages developed during the spring of 1973, but
by midyear, data suggested an improvement in
market supplies of these and other energy endproducts. This improvement reflected mainly a
continued expansion in imports of crude oil,
which in turn provided the basis for some further
rise in petroleum refining from earlier near-capacity operations.
By autumn some further improvement in the
underlying supply of energy relative to uses was
indicated. This was not reflected, however, in
an easier market situation for several reasons,
among others: increased energy holdings by
users, shifts in the usual supply channels in
anticipation of new shortages that might develop
later, and prospects of public controls over the
distribution of energy supplies and of much
higher prices. U.S. imports of petroleum products reached new peaks in October and early
November. The announcements in October,
however, of marked curtailments in shipments
of oil from the Middle East were followed by
projections of import curtailments that indicated
petroleum supplies would be reduced to around
1971 levels by early 1974.
Finally, the study notes that increases in demand for energy for the longer-run period ahead
may be less than the earlier projections had
indicated because of the possibility of important
economies in the use of energy and the likelihood that the use of energy implied by the
projected growth rates in GNP (fullemployment-potential) may have been too high.
ENERGY SUPPLIES
Total energy production—annual and
quarterly measures. Most earlier studies of
energy requirements have drawn on historical,
annual data for final and intermediate uses,
which have been combined and projected on the
basis of coal, oil, or thermal-unit equivalents
by several broad sectors of the economy. This
study focuses attention on current and historical
analysis in terms of both production data and
thermal units; it uses seasonally adjusted
monthly series that are grouped by industrial
stage and type of product and then averaged for
quarterly and annual intervals. The basic data
are mainly IP indexes, thermal units, and
foreign trade statistics. 1
For this study a new measure of total U.S.
energy production in all industrial sectors—
mining, manufacturing and utilities—has been
developed. This measure is based on a combination of selected IP series as listed with their
relative importance in 1967 in the accompanying Table l. 2 Movements in this measure are
compared annually with total IP in this section.
The pattern of relative changes in the two
measures is found to be broadly parallel, but
the growth in energy production has usually
been more stable than the growth in total IP.
As shown in Chart 1, energy production increased relative to IP during the intervals of
industrial curtailment or slowdown in 1970,
1967, 1960-61, 1957-58, and 1953-54, but not
in 1949 when the coal industry was of much
greater importance. 3 Factors limiting the recovery in IP in 1971 that contributed to the continuing gap are noted below and in 1971 Edition.
Over the whole period since the end of World
War II there has been a marked and almost
steady expansion in production of energy endproducts used for personal consumption and
commercial purposes; only during periods of
industrial readjustments affecting energy has
this expansion been interrupted.
1
These data are (1) the Federal Reserve industrial
production index using both value-added combinations
(IP) and individual production series—the latter are
represented monthly in all of the energy industries by
physical product data, which usually have been subject
to little revision (except for the gas utility series); (2)
aggregate physical energy data in British thermal units
(Btu's); and (3) U.S. foreign trade figures in physical
product
and Btu terms.
2
The IP series are combined with the regularly published value-added (unduplicated) weights used in calculating total IP with data compiled from official sources
and described in the Board's publication Industrial
Production—1971 Edition (referred to henceforth as
1971 Edition), p. 51. Two new features of the revised
IP index facilitate study of major trends in energy. One
provides for a more refined market grouping by separating all products from materials. A second is the compilation of gross-value-weighted energy production series
that permit more appropriate comparisons with foreign
trade and other expenditure data.
3
These data are plotted on uniformly proportioned
ratio scales for most of the charts in this paper, with
most figures for November 1973 preliminary and those
for December 1973 estimated.
850
FEDERAL RESERVE BULLETIN • DECEMBER 1973
For the postwar period as a whole the average
rate of increase per year for both energy production and total IP has been about 4.5 per cent.
Increases in both series were above average in
the early part of the period and again mainly
from 1964 to 1969, reflecting in part the effects
of war-related influences on demands for industrial goods. In those intervals energy production
TABLE 1
ENERGY PRODUCTION IN 1967
British thermal units
Line
No. Grouping and series
Total.
Value-added dollar
proportions ofTotal
IP
Total
energy
Trillions
Proportions of
total in
line 35
11.36
100.0
2
3
4
5
Energy end-products..
Consumer fuel
Automotive gasoline..
Distillate fuel
5.05
1.14
.85
.29
44.5
10.1
7.5
2.6
24,551
14,357
9,671
4,686
56.1
32.8
22.1
10.7
6
7
8
Consumer utilities. .
Residential electricity.
Residential gas
2.25
1.63
19.8
14.4
5.5
5,516
1,161
4,355
12.6
2.7
9.9
9
Other energy
ducts
Commercial and
electricity
Commercial and
gas
Aviation fuel
kerosene
1.66
14.6
4,678
10.7
1.28
11.3
930
2.1
1.8
2,078
4.7
1,670
3.8
10
11
12
.62
proother
other
and
.20
.18
13
14
15
16
17
18
Energy materials. . .
Mineral
fuels....
Coal
Crude oil
Natural gas
Natural gas liquids.
6.31
4.60
.70
2.95
.67
.29
55.5
40.5
6.1
53,124
14,174
5.9
2.5
18,753
2,097
19
Utility sales to
industry
Gas
Electricity
1.35
.35
11.8
3.1
8.7
8,880
7,221
1,659
.36
.05
.16
3.1
0.4
1.4
3,778
1,735
.15
1.3
351
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Other energy
materials
Residual oil
Coke and products.
Self-generated
electricity
Primary energy
Mineral fuels ( 1 4 ) . . . .
Hydro and nuclear
power
For use in industrial
processing
Coal excluding utility
use
Direct sales of natural
gas
Gas utility sales
Electricity(21 + 2 5 ) . .
Residual oil excluding
utility use
Total final uses (2 +
29)
1.00
26.0
18,100
1,692
55,551
53,124
2, All
19,245
43.9
7,085
16.2
2,208
7,221
2,010
5.0
16.5
4.6
721
1.6
43,796
100.0
NOTE.—Value-added proportions from Industrial Production, 1971
Edition, Table A - l . The IP series for anthracite and for AEC purchases
of electricity from utilities (each .03 per cent) are not shown separately
in this table, as noted on p. 854, which also describes the two additional series compiled for industrial self-generation (line 25) and direct
sales by natural gas producers (line 31). Btu calculations and estimates
for hydro and nuclear power are from U.S. Department of the
Interior and Federal Power Commission.
rose at rates somewhat less than the rates of
increase in IP.
Quarterly seasonally adjusted movements of
the annual data in Chart 1 are plotted in Chart
2 for the period back to 1954 to provide a clearer
picture of the cyclical and other short-run fluctuations in production. Energy production leveled off after the autumn of 1970 and then in
October and November 1971 was reduced by
a major strike in the coal industry. After recovery from the strike, energy production has increased more slowly, particularly since the
spring of 1972. Meanwhile, both total IP and
total uses of energy have shown a renewed
expansion since the end of 1971.
The slower rate of increase recently in energy
production has reflected an approach to near-capacity operations with existing domestic sources
and technology; on the other hand, the renewed
expansion in energy uses has reflected in part
the sharp rise in IP and a recovery in the use
of energy for industrial processing purposes.
Such a rate of rise in IP, however, could not
have been expected to continue much longer—
even without the development of energy limitations—because of both demand and short-run
industrial capacity considerations. The sharply
advanced rates of completion and occupancy of
residential, commercial, and public structures
since 1971 have also contributed to a further
rise in the use of energy end-products and these
advanced rates of increase no longer prevail.
Energy production by industrial stage.
Series on energy production—19 in all—account for 11.36 per cent of total IP in the
latest—1967—weight-base year. 4 Since these
and other component series of IP are combined
with value-added weights, they involve no double counting.
Value-added dollar proportions of the energy
series have been converted to proportions of
total energy production (second column of Table
1) for the present analysis. Close to one-half
(44.5 per cent) of this new total is for endproduct uses (line 2), including final personal
consumption (automotive gasoline, home heating and lighting, and use of electricity and gas
for appliances and TV sets); commercial uses
4
The series listed in Table 1 includes a component
for industrial self-generation (p. 854) of electricity,
which is only implicitly measured in total IP.
851A
U.S. ENERGY SUPPLIES AND USES
(offices, stores, farms, and for public transportation purposes including aviation and diesel
fuel); and 4 'other" electricity and gas uses
(public lighting, other public authorities, and
electrified rail transit). 5 These output and uses
•^The fact that portions of automotive gasoline and
distillate oil are used for commercial purposes rather
than final consumption does not impair these comparisons as both are classified as end-product uses. At best,
the various groupings in this analysis cannot yield exact
results, but do provide broad measures of change. For
example, distillate oil is classified as an end-product
in this study, but the 1967 Census of Manufactures
reported that 65 million barrels—about 8 per cent of
total supply—were purchased by manufacturers.
The classification of aviation fuel and electricity and
gas used for commercial purposes as end-products does
not conform with the conventional distinction between
intermediate and final output used to derive GNP data.
The production measures follow the revised IP market
structure, which is more appropriate for the particular
study of energy uses.
11 ANNUAL MEASURES of INDUSTRIAL PRODUCTION
RATIO SCALE, 1967=100
140
ENERGY
NOTE.—For notes to all charts, see p.
870A.
2 I QUARTERLY MEASURES of INDUSTRIAL PRODUCTION
RATIO SCALE, 1967=100
ENERGY
852
FEDERAL RESERVE BULLETIN • DECEMBER 1973
data for the year 1967 are presented in Btu terms
in the diagram for domestic energy flows shown
on page 853.
The remaining 55.5 per cent of total valueadded energy production is for the materials
(line 13) used to produce energy end-products
and for industrial processing. Crude oil (line
16), for example, is used to produce such endproducts as gasoline, distillate oil for home
heating, and aviation fuel (lines 4, 5, and 12)
and also residual oil (line 23), which in turn
is used in part to generate electricity for use
by industrial consumers (line 21), as well as
for electricity use by residential and commercial
customers (lines 7 and 10).
Chart 3 presents quarterly average, seasonally
adjusted IP measures of energy end-products
and of energy materials on a 1967 = 100 base.
The generally sustained upward trend in the
end-products measure over the past two decades
has been at an average annual rate of about 7
per cent—as compared with 4.5 per cent for
the total—and has been a dominant influence
on production of energy materials. Output of
materials, however, has been affected periodically by changes in the amount of energy used
for industrial processing, due to cyclical fluctuations in IP. These fluctuations are larger than
for the total economy, as measured by real
GNP, because production in the more volatile
sectors—business equipment, durable consumer
goods, industrial materials, and the balance of
foreign merchandise trade—accounts for a much
larger share of IP than of GNP (1971 Edition,
page 81).
Moreover, there have been intervals—especially for monthly or quarterly periods—when
stocks of coal and petroleum have fluctuated by
more than seasonal amounts. If reliable data on
the actual amounts of energy consumed were
available, they would probably show more stability than either the data for energy production
or the data for final uses. For these reasons,
and because coal production is more important
in the energy materials measure than in total
energy production, the strike in the coal industry
in late 1971 had a greater effect on the materials
series shown in Chart 3 than on the total shown
in Chart 2. More refined comparisons of the
production and use of energy materials for industrial processing are presented later.
The marked divergence between the production measures shown in Chart 3 has reflected
two major developments. One has been the
rapid growth in electricity production. Most of
this has been in output for residential and com-
3 | PRODUCTION of ENERGY by INDUSTRIAL STAGE
RATIO SCALE, 1967=100
140
120
100
80
U.S. ENERGY SUPPLIES A N D
853A
USES
MAJOR DOMESTIC ENERGY FLOWS IN 1967
] = T R I L L I O N BTU
PRIMARY SOURCES
PETROLEUM REFINING
mercial purposes, which account for more than
half of the value-added data used for the energy
end-products measure; over the same period,
electricity output for industrial use, which accounts for only about one-fifth of the energy
materials measure, has grown—but at a slower
rate than that for nonindustrial purposes. The
second major factor accounting for the divergent
trends is that the shift to foreign sources of
energy has been greater for materials than for
end-products, as will be noted later.
Btu output series. For the purpose of this
study the Btu equivalent of each of the energy
production series in IP has been compiled (third
column of Table 1). It is possible to combine
these data into a gross total Btu output series,
but if that were done, most of the Btu's would
be duplicated because they are represented at
more than one stage of output. This is illustrated
ENERGY END-PRODUCTS
in the accompanying flow diagram for domestic
energy resources in the year 1967.
The left-hand portion of the diagram shows
the major primary sources of energy and their
approximate relative importance in Btu terms.
Flows from these primary sources into intermediate and final uses of energy are shown in the
remainder of the diagram. The three major intermediate uses are for petroleum refining, for
generation and transmission by the electric and
gas utilities, and for output of coke and products. 6
The right-hand portion of the diagram shows
^ h r e e stages are represented in the case of residual
oil produced from domestic crude oil and used to
generate electricity. A substantial portion of coal, however, is represented at only one stage. A gross duplicated total of all of the Btu series in Table 1 would
amount to 92.5 trillion in 1967, which is nearly double
the unduplicated Btu total.
854
FEDERAL RESERVE BULLETIN • DECEMBER 1973
the final disposition of energy for end-product
and industrial processing uses and the volume
of coal exported. The Btu flows for these purposes (third and fourth columns of Table 1)
reflect domestic production only and are less
than total final uses by the amount of net imports.
An unduplicated measure for total Btu output
can be compiled by counting the Btu's only once
in their initial state. This can be accomplished
by combining the Btu data for mineral (or fossil)
fuels (listed separately in lines 15 through 18
in Table 1) with an allowance for the electricity
produced from hydro and nuclear sources (line
28). This yields a total of 55,551 trillion Btu's
in 1967. 7
7
These figures include the Btu's used by industrial
plants for self-generation of electricity and the Btu's
provided by direct sales of natural gas producers to
industrial users. The direct sales data are adjusted to
exclude the amounts of gas used for electricity generation and have been compiled mainly from reports of
the American Gas Association and the U.S. Department
of the Interior. Direct sales are in addition to the volume
of natural gas purchased for distribution and resale by
utilities. Direct sales are not separately measured in the
IP index, but are represented in the natural gas production series.
The data for self-generation of electricity by industry
are implicitly measured in IP, and for the purpose of
this analysis a special value-added weight was derived
Such a measure of total primary energy output
in Btu's for annual and quarterly periods has
been compiled by using IP series and their Btu
equivalents in 1967. 8 In Chart 4 the annual Btu
output series is compared with the total valueadded production measure of energy presented
in Chart 1; both are shown on a 1946 comparison base to indicate more clearly the extent of
differences since then. A third series, the ratio
between IP energy production and primary energy Btu output, is designated as (A)^-(B).
A considerable number of primary energy
Btu's are " l o s t " in their conversion to other
for use with the Federal Power Commission kwh series
for energy generated by industrial plants.
Finally, it may be noted that anthracite is combined
with bituminous coal and classified as an energy material
in Table 1, although for historical purposes anthracite
was classified as a consumer product in the 1971 Edition,
p. S-5. In 1970 use of anthracite by industry (including
electric utility generation) began to exceed use for
residential and commercial purposes.
^ h e s e calculations may be illustrated with the automotive gasoline series in 1967 and 1968. The Btu figure
for that series in Table 1 is 9,671 trillion, which is
based on production of 1,843 million barrels in 1967
multiplied by 5.2 million Btu's per barrel. The IP index
for automotive gasoline in 1968 was 105.2, with
1967=100. This index number multiplied by 9,671
trillion is equal to 10,174 trillion. Similar calculations
for all end-products yield a total of 25,973 trillion Btu's
in 1968 versus the 24,551 trillion figure for 1967.
4 | ENERGY PRODUCTION MEASURES
RATIO SCALE, 1946=100
U.S. ENERGY SUPPLIES A N D USES
energy materials and to energy end-products.
The persistent rise in the ratio reflects mainly
two factors: the relatively larger portion of value
added for the electricity series (generation and
distribution) in the production measure and the
generally faster growth in electricity than in
other energy series. The total weight for the
electricity series in the IP production measure
shown in Table 1 is 36 per cent in 1967.
However, electricity provides a much smaller
portion of Btu supplies.
A second factor contributing to the slower
growth of the Btu series has been the increased
efficiency in electricity generation—mainly in
the 1948 to 1959 interval. During that period
the scale of power generation installations was
greatly increased from the average size of
prewar facilities and the amount of electricity
generated per unit of energy materials consumed
rose about 30 per cent.
The differences indicated here by the ratio
between the primary energy Btu output series
and the IP energy production measure reflect
in large part the markedly different movements
of the production measure component for endproducts, shown quarterly in Chart 3. Average
movements of the IP energy component for
materials behave quite similarly to the primary
energy Btu series—although there are a number
of differences in the series represented and in
their relative importance. Annual differences in
changes since 1954 have usually been less than
0.5 per cent, and a comparison of aggregate
differences over the 19-year period up to 1973
shows that the rise for the energy materials
series has been only 4 per cent larger than that
for Btu's. Since 1970 quarterly movements of
the former series in Chart 3 have shown little
further increase—about the same as the Btu
output series.
Data for four major components of the Btu
output series are shown separately for quarterly
intervals in recent years—including the last
business cycle peak in 1969—in the lower left
panel of Chart 6 (arithmetic scale) on page 857.
In that comparison the output data for natural
gas and natural gas liquids are combined. When
the annual totals for those series are combined
with crude oil, total coal, and hydro and nuclear
electricity, the combination is equivalent to the
primary energy Btu output series in Chart 4.
855A
Foreign trade and new supplies of energy. Because of the continued growth in U.S.
use of energy and the pressure on domestic
capacity for energy output, there has been a shift
to foreign sources in recent years. 9 From Table
2 it is possible to see how major components
of U.S. foreign trade in energy in 1973 compare
with those for 1967. The sizable volume of U.S.
TABLE 2
U.S. FOREIGN TRADE IN ENERGY
In trillions of Btu's
1967
Series
Exports Imports
Net
imports
1973
Net
imports
Total
1,725
5,685
3,960
11,950
Natural gas
1,381
149
84
5
2,317
582
-1,376
2,168
498
-1,200
6,400
1,000
75
25
11
2,489
108
184
2,414
83
173
4,600
700
450
Residual oil
Distillate oil
Aviation fuel and kerosene.
NOTE.—Figures for 1973 partly estimated by Federal Reserve. Basic
data reported by the U.S. Department of the Interior.
exports of bituminous coal has been mainly to
Canada, Japan, and Western Europe. The large
increase in volume of U.S. energy imports since
1967 has been mainly in crude oil, natural gas,
and residual oil. Some other products such as
liquefied natural gas are expected to be imported
in substantial volume in the period ahead.
Total net imports of energy beginning in 1946
are shown annually in the lower panel of Chart
5 (arithmetic scale). There was a net export
balance in 1946-48 and a relatively small net
import balance until 1958, when the import
balance began to increase. After showing a
slow, limited growth through 1970, the rate of
growth in net imports began to rise more sharply
and in 1973 reached 12.8 quadrillion Btu's.
The upper panel of Chart 5 indicates that there
was little rise in the relative importance of net
9
Where used in the accompanying charts and tables,
data for energy imports and exports are expressed in
Btu terms at seasonally adjusted, annual rates. The data
for Chart 6 and Table 2 are broadly equivalent and have
been compiled from reports of the U.S. Department of
the Interior and of the Bureau of Census. The net import
figures used in Chart 5 have been compiled from the
annual net trade data published in U.S. Energy Through
the Year 2000 (U.S. Department of the Interior, December 1972). These data are more inclusive than the
figures in Table 2.
FEDERAL RESERVE BULLETIN • DECEMBER 1973
856
5 | ENERGY: OUTPUT, NET IMPORTS, and NEW SUPPLY
1947
'49
'51
'53
'55
'57
imports during the period 1959 through 1970—
the change was from 6 to 8 per cent—and that
more significant increases occurred in 1971 and
1972. Then in 1973 such imports reached about
16.5 per cent of the total new domestic supply
of energy. These calculations were made by
combining net imports of all energy—including
petroleum products and the primary energy
series for crude oil and natural gas—with the
primary energy Btu output series in Chart 4.
The resulting measure for the total new domestic
supply of energy will be referred to henceforth
as the "new energy supply." 1 0
The new energy supply series, shown annually in Chart 5, is presented quarterly in Chart
6 (upper left panel). Chart 6 also shows the
components—the individual Btu output series
(lower left panel, with data for coal both as a
total and minus exports), and import series for
10
In Table 3 the production figures for 1967 are
repeated from Table 1 and combined with net imports
for that year to provide the new supply figures shown
in the final column for the various major energy subtotals involved in this study. For the total in 1967 the
amount is listed as 59,511 trillion Btu's (55,551 +
3,960) rather than the sum of primary energy output
and imports only in the form of primary energy (1,294).
'59
'61
'63
'65
'67
'69
'71
'73
oil products, crude oil, and natural gas in Btu
terms (middle left panel).
Chart 6 provides a broad outline of the analytical approach used by this study of the U.S.
energy situation. Thus, seasonally adjusted IP
indexes and foreign trade data in barrels (oil),
TABLE 3
U.S. NEW SUPPLY OF ENERGY IN 1967
In trillions of Btu's
Line
No.
Series
Production
(from
Table 1)
1
Total
0)
2
5
12
Energy end products
Distillate oil
Aviation fuel and
kerosene
24,551
4,686
13
14
15
16
17
Energy materials
Mineral fuels
Coal
Crude oil
Natural gas
22
23
Other energy materials.
Residual oil
26
Primary energy
29
35
For use in industrial
processing
Total final uses (2 + 29)..
Net
imports
New
supply
3,960
59,511
256
83
25,807
4,769
1,670
173
1,843
53,124
14,174
18,100
18,753
3,704
1,290
-1,376
2,168
498
54,414
12,798
20,268
19,251
3,778
1,735
2,414
2,414
6,192
4,149
55,551
1,290
56,841
19,245
43,796
1,038
1,294
20,283
45,080
1
See note in text, page 856.
NOTE.—Sources are same as for Table 1.
U.S. ENERGY SUPPLIES AND USES
RECENT QUARTERLY MOVEMENTS
in U.S. ENERGY
NEW SUPPLY
FINAL USES
QUADRILLIONS OF Btu's
H
1
CONVERSION LOSSES, etc.
1973
1969
857A
tons (coal), cubic feet (natural gas), kilowatt
hours (electricity), and therms (gas utility sales)
are expressed in Btu's at annual rates and are
combined to provide the total new supply series
in the top left panel.
Btu data have also been used to compile two
series for energy use—one for end-products and
one for industrial processing, as described later
in this study. The two new series on energy
use are shown separately in the right panel and
are combined to provide a total. Quarterly differences between the latter total and the total
new supply series are plotted in the lower right
panel as a measure of "conversion losses,
etc.," which is described on page 868.
The series for new energy supply increased
at a steady rate of about 5 per cent a year over
the 1964-70 period. This represented an accelerated rate of increase in new supplies and uses
as compared with the earlier post-World-War-II
period and reflected mainly the rapid increases
in industrial processing that accompanied the
unprecedented 7-year industrial expansion during most of the Vietnam war period. The earlier,
slower growth in energy reflected in part the
previously noted increases in efficiency in electricity generation and the deeper, recurring cyclical adjustments in industrial processing uses.
Visible stocks of energy. Monthly and
quarterly changes in physical stocks of energy
are largely seasonal in nature. 11 For the most
part, annual changes in new energy supplies
appear to have been fairly close to changes in
final consumption. Although there have been
fairly large changes in the visible stocks data
in certain years, some of these changes, as
indicated in footnote 11, are of questionable
value in measuring energy consumption. It is
necessary to interpret reported changes in visible
11
The compilation of detailed allowances for changes
in energy stocks to measure energy consumption more
closely might yield more stable results than are provided
by some of the production and final uses series.
Nevertheless, such adjustments would necessarily be
incomplete and in some periods would reflect sizable
discrepancies in data. For example, see the unaccounted-for amounts of changes in consumption of coal
from 1947 to 1948, from 1953 to 1955, and from 1964
to 1965 and of petroleum from 1959 to 1960 and for
some other years, as shown in Table 17 of U.S. Energy
Through the Year 2000.
858
FEDERAL RESERVE BULLETIN • DECEMBER 1973
stocks of energy with considerable reservation,
mainly because of the limited sample of reporting industrial establishments in the case of coal
and the lack of reports on the considerable
volume of "invisible" stocks of petroleum
products. These are stocks held by distributors
and by business and government establishments
and households. Such holdings have probably
grown fairly steadily over the past several decades, in line with the increased use of petroleum
products by these groups.
During short-run periods of cyclical changes
in demands and prices in the past, invisible
stocks of goods have usually tended to move
inversely in comparison with the visible stocks
data. Hence in recent months the prospects of
energy shortages probably have influenced consumers to accumulate energy stocks, while visible stocks have changed little or been reduced.
Some evidence of these increases in invisible
stocks is provided by preliminary data on the
" d e m a n d " for distillate and residual oils. According to those statistics, demand for the 3
months ending October was running 16 per cent
above its year-earlier level. It is unlikely that
actual consumption of those products would
have increased by more than one-third of that
figure.
Available data on visible energy stocks have
been combined on a Btu basis in Chart 7. From
the chart it is possible to see broad movements
in such stocks over the post-World-War-II
period and to compare changes in these stocks
with the growth of new energy supplies. 12 It
may be inferred from this chart that visible
stocks in recent years have amounted to a little
more than a 2-month supply. These data, it
should be noted, relate only to fossil fuels, and
they include imported as well as domestically
produced supplies. It is also of interest to observe that these visible stocks of energy have
been declining relative to new supplies (or sales)
since the 1950's—as has been generally true for
inventories of goods as reported by business.
Since the energy stocks series is only partial
and since it includes both materials and products, it cannot very appropriately be used to
adjust either the new supply or final uses data.
The figures employed in this study for electricity
12
Basic stocks data are reported for (1) natural gas
in storage reservoirs by the American Gas Association;
(2) fuel oil stocks at electric utilities by the Federal
Power Commission; and (3) bituminous coal stocks at
electric utilities, manufacturing, and mining establishments, and retail dealers; and crude oil, unfinished oils,
natural gasoline, and refined products, at refineries and
bulk terminals, by the U.S. Department of the Interior.
7 | ENERGY: STOCKS and NEW SUPPLY
RATIO SCALE, QUADRILLIONS OF Btu's
14
12
10
8
RATIO SCALE, QUADRILLIONS OF Btu's
859A
U.S. ENERGY SUPPLIES AND USES
and gas utility sales and industrial self-generation, however, do represent actual consumption,
and they account for nearly one-half of the final
uses total shown in Table 1.
Petroleum: Oil and gas well-drilling and
output. Movements in the components of primary energy production in this country in recent
years have been quite diverse. Coal production
has been fairly stable over the past decade.
Meanwhile, the changes in output of natural gas
and petroleum have usually been wider than
those for coal—except for strike-effects in the
coal industry. Although recent reports have
noted a 4 per cent decline in coal output in the
first half of this year compared with the same
period of 1972, the current supply situation for
coal is not that unfavorable. In the earlier
period, output of coal had been at moderately
advanced levels, and since the first half of this
year it has expanded again. Meanwhile, coal
exports have fallen off in recent months so the
new supply of coal available for domestic use
has been running about 9 per cent above a year
earlier.
During the 1963-67 period there was a
marked decrease in oil and gas well-drilling
activity, and a renewed downturn occurred in
1970 and early 1971, as indicated in Chart 8. 13
Since then there has been a sizable recovery in
well-drilling activity, however, and by the
fourth quarter of 1973 such activity somewhat
exceeded the 1969 level.
A total measure of oil and gas extraction,
compiled by combining five component IP indexes with Btu weights, is shown in Chart 8
on a quarterly seasonally adjusted basis. Expansion in such extraction ended in 1970, and
a downturn occurred in the second half of 1971.
In 1972 extraction rose again as State oil-allowable quotas in Texas were raised to 100 per cent
of legally established maximum efficient rates.
Since then, however, increased output in that
State has been offset in part by the decreases
that have continued in other oil and gas fields.
Refinery capacity and operations. In addition
to the near-limits reached in production of do13
The well-drilling series is based on quarterly
averages of the monthly seasonally adjusted IP index
for oil and gas well-drilling activity adjusted to annual
data on the total footage of wells drilled.
8 I OIL and GAS PRODUCTION
RATIO SCALE, MILLIONS OF FEET
00
80
60
40
20
RATIO SCALE, QUADRILLIONS OF Btu's
45
40
35
mestic mineral fuels, petroleum-refining capacity considerations have had important effects on
output of oil products from both domestic and
imported crude oil (with the sulfur content of
the available crude representing an additional
problem). Refinery capacity increased by about
one-fifth from the end of 1967 to the end of
1972. This was a higher rate of capacity expansion than during the earlier part of the 1960's,
but the further expansion—one-tenth—in refinery operations since 1970 has almost entirely
eliminated the earlier capacity gap, as shown
in Chart 9. 14 The lack of further expansion in
refinery capacity, which resulted from interrelated industry and public policies, was a factor
limiting supplies of gasoline and other major
oil products earlier this year. National levels of
refinery operations reached an average of 99 per
cent of capacity in the second quarter of 1973.
Production and imports of petroleum products. An over-all picture of quarterly changes
in production and imports of petroleum in recent
years is provided in Chart 10; the data are shown
14
These data are based on Federal Reserve compilations from American Petroleum Institute and IP indexes
for the oil refining total (SIC 291,9). It may be noted
that during the past summer a number of major companies announced plans to increase refinery capacity substantially further.
FEDERAL RESERVE BULLETIN • DECEMBER 1973
860
9 | PETROLEUM REFINING
RATIO SCALE, 1967 0UTPUT=100
CAPACITY
^ S ^ S '
-^^PRODUCTION
i
r
1949
BUN' i H H H H N H H h B H H W H I • H B B
'51
'53
'55
'57
'59
'61
on an arithmetic scale and are expressed in
millions of barrels per day (seasonally adjusted),
which facilitates comparisons among individual
products and with crude oil. For crude oil the
series on output and imports from Chart 6 are
combined in the left panel of Chart 10 to show
total new supply and the increased dependence
on imports since mid-1971.
These crude oil supplies provide the input for
the refinery production index in Chart 9
(1967=100), which is compiled by combining
IP indexes for major products with value-added
weights. Production of the same major refinery
products is shown in the center panel of Chart
10, but here the total is expressed in number
of barrels, which results in reducing the relative
importance of gasoline. The figures in the center
panel of Chart 10 indicate the moderately
growing U.S. dependence on total imports of
refined products since 1969; this dependence
showed some acceleration in the second half of
this year.
The volume of automotive gasoline has
usually accounted for about one-half of total
refinery production, while the volume of distillates—mainly used for heating and other endproduct purposes, including diesel fuel—has
accounted for around one-fourth. The step-up
in refinery operations to increase domestic supplies of gasoline earlier this year is shown by
mBbM HUHH H mII r • 1
'63
'S5
'67
'69
I
'71
1 1
'73
the sharply advanced levels of gasoline production in the second and third quarters, which was
achieved in part by curtailing output of other
products. It may be noted in passing that nearly
all of the imports of aviation fuel are held in
bond for use in international traffic rather than
for domestic use.
The supply of residual oil, which has been
used mainly by the electric utility industry and
for industrial processing purposes, is dependent
largely on imports; measured in barrels, such
oil supplies account for about 75 per cent of
total imports of refined products. The volume
of residual oil used for heating purposes, which
has amounted to about 20 per cent of the total
in recent years, cannot be shown in this chart
since such data are not available separately for
domestic and import sources.
In considering the prospective effects on domestic supplies of the expected major curtailments in Middle East oil shipments, it may be
noted that such shipments have accounted for
only a portion of the increased volume of U.S.
imports over the past couple of years. It is
uncertain how deep and how long the curtailments may be and what influences these curtailments may have on alternative sources of U.S.
imports.
The following section provides a summary of
the official appraisal of the outlook.
U.S. ENERGY SUPPLIES AND USES
861A
10 I PETROLEUM: NEW SUPPLY, IMPORTS, and PRODUCTION
REFINERY PRODUCTS
CRUDE OIL
MILLIONS OF BARRELS PER DAY
t
i
»
i
•
M
M
Miscellaneous Products
1969
1971
1973
• • • •
1969
1971
Aviation Fuel and Kerosene
.'I
1973
•
1969
t
1971
I
I
1973
o
FEDERAL RESERVE BULLETIN • DECEMBER 1973
862
Domestic demand for petroleum products.
An aggregate of the major petroleum flows
shown in Chart 10, with a summary of the
near-term total petroleum situation as provided
by recent official statements, is presented in
Chart 11. The left panel shows quarterly average
data for total domestic demand for all oils, as
published monthly by the Department of the
Interior in millions of barrels per day without
seasonal adjustment. The bottom line, called
''domestic production," represents largely
crude oil and natural gas liquids (in the data
shown in Chart 6, the latter figures were included as a component of total natural gas and
gas liquids output). The differences between the
domestic production and the total demand data
are total imports of crude oil and of refined
products, shown separately in Chart 10.
Figures plotted in the upper curve for the
fourth quarter of this year and the first quarter
of next year in the left panel of Chart 11 show
the levels cited in the material accompanying
the Presidential statement of November 25 as
being those that demands would have reached
had petroleum supplies not been limited by the
Middle East embargoes. This chart also indicates the official estimates of the amounts of
the shortfalls that were projected to develop as
a result of prospective declines in imports.
These were put at 1.4 million barrels per day
in the fourth quarter of 1973 and 3.5 million
in the first quarter of 1974. Although the last
u
11
DOMESTIC DEMAND for
PETROLEUM PRODUCTS
RATIO SCALE, MILLIONS OF BARRELS PER DAY
tankers were expected to arrive from the Middle
East by late November, the latest weekly figures
available—those through December 7—indicate
little over-all reduction in total imports of petroleum to that date, and fourth-quarter average
imports are estimated to be close to their thirdquarter record levels.
The extent to which the projected shortfalls
develop remains to be seen. It is possible for
example, as was noted earlier, that in the fourth
and first quarters the expansion in petroleum and
other energy uses may not continue to increase
as much as during the earlier recovery period
from the 1969-71 recession. Moreover, other
factors may affect production and demand in
varying degrees, depending on circumstances—such as the extent and direction of
variations from normal in this winter's temperatures, development of alternative sources of oil
supplies, amounts by which domestic and
foreign stocks of oil will be drawn down, impact
of higher prices, and effects of conservation
efforts.
The right panel of Chart 11 shows the same
quarterly petroleum series in barrels on a seasonally adjusted basis. The official projections
of the unadjusted data for the fourth and first
quarters have been seasonally adjusted by the
Federal Reserve. The problems of developing
adequate seasonal adjustment factors in a period
of limited supplies are greater than under more
usual demand and supply conditions. For these
and other reasons it is fairly uncertain what the
official projected shortfalls may be on a seasonally adjusted basis, but should they develop in
these amounts, the volume of takings would be
at about 1971 levels.
ENERGY USES
\MM
^
DOMESTIC PRODUCTION
New supply of energy relative to total
production. As noted earlier, total energy use
is a combination of (1) the fairly steady expansion in energy end-products and (2) the more
volatile growth of energy used in industrial
processing. The rates of change for the second
purpose have varied considerably from time to
time, and there have even been short-term decreases for 6 months or so. Thus, in periods
of sharp curtailments in business inventories,
which have usually been largest in industrial
U.S. ENERGY SUPPLIES AND USES
863A
materials, cutbacks in both production and use
of energy may be significant because such industries as basic chemicals, paper, and primary
metals are heavy consumers of energy. Such
cutbacks did not occur during the 1969-71 economic readjustment, however, largely because
business inventories of industrial materials were
not reduced. During that period, continued inflationary expectations were a factor limiting the
cutback in such inventories.
During the second quarter of 1973 domestic
production of such major materials as cement,
chemicals, paper, petroleum products, and primary metals—groups that together account for
a very large portion of total industrial energy
requirements—reached near-capacity levels. In
view of the limited domestic supplies of energy
it is possible that production of these major
materials could not have been expanded much
further even if their manufacturing capacity had
been more adequate. Also, since production of
such materials reached near-capacity, it is unlikely that large additional increases in energy
use for those purposes will be needed until
manufacturers add to their capacity to produce
such materials.
Chart 12 provides a comparison of changes
in relationships between the total new energy
supply (from Chart 5) and industrial developments as measured by total IP. The initial year
shown (1946) is used as the comparison base
in order to limit the crisscrossing of the series
plotted; use of 1946 also provides more sustainable production-consumption relationships
because there was less accumulation of primary
energy stocks in 1946 than in 1947. Moreover,
it provides a better perspective on the 1948-49
industrial readjustment and on economic developments over the following decade.
In this comparison it should be noted that IP
includes output of the electric and gas utility,
coke, and petroleum refining industries as well
as output of the energy materials used to supply
those industries. This representation affects the
movements of IP relative to energy as measured
by a ratio between the two that is designated
(A) -5- (B). Mainly because of the increased
efficiency in generating electricity, this ratio
rises about one-fourth from 1946 tp 1953. During most of the period since then, but exclusive
of the 1965-71 period, there has been a further
irregular upward trend in the relationship of IP
12 | ENERGY RELATIVE to IP and REAL GNP
~
~
^
—
—
—
—
—
c
a
l
e
1946=100
864
FEDERAL RESERVE BULLETIN • DECEMBER 1973
to energy supplies. As will be discussed later,
the high plateau reached from 1965 to 1969
reflected shifts in the composition of IP during
that period, which were subsequently reversed
in 1970-71.
From 1971 to 1972 IP increased 7 per cent
and then rose further by about 9 per cent in
1973. Over the past year, however, the new
energy supply increased only about 3.5 per cent.
Consequently, the ratio of IP per unit of energy
increased further in this period, following a rise
in 1972 from the reduced level in 1971, to about
5 per cent.
These results, based on changes in the relationship of IP to the total new energy supply,
represent a larger proportion of the fluctuations
in industrial use of energy, and they show some
differences in trend, as compared with those in
the relationship of GNP (real GNP -5-.B) to total
new energy supply. 15 From the mid-1940's to
the 1953-62 decade the IP-based ratio was
above the GNP ratio by one-fifth or more, and
during the 1966-70 period the margin widened
to one-third. Following a marked downturn in
both ratios in 1970, the IP ratio was about
one-fifth higher than in the mid-1950's while
the GNP ratio was only about 5 per cent above
its earlier level. If one assumes that IP will
continue its long-term growth relative to the
total economy (as compared with the GNP data
discussed on pages 81-84 in the 1971 Edition),
the rising efficiency of energy utilization since
1971 has important implications for growth in
the industrial sector and in the total economy.
Energy end-products—output, new supply, and value. The remaining charts in this
study have been designed mainly to analyze
energy uses for end-products and for industrial
processing purposes, separately as well as in
combination. Consideration is given first to the
end-product data. According to the annual data
in Chart 13, this series has exhibited a relatively
stable but marked growth for the whole period
beginning in 1946. This series is based on the
Btu data in the third and fourth columns of
Table 1 (lines 2 to 12).16 It is the approximate
counterpart of the value-added IP index for
end-products plotted in Chart 3 and is based on
the same lines in the second column of Table
1. Because the electricity series is relatively less
important in the Btu measure, this energy endproduct series grows much less rapidly than the
value-added production measure.
These data do not support the view that there
has been a significant acceleration in recent
years in the final (nonindustrial) use of energy
in the United States. The Btu energy end-products measure has grown at a fairly steady 4.5
per cent annual rate over the past two decades.
The higher rate that had prevailed in the
1946-51 interval—5 to 6 per cent—reflected in
part post-World-War-II reconversion needs.
Net imports of energy end-products are also
added to, as well as shown separately from,
domestic output in Chart 13. These imports are
mainly distillate oil and aviation fuel. It may
be noted, however, that imports make up a
much less important part of the total for energy
end-products than for energy materials. Although gasoline has been in limited domestic
supply this year, relative costs and other considerations apparently have not resulted in an
appreciable volume of automotive gasoline imports, as was shown in Chart 10. It is apparent
from Chart 13 and other data that changes in
total production of energy end-products have
been affected only moderately by cyclical readjustments in the economy.
The value of energy end-products in 1963
totaled $28.9 billion, according to the grossvalue-weighted series in the 1971 Edition of IP.
Allowing for increases both in prices since 1963
and in production since 1967, the value of such
output in the fourth quarter of 1973 is estimated
at an annual rate of about $85 billion, as shown
in Table 4. In addition, an estimated $21 billion
15
Such calculations for the annual amounts of energy
consumption per constant dollar of GNP were made by
the U.S. Department of the Interior beginning in 1947
(Table 2 in U.S. Energy Through the Year 2000). The
data in that publication for 4'gross energy" Btu input
move similarly to the annual series for new energy
supply shown in Chart 12.
16
To represent more adequately the importance of
these uses, sales of residual fuel oil for heating, vessels,
and military purposes—amounting in 1972 to about 2
quadrillion Btu's, or 5 per cent of the total—have been
added to the end-product series in Charts 6 and 13 and
subtracted from industrial processing, as footnoted on
p. 866.
865A
U.S. ENERGY SUPPLIES AND USES
TABLE 4
VALUE OF OUTPUT OF ENERGY END-PRODUCTS
In millions of dollars
Total.
28,851
52,530
85,450
Consumer fuel
Automotive gasoline
Distillate oil
11,762
8,895
2,867
17,640
13,570
4,070
36,210
26,710
9,500
Consumer utilities
Residential electricity
Residential gas
9,211
5,651
3,560
19,580
14,240
5,340
25,120
18,130
6,990
Other energy products
Commercial and other electricity
Commercial and other gas
Aviation fuel and kerosene
7,878
4,370
1,104
2,404
15,310
10,320
2,090
2,900
24,120
13,180
2,740
8,200
NOTE.—Data for 1963 compiled from Industrial Production, 1971 Edition, Table
A - l . Federal Reserve estimates for Q4 1973 are at seasonally adjusted annual rates,
based on data from U.S. Department of the Interior and U.S. Department of Labor.
was expended in the final distribution of these
products, including mainly payment of various
State and local taxes on automotive gasoline.
This would make total final expenditures in the
fourth quarter of 1973 about $106 billion or 8
per cent of total GNP. Although these expendi-
tures are largely of a nondeferrable nature, of
more importance to total economic activity over
the longer-run period are the problems of expanding supplies of energy materials from domestic and import sources and also of expanding
petroleum-refining capacity.
13 | ENERGY END-PRODUCTS
RATIO SCALE, QUADRILLIONS OF Btu's
866
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Industrial processing and energy uses. A
new annual measure of industrial processing per
unit of energy has been compiled back to 1946,
as shown by the ratio (A) -r- (B) on a 1946
comparison base in Chart 14. This chart also
presents a series for industrial processing and
an energy series from which the ratio was developed. The industrial processing series represents all manufacturing, mining, and utility activities (total IP) except for the energy production series listed in Table 1. For the most
appropriate comparison of available energy with
the industrial processing measure, data are excluded on energy produced for use by the utility
industries and for conversion within the manufacturing sector to other forms of energy, as in
the case of coke and petroleum products. 17
Chart 14 indicates that industrial processing
per unit of energy has increased by about 140
per cent since 1946. There was a rapid expansion from the late 1940's to the mid-1950's.
Subsequently the average rate of increase
17
For this purpose allowances are made to exclude
the amounts of coal, oil, and natural gas used by the
electric and gas utilities. This is accomplished by including only the amount of natural gas production sold
directly to nonutility industries, as was noted on page
854, and by excluding the quantities of coal and feul
oil that are reported to be consumed by the utilities (for
the whole interval covered in addition to the 1967 base
period shown in Table 1). Since separate data are not
available on the volume of fuels consumed by industrial
self-generators, there is some overstatement in the Btu
figures available for use in industrial processing.
Also data for crude oil, natural gas, and natural gas
liquids are not included in this comparison of new
supplies of energy available for industrial processing
because they are used mainly in the production of more
advanced energy materials and of energy end-products.
Coke is not included because it is produced from other
energy materials.
The energy materials that are combined for industrial
processing are shown in Btu terms for 1967 in the
supplementary subtotal in Table 1 (lines 29 to 34).
These data as plotted in Charts 6 and 14 are adjusted
for exports of coal and imports of residual oil. Also,
as was footnoted on page 864, these data exclude sales
of residual oil used for heating, for vessels, and for
military purposes.
Because of the actual and prospective strike influences affecting coal and steel output in 1971, data for
the coal component of the industrial processing series
have been interpolated quarterly for 1971 on the basis
of Department of the Interior data on nonutility industrial consumption of coal and IP indexes for materials.
Some additional adjustments were made for 1972 and
1973 to provide a better approximation of nonutility
industrial consumption of coal.
slowed to about 4 per cent per year until the
mid-1960's. Thereafter, further increases were
followed by decreases in 1967 and 1970, but
data for 1971-73 indicate a renewed rapid rate
of expansion.
The advanced level of the relationship during
the 1965-69 period reflected in part the sharply
increased levels of defense equipment in IP.
Production of business equipment, partly for
related reasons, also reached advanced levels
during that period. Production of equipment
requires much less energy per unit than either
consumer goods or the industrial materials
needed in their production (equipment represented one-fifth of IP in 1967, but only a small
percentage of total energy used by industry).
The major curtailments during the 1969-70
industrial readjustment were in production of
equipment (both business and defense); the
over-all decline amounted to 18 per cent—about
as much as in any other postwar period (1971
Edition, page 17). However, in contrast to earlier postwar readjustments there was little curtailment in either production or business inventories of major industrial materials.
Industrial processing activity, as represented
by total IP excluding energy, declined by 5 per
cent from 1969 to 1970, as shown in Chart 14.
With the energy supply rising 4 per cent further,
a drop of 8 per cent occurred in the ratio of
industrial processing to energy. This drop was
followed by some recovery in the ratio in 1971
and sharp increases in 1972 and 1973. These
appear to have been made possible in part by
a marked increase in business equipment production; such activity, which has been a major
factor in the expansion of industrial production,
requires relatively smaller amounts of energy, as
was previously noted. Also, much higher costs
and limited supplies of energy have apparently
stimulated major efficiencies in energy use by
industrial users.
A quarterly breakdown of the major energy
uses represented by components of the Btu
measure of energy for processing, as presented
in Charts 6 and 14, is provided for recent years
in the left panel of Chart 15 (arithmetic scale).
The gas component is by far the most significant—with about three-fourths of its total amount
represented by gas utility sales to industrial
establishments and the remainder by direct pur-
867A
U.S. ENERGY SUPPLIES AND USES
14 | INDUSTRIAL PROCESSING and ENERGY
RATIO SCALE, 1946=100
TOTAL INDUSTRIAL PRODUCTION
EXCLUDING ENERGY (A)
^
E N E R G Y F O R P R O C E S S I N G (B)
chases of industry. The latter are reported only
for annual intervals.
Coal uses for industrial processing, exclusive
of the amounts used to generate electricity for
industrial consumption, are shown in this chart
to have been of declining importance, but they
still account for about one-fifth of the total,
which amounted to about 19.5 quadrillion Btu's
in 1973 (Chart 6). Residual oil uses for industrial processing showed only a small percentage
gain from 1971 to 1972, and by 1973 such uses
probably still amounted to about 5 per cent of
the total. 18
Electricity used by industrial establishments—including amounts for lighting and air
conditioning, as well as for motive and processing purposes—accounts for only about oneeighth of the Btu's consumed by industry, but
such energy serves a great many convenient and
unique production purposes. A hitherto unpub18
These relate only to "industrial" uses as classified
in the U.S. Department of the Interior release "Fuel
Oil Sales, Annual." Including all uses of fuel oil by
manufacturing and mining establishments, the preliminary Census figures for 1971 indicate a total of 268
million barrels. Adding petrochemical and other petroleum uses, the total amount was probably about 2
quadrillion Btu's.
lished quarterly breakdown of data for industrial
consumption of electricity is discussed below
in connection with Chart 16.
Some perspective on these uses of energy for
industrial processing is provided in the right
panel of Chart 15, which shows quarterly data
in Btu terms on the amounts of energy, by type,
used by the electric and gas utilities. There too,
of course, natural gas is of overwhelming importance. About one-half of the total volume
of gas distributed by the gas utility industry is
shown (in the left panel) to have been sold for
industrial purposes, while the remainder is sold
for residential and commercial and other uses.
Coal use for electric utility power generation
has continued to grow strongly over the past
year. Reported data on use and stocks of gas
and oil by electric utilities since December 1972
have not yet been tabulated by the compiling
agency. By the end of last year the volume of
natural gas use accounted for about one-fourth
of the total and the amount of fuel oil use was
even less. In 1972 nearly 90 per cent of the
oil was represented by residual types.
The prospect of a strike in the steel industry
beginning August 1, 1971, affected both demand for and output of industrial energy within
FEDERAL RESERVE BULLETIN •
868
1 5 | MAJOR IP USES of ENERGY
INDUSTRIAL PROCESSING
BY ENERGY SOURCE
UTILITY USES OF ENERGY
QUADRILLIONS OF Btu's
GAS UTILITIES
GAS, TOTAL
ELECTRIC UTILITIES
GAS UTILITY SALES
COAL
COAL
ELECTRICITY
RESIDUAL OIL
DECEMBER
1973
that year. It was a dominant influence on coal
production because the iron and steel industry
accounts for about one-half of the coal (and
coke) used in manufacturing. Therefore, output
of energy for industrial processing was at a
relatively high level during the first half of
1971—despite the general recession in economic activity—and then it declined in the second half.
These recent developments for both industrial
processing and energy end-products are summarized by the quarterly movements in the
upper right panel of Chart 6. The series for
"Conversion losses, etc." reflects energy losses
in conversion and transmission, output of nonfuel products such as chemicals and lubricants
produced from energy materials, changes in
industry stocks (both reported and invisible),
and any statistical discrepancies. The series
shows a substantial, irregular growth, but its
relative movements are fairly close to the
movements of the total new supply series, as
is indicated by the changes shown in Chart 17.
FRS electric power data. A major supplemental source of information on current uses
of energy for industrial processing is provided
by the Federal Reserve monthly series on electricity classified separately by about 200 S.I.C.
industries. The data collected by the 12 Federal
Reserve Banks are based on a combination of
kilowatt hour sales by electric utilities (including cooperatives and government agencies as
well as investor-owned companies) and the
number of kilowatt hours provided by industrial
self-generation (which in some districts is supplemented by reports from the Federal Power
Commission).
These series are in the process of detailed
review prior to their publication for the period
beginning in January 1963. Although still preliminary, the data are presented as quarterly
averages in Chart 16 (arithmetic scale) for major
industrial markets. They show the relatively
limited amounts of total electricity consumed by
the equipment industries and the large use of
electric power—about seven-tenths in recent
years—in the manufacture of industrial materials. 19
19
This footnote appears on page 869.
869A
U.S. ENERGY SUPPLIES AND USES
OVER-ALL CONDITIONS
After a review of the longer-run pattern of
changes in output and in use of energy for
19
In IP one-half of Atomic Energy Commission production is assigned to materials and the remainder to
end-products and for industrial processing, a
summary of developments in the past decade
seems in order. Chart 17 provides such an
defense equipment. This is a statistical measurement
convention, which has not been employed to allocate
AEC purchases of electricity.
16 | ELECTRICITY USE by MAJOR INDUSTRIAL MARKETS
MATERIALS
PRODUCTS
MMm
CHEMICAL, PAPER, TEXTILE, AND
OTHER NONDURABLE MATERIALS
EXCLUDING AEC
PRIMARY METALS
CONSUMER GOODS
OTHER DURABLE GOODS MATERIALS
EQUIPMENT
FEDERAL RESERVE BULLETIN • DECEMBER 1973
870
1 7 j TOTAL ENERGY
CHANGES IN VISIBLE STOCKS
10
.
over-all comparison, on a quarterly basis, of
developments beginning in 1963. All of the
underlying data used for this chart are based
on Btu's at seasonally adjusted annual rates.
Total energy—new supply and uses. The
two series in the top panel of Chart 17 are the
same as those plotted in the top panels of Chart
6. The new supply series is expressed in quadrillion Btu's, while the series for final uses is
expressed as an index number—with new supplies in 1967 (60.6 quadrillion Btu's), adjusted
for changes in energy stocks in that year, equal
to 100. The choice of 1967 as a comparison-base year is advantageous because it was
a period when new supplies of energy exceeded
the amount used, and there was some accumulation of stocks—typical in a growing industry.
It is also the year generally used as the comparison-base period for official index numbers.
The determination of the amount of adjustment needed for over-all changes in energy
stocks in 1967 is necessarily arbitrary for the
reasons discussed earlier. The adjustment
employed here is mainly a device to recognize
the differences in levels between the new supply
and the final use series in Chart 6, which represent the fossil fuel losses involved in electricity
conversion and transmission and the remaining
items mentioned above. The amounts of those
differences appear to be largely proportionate
to changes in the new supply series, as is
demonstrated by the broad similarity of behavior
of the two series in Chart 17. Except mainly
for several quarterly intervals when there were
major strikes, the two series indicate a rough
correspondence in quarterly movements back to
the beginning of 1963. Changes in visible energy stocks are also shown, in the bottom panel,
and they usually indicate no significant relation
to differences in the movements between the
series for new supply and final uses.
In recent years the new supply series has
expanded more than the final use index. The
difference reflects in part the large relative shifts
in the Btu's used for industrial processing, the
further sustained growth in electricity for endproduct uses (and added conversion losses reflected only in new supplies), and a faster rise
in petrochemical uses. A remaining but indeterminant amount probably reflects the still preliminary nature of the energy data for the past
2 years. 20
The index for final uses shows a relatively
steady annual rate of growth—between 4 and
5 per cent—from 1963 until late 1970 when
there was a leveling off. At that time decreases
in industrial processing began to offset further
increases in end-products. The upturn was renewed in 1972 when IP began to rise rapidly.
Since 1969 the over-all annual rate of growth
in energy use has been about 3 per cent. From
the fourth quarter of 1971 to the third quarter
of this year, during the renewed expansion in
the economy, the rate of rise was fairly steady
at about 4 per cent. The fourth-quarter average
is expected to be off somewhat—with weekly
data indicating declines beginning in the latter
part of November.
The new supply series continued to expand
in the first half of 1971, reflecting in part a
marked accumulation of energy stocks. This
accumulation was sharply curtailed by the strike
in the coal industry during the fourth quarter
of that year. After a recovery in coal production
20
For the purposes of this study some revisions have
been made in the gas utility sales series for 1971-73
that have not yet been carried into the presently published IP indexes, and a projection for direct sales of
natural gas to industry in the recent period has been
estimated in advance of the publication of all of the
related data. This projection is based on a comparison
of the total new supply of natural gas and sales by the
gas utility industry.
870A
U.S. ENERGY SUPPLIES AND USES
and increases in domestic output and imports
of oil and gas, the supply series reached a new
record level by mid-1972. Subsequently there
was little change, with the margin between the
supply and use measures reaching its narrowest
point (since the 1971 strike) in the second
quarter of this year. Some expansion in the
second quarter was followed by a larger rise
in the third quarter and by a leveling off in the
fourth.
Seasonal and other considerations. All of
the charts in this study that show annual data
and those based on quarterly seasonally adjusted
series do not indicate the relatively large seasonal fluctuations in consumption and output of
energy. Nor do they show the wide ranges in
the geographical dispersion of those movements
owing partly to extremes in weather and temperatures. Seasonal fluctuations range from
monthly and weekly intervals to only a few
minutes in the case of regional demand peaks
for electricity.
In addition there are many major problems
relating to the proximity to, and ownership of,
sources of energy—both within this country and
abroad. These and various other considerations—such as cost-price relations, foreign
trade policies, pollution problems, and so
forth—are all factors in maintaining an adequate
flow of energy for domestic purposes.
The official projections of energy use
have assumed a full-employment growth rate
for real GNP of 4.3 per cent a year to 1980
and 4 per cent thereafter. 21 The actual average
rate of increase in real GNP from 1946 to 1971
was 3.7 per cent a year. If the growth rate
should turn out to be less than assumed, the
margin of prospective energy supplies may be
larger than has been indicated by those projections.
It may be noted that all of the energyuse comparisons in this study are based on
longer-run historical relationships and that such
relationships may change in the period ahead
as a result of developing market and technological factors. For nearly all of the time
period used in these comparisons, energy supplies were relatively ample and cheap. In another period, such as one of higher costs and
more limited supplies, unforeseen developments
in both uses and supplies of energy are likely
to occur.
21
From U.S. Energy Through the Year 2000, p. 14.
Higher growth rates are projected for IP in that publication but they apparently were not used in the calculations.
NOTES TO CHARTS
General:
All quarterly data (except those for the left panel of Chart
11) are seasonally adjusted.
The Btu data in Charts 5, 6, 7, 13, and 17 are at annual
rates.
Specific :
Chart 10
Crude oil includes lease condensate. Miscellaneous products
include lubricants.
Chart 13
For a discussion of the coverage of "Including residual o i l , "
see footnotes 17 and 18 to the text.
Chart 11
Figures for fourth quarter 1973 and first quarter 1974 for
demand and for projected shortfalls are taken from materials
accompanying the Presidential statement of November 25,
1973.
Domestic production includes data on changes in stocks and
some other items used to derive the data for total domestic
demand apart from imports.
Chart
15
Figures for residual oil are only annual.
Chart 16
Data are quarterly averages. Figures for Atomic Energy
Commission purchases are those reported by the Federal Power
Commission.
Chart 17
The index for final uses is equated in 1967 to the volume
of new supplies adjusted for changes in stocks.
Treasury and Federal Reserve
Foreign Exchange Operations
Interim Report
This interim report, covering the period August
through October 1973, is the second of a series
providing information on Treasury and System
foreign exchange operations to supplement the
regular series of semiannual reports that are
usually issued each March and September. It
was prepared by Charles A. Coombs, Special
Manager of the System Open Market Account,
and Senior Vice President in charge of the
Foreign Department of the Federal Reserve
Bank of New York.
As related in the previous report, on July 10
the Federal Reserve resumed intervention in the
exchange markets and by the end of July had
sold a total of $273 million equivalent of foreign
currencies—$220 million of German marks,
$47 million of French francs, and $6 million
of Belgian francs. These operations were financed by drawings under the swap arrangements with the respective central banks. Over
the first 2 weeks of August the dollar strengthened as a liquidity squeeze in Germany eased,
interest rates in New York rose, and the market
responded to favorable U.S. trade figures for
June. With this shift in the international flow
of funds, the Federal Reserve readily acquired
through the market the foreign currencies
needed to repay the entire $273 million equivalent of swap drawings incurred in July. The only
intervention by the Federal Reserve during early
August was the sale of $4.2 million of marks,
using existing balances, when the dollar had a
temporary setback on August 7.
The dollar's rise stalled in mid-August when
market worries over price trends and political
uncertainties in the United States surfaced once
again. As more bad news generated new selling
pressure on the dollar on August 20 and 21,
the Federal Reserve reentered the market as a
seller of German marks in order to maintain an
orderly market and moderate any serious erosion
of dollar rates. Over these 2 days and again
briefly later in the month, the System sold a
total of $54.5 million equivalent of marks drawn
under the swap line with the German Federal
Bank, while the German central bank made
modest purchases of dollars in Frankfurt. The
dollar then firmed, and the Federal Reserve was
able to repurchase in the market the German
marks needed to liquidate the swap drawings
on the German Federal Bank.
By late August and early September, trading
conditions had become more orderly, with much
narrower fluctuations in rates from day to day
as well as during trading sessions. In this atmosphere of greater stability the market showed
much improved resilience in absorbing the
shocks of adverse political and economic news
here and abroad. During this period the Federal
Reserve stood ready to intervene on a number
of occasions, but operations were required only
once. On September 6, just ahead of official
announcement of the August wholesale price
figures, the dollar came under some pressure and
the Federal Reserve sold $8.2 million equivalent
of marks, of which $3.9 million was drawn
under the swap line. The dollar then quickly
rebounded, and the System was able to repurchase the marks needed to repay this swap
commitment.
On September 15, the Netherlands revalued
the guilder by 5 per cent against other European
Community (EC) currencies in the fixed-rate
bloc. This move came as a surprise to the
markets, and speculation soon developed over
possible revaluations or devaluations of other
EC currencies. Consequently, there were heavy
flows into the German mark and Belgian franc
and out of the French franc, leading to substantial intervention by the central banks involved
in the EC 4 4 snake." Such speculation in the
871
872
FEDERAL RESERVE BULLETIN • DECEMBER 1973
European currency exchanges soon spilled over
into the dollar market. As the dollar began to
drop, the Federal Reserve again stepped in, in
coordination with the German Federal Bank, to
moderate the decline of the dollar-mark rate.
At the same time, the Belgian and French authorities took monetary and exchange control
measures to curb the pressures on the EC band.
This firm official response effectively broke the
speculative wave, and as dollar rates bottomed
out and began to rise, the Federal Reserve
continued to intervene to help along the recovery. In this sequence of operations, between
September 17 and 26 the Federal Reserve sold
$156.7 million equivalent of German marks
drawn under the swap line, while the German
Federal Bank intervened in Frankfurt by buying
nearly $140 million.
The exchange markets again turned quiet
through late September and early October. Underlying trade and investment flows tended to
buoy the dollar, and as the dollar firmed, the
Federal Reserve was able to purchase sufficient
marks to repay $86.1 million of the outstanding
swap debt to the German Federal Bank. The
improvement in the dollar was again interrupted, however, as short-term interest rates in
this country fell sharply, political uncertainties
heightened, and war broke out in the Mideast.
On October 10, when the news of Vice President Agnew's resignation hit the markets in the
early afternoon, selling pressure on the dollar
intensified. At this point, the Federal Reserve
again intervened with an unusually heavy offering of marks, of which $21 million equivalent
was sold. These sales were financed by a further
drawing under the swap line with the German
Federal Bank, bringing the outstanding swap
debt to $91.5 million equivalent. The dollar then
steadied, and no further intervention in marks
was required through the month-end.
During October, the Dutch guilder moved to
the top of the EC band. The guilder's rise
stemmed mainly from a liquidity squeeze in
Amsterdam, but revaluation rumors began to
circulate once again. In conjunction with the
Netherlands Bank's own sizable purchases of
dollars in Amsterdam, on October 23 the Federal Reserve offered guilders in New York,
selling $2.9 million equivalent drawn under the
swap line with the Dutch central bank.
Late in October, the dramatic shift in the
basic U.S. trading position was underscored by
the announcement of an $873 million trade
surplus for September. By that time, also, interest rates in the United States were on the
rebound and a cease-fire had been negotiated
in the Mideast. Consequently, the dollar came
into strong demand, advancing across the board
against the major European currencies. By the
FEDERAL
RESERVE
REPAYMENTS
SYSTEM
UNDER
DRAWINGS
RECIPROCAL
AND
CURRENCY
ARRANGEMENTS
In millions of dollars equivalent
Transactions w i t h —
National Bank of B e l g i u m ..
Bank of France
German Federal Bank
System
swap
commitments,
July 3 1 ,
1973
Drawings, System
or repayswap
ments ( - ) commitAug. 1
ments,
through
Oct. 3 1 ,
1973
Oct. 1
396.0
4
i_23 8 f
47.0
I
^ q }
2 7 2 - 2
220.5
Netherlands Bank
S w i s s National Bank
565.0
Bank for International Settlements ( S w i s s francs)
600.0
Total
1,828.4
j_
^g\
*"
r
j —630 21
565.0
600.0
1 , 4 3 7
2
NOTE.—Discrepancies in totals are due to rounding.
end of October, the Federal Reserve was able
to purchase in the market sufficient marks and
Dutch guilders to repay fully the $91.5 million
and $2.9 million, respectively, of swap drawings outstanding in those currencies. Thus, for
the period August through October, System
intervention totaled $247.5 million, of which
$238.9 million was drawn and repaid under
swap lines. In summary, since the resumption
of exchange market intervention in July, the
System had drawn and repaid a total of $512.4
million of German marks, French francs, Belgian francs, and Dutch guilders. Coordinated
intervention in the dollar market by the German
Federal Bank over the same period amounted
to nearly $500 million.
In other operations, beginning in August the
FOREIGN EXCHANGE OPERATIONS
Federal Reserve resumed modest daily purchases of Belgian francs in the market to repay
swap drawings outstanding from the National
Bank of Belgium since August 1971. By October 31 some $117.8 million of those drawings
had been repaid, leaving $272.2 million equivalent remaining. Combined with the $1,165
million of Swiss franc swap drawings also outstanding since August 1971, this brought total
System swap obligations to $1,437 million at
873
the end of October compared with $3,045 million outstanding on August 15, 1971.
Finally, the U.S. Treasury redeemed at maturity the last of its mark-denominated securities, a $172.4 million equivalent security held
by the German Federal Bank. The Treasury also
refinanced with the Swiss National Bank a Swiss
franc-denominated security amounting to $63.6
million equivalent originally held by the Bank
for International Settlements.
•
Statements to Congress
Statement by George W. Mitchell, Vice Chairman, Board of Governors of the Federal Reserve System, before the Subcommittee on Bank
Supervision and Insurance of the Committee on
Banking and Currency, House of Representatives, November 26, 1973.
I am pleased to be here to present the views
of the Board of Governors on a feature of the
rapidly evolving payments mechanism in which
you have a particular interest—namely, the way
in which thrift institutions can receive electronic
wage and salary payments in much the same
manner as they now handle salary checks. At
the same time I would like to summarize recent
developments in payments technology and
Board actions bearing on these developments
and to suggest in a very general way where we
seem to be headed in the development of electronic credit and debit transfers.
The problem of immediate concern involves
a broad issue on which the Congress may wish
to provide guidance and a narrower issue of the
mechanics of money transfer. I would like to
set aside, for the moment, the broad issue—that
of the means of participation of thrift institutions
in money transfer—and clarify, if I can, a purely
technical matter of moving funds electronically.
This issue has arisen because savings and loan
associations want to be able to receive their
customers' payroll deposits as electronic payments in much the same manner they now
receive payroll checks. Commercial banks, on
the other hand, in light of their innovative effort
in developing the necessary software and legal
framework, and because they have assumed
liability for transmission errors or failures, have
sought to be satisfied that participation of thrift
institutions would not create complications that
might disadvantage them or their customers.
There is a technical arrangement for crediting
payroll checks to accounts in savings and loan
associations that could function equitably and,
I am convinced, satisfactorily for all concerned.
874
It can be effected quickly and can serve until
the Congress chooses to address itself to the
broader issues involving the role of thrift institutions in the Nation's financial system. Its
implementation now appears imminent. But let
me describe the development and nature of the
new system.
THE DEVELOPMENT OF THE AUTOMATED
CLEARINGHOUSE
In California and in Georgia pathbreaking technical changes are being worked out. These permit the conversion of payrolls from individual
checks—each of which must be sorted, counted,
accounted for and routed by a combination of
low speed machine and hand labor, at substantial cost to all parties involved—to deposit instructions electronically imprinted upon magnetic tape. The electronic instructions are passed
to banks receiving the deposits through automated clearinghouses, quickly, at very low unit
cost, and with much improved certainty and
safety. Savings institutions are now concerned,
and understandably so, about the manner in
which they can receive electronically directed
deposits emanating from an automated clearing
system that they did not create and in which
they are not member participants.
An electronic funds transfer system sponsored
by the California Automated Clearinghouse Association began to function in October 1972.
The Georgia Automated Clearinghouse Association started operations in May of this year. The
California association includes 111 banks in the
Los Angeles-San Francisco area, and the Georgia association includes 178 banks in Georgia.
The two electronic payments associations clear
transfers among their members through automated clearinghouses in which the equipment
is owned and operated by the Federal Reserve
System, in Los Angeles, San Francisco, and
Atlanta. The automated clearinghouse is the
electronic counterpart of check-clearing facili-
ties owned and operated by the Federal Reserve
at 43 locations in the United States.
The electronic facilities at commercial banks
linked to the Federal Reserve automated clearinghouses were privately developed and
equipped over the past several years, with the
advice and technical help of the Federal Reserve, and they now operate at private expense.
Participating banks deliver to the Federal Reserve electronically recorded instructions for the
transfer of funds from one institution to another.
A computer sorts the instructions and makes
deductions from the reserve accounts of banks
from which funds are being transferred, and
credits the reserve accounts of banks to which
funds are being transferred. Electronic messages, tapes, or cards with instructions for debiting or crediting the accounts of individual
customers are made and delivered to participating banks.
These arrangements, again, parallel electronically the debiting and crediting processes that
occur in check clearing. But due to the fact that
little or no paper need be handled, the clearing
is done at a cost in terms of mills per item,
rather than the cents per item cost of paper check
handling. This results in large savings for all
participants, including the Federal Reserve.
A principal use currently being made of these
systems is payroll deposit. An employer
prepares a magnetic tape with instructions to the
employer's bank to make payroll deposits at
b a n k s a n d account numbers supplied b y e m -
ployees. The employer's bank extracts any deposits being made in that bank, and sends the
remainder of the instructions on to the automated clearinghouse. There, as described
above, the pay of other employees is distributed
by electronic processing to their banks and to
their accounts. Since this means of handling
payrolls is a repetitive process, and involves
large numbers of payments, substantial savings—both public and private—can be made,
and it is thus a natural and beneficial application
of electronic transfer.
MAIN LINES OF DEVELOPMENT IN
ELECTRONIC PAYMENT
The electronic payments system now seems to
be developing in the United States along two
main lines. One is directed at meeting the needs
of business organizations and governments that
make income payments in large volume. These
payments are usually repetitive as to recipients
and are preponderantly for wages and salaries,
dividends, interest, annuities, and retirement
and welfare programs. Since the payment function is usually centralized in organizations making such payments, conversion to an electronic
system involves a minimum of disturbance to
existing arrangements. Income crediting is operational today but in very small volumes. There
are, however, active plans to dramatically increase the use of this technique in 1974.
The other chief line of development serves
the needs of the individual consumer whose
payment volume is small, irregular in timing,
and does not originate at a single location, but,
more often than not, occurs at the place of
purchase of some good or service—thence, the
designation, 4 'point-of-sale.''
Point-of-sale
transfer is not operational, except experimentally, in the United States, but there has
been enough study and pilot experience to justify confidence in its operational feasibility.
These two emerging developments accommodate another payments arrangement in which
consumers agree to permit their accounts to be
electronically debited for contractual obligations, such as insurance premiums, rents, mortgage and instalment credit payments, and for
utility bills, credit-card purchases and similar
type payments. The income crediting machinery
is best adapted to these "pre-authorized" payments but "point-of-sale" mechanics could also
be used.
ACCESS BY A PAYABLE-THROUGH
TRANSFER
A feasible and immediately available method of
access to the benefits of electronic transfer for
savings institutions, and one that appeals to us
as being equitable and fair to all, would be an
adaptation of the "payable-through" draft.
Savings banks have been using this technique
for some time. Adapted to electronic transfer,
it can be used for credits as well as debits. To
explain:
Access by a thrift institution to electronic
transfer of funds involving an automated clear875
876
FEDERAL RESERVE BULLETIN • DECEMBER 1973
inghouse w o u l d , in the payable-through
process, involve a number identifying the institution in an operationally feasible way. The
clearinghouse computers would be able to associate deposits bound for a particular savings and
loan with a commercial bank through which the
savings and loan was participating in the clearing and settlements process.
Specifically, an employee wishing to have his
pay deposited automatically in a savings and
loan would provide his employer with the
number assigned to his savings and loan, together with his personal account number. Using
this number, the employer would provide his
commercial bank with instructions on magnetic
tape to deposit the employee's pay in the savings
and loan. The employer's bank would send
taped instructions to the automated clearinghouse. There, the clearing computer would
recognize the identifying number as that of a
savings and loan clearing through a certain
commercial bank. It would credit the payroll
deposit to that bank which, in turn, would credit
it to the indicated savings and loan. This would
be accomplished in the same time span as applicable to customer deposits in a commercial
bank.
The payable-through method would operate
without inconvenience to the savings and loan
depositor: he would be dealing directly with his
savings and loan just as if he carried his check
there for deposit. The commercial bank through
which payment was made would be involved
only as an agent of the savings and loan. The
savings and loan customer would need no contact with the commercial bank to effect pre-authorized deposits in (or withdrawals from) his
account at the savings and loan.
Payable-through clearing would have a further advantage, from the point of view of the
savings and loan and from the point of view
of a competitive financial system. It would permit a savings and loan to select the commercial
bank offering it the most advantageous arrangements—and to change its agent bank if it
wished—without disturbing payments arrangements with its customer. The savings and loan
would merely tell the clearinghouse to reprogram its computers, so that the number identifying the savings and loan would be associated
with Bank B instead of with Bank A. Everything
would then go on as before.
Other solutions to this problem have been
advanced. Some have advocated the assignment
of a regular bank number, thus implying that
savings and loan associations, for clearing purposes, should be treated exactly as commercial
banks. Others have suggested that the home loan
banks be participants in the clearing process and
all debits and credits to accounts in savings and
loan associations should be routed through the
home loan banks.
The first of these suggestions would add to
Federal Reserve costs by increasing the number
of "end points" to which it would need to make
daily sorts and delivery. Looking ahead to the
precedent for future policy, if all thrift institutions, or even the large ones were included in
this system, thousands of new end points would
be added. (There are 4,300 savings and loan
associations, 390 mutual savings banks, and
23,000 credit unions in the Nation.)
Since present channels can be used to achieve
essentially the same result, it does not seem
desirable to treat the thrift institution exactly as
commercial banks are treated in this respect
unless they become more like banks in other
respects, or until the Congress considers the
basic questions involved in such a transition.
A similar line of thinking applies to incorporating a check-clearing function into the activities of the home loan banks. It may be that
Congress will find this to be desirable at some
point, but such an arrangement is not necessary,
in our opinion, to provide a thoroughly equitable
and equivalent treatment for savings and loans
in the receipt of payroll deposits. Thus, the
payable-through method involves minimal cost
to the Federal Reserve and imposes no unfair
burdens of cost or inconvenience elsewhere.
Considerations of equity, as well as of costs
to the Federal Reserve (and, indirectly, to the
Treasury), are involved in the question of
access. The Board has stated its general views,
as you know, Mr. Chairman, in a letter I addressed to you on March 21 in response to
questions you had raised about the operation of
the California Automated Clearing House. I
should like to ask to include that letter in the
record of this hearing.
877
STATEMENTS TO CONGRESS
The letter noted the Board's belief that the
public system using check or electronic transfer
of funds from one institution to another should
be such as to insure that the conditions of entry
into a general clearing arrangement are fair, and
that equitable treatment is assured for institutions with similar powers and responsibilities.
Let me just emphasize, in ending these remarks concerning the technique of access to
electronic funds transfer, some of the broader
questions invoked by that problem. All institutions should have access on terms that place no
unfair burdens on any. The very great benefits
that will result from electronic funds transfer
should be equitably related to the pattern in
which the costs of electronic transfer—both
private and public costs—are borne. The eventual system involving all financial institutions
wishing to participate in it should offer the
maximum convenience to its users, small and
large. And that system should be such as to
preserve competition in the types of service
offered, the convenience of the service, and the
cost of it, so that the incentive to innovation
is encouraged, and the benefits of innovation
are widely distributed.
THE RESPONSIBILITY FOR AN EFFICIENT
PAYMENTS SYSTEM
Senator Carter Glass commented, at the time
of the passage of the Federal Reserve Act:
. . . If the Board will have the wisdom and
courage to establish . . . a comprehensive
and economical plan of bank clearings, it will
be difficult to compute the advantages that this
section of the currency bill will secure . . .
(1951 Congressional
563).
Record,
Part 17, p.
The Board's efforts with regard to the development of an electronic transfer system have
been focused on general and equitable enjoyment of these benefits.
More than a decade ago, the Federal Reserve,
in collaboration with the Nation's banks, took
an important step toward stretching the viable
life of the check payments system by developing
the method of magnetic ink encoding on checks
with bank account and routing numbers, to
which magnetic ink encoding of the amount of
the check is added in the clearance process.
Making this standard usage for checks made the
machine processing of checks possible. That,
I might add, required a public education task
similar to that needed now to bring to the public
the benefits of electronic funds transfer.
More recently, guidelines for regional overnight check clearing arrangements were announced by the Board on February 3, 1972, as
an effort to squeeze as much efficiency as possible out of the check. This has now resulted in
a national network of regional clearance centers,
mostly located at Federal Reserve Banks or
branch banks, currently clearing more than half
the checks handled by the Federal Reserve on
an overnight basis.
The regional overnight clearance system was
established in furtherance of a policy statement
issued by the Board on June 18, 1971. This
called for "basic changes in the Nation's system
for handling money payments [that] are, essentially, transitional steps toward replacing the use
of checks with electronic transfer of funds."
This announcement, in turn, rested upon the
fact that since 1968 the Federal Reserve had
been engaged in building up a computerized
communications network, linking the Board and
all Federal Reserve Banks and branch banks.
This network has now been brought to a high
state of operational capacity, and can be extended to direct links with commercial banks.
THE BOARD'S REQUEST FOR COMMENT
ON THE DEVELOPMENT OF ELECTRONIC
TRANSFER
The development of electronic funds transfer
systems calls for an overhaul and extension of
the Federal Reserve's Regulation J, which presently governs only the collection of checks
through the Federal Reserve. The Board one
week ago published for comment such a revision
of Regulation J, and I am submitting a copy
of it for your records. The proposed revision
suggests a legal framework for electronic funds
transfer, both the passing of credit, and the
collection of payments.
But the Board, in proposing this regulatory
modernization, recognized that the development
of electronic funds transfer involves new relationships and roles for various institutions, public and private. The Board, therefore, went
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FEDERAL RESERVE BULLETIN • DECEMBER 1973
beyond the specifics of the rule changes it was
suggesting and asked for comment also on the
basic structure of the Nation's payments mechanism, and the appropriate roles in it of the
Federal Reserve and other institutions.
The range of questions on which the Board
requested comment in connection with Regulation J so as to accommodate electronic transfer
delineates, in broad form, the main public policy questions arising from this technological
development. I want, therefore, to cite the main
issues on which we seek advice.
The Board asked for comment on basic issues
including:
1. The appropriate roles in the ownership and
operation of an electronic payments system—
including adjuncts thereto—of (a) the Federal Reserve System, (b) other public bodies, and (c)
individual or groups of private institutions, including commercial banks, automated clearinghouses, credit card companies, thrift institutions, credit unions, the "bank w i r e , " and other
institutions or organizations such as those specified
in the attached proposal;
2. The extent and the conditions of access to
the electronic funds transfer system by various
kinds of depositor institutions, and of other financial institutions, as well as the terms of access;
3. How the cost of electronic funds transfer
should be allocated, including such questions as
whether the Federal Reserve should charge for the
use of its facilities; if so, against whom should
the charges be levied, whether they should cover
all costs, and whether reserves maintained by
member banks should be taken into account in any
fee schedule which might differentiate between
Federal Reserve member and nonmember institutions.
We expect to benefit substantially from the
response we receive with respect to these issues,
including—perhaps I should say particularly—the advice we receive from the Congress.
Policies or attitudes that inhibit participation
in the economies and added capacities that will
be provided by future electronic technological
development tie us to obsolete costs and inconvenience. By avoiding rigidities, the policies
and attitudes of both public and private parties
to electronic transfer will give ample opportunity and incentive for innovation to continue to
occur in electronic transfer facilities, and to be
put to timely use.
Technological change can alter institutional
relationships. Here also, avoidance of rigidities
in either public or private policy will permit us
to accommodate not only to technical change
but also to altered relationships among financial
institutions.
SOME CONCLUSIONS
Let me add only a few words of emphasis and
conclusion:
There are no technical barriers to the spread
of electronic funds transfer. It parallels all the
work done by the check system, and does it
better, more cheaply, faster, and at greater convenience to all users of the payments system.
The new payments system should aim at bringing into the payments mechanism the money
transfer needs of that substantial part of the
Nation's families not now using the check system.
The allocation of the costs of electronic funds
transfer among its vendors and its users—both
public and private—must be such that the economies realized from electronic transfer are
spread fairly.
There should be a public presence in electronic transfer, to the extent necessary to guarantee that the new payments system develops
in a way that makes it capable of doing the job
of money transfer, from whatever quarter,
without unwarranted exclusions of would-be
participants. A goal of the public presence
should be provision of a maximum range of
different services—including credit cards and
other payment ''concentrators"—compatible
with the degree of technological uniformity
necessary to ensure efficient operation.
The Board looks forward, in the discharge
of its segment of responsibility in this area, to
the advice and encouragement of the Congress.
STATEMENTS TO CONGRESS
Statement by Arthur F. Burns,
Chairman,
Board of Governors of the Federal Reserve
System, before the Subcommittee on International Finance of the Committee on Banking and
Currency, House of Representatives,
December
5, 1973.
I am pleased to appear before this committee
to discuss recent developments in foreign exchange markets and in the balance of payments.
This year has been characterized by alternating periods of turbulence and stability in
exchange markets. You will recall that, following several weeks of severe disturbance in exchange markets, the dollar was devalued for a
second time on February 12. At that time, Italy
and Japan chose to float their currencies, thus
joining the Canadian dollar, British pound, and
Swiss franc—which were already floating. New
pressures in exchange markets developed in late
February and early March and led to a further
extension of floating among major currencies.
Over the next 2 months, the average dollar
price of 10 major currencies (those of Japan,
Canada, and eight European nations) stabilized
at a level some 20 per cent above the exchange
parities prevailing in the spring of 1970. In
mid-May of this year, however, the dollar again
began to decline sharply, so that by July the
average dollar price of these 10 currencies increased an additional 10 per cent.
This further substantial depreciation of the
dollar did not seem consistent with international
price levels or with longer-term prospects for
our balance of trade or payments. Moreover,
fluctuations of exchange rates from day to day
and from hour to hour had become more pronounced. In these circumstances, and after full
consultation with the Treasury and representatives of other countries, the Federal Reserve began on July 10 to intervene in the
exchange market. Through the month of October, the System sold a total of $512 million
of European currencies, mainly German marks,
drawing on the swap lines to finance this intervention. By the end of that month, enough
marks, French francs, Belgian francs, and
Dutch guilders were purchased in the market
to repay in fuJJ these earlier swap drawings.
879
After our intervention in July and the release
of favorable U.S. trade and payments figures,
the dollar strengthened by about 3 per cent
during the first weeks of August. There was little
further change in the dollar's value until late
October, at which time the announcement of a
large trade surplus for September triggered another sharp advance. In recent weeks the dollar
has strengthened further in relation to the major
European currencies and the Japanese yen. The
appreciation of the dollar against the yen would
have been even greater if the Bank of Japan
had not intervened in the market by making
large sales of dollars. By the end of November,
the average dollar price of the 10 major currencies mentioned earlier had returned to the level
that ruled between mid-March and mid-May; in
other words, it was again some 20 per cent
above the exchange parities prevailing in the
spring of 1970—or slightly above the level in
the week following the February 12 devaluation.
Some market observers have pointed to anticipations of the impact of oil restrictions by
Arab countries as a factor contributing to these
developments in recent weeks. Others have
cited the stabilizing effects of official intervention by the Federal Reserve and other monetary
authorities. There is no doubt in my mind,
however, that the basic factor has been the
decisive turnaround in the U.S. balance of payments. New evidence of this fundamental improvement in our payments position has been
accumulating with each passing month.
Our exports have been rising at an extraordinary rate this year. Measured in current dollars, exports in the third quarter were 47 per
cent above their level in the third quarter of
1972. Much of this increase is accounted for
by rising prices. But even in real terms, exports
grew 23 per cent over this period. The big
increase in our agricultural exports—from an
annual rate of $9V2 billion in the third quarter
of 1972 to some $19 billion in the third quarter
of this year—has received a great deal of publicity. It is less often appreciated that nonagricultural exports, which account for about threefourths of our total exports, have been expanding at extraordinarily rapid rates as well.
Part of the strong showing of exports is at-
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FEDERAL RESERVE BULLETIN • DECEMBER 1973
tributable to last year's poor harvests abroad and
the current worldwide industrial boom. But the
improvement also reflects a lesser rate of inflation in the United States than in other industrial
countries and, far more important than this, the
cumulating effects of the depreciation of the
dollar since 1971.
The changes in our international competitiveness resulting from the depreciation of the
dollar are having an effect on our imports as
well as on our exports. In real terms, imports
actually declined between the first and third
quarters of this year, despite the strength of
domestic demands. The value of imports did
increase at an annual rate of 14 per cent during
that period, but only because of increases in
their dollar price.
As a result of these developments, the trade
balance has moved from a deficit of nearly $7
billion in 1972 to a surplus at an annual rate
of $3 billion in the third quarter of this year.
The trade balance continued to be in surplus
at a substantial rate in October. It therefore now
seems likely that the United States will have
a trade surplus, albeit of modest size, for 1973
as a whole.
The balance of international flows of longterm private capital has also moved in our favor
this year. Outflows of capital have moderated
since the first quarter and are estimated to have
slowed sharply in the third quarter. Prior to the
recent decline in stock market prices, renewed
confidence in the dollar helped to stimulate
foreign purchases of U.S. securities. Foreign
direct investment in this country has also been
substantial this year. These developments reflect, among other factors, the improved profitability of producing internationally traded goods
within the United States compared with production abroad.
The basic balance—that is, the aggregate of
all current international transactions and longterm capital flows—has been strengthening
throughout this year. The improvement in the
third quarter was dramatic enough to produce
a large surplus—the first quarterly surplus we
have experienced since 1969. Net flows of
short-term capital have also been favorable to
the United States since the first quarter. As a
result, the official settlements balance was actually in surplus during both the second and third
quarters. Preliminary data for October and November suggest that the surplus has continued
into the present quarter.
Short-term prospects for the balance of payments have become clouded, however, by recent developments in the oil situation. The price
of our oil imports has risen spectacularly, from
an average of $2.75 per barrel in the first quarter
of 1973 to over $5.00 currently. The boycott
by Arab producers has begun to reduce our
petroleum imports and, if continued, will reduce
our imports next year by some 3 million barrels
per day below the amount that had been expected to be available. Even so, in view of the
recent sharp price increases, our total payments
for oil imports in 1974 will probably exceed
by a substantial margin the $8 billion paid in
1973. Of course, if world trade in oil were to
resume a more normal pattern at these astronomic prices, the cost of our oil imports would
rise still more steeply. However, the net impact
on our over-all balance of payments will be
substantially less or could even be favorable,
since a good part of the increased payments for
oil by the United States and other countries
would find its way back to this country, directly
or indirectly, in the form of increased exports,
or capital inflows, or income receipts.
Whatever effects the oil shortage may have
on our balance of trade and payments, a more
immediate concern is the impact on domestic
production and employment. A reduction in
imports of crude oil and petroleum products by
3 million barrels per day amounts to a shortfall
of more than 15 per cent from estimated demands for this source of energy. Only a small
part of this shortfall could be made up during
1974 by increased domestic output of crude oil,
or by substitution of other fuels for petroleum
products. In the short run, there are only limited
possibilities for substituting other fuel for oil
in industrial plants, or for altering techniques
of production in ways that reduce dependence
upon petroleum products.
The President's program to conserve fuel
recognizes this basic fact and is therefore
oriented toward economizing end-product uses
STATEMENTS TO CONGRESS
—such as reduced consumption of gasoline in
passenger cars and reduced amounts of oil for
heating homes and commercial and industrial
buildings. To keep the oil shortage from generating major economic dislocations, our citizens will have to go to some trouble and put
up for a time with various inconveniences.
There is no practical alternative for the immediate future if seriously adverse effects on production and employment are to be avoided.
At best, a prolonged embargo on Arabian oil
shipments to the United States will result in
some economic dislocation next year. The demand for new cars, for tires and other auto parts,
for suburban housing, for recreational vehicles,
for restaurant meals, and for other travel-related
expenditures will be adversely affected; commercial airlines will reduce their purchases of
jet aircraft; and fewer motels and vacation
homes will be constructed. These developments
will be offset in part by larger activity in other
trades—ranging from coal to blankets and
sweaters, and from drilling machinery to bicycles and buses. Our inflationary problem,
meanwhile, will be aggravated by rising gas and
oil prices.
The situation in which we find ourselves is
obviously very difficult, but I believe it is manageable. The underlying strength and resilience
of our economy must never be underestimated.
Capital spending plans of business remain
strong, as do inventory demands for a host of
materials and components that have been in
short supply for many months. Our principal
asset—the resourcefulness of the American
people—remains entirely intact. As 1974 moves
on, I would expect the domestic output of crude
oil to gradually increase, electric utilities to shift
to greater use of coal, auto manufacturers to
concentrate more of their production on the
smaller cars demanded by consumers, and
thousands of other adjustments to be made by
ingenious businessmen across the land.
The longer-run economic implication of the
cutoff of Arabian oil supplies should not leave
us in any doubt. The United States can no longer
afford to lose time in working towards an independent ability to meet its energy requirements.
We must now move forward with determination
881
on many fronts—nuclear energy, solar energy,
coal conversion, exploration for oil. Recent
events should teach us that, even with a relaxation of the current boycott, we cannot remain
so heavily dependent on oil supplies from
foreign nations.
Some months will need to elapse before the
long-run implications of the oil problem for our
balance of payments are clarified. So far at least,
the restrictions on oil supply appear to have
strengthened the world's confidence in the dollar. But even before the Middle East conflict
erupted, the dollar was viewed with renewed
esteem. The dollar is again a strong currency,
and we can expect further support to our foreign
trade and payments from the lagged effects of
past exchange rate changes.
Continued strength in the balance of payments will require, however, a satisfactory domestic price performance relative to other
countries. A year or two ago our rate of inflation
was substantially lower than that of other industrial countries. Unfortunately, a large part
of this margin of competitive advantage has
eroded in recent months. In October the consumer price index was 0.8 per cent above September and 7.9 per cent above October 1972.
Clearly, the dangers of inflation remain very
much with us. At the same time, as I have
already noted, the oil shortage will cause shifts
in the structure of industry and will have adverse
effects on over-all production and employment.
Economic policy in the months ahead thus faces
the extremely difficult task of contributing to the
objective of regaining price stability, while at
the same time minimizing the risks of any
extensive weakening in economic activity.
In the remainder of my comments this morning, I would like to share with you my impression of the recent evolution of the world monetary system.
In the past several months a large number
of economic, political, and military events have
occurred that have had potentially disruptive
implications for exchange markets. Despite
these disturbing events, orderly market conditions and general stability have prevailed. The
official intervention that was undertaken has
given us helpful experience in managing a sys-
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FEDERAL RESERVE BULLETIN
tem with exchange rate flexibility in a way that
preserves orderly markets without frustrating
desirable adjustments. Although I remain skeptical of the long-run viability of a floating exchange rate regime, this experience supports the
continuance of the present exchange rate arrangements for the immediate future.
For the longer run, we must rely more heavily
on rules of international law in the monetary
area. Such a reform is the objective of the
Committee of Twenty, which has been meeting
periodically throughout 1973 and will continue
its work into 1974. Considerable progress in
clarifying issues has already been made, as
evidenced by the Nairobi report of the Chairman
of the Committee of Twenty and the associated
First Outline of Reform presented by the Chairman of the Committee's Deputies. I expect
further clarification and further convergence of
national views in coming months.
But it is important to avoid unrealistic expectations. Some of the reform issues are extremely
difficult, progress in reaching agreement will
continue to be gradual, and new developments
may cloud the situation—as the energy issue has
done in recent weeks.
Moreover, I have in recent months come to
think of international monetary reform as an
on-going, evolutionary process—not just as the
final outcome of formal negotiations. In view
of changing objective circumstances and continuing divergence in some official views, it is
hardly practical to think of monetary reform in
terms of a finished blueprint that is to be implemented in its entirety some morning after a final
meeting of the world's finance ministers and
central bank governors. Even while discussions
continue in the Committee of Twenty and other
forums, it is both possible and desirable to
adjust some parts of our international financial
machinery.
One such step in this evolutionary process has
been the recent termination of the March 1968
agreement with regard to official gold transactions. That agreement, which established the
so-called two-tier gold market, was born of the
1968 gold crisis. Developments in the private
gold market were then threatening to undermine
the international monetary system by draining
• DECEMBER 1973
it of gold—which at the time was the world's
principal reserve asset. To deal with this
difficulty, the central banks of Belgium, Germany, Italy, the Netherlands, Switzerland, the
United Kingdom, and the United States agreed
that they would no longer buy or sell gold in
the private market.
In view of the suspension of convertibility
of dollars into gold since August 1971, the 1968
agreement had become an anachronism. Its termination removes an obstacle to official sales
of gold in the private market and will thus
permit greater flexibility of action in the future.
Official sales of gold can be useful in preventing
wide fluctuations in the gold market that at times
generate instability in currency markets.
In due course, the United States and other
countries will make decisions about possible
sales in the gold market. In doing so, our
Government will comply fully with Article IV,
Section 2, of the Articles of Agreement of the
International Monetary Fund. Article IV states
in essence that no member of the IMF shall sell
gold below its official price nor shall buy gold
at a price above its official price. I am confident
that most, if not all, foreign governments will
also respect this Fund Article. Hence, while
they may sell gold, which now fetches a price
in the market that is far above the official price,
they will not buy gold either from the market
or from each other in the foreseeable future.
The termination of the 1968 agreement will
make possible a further reduction in the role
of gold in the international monetary system.
With the establishment of the Special Drawing
Rights' facility, which was not available in
1968, we now have an alternative primary reserve asset. It has therefore become practicable
to consider steps that may gradually move gold
out of official reserves.
Policy with regard to intervention in exchange
markets is another area in which progress is
beginning to be made in the evolution of the
international monetary system. Under present
exchange rate arrangements, authorities of
major countries are consulting and cooperating
as they make decisions on intervention. This
experience, and the experience to be gained in
coming months, will be of great value in the
STATEMENTS TO CONGRESS
effort to establish more formal exchange rate
arrangements for the longer-run future.
At the present time, with many currencies
floating in relation to the dollar, official holdings
of U.S. dollars will only be reduced through
market intervention by foreign central banks. A
substantial reduction of dollars presently held
in foreign official reserves—the reserve liabilities of the United States amount to some $70
billion—is clearly desirable as a long-run objective. Progress in this direction has been most
marked in the case of Japan, where dollar reserves have declined sharply in recent months.
At the end of November, Japanese official reserves were reported to be some $6 billion
below their level at the end of February. It
would be desirable for other countries with
excess reserves also to sell dollars gradually
when market forces are serving to appreciate
the dollar substantially against their currencies.
The controls imposed on capital flows may
be a third area of international monetary arrangements where evolutionary steps can be
taken. Starting with the measures adopted in
1963 and expanded in 1965, our Government
has administered a system of restraints on capital outflows in order to protect the balance of
payments and to avoid disturbance of international markets. These measures—the interest
equalization tax, the foreign direct investment
regulations, and the voluntary foreign credit
restraint guidelines—have been adapted over the
years to changing economic conditions, but it
has been the objective to remove them when
they were no longer necessary. Other countries
have similarly imposed new controls, or tightened existing controls, to deal with capital flows
considered to be temporary or reversible.
Early this year the administration announced
its intention to phase out our controls by the
end of 1974, but noted that the timing of liberalizing steps would depend on balance of payments developments. In view of the recent
883
strengthening of the balance of payments, it may
be feasible for the agencies administering the
controls—the Treasury Department, the Department of Commerce, and the Federal Reserve
System—to move forward over the coming
months with an orderly reduction of those restraints. Similarly, it may prove feasible for
other countries to relax some of their earlierimposed restraints on capital inflows.
In conclusion, I would like to note once again
that the strengthening of our balance of payments and the restoration of confidence in the
dollar in exchange markets stand out as this
year's major economic achievements. These
developments have served to bolster confidence
in our Nation's future at a time when we have
been besieged with all sorts of unhappy economic and political news.
In fact, these foreign exchange developments
have transformed the atmosphere in which international financial problems are being discussed. We no longer hear voices from abroad
about inflation being exported from the United
States. There is no longer so much complaining
about a world flooded with dollars. Even complaints about the "dollar overhang" have become muted.
We must, of course, be careful and not exaggerate the extent of the dollar's recovery. There
is much unfinished work ahead of us. Nonetheless, it is gratifying to be able to draw your
attention to the improvement that has occurred
in our balance of payments, and to advise you
that the dollar is today a respected currency in
financial circles both here and abroad.
Confidence in the dollar is essential both to
a healthy domestic economy and to a successful
evolution of the international monetary system.
Looking to the future, we must strive to conduct
all our economic policies—domestic as well as
international—in such a manner that they will
maintain, and indeed strengthen, that confidence.
•
884
Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON SEPTEMBER 18,1973
Domestic policy directive
The information reviewed at this meeting suggested that growth
in real output of goods and services, which had dropped to an
annual rate of about 2.5 per cent in the second quarter from rates
above 8.0 per cent in the two preceding quarters, would pick up
somewhat in the current quarter. Staff projections suggested that
growth in real output would slow slightly in the fourth quarter
and would slacken further in the first half of 1974; the rise in
prices was expected to remain rapid.
In August industrial production declined slightly as output of
automobiles and trucks was reduced sharply by shortages of parts,
hot weather, and work stoppages. Nonfarm payroll employment,
which had been stable in July, increased appreciably, although
employment in manufacturing continued to change little; over the
latest 3 months, the rate of growth in nonfarm employment was
about two-thirds of the rate over the preceding 9 months. In August
the unemployment rate edged up to 4.8 per cent. Retail sales,
according to the advance report, remained at the high level reached
in July, and the average for the 2 months was above that for the
second quarter.
Average hourly earnings of production workers on nonfarm
payrolls advanced moderately in August, but increases in June and
July were now reported to have been larger than had been indicated
by earlier data; as a result, the rise over the 3-month period was
more rapid than that earlier in the year. Wholesale prices of farm
and food products rose sharply between mid-July and mid-August,
after the temporary price freeze that had been imposed on June
13 was lifted for most foods on July 18. Later, prices of grains,
livestock, poultry, and other farm products dropped, but in general
prices of farm and food products remained far above pre-freeze
levels. Wholesale prices of industrial commodities increased ap-
preciably between mid-July and mid-August, although for these
commodities the freeze remained in force until August 12. Reflecting the freeze, the rise in the consumer price index had slowed
markedly in July.
Staff projections for the fourth quarter suggested that residential
construction outlays would decline substantially and that consumption expenditures would expand at a rate below that in the third
quarter. It was also expected, however, that both Federal and State
and local government purchases of goods and services would rise
substantially and that business inventory investment would increase
further.
U.S. merchandise exports continued to expand in July—reflecting sustained gains in exports of nonagricultural goods—and imports declined; the trade balance, after registering progressively
smaller deficits from the fourth quarter of 1972 to the second quarter
of 1973, shifted into surplus. Net foreign purchases of U.S. equity
securities, which had fallen sharply in the second quarter, rose
substantially in July.
Foreign exchange markets in general had been quiet in recent
weeks, although a 5 per cent revaluation of the Dutch guilder
announced on the weekend before this meeting provoked some
speculation that other continental currencies also would be revalued. The exchange rates for the dollar against major foreign
currencies—which had strengthened significantly in the first half
of August—had changed little since then. In August, moreover,
the U.S. balance of payments on an official settlements basis was
in surplus, after having been in small deficit in July.
At U.S. commercial banks, business loans expanded at a very
rapid rate in August—although the expansion appeared to have
slackened late in the month—-and growth in other types of loans
remained strong. Banks continued to liquidate substantial amounts
from their holdings of Government securities, but total bank credit
increased considerably further. The prime rate that banks charged
on loans to large corporations was raised in three steps from 9XA
per cent in mid-August to 10 per cent in mid-September.
The narrowly defined money stock (Mj), 1 which had grown at
an annual rate of about 10.5 per cent in the second quarter and
Private demand deposits plus currency in circulation.
885
886
FEDERAL RESERVE BULLETIN • DECEMBER 1973
of 5 per cent in July, 2 declined somewhat in August. Inflows of
time and savings deposits other than large-denomination C D ' s
increased sharply—reflecting in part inflows into 4-year time deposits in response to the higher interest rates generally being offered
on these instruments, which had been exempted from Regulation
Q ceilings at the beginning of July—and the more broadly defined
money stock (M 2 ) 3 grew at a slightly higher rate in August than
in July. Banks raised further the rates paid on large-denomination
C D ' s , and the outstanding volume of such C D ' s expanded by a
substantial amount in August, as in July; growth in the bank credit
proxy 4 was rapid. On September 7 the Federal Reserve announced
an increase from 8 to 11 per cent in marginal reserve requirements
on large-denomination C D ' s , effective in the statement week beginning October 4 against deposits held 2 weeks earlier.
Nonbank financial institutions, like commercial banks, raised
rates after the 4-year deposits were exempted from rate ceilings,
but they experienced net outflows of total deposits in the July-August period. In both July and August savings and loan associations
borrowed large amounts from Federal home loan banks to meet
mortgage commitments, and they sharply reduced their new commitments. Contract interest rates on conventional mortgages and
yields in the secondary market for Federally insured mortgages
rose sharply further in August.
In the Treasury's cash financing of August 24, which had been
announced on August 20, $2 billion of a 25-month, 8% per cent
note were auctioned at a price to yield 7.94 per cent. The Treasury
financed additional cash needs by selling special certificates of
indebtedness to the Federal Reserve Banks; such certificates were
outstanding on several days, and their volume reached a peak of
$443 million on September 11.
System open market operations since the meeting on August 21
had been guided by the Committee's decision to seek bank reserve
and money market conditions consistent with slower growth in
2
Growth rates cited are calculated on the basis of the daily-average level in
the last month of the period relative to that in the last month preceding the period.
3
M l plus commercial bank time and savings deposits other than large-denomination CD's.
4
Daily-average member bank deposits, adjusted to include funds from
nondeposit sources.
RECORD OF POLICY ACTIONS
monetary aggregates over the months immediately ahead than had
occurred on average in the first 7 months of the year. Operations
had been directed toward fostering growth in reserves available
to support private nonbank deposits (RPD's) at an annual rate in
a range of 11 to 13 per cent during the August-September period,
while avoiding unduly sharp changes in money market conditions.
Soon after the August meeting, available data suggested that
in the August-September period R P D ' s would grow at a rate above
the range that the Committee had specified and that the monetary
aggregates would grow at rates in excess of an acceptable range.
Therefore, the System had acted promptly to limit expansion in
R P D ' s , and the Federal funds rate—which had been around \0V2
per cent at the time of the August meeting—rose to about 10%
per cent in the statement week ending August 29. Later data
suggested that growth in the monetary aggregates was slowing and
that R P D ' s would grow in the August-September period at a rate
within the specified range. The Federal funds rate remained about
103A per cent. In the 4 weeks ending September 12, member bank
borrowings averaged $2,135 million, compared with $1,965 million
in the preceding 5 weeks.
Short-term market interest rates, especially rates for Treasury
bills, declined just after the August meeting of the Committee,
in large part because of growing expectations among market participants that the maximum degree of monetary restraint had been
reached. However, rates rose again in association with the further
tightening of money market conditions early in the inter-meeting
period and with the September 7 announcement of the increase
in reserve requirements against large-denomination C D ' s . The
market rate on 3-month Treasury bills dropped from 8.79 per cent
on the day before the August meeting to 8.46 per cent a few days
afterwards, rose to a high of 9.04 per cent on September 11, and
then fell back to 8.70 per cent on the day before this meeting.
Yields on long-term securities, which had turned down in early
August, continued to decline through most of the inter-meeting
period—in part, like short-term rates, because of market expectations that the maximum degree of monetary restraint had been
reached, but also because of light offerings of new securities. The
volume of new public offerings of corporate bonds declined more
than seasonally in August, and the recovery in the volume in
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FEDERAL RESERVE BULLETIN • DECEMBER 1973
prospect for September was less than seasonal. In the week before
this meeting, long-term rates edged up.
The Committee agreed that the economic situation and prospects
called for moderate growth in monetary aggregates over the months
ahead. A staff analysis indicated that, although transactions demands for money probably would expand, growth in the money
stock in the months ahead was likely to be limited in lagged
response to the rise in short-term interest rates that had occurred
in recent months. Consequently, achievement of moderate growth
in monetary aggregates within an acceptable period of time was
likely to require some easing in money market conditions. In the
current environment of unusual sensitivity of expectations in financial markets, however, signs that monetary policy was moving
toward a significant easing in money market conditions might result
in large expectational declines in short-term interest rates and also
in further declines in long-term rates, tending to erode the existing
degree of monetary restraint.
The staff analysis also indicated that completion of the realignment in consumers' holdings of financial assets—which had been
taking place in response to changes in the structure of interest
rates—was likely to slow the growth in consumer-type time and
savings deposits even if market interest rates declined moderately.
It was expected that growth in business loans, although slowing
from the exceptionally rapid pace in August, would remain relatively rapid and that banks' demands for funds would continue
strong; however, expansion in the oustanding volume of large-denomination C D ' s was likely to be tempered by the recent increase
in the marginal reserve requirement against such CD's. In large
part because of the reserves required against the expanding volume
of large-denomination C D ' s , rapid growth in R P D ' s in the September-October period—at an annual rate in a range of 15 to 17
per cent—was thought likely to be consistent with moderate growth
in the narrowly and the more broadly defined money stock over
the months ahead.
In view of the relatively weak behavior of the monetary aggregates in August and prospects for limited expansion in the months
immediately ahead, the Committee concluded that reserve-supplying operations should not become restrictive unless R P D ' s in the
September-October period appeared to be growing at an annual
RECORD OF POLICY ACTIONS
rate of more than 18 per cent. Specifically, the Committee decided
that operations should be directed at fostering R P D growth during
that period within a range of 15 to 18 per cent, while taking account
of deviations in monetary growth f r o m an acceptable range and
avoiding unduly sharp changes in money market conditions. Although the members recognized that pursuit of the objective for
R P D ' s might be associated with some easing in money market
conditions, a number of them cautioned against the risk of generating market impressions that monetary restraint was being relaxed
significantly, and it was agreed that, in the conduct of operations,
account should be taken of domestic financial market developments.
As at other recent meetings, the Committee also agreed that account
should be taken of international financial market developments. It
was understood that the Chairman might call upon the Committee
to consider the need for supplementary instructions before the next
scheduled meeting if significant inconsistencies appeared to be
developing among the Committee's various objectives and constraints.
The following domestic policy directive was issued to the Federal
Reserve Bank of N e w York:
The information reviewed at this meeting suggests that growth
in real output of goods and services, which slowed in the second
quarter from the exceptionally rapid pace of the two preceding
quarters, will be moderate in the third quarter. Although nonfarm
employment rose sharply in August, the average gain in recent
months has been smaller than earlier and the unemployment rate
has changed little at a level somewhat below 5 per cent. The
exceptionally rapid advance in prices was interrupted in July by
the temporary freeze imposed in mid-June. However, farm and food
prices surged after mid-July—when the freeze was lifted on most
such products—and despite later appreciable declines, they remained
far above pre-freeze levels. The U.S. merchandise trade balance
improved further in July, and net foreign purchases of U.S. stocks
increased. In recent weeks exchange rates for the dollar against
most foreign currencies have changed little on balance after
strengthening in the first half of August, and the balance of payments
has been in surplus on an official settlements basis.
The narrowly defined money stock, which had increased moderately in July, declined somewhat in August. The more broadly
defined money stock continued to expand as a result of net inflows
889
890
FEDERAL RESERVE BULLETIN • DECEMBER 1973
at banks of consumer-type time deposits. Nonbank thrift institutions
experienced net deposit outflows in the July-August period. Expansion in bank credit has continued at a substantial pace. On September
7 the Federal Reserve announced an increase from 8 to 11 per cent
in marginal reserve requirements on large-denomination CD's. Interest rates on long-term market securities declined from early
August to early September, partly because of growing expectations
that the maximum degree of monetary restraint had been reached.
Later, however, such expectations weakened and some long-term
rates turned up. Short-term rates generally remained under upward
pressure in recent weeks.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions conducive to abatement of inflationary pressures, a sustainable rate of
advance in economic activity, and continued progress toward equilibrium in the country's balance of payments.
To implement this policy, while taking account of international
and domestic financial market developments, the Committee seeks
to achieve bank reserve and money market conditions consistent
with moderate growth in monetary aggregates over the months
ahead.
Votes for this action: Messrs. Burns, Balles,
Bucher, Daane, Francis, Holland, Mayo, Mitchell,
Morris, Sheehan, and Debs. Votes against this
action: None.
Absent and not voting: Messrs. Brimmer and
Hayes. (Mr. Debs voted as alternate for Mr. Hayes.)
On October 1 the System Account Manager reported that significant inconsistencies had developed among the Committee's various
objectives and constraints. Incoming data had suggested that in
the September-October period the annual rate of growth in R P D ' s
would fall well below the range specified by the Committee at
the September 18 meeting and that growth in both Mx and M 2
would fall short of acceptable ranges. In domestic financial markets,
however, short-term interest rates had dropped very sharply—although the Federal funds rate had remained close to 10% per
cent—and long-term rates had continued to decline as many market
participants had become convinced that the System had relaxed
its policy of restraint and that in general interest rate peaks had
been passed.
RECORD OF POLICY ACTIONS
The Committee held a telephone meeting on October 2, in which
all members other than Chairman Burns participated. A minority
of the members—Messrs. Balles, Bucher, Francis, Morris, and
Sheehan—favored proceeding to provide reserves at a rate consistent with an easing in money market conditions to the degree
considered acceptable at the meeting on September 18, provided
that market conditions did not become disorderly and that growth
in the aggregates appeared to remain below acceptable ranges. The
majority of the members, however, concluded that at least over
the next few days money market conditions should be allowed to
ease less than originally considered acceptable and then only if
that did not threaten to reinvigorate the sharp rally in markets for
short-term securities. It was understood that further consultation
was likely to be desirable before the meeting scheduled for October
16.
The Committee held another telephone meeting on October 10,
in which all members participated. The additional week's data
available by then suggested that in the September-October period
growth in R P D ' s and the monetary aggregates would be still weaker
than had been expected earlier. Although System operations had
supplied large amounts of reserves and short-term market interest
rates had declined further on balance, the Federal funds rate on
most days through October 8 had remained near 103A per cent.
Committee members agreed unanimously that reserves should be
supplied at a rate consistent with some easing in money market
conditions beyond that decided upon on October 2 and that conditions should be eased somewhat further if the recent weakness in
R P D ' s and in the monetary aggregates should be confirmed by
data that would become available after the meeting.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board's Annual Report,
are released about 90 days after the meeting and are subsequently published in
the
BULLETIN.
891
Law Department
Statutes, regulations, interpretations, a n d decisions
RESERVES OF MEMBER
BANKS
The Board of Governors has amended Regulation D to change the definition of "gross demand
deposits" to include certain "other liability" accounts.
AMENDMENT TO REGULATION D
Effective November 26, 1973 § 204.1(g) of
Regulation D is amended to read as follows:
rency or bearer-type negotiable instruments) as are
exchanged among banks and banking institutions;
(iii) for audit and accounting media of a banking
or financial nature and other business records and
documents used in processing such media. 33
INTERPRETATION OF REGULATION Y
SECTION 225.4—NONBANKING
ACTIVITIES
(a) Activities closely related to banking or
managing or controlling banks. * * * The following activities have been determined by the
Board to be so closely related to banking or
managing or controlling banks as to be a proper
incident thereto:
SECTION 225.129 ACTIVITIES CLOSELY RELATED TO BANKING
Courier activities. The Board's amendment of
§ 225.4(a), which adds courier services to the list
of closely related activities is intended to permit
holding companies to transport time critical materials of limited intrinsic value of the types utilized
by banks and bank-related firms in performing
their business activities. Such transportation activities are of particular importance in the check
clearing process of the banking system, but are
also important to the performance of other activities, including the processing of financially-related
economic data. The authority is not intended to
permit holding companies to engage generally in
the provision of transportation services. However,
the furnishing of courier services for nonfinancially-related material upon the specific, unsolicited request of a third party when courier services
are not otherwise reasonably available may be
regarded as an incidental activity of a bank-related
courier.
During the course of the Board's proceedings
pertaining to courier services, objections were
made that courier activities were not a proper
incident to banking because of the possibility that
holding companies would or had engaged in unfair
competitive practices. The Board believes that
adherence to the following principles will eliminate or reduce to an insignificant degree any possibility of unfair competition:
a. A holding company courier subsidiary estab-
(11) providing courier services (i) for the internal
operations of the holding company and its subsidiaries; (ii) for checks, commercial papers, documents, and written instruments (excluding cur-
3a
Applications to engage de novo in providing courier
services should be filed in accordance with the procedures of
§ 225.4(b)(2) rather than § 225.4(b)(1). See also the Board's
interpretation on courier activities (12 CFR 2 2 5 . 1 2 9 ) , which
sets forth conditions for holding company entry pursuant to
§ 4(c)(8).
SECTION 204.1—DEFINITIONS
(g) Gross demand deposits. * * * "Gross
demand deposits" also includes any obligation to
pay a check (or other instrument, device, or arrangement for the transfer of funds) drawn on the
bank, where the account of the bank's customer
has already been debited.
BANK HOLDING COMPANIES
The Board of Governors has determined to add
certain courier activities to the list of permissible
activities for bank holding companies.
A M E N D M E N T T O R E G U L A T I O N Y,
INTERPRETATION, AND STATEMENT
Effective November 15, 1973 section 225.4(a)
is amended to read as follows:
892
LAW DEPARTMENT
lished under § 4(c)(8) should be a separate, independent corporate entity, not merely a servicing
arm of a bank.
b. As such, the subsidiary should exist as a
separate, profit-oriented operation and should not
be subsidized by the holding company system.
c. Services performed should be explicitly
priced, and shall not be paid for indirectly, for
example, on the basis of deposits maintained at
or loan arrangements with affiliated banks.
Accordingly, entry of holding companies into
courier activities on the basis of § 4(c)(8) will be
conditioned as follows:
1. The courier subsidiary shall perform services
on an explicit fee basis and shall be structured
as an individual profit center designed to be
operated on a profitable basis. The Board may
regard operating losses sustained over an extended
period as being inconsistent with continued authority to engage in courier activities.
2. Courier services performed on behalf of an
affiliate's customer (such as the carriage of incoming cash letters) shall be paid for by the
customer. Such payments shall not be made indirectly, for example, on the basis of imputed earnings on deposits maintained at or of loan arrangements with subsidiaries of the holding company.
Concern has also been expressed that bank-affiliated courier services will be utilized to gain a
competitive advantage over firms competing with
other holding company affiliates. To reduce the
possibility that courier affiliates might be so employed, the Board will impose the following third
condition:
3. The courier subsidiary shall, when requested
by any bank or any data processing firm providing
financially-related data processing services which
firm compete^ with a banking or data processing
subsidiary of Applicant, furnish comparable service at comparable rates, unless compliance with
such request would be beyond the courier subsidiary's practical capacity. In this regard, the courier
subsidiary should make known to the public its
minimum rate schedule for services and its general
pricing policies thereto. The courier subsidiary is
also expected to maintain for a reasonable period
of time (not less than two years) each request
denied with the reasons for such denial.
STATEMENT
I. Procedural Background.
By notice published November 17, 1971 (36
F.R. 21897), the Board announced proposed rulemaking under § 4(c)(8) of the Bank Holding
893
Company Act to permit holding companies to
engage in "performing or carrying on armored car
or courier services." A hearing was scheduled to
be held before available members of the Board
on December 10, 1971. A motion for an extension
of time and for the institution of formal rulemaking
procedures was filed by the National Courier Association and the National Armored Car Association. The Board granted the motion in part by
delaying the hearing date to January 19, 1972, but
denied the request for formal rulemaking procedures conducted in accordance with §§ 556 and
557 of Title 5 of the United States Code (37 F.R.
938). Subsequently, the Board further postponed
the hearing until February 10, 1972, and designated a hearing officer to conduct the proceedings
(37 F.R. 1251). The Board stated that although
the hearing would not be conducted pursuant to
§§ 556 and 557 of Title 5, a more formal proceeding than originally proposed would be conducted. At the same time, the Board granted a
request for separate consideration of armored car
and courier services, denied requests for reconsideration of the request for formal proceedings
under §§ 556 and 557 of Title 5, and denied a
request for access to intra-agency memoranda
considered by the Board in deciding to announce
its proposed rulemaking regarding armored car and
courier services. The designated Hearing Officer
held a prehearing conference on February 4, 1972
and postponed the scheduled hearings until February 29. On February 29 and March 1, 1972, a
hearing was conducted with regard to courier
services. Written statements were submitted on the
armored car activity, but no separate oral presentations were made with regard to that activity. 1
The Hearing Officer filed his Recommended Decision, and comments and exceptions thereto were
filed by the parties. The Board requested certain
additional material to supplement the record and
all parties were apprised of the request and the
replies thereto.
Among the exceptions filed were objections that
the proceedings were not conducted in accordance
with §§ 556 and 557 of Title 5, that the Hearing
Officer failed to permit cross-examination by parties, and that he erred in relying upon material
in the Board's public information file, almost all
of which had been submitted by the public in
response to the Board's November notice of
proposed rulemaking. The Board has previously
determined that its rulemaking procedures under
1
One oral presentation made during the courier hearing pertained primarily to armored car services.
894
FEDERAL RESERVE BULLETIN • DECEMBER 1973
section 4(c)(8) are legislative rather than adversary
in nature and are not subject to the procedures
of §§ 556 and 557 of Title 5. The Board has
concluded that the written interrogatories permitted by the Hearing Officer in the interest of a more
complete record and the Hearing Officer's reliance
upon the Board's public file relating to the proceedings was appropriate to the rulemaking nature
of the hearing and consistent with the Board's
Order granting his authority. Many of the controverted issues between the participants in these
proceedings, for example, the private pricing policies of an individual courier affiliate, may be
more appropriately explored at the time individual
bank holding companies apply to engage in courier
activities.
Three of the participants in the courier proceedings have requested oral argument before the
Board. The Board has denied those requests in
the accompanying Order because it concluded that
oral argument would be unlikely to provide information not presently in the record. Purolator
Courier Corporation has also made a motion to
include in the record correspondence between itself and the Board related to permitting existing
courier subsidiaries of bank holding companies to
bid for and to be awarded contracts to provide
courier services for the Regional Check Processing
Centers of the Federal Reserve Bank of Richmond.
An objection to the holding companies bidding for
the courier services contracts and a request to
reopen the record were also filed by the Independent Bankers Association of America. The
Board has denied these motions to incorporate
additional material into the record because in its
judgment such material is not relevant to the issue
of whether courier services are so closely related
to banking or managing or controlling banks as
to be a proper incident thereto.
II. Courier Services.
A. Relationship to Banking.
When the Board announced its proposal to include courier activities as a permissible activity
for bank holding companies, the Board stated it
understood that courier services involve
. . . the transportation of important items having critical
time schedules. The items involved are generally not bearer
type instruments, and accordingly, require only the ordinary
security measures accorded any confidential business papers.
Among the most common documents and related items
carried by messenger service are checks, drafts, money
orders, travelers checks, commercial papers, written instruments and data processing material.
The record indicates that courier services involve transportation of any item with a critical time
schedule, provided such items are small in bulk,
light in weight, and require only ordinary security
measures. Thus, in addition to the items listed
above, such items as human blood, exposed and
processed film, repair parts, and cut flowers are
moved by courier.
Commercial courier services as they are presently conducted began as a means of expediting
the movement of checks, and accordingly such
services were utilized primarily by banks and the
banking community. Prior to the development of
commercial courier services, checks had been
moved by mail, bus, rail, and private carriage
(including messengers). Although in recent years
the percentage of revenues derived from courier
services performed for the banking community
appears to have declined, the banking community
remains the primary source of courier revenues.
It appears to be undisputed that courier services
for cash letters 2 play a vital role in the check
clearing process. Similarly, it appears undisputed
that courier services are important to bank-related
data processing or to data processing generally.
The record indicates that a number of banks,
particularly those which operate a significant
number of branches, engage in the transportation
of such items as checks, internal memoranda and
data processing material between branches, and
that three bank holding companies, all of which
became subject to the Bank Holding Company Act
as a result of the 1970 Amendments, are engaged
in providing " f o r h i r e " courier service.
Opponents of holding company entry contend
that courier services are essentially transportation
services that require technology and expertise
having little in common with traditional banking
activities and should not be regarded as closely
related to banking or managing or controlling
banks on the basis that banks are the primary user
of such services. Those supporting entry argue that
courier services are closely related to banking and
managing and controlling banks in the sense of
being an increasingly integral part of modern day
banking with its emphasis on high speed computers and the importance of swift bank clearances. They also rely upon decisions of the Interstate Commerce Commission which recognize the
transportation of cash letters as a distinct type of
contract carriage treating all banks as one shipper.
2
The term "cash letters" commonly refers to a closed
envelope, package or pouch sent by one bank to another bank
or clearing center containing checks, drafts, and money orders
which have been cashed or deposited in a bank by its customers
and which are being forwarded to another bank or clearing
center for processing. The checks, drafts, and money orders
are restrictively endorsed and are tabulated on an enclosed
document.
LAW DEPARTMENT
The Hearing Officer finds that courier service is
an essential part of the present process by which
banks effect check collections and also is essential
to the performance of data processing activities
by banks or nonbanks for banks and is thus closely
related to banking. His recommendation would
also permit the carriage of financially-related data
processing materials, such as audit media utilized
in the preparation of payrolls, for nonbank customers. Transportation of the type afforded by a
courier service frequently is necessary to the efficient and timely processing of such audit media.
Among the exceptions filed are those objecting
to the Hearing Officer's determination insofar as
any for hire courier activities are found to be
closely related to banking and those which characterize the Hearing Officer's proposed definition
of permissible courier services as ambiguous.
The Board finds that the transportation of cash
letters has been so integrated into the process by
which checks are collected as to be part of the
present payments mechanism. The transportation
of data processing materials (such as materials
utilized in demand deposit accounting) between
banks appears to be in connection with the provision of correspondent bank services and may be
in conjunction with the processing of cash letters.
The transportation of financially-related data processing materials is related to, and supports the
provision of, data processing services of types
furnished by banks and bank-related companies.
Accordingly, the Board has concluded that courier
services of the type described above are closely
related to banking or controlling or managing
banks. The Board has revised the Hearing Officer's proposed definition of permissible courier
services for greater clarity.
B. Public Benefits Considerations.
The Courier Industry. The courier industry
provides the portal-to-portal transportation of important items with critical time schedules. The
time periods involved are of relatively short duration—usually less than 12 hours. There appear to
be only a limited number of courier firms having
substantial operations in terms of revenues and
geographic areas served, although many smaller
courier companies operate on a local basis. The
record suggests concentration in the courier industry is high, and the size distribution within the
industry highly skewed with the pioneer firm being
by far the largest firm. The relevant geographic
market for evaluating the competitive effects of
a given holding company entry would appear to
be local or regional in nature.
The economic unit of the courier industry is the
route consisting of a cluster of customers served
895
by the same vehicle. Each route is limited with
respect to the number and location of customers
that can be served as determined by mileage and
time factors, traffic density, road conditions and
the proximity of customers to one another. The
record indicates there are many routes presently
served by only one courier firm.
The provision of for hire courier services may
be regulated by individual states with respect to
intrastate transportation 3 and by the Interstate
Commerce Commission with respect to interstate
transportation. Some states do not regulate courier
services, and there are numerous exceptions to the
Interstate Commerce Act (particularly with regard
to carriage within metropolitan areas) which exempt courier companies from any requirement of
approval for entry.
Contentions of the Parties. The main thrust
of the arguments of those favoring holding company entry is that due to the lack of competition in
many areas of the country, the courier industry
has not satisfactorily met all of the transportation
needs of the banking community. Accordingly,
holding company entry will increase competition
within the courier industry and lead to greater
convenience and increased efficiencies for those
utilizing courier services. Opponents of the
proposed regulation assert that the courier industry
is presently highly competitive and holding company entry is motivated by the desire to utilize
courier services as a means of furthering the business goals of their banking subsidiaries. Accordingly, holding company entry will lead to decreased and unfair competition as well as creating
a possibility of other adverse effects. They further
argue that holding company entry will violate State
bank branching laws and the prohibition of the
payment of interest on demand deposits.
The Hearing Officer's Views. The Hearing
Officer concluded that the record would not support a determination that all holding company
entries into the courier business would be in the
public interest. However, implicit in his recommendation is a finding that holding company entry
is likely to be in the public interest in a sufficient
number of instances to justify a conclusion that
courier services, as he defines and conditions
them, are so closely related to banking as to be
a proper incident thereto. He further finds that
neither Regulation Q nor the prohibitions in many
States of branch banking constitute a real impedi-
3
The Hearing Officer suggested that, for purposes of the
applicable transportation statutes, carriage of cash letters involved interstate commerce in all instances, but it appears that
such carriage may often involve only intrastate commerce.
FEDERAL RESERVE BULLETIN • DECEMBER 1973
896
ment to holding companies engaging in courier
services.
The conditions he recommends essentially require: (1) a bank holding company and its courier
affiliate shall not represent courier services as free
and shall make available to prospective users the
schedule of minimum rates and charges for the
service and policies and practices in relation
thereto; and (2) a courier subsidiary shall, when
requested by any bank competing with a subsidiary
bank of the holding company, furnish comparable
service at comparable rates to such competing
bank, unless compliance with such request is
beyond its practical capacity.
Comments and Exceptions to the Recommended Decision. Among the comments and exceptions filed were objections to the lack of a
specific conclusion that courier services are a
proper incident to banking, objections as to effectiveness of the proposed conditions, and objections
on the basis that the Hearing Officer understated
the structural dangers and overestimated the ability
of regulatory agencies to focus upon and curtail
unfair competitive practices. Exceptions were also
filed with regard to the Hearing Officer's conclusion that neither Regulation Q nor State branch
banking statutes posed an impediment to holding
company entry.
DISCUSSION. The Board has considered the relevant aspects of the courier proposal, including
the arguments of the parties, the Recommended
c. Services performed should be explicitly
priced and should not be paid for on the basis
of correspondent bank balances or other demand
deposits maintained at affiliated banks.
Accordingly, entry of holding companies into
courier activities on the basis of § 4(c)(8) will be
conditioned as follows:
1. The courier subsidiary shall perform services
on an explicit fee basis and shall be structured
as an individual profit center designed to be
operated on a profitable basis. The Board may
regard operating losses sustained over an extended
period as being inconsistent with continued authority to engage in courier activities.
2. Courier services performed on behalf of an
affiliate's customer (such as carriage of incoming
cash letters) shall be paid for by the customer.
Such payments shall not be made indirectly, for
example on the basis of imputed earnings of deposits maintained at or loan arrangements with
subsidiaries of the holding company.
The Hearing Officer's proposed condition requiring the provision of comparable courier services to competing banks was designed to assure
that courier services would not be used as a competitive tool in gaining correspondent bank deposits. The Board will extend this condition to apply
to any data processing firm engaged in providing
financially-related data processing which firm
competes with a banking or data processing subsidiary of an applicant. Thus, the Board intends to
comments
impose the following third condition upon holding
thereto. With respect to the allegations of unfair
competition, the Board has concluded that adherence to the following principles would eliminate
or reduce to an insignificant degree any possibility
of unfair competitive practices vis a vis other
courier firms, while at the same time permitting
the possibility of holding company entry adding
to the competitive pressures within the courier
industry. Such pressures may also result in greater
convenience for purchasers of courier services and
are likely, in certain instances, to result in increased efficiencies in the processing of cash letters. The principles also assure the ability of a
purchaser of courier services from a holding company affiliate to ascertain precisely the costs of
such services. The principles are:
a. A holding company courier subsidiary established under § 4(c)(8) should be a separate, independent corporate entity, not merely a servicing
arm of a bank.
b. As such, the subsidiary should exist as a
separate, profit oriented operation and should not
be subsidized by the holding company system.
company entry:
3. The courier subsidiary shall, when requested
by any bank or any data processing firm providing
financially-related data processing services which
firm competes with a banking or data processing
subsidiary of Applicant, furnish comparable services at comparable rates, unless compliance with
such request would be beyond the courier subsidiary's practical capacity. In this regard, the courier
subsidiary should make known to the public its
minimum rate schedule for services and its general
pricing policies thereto. The courier subsidiary is
also expected to maintain for a reasonable period
of time each request denied with the reasons for
such denial.
The Board has considered other possible adverse
effects of permitting holding company entry, such
as undue concentration of resources, conflicts of
interest, or unsound banking practices and has
concluded that the possibility of these adverse
effects generally being significant is remote. The
question of whether holding company entry would
violate State bank branching laws and constitute
Decision
and
the
exceptions
and
LAW DEPARTMENT
an unsound banking practice or unfair competition
is separately discussed below as are issues pertaining to Regulation Q.
State Branching Laws. The Board has concluded that the operation of a courier service under
the conditions set forth above would not constitute
branch banking. The courier subsidiary would be
a separate corporation, rather than an additional
place of business of the bank. The Board sees no
reason to attribute the activities of a courier subsidiary operated in accordance with the Board's
conditions to an affiliated bank or banks. Accordingly, the Board does not regard State branching
laws as an impediment to the amendment of Regulation Y to permit holding companies to engage
in courier services. Furthermore, the Board has
considerable doubt that the branch banking laws
are applicable to interbank transactions involving
cash letters, which have long been regarded in
terms of correspondent banking rather than branch
banking. The Board does nor regard either First
National Bank v. Dickinson, 396 U.S. 122 (1969),
or Jackson v. First National Bank of Cornelia,
292 F. Supp. 156 (1968); affm'd. 430 F. 2d 1200
(5th Cir., 1970); cert. den. 401 U.S. 947 (1971),
as controlling with regard to permitting holding
companies to engage in courier services.
Regulation Q. Another issue, raised in these
proceedings, is whether the payment by a bank
to a courier firm of the charges for transporting
incoming cash letters of correspondent banks constitutes the payment of interest to the correspondent banks on demand deposits held at the
bank. 4 Since the payment of interest issue is
present regardless of whether or not the courier
firm is a holding company affiliate, the interest
issue is only collaterally related to the proposed
determination that courier services are closely related to banking. Nevertheless, as the interest issue
has been raised in the context of this proceeding,
the Board's views concerning the issue are presented below.
Any determination concerning whether or not
a prohibited payment of interest has been made
must be based on the specific factual circumstances
involved. Two specific factual situations are presented in the record of this proceeding. In one
4
Section 19 of the Federal Reserve Act prohibits member
banks from paying interest on demand deposits (12 U . S . C .
371(a)), but authorizes the Board to determine what shall be
deemed a payment of interest (12 U . S . C . 461). In Regulation
Q, the Board has stated that any payment to or for the account
of any depositor, as compensation for the use of funds constituting a deposit, shall be considered interest (12 CFR
217.2(b)).
897
situation, a bank (Bank A) gives its correspondent
banks the option of the correspondent bank making
direct payments for courier services to the firm
rendering such services, or to having payments
made by Bank A to the courier firm on the basis
of traditional account analysis. Such payments,
when made by Bank A, are paid to a separate
courier corporation and are more than nominal in
amount. While such payments are not made directly to the deposit account of the correspondent
bank, the payments are identifiably made on behalf
of the correspondent bank on the basis of deposits
maintained at Bank A. Based on these facts and
other facts of record, the Board has concluded that
such payments by Bank A to the courier on the
basis of traditional account analysis may be viewed
as an indirect payment of interest to the account
of a depositor as compensation for the use of
funds. A second factual situation presented involves a bank paying the courier expense for
incoming cash letters of other banks and treating
the payments as part of its overhead expenses.
Payments for courier services are in some cases
made for banks not maintaining correspondent
balances. In this factual situation, the Board has
concluded that no payment of interest is involved.
De Novo Procedures. Because of the limited
number of firms providing courier services in many
markets, the Board itself desires to fully consider
the public benefits aspects of each application to
engage in courier services. Accordingly, the Board
has determined that the de novo procedures of §
225.4(b) (1) should not be utilized by an applicant's seeking to engage in courier services and
that an application must be filed under the provisions of § 225.4(b)(2) of Regulation Y.
Conclusion. The Board has considered whether
or not performance by a holding company affiliate
can reasonably be expected to produce public
benefits, such as greater convenience, increased
competition, or gains in efficiency that outweigh
potential adverse effects such as undue concentration of resources, decreased or unfair competition,
conflicts of interests, or unsound banking practices. For the reasons stated above, the Board has
concluded that the balance of public interest factors it is required to weigh is likely to be favorable
in a sufficient number of instances to justify adding
certain courier services to the list of activities the
Board has determined to be closely related to
banking. Accordingly, the Board has concluded
that certain courier services as enumerated in §
225.4(a)(ll) are so closely related to banking or
managing or controlling banks as to be a proper
incident thereto.
FEDERAL RESERVE BULLETIN • DECEMBER 1973
898
III. Armored Car Services.
The Board has examined the record of the
proposed amendment to Regulation Y with respect
to adding armored car services to the list of activities the Board has found to be closely related to
banking and has found the evidence of record to
be inconclusive. The Board notes that the record
is virtually devoid of evidence in support of the
proposed amendment. Therefore, if at some future
time a holding company applies pursuant to §
4(c)(8) to engage in armored car services, such
holding company shall, in meeting its burden of
demonstrating that its proposed activities are so
closely related to banking as to be a proper incident
thereto, specifically address the evidence of record
submitted in this proceeding. Such evidence will
be available at the Board and at each of the Federal
Reserve Banks.
BANK HOLDING COMPANY AND BANK MERGER ORDERS
ISSUED BY THE BOARD OF GOVERNORS
ORDERS UNDER SECTION 3 OF
BANK HOLDING COMPANY ACT
THE CONNECTICUT B ANCFEDERATION,
INC., NEW BRITAIN, CONNECTICUT
ORDER APPROVING FORMATION OF B A N K
HOLD-
ING COMPANY
The Connecticut BancFederation, Inc., New
Britain, Connecticut, has applied for the Board's
approval under § 3(a)(1) of the Bank Holding
Company Act (12 U.S.C. 1842(a)(1)) of formation
of a bank holding company through acquisition
of 80 per cent or more of the voting shares of:
1) The Guaranty Bank & Trust Company, Hartford
("Guaranty B a n k " ) ; 2) New Britain Bank and
Trust Company, New Britain ( " N e w Britain
B a n k " ) ; and 3) Terryville Trust Company, Terry ville ("Terryville B a n k " ) , all located in Connecticut.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, a newly-formed corporation with no
operating history, was organized for the purpose
of becoming a bank holding company. The banks
have aggregate deposits of $102.0 million, representing 1.6 per cent of total deposits in commercial
banks in Connecticut. 1 Applicant would become
the twelfth largest banking organization in the
State and would hold 1.6 per cent of total commercial bank deposits in the State.
New Britain Bank (deposits of $64.8 million)
operates five offices in the New Britain Standard
1
All banking data are as of December 31, 1972.
Metropolitan Statistical Area ( " S M S A " ) and two
offices in the Hartford SMSA. Guaranty Bank
(deposits of $26.1 million) operates four offices,
all in the Hartford SMSA. The relevant geographic
market in which the competitive effects of the
affiliation of these two banks is to be adjudged
is the Hartford-New Britain banking market approximated by the combined Hartford and New
Britain SMS As. The two SMS As are contiguous,
and the central cities of Hartford and New Britain
are only ten miles apart. Census Bureau data
indicate that approximately 22 per cent of the
resident labor force of New Britain commutes to
the city of Hartford and seven towns surrounding
Hartford.
The Hartford-New Britain banking market is
highly concentrated, the two largest of 24 banks
therein holding 41 per cent and 37 per cent of
market deposits respectively. The third, fourth,
and sixth largest banks in the market are subsidiaries of the same bank holding company which
thereby controls eight per cent of market deposits.
New Britain Bank is the fifth largest bank in the
market holding three per cent of market deposits,
and Guaranty Bank, holding one per cent of deposits in the market ranks as the tenth largest bank
in the market. Applicant would become the fourth
largest banking organization in the market with
approximately 4 per cent of market deposits. Applicant would not thereby control an undue percentage of the Hartford-New Britain market, nor
would consummation of the proposed transaction
result in a significant increase in the concentration
of firms in that market.
Although the closest offices of New Britain
Bank and Guaranty Bank are only six miles apart,
their service areas overlap only in the town of
Newington (population of 26,037, according to
1970 Census of Population). Guaranty Bank does
not have an office in Newington, while New Britain Bank does maintain an office there, which
office competes with the offices of three commer-
LAW DEPARTMENT
cial banks, two mutual savings banks, and a savings and loan association. A fourth thrift institution
has recently been approved in Newington. It appears that reasonable banking alternatives would
be available to the Newington community even
if competition were eliminated between New Britain Bank and Guaranty Bank. The Board concludes that consummation of the proposed transaction would not have a significant adverse effect
on existing competition in the Hartford-New Britain market.
Terryville Bank (deposits of $11.1 million)
operates two offices, both located in the town of
Plymouth, in the Bristol SMS A, the relevant
banking market in which the competitive effects
of the acquisition by Applicant are considered. It
is the third largest of four banks in the market
and holds approximately 20 per cent of deposits
in the market. Although the Bristol SMS A is
contiguous to the Hartford and New Britain
SMSAs and although an office of Terryville Bank
is located only 15 miles from the nearest office
of New Britain Bank and 20 miles from the nearest
office of Guaranty Bank, there is little existing competition between Terryville Bank on the one hand
and New Britain Bank or Guaranty Bank on the
other. Neither New Britain Bank nor Guaranty
Bank derives more than 1 per cent of its other
banking business from the Bristol SMS A; and
Terryville Bank does not derive more than 1 per
cent of its demand deposits, nor more than 3 per
cent of its other banking business, from the service
areas of New Britain Bank and Guaranty Bank.
The law of the State of Connecticut permits
commercial banks to establish branch offices at any
location in the State except in towns in which a
commercial bank is headquartered. Although there
are " o p e n " locations in the service area of the
banks that are the subject of the instant application,
it appears that New Britain Bank is the only one
of the three banks that has the resources to pursue
an expansionary branching policy into the service
areas of the other two banks. However, the towns
around Hartford that are not subject to " h o m e
office protection" are heavily banked, and New
Britain Bank, having recently closed a branch
office after five year«s of unprofitable operations at
that branch, is not considered likely to pursue an
aggressive branching policy in the near future.
Consummation of the proposed transactions is
unlikely to adversely affect potential competition.
Hartford National Corporation, a bank holding
company controlling the largest bank in the Hartford-New Britain market, has objected to the form
of the instant proposal and has urged the Board
899
to restructure the proposal, apparently by requiring
a merger of New Britain Bank and Terryville Bank
into Guaranty Bank, in order to remove the " h o m e
office protection" granted by State law to the
Plymouth community and to assist in the removal
of such protection from the city of New Britain.
Hartford National Corporation notes that State law
effectively prohibits its banking subsidiary from
establishing a branch facility in New Britain, but
recognizes that it may lawfully form a new bank
in New Britain.
Applicant has vigorously opposed the suggestion of Hartford National Corporation stressing the
affirmatively procompetitive effect of the instant
proposal, as a means, in effect, to deconcentrate
the Hartford-New Britain market. Applicant contends that the proposal would be jeopardized, and
the procompetitive effect thereby lost, if New
Britain Bank and Terryville Bank are required to
merge out of existence. As a matter of policy,
the Board opposes " h o m e office protection" statutes as devices to protect a favored few from the
rigors of fair competition, 2 and, where an application has presented significant adverse competitive
effects, or where an Applicant has recognized the
wisdom of free competition and has voluntarily
taken steps that would result in removal of " h o m e
office protection", that removal has been considered a procompetitive consideration and a public
benefit. 3 However, where, as here, an application
presents net procompetitive effects, the Board has
not conditioned its approval upon removal of
" h o m e office protection", 4 and the Board will not
do so in this case.
2
See Order of January 1 9 , 1 9 7 3 approving acquisition of bank
by C B T Corporation, Federal Reserve BULLETIN 111, 112
(February, 1973); See Statement accompanying Order of July
29, 1971 denying acquisition of bank by Midlantic Banks, Inc.,
57 Federal Reserve BULLETIN 6 8 4 , 6 8 6 (August 1971); and
Order of February 17, 1972 approving acquisition of bank by
United Jersey Banks 58 Federal Reserve
BULLETIN 296
(March, 1972).
3
See Statement accompanying Order of February 7, 1972
approving acquisition of bank by Midlantic Banks, Inc., 58
Federal Reserve
BULLETIN 286, 287-288 (March, 1972);
Statement accompanying Order of April 7, 1972 approving
acquisition of bank by Midlantic Banks, Inc., 58 Federal
Reserve BULLETIN 4 7 5 , 477 (May, 1972); Order of February
17, 1972 approving acquisition of bank by United Jersey
Banks, 58 Federal Reserve BULLETIN 296 (March, 1972); and
Order of January 19, 1973 approving acquisition of bank by
C B T Corporation, Federal Reserve BULLETIN 111, 112 (February, 1973).
4
See Statement accompanying Order of April 17, 1970,
approving application by First Connecticut Bancorp, Inc. to
become a bank holding company, 56 Federal Reserve BULLETIN 4 5 2 (May, 1970). That decision is uniquely " o n all fours"
with the instant application having been found to present the
same procompetitive effects in what has become the HartfordN e w Britain banking market that the Board finds are presented
by the instant application.
FEDERAL RESERVE BULLETIN • DECEMBER 1973
900
The financial conditions of Applicant and its
proposed subsidiary banks are generally satisfactory. Management of all three banks is generally considered good, and consummation of the
proposed transaction should provide greater managerial depth to the banks. Prospects for all are
generally favorable in view of Applicant's intention to strengthen and develop the banking operations and services of its subsidiary banks. Accordingly, banking factors weigh in favor of approval
of the application.
Considerations relating to the convenience and
needs of the communities to be served also favor
approval. There is no evidence that the banking
needs of the communities to be served are not
being adequately met. Nevertheless, consummation of the proposed transaction is expected to
enable Guaranty Bank and Terryville Bank to
expand their trust and electronic data processing
services and to offer credit card programs to their
customers. Combined programs for electronic data
processing, investment, personnel, and auditing
should improve the quality of services that the
banks presently offer. Most importantly, it is expected that the convenience and needs of residents
of the Hartford-New Britain banking market,
presently dominated by two banks, will be promoted by the positive competitive effect that the
formation of this new bank holding company is
expected to have in that market. It is the Board's
judgment that the transaction would be in the
public interest and that the application should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board, or by
the Federal Reserve Bank of Boston pursuant to
delegated authority.
By order of the Board of Governors, effective
November 16, 1973.
Voting for this action: Vice Chairman Mitchell and Governors Daane, Brimmer, Sheehan, Bucher, and Holland. Absent
and not voting: Chairman Burns.
(Signed)
CHESTER B .
Secretary
[SEAL]
FIRST
NATIONAL
STATE
TION, NEWARK,
NEW
FELDBERG,
of the Board.
BANCORPORAJERSEY
O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K
First National State Bancorporation, Newark,
New Jersey, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval under § 3(a)(3)
of the Act (12 U.S.C. 1842 (a)(3)) to acquire all
of the voting shares (less directors' qualifying
shares) of the successor by merger to Mechanics
National Bank of Burlington County, Burlington
Township, New Jersey ( " B a n k " ) . The bank into
which Bank is to be merged has no significance
except as a means to facilitate the acquisition of
the voting shares of Bank. Accordingly, the
proposed acquisition of shares of the successor
organization is treated herein as the proposed acquisition of the shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
application and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Applicant, the largest bank holding company in
New Jersey, controls eight banks with aggregate
deposits of approximately $1.5 billion, representing 7.6 per cent of total deposits in commercial
banks in the State. 1 Applicant's acquisition of
Bank (deposits of almost $90 million) would increase its share of commercial bank deposits in
New Jersey by 0.5 percentage point and there
would-be no significant increase in the concentration of banking resources in the State.
Bank operates 15 offices in Burlington County,
New Jersey; three of those offices are in the
Philadelphia-Camden banking market 2 and the remaining 12 offices are in the Trenton banking
market. 3 In the former market there are a total
of 50 commercial banking organizations which
hold combined deposits of over $12 billion. Bank
is the 24th largest organization therein and controls
deposits of approximately $41 million, representing only 0.3 per cent of total market deposits.
Applicant is not represented in this market in
which five of New Jersey's multi-bank holding
companies are present. The Board concludes that
*A11 banking
data are as of
formations and
September 30,
data are as of December 31, 1972; all market
June 30, 1972, and reflect holding company
acquisitions approved by the Board through
1973.
2
The Philadelphia-Camden banking market consists of
Camden County and parts of Gloucester and Burlington Counties in New Jersey and Delaware County, Philadelphia County
and parts of Chester, Montgomery and Bucks Counties in
Pennsylvania.
3
The Trenton banking market consists of Mercer County
and parts of Burlington, Ocean, Monmouth, Middlesex and
Somerset Counties in N e w Jersey and the eastern portion of
Bucks County in Pennsylvania.
LAW DEPARTMENT
approval of the proposed acquisition would not
eliminate existing competition or adversely affect
any banking organization in the PhiladelphiaCamden banking market.
The Trenton banking market is presently served
by 30 commercial banking organizations holding
combined deposits of $1.5 billion; Bank is the
ninth largest therein with deposits of over $40
million, representing 2.7 per cent of deposits in
the market. Four of New Jersey's multi-bank
holding companies, including Applicant, are presently represented in the market. Applicant's subsidiary, First National State Bank of Central Jersey, Trenton ( " C e n t r a l " ) , operates three offices
in the Trenton market with total deposits of $56.2
million and is the sixth largest bank with 3.9 per
cent of market deposits. Upon consummation of
the proposed acquisition, Applicant would become
the third largest banking organization in the Trenton market and hold 6.5 per cent of total deposits
therein. By comparison, the first and second largest banking organizations in the market would
continue to hold 31 per cent and 14 per cent of
those deposits, respectively, and 29 banking organizations would remain in the Trenton market.
The service areas of Bank and Central do not
overlap and the nearest existing offices of the two
banks are approximately eleven miles apart; there
are other banking alternatives located in the intervening area. Central obtains nearly all of its deposits in the Trenton market whereas Bank derives
approximately half of its deposits from the Philadelphia-Camden market and the remaining half
from the Trenton market. In addition, it should
be noted that the respective Trenton market shares
of Central and Bank are generated from different
portions of that market; accordingly, upon approval, Applicant would develop business from a
segment of the Trenton market in which it presently is not represented. Furthermore, Bank does
not derive any meaningful business from the service areas of any of Applicant's other subsidiaries.
The Board concludes that approval of the proposed
acquisition would not eliminate significant existing
competition or adversely affect any banking organization in the Trenton banking market.
It appears that consummation of this proposal
is likely to have only a slightly adverse effect on
future competition between Applicant and Bank
in the aforementioned banking markets. As an
alternative to acquiring Bank, Applicant could
enter the Philadelphia-Camden market by acquiring one of the market's smaller independent banks,
by forming a de novo bank, or by branching into
the market through one of its existing subsidiaries.
901
However, foreclosure of this competition is not
considered serious inasmuch as the Philadelphia-Camden market contains a large number
of independent competitors and bank holding
company subsidiaries. Also, approval herein will
enable Bank to compete more effectively with the
much larger banking organizations already operating in this market.
Similarly, the Board does not find a strong
likelihood of significant competition developing
between Applicant (through Central) and Bank in
the Trenton banking market. Legislation recently
enacted in the State permits branching by each
bank into portions of the market served by the
other; thus, Central may now open branches in
the Burlington County portion of the market while
Bank is permitted to branch into Mercer County.
However, the potential for such competition is
small at present, as only three municipalities in
the Burlington portion of the market are presently
open to branching; such entry into the market will
be restricted until 1975 when branch office protection is removed. Furthermore, due to Bank's low
capital position and poor earnings record, it does
not appear that Bank is likely to branch into the
Mercer County portion of the market in which
Central operates. Although consummation of the
proposal would foreclose the possibility that Applicant would expand in the Trenton market
through branches of its present subsidiaries, the
proposed acquisition would not raise barriers to
entry into the Trenton market since numerous
independent banks would remain available as possible vehicles for entry. On the basis of these and
other facts of record, the Board concludes that
consummation of the proposed acquisition would
not have any significant adverse effect upon existing competition and would have only a slightly
adverse effect on future competition.
The financial condition and managerial resources of Applicant and its subsidiary banks are
satisfactory and future prospects for all are favorable; upon consummation, Bank's financial and
managerial resources will be satisfactory in view
of Applicant's commitment to inject into Bank an
additional $2 million of equity capital. Applicant
proposes to assist Bank in offering new and improved services including trust, data processing,
municipal financing, and international services as
well as an improvement in Bank's general lending
policies. Although it appears that similar services
are presently available in Bank's areas, the increased and improved services would provide customers in both markets with an additional convenient source of full-service banking. Moreover,
902
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Bank is the principal bank serving the area encompassing the Fort Dix Army and McGuire Air
Force Bases. Bank's activities and services are
very limited at these locations and Applicant plans
to appreciably increase those services. Therefore,
convenience and needs considerations are significant and, in the Board's judgment, outweigh the
proposal's slightly adverse effect on competition.
It is the Board's judgment that the proposed acquisition would be in the public interest and that
the application should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made (a) before the thirtieth calendar day following the effective date of
this Order or (b) later than three months after the
effective date of this Order, unless such period
is extended for good cause by the Board or by
the Federal Reserve Bank of New York pursuant
to delegated authority.
By order of the Board of Governors, effective
November 23, 1973.
Voting for this action: Vice Chairman Mitchell and Governors Daane and Holland. Voting against this action: Governor
Bucher. Absent and not voting: Chairman Burns and Governors
Brimmer and Sheehan.
(Signed)
[SEAL]
B. F E L D B E R G ,
Secretary of the Board.
CHESTER
D I S S E N T I N G S T A T E M E N T OF G O V E R N O R
BUCHER
I cannot concur with the majority decision approving the application by First National State
Bancorporation (' 4 Applicant") to acquire the Mechanics National Bank of Burlington County
( " B a n k " ) . There are, in my view, countervailing
considerations which both lessen the asserted public benefits and increase the adverse impact of this
acquisition upon competition. On balance these
factors weigh for a denial.
As noted by the majority, Bank has service areas
in both the Philadelphia-Camden and the Trenton
banking markets. Thus, the market share data
should be evaluated through a consideration of
Bank's location at the interface of these adjacent
SMS A banking markets. My analysis leads me to
believe that Bank, a primarily retail banking
operation with fifteen branch offices, has a strong
marketing position in the growing suburban service areas on either side of this SMS A interface.
Thus, although the two banking markets are not
highly concentrated and Bank has relatively small
market shares in each banking market, there is
significant competitive impact by the acquisition
of Bank by the largest bank holding company in
the State.
I agree with the majority that there is a slightly
adverse effect on existing competition in the Trenton banking market. However, in addition, I think
there would be a substantial elimination of probable future competition in both the Trenton and
Camden banking markets. At present Applicant's
subsidiary bank ( " C e n t r a l " ) , located in the Trenton banking market, could branch or Applicant
could expand de novo into Bank's service area in
the Trenton banking market. By January 1975,
when branch office protection statutes will be
eliminated for the most part in New Jersey, Central
could then branch into Bank's Camden service
area (Burlington County). This is a short period
of time to await further expansion and would cause
little hindrance to future planning. At present
Applicant could expand into the PhiladelphiaCamden market de novo or through a foothold
acquisition.
Present market conditions should give Applicant
a strong incentive to expand into Bank's portions
of these banking markets. Burlington County is
the second fastest growing county in New Jersey.
Bank's service area appears to have substantial
long term growth prospects at the outer fringes
of two metropolitan areas now merging into one
another. These prospects also lessen the risk posed
by possible reductions at the two military bases
in the area. As might be expected in formerly rural
areas, the Camden and Trenton suburbs appear
attractive for expansion given the number of existing bank offices per capita. It should also be
noted that, in spite of its conservative practices,
Bank has grown from approximately $52 million
to near $90 million in deposits over the last five
years.
I would prefer a holding company with the
resources of Applicant to enter new market areas
either de novo or by foothold acquisition. My
study causes me to conclude that this is a reasonable and pro-competitive alternative in this case.
Further, the presence of a large holding company
combined with Bank's existing branch network
may deter the entry of other banks into this area,
thus restricting future banking alternatives available to locally limited consumers.
Affiliation with Applicant would probably be of
some aid to Bank in strengthening its capital and
management. However, given the detrimental
competitive effects, the Board ought to consider
LAW DEPARTMENT
alternative methods to produce these public benefits. Bank's capital accumulation has lagged behind Bank's rapid deposit growth. Earnings have
been below the average of similar sized banks,
primarily due to a recent large fixed investment
in Bank's new main office and to conservative
lending practices. Certainly, under these circumstances, a smaller holding company not already
represented in either of these banking markets
could offer the same assistance to Bank in improving its overall condition. Taking into consideration Bank's marketing position, solid asset
base, good growth potential and history of conservative banking practices, Bank, standing alone,
has the capability to attract and compensate management talent and raise additional capital. An
additional countervailing factor is that as a consumer-directed " r e t a i l " bank with deposits of
about $90 million, Bank has reached a size range
where there would be few further benefits produced by affiliation with a large holding company.
The convenience and needs of the communities
seem to be well served in the Philadelphia-Camden
and the Trenton banking markets. The proposed
services to be offered by Bank are equally available through correspondent banks or through further internal development. Certainly I would foresee little need for a bank of this character to
develop highly sophisticated trust or international
banking services. Therefore, I cannot agree that
the convenience and needs criterion outweighs the
adverse competitive effects.
Given these factors, I view the acquisition of
this sizeable bank as the least desirable form of
expansion by Applicant and as only one of several
alternative methods of raising Bank's competitive
stature. I would deny the application.
GENERAL FINANCIAL SYSTEMS, INC.,
RIVIERA BEACH, FLORIDA
903
ter/Tequesta, Tequesta,
Florida
("Tequesta
Bank").1
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
has expired, and the Board has considered the
applications and all comments received in light of
the factors set forth in § 3(c) of the Act (12 U.S.C.
1842(c)).
Although each of the applications has been
separately considered by the Board, because of the
facts and circumstances common to each, this
Order contains the Board's findings and conclusions with respect to both applications.
Applicant controls one bank, First Marine Bank
& Trust Company, Riviera Beach, Florida ( " R i v iera B a n k " ) , with deposits of about $68 million,
which represents approximately 6.1 per cent of
total deposits in commercial banks in the West
Palm Beach County banking market 2 and about
three-tenths of 1 per cent of all such deposits in
commercial banks in Florida. Riviera Bank is the
fifth largest of 30 commercial banks in the relevant
market. In addition, Applicant owns between 15
per cent and 24.9 per cent of eight other banks,
with aggregate deposits of about $162 million,
including four which are located in the West Palm
Beach County banking market.
Lake Worth Bank, the second largest bank in
the West Palm Beach County banking market,
controls deposits of $84 million, representing 7.5
per cent of total deposits in commercial banks in
said market and about four-tenths of 1 per cent
of all such deposits in commercial banks in
Florida. Lake Worth Bank is located about 12
miles from Riviera Bank; and only very small
proportions of Lake Worth Bank's total deposits
and loans originate in Riviera Bank's service area.
Moreover, although some service overlap exists
between Lake Worth Bank and the other West
Palm Beach County banks, including Tequesta
Bank, in which Applicant owns voting shares, a
O R D E R A P P R O V I N G A C Q U I S I T I O N OF B A N K S
General Financial Systems, Inc., Riviera Beach,
Florida, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval under § 3(a)(3)
of the Act (12 U.S.C. 1842(a)(3)) to acquire 80
per cent or more of the voting shares of: (1) First
National Bank & Trust Company of Lake Worth,
Lake Worth, Florida ( " L a k e Worth B a n k " ) , and
(2) First National Bank & Trust Company, Jupi-
A p p l i c a n t presently owns 2 4 . 9 per cent of the voting shares
of Lake Worth Bank and 24.3 per cent of the voting shares
of Tequesta Bank. Such shares were acquired in 1968 and
1964, respectively without Board approval, since Applicant,
a one-bank holding company, was not then subject to the Act.
Applicant, through the instant applications, seeks Board approval for acquisitions of enough additional shares of Lake
Worth Bank and of Tequesta Bank to give it direct ownership
and control of 80 per cent or more of the outstanding shares
of each bank.
2
Approximated by the upper two-thirds of Palm Beach
County. Banking data are as of December 31, 1972, unless
otherwise indicated.
904
FEDERAL RESERVE BULLETIN • DECEMBER 1973
significant portion of such overlap involves commercial loans and real estate loans and arises, for
the most part, from loan participations between
Lake Worth Bank and such other banks. In addition, Applicant and persons associated with Applicant own voting shares in Lake Worth Bank;
and a close relationship apparently exists between
Applicant and such bank. Consummation of the
proposed acquisition of Lake Worth Bank would
increase Applicant's share of the West Palm Beach
County banking market to 13.6 per cent and cause
Applicant to become the largest banking organization in said market. Such consummation would
not, however, enable Applicant to dominate the
West Palm Beach County banking market, since
12 holding companies, including the second, third
and sixth largest banking organizations in the
State, are represented in said market. Moreover,
six of the market's banking organizations each
control between 6 and 13 per cent of total market
deposits. Accordingly, the Board concludes that
consummation of the proposed acquisition of Lake
Worth Bank would not adversely affect competition in any relevant area.
Tequesta Bank, with deposits of $32.4 million,
is the fourteenth largest bank in the West Palm
Beach County banking market and controls 2.9
per cent of total deposits in commercial banks in
such market. Tequesta Bank is located approximately 10 miles from Riviera Bank and about 22
miles from Lake Worth Bank. The amount of
service overlap between Tequesta Bank and each
of these banks is, accordingly, quite small and
does not represent a substantial anticompetitive
factor. Moreover, Applicant and persons associated with Applicant own approximately 44 per
cent of the outstanding voting shares of Tequesta
Bank. A close relationship apparently has existed
between Applicant and Tequesta Bank since the
latter's formation in 1963; and persons affiliated
with Applicant have always participated in Tequesta Bank's management. Upon consummation
of the proposed acquisition of both Lake Worth
Bank and Tequesta Bank, Applicant would control
16.5 per cent of total deposits in commercial banks
in the West Palm Beach County market. However,
Applicant would continue to face significant competition from numerous strong banking organizations already represented in this market. Accordingly, consummation of the proposed acquisition of Tequesta Bank would not, either in itself
or in conjunction with acquisition of Lake Worth
Bank, enable Applicant to dominate the West Palm
Beach County banking market and would not
adversely affect competition in any relevant area.
It appears that Applicant has previously engaged
in certain nonbanking activities through corporate
interests which were spunoff to its shareholders
on September 30, 1972. However, certain director
interlocks and indebtedness remain with respect
to the transferee of such interests. Under section
2(g)(3) of the Bank Holding Company Act, such
relationships give rise to a presumption of control
of the transferee by Applicant unless the Board,
after opportunity for hearing, determines that Applicant is not, in fact, capable of controlling the
transferee. However, there appear to be no significant competitive factors present in considering the
possible adverse interface between such nonbanking activities and Applicant's present and proposed
banking subsidiaries. Accordingly, the Board believes that the instant applications may be approved without first determining Applicant's control, or lack thereof, of said nonbanking interests;
such a determination shall be made at a later date.
Applicant has indicated that, within six months
after consummation of the proposed acquisitions,
it will make equity additions to the capital structures of Lake Worth Bank, Tequesta Bank, and
Riviera Bank. In light of this commitment and all
facts of record, the Board finds that the financial
and managerial resources of Applicant and each
of subject banks are satisfactory and consistent
with approval of both applications. Considerations
relating to the convenience and needs of the community are likewise consistent with approval.
There are, at present, substantial Statewide bank
holding companies in Florida which represent significant competitive factors in Florida banking; the
addition and strengthening of medium and smaller
companies, like Applicant, should produce public
benefits by enhancing competition throughout the
State. It is the Board's judgment that the proposed
acquisitions are in the public interest and that both
applications should be approved.
Based upon the record, the applications are
approved. The transactions shall not be made (a)
before the thirtieth calendar day following the
effective date of this Order or (b) later than three
months after the effective date of this Order, unless
such period is extended for good cause by the
Board, or by the Federal Reserve Bank of Atlanta
pursuant to delegated authority.
By order of the Board of Governors, effective
November 6, 1973.
Voting for the Board's action approving the acquisition of
Lake Worth Bank: Vice Chairman Mitchell and Governors
Sheehan, Bucher, and Holland. Voting against this action:
Governor Brimmer. Absent and not voting: Chairman Burns
and Governor Daane.
905
LAW DEPARTMENT
Voting for the Board's action approving the acquisition of
Tequesta Bank: Vice Chairman Mitchell and Governors Brimmer, Sheehan, Bucher, and Holland. Absent and not voting:
Chairman Burns and Governor Daane.
[SEAL]
(Signed) CHESTER B. FELDBERG,
Secretary of the Board.
S T A T E M E N T OF GOVERNOR BRIMMER,
CONCURRING IN PART AND DISSENTING IN PART
I would approve the application to acquire Tequesta Bank, but I would deny the application to
acquire Lake Worth Bank.
Acquisition by Applicant of Lake Worth Bank
would unite under a single parent the second and
fifth largest banks in the West Palm Beach County
market and cause Applicant to become the largest
banking organization in that market. Acquisition
of both Lake Worth Bank and Tequesta Bank
raises Applicant's share of the relevant market
from 6.1 per cent to 16.5 per cent—twice that
of all but three of Applicant's competitors and
significantly larger than the share enjoyed by the
market's second largest banking organization. On
the other hand, acquisition only of Tequesta Bank
would increase Applicant's market share to only
9.0 per cent, and it would not place Applicant
in a dominant position in the West Palm Beach
market.
In my view, the Board should not sanction the
elimination of competition between the second and
fifth largest banks in West Palm Beach County;
nor should the Board sanction the elimination of
competition between Lake Worth Bank and Tequesta Bank. Although Applicant now owns shares
of Lake Worth Bank and additional shares of such
bank are held by officers, directors, employees,
and shareholders of Applicant, the record supports
the view that Applicant does not control Lake
Worth Bank and that Applicant's influence with
that bank, though substantial, might decline were
subject application disapproved. The record indicates, for example, that banks in which Applicant
owns minority interests (including Lake Worth
Bank and Tequesta Bank) set their own service
charges and loan rates and that actual competitive
differences do prevail among these various banks.
Such differences are inconsistent with control.
There has been no showing that the anticompetitive effects of the proposed acquisition of Lake
Worth Bank are clearly outweighed in the public
interest by the probable effect of the transaction
in meeting the convenience and needs of the community to be served. Nothing in the record suggests that the banking needs of the community are
being inadequately served at present. Moreover,
Applicant's resolve to inject equity capital into
certain banks, though commendable, should not
influence the Board's result, since one such bank
is not an object of the instant application, and
nothing in the record indicates that Applicant is
the only possible source of equity capital for the
other two.
The record in the instant case contains evidence
of acquiescence (by corporate holders of a significant percentage of shares of Lake Worth Bank)
in management and policy decisions by Applicant's representatives with respect to such bank.
It is my judgment that the facts of this case
warranted closer scrutiny by the Board of the
cooperative arrangements between Applicant and
the corporate organizations involved to determine
whether such arrangements contravene those provisions of the Bank Holding Company Act prohibiting, without prior Board approval, direct or
indirect control of voting shares of a bank.
The application to acquire shares of Lake Worth
Bank should be denied.
ORDERS UNDER SECTION 4(c)(8)
OF BANK HOLDING COMPANY ACT
F&M NATIONAL CORPORATION,
WINCHESTER, VIRGINIA
ORDER D E N Y I N G ACQUISITION OF VIRGINIA L O A N
AND T H R I F T CORPORATION
F&M National Corporation, Winchester, Virginia, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the Board's approval, under § 4(c)(8) of the
Act and § 225.4(b)(2) of the Board's Regulation
Y, to acquire all of the voting shares of Virginia
Loan and Thrift Corporation, Winchester, Virginia
( " C o m p a n y " ) , a company that engages in the
activities of making consumer installment loans
and purchasing consumer installment sales finance
contracts, engaging in the general consumer finance business, selling credit life and credit health
and accident insurance to borrowers, and conducting other financial activities as permitted by the
Code of Virginia as it pertains to industrial loan
associations. Such activities have been determined
by the Board to be closely related to banking (12
CFR 225.4(a)(1), (2) and (9)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 26833). The time
906
FEDERAL RESERVE BULLETIN • DECEMBER 1973
for filing comments and views has expired, and
none has been timely received.
Applicant controls one bank with deposits of
$91.8 million, which represents less than one per
cent of total commercial bank deposits in the State
as of June 30, 1973. In the relevant banking
market (approximated by the city of Winchester
and the counties of Frederick and Clarke), Applicant's bank, Farmers and Merchants National
Bank ( " B a n k " ) , Winchester, Virginia, is dominant, controlling approximately 44 per cent of total
market deposits. The second largest bank controls
approximately 24 per cent of the market deposits;
and the remaining four banks control 32 per cent
in the aggregate. (All banking data are as of June
30, 1972, unless otherwise noted.)
Company (assets of $2.3 million as of June 30,
1973), one of only five industrial loan associations
chartered by the State of Virginia, issues uninsured
"certificates of investment" to fund the making
of consumer installment loans and the purchasing
of consumer installment finance contracts. Company also sells credit life and credit health and
accident insurance to borrowers. Its sole office is
located in Winchester, Virginia.
The relevant product markets for considering the
competitive aspects of the proposed acquisition
appear to be those for consumer loans and thrift
deposits; the relevant geographic market for these
activities is approximately the same as the banking
market in which Bank competes. Bank had outstanding consumer installment loans of the types
made by consumer finance companies of $9.6
million, representing about 39 per cent of consumer installment loans held by commercial banks
in the relevant market, and thrift deposits of $34.8
million representing 32.1 per cent of those held
by banks and nonbanks in the market. In addition
to Bank, Applicant operates two finance companies in Winchester, a subsidiary, Winchester
Credit Corporation ( " C r e d i t " ) , and its subsidiary,
Rouss Finance Company ( " F i n a n c e " ) . Credit and
Finance hold about 32 per cent of the consumer
installment loans held by nonbanking offices in the
relevant market. Company had outstanding consumer loans of $1.5 million representing about 25
per cent of those held by nonbanks in the relevant
market, and 1.4 per cent of market thrift deposits
held by banks and nonbanks.
The market for consumer loans is concentrated,
with the three largest lenders holding about 83 per
cent of outstanding consumer loans. Approval of
the proposed acquistion would increase this threefirm concentration to approximately 88 per cent
and would reduce the number of competing con
sumer loan lenders from 12 to 11. Furthermore,
existing competition between Applicant (the largest consumer loan lender in the market) and Company (the fourth largest consumer loan lender)
would be eliminated, and Applicant's market share
of consumer loans would increase from 38 per cent
to 43 per cent.
The market for thrift deposits is concentrated,
with the top three firms holding almost 75 per cent
of thrift deposits. Approval of the proposed acquisition would increase this three-firm concentration
to 76 per cent and would reduce the number of
competitors in the market from eight to seven.
Existing competition between Applicant (ranked
first in thrift deposits) and Company (ranked seventh) would be eliminated, and Applicant's market
share would increase from 32.1 per cent to 33.5
per cent. The Board concludes that consummation
of the proposal would have a substantially adverse
effect on existing competition in both product
markets.
Virginia law prohibits the chartering of any new
industrial loan institutions, such as Company,
which can obtain funds through the issuance of
certificates of investment. While Applicant would
be effectively unable to form an industrial loan
association de novo, Applicant's bank and nonbanking subsidiaries can offer all of the important
lending services provided by Company. Applicant's proposed acquisition of Company would
eliminate Company as a possible foothold acquisition by a State-wide banking organization not
presently represented in this market or as an acquisition by a nonbank financial company, and
would further entrench Applicant's dominant position. The Board concludes that consummation
would have a substantially adverse effect on potential competition.
Section 4(c)(8) of the Bank Holding Company
Act requires the Board to find that performance
by Company as an affiliate of Applicant " c a n
reasonably be expected to produce benefits to the
public such as greater convenience, increased
competition, or gains in efficiency that outweigh
possible adverse effects, such as undue concentration of sources, decreased or unfair competition,
conflicts of interest or unsound banking practices". In seeking to meet its burden of demonstrating that the acquisition would be in the public
interest, Applicant indicates that affiliation would
strengthen Company's competitive ability. While
Company does have a problem of successor management which Applicant is capable of solving,
Company's earnings are good and there would
appear to be less anticompetitive solutions to the
907
LAW DEPARTMENT
problem than affiliation with Applicant. Applicant
also submitted anticipated reductions in rates
charged by Company. While those anticipated rate
reductions promise some public benefit, based on
the foregoing and other considerations reflected in
the record, the Board finds that the public benefits
to be derived from the proposed acquisition do
not outweigh the substantially adverse competitive
effects of the proposal. Accordingly, the application is hereby denied.
By order of the Board of Governors, effective
November 21, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, Brimmer, Sheehan, Bucher, and Holland.
( S i g n e d ) CHESTER B . FELDBERG,
[SEAL]
Secretary
of the Board.
FIRST VIRGINIA BANKSHARES CORPORATION, FALLS CHURCH, VIRGINIA
ORDER APPROVING ACQUISITION OF ROBERT C .
GILKISON, INC., WASHINGTON, D . C .
First Virginia Bankshares Corporation, Falls
Church, Virginia, a bank holding company within
the meaning of the Bank He ling Company Act,
has applied for the Board's appi val, under section
4(c)(8) of the Act and § 225.4(b)(. > of the Board's
Regulation Y, to acquire all of the noting shares
of Robert C. Gilkison, Inc., Washington, D. C.
( " C o m p a n y " ) , a company registered with the
Securities and Exchange Commission under the
Investment Advisers Act of 1940. Company provides portfolio investment advice on a discretionary and/or advisory basis for individuals, trusts,
and corporations. 1 Such activity has been determined by the Board to be closely related to the
business of banking (12 CFR 225.4(a)(5)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 24933). The time
for filing comments and views has expired, and
none has been timely received.
Applicant, the sixth largest banking organization in Virginia, controls 23 banks with aggregate deposits of $718 million, 2 representing 6.7
per cent of total deposits in commercial banks in
Virginia. One of Applicant's nonbanking subsidi1
Applicant had indicated that Company neither holds nor
votes any securities and that no securities are held in the
Company's name.
2
Banking data are as of December 31, 1972, adjusted to
reflect holding company acquisitions and formations approved
through September 30, 1973.
aries, The Trust Company of First Virginia, Fairfax, Virginia ("Trust C o m p a n y " ) , provides traditional fiduciary services including, for example,
acting as trustee under private and testamentary
trusts, and, in addition, acts as investment adviser
to approximately 40 managing agency accounts
located principally in Virginia. 3 However, only 16
such accounts, representing about 3.5 per cent of
Trust Company's 1972 gross receipts, are located
in Northern Virginia in or near the Washington,
D. C . , SMSA.
Company commenced business as a sole proprietorship in April 1969, and became incorporated under the laws of Washington, D. C., on
January 6, 1971. The Company maintains two
offices; both are located within the Washington,
D. C., SMSA, which approximates the relevant
market. Company is small by industry standards—its 1972 gross receipts totaled only about
$64,000. Moreover, Company competes with a
large number of advisory firms and banks within
the Washington, D. C . , area. Although Company's clients presently number about 155 and it
services portfolios whose aggregate value approximates $37 million, a great number of its clients
are individual investors whose portfolios are not
large by industry standards. In view of the relative
size of Company, the number and size of its
competitors, and other facts of record, the Board
considers that the proposed acquisition would not
eliminate any significant existing competition.
There is no evidence in the record that consummation of the proposed acquisition would lead to
undue concentration of resources, unfair competition, conflicts of interest, unsound banking practices, or other adverse effects. Access to Applicant's data processing facilities may enable Company to improve both the quality and extent of
its services; and affiliation with Applicant will
insure continuity of management in Company
should its present officers ever become unavailable.
In its consideration of subject proposal, the
Board has considered Applicant's expression of
purpose to enter into employment contracts, each
including a covenant not to compete, with Company's two principal officer-shareholders. Covenants not to compete often represent legitimate
business requirements of parties to contracts for
the purchase of a business; and the courts tradi3
O n e of Applicant's subsidiaries advises a real estate investment trust; however, Company has no clients that are real estate
investment trusts. Other nonbanking subsidiaries of Applicant
engage in leasing, mortgage lending, consumer finance, and
insurance activities.
908
FEDERAL RESERVE BULLETIN • DECEMBER 1973
tionally have upheld such covenants if reasonable
in duration, scope, and geographic area. Although
such covenants do not offend the public interest
per se, the Board will scrutinize the facts in each
case to determine whether particular employment
contracts and accompanying covenants not to
compete are consistent with the public interest.
Applicant represents that each covenantee would
be prohibited from soliciting any client, officer,
or employee of Company for a period not to
exceed five years following said covenantee's
departure from Company. Applicant represents
further that this prohibition would not apply to
clients, officers, or employees acquired or hired
by Company after the covenantee's departure and
that, subject to the above restrictions, each covenantee would be free to engage in the investment
advisory business at any geographic location at any
time. Having reviewed the details of the covenants
not to compete proposed by Applicant, the Board
finds that their provisions are consistent with the
public interest, and the existence of such covenants
does not require denial of the application.
Based upon the foregoing and other considerations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under
section 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination
is subject to the conditions set forth in section
225.4(c) of Regulation Y and to the Board's authority to require such modification or termination
of the activities of a holding company or any of
its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of the Act and the Board's regulations and
orders issued thereunder, or to prevent evasion
thereof. The acquisition of Company shall be made
no later than three months after the effective date
of this Order, unless such period is extended for
good cause by the Board or by the Federal Reserve
Bank of Richmond pursuant to authority hereby
delegated.
By order of the Board of Governors, effective
November 29, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell. Daane, Sheehan, Bucher, and Holland. Voting
against this action: Governor Brimmer.
(Signed)
[SEAL]
CHESTER
Secretary
B. F E L D B E R G ,
of the Board.
D I S S E N T I N G S T A T E M E N T OF G O V E R N O R
MANUFACTURERS HANOVER
CORPORATION,
DOVER, DELAWARE
ORDER A P P R O V I N G ACQUISITION OF C I T I Z E N S
MORTGAGE
CORPORATION
On June 25, 1973, the Board issued an order
denying the application of Manufacturers Hanover
Corporation, Dover, Delaware, to acquire substantially all of the assets of Citizens Mortgage
Corporation (''Citizens"), Southfield, Michigan,
pursuant to § 4(c)(8) of the Act and § 225.4(b)(2)
of the Board's Regulation Y. The Board issued
a statement, dated June 29, 1973, explaining its
BRIMMER
I would disapprove the application by First
Virginia Bankshares Corporation to acquire Robert
C. Gilkison, Inc. My decision is based on the
existence of covenants not to compete in proposed
employment contracts between Applicant and
Gilkison Company's two principal officer-shareholders. The proposed covenants would limit
competition between these individuals and Gilkison Company for a period of five years after each
of them leaves the company's employ.
My reasons for disapproving covenants not to
compete have been stated fully in several Dissenting Statements in the past. 1 In general, I disapprove such covenants because they invariably result in a lessening of competition—a result that
is inconsistent with the public interest and thus
in conflict with the standards of the Bank Holding
Company Act. In acting upon an application under
§ 4(c)(8) of the Act, the Board must determine
whether the acquisition can reasonably be expected
to produce benefits to the public, such as greater
convenience, increased competition, or gains in
efficiency, that outweigh possible adverse effects,
such as decreased or unfair competition; and the
Board must deny any application in which possible
adverse effects are not outweighed by public benefits.
The present case is the first in which the Board
has considered a covenant not to compete incident
to acquisition of an investment advisor firm.
However, in my judgment, such covenants are no
less objectionable here than they were in previous
cases. The lessening of competition that will result
from the proposed covenants is not outweighed
by other public interest considerations presented
in the application. Accordingly, I would deny the
application.
1
CBT Corporation,
471; Orbanco, Inc.,
368.
1973 Federal Reserve
1973 Federal Reserve
BULLETIN
BULLETIN
469,
367,
LAW DEPARTMENT
reasons for the denial of the application (1973
Federal Reserve B U L L E T I N 5 3 2 ) .
On August 31, 1973, the Board granted a request for reconsideration filed with the Board by
the Applicant. The request for reconsideration,
which was filed pursuant to § 262.3(g)(5) of the
B o a r d ' s R u l e s of P r o c e d u r e s ( 1 2 C F R
262.3(f)(6)), was granted because the request presented relevant facts (particularly concerning the
public benefits of the application) that, for good
cause shown, were not previously presented to the
Board and reconsideration appeared otherwise appropriate.
Citizens engages in the activities of a mortgage
banking company and acts as an investment advisor to a real estate investment trust. Such activities
have been determined by the Board to be closely
related to banking (12 CFR 225.4(a)(1), (3), and
(5)). Notice of the reconsideration, affording opportunity for interested persons to submit comments and views on the public interest factors, has
been duly published (38 Federal Register 24419).
The time for filing comments and views has expired, and none have been timely received.
Applicant controls five banks with aggregate
deposits of $10.2 billion, representing 9.4 per cent
of the total deposits of commercial banks in New
York. 1 Applicant's lead bank, Manufacturers
Hanover Trust Company ( " B a n k " ) , has deposits
of $10.1 billion and is the fourth largest bank in
the United States. Bank services a mortgage loan
portfolio and originates mortgage loans. Bank, in
general, confines its origination of mortgage loans
on one-to-four family residences to local markets
within New York State while making loans on
income-producing property as well as construction
loans throughout a large part of the nation. During
1971, Bank originated $3.4 million in loans on
income-producing property, $121 million of construction loans, and $8.2 million of loans on
one-to-four family residences.
Citizens (1972 year end assets of $111 million)
primarily operates in the three midwestern states
of Michigan, Ohio, and Illinois. Citizens had a
servicing portfolio of $757 million as of year end
1972 ranking 23rd among mortgage bankers on
this basis. (The Board recognizes that rank based
on servicing volume is an imperfect measure of
the size of the firm. However, in many cases it
is the only measure available for all mortgage
banking firms in a market.) In 1971 it originated
$126 million of mortgages on one-to-four family
residences with $101 million of this total repre1
A11 banking data are as of December 31, 1972.
909
sented by FHA/VA mortgages. During the same
period, Citizens also originated $15.7 million of
mortgages on income-producing property and
made construction loans of $67 million. Since
December, 1968, all of Citizens' shares have been
owned by U. S. Industries, Inc., New York, New
York, a large manufacturing conglomerate.
The Board was concerned in its denial order
with the possibility of the elimination of probable
future competition between Applicant and Citizens. Applicant has been able to provide information which would indicate that the probability of
Citizens expanding into the areas where Applicant
presently competes are very slender. Basically,
this information relates to Citizens' posture as a
subsidiary of U. S. Industries, Inc. This latter
company was reluctant to provide the capital
needed for both product and geographic expansion
by Citizens. In fact, U. S. Industries, Inc., as part
of its general program for its subsidiaries, required
a positive cash flow to it from Citizens. From 1969
to 1972, Citizens provided a net cash flow of about
$2 million to U. S. Industries, Inc. This inhibited
Citizens in expanding its operations into new
areas. 2 In other words, Citizens was in no better
position than an independent mortgage banker, if
as good. This financial background with regard to
Citizens, places its size in proper perspective.
This documentation of the relationship between
Citizens and U. S. Industries has convinced the
Board that Citizens could not be considered a
probable future competitor of Applicant in the
latter's market areas. Applicant could expand into
Citizens' market areas. However, there are numerous potential entrants so that the elimination
of Applicant would not have a substantially adverse effect on future competition.
Another adverse factor related to a covenant not
to compete given Applicant by U. S. Industries,
Inc., which prohibited the latter from engaging in
a business substantially similar to that conducted
by Citizens for a period of five years at any
location in the United States. The Board's majority
felt that the geographic scope in this covenant was
too extensive. Applicant has now completely eliminated this covenant not to compete from its
agreement with U. S. Industries so that this adverse effect is no longer present.
As the Board noted in its earlier denial Order,
Applicant's lead bank and Citizens do not presently compete in the same local markets for mort2
Though Citizens opened three new offices in 1973, Applicant has established, through newly presented information, that
these were opened in contemplation of Applicant's acquisition
of Citizens.
910
FEDERAL RESERVE BULLETIN • DECEMBER 1973
gages on one-to-four family housing. Moreover,
though both do make construction loans and loans
on income-producing property, they are very small
factors in these regional or national markets so
there would not be a significant decrease in existing competition in these product lines.
The Board further notes that Citizens is in need
of additional capital to continue its present level
of operations, and more importantly, to expand
those operations both into new product lines and
geographic areas. Applicant has indicated that it
will add approximately $7 million of equity capital
to Citizens which should enable it to greatly increase its existing operations. In contemplation of
the acquisition of Citizens by Applicant, Citizens
opened three new offices in the fast growing
southeastern United States area. Applicant has
stated that it will continue this type of geographic
expansion if it receives Board approval to acquire
Citizens. Applicant has also indicated it will enlarge Citizens' role in the increasingly important
field of conventional mortgages. Both these types
of expansion would be in the public interest and
constitute positive grounds for approval of the
application.
Applicant has additionally indicated that it will
lower interest fees to mortgagors either through
having Citizens warehouse mortgages until such
time as mortgage rates decline or by charging
lower servicing fees. This commitment is an additional new factor which is in the public interest
and weighs in support of approval of the application.
There is no evidence in the record indicating
that consummation of the proposal would result
in unfair competition, conflicts of interest, or unsound banking practices. The extent of concentration of resources flowing from this case is not
considered undue considering the public benefits
of the proposal. Applicant has agreed that it will
liquidate Citizens Family Assurance Company, a
wholly-owned reinsurance subsidiary of Citizens,
upon consummation of this transaction. Applicant
has further agreed to dispose of an office building
in Ohio and certain land in Michigan as soon as
possible but, in no case, later than two years after
consummation and has stated it will engage in no
land development activities with regard to these
properties during the period of retention. Applicant
does not presently engage in acting as an investment advisor to a real estate investment trust and
its entry into this activity should provide benefits
by enabling Citizens to expand the activity.
Based upon the foregoing and other considerations reflected in the record, the Board has
determined that the balance of public interest fac
tors that the Board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the application
is hereby approved subject to the conditions set
forth in § 225.4(c) of Regulation Y (12 CFR
225.4(c)) and to the Board's authority to require
such modification or termination of the activities
of a holding company or any of its subsidiaries
as the Board finds necessary to assure compliance
with the provisions and purposes of the Act and
the Board's regulations and orders issued thereunder or to prevent evasion thereof.
The transaction shall be consummated not later
than three months after the effective date of this
Order unless such period is extended for good
cause by the Board or by the Federal Reserve Bank
of New York pursuant to delegated authority.
By order of the Board of Governors, effective
September 27, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, Sheehan, Bucher, and Holland. Absent and
not voting: Governor Brimmer. Governor Bucher plans to issue
a concurring statement at a future date.
(Signed)
CHESTER
Secretary
[SEAL]
B. F E L D B E R G ,
of the Board.
MELLON NATIONAL CORPORATION,
PITTSBURGH, PENNSYLVANIA
ORDER
APPROVING
ACQUISITION
MORTGAGE
OF
CARRUTH
COMPANY
Mellon National Corporation, Pittsburgh, Pennsylvania, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board's approval, under § 4(c)(8)
of the Act and § 225.4(b)(2) of the Board's Regulation Y, to acquire all of the voting shares of
Carruth Mortgage Corporation, New Orleans,
Louisiana ( " C a r r u t h " ) , a company that engages
in the activity of general mortgage banking and
acts as an insurance agent with respect to insurance
directly related to the extension of credit, including
specifically mortgage redemption insurance, credit
accident and health insurance, and credit life insurance. Such activities have been determined by
the Board to be closely related to banking (12 CFR
225.4(a)(1) and (9)(ii)(a)).
In addition to the activities enumerated above,
Carruth is presently engaged in the sale of hazard
and flood insurance on collateral securing extensions of credit. Although originally part of the
instant application, the request to continue the sale
of hazard and flood insurance was withdrawn by
Applicant after an objection to that portion of the
Application was filed by a third party and Carruth
will discontinue selling this type of insurance upon
consummation of the transaction.
LAW DEPARTMENT
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 13062). The time
for filing comments and views has expired, and
none has been timely received.
Applicant's only banking subsidiary, Mellon
Bank, Pittsburgh, Pennsylvania, is the largest bank
in the Pittsburgh banking market with deposits of
$3.65 billion. (All banking data are as of December 31, 1972.) Applicant also engages in
mortgage banking activities through two subsidiaries: Mellon National Mortgage Company of
Colorado (doing business as Morrison and Morrison) with an office in Denver, Colorado, servicing
a mortgage portfolio of $82 million, and Mellon
National Mortgage Company of Ohio (formerly
Jay F. Zook, Inc.) with offices in Ohio and Pittsburgh servicing a mortgage portfolio of $496 million. Applicant's subsidiaries presently rank 44th
in the nation in mortgage servicing and upon
acquisition of Carruth would rank as 27th.
Carruth, with assets of $10.7 million and a
mortgage portfolio of $161 million, operates five
offices in New Orleans and one in Baton Rouge,
Louisiana, and derives 80 per cent of its business
from these two markets. Carruth engages in originating and servicing loans on single family residences and to a lesser extent on apartments and
commercial property.
Applicant's two mortgage banking subsidiaries
operate from offices in Ohio, Pennsylvania, and
Colorado; neither of these firms derives any business from the New Orleans or Baton Rouge markets, nor does Mellon Bank hold any mortgage
loans from these markets. No present competition
would be eliminated by consummation of the
proposed acquisition. Moreover, due to the fact
that there are over 80 competitors in the relevant
market arid that the market is over 750 miles from
its present subsidiaries, it is unlikely that Applicant
would enter the New Orleans and Baton Rouge
markets de novo. Consummation of this proposal
will not eliminate any probable future competition.
Accordingly, the Board concludes that approval
of the application, insofar as related to Carruth's
mortgage banking activities, would not have any
adverse effect on competition,
Carruth also sells credit life, credit accident and
health and mortgage redemption insurance. Due
to the limited nature of its insurance activities, it
does not appear that Applicant's acquisition of
Carruth's insurance activities would have any significant effect on existing or future competition.
Considerations relating to the financial and
managerial resources of Applicant, its subsidi
911
aries, and Carruth are generally satisfactory and
consistent with approval of the application. It is
anticipated that consummation of the proposed
acquisition will enable Carruth to provide an increased quantity of mortgage funds in those areas
where it presently operates. It will be able to
participate in additional construction and development loans and increase the size of its loans for
these projects. These advantages will enable Carruth to compete more efficiently in the highly
competitive New Orleans market. There is no
evidence in the record indicating that consummation of the proposed acquisition would result in
undue concentration, unfair competition, conflicts
of interest, unfair banking practices, or other adverse effects.
Under § 4(a)(2) of the Act, Applicant has until
November, 1974, two years from the date of
becoming a bank holding company, to obtain
Board approval to retain Mellon National Mortgage Company of Ohio. Applicant has indicated
its willingness to separately maintain the assets of
Carruth in order to facilitate the Board's future
examination and evaluation of the application to
retain that subsidiary. Accordingly, approval of
this acquisition is conditioned on the segregation
of the assets of Carruth and Mellon National
Mortgage Company of Ohio.
Based upon the foregoing and other considerations reflected in the record, the Board has
determined that the balance of the public interest
factors the Board is required to consider under §
4(c)(8) is favorable. Accordingly, the application
is hereby approved subject to the condition that
Carruth's assets be maintained separate and apart
from those of Mellon National Mortgage Corporation of Ohio. This determination is additionally
subject to the conditions set forth in § 225.4(c)
of Regulation Y and to the Board's authority to
require such modification or termination of the
activities of a holding company or any of its
subsidiaries as the Board finds necessary to assure
compliance with the provisions and purposes of the
Act and the Board's regulations and orders issued
thereunder, or to prevent evasion thereof. The
transaction shall be consummated not later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of
Cleveland pursuant to authority delegated herewith.
By order of the Board of Governors, effective
September 27, 1973.
Voting for this action: Vice Chairman Mitchell and Governors Daane, Bucher, and Holland. Absent and not voting:
Chairman Burns and Governors Brimmer and Sheehan. Gov-
FEDERAL RESERVE BULLETIN • DECEMBER 1973
912
ernor Bucher plans to issue a concurring statement at a future
date.
(Signed)
[SEAL]
CHESTER B .
Secretary
FELDBERG,
of the Board.
C O N C U R R I N G S T A T E M E N T OF G O V E R N O R B U C H E R
I agree with the Board's decisions allowing
Mellon National Corporation to acquire Carruth
Mortgage Corporation and Manufacturers Hanover
Corporation to acquire Citizens Mortgage Corporation; however, these applications confirm my
view that the Board must proceed cautiously and
that a completely unrestrictive acquisition and retention policy for mortgage banking is unjustified.
In the mortgage banking industry there are several
factors which, if examined in each instance, may
provide a good analytical foundation for approval
or denial. This is the focus of my concurring
statement.
One of the fundamental issues to which the
Board must address itself in each acquisition proposal is whether the consumer-home buyer will
be better or worse off if approval is given. Serious
questions can arise as to whether the public benefits relating to operating efficiency, better services,
and lower cost, which are frequently ascribed to
proposed affiliations of mortgage banking firms
with bank holding companies, exist to a significant
degree, especially when larger firms are involved.
The advocacy voiced by applicants may not reflect
the actual probability of the occurrence of the
asserted benefits. Bank holding companies bear the
burden of demonstrating that their proposed nonbanking acquisition will have public benefits outweighing any adverse effects, inasmuch as the
basic balancing test of § 4(c)(8) requires a showing
of public benefits. This balancing test imposes a
generally stricter competitive standard than those
expressed in the antitrust laws.
Applicants also bear the burden of proof for any
other assertions of fact or analysis expressed in
applications. Many acquisitions have, to a greater
or lesser degree, adverse effects on existing or
potential competition. One major problem continually facing the Board in evaluating the competitive impact of mortgage banking applications is
a lack of complete market data. For example, this
is often the case when attempting to determine the
local market shares with respect to mortgage originations. Thus, I would hope that applicants will
become more conscious of this need and will
attempt to develop and provide as much of such
data as possible so that applications can be acted
upon by the Board with full awareness of all
factors relevant to competitive considerations.
The doctrine of potential competition is crucial
to the analysis of applications by holding companies with existing mortgage banking activities.
Given the ease of entry into mortgage banking,
a holding company with or without an existing
mortgage banking affiliate may exert a beneficial
influence upon competitive conditions in a market
by threat of entry. Geographic proximity, the size
and scope of the bank holding company, and
penetration prospects for a market are key factors
in assessing entry probabilities. Thus, market extension acquisitions by large holding companies
need careful analysis to avoid the unnecessary
elimination of probable future competition. Further, given the low entry barriers, de novo or
foothold entry should be favored as a pro-competitive device irrespective of the size of the entering
institution.
Therefore, in my view, greater scrutiny should
be given to the acquisition of the dominant mortgage banking firm in concentrated local markets
by large bank holding companies which are presently in that market, or in an adjacent market. I
would also be particularly cautious in situations
where, without strong countervailing factors, approval is sought of the acquisition by the largest
bank holding companies in the nation of any of
the remaining large national mortgage banking
firms because of the possible questions of either
undue concentration or aggregation of financial
resources. The issue of aggregate concentration
may be applicable particularly in cases where the
combination of two large firms is proposed—even
though they are not actual or potential competitors.
On the other hand, concern expressed over the
prospect of the extinction of an independent mortgage banking industry is, at best, premature. More
probably than not a two-tier industry structure will
emerge consisting of both affiliated and non-affiliated firms. Mortgage banking appears to be a
naturally local business on the "origination s i d e "
of the business with low capital requirements and
minimal economies of scale, but does require at
least one person highly knowledgeable in local real
estate activities. On the " t a k e - o u t " side some
contacts with secondary market buyers are necessary, but the barriers to entry at this interface are
not unsurmountable to the aggressive entrepreneurs characteristic of this business. Once these
business relationships are established, unaffiliated
local firms can probably operate, on balance, as
efficiently as local firms with bank holding company affiliations; and, for this reason, I cannot
foresee them as becoming an endangered species
^among financial institutions. Thus, in fulfilling the
objective of promoting competition in local mar-
913
LAW DEPARTMENT
kets, I see no need to construct a policy specifically designed to protect independent firms. Providing alternative sources of mortgage funds to a
consumer in his market is, in my view, far more
important than preserving individual firms or the
character of an industry.
PHILADELPHIA NATIONAL CORPORATION,
PHILADELPHIA, PENNSYLVANIA
ORDER
DENYING
ACQUISITION
MORTGAGE
OF
HARTZLER
COMPANY
Philadelphia National Corporation,
Philadelphia, Pennsylvania, a bank holding company
within the meaning of the Bank Holding Company
Act, has applied for the Board's approval, under
§ 4(c)(8) of the Act and § 225.4(b)(2) of the
Board's Regulation Y, to acquire all of the voting
shares of Hartzler Mortgage Company, Columbus,
Ohio ("Hartzler"), a company that engages in the
activities of originating, purchasing, selling and
servicing real estate mortgage loans. Such activities have been determined by the Board to be
closely related to banking (12 CFR 225.4(a)(1) and
(3)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (38 Federal Register 22188). The time
for filing comments and views has expired, and
none has been timely received.
Applicant's sole banking subsidiary, Philadelphia National Bank ( " B a n k " ) , is the fourth
largest bank in Pennsylvania and among the 25
largest in the nation. It has total deposits of about
$2 billion representing 5.3 per cent of total domestic deposits in commercial banks in the State. 1
Applicant engages in the mortgage banking business through a direct subsidiary, Colonial Associates, Inc., and through two indirect subsidiaries,
Colonial Mortgage Service Company and Colonial
Mortgage Service Company of California, both of
which are present subsidiaries of Bank. 2 In terms
of volume of mortgages serviced, the two affiliated
Colonial Mortgage Service Companies ("Colonial") are, combined, the sixth largest mortgage
banking companies in the nation with a portfolio
of $1.5 billion. The acquisition of Hartzler and
its affiliation with Colonial would advance Colo*A11 banking data are as of June 30, 1973, adjusted to reflect
acquisitions approved through September 1, 1973.
2
Bank acquired the Colonial Mortgage Service Companies
in 1968, and Applicant has applied to the Board under § 4(c)(8)
of the Act to transfer them from Bank to Applicant's direct
control.
nial to fifth in the national ranking of mortgage
banking companies.
Hartzler engages in the origination of FHA/VA
guaranteed mortgage loans on single-family residences and in the servicing of mortgages from its
headquarters in Columbus and a branch office in
Mansfield, 65 miles to the north. In 1972, Hartzler
originated approximately $12.2 million in mortgage loans and as of December, 1972, was servicing a mortgage loan portfolio of $93.4 million.
Hartzler's loan originations of $4.7 million in the
Columbus market 3 in 1972 represented 1 per cent
of total originations in 1-4 family residential loans
in that area. Hartzler's market share in 1972 of
residential loan originations in the Mansfield market was somewhat larger, 4 representing 8.4 per
cent of all 1-4 family residential loans for that area.
Colonial is Applicant's only direct or indirect
subsidiary which is in a position to compete with
Hartzler in either the Columbus or Mansfield markets. Colonial has an office in Columbus and
originated $12 million in mortgage loans, or 2 per
cent of the total mortgage originations in the
Columbus market in 1972. However, Colonial
originates only construction and commercial loans
while Hartzler deals exclusively in the separate
product market of residential loans. The proposed
transaction, therefore, would not eliminate any
direct competition between the two institutions.
There are fifteen mortgage companies (including
Colonial) with offices in the Columbus market.
Hartzler ranked eleventh among these companies
in 1972 in terms of its volume of mortgage loan
originations. Nine of these fifteen mortgage companies rank among the top 100 mortgage firms
in the nation. All nine of these firms are subsidiaries of a larger holding company or corporation
or are awaiting regulatory agency approval to
become so affiliated. This proposed acquisition
would eliminate one of the largest of the few
independent mortgage banking companies that remain in the Columbus market. In addition, the
presence of such large established mortgage banking firms, several of which are headquartered in
Ohio or the neighbor State of Indiana, has limited
the attractiveness of the Columbus market for de
novo entry. Removal of a remaining independent
mortgage banker by a significant competitor pres-ently in the market may further restrict the ability
of an outside firm to enter the market by raising
the entry barriers even higher.
3
The Columbus
tiguous townships
4
The Mansfield
cent townships to
market includes Franklin County plus conin surrounding counties.
market includes Richland County and adjathe east.
914
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Applicant currently has the capability and interest to commence the origination of residential
mortgage loans in the Columbus and Mansfield
markets. Its interest in the Columbus market is
manifested through the presence of its subsidiary,
Colonial, which originated almost $12 million in
mortgage loans in that market in 1972. Thus,
Colonial provides an adequate base from which
Applicant may expand into the separate product
market of residential loans. Colonial already has
an established office, personnel and contacts in the
market and a demonstrated capability for further
expansion.
At present, Colonial is the sixth largest mortgage banking firm in the nation, based upon a
mortgage servicing volume of $1.5 billion. It
seems likely that Colonial will continue to compete
aggressively to maintain its position as one of the
nation's leading mortgage banking organizations.
It is the Board's judgment that Colonial is likely
to expand its mortgage activities de novo in the
Columbus market to include residential mortgage
lending. The Board concludes, therefore, that
consummation of the proposed transaction is likely
to eliminate potential competition in both the Columbus and Mansfield markets. The Board has
reason to believe that Hartzler has the opportunity
to affiliate with another corporation or holding
company and that such affiliation would not produce the anticompetitive effects stemming from the
present proposal.
Applicant claims that the proposed transaction
would result in greater availability of loans to the
public, improved services, operating efficiencies,
and a continuation of good management. While
the acquisition of a mortgage company by a bank
holding company could have the effect of increasing loans to the public and increasing the efficiency of the mortgage firm, it appears that such
increased efficiency, if it came from a bank holding
company not now competing or likely to compete
in the market, would have a substantially more
desirable impact on the public interest. The Board
concludes that such public benefits as would be
derived from the proposed acquisition do not outweigh the probable adverse effects on potential
competition.
Based upon the foregoing and other considerations reflected in the record, the Board concludes that the public interest factors the Board
is required to consider under § 4(c)(8) do not
outweigh possible adverse effects and that the
request should be denied. Accordingly, the application is hereby denied.
By order of the Board of Governors, effective
November 29, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell, Brimmer, Sheehan, Bucher, and Holland. Absent and
not voting: Governor Daane.
[SEAL]
(Signed) CHESTER B . F E L D B E R G ,
Secretary of the Board.
ORDER UNDER SECTIONS 3 AND 4
OF BANK HOLDING COMPANY ACT
UNION BANCORP, INC.,
LOS ANGELES, CALIFORNIA
ORDER APPROVING FORMATION OF B A N K
H O L D I N G COMPANY
AND
ACQUISITION
OF UNIONAMERICA
LEASING
CORPORATION
AND UNIONAMERICA COMPUTER
CORPORATION
Union Bancorp, Inc., Los Angeles, California,
has applied for the Board's approval under §
3(a)(1) of the Bank Holding Company Act (12
U.S.C. 1842(a)(1)) of formation of a bank holding
company through the acquisition of 100 per cent
of the voting shares of Union Bank, Los Angeles,
California ( " B a n k " ) .
At the same time, Applicant has applied for the
Board's approval under § 4(c)(8) of the Act and
§ 225.4(b)(2) of the Board's Regulation Y to
engage in full-payout leasing activities and electronic data processing activities through the acquisition, respectively, of Unionamerica Leasing
Corporation ( " L e a s i n g " ) and
Unionamerica
Computer Corporation ( " C o m p u t e r " ) , both of Los
Angeles, California. Such activities have been
determined by the Board to be closely related to
banking (12 CFR 225.4(a)(6) and (8)).
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with § § 3
and 4 of the Act (38 Federal Register 19718). The
time for filing comments and views has expired,
and the Board has considered the applications and
all comments received in the light of the factors
set forth in § 3(c) of the Act (12 U.S.C. 1842(c)),
and the considerations specified in § 4(c)(8) of the
Act (12 U.S.C. 1843(c)(8)).
Applicant, recently organized for the purpose
of becoming a bank holding company, has no
business activities and no operating history. The
proposed transactions are part of a plan of reorganization whereby Unionamerica, Inc., Los Angeles, California, the present parent corporation
of Bank, Computer and Leasing, proposes to separate its banking and permissible nonbanking activities from its other nonbanking activities.
Bank, with deposits of $2.7 billion, is the sixth
largest commercial bank in California, controlling
LAW DEPARTMENT
approximately 4 per cent of total deposits in commercial banks in the State. (Banking data are as
of June 30, 1973.) On the record herein, the Board
concludes that consummation of the proposal
would not eliminate any existing or potential
competition, increase the concentration of banking
resources, nor have an adverse effect on the other
banks in any relevant area.
The management, financial condition and prospects of Bank are regarded as generally satisfactory. The management of Applicant is essentially the same as that of Bank, and the financial
condition of Applicant, which will depend, at least
initially, largely upon that of Bank, appears to be
satisfactory. Considerations relating to the convenience and needs of the communities to be
served are consistent with approval. It is the
Board's judgment that the proposed acquisition of
Bank would be consistent with the public interest,
and that the application to acquire Bank should
be approved.
Leasing, which was organized de novo by
Unionamerica, engages in the activity of leasing
personal property or equipment, or acting as agent,
broker, or adviser in leasing such property, where
the lessor recovers its full acquisition cost during
the initial term of the lease from (1) rentals, (2)
estimated tax benefits, and (3) estimated salvage
value. Leasing has primarily engaged in acting as
agent, broker or adviser in arranging such fullpayout lease transactions and, as of December 31,
1972, its gross revenues were only $1.5 million.
In view of Leasing's limited business activity and
the fact that Applicant's acquisition of Leasing is
part of a corporate reorganization, it does not
appear that any existing or potential competition
would be eliminated upon acquisition of Leasing.
Computer, which was originally a division of
Bank, had gross revenues of approximately $4.5
million as of December 31, 1972. Computer is
primarily engaged in providing data processing
services to Bank. Upon consummation of this
proposal, Computer shall limit its activities to: (1)
electronically processing banking, financial and
related economic data, including the development
of computer programs therefor; (2) making excess
computer time available by furnishing its data
processing facility and necessary operating personnel to persons who wish to utilize such time;
(3) selling by-products resulting from the development of programs pertaining to the processing
of banking, financial and related economic data;
and (4) providing any data processing service upon
request of a customer if such service is not otherwise reasonably available in the relevant market.
915
Due to Computer's limited activities and recognizing that Applicant's acquisition of Computer is
part of a corporate reorganization, the Board concludes that acquisition of Computer by Applicant
would not eliminate any existing or potential
competition.
There is no evidence in the record indicating
that consummation of the proposals to acquire
Computer or Leasing would result in any undue
concentration of resources, unfair competition,
conflicts of interest, unsound banking practices,
or other adverse effects upon the public interest.
Based upon the foregoing and other considerations
reflected in the record, the Board has determined
that the balance of public interest factors that the
Board is required to consider regarding the acquisition of Leasing and Computer under § 4(c)(8)
are favorable and that the application should be
approved.
As part of its consideration of the instant application, the Board has also considered the plan of
divestiture ( " p l a n " ) adopted by Unionamerica,
Inc., in order to terminate its status as a bank
holding company in accordance with the irrevocable declaration filed, pursuant to § 225.4(d) of
Regulation Y, by Unionamerica that it would cease
to be a bank holding company by January 1, 1981.
The plan includes the transfer of Bank, Computer
and Leasing to Applicant, and thereafter the
transfer of all of Unionamerica's remaining assets,
including less than 5 per cent of the voting shares
of Applicant, to a new corporation to be named
New Unionamerica. As part of the plan of divestiture, Unionamerica has submitted documents
dated May 14, July 23, August 28, October 4 and
October 8, 1973, to the Board that contain facts
and assurances and make certain commitments that
provide essentially as follows: 1
1. A commitment by Applicant and Bank that
neither corporation will control or exert a controlling influence or attempt to control or exert a
controlling influence over New Unionamerica or
any of its subsidiaries through interlocking officer,
director or policy-making employee relationships
or in any other manner.
2. A commitment by New Unionamerica with
respect to Applicant and all of its subsidiaries
substantially similar to the commitment in paragraph 1.
1
The facts, assurances and commitments contained in the
documents submitted by Unionamerica are set forth in more
detail in the Board's letter of today's date to Applicant. The
contents of the Board's letter, as well as the contents of the
documents described in the Board's Order and letter, are
specifically incorporated into this Order by reference.
916
FEDERAL RESERVE BULLETIN • DECEMBER 1973
3. A commitment by Applicant and Bank that
Applicant and all of its subsidiaries and the respective officers, directors and policy-making employees of Applicant and all of its subsidiaries,
and the spouses and minor children of such officers, directors and policy-making employees, or
any combination of such persons, will not, in the
aggregate, own, control or hold with power to
vote, directly or indirectly, 25 per cent or more
of the outstanding voting shares of New Unionamerica.
4. A commitment by New Unionamerica on
behalf of itself and all of its subsidiaries with
respect to voting shares of Applicant, substantially
similar to the commitment in paragraph 3.
5. A commitment by Applicant and Bank that
Applicant and all of its subsidiaries will not, in
the aggregate, own, control or hold with power
to vote, directly or indirectly, 5 per cent or more
of the outstanding voting shares of New Unionamerica and that neither Applicant nor any of its
subsidiaries will, after the effective date of the
plan, acquire any shares of New Unionamerica.
6. A commitment by New Unionamerica on
behalf of itself and all of its subsidiaries with
respect to shares of Applicant substantially similar
to the commitment in paragraph 5.
7. A commitment by Applicant, Bank, and
New Unionamerica that, with the exception of Mr.
R. H. Volk, the proposed president and a proposed
director of New Unionamerica, who also plans to
serve as a director of Applicant and Bank, and
Dr. H. Craven, who plans to serve as an economist
for both Bank and a subsidiary of New Unionamerica, there will be no interlocking personnel
relationships between New Unionamerica or any
of its subsidiaries and Applicant or any of its
subsidiaries.
8. An affidavit from Mr. R. H. Volk which
states that in acting as a director of Applicant and
Bank: he will not be acting pursuant to an agreement with or under instructions from New Unionamerica and he has not been instructed by Applicant or Bank to take any such instruction from
New Unionamerica; he will not be subject to
control by New Unionamerica; he will not represent the interests of New Unionamerica; and he
will make substantially similar statements with
respect to UB and Bank with regard to his service
as president and a director of New Unionamerica.
Mr. R. H. Volk's affidavit also states that in
serving as a director of Applicant, New Unionamerica and Bank, he will abstain from voting
upon any matter to be acted upon by the board
of directors of any of those, corporations which
involves a conflict of interest with any other of
such corporations.
Notwithstanding the above-mentioned facts, assurances and commitments, the Board is concerned that Applicant may be able to control or
exert a controlling influence over New Unionamerica or New Unionamerica may be able to
control or exert a controlling influence over Applicant. After the effective date of the plan, New
Unionamerica will own slightly less than 5 per
cent of the voting shares of Applicant and Applicant will own, indirectly, approximately 2 per cent
of the voting shares of New Unionamerica, and,
indirectly, Applicant will hold in a fiduciary capacity approximately an additional 3 per cent of
the voting shares of New Unionamerica. Mr. R.
H. Volk, the president and a director of Unionamerica, and a director of Bank, plans to become
the president and a director of New Unionamerica,
a director of Applicant, and remain a director of
Bank. Fifteen other former directors of Unionamerica will also serve on Applicant's eighteenmember board of directors. Applicant, Bank and
New Unionamerica will all be located in the same
office building. Further, there are longstanding and
close associations as well as common interests
between Applicant's proposed subsidiaries and
New Unionamerica's proposed subsidiaries. In
view of these and other facts of record, the Board
regards the interlocking personnel relationship involving Mr. R. H. Volk as being inconsistent with
an effective separation of banking and nonbanking
interests as required by the Act. However, in view
of the size of both Applicant and New Unionamerica, and the fact that Unionamerica is taking
significant action to separate its banking from its
nonbanking interests in advance of the January 1,
1981, deadline provided in its irrevocable declaration, the Board concludes, on the basis of the
particular facts of this case, that Mr. R. H. Volk's
service for New Unionamerica and for Applicant
(and Bank) for a reasonable transitional period of
time does not preclude a Board determination of
an effective separation of banking and nonbanking
interests and does not preclude approval of the
transactions herein, provided that Mr. R. H. Volk
terminates his service as an officer, director or
policy-making employee of Applicant and all of
its subsidiaries or of New Unionamerica and all
of its subsidiaries as soon as practicable, but not
later than January 1, 1977.
Accordingly, on the basis of the facts of record
and for the reasons summarized above, the applications to acquire Bank, Leasing and Computer
are approved subject to all of the referenced facts,
917
LAW DEPARTMENT
assurances, and commitments contained herein
and subject to the further condition that Mr. R.
H. Volk cease to serve as an officer, director or
policy-making employee of Applicant and all of
its subsidiaries or New Unionamerica and all of
its subsidiaries not later than January 1, 1977. The
acquisition of Bank shall not be made (a) before
the thirtieth calendar day following the effective
date of this Order nor (b) shall the acquisition of
Bank, Computer or Leasing be made later than
three months after the effective date of this Order
unless such period is extended for good cause by
the Board or by the Federal Reserve Bank of San
Francisco pursuant to delegated authority. The
determinations as to Leasing and Computer's activities are subject to the conditions set forth in
§ 225.4(c) of Regulation Y and to the Board's
authority to require reports by, and make examinations of, holding companies and their subsidiaries and to require such modification or termination of the activities of a holding company or any
of its subsidiaries as the Board finds necessary to
assure compliance with the provisions and purposes of the Act and the Board's regulations and
orders issued thereunder, or to prevent evasion
thereof. Moreover, the Board's findings and action
herein are subject to amendment, revocation or
nullification by the Board should it conclude that
Applicant or any of its subsidiaries exercises control or a controlling influence over New Unionamerica or any of its subsidiaries or that New
Unionamerica or any of its subsidiaries exercises
control or a controlling influence over Applicant
or any of its subsidiaries.
By order of the Board of Governors, effective
November 7, 1973.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, Brimmer, Bucher, and Holland. Absent and
not voting: Governor Sheehan.
[SEAL]
(Signed) CHESTER B. FELDBERG,
Secretary of the Board.
ORDERS NOT PRINTED IN THIS ISSUE
During November 1973, the Board of Governors approved the applications listed below. The orders
have been published in the Federal Register, and copies of the orders are available upon request to
Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.
ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY A C T APPLICATIONS FOR FORMATION OF BANK HOLDING COMPANY
Applicant
Dawson Corporation,
Lexington, Nebraska
Forest Lake Finance Company,
Forest Lake, Minnesota
Franklin Bancorporation,
Somerset, New Jersey
Illinois Neighborhood Development Corporation, Chicago,
Illinois
Schroder International Holdings
Limited and Schroder International Holdings Limited, both
of London, England
Bank(s)
The Farmers State Bank,
Lexington, Nebraska
Forest Lake State Bank,
Forest Lake, Minnesota
Franklin State Bank,
Franklin Township, New Jersey
The South Shore National Bank of
Chicago, Chicago, Illinois
Schroder Trust Company,
New York, New York
Board action
(effective
date)
Federal
Register
citation
11/12/73
38 F.R. 32176
11/21/73
38 F.R. 32848
11/28/73
38 F.R. 32974
11/29/73
38 F.R. 33419
12/4/73
11/16/73
11/19/73
11/26/73
U129113
38 F.R. 33538
12/5/73
FEDERAL RESERVE BULLETIN • DECEMBER 1973
918
ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT—
APPLICATIONS FOR ACQUISITION OF BANK
Applicant
Alabama Bancorporation,
Birmingham, Alabama
Alpha Agency, Inc.,
Aztec, New Mexico and
Pierce Agency, Inc.,
Aztec, New Mexico
Bank of Virginia Company,
Richmond, Virginia
Barnett Banks of Florida, Inc.,
Jacksonville, Florida
Bank(s)
Fort Payne Bank,
Fort Payne, Alabama
The Citizens Bank,
Farmington, New Mexico
Bank of Virginia-Petersburg,
Petersburg, Virginia
First Bank of Plantation,
Plantation, Florida; University
Bank, Broward County, Florida;
and Riverland Bank, Fort Lauderdale, Florida
Central Bancshares of the South, The First State Bank of Oxford,
Inc., Birmingham, Alabama
Oxford, Alabama
The Chase Manhattan Corporation, The First National Bank of Canton,
New York, New York
Canton, New York
Commonwealth National Corpora- Town Bank and Trust Company,
tion, Boston, Massachusetts
Brookline, Massachusetts
Farmer City Agency, Inc.,
National Bank of Chenoa,
Farmer City, Illinois
Chenoa, Illinois
First at Orlando Corporation,
Peoples Bank of Auburndale,
Orlando, Florida
Auburndale, Florida
First Steuben Bancorp, Inc.,
The Farmers National Bank of
Steubenville, Ohio
Salem, Salem, Ohio
First Tennessee National Corpora- Mosheim Bank, Mosheim, Tennestion, Memphis, Tennessee
see; Sumner County Bank and
Trust Company, Gallatin, Tennessee; and National Bank of
Murfreesboro, Murfreesboro, Tenn.
Heritage B ancorporation,
First Charter National Bank, Monroe
Cherry Hill, New Jersey
Township, New Jersey
Indian Head Banks, Inc.,
Keene National Bank, Keene, New
Nashua, New Hampshire
Hampshire
Mercantile Bankshares CorporaThe Commerce Bank and Trust Comtion, Baltimore, Maryland
pany of Maryland, Bethesda,
Maryland
NBS Financial Corporation,
National Bank of Royal Oak,
Southfield, Michigan
Royal Oak, Michigan
Southeast Banking Corporation,
Peoples National Bank,
Miami, Florida
Naples, Florida
Southeast Banking Corporation,
Southeast Bank of Westland,
Miami, Florida
Hileah, Florida
United First Florida Banks, Inc.
Boynton Beach First National Bank
Tampa, Florida
and Trust, Boynton Beach, Florida
Marine Bank of Kissimmee, KissimUnited First Florida Banks, Inc.
mee, Florida
Tampa, Florida
Federal
Register
citation
F.R. 32841
11/28/73
38 F.R. 31052
11/9/73
Board action
(effective
date)
11/15/73 38
11/1/73
11/6/73
11/1/73
11/26/73
11/5/73
11/12/73
11/1/73
11/27/73
11/15/73
11/29/73
11/12/73
11/12/73
11/6/73
11/19/73
11/12/73
11/15/73
11/6/73
11/19/73
38 F.R. 31470
11/14/73
38 F.R. 31052
11/9/73
38 F.R. 33417
12/4/73
38 F.R. 31565
11/15/73
38 F.R. 32004
11/20/73
38 F.R. 31053
11/9/73
38 F.R. 33536
12/5/73
38 F.R. 32847
11/28/73
38 F.R. 34027
12/10/73
38 F.R. 32003
11/20/73
38 F.R. 32008
11/20/73
38 F.R. 31471
11/14/73
38 F.R. 32975
11/29/73
38 F.R. 32177
11/21/73
38 F.R. 32851
11/28/73
38 F.R. 31471
11/14/73
38 F.R. 31471
11/14/73
919
LAW DEPARTMENT
ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY A C T APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES
Applicant
Continental Illinois Corporation,
Chicago, Illinois
County National Bancorporation,
Clayton, Missouri
Dawson Corporation,
Lexington, Nebraska
Dominion Bankshares Corporation,
Roanoke, Virginia
Fidelity American Bankshares,
Inc., Lynchburg, Virginia
First National City Corporation,
New York, New York
Forest Lake Finance Company,
Forest Lake, Minnesota
FrostBank Corporation,
San Antonio, Texas
Irwin Union Corporation,
Columbus, Indiana
Liberty National Corporation,
Oklahoma City, Oklahoma
Marine Midland Banks, Inc.,
Buffalo, New York
Zions Utah Bancorporation,
Salt Lake City, Utah
Non banking Company
(or activity)
Republic Realty Mortgage Corporation, Chicago, Illinois
General Mortgage Company of St.
Louis, St. Ann, Missouri
The Farmers State Bank,
Lexington, Nebraska
Fitton Insurance Agency, Inc.,
Alexandria, Virginia
Columbia Life Insurance Company,
Phoenix, Arizona
Capital Financial Services, Inc. # 2 1 ,
Portland, Oregon
Forest Lake State Bank,
Forest Lake, Minnesota
Data Processing Center,
San Antonio, Texas
Irwin Union Credit Insurance Company, Phoenix, Arizona
Liberty Financial Corporation and
Liberty Mortgage Company, both
in Oklahoma City, Oklahoma
American Dimensions, Inc.,
Irvine, California
Central Finance Corporation,
Portland, Oregon
Board action
(effective
date)
11/16/73
11/16/73
11/12/73
11/12/73
11/15/73
11/8/73
11/16/73
11/12/73
11/12/73
11/2/73
11/27/73
11/29/73
Federal
Register
citation
38 F.R. 32844
11/28/73
38 F.R. 32845
11/28/73
38 F.R. 32175
11/21/73
38 F.R. 32005
11/20/73
38 F.R. 32846
11/28/73
38 F.R. 31711
11/16/73
38 F.R. 32848
11/28/73
38 F.R. 32007
11/20/73
38 F.R. 32009
11/20/73
38 F.R. 31054
11/9/73
38 F.R. 33537
12/5/73
38 F.R. 33539
12/5/73
ORDERS UNDER BANK MERGER A C T APPLICATIONS TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS
Applicant
The Interim Bank of Oxford,
Oxford, Alabama
The Peoples Bank at Selma Mall,
National Association, Selma,
Alabama
Bank
First State Bank of Oxford,
Oxford, Alabama
The Peoples Bank and Trust Company, Selma, Alabama
Effective
date
11/26/73
11/27/73
Federal
Register
citation
38 F.R. 33420
12/4/73
38 F.R. 33538
12/5/73
920
FEDERAL RESERVE BULLETIN • DECEMBER 1973
ORDERS ISSUED BY FEDERAL RESERVE BANKS
During November 1973, applications were approved by the Federal Reserve Banks under delegated
authority as listed below. The orders have been published in the Federal Register, and copies of the
orders are available upon request to the Reserve Bank.
ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY A C T APPLICATIONS FOR ACQUISITION OF BANK
Applicant
Bank(s)
Reserve Bank
Chemical New York Corpo- First National Bank of
New York
ration, New York,
Greenwich, Greenwich,
New York
New York
Central National CorporaThe First National Bank of
Richmond
tion, Richmond, Virginia
Yorktown, Yorktown,
Virginia
Fidelity American BankPlanters Bank and Trust
Richmond
shares, Inc., Lynchburg,
Company, Chatham,
Virginia
Virginia
United Virginia Bankshares Peoples Bank of Gretna,
Richmond
Inc., Richmond, Virginia
Gretna, Virginia
Central National Bancshares, Adair County State Bank,
Chicago
Greenfield, Iowa
Inc., Des Moines, Iowa
First National Financial
The Moline State Bank,
Chicago
Moline, Michigan
Corp., Kalamazoo, Michigan
First National Bank of Lake
Chicago
Twin Gates Corporation,
City, Lake City, MichiWilmington, Delaware
gan
First Security National
First National Bank in
Dallas
Grand Prairie, Texas
Corp., Beaumont, Texas
Texas National Bank in
Dallas
First Security National
Corp., Beaumont, Texas
Dallas, Dallas, Texas
Effective
date
10/30/73
Federal
Register
citation
38 F.R. 31472
11/14/73
11/15/73
38 F.R. 32842
11/28/73
11/8/73
38 F.R. 32006
11/20/73
11/15/73
38 F.R. 32852
11/28/73
38 F.R. 31351
11/13/73
38 F.R. 32007
11/20/73
11/1/73
11/6/73
11/13/73
38 F.R. 32850
11/28/73
11/23/73
38 F.R. 33418
12/4/73
38 F.R. 33418
12/4/73
11/23/73
Announcements
MARGINAL RESERVES ON LARGE CD's
The Board of Governors of the Federal Reserve
System on December 7, 1973, announced a reduction from 11 per cent to 8 per cent in its
marginal reserve requirement on large-denomination certificates of deposit (CD's). This action—which will reduce the costs to banks of
accommodating the credit needs of their customers—was taken in recognition of the moderation
in bank credit growth achieved over recent
months.
The reduction took effect on deposits in the
week beginning Thursday, December 13, and reduced required reserves 2 weeks later, when there
was a seasonal need to provide reserves to the
banking system. The net effect of the Board's
action was to reduce by about $375 million the
reserves required to support member bank deposits.
A marginal reserve requirement (the regular 5
per cent plus a supplemental 3 per cent) was first
announced by the Board on May 16 as part of
a series of actions designed to curb a rapid expansion in bank credit and help moderate inflationary
pressures. An additional 3 per cent marginal reserve was announced by the Board on September
7, thus raising the total reserve requirement on
affected deposits to 11 per cent.
In recent months, the rate of growth in bank
credit has moderated, and the outstanding amount
of large-denomination CD's has dropped substantially. Business loan expansion at banks has been
at a much slower pace than earlier this year, and
extensions of other forms of bank credit have also
slowed.
The marginal reserve requirement applies to
increases (beyond the amount outstanding in the
week ended May 16) in the total of (1) time
deposits in denominations of $100,000 and over
and (2) bank-related commercial paper and finance
bills with a maturity of 30 days or more. In no
case does the supplemental reserve apply to banks
whose obligations of these types total less than
$10 million.
The Board said the action also affects certain
nonmember State banks and U.S. agencies and
branches of foreign banks that have been voluntarily holding marginal reserves on large CD's at
the request of the Board. The special marginal
reserve held by these institutions will now be
reduced from 6 per cent to 3 per cent. The Board
expressed its appreciation to the nonmember institutions for their continued cooperation.
AMENDMENT TO REGULATION Q
The Board of Governors on December 7, 1973,
issued an amendment to its Regulation Q—
governing payment of interest on deposits—under
which customers of member banks in Massachusetts and New Hampshire may write negotiable
orders of withdrawal (NOW's) against interestbearing savings accounts.
The amendment, effective January 1, 1974, was
adopted pursuant to new legislation permitting all
depository institutions in the two States to allow
customers to write NOW's—which function as
checks—on savings accounts. The customary type
of check may be written only against non-interestpaying demand deposits.
The new rules for the use of NOW's by savings
depositors in Federal Reserve member banks in
Massachusetts and New Hampshire are:
—Maximum interest payable on NOW accounts
is 5 per cent.
—NOW accounts may be owned only by natural
persons (or fiduciary accounts for individuals) and
nonprofit associations eligible to maintain savings
accounts.
—To avoid unfair competition for deposits with
institutions in neighboring States, advertising and
solicitation of NOW account deposits should be
directed toward residents of Massachusetts and
New Hampshire. In this connection, member
banks are requested to offer NOW accounts only
to permanent or temporary residents of Massachusetts and New Hampshire, persons who work in
those States, and current customers.
—The number of negotiable orders of withdrawal that may be processed against an individual
NOW account may not exceed 150 per year.
The Board's rules governing the use of NOW's
in the two States were formulated following careful consideration of the history of the legislation
and of all comments received on a tentative statement of proposed policies issued by the Board on
September 14. The Board also consulted with the
921
922
FEDERAL RESERVE BULLETIN • DECEMBER 1973
other Federal regulatory agencies through the
Inter-Agency Coordinating Committee. The Federal Deposit Insurance Corporation and the Federal
Home Loan Bank Board are also issuing regulations covering institutions under their jurisdiction
in Massachusetts and New Hampshire.
The new rules do not require the imposition of
service charges by member banks on NOW transactions. But the Board suggested that each individual bank charge a fee for transactions if its
earnings from NOW accounts do not fully cover
the cost of establishing and servicing such accounts.
NOW drafts will continue to be cleared, for all
depository institutions, by the Federal Reserve
Bank of Boston through member banks.
In cooperation with the other regulatory agencies, the Board—through the Federal Reserve
Bank of Boston—is establishing a system for
monitoring, on a monthly basis, the use and activity in NOW accounts. The purpose is to generate
timely information on public use and acceptance
of such accounts and to uncover any institutional
weaknesses that may arise from excessive promotional schemes and activities.
The Board has written the chairmen and ranking
minority members of the committees and subcommittees that considered the recent NOW account
legislation, to inform them of the reasons underlying the Board's action. Following are excerpts
from those letters:
The Board has predicated its actions on the belief
that the basic purpose of the NOW account experiment is to make money transfers a feature of
savings accounts owned by individuals. The primary, but not exclusive, beneficiaries of this policy
would be those who do not have checking accounts
but keep their funds in a savings account in a
commercial bank, a mutual savings bank, a savings
and loan association or other thrift institution. The
Board does not believe that NOW accounts should
be made so available and attractive as to result in
the wholesale conversion of demand deposits into
such accounts.
In formulating its rules, the Board has given
close attention to comment it received on its tentative proposals published September 14, just before
the new legislation went into effect. The Board has
considered the views of the other Federal regulatory agencies concerned, and of the banking officials in the two states in which Congress authorized
the experiment in making check-like withdrawals
from interest-bearing deposits.
The Board has also sought to be guided by the
legislative history of PL 93-100 permitting NOW
transfers from savings accounts. This legislative
history indicates that the NOW account experiment
was meant by Congress to be confined to Massachusetts and New Hampshire. Consequently, the
Board is requesting member banks in Massachusetts and New Hampshire to limit the ownership
of NOW accounts to permanent or temporary residents of those states, to persons who work in the
two states and to current customers. Similarly, the
Board has limited direct solicitation of NOW account deposits by member banks to the two states
concerned.
The legislative history also implies that eligible
holders should be limited to natural persons. Savings accounts at commercial banks are limited to
individuals, to fiduciary accounts for the benefit
of individuals, and to certain non-profit associations. The Board has concluded that confining the
use of NOW accounts at member banks to those
who have savings accounts at those banks carries
out the intent of Congress. The Board does not
believe that Congress intended for corporations and
state and local governments to have access to NOW
accounts, and it sees no present reason for permitting such access.
The Board believes that all depository institutions offering this service should be permitted to
pay the same rates of interest on the deposits
supporting NOW accounts.
In its publication of September 14 soliciting
comment on tentative proposals for the use of
NOW accounts, the Board implied concern over
the possibility that NOW accounts might be offered
as a loss leader for attracting deposits. In the
interest of maintaining sound banking, institutions
in these two states should avoid predatory competition implicit in loss leader promotion.
The Board suggests that fees should be charged
where the costs of maintaining and servicing NOW
accounts, including the interest paid to the holder
of the account, are not fully covered by the bank's
earnings on the deposits supporting the account.
One reason for this concern is the fact that savings
accounts at all the depository institutions in Massachusetts and New Hampshire are small on the
average—less than $250—and that the large majority of all savings accounts in the two states is
under $1,000. Thus, a bank's opportunities for
earnings on such accounts are limited. When one
keeps in mind the interest paid to holders of such
accounts, the costs of setting up accounts and the
servicing of transactions, it is clear that unless fees
are charged for NOW transfers many, if not most,
such accounts would be operated at a loss to the
institution offering them. This would tend to undermine the viability of the experiment by undermining the earning capacity and ultimately the
soundness of institutions caught in a competitive
bind. The Board is reluctant to deal with this
possibility by fixing the money equivalent of the
costs of handling a funds transfer in a NOW
account, since this will vary from institution to
institution or customer to customer, or even from
transaction to transaction. The best solution, therefore, appears to be for an individual bank to charge
fees in the light of its own knowledge of the
relation of its costs to its earnings on NOW accounts.
The NOW account may become the vehicle for
wholesale conversion of checking accounts to
923
ANNOUNCEMENTS
tem, Washington, D.C. 20551. The price is $3.50
per copy; in quantities of 10 or more sent to one
address, $3.00 each.
NOW accounts unless some limitation is imposed
upon the use of NOW transfers. The Board has
therefore set a twelve-month limit of 150 such
transfers per account. The NOW account should
be of particular benefit to that segment of the public
that does not maintain checking accounts, and,
therefore, does not make large numbers of payments in some form other than currency. The limit
of 150 transfers per year, consequently, seems
appropriate at the outset to serve that segment of
the public that the Board expects will derive the
primary benefit from the NOW account.
A D M I S S I O N O F S T A T E B A N K S T O M E M B E R S H I P IN
THE FEDERAL RESERVE SYSTEM
The following banks were admitted to membership
in the Federal Reserve System during the period
November 16, 1973, through December 15, 1973:
North Carolina
Winston-Salem
NEW PUBLICATION
Lending Functions of the Federal Reserve Banks:
A History by Howard H. Hackley, formerly General Counsel of the Board, is available for distribution.
This study traces the legal history of the lending
functions of the Federal Reserve Banks: the nature
of the original statutory authority of the Federal
Reserve Banks to make loans; the reasons for
which that authority was given to the Reserve
Banks by the Congress; how and why the authority
has been changed, expanded, or modified by subsequent statutes; the nature of regulations on this
subject that have been issued by the Board of
Governors of the Federal Reserve System; how
the Board has interpreted the law; and how the
law has been construed and applied by the courts.
Copies may be obtained from Publications
Services, Division of Administrative Services,
Board of Governors of the Federal Reserve Sys-
Classification
United Citizens Bank
Virginia
Isle of Wight County .. Bank of Isle of Wight
B A N K S IN H O L D I N G C O M P A N Y G R O U P S :
ADDITIONAL DATA
Statistics for banking offices, assets, and deposits
of banks in holding company groups appeared in
the June 1973 BULLETIN. The table below gives
a further breakdown of totals into multibank and
one-bank classifications.
Multibank and one-bank classifications are
based on the number of banks controlled, directly
or indirectly, by the top-tiered holding company.
Holding companies that are subsidiaries of other
holding companies are eliminated; therefore, the
total number of multibank and one-bank companies is lower than the total number of bank holding
companies shown in the June B U L L E T I N .
Number of
companies
Number of offices
Banks
Branches
Total
Assets
Deposits
Millions of dollars
Total
Member
Nonmember .
1,607
2,720
1,354
1,366
13,441
11,206
2,235
16,161
12,560
3,601
467,487
417,921
49,566
379,355
335,869
43,486
Multibank
Member
Nonmember .
210
1,457
867
590
6,147
5,217
930
7,604
6,084
1,520
238,185
216,039
22,146
193,695
174,359
19,336
One-bank
Member
Nonmember .
1,257
1,263
487
776
7,294
5,989
1,305
8,557
6,476
2,081
229,302
201,882
27,420
185,660
161,510
24,150
13,927
24,398
38,325
739,591
616,592
All commercial
banks
Industrial Production
Released for publication December 14
Industrial production increased by 0.2 per cent in
November, the same rate of increase that occurred
in September and October based on revised figures. The total index in November at 127.2 per
cent of the 1967 average was 5.8 per cent above
a year earlier.
Figures for both September and October were
revised downward with the revisions centered in
business equipment and industrial materials. This
lowered the total index by 0.2 per cent for September and 0.6 per cent for October.
Auto assemblies in November were at an annual
rate of 9.6 million units, up from the 9.4 million
rate in October. Output of most household appliances and TV sets was maintained at advanced
levels in November, but production of furniture
declined. Output of nondurable consumer goods
changed little. Production of durable consumer
goods and of business equipment rose in November. These increases were partially offset by
a decline in output of industrial materials. Production of steel was unchanged, but output of most
durable and nondurable goods materials including
the textile, paper, and chemical grouping was
down. Capacity limitations and shortages of component parts were factors in the recent slower
growth in the total index.
industrial production
SEASONALLY ADJUSTED, RATIO SCALE, 1967=100
CONSUMER GOODS:
1967
1969
1971
1973
1967
1969
1971
1973
F.R. indexes, seasonally adjusted. Latest figures: November.
Seasonally adjusted
1967 = 100
Percentage
change from—
Per cent changes, annual rate
Industrial production
1973
Total
Products, total
Final products
Consumer goods
Durable goods
Nondurable goods
Business equipment
Intermediate products
Construction products
Materials
p
Preliminary.
924
e
Estimated.
1973
Sept.
Oct. p
Nov.e
Month
ago
Year
ago
126.8
127.0
127.2
.2
124.3
122.6
132.4
138.2
130.1
126.5
131.0
134.9
131.3
124.5
122.8
132.9
139.1
130.7
125.8
130.9
135.0
131.2
125.0
123.1
133.2
140.3
130.6
126.6
132.0
135.0
130.7
.4
.2
.2
.9
-.1
.6
.8
-.4
Qi
QII
5.8
9.7
5.5
6.1
5.4
5.8
4.6
7.1
3.7
11.6
3.4
3.8
6.4
10.1
10.7
9.1
19.4
5.1
17.0
7.6
6.6
9.4
5.3
5.0
3.7
9.3
1.3
10.9
4.6
9.8
7.0
3.9
4.3
1.8
-8.8
6.6
11.9
4.0
6.9
8.4
qiii
A 1
Financial and Business Statistics
CONTENTS
A
3
GUIDE TO TABULAR PRESENTATION
A
3
STATISTICAL RELEASES: REFERENCE
U.S. STATISTICS:
A
4
A
A
A
A
A
A
A
A
7
8
9
10
11
12
14
15
Member bank reserves, Federal Reserve Bank credit,
and related items
Federal funds—Major reserve city banks
Reserve Bank interest rates
Reserve requirements
Maximum interest rates; margin requirements
Open market account
Federal Reserve Banks
Bank debits
U.S. currency
A
A
A
A
A
A
A
A
A
A
A
A
16
17
18
24
29
30
31
31
32
35
36
37
Money stock
Bank reserves; bank credit
Commercial banks, by classes
Weekly reporting banks
Business loans of banks
Demand deposit ownership
Loan sales by banks
Open market paper
Interest rates
Security markets
Stock market credit
Savings institutions
A
A
A
A
A
A
A
39
40
42
45
48
49
54
Federally sponsored credit agencies
Federal finance
U.S. Government securities
Security issues
Business finance
Real estate credit
Consumer credit
Continued on next page
94 FEDERAL RESERVE BULLETIN • DECEMBER 1973
U.S. STATISTICS—Continued
A
A
A
A
A
A
A
A
58
62
62
64
66
66
68
70
Industrial production
Business activity
Construction
Labor force, employment, and earnings
Consumer prices
Wholesale prices
National product and income
Flow of funds
INTERNATIONAL STATISTICS:
A
A
A
A
A
A
A
A
A
A
72
73
74
75
76
91
92
93
94
95
U.S. balance of payments
Foreign trade
U.S. gold transactions
U.S. reserve assets; position in the IMF
International capital transactions of the United States
Foreign exchange rates
Central bank rates
Open market rates; arbitrage on Treasury bills
Gold reserves of central banks and governments
Gold production
SPECIAL TABLE:
A 96
Sales, revenue, profits, and dividends of large
manufacturing corporations
A 107
INDEX TO STATISTICAL TABLES
A 3
Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
e
c
p
r
rp
N.S.A.
Estimated
Corrected
Preliminary
Revised
Revised preliminary
I, II,
III, IV Quarters
n.e.c.
Not elsewhere classified
A.R.
Annual rate
S.A.
Monthly (or quarterly) figures adjusted for
seasonal variation
IPC
SMSA
A
L
S
U
*
Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Sources of funds
Uses of funds
Amounts insignificant in terms of the particular unit (e.g., less than 500,000
when the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed
GENERAL INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
A heavy vertical rule is used in the following instances: (1) to the right (to the left) of a total when
the components shown to the right (left) of it add to
that total (totals separated by ordinary rules include
more components than those shown), (2) to the right
(to the left) of items that are not part of a balance sheet,
(3) to the left of memorandum items.
''U.S. Govt, securities" may include guaranteed
issues of U.S. Govt, agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
obligations of the Treasury. "State and local govt."
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.
The footnotes labeled NOTE (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures
are estimates; and (3) information on other characteristics of the data.
TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Quarterly
Sales, revenue, profits, and dividends of large manufacturing
corporations
Issue
Page
Dec. 1973
Annually—Continued
Aug. 1973
A-96
Aug. 1973
A-97
Annually
Bank holding companies:
List, Dec. 31, 1971
Banking offices and deposits of
group banks, Dec. 31, 1972
Banking and monetary statistics:
1972
Page
Banks and branches, number,
by class and State
Apr. 1973
Flow of funds:
Assets and liabilities:
1961-72
Sept. 1973
A-71.14—A-71.28
Sept. 1973
A-70—A-71.13
Feb. 1973
May 1973
A-98—A-99
A-96—A-97
May 1973
May 1973
June 1973
A-96—A-105
A-106—A-lll
A-96—A-101
Jan. 1973
A-98—A-99
A-96—A-97
A-96
Semiannually
Banking offices:
Analysis of changes in number
On, and not on, Federal Reserve
Par List, number
Issue
June 1972
A-98
June 1973
A-102—A-104
Mar. 1973
July 1973
A-100—A-114
A-96—A-99
Flows:
1961-72
Income and expenses:
Federal Reserve Banks
Insured commercial banks
Member banks:
Calendar year
Income ratios
Operating ratios
Stock market credit
Statistical Releases
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Issue
Anticipated schedule of release dates for individual releases
Dec. 1973
Page
A-104
B A N K RESERVES A N D RELATED I T E M S • DECEMBER
A 4
1973
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In millions of dollars)
Factors supplying reserve funds
Reserve Bank credit outstanding
Period or date
U.S. Govt, securities
Total
Bought
outright
1
Held
under
repurchase
agreement
Loans
Float 2
Other
F.R.
assets 3
Gold
stock
Total 4
Special
Drawing
Rights
certificate
account
Treasury
currency
outstanding
Averages of daily figures
1939—Dec
1941—Dec
1945—Dec
1950—Dec
1960—Dec
2,510
2,219
23,708
20,345
27,248
2,510
2,219
23,708
20,336
27,170
9
78
1968—De c
1969—De c
1970—De c
1971—De c
52,529
57,500
61,688
69,158
52,454
57,295
61,310
68,868
75
205
378
290
1972—No v
Dec
71,112
71,094
70,815
70,790
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov.*
72,194
72,307
74,019
75,353
76,758
75,355
77,448
76,653
76,073
78,042
78,457
5
12
19
26
5
381
142
94
765
83
170
652
1,117
1,665
2,612
2,404
24,744
21,606
29,060
17,518
22,759
20,047
22,879
17,954
2,956
3,239
4,322
4,629
5,396
6,810
321
107
3,251
3,235
3,570
3,905
2,204
1,032
982
56,610
64,100
66,708
74,255
10,367
10,367
11,105
10,132
400
400
6,841
7,145
7,611
297
304
606
1,049
2,966
3,479
1,170
1,138
75,959
76,851
10,410
10,410
400
400
8,278
8,293
71.711
72,082
73,624
74,914
76,205
75,047
76,875
76,475
75.712
77,500
77,937
483
225
395
439
553
308
573
178
361
542
520
1,165
1,593
1,858
1,721
1,786
1,789
2,051
2,143
1,861
1,467
1,399
3,267
2,556
2,387
2,319
2,247
2,369
3,113
2,566
2,924
2,933
2,633
1,329
1,004
839
1,043
960
942
1,180
1,018
889
1,122
1,078
78,063
77,600
79,219
80,542
81,889
80,546
83,880
82,445
81,809
83,643
83,625
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,933
11,567
400
400
400
400
400
400
400
400
400
400
400
8,321
8,353
8,406
8,444
8,478
8,518
8,538
8,549
8,584
8,613
8,642
77,382
74,723
75,085
76,499
76,828
74,600
75,085
76,287
554
123
212
2,363
1,488
1,704
2,189
1,756
3,402
3,815
2,572
781
834
901
942
82,349
80,490
81,542
82,263
10,410
10,410
10,410
10,410
400
400
400
400
8,568
8,574
8,586
8,592
3
10
17
24
31
77,917
77,376
78,053
78,419
78,325
76,503
76,360
77,692
78,267
78,072
1,414
1,016
361
152
253
1,519
1,351
1.169
1,912
1,455
2,551
3,096
3,482
3,120
2,251
990
1,041
1,109
1,198
1,198
83,110
82,981
83,884
84,705
83,284
10,410
10,410
10,410
11,567
11,567
400
400
400
400
400
8.598
8.599
8,614
8,622
8,627
7
14
78,007
77,154
79,692
78,886
78,007
76,867
78,365
78,404
1.170
1,521
1,569
1,288
2,194
2,526
2,826
3,270
1,281
287
1,327
482
1,378
826
871
82,701
82,633
84,990
84,370
11,567
11,567
11,567
11,567
400
400
400
400
8,626
8,629
8,650
8,659
77,900
80,378
79,107
76,469
78,606
78,203
,431
,772
904
1,558
2,198
1,914
2,513
2,654
1,950
974
1,265
916
83,090
86,602
83,958
10,410
11,567
11,567
400
400
400
8,614
8,649
8,661
623
1,341
1,278
2,286
4,522
2,498
3,952
4,471
3,036
819
865
950
996
80,595
81,140
82,563
85,580
10,410
10,410
10,410
10,410
400
400
400
400
8,573
8,577
8,590
8,595
1,103
1,069
1,772
1,205
705
1,536
3,367
2,198
3,474
4,561
3,770
3,281
2,654
1,028
1,117
1,170
1,215
1,265
84,612
80,228
85,558
87,329
86,602
10,410
10,410
10,410
11,567
11,567
400
400
400
400
400
8,599
8,599
8,619
8,623
8,649
2,011
2,421
959
839
3,991
1,387
1,486
2,525
2,470
3,584
3,945
1,315
1,375
859
923
81,933
87,359
86,810
85,880
11,567
11,567
11,567
11,567
400
400
400
400
8,626
8,630
8,656
8,661
1,086
Week ending—
1973—Sept.
Oct.
Nov.
21*
28*
End of month
1973—Sept
Oct
Nov.*
Wednesday
1973—Sept.
5
12
19
26
75,896
75,007
74,820
76,969
9
9
9
9
75,896
75,007
74,820
76,346
Oct.
3
10
17
24
31
78,766
73,802
78,952
79,371
80,378
8
9
8
8
8
76,657
73,802
77,849
78,302
78,606
7*
14*
77,207
79,417
80,862
79,466
9
9
8
8
77,207
77,406
78,441
78,507
Nov.
21*
28*
2,109
1
Includes Federal agency issues held under repurchase agreements as
of Dec. 1, 1966, and Federal agency issues bought outright as of Sept. 29,
1971.
2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961
BULLETIN, p . 1 6 4 .
3
Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R.
liabilities and capital" are shown separately; formerly, they were
netted together and reported as "Other F.R. accounts."
4
Includes industrial loans and acceptances until Aug. 21, 1959, when
industrial loan program was discontinued. For holdings of acceptances
on Wed. and end-of-month dates, see tables on F.R. Banks on following
pages. See also note 2.
5 Includes certain deposits of domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with Federal Reserve Banks in connection with voluntary participation by nonmember institutions in the Federal Reserve System's program
of credit restraint.
Notes continued on opposite page.
DECEMBER 1973 • BANK RESERVES AND RELATED ITEMS
A 5
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued
(In millions of dollars)
Factors absorbing reserve funds
Deposits, other
than member bank
reserves,
with F.R. Banks
Currency
in
circulation
Treasury
cash
holdings
7,609
10,985
28,452
27,806
33,019
2,402
2,189
2,269
1,290
408
616
592
625
615
522
50,609
53,591
57,013
61,060
756
656
427
453
64,543
66,060
Treasury
Foreign
Other
F.R.
accounts 3
Other 2,5
Other
F.R.
liabilities
and
capital 3
Member bank
reserves
With
F.R.
Banks
Currency
and
coin 6
Period or date
Total 7
Averages of daily figures
248
292
493
739
1,029
11,473
12,812
16,027
17,391
16,688
-1,105
2,192
2,265
2,287
22,484
23,071
23,925
25,653
604
631
2,378
2,362
294
302
338
275
330
266
341
300
332
266
522
644
645
666
666
652
698
782
838
781
5 752
5 689
1,095
2
354
1,326
271
336
364
373
371
350
354
1,522
365
1,771
1,362
1,439
1,566
2,422
364
338
333
329
2,087
1,120
1,946
1,853
2,595
11,473
12,812
16.027
17,391
19,283
. 1939—Dec.
. 1941—Dec.
. 1945—Dec.
. 1950—Dec.
. 1960—Dec.
4,737
4,960
5,340
5,676
27,221
28,031
29,265
31,329
.1968—Dec.
.1969—Dec.
.1970—Dec.
.1971—Dec.
25,631
24,830
5,813
6,095
7 31,774
31,353
.1972—Nov. 7
Dec.
2,365
2,482
2,530
2,622
2,721
2,732
2,846
2,877
2,848
2,866
2,854
26,220
25,432
25,848
26,281
26,214
25,776
27.156
27,509
28,457
28,130
6,463
6,031
5,856
5,824
6,007
6,086
6,274
6,296
6,402
6,371
6,378
32,962
31,742
31,973
32,277
32,393
32.028
33,542
33,785
34,019
34,912
34,592
.1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct. 3
Nov. '
787
758
859
746
3,069
2,661
2,759
2,875
27,663
26,822
27,543
27,647
6,346
6,591
6,205
6,385
34,121
33,525
33,860
34,144
252
270
276
254
279
713
682
764
5 950
5 655
2,972
2,735
2,802
2,904
3,004
28,073
28,105
28,518
29,128
28,368
6,515
6,606
6,413
5,899
6,496
34,672
34,795
35,015
35,111
34,948
.Oct.
3
10
17
24
31
332
580
557
651
5
5
5
5
2,726
2,738
2,913
2,986
28,062
27,924
28,955
27,990
6,479
6,720
6,015
6,292
34,625
34,728
35,054
34,366
.Nov.
7
14
21»
7-19
1,531
1,247
920
250
353
495
360
1,194
849
1.926
225
146
145
290
458
458
735
728
375
350
1,321
1,449
195
272
65,274
64,564
65,072
66,068
66,726
67,609
68,382
68,394
68,592
68,909
69,927
364
382
384
414
413
386
346
344
349
622
340
2,033
2,956
3,598
3,471
4,121
2,408
3,375
1,674
792
1,718
1,772
68,499
68,955
68,716
68,343
343
340
343
355
68,366
68,886
69,156
68,970
68,787
69,061
69,834
27,377
Week ending—
70,181
70,502
662
696
722
684
..1973—Sept. 5
12
19
26
28 p
End of month
68,217
69,043
70,258
361
342
334
1,624
1,837
1,945
250
426
420
5 798
5 719
5 672
3,021
3,065
3,025
28,240
31,787
27,933
6,515
6,496
6,403
34,839
38,367
34,420
68,965
69,071
68,658
68,453
346
347
358
372
1,102
2
1,105
1,125
284
277
411
459
5 741
5 776
5 1,010
5 670
3,011
2,687
2,786
2,945
25,529
27,367
27,635
30,962
6,346
6,591
6,205
6,385
31,987
34,070
33,952
37,459
68,703
69,331
69,188
69,077
69,043
367
355
381
1,537
342
1,594
2,638
1,124
1,252
1,837
239
265
286
272
426
5
5
5
5
5
612
654
743
673
719
3,101
2,742
2,846
2,986
3,065
29,405
23,652
30,419
32,122
31,787
6,515
6,606
6,413
5,899
6,496
36,004
30,342
36,916
38,105
38,367
.Oct.
3
10
17
24
31
69,626
70,156
70,522
70,655
353
343
333
333
1,557
1,530
1,404
2,001
413
552
759
516
5
5
5
5
654
697
662
645
2,679
2,808
2,988
3,029
27,244
31,870
30,765
29,328
6,479
6,720
6,015
6,292
33,807
38,674
36,864
35,704
.Nov.
7»
14*
21*
28*
.Sept.
.Oct.
. NOV.P
Wednesday
6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning with Jan. 1963, figures are estimated except for
weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date.
7 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
.1973—Sept.
5
12
19
26
included are (beginning with first statement week of quarter): Ql, $279
million;
Q2, $172 million; Q3, $112 million; Q4, $84 million.
8
Includes securities loaned—fully secured by U.S. Govt, securities
pledged
with
F.R. Banks.
9
Includes securities loaned—fully secured by U.S. Govt, securities
pledged with F.R. Banks. Also reflects securities sold, and scheduled to
be bought back, under matched sale/purchase transactions.
For other notes see opposite page.
BANK RESERVES AND RELATED ITEMS • DECEMBER 1973
A 6
RESERVES AND BORROWINGS OF MEMBER BANKS
(In millions of dollars)
Large banks 2
All member banks
All other banks
Period
Borrowings
Reserves
New York City
City of Chicago
Excess
Excess
Total
held 1
Required
Excess 1
1939—Dec
1941—Dec
1945—Dec
1950—Dec
11,473
12,812
16,027
17,391
6,462
9,422
14,536
16,364
5,011
3,390
1,491
1,027
3
5
334
142
2,611
989
48
125
192
58
540
295
14
8
1960—Dec
1965—Dec
1967—Dec
1968—Dec
1969—Dec
1970—De c
1971—Dec
19,283
22,719
25,260
27,221
28,031
29,265
31,329
18,527
22,267
24,915
26,766
27,774
28,993
31,164
756
452
345
455
257
272
165
87
454
238
765
1,086
321
107
29
41
18
100
56
34
25
19
111
40
230
259
25
35
4
15
8
15
18
7
1
1972—No v
Dec
31,774
31,353
31,460
31,134
314
219
606
1,049
4
-20
64
301
1973—Ja n
Feb
Mar
Apr
May
June....
July
Aug
Sept
Oct
Nov.?...
32,962
31 742
31,973
32,277
32,393
32,028
33,542
33,785
34,019
34,912
-34,592
32,620
31,537
31,678
32,125
32,275
31,969
33,199
33,539
33,782
34,712
34,530
342
205
295
152
118
59
343
246
237
200
62
1,165
1,593
1,858
1,721
1,786
1,789
2,051
2,143
1,861
1,467
1,399
95
-13
72
38
-35
-62
144
37
-7
11
11
193
324
176
146
110
145
135
109
115
74
180
33,704
33,694
32,132
30,539
30,728
33,499
33,570
31,346
30,350
30,388
205
124
786
189
340
555
959
494
419
572
38
-32
196
-18
26
2
192
18.
25.
32,619
31,759
32,624
32,398
32,082
31,845
32,390
32,062
537
-86
234
336
1,754
1,502
1,845
1,646
May
2.
9.
16.
23.
30.
32,504
32,246
32,963
32,302
32,226
32,271
32,327
32,600
32,178
32,060
233
-81
363
124
166
1,875
1,484
1,814
1,689
2,401
June
6.
13.
20.
27.
32,218
31,597
32,302
32,224
31,817
31,595
32,121
32,000
401
2
181
224
July
4.
11.
18.
25.
33,328
32,507
33,723
33,827
32,697
32,527
33,262
33,793
Aug.
1.
8.
15.
34,051
33,455
33,827
33,600
33,796
5.
12.
19.
Total
Seasonal
Borrowings
Borrowings
Other
Excess
Borrowings
Excess
Borrowings
5
1,188
1,303
418
232
1
96
50
671
804
1 011
'663
3
4
46
29
8
23
13
85
27
4
8
100
67
50
90
6
42
-35
20
228
105
270
479
264
22
623
330
267
250
177
189
174
40
92
80
180
321
28
42
-14
13
19
55
-1
-42
248
429
-5
-160
275
264
2
-6
8
6
-4
22
-7
24
1
-40
108
105
102
9
12
28
67
53
62
54
29
-33
—33
7
-111
-65
-78
-23
6
31
-11
-86
578
693
857
828
881
904
855
754
712
589
605
-1
—28
-47
45
40
37
88
98
81
115
93
286
471
723
738
783
712
994
1,227
972
750
585
1
80
-15
20
— 11
26
-30
7
31
11
15
23
19
-40
91
-87
-6
261
447
192
136
226
163
176
60
-182
-100
285
289
291
267
243
9
169
-184
146
80
144
24
306
45
18
-14
2
20
8
13
2
18
99
-90
-104
11
865
775
841
795
79
30
18
53
737
690
696
788
16
18
23
32
46
56
-75
49
33
7
222
182
123
30
144
19
-50
42
-27
27
6
33
9
-63
-137
6
-49
-89
868
580
993
815
1,283
49
9
94
-5
49
779
689
689
844
963
1,664
1,700
1,930
1,848
64
67
71
93
62
-78
92
-42
200
31
262
107
34
-1
-24
-7
47
18
9
88
-102
-113
60
689
953
965
1,028
45
11
54
41
728
698
694
713
631
-20
461
34
2,402
1,680
1,720
2,081
111
117
117
128
190
-131
232
-150
454
115
50
57
-51
-2
56
195
28
13
24
103
-52
10
-26
917
759
851
842
169
102
109
42
836
778
856
1,165
33,552
33,381
33,511
33,558
33,673
499
74
316
42
123
2,095
2,006
1,914
2,133
2,561
141
158
148
163
185
266
-40
24
-24
-47
90
50
172
137
12
24
-3
2
-21
88
41
54
36
68
-5
-68
21
-84
2
785
741
656
712
948
114
46
162
36
77
1,222
1,134
1,154
1,213
1,408
26.
34,121
33,525
33,860
34,144
33,644
33,401
33,724
34,070
477
124
136
74
2,363
1,488
1,704
2,189
168
145
139
150
201
-46
-4
-21
143
32
91
217
29
-5
3
27
117
20
15
127
29
-38
-40
-80
799
590
758
855
106
101
65
36
1,304
846
840
990
3.
10.
17.
24.
31.
34,672
34,795
35,015
35,111
34,948
34,220
34,395
35,106
34,741
34,817
452
400
-91
370
131
1,519
1,351
1,169
1,912
1,455
144
131
120
125
119
88
128
-158
131
-69
43
43
26
185
72
7
1
-9
7
30
41
9
58
66
81
130
10
-81
40
1
463
535
520
901
473
143
177
73
108
85
972
764
565
760
829
7.
14.
34,625
34,728
35,054
34,366
34,360
34,707
34,718
34,349
265
21
336
17
1,170
1,521
1,569
1,288
93
80
85
84
102
-109
102
-64
192
262
223
94
-54
-23
8
-54
12
61
16
29
-8
-29
46
-33
383
763
625
543
141
98
96
84
583
435
705
622
5
30
77
124
163
147
126
84
Week ending—
1972—Nov.
1.
8.
15.
22.
29.
1973—Apr.
4.
11.
22.
29.
Sept.
Oct.
Nov.
21*
28P
1 Beginning with week ending Nov. 15, 1972, includes $450 million of
reserve deficiencies on which F.R. Banks are allowed to waive penalties
for a transition period in connection with bank adaptation to Regulation J
as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies
included are (beginning with first statement week of quarter): Ql, $279
million; Q2, $172 million; Q3, $112 million; Q4, $84 million.
2
Beginning Nov. 9, 1972, designation of banks as reserve city banks
for reserve-requirement purposes has been based on size of bank (net
demand deposits of more than $400 million), as described in the Bulletin
for July 1972, p. 626. Categories shown here as "Large" and "All other"
11
parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
NOTE.—Monthly and weekly data are averages of daily figures within
the month or week, respectively. Beginning with Jan. 1964 reserves are
estimated except for weekly averages.
Borrowings at F.R. Banks: Based on closing figures.
Effective Apr. 19, 1973, the Board's Regulation A, which governs lending by Federal Reserve Banks, was revised to assist smaller member banks
to meet the seasonal borrowing needs of their communities.
DECEMBER 1973 • MAJOR RESERVE CITY BANKS
A 7
BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In millions of dollars, except as noted)
NetReporting banks
and
week ending—
Total—46
Oct.
Nov.
Gross transactions
Net transactions
Purchases
of net
buying
banks
Sales
of net
selling
banks
Loans
to
dealers 3
Borrowings
from
dealers 4
5,475
4,859
4,626
4,909
4,403
10,440
11,682
13,072
11,819
11,582
2,572
1,546
2,009
2,461
2,380
1,871
2,262
1,739
1,643
2,048
938
693
886
811
706
933
1,570
853
832
1,342
7,106
6,912
6,547
6,492
4,871
5,020
5,108
5,304
14,068
14,842
14,022
12,962
2,235
1,893
1,439
1,189
2,463
2,560
1,911
1,890
683
774
1,004
765
1,780
1,786
908
1,125
13
1,162
1,071
1,140
1,084
1,295
337
311
354
399
376
825
760
785
684
919
1,656
1,664
1,354
1,273
383
421
421
395
1,272
1,243
933
878
108
809
68
148
423
Borrowings
at F.R.
Banks
Net
interbank
Federal
funds
trans.
Per cent
Surplus
of
avg.
or
deficit required
reserves
Purchases
Sales
Total
two-way
transactions 2
109
164
194
475
233
7,868
10,136
11,063
9,358
9,202
-7,754
-10,118
-11,283
-9,783
-9,364
51.3
65.7
71.0
62.9
60.3
15,915
16,541
17,698
16,728
15,985
8,047
6,405
6,635
7,370
6,783
54
-53
167
256
627
487
270
11,833
12,949
12,584
11,773
-12,034
-13,628
-12,904
-11,955
78.7
87.3
84.0
79.8
18,939
19,861
19,131
18,265
Excess
reserves 1
Related transactions with
U.S. Govt, securities dealers
Interbank Federal funds transactions
Basic reserve position
Net
loans
banks
3
10
17
24
31
7
14
21
28
223
181
-26
50
71
8 in New York City
Oct.
3
10
17
24
31
78
169
-31
12
-1
43
43
14
160
69
3,177
3,651
4,569
3,758
3,521
-3,142
-3,526
-4,614
-3,906
-3,591
51.8
57.2
72.3
63.4
58.3
4,533
4,391
5,367
4,989
4,211
1,357
739
799
1,231
690
1,344
739
799
1,231
690
3,190
3,651
4,569
3,758
3,521
Nov.
7
14
21
28
74
-27
87
12
170
247
189
76
5,072
4,781
4,044
3,692
-5,168
-5,056
-4,147
-3,756
85.7
81.1
67.9
63.3
5,679
5,707
5,093
4,787
607
926
1,048
1,095
607
926
1,048
1,095
5,072
4,781
4,044
3,692
3
10
17
24
31
146
13
5
38
73
66
121
180
315
165
4,691
6,485
6,494
5,599
5,681
-4,612
-6,593
-6,669
-5,877
-5,773
50.9
71.4
70.2
62.6
61.7
11,382
12,150
12,331
11,739
11,774
6,690
5,666
5,836
6,139
6,094
4,131
4,120
3,827
3,678
3,713
7,250
8,031
8,503
8,060
8,061
2,559
1,546
2,009
2,461
2,380
709
,191
600
559
753
601
381
532
411
330
7
14
21
28
-25
80
76
-20
86
379
298
195
6,761
8,168
8,539
8,081
-6,867
-8,572
-8,757
-8,199
74,1
91.5
94.6
90.6
13,260
14,154
14,038
13,478
6,499
5,886
5,499
5,397
4,264
4,093
4,060
4,208
8,996
10,061
9,978
9,270
2,235
1,893
1,439
1,189
807
896
557
618
300
353
583
370
21
2,789
3,359
3,415
2,646
2,844
-2,798
-3,355
-3,456
-2,706
-2,868
173.3
202.6
198.6
161.5
173.4
3,580
4,053
4,080
3,561
3,586
791
694
665
915
741
710
673
637
810
684
2,871
3,380
3,443
2,751
2,902
81
21
28
105
57
404
394
409
430
448
404
313
314
335
333
3,518
3,983
4,142
3,448
-3,543
-4,035
-4,144
-3,437
216.2
247.4
263.6
226.2
4,254
4,504
4,943
4,371
736
521
801
924
652
466
717
847
3,602
4,038
4,225
3,525
84
51
55
84
77
509
600
316
330
414
505
261
330
38 outside
New York City
Oct.
Nov.
507
543
- 2 6
248
5 in City of Chicago
Oct.
Nov.
3
10
17
24
31
12
4
-13
7
14
21
28
-25
- 6
33
-1
- 2
11
33 others
Oct.
3
10
17
24
31
133
9
17
44
39
45
121
151
262
107
1,902
3,126
3,080
2,953
2,836
-1,813
-3,238
-3,214
-3,171
-2,905
24.4
42.8
41.4
41.2
37.7
7,801
8,097
8,251
8,178
8,189
5,899
4,972
5,171
5,225
5,353
3,421
3,447
3,190
2,869
3,029
4,380
4,651
5,061
5,309
5,160
2,478
1,525
1,981
2,356
2,323
305
797
191
130
305
601
300
437
316
235
-296
497
-246
-187
70
Nov.
7
14
21
28
5
-24
82
65
86
328
298
195
3,243
4,185
4,398
4,633
-3,324
-4,537
-4,614
-4,763
43.6
58.6
60.0
63.3
9,006
9,650
9,095
9,107
5,763
5,466
4,698
4,474
3,612
3,628
3,343
3,362
5,394
6,023
5,753
5,745
2,152
1,838
1,355
1,112
298
297
241
287
205
258
528
370
93
39
-287
1 Based upon reserve balances, including all adjustments applicable to
the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies,
if any, were deducted. Excess reserves for later periods are net of all carryover reserves.
2
Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank's weekly average purchases and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing
-82
banks, repurchase agreements (purchases of securities from dealers
subject to resale), or other lending arrangements.
4
Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by Govt, or other issues.
NOTE.—Weekly averages of daily figures. For description of series
and back data, see Aug. 1964 BULLETIN, pp. 944-74.
F.R. B A N K INTEREST RATES • D E C E M B E R 1973
A 8
CURRENT RATES
(Per cent per annum)
Loans to member banks—
Loans to all others under
last par. Sec. 13 3
Under Sec. 10(b) 2
Under Sees. 13 and 13a 1
Federal Reserve Bank
Rate on
Nov. 30,
1973
Effective
date
Previous
rate
Rate on
Nov. 30,
1973
Effective
date
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
m
m
m
m
m
m
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
7
7
7
7
7
7
8
8
8
8
8
8
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
m
m
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14,
14,
14,
1973
1973
1973
1973
1973
1973
7
7
7
7
7
7
8
8
8
8
8
8
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14,
14,
14,
1973
1973
1973
1973
1973
1973
71/2
m
m
m
1 Discounts of eligible paper and advances secured by such paper or by
U.S. Govt, obligations or any other obligations eligible for F.R. Bank
purchase. Maximum maturity: 90 days except that discounts of certain
bankers' acceptances and of agricultural paper may have maturities not
over 6 months and 9 months, respectively.
2
Advances secured to the satisfaction of the F.R. Bank. Maximum
maturity: 4 months.
3 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
Rate on
Nov. 30,
1973
Previous
rate
m
49i/2
9 Vt
9Vi
7%
4
llA
ml
lA
91/2
9Vi
9i/ 2
m
4
m
m
m
m
4
9i/ 2
4
9i/ 2
4
9i/ 2
4
9Vi
4
9i/ 2
71/2
71/2
9%
Effective
date
Previous
rate
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
23,
14,
14,
14,
14,
16,
1973
1973
1973
1973
1973
1973
9
9
9
9
9
9
Aug.
Aug.
Aug.
Aug.
Aug.
Aug.
14,
14,
14,
14,
14,
14,
1973
1973
1973
1973
1973
1973
9
9
9
9
9
9
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof. Maximum maturity: 90 days.
4
Also effective on the same dates as the other rates shown above for
the eight Reserve Banks so designated, a rate of
percent was approved
on advances to nonmember banks, to be applicable in special circumstances
resulting from implementation of changes in Regulation J, which became
effective on Nov. 9, 1972. See "Announcements" on p. 942 of the Oct.
1 9 7 2 BULLETIN a n d p. 9 9 4 o f t h e N o v . 1 9 7 2 BULLETIN.
SUMMARY OF EARLIER CHANGES
(Per cent per annum)
Effective
date
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
In effect Dec. 31, 1954
I1/2
I1/2
1955—Apr. 14
15
May 2
H/2-13,4
IV4
134-214
134-214
1!h
1V4
5
12
Sept. 9
13
Nov. 18
23
1956—Apr. 13
20
Aug. 24
31
1957—Aug.
9
23
Nov. 15
Dec. 2
1958—Jan.
Mar.
Apr.
May
Aug.
Sept.
Oct.
Nov.
22
24
7
13
21
18
9
15
12
23
24
7
2
-214
2 -2%
1%
l3/4
2
2
21/4
21/4
2%
2i/4-2i/ 2
21/2
2V1
2^-3
234-3
234-3
3
234
23/4
3
3
3
3
3V4
3
3
3
-3i/l
3%
-31/1
3
2V4-3
2^4-3
214-3
21/4-234
21/4
IV4-2V4
1%
1*4-2
13/4_2
2
2 -21/2
21/1
21/1
3
2*4
21/4
21/4
21/4
134
l33/4
1 4
2
2
2
Effective
date
1959—Mar.
6.
16.
May 29.
June 12.
Sept. 11.
18.
1960—June
Aug.
Sept.
1963—July
1964—Nov.
1965—Dec.
3.
10.
14.
12.
9.
17.
26.
24.
30.
6.
13.
1967—Apr.
7.
14.
Nov. 20.
27.
1968—Mar. 15.
22.
Apr. 19.
26.
Aug. 16.
30,
Dec. 18,
20.
1969—Apr.
4
21/1
NOTE.—Rates under Sees. 13 and 13a (as described in table and notes
above). For data before 1955, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
-3%
3%
3V4-4
4
3
3
3V4
3i/i
4
4
4
31/2
31/2
3
3
3%
31/2
4
4
-41/2
4%
4 VI
4%
-41/2
4%
4
4
41/2
41/2
4%-5
5
5 -51/2
5%
5i/4-5i/ 2
51/4
5i/4-5i/ 2
51/2
41/2
5
5Vi
51/2
5V4
51/4
5%
51/2
51/2-6
6
6
6
2V2-3
3
3 -3%
31/2
3Vz-4
4
3V4-4
31/2-4
3%
3 -3i/ 2
3
3
4
4
4
4
Effective
date
1970—Nov. 11
13
16
Dec. 1
4
It
1971—Jan.
Feb.
July
Nov.
Dec.
8
15
19
22
29
13
19
16
23
11
19
13
17
24
1973—Jan. 15
Feb. 26
Mar. 2
Apr. 23
May 4
11
18
June 11
15
July
2
Aug. 14
23
In effect Nov. 30, 1973
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
534-6
5%-6
534
51/2-534
51/2-534
51/2
514-514
51/4
5 -514
5 -51/4
5
434-5
434
434-5
5
434-5
434
41/2-434
4V1-434
41/2
6
534
534
534
51/2
51/2
5
5
-5i/i
51/2
51/1-534
53/4
534-6
6
6 -61/1
61/2
7
7 -71/1
m
m
514
51/4
514
5
5
5
434
5
5
5
434
434
4 Vt
41/1
5
51/1
51/2
5i/l
534
6
6
61/2
6i/l
7
71/1
7*4
7%
D E C E M B E R 1973 • RESERVE R E Q U I R E M E N T S
A 9
RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS
(Deposit intervals are in millions of dollars. Requirements are in per cent of deposits.)
Net demand
Effective
date 1
Reserve city
Over
5
0-5
In effect
Jan. 1, 1963.
1966—July 14, 21 .
Sept. 8, 15.
1967—Mar. 2 . . . .
Mar. 1 6 . . . .
1968—Jan. 11, 18.
1969—Apr. 1 7 . . . .
1970—Oct. 1
Time 3
(all classes of
banks)
2
Over
5
0-5
3%
3
16Vi
17
17
17i/2
12
12Vi
12%
13
Other time
0-2
Savings
12
16 %
Effective
date
Other time
Other
0-5
Net demand 2 , 4
31/2
3
10-100 100-400
Over
5
Savings
0-5
1972—Nov. 9 . .
Nov. 16.
10
12
1973—July 19..
101ft 12%
In effect
Nov. 30, 1973 9
IOI/2
7 161/2
13
121/z
Present legal requirement:
Net demand deposits, reserve city banks.
Net demand deposits, other banks
Time deposits
1 When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior
to 1963 see Board's Annual Reports.
2
(a) Demand deposits subject to reserve requirements are gross demand deposits minus cash items in process of collection and demand
balances due from domestic banks.
(b) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank.
(c) Since Oct. 16, 1969, member banks have been required under
Regulation M to maintain reserves against foreign branch deposits computed on the basis of net balances due from domestic offices to their foreign
branches above a specified base and against foreign branch loans to U.S.
residents, which until June 21, 1973, were also maintained above a specified
base. The reserve-free base relating to net balances due from domestic
banks to foreign branches is being reduced gradually beginning July 5,
1973, and will be eliminated by April 1974. The applicable reserve percentage, originally 10 per cent, was increased to 20 per cent on Jan. 7,1971,
and effective June 21, 1973, was reduced to 8 per cent. Regulation D imposes a similar reserve requirement on borrowings above a specified base
from foreign banks by domestic offices of a member bank. The reserve-free
base related to this type of borrowings is being reduced gradually and will
be eliminated by April 1974. Fcr details, see Regulations D and M and
appropriate supplements and amendments thereto.
3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation
club accounts became subject to same requirements as savings deposits.
For
other notes see 2(b) and 2(c) above.
4
Effective Nov. 9, 1972, a new criterion was adopted to designate reserve cities, and on the same date requirements for reserves against net
demand deposits of member banks were restructured to provide that each
member bank will maintain reserves related to the size of its net demand
deposits. The new reserve city designations are as follows: A bank having
net demand deposits of more than $400 million is considered to have the
Over
400 5
131/2
131/2
Over
5 6-9
83
171/2
18
18
Minimum
Maximum
10
7
3
22
14
10
character of business of a reserve city bank, and the presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are F.R. Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see Regulation D and appropriate supplements
and amendments.
5
Reserve city banks.
6
Except as noted below, effective Sept. 20, 1973, member banks are
subject to an 11 per cent marginal reserve requirement against increases
in the aggregate of (a) outstanding time deposits of $100,000 and over,
(b) outstanding funds obtained by the bank through issuance by a bank's
affiliate of obligations subject to the existing reserve requirements on time
deposits, and (c) funds from sales of finance bills. The 11 per cent requirement applies to balances above a specified base, but is not applicable to
banks that have obligations of these types aggregating less than $10 million.
For the period June 21 to Aug. 30, 1973, (a) included only single-maturity
time deposits. A requirement of 8 per cent was in effect for (a) and (b)
from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973.
For details, see Regulation D and appropriate supplements and amendments.
7
The 16 l /i per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
8
See preceding columns for earliest effective date of this rate.
9 For changes to be effective Dec. 27, 1973, see "Announcements."
NOTE.—All required reserves were held on deposit with F.R. Banks
June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member
banks were allowed to count part of their currency and coin as reserves;
effective Nov. 24, 1960, they were allowed to count all as reserves. For
further details, see Board's Annual Reports.
A 10
MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS • DECEMBER 1973
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
Rates beginning July 1, 1973
Rates July 19, 1966—June 30, 1973
Effective date
Effective date
Type of deposit
Type of deposit
July 20,
1966
Savings deposits
Other time deposits—i
Multiple maturity: 2
30-89 days
90 days-1 y e a r . . . .
1 year to 2 years. .
2 years and over. .
Single-maturity:
Less than $100,000—
30 days to 1 year..
1 year to 2 years. .
2 years and over. . .
$100,000 and over—
30-59 days
60-89 days
90-179 days
180 days to 1 year.
1 year or more
1
Sept. 26,
1966
Apr.
Jan. 21,
1970
19,
1968
4%
4
4%
5
3
5
5 /4
5
sy 4
5%
5V2
For exceptions with respect to certain foreign time deposits, see
2
Multiple-maturity time deposits include deposits that are automatically renewable at maturity without action by the depositor and deposits
that
are payable after written notice of withdrawal.
3
Maximum rates on all single-maturity time deposits in denominations
of $100,000 and over have been suspended. Rates that were effective
Jan. 21, 1970, and the dates when they were suspended are:
6i/4
6Yz
6%
7
iy2
per
per
per
per
per
centl
cent f
cent]
cent [
cent J
Nov. 1,
1973
5
5V4
6
6%
(43)
5
5 V4
6
6%
()
June 24, 1970
May 16, 1973
Rates on multiple-maturity time deposits in demonination of $100,000
or more were suspended July 16, 1973, when the distinction between
single- and multiple-maturity deposits was eliminated.
4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year
NOTE.—Maximum rates that may be paid by member banks are established by the Board of Governors under provisions of Regulation Q;
however, a member bank may not pay a rate in excess of the maximum
rate payable by State banks or trust companies on like deposits under
the laws of the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
For previous changes, see earlier issues of the B U L L E T I N .
(Per cent of market value)
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
On margin stocks
1937-- N o v .
1945-- F e b .
July
1946--Jan.
1947-- F e b .
1949-- M a r .
1951-—Jan.
1953-- F e b .
1955-—Jan.
Apr.
1958--Jan.
Aug.
Oct.
1960—July
1962--July
1963-- N o v .
1
5
5
21
1
30
17
20
4
23
16
5
16
28
10
6
On convertible bonds
Ending
date
1945—Feb.
July
1946—Jan.
1947—Jan.
1949—Mar.
1951—Jan.
1953—Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.
June
1968-—Mar. 11
8
1970—May
June
1970—May
6
1971—Dec.
1971-- D e c .
6
1972—Nov.
Effective Nov. 24, 1972
4
4
20
31
29
16
19
3
22
15.
"
4.
15.
27
9
5.
10.
7..
5..
3..
22.
On short sales
(T)
40
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
50
50
75
100
75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55
65
50
60
50
50
50
70
80
65
55
65
NOTE.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit
to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is
a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference
between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation.
Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective
Mar. 11, 1968.
()
certificates with minimum denomination of $1,000. The amount of such
certificates that a bank could issue was limited to 5 percent of its total
time and savings deposits. Sales in excess of that amount were subject to
the 6 y 2 per cent ceiling that applies to time deposits maturing in 2% years
or more.
Effective Nov. 1, 1973, a ceiling rate of 11/a per cent was imposed on
certificates maturing in 4 years and over with minimum denomination
of $ 1,000. There is no limitation on the amount of these certificates that
banks may issue.
MARGIN REQUIREMENTS
Beginning
date
71/4
3
( 33 )
( )
03)
(3)
( )
5%
5Y4
6
}6y 4
BULLETIN f o r F e b . 1968, p. 167.
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more
Savings deposits
Other time deposits (multiple- and singlematurity)—
Less than $100,000:
30-89 days
90 days to 1 year
1 year to 2% years. . .
2 lA years and over
4 years and over in minimum denomination of $1,000
$100,000 and over
July 1,
1973
D E C E M B E R 1973 • O P E N M A R K E T A C C O U N T
A 11
TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In millions of dollars)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills
Gross
purchases
1
Others within 1 year
Gross Redempsales
tions
Gross
purchases
11,074 5,214
8,896 3,642
8,522 6,467
2,160
1,064
2,545
99
1,036
125
535
393
941
282
635
498
150
300
42
1,855
1,558
1,569
1,377
717
1,047
1,640
655
480
2,117
530
695
260
200
200
51
600
163
60
456
564
"623
218
495
945
401
153
Total outright
Gross
purchases
Redemptions
Gross
sales
Exch.,
Gross maturity
sales shifts, or
redemptions
- 5 years
Gross
purchases
-3,483
-6,462
2,933
848
,338
789
Over 10 years
5-10 years
Gross Exch. or
sale£ maturity
shifts
Gross
purchases
5,430
4,672
-1,405
Gross Exch. or
sales maturity
shifts
249
933
539
Gross
purchases
-1,845
685
-2,094
-1,408
32
61
3,476
-2,068
1,316
-1,316
123
27
351
836
Gross
purchases
Repurchase
agreements
(U.S. Govt,
securities)
Gross
purchases
-78
78
468
-23
-919
-813
ioo
Federal agency obligations
Net
change
in U.S.
Govt,
securities
Gross
sales
Outright
Gross
purchases
Sales or
redemptions
Repurchase
agreements,
net
Bankers'
acceptances,
net
Repurchase
agreements
Outright
5,214
3,642
6,467
2,160
2,019
2,862
12,177
16,205
23,319
12,177
16,205
23,319
33,859
44,741
31,103
33,859
43,519
32,228
4,988
8,076
-312
485
1,197
370
-88
652
393
941
282
635
498
150
351
135
2,143
2,245
4,142
2,143
2,245
4,142
3,594
3,547
4,863
3,594
3,547
4,765
220
-593
405
166
149
22
9
14
13
7
1,855
1,754
1,569
1,584
717
1,274
1,666
530
695
260
1,205
4,521
1,941
1,205
4,521
1,941
2,101
1,105
4,630
3,405
9,632
6,981
4,735
9,719
2,774
6,024
5,664
7,379
5,621
7,651
2,234
3,309
8,220
8,928
3,034
5,478
5,978
8,240
5,621
6,686
2,492
2,752
7,859
2,116
599
1,656
48
11
-3
1,006
1,316
2,117
150
250
"-4ii
12,362
12,515
10,142
623
218
495
945
401
153
-102
'i27
Gross
sales
200
200
51
600
163
60
807
1,400
Gross Exch. or
sales maturity
shifts
93
311
167
35
360
-135
Matched
sale-purchase
transactions
(Treasury bills)
1
2
2,101
1,105
4,630
3,405
9,632
6,981
4,735
1 Before N o v . 1973 BULLETIN, included matched sale-purchase transactions, which are now shown separately.
2
Includes special certificates acquired when the Treasury borrows
directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972,
38; Aug. 1973; 351; Sept. 1973, 836.
22
-9
7
- 6
- 2 8
61
-65
-29
1,218
-1,367
893
2,076
-1,005
72
2,325
- 6
101
229
174
106
157
-95
-20
176
7
-1
-17
-12
-7
-9
8
3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers' acceptances.
NOTE.—Sales, redemptions, and negative figures reduce System holdings ; all other figures increase such holdings.
CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS
(In millions of U.S. dollar equivalent)
Total
Pounds
sterling
Austrian
schillings
Belgian
francs
Canadian
dollars
Danish
kroner
French
francs
German
marks
60
98
2
Italian
lire
Japanese
yen
Netherlands
guilders
,967
257
18
1,575
154
3
34
122
211
200
192
*
*
*
*
*
24
85
164
164
164
16
20
20
92
*
•
*
*
67
20
•
5
*
*
*
199
Swiss
francs
125
3
35
21
7
6
3
3
3
3
3
3
3
3
A 12
FEDERAL RESERVE B A N K S • D E C E M B E R 1973
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday
End of month
1973
Item
Nov. 28
Nov. 21
Nov. 14
1972
1973
Nov. 7
Oct. 31
Nov. 30
Oct. 31
Nov. 30
Assets
11,460
400
Special Drawing Rights certificate account
Loans:
Member bank borrowings
Other
Acceptances:
Federal agency obligations:
U.S. Govt, securities:
Bought outright:
Bills
Other
11,460
400
11,460
400
11,460
400
11,460
400
11,460
400
10,303
400
297
309
308
311
315
305
315
323
1,486
1,387
3,991
839
2,198
1,914
2,198
501
43
17
41
77
39
67
47
47
60
45
26
47
60
63
1,810
79
1,789
323
1,739
199
1,739
1,739
148
1,810
168
1,739
148
1,177
35,362
35,351
34,865
34,666
36,065
35,058
36,065
29,222
38,186
3,149
38,152
3,149
37,374
3,428
37,374
3,428
37,374
3,428
38,186
3,149
37,374
3,428
36,681
3,598
i 76,652 1,275,667
1,812
2,098
1,275,468
i 76,867
1,624
i 76,393
736
i 76,867
1,624
i 69,501
i 76,697
880
Total bought outright
Held under repurchase agreements
11,460
400
Total U.S. Govt, securities
77,577
78,750
77,479
75,468
78,491
77,129
78,491
69,501
Cash items in process of collection
81,012
^9,481
221
82,367
2*9,551
219
83,514
2*9,123
218
78,093
2*8,164
219
82,683
8,306
217
81,092
2*6,636
221
82,683
8,306
217
71,242
7,551
168
4
698
4
636
5
1,152
7
1,089
4
1,044
4
691
4
1,044
200
673
f103,573
2*104,946
2*106,180
2*99,743
104,429
2*100,809
104,429
90,860
Other assets:
Denominated in foreign currencies
Liabilities
Deposits:
Other:
All other 3
Other liabilities and accrued dividends
62,518
62,401
62,070
61,557
60,943
62,128
60,943
57,400
2*29,328
2,001
516
P30,765
1,404
759
p31,870
1,530
552
2*27,244
1,557
413
31,787
1,837
426
2*27,933
1,945
420
31,787
1,837
426
23,783
1,182
188
645
662
697
654
719
672
719
629
P32,490
P33,590
f34,649
2*29,868
34,769
2*30,970
34,769
25,782
5,536
973
5,967
1,034
6,653
957
5,639
916
5,652
986
4,686
942
5,652
986
5,201
623
2*104,329
2*97,980
102,350
2*98,726
102,350
89,006
832
793
226
834
793
136
834
793
452
838
793
452
834
793
452
787
742
325
2*99,743
104,429
2*100,809
104,429
90,860
^101,517
P\02,992
Capital accounts
Total liabilities and capital accounts
Contingent liability on acceptances purchased for
Marketable U.S. Govt, securities held in custody for
838
793
425
836
793
325
2*103,573
2*104,946
P106,180
605
604
600
596
589
604
589
199
26,958
26,501
26,818
26,908
27,230
27,354
27,230
31,512
Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to Bank)
Collateral held against notes outstanding:
U.S. Govt, securities
i See note 8 on p. A-5.
66,084
65,955
65,526
65,192
65,119
66,229
65,119
60,886
2,455
64,930
2,455
64,930
2,415
64,680
2,415
64,530
2,415
64,630
2,485
65,130
2,415
64,630
2,335
59,860
67,385
67,385
67,095
66,945
67,045
67,615
67,045
62,195
2 See note 9 on p. A-5.
3 See note 5 on p. A-4.
D E C E M B E R 1973 • FEDERAL RESERVE B A N K S
A 13
STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON NOVEMBER 30, 1973
(In millions of dollars)
Item
Boston
Total
New
York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St.
Louis
Minneapolis
Kansas
City
Dallas
San
Francisco
Assets
Gold certificate account
Special Drawing Rights certificate
account
F.R. notes of other banks
Loans:
Secured by U.S. Govt, and agency
obligations
Other
Acceptances:
11,460
401
3,030
924
891
1,021
570
2,033
508
175
483
447
977
400
1,164
305
23
123
18
93
238
24
23
46
3
33
60
35
36
85
31
22
181
41
70
65
36
15
31
21
7
19
10
15
49
35
14
99
16
49
168
35
842
1,072
36
57
107
35
55
48
66
130
136
106
99
120
26
18
90
10
68
84
27
70
99
427
45
26
Held under repurchase agreements..
Federal agency obligations:
1,810
Bought outright
168
Held under repurchase agreements..
U.S. Govt, securities:
176,393
Bought outright
736
Held under repurchase agreements..
Total loans and securities
81,092
45
26
85
462
168
97
139
134
99
289
64
36
69
78
258
3,584
19,482
736
4,092
5,889
5,644
4,198
12,205
2,690
1,519
2,907
3,302
10,881
3,762 21,061
4,292
6,094
6,044
4,502
12,640
2,862
1,565
3,128
3,477
11,665
359
10
372
27
747
14
892
15
1,061
16
351
14
415
36
546
17
553
12
1,180
8
Cash items in process of collection...
8,144
221
309
42
1,359
10
Other assets:
Denominated in foreign currencies..
All other
4
691
29
2 1
197
35
47
52
35
95
20
19
23
26
113
103,481
4,707 26,013
5,692
7,560
8,030
6,258
16,017
3,822
2,246
4,296
4,644
14,196
63,292
3,162 15,654
3,988
5,086
5,651
3,344
10,592
2,512
1,130
2,465
2,394
7,314
7,404
422
3 136
1,200
66
19
1,689
157
35
1,310
228
20
1,927
105
27
3,768
175
60
858
59
13
606
72
9
1,156
54
16
1,543
150
21
5,546
274
48
Liabilities
Deposits:
Member bank reserves
U.S. Treasurer—General account..
Other:
All other 5
Total deposits
Deferred availability cash items
27,933
1,945
420
926
183
16
672
3
554
18
20
12
11
2
2
11
37
30,970
1,128
8,516
1,303
1,882
1,578
2,071
4,014
931
689
1,228
1,725
5,905
6,194
942
287
44
1,031
271
247
49
340
74
611
68
664
35
936
148
277
33
361
20
482
36
376
40
582
124
4,621 25,472
5,587
7,382
7,908
6,114
15,690
3,753
2,200
4,211
4,535
13,925
214
207
120
42
39
24
74
72
32
47
42
33
62
55
27
131
124
72
28
27
14
20
18
8
35
33
17
46
43
20
105
99
67
4,707 26,013
5,692
7,560
8,030
6,258
16,017
3,822
2,246
4,296
4,644
14,196
4 157
30
55
31
42
95
21
14
25
33
76
7,780
101,398
Other liabilities and accrued dividends
Capital accounts
838
793
452
103,481
Other capital accounts
Total liabilities and capital accounts..
Contingent liability on acceptances
purchased for foreign correspond-
604
34
34
18
25
Federal Reserve Notes—Federal Reserve Agents' Accounts
F.R. notes outstanding (issued to
Bank)
Collateral held against notes outstanding:
Gold certificate account
U.S. Govt, securities
66,229
3,344
16,393
4,073
5,316
5,847
3,596
10,896
2,625
1,186
2,594
2,579
2,485
65,130
175
3,185 16,650
350
3,800
350
5,200
750
5,145
700
3,700 10,400
155
2,520
1,200
2,700
5
2,630
8,000
Total collateral
67,615
3,360
4,150
5,550
5,895
3,700
2,675
1,200
2,700
2,635
8,000
16,650
1
See note 8 on p. A-5.
2 After deducing $3 million participations of other Federal Reserve
Banks.
3 After deducting $284 million participations of other Federal Reserve
Banks.
11,100
4
After deducting $447 million participations of other Federal Reserve
Banks.
5
See note 5 on p. A-4.
A 14
FEDERAL RESERVE B A N K S ; B A N K D E B I T S • D E C E M B E R 1973
MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions of dollars)
Wednesday
Item
End of month
1973
Nov. 28
Nov. 21
Loans—Total
Within 15 days
16 days to 90 days
91 days to 1 year
1,486
1,428
58
1,387
1,333
54
Acceptances—Total
Within 15 days
16 days to 90 days
91 days to 1 year
60
25
35
U.S. Government securities—Total
Within 15 days 1
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
Federal agency obligations—Total
Within 15 days 1
16 days to 90 days
91 days to 1 year
Over 1 year to 5 years
Over 5 years to 10 years
Over 10 years
1973
Nov. 14
Nov. 7
Oct. 31
3,991
3,942
49
839
782
57
2,198
2,147
51
118
87
31
106
76
30
47
11
36
77,577
5,895
19,139
20,359
22,953
7,469
1,762
78,750
7,162
19,070
20,368
22,953
7,435
1,762
77,479
8,086
17,805
18,380
22,148
9,358
1,702
1,889
163
85
280
665
469
227
2,112
326
161
251
702
445
227
1,938
202
161
252
671
425
227
Oct. 31
Nov. 30
1,914
1,849
65
2,198
2,147
51
501
498
3
107
71
36
71
31
40
107
71
36
63
15
48
75,468
3,604
19,455
19,201
22,148
9,358
1,702
78,491
7,389
18,588
19,306
22,148
9,358
1,702
77,129
4,018
20,689
20,238
22,953
7,469
1,762
78,491
7,389
18,588
19,306
22,148
9,358
1,702
69,501
2,332
17,477
17,554
24,484
6,108
1,546
1,739
1,887
148
126
290
671
425
227
1,978
252
85
280
665
469
227
1,887
148
126
290
671
425
227
1,177
14
17
124
622
238
162
164
252
671
425
227
Nov. 30
1972
1
Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.
BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
Debits to demand deposit accounts 1
(billions of dollars)
Turnover of demand deposits
Period
N.Y.
1972—Oct
Nov
Dec
13,896.7
15,154.7
14,783.7
6,148.6
6,979.3
6,604.8
1973—Jan
Feb
Mar
April
May r
June
July
Aug
Sept. r
Oct
15,444.5
16,069.5
15,954.5
15,966.3
16,447.0
16,634.4
17,218.8
17,885.3
17,914.5
18,378.5
6,855.4
7,227.0
6,844.8
6,297.5
7,177.0
7,244.6
7,381.4
7,744.6
8,025.3
8,137.2
226
other
SMSA's
Total
233
SMSA's
N.Y.
6 others
3,225.8
3,411.9
3,495.4
7,748.1
8,175.3
8,178.9
4,522.3
4,763.5
4,683.5
86.7
93.5
90.7
208.3
229.2
215.7
3,631.7
3,804.8
3,868.7
3,852.6
3,913.4
4,046.6
4,277.8
4,315.3
4,192.1
4,413.5
8,589.1
8,842.4
9,109.7
9,038.8
9,270.1
9,409.8
9,837.4
10,140.6
9,889.1
10,241.3
4,957.3
5,037.6
5,241.0
5,186.2
5,356.7
5,363.3
5,559.5
5,825.3
5,697.1
5,827.8
93.8
97.9
97.1
95.7
97.8
99.9
102.6
106.1
107.4
109.4
224.0
238.0
228.3
228.9
235.1
245.0
247.5
252.5
266.4
265.3
6 others
2
1
Excludes interbank and U.S. Govt, demand deposit accounts.
2
Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and
Los Angeles-Long Beach.
Leading SMSA's
Total 232
SMSA's
(excl.
N.Y.)
Leading SMSA's
Total
233
SMSA's
Total 232
SMSA's
(excl.
N.Y.)
226
other
SMSA's
89.2
93.9
95.6
59.2
62.1
61.8
47.8
50.0
48.9
97.9
103.1
104.4
101.8
103.6
107.5
111.5
113.5
111.5
116.3
64.1
66.1
67.8
66.2
67.3
68.7
71.3
73.6
72.4
74.6
51.2
52.0
53.9
52.5
53.6
54.0
55.8
58.4
57.5
58.6
2
NOTE.—Total SMSA's includes some cities and counties not designated
as SMSA's.
For back data see pp. 634-35 of July 1972 BULLETIN.
DECEMBER 1973 • U.S. CURRENCY
A 15
DENOMINATIONS IN CIRCULATION
(In millions of dollars)
Large denomination currency
Coin and small denomination currency
Total
in circulation 1
Total
Coin
$12
$2
$5
$10
$20
Total
$50
$100
$500
1939
1941
1945
1947
7,598
11,160
28.515
28,868
5,553
8,120
20,683
20,020
590
751
1,274
1.404
559
695
1,039
1.048
36
44
73
65
1,019
1,355
2,313
2,110
1,772
2,731
6,782
6,275
1,576
2,545
9,201
9,119
2,048
3,044
7,834
8,850
460
724
2,327
2,548
919
1,433
4,220
5,070
191
261
454
428
425
556
801
782
20
24
7
5
32
46
24
17
1950
1955
195 9
27,741
31,158
32,591
19,305
22,021
23,264
1,554
1,927
2,304
1,113
1,312
1,511
64
75
85
2,049
2,151
2,216
5,998 8,529
6,617 9,940
6,672 10,476
8,438
9,136
9,326
2,422
2,736
2,803
5,043
5,641
5,913
368
307
261
588
438
341
4
3
3
12
12
5
196 0
196 1
196 2
196 3
196 4
32,869
33,918
35,338
37,692
39,619
23,521
24,388
25,356
26,807
28,100
2,427
2,582
2,782
3,030
3.405
1,533
1,588
1,636
1,722
J , 806
88
92
97
103
111
2,246
2,313
2,375
2,469
2,517
6,691
6,878
7,071
7,373
7,543
10,536 9,348
10,935 9,531
11,395 9,983
12,109 10,885
12.717 11,519
2,815
2,869
2,990
3,221
3,381
5,954
6,106
6,448
7,110
7,590
249
242
240
249
248
316
300
293
298
293
3
3
3
3
2
10
10
10
4
4
196 5
196 6
196 7
196 8
196 9
42,056
44,663
47,226
50,961
53,950
29,842
31,695
33,468
36,163
37,917
4,027
4,480
4,918
5,691
6,021
1,908
2,051
2,035
2.049
2,213
127
137
136
136
136
2,618
2,756
2,850
2,993
3,092
7,794
8,070
8,366
8,786
8,989
13,369
14,201
15,162
16,508
17,466
12,214
12,969
13,758
14,798
16,033
3,540 8,135
3,700 8,735
3,915 9,311
4,186 10,068
4,499 11,016
245
241
240
244
234
288
286
285
292
276
3
3
3
3
3
4
4
4
4
5
197 0
197 1
57.093
61,068
39,639
41,831
6,281
6,775
2,310
2,408
136
135
3,161
3,273
9,170 18,581 17,454
9,348 19,893 19,237
4,896 12,084
5,377 13,414
215
203
252
237
3
2
4
4
1972—Oct..
Nov.
Dec.
63,586
65,137
66.516
43,085
44,208
45,105
7,172
7,237
7,287
2,378
2,437
2,523
135
135
135
3,209
3,305
3,449
9,334 20,857 20,500
9,602 21,491 20,928
9,827 21,883 21,411
5,570 14,503
5,714 14,789
5,868 15,118
194
194
193
226
225
225
2
2
2
4
4
4
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
64,312
64,696
65,180
66.094
67,161
67,771
68,223
68,376
68,217
69,043
43,133
43,431
43,699
44,313
45,074
45,428
45,564
45,553
45,398
45,927
7,274
7,290
7,320
7,382
7,446
7,498
7,542
7,577
7,597
7,644
2,380
2,370
2,368
2,406
2.439
2,433
2.440
2,430
2,435
2,480
135
135
135
135
135
135
135
135
135
135
3,218
3,213
3,209
3,234
3,302
3,309
3,301
3,288
3,288
3,333
9,243
9,330
9,352
9,447
9,613
9,648
9,602
9,566
9,505
9,616
5,742
5,755
5,787
5,887
5,974
6,024
6,116
6,149
6,112
6,182
192
192
191
190
189
189
188
188
187
186
224
224
223
222
221
220
219
219
218
217
2
2
2
4
4
4
4
4
4
4
4
4
4
End of period
2
i Outside Treasury and F.R. Banks. Before 1955 details are slightly
overstated because they include small amounts of paper currency held
by the Treasury and the F.R. Banks for which a denominational breakdown is not available.
20,883
21,091
21,314
21,707
22,138
22,405
22,544
22,557
22,437
22.718
21,179
21,266
21,482
21,781
22,088
22,343
22,659
22,822
22,819
23,116
15,013
15,089
15,274
15,476
15,697
15,903
16,130
16,261
16,296
16,524
$1,000 $5,000 $10,000
2
2
2
2
2
2
2
Paper currency only; $1 silver coins reported under coin.
NOTE.—Condensed from Statement of United States Currency and
Coin, issued by the Treasury.
KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION
(Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars)
Currency in circulation
Held in the Treasury
Kind of currency
Gold
Gold certificates
Federal Reserve notes
Treasury currency—Total
Dollars
Fractional Coin
United States notes
In process of retirement
Total—Oct. 31, 1973
Sept. 30, 1973
Oct. 31, 1972
Total, outstanding, As security
against
Treasury
Oct. 31,
1973
gold
cash
certificates
11,567
(11,460)
65,120
8,649
4
(11,460)
767
7,271
323
289
4
85,336
4
83,964
4
78,361
2
11,459
71
2
(11,460)
(10,303)
(10,303)
t Outside Treasury and F.R. Banks. Includes any paper currency held
outside the United States and currency and coin held by banks. Estimated
totals for Wed. dates shown in table on p. A-5.
2
Consists of credits payable in gold certificates, the Gold Certificate
Fund—Board of Governors, FRS.
3 Redeemable from the general fund of the Treasury.
107
152
84
For
F.R.
Banks
and
Agents
342
361
369
11,459
10,302
10,302
Held by
F.R.
Banks
and
Agents
1973
1
1972
Oct.
31
Sept.
30
Oct.
31
4,178
313
60,790
8,253
60,011
8,206
55,802
7,784
34
278
722
6,922
321
288
718
6,879
320
289
656
6,516
320
291
4,492
5,083
4,104
69,043
68,217
63,586
4
Does not include all items shown, as gold certificates are secured by
gold. Duplications are shown in parentheses.
NOTE.—Prepared from Statement of United States Currency and Coin
and other data furnished by the Treasury. For explanation of currency
reserves and security features, see the Circulation Statement or the Aug.
1961 BULLETIN, p. 9 3 6 .
A 16
M O N E Y STOCK • D E C E M B E R 1973
MEASURES OF THE MONEY STOCK
(In billions of dollars)
Seasonally adjusted
N o t seasonally adjusted
Month or week
Mi
Mz
Mi
Mi
Mi
Composition of measures is described in the
NOTE
M%
below.
1969—Dec
1970—Dec
1971—Dec
208.8
221.3
236.0
392.3
425.2
473.8
594.0
641.3
727.7
214.9
227.7
242.8
397.0
430.0
478.7
598.4
645.6
731.9
1972—Nov
Dec
252.7
255.5
519.8
525.1
813.6
822.0
254.3
262.9
518.7
530.3
811.2
826.5
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.f
Nov.?
255.4
256.7
256.6
258.2
260.5
263.2
264.3
263.9
263.4
264.4
266.8
527.9
530.5
532.6
536.2
540.6
545.3
547.6
550.5
552.3
r
557.1
562.5
828.7
834.9
839.7
845.6
852.0
859.4
863.5
866.5
868.8
r
875.4
882.6
262.6
254.0
254.1
259.5
256.0
261.2
263.2
260.7
r
261.9
264.0
268.5
534.1
527.8
531.4
539.5
538.2
544.7
546.6
547.0
r
550.3
r
555.8
561.1
834.6
831.6
838.8
849.8
850.2
859.9
'863.7
r
862.9
r
866.4
r
873.4
879.8
Week ending—
Nov.
7
14
21
28
266.4
267.0
267.6
265.4
561.5
562.9
562.9
561.4
268.0
269.0
268.9
267.5
560.7
561.9
560.8
559.9
Dec.
5
266.6
563.2
271.3
565.1
NOTE.—Composition of the money stock measures is as follows:
Mi: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
A/2: Averages of daily figures for Mi plus savings deposits, time de-
posits open account, and time certificates other than negotiable CD's of
$100,000 of large weekly reporting banks.
M%\ Mi plus the average of the beginning- and end-of-month figures
for deposits of mutual savings banks and for savings capital of savings
and loan associations.
For description and back data, see "Revision of the Money Stock Measures and Member Bank Reserves and Deposits" on pp. 61-79 of the Feb.
1973
BULLETIN.
COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions of dollars)
Not seasonally adjusted
Seasonally adjusted
Commercial banks
Month
or
week
Currency
Demand
deposits
Commercial banks
Time and savings
deposits
CD's 1
Other
Total
Nonbank
thrift
institutions 2
Currency
Demand
deposits
Time and savings
deposits
CD's 1
Other
Total
Nonbank
thrift
institutions 2
U.S.
Govt,
deposits 3
1969—Dec
1970—Dec
1971—Dec
46.1
49.1
52.6
162.7
172.2
183.4
10.9
25.3
33.0
183.5
203.9
237.9
194.4
229.2
270.9
201.7
216.1
253.8
46.9
50.0
53.5
167.9
177.8
189.2
11.1
25.8
33.8
182.1
202.3
236.0
193.2
228.1
269.8
201.4
215.6
253.2
5.6
7.3
6.9
1972—Nov
Dec
56.2
56.8
196.5
198.7
41.2
43.2
267.1
269.6
308.4
312.8
293.8
296.9
56.7
57.8
197.7
205.0
43.3
44.3
264.4
267.5
307.7
311.7
292.5
296.1
6.2
7.3
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
57.0
57.5
57.9
58.7
59.0
59.4
59.5
59.7
60.1
60.3
60.8
198.4
199.3
198.7
199.5
201.6
203.9
204.9
204.2
203.3
r
204.0
205.9
44.4
48.8
54.9
58.7
61.7
62.0
64.5
67.0
66.8
63.4
61.1
272.5
273.8
276.0
278.0
280.1
282.0
283.3
286.6
r
288.9
292.8
295.8
316.9
322.6
330.9
336.7
341.8
344.1
347.7
353.6
355.6
r
356.1
356.8
300.8
304.4
307.0
309.4
311.4
r
314.2
r
315.9
315.9
316.6
'318.2
320.0
56.7
56.7
57.3
58.2
58.7
59.4
59.9
60.0
r
60.1
60.3
61.4
205.9
197.3
196.7
201.3
197.3
201.8
203.2
200.8
201.8
r
203.6
207.2
45.1
48.6
54.0
56.1
58.8
59.3
62.3
68.4
68.8
r
66.3
64.1
271.5
273.8
277.3
280.0
282.2
283.4
283.5
286.3
288.4
'291.8
292.6
316.6
322.5
331.4
336.1
340.9
342.7
345.8
354.7
357.2
'358.2
356.7
300.5
303.8
307.4
310.3
312.0
315.3
317.0
315.9
316.1
317.6
318.7
8.0
9.6
10.1
8.2
8.4
6.9
6.3
4.0
5.1
5.8
4.2
Oct.P
NOV.P
Week ending—
Nov.
7
14
21
28
60.6
60.8
61.1
60.8
205.9
206.2
206.5
204.6
61.7
60.8
60.8
61.1
295.1
295.9
295.3
296.0
356.8
356.7
356.2
357.1
61.1
61.4
61.6
61.3
206.9
207.6
207.2
206.2
64.5
63.9
64.2
64.1
292.7
292.9
291.9
292.5
357.2
356.7
356.1
356.6
5.5
3.5
3.8
4.0
Dec.
5
60.7
205.8
61.1
296.6
357.7
61.7
209.2
63.5
293.8
257.3
4.2
1 Negotiable time certificates of deposit issued in denominations of
$100,000 or more by large weekly reporting commercial banks.
2
Average of the beginning and end-of-month figures for deposits of
mutual savings banks and savings capital at savings and loan associations.
^ At all commercial banks.
See also
NOTE
above,
D E C E M B E R 1973 • B A N K RESERVES; B A N K C R E D I T
A 17
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions of dollars)
Deposits subject to reserve requirements 3
Member bank reserves, S.A.1
N.S.A.
S.A.
Period
Nonborrowed
Total
Required
Available 2
Total
Total member
bank deposits
plus nondeposit
items 4
Demand
Time
and
savings
Private
U.S.
Govt.
Total
Demand
Time
and
savings
Private
U.S.
Govt.
S.A.
N.S.A.
1969—Dec....
1970—Dec
1971—Dec
27.96
29.12
31.21
26.70
28.73
31.06
27.73
28.91
31.06
25.34
26.98
28.91
287.7
321.3
360.3
150.4
178.8
210.4
131.9
136.0
143.8
5.3
6.5
6.1
291.2
325.2
364.6
149.7
178.1
209.7
136.9
141.1
149.2
4.6
6.0
5.7
307.7
332.9
364.3
311.1
336.8
368.7
1972—Nov....
Dec
31.88
31.31
31.30
30.06
31.54
31.07
29.50
28.86
397.6
402.0
237.9
241.2
152.8
154.3
6.9
6.5
396.4
406.8
237.6
240.7
153.7
160.1
5.1
6.1
401.9
406.4
400.7
411.2
1973—Jan
Feb ,
Mar....
Apr
May
June
July....
Aug.. ..
Sept
Oct
Nov.*..
32.24
31.65
32.00
32.33
32.45
32.46
33.57
33.90
34.15
r
34.97
34.78
30.85
29.79
29.53
30.17
30.20
30.80
32.33
32.00
32.60
r
33.55
33.51
31.98
31.44
31.77
32.08
32.28
32.21
33.30
33.74
33.96
r
34.71
34.58
29.41
29.30
29.62
29.86
30.10
30.51
31.32
31.96
32.31
r
32.76
32.54
404.7
410.2
416.7
421.1
425.1
428.9
431.2
436.7
438.6
439.7
439.6
243.7
248.5
256.0
261.8
265.8
267.4
270.4
275.6
277.3
'276.7
276.2
153.9
154.5
153.2
153.4
154.7
156.4
157.3
156.9
156.2
156.4
157.5
7.1
7.2
7.5
5.8
4.6
5.1
3.4
4.2
5.1
6.6
6.0
410.4
409.0
416.3
422.3
423.0
426.3
429.9
433.7
437.7
r
439.7
438.3
243.8
248.5
256.2
260.5
264.5
265.9
268.5
276.6
279.0
r
278.8
276.6
160.0
152.4
151.6
154.9
151.4
154.8
156.2
154.0
154.7
156.1
158.4
6.6
8.1
8.5
6.8
7.0
5.7
5.1
3.1
4.1
4.8
3.3
409.2
414.8
421.6
426.2
430.5
434.5
437.7
443.9
445.9
r
446.5
446.7
414.9
413.5
421.2
427.5
428,4
431.9
436.4
440.8
445.0
r
446.5
445.4
1
Averages of daily figures. Member bank reserve series reflects actual
reserve requirement percentages with no adjustment to eliminate the
effect of changes in Regulations D and M. Required reserves were increased by $660 million effective Apr. 16, 1969, and $400 million effective
Oct. 16, 1969; were reduced by $500 million (net) effective Oct. 1, 1970.
Required reserves were reduced by approximately $2.5 billion, effective
Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300
million effective Nov. 22.
2 Reserves available to support private nonbank deposits are defined
as (1) required reserves for (a) private demand deposits, (b) total time
and savings deposits, and (c) nondeposit sources subject to reserve requirements, and (2) excess reserves. This series excludes required reserves
for net interbank and U.S. Govt, demand deposits.
3
Averages of daily figures. Deposits subject to reserve requirements
include total time and savings deposits and net demand deposits as defined
by Regulation D. Private demand deposits include all demand deposits
except those due to the U.S. Govt., less cash items in process of collection
and4 demand balances due from domestic commercial banks.
Total member bank deposits subject to reserve requirements, plus
Euro-dollar borrowings, bank-related commercial paper, and certain
other nondeposit items. This series for deposits is referred to as "the adjusted bank credit proxy."
NOTE.—For description of revised series and for back data, see article
"Revision of the Money Stock Measures and Member Bank Reserves and
Deposits" on pp. 61-79 of the Feb. 1973 B U L L E T I N .
Due to changes in Regulations M and D, member bank reserves include
reserves held against nondeposit funds beginning Oct. 16, 1969. Back data
may be obtained from the Banking Section, Division of Research and
Statistics, Board of Governors of the Federal Reserve System, Washington,
D.C. 20551.
LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS
(In billions of dollars)
Not seasonally adjusted
Seasonally adjusted
Securities
Loans
Total
loans
and
invest-1
ments
Date
Total 1
Plus
loans
sold2
Commercial
and industrial 3
Total
Plus
loans
sold 2
U.S.
Treasury
Other 4
Loans
Total
loans
and
invest-1
ments
Total 1
Plus
loans
sold 2
Securities
Commercial
and industrial3
Total
Plus
loans2
sold
U.S.
Treasury
Other 4
390.2
401.7
435.5
484.8
258.2
279.1
291.7
320.3
283.0
294.7
323.1
95.9
105.7
110.0
115.9
108.3
112.1
117.5
60.7
51.5
57.9
60.1
71.3
71.1
85.9
104.4
400.4
412.1
446.8
497.9
264.4
286.1
299.0
328.3
290.0
301.9
331.1
98.4
108.4
112.5
118.5
111.0
114.6
120.2
64.5
54.7
61.7
64.9
71.5
71.3
86.1
104.7
1972—Nov. 29
Dec. 31
549.9
556.4
372.9
377.8
375.4
380.4
128.2
129.7
129.8
131.4
60.9
61.9
116.1
116.7
549.9
571.4
371.8
387.3
374.3
389.9
127.6
132.7
129.2
134.4
63.2
67.0
114.9
117.1
1973—Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
564.7
575.4
583.6
589.6
597.7
602.0
608.2
616.0
618.2
621.7
624.6
385.8
397.2
405.8
411.1
417.4
420.3
427.3
435.3
438.1
440.0
443.6
388.4
400.3
409.0
414.7
421.1
423.8
431.3
440.0
442.7
444.6
447.9
133.3
138.1
141.8
143.9
146.8
148.2
151.4
153.6
154.0
154.0
155.5
135.0
140.2
143.8
146.2
149.0
150.4
154.0
156.5
156.9
156.9
158.2
61.8
60.6
60.4
61.0
61.0
61.6
59.6
57.7
56.3
54.9
54.5
117.1
117.6
117.4
117.5
119.3
120.1
121.3
123.0
123.8
126.8
126.5
565.6
571.1
580.6
587.3
594.8
605.6
606.8
612.0
617.9
621.4
624.5
383.5
392.6
401.7
408.3
416.6
426.6
429.1
434.6
439.1
439.9
442.1
386.1
395.7
404.8
411.9
420.3
430.1
433.1
439.3
443.8
444.5
446.4
132.0
136.6
141.7
144.4
146.4
150.4
151.8
152.2
154.1
153.3
154.6
133.7
143.7
146.7
148.6
152.6
154.4
155.1
157.0
156.2
157.3
65.6
61.6
61.2
60.4
58.3
57.9
56.4
54.7
54.8
55.6
57.3
116.5
116.8
117.7
118.6
119.9
121.1
121.4
122.8
123.9
125.9
125.1
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
31
315....
31
31
31
28
28
25
30
30....
25*....
29V
26P
31». . .
28*...
1
Adjusted to exclude domestic commercial interbank loans. See also
note 3.
2 Loans sold are those sold outright by commercial banks to own subsidiaries, foreign branches, holding companies, and other affiliates.
3 Beginning June 30, 1972, commercial and industrial loans were reduced by about $400 million as a result of loan reclassifications at one
large bank.
4
Beginning June 30, 1971, Farmers Home Administration insured notes
totaling approximately $700 million are included in "Other securities"
rather than in "Loans."
5 Beginning June 30, 1969, data revised to include all bank-premises
subsidiaries and other significant majority-owned domestic subsidiaries;
earlier data include commercial banks only. Also, loans and investments
are now reported gross, without valuation reserves deducted, rather than
138.7
net of valuation reserves as was done previously. For a description of the
revision, see Aug. 1969 BULLETIN, pp. 642-46. Data shown in above table
have been revised to include valuation reserves.
NOTE.—Total loans and investments: For monthly data, Jan. 1959June 1973, see Nov. 1973 BULLETIN, pp. A-96-A-97, and for 1948-58,
Aug. 1968 BULLETIN, pp. A-94-A-97. For a description of the current
seasonally adjusted series see the Nov. 1973 BULLETIN, pp. 831-32, and
the Dec. 1971 BULLETIN, pp. 971-73. Commercial and industrial loans:
For monthly data, Jan. 1959-June 1973, see Nov. 1973 BULLETIN, pp.
A-96-A-98; for description see July 1972 BULLETIN, p. 683. Data are for
last Wednesday of month except for June 30 and Dec. 31; data are partly
or wholly estimated except when June 30 and Dec. 31 are call dates.
A 18
COMMERCIAL BANKS • DECEMBER 1973
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions of dollars)
Deposits
Loans and investments
Securities
Class of bank
and date
Total
All commercial banks:
1941--Dec. 3 1 . . . 50,746
1945--Dec. 3 1 . . . 124,019
1947--Dec. 31 6. 116,284
1966--Dec.
1967--Dec.
1968--Dec.
1969--Dec.
1970--Dec.
1971--Dec.
31...
30...
31 . . .
31 7.
31...
31...
322,661
359,903
401,262
421,597
461,194
516,564
Loans
l
U.S.
Treasury
21,714 21,808
26,083 90,606
38,057 69,221
217,726
235,954
265,259
295,547
313,334
346,930
56,163
62,473
64,466
54,709
61,742
64,930
Cash
assets 3
Other
2
Total
assets—
Total
liabilities
and
capital
accounts 4
Interbank3
Total 3
Other
Demand
Demand
Time
10,982
7,225 26,551 79,104 71,283
14,065
7,331 34,806 160,312 150,227
240
9,006 37,502 155,377 144,103 12,792
48,772
61,477
71,537
71,341
86,118
104,704
69,119
77,928
83,752
89,984
93,643
99,832
403,368
451,012
500,657
530,665
576,242
640,255
352,287
395,008
434,023
435,577
480,940
537,946
Total
Bor-, capital
rowacings counts
19,770
21,883
24,747
27,174
30,608
32,205
U.S.
Govt.
Time 5
Other
44,349
105,921
,343 94,367
967 4,992
1,314 5,234
5,010
1,21
735 5,054
1,975 7,938
2,908 10,169
167,751
184,066
199,901
208,870
209,335
220,375
15,952
30,241
35,360
23
219
65
158,806 4,859
182,511 5,777
203,154 8,899
193,744 18,360
231,084 19,375
272,289 25,912
1972--Oct. 2 5 . . . 561,280 386,190 60,930 114,160 102,830 691,880 567,620 29,040 3,760 7,520 221,440 305,860 39,680
Nov. 2 9 . . . 574,230 396,160 63,210 114,860 91,460 694,050 572,160 27,060 3,920 7,760 224,990 308,430 38,350
Dec. 3 1 . . . 598,808 414,696 67,028 117,084 113,128 739,033 616,037 33,854 4,194 10,875 252,223 314,891 38,083
1973--Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
28...
28.. .
25...
30...
30...
25*..
29P.P .
26 ..
3If..
28P..
599,970
608,320
616,480
622,340
635,756
634,220
640,100
645,150
652,330
656,700
Members of
F.R. System:
1941--Dec. 31 . . . 43,521
1945--Dec. 3 1 . . . 107,183
1947--Dec. 3 1 . . . 97,846
1966--Dec.
1967--Dec.
1968--Dec.
1969--Dec.
1970--Dec.
1971--Dec.
31...
30.. .
31...
31 7.
31...
31...
263,687
293,120
325,086
336,738
365,940
405,087
421,500
429,400
437,520
444,120
456,780
456,480
462,630
466,420
470,780
474,300
61,620 116,850 99,590
61,180 117,740 90,980
60,400 118,560 91,580
58,330 119,890 95,410
57,877 121,099 103,608
56,360 121,380 95, —
54,720 122,750 92,010
54,800 123,930 100,030
55,640 125,910 111,720
57,300 125,300 104,140
18,021 19,539
22,775 78,338
32,628 57,914
182,802
196,849
220,285
242,119
253,936
277,717
41,924
46,956
47,881
39,833
45,399
47,633
729,670
729,250
738,740
749,470
769,908
761,870
765,200
778,070
798,550
794,420
598,520
596.690
604,570
611,920
629,215
618,670
618,440
628,700
643,790
635,940
29,530
25,960
26,220
27,770
31,047
28,710
26,500
27,720
32,830
30,130
5,961 23,113 68,121 61,717 10,385
6,070 29,845 138,304 129,670 13,576
7,304 32,845 132,060 122,528 12,353
38,960
49,315
56,920
54,785
66,604
79,738
60,738
68,946
73,756
79,034
81,500
86,189
334,559
373,584
412,541
432,270
465,644
511,353
291,063
326,033
355,414
349,883
384,596
425,380
18,788
20,811
23,519
25,841
29,142
30,612
4,170
4,530
4,880
5,250
5,590
5,830
6,620
7,190
6,820
7,010
28...
28...
25...
30. . .
30...
25...
29...
26...
31 P..
2SP.
.
465,024
470,997
476,739
480,394
490,533
489,240
494,200
498,322
504,120
507,176
Large member banks:
New York City: * * 10
1941--Dec. 3 1 . . . 12,896
1945--Dec. 3 1 . . . 26,143
1947--Dec. 3 1 . . . 20,393
334,601
340,665
346,865
351,223
360,908
360,813
365,951
368,842
371,866
374,148
227,190
220,290
225,170
229,050
236,953
228,310
224,450
8,210 227,880
5,680 240,390
4,350 237,650
140 1,709
64 22,179
50 1,176
794
1,169
1,061
609
1,733
2,549
1972—Oct. 2 5 . . . 435,460 305,996 43,691 85,773 88,220 546,642 442,792 27,528 3,360
Nov. 2 9 . . . 446,621 314,463 45,799 86,359 78,554 548,333 446,441 25,759 3,520
Dec. 31... 465,788 329,548 48,715 87,524 96,566 585,125 482,124 31,958 3,561
1973--Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
11,370
11,390
10,910
5,810
10,434
6,750
3,460
4,432
4,631
4,309
4,114
6,460
8,427
37,136
69,640
80,609
138,218
151,980
163,920
169,750
168,032
174,385
326,260
334,520
337,390
344,040
345,191
349,070
357,410
357,700
358,070
356,800
45,480
45,420
45,830
47,360
49,299
52,580
53,150
56,180
60,220
62,400
12,347
24,210
28,340
4
208
54
128,831 4,618
147,442 5,370
162,605 8,458
149,569 17,395
179,229 18,578
209,406 25,046
6,172 172,615 233,117 37,857
6,463 175,739 234,960 36,480
9,024 197,817 239,763 36,357
43,698
43,259
42,517
41,030
41,080
39,331
38,233
38,372
39,375
40,752
86,725
87,073
87,357
88,141
88,545
89,096
90,016
91,108
92,879
92,276
85,364
77,719
78,219
81,169
88,227
82,091
78,475
85,802
96,251
89,652
575,322
573,564
580,412
587,722
604,414
597,607
600,202
611,359
628,710
624,258
465,495
462,997
468,385
473,623
486,770
478,417
478,273
486,975
499,093
491,405
28,037
24,505
24,744
26,139
29,311
27,121
24,972
26,182
31,142
28,522
3,537
3,895
4,242
4,621
4,879
5,121
5,911
6,480
6,112
6,298
9,364
9,407
9,167
4,511
8,167
5,423
2,701
6,740
4,601
3,359
176,525
170,540
173,671
176,766
182,439
175,351
172,082
175,016
185,308
182,931
248,032
254,650
256,561
261,586
261,975
265,401
272,607
272,557
271,930
270,295
42,912
42,642
43,076
44,214
46,529
48,761
49,283
52,485
56,832
58,865
4,072 7,265
7,334 17,574
7,179 11,972
1,559
1,235
1,242
6,637
6,439
7,261
19,862
32,887
27,982
17,932
30,121
25,216
4,202
4,640
4,453
17
12
866
6,940
267
12,051
17,287
19,040
807
1,236
1,445
195
30
5,674
7,055
8,094
6,980
9,177
9,031
14,869
18,797
19,948
22,349
21,715
22,663
1,016
1,084
17,449
20,062
20,076
14,944
20,448
24,256
1,874
1,880
2,733
4,405
4,500
5,195
31...
30...
31...
31 7.
31...
31...
46,536
52,141
57,047
60,333
62,347
63,342
35,941
39,059
42,968
48,305
47,161
48,714
4,920
6,027
5,984
5,048
6,009
5,597
64,424
74,609
81,364
87,753
89,384
91,461
467
51,837 6,370
741
60,407 7,238
622
63,900 8,964
268
62,381 10,349
956
67,186 12,508
71,723 13,825 1,186
694
1,039
1,513
26,535
31,282
33,351
36,126
32,235
30,943
1972--Oct. 2 5 . . .
Nov. 2 9 . . .
Dec. 3 1 . . .
69,136
71,707
75,034
53,835
55,533
58,713
5,045 10,256 21,261 96,657
5,712 10,462 21,556 98,990
5,696 10,625 26,416 107,603
72,568 12,386 1,530
74,550 12,639 1,752
82,446 15,094 1,833
1,097
1,032
1,418
29,046
30,710
35,373
28,509
28,417
28,728
9,170
9,335
9,502
1973--Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
75,727
76,368
76,834
78,078
79,212
79,869
80,338
81,900
83,338
84,529
61,629
62,584
63,395
64,505
65,428
66,117
66,610
67,694
68,229
69,048
4,463 9,635 23,059 105,571
4,498 9,286 20,133 103,402
4,254 9,185 19,710 103,622
4,424 9,149 19,587 104,550
4,661 9,124 24,518 111,028
4,047 9,705 23,544 110,392
4,095 9,633 20,095 108,141
4,075 10,131 22,531 111,675
4,828 10,281 28,643 119,283
5,035 10,446 24,917 116,040
79,567
77,435
77,295
77,980
82,718
81,473
78,925
1,708
1,951
2,229
2,491
2,773
2,969
3,558
4,019
3,807
4,087
1,506
1,789
1,732
521
1,115
769
310
1,073
642
373
30,533
29,032
29,068
30,035
30,607
30,164
28,185
29,656
32,901
31,776
31,780
32,919
32,331
33,153
32,883
33,784
34,780
34,199
33,872
33,724
10,321
9,938
9,891
10,496
11,597
12,857
12,368
13,729
15,170
14,882
1966-- D e c .
1967--Dec.
1968--Dec.
1969--Dec.
1970--Dec.
1971--Dec.
28...
28...
25...
30. . .
30...
25...
29...
26...
31...
28...
For notes see p. A-21.
14,040
11,744
11,935
11,780
15,340
13,787
12,092
82,016 13,069
87,935 16,713
84,824 14,864
888
DECEMBER 1973 • COMMERCIAL BANKS
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Class of bank
and date
Large member banks (cont.)
City of Chicago: 8,9
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
Total
2,760
5,931
5,088
Loans
l
Cash
assets 3
U.S.
Treasury
Other
Total
assets—
Total
liabilities
and
capital
accounts 4
Interbank 3
Demand
1,430
4,213
2,890
376
385
397
1,566
1,489
1,739
4,363
7,459
6,866
4,057
7,046
6,402
1,035
1,312
1,217
8,756
9,223
1,502
1,947
2,125
2,030
2,427
3,067
2,638
2,947
3,008
2,802
3,074
3,011
14,935
16,296
18,099
17,927
19,892
21,214
12,673
13,985
14,526
13,264
15,041
16,651
1.433
1.434
1,535
1,677
1,930
1,693
Total
capital
accounts
Borrowings
Demand
Total 3
954
1,333
1,801
Other
Time*
Time
U.S.
Govt.
Other
127
1,552
72
2,419
3,462
4,201
476
719
913
25
21
21
15
49
168
310
267
257
175
282
364
6,008
6,250
6,542
6,770
6,663
6,896
4,898
6,013
6,171
4,626
6,117
7,530
484
383
682
1,290
1,851
1,935
11,802
12.744
14,274
14,365
15.745
17,133
10,771
11,214
12,285
1,545
1,574
1,863
1,564
2,105
1,782
1972—Oct. 25.
Nov. 29.
Dec. 31.
19,530
20,370
21,362
15,021
15,379
16,294
1,435
1,597
1,873
3,074
3,394
3,195
3,119
2,659
3,580
23,714
24,042
26,009
17,738
18,021
19,851
1,455
1,262
1,615
196
217
160
192
213
509
6,264 9,631
6,565 9 , 7 6 4
7,387 10,179
2,945
3,137
3,008
1973—Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
21,983
22,660
22,800
23,777
24,566
25,221
25,400
25,948
25,489
26,278
17,544
17,980
18,253
18,956
19,645
20,580
20,676
20,717
20,022
21,117
1,384
1,470
1,414
1,564
1,715
1,364
1,322
1,683
1,621
1,504
3,055
3,210
3,133
3,257
3,205
3,277
3,402
3,548
3,846
3,657
3,513
3,092
3,277
3,209
3,501
3,759
3,569
3,853
4,146
3,794
26,575
26,821
27,170
28,134
29,307
30,199
30,358
31,299
31,015
31,441
19,429
19,854
20,020
21,088
21,896
21,627
22,272
22,138
21,837
21,577
1,433
1,326
1,304
1,501
1,323
1,638
1,355
1,525
1,481
1,505
224
266
333
411
392
389
499
504
517
459
442
461
426
154
299
226
86
303
194
115
6,778
6,439
6,639
6,882
7,372
6,488
6,725
6,480
6,863
6,942
10,552
11,362
11,318
12,140
12,511
12,886
13,607
13,326
12,782
12,556
4,075
3,910
3,971
3,954
4,146
4,922
4,647
5,814
5,895
6,314
15,347
40,108
36,040
7,105 6,467
8,514 29,552
13,449 20,196
1,776 8,518
2,042 11,286
2,396 13,066
24,430
51,898
49,659
22,313
49,085
46,467
4,356
6,418
5,627
491 12,557 4,806
104
30 8,221 24,655 9 , 7 6 0
405 28,990 11,423
22
1
123,863
136,626
151,957
157,512
171,733
190,880
108,804
120,485
132,305
126,232
140,518
155,226
8,593
9,374
10,181
10,663
11,317
11,241
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
31...
30...
31...
31
31...
31...
28.
28.
25.
30.
30.
25.
29.
26.
31.
28.
Other large member: 8 , 9
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
31...
30...
31...
31 7.
31...
31...
10,286
95,831 69,464
105,724 73,571
119,006 83,634
121,324 90,896
133,718 96,158
149,401 106,361
13,040
14,667
15,036
11,944
14,700
15,912
13,326
17,487
20,337
18,484
22,860
27,129
24,228
26,867
28,136
29,954
31,263
33,732
233
310
307
242
592
933
1,633
1,715
1,884
1,575
2,547
3,557
49,004
53,288
57,449
58,923
59,328
62,474
49,341 1,952
55,798 2,555
62,484 4,239
54,829 9,881
66,734 10.391
77,020 14,799
1972—Oct. 25.
Nov. 29.
Dec. 31.
157,630 115,642 13,699 28,289 35,635 201,551 158,214 10,202 1,239 2,374 61,147 83,252 20,500
163,011 119,961 14,734 28,316 29,350 200,829 159,305 8,844 1,156 2,828 62,229 84,248 18,629
171,549 126,661 16,316 28,572 36,729 217,170 173,913 11,133 1,173 3,860 71,376 86,372 19.392
1973—Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
169,71
172,604
175,754
175,455
180,663
178,493
181,404
182,083
185,864
185,094
126,893
129,983
133,253
133,519
138,452
137,056
140,151
140,637
142,511
141,112
13,957
13,615
13,414
12,547
13,066
11,982
11,572
11,443
12,053
12,966
28,861
29,006
29,087
29,389
29,144
29,455
29,681
30,003
31,300
31,016
1,210 3,942 62,627 88,006 22,434
32,497
29,626
30,111
31,779
31,899
28,878
29,551
33,048
35,331
34,360
211,396
211,390
215,262
217,001
222,344
217,220
221,043
225,139
231,737
229,828
165,150
165,247
168,360
170,123
173,183
169,837
171,725
174,901
178,295
174,434
9,365
8,372
8,470
9,540
9,177
8,518
8,467
8,494
9,583
8,939
2,250 6,402
2,408 10,632
3,268 10,778
19,466
46,059
47,553
17,415
43,418
44,443
792
1,207
1,056
131,338
146,052
161,122
169,078
184,635
207,798
117,749
131,156
144,682
148,007
161,850
181,780
2,392
2,766
2,839
3,152
3,387
3,853
69 1,474 56,672
96 1,564 61,161
1,281 66,578
84 1,671 67,930
135 2,592 69,806
263 2,993 74,072
57,144
65,569
73,873
75,170
85,930
100,600
1,836
3,118
1972- -Oct. 25.
Nov. 29.
Dec. 31.
189,164 121,498 23,512 44,154 28,205 224,720 194,272
191,533 123,590 23,756 44,187 24,989 224,472 194,565
197,843 127,881 24,830 45,132 29,841 234,342 205,914
3,485
3,014
4,116
395 2,509 76,158 11,725
395 2,390 76,235 112,531
395 3,238 83,681 '14,483
5,242
5,379
4,455
1973—Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
197,603
199,365
201,351
203,084
206,092
205,657
207,058
208,391
209,429
211,275
3,199
3,063
3,035
3,318
3,471
3,178
3,058
3,094
3,365
3,214
395
395
395
395
342
395
395
395
342
342
28.
28.
25.
30..
30.
25.
29.
26.
31.
28.
AH other member: 8 , 9 , 1 0
1941—Dec. 31
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.
1971—Dec.
31..
30..
31..
31?.
31..
31..
28.
28.
25.
30..
30.
25
29
26
31
28*
For notes see p. A-21.
12,518
35,002
36,324
5,890 4,377
5,596 26,999
10,199 22,857
109,518 68,641
74,995
122,51
134,759 83,397
140,715 92,147
154,130 99,404
175,21* 110,357
128,535
130,118
131,964
134,243
137,383
137,060
138,514
139,794
141,104
142,871
22,419
24,689
24,998
21,278
22,586
24,343
23,894
23,676
23,435
22,495
21,638
21,938
21,244
21,171
20,873
21,247
18,458
22,826
26,364
27,291
32,140
40,511
45,174
45,571
45,952
46,346
47,072
46,659
47,300
47,426
47,452
47,157
19,004
20,334
22,664
23,928
25,448
26,783
26,295
24,868
25,121
26,594
28,309
25,910
25,260
26,370
28,131
26,581
231,780
231,951
234,358
238,037
241,736
239,796
240,660
243,246
246,675
246,949
201,349
200,461
202,710
204,432
208,974
205,480
205,351
207,920
221,026
210,570
1,283
1,285
1,324
1,371
1,368
1,459
1,562
1,446
1,410
3,761
4,069
1,653
2,988
2,223
1,051
2,930
1,972
1,223
60,660
61,487
62,744
64,875
61,418
60,607
61,459
65,364
64,717
91,171
93,049
94,862
94,771
96,310
100,141
100,456
99,930
98,145
22,175
22,606
22,183
24,032
22,492
23,670
24,730
27,537
29,092
30
225 10,109 6,258
17 5,465 24,235 12,494
17
432 28,378 14,560
4
11
23
11
3,474
3,396
2,940
2,183
3,766
2,205
1,254
2,434
1,793
1,648
76,587 117,694
74,409 119,198
76,477 119,863
77,105 121,431
79,585 121,810
77,281 122,421
76,565 124,079
77,421 124,576
80,180 125,346
79j496|125,870
308
552
804
1,820
6,082
6,619
6,608
7,581
6,753
8,490
8,598
8,212
8,230
8,577
A 19
A 20
C O M M E R C I A L B A N K S • D E C E M B E R 1973
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Classification by
FRS membership
and F D I C
insurance
Securities
Total
Loans
U.S.
Treasury
Insured banks:
Total:
1941 _ D e c . 31.
1945—Dec. 31.
1947—Dec. 31.
49,290
121,809
114,274
21,259 21,046
25,765 88,912
37,583 67,941
Other
2
Total
assets—
Total
Cash
liaassets 3 bilities
and
capital
accounts 4
Interbank 3
Other
Borrowings
Demand
Total 3
Demand
Time
5
Time
6,984 25,788 76,820 69,411
10,<654
7,131 34,292 157,544 147,775
13,1883
8,750 36,926 152,733 141,851 12,615
Total
capital
accounts
54
U.S.
Govt.
Other
1,762
23,740
1,325
41,298
80,276
92,975
15,699
29,876
34,882
10
215
61
Number
of
banks
6,844 13,426
8,671 13,297
9 , 7 3 4 13,398
1963—Dec. 20.
1964—Dec. 31.
1965—Dec. 31.
252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077
275,053 174.234 62,499 38,320 59,91 343,876 305,113 17,664
303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149
443
733
923
6,712 140,702 110,723
6,487 154,043 126,185
5,508 159,659 146,084
3,571 25.277 13,284
2 , 5 8 0 27,377 13,486
4,325 29,827 13,540
1966—Dec. 31.
1967—Dec. 30.
1968—Dec. 31.
321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497
358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598
399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427
881
1,258
1,155
4,975 166,689 159,396
5,219 182,984 183,060
5,000 198,535 203,602
4 , 7 1 7 31,609 13,533
5,531 33,916 13,510
8,675 36,530 13,481
1969—Dec. 317 • 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858
695
5,038 207,311 194,237 18,024 39,450 13,464
1971—Dec. 3 1 . . 514,097 345,386 64,691 104,020 98,281 635,805 535,703 31,824
2,792 10,150 219,102 271,835 25,629 46,731 13,602
594,502 411,525 66,679 116,298111,333 732,519 612,822 33,366
178,617
| 89,402 724,105 594,805 25,721
606,852 428.235
762,250 625,316 30,559
630,379 452,587
4,113 10,820 250,693 313,830 37,556 52,166 13,721
4,339 11,322 219,601 333,821 43,921 53,529 13,766
5,446 10,408 235,174 343,729 48,413 55,240 13,842
1972—Dec. 31.,
1973—Mar. 28..
June 30.,
National member:
1941—Dec. 31.
1945—Dec. 31.,
1947—Dec. 31.,
35
1,088
14,013
795
23,262
45,473
53,541
8,322
16,224
19,278
137,447 84,845 33,384 19,218' 28,635 170,233 150,823 8,863
151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521
176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064
146
211
458
3,691
3,604
3,284
76,836
84,534
92,533
1966—Dec. 31., 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588
1967—Dec. 30., 208,971 139,315 34,308 35,348 46,634 263,375 231,374 13,877
1968—Dec. 31., 236,130 159,257 35,300 41,572 50,953j 296,594 257,884 15,117
437
652
657
1963—Dec. 20.,
1964—Dec. 31.,
1965—Dec. 31.,
27,571
69,312
65,280
11,725 12,039
13,925 51,250
21,428 38,674
3,806| 14,977;
4,137i 20,144
5,178 22,024!
43,433
90,220
88,182
39,458
84,939
82,023
6, 786
9,:229
8,375
4
78
45
3,640
4,644
5,409
5,117
5,017
5,005
61,288
70,746
85,522
1,704 13,548
1,109 15,048
2,627 17,434
4,615
4,773
4,815
3,035 96,755 9 3 , 6 4 2
3,142 106,019 107,684
3,090 116,422 122,597
3,120 18,459
3,478 19,730
5,923 21,524
4,799
4,758
4,716
1969—Dec. 31?. 247,526 177,435 29,576 40,514 54,721j 313,927 256,314 16,299
361
3,049 121,719 114,885 12,279 23,248
4,668
1971—Dec. 31..
302,756 206,758 36,386 59,612 59,191;; 376,318 314,085 17,511
1,828
6,014 128,441 160,291 18,169 27,065
4,599
1972—Dec. 31..
1973—Mar. 28..
June 30.,
350,743 247,041 37,185 66,516 67,390 434,810 359,319 19,096
53,789 426,035 345,341 14,134
354,999 254,447
100 552
369,856 270,188 31,651 68,018 61,336,, 449,772 364,129 16,640
2,155
2,285
2,874
6,646 146,800 184,622 26,706 30,342
6,866 127,001 195,056 30,336 30,924
6,181 137,116 201,318 33,804 31,867
4,612
4,607
4,629
State member:
1941—Dec. 31.
1945—Dec. 31.
1947—Dec. 31.
15,950
37,871
32,566
6,295 7,500
8,850 27,089
11,200 19,240
24,688
48,084
43,879
22,259
44,730
40,505
3, 739
4,-411
3,978
1963—Dec. 20.
1964—Dec. 31.
1965—Dec. 31.
72,680
77,091
74,972
46,866 15,958 9,855 15,76o' 91,235
51,002 15,312 10,777 18,673 98,852
51,262 12,645 11,065 15,934jj 93,640
78,553
86,108
81,657
1966—Dec. 31.
1967—Dec. 30.
1968—Dec. 31.
77,377
85,128
89,894
54,560 11,569 11,247 19,049,1 99,504
111,188
58,513 12,649 13,966
j 116,885
61,965 12,581 15,348
1969—Dec. 317
90,088
65,560 10,257 14,271 24,313 | 119,219
1971—Dec. 3 1 . . 102,813
2,155 8,145
1,933 9,731
2,125 10,822'
15
621
8,166
381
13,874
24,168
27,068
4,025
7,986
9,062
130
9
2,246
2,945
3,055
1,502
1,867
1,918
5,655
6,486
5,390
236
453
382
2,295
2,234
1,606
40,725
44,005
39,598
29,642
32,931
34,680
1,795
1,372
1,607
7,506
7,853
7,492
1,497
1,452
1,406
85,547
95,637
98,467
6,200
6,934
8,402
357
516
404
1,397
1,489
1,219
41,464
45,961
47,498
36,129
40,736
40,945
1,498
1,892
2,535
7,819
8,368
8,536
1,351
1,313
1,262
94,445
9,541
248
1,065
48,030
35,560
5,116
8,800
1,201
135,517 111,777 13,102
721
2,412
45,945
49,597
6,878 10,214
1,128
82,889 11,530 21,008
150,697 123,186 12,862
30,126
148,345 117,906 10,511
87,421
91,095 9,429 20,527 26,891 155,017 123,016 12,671
1,406
1,495
2,005
2,378
2,457
1,986
51,017
43,377
45,322
55,523 9,651 10,886
60,065 12,044 10,973
61,032 12,725 11,231
1,092
1,074
1,076
71,441 11,247 20,125
1972—Dec. 31.
1973—Mar. 28.
June 30.
115,426
117,547
121,052
Nonmember:
1941—Dec. 31.
1945—Dec. 31.
1947—Dec. 31.
5,776
14,639
16,444
3,241 1,509
2,992 10,584
4,958 10,039
1,025
1,063
1,448
1963—Dec. 20.
1964—Dec. 31.
1965—Dec. 31.
42,464
46,567
52,028
23,550 13,391
26,544 13,790
30,310 14,137
5,523
6,233
7,581
1966—Dec. 31.
1967—Dec. 30.
1968—Dec. 31.
56,857
64,449
73,553
33,636 13,873 9,349
37,675 15,146 11,629
43,378 16,155 14,020
1969—Dec. 317
82,133
51,643 14,565 15,925 10,056
1971—Dec. 31.
108,527
1972—Dec. 31.
1973—Mar. 28.
June 30.
128,333
134,306
139,471
81,594 17,964 28,774 14,767 147,013 130,316
86,368
47,939
11,365 149,725 131,558
91,304 16,4521 31,716 13,490 157,461 138,171
For notes see p. A-21.
2,668 !
4,448|1
4,083'!
II
5,942
7,174
7,513
8,708
19,256
20,691
7,702
18,119
19,340
262
4
53
1,560
149
4,162
10,635
12,366
3,360
5,680
6,558
6
7
7
959
1,083
1,271
6,810
6,416
6,478
49,275
54,747
60,679
44,280
49,389
54,806
559
658
695
61
70
83
726
649
618
23,140
25,504
27,528
19,793
22,509
25,882
72
99
91
4,234
4,488
4,912
7,173
7,262
7,320
7 , 7 7 7 ; 65,921
8,403 74,328
9,305 84,605
59,434
67,107
76,368
709
786
908
87
89
94
543
588
691
28,471
31,004
34,615
29,625
34,640
40,060
99
162
217
5,342
5,830
6,482
7,384
7,440
7,504
94,453
83,380
1,017
85
924
37,561
43,792
629
7,403
7,595
67,188 17,058 24,282 12,092 123,970 109,841
1,212
242
1,723
44,717
61,946
582
9,451
7,875
1,408
1,076
1,248
552
559
567
1,796
1,999
2,241
52,876
49,223
52,735
73,685
78,701
81,379
1,199 10,938
1,541 11,631
1,884 12,143
8,017
8,085
8,137
129
244
D E C E M B E R 1973 • C O M M E R C I A L B A N K S
A 21
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued
(Amounts in millions of dollars)
Deposits
Loans and investments
Securities
Classification by
FRS membership
and F D I C
insurance
Cash
assets 3
Total
Noninsured
nonmember:
1941 —Dec. 31
1945—Dec. 31
1947 Dec. 316
Loans
U.S.
Treasury
Other
2
Total
assets—
Total
liabilities
and
3
capital Total
ac- 4
counts
Interbank 3
Other
Borrowings
Den land
Demand
Time
U.S.
Govt.
1,457
2,211
2,009
455
318
474
761
1,693
1,280
241
200
255
763
514
576
2,283
2,768
2,643
1,872
2,452
2,251
329
181
177
1963—Dec. 20
1964—Dec. 31
1965—Dec. 31
1,571
2,312
2,455
745
1,355
1,549
463
483
418
362
474
489
374
578
572
2,029
3,033
3,200
1,463
2,057
2,113
190
273
277
83
86
85
1967—Dec. 30
1968—Dec. 31
2,638
2,901
1,735
1,875
370
429
533
597
579
691
3,404
3,789
2,172
2,519
285
319
1969—June 30?
Dec. 31
2,809
2,982
1,800
2,041
321
310
688
632
898
895
3,942
4,198
2,556
2,570
1971—Dec. 31
3,147
2,224
239
684
1,551
5,130
1972—Dec. 31
4,865
3,731
349
785
1,794
7,073
8,196
Total
capital
accounts
Time
5
Number
of
banks
Other
1 91
1,905
18
1,392
253
365
478
13
4
4
329
279
325
852
714
783
17
23
17
832
1,141
1,121
341
534
612
93
99
147
389
406
434
285
274
263
58
56
15
10
1,081
1,366
733
767
246
224
457
464
211
197
298
316
81
41
15
16
1,430
1,559
731
638
290
336
502
528
209
197
2,923
380
116
19
1,273
1,134
283
480
181
3,775
488
81
55
1,530
1,620
527
491
206
4,438
488
145
26
1,779
2,000
885
500
204
185
5,915
4,732
345
838
1,892
Total nonmember:
1941—Dec. 31
1945—Dec. 31
1947—Dec. 31
7,233
16,849
18,454
3,696
3,310
5,432
2,270
12,277
11,318
1,266
1,262
1,703
3,431
4,962
4,659
10,992 9,573
22,024 20,571
23,334 21,591
457
425
439
190
5,504
14,101
167 13,758
3,613
6,045
7,036
18
11
12
1,288
1,362
1,596
7,662
7,130
7,261
1963—Dec. 20
1964—Dec. 31
1965—Dec. 31
44,035
48,879
54,483
24,295
27,899
31,858
13,854
14,273
14,555
5,885
6,707
8,070
6,316
7,752
8,085
51,304 45,743
57,780 51,447
63,879 56,919
749
931
972
144
156
168
743 23,972
672 26,645
635 28,649
20,134
23,043
26,495
165
198
238
4,623
4,894
5,345
7,458
7,536
7,583
1967 Dec. 30
1968—Dec. 31
67,087 39,409
76,454 45,253
15,516
16,585
12,162
14,617
8,983
9,997
77,732 69,279
88,394 78,887
1,071
1,227
147
150
603 32,085 35,372
701 35,981 40,827
408
441
6,286
6,945
7,651
7,701
1969—June 30 7
Dec. 31
80,841
85,115
14,662
14,875
16,021
16,556
81,166
85,949
1,090
1,333
160
126
765 35,500 43,652
940 39,120 44,430
741
965
7,506
7,931
7,737
7,792
1973—June 30
.
.
50,159
53,683
9,594 92,743
10,950 98,651
1971—Dec. 31
111,674 69,411
17,297 24,966
13,643 129,100 112,764
1,592
359
1,742 45,990
63,081
866
9,932
8,056
1972—Dec. 31
133,198
18,313 29,559
16,562 154,085 134,091
1,895
633
1,850 54,406
75,305
1,726
11,429
8,223
1973—June 30
145,386 96,036
16,797
15,381 165,657 142,608
1,736
712
2,267
83,379
2,770
12,643
8,341
85,325
32,554
t Beginning June 30, 1966, loans to farmers directly guaranteed by
CCC were reclassified as securities, and Export-Import Bank portfolio
fund participations were reclassified from loans to securities. This reduced
"Total loans" and increased "Other securities" by about $1 billion. "Total
loans" include Federal funds sold, and beginning with June 1967 securities
purchased under resale agreements, figures for which are included in
"Federal funds sold, etc.," on p. A-22.
Beginning June 30, 1971, Farmers Home Administration notes are
classified as "Other securities" rather than "Loans." As a result of this
change, approximately $300 million was transferred to "Other securities"
for the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom of p. A-30.
23 See first two paragraphs of note 1.
Reciprocal balances excluded beginning with 1942.
4
Includes items not shown separately. See also note 1.
5 See third paragraph of note 1 above.
6 Beginning with Dec. 31,1947, the series was revised; for description,
see note 4, p. 587, May 1964 B U L L E T I N .
7 Figure takes into account the following changes beginning June 30,
1969: (1) inclusion of consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic
subsidiaries) and (2) reporting of figures for total loans and for individual
categories of securities on a gross basis—that is, before deduction of
valuation reserves—rather than net as previously reported.
8
Beginning N o v . 9 , 1 9 7 2 , designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B U L L E T I N for
July 1972, p. 626. Categories shown here as "Large" and "All other" parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
54,514
9 Regarding reclassification as a reserve city, see Aug. 1962 B U L L E T I N ,
p. 993. For various changes between reserve city and country status in
1960-63, see note 6, p. 587, May 1964 BULLETIN. (See also note 8.)
Beginning May 6, 1972, two New York City country banks, with
deposits of $1,412 million, merged and were reclassified as a reserve city
bank. (See also note 8.)
NOTE.—Data are for all commercial banks in the United States (including Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; and nondeposit trust companies.
For the period June 1941-June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960, two through Dec. 1960,
and one through June 1962. Those banks are not included in insured
commercial banks.
Beginning June 30, 1969, commercial banks and member banks exclude
a small national bank in the Virgin Islands; also, member banks exclude,
and noninsured commercial banks include, through June 30, 1970, a small
member bank engaged exclusively in trust business; beginning 1973,
excludes one national bank in Puerto Rico.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
Data for national banks for Dec. 31, 1965, have been adjusted to make
them comparable with State bank data.
Figures are partly estimated except on call dates.
For revisions in series before June 30, 1947, see July 1947 B U L L E T I N ,
pp. 870-71.
A 22
COMMERCIAL BANKS • DECEMBER 1973
LOANS AND INVESTMENTS BY CLASS OF BANK
(In millions of dollars)
Other loans
Class of
bank and
call date
Total
loans i
and
investments
Total: 2
1947—Dec. 3 1 . . 116,284
Federal
funds
sold,
etc. 2
1
Investments
For
purchasing
or carrying
securities
Total
3,4
To
U.S. Treasury
financial
securities 6
Cominstitutions
Other,
mer- AgriReal
to
cial
culesin- Other
turand
tate
diTo
al 5 broinvidBills
dusuals3
kers T o
and Notes Bonds
Banks Others
Total
trial
and others
certifidealcates
ers
38,057 18,167 1,660
115
830 1,220
9,393
5,723
947 69,221
9 , 9 8 2 6,034 53,205
1972—Dec. 31 io 599,367 26,662 388,593 132,701 14,314 11,316 4,491 6,585 23,402 98,382 87,232 10,171 67,028
1973—June 30.. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 9,853 27,685 108,199 94,416 11,020 57,877
AH insured:
1941—Dec. 3 1 . . 49,290
1945—Dec. 3 1 . . 121,809
1947—Dec. 3 1 . . 114,274
21,259 9 , 2 1 4 1,450
614 662
25,765 9,461 1,314 3,164 3,606
37,583 18,012 1,610 823 1,190
40
49
114
4,773
4,677
9,266
18,021 8,671
972
594 598
22,775 8,949
855 3,133 3,378
32,628 16,962 1,046
811 1,065
1972—Dec. 31 io 466,169 19,961 309,969 112,110 8,495 10,863 3,870
1973—Mar. 28. 472,546 19,090 322,778
June 30.. 490,908 19,705 341,577 127,194 9,467 7, i 03 4,122
New York City.-*1
1941—Dec. 3 1 . . 12,896
1945—Dec. 3 1 . . 26,143
1947—Dec. 3 1 . . 20,393
4 , 0 7 2 2,807
7,334 3,044
7,179 5,361
1972—Dec. 31 io 75,034
1973—Mar. 2 8 . 76,790
June 30.. 79,212
812 57,901 27,864
1,674 61,021
1,394 64,033 31,880
City of Chicago: i*
1941—Dec. 3 1 . .
1945—Dec. 3 1 . .
1947—Dec. 3 1 . .
39
47
113
4,505
21,046
988 3,159 16,899 3,651 3,333
2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258
5,654
914 67,941 9,676 5,918 52,347 5,129 3,621
89,173 27,125
90,967 29,21
3,494
3,653
19,539
971 3,007 15,561 3,090 2,871
3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815
7,130 4 , 6 6 2
839 57,914 7,803 4,815 45,295 4,199 3,105
5,783 22,026 73,131 64,490 9,201 48,715
69,640 17,884
8,634 26,258 79,840 69,006 9,953 41,080
69,374 19,172
32
26
93
412
169
2,453 1,172
267
545
123
80
111
522
7,265
311 1,623 5,331
287
272 17,574 3,910 3,325 10,339
564
238 11,972 1,642
558 9 , 7 7 2
841 2,271
6,413
5,789
5,225 2,390
5,696
9,107 1,518
772 3,776
8,776
6,352
5,158 2,676
4,661
7,224 1,900
6
2
3
21
73
1972—Dec. 31 io 21,362
1973—Mar. 28. 22,639
June 30.. 24,566
718 15,576 7,851
1,367 16,750
1,097 18,549 10,034
140
,330
282
129
843
" 313
Other large banks:11
1941—Dec. 3 1 . . 15,347
1945—Dec. 3 1 . . 40,108
1947—Dec. 3 1 . . 36,040
7,105 3,456
8,514 3,661
13,449 7,088
300
205
225
114
427
170
194
,503
484
22
36
46
52
233
87
341 2,780
598
4
17
15
3^558
95
51
149
1,430
40 4,213
26 2,890
1,066 1,138
648
i \ 207
72i
1,146
1,527
1,459
3,147
256
1,600
367
153 1,022
749 1,864
248 2,274
1,873
1,508
6,467
751 5,421
295
855
387 29,552 8,016 5,653 15,883
,969
351 20,196 2,731 1,901 15,563
1972—Dec. 31 io 171,618 9,927 116,802 44,483 1,977 2,024 1,707 2,716 10,268 27,014 22,669 3,943 16,316
1973—Mar. 28. 173,016 7,960 122,475
June 30.. 180,726 9,333 129,182 50,457 2,241 i , 4 i 5 '784 3,603 11,440 29,705 24,357 4,181 13,066
1,676
1,484
3,096
659
648
818
1972—Dec. 31 io 198,156 8,504 119,690 31,911 6,327
1973—Mar. 2 8 . 200,101 8,089 122,531
June 30.. 206,404 7,882 129,813 34,824 7,015
Nonmember:
1947—Dec. 3 1 . . 18,454
1972—Dec. 31 io 133,198
1973—June 30. 145,386
20
42
23
452 1,040
282 i *253
614
20
156
453
263
622
630
1,205
2
4
5
183
471
227
6,701 78,624 20,591 5,819
7,947 88,089 23,196 6,518
5,432
182
181
213
193
204
185
2,820
375
2,796
"409
956
1,126
1,342
820
916
,053
24,049 4,523
24,435 4 , 7 1 0
1,528
4,377
707
359 26,999
1,979
224 22,857
110
481 3,787 1,222 1,028
5,732 4 , 5 4 4 16,722 1,342 I , 0 6 7
3,063 2,108 17,687 2,006 1,262
455 2,565 39,262 35,458 2,220 24,830
33,664 II,468
2 * 484 42,638 38,284 2,376 21,638
34,919 12,153
"657
1 Beginning with June 30, 1948, figures for various loan items are
shown gross (i.e., before deduction of valuation reserves); they do not
add to the total and are not entirely comparable with prior figures. Total
loans
continue to be shown net. See also note 10.
2
Includes securities purchased under resale agreements. Prior to June 30,
1967, such securities were included in loans—for the most part in loans to
"Banks." Prior to Dec. 1965, Federal funds sold were included with
"Total" loans and loans to "Banks."
3 See table (and notes), Deposits Accumulated for Payment of Personal
Loans, p. A-30.
830
629
604
50 7,057
732
954
760
1,333
1,801 1,418
5,890
5,596
10,199
729
606
638
81 4*563
2,760
5,931
5,088
All other member
1941—Dec. 3 1 . . 12,518
1945—Dec. 3 1 . . 35,002
1947—Dec. 3 1 . . 36,324
5,276 3,729
89,504 27,579
91,312 29,787
1972—Dec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6,115 23,277 98,204 86,912 10,099 66,679
1973—Mar. 28. 606,852 25,931 402,305
9,060 27,574 108,008 94,060 10,909 57,532
June 30.. 630,379 26,162 426,425 148,825 15,967 1,295 4,721
Member—Total:
1941—Dec. 3 1 . . 43,321
1945—Dec. 3 1 . . 107,183
1947—Dec. 3 1 . . 97,846
State
and
local Other
secugovt, rities
5
securities
1,823
1,881
3,827
1,061
109 11,318
1.377 25,250 22,741
1,427 28,359 25,410
969 18,313
,067 16,797
2,266
803
,219
2,179
1,219 7 , 9 2 0
1,078
625
19,864 9,695
21,939 10,615
4
Breakdowns of loan, investment, and deposit classifications are not
available before 1947; summary figures for 1941 and 1945 appear in the
table on pp. A-18—A-21.
5 Beginning with June 30, 1966, loans to farmers directly guaranteed
by CCC were reclassified as "Other securities," and Export-Import Bank
portfolio fund participations were reclassified from loans to "Other
securities." This increased "Other securities" by about $1 billion.
6 Beginning with Dec. 31, 1965, components shown at par rather than
at book value; they do not add to the total (shown at book value) and are
not entirely comparable with prior figures. See also note 10.
Notes continued on opposite page.
A 23
DECEMBER 1973 • COMMERCIAL BANKS
RESERVES AND LIABILITIES BY CLASS OF BANK
(In millions of dollars)
Time deposits
Demand deposits
Class of
bank and
call date
Total: 3
1947—Dec. 3 1 . . . .
Reserves
with
F.R.
Banks
DeBalmand
Curances
derency
with
posits
doand
adcoin mestic7
banks justed 8
17,796 2,216
10,216 87,123
Interbank
DoFormestic 7 eign 9
11,362
1972—Dec. 31 io, 26,070 8,666 32,185 212,121 29,971
1973—June 3 0 . . . 25,143 7,669 29,842 202,109 26,978
All insured :
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
12,396 1,358
15,810 1.829
17,796 2,145
8,570
11,075
9,736
37,845
74,722
85,751
9,823
12,566
11,236
1972—Dec. 31 io . 26,070 8,637 30,734 210,287 29,731
1973—Mar. 28 . . . 27,160 8.830 23,131 194,096 22,443
June 3 0 . . . 25,143 7,658 28,238 200,083 26,713
Member—Total:
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
12,396
15,811
17,797
1,087
1,438
1,672
1972—Dec. 31 io, 26,070 6,582
1973—Mar. 28 . . , 27,160 6,710
June 3 0 . . . 25,143 5,754
U.S.
Govt.
State
and
local
govt.
1,343
6,799
3,883 10,875
4,069 10,434
18,588
18,166
673 1,762
1,248 23,740
1,379 1,325
3,677
5,098
6,692
1,430
3,635 10,820 18,459
3,279 11,322 16,111
3,846 10,408 18,016
Certified
and
officers'
checks,
etc.
2,581
IPC
84,987
U.S.
Govt, State
and
Inter- and
bank Postal local
Sav- govt.
ings
240
11,685 221,950 4 , 1 9 4
11,162 207,625 5 , 5 9 0
1,077
2,585
2,559
36,544
72,593
83,723
158
70
54
11,177 221,057 4,113
8,593 194,898 4,339
10,473 206,685 5,446
9,714
12,333
10,978
671 1,709
1,243 22,179
1,375 1,176
3,066
4,240
5,504
1,009
2,450
2,401
19,396 158,464 28,521
14,719 145,411 21,537
18,004 148,306 25,684
3,437 9,024
3,108 9,323
3,627 8,167
13,544
11,732
13,251
9,503
7,347
8,781
3,595
3,535
3,236
607
866
1,105 6,940
1,217
267
319
237
290
450
1,338
1,105
11,282
15,712
17,646
1,418
1,688
1,115
741
686
646
3,592
3,017
3,403
31,040 1,833
25,248 1,984
26,558 2,773
6,246 33,754
7,117 64,184
6,270 73,528
33,061
62,950
72,704
140
64
50
174,770 3,562
151,299 3,780
160,407 4,879
111
59
103
11
50
99
105
1972—Dec. 31 io,
1973—Mar. 28 . . .
June 3 0 . . .
5,695
5,292
4,981
508
562
467
City of Chicago:11
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
1,021
942
1,070
43
36
30
298
200
175
2,215
3,153
3,737
1,027
1,292
1,196
127
,552
72
233
237
285
34
66
63
2,152
3,160
3,853
1972—Dec. 31 io.
1973—Mar. 28. . .
June 30. . .
1,496
1,435
1,512
152
116
126
173
112
138
5,783
5,148
5,827
1,516
1,232
1,206
509
459
299
223
143
225
264
162
229
6,899
6,134
6,918
160
207
392
95
150
224
Other large banks:11
1941—Dec. 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
4,060
6,326
7,095
425
494
562
2 , 5 9 0 11,117
2,174 22,372
2,125 25,714
4,302
6,307
5,497
491
8,221
405
1,144
1,763
2,282
286
611
705
11,127
22,281
26,003
104
30
22
20
38
45
10,085 2,114
10,958 2,124
9,345 1,788
4,688 52,813
3,694 48,856
4,099 49,344
10,426
7,762
8,446
707 3,860
639 3,767
731 2,988
3,854
3,421
3,954
3,075
2,336
2,728
64,447
54,882
58,194
1,173
1,196
1,371
526
796
929
9,661
3,216
4,665 23,595
3,900 27,424
790
1,199
1,049
225
5,465
432
1,370
2,004
2,647
239
435
528
8,500
21,797
25,203
30
17
17
8,794 3,807
9,474 3,908
9,305 3,373
9,681 76,597
6,893 69,720
8,211 72,658
4,047
3,016
3,353
3,238
3,409
3,766
8,726
7,482
8,426
2,571
1,832
2,421
72,384
65,035
68,737
395
393
342
1972—Dec. 31 i o .
1973—Mar. 2 8 . . .
June 3 0 . . .
All other member:11
1941—Dec. 3 1 . . . .
1945—Dec 3 1 . . . .
1947—Dec. 3 1 . . . .
1972—Dec. 31 i o .
1973—Mar. 28 . . .
June 3 0 . . .
2,210
4,527
4,993
Nonmember: 3
1947—Dec. 3 1 . . . .
1972—Dec. 31 io
1973—June 3 0 . .
544
2,084
1,915
12,532 2,562
9,527 2,292
12,679 2,661
54
110
131
29
20
14
4 5,886
208 7,589
54 8,464
778
1,206
1,418
1,648
195 2,120
30 2,259
288
377
426
476
719
902
847
9,237 3,008
1,891
930
11,357 4,146
1,947
,006 10,230 3,861 1,905
243 4 , 5 4 2
160 9,563
332 11,045
1,967
2,566
2,844
181 11,811 74,449 19,392 14,687
175 12,810 78,380 22,129 14,869
158 13,145 81,531 24,032 15,260
31
52
45
146
219
337
6,082
12,224
14,177
4 1,982
11 2,525
23 2 , 9 3 4
181 13,373 101,243 4,455 16,608
176 15,122 104,170 6,439 17,012
167 14,661 107,293 6,753 17,604
385
167
1,295
180
12,284
190
172
446 1,851
442 2,267
5,044
4,915
2,182
2,381
47,180
47,219
633
712
138 8,608
162 9,922
BULLETIN.
10 6,844
215 8,671
61 9 , 7 3 4
2,522 26,196 9 , 5 0 2 8 , 0 4 2
2,766 30,121 9,951 8,112
2,075 30,788 11,597 8,287
1,449
1,294
Beginning June 30, 1969, reflects (1) inclusion of consolidated reports
(including figures for all bank-premises subsidiaries and other significant
majority-owned domestic subsidiaries) and (2) reporting of figures for
total loans and for individual categories of securities on a gross basis—that
is before deduction of valuation reserves. See also notes 1 and 6.
11 Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B U L L E T I N for
July 1972, p. 626. Categories shown here as "Large" and "All other"
6
17
12
13,595
3,947
Beginning with 1942, excludes reciprocal bank balances.
8 Through 1960 demand deposits other than interbank and U.S.
Govt., less cash items in process of collection; beginning with 1961,
demand deposits other than domestic commercial interbank and U.S.
Govt., less cash items in process of collection.
9
For reclassification of certain deposits in 1961, see note 6, p. 589,
1964
418 11,878
399 23,712
693 27,542
12,789 53,658
11,838 53,803
7
May
492 15,146
496 29,277
826 33,946
468 28,553 211,124 6,357 41,228
41,897
516 31,705 222,900 42v
569 30,812 230,969 46,529 43,098
93
111
151
4 , 8 5 4 23,271
4 , 0 2 0 21,687
5,557 20,478
65 10,059
606 37,086 276,138 37,556 52,166
666 41,495 291,662 43,921 53,529
730 40,655 302,344 48,413 55,240
5,105
4,015
4,639
10,761
15,065
16,653
866 34,383
52,658
606 37,161 277,683 38,1
730 40,734 304,265 49,299 55,740
New York City;H
1941—Dec 3 1 . . . .
1945—Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .
141
78
70
IPC 3
CapiBortal
rowacings counts
6,858
12
1,596
66,559 1,726 11,429
73,295 2 , 7 7 0 12,643
parallel the previous "Reserve city" and "Country" categories, respectively
(hence the series are continuous over time).
NOTE.—Data are for all commercial banks in the United States; member
banks in U.S. possessions were included through 1968 and then excluded.
For the period June 1941—June 1962 member banks include mutual
savings banks as follows: three before Jan. 1960, two through Dec. 1960,
and one through June 1962. Those banks are not included in all insured or
total banks.
A small noninsured member bank engaged exclusively in trust business
is treated as a noninsured bank and not as a member baiik for the period
June 30, 1 9 6 9 - J u n e 30, 1970.
Comparability of figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications of cities and individual banks, and by mergers, etc.
For other notes see opposite page.
A 24
WEEKLY REPORTING BANKS • DECEMBER 1973
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Loans
Other
Federal funds sold, etc.*
Wednesday
Total
loans
and
investments
To brokers
and dealers
involving—
Total
To
commercial
banks
U.S.
Treasury
securities
Other
securities
For purchasing
or carrying securities
Commercial
and
industrial
To
others
To brokers
and dealers
Agricultural
U.S.
Treasury
sees.
Other
sees.
To nonbank
financial
institutions
To
others
U.S.
Treasury
sees.
Other
sees.
COS.,
etc.
Large banks—
Total
1972
Nov.
8
15
22
29
309,824
313,429
311,490
314,146
11,837
13,615
11,865
12,480
10,933
11,117
10,728
11,445
489
,973
463
626
308
353
378
284
107
172
296
125
216,639
218,311
217,670
218,272
88,356
88,496
88,501
88,642
2,699
2,712
2,730
2,745
1,459
1,003
1,265
7,721
7,940
7,585
7,551
193
190
193
203
2,820
2,832
2,825
2,849
1973
Oct.
3
10
17
24
31
356,569
361,917
355,079
355,714
358,429
14,470
17,802
13,733
13,664
14,629
13,094
13,889
12,461
12,453
13,291
831
3,346
874
790
913
186
159
144
132
221
359
408
254
289
204
261,864
262,826
260,935
260,754
261,508
108,332
108,162
107.657
107,124
106,699
3.345
3,316
3,328
3.346
3,379
694
1,340
634
741
547
5,507
5,534
5,328
5,614
5,910
158
159
160
152
149
2,942
2,932
2,936
2,914
2.902
Nov.
7*>
14*>
21*
363,207
360,150
358,562
359,705
16,290
15,81
13,487
14,443
14,400
14,163
12,059
12,845
1,312
1,206
924
1,100
349
258
289
321
229
184
215
177
263,271
261,638
261,566
262,370
107,041
107,124
107,381
107,425
3,406
3.402
3.403
3,422
1,445
613
628
631
6,012
5,752
5,632
5,530
138
135
143
143
2.903
2,874
2,852
2,864
64,718
65,980
65,299
66,101
743
891
883
1,256
709
834
697
1,240
12
28
49,586
50,513
49,633
49,812
24,916
25,002
24,946
24,930
677
1,268
874
1,102
4,907
5,083
4,758
4,698
669
676
665
684
28*>
New York City
1972
Nov.
8
15
22
29
182
12
1973
Oct.
3
10
17
24
31
76,242
77,423
75,707
76,854
77,465
2,106
1,573
1,391
1,960
1,639
2,011
1,451
1,266
1,839
1,507
30
120
120
120
2
60,845
62,045
60,629
61,107
61,580
30,801
30,918
30,824
30,738
30,557
87
88
94
96
101
588
1,223
550
653
463
3,294
3,400
3,171
3,542
3,751
681
680
678
674
679
Nov.
7»
14p
79,250
78,054
77,988
78,616
1,060
1,845
1,760
2,298
940
1,725
1,640
2,178
120
120
120
120
63,271
61,585
61,346
61,839
30,783
30,737
30,851
30,935
107
108
109
112
1,318
543
534
514
3,781
3,447
3,360
3,296
685
662
653
652
245,106
247,449
246,191
248,045
11,094
12,724
10,982
11,224
10,224
10,283
10,031
10,205
467
1,944
459
622
308
353
378
284
95
144
114
113
167,053
167,798
168,037
168,460
63,440
63,494
63,555
63,712
2,649
2,663
2,684
2,699
131
191
129
163
2,814
2,857
2,827
2,853
168
2,151
2,156
2,160
2,165
21*
28p
Outside
New York City
1972
Nov.
8
15
22
29
151
155
158
1973
Oct.
3
10
17
24
31
280,327
284,494
279,372
278,860
280,964
12,364
16.229
12,342
11,704
12,990
11,083
12,438
11,195
10,614
11,784
829
3,316
754
670
793
186
159
144
132
221
266
316
249
288
192
201,019
200,781
200,306
199,647
199,928
77,531
77,244
76,833
76.386
76,142
3,258
3,228
3,234
3,250
3,278
106
117
84
88
84
2,213
2,134
2,157
2,072
2,159
122
121
122
119
119
2,261
2,252
2,258
2,240
2,223
Nov.
7®
14f
21*
28*
283,957
282,096
280,574
281,089
15.230
13,966
11,727
12,145
13,460
12,438
10,419
10,667
1,192
1,086
804
980
349
258
289
321
229
184
215
177
200,000
200,053
200,220
200,531
76,258
76.387
76,530
76,490
3,299
3,294
3,294
3,310
127
70
94
117
2,231
2,305
2,272
2,234
108
104
112
112
2,218
2,212
2,199
2,212
For notes see p. A-28.
Pers.
and
sales
finan.
DECEMBER 1973 • WEEKLY REPORTING BANKS
A 25
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Loans (cont.)
Investments
Other (cont.)
U.S. Treasury securities
To commercial
banks
Domestic
Foreign
Notes and bonds
maturing—
Consumer
instalment
Wednesday
Foreign
govts. 2
All
other
Bills
Certificates
Within
1 yr.
1 to
5 yrs.
After
5 yrs.
Large banks—
Total
1972
1.838
1.839
1,924
1,970
2,875
2,994
2,960
2,929
27,287
27,363
27,438
27,548
1.131
1.132
1,128
1,146
17,710
17,587
17,712
17,545
25,669
26,313
26,597
27,925
3,838
3,703
4,126
5,568
4,369
4,268
4,288
4,458
14,540
15,377
15,224
15,077
2,922
2,965
2,959
2,822
3,485
3,356
3,412
3,386
3,531
4,640
4,789
4,655
4,744
4,523
31,922
31,968
32,038
32,132
32,259
1,307
1,339
1,313
1,288
1,325
20,103
20,310
20,319
20,426
20,797
22,523
23.179
22,887
23,108
23,195
3,321
3,971
3,650
3,917
3,939
4,384
4.428
4,457
4,494
4,454
12,137
12,069
12,066
11,982
12,037
3,463
3,526
3,790
3,818
4,422
4,495
4,365
4,529
32,292
32,385
32,439
32,523
1,354
1,408
1,403
1,408
21,177
20,172
20,291
20,347
24.180
24,129
24,872
24,338
5,052
5,114
4,837
4,437
4,416
4.429
4,075
3,946
11,908
11,865
12,354
12,431
Nov.
8
15
22
29
2,681
2,711
2.714
2.715
2,765
Oct.
3
10
17
24
31
2,804
2,721
3,606
3,524
Nov.
1973
1p
14 p
2\P
28*
New York City
1972
447
458
448
463
1,363
1,441
1,446
1,430
2,049
2.057
2,056
2.058
729
722
714
737
3,720
3,594
3,692
3,536
4,493
4,981
5,224
5,436
1,024
934
1,243
1,565
779
782
769
766
2,399
2,915
2,835
2,734
291
350
375
371
1.364
1,255
1,202
1,257
1.365
1,864
2,048
1,889
1,931
2,394
2,402
2,402
2.408
2.409
669
657
651
642
670
4,277
4,450
4,427
4,517
4,762
3,890
4,196
4,254
4,361
4,587
965
1,253
1,205
1,370
1,411
702
736
746
728
738
1,670
1,649
1,681
1,624
1,709
1,368
1,468
1,647
1,661
1,930
2,066
1,972
2,090
2,411
2,419
2,432
2,443
685
748
722
728
5,200
4,390
4,456
4,440
4,890
4,834
5,029
4,719
1,734
1,797
1,443
1,188
687
711
759
664
1,719
1,659
1,634
1,681
Nov.
8
15
22
29
553
558
622
639
729
Oct.
3
10
17
24
31
750
667
1,193
1,186
Nov.
1973
1,982
1p
14f
21P
28 f
Outside
New York City
1972
1,391
1,381
1,476
1,507
1,512
1,553
1,514
1,499
25,238
25,306
25,382
25,490
402
410
414
409
13,990
13,993
14,020
14,009
21,176
21,332
21,373
22,489
2,814
2,769
2,881
4,003
3,590
3,486
3,519
3,692
12,141
12,462
12,389
12,343
2,631
2,615
2,584
2,451
2,121
2,101
2,210
2,129
2,166
2,776
2,741
2,766
2,762
2,592
29,528
29,566
29,636
29,724
29,850
638
682
662
646
655
15,826
15,860
15,892
15,909
16,035
18,633
18,983
18,633
18,747
18,608
2,356
2,718
2,445
2,547
2,528
3,682
3,692
3,711
3,766
3,716
10,467
10,420
10,385
10,358
10,328
2,095
2,058
2,143
2,157
2,492
2,429
2,393
2,439
29,881
29,966
30,007
30,080
669
660
681
680
15,977
15,782
15,835
15,907
19,290
19,295
19,843
19,619
3,318
3,317
3,394
3,249
3,729
3,718
3,316
3,282
10,189
10,206
10,720
10,750
.Nov.
8
15
.22
29
2,128
2,153
2,092
2,076
2,036
.Oct.
3
10
17
24
31
2,054
2,054
2,413
2,338
.Nov.
1p
UP
21*
1973
For notes see p. A-28.
28 p
W E E K L Y R E P O R T I N G B A N K S • D E C E M B E R 1973
A 26
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Investments (cont.)
Other securities
Wednesday
Total
Obligations
of State
and
political
subdivisions
Tax
warrants 3
All
other
Other bonds,
corp. stock,
and
securities
Certif.
of
participation 4
Cash
items
in
process
of
collection
Reserves
with
F.R.
Banks
Currency
and
coin
Balances
with
domestic
banks
Investments
in subsidiaries not
consolidated
Other
assets
All
others
Large banks—
Total
1972
55,679
55,190
55,358
55,469
9,087
8,833
8,828
8,769
37,909
37,594
37,772
37,878
1,662
1,741
1,712
1,763
7.021
7.022
7,046
7,059
32,951
29,628
28,708
29,136
21,528
17,322
19,109
17,809
3,654
3,836
3,734
4,402
10,198
10,009
8,861
10,023
1.071
1.072
1.073
1,076
17,492
16,946
16,716
16,871
3
10
17
24
31
57,712
58,110
57,524
58,188
59,097
7,578
7,515
7,391
7,604
7,678
38,648
38,875
38,524
38,562
38,883
2,113
2,238
2,173
2,213
2,241
9,373
9,482
9,436
9,809
10,295
31,678
32,649
31,819
33,369
34,426
22,661
17,406
23,700
24,937
25,037
4,022
4,229
4,215
4,378
4,279
10,541
11,175
10,415
13,161
13,062
1,331
1,335
1,412
1,415
1,340
21,054
20,825
20,610
20,217
20,999
7*
14*
21*
28*
59,466
58,572
58,637
58,554
7,749
7,348
7,180
7,152
39,187
38,666
38,970
38,894
2,212
2,230
2,193
2,295
10,318
10,328
10,294
10,213
36,848
36,059
31,700
31,376
20,940
25,990
23,538
22,356
3,955
4,359
4,021
4,742
14,314
12,417
10,576
12,168
1,355
1,360
1,395
1,368
20,599
19,883
20,033
20,369
9,896
9,595
9,559
9,597
2,692
2,605
2,583
2,583
5,669
5,395
5,387
5,395
416
501
488
536
1,119
1,094
1,101
1,083
12,243
10,019
9,703
11,548
5,498
4,605
4,466
4,401
457
458
418
501
4,304
3,393
3,104
4,223
537
536
537
537
5,522
5,238
5,047
5,093
9,401
9,609
9,433
9,426
9,659
2,183
2,156
2,218
2,267
2,333
4,931
5,027
4,801
4,710
4,739
583
649
637
622
613
1,704
1,777
1,777
1,827
1,974
9,842
10,314
10,224
13,164
13,573
5,350
4,955
5,580
6,735
6,681
487
523
489
517
480
4,522
4,230
4,469
7,039
6,760
641
642
644
643
648
6,645
6,546
6,658
6,281
6,534
10,029
9,790
9,853
9,760
2,311
2,368
2.247
2.248
5,070
4,803
4,975
4,878
611
601
590
594
2,037
2,018
2,041
2,040
16,504
13,296
9,870
11,711
5,719
7,197
5,358
5,387
508
511
454
539
7,972
6,431
4,328
6,308
663
662
665
668
5,945
5,636
5,909
5,804
45,783
45,595
45,799
45,872
6,395
6,228
6,245
6,186
32,240
32,199
32,385
32,483
1,246
1,240
1,224
1,227
5,902
5,928'
5,945
5,976
20,708
19,609
19,005
17,588
16,030
12,717
14,643
13,408
3,197
3,378
3,316
3,901
5,894
6,616
5,757
5,800
534
536
536
539
11,970
11,708
11,669
11,778
Nov.
8
15
22
29
Oct.
Nov.
1973
New York City
1972
Nov.
8
15
22
29
Oct.
3
1973
10
17
24
31
Nov.
7*
14*
21*
28*
Outside
New York City
1972
Nov.
8
15
22
29
Oct.
3
10
17
24
31
48,311
48,501
48,091
48,762
49,438
5,395
5,359
5,173
5,337
5,345
33,717
33,848
33,723
33,852
34,144
1,530
1,589
1,536
1,591
1,628
7,669
7,705
7,659
7,982
8,321
21,836
22,335
21,595
20,205
20,853
17,311
12,451
18,120
18,202
18,356
3,535
3,706
3,726
3,861
3,799
6,019
6.945
5.946
6,122
6,302
690
693
768
772
692
14,409
14,279
13,952
13,936
14,465
Nov.
7*
14*
21*
28*
49,437
48,782
48,784
48,794
5,438
4,980
4,933
4,904
34,117
33,863
33,995
34,016
1,601
1,629
1,603
1,701
8,281
8,310
8,253
8,173
20,344
22,763
21,830
19,665
15,221
18,793
18,180
16,969
3,447
3,848
3,567
4,203
6,342
5,986
6,248
5,860
692
698
730
700
14,654
14,247
14,124
14,565
1973
For notes see p. A-28.
DECEMBER 1973 • WEEKLY REPORTING BANKS
A 27
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Deposits
Demand
IPC
States
and
political
subdivisions
Time and savings
Domestic
interbank
U.S.
Govt.
Commercial
IPC
Foreign
ComMutual
Govts., mersavetc. 2
cial
ings
banks
Certified
and
officers*
checks
Total 6
Savings
Other
States
and
political
subdivi-
Domestic
interbank
Wednesday
Foreign
govts. 2
Large banks—
Total
1972
773
829
3,233
2,994
3,095
2,849
7,473
6,090
5,739
6,886
157,864
157,575
158,586
158,858
58,218
58,179
58,237
58,184
72,462
72,271
72,916
73,103
18,085
17,785
18,007
18,008
2,835
2,853
2,914
2,945
5,701
5,846
5,869
5,955
899
876
739
745
875
952
1,114
1,071
1,064
1,034
3,654
3,597
3,608
3,809
3,862
7,063
7,899
6,824
9,427
8,241
189,784
189,293
189,269
189,480
188,703
56,172
56,172
56,190
56,171
56,135
96,585
96,153
96,187
95,969
95,432
22,598
22,575
22,399
22,553
22,279
6,036
5,791
5,655
5,678
5,669
7,968
8,175
8,347
8,614
8,691
Oct.
3
10
17
24
31
820
685
629
604
1,021
888
954
1,057
3,999
4,011
3,835
3,781
9,145
9,461
5,885
7,485
187,077
186,338
186,468
186,486
56,257
56,262
56,315
56,276
94,098
93,623
93,872
94,017
22,079
21,886
21,670
21,559
5,621
5,794
5,815
5,849
8,525
8,278
8,310
8,280
Nov.
7*
14*
21*
28*
106,703
110,154
108,163
108,876
6,555
6,931
6,506
6,483
2,784
3,200
3,831
4,824
23,394
20,819
19,054
20,620
864
757
700
657
110,371
112,724
111,650
110,439
112,865
6,317
6,291
5,913
5,931
7,159
5,512
2,363
3,173
3,677
3,480
21,246
23,223
21,128
23,593
24,603
112,458
112,883
111,914
112,294
6,800
6,410
6,450
6,182
2,200
1,494
2,424
2,139
28,248
23,768
21,189
22,380
836
818
Nov.
8
15
22
29
1973
New York City
1972
22,764
23,636
23,203
24,238
394
398
406
362
23,642
23,938
23,383
23,897
24,648
552
419
352
358
821
25,728
23,752
23,851
24,566
464
366
433
344
429
390
347
326
687
655
639
690
2,391
2,164
2,187
2,003
3,953
2,453
2,548
3,355
27,529
27,078
27,327
27,458
5,644
5,644
5,644
5,640
15,285
14,966
15,184
15,202
2,095
1,934
1,889
1,914
1,600
1,653
1,667
2,829
2,835
2,857
2,936
9,469
10,543
10,076
12,457
13,234
504
476
383
364
389
779
947
889
905
880
2,576
2,539
2,556
2,757
2,818
3,256
3,405
3,233
5,967
4,574
34,934
34,792
34,717
34,621
34,711
4,948
4,941
4,932
4,934
4,939
20,004
19,912
20,057
19,863
19,732
2,103
2,109
1,925
1,987
1,986
4,036
3,839
3,728
3,697
3,762
3,762
3,905
3,999
4,058
4,212
• Oct.
3
10
17
24
31
477 15,684
150 12,030
458 9,890
363 11,561
400
346
323
311
863
731
804
895
2,981
2,949
2,763
2,777
5,430
5,630
2,402
3,889
34,056
34,558
34,952
34,913
4,966
4,977
4,961
4,961
19,110
19,456
19,699
19,694
2,074
2,143
2,148
2,140
3,736
3,934
4,039
4,044
4,091
3,969
4,028
3,998
.Nov.
7*
14*
21*
536 10,768
874 8,987
789 8,208
974 10,077
1,577
.Nov.
.15
.22
.29
1973
1,074
444
610
706
603
28*
Outside
New York City
1972
83,939
86,518
84,960
84,638
6,161
6,533
6,100
6,121
2,248
2,326
3,042
3,850
86.729
88,786
88,267
86,542
88,217
5,765
5,872
5,561
5,573
6,338
86.730
89,131
88,063
87,728
6,336
6,044
6,017
5,838
12,626
11,832
10,846
10,543
435
367
353
331
149
163
134
139
842
830
908
846
3,520
3,637
3,191
3,531
130,335
130,497
131,259
131,400
52,574
52,535
52,593
52,544
57,177
57,305
57,732
57,901
15,990
15,851
4,438
1,919
2,563
2,971
2,877
11,777
12,680
11,052
11,136
11,369
395
400
356
381
486
173
167
182
159
154
1,078
1,058
1,052
1,052
1,044
3,807
4,494
3,591
3,460
3,667
154,850
154,501
154,552
154,859
153,99J
51,224
51,231
51,258
51,237
51,196
1,723
1,344
1,966
1,776
12,564
11,738
11,299
10,819
420
339
306
293
158
157
150
162
1,018
1,062
1,072
1,004
3,715
3,831
3,483
3,596
153,021
151,780
151,516
151,573
51,291
51,285
51,354
51,315
16,094
1,258
1,253
1,261
1,278
2,872
3.011
3.012
3,019
76,581
76,241
76,130
76,106
.75,700
20,495
20,466
20,474
20,566
20,293
2,000
1,952
1,927
1,981
1,907
4,206
4,270
4,348
4,556
4,479
.Oct.
74,988
74,167
74,173
74,323
20,005
19,743
19,522
19,419
1,885
1,860
1,776
1,805
4,434
4,309
4,282
4,282
.Nov.
16,118
.Nov.
8
15
22
29
1973
For notes see p. A-28.
3
.10
.17
.24
.31
7*
14*
21*
28*
WEEKLY REPORTING BANKS • DECEMBER 1973
A 28
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
Reserves
for—
Borrowings
from—
Wednesday
Federal
funds
purF.R.
chased, Banks
etc. 7
Other
liabilities,
Others etc. 8
Loans
Memoranda
Securities
Total
capital
Total
loans
(gross)
adjusted^
Large negotiable
Total
time CD's
Gross
loans
included in time
liabiliDeand savings deposits 11 ties of
and
invest- mand
banks
ments deposits
to
ad(gross)
Issued Issued their
ad- 9 justed io Total
to
to
foreign
justed
IPC's others branches
Large banks—
Total
1972
34,436
32,252
32,744
31,365
,332
25
118
525
2,181
2,068
2,026
2,157
15,702
15,314
14,981
15,071
4,192
4,191
4,199
4,208
29,098
28,983
29,106
29,184
215,705
218,970
216,883
217,337
297,053
300,473
298,838
300,731
92,713
98,116
96,268
97,444
42,919
42,884
43,701
43,898
27,879
27,756
28,400
28,462
15,040
15,128
15,301
15,436
3
10
17
24
31
42,191
42,733
43,403
43,508
45,277
551
317
1,118
2,820
1,677
5,813
5,660
5,827
5,727
6,028
17,583
17,679
17.755
17,095
17.756
4,618
4,608
4.605
4.608
4,613
31,237
31,094
31,102
31,203
31,334
259,755
263,383
258,795
258,579
259,315
339,990
344,672
339,206
339,875
341,607
97,578
99,852
97,986
98,046
99,610
67,502
66,765
66,287
66,303
65,464
45,212
44,749
44,434
44,092
43,422
22,290
22,016
21,853
22,211
22,042
7*
14*
49,546
51,676
48,796
48,415
531
3,699
970
1,025
5,894
5,645
5,653
5,507
17,488
17,223
18,678
18,654
4,613
4,613
4.606
4.609
31,313
31,359
31,309
31,401
261,698
259,760
259,204
260,150
345,344
342,461
242,713
343,042
97,395
98,279
97,967
100,027
64,523
63,876
64,186
64,262
42,607
42,032
42,318
42,588
21,916
21,844
21,868
21,674
8,603
8,552
8,243
7,731
413
588
523
528
598
5,645
5,954
5,468
5,626
1,228
1,229
1,234
1,234
7,351
7,336
7,447
7,462
49,173
50,112
49,371
49,365
63,562
64,688
64,154
64,398
18,375
19,677
19,627
19,426
14,843 10,160
14,430 9,859
14,786 10,167
14,800 10,105
4,683
4,571
4,619
4,695
3
10
17
24
31
9,129
9,854
9,943
11,322
11,491
10
860
180
2,585
2,338
2,451
2,299
2,419
5,997
5,833
5,987
5,535
6,138
1,320
1,320
1.323
1.324
1,324
7,902
7,785
7,868
7,861
7,911
59,576
60,912
59,552
59,971
60,347
72,867
74,717
73,239
73,758
74,593
21,467
21,410
20,572
21,084
20,557
21,096
20,860
20,569
20,529
20,384
13,300
13,266
13,241
13,074
12,844
7,796
7,594
7,328
7,455
7,540
7*
14*
13,092
12,536
10,286
11,097
1,491
325
258
2,417
2,405
2,482
2,524
5,744
5,503
6,274
6,214
1,324
1,323
1,320
1,320
7,901
8,017
8,009
8,001
62,023
60,237
59,819
60,298
76,942
74,861
74,701
74,777
19,362
20,478
20,706
21,071
20,026
20,428
20,850
20,830
12,443
12,724
12,964
12,985
7,583
7,704
7,886
7,845
25,833
23,700
24,501
23,634
919
25
118
255
1,593 10,057
1,545 9,360
1,498 9,513
1,559 9,445
2.964
2,962
2.965
2,974
21,747
21,647
21,659
21,722
166,532
168,858
167,512
167,972
233,491
235,785
234,684
236,333
74,338
78,439
76,641
78,018
28,076
28,454
28,915
29,098
17,719
17,897
18,233
18,357
10,357
10,557
10,682
10,741
33,062
32,879
33,460
32,186
33,786
541
317
1,118
1,960
1,497
3,228
3,322
3,376
3,428
3,609
11,586
11,846
11,768
11,560
11,618
3,298
3.288
3,282
3,284
3.289
23,335
23,309
23,234
23,342
23,423
200,179
202,471
199,243
198,608
198,968
267,123
269,955
265,967
266,117
267,014
76,1
78,442
77,414
76,962
79,053
46,406
45,905
45,718
45,774
45,080
31,912
31,483
31,193
31,018
30,578
14,494
14,422
14,525
14,756
14,502
36,454
39,140
38,510
37,318
531
2,208
645
767
3,477
3,240
3,171
2,983
11,744
11,720
12,404
12,440
3.289
3.290
3,286
3,289
23,412
23,342
23,300
23,400
199,675
199,523
199,385
199,852
268,402
267,600
268,012
268,265
78,033
77,801
77,261
78,956
44,497
43,448
43,336
43,432
30,164
29,308
29,354
29,603
14,333
14,140
13,982
13,829
Nov.
8
15
22
29
Oct.
1973
Nov.
21*
28*
New York City
1972
Nov.
8
15
22
29
270
1973
Oct.
Nov.
21*
28*
Outside
New York City
1972
Nov.
8.
15.
22.
29.
1973
Oct.
Nov.
7*.
14*.
21*.
28*.
1 Includes securities purchased under agreements to resell.
Includes official institutions and so forth.
Includes short-term notes and bills.
Federal agencies only.
5 Includes corporate stock.
•7 Includes U.S. Govt, and foreign bank deposits, not shown separately.
Includes securities sold under agreements to repurchase.
2
3
4
8 Includes minority interest in consolidated subsidiaries.
9
Exclusive of loans and Federal funds transactions with domestic commercial
banks.
10
All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
n Certificates of deposit issued in denominations of $100,000 or more.
D E C E M B E R 1973 • B U S I N E S S LOANS OF B A N K S
A 29
COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding
Net change during 1973
1973
Industry
Nov.
28
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment.. .
Other fabricated metal products. . .
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco
Textiles, apparel, and leather
Petroleum refining
Chemicals and rubber
Other nondurable goods
Mining, including crude petroleum
and natural gas
Trade: Commodity dealers
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans
Bankers' acceptances
Foreign commercial and industrial
loans
Total classified loans
Nov.
21
Nov.
14
Nov.
7
Oct.
31
Nov.
Oct.
1973
Sept.
III
II
I
1973
1972
1st
half
2nd
half
1,956
6,240
2,346
2,326
3,729
1,985
6,260
2,354
2,362
3,736
1,990
6,202
2,320
2,334
3,768
1,975
6,152
2,378
2,316
3,823
1,978
6,112
2,361
2,308
3,855
-22
128
-15
18
-126
-78
-423
-69
-10
-211
73
179
-77
55
162
18
479
272
56
290
-102
645
32
267
323
122
808
32
236
549
20
1,453
64
503
872
-79
395
-258
57
69
3,895
3,340
1,094
2,470
2,171
3,891
3,398
1,101
2,489
2,158
3,759
3,469
1,117
2,521
2,186
3,728
3,478
1,133
2,525
2,166
3,677
3,475
1,181
2,559
2,185
218
-135
-87
-89
-14
-140
-184
-26
-155
-25
121
15
-38
69
76
393
235
19
48
156
-194
275
-7
63
157
171
455
218
746
203
-23
730
211
809
360
827
-166
-14
-262
30
3,804
1,761
5,323
6,476
5,799
1,892
5,518
5,577
10,711
7,865
1,218
3,812
1,717
5,334
6,470
5,787
1,875
5,526
5,591
10,646
7,811
1,232
3,804
1,570
5,415
6,524
5,865
1,920
5,363
5,606
10,607
7,825
1,172
3,837
1,590
5,409
6,521
5,847
1,960
5,340
5,612
10,553
7,863
1,211
3,889
1,425
5,348
6,403
5,824
2,007
5,197
5,648
10,515
7,835
1,233
-85
336
-25
73
-25
-115
321
-71
196
30
-15
-148
213
84
146
-126
-97
-84
-156
24
-134
158
33
-92
81
161
22
55
598
-10
103
-24
-68
77
-42
43
165
66
-13
734
212
362
380
-322
-603
183
457
283
79
670
624
455
782
76
331
63
384
635
11
179
291
304
542
972
-230
331
-540
567
1,092
294
258
961
928
997
1,754
-154
25
622
216
473
-42
424
939
364
494
239
100
4,018
89,529
4,006
89,541
3,961
89,298
4,005
89,422
3,996
89,011
22
-54
518 - 1 , 4 9 5
-139
1,355
-384
3,244
-18
4,447
572
7,594
554
12,041
491
4,944
Total commercial and industrial loans
*107,425 f107,381 fl07,124 fl07,041 *106,699
of large commercial banks
726 - 1 , 5 3 4
1,386
3,370
4,998
8,762
13,760
6,149
See
NOTE
to table below.
"TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding
Net change during—
1973
1972
1973
I
IV
1st
half
1973
Industry
Nov.
28
Durable goods manufacturing:
Primary metals
Machinery
Transportation equipment.
Other fabricated metal
products
Other durable goods
Nondurable goods manufacturing:
Food, liquor, and tobacco.
Textiles,
apparel,
and
leather
Petroleum refining
Chemicals and rubber
Other nondurable g o o d s . .
Mining, including crude petroleum and natural gas.
Trade: Commodity dealers..
Other wholesale
Retail
Transportation
Communication
Other public utilities
Construction
Services
All other domestic loans . . . .
Foreign commercial and industrial loans
Total loans
Oct.
31
Sept.
26
Aug.
29
July
25
June
27
May
30
Apr.
25
III
II
1,240
2,729
1,251
1,260
2,734
1,233
1,311
2,680
1,261
1,294
2,638
1,226
1,293
2,664
1,193
1,328
2,641
1,189
1,314
2,560
1,168
1,315
2,555
1,180
1,335
2,313
1,174
-17
39
72
-7
328
15
67
159
-31
-35
249
-102
60
487
-16
902
1,741
891
1,782
863
1,777
846
1,730
861
1,720
869
1,690
833
1,592
842
1,614
785
1,520
-6
87
84
170
65
281
41
51
149
451
1,466
1,465
1,472
1,405
1,410
1,393
1,372
1,355
1,350
79
43
116
155
159
1,036
839
1,509
1,058
1,030
883
1,535
1,076
1,026
920
1,553
1,092
1,021
925
1,494
1,069
1,003
947
1,486
1,050
969
876
1,481
1,063
942
885
1,441
1,063
978
858
1,459
1,108
892
842
1,479
1,100
57
44
72
29
77
34
2
-37
169
144
326
206
12
19
-6
-24
246
178
328
169
2,950
135
1,171
2,226
4,199
828
3,114
1,935
4,899
2,616
2,958
120
1,224
2,179
4,214
819
2,853
1,952
4,752
2,552
2,990
116
1,178
2,145
4,272
857
2,829
1,992
4,701
2,585
2,921
115
1,149
2,136
4,287
835
2,671
2,000
4,646
2,458
3,022
178
1,118
2,066
4,255
814
2,548
2,009
4,568
2,389
2,846
123
1,066
2,006
4,305
785
2,409
1,896
4,562
2,201
2,908
139
1,051
1,979
4,161
760
2,328
1,852
4,402
2,180
2,895
136
1,068
1,947
4,202
738
2,343
1,800
4,417
2,061
2,872
150
1,055
1,823
4,234
746
2,234
1,709
4.339
1,871
144
-7
112
139
-33
72
420
96
139
384
-26
-27
11
183
71
39
175
187
223
330
187
29
161
231
54
64
259
151
313
274
6
14
30
148
94
121
287
8
164
43
161
2
172
414
125
103
434
338
536
604
2,306
2,308
2,186
2,292
2,497
2,585
2,647
2,410
2,567
-399
18
201
223
219
*40,150 p 39,820 *39,806 *39,158 *39,091 *38,283 p 37,577
37,281
36,390
1,523
1,893
3,426
1,498
5,319
NOTE.—About 160 weekly reporting banks are included in this series;
these banks classify, by industry, commercial and industrial loans amounting to about 90 per cent of such loans held by all weekly reporting banks
and about 70 per cent of those held by all commercial banks.
For description of series see article "Revised Series on Commercial apd
Industrial Loans by Industry," Feb. 1967 BULLETIN, p. 209.
Mar.
28
Commercial and industrial "term" loans are all outstanding loans with
an original maturity of more than 1 year and all outstanding loans granted
under a formal agreement—revolving credit or standby—on which the
original maturity of the commitment was in excess of 1 year.
A 30
D E M A N D D E P O S I T O W N E R S H I P • D E C E M B E R 1973
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS 1
(In billions of dollars)
rype of holder
Class of bank, and quarter or month
Nonfinancial
business
Consumer
1970—Sept
Dec
17.0
17.3
88.0
92.7
51.4
53.6
1.4
1.3
10.0
10.3
167.9
175.1
1971—Mar
Sept
Dec
18.3
18.1
17.9
18.5
86.3
89.6
91.5
98.4
54.4
56.2
57.5
58.6
1.4
1.3
1.2
1.3
10.5
10.5
9.7
10.7
170.9
175.8
177.9
187.5
June
Sept
Dec
17.9
18.0
18.9
97.6
101.5
109.9
60.5
63.1
65.4
1.4
1.4
1.5
11.0
11.4
12.3
188.4
195.4
208.0
1973—Mar
June
Sept
18.6
18.6
18.2
102.8
106.6
108.4
65.1
67.3
69.2
1.7
2.0
2.1
11.8
11.8
11.9
200.0
206.3
210.4
Foreign
All
other
Total
deposits,
IPC
Financial
business
A11 commercial banks:
1972
Weekly reporting banks:
1971
Dec
14.4
58.6
24.6
1.2
5.9
104.8
1972
Oct
14.1
14.5
14.7
60.0
60.5
64.4
26.2
26.7
27.1
1.3
1.3
1.4
6.1
6.2
6.6
107.8
109.2
114.3
15.0
14.3
14.4
14.3
13.8
14.2
14.8
14.3
14.5
15.0
63.1
60.3
59.0
59.4
59.1
60.8
61.1
59.5
60.6
61.7
27.8
26.3
26.5
28.6
26.9
27.1
27.3
27.3
27.2
27.3
1.4
1.6
1.6
1.8
1.9
1.9
1.9
1.9
1.9
2.0
6.8
6.5
6.4
6.4
6.4
6.3
6.6
6.1
6.5
6.6
114.1
109.0
107.9
110.4
108.0
110.2
111.7
109.1
110.8
112.5
Dec
1973—Jan
Feb
Mar
Apr
June
July
Aug
Sept
Oct?
1
Including cash items in process of collection.
NOTE.—Daily-average balances maintained during month as estimated
from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
BULLETIN, p. 466.
DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions of dollars)
Class of
bank
All commercial
Insured
National member
State member
All member
Dec. 31,
1971
680
677
387
95
482
Dec. 31,
1972
559
554
311
71
381
Mar. 28,
1973
556
314
72
385
June 30,
1973
538
533
304
71
375
i Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B U L L E T I N for
July 1972, p. 626. Categories shown here as "Other large" and "All other
member" parallel the previous "Reserve City" (other than in New York
City and the City of Chicago) and "Country" categories, respectively
(hence the series are continuous over time).
Class of
bank
All member—Cont. 1
Other large banks
All other member *
All nonmember
Insured
Noninsured
Dec. 31,
1971
112
371
197
195
2
Dec. 31,
1972
69
313
177
172
5
Mar. 28,
1973
67
318
171
June 30,
1973
63
312
163
158
5
NOTE.—These hypothecated deposits are excluded from "Time deposits"
and "Loans" at commercial banks, as shown in the tables on pp. A-18,
A-19, and A-24-A-28 (consumer instalment loans), and in the table at the
bottom of p. A-17. These changes resulted from a change in Federal
Reserve regulations. See June 1966 BULLETIN, p. 808.
These deposits have not been deducted from "Time deposits" and
"Loans" for commercial banks as shown on pp. A-20 and A-21 and on
pp. A-22 and A-23 (IPC only for time deposits).
A 31
DECEMBER 1973 • LOAN SALES BY BANKS; OPEN MARKET PAPER
LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates
To all others except banks
By type of loan
By type of loan
Date
Total
Total
Commercial
and
industrial
All other
Commercial
and
industrial
All other
1
8
15
22
29
4,120
4,142
4,527
4,602
4,741
2,479
2,443
2,723
2,708
2,895
1,641
1,699
1,804
1,894
1,846
1,694
1,795
1,792
1,738
1,750
294
380
381
327
323
1,400
1,415
1,411
1,411
1,427
Sept.
5
12
19
26' , ,
4,672
4,453
4,748
4,637
2,816
2,713
2,841
2,877
1,856
1,740
1,907
1,760
1,743
1,783
1,777
1,764
326
355
356
353
1,417
1,428
1,421
1,411
Oct.
3
10
17
24
31
4,723
4,606
4,538
4,518
4,645
2,893
2,784
2,782
2,825
2,857
1,830
1,822
1,756
1,693
1,788
1,760
1,806
1,788
1,774
r
l,768
356
351
351
338
r
333
1,404
1,455
1,437
1,436
r
l,435
Nov.
7
14 . . .
21
28
4,317
4,315
4,336
4,342
2,591
2,540
2,656
2,655
1,726
1,775
1,680
1,687
1,772
1,779
1,783
1,777
343
333
331
329
1,429
1,446
1,452
1,448
1973—Aug.
NOTE.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold
by banks other than large weekly reporting banks.
COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances
Commercial and finance
company paper
Placed through
dealers
End of period
Held b y -
Placed
directly
Total
Total
Bank
Bank
related Other 1 related Other 2
Accepting banks
Total
Based on—
F.R. Banks
Own
bills
Bills
bought
Own
acct.
Foreign
corr.
Others
ImExports
ports
from
into
United United
States States
All
other
1,626
1969
197 0
197 1
9,300
13,645
17,085
21,173
32,600
33,071
32,126
1,903
3,089
4,901
7,201
1,216 10,601
409 12,262
495 10,923
7,397
10,556
12,184
13,972
3,078 17,705
1,940 18,460
1,478 19,230
3,392
3,603
4,317
4,428
5,451
7,058
7,889
1,223
1,198
1,906
1,544
1,567
2,694
3,480
1,094
983
1,447
1,344
1,318
1,960
2,689
129
215
459
200
249
735
791
187
193
164
58
64
57
261
144
191
156
109
146
250
254
1,837
2,022
2,090
2,717
3,674
4,057
3,894
792
997
1,086
1,423
1,889
2,601
2,834
974
829
989
952
1,153
1,561
1,546
1,778
2,241
2,053
2,408
2,895
3,509
1972—Oct..
Nov.
Dec.
35,651
35,775
34,721
821 12,737
876 12,345
930 11,242
1.708 20,385
1.709 20,845
1,707 20,842
6,748
6,864
6,898
2,394
2,529
2,706
1,881
1,995
2,006
514
535
700
70
63
106
219
199
179
4,065
4,073
3,907
2,585
2,621
2,531
1,786
1,844
1,909
2,377
2,400
2,458
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
35,727
35,196
34,052
34,404
35,672
35,786
35,463
37,149
37,641
41,602
911 11,641
956 9,968
993 8,366
1,044 8,290
1,148 8,288
1,173 8,316
1,207 7,954
1,350 7,676
1,353 8,845
1,319 11,727
1,795
2,160
2,463
2,767
2,922
3,110
3,307
3,758
3,878
3,549
6,564
6,734
6,859
6,713
6,£
7,237
7,693
7,734
8,170
8,237
2,384
2,328
2,269
2,068
2,197
2,185
2,254
1,968
2,099
2,042
1,825
1,765
1,777
1,641
1,763
1,746
1,803
1,598
1,629
1,731
560
563
492
427
433
439
452
370
470
311
141
233
165
136
83
66
132
84
145
107
198
239
282
344
384
395
496
522
548
589
3,841
3,934
4,143
4,165
4,225
4,591
4,810
5,159
5,379
5,499
2,337
2,311
2,091
1,996
2,009
2,053
2,222
2,268
2,296
2,345
1,948
2,113
2,399
2,359
2,509
2,755
2,954
2,945
3,289
3,222
2,279
2,310
2,368
2,359
2,371
2,428
2,517
2,520
2,585
2,670
196 5
196 6
196 7
196 8
21,380
22,112
22,230
22,303
23,314
23,187
22,995
24,365
23,565
25,007
1 As reported by dealers; includes finance company paper as well as
other commercial paper sold in the open market.
2 As reported by finance companies that place their paper directly with
investors.
NOTE.—Back data available from Financial Statistics Division, Federal
Reserve Bank of New York.
A 32
INTEREST RATES • DECEMBER 1973
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
-Jan.
Mar.
June
9
7
7V4
81/2
-Mar.
Sept. 21
Nov. 12
23
Dec. 22
8
71/2
71/4
7
6
15
61/2
-Jan.
Apr. 23
May 11
July
6
7
Oct. 20
514-51/2
51/2
51/2-6
6
53/4
Dec.
July
5i/ 4 --53/ 8
514.-53/851/2
5i/4«-5i/ 2
514.-53/85%
5V4m-5V8
5i/4»
51/4»-53/s
514.-53/851/i
514-53/8-
3..
10..
53/ 4 --5y 8
51/2"-55/g
51/2-
17.,
31.
51/4-5 Vi"
Aug. 11.
14.
6
514-53/85*4"
51/4-514514-
27
31
21.
25.
29.
MOTE.—Beginning Nov. 1971, several banks adopted a floating prime
rate keyed to money market variables. • denotes the predominate prime
rate quoted by commercial banks to large businesses.
Effective date
1973—June
8,
19
25
July
2
3,
9.
17.
18
23
30
Aug.
6,
7,
13
51/2--55/8
514.-55/ 8 _
53/4
2.
4.
11.
534-
16.
Nov.
53/4"
53/4«-57/8
6.
20.
534.-6
534-6.
Dec. 26.
27.
5._ 5 I/ 8 _51/ 4
55--51/8
5-51/4-
1
4
8
22
29
53/8-51/2-
Oct.
434.-5
5"
5--5V4
June 12..
26..
5 K - 5 % •
25.
43/8-4^43/4«
41/2-434,
43/44 3 4 . - 4 7/8-5
1..
30..
4.
5.
11.
4i4-43/ 4 ._5
Apr.
May
1972—Sept.
4y8-4y4-5m
Mar. 13.
23.
27.
61/4
6
53,4
51/4-51/2
51/4
5-51/8-514.
4%-5-5 1 / 4"
3.
17.
24.
31.
Feb. 28.
63/4
Feb. 16
Mar. 11
19
Nov.
1972—Jan.
Rate
Effective date
Rate
Effective date
Rate
1973—Jan.
4.
Feb.
2.
14.
26.
27.
21,
22,
28,
29
6.-614
6.
Sept. 14
18
27
Mar. 19
26
61/4--634
Oct. 22
24
'Apr. 18
19
61/2-634.
63/ 4 .
May
6 . - 6 V4
6%«
63/ 4 .-7
7-
4
7
24
25
7-71/4 •
Effective Apr. 16, 1973, with the adoption of a two tier or "dual prime
rate," this table shows only the "large-business prime rate." which is the
range of rates charged by commercial banks on short-term loans to large
businesses with the highest credit standing.
RATES ON BUSINESS LOANS OF BANKS
Size of loan (in thousands of dollars)
Aug.
1973
10-99
-9
All sizes
May
1973
Aug.
1973
May
1973
Aug.
1973
100-499
May
1973
Aug.
1973
1,000 and over
500-999
May
1973
Aug.
1973
May
1973
Aug.
1973
May
1973
Short-term
35 centers
New York City
7 Other Northeast
8 North Central
7 Southeast
8 Southwest
4 West Coast
9.24
9.08
9.49
9.24
9.25
9.16
9.25
7.35
7.04
7.71
7.44
7.37
7.33
7.25
8.95
8.93
9.30
8.21
8.85
9.10
9.67
8.05
8.05
8.36
7.70
8.03
7.98
8.31
9.25
9.32
9.51
9.02
9.07
9.18
9.48
7.85
7.76
8.08
7.70
7.80
7.74
7.98
9.50
9.37
9.95
9.44
9.23
9.34
9.46
7.61
7.38
7.89
7.58
7.53
7.48
7.71
9.31
9.20
9.72
9.28
9.02
9.18
9.33
7.35
7.14
7.77
7.34
7.11
7.28
7.28
9.14
9.03
9.22
9.21
9.48
9.03
9.17
7.19
6.97
7.52
7.40
7.16
7.08
7.06
7.45
7.28
7.55
7.57
7.03
8.11
7.36
9.32
9.34
10.30
9.42
7.48
10.11
9.10
7.25
7.18
7.33
7.24
7.13
7.54
7.23
9.19
9.25
9.59
9.48
9.14
9.64
8.95
7.17
7.06
7.45
7.39
7.79
7.12
7.93
7.55
8.12
8.22
8.50
7.66
7.66
9.48
9.63
8.68
10.00
11.25
9.71
9.25
7.74
7.70
7.95
7.57
9.39
7.68
7.57
9.94
10.03
10.24
9.63
9.37
10.40
9.80
7.60
7.25
8.28
7.65
8.58
7.82
7.71
Revolving credit
35 centers
New York C i t y . . .
7 Other Northeast.
8 North Central...
7 Southeast
8 Southwest
4 West Coast
9.22
9.25
9.72
9.44
8.90
9.72
9.00
7.14
7.07
7.45
7.40
7.19
7.79
7.17
9.48
8.97
9.90
9.55
9.57
8.78
9.36
7.89
7.82
8.43
8.15
7.53
7.75
7.97
9.46
9.11
9.98
9.34
9.41
9.34
9.51
7.82
7.36
7.63
7.85
7.73
7.83
7.95
9.34
9.18
10.35
9.17
9.39
9.54
9.28
Long-term
35 centers
New York City. . .
7 Other Northeast.
8 North Central...
7 Southeast
8 Southwest
4 West C o a s t . . . . .
9.82
9.96
9.87
9.70
8.44
10.12
9.71
7.66
7.30
8.17
7.73
8.39
7.79
7.69
9.43
8.75
9.68
8.60
9.16
10.19
9.97
8.14
7.20
8.55
8.04
7.18
8.39
8.73
NOTE.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on
Business Loans was revised. For description of revised series see pp. 468of the June 1 9 7 1 B U L L E T I N .
77
9.60
9.69
9.79
9.54
8.97
9.61
9.58
7.77
7.45
7.68
8.04
6.92
8.20
7.95
9.45
9.27
9.56
9.99
6.12
9.76
9.57
D E C E M B E R 1973 • I N T E R E S T R A T E S
A 33
MONEY MARKET RATES
(Per cent per annum)
U.S. Government securities 4
Prime
commercial
paper 1
1966
1967
1968
1969
CO.
Prime
bankers'
acceptances,
90 days i
Federal
funds
rate 3
3-month bills 5
6-month bills 5
4- to 6months
paper
placed
directly,
3- to 6months 2
5.55
5.10
5.90
7.83
5.42
4.89
5.69
7.16
5.36
4.75
5.75
7.61
5.11
4.22
5.66
8.22
4.881
4.321
5.339
6.677
4.86
4.29
5.34
6.67
5.082
4.630
5.470
6.853
5.06
4.61
5.47
6.86
5.07
4.71
5.46
6.79
5.17
4.84
5.62
7.06
5.16
5.07
5.59
6.85
Period
90-119
days
Finance
Rate
on new
issue
Market
yield
Rate
on new
issue
Market
yield
9-to 12-month issues
1-year
bill (market yield) 5
3- to 5year
issues 7
Other 6
1972
4.67
7.72
5.11
4.69
7.23
4.91
4.52
7.31
4.85
4.47
7.17
4.66
4.44
6.458
4.348
4.071
6.39
4.33
4.07
6.562
4.511
4.466
6.51
4.52
4.49
6.49
4.67
4.77
6.90
4.75
4.86
7.37
5.77
5.85
1972—Nov.
Dec.
5.18
5.40
5.25
5.45
5.13
5.24
5.01
5.16
5.06
5.33
4.774
5.061
4.78
5.07
5.079
5.287
5.09
5.30
5.20
5.28
5.22
5.46
6.03
6.07
1973—Jan,,
Feb,.
Mar.,
Apr.,
May,
June.
July.
Aug..
Sept.
Oct..
Nov.,
5.76
6.17
6.76
7.13
7.26
8.00
9.26
10.26
10.31
9.14
9.11
5.78
6.22
6.85
7.14
7.27
7.99
9.18
10.21
10.23
8.92
8.94
5.56
5.97
6.45
6.76
6.85
7.45
8.09
8.90
8.90
7.84
7.94
5.60
6.14
6.82
6.97
7.15
7.98
9.19
10.18
10.19
9.07
8.73
5.94
6.58
7.09
7.12
7.84
8.49
10.40
10.50
10.78
10.01
10.03
5.307
5.558
6.054
6.289
6.348
7.188
8.015
8.672
8.478
7.155
7.866
5.41
5.60
6.09
6.26
6.36
7.19
8.01
8.67
8.29
7.22
7.83
5.527
5.749
6.430
6.525
6.615
7.234
8.081
8.700
8.537
7.259
7.823
5.62
5.83
6.51
6.52
6.62
7.23
8.12
8.65
8.45
7.32
7.96
5.58
5.93
6.53
6.51
6.63
7.05
7.97
8.32
8.07
7.17
7.40
5.78
6.07
6.81
6.79
6.83
7.27
8.37
8.82
8.44
7.42
7.66
6.29
6.61
6.85
6.74
6.78
6.76
7.49
7.75
7.16
6.81
6.96
9.95
10.15
10.28
10.30
9.88
10.05
10.25
10.25
8.33
8.65
8.80
8.98
9.85
10.15
10.25
10.25
10.57
10.39
10.39
10.52
8.320
8.486
8.976
8.910
8.30
8.70
8.88
8.71
8.476
8.650
8.943
8.856
8.43
8.79
8.78
8.57
8.40
8.44
8.34
8.25
8.94
9.13
8.91
8.61
8.02
8.16
7.80
7.50
10.48
10.50
10.50
10.43
9.85
10.45
10.38
10.48
10.45
9.65
9.00
9.09
9.00
9.00
8.60
10.25
10.25
10.35
10.43
9.75
10.79
10.79
10.74
10.80
10.84
8.668
8.778
9.016
8.786
7.331
8.62
8.80
8.94
8.38
7.13
8.577
8.735
8.921
8.832
7.661
8.58
8.75
8.97
8.52
7.63
8.22
8.19
8.45
8.10
7.57
8.53
8.51
8.78
8.59
7.90
7.35
7.27
7.45
7.10
6.85
1970
1971
Week ending—
1973—Aug.
4 . . ..
18
25
Sept.
j
22
29
Oct.
6
13
20.....
27
9.58
9.47
9.25
8.66
9.38
9.13
9.03
8.56
8.10
8.00
7.80
7.66
9.50
9.28
9.00
8.81
10.72
9.87
10.07
9.98
7.149
7.323
7.188
6.959
7.42
7.14
7.16
7.07
7.584
7.259
7.242
6.951
7.59
7.32
7.24
7.09
7.52
7.26
7.15
6.85
7.66
7.46
7.40
7.26
6.89
6.77
6.80
6.80
Nov.
3 , .
10 . ,
17 .
24 .
8.55
8.88
9.18
9.28
8.28
8.69
9.08
9.09
7.50
7.63
8.10
8.16
8.50
8.75
8.75
8.75
9.90
9.71
10.03
10.23
7.196
8.098
8.636
7.704
7.38
8.12
8.11
7.72
7.263
7.987
8.381
7.805
7.43
8.06
8.30
7.85
6.99
7.42
7.64
7.37
7.32
7.85
8.01
7.50
6.83
7.03
7.16
6.90
9.25
9.10
8.05
8.75
10.09
7.695
7.52
7.679
7.77
7.29
7.36
6.79
Dec.
1
1 Averages of the most representative daily offering rate quoted by
dealers.
2
Averages of the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Seven-day averages for week ending Wednesday. Beginning with
statement week ending July 25, 1973, weekly averages are based on the
daily average of the range of rates on a given day weighted by the volume
of transactions at these rates. For earlier statement weeks, the averages
were based on the daily effective rate—the rate considered most repre-
sentative of the day's transactions, usually the one at which most transactions
occurred.
4
Except for new bill issues, yields are averages computed from daily
closing
bid
prices.
5
Bills quoted on bank-discount-rate basis.
67 Certificates and selected note and bond issues.
Selected note and bond issues.
NOTE.—Figures for Treasury bills are the revised series described on p.
A - 3 5 o f t h e O c t . 1 9 7 2 BULLETIN.
INTEREST RATES • D E C E M B E R 1973
A 34
BOND A N D STOCK YIELDS
(Per cent per annum)
Corporate bonds
Government bonds
Aaa utility
State and local
Period
United
States
(longterm)
Stocks
By selected
rating
Dividend/
price ratio
By
group
Earnings/
price ratio
Total 1
Total i
Aaa
Baa
New
issue
Recently
offered
Baa
Industrial
Railroad
Public
utility
Preferred
Common
Common
Seasoned issues
4.50
4.57
4.26
4.40
4.86
4.83
4.42
4.52
4.65
4.67
4.41
4.53
4.30
4.32
3.17
3.01
5.68
5.54
4.51
5.38
5.79
6.47
7.64
4.64
5.34
5.82
6.51
7.36
4.49
5.13
5.51
7.03
4.87
5.67
6.23
6.94
7.81
4.61
5.30
5.74
6.41
7.22
4.72
5.37
5.89
6.77
7.46
4.60
5.36
5.81
6.49
7.49
4.33
4.97
5.34
5.78
6.41
3.00
3.40
3.20
3.07
3.24
5.87
6.72
5.71
5.64
6.08
8.68
7.62
7.31
8.71
7.66
7.34
8.51
7.94
7.63
8.04
7.39
7.21
9.11
8.56
8.16
8.26
7.57
7.35
8.77
8.38
7.99
8.68
8.13
7.74
7.22
6.75
7.27
3.83
3.14
2.84
6.51
5.40
5.37
5.39
7.09
7.15
7.21
7.21
7.52
7.47
7.12
7.08
7.99
7.93
7.28
7.22
7.95
7.91
7.55
7.48
6.93
6.92
2.73
2.70
5.46
4.90
4.95
5.07
4.95
4.90
5.05
5.21
5.26
4.90
4.76
5.03
5.39
5.44
5.58
5.42
5.41
5.51
5.71
5.80
5.41
5.31
5.46
7.38
7.40
7.49
7.46
7.51
7.64
8.01
8.36
7.88
7.90
7.90
7.37
7.42
7.54
7.47
7.50
7.64
7.97
8.22
7.99
7.94
7.94
7.49
7.57
7.62
7.62
7.62
7.69
7.80
8.04
8.06
7.96
8.02
7.15
7.22
7.29
7.26
7.29
7.37
7.45
7.68
7.63
7.60
7.67
7.90
7.97
8.03
8.09
8.06
8.13
8.24
8.53
8.63
8.41
8.42
7.27
7.34
7.43
7.43
7.41
7.49
7.59
7.91
7.89
7.76
7.81
7.87
7.92
7.94
7.98
7.51
7.61
7.64
7.64
7.63
7.69
7.81
8.06
8.09
8.04
6.85
6.91
7.03
7.11
7.13
7.25
7.35
7.43
7.38
7.18
7.40
2.69
2.80
2.83
2.90
3.01
3.06
3.04
3.16
3.13
3.05
3.36
5.03
4.98
5.02
5.10
4.70
4.70
4.75
4.90
5.40
5.25
5.30
5.30
7.75
7.96
7.99
7.97
7.90
7.88
7.98
7.98
7.98
7.94
7.94
7.97
7.59
7.56
7.58
7.64
8.44
8.40
8.40
8.41
7.78
7.73
7.73
7.76
8.27
8.24
8.23
8.22
8.06
7.19
7.10
7.08
7.27
3.06
3.05
3.03
3.03
6.27
6.33
6.35
6.29
5.15
5.24
5.29
5.20
4.95
5.05
5.10
5.05
5.40
5.50
5.55
5.45
7.76
8.00
7.98
7.86
7.97
8.03
7.99
7.86
7.99
8.01
8.03
8.02
7.65
7.67
7.69
7.68
8.43
8:43
8.42
8.42
7.79
7.80
7.82
7.81
8.24
8.27
8.29
8.29
8.10
8.11
8.12
8.12
7.24
7.31
7.35
7.44
3.10
3.17
3.31
3.41
6.27
5.16
5.00
5.40
7.85
7.87
8.01
7.64
8.42
7.81
8.30
8.09
7.51
3.55
12
20
121
20
30
30
40
14
500
196 3
196 4
4.00
4.15
3.28
3.28
3.06
3.09
3.58
3.54
4.21
4.34
196 5
1966
1967
196 8
1969
4.21
4.66
4.85
5.25
6.10
3.34
3.90
3.99
4.48
5.73
3.16
3.67
3.74
4.20
5.45
3.57
4.21
4.30
4.88
6.07
4.50
5.43
5.82
6.50
7.71
197 0
197 1
1972
6.59
5.74
5.63
6.42
5.62
5.30
6.12
5.22
5.04
6.75
5.89
5.60
1972—No v
Dec
5.50
5.63
5.11
5.13
4.91
4.91
1973—Ja n
Feb
Mar.. . .
Apr
May.
June
July
Aug
Sept
Oct
Nov. . . .
5.94
6.14
6.20
6.22
6.32
6.53
6.81
6.42
6.26
6.31
5.13
5.17
5.30
5.17
5.13
5.25
5.44
5.51
5.13
5.03
5.21
6.
13.
20.
27.
6.27
6.20
6.27
6.28
Nov. 3.
10.
17.
24.
Dec. 1.
6.11
6.18
8.01
8.07
8.17
8.32
8.37
8.24
8.28
8.11
6.10
6.94
Week ending—
1973—Oct.
Number 2of
issues .. .
1 Includes bonds rated Aa and A, data for which are not shown separately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 Number of issues varies over time; figures shown reflect most recent
count.
NOTE.—Annual yields are averages of monthly or quarterly data.
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt.: Averages of daily figures for bonds maturing or callable in 10 years
or more; from Treasury Dept. (2) State and local govt.: General obligations
Notes to tables on opposite
8.01
8.02
8.06
500
only, based on Thurs. figures; from Moody's Investor Service. (3) Corporate: Rates for "New issue" and "Recently offered" Aaa utility bonds
are weekly averages compiled by the Board of Governors of the Federal
Reserve System. Rates for seasoned issues are averages of daily figures
from Moody's Investors Service.
Stocks: Standard and Poor's corporate series. Dividend/price ratios
are based on Wed. figures; earnings/price ratios are as of end of period.
Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and 2 public utility; common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.
page:
Security Prices:
Terms on Mortgages:
i Through Aug. 1973 the index is based upon an initial value of 10.90—
the average price of a share of stock listed on the American Stock Exchange
was $10.90 on June 30, 1965. As of Sept. 1973, a new market-value index
with a starting value of 100.00 replaced the previous series. An index for
past periods is being calculated on the new market-value basis and will be
published as it becomes available.
i Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, which provide
added income to the lender and are paid by the borrower. They exclude
any closing costs related solely to transfer of property ownership.
NOTE.—Annual data are averages of monthly figures. Monthly and
weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-34 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor's Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks, derived from component common stock prices. Average daily volume of trading, normally
conducted 5 days per week for 5*/£ hours per day, or 27 Vi hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31,22; 1969—Jan. 3-July 3, 20; July 7-Dec. 3122Vi; 1970—Jan. 2-May 1, 25.
NOTE.—Compiled by Federal Home Loan Bank Board in cooperation
with Federal Deposit Insurance Corporation. Data are weighted averages
based on probability sample survey of characteristics of mortgages
originated by major institutional lender groups (including mortgage
companies) for purchase of single-family homes. Data exclude loans for
refinancing, reconditioning, or modernization; construction loans to
homebuilders; and permanent loans that are coupled with construction
loans to owner-builders. Series revised beginning Jan. 1973; hence data are
not strictly comparable with earlier figures. See also the table on HomeMortgage Yields, p. A-53.
D E C E M B E R 1973 • S E C U R I T Y
MARKETS
A 35
S E C U R I T Y PRICES
Common stock prices
New York Stock Exchange
Bond prices
(per cent of par)
Standard and Poor's index
(1941-43=10)
Period
American
Stock
Exchange
total
index 1
New York Stoek Exchange index
(Dec. 31, 1965 = 50)
U.S.
Govt,
(longterm)
State
and
local
Corporate
AAA
Total
Industrial
Railroad
Public
utility
1963.
1964.
86.31
84.46
111.3
111.5
96.8
95.1
69.87
81.37
73.39
86.19
37.58
45.46
64.99
69.91
1965.
1966.
1967.
1968.
1969.
83.76
78.63
76.55
72.33
64.49
110.6
102.6
100.5
93.5
79.0
93.9
86.1
81.8
76.4
68.5
88.17
85.26
91.93
98.70
97.84
93.48
91.09
99.18
107.49
107.13
46.78
46.34
46.72
48.84
45.95
76.08
68.21
1970,
1971 .
1972.
60.52
67.73
68.71
72.3
80.0
84.4
61.6
65.0
65.9
83.22
98.29
109.20
91.29
108.35
121.79
1972-- N o v
Dec
69.87
68.68
87.1
87.1
65.9
66.0
115.05
117.50
1973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
65.89
64.09
63.59
64.39
63.43
62.61
60.87
58.71
61.81
63.13
62.71
86.9
86.1
84.1
85.7
86.1
85.8
83.2
82.2
86.2
86.9
85.6
63.02
62.50
62.33
62.88
63.01
Industrial
Total
Transportation
Utility
Finance
Volume of
trading in
stocks
(thousands of
shares)
NYSE AMEX
8.52
9.81
4,573
4,888
1,269
1,570
66.42
62.64
44.16
50.77
55.37
54.67
43.79
51.97
58.00
57.45
48.23
53.51
50.58
46.96
44.77
45.43
44.19
42.80
44.43
49.82
65.85
70.49
12.05
14.67
19.67
27.72
28.73
6,174
7,538
10,143
12,971
11,403
2,120
2,752
4,508
6,353
5,001
32.13
41.94
44.11
54.48
59.33
56.90
45.72
54.22
60.29
48.03
57.92
65.73
32.14
44.35
50.17
37.24
39.53
38.48
54.64
70.38
78.35
22.59
25.22
27.00
10,532
17,429
16,487
3,376
4,234
4,447
128.29
131.08
42.41
45.23
61.16
61.73
62.99
64.26
68.29
69.96
47.50
48.44
41.81
42.28
84.57
83.45
26.18 20,282
26.50 18,146
4,286
4,775
66.0
65.5
65.2
64.9
64.7
64.4
63.8
61.0
61.3
62.1
62.1
118.42 132.55
114.16 128.50
112.42 126.05
110.27 123.56
107.22 119.95
104.75 117.20
105.83 118.65
103.80 116.75
105.61 118.52
109.84 123.42
102.03 114.64
42.87
40.80
39.29
35.88
36.14
34.35
35.22
33.76
35.49
38.24
39.74
60.01
57.52
55.94
55.34
55.43
54.37
53.31
50.14
52.31
53.22
48.30
64.38
61.52
60.15
58.67
56.74
55.14
56.12
55.33
56.71
59.26
54.59
70.55
67.67
66.20
64.41
62.22
60.52
61.53
61.09
62.25
65.29
60.15
45.14
42.34
40.92
40.57
36.66
33.72
34.22
33.48
35.82
39.03
36.31
41.72
39.95
39.13
38.97
39.01
37.95
37.68
35.40
36.79
37.47
34.73
81.62
74.47
72.32
69.42
65.33
63.52
68.95
68.26
72.23
74.98
67.85
25.35
25.34
24.59
24.02
23.12
22.44
22.89
23.03
101.88
107.97
99.91
18.752
16.753
15,564
13,900
15,329
12,796
14,655
14,761
17,320
18,387
19,044
4,046
3,690
2,966
2,981
3,043
2,316
2,522
1,796
2,055
3,388
3,693
85.8
85.8
84.8
86.0
62.4
62.1
62.0
62.2
108.71
105.72
103.51
99.64
122.22
118.77
116.36
111.96
38.73
40.03
40.46
39.20
51.88
50.38
48.61
47.00
58.49
56.74
55.37
53.16
64.58
62.61
61.09
58.52
38.34
37.71
36.88
35.15
36.61
35.81
34.92
34.02
73.30
70.37
68.72
66.28
108.28
104.60
101.23
96.46
17,343
17,422
21,865
19,098
2,838
2,907
3,836
3,312
85.8
62.2
96.64
108.50
39.60
45.74
51.53
56.61
34.66
33.40
63.98
93.59
18,764
3,281
68.10
Week ending—
1973-- N o v .
Dec.
3
10, . .
17
24
1
For notes see opposite page.
T E R M S O N C O N V E N T I O N A L FIRST M O R T G A G E S
New homes
Contract
rate
(per
cent)
Fees &
charges
(per
cent)*
Maturity
(years)
Loan /
price
ratio
(per
cent)
Existing homes
PurLoan
chase
amount
price
(thous.
(thous. of dollars)of
dollars)
Contract
rate
(per
cent)
Fees &
charges
(per
cent) i
Maturity
(years)
Loan /
price
ratio
(per
cent)
PurLoan
chase
amount
price
(thous.
of
(thous. of dollars)
dollars)
196 5
196 6
196 7
196 8
196 9
5.74
6.14
6.33
6.83
7.66
.49
.71
.81
.89
.91
25.0
24.7
25.2
25.5
25.5
73.9
73.0
73.6
73.9
72.8
25.1
26.6
28.0
30.7
34.1
18.3
19.2
20.4
22.4
24.5
5.87
6.30
6.40
6.90
7.68
.55
.72
.76
.83
.88
21.8
21.7
22.5
22.7
22.7
72.7
72.0
72.7
73.0
71.5
21.6
22.2
24.1
25.6
28.3
15.6
15.9
17.4
18.5
19.9
1970
197 1
1972
8.27
7.60
7.45
1.03
.87
.88
25.1
26.2
27.2
71.7
74.3
76.8
35.5
36.3
37.3
25.2
26.5
28.1
8.20
7.54
7.38
.92
.77
.81
22.8
24.2
25.7
71.1
73.9
76.0
30.0
31.7
33.4
21.0
23.1
25.0
1972—Nov..
Dec..
7.50
7.51
.90
.92
27.5
27.5
77.4
78.0
37.1
37.9
28.1
29.0
7.44
7.45
.83
.86
26.2
26.4
76.7
76.8
33.7
34.0
25.3
25.7
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct.'
Nov..
7.52
7.52
7.51
7.53
7.55
7.62
7.69
7.77
7.98
8.12
8.19
1.03
1.15
1.09
1.11
1.05
1.08
1.11
1.08
1.19
1.20
1.06
25.7
26.8
26.6
26.6
25.9
26.3
26.3
26.7
26.6
26.1
26.1
76.6
78.6
78.4
78.2
77.7
78.0
78.1
76.7
77.3
76.9
75.3
35.8
35.9
36.7
36.9
35.6
35.8
37.0
38.6
37.2
38.5
38.9
27.0
27.6
28.3
28.2
27.2
27.5
28.3
28.9
28.2
29.0
28.8
7.53
7.55
7.54
7.55
7.62
7.64
7.70
7.87
8.10
8.35
8.40
.94
1.03
.95
.96
.93
.92
.91
.92
.97
.92
.94
23.2
23.6
23.3
23.9
23.5
23.4
24.1
23.4
23.1
22.5
22.5
75.2
77.5
76.9
77.3
77.5
75.9
75.5
75.6
74.1
72.7
71.3
30.5
29.2
29.3
30.1
30.0
31.7
33.3
32.0
32.8
31.8
32.9
22.6
22.0
22.0
22.8
22.3
23.5
24.6
23.6
23.5
22.6
23.0
For notes see opposite page.
A 36
STOCK MARKET CREDIT • D E C E M B E R 1973
STOCK MARKET CUSTOMER FINANCING
(In millions of dollars)
Margin credit at brokers and banks
Regulated
2
Unregulated 3
By source
End of period
By type
Margin stock
Total
1
Convertible
bonds
Subscription
issues
Other
security
credit
at banks 4
Nonmargin
stock
credit at
banks
Brokers Banks
Brokers Banks Brokers Banks Brokers Banks
9,091
9,024
9,068
9,045
1972—Sept..
Oct...
Nov..
Dec..
8,840
1973—Jan...
Feb...
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
r
8,640
r
8,347
8,165
7,650
7,287
Free credit balances
at brokers 5
Margin
accts.
Cash
accts.
8,083
8,081
8,166
8,180
,008
943
902
865
7,800
7,800
7,890
7,900
937
872
831
798
248
250
249
254
54
53
52
50
35
31
27
26
1,871
1,875
1,871
1,896
1,255
1,351
1,396
1,528
380
389
390
414
1,677
1,708
1,828
1,957
7,975
865
867
879
872
866
871
7,700
7,480
7,197
7,040
6,540
6,180
6,010
5,830
5,730
796
800
813
804
802
800
249
248
244
232
224
215
216
210
204
48
50
48
49
47
53
26
25
24
21
20
21
17
16
15
1,940
1,954
1,917
1,969
2,010
1,964
1,484
1,508
1,566
1,482
1,502
413
431
442
389
413
396
379
348
379
1,883
1,770
1,719
1,536
1,564
1,472
1,542
1,462
1,632
r
7,773
r
7,468
7,293
6,784
6,416
6,243
6,056
5,949
1
Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (see
Dec. 1970 BULLETIN). Credit extended by brokers is end-of-month data
for member firms of the New York Stock Exchange. June data for banks
are universe totals; all other data for banks represent estimates for all
commercial banks based on reports by a reporting sample, which accounted for 60 per cent of security credit outstanding at banks on June 30,
1971.
2
In addition to assigning a current loan value to margin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise of subscription rights.
3
Nonmargin stocks are those not listed on a national securities exchange
and not included on the Federal Reserve System's list of Over the Counter
margin stocks. At banks, loans to purchase or carry nonmargin stocks are
unregulated; at brokers, such stocks have no loan value.
4
Includes loans to purchase or carry margin stock if these are unsecured
or secured entirely by unrestricted collateral (see Dec. 1970 BULLETIN).
5
Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.
E Q U I T Y S T A T U S OF MARGIN A C C O U N T DEBT
A T BROKERS
SPECIAL MISCELLANEOUS A C C O U N T BALANCES
A T BROKERS, BY E Q U I T Y S T A T U S OF A C C O U N T S
(Per cent of total debt, except as noted)
(Per cent of total, except as noted)
End of
period
Total
debt
(millions
of
dollars)!
1972—Oct...
Nov..
Dec..
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Equity class (per cent)
End of period
80 or
more
70-79
60-69
50-59
40-49
Under
40
7,800
7,890
7,900
5.5
6.0
6.5
8.1
9.4
8.6
13.6
16.6
17.6
30.8
35.1
31.9
25.0
20.5
20.3
17.0
12.4
15.0
7,700
7,500
7,200
7,040
6,540
6,180
6,010
5,830
5,730
5.8
5.3
5.7
4.8
4.9
4.9
5.8
5.0
8.2
7.8
7.5
7.3
7.2
7.1
8.8
8.4
18.9
16.8
14.7
15.9
13.4
12.7
13.2
17.7
16.4
23.9
27.8
23.9
23.1
19.8
18.7
17.5
22.7
19.6
23.5
21.2
22.5
22.7
22.4
21.9
22.1
25.3
24.2
16.8
20.0
25.6
25.1
32.4
34.9
35.3
19.7
26.4
1 See note 1 to table above.
NOTE.—Each customer's equity in his collateral (market value of collateral less net debit balance) is expressed as a percentage of current collateral values.
1973—Jan
Feb
July
Net
credit
status
Equity class of accounts
in debi t status
Total
balance
(millions
60 per cent Less than
or more 60 per cent of dollars)
33.7
33.3
33.6
34.4
53.8
53.4
54.5
52.9
12.5
13.3
11.8
12.7
6,000
5,950
6,140
6,100
35.1
35.8
36.3
35.3
35.8
35.8
35.9
35.9
37.4
51.7
49.8
47.9
46.9
45.0
43.5
46.7
45.6
53.1
13.1
14.4
15.7
18.0
19.1
20.7
17.4
18.5
9.4
5,850
5,770
5,790
5,660
5,670
5,750
5,740
5,650
5,740
NOTE.—Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer's margin account or deposits of cash (usually
sales proceeds) occur.
D E C E M B E R 1973 • SAVINGS INSTITUTIONS
A 37
M U T U A L SAVINGS BANKS
(In millions of dollars)
Securities
Loans
End of period
Mortgage
Other
U.S.
Govt.
Corporate
and
other i
State
and
local
govt.
Cash
Other
assets
Total
assets—
Total
liabilities
and
general
reserve
accts.
Deposits 2
Mortgage loan
commitments 3
classified by maturity
(in months)
Other General
liabili- reserve
acties
counts
3 or
less
3-6
6-9
Over
9
1
Total
1965
1966
44,433
47,193
862
1,078
5,485
4,764
320
251
5,170
5,719
1,017
953
944
1,024
58,232
60,982
52,443
55,006
1,124
1,114
4,665
4,863
196 7
196 8
1969
197 0
197 1
19724
50,311
53,286
55,781
57,775
62,069
67,563
1,203
1,407
1,824
2,255
2,808
2,979
4,319
3,834
3,296
3,151
3,334
3,510
219
194
200
197
385
873
8,183
10,180
10,824
12,876
17,674
21,906
993
996
912
1,270
1,389
1,644
1,138
1,256
1,307
1,471
1,711
2,117
66,365
71,152
74,144
78,995
89,369
100,593
60,121
64,507
67,026
71,580
81,440
91,613
1,260
1,372
1.588
1,690
1,810
2,024
4,984
5,273
5,530
5,726
6,118
6,956
742
811
584
619
1,047
1,593
£)82
M )34
485
322
627
713
799 2,523
1,166 3,011
452
946 2,467
302
688 1,931
463 1,310 3,447
609 1,624 4,539
1972—Sept.. .
Oct
Nov.. .
Dec
65,901
66,373
66,891
67,563
3,604
3,482
3,507
2,979
3,408
3,462
3,434
3,510
822
844
871
873
!21,569
21,513
21,664
21,906
1,362
1,304
1,323
1,644
1,834
2,011
2,014
2,117
98,500
98,990
99 -704
100/593
89,289
89,677
90,228
91,613
2,428
2,510
2,607
2,024
6,784
6,803
6,870
6,956
1,740
1,667
1,624
1,593
716
718
753
713
583
617
631
609
1973—Jan....
Feb....
Mar...
Apr....
May...
June...
July...
Aug....
Sept.. .
68,021
68,352
68,920
69,426
69,988
70,637
71,219
71,713
72,034
3,624
4,030
3,970
3,831
4,099
3,959
3,819
3,986
4,200
3,489
3,419
3,458
3,388
3,376
3,346
3,190
3,037
2,945
935
986
1,028
1,080
1,076
1,125
1,093
999
957
22,190
22,389
22,509
22,598
22,615
22,562
22,683
22,277
21,799
1,319
1,331
1,576
1,582
1,629
1,775
1,555
1,551
1,491
2,055
2,070
2,058
2,089
2,116
2,273
2,202
2,227
2,345
101,632
102,577
103,518
103,994
104,899
105,677
105,761
105,789
105,771
92,398
2,221
92,949 ' 2,540
2,285
94,095
94,217
2.589
94,744 2 , 9 0 4
95,706
2,650
95,355
3,044
94,882 3,496
95,183
3,134
7,014
7,088
7,139
7,189
7,251
7,321
7,362
7,411
7,453
1,569
1,729
1,816
1,904
1,792
1,711
1,626
1,302
1,411
915
862
886
888
913
1,020
906
840
762
1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2
Beginning with data for June 30, 1966, about $1.1 billion in "Deposits
accumulated for payment of personal loans" were excluded from "Time
deposits" and deducted from "Loans" at all commercial banks. These
changes resulted from a change in Federal Reserve regulations. See table
(and notes), Deposits Accumulated for Payment of Personal Loans, p. A-30.
3
Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans beginning with Aug. 1967.
2,697
2,010
1,637
1,660
1,658
1,624
4,675
4,662
4,666
4,539
688 1,541
732 1,480
826 1,355
725 1,395
712 1,406
573 1,378
636 1,367
718 1,315
589 1,197
4,712
4,803
4,882
4,912
4,824
4,683
4,535
4,174
3,959
4 Balance sheet data beginning Jan. 1972 are reported on a gross-ofvaluation-reserves basis. The data differ somewhat from balance sheet
data previously reported by National Assn. of Mutual Savings Banks
which were n&t of valuation reserves. For most items, however, the differences are relatively small.
NOTE.—NAMSB data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the BULLETIN; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.
LIFE INSURAIN E COMPANIES
(In millio
of dollars)
Government securities
End of period
Total
assets
Total
United
States
Business securities
State and Foreign 1
local
Total
Bonds
Stocks
Mortgages
Real
estate
Policy
loans
Statement value
196 5
196 6
196 7
196 8
158,884
167,022
177,832
188,636
11,679
10,837
10,573
10,509
5,119
4,823
4,683
4,456
3,530
3,114
3,145
3,194
3,030
2,900
2,754
2,859
67,599
69,816
76,070
82,127
58,473
61,061
65,193
68,897
9,126
8,755
10,877
13,230
60,013
64,609
67,516
69,973
4,681
4,883
5,187
5,571
7,678
9,117
10,059
11,306
Book value:
196 6
1967
196 8
196 9
197 0
197 1
1972*
167,022
177,361
188,636
197,208
207,254
222,102
239,407
10,864
10,530
10,760
10,914
11,068
11,000
11,080
4,824
4,587
4,456
4,514
4,574
4,455
4,333
3,131
2,993
3,206
3,221
3,306
3,363
3,522
2,909
2,950
3,098
3,179
3,188
3,182
3,406
68,677
73,997
79,653
84,566
88,518
99,805
112,980
61,141
65,015
68,731
70,859
73,098
79,198
86,605
7,536
8,982
10,922
13,707
15,420
20,607
26,375
64,661
67,575
70,044
72,027
74,375
75,496
77,319
4,888
5,188
5,575
5,912
6,320
6,904
7,310
9,911
10,060
11,305
13,825
16.064
17.065
17,998
1972—Aug. r .
Sept...
Oct...
Nov...
Dec...
233,540
234,455
235,972
237,971
239,407
11,318
11,125
11,132
11,193
11,080
4,596
4,385
4,396
4,459
4,333
3,361
3,350
3,347
3,356
3,522
3,361 109,879
3,390 '10,300
3,389 111,616
3,378 113,066
3,406 112,980
84,990
85,912
86,874
87,425
86,605
24,889
24,388
24,742
25,641
26,375
75,525
75,813
75,952
76,207
77,319
7,246
7,245
7,229
7,272
7,310
17,691
17,773
17,854
17,922
17,998
1973—Jan.. .
Feb...
Mar...
Apr...
May..
June..
July...
Aug...
241,022
242,069
243,078
242,562
243,589
244,531
247,082
247,655
11,191
11,138
11,154
11,455
11,434
11,359
11,427
11,416
4,389
4,371
4,417
4,566
4,538
4,468
4,480
4,462
3,358
3,319
3,300
3,388
3,384
3,373
3,427
3,433
3,444 114,526
3,448 115,386
3,437
15,972
3,501 115,181
3,512 115,897
3,518
16,153
3.520 118,061
3.521 117,842
88,371
89,247
89,881
89,710
90,314
90,484
91,144
91,342
26,155
26,139
26,091
25,471
25,583
25,669
26,917
26,500
77,481
77,510
77,587
77,258
77,400
77,914
78,243
78,657
7,366
7,434
7,449
7,522
7,545
7,548
7,577
7,632
18,080
18,166
18,288
18,420
18,533
18,673
18,841
19,181
i Issues o f foreign governments and their subdivisions and bonds of
the International Bank for Reconstruction and Development.
NOTE.—Institute of Life Insurance estimates for all life insurance
companies in the United States.
Figures are annual statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total in
"Other assets."
A 38
SAVINGS INSTITUTIONS • DECEMBER 1973
SAVINGS A N D LOAN ASSOCIATIONS
(In millions of dollars)
Liabilities
End of period
Mortgages
Investment
securities 1
Other 2
Cash
Net
worth 3
Borrowed
money 4
Loans
Other
143,534
152,890
162,149
176,183
206,303
124,493
131,618
135,538
146,404
174,472
9,916
10,691
11,620
12,401
13,657
4,775
5,705
9,728
10,911
9,048
2,257
2,449
2,455
3,078
5,072
2,093
2,427
2,808
3,389
4,054
3,042
3,631
2,824
4,452
7,378
24,648
24,750
24,491
12,457
12,689
12,693
237,659
240,705
243,571
202,012
203,889
207,305
15,485
15,992
15,326
8,327
8,503
9,847
6,086
6,067
6,225
5,749
6,254
4,868
12,226
12,274
11,578
6 23,460
24,220
24,019
23,943
24,072
23,362
22,769
21,139
20,161
20,809
615,660
16,214
17,104
17,605
17,990
18,038
18,416
18,826
19,131
19,411
247,252
250,694
254,382
257,798
261,562
264,201
266,675
267,971
268,705
270,671
210,589
212,493
216,195
217,026
218,906
222,183
221,958
220,800
222,645
223,600
15,557
15,925
15,825
16,133
16,505
16,315
16,640
16,986
16,872
17,157
9,171
9,415
9,958
11,336
11,756
12,766
14,295
15,703
16,324
16,509
6,076
6,095
6,326
6,548
6,727
6,770
6,702
6,464
6,078
5,540
5,859
6,766
6,078
6,755
7,668
6,167
7,080
8,018
6,786
7,865
12,469
13,538
14,508
15,009
15,139
14,776
13,778
12,314
10,861
9,949
121,805
130,802
140,232
150,331
174,385
9,180
11,116
10,873
13,020
21,076
1972—Oct..
Nov..
Dec..
200,554
203,266
206,387
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
Aug..
Sept.,
Oct.*
208,132
210,260
213,259
216,250
219,500
222,801
225,490
228,006
229,413
230,451
7,788
Savings
capital
Mortgage
loan commitments
outstanding
at end of
period 5
8,606
9,326
10,842
196 7
196 8
196 9
197 0
197 1
3,442
2,962
2,438
3,506
Total
assets—
Total
liabilities
8,010
1
Investment securities included U.S. Govt, securities only through 1967.
Beginning 1968 the total reflects liquid assets and other investment securities. Included are U.S. Govt, obligations, Federal agency securities,
State and local govt, securities, time deposits at banks, and miscellaneous
securities, except stock of the Federal Home Loan Bank Board. Compensating changes have been made in "Other assets."
2 Includes other loans, stock in the Federal home loan banks, other
investments, real estate owned and sold on contract, and office buildings
and fixtures. See also notes 1, 5, and 6.
3 Includes net undistributed income, which is accrued by most, but not
all, associations.
4
Consists of advances from FHLBB and other borrowing.
5 Data comparable with those shown for mutual savings banks (on
preceding page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
6 Beginning Jan. 1973, participation certificates guaranteed by the
Federal Home Loan Mortgage Corporation, loans and notes insured by
the Farmers Home Administration and certain other Governmentinsured mortgage-type investments, previously included in mortgage
loans, are included in other assets. The effect of this change was to reduce
the mortgage total by about $0.6 billion.
Also, GNMA-guaranteed, mortgage-backed securities of the passthrough type, previously included in cash and investment securities are
included in other assets. These amounted to about $2.4 billion at the end
of 1972.
NOTE.—FHLBB data; figures are estimates for all savings and loan
assns. in the United States. Data are based on monthly reports of insured
assns. and annual reports of noninsured assns. Data for current and
preceding year are preliminary even when revised.
MAJOR BALANCE S H E E T ITEMS OF S E L E C T E D F E D E R A L L Y S P O N S O R E D C R E D I T AGENCIES
(In millions of dollars)
Federal home loan banks
Liabilities and capital
Assets
Federal National
Mortgage Assn.
(secondary market
operations)
Banks
for
cooperatives
Federal
intermediate
credit banks
Federal
land
banks
End of
period
Advances
to
members
Investments
4,386
5,259
9,289
10,614
7,936
2,598
2,375
1,862
3,864
2,520
127
126
124
105
142
4,060
4,701
8,422
10,183
7,139
1,432
1,383
1,041
2,332
1,789
1972—Sept...
Oct...
Nov..
Dec...
6,736
7,045
7,245
7,979
2,184
2,591
2,850
2,225
106
83
107
129
6,531
6,531
6,971
6,971
1973—Jan...
Feb...
Mar..
Apr...
May..
June..
July..
Aug...
Sept..
7,831
7,944
8,420
9,429
10,155
11,145
12,365
13,511
14,298
2,264
2,421
1,938
2,087
2,702
2,516
2,126
2,016
2,908
91
106
108
111
95
108
103
111
102
6,971
7,220
7,220
8,415
9,615
10,215
11,213
12,562
14,062
196 7
196 8
196 9
197 0
197 1
Cash
and
deposits
Bonds
and
notes
Member
deposits
Mortgage
loans
(A)
Debentures
and
notes
(L)
Loans
to
cooperatives
(A)
1,395
1,402
1,478
1,607
1,618
5,348
6,872
10,541
15,502
17,791
4,919
6,376
10,511
15,206
17,701
1,506
1,577
1,732
2,030
2,076
1,444
1,334
1,380
1,548
1,729
1,735
1,741
1,756
19,295
19,438
19,619
19,791
18,939
18,724
19,041
19,238
1,306
1,323
1,291
1,143
1,261
1,453
1,183
1,091
1,178
1,821
19,980
20,181
20,571
20,791
21,087
21,413
21,772
22,319
22,826
19,252
19,402
19,985
20,056
20,225
20,364
20,843
21,186
21,537
Capital
stock
1,891
1,943
1,981
1,991
2,008
2,035
2,064
2,089
NOTE.—Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB's.
Bonds, debentures, and notes are valued at par. They include only publicly
Loans
and
discounts
(A)
Debentures
1,253
1,334
1,473
1,755
2,233
2,355
2,313
2,298
2,876
2,936
2,896
2,859
2,765
2,725
2,811
2,865
2,738
Debentures
Bonds
(L)
Mortgage
loans
(A)
1,801
3,411
3,654
4,275
4,974
5,669
3,214
3,570
4,116
4,799
5,503
5,609
6,126
6,714
7,186
7,917
4,904
5,399
5,949
6,395
7,063
1,710
1.837
i;905
1,944
6,201
6,110
6,048
6,094
6,063
5,952
5,872
5,804
8,749
8,857
8,972
9,107
8,012
8,012
1,950
2,188
2,188
2,465
2,370
2,316
2,365
2,310
2,560
6,087
6,179
6,414
6,555
6,777
6,958
6,981
7,899
8,016
5,891
5,969
6,076
6,314
6,460
6,645
6,745
6,727
6,833
9,251
9,387
9,591
9,767
9,953
10,117
10,256
10,441
10,592
8,280
8,280
8,280
8,836
8,836
8,836
9,377
9,390
9,388
(L)
(L)
7,798
8,012
offered securities (excluding, for FHLB's, bonds held within the FHLB
System) and are not guaranteed by the U.S. Govt.; for a listing of these
securities, see table on opposite page. Loans are gross of valuation reserves
and represent cost for F N M A and unpaid principal for other agencies.
D E C E M B E R 1973 • F E D E R A L L Y S P O N S O R E D C R E D I T A G E N C I E S
O U T S T A N D I N G ISSUES O F F E D E R A L L Y S P O N S O R E D AGENCIES, S E P T E M B E R 30, 1973
Agency, and date of issue
and maturity
Federal home loan banks
Bonds:
11/27/72 - 11/27/73..
1/26/70 - 1 / 2 5 / 7 4 . . .
9/21/73 - 1/25/74.
2/25/74
6/26/70 -- 2/25/74
8/27/71 - 2/25/74
6/25/71 - 5 / 2 5 / 7 4
2/26/73 - 5/28/74
8/25/69 - 8/25/74
8/25/72 - 8/26/74
8/27/73 - 8/26/74
11/25/69 - 1 1 / 2 5 / 7 4 . . .
5/25/73 - 11/25/74
1/26/71 - 2/25/75
11/27/72-2/25/75
9/21/73 - 2/25/75
8/25/70 - 5/26/75
7/27/70 - 8/25/75
4/12/73 - 5/25/75
7/25/73 - 8 / 2 5 / 7 5
12/18/70- 11/25/75....
5/25/73 - 11/25/75
8/27/71 - 2 / 2 5 / 7 6
8/27/73 - 2/25/76
7/25/73 - 8/25/76
6/25/71 - 5/25/77
6/22/73 - 5/22/77
4/12/73 - 8/25/77
2/26/73 - 11/25/77
9/21/73 - 5/25/78
3/25/70 - 2/25/80
10/15/70- 10/15/80....
10/27/71 - 1 1 / 2 7 / 8 1 . . .
4/12/73 - 5/25/83
8/27/73 - 5/25/83
Federal Home Loan
Mortgage Corporation
Bonds:
8/2/71 - 11/26/73
2/10/72 - 8/26/74
5/11/72 - 2 / 2 5 / 7 7
11/19/70- 11/27/95....
7/15/71 - 8 / 2 6 / 9 6
5 / 1 1 / 7 2 - 5/26/97
federal National Mortgage
Association—
Secondary market
operations
Discount notes
Capital debentures:
9/30/68 - 10/1/73
4/1/70 - 4/1/75
9/30/71 - 10/1/96
1 0 / 2 / 7 2 - 10/1/97
Mortgage-backed bonds:
6/1/70 - 6/2/75
3/14/73 - 1/15/81
3/14/73 - 1/15/81
6/21/73 - 7/1/82
6/21/73 - 7/1/82
3/1/73-8/31/84
3/1/73-10/31/84
3/1/73 - 3/1/86
9 / 2 9 / 7 0 - 10/1/90
Coupon
rate
Amount
(millions
of dollars)
5.55
8.40
9H
8.40
7.10
6.35
6.45
7.65
5 n
9 Ys
8.00
7.05
6.10
5%
8.20
8.05
7.95
7.15
7%
6.50
7.05
7H
8%
7.80
6.95
7.20
7.15
6%
7.60
7.75
7.80
6.60
7.30
9 y4
600
300
500
250
300
300
700
176
400
800
221
6.70
5.30
6.15
8.60
7.75
7.15
1,000
250
400
500
265
300
700
500
350
600
300
300
500
200
600
300
300
500
350
200
200
200
700
150
200
350
140
150
150
1,638
6.00
8.00
4.38
7.40
250
200
248
250
8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63
250
53
6
72
35
10
21
81
200
Agency, and date of issue
and maturity
Federal National Mortgage
Association—Cont.
Debentures:
12/10/70 - 12/10/73..
8/10/71 - 1 2 / 1 0 / 7 3 . . . .
12/1/71 - 3/11/74.
4/10/70 - 3 / 1 1 / 7 4 . . . .
8/5/70 - 6/10/74
11/10/71 - 6 / 1 0 / 7 4 . . . .
9/10/69 - 9 / 1 0 / 7 4 . . . .
2/10/71 - 9/10/74
5/10/71 - 1 2 / 1 0 / 7 4 . . . .
9/10/71 - 1 2 / 1 0 / 7 4 . . . .
11/10/70 - 3 / 1 0 / 7 5 . . .
10/12/71 - 3 / 1 0 / 7 5 . . .
4/12/71 - 6 / 1 0 / 7 5
10/13/70 - 9 / 1 0 / 7 5 . . .
3/12/73 - 9 / 1 0 / 7 5
3/10/72 - 1 2 / 1 0 / 7 5 . . .
9/10/73 - 1 2 / 1 0 / 7 5 . . . .
3/11/71 - 3/10/76
6/12/73 - 3 / 1 0 / 7 6
6/10/71 - 6 / 1 0 / 7 6
2/10/72-6/10/76
11/10/71 - 9 / 1 0 / 7 6 . . . .
6/12/72 - 9/10/76
7/12/71 - 1 2 / 1 0 / 7 6 . . . .
1 2 / 1 1 / 7 2 - 12/10/76...
2/13/62 - 2 / 1 0 / 7 7 . . . .
9/11/72-3/10/77
12/10/70 - 6/10/77. . .
5/10/71 - 6 / 1 0 / 7 7
9/10/71 - 9 / 1 2 / 7 7
9/10/73 - 9/12/77
7/10/73 - 1 2 / 1 2 / 7 7 . . . .
6/12/73 - 6 / 1 2 / 7 8
10/12/71 - 12/11/78..
6/12/72-9/10/79
9/10/73 - 9/12/79
12/10/71 - 12/10/79..
2/10/72 - 3/10/80
2/16/73 - 7 / 3 1 / 8 0
2/16/73 - 7/31/80
1/16/73 - 1 0 / 3 0 / 8 0 . . . .
12/11/72- 12/10/80...
6/29/72 - 1/29/81
3/12/73 - 3/10/81
4/18/73-4/10/81
3/21/73-5/1/81
3/12/73 - 5/1/81
1/21/71 - 6 / 1 0 / 8 1 . . . .
9/10/71 - 9 / 1 0 / 8 1
6/28/72-5/1/82
2/10/71 - 6/10/82
9/11/72 - 9/10/82
3/11/71 - 6 / 1 0 / 8 3
6/12/73 - 6 / 1 0 / 8 3
11/10/71 - 9 / 1 2 / 8 3 . . . .
4/12/71-6/11/84
12/10/71 - 12/10/84..
3/10/72 - 3 / 1 0 / 9 2 . . . .
6/12/72-6/10/92
1 2 / 1 1 / 9 7 - 12/10/97. . .
Coupon
rate
5.75
7.15
5.45
7.75
7.90
5.7P
7.85
5.65
6.10
6.45
7.55
6.35
5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
6.13
5.85
7.45
6.25
4 Vi
6.30
6.38
6.50
6.88
7.85
7.25
7.15
6.75
6.40
7.85
6.55
6.88
5.19
3.18
4.96
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
5.84
6.65
6.80
6.75
7.30
6.75
6.25
6.90
7.00
7.05
7.10
Amount
(millions
of dollars)
500
500
400
350
400
350
250
300
250
450
300
600
500
350
650
500
300
500
400
250
450
300
500
300
500
198
500
250
150
300
400
500
600
300
300
300
350
250
1
9
5
300
156
350
26
18
2
250
250
58
250
200
200
300
250
200
250
200
200
200
Agency, and date of issue
and maturity
Banks for cooperatives
Debentures:
10/1/70 - 10/1/73
4/2/73 - 10/1/73
5/1/73 - 11/1/73
6/4/73 - 12/3/73
7/2/73 - 1/2/74
8/1/73 - 2/4/74
Federal intermediate
credit banks
Debentures:
1/2/73 - 10/1/73
2/1/73 - 11/1/73
3/1/73 - 12/3/73
4/2/73 - 1/2/74
7/1/71 - 1/2/74
5/1/73 - 2 / 4 / 7 4
6/4/73 - 3/4/74
7/2/73 - 4 / 1 / 7 4
8/1/73 - 5/1/74
9/4/73 - 6/3/74
1/4/71 - 7/1/74
5/1/72 - 1/2/75
1/3/72-7/1/75
3/1/73 - 1/5/76
7/2/73 - 1/3/77
7.30
6.95
6.75
6.85
7.55
8.70
5.70
6.00
6.15
7.00
6.85
6.90
7.00
8.65
5.95
6.05
5.70
6.65
7.10
Federal land banks
Bonds:
2/20/63 - 2 / 2 0 / 7 3 - 7 8 . . . 4 ^
4/20/70 - 10/22/73
7.80
10/23/72 - 10/23/73
5.80
7/20/72 - 1/21/74
5.55
2/20/72 - 2/20/74
4%
10/20/70 - 4/22/74
7.30
9/15/72-4/22/74
5.85
10/21/71 - 7/27/74
S85
4/20/71 - 10/21/74
5.30
2/20/70 - 1/20/75
8^
4/23/73 - 1/20/75
7.15
4/20/65
4/21/75
4^
7/20/73 - 4 / 2 1 / 7 5
7.65
2/15/72-7/21/75
5.70
7/20/71 - 10/20/75
7.20
4/20/72 - 1/20/76
614
2/21/66 - 2/24/76
5.00
1/22/73 - 4/20/76
6^
7/20/66 - 7/20/76
5H
4/23/73 - 10/20/76
7.15
7/20/73 - 7/20/77
10/27/71 - 10/20/77
« 5
5/2/66 - 4/20/78
7/20/72 - 7/20/78
6.40
2 / 2 0 / 6 7 - 1/22/79
5.00
9/15/72-4/23/79
6.85
6.80
10/23/72 - 10/23/79
6.70
1/22/73 - 1/21/80
7/20/73 - 7/21/80
m
6.70
2/23/71 - 4 / 2 0 / 8 1
6.90
4/20/72 - 4/20/82
7.30
4/23/73 - 4 / 2 0 / 8 2
NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table at bottom of opposite page.
Coupon
rate
A 39
A 40
FEDERAL FINANCE • D E C E M B E R 1973
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions of dollars)
U.S. budget
Means of financing
Receipt-expenditure account
Borrowings from the public
Period
Net
expenditures
Budget
receipts
Fiscal year:
197 0
197 1
197 2
197 3
193,743 194,456
188,392 210,318
208,649
r
232,225
Half year:
1971—July-Dec.
1972—Jan.-June
July-Dec.
1973—Jan.-June
93,180 110,608
115,549
106,061
r
126,164
Month:
1972—Oc t
Nov
Dec
1973—Ja n
Feb
Mar
Apr......
May
June
July
Aug
Sept
Oct.
r
Budget
outlays i
Net
lending
Budget
surplus
or
deficit
(-)
2,131 196,588 - 2 , 8 4 5
1,107 211,425 - 2 3 , 0 3 3
231,876 - 2 3 , 2 2 7
r
246,526 — 14,301
948
-1,739
-347
-1,269
216
111,554 - 1 8 , 3 7 4 26,001
120,319 - 4 , 8 5 0
3,130
118,586 - 1 2 , 5 2 5 22,037
r
127,940 ' - 1 , 7 7 6
8,844
,117
-150
876
'20,057
21,165
19,721
21,130
18,067
15,987
25,860
16,584
28,504
18,121
21,291
25,007
17,637
23,631
20,227
20,806
22,306
20,157
20,892
22,627
22,139
20,736
23,092
Less: Cash and
monetary assets
Less: InvestPlus: ments by Govt,
Equals:
accounts
Agency
Less:
Total
securiSpecial borrowties
notes 3
ing
Special Other
issues
Public
debt
securities
17,198
27,211
29,131
30,881
14,633
16,748
18,972
2
Treasury
operating
balance
Other
9,386
6,616
6,813
12,029
676
800
1,607
-207
5,397
19,448
19,442
19,275
2,151
710
1,362
2,459
-581
-979
1,108
-1,613
523
1,089
21,561
-2,114
17,386
1,889
973
389
956
1,503
80
1,028
1,525
-660
2,803
4,010
6,239
5,790
6,000
4,301
5,051
24
380
-93
3,085
-659
1,104
r
87
42
-343
2,851
5,298
4,197
-1,786
305
2,795
770
-2,501
-2,160 4,770
3,768
-4,820
3,554 - 1 , 5 4 3
275
-3,573
803
7,612
862
-4,486
2,842
-847
-406
4,271
1,037
-5,455
18
-9
27
-721
-43
68
9
301
40
29
-900
780
584
-56
1,968
3,414
1,258
3,137
-756
-306
168
119
206
-49
234
-174
325
568
-173
1,519
3,863
3,005
-2,159
-1,970
-2,369
-713
-563
564
1,395
302
408
1,152
1,220
-5,924
4,344
-5,398
-4,105
5,207
-2,588
-5,425
-4,418
-750
r
-861
654
-22
r
r
—30
7
57
99
- 2 1 2
•
-83
1,164
-1,141
414
-544
151
346
-43
Selected balances
Federal securities
Treasury operating balance
F.R.
Banks
1
2
Tax
and
loan
accounts
Other
depositaries 5
Total
Public
debt
securities
Special
issues
Other
Less:
Special
notes 3
Equals:
Total
held
by
public
111
109
139
106
8,045
8,755
10,117
12,576
370,919
398,130
427,260
458,142
12,510
12,163
10,894
11,109
76,124
82,740
89,539
101,738
21,599
22,400
24,023
24,093
825
825
825
825
284,880
304,328
323,770
343,045
9,173
8,907
113
310
11,306
11,073
424,131
449,298
11,044
11,770
85,544
95,924
22,922
23,164
825
825
325,884
341,155
1,613
1,182
1,856
6,051
6,786
8,907
309
310
310
7,973
8.278
11,073
439,947
444,247
449,298
11,483
11,863
11,770
95,365
94,821
95,924
23,579
23,506
23,164
825
825
825
331,660
336,958
341,155
2,749
2,073
2,882
4,162
3,242
4,038
2,867
847
1,626
1,839
8,317
9,401
9,744
9,683
4,679
8,433
4,203
2,217
6,582
3,781
310
310
309
311
311
106
108
8
71
71
11,376
11,784
12,935
14,156
8,232
12,576
7,178
3,072
8.279
5,691
450,068
454,838
458,606
457,063
457,338
458,142
459,003
461,845
461,439
462,476
11,787
11,779
11,806
11,084
11,041
11,109
95.024
95,804
96,413
96,356
98,324
101,738
102,996
106,133
105,378
105,071
23,332
23,451
23,632
23,583
23,817
24,093
23,968
24,536
24,362
24,341
825
825
825
825
825
825
825
825
825
823
342,674
346,537
349,542
347,383
345,414
343,045
342.332
341,769
342.333
343,727
1,005
1,274
2,344
4,038
6,929
7,372
7,934
8,433
2,020
1,856
5
Equals net expenditures plus net lending.
The decrease in Federal securities resulting from conversion to private
ownership of Govt.-sponsored corporations (totaling $9,853 million) is
not included here. In the bottom panel, however, these conversions decrease the outstanding amounts of Federal securities held by the public
mainly by reductions in agency securities. The Federal National Mortgage
Association ( F N M A ) was converted to private owership in Sept. 1968 and
the Federal intermediate credit banks (FICB) and banks for cooperatives in Dec. 1968.
3
Represents non-interest-bearing public debt securities issued to the
International Monetary Fund and international lending organizations.
New obligations to these agencies are handled by letters of credit.
Agency
securities
Less:
Investments of
Govt, accounts
11,118
11,419
11,459
11,488
4
Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
5
As of Jan. 3, 1972, the Treasury operating balance was redefined to
exclude the gold balance and to include previously excluded "Other depositaries" (deposits in certain commercial depositaries that have been converted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
6 Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, F N M A (beginning Sept. 1968), and FICB and banks
for cooperatives (both beginning Dec. 1968).
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
D E C E M B E R 1973 • FEDERAL FINANCE
A 41
FEDERAL FISCAL OPERATIONS: D E T A I L
(In millions of dollars)
Budget receipts
Corporation
income taxes
Individual income taxes
Period
Employment
taxes and 1
Gross Re- contributions Un- Other
Net
empl. net
rere- 2 total
insur. ceipts
ceipts funds PaySelfroll
taxes empl.
Total
With- NonReheld with- funds
held
Fiscal year:
197 0
197 1
197 2
197 3
193,743 77,416 26,236
188,392 76,490 24,262
208,649 83,200 25,679
232,225 98,093 27,019
Half year:
1971—July-Dec.
1972—Jan.-June
July-Dec.
1973—Jan.-June
93,180 38,449
115,469 44,751
106,061 46,058
126,165 52,034
Month:
1972—Oc t
Nov
Dec
r
37,190
39,751
44,088
52,505
45,298
48,578
53,914
64,542
15,705
16,614
15,477
16,260
2,430
2,591
3,287
3,188
3,644
3,735
5,436
4,917
3,424
3,858
3,633
3,921
574 43,465 13,262
5,589
20,090 13,569 51,272 21,664
688 51,154 15,315
5,784
21,235 21,179 52,091 23,730
1,448
1,312
1,459
1,434
19,643
155 1,518 1,673 22,989
24,445 1,877 4,736 1,764 30,925
22,493
165 2,437 1,773 26,867
30,013 2,206 3,616 1,841 37,675
8,961
6,516
8,244
8,016
1,838
1,449
1,551
1,637
2,395
3,041
2,333
2,584
1,718
1,915
2,056
1,865
311 '3,758 1,387
287 4,969 1,452
277 2,975 1,286
281
284
234
409
487
364
'244
383
276
289
255
278
262
280
273
276
303
238
291
396
568
489
330
466
335
398
494
373
454
244
289
360
348
264
360
409
308
597
437
8,254
8,404
8,748
8,648
8,813
9,168
8,487
9,085
7,940
8,752
4,671
768
1,494
9,124
1,444
3,735
681
451
3,903
550
18,121
13,240
14,522
14,143
21,866
90,412
86,230
94,737
103,r'~
61 '7,590 1,287
853
69 8,613
61 8,206 5,772
27
1,104
6,833
6,185
6,433
597
354
257
135
71
12,897
8,067
3,409
11,587
3,825
12,306
8,814
9,279
11,707
9,230
1,539
865
5,208
5,915
1,219
8,983
1,552
904
5,477
1,515
1,942
1,948
2,032
2,371
Estate Misc.
and
regift ceipts *
2,208
3,535
2,760
2,893
469
257
353
21,291
25,007
17,637
Net
total
Excise Custaxes toms
35,037
30,320
34,926
39,045
14,633 r 7,181
16,748 8,425
18,972 7,915
21,130
18,067
15,987
25,860
16,584
28,537
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Social insurance taxes
and contributions
323 '3,224
294 4,044
140 2,601
158
193
342
258
296
188
202
209
230
462
15
3,465
3,673
4,357
6,051
'209
637
92
139
174
3,833
167
684
5,900
186
63
4,771
444
4,297 1,316
253 2,156
6,662
145
95
4,548
382
4,608
1,357
7,087
103
4,812
177
217
4,119
24
2,700
3,206
3,437
3,614
340
278
320
302
308
293
346
333
317
351
4,486
7,029
5,340
6,359
9,380
5,081
5,336
8,778
5,409
4,712
1,437
1,186
1,244
1,318
1,446
1,386
1,538
1,434
1,436
1,459
Budget outlays
Natural
Commerce
and
transp.
Com.
mun.
develop,
and
housing
Education Health
and
and
welmanfare
power
General
revenue
sharing
Intragovt.
transactions 4
Total
National
defense
211,425
231,876
246,526
268,665
77,661
78,336
76,027
81,074
3,095
3,786
3,182
3,811
3,381
3,422
3,311
3,135
5,096
7,061
6,051
5,572
2,716
3,759
556
3,663
11,310
11,197
12,520
11,580
3,357 8,226 70,607 9,776
4,216 10,198 81,536 10,747
4,162 10,821 91,230 12,004
4,931 10,110 103,709 11,732
Half year:
1971—July-Dec...
1972—Jan.-June..
July-Dec...
1973—Jan.-June'.
111,557
120,319
118,586
127,940
35,755 1,752
42,583 '2,034
35,350 1,640
40,677 1,542
1,777
1,645
1,676
1,635
5,999
1,062
4,616
1,435
1,952
1,807
329
227
6,030
'5,167
6,200
6,320
2,035
2,637
1,525
4,355
'5,843
5,133
5,<
38,131
'43,405
43,212
48,018
5,003
5,744
5,740
6,264
Month:
1972—Oc t
Nov
Dec
'20,057
21,165
19,721
6,305
6,501
6,135
259
350
221
271
272
284
806
329
-146
'-17
353
-40
1,056
982
829
244
384
414
800
851
960
7,688
7,851
7,710
896
1,279
989
1,559
1,919
1,809
'462
'-277
448
-353
415 6 2,617 - 2 , 4 7 4
23,630
20,227
20,806
22,306
20,157
20,814
22,607
22,139
20,736
23,092
6,633
6,265
6,963
6,417
6,401
8,015
4,878
6,772
6,095
6,607
82
280
323
237
136
486
308
327
205
282
271
241
301
265
255
301
278
262
246
248
994 -1,053
431
230
-77
310
368
324
-155
298
-126
118
2,011
942
440
573
-35
422
503
416
1,546
567
1,072
793
907
1,434
2,104
1,090
957
1,260
483
368
270
243
-148
309
911
779
712
561
808
904
786
788
,066
,336
777
954
661
955
8,130
7,907
7,565
8,058
8,124
8,234
7,792
7,935
8,302
8,040
1,157
1,046
1,064
1,114
1,017
866
1,099
1,054
970
1,058
1,777
2,002
2,097
2,120
2,165
2,004
2,184
2,159
2,392
2,135
586
374
462
409
466
452
563
466
643
479
Period
Fiscal year:
197 1
197 2
1973'
19745
1973—Ja n
Feb
Mar
Apr
May
June'
July
Aug
Sept
Oct
Intl.
affairs
Space
research
Agriculture
1 Old-age, disability, and hospital insurance (including premiums for
uninsured effective July 1, 1973, as provided for in Public Law 92-603),
and2 Railroad Retirement accounts.
Supplementary medical insurance premiums (including premiums
for disabled effective July 1, 1973, as provided for in Public Law 92-603),
and Federal employee retirement contributions.
3 Deposits of earnings by Federal Reserve Banks and other miscellaneous4 receipts.
Consists of Government contributions for employee retirement and
of interest received by trust funds.
2,181
Veterans
Interest
General
govt.
19,608
20,584
22,785
24,672
3,970
4,889
5,619
6,025
-7,376
-7,858
6,636 -8,378
6,035 -9,131
-3,822
10,050 2,392
-4,036
'•10,534 '2,497
10,604 2,870 62,617 -4,039
12,181 2,749 4,019 -4,339
2,514
9
1.493
3
M95
-3
16
1.494
-297
-397
-329
-324
-377
-2,616
-850
-670
-849
-850
5
Estimates presented in the Jan. 1974 Budget Document. Breakdowns do
not add to totals because special allowances for contingencies, and Federal
pay increase (excluding Department of Defense), totaling $1,750 million
for fiscal 1974, are not included.
6 Outlays of $6,786 million in fiscal 1973 contain retroactive payments
of $2,600 million for fiscal 1972.
NOTE.—Half years may not add to fiscal year totals due to revisions in
series that are not yet available on a monthly basis.
A 42
U.S. GOVERNMENT SECURITIES • DECEMBER 1973
GROSS PUBLIC DEBT, BY T Y P E OF SECURITY
(In billions of dollars)
Public issues
End of period
Total
gross
public
debt 1
Marketable
Nonmarketable
Total
Total
Certificates
Bills
Bonds
2
Convertible
bonds
Total 3
Foreign
issues 4
10.1
6.0
33.6
119.5
50.2
48.3
61.4
76.5
85.4
104.2
99.2
95.2
85.3
69.9
2.8
2.7
2.6
2.5
2.4
52.9
52.3
54.9
56.7
56.9
2.4
1.5
3.1
4.3
3.8
87.9
97.5
101.2
114.0
58.6
50.6
2.4
2.3
59.1
72.3
5.7
16.8
265.6
269.5
100.7
103.9
119.4
121.5
45.5
44.1
2.3
2.3
79.6
79.5
21.0
20.6
271.1
269.9
269.8
267.8
265.9
263.0
262.7
262.4
262.4
264.0
270.2
104.9
105.0
105.0
103.2
103.0
121.5
120.2
120.2
120.2
117.8
117.8
117.8
118.7
120.7
120.7
124.6
44.7
44.6
44.6
44.5
45.1
45.1
45.0
42.0
41.9
41.8
37.8
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
79.7
84.9
88.3
88.7
88.9
89.4
89.2
89.1
89.5
89.2
20.5
25.4
28.3
28.5
28.3
28.5
28.2
27.9
28.2
27.8
26.1
1941—Dec.
1946—Dec.
57.9
259.1
50.5
233.1
41.6
176.6
2.0
17.0
1965—Dec.
1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
320.9
329.3
344.7
358.0
368.2
270.3
273.0
284.0
296.0
295.2
214.6
226.5
236.8
235.9
60.2
64.7
69.9
75.0
80.6
1970—Dec.
1971—Dec.
389.2
424.1
309.1
336.7
247.7
262.0
1972—Nov.
Dec.
444.2
449.3
347.6
351.4
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
450.1
454.8
458.6
457.1
457.3
458.1
459.0
461.8
461.4
462.5
464.0
353.2
357.1
360.4
358.9
357.1
354.6
354.2
353.8
354.1
355.5
360.5
218.0
30.0
5.9
100.1
99.9
101.8
99.8
101.6
107.7
1
Includes non-interest-bearing debt (of which $619 million on Nov.
30, 1973, was not subject to statutory debt limitation).
2
Includes Treasury bonds and minor amounts of Panama Canal and
postal savings bonds.
3
Includes (not shown separately): depositary bonds, retirement plan
bonds, and Rural Electrification Administration bonds; before 1954,
Armed Forces leave bonds; before 1956, tax and savings notes; and
before Oct. 1965, Series A investment bonds.
mgs
bonds
& notes
8.9
56.5
88.0
4
Nonmarketable certificates of indebtedness, notes, and bonds in the
Treasury foreign series and foreign currency series issues.
5 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
NOTE.—Based on Daily Statement of U.S. Treasury. See also second
paragraph in NOTE to table below.
OWNERSHIP OF PUBLIC D E B T
(Par value, in billions of dollars)
Held by private investors
Held by—
Total
gross
public
debt
U.S.
Govt,
agencies
and
trust
funds
F.R.
Banks
41.9
259.1
6.1
27.4
2.5
23.4
320.9
329.3
344.7
358.0
59.7
65.9
73.1
76.6
368.2
389.2
424.1
Commercial
banks
Mutual
savings
banks
Insurance
companies
Other
corporations
State
and
local
govts.
33.4
208.3
12.7
74.5
2.7
11.8
5.7
24.9
2.0
15.3
40.8
44.3
49.1
52.9
220.5
219.2
222.4
228.5
60.7
57.4
63.8
66.0
5.3
4.6
4.1
3.6
10.3
9.5
8.6
8.0
89.0
97.1
106.0
57.2
62.1
70.2
222.0
229.9
247.9
56.8
62.7
65.3
2.9
2.8
2.7
444.2
449.3
116.1
116.9
69.5
69.9
258.6
262.5
63.5
67.0
450.1
454.8
458.6
457.1
457.3
458.1
459.0
461.8
461.4
462.5
116.2
117.1
117.9
117.9
120.1
123.4
125.0
128.7
127.8
127.4
72.0
72.6
74.3
75.5
74.1
75.0
77.1
76.1
76.2
78.5
261.8
265.1
266.4
263.7
263.1
259.7
256.9
257.1
257.4
256.5
66.0
62.4
61.6
60.1
57.9
57.9
55.5
54.1
55.0
55.4
Total
1
Consists of investments of foreign and international accounts in
the United States.
2
Consists of savings and loan assns., nonprofit institutions, corporate pension trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and
trust funds; Treasury estimates for other groups.
Individuals
Foreign
and
international 1
Other
misc.
investors 2
Savings
bonds
Other
securities
.4
6.3
1.9
44.2
7.5
20.0
.2
2.1
.3
9.3
15.8
14.9
12.2
14.2
22.9
24.3
24.1
24.4
49.7
50.3
51.2
51.9
22.4
24.3
22.8
23.9
16.7
14.5
15.8
14.3
16.7
19.4
19.9
22.4
7.1
7.0
6.6
11.7
9.4
12.4
25.9
25.2
25.0
51.8
52.1
54.4
29.6
29.8
19.6
11.2
20.6
46.9
25.0
20.4
15.0
2.7
2.6
6.1
6.0
12.0
11.7
27.9
28.3
57.4
57.7
17Tl
17.0
56.0
55.3
16.1
17.0
2.6
2.6
2.5
2.5
2.4
2.4
2.2
2.1
2.0
2.0
6.1
5.8
5.9
5.7
5.7
5.7
5.8
5.7
5.7
5.6
12.3
12.7
13.0
12.5
13.3
12.0
12.8
14.0
12.5
13.5
29.5
29.0
28.9
28.7
28.1
28.3
27.9
27.2
28.5
28.0
58.0
58.3
58.6
58.9
59.2
59.5
59.7
59.8
59.8
60.0
16.8
16.6
16.6
16.5
16.4
16.4
16.5
16.8
16.9
16.9
54.2
61.1
63.1
61.7
61.1
60.2
59.7
59.2
58.5
57.5
16.5
16.7
16.3
17.2
18.9
17.4
16.7
18.2
18.5
17.5
The debt and ownership concepts were altered beginning with the
Mar. 1969 BULLETIN. The new concepts ( 1 ) exclude guaranteed securities and ( 2 ) remove from U . S . Govt, agencies and trust funds
and add to other miscellaneous investors the holdings of certain
Govt.-sponsored but privately owned agencies and certain Govt, deposit
accounts.
D E C E M B E R 1973 • U.S. GOVERNMENT S E C U R I T I E S
A 43
OWNERSHIP OF M A R K E T A B L E SECURITIES, BY M A T U R I T Y
(Par value, in millions of dollars)
>JVithin 1 yea r
1-5
years
5-10
years
10-20
years
Over
20 years
35,500
21,636
26,552
29,352
29,363
82,318
93,648
88,564
80,576
80,535
22,554
29,321
29,143
31,103
31,102
8,556
9,530
15,301
15,317
15,269
10,863
10,397
6,079
6,245
6,201
708
605
674
456
466
2,297
775
935
1,428
1,412
6,075
7,614
6,418
7,016
7,005
3,877
4,676
5,487
5,452
5,448
1,748
2,319
4,317
4,879
4,888
2,387
2,456
1,530
1,640
1,620
36,338
36,032
37,750
42,494
44,571
25,965
31,033
29,745
34,652
36,647
10,373
4,999
8,005
7,842
7,924
19,089
25,299
24,497
22,619
22,821
6,046
7,702
6,109
9,391
9,376
229
584
1,414
1,522
1,530
440
601
136
190
192
168,479
173,376
180,243
165,267
164,716
84,080
81,729
91,063
84,736
84,491
61,250
65,867
73,451
64,654
64,464
22,830
15,862
17,612
20,082
20,027
57,154
60,735
57,649
50,941
50,709
12,631
16,943
17,547
16,260
16,278
6,579
6,627
9,570
8,916
8,851
8,036
7,340
4,413
4,415
4,389
50,917
51,363
52,440
42,403
42,782
19,208
14,920
18,077
13,781
14,130
10,314
8,287
10,289
5,080
5,518
8,894
6,633
7,788
8,701
8,612
26,609
28,823
27,765
22,841
22,943
4,474
6,847
5,654
4,716
4,640
367
555
864
808
805
260
217
80
258
265
Mutual savings banks:
1970—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
2,745
2,742
2,609
2,037
2,021
525
416
590
453
493
171
235
309
139
194
354
181
281
314
299
1,168
1,221
1,152
820
805
339
499
469
342
289
329
281
274
279
292
385
326
124
143
142
Insurance companies:
1970—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
6,066
5,679
5,220
4,895
4,878
893
720
799
732
689
456
325
448
262
223
437
395
351
470
466
1,723
1,499
1,190
1,020
1,075
849
993
976
1,278
1,278
1,369
1,366
1,593
1,326
1,309
1,231
1,102
661
539
527
Nonfinancial corporations:
1970—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
3,057
6,021
4,948
3,944
4,911
1,547
4,191
3,604
2,766
3,480
1,194
3,280
1,198
1,270
1,594
353
911
2,406
1,496
1,886
1,260
1,492
1,198
1,009
1,228
242
301
121
90
105
2
16
25
64
68
6
20
1
15
29
Savings and loan
1970—Dec.
1971—Dec.
1972 Dec.
1973—Sept.
Oct.
3,263
3,002
2,873
2,341
2,315
583
629
820
549
552
220
343
498
117
116
363
286
322
432
436
1,899
1,449
1,140
988
963
281
587
605
517
513
243
162
226
207
211
258
175
81
80
77
11,204
9,823
10,904
10,165
9,779
5,184
4,592
6,159
6,016
5,723
3,803
3,832
5,203
4,600
4,563
1,381
760
956
1,416
1,160
2,458
2,268
2.033
1,815
1,774
774
783
816
930
896
1,191
918
1,298
1,054
1,036
1,598
1,263
598
350
350
91,227
94,746
101,249
99,482
98,030
56,140
56,261
61,014
60,439
59,424
45,092
49,565
55,506
53,186
52,256
11,048
6,696
5,508
7,253
7,168
22,037
23,983
23,171
22,448
21,921
5,672
6,933
8,906
8,387
8,557
3,078
3,329
5,290
5,178
5,130
4,298
4,237
2,868
3,030
2,999
Type of holder and date
Total
Total
Bills
247,713
262,038
269,509
262,356
264,047
123,423
119,141
130,422
129,114
130,940
87,923
97,505
103,870
99,762
101,577
U.S. Govt, agencies and trust funds:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Sept. 30
Oct. 31
17,092
18,444
19,360
20,872
20,840
3,005
1,380
1,609
1,884
1,878
Federal Reserve Banks:
197Q—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
62,142
70,218
69,906
76,217
78,491
All holders:
1970—Dec.
1971—Dec.
1972 Dec.
1973—Sept.
Oct.
31
31
31
30
31
Held by private investors:
1970—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
Commercial banks:
1970—Dec. 31
1971—Dec. 31
1972 Dec. 31
1973—Sept. 30
Oct. 31
associations:
31
31
31
30
31
State and local governments:
1970—Dec. 31
1971—Dec. 31
1972—Dec. 31
1973—Sept. 30
Oct. 31
All others:
1970—Dec.
1971—Dec.
1972—Dec.
1973—Sept.
Oct.
31
31
31
30
31
NOTE.—Direct public issues only. Based on Treasury Survey of
Ownership.
Data complete for U.S. Govt, agencies and trust funds and F.R. Banks,
but data for other groups include only holdings of those institutions
that report. The following figures show, for each category, the number
and proportion reporting: (1) 5,611 commercial banks, 479 mutual savings
Other
banks, and 736 insurance companies combined, each about 90 per cent;
(2) 465 nonfinancial corporations and 485 savings and loan assns., each
about 50 per cent; and (3) 505 State and local govts., about 40 per cent.
"All others," a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.
A 44
U.S. GOVERNMENT SECURITIES • DECEMBER 1973
DAILY-AVERAGE DEALER T R A N S A C T I O N S
(Par value, in millions of dollars)
U.S. Government securities
By maturity
By type of customer
U.S. Govt,
agency
securities
Period
Total
Within
1 year
1-5
years
5-10
years
U.S. Govt, U.S. Govt,
securities securities
dealers
brokers
Over
10 years
Commercial
banks
All
other i
1972—Oct
Nov
Dec
3,047
3,397
3,184
2,473
2,397
2,640
350
709
361
126
168
118
99
123
65
837
835
757
420
498
352
988
1,228
1,215
802
837
860
561
731
472
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
3,158
4,155
3,077
3,185
3,187
2,969
2,993
3,366
3,884
3,375
2,445
2,975
2,311
2,535 •
2,390
2,335
2,330
2,403
3,021
2,790
443
721
508
440
322
289
367
706
644
374
148
370
201
165
323
228
226
172
158
163
122
89
57
46
153
118
72
85
61
48
793
888
713
709
661
593
581
566
583
568
470
808
585
636
543
622
632
874
1,182
954
1,113
1,360
987
1,075
1,057
975
982
1,044
1,142
1,072
781
1,099
792
766
927
778
798
881
977
782
463
645
664
714
687
732
700
771
1,048
808
3
10
17
24
31
3,547
4,428
3,069
2,989
3,223
2,746
3,655
2,578
2,641
2,613
577
500
323
224
325
168
214
130
88
227
56
60
38
36
57
530
765
469
496
578
1,007
1,357
981
852
729
1,207
1,378
895
900
1,125
802
928
724
742
791
822
1,024
824
852
700
7
14
21
28*..
4,008
4,078
4,402
3,176
2,716
3,024
3,339
2,425
610
478
510
372
559
513
446
315
123
63
107
64
590
675
729
1,206
1,226
1,315
1,180
1,166
1,295
1,032
1,012
1,063
506
751
1,105
569
Week ending—
1973—Oct.
Nov.
i Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
NOTE.—The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of New York.
They do not include allotments of, and exchanges for, new U .S. Govt
securities, redemptions of called or matured securities, or purchases or
sales of securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the number of
trading days in the period.
DAILY-AVERAGE DEALER POSITIONS
DAILY-AVERAGE DEALER FINANCING
(Par value, in millions of dollars)
(In millions of dollars)
U.S. Government securities, by maturity
Period
Within
All
maturiyear
ties
Commercial banks
1-5
years
5-10
years
Over
10
years
U.S.
Govt,
agency
securities
All
sources
Period
New
York
City
Elsewhere
Corporations 1
All
other
1972—Oct
Nov
Dec
3,333
4,522
4,973
3,452
4,113
4,903
-29
335
73
-132
8
-41
41
66
37
543
834
556
1972—Oct
Nov
Dec
3,055
4,198
4,848
1,227
1,538
1,695
406
617
490
709
944
932
1,334
1,399
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
4,744
3,394
2,702
2,795
2,626
2,976
1,901
1,788
3,201
3,073
4,959
3,365
3,130
3,105
2,596
2,818
1,977
2,958
2,858
-53
-9
-274
-159
-324
-165
-250
-94
316
93
-259
—i
-143
-143
179
91
-43
-107
-111
56
97
39
-11
-9
175
232
131
12
38
67
281
202
180
274
356
744
511
273
799
904
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
4,520
3,415
2,799
3,032
2,667
3,769
2,826
2,318
4,244
3,721
1,346
1,063
903
935
674
1,242
725
829
1,620
1,253
794
455
292
513
452
690
544
327
877
918
932
490
281
311
252
431
510
386
441
328
1,449
1,408
1,323
1,273
1,291
1,406
1,047
777
1,306
1,223
Week ending—
1973—Sept. 5
12
19
26,
2,854
3,566
3,347
2,813
2,597
3,310
3,173
2,502
423
382
280
305
-159
-140
-141
-65
-6
13
35
71
580
645
845
985
Week ending—
1973—Sept. 5 . .
12..
19..
26..
3,108
4,668
4,754
3,999
1,120
2,046
1,844
1,355
616
883
967
874
408
459
581
413
964
1,280
1,363
1,357
2,645
3,247
2,805
3,084
3,469
2,422
3,069
2,629
2,864
3,183
178
114
77
90
49
-23
2
33
59
169
67
62
65
72
69
848
912
912
838
989
3..
10..
17. .
24..
31. .
4,088
3,732
3,696
3,489
3,970
1,313
1,125
1,381
1,258
1,353
969
992
1,006
842
847
258
291
272
283
492
1,549
1,324
1,037
1,106
1,278
Oct.
3
10,
17
24
31
2,062
NOTE.—The figures include all securities sold by dealers under repurchase contracts regardless of the maturity date of the contract, unless the
contract is matched by a reverse repurchase (resale) agreement or delayed
delivery sale with the same maturity and involving the same amount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders of the securities rather than
dealer trading positions.
Average of daily figures based on number of trading days perioin the d.
Oct.
1
All business corporations, except commercial banks and insurance
companies.
NOTE.—Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
NOTE to the table on the left.
D E C E M B E R 1973 • U.S. GOVERNMENT S E C U R I T I E S
A 45
U.S. G O V E R N M E N T M A R K E T A B L E A N D C O N V E R T I B L E SECURITIES, NOVEMBER 30y 1973
(In millions of dollars)
Treasury bills—Cont.
May 2, 1974
4,310
May 7, 1974
4,292
May 9, 1974
1,800
May 16, 1974
4.303
May 23, 1974
4.304
May 30, 1974
4.302
June 4 , 1 9 7 4
4,304
1,804
June 21, 1974f
July
2,1974
4.303
4,301
July 30, 1974
4,312
Aug. 27, 1974
4.303
Sept. 24, 1974
1,801
Oct. 22, 1974
4,310
Nov. 19, 1974
4,253
4.304 Treasury notes
1,809
Feb. 15, 1974
1,790
Apr. 1, 1974
1,802
May 15, 1974
1,803
Aug. 15, 1974
1,803
Sept. 30, 1974
1,801
Oct.
1, 1974
1,802
Nov. 15, 1974
1,803
Dec. 31, 1974
1,802
Feb. 15, 1975
3,008
Feb. 15, 1975
1,802
Apr. 1, 1975
Treasury bills
Dec. 6, 1973
Dec. 13, 1973
Dec. 18, 1973
Dec. 20, 1973
Dec. 27, 1973
Jan.
3, 1974
Jan. 10, 1974
Jan. 15, 1974
Jan. 17, 1974
Jan. 24, 1974
Jan. 31, 1974
Feb. 7, 1974
Feb. 12, 1974
Feb. 14, 1974
Feb. 21, 1974
Feb. 28, 1974
Mar. 7, 1974
Mar. 12, 1974
Mar. 14, 1974
Mar. 21, 1974
Mar. 28, 1974
Apr. 4, 1974
Apr. 9, 1974
Apr. 11, 1974
Apr. 18, 1974
Apr. 19, 1974,
Apr. 25, 1974
Amount
Issue and coupon rate
Amount
Issue and coupon rate
Issue and coupon rate
Treasury notes—Cont.
May 15, 1 9 7 5 . . . . •57/g
May 15, 1 9 7 5 . . . . .6
Aug. 15, 1 9 7 5 . . . . • 57/8
Sept. 30, 1 9 7 5 . . . . •83/g
1, 1 9 7 5 . . . . .1 LA
Oct.
Nov. 15,
Dec. 31, 1975 . . . .7
Feb. 15, 1 9 7 6 . . . . .6 y4
Feb. 15, 1976 . . .
Apr.
.in
May 15^ 1 9 7 6 . . . . . 5 y4
May 15, 1 9 7 6 . . . .
Aug. 15, 1 9 7 6 . . . . . M
Aug. 15, 1976 , , .. .61/2
1, 1 9 7 6 . . . . •m
Oct.
.61/4
Nov. 15,
2,960
8
Feb. 15, 1977
Apr. 1, 1 9 7 7 . . . . .1 %
34
4,334
Aug. 15,
.734
1, 1977 , . . .1 %
10,284
Oct.
2,060
Feb. 15, 1978 . . . . .ey4
42
Apr. 1,
.1 %
5,442
Nov. 15, 1 9 7 8 . , , . .6
2,102
Aug. 15, 1 9 7 9 . . . . . 6 %
4,015
Nov. 15, 1 9 7 9 . . . . •65/g
1,222
Nov. 15, 1979 ,. .7
8
May 15, 1980
•67/8
1,801
1,800
1,801
1,801
1,800
1,797
1,801
1,999
1,802
1,804
1,805
1,802
1,802
1,801
7y 4
1 Vt
iy4
5%
6
m
534
5y 8
Sy 4
5%
UA
Amount
Issue and coupon rate
Amount
Treasury bonds
1,776
Feb. 15,
.41/8
6,760
May 15,
.4 y4
7,679
Nov. 15,
.3%
2,043
May 15, 1975-85. .414
30
June 15, 1978-83.
3,115
Feb. 15, 1 9 8 0 . . . . .4
1,731
Nov. 15, 1 9 8 0 . . . . • 3 V4
3,739
Aug. 15, 1981
.7
4,945
.63/g
Feb. 15, 1982
Aug. 15, 1 9 8 4 . . . . •63/g
27
2,802
May 15, 1 9 8 5 . . . .
2,697
Nov. 15, 1 9 8 6 . . . . .61/8
4,194
Aug. 15, 1987-92. .414
3,883
Feb. 15, 1988-93. . 4
11
May 15, 1989-94. .41/8
4,325
Feb. 15, 1 9 9 0 . . . . • 3i/i
5,163
Feb. 15, 1993
6VA
Aug. 15, 1 9 9 3 . . . . M
5
4,919
Feb. 15, 1 9 9 5 . . . . .3
17
May 15, 1993-98. . 7
8,389
Nov. 15, 1 9 9 8 . . . . • 3i/i
15
8,207
4,559 Convertible bonds
1,604
Investment Series B
2,244
Apr. J 1975-80. .234
7,265
2,466
2,848
1,214
1,202
1,484
2,575
1,897
807
2,702
2,353
960
1,216
3,698
230
1,473
4,029
627
1,363
855
692
3,149
2,275
NOTE.—Direct public issues only. Based on Daily Statement of U.S.
Treasury.
t Tax-anticipation series.
NEW ISSUES OF S T A T E A N D LOCAL G O V E R N M E N T SECURITIES
(In millions of dollars)
Issues for new capital
All issues (new capital and refunding)
Type of issuer
Type of issue
Period
Total
1964
196 5
196 6
196 7
196 8
1969
197 0
197 1
General
obligations
10,847
6,417
11,329
7,177
11,405
6,804
14,766
8,985
16,596
9,269
11,881 7,725
18,164 11,850
24,962 15,220
Revenue
3,585
3,517
3,955
5,013
6,517
3,556
6,082
8,681
1972—Sept..
Oct...
Nov..
Dec...
1,726
2,200
1,862
1,797
663
1,662
1,147
872
803
533
711
653
1973—Jan...
Feb...
Mar..
Apr..
May.
June .
July..
Aug..
Sept..
1,974
1,499
2,451
1,149
768
1,227
866
820
984
1,448
950
698
822
731
916
944
1,093
823
503
537
682
1,818
1,921
2,072
1,958
1,489
1,675
HAA1
U.S.
Govt,
loans
State
Special
district
and
Other 2
stat.
auth.
Hous- Veter- Other
ans'
purings
aid
120 2,838
50 3,311
3,667
5,867
6,523
4,884
7,526
9,293
414
1,025
866
895
1,609
2,147
1,762
1,507
238
444
312
351
107
162
215
21
590
409
365
204
270
52
56
332
404
1,082
814
599
919
891
924
925
703
828
1,121
566
1,845
1,398
2,194
1,752
1,906
2,064
1,937
1,436
1,613
369
365
373
305
299
533
390
262
306
215
63
153
12
232
101
230
28
64
418
406
497
448
428
603
353
303
571
117
10
347
88
222
334
3
290
390
727
553
823
900
723
494
961
552
277
257
4
5
5
4
298
487
425
147
1,016
689
572
754
602
47
613
159
291
189
516
452
236
454
561
914
732
926
1,054
319
471
645
1 Only bonds sold pursuant to 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.
2
Municipalities, counties, townships, school districts.
3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser
and payment to issuer, which occurs after date of sale.
4
Water, sewer, and other utilities.
Utilities 4
727
626
533
645
787
543
466
2,068
5,407
5,144
4,695
7,115
7,884
4,926
8,399
10,246
'293
Roads
and
bridges
2,437
1,965
1,880
2,404
2,833
1,734
3,525
5,214
3,812
3,784
4,110
4,810
5,946
3,596
5,595
8,714
261
Education
688
900
1,476
1,254
1,526
1,432
1,532
2,642
1,628
2,401
2,590
2,842
2,774
3,359
4,174
5,999
303
Total
3,392
3,619
3,738
4,473
4,820
3,252
5,062
5,278
208
170
312
334
282
197
103
62
268
Use of proceeds
10,201
10,471
11,303
14,643
16,489
11,838
18,110
24,495
637
464
325
477
528
402
131
,000
Total
amount
delivered 3
10,069
11,538
5 Includes urban redevelopment loans.
NOTE.—The figures in the first column differ from those shown on the
following page, which are based on Bond Buyer data. The principal
difference is in the treatment of U.S. Govt, loans.
Investment Bankers Assn. data; par amounts of long-term issues
based on date of sale unless otherwise indicated.
Components may not add to totals due to rounding.
A 46
SECURITY I S S U E S • D E C E M B E R 1973
T O T A L NEW ISSUES
(In millions of dollars)
Gross proceeds, all issues 1
Noncorporate
Total
U.S.
Govt. 2
Corporate
U.S.
Govt.
agency 3
State
and local
(U.S.)4
Bonds
Others
Stock
Total
Total
Publicly
offered
Privately
placed
Preferred
37,122
40,108
45,015
10,656
9,348
8,231
1,205
2,731
6,806
10,544
11,148
11,089
760
889
815
13,957
15,992
18,074
10,865
13,720
15,561
3,623
5,570
8,018
7,243
8,150
7,542
412
725
574
68,514
65,562
52,496
88,666
105,233
19,431
18,025
4,765
14,831
17,325
8,180
7,666
8,617
16,181
16,283
14,288
16,374
11,460
17,762
24,370
1,817
1,531
961
949
2,165
24,798
21,966
26,744
38,945
45,090
21,954
17,383
18,347
30,315
32,123
14,990
10,732
12,734
25,384
24,775
6,964
6,651
5,613
4,931
7,354
885
637
682
1,390
3,670
5,635
9,505
10,987
8,210
474
2,530
3,590
2,553
650
1,141
2,134
200
1,701
1,970
1,816
1,760
90
74
70
302
2,720
3,791
3,377
3,396
1,651
2,336
2,343
2,625
862
1,772
1,361
1,024
789
565
982
1,601
305
421
154
272
6,523
7,325
9,029
6,567
11,225
7,943
7,643
8,019
8,012
1,199
1,603
606
564
3,353
559
490
3,097
2,432
993
2,261
1,826
1,640
3,442
1,706
2,471
1,600
2,100
1,889
1,445
2,304
116
53
359
178
17
53
48
22
15
2,327
1,962
3,933
2,497
2,543
3,578
2,631
1,806
1,857
1,276
957
2,116
1,739
1,721
2,757
1,870
1,382
1,312
989
641
1,315
938
1,049
1,358
857
792
684
287
316
802
801
672
1,398
1,013
590
629
137
172
833
200
187
216
226
94
115
1,688
1,870
2,046
1,992
1,414
1,609
Gross proceeds, major groups of corporate issuers
Period
Manufacturing
Commercial and
miscellaneous
Transportation
Bonds
Stocks
Bonds
Stocks
Bonds
1964.
1965.
1966.
2,819
4,712
5,861
228
704
1,208
902
1,153
1,166
220
251
257
944
953
1,856
1967.
1968.
1969.
1970.
1971.
9,894
5,668
4,448
9,192
9,426
1,164
1,311
1,904
1,320
2,152
1,950
1,759
1,888
1,963
2,272
117
116
3,022
2,540
2,390
1972—Sept..
Oct..
Nov..
Dec..
441
269
346
486
162
114
79
103
302
192
429
343
1973—Jan.. .
Feb...
Mar..
Apr..
May.
June.r
July r.
Aug.
Sept.
113
178
772
772
387
703
364
230
258
63
35
125
22
12
25
169
49
78
89
118
177
237
30
133
139
149
120
Communication
Real estate
and financial
Bonds
Stocks
Bonds
Stocks
Bonds
38
60
116
2,139
2,332
3,117
620
604
549
669
808
1,814
1,520
139
189
3,391
3,762
1,747
1,859
1,665
1,899
2,213
1,998
466
1,579
247
47
420
4,217
4,407
5,409
8,016
7,605
718
873
1,326
3,001
4,195
1,786
1,724
1,963
5,053
4,227
193
43
225
83
1,592
2,247
2,159
2,739
3,878
6,601
242
326
271
149
61
152
61
214
12
8
25
649
522
322
491
598
758
472
370
32
313
657
34
1
58
1
166
887
528
1,057
105
111
327
139
143
89
112
129
96
120
96
317
91
236
183
250
83
135
529
319
1,076
150
361
1,099
651
419
334
371
277
1,351
369
410
497
269
90
252
30
58
548
258
355
303
244
320
228
1 Gross proceeds are derived by multiplying principal amounts or
number
of units by offering price.
2
Includes guaranteed issues.
3
Issues not guaranteed.
4 See NOTE to table at bottom of preceding page.
Stocks
Public utility
1
4
6
1
1
15
2
17
3
117
668
19
29
60
5
13
395
290
1,462
743
351
337
223
182
237
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organizations.
NOTE.—Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.
D E C E M B E R 1973 • S E C U R I T Y
ISSUES
A 47
N E T C H A N G E IN O U T S T A N D I N G C O R P O R A T E S E C U R I T I E S
(In millions of dollars)
Derivation of change, all issuers 1
Period
Bonds and notes
All securities
Common and preferred stocks
New issues
Retirements
Net change
New issues
Retirements
Net change
New issues
Retirements
Net change
196 7
196 8
196 9
197 0
197 1
25,964
25,439
28,841
38,707
46,687
7,735
12,377
10,813
9,079
9,507
18,229
13,062
18,027
29,628
37,180
21,299
19,381
19,523
29,495
31,917
5,340
5,418
5,767
6,667
8,190
15,960
13,962
13,755
22,825
23,728
4,664
6,057
9,318
9,213
14,769
2,397
6,959
5,045
2,411
1,318
2,267
-900
4,272
6,801
13,452
1972—1..
II.
Ill
IV.
10,072
11,514
9,776
10,944
2,691
2,389
2,212
2,932
7,381
9,123
7,564
8,012
6,699
7,250
6,118
6,998
2,002
2,191
1,603
2,207
4,698
5,050
4,515
4,790
3,373
4,264
3,659
3,946
690
198
609
725
2,683
4,066
3,049
3,220
1973—1..
II.
8,219
9,418
2,806
2,470
5,412
6,947
4,198
5,769
1,781
1,664
2,417
4,106
4,020
3,648
1,025
806
2,995
2,842
Type of issues
Commercial
and other 2
Manufacturing
Period
Bonds
& notes
Stocks
Transportation 3
Communication
Public
utility
Real estate
and financial i
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
Stocks
Bonds
& notes
Stocks
4,418
3,747
6,641
6,585
-1,842
69
870
2,534
2,242
1,075
853
827
821
1,558
1,778
2,290
987
946
1,104
900
-149
186
36
800
3,669
4,464
6,861
6,486
892
1,353
2,917
4,206
1,579
1,834
4,806
3,925
120
241
94
1,600
1,069
1,687
2,564
5,005
-741
866
1,107
2,017
1972—1..
II.
Ill
IV.
696
704
479
116
423
851
530
290
31
344
459
575
545
774
673
479
267
127
138
179
15
164
28
47
827
1,844
1,410
1,056
872
1,176
1,061
1,735
1,020
806
573
944
402
464
305
89
1,856
1,233
1,456
1,920
425
638
453
580
1973—1. .
II.
135
632
63
-2
-174
119
377
327
127
327
-43
7
844
1,136
1,170
1,276
520
842
185
562
965
1,049
1,244
673
196 8
196 9
1970
197 1
1 Excludes investment companies.
Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
2
NOTE.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues
exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions of bonds into stocks. Retirements
are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose.
O P E N - E N D I N V E S T M E N T COMPANIES
(In millions of dollars)
Sales and redemption
of own shares
Year
Assets (market value
at end of period)
Sales and redemption
of own shares
Assets (market value
at end of period)
Month
Sales i
Redemptions
Net
sales
Total
2
Cash
position 3
Other
1960
2,097
842
1,255
17,026
973
16,053
1961
1962
1963
2,951
2,699
2,460
1,160
1,123
1,504
1,791
1,576
952
22,789
21,271
25,214
980
1,315
1,341
21,809
19,956
23,873
1964
1965
1966
3,404
4,359
4,671
1,875
1,962
2,005
1,528
2,395
2,665
29,116
35,220
34,829
1,329
1.803
2,971
27,787
33,417
31,858
1967
1968
1969
4,670
6,820
6,717
2,745
3,841
3,661
1,927
2,979
3,056
44,701
52,677
48,291
2,566
3,187
3,846
42,135
49,490
44,445
1970
1971
4,624
5,145
2,987
4,751
1,637
774
47,618
56,694
3,649
3,163
43,969
53,531
1
Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends.
2
Market value at end of period less current liabilities.
Sales i
Redemptions
1972—Oct...
Nov...
Dec...
384
387
449
1973—Jan. . .
Feb...
Mar...
Apr...
May..
June..
July. .
Aug. .
Sept...
Oct...
535
327
519
300
285
303
364
239
330
305
2
Cash
position 3
Net
sales
Total
Other
411
645
619
-27
-258
-170
57,525
59,854
59,831
3,719
3,549
3,035
53,806
56,305
56,796
666
530
531
452
446
349
357
432
395
559
-131
-203
-12
-120
-161
-46
-7
-193
-65
-254
56,946
54,083
53,377
50,837
48,588
48,127
50,933
49,553
52,322
51,952
3,015
3,375
3,774
3,837
4,154
4,164
4,594
4,567
4,641
4,168
53,931
50,708
49,603
46,464
44,434
43,963
46,339
44,986
47,681
47,784
3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
NOTE.—Investment Company Institute data based on reports of members, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.
A 48
B U S I N E S S FINANCE • D E C E M B E R 1973
C O R P O R A T E PROFITS, T A X E S , A N D DIVIDENDS
(In billions of dollars)
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
Corporate
capital
consumption
allowances 1
1966
1967
84.2
79.8
34.3
33.2
49.9
46.6
20.8
21.4
29.1
25.3
39.5
43.0
1968
1969
1970
1971
1972
87.6
84.9
74.0
85.1
98.0
39.9
40.1
34.8
37.4
42.7
47.8
44.8
39.3
47.6
55.4
23.6
24.3
24.7
25.1
26.0
24.2
20.5
14.6
22.5
29.3
46.8
51.9
56.0
60.4
65.9
Year
Profits
before
taxes
Income
taxes
Profits
after
taxes
Cash
dividends
Undistributed
profits
Corporate
capital
consumption
allowances 1
III....
IV....
85.5
87.0
86.9
38.4
38.0
36.4
47.1
49.0
50.6
25.1
25.2
24.9
22.0
23.7
25.7
59.8
61.0
62.1
1972—1
II
III....
IV....
92.8
94.8
98.4
106.1
40.6
41.4
42.9
45.9
52.2
53.4
55.6
60.3
25.7
25.9
26.2
26.4
26.5
27.5
29.4
33.9
63.4
66.2
66.0
68.0
1973—1
II
119.6
128.9
52.7
57.4
66.9
71.6
26.9
27.3
40.0
44.2
69.3
70.5
Quarter
I Includes depreciation, capital outlays charged to current accounts, and
accidental damages.
NOTE.—Dept. of Commerce estimates.
adjusted annual rates.
Quarterly data are at seasonally
C U R R E N T ASSETS A N D LIABILITIES OF NONFINANCIAL CORPORATIONS
(In billions of dollars)
Current liabilities
Current assets
Net
working
capital
End of period
Total
Cash
U.S.
Govt,
securities
Notes and accts.
payable
Notes and accts.
receivable
Inventories
U.S.
Govt. 1
Other
Other
U.S.
Govt. 1
Other
Accrued
Federal
income
taxes
Total
Other
196 8
196 9
182.3
185.7
426.5
473.6
48.2
47.9
11.5
10.6
5.1
4.8
168.8
192.2
166.0
186.4
26.9
31.6
244.2
287.9
6.4
7.3
162.4
196.9
14.3
12.6
61.0
76.0
1970—III
IV
185.3
187.8
484.6
490.4
46.5
49.7
7.1
7.6
4.2
4.2
201.0
200.6
193.5
196.0
32.3
32.4
299.3
302.6
6.8
6.6
196.7
200.5
11.5
11.8
84.3
83.7
1971—1..
II.
III
IV
192.0
196.5
200.9
204.9
494.1
498.2
507.2
516.7
48.5
51.1
52.4
55.3
7.8
7.7
7.8
10.4
4.2
3.9
3.9
3.5
201.3
203.3
206.5
207.5
198.5
199.2
201.6
203.1
33.8
33.1
34.9
36.8
302.1
301.7
306.3
311.8
6.1
5.3
5.0
4.9
195.7
195.8
197.4
202.8
13.7
12.4
13.8
14.5
86.6
88.3
90.1
89.7
1972—1..
II.
Ill
IV.
209.6
215.2
219.3
224.3
526.0
534.3
545.5
561.1
55.3
55.7
57.3
60.3
9.9
8.7
7.6
9.7
3.4
2.8
2.9
3.4
211.4
216.3
222.5
228.9
207.2
210.7
215.2
218.2
38.9
40.1
39.8
40.7
316.4
319.1
326.2
336.8
4.9
4.9
4.7
4.0
202.5
204.0
207.6
216.9
15.7
13.4
15.0
16.7
93.3
96.8
98.9
99.2
1973—1..
II.
231.4
237.8
577.1
594.7
61.0
62.2
10.4
9.4
3.2
2.9
234.0
243.7
225.9
233.5
42.5
43.0
345.7
356.9
4.1
4.5
218.1
227.6
18.6
16.5
104.9
108.3
1
Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations' books.
NOTE: Based on Securities and Exchange Commission estimates.
BUSINESS E X P E N D I T U R E S O N NEW P L A N T A N D EQUIPMENT
(In billions of dollars)
Public utilities
Transportation
Manufacturing
Period
Mining
Total
Railroad
Air
Other
Electric
Communications
Gas
and other
Other i
Total
(S,A.
A.R.)
Durable
Nondurable
75.56
79.71
81.21
88.44
100.08
15.96
15.80
14.15
15.64
19.39
15.72
16.15
15.84
15.72
18.61
1.86
1.89
2.16
2.45
2.76
1.86
1.78
1.67
1.80
1.94
2.51
3.03
1.88
2.46
2.41
1.68
1.23
1.38
1.46
1.60
8.94
10.65
12.86
14.48
16.25
2.67
2.49
2.44
2.52
2.84
8.30
10.10
10.77
11.89
13.03
16.05
16.59
18.05
20.07
21.24
1971—III
IV
20.14
22.79
3.40
4.12
3.91
4.32
.55
.59
.42
.45
.39
.56
.37
.37
3.35
3.60
.71
.69
2.62
2.84
4.42
5.26
80.75
83.18
1972—1
II
Ill
IV
19.38
22.01
21.86
25.20
3.29
3.71
3.86
4.77
3.32
3.92
3.87
4.61
.58
.61
.59
.63
.48
.48
.38
.47
.50
.73
.61
.63
.32
.39
.35
.40
3.19
3.61
3.67
4.01
.44
.62
.72
.73
2.72
2.95
2.84
3.39
4.55
4.98
4.97
5.57
86.79
87.12
87.67
91.94
1973—1
II
Ill
IV2
21.50
24.73
25.04
28.81
3.92
4.65
4.84
5.97
3.88
4.51
4.78
5.45
.63
.71
.69
.73
.46
.46
.48
.54
.52
.72
.57
.60
.32
.43
.44
.41
3.45
3.91
4.04
4.85
.50
.68
.77
.89
2.87
3.27
3.19
4.94
5.40
5.24
9. 37
96.19
97.76
100.90
104.94
1974—12
24.19
4.87
4.56
.54
.51
.38
4.14
.52
7.98
108.16
1969
1970
1971
1972
1973 2
1
2
.70
Includes trade, service, construction, finance, and insurance.
Anticipated by business.
NOTE.—Dept. of Commerce and Securities and Exchange Commission
estimates for corporate and noncorporate business; excludes agriculture,
real estate operators, medical, legal, educational, and cultural service, and
nonprofit organizations.
D E C E M B E R 1973 • REAL ESTATE CREDIT
A 49
MORTGAGE D E B T O U T S T A N D I N G
(In billions of dollars)
All properties
Farm
Nonfarm
Other
holders 2
End of
period
1964
All
holders
Financial
institutions i
300.1
U.S.
agencies
Individuals
and
others
11.4
47.7
241.0
1- to 4-family houses 4
All
holders
18.9
Finan- Other
cial
holdinsti3
tutions i ers
All
holders
Total
Finan.
institutions 1
Other
holders
Multifamily and
commercial properties 5
Total
Finan.
institutions 1
Mortgage
type 6
Other
holders
FHAVAunderwritten
Conventional
7.0
11.9
281.2
197.6
170.3
27.3
83.6
63.7
19.9
77.2
204.0
304.6
324.1
344.8
370.0
395.9
212.9
223.6
236.1
251.2
266.8
184.3
192.1
201.8
213.1
223.7
28.7
31.5
34.2
38.1
43.2
91.6
100.5
108.7
118.7
129.0
72.5
80.2
87.9
97.1
105.5
19.1
20.3
20.9
21.6
23.5
81.2
84.1
88.2
93.4
100.2
223.4
240.0
256.6
276.6
295.7
1965
1966
1967
1968
1969
325.8
347.4
370.2
397.5
425.3
264.6
280.8
298.8
319.9
339.1
12.4
15.8
18.4
21.7
26.8
48.7
50.9
53.0
55.8
59.4
21.2
23.3
25.5
27.5
29.5
7.8
8.4
9.1
9.7
9.9
13.4
14.9
16.3
17.8
19.6
1970
1971
1972
451.7
499.9
565.4
355.9
394.4
450.6
33.0
39.4
45.8
62.8
66.2
69.0
.31.2
32.9
35.4
10.1
9.9
10.5
21.1
23.0
24.9
420.5
467.0
530.0
280.2
307.8
346.1
231.3
254.2
288.7
48.9
53.7
57.4
140.3
159.2
183.9
114.5
130.3
151.3
25.8
28.9
32.6
109.2
120.7
131.1
311.3
346.3
398.9
1971—III. . 4 8 5 . 6
IV. . 499.9
383.5
394.4
37.4
39.4
64.6
66.2
32.4
32.9
9.8
9.9
22.6
23.0
453.2
467.0
299.7
307.8
248.0
254.2
51.7
53.7
153.5
159.2
125.8
130.3
27.7
28.9
117.5
120.7
335.7
346.3
1972—1....
II. . .
III..
IV. .
511.7
529.1
547.3
565.4
404.2
418.9
434.6
450.6
41.2
42.7
44.3
45.8
66.4
67.5
68.3
69.0
33.5
34.4
35.0
35.4
9.9
10.2
10.3
10.5
23.6
24.2
24.7
24.9
478.2
494.8
512.3
530.0
314.1
324.6
335.8
346.1
259.6
268.8
279.2
288.7
54.5
55.8
56.6
57.4
164.1
170.2
176.5
183.9
134.6
140.0
145.1
151.3
29.4
30.3
31.3
32.6
123.7
126.6
129.0
131.1
354.5
368.2
383.3
398.9
1973—1'...
II...
III*> .
580.1
600.4
619.8
463.3
480.5
494.9
47.3
49.0
53.0
69.5
71.0
71.9
36.5
37.7
38.7
10.7
11.0
11.4
25.8
26.7
27.3
543.6
562.7
581.1
353.9
365.7
376.6
296.3
306.9
315.0
57.6
58.8
61.6
189.7
197.0
204.5
156.4
162.5
168.5
33.4
34.5
36.0
132.5
411.1
4
1 Commercial banks (including nondeposit trust companies but not
trust depts.), mutual savings banks, life insurance companies, and savings
and loan assns.
2
U.S. agencies include former Federal National Mortgage Assoc. and,
beginning fourth quarter 1968, new Government National Mortgage
Assoc. as well as Federal Housing Admin., Veterans Admin., Public Housing Admin., Farmers Home Admin. They also include U.S. sponsored
agencies—new F N M A , Federal land banks, G N M A (Pools), and the
Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts
small or separate data not readily available) included with "individuals
and others."
3
Derived figures; includes debt held by Federal land banks and farm
debt held by Farmers Home Admin.
For multifamily and total residential properties, see tables below.
5
Derived figures; includes small amounts of farm loans held by savings
and loan assns.
6
Data by type of mortgage on nonfarm 1- to 4-family properties alone
are shown in table below.
MORTGAGE D E B T O U T S T A N D I N G
O N RESIDENTIAL PROPERTIES
MORTGAGE D E B T O U T S T A N D I N G O N
N O N F A R M 1- to 4-FAMILY PROPERTIES
NOTE.—Based on data from Federal Deposit Insurance Corp., Federal
Home Loan Bank Board, Institute of Life Insurance, Depts. of Agriculture and Commerce, F N M A , FHA, PHA, VA, G N M A , FHLMC, and
Comptroller of the Currency.
Figures for first three quarters of each year are F.R. estimates.
(In billions of dollars)
(In billions of dollars)
End of
period
Total
All residential
Multifamily i
Financial
institutions
Total
Financial
institutions
Other
holders
Governmentunderwritten
End of period
Other
holders
Total
FHAinsured
VAguaranteed 1
Conventional
1964
197.6
69.2
38.3
30.9
128.3
196 5
196 6
196 7
196 8
1969
212.9
223.6
236.1
251.2
266.8
73.1
76.1
79.9
84.4
90.2
42.0
44.8
47.4
50.6
54.5
31.1
31.3
32.5
33.8
35.7
139.8
147.6
156.1
166.8
176.6
1970
197 1
197 2
280.2
307.8
346.1
97.3
105.2
113.0
59.9
65.7
68.2
37.3
39.5
44.7
182.9
202.6
233.1
13.9
14.9
1971—III. .
IV. .
299.7
307.8
102.9
105.2
64.4
65.7
38.5
39.5
196.8
202.6
53.3
55.3
56.9
59.1
15.4
16.0
16.6
17.3
1972—1....
II...
III. .
IV..
314.1
324.6
335.8
346.1
107.5
109.6
111.5
113.0
66.8
67.6
68.4
68.2
40.7
42.0
43.1
44.7
206.6
215.0
224.3
233.1
61.1
63.5
65.0
17.9
18.7
20.0
1973—1'...
II...
III*.
353.9
365.7
376.6
113.7
67.9
45.8
240.2
1964
231.1
195.4
35.7
33.6
25.1
8.5
1965
1966
1967
1968
1969
250.1
264.0
280.0
298.6
319.0
213.2
223.7
236.6
250.8
265.0
36.9
40.3
43.4
47.8
54.0
37.2
40.3
43.9
47.3
52.2
29.0
31.5
34.7
37.7
41.3
8.2
8.8
9.2
9.7
10.8
1970
1971
1972
338.2
374.7
422.5
277.1
306.1
347.9
61.1
68.5
74.6
58.0
66.8
76.4
45.8
52.0
59.1
12.2
14.9
17.3
1971—III
IV
364.0
374.7
298.4
306.1
65.6
68.5
64.3
66.8
50.4
52.0
1972—1
II
Ill
IV
382.9
395.8
409.3
422.5
312.9
324.1
336.1
347.9
70.0
71.7
73.2
74.6
68.8
71.3
73.5
76.4
1973—1'
II
III*...
432.8
447.9
461.6
357.4
370.4
380.0
75.5
77.5
81.6
79.0
82.2
85.0
i Structures of five or more units.
NOTE.—Based on data from same source as for "Mortgage Debt Outstanding" table above.
Total
i Includes outstanding amount of VA vendee accounts held by private
investors under repurchase agreement.
NOTE.—For total debt outstanding, figures are FHLBB and F.R.
estimates. For conventional, figures are derived.
Based on data from FHLBB, Federal Housing Admin., and Veterans
Admin.
A 50
REAL ESTATE CREDIT • D E C E M B E R 1973
MORTGAGE LOANS H E L D BY BANKS
(In millions of dollars)
Commercial bank holdings J
Mutual savings bank holdings
Residential
Residential
Other
nonfarm
End of period
Total
Total
FHAinsured
VAguaranteed
Conventional
Total
Farm
Total
FHAinsured
VAguaranteed
Conventional
49,675
54,380
59,019
65,696
70,705
32,387
34,876
37,642
41,433
44,573
7,702
7,544
7,709
7,926
7,960
2,688
2,599
2,696
2,708
2,663
21,997
24,733
27,237
30,800
33,950
14,377
16,366
17,931
20,505
22,113
2,911
3,138
3,446
3,758
4,019
44,617
47,337
50,490
53,456
56,138
40,096
42,242
44,641
46,748
48,682
13,791
14,500
15,074
15,569
15,862
11,408 14,897
11,471 16,272
11,795 17,772
12,033 19,146
12,166 20,654
73,275
82,515
99,314
45,640
52,004
62,782
7,919
8,310
8,495
2,589
3,980
3,203
35,131 23,284
40,714 26,306
51,084 31,751
4,351
4,205
4,781
57,948
61,978
67,556
49,937
53,027
57,140
16,087
16,141
16,013
12,008 21,842
12,074 24,812
12,622 28,505
12,074 24,812
82,515
52,004
8,310
2,980
40,714 X6,306
4,205
61,978
53,027
16,141
85,614
90,114
95,048
99,314
53,937
56,782
59,976
62,782
8,360
8,477
8,515
8,495
2,999
3,141
3,118
3,203
42,578
45,163
48,343
51,084
27,353
28,785
30,415
31,751
4,324
4,547
4,657
4,781
62,978
64,404
65,901
67,556
53,733
54,758
55,889
57,140
16,184 12,144 25,405
16,256 12,325 26,178
16,130 12,463 27,296
16,013 12,622 28,505
103,548
109,114
114,414
65,236
68,650
71,852
8,482
3,211
33,342
56,957 35,224
37,070
4,970
5,240
5,492
68,920
70,634
72,006
58,169
59,397
60,282
1
Includes loans held by nondeposit trust companies but not bank
trust depts.
NOTE.—Second and fourth quarters, F D I C series for all commercial
and mutual savings banks in the United States and possessions. First and
third quarters, estimates based on special F.R. interpolations.
MORTGAGE A C T I V I T Y OF LIFE INSURANCE COMPANIES
(In millions of dollars)
Loans acquired
Loans outstanding (end of period)
Nonfarm
Nonfarm
Period
Total
Total
Farm
FHAinsured
VAguaranteed
Other i
Total
Total
FHAinsured
Farm
VAguaranteed
Other
1945
976
6,637
5,860
1,394
4,466
766
1964
196 5
196 8
196 9
10,433
11,137
10,217
8,470
7,925
7,531
9,386
9,988
9,223
7,633
7,153
6,991
1,812
1,738
1,300
757
733
594
674
553
467
444
346
220
6,900
7,697
7,456
6,432
6,074
6,177
1,047
1,149
994
837
772
540
55,152
60,013
64,609
67,516
69,973
72,027
50,848
55,190
59,369
61,947
64,172
66,254
11,484
12,068
12,351
12,161
11,961
11,715
6,403
6,286
6,201
6,122
5,954
5,701
32,961
36,836
40,817
43,664
46,257
48,838
4,304
4,823
5,240
5,569
5,801
5,773
1970
197 1
197 2
7,181
7,573
8,802
6,867
7,070
8,101
386
322
277
88
101
202
6,393
6,647
7,622
314
503
701
74,375
75,496
77,319
68,726
69,895
71,640
11,419
10,767
9,944
5,394
5,004
4,646
51,913
54,124
57,050
5,649
5,601
5,679
1972—Sept. r
Oct
Nov
Dec
689
718
803
1,830
645
673
746
1,723
29
10
28
16
12
16
13
18
604
647
705
1,689
44
45
57
107
75,588
75,952
76,207
77,319
69,971
70,323
70,567
71,640
10,164
10,053
10,000
9,944
4,746
4,700
4,668
4,646
55,061
55,570
55,899
57,050
5.617
5,629
5,640
5,679
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
711
603
670
702
774
1,101
933
1,034
944
649
542
573
624
694
1,009
849
947
862
16
27
37
20
22
24
26
11
23
20
24
24
22
21
27
19
20
17
613
491
512
582
651
958
804
916
822
62
61
97
78
80
92
84
87
82
77,481
77,510
77,587
77,258
77,400
77,914
78,243
78,657
79,040
71,856
71,892
71,953
71,611
71,721
72,187
72,474
72,839
73,182
9,901
9,806
9,735
9,708
9,627
9,544
9,464
9,388
9,330
4,630
4,613
4,594
4,572
4,549
4,524
4,496
4,471
4,447
57,325
57,473
57,624
57,331
57,545
58,119
58,514
58,980
59,405
5,625
5.618
5,634
5,647
5,679
5,727
5,769
5,818
5,858
1
Includes mortgage loans secured by land on which oil drilling or extracting operations are in process.
D E C E M B E R 1973 • REAL ESTATE CREDIT
A
51
COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Averages
Number
of loans
Period
Total
amount
committed
(millions of
(dollars)
Loan
amount
(thousands
of dollars)
Contract
interest
rate
(per cent)
Maturity
(yrs./mos.)
Capitalization rate
(per cent)
Debt
coverage
ratio
Per cent
constant
2,569
1,788
912
1,664
2,132
3,244.3
2,920.7
2,341.1
3,982.5
4,986.5
1,263
1,633
2,567
2,393
2,339
7.66
8.69
9.93
9.07
8.57
22/8
22/10
23/3
73.6
73.3
74.7
74.9
75.2
9.0
9.6
10.8
10.0
9.6
1.30
1.29
1.32
1.29
1.29
11.1
10.4
9.8
1971 _ N o v .
Dec.
136
133
288.2
290.0
2,119
2,181
9.01
8.96
23/5
23
75.6
74.4
9.9
9.9
1.27
1.30
10.2
10.2
1972—Jan..
Feb.,
Mar.
Apr.
May,
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.,
107
122
220
200
246
268
170
178
152
159
180
130
198.6
423.5
530.4
381.1
399.6
683.2
421.2
515.7
354.1
343.5
371.7
363.9
1,856
3,471
2,411
1,906
1,624
2,549
2,478
2,897
2,329
2,161
2,065
2,799
8.78
8.62
8.50
8.44
8.48
8.55
8.56
8.54
8.58
8.65
8.63
8.64
22/1
22/6
24/2
24/6
23/4
23/0
23/0
23/0
23/4
23/0
23/2
22/8
73.3
73.3
76.3
76.3
76.0
75.4
74.5
74.9
75.7
75.8
74.7
74.4
10.0
9.7
9.5
9.5
9.5
9.5
9.5
9.5
9.5
9.6
9.6
9.8
1.31
1.31
1.29
1.29
1.26
1.29
1.31
1.27
1.28
1.29
1.28
1.37
10.2
10.0
9.7
9.6
9.8
9.8
9.8
9.9
9.8
9.9
9.9
9.9
196 8
1969
197 0
197 1
197 2
22/11
Loanto-value
ratio
(per cent)
21/8
9.5
10.2
NOTE.—American Life Insurance Association data for new commitments of $100,000 and over each on mortgages for multifamily and nonresidential nonfarm properties located largely in the United States. The 15
companies account for a little more than one-half of both the total assets
and the nonfarm mortgages held by all U.S. life insurance companies.
Averages, which are based on number of loans, vary in part with loan
composition by type and location of property, type and purpose of loan,
and loan amortization and prepayment terms. Data for the following are
limited to cases where information was available or estimates could be
made: capitalization rate (net stabilized property earnings divided by
property value); debt coverage ratio (net stabilized earnings divided by
debt service); and per cent constant (annual level payment, including
principal and interest, per $100 of debt). All statistics exclude construction
loans, increases in existing loans in a company's portfolio, reapprovals,
and loans secured by land only.
MORTGAGE A C T I V I T Y OF SAVINGS A N D
L O A N ASSOCIATIONS
F E D E R A L HOME L O A N BANKS
(In millions of dollars)
(In millions of dollars)
Advances outstanding
(end of period)
Loans outstanding (end of period)
Loans made
Period
Period
Total i
New
home
construction
Home
purchase
6,013
3,653
4,243
4,916
4,757
10,830 110,306 5,145
7,828 114,427 5,269
9,604 121,805 5,791
11,215 130,802 6,658
11,254 140,347 7,917
Total 2
FHAConVAinguarvensured 3 anteed 3 tional
1965..
196 6
196 7
196 8
1969
24,192
16,924
20,122
21,983
21,847
197 0
197 1
197 2
21,383 4,150 10,237 150,331 10,178
39,472 6,835 18,811 174,385 13,798
51,408 8,553 26,615 206,387 29,391
6,398
6,157
6,351
7,012
7,658
98,763
103,001
109,663
117,132
124,772
8,494 131,659
10,848 149,739
176,996
1972—Oct...
Nov..,
Dec.. ,
4,522
4,393
4,591
761
714
667
2,423 200,554 15,378 13,334 171,842
2,307 203,266 15,490 13,544 174,232
2,167 206,387 15,639 13,764 176,964
1973- -Jan....
Feb.. .
Mar...
Apr...
May. .
June. .
July...
Aug...
Sept. r .
Oct....
3,702
3,710
4,990
4,989
5,477
5,738
5,059
4,971
3,177
2,780
590
614
887
886
931
903
851
801
572
531
1,970
2,019
2,685
2,762
3,141
3,469
3,079
3,059
1,838
1,548
208,132
210,260
213,259
216,250
219,500
222,801
225,490
228,006
229,413
230,451
29. 581
29, 751
30, 045
30. 182
30: 296
30, 381
30; 270
30, 268
30, 632
30, 332
178,551
180,509
183,214
186,068
189,204
192,420
195,220
197,738
198,781
200,119
1 Includes loans for repairs, additions and alterations, refinancing, etc.,
not shown separately.
2 Includes shares pledged against mortgage loans; beginning 1966, also
includes junior liens and real estate sold on contract; beginning 1967,
also includes downward structural adjustment for change in universe;
and beginning 1973, excludes participation certificates guaranteed by the
F H L M C and certain other related items.
3 Beginning 1973, data for these groups available only on a combined
basis.
Advances
Total
Shortterm 1
Members'
deposits
(end of
Longperiod)
term 2
Repayments
196 5
1966
196 7
196 8
1969
5,007
3,804
1,527
2,734
5,531
4,335
2,866
4,076
1,861
1,500
5,997
6.935
4,386
5,259
9,289
3,074
5,006
3,985
4,867
8,434
2,923
1,929
401
392
855
1,043
1,036
1,432
1,382
1,041
197 0
197 1
197 2
3,256
2,714
4,790
1,929
5,392
4,749
10,615
7.936
7,979
3,081
3,002
2,961
7,534
4,934
5,018
2,331
1,789
2,104
1972—Oct..
Nov.
Dec..
542
445
984
233
246
251
7,045
7,245
7,979
2,440
2,520
2,961
4,605
4,725
5,018
1,334
1,371
2,104
1973—Jan..
Feb..
Mar.
Apr..
May.
June.
July.
Aug.,
Sept.
Oct..
332
415
764
1,187
916
1,093
1,373
1,380
999
728
480
302
288
178
189
104
153
235
212
223
7,831
7,944
8,421
9,429
10,156
11,145
12,365
13,510
14,298
14,799
2,805
2,774
2,975
3,450
3,428
4,016
4,583
4,737
4,834
4,805
5,025
5,170
5,446
5,979
6,728
7,129
7,782
8,773
9,464
9,994
1,306
1,321
1,290
1,142
1,261
1,453
1,183
1,091
1,178
1,264
1 Secured or unsecured loans maturing in 1 year or less.
2
Secured loans, amortized quarterly, having maturities of more than
1 year but not more than 10 years.
NOTE.—FHLBB data.
A 52
REAL ESTATE CREDIT • D E C E M B E R 1973
FEDERAL N A T I O N A L MORTGAGE ASSOCIATION
AUCTIONS
FEDERAL N A T I O N A L MORTGAGE
ASSOCIATION ACTIVITY
(In millions of dollars)
Mortgage
transactions
(during
period)
Mortgage
holdings
End of
period
Total
FHAinsured
VAguaranteed
Purchases
196 8
196 9
197 0
197 1
197 2
7,167
10,945
15,492
17,791
19,791
5,122
7,676
11,063
12,681
14,624
2,046
3,269
4,429
5,110
5,112
1,944
4,120
5,079
3,574
3,699
1972-Oct...
Nov..
Dec..
19,438
19,619
19,791
14,462 4,939
14,558 5,016
14,624 5,112
265
322
306
1973-Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept.,
Oct...
19,982 14,743
20,181 14,872
20,571 15,201
20,791 15,390
21,087 15,581
21,413 15,768
21,772 15,877
22,319 16,085
22,831 16,293
23,348 16,510
5,170
5,222
5,259
5,269
5,335
5,411
5,574
5,761
5,937
6,101
Date of auction
Sales
20
336
211
348
334
522
355
472
516
516
699
633
643
Government-underwritten Conventional home loans
home loans
Mortgage
commitments
29
Out
standing
2,696
6,630
8,047
9,828
8,797
1,287
3,539
5,203
6,497
8,124
1972—Dec. 26
108.7
66.3
7.69
979
447
1,237
7,602
7,452
8,124
1973—Apr. 1 6 . . . .
17
30....
216.6
190.7
7.89
261.2
185.9
7.92
111.0
128.9
88.4
88.2
8.17
8.23
458
478
933
1,211
8,034
7,972
8,139
8,742
9,312
9,778
9,859
9,809
9,602
8,918
May 14
28....
258.3
212.4
187.7
140.0
7.96
8.00
117.6
113.3
84.4
73.9
8.31
8.39
June
11...
25. . .
184.5
199.3
142.2
118.7
8.04
8.09
110.1
95.0
74.1
69.4
8.44
8.51
July
9....
23....
539.3
351.4
244.8
181.4
8.38
8.54
108.4
119.0
72.5
61.7
8.67
8.79
Aug.
6
458.5
20. . . 525.0
201.9
223.8
8.71
8.95
154.3
171.3
77.4
77.2
8.98
9.27
Sept.
4 . . . 551.0
17. . . 138.1
288.9
107.9
9.27
9.37
118.6
48.6
61.5
46.8
9.53
9.68
Oct.
1. . .
15. . .
29. . .
32.5
24.8
28.2
24.1
16.6
21.6
9.11
8.97
8.94
9.1
18.6
17.4
7.1
16.2
9.4
9.43
9.10
9.01
Nov. 12. . .
29. . .
29.3
24.9
23.1
20.9
24.1
31.0
16.7
22.1
8.94
8.90
1,180
1,191
1,102
1,019
724
255
In millions of
dollars
(In millions of dollars)
End of
period
Total
FHAinsured
VAguaranteed
Purchases
In
per cent
In millions of
dollars
8.87
8.81
Mortgage
commitments
GNMA MORTGAGE-BACKED SECURITY PROGRAM
(In millions of dollars)
Sales
Made
during
period
Out
standing
Pass-through securities
Bonds
sold
Period
Applications
received
Securities
issued
1,126.2
4,373.6
3,854.5
452.4
2,701.9
2,661.7
1967
1968
1969
1970
1971
1972
3,348
4,220
4,820
5,184
5,294
5,113
1972-Oct....
Nov...
Dec...
5,203
5,152
5,113
1972—Oct..
Nov.
Dec.
237.8
226.4
440.9
164.1
138.2
299.8
1973-Jan...
Feb.. .
Mar...
Apr.. .
May..
June..
July...
Aug.. .
Sept...
Oct....
5,117
4,984
4,663
4,439
3,980
3,908
4,156
4,455
4,429
4,338
1973—Jan..
Feb.,
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
515.7
167.2
339.4
467.8
563.3
243.1
215.7
174.0
533.8
825.7
323.3
216.8
139.9
182.1
338.8
315.3
384.7
191.3
380.0
234.0
2,756
3,569
4,220
4,634
4,777
592
651
600
550
517
860
1,089
827
621
393
1
1,045
867
615
897
1,171
1,266
1 ,131
738
1,494
NOTE.—GNMA data. Total holdings include a small amount of conventional loans. Data prior to Sept. 1968 relate to Special Assistance and
Management and Liquidating portfolios of former F N M A and include
mortgages subject to participation pool of Government Mortgage Liquidation Trust, but exclude conventional mortgage loans acquired by former
FNMA.
In
per cent
NOTE.—Average secondary market yields are gross—before deduction
of 38 basis-point fee paid for mortgage servicing. They reflect the average
accepted bid yield for home mortgages assuming a prepayment period of
12 years for 30-year loans, without special adjustment for F N M A commitment fees and F N M A stock purchase and holding requirements. Since
Oct. 18, 1971, the maturity on new short-term commitments has been
4 months. Mortgage amounts offered by bidders are total bids received.
G O V E R N M E N T N A T I O N A L MORTGAGE
ASSOCIATION ACTIVITY
Mortgage
transactions
(during
period)
Average
Mortgage
Average
yield
yield
amounts
(short(shortterm
term
commitcommitAcAcOffered
Offered
ments)
ments)
cepted
cepted
Made
during
period
NOTE.—FNMA data. Total holdings include conventional loans. Data
prior to Sept. 1968 relate to secondary market portfolio of former F N M A .
Mortgage holdings include loans used to back bond issues guaranteed by
G N M A . Mortgage commitments made during the period include some
multifamily and nonprofit hospital loan commitments in addition to 1- to
4-family loan commitments accepted in FNMA's free market auction
system, and through the F N M A - G N M A Tandem Plan (Program 18).
Mortgage
holdings
Mortgage
amounts
197 0
197 1
197 2
,315.0
300.0
NOTE.—GNMA data. Under the Mortgage-Backed Security Program,
G N M A guarantees the timely payment of principal and interest on both
pass-through and bond-type securities, which are backed by a pool of
mortgages insured by F H A or Farmers Home Admin, or guaranteed by
VA and issued by an approved mortgagee. To date, bond-type securities
have been issued only by F N M A and FHLMC.
DECEMBER 1973 • REAL ESTATE CREDIT
GOVERNMENT-UNDERWRITTEN
L O A N S MADE
HOME-MORTGAGE YIELDS
(In per cent)
A
53
RESIDENTIAL
(In millions of dollars)
Primary market
(conventional loans)
Secondary
market
VA-guaranteed
FHA-insured
FHLBB series
(effective rate)
Period
Yield
on F H A insured
newhome
loans
HUD
series
New
homes
Existing
homes
New
homes
1968
1969.
1970.
1971.
1972,
6.97
7.81
8.44
7.74
7.60
7.03
7.82
8.35
7.67
7.52
7.12
7.99
8.52
7.75
7.64
7.21
8.29
9.03
7.70
7.52
1972-—Nov
Dec
7.64
7.66
7.57
7.59
7.70
7.70
7.57
7.56
1973-- J a n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.'
Nov
7.68
7.70
7.68
7.71
7.71
7.79
7.87
7.94
8.17
8.31
8.36
7.68
7.72
7.69
7.70
7.77
7.79
7.84
8.01
8.26
8.50
8.56
7.70
7.75
7.80
7.90
7.95
8.05
8.40
8.85
8.95
8.80
7.55
7.56
7.63
7.73
7.79
7.89
8.19
Total
1965.
1966.
1967.
1968.
1969,
1970.
1971.
1972.
9.18
8.97
NOTE.—Annual data are averages of monthly figures. The
Housing and Urban Development (FHA) data are based on
opinion reports submitted by field offices on prevailing local
conditions as of the first of the succeeding month. Yields on
FHA-insured mortgages are derived from weighted averages of
private secondary market prices for Sec. 203, 30-year mortgages
with minimum downpayment and an assumed prepayment
at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates. The H U D (FHA) interest rates on conventional
first mortgages in primary markets are unweighted and are
rounded to the nearest 5 basis points. The FHLBB effective
rate series reflects fees and charges as well as contract rates (as
shown in the table on conventional first-piortgage terms, p.
A-35) and an assumed prepayment at end of 10 years.
Mortgages
Mortgages
Period
ExNew isting
homes homes
Property
improvements 2
Total 3
New
homes
Existing
homes
5,760
4,366
4,516
4,924
5,570
591
583
642
1,123
1,316
634
641
623
656
693
2,652
2,600
3,405
3,774
4,072
876
980
1,143
1,430
1,493
1,776
1,618
2,259
2,343
2,579
11,982 2,667 5,447
14,689 3,900 6,475
12,320 3,459 4,608
3,251
3,641
3,448
617
674
805
3,440
5,961
8,293
1,311
1,694
2,539
2,129
4,267
5,754
8,689
7,320
7,150
8,275
9,129
1,705
1,729
1,369
1,572
1,551
Projects 1
1972--Oct...
Nov..
Dec..
847
985
964
255
261
190
343
331
245
155
296
444
94
97
85
720
790
715
204
246
220
516
544
495
1973--Jan...
Feb..
Mar..
Apr..
May.
June.
July..
Aug..
Sept..
Oct
834
710
969
620
'589
650
559
'537
'485
254
162
195
151
158
153
143
100
90
324
235
268
223
228
229
250
195
177
197
262
440
172
122
207
100
'167
'134
59
52
65
74
81
61
66
75
84
681
592
596
621
634
646
666
569
565
652
218
187
185
187
198
182
204
193
184
221
463
405
411
434
436
464
462
376
381
431
1
Monthly figures do not reflect mortgage amendments included in annual
totals.
2
Not ordinarily secured by mortgages.
3
Includes refinancing loans, mobile home loans and also a small amount of
alteration and repair loans, not shown separately; only such loans in amounts
of more than $ 1,000 need be secured.
NOTE.—FHA and VA data. FHA-insured loans represent gross amount
of insurance written; VA-guaranteed loans, gross amounts of loans closed.
Figures do not take into account principal repayments on previously insured
or guaranteed loans. For VA-guaranteed loans, amounts by type are derived
from data on number and average amount of loans closed.
FEDERAL HOME LOAN MORTGAGE
CORPORATION ACTIVITY
D E L I N Q U E N C Y R A T E S O N HOME MORTGAGES
(Per 100 mortgages held or serviced)
(In millions of dollars)
Loans not in foreclosure
but delinquent for—
End of period
Loans in
foreclosure
Total
30 days
60 days
90 days
or more
1965
1966
1967
1968
1969
3.29
3.40
3.47
3.17
3.22
2.40
2.54
2.66
2.43
2.43
.55
.54
.54
.51
.52
.34
.32
.27
.23
.27
.40
.36
.32
.26
.27
1970
1971
1972
3.64
3.93
4.65
2.67
2.82
3.42
.61
.65
.78
.36
.46
.45
.33
.46
.48
1971—11
Ill
IV
3.27
3.59
3.93
2.36
2.54
2.82
.53
.62
.65
.38
.43
.46
.38
.41
.46
3.16
3.27
3.82
J4.66
\4.65
2.21
2.38
2.74
3.41
3.42
.58
.53
.65
.79
.78
.37
.36
.43
.46
.45
.50
.48
.52
.50
.48
3.63
3.84
4.36
2.52
2.81
3.10
.68
.64
.78
.43
.39
.48
1972—1
II
Ill
T\/ 1
IV
1973_I
II
Ill
1
.
Mortgage
transactions
(during period)
Mortgage
commitments
End of period
First line is old series; second line is new series.
NOTE.—Mortgage Bankers Association of America data from
reports on 1- to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held by more than 400 respondents, including
mortgage bankers (chiefly), commercial banks, savings banks, and
savings and loan associations.
Mortgage
holdings
FHAVA
Conventional
Purchases
Sales
Made
during
period
Outstanding
197 0
197 1
197 2
325
968
1,789
325
821
1,503
147
286
325
778
1,298
64
408
1,606
182
198
1972—Sept.
Oct.
Nov.
Dec.
1,545
1,631
1,743
1,789
1,408
1,439
1,491
1,503
137
192
253
286
66
102
128
143
13
9
10
87
136
189
89
93
318
371
293
198
1973—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
1,761
1,677
1,718
1,784
1,906
2,029
2,158
2,307
2,423
1,517
1,535
1,589
1,646
1,695
1,716
1,714
1.728
1.729
244
142
128
138
211
313
444
579
694
76
76
119
126
147
154
140
161
126
99
150
68
51
17
21
142
166
141
193
187
159
139
208
143
226
300
295
343
344
316
278
291
288
NOTE.—FHLMC data. Data for 1970 include only the period beginning
Nov. 26 when the F H L M C first became operational. Holdings, purchases,
and sales include participations as well as whole loans. Mortgage holdings include loans used to back bond issues guaranteed by G N M A . Commitment data
cover the conventional and Govt.-underwritten loan programs.
A 54
C O N S U M E R CREDIT • D E C E M B E R 1973
T O T A L CREDIT
(In millions of dollars)
Instalment
End o f period
Total
Automobile
paper
Other
consumer
goods
paper
Total
Noninstalment
Home
improvement
loans 1
Personal
loans
Total
Singlepayment
loans
Charge
accounts
Service
credit
1940.
1945.
1950.
1955.
1960.
8,338
5,665
21,471
38,830
56,141
5,514
2,462
14,703
28,906
42,968
2,071
455
6,074
13,460
17,658
1,827
816
4,799
7,641
11,545
371
182
1,016
1,693
3,148
1,245
1.009
2,814
6,112
10,617
2,824
3,203
6,768
9,924
13,173
800
746
1,821
3,002
4,507
1,471
1,612
3,367
4,795
5,329
553
845
1,580
2,127
3,337
1965,
1966
1967
1968.
1969.
89,883
96,239
100,783
110,770
121,146
70,893
76,245
79,428
87,745
97,105
28,437
30,010
29,796
32,948
35,527
18,483
20,732
22,389
24,626
28,313
3,736
3,841
4,008
4,239
4,613
20,237
21,662
23,235
25,932
28,652
18,990
19,994
21,355
23,025
24,041
7,671
7,972
8,558
9,532
9,747
6,430
6,686
7,070
7,193
7,373
4,889
5,336
5,727
6,300
6,921
1970,
1971 ,
1972.
127,163
138,394
157,564
102,064
111,295
127,332
35,184
38,664
44,129
31,465
34,353
40,080
5,070
5,413
6,201
30,345
32,865
36,922
25,099
27,099
30,232
9,675
10,585
12,256
7,968
8,350
9,002
7,456
8,164
8,974
150,576
152,968
157,564
122,505
124,325
127,332
43,162
43,674
44,129
37,216
38,064
40,080
6,124
6,174
6,201
36,003
36,413
36,922
28,071
28,643
30,232
11,717
11,917
12,256
7,780
8,010
9,002
8,574
8,716
8,974
157,227
157,582
159,320
161,491
164,277
167,083
169,148
171,978
173,035
174,840
127,368
127,959
129,375
131,022
133,531
136,018
138,212
140,810
142,093
143,610
44,353
44,817
45,610
46,478
47,518
48,549
49,352
50,232
50,557
51,092
39,952
39,795
39,951
40,441
41,096
41,853
42,575
43,505
44,019
44,632
6,193
6,239
6,328
6,408
6,541
6,688
6,845
7,009
7,120
7,235
36,870
37,108
37,486
37,695
38,376
38,928
39,440
40,064
40,397
40,651
29,859
29,623
29,945
30,469
30,746
31,065
30,936
31,168
30,942
31,230
12,204
12,409
12,540
12,686
12,817
12,990
12,968
13,111
13,088
13,145
8,357
7,646
7,702
8,036
8,319
8,555
8,479
8,605
8,335
8,590
9,298
9,568
9,703
9,747
9,610
9,520
9,489
9,452
9,519
9,495
1972—Oct
Nov
Dec
1973-
Feb
Mar
Apr
June
July
Aug
Sept
i Holdings of financial institutions; holdings of retail outlets are ineluded in "Other consumer goods paper."
hold, family, and other personal expenditures, except real estate mortgage
loans. For back figures and description of the data, see ''Consumer Credit,"
Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965
and BULLETINS for Dec. 1968 and Oct. 1972.
NOTE.—Consumer credit estimates cover loans to individuals for house-
I N S T A L M E N T CREDIT
(In millions of dollars)
Financial institutions
End of period
Total
Total
Commercial
banks
Finance
companies 1
Credit
unions
Retail outlets
Miscellaneous
lenders 1
Total
Automobile
dealers 2
Other
retail
outlets
1940.
1945.
1950.
1955.
I960.
5,514
2,462
14,703
28,906
42,968
3,918
1,776
11,805
24,398
36,673
1,452
745
5.798
10,601
16,672
2,278
910
5,315
11,838
15,435
171
102
590
1,678
3,923
17
19
102
281
643
1,596
686
2,898
4,508
6,295
167
28
287
487
359
1,429
658
2,611
4,021
5,936
1965.,
1966.,
1967.,
1968.
1969.,
70,893
76,245
79,428
87,745
97,105
61,102
65,430
67,944
75,727
83,989
28,962
31,319
33,152
37,936
42,421
23,851
24,796
24,576
26,074
27,846
7,324
8,255
9,003
10,300
12,028
965
1,060
1,213
1,417
1,694
9,791
10,815
11,484
12,018
13,116
315
277
287
281
250
9,476
10,538
11,197
11,737
12,866
1970,
1971,
1972,
102,064
111,295
127,332
88,164
97,144
111,382
45,398
51,240
59,783
27,678
28,883
32,088
12,986
14,770
16,913
2,102
2,251
2,598
13,900
14,151
15,950
218
226
261
13,682
13,925
15,689
1 9 7 2 - -Oct
122,505
124,325
127,332
108,405
109,673
111,382
58,266
58,878
59,783
30,970
31,427
32,088
16,556
16,742
16,913
2,613
2,626
2,598
14,100
14,652
15,950
257
259
261
13,843
14,393
15,689
1973-
127,368
127,959
129,375
131,022
133,531
136,018
138,212
140,810
142,093
143,610
111,690
112,630
114,190
115,727
118,165
120,450
122,479
124,823
126,040
127,307
60,148
60,582
61,388
62,459
63,707
64,999
66,065
67,381
67,918
68,627
32,177
32,431
32,750
33,078
33,859
34,367
35,020
35,634
35,993
36,365
16,847
16,973
17,239
17,455
17,832
18,269
18,517
18,961
19,207
19,339
2,518
2,644
2,813
2,735
2,767
2,815
2,877
2,847
2,922
2,976
15,678
15,329
15,185
15,295
15,366
15,568
15,733
15,987
16,053
16,303
263
266
272
278
284
289
293
296
297
300
15,415
15,063
14,913
15,017
15,082
15,279
15,440
15,691
15,756
16,003
July
i Finance companies consist of those institutions formerly classified
as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and mutual
savings banks.
2
Automobile paper only; other instalment credit held by automobile
dealers is included with "Other retail outlets."
See also NOTE to table above.
D E C E M B E R 1973 d C O N S U M E R C R E D I T
A 55
M A J O R HOLDERS OF I N S T A L M E N T CREDIT
(In millions of dollars)
Commercial banks
Automobile
paper
Finance companies
Other consumer
goods paper
Total
Mobile
homes
Credit
cards
Other
Home
improvement
loans
Personal
loans
Total
Automobile
paper
Other consumer
goods paper
Purchased
Direct
1,452
745
5,798
10,601
16,672
339
66
1,177
3,243
5,316
276
143
1,294
2,062
2,820
232
114
1,456
2,042
2,759
834
1,338
2,200
440
312
1,037
1,916
3,577
2,278
910
5,315
11,838
15,435
1,253
202
3,157
7,108
7,703
159
40
692
1,448
2,553
28,962
31,319
33,152
37,936
42,421
10,209
11,024
10,972
12,324
13,133
5,659
5,956
6,232
7,102
7,791
4,166
4,681
5,469
1,307
2,639
5,387
6,082
2,571
2,647
2,731
2,858
2,996
6,357
7,011
7,748
8,958
9,780
23,851
24,796
24,576
26,074
27,846
9,218
9,342
8,627
9,003
9,412
4,343
4,925
5,069
5,424
5,775
45,398
51,240
59,783
12,918
13,837
16,320
7,888
9,277
10,776
4,423
5,786
3,792
4,419
5,288
7,113
4,501
5,122
3,071
3,236
3,544
10,616
11,547
12,947
27,678
28,883
32,088
9,044
9,577
10,174
2,464
2,561
2,916
3,237
3,052
3,589
58,266
58,878
59,783
15,996
16,180
1<S,320
10,534
10,674
10,776
5,590
5,690
5,786
4,782
4,868
5,288
5,053
5,063
5,122
3,555
3,557
3,544
12,756
12,846
12,947
30,970
31,427
32,088
9,914
10,026
10,174
2,862
2,899
2,916
3,430
3,476
3,589
60,148
60,582
61,388
62,459
63,707
64,999
66,065
67,381
67,918
68,627
16,464
16,680
16,951
17,327
17,716
18,138
18,439
18,771
18,886
19,123
10,889
10,977
11,216
11,436
11,680
11,866
12,023
12,190
12,160
12,262
5,839
5,932
6,035
6,163
6,321
6,473
6,629
6,825
6,956
7,106
5,311
5,283
5,243
5,290
5,360
5,502
5,603
5,792
5,909
5,991
5,135
5,158
5,289
5,401
5,538
5,688
5,815
5,923
5,978
6,012
3,527
3,515
3,538
3,581
3,635
3,700
3,774
3,863
3,903
3,950
12,983
13,037
13,116
13,261
13,457
13,632
13,782
14,017
14,126
14,183
32,177
32,431
32,750
33,078
33,859
34,367
35,020
35,634
35,993
36,365
10,177
10,267
10,419
10,617
10,872
11,121
11,365
11,583
11,721
11,859
2,928
2,909
2,943
2,991
3,025
3,081
3,132
3,187
3,235
3,269
3,644
3,752
3,796
3,831
3,985
4,002
4,103
4,194
4,265
4,316
165
110
1
Finance companies consist of those institutions formerly classified as
sales finance, consumer finance, and other finance companies.
Mobile
homes
Other
1
Home
improvement
loans
See also NOTE to table at top of preceding page,
I N S T A L M E N T C R E D I T H E L D BY O T H E R
FINANCIAL LENDERS
NONINSTALMENT CREDIT
(In millions of dollars)
(In millions of dollars)
Total
Automobile
paper
Other
consumer
goods
paper
Home
improvement
loans
Personal
loans
188
121
692
1,959
4,566
36
16
159
560
1.460
7
4
40
130
297
102
313
775
132
91
391
956
2,034
8,289
9,315
10,216
11,717
13,722
3,036
3,411
3,678
4,238
4,941
498
588
654
771
951
933
980
1,085
1.215
1,443
3,822
4,336
4,799
5,493
6,387
15,088
17,021
19,511
5,116
5,747
6,598
1,177
1,472
1,690
1,800
1,930
2,160
19,169
19,368
19,511
6.461
6,535
6,598
1,656
1,675
1,690
19,365
19,617
20,052
20,190
20,599
21,084
21,394
21,808
22,129
22,315
6,560
6,627
6,752
6,820
6,966
7,135
7,232
7,392
7,493
7,548
1,680
1,698
1,732
1,748
1,785
1,828
1,853
1,893
1,920
1,935
13
10
Charge accounts
Total
End of period
Commercial
banks
Other
financial
institutions
Retail
outlets
Credit
cards 1
1940
1945
1950
1955
1960
2,824
3,203
6,768
9,924
13,173
636
674
1,576
2,635
3,884
164
72
245
367
623
1,471
1,612
3,291
4,579
4,893
76
216
436
6,995
7,872
9,063
196 5
196 6
196 7
196 8
196 9
18,990
19,994
21,355
23,025
24,041
6,690
6,946
7,478
8,374
8,553
981
1,026
1,080
1,158
1,194
5,724
5,812
6,041
5,966
5,936
706
874
1,029
1,227
1,437
2,157
2,165
2,160
8,895
8,993
9,063
197 0
197 1
197 2
25,099
27,099
30,232
8,469
9,316
10,857
1,206
1,269
1,399
6,163
6,397
7,055
1,805
1,953
1,947
2,138
2,162
2,209
2.216
2,250
2,294
2,338
2,375
2,408
2,438
8,987
9,130
9,359
9,406
9,598
9,827
9,971
10,148
10,308
10,394
1972—Oct....
Nov
Dec....
28,071
28,643
30,232
10,339
10,527
10,857
1.378
1,390
1,399
5,794
6,081
7,055
1,986
1,929
1,947
1973—Jan....
Feb....
Mar
Apr
May...
June...
July. . .
Aug
Sept....
Oct
29,859
29,623
29,945
30,469
30,746
31,065
30,936
31,168
30,942
31,230
10,825
10,989
11,074
11,237
11,359
11,520
11,491
11,655
11,608
11,654
1.379
1,420
1,466
1,449
1,458
1,470
1,477
1,456
1,480
1,491
6,402
5,735
5,825
6,129
6,387
6,544
6,424
6,475
6,229
6,554
1,955
1,911
1,877
1,907
1,932
2,011
2,055
2,130
2,106
2,036
NOTE.—Other financial lenders consist of credit unions and miscellaneous lenders. Miscellaneous lenders include savings and loan associations and mutual savings banks.
Singlepayment
loans
i Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank-credit-card accounts outstanding are included
in estimates of instalment credit outstanding.
See also NOTE to table at top of preceding page.
A 56
C O N S U M E R CREDIT • DECEMBER 1973
I N S T A L M E N T CREDIT E X T E N D E D A N D REPAID, BY T Y P E OF CREDIT
(In millions of dollars)
Total
Automobile paper
Other consumer
goods paper
Home improvement
loans
Personal loans
Period
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
S.A.i
N.S.A.
Extensions
1965
1966
1967
1968
1969
1970
1971
1972
78,661
82,832
87,171
99,984
109,146
112,158
124,281
142,951
1972—Oc t
Dec
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
27,208
27,192
26,320
31,083
32,553
29,794
34,873
40,194
22,857
26,329
29,504
33,507
38,332
43,873
47,821
55,599
26,326
27,088
28,978
32,860
35,430
35,528
38,343
43,152
2,270
2,223
2,369
2,534
2,831
2,963
3,244
4,006
12,404
12,846
12,627
12,337
12,806
13,643
3,504
3,620
3,763
3,663
3,505
3.195
4,971
5,118
4,876
4,831
5,202
6,171
335
327
351
347
321
280
3,594
3,781
3,637
3,496
3,778
3,997
13,304
13,434
13,852
13,465
13,932
13,646
14,542
14,294
13,691
14,149
11,923
11,214
13,681
13,661
14,792
14,608
14,812
15,099
12,624
14,454
4,006
3,972
4,001
3,822
3,989
3,762
3,930
3,968
3,939
3,912
3,393
3,407
4,164
4,101
4,409
4,313
4,177
4,252
3,476
4.196
5,282
5,245
5,349
5,563
5.504
5.505
5,943
5,961
5,537
5,911
4,949
4,252
5,169
5,378
5,698
5,678
5,753
6,065
5,217
5,894
329
364
406
365
374
400
433
408
410
415
259
300
377
372
431
450
472
471
420
439
3,687
3,853
4,096
3,715
4,065
3,979
4,236
3,957
3,805
3,911
3,322
3,255
3,971
3,810
4,254
4,167
4,410
4,311
3,511
3,925
Repayments
23,706
25,619
26,534
27,931
29,974
30,137
31,393
34,729
70,463
77,480
83,988
91,667
99,786
107,199
115,050
126,914
1965
1966
1967
1968
1969
1970
1971
1972
23,938
25,663
27,405
30,163
32,710
33,835
35,823
39,095
2,112
2,118
2,202
2,303
2,457
2,506
2,901
3,218
20,707
24,080
27,847
31,270
34,645
40,721
44,933
49,872
1972—Oc t
Nov
Dec
10,908
11,128
10,964
11,025
10,986
10,636
3,041
3,023
2,977
3,145
2,993
2,740
4,354
4,444
4,341
4,360
4,354
4,155
263
271
263
272
271
253
3,250
3,390
3,383
3,248
3,368
3,488
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
11,355
11,437
11,808
12,061
11,941
12,034
12,544
12,399
12,332
12,449
11,887
10,623
12,265
12,014
12,283
12,121
12,618
12,501
11,341
12,937
3,097
3,145
3,225
3,218
3,261
3,253
3,334
3,293
3,406
3,427
3,169
2,943
3.371
3,233
3,369
3,282
3,374
3.372
3,151
3,661
4,649
4,627
4,755
4,963
4,917
4,955
5,141
5,168
5,072
5,149
5,077
4,409
5,013
4,888
5,043
4,921
5,031
5,135
4,703
5,281
267
275
286
294
290
300
308
298
322
308
267
254
288
292
298
303
315
307
309
324
3,342
3,390
3,542
3,586
3,473
3,526
3,761
3,640
3,532
3,565
3,374
3,017
3,593
3,601
3,573
3,615
3,898
3,687
3,178
3,671
Net change in credit outstanding
1965
1966
1967
1968
1969
1970
1971
1972
3,502
1,573
-214
3,152
2,579
-343
3,480
5,465
8,198
5,352
3,183
8,317
9,360
4,959
9,231
16,037
2
2,150
2,249
1,657
2,237
3,687
3,152
2,888
5,727
158
105
167
231
374
457
343
788
2,388
1,425
1,573
2,697
2,720
1.693
2,520
4,057
1972—Oc t
Nov
Dec
1,496
1,718
1,663
1,312
1,820
3,007
463
597
786
518
512
455
617
674
535
471
848
2,016
72
56
88
75
50
27
344
391
254
248
410
509
1973—Jan.
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
1,949
1.997
2,044
1,404
1,991
1,612
1.998
1,895
1,359
1,700
36
591
1,416
1,647
2,509
2,487
2,194
2,598
1,283
1,517
909
827
776
604
728
509
596
675
533
485
224
464
793
868
1,040
1,031
803
880
325
535
633
618
594
600
587
550
802
793
465
762
-128
-157
156
490
655
757
722
930
514
613
62
89
120
71
84
100
125
110
88
107
-8
46
89
80
133
147
157
164
111
115
345
463
554
129
592
453
475
317
273
346
-52
238
378
209
681
552
512
624
333
254
1
Includes adjustments for differences in trading days.
2 Net changes in credit outstanding are equal to extensions less repayments.
NOTE.—Estimates are based on accounting records and often include
financing charges. Renewals and refinancing of loans, purchases and
sales of instalment paper, and certain other transactions may increase
the amount of extensions and repayments without affecting the amount
outstanding.
For back figures and description of the data, see "Consumer
Credit," Section 16 ( N e w ) of Supplement to Banking and Monetary
Statistics, 1965, and BULLETINS for Dec. 1968 and Oct. 1972.
D E C E M B E R 1973 • C O N S U M E R C R E D I T
A 57
I N S T A L M E N T C R E D I T E X T E N D E D A N D REPAID, BY H O L D E R
(In millions of dollars)
Other financial
lenders
Finance companies
Commercial banks
Total
Retail outlets
Period
S.A.1
N.S.A.
S.A.1
S.A.1
N.S.A.
N.S.A.
S.A.1
N.S.A.
S.A.1
N.S.A.
Extensions
1965
1966
1967
1968
1969
1970
1971
1972
25,265
25,897
26,461
30,261
32,753
31,952
32,935
38,464
29,528
30,073
31,382
37,395
40,955
42,960
51,237
59,339
78,661
82,832
87,171
99,984
109,146
112,158
124,281
142,951
14,430
16,494
18,090
19,122
20,240
21,526
22,143
24,541
9,438
10,368
11,238
13,206
15,198
15,720
17,966
20,607
1972—Oc t
Nov
Dec
12,404
12,846
12,627
12,337
12,806
13,643
5,227
5,413
5,313
5,224
5,059
5,096
3,334
3,434
3,355
3,348
3,581
3,766
1.705
1,792
1.791
1,679
1,704
1,642
2,138
2,207
2,168
2,086
2,462
3,139
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
13,304
13,434
13,852
13,465
13,932
13,646
14,542
14,294
13,691
14,149
11,923
11,214
13,681
13,661
14,792
14,608
14,812
15,099
12,624
14,454
5,762
5,664
5,853
5,644
5,859
5,684
5,976
6,195
5,809
6,060
5,246
4,826
5,890
5,973
6,356
6,219
6,232
6,518
5,376
6,169
3,517
3,557
3,654
3,555
3,820
3,584
3,824
3,685
3,602
3,623
3,033
2,972
3,598
3,576
4,027
3,817
3,931
3,877
3,189
3,765
1.706
1,964
2,131
1.792
1,868
1,978
2,110
1,943
2,019
1,951
1,509
1,711
2,083
1,832
2,060
2,211
2,233
2,194
1,912
1,968
2,319
2,249
2,214
2,474
2,385
2,400
2,632
2,471
2,261
2,515
2,135
1,705
2,110
2,280
2,349
2,361
2,416
2,510
2,147
2,552
Repayments
1965
1966
1967
1968
1969
1970
1971
1972
25,663
27,716
29,549
32,611
36,470
40,398
45,395
50,796
70,463
77,480
83,988
91,667
99,786
107,199
115,050
126,914
13,433
15,470
17,421
18,588
19,142
20,742
21,892
22,742
8,311
9,342
10,337
11,705
13,193
14,354
16,033
18,117
23,056
24,952
26,681
28,763
30,981
31,705
31,730
35,259
1972—Oc t
Nov
Dec
10,908
11,128
10,964
11,025
10,986
10,636
4,408
4,531
4,485
4,524
4,447
4,191
3,023
3,061
2,952
3,028
3,124
3,105
1,550
1,578
1,561
1,572
1,505
1,499
1,927
1,958
1,966
1,901
1,910
1,841
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
11,355
11,437
11,808
12,061
11,941
12,034
12,544
12,399
12,332
12,449
11,887
10,623
12,265
12,014
12,283
12,121
12,618
12,501
11,341
12,937
4,734
4,684
4,870
4,919
4,976
4,890
5,112
5,146
5,167
5,212
4,881
4,392
5,084
4,902
5,108
4,927
5,166
5,202
4,839
5,460
3,033
3,030
3,141
3,251
3,100
3,241
3,312
3,241
3,144
3,287
2,944
2,718
3,279
3,248
3,246
3,309
3,278
3,263
2,830
3,393
1,532
1,625
1,665
1.693
1,612
1.694
1,771
1,738
1,757
1,703
1,655
1,459
1,648
1,694
1,651
1,726
1,923
1,780
1,591
1,782
2,056
2,098
2,132
2,198
2,253
2,209
2,349
2,274
2,264
2,247
2,407
2,054
2,254
2,170
2,278
2,159
2,251
2,256
2,081
2,302
Net change in credit outstanding
3,865
2,357
1,833
4,784
4,485
2,977
5,842
8,543
8,198
5,352
3,183
8,317
9,360
4,959
9,231
16,037
1965
1966
1967
1968
1969
1970
1971
1972
2
1,127
1,026
901
1,501
2,005
1,366
1,933
2,490
2,209
945
-220
1,498
1,772
-168
1,205
3,205
997
1,024
669
534
1,098
784
251
1,799
1972—Oc t
Nov
Dec
1,496
1,718
1,663
1,312
1,820
3,007
819
882
828
700
612
905
311
373
403
320
457
661
155
214
230
107
199
143
211
249
202
185
552
1,298
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
1,949
1.997
2,044
1,404
1,991
1,612
1.998
1,895
1,359
1,700
36
591
1,416
1,647
2,509
2,487
2,194
2,598
1,283
1,517
1,028
980
983
725
883
794
864
1,049
642
848
365
434
806
1,071
1,248
1,292
1,066
1,316
537
709
484
527
513
304
720
343
512
444
458
336
89
254
319
328
781
508
653
614
359
372
174
339
466
99
256
284
339
205
262
248
-146
252
435
138
409
485
310
414
321
186
263
151
82
276
132
191
283
197
-3
268
-272
-349
-144
110
71
202
165
254
66
250
1
Includes adjustments for differences in trading days.
2
Net changes in credit outstanding are equal to extensions less repayments, except in certain months when data for extensions and repayments have been adjusted to eliminate duplication resulting from large
transfers of paper. In those months the differences between extensions
and repayments for some particular holders do not equal the changes in
their outstanding credit. Such transfers do not affect total instalment
credit extended, repaid, or outstanding.
NOTE.—Other financial lenders include credit unions and miscellaneous lenders. See also NOTE to preceding table and footnote 1 at bottom of p.
A-54.
A 58
INDUSTRIAL PRODUCTION: S.A. • D E C E M B E R 1973
M A R K E T GROUPINGS
(1967 = 100)
1967
proportion
Grouping
1972
1972
age
Oct.
Nov.
1973
Dec.
100.0 115.2 119.2 120.2 121.1
Total index
Products, total
Final products
Consumer goods
Equipment
Intermediate products
Materials
Jan.
Feb.
Mar.
Apr.
June
July
Aug. r Sept. r
Oct.
124.8 125.6
126.7
126.5 126.8
127.0
117.3
115.3
127.0
98.9
124.7
122.3
118.6
116.3
127.4
100.7
127.6
122.8
119.1
116.8
127.7
101.5
127.7
124.4
120.7
118.6
129.8
102.9
128.4
124.5
121.5
119.3
130.2
104.1
129.5
126.7
121.7
119.6
130.8
104.1
129.4
127.0
122.0
120.0
130.9
104.7
129.3
127.7
122.9
120.8
131.8
105.7
130.5
128.3
123.7
121.3
131.9
106.6
132.0
129.0
124.2
122.1
132.8
107.3
132.5
130.9
123.7
121.4
131.2
107.6
132.1
130.9
124.3
122.6
132.4
109.0
131.0
131.3
124.5
122.8
132.9
108.6
130.9
131.2
7.86
2.84
1.87
.97
125.7 129.1
127.7 132.3
112.7 118.9
156.5 158.0
131.0
138.3
126.6
160.6
135.0
142.9
133.9
160.0
136.0
138.6
130.2
155.0
137.8
141.7
131.5
161.4
140.4
144.1
130.8
169.9
140.5
141.7
128.1
167.5
141.5
142.6
129.8
167.0
141.8 142.4
142.6 141.7
132.6 134.0
161.9 156.7
134.0
121.1
103.9
154.2
138.2
129.8
118.4
151.8
139.1
132.5
122.5
151.5
5.02
1.41
.92
.49
1.08
2.53
124.5
124.6
144.5
87.5
132.6
121.0
127.3 126.9 130.5 134.5
124.1 121.7 133.3 140.7
147.9 141.9 151.1 153.2
79.4 83.9 99.9 117.4
137.6 137.6 139.0 142.1
124.7 125.2 125.3 127.5
135.8
137.8
153.8
108.0
145.0
130.9
138.3
143.0
156.9
116.8
145.7
132.7
139.8
149.7
157.6
135.0
146.7
131.4
140.9
148.0
157.8
129.6
147.8
134.0
141.3
147.2
154.1
134.3
148.9
134.7
142.9
147.8
156.0
132.8
155.4
134.7
141.1
146.3
153.3
143.0 142.9
150.2 150.3
159.5 159.4
127.4 127.3
115.1 115.2
130.7 130.5
121.1 121.5
127.1
115.4
130.3
120.9
127.2
114.5
130.6
121.0
128.0
114.2
131.7
120.9
128.1
116.0
131.4
119.6
129.1 130.2
116.5 117.0
132.5 133.6
121.3 121.9
62.21
48.95
28.53
20.42
13.26
37.79
113.8
111.9
123.6
95.5
121.1
117.4
122.2 123.4 123.7 124.1
May
Consumer goods
Durable consumer goods
Automotive products
Autos
Auto parts and allied g o o d s . . .
Home goods
Appliances, TV, and radios
Appliances and A/C
TV and home audio
Carpeting and furniture
Misc. home goods
,
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco..
20.67
4.32
16.34
8.37
Nonfood staples
Consumer chemical products,
Consumer paper products...,
Consumer fuel and lighting . .
Residential utilities
7.98
2.64
1.91
3.43
2.25
122.8 126.2
122.8 113.5
109.7 129.5
117.5 119.5
126.0
114.8
128.9
119.9
125.0
112.2
128.4
119.1
154.2 153.3
132.9 134.8
153.9
134.1
130.1 130.7
118.0
133.4 i 34.5
122.5 123.2
135.3
144.6
114.8
139.5
147.8
140.0
149.1
118.6
144.7
153.0
138.3 138.1 140.9
145.1 143.9 148.8
119.3 119.3 119.1
143.7 144.1 147.1
152.5 153.6 156.5
140.0
149.9
119.4
144.0
154.4
140.1
151.1
118.7
143.8
153.5
140.7
151.5
119.0
144.4
152.3
143.1
154.9
121.7
145.6
152.1
143.7 144.1
153.5 153.0
121.7 122.5
148.2 149.2
155.4 157.8
145.8
155.6
124.1
150.4
160.0
144.8
153.4
124.4
149.7
160.9
146.5
156.5
124.0
151.2
161.2
12.74 106.1
6.77 102.5
1.45 104.8
92.7
3.85
1.47 125.6
111.6
109.1
108.3
101.0
131.2
113.4
110.4
108.7
102.6
132.9
114.4
111.5
112.3
102.5
134.1
116.9
113.0
113.0
104.7
134.6
118.2 118.6
114.5 115.6
115.1 116.0
106.1 107.5
135.5 137.1
119.6
117.4
118.1
109.4
137.6
121.3
119.1
118.8
112.0
138.2
122.5 123.0
119.8 120.5
119.1 119.6
113.1 113.9
138.3 138.5
124.6
122.5
123.0
115.1
141.0
126.5
124.4
124.2
117.3
143.7
125.8
124.2
125.2
117.2
141.1
5.97 110.3 114.4 116.6
3.30 118.4 123.9 125.5
2.00 96.8 96.8 101.9
.67 110.5 120.3 116.3
117.6
126.5
101.7
120.0
121.4
128.8
110.0
118.3
122.4
129.9
111.8
117.6
121.9
130.6
110.2
114.6
122.2
131.3
107.5
120.9
123.7
131.6
109.8
126.5
125.4
134.1
109.7
129.3
125.8
135.9
109.0
126.4
127.0
137.0
108.4
132.8
128.8
140.2
109.6
129.4
127.7
138.4
109.4
129.4
80.1
81.8
79.8
81.0
80.6
82.0
80.1
81.5
80.0
81.0
79.7
80.1
80.1
80.0
81.1
81.1
79.7
79.0
79.8
79.1
80.0
79.2
5.93 120.8 125.6 130.0 128.7 129.6 130.3 130.7 132.2 132.2 135.9
7.34 121.3 123.9 125.9 126.9 127.4 128.9 128.3 127.0 129.2 128.9
134.5
132.7
135.3 134.9 135.0
129.6 128.1 127.1
Equipment
Business equipment
Industrial equipment
Building and mining equip
Manufacturing equipment
Power equipment
Commercial, transit, farm eq
Commercial equipment
Transit equipment
Farm equipment
Defense and space equipment
Military products
7.68
5.15
77.9
80.1
77.9
79.4
79.6
81.5
Intermediate products
Construction products
Misc. intermediate products
Materials
Durable goods materials
Consumer durable parts
Equipment parts
Durable materials nec
Nondurable goods materials
Textile, paper, and chem. m a t . . . .
Nondurable materials n.e.c
Fuel and power, industrial
Supplementary groups
Home goods and clothing
Containers
20.91 113.5
4.75 113.8
99.3
5.41
10.75 120.6
120.2
119.0
107.5
127.2
121.4 123.5
120.5 123.6
109.7 112.0
127.7 129.2
124.1
123.9
111.6
130.6
126.6
125.4
113.0
134.2
127.6
125.9
114.6
134.9
127.9
129.0
113.8
134.7
128.6
125.7
118.0
135.3
129.2
128.8
118.2
134.9
131.7
126.9
124.5
137.6
131.8
128.6
122.3
138.0
132.5
129.9
122.1
139.0
133.0
128.7
123.4
139.6
13.99 122.5
8.58 129.2
5.41 111.9
2.89 120.9
125.3
132.9
113.3
123.2
124.6 126.4
132.9 136.0
111.8 111.4
122.6 119.5
126.3
136.0
110.9
120.6
127.7
136.5
113.9
122.7
127.1
136.3
112.7
122.6
128.5
138.8
112.2
122.1
128.9
139.4
112.3
122.9
129.4 130.4
140.2 142.2
112.3 112.1
125.3 126.9
130.6
142.4
111.7
126.3
129.8
141.2
112.0
128.7
129.3
140.5
111.5
127.6
128.6 129.7 130.7 130.0 131.5
138.0 141.4 135.1 140.5 139.8
130.5
137.8
9.34 117.7 120.9 121.1
1.82 129.7 133.2 134.1
122.0 125.5
135.0 137.1
126.3 127.6 128.1
138.8 145.2 139.1
437.3
336.3
235.9
100.6
101.3
445.7
342.7
238.2
104.6
103.0
Gross value of products
in market structure
(In billions of 1963 dollars)
Products, total
Final products
Consumer g o o d s . . .
Equipment
Intermediate products.
F o r NOTE s e e p . A - 6 1 .
430.0 435.7
331.6 334.7
233.1 234.4
98.5 100.2
98.3 100.8
442.8
340.5
237.6
103.0
102.2
446.9
343.9
239.5
104.5
102.7
446.2
343.7
238.9
104.8
102.3
449.7
346.6
241.1
105.6
103.1
451.8
347.8
241.3
106.6
104.3
452.9
347.7
241.0
106.6
104.8
446.2
341.9
235.4
106.6
104.6
450.5
346.9
239.2
107.8
103.5
453.4
350.0
242.4
107.8
103.4
A 59
D E C E M B E R 1973 • I N D U S T R I A L P R O D U C T I O N : S.A.
INDUSTRY GROUPINGS
(1967 = 100)
Grouping
1967
proportion
1972
average
88.55
52.33
36.22
11.45
6.37
5.08
1973
1972
Aug. r Sept. r
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
114.0
108.4
122.1
124.1
108.8
143.4
118.5
113.8
125.2
126.6
110.2
147.1
119.5
115.3
125.6
126.7
109.7
148.2
120.4
116.3
126.2
126.1
108.2
148.5
121.4
117.5
127.0
127.3
108.5
151.0
122.7
118.7
1-28.4
128.0
110.2
150.5
123.4
119.9
128.6
127.3
109.5
149.6
123.8
120.6
128.4
126.6
109.0
148.7
124.9
121.8
129.3
127.0
109.1
149.5
125.6
123.0
129.3
128.2
109.5
151.5
126.5
123.8
130.5
130.4
111.0
154.8
126.1
122.6
130.9
130.7
111.5
154.8
126.4
123.4
130.7
131.4
112.0
155.8
126.4
123.9
130.1
131.4
112.1
155.6
12.55
6.61
4.23
5.94
113.9
113.1
107.1
114.8
121.3
122.1
118.4
120.4
122.6
122.9
119.2
122.2
124.0
125.4
120.0
122.3
124.3
123.1
118.6
125.7
125.4
124.7
120.0
126.2
125.8
123.5
117.5
128.4
127.3
125.8
119.7
128.9
128.1
126.1
119.8
130.3
128.7
124.5
119.9
133.4
130.6
128.1
120.9
133.5
129.5 129.8
125.6 128.4
118.5 122.0
133.8 131.5
131.5
130.2
122.9
132.7
32.44
Machinery and allied goods
17.39
Machinery
9.17
Nonelectrical machinery
8.22
Electrical machinery
9.29
Transportation equipment
4.56
Motor vehicles and parts
Aerospace and misc. trans, e q . . . 4.73
2.07
Instruments
3.69
103.5
107.5
105.7
109.6
99.0
123.1
75.8
120.2
86.0
108.2
114.0
113.5
114.7
102.7
128.7
77.6
125.0
85.2
110.1
115.7
115.3
116.1
105.0
132.3
78.7
125.1
87.3
111.2
116.8
114.4
119.6
106.6
135.9
78.3
126.6
87.8
112.5
118.4
116.3
120.8
107.6
139.3
77.1
130.1
87.0
113.7
119.1
117.3
121.2
110.0
141.5
79.7
131.9
87.6
115.1
121.4
119.0
123.9
110.3
141.0
80.8
133.8
87.1
115.7
122.6
121.5
123.8
110.0
140.1
81.1
134.7
86.4
117.3
124.7
124.0
125.4
111.0
140.9
82.2
138.9
85.4
118.8
126.9
126.1
127.8
112.2
143.3
82.2
140.2
86.7
119.3
127.6
127.1
128.0
112.1
144.1
81.3
140.8
86.7
117.7
128.5
128.9
128.2
105.7
131.0
81.3
140.9
83.8
118.9
130.0
130.0
130.0
107.3
133.9
81.7
141.5
83.7
118.9
129.0
128.6
129.5
109.2
136.1
83.2
140.9
83.5
Manufacturing
Durable
Nondurable
Mining and utilities
Utilities
Durable manufactures
Primary and fabricated metals
Primary metals
Iron and steel, subtotal
Fabricated metal products
Lumber, clay, and glass
Lumber and products
Clay, glass, and stone products....
4.44 120.0 124.9 124.5 123.7 126.4 127.3 129.1 129.9 130.3 129.2 129.8 129.2 128.8 130.4
1.65 122.4 127.3 126.8 122.7 125.8 128.5 129.5 129.1 127.5 126.6 125.4 128.4 128.9 131.1
2.79 118.6 123.5 123.1 124.3 126.8 126.6 128.9 130.4 132.0 130.5 132.3 129.6 128.8 130.0
Furniture and miscellaneous
Furniture and fixtures
Miscellaneous manufactures
2.90 122.7 126.9 126.6 127.7 130.3
1.38 113.5 117.6 118.5 120.3 119.1
1.52 131.1 135.4 134.0 134.5 140.5
132.8 133.4 133.1 136.0 135.4 135.9 137.5 138.2 136.0
122.3 122.8 123.8 126.5 126.5 127.5 129.5 130.4 128.7
142.4 143.0 141.6 144.5 143.6 143.5 144.9 145.3 142.8
Nondurable manufactures
Textile mill products
Apparel products.
Paper and printing
Paper and products
6.90 108.1 112.1 113.0 113.2 113.4 114.4 114.6 114.0
2.69 117.4 123.2 125.7 124.2 125.3 126.1 127.1 126.1
3.33 105.7 109.5 110.1 111.1 112.3 112.6 112.4 111.7
85.0 86.8
.88 88.9 88.0 85.9 87.4 81.3 85.1
7.92 116.1 119.9 120.0 120.3 120.0 121.5 122.4 120.8 122.0 122.8 123.8 124.5 122.1 120.6
3.18 128.2 131.1 131.3 133.6 131.8 134.1 137.1 133.6 135.1 134.6 135.3 137.0 134.8 133.1
4.74 107.9 112.4 112.6 111.3 112.1 113.0 112.4 112.2 113.2 114.8 116.0 116.2 113.6 112.1
Chemicals, petroleum, and
rubber.... 11.92
7.86
Chemicals and products
1.80
Petroleum products
2.26
Rubber and plastics products
Foods and tobacco
Foods
Tobacco products
113.3 115.0 114.5 115.4 117.2 116.2
127.2 129.2 128.9 129.0 129.4 129.3
110.0 111.0 112.1 113.6 115.4
83.0 86.6 79.2 81.0 86.4 83! i
137.8
139.6
120.6
145.5
141.6
143.9
123.8
148.4
142.0
143.2
124.4
151.5
143.8
144.7
125.5
154.7
145.5
146.4
127.3
157.1
146.3
147.2
124.1
160.4
146.3
146.8
123.5
163.4
147.9
147.8
126.9
165.1
150.2
150.2
128.5
166.8
149.8
150.4
129.7
163.9
151.8
152.0
129.3
168.8
151.0
151.4
128.2
167.9
150.7
152.7
126.0
163.6
151.2
153.1
129.2
162.1
9.48 117.6 118.5 119.0 118.5 119.6 122.0 121.5 120.7 121.5 119.5 121.3 122.0 122.6 121.6
8.81 118.6 119.0 119.4 119.7 120.5 122.9 121.8 121.3 122.4 120.3 122.4 122.9 123.5 122.6
.67 103.7 111.8 112.5 102.5 107.9 110.3 118.1 112.9 111.2 108.1 105.3 110.1 109.1
Mining
Metal, stone, and earth minerals
Stone and earth minerals
Coal, oil, and gas
Coal
1.26 107.3 110.4 112.6 113.7 116.4 117.6 117.0 116.8 116.2 111.8 116.9 120.6 120.3 120.9
.51 120.9 122.8 124.7 128.1 130.3 131.9 127.8 128.5 127.0 121.6 128.4 131.4 136.2 137.9
.75 98.1 102.0 104.4 104.0 106.9 107.8 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2
5.11 109.2 110.1 109.0 106.8 106.5 108.4 107.6 107.1 107.3 108.9 109.5 109.2 110.0 110.0
.69 104.2 100.8 102.6 98.6 99.1 103.9 105.7 99.9 100.9 108.0 109.0 104.0 110.0 104.9
4.42 110.0 111.5 110.0 108.2 107.7 109.1 107.9 108.3 108.4 109.1 109.5 110.0 110.0 110.8
Utilities
3.91 149.4 154.2 155.2 155.6 159.1
1.17 123.4
F o r NOTE s e e p . A - 6 1 .
158.3 157.4 156.2 156.8 159.7
164.0 163.8
165.1
164.6
INDUSTRIAL PRODUCTION: N.S.A. • D E C E M B E R 1973
A 60
MARKET GROUPINGS
(1967 = 100)
1967
proportion
Grouping
1972
Oct.
100.0 115.2 122.7
Total index
Products, total
Final products
Consumer goods
Equipment
Intermediate products
Materials
1972
average
,
62.21
48.95
28.53
20.42
13.26
37.9
113.8
111.9
123.6
95.5
121.1
117.4
121.9
119.7
133.2
100.8
130.1
124.0
1973
Dec.
Jan.
120.4
117.3
118.9 123.6 124.6 124.5 125.6 128.9 122.4 126.7
118.5 114.2 116.6
116.1 112.0 115.3
126.8 120.2 125.3
101.1 100.5 101.4
127.5 122.2 121.2
123.5 122.5 122.8
Feb.
Mar.
Aug. r
Nov.
Apr.
May
June
July
120.6
119.1
129.2
104.9
126.1
128.6
121.8
120.0
130.8
105.0
128.5
129.2
121.2
118.9
129.2
104.6
129.6
129.9
122.4
120.0
130.3
105.5
131.4
130.9
127.3
125.1
136.4
109.2
135.2
131.4
121.6
118.9
128.6
105.2
131.8
123.7
125.1
122.2
134.1
105.7
135.5
129.2
Sept. r
131.1
130.7
128.8
141.9
110.3
137.6
131.8
Consumer goods
Durable consumer goods
Automotive products
Autos
Auto parts and allied g o o d s . . . .
Home goods
Appliances, TV, and home audio
Appliances and A/C
TV and home audio
Carpeting and furniture
Misc. home goods
7.86 125.7 140.2
2.84 127.7 147.0
1.87 112.7 135.6
.97 156.5 168.9
134.8 125.1
141.9 123.9
132.9 109.8
159.0 150.9
133.3 140.6
138.5 149.1
134.8 144.6
145.7 157.7
143.5
151.5
143.9
166.0
141.3
147.6
135.8
170.2
142.7
147.4
138.2
165.0
147.5
154.4
148.5
165.8
129.2 126.9 146.4
124.3 100.5 136.6
108.5 69.1 121.9
154.5 160.8 164.9
5.02 124.5
1.41 124.6
.92 144.5
.49 87.5
1.08 132.6
2.53 121.0
136.3
142.7
164.9
101.2
139.7
131.3
130.8
129.1
143.5
102.2
140.8
127.6
125.8
122.0
134.6
98.4
140.0
121.9
130.3
139.7
153.7
113.6
141.0
120.4
135.8
142.6
157.0
115.7
150.2
125.9
138.9
149.0
166.2
116.9
149.1
129.0
137.7
148.2
165.6
115.4
146.1
128.2
140.1 143.6
148.5 146.8
166.1 162.7
115.7 117.1
146.3 151.1
132.7 138.6
132.0 141.8 152.0
130.1 135.0 162.6
150.5 134.1 168.4
91.9
134.4 156.5 159.1
132.1 139.3 143.0
122.
109.7
126.2
117.5
130.6
118.0
133.9
125.9
123.7 118.4
112.5 103.0
126.7 122.5
119.3 111.6
122.2
105.9
126.5
113.8
124.9
116.6
127.1
117.0
126.0
120.0
127.6
118.4
124.6
119.3
126.0
117.8
125.6 132.2 128.4
115.3 122.4 104.3
128.3 134.8 134.8
120.7 123.8 120.2
136.8
121.7
140.8
128.0
140.3
124.3
144.5
133.5
135.3 142.2
144.6 157.4
114.8 124.9
139.5 140.1
147.8 146.4
134.4
145.0
118.5
135.1
139.4
134.0
133.8
113.2
145.8
154.5
139.9
139.9
112.4
155.3
168.5
137.8
140.2
116.2
148.0
160.1
137.2
147.3
115.5
141.6
151.8
134.7
146.9
117.8
134.6
140.4
136.2
154.0
117.0
133.2
135.5
146.3 150.1
164.2 157.6
125.1 123.1
144.4 159.5
148.7 172.3
154.3
157.5
133.2
163.6
178.9
156.0
166.4
132.1
161.4
177.5
12.74 106.1 114.5
6.77 102.5 111.2
1.45 104.8 111.7
3.85 92.7 102.0
1.47
134.6
113.7
111.2
113.0
102.3
132.9
112.0
110.6
114.3
101.7
130.2
114.4
111.6
112.0
103.4
132.7
119.6
116.4
118.6
108.9
133.9
119.8
116.8
117.2
109.6
135.3
119.7
116.8
115:7
109.3
137.3
121.1
117.9
115.6
111.4
137.1
126.4
122.6
120.2
116.2
141.8
120.3 121.9
117.4 121.0
115.9 119.3
108.8 115.7
141.3 136.7
128.6
126.1
128.3
118.6
143.7
116.5 113.6 117.6 123.3
125.2 122.3 123.0 127.8
104.6 99.2 108.1 114.8
109.0 113.2 118.9 126.2
123.2
126.9
114.9
129.7
122.9
129.1
110.8
128.2
124.7
131.6
112.0
128.6
130.7
140.1
113.8
134.9
123.5 122.9 131.5
139.3 140.4 144.7
102.6 96.8 108.0
108.2 113.9 136.3
80.4
81.8
79.5
80.8
79.6
80.3
80.7
81.3
Nondurable consumer goods
Clothing
Consumer staples
Consumer foods and tobacco...
20.67
4.32
16.34
8.37
Nonfood staples
Consumer chemical products.
Consumer paper products....
Consumer fuel and lighting..
Residential utilities
7.98
2.64
1.91
3.43
2.25
Equipment
Business equipment
Industrial equipment
Building and mining equip
Manufacturing equipment
Power equipment
Commercial, transit, farm eq
Commercial equipment
Transit equipment
Farm equipment
Defense and space equipment
Military products
5.97 110.3
3.30 118.4
2.00 96.8
.67 110.5
7.68
5.15
80.1
118.3
126.0
104.0
123.2
78.0
79.1
80.2
81.7
81.5
82.4
79.8
81.2
80.5
81.9
80.0
80.5
78.8
78.4
79.9
79.0
Intermediate products
Construction products
5.93
131.0 128.3 121.9 120.5 128.0 131.9 135.0 136.4 140.7
7.34 121.3 129.3 126.9 122.5 121.7 124.5 125.7 125.2 127.4 130.7
131.6 136.0 139.8
131.9 135.0 135.9
Misc. intermediate products
Materials
Durable goods materials
Consumer durable parts
Equipment parts
Durable materials n.e.c
Nondurable goods materials
Textile, paper, and chem. mat
Nondurable materials n.e.c
Fuel and power, industrial
Supplementary groups
Home goods and clothing
Containers
F o r NOTE s e e p . A - 6 1 .
20.91
4.75
5.41
10.75
121.3
113.8 120.5
99.3 107.2
128.7
13.99
8.58
5.41
2.89
128.2
135.7
116.4
123.3
9.34
1.82
121.0 121.8
122.1 126.8
108.7 111.0
126.7 125.1
121.6
126.8
110.8
124.7
128.8 130.7
129.3 129.4
114.7 117.5
135.7 137.9
131.2
130.0
117.4
138.7
132.2 132.8 124.4
128.8 130.5 120.4
118.7 120.7 116.3
140.6 139.9 130.3
127.1
135.6
113.7
123.6
124.5
133.7
110.0
122.6
129.2
139.6
112.8
124.5
129.4
140.9
111.1
122.3
130.7
142.2
112.6
122.7
123.9
131.8
111.4
120.3
128.2
139.0
111.2
123.2
130.8
142.2
112.7
123.9
128.9
122.9
119.4
136.3
133.5
128.7
123.3
140.8
123.4 130.1
132.1 141.3
109.7 112.4
119.9 126.6
130.1
141.2
112.4
127.9
127.8 122.3 115.3 119.0 126.9 130.2 129.2 128.6 133.8 119.2 132.5 139.2
141.3 133.3 125.0 129.4 140.5 142.6 139.4 140.9 145.8 131.2 144.6 142.9
D E C E M B E R 1973 • I N D U S T R I A L P R O D U C T I O N : N.S.A.
A 61
INDUSTRY GROUPINGS
(1967=
1967
Grouping
Manufacturing, total
Durable
Nondurable
Mining and utilities
average
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.r
Sept. r
Oct.
123.2
121.0
124.7
125.8
128.9
123.2
129.5
125.8
133.3
121.1
117.9
130.4
122.4
128.0
127.5
124.6
122.5
127.7
125.0
122.7
123.6
155.7
109.2
150.6
107.6
146.8
108.5
140.5
88.55
114.0
122.2
120.0
116.3
117.6
52.33
36.22
108.4
122.1
116.4
130.6
115.3
126.7
113.3
120.6
114.9
121.5
11.45
124.1
108.8
126.5
123.8
125.2
111.3
145.5
110.6
140.5
109.2
145.4
128.6
107.0
120.3
117.1
6.37
5.08
Utilities
1973
1972
1972
proportion
100)
143.4
126.3
125.3
130.3
125.6
119.3
133.9
126.1
136.3
126.8
135.6
128.2
133.0
137.2
137.2
132.0
110.7
139.9
110.9
149.9
108.3
164.1
112.3
168.4
112.7
168.0
113.1
155.8
131.5
129.9
131.2
Durable manufactures
120.5
120.4
130.0
132.1
131.7
131.2
130.5
121.6
125.5
110.9
123.9
118.9
114.2
122.3
118.5
112.3
122.6
131.3
125.8
128.5
133.8
128.3
130.1
133.9
128.5
129.3
131.7
125.8
130.7
127.7
121.1
133.7
116.4
112.7
127.5
121.6
117.1
129.8
110.6
109.0
111.8
116.0
117.1
116.7
117.9
121.7
115.0
113.1
117.1
108.0
138.3
78.9
126.5
87.4
114.6
112.5
117.0
103.2
129.2
78.1
125.3
88.2
116.9
114.0
120.2
108.7
142.6
76.0
126.3
87.5
121.8
121.2
122.4
113.5
148.6
79.6
128.1
87.9
123.3
122.2
124.5
114.0
147.3
82.0
131.5
87.8
123.5
122.3
124.8
112.8
144.9
81.8
130.5
86.4
124.9
124.0
125.9
113.4
145.6
82.4
137.5
85.6
129.4
129.6
129.2
116.3
151.2
82.7
143.1
87.1
114.1
122.2
122.9
130.9
124.5
115.4
115.3
123.2
127.2
130.9
132.8
133.0
129.7
124.8
124.3
111.9
117.5
115.6
115.1
128.4
120.1
130.5
125.3
131.3
130.7
128.6
135.3
135.1
132.3
122.7
131.1
127.6
121.5
134.3
133.9
132.4
118.8
142.2
131.3
122.1
126.1
113.5
131.1
139.6
133.2
121.6
130.2
128.7
139.4
127.3
139.9
124.2
139.9
6.90
108.1
115.3
112.0
103.9
106.4
115.4
118.2
2.69
3.33
.88
117.4
105.7
88.9
125.7
113.0
92.1
125.1
108.2
86.5
117.0
98.7
83.3
117.8
103.9
80.6
126.1
113.7
88.7
129.6
116.3
89.9
116.1
128.2
113.9
121.1
113.1
107.1
114.8
119.4
113.4
123.0
32.44
103.5
17.39
9.17
8.22
9.29
4.56
4.73
2.07
3.69
107.5
105.7
109.6
99.0
123.1
75.8
120.2
86.0
111.3
117.1
114.3
120.3
107.2
137.5
78.0
128.9
84.6
Lumber, clay, and glass
Lumber and products
Clay, glass, and stone p r o d u c t s . . . .
4.44
120.0
1.65
2.79
122.4
118.6
Furniture and miscellaneous
Furniture and fixtures
Miscellaneous manufactures
2.90
1.38
1.52
Primary and fabricated metals
Primary metals
Iron and steel, subtotal
Fabricated metal products
12.55
Machinery and allied goods
Machinery
Nonelectrical machinery
Electrical machinery
Transportation equipment
Motor vehicles and parts
Aerospace and misc. trans, eq. . .
Instruments
Ordnance, private and Govt
6.61
4.23
5.94
121.4
104.0
129.0
79.8
140.8
86.0
124.9
133.3
127.3
117.7
135.6
113.0
121.2
122.5
125.8
126.3
125.2
94.0
108.5
80.1
143.9
82.8
133.1
132.2
134.2
108.3
135.2
82.4
147.4
83.4
132.6
129.5
136.0
114.0
145.5
83.6
145.3
82.9
128.9
123.3
132.3
134.9
134.5
136.7
136.8
132.8
136.2
134.4
134.6
137.0
136.5
132.5
137.2
127.6
138.9
125.7
147.6
114.5
139.5
128.7
148.2
142.9
131.7
140.4
123.0
141.2
116.9
113.8
120.4
128.7
115.6
85.8
129.1
110.0
81.3
135.0
117.4
87.1
102.0
112.1
122.8
138.5
153.1
130.0
149.9
119.5
Nondurable manufactures
Textiles, apparel, and leather
Textile mill products
Apparel products
Leather and products
Paper and printing
Paper and products
Printing and publishing
7.92
3.18
4.74
126.3
122.3
113.8
113.2
118.7
120.4
121.4
107.9
137.9
118.5
133.7
114.7
123.6
107.3
130.2
101.7
137.5
106.0
138.9
107.9
137.6
110.6
112.2
137.8
145.6
143.0
140.3
141.1
144.8
145.6
147.6
150.6
7.86
1.80
2.26
139.6
120.6
145.5
146.8
125.8
157.2
143.2
124.3
157.0
139.5
125.2
155.0
140.5
123.9
156.8
143.8
120.9
167.3
145.0
119.5
168.3
148.8
121.3
164.4
152.2
127.0
164.0
9.48
117.6
126.4
120.5
118.6
103.7
126.9
120.4
121.0
113.4
113.8
115.9
114.9
8.81
.67
117.4
117.7
Metal, stone, and earth minerals
Metal mining
Stone and earth minerals
1.26
107.3
114.4
110.8
108.7
120.9
98.1
123.2
108.5
115.0
107.9
115.0
104.4
Coal, oil, and gas
Coal
5.11
109.2
110.5
110.5
.69
4.42
104.2
110.0
107.8
110.9
104.9
111.4
3.91
1.17
149.4
123.4
152.0
145.3
11.92
Chemicals and products
Petroleum products
Rubber and plastics products
Foods
Tobacco products
120.0
121.4
102.6
68.7
133.6
118.1
85.5
132.4 131.9
121.7
8 6 . 7 ' 87 !O
125.7
121.8
128.4
127.1
127.0
138.4
117.2
127.6
117.9
136.7
122.8
133.0
123.1
140.0
118.2
153.8
155.5
147.1
151.3
154.6
155.3
150.3
132.8
147.4
152.6
133.2
161.2
156.7
130.4
166.5
156.2
130.9
171.7
132.0
129.6
133.2
115.9
130.6
132.8
164.6
118.1
117.1
120.0
123.1
113.5
118.1
118.3
117.8
108.0
120.7
110.1
123.7
115.6
119.2 .126.6
121.1 127.2
93.9 1 1 8 . 5
103.4
105.7
109.0
116.4
125.7
125.3
119.0
125.5
126.0
125.1
114.0
96.2
120.6
95.5
118.7
102.4
127.2
109.0
143.4
113.6
144.0
112.6
133.9
108.9
139.7
115.8
143.0
114.4
138.3
116.2
109.3
107.9
110.1
107.2
106.5
107.0
107.3
105.6
109.0
98.0
109.5
104.2
111.0
104.3
107.6
101.7
107.2
102.9
107.7
103.2
108.0
89.3
108.1
110.8
108.7
109.4
112.9
110.1
98.0
111.1
151.6
165.1
158.5
153.8
145.4
144.6
157.5
175.9
181.5
86.0
115.4
107.7
Mining
.51
.75
108.8
112.1
109.8
181.0
164.9
Utilities
NOTE.—Pages A-58 and A-59 include revisions stemming from changes
in seasonal adjustment factors, and pages A-60 and A-61 include revisions in some series that are not seasonally adjusted, beginning in
March 1972 in both instances. Data for the complete year of 1972 are
available in a pamphlet Industrial Production Indexes 1972 from Pub-
lications Services, Division of Administrative Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
Published groupings include series and subtotals not shown separately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.
A 62
B U S I N E S S ACTIVITY; CONSTRUCTION • D E C E M B E R 1973
S E L E C T E D BUSINESS
INDEXES
(1967= 100, except as noted)
Industrial production
Manufacturing
Industry
Market
Period
Products
Total
Final
Total
Total
Consumer Equipgoods ment
Inter- Matemediate rials
Manufacturing
Capacity
utilization
in mfg.
(1967
output
= 100)
Construction
contracts
Nonagricultural
employment—
Total 1
Employment
Prices 4
2
Payrolls
Total
retail
sales 3
Consumer
Wholesale
commodity
195 4
51.9
51.8
50.8
53.3
47.9
55.1
52.0
51.5
84.1
74.4
89.6
55.1
54
80.5
87.6
195 5
195 6
195 7
195 8
195 9
58.5
61.1
61.9
57.9
64.8
56.6
59.7
61.1
58.6
64.4
54.9
58.2
59.9
57.1
62.7
59.5
61.7
63.2
62.6
68.7
48.9
53.7
55.9
50.0
54.9
62.6
65.3
65.3
63.9
70.5
61.5
63.1
63.1
56.8
65.5
58.2
60.5
61.2
56.9
64.1
90.0
88.2
84.5
75.1
81.4
76.9
79.6
80.3
78.0
81.0
92.9
93.9
92.2
83.9
88.1
61.1
64.6
65.4
60.3
67.8
59
61
64
64
69
80.2
81.4
84.3
86.6
87.3
87.8
90.7
93.3
94.6
94.8
1960
196 1
1962
196 3
196 4
66.2
66.7
72.2
76.5
81.7
66.2
66.9
72.
76.2
81.2
64.8
65.3
70.8
74.9
79.6
71.3
72.8
77.7
82.0
86.8
56.4
55.6
61.9
65.6
70.1
71.0
72.4
76.9
81.1
87.3
66.4
66.4
72.4
77.0
82.6
65.4
65.6
71.4
75.8
81.2
80.1
77.6
81.4
83.0
85.5
86.1
89.4
82.4
82.1
84.4
86.1
88.6
88.0
84.5
87.3
87.8
89.3
68.8
68.0
73.3
76.0
80.1
70
70
75
79
83
88.7
89.6
90.6
91.7
92.9
94.9
94.5
94.8
94.5
94.7
89.2
97.9
88.1
96.8
91.0
99.8
105.7
110.7
106.7
106.8
115.2
105.8
109.7
86.8
96.1
100.0
105.8
109.0
104.5
104.7
111.9
89.0
91.9
87.9
87.7
86.5
78.3
75.0
'78.6
93.2
94.8
100.0
113.2
123.7
123.1
145.4
165.3
92.3
97.1
100.0
103.1
106.7
107.2
107.3
110.5
93.9
99.9
100.0
101.4
103.2
98.0
93 9
96.7
88.1
97.8
100.0
108.3
116.6
114.1
116.3
130.2
91
97
100
109
114
120
122
142
94.5
97.2
100.0
104.2
109.8
116.3
121.2
125.3
96.6
99.8
100.0
102.5
106.5
110.4
113.9
119.8
111.7
112.1
112.4
98.4
99.1
99.6
136.1
139.0
139.3
149
148
151
126.6
126.9
127.3
120.0
120.7
122.9
181.0 112.7
99.9
82.8 191.0 113.5 100.7
193.0 113.8 101.0
177.0 114.0 101.5
'83.3 173.0 114.4 101.7
183.0 114.7 1 0 2 . 1
175.0 114.6 101.8
. 83.3 206.0 115.0 102.1
102.1
182.0 1 1 5 . 3
191.0 115.8 1 0 2 . 9
116.1 103.0
139.8
142.9
142.6
144.8
144.9
145.3
146.3
146.7
149.8
151.8
154.4
156
158
160
157
160
157
164
162
162
165
165
127.7
128.6
129.8
130.7
131.5
132.4
132.7
135.1
135.5
136.6
124.5
126.9
129.7
130.7
133.4
136.7
134.9
142.7
140.2
139.5
141.8
93.0 78.7 93.0
98.6 93.0 99.2
100.0 100.0 100.0
106.6 104.7 105.7
111
106.1 112.0
110.3 96.3 111.7
115.7 89.4 112.6
123.6 95.5 121.1
105.7
112.4
107.7
107.4
117.4
89.1
98.3
100.0
105.7
110.5
105.2
105.2
114.0
1972—Oc t
Nov
Dec
119.2 117.3 115.3 127.0 98.9 124.7
120.2 118.6 116.3 127.4 100.7 127.6
121.
116.8 127.7 101.5 127.7
119.
122.3
122.8
124.4
118.5 11
171.0
119.5
81.5 177.0
120.4 JI
163.0
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct p
Nov. ....
122.2 120.7 118.6 129.8 102.9 128.4
124.5 121.4
126.7 122.7
127.0 123.4
127.7 123.8
128.3 124.9
129.0 125.6
130.9 126.5
130.9 1 2 6 . 1
131.3 1 2 6 . 4
131.2 1 2 6 . 4
130.7 126.9
196 5
196 6
1967
196 8
1969
1970
197 1
197 2
100.0 100.0
123.4
123.7
124.
124.
125.6
126.7
126.5
r
126.8
r
127.0
127.2
106.0
106.4
113.8
121.5
121.7
122.0
122.9
123.7
124.2
'123.7
r
124.3
r
124.5
125.0
119.3
119.6
120.0
120.8
121.3
122.1
r
121.4
r
122.6
r
122.8
123.
130.2
130.8
130.9
131.8
131.9
132.8
131.2
'132.4
r
132.9
133.2
104.1
104.1
104.7
105.7
106.6
107.3
r
107.6
109.0
r
108.6
109.0
129.5
129.4
129.3
130.5
132.0
132.5
132.1
131.0
130.9
132.0
100.0
1
Employees only: excludes personnel in the Armed Forces.
2 Production workers only.
3
F.R.
index based on Census Bureau figures.
4
Prices are not seasonally adjusted. Latest figure is final.
NOTE.—All series: Data are seasonally adjusted unless otherwise noted.
Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept. of Commerce.
Construction contracts; McGraw-Hill Informations Systems Company
F.W. Dodge Division, monthly index of dollar value of total construction
contracts, including residential, nonresidential, and heavy engineering;
does not include data for Alaska and Hawaii.
Employment and payrolls: Based on Bureau of Labor, Statistics data;
includes data for Alaska and Hawaii beginning with 1959.
Prices: Bureau of Labor Statistics data.
C O N S T R U C T I O N C O N T R A C T S A N D PRIVATE H O U S I N G PERMITS
(In millions of dollars, except as noted)
Type of ownership and
type of construction
Total construction i
1971
1972
1972
Sept. r
Oct.
Nov.
1973
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
80,188 91,183 8,047 8,225 7,248 6,464 6,795 6,839 8,644 8,814 9,428 9,910 9,228 10,303 8,151
By type of ownership:
Public 1
Private
23,927 24,084 2,041 1,668 1,785 1,650 1,918 1,717 2,046 2,071 2,359 2,995 2,581 2,968 2,328
56,261 67,098 6,006 6,557 5,462 4,814 4,877 5,122 6,599 6,743 7,069 6,916 6,647 7,335 5,822
By type of construction:
Residential building 1
Nonresidential building
Nonbuilding
34,754 45,123 4,027 4,298 3,663 3,120 3,195 3,277 4,643 4,512 4,754 4,612 4,224 4,233 3,638
25,574 27,082 2,338 2,384 2,184 2,215 2,420 2,229 2,707 2,634 2,629 2,976 2,991 3,241 2,719
19,282 18,982 1,682 1,544 1,402 1,132 1,180 1,333 1,294 1,668 2,045 2,322 2,013 2,828 1,794
Private housing units authorized...
(In thousands, S.A., A.R.)
1,925
2,399 2,366 2,318 2,226 2,399 2,233 2,209 2,129
i Because of improved procedures for collecting data for 1 -family homes,
some totals are not strictly comparable with those prior to 1968. To improve comparability, earlier levels may be raised by approximately 3 per
cent for total and private construction, in each case, and by 8 per cent for
residential building.
NOTE.—Dollar value of construction constracts as reported by the
1,939
1,838 2,030 1,780 1,750 1,591
McGraw-Hill Informations Systems Company, F.W. Dodge Division.
Totals of monthly data exceed annual totals because adjustments—
negative—are made in accumulated monthly data after original figures
have been published.
Private housing units authorized are Census Bureau series for 14,000
reporting areas with local building permit systems; 1971 data are for
13,000 reporting areas.
D E C E M B E R 1973 • C O N S T R U C T I O N
A 63
V A L U E OF N E W C O N S T R U C T I O N A C T I V I T Y
(In millions of dollars)
Private
Public
Nonresidential
Period
Total
Buildings
Residential
Total
Total
Industrial
Commercial
Other
buildings 1
Other
Total
Military
Highway
Conservation
&
Other
development
2
1962 3
1963 4 . . . .
1964
59,965
64,563
67,413
42,096
45,206
47,030
25,150
27,874
28,010
16,946
17,332
19,020
2,842
2,906
3,565
5,144
4,995
5,396
3,631
3,745
3,994
5,329
5,686
6,065
17,869
19,357
20,383
1,266
1,179
910
6,365
7,084
7,133
1,523
1,694
1,750
8,715
9,400
10,590
1965
1966
1967
1968
1969
73,412
76,002
77,503
86,626
93,368
51,350
51,995
51,967
59,021
65,404
27,934
25,715
25,568
30,565
33,200
23,416
26,280
26,399
28,456
32,204
5,118
6,679
6,131
6,021
6,783
6,739
6,879
6,982
7,761
9,401
4,735
5,037
4,993
4.382
4,971
6,824
7,685
8,293
10,292
11,049
22,062
24,007
25,536
27,605
27,964
830
727
695
808
879
7,550
8,405
8,591
9,321
9,250
2,019
2,194
2,124
1,973
1,783
11,663
12,681
14,126
15,503
4,822
197 0
197 1
197 2
94,167
109,238
123,836
66,071
79,367
93,640
31,864
43,268
54,186
34,207
36.099
39,454
6,538
5,423
4,676
9,754
11,619
13,462
5,125
5,437
5,898
12,790
13,620
13,418
28,096
29,871
30,196
718
901
1,080
9,981
10,658
10,448
1,908
2,095
2,172
4,832
4,820
4,996
1972—Oct..
Nov.
Dec..
128,513
126,831
131,550
96,201
97,506
98,450
56,361
57,167
57,545
39,840
40,339
40,905
4,345
4,617
4,765
13,720
13,607
13,865
6,197
6,235
6,220
15,578
15,880
16,055
32,312
29,325
33,100
1,076
1,200
10,642
10,585
11,045
2,205
2,042
2,065
18,389
15,498
18,802
1973—Jan..
Feb..
Mar.
Apr.,
May
June,
July.
Aug.
Sept.
Oct..
135,503
136,148
137,960
135,511
136,453
135,878
138,434
138,164
137,234
134,654
101,801
103,860
104,331
102,951
104,104
104,906
106,939
107,112
104,341
102,720
59,112
61,219
61,240
59,851
59,849
60,116
60,238
60,087
58,917
56,099
42,689
42,641
43,091
43.100
44,255
44,790
46,701
47,025
45,424
46,621
5,292
5,180
5,479
5,287
5,338
5,928
6,340
6,687
6,324
6,516
15,001
14,873
15,071
15,473
16,118
15,704
16,110
15,800
15,111
15,554
6,002
6,145
6,179
6,282
6,251
6.383
6,492
6,122
5,742
6,189
16,394
16,443
16,362
16,057
16,547
16,775
r
17,759
18,416
18,247
18,362
33,702
32,288
33,629
32,560
32,349
30,972
31,495
31,052
32,893
31,934
1,221
1,422
1,303
1,158
1,277
1,162
1,341
1,048
972
1,053
1 Includes religious, educational, hospital, institutional, and other buildings.
2
Sewer and water, formerly shown separately, now included in "Other."
3 Beginning'July 1962, reflects inclusion of new series affecting most
private nonresidential groups.
1,188
1,999
1,712
2,490
1,675
2,291
1,870
1,658
1,833
1,859
1,956
4
Beginning 1963, reflects inclusion of new series under "Public" (for
State and local govt, activity only).
NOTE.—Census Bureau data; monthly series at seasonally adjusted
annual rates.
NEW HOUSING UNITS
(In thousands)
Units started
Private (S.A., A.R.)
Governmentunderwritten
(N.S.A.)
Private and public
(N.S.A.)
Period
Mobile
home
shipments
(N.S.A.)
Type of structure
Region
Total
North- North South
Central
east
West
family
2- to 4family
196 3
1964
1,603
1,529
261
254
328
340
591
578
430
357
1,012
970
108
196 5
196 6
1967
196 8
196 9
1,473
1,165
1,292
1,508
1,467
270
206
215
227
206
362
288
337
369
349
575
472
520
618
588
266
198
220
294
324
964
778
844
900
814
197 0
197 1
1972
1,434
2,052
2,357
218
264
330
294
434
443
612
869
1,057
310
486
527
1972—Oct..
Nov..
Dec..
2,446
2,395
2,369
372
353
486
469
400
330
1,125
1,106
1,080
1973—Jan..
Feb..
Mar.,
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
2,497
2,456
2,260
2,123
2,413
2,128
2,191
2,094
1,761
1,613
348
366
297
292
267
370
225
287
279
251
599
571
415
387
595
474
487
481
400
380
1,086
1,087
1,142
890
999
837
1,063
841
723
654
5 89
Total
Private Public
Total
FHA
VA
450
1,635
1,561
1,603
1,529
32
32
292
264
221
205
71
59
151
191
87
61
72
81
85
422
325
376
527
571
1,510
1 196
1,322
1,546
1,500
1,473
1,165
1,292
1,508
1,467
37
31
30
38
33
246
195
232
283
284
197
158
180
227
233
49
37
53
56
51
216
217
240
318
413
813
1,151
1,309
85
120
141
536
781
906
1,469
2,084
2,379
1,434
2,052
2,357
35
32
22
482
621
475
421
528
371
61
93
104
401
497
576
480
536
473
1,315
1,324
1,207
153
134
128
978
937
1,034
218
187
153
217
186
151
2
1
2
34
29
48
25
21
42
9
8
6
54
50
38
464
434
406
554
552
447
416
485
359
328
1,450
1,372
1,245
1,202
1,271
1,124
1,247
1,125
977
945
163
123
123
131
162
129
151
111
96
68
884
961
892
790
980
875
793
858
688
600
147
140
201
205
234
203
203
200
146
147
147
138
200
205
234
203
203
197
145
144
j
2
1
19
21
27
27
29
27
20
23
15
12
14
19
18
18
17
12
14
10
7
7
8
9
11
8
8
9
6
6
41
43
57
62
57
57
r
50
54
45
NOTE.—Starts are Census Bureau series (including farm starts) except
for Govt.-underwritten, which are from Federal Housing Admin, and
Veterans Admin, and represent units started, including rehabilitation
5- or
morefamily
1
1
3
1
2
units under FHA, based on field office reports of first compliance inspections. Data may not add to totals because of rounding.
Mobile home shipments are as reported by Mobile Homes Manufacturers Assn.
A 64
EMPLOYMENT • DECEMBER 1973
LABOR FORCE, EMPLOYMENT, A N D U N E M P L O Y M E N T
(In thousands of persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)
Not in
labor force
(N.S.A.)
Total
labor
force
(S.A.)
Employed1
Total
Total
In nonagricultural
industries
In
agriculture
Unemployed
133,319
135,562
137,841
140,182
142,596
145,775
52,527
53,291
53,602
54,280
55,666
56,785
80,793
82,272
84,240
85,903
86,929
88,991
77,347
78,737
80,734
82,715
84,113
86,542
74,372
75,920
77,902
78,627
79,120
81,702
70,527
72,103
74,296
75,165
75,732
78,230
3,844
3,817
3,606
3,462
3,387
3,472
2,975
2,817
2,832
4,088
4,993
4,840
146,709
146,923
57,309
57,486
89,454
89,707
87,023
87.267
82,525
82,780
78,969
79,130
3,556
3,650
4,498
4,487
147,129
147,313
147,541
147,729
147,940
148,147
148,361
148,565
148,782
149,001
149,208
59,008
58,238
57,856
57,906
58,050
55,417
55,133
56,129
57,484
56,955
57,040
89,325
89,961
90,629
90,700
90,739
91,247
91,121
90,958
91,694
92,053
92,235
86,921
87,569
88.268
88,350
88,405
88,932
88,810
88,651
89,403
89,764
89,952
82,555
83,127
83,889
83,917
84,024
84,674
84,614
84,434
85,127
85,695
85,688
79,054
79,703
80,409
80,606
80,749
81,271
81,098
80,991
81,757
82,224
82,052
3,501
3,424
3,480
3,311
3,275
3,403
3,516
3,443
3,370
3,471
3,636
4,366
4,442
4,379
4,433
4,381
4,258
4,196
4,217
4,276
4,069
4,264
1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent of civilian labor force.
NOTE.—Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. Monthly data relate
to the calendar week that contains the 12th day; annual data are averages
of monthly figures. Description of changes in series beginning 1967 is
available from Bureau of Labor Statistics.
E M P L O Y M E N T IN N O N A G R I C U L T U R A L ESTABLISHMENTS, BY I N D U S T R Y DIVISION
(In thousands of persons)
Contract
construction
Total
Manufacturing
65,857
67,915
70,284
70,593
70,645
72,764
19,447
19,781
20,167
19,349
18,529
18,933
613
606
619
623
602
607
3,208
3,285
3,435
3,381
3,411
3,521
1972—No v
Dec
73,835
74,002
19,312
19,402
608
607
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept2
Oct. '
Nov.?
74,252
74,715
74,914
75,105
75,321
75,526
75,493
75,747
75,961
76,275
76,476
19,463
19,586
19,643
19,727
19,782
19,856
19,804
19,861
19,882
20,007
20,053
1972—No v
Dec
74,449
74,778
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.f
Nov.**
73,343
73,724
74,255
74,861
75,404
76,308
75,384
75,686
76,238
76,827
77,114
Period
196 7
196 8
196 9
197 0
197 1
197 2
Mining
Transportation & public utilities
Trade
Finance
Service
4,261
4,310
4,429
4,493
4,442
4,495
13,606
14,084
14,639
14,914
15,142
15,683
3,225
3,382
3,564
3,688
3,796
3,927
10,099
10,623
11,229
11,612
11,669
12,309
3,524
3,459
4,549
4,558
15,911
15,946
3,981
3,991
12,497
12,537
610
612
610
608
608
629
631
634
633
639
640
3,498
3,594
3,604
3,571
3,620
3,654
3,680
3,676
3,700
3,689
3,708
4,574
4,580
4,580
4,591
4,593
4.597
4.598
4,617
4,629
4,670
4,647
16,013
16,114
16,163
16,217
16,256
16,262
16,294
16,352
16,388
16,472
16,540
3,995
4,014
4,024
4,031
4,044
4,049
4,048
4,064
4,078
4.089
4.090
12,621
12,682
12,716
12,746
12,776
12,820
12,828
12,906
12,995
13,035
13,087
19,414
19,423
607
603
3,630
3,373
4,554
4.558
16,162
16,669
3,965
3,971
12,472
12,474
19,279
19,420
19,521
19,586
19,667
20,002
19,729
20,018
20,132
20,160
20,160
598
598
598
603
608
642
644
648
641
640
639
3,155
3,184
3,294
3,442
3,616
3,837
3,934
3,981
3,944
3,918
3,819
4,510
4,507
4,539
4.559
4,593
4,661
4,653
4,659
4,671
4,679
4,652
15,865
15,776
15,880
16,088
16,200
16,335
16,262
16,279
16,367
16,522
16,800
3,959
3,978
4,000
4,019
4,040
4,089
4,113
4,121
4,082
4,077
4,074
12,406
12,530
12,627
12,771
12,865
12,999
12,982
13,009
12,982
13,048
13,061
SEASONALLY ADJUSTED
NOT SEASONALLY ADJUSTED
NOTE.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed
persons, domestic servants, unpaid family workers, and members of
Armed Forces are excluded.
Beginning with 1970, series has been adjusted to Mar. 1971 benchmark.
D E C E M B E R 1973 • E M P L O Y M E N T A N D E A R N I N G S
P R O D U C T I O N W O R K E R E M P L O Y M E N T IN M A N U F A C T U R I N G
A 65
INDUSTRIES
(In thousands of persons)
Not seasonally adjusted 1
Seasonally adjusted *
Industry group
1972
1973
Nov.
Sept.
Oct.P
Nov.f
Nov.
Sept.
Oct.f
NOV.P
14,175
14,609
14,717
14,735
14,281
14,841
14,864
14,842
8,200
102
535
419
539
1,025
8,599
96
544
434
554
1,082
8,679
96
544
434
561
1,006
8,678
93
545
434
565
1,099
8,248
103
535
425
542
1,010
8,681
98
555
437
568
1,072
8,729
96
551
440
569
1,075
8,728
94
545
441
569
1,083
Fabricated metal products
Machinery
Electrical equipment and supplies
Transportation equipment
Instruments and related products
Miscellaneous manufacturing industries
1,075
1,298
1,288
1,294
287
338
1,123
1,398
1,386
1,332
311
339
1,132
1,413
1,415
1,332
314
342
1,131
1,431
1,418
1,306
317
339
1,087
1,289
1,304
1,311
289
353
1,135
1,396
1,404
1,350
312
355
1,143
1,405
1,426
1,348
315
362
1,143
1,421
1,436
1,323
318
354
Food and kindred products
Tobacco manufactures
Textile-mill products
Apparel and related products
Paper and allied products
5,975
1,171
57
887
1,176
546
6,010
1,157
57
899
1,160
558
6,038
1,169
59
902
1,160
563
6,057
1,188
63
904
1,150
564
6,033
1,195
62
891
1,189
550
6,160
1,274
69
901
1,171
561
6,135
1,236
69
902
1,174
563
6,114
1,212
68
909
1,163
568
659
589
119
513
258
661
606
120
538
254
661
609
120
542
253
664
607
122
540
255
663
587
118
518
260
660
606
122
543
253
664
607
121
546
252
668
605
126
545
256
Durable goods
Ordnance and accessories
Lumber and wood products
Furniture and fixtures
Stone, clay, and glass products
Primary metal industries
Printing, publishing, and allied industries
Chemicals and allied products
Petroleum refining and related industries
Rubber and misc. plastic products
Leather and leather products
1
1972
1973
Data adjusted to 1971 benchmark.
NOTE.—Bureau of Labor Statistics; data cover production and related
workers only (full- and part-time) who worked during, or received pay for,
the pay period that includes the 12th of the month.
H O U R S A N D E A R N I N G S O F P R O D U C T I O N W O R K E R S IN M A N U F A C T U R I N G I N D U S T R I E S
Average hours worked 1
(per week; S.A.)
Industry group
1972
1972
1973
Oct.P
Average weekly earnings 1
(dollars per week; N.S.A.)
1972
1973
Nov.
Sept.
Total
40.8
40.8
40.6
40.6
168.50 169.32
3.89
4.13
Durable goods
Ordnance and accessories
Lumber and wood products
Furniture and fixtures
Stone, clay, and glass products
Primary metal industries
41.7
42.3
41.0
40.3
41.8
42.7
41.4
42.5
40.7
39.7
42.2
42.7
41.3
42.4
40.3
39.5
41.9
42.6
4 1 . 3 173.05 183.06 181.75 182.16
4 2 . 7 175.11 185.73 185.27 190.03
40.3 139.06 150.51 148.96 146.73
39.6 127.39 133.87 133.60 134.00
4 2 . 2 167.60 181.48 180.62 181.04
4 2 . 5 203.04 220.85 216.82 218.50
4.14
4.13
3.40
3.13
4.00
4.80
4.39
4.37
3.68
3.33
4.26
5.16
41.6
42.6
40.8
42.2
40.5
39.3
41.5
43.0
40.4
41.1
40.9
39.1
41.5
42.8
40.0
41.6
40.8
38.6
41.7
42.8
39.9
40.9
40.9
38.9
169.72 179.74 179.71 181.41
187.03 198.23 197.27 199.06
153.71 158.75 157.18 157.58
206.98 212.16 215.27 211.77
152.97 161.52 160.74 162.31
125.06 129.42 128.43 131.26
4.07
4.38
3.74
4.87
3.74
3.15
4.30
4.61
3.91
5.10
3.93
3.31
39.8
40.3
38.0
41.3
36.1
43.1
39.8
40.6
37.9
40.9
35.9
42.8
39.7
40.7
40.0
40.5
35.8
42.6
39.7
40.8
42.0
40.6
35.6
42.8
141.20 150.00 149.27 150.42
147.86 159.01 158.32 159.51
133.32 143.52 155.63 162.89
115.93 123.82 123.02 125.05
97.55 101.96 101.67 102.32
174.50 183.61 182.33 184.04
3.53
3.66
3.49
2.78
2.68
4.03
3.75
3.85
3.68
3.02
2.84
4.26
38.2
41.9
42.4
41.6
37.8
38.0
42.0
42.5
41.0
38.4
37.8
41.9
42.1
40.9
38.0
38.0 174.65 182.31 179.17 180.59
41.8 180.18 190.26 189.81 190.23
4 2 . 2 213.35 227.47 223.55 222.08
4 1 . 2 153.46 159.42 158.67 160.24
3 8 . 0 103.09 107.35 107.54 109.73
4.56
4.29
5.02
3.68
2.72
4.76
4.53
5.29
3.86
2.84
Fabricated metal products
Machinery
Electrical equipment and supplies
Transportation equipment
Instruments and related products
Miscellaneous manufacturing industries..
Nondurable goods
Food and kindred products
Tobacco manufactures
Textile-mill products
Apparel and related products
Paper and allied products
Printing, publishing, and allied industries
Chemicals and allied products
Petroleum refining and related industries
Rubber and misc. plastic products
Leather and leather products
i Data adjusted to 1971 benchmark.
NOV.P
Nov.
Sept.
Average hourly earnings i
(dollars per hour; N.S.A.)
159.49 169.33
Oct.®
Nov.*
Nov.
Sept.
NOTE.—Bureau of Labor Statistics; data are for production and related
workers only.
A 66
PRICES • DECEMBER 1973
CONSUMER PRICES
(1967 = 100)
Housing
Period
All
items
Food
Total
Homeownership
Rent
1929
1933
1941
1945
1960
196 5
51.3
38.8
44.1
53.9
88.7
94.5
48.3
30.6
38.4
50.7
88.0
94.4
53.7
59.1
90.2
94.9
76.0
54.1
57.2
58.8
91.7
96.9
196 6
196 7
196 8
196 9
97.2
100.0
104.2
109.8
99.1
100.0
103.6
108.9
97.2
100.0
104.2
110.8
98.2
100.0
102.4
105.7
197 0
197 1
197 2
116.3
121.3
125.3
114.9
118.4
123.5
1972—Oc t
Nov
Dec
126.6
126.9
127.3
1973—Ja n
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
127.7
128.6
129.8
130.7
131.5
132.4
132.7
135.1
135.5
136.6
Health and recreation
Fuel
oil
and
coal
Gas
and
electricity
Fur- Apparel Transnishand
portaings
upkeep
tion
and
operation
Total
Medical
care
Personal
care
Reading
and
recreation
Other
goods
and
services
86.3
92.7
40.5
48.0
89.2
94.6
81.4
79.6
98.6
99.4
93.8
95.3
48.5
36.9
44.8
61.5
89.6
93.7
96.3
100.0
105.7
116.0
97.0
100.0
103.1
105.6
99.6
100.0
100.9
102.8
97.0
100.0
104.4
109.0
96.1
100.0
105.4
111.5
97.2
100.0
103.2
107.2
96.1
100.0
105.0
110.3
93.4
100.0
106.1
113.4
97.1
100.0
104.2
109.3
97.5
100.0
104.7
108.7
97.2
100.0
104.6
109.1
118.9
124.3
129.2
110.1 128.5
115.2 133.7
119.2 140.1
110.1
117.5
118.5
107.3
114.7
120.5
113.4
118.1
121.0
116.1
119.8
122.3
112.7
118.6
119.9
116.2
122.2
126.1
120.6
128.4
132.5
113.2
116.8
119.8
113.4
119.3
122.8
116.0
120.9
125.5
124.9
125.4
126.0
130.4
130.8
131.2
120.3
120.5
121.0
141.8
142.0
142.6
118.1
119.3
119.4
120.9
122.2
122.5
121.8
122.1
122.3
124.3
125.0
125.0
121.2
121.4
121.3
127.2
127.4
127.5
133.9
134.1
134.4
120.8
121.0
121.5
124.0
124.1
124.0
126.4
126.4
126.5
128.6
131.1
134.5
136.5
137.9
139.8
140.9
149.4
148.3
148.4
131.4
132.0
132.3
132.8
133.3
133.9
134.2
135.2
136.6
138.1
121.5 142.6
122.1 142.9
122.6 143.2
123.0 143.6
123.5 144.2
123.9 145.0
124.3 145.2
125.0 147.0
125.4 149.2
125.9 151.5
120.7
127.2
127.8
128.3
129.3
131.6
131.7
132.8
133.6
141.1
124.1
124.5
125.0
125.5
125.7
125.4
125.5
125.8
126.5
127.4
122.2
122.6
123.0
123.6
123.9
124.7
125.0
125.3
126.1
126.7
123.0
123.6
124.8
125.8
126.7
126.8
125.8
126.5
128.3
129.6
121.0
121.1
121.5
122.6
123.5
124.6
124.8
124.5
123.9
125.0
127.8
128.1
128.6
129.2
129.6
130.0
130.3
130.5
131.1
132.1
134.9
135.3
135.8
136.2
136.6
137.0
137.3
137.6
138.3
140.6
121.8
122.4
123.1
123.8
124.4
124.9
125.3
125.7
126.3
127.3
124.1
124.3
124.5
125.2
125.6
125.9
126.2
126.1
126.8
127.2
126.7
127.1
127.6
128.2
128.5
129.0
129.5
129.4
129.9
130.3
44.2
47.8
89.6
95.9
85.1
93.4
37.0
42.1
79.1
89.5
41.2
55.1
90.1
95.2
47.7
62.4
87.3
95.9
49.2
56.9
87.8
94.2
NOTE.—Bureau of Labor Statistics index for city wage-earners and
clerical workers.
W H O L E S A L E PRICES: SUMMARY
(1967 = 100, except as noted)
Industrial commodities
Period
ProAll
cessed
com- Farm foods
modi- prodand
ucts
ties
feeds Total
Textiles,
etc.
RubHides, Fuel, Chemicals,
ber,
etc.
etc.
etc.
etc.
95.3
94.8
94.8
94.7
95.2
99.5
97.7
98.6
98.5
99.2
90.8
91.7
92.7
90.0
90.3
96.1
97.2
96.7
96.3
93.7
Lum- Paper, Metber,
als,
etc.
etc.
etc.
MaTranschin- Furni- Nonme- porta- Misery
tallic
tion cellature,
and
min- equip-1 neous
equip- etc.
erals
ment
ment
95.3
91.0
91.6
93.5
95.4
92.0
91.9
92.0
92.2
92.8
97.2
97.6
97.6
97.1
97.3
93.0
93.3
93.7
94.5
95.2
9 9 . 0 9 5 . 9 9 5 . 9 9 6 . 2 9 6 . 4 93.9 96.9 97.5
9 9 . 4 9 7 . 8 100.2 98.8 9 8 . 8 96.8 9 8 . 0 9 8 . 4
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
9 9 . 8 103.4 113.3 101.1 102.6 103.2 102.8 103.7
99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7
95.9
97.7
100.0
102.2
100.8 105.2
101.8
100.7
99.1
97.9
98.3
I960
1961
1962
1963
1964
94.9
94.5
94.8
94.5
94.7
97.2
96.3
98.0
96.0
94.6
1965
1966
1967
IQfiR
1969.
96.6
99.8
100.0
102.5
106.5
98.7
105.9
100.0
102.5
109.1
1970.
1971.
1972.
110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4
113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5
119.1 125.0 120.8 117.9 113.6 131.3 118.6 104.2 109.3 144.3 113.4 123.5 117.9
1972—Nov
Dec
120.7
122.9
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
124.5 144.2
126.9 150.9
129.7 160.9
130.7 160.6
133.5 170.4
136.7 182.3
134.9 173.3
142.7 213.3
140.2 200.4
139.5 188.4
141.8 184.0
i Dec. 1968=100.
89.5
91.0
91.9
92.5
92.3
9 6 . 4 99.8
95.5
101.2 98.5 100.1
100.0 100.0 100.0
102.2 102.5 103.7
107.3 106.0 106.0
128.8 123.1 119.1
137.5 129.4 119.4
9 4 . 3 95.5
103.4 97.8
100.0 100.0
103.2 98.9
108.9 100.9
115.1 144.0 121.3
115.6 142.2 121.9
132.4 120.0 116.6
137.0 121.3 117.4
141.4 122.7 119.0
139.8 124.4 120.8
145.0 125.8 122.3
151.8 126.9 123.7
146.5 126.9 124.2
166.2 127.4 125.2
156.3 128.1 126.8
153.1 129.6 128.5
151.9 133.5 130.0
143.9
144.9
143.5
145.0
142.2
140.9
141.4
143.0
143.8
143.8
143.0
122.2
126.0
126.7
131.8
135.5
142.8
142.8
142.9
144.8
150.5
179.2
104.7
104.8
103.1
99.2
96.3
96.8
95.5
109.8 149.4
109.8 149.8
98.1
95.2
96.3
95.6
95.4
115.0
115.1
92.4
91.9
91.2
91.3
93.8
124.1 118.5
124.4 118.6
99.0
98.4
97.7
97.0
97.4
107.5
109.9
111.4
113.3
122.4
126.1
104.5 109.9
110.3 112.8
113.8 114.6
112.3 127.3
112.4 127.4
113.0 115.0
114.2 115.1
105.1 110.0 151.0 115.8 125.6 118.9 112.6
105.6 110.1 161.0 116.5 126.9 119.4 113.1
106.7 110.3 173.2 118.3 129.2 120.0 113.5
107.7 110.6 182.0 119.8 130.5 120.8 114.1
109.3 111.5 186.9 120.7 131.7 121.5 115.1
110.4 112.6 183.1 122.0 132.5 121.9 115.2
110.8 112.9 177.8 122.3 132.8 122.0 115.2
111.0 113.1 178.8 123.3 133.7 122.3 115.9
111.5 112.8 181.9 124.4 134.4 122.6 116.0
112.7 114.0 180.3 125.8 135.9 123.1 116.6
113.5 114.8 184.7 127.6 138.5 123.8 117.2
128.2
128.4
129.0
130.0
130.5
131.1
130.0
130.0
129.9
130.9
131.5
114.1
114.2
114.5
114.9
115.1
115.0
115.0
115.1
114.5
115.9
116.1
115.8
117.1
117.9
118.6
119.5
120.2
120.9
121.0
121.1
121.0
121.3
D E C E M B E R 1973 • PRICES
A 67
W H O L E S A L E PRICES: DETAIL
(1967=100)
1972
1972
1973
Nov.
Sept.
Oct.
Nov.
141.8
113.6
139.5
102.8
112.2
123.5
123.1
124.6
134.0
149.0
231.5
207.4
226.5
267.9
158.7
191.5
304.5
153.2
162.1
229.0
185.5
189.2
266.5
168.2
177.7
211.1
154.7
168.2
220.8
180.0
154.4
234.0
177.2
181.2
194.3
152.6
118.3
127.9
121.8
123.8
121.7
119.4
134.9
93.7
104.6
121.6
116.1
130.5
147.7
187.3
137.2
130.0
136.9
121.6
264.7
195.2
164.8
160.1
128.1
190.1
150.5
170.2
139.6
135.0
139.8
123.0
308.8
223.0
180.5
167.6
129.3
184.5
156.2
165.0
139.9
136.3
143.8
123.8
247.8
164.7
159.1
164.8
129.4
183.3
124.2
107.1
109.5
115.9
109.9
118.7
153.1
133.7
126.7
119.5
112.3
121.4
155.5
130.2
127.7
121.5
115.2
127.0
161.2
128.9
128.6
121.9
119.1
132.0
Farm products:
Nov.
Sept.
Oct.
Nov.
115.3
111.5
136.9
117.3
106.8
115.6
107.2
124.8
133.3
230.5
121.7
116.7
123.8
115.9
126.1
145.7
252.9
122.3
118.0
123.8
117.7
127.9
146.2
293.2
124.7
119.7
124.4
118.8
129.0
130.2
117.2
131.1
121.4
120.8
Plumbing equipment
119.2
Heating equipment
Fabricated structural metal products 123.1
124.9
Miscellaneous metal products
136.5
134.3
138.5
135.6
126.8
127.2
120.7
128.7
131.4
138.6
135.3
140.7
134.8
127.7
127.8
120.8
129.6
132.2
141.6
135.3
144.9
134.8
128.2
129.1
121.1
130.9
133.8
122.9
126.3
121.3
125.6
131.4
126.6
127.5
132.5
127.5
128.9
132.7
128.0
123.3
127.6
128.4
130.3
124.5
110.6
120.6
132.6
112.8
125.0
132.9
113.0
125.2
133.3
113.3
125.6
118.1
123.4
99.1
108.0
92.5
126.9
124.4
132.8
102.6
109.0
91.5
130.5
125.2
133.6
103.3
109.1
91.5
131.3
126.6
133.9
103.4
109.5
91.5
132.0
122.5
128.5
127.3
118.2
131.7
132.5
118.2
131.9
133.6
120.6
132.0
134.1
118.8
132.1
131.2
115.0
136.4
127.3
123.9
136.3
136.3
122.0
137.1
127.3
124.6
136.3
136.8
122.4
143.5
127.3
124.6
136.3
139.7
122.0
143.5
127.7
117.0
130.2
118.3
136.1
120.0
136.2
120.1
136.7
115.0
117.5
112.9
Photographic equipment and supplies 107.0
Other miscellaneous products
116.9
118.3
122.5
113.6
108.6
129.5
119.2
122.7
115.5
108.6
127.8
119.9
122.8
117.1
108.7
128.2
Pulp, paper, and allied products:
Fresh and dried produce
Grains
Livestock
Live poultry
Plant and animal fibers
Fluid milk
Eggs
Hay and s e e d s . . . .
Other farm products
Processed foods and feeds:
Cereal and bakery products
Meat, poultry, and fish
Dairy products
Processed fruits and vegetables
Sugar and confectionery
Beverages and beverage materials
Animal fats and oils
Crude vegetable oils
Refined vegetable oils
Vegetable oil end products
Miscellaneous processed foods
Manufactured animal feeds
Cotton products
Wool products
Manmade fiber textile products
Apparel
Textile housefurnishings
Miscellaneous textile products
287.0
162.6
128.5
127.1
257.3
162.8
130.3
130.4
256.3
160.7
131.0
130.5
239.8
160.4
131.9
130.1
201.2
157.0
119.0
123.0
114.7
111.5
222.6
167.3
132.2
130.9
133.3
146.1
224.1
167.3
133.4
132.1
133.3
156.6
239.0
167.3
133.1
133.5
139.3
210.9
100.9
118.2
105.1
103.6
123.2
92.4
89.6
114.1
104.3
121.2
116.2
104.7
279.5
95.9
93.1
118.3
105.3
126.0
116.8
104.7
273.0
95.9
92.4
121.2
105.4
128.1
117.1
104.9
241.8
104.9
93.1
122.1
114.6
100.8
109.7
122.0
118.4
113.4
110.4
125.8
120.2
111.4
115.1
126.4
121.2
113.9
116.3
126.8
93.3
94.0
94.7
94.4
98.6
100.9
101.1
101.4
97.9
98.5
97.7
99.5
166.8
130.9
133.3
130.2
216.9
149.0
138.2
155.9
214.5
149.4
134.6
158.2
211.1
149.5
169.9
159.0
Fuels and related products, and power:
Coal
Coke
Gas fuels
Electric power
Crude petroleum
Petroleum products, refined
Lumber and wood products:
Lumber
Millwork
Plywood
Other wood products
i Dec. 1968 = 100.
Agricultural machinery and equip...
Construction machinery and equip..
Metalworking machinery and equip.
General purpose machinery and
equipment
Special industry machinery and
equipment
Electrical machinery and equip
Miscellaneous machinery
Furniture and household durables:
Household furniture
Commercial furniture
Household appliances
Home electronic equipment
Other household durable g o o d s . . . .
products:
Flat glass
Concrete ingredients
Concrete products
Structural clay products excluding
refractories
Asphalt roofing
Gypsum products
Other nonmetallic minerals
products:
Rubber and rubber products
Crude rubber
Tires and tubes
Miscellaneous rubber products.
Plastic construction products (Dec.
1969 = 100)
Unsupported plastic film and sheeting
(Dec. 1970=100)
Laminated sheets, high pressure
(Dec. 1970= 100)
Iron and steel
Steelmill products
Nonferrous metals
Metal containers
Nonmetallic mineral
Chemicals and allied products:
Industrial chemicals
Prepared paint
Paint materials
Drugs and pharmaceuticals
Fats and oils, inedible
Agricultural chemicals and products.,
Plastic resins and materials
Other chemicals and products
Paperboard
Converted paper and paperboard...
Building paper and board
Machinery and equipment:
Hides, skins, leather, and products:
Hides and skins
Leather
Footwear
Other leather products
Pulp, paper and products, excluding
building paper and board
Metals and metal products:
Textile products and apparel:
Rubber and plastic
1973
Group
Group
Transportation
equipment:1
Motor vehicles and equipment
Railroad equipment
Miscellaneous
products:
Toys, sporting goods, small arms,
ammunition
Tobacco products
NOTE.—Bureau of Labor Statistics indexes.
A 68
N A T I O N A L P R O D U C T A N D I N C O M E • D E C E M B E R 1973
GROSS NATIONAL PRODUCT
(In billions of dollars)
1933
1929
Item
1941
1972
1950
1968
1969
1970
1971
III
103.1
101.4
Structures
.
Residential structures
Change in business inventories
Exports
Government purchases of goods and services..
Federal
National defense
Other
State and local
Gross national product in constant (1958)
1973
1972
IV
I
II
III
1
5 5 . 6 124.5 284.8 864.2 930.3 977.1 1,055.5 1,155.2 1 , 1 6 6 . 5 1 , 1 9 9 . 2 1,243.5 1,272.0 1 , 3 0 4 . 5
57.2 120.1 278.0 857.1 922.5 972.6 1M9.4 1,149.1 1,157.81,191.0
1,287.8 1,267.5 1,299.8
77.2
9.2
37.7
30.3
45.8
3.5
22.3
20.1
8 0 . 6 191.0 536.2 579.5 617.6 667.2 726.5
9 . 6 30.5 8 4 . 0 90.8 91.3 103.6 117.4
4 2 . 9 98.1 230.8 245.9 263.8 278.7 299.9
28.1 6 2 . 4 221.3 242.7 262.6 284.9 309.2
734.1
120.2
302.3
311.6
752.6 779.4 7 9 5 . 6
122.9 132.2 132.8
310.7 322.2 330.3
319.0 325.0 332.6
816.0
132.8
341.6
341.6
16.2
14.5
10.6
5.0
5.6
4.0
3.8
1.7
1.8
1.4
3.0
2.4
.9
1.5
.6
.5
-1.6
-1.4
17.9
13.4
9.5
2.9
6.6
3.9
3.7
4.5
4.0
181.5
172.9
118.3
41.3
77.0
54.5
53.9
8.7
8.4
189.4 194.5 198.2
181.2 189.9 193.7
124.3 130.9 134.1
43.0
45.3 4 7 . 2
81.2
85.5 86.9
56.9
5 9 . 0 59.6
56.4
58.4 59.1
8.2
4.6
4.5
4.4
7.9
4.4
202.0
197.3
138.0
49.5
88.6
59.2
58.6
4.7
3.2
1.1
7.0
5.9
.4
2.4
2.0
1.3
5.9
4.6
8.5
1.3
8.0
2.0
7.2
6.0
24.8
16.9
13.8
3.1
7.9
5 4 . 1 126.0 139.0 136.3 153.2 178.3
47.3 118.9 131.1 131.7 147.1 172.3
27.9
98.5 100.6 104.4 118.2
88.8
9.2
30.3 34.2 36.1 37.9 41.7
18.7 58.5 64.3 64.4 66.5 76.5
19.4 30.1 32.6 31.2 42.7 54.0
18.6 2 9 . 5 3 2 . 0 30.7 4 2 . 2 53.5
6.8
7.8
6.1
6.0
7.1
4.5
6.0
4.3
4.5
5.6
6.9
7.7
1.8
13.8
12.0
2.5
50.6
48.1
1.9
55.5
53.6
3.6
62.9
59.3
.8 - 4 . 6
66.3 73.5
65.5 78.1
-3.8
-3.5
74.0
79.7
77.7 • 8 3 . 2
.0
89.7
89.7
2.8
97.2
94.4
7.6
104.5
97.0
3 7 . 9 199.6 210.0 219.5 234.3 255.0
98.8
96.2
18.4
98.1 104.4
98.8
14.1 78.3 78.4 74.6 71.6 74.4
4 . 3 20.5 20.4 2 1 . 6 26.5 30.1
19.5 100.8 111.2 123.3 136.2 150.5
254.7
102.3
71.9
30.4
152.4
260.7 268.6 275.3
102.7 105.5 107.3
12 A 74.3 7 4 . 2
30.3
3 1 . 2 33.1
158.0 163.0 168.0
279.0
106.8
74.2
32.7
172.2
203.6 141.5 263.7 355.3 706.6 725.6 722.5 745.4 790.7
796.7
812.3 829.3 834.3
841.3
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
see the Survey of Current Business, (generally the July issue) and the Aug.
1966 Supplement to the Survey.
N A T I O N A L INCOME
(In billions of dollars)
1972
1929
1933
1941
1950
1968
1969
1970
1971
1973
1972
Item
III
Compensation of employees
Wages and salaries
Private
Government civilian
Supplements to wages and salaries
Employer contributions for social in-
Proprietors' income.
Farm
104.2 241.1 711.1 766.0 800.5
Dividends
Undistributed profits
Net interest
II
III*
40.3
51.1
29.5
64.8
154.6 514.6 566.0 603.9 644.1
50.4
45.5
.3
4.6
29.0
23.9
.3
4.9
62.1
51.9
1.9
8.3
146.8 464.9 509.7 542.0 573.8 627.3 632.5 648.7 666.7 682.3 699.3
124.4 369.2 405.6 426.9 449.7 493.3 497.5 510.9 525.1 538.7 553.2
5.0
19.4
17.9 19.0
19.6
20.3 2 0 . 0
20.1 20.9
20.4
20.5
17.4 77.8 85.1
95.5 104.7 113.8 115.1 117.7 120.7 123.1 125.7
.7
.5
2.7
7.8
49.7
56.3
61.9
70.3
79.7
80.5
82.5
90.8
92.6
94.7
.1
.6
.1
.4
2.0
.7
4.0
3.8
24.3
25.4
27.8
28.4
29.7
32.2
33.7
36.6
39.0
40.7
39.3
41.3
40.2
42.3
47.4
43.3
48.3
44.2
49.4
45.3
15.1
9.0
6.2
5.9
3.3
2.6
17.5
11.1
6.4
37.5
24.0
13.5
64.2
49.5
14.7
67.2
50.5
16.7
66.9
50.0
16.9
68.7
51.9
16.8
74.2
54.0
20.2
74.1
54.3
19.8
77.1
55.3
21.8
80.6
56.3
24.3
81.5
57.1
24.4
85.0
57.9
27.1
5.4
2.0
3.5
9.4
21.2
22.6
23.9
24.5
24.1
24.9
24.9
24.7
24.6
25.3
10.5
-1.2
15.2
37.7
84.3
79.8
69.2
80.1
91.1
91.5
9 8 . 8 104.3
107.9
112.4
10.0
1.4
8.6
5.8
2.8
1.0
.5
.4
2.0
-1.6
17.7
7.6
10.1
4.4
5.7
42.6
17.8
24.9
8.8
16.0
87.6
39.9
47.8
23.6
24.2
84.9
40.1
44.8
24.3
20.5
74.0
34.8
39.3
24.7
14.6
85.1
37.4
47.6
25.1
22.5
98.0
42.7
55.4
26.0
29.3
98.4 106.1 119.6
42.9
45.9 52.7
55.6
60.3
66.9
26.2
2 6 . 4 26.9
29.4
33.9 4 0 . 0
.5
-2.1
-2.5
-5.0
-3.3
-5.1
-4.8
-4.9
-6.9
-6.9
4.7
4.1
3.2
2.0
26.9
30.5
36.5
42.0
45.2
45.7
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table above.
I
86.8
Corporate profits and inventory valuation
Profits tax liability
IV
859.4 941.8 949.2 978.6 1,015.0 1,038.2 1,067.8
707.1 713.1
731.2 757.4 774.9
794.0
128.9 129.4
57.4
57.9
71.6
71.5
27.3
28.1
44.2
43.5
-7.3 -15.4 -21.1 -17.0
46.6
47.9
49.4
51.1
D E C E M B E R 1973 • NATIONAL PRODUCT A N D I N C O M E
A 69
R E L A T I O N OF GROSS N A T I O N A L PRODUCT, N A T I O N A L INCOME, A N D PERSONAL INCOME A N D SAVING
(In billions of dollars)
1972
1929
Item
1933
1941
1950
1968
1969
1970
1971
III
103.1
Gross national product.
Less:
Plus:
Capital consumption allowances
Indirect business tax and nontax liability
Business transfer payments
Statistical discrepancy
Less:
Plus:
Corporate profits and inventory valuation adjustment
Contributions for social insurance...
Excess of wage accruals over disbursements
18.3
74.5
81.6
11.3
.5
.4
23.3
.8
1.5
78.6
3.4
-2.7
85.9
3.8
-6.
.2
.7
1.0
102.4
102.3
105.1
106.9 109.0 110.6
110.5
4.7
112.8
4.7
0.2
115.6 117.2 118.5
4.9
4.
5.0
3.2
3.3
87.3
1.8
949.2
10.5
.2
15.2
2.
37.7
6.9
84.3
47.1
79.8
54.2
69.2
57.7
80.1
64.6
91.5
74.5
91.1
73.7
2.2
.9
.4
.6
978. 6 1 ,015.01,038.21,067.8
98.8
75.8
104.3 107.
89.3 90.
112.4
93.0
-.5
-.2
.0
98.3
96.4
107.3
32.7
26.0
4.6
32.9
26.2
4.7
33.7
26.4
4.7
9 6 . 0 227.6 688.9 750.9 808.3 863.5 939.2
943.7
976.1
116.5 116.6 117.5 142.2
142.8
147.4
145.1 149.
156.0
45.5
92.7 206.9 591.0 634.4 691.7 746.0 797.0
800.9
828.7
851.5 869.
891.1
46.5
45.8
.5
81.7 193.9 551.2 596.2 635.5 685.8 747.2
8 0 . 6 191.0 536.2 579.5 617.6 667.2 726.5
2.4
.9
17.7 19.7
14.3
15.8 16.8
1.0
1.0
.2
.5
1.0
.9
60.2 49.7
11.0 13.1 39.8
38.2 56.2
755.1
734.1
20.0
774.3
752.6
20.7
801.5 818.
779.4 795.
21.2 22.
840.1
816.0
23.0
45.8
54.4
150.6 112.2 190.3 249.6 499.0 513.6 534.8 554.9 577.9
579.3
595.1
.0
56.1
61.9
75.
2.5
5.8
.6
1.6
2.0
.7
2.2
4.4
.5
7.2
8.8
.8
26.
23.6
3.4
28.7
24.3
3.8
31.0
24.7
4.0
85.9
47.0
2.6
1.5
,
83.3
Personal outlays
Personal consumption expenditures.
Consumer interest payments
Personal transfer payments to foreigners
79.
77.2
1.5
.3
4.2
Disposable personal income in constant (1958)
dollars
1.2
1.6
1.7
1.7
14.3
Equals: Personal saving.
93.8
4 0 . 3 104.2 241.1 711.1 766.0 800.5 859.4 941.8
2.6
Personal tax and nontax payments
HIP
93.5 102.4 109.5
4.0
4.3
4.6
-6.4 -3.4 -1.5
1.5
Equals: Disposable personal income
Less:
8.2
7.1
.7
.6
.9
Government transfer payments
Net interest paid by government and
consumers
Dividends
Business transfer payments
Equals: Personal income
Less:
7.0
7.0
.6
.7
86.8
II
IV
5 5 . 6 124.5 284.8 864.2 930.3 977.1 1,055.51,155.2 1 , 1 6 6 . 5 1,199. 2 1 ,242.51,272.01 304.5
7.9
Subsidies less current surplus of government enterprises
Equals: National income
1973
1972
.2
-.9
3.3
20.7
97.9
.6
88.9
31.0
25.1
4.3
1.0
.0
.0
108.8 110.1
113.7
36.
27.:
4.'
38.0
28.1
5.0
34.7
26.9
4.8
996.61,019.01,047.1
1.
1.1
.9
50.0
51.0
51.1
603.9 604.8 609.5
NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also NOTE to table at top of opposite
page.
PERSONAL INCOME
(In billions of dollars)
1973
1972
Item
1971
1972
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.f
Total personal income
863.5 939.2 967.0 977.6 983.6 989.1 997.4 1,003.3 1,011.6 1,018.7 1,026.6 1,035.6 1,047.3 1,058.5 1,067.7
Wage and salary disbursements
Commodity-producing industries..
Manufacturing only
Distributive industries
Service industries
Government
573.3 627.8 643.8 648.4 654.0 661.7 667.2 671.1 677.6 682.0
206.3 2 2 6 . 0 232.8 235.0 236.8 239.2 242.2 243.5 245.9 248.3
160.5 175.9 181.6 183.8 185.6 187.1 189.6 190.6 192.9 194.7
138.3 151.5 155.2 155.6 157.2 158.7 159.3 160.6 162.2 163.2
104.7 116.1 119.2 119.8 121.3 122.9 124.1 124.9 126.4 126.8
123.9 134.2 136.7 138.1 138.7 140.9 141.6 142.2 143.1 143.7
6 8 8 . 2 6 9 3 . 2 698.9 706.0 712.3
251.7 253.4 254.8 257.8 260.1
197.0 197.9 198.7 200.8 202.7
164.5 165.3 167.1 168.7 169.6
127.7 129.4 130.8 132.5 133.4
144.4 145.1 146.2 147.0 149.2
Other labor income
36.6
40.7
42.0
42.3
42.7
43.0
43.3
43.6
43.9
44.2
44.5
44.8
45.3
45.8
46.2
Proprietors' income
Business and professional
Farm
68.7
51.9
16.8
74.2
54.0
20.2
75.9
55.1
20.8
77.5
55.1
22.4
77.9
55.6
22.3
80.1
56.1
24.0
80.6
56.3
24.3
81.0
56.4
24.6
81.0
56.8
24.2
81.5
57.1
24.4
81.9
57.3
24.6
83.7
57.8
25.9
85.1
58.0
27.1
86.4
58.1
28.3
86.5
58.2
28.3
25.6
Rental income
24.5
24.1
25.1
24.7
24.9
24.8
24.8
24.6
24.3
24.6
24.9
25.0
25.3
25.5
Dividends
25.1
26.0
26.3
26.3
26.5
26.8
26.9
27.0
27.3
27.3
27.4
27.6
28.2
28.3
28.5
Personal interest income
73.0
78.0
79.6
80.4
81.1
81.9
82.6
83.4
84.5
85.7
86.5
87.8
89.0
90.3
91.2
Transfer payments
93.2
103.0
112.6 112.5
113.8
114.5
115.3
115.9
116.0
116.9
119.0
120.2
121.4
30.9
34.7
41.9
42.0
42.4
42.5
42.8
43.4
43.6
43.9
44.0
Less: Personal contributions for social
insurance
Nonagricultural income
Agricultural income
109.7 113.7
35.4
35.7
839.8 911.5 938.8 947.7
2 8 . 2 29.9
23.7
27.7
35.9
953.6 957.4 965.3 970.9 979.5 986.4 9 9 4 . 2 1,001.8 1,012.1 1,021.8 1,030.8
3 0 . 0 31.8
32.1
35.2
32.4
32.0
32.2 32.4
33.8
36.7
36.9
NOTE.—Dept. of Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also NOTE to table at top of opposite
page.
41.7
A 70 FLOW OF FUNDS • D E C E M B E R 1973
SUMMARY OF FUNDS RAISED A N D A D V A N C E D IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1972
1971
Transaction category, or sector
1966
1967
1968
1969
1970
1971
1972
HI
H2
HI
1973
H2
HI
Funds raised, by type and sector
1 Total funds raised by nonfinancial sectors
2 Excluding equities
3
4
5
U.S. Government
Public debt securities
Budget agency issues
6 All other nonfinancial sectors
Corporate equities
7
Debt instruments
8
67.7
66.9
82.2
80.0
94.6
95.9
91.4
88.0
3.6
2.3
1.3
13.0
8.9
4.1
13.4 - 3 . 6
10.3 - 1 . 3
3.1 - 2 . 4
64.1
.8
63.3
69.2
2.2
67.0
81.2
-1.4
82.6
45.7
7.8
15.9
22.0
11.5
3.6
4.7
2.3
21.3
9.5
4.5
2.1
5.1
97.5 146.7 166.1 134.7 158.7 145.2 187.3 201.0
92.6 135.0 156.1 123.8 146.1 134.7 177.8 192.1
17.1
15.8
1.3
3
4
5
95.0
3.4
91.6
84.7 121.2 148.8 112.0 130.4 132.8 165.1 183.9
10.4
8.8
4.9
11.7 10.0 10.9 12.6
9.5
79.8 109.5 138.8 101.1 117.8 122.3 155.6 175.1
6
7
8
50.6
9.5
14.0
27.1
15.1
3.4
6.4
2.2
32.0
13.1
10.0
1.6
7.2
50.6
9.9
13.0
27.7
15.7
4.7
5.3
1.9
41.0
15.3
10.4
3.3
12.0
57.7
11.3
20.6
25.7
12.8
5.8
5.3
1.8
22.1
6.4
6.0
3.8
5.9
92.3
7.4
10.0
74.9
41.4
14.1
15.1
4.3
82.8
54.0
24.7
-3.4
7,6
9
10
11
12
13
14
15
16
17
18
19
20
21
84.7 121.2 148.8 112.0 130.4 132.8 165.1 183.9
79.8 109.5 138.8 101.1 117.8 122.3 155.6 175.1
5.3
3.4
4.3
11.2
3.0
5.7
6.1
3.8
12.7
11.4 17.0 12.3 17.9 16.1
11.9
7.5
22.9 38.3 63.2 30.0 46.6 56.2 70.5 71.9
42.5 48.5 59.5 47.9 49.0 50.9 68.2 84.5
3.2
4.1
4.0
4.2
4.4
5.3
4.9
7.3
9.3
8.1
9.5
11.6
13.4
5.3
8.7
10.4
44.2
51.2
34.6
37.0
63.8
33.9
35.7
36.8
22
23
24
25
26
27
28
29
30
12.8
12.9
-.1
25.5
26.0
-.5
17.3
13.9
3.4
22.7
24.2
-1.6
28.4
27.8
.5
12.4
10.5
1.9
22.2
17.2
4.9
1
2
9
10
11
12
13
14
15
16
17
18
19
20
21
Other private credit
Bank loans n.e.c
Consumer credit
Open-market paper
Other
38.9
5.6
11.0
22.3
11.7
3.1
5.7
1.8
24.4
10.7
6.4
1.0
6.2
22
23
24
25
26
27
28
29
30
By borrowing sector
Debt instruments
Foreign
State and local governments
Households
Nonfinancial business
Farm
Nonfarm noncorporate
Corporate
64.1
63.3
1.6
6.3
22.6
32.8
3.1
5.4
24.3
69.2
67.0
4.0
7.9
19.0
36.0
3.6
5.0
27.4
81.2
82.6
2.9
9.8
29.6
40.2
2.8
5.6
31.8
95.0
91.6
2.9
10.7
32.2
45.9
3.2
7.4
35.4
.8
-.3
1.1
2.2
.1
2.2
-1.4
.2
-1.5
3.4
.5
2.9
4.9
.1
4.8
11.7
11.7
10.0
-.4
10.4
10.9
.4
10.5
12.6
-.3
12.9
10.4
-.2
10.7
9.5
-.6
10.1
8.8
-.4
9.2
31
32
33
1.3
33.9
25.4
-.4
4.0
38.2
29.6
1.2
3.1
38.7
30.3
— 1.1
3.3
48.8
38.3
.4
3.0
47.3
38.8
2.8
5.7
60.2
47.4
3.2
3.4
69.9
54.6
.5
5.7
58.4
45.1
-.2
5.8
61.9
49.7
6.6
3.2
61.6
47.7
-3.0
3.7
78.3
61.3
4.0
10.8
93.7
73.0
3.6
34
35
36
37
68.1
4.0
81.1
11.8
95.7
14.5
91.0
-4.0
148.1 183.3 197.4
15.4 18.1 13.5
38
39
31
32
33
34
35
36
37
38
39
Debt capital instruments
State and local government securities
Corporate and foreign bonds
Mortgages
Home mortgages
Other residential
Corporate equities
Foreign
Corporate business
Totals including equities
Foreign
Nonfinancial business
Corporate
Memo: U.S. Govt, cash balance
Totals net of changes in U.S. Govt, cash balances
Total funds raised
By U.S. Government
83.2
16.6
19.7
46.8
26.0
8.8
10.0
2.0
26.3
9.3
11.2
-.9
6.6
*
92.4
11.9
13.2
67.3
39.7
10.3
14.8
2.6
46.4
21.8
19.2
-1.6
7.0
79.5
17.9
22.3
39.3
20.6
8.5
8.5
1.7
21.7
5.1
8.9
-1.0
8.7
86.9
15.4
17.2
54.3
31.5
9.1
11.5
2.3
30.9
13.5
13.6
-.8
4.6
94.7 143.5 165.6 134.9 152.1
10.0 22.3 16.8 22.9 21.7
87.3
12.0
14.4
60.9
35.6
9.1
13.5
2.7
35.0
14.5
15.8
-.3
5.0
97.6
11.9
12.0
73.7
43.7
11.5
16.0
2.5
58.0
29.3
22.5
-2.8
9.0
Private domestic net investment and borrowing in credit markets
Total, households and business
1
Total capital outlays1
2
Capital consumption 2
3
Net physical investment
4
5
Net funds raised
Excess net investment 3
Total business
6
Total capital outlays
7
Capital consumption
8
Net physical investment
9
10
11
12
13
14
Net debt funds raised
Corporate equity issues
Excess net investment 3
Corporate business
Total capital outlays
Capital consumption
Net physical investment
15
16
17
Net debt funds raised
Corporate equity issues3
Excess net investment
Households
18
Total capital outlays
19
Capital consumption
20
Net physical investment
21
22
Net funds raised
Excess net investment
3
i
190.6 188.1 207.6 226.7 224.2 252.5 291.1 246.3 258.7 279.9 302.3 323.8
118.5 128.4 140.4 154.3 166.0 179.0 193.4 175.8 182.2 190.3 196.6 205.5
72.2 59.7 67.2 72.4 58.2 73.5 97.7 70.5 76.6 89.7 105.7 118.3
1
2
3
81.0 70.2 98.5 133.1 88.4 108.5 117.7 148.8 165.6
- 8 . 6 -12.0 -25.0 -35.4 -17.9 -32.0 -28.0 -43.1 -47.4
4
5
97.9 108.9 108.0 116.6 133.3 115.8 117.3 127.4 139.3 145.6
63.2 69.5 74.6 80.3 87.6 78.8 81.7 86.2 88.9 92.7
34.7 39.4 33.5 36.3 45.8 37.0 35.5 41.2 50.4 53.0
6
7
8
56.5
15.7
57.3
2.4
68.3
-1.1
96.4
54.2
42.3
93.4
58.5
35.0
32.8
1.1
8.4
36.0
2.2
-3.2
40.2
-1.5
-4.0
76.5
38.2
38.3
71.4
41.5
29.9
75.0
45.1
29.9
24.3
1.1
12.9
27.4
2.2
.3
31.8
-1.5
-.4
9
10
11
96.0 105.4 108.6
61.8 63.8 66.5
34.1 41.5 42.1
12
13
14
35.4 33.9 35.7 44.2 34.6 36.8 37.0 51.2 63.8
9.2
2.9
4.8
11.7 10.4 10.5 12.9 10.7 10.1
- 4 . 4 - 8 . 4 -18.3 -16.8 -15.3 -21.4 -13.5 -19.8 -30.9
15
16
17
94.2
64.3
29.9
94.6 109.7 117.8 116.2 135.9 157.8 130.4 141.4 152.6 163.0 178.2
69.9 77.2 84.8 91.4 98.7 105.9 97.0 100.4 104.1 107.7 112.9
24.7 32.5 33.0 24.7 37.2 51.9 33.5 41.0 48.5 55.3 65.3
18
19
20
22.6
7.3
19.0
5.7
1
Capital outlays are totals for residential and nonresidential fixed
capital, net change in inventories, and consumer durables, except outlays
by financial business.
2
Capital consumption includes amounts for consumer durables and
excludes financial business capital consumption.
3
Excess of net investment over net funds raised.
NOTE.—Full statements for sectors and transaction types are available
on a quarterly basis and annually for flows and for amounts outstanding.
Requests for these statements should be addressed to the Flow of Funds
Section, Division of Research and Statistics, Board of Governors of the
Federal Reserve System, Washington, D.C., 20551.
45.9 42.5 48.5 59.5 47.9 49.0 50.9 68.2 84.5
9.2
4.8 11.7 10.4 10.5 12.9 10.7 10.1
2.9
- 9 . 4 -13.8 -23.9 -24.1 -21.4 -26.4 -20.4 -27.9 -40.7
29.6
2.9
83.7
49.8
33.9
32.2
.8
84.0
53.6
30.4
22.9
1.8
86.7 100.7
57.7 62.8
29.1 37.8
38.3 63.2
-1.1 -11.3
86.5
56.7
29.8
30.0
3.5
87.0
58.7
28.3
46.6
-5.6
56.2 70.5
-7.6 -15.2
71.9
-6.6
21
22
Funds raised by type and sector. Credit flows included here are the
net amounts raised by households, nonfinancial business, governments,
and foreigners. All funds raised by financial sectors are excluded. U.S.
Government budget issues (line 4) are loan participation certificates
issued by CCC, Export-Import Bank, FNMA, and GNMA, together with
security issues by FHA, Export-Import Bank, and TV A. Issues by Federally
sponsored credit agencies are excluded as borrowing by financial institutions. Such issues are in U.S. Government securities on p. A-71, line 11.
Corporate share issues are net cash issues by nonfinancial and foreign
corporations. Mortgages exclude loans in process. Open-market paper is
commercial paper issued by nonfinancial corporations plus bankers'
acceptances.
D E C E M B E R 1973 • FLOW OF FUNDS
A 71
DIRECT A N D INDIRECT SOURCES OF FUNDS T O CREDIT M A R K E T S
(Seasonally adjusted annual rates; in billions of dollars)
1971
Transaction category, or sector
1 Total funds advanced in credit markets to
nonfinancial sectors
By public agencies and foreign
2 Total net advances
U.S. Government securities
3
Residential mortgages
4
FHLB advances to S&L's
5
Other loans and securities
6
By agency—
U.S. Government
7
Sponsored credit agencies
8
9
Monetary authorities
10
Foreign
11 Agency borrowing not included in line 1
Private domestic funds advanced
12 Total net advances
U.S. Government securities
13
State and local obligations
14
Corporate and foreign bonds
15
16
Residential mortgages
17
Other mortgages and loans
Less: FHLB advances
18
1966
1967
1968
1969
1970
1971
1972
HI
1973
1972
H2
HI
H2
HI
80.0
95.9
88.0
92.6 135.0 156.1 123.8 146.1 134.7 177.8 192.1
1
11.9
3.4
2.8
.9
4.8
11.3
6.8
2.1
-2.5
4.9
12.2
3.4
2.8
.9
5.1
15.8
'.9
4.6
4.0
6.3
28.0
15.7
5.7
1.3
5.2
41.3
33.4
5.7
-2.7
4.9
16.9
7.3
5.2
4.9
5.1
3.5
-1.6
4.8
4.6
—. 1
4.8
2.0
-.6
4.9
3.2
3.7
.3
3.5
2.9
9.0
4.2
-.3
8.8
2.8
9.9
5.0
10.3
8.2
3.2
2.8
8.8
26.4
4.3
59.8 68.1
5.7
5.4
5.6
7.8
10.3 16.0
12.0 13.0
27.4 23.1
.9 - 2 . 5
87.2
13.3
9.5
13.8
15.5
35.9
.9
80.9
4.6
9.9
12.5
15.7
42.2
4.0
72.8
5.4
11.3
20.0
12.8
24.6
1.3
66.9
4.3
38.6
32.9
4.2
-5.5
7.1
44.0
34.0
7.1
.2
2.7
19.7
12.7
6.2
-2.4
3.2
14.1
2.0
4.3
2.5
5.4
42.6
21.4
5.0
7.8
8.5
2
3
4
5
6
2.3
6.0
.2
8.4
6.2
4.3
-1.4
8.4
27.3
.9
2.2
7.0
9.3
25.5
7.7
1.5
7.5
4.5
6.2
7.4
3.1
4.5
-4.1
10.6
5.0
.5
18.7
12.0
11.5
17.6
7
8
9
10
11
86.1 109.9 122.4 168.6 167.1
-9.2
2.1
13.4
7.1 25.3
17.9 15.4 12.0 11.9
7.4
22.1
16.8 14.2 12.1
9.7
24.8 33.4 38.4 50.8 50.4
25.0 42.3 48.3 71.0 94.0
-5.5
.2 - 2 . 4
7.8
2.5
12
13
14
15
16
17
18
*
98.0 145.4
16.3
-3.5
16.6 11.9
19.5 13.2
29.1 44.6
33.7 59.5
*
-2.7
20
21
22
23
Private
financial
intermediation
Credit market funds advanced by private financial
institutions
Commercial banking
Savings institutions
Insurance and pension funds
Other finance
45.4
17.5
7.9
15.5
4.5
63.5
35.9
15.0
12.9
-.3
75.3
38.7
15.6
14.0
7.0
54.9
18.2
14.5
12.3
9.9
74.9 111.4 150.2 112.2 110.6 130.5 170.1 188.0
35.1 50.6 69.7 53.2 48.0 57.2 82.4 100.8
16.9 41.5 48.7 45.4 37.5 48.4 48.9 49.9
17.3 14.1 16.0 12.5 15.7
14.1 17.8 23.1
1.2
5.7
5.3 15.8
9.4
10.6 21.0 14.2
19
20
21
22
23
24
25
26
Sources of funds
Private domestic deposits
Credit market borrowing
45.4
22.5
3.2
63.5
50.0
-.4
75.3
45.9
8.5
54.9
2.6
19.1
74.9 111.4 150.2 112.2 110.6 130.5 170.1 188.0
63.2 90.8 97.8 107.7 73.9 97.9 97.9 103.0
2.6 15.9
-.4
9 . 2 20.2
16.4 24.0 36.9
24
25
26
19.8
3.7
-.5
13.6
3.0
13.9
2.3
.2
12.0
-.6
21.0
2.6
-.2
11.4
7.2
33.3
9.3
11.3
-3.2
2.2
9.6
2.7
32.2
5.1
.7
11.3
15.1
1.9
-7.2
-.8
7.7
2.2
20.8
.8
5.3
11.5
3.2
16.2
5.5
-3.6
8.4
5.9
48.2
4.7
5.1
14.1
24.3
48.1
5.0
-1.4
16.5
28.0
27
28
29
30
31
17.6
8.2
2.6
2.1
2.3
2.3
4.2
-1.4
-2.5
4.6
1.9
1.7
20.3
8.0
-.2
4.7
5.8
2.1
45.0 - 2 . 4 - 4 . 2
16.8 - 8 . 3 - 1 3 . 0
8.7 - 1 . 1
-.1
7 . 4 10.1
8.2
10.2 - 4 . 4
-.6
2.0
1.3
1.4
15.4
4.1
2.1
4.9
3.7
.6
-23.5
-22.4
-2.7
8.6
-7.3
.3
15.2
-3.5
2.6
7.7
6.0
2.3
8.3
-3.3
.9
4.5
6.7
-.4
22.5
11.5
3.4
5.2
.8
1.7
16.0
11.3
1.3
1.6
-.4
2.2
32
33
34
35
36
37
24.4
20.3
-.2
13.3
7.3
52.1
39.3
4.3
18.3
16.7
5.4
48.3
33.9 - 2 . 3
3.5 - 1 3 . 7
3.4
17.5
8.0
12.9
66.6
56.1
15.0
24.2
16.9
94.2 102.2 110.6
81.2 85.7 92.6
3.4
7.7
8.7
32.9 31.0 44.0
40.6 46.0 45.3
4.1
2.1
2.0
12.8
10.6
2.1
14.5
12.1
2.4
7.7
4.8
2.8
10.5
7.1
3.5
13.0
9.6
3.4
16.5
12.1
4.4
17.9
15.1
2.8
42.0
56.3
68.7
50.5
64.2
90.0 117.7
87.1
93.0 111.7 123.8 125.1
46
17.9
75.9
2.1
14.1
93.2
4.3
12.7
86.4
2.9
18.0 30.2 30.6 10.8 31.2 30.1
7.9 22.2
14.6
67.9 102.8 113.7 103.3 130.3 100.7 106.6 100.9 112.5
9.1
1.8 23.2 13.5 20.1 26.3 11.6 15.3 16.4
47
48
49
19
27
28
29
30
31
32
33
34
35
36
37
Other sources
Foreign funds
Treasury balances
Insurance and pension reserves
Other, net
Private domestic nonfinancial
Direct lending in credit markets
U.S. Government securities
State and local obligations
Corporate and foreign bonds
Commercial paper
Other
investors
38 Deposits and currency
Time and savings accounts
39
40
Large negotiable CD'S
41
Other at commercial banks
42
At savings institutions
43
44
45
46
47
48
49
Money
Demand deposits
Currency
Total of credit market instr., deposits, and currency.
Putyic support rate (in per cent)
Private financial intermediation (in per cent)
Total foreign funds
12.1
-8.5
2.9
10.4 13.1
13.5
4.5
*
77.9 103.3 101.3 109.0 38
69.8 88.8 82.6 99.0 39
12.0
2.1
15.3 27.3 40
21.9 38.9 23.2 33.9 41
35.9 47.8 44.1 37.9 42
8.1
4.1
3.9
14.5
9.1
5.5
18.7
15.3
3.4
10.0
3.9
6.0
43
44
45
Corporate equities not included above
1 Total net issues
2
Mutual fund shares
Other equities
3
4 Acquisitions by financial institutions
5 Other net purchases
4.6
3.7
.9
6.0
-1.4
5.3
3.0
2.3
9.1
-3.8
5.1
5.8
-.7
10.8
-5.8
Notes
Line
1. Line 2 of p. A-70.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by Federally sponsored credit agencies.
Included below in lines 13 and 33. Includes all GNMA-guaranteed
security issues backed by mortgage pools.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Lines 39 + 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign affiliates.
9.5
9.5 14.7 12.0 13.0
4.8
1.2
2.6
— .o
.3
4.7
6.9 13.5 12.6 12.7
12.2 11.4 19.2 15.6 23.4
-2.7 -1.9 -4.6 -3.6 -10.4
16.3
2.1
14.2
15.0
1.3
12.4 11.5
9.6
-.8
- . 4 -1.7
13.3 12.0 11.3
17.6 13.6 12.4
-5.1 -2.1 -2.8
1
2
3
4
5
29. Demand deposits at commercial banks.
30. Excludes net investment of these reserves in corporate equities.
31. Mainly retained earnings and net miscellaneous liabilities.
32. Line 12 less line 19 plus line 26.
33-37. Lines 13-17 less amounts acquired by private finance. Line 37
includes mortgages.
39+44. See line 25.
45. Mainly an offset to line 9.
46. Lines 32 plus 38 or line 12 less line 27 plus line 45.
47. Line 2/line 1.
48. Line 19/line 12.
49. Lines 10 plus 28.
Corporate equities
Line 1 and 3. Includes issues by financial institutions.
A 72
U.S. BALANCE OF PAYMENTS • D E C E M B E R 1973
1. U.S. BALANCE OF P A Y M E N T S
(In millions of dollars)
1972
Line
1970
Credits+, debits —
1971
1973
1972
II
III
IV
II v
I
Summary—Seasonally adjusted
1
1
2
3
Merchandise trade balance
Exports
Imports
4
5
Military transactions, net
Travel and transportation, net
-3,374
-2,013
-2,918
-2,288
-3,558
-2,853
-954
-691
-846
-679
-864
-730
-825
-608
-727
-742
6
7
8
9
Investment income, net 2
U.S. direct investments abroad
6,260
7,920
3,506
-5,166
7,972
9,456
3,443
-4,927
7,862
10,433
3,492
-6,063
1,791
2,450
820
-1,479
1,950
2,600
876
-1,526
2,232
2,991
875
-1,634
2,309
3,152
1,006
-1,849
2,071
3,210
1,056
-2,195
10
581
739
850
202
209
234
237
244
11
3,630
807
-4,609
-1,426
-939
-870
150
616
Remittances, pensions, and other transfers
-1,481
-1,553
-1,570
-375
-373
-429
-397
-381
2,150
-745
-6,179
-1,801
-1,312
-1,299
-247
235
U.S. Government grants (excluding military)
-1,734
-2,045
-2,174
-563
-581
-452
-345
-549
416
-2,790
-8,353
-2,364
-1,893
-1,751
-592
-314
-1,829
244
-2,117
225
-1,714
137
-245
17
-542
7
-627
26
-671
111
-531
174
-433
-467
238
-1,429 -4,401
-151
-4,410 -4,943 -3,404
1,030
-115
160
-942
-966
-614
2,190
2,269
4,335
178
-862 -1,120
526
216
492
133
604
-183
183
-346
956
-263
257
169
-393
-1,148
178
209
553
-426
241
12
2,176 - 2 , 6 9 8 - 6 , 9 1 2 - 1 , 7 7 4 - 1 , 5 7 3 - 1 , 7 4 5
-960
-230
41,964 42,768 48,769
12,362
13,213
11,539
15,320 16,747
-39,788 -45,466 -55,681 -13,313 -13,935 -14,958 -16,280 -16,977
Foreign investments in the United States
13
14
15
16
17
18
19
20
21
22
23
24
25
U.S. Government 4 capital flows excluding nonscheduled
repayments, net
Nonscheduled repayments of U.S. Government assets
U.S. Government nonliquid liabilities to other than foreign
official reserve agencies
Long-term private capital flows, net
U.S. direct investments abroad
Foreign direct investments in the United States
U.S. securities other than Treasury issues
Other, reported by U.S. banks
Other, reported by U.S. nonbanking concerns
4
-3,031
15
224
451
781
-562
-19
-771 -2,025 -1,158
160
273
455
-40
51
-128
1,768
1,745
512
-442
-102
-293
106
50
39
-9,550
-9,842
-1,855
-2,652
27
28
29
30
Nonliquid short-term private capital flows, net
Claims reported by U.S. banks
Claims reported by U.S. nonbanking concerns
Liabilities reported by U.S. nonbanking concerns
-482 -2,347
-1,023 -1,802
-361
-530
902
-15
-1,637
-1,495
-315
173
310
206
62
42
-430
-267
-122
-41
31
32
Allocations of Special Drawing Rights (SDR's)
867
717
-1,205 -10,784
710
-3,112
178
-940
177
-1,626
177
-1,490
-3,921
229
-3,851 -21,965 -13,882
-2,307
-4,531
-3,851
-6,661
-1,607
1,456
109
246
-137
1,347
1,136
-70
281
7
-410
-274
-136
417
295
-32
154
2,367 - 3 , 8 3 8
-131 -1,939
- 7 7 -1,296
-54
-643
2,498 - 1 , 8 9 9
1,995 - 1 , 9 1 6
181
10
322
7
1,983
815
839
-24
1,168
734
73
361
-1,484 -10,499
376
1,645
9,121
-820
26
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Balance on current account and long-term capital
Net liquidity balance
Liquid private capital flows, net
Liquid claims
Reported by U.S. banks
Reported by U.S. nonbanking concerns
Liquid liabilities
To international and regional organizations
To other foreigners
Official reserve transactions balance
Financed by changes in:
Liquid liabilities to foreign official agencies
Other readily marketable liabilities to foreign official agencies 5
Nonliquid liabilities to foreign official reserve agencies reported by U.S. Govt
Gold
SDR's
Convertible currencies
Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20)
Reinvested earnings of U.S. incorporated affiliates of
foreign firms (excluded from lines 9 and 21)
For notes see end of table.
-5,988 -7,788
252 - 1 , 0 9 7
-99
-566
351
-531
-6,240 -6,691
-6,508 -6,908
181
682
87
-465
3,542
-1,234
-742
-492
4,776
3,862
104
810
-9,839 -29,753 -10,340
-1,556
-947
-782
-982 -1,793
-859 -1,796
-250
-32
127
35
-1,054
-1,327
263
10
-851
-4,524
1,057
4,467
399
27
34
117
1,202
259
189
-2
78
-167
-44
168
2,348
866
-249
381
1,350
32
547
-703
35
153
-231
-111
220
17
-171
-245
185
-55
3
-177
134
-15
-177
82
-16
233
-13
2,586
3,153
1,189
3,192
4,200
6
920
2,948
434
498
7,637
27,615
9,720
-810
-551
535
341
2,477
787
-851
2,152
389
()
(6)
(<0
6
()
(*)
(<0
9
949
6
()
(6)
8
716
6
()
(6)
832
6
()
(6)
DECEMBER 1973 • U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE
A 73
1. U.S. BALANCE OF P A Y M E N T S - C o n t i n u e d
(In millions of dollars)
1973
1972
1970
Credits + , debits —
1972
1971
III
IV
I
HP
-2,485
-1,029
-4,708
-4,701
-4,028
-1,661
-6,661
-10,499
-1,607
376
II
Balances excluding allocations of SDR's—Seasonally adjusted
-4,718
-10,706
Net liquidity balance
Official reserve transactions balance
-22,682
-30,470
-14,592
-11,050
Balances not seasonally adjusted
Balance on goods and services
Balance on goods, services, and remittances
Balance on current account
Balance on current account and long-term capital '
Balances including allocations of SDR's:
Net liquidity
Official reserve transactions
Balances excluding allocations of SDR's:
Net liquidity
Official reserve transactions
3,630
2,150
416
-3,031
807
-745
-2,790
-9,550
-4,609
-6,179
-8,353
-9,842
-1,489
-1,873
-2,471
-2,310
-2,409
-2,796
-3,333
-4,052
168
-263
-698
343
819
448
74
-865
721
332
-249
-965
.
.
-3,851
-9,839
-21,965
-29,753
-13,882
-10,340
-3,034
-741
-5,299
-5,590
-3,197
-1,503
-6,286
-9,995
-2,009
804
.
-4,718
-10,706
-22,682
-30,470
-14,592
-11,050
-3,034
-741
-5,299
-5,590
-3,197
-1,503
-6,286
-9,995
-2,009
804
1
Adjusted to balance of payments basis; excludes transfers under
military grants, exports under U.S. military agency sales contracts and
imports of U.S. military agencies.
2
Includes fees and royalties from U.S. direct investments abroad or
from foreign direct investments in the United States.
3
Equal to net exports of goods and services in national income and
product accounts of the United States.
4
Includes some short-term U.S. Govt, assets.
5 Includes changes in long-term liabilities reported by banks in the
United States and in investments by foreign official agencies in debt
securities of U.S. Federally-sponsored agencies and U.S. corporations.
6
Not available.
NOTE.—Data are from U.S. Department of Commerce, Bureau of Economic Analysis. Details may not add to totals because of rounding.
2. MERCHANDISE E X P O R T S A N D IMPORTS
(Seasonally adjusted; in millions of dollars)
Imports
Exports i
2
Trade balance
1970
1971
1972
1973
1970
1971
1972
1973
Month:
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
3,406
3,546
3,375
3,410
3,661
3,727
3,704
3,591
3,553
3,688
3,499
3,569
3,601
3,695
3,790
3,631
3,746
3,672
3,573
3,667
4,487
2,669
3,196
3,881
4,074
3,824
3,869
3,820
3,882
3,971
4,074
4,197
4,176
4,316
4,473
4,558
4,977
5,065
5,380
5,487
5,603
5,778
5,869
6,004
6,448
6,432
3,222
3,279
3,219
3,262
3,367
3,265
3,254
3,346
3,423
3,498
3,428
3,401
3,599
3,564
3,628
3,774
3,908
4,037
3,832
3,913
4,179
3,469
3,456
4,169
4,415
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002
5,281
5,541
5,432
5,291
5.761
5,794
5.762
6,021
5,575
5,905
184
267
156
148
324
462
450
245
130
190
71
168
2
130
160
-143
-161
-365
-259
-247
308
-800
-260
-288
-341
-649
-647
-596
-604
-497
-491
-530
-436
-421
-675
-444
-304
-476
-53
196
-158
-16
106
-17
873
527
Quarter:
I
II
II I
IV
10,327
10,798
10,848
10,756
11,086
11,049
11,727
9,746
11,767
11,673
12,447
13,347
15,421
16,868
18,321
9,720
9,864
10,023
10,327
10,792
11,719
11,924
11,094
13,403
13,370
13,903
14,888
16,254
16,846
17,358
607
933
816
425
294
-670
-197
-1,348
-1,637
-1,697
-1,456
-1,540
-833
22
963
Year 3
42,659
43,549
49,208
39,952
45,563
55,555
2,707
-2,014
-6,347
1
Exports of domestic and foreign merchandise; excludes Dept. of
Defense shipments of grant-aid military equipment and supplies under
Mutual Security Program.
2
General imports including imports for immediate consumption plus
entries into bonded warehouses.
3
1970
1971
1972
1973
Sum of unadjusted figures.
NOTE.—Bureau of the Census data. Details may not add to totals because of rounding.
A 74
U.S. GOLD TRANSACTIONS • DECEMBER 1973
3. U.S. N E T M O N E T A R Y G O L D T R A N S A C T I O N S W I T H FOREIGN C O U N T R I E S
AND INTERNATIONAL ORGANIZATIONS
(Net sales [—] or net acquisitions; in millions of dollars at $35 per fine troy ounce
until May 8, 1972, and at $38 per fine troy ounce thereafter)
1972
Area and country
1965
1964
1963
1966
1968
1967
1969
1970
1971
IV
Western Europe:
-100
-83
-884
-2
-60
329
-2
-80
-35
-180
-50
150
-2
80
-30
-879
-50
-835
1
-6
-35
—49
16
-47
200
H
-29
-13
-659
-980
-669
969
-204
-796
200
150
50
-25
-28
-23
-1
Italy
-130
Other
-399
Total
-88 -1,299
Canada
Latin American republics:
Argentina
Brazil
Colombia
Venezuela
Other
Total
-30
72
54
10
Other
Total
All other
Total foreign countries
......
- 2 5*
-39
-3
7
-25
-25
-175
-6
11
-40
-29
-80
-5
17
-41
9
-65
-54
-131
-5
-10
-4
-56
-11
-21
-42
-1
40
-4
-35
-10
-2
11
-9
2-91
-30
39
-3
42
-213
-38
-3
*
-119
25
20
-13
-6
-14
-14
-22
-95
-34
9
-50
-81
-75
12
3
-24
-86
-44
-366
-7
-16
-22
3-166
3-68
-1
-608 -1,031 -1,118
957
-36
-392
-1
- 3 6 -1,322
6-225
-392
- 3 6 -1,547
4
-81
-6
—631
-845
-3
-3
10
—156
-22
-544
-431 -1,009 -1,121
967
—787
-867
-547
177
III
2
-50
51
-50
56
*
II
-110
-473
-9
Intl Monetary Fund 5
Grand total
-52
-209
-19
-129
32
-11
.
-2
-85
325
500
41
-76
-11
Lebanon
Philippines
-58
600
-601
25
29
-25
-13
Asia:
Iraq
I
4
-25
-55
-40
-405
-225
-1
200
-60
-32
-81
618
-82
-518
1973
1972
22
1
Includes purchase from Denmark of $25 million.
2 Includes purchase from Kuwait of $25 million.
3 Includes sales to Algeria of $150 million in 1967 and $50 million in
1968.
4 Data for IMF include the U.S. payment of $385 million increase in
its gold subscription to the IMF and gold sold by the IMF to the United
States in mitigation of U.S. sales to other countries making gold payments
to the IMF. The country data include U.S. gold sales to various countries
in connection with the IMF quota payments. Such U.S. sales to countries
and resales to the United States by the IMF total $548 million each.
5
Includes IMF gold sales to and purchases from the United States,
U.S. payment of increases in its gold subscription to IMF, gold deposits
by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The
first withdrawal ($17 million) was made in June 1968 and the last withdrawal ($144 million) was made in Feb. 1972.
IMF sold to the United States a total of $800 million of gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of
repurchase; proceeds from these sales invested by I M F in U.S. Treasury
securities. IMF repurchased $400 million in Sept. 1970 and the remaining
$400 million in Feb. 1972.
6 Payment to the IMF of $259 million increase in U.S. gold subscription
less gold deposits by the IMF.
Notes to Table 5 on opposite page:
1
Represents net IMF sales of gold to acquire U.S. dollars for use in
IMF operations. Does not include transactions in gold relating to gold
deposit or gold investment (see Table 6).
2
Positive figures represent purchases from the IMF of currencies of
other members for equivalent amounts of dollars; negative figures represent repurchase of dollars, including dollars derived from charges on
purchases and from other net dollar income of the IMF. The United
States has a commitment to repurchase within 3 to 5 years, but only to
the extent that the holdings of dollars of the IMF exceed 75 per cent of
the U.S. quota. Purchases of dollars by other countries reduce the U.S.
commitment to repurchase by an equivalent amount.
3 Includes dollars obtained by countries other than the United States
from sales of gold to the IMF.
4 Represents the U.S. gold tranche position in the IMF (the U.S.
quota minus the holdings of dollars of the IMF), which is the amount
that the United States could purchase in foreign currencies automatically
if needed. Under appropriate conditions, the United States could purchase additional amounts equal to its quota.
5 Includes $259 million gold subscription to the IMF in June 1965 for
a U.S. quota increase, which became effective on Feb. 23, 1966. In figures
published by the IMF from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the
reserve position.
6 Includes $30 million of Special Drawing Rights.
7
Represents amount payable in dollars to the IMF to maintain the
value of IMF holdings of U.S. dollars.
NOTE.—The initial U.S. quota in the IMF was $2,750 million. The U.S.
quota was increased to $4,125 million in 1959, to $5,160 million in Feb.
1966, to $6,700 million in Dec. 1970, and revalued to $7,274 million in
May 1972 and $8,083 million in Oct. 1973 as a result of changes in par
value of the U.S. dollar. Under the Articles of Agreement subscription
payments equal to the quota have been made 25 per cent in gold and 75
per cent in dollars.
D E C E M B E R 1973 • U . S . R E S E R V E A S S E T S ; P O S I T I O N I N T H E I M F
A 75
4. U.S. R E S E R V E A S S E T S
(In millions of dollars)
Gold stock i
End ot
year
Total 2
Treasury
Convertible
foreign
currencies
Total
Reserve
position
Gold stock
End of
month
SDR's 4
IMF 3
1959..
I960..
1961..
1962..
1963..
1964..
21,504
19,359
18,753
17,220
16,843
16,672
19,507
17,804
16,947
16,057
15,596
15,471
19,456
17,767
16,889
15,978
15,513
15,388
116
99
212
432
1,997
1,555
1,690
1,064
1,035
769
1965..
1966..
1967..
1968..
1969..
15,450
14,882
14,830
15,710
716,964
6 13,806
13,235
12,065
10,892
11,859
613,733
13,159
11,982
10,367
10,367
781
1,321
2,345
3,528
72,781
6 863
326
420
1,290
2,324
1970..
1971..
1972 9 .
14,487
812,167
13,151
11,072
10,206
10,487
10,732
10,132
10,410
629
8 276
241
1,935
585
465
851
1,100
1,958
1 Includes (a) gold sold to the United States by the I M F with the right
of repurchase, and (b) gold deposited by the IMF to mitigate the impact
on the U.S. gold stock of foreign purchases for the purpose of making
gold subscriptions to the IMF under quota increases. For corresponding
liabilities, see Table 6.
2 Includes gold in Exchange Stabilization Fund.
3 The United States has the right to purchase foreign currencies equivalent to its reserve position in the IMF automatically if needed. Under appropriate conditions the United States could purchase additional amounts
equal to the U.S. quota. See Table 5.
4
Includes allocations by the IMF of Special Drawing Rights as follows:
$867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710
million on Jan. 1, 1972; plus net transactions in SDRs.
5 For holdings of F.R. Banks only, see pp. A-12 and A-13.
6 Reserve position includes, and gold stock excludes, $259 million gold
subscription to the IMF in June 1965 for a U.S. quota increase which
became effective on Feb. 23, 1966. In figures published by the IMF from
June 1965 through Jan. 1966, this gold subscription was included in the
U.S. gold stock and excluded from the reserve position.
Reserve
position
in
IMF3
SDR's 4
Treasury
Convertible
foreign
currencies 5
Total
Total 2
1972
Nov...
Dec...
13,307
13,151
10,487
10,487
10,410
10,410
403
241
459
465
1,958
1,958
1973
Jan...
Feb...
Mar. .
Apr...
May..
June. .
July..
Aug...
Sept...
Oct...
Nov...
13,054
12.926
12,931
12,904
12,916
12,914
12,918
12,923
12.927
1014,367
14,373
10,487
10,487
10,487
10,487
10,487
10,487
10,487
10,487
10,487
1011,652
11,652
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
10,410
1011,567
11,567
140
8
8
8
16
469
473
478
460
464
470
474
479
483
10541
547
1,958
1,958
1,958
1,949
1,949
1,949
1,949
1,949
1,949
102,166
2,166
7
Includes gain of $67 million resulting from revaluation of the German
mark in Oct. 1969, of which $13 million represents gain on mark holdings
at time of revaluation.
8
Includes $28 million increase in dollar value of foreign currencies
revalued
to reflect market exchange rates as of Dec. 31, 1971.
9
Total reserve assets include an increase of $1,016 million resulting
from change in par value of the U.S. dollar on May 8, 1972; of which,
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IMF $33 million, and SDR's $155 million.
10 Total reserve assets include an increase of $1,436 million resulting
from change in par value of the U.S. dollar on Oct. 18, 1973; consisting
of $1,165 million total gold stock, $1,157 million Treasury gold stock, $54
million reserve position in IMF, and $217 million special drawing rights.
NOTE.—See Table 24 for gold held under earmark at F.R. Banks for
foreign and international accounts. Gold under earmark is not included
in the gold stock of the United States.
5. U.S. P O S I T I O N IN T H E I N T E R N A T I O N A L M O N E T A R Y F U N D
(In millions of dollars)
Transactions affecting IMF holdings of dollars
(during period)
U.S. transactions with IMF
Transactions by
other countries
with IMF
Period
Payments
of
subscriptions in
dollars
1946—1957
1958—1963
1964—1966
1967
1968
1969
1970
1971
1972
Net
gold
sales
by IMF i
2,063
1,031
776
600
150
1,155
22
6712*
Transactions in
foreign
currencies 2
1,640
-84
7 541
150
1,362
200
IMF holdings
of dollars
(end of period)
IMF net
income
in
dollars
Per cent
of
U.S.
quota
U.S.
reserve
position
in IMF
(end of
period) 4
Total
change
Amount
827
2,740
6
775
2,315
1,744
775
3,090
4,834
28
75
94
1,975
1,035
5326
268
741
40
-94
-870
-1,034
1,929
1,350
694
4,740
3,870
2,836
4,765
6,115
6,810
92
75
55
71
91
94
420
1,290
2,324
1,935
585
465
Purchases
of
dollars 3
Repurchases
in
dollars
-45
60
45
-2,670
-1,666
-723
20
20
19
25
-28
-47
-114
-806
-1,343
-854
-24
1972—Nov
Dec
-4
-6
-4
-6
6,816
6,810
94
94
459
465
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
"Sept
Oct
Nov
-4
-5
-5
18
-4
-6
-4
-5
-4
-4
-5
-4
-5
-5
18
-4
-6
-4
-5
-4
750
-5
6,806
6,801
6,796
6,814
6,810
6,804
6,800
6,795
6.791
7,541
7,536
94
93
93
94
94
94
93
93
93
93
93
469
473
478
460
464
470
474
479
483
541
547
For notes see opposite page.
7 754
A 76
INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1973
6. U.S. LIQUID AND O T H E R LIABILITIES T O FOREIGN OFFICIAL I N S T I T U T I O N S , AND LIQUID
LIABILITIES T O ALL O T H E R FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
Official institutions 2
Total
Liquid
liabilities to
IMF
arising
from
gold
transactions 1
Liquid liabilities to
other foreigners
Liquid
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Liquid
Nonmarliabiliketable
Nonmar- nonconties
Other
Market- ketable vertible readily to comable
conmercial
marketU.S.
U.S.
vertible
banks
able
Treas.
Treas.
U.S.
liabili- abroad 6
bonds
5
bonds
Treas.
ties
and
and
bonds
notes 4
notes 3
and
notes
24,268
800
12.914
11,963
751
5,346
3,013
2,565
J26,433
\26,394
800
800
14,459
14,425
12,467
12,467
1,217
1,183
703
703
63
63
9
9
5,817
5,817
3,397
3,387
3,046
3,046
(29,313
\29,364
800
800
15,790
15,786
13,224
13,220
1,125
1,125
1,079
1,079
204
204
158
158
7,271
7,303
3,730
3,753
3,354
3,377
200
29,569
834
15,826
13,066
1,105
1,201
334
120
7,419
4,059
3,587
/31,145
\31,020
1,011
1,011
14,841
14,896
12,484
12,539
860
860
256
256
328
328
913
913
10,116
9,936
4.271
4.272
3.743
3.744
J35,819
\35,667
1,033
1,033
18,201
18,194
14,034
14,027
908
908
711
711
741
741
1,807
1,807
11,209
11,085
4,685
4,678
4,127
4,120
(38,687
\38,473
1 f 030
1,030
17,407
17,340
11,318
11,318
529
462
701
701
2,518
2,518
2,341
2,341
14,472
14,472
5,053
4,909
4,444
4,444
io/45,755
[45,914
1,019
1,019
ioi5,975
15,998
11,054
11,077
346
346
10 555
555
102,515
2,515
1,505
1,505
23,638
23,645
4,464
4,589
3.939
4,064
(47,009
\46,960
566
566
23,786
23,775
19,333
19,333
306
295
429
429
3,023
3,023
695
695
17,137
17,169
4,676
4,604
4,029
4,039
(67,681
\67,808
544
544
51,209
50,651
39,679
39,018
1,955
1,955
6,060
6,093
3,371
3,441
144
144
10,262
10,949
4,138
4,141
3,691
3,694
81,420
82,373
82,883
60,931
61,127
61,520
40,266
40,045
39,994
4,457
4,834
5,236
12.097
12.098
12,108
3,651
3,651
3,639
460
499
543
14,173
14,776
14,785
4,822
4,745
4,952
4,416
4,322
4,527
82,048
87,854
1290,884
1390,580
92,085
92,185
93,212
92,569
92,101
93,121
60,796
68,475
1271,331
70,748
70.915
70,693
71,019
70,513
69,775
69,691
38,534
45,413
46,924
45,949
46,112
45,705
46,129
45,714
45,172
45,201
12,110
5,798
12,110
6,377
6,917 1212,128
12,245
6,934
12,245
6,934
12,245
6,934
12,245
6,934
12,319
6,906
12,319
6,914
12,319
6,929
3,780
3.627
3,617
3,631
3.628
3,805
3,705
3,555
3,355
3,233
574
948
1,745
1,989
1,996
2,004
2,006
2,019
2,015
2,009
14,767
12,791
12,955
13,052
14,274
14,500
15,420
15,204
15,219
16,092
4,892
4,968
4,960
5,149
5,147
5,323
5,257
5,322
5,490
5,518
4,467
4,596
4,584
4,750
4,763
4.940
4,883
4,987
5.143
5.144
1
Includes (a) liability on gold deposited by the IMF to mitigate the
impact on the U.S. gold stock of foreign purchases for gold subscriptions
to the IMF under quota increases, and (b) U.S. Treasury obligations at
cost value and funds awaiting investment obtained from proceeds of sales
of 2gold by the IMF to the United States to acquire income-earning assets.
Includes BIS and European Fund.
3 Derived by applying reported transactions to benchmark data;
breakdown of transactions by type of holder estimated 1959-63.
4
Excludes notes issued to foreign official nonreserve agencies.
5
Includes long-term liabilities reported by banks in the United States
and debt securities of U.S. Federally-sponsored agencies and U.S. corporations.
6 Includes short-term liabilities payable in dollars to commercial banks
abroad and short-term liabilities payable in foreign currencies to commercial banks abroad and to "other foreigners."
7
Includes marketable U.S. Treasury bonds and notes held by commercial banks abroad.
8
Principally the International Bank for Reconstruction and Development and the Inter-American and Asian Development Banks. From Dec.
1957 through Jan. 1972 includes difference between cost value and face
value of securities in IMF gold investment account.
9 Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on first line are comparable with those
shown for the preceding date; figures on second line are comparable with
those shown for the following date.
i o Includes $101 million increase in dollar value of foreign currency
Total
Shortterm
liabilities reported
by
banks
in
U.S.
Marketable
U.S.
Treas.
bonds
and
notes 3»7
liabilities resulting from revaluation of the German mark in Oct. 1969 as
follows: liquid, $17 million, and other, $84 million.
11 Data on the second line differ from those on first line because certain accounts previously classified as "official institutions" are included
with "banks"; a number of reporting banks are included in the series for
the first time; and U.S. Treasury securities payable in foreign currencies
issued to official institutions of foreign countries have been increased in
value to reflect market exchange rates as of Dec. 31, 1971.
12
Includes $15 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates.
13
Includes $147 million increase in dollar value of foreign currency
liabilities to official institutions of foreign countries revalued to reflect
market exchange rates as follows: short-term liabilities, $15 million; nonmarketable convertible U.S. Treasury bonds and notes, $113 million; and
nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million.
NOTE.—Based on Treasury Dept. data and on data reported to the
Treasury Dept. by banks and brokers in the United States. Data correspond
generally to statistics following in this section, except for the exclusion
of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign
official nonreserve agencies, the inclusion of investments by foreign
official reserve agencies in debt securities of U.S. Federally-sponsored
agencies and U.S. corporations, and minor rounding differences. Table
excludes IMF "holdings of dollars," and holdings of U.S. Treasury letters
of credit and non-negotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.
DECEMBER 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
7. U.S. LIQUID A N D O T H E R LIABILITIES T O OFFICIAL
OF FOREIGN COUNTRIES, BY AREA
A 77
INSTITUTIONS
(Amounts outstanding; in millions of dollars)
Latin
American
republics
Total
foreign
countries
Western
Europe 1
Canada
18,194
/17,407
\17,340
4 15,975
15,998
/23,786
123,775
/51,209
150,651
10,321
8,070
8,062
4 7,074
7,074
13,620
13,615
30,010
30,134
1,310
1,867
1,866
1,624
1,624
2,951
2,951
3,980
3,980
1,582
1,865
1,865
1,888
1,911
1,681
1,681
1,414
1,429
4,428
5,043
4,997
4,552
4,552
4,713
4,708
14,519
13,823
250
259
248
546
546
407
407
415
415
303
303
302
291
291
414
413
871
870
1972—Oct.. .
Nov..,
Dec...
60,931
61,127
61,520
35,078
34,608
34,197
4,468
4.289
4,279
1,473
1,444
1,731
16,805
17,372
17,573
616
694
777
2,491
2,720
2,963
1973—Jan.r.
Feb.. .
Mar..,
Apr...
May r .
Junerr .
July .
Aug...
Sept.*
Oct.*.
60,796
68,475
6 71,331
7 70,748
70,915
70,693
71,019
70,513
69,775
69,691
34,146
40,773
6 45,229
7 45,608
46,646
46,967
47,140
47,260
47,099
47,515
4,201
4.290
4,221
4,157
4,104
4,111
4,043
3,836
3,759
3,851
1,728
1,895
1,749
1,915
1,903
1,998
2,072
2,014
1,860
1,927
17,033
17,907
16,564
15,415
14,425
13,727
13,686
13,631
13,289
12,601
673
809
823
839
940
992
928
738
769
735
3,015
2,801
2,745
2,814
2.897
2.898
3,150
3,034
2,999
3,062
End of period
1967..
1968 3
1969 3
1970 3
1971 5
1
Includes Bank for International Settlements and European Fund.
2
Includes countries in Oceania and Eastern Europe, and Western European dependencies in Latin America.
3 See note 9 to Table 6.
4
Includes $101 million increase in dollar value of foreign currency
liabilities
resulting from revaluation of the German mark in Oct. 1969.
5
Data on second line differ from those on the first line because certain
accounts previously classified as "Official institutions" are included in
"Banks"; a number of reporting banks are included in the series for
the first time; and U.S. Treasury liabilities payable in foreign currencies
t o official institutions of foreign countries have been increased in value by
$110 million to reflect market exchange rates as of Dec. 31, 1971.
Asia
Africa
Other
countries
6
Includes $15 million increase in dollar value of foreign currency
liabilities
revalued to reflect market exchange rates.
7
Includes $147 million increase in dollar value of foreign currency
liabilities revalued to reflect market exchange rates.
NOTE.—Data represent short- and long-term liabilities to the official
institutions of foreign countries, as reported by banks in the United States;
foreign official holdings of marketable and nonmarketable U.S. Treasury
securities with an original maturity of more than 1 year, except for nonmarketable notes issued to foreign official nonreserve agencies; and investments by foreign official reserve agencies in debt securities of U.S.
Federally-sponsored agencies and U.S. corporations.
8. S H O R T - T E R M LIABILITIES T O FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D STATES, BY T Y P E
(Amounts outstanding; in millions of dollars)
To nonmonetary international
and regional organizations 6
To all foreigners
Payable in dollars
End of period
Deposits
Demand
Time 2
39,770
41,351
41,393
55,018
55,036
20,460
15,785
15,795
10,399
6,459
6,959
5,924
5,961
5,209
4,217
5,015
14,123
14,123
33,025
33,025
7,336
5,519
5,514
6,385
11,335
429
368
368
386
392
59,598
60,112
60,222
7,071
7,011
8,288
5,146
5,379
5,629
33,071
32,774
31,850
14,310
14,948
14,455
58,622
63,705
65,341
64,596
66,157
66,070
67,312
66,779
66,424
67,628
7,452
7,786
7,606
8,118
8,364
9,113
8,988
8,435
8,779
9,076
5,533
5,595
5,612
5,654
5,714
5,829
5,876
6,139
6,139
6,760
30,134
36,522
37,947
36,440
35,965
34,931
34,556
34,257
33,702
32,869
15,504
13,801
14,175
14,383
16,114
16,197
17,892
17,948
17,804
18,923
Total
For notes see the following page.
Payable
in
foreign
currencies
U.S
Treasury
bills and
certifi-3
cates
Total 1
2
Other
shortterm
liab.4
Deposits
IMF
gold
investment 5
Demand
Time 2
U.S
Treasury
bills and
certificates
613
820
820
1,372
1,367
62
69
69
73
73
83
159
159
192
192
244
211
211
210
210
538
543
496
1,281
1,512
1,412
63
95
86
210
242
202
204
380
326
526
513
548
584
572
644
607
611
660
577
1,380
1,418
1,426
1,429
1,579
1,569
1,486
1,485
1,550
1,767
118
133
114
119
141
155
206
178
80
70
172
144
134
112
119
134
114
116
98
93
279
287
260
221
148
169
116
61
62
173
800
400
400
400
400
A 78
INTL. CAPITAL TRANSACTIONS OF THE U.S. • D E C E M B E R 1973
8. S H O R T - T E R M LIABILITIES T O FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D STATES, BY T Y P E — C o n t i n u e d
(Amounts outstanding; in millions of dollars)
To official institutions l0
To residents of foreign countries
Payable in dollars
Total
Deposits
Demand
Time
2
U.S.
Treasury
bills and
certificates 3
Payable in dollars
Other
shortterm
liab.4
Payable
in
foreign
currencies
Total
Deposits
Demand
U.S.
Treasury
bills and
certificates 3
Other
shortterm
liab.4
3,844
13,367
13,367
32,311
32,311
2,159
1,612
1,612
3,086
3,177
38,786
/40,499
\40,541
/53,632
\53,661
20,397
15,716
15,726
10,326
6,386
6,876
5,765
5,802
5,017
4,025
3,971
13,511
13,511
32,415
32,415
7,113
5,138
5,133
5,489
10,443
429
368
368
386
392
11,077
19,333
19,333
39,679
39,018
1,930
1,652
1,652
1,327
2,942
2,554
2,554
2,504
2,039
58,855
59,143
59,306
7,008
6,915
8,203
4,935
5,137
5,427
32,867
32,394
31,523
13,506
14,154
13,657
538
543
496
40,266
40,045
39,994
1,335
1,271
1,589
2,569
2,643
2,876
32,794
32,315
31,453
3,398
3,645
3,905
57,768
62,800
64,463
63,751
65,149
65,145
66,432
65,905
65,534
66,437
7,333
7,653
7,492
7,999
8,223
8,958
8,781
8,257
8,699
9,006
5,361
5,450
5,478
5,542
5,596
5,695
5,761
6,023
6,042
6,666
29,855
36,235
37,687
36,219
35,817
34,762
34,440
34,196
33,640
32,696
14,693
12,948
13,257
13,407
14,942
15,087
16,843
16,819
16,494
17,493
526
513
548
584
572
644
607
611
660
577
38,534
45,413
46,924
45,949
46,112
45,705
46,129
45,714
45,172
45,201
1,405
1,756
1,543
1,714
1,719
1,940
1,934
1,575
1,631
1,810
2,875
2,841
2,832
2,916
2,945
3,117
3,185
3,348
3,226
3,836
29,779
36,147
37,620
36,137
35,736
34,684
34,360
34,118
33,554
32,613
4,303
4,497
4,757
4,996
5,525
5,777
6,461
6,545
6,634
6,815
To banksii
1,620
To other foreigners
Payable in dollars
Total
Deposits
Total
Demand
Time
2
U.S.
Treasury
bills and
certificates
Deposits
Total
Demand
Time
2
U.S.
Treasury
bills and
certificates
Other
shortterm
liab.4
27,709
21,166
21,208
13,953
14,643
23,419
16,917
16,949
10,034
10,721
16,756
12,376
12,385
7,047
3,399
1,999
1,326
1,354
850
320
4,644
3,202
3,197
2,130
6,995
4,064
4,029
4,039
3,691
3,694
1,711
1,688
1,688
1,660
1,660
1,935
1,886
1,895
1,663
1,666
107
131
131
96
96
312
325
325
274
271
18,589
19,097
19,312
13,805
14,404
14,460
3,798
3,938
4,649
434
481
525
9,570
9,981
9,270
4,417
4,322
4,527
1.875
1,706
1,954
1,933
2,014
2,026
70
75
65
538
528
481
19,234
17,387
17,539
17,803
19,037
19,440
20,303
20,191
20,362
21,236
14,413
12,449
12,579
12,654
13,889
14,042
15,003
14,720
14,686
15,642
4,155
4,084
4,144
4,335
4,645
5,053
4,957
4,806
5,096
5,219
415
483
518
514
535
404
432
491
603
651
9,835
7,877
7,912
7,799
8,701
8,577
9,605
9,413
8,979
9,765
4,467
4,596
4,584
4,751
4,764
4,941
4,883
4,987
5,143
5,145
1,773
1,813
1,805
1,951
1,859
1,965
1,890
1.876
1,972
1,977
20,70
2.127
2.128
2,113
2,116
2,174
2,144
2,183
2,213
2,179
69
83
63
75
73
70
72
68
77
76
555
573
588
611
716
732
776
861
1 Data exclude "holdings of dollars" of the IMF.
2
Excludes negotiable time certificates of deposit, which are included
in "Other."
3 Includes nonmarketable certificates of indebtedness issued to official
institutions of foreign countries.
4 Principally bankers' acceptances, commercial paper, and negotiable
time
certificates of deposit. See also note 8(a).
5
U.S. Treasury bills and certificates obtained from proceeds of sales of
gold by the IMF to the United States to acquire income-earning assets.
Upon termination of investment, the same quantity of gold was reacquired by the IMF.
6 Principally the International Bank for Reconstruction and Development and the Inter-American Development Bank.
Includes difference between cost value and face value of securities in
IMF gold investment account.
7 Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
8
Data on second line differ from those on first line because (a) those
liabilities of U.S. banks to their foreign branches and those liabilities of
Other
shortterm
liab.4
881
912
U.S. agencies and branches of foreign banks to their head offices and
foreign branches, which were previously reported as deposits, are included
in "Other short-term liabilities"; (b) certain accounts previously classified
as "Official institutions" are included in "Banks"; and (c) a number of
reporting banks are included in the series for the first time.
9 Includes $15 million increase in foreign currency liabilities to official
institutions of foreign countries revalued to reflect market exchange rates.
lOForeign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
i i Excludes central banks, which are included in "Official institutions."
NOTE.—"Short term" refers to obligations payable on demand or having
an original maturity of 1 year or less. For data on long-term liabilities
reported by banks, see Table 10. Data exclude the "holdings of dollars"
of the International Monetary Fund; these obligations to the IMF constitute contingent liabilities, since they represent essentially the amount of
dollars available for drawings from the IMF by other member countries.
Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Development Bank and the International Development Association.
D E C E M B E R 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A
79
9. S H O R T - T E R M LIABILITIES T O FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D S T A T E S , BY C O U N T R Y
(End of period. Amounts outstanding; in millions of dollars)
1973
1972
Area and country
Dec.
Europe:
Austria
Denmark
Germany
Italy
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe1
Other Eastern Europe
Total
Latin America:
Argentina
Bahamas 2
Brazil
Chile
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands Antilles and Surinam
Other Latin America
Total
Asia:
China, People's Rep. of (China Mainland
China, Republic of (Taiwan)
Hong Kong
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other
Total
Africa:
Egypt
Morocco
South Africa
Zaire
Other
Total
Other countries:
Australia
All other
Total
Total foreign countries
International and regional:
International 3
Latin American4 regional
Other regional
Total
Grand total
For notes see the following page.
r
Jan.
r
Feb.'
Mar.
r
Apr.
r
May r
June r
July
Aug.
Sept. p
Oct.f
272
1,092
284
163
4,441
5,346
238
1,338
1,468
978
416
256
1,184
2,857
97
5,011
117
1,483
11
81
268
974
321
152
4,434
5,034
210
1,085
1,356
973
439
231
1,189
2,924
109
5,510
82
1,464
14
71
267
1,165
364
158
4,483
10,494
224
1,041
1,762
995
498
222
1,403
2,845
94
4,546
78
1,502
21
65
281
1,253
400
142
5,000
12,990
223
968
2,532
1,018
518
256
1,483
2,901
105
4,657
58
1,619
14
71
292
1,245
406
168
5,167
12,701
175
1,020
2,543
1,035
502
250
1,682
2,959
118
4,741
69
1,772
8
71
301
1,373
502
244
5,327
12,161
219
1,171
2,427
1,046
511
325
1,787
3,272
71
5,899
73
2,164
9
66
297
1,376
489
194
5,406
12,003
219
1,072
2,369
1,049
500
334
1,905
3,268
75
6,317
66
2,360
11
74
305
1,456
477
165
5,452
12,837
240
870
2,029
1,082
477
282
1,951
3,310
102
6,457
66
2,965
18
81
302
1,378
437
153
5,246
12,912
236
1,506
1,945
1,055
472
237
1,871
3,226
115
5,943
57
3,015
17
90
292
1,377
409
145
5,301
13,256
215
1,140
2,022
1,024
459
259
1,835
3,309
72
5,593
58
3,099
16
114
204
1,410
470
135
4,135
14,162
280
1,095
2,534
999
467
284
1,787
3,320
83
6,403
69
3,423
40
96
27,134
26,840
32,227
36,488
36,924
38,949
39,383
40,621
40,212
39,994
41,393
3,467
3,861
3,306
3,293
3,600
3,796
3,327
3,392
3,786
3,720
3,811
631
539
605
137
210
6
831
167
225
140
1,077
860
86
44
631
291
643
132
210
7
783
193
176
140
995
839
81
236
689
263
648
136
218
7
800
201
167
138
1,051
827
84
237
687
200
671
143
184
6
788
171
172
132
948
804
76
216
694
228
703
140
197
7
853
168
167
143
1,044
818
72
243
730
502
768
137
219
7
843
192
170
150
967
778
64
269
727
462
770
140
200
10
925
186
180
180
1,054
783
68
648
750
796
920
134
200
7
919
194
190
128
1,066
744
78
408
800
563
732
126
168
7
975
217
177
126
1,078
791
61
402
889
589
700
127
167
7
1,044
204
178
114
941
791
65
463
765
457
745
137
207
7
1,029
231
152
115
1,130
742
70
529
5,558
5,356
5,463
5,197
5,478
5,796
6,323
6,532
6,224
6,279
6,317
39
675
318
98
108
177
15,843
192
438
171
1,071
39
737
336
115
101
139
14,570
224
445
211
951
37
783
319
134
96
146
14,733
210
453
187
897
49
816
337
114
89
137
12,344
227
513
170
869
43
831
330
125
90
144
10,415
214
520
166
940
44
832
368
145
117
142
9,056
231
575
177
873
41
846
341
110
155
161
8,458
226
544
175
883
38
790
289
141
176
159
8,126
219
545
146
958
43
810
356
103
140
146
8,003
217
541
140
1,139
40
813
349
99
254
173
7,680
213
482
143
1,165
37
779
363
105
169
278
7,061
198
480
161
1,138
19,131
17,867
17,995
15,665
13,818
12,560
11,940
11,588
11,640
11,412
10,769
24
12
115
21
768
21
9
111
18
573
28
8
104
23
728
17
13
125
22
739
33
9
125
28
798
67
8
120
45
786
29
11
155
17
904
29
15
169
21
803
41
10
100
27
683
34
11
132
19
765
34
10
103
26
747
939
733
891
917
992
10,25
1,118
1,037
862
962
920
3,027
51
3,046
65
2,861
57
2,489
54
2,882
57
2,961
60
2,985
71
3,202
61
3,124
57
3,106
61
3,169
59
3,077
3,111
2,918
2,903
2,939
3,022
3,056
3,263
3,181
3,168
3,228
59,306
57,768
62,800
64,463
63,751
6,5149
65,145
66,432
65,905
65,534
66,437
952
307
154
931
301
147
958
318
141
980
320
126
983
337
109
1,132
345
102
1,149
329
89
1,097
309
81
1,123
289
72
1,181
298
71
1,402
299
66
1,412
1,380
1,418
1,426
1,429
1,579
1,569
1,486
1,485
1,550
1,767
60,719
59,148
64,218
65,889
65,180
66,729
66,714
67,919
67,389
67,085
68,204
A 80
INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1973
9. S H O R T - T E R M LIABILITIES T O FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D S T A T E S , BY C O U N T R Y — C o n t i n u e d
(End of period. Amounts outstanding; in millions of dollars)
Supplementary data 5
1972
1971
1973
1972
1971
Area and country
Area and country
Apr.
Dec.
Apr.
Dec.
Apr.
Other Western Europe:
Cyprus
Iceland
Ireland, Rep. of
7
10
29
2
11
16
2
9
15
3
9
17
9
12
22
Other Latin American republics:
Bolivia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Nicaragua
Paraguay
Trinidad & Tobago
59
43
90
72
80
97
19
44
19
47
15
14
55
62
123
57
78
117
18
42
19
50
17
10
53
70
91
62
83
123
23
50
32
66
17
15
87
92
114
121
76
132
27
58
41
61
22
20
65
75
104
109
86
127
25
64
32
79
26
17
Other Latin America:
Bermuda
British West Indies
(2)
(2)
(2)
(2)
Other Asia:
Afghanistan
Bahrain
Burma
Cambodia
Iran
Iraq
Jordan
15
35
3
2
67
7
3
19
21
10
5
59
10
2
17
18
5
2
88
9
2
25
24
2
3
93
10
4
Apr.
Dec.
Apr.
Dec
36
2
60
28
28
39
41
43
4
3
161
20
3
46
23
33
29
79
35
4
4
159
16
3
60
25
58
53
80
45
6
6
185
39
2
55
54
59
344
77
5
4
135
13
12
6
13
21
91
25
2
1
10
6
5
14
23
11
8
9
23
274
46
2
1
6
9
3
13
31
29
11
14
25
296
56
2
5
6
7
10
7
32
57
10
23
30
393
85
2
3
11
10
7
28
22
23
27
30
Other Asia—Cont.:
38
32
23
36
Ryukyu Islands (incl. Okinawa) 6
Saudi Arabia
Singapore
Sri Lanka (Ceylon)
Other Africa:
Ethiopia (incl. Eritrea)
127
100
Southern Rhodesia
19
7
7
()
( 3)
114
7
()
4
1 Includes Bank for International Settlements and European Fund.
2 Bermuda included with Bahamas through Dec. 1972.
3 Data exclude "holdings of dollars" of the International Monetary
Fund but include I M F gold investment until Feb. 1972, when investment
was terminated.
All other:
New Zealand
4
Asian, African, and European regional organizations, except BIS and
European Fund, which are included in "Europe."
5
Represent a partial breakdown of the amounts shown in the "other"
categories (except "Other Eastern Europe").
6 Included in Japan after Apr. 1972.
7
N o t available.
10. LONG-TERM LIABILITIES T O FOREIGNERS R E P O R T E D
BY BANKS IN T H E U N I T E D S T A T E S
(Amounts outstanding; in millions of dollars)
To foreign countries
Total
To
intl.
and
regional
Total
Official
institutions
Banks i
Other
foreigners
Germany
United
Kingdom
Other
Europe
Total
Latin
America
Japan
110
164
46
42
52
7
26
30
239
152
111
655
385
3
2,490
1,703
902
889
789
446
1,601
914
457
1,505
695
144
56
165
257
40
53
56
1,068
1,051
(1,000
\1,018
615
600
562
580
453
450
439
439
97
94
93
93
269
269
259
259
87
87
165
165
165
165
68
68
63
63
37
37
32
32
135
134
136
136
1,044
1,276
1,406
1,399
1,379
1,467
1,527
1,532
1,504
1,473
617
613
697
686
688
769
770
777
760
735
427
663
709
713
691
697
757
755
744
738
74
304
328
329
313
311
311
322
318
312
257
258
269
274
274
274
305
305
302
305
96
100
112
111
104
113
141
127
123
122
165
164
164
164
164
164
164
165
165
165
61
59
66
68
68
68
68
68
68
68
30
233
234
239
231
233
265
265
263
265
127
118
133
128
115
125
145
143
145
140
i Excludes central banks, which are included with "Official institutions.'
Country or area
87
88
Other
Asia
2
Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date.
D E C E M B E R 1973 • I N T L . C A P I T A L T R A N S A C T I O N S O F T H E U . S .
A 81
11. E S T I M A T E D F O R E I G N H O L D I N G S OF M A R K E T A B L E U.S. T R E A S U R Y B O N D S A N D N O T E S
(End of period; in millions of dollars)
1973
1972
Nov.
Oct.
Europe:
Belgium-Luxembourg
Sweden
6
85
45
326
79
5
6
35
45
308
79
5
Other Western Europe
Total foreign countries
Apr.
May
June
July
Aug.
Sept.*
Oct.f
6
85
45
327
79
5
6
110
45
327
79
5
6
135
44
276
79
5
6
135
43
278
79
5
6
135
44
300
79
5
6
135
43
281
85
5
6
135
43
280
85
5
6
135
42
275
85
5
6
135
37
236
85
5
7
165
37
247
85
5
7
165
37
290
85
5
545
547
572
544
546
569
555
554
547
504
546
588
558
558
559
561
561
560
560
560
560
560
560
1
6
1
6
1
6
1
6
1
6
1
6
1
6
1
6
1
6
4
3
8
3
9
3
9
3
7
7
7
7
7
7
7
7
7
7
11
12
12
3,756
10
4,003
10
4,380
10
4,867
10
5,421
10
5,961
10
5,978
10
5,978
10
5,977
10
5,977
9
5,949
9
5,950
11
5,950
11
3,766
4,013
4,391
4,877
5,431
5,971
5,988
5,988
5,988
5,987
5,959
5,961
5,961
133
133
133
183
183
183
183
183
183
183
183
158
158
•
*
25
25
25
25
25
25
25
25
25
25
25
4,863
5,257
5,661
6,223
6,749
7,293
7,333
7,318
7,317
7,308
7,241
7,261
7,303
186
27
186
28
186
28
186
28
176
26
186
26
176
27
142
27
72
27
1
28
1
45
21
45
6
47
International and regional:
International
Latin American regional
213
214
214
214
202
212
202
169
100
29
46
66
53
5,076
5,471
5,874
6,436
6,951
7,505
7,535
7,487
7,417
7,337
7,287
7,327
7,356
Total
Grand total
Mar.
"559
Total
Total
Feb.
479
Latin America:
Latin American republics
Other Latin America
Other Asia
Jan.
478
Total
Asia:
Dec.
NOTE.—Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1
year, and are based on benchmark surveys of holdings and regular monthly
reports of securities transactions (see Table 16).
12. N O N M A R K E T A B L E U.S. T R E A S U R Y B O N D S A N D N O T E S ISSUED T O OFFICIAL I N S T I T U T I O N S O F
FOREIGN COUNTRIES
(In millions of dollars or dollar equivalent)
Payable in foreign currencies
Payable in dollars
End of period
Total
Total
Belgium
Canada 1
China,
Rep. of
(Taiwan)
1969
1970
1971
4
3,181
3,563
5 9,657
1,431
2,480
7,829
32
32
32
1,129
2,289
2,640
20
20
20
1972—Nov
Dec
15,872
15,872
14,345
14,333
32
20
2,840
2,840
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
16,016
15,863
615,870
616,015
16,012
16,189
16,089
16,015
15,813
15.691
15.692
14,474
14,474
14,464
14,459
14,456
14,633
14,533
14,383
14,183
14,233
14,233
20
20
20
20
20
2,840
2,840
2,840
2,840
2,840
2,840
2,840
2,690
2,490
2,540
2,540
20
20
20
1
Includes bonds issued in 1964 to the Government of Canada in connection with transactions under the Columbia River treaty. Amounts outstanding end of 1967 through Oct. 1968, $114 million; Nov. 1968 through
Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and
Oct. 1970 through Oct. 1971, $24 million.
2 Notes issued to the Government of Italy in connection with military purchases in the United States.
3 In addition, nonmarketable U.S. Treasury notes amounting to $125
million equivalent were held by a group of German commercial banks from
20
10
5
2
Germany
Italy 2 Korea Thailand
Total
4
Germany 3
4
1,084
542
612
Italy
125
Switzerland
541
541
1,215
5,000
135
25
22
15
15
15
100
100
100
11,315
11,315
22
22
15
15
100
100
1,528
1,539
306
306
1,222
1,233
11,471
11,471
11,471
11,471
11,471
11,670
11,670
11,670
11,670
11,670
11,670
22
22
22
22
22
22
22
22
22
22
22
100
100
100
100
100
100
1,542
1,389
61,407
61,556
1,556
1,556
1,556
1,631
1,631
1.458
1.459
306
153
153
172
172
172
172
172
172
1,236
1,236
1,254
1,384
1,384
1,384
1,384
1,458
1,458
1.458
1.459
1,750
1,083
5 1,827
June 1968 through Nov. 1972. The dollar value of these notes was increased
by $10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971.
4
Includes an increase in dollar value of $84 million resulting from
revaluation of the German mark in Oct. 1969.
5 Includes $106 million increase in dollar value of foreign currency
obligations revalued to reflect market exchange rates as of Dec. 31, 1971.
6 Includes $15 million increase in Mar. and $145 million increase in
Apr. in dollar value of foreign currency oblieations revalued to reflect
market exchange rates.
A 82
INTL. CAPITAL TRANSACTIONS OF THE U.S. • D E C E M B E R 1973
13. S H O R T - T E R M CLAIMS O N FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D S T A T E S , BY C O U N T R Y
(End of period. Amounts outstanding; in millions of dollars)
1971
1972
Dec.
Dec. 1
1973
Area and country
Europe:
Austria
Belgium-Luxembourg
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe
U.S.S.R
Other Eastern Europe
Total
Canada
Latin America:
Argentina
Bahamas 2
Brazil
Chile
Colombia.
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other Latin American republics
Netherlands Antilles and Surinam
Other Latin America
Total
Asia:
China, People's Rep. of (China Mainland)
China, Republic of (Taiwan)
Hong Kong
India
Israel
Japan
Korea
Philippines
Thailand
Other
Total
Africa:
Egypt
Morocco
South Africa
Zaire
Other
Total
Other countries:
Australia
All other
Total
Total foreign countries
International and regional
Grand total
Mar. r
11
57
49
135
263
235
30
160
105
67
12
70
118
145
3
559
19
12
28
37
8
120
59
118
330
321
29
255
108
69
19
207
156
125
6
849
22
20
41
49
8
120
59
118
330
321
29
255
108
69
19
,207
164
125
6
967
22
20
41
49
2,114
2,911
3,037
1,627
1,897
1,914
305
262
435
139
380
13
934
125
176
41
268
374
18
26
379
476
649
52
418
13
1,202
244
145
40
383
388
14
36
379
476
469
52
418
13
1,202
244
145
40
383
388
14
36
3,494
4,437
109
70
21
41
129
4,280
348
138
172
252
May r
June r
12
94
69
141
389
399
19
326
109
65
19
387
234
245
9
999
12
29
56
73
July
Aug.
10
96
56
134
434
349
28
278
101
79
18
272
224
208
7
1,061
12
20
56
84
18
107
67
125
368
281
20
278
155
70
14
251
184
206
6
1,346
10
21
42
83
14
190
52
114
413
313
16
242
144
67
18
183
166
234
6
1,304
10
26
46
97
Sept.?
Oct.P
9
87
63
134
451
345
32
288
129
66
30
238
246
186
5
918
20
29
61
60
9
73
69
140
447
356
19
327
115
67
17
360
267
190
6
984
13
21
50
69
3,462
3,396
3,599
3,684
3,526
3,654
3,654
3,677
2,481
2,305
2,400
2,034
2,168
2,186
1,907
2,210
406
461
740
51
380
13
1,320
212
132
40
404
369
17
03
396
505
759
45
401
13
1,343
183
143
36
401
382
24
85
408
409
851
40
398
13
1,343
190
147
31
440
383
35
74
408
399
891
43
412
14
1,399
218
169
34
454
380
38
66
431
495
965
36
420
13
1,376
223
180
34
454
373
48
71
442
454
915
50
422
13
1,338
262
176
35
441
394
38
89
455
617
879
40
423
13
1,322
252
178
39
430
409
31
90
468
686
837
80
423
15
1,388
273
208
45
436
431
23
136
4,437
4,646
4,715
4,762
4,925
5,119
5,069
5,176
5,449
1
194
93
14
87
105
4,158
296
149
191
300
1
194
93
14
87
105
4,158
296
149
191
300
2
231
111
16
127
142
5,568
301
140
205
274
2
238
122
14
127
126
5,665
331
150
197
296
5
216
132
19
97
116
5,536
338
139
194
324
3
200
204
21
94
111
5,756
347
144
173
354
7
198
218
18
91
133
5,753
348
134
188
352
6
183
116
17
77
133
5,791
336
129
185
350
7
141
128
19
81
145
5,801
343
121
179
361
15
136
121
14
89
145
5,745
372
105
206
349
5,560
5,589
5,589
7,118
7,269
7,116
7,407
7,441
7,321
7,325
7,296
10
4
156
21
96
21
4
143
13
124
21
4
143
13
124
20
7
155
11
133
22
5
151
13
137
25
4
166
13
136
34
4
163
42
145
44
5
150
43
149
41
5
151
49
173
43
11
157
48
144
38
4
150
51
161
288
304
304
325
327
343
388
391
419
403
404
158
28
291
40
291
40
244
47
249
50
232
47
260
46
271
40
230
41
218
36
224
36
14
150
50
97
461
371
26
282
127
74
23
183
155
242
8
1,236
8
34
49
87
186
330
330
291
299
280
305
310
271
254
260
13,269
15,468
15,611
18,323
18,311
18,501
18,744
18,956
1,9821
18,719
19,295
3
3
3
1
2
2
1
2
1
1
1
15,471
15,614
18,324
18,312
18,502
18,745
18,957
18,922
18,720
19,297
13,272
1 Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in
coverage with those shown for the preceding date; figures in the second
column are comparable with those shown for the following date.
2 Includes Bermuda through Dec. 1972.
NOTE.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
9
100
60
131
424
371
29
269
118
70
20
282
243
152
5
1,032
18
22
54
52
Apr. r
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
D E C E M B E R 1973 • INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 83
14. S H O R T - T E R M CLAIMS O N FOREIGNERS R E P O R T E D BY BANKS
IN T H E U N I T E D S T A T E S , BY T Y P E
(Amounts outstanding; in millions of dollars)
Payable in foreign currencies
Payable in dollars
Loans to
End of period
Official
institutions
Banks1
Others
Collections
outstanding
Total
Total
Total
Acceptances
made
for acct.
of foreigners
Other
Total
Foreign
govt, seDeposits curities,
with for- coml.
eigners and finance
paper
1969
197 0
1971 2
9,680
10,802
13,170
13,272
9,165
10,192
12,328
12,377
3,278
3,051
4,503
3,969
262
119
223
231
1,943
1,720
2,613
2,080
1,073
1,212
1,667
1,658
2,015
2,389
2,475
2,475
3,202
3,985
4,243
4,254
670
766
1,107
1,679
516
610
842
895
352
352
549
548
89
92
119
173
1972—Oct...
Nov..
Dec. 3,
13,845
14,419
15,471
15,614
13,069
13,649
14,625
14,768
5,138
5,306
5,674
5,682
146
157
163
163
2,666
2,700
2,975
2,975
2,326
2,448
2,535
2,543
2,987
3,130
3,269
3,298
2,953
3,129
3,204
3,204
1,991
2,085
2,478
2,584
776
770
846
846
408
412
441
441
209
219
223
223
1973—Jan'..
Feb.'.r
Mar.
Apr. rr .
May ,
June r .
July r .
Aug..
Sep.?.
Oct.?.
15,172
17,973
18,324
18,312
18,502
18,745
18,957
18,922
18,720
19,297
14,347
16,902
17,374
17,494
17,649
17,907
18,095
18,036
17,943
18,436
5,437
6,460
6,534
6,842
6,931
7,285
7,015
6,964
6,815
6,998
142
162
141
146
163
205
162
176
151
206
2,814
3,674
3,683
3,931
3,812
4,037
3,916
4,021
3,912
3,994
2,480
2,624
2,711
2,765
2,956
3,043
2,936
2,767
2,752
2,798
3,280
3,608
3,751
3,834
3,844
3,901
3,891
3,967
4,088
4,119
3,103
3,283
3,464
3,464
3,602
3,963
3,899
3,694
3,697
3,755
2,527
3,551
3,624
3,354
3,271
2,758
3,290
3,411
3,344
3,563
825
1,071
951
819
854
838
862
886
777
861
443
596
524
460
499
552
561
488
459
510
253
313
262
207
237
140
151
151
143
187
"Other short-term claims"; and (b) a number of reporting banks are included
in 3the series for the first time.
Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date.
t Excludes central banks, which are included with "Official institutions."
2 Data on second line differ from those on first line because (a) those
claims of U.S. banks on their foreign branches and those claims of U.S.
agencies and branches of foreign banks on their head offices and foreign
branches, which were previously reported as "Loans", are included in
15. LONG-TERM CLAIMS O N FOREIGNERS R E P O R T E D BY B A N K S
IN T H E U N I T E D S T A T E S
(Amounts outstanding; in millions of dollars)
Country or area
Type
Payable in dollars
Total
Loans t
Other
longterm
claims
Payable
in
foreign
currencies
United
Kingdom
Other
Europe
Latin
Canada America
Japan
Other
Asia
Total
Official
institutions
Banksi
Other
foreigners
3,250
3,075
3,667
2,806
2,698
3,345
502
504
575
209
236
315
2,096
1,958
2,455
426
352
300
18
25
22
67
71
130
411
411
593
408
312
228
1,329
1,325
1,458
88
115
246
568
548
583
4,649
4,702
J4,954
\5,014
4,323
4,378
4,539
4,539
796
819
833
835
412
432
430
430
3,114
3,127
3,276
3,274
292
291
375
436
35
33
40
40
139
143
145
145
658
658
704
701
340
360
406
406
1,897
1,996
2,006
305
305
319
348
828
863
881
901
5,017
5,126
5,270
5,413
5,514
5,605
5,626
5,521
5,392
5,565
4,536
4,625
4,763
4,917
5,010
5,096
5,116
5,009
4,865
5,009
835
836
883
903
932
978
957
1,002
1,010
1,041
442
477
496
544
545
550
554
514
511
537
3,258
3,311
3,384
3,469
3,532
3,568
3,605
3,492
3,345
3,432
440
449
460
448
456
464
456
466
457
476
41
52
47
49
48
45
54
46
70
80
144
135
121
122
131
131
128
137
131
130
724
763
851
904
923
980
1,029
1,007
975
1,011
403
434
453
477
511
523
517
404
418
491
353
342
336
337
331
311
310
304
252
258
918
930
987
1,031
1,059
1,096
1,123
1,158
1,192
1,203
t Excludes central banks, which are included with "Official institutions."
2 Data on the two lines shown for this date differ because of changes in
reporting coverage. Figures on the first line are comparable in coverage
1,880
1,967
1,987
978
2,000
2,000
2,003
1,983
1,964
1,924
1,958
with those shown for the preceding date; figures on the second line are
comparable with those shown for the following date,
A 84
INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1973
16. PURCHASES A N D SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY T Y P E
(In millions of dollars)
U.S. corporate
securities 2
Marketable U.S. Treas. bonds and notes i
Foreign bonds
Foreign stocks
Net purchases or sales
Period
Total
1970
197 1
197 2
1973—Jan.-Oct.f
56
1,672
3,316
1,482
-25
130
57
-161
356
395
404
1972—Oc t
Nov
Dec
1973—Jan. 'r
Feb.
Mar
Apr
May
June
July
Aug
Sept.*
Oct.?
Intl.
and
regional
562
515
554
31
-48
-71
-79
-51
40
29
-12
10
-9
-33
-69
-71
17
20
-13
Total
Official
82
1,542
3,258
1,643
-41
1,661
3,281
1,692
356
395
404
340
377
403
562
527
544
40
-15
-1
-9
562
579
540
16
-68
-28
20
42
*
8
15
Net pur- Purchases or chases
sales
Purchases
Sales
123 11,426
- 1 1 9 14,573
- 2 3 19,073
- 4 9 15,251
9,844
13,158
15,015
10,672
1,582
1,415
4,058
4,579
Foreign
Sales
Net purchases or
sales
Purchases
Sales
1,490
1,687
1,901
1,216
2,441
2,621
2,961
1,927
-951
-935
-1,060
-711
1,033
1,385
2,532
1,414
998
1,439
2,123
1,232
35
-57
409
182
-53
-35
-222
188
192
233
119
110
178
69
82
55
161
194
211
121
137
123
107
117
115
129
158
145
114
112
125
111
107
125
105
131
3
49
97
9
12
12
Net purchases or
sales
Other
17
18
1
1,353
1,927
2,014
1,045
1,295
1,375
309
632
639
154
136
243
207
171
465
*
1,852
1,761
2,220
1,564
1,141
1,097
1,320
1,343
1,172
1,779
1,116
1,045
736
716
1,109
523
40
198
477
524
210
45
191
145
144
117
139
125
94
96
67
97
323
144
125
292
150
103
194
157
101
336
-52
3
23
-15
-1
-9
-39
12
27
1
Excludes nonmarketable U.S. Treasury bonds and notes issued to
official
institutions of foreign countries; see Table 12.
2
Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
1,111
1,040
1,101
899
843
819
962
1,735
-132
1
19
-175
- 1 1
22
-100
- 6 1
-34
-239
*
-8
10
-2
sold abroad by U.S. corporations organized to finance direct investments
abroad.
NOTE.—Statistics include transactions of international and regional
organizations.
17. N E T PURCHASES O R SALES BY FOREIGNERS OF U.S. C O R P O R A T E STOCKS, BY C O U N T R Y
(In millions of dollars)
Period
Purchases
Sales
1970
1971
1972
1973—Jan.-Oct.f
8,927
11,626
14,361
10,399
8,301
10,894
12,173
8,010
626
731
3,188
2,389
1972—Oct
Nov
Dec
1,005
1,560
1,464
846
1,070
1,114
1973—Jan. r
Feb.'.. . .
Mar
Apr
May
June
July
Aug
Sept.*
Oct.*
1,401
1,282
1,144
866
777
766
880
972
947
1,366
924
835
793
728
898
632
564
631
734
1,271
1
Net purchases or France
sales ( —)
Germany
Netherlands
58
87
372
303
195
131
-51
-34
128
219
297
253
159
490
350
65
85
48
6
44
-3
477
446
350
139
-121
134
316
341
213
94
32
25
35
21
-2
2
67
53
63
6
29
5
8
9
-43
-23
-19
1
6
-7
Includes international and regional organizations.
Switzerland
United
Kingdom
Other
Europe
Total
Europe
110
168
642
680
-33
-49
561
320
24
71
137
261
482
627
1,958
1,782
-9
-93
-78
125
47
37
-32
12
85
108
256
435
21
52
83
35
24
55
42
83
61
59
-89
150
132
19
53
19
109
449
297
8
13
-1
2
25
8
29
-8
42
11
12
4
46
67
47
-8
-14
7
25
60
18
5
143
150
148
53
-22
52
80
57
52
-34
108
82
21
-16
-39
15
28
40
15
66
21
42
29
46
3
21
28
34
14
24
380
371
288
105
-117
74
210
245
167
60
25
37
25
34
-7
8
19
10
-20
-11
5
-10
-16
-2
11
11
27
17
85
44
21
5
11
55
71
81
21
41
8
5
11
4
9
-2
5
-6
-3
4
Latin
Canada America
*
-26
Asia Other
D E C E M B E R 1973 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.
A 85
18. N E T P U R C H A S E S O R SALES BY F O R E I G N E R S O F U.S. C O R P O R A T E BONDS, BY C O U N T R Y
(In millions of dollars)
Period
Total
France
Germany
1970
1971
1972
956
684
1,871
35
15
336
48
35
77
1973—Jan.-Oct.p.
2,190
188
46
150
142
289
36
2
56
7
30
30
260
270
759
385
161
64
161
183
-2
-50
12
6
45
33
1
6
1972—Oct
Nov
Dec
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept.?
Oct.?
*
31
2
53
*
4
3
2
-4
-3
-2
46
Nether- Switzer- United
land Kingdom
lands
Other
Europe
Total
Europe
134
197
135
118
327
357
91
39
315
464
612
1,293
128
37
82
25
19
22
28
-2
323
217
165
436
1,031
70
25
35
-1
14
34
46
49
54
42
60
168
147
210
5
-6
8
29
30
-7
65
76
-3
13
-5
-1
21
49
46
-3
-96
120
-9
-15
72
14
-14
73
60
158
94
22
-2
7
10
12
1
161
149
174
98
215
-10
3
154
26
62
1
36
37
—1
74
-21
1
27
*
-2
2
-22
*
-1
*
*
1
*
*
*
1
NOTE.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
Latin
Canada America
*
16
7
7
3
-1
—1
4
Asia
Africa
Other Intl. and
countries regional
j
*
-12
-21
324
39
148
2
*
980
*
11
3
1
3
2
1
29
*
*
*
*
1
*
38
6
1
4
4
1
-1
3
4
1
1
31
110
623
199
2
*
*
*
*
*
*
60
-26
-42
68
-63
59
150
24
-39
-118
*
1
2
11
1
*
*
*
*
*
*
10
*
*
*
*
*
*
73
-28
*
debt securities sold abroad by U.S. corporations organized to finance direct investments abroad.
19. N E T P U R C H A S E S O R SALES BY F O R E I G N E R S OF
L O N G - T E R M F O R E I G N SECURITIES, BY A R E A
20. F O R E I G N C R E D I T A N D D E B I T
B A L A N C E S IN B R O K E R A G E A C C O U N T S
(In millions of dollars)
(Amounts outstanding; in millions of dollars)
Period
Total
Intl.
and
regional
Total
foreign
countries
Europe
Canada
Latin
America
Asia
Africa
Other
countries
1970
1971
1972
-915
-992
-651
-254
-310
-90
-662
-682
-561
50
31
492
-586
-275
-651
-11
-46
-69
-129
-366
-296
-6
-57
-66
20
32
29
1973—Jan.Oct.p...
-529
79
-608
-50
-478
-86
-30
1
35
1972—Oct
Nov
Dec
16
47
-167
16
11
9
*
36
-176
46
39
7
-73
-4
-158
2
8
-26
23
-8
-2
1973—Jan.''...
Feb.. . .
Mar
Apr.. . .
May.. .
June. . .
July....
Aug
Sept. 3 '..
Oct. 33 ...
-129
49
116
-166
-1
34
-100
-69
-25
-240
9
-2
23
16
11
7
3
5
4
4
-138
51
93
-182
-10
27
-103
-75
-28
-244
7
-3
24
22
-22
10
-14
-21
-28
-25
-67
41
34
-193
-13
6
-100
-44
8
-148
-70
-16
8
-6
6
13
-9
29
27
-5
6
-13
9
-8
—1
-64
*
-4
-8
-8
*
*
2
2
1
*
*
*
*
*
*
-1
1
*
*
*
1
*
1
*
14
9
3
3
2
1
End of
period
1970—Sept
Credit
balances
(due to
foreigners)
Debit
balances
(due from
foreigners)
291
349
203
281
511
419
333
311
314
300
320
314
325
312
286
372
379
339
336
405
310
316
290
364
243
255
NOTE.—Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.
Notes to Tables 21a and 21b on following pages:
1
Total assets and total liabilities payable in U.S. dollars amounted to
$15,439 million and $15,765 million, respectively, on July 31, 1973.
NOTE.—Components may not add to totals due to rounding.
For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent's equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.
INTL. CAPITAL TRANSACTIONS OF THE U.S. • DECEMBER 1973
21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions of dollars)
Claims on U.S.
Location and currency form
Month-end
Total
Total
IN ALL FOREIGN COUNTRIES
Total, all currencies
Payable in U.S. dollars.
IN UNITED KINGDOM
Total, all currencies
Payable in U.S. dollars.
IN THE BAHAMAS
Total, all currencies.
For notes see p. A-85.
Claims on foreigners
Parent
bank
Other
Total
1970—Dec..
1971—Dec..
47,363
61,334
9,740
4.798
7,248
2,311
2,491 36,221
2,486 54,752
1972—July.
Aug..
Sept..
Oct..,
Nov..
Dec..
69,963
72,856
74,906
74,796
76,241
80,034
4,058
4,504
4,952
4,967
4,456
4,735
1,514
1,759
2,243
2,239
1,824
2,124
2,544
2,745
2,709
2,728
2,632
2,611
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
81,200
87,989
91,646
90,987
92,994
98,756
103,667
4,926
4,327
4,296
3,917
4,218
4,955
5,403
2,327
1,565
1,988
1,672
1,926
2,333
2,505
2,600
2,762
2,308
2,244
2,292
2,622
2,898
1970—Dec..
1971—Dec..
34,619
40,182
9,452
4,541
7,233
2,305
2,219 24.642
2,236 35,064
1972—July.
Aug..
Sept..
Oct..
Nov..
Dec..
45,034
47,175
48,704
48,986
49,631
54,058
3,811
4,263
4,685
4,669
4,173
4,473
1,488
1,741
2,222
2,216
1,803
2,102
2,324
2,523
2.463
2,453
2,371
2,371
40,523
42,184
43,141
43,556
44,664
48,768
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
54,197
57,633
58.745
57,515
58,019
61,843
64,034
4,592
3.987
3.988
3,589
3,930
4,602
4.799
2,303
1,534
1,957
1,645
1,899
2,285
2,469
2,289
2,452
2,031
1,944
2.031
2,317
2,330
48,829
52,718
53,752
52,871
52,871
55,885
57,757
1970—Dec..
1971—Dec..
28,451
34,552
6,729
2,694
5,214
1,230
1972—July.,
Aug..
Sept..
Oct..
Nov..
Dec..
39,463
40,596
42,053
41,649
41,600
43,684
1,876
2,117
2,350
2,409
1,939
2,234
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
44,347
48,533
49,696
49,181
49,080
51,415
54.203
2,585
1,945
2,052
1,662
1,744
1,876
2,500
1970—Dec..
1971—Dec..
22,574
24,428
1972—July.
Aug..
Sept..
Oct..
Nov..
Dec..
Other
branches
of parent
bank
Other
banks
OffiNoncial
bank
instifortutions eigners
6,887 16,997
11,211 24,550
695 11,643
1,167 17,823
63,941
66,268
67,607
67,599
69,425
73,031
11,622
11,655
11,335
11,343
11,350
11,717
30,419
31,821
33,395
33,098
34,203
36,738
1,407
1,566
1,539
1,549
1,577
1,665
20,492
21,225
21,338
21,610
22,295
22,910
74,007
81,106
84,370
84,091
85,577
90,207
94,460
11,946
12,273
12,458
12,787
13,490
13,528
15,298
36,797
42,206
44,268
42,976
42,746
46,277
47,454
1,621
1,747
1,965
2,081
2,004
1,900
2,035
23,643
24,881
25,679
26,247
27,337
28,501
29,674
4,213 13,265
6,659 18,006
362
864
6,802
9,536
7,260
7,320
7.048
7,391
7,439
8,083
21,666
22,717
23,840
23,555
24,123
26,907
984
1,063
1,105
1,084
1,083
1,128
10,613
11,085
11,148
11,526
12,019
12,651
8,094
8,551
8,438
8,426
8,548
8,493
9,211
26,764
29,831
30,568
29,498
28,677
31,261
31,715
1,063
1,097
1,124
1,108
1,140
1,129
1,220
12,908
13,239
13,622
13,839
14,506
15,003
15,612
1,515 21,121
1.464 30,996
3,475 11,095
5,690 16,211
316
476
6,235
8,619
810
1,078
1,253
1,386
907
1,138
1,066
1,039
1,097
1,023
1.032
1.096
36,741
37,538
38,606
38,201
38.643
40,430
5,742
5,688
5,651
5,751
5,490
5,659
20,946
21,411
22,559
22,157
22,671
23,983
546 9,507
595 9,844
650 9,745
630 9,662
584 9,898
609 10,179
1,466
848
1,130
794
910
1,012
1,492
1,118
1.097
922
868
834
864
1,008
40,796
45,487
46.520
46,332
46.001
48,031
50,129
5,637
5,887
5,783
5,437
5,725
5,279
6,274
24,333
28,473
29,148
29,255
28,394
30,348
30,769
574
585
663
651
614
607
649
6,596
2,585
15,655
21.493
2,223
4,135
9,420
12,762
4,012
4,596
26,680
27,185
28.204
27,978
27,865
30,381
1,791
2,036
2,264
2,307
1,846
2,146
24.494
24,734
25,463
25,244
25,579
27,787
4,097
4,013
4,004
4,169
4.049
4,326
15,589
15,768
16,609
16,249
16,399
17,976
4,808
4,953
4,851
4,827
5,132
5,485
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
30.652
32.746
32,658
31,833
30,906
32,864
33,437
2,468
1,814
1,953
1,539
1,654
1,784
2,193
27,778
30,423
30,183
29,778
28,666
30,386
30.521
4,184
4,568
4,324
4,034
3,943
3,900
4,042
18,069
20,219
20,033
20,119
18,848
20,413
20,164
5,526
5,637
5,827
5,625
5,874
6,073
6,316
1970—Dec..
1971—Dec..
4,815
8,493
1,173
1,282
455
505
717
778
3,583
7,119
2,119
3,798
1,464
3,320
1972—July.
Aug..
Sept..
Oct..
Nov..
Dec..
10.329
11,515
11,914
12,017
12.330
13,091
1,409
1,530
1,612
1,739
1,586
1,496
110
118
221
251
221
225
1,298
1,413
1,391
1,489
1,365
1,272
8,786
9,846
10,150
10,120
10,577
11,419
4,924
5,682
5,929
5,836
6,209
6,965
3,863
4,164
4,221
4,284
4,368
4,454
1973—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
13,065
13,559
13,764
13.653
14,730
16,184
117,086
1,387
1,461
1,211
1,407
1,498
1,917
1,929
182
83
90
293
272
410
350
1,206
1,378
1,121
1,113
1,227
1,507
1,579
11,496
11,860
12,283
11,988
12, *
14.002
14,862
6,754
7,189
7,520
6,726
7,242
8,206
8,802
4,742
4,671
4,764
5,262
5,647
5,796
6,060
10,252
10,542
10,926
10,989
11,268
11,797
12,436
D E C E M B E R 1973 • INTL. C A P I T A L T R A N S A C T I O N S OF T H E U.S.
A 87
21b. LIABILITIES OF FOREIGN B R A N C H E S OF U.S. B A N K S
(In millions of dollars)
To U.S.
Month-end
Location and currency form
IN ALL FOREIGN COUNTRIES
. . . Total, all currencies
.Payable in U.S. dollars
IN UNITED KINGDOM
. . . Total, all currencies
.Payable in U.S. dollars
IN THE BAHAMAS
.Total, all currencies
For notes see p. A-85.
A 88
INTL. CAPITAL TRANSACTIONS OF THE U.S. • D E C E M B E R 1973
22. LIABILITIES OF U.S. BANKS T O T H E I R FOREIGN BRANCHES
A N D FOREIGN B R A N C H HOLDINGS OF SPECIAL U.S.
G O V E R N M E N T SECURITIES
23. M A T U R I T Y OF EURO-DOLLAR
DEPOSITS IN FOREIGN
BRANCHES OF U.S. BANKS
(Amounts outstanding; in millions of dollars)
(End of month; in billions of dollars)
Liabilities!
Wednesday
Liab.
plus
sec. 2
Wednesday
4,920
6,202
7,104
6,039
27
26
25
31 (1/1/69)
1969
Mar.
June
Sept.
Dec.
9,621
13,269
14,349
12,805
26
25
24
31
11,885
12,172
9,663
7,676
25
24
30
30
Jan. 2 6 . . .
Feb. 2 3 . . .
Mar. 2 9 . . .
1,419
1,068
1,532
Apr. 2 6 . . .
May 3 1 . . .
June 2 8 . . .
1,374
1,465
1,443
July 2 6 . . .
Aug. 3 0 . . .
Sept. 2 7 . . .
1,345
1,270
2,023
Oct. 2 5 . . .
Nov. 2 9 . . .
Dec. 2 7 . . .
1,415
1,745
1,406
Mar.
June
Sept.
Dec.
31
30
29
29
2,858
1,492
2,475
909
4,358
4,500
3,578
June
6...
13...
20...
27...
940
1,266
1,242
1,521
July
3...
11...
18...
25...
1,766
1,664
2,146
2,086
1...
8...
15...
22...
29...
2,226
2,276
1,900
2,440
2,793
5 ...
12. ..
19...
26...
1,512
1,942
1,801
1,731
Oct.
3...
10'..
17r..
24 r . .
31 r . .
1,695
1,790
1,814
1,642
1,702
Nov.
7...
14...
21...
28...
1,693
1,826
2,428
2,412
Aug.
Sept.
Jan. 3 1 . . .
Feb. 2 8 . . .
Mar. 2 8 . . .
1,413
790
1,127
Apr.
4. . .
11...
18. . .
25...
1,011
1,203
1,193
1,123
May
2...
9...
16...
23...
30...
1,238
1,073
1,721
1,492
1,351
1971
1973
Liabilities 1
Maturity of
liability
June
July
Aug.
2.57
3.04
3.19
3.16
2.45
2.55
15.47 13.38
8.14
7.61
6.55
7.49
4.20
3.96
3.45
3.67
3.55
3.08
.54
.89
.82
.98
.72
.96
.38
.54
.34
.36
.76
.32
13.56
8.90
6.89
3.89
3.73
3.56
1.02
.74
.53
.36
.82
.66
1973
1973
1970
Mar.
June
Sept.
Dec.
Wednesday
1972
1968
Mar.
June
Sept.
Dec.
Liabilities 1
Call
Other liabilities, maturing
in following calendar
months after report
date:
2nd
7th
8th
Maturities of more than 1
Total
1.92
1.88
1.89
51.27
52.50
51.54
NOTE.—Includes interest-bearing U.S. dollar
deposits and direct borrowings of all branches in
the Bahamas and of all other foreign branches
for which such deposits and direct borrowings
amount to $50 million or more.
Details may not add to totals due to rounding.
1
Represents gross liabilities of reporting banks to their branches in foreign countries.
2
For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Eurodollar Series and special Export-Import Bank securities held by foreign branches. Beginning
July 28, 1971, all of the securities held were U.S. Treasury Certificates Eurodollar Series.
24. DEPOSITS, U.S. TREAS. SECURITIES,
A N D G O L D H E L D A T F.R. BANKS FOR
FOREIGN OFFICIAL A C C O U N T
25. S H O R T - T E R M LIQUID CLAIMS O N FOREIGNERS
R E P O R T E D BY N O N B A N K I N G C O N C E R N S
(Amounts outstanding; in millions of dollars)
(In millions of dollars)
Payable in
Payable in dollars foreign currencies
Assets in custody
End of
period
End of
period
Deposits
U.S. Treas.
securities 1
Earmarked
gold
12,926
13,815
1970
1971
148
294
16,226
43,195
1972—Nov...
Dec.. .
188
325
51,874
50,934
1973—Jan....
Feb. . .
Mar...
Apr...
May, .
June..
July...
Aug...
Sept...
Oct....
Nov...
310
455
327
328
289
334
280
259
250
426
420
50,118
56,914
359,389
358,255
58,015
57,545
57,054
55,855
55,407
54,766
52,998
2
15,530
15,530
15,526
15,522
15,519
15,513
15,511
15,486
15,464
15,455
15,437
417,122
17,104
1
Marketable U.S. Treasury bills, certificates of indebtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2
Increase reflects principally change in par value of the
U.S. dollar in May 1972.
3
Includes $15 million increase in Mar. and $160 million
increase in Apr. in dollar value of foreign currency obligations revalued to reflect market exchange rates.
4
Increase reflects change in par value of the U.S.
dollar in Oct. 1973.
NOTE.—Excludes deposits and U.S. Treas. securities
held for international and regional organizations. Earmarked gold is gold held for foreign and international
accounts and is not included in the gold stock of the
United States.
Total
Deposits
1968
1Q£Q 2
Shortterm
invest-1 Deposits
ments
Shortterm
invest-1
ments
United
Kingdom
Canada
1970
1,638
/1,319
\1,491
1,141
1,219
952
1,062
697
87
116
161
150
272
174
183
173
60
76
86
121
979
610
663
372
280
469
534
443
1Q7I
ly /1 — T\
u e0«c .2' . . .
f1,648
\1,507
1,092
1,078
203
127
234
234
120
68
577
580
587
443
1972—Sept , , ,
Oct
Nov
_ 60 2
2,101
2,033
2,058
f1,965
\2,219
1,527
1,472
1,493
1,446
1,758
170
171
167
169
55
359
332
343
307
338
45
57
55
42
68
685
681
635
702
868
604
551
587
485
506
2,369
2,901
2,963
2,938
3,063
3,109
3,153
3,238
3,052
1,861
2,155
2,191
2,175
2,309
2,457
2,387
2,477
2,403
74
149
139
110
113
67
118
65
67
342
373
408
414
430
451
473
481
413
93
225
225
238
211
134
175
214
169
915
1,010
1,093
1,033
996
1,054
1,060
1,059
1,029
655
1,042
914
840
940
835
898
874
830
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
1
Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2
Data on the two lines for this date differ because of changes in reporting coverage.
Figures on the first line are comparable in coverage with those shown for the preceding
date; figures on the second line are comparable with those shown for the following date.
NOTE.—Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Tables 26 and 27.
D E C E M B E R 1973 • I N T L . C A P I T A L T R A N S A C T I O N S O F T H E U . S .
A 89
26. S H O R T - T E R M LIABILITIES T O A N D CLAIMS O N F O R E I G N E R S R E P O R T E D BY N O N B A N K I N G C O N C E R N S
(End of period. Amounts outstanding; in millions of dollars)
Liability to foreigners
Area and country
Claims on foreigners
1972
Sept.
1972
1973
Dec. i
Mar.
Junef
Sept.
1973
Dec.
1
Mar.
June*5
Europe:
Belgium-Luxembourg
Denmark
France
Germany, Fed, Rep. of
Greece
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom
Yugoslavia
Other Western Europe
Eastern Europe
Total
2
82
5
3
145
130
14
108
79
5
3
63
14
119
2
943
5
2
9
2
75
9
4
163
145
24
118
102
9
4
79
12
122
3
949
7
2
3
2
83
7
4
167
156
15
121
109
14
4
81
12
106
4
1,009
7
2
3
3
75
8
4
161
146
19
107
100
14
5
82
22
127
3
857
16
2
6
2
81
19
4
165
165
24
103
110
13
4
72
23
85
3
702
17
3
21
15
63
19
16
188
200
30
174
71
19
20
130
45
57
8
992
11
11
47
20
62
28
23
220
176
39
194
78
17
21
137
56
79
47
1,044
12
14
42
19
73
29
25
230
194
35
202
83
16
19
157
57
82
47
1,155
12
12
42
14
106
26
21
290
242
36
204
96
17
19
159
45
85
23
1,385
14
9
40
17
93
20
21
318
270
40
199
97
19
25
140
49
89
15
1,360
18
9
91
1,733
1,830
1,905
1,758
1,617
2,117
2,309
2,489
2,831
2,890
Canada
183
209
211
267
246
996
899
930
1,308
1,256
Latin America:
Argentina
Brazil
Chile
Colombia
Cuba
Mexico
Panama
Peru
Uruguay
Venezuela
Other L.A. republics
Bahamas 2
Neth. Antilles and Surinam.
Other Latin America
16
24
17
6
I
21
5
5
2
17
30
293
9
6
19
35
18
8
1
27
8
5
6
17
35
319
10
7
29
35
18
7
30
42
17
8
24
47
13
7
27
18
4
7
21
45
366
10
4
34
17
4
5
23
46
288
10
8
38
18
6
3
23
47
382
11
19
52
163
33
39
1
154
20
36
7
74
96
519
11
23
59
175
33
41
1
180
19
40
4
89
91
520
12
23
78
168
34
40
1
183
67
36
4
92
94
547
13
35
74
170
31
40
1
195
72
33
5
106
95
534
12
44
62
176
29
36
1
205
72
34
5
99
101
740
11
91
453
514
589
532
638
1,226
1,289
1,390
1,410
1,661
28
26
12
7
6
11
223
16
5
5
112
32
28
12
7
12
12
149
20
15
5
117
32
26
12
7
16
13
160
20
15
5
152
32
33
12
7
16
16
194
19
25
5
156
31
35
12
7
15
9
234
18
19
6
140
1
51
22
36
32
18
452
57
63
14
171
*
*
67
24
33
33
31
456
63
49
15
201
65
32
34
33
31
467
63
48
22
203
1
61
31
31
38
34
509
47
47
25
188
10
76
34
28
35
27
500
40
47
24
203
451
410
458
513
525
918
972
999
1,012
1,024
1
17
2
37
25
7
1
59
32
8
1
61
37
6
12
66
20
6
12
67
7
45
7
64
7
53
5
75
16
52
8
79
25
55
16
78
23
52
15
84
57
92
103
121
105
122
140
155
173
174
46
11
47
13
46
13
54
11
72
11
92
18
94
20
84
21
82
22
77
23
57
100
Total
Asia:
China, People's Republic
of (China Mainland)
China, Rep. of (Taiwan)
India
Indonesia
Israel
Japan
Korea
Philippines
Thailand
Other Asia
Total
Africa:
Egypt
South Africa
Zaire
Other Africa
Total
Other countries:
Australia
All other
Total
International and regional. . . .
Grand total
*
60
59
64
82
110
114
105
104
*
*
*
*
*
5
1
1
1
1
2,933
3,115
3,324
3,256
3,213
5,495
5,723
6,068
6,839
7,106
1
Data in the two columns shown for this date differ because of changes
in reporting coverage. Figures in the first column are comparable in
coverage with those shown for the preceding date; figures in the second
column are comparable with those shown for the following date.
2
Includes Bermuda.
*
NOTE.—Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.
A 90
INTL. CAPITAL TRANSACTIONS OF THE U.S. • D E C E M B E R 1973
27. S H O R T - T E R M LIABILITIES T O A N D CLAIMS O N FOREIGNERS R E P O R T E D BY
N O N B A N K I N G CONCERNS, BY T Y P E
(Amounts outstanding; in millions of dollars)
Claims
Liabilities
Payable in foreign
currencies
End of period
Total
Payable
in
dollars
Payable
in
foreign
currencies
Payable
in
dollars
Total
Deposits with
banks abroad
in reporter's
name
Other
1,613
1,797
1,786
2,124
1,263
1,450
1,399
1,654
350
346
387
471
4,023
3,874
3,710
4.159
3,316
3,222
3,124
3,532
429
386
221
244
278
267
365
383
1970—June.,
Sept..
Dec...
2,387
2,512
2,677
1,843
1,956
2,281
543
557
496
4,457
4,361
4.160
3,868
3,756
3,579
234
301
234
355
305
348
1971—Mar..
June..
Sept..
Dec. 1
/
I
2,437
2,375
2,564
2,704
2,763
1,975
1,937
2,109
2,229
2,301
462
438
454
475
463
4,515
4,708
4,894
5,185
5,004
3,909
4,057
4,186
4,535
4,467
232
303
383
318
290
374
348
326
333
247
J
\
2,844
2,925
2,933
3,115
3,324
2,407
2,452
2,435
2,630
2,825
437
472
498
484
499
5,177
5,331
5,495
5,723
6,068
4,557
4,685
4,833
5,074
5,394
318
376
432
411
393
302
270
230
238
281
3,256
3,213
2,743
2,652
513
561
6,839
7,106
5,945
6,249
458
502
436
355
1969—June.,
Sept..
Dec.1
1972—Mar..
June.,
Sept..
Dec. 1
1973—Mar..
June?
/
\
i Data on the two lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the
preceding date; figures on the second line are comparable with those shown for the following date.
2 8 . LONG-TERM LIABILITIES T O A N D CLAIMS O N F O R E I G N E R S R E P O R T E D BY N O N B A N K I N G C O N C E R N S
(Amounts outstanding; in millions of dollars)
Claims
End of period
Country or area
Total
liabilities
Total
United
Kingdom
Other
Europe
Canada
Mexico
Other
Latin
America
Japan
Other
Asia
Africa
All
other
1969—June..
Sept..
Dec. i
1,325
1,418
1,725
2,304
1,952
1,965
2,215
2,363
168
167
152
152
368
369
433
442
447
465
496
562
195
179
172
177
76
70
73
77
216
213
388
420
142
143
141
142
229
246
249
271
72
71
69
75
40
42
42
46
1970— Mar..
June..
Sept..
Dec...
2,358
2,587
2,785
3,102
2,744
2,757
2,885
2,950
159
161
157
146
735
712
720
708
573
580
620
669
181
177
180
183
74
65
63
60
458
477
586
618
158
166
144
140
288
288
284
292
71
76
73
71
47
54
58
64
1971—Mar...
June..
Sept...
Dec. 1
3,177
3,172
2,939
3,159
3,138
2,983
2,982
3,019
3,118
3,118
154
151
135
128
128
688
687
672
705
705
670
677
765
761
767
182
180
178
174
174
63
63
60
60
60
615
625
597
652
653
161
138
133
141
136
302
312
319
327
325
77
75
85
86
86
72
74
75
85
84
1972—Mar...
June..
Sept..,
Dec. 1
3,093
3,300
3,448
3,540
3,858
3,191
3,255
3,235
3,369
3,472
129
108
128
162
179
713
713
695
715
755
787
797
805
833
870
175
188
177
184
187
60
61
63
60
63
665
671
661
659
698
137
161
132
156
134
359
377
389
406
394
81
86
89
87
80
85
93
96
109
111
1973—Mar..,
June*.
3,988
3,963
3,604
3,662
144
157
808
819
884
894
165
146
62
64
783
797
124
138
409
412
102
105
125
131
1
Data on the two lines shown for this date differ because of changes
in reporting coverage. Figures on the first line are comparable with those
shown for the preceding date; figures on the second line are comparable
with those shown for the following date.
D E C E M B E R 1973 a E X C H A N G E R A T E S
A 91
FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Australia
(dollar)
Austria
(schilling)
Belgium
(franc)
Canada
(dollar)
Ceylon
(rupee)
Denmark
(krone)
Finland
(markka)
France
(franc)
111.25
111.10
111.36
113.61
119.23
3.8675
3.8654
3.8659
4.0009
4.3228
2.0026
1.9942
2.0139
2.0598
2.2716
92.801
92.855
95.802
99.021
100.937
16.678
16.741
16.774
16.800
16.057
13.362
13.299
13.334
13.508
14.384
23.761
23.774
23.742
23.758
24.022
20.191
19.302
18.087
18.148
19.825
1972—Nov
Dec
119.09
120.74
4.3064
4.3172
2.2685
2.2670
101.279
100.326
15.026
14.936
14.510
14.601
24.022
24.000
19.839
19.657
1973
127.16
135.46
141.29
141.50
141.50
141.58
141.78
141.48
146.83
148.22
148.22
4.3203
4.8582
4.8759
4.8330
4.9082
5.2408
5.8124
5.5917
5.5695
5.5871
5.2670
2.2665
2.3981
2.5378
2.4895
2.5356
2.6643
2.8151
2.7035
2.7089
2.7328
2.5882
100.071
100.440
100.333
99.928
99.916
100.160
100.049
99.605
99.181
99.891
100.092
14.904
15.407
15.774
15.777
15.883
16.538
16.431
15.948
15.768
15.481
15.503
14.536
15.386
16.275
16.099
16.241
17.130
18.041
17.521
17.480
17.692
16.744
23.986
24.728
25.628
25.872
25.277
26.731
27.202
27.314
27.042
27.202
26.894
19.671
20.987
22.191
21.959
22.341
23.472
24.655
23.527
23.466
23.718
22.687
Germany
(Deutsche
mark)
India
(rupee)
Ireland
(pound)
Italy
(lira)
Japan
(yen)
Malaysia
(dollar)
Mexico
(peso)
Netherlands
(guilder)
25.048
25.491
27.424
28.768
31.364
13.269
13.230
13.233
13.338
13.246
239.35
239.01
239.59
244.42
250.08
.16042
.15940
.15945
.16174
.17132
.27735
.27903
.27921
.28779
.32995
32.591
32.623
32.396
32.989
35.610
8.0056
8.0056
8.0056
8.0056
8.0000
27.626
27.592
27.651
28.650
31.153
1972—Nov
Dec
31.215
31.262
12.540
12.467
235.05
234.48
.17109
.17146
.33224
.33196
36.124
35.531
8.0000
8.0000
30.964
30.962
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
31.288
33.273
35.548
35.252
35.841
38.786
42.821
41.219
41.246
41.428
38.764
12.494
12.910
13.260
13.255
13.340
13.753
13.605
13.220
12.987
12.938
12.767
235.62
242.75
247.24
248.37
253.05
257.62
253.75
247.57
241.83
242.92
238.70
.17079
.17421
.17604
.16971
.17100
.16792
.17200
.17423
.17691
.17656
.16904
.33136
.36041
.38190
.37666
.37786
.37808
.37801
.37704
.37668
.37547
.35941
35.523
37.679
39.922
40.307
40.333
40.865
43.121
43.859
43.361
43.641
41.838
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
31.084
33.119
34.334
33.890
34.488
36.582
38.700
37.596
38.542
40.011
37.267
New
Zealand
(dollar)
Norway
(krone)
Portugal
(escudo)
South
Africa
(rand)
Spain
(peseta)
Sweden
(krona)
Switzerland
(franc)
United
Kingdom
(pound)
1972
111.37
111.21
111.48
113.71
119.35
14.000
13.997
13.992
14.205
15.180
3.4864
3.5013
3.4978
3.5456
3.7023
139.10
138.90
139.24
140.29
129.43
1.4272
1.4266
1.4280
1.4383
1.5559
19.349
19.342
19.282
19.592
21.022
23.169
23.186
23.199
24.325
26.193
239.35
239.01
239.59
244.42
250.08
1972—Nov
Dec
119.45
119.53
15.144
15.187
3.7140
3.7248
127.52
127.57
1.5753
1.5753
21.076
21.080
26.346
26.526
235.05
234.48
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
119.52
126.87
132.21
132.99
132.34
132.40
135.02
135.33
145.07
148.64
147.74
15.128
16.038
16.954
16.428
17.196
18.192
18.932
18.145
18.048
18.285
17.872
3.7280
3.8562
4.1005
3.9563
4.0050
4.2175
4.4624
4.3243
4.2784
4.3014
4.1155
127.55
134.91
141.43
141.70
141.65
148.07
148.63
148.52
148.50
148.54
148.45
1.5755
1.6355
1.7183
1.7217
1.7224
1.7229
1.7385
1.7553
1.7610
1.7576
1.7479
21.092
21.935
22.582
22.161
22.567
23.746
24.732
24.070
23.769
23.942
23.019
26.820
29.326
31.084
30.821
31.494
32.757
35.428
33.656
33.146
33.019
31.604
235.62
242.75
247.24
248.37
253.05
257.62
253.75
247.57
241.83
242.92
238.70
Period
Jan
Feb
Mar
Apr
May
July
Sept
Oct
Nov
Period
1971
Period
1969
1970
NOTE.—Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see "International Finance," Section 15 of Supplement to Banking and Monetary Statistics, 1962.
CENTRAL BANK RATES • DECEMBER 1973
A 92
C E N T R A L BANK RATES FOR DISCOUNTS A N D A D V A N C E S T O COMMERCIAL BANKS
(Per cent per annum)
Changes during the last 12 months
Rate as of
Nov. 30, 1972
1972
Country
Per
cent
Month
effective
Argentina
Austria
Belgium
Brazil
Canada
18.0
5.5
4.5
18.0
4.75
Feb.
Nov.
Nov.
Feb.
Oct.
1972
1972
1972
1972
1971
Ceylon
Chile
China, Rep. of (Taiwan).
Colombia
Costa Rica
6.5
7.0
9.25
14.0
5.0
Jan.
Jan.
May
May
June
1970
1972
1971
1970
1966
Denmark
Ecuador
Egypt
El Salvador
Ethiopia
7.0
8.0
5.0
4.0
6.50
Oct.
Jan.
May
Aug.
Aug.
1972
1970
1962
1964
1970
Finland
France
Germany, Fed. Rep. o f . .
Ghana
Greece
7.75
7.5
4.5
8.0
6.5
Jan.
Nov.
Nov.
July
Sept.
1972
1972
1972
1971
1969
Honduras
Iceland
India
Indonesia
Iran
4.0
5.25
6.0
6.0
7.0
Feb.
Jan.
Jan.
May
Oct.
1966
1966
1971
1969
1969
7.44
4.0
6.0
4.25
13.0
Oct.
Apr.
June
June
Jan.
1972
1972
1972
1972
1972
4.5
3.50
4.0
6.0
4.50
June
Nov.
Nov.
Mar.
June
1942
1951
1972
1972
1968
4.5
6.0
9.5
10.0
3.75
Sept.
May
Nov.
June
Feb.
1969
1972
1959
1969
1971
6.0
5.0
5.0
3.75
5.0
Aug.
Oct.
Nov.
Sept.
Oct.
1972
1971
1971
1969
1959
Sept.
Sept.
Oct.
Oct.
Sept.
1966
1970
1972
1970
1970
Ireland
Italy
Jamaica
Japan
Korea
Mexico
Morocco
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Peru
Philippine Republic
Portugal
South Africa
Spain
Sweden
Switzerland
Thailand
Tunisia
Turkey
United Kingdom
Venezueia
Vietnam
5.0
9.0
7.5
5.0
18.0
Dec.
Jan.
Feb.
Mar.
Apr.
5.0
May
June
5.50
5.25
5.75
July
Aug.
6.0
6.0
6.5
6.25
Sept.
Oct.
Nov.
7.75
18.0
6.0
7.75
18.0
6.75
10.75
6.5
7.0
10.75
8.0
5.0
6.75
io.5
8.0
9.25
8.50
6.0
5.0
8.0
8.0
5.0
4.0
6.50
9.5
9.25
11.0
7.0
8.0
6.5
11.0
7.0
4.0
5.25
7.0
6.0
7.0
7.0
7.0
5.0
5.5
5.0
6.0
7.0
6.0
6.5
7.44
4.0
7.0
7.0
13.0
4.5
3.50
7.0
6.0
4.50
7.0
4.5
8.0
9.5
10.0
4.0
8.0
5.5
4.0
5.5
6.0
5.0
4.50
5.0
6.0
4.50
9.0
8.75
NOTE.—Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
govt, securities for commercial banks or brokers. For countries with
more than one rate applicable to such 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. Other rates for some
of these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, depending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;
Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent
for loans to make up reserve deficiencies.
Colombia—5 per cent for warehouse receipts covering approved lists of
products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent
for rediscounts in excess of an individual bank's quota;
Costa Rica—5 per cent for paper related to commercial transactions
(rate shown is for agricultural and industrial paper);
Ecuador—5 per cent for special advances and for bank acceptances for
agricultural purposes, 7 per cent for bank acceptances for industrial
purposes, and 10 per cent for advances to cover shortages in legal reserves;
Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills.
Honduras—Rate shown is for advances only.
Indonesia—Various rates depending on type of paper, collateral, commodity involved, etc.;
Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess of an individual bank's quota;
Rate
as of
Nov. 30,
1973
1973
8.0
8.5
7.75
7.50
11.50
8.75
5.0
8.75
til.50
5.0
18.0
Morocco—Various rates from 3 per cent to 4.6 per cent depending on type
of paper, maturity, collateral, guarantee, etc.
Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish production, import substitution industries and manufacture of exports; 8 per
cent for other agricultural, industrial and mining paper;
Philippines—6 per cent for financing the production, importation, and distribution of rice and corn and 7.75 per cent for credits to enterprises engaged in export activities. Preferential rates are also granted on credits to
rural banks; and
f United Kingdom—On Oct. 9, 1972, the Bank of England announced:
"With effect from Friday October 13th the Bank's minimum lending rate
will until further notice be the average rate of discount for Treasury bills
established at the most recent tender plus one half percent rounded to the
nearest one quarter percent above. Although the rate will therefore be
automatically determined by this formula it will for convenience be made
known each Friday afternoon concurrently with and in the same manner
as the results of the Treasury bill tender. The regular weekly bank rate
announcement will be discontinued from now on." Therefore, the minimum lending rate as of last Friday of the month will be carried in place o f
Bank rate.
Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi
per cent for advances against government bonds, and 5Vi per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.
Vietnam—10 per cent for export paper; treasury bonds are rediscounted
at a rate 4 percentage points above the rate carried by the bond; and
there is a penalty rate of 24 per cent for banks whose loans exceed quantitative ceilings.
D E C E M B E R 1973 • O P E N M A R K E T R A T E S ; A R B I T R A G E
A 93
OPEN MARKET RATES
(Per cent per annum)
Month
Day-today
moneys
Treasury
bills,
60-90
days 6
Day-today
money 7
Treasury
bills,
3 months
Day-today
money
Private
discount
rate
5.57
5.02
4.93
4.83
3.84
3.84
5.84
4.54
3.04
6.10
4.30
4.34
2.15
3.76
1.97
5.24
4.81
7.28
8.08
6.88
7.76
5.70
6.23
5.25
5.57
6.33
7.32
3.75
4.25
5.71
6.69
3.13
3.12
3.31
3.20
4.75
4.75
8.76
9.34
9.76
8.64
8.35
8.14
9.06
12.78
12.12
11.37
13.38
8.49
8.14
8.16
7.87
7.45
7.12
8.35
10.98
11.37
10.75
11.76
7.66
8.31
7.52
7.20
8.29
6.66
5.89
9.70
9.13
10.53
8.80
6.55
7.30
7.50
7.25
7.11
6.55
6.25
8.99
9.50
9.50
9.50
7.23
7.71
7.49
7.46
7.71
7.46
8.50
9.15
10.22
11.13
11.08
4.75
5.75
5.75
5.75
5.75
7.00
5.58
2.18
11.37
14.84
7.40
10.90
15.78
10.63
9.76
10.57
3.16
2.33
1.53
1.22
2.89
3.59
5.58
5.92
5.67
5.25
2.78
1.55
.61
.77
3.88
4.28
5.65
7.24
7.97
7.93
5.00
5.00
5.00
5.00
5.00
5.00
5.00
5.25
197 1
197 2
3.62
3.55
3.76
3.65
6.41
6.06
1972—No v
Dec
3.61
3.66
3.71
3.71
1973—Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.
Nov . . . .
3.79
3.91
4.28
4.73
5.08
5.40
5.67
6.47
6.41
6.56
6.48
3.72
3.93
4.21
4.53
4.67
5.00
5.28
5.87
6.31
6.54
6.56
1 Based on
Based on
Data for
months.
4
Data for
deposits.
Switzerland
Clearing
banks'
deposit
rates 4
Day-today
money 2
3
Netherlands
Day-today
money
Prime
Treasury
bank
bills,
bills,
3 months
3 months 3
Treasury
bills,
3 months i
2
Germany,
Fed. Rep. of
France
United Kingdom
Canada
average yield of weekly tenders during month.
weekly averages of daily closing rates.
1968 through Sept. 1971 are for bankers' acceptances, 3
1968 through Sept. 1971 are for bankers' allowance on
5 Rate shown is on private securities.
Rate in effect at end of month.
7
Monthly averages based on daily quotations.
8
Bill rates in table are buying rates for prime paper.
NOTE.—For description and back data, see "International Finance,"
Section 15 of Supplement to Banking and Monetary Statistics, 1962.
6
A R B I T R A G E O N T R E A S U R Y BILLS
(Per cent per annum)
United States and United Kingdom
United States and Canada
Treasury bill rates
Date
Treasury bill rates
United
Kingdom
(adj. to
U.S.
quotation
basis)
United
States
Spread
(favor
of
London)
Premium
( + ) or
discount
( —) on
forward
pound
Net
incentive
(favor
of
London)
Carlada
As
quoted
in
Canada
Adj. to
U.S.
quotation
basis
United
States
Spread
(favor
of
Canada)
Premium
( + ) or
discount
(—) on
forward
Canadian
dollars
Net
incentive
(favor
of
Canada)
1973
June
1
8
15
22
29
7.06
7.06
6.93
,6.90
6.86
6.87
7.02
7.07
7.16
7.29
.19
.04
-.14
-.26
-.43
-1.43
-1.41
-1.38
-1.40
-1.68
-1.24
-1.37
-1.52
-1.66
-2.11
5.19
5.25
5.44
5.46
5.48
5.07
5.11
5.29
5.31
5.33
6.87
7.02
7.07
7.16
7.29
-1.80
-1.91
-1.78
-1.85
-1.96
1.12
1.38
1.48
1.60
1.58
-.68
-.53
-.30
-.25
-.38
July
6
13
20
27
6.76
6.85
8.26
10.74
7.87
7.59
8.05
8.15
-1.11
-.74
.21
2.59
-2.36
-2.22
-2.13
-3.55
-3.47
-2.96
-1.92
-.96
5.62
5.62
5.71
5.74
5.47
5.47
5.55
5.59
7.87
7.59
8.05
8.15
-2.40
-2.12
-2.50
-2.56
1.70
1.68
2.27
2.48
-.70
-.44
-.23
-.08
Aug.
3
10
17
24
31
10.63
10.76
10.78
10.83
10.82
8.18
8.76
8.47
8.45
8.53
2.45
2.00
2.31
2.38
2.29
-2.97
-4.60
-4.55
-4.88
-4.45
-.52
-2.60
-2.24
-2.50
-2.16
5.82
5.99
6.05
6.12
8.38
5.66
5.82
5.82
5.95
6.00
8.18
8.76
8.47
8-45
8.53
-2.52
-2.94
-2.65
-2.50
-2.53
2.64
2.88
2.69
2.64
2.58
.12
-.06
.04
.14
.05
Sept.,
7
14
21
28
10.84
10.80
10.83
10.79
8.77
8.75
8.00
6.94
2.07
2.05
2.83
3.85
-4.55
-5.49
-4.84
-4.52
-2.48
-3.44
-2.01
-.67
6.22
6.42
6.48
6.50
6.04
6.25
6.26
6.29
8.77
8.75
8.00
6.94
-2.73
-2.50
-1.74
-0.65
2.26
2.06
1.89
1.37
-.47
-.44
.15
.72
Oct.
5
12
19
26
10.74
10.67
10.56
10.54
7.36
7.08
6.98
6.99
3.38
3.59
3.58
3.55
-3.73
-3.56
-3.68
-4.08
-.35
.03
-.10
-.53
6.68
6.51
6.53
6.51
6.26
6.29
6.30
6.30
7.36
7.08
6.98
6.99
-1.11
-.79
-.68
-.69
1.41
.46
.08
-.70
.30
-.33
-.60
-1.39
Nov.,
2
9
16
23
30
10.46
10.57
12.24
12.31
12.28
7.39
8.01
7.51
7.74
7.32
3.07
2.56
4.73
4.57
4.76
-3.79
-3.54
-5.11
-5.92
-5.50
-.72
-.98
-.38
-1.35
-.54
6.53
6.52
6.47
6.47
6.43
6.30
6.33
6.25
6.23
6.22
7.39
8.01
7.51
7.74
7.32
-1.09
— 1.68
-1.26
-1.51
-1.10
-.28
-.06
.18
.22
.30
-1.37
-1.74
-1.08
-1.29
-.80
NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills.
U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K.
rates are Friday opening market offer rates in London.
Premium or discount on forward pound and on forward Canadian dollar:
Rates per annum computed on basis of midpoint quotations (between
bid and offer) at 11 a.m. Friday in New York for both spot and forward
pound sterling and for both spot and forward Canadian dollars.
All series: Based on quotations reported to F.R. Bank of New York
by market sources.
For description of series and for back figures, see Oct. 1964 BULLETIN,
pp. 1241-60. For description of adjustments to U.K. and Canadian
Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260,
O c t . 1 9 6 4 BULLETIN.
GOLD RESERVES • D E C E M B E R 1973
A 94
G O L D RESERVES OF C E N T R A L BANKS A N D G O V E R N M E N T S
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
Estimated
total
world i
Intl.
Monetary
Fund
United
States
Estimated
rest of
world
Algeria
Argentina
243,230
43,185
41,600
40,905
41,015
41,275
r
41,160
31,869
2,652
2,682
2,288
2,310
4,339
4,732
13,806
13,235
12,065
10,892
11,859
11,072
10,206
27,285
27,300
26,855
27,725
26,845
25,865
r
26,220
6
6
155
205
205
191
192
66
84
84
109
135
140
90
223
224
231
257
263
239
259
700
701
701
714
715
714
729
'44,890
5.777
5.778
5,830
10,487
10,487
10,487
28,575
208
208
208
152
152
152
282
282
281
5,830
5,830
5,830
5.830
5,826
5.831
5,826
5,826
5,826
6,474
10,487
10,487
10,487 p 28,565
10,487
10,487
10,487
28,545
10,487
10,487
10,487 ^28j 580
11,652
208
208
208
208
208
208
208
208
208
231
152
152
152
152
152
152
Finland
'44,880
44,865
'P44,$95
End of
period
China,
Rep. of
(Taiwan)
Colombia
Denmark
r
Egypt
Australia
Austria
Belgium
Brazil
Burma
Canada
1,558
1,525
1,480
1,524
1,520
1,470
1,544
63
45
45
45
45
45
46
84
84
84
84
84
63
22
1,151
1,046
1,015
863
872
791
792
792
792
792
1,636
1,642
1,638
50
50
50
16
16
12
834
834
834
281
281
282
281
281
281
281
281
282
312
793
793
793
793
793
793
793
793
793
50
50
50
50
50
50
50
50
50
12
12
12
12
12
12
12
11
881
1,621
1,603
1,603
1,603
1,603
1,603
1,603
1,603
1,603
1,781
834
834
834
834
834
834
834
834
834
927
France
Germany,
Fed.
Rep. of
Greece
India
Iran
Iraq
Ireland
Israel
1965.
1966.
1967,
1968.
1969.
1970.
1971.
55
62
81
81
82
82
80
35
26
31
31
26
17
14
97
108
107
114
89
64
64
139
93
93
93
93
85
85
84
45
45
45
45
29
49
4,706
5,238
5,234
3,877
3,547
3,532
3,523
4,410
4,292
4,228
4,539
4,079
3,980
4,077
78
120
130
140
130
117
98
281
243
243
243
243
243
243
146
130
144
158
158
131
131
110
106
115
193
193
144
144
21
23
25
79
39
16
16
56
46
46
46
46
43
43
1972--Oct
Nov
Dec
87
87
87
16
16
16
69
69
69
92
92
92
53
53
53
3,826
3,826
3,826
4,436
4,436
4,459
132
132
133
264
264
264
142
142
142
156
156
156
17
17
17
42
44
43
1973--Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct.?
87
87
87
87
87
87
87
87
87
16
16
16
16
16
16
16
16
16
18
69
69
69
69
69
69
69
69
69
77
92
92
92
92
92
92
92
92
53
53
53
53
53
53
53
53
53
59
3,834
3,834
3,834
3,834
3,834
3,841
3,835
3,835
3,835
4,261
4,468
4,468
4,468
4,468
4,469
4,462
4,469
4,469
4,469
4,966
133
133
133
133
133
133
133
133
133
148
264
264
264
264
264
264
142
142
142
142
142
142
142
142
142
158
156
156
156
156
156
156
156
156
156
173
17
17
17
17
17
17
17
17
16
19
41
41
41
41
41
41
41
41
41
Italy
Kuwait
Lebanon
Libya
Malaysia
Netherlands
Mexi-
Norway
Pakistan
2,404
2,414
2,400
2,923
2,956
2,887
2,884
328
329
338
356
413
532
679
52
67
136
122
86
86
87
182
193
193
288
288
288
322
68
68
68
85
85
85
85
31
66
63
48
58
158
109
166
165
169
176
184
21
21
21
21
21
21
21
1,756
1,730
1,711
1,697
1,720
1,787
1,909
31
18
18
24
25
23
33
53
53
53
54
54
54
55
3,130
3,130
3,130
801
801
801
94
94
94
350
350
350
93
93
93
63
63
63
188
188
23
23
23
2,078
2,059
2,059
36
36
37
60
60
60
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,134
3,483
801
801
801
801
802
802
802
802
802
891
94
94
94
94
350
350
350
350
350
350
350
350
350
388
93
93
93
93
93
93
93
93
93
103
63
63
63
63
63
63
63
63
63
23
23
23
23
23
23
23
23
2,059
2,059
2,059
2,059
2,059
2,063
2,063
2,065
2,065
2,294
37
37
37
37
37
37
37
37
37
41
60
60
60
60
60
60
60
60
60
67
For notes see end of table.
Japan
188
188
188
188
188
188
186
184
D E C E M B E R 1973 • G O L D R E S E R V E S A N D
A 95
PRODUCTION
G O L D R E S E R V E S OF C E N T R A L B A N K S A N D G O V E R N M E N T S — C o n t i n u e d
(In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter)
r
l
r
17
l 17
'117
'117
'117
'117
'117
'117
116
129
1 Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European countries, and China Mainland.
The figures included for the Bank for International Settlements are
the Bank's gold assets net of gold deposit liabilities. This procedure
avoids the overstatement of total world gold reserves since most of the
gold deposited with the BIS is included in the gold reserves of individual
countries.
2
Adjusted to include gold subscription payments to the IMF made by
133
133
133
133
133
133
133
133
133
148
425
425
425
425
425
425
425
425
425
472
56
56
56
56
56
56
56
56
56
61
218
214
214
214
199
205
204
205
213
227
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3,162
3,512
89
89
89
89
89
89
89
89
89
99
136
136
136
136
136
136
136
136
136
810
810
810
810
810
810
220
220
220
220
220
220
220
220
220
244
1,022
1,022
1,022
1,022
1,022
1,022
1,022
1,035
1,036
267
255
218
800
800
800
542
542
542
542
542
542
542
542
542
1973—Jan...
Feb...
Mar..
Apr..
May.,
June.
July..
Aug..
Sept..
Oct.*.
56
56
56
122
122
136
706
711
714
720
721
724
734
740
738
820
'117
'117
r
l 17
425
425
425
89
89
89
217
217
217
1,021
1,021
1,021
169
169
133
3,158
3,158
3,158
541
541
541
1972—Oct...
Nov..
Dec..
-558
—424
-624
-349
-480
-282
310
155
146
140
133
165
162
148
636
662
681
425
637
583
1,243
1,115
666
410
19
21
22
50
51
52
51
2,265
1,940
1,291
1,474
1,471
1,349
775
3,042
2,842
3,089
2,624
2,642
2,732
2,909
73
69
69
119
119
119
r
108
Spain
401
401
401
403
403
384
391
116
102
97
97
117
126
130
202
203
203
225
226
200
200
576
643
699
856
876
902
921
1965.
1966.
1967.
1968.
1969.
1970.
1971.
96
92
92
92
92
92
82
810
785
785
785
784
498
498
South
Africa
Bank
for
Intl.
Settle-4
ments
United
Kingdom
Switzerland
Saudi
Arabia
Yugoslavia
Turkey
Sweden
Portugal
End of
period
Thailand
Uruguay
Venezuela
some member countries in anticipation of increase in Fund quotas, except
those matched by gold mitigation deposits with the United States and
United Kingdom; adjustment is $270 million.
3
Excludes gold subscription payments made by some member countries
in anticipation of increase in Fund quotas: for most of these countries
the increased quotas became effective in Feb. 1966.
4 Net gold assets of BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.
NOTE.—For back figures and description of the data in this and the
following tables on gold (except production), see "Gold," Section 14 of
Supplement to Banking and Monetary Statistics, 1962.
GOLD PRODUCTION
(In millions of dollars; valued at $35 per fine ounce through 1971 and at $38 per fine ounce thereafter)
North and South America
Africa
Period
1966
1967
1968
1969
1970
19712*
1972?
World
production i
1,445.0
1,410.0
1,420.0
1,420.0
1,450.0
South
Africa
Ghana
Zaire
United
States
Canada
Mexico
1,080.8
1,068.7
1,088.0
1,090.7
1,128.0
1.098.7
1.109.8
24.0
26.7
25.4
24.8
24.6
24.4
27.5
5.6
5.4
5.9
6.0
6.2
6.0
5.3
63.1
53.4
53.9
60.1
63.5
52.3
54.3
114.6
103.7
94.1
89.1
84.3
79.1
77.2
7.5
5.8
6.2
6.3
6.9
5.3
5.6
1972—Sept
Oct
Nov
Dec
93.9
94.2
91.5
84.3
6.3
6.3
6.0
6.3
1973—jan
Feb
Mar
Apr
May
June
July
Aug
Sept
88.2
86.5
88.5
86.6
86.0
87.6
88.3
89.4
6.2
6.1
6.3
6.2
6.8
6.4
5.6
5.7
5.7
1
Estimated; excludes U.S.S.R., other Eastern European countries,
China Mainland, and North Korea.
.4*
.4
.5
2
India
Japan
Philippines
Australia
All
otheri
9.8
9.0
8.4
7.7
7.1
6.6
7.1
4.2
3.4
4.0
3.4
3.7
4.1
4.0
19.4
23.7
21.5
23.7
24.8
27.0
32.2
15.8
17.2
18.5
20.0
21.1
22.2
23.0
32.1
28.4
27.6
24.5
21.7
23.5
28.7
62.9
59.4
61.6
60.0
54.1
.6
.5
.7
.5
.3
.3
.4
.3
3.1
2.7
.8
.5
.5
.6
.6
.3
.3
.4
.2
Nica- Colomragua
bia
5.2
5.2
4.9
3.7
4.0
3.7
3.0
Quarterly data.
Other
Asia
2.3
2.1
2.0
1.9
2.4
1.8
B U S I N E S S FINANCE • DECEMBER 1973
A 96
SALES, REVENUE, PROFITS, A N D DIVIDENDS OF LARGE M A N U F A C T U R I N G CORPORATIONS
(In millions of dollars)
1971
Industry
1969
1970
1971
1972
1972
1973
lr
III
IV
I
II
III
Total (170 corps.):
299,533 305,370 334,957 371,946
Sales
303,257 309,532 339,134 376,604
Total revenue
35,771
29,266
41,164
Profits before t a x e s . . . . . . . . 34,311
19,146
18,830
16,556
21 ,753
Profits after taxes
18,020 21,233
18,335
16,436
Memo: PAT unadj. 1
10,104
9,962
10,024
10,538
Dividends
80,916
82,017
7,893
4,293
3,950
2,509
87,214
88,317
9,709
5,031
4,373
2,581
88,349
89,452
9,715
5,212
5,162
2,538
93,853
95,271
10,467
5,674
5,687
2,598
89,550
90,803
8,978
4,936
4,490
2,525
Nondurable goods industries
(86 corps.): 2
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
138,621
140,837
17,404
10,223
9,529
5,386
147,808 160,973
150,312 163,448
19,900
16,935
10,490
9,649
10,085
9,591
5,664
5,560'
176,329
178,915
21,799
11 ,154
10,859
5,780
40,188
40,928
4,940
2,672
2,625
1,417
41,887
42,382
5,438
2,672
2,409
1,442
42,254
42,930
5,043
2,673
2,625
1,447
43,395
44,273
4,998
2,682
2,625
1,430
43,865
44,689
5,278
2,852
2,574
1,427
46,815
47,023
6,479
2,946
3,035
1,476
46,966
47,706
6,487
3,411
3,348
1,487
49,857
50,799
7,173
3,699
3,587
1,485
Durable goods industries
(84
corps.): 3
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
160,912
162,420
16,907
8,607
8,806
4,577
157,562
159,220
12,332
6,908
6,845
4,464
173,985
175,686
15,871
8,656
7,935
4,440
195,618
197,690
19,365
10,599
10,374
4,758
40,727
41,090
2,953
1,621
1,325
1,092
45,327
45,935
4,271
2,359
1,964
1,139
46,095
46,522
4,673
2,539
2,537
1,091
50,458
50,999
5,469
2,992
3,062
1,168
45,685
46,115
3,697
2,083
1,916
1,097
53,379
54,055
5,524
2,984
2,859
1,401
55,413
55,880
6,208
3,390
3,406
1,159
59,741
60,266
6,890
3,835
3,788
1,253
Selected industries:
Food and kindred prod.
(28 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. *
Dividends
28,962
29,341
2,845
1,364
1,266
764
31,966
32,393
3,122
1,571
1,540
812
34,584
35,090
3,372
1,714
1,644
862
37,624
38,091
3,573
1,845
1,805
893
8,717
8,831
898
453
448
216
9,073
9,206
863
446
386
218
8,824
8,941
794
414
408
221
9,229
9,371
880
454
452
222
9,531
9,665
940
486
492
223
10,039
10,115
960
490
452
227
9,561
9,711
890
470
453
237
10,183
10,346
989
509
490
230
29,961
30,308
4,123
2,180
2,206
1,262
31,086
31,490
3,863
2,111
2,137
1,298
33,005
33,388
4,123
2,290
2,167
1,332
36,638
37,053
4,853
2,672
2,671
1,395
8,344
8,423
1,060
580
573
336
8,432
8,574
1,031
586
494
342
8,779
8,868
1,172
652
649
337
9,167
9,265
1,184
667
626
341
9,099
9,196
1,216
683
684
340
9,593
9,723
1,280
669
712
378
10,153
10,264
1,487
838
834
346
10,693
10,849
1,615
900
884
359
56,411
57,770
8,490
5,630
4,987
2,836
61,360
62,826
8,509
5,158
5,131
2,917
68,534
69,903
10,835
5,624
5,519
2,952
74,662
76,133
11,461
5,562
5,325
2,992
16,805
17,291
2,590
1 ,421
1,396
734
18,007
18,154
3,138
1,418
1,390
755
18,269
18,695
2,684
1,384
1,356
763
18,169
18,756
2,433
1,270
1,273
742
18,298
18,837
2,628
1,398
1,119
741
19,925
19,845
3,717
1,509
1,578
746
19,924
20,339
3,514
1,760
1,737
777
21,323
21,876
3,889
1,903
1,888
772
Primary metals and prod.
(23 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
30,460
30,928
2,721
1,544
1,731
890
30,769
31,288
2,072
1,316
1,371
913
31,441
31,808
1,517
969
561
739
34,359
34,797
1,969
1,195
1,109
653
7,144
7,232
52
50
41
180
7,335
7,445
254
189
-213
162
7,848
7,931
386
247
260
162
8,886
8,984
581
372
465
161
8,525
8,629
413
274
128
162
9,099
9,253
589
302
256
168
9,635
9,733
618
383
397
200
10,784
10,891
888
545
538
178
Machinery (27 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
44,858
45,314
5,281
2,593
2,596
1,165
46,486
47,028
4,885
2,566
2,477
1,327
49,206
49,846
5,277
2,884
2,560
1,450
55,615
56,348
6,358
3,522
3,388
1,497
12,170
12,317
1,290
702
435
364
13,368
13,561
1 ,453
806
786
366
12,939
13,102
1,416
781
774
373
13,796
13,993
1,550
854
848
374
13,862
14,050
1,583
870
865
375
15,018
15,203
1,810
1,017
902
375
14,828
14,997
1,705
933
931
389
16,033
16,228
1,883
1,037
1,019
401
Motor vehicles and equipment
(9 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
53,996
54,248
5,315
2,644
2,638
1,750
48,905
49,108
2,153
1,306
1,301
1,434
61,481
61,804
5,648
2,948
2,952
1,433
70,653
71,139
6,955
3,626
3,640
1,762
13,621
13,670
696
385
381
359
16,109
16,308
1,598
831
849
359
17,273
17,353
2,017
1,037
1,034
359
18,953
19,105
2,290
1,186
1,178
439
14,703
14,735
628
343
337
365
19,725
19,946
2,019
1,060
1,091
599
21,616
21,710
2,716
1,405
1,429
369
22,256
22,361
2,704
1,446
1,436
474
Chemical and allied prod. (22
corps.):
Sales
Total
Profits before taxes
Profits after taxes
Memo: PAT unadj. 1
Dividends
Petroleum refining (15 corps.):
Sales
Total revenue
Profits before taxes
Profits after taxes
M e m o : P A T unadj. i
Dividends
1
Profits after taxes (PAT) as reported by the individual companies. In
contrast to other profits data in the series, these figures reflect company
variations in accounting treatment of special charges and credits.
2
Includes 21 corporations in groups not shown separately.
3
Includes 25 corporations in groups not shown separately.
NOTE—Data are obtained from published reports of companies and
reports made to the Securities and Exchange Commission. Sales are net
IV
II
100,194 102,379 109,598
101,078 103,586 111,065
12,003
12,695
14,063
5,931
6,801
7,534
5,894
6,754
7,375
2,877
2,646
2,738
of returns, allowances, and discounts, and exclude excise taxes paid directly by the company. Total revenue data include, in addition to sales,
income from nonmanufacturing operations and nonoperating income.
Profits are before dividend payments and have been adjusted to exclude
special charges and credits to surplus reserves and extraordinary items not
related primarily to the current reporting period. Income taxes, (not
shown) include Federal, State and local government, and foreign.
Previous series last published in June 1972 BULLETIN, p. A-50.
A 97
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ARTHUR F . B U R N S , Chairman
GEORGE W . MITCHELL,
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2/58.
L I Q U I D I T Y A N D P U B L I C P O L I C Y , Staff Paper b y Stephen H . A x i l r o d . 10/61.
S E A S O N A L L Y A D J U S T E D SERIES FOR BANK CREDIT.
7/62.
I N T E R E S T R A T E S A N D M O N E T A R Y P O L I C Y , Staff
Paper b y Stephen H . A x i l r o d . 9/62.
MEASURES OF MEMBER BANK RESERVES.
7/63.
REVISION OF BANK DEBITS AND DEPOSIT TURNO V E R S E R I E S . 3/65.
RESEARCH O N BANKING S T R U C T U R E AND PERF O R M A N C E , Staff E c o n o m i c S t u d y b y T y n a n
Smith. 4/66.
A REVISED INDEX OF MANUFACTURING CAPACITY,
Staff Economic Study b y Frank de L e e u w w i t h
Frank E . H o p k i n s and Michael D . Sherman. 11/66.
REVISED SERIES O N COMMERCIAL A N D INDUST R I A L L O A N S B Y I N D U S T R Y . 2/67.
T H E PUBLIC I N F O R M A T I O N A C T — I T S E F F E C T O N
M E M B E R B A N K S . 7/67.
INTEREST C O S T E F F E C T S OF COMMERCIAL BANK
UNDERWRITING OF MUNICIPAL R E V E N U E
B O N D S . 8/67.
U.S. I N T E R N A T I O N A L T R A N S A C T I O N S : T R E N D S IN
1960-67. 4/68.
F E D E R A L F I S C A L P O L I C Y IN T H E 1960's. 9/68.
H O U S I N G P R O D U C T I O N A N D F I N A N C E . 3/69.
T H E C H A N N E L S O F M O N E T A R Y P O L I C Y , Staff Economic Study b y Frank de L e e u w and E d w a r d
G r a m l i c h . 6/69.
REVISION OF W E E K L Y SERIES FOR COMMERCIAL
B A N K S . 8/69.
E U R O - D O L L A R S : A C H A N G I N G M A R K E T . 10/69.
R E C E N T C H A N G E S IN S T R U C T U R E O F C O M M E R C I A L B A N K I N G . 3/70.
SDR's IN F E D E R A L R E S E R V E O P E R A T I O N S A N D
S T A T I S T I C S . 5/70.
M E A S U R E S O F S E C U R I T Y C R E D I T . 12/70.
MONETARY AGGREGATES AND MONEY MARKET
C O N D I T I O N S IN O P E N M A R K E T P O L I C Y . 2/71.
B A N K F I N A N C I N G O F M O B I L E H O M E S . 3/71.
INTEREST RATES, CREDIT FLOWS, AND MONETARY
A G G R E G A T E S S I N C E 1964. 6/71.
T W O K E Y I S S U E S O F M O N E T A R Y P O L I C Y . 6/71.
S U R V E Y O F D E M A N D D E P O S I T O W N E R S H I P . 6/71.
BANK R A T E S O N BUSINESS
LOANS—REVISED
S E R I E S . 6/71.
INDUSTRIAL P R O D U C T I O N — R E V I S E D AND
NEW
M E A S U R E S . 7/71.
REVISED MEASURES OF MANUFACTURING CAPACI T Y U T I L I Z A T I O N . 10/71.
R E V I S I O N O F B A N K C R E D I T S E R I E S . 12/71.
PLANNED AND ACTUAL LONG-TERM BORROWING
B Y S T A T E & L O C A L G O V E R N M E N T S . 12/71.
A S S E T S A N D LIABILITIES O F F O R E I G N B R A N C H E S
O F U.S. B A N K S . 2/72.
W A Y S T O M O D E R A T E F L U C T U A T I O N S IN T H E C O N S T R U C T I O N O F H O U S I N G . 3/72.
C O N S T R U C T I O N LOANS A T COMMERCIAL BANKS.
6/72.
SOME ESSENTIALS OF INTERNATIONAL MONETARY
R E F O R M . 6/72.
CHARACTERISTICS OF FEDERAL R E S E R V E BANK
D I R E C T O R S . 6/72.
BANK DEBITS, DEPOSITS, A N D D E P O S I T T U R N O V E R — R E V I S E D S E R I E S . 7/72.
R E C E N T R E G U L A T O R Y C H A N G E S IN R E S E R V E R E Q U I R E M E N T S A N D C H E C K C O L L E C T I O N . 7/72.
YIELDS O N N E W L Y ISSUED C O R P O R A T E BONDS.
9/72.
R E C E N T ACTIVITIES OF FOREIGN BRANCHES OF
U.S. B A N K S . 10/72.
REVISION OF CONSUMER CREDIT STATISTICS.
10/72.
S U R V E Y O F F I N A N C E C O M P A N I E S , 1970. 11/72.
O N E - B A N K H O L D I N G C O M P A N I E S B E F O R E T H E 1970
A M E N D M E N T S . 12/72.
E V O L U T I O N O F T H E P A Y M E N T S M E C H A N I S M . 12/72.
REVISION OF THE MONEY STOCK MEASURES AND
M E M B E R B A N K R E S E R V E S A N D D E P O S I T S . 2/73.
D E V E L O P M E N T S IN U.S. B A L A N C E O F P A Y M E N T S .
4/73.
STATE AND LOCAL BORROWING ANTICIPATIONS
A N D R E A L I Z A T I O N S . 4/73.
FEDERAL R E S E R V E BULLETIN • DECEMBER 1973
A 104
YIELDS ON RECENTLY
B O N D S . 5/73.
OFFERED
CORPORATE
CREDIT-CARD AND CHECK-CREDIT PLANS AT COMM E R C I A L B A N K S . 9/73.
F E D E R A L F I S C A L P O L I C Y , 1965-72. 6/73.
R A T E S O N C O N S U M E R I N S T A L M E N T L O A N S . 9/73.
S O M E P R O B L E M S O F C E N T R A L B A N K I N G . 6/73.
B A L A N C E O F P A Y M E N T S A D J U S T M E N T S I N C E 1971.
10/73.
C H A N G E S IN T I M E A N D S A V I N G S D E P O S I T S , A P R I L J U L Y 1973. 10/73.
NEW SERIES FOR LARGE MANUFACTURING CORP O R A T I O N S . 10/73.
F I N A N C I A L D E V E L O P M E N T S IN T H E
THIRD
Q U A R T E R O F 1 9 7 3 . 11/73.
U.S. E N E R G Y S U P P L I E S A N D U S E S . 12/73.
TREASURY AND FEDERAL RESERVE FOREIGN EXC H A N G E O P E R A T I O N S , I N T E R I M R E P O R T . 12/73.
O P E N M A R K E T O P E R A T I O N S IN 1972. 6/73.
C H A N G E S IN B A N K L E N D I N G P R A C T I C E S , 1972. 7/73.
B A N K I N G A N D M O N E T A R Y S T A T I S T I C S , 1972. Selected series of banking and monetary statistics for
1972 only. 3/73 and 7/73.
C A P A C I T Y U T I L I Z A T I O N IN M A J O R M A T E R I A L S IND U S T R I E S . 8/73.
TREASURY AND FEDERAL RESERVE FOREIGN EXC H A N G E O P E R A T I O N S . 9/73.
ANTICIPATED SCHEDULE OF R E L E A S E D A T E S FOR PUBLIC PERIODIC R E L E A S E S 1 —
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Approximate
release day
Weekly releases
Date or period to
which data refer
Aggregate Reserves and Member Bank Deposits (H.3)
Tuesday
Week ended previous
Wednesday
Applications and Reports Received, or Acted on, by the Board
(H.2)
Friday
Week ended previous
Saturday
Wednesday
Wednesday, 2 weeks
earlier
Capital Market Developments (H.16)
Monday
Week ended previous
Friday
Changes in State Member Banks (K.3)
Tuesday
Week ended previous
Saturday
Commercial and Industrial Loans Outstanding by Industry (H.12) 2
Wednesday
Wednesday, 1 week
earlier
Condition Report of Large Commercial Banks in New York and
Chicago (H.4.3)
Thursday
Previous Wednesday
Condition Report of Large Commercial Banks and Domestic Subsidiaries (H.4.2) 3
Wednesday
Wednesday, 1 week
earlier
Deposits, Reserves, and Borrowings of Member Banks (H.7)
Wednesday
Week ended 3 Wednesdays earlier
Factors Affecting Bank Reserves and Condition Statement of Federal
Reserve Banks (H.4.1)
Thursday
Week ended previous
Wednesday
Money Stock Measures (H.6)
Thursday
Week ended Wednesday
of previous week
Reserve Positions of Major Reserve City Banks (H.5)
Friday
Week ended Wednesday
of previous week
Selected Interest and Exchange Rates for Major Countries and the
United States (H.13)
Thursday
Week ended previous
Saturday
Weekly Foreign Exchange Rates (H.10)
Monday
Week ended previous
Friday
Weekly Summary of Banking and Credit Measures (H.9)
Thursday
Week ended previous
Wednesday; and
week ended Wednesday of previous week
Weekly U.S. Government Security Yields and Prices (H.15)
Monday
Week ended previous
Saturday
Assets and Liabilities of
States (H.8)
All
Commercial
Banks in the
United
R e l e a s e dates are those anticipated or usually met. H o w e v e r , it should be noted that for some releases there is normally a certain variability
because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date
being later than anticipated.
2
Contains monthly H . 1 2 b release on second Wednesday of month.
'Contains revised H . 4 . 3 data.
FEDERAL RESERVE BOARD PUBLICATIONS
A 105
Semimonthly and bimonthly releases
Finance Rates and Other Terms on Selected Categories of Consumer
Instalment Credit Extended by Finance Companies (J.3)
20th of month
2nd month previous
Research Library—Recent Acquisitions (J.2)
1st and 16th
of month
Period since last release
Assets and Liabilities of All Member Banks by Districts (G.7.1).
14th of month
Last Wednesday of
previous month
Automobile Loans by Major Finance Companies (G.25)
7th working day
of month
2nd month previous
Automobile Instalment Credit Developments (G.26)
6th working day
of month
2nd month previous
Monthly releases
Bank Debits, Deposits, and Deposit Turnover (G.6)
25th of month
Changes in Status of Banks and Branches (G.4.5)
25th of month
Previous month
Previous month
Commercial and Industrial Term Loans Outstanding by Industry
(H.12b) Available only as attachment to weekly H.12 release
2nd Wednesday
of month
Last Wednesday of
previous month
Consumer Credit (G.19)
3rd working
day of month
2nd month previous
Consumer Instalment Credit at Commercial Banks (G.18)
4th working day
of month
2nd month previous
Finance Companies (G.20)
5th working day
of month
2nd month previous
Finance Rate and Other Terms on New and Used Car Instalment
Credit Contracts purchased from Dealers by Major Auto Finance Companies ( G . l l )
30th of month
Previous month
Index Numbers of Wholesale Prices (G.8)
20th of month
Previous month
Industrial Production (G.12.3)
(Similar data also available annually, see p. A-106)
15th of month
Previous month
Interdistrict Settlement Fund (G.15)
15th of month
Previous month
Interest Rates Charged on Selected Types of Bank Loans (G.10)
Maturity Distribution of Euro-Dollar Deposits in Foreign Branches
of U.S. Banks (G.17)
15th of month
2nd month previous
1st of month
Last day of 3rd month
previous
24th of month
Last Wednesday of
Monthly Foreign Exchange Rates (G.5)
1st of month
Previous month
Open Market Money Rates and Bond Prices (G.13)
6th of month
Previous month
State Member Banks of Federal Reserve System and Non-member
Banks that Maintain Clearing Accounts with Federal Reserve
Banks (G.4)
1st week of
month
Previous month
1st week of
February
End of previous year
Last week of
month
Release date
4th of month
Previous month
Bank Rates on Short Term Business Loans (E.2)
18th of March,
June, September,
December
1st 15 days of February,
May, August, November
Capacity Utilization in Manufacturing (E.5)
21st of January,
April, July,
October
Previous quarter
Maturity Distribution of
of Deposits (G.9)
Outstanding
Negotiable Time Certificates
previous month
(Also annual)
Summary of Equity Security Transactions (G.16)
U.S. Government Security Yields and Prices (G.14)
Quarterly releases
A 106
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Quarterly releases (cont.)
Flow of Funds:
Seasonally adjusted and unadjusted (Z.l)
Seasonally adjusted only (Z.la)
Approximate
release day
Date or period to
which data refer
15th of February,
May, August,
and November
Previous quarter
10th of April,
June, September,
December
2nd quarter previous
Assets and Liabilities of All Commercial Banks, by Class of Bank
(E.3.4)
May and November
End of previous December and June
List of OTC Margin Stocks (E.7)
June 30, December 31
Assets, Liabilities, and Capital Accounts of Commercial and Mutual
Savings Banks—Reports of Call (Joint Release of Federal Deposit Insurance Corp., Board of Governors of Federal Reserve
System, and Office of Comptroller of the Currency. Published
and distributed by FDIC.)
May and November
Volume and Composition of Individuals' Saving
(Flow of funds series) (E.8)
Sales, Revenue, Profits, and Dividends of Large Manufacturing Corporations (E.6)
Semiannual releases
Annual releases
Approximate
release day
Release date
End of previous December and June
Date or period to
which data refer
Bank Debits to Demand Deposit Accounts Except Interbank and U.S.
Government Accounts (C.5)
March 25
Previous year
End of Month Demand Deposits Except Interbank and U.S. Government Accounts (C.5a)
March 25
Previous year
Federal Reserve Par List (G.3)
Early November
Previous September 30
5th of month
Period since last release
Industrial Production and Related Data
(Available upon request, after being announced)
November
Previous year
Member Bank Income (C.4)
End of May
Previous year
(Also monthly supplements)
INDEX TO STATISTICAL TABLES
(For list of tables published periodically, but not monthly, see page A-3)
Acceptances, bankers', 11, 31, 33
Agricultural loans of commercial banks, 22, 24
Arbitrage, 93
Assets and liabilities (See also Foreigners):
Banks, by classes, 18, 22, 23, 24, 37
Federal Reserve Banks, 12
Nonfinancial corporations, current, 48
Automobiles:
Consumer instalment credit, 54, 55, 56
Production index, 58, 59
Bank credit proxy, 17
Bankers' balances, 23, 26
(See also Foreigners, claims on, and liabilities to)
Banks for cooperatives, 38
Bonds (See also U.S. Govt, securities):
New issues, 45, 46, 47
Yields and prices, 34, 35
Branch banks:
Assets, foreign branches of U.S. banks, 86
Liabilities, U.S. banks to foreign branches, 28, 87, 88
Brokerage balances, 85
Business expenditures on new plant and equipment, 48
Business indexes, 62
Business loans (See Commercial and industrial loans)
Capacity utilization, 62
Capital accounts:
Banks, by classes, 18, 23, 28
Federal Reserve Banks, 12, 13
Central banks, 92, 94
Certificates of deposit, 28
Coins, circulation, 15
Commercial and industrial loans:
Commercial banks, 17, 22, 31
Weekly reporting banks, 24, 29
Commercial banks:
Assets and liabilities, 17, 18, 22, 23, 24
Consumer loans held, by type, 55
Deposits at, for payment of personal loans, 30
Loans sold outright, 31
Number, by classes, 18
Real estate mortgages held, by type, 50
Commercial paper, 31, 33
Condition statements (See Assets and liabilities)
Construction, 62, 63
Consumer credit:
Instalment credit, 54, 55, 56, 57
Noninstalment credit, by holder, 55
Consumer price indexes, 62, 66
Consumption expenditures, 68, 69
Corporations:
Profits, taxes, and dividends, 48
Sales, revenue, profits, and dividends of large manufacturing corporations, 96
Security issues, 46, 47
Security yields and prices, 34, 35
Cost of living (See Consumer price indexes)
Currency and coin, 5, 9, 23
Currency in circulation, 5, 15, 16
Customer credit, stock market, 36
Debits to deposit accounts, 14
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 14, 17, 23
Banks, by classes, 18, 23, 27
Ownership by individuals, partnerships, and
corporations, 30
Subject to reserve requirements, 17
Turnover, 14
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 30
Banks, by classes, 18, 23, 27, 37
Euro-dollars, 88
Federal Reserve Banks, 12, 13, 88
Postal savings, 23
Subject to reserve requirements, 17
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 48, 96
Dollar assets, foreign, 75, 81
Earnings and hours, manufacturing industries, 65
Employment, 62, 64, 65
Euro-dollar deposits in foreign branches of U.S. banks, 88
Farm mortgage loans, 49, 50
Federal agency obligations, 11, 12, 13, 14
Federal finance:
Receipts and outlays, 40, 41
Treasury operating balance, 40
Federal funds, 7, 22, 24, 28, 33
Federal home loan banks, 38, 39, 51
Federal Home Loan Mortgage Corporation, 53
Federal Housing Administration, 49, 50, 51, 52, 53
Federal intermediate credit banks, 38, 39
Federal land banks, 38, 39
Federal National Mortgage Assn., 38, 39, 52
Federal Reserve Banks:
Condition statement, 12
U.S. Govt, securities held, 4, 12, 14, 42, 43
Federal Reserve credit, 4, 6, 12, 14
Federal Reserve notes, 12, 13, 15
Federally sponsored credit agencies, 38, 39
Finance companies:
Loans, 24, 54, 55, 57
Paper, 31, 33
Financial institutions, loans to, 22, 24
Float, 4
Flow of funds, 70
Foreign:
Currency operations, 11, 12, 13, 75, 81
Deposits in U.S. banks, 5, 12, 13, 23, 27, 88
Exchange rates, 91
Trade, 73
Foreigners:
Claims on, 82, 83, 88, 89, 90
Liabilities to, 28, 76, 77, 79, 80, 81, 88, 89, 90
Gold:
Certificates, 12, 13, 15
Earmarked, 88
Net purchases by United States, 74
Production, 95
Reserves of central banks and govts., 94
Stock, 4, 75
A 108
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Government National Mortgage Assn., 52
Gross national product, 68, 69
Prime rate, commercial banks, 32
Production, 58-61, 62
Profits, corporate, 48, 96
Hours and earnings, manufacturing industries, 65
Housing permits, 62
Housing starts, 63
Real estate loans:
Banks, by classes, 22, 25, 37, 50
Delinquency rates on home mortgages, 53
Mortgage yields, 35, 51, 52, 53
Type of holder and property mortgaged, 49-53
Reserve position, basic, member banks, 7
Reserve requirements, member banks, 9
Reserves:
Central banks and govts., 94
Commercial banks, 23, 26, 28
Federal Reserve Banks, 12, 13
Member banks, 5, 6, 17, 23
U.S. reserve assets, 75
Residential mortgage loans, 35, 49, 50, 51, 52, 53
Retail credit, 54
Retail sales, 62
Income, national and personal, 68, 69
Industrial production index, 58-61, 62
Instalment loans, 54, 55, 56, 57
Insurance companies, 37, 42, 43, 50, 51
Insured commercial banks, 20, 22, 30
Interbank deposits, 18, 23
Interest rates:
Business loans by banks, 32
Federal Reserve Banks, 8
Foreign countries, 92, 93
Money market rates, 33
Mortgage yields, 51, 52, 53
Prime rate, commercial banks, 32
Time and savings deposits, maximum rates, 10
Yields, bond and stock, 34
International capital transactions of U.S., 76-90
International institutions, 74, 75, 92, 94
Inventories, 68
Investment companies, issues and assets, 47
Investments (See also specific types of investments):
Banks, by classes, 18, 22, 25, 26, 37
Commercial banks, 17
Federal Reserve Banks, 12, 14
Life insurance companies, 37
Savings and loan assns., 38
Labor force, 64
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 18, 22, 24, 37
Commercial banks, 17, 18, 22, 24, 29, 31, 32
Federal Reserve Banks, 4, 6, 8, 12, 13, 14
Insurance companies, 37, 50, 51
Insured or guaranteed by U.S., 49, 50, 51, 52, 53
Savings and loan assns., 38, 51
Manufacturers:
Capacity utilization, 62
Production index, 59, 62
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 18, 22
Borrowings at Federal Reserve Banks, 6, 12
Number, by classes, 18
Reserve position, basic, 7
Reserve requirements, 9
Reserves and related items, 4, 6, 17
Mining, production index, 59, 61
Mobile home shipments, 63
Money market rates (See Interest rates)
Money stock and related data, 16
Mortgages (See Real estate loans and Residential mortgage
loans)
Mutual funds (See Investment companies)
Mutual savings banks, 27, 37, 42, 43, 50
National banks, 20, 30
National defense expenditures, 41, 68
National income, 68, 69
Nonmember banks, 20, 22, 23, 30
Open market transactions, 11
Payrolls, manufacturing index, 62
Personal income, 69
Postal savings, 23
Prices:
Consumer and wholesale commodity, 62, 66
Security, 35
Sales, revenue, profits, and dividends of large manufacturing
corporations, 96
Saving:
Flow of funds series, 70
National income series, 68
Savings and loan assns., 38, 43, 51
Savings deposits (See Time deposits)
Savings institutions, principal assets, 37, 38
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 38, 39
International transactions, 84, 85
New issues, 45, 46, 47
Yields and prices, 34, 35
Silver coin, 15
Special Drawing Rights, 4, 12, 13, 72, 75
State and local govts.:
Deposits, 23, 27
Holdings of U.S. Govt, securities, 42, 43
New security issues, 45, 46
Ownership of securities of, 22, 26, 37
Yields and prices of securities, 34, 35
State member banks, 20, 30
Stock market credit, 36
Stocks (See also Securities):
New issues, 46, 47
Yields and prices, 34, 35
Tax receipts, Federal, 41
Time deposits, 10, 17, 18, 23, 27
Treasury cash, Treasury currency, 4, 5, 15
Treasury deposits, 5, 12, 13, 40
Treasury operating balance, 40
Unemployment, 64
U.S. balance of payments, 72
U.S. Govt, balances:
Commercial bank holdings, 23, 27
Member bank holdings, 17
Treasury deposits at Reserve Banks, 5, 12, 13, 40
U.S. Govt, securities:
Bank holdings, 18, 22, 25, 37, 42, 43
Dealer transactions, positions, and financing, 44
Federal Reserve Bank holdings, 4, 12, 13, 14, 42, 43
Foreign and international holdings, 12, 81, 84, 88
International transactions, 81, 84
New issues, gross proceeds, 46
Open market transactions, 11
Outstanding, by type of security, 42, 43, 45
Ownership, 42, 43
Yields and prices, 34, 35
United States notes, 15
Utilities, production index, 59, 61
Veterans Administration, 49, 50, 51, 52, 53
Weekly reporting banks, 24
Yields (See Interest rates)
INDEX TO VOLUME 59
GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES
Issue
January ...
February ..
March
April
May
June
Text
etc.
total
1- 50
51-128
129-242
243-316
317-382
383-480
Other ("A' ' pages)
Total
1-109
1-109
1-125
1-107
1-121
1-118
Index to
tables
108-109
108-109
124-125
106-107
120-121
117-118
Issue
July
August
September
October
November
December
...
Text
etc.
total
481-550
551-610
611-712
713-778
779-836
837-924
Other ("A' ' pages)
Total
1-109
1-107
1-105
1-104
1-108
1-119
Index to
tables
108-109
106-107
104-105
103-104
107-108
107-108
(References to " A " pages in this index are to such pages in the December issue.)
Pages
Acceptances made by State member banks, amount limitations, interpretation
Air Force, joint experiment with Treasury and Federal
Reserve to automate Govt, payrolls
Alexander, Ridley, director, Memphis Branch, appointment
Alibrandi, Joseph F., Class C director and Deputy Chairman, San Francisco, appointment
Allison, Theodore E., Assistant Secretary of the Board,
appointment
Altmann, Murray, Special Assistant to the Board, Office
of Managing Director for Research and Economic
Policy, appointment
Andersen, Harold W., Class C director, Kansas City,
appointment
Annual Report, 1972, Board of Governors
Articles:
Bank lending practices, 1972, changes
Capacity utilization in major materials industries ...
Consumer instalment loans, rates
Corporate bonds, yields on recently offered bonds .
Corporate external financing, recent patterns
Corporations, large manufacturing, new series
Credit-card, check-credit plans at commercial banks
Federal fiscal policy, 1965-72
Financial developments, quarterly reports to Congress:
Q-4, 1972
Q - l , 1973
Q-2, 1973
Q-3, 1973
Industrial production, expansion
Member bank income, 1972
Money stock measures and member bank reserves and
deposits, revision of series
Mortgage, construction, and real estate markets
1972: A year of accelerating recovery
Open market operations in 1972
Price developments, recent
State and local borrowing anticipations and realizations
Time and savings deposits, surveys
261, 493,
Treasury and Federal Reserve foreign exchange operations, reports
142, 506, 622,
U.S. balance of payments, developments, and adjustment since 1971
243,
Assets and liabilities, foreign branches, member banks
Automobile credit statistics, 1960-72, revision
Axilrod, Stephen H., Adviser to Board, Office of Managing Director for Research and Economic Policy,
appointment
831
Balance of payments (See U.S. balance of payments)
Balles, John J., Steering Committee member for foreign
banking study, announcement
123
450
608
47
42
478
831
41
380
501
564
641
336
837
731
646
383
51
317
551
779
611
329
61
481
1
405
129
257
724
871
713
710
240
Pages
Bank holding companies (For orders issued to individual
companies under the Bank Holding Company Act,
see Bank Holding Company Act):
Groups, banking offices, assets, and deposits of banks
in addtional data
923
Regulation Y:
Amendments
19, 833, 892
Interpretations and statement
833, 892
Bank Holding Company Act:
Board elimination of equal offer to all stockholders as
criterion for Reserve Banks' consideration of applications under, amendment of regulation
811
Board review under grandfather proviso in:
Alaska Bancshares, Inc
211
Alexandria Shares Corp
224
Amalgamated Associates Co
224
Amalgamated Investments Co
224
Bankshares of Indiana, Inc. (formerly Indiana Industries, Inc.)
225
Barclay's Bank, Ltd., London, England
225
Charles Stewart Mott Foundation
225
Chicago City Bancorporation, Inc
308
Columbia Union Bancshares
225
Contract Leasing Corporation and Clayton Bankshares Corporation
215
Coronado Financial Corp
225
D. H. Baldwin Company
536
Delta Loan & Finance Company
225
Doyle, Frank P. Trust, Article IX
224
Financial General Corp
225
Financial Investments Corp
224
Financial Network Corp
224
First Bancorporation
224
First Highland Corp
224
First National Bank in Dallas
219
First National Bank of Cicero Corp
224
First Nationald Bank Voting Trust
211
First Oklahoma Bancorporation, Inc
217
First Railroad & Banking Company of Georgia .. 220
Hong Kong and Shanghai Banking Corporation,
Hong Kong
224
Hopeton Holding Corp
224
Houston National Co
225
Independent Bancorporation
225
Industrial Bank of Japan, Ltd., Tokyo, Japan ... 225
International Equities, Inc
224
Investment Securities Corp
224
Keystone Consolidated Industries, Inc
222
Marine Bancorporation
224
Memphis Trust Company
225
Mercantile Commerce Co
225
Millikin, James, Estate of, deceased
225
Minnesota Small Loan Company
225
A 109
A 110
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Pages
Bank Holding Company Act—Continued
Board review under grandfather proviso in—cont.
National Bank of Greece, S.A., Athens, Greece . 225
Patagonia Corporation
539
Perpetual Corporation and Pierce National Life Insurance Company
218
Potomac Securities Corp
224
Republic National Bank of Dallas
600, 768
Royal Bank of Canada, Montreal, Canada
225
Sealy & Smith Foundation for the John Sealy Hospital
225
South St. Louis Investment Company or Hampton
Bankshares Corporation
225
Southeastern Shares Corp
225
Sumitomo Bank, Ltd., Osaka, Japan
224
Swiss-Israel Trade Bank, Geneva, Switzerland;
Beaver Securities Co. Inc., New York, N.Y.; and
Exchange Place Corp., New York, N.Y
771
Tennessee Shares Corp
225
U T Securities Corp
225
Virginia Bankshares, Inc
224
Wasatch National, Inc
225
Western and Southern Life Insurance Company . 225
Whitney Holding Corporation
371
Zachary Taylor Life Insurance Company
225
Zions Utah Bancorporation
213
Orders issued under:
ASB Investment Company
706
Affiliated Bankshares of Colorado, Inc
682
Alabama Bancorporation
120,372,
583, 602, 828, 918
Alabama Financial Group, Inc
311, 543, 603, 775
Alpha Agency, Inc
918
American Bancorporation
311
American Bancorporation, Inc
544
American Bancshares, Inc
708
American Fletcher Corporation
476, 544
American National Holding Company
23. 32, 774
Associated Bank Corporation
828
Atlantic Bancorporation
685, 776
BancOhio Corporation . . 3 2 , 1 2 0 , 3 7 2 , 4 7 5 , 5 4 3 , 830
Bancorporation of Montana
543
Bank of Virginia Company
312, 918
Bank America Corporation
544, 592, 687
Bankers Trust New York Corporation ..364, 543, 694
Barnett Banks of Florida, Inc
299, 311,
372, 475, 476, 602, 706, 828, 918
Berkshire Bancorp Inc
603
Boone County Insurance Agency
121
CBT Corporation
I l l , 469
C-M Company, Inc
31, 33
Cambridge Agency, Inc
120, 122
Cegrove Corporation
676
Central Bancompany
829
Central Bancorp., Inc
461
Central Bancshares of the South, Inc. . . 3 7 2 , 5 4 3 , 918
Central Mortgage Company, Inc
475, 476
Central National Bancshares, Inc
828, 829, 920
Central National Corporation
776, 919
Central Texas Financial Corporation
705
Centran Bancshares Corporation
471, 544
Century Bancorp, Inc
121
Century Bancshares, Inc
31, 33
Charter New York Corporation
311, 372
Chase Manhattan Corporation
475, 918
Chemical New York Corporation
121,698, 919
Citibanc Group, Inc
31
Citizens Agency, Inc
310, 312
Citizens and Southern Holding Company, Inc. .. 707
Citizens Bancshares Corporation
705
Citizens Commercial Corporation
828
CleveTrust Corporation
602
Commerce Bancshares, Inc
32, 311, 603, 829
Commonwealth National Corporation
918
Pages
Bank Holding Company Act—Continued
Orders issued under—Cont.
Connecticut BancFederation, Inc
898
Continental Banksystem, Inc
597
Continental Illinois Corporation
919
County National Bancorporation
312, 919
Crocker National Corporation
476
D. H. Baldwin Company
750, 752
Dawson Corporation
917, 919
Dearborn Financial Corporation
372
Deposit Guaranty Corp
593
Dominion Bankshares Corporation 373, 543, 707, 919
Doraco, Inc
311
Ellis Banking Corporation
300,311, 828
Elmer Crosley and Sons Investment Corporation
31
Equitable Bancorporation
121
Exchange Bancorporation, Inc
708
F&M National Corporation
905
F & M Operating Company
117
Farmer City Agency, Inc
918
Farmers & Merchants Insurance Agency, Inc. ...372, 373
Federated Texas Bancorporation, Inc
310
Fidelity American Bankshares, Incorporated ..32, 33,
774, 919
Fidelity Corporation of Pennsylvania
373, 472
Fidelity Financial Corporation of Michigan
120
Fidelity Union Bancorporation
373
Financial Data Systems, Inc
774
Financial General Bankshares, Inc
677, 678
First Alabama Bancshares, Inc
372, 584,
756, 757, 828
First Amtenn Corporation
122, 373, 475, 706
First & Merchants Corporation
587, 603, 829
First Arkansas Bankstock Corporation ... 28, 476, 828
First at Orlando Corporation
302, 311, 918
First Banc Group, Inc
774
Frist Banc Group of Ohio, Inc
828
First Bancgroup-Alabama, Inc
542
First Bancorp, Inc
311
First Bancorporation of Texas, Inc
603
First Bancshares of Florida, Inc. .. 545, 603,829, 830
First Bankshares Corp. of S.C
829
First Chicago Corporation
604
First City Bancorporation of Texas, Inc
105, 107,
4 5 1 , 4 7 5 , 5 4 3 , 603
First Commerce Corporation
604
First Commercial Banks Inc
20, 118, 776
32
First Continental Corporation
First Finance Company and Mid-Continent Bancshares
602, 604
First Financial Corporation
121, 543
First Florida Bancorporation
121, 183, 543, 603
First Georgia Bancshares, Inc
542
First International Bancshares, Inc
453, 529
543, 603, 775, 812, 813, 814, 828
First Jersey National Corporation
373
First National Agency of Aitkin, Inc
705, 707
First National Bancorporation, Inc
360, 543
First National Bank in Dallas and First National
Securities Company in Dallas
32
First National Bankshares of Florida, Inc
362
First National Boston Corporation
758, 759
First National Charter Corporation
311, 603, 605
First National City Corporation
27, 114, 775, 919
First National Company of Missouri Valley, Inc.
209
First National Financial Corporation 121, 373, 475, 920
First National Holding Corp
203, 210, 373, 775
First National State Bancorporation
210, 900
First New Mexico Bankshare Corporation ....589, 706
First Newton Bankshares, Inc
705
First Pennsylvania Corporation
33, 477, 544, 604
First Piedmont Corporation
456
First Pioneer Bancorp, Inc
542
First Railroad & Banking Company of Georgia ..
25
A 111
INDEX TO VOLUME 59
Pages
Bank Holding Company Act—Continued
Orders issued under—Cont.
First Security Corporation
First Security National Corporation
First State Bancshares Corporation
First Steuben Bancorp, Inc
First Tennessee National Corporation
32, 455, 603
373, 543, 920
31
121, 918
20, 373,
544, 775, 918
First Texas Bancorp, Inc
829
First Union, Incorporated
210,543, 603
First United Bancorporation, Inc
373, 543
First Valley Corporation
829
First Virginia Bankshares Corporation . . 2 0 2 , 4 7 5 , 907
First Wisconsin Bankshares Corporation
191
First Wyoming Bancorporation
705
First York Ban Corp
542
Florida Bancorp, Inc
816
Florida Bankshares, Inc
372
Florida National Banks of Florida, Inc
210
Forest Lake Finance Company
917, 919
Fort Worth National Corporation
311,706, 775
Fourth Financial Corporation
208
Franklin Bancorporation
917
Frisco-Dillon, Inc
31
Frost Realty Company
311
FrostBank Corporation
919
General Financial Systems, Inc
706, 903
Geneva Investment Company
475, 477
Globe Corporation
373
Great American Corporation
122
Great Lakes Bancorp, Inc
706
Great Lakes Holding Company
706
Greater Jersey Bancorp
543, 544
Hamilton Bancshares, Inc
109, 544, 817
Hathdel Inc
602
Hawkeye Bancorporation of Des Moines
706
Heldenfels Brothers
122
Heritage Bancorporation
918
Illinois Neighborhood Development Corporation . 917
Indian Head Banks Inc
210, 918
Industrial National Corporation
206
Iron City Eagle Coal, Inc
602
Irwin Union Corporation
919
Jackman Management
311
Jacob Schmidt Company and American Bancorporation, Inc
829
Landmark Banking Corporation of Florida 543, 775, 830
Liberty National Corporation
919
Maine Bancorporation
604
Manufacturers Hanover Corporation
32, 121,
3 1 1 , 5 3 2 , 5 4 3 , 7 7 5 , 908
Manufacturers National Corporation
209
Marine Bancorporation
707
Marine Midland Banks, Inc
919
Mark Twain Bancshares, Inc
476
Marshall & Ilsley Corporation
22
Mellon National Corporation
775, 910
Mercantile Bancorporation, Inc. .. 603, 776, 828, 830
Mercantile Bankshares Corporation
476, 918
Merchants National Corporation
312
Michigan Financial Corporation
542
Michigan National Corporation
819
Mid-America Fidelity Corporation
706
Midlantic Banks, Inc
707
Midwest Bank Shares, Inc
31
Moody Foundation
604
Mountain Banks, Ltd
312
Multibank Financial Corp
679, 776
NBS Financial Corporation
918
NCNB Corporation
305
National Bancshares Corporation of Texas
210
New England Merchants Company, Inc
459, 476
New Jersey National Corporation
312
North American Mortgage Corporation
32
Pages
Bank Holding Company Act—Continued
Orders issued under—Cont.
North Shore Capital Corporation
31
Northeast Bankshare Association
828
Northern Virginia Bankshares Incorporated
33
Northwest Bancorporation ....194, 477, 701, 706, 762
Northwest Iowa Bancorporation
310
Oakland Banshares, Inc
...209, 210
Old Kent Financial Corporation
544, 776, 823
Orbanco, Inc
367, 604
Palmer Bank Corporation
182
Pan American Bancshares, Inc
605, 707
PanNational Group Inc
544, 603
Patagonia Corporation
369, 544, 604
Peninsular Holding Corporation of Michigan
209
Peoples National Corporation
776
Philadelphia National Corporation
545,775, 913
Piedmont Carolina Financial Services, Inc
766
Pierce Agency, Inc
918
Poplar Insurance Agency, Inc
31,
33
R. R. Donnelley & Sons Company
477
Redwood Bancorp
122, 604
Republic of Texas Corporation
827
Rock County BanCorp and Jackman Management 310
Schroder International Limited and Schroder International Holdings Limited, London, England
917
Security National Corporation
32, 122, 468
Security New York State Corporation
476
South Carolina National Corporation
707
Southeast Banking Corporation 121, 460, 476, 775, 918
Southern Bancorporation
764
Southwest Bancshares, Inc
32, 121, 311
Southwest Company
599
Southwest Florida Banks, Inc
310
Standard and Chartered Banking Group, Limited,
London, England
775
State National Corporation
31
State Street Boston Financial Corporation — 5 2 6 , 544
Stockgrowers State Bank Company Inc
542
Suburban Bancorporation
825
Survco Bancorp, Inc
542, 545
Tennessee Homestead Company
32
Tennessee National Bancshares, Inc
700
Tennessee Valley Bancorp, Inc
373, 604
32, 373
Texas Commerce Bancshares, Inc
Third National Corporation
121, 373, 477, 706
Twin Gates Corporation
920
Twin Gates Corporation and Northern States Bancorporation, Inc
829
U.N. Bancshares, Inc
204, 476
Union Bancorp, Inc
914
Union Bancshares Company
707
Union Commerce Corporation, Cleveland, Ohio 829
Union Commerce Corporation, Wash., D.C
476
Union Planters Corporation
828
United Alabama Bancshares, Inc
545
United Banks of Colorado, Inc
121, 706, 828
United Banks of Wisconsin, Inc
32
United Carolina Bancshares Corporation
596
United First Florida Banks, Inc
706, 918
United Jersey Banks
544
United Michigan Corporation
372
United Missouri Bancshares, Inc
775
United Ohio Bancorp
542
United Tennessee Bancshares Corporation
530
United Virginia Bankshares, Incorporated ..707, 828, 919
Virginia National Bankshares, Inc
373, 544
Walter Heller International Corp
463
Waverly Investment Company
827, 829
Wells Fargo & Company
122, 707
Whitmore Bancorporation, Inc
542
Worcester Bancorp Inc
477
Wyoming Bancorporation
180, 210, 775
Zions Utah Bancorporation
312, 919
A 112
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Bank Merger Act:
Orders issued under:
Alabama Bank of Guin, Guin, Ala
312
Bank of Fulton County, East Point, Ga
545
Bank of Lansing, Lansing, Mich
33
Cheboygan State Bank, Cheboygan, Mich
374
Citizens Bank of Poquoson, Poquoson, Va
546
Cleveland Trust Company of Lorain, Lorain, Ohio 605
Cleveland Trust Company of Painesville, Painesville, Ohio .
605
Cuyahoga Bank, Cleveland, Ohio
605
Delta Bank, Delta, Ohio
122
FBT Bank, Fremont, Mich
:
776
Grand Haven State Bank, Grand Haven, Mich. .
33
Interim Bank of Oxford, Oxford, Ala
920
Menominee State Bank, Menominee, Mich
477
Montana Street State Bank, El Paso, Tex
545
Mountain Bank, Roanoke, Va
707
New Corpus Christi Bank and Trust, Corpus Christi,
Tex
452
North Moore Street Bank, Arlington, Va
312
PSB Bank, Holland, Mich
825
Peoples Bank and Trust Company, Selma, Ala. .. 920
Peoples Bank of Stark County, Canton, Ohio ... 708
Peoples Savings Bank Company, Delta, Ohio ... 829
Rice Avenue State Bank, Ballaire, Tex
815
Sandusky Security Bank, Sandusky, Ohio
33
Texas Bank & Trust Company of Dallas, Dallas,
Tex
545
Traverse City Bank and Trust Company, Traverse
City, Mich
33
West Branch Bank, West Branch, Mich
776
Barton, David W., Jr., director, Baltimore Branch, appointment
40
Beaird, Charles T., Class C director, Dallas, appointment 42
Bennion, Sam H., director, Salt Lake City Branch, appointment
42
Black, Robert P., President, Federal Reserve Bank of
Richmond, appointment
606
Board of Governors (See also Federal Reserve System):
Annual Report, 1972
380
Auditing, statement on proposed legislation
734
Bank credit actions taken
375, 548, 549, 709, 921
Bank holding company and bank merger applications
(See Bank Holding Company Act and Bank Merger
Act)
Delegation of authority (See Regulations)
Foreign banking study, announcement of review ... 123
Foreign credit restraint program (See Foreign credit
restraint program guidelines)
Interpretations (See Interpretations)
Loan commitments, letter sent to State member banks 313
Members:
Burns, Arthur F.:
Addresses at International Monetary Conference
and dedication of new Reserve Bank
building
417, 655
Statement on termination of official gold transactions agreement
831
Holland, Robert C., appointment
478
List, 1913-73
433
Mitchell, George W., Vice Chairman, designation 375
Robertson, James L., resignation
375
Statements to Congress (See Statements to Congress)
Members and officers
A-98
Publications (See Publications)
Regulations and Rules (See Regulations)
Staff changes:
Allison, Theodore E
478
Altmann, Murray
831
Axilrod, Stephen H
831
Broida, Arthur L
831
Board of Governors—Continued
Staff changes—Cont.
Burke, Ronald G
Coyne, Joseph R
Denkler, John M
Doyle, Daniel M
606,
Engstrom, Keith D
Feldberg, Chester B
240,
Fieleke, Norman S., on leave of absence from Federal Reserve Bank of Boston
Garwood, Griffith L
Gramley, Lyle E
Hackley, Howard H
Halley, Harry J
Hart, John J
Henry, George B
Hersey, A. B
Johnson, Edwin J
Junz, Helen B
Kelleher, Joseph E
35,
Kiley, John N., Jr
Kreimann, Walter W
Kudlinski, James R
Lawrence, Robert J
Mcintosh, James A
McWhirter, E. Maurice
Melnicoff, David C
Minami, Warren N
Nicoll, John
Oehmann, Andrew F
Partee, J. Charles
Pierce, James
Plotkin, Robert S
Smith, Tynan
Tuttle, Baldwin B
Wiles, William W
Wood, Ralph C
Bonds, yields on recently offered corporate bonds, article
Borrowing anticipations and realizations, State and local,
article
375
240
313
831
606
375
709
240
831
375
313
606
709
478
478
709
478
478
35
606
478
375
606
831
606
240
240
831
831
240
375
606
478
478
336
257
Branch banks:
Federal Reserve:
Cincinnati and Pittsburgh Branches, transfer of part
of territory of Cleveland Reserve Bank to
549
Construction and renovation, statement on proposed
legislation to increase ceiling on expenditures . 734
Directors (See Directors)
Vice Presidents in charge
A-101
Foreign:
Branches of member banks, assets and liabilities
710
Policy statement on availability of information to
facilitate supervision, interpretation
449, 541
Reserve requirements, amendment of Regulations D
and M
445, 447
Brimmer, Andrew F., statement on proposed legislation
concerning consumer finance
429
Broeker, Bernard D., Class B director, Philadelphia,
election
43
Broida, Arthur L.:
Assistant to the Board, Office of Managing Director
for Research and Economic Policy, appointment
831
Secretary, Federal Open Market Committee, appointment _
548
Bruner, William W., director, Charlotte Branch, appointment
46
Bucher, Jeffrey M.:
Consumer finance, statement
420
Member, Federal Reserve System Labor Relations
Panel, appointment
240
Steering committee member for foreign banking study,
announcement
123
INDEX TO VOLUME 59
Pages
Burke, Ronald G., Director, Division of Federal Reserve
Bank Operations, appointment
375
Burns, Arthur F.:
Central banking, some problems, remarks at International Monetary Conference
417
Economic Stabilization Act, statements on extension,
in capacity as Chairman of Committee on Interest and
Dividends
81, 280
Economy, statement on condition
164, 567
Federal budget, statement on proposed legislation concerning congressional review and control
171
Federal Reserve System, excerpt from address on its
objectives and responsibilities
655
Foreign exchange markets and U.S. balance of payments, statements on recent developments
508, 879
Gold transactions, statement on termination of official
agreement
831
Money supply in conduct of monetary policy, letter
to Senator Proxmire
791
Mortgage credit and housing markets, statement ... 658
Par Value Modification Act of 1972, statements on
proposed amendment
168, 176
Reserve requirements, address on structure
339
Business conditions, national summary (See also Industrial Production)
49, 126, 241, 315, 381, 479, 924
Calvert, Richard W., director, San Antonio Branch,
appointment
48
Capacity utilization in major materials industries, article 564
Central banking, some problems, remarks of Chairman
Burns at International Monetary Conference
417
Central banks, statement of Chairman Burns on termination of official gold transactions agreement
831
Chairman and Deputy Chairman of Federal
Reserve Banks
37, A-101
Chart Book, Board of Governors, revision
832
Check clearing and collection, statement on proposed
legislation affecting
799
Check-credit and credit-card plans at commercial banks,
article
646
Chittin, Reed H., director, El Paso Branch, appointment
48
Clark, Peter B., Class C director and Deputy Chairman,
Chicago, appointment
41
Clausen, A. W., Class A director, San Francisco, election 45
Coleman, John R., Chairman, Philadelphia, designation
40
Commercial banks:
Credit-card and check-credit plans, article
646
Financial Institutions Act of 1973, statement on
proposed legislation affecting
799
Foreign branches of member banks, assets and
liabilities
710
Loans and investments series, revision
831
Time and savings deposits, surveys
261, 493, 724
Commercial paper issued by affiliate of member bank,
amendment and interpretation of Regulation D
375-77,
523, 549, 581, 675, 709, 921
Condition and income reports, availability of tapes with
banking data
380
Construction:
Federal Reserve branch banks, statement on proposed
legislation to increase ceiling on expenditures ... 734
Mortgage, real estate, and construction markets, article 481
Consumer finance:
Consumer protection warranties and Federal Trade
Commission improvements, and "Truth in Savings
Act," statement on proposed legislation
429
Report of National Commission, statement
420
Consumer instalment loans, article on rates
641
Coombs, Charles A., reports on Treasury and Federal
Reserve foreign exchange operations 142, 506, 622, 871
Corporate external financing, recent patterns, article .. 837
Corporations, large manufacturing, new series
731
A 113
Pages
Coyne, Joseph R., Assistant to the Board, appointment 240
Credit (See also Loans):
Automobile credit statistics, 1960-72, revision
240
Bank credit actions taken by Board of
Governors ....,
375, 548, 549, 709, 921
Bank holding companies, extension by
19
Consumer finance (See Consumer finance)
Federal Reserve, extensions by, revisions of Regulation A
313, 353
Mortgage credit and housing markets, statement of
Chairman Burns
658
State and local borrowing anticipations and realizations, article
257
Stocks and bonds (See Stock market credit)
Truth in lending (See Truth in lending)
Credit-card and check-credit plans at commercial banks,
article
646
Curry, Robert E., director, Nashville Branch, appointment
46
Custer, Harley, director, Oklahoma City Branch, appointment
41
Cyrnak, Anthony W., article
329
Daane, J. Dewey:
Foreign exchange markets and U.S. balance of payments, statement
425
Steering committee member for foreign banking study,
announcement
123
Davidson, Linda, article
641
Deck, Beryl, article
336
Denkler, John M., Assistant Controller, appointment . 313
Deposits:
Financial Institutions Act of 1973, statement on
proposed legislation affecting
799
Interest rates (See Interest on deposits)
Nondeposit borrowings of banks, interpretation . . . . 524
Reserve requirements (See Reserve requirements) ..
Revision of series
61
Time and savings deposits, surveys
261, 493, 724
Deputy Chairmen of Federal Reserve Banks
37, A-101
Directors:
Federal Reserve Banks:
Chairmen and Federal Reserve Agents
37, A-101
Class A and Class B, elections
43
Class C, appointments
38
Deputy Chairmen
37, A-101
List
226
Federal Reserve branch banks:
Appointments
38, 46, 606
List
226
Resignation
606
Discount rates (See Interest rates)
Dividends:
Federal Reserve Banks
35
Member banks
329
Doyle, Daniel M., Deputy Director for Management,
Office of Executive Director, and subsequent Deputy
Managing Director for Operations and Supervision,
appointments
606, 831
Dwyer, Edward J., Class C director and Deputy Chairman, Philadelphia, appointment
40
Earnings and expenses:
Federal Reserve Banks
Member banks, 1972, article
Economic Stabilization Act, statements
on extension
81,
Edmonson, Nathan, article
Electronic funds transfers
608,
Energy supplies and uses, staff economic study
Engstrom, Keith D., Director, Division of Personnel
Administration, appointment
35
329
280
564
874
847
606
A 114
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Pages
Euro-dollar borrowings and foreign branch loans to U.S.
residents by member banks, amendment of Regulations D and M concerning reserves
376, 377, 445, 447
Federal Advisory Council
A-100
Federal fiscal policy, 1965-72, article
383
Federal Open Market Committee:
Appointments
548
Foreign exchange operations, reports 142, 506, 622, 871
Members and staff
A-100
Minutes, 1967, availability
379
Open market operations in 1972, article
405
Policy actions
1 3 , 8 7 , 2 8 6 , 345
435, 513, 574, 665, 739, 804, 884
Regulation and rules, amendments
99, 298, 449
"Swap" arrangements
548
Federal Reserve Act, statement on proposed amendments 734
Federal Reserve and Treasury reports, foreign exchange
operations
142, 506, 622, 871
Federal Reserve Banks:
Branches (See Branch banks)
Chairmen and Deputy Chairmen
37, A-101
Cleveland Reserve Bank, transfer of part of territory
to Cincinnati and Pittsburgh Branches
549
Delegation by Board of certain authority to, amendment of rules
103, 298, 355
Directors (See Directors)
Discount rates (See Interest rates)
Earnings and expenses
35
Extensions of credit, revisions of Regulation A 313, 353
Federal Open Market Committee, amendment of regulation and rules relating to open market operations 99
Lending functions, a history, new publication by
Howard H. Hackley
923
Presidents and First Vice Presidents:
Black, Robert P., President, Richmond, appointment
606
Heflin, Aubrey N., President, Richmond, death .
35
Latham, Earle O., First Vice President, Boston,
retirement
375
List
A-101
Mcintosh, James A., First Vice President, Boston,
appointment
375
Security devices, minimum, and procedures, revision
of Regulation P
746, 777
U.S. Govt, obligations, authority to purchase directly
from Treasury, statement on proposed extension.. 734
Federal Reserve notes, interest paid to Treasury
35
Federal Reserve System (See also Board of Governors):
Admissions of State banks to membership
125, 314
380, 479, 549, 609, 710, 777, 834, 923
Auditing, statement on proposed legislation
734
Check clearing and collection, statement on proposed
legislation affecting
799
Construction and renovation of branch bank buildings,
statement on proposed legislation to increase ceiling
on expenditures
734
Labor Relations Panel, change in membership
240
Objectives and responsibilities, excerpt from address
of Chairman Burns
655
Payrolls, joint experiment with Air Force and Treasury
to automate Govt, payrolls, and statement concerning electronic funds transfers
608, 874
"Swap" arrangements
548
Feldberg, Chester B., Assistant Secretary and subsequent
Secretary of the Board, appointments
240, 375
Fieleke, Norman S., Assistant Adviser, Division of International Finance, temporary appointment
709
Finance bills, reserve requirements against amendment
and interpretation of Regulation D
375-77,
523, 549, 581, 675, 709, 921
Financial developments, quarterly reports
toCongress
51, 317, 551, 779
Pages
Financing, article on recent patterns of corporate external
financing
837
Fiscal policy, Federal, 1965-72, article
383
Foreign banking and financing corporations, interpretation
104, 179, 449, 541
Foreign banking study, Board announcement of review 123
Foreign branches of member banks:
Assets and liabilities
710
Reserve requirements, amendment, Regulations D and
M
445, 447
Foreign credit restraint program guidelines:
Amendments
607
Interpretations
123, 378, 832
Revised, publication
123
Foreign currency arrangements (See " S w a p " arrangements)
Foreign exchange:
Markets, statements on recent
developments
425, 508, 879
Operations, Treasury and Federal Reserve,
reports
142, 506, 622, 871
Foreign operations of member banks, policy statement
on availability of information to facilitate supervision,
interpretation
449, 541
Foster, Joseph B., director, Detroit Branch, appointment 47
Franco, Michael J., director, Jacksonville Branch, appointment
46
Franklin, William H., Chairman, Chicago, designation 41
Garwood, Griffith L., Adviser, Division of Supervision
and Regulation, appointment
Gehman, Clayton, staff economic study
Gold transactions, statement on termination of official
agreement
Goodfellow, Harry S., director, Seattle Branch, appointment
Gramley, Lyle E., Deputy Director, Division of Research
and Statistics, appointment
Grymes, Douglas, director, Pittsburgh Branch, appointment
Guy, Edward G., Deputy General Counsel, Federal Open
Market Committee, appointment
Hackley, Howard H.:
Assistant to the Board, retirement
Lending Functions of the Federal Reserve Banks: A
History
Halley, Harry J., Assistant Controller, resignation . . . .
Halverson, Jerry A., director, Pittsburgh Branch, appointment
Handler, Ruth, director, Los Angeles Branch,
resignation
Harrison, C. Bennett, director, Memphis Branch, appointment
Hart, John J., Special Assistant to the Board, appointment
Hassler, John H., Class A director, Philadelphia, election
Hayes, Alfred, Steering committee member for foreign
banking study, announcement
Heflin, Aubrey N., President, Federal Reserve Bank of
Richmond, death
Henry, George B., Associate Adviser, Division of International Finance, appointment
Herrick, Thomas W., Class B director, Dallas, election
Hersey, A. B., Senior Adviser, Division of International
Finance, retirement
Holland, Robert C.:
Financial Institutions Act of 1973, statement on
proposed legislation
Member of Board of Governors, appointment
Holley, Jeanne L., director, Memphis Branch, appointment
240
847
831
48
831
40
548
375
923
313
46
606
47
606
43
123
35
709
44
478
799
478
41
A 115
INDEX TO VOLUME 59
Holmes, Alan R., article
Housing:
Mortgage, construction, and real estate markets,
article
Mortgage credit and housing markets, statements ..
Staff study
Hull, David, article
Pages
405
Income and expenses (See Earnings and expenses)
Industrial production:
Board release replacing National Summary of Business
Conditions ... 479, 480, 550, 610, 711, 778, 835,
Combination of releases
Expansion, article
Interest on deposits:
Financial Institutions Act of 1973, statement on
proposed legislation affecting
Negotiable orders of withdrawal (NOW's) against interest-bearing savings accounts, statement and
amendment of Regulation Q permitting such accounts in member banks in Massachusetts and New
Hampshire
276,
Nondeposit borrowings of member banks, meaning of
"bank" as used in exemption from Regulation Q,
interpretation
Time and savings deposits, maximum permissible
rates:
Flexible authority for Federal supervisory agencies
to set, statement on extension
Increase, amendment of
Regulation Q
521, 547, 582,
Time deposits:
Payment before maturity, amendment of Regulation
Q
521,547,581,607,675,709,
Single maturity, $1,000 or more (but less than
$100,000) with maturity of 4 years or more,
suspension of rate ceiling, limit on amount issued,
and new rate ceiling, amendment of Regulation
Q
521,547,582,608,
Single maturity, $100,000 or more with maturity of
90 days or more, suspension of rate ceiling,
amendment of Regulation Q 375-76, 377, 447,
Interest rates (See also Interest on deposits):
Corporate bonds, article on yields
Federal Reserve Banks, increases
35,
377, 478, 548,
Interpretations:
Acceptances made by State member banks, amount
limitations
Bank holding companies, nonbanking activities 833,
Foreign credit restraint program guidelines 123, 378,
Foreign operations of member banks, statement of
Board policy on availability of information to facilitate supervision
449,
Insurance premium funding programs, independent
broker/dealers arranging credit in connection with
sale of
International arbitrage joint account incidental to securities business abroad
Nondeposit borrowings of member banks, meaning of
"bank" as used in exemption from Regulation Q
Options, put and call, and combination
Options, treatment of simultaneous long and short
positions in margin account
Prepaid finance charges; add-ons and discounts
Reserves against commercial paper of member banks
and their affiliates and proper marginal reserve requirements
Same-day substitution rule for margin securities and
exchange-listed convertible bonds
Special purpose leasing corporations
Truth in lending (Regulation Z)
359,
Investments (See Loans)
481
658
36
641
924
609
611
799
921
524
276
608
759
811
547
336
240
606
450
892
832
541
358
179
524
525
358
676
523
524
104
526
Pages
Jackson, Jack B., Class B director, New York, election
43
Jenkins, George W., Class B director, Atlanta, election 44
Johnson, Edwin J., Assistant to the Board, retirement
478
Junz, Helen B., Associate Adviser, Division of International Finance, appointment
709
Kelleher, Joseph E., Assistant to the Board, appointment, and retirement
35,
Kichline, James L., article
Kiley, John N., Jr., Associate Director, Division of
Federal Reserve Bank Operations, retirement
Killefer, Tom, director, Detroit Branch, appointment..
Kreimann, Walter W., Director, Division of Administrative Services, appointment
Kudlinski, James R., Assistant Director, Division of
Federal Reserve Bank Operations, appointment
Labor Relations Panel, Federal Reserve System, change
Ladd, Ernest, F., Jr., director, New Orleans Branch,
appointment
Latham, Earle O., First Vice President, Boston, retirement
Laub, P. Michael, article
Lawrence, John, Deputy Chairman, Dallas, appointment
Lawrence, Robert J., Associate Adviser, Division of
Research and Statistics, appointment
Legislation:
Auditing of Federal Reserve by General Accounting
Office, statement on proposed legislation
Budget control, statement on proposed congressional
review
Consumer finance, statement on proposed legislation
Economic Stabilization Act, statements on proposed
extension
81,
Federal Reserve System expenditures for construction
and renovation of branch bank buildings, statement
on proposed legislation to increase ceiling
Financial Institutions Act of 1973, statement on
proposed legislation
Interest or dividend rates payable on time deposits of
less than $100,000 with maturities of 4 years or
more, limitation pursuant to P.L. 93-123
Interest rate ceilings on deposits, flexible authority for
Federal supervisory authorities to set maximum,
statement on proposed extension
Negotiable orders of withdrawal (NOW's), statement
on proposed legislation, and amendment of Regulation Q
Par Value Modification Act of 1972, statements on
proposed amendment
168,
U.S. Govt, obligations, authority of Reserve Banks to
purchase directly from Treasury, statement on
proposed extension
Loan commitments, letter sent to certain State member
banks by Board of Governors
Loans (See also Credit):
Bank lending practices, 1972, article on changes ...
Commercial bank loans and investments series, revision
Consumer instalment, article on rates
Financial Institutions Act of 1973, statement on
proposed legislation affecting
Stocks and bonds (See Stock market credit)
Lucero, Edward R., director, Denver Branch, appointment
Lumpkin, John H., Class A,director, Richmond, election
Lyons, James E., director, Jacksonville Branch, appointment
478
336
478
41
35
606
240
47
375
336
42
478
734
171
429
280
734
799
81 1
276
276
176
734
313
501
831
641
799
41
43
40
A 116
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Pages
Mcintosh, James A., Director of Division of Personnel
Administration, resignation, and appointment as First
Vice President, Boston
375
MacLaury, Bruce K., Steering committee member for
foreign banking study, announcement
123
McPherson, Rene C., Class B director, Cleveland, election
43
McWhirter, E. Maurice, Associate Director, Division of
Federal Reserve Bank Operations, appointment
606
Mallinson, Eugenie, article
731
Margin account, treatment of simultaneous long and short
positions in, with respect to options, interpretation.. 358
Margin requirements:
Delegation of authority, amendment of rules regarding 449
Insurance premium funding programs, independent
broker/dealers arranging credit in connection with sale
of, interpretation
358
Options, put and call and/or combinations, amendment
of Regulations G, T, and U, and interpretation of
Regulations T and U
447, 525
Options, treatment of simultaneous long and short
positions in, interpretation
358
Over-the-counter margin stocks list, changes
380
Same-day substitution rule for margin securities and
exchange-listed convertible bonds, interpretations ... 524
Mayer, Oscar G., Class B director, Chicago, election
44
Melnicoff, David C., Managing Director for Operations
and Supervision, appointment
831
Member banks (See also National banks):
Branches (See Branch banks)
Foreign operations, policy statement on availability of
information to facilitate supervision, interpretation
449, 541
Income and expenses, 1972, article
329
Reserve requirements (See Reserve requirements)
Reserves and deposits, revision of series
61
State member banks (See State member banks)
Milliken, Frank R., Class C director and Deputy Chairman, New York, appointment
40
Minami, Warren N., Assistant Director, Division of Data
Processing, appointment
606
Mitchell, George W.:
Electronic funds transfers, statement
874
Federal Reserve Act, proposed amendments, statement
734
Interest rate ceilings on deposits, flexible authority for
Federal supervisory authorities to set maximum,
statement on proposed extension
276
Negotiable orders of withdrawal (NOW's), statement 276
Steering committee member for foreign banking study,
announcement
123
Vice Chairman of Board of Governors, designation. 375
Money stock measures, revision of series
61
Money supply in conduct of monetary policy, letter of
Chairman Burns to Senator Proxmire
791
Morales, Pete, Jr., director, San Antonio Branch, apment
42
Mortgage markets (See Housing)
Mutual fund shares, credit on shares and insurance,
interpretation
358
National banks:
Financial Institutions Act of 1973, statement on
proposed legislation affecting
Foreign activities of member banks:
Reserve requirements, amendment of Regulations D
and M
445,
Policy statement on availability of information to
facilitate supervision, interpretation
449,
National summary of business conditions (See also Industrial production)
49, 126, 241, 315, 381,
Negotiable orders of withdrawal (NOW's),
276,
799
447
541
479
921
Pages
Nesbitt, Donald R., director, Buffalo Branch, appointment
40
Nicoll, John, Assistant General Counsel of Board and
of Federal Open Market Committee, appointments
240, 548
Nissen, Anton, article
61
Nonmember banks, Board action regarding special marginal reserves on large certificates of deposit held by 921
O'Connell, Thomas J., General Counsel, Federal Open
Market Committee, appointment
Oehmann, Andrew F., Special Assistant to General
Counsel, appointment
Oliver, John T., director, Birmingham Branch, appointment
Operations subsidiaries of member banks, interpretation
Over-the-counter securities (See Stock market credit)
Owen, Edward F., director, Omaha Branch, appointment
Partee, J. Charles, Managing Director for Research and
Economic Policy, appointment
548
240
46
523
42
831
Payrolls:
Electronic funds transfers, statement
874
U.S. Govt., joint experiment to automate
608
Person, Robert T., Deputy Chairman, Kansas City,
appointment
,
41
Peters, Bookman, director, Houston Branch, appointment
48
Phillips, James E., Class A director, San Francisco,
election
45
Pickering, Margaret H., article
731
Pierce, James, Associate Director, Division of Research
and Statistics, appointment
831
Pierce, W. M., director, Little Rock Branch, appointment
41
Plotkin, Robert S., Assistant General Counsel, appointment
240
Policy actions, Federal Open Market Committee.... 13, 87,
286, 345, 435, 513, 574, 665, 739, 804, 884
Presidents of Federal Reserve Banks:
Black, Robert P., Richmond, appointment
606
Heflin, Aubrey N., Richmond, death
35
Price developments, recent, article
129
Pruitt, Eleanor M., article
257
Publications of Board of Governors:
In 1973:
Annual Report, 1972
380
Banking data on Reports of Condition and Reports
of Income and Dividends, availability on tapes
380
Federal Reserve Staff Study: Ways to Moderate
Fluctuations in Housing Construction
36
Industrial production statistical release, combination
of releases
609
Lending Functions of the Federal Reserve Banks:
A History, by Howard H. Hackley
923
Monthly Chart Book, revision
832
Voluntary Foreign Credit Restraint Guidelines,
revised
123
List of available publications
A-102
Puckett, Richard H., article
501
Real estate (See Housing)
Record of policy actions of Federal Open Market Committee
13, 87, 286, 345, 435, 513
574, 665, 739, 804, 884
Regulations, Board of Governors:
A, Advances and Discounts by Federal Reserve Banks:
Revisions
313, 353
D, Reserves of Member Banks:
Bank credit actions of Board, announcements 375-77,
548, 549, 709, 921
INDEX TO VOLUME 59
Pages
Regulations, Board of Governors—Continued
D, Reserves of Member Banks—Cont.
Commercial paper issued by affiliate of member
bank, amendments and interpretation ...375-77, 523,
549, 581, 675, 709, 921
Demand deposits, gross, definition, amendment .. 892
Demand deposits, net, above first $2 million, increase, amendment
521, 548
Euro-dollar borrowings, reduction,
amendment
375-77, 445
Finance bills not eligible for discount, requirements
against outstanding bills, amendments and interpretation .... 375-77, 523, 549, 581, 675, 709, 921
Marginal reserve requirements against certain time
deposits and application to certain deposits formerly exempt, establishment, increase, and reduction, amendments and interpretation
375-77,
445, 523, 549, 581, 675, 709, 921
Delegation of authority, amendment of rules ....103, 298,
355,449, 811
Federal Open Market Committee, amendment of regulation and rules
99
G, Securities Credit by Persons Other Than Banks,
Brokers, or Dealers:
Delegation of authority, amendment of rules regarding
449
Extension of credit under, amendment
746
Options, put and call, or combination, loan value,
amendment
447
J, Collection of Checks and Other Items by Federal
Reserve Banks:
Electronic funds transfers, proposal for revision to
accommodate, statement
874
K, Corporations Engaged in Foreign Banking and
Financing Under the Federal Reserve Act:
International arbitrage joint account incidental to
securities business abroad, interpretation
179
Policy statement on availability of information to
facilitate supervision, interpretation
449, 541
Special-purpose leasing corporations, interpretation 104
M, Foreign Activities of National Banks:
Policy statement on availability of information to
facilitate supervision, interpretation
449, 541
Reserve requirements, amendment
.445, 447
P, Minimum Security Devices and Procedures for
Federal Reserve Banks and State Member Banks:
Clarification of standards, revision
746, 777
Q, Interest on Deposits:
Negotiable orders of withdrawal (NOW's) against
interest-bearing savings accounts, amendment permitting such accounts in member banks in Massachusetts and New Hampshire
921
Nondeposit borrowings of member banks, meaning
of "bank" as used in exemption from regulation,
interpretation
524
Time and savings deposits, maximum permissible
rates, increase, amendments
521, 547, 582, 608
Time deposits:
Payment before maturity, amendments
521, 547
581, 607, 675, 709, 749
Single maturity, $1,000 or more (but less than
$100,000) with maturity of 4 years or more,
suspension of rate ceiling, limit on amount
issued, and new rate ceiling, amendments .. 521,
5 4 7 , 5 8 2 , 6 0 8 , 811
Single maturity, $100,000 or more with maturity
of 90 days or more, suspension of rate ceiling,
amendment
375-76, 377, 447, 547
Rules of Organization and Rules of Procedure,
revisions
293, 295
T, Credit by Brokers and Dealers:
Delegation of authority, amendment of rules
regarding
449
A 117
Pages
Regulations, Board of Governors—Continued
T, Credit by Brokers and Dealers—Cont.
insurance premium funding programs, independent
broker/dealers arranging credit in connection with
sale of, interpretation
358
Options, put and call, and/or combination, loan
value, amendments and interpretations
447, 525
Options, treatment of simultaneous long and short
positions in margin account with respect to, interpretation
358
Same-day substitution rule for margin securities and
exchange-listed convertible bonds, interpretations 524
Securities credit transactions, amendment regarding
special cash account
19
U, Credit by Banks for the Purpose of Purchasing or
Carrying Margin Stocks:
Delegation of authority, amendment of rules regarding
449
Options, put and call, and/or combination, loan
value, and definition of stock, amendments and
interpretation
447, 525
X, Rules Governing Borrowers Who Obtain Securities
Credit:
Delegation of authority, amendment of rules regarding
449
Y, Bank Holding Companies:
Nonbanking activities:
Armored car services, no action taken
833
Courier service business, amendment, interpretation and statement
833, 892
Underwriting credit life insurance and credit accident and health insurance directly related to
extensions of credit, amendment
19
Z, Truth in Lending:
Amendments
522,549, 582
Interpretations
359, 526, 676
Reichel, John, director, Helena Branch, appointment..
47
Reserve requirements (See also Reserves):
Financial Institutions Act of 1973, statement on
proposed legislation affecting
799
Member banks:
Bank credit actions of Board, announcements 375-77,
548, 549, 709, 921
Commercial paper issued by affiliate of, amendment
and interpretation of Regulation D
375-77, 523,
5 4 9 , 5 8 1 , 6 7 5 , 709
Demand deposits, gross, definition, amendment of
Regulation D
892
Demand deposits, net, above first $2 million, increase, amendment of Regulation D
521, 548
Euro-dollar borrowings, reduction, amendment of
Regulation D
375-77, 445
Finance bills not eligible for discount, requirements
against outstanding bills, amendment and interpretation of Regulation D
375-77, 445,
523, 549, 581, 675, 709, 921
Marginal requirements against certain time deposits
and application to certain deposits formerly exempt, establishment, increase, and reduction,
amendment and interpretation of Regulation
D
375-77,
445, 523, 549, 581, 675, 709, 921
National banks, foreign activities, amendment of
Regulation M
445, 447
Structure, address of Chairman Burns
339
Reserves, member banks (See also Reserve requirements):
Revision of series
61
Robertson, James L., Vice Chairman of Board of Governors, resignation
375
Rockefeller, David C., Class A director, New York,
election
43
Rogers, Nat S., director, Houston Branch, appointment
48
A 118
FEDERAL RESERVE BULLETIN • DECEMBER 1973
Pages
Scanlon, Martha Strayhorn, articles
261, 493, 724
Securities (See also U.S. Govt, securities):
Eligibility for extensions of credit by Reserve Banks,
revision of Regulation A
313, 353
Stocks and bonds (See Stock market credit)
Seiders, David, article
646
Shepard, Horace A., Chairman, Cleveland, designation
40
Shuchter, Claude. F., director, Buffalo Branch, appointment
46
Singletary, Otis A., Class C director, Cleveland, appointment
40
Smith, David M., Class A director, Minneapolis, election44
Smith, Tynan, Secretary of the Board, retirement
375
Staff economic studies:
U.S. energy supplies and uses
847
Summaries
140, 327, 403, 562
State and local borrowing anticipations and realizations,
article
257
State member banks:
Acceptances by, amount limitations, interpretation .. 450
Admissions to membership in Federal Reserve
System
125, 314, 380, 479, 549, 609,
710, 777, 834, 923
Loan commitments, letter sent by Board of
Governors
313
Mergers (See Bank Merger Act)
Security devices, minimum, and procedures, revision
of Regulation P
746, 111
Statements to Congress (includes reports and letters):
Auditing of Federal Reserve by General Accounting
Office, proposed legislation
734
Consumer finance:
Consumer protection warranties and Federal Trade
Commission improvements, and "Truth in Savings Act," proposed legislation
429
Report of National Commission, comments concerning
420
Economic Stabilization Act, proposed extension.. 81, 280
Economy, condition
164, 567
Electronic funds transfers
874
Federal budget, congressional review and control,
proposed legislation
171
Federal Reserve System expenditures for construction
and renovation of branch bank buildings, proposed
increase in ceiling
734
Financial developments, quarterly reports to Congress:
Q-4, 1972
51
Q - l , Q-2, and Q-3, 1973
317, 551, 779
Financial Institutions Act of 1973, proposed legislation
affecting loan and investment powers of commercial
banks and thrift institutions, interest ceilings, deposit
and check powers, and reserve requirements
799
Foreign exchange markets and U.S. balance of payments, recent developments
425, 508, 879
Interest rate ceilings on deposits, flexible authority for
Federal supervisory authorities to set maximum,
proposed extension
276
Money supply in conduct of monetary policy
791
Mortgage credit and housing markets
658
Negotiable orders of withdrawal (NOW's)
276
Par Value Modification Act of 1972, proposed
amendment
168, 176
U.S. Govt, obligations, authority of Reserve Banks to
purchase directly from Treasury, proposed extension 734
Stewart, Robert H., Ill, Class A director, Dallas, election
44
Stock market credit:
Corporate bonds, yields on recently offered bonds,
article
336
Delegation of authority, amendment of rules regarding
449
Extension of credit under Regulation G, amendment 746
Pages
Stock Market Credit—Continued
Insurance premium funding programs, independent
broker/dealers arranging credit in connection with
358
sale of, interpretation
Options, put and call, and/or combination, loan value,
amendment of Regulations G, T, and U, and interpretation of Regulations T and U
447, 525
Options, treatment of simultaneous long and short
positions in margin account with respect to interpretation
358
Over-the-counter margin stocks list, availability of list
of changes
380
Same-day substitution rule for margin securities and
exchange-listed convertible bonds, interpretations. 524
Special cash account, amendment of Regulation T . .
19
Strayhorn, Martha (See Scanlon, Martha Strayhorn)
"Swap" arrangements
548
Tables (See list at bottom of p. A-3 for tables published
periodically; see guide at top of p. A-109 for index
to tables published monthly)
Territories of districts and branches, transfer from Cleveland to Cincinnati and Pittsburgh Branches
Thomas, Alvin I., director, Houston Branch, appointment
Thrift institutions:
Electronic funds transfers, statement
Financial Institutions Act of 1973, statement on
proposed legislation affecting
Treasury and Federal Reserve reports, foreign exchange
operations
142, 506, 622,
Treasury Department, joint experiment with Air Force
and Federal Reserve to automate Govt, payrolls . . . .
Truth in lending (Regulation Z):
Amendments
522,549,
Interpretations
359, 526,
Tuttle, Baldwin B., Assistant General Counsel, appointment
549
42
874
799
871
608
582
676
606
U.S. balance of payments:
Articles
243, 713
Foreign credit restraint program (See Foreign credit
restraint program)
Statements
425,508, 879
U.S. Govt, securities, authority of Reserve Banks to
purchase directly from Treasury, statement on
proposed extension
734
Van Sinderen, Alfred W., Class B director, Boston,
election
43
Vaughan, Joseph R., director, Los Angeles Branch, appointment
606
Vinson, Thomas G., director, Little Rock Branch, appointment
47
Voluntary foreign credit restraint program
f. .123, 378,
607, 832
Voss, Tom G., director, Louisville Branch, appointment
47
Wait, Newman E., Jr., Class A director, New York,
election
Wasson, Field, director, Little Rock Branch, appointment
Weigel, Wm. E., Class A director, St. Louis, election
Weir, Osby L., Class B director, Richmond, election
Whitwam, Robert C., director, Seattle Branch, appointment
43
47
44
43
48
INDEX TO VOLUME 59
Pages
Wiles, William W., Assistant Director, Division of
Supervision and Regulation, appointment
478
Wood, Ralph C., Advisor, Division of International Finance, retirement
478
A 119
Pages
Woodard, W. Bryan, director, Nashville Branch, appointment
46
Yarnall, Sam I., Class A director, Atlanta, election ..
44
BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES
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Oklahoma City
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THE FEDERAL RESERVE SYSTEM
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Legend
Boundaries of Federal Reserve Districts
Boundaries of Federal Reserve Branch Territories
© Board of Governors of the Federal Reserve System
® Federal Reserve Bank Cities
• Federal Reserve Branch Cities
• Federal Reserve Bank Facilities