Full text of Federal Reserve Bulletin : April 1972

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F e d e r a l R e s e rv e

B u lle t in
APRIL 1972

*******
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BOARD OF GOVERNORS ■ THE FEDERAL RESERVE SYSTEM ■ WASHINGTON, D.C.




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FEDERAL RESERVE BULLETIN
C

O

N

T

E

N

T

S

NUMBER 4 □ VOLUME 58 □ APRIL 1972

325

U.S. Balance of Payments and Investment Position

340

Open Market Operations and the Monetary and Credit Aggregates
— 1971

363

Changes in Time and Savings Deposits at Commercial
Banks, October 1971-January 1972

375

Changes in Bank Lending Practices, 1971

380

Statement to Congress

390

Record of Policy Actions of the Federal Open Market Committee

398

Law Department

431

Announcements

432

National Summary of Business Conditions
Financial and Business Statistics

A
1
A 3
A 3
A 4
A 74

Contents
Guide to Tabular Presentation
Statistical Releases: Reference
U.S. Statistics
International Statistics

A 100

Board of Governors and Staff

A 102

Open Market Committee and Staff; Federal Advisory Council

A 103

Federal Reserve Banks and Branches

A 104

Federal Reserve Board Publications

A 108

Index to Statistical Tables
Map of Federal Reserve System on Inside Back Cover

EDITORIAL COMMITTEE
Charles Molony
Robert C. Holland
Kenneth B. Williams

J. Charles Partee
Robert Solomon
Ralph C. Bryant

Elizabeth B. Sette

The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­
torial 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.




U.S. Balance of
Payments and
Investment Position
THE EXTENT of the fundamental disequilibrium in the U.S.

balance of payments was dramatically exposed last year when
the trade balance worsened abruptly. At the same time
the outflow of private capital increased to mammoth pro­
portions. Although over-all deficits had persisted for many
years, the official settlements balance had been held within
a relatively narrow band in the 1960’s. In the early years of
the decade, a strong trade balance served to offset growing
outflows of capital. After the m id-1960’s official restrictions
on outflows of U.S. private capital, together with large in­
flows of foreign private long-term and liquid capital, masked
the effects of a declining trade surplus and even produced
official settlements surpluses in 1968 and 1969.
Increasing stresses became evident in 1970, when the eas­
ing of monetary policy in the United States, to cope with a
deepening recession, led to massive repayments by U.S.
banks of their borrowings in the Euro-dollar market— with
an adverse effect on the official settlements balance far ex­
ceeding the beneficial effects of a temporarily improved trade
balance. Before many months of 1971 had gone by, market
participants recognized that an impasse had been reached
and that there would almost certainly have to be a decisive
change in the exchange rates of the dollar against foreign cur­
rencies. The vast speculative flows that ensued brought mat­
ters to a head, triggering the actions that the President took
on August 15.

326

R E V A LU A T IO N S OF M A JO R C U R R E N C IES
PER CENT

FRANC

GUILDER

STERLING

LIRA

R e v a lu a tio n s are calcu lated fro m new
c entral rates an d p arities in effect on
M ay 1, 1971.
* F or w e ig h ted a v erag e s, w eig h ts
are 1970 sh ares o f each c o u n try in
total trad e o f G ro u p -o f-T en co u n trie s
(includ es U .S .) plu s S w itzerlan d .

DEVELOPMENTS IN 1971

O VER ALL BALANCES
BILLIONS OF DOLLARS

1968_________ 1989_________ 1970_________ 1971

1E x c lu d e s S D R a llo catio n s.
Q u a rte rly d a ta at seaso n ally a d ­
ju sted an n u al rates.




FEDERAL RESERVE BULLETIN □ APRIL 1972

A detailed review of the hectic exchange market activity
last year was published in the article on foreign exchange
operations in the March B u lle t in . It is important to note
that one result of the suspension of the convertibility of the
dollar in August was a general recognition that fundamental
improvement of the U.S. balance of payments could not
be secured by a few ad hoc adjustments of the exchange rates
of those countries most obviously in surplus, or by a uniform
devaluation of the dollar against all currencies. What was
needed was a coordinated multilateral move that would take
into account the differing balance of payments situations of
different countries, some in fundamental surplus to a greater
or lesser degree, and some in basic deficit. Successful nego­
tiation of such a realignment in the Smithsonian meeting of
December 17 and 18, 1971, was a remarkable achievement,
and the eventual effects on trading positions of the relative
changes arrived at (see accompanying chart) should go a long
way toward restoring equilibrium in world trade and pay­
ments.
On any basis of measurement the U.S. balance of payments
deficit was extraordinarily large in 1971. The surplus on trans­
actions in goods and services dropped to less than $1 billion
while the identified outflow for remittances and pensions,
U.S. Government grants and capital, and private long-term
capital rose to a record $10 billion. Thus, the deficit on cur­
rent account and long-term capital exceeded $9 billion, after
having averaged less than $2.5 billion since 1965 and less
than $1 billion in the early I960’s. In addition, recorded out­
flows of short-term capital of more than $10 billion and un­
recorded net payments approaching $11 billion raised the
official settlements deficit (before crediting the Special Draw­
ing Rights allocation of $0.7 billion) to $30.5 billion.
A part of this deficit was financed by the use of U.S. inter­
national reserves, which were drawn down by $3.1 billion;
this reduced U.S. reserve assets to $ 12.1 billion by the end of the
year. By far the greater part of the deficit was financed by
increases in foreign official reserve holders’ claims against
the United States. These grew by $27.4 billion in the year and
totaled nearly $52 billion by year-end.
An extraordinary outpouring of capital from the United
States dominated the balance of payments last year. Ag­
gregate net outflows of private capital, both those recorded
and those believed to be reflected in the residual errors and

U.S. BALANCE OF PAYMENTS
M A JO R C O M P O N E N T S
O FF IC IA L S E T T L E M E N T S B A L A N C E

327

omissions in the accounts, exceeded $24 billion, com­
pared
with about $8 billion in 1970. Recorded outflows of
4
U.S. private capital exceeded $9.5 billion, reaching a peak
in the period of heightened speculation in the third quarter.
This was an increase of about $2.5 billion over the preceding
year. Inflows of foreign capital adding to nonliquid foreign
private assets in the United States shrank to under $2 bil­
lion, less than half the inflow of the previous year. As in 1970,,
there was a large outflow of foreign liquid funds— nearly $7
billion— reducing U.S. liquid liabilities to private foreigners,
especially in the form of U.S. banks’ borrowings from the
Euro-dollar market. Finally, a major adverse flow of capital
was represented in the errors and omissions item— which may
have included as much as $10 billion of various types of
flows responding to interest rate differentials or stimulated

B IL U O N y iM jO U A R S

TABLE 1
U.S. BALANCE OF PAYMENTS, 1960-71
In billions o f dollars
Line

Item

1960-64
average

1965-69
average

1970

1971

1

Exports o f goods and services 1....................................................................................
M erchandise, excluding m ilitary................................................................................
M ilitary sales.................................................................................................................
Investment income 2.....................................................................................................
O ther services.................................................................................................................

31.3
21.7
.6
5.1
4 .0

47.0
31.3
1.1
8.6
6.0

62.9
42.0
1.5
11.4
8.0

65.9
42.8
1.9
12.7
8.5

2

Im ports o f goods and services 1....................................................................................
M erchandise, excluding m ilitary................................................................................
M ilitary expenditures...................................................................................................
Investment income 2
O ther services.................................................................................................................

-2 5 .4
-1 6 .2
-3 .0
- 1 .2
-5 .0

-4 2 .6
-2 8 .5
- 4 .1
-2 .8
- 7 .2

-5 9 .3
-3 9 .9
- 4 .9
- 5 .2
-9 .4

-6 5 .2
-4 5 .6
-4 .8
-4 .8
-1 0 .0

3

Balance on goods and services 1......................................................................................
M erchandise, excluding m ilitary................................................................................
Military sales and expenditures..................................................................................
Investment income 2.....................................................................................................
O ther services.................................................................................................................

5 .9
5.4
- 2 .4
3.9
- 1 .0

4 .4
2.8
- 2 .9
5.7
- 1 .2

3 .6
2.1
-3 .4
6.2
- 1 .4

.7
- 2 .9
- 2 .9
' 7,9
- 1 .5

4
5
6

Remittances and pensions, n e t......................................................................................
U.S. G ovt, grants and capital 3, n e t.............................................................................
Long-term private capital, n e t........................................................................................

-.7
-2 .9
-2 .9

-1 .1
- 3 .7
- 1 .8

- 1 .4
-3 .8
-1 .5

- 1 .5
- 4 .4
-4 .1

7

Balance on current account and long-term capital (lines 3 through 6 )...................

-.7

- 2 .2

-3 .0

-9 .3

8
9

N onliquid short-term private capital, n e t...................................................................
Errors and om issions.......................................................................................................

-1 .1
-1 .0

-.2
-1 .0

-.5
-1 .1

- 2 .5
- 1 0 .9

10

Net liquidity balance (excluding SDR allocations) (lines 7 through 9 ).................

-2 .8

-3 .4

-4 .7

-2 2 .7

11

Liquid private capital, n e t...............................................................................................

.6

3.4

-6 .0

-7 .8

12

Official settlements balance (excluding SDR allocations) (lines 10 and 11).........

- 2 .2

-.0

-1 0 .7

-3 0 .5

Financed by change in:
U.S. official reserve assets (excluding SDR allocations), decrease ( - f ) ........
U.S. liabilities to foreign official agencies, increase ( + ) ..................................

1.0
1.2

-.0
.1

3.3
7.3

3.1
27.4

M EM O :
SD R allocations..................................................................................................................................................................................
Balance including SD R allocations
N et liquidity balance.......................................................................................................................................................................
Official settlements balance...........................................................................................................................................................
1 Excluding transfers under military grants.
2 Excluding undistributed earnings o f subsidiaries.
3 Includes nonliquid liabilities to other than official reserve holders.




.9

.7

—3.8
—9 .8

—22.0
—29.8

N o t e .— Details may not add to totals because o f rounding. D ata
are from U.S. D ept, o f Commerce, Bureau o f Economic Analysis.

328

FEDERAL RESERVE BULLETIN o APRIL 1972

by expectations of exchange rate changes; among such flows
would be unreported shifts in accounts receivable or payable
due to leads and lags in payments for goods and services.
CAPITAL FLOWS
U.S. P R IV A TE C A P ITA L

1968_________ 1969

1970_________ 1971

The increase in recorded outflows of U.S. private capital last
year resulted primarily from stronger foreign demand for
credit from U.S. banks and from shifts in short-term assets
and liabilities of U.S. corporations. In both cases, expecta­
tions of exchange rate changes played a role. On the other
hand, U.S. purchases of foreign securities were smaller than
in many earlier years, and over the year as a whole the net
flow of direct-investment capital from U.S. corporations
to their foreign affiliates was not much greater than in 1970.
Return flows of direct-investment funds in the last days
of the year offset the sharply higher rates of outflow in the
first three quarters of 1971, which also had probably been in­
fluenced by exchange market uncertainties. Companies ap­
parently did not make great use of the 2-month extension of the
legal deadline for compliance with limits on annual out­
flows.

TABLE 2
PRIVATE CAPITAL FLOWS, RECORDED
In millions o f dollars; outflows from U.S. ( —)
1971
Line

Item

1969

1970

1971
I

II

III

IV
1

(seasonally adjusted)
- 2 ,1 4 9
-5 ,6 8 7

1

U.S. and foreign private capital................................................

8,134

- 7 ,9 9 9

-1 4 ,4 5 0

- 4 ,4 1 5

2
3
4
5
6
7

U.S. private cap ital.....................................................................
Direct investment.....................................................................
Net purchases o f foreign securities......................................
Claims reported by U.S. banks............................................
Short-term assets related to direct investments 1.............
O ther..........................................................................................

- 5 ,4 2 4
- 3 ,2 5 4
- 1 ,4 9 4
-5 5 0
-1 8 7
61

- 6 ,9 1 5
- 4 ,4 4 6
-9 4 2
-9 5 1
-8 4
-4 9 2

- 9 ,5 8 5
-4 ,5 2 5
-9 1 0
-2 .9 6 9
-1 9 5
-9 8 6

- 2 ,2 3 5
- 1 .3 7 0
-3 5 3
-1 3 0
-1 0 9
-2 7 3

-2 ,2 0 1
-1 .3 9 3
-3 8 8
-3 2 8
-3 4
-5 8

-3 ,4 5 5
-1 .4 0 4
-2 4 8
-1 .5 7 8
-4
-2 2 1

- 1 ,6 9 4
-3 5 8
79
-9 3 3
-4 8
-4 3 4

8
9
10
11
12
13

Nonliquid foreign private assets in U .S...................................
Related to U.S. direct investments abroad 2 ....................
U.S. corporate stocks 3 ..........................................................
Other corporate securities (excluding Treasury issues)4..
Foreign direct investment in U .S.........................................
O ther nonliquid assets in U .S .4 ...........................................

4,896
1,730
1,565
518
832
251

5,158
1,975
697
671
969
846

1,840
1,278
836
278
-1 9 2
-3 6 0

535
539
79
163
92
-3 3 8

85
314
-3
-6 4
-1 6
-1 4 6

93
102
231
151
-3 8 8
-3

1,127
323
529
28
120
127

14
15
16
17

Liquid foreign private assets in U .S.........................................
O f foreign commercial b a n k s...............................................
O f other private foreigners....................................................
O f international and regional organizations.....................

8,662
9,166
-4 4 1
-6 3

- 6 ,2 4 2
-6 ,5 0 7
86
179

- 6 ,7 0 5
- 6 .9 0 2
-4 7 8
675

- 2 ,7 1 5
- 3 .0 6 7
72
280

-3 3
-8 4
-1 4 7
198

- 2 ,3 2 5
-2 .1 1 3
-3 6 8
156

- 1 ,6 3 2
-1 ,6 3 8
-3 5
41

M EM O : Capital transactions related to U.S. direct investments
abroad (lines 3, 6, and 9 ) .....................................................

-1 ,7 1 1

- 2 ,5 5 5

- 3 ,4 4 2

-9 4 0

-1 ,1 1 3

- 1 ,3 0 6

-8 3

1 Unexpended proceeds o f the new issues included in line 9, held
abroad.
2 Includes new security issues sold abroad for the purpose o f
financing direct investments plus other long-term borrowing abroad by
U.S. corporations, including some borrowing for other purposes.




-2 ,1 9 9

3 Excludes transactions included in line 9.
4 Includes transactions o f international and regional institutions
other than the IM F.
N o t e .— D ata are from the U.S. Dept, o f Commerce, Bureau o f
Economic Analysis.




U.S. BALANCE OF PAYMENTS

329

Recent estimates of foreign plant and equipment expendi­
tures by U.S. direct-investment affiliates show an increase
of 9 per cent from 1970 to 1971, following a record rise of 21
per cent the year before; a further slowdown to a 7 per cent
rise is projected by the companies for this year. This tapering
off in fixed capital outlays seems to be primarily a reaction to
the general slowing in expansion of activity in foreign coun­
tries and would reduce the demand for financing from U.S.
sources. Retained earnings and other sources of financing
abroad cover a substantial part of these outlays.
Companies— foreign-owned as well as U.S.-owned—
operating in the United States reversed the normal growth in
their short-term debt to foreigners in 1971, and added to their
short-term claims on foreigners. The net shift from 1970 to
1971 in reported short-term corporate capital flows was over
$2 billion, and there was also probably a large unreported
outflow.
Foreign assets of U.S. banks (including U.S. agencies
and branches of foreign banks), together with customers’
funds placed abroad reported by these banks, increased about
$3 billion in 1971. Some of the bank credit outflow was facili­
tated by the statutorily required exemption in November of
export credits from the ceilings on foreign assets established
under the Federal Reserve’s voluntary foreign credit restraint
program. Japan and the United Kingdom each received about
$500 million of the bank-reported outflow; $400 million went
to Canada, which is exempt from the ceilings; and smaller
increases were reported for many other countries.
While a variety of influences operated to enlarge capital
outflows in 1971, the continued large outflow of funds that
reduced U.S. liquid liabilities to private foreigners was pri­
marily a function of the relationships among interest rates.
As had occurred in 1970, interest rates in the Euro-dollar
market were sufficiently above comparable rates in the United
States to cause U.S. banks to run down their borrowings—built
up sharply in 1968-69—from their branches abroad. In 1971
these borrowings were reduced by $4.9 billion, following
a reduction of $6.3 billion the year before; the outstanding
balances, as accounted for in the balance of payments, were
thus cut to only $1.2 billion. Other foreign commercial
banks drew down their U.S. working balances by more than
$2 billion.

330

FEDERAL RESERVE BULLETIN □ APRIL 1972

1 | INTEREST RATES compared

MAR.
JUNE
SEPT.
DEC.
____________________ 1971__________ ________________________

M AR.
1972

JUNE

E u ro -d o lla r rates are w e ek ly averages o f noon bid rates in the L o n d o n m a rk e t. C D rates are
m ed ian offer rates p o sted b y N ew Y ork C ity b a n k s, as o f each W ed n e sd ay . T h e d ifferential is
calcu lated after a d ju stin g the C D rate for the 5 p e r c en t reserv e re q u ire m e n t o n tim e d eposits
at U .S . ban k s.

CURRENT TRANSACTIONS

IN D U S T R IA L PRO DUCTIO N

1968

1869

1970

1971

'72

S easonally ad ju sted O E C D q u arterly
d ata.




The surplus on transactions in goods and services in 1971
was only $0.7 billion, a drop of nearly $3 billion from 1970
and far below the average surplus of $6 billion recorded in
the 1960-64 period. The balance on goods (excluding military)
was a deficit of $3 billion in 1971— the first trade deficit since
1935 and the result of a $5 billion net deterioration from 1970.
This worsening was offset, in part, by a $2 billion improvement
in the surplus on service items, principally because of higher
net income receipts and a reduction in net military expenditures
abroad.
Merchandise trade. The shift in the trade account in 1971
stemmed from only a slight growth in exports and a very
sharp advance in imports; exports in 1971 were only about 2
per cent higher than in 1970 while imports rose by nearly 15
per cent— much faster than the rise in gross national product
in current prices. Because the average price of exports, mea­
sured by unit values, rose by 3 per cent, there was some
reduction in the volume of exports last year. The prices (unit
values) of imports in 1971 rose faster than those of exports
— more than 5 per cent— but the volume of imports rose by
about 9 per cent.
The general weakening of business activity in Europe and
Japan that became evident in 1970, and the moderate recovery
in 1971 in the U.S. economy, were the leading factors in the
change in our trade balance last year. Anticipated or actual do­

U.S. BALANCE OF PAYMENTS

TR A D E BALANCE
C Y C L IC A L LY AD JU STED AN D A C T U A L

..........

BILLIONS

'W M

T h e actu al trad e b alan ce is on a b a l­
ance o f p ay m en ts b a sis. T h e c y c li­
cally ad ju sted b alan ce (F ed eral R e ­
serve e stim ate ) is b a se d on an a s­
sum ptio n o f fu ll em p lo y m e n t in
the U .S . and a b ro a d ; estim ated
effects o f strik es and the S u ez C risis
in 1967 are e lim in a te d .




331

mestic strikes— in particular those affecting the docks, rail­
roads, steel, aluminum, and coal— while causing erratic month­
ly movements in exports and imports, were responsible only in
small part for the pronounced worsening in the trade balance
for the year as a whole. Strikes probably depressed the level
of exports somewhat more than that of imports. Other factors
affecting trade movements in 1971 were anticipation of the
imposition of “ voluntary” controls by foreign governments
on some exports to the United States and the increasing pos­
sibility— confirmed by events— of changes in exchange rates.
In an effort to determine how much of the deterioration in
the trade balance in 1971 reflected longer-run forces, an ex­
tremely rough adjustment to eliminate the effects of strikes
and cyclical conditions here and abroad and of some other
special factors has been made. On this “ adjusted” basis it
appears that there has been a steady deterioration in the U.S.
trade balance since 1967. In each of the years 1965, 1966,
and 1967 the adjusted average trade balance was a surplus of
about $5 billion. (Some investigators, however, find that
there was already an underlying downtrend in that period.)
This adjusted balance shrank to a surplus of about $1.5 billion
in 1968, became negligible in 1969, and turned to a deficit
of about $1 billion in 1970. Last year the deficit on this basis
is estimated to have been more than $3 billion. Thus, the
worsening in the actual balance in 1971 reflected not only
a strong shift in the cyclical position and other transitory
factors but also a continuation of the trend rate of decline
that started in the mid-1960’s.
The U.S. share of world exports to non-U.S. markets fell
markedly in 1971— to about 16.5 per cent— compared with
20.5 per cent in 1960 and about 19 per cent in the m id-1960’s.
Exports of industrial supplies and materials—especially those
of metals—declined sharply, largely offsetting the rise in the
value of exports of agricultural commodities, of commercial
aircraft, and of automotive equipment to Canada.
The rate of growth in economic activity in most foreign
industrial countries flattened out last year. In Japan indus­
trial production expanded by less than 5 per cent from 1970
to 1971 compared with 16 per cent from 1969 to 1970 and an
equally high rate during most of the decade of the 1960’s.
The increase in industrial output in Germany in 1971 was only
about one-third as much as the increase from 1969 to 1970.
Canadian economic activity was more vigorous last year
than in 1970, when the bottom of the recession was reached,

FEDERAL RESERVE BULLETIN □ APRIL 1972

332
TABLE 3

TOTAL PRODUCTION AND EXPORTS OF SELECTED COMMODITIES IN JAPAN AND GERMANY
Based o n q u a n tity d a ta

A nnual average rate o f change
(in per cent)
1965-69

Country and
commodity
Total
pro­
duction

Exports

JAPAN
Television receivers................................................
Cam eras..................................................................
Passenger cars........................................................
T ru ck s.....................................................................
Motorcycles............................................................
Steel.........................................................................

31.9
5.2
39.2
14.9
3.9
18.8

33.7
15.6
49.4
31.3
9 .5
13.2

GERMANY
Passenger cars........................................................
Steel.........................................................................

5.8
5.3

7.3
7.5

1970 exports, selected
commodities

1970-71 i
Produc­
tion for
domestic
use

Produc­
tion for
domestic
use

As per
cent of
produc­
tion

To U.S. as
per cent
o f total
exports

Total
pro­
duction

Exports

30.9
-4 .4
36.8
13.6
.2
20.6

-5 .2
-8 .5
11.4
- .9
14.9
-5 .0

18.5
14.6
67.3
50.9
23.7
35.8

-2 0 .3
- 3 0 .1
- 7 .1
- 7 .1
3.8
-1 4 .5

38.8
48.4
22.4
10.8
55.6
18.9

63.1
29.0
44.8
31.7
63.2
23.9

4.6
4.5

4 .8
-1 0 .4

9 .0
10.0

.8
-1 7 .9

48.4
26.7

35.1
11.5

1971 d a ta p a rtly estim ated .

M E R C H A N D IS E TRA DE
BILLIONS OF DOLLARS

j

: 1§gj1

1
H alf years at seasonally ad ju sted a n ­
nual rates, balan ce o f p ay m en ts basis.




but use of resources was still much below capacity. As domestic
demand weakened in most foreign countries, foreign producers
depended increasingly on selling their output abroad. For
example, while domestic sales of cars, TV receivers, cameras,
and motorcycles in Japan fell sharply from 1970 to 1971,
producers in that country were able to resist production cut­
backs and even to expand output by exporting increased
amounts of these goods. This was also true for German ex­
ports of steel and cars.
The advance in U.S. imports last year was broadly based,
as all major categories of goods— foods, industrial mate­
rials, capital equipment, automobiles, and other consumer
goods— increased over 1970 levels. The greatest increase was
in cars, particularly from Japan. The physical volume of im­
ports of industrial materials rose by nearly 10 per cent even
though the rise in U.S. industrial production during the year
was modest. The rise in imports of materials was concentrated
in steel, petroleum, and lumber. The increase in steel reflected
heavy purchases in anticipation of a possible domestic steel
strike and the greater availability of steel from abroad as
foreign demand slackened. The higher import value for
petroleum stemmed from both increased oil quotas and higher
prices, whereas the large increase in lumber imports was
associated with the strong rise in domestic residential con­
struction.
Most of the deterioration in our trade balance from 1970 to
1971 was with the industrial countries, particularly with




U.S. BALANCE OF PAYMENTS

333

Western Europe and Japan. Our trade deficit with Japan rose
to $3.2 billion in 1971, about 2 Vi times as large as in 1970;
exports declined as a result of the depressed level of eco­
nomic activity in that country while our imports from Japan
rose sharply. Our customary trade surplus with the West
European countries fell to less than $1 billion last year com­
pared with nearly $3 billion in the preceding year.
Services. The surplus on services reached a record $3.5
billion in 1971 compared with $1.5 billion in 1970. The pre­
vious high was $2.2 billion, in 1965. The principal element
in the 1971 improvement was the large increase in income
receipts from U.S. direct investment abroad, including in
particular a large increase in receipts from petroleum com­
panies. As a result of the realignment of exchange rates, local
currency earnings of many foreign affiliates became larger
in terms of dollars, and preliminary reports indicate steppedup remittances to U.S. parent companies at the end of 1971.
Consequently, income receipts from U.S. direct investments
abroad in the fourth quarter of last year were a record-break­
ing $2.2 billion, nearly 50 per cent higher than in the fourth
quarter of 1970.
Income payments to foreigners on their investments and
liquid asset holdings in the United States declined by about
$0.5 billion in 1971, as the effect of the decline in average
interest rates on foreign assets held here more' than offset the
effect of the increase in volume of such assets.
A reduction in net military expenditures abroad by $0.5
billion in 1971 was the result of exceptionally high receipts
from military agency sales. Gross military expenditures abroad
in 1971 were virtually unchanged from 1969 and 1970. Sav­
ings in expenditures from the large withdrawals of troops
from Vietnam and from other countries in Southeast Asia
were largely offset by increased costs in other countries; such
costs more recently have been raised further, in dollar terms,
by the dollar’s depreciation against foreign currencies.
OF

Although it is generally agreed that the realignment of exchange
rates last December should eventually produce a major shift
in the U.S. trade balance— on the order of $7 billion to $8
billion— it is also well known that the initial effects of a de­
valuation are normally adverse for the balance of trade. In the
U.S. case, the usual immediate difficulties are likely to be
magnified by cyclical demand factors here and abroad.




334

FEDERAL RESERVE BULLETIN □ APRIL 1972

Immediate adverse effects from a devaluation occur in
large part because the volume of trade does not respond im­
mediately to price changes. If U.S. exporters maintain their
dollar prices, the lower cost to foreign customers in terms of
their own currencies should stimulate buying and in time
raise the volume of exports enough to produce some increase
in export values in terms of foreign currencies, and a consider­
able increase in terms of dollars. On the import side, if foreign
exporters hold their export prices in their currencies un­
changed, the dollar cost to the U.S. consumer rises; eventually
the lowering of the volume of purchases will reduce aggregate
dollar expenditures on imports. Initially, however, the in­
crease in the aggregate dollar value of imports is likely to
outweigh any favorable impact on exports.
To the extent that import prices in terms of dollars do not
rise because of long-run contractual arrangements, or because
foreign exporters adjust their profit margins rather than raising
their prices by the full amount of the exchange rate changes,
the full impact of the realignment on the volume of imports
will be delayed. Also, imports of the United States, unlike
those of most other countries, are normally invoiced in our own
currency so that a rise in import prices requires some action by
foreign sellers, in contrast to the automatic price increase that
occurs in devaluing countries whose imports are invoiced in
currencies other than their own.
The actual outcome for U.S. trade this year will depend
heavily on conditions of over-all demand here and abroad.
If, as expected, demand conditions in principal foreign mar­
kets improve only slowly, local producers will resist compe­
tition from the United States in their home markets and will
tend to absorb some of the revaluation in order to hold down
prices of exports to the U.S. market. This would occur espe­
cially in cases where the revaluation has been large and a siz­
able portion of the output of an industry is geared to export
markets.
While it is easy enough to identify factors that will retard
improvement in the U.S. trade balance in the short run, there
are other factors that could be advantageous to the U.S. trade
position and should reinforce the effects of the realignment
over a somewhat longer time horizon. The principal potentially
helpful factor is the trend in wages and prices. For some time
before the revaluations, costs and prices in manufacturing
abroad were rising faster than in the United States. The effects

U.S. BALANCE OF PAYMENTS
E X P O R T PRICES
M A N U FA C TU R ED GOODS

1971 p a rtia lly e stim ate d .




335

of these changes in prices here and abroad did not show up until
fairly recently in export prices, but a combination of such on­
going increases in foreign costs with the revaluation effect on
the foreign prices of U.S. goods should act powerfully to bring
the needed changes in various countries’ trade balances, especi­
ally when renewed growth of demand abroad puts greater
pressures on local supplies. Of course, these changes will
also require active policies in the United States to limit price
increases and promote exports. Other countries with large
persistent surpluses will need to consider steps to reinforce
the effects of revaluation— in particular, steps that would lower
barriers to their imports and facilitate a redirection of their
industry from concentration on exports toward providing more
goods and services to the domestic market.
The realignment of exchange rates will have several diverse
effects on the dollar value of service transactions— travel,
transportation, military expenditures, and investment income
returns. About one-third of U.S. travel expenditures abroad are
in European countries where sizable revaluations have oc­
curred; U.S. travel to those countries may drop off, though
some will only be diverted to non-revaluing countries. Foreign
travel to the United States will be encouraged, but the amount
involved is not likely to be great. Net dollar payments for
freight on U.S. imports will probably rise somewhat to cover
foreign currency expenses. As noted earlier, military expendi­
tures abroad, especially those in Germany and Japan, were
already increased in dollar terms in 1971 by the revaluation of
foreign currencies, and they will rise further on that account
this year, as well as because of rising prices abroad. Last year’s
revaluations will tend to raise income receipts this year as
the local currency earnings of U.S. affiliates in many countries
will rise in terms of dollars. On balance, however, the likely
favorable effects of the realignment on income receipts and
foreign travel expenditures may be offset, in part, by the in­
creased costs of maintaining Armed Forces overseas.
The effects of the currency realignment on capital flows
between the United States and foreign countries are especially
conjectural in the period ahead. Short-term capital is ordi­
narily influenced by relative interest costs and yields, but
flows related to precautionary motives are unpredictable.
In the period ahead, the direction of these flows will be in­
fluenced by developments in the current account, as well
as by evidence of the policies adopted by national authori-

336

FEDERAL RESERVE BULLETIN □ APRIL 1972

ties. Flows of longer-term capital into portfolio securities or
direct investments will probably continue to be influenced
mainly by considerations of longer-term economic trends,
although there are also important short-term speculative in­
fluences. A successful realignment and a strong U.S. growth
rate will certainly help to sustain a large continuing inflow
of foreign capital to purchase U.S. securities and expand
direct investments. Some countries have recently eased their
restrictions on capital outflows and this also should support an
investment flow to the United States.
U.S. investments abroad are limited by restrictions instituted
in the 1960’s; so market forces are not fully operative.
In the past few years the evident undervaluation of some cur­
rencies has no doubt encouraged U.S. investments abroad,
either because the cost of acquiring assets in such countries
was low or because undervaluation made a foreign country’s
industry more competitive worldwide. The realignment should
take the edge off this incentive for investment, though U.S.
investors are likely to continue to have a very active interest
in expanding their foreign assets as business activity abroad
recovers.
INTERNATIONAL
INVESTMENT POSITION




The outcome of the U.S. balance of payments is mirrored
in the changes in international assets and liabilities of the
United States, although these assets and liabilities are affected
by such additional factors as retained earnings of direct in­
vestments, changes in market valuations of securities, and
other valuation changes.
At the end of 1970 the excess of U.S.-owned assets in for­
eign countries over foreign-owned assets in the United States
amounted to about $70 billion. By the end of 1971 this excess
was reduced to less than $60 billion. Of course, the net pay­
ments of almost $ 11 billion that went unrecorded in the bal­
ance of payments accounts last year probably consisted pri­
marily of additions to U.S. assets abroad, and these are also
omitted from the statement of the investment balance.
The value of U . S . privately held assets abroad rose about $ 15
billion in 1971. Of this amount, $9.6 billion resulted from net
capital outflows recorded in the balance of payments accounts,
more than $3 billion reflects a rough estimate for reinvested
earnings of foreign affiliates of U.S. companies, and nearly
$2 billion resulted from increases in market values of portfolio
holdings of foreign securities. By far the largest class of U.S.




337

U.S. BALANCE OF PAYMENTS
TABLE 4
INTERNATIONAL INVESTMENT POSITION OF THE UNITED STATES
In billions o f dollars
Item

1950

U.S. assets and investments abroad................................

1960

1969

1970

1971 e

54.4

85.6

158.1

166.6

U.S. private investm ents..................................................

19.0

49.3

110.4

119.9

134.9

Long-term, total..............................................................
Direct investm ents....................................................
Foreign securities.......................................................
Banking claims and o th er........................................

17.5
11.8
4.3
1.4

44.5
31.9
9 .6
3.1

96.3
71.0
18.7
6.6

104.7
78.1
19.6
7 .0

116.0
86.0
22.3
7.6

Short-term, total.............................................................
Reported by banks....................................................
O th e r............................................................................

1.5
.9
.6

4 .8
3.6
1.2

14.1
9 .7
4 .4

15.2
10.8
4 .4

18.9
13.4
5.5

181.0

U.S. Govt, credits and claims 1......................................

11.1

16.9

30.7

32.2

34.0

U.S. monetary reserve assets...........................................

24.3

19.4

17.0

14J

12.1

M onetary g o ld ................................................................

22.8
1.4

17.8
1.6

11.9
5.1

11.1
3.4

10.2
1.9

Foreign assets and investments in U .S............................

17.6

40.9

90.8

97.5

122.5

U.S. liabilities to private foreigners..............................

12.9

28^2

71.4

71^1

69.2

Nonliquid..........................................................................
D irect investments in U .S........................................
U.S. corporate securities..........................................
Corporate and other b o n d s................................
C orporate sto ck s...................................................
O ther long-term liabilities........................................
Short-term reported by nonbanks.........................

8 .7
3.4
3.1
.2
2.9
1.5
.7

19.0
6.9
10.0
.6
9.3
1.6
.6

42.5
11.8
22.9
4.8
18.1
4.8
2.9

48.5
13.2
25.6
6.9
18.7
6.0
3.7

53.3
13.4
30.4
8.6
21.8
5.9
3.6

T o foreign banks (incl. U.S. bank b ran ch es)... .
To o thers.....................................................................

4 .2
2.1
2.1

9.1
4.8
4.3

28.9
23.6
5.3

22.6
17.1
5.5

15.9
10.3
5.6

U.S. liabilities to foreign official accounts...................

4 .7

12.7

19.5

26^4

53.2

Reserve liabilities............................................................
O f U.S. banks.............................................................
O f U.S. G ovt...............................................................

4 .6
2.4
2.2

11.9
4 .0
7.9

17.1
8.5
8.5

24.4
6.5
17.9

51.8
1A
44.4

Nonreserve liabilities o f U.S. Govt. 2 ..........................

.1

.8

2 .4

2 .0

1.4

1 Other th an U.S. monetary reserve assets.
2 Includes small amounts o f liabilities to private foreigners.
e Estimated.
N o t e .— D ata for 1950, 1960, 1969, and 1970 are as published by the Bureau o f Economic Analysis t
U.S. D ept, o f Commerce; data for 1971 are estimates based on capital flows as reported by the BE A
plus rough allowances for reinvested earnings, and changes in market valuations. The basis o f valuation
is as follows: direct investments at book values as appearing, in principle, on the books o f the affiliates
rather than the head offices; securities at m arket values; other assets and liabilities at stated values
in the accounts o f banks and other debtors or creditors. F or more detailed data see Survey o f Current
Business, U.S. Dept, o f Commerce, Oct. 1971. Details may not add to totals because o f rounding.

foreign assets is direct investments, which had a book value
of some $86 billion at the end of 1971, an increase of about
$8 billion for the year.
Foreign assets and investments in the United States jumped
by $25 billion last year to a total of $122 billion. The major
increase was in liabilities to foreign official accounts ($27
billion), reflecting the financing of the over-all deficit. Other
major changes included a decline of $6.7 billion in private
foreign liquid assets in the United States and an increase of
about $5 billion in nonliquid private assets in the United States.
About half of the increase in the value of private nonliquid
assets resulted from rising market values of securities, an­
other $ 1.8 billion resulted from net capital inflows, and a

338

FEDERAL RESERVE BULLETIN □ APRIL 1972

small amount was derived from reinvested profits of foreign
direct investments in the United States.
As a result of the financing of the heavy U.S. deficit last
year, the disparity between the composition of U.S. foreign
assets and liabilities widened further. On the asset side, long­
term private assets and the foreign credits of the U.S. Govern­
ment predominate, accounting for 80 per cent of the total,
whereas on the liability side, liquid private claims on the
United States plus liabilities to foreign official accounts (mainly
liquid) account for 57 per cent of the total. The largest category
of private foreign investment here is portfolio holdings of
U.S. corporate stocks with an estimated market value of nearly
$22 billion at the end of 1971.
RECENT

DEVELOPMENTS




After the Smithsonian agreement of December 18 the exchange
rates of most other countries moved up through the new wider
band around parity to quotations at or near the upper limit of
the band, and then eased downward in late March. A few
countries have added further substantial amounts to their
holdings of dollars in the United States. A number of countries
have taken additional steps to reduce incentives for capital
inflows, ranging from a ban on interest payments on nonresi­
dent deposits to a cash-deposit requirement on certain bor­
rowings from nonresidents, as in Germany. Part of the weak­
ness of the dollar stemmed from large trade deficits— as trade
was probably still being adversely affected by threatened dock
EXCHANGE RATE MOVEMENTS IN 1 9 7 2 : percentage above or
below central rates

A v erag e fo r w eek s e n d in g W ed n e sd ay s. D ashed line in dicates central rates.

U.S. BALANCE OF PAYMENTS

BANK P R IM E LOAN RATES

D ata fro m M o rg a n G u a ra n ty T rust
C o.




339

strikes as well as by some increase in import prices. However,
prior to mid-March there were also occasional bursts of specu­
lation as the volatile market reacted to developments or state­
ments that seemed to threaten the viability of the new exchange
rates.
Several factors have had a calming influence since mid­
March. Especially important has been some firming of U.S.
short-term interest rates relative to those in other major
countries. This tendency toward a convergence of short-term
interest rates has exerted a stabilizing influence partly by less­
ening the incentive for U.S. funds to move abroad, and also
as a portent of further movement in an equilibrating direction.
Also, the passage and signing of the bill changing the par value
of the dollar, and new U.S. initiatives toward establishing a
basis for negotiations to improve international economic
relationships, begun at the Smithsonian meeting, tended to
establish a less volatile market atmosphere.
□

Open Market Operations and the
Monetary and Credit Aggregates—1971
This article is adapted from a report sub­
mitted to the Federal Open M arket Com­
mittee by Alan R . Holmes, Manager of
the System Open M arket Account and
Senior Vice President o f the Federal
Reserve Bank o f New York.
System open market operations encoun­
tered new difficulties in 1971 in pursuing
a monetary policy appropriate to a sluggish
economy still troubled by inflation and a
deep balance of payments deficit. The
operational instruction of the Federal
Open Market Committee (FOMC) to the
Trading Desk at the Federal Reserve Bank
of New York gave important emphasis,
as in 1970, to achieving desired growth
in the monetary and credit aggregates,
with due attention to interest rate devel­
opments. In 1970, it will be recalled,
M j— currency plus adjusted demand de­
posits held by the public—had expanded
at a reasonably steady 6 per cent rate over
the first three quarters, and the fourthquarter slowdown to a 3.4 per cent annual
rate was plausibly attributed to the effects
of the automobile strike. But in 1971
growth in M t varied considerably, al­
though the Committee was willing to
countenance considerable variation in in­
terest rates.
The problem of obtaining a prompt
response in M 1 became apparent early in
1971. Through January and most of Febru­
ary the money supply failed to expand as
rapidly as was required if the Committee’s
desire to make up the fourth-quarter short­
fall was to be realized. Having already
lowered the Federal funds rate from 6 V2
340


per cent to 4% per cent over the fourth
quarter, the Desk pressed nonborrowed
reserves on the banking system until the
rate fell to 3% per cent in the second half
of February. At this point, the money sup­
ply began to grow rapidly. In early April
the Committee called for a firming of the
money market to help curb this expansion.
Growth in M x continued rapid into the
summer, even though the Desk’s reluctant
provision of reserves led to an increase
in the Federal funds rate to 5 Vz per cent
by August. The President’s new econom­
ic program, announced on August 15,
reduced inflationary expectations, and
growth in the money supply slowed mark­
edly over the remainder of the year.
t MONEY SUPPLY AND ADJUSTED
1 BANK CREDIT PROXY
SEASONALLY ADJUSTED ANNUAL RATES OF GROWTH, PER CENT

10
----1—1__ UJ__ La__ LI__ ]_i__ B3 ■
■ 0
'
.
■ I ■■ ■ ■■^■■■■20
A D JU S TE D BANK C R E D IT
PR O XY

Q1
Q2
03
04
Q1
02
03
_____________ 1 9 7 0 ________________________________ 1971

04

341

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

Again, the System stepped up its provision
of nonborrowed reserves, in the process
reducing the Federal funds rate to 3%
per cent by the year-end. Nonetheless,
M 1 did not respond quickly to changes in
open market operations (Chart 1).
The lagged response of M x to open
market operations in late 1970 and
throughout 1971 underscored once again
the complexity of the linkages between
the Desk’s operations, on the one hand,
and bank behavior, interest rates, finan­
cial flows, and the asset choices of the
public, on the other. An unusual oppor­
tunity for the study of these linkages
was provided, however, by the changes
in thrust of open market operations during
the year. This report uses the background
of the year’s developments to present a
view of the process by which open market

2

operations affect reserves, interest rates,
and the monetary and credit aggregates.
System open market operations have a
direct and immediate effect on the non­
borrowed reserves of the banking system.
The response of the banks quickly affects
the Federal funds rate, as well as the level
of member bank borrowings at the Reserve
Banks, especially when the funds rate is
at or above the Federal Reserve discount
rate. The change in the Federal funds rate
produces a closely related change in other
short-term interest rates in reasonably
quick order.
Two channels carry this impetus for­
ward, exerting a pervasive influence on
other interest rates and financial flows and
ultimately on economic activity. First,
operations affect the interest rate expecta­
tions and investment decisions of banks

SELECTED INTEREST RATES
PER CE

10
e
6

4

0
10

1970

1971

F ederal fu n d s, w e ek ly a v erag e effectiv e rate; T rea su ry b ills, w eekly a v erag e issuing ra te ; F H A m o rtg ag e s, seco n d ary m ark et rate,
ta x -e x e m p t, “ B ond B u y e r” 2 0 -y e a r index.




342

FEDERAL RESERVE BULLETIN □ APRIL 1972

and other investors. The actions of these
participants in the credit markets help
shape interest rate developments and in­
fluence the rate of growth of bank credit.
Second, short-term interest rates affect
the public’s portfolio choices between
market instruments and deposits at banks
and other institutions. (The main changes
in interest rates in 1970 and 1971 are
shown in Chart 2.)
System open market operations thus
set in motion a complex portfolio adjust­
ment process. While the direction of
influence is clear, the timing and extent
of the effects generated depend importantly
on market expectations of the future and
the feedback of influence from the econ­
omy itself. In 1971, both the broader
money supply (M2) and the credit proxy1
appeared to respond more quickly than
M x to System-initiated changes in the sup­
ply of nonborrowed reserves and the
Federal funds rate. Moreover, there were
apparently significant shifts in the public’s
demand for
in the course of the year,
making it most difficult, and probably in­
appropriate, to achieve a steady quarterly
growth rate in M ,.
The Committee from time to time took
account of both capital market conditions
and the behavior of the aggregates—
chiefly M x— in its directives to the Desk.
When M x grew rapidly in the second
quarter, concern about the capital markets
moderated the speed and intensity with
which the Desk exerted upward pressure
on interest rates in the process of restrain­
ing rapid monetary expansion.

THE TRANSMISSION OF
MONETARY POLICY

1M2 includes M, plus commercial bank savings and
time deposits other than large negotiable certificates of
deposit. The adjusted bank credit proxy consists of total
member bank deposits subject to reserve requirements
plus nondeposit sources of funds, such as Euro-dollar
borrowings and the proceeds of commercial paper issued
by bank holding companies or other affiliates.




The execution of System open market
policy in 1971 involved both a day-to-day
target for open market operations and a
procedure for modifying that target be­
tween meetings in accordance with the
Committee’s intermediate-term objec­
tives. In 1971 the Committee continued
to specify a desired range for the Federal
funds rate as the most important compo­
nent of the money market conditions to
be achieved by the Desk. Over the interval
between meetings, the FOMC provided
guidance as to the appropriate Desk re­
sponse to the behavior of the monetary
and credit aggregates and of interest rates
in the capital markets. The Committee’s
trade-offs between these objectives varied
over the year, but on balance the Com­
mittee’s primary concern was with M x.
The Federal funds rate as a target.
The
Committee’s use of the Federal funds
rate gave the Manager an objective that
he could usually hold within reasonable
limits during the statement week. The
Federal funds rate also is highly visible
to member banks and the financial com­
munity. The rate directly affects the profit
calculus of member banks, as it is the op­
portunity cost of marginal reserves. To
others, changes in the Federal funds rate
serve as an early indicator of changes in
the Federal Reserve’s willingness to sup­
ply nonborrowed reserves to the banking
system. Thus, the banks and the financial
markets quickly become aware of changes
in the thrust of central bank operations.
In shaping weekly money market strat­
egy, the Manager used two sets of forecasts
—being fully aware of the confidence
limits that attach to each. First, there was
the forecast of the likely level of excess
reserves in the banking system, allowing
for carryover excesses and deficiencies

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

and discernible historical patterns. The
Desk’s experience with such forecasts
since m id-1971 suggests that average
excess reserves can usually be projected
within $50 million to $100 million for the
current statement week, although there
are significant aberrations from time to
time. With required reserves pre-estab­
lished under lagged reserve accounting,
realized total reserves will thus generally
fall within $50 million to $100 million of
the projected number. The second set of
weekly reserve projections involved the
factors affecting nonborrowed reserves—
notably, Federal Reserve float, currency
in circulation, Treasury and international
balances at the Reserve Banks, and the
like. The projection errors here are quite
large—principally because of unexpected
swings in Federal Reserve float. In 1971
the average difference between the pro­
jections of all such factors made at the
New York Bank on the first day of the
statement week and the final outcome was
$275 million.
Faced with this degree of uncertainty,
the Manager of the Open Market Account
must make a daily judgment of the prob­
ability that attaches to his forecasts. Then,
he must take action that will fit into an
orderly program of supplying, or absorb­
ing, nonborrowed reserves. There are often
market limitations on the volume of oper­
ations that can be conducted on a single
day. To the extent possible, the Manager
also seeks to avoid frequent reversals of
outright market transactions in the inter­
est of maintaining a smoothly function­
ing Government securities market. Repur­
chase agreements and matched sale/pur­
chase transactions help to effect large
temporary changes in nonborrowed re­
serves without exerting much influence
on prices of securities.2
2Fornote, see opposite column.




343

A stream of information flows to the
Trading Desk each day, including data
each morning on the reserve positions and
discount window borrowings of all mem­
ber banks for the previous day and on the
Federal funds and dealer lending opera­
tions of 46 major money market banks.
This new information enables the statis­
tician to adjust his projections for a devia­
tion in reserves from his projected path.
It also gives the Desk insight into the
reserve management strategies of major
groups of member banks as revealed by
their cumulative excess or deficit reserve
positions. But the Federal funds market
is the chief source of current information
to the Desk on the behavior of nonbor­
rowed reserves during the day. The sup­
ply/demand balance in that market shifts
as member banks react to incoming infor­
mation on their reserve positions or as
their willingness to hold excess reserves
changes. Based on its expectations of
likely levels of excess reserves, and on
projections of various reserve factors, the
Desk can make reasonable judgments
about how the money market should
behave. Current information from the
Federal funds market during the day then
suggests whether nonborrowed reserves
are, in fact, behaving as expected.
One can gain more appreciation of the
D esk’s need for a current indicator of non­
borrowed reserves by examining the
behavior of nonborrowed reserves on Fri­
days during 1971. Friday is a key day for
the Desk since the reserve levels on that
day carry over Saturday and Sunday as
Repurchase agreements involve the System purchase
of eligible securities or bankers’ acceptances from non­
bank dealers under contracts that provide for their resale
from 1 to 15 days later. Matched sale/purchase transac­
tions involve a System sale of eligible securities that is
matched by a contract to repurchase them, usually a few
days later. Such transactions are conducted with both
bank and nonbank dealers in Government securities.

344

well, thereby accounting for three-sev­
enths of the weekly average. During
1971 the average absolute change in non­
borrowed reserves on Fridays, exclusive
of System open market operations, was
$434 million, but it required a band of
±$959 million to include 90 per cent of
the actual changes. The Federal Reserve
Bank of New Y ork’s projections of non­
borrowed reserves anticipated a con­
siderable part of this variation, but unex­
pected variations remained quite large.
A band of ±$585 million was required
to include 90 per cent of the deviations of
actual nonborrowed reserves (exclusive
of System operations) from projected
levels. The average absolute “ m iss”
was $292 million.
The Desk can anticipate member bank
reserve strategy to some degree, but by
no means perfectly. In 1971 there con­
tinued to be a strong tendency for a tight
Federal funds market at the end of a state­
ment week to increase the demand for
excess reserves by major banks in the fol­
lowing week, especially over the week­
end. Conversely, an easy Federal funds
market at the end of the week tended to be
followed by a more relaxed attitude on the
part of money market banks toward the
accumulation of reserve deficiencies over
the following weekend. The resultant
variations in excess reserves were a major
factor in an average week-to-week swing
in excess reserves of $ 187 million.
The Desk was generally able to antici­
pate a major part of such swings in 1971,
but the extent of the change was sometimes
surprising. For example, in the November
24 statement week (in which nonborrowed
reserves were overstated by $400 million
through a clerical error), the 46 major
money market banks were willing to ac­
cumulate a reserve deficiency of $3.0
billion over the weekend (Chart 3). The
Federal funds rate gave little sign of a $540



FEDERAL RESERVE BULLETIN □ APRIL 1972

RESERVE MANAGEMENT BY MAJOR
MONEY MARKET BANKS
PER CENT
FEDERAL FU N D S RATE

^

4

+
•
-1 -

I

-I- +

-+

t

H IG H

-j

.

EF FE C T IV E R ATE

' LOW

1

1

1

1

1

1

I

1

BILLIONS OF DOLLARS
4

BO RRO W IN GS I'R O M F.R. BANKS
-

1

0

■

EXC ES S RESERVES

4

M H

\
IB

19

22

23

24
NOVEMBER
1971

26

21

30

1

E x cess re serv es are c u m u la tiv e fo r 4 6 banks th ro u g h p re v io u s
day fo r c u rre n t statem e n t w eek. D ash ed line in d icates T h a n k s­
giving.

million reserve shortfall on Friday or of the
large net reserve deficiency building up in
the banking system. The D esk’s injection
of $2 billion of nonborrowed reserves in
3 days—the maximum attainable in the
circumstances— was not sufficient to pre­
vent the Federal funds rate from rising well
above the 4% per cent desired. Member
bank borrowings at the discount window
also bulged to almost $2.4 billion on the
statement date, which preceded Thanks­
giving. Predictably, the 46 money market
banks hoarded excess reserves over the
following weekend, accumulating $5.4
billion in excess reserves by Monday
morning. In consequence, the Federal
funds rate broke to as low as V* per cent
by the end of the week. The Desk’s will­
ingness to interpose only token resistance
to this decline meant that the seesaw
management of reserve positions by the
banks proved expensive to them. Such
experiences tend to moderate the swings in
bank behavior.

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

There is still another dimension of the
D esk’s weekly strategy that relates directly
to the Committee’s use of the Federal funds
rate as an important short-run target.
When the FOM C’s directive calls for a
Federal funds rate below the discount rate,
the Desk supplies nonborrowed reserves
abundantly and is quite tolerant of an easy
money market toward the end of the state­
ment week. This was notably the case in
the January-M arch interval and again in
November and December. However,
when the FOM C’s policy stance calls for
increasing the pressure on member banks
as in the April-August interval, the Desk
typically allows the demand for reserves
to push up the Federal funds rate before
it supplies nonborrowed reserves. In such
periods, it is also quick to mop up reserve
excesses when the Federal funds rate be­
gins to slip below the desired range. In this
way, the daily conduct of open market
operations underscores the Committee’s
policy stance, and is one of the ways that
the System communicates its current
policy intent to the banking system and
financial markets.
The pursuit of the Committee’s inter­
mediate objectives over the interval be­
tween meetings. In 1971 the FOMC con­

tinued to be concerned both with the
growth rates to be achieved in the mone­
tary and credit aggregates and with the
behavior of interest rates. Through the
March 9 meeting, the Committee’s direc­
tives to the Desk called for pursuing
desired growth in the aggregates and for
accommodating downward movements
in long-term interest rates. After a transi­
tional directive in April, the primary
emphasis was placed on moderating the
growth of the aggregates, but capital
market developments remained an impor­
tant conditioning element in the Desk’s
instructions as interest rates rose. After
the announcement of the President’s new



345

economic program on August 15, the
principal focus continued to be the aggre­
gates, but the Committee made clear its
expectation that lower interest rates would
follow. In its August 24 meeting the Com­
mittee also authorized outright transac­
tions in Federal agency securities to widen
the base of operations and add breadth to
the market for such securities. By late in
the year, strong emphasis was placed on
a resumption of growth in M x.
The Committee’s decision at each
meeting regarding acceptable behavior
of the aggregates was embodied in a track­
ing path of weekly values for each of three
aggregates over the interval until the next
Committee meeting and a path of monthly
values over the quarter. The Committee’s
instructions to the Desk focused chiefly on
, currency plus demand deposits in the
hands of the public. Some weight was also
given to the behavior of M2 and the ad­
justed credit proxy. The FOMC typically
indicated to the Desk whether it was more
concerned with upside or downside de­
viations. And it provided guidance on
occasion about the rapidity with which
the Desk should respond.
For the Manager the pursuit of the Com­
mittee’s intermediate objectives involved
two types of decisions. First, there was
the decision each week as to whether the
targeted range of the Federal funds rate
was to be changed in response to develop­
ments in the aggregates or in capital mar­
kets. Second, there was an ongoing choice
of the channels to be used in affecting non­
borrowed reserves. For example, the Desk
often employed purchases of Treasury cou­
pon securities as a means of both supply­
ing reserves and contributing, at least mar­
ginally, to the accommodative capital mar­
ket environment desired by the FOMC.
Beginning in September the System began
buying Federal agency securities from time
to time in the normal course of operations.

346

FEDERAL RESERVE BULLETIN □ APRIL 1972

Each week the Manager decided on the
approximate setting of the Federal funds
rate range for that week. These decisions
were largely geared to the recent behavior
of M x and the other aggregates in relation
to the weekly tracking paths. Each Friday
morning the Manager had before him a
preliminary estimate of M l5 M2, and the
adjusted credit proxy for the preceding
statement week and a revised report of each
of the three for the week before that. There
were also two sets of revised projections of
all three for the current month and calen­
dar quarter— one by the Federal Reserve
Board staff and one by the New York Bank
staff. The Manager and his associates at
the Trading Desk gave less weight to the
projections of behavior over the remainder
of the quarter since a sizable margin of
error attached to them.
The Desk’s response to a significant de­
viation in M, rested on a number of con­
siderations. Under the FOM C’s instruc­
tions the Desk was likely to move its
weekly Federal funds rate objective more
quickly, and to a greater extent, if the
latest deviation continued a cumulative
departure from a path that had been under
way for some time and seemed likely to
persist. Second, the Desk might give some
weight to the behavior of M2 and the credit
proxy. Finally, the Manager had to fold
in the capital market element of his instruc­
tions, weighing the impact of the projected
changes in the Federal funds rate on his
ability to achieve expressed Committee
desires regarding long-term interest rates.
The experience after the meeting of the
FOMC on January 12, 1971, illustrates the
factors typically encountered in setting
weekly targets.
had grown at about a
3.5 per cent annual rate in the fourth quar­
ter of 1970, compared with the 5 per cent
rate expected at the December 15 meeting
of the Committee. The Desk had responded
to the shortfall by lowering the Federal
funds rate to around 4% per cent from

the 5 per cent level prevailing before the
December meeting. The Federal Reserve
discount rate had been lowered from
5% per cent to 5% per cent effective Jan­
uary 8 . At the January 12 meeting, the
Committee agreed to promote accom­
modative conditions and to moderate ex­
pansion in the monetary and credit aggre­
gates and called for some easing of money
market conditions soon. There was also
agreement that conditions would be eased
further if it appeared that the aggregates
were expanding at rates below those
needed to make up the fourth-quarter short­
fall in M x.
Following the meeting, the Desk aimed
for a Federal funds rate around 4% per
cent. In the January 13 week, the aggre­
gates appeared to be close to their respec­
tive tracking paths (Chart 4). Then, M x
fell far short of its path in both the January
20 and the January 27 weeks. In contrast,
the credit proxy continued relatively
strong, growing at an annual rate of 10 per
cent in January.




6
5
4
3

ARS

220
210
200
0
340

330

220
' 0
T rea su ry b ills, a v erag e issu in g rates; F ederal fu n d s, av erag e effective rate.
A g g re g a tes are seaso n ally a djusted.

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

In the credit markets, expectations of a
decline in interest rates had been reinforced
by a lA percentage point cut in the Federal
Reserve discount rate to 5 per cent begin­
ning on January 19. Working in the same
direction was the Trading Desk’s negotia­
tion of repurchase agreements with non­
bank dealers at a rate below the discount
rate for the first time in 6 years and two lA
percentage point cuts in the commercial
bank prime lending rate. The capital mar­
kets were experiencing a dramatic rally.
Corporate bond yields fell by about V2 of a
percentage point between mid-December
and late January. The Treasury’s an­
nouncement of a refinancing of nine out­
standing issues (of which $19.5 billion was
held by the public) was greeted with such
enthusiasm that unprecedented first-day
premiums of 29/32 (bid) emerged for the
two new issues being offered in the ex­
change.
Against the background of the Commit­
tee’s strong desire to get M L moving, the
Desk shifted its Federal funds rate objec­
tive down by V2 of a percentage point by
the time the Committee next met on Feb­
ruary 9. The rate on 3-month Treasury bills
fell by about 85 basis points over the
interval between meetings to 3.82 per cent.
One could describe the D esk’s response
to the M i shortfall in terms of nonbor­
rowed reserves equally well. To keep the
Federal funds rate well below the discount
rate involved supplying nonborrowed re­
serves plentifully in relation to required
reserves. Member bank borrowings at
Federal Reserve Banks, aside from special
problem borrowing, declined to a negligi­
ble $5 million in the statement week that
ended February 10. Required reserves re­
flected the shortfall in the private demand
deposit component of M x in the January
20 and 27 weeks 2 weeks later— that is, in
the February 3 and 10 statement weeks. In
pursuit of a lower Federal funds rate, the
Desk pressed nonborrowed reserves on



347

the banking system. With the willingness
of the money market banks to accumulate
excess reserves limited to the amount that
could be carried forward into the subse­
quent statement week, the Federal funds
rate responded quickly to the D esk’s
action. The average effective Federal funds
rate for the February 10 week fell to 3.59
per cent from more than 4 per cent the week
before.
The impact of System policy shifts on
the short-term market in 1971 .The System’s

management of nonborrowed reserves
has its initial impact in the market for
bank reserves and the Federal funds mar­
ket and spreads quickly to the rest of the
short-term market. A key linkage in this
process is provided by the borrowing of
dealers in Government securities to carry
their inventories, which ranged between
$2.5 billion and $7.3 billion, of Treasury
and Federal agency securities during 1971.
The bank dealers are affected quite directly
by the Federal funds rate since most bank
dealer departments are charged at this
rate for the funds employed in their opera­
tions. The nonbank dealers seek out repur­
chase agreements from corporations, State
and local governments, and Federal agen­
cies as the least costly means of financing
their positions, but usually they must rely
on the banks as well.
The sensitivity of dealer loan rates to
the Federal funds rate assures that System
open market operations have a rapid, and
roughly commensurate, impact on the
financing costs of the dealers in Govern­
ment securities. This, in turn, affects the
interest rates at which dealers are willing
to hold Treasury bills and other short-term
market instruments. To be sure, other fac­
tors also affect the dealers’ willingness to
position bills— notably the current and
prospective demand for bills, the Treas­
ury’s bill financings, and expectations
of future interest rates. These keep the
linkage between the Federal funds rate

348

FEDERAL RESERVE BULLETIN □ APRIL 1972

and Treasury bill rates from being a simple
mechanical one. Still, changes in dealer
financing costs exert such a strong and per­
vasive influence on Treasury bill rates—
both directly and through their impact on
dealer expectations—that other factors
may modify but can seldom offset it over a
period of weeks. The response of lenders
and borrowers to changes in the Federal
funds and Treasury bill rates assures a
rapid, if sometimes uneven, response of
other short-term rates to the changing man­
agement of nonborrowed reserves. (The
transmission of effects to the market for
longer-term securities is treated later in this
article.)
As noted earlier, the System’s manage­
ment of reserves during 1971 can be
divided into three phases. During the first
3 months, the System was pressing non­
borrowed reserves on the banking system
to increase the growth in M x while accom­

modating a decline in long-term interest
rates. Then, from April through midAugust, the emphasis shifted to resisting
the rapid growth of
then underway
within the constraints imposed by continu­
ing concern about the capital markets.
Finally, with the President’s new economic
program enhancing prospects for a higher
rate of real economic growth and reduced
inflationary pressures, the System stepped
up the provision of nonborrowed reserves
as Mj slowed down. It thereby fostered a
climate of credit availability and lower
interest rates that was largely free of fears
that excessive demand and inflationary
pressures would soon revive.
January through March. In the first quarter
of the year, the Committee sought to make
up the shortfall of M, in the fourth quar­
ter of 1970 when it was believed to have
grown at a 3.4 per cent annual rate,3 com ­
3R ev ised in N o v e m b er 1971 to 3 .8 p e r cent.

MONEY MARKET CONDITIONS and weekly forecasts of
quarterly GROWTH OF THE AGGREGATES,
December 1970-M arch 1971
M ILLIONS OF DOLLARS

1000

2

6

16

DECEMBER

23

13

20

27

3

JANUARY

* F irst w eek p ro jected .
F o recasts at seaso n ally a d ju sted a nnual rates.




10

17

FEBRUARY

24

10

17

MARCH

24

31

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

pared with about 6 per cent in the first three
quarters of 1970. The FOMC also called
for accommodating the fall in long-term
interest rates through open market opera­
tions.
The Trading Desk experienced little
conflict in pursuing the FOM C’s dual ob­
jectives during the first quarter, although
Mi continued weaker than desired in
January. After the January 12 FOMC
meeting, the Desk’s initial target range
for the Federal funds rate centered on 4%
per cent. As noted earlier, M, began in late
January to fall short of the Committee’s
tracking path. This led the Board staff to
revise downward its projection of the
growth likely to be achieved over the
quarter (Chart 5). The Desk responded
to the shortfall by lowering its Federal
funds rate objective to around 3% per cent
by the time of the February 9 meeting. The
Committee’s next directive called for a
prompt response to any further shortfall,
and the Desk lowered the center of the
desired range to 3 Vi per cent on February
12, when incoming data suggested such
a result. By the Committee meeting on
March 9, M x was showing a bit more
strength, suggesting that the fourth-quarter
shortfall might well be made up. Soon
afterward, both M 1 and M 2 began to show
somewhat more rapid growth than de­
sired. Accordingly, the Desk sought to
foster a shade less accommodative money
market conditions— a Federal funds rate
centering on 3Vi to 33A per cent. In the
event, however, the Federal funds mar­
ket became tighter than desired in spite of
Desk action, with the rate rising to 4 per
cent or above on a number of days in mid­
March and again around the end of the
month.
As the Federal funds rate was reduced
in the first quarter, dealers were able to
borrow at rapidly declining rates—espe­
cially from nonbank sources. As a result,



349

the Desk found it increasingly difficult to
make repurchase agreements with nonbank
dealers at the discount rate. Accordingly,
the Desk lowered the rate on repurchase
agreements to 5 per cent on January 20 in
order to be able to continue using this valu­
able means for injecting reserves for short
periods. This cut in the repurchase rate
brought it below the discount rate for the
first time in 6 years, and gave rise to market
expectations of a further cut in the dis­
count rate. Subsequent reductions brought
the rate on repurchase agreements to 4 lA
per cent in early February and to 3% per
cent on February 18. (The discount rate
was cut to 4 3A per cent, effective February
13.) Market observers soon recognized
that the rate was being adjusted lower
routinely to keep it competitive with lower
market rates, but bullish sentiment tended
to be encouraged nonetheless.
The decline in the Federal funds rate 1
brought dealer lending rates in the New
York City banks down from around 5%
per cent in early January to about 3% per
cent in early March. The downward pres­
sure this exerted on Treasury bill rates was
augmented by strong demand from foreign
central banks and the Federal home loan
banks in February and early March. At
this point, many market participants also
strongly expected interest rates to con­
tinue to decline. In this environment the
Treasury’s offering of a strip of $1.2 bil­
lion of weekly maturities was snapped up
without any lasting effect on rates. The
3-month bill rate fluctuated narrowly
around 3% per cent through most of
March, compared with the 4% per cent
rate prevailing in December. Over the
January-March interval, rates on 60- to
89-day CD ’s, 30- to 89-day finance com­
pany paper, and 90-day Euro-dollars fell
generally by about 13A percentage points
to the vicinity of 3% per cent, 3 Vi per cent,
and 5% per cent, respectively.

350

FEDERAL RESERVE BULLETIN □ APRIL 1972

The low level of short-term rates led to
official concern about short-term money
outflows to the rest of the world. On
March 16 the Treasury announced that it
would add $5 billion in three segments
to the supply of bills outstanding. Unde­
sired firmness in the Federal funds mar­
ket contributed to a rise in rates that car­
ried the 3-month rate to 3.70 per cent just
before the FOM C’s April 6 meeting. The
rise was cushioned, however, because
Government securities dealers increased
their bill positions by $2.6 billion in the
2 weeks ended April 7.
Yields in the long-term capital markets
moved briskly lower in the opening
weeks of the year. New Aaa-rated cor­
porate bonds declined to around 6% per
cent by late January, down almost a full
percentage point for the month. Municipal
bond yields declined by about % of a
percentage point. The decline in yields
brought an influx of new issues to the
corporate bond market, however, with the
4-week visible supply rising from $1.5
billion to over $3 billion between midJanuary and mid-February. Yields on new
corporate issues rose appreciably in Feb­
ruary (Chart 2), while municipal bond
yields retraced only a part of their
earlier declines. Long-term Government
yields rose in February in sympathy with
the competitive corporate market, but
intermediate-term yields continued to de­
cline as the System supplied nonborrowed
reserves freely and short-term rates fell.
Against this background and under the
Committee’s instruction to accommo­
date declining long-term interest rates, the
Desk supplied the major part of its long­
term provision of reserves during the first
quarter through the purchase of Treasury
coupon issues. The strong demand pres­
sures evident in the bill market provided
still another week-to-week reason for
buying coupon issues. The Desk added

$1,027 million of such securities to the
System’s portfolio in the 7 weeks that
ended March 31, including $195 million
of issues maturing in over 10 years. The
System’s repeated entry into this market,
at a time when it was also supplying non­
borrowed reserves at a pace that pushed
short-term rates down, contributed to the
ability of the corporate bond market to dis­
tribute an unprecedented volume of offer­
ings in March at declining rates. By the
end of March, yields in all sectors of the
bond markets were again at or close to
their lows for the year.
April through mid-August. At the FOMC
meeting on April 6 , staff analysis sug­
gested that if prevailing money market
conditions were maintained, M i would
grow somewhat faster over the second
quarter than the 8 per cent rate then
estimated for the first quarter. The staff
expected a moderation of the rapid
growth rates of M2 and the credit proxy
recorded in the first quarter— 17.5 per
cent and 11 per cent, respectively. The
Committee decided that some minor firm­
ing of money market conditions was in
order. Some members favored this to
help achieve less-rapid growth in the
monetary aggregates; others placed the
emphasis on narrowing the interest rate
differential between this country and
abroad. The directive called for continu­
ing the purchase of coupon issues in the
interest of promoting accommodative
conditions in long-term credit markets.
System open market operations initially
sought to establish the Federal funds rate
in the upper part of a 3% to 4 per cent
range. Incoming data soon showed that
both Mj and M2 were $2 billion in excess
of their tracking paths and subsequent
data confirmed the strength, especially
for M i. Accordingly, the Desk raised the
center of its Federal funds rate range to
about 4 V4 per cent. The pattern of April




351

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

MONEY MARKET CONDITIONS and weekly forecasts of
q u a rte rly GROWTH OF THE AGGREGATES, April-August 1971
PER CENT

M ILLIONS OF DOLLARS

1000

ii
7

14

21

28

5

12

19

26

2

9

16

23

30

7

14

21

28

4

11

______________ APRIL_________________MAY____________________JUNE___________________ JULY___________AUGUST

F o rec a sts at seaso n ally ad ju sted annual rates.

persisted through May and June. Despite a
successive rise in the targeted range of the
Federal funds rate, staff projections of the
second-quarter growth in M , (Chart 6)
continued to exceed the FOM C’s objec­
tives. And as M x continued to come in
higher week by week than its tracking path,
the Desk kept raising its sights for the
Federal funds rate. By the end of June the
rate was back to 5 per cent, around the level
of late December. But M x grew at a 10.6
per cent annual rate in the quarter, com­
pared with 9.1 per cent in the first quarter.
In contrast, both M2 and the credit proxy
grew more moderately— at rates of 12.4
per cent and 8.4 per cent, respectively,
compared with rates of 18.1 per cent and
10.9 per cent in the first quarter.
The System’s reponse to the overruns in
Mj in the second quarter was conditioned
by the Committee’s concern for the long­
term credit markets. But the Desk could
not avoid spillover effects on interest rates.



It could only try to foster an orderly adjust­
ment in the credit markets to a number of
disturbing influences. The shift in the
System’s money market targets dashed
existing expectations that still lower in­
terest rates lay immediately ahead. The
rapid growth of M, and the continuation
of price increases in a sluggish economy
raised fears that inflation would remain
a major economic problem with adverse
consequences for the bond market. M ar­
ket participants were deeply disturbed by
the lack of Government action to deal with
persistent inflation. And finally the massive
speculative flow into Germany in early
May before the mark was allowed to
float suggested to many that higher in­
terest rates would be required in the
United States for defense of the dollar.
The reaction in the credit markets was
sharp. Yields on new Aaa-rated corporate
bonds rose by about 1 percentage point
to over 8 per cent in the 6 weeks that ended

352

FEDERAL RESERVE BULLETIN □ APRIL 1972

in mid-May. The Weekly Bond B u yer’s
20-bond index of 20-year municipal bonds
rose a like amount to around 6 per cent.
Both series retreated to the levels of
November 1970. In the Treasury market,
long-term yields rose by V2 of a per­
centage point to around 6 V4 per cent under
the special pressure of the Treasury’s
May financing and the liquidation of short­
term positions by dealers and trading
banks. (A fuller discussion of the mecha­
nism through which monetary policy is
transmitted to the credit markets is given
later.) In contrast, the implicit yield on
Government-underwritten mortgages in
the Federal National Mortgage Associa­
tion’s (FNMA) biweekly auction of pur­
chase commitments rose by only about
XA of a percentage point, remaining about
IV4 percentage points below the Novem­
ber 1970 level.
Against this background the Desk’s
shift in its target for the Federal funds rate
was gradual— from about 4 Vs per cent
after the FOM C’s April meeting to 4Vi
per cent by mid-May. The M anager’s
reports to the Committee at the time in­
dicated that market conditions were
limiting his response to the overrun in
Mj. This meant that nonborrowed re­
serves were growing faster than an un­
constrained Mj target would have called
for. But the turmoil in the credit markets
— notably, in the Government securities
market—pointed to a much more funda­
mental change in the portfolio strategy
of banks and other investors than the
modest change in money market rates
might suggest. The Federal funds rate
at such turning points hardly reflects the
full effects on the banking system of a
shift in central bank direction.
Short-term interest rates reflected the
changes in the Federal funds rate. The rate
on 3-month Treasury bills rose to around
4% per cent in the second half of May,

after having been held down earlier in
May by concentrated foreign central
bank buying as a result of the flow of funds
to Germany. By comparison with this
% of a percentage point rise in 3-month
bill rates over 8 weeks, rates on 60- to
89-day CD ’s advanced by just over 1 per­
centage point and those on 30- to 89-day
finance company paper by 1 % percentage
points. Reflecting borrowing for exchange
speculation, rates on 3-month Euro-dollars
rose sharply during early May, subsided,
and then rose again at the month-end to
7Vi per cent, more than 2 percentage
points above their end-of-March level.
As the Federal funds rate was pushed
up to around the 4% per cent discount
rate in the second half of May, it became
a less-reliable indicator for a time of the
degree of adjustment pressure being
exerted on the banking system by open
market operations. With the Desk hold­
ing back on the provision of nonborrowed
reserves to nudge the Federal funds rate
still higher, member banks responded by
turning to the Federal Reserve discount
window. Such borrowings (exclusive of
problem borrowing) had remained at a very
low level, while the Federal funds rate was
raised from 3 Vi per cent to 4 V2 per cent.
But they rose to an average of $242
million in the last two statement weeks in
May and then to $627 million in the last
2 weeks of June. Nonborrowed reserves
actually declined in June, while the Federal
funds rate moved only % of a percentage
point higher. In turning to a privileged
source of reserves, banks did not exert as
much pressure on the Federal funds rate as
in the preceding 2 months, but the impact
on bank attitudes may well have been
as great, perhaps greater.
Dealer financing costs rose modestly
in June in tandem with the Federal funds
rate, but Treasury bill rates rose rather
rapidly. The 3-month rate rose by % of a




OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

percentage point to around 5 lA per cent,
while the 1-year rate rose more than a full
percentage point to 5.84 per cent. Con­
cern over progressive System firming was
augmented by fears of heavy Treasury
financing. There were also bill sales by
the German central bank at the time. While
other short-term rates rose considerably
less, yields on Treasury coupon issues
maturing in 3 to 5 years rose by about
l/ i of a percentage point as banks and
dealers continued apprehensive about the
outlook for interest rates. In the longerterm markets, corporate bonds moved nar­
rowly after mid-May as the forward
calendar began to recede. Municipal
bonds worked a bit higher in yield as
bank buying declined, and implicit mort­
gage yields moved up by Vi of a percent­
age point in the FNMA auctions between
mid-May and mid-June.
When the FOMC met on June 29, the
staff projected that M x and M2 would
expand at annual rates of 9 per cent over
the third quarter, even if money market
conditions were somewhat firmer. The
staff felt, however, that growth in these
aggregates would recede to quite modest
proportions late in the year. Committee
members were concerned about both the
rapid growth in the monetary aggregates
and the recent upward pressure on interest
rates, in view of the dependence of the
recovery on such interest-sensitive sec­
tors as housing. While there was agree­
ment that an unduly sharp firming should
be avoided because of the risk to market
interest rates, the Committee decided that
open market operations should be directed
at achieving more moderate growth in the
monetary aggregates over the months
ahead.
The Desk once again found M x moving
above its tracking path and responded by
pushing the Federal funds rate up to around
5 Vi per cent after mid-July and a shade



353

higher in August. Member bank borrow­
ings from the Reserve Banks rose some­
what further on average, but the Federal
funds rate became more responsive to
Desk action than in June. (The Federal
Reserve discount rate was increased from
4% per cent to 5 per cent, beginning July
16.) After mid-July the Board staff began
to revise downward its projections of M x
growth in the third quarter on the basis of
incoming data. Even so, the projection
of 8.5 per cent growth on August 12 re­
mained appreciably faster than the Com­
mittee desired, and it continued to main­
tain its higher Federal funds rate objective.
Most short-term rates rose in July and
held steady in August, while long-term
yields continued to edge higher. Treasury
bill rates began to come under strong
downward pressure in August, when for­
eign central banks sought to invest the
rising tide of funds flowing to them as
speculation against the dollar mounted to
massive proportions in the exchange
markets.
August 15 through December. The Pres­
ident’s new economic program altered
fundamentally most forecasts of the eco­
nomic outlook and the expectations of
investors about the future course of in­
terest rates. At hqme the institution of a
wage-price freeze and the promise of an
incomes policy encouraged economists to
believe that the tax stimuli of the program
would both increase real growth and
reduce the rate of advance in prices. The
suspension of dollar convertibility and
the imposition of the temporary 10 per cent
import surcharge marked new initiatives
that raised hopes of progress on the Na­
tion’s long-standing balance of payments
problem. On both domestic and inter­
national grounds, market observers quick­
ly concluded that the monetary authori­
ties would have considerably greater
freedom to pursue a more stimulative

354

FEDERAL RESERVE BULLETIN □ APRIL 1972

monetary policy over the next year or so.
Long-term interest rates declined sharply
as market participants scrambled to re­
establish the speculative positions liqui­
dated earlier. Short-term interest rates
declined to a lesser degree with the ex­
ception of Treasury bill rates, which had
already been moving lower on heavy
foreign central bank demand. When the
FOMC met on August 24, the 3-month
bill rate was 4% per cent, 40 basis
points lower than on August 13 and 71
basis points lower than on the eve of the
Committee’s previous meeting.
The Committee’s staff tentatively con­
cluded that the new economic program
would raise real growth and dampen infla­
tion in the rest of 1971. The staff also
felt that the maintenance of existing
money market conditions would moderate
the growth in M, to an 8 per cent rate
in the third quarter and substantially less
in the fourth quarter. M2 was expected to
grow more slowly in the last half of the
year than in the second quarter, while the
credit proxy was expected to grow some­
what faster than the 6.5 per cent secondquarter rate. The Committee felt that the
ultimate consequences of the new program
for monetary policy could not yet be
assessed with assurance and that any
marked change in policy would be pre­
mature. There was particular concern that
any easing of money market conditions
be in response to clear public evidence
that the monetary aggregates were, in fact,
slowing down.
The Desk sought to maintain the Federal
funds rate in its recent range after the
meeting, but unusual reserve pressures
around the Labor Day holiday led to per­
sistent trading at 5% per cent, somewhat
firmer than desired. Treasury bill rates
rebounded somewhat around mid-Septem­
ber from the artificially low levels to

which foreign demand had pushed them,
partly because of fears that foreign cen­
tral banks might become sellers in the
future. There was also a temporary rise
in bond yields. By mid-September the
weakening in M x that had begun de­
veloping in late August began to become
visible to the general public. With the
staff’s projection for the quarter down to
5 per cent, the Trading Desk shifted the
center of the Federal funds rate range
down to 5 V4 to 5 V2 per cent on the eve of
the Committee’s September 21 meeting.
The more generous provision of non­
borrowed reserves led to a prompt de­
cline in member bank borrowings at the
discount window, even before there was
much effect on the funds rate.
Over the last quarter of the year the
Committee was increasingly concerned
with the persistent sluggishness in M 1.
As new data came in week by week, pro­
jections of its growth were revised irregu­
larly downward (Chart 7). The Desk
responded to the shortfalls in M, below
successive paths by reducing the center
of its Federal funds rate range repeatedly,
to about 3% per cent by late December
from 5 V2 per cent in mid-September. (The
Federal Reserve discount rate was reduced
by lA of a percentage point, first on
November 11 and then again on Decem­
ber 13, bringing it to 4% per cent.) The
fourth-quarter growth in M x turned out to
be 1.1 per cent at an annual rate, bringing
growth over the year to a 6.2 per cent
rate. M2 and the credit proxy closed with
quarterly growth rates of 8.0 per cent and
9.7 per cent, respectively, and annual
growth rates of 11.1 per cent and 9.5
per cent, respectively.
The decline in the Federal funds rate
over the last quarter was accompanied
by a further decline in member bank bor­
rowings at the Reserve Banks— aside




OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

355

MONEY MARKET CONDITIONS and weekly forecasts of q u a rte rly
GROWTH OF AGGREGATES, August-December 1971
M ILLIO NS OF DOLLARS

PER CENT

1000

W E E K LY FO RE CAS TS OF G RO W TH
M j

lin n

■

- __________________—

i . ____________ —

_

—

■ ■ ■ ■ ■
m 2

:rw ^ n rL n m n n n
A D JU S TE D

BANK

C R E D IT

8lf'B.iffl til H
IMII 1 ■■■
18

25

1

8

15

22

i i . n

■ m

ill

F o recasts at seaso n ally ad ju sted annual rates.

from some unusual stresses that developed
around the Thanksgiving Day holiday and
on some other isolated occasions. By
early December, member bank borrow­
ings were again close to a frictional mini­
mum as open market operations pushed
the Federal funds rate below the discount
rate. As usual, dealer lending rates at the
New York City banks followed the Fed­
eral funds rate down, but most other
short-term rates tended to anticipate the
System’s actions. With business loan
demand notably slack, commercial banks
cut their prime lending rate from 6 per
cent in late September to 5% per cent at
the year-end, and a number of banks began
experimenting with a floating prime rate
related to open market rates on commer­
cial paper. The rate on 90- to 119-day
prime paper declined by 1 % percentage
points over the quarter to 4% per cent at
the year-end, and the rate on 60- to 89-day




CD’s declined by IV2 percentage points to
about 4 per cent.
Treasury bill rates continued to be de­
pressed relative to other short-term rates
by persistent demand for bills from for­
eign countries trying to retard the appre­
ciation of their currencies against the
dollar. In the intermediate Treasury mar­
ket, yields dropped from 6 per cent in late
September to 5% per cent in early Novem­
ber, and banks and Government securi­
ties dealers built up massive positions
during the Treasury’s November refund­
ing. In this situation, the Desk resorted to
heavy purchases of Treasury coupon
issues, and moderate purchases of Federal
agency issues, in supplying seasonal
reserve needs in late November and early
December. These purchases helped cush­
ion the upward pressure on interest rates
of the overhang of undistributed Treasury
securities and avoided adding to the down­

356

FEDERAL RESERVE BULLETIN □ APRIL 1972

ward pressure on bill rates from foreign
buying. Over the quarter, purchases of
Treasury coupon issues amounted to $858
million while $389 million of Federal
agency purchases'brought that portfolio
up to $485 million at the year-end.
Long-term interest rates worked gen­
erally lower over the final quarter. The
corporate bond m arket su ccessfu lly
worked through a heavy November
calendar with some rise in yields. But by
the year-end the yield on Aaa-rated issues
was about 1XA per cent, down about 88
basis points from mid-August and 35
basis points on the year. Municipal bonds
moved to new low yields for the year in
October, but gave up about half of the
post-August improvement before yields
turned down again in December. At the
year-end, the Bond B uyer’s index of 20
municipal bonds stood at 5.02 per cent,
down 101 basis points from mid-August
and 56 basis points from a year earlier.
Implicit mortgage yields in the FNMA
auction of 4-month purchase commit­
ments declined gradually to 7.63 per cent
in mid-December, compared with rates of
8.07 per cent on 3-month commitments
auctioned in late July and 8.51 per cent
in mid-December 1970.

sidual. While many banks probably em­
ploy this general approach, a large num­
ber of sophisticated banks recognize that
they have considerable leeway to manage
their liabilities so that their lending and
investment decisions need not be con­
strained by near-term deposit flows. The
aggressive bank can readily increase its
liabilities, and assets, within limits by
recourse to the Federal funds, CD, and
Euro-dollar markets if loan and investment
opportunities offer profitable prospects.
To some degree, these banks in the aggre­
gate can also fall back on borrowings from
the discount window if the Desk provides
nonborrowed reserves sparingly.
What the Desk’s operations do affect
is the opportunity cost of reserves to all
banks— through either Federal funds or
close alternatives. As these effects feed
back over subsequent weeks and months
to affect bank decision-making and the
loan demands and asset preferences of
bank customers, aggregate bank credit and
the various measures of the money supply
begin to be affected. Even then, such
external forces as shifts in business de­
mands for loans and for demand deposits
can exert powerful influences tending to
delay or speed up the response of the
banking system to System-engineered
changes in the marginal cost of reserves.
In 1971 a major part of the System’s
impact on bank credit and interest rates
in the capital markets came through the
changes it set in motion in the investment
strategies of major banks, Government
securities dealers, and others. Business de­
mand for bank loans was notably quiescent
during the year in contrast to the dynamic
strength of some earlier years, which
had had such a strong impact on bank
behavior and bank balance sheets. An
increasing number of banks turned to
aggressive portfolio management as well
as to increased mortgage and consumer

to

The transmission of monetary policy
bank behavior and interest rates.

In contrast to the close relationship be­
tween the Desk’s provision of nonbor­
rowed reserves and the rates on Federal
funds and various short-term instruments,
the linkages between System open mar­
ket operations, bank behavior, and long­
term interest rates are more complex and
the reaction time may either be quite short
or extend over several months. One can
hypothesize an orderly process in which
banks project deposit growth and loan
demands, based on a particular eco­
nomic and financial outlook, with port­
folio strategy emerging largely as a re­



OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

lending in their efforts to maintain or boost
earnings in an environment of generally
lower interest rates. Expanded short-term
trading in Government, Federal agency,
and municipal issues had already been
spurred by the 1969 revisions in the tax
laws, which essentially removed the fa­
vorable treatment formerly given long­
term capital gains. Since that time,
securities trading has been much less
inhibited by tax considerations than pre­
viously, when the alternation of profit and
loss years often dominated bank portfolio
activities.
The short-term nature of securities specu­
lation. In moving to a more aggressive
portfolio strategy, the trading banks
markedly shortened their time horizons
for trading. In 1970 and 1971 many banks
set up securities trading operations, which
were often separate from their normal
investment activities. The trading ac­
counts sought to profit from price swings
over a few weeks or even days, as well as
by taking speculative positions when in­
terest rates were expected to move lower
over the next 2 or 3 months. In effect,
these banks joined the professional under­
writers of Treasury, Federal agency, and
municipal debt issues in trying to antici­
pate the course of interest rates in order
to make short-term profits.
The investment strategy of trading
banks, Government securities dealers, and
other short-term holders depends upon the
expectations of these groups concerning
the behavior of interest rates over the next
several months. These professional in­
vestors are keenly sensitive to any sugges­
tion from their analyses pointing toward
changes in monetary or fiscal policy, or
any other factors that might affect the
interest rate outlook. Their common ob­
jective is to anticipate the movement of
rates before the general body of bank
and nonbank investors. Most of these



357

professionals probably have a profit hori­
zon no longer than 2 to 4 months in taking
major positions in intermediate- or longerterm debt securities.
Adding to the extreme sensitivity of
participants in the market is the highly
leveraged nature of their operations.
Nonbank dealers in Government securi­
ties often hold securities equal to 15 or
20 times net worth, so that a 2 per cent
fall, or rise, in the market value of their
assets would lower, or raise, their net
worth by one-third. Accordingly, these
firms are likely to react quickly to pro­
tect their capital if interest rates rise
contrary to their expectations. Their
capital can be seriously impaired if they
misjudge the direction or even the timing
of changes in rates. Conversely, the
successful anticipation of a decline in
interest rates offers the prospect of sub­
stantial capital gains. Bank dealers in
Government securities undertake similar
risks— comparable in kind, if not gener­
ally in degree, to that taken by the non­
bank firms.
The System’s influence on securities trad­
ing. The System exerts its impact on the
interest rate expectations and portfolio
commitments of dealers, trading banks,
and others through the policy actions,
speeches, testimony, and informal con­
tacts of System officials with the financial
community and through the conduct of
open m arket o p eratio n s under the
FOM C’s directives. Market participants
analyze Desk actions to gain an idea of
the desired Federal funds rate range or
other FOMC objectives. The rate serves
as an indicator of the System’s desired
throttle setting for the provision of non­
borrowed reserves to the banks. The
Desk’s purchases of coupon issues, while
accepted as a normal instrument of open
market operations, at times tend to be
regarded in the market as efforts to re­

358

FEDERAL RESERVE BULLETIN □ APRIL 1972

lieve supply pressures and hence serve
to encourage rate declines or discourage
increases. In the past 2 years, market par­
ticipants have followed closely the be­
havior of M x as likely to foreshadow
changes in the System’s weekly targets.
The importance attached to this indicator
reflects the increased significance given
to it by the FOMC.
The System’s changing policy thrust in
1971 was clearly reflected in the way in
which Government securities dealers and
weekly reporting banks managed their
holdings of Government securities matur­
ing in over 1 year. And the shifts in these
holdings gave major impetus to changes
in interest rates on intermediate-term
Government securities during the past 15
months.
In the fourth quarter of 1970 the non­
bank dealers and the weekly reporting
banks used the Treasury’s November
financing (announced on October 27) as
the occasion to add heavily to their posi­
tion in over-1-year securities (Chart 8).
Yields on 3- to 5-year Government issues
dropped by Vz of a percentage point by
m id-N ovem ber as these tw o groups

emerged with almost $1.9 billion more
over-1-year securities than they held on
September 30. (The net positions of other
holders declined by a like amount.) In
the final 6 weeks of the year, yields de­
clined another % of a percentage point to
around 6 per cent as the Trading Desk pur­
chased $536 million of over-1-year securi­
ties— essentially from the positions of the
dealers and weekly reporting banks.
After the turn of the year, market ex­
pectations of a further decline in interest
rates were still strong. The Trading Desk
was aggressively pushing the Federal
funds rate lower and the sluggish be­
havior of M, in the fourth quarter en­
couraged professional investors to expect
continuing ease. As interest rates fell
further, dealers built up their positions in
over-1-year issues by about $1 billion
to a record $2 billion near the end of
January and then distributed most of the
increase at rising prices to banks and others
over the next 3 weeks. Thus, they ac­
counted for little of the $4.1 billion net
rise in such debt outstanding in public
hands after the year-end as a result of the
financing. Weekly reporting banks in­
creased their holdings of over-1-year
issues by over $1.5 billion while other
public holders, which had reduced such
holdings by $1.3 billion in the fourth
quarter, added $2.6 billion of these issues.
After mid-February, interest rates tumbled
still further. Desk purchases of $687
million of over-1-year securities con­
tributed to a further steep decline in in­
terest rates, which carried the 3- to 5-year
rate down to 4% per cent by mid-March.
The Committee’s decision on April 6
to move toward firmer money market
conditions, and the Desk’s response to
continuing overruns in Mx during April,
led to a drastic revision in interest rate
expectations. System purchases of $196
million of over-1-year issues in the April

o

U.S. GOVERNMENT SECURITIES-

0

IN T E R E S T RATES, H O LD IN G S , A N D S Y S TE M P U RCH ASES

PER CENT

9 /3 0

11 /18

1970




1 2 /3 0

2 /1 7

3 /3 1

5 /1 9

6 /3 0

1971

8 /1 8

9 /2 9

11/17

1 2 /2 9

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

14 statement week took a portion of the
securities being pressed for sale. But the
yield on 3- to 5-year issues rose in
almost a straight line to 6 Va per cent by
mid-May as the dealers and weekly report­
ing banks together reduced their posi­
tions by about $700 million. The rise of
W 2 percentage points in yield was more
than double the increase in the Federal
funds rate over the interval. Concern over
the rapid growth of M u the persistence
of inflation and discouragement over Gov­
ernment leadership in this area, and the
international monetary situation reinforced
expectations of higher rates.
At the higher interest rates, other in­
vestors were willing to absorb still another
$800 million of over-1-year issues from
these two groups over the next 3 weeks.
At the end of the second quarter, the
Government securities dealers had almost
eliminated their inventories of over-1-year
issues while the weekly reporting banks
held $200 million less than 3 months
earlier despite a build-up of over $ 1
billion in late June by virtue of a Treasury
note financing. In the 6 weeks that pre­
ceded the President’s mid-August pro­
gram, the weekly reporting banks (ex­
clusive of the bank dealers) again turned
to cutting their inventories as M x con­
tinued to grow and the Desk continued to
resist by pushing up the Federal funds
rate. However, by the time of the Treasury
financing in late July, both the dealers and
the weekly reporting banks appeared
ready to assume some underwriting risk at
the higher yields.
The dealers responded to the President’s
program by bidding up prices actively in
the course of rebuilding their speculative
positions by $600 million in over-1-year
issues in the 4 weeks ended September 8 .
System open market purchases of $346
million in late August and September
helped first to foster the decline in rates



359

and then to relieve positions when market
uncertainties about Phase II developed
in September. Most of the strong impetus
to lower interest rates came, however,
from strong expectations about what
future System policy would be rather
than from observed open market opera­
tions. There was also renewed hope that
the new incomes policy would dampen
inflation.
As October progressed, market par­
ticipants saw the Desk move the Federal
funds rate downward successively, in line
with their expectations. The sluggish be­
havior of Mx and lackluster business
news reinforced expectations that a still
more expansive System policy would be
forthcoming. The weekly reporting banks
joined the Government securities dealers
in adding to positions in October, pushing
yields on 3- to 5-year issues down about
V2 of a percentage point in the process.
At the lower yields, tremendous enthu­
siasm developed among all investors in
the Treasury’s pre-refunding in late
October. Accordingly, the over-1-year
positions of dealers were $2.1 billion
higher on November 17 than at the end
of September, and the weekly reporting
banks showed a similar increase. Other
public holders, which had been selling
earlier, also subscribed heavily so that
their positions rose by $5.6 billion. Not
surprisingly, this enormous overhang of
new securities exerted some upward
pressure on yields, despite the continued
easing of money market conditions by open
market operations and two cuts in the
Federal Reserve discount rate. However,
System purchases of $824 million of
over-1-year Treasury coupon issues dur­
ing the last 7 weeks of the year largely
contained the upward pressure. There was
also relief at the absence of foreign selling
of Treasury bills, and yields were again
tending lower at the year-end.

360

FEDERAL RESERVE BULLETIN □ APRIL 1972

The effect of bank investment strategy on
bank credit. The shifts in bank and dealer
behavior triggered by monetary policy
left an important trace on bank credit as
well as on interest rates. First, the loan
demands of Government securities deal­
ers and other underwriters provided an
exogenous credit demand. Then there was
the aggressive pursuit of short-term gains
by banks— in tax-exempt and Federal
agency as well as Government issues. In
this way, a major part of the outpouring
of new securities by these issuers was
underwritten by the dealers and trading
banks and more solidly placed over time
with the banking system. The major banks
financed the dealers and their own posi­
tions in part through the issuance of CD’s
and other short-term liabilities. The Sys­
tem ’s pursuit of aggressive ease early
in the year also provided a sharp rise in
bank time deposits as individuals switched
from the Treasury bill market. When the
dealers and trading banks sharply reduced
their underwriting positions in the AprilAugust period, there was corresponding
pressure on the growth in bank liabilities—
through a reduction in their financing
needs and reduced switching of savings
from the markets to the banks.
The three main phases of System policy
stand out clearly in Chart 9. In the fourth
quarter of 1970, in which Mj was growing
slowly, bank portfolios and dealer loans
were growing rapidly. The pace of port­
folio growth accelerated in the first quarter
of 1971 to an annual rate of 14 per cent,
more than compensating for some decline
in dealer lending. Loan growth was com­
paratively sluggish. In the 5 months that
ended in August, there was a marked de­
cline in the growth of bank investments
while dealer lending fell still further.
Loan growth picked up in this period—
chiefly because of the growth in consumer
and mortgage loans, although business

loans also spurted in August as corpora­
tions moved funds abroad. With the swing
in expectations brought by the President’s
program, bank investments in municipal
and Federal agency issues spurted over the
last 4 months, and lending to securities
dealers also rose substantially. However,
the banks’ net acquisition of short-dated
Treasury issues was less than seasonal as
foreign central banks financed most of the
Treasury’s seasonal need. Mortgage and
consumer loans continued to grow at a
good pace, but business loans relapsed
into quiescence.




BANK CREDIT, MONEY SUPPLY, AND
BANK CREDIT PROXY
BILLIONS OF DOLLARS
310

BILLIONS OF DOLLARS
180

SEPT.

DEC.

1970

JUNE

SEPT.

___ 1971

L oans are at all co m m ercial banks.

The System-induced swings in invest­
ment strategy and in bank intermediation
were also reflected in the behavior of total
liabilities during the year. As the System
pushed short-term rates lower in the
fourth quarter of 1970, the adjusted credit
proxy rose at a 7.8 per cent annual rate
in that quarter and M2 at an 8.8 per cent
rate, while M, grew at a 3.8 per cent rate.
In the first quarter of 1971, M2 grew at an

OPEN MARKET OPERATIONS IN DOMESTIC SECURITIES

18.1 per cent rate while the proxy rose at a
10.9 per cent rate, as banks used the
System-induced inflow of time deposits
to replace Euro-dollar and other highcost liabilities. M t grew at a 9.1 per cent
rate in the first quarter. In the 5 months
ended in August, the proxy slowed down
to about an 8 per cent growth rate, re­
flecting the System’s posture of increasing
restraint on reserves with its associated
change in the banking system’s cost/profit
calculus. The System-induced rise in
short-term interest rates also cut back on
the switching of funds from marketable
securities to the banks and M2 growth
slowed to a 9.6 per cent annual rate.
The growth in M , continued strong at
9.1 per cent. Finally, in the last 4 months
of the year, as the System pressed short­
term rates lower, time deposit growth
speeded up sharply. The bank credit proxy
grew at a 9.3 per cent rate over the in­
terval, and M 2 at a 6.7 per cent rate. M x,
however, slowed to a 0.3 per cent growth
rate.
SOME LESSONS OF THE 1970-71
EXPERIENCE

The divergent behavior of the monetary
and credit aggregates during the recent
past provides additional evidence on the
Committee’s continuing problem of spec­
ifying the intermediate-term objectives
of open market operations. The fluctuating
behavior of
made it a peculiarly elu­
sive target in the particular economic
environment prevailing during this period.
did not respond quickly to the chang­
ing impact of open market operations on
reserves and interest rates. At the same
time, Mi did respond to variations in the
public’s demand for it for precautionary
and other reasons that are imperfectly un­
derstood. In particular, precautionary
balances apparently were built up in the
second quarter, when concern with infla­



361

tion and unemployment was high, and re­
duced later in the year after the President’s
new economic program raised hopes of
progress on both these fronts.
Recent experience suggests that M x re­
sponds only slowly to the changes in non­
borrowed reserves and the Federal funds
rate initiated by System open market
operations. To be sure, the decline in the
Federal funds rate from October 1970 to
February 1971 was followed by a more
rapid growth of M x beginning in Feb­
ruary. And the rise in the Federal funds
rate from March to August was followed
by a retardation of growth in M x in
August. But the lag in the response of
M, appears rather long, perhaps on the
order of 4 to 6 months, although inde­
pendent shifts in the public’s demand
schedule for M x during the period may
well have distorted M t ’s actual response
to System operations.
On the other hand, both M2 and the
credit proxy were reasonably sensitive to
the System’s influence, exerted through
short-term interest rates. The time and
savings deposits included in M 2 responded
to System-initiated changes in the attrac­
tiveness of such deposits relative to
short-term marketable securities. The
adjusted bank credit proxy— which in­
cludes C D ’s, Euro-dollars, and Treasury
deposits— incorporated the member bank
response both to these savings inflows
and to the changing interest rate outlook
as it affected bank portfolios. Both M2 and
the credit proxy responded to shifts in
open market operations within 1 to 3
months— with the credit proxy the more
stable of the two series.
The Committee, of course, did not con­
centrate solely on monetary aggregates
during 1971. In the second quarter, in par­
ticular, it was very much concerned that a
substantial rise in long-term interest rates
might undermine the economic recovery

362

FEDERAL RESERVE BULLETIN □ APRIL 1972

then under way. The System’s moves
toward restraint were accordingly more
gradual than they would have been had
M i been the sole guide. M2 and the bank
credit proxy did" reflect fairly promptly
the Committee’s shift in direction. Their
behavior, in combination with the move­
ment in interest rates, suggests that open
market operations were exerting a drag
on bank credit creation during the summer
even though
was growing rapidly.
The Committee’s formulation of its
quantitative policy strategy depends upon
the kind of relationships it perceives
between the aggregates and economic
activity, and upon the protection that a
given strategy offers against major error.
This report has not focused on the larger

policy issue of which measures of mone­
tary expansion and credit conditions
most accurately indicate the degree of
financial stimulation or restraint appro­
priate to the particular needs of the
economy. From the D esk’s vantage point,
however, the 1970-71 experience sug­
gests that the Committee is better served
by an examination of the full range of
information provided by the three aggre­
gates and interest rates than by pre­
occupation with any single measure. In
terms of operating instructions, the Com­
mittee may find it desirable to use all
three aggregates as a protection against
unforeseen, and often temporary, de­
mand shifts affecting a particular aggre­
gate.
□




Changes in Time and Savings Deposits
at Commercial Banks
O c to b e r 1 9 7 1 -J a n u a ry 197 2
In the 3 months ending January 31, 1972,
interest rates offered on negotiable cer­
tificates of deposit in denominations of
$ 100,000 or more moved steadily lower
at most large commercial banks, along
with other open market interest rates. In
the area of consumer time deposits, where
rates in general respond more slowly to
changes in market interest rates, most
commercial banks continued to pay de­
positors the maximum rates permitted by
supervisory authorities. Nevertheless, a
relatively small number, but an appreci­
able proportion of all large banks, lowered
offering rates on small-denomination time
deposits other than passbook savings
accounts.
Lower rates were in prospect on savings
deposits— at least temporarily— at a siz­
able number of banks. Some of the largest
banks that hold substantial amounts of
these deposits announced early in 1972
that they would lower the offering rate on
regular savings from AV2 to 4 per cent on
February 1, and in some cases on March 1.
That these rate reductions may be tem­
porary was indicated by one large bank
that reduced its rate on savings deposits
by V2 of a percentage point on February 1
N o t e . — Caroline H. Cagle of the Board’s Division of
Research and Statistics prepared this article.
1Previous surveys of time and savings deposits at all
member banks were conducted by the Board of Gover­
nors in late 1965, in early 1966, and quarterly beginning
in 1967. Beginning in 1968 the surveys were expanded
to provide figures for all insured commercial banks and
were conducted jointly by the Board of Governors and
the Federal Deposit Insurance Corporation. The results
of earlier surveys have appeared in B u l l e t i n s for 1966­
71, the most recent being Jan. 1972, pp. 17-30.
Appendix tables for this article appear on pp. 369-73.




of this year but announced in March its
intention to return to the 4 V2 per cent
ceiling on April 1.
These developments reflect changes
in market rates of interest. In the period
covered by this survey,1 short-term open
market rates declined almost steadily,
after having risen substantially over the
spring and early summer of 1971. By the
end of January 1972 the rate on 3-month
Treasury bills, for example, was near the
low point reached in March 1971. Long­
term rates also fell but by more modest
amounts than short-term rates. In this
period the prime loan rate was lowered
from 5% to 4%^4% per cent, and the Fed­
eral Reserve discount rate was reduced
from 5 to 4% per cent.
With inflows into consumer-type time
deposits large, and with loan demand slug­
gish, banks were less interested in inflows
of large-denomination time deposits in the
October-January period than they had
been in earlier quarters. Offering rates on
short-term large negotiable CD ’s were cut
sharply at most banks in the 3 months
ending January 31 in order to keep these
rates in line with market yields on com­
peting instruments. Growth in large ne­
gotiable CD ’s virtually ceased, and the rate
of increase in other large-denomination
time deposits slackened. On the other
hand, offering rates were maintained at
ceiling levels by most banks on pass­
book savings and, with the exceptions
noted earlier, on other consumer-type time
deposits—probably in part because com­
peting savings institutions had not lowered
rates. As a result, many small depositors
363

FEDERAL RESERVE BULLETIN □ APRIL 1972

364

found bank offering rates attractive, and
inflows into savings and other smalldenomination time deposits were sub­
stantially larger than they had been in
the preceding quarter.

movements made the AV2 per cent rate
paid by most banks attractive, along with
such advantages as ready accessibility of
funds and, in some banks, interest from
day of deposit to day of withdrawal.
Many small depositors were clearly
seeking the highest bank rate available.
Small-denomination C D ’s and open ac­
count time deposits with maturities of 2
years of more— on which a majority of the
banks were offering the highest permis­
sible rate (5% per cent)—expanded by
$2.1 billion (9 per cent) in the most redent
quarter. This was almost twice the in­
crease in the preceding quarter, when the
spread between the highest bank rate on
these deposits and the market yield on
Treasury bills, for example, had been
much narrower. Growth in these longmaturity, high-yield deposits was greater
than the combined increase in all other

Total time and savings deposits held by
individuals, partnerships, and corpora­
tions (IPC) at insured commercial banks
amounted to $242.3 billion on January
31, 1972— about $7.5 billion (3 per cent)
greater than 3 months earlier (Table 1).
This increase was nearly one-third more
than the growth in the preceding quarter.
Depositors added $3.4 billion to their
holdings of regular savings deposits in the
October-January period; this was twice
the growth in the preceding quarter. The
decline in market interest rates and the
uncertainty concerning future interest rate

TABLE 1
TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY
INSURED COMMERCIAL BANKS ON SURVEY DATES, APRIL 1971—JANUARY 1972
N um ber o f issuing banks
Type o f deposit

A m ount (in millions o f dollars)
1972

1971

A pr. 30

July 31

Percentage change
in deposits
(quarterly rate)

Jan. 31

July 31— Oct. 31,1971Oct. 31,1971 J a n .31,1972

July 31

Total time and savings deposits...........

13,413

13,438

13,452

13,440 222,255 229,062 234,786 242,296

2.5

3 .2

Savings.............................................

12,960

12,958

12,993

13,030 104,249 105,940 107,514 110,931

1.5

3 .2

13,128

13,248

13,175

81,297

83,427

84,990

89,124

1.9

4.9

12,242
12,224
10,521

12,332
12,455
10,653

12,318
12,382
10,789

42,863
18,893
19,541

43,646
18,976
20,804

43,909
19,058
22,024

45,300
19,725
24,099

.6
.4
5.9

3.2
3.5
9 .4

(5.6)

(6.7)

All m aturities:
Open accounts—
Passbook or state­
m ent form 1...........

Jan. 31

1972

Apr. 30

Time deposits in denominations
of less than $100,000—Total. . 13,142
A ccounts with original m a­
turity o f—
Less than 1 year............ 12,157
1 up to 2 years............... 12,305
2 years or m o re ............. 10,350

Oct. 31

1971
Oct. 31

3,225

3,233

3,297

3,440

Time deposits in denominations
of $100,000 or m ore.................
Negotiable C D ’s ...................
Nonnegotiable C D ’s and
open acco u n t.....................

5,838
3,087

5,816
3,067

5,894
2,972

6,004
3,224

30,744
21,418

33,490
23,525

36,009
25,435

36,792
25,591

7.5
8.1

2.2
.6

3,397

3,388

3,492

3,359

9,325

9,965

10,574

11,201

6.1

5.9

Christmas savings and other
special funds...............................

8,274

8,324

8,048

8,151

5,964

6,205

6,272

5,450

1.1

- 1 3 .1

1 Includes time deposits, open account, issued in passbook, state­
ment, o r other forms th at are direct alternatives for regular savings
accounts. M ost o f these are believed to be in accounts totaling less
than $100,000.
N o t e .—D ata were compiled jointly by the Board o f Governors of
the Federal Reserve System and the Federal Deposit Insurance
C orporation. For Apr. 30 and July 31, 1971, and Jan. 31, 1972, the




(21,258) (22,068) (23,307) (24,865)

information was reported by a probability sample o f all insured
commercial banks; for Oct. 31, 1971, the data for member banks
were reported by virtually all such banks and for insured nonmember
banks by the same sample o f these banks reporting in earlier surveys.
Some deposit categories include a small am ount o f deposits out­
standing in a relatively few banks that no longer issue these types o f de­
posits and are not included in the num ber o f issuing banks. Dollar
am ounts may not add to totals because of rounding.

CHANGES IN TIME AND SAVINGS DEPOSITS

small-denomination, short-maturity time
deposits on which ceiling rates were lower.
Bank holdings of time deposits in de­
nominations of $ 100,000 or more in­
creased only $780 million (2 per cent) in
the October-January period. Four-fifths
of this growth was in nonnegotiable CD ’s
and open account time deposits, which
are held to a considerable extent by con­
sumers, as contrasted with negotiable
CD ’s which are held mainly by businesses.
The greater growth in nonnegotiable CD ’s
probably reflects the fact that many banks
were offering somewhat higher rates on
nonnegotiable than on negotiable C D ’s on
January 31.
Time deposits in special fund accounts
declined by $820 million in the latest
survey period, reflecting in large part a
seasonal movement. Christmas club ac­
counts, which are an important part of this
total, are built up over the year to a peak in
the autumn and are paid out in November.
The decline in these deposits in the 3
months ending January 31 amounted to 13
per cent— about the same as the reduc­
tion in the comparable period of last year.
Both small and large banks experi­
enced an expansion in their holdings of
time and savings deposits in the most re­
cent period, amounting to about 3.5 per
cent for large banks (total deposits of $100
million and over) and to about 5 per cent
for smaller banks. At large banks one-half
of the growth was in passbook savings
whereas at smaller banks such deposits
accounted for only one-fourth of the in­
crease. The greater growth in passbook
savings deposits at large banks may re­
flect in part a tendency to discourage ex­
pansion in deposits carrying rates of in­
terest greater than 5 per cent by lowering
the offering rate or by other means. On
the other hand, most small banks con­
tinued to offer the ceiling rates on con­
sumer-type time deposits.



365

RATE CHANGES AND RATE STRUCTURE

On small-denomination time deposits
(other than savings) about 9 out of 10 of the
issuing banks— holding more than fourfifths of the deposits— were offering de­
positors the ceiling rate on January 31,
1972 (Table 2). Nevertheless, this propor­
tion was somewhat lower than it had been
3 months earlier. Among large banks
about 20 per cent of the banks reduced
their offering rate on consumer-type time
deposits (other than savings) in the most
recent period (Appendix Table 7). Most
of these reductions were to 5 per cent on
deposit instruments with maturities of 1
year and over and to 4% per cent on shorter
maturities. The proportion of big banks,
for example, that were paying the 5% per
cent rate on maturities of 2 years and over
dropped from 85 to 74 per cent; and for
maturities of 1 to 2 years the proportion
paying 5 V2 per cent declined from 83 to
69 per cent from the end of October to the
end of January. Some large banks with
sizable amounts of these deposits out­
standing on January 31 reported in the
survey that they no longer issued these
high-interest-rate deposits, and it has been
reported elsewhere that some large banks,
although continuing to offer the ceiling
rates on these deposits, were tightening
other terms, such as raising the minimum
deposit required and/or lengthening the
maturity of the instrument.
By contrast, at small banks interest rates
on consumer-type time deposits responded
less rapidly than at large banks to changes
in open market interest rates, as had been
true in earlier surveys. As of January 31
about nine-tenths of the small banks con­
tinued to offer the ceiling rates on small
CD’s and open account time deposits, a
proportion only slightly lower than a year
earlier. The few banks of this size that
lowered their rates during the most recent
survey period were about matched by

366

FEDERAL RESERVE BULLETIN □ APRIL 1972

TABLE 2
TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON OCTOBER 31, 1971, AND
JANUARY 31, 1972, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH
CATEGORY, AND BY SIZE OF BANK
Size o f bank (total deposits in
millions o f dollars)
All banks
G roup
Jan.
31

Oct.
31

Less than 100

100 and over

Jan.
31

Jan.
31

Oct.
31

Oct.
31

Percentage distribution by most
common rate paid on new de­
posits :

3.51-4.00.......................................
4.01-4.50........................................
Time deposits in denominations o f less
than $100,000:
M aturities o f less than 1 year:
Percentage distribution by most
common rate paid on new
deposits:

4.51 5.00...............................
M aturities o f 1 up to 2 years:
Percentage distribution by most
common rate paid on new
deposits:

4.51 5.00...............................
5.01-5.25...............................
5.26-5.50...............................
M aturities o f 2 years and over:
Percentage distribution by most
common rate paid on new
deposits:

4.51 5.00...............................
5.01 5.25...............................
5.26-5.50...............................
5.51 5.75...............................
Negotiable C D ’s in denominations
o f $100,000 o r more:
Percentage distribution by most
common rate paid on new
deposits:

4.51 5.00...............................
5.01 5.50...............................
5.51-6.00...............................
6.51 7.00...............................
7.01-7.50...............................

1 Less than 0.05 per cent.




13,030 12,993

12,408

12,405

622

Jan.
31

Oct.
31

Less than 100

100 and over

Jan.
31

Jan.
31

Oct.
31

Oct.
31

Amounts o f deposits (in millions o f dollars),
or percentage distribution

N um ber o f banks, or percentage distribution
Savings deposits:

Size o f bank (total deposits in
millions o f dollars)
All banks

588 110,931 107,514 42,656 42,552 68,275 64,962

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

6.5
18.4
75.1

7 .0
17.2
75.8

6.8
18.3
74.9

7.2
17.2
75.6

1.9
19.8
78.3

2.4
17.0
80.6

2.2
19.1
78.7

2 .2
16.1
81.7

3.7
13.9
82.4

3.5
13.6
82.9

1.2
22.3
76.5

1.3
17.8
80.9

12,332 11,698

11,748

620

12,318

584 45,299 43,888 21,506 20,646 23,793 23,242

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

5.5
94.5

3.9
96.1

4.8
95.2

3.5
96.5

19.0
81.0

4.1
95.9

11.5
88.5

3.7
96.3

1.9
98.1

1.3
98.7

20.1
79.9

2.8
97.2

12,382

12,455

11,782 11,889

600

14,620 14,284

5,069

4,741

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1.4
10.2
.8
87.6

.9
9.8
1.1
88.2

1.2
9.7
.6
88.5

.9
9.6
1.0
88.5

7.8
20.0
3.5
68.7

1.3
12.2
3.5
83.0

1.7
12.4
1.1
84.8

.3
11.1
1.4
87.2

1.2
9.5
.9
88.4

.4
11.2
1.0
87.4

3.1
20.9
1.6
74.4

.4
10.7
2 .6
86.3

10,789

10,653

10,215 10,102

574

13,035 12,022 10,528

9,805

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

1.3
4.5
.3
3.8
90.1

.9
2.8
.4
3.4
92.5

1.1
4 .0
.2
3.7
91.0

.9
2.5
.4
3.4
92.8

5.4
13.3
2 .4
4.5
74.4

1.5
7.6
1.2
4 .4
85.3

.8
6.8
1.4
2 .3
88.7

.6
4 .0
.6
1.9
92.9

.4
2.1
.1
2.2
95.2

.8
1.2
.4
1.2
96.4

1.3
12.5
3.1
2.3
80.8

.5
7.3
.8
2.7
88.7

3,224

2,972

2,827

2,589

397

383 25,586 25,434

2,792

2,614 22,793 22,820

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

2 .0
20.5
23.4
35.4
7 .6
6.9
4.1
.1

9 .8
27.4
20.8
25.4
7.4
5.9
3.2
.1

1.8
19.0
20.1
37.9
8.6
7.9
4.6
.1

51.4
30.5
10.1
7.0

3.3
30.5
46.2
18.0
.8
.2
1.0

66.2
20.8
7.1
4 .0
.4
1.2
.3
0)

6.9
35.9
37.2
17.4
1.1
1.0
.5
0)

15.5
26.6
19.6
23.8
3.8
8.9
1.8
0)

1.0
13.2
25.3
42.1
6.8
8.3
3.2
.1

72.4
20.1
5.6
1.6

7 .6
38.5
38.6
14.6
.4
.1
.2

15.0
27.7
19.4
23.2
6.4
5.3
2.9
.1

.3
.7

566 19,690 19,025

551 23,564 21,827

.2
.1

367

CHANGES IN TIME AND SAVINGS DEPOSITS

banks that raised their rates to the ceiling
level.
Few banks made any change in the rate
they paid on regular passbook savings in
the 3 months ending January 31. Threefourths of insured commercial banks
holding nearly four-fifths of all passbook
savings deposits were paying the 4% per
cent maximum rate on January 31, 1972.
Nevertheless, as indicated earlier, a num­
ber of rate reductions were in prospect at
large banks beginning in February.
Although small banks do not often
change offering rates on deposits, in recent
years large banks have been adjusting
more promptly their rates on savings and
other consumer-type time deposits in ac­
cordance with changes in market interest
rates. In the past year, for example, many
of the largest banks lowered their rate on
savings deposits by % of a percentage
point to 4 per cent on April 1, 1971, moved
it back to the 4 Vi per cent ceiling on
August 1, and announced plans to lower
it again by Vi of a percentage point on
February 1 of this year. Adjustments of
this kind were also announced by these
banks in the offering rates on new issues
of the longer maturities of small-denomi­
nation CD’s and open account time de­
posits. With rates of return on earnings
assets declining in the early months of 1971
and again in early 1972, and with interest
on time and savings deposits the largest
single item of bank expenses, large banks
have been anxious to maintain a close
relationship between the rate of return on
earnings assets and the costs of time de­
posits; this is true particularly for passbook
savings, where any change in rate affects
all of the deposits of this type outstanding.
Rate changes on other small-denomina­
tion time deposits affect for the most part
new deposits and therefore have a smaller
impact on bank expenses.
Nearly four-fifths of the large banks,



which account for the bulk of all large ne­
gotiable CD’s, lowered their most com­
mon offering rate on these deposits be­
tween October and January. As of January
31, half of these banks reported that the
most common rate on such deposits was
4 V2 per cent or less. A majority had been
paying between 5 and 6 per cent 3 months
earlier.
On other large-denomination time de­
posits— nonnegotiable CD’s and open
account deposits— about half of the large
banks reduced their most common rate in
the October-January period, a smaller
proportion than for large negotiable CD ’s.
The offering rate on these deposits as of
January 31 for a majority of big banks was
5 per cent or more.
AVERAGE INTEREST RATES

The weighted average interest rate paid
on all forms of time and savings deposits,
IPC, at insured commercial banks on
January 31, 1972, was 4.70 per cent—
down from 4.85 per cent 3 months earlier
(Table 3). The major factor in the decline
was the sharp reduction in rates on largedenomination deposits.
On negotiable CD’s in denominations
of $ 100,000 or more, the average rate at
all insured commercial banks on January
31 was 4.37 per cent and on other largedenomination time deposits, 4.70 per
cent. These rates represented declines of
86 and 68 basis points, respectively, in
the 3 months ending January 31.
Reflecting a relatively few recent rate
reductions on small-denomination time
deposits (other than savings), the average
interest rate on January 31 was 5.66 per
cent on such deposits with maturities of 2
years and over, 5.39 per cent on deposits
with maturities of 1 up to 2 years, and4.90
per cent on maturities of less than 1 year—
down by 2, 4, and 8 basis points, respec­
tively. By contrast, on regular savings

FEDERAL RESERVE BULLETIN □ APRIL 1972

368

deposits, the average rate was down by
only 1 basis point— to 4.38 per cent.
The sharpest decline in rates during the
most recent quarter occurred at money
market banks— with total deposits of $500
million and over, located in Standard
Metropolitan Statistical Areas (SMSA’s)
— as might be expected in view of the
heavy concentration in negotiable CD’s

and other interest-sensitive deposits at such
banks. The average rate on all forms of
time and savings deposits at these banks
was 4.51 per cent— down 31 basis points
from 3 months earlier. For banks located
in small towns and rural areas (outside
SMSA’s) the average rate on all forms
of time and savings deposits was un­
changed at 4.96 per cent.
□

TABLE 3
AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS
DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JANUARY 31, 1972
Per cent per annum
Time deposits in denominations o f—
Less than $100,000
Bank location and size o f bank
(total deposits in millions
o f dollars)

All
time and
savings
deposits

and
small-de­
nomina­
tion time
deposits

Savings

$100,000 or more

M aturing in Total
Less
than
1 year

1 up to
2 years

2 years
or more

Nego­
tiable
C D ’s

All
other

All banks:
All size g roups................................
Less than 10................................
10-50.............................................
50-100...........................................
100-500.........................................
500 and o v e r................................

4.70
4.99
4 .9 2
4.80
4.68
4.51

4.75
4.98
4.89
4.75
4.69
4 .6 2

4.38
4.31
4.40
4.38
4.38
4.37

5.21
5.33
5.31
5.25
5.16
5.07

4.90
4.98
4.99
4.96
4.91
4.79

5.39
5.37
5.45
5.38
5.33
5.35

5.66
5.69
5.73
5.70
5.62
5.59

4.37
5.54
5.60
5.05
4.62
4.17

4.70
5.71
5.50
5.35
4.67
4.39

Banks in—
Selected large SMSA’s : 1
All size g ro u ps............................
Less than 10............................
10-50.........................................
50-100.......................................
100-500.....................................
500 and o v e r............................

4.59
4.85
4.81
4.73
4.65
4.51

4.66
4.83
4.76
4.70
4.67
4.62

4.40
4.38
4.42
4.40
4.40
4.39

5.12
5.34
5.26
5.22
5.14
5.06

4.84
4.99
4.95
4.97
4.88
4.78

5.35
5.44
5.41
5.34
5.28
5.36

5.62
5.72
5.68
5.68
5.62
5.59

4.26
5.08
5.53
5.11
4.53
4.15

4.48
5.42
5.33
4.94
4.50
4.36

All other SMSA’s:
All size g ro u p s............................
Less than 10............................
10-50.........................................
50-100......................................
100-500....................................
500 and o v e r............................

4.76
4.88
4.90
4.84
4.73
4.53

4.74
4.83
4.87
4.80
4.71
4.50

4.31
4.21
4.40
4.36
4.34
4.11

5.24
5.34
5.35
5,26
5.18
5.08

4.94
4.99
5.00
4.92
4.95
4.87

5.40
5.39
5.45
5.45
5.35
5.29

5.67
5.66
5.75
5.73
5.61
5.56

4.92
5.65
5.47
4.92
4.87
4.69

5.15
6.08
5.78
5.34
4.91
4.98

Banks outside SM SA’s:
All size g ro u p s................................
Less than 10................................
10-50.............................................
5 0-100...........................................
100-500.........................................
500 and o v er................................

4.96
5.03
4.98
4.88
4.74
4.91

4.94
5.02
4.95
4.80
4.72
4.80

4.37
4.31
4.39
4.34
4.38
4.29

5.31
5.33
5.32
5.27
5.20
5.29

4.99
4.98
5.00
4.99
4.89
5.00

5.41
5.36
5.46
5.35
5.40
5.50

5.71
5.69
5.74
5.70
5.60
5.75

5.52
5.66
5.72
5.06
4.62
6.75

5.54
5.51
5.57
5.77
5.12
4.64

1 The selected large Standard M etropolitan Statistical A reas, as defined by the Office o f M anagement and Budget and arranged by size o f popula­
tion in the 1970 census, are as follows:
New Y ork City
Los Angeles-Long Beach
Chicago
Philadelphia
D etroit
San Francisco-Oakland
W ashington, D . C.
Boston
Pittsburgh
St. Louis
Baltimore
Cleveland
H ouston
Newark

Minneapolis-St. Paul
Seattle-Everett
M ilwaukee
A tlanta
Cincinnati
Paterson-Clifton-Passaic
Dallas
Buffalo
San Diego
M iami
Kansas City
Denver
San Bemadino-Riverside
Indianapolis

San Jose
New Orleans
Tampa-St. Petersburg
Portland
Phoenix
Columbus
Rochester
San Antonio
D ayton
Louisville
Sacramento
Memphis
Ft. W orth
Birmingham

Albany-Schenectady-Troy
A kron
H artford
N orfolk-Portsm outh
Syracuse
G ary-Hammond-E. Chicago
O klahom a City
H onolulu
Ft. Lauderdale-Hollywood
Jersey City
Salt Lake City
O maha
Nashville-Davidson
Y oungsto wn-W arren

Richmond
Jacksonville
Flint
Tulsa
O rlando
Charlotte
W ichita
West Palm Beach
Des Moines
Ft. Wayne
Baton Rouge
Rockford
Jackson, Miss.

N o t e .—The average rates were calculated by weighting the m ost common rate reported on each type o f deposit at each bank by the am ount
o f th a t type o f deposit outstanding. Christm as savings and other special funds, for which no rate inform ation was collected, were excluded.




CHANGES IN TIME AND SAVINGS DEPOSITS

369

APPENDIX TABLE 1-SAVINGS DEPOSITS
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost common rate paid (per cent)
G roup

Total
3.50
o r less

M ost common rate paid (per cent)
Total

4.00

4.50

3.50
o r less

NUM BER O F BANKS

4.00

4.50

M ILLIO N S O F DOLLARS

All banks.................................................................................

13,030

858

2,392

9,780

110,931

2,409

21,188

87,334

Size of bank (total deposits in millions of dollars):
Less than 10..................................................................
10-50...............................................................................
50-100............................................................................
100-500..........................................................................
500 and o v er.................................................................

6,448
5,242
718
472
150

599
212
35
8
4

1,468
724
76
83
41

4,381
4,306
607
381
105

6,234
24,621
11,801
22,210
46,065

343
623
613
292
538

1,336
3,157
1,445
4,662
10,589

4,556
20,841
9,743
17,256
34,938

Federal Reserve district:
B oston............................................................................
New Y o rk ......................................................................
Philadelphia...................................................................

336
453
441

2
6
41

60
59
187

274
388
213

4,487
18,079
7,241

( 2)
318
533

1,179
3,272
3,304

3,291
14,490
3,405

Cleveland........................................................................
R ichm ond......................................................................
A tlanta............................................................................

759
737
1,654

72
8
79

137
96
305

550
633
1,270

10,409
7,699
8,006

441
13
221

2,856
1,427
1,421

7,112
6,259
6,364

Chicago..........................................................................
St. Louis.........................................................................
M inneapolis...................................................................

2,572
1,326
1,364

264
70
218

480
289
511

1,828
967
635

19,804
3,850
2,680

462
122
202

4,654
692
572

14,688
3,036
1,906

Kansas C ity...................................................................
D allas..............................................................................
San Francisco...............................................................

1,773
1,229
386

93
4
1

212
51
5

1,468
1,174
380

4,241
3,745
20,689

54
15
( 2)

167
54
1,591

4,020
3,677
19,085

APPENDIX TABLE 2—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING
IN LESS THAN 1 YEAR
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost common rate paid (per cent)
Group

Total
4.50
or less

M ost common rate paid (per cent)
Total

4.75

5.00

4.50
o r less

NUMBER O F BANKS

4.75

5.00

M ILLIO N S O F DOLLARS

All banks.................................................................................

12,318

675

54

11,589

45,299

5,189

558

39,5;>2

Size of bank (total deposits in millions of dollars):
Less than 10..................................................................
10-50...............................................................................
50-100.............................................................................
100-500...........................................................................
500 and over..................................................................

6,056
4,934
708
470
150

274
243
40
76
42

2
25
8
16
3

5,780
4,666
660
378
105

3,797
12,862
4,848
8,482
15,311

65
185
161
864
3,914

( 2)
21
32
187
317

3,732
12,655
4,654
7,431
11,080

302
448
315

29
85
50

15
1

273
348
264

4,223
2,442

555
326

361
( 2)

3,308
2,114

679
630
1,572

28
50
150

5
4
7

646
576
1,415

3,094
2,843
4,390

181
284
242

50
2
58

2,863
2,557
4,090

Chicago..........................................................................

2,375
1,276
1,194

104
9
48

8

2,263
1 267
1 146

10,381
2 593
2 523

916
192

5

9,460
2 401
2 520

Kansas City...................................................................
D allas..............................................................................
San Francisco...............................................................

1,854
1,310
363

44
53
25

5
3
6

1,805
1,254
332

2,539
2,532
6,145

97
241
2,092

29
14
38

2,414
2,277
4,015

Federal Reserve district:
New Y ork......................................................................
Cleveland........................................................................
A tlanta............................................................................

For notes to Appendix Tables 1-6, see p. 374.




370

FEDERAL RESERVE BULLETIN □ APRIL 1972

APPENDIX TABLE 3— TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000— MATURING
IN 1 UP TO 2 YEARS
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost com m on rate paid (per cent)
Total

G roup

M ost common rate paid (per cent)
Total

4.50
or
less

5.00

5.25

4.50
or
less

5.50

N UM BER O F BANKS

5.00

5.50

5.25

M ILL IO N S O F D O LLARS

All banks..............................................................................

12,382

188

1,260

93

10,841

19,690

335

2,443

211

16,701

Size of bank (total deposits i n millions of dollars):
Less than 10....................................................................
10-50................................................................................
50-100..............................................................................
100 500............................................................................
500 and over...................................................................

6,185
4,900
697
459
141

59
49
33
32
15

524
526
91
83
36

11
45
15
21
1

5,591
4,280
558
323
89

5,431
7,560
1,629
2,403
2,667

98
21
58
69
89

475
669
243
514
542

6
79
43
81
(2)

4,852
6,791
1,286
1,738
2,033

Federal Reserve district:
B oston..............................................................................
New Y o rk ........................................................................
Philadelphia....................................................................

220
398
362

12
35
6

22
88
79

6
15
1

180
260
276

121
751
1,169

12
33
16

12
243
252

2
20
(2)

95
454
899

Cleveland.........................................................................
R ichm ond........................................................................
A tlanta..............................................................................

697
679
1,464

21
10
31

141
111
203

7
2
6

528
556
1,224

1,186
841
1,834

54
58
23

247
139
265

16
(2)
22

868
632
1,523

C hicago.................................. ..........................................
St. L o u is. . ......................................................................

2,428
1,426
1,314

25
1
25

131
179
55

17
1

2,255
1,245
1,234

4,427
2,642
1,828

22
( 2)
74

326
379
72

27
(2)

4,053
2,259
1,682

Kansas C ity .....................................................................
D allas...............................................................................
San Francisco..................................................................

1,827
1,207
360

1
20
1

89
115
47

26
7
5

1,711
1,065
307

2,023
1,356
1,514

( 2)
38
( 2)

114
122
273

70
22
13

1,835
1,174
1,227

APPENDIX TABLE 4— TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000— MATURING
IN 2 YEARS OR MORE
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost common rate paid (per cent)
G roup

Total

M ost common rate paid (per cent)
Total

4 .50
or
less

5.00

5.25

5.50

5.75

NUM BER O F BANKS

4.50
or
less

5.00

5.50

5.25

5.75

M ILLIO N S O F DOLLARS

10,789

146

487

34

404

9,718

23,564

191

1,590

342

536

20,905

5,130
4,441
644
434
140

67
33
15
22
9

203
170
38
44
32

14
6
9
5

211
127
40
24
2

4,649
4,097
545
335
92

3,005
7,454
2,577
3,813
6,715

29
15
7
77
63

40
130
101
283
1,035

5
12
36
289

63
106
124
216
(2)

2,872
7,199
2,333
3,201
5,300

198
374
285

9
47
4

13
30
6

6
10

12
7
14

158
280
261

280
1,683
1,562

4
49
65

24
441
61

1
30

3
49
85

247
1,114
1,351

Cleveland.....................................
R ichm ond....................................

567
618
1,298

2
5
23

31
59
77

4
2

18
8
75

512
544
1,123

1,883
1,681
2,123

37
77
161

27
( 2)

58
0)
118

1,752
1,538
1,823

Chicago........................................

2,223
1,105
1,084

25

46
6
3

5
1

58
50
50

2,089
1.048
1,006

5,180
1,714
1,687

263
10
2

7

25

(2)

40
60
17

4,856
1,643
1,661

1,604
1,079
354

1
4
1

23
156
37

2
1
3

53
51
8

1,525
867
305

1,357
1,265
3,149

34
205
276

(2)
( 2)
204

74
20
12

1,245
1,020
2,654

All banks..........................................
Size of bank (total deposits in
millions of dollars):
10-50............................................
50-100..........................................
100-500........................................
500 and over................................
Federal Reserve district:
B oston..........................................
New Y ork....................................

Kansas C ity................................
D a lla s ..........................................
San Francisco..............................

F or notes to Appendix Tables 1-6, see p. 374.




( 2)

12
21
15
8

(2)
( 2)

4

371

CHANGES IN TIME AND SAVINGS DEPOSITS

APPENDIX TABLE 5— NEGOTIABLE CD’s, IPC, IN DENOMINATIONS OF $100,000 OR MORE
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost com m on rate paid (per cent)
G roup

Total

4.00
or
less

4.50

M ost common rate paid (per cent)

5.00 5.50 6.00 6.50 7.00

7 .5 0 Total
and
over

4.00
or
less

N U M BER O F BANKS

7.50
4.50 5.00 5.50 6.00 6.50 7.00 and
over
M IL L IO N S O F D O LLARS

All banks..................................

3,224

265

218

894

627

747

208

170

Size of bank (total deposits in
millions of dollars):
Less than 10.........................
10-50.....................................
50-100...................................
100-500..................................
500 and o v e r.......................

714
1,783
330
266
131

11
78
42
70
64

7
87
54
49
21

194
479
1(H)
93
28

153
357
77
31
9

140
532
47
21
7

132
71
5

73
94
2

Federal Reserve district:
B osto n ..................................
New Y o rk ............................
Philadelphia.........................

150
204
85

52
48
7

11
30
3

19
78
22

23
8
16

43
31
33

2

Cleveland..............................
R ichm ond.............................
A tlanta..................................

170
156
515

25
11
12

24
36
17

55
48
103

27
14
111

29
46
161

3
54

3
1
22

C hicago.................................
St. Louis...............................
M inneapolis.........................

521
207
126

54
5
9

30
8
9

180
92
16

84
71
35

97
8
38

44
1
1

K ansas C ity.........................
D allas....................................
San Francisco.....................

351
568
171

15
9
18

12
26
12

80
138
63

100
103
35

87
140
34

20
82
1

95 25,586 11,037 5,892 5,326 1,826 1,028

1

4
172
7
3
51
60 146 433
85 1,719
902
121
3
95 259
2 3,575
784 898 1,387
1 19,218 10,069 4,746 3,197

47
240
258
328
952

29
488
148
156
206

9
3

64
1,165 826
151
8,975 3,236 3,797 1,780
1 1,127 223
75 171

94
30
641

28
74
9

4 1,163
730
35 1,269

107

290

80

23
76
8

10
238
( 2)

1
38
11
( 2)
( 2)

( 2)
( 2)

57
O)

648
195
290

284
111
44

208
315
441

4
36
200

13
33
210

31
21
9

1 2,666 1,937
1
531 216
9
511
25

73
12
28

348
110
391

114
172
31

182
4
30

( 2)
( 2)

32
33
6

903 231
5
37 2,681
789
2 3,864 2,419

49
587
682

381
438
679

132
319
52

92
327
26

2
50
( 2)

( 2)

4

1

1

37

( 2)
20

26

8

4 ( 2)
3 ( 2)
2
2
14
142
5

1
29
( 2)

APPENDIX TABLE 6— NONNEGOTIABLE CD’s AND OPEN ACCOUNT DEPOSITS, IPC, IN DENOMINATIONS
OF $100,000 OR MORE
Most common interest rates paid by insured commercial banks on new deposits on January 31, 1972
M ost common rate paid (per cent)
G roup

M ost com m on rate paid (per cent)

Total

Total
4.00
or
less

7.50
4.50 5.00 5.50 6.00 6.50 7.00 and
over

4.00
or
less

NUM BER O F BANKS

7.50
4.50 5.00 5.50 6.00 6.50 7.00 and
over
M ILLIO N S O F DOLLARS

280 1,054

581

688

158

154

183 11,192 3,877 1,377 3,402

17
67
49
91
37

54
119
40
51
16

128
573
191
121
41

186
275
75
39
6

148
405
90
39
6

13
135
4
5
1

33
114
2
3
2

23
152
4
3
1

124
192
141

23
43
19

17
25
22

41
93
44

8
8
13

10
12
30

1
1
1

24
8

70
235
2 3,035 1,276
12
404
118

Cleveland......................................
R ichm ond.....................................
A tlanta..........................................

298
288
508

28
14
22

7
14
36

120
120
141

107
38
105

11
63
97

1
27
39

3
3
19

21
538
9
958
49 1,051

C hicago.........................................
St. Louis........................................

511
373
134

41
35

84
47
1

135
84
38

68
48
51

117
76
17

11
22
20

54
28
7

1 1,410
33
381
91

Kansas C ity..................................

282
397
111

10
6
20

11
8
8

95
104
39

56
61
18

95
154
6

3
17
15

5

All banks...........................................

3,359

261

Size of bank (total deposits in
millions of dollars):
Less than 10.................................
10-50..............................................
50-100............................................
100-500..........................................
500 and o v e r................................

602
1,840
455
352
110

New Y o rk ....................................

Federal Reserve district:

San Francisco..............................

F or notes to Appendix Tables 1-6, see p. 374.




3

152
5
1,086
35
1,360
110
2,681
882
5,912 2,847

4
36
81
362
76 372
343 782
873 1,849

902 1,224

34
216
239
305
107

43
209
545
286
141

170

2
49
4
64
( 2)

105

135

4
25
61
72
5
( 2)
1
18
( 2)
( 2)

13 (2)
113 ( 2)
21 ( 2)

11
8

49
49
212

73
427
124

( 2)
55
42

4
9
16

5
11
28

838
83
42

99
23
14

118
52
15

4
8
13

37
9
2

( 2)
15

94
220
362

40
264
18

53
213
2

1
6
11

2

100
606
11

25
982
107

16
30
88

225
184
239

22
38
86

158
186
304

156
139

149
51
( 2)

7
333 101
47
760
13
2 1,996 1,357

29
37
244

6

( 2)
44

10
6
(2)

372
APPENDIX TABLE 7— INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS,
IPC, BETWEEN OCTOBER 31, 1971, AND JANUARY 31, 1972
Tim e deposits in denom inations o f—
Less than $100,000 m aturing in

Savings
Less than 1 year

$100,000 o r more

1 up to 2 years

2 years and over

Negotiable C D ’s

All other

G roup

All
size
groups

Size o f bank
(to tal deposits
in millions
o f dollars)

U nder
100

13,025

12,405

620

Under
100

12,319

11,701

100
and
over

618

All
size
groups

Size o f bank
(total deposits
in millions
o f dollars)
100
and
over

U nder
100

12,379

All
size
groups

11,780

599

Size o f bank
(total deposits
in millions
o f dollars)

U nder
100

10,834

10,261

AH

Size o f bank
(total deposits
in millions
o f dollars)

groups

100
and
over

U nder
100

573

3,236

100
and
over

A11
size
groups

Size o f bank
(total deposits
in millions
o f doUars)

U nder
100

100
and
over

2,840

396

3,352

2,892

460

100.0

100.0

7 .4

PERCENTAGE D IST R IB U T IO N O F N U M B ER O F BANKS IN G R O U P *

N o change in rate,
Oct. 31, 1971—Jan. 31,
1972................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

9 6 .8

96.9

96.1

95.1

96.0

78.0

91.1

91.9

74.8

89.4

90.0

43.3
78.4

30.7
37.2

40.2

15.4

41.5

Banks raising ra te ...............
New m ost com m on
rate 1 (per cent)

.7

.7

.5

.7

.7

1.6

3.1

3.1

3.2

2.5

2.5

2.1

8.9

9.5

3.8

10.3

10.8

3 .5 1 -4 .0 0 .................
4 .0 1 -4 .5 0 .................
4 .5 1 -5 .0 0 .................
5.01 5 .2 5 .................
5 .2 6 -5 .5 0 .................
5.51 5 .7 5 .................
5 .7 6 -6 .0 0 .................
6 .0 1 -6 .2 5 .................
6 .2 6 -6 .5 0 .................
6 .5 1 -6 .7 5 .................
6 .7 6 -7 .0 0 .................
7 .0 1 -7 .5 0 .................
7 .5 1 -8 .0 0 .................
8 .0 1 -8 .5 0 .................

m 7

(2 )7

.5

.1
.7

.1
.6

.1
.5
.3
2 .8
1.2
1.2
.1
.6
.9
.5

.5
.2
3.1
1.1
1.4
.1
.6
1.0
.6
.7
.1

.8
1.0
.3
1.5

.9
.7
.1
1.3
1.0
1.6
1.1
.6

.1
1.0
.6
.1
1.2
.8
1.7
1.3
.6

1.7
2 .2
.7
.2
.2

1.3
.5
1.2

1.5
.5
1.3

.2
.2
.4




.2
1.6

.1

.1

.3

( 2)
2 .9

( 2)
2.9

2.7

'

.2

( 2)

( 2)

.1
2 .4

2
A
2.4

1.7

.1

.3

1.5

FEDERAL RESERVE BULLETIN □ APRIL 1972

N um ber o f issuing banks,
January 31, 1972...........

100
and
over

AH
size
groups

Size o f bank
(total deposits
in millions
o f dollars)

Banks introducing new in­
strum ent ........................
M ost com m on rate 1
(per cent)
4 .0 0 o r less...................
4 .0 1 -4 .5 0
4 .5 1 -5 .0 0
5 .0 1 -5 .2 5
5 .2 6 -5 .5 0
5 .5 1 -5 .7 5
5 .7 6 -6 .0 0
6 .0 1 -6 .2 5
6 .2 6 -6 .5 0
6 .5 1 -6 .7 5
6 .7 6 -7 .0 0
7 .0 1 -7 .5 0
7 .5 1 -8 .0 0
8 .0 1 -8 .5 0

2.1

2.1

3 .4

3.2

2.3

19.9

5 .0

4.1

21.2

5 .0

.2
1.9

.2
1.9

.2
3.2

.6
.8
1.5
.3

.5
.5
1.0
.2

2.3
5.3
9 .9
2.4

.5
.2
.6
3.1
.6

.4
.1
.5
2.6
.5

1.2
1.7
4 .0
12.5
1.8

.6
.1
.3
2.6
.2
1.1

.4

.4

1.0

.4

.4

(2).1<
.9

* Shaded areas indicate th at rates shown in the stub are higher
than the m aximum permissible rate on the various instruments.
1 F o r description o f m ost com m on rate, see N o t e to Table 2,
p. 374.

.5

( 2)

.1
.9

.5

.9
( 2)
( 2)

.9

.8
.2
.2

(2)
.3

.3

.6

.6

.5

3.2
(2)
( 2)
1
.3
2.5

17.6

35.4

29.3

7 9 .0

32.5

28.8

55.2

.5

1.2
1.9
1.0
8.4
1.9
3.1

1.3
5.8
5 .4
14.1
1.9
2.7
1.1
1.4
.1
1.6

.7
2.8
3.8
12.9
1.9
2.9
1.2
1.2
.1
1.8

5.8
27.8
17.2
22.7
1.5
1.3
.3
2.5

1.5
4 .6
5.1
10.4
1.3
2.6
2 .4
2.7
.1
1.0

.9
2.1
4.1
9.9
1.3
2.7
2.7
3.1
.2
1.1

5.4
20.2
11.1
14.1
1.1
1.5
1.1
.2

.1

.1

1.9

18.6

21.0

1.8

15.7

17.2

6.7

.2

1.0
.6
7.5
.8
1.4
2.8
2 .4
.4
.3

1.1
.7
8.4
.8
1.5
3.2
2.7
.5
.4

.3

.5
1.9
7 .4
.1
2.7

.7
1.3
4.1
.2
.2

1.2
.2

1.4
.2

.5
1.8
7 .0
.1
2 .4
.3
2.4
( 2)
.7
.1
.3
.1
.1

( 2)

.3
2.3
.1
1.0

3.2
( 2)

.3
2.6

2 Less than 0.05 per cent.
N o t e .—This table was compiled by comparing rates as reported
by the sample banks th at had these types o f deposits outstanding
on Jan. 31, 1972, with the rates reported by the same banks

.2
1.0

.2

(2)

.8
.3
.3
.3

2.8
(2)
.3
.1
.1

.2

on Oct. 31, 1971. The table excludes banks that issued these types
of deposits on Oct. 31, but no longer had these types of deposits
outstanding on Jan. 31. Percentages may not add to totals because
o f rounding.

373




1.0

4 .2

CHANGES IN TIME AND SAVINGS DEPOSITS

Banks reducing ra te ...........
New m ost com m on
rate 1 (per cent)
3.50 o r less..............
3 .5 1 -4 .0 0
4 .0 1 -4 .5 0
4 .5 1 -5 .0 0
5 .0 1 -5 .2 5
5 .2 6 -5 .5 0
5 .5 1 -5 .7 5
5 .7 6 -6 .0 0
6 .0 1 -6 .2 5
6 .2 6 -6 .5 0
6 .5 1 -6 .7 5
6 .7 6 -7 .0 0
7 .0 1 -7 .5 0
7 .5 1 -8 .0 0
8 .0 1 -8 .5 0

NOTE TO TABLE 2:
N o t e . —The m ost com m on interest rate for each instrument refers
to the basic stated rate per annum (before compounding) in effect on
the survey date that was generating the largest dollar volume of de­
posit inflows. If the posted rates were unchanged during the 30-day
period just preceding the survey date, the rate reported as the most
common rate was the rate in effect on the largest dollar volume of
deposit inflows during that 3 0 day period. If the rate changed during
th at period, the rate reported was the rate prevailing on the survey
date on the largest dollar volume o f deposit inflows.

While rate ranges o f % or lA o f a percentage point are shown in
this and other tables, the m ost common rate reported by m ost banks
was the top rate in the range; for example, 4.00, 4.50, etc. O n negotia­
ble C D ’s in denominations of $100,000 and over, however, some large
banks have rates a t intervals o f Ys o f a percentage point. Some de­
posit categories exclude a small am ount o f deposits outstanding in
a relatively few banks that no longer issue these types o f deposits and
are not included in the number o f issuing banks.
Figures may not add to totals because o f rounding.

NOTES TO APPENDIX TABLES 1-6:
1 Less than $500,000.
2 Omitted to avoid individual bank disclosure.
N o t e .— D ata were compiled from inform ation reported by a
probability sample o f all insured commercial banks. The latter were
expanded to provide universe estimates.
Figures exclude banks th at reported no interest rate paid and that
held no deposits on the survey date, and they also exclude a few
banks th at had discontinued issuing these instruments but still had

374




some deposits outstanding on the survey date. Time deposits, open
account, exclude Christm as savings and other special accounts. D ollar
amounts may not add to totals because o f rounding.
In the headings o f these tables under “ M ost common rate paid
(per cent)” the rates shown are those being paid by m ost reporting
banks. However, for the relatively few banks that reported a rate in
between those shown, the bank was included in the next higher rate.

Changes in
Bank Lending Practices, 1971
Since late 1964, the Federal Reserve has
conducted quarterly surveys of changes in
bank lending practices among large com­
mercial banks to obtain information on
nonprice lending terms and on bankers’
appraisals of current and anticipated
demands for business loans. The results
of the four surveys in 1971— in February,
May, August, and November— are sum­
marized in this article.
Lower interest rates and increased
deposit and credit flows generally char­
acterized financial markets in the first
part of 1971. During the first quarter of
that year, the money stock increased at
a rate twice as fast as it had in the three
final months of 1970. Moreover, this
growth was coupled with a surge in time
and savings deposits at commercial banks.
As other short-term interest rates declined
during the quarter, the discount rate was
reduced xh of a percentage point, and the
prime rate was reduced by 1lA percentage
points.
In line with these reductions, most
bankers in the February 1971 survey re­
ported an easing in interest rate policies
as weakness in demand for loans persisted.
Since few bankers expected any signifi­
cant improvement in business loan demand
in the upcoming quarter, there was a
vigorous search for new borrowers, even
outside local service areas. Bankers also
sought to supplement the smaller growth
in business loans, with other types of
N o t e : — This article was prepared by Marilyn Barron
of the Division of Research and Statistics of the Board
of Governors.




credits, especially from single-family
mortgages and consumer instalment loans.
From March until m id-1971, however,
short-term interest rates rose sharply.
The prime rate fluctuated during this period
but at the end of the quarter was XA of a
percentage point below its level 3 months
earlier.
During the second quarter business
loans still showed only sluggish growth.
This reflected, in part, the economy’s
fragile recovery and, in part, heavy use
by businesses of bonds and stocks to
raise funds. Firms seeking to repay
short-term debt and restore liquidity
flooded the capital market with record
amounts of new issues during this
period. Meanwhile, the comfortable li­
quidity position afforded most banks
by a sustained influx of deposits pro­
moted more flexibility in lending policies.
Bankers’ interest in all types of loans,
as indicated in the May 1971 survey, was
strong, although the rate advantage to
banks on consumer and term loans was
particularly attractive. Because the prime
rate seesawed in the interval between the
February and May surveys, respondents
reported mixed reactions regarding interest
rate policies. Similarly, there was no con­
sensus about the strength of future loan
demands.
At midyear, however, inflationary pres­
sures were still strong, while unemploy­
ment remained a chronic problem. On the
international front, a monetary crisis
seemed imminent. The August survey was
taken against a backdrop of uncertainties
375

376

FEDERAL RESERVE BULLETIN □ APRIL 1972

regarding the strength of the current eco­
nomic recovery, the continuation of in­
flation, and the imposition of tighter mon­
etary conditions. Bankers’ responses re­
flected a “ wait"and see” attitude. There
were few dramatic changes in lending
terms, although interest rates had risen
at most banks and compensating balance
requirements had stiffened somewhat.
Just 2 days after the August 1971 sur­
vey, the President announced a new eco­
nomic policy that froze wages and prices

for 90 days. During the 90-day period the
general business outlook, along with
consumer spending, showed some im­
provement.
By the time of the November survey,
however, business loan demand, which
had spurted in mid-August, in part due
to speculation over possible foreign ex­
change realignments, had weakened. Bank
officers reported continued interest in ex­
panding consumer instalment loans and
real estate mortgages— both of which

QUARTERLY SURVEY— FEBRUARY 1971
CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1971,
COMPARED WITH POLICY 3 MONTHS EARLIER
Number of banks; figures in parentheses indicate percentage distribution of total banks reporting
Total
Strength of demand for commercial and in­
dustrial loans: 1
C ompared with 3 m onths earlier.................
Anticipated in next 3 m onths.......................

125
125

(100.0)
(100.0)

Total
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged..............................
Compensating o r supporting balances.
Standards o f creditw orthiness...............
M aturity o f term lo a n s...........................

124
124
124
124

Practice concerning review o f credit lines
or loan applications:
Established custom ers.............................
New custom ers..........................................
Local service area custom ers.................
N onlocal service area custom ers..........

125
125
125
125

( 100. 0)

Factors relating to applicant:2
Value as depositor o r source o f collat­
eral business...........................................
Intended use o f the lo an .........................

124
125

(100.0)
(100.0)

Loans to independent finance companies:3
Term s and conditions:
Interest rate charged................................
Compensating o r supporting b alances.
Enforcement o f balance requirements .
Establishing new o r larger credit lines.

124
124
124
124

( .8)
( 1 . 6)

M uch firmer
policy

Essentially
unchanged

M oderately
weaker

12
21

31
62

72
39

(9.6)
(16.8)

M oderately
firmer policy

( 100 . 0 )

( 100 . 0 )
( 100 . 0 )

( 100. 0)

( . 8)

125
124

(36.3)

( . 8)

2

(1.6)

49
64
52
46

(39.2)
(51.2)
(41.6)
(36.8)

7
10
6
3

(5.6)
(8.0)
(4.8)
(2.4)

( .8)

68

(2.4)

48

( . 8)

66

(3.2)

71

(54.4)
(38.4)
(52.8)
(56.8)

(4.8)
(2.4)

94
89

(75.9)
(71.2)

23
31

(18.5)
(24.8)

1
2

(.8 )
(1.6)

57
117
109
70

(45.9)
(94.4)
(87.9)
(56.5)

41
6
10
49

(33.1)
(4.8)
(8.1)
(39.5)

26

(21.0)

( . 8)

( 100. 0)

( . 8)

M oderately
less willing
( . 8)

( 100 . 0 )
( 100 . 0 )

( .8)

120

122

( 100. 0)

( . 8)

( 100 . 0 )

( . 8)

125

(100.0)

( . 8)

122

( 100. 0)

M uch
easier policy

45

(4.0)

121

M oderately
easier policy

(49.2)
(25.0)
(4.8)
(24.2)

( 100. 0 )

Considerably
less willing

(7.2)
(0 . 8)

61
31
6
30

( 100. 0)
( 1. 6)

Essentially
unchanged

(57.6)
(31.2)

(14.5)
(73.4)
(89.6)
(73.4)

(4.8)

( 100 . 0 )
( 100 . 0 )

(24.8)
(49.6)

M uch
weaker

18
91
111
91

( 1. 6)
( .8)

1 After allowance for bank’s usual seasonal variation.
2 For these factors, firmer means the factors were considered to be
more im portant in making decisions for approving credit requests,
and easier means they were considered to be less im portant.




M oderately
stronger

( 100. 0)
( 100 . 0 )
( 100 . 0 )

Total
Willingness to make other types of loans:
Term loans to businesses........................
Consumer instalment lo a n s....................
Single-family mortgage loans.................
Multifamily mortgage loans...................
All other mortgage lo a n s........................
Participation loans with correspondent
b an k s.......................................................
Loans to brokers......................................

M uch
stronger

(1. 6)

Essentially
unchanged

Moderately
more willing

Considerably
more willing

55
57
52
89
82

(44.0)
(45.9)
(43.0)
(74.2)
(67.2)

66
56
53
27
35

(52.8)
(45.2)
(43.8)
(22.5)
(28.7)

3
11
15
3
4

(2.4)
(8.9)
(12.4)
(2.5)
(3.3)

74
88

(59.2)
(72.1)

47
31

(37.6)
(25.4)

3

(2.4)
(2.5)

3 “ Independent,” or “ noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale o f the parent company’s products.

377

CHANGES IN BANK LENDING PRACTICES, 1971

had been major sources of strength
throughout the year. To encourage busi­
ness borrowing, the prime rate had been
reduced as other short-term interest rates
had receded from their August highs.
Furthermore, some banks adopted a more
flexible policy in setting rates on busi­
ness loans; they instituted what is now
referred to as a floating prime rate, one
that varies with open market rates such
as the commercial paper rate.
Although bankers had an ample sup­

ply of lendable funds and were faced
with limited demands for business loans,
they repeatedly stressed in the November
survey in particular, that they were at­
tempting to maintain and improve credit
standards. The vivid memories of the com­
mercial paper crisis and adverse loss ex­
periences of the previous year were
still quite evident. Thus, while banks
sought new customers aggressively, they
placed a greater emphasis on loan qual­
ity.
□

QUARTERLY SURVEY— MAY 1971
CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1971,
COMPARED WITH POLICY 3 MONTHS EARLIER
Number of banks; figures in parentheses indicate percentage distribution of total banks reporting
Total
Strength of demand for commercial and in­
dustrial loans: 1
Compared with 3 m onths earlier.................
Anticipated in next 3 m onths.......................

125
125

( 100 . 0 )

( 100. 0)

Total
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged..............................
Compensating o r supporting b alances.
Standards o f creditw orthiness...............
M aturity o f term lo a n s...........................
Practice concerning review o f credit lines
or loan applications:
Established custom ers.............................
New custom ers..........................................
Local service area custom ers.................
N onlocal service area custom ers...........
Factors relating to applicant:2
Value as depositor o r source o f collat­
eral business...........................................
Intended use o f the lo a n .........................
Loans to independent finance companies:3
Term s and conditions:
Interest rate ch arg ed................................
Compensating or supporting balances. .
Enforcement o f balance requirements .
Establishing new or larger credit lines.

124
125
125
125

1

M uch firmer
policy

( 100. 0)
( 100. 0)

M oderately
stronger

Essentially
unchanged

M oderately
weaker

49
75

57
49

18

(14.4)

1

( . 8)

(39.2)
(60.0)

M oderately
firmer policy

53
9
9

( 100. 0)
1

( . 8)

6

1

( . 8)

4
7
3

(42.7)
(7.2)
(7.2)
(4.8)

(45.6)
(39.2)

Essentially
unchanged

M oderately
easier policy

24
5

(19.4)
(4.0)

11

(.8)
(8 . 8 )

44

(35.5)

111

(8 8 . 8 )

115
107

(92.0)
(85.6)

(3.2)
(5.«)
(2.4)
(9.8)

108
91
107
94

(86.4)
(72.8)
(87.1)
(77.1)

(8 .

125
125
123

( 100 . 0)
( 100 . 0 )
( 100 . 0 )

122

( 100. 0)

124
125

( 100. 0)
( 100. 0)

10

3

(2.4)

1)

109
113

(87.9)
(90.4)

125
125
125
125

( 100 . 0 )

22
5

(17.6)
(4.0)

88

119

11

(8 . 8 )

112

(6.4)

79

(70.4)
(95.2)
(89.6)
(63.2)

125
124

122

( 100. 0)
( 100. 0)
( 100. 0)

( 100. 0)
( 100. 0)

123
124

( 100. 0)

122

12

( 1 . 6)

Considerably
less willing

( 100. 0)
( 100 . 0 )
( 100 . 0 )

122

i .......08)

1

1
1

( 100. 0)

1 After allowance for bank’s usual seasonal variation.
2 For these factors, firmer means the factors were considered to be
more im portant in making decisions for approving credit requests,
and easier means they were considered to be less im portant.




( - 8)

( 100 . 0 )

Total
Willingness to make other types of loans:
Term loans to businesses............................
Consumer instalment lo a n s........................
Single-family mortgage loans.....................
Multifamily mortgage loans.......................
All other mortgage lo a n s............................
Participation loans with correspondent
b an k s...........................................................
Loans to bro k ers..........................................

M uch
stronger

( . 8)
( . 8)
( . 8)

Moderately
less willing

Essentially
unchanged

1

10

(8 . 0 )

24
10
13

(19.2)
(8 .

1)

(10.7)

M uch
weaker

M uch
easier policy

3

(2.4)

3
2
3
2

(2.4)
(1.6)
(2.4)
(1.6)

(4.0)
(7.2)

14

( 11. 2)

2

( . 8)
( 1 . 6)

35

(28.0)

1

M oderately
m ore willing

4
1
2
3
4

(3.2)
(.8)
(1.6)
(2.5)
(3.3)

88
79
71
104
91

(70.4)
(63.7)
(58.3)
(85.2)
(73.9)

33
35
42
14
27

(26.4)
(28.2)
(34.4)
(11.5)
(22.0)

4
2

(3.2)
(1.6)

99
110

(79.9)
(90.2)

19
8

(15.3)
(6.6)

( . 8)

‘(.‘8)'
Considerably
more willing

(7.3)
(4.9)

( 1 . 6)
( 1 . 6)

3 “ Independent,” or “ noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale o f the parent company’s products.

FEDERAL RESERVE BULLETIN □ APRIL 1972

378

QUARTERLY SURVEY— AUGUST 1971
CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 13, 1971,
COMPARED WITH POLICY 3 MONTHS EARLIER
Number of banks: figures in parentheses indicate percentage distribution of total banks reporting
Total
Strength of demand for commercial and in­
dustrial loans: 1
C ompared with 3 m onths earlier.................
Anticipated in next 3 m onths.......................

125
125

(100.0)
(100.0)

Total
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged.............................. .
Compensating or supporting balances.
Standards o f creditw orthiness...............
M aturity o f term lo a n s ...........................

125
125
125
125

Practice concerning review o f credit lines
or loan applications:
Established custom ers..............................
New custom ers..........................................
Local service area custom ers.................
N onlocal service area custom ers...........

125
125
124
123

Factors relating to applicant:2
Value as depositor o r source o f collat­
eral business..........................................
Intended use o f the lo a n .........................
Loans to independent finance companies:3
Term s and conditions:
Interest rate ch arged................................
Compensating or supporting balances.
Enforcement o f balance requirements .
Establishing new or larger credit lines.

( . 8)
( . 8)

M uch firmer
policy

( 100 . 0 )

(2.4)

( 100. 0)
( 100. 0)
( 100. 0)

(i-6)

(30.4)
(52.0)

M oderately
firmer policy

79
28
12

(63.2)
(22.4)
(9.6)
(6.4)

(4.8)
(9.6)
(4.8)
(11.4)

Moderately
weaker

69
58

16

(55.2)
(46.4)

Essentially
unchanged

( . 8)
( 1 . 6)

110

(8 8 . 8)
(88 . 0 )

(5.6)

113
99
112
100

(90.4)
(79.2)
(90.4)
(81.3)

(79.9)

124
125

(100.0)
(100.0)

1

( . 8)

20

(16.1)

99

10

(8 . 0 )

111

(8 8 . 8)

125
125
125
125

( 100 . 0 )
( 100 . 0 )

( 1 . 6)

( 100. 0)
( 100. 0 )

( . 8)

39
11
15
18

(31.2)
(8.8)
(12.0)
(14.4)

83
112
107
89

(66.4)
(89.6)
(85.6)
(71.2)

124
123
122

( 100 . 0 )
( 100 . 0 )
( 100 . 0 )

121
122

( 100. 0)
( 100 . 0 )

122
121

( 100 . 0 )
( 100 . 0 )

Considerably
less willing

( . 8)

M oderately
less willing

M oderately
easier policy

Essentially
unchanged

6
12
6
7

M uch
weaker

1

( . 8)

( . 8)

(33.6)
(76.0)

( 1. 6)

(2.4)

( 12 . 8)

42
95

2

( . 8)

1

111

( 100 . 0 )

( 1. 6)

( 100. 0)

1 After allowance for bank’s usual seasonal variation.
2 For these factors, firmer means the factors were considered to be
more im portant in making decisions for approving credit requests,
and easier means they were considered to be less im portant.




38
65

Essentially
unchanged

6
12
6
14

( 100 . 0 )
( 100 . 0 )

Total
Willingness to make other types of loans:
Term loans to businesses............................
Consumer instalment lo an s........................
Single-family mortgage loans.....................
Multifamily mortgage loans.......................
All other mortgage lo a n s............................
Participation loans with correspondent
b an k s...........................................................
Loans to brokers..........................................

Moderately
stronger

M uch
stronger

M uch
easier policy

(4.8)
(9.6)
(4.8)
(5.7)

(3.2)
(3.2)

1
1
2
15

(.8)
(.8)
(1.6)
(12.0)

M oderately
m ore willing

8
2
8
6
9

(6.5)
(1.6)
(6.6)
(5.0)
(7.4)

99
91
91
106
103

(79.8)
(74.0)
(74.6)
(87.6)
(84.4)

17
26
22
7
9

(13.7)
(21.1)
(18.0)
(5.8)
(7.4)

5
6

(4.1)
(5.0)

107
106

(87.7)
(87.6)

10
9

(8.2)
(7.4)

Considerably
m ore willing

(3.3)
( . 8)
( .8)

( . 8)

3 “ Independent,” or “ noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale o f the parent company’s products.

CHANGES IN BANK LENDING PRACTICES, 1971

379

QUARTERLY SURVEY— NOVEMBER 1971
CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1971,
COMPARED WITH POLICY 3 MONTHS EARLIER
Number of banks; figures in parentheses indicate percentage distribution of total banks reporting
Total

M uch
stronger

M oderately
stronger

Essentially
unchanged

Moderately
weaker

23
37

52
75

48

M uch
weaker

S tren g th of dem and for com m ercial and in­
d ustrial lo an s: 1

Com pared with 3 m onths earlier.................
Anticipated in next 3 m onths.......................

125
124

(100.0)
(100.0)

Total

( . 8)

( . 8)
M uch firmer
policy

(18.4)
(29.8)

M oderately
firmer

(41.6)
(60.5)

Essentially
unchanged

11

( . 8)

(38.4)
(8.9)

Moderately
easier

Much
easier

Loans to nonfinancial businesses:

Terms and conditions:
Interest rates charged ................................
Compensating o r supporting balances. .
Standards o f creditw orthiness.................
M aturity o f term lo a n s..............................

125
125
125
124

( 100. 0)
( 100. 0 )
( 100. 0 )
( 100. 0)

Practice concerning review o f credit lines
o r loan applications:
Established custom ers...............................
New custom ers............................................
Local service area custom ers...................
Nonlocal service area custom ers.............

125
124
124
123

( 100. 0)
( 100 . 0 )
( 100. 0)

Factors relating to applicant:2
Value as depositor o r source o f collat­
eral business..............................
Intended use o f the lo an .............

123
125

( 100. 0)

125
125
125
125

( 100 . 0 )

Loans to independent finance companies
Term s and conditions:
Interest rate charged ........................
Compensating or supporting balances. .
Enforcement o f balance requirem ents. .
Establishing new or larger credit lines. .

(1.6)
(5.6)
(1.6)

39
107
114
108

(31.2)
(85.6)
(91.2)
(87.1)

81
16
4
14

(64.8)
(12.8)
(3.2)
(11.3)

(6.5)

(84.0)
(71.7)
(83.9)
(78.1)

20
27
20
19

(16.0)
(21.8)
(16.1)
(15.4)

( 100. 0)

( 100. 0)

( . 8)

(5.7)

105
89
104
96

( . 8)
( . 8)

(5.7)
(2.4)

102
116

(82.9)
(92.8)

13
5

(10.6)
(4.0)

74
119

(59.2)
(95.2)
(96.0)
(76.8)

47
4
2
25

(37.6)
(3.2)

( . 8)

( . 8)
( 1. 6 )
(2.4)
(2.4)

( 100. 0)
( 100 . 0 )
( 100 . 0 )

Total

Considerably
less willing

Moderately
less willing

120
96

Essentially
unchanged

(4.0)

(2.4)

( 1. 6)

(2 0 . 0 )

Moderately
more wiling

Considerably
m ore willing

W illingness to m ake other types of lo a n s:

Term loans to businesses.............................
Consumer instalment lo an s........................
Single-family mortgage loans.....................
Multifamily mortgage loans.......................
All other mortgage lo a n s............................
Participation loans with correspondent
b a n k s...........................................................
Loans to bro k ers...........................................

125
124
122
121

123
125
123

( 100 . 0 )
( 100 . 0 )
( 100. 0)

( 100. 0)
( 100 . 0)
( 100. 0)

( 100. 0)

1 After allowance for bank’s usual seasonal variation.
2 For these factors, firmer means the factors were considered to be
more im portant in making decisions for approving credit requests,
and easier means they were considered to be less important.




( 1 . 6)

( . 8)

(2.4)
( . 8)
(3.3)
(4.1)
(2.4)

100
86
88
110
104

(80.0)
(69.4)
(72.2)
(91.0)
(84.6)

22
33
27
5
16

(17.6)
(26.6)

(3.2)

( 2 2 . 1)

( . 8)

( 1. 6 )

104

(83.2)
(89.4)

19

(15.2)
(9.8)

110

12

(4.1)
(13.0)
( . 8)

3 “ Independent,” or “ noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale o f the parent company’s products.

Statement to Congress
Statement of J. L. Robertson, Vice Chair­
man, Board of Governors o f the Federal
Reserve System, before the Subcommittee
on Consumer Affairs of the Committee on
Banking and Currency, House of Repre­
sentatives, on the Truth in Lending A ct
and Federal Reserve Regulation Z,
March 22, 1972.
Madam Chairman, it is a pleasure to
appear before the Subcommittee on Con­
sumer Affairs. I have with me Frederic
Solomon, Director of our Division of
Supervision and Regulation, Griffith L.
Garwood, Chief of the Truth in Lending
Section, and Jerauld C. Kluckman,
Accountant-Analyst with that section.
Today I intend to discuss four major
topics relating to Truth in Lending. These
can be identified as the Board’s adminis­
trative experience, creditor compliance,
recommendations for legislative changes,
and areas for further study.
ADMINISTRATIVE EXPERIENCE

While the Act delegates rule-making
authority to implement its provisions
solely to the Board of Governors of the
Federal Reserve System, actual enforce­
ment of these rules (Regulation Z) is dele­
gated to nine separate Federal agencies,
including the Board. For the most part,
Federal agencies with general supervisory
authority over a particular group of
creditors were also given Truth in Lending
enforcement responsibility over those
creditors. Enforcement for all remaining
creditors, except in those States that have
an exemption from the Act, is the respon­
sibility of the Federal Trade Commission.
380



While some doubt was expressed be­
fore the Act was passed whether this multiple-agency structure would be workable,
our experience to date has been favorable.
We believe Truth in Lending is being
enforced evenhandedly and vigorously by
all of the enforcement agencies in con­
formance with Regulation Z and the
Board’s interpretations of it. The pre­
dicted interagency conflicts in interpreting
the law, with corresponding confusion
and inequitable enforcement, have simply
not materialized. This has been due in
large part to the cooperative attitude of
the various agencies involved. We are
anxious to acknowledge the considerable
contribution of these agencies to the
general success of the administration of
Regulation Z, which has extended beyond
their enforcement efforts with respect to
their particular class of creditors. This is
particularly true of the Federal Trade
Commission, which has had the task of
carrying the bulk of the enforcement
responsibility under a regulation drafted
and administered by another agency.
With this as background I would like
to summarize what the Board has done
to administer its functions under the Act
since I appeared before this subcommittee
on March 6 , 1969. At that time, you may
recall, the final version of Regulation Z
had been approved by the Board and
published, but the effective date, July 1,
1969, still lay ahead. Since that time,
there have been necessary adjustments,
interpretations, and explanations of the
regulation to maintain it as a workable
and useful tool in implementing the Truth
in Lending Act.

The Board has found it necessary to
amend Regulation Z 11 times. In addi­
tion, the Board has issued 49 formal in­
terpretations of Regulation Z that are
intended to clarify or further explain cer­
tain provisions of the regulation. These
amendments and interpretations (which
are listed in Appendix A)1 have been re­
quired from time to time to solve specific
problems that arose as we attempted to
apply the concept of Truth in Lending to
the complex and changing pattern of
consumer credit.
Amendments to Regulation Z. At an early
date, the Board became aware that, with­
out some adjustments in the regulatory
requirements, the application of Truth in
Lending to agricultural credit was overly
burdensome to creditors and of little or
no real benefit to agricultural consumers.
Consequently, it rewrote the section of
Regulation Z (§ 226.8(0)) dealing with
discounts for prompt payment, modified
the rescission requirements as they applied
to agricultural credit (§ 226.9(c) and (g)),
and added a section (§ 226.8(p)) to cover
credit with indefinite advances and pay­
ments, common in agricultural credit
transactions. These amendments were
accompanied by Board interpretations
(§ 226.301 and § 226.812 of Title 12,
Code of Federal Regulations) that also
sought to clarify and improve the applica­
tion of Truth in Lending to the unique
characteristics of agricultural credit. While
these adjustments have gone a long way
toward solving the agricultural credit
problem, the Board believes that addi­
tional relief is needed, as I will discuss
later.
It also became evident that the regula­
tion’s prior disclosure requirements in
open-end credit (§ 226.7(e)) could impede
1Copies of appendices referred to herein are available
upon request to Publications Services, Division of Ad­
ministrative Services, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.




changes by creditors in their open-end
credit plans that were beneficial to cus­
tomers. In response to this problem, the
Board adopted relaxing amendments.
Likewise, it became evident that the
requirements regarding advertising mort­
gage credit, as they applied to so-called
“ Section 235 FHA programs” (designed
to provide home ownership for lowerincome families), were actually inhibiting
the informative advertising of properties
to which this financial assistance relates.
The Board added a section (§ 226.10(e))
to the regulation to resolve this problem.
Similar adjustments were made with
respect to the application of the right of
rescission to the sale of vacant lots ex­
pected to be used as the customer’s prin­
cipal residence (§ 226.9(b)), the effect of
the new Federal holiday schedule on the
rescission period (§ 226.9(a)), the effect
of leap year on preprinted disclosures
(§226.6(1)), and the continued applicabili­
ty of the Federal civil liability provisions
after the issuance of a State exemption
(§ 226.12).
Interpretations. A number of Board in­
terpretations of Regulation Z have been
necessitated by the existence of specialized
credit practices to which the regulation
had to be matched— for example, certain
layaway plans, vendor’s single-interest in­
surance, seller’s points, assumptions of
existing loans, variable-rate obligations,
renewals of notes, multiple-advance loans,
and demand loans.
The point I want to make is that the
regulation, to a certain extent, is a fluid
document that the Board has found neces­
sary to adjust from time to time in the
light of specialized creditor practices of
which we became aware and in response
to new developments in the methods of
extending credit. Where requirements have
been overly burdensome or where dis­
closures have proven misleading or con­
381

382

FEDERAL RESERVE BULLETIN □ APRIL 1972

fusing to customers, the Board has at­
tempted to adjust the regulation’s re­
quirements to make them as workable as
possible. We have been assisted in this
task by the fine help of our publicspirited Advisory Committee on Truth
in Lending, composed of 20 individuals
whom we consider to be knowledgeable,
nationwide representatives of the public—
both creditors and consumers. We have
relied heavily on the members of the com­
mittee in coping with difficult problems,
and their advice has been sound and help­
ful. Appendix B lists the committee mem­
bers, both former and current.
Staff letters. In addition to preparing
amendments and interpretations of the
regulation for the Board, our staff has
responded to an enormous volume of
written and telephone inquiries. We have
not kept count of all of the correspondence
we have written relating to Truth in
Lending, but to give you some idea of the
volume, we responded to approximately
1,000 letter inquiries during 1971. Many
of the staff’s letters have been given wide
distribution by commercial publishers.
In an effort to maintain uniformity of
view among the various enforcement
agencies, indexed copies of our staff
letters treating new or unusual subjects
have been provided to the 12 Federal
Reserve Banks, the eight other Federal
enforcement agencies, and the four States
that have received an exemption from
the Federal Act on the basis of substantial­
ly similar State law.
Education. We have devoted consider­
able effort to educational programs for
both consumers and creditors.
Our first creditor-oriented educational
tool was the pamphlet, What You Ought
to Know About Truth in Lending. This
pamphlet contains the text of the Act and
the regulation, questions and answers
about Truth in Lending, and sample dis­

closure forms. Nearly one and one-half
million of these pamphlets have been
distributed to creditors and other interested
persons. A filmstrip designed to explain
Truth in Lending from a creditor’s point
of view was prepared and distributed.
These filmstrips (there are 650 of them)
can be purchased or borrowed free of
charge. The staffs of the Board, the
Federal Reserve Banks, and the other
enforcement agencies have participated
in numerous meetings and seminars re­
garding Truth in Lending. Much of the
creditor education program took place
during the initial implementation of the
regulation, when the thirst for information
on how to comply was almost insatiable.
The demand for creditor education sub­
sided as time passed and creditors gained
more experience under the regulation.
I should not conclude my discussion
of the creditor educational program with­
out mentioning the admirable work of
many trade associations in providing in­
formation to their members.
At the outset, the Board emphasized
information for creditors, since the suc­
cess of Truth in Lending depends upon
their understanding of the requirements.
However, if the purposes of the Act are
to bfe fully achieved, the consumer must
be able to utilize effectively the informa­
tion provided to him. Consequently, the
Board has developed several consumeroriented educational tools.
The first is a filmstrip that explains
Truth in Lending from the consumer
point of view. Over 1,200 filmstrips have
been distributed. They may be purchased
or borrowed. We are pleased to note that
many of the users have been school
systems.
The second major consumer tool is a
leaflet entitled What Truth in Lending
M eans to You. This leaflet explains in
simple terms the basic facts about Truth




STATEMENT TO CONGRESS

in Lending. Many methods and sources
have been used to distribute, free, more
than two and one-half million copies of
this leaflet.
The Board’s most recent consumeroriented educational release also looks
as if it will be a best seller. This is a
Spanish translation of the leaflet, What
Truth in Lending Means to You.
State exemptions. Pursuant to the pro­
visions of the statute (§ 123), the Board
has granted exemptions from the disclosure
and rescission provisions of the Federal
Act to the States of Connecticut, Maine,
Massachusetts, and Oklahoma. The ex­
emptions granted generally pertain to all
consumer credit transactions within the
exempt State, except for those transac­
tions in which a federally chartered in­
stitution is a creditor. An exemption can
be granted to any State that has law sub­
stantially similar to the Federal Truth in
Lending Act (including implementing
regulations) and adequate provision for
enforcement.
The Board maintains close liaison with
each exempt State. We believe that each
of them is conscientiously implementing
its own Truth in Lending law in a manner
consistent with the Federal Act.
Preliminary applications for exemptions
have also been received from the States
of Kansas and Wyoming. These are
currently being reviewed to assure their
completeness prior to publishing official
notice of their receipt in the Federal
Register.
Litigation. In its annual report on
Truth in Lending for 1971, the Board
indicated that it was aware of 71 civil
actions that have been brought under
§ 130 of the Act. It is likely that additional
suits have been instituted. I will not dis­
cuss these suits, except to mention that
they cover the waterfront—disclosures
under open-end credit as well as other



383

credit plans, the right of rescission, and
even advertising.
COMPLIANCE

With respect to creditor compliance with
the Truth in Lending Act, let me say
that the Federal agencies with general
supervisory authority over their creditor
groups, such as the Board, the Comptroller
of the Currency, the Federal Home Loan
Bank Board, and the National Credit Union
Administration, seem to have experienced
no significant problems in the enforcement
of Regulation Z. These agencies inform
us that the level of compliance is high,
and that the errors that are found usually
result from misunderstanding or clerical
error, rather than an attempt to evade the
Act. For the most part, compliance is
determined by these agencies during the
regular periodic examinations of the in­
stitutions.
The Federal Trade Commission has
conducted two surveys in an attempt to
determine the extent of compliance by
creditors under its jurisdiction, such as
finance companies, automobile dealers,
and jewelry stores— creditors that are not
regularly supervised by a Federal agency.
The results of these two surveys were
reported by the Commission in an April
1971 release entitled “ Federal Trade
Commission Report on Surveys of Creditor
Compliance with the Truth in Lending
A ct.” The release revealed that 86 per
cent of all creditors surveyed were using
contracts that were in either total or sub­
stantial compliance. Also, a vast majority
of the larger creditors— those whose sales
volumes are $ 1 million or more— were in
total or substantial compliance. The results
indicate that not only are most creditors
under the Commission’s jurisdiction in
total or substantial compliance, but also
most disclosures made to consumers were
in total or substantial compliance. These

384

FEDERAL RESERVE BULLETIN □ APRIL 1972

surveys identified for the Commission the
types of creditors and the geographic
areas to which its enforcement efforts
should be principally directed. The re­
sults were of assistance to the Commis­
sion in planning its enforcement pro­
gram.
It also appears that substantial com­
pliance by creditors under their jurisdic­
tion is being achieved by each of the four
exempt States.
Based upon the reports of all enforce­
ment agencies, including the exempt
States, it is the Board’s belief that sub­
stantial compliance with Truth in Lending
is being achieved.

$13 million potential liability of the
bank in the R atn er case led many creditors
to fear that similar suits filed against them
could seriously threaten their solvency.
The court ultimately held in R atn er that
a class action was not sustainable, but
other class action cases relating to al­
leged Truth in Lending violations are
still pending.
I believe that this almost unlimited
class action exposure may be detrimental
to consumer interests and, in fact, may
be an impediment to effective private
enforcement of Truth in Lending through
class actions. By this I mean that the
courts, which are given a good deal of
discretion in determining whether or not
to allow class actions, may be inclined to
disallow them simply because of the seem ­
ingly unreasonable magnitude of the
class action recovery. Consequently I
believe it is important to suitably limit
this exposure while at the same time
maintaining class actions as a viable
remedy for violations of the Act and
Regulation Z. Others more qualified
than I may suggest specific solutions to
the problem, but I would hope class
actions would not be prohibited or unduly
limited because they provide the most
effective sanction by which compliance
is achieved.
At least one step in solving this problem
may be the insertion of a “ good faith”
provision in the statute. The A ct’s civil
liability section does not necessarily pre­
clude liability even when a creditor has
acted in “ good faith” reliance on Regula­
tion Z or the Board’s interpretations there­
of. The Board has recommended inserting
in the Act a “ good faith” provision,
such as that in the Securities Exchange
Act of 1934, that would apply to both
the Board’s Regulation Z and its inter­
pretations of it. The following wording
was furnished to the Senate subcommittee

RECOMMENDATIONS FOR LEGISLATIVE
CHANGES

The Board’s most recent recommenda­
tions for legislative changes have been
presented as part of its annual report on
Truth in Lending for 1971. Since then
the Chairman of the Subcommittee on
Financial Institutions of the Senate Com­
mittee on Banking, Housing and Urban
Affairs has asked the Board to provide
drafts of legislation to implement the
recommendations, and the Board has done
so by letter dated February 28, 1972
(Appendix C).
Civil liability. One area in which legisla­
tive changes are needed relates to civil
liability under the Act. Many creditors
have been extremely concerned over
their possible exposure to class action
suits and the possible ruinous liability
that might result. Their concern was
prompted largely by R atn er v. Chem ical
Bank N ew York Trust Com pany, a case
in which a U .S. District Court held the
bank in violation of the Act for failure to
disclose the nominal annual percentage
rate on open-end-credit billing statements
that showed an outstanding balance but no
finance charge yet incurred. The reported




STATEMENT TO CONGRESS

for insertion in the civil liability pro­
visions:
No provision of this section imposing any
liability shall apply to any act done or omitted
in good faith in conformity with any rule,
regulation or interpretation thereof by the
Board, notwithstanding that such rule, regula­
tion or interpretation may, after such act or
omission, be amended or rescinded or be
determined by judicial or other authority to
be invalid for any reason.

Another problem relates to the minimum
recovery provision of the statute. Section
130 of the Act makes a creditor liable for
a minimum of $100 for failure to make
proper disclosure “ in connection with
any consumer credit transaction.” There
is some uncertainty as to the meaning
of the word “ transaction” when apply­
ing § 130 to multiple errors— for example,
to an error on a periodic statement, which
is sent repeatedly in connection with an
open-end account. It might be contended
that each separate purchase for which a
credit card is used constitutes a separate
“ transaction” for purposes of § 130, or
that each periodic statement is a separate
transaction. In our view, the opening and
use of the account should be considered
as a single transaction. We believe that
Congress should clarify the meaning of
the very important term “ transaction”
and have suggested the following:
The multiple failure to disclose to any per­
son any information required under this
chapter to be disclosed in connection with a
single account under an open end consumer
credit plan, other single consumer credit sale,
consumer loan or other extension of consumer
credit, shall entitle the person to a single
recovery under this section.

The new provision is designed to make
certain that although there may have
been multiple failures to disclose re­
quired information on an account or in
connection with a single credit transac­
tion, for example, where an omission
occurs in a series of periodic billing
statements, the minimum recovery to a



385

consumer would be a single $100, not
a multiple of that amount.
Rescission. The right of rescission is
another area that the Board believes
merits legislative changes.
Section 125 of the Act, implemented
by. Regulation Z (§ 226.9), provides that
in certain credit transactions in which a
security interest in the customer’s resi­
dence is involved, the customer has
three business days in which to rescind
the transaction. The creditor must notify
the customer of this right and provide a
form that may be used to exercise that
right. The law does not limit the period
for which the right continues where the
creditor has failed to notify the customer
of his right— the 3-day period never begins
to run. A lso, even though the required
notice is given, there is a question as to
whether the rescission period also con­
tinues indefinitely if other required dis­
closures have not been made. The titles
to many residential properties might be­
come clouded by uncertainty arising from
these rights of rescission. The Board
recommends that Congress amend the
Act to provide a 3-year limit on the time
the right of rescission may run, where
the creditor has failed to give proper
disclosures.
An additional recommendation results
from two legal actions that have been
brought against the Board by home im­
provement contractors alleging that the
Board exceeded its authority by provid­
ing in Regulation Z (§ 2 2 6 .2(z) and
§ 226.9(a)) that the right of rescission
applies to consumer credit contracts
secured by a m echanic’s or materialman’s
lien on the customer’s home, even though
no mortgage or deed of trust is executed
by the customer. In one case, summary
judgment was granted in favor of the
Board. In the other, the court held that the
provision (§ 226.9(a)) was null and void

386

FEDERAL RESERVE BULLETIN □ APRIL 1972

as it relates to liens that may come into
existence by operation of law. Appeals
have been filed in both cases.
The right of rescission was designed to
allow home owners a ‘ ‘cooling-off’ ’ period
before being irrevocably bound by credit
transactions involving security interests
in their homes, and to reduce the danger
of homeowners being overreached by
unscrupulous home improvement contrac­
tors. The Board believes that accomplish­
ment of this goal necessitates the coverage
under the right of rescission of all con­
sumer credit transactions in which a cus­
tomer’s home may be lost through fore­
closure, whether by mortgage, deed of
trust, or other lien rights. The Board
recommended that Congress amend the
Act to remove any doubt as to the cover­
age of these transactions under Section
125 by adding wording that specifically
includes security interests that arise by
operation of law under that section.
More-than-four-instalments rule.
Our
annual report also recommends that
Congress expressly declare that the Act
covers transactions involving more than
four instalments without an identifiable
finance charge. By providing in Regula­
tion Z that Truth in Lending encompasses
transactions payable in more than four
instalments, the Board gave notice to
vendors who may have considered con­
cealing finance charges in the price of
goods to evade the A ct’s requirements
(as well as the so-called “ no-charge-forcredit” sellers already operating in low
income markets) that the Board con­
sidered them subject to the A ct’s require­
ments. The Board did this to insure that
they would make certain important dis­
closures required by Truth in Lending,
even when no finance charge or annual
percentage rate was disclosed.
The Board’s more-than-four-instalments rule was based on the economic

fact that instalment contracts of more
than four instalments typically include
some component to compensate the
creditor for the cost involved in allowing
deferred payment, even though that cost
may not be separately identified as a
finance charge. The Board believes the
rule is both within the scope of its author­
ity and necessary to prevent evasion of
the Act.
However, in M ourning v. Fam ily Pub­
lications S ervice, In c ., the court declared
the rule invalid, although the rule has
been upheld in other courts. Should the
adverse decision be allowed to stand,
many creditors would not only escape
the requirement of making important
Truth in Lending disclosures prior to con­
summation of their contracts, such as the
number, amount, and due dates of pay­
ments and the total amount of the con­
sumer’s obligation, but would also be
free of the A ct’s prohibitions against
“ bait” credit advertising. Since creditors
would not be subject to the advertising
requirements, they would be able to ad­
vertise “ no downpayment” or the amount
of the payments without further informa­
tion, which is prohibited for creditors
subject to the Act.
In addition, home improvement con­
tractors might avoid giving customers the
right of rescission, even where they ob­
tained a second mortgage on the cus­
tomer’s home, simply by “ burying”
the finance charges in the price.
In short, the Board is convinced that
invalidation of its “ more-than-four-instalments” regulation could seriously im­
pair the effectiveness of the legislation.
We believe that Congress should amend
the Act to remove any possible doubt
about its coverage of transactions pay­
able in more than four instalments and
has suggested language for such legisla­
tion.




STATEMENT TO CONGRESS

Agricultural credit. The inclusion of ag­

ricultural credit under the coverage of the
Act has stirred a great deal of controversy,
and has created numerous problems, as
I mentioned earlier.
Some creditors have argued that the
very nature of many agricultural credit
transactions (which frequently involve
advances and payments for which both
time and amount are unknown at the time
of consummation of the transaction)
makes them unsuited for meaningful
disclosure. Furthermore, it has frequently
been argued that since agriculture is a
business, it should be exempt from cover­
age of the Act, just as other business
credit is exempt. In spite of the amend­
ments to Regulation Z designed to make
disclosures easier for agricultural creditors
and more meaningful for farmers, the
problems have not been completely solved.
Knowing the general view of creditors
that credit for agricultural purposes should
be exempt, the Board’s staff contacted a
number of agricultural associations in an
effort to determine the views of the per­
sons who actually use agricultural credit.
While the majority of the associations
that responded indicated that agriculture
should be exempt, two of the largest
representing general agricultural interests
(the Farmers Union and the National
Grange) supported continued coverage.
In addition, a poll of a number of agricul­
tural economists indicated a 3 to 1 response
in favor of continuing coverage. In a poll
of directors of farmer cooperatives, which
has been reported to the Board, 55 per
cent said that Truth in Lending dis­
closures assisted them in determining
credit costs, while 42 per cent indicated
that the disclosures were of no assistance.
Furthermore, 45 per cent indicated that
Truth in Lending made little change in
their credit-buying habits.
All of this suggests that a strong case




387

cannot be made for either complete cover­
age or complete exemption of agricul­
tural credit under Truth in Lending. How­
ever, it tends to reinforce the reasons for
the Board’s continuing to recommend
that credit primarily for agricultural pur­
poses in excess of an appropriate amount
(we have suggested $25,000) be exempted
from the provisions of the Act, whether
or not secured by real property. This
action by Congress would remove from
coverage the larger credits that are general­
ly extended to more sophisticated bor­
rowers who are less in need of the dis­
closures, while still providing the bene­
fits of disclosure to the smaller bor­
rowers. Such an amendment would bene­
fit creditors by eliminating the need for
disclosures in some large and complex
credit situations.
Administrative enforcement. Finally, the
Board has recommended that the enforce­
ment responsibility relating to Federal land
banks, Federal land bank associations,
Federal intermediate credit banks, and
production credit associations be trans­
ferred from the Federal Trade Commis­
sion to the Farm Credit Administration,
the agency with general supervisory
authority over those creditors. Both agen­
cies concur in this suggestion.
AREAS FOR FURTHER STUDY
There are some remaining areas for
further study in Truth in Lending that
concern the Board. We are studying
these areas to determine whether there is
a need for further action either by the
Board or by the Congress.
Discounts. One area of study relates to
discounts. The initial disclosure require­
ments relating to discounts for prompt
payment posed serious compliance prob­
lems. The apparent effect of treating
the offering of discounts as involving
finance charges has caused some discon­

388

FEDERAL RESERVE BULLETIN □ APRIL 1972

tinuance of the discount practice, to the
detriment of those consumers who pay
early. An August 1969 amendment to
Regulation Z alleviated but did not en­
tirely solve the problem. We are giving
the problem further study.
Disclosures in foreign language. An­
other area of inquiry involves the desir­
ability of requiring disclosures in foreign
languages. In order to provide uniform­
ity in disclosure of credit terms, Regulation
Z requires certain English terminology
to be used. However, such disclosures
may be of little value to consumers who
do not understand English. Although
disclosures must be given before con­
summation of a credit transaction and,
theoretically, a consumer can obtain an
explanation or a translation of the dis­
closures before committing himself, this
is not likely to happen in actual practice.
A number of possible solutions to this
problem have been considered, but none
that we have explored appear feasible.
As I have mentioned, the Board has
taken a step toward alleviation of the
problem by publishing a Spanish version
of the consumer leaflet, W hat Truth in
L ending M ean s to You. The initial de­
mand for this leaflet has been encourag­
ing.
Advertising. A third area of study re­
lates to the lack of advertising of specific
credit terms. The inclusion of specific
credit terms in credit advertising appears
to be continuing at a level substantially
lower than desirable to enable consumers
to use advertising effectively as a means
to shop for the best credit terms available.
However, there are indications of in­
creased use of more specific advertising.
Creditor complaints against the advertising
restrictions have diminished. We are re­
viewing this area to determine whether
changes can be made in the regulation
or the Act to encourage greater inclusion

of specific credit terms in credit advertis­
ing.
Complexity. Regulation Z is complex.
Truth in Lending disclosures are complex.
A goal to which we are continually
working is simplification of both the
regulation and the disclosures. Unfortu­
nately, given the complexity of credit
transactions, much of it the product of
complex State legislation, there seems to
be little hope of significantly reducing
the intricacy of Truth in Lending. Never­
theless, that is our goal and we will con­
tinue to adjust the requirements of Regula­
tion Z as best we can to meet this goal.
By mentioning these problem areas, I
do not suggest that no other provisions of
the Act and Regulation Z raise difficult
questions. Such questions seem to arise
every day. Fortunately, we have been able
to resolve most of them. We believe,
despite all the problems, Truth in Lend­
ing is serving the public well.




CONCLUSION
The real test of the worth of this law is
whether it is achieving its purpose,
which as stated in the Act is “ to assure a
meaningful disclosure of credit terms so
that the consumer will be able to com ­
pare more readily the various credit
terms available to him and thereby avoid
the uninformed use of credit.” To obtain
some indications, the Board has con­
ducted two surveys of consumer awareness
of finance charges and interest rates.
The first survey was conducted in June
1969, and was designed to serve as a
benchmark of consumer awareness prior
to the advent of Federal Truth in Lend­
ing. The second took place during Septem­
ber and October 1970. The results were
compared with the first survey’s results
to determine changes in consumer knowl­
edge since Federal Truth in Lending be­
came operative.

STATEMENT TO CONGRESS

The surveys yielded these three major
findings:
1. The proportion of consumer-borrowers with no knowledge of the annual
percentage rates they were paying has
declined substantially.
2. A greater proportion of those bor­
rowers who believe they know the annual
percentage rates they are paying re­
ported rates in line with prevailing
rates for the types of credit involved.
3. In spite of the general improve­
ment in consumer awareness, there re­
mains a large proportion of consumerborrowers who are not aware of the
annual percentage rate they are paying.




389

The results, then, are mixed but en­
couraging. The problems have not been
insoluble, as claimed by some of Truth
in Lending’s early opponents, but neither
has the public’s confusion over credit
costs been completely eradicated, as
hoped for by some supporters of the
Act.
In summary, the public is better in­
formed than before enactment of Truth in
Lending, the major problems in imple­
mentation have been solved, and with
continued education the benefits to the
public will increase.
I appreciate having had the opportunity
to appear before this subcommittee.
□

390



Record of Policy Actions
of the Federal Open Market Committee

R eco rd s of p o licy actions taken by the F ed eral O pen M ark e t C o m ­
m ittee at each m e e tin g , in the fo rm in w hich they w ill ap p ea r in the
B o a rd ’s A n n u al R e p o rt, are released ap p ro x im ately 90 days
fo llo w in g the d ate o f th e m eetin g and are su b seq u en tly p u b lish ed
in the F ed eral R eserv e B u l l e t i n .
T h e reco rd fo r each m eetin g includes the votes on the p o licy
d ecisio n s m ad e at the m eetin g as w ell as a resu m e o f the basis for
the d ecisio n s. T h e su m m ary d escrip tio n s of eco n o m ic and financial
co n d itio n s are b ased on th e in fo rm atio n th at w as availab le to the
C o m m ittee at the tim e o f the m ee tin g , rath e r than on d a ta as they
m ay h av e b een rev ised sin ce then.
P o licy d irectiv es o f the F ederal O pen M ark et C om m ittee are
issu ed to the F ed eral R eserv e B ank of N ew Y ork— the B ank
selected b y the C o m m ittee to ex ecu te tran sactio n s for the S ystem
O p en M a rk e t A cco u n t.
R eco rd s of p o licy actio ns have been p u b lish ed reg u larly in the
B u l l e t i n b eg in n in g w ith the July 1967 issu e , and such records
h av e co n tin u ed to be p u b lish ed in the B o a rd ’s A n nual R eports.
T h e reco rd fo r th e m eetin g held on Jan u ary 11, 1972, fo llow s:

MEETING HELD ON JANUARY 11,1972

1. Current Economic Policy Directive.
T h e in fo rm atio n re v ie w e d at this m eetin g su g g ested th at the rate
of g ro w th in real o u tp u t of g o o d s and services (real g ro ss national
pro d u ct) h ad step p ed u p in the fo u rth q u arter o f 1971 and that
p ric e s, w h ich h ad b een su b ject to G o v ern m en t co n tro ls since m idA u g u st, h ad risen re la tiv e ly little fro m the th ird to the fo u rth
q u arter. Staff p ro jectio n s su g g ested th at the faster p ace o f g row th
in real G N P w o u ld co n tin u e in th e first h alf of 1972.
In D ec e m b e r n o n farm p ay ro ll em p lo y m en t and in d u strial p ro ­
d u ctio n ro se fu rth e r, alth o u g h to a large ex ten t the gains w ere
attrib u tab le to p o st-strik e reco v ery in coal m in in g . T he u n e m p lo y ­
m en t rate e d g ed u p to 6.1 fro m 6 .0 p er cen t in N o v e m b er. R etail
sales fell in D e c e m b e r, acco rd in g to the ad vance re p o rt, in part
b ecau se sales of new cars d ro p p ed from the h ig h rates p rev ailin g
d u rin g th e first p h ase o f th e new eco n o m ic pro g ram .
T h e rates o f in crease in p rices and w ag es, w hich had slow ed
sh arp ly d u rin g th e freeze in effect fro m m id -A u g u st to m idN o v e m b e r, p ick ed u p a fterw ard . U n d er the p o st-freeze p ro g ram ,
som e in creases in w ag es— b o th p rev io u sly sch ed u led and new ly
n e g o tia te d — w ere allo w ed to g o into effect, som e of the m any
p e n d in g ap p licatio n s for p rice increases w ere a p p ro v ed , and a
g en eral in crease in resid en tial rents w as authorized.
T h e latest staff p ro jectio n s fo r the first half of 1972 w ere sim ilar
to th o se of 4 w eek s e a rlie r, alth ough the ex p an sio n now exp ected
in co n su m e r sp en d in g w as n o t so rapid. A lso , the p ro jecte d rise
in F ed eral o u tlay s in the first q u arter had been in creased as a c o n ­
seq u en ce o f a recen tly en acted G o v ern m en t p a y raise effective
in early Ja n u a ry . It w as still an ticipated th at bu sin ess capital
o u tla y s, resid en tial co n stru ctio n , and State and lo cal g o v ern m en t
ex p e n d itu re s w o u ld g ro w at substantial rates and th at b u siness
in v en to ry in v e stm e n t w o u ld increase fu rther.
T h e F in an ce M in isters and central bank G o v ern o rs of the G roup
o f T e n , m eetin g at the S m ith sonian In stitu tio n in W a sh in g to n ,
reach ed a g reem en t on D ecem b er 18 reg arding re v alu atio n s of foreign




391

392




FEDERAL RESERVE BULLETIN □ APRIL 1972

cu rren cies ag ain st th e d o llar and a w id en in g o f p e rm issib le m argins
fo r e x ch an g e rate fluctuations. F o llo w in g an n o u n cem e n t of the
ag re e m e n t, m ark et ex c h a n g e rates fo r m ajo r fo re ig n curren cies
ag ain st the d o llar g en erally m oved up to levels a little above their
n ew lo w er lim its. O utflow s of sh ort-term capital fro m the U nited
S tates— w h ich h ad b een very large d u ring m u ch o f 1971— cam e
to a h a lt, an d som e fu n d s flo w ed b ack befo re the year-en d .
H o w e v e r, th e U .S . basic b alan ce o f p ay m en ts rem a in ed in deficit
an d fo reig n official reserv es declin ed only a little.
D em an d s for b u sin ess loans at co m m ercial banks rem ain ed
w eak in D e cem b er, and m o st large b an k s re d u c ed th eir prim e
rates aro u n d the en d o f th at m o n th . R eal estate and c o n su m er
loans co n tin u ed to ex p an d at a rap id p ace in D ec em b e r and banks
sh arp ly in creased th eir h o ld in g s of secu rities.
T h e n arro w ly defined m oney stock (p riv ate d em an d d eposits
plu s cu rren cy in c irc u la tio n , or M ,), w h ich had not g ro w n on
b alan ce fro m A u g u st to N o v e m b er, rose so m ew h at fro m N o v em b er
to D e cem b er. O v er the fo u rth q u arter
in creased at an annual
rate of ab o u t 1 p er c e n t, after rising at rates of about 3 .5 per cent
o v er th e th ird q u arter an d 10 p er cent over the first h alf o f 1 9 7 1 .1
Inflow s o f sav in g s to co m m ercial banks in creased in D ecem b er
and the m o n ey sto ck m o re b ro ad ly defined (M t plus co m m ercial
b an k tim e d ep o sits o th e r than larg e-d en o m in atio n C D ’s, o r M 2)
rose at a su b stan tial rate. G ro w th in the ban k credit p ro x y — dailyav erag e m e m b e r b an k d e p o sits, ad ju sted to in clude fu n d s fro m
n o n d e p o sit so u rces— also w as su bstantial as the average volum e
o f b o th la rg e-d en o m in atio n C D ’s ou tstan d in g and U .S . G o v e rn ­
m en t d ep o sits e x p an d ed . A t the sam e tim e, b an k s red u ced th eir
o u tstan d in g b o rro w in g s of E uro -d o llars by large am ounts. O ver
the fo u rth q u arter M 2 and the p ro x y series in creased at annual
rates of ab o u t 8 an d 9 .5 p er ce n t, resp ectiv ely .
S y stem o pen m a rk e t op eratio n s in the p erio d since the last
m eetin g of the C o m m ittee had been co m p lica ted by y ear-end
ch u rn in g in th e m o n ey m ark e t and by u n certain ties reg ard in g the
lik ely v o lu m e of reflow s of sh ort-term cap ital fo llo w in g the S m ith ­

1G row th rates cited are calculated on the basis of the d aily-average level in the
last m onth of the period relative to that of the preceding period.

RECORD OF POLICY ACTIONS OF FOMC

son ian A g reem en t. It w as e x p ected th at if the reflow s w ere large
th ey w o u ld be a cco m p an ied by heav y fo reig n cen tral ban k sales
of T reasu ry secu rities. In o rd er to leave scope fo r fu tu re o u tright
p u rch ases o f secu rities to m o d erate the m ark et im pact o f such
sales, the S ystem m ad e e x ten siv e use of rep u rch ase agreem ents
in the latter p art of D ec e m b e r to supply reserv es on a tem p o rary
b asis. In fa c t, h o w e v e r, reflow s d u rin g the p e rio d w ere of quite
m o d e st d im en sio n s.
O v er the p erio d as a w h ole S ystem op eratio n s had been
d irected at fo sterin g a su b stan tial easin g in m o n ey m ark e t c o n ­
d itio n s, ag ain st the b ac k g ro u n d of the b eh av io r of the m o n etary
ag g reg ates— p articu larly th e c o n tin u in g slug g ish n ess o f M ,. T he
F ed eral fu n d s rate w as ab o u t 3% per cent at the tim e o f this
m e e tin g , d o w n fro m th e lev el of about 4% per cen t p rev ailin g at
th e tim e of th e p reced in g m eetin g . In the 4 w eeks en d in g Jan u ary
5 , m em b er b an k b o rro w in g s av eraged $110 m illio n co m p ared
w ith $395 m illio n in th e p reced in g 4 w eeks.
A t the tim e of this m eetin g in terest rates on m o st types of
m a rk e t secu rities w ere lo w er than they had been in m id -D ecem b er.
S h o rt-term rates h ad fa lle n , in p art b ecause o f the easin g o f m o n ey
m a rk e t c o n d itio n s asso ciated w ith the S y ste m ’s reserv e-su p p ly in g
o p eratio n s and b ecau se of an ticip atio n s on the p art o f m arket
p articip an ts of still g reater ease. E ven w ith the au ctio n on
D ec e m b e r 22 of $ 2 .5 b illio n o f tax -an ticip atio n b ills, T reasu ry
bill rates had co m e u n d er stro n g do w n w ard p ressu re as the reflow
of sh o rt-term cap ital from a b ro ad — and the co n se q u en t sales
of bills by fo reig n cen tral b an k s— proved to be far less than the
m ark et h ad ex p e c te d . O n the day before this m eetin g o f the
C o m m itte e , th e m ark et rate on 3-m onth bills w as about 3 .0 0
p er cen t co m p ared w ith 3 .9 5 p er cen t 4 w eeks earlier.
D eclin es in rates for lo n g -term securities w ere m uch m ore
m o d erate. E arly in th e p erio d capital m arkets w ere still under
th e influence of the T re a su ry ’s N o v em b er financing, and later
they w ere affected b y d iscu ssio n of the p o ssib ility th at the F eb ru ary
financing— the term s of w h ich w ere exp ected to be annou n ced
n ear th e en d of Ja n u ary — w o uld include an advance refu n d in g .
P u b lic o fferings of new co rp o rate bo n d s w ere lig h t, as is usual in
D e c e m b e r, b u t o fferings of n ew S tate and local g o v e rn m e n t bonds




393

394




FEDERAL RESERVE BULLETIN □ APRIL 1972

w ere c o n traseaso n ally larg e. It w as e x p ected th at the volum e
of c o rp o rate issu es w o u ld reb o u n d in Jan u ary b u t th at issues
of S tate an d local g o v ern m en ts w o u ld tap er off.
Y ield s in the seco n d ary m ark et fo r fed erally in su red m o rtg ag es
d eclin ed slig h tly fu rth er in D ecem b er. Inflow s o f savings to
n o n b an k th rift in stitu tio n s, w hich h a d slo w ed in N o v e m b er,
in creased in D ecem b er as the relativ e attractiv en ess o f savings
shares an d d ep o sits w as en h an ced by the fu rth e r declin es in
m a rk e t in terest rates.
In th e C o m m itte e ’s d iscu ssio n co n sid erab le co n cern w as
e x p ressed ab o u t th e p ersisten t sluggishness o f key m o n etary a g g re ­
g ates, and a n u m b er of m em b ers ad v ocated action to p rovide
sufficient reserv es to su p p o rt the faster m o n etary g ro w th th at they
b eliev ed w as req u ired b y the e co n o m ic situ atio n and ou tlo o k . It
w as n o ted in this c o n n ectio n th at the level of m e m b er bank
re se rv e s, as w ell as that o f M x, had chan g ed little d u rin g the fourth
q u arter d esp ite a p ro g re ssiv e easin g of m o n ey m ark et co n d itio n s.
In th e in terest o f assu rin g the p ro v isio n o f reserv es n eed ed for
ad eq u ate g ro w th in m o n e ta ry ag g reg ates, the C om m ittee decid ed
that in the p erio d u n til its nex t m eetin g open m ark et o p eratio n s,
w h ile co n tin u in g to tak e ap p ro p riate acco u n t o f co n d itio n s in the
m o n ey m a rk e t, should be g u ided m ore by the co u rse of total
reserv es th an h ad b een c u sto m ary in the p ast.
T h e m em b ers also ag reed th at in the co u rse of o p erations
acco u n t sh o u ld be tak en o f in tern atio n al d ev elo p m en ts a n d , b e g in ­
n in g late in the m o n th , o f the fo rth co m in g T reasu ry financing.
In p lacin g g reater em p h asis on total re se rv e s, the C om m ittee
to o k note o f a staff an aly sis su g gesting th at m o d erate rates of
g ro w th in M x and M 2 in Jan u ary and F eb ru ary w ere lik ely to be
asso ciated w ith a larg e in crease in total reserv es fro m D ecem b er
to Ja n u ary and then a d eclin e in F eb ru ary — m ain ly as a co n se ­
q u en ce of recen t and an ticip ated changes in U .S . G o v ern m en t
d e p o sits, and allo w in g fo r the 2-w eek lag b etw een m e m b er bank
dep o sits and req u ired reserv es. A g ain st the b a c k g ro u n d of this
an aly sis, a m ajo rity ag reed th at an annual rate o f g ro w th in total
reserv es of ro u g h ly 20 to 25 p er cent fro m D ece m b er to January
w o u ld be satisfacto ry , p ro v id ed th at it co u ld be attain ed w ithout
u n d u e ea sin g of m o n ey m a rk et co n d itio n s.

RECORD OF POLICY ACTIONS OF FOMC

The following current econom ic policy directive was issued
to the Federal Reserve Bank of N ew York:
The information reviewed at this meeting suggests that real
output of goods and services increased more rapidly in the fourth
quarter than it had in the third quarter, but the unemployment rate re­
mained high. In recent weeks wage and price developments have re­
flected some increases that had been deferred under the 90-day freeze.
The narrowly defined money stock, which had not grown on balance
from August to November, rose somewhat in December, while both
the broadly defined money stock and the bank credit proxy increased
substantially. Market interest rates, particularly short-term rates, have
declined in recent weeks. After international agreement was
reached in December on new central exchange rates and on wider
margins of permissible variation, market exchange rates for major
foreign currencies against the dollar initially moved to levels a little
above their new lower limits. The volume of capital reflows to the
United States has been modest, however, and the underlying U.S.
balance of payments remains in deficit. In light of the foregoing
developments, it is the policy of the Federal Open Market Commit­
tee to foster financial conditions consistent with the aims of the
new governmental program, including sustainable real economic
growth and increased employment, abatement of inflationary pres­
sures, and attainment of reasonable equilibrium in the country’s
balance of payments.
To implement this policy, while taking account of international
developments and the forthcoming Treasury financing, the Com­
mittee seeks to promote the degree of ease in bank reserve and
money market conditions essential to greater growth in monetary
aggregates over the months ahead.
Votes for this action: Messrs. Burns, Clay,
Daane, Maisel, M ayo, Mitchell, Morris, Robertson,
and Sheehan. Votes against this action: Messrs.
Hayes, Brimmer, and Kimbrel.

Messrs. Hayes, Brimmer, and Kimbrel differed somewhat in
their reasons for dissenting from this action. Mr. Hayes consid­
ered the emphasis placed on total reserves as an operating target
to be an undesirable step; in his judgment, reserves were much
less meaningful than other measures, such as the monetary and




395

FEDERAL RESERVE BULLETIN □ APRIL 1972

396




cred it ag g reg ates and in terest ra te s, as an in stru m en t fo r w o rk in g
to w ard th e C o m m itte e ’s b asic eco n o m ic o b je ctiv es. A lso , he
w as relu c ta n t to issu e a d ire ctiv e th at m ig h t in v o lv e a su bstantial
fu rth er ea sin g o f m o n ey m ark et c o n d itio n s, since the C o m m ittee
had alread y m o v ed rap id ly in th at d irectio n and since it ap p eared
to h im th at th e eco n o m ic o u tlook had im p ro v ed so m ew h at in
recen t m o n th s. H e w as co n ce rn ed about the risk th at a fu rth er
sharp d ec lin e in sh o rt-term in terest rates m ig h t su b ject financial
m ark ets to u n n ecessary w h ip saw in g and m ig h t ten d to rek indle
inflationary ex p ectatio n s.
M r. B rim m er shared the m a jo rity ’s view s co n cern in g broad
o b jectiv es o f p o licy at this tim e, and he in d icated th at he w ould
h av e v o ted fav o rab ly on th e directiv e w ere it n o t for the decisio n
to g iv e sp ecial em p h asis to total reserv es as an o p eratin g target
d u rin g co m in g w eek s. In his ju d g m en t the C om m ittee sh o u ld have
had m o re d iscu ssio n of th e im p licatio n s of th at d e cisio n , and in
any case it sh o u ld h av e p o stp o n e d the d ecisio n until after it had
h eld a c o n tem p lated m eetin g to be d ev o ted p rim arily to d iscu ssio n
o f its g en eral p ro ced u res w ith resp ect to o p eratin g targets.
M r. K im b rel fav o red su pplying reserves at a rate th at w ould
a cco m m o d ate o rd erly eco n o m ic ex p an sio n . H e v o ted against
the d ire c tiv e b ecau se he th o u g h t it in v o lv ed risk s o f d e p ressin g
sh o rt-term in terest rates to un su stain ab ly low levels and o f p ro ­
d u cin g ex cessiv e rates of g row th in the m o n etary agg reg ates in
th e fu tu re.

2. Ratification of earlier actions.
E arlier in th e co u rse o f this m eetin g the C o m m ittee , by u n anim ous
v o te, ratified the actio n tak en by the m em b ers on D ece m b er 20,
1971, ad d in g the clau se “ w hile tak in g acco u n t o f in tern atio n al
d e v e lo p m e n ts” at the en d of the final sen ten ce o f the current
eco n o m ic p o licy d irectiv e th en in effect.
A lso , w ith M r. R o b ertso n d issen tin g , the C om m ittee ratified
th e actio n tak en by v ote o f a m ajo rity on D ec em b e r 23, 1971, to
su sp e n d , u n til clo se of b u sin ess on the day of the n ex t m eetin g ,
th e lo w er lim it (specified in p arag rap h 1(c) of the co n tin u in g
au th o rity d irectiv e w ith resp ect to dom estic op en m a rk e t o p e ra ­
tio n s) on in terest rates on rep u rch ase ag reem en ts arranged by the

RECORD OF POLICY ACTIONS OF FOMC

F ed eral R eserv e B an k o f N ew Y ork w ith non b an k dealers. T he
su sp en d ed p ro v isio n specified th at such rep u rch ase agreem ents
w ere to be m ad e “ at rates n o t less than (1) the d isco u n t rate of
the F ed eral R eserv e B an k o f N ew Y ork at the tim e such ag reem ent
is en tered in to , or (2) th e av erage issuing rate on the m o st recen t
issu e o f 3 -m o n th T reasu ry b ills, w h ich ev er is the lo w e r.”
T h e tw o actio n s in q u estio n had been taken fo r reaso n s set
fo rth in th e p o licy reco rd fo r the m eetin g held on D ec em b e r 14,
1971. M r. R o b ertso n d issen ted from ratification of the second
actio n fo r the sam e reaso n s th at had led him to dissen t fro m the
actio n itse lf, as d escrib ed in th at po licy reco rd .




397

Law Department
Statutes, regulations, interpretations, and decisions

INTERPRETATIONS OF REGULATION T

INSTALMENT SALE OF TAX-SHELTER
PROGRAMS AS “ ARRANGING” FOR
CREDIT
The Board has been asked whether the sale by
brokers and dealers of tax-shelter programs con­
taining a provision that payment for the program
may be made in instalments would constitute
“ arranging” for credit in violation of Part 220
(Regulation T). For the purposes of this inter­
pretation, the term “ tax-shelter program ” means
a program which is required to be registered pur­
suant to section 5 of the Securities Act of 1933 (15
U .S.C . § 77e), in which tax benefits, such as the
ability to deduct substantial amounts of deprecia­
tion or oil exploration expenses, are made avail­
able to a person investing in the program. The
programs may take various legal forms and can
relate to a variety of industries including, but
not limited to, oil and gas exploration programs,
real estate syndications (except real estate invest­
ment trusts), citrus grove developments and cattle
programs.
The most common type of tax-shelter program
takes the form of a limited partnership. In the case
of the programs under consideration, the investor
would commit himself to purchase and the partner­
ship would commit itself to sell the interests. The
investor would be entitled to the benefits, and be­
come subject to the risks of ownership at the time
the contract is made, although the full purchase
price is not then required to be paid. The balance
of the purchase price after the down payment
usually is payable in instalments which range from
one to ten years depending on the program. Thus,
the partnership would be extending credit to the
purchaser until the time when the latter’s con­
tractual obligation has been fulfilled and the final
payment made.
With an exception not applicable here, § 220.7
(a) of Regulation T provides that:
“ A creditor [broker or dealer] may arrange for
the extension or maintenance of credit to or for any
customer of such creditor by any person upon the

398



same terms and conditions as those upon which
the creditor, under the provisions of this part, may
himself extend or maintain such credit to such
customer, but only jpon such terms and condi­
tions, . . .” (Emphasis supplied.)
In the case of credit for the purpose of purchasing
or carrying securities (purpose credit), § 220.8 of
the regulation (the Supplement to Regulation T)
does not permit any loan value to be given securi­
ties that are not registered on a national securities
exchange, included on the Board’s OTC Margin
List, or exempted by statute from the regulation.
The courts have consistently held investment
programs such as those described above to be
“ securities” for purpose of both the Securities Act
of 1933 and the Securities Exchange Act of 1934.
The courts have also held that the two statutes are
to be construed together. Tax-shelter programs,
accordingly, are securities for purposes of Regula­
tion T. They also are not registered on a national
securities exchange, included on the Board’s OTC
Margin List, or exempted by statute from the
regulation.
Accordingly, the Board concludes that the sale
by a broker/dealer of tax-shelter programs contain­
ing a provision that payment for the program may
be made in instalments would constitute “ arrang­
ing’ ’ for the extension of credit to purchase or carry
securities in violation of the prohibitions of §§
220.7(a) and 220.8 of Regulation T .
CREDIT ON MUTUAL FUND SHARES
The Board of Governors has been asked whether
a broker or dealer may extend, maintain, or arrange
for credit in a special bond account subject to §
220.4(i) of Regulation T on collateral consisting
of shares of registered open-end investment com­
panies whose portfolios are made up entirely or
in part of exempted securities.
The term “ exempted securities” is defined in
section 3(a)(12) of the Securities Exchange Act of
1934 (15 U .S.C . § 78c(a)(12)) and generally in­
cludes Federal, State, and municipal securities.
Such securities are eligible as collateral for exten­
sions of credit in § 220.4(i) and are entitled to good

faith loan value in an account carried pursuant to
that section, under § 220.8(b).
Part 220 (Regulation T) provides that brokers and
dealers may not extend, maintain, or arrange for
credit to purchase any securities unless the col­
lateral for such credit consists of exempted securi­
ties or securities that are registered on a national
securities exchange or appear on the Board’s
OTC Margin List. Shares in registered open-end
investment companies are not “ exempted” secu­
rities, irrespective of the composition of the port­
folio of the company, nor are they registered on
national securities exchanges, or included on the
OTC Margin List. Accordingly, such shares do
not have loan value for purposes of Part 220 (Reg­
ulation T), nor may brokers or dealers extend
credit against such shares to purchase or carry any
securities under § 220.4(i) of such part.
The above-stated opinion is in conformity with
the Board’s views expressed previously in its
interpretations announced in 1952 B u l l e t i n 1105
(12 CFR 220.109) and 1955 B u l l e t i n 267 (12
CFR 220.112) to the effect that brokers or dealers
are prohibited from arranging credit to purchase
unlisted shares issued by open-end investment
companies.

ORDERS UNDER BANK MERGER ACT

UNION COUNTY TRUST COMPANY,
ELIZABETH, NEW JERSEY
O

rd er

A

fo r

p p r o v in g

M

erg er

A

o f

p p l ic a t io n

B

a n k s

Union County Trust Company, Elizabeth, New
Jersey (“ Union Trust” ), a member State bank of
the Federal Reserve System, has applied for the
Board’s approval pursuant to the Bank M erger Act
(12 U .S.C . 1828(c)) of the merger of that bank with
Keansburg-Middletown National Bank, M iddle­
town, New Jersey (“ Keansburg Bank” ), under the
charter of Union Trust and title of United Counties
Trust Company. As an incident to the merger, the
present offices of Keansburg Bank would become
branches of the resulting bank.
As required by the Act, notice of the proposed
merger, in form approved by the Board, has been
published, and the Board has requested reports on
competitive factors from the Attorney General, the
Comptroller of the Currency, and the Federal
Deposit Insurance Corporation.
The Board has considered the application and
all comments and reports received in the light of




the factors set forth in the Act, and finds that:
Union Trust ($213 million deposits),1 located in
the Second Banking District of New Jersey, serves
primarily the Greater Newark Market. It controls
5 per cent of the M arket’s deposits and is the sixth
largest of 45 banks located there. Union Trust oper­
ates 18 branch offices, 16 in Union County, and
one branch each in Somerset and Monmouth
Counties.
Keansburg Bank ($67 million deposits) serves
primarily the northern section of Monmouth County
that includes the Township of Middletown wherein
its main office and four of its five branches are
located, and the town of Keansburg where the
remaining branch is located. The home office pro­
tection feature of State law which prohibits de novo
branching into Middletown will not be removed
if the present proposal is consummated.
The relevant market within which the com­
petitive effects of the merger are to be assessed is
the Asbury Park Market, which consists of all of
Monmouth County with the exception of the com­
munities of Millstone, Roosevelt, Upper Freehold
and Allentown (all located in the western portion
of Monmouth County) and which Market includes
the economically significant seashore communi­
ties located in a 25-mile sector of the eastern por­
tion of Monmouth County. There are 12 banks
operating 92 offices in the Asbury Park M arket,2 the
four largest of which hold 78.8 per cent of total
deposits. Keansburg Bank ranks fifth with 6.7 per
cent of such deposits. Union Trust’s branch office
in Monmouth County is located in Eatontown,
which is within the Asbury Park Market. How­
ever, Union Trust’s Eatontown branch office
holds only a negligible percentage of the m arket’s
deposits. Consummation of the proposed transac­
tion would not significantly increase the concen­
tration of banking deposits in any area.
Union Trust’s Eatontown branch is the closest
office to a Keansburg Bank office. They are located
five miles apart. However, the service areas of
the two branch offices do not overlap, and there
is no significant present competition between the
two banking offices or any other offices of each
bank. Whereas there is some likelihood that con­
summation of the proposal may eliminate some
degree of potential competition between Applicant
and Keansburg Bank, it appears that the merger

‘Total deposit data are as of June 30, 1971. D ata regarding m arket
deposit rank and m arket shares are as of June 30,1970.
2Office data are as of D ecem ber 2 9 ,1 9 7 1 .

399

FEDERAL RESERVE BULLETIN □ APRIL 1972

400

will stimulate competition by increasing Keansburg
Bank’s ability to compete in the Asbury Park
Market with the four larger banks and with the
two smaller local banks that have recently become
affiliated with two First Banking District holding
companies, each of which holds approximately
$1 billion in deposits. At the present time Keans­
burg Bank holds less than half the deposits of the
fourth largest bank in the Asbury Park Market.
The financial and managerial resources of Ap­
plicant are satisfactory; the same is true of Keans­
burg Bank with the exception of needed improve­
ment in its capital position which would be re­
solved by consummation of this proposal. There­
fore, the prospects for the resulting bank would
be favorable, and banking factors lend some sup­
port for approval of the application. Consumma­
tion of the proposal would improve the present
banking services available to customers of Keans­
burg Bank in the rapidly developing Monmouth
County, particularly in expanded consumer credit,
trust and fiduciary services and enlarged lending
limits for commercial and industrial loans. Con­
venience and needs considerations, therefore, are
consistent with approval of the application. It is
the Board’s judgment that consummation of the
proposal 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 consummated (a)
before the thirtieth calendar day following the date
of this Order or (b) later than three months after
the date of this Order, unless such period is ex­
tended 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, March 3,
1972.
Voting for this action: Vice Chairman Robertson and Gov­
ernors Daane, Brimmer, and Sheehan. Absent and not voting:
Chairman Burns and Governors Mitchell and Maisel.

[s e

a l

]




(Signed) T y n a n S m i t h ,
Secretary o f the Board.

THE ASHLAND STATE BANK OF
ASHLAND, ASHLAND, OHIO
O

rd er

A

p p r o v in g

M

erg er

A

o f

p p l ic a t io n

B

fo r

an ks

The Ashland State Bank of Ashland, Ashland,
Ohio, a nonoperating proposed member State
bank of the Federal Reserve System, has applied
for the Board’s approval pursuant to the Bank
Merger Act (12 U .S.C . 1828(c)) of the merger of
that bank with The Ashland Bank & Savings Com­
pany, Ashland, Ohio (“ Bank” ), under the charter
of the former and the name of the latter. As an
incident to the merger, the present branch of The
Ashland Bank & Savings Company will continue
as a branch of the resulting bank. 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 by First Banc Group of
Ohio, In c., Columbus, Ohio.
As required by the Act, notice of the proposed
merger, in form approved by the Board, has been
published, and the Board has requested reports on
competitive factors from the Attorney General,
the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation. The Board has
considered all material contained in the record in
the light of the factors set forth in the Act.
On the basis of the record, the application is
approved for the reasons summarized in the
Board’s Order of January 25, 1972, approving
the application of First Banc Group of Ohio, Inc.,
to acquire 100 per cent of the voting shares of the
successor by merger to The Ashland Bank & Sav­
ings Company, Ashland, Ohio, provided that
said merger shall not be consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the 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 delegated authority.
By order of the Board of Governors, March 23,
1972.
Voting for this action: Chairman Burns and Governors Rob­
ertson, Daane, Maisel, Brimmer, and Sheehan. Absent and not
voting: Governor Mitchell.

[S E A L ]

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

LAW DEPARTMENT

401

ORDERS UNDER SECTION 3 OF BANK
HOLDING COMPANY ACT

FIRST NATIONAL CITY CORPORATION,
NEW YORK, NEW YORK
O

rder

A

p p r o v in g

A

c q u is it io n

o f

B

a n k

First National City Corporation, New York,
New York, 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
100 per cent of the voting shares (less directors’
qualifying shares) of the successor by merger to
The Silver Creek National Bank, Silver Creek,
New York (“ Bank” ).
The bank into which Bank is to be merged has
no significance except as a means of acquiring the
voting shares of Bank. Accordingly, the proposed
acquisition of the shares of the successor organiza­
tion is treated herein as the proposed acquisition
of the shares of Bank.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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 finds that:
Applicant controls two banks with total deposits
of 13.4 billion, representing 14.1 per cent of the
total deposits in commercial banks in New York,
and is the State’s second largest banking organiza­
tion. (Unless otherwise noted, banking data are
as of June 30, 1971, adjusted to reflect holding
company formations and acquisitions„ through
December 31, 1971.) Consummation of the pro­
posal would not change Applicant’s present
ranking nor significantly increase its share of
State deposits.
Bank (deposits of $11.2 million) is the smallest
of five banks in the Dunkirk-Fredonia banking
market, controlling 7.3 per c e n t1 of the deposits
in that market. The nearest office of Applicant’s
subsidiary bank is 420 miles from Bank and there
is no significant existing competition between
this or any other of A pplicant’s subsidiaries.
Bank is the only bank available for acquisition in
its market; Applicant’s only alternative for entering
Bank’s market would be through establishing a
de novo bank. The economic characteristics of
the Dunkirk-Fredonia banking market make de
novo entry very unlikely. Consummation of the
‘ Banking data related to m arket share are as of June 30, 1970.




proposal would foreclose no existing or potential,
competition.
The financial and managerial resources and
future prospects of Applicant, its subsidiary banks
and Bank are satisfactory and consistent with
approval. The banking needs of the communities
involved are being adequately met at present.
However, Applicant proposes to provide, through
Bank, an alternative source of specialized banking
needs. Therefore, considerations relating to con­
venience and needs lend some weight toward
approval. It is the Board’s judgment that the pro­
posed 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 consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after
the date of this Order, unless such period is ex­
tended 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, March 3,
1972.
Voting for this action: Vice Chairman Robertson and Gov­
ernors Daane, Brimmer, and Sheehan. Absent and not voting:
Chairman Burns and Governors Mitchell and Maisel.

[s e

a l

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

FIRST AMERICAN NATIONAL
CORPORATION, NASHVILLE, TENNESSEE
O

rder

A

p p r o v in g

A

c q u is it io n

o f

B

an ks

First American National Corporation, Nash­
ville, Tennessee, has filed separate applications
for the Board’s approval under § 3(a)(3) of the
Bank Holding Company Act (12 U .S.C . 1842(a)
(3)) to acquire 80 per cent or more of the voting
shares of (1) Farmers Exchange Bank, Union City,
Tennessee (“ Farmers Bank” ), and (2) UnionPeoples Bank, Clinton, Tennessee (“ Peoples
Bank” ).
Notice of receipt of the applications has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
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)).
On the basis of the record, the applications are
approved for the reasons set forth in the Board’s
Statement of this date. The transactions shall

402

FEDERAL RESERVE BULLETIN □ APRIL 1972

not be consummated (a) before the thirtieth
calendar day following the date of this Order or
(b) later than three months after the 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, March 3,
1972.

market controlling 17.2 per cent of commercial
bank deposits in that market. Applicant’s only
banking subsidiary is located in Nashville, approx­
imately 160 miles west of Peoples Bank and 155
miles southeast of Farmers Bank. No competition
exists between Peoples Bank and Farmers Bank
and between either of these banks and Applicant’s
present banking subsidiary. Thus, consummation
of the proposed acquisitions would have no ad­
verse effects on existing competition. Further­
more, in view of the distances separating these
banks, the presence of numerous intervening
banks, and the State’s restrictive branching law,
it appears unlikely that any competition would
develop in the future.
The present financial and managerial resources
and prospects of Applicant, its subsidiary bank and
both Peoples and Farmers banks are regarded as
satisfactory and consistent with approval. Al­
though there is no evidence that significant banking
needs of the communities involved are going un­
served, consummation of the proposed acquisi­
tions will enable both peoples and Farmers banks
to draw upon the added financial, managerial and
technical resources of Applicant in order to expand
existing services and initiate new services to meet
the future needs of their respective communities.
Convenience and needs considerations are therefore
consistent with approval. It is the Board’s judg­
ment that the proposed transactions would be in
the public interest and that the applications should
be approved.

Voting for this action: Vice Chairman Robertson and Gov­
ernors Daane, Brimmer, and Sheehan. Absent and not voting:
Chairman Burns and Governors Mitchell and Maisel.

[s e a

l

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

S

ta tem en t

First American National Corporation, Nash­
ville, Tennessee, 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)
Farmers Exchange Bank, Union City, Tennessee
(“ Farmers Bank” ) and, (2) Union-Peoples Bank,
Clinton, Tennessee (“ Peoples Bank” ).
Notice of receipt of the applications has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
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 finds that:
Applicant, a registered one bank holding com­
pany by virtue of its ownership of First American
National Bank of Nashville, Nashville, Tennessee
($631.2 million in deposits), representing 8.1 per
cent of total commercial bank deposits in the State,
is the third largest banking organization in Ten­
nessee. (All banking data are as of June 30, 1971,
and reflect holding company formations and
acquisitions approved through January 31, 1972.)
Acquisition of Peoples Bank (deposits of $28.8
million) and Farmers Bank (deposits of $13.6
million) would increase Applicant’s share of
deposits in the State by approximately .6 percent­
age points and its present ranking would remain
unchanged. Consummation of the proposed trans­
actions would have no significant effect upon
concentration of banking resources in the State.
Peoples Bank is the ninth largest of twelve
banks in the Knoxville banking market con­
trolling 3.8 per cent of commercial bank deposits
in that market. Farmers Bank is the second
largest of ten banks in the Union City banking




AMERICAN BANCORPORATION,
COLUMBUS, OHIO
O

rd er

A

p p r o v in g

A

c q u is it io n

o f

B

an k

American Bancorporation, Columbus, Ohio, 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 up to 100 per
cent (less directors’ qualifying shares) of the
voting shares of The Dime Bank, Marietta, Ohio
(“ Bank” ), the successor by acquisition of assets
and assumption of liabilities to The Dime Savings
Society of Marietta, Marietta, Ohio.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:

403

LAW DEPARTMENT

Applicant, the smallest multi-bank holding com ­
pany in Ohio, controls three banks with aggregate
deposits of $ 11.4 million, representing .05 per cent
of O hio’s commercial bank deposits. Applicant’s
acquisition of Bank, with deposits of $4.8 million,
representing .02 per cent of total State deposits,
would not change its present rank or increase
significantly the concentration of banking re­
sources in any area. (All banking data are as of June
30, 1971, and reflect formations and acquisitions
approved through January 31, 1972.)
The nearest subsidiary of Applicant and Bank
are 68 miles apart and two counties separate them.
There is no present competition between any of
Applicant’s subsidiaries and Bank, and it appears
that future competition is not likely to develop
between them due to the distances involved, the
location of numerous banking offices of other
banks in the intervening area, and O hio’s restric­
tive branching laws. Bank would rank as the
smallest of the four commercial banks head­
quartered in M arietta and rank fifteenth among the
17 banks operating in its market area. One result
of the proposed transaction will be to introduce
an additional commercial bank to that area which
could serve to stimulate competition in Marietta
and its surroundings. The proposed transaction
should have no adverse effect on competing banks.
The financial and managerial resources of Appli­
cant are generally satisfactory and prospects for
the group appear favorable. Prospects for Bank
also appear favorable since Applicant proposes
to supply needed capital and management to it.
Banking factors, therefore, lend weight toward
approval of the application. Although the major
banking needs of the residents of the MariettaParkersburg area are being met at present, the es­
tablishment of Bank will enable Applicant to offer
a wider range of services to banking customers of
its predecessor. Considerations relating to the
convenience and needs of the area, therefore, lend
weight to approval of the application. It is the
Board’s judgment that consummation of the pro­
posed 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 consummated (a) before
the thirtieth calendar day following the date
of this Order or (b) later than three months after
the 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
delegated authority.




By order of the Board of Governors, March 3 ,
1972.
Voting for this action: Vice Chairman Robertson and Gov­
ernors Daane, Brimmer, and Sheehan. Absent and not voting:
Chairman Burns and Governors Mitchell and Maisel.

[s e

a l

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

THE BANK OF NEW YORK COMPANY, INC.,
NEW YORK, NEW YORK
O

rd er

A

p p r o v in g

A

c q u is it io n

o f

B

a n k

The Bank of New York Company, Inc., New
York, New York, 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 100 per cent of the voting shares of the
successor to Valley National Bank of Long
Island, Valley Stream, New York (“ Bank” ).
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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 finds that:
Applicant, the seventh largest bank holding com ­
pany and the tenth largest banking organization in
New York, has seven subsidiary banks with total
deposits of $2.5 billion, representing approxi­
mately 2.7 per cent of the total commercial bank
deposits in the State. (Unless otherwise noted,
all banking data are as of June 30, 1971, adjusted
to reflect holding company formations approved
by the Board through October 29, 1971.) Acquisi­
tion of Bank ($158.7 million in deposits) would
increase Applicant’s share of deposits in the State
by less than 0.1 per cent.
Bank is the third largest of eight banks headquarted in Nassau County, which is part of the
Metropolitan New York banking market, and
operates ten offices in that area. Bank also
operates twelve offices in Suffolk County. Bank
holds $84 million in deposits in the New York bank­
ing market where it is the 34th largest of 74 banking
organizations, controlling 0.1 per cent of market
deposits.1
Applicant’s nearest banking subsidiary is 16
miles from the closest branch of Bank. Neither
M a r k e t data are as of June 3 0 ,1 9 7 0 .

404

FEDERAL RESERVE BULLETIN □ APRIL 1972

Applicant’s subsidiary banks, nor Bank derive a
significant amount of business from each other’s
service area. Accordingly, consummation of this
proposal would not adversely affect existing com­
petition.
Some potential competition between Applicant
and Bank might be foreclosed upon consummation
of the proposal, since Applicant could enter
Bank’s service area by expanding de novo or
through acquisition of a smaller bank. De novo
entry seems undesirable since State law limits a
de novo expansion bank to two branches per
year (beginning one year from the date of charter)
until 1976 when State-wide branching becomes
effective. It also appears unlikely that acquisition
of a smaller bank would be attractive to Applicant.
Three of the State’s largest banking organizations
are already represented in Bank’s service areas
and Applicant has not attained a significant com­
petitive position with respect to these larger bank­
ing organizations in other banking districts in the
State. Applicant seeks to acquire Bank in order
to rapidly become an effective competitor of the
larger banking organizations in Bank’s service
areas. Although consummation of this proposal
may have a slightly adverse effect on potential
competition, it will be offset by the increased
competition among the large banking organiza­
tions present in Bank’s service areas.
The financial and managerial resources of
Applicant, its subsidiary banks and Bank are satis­
factory and consistent with approval. While it
appears that the communities involved in this
proposal presently have reasonable access to
alternative sources of banking services, A pplicant’s
entry will afford an additional competing source
of such services. Through Bank, Applicant pro­
poses to offer lower rates on certain consumer
loans, data processing facilities for customers and
expanded trust services. Considerations related to
convenience and needs, therefore, lend weight
toward approval. It is the Board’s judgment that
the proposed 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 consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after the
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, March 7,
1972.




Voting for this action: Governors Mitchell, Daane, Maisel,
and Sheehan. Voting against this action: Governors Robertson
and Brimmer. Absent and not voting: Chairman Burns.
(S ig n e d )T y n a n Sm it h ,

Secretary of the Board.

[s e a l ]

D is s e n tin g S ta te m e n t
o f

G o verno rs R o bertso n

and

B r im m e r

We would deny this application because its anti­
competitive effects are not affirmatively out­
weighed by other public interest considerations.
Applicant appears to be a likely entrant into the
Nassau-Suffolk County area, and its entry could be
accomplished in a more competitive manner. Ap­
plicant could enter de novo or through acquisition
of one of the fourteen banks in the area smaller than
Valley National Bank. Approval of this applica­
tion would result in New York City-based holding
companies controlling ten of the fourteen area
banks with deposits over $150 million, and only
three independent banks of this deposit size would
remain in the area. As we have indicated pre­
viously, acquisition of a major bank in this area by
a major New York City-based holding company
eliminates such bank as a vehicle for entry by a
newer and smaller New York holding company
(e.g., In the Matter of the Application of Chemical
New York Corporation to acquire Eastern Na­
tional Bank of Long Island). We also pointed out
in that case that de novo entry to the area was
feasible for large New York holding companies
as the two largest New York City-based holding
companies had recently employed that method.
Therefore, approval of this application will have
serious adverse effects on potential competition.
The Bank Holding Company Act requires the
Board to deny holding company acquisitions that
are anticompetitive in nature unless there are
positive benefits to the public that outweigh the
adverse factor.
Applicant proposes to make additional services
available through Bank. However, the record in­
dicates that the banking needs of the communities
involved are already being adequately served by
the banking institutions in the area. Moreover, the
proposed benefits could be provided in a more
competitive fashion. Therefore, the benefits ad­
vanced by Applicant do not overcome the anti­
competitive effects of the acquisition.
We would deny the application.

LAW DEPARTMENT

405

COUNTY NATIONAL BANCORPORATION,
CLAYTON, MISSOURI
O

rder

A

p p r o v in g

A

c q u is it io n

o f

B

a n k

County National Bancorporation, Clayton, M is­
souri, has applied for the Board’s approval under
§ 3(a)(3) of the Bank Holding Company Act (12
U .S.C . 1842(a)(3)) to acquire not less than 90 per
cent of the voting shares of Big Bend Bank,
Webster Groves, Missouri (“ Bank” ).
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and
the time for filing comments and views has
expired. 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)).
On the basis of the record, the application is
approved for the reasons set forth in the Board’s
Statement of this date, provided that the trans­
action shall not be consummated (a) before the
thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order, unless such period is extended for
good cause by the Board, or by the Federal Re­
serve Bank of St. Louis pursuant to delegated
authority, and provided further that upon con­
summation of the proposed transaction, Applicant
shall not retain or acquire any nonbank shares or
engage in any nonbanking activities to a greater
extent or for a longer period than would apply in the
case of a bank holding company which became such
on the date of such consummation, except to the
extent otherwise permitted in any regulation of the
Board hereafter adopted specifically relating to the
effect of the acquisition of an additional bank on
the status of nonbank shares and activities of a
one-bank holding company formed prior to 1971,
or unless the Board fails to adopt any such regula­
tion before the expiration of two years after the
consummation of the proposed acquisition.
By order of the Board of Governors, March 9,
1972.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, and Maisel. Voting against this action: Gov­
ernors Robertson, Brimmer, and Sheehan.

[s e

a l

(Signed) T y n a n S m i t h ,
Secretary ofthe Board.

]

S

t a tem en t

Nature o f transaction. County National Ban­
corporation, Clayton, Missouri, a registered bank
holding company, has applied to the Board of




Governors, pursuant to § 3(a)(3) of the Bank
Holding Company Act (12 U .S.C . 1842(a)(3)),
for prior approval of the acquisition of at least
90 per cent of the voting shares of Big Bend Bank,
Webster Groves, Missouri (“ Bank” ).
Statutory considerations. Applicant’s one sub­
sidiary bank, St. Louis County National Bank
($229.6 million deposits), which is located in
Clayton, is the largest bank in St. Louis County
and the fourth largest bank in the St. Louis bank­
ing market with about 4 per cent of market de­
posits. Upon consummation of the proposal
herein, Applicant’s share of commercial bank
deposits in the State would be increased insignifi­
cantly by .1 per cent to 2.1 per cent, while its
ranking as the State’s eight largest banking or­
ganization would remain the same. (All banking
data are as of December 31, 1970.)
Bank ($20.6 million deposits) is located in
Webster Groves in St. Louis County, approxi­
mately 5.5 miles south of Applicant’s lead bank,
and is the 52nd largest of the banking organiza­
tions operating in the St. Louis banking market.
Within Bank’s primary service area (approxi­
mated by the communities of Brentwood, Crestwood, Kirkwood, M aplewood, Affton, and
Webster Groves), Bank ranks as the smallest
of seven banks in the area, three of which are
subsidiaries of multibank holding companies
significantly larger than Applicant. Bank holds
about 10 per cent of the commercial bank de­
posits in its service area.
In connection with its review of the proposal,
the Board has considered comments filed by the
Department of Justice indicating that the overall
effect of the proposal on competition would be
significantly adverse. The Department indicates
that significant existing competition between Ap­
plicant’s present subsidiary and Bank would be
eliminated by the proposal; that the acquisition
would further raise the concentration of deposits
in an already concentrated area; and that the
acquisition would have an adverse effect on po­
tential competition by removing Applicant as a
de novo entrant into the W ebster Groves area and
by eliminating Bank as a vehicle for entry by
other holding companies not already operating in
the area.
The Board does not consider the elimination
of the competition existing between Applicant’s
present subsidiary bank and Bank to be such as
to warrent denial of the proposal. While there is
some competitive overlap between the two banks,
the banks are not, in fact, significant competitors.

406

Bank is primarily retail oriented, serving princi­
pally as a savings institution with emphasis on
consumer and installment type loans. St. Louis
County National is primarily commercial oriented,
with emphasis on commercial loans and business
accounts. Although there is some existing com ­
petition between the banks arising from the
proximity of their locations, because of the na­
ture of the institutions and type of customers
each serves, the Board does not consider the
anticompetitive effects to be substantial. Further­
more, when viewed in the context of the St.
Louis banking market, the quantum of existing
competition which would be eliminated by the
proposed transaction is not significant.
Bank presently competes with banks which
include subsidiaries of holding companies which
are the third, fourth, and fifth largest banking
organizations in the State, holding, respectively,
approximately 8, 4.5, and 4 per cent of the com ­
mercial bank deposits in the State. Even after
this acquisition, Applicant would control only
slightly more than 2 per cent of the deposits in
the State. In the St. Louis banking market, Ap­
plicant’s present subsidiary holds 4.0 per cent of
the deposits, and Bank holds .4 per cent of such
deposits. Thus consummation of the proposed
acquisition would not eliminate a significant de­
gree of competition in the relevant market, and
viewed in the context of the impact on competi­
tion in the market, the elimination of any future
competition between Applicant’s subsidiary and
Bank is not regarded as substantial. On the con­
trary, consummation of the proposed transaction
should enable Bank to compete more effectively
in the relevant market and result in a salutary effect
on competition.
On the basis of the foregoing, the Board con­
cludes that the competitive effects of the pro­
posal are not inconsistent with approval of the
application, and for the reasons discussed here­
inafter, any elimination of existing competition
that may result is more than outweighed by the
benefits that would result from the proposal.
The financial condition and management of the
Applicant and its subsidiary are regarded as satis­
factory and consistent with approval. Bank has
experienced some losses in its installment loan
operations and does have a management succes­
sion problem. Applicant plans to supply addi­
tional capital to Bank and to provide Bank with
management personnel. As a subsidiary of Ap­
plicant, therefore, Bank’s prospects appear to be
favorable, and considerations relating to bank­




FEDERAL RESERVE BULLETIN □ APRIL 1972

ing factors lend weight toward approval of the
application.
The present banking needs of the Webster
Groves area are being met by the existing in­
stitutions. However, the area is experiencing
growth, and Bank’s ability to offer a broader
range of service as a subsidiary of Applicant
should benefit the convenience and needs of the
residents of Bank’s service area. Applicant in­
tends to assist Banking in developing com­
mercial and industrial business, processing mort­
gage loans, and providing data processing serv­
ices. As a subsidiary of Applicant, Bank should
be able to compete more effectively with the
other larger banks which are already offering
these services either independently or as a sub­
sidiary of a holding company. These considera­
tions lend strong weight toward approval of the
application.
Summary and conclusion. On the basis of all
relevant facts contained in the record and in light
of the factors set forth in § 3(c) of the Act, it is
the Board’s judgment that the proposed trans­
action is in the public interest and that the ap­
plication should be approved.
D

is s e n t in g

R

o b e r t so n

S

t a t em en t

, B

r im m e r

,

o f

G

a n d

o v ern o rs

S

h e e h a n

We disagree with the conclusion of the majority
that the proposal would produce benefits to the
communities to be served that outweigh the ad­
verse effects the proposal would have on com­
petition. We agree with the conclusion expressed
by the Department of Justice, that consummation
of the proposal would have a “ significantly ad­
verse” effect on competition, and therefore,
we would deny the application.
Applicant’s present subsidiary is the fourth
largest banking organization and the most signifi­
cant competitive force in St. Louis County, one
of the fastest growing areas in Missouri. Bank
is located only 5.5 miles to the south of Applicant’s
subsidiary. This geographical proximity, coupled
with the interdependence of the communities in
the area, leads to the conclusion that the two
banks are competitors. This conclusion is sup­
ported by the facts of record which reveal that
each bank draws substantial deposit and loan
business from the immediate area of the other.
On the basis of dollar amounts, Applicant de­
rives almost as much in deposits (83.9 per cent)
and about twice as much in loans (200.5 per cent)
as Bank itself derives from its own service area.
This, in our view, is substantial competition.

LAW DEPARTMENT

Furthermore, the banks offer a similar range of
services and are alternative sources of banking
facilities for banking customers in the area. This
competition would be foreclosed by consum­
mation of the proposed transaction.
Because of its size and its location in the com ­
mercial, financial, and political center of St.
Louis County, Applicant’s present subsidiary
is one of the area’s dominant banking organiza­
tions. As the Department of Justice noted, Ap­
plicant already controls approximately 32 per
cent of the deposits in east central St. Louis
County, and the present proposal would increase
that concentraion to about 35 per cent of such
deposits. In concluding that the competitive ef­
fects of the proposed transaction should be as­
sessed in the east central St. Louis County area,
rather than in the entire St. Louis metropolitan
area, as has the majority, we have been guided by
recent decisions of the Supreme Court. In U.S. v.
Philadelphia Nat. Bank, 374 U.S. 321, 357, in
arriving at a determination of the proper relevant
market in that case, the court stated:
The proper question to be asked in this case is not where the
parties to the merger do business or even where they compete,
but where, within the area of competitive overlap, the effect
of the merger on competition will be direct and immediate. . . .
This depends upon “ the geographic structure of suppliercustomer relations.” . . . In banking, as in most service
industries, convenience of location is essential to effective
competition. Individuals and corporations typically confer
the bulk of their patronage on banks in their local community;
they find it impractical to conduct their banking business at a
distance. . . .

More recently in U.S. v. Phillipsburg National
Bank, 399 U.S. 350, 362, the court stated, in
discussing the relevant market question, that:
Commercial realities in the banking industry make clear that
banks generally have a very localized business. We observed
in Philadelphia B ank, supra, at 358, that “ [i]n banking, as
in most service industries, convenience of location is essential
to effective competition. Individuals and corporations typically
confer the bulk of their patronage on banks in their local com­
munities; they find it impractical to conduct their banking busi­
ness at a distance. . . . The factor of inconvenience localizes
banking competition as effectively as high transportation costs
in other industries.” In locating “ the market area in which
the seller operates,” it is important to consider the places from
which it draws its business, the location of its offices, and
where it seeks business.

The already high level of concentration of bank­
ing resources in east St. Louis County would be
further enhanced by the proposed acquisition. This
is a matter of significant concern to us.
Of equal concern is A pplicant’s effort to expand
its influence in a portion of St. Louis County in
which it already competes. In light of the com ­
ments noted above, we believe it would be
preferable for Applicant to expand in east St.
Louis County either de novo or by acquiring a




407

bank in an area in which Applicant is not already
dominant. There is no doubt that Bank’s service
area would support another new bank; it is also
clear that Applicant possesses the financial re­
sources for meaningful de novo entry. From a
competitive standpoint, either of these alternatives
is clearly preferable to the proposal herein.
Furthermore, de novo entry would have the added
beneficial effect of providing an additional source
of banking services rather than removing Bank
as an alternative source for such services for the
residents of Bank’s service area.
On the basis of the record, we would conclude
that Applicant’s proposal would have a significantly
adverse effect on existing and potential com ­
petition. In light of this situation, the Bank Hold­
ing Company Act specifically requires that the
Board deny the application unless it finds benefits
in terms of convenience and needs that out­
weigh the significantly adverse effects on com­
petition. The majority points to no new services
which Applicant is not already offering in Bank’s
service area. The alleged benefits that the m a­
jority indicates would flow from the proposal
are not such as would outweigh the significantly
adverse effects on competition. Accordingly, the
statutory requirement of a clear outweighing of
anticompetitive effects is not fulfilled.
We would, therefore, deny the application.
FIRST AT ORLANDO CORPORATION,
ORLANDO, FLA.
O

rd er

A

p p r o v in g

A

c q u is it io n

o f

B

a n k s

First at Orlando Corporation, Orlando, Florida,
a bank holding company within the meaning of the
Bank Holding Company Act, has filed separate
applications for the Board’s approval, under § 3(a)
(3) of the Act (12 U .S.C . 1842(a)(3)), to acquire
90 per cent or more of the voting shares of each
of the following banks in Florida: Riverside Bank,
Miami; Midtown Bank of M iami, Miami (“ M id­
town Bank” ); and Bank of Coral Gables, Incor­
porated, Coral Gables (“ Coral Gables Bank” ).
Notices of receipt of the applications have been
given in accordance with § 3(b) of the Act, and the
times for filing comments and views have expired.
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
finds that:
Applicant controls 22 banks with aggregate de­
posits of approximately $693 million, repre­
senting 4.7 per cent of the total commercial bank

408

FEDERAL RESERVE BULLETIN □ APRIL 1972

deposits in the State and is the fifth largest banking
organization and bank holding company in Flor­
ida. (All banking data are as of June 30, 1971, and
represent all holding company formations and
acquisitions approved through February 29, 1972.)
The acquisition of Riverside Bank ($57.4 million
in deposits), Midtown Bank ($16.9 million in
deposits), and Coral Gables Bank ($9.5 million
in deposits) would increase Applicant’s share of
commercial bank deposits in Florida by 0.6 per­
centage points, and Applicant would become the
fourth largest banking organization in the State.
Riverside Bank, Midtown Bank, and Coral
Gables Bank serve the Miami banking market
which is defined by the boundaries of Dade County.
Consummation of the subject proposal would rep­
resent Applicant’s first entry into the Miami bank­
ing market which has 70 competing banks, with
aggregate deposits of $3.4 billion, representing 41
banking organizations. The largest bank holding
company in the State holds over 27 per cent of the
total deposits in the Miami banking market, where­
as the three subject banks collectively hold 2.5
per cent of total commercial bank deposits in that
market and represent the m arket’s tenth largest
banking organization. It appears that the affiliation
of subject banks with Applicant would increase
their ability to compete in the highly competitive
Miami banking market without adversely affecting
any of the competing banks.
Riverside Bank’s officers and directors organized
Midtown Bank in 1963 and Coral Gables in 1969.
The percentage of common ownership among the
three banks is slightly higher at the present time
than at the times the banks were organized; 77 per
cent of the shareholders of Riverside Bank own
82 per cent of the stock of Midtown Bank; and 75
per cent of the shareholders of Riverside Bank
own 70 per cent of the stock of Coral Gables
Bank. The banks are also closely associated
through their officers and directors, and their per­
sonnel have been interchanged from time to time.
It appears that the close management and share­
holder affiliations have resulted in an absence of
any significant present competition between or
among the three proposed subsidiaries in spite of
an overlap of the banks’ service areas. Dis­
affiliation of the three banks is considered unlikely,
and it appears that no significant potential com­
petition between or among them would be fore­
closed by the proposed acquisitions.
Applicant’s subsidiary bank closest to Dade
County is located 120 miles to the north, and Ap­
plicant’s main offices in Orlando are located 230

miles north of Dade County. It appears that there
is no meaningful present competition by any of the
banks in Applicant’s group with any of the three
proposed subsidiary banks; and that, on the facts
of record, particularly in view of the distances
separating the banks, no significant amount of po­
tential competition between any subsidiary of Ap­
plicant and any one of the proposed subsidiaries
would be eliminated by consummation of the pro­
posal. On the basis of the record before it, the
Board concludes that consummation of the pro­
posed acquisitions would not have a significantly
adverse effect on competition in any relevant area.
Applicant, its subsidiary banks, and the three
banks Applicant proposes to acquire are considered
to be in satisfactory financial condition, their
managements are deemed to be capable, and their
prospects appear favorable. Banking factors are
regarded as consistent with approval of the ap­
plications.
It appears that the banking needs of the relevant
areas are being adequately served by present bank­
ing facilities operating in the Miami banking mar­
ket. However, Applicant states that it plans to
provide new services for each of the three subject
banks which will include trust, international, and
credit card services. The provision of additional
sources for such services should be of benefit to
the community involved. Considerations under
convenience and needs aspects of the proposal are
consistent with approval and lend some slight
weight thereto. It is the Board’s judgment that
consummation of the proposed acquisitions would
be in the public interest and that the applications
should be approved.
On the basis of the record, each of the three
subject applications is approved for the reasons
summarized above. None of said transactions
shall be consummated (a) before the thirtieth
calendar day following the date of this Order or (b)
later than three months after the 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, March 16,
1972.




Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.
( S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary of the Board.

O r d e r A p p r o v in g A c q u is it io n

of

B ank

First at Orlando Corporation, Orlando, Florida,
a bank holding company within the meaning of the

LAW DEPARTMENT

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 100 per cent of the
voting shares (less directors’ qualifying shares) of
First National Bank of Palm Bay, Palm Bay,
Florida (“ Bank” ), a proposed new bank.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant, the fifth largest bank holding com­
pany in Florida on the basis of deposits, controls
23 banks with aggregate deposits of approximately
$711 million, representing 4.8 per cent of the
total commercial bank deposits in the State. (Bank­
ing data are as of June 30, 1971, and reflect hold­
ing company formations and acquisitions approved
through February 29, 1972.) A pplicant’s acquisi­
tion of Bank, a proposed new bank, would not in­
crease the concentration of banking resources nor
have any significant adverse effect on any com­
peting bank, in any relevant area.
Applicant’s office closest to Bank’s proposed
site in Palm Bay is the Melbourne subsidiary
located 3.2 miles to the north of the site. Each of
Applicant’s other subsidiaries is located at least
24 miles from Bank and derives little if any busi­
ness from Bank’s proposed service area. The
relevant market, which is the southern portion of
Brevard County, encompasses M elbourne, a por­
tion of W est Melbourne, all of the City of Palm
Bay, and the communities of Grant, Valkaria and
M icco, as well as other unincorporated areas of
South Brevard County. A pplicant’s Melbourne
subsidiary is the second largest bank in this
market, and controls approximately 16 per cent of
the total commercial bank deposits in that market.
The m arket’s largest bank holds approximately
31 per cent of total deposits in the area and is located
between Bank and A pplicant’s Melbourne sub­
sidiary. No present competition exists between
Bank, a proposed new bank, and any of Applicant’s
subsidiaries; and it appears that Applicant’s
acquisition of Bank would not substantially lessen
future competition in the market area nor raise any
significant barrier to entry by others into the area.
The financial and managerial resources of Ap­
plicant and its subsidiary banks are regarded as
satisfactory and prospects for the group appear
favorable. Bank has no financial or operating
history. However, as a subsidiary of Applicant,




409

Bank’s prospects appear favorable. Banking fac­
tors are consistent with approval of the application.
The major banking needs of the area appear to be
presently satisfied by existing banking facilities.
However, Bank will provide a convenient alter­
native source of banking to the area. Considera­
tions relating to the convenience and needs of the
community are consistent with approval of the
application and lend some weight thereto. It is the
Board’s judgment that consummation of the pro­
posed 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 consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order; and (c) First National Bank of Palm
Bay, Palm Bay, Florida, shall be opened for
business not later than six months after the date of
this Order. Each of the periods described in (b) and
(c) may be extended for good cause by the Board,
or by the Federal Reserve Bank of Atlanta pursu­
ant to delegated authority.
By order of the Board of Governors, March 16,
1972.
Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.
( S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary of the Board.

MIDLANTIC BANKS INC.,
NEW ARK, NEW JERSEY
O r d e r A p p r o v in g A c q u is it io n

of

B ank

Midlantic Banks Inc., Newark, New Jersey,
has applied for the Board’s approval under § 3(a)
(3) of the Bank Holding Company Act (12 U.S.C.
1842(a)(3)) to acquire 100 per cent (less directors’
qualifying shares) of the voting shares of M id­
lantic National Bank, Parsippany-Troy Hills, New
Jersey (“ Bank” ), a proposed new bank.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant controls five banks with aggregate
deposits of about $783 million, representing 5 per
cent of the commercial bank deposits in New

410

FEDERAL RESERVE BULLETIN □ APRIL 1972

Jersey and is the third largest banking organiza­
tion in the State.1 Since bank is a proposed new
bank, no existing competition would be eliminated,
nor would concentration be increased in any rele­
vant area. Applicant presently operates two banks
in the Greater Newark M arket, which includes
Parsippany-Troy Hills, which together control
about 16.2 per cent of area deposits.2 However,
neither of these banks draws a significant amount
of deposits or loans from the proposed service
area of Bank. M oreover, there are two larger or­
ganizations in the Greater Newark Market than
Applicant so that Applicant does not dominate the
area. Additionally, approval of this application
should have procompetitive consequences since
Parsippany-Troy Hills is presently closed to
branching because of the home office provisions
of New Jersey law. The establishment of a de
novo institution such as Bank is an effective way
of providing competition in such closed areas. For
these reasons and other facts of record, the Board
concludes that consummation of the transaction
will not adversely affect competition in any rele­
vant area.
The financial and managerial resources and
future prospects of Applicant, its subsidiary banks,
and Bank are generally satisfactory and consis­
tent with approval of the application. Considera­
tions relating to the convenience of the community
to be served lend some weight to approval of the
application since the service area of Bank appears
to be relatively underbanked and would benefit
from an additional source of services. The Board
finds that the proposed application is in the public
interest and should be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order; and (c) Midlantic National Bank,
Parsippany-Troy Hills, New Jersey, shall be
opened for business not later than six months
after the date of this Order. Each of the periods
described in (b) and (c) may be 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, March 16,
1972.

Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.

b a n k in g data are as of June 30, 1971, and reflect holding com pany
form ations and acquisitions approved by the Board through February 29,
1972.
2The G reater N ew ark M arket consists of all of Essex County and parts
of U nion, H udson, and M orris Counties.




(S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary of the Board.

FLORIDA COMMERCIAL BANKS, INC.,
M IAM I, FLORIDA
O r d e r A p p r o v in g A c q u is it io n

of

B ank

Florida Commercial Banks, Inc., Miami,
Florida, a bank holding company within the mean­
ing of the Bank Holding Company Act, has ap­
plied 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 Florida Com­
mercial Bank of Hollywood, Hollywood, Florida
(“ Bank” ), a proposed new bank.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant controls five banks with aggregate
deposits of approximately $188 million, repre­
senting 1.3 per cent of the commercial bank de­
posits in Florida, and is the sixteenth largest bank­
ing organization and bank holding company in
the State. (All banking data are as of June 30,
1971, and reflect holding company formations and
acquisitions through February 29, 1972.) Acquisi­
tion of Bank will not increase the percentage of
deposits held by Applicant since Bank is a proposed
new bank. The proposal would not eliminate
existing competition nor significantly increase the
concentration of banking resources in any relevant
area.
The proposed site of Bank is in the western sec­
tion of the City of Hollywood. The relevant bank­
ing market is the Hollywood metropolitan area.
Bank would compete in this market with 12 banks,
six of which are subsidiaries of three multi-bank
holding companies, controlling approximately 47
per cent of the total commercial bank deposits
in that market. Each of Applicant’s five subsidiary
banks is located outside the Hollywood metro­
politan area, and the subsidiary nearest to Bank’s
proposed site is located in Miami, approximately
14 miles south of Bank’s site. On the facts of record
and particularly in view of the density of popula­
tion and the number of banking offices located in
the intervening areas, it appears that consumma­

411

LAW DEPARTMENT

tion of the proposal would not foreclose any sig­
nificant amount of future competition between
Bank and any of Applicant’s present subsidiaries.
On the basis of the record before it, the Board
concludes that consummation of the proposed
acquisition would not have a significant adverse
effect on competition in any relevant area, nor
have a significant adverse effect on any of the
area’s competing banks.
The financial and managerial resources of Ap­
plicant and its subsidiary banks are deemed sat­
isfactory, and projected growth and earnings for
the group appear favorable. Bank, as a proposed
new bank, has no financial or operating history;
however, its prospects under Applicant’s m an­
agement appear favorable. Banking factors as they
concern Applicant’s group and the proposed new
bank are consistent with approval of the applica­
tion. It appears that the major banking needs of the
area are being adequately served at the present
time. However, Bank would provide an additional
source of convenient banking services to the area.
Considerations under convenience and needs
aspects of the proposal are consistent with approval
and lend some weight thereto. It is the Board’s
judgment that consummation of 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 consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order; and (c) Florida Commercial Bank
of Hollywood, Hollywood, Florida, shall be
opened for business not later than six months
after the date of this Order. Each of the periods
described in (b) and (c) may be 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, March 16,
1972.
Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.

[s e

a l

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

BELLEVILLE BANCSHARES, INC.,
BELLEVILLE, ILLINOIS
O

rder

A

p p r o v in g

H

o l d in g

F

o r m a t io n

C

o f

B

an k

o m pa n y

Belleville Bancshares, Inc., Belleville, Illinois,
has applied for the Board’s approval under § 3(a)




(1) of the Bank Holding Company Act (12 U.S.XT.
1842(a)(1)) of formation of a bank holding com­
pany through acquisition of 51 per cent of the vot­
ing shares of Bank of Belleville, Belleville,
Illinois (“ Bank” ).
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Bank ($20.7 million in deposits) is the fourth
largest of six banks competing in the Belleville
market area and holds 8.1 per cent of the deposits
in commercial banks in the area.1 Applicant is a
newly organized corporation formed by members
of a family for the purpose of effecting a reorgan­
ization of their individual ownership of Bank’s
shares. Members of this family also control the
smallest bank in the area ($7.9 million in de­
posits) and consummation of the proposal would
tend to perpetuate the fam ily’s control of two banks
and 11.2 per cent of area deposits. This would be
an adverse circumstance were it not for the fact
that Bank was acquired in early 1971 at a time
when it was in very serious financial condition,
and under the fam ily’s management it has shown
a marked improvement, as discussed below. Under
these circumstances, the Board does not believe
that the anticompetitive effects of the proposal are
significant.
As noted above, Bank’s financial condition was
marginal when the family acquired Bank. Since
that time, Bank’s capital position has been sig­
nificantly improved, loan losses have been m ini­
mized, and qualified management has been brought
into the Bank. Since the present proposal 'will
continue this support for Bank, considerations re­
lating to the financial and managerial resources and
prospects of Bank lend weight toward approval
of the application. Consummation of the proposal
would have no immediate effect on the convenience
and needs of the community involved; however,
the original acquisition of the Bank, at a time when
it was experiencing financial difficulties, was in­
strumental in the continuation of Bank as a viable
competitive force in the area and, as a subsidiary
of Applicant, Bank should be able to continue to
offer a wide range of banking services. Thus, con­
siderations relating to the convenience and needs
lend weight toward approval. It is the Board’s
*A11 banking data are as of June 30, 1971.

412

FEDERAL RESERVE BULLETIN □ APRIL 1972

judgment that consummation of the proposal 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 consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order, unless such period is extended for
good cause by the Board, or by the Federal Re­
serve Bank of St. Louis pursuant to delegated
authority.
By order of the Board of Governors, March 16,
1972.

Because Bank had not been chartered at the time of
Palmer Bank Corporation’s application to become a
bank holding company it was not included within
that application. Nevertheless, Bank was organized
by principals of Applicant with the intention of
including it in the holding company. (It should be
noted, however, that Applicant does not directly
or indirectly own any shares of Bank.) As such,
this application essentially involves the establish­
ment of a de novo institution by Applicant. In the
light of the above facts, although all of Applicant’s
subsidiary banks are located within seven miles
of Bank, it does not appear that there is any actual
or potential competition between Applicant and
Bank. Neither does it appear that consummation of
the proposal would confer a position of market
dominance to Applicant to the detriment of com ­
peting banks. Competitive considerations are,
thus, regarded as consistent with approval.
The financial and managerial resources and
future prospects of Applicant, its subsidiary banks,
and Bank, appear to be generally satisfactory and
are consistent with approval. However, Bank has
been and will continue to be dependent upon Ap­
plicant for support. Bank is located in a growing
suburban area two miles from the nearest banking
office and 5.5 miles from Applicant’s lead bank
and closest subsidiary. Bank is providing area
residents with a convenient source of full-service
banking. Direct affiliation with Applicant assures
Bank of A pplicant’s continuing support. Thus,
considerations related to financial and managerial
resources and the needs of the community in­
volved lend some weight toward approval. 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 consummated (a) before
the thirtieth calendar day following the date of this
Order or (b) later than three months after the date
of this Order, unless such period is extended for
good cause by the Board, or by the Federal R e­
serve Bank of Atlanta pursuant to delegated author­
ity.
By order of the Board of Governors, March 16,
1972.

Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.
( S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary o f the Board.

PALMER BANK CORPORATION,
SARASOTA, FLORIDA
O r d e r A p p r o v i n g A c q u i s it io n

of

B ank

Palmer Bank Corporation, Sarasota, 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 100 per cent (less
directors’ qualifying shares) of the voting shares of
Village Plaza Palmer National Bank, Sarasota
County, Florida (“ Bank” ).
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant has three subsidiary banks, all located
in the Sarasota area, with aggregate deposits of
$113.5 million representing. 1 per cent of total com­
mercial bank deposits within the State. (Banking
data are as of June 30, 1971, and reflect holding
company formations and acquisitions approved
through January 31, 1972.) Acquisition of Bank
which opened on September 29, 1971, would not
significantly increase A pplicant’s share of total
deposits within the State.
Applicant is the second largest of seven bank­
ing organizations in the relevant banking market
which is approximated by Sarasota and surround­
ing areas with 34.6 per cent of market deposits.




Voting for this action: Chairman Burns and Governors Rob­
ertson, Mitchell, Daane, and Brimmer. Absent and not voting:
Governors Maisel and Sheehan.

[s e a l ]

(Signed) T y n a n S m ith,
Secretary of the Board.

LAW DEPARTMENT

413

COLORADO NATIONAL BANKSHARES,
IN C., DENVER, COLORADO
O

rd er

A

p p r o v in g

A

c q u is it io n

o f

B

a n k

Colorado National Bankshares, Inc., Denver,
Colorado, 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 Boulevard
National Bank, Denver, Colorado (“ Bank” ).
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and
the time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant has seven subsidiary banks control­
ling aggregate deposits of $335 million and is the
third largest banking organization in Colorado
controlling 7.2 per cent of deposits in commercial
banks in the State.1 Acquisition of Bank ($13
million in deposits) by Applicant would not
increase the percentage share of deposits held
by Applicant to a significant extent and would
not alter its Statewide ranking.
Bank is located about four miles from down­
town Denver near the largest medical complex
in the Rocky Mountain region and the largest
suburban office building and retail shopping com­
plex in the Denver area. Bank, controlling .5 per
cent of market deposits, does primarily a local,
consumer oriented business with the majority of
its accounts being individual accounts of employ­
ees of the medical complex. Applicant presently
has five banking subsidiaries in the Denver area.
Four of these are small suburban banks whose
service areas do not overlap to any significant
extent with that of Bank. However, Applicant’s
lead bank, Colorado National Bank ($290 million
in deposits), is located in downtown Denver and
serves the entire Denver area. Despite these over­
lapping service areas, consummation of the pro­
posal would eliminate little competition between
the institutions involved. Colorado National Bank
specializes in providing corporate banking services
and Bank does not participate in this market to
any significant extent (it has none of the institu­
tional accounts from the medical center). It does
not appear likely that Bank would develop into

a competitor for Colorado National in this area.
Acquisition of Bank would add only one-half
percentage point to Applicant’s share of deposits
in the Denver banking market. The two larger
organizations’ share of market deposits would
be respectively 7.5 and 10 percentage points larger.
Additionally there would be 45 banking organiza­
tions remaining in the market, of which 26 are
larger than Bank. Consummation of the proposal
would have only a slightly adverse effect on present
and potential competition.
Considerations relating to the financial condition,
managerial resources and prospects of Applicant
and its subsidiary banks are satisfactory and con­
sistent with approval. B ank’s growth since its
establishment in 1963 has continually placed it
in the position of seeking capital funds to support
this growth. Affiliation with Applicant would
likely provide a source of capital to support con­
tinued growth of Bank. This consideration lends
some weight toward approval of the application.
It appears that the area served by Bank has reason­
able access to most banking services. However,
affiliation with Applicant will allow Bank to make
larger loans through a more ready access to partici­
pations and will provide a more convenient source
for more specialized banking needs. These con­
siderations lend weight toward approval of the
application. It is the Board’s judgment that con­
summation of 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 consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Kansas City pursuant to dele­
gated authority.
By order of the Board of Governors, March 16,
1972.
Voting for this action: Chairman Burns and Governors
Mitchell, Daane, and Sheehan. Voting against this action:
Governors Robertson and Brimmer. Absent and not voting:
Governor Maisel.

[s e a

l

D
G

b a n k i n g data are as of June 30, 1971, and reflect all holding com ­
pany form ations and acquisitions approved by the Board through
January 31, 1972.




(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

is s e n t in g

o v ern o rs

R

S

t a t em en t

o ber tso n

a n d

B

o f
r im m e r

The m ajority’s approval of this application
permits the third largest banking organization in

414

the Denver area to acquire a direct competitor in
that area. Applicant’s lead bank, Colorado Na­
tional, and Bank have overlapping service areas,
while two other subsidiaries of Applicant have
offices within five miles of Bank. Colorado N a­
tional alone derives 3 per cent of its demand de­
posits and 10 per cent of its time and savings de­
posits from Bank’s service area. Such figures
are, respectively, 67 per cent and 333 per cent of
the amount derived by Bank from the area. Con­
summation of the proposal would eliminate exist­
ing direct competition between the two institu­
tions and would have adverse effects. Additionally,
Applicant would have six banking subsidiaries
in the Denver area, two more than any other bank­
ing organization.
Against these actual substantial anticompetitive
effects, the majority weighs the probability that
affiliation with Applicant will give Bank a more
ready access to capital funds and thus enable it to
make larger loans. The majority asserts that affil­
iation with Applicant will enable Bank to service
large commercial accounts. There is no showing in
the record that any such accounts are going un­
served in the Denver area. Furthermore, whatever
need the Bank has for more capital funds has arisen
from Bank’s growth and the rapid expansion of
its deposits. Such growth in deposits makes it
likely that A pplicant’s subsidiaries and Bank
would be even more substantial competitors in
the future, absent the proposal. Consummation
of the proposal would therefore have an adverse
effect on potential competition.
The record in this case establishes beyond any
doubt that:
1. The proposed acquisition would have an ad­
verse effect on competition in the Denver metro­
politan area.
2. The acquisition would eliminate present
competition, and some possibly greater competition
in the future between Colorado National and Bank.
3. The Applicant would acquire an additional
bank in a market area in which it controls more
banking subsidiaries than any other holding com­
pany.
4. Consummation of the proposal would fore­
close an opportunity for possible entry into the
Denver banking market by other bank holding
companies or individuals.
5. The proposed acquisition would result in
only a slight improvement in convenience and
services— a convenience too slight to outweigh the
adverse effects on competition.
On the basis of this record, we think that, at a



FEDERAL RESERVE BULLETIN □ APRIL 1972

minimum, the majority should have required at
least some evidence that Bank’s capital problem
(which we think has been exaggerated) could not
be solved by some less anticompetitive alterna­
tive means. We find none. For ourselves, we would
be reluctant to permit any bank which had real
capital problems to be acquired by a holding com­
pany whose own capital structure includes a debt
to equity ratio of 78 per cent.
In the absence of any showing on the record
of public benefits which would outweigh the
adverse competitive effect of consummation of
the proposal, we believe the provisions of the
Bank Holding Company Act direct the Board to
deny the application, and hence we dissent from
the action taken.
W YOMING BANCORPORATION,
CHEYENNE, WYOMING
O

rd er

A

p p r o v in g

A

c q u is it io n

o f

B

an ks

Wyoming Bancorporation, Cheyenne, W yo­
ming, has applied for Board approval under
§ 3(a)(3) of the Bank Holding Company Act (12
U .S.C . 1842(a)(3)) to acquire 59.5 per cent or
more of the voting shares of The First National
Bank of Rawlins ( “ Rawlins Bank” ), Rawlins,
W yoming, 58.4 per cent or more of the voting
shares of The First National Bank of Lander
(“ Lander Bank” ), Lander, Wyoming, and 84
per cent or more of the voting shares of Stockmans
National Bank of Lusk (“ Lusk Bank” ), Lusk,
Wyoming.
Notice of receipt of the applications has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
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
finds that:
Applicant, the third largest banking organization
in W yoming, controls five banks with aggregate
deposits of $45.4 million, representing 5.4 per
cent of commercial bank deposits in the State.
(All banking data are as of June 30, 1971, and
reflect holding company formations and acquisi­
tions approved through February 29, 1972.) The
largest and second largest banking organizations
in Wyoming control 15 per cent and 8.9 per cent,
respectively, of the State’s total commercial bank
deposits. However, Applicant is the only multi­
bank holding company, at present, which is allowed
by law to acquire additional banking subsidiaries
in Wyoming. Rawlins Bank, Lander Bank, and

415

LAW DEPARTMENT

Lusk Bank control, respectively, $16.9, $12.4,
and $6.6 million of deposits. Upon consummation
of the proposal, Applicant would become the
second largest banking organization in the State,
holding 9.7 per cent of total deposits in Wyoming.
Rawlins Bank is the largest of the three banks
located in its service area, which is approximated
by Carbon County and a portion of Sweetwater
County, and holds 47.5 per cent of the total de­
posits in commercial banks in that area. Lander
Bank is the second largest of the five banks lo­
cated in its service area, approximated by Fremont
County. Lander Bank holds 24.5 per cent of the
total deposits in commercial banks in that area.
Lusk Bank is the fourth largest of the eight banks
located in its service area, holding 12.2 per cent
of the total deposits in commercial banks in that
area which is approximated by Niobrara County
and portions of Converse, Goshen, and Platte
Counties in W yoming, and a portion of Sioux
County in Nebraska.
No proposed subsidiary bank is closer than 126
miles to any other proposed subsidiary bank, and
none is closer than 90 miles to any of Applicant’s
present subsidiaries. There is no meaningful exist­
ing competition between the proposed subsidiary
banks, nor between any of Applicant’s present sub­
sidiaries and the proposed subsidiaries. It also
appears unlikely that consummation of this pro­
posal would preclude potential competition be­
cause of the distances involved, the number of
intervening banks, and W yom ing’s prohibition
against branch banking. Based on the foregoing,
and the record before it, the Board concludes that
consummation of the proposed transactions would
not have an adverse effect on competition in any
relevant market.
In 1970, Applicant acquired indirect control of
the three proposed subsidiary banks through
Enterprises Limited, a partnership comprised of
certain of A pplicant’s officers, directors, and
shareholders. Applicant has indicated that should
any of these applications be denied, the partner­
ship would sell the respective bank to independent
parties. However, strong competition exists in
each banking market of the proposed subsidiaries.
No significant adverse competitive effects would
result from consummation of the proposal. Ap­
proval of the application would formalize the
present relationship and perpetuate Applicant’s
assistance to the banks. Both Rawlins Bank and
Lander Bank have been assisted by Applicant in
resolving management and capital adequacy prob­
lems; approval of the application will enable Appli­




cant to give continued needed support to each
Bank.
Considerations relating to the financial and
managerial resources and future prospects of
Applicant and Lusk Bank are satisfactory. The
future prospects of Lander Bank and Rawlins
Bank are considered satisfactory. Convenience
and needs considerations lend support to approval
in that Applicant plans to initiate trust services
at Lusk Bank and Lander Bank and increase the
trust services at Rawlins Bank. In addition Appli­
cant intends to supply an overline source for large
agricultural transactions. These factors lend some
weight toward approval of the applications. It is
the Board’s judgment that consummation of the
proposed transactions would be in the public in­
terest, and that the applications should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above. The
transactions shall not be consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Kansas City pursuant to delegated
authority.
By order of the Board of Governors, March 23,
1972.
Voting for this action: Chairman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent
and not voting: Governor Mitchell.
(S ig n e d ) T y n a n S m i t h ,
[s e a l]

Secretary of the Board.
BANCOHIO CORPORATION,
COLUMBUS, OHIO

O r d e r A p p r o v in g A c q u is it io n

of

B ank

BancOhio Corporation, Columbus, Ohio, 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 100 per cent (less
directors’ qualifying shares) of the voting shares
of the successor by merger to The Central National
Bank at Cambridge, Cambridge, Ohio ( “ Bank” ).
The bank into which Bank is to be merged has
no significance except as a means of acquiring the
voting shares of Bank. Accordingly, the proposed
acquisition of the shares of the successor organi­
zation is treated herein as the proposed acquisition
of the shares of Bank.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the

416

FEDERAL RESERVE BULLETIN □ APRIL 1972

time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant, the largest bank holding company
and second largest banking organization in Ohio,
has 31 subsidiary banks controlling deposits in
excess of $1.6 billion, representing 7.4 per cent
of the total commercial bank deposits in the State.
(All banking data are as of June 30, 1971, and
reflect holding company formations and acquisi­
tions approved through February 29, 1972.) Con­
summation of the proposal herein would increase
the percentage of total State deposits controlled
by Applicant slightly to 7.5 per cent and Appli­
cant would remain the State’s second largest bank­
ing organization.
Bank, with deposits of $26.7 million, holds
41.9 per cent of deposits within Guernsey County
which approximates the relevant market within
which the competitive aspects of the proposal are to
be considered. Bank is the second largest of three
banks within the market; the largest bank is affili­
ated with the fifth largest bank holding company
in the State, while the smallest bank, located 19
miles from Cambridge, is unaffiliated. The acqui­
sition should intensify competition between the
two Cambridge banks which are comparable in size
without adversely affecting the smallest bank which
has shown itself to be an aggressive competitor.
Although Applicant has subsidiary banks in four
of the six counties adjacent to Guernsey County,
the nearest office of a subsidiary to an office of
Bank is 20 miles away and there is no significant
competition between Bank and any subsidiary of
Applicant. Because of the distances involved,
Ohio’s restrictive branching laws, and other facts
of record, it is considered unlikely that meaning­
ful future competition will develop between Bank
and Applicant’s subsidiaries. Therefore, it would
appear that approval of the application would not
eliminate significant present competition or poten­
tial competition. Accordingly, the Board concludes
that competitive considerations are consistent with
approval.
The financial and managerial resources and
future prospects of Applicant and its subsidiaries
are regarded as satisfactory. The latest examination
of Bank indicates that it is in sound condition, but
the application indicates that a management suc­
cession problem exists. Since Applicant could read­
ily resolve such a problem, banking factors lend
some weight toward approval.

Applicant, through its lead bank, would make
available international banking services and FHA
mortgage loans, neither of which is presently
available locally. The affiliation would also facil­
itate larger loans by the Bank through participa­
tions and would increase access to computer serv­
ices. Thus, considerations related to the conven­
ience and needs of the communities involved also
lend some weight toward approval. It is the Board’s
judgment that the transaction would be in the pub­
lic 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 consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after the
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 delegated
authority.
By order of the Board of Governors, March 23,
1972.




Voting for this action: Chalirman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent
andnotvoting: Governor Mitchell.
(S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary of the Board.

FIRST FINANCIAL GROUP, INC.,
JANESVILLE, WISCONSIN
O r d e r A p p r o v i n g F o r m a t io n
H o l d in g C o m p a n y

of

B ank

First Financial Group, Inc., Janesville, W iscon­
sin, 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 The First National
Bank (“ First Bank” ) and Peoples State Bank
(“ Peoples Bank” ), both of Janesville, Wisconsin.
Notice of receipt of the application has been
given in accordance with § 3(b) of the Act, and the
time for filing comments and views has expired.
The Board has considered the application 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
finds that:
Applicant is a newly-formed organization and
has no operating history. Upon acquisition of First
Bank ($36 million in deposits) and Peoples Bank

LAW DEPARTMENT

($3 million in deposits), Applicant would become
the 19th largest bank holding company and the 20th
largest banking organization in the State and would
control about 0.4 per cent of the commercial bank
deposits in the State. (All banking data are as of
June 30, 1971, and reflect holding company for­
mations and acquisitions approved through Feb­
ruary 29, 1972.)
Both of the proposed subsidiary banks are lo­
cated in Janesville, a city of 46,000 in Rock
County, W isconsin. There are six banks in Janes­
ville representing three banking groups, each of
which has two closely related banks. Applicant’s
group is the second largest as the two other groups
have deposits of $56 million and $29 million, re­
spectively. First Bank, Applicant’s lead bank, is
located in the downtown business section of the
city. Peoples Bank is located in a shopping center
in the western part of Janesville, approximately
1.3 miles from First Bank. The area served by
First Bank includes practically the entire city of
Janesville, and encompasses the service area of
Peoples Bank. First Bank and Peoples Bank are,
respectively, the second largest and smallest of the
six Janesville banks and the fourth and sixteenth
largest of 18 banks in Rock County, the relevant
market.
The two proposed subsidiary banks have been
closely associated since Peoples Bank was orga­
nized by the principal officers and directors of
First Bank in 1969. First Bank has assisted Peoples
Bank durirlg the entire priod of Peoples Bank’s
operations. Presently, shareholders common to
both banks control 54 per cent of First Bank and
66 per cent of Peoples Bank. Additionally, there
are eight common directors, representing more
than a majority of either bank’s board of directors.
Because of this close relationship, no meaningful
competition exists between the subject banks,
and it appears likely that such relationships will
continue regardless of the Board’s action on the
present application. On the basis of the record be­
fore it, the Board concludes that consummation of
the proposed acquisition would not have a signif­
icantly adverse effect on competition in any rele­
vant area. Nor is consummation likely to have any
significant adverse effects on Bank’s competitors.
Applicant proposes to assist Peoples Bank,
through its lead bank, in the technical aspects of
lending, data processing, trust services, marketing,
accounting, and auditing. While some of these
services are already being furnished, approval of
this formation would assure the continuation of
present services and the addition of improved and




417

expanded services in the future. Considerations
relating to the convenience and needs of the com­
munities to be served lend some weight toward
approval of the application.
Considerations relating to financial and mana­
gerial resources and future prospects as they relate
to Applicant and its proposed subsidiaries are re­
garded as generally satisfactory and consistent
with approval. Banking factors are consistent with
approval. It is the Board’s judgment that the pro­
posed 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 consummated (a) before
the thirtieth calendar day following the date of
this Order or (b) later than three months after the
date of this Order, unless such period is extended
for good cause by the Board, or by the Federal
Reserve Bank of Chicago pursuant to delegated
authority.
By order of the Board of Governors, March 23,
1972.
Voting for this action: Chairman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent and
not voting: Governor Mitchell.
(S ig n e d ) T y n a n S m i t h ,
[s e a l ]

Secretary o f the Board.
ORDER UNDER SECTIONS 3 AND 4
OF BANK HOLDING COMPANY ACT

OLD COLONY CO-OPERATIVE BANK,
PROVIDENCE, RHODE ISLAND
O r d e r A p p r o v in g R e t e n t io n

of

B ank

C o n t in u a t io n o f t h e A c t iv it ie s
T h r if t I n s t it u t io n

and

of a

Old Colony Co-operative Bank, Providence,
Rhode Island, has applied for the Board’s approval
under § 3(a)(1) and § 4(c)(8) of the Bank Holding
Company Act (12 U .S.C . 1842(a)(1) and 1843(c)
(8)) to retain 87.15 per cent or more of the voting
shares of The Newport National Bank, Newport,
Rhode Island, and to continue to engage in the
activities of a thrift institution.
Pursuant to § 3(b) of the Act, the Board gave
written notice of receipt of the application to retain
voting shares of a bank to the Comptroller of the
Currency and requested his views and recom­
mendation; the Comptroller recommended ap­
proval. Additionally, the Bank Commissioner and

418

FEDERAL RESERVE BULLETIN □ APRIL 1972

the Director of the Department of Business Regu­
lation for the State of Rhode Island recommended
that the applications be approved.
Notices regarding the receipt of the applications
and the Board’s decision to conduct a hearing with
respect to the applications were published in the
Federal Register on November 12, 1971 (36Federal
Register 21708, 21710). The hearing was held
before available members of the Board on Novem­
ber 29, 1971. All persons desiring to give testi­
mony, present evidence or otherwise participate
in the hearing were permitted to do so. Time for
filing additional comments and views has expired;
all those received and the entire record of the hear­
ing have been considered by the Board.
On the basis of the record and other relevant
material, the applications are approved for the
reasons set forth in the Board’s Statement of this
date.
By order of the Board of Governors, March 9,
1972.

of its decision to hold a hearing regarding Rhode
Island thrift institutions investments in commercial
banks. Applicant participated in the hearing by
presenting testimony bearing on the questions
before the Board. The Board has considered the
applications, the comments received, and the evi­
dence offered at the hearing, including testimony
presented by representatives of the Federal Home
Loan Bank Board expressing opposition to the
proposal.
Applicant is the largest thrift institution and
fifth largest financial organization in Rhode Island.
It is headquartered in Providence and operates
13 branches in the Providence banking market and
one branch 25 miles south of Providence. Applicant
presently holds $308.9 million in deposits, which
represent 8.9 per cent of the total deposits held by
all the financial organizations in Rhode Island.
Because of its inability to offer checking account
services, Applicant is at a distinct competitive
disadvantage in relation to the 11 commercial
banks, 6 mutual savings banks, and 8 credit unions
in the Providence market which presently accept
demand deposits or are authorized to do so.3
Newport Bank ($28.1 million deposits) is the
second largest of nine financial organizations
operating in the Newport market and holds about
19 per cent of the total deposits derived from the
area. There is little meaningful competition be­
tween Applicant and Bank at the present time,
and it is unlikely that such competition would
develop in the future. Each serves different and
distinct markets and their nearest offices are sepa­
rated by a distance of 14 miles and a toll bridge
costing $2.00 per round trip. Furthermore, it is
unlikely that either Applicant or Bank would
independently branch into the area served by the
other. It appears, therefore, that no meaningful
competition would be eliminated, nor significant
potential competition foreclosed, by the approval
of Applicant’s proposal.
On the contrary, as a result of approval of Appli­
cant’s proposal, competition should be increased
in each of the markets served by Applicant and
Bank. Applicant proposes establishing an office
of Bank in each of its existing offices, thereby
enabling Applicant to offer checking account
services, and a branch of Applicant in each of
Bank’s offices. The effect would be to add an
additional source of commercial banking services to

Voting for this action: Chairman Burns and Governors
Robertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan.

[s e

a l

(Signed) T y n a n S m i t h ,
Secretary o f the Board.

]

S

ta tem en t

Applicant is a State-chartered building and loan
association1 that became a bank holding company
by its acquisition of shares in The Newport National
Bank, Newport, Rhode Island, in January of 1971
apparently without knowledge that such acquisi­
tion required Board approval under the Bank
Holding Company A ct.2 Subsequently, pursuant
to contracts entered into in January and February
of 1971 and decisions handed down by the United
States District Court for the District of Rhode
Island, Applicant purchased additional shares of
Bank. The present applications are for the Board’s
permission to retain all shares acquired and to
continue the activities of a thrift institution.
In view of the issues raised by these applica­
tions and a proposal involving another Rhode
Island thrift institution, the Board published notice
'T h e Rhode Island L egislature, in 1970, specifically authorized an
association such as A pplicant to establish de novo a bank or trust com pany
or to hold a m ajority of the issued and outstanding stock of a bank or
trust com pany.
2O n June 22, 1971, the Board ordered that any com pany which
acquired a bank betw een D ecem ber 31, 1970, and June 22, 1971,
w ithout first securing prior Board approval because of lack of know ledge
of that requirem ent m ight file for such approval by A ugust 31, 1971.
A pplicant filed its application with the Federal R eserve Bank of Boston
on A ugust 30 ,1 9 7 1 .




3Each m utual savings bank in Rhode Island ow ns a com m ercial bank
subsidiary through w hich it offers checking account services. In 1971,
the R hode Island Legislature authorized State-chartered credit unions
w ith shares over $ 1 m illion to accept dem and deposits.

LAW DEPARTMENT

419

the Providence market and an additional source of
thrift institution services to the Newport market.

ORDERS UNDER SECTION 4(c)(8) OF BANK
HOLDING COMPANY ACT

The financial and managerial resources of Appli­
cant are regarded as satisfactory and consistent
with approval of the proposal, and its prospects
upon approval of the proposal appear favorable.
Bank is somewhat undercapitalized and needs
management personnel. Applicant intends to assist
Bank in remedying these deficiencies; it possesses
both the resources and expertise to do so. Pros­
pects of Bank as a subsidiary of Applicant appear
favorable. The major banking needs of the Provi­
dence and Newport areas are presently being met
by the existing institutions, and approval of this
proposal would result in no new services. In the
Board’s judgment, the balance of the banking
factors the Board is required to consider under sec­
tion 3(c) of the Act favors approval.

CROCKER NATIONAL CORPORATION,
SAN FRANCISCO, CALIFORNIA

In considering Applicant’s request to continue
the activities of a thrift institution, the Board has
determined that, in view of the history of affiliation
of mutual thrift institutions and commercial banks
in Rhode Island, A pplicant’s continuing to engage
in the activities of a thrift institution is so clearly
related to Rhode Island banking as to be a proper
incident thereto. As the Board noted in the recent
case involving another Rhode Island thrift institu­
tion, the Board believes that the situation in Rhode
Island may and should be treated separately from
the question whether the operation of a savings and
loan association by a bank holding company is so
closely related to banking that it can be a perm is­
sible activity within the meaning of section 4(c)(8)
of the Act.
Approval of the applications would permit Appli­
cant to compete more effectively with the other
Rhode Island financial organizations in which a
thrift institution owns a commercial bank. This
should produce benefits to the public of greater
convenience and increased competition without
any significant adverse effects. Therefore, the con­
siderations affecting the competitive factors under
section 3(c) of the Act and the balance of the public
interest factors the Board must consider under sec­
tion 4(c)(8) of the Act in permitting a holding
company to engage in an activity on the basis that
it is closely related to banking both favor approval.
Conclusion. On the basis of all the relevant
facts before it, including the record of the hearing
relating to this matter, the Board concludes that the
proposal would be in the public interest and that the
applications should be approved.




O r d e r D e n y in g D e t e r m in a t io n

under

§ 4(c)(8) o f B a n k H o l d i n g C o m p a n y A c t
Crocker National Corporation, San Francisco,
California, a bank holding company within the
meaning of the Bank Holding Company Act of
1956, has applied for the Board’s approval under
section 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 Ralph C. Sutro Co. (“ Sutro” ), Los
Angeles, California. Notice of the application
affording opportunity for interested persons to sub­
mit comments and views was duly published. The
time for filing comments and views has expired
and all received have been considered, including
those presented orally and in writing in connection
with a Board hearing on November 8, 1971, per­
taining to mortgage banking in general, and this
application in particular.
Applicant owns the Crocker National Bank
(“ Bank” ), San Francisco, the twelfth largest bank
in the country and the fourth largest in California.
Bank’s total deposits of $4.4 billion represent 8.5
per cent of all commercial bank deposits in the
State. Bank operates 283 branches which are
located throughout the State of California with
the principal exceptions of San Diego and Imperial
Counties. Through Bank, Applicant originates
mortgages for its own account and services its own
mortgage loan portfolio, which exceeds $300
million.
Sutro is active in the origination of mortgage
loans in most of the major markets in California,
and is in direct competition with Bank for origina­
tions in many of these markets. Headquartered in
Los Angeles, Sutro operates branch offices in
Orange County, San Diego, and San Francisco.
Sutro is the 29th largest mortgage banking firm in
the country, based on its mortgage servicing port­
folio of $560.2 m illion.1 Of real estate mortgages
recorded in the Los Angeles area2 during 1970,
Bank originated approximately $35 million mort­
gage loans, representing 0.5 per cent of all origina­
tions in that market. Sutro originated approxi­
mately $45 million mortgage loans in the Los
Angeles area, or 0.7 per cent in the same market.
In the six-county San Francisco m arket,3 Bank’s
1M ortgage servicing data as o f June 30, 1971.
2Los A ngeles, V entura, O range and S anta B arbara Counties.
3A lam eda, C ontra C osta, M arin, San Francisco, San M ateo and
Santa C lara C ounties.

420

mortgage loan originations represented a market
share of 2.4 per cent, while those of Sutro repre­
sented 0.1 per cent. Consummation of the proposed
transaction would foreclose this existing com­
petition.
Both Applicant and Sutro have the capability
and appear to have the incentive to enter geographic
markets in which neither has offices. In view of
the size, resources, experience, and expertise of
both parties and the structural conditions of the
California mortgage market, the Board believes
that the likelihood for competition between Appli­
cant and Sutro in new markets is substantial and
that the Applicant should enter those markets
either by the establishment of new offices or, per­
haps, through the acquisition of a small going
concern.
The Board also views unfavorably the concentra­
tion of economic resources that would result from
the proposed acquisition.4 The proposal would
combine one of the largest commercial banks in
California and the nation with a mortgage company
that itself is on major significance in its field. The
consolidated assets of the two financial institutions
would exceed $6 billion; their combined mortgage
servicing portfolio would approximate $877
million.
Applicant states that California mortgage com­
panies find it essential to look to markets outside
California to satisfy the demands of their institu­
tional investors, because California is shifting
from a capital deficit state to a capital surplus
state. On the other hand, no significant public
benefit to California borrowers would derive from
the proposed acquisition either by way of greater
convenience or of gains in efficiencies. In these
circumstances, the Board finds that any public
benefits to be derived from consummation of the
proposed acquisition do not outweigh the probable
adverse competitive effects.
‘W ith respect to an undue concentration of resources, the Conference
Report accom panying the 1970 A m endm ents to the Bank H olding C om ­
pany A ct states: “ The danger of undue concentration of econom ic
resources and pow er is one of the factors w hich led to the enactm ent of
this legislation, and constitutes a significant threat to the continued
healthy evolution of our free econom y. A m erican trade has always oper­
ated on the principle that relationships between businessm en, large and
sm all, should be founded on econom ic m erit rather than monopoly
pow er. O ur national policies of limited governm ental regulation and
interference in trade and com m erce, how ever, do make it possible for
undue concentrations of resources and econom ic pow er to override funda­
m ental fairness and econom ic m erit when responding to the profit
m otive. This possibility is enhanced w hen concentrations of pow er are
centered about m oney, credit and other financial areas, the com m on
denom inators of the econom y. . . . It should be clear that this legislation
directs the Board to consider all reasonable ram ifications of the concen­
tration of resources in fulfilling its responsibilities under Section 4 . "
Report No. 91-1747, p. 17.




FEDERAL RESERVE BULLETIN □ APRIL 1972

In enacting the 1970 Amendments to the Act,
Congress specified in § 4(c)(8) that the Board
shall consider whether the performance of a par­
ticular activity by an affiliate of a holding company
“ can reasonably be expected to produce benefits
to the public, such as greater convenience, in­
creased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue
concentration of resources, decreased or unfair
competition, conflicts of interests, or unsound
banking practices” . On the record of this case, the
evidence of adverse effects that would flow from
approval of Applicant’s proposal has not been out­
weighed by evidence of likely benefits to the
public.5
Accordingly, based upon the foregoing and
other considerations reflected in the record, the
application is denied.
By order of the Board of Governors, March 9,
1972, released on March 16, 1972.
Voting for this action: Chairman Burns and Governors
Robertson, Maisel, and Brimmer. Voting against this action:
Governors Mitchell, Daane, and Sheehan.
( S ig n e d ) T y n a n S m i t h ,
[s e a l]

Secretary of the Board.

C o n c u r r in g S t a t e m e n t

of

C h a ir m a n B u r n s

Approval of Crocker National Corporation’s
application to acquire Ralph C. Sutro Co. would
lead to elimination of existing competition be­
tween the two firms in the origination of mortgage
loans. However, the extent of this existing competi­
tion is relatively insignificant. I voted to deny
the application principally because approval would
foreclose future competition between the two
organizations in a number of mortgage banking
markets in California.
In my judgment, Crocker’s size alone does not
preclude it from making a procompetitive entry
into mortgage banking through acquisition of a
going concern. However, being a strong and pro­
gressive banking organization, Crocker has the
capacity to become a significant competitor in
mortgage banking without acquiring a large Cali­
fornia firm such as Sutro.
Acquisition by Crocker of either a small mort­
gage company in California, or of a large mortgage
5The H ouse Conference R eport (91-1747) states at page 19:
“ In connection w ith the overall application of the public benefits
test, it is im portant to em phasize that the bank holding com pany
m aking application under section 4(c)(8) m ust bear the burden of
proof in showing that its carrying on of a particular nonbank activity
would produce benefits to the public that outw eigh any adverse
effects.”

LAW DEPARTMENT

421

company whose present activities are carried on
primarily or solely outside the State, should have
a more beneficial effect on future competition than
would result from acquisition of Sutro. Approval
of Crocker’s proposal would reduce the potential
for significant new competition in California
mortgage banking. In view of the concentration
of California banking in a few State-wide firms, it
is important to assure that smaller California
organizations as well as organizations presently
located in other States have the opportunity to
enter the market as strong competitors. Acquisi­
tion of a sizable concern such as Sutro may well
be the best way for one or the other type of organiza­
tion to enter the market effectively. I am satisfied
that the potential for such entry is a real and prac­
tical alternative in this case.
D

is s e n t in g

S

ta tem en t

o f

G

o v ern o rs

M

it c h e l l

, D

a a n e

,

a n d

S

h e e h a n

Crocker National Corporation’s banking sub­
sidiary, Crocker National Bank (“ Crocker” ), is
the fourth largest bank in California with 8.5 per
cent of the State’s commercial bank deposits.
Nonbanking subsidiaries of Applicant include a
Small Business Investment Company, as well as
companies engaged in the leasing of equipment
and machinery, automobiles and trucks. None of
Crocker’s nonbanking assets is employed in the
mortgage banking field.
All of California’s top 10 commercial banks are
actively engaged in making real estate loans of
one type or another. Crocker is especially active
in conventional residential mortgages and in the
nonfarm nonresidential category.1 Six of the

State’s top 10 commercial banks (excluding
Crocker) service mortgages for others in addition to
those for their own account.
Inasmuch as the majority of commercial banks
in California originate mortgages for institutional
investors, there is direct competition between
commercial banks and mortgage banks in both the
origination and servicing of mortgage loans. Up
to now, Crocker has not been engaged in this
competition.
Residential mortgage credit in California is
dominated by the role of savings and loan associa­
tions. Their portfolios of conventional mortgages
are 5 times as large as those of commercial banks.
Crocker’s share of the combined total of bank and
savings and loan outstandings on residential mort­
gages of all kinds in California is 1.8 per cent.2 The
amount of insurance company and other investor
holdings of California residential mortgages is
unknown but they are the major buyers of mort­
gages generated by mortgage banking companies.
As of September 1971, HUD estimates that for the
entire country mutual savings banks, life insurance
companies and four other institutional holders had
in their portfolios $ 128 billion of residential mort­
gages compared to $147 billion held by savings and
loan associations and $45 billion held by commer­
cial banks.
Ralph C. Sutro Co. (“ Sutro” ), Los Angeles,
California, is engaged in the general mortgage
banking business in California. However, it not
only competes with commercial banks and other
Mortgage Portfolios of Banks and
Savings and Loan Associations in California
Outstandings (millions)
Dec. 31,
1971

‘A ccording to the June 30, 1971 Report of Condition, the C rocker
C itizens N ational Bank held the follow ing portfolio of real estate loans:

Savings
& Loans

Outstandings
CrockerCitizens
(millions)

Share
of Bank
Outs.

All Calif.
Banks
(millions)

Crocker
1971 Activity
Added
Paid

C a lifo rn ia
FH A
VA
C o n v e n tio n a l

June 30, 1971

Banks

Banks &
S & Ls

Crocker

Crocker
Per cent
of Total

$ 1,215
1,536
29,152

$2,312
550
6,396

$ 3,527
2,086
35,548

$142
32
575

4.0
1.5
1.6

$31,903

$9,258

$41,161

$749

1.8

T y p e o f R .E . lo an
T o ta l
S e c u re d b y fa rm lan d
S e c u re d b y 1-4 fam .
res.
In su re d F H A
G u a ra n te e d b y V A
C o n v e n tio n a lly fin.

$ 18.6

140.6
31.6
505.3

8.7%

6.2
5.7
12.4

$

213.9

2,262.1
549.9
4,080.7

$

2.5

12.7
3.0
193.9

$

4.9

14.6
2.6
79.3

S a n F ra n c is c o S M S A
FH A
VA
C o n v e n tio n a l

$

183
144
5,860

$ 6,187
S e c . b y 5 o r m o re res.
p ro p .
In su re d b y F H A
C o n v e n tio n a lly fin.
N o n fa rm n o n re s.
T o ta l

1.0
70.2
248.8

2.0
11.1
10.7

49.7
630.9
2,315.1

8.9
58.0

.1
12.7
54.7

$1,016.1

10.0

$10,102.3

$279.0

$168.9




L o s A n g e le s S M S A
FHA
VA
C o n v e n tio n a l
T o ta l

$

744
1,159
17,162

$19,065

422

FEDERAL RESERVE BULLETIN □ APRIL 1972

mortgage bankers headquartered in California, but
with mortgage bankers from outside the State as
well. National mortgage banking firms, with
offices in Los Angeles and San Francisco, include
subsidiaries of First National City Corporation,
Philadelphia National Bank, and Pittsburgh Na­
tional Corporation. Lomas & Nettleton, the
nation’s largest mortgage banking firm, has four
offices in Los Angeles and three offices in San
Francisco alone. The number of firms competing
in the mortgage markets in California, as well as
the size of the firms, give some measure of the
intense competition prevailing in these markets.
Compared to Crocker ’s mortgage business, Sutro
is a small operation. Overall, its originations in
1971 were about one-fourth those of Crocker.
However, in Southern California it did twice as
much business as Crocker. And in the VA market
it outdid Crocker 10 to 1 and in the FHA market
nearly 2 to 1. Its originations of conventional mort­
gages on the other hand were 1 per cent of
Crocker’s.3
These data on the geographical and product
markets of Crocker and Sutro attest to the minimal
competition existing between them. Whatever ad­
verse effects on existing competition that may
result from the proposed acquisition can only be
described as minute.
The majority apprehension on potential com­
petition is, in our opinion, not supported by infer­
ences from known facts. For all practical purposes,
Sutro and Crocker do not compete now and have
not in the past. What is the evidence they would
compete in the future? They are and have been
active in different geographical and product mar­
kets. Combined, their range of operation would
expand product-wise and geographically. Com­
bined, they would be a more diversified and knowl­
edgeable lender than either is now.
Concentration apprehensions appropriate to the
giant California mortgage market must be geared

to billions of dollars and not to the range of tens
and hundreds of millions.
Our fears of concentration arise from the pre­
ponderant role of California savings and loan
associations in the California housing market.
Those institutions would become more competi­
tive and the market more stable if the role of banks
and other institutional investors were larger.
We do not visualize Sutro as continuing an
independent existence in light of the housing
record. The majority conceives a more productive
union with an out-of-State institution or a smaller
California bank. It is possible that this could take
place. It is also possible that with some out-of-State
or smaller California affiliation Sutro’s position
could be eroded and it could disintegrate even as
a minor competitive influence in the huge Califor­
nia market.
The concept of de novo entry, as espoused
by the majority, is inappropriate where, as here,
Applicant would find substantial difficulty in be­
coming a significant competitive threat to the
leading firms already engaged in mortgage bank­
ing. A de novo entry by Crocker will require many
years, if the experience of other bank holding
companies who entered mortgage banking in this
manner is any indication, before even a modest
market share is obtained. Acquisition of Sutro, on
the other hand, would be procompetitive, as it
would enable Crocker to compete in each separate
product market of mortgage banking with the indus­
try leaders. Thus, entry through acquisition would
enhance competition, not hinder it, within each
of the local mortgage markets in the State.
In our view, the clear public benefits to be
derived from this particular acquisition more than
outweigh the conjectural, and in our judgment
unrealistic, possibility of greater public benefits
from a different affiliation with an unknown and
uncertain partner. Therefore, applying the statutory
standards of § 4(c)(8) to the facts of record, we
would approve the application.

C ro c k e r & S u tro o rig in a tio n s in 1971

COLORADO NATIONAL BANKSHARES,
IN C., DENVER, COLORADO

(m illio n s o f d o lla rs)

T y p e o f R e a l E state L o an
F a rm land
R e sid en tial
FHA
VA
C o n v e n tio n a l
N o n fa rm — N o n re s id e n tia l
C o n s tru c tio n
T o ta l
N o rth e rn C a lifo rn ia
S o u th e rn C a lifo rn ia




Crocker
Amount
$

2.5

Sutro
Amount

_

12.7
3.0
202.8
58.0
NA

$21.5
31.9
2.1
17.7
.8

$279.0

$74.0

$246.4
32.5

$ 4.5
69.6

D O C K E T NO. BHC-110
D
A

e t e r m in a t io n

u n d er

B

R

P

e g a r d in g

o f

N

o n b a n k in g

a n k

H

o l d in g

c t iv it ie s

C

S

l a n n ed

u b s id ia r y

o m pa n y

A

ct

In the matter of the application of Colorado
National Bankshares, Inc., for a determination
under § 4(c)(8) of the Bank Holding Company

423

LAW DEPARTMENT

Act of 1956, respecting the planned activities of
B-G Service Corp. and Aspen Industrial Bank,
proposed subsidiaries.
Applicant, Colorado National Bankshares, Inc.,
Denver, Colorado, a bank holding company within
the meaning of the Bank Holding Compay Act of
1956, had filed a request for a determination by
the Board of Governors that the planned activities
of its proposed subsidiaries, B-G Service Corp.
and Aspen Industrial Bank, are of the kind
described in § 4(c)(8) of the Act (12 U .S.C.
1843(c)(8)) so as to make it unnecessary for the
prohibitions of § 4 of the Act with regard to the
acquisition or retention of shares in nonbanking
organizations to apply in order to carry out the
purposes of the Act.
The application was filed prior to the passage
of the Bank Holding Company Act Amendments
of 1970. In accordance with applicable provisions
of the Act prior to the passage of the 1970 Amend­
ments, a hearing was held on this matter on De­
cember 1, 1970, pursuant to an Order of the
Board of Governors, before a hearing examiner
selected by the Civil Service Commission pursuant
to § 3344 of Title 5 of the United States Code.
The record made at said hearing was duly filed
with the Board. Inasmuch as § 4(c)(8) of the Act,
as amended, is controlling with respect to the
issues to be determined in this matter, on April
29, 1971, the Board issued a notice of opportunity
for hearing in this matter pursuant to § 4(c)(8), as
amended. Requests for hearing were made by
letters dated May 18, 1971, by the National As­
sociation of Insurance Agents, Inc., and the Na­
tional Association of Mutual Insurance Agents.
By letter dated November 2, 1971, Applicant
moved to amend its original application, stating
that B-G Service Corp. will cease doing business
and be liquidated upon its acquisition and that
Applicant sought only a determination by the Board
that the activities of Aspen Industrial Bank are of
the kind described in § 4(c)(8) of the Act. By
letters dated November 9 and November 13, 1971,
respectively, the proposed intervenors withdrew
their request for a further hearing. On December
16, 1971, Hearing Examiner Poindexter filed his
recommended decision, a copy of which is an­
nexed hereto, wherein he recommended that the
Board make the requested determination. The time
for filing exceptions to the recommended decision
has expired and none have been filed. The findings
of fact, conclusions of law, and recommendations
of the Hearing Examiner are adopted, and, on the
basis of the entire record, It is hereby ordered:




That the planned activities of the proposed sub­
sidiary, Aspen Industrial Bank, are determined to
be so closely related to banking or managing or
controlling banks as to be a proper incident
thereto.
By order of the Board of Governors, March
23, 1972.
Voting for this action: Chairman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent
and not voting: Governor Mitchell.
(S ig n e d )T Y N A N S m i t h ,

Secretary of the Board.

[s e a l ]

R e c o m m e n d e d D e c is io n , F in d in g s
F a c t , a n d C o n c l u s io n s o f L a w

of

Preliminary Statement
Pursuant to the order of the Board of Governors
of the Federal Reserve System, dated October 15,
1970, a hearing was held before the undersigned
hearing examiner on December 1, 1970, at the
Denver branch of the Federal Reserve Bank of
Kansas City, pursuant to Section 4(c)(8) of the
Bank Holding Company Act of 1956 (12 U.S.C.
1843 (c)(8)), upon the application in the form of a
letter, dated June 17, 1970, from Colorado CNB
Bankshares, Inc., Denver, Colorado, whose name
has since been changed to Colorado National
Bankshares, Inc., a bank holding company,
for a determination that the activities of its proposed
subsidiaries, B-G Service Corp. and Aspen In­
dustrial Bank, are each of an insurance, fiduciary
or financial nature, and so closely related to the
business of banking or managing or controlling
banks as to be a proper incident thereto, and make
it unnecessary for the prohibitions of Section 4
of the Bank Holding Company Act of 1956, as
amended, to apply to the acquisition by Colorado
CNB Bankshares, Inc., now Colorado National
Bankshares, Inc., of the controlling shares of B-G
Service Corp. and its subsidiary, Aspen Industrial
Bank, in order to carry out the purposes of the
Bank Holding Company Act of 1956, as amended.
The record made at said hearing has been filed
with the Board.
Subsequent to the date of the hearing held on
December 1, 1970, the Congress, on or about
December 30, 1970 (Public Law 91 -607), amended
the Bank Holding Company Act of 1956 and,
among other things, changed the language of
Section 4(c)(8) from the language which existed
therein at the time of the hearing.
After the 1970 amendments of the Bank Hold­
ing Company Act above referred to, Colorado

424

FEDERAL RESERVE BULLETIN □ APRIL 1972

National Bankshares, Inc. amended its applica­
tion, and again requested a determination by the
Board pursuant to Section 4(c)(8) of the said Act
as amended on December 30, 1970, that the
activities of B-G Service Corp. and Aspen In­
dustrial Bank are each so closely related to banking
or managing or controlling banks as to be a proper
incident thereto.
Accordingly, since the Board has found that Sec­
tion 4(c)(8) of the Act, as amended on December
30, 1970, is controlling with respect to the issues
to be determined in this proceeding, the Board
of Governors of the Federal Reserve System, by
order dated April 29, 1971, issued a second Notice
of Opportunity for Hearing so as to give any per­
son an opportunity to file a written request for
further hearings in this matter under the provisions
of the Act as amended on December 30, 1970.
By separate letters dated May 18, 1971, counsel
for the National Association of Insurance Agents,
Inc. and National Association of Mutual Insurance
Agents, respectively, requested, among other
things, a hearing on the issues raised in the Ap­
plication, and for permission to intervene in this
proceeding. Following informal discussions be­
tween counsel for the Applicant, proposed intervenors and counsel for the Board, the Applicant
agreed that, after Applicant acquires the capital
stock of B-G Service Corp., B-G Service Corp.
will be liquidated and its assets, including 100%
of the shares of stock of Aspen Industrial Bank,
and its shares of stock of Colorado National
Bankshares, Inc., will be distributed in liquida­
tion to the Applicant, Colorado National Bank­
shares, Inc. Applicant further agreed to amend its
Application accordingly, and omit therefrom any
request for a determination pursuant to Section
4(c)(8) of the Amended Act concerning the ac­
tivities of B-G Service Corp.
In furtherance of its agreement, and with a
covering letter addressed to the Board, dated
November 2, 1971, counsel for the Applicant
enclosed therewith for filing an original and two
copies of an undated “ Motion to Amend Applica­
tion” . This is the second motion to amend its
original application filed by Applicant. In this
latest motion to amend its original application,
Applicant has abandoned the request made in its
original application for a determination pursuant
to Section 4(c)(8) of the Act, as amended, con­
cerning the activities of both B-G Service Corp.
and Aspen Industrial Bank, and now seeks a
determination by the Board that the activities of
Aspen Industrial Bank only are so closely related

to banking or managing or controlling banks as
to be a proper incident thereto. In other words,
Applicant, Colorado National Bankshares, Inc.,
does not now apply for a determination pursuant
to Section 4(c)(8) concerning the activities of B-G
Service Corp. In said motion to amend, Applicant
states that, if it acquires the shares of B-G Service
Corp., B-G Service Corp. will cease doing busi­
ness, be liquidated, and Applicant will acquire
the assets of B-G Service Corp., including all of
the capital stock of Aspen Industrial Bank.
The motion to amend further states that the
Board of Governors of the Federal Reserve Sys­
tem has amended Regulation Y, Part 222, Title
12, Code of Federal Regulations, to provide by
Section 222.4(a) thereof that the Board has deter­
mined that operating as an industrial bank in the
manner authorized by state law, so long as the in­
stitution does not both accept demand deposits
and make commercial loans, is an activity so
closely related to banking or managing or con­
trolling banks as to be a proper incident thereto.
The motion to amend also requests that the
original Application to the Board, dated June 17,
1970, relating to the insurance activities of Aspen
Industrial Bank set out on page 5 thereof be
amended as follows:




It also writes insurance upon property mortgaged to it and a
life and accident and health insurance policy upon borrowers
in connection with the making of a loan, as it is permitted
to do under existing Colorado law, and charges commissions
for such services. It does not propose to write insurance which
it is not permitted to write under existing Colorado law.

The motion to amend further states, among
other things, that, on March 23, 1971, the name
of Colorado CNB Bankshares, Inc. was changed
to Colorado National Bankshares, Inc., and re­
quests that the name, Colorado National Bank­
shares, Inc., be substituted for the name, Colo­
rado CNB Bankshares, Inc., in the caption, body,
and signature on the Application.
Along with the motion to amend application,
counsel submitted the affidavit of Mr. Charles A.
Baer, Executive Vice President of Colorado Na­
tional Bankshares, Inc., which affidavit contains
additional factual information concerning matters
which have occurred since the hearing was closed.
Pursuant to the request of counsel, the name,
Colorado National Bankshares, Inc., has been sub­
stituted for the name, Colorado CNB Bankshares,
Inc., in the caption hereof, and Mr. Baer’s af­
fidavit accepted and considered as a part of the
record in this matter.
By letters to the Board, dated November 9 and
19, 1971, respectively, the proposed intervenors

LAW DEPARTMENT

425

withdrew their requests to intervene and for a
further hearing herein. Therefore, the matter is
now ready for a recommended decision under
Section 4(c)(8) of the Amended Act upon the
basis of the latest Motion to Amend Application
which accompanied the letter, dated November 2,
1971, from counsel for the Applicant to the Board,
“ Attention: Mr. CharlesL. Marinaccio Attorney” ,
above referred to, the affidavit of Mr. Baer, and
the record made at the hearing.
Proposed findings of fact, conclusions of law,
and brief have been submitted by counsel for
Colorado National Bankshares, Inc., the applicant
herein. These have been considered. All proposed
findings and conclusions not found or concluded
herein are rejected. Upon the basis of the entire
record, the undersigned hearing examiner makes
the following findings of fact and conclusions of
law, and issues the following recommended deci­
sion:
F

in d in g s

o f

F

act

1. The Applicant, Colorado National Bank­
shares, Inc., formerly known as Colorado CNB
Bankshares, Inc., is a corporation organized under
the laws of the State of Colorado, with its prin­
cipal place of business located at 17th and
Champa Streets, Denver, Colorado. Colorado N a­
tional Bankshares, Inc. is a registered bank hold­
ing company under the Bank Holding Company
Act of 1956, as amended (Application dated June
17, 1970) and, by action of its shareholders on
March 23, 1971, the name of the Applicant was
changed from Colorado CNB Bankshares, Inc. to
Colorado National Bankshares, Inc. (Baer Affidavit
dated May 13, 1971).
2. The Applicant, Colorado National Bank­
shares, Inc., controls five banks located in the
Denver Metropolitan Area, as follows: The Colo­
rado National Bank of Denver, Northeast Colorado
National Bank, South Colorado National Bank,
Lakewood Colorado National Bank, and Arapahoe
Colorado National Bank. Each bank is engaged in
the general banking business. On March 18, 1971,
Applicant acquired in exchange for its stock all of
the shares of Bank of Glenwood, a Colorado State
Chartered Bank engaged in the general banking
business in Glenwood Springs, Colorado.
3. All banks do a substantial amount of in­
stallment lending and in connection therewith write
or arrange for the writing of credit life, accident
and health insurance. In addition, the banks re­
quire hazard insurance of various types, such as
fire, extended coverage, collision, and liability




insurance, with reference to chattel property or
real estate which may be pledged or mortgaged to
one or more of the banks to secure the payment of
monies borrowed from such banks. In addition,
Applicant and the subsidiary banks require a
banker’s blanket bond and fire, extended coverage
and liability policies on all properties owned by
Applicant and by each of its subsidiary banks.
No application is currently being made for approval
of these activities.
4. B-G Service Corp. is a Colorado corpora­
tion which was incorporated in 1968 for the pur­
pose of writing insurance, primarily accident,
health and credit life insurance and some casualty
insurance, for customers of Bank of Glenwood.
All shareholders of B-G Service Corp. were also
shareholders of Bank of Glenwood until they ex­
changed their shares of Bank of Glenwood stock
for stock of the Applicant on March 18, 1971,
and now all shareholders of B-G Service Corp.
are shareholders of Applicant. The office of B-G
Service Corp. is at Bank of Glenwood, and it has
only one part-time employee who is also a full­
time employee of Bank of Glenwood. B-G Service
Corp. will be acquired and liquidated and conduct
no further activities.
5. B-G Service Corp. holds 100% of the stock
of Aspen Industrial Bank, and 1,901 shares of
Applicant’s stock which it acquired on March 18,
1971 in exchange for 667 shares out of 20,000
shares outstanding of Bank of Glenwood, and 667
shares out of 20,000 shares outstanding of Glen­
wood Bank Building Corporation. The shares of
Aspen Industrial Bank and of Applicant will be
acquired by applicant on liquidation of B-G Service
Corp.
6. Aspen Industrial Bank is an industrial bank
chartered under Article 17 of Chapter 14, Colorado
Revised Statutes Annotated 1963. As an industrial
bank, it is permitted by the Colorado Statutes
and does engage in the business of loaning money
on a secured or unsecured basis (with certain
limitations with respect to interest it may charge),
accepts savings deposits and pays interest thereon,
issues investment certificates on savings deposits,
such certificates having a maturity of not less than
one year, and it writes insurance upon property
mortgaged to it and a life, accident and health
insurance policy upon borrowers in connection
with making loans to its borrowers, and performs
other banking services.
7. The Colorado Statutes specifically prohibit
industrial banks from carrying any demand or
commercial bank deposits or to accept trusts, and

426

FEDERAL RESERVE BULLETIN □ APRIL 1972

Aspen Industrial Bank complies. All savings
account passbooks issued by Aspen Industrial
Bank to its depositors specifically provide that
Aspen Industrial Bank may defer the repayment of
the deposit for up to sixty (60) days following de­
mand therefor by the depositor, and following that
60-day period may then pay out the deposit in incre­
ments of 10% per month over a ten month period.
Aspen Industrial Bank depositors do not have a
legal right to withdraw their savings deposits on
demand, and Aspen Industrial Bank is not a
“ bank” as that term is defined in the Bank Holding
Company Act of 1956.
8. The insurance activities of Aspen Industrial
Bank are confined to writing insurance (as found
in paragraph 6 hereof) for borrowers of Aspen
Industrial Bank in connection with loans made
to those borrowers from Aspen Industrial Bank
and it does not intend to write insurance which
it is not permitted to write under the present
Colorado Statutes if its Application herein is
granted. It has no plans to offer insurance to other
than borrowers of Aspen Industrial Bank, and
while it urges its borrowers to obtain insurance
in connection with such loans, the obtaining of
insurance, either written by Aspen Industrial Bank
or by an outside insurance agency, is not a con­
dition of obtaining a loan.
9. Aspen Industrial Bank commenced operation
in July 1970. It was organized by officers and
directors of B-G Service Corp. in order to service
the needs of the residents of Aspen, Colorado, and
the outlying areas near Aspen, which were con­
sidered to be somewhat different than those of
customers of commercial banks. Aspen has a
permanent population of approximately 2,350.
However, Aspen and the neighboring community
of Snowmass-at-Aspen are each predominantly
recreational and tourist areas, with a large tem­
porary population of persons engaging in tem­
porary employment who present greater credit
risks, and Aspen Industrial Bank therefore can,
and does, loan money at generally higher rates
than commercial banks in the area, and makes
loans not usually available from commercial
banks because of the risk involved.
10. If Applicant, Colorado National Bank­
shares, Inc., acquires control of Aspen Industrial
Bank, it will be in a position to assist Aspen In­
dustrial Bank through loans and furnishing tech­
nical advice, and thus Aspen Industrial Bank
should become a stronger competitor of the two
other banks in Aspen for the types of loans which
an industrial bank is able to handle, and for sav­

ings deposits. The availability of advice to Aspen
Industrial Bank from the Applicant with its ex­
perience and the experience of its various banks,
should make the operations of Aspen Industrial
Bank more efficient and thus benefit the public in
the area it serves. Colorado National Bankshares,
Inc. has been of assistance to Aspen Industrial
Bank in training its Chief Executive Officer,
Richard W. Ducic, providing Aspen Industrial
Bank with a line of credit in the amount of $50,000,
making available to it personnel for public re­
lations purposes when Aspen Industrial Bank
was opening, making available to it assistance
in designing forms in working out procedures
for the operations of Aspen Industrial Bank. All
such services have been helpful to Aspen In­
dustrial Bank. The continued assistance and
availability of Applicant to Aspen Industrial Bank
would be of assistance to Aspen Industrial Bank
in conducting its business. This continued as­
sistance by Applicant cannot be assured if the
proposed acquisition of Aspen Industrial Bank
by Applicant does not take place.
11. The greater convenience of the community
of Aspen would be served by having a strong
viable industrial bank located there able to furnish
the services mentioned above, and to make avail­
able lending services to relatively high-risk bor­
rowers who might find serious difficulty in ob­
taining loans upon satisfactory terms from the
existing commercial banks in Aspen.
12. At the present time there are two com­
mercial banks in Aspen:
Bank of Aspen, which had deposits as of
December 31, 1970, of $13,247,445, and
First National Bank of Aspen, which had
deposits on the same date of $3,174,640.
13. All activities of Aspen Industrial Bank
listed herein are so closely related to banking or
managing or controlling banks as to be a proper
incident thereto. If Applicant acquires B-G
Service C orp., it plans to acquire direct ownership
of B-G Service C orp.’s Aspen Industrial Bank
stock by liquidation of B-G Service Corp. as in­
dicated.
14. For the foregoing reasons, it is found that
all of the activities of Aspen Industrial Bank are
so closely related to banking and managing or
controlling banks as to be a proper incident there­
to, and the acquisition of Aspen Industrial Bank
under the conditions set forth herein by Applicant
may be authorized under Section 4(c)(8) of the
Bank Holding Company Act of 1956, as amended.
15. Performance by Aspen Industrial Bank of




LAW DEPARTMENT

427

its activities as an affiliate of Applicant can be
expected to produce benefits to the public in the
form of greater convenience, increased com ­
petition, and gains in efficiency. Such benefits
outweigh any possible adverse effect which might
result from such acquisition, such as undue con­
centration of resources, decreased or unfair
competition, conflicts of interest, or unsound bank­
ing practices, but there is no evidence of any such
possible adverse effect.
16.
Upon the basis of the evidence, it is found
that the activities of Aspen Industrial Bank are
so closely related to banking and managing or
controlling banks as to be a proper incident
thereto, and the acquisition of Aspen Industrial
Bank by Colorado National Bankshares, Inc.
should be authorized under Section 4(c)(8) of the
Bank Holding Company Act of 1956, as amended.
Conclusions
Performance by Aspen Industrial Bank of its
activities as an affiliate of Colorado National
Bankshares, Inc. can be expected to produce
benefits to the public in the form of greater
convenience, increased competition, and gains
in efficiency.
Accordingly, it is recommended that the Ap­
plication of Colorado National Bankshares, Inc.
be granted.
(Signed)

Jo

h n

B. P

o in d e x t e r

,

Hearing Examiner.
BOATM EN’S BANCSHARES, IN C.,
ST. LOUIS, MISSOURI
O

rder

W

A

p p r o v in g

il l ia m s

, K

A

c q u is it io n

u rru s

a n d

C

o

of

.

Boatm en’s Bancshares, Inc., St. Louis, M is­
souri, a bank holding company within the mean­
ing of the Bank Holding Company Act of 1956, as
amended, has applied for the Board’s approval,
under section 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 W illiams, Kurrus and Co. (“ Com­
pany” ), St. Louis Missouri. Notice of the ap­
plication affording opportunity for interested
persons to submit comments and views has
expired and all received have been considered,
including those presented orally and in writing
in connection with a Board hearing on November
8, 1971, pertaining to mortgage banking in gen­
eral, and this application in particular.
The operation by a bank holding company of a




mortgage company is an activity that the Board
has previously determined to be closely related
to the business of banking (12 CFR 225.4(a)(1)).
A bank holding company may acquire a company
engaged in this activity in accordance with the
procedures the Board has established pursuant
to § 4(c)(8) of the Act.
Applicant is the sixth largest bank holding
company in Missouri. Applicant’s principal sub­
sidiary, Boatmen’s National Bank of St. Louis
(deposits of $295.3 m illion),1 is the sixth largest
bank in Missouri and is the third largest bank in
the St. Louis Standard Metropolitan Statistical
Area (“ SM SA” ) where the bank holds 4.9 per
cent of deposits. In the St. Louis SMSA Ap­
plicant also controls three other banks with com­
bined deposits of $54 million. Applicant’s com­
mercial bank subsidiaries originate and service
a limited number of long-term mortgage loans
and interim construction loans exclusively for
their own accounts. During 1970, Applicant’s
banks originated 20 loans on income producing
properties which totalled $3.8 million. None
of Applicant’s banks service mortgage portfolios
for institutional investors.
Company is a mortgage banking firm specializ­
ing in the origination and servicing of com­
mercial and industrial mortgage loans for the
accounts of long-term investors. It does no mort­
gage financing on new one-four family residences,
nor does it normally warehouse loans. On the
basis of its mortgage servicing portfolio of $106
m illion,2 Company ranks fifth among mortgage
companies located in the St. Louis area, and 192nd
in the nation. Five mortgage loans (totaling $16.2
million) on income producing property were
originated by Company during its last fiscal year
ending March 1971. The record herein evidences
that neither Applicant nor Company have a
significant share of the market in mortgage lending
on income producing properties— the only product
market in which they compete. On this basis,
consummation of the proposed acquisition would
have only a slightly adverse effect on existing
competition. Company’s limited capital resources
limit its potential as a competitor to Applicant
in either the construction loan market or the market
for permanent loans on one-four family residences.
It is anticipated that Com pany’s affiliation with
Applicant will enable Company to compete more
effectively with the two largest mortgage banking
1 D eposit data as of June 1971.
2D ata as of June 30, 1971.

428

FEDERAL RESERVE BULLETIN □ APRIL 1972

firms in the St. Louis SMSA, both of which are
affiliated with banks. Company will also be able
to broaden the range of its mortgage banking
services through access to the resources of Ap­
plicant, and thus offer better services to the public.
On balance, the Board concludes that the public
benefits factors the Board is required to consider
under section 4(c)(8) outweigh any possible ad­
verse effects that might result from the proposed
acquisition.
In addition to its mortgage loan and servicing
activity, Company is engaged and proposes to
continue to engage in real estate brokerage. Real
estate brokerage is not an activity that the Board
has determined to be so closely related to banking
or managing or controlling banks as to be a proper
incident thereto. Nor has Applicant demonstrated
to the Board’s satisfaction that Applicant’s ac­
tivities in the real estate brokerage field are so
closely related to banking or managing or con­
trolling banks as to be a proper incident thereto.
Accordingly, in the Board’s judgment, approval
of the application herein is appropriate only on
condition that Company terminates its real estate
brokerage activities.
Based on the record herein, the application is
approved on condition that Company terminates
its real estate brokerage activities. This approval
is subject further to the Board’s authority to re­
quire reports by, and make examinations of, hold­
ing companies and their subsidiaries and to re­
quire such modification or termination of the
activities of a holding company or any of its sub­
sidiaries 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.
By order of the Board of Governors, March 23,
1972.

of the Act and § 225.4(b)(2) of the Board’s Regu­
lation Y to retain all of the voting shares of H. S.
Pickrell Company, Phoenix, Arizona. Said shares
were purchased by Applicant in May 1970, and
under the provisions of § 4(a)(2) of the Act may
not be retained beyond December 31, 1980, with­
out prior Board approval. Notice of the applica­
tion affording opportunity for interested persons
to submit comments and views was duly published.
Time for filing comments and views has expired
and none have been received.
Applicant owns the United Bank of Arizona
(“ Bank” ), Phoenix, the sixth largest bank in
Arizona. Bank’s total deposits of $130.6 million
represent 3.4 per cent of all commercial bank
deposits in the State.1 Bank is engaged in the
business of originating mortgage loans for its
own account, consisting primarily of conven­
tional residential mortgages and shorter-term
commercial mortgages. In 1970, Bank originated
$231 thousand in conventional single family
residential loans, and $3.7 million in commercial
real estate loans. Its mortgages servicing port­
folio of $12.7 million represented the total volume
of real estate loans serviced for its own account.
Bank does not service loans for others.
H. S. Pickrell Company is engaged in the
business of originating and servicing mortgage
loans through its head office in Phoenix and one
branch located in Tucson, Arizona. In 1969, its
last full year of operation as an independent mort­
gage company, it originated $10.5 million in
residential mortgages (all FHA or VA loans). In
1970, this volume increased to $14.6 million.
Its commercial loan originations have fluctuated
between $8.1 million in 1968; $3.6 million in
1969; and $17 million in 1970. H. S. Pickrell
Company’s total mortgage originations in the
Phoenix area in 1970 accounted for 3.2 per cent
of all mortgages recorded in the Phoenix market,
while those of Applicant accounted for less than
0.4 per cent. Based upon a mortgage servicing
portfolio of $125 m illion,2 H. S. Pickrell Com­
pany ranks as the 167th largest mortgage banking
company in the country.
The Board concludes that Applicant’s proposed
retention of H. S. Pickrell Company would have
no adverse effects on competition, as neither in­
stitution has more than a minor share of the mort­
gage banking business in any local market in

Voting for this action: Chairman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent
and not voting: Governor Mitchell.
( S ig n e d ) T y n a n S m i t h ,

Secretary o f the Board.

[s e a l]

UB FINANCIAL CORP.,
PHOENIX, ARIZONA
O r d e r A p p r o v in g R e t e n t i o n
P ic k r e l l C o m p a n y

of

H. S.

UB Financial Corp., Phoenix, Arizona, a bank
holding company within the meaning of the Bank
Holding Company Act of 1956, as amended, has
applied for the Board’s approval under § 4(c)(8)




1D eposit data as of June 30, 1971.
2Servicing portfolio as of June 30, 1971.

429

LAW DEPARTMENT

Arizona, or in the State as a whole. Nor is there
anything in the record to indicate that the proposed
retention would lead to an undue concentration
of resources, conflicts of interests, or unsound
banking practices. To the contrary, it appears
that the public would benefit from the strengthening
of H. S. Pickrell Company through the continu­
ance of its enhanced ability to offer larger lines
of credit to its customers, and to compete more
effectively with the larger financial institutions in
the State. These public benefits clearly outweigh
any possible adverse effects on competition.
In addition to engaging in the activity of m ort­
gage banking, Applicant seeks permission to re­
tain H. S. Pickrell Company for the purpose of:
(1) engaging in the purchase and sale of land, and
(2) acting as a joint venturer in real estate develop­
ment. It appears that H. S. Pickrell is not cur­
rently engaged in any real estate joint ventures
but in June 1971, it purchased 19 acres of land,
which it subsequently subdivided and improved
and has contracted to sell to an independent
builder. Such land development activity was not
then and is not now permissible for bank holding
companies. The Board is of the opinion that the
activities of purchasing and selling of land or
participating as a joint venturer in real estate
development are not so closely related to bank­
ing as to be a proper incident thereto, and that
insofar as the application pertains to these ac­
tivities, it should be denied.
Based upon the foregoing and other considera­
tions reflected in the record, the application is ap­
proved provided that H. S. Pickrell Company
shall not engage in the activities of purchasing
and selling land or participating in real estate
joint ventures. This approval is subject further
to the Board’s authority to require reports by,
and make examinations of, holding companies
and their subsidiaries and to require such modifi­
cation or termination of the activities of a hold­
ing 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.
By order of the Board of Governors, March
28, 1972.
Voting for this action: Chairman Burns and Governors
Robertson, Mitchell, Brimmer, and Sheehan. Absent and not
voting: Governors Daane and Maisel.

[s e

a l

]




(Signed) T y n a n S m i t h ,
Secretary o f the Board.

ORDER UNDER SECTION 4(d) OF BANK HOLDING
COMPANY ACT

CPC INTERNATIONAL, INC.,
ENGLEWOOD CLIFFS, NEW JERSEY
O

rder

A

A

E

p p r o v in g

c t iv it ie s

o f

B

o f

N

o n b a n k in g

o l d in g

C

o m pa n y

x e m p t io n

a n k

H

CPC International, Inc., Englewood Cliffs,
New Jersey, a bank holding company within
the meaning of the Bank Holding Company Act
of 1956 (12 U .S.C . 1841), by virtue of ownership
of more than 90 per cent of the voting shares of
Argo State Bank, Summit, Illinois (“ Bank” ),
has applied to the Board of Governors, pursuant
to § 4(d) of the Act, for an exemption from the
prohibitions of § 4 (relating to nonbanking ac­
tivities and acquisitions).
Notice of receipt of the application was pub­
lished in the Federal Register on January 5, 1972
(37 Federal Register 117). Time for filing com ­
ments and views has expired.
Section 4(d) of the Act provides that to the ex­
tent such action would not be substantially at
variance with the purposes of the Act and sub­
ject to such conditions as the Board considers
necessary to protect the public interest, the Board
may grant an exemption from the provisions of
§ 4 of the Act to certain one-bank holding com ­
panies in order (1) to avoid disrupting business
relationships that have existed over a long period
of years without adversely affecting the banks
or communities involved, or (2) to avoid forced
sales of small locally owned banks to purchasers
not similarly representative of community in­
terests, or (3) to allow retention of banks that are
so small in relation to the holding com pany’s
total interests and so small in relation to the bank­
ing market to be served as to minimize the likeli­
hood that the bank’s powers to grant or deny
credit may be influenced by a desire to further
the holding com pany’s other interests.
The Board has considered the application and
all comments received in the light of the factors
set forth in § 4(d) of the Act and finds that:
CPC International is a diversified multinational
manufacturing company with assets in excess of $ 1
billion. Applicant’s largest plant, currently em­
ploying 2,800 people, has been located in Bed­
ford Park, a community adjoining Summit,
Illinois, since the beginning of the century. The
record shows that predecessors of Applicant be­
gan acquiring shares of Bank’s common stock,
and below standard investments from Bank’s

430

FEDERAL RESERVE BULLETIN □ APRIL 1972

portfolio in 1931, in a successful effort to prevent
Bank from failing; at that time, Bank was the
only Banking organization in Summit and, ap­
parently because over 1,000 employees of Ap­
plicant were depositors of Bank, Applicant de­
cided to assist Bank in overcoming its problems.
Continued purchases resulted in Applicant’s be­
coming the majority shareholder shortly there­
after. An ownership interest in excess of 90 per
cent was attained by 1936 and has been maintained
to the present date. It appears that Bank is well
managed and in sound financial condition and the
record contains nothing to suggest that Applicant
has abused its relationship with Bank or misused
Bank’s services for the benefit of Applicant’s
other interests. There is no reason to believe that
permitting this relationship to continue indefinitely
will adversely affect the Bank or the communities
involved.
Bank’s total assets ($30 million) at year-end
1970 were about 3 per cent of Applicant’s con­
solidated assets and Bank’s earnings represent less
than 1 per cent of Applicant’s 1970 net income.
It appears that CPC has never borrowed from
Bank and there has been no preferential treatment
of C PC’s suppliers; and the small size of Bank
in relation to the credit needs of CPC makes it
unlikely that CPC would use Bank unfairly to
further other interests of CPC. Summit is economi­

cally a part of the Chicago metropolitan area.
Bank competes with the many other banks in the
Chicago banking market and controls 0.1 per cent
of the total deposits in that market as of June 30,
1971.
Based on the foregoing and other considera­
tions reflected in the record, the Board has con­
cluded, pursuant to § 4(d)(1), that an exemp­
tion is warranted to avoid disrupting a business
relationship that has existed over a long period
of years without adversely affecting the banks or
communities involved; and pursuant to § 4(d)(3),
that Bank is so small in relation to the total in­
terests of Applicant and so small in relation to
the banking market served by Bank as to minimize
the likelihood that Bank’s powers to grant or
deny credit may be influenced by a desire to
further CPC ’s other interests. Accordingly, an
exemption is granted; provided, however, that
this determination is subject to revocation if the
facts upon which it is based change in any material
respect.
By order of the Board of Governors, March
23, 1972.




Voting for this action: Chairman Burns and Governors
Robertson, Daane, Maisel, Brimmer, and Sheehan. Absent
and not voting: Governor Mitchell.

[s e

a l

]

(Signed) T y n a n S m i t h ,
Secretary of the Board.

Announcements

D. Ben Kleinpeter, who had served since Jan­
uary 1, 1970, as a Board-appointed director
of the New Orleans Branch of the Federal R e­
serve Bank of Atlanta, resigned on April 1,
1972.

Margin regulations apply to extensions of
credit by brokers and dealers (Regulation T) and
loans by banks and other lenders (Regulations
U and G, respectively) for the purpose of pur­
chasing or carrying stocks registered on a national
stock exchange or named in the Board’s List of
OTC Margin Stocks. Stocks appearing on the
list have not been approved, in any way, by the
Board and representation by any person that their
appearance on the list indicates approval by the
Board or is based on approval by any Government
agency is unlawful.
The criteria employed in selecting OTC stocks
for inclusion on the list were announced on July
9, 1969. The delisting criteria are substantially
the same as those proposed by the Board on Feb­
ruary 28, 1972.

CRITERIA FOR OTC MARGIN STOCKS

PUBLICATION OF ANNUAL REPORT

The Board of Governors, on April 11, 1972,
issued the criteria that over-the-counter (OTC)
stocks must continue to meet in order to remain on
its List of OTC M argin Stocks. The approximately
430 stocks now on the list are subject to mar­
gin requirements.
The Board’s action, effective May 15, means
that margin stocks failing to meet the criteria
will be removed from the list and will not be
subject to the Board’s margin requirements.
Federal Reserve margin requirements set the
minimum down payment that must be made to
purchase margin securities. Under the present
55 per cent requirement, a purchaser is required
to pay 55 per cent of the purchase price of a m ar­
gin security and may obtain credit for the remain­
ing 45 per cent.

The Fifty-Eighth Annual Report of the Board of
Governors of the Federal Reserve System, cov­
ering operations for the calendar year 1971, is
available for distribution. Copies may be ob­
tained upon request to Publications Services,
Division of Administrative Services, Board of
Governors of the Federal Reserve System, W ash­
ington, D.C. 20551.

CHANGE IN BOARD STAFF

Charles L. Marinaccio has been appointed an
Adviser in the Division of Supervision and
Regulation effective April 3, 1972. A grad­
uate with honors of the George Washington
University Law School, Mr. Marinaccio was
with the U .S. Department of Justice before
joining the Board’s staff in 1969.
RESIGNATION OF DIRECTOR




ADMISSION OF STATE BANK TO MEMBERSHIP
IN THE FEDERAL RESERVE SYSTEM

The following bank was admitted to membership
in the Federal Reserve System during the period
March 16, 1972, through April 15, 1972:
Montana
Malta .....................First Security Bank of Malta

431

National Summary of Business Conditions
Released for publication April 14

Industrial production expanded further in March.
Nonfarm payroll employment and retail sales also
increased but the unemployment rate was higher
as the labor force increased sharply. Wholesale
prices were little changed on average. Commercial
bank credit, the money stock, and time and savings
deposits rose. Between mid-March and midApril, yields declined on short-term U .S. Govern­
ment securities but moved up in most other secur­
ity markets.

EMPLOYMENT

Nonfarm payroll employment increased substan­
tially in March with gains widespread among major
industry groups. The average workweek of m anu­
facturing production workers was little changed
at close to the highest level in over 2 years. The
unemployment rate rose to 5.9 per cent from 5.7
in February, as large employment gains were ex­
ceeded by an unusually sharp rise in the civilian
labor force.

INDUSTRIAL PRODUCTION

RETAIL SALES

Industrial production at 109.6 per cent (1967 = 100)
in March was 0.6 per cent above the February index
of 108.9 per cent. The March index was 4 per cent
above a year earlier but still 2 per cent below the
1969 high. Gains were moderate in consumer
goods and fairly rapid in business equipment and
materials.
Among consumer goods, output of carpeting,
household furniture, and consumer staples in­
creased further while production of household
appliances was off slightly from the advanced
February level and auto assemblies declined a little
in March to an annual rate of 8.3 million units. In
the materials group, production of steel, textiles,
and paper increased. Output of construction prod­
ucts also rose.

The value of retail sales in March rose 2.5 per cent
from the upward revised February level and was
about 8 per cent above a year earlier, according to
the advance report. Sales at durable goods stores
increased 4.5 per cent from February and sales at
nondurable goods stores were up 1.5 per cent.
WHOLESALE AND CONSUMER PRICES

The wholesale price index, seasonally adjusted,
rose 0.1 per cent between February and March. In­
dustrial commodities increased 0.3 per cent, in
large part as a result of higher prices for metals,
hides, lumber and plywood, and paper products.
Prices of farm and food products fell 0.3 per cent
as marked declines were reported for livestock,
meat, and fresh vegetables.

INDUSTRIAL PRODUCTION
RATIO SCALE, 1967=100

120

SO

1972

F .R .

in d e x e s ,

432



s e a s o n a lly

1966

a d ju s te d .

L a te s t fig u re s:

M a rc h .

BANK CREDIT, DEPOSITS, AND RESERVES

Commercial bank credit, adjusted for transfers of
loans between banks and their affiliates, increased
substantially further in March— rising at an annual
rate of about 18 per cent, somewhat more rapidly
than in February. Loan expansion was substantial
in March with business loans increasing at about
the strengthened rate of a month earlier. Holdings
of both U .S. Treasury securities and municipal
issues also expanded sharply with most of the
growth in the short-term area.
The narrowly-defined money stock increased
at an annual rate of 12.5 per cent in March, the
same as the rapid February rate and well above the

PRICES
=100

W holesale

__

Consum er

1967=100

higher than in mid-M arch, with the increases on
the longer maturities. The 3-month bill was bid at
about 3.85 per cent in the middle of April, com ­
pared with around 3.90 per cent a month earlier.
Yields on U.S. Government notes and bonds rose
by some 10 to 30 basis points over the same period.
From mid-March to early April yields on new
corporate securities increased, while yields on
seasoned securities remained steady on balance.
During the same period, interest rates on taxexempt securities also rose.
Common stock prices rose over the period on
active trading.
IN T E R E S T RATES

B u re a u o f L a b o r S ta tis tic s . " F a r m p ro d u c ts a n d f o o d s ” is B L S
' ‘ F a rm p r o d u c ts , a n d p ro c e s s e d fo o d s a n d f e e d s ." ' L a te s t
fig u re s: C o n s u m e r , F e b . ; W h o le s a le , M a r.

PER CENT

slow pace of January and the second half of 1971.
Total time and savings deposits increased at an
annual rate of about 8 per cent, considerably less
rapidly than in February. Expansion in consumertype time and savings deposits slowed further and
large negotiable C D ’s outstanding declined.
Free reserves of member banks averaged about
$75 million over the 5 weeks ending March 29
compared with $160 million in February. Member
bank borrowings increased and excess reserves
declined somewhat.
SECURITY MARKETS

Treasury bill rates in mid-April averaged from
about 10 basis points lower to 25 basis points




D is c o u n t r a te , r a n g e o r le v e l f o r all F .R . B a n k s . W e e k ly
a v e ra g e m a r k e t y ie ld s f o r U .S . G o v t, b o n d s m a tu r in g in 10
y e a rs o r m o r e a n d fo r 9 0 - d a y T r e a s u r y b ills . L a te s t fig u re s:
w e e k e n d in g A p r. 8.

433

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

8
9
10
11
12
14
15
16

Member bank reserves, Federal Reserve Bank credit,
and related items
Federal funds— Major reserve city banks
Reserve Bank interest rates
Reserve and margin requirements
Maximum interest rates; bank deposits
Federal Reserve Banks
Open market account
Reserve Banks; bank debits
U.S. currency

A
A
A
A
A
A
A
A
A
A
A
A
A

17
18
19
20
26
31
32
33
33
34
37
38
39

Money stock
Bank reserves; bank credit
Banks and the monetary system
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

41
42
44
47
50
52
56

Federally sponsored credit agencies
Federal finance
U.S. Government securities
Security issues
Business finance
Real estate credit
Consumer credit




Continued on next page

A 2

FEDERAL RESERVE BULLETIN □ APRIL 1972

U.S. STATISTICS—Continued

A
A
A
A
A
A
A
A

60
64
64
66
68
68
70
72

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

74
75
76
77
78
93
94
95
96
97

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
Money rates in foreign countries
Arbitrage on Treasury bills
Gold reserves of central banks and governments
Gold production
TABLES PUBLISHED PERIODICALLY:

A 98

A 108




Number of banks and branches in operation on
December 31,1971
INDEX TO STATISTICAL TABLES

A 3

Guide to Tabular Presentation
SYMBOLS AND ABBREVIATIONS
e
c
P
r

N .S .A .

E stim ated
C orrected
Prelim inary
R evised
R evised prelim inary

rP
I, II,
III, IV Q uarters
n .e .c .
N ot elsew here classified
A .R .
A nnual rate
M onthly (or quarterly) figures adjusted for
S .A .
seasonal variation

IPC
SM SA
A
L
S
U
*

M onthly (or quarterly) figures not adjusted
for seasonal variation
In dividuals, p artnerships, and corporations
S tandard m etropolitan statistical area
A ssets
L iabilities
Sources of funds
U ses of funds
A m ounts insignificant in term s of the p a r­
ticular unit (e .g ., less than 5 0 0 ,0 0 0 w hen
the unit is m illions)
(1) Z ero , (2) no figure to be ex p ected , or
(3) figure delayed

GENERAL INFORMATION
M inus signs are used to indicate (1) a d ecrease, (2) a
negative figure, or (3) an outflow .
A heavy vertical rule is used in the follow ing in ­
stances: (1) to the right (to the left) of a total w hen the
com ponents show n to the right (left) of it add to that
total (totals separated by o rdinary rules include m ore
com ponents than those show n), (2) to the right (to the
left) of item s that are not part of a balance sheet, (3) to the
left of m em orandum item s.
“ U .S . G ovt, se c u rities” m ay include guaranteed
issues of U .S . G ovt, agencies (the flow of funds figures

also include not fully guaranteed issues) as w ell as direct
obligations of the T reasury. “ State and local g o v t.” also
includes m u n icipalities, special districts, and other p o liti­
cal subdivisions.
In som e of the tables details d o not add to totals because
of rounding.
T he footnotes labeled N o t e (w hich alw ays appear
last) provide (1) the source or sources of d ata that do
not originate in the S ystem ; (2) notice w hen figures are
estim ates; and (3) inform ation on other characteristics
of the data.

TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Q uarterly

Issue

Flow of f u n d s .......................................... M a r . 1972

Page

A n n u a lly— C ontinued

A -72— A -73.9

Issue

Banks and branches, num ber,
by class and S tate............................... A p r .

1972

Page

A-98—A-99

Sem iannually
Banking offices:
A nalysis of changes in n u m b e r........
O n, and not on, Federal Reserve
Par List, n u m b e r..............................

Feb. 1972

A-98

Feb. 1972

A-99

A n nually
B ank holding com panies:
List of, D ec. 31, 1970......................... June 1971
Banking offices and deposits of
group banks, D ec. 3 1 ,1 9 7 0 ......... A ug. 1971

A - 110
A-98

Banking and m onetary statistics:
1971 ......................................................

Feb. 1972

A -100— A-101

M a r . 1972

A -9 8 — A - l 10

Flow of funds:
Assets and liabilities:
1959-70 ...............................................M ar.
1970 data (rev ised ).......................... June
Flow s:
1966-70 ...............................................M ar.
1970 selected data (re v ise d )......... ...June
Incom e and expenses:
Federal R eserve B anks....................... ...Feb.
Insured com m ercial b an k s................. ...June
M em ber banks:
C alendar y ea r.................................. ...June
Incom e ratio s.......................................June
O perating ratio s............................... ...July
Stock m arket c r e d it....................................Feb.

1971 A -7 1 .1 0 — A-71.21
1971
A -7 1 .2 — A -71.3
1971
1971

A -70— A -71.9
A -70— A -71.1

1972
1971

A-96— A-97
A -94— A-95

1971
1971
1971

A -94— A - 103
A - 104— A -109
A -100— A-105

1972

A - 102— A -103

Statistical Releases
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Issue
Anticipated schedule of release dates for individual releases.................................................................................................................................... D ec. 1971




Page
A-103

A 4

BANK RESERVES AND RELATED ITEMS □ APRIL 1972
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In m illions o f d ollars)
F acto rs supplying reserve funds
R eserve B ank cred it o u tsta n d in g
P erio d o r date

U .S. G o v t, securities 1

T o tal

B ought
o u t­
rig h t

H eld
u n d er
re p u r­
chase
agree­
m ent

L oans

F lo a t 2

O th er
F .R .
assets 3

T o ta l 4

G o ld
sto ck

Special
D raw in g
R ights
certificate
account

T re a s ­
u ry
re n c y
o u t­
s ta n d ­
ing

A verages of daily figures
1939

D e c ...................................
...................................
1945 D e c ...................................
1950— D e c ...................................

2,5 1 0
2 ,2 1 9
23,708
20,345

2 ,5 1 0
2 ,219
23,708
20,3 3 6

9

8
5
381
142

I960— D e c ...................................
1965 D e c ...................................
1967 D e c ...................................
1968 D e c ...................................

27,248
40,8 8 5
48,891
52,529
5 7 ,500
61,688

2 7 ,1 7 0
4 0 ,7 7 2
4 8 ,8 1 0
5 2,4 5 4
57,295
6 1 ,3 1 0

78
113
81
75
205
378

94
490
238
765
1,086
321

62,719
63,371
6 4 ,714
6 4 ,642
66,001
6 6 ,324
6 7 ,106
6 7 ,690
6 8 ,052
69,158

62,381
63,1 5 3
64,368
6 4 ,5 7 4

338
218
346
68

319
148
330
453

66,143

181

804

67,4 8 8
67,655
68,868

202
397
290

360
407
107

70,687
69,966
69,273

70,3 0 0
69,8 6 2
69,133

387
104
140

20
33
99

3,4 0 5
2 ,9 5 9
2 ,9 6 6

1...........................
8 ...........................
15...........................
2 2 ...........................
2 9 ...........................

6 8 ,9 7 0
68,941
68,761
68,958
69 ,514

68,481
68,8 2 2
68,761
68,863
68,938

489
119

705
59
25
141
216

Jan

5 ...........................
12...........................
19...........................

7 0 ,658
70,712
7 1 ,130
70,561

69,517
70,211
7 0,560

1,141
501
570

F eb.

2 ...........................
9 .........................
16...........................
2 3 ...........................

7 0 ,364
70,002
7 0 ,692
70,326

7 0,364
7 0,002
70,261
7 0 ,326

6 8 ,622
68 772
6 9 ,1 1 0
6 9 ,095
6 9 ,7 4 4

6 8 ,622
6 8 ,772
6 8,813
69 095
6 9 ,615

70,202
68,425
70.7 5 4

6 70,202
6,7 68,425
6 70,065

1970— D e c ....................................

1972

J a n .....................................
F e b ....................................

2 ,6 1 2
2 ,4 0 4
2 4 ,7 4 4
21 ,6 0 6

17,518
2 2 ,7 5 9
20 047
2 2 ,8 7 9

2 ,9 5 6
3,239
4 ,3 2 2
4 ,6 2 9

2 9 ,0 6 0
4 3 ,8 5 3
51,2 6 8
5 6 ,6 1 0
6 4 ,1 0 0
6 6 ,7 0 8

17 954
13,799
12,436
10,367
10 367
11,105

400

5 ,3 9 6
5 ,565
6 ,7 7 7
6 ,8 1 0
6,841
7 ,1 4 5

66,691
6 7 ,7 4 7
6 8 ,9 2 6
6 8 ,8 3 4
71 ,052
7 0 ,7 4 9
71,568
501
7 2 ,3 4 9
7 2 ,6 9 4
74,2 5 5

10,732
10,732
10,448
10,332
10,332
6 5 ,6 5 2
10,184
10,132
10,132
10.132
10 .132

400
400
400
400
400349
400
400
400
400
400

7 ,2 3 5
7,291
7 ,3 5 7
7 ,4 1 9
7 ,4 3 7820
7 ,4 6 0
7 ,5 2 3
7 ,5 4 5
7 ,5 7 3
7,611

1,177
957
780

7 5 ,415
7 3 ,9 9 4
7 3 ,199

10.132
9 ,8 5 1
9 ,5 8 8

400
400
400

7 ,6 5 6
7,7 9 5
7,8 5 9

3 ,0 2 7
3 ,0 9 0
3 ,473
4 ,4 4 4
4 ,6 4 4

859
893
927
988
1,0 9 6

7 3 ,669
7 3 ,0 4 7
7 3 ,245
74,621
7 5 ,6 2 7

10,132
10,132
10,132
10,132
10,132

400
400
400
400
400

7 ,5 8 6
7 ,5 9 4
7 ,6 0 2
7 ,615
7 ,6 3 4

57
17
14
12

4 ,2 6 0
3 ,5 9 4
3,353
3,0 2 4

1,078
1,125
1,181
1,228

7 6 ,2 5 8
7 5 ,5 9 2
75,833
74,902

10,132
10,132
10,132

400
400
400
400

7 ,6 2 6
7 ,6 3 4
7,6 4 9
7,658

431

16
42
18
14

2,791
2,7 5 9
2 ,6 9 3
3 ,020

1,279
1,307
1,150
574

74,5 2 6
74,1 8 0
74,667
7 4 ,0 0 0

10.132
10.132
9 ,9 7 7
9 .588

400
400
400
400

7,712
7,771
7,793
7,811

297
129

67
103
13
115
155

3,447
2 885
2 ,9 3 2
3 ,274
2,728

662
707
749
797
850

72,863
72,5 3 2
72,901
73,348
73,5 6 0

9 .5 8 8
9 588
9 ,588
9 588
9 ,588

400
400
400
400
400

7,818
7,8 3 4
7,8 4 8
7,868
7,8 8 2

689

15
6
255

1,884
2 ,7 1 5
3 ,0 9 4

1,2 8 0
656
878

73,4 5 6
71,8 6 5
75 ,1 2 4

10,132
9 ,5 8 8
9 ,5 8 8

400
400
400

7,7 5 9
7 ,8 2 4
7 ,8 8 9

44
17
24
18

4 ,2 5 4
3,103
3 ,156
2,843

1,099
1,179
1,223
1,261

75,791
74,951
75,995
74,7 6 0

10,132
10,132
10,132
10,132

400
400
400
400

7 ,627
7,6 4 4
7,653
7,673

25
176
28
18

2 ,749
2,528
2,953
2 ,6 1 0

1,311
1,357
611
641

74,353
74,1 2 4
75,663
72,951

10.132
10.132
9.588
9.588

400
400
400
400

7,765
7,788
7 ,802
7,813

59
703
28
732
1,030

2 ,7 9 4
2,7 1 8
3 ,626
3 ,0 4 7
2 ,6 2 0

707
749
790
843
897

72,495
7 3,0 0 5
73,313
7 4,0 8 6
75,405

9 ,588
9 ,5 8 8
9 .5 8 8
9 .5 8 8
9 .5 8 8

400
400
400
400
400

7 ,8 2 0
7 ,8 4 2
7 ,8 5 5
7 ,8 7 7
7,8 8 9

83
1941170 D e c
652
1 ,117
1,665
2 ,3 4 9
2 ,0 3 0
3,251
3 .2 3 5
3 ,5 7 0

2 ,2 0 4
1 ,0 3 2

896
2,671
3 ,047
1 ,103
2 ,7 0 4
1 ,076
2 ,6 9 0
979
J3,001
u ly ....................................
1,1 5 0
2 ,5 7 2
991
2 ,9794
74
66
312
900
3 ,1 2 2
1 ,105
1,013
3 ,129
3,905
982

W eek en d in g —
1971— D ec.

1972

8 .........................
15...........................
29 v .........................

95
576

E n d of m onth
1972

J a n .....................................
F e b ....................................
W ednesday

1972

Ja n .

5 ...........................
12...........................
19...........................
2 6 ...........................

70,275
70,518
71,451
70,561

6 69,689
6 70,361
6 70,561
6 70,561

Feb.

2 ...........................
9 ...........................
16...........................
23 .........................

70,195
6 9 ,995
71,928
6 9 ,619

6
6
6
6

8 p ......................
15p .......................
2 2p ......................
29 ^ .........................

68 872
68 772
6 8 ,802
6 9,395
70,689

* 68,872
6 68,772
t> 68 802
6 69,3 9 5
o 69,785

F o r n otes see opposite page.




70,195
69,9 9 5
70,623
69,619

586
157
890

1,305

904

APRIL 1972 □ BANK RESERVES AND RELATED ITEMS

A 5

ERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In m illions o f dollars)

F actors absorbing reserve funds
eposits, o th e r
n m e m b er b an k
reserves,
th F .R . B anks

O th er
F .R .
ac­
c o u n ts 3

O th e r2

O th er
F .R .
lia­
bilities
an d
c a p ita l3

M em b er b a n k
reserves

W ith
F .R .
B anks

C u r­
ren cy
an d
coin*

P erio d o r d ate

T o tal

Averages of daily figures

,

7,
10
28,
27,

739
1,531
1,247
920

353

248
292
493
739

11,473
12,812
16,027
17,391

1,029
389
-2 0 4
-1 ,1 0 5
2 ,1 9 2
2 ,265

16,688
18,747
20,7 5 3
2 2 ,4 8 4
23,071
23,925

11,473
12,812
16,027
17,391

.1939— D ec.
. 1941— D ec.
. 1945— D ec.
. 1950— D ec.

2 ,5 9 5
3 ,9 7 2
4 ,5 0 7
4 ,7 3 7
4 ,9 6 0
5 ,3 4 0

19,283
22,7 1 9
2 5 ,2 6 0
27,221
28,031
29,265

. 1960— D ec.
. 1965— D ec.
.1 9 6 7 — D ec.
.1968— D ec.
.1969— D ec.
.1970— D ec.
.1971— M ar.
..............A p r.
..............M ay
..............J u n e
................Ju ly
..............A ug.
..............Sept.
................O ct.
............. N o v .
..............D ec.

33,
42,
47,
50,
53,
57,

495
231
451
458
458
735

56,
56,
57,
57,
58,
58,
59,
59,
59,
61,

718
752
690
698
714
712
712
736
714
728

2 .2 2 7
2 ,1 9 4
2 ,2 4 4
2 .2 2 7
2,251
2 ,298
2 ,2 9 6
2 ,327
2 ,3 2 0
2,2 8 7

24,601
2 4 ,8 1 4
25,251
24,7 9 3
25,231
25,0 9 8
2 5 ,3 6 5
25,4 6 3
2 5 ,5 0 0
25,6 5 3

5,0 8 5
5,071
5,1 6 8
5 ,2 3 0
5 ,3 1 6
5 ,3 5 7
5 ,4 3 7
5,3 9 7
5 ,4 5 3
5 ,6 7 6

2 9 ,6 8 6
29,8 8 5
30,419
30,023
3 0 ,5 4 7
30,4 5 5
30,8 0 2
3 0 ,8 6 0
30,953
31,3 2 9

60,
59
60

750
683
597

2 ,2 0 8
2 ,273
2 ,2 4 7

26,9 5 5
2 6 ,3 7 4
26,573

5 ,9 1 0
5,5 4 8
5,3 6 5

32,865
31,9 2 2
31,938

60.

60;
6i;

732
717
710
736
708

2 ,328
2 ,398
2 ,219
2 ,2 3 4
2,301

25.783
25,151
2 5 ,2 4 6
25,785
26,081

5 ,4 9 2
5,5 9 2
5 ,9 0 7
5 ,3 6 6
5,8 4 3

31,2 7 5
30,743
31,153
31,151
3 1 ,9 2 4

.1971— D ec.

61

2 ,1 5 2
2,155
2,259

27,0 6 8
2 6 .7 8 4
2 7 .6 9 4
26.695

5 ,7 4 6
6 ,0 0 9
5,971
5 ,8 9 7

3 2 ,8 1 4
32,793
33,665
32,5 9 2

.1972— Ja n .

59;

862
727
737
724

.......................... 19
.........................26

59.
59:
59;
59

755
764
733
592

2,318
2 ,3 8 2
2 ,2 0 9
2 ,2 1 6

26 ,576
2 6 ,0 3 0
26,593
26 ,702

5 ,8 5 9
5 ,8 6 2
5 ,6 6 4
5,121

32,435
31,8 9 2
32,2 5 7
31,823

.F e b . 2
............9
........... 16
............23

59
59
60
60
60

590
587
596
617
576

2 ,269
2 ,3 3 7
2 ,169
2,1 9 1
2 ,263

2 6 ,1 8 7
2 6 ,0 1 2
26,448
26,581
2 6 ,9 4 7

427
453
660

. M ar.

306

3 1 ,6 1 4
31,4 6 5
32,108
31,6 0 2
32,253

59.
59;

60;

814
677
647

2 ,3 4 4
2,2 9 4
2,3 3 9

25 ,6 5 0
25,5 2 5
27,7 4 6

5 ,8 6 0
5 ,4 2 7
5 ,3 9 7

3 1 ,5 1 0
3 0 ,952
33,143

60,
60,
60,
59,

729
707
778
716

2,1 0 8
2,1 7 3
2 ,2 3 4
2,2 7 9

26,279
26,8 5 8
27,9 9 2
2 6 ,848

5 ,7 4 3
6 ,0 1 6
5 ,9 7 4
5,8 9 5

3 2 ,0 2 2
3 2 ,8 7 4
33,9 6 6
32,743

59,
59.

779
739
612
590

2,351
2 ,405
2 ,198
2 ,236

2 6 ,116
2 6 ,022
27,745
26,331

5 ,8 6 0
5,8 6 5
5,6 6 9
5,1 2 2

31,9 7 6
31,8 8 7
33 .4 1 4
31,453

.F e b . 2
.............. 9
............16
............ 23

575
548
620
608
589

2,2 9 9
2,3 6 0
2 ,1 4 6
2,215
2 ,3 0 2

25 ,996
26,099
26,581
26,9 1 2
28,418

5 ,4 1 9
5,441
5,663
5,021
5,3 0 6

31.4 1 5
3 1 ,5 4 0
3 2 ,2 4 4
31,933
3 3 ,724

........ 8*

.1972— Jan .
........... F eb .
........... M a r.9
W eek en d in g —

61,
61,

6o;
6o;

2 ,2 1 0

021

1
.15
.22

.29
5

.......................12

1
. 15
. 22p
.2 9 p

E n d of m onth
.1972— Jan .
........... F eb.
........... M a r .p
W ed n esd ay

59;
59,

59.
60;
60;

60;
60;
11

f D<

m.
21

h eld u n d e r rep u rch a se agreem ents as
issues b o u g h t o u trig h t as o f Sept. 29,
m in o r ch a n g e in c o n c e p t; see F e b .

961

31

abi!
ette

Digitized
41for FRASER


h e r F .R . a s s e ts ” a n d “ O th e r F .R .
n s e p a ra te ly ; fo rm e rly , th e y w ere
‘O th e r F .R . a c c o u n ts .”
ceptances, u n til A ug. 21, 1959, w hen
tinued. F o r holdings o f acceptances

.19 7 2 — Ja n .

5

.........................12

.........................19
.........................26

. M ar.

1p

............15p

........... 22p
............29 p

o n W ed. an d en d -o f-m o n th d ates, see tables o n F .R . B anks o n follow ing
pages. See also n o te 2.
5 P a rt allow ed as reserves D ec. 1, 1959— N o v . 23, 1960; all allow ed
th e r e a f te r . B eg in n in g w ith J a n . 1963, figures a re e s tim a te d ex c ep t fo r
w eek ly av e ra g es. B eg in n in g S ep t. 12, 1968, a m o u n t is b a s e d o n closeo f-b u sin ess figures fo r reserv e p e rio d 2 w eek s p rev io u s to r e p o r t d ate.
6 Includes securities lo an ed — fully secu red b y U .S. G o v t, securities
pledged w ith F .R . B anks.
7 R eflects securities sold, an d scheduled to be b o u g h t b ac k , u n d er
m atch ed sale/p u rch ase tran sactio n s.




SERVES AND RELATED ITEMS □ APRIL 1972
RESERVES AND BORROWINGS OF MEMBER BANKS
(In m illions o f dollars)
R eserve city b an k s
All m em b er banks
N ew Y o rk C ity
R eserves

R e­
q u ire d 1 Excess

B or­
row ­
ings
at
F .R .
B anks

R eserves
Free
re ­
serves

T o ta l
held

R e­
q u ire d 1 Excess

C ity o f C hicago

B o r­
row ­
ings
at
F .R .
B an k s

Reserves
F ree
re­
serves

T o tal
held

R e­
q u ire d 1

6 ,462
9 ,4 2 2
14,536
16,364

5,011
3,3 9 0
1,491
1,027

3
5
334
142

5 ,008
3,385
1,157
885

5,6 2 3
5,1 4 2
4,1 1 8
4,7 4 2

3 ,0 1 2
4 ,1 5 3
4 ,0 7 0
4 ,6 1 6

2,611
989
48
125

192
58

2,611
989
-1 4 4
67

1,141
1,143
939
1,199

601
848
924
1,191

18,527
2 2,267
2 4,915
2 6 ,766
2 7 ,774
28,993

756
452
345
455
257
272

87
454
238
765
1,086
321

669
-2
107
-3 1 0
-8 2 9
-4 9

3,6 8 7
4,301
5 ,0 5 2
5,1 5 7
5,441
5,623

3 ,658
4 ,2 6 0
5 ,0 3 4
5 ,0 5 7
5 ,385
5 ,5 8 9

29
41
18
100
56
34

19
111
40
230
259
25

10
-7 0
-2 2
-1 3 0
-2 0 3
9

958
1,143
1,2 2 5
1 ,199
1 ,285
1,3 2 9

953
1,128
1,217
1 ,1 8 4
1 ,267
1 ,3 2 2

-4

2 9 ,4 8 7
2 9,745
30,107
2 9 ,892
30,385
30,257
30,596
30,653
30,6 9 0
31 ,164

199
140
312
131
162
198
206
207
263
165

319
148
330
453
820
804
501
360
407
107

-1 2 0
-8
-1 8
-3 2 2
-6 5 8
-6 0 6
-2 9 5
-1 5 3
-1 4 4
58

5 ,6 6 4
5 ,6 9 0
5 ,8 3 7
5 ,6 3 7
5,7 2 9
5,693
5 ,6 8 3
5,678
5 ,6 4 4
5 ,7 7 4

5,7 0 3
5 ,6 9 6
5,791
5,6 7 4
5,7 5 4
5 ,6 4 0
5 ,6 7 4
5,6 6 7
5,6 0 8
5,7 4 9

-3 9
-6
46
-3 7
-2 5
53
9
11
36
25

51
15
113
90
86
164
38
67
107
35

-9 0
-2 1
-6 7
-1 2 7
-1 1 1
-1 1 1
-2 9
-5 6
-7 1
c- 1 0

1,375
1,3 9 2
1,4 3 6
1,3 8 7
1,407
1 ,417
1,417
1,425
1 ,408
1,426

1,3 8 4
1,385
1,421
1,405
1,408
1,4 1 0
1,4 2 3
1,408
1 ,400
1,425

25
3

14
-7

32,692
31,798
31,689

173
124
249

20
33
99

153
91
150

6,0 6 6
5,775
5,8 1 9

6,058
5,8 0 7
5,761

8
-3 2
58

5
71

8
-3 7
-1 3

1,503
1 ,446
1,432

1,5 1 2
1 ,442
1,443

-9
4
15

29.372
29,3 2 2
29,6 9 0
29,4 1 4
29.5 6 4

170
82
265
68
376

258
421
290
333
257

-8 8
-3 3 9
-2 5
-2 6 5
119

5,5 8 3
5,5 9 5
5,8 5 3
5 ,6 6 4
5,8 4 7

5 ,5 6 8
5 ,6 5 7
5 ,8 3 0
5 ,6 6 9
5 ,7 1 4

15
-6 2
23
-5
133

15
-1 8 2
-2 3
-6 4
133

1,387
1,355
1,447
1 ,3 5 4
1,3 9 0

1,402
1,367
1,419
1,365
1 ,3 7 9

15
56
28
25
-3

30,460
30,303
30,381
3 0 ,020

434
27
224
91

764
593
1,179
771

-3 3 0
-5 6 6
-955
-6 8 0

5,781
5,6 2 5
5,8 1 6
5,4 5 6

5 ,677
5 ,699
5,748
5 ,5 2 2

104
-7 4
68
-6 6

61
-7 4
-2 7 4
-3 3 3

1,4 4 7
1,419
1,4 1 6
1 ,387

1 ,434
1,431
1,412
1,383

13
•12
■27
4

30,195
3 0,650
3 0,604
30,421
3 0,730

324
205
247
-6 1
343

706
765
457
329
424

-3 8 2
-5 6 0
-2 1 0
-3 9 0
-8 1

5,6 7 9
5,7 1 9
5 ,7 6 2
5 ,4 6 9
5 ,8 2 5

5,561
5,759
5 ,6 9 0
5 ,5 7 8
5 ,6 8 9

118
-4 0
72
-1 0 9
136

116
86
36

2
-4 0
72
-1 9 5
100

1,398
1,428
1,441
1 ,4 1 0
1,410

1,399
1,423
1,448
1,413
1,412

3 0,779
3 0,653
30,861
30.373

214
49
210
51

309
449
332
413

-9 5
-4 0 0
-1 2 2
-3 6 2

5 ,6 4 4
5 ,6 6 8
5,808
5,513

5,671
5 ,6 9 3
5,818
5,508

-2 7
-2 5
-1 0
5

29
100
35
133

-5 6
-1 2 5
-4 5
-1 2 8

1,441
1,413
1,429
1,353

1 ,422
1 ,432
1,421
1,364

19
•26
4
•65

30.565
3 0 ,570
3 0 ,984
30,572

396
10
188
144

216
122
287
538

180
-1 1 2
-9 9
-3 9 4

5,681
5,589
5,705
5,589

5 ,6 2 6
5 ,5 9 7
5,761
5 ,5 2 0

55
-8
-5 6
69

21
64
150

55
-2 9
-1 2 0
-8 1

1,4 3 5
1,376
1,447
1,358

1 ,400
1,406
1,433
1 ,374

35
•30
14
•63

30,685
30,600
30,949
31,180
31,6 1 0

590
143
204
-2 9
314

705
59
25
141
216

-1 1 5
84
179
-1 7 0
98

5,701
5,671
5,699
5 ,747
5 ,793

5,538
5 ,6 0 4
5 ,7 5 7
5 ,7 6 4
5 ,7 9 9

163
67
-5 8
-1 7
-6

-5 9
67
-5 8
-9 6
-8 2

1,438
1,356
1 ,479
1 ,371
1,511

1,386
1,366
1,451
1,414
1,445

28
•57
45

32,502
32,688
33,447
32,400

312
105
218
192

57
17
14
12

255
88
204
180

6 ,2 0 0
6,055
6,369
5,7 6 6

6 ,1 2 0
6,141
6 ,2 6 7
5 ,848

80
-8 6
102
-8 2

80
-8 6
102
-8 2

1,520
1 ,5 6 9
1,526
1,475

1 ,526
1,549
1,563
1,459

32,190
31,693

245
50
311
130

16
42
18
14

229
8
293
116

5,9 3 6
5,733
6,078
5 ,6 8 6

5 ,8 8 0
5,8 2 5
5,8 9 5
5 ,7 8 9

56
-9 2
183
-1 0 3

56
-1 1 4
183
-1 0 3

1,460
1,439
1,450
1,4 5 3

1,451
1,445
1,466
1 ,427

9
-6
16
26

31,532
31,289
31,715
31,676
31,943

82
176
393
-7 4
310

67
103
13
115
155

15
73
380
-1 8 9
155

5 ,643
5 ,649
5 ,9 8 2
5,585
5,9 0 8

5,6 7 9
5 ,6 5 8
5 ,7 9 6
5,7 2 5
5,8 2 9

-3 6
-9
186
-1 4 0
79

-3 6
-1 0 8
186
-2 3 5
-1 5

1,411
1,435
1,473
1 ,4 2 4
1 ,4 4 0

1,425
1,419
1,479
1,4 3 2
1,4 3 6

-6

120
46
59
43
342
267

222
79
76

22

99
95
94

3

-8
-5
70
-9
3

2

39
29

io

2

-2
1
-10
-12
-2

5
10

-6
20
•37
16

14
16
12
10

APRIL 1972 □ BANK RESERVES AND RELATED ITEMS

A 7

RESERVES AND BORROWINGS OF MEMBER BANKS— Continued
(In m illions o f dollars)

C o u n try b an k s

reserve city banks

R eserves
B orrow ­
ings a t
F .R .
B anks
Excess

Period

B o rro w ­
ings at
F .R .
B anks

F ree
reserves
T otal'
held

R equired i

F ree
reserves

Excess

1,188
1,303
418
232

I
96
50

1,188
1,302
322
182

1,568
2 ,2 1 0
4 ,5 7 6
4,761

897
1 ,4 0 6
3 ,5 6 6
4 ,0 9 9

671
804
1,011
663

3
4
46
29

668
800
965
634

...1 9 3 9 — D ec.
...1 9 4 1 — D ec.
. ..1 9 4 5 — D ec.
...1 9 5 0 — D ec.

100
67
50
90
6
42

20
228
105
270
479
264

80
-1 6 1
-5 5
-1 8 0
-4 7 3
-2 2 2

6 ,6 8 9
8,2 1 9
8,901
9,875
10,335
10,765

6 ,0 6 6
7 ,8 8 9
8 ,6 3 4
9 ,6 2 5
10,158
10,576

623
330
267
250
177
189

40
92
80
180
321
28

583
238
187
70
-1 4 4
161

. . . I 9 6 0 — D ec.
...1 9 6 5 — D ec.
...1 9 6 7 — D ec.
. ..1 9 6 8 — D ec.
...1 9 6 9 — D ec.
. . .19 7 0 — D ec.

81
-3 5
91
8
10
-1 2
38
19
65
-3 5

236
119
136
181
441
425
318
163
177
22

-1 5 5
-1 5 4
-4 5
-1 7 3
-4 3 1
-4 3 7
-2 8 0
-1 4 4
-1 1 2
-5 7

10,915
11,049
11,223
11,256
11,472
11,474
11,587
11,688
11,795
11,931

10,749
10,875
11,063
11,078
11,2 9 4
11,324
11,422
11,528
11,641
11 ,757

166
174
160
178
178
150
165
160
154
174

16
10
68
161
265
208
141
115
101
42

150
164
92
17
-8 7
-5 8
24
45
53
132

. . .1971— M ar.
.....................A pr.
....................M ay
.................. Ju n e
.....................Ju ly
................... Aug.
.................. Sept.
.................... O ct.
.................. N ov.
.................. D ec.

13
5
50

12
9

13
-7
41

12,342
12,123
12,104

12,181
11,976
11,951

161
147
153

20
16
15

141
131
138

. . . . 1 9 7 2 — Ja n .
................... Feb.
...................M ar.p

242
244
231
245
221

-2 6 4
-2 7 9
-1 8 1
-2 9 1
-1 6 3

10,939
10,917
10,881
10,897
10,951

10,747
10,726
10,717
10,767
10,777

192
191
164
130
174

16
13
13
15
22

176
178
151
115
152

.1971 _ M a r .

11,

-2 2
-3 5
50
-4 6
58

12,
11,
11,
11,

121
-4 2
-1 8
10

429
375
545
372

-3 0 8
-4 1 7
-5 6 3
-3 6 2

11,572
11,430
11,490
11,470

11,376
11,275
11,320
11,327

196
155
170
143

292
218
261
132

-9 6
-6 3
-9 1
11

• Aug.

39
44
42
-7 6
55

404
588
324
146
231

-3 6 5
-5 4 4
-2 8 2
-2 2 2
-1 7 6

11,507
11,526
11,508
11,544
11,703

11,339
11,330
11,368
11,417
11,549

168
196
140
127
154

185
173
130
88
157

-1 7
23
10
39
-3

.S e p t.

12,
11,

48
-8 1
73
-5 7

118
234
194
129

-7 0
-3 1 5
-1 2 1
-1 8 6

11,743
11,610
11,6 5 i
11,682

11,569
11,436
11,512
11,568

174
174
139
114

162
108
99
97

12
66
40
17

12,
11,
12,
11,

97
-8 3
33
-6

105
47
174
201

-8
-1 3 0
-1 4 1
-2 0 7

11,772
11,648
11,848
11,802

11,563
11,517
11,651
11,705

209
131
197
97

111
54
49
140

98
77
148
-4 3

.N o v .

12,
11,
12,
12,
12,

156
-6 0
57
-7 4
68

282
15

-1 2 6
-7 5
57
-9 8
10

11,955
11,784
11,819
11,853
12,099

11,736
11,638
11,642
11 ,748
11,913

219
146
177
105
186

154
44
25
24
61

65
102
152
81
125

D ec.

•2 ,
12,

52
-2 9
-1 8
95

12,223
12,271
12,461
12,419

12,037
12,071
12 290
12,256

186
200
171
163

57
17
14
12

129
183
157
151

.19 7 2 — Jan.

12,

52
-2 9
-1 8
95

12,
12,
12,
12,

-2
10
-3 4
46

-2
10
-3 5
46

12,353
12,143
12,127
12,101

12,171
12,005
11,949
11,940

182
138
178
161

16
20
17
14

166
118
161
147

.F e b .

12,
12,
12,
12,
12,

-2 8
12
51
-1 5
79

-8 5
12
49
-2 4
58

12,096
11,985
12,048
12,069
12,215

11 ,936
11,828
11,886
11,980
12,067

160
157
162
89
148

10
4
11
7
26

150
153
151
82
122

. M ar.

3
4
6
6

7
9
10
10
io;
11;
n.
u;
ii,
ii.

n;

12.,
h

12;

12

,

12,

,

12,

12

12,

11

W eek en d in g —

,

11,
11,

11,

11,
12,

12,
11,
12,
12,
12,

13,

1I

24
58

I
57
2
9
21

1968, am o u n t is based on close-of-business figw eeks previous to re p o rt date.
aily figures. M on th ly d a ta are averages o f daily
1ar m o n th ; they are n o t averages o f the 4 or 5
h a t fall w ithin th e m o n th . B eginning w ith Jan .
ited except for w eekly averages.




j

4

11

............18
............25

1

....... 8
............15
........... 22
........... 29

.O c t.
6
........... 13
..... 20

........... 27
3

......... 10

........... 17
........... 24
1
.15

.22
.29

5
.12

.19
.26

2
. 9
.16
.23
1

...... 8

........... 15
........... 2 2 p
........... 2 9 p

T otal reserves held: Based o n figures a t close o f business th ro u g h N o v .
1959; th ereafter o n closing figures for balances with F .R . B anks an d o p e n ­
ing figures for allow able ca sh ; see also n o te 3 to preceding tab le.
Required reserves: Based o n deposits as o f opening o f business each day.
Borrowings at F.R . B a n ks: Based o n closing figures.

MAJOR RESERVE CITY BANKS □ APRIL 1972

A 8

BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In m illions o f do llars, except as n o ted )

B asic reserve position

Less—
R ep o rtin g banks
and
w eek ending—

Excess
re ­
serves 1

R elated tra n sa ctio n s w ith
U .S. G o v t, securities dealers

In te rb a n k F ed eral funds tra n sa ctio n s

N e t-

G ro ss tran sactio n s

N e t tra n sa ctio n s
B o r­
row ­
ings
fro m
d e a le rs4

P u r- ,
chases

Sales

T o tal
tw o -w ay
tra n s ­
a c tio n s 2

4 2 .8
5 1 .6
46.1
4 1 .4

10,686
11,669
11,845
11,458

4 ,7 8 8
4 ,7 8 4
5 ,5 0 4
5 ,8 8 9

4 ,1 0 8
4 ,1 0 2
3 ,983
4 ,1 9 3

6 ,5 7 8
7 ,5 6 7
7 ,8 6 2
7 ,265

681
683
1,521
1 ,6 9 6

1 ,8 4 4
1,639
1,443
1,787

73
121
303
210

1,771
1,5 1 8
1 ,1 4 0
1,5 7 6

-6 ,3 5 2
- 7 ,3 7 7
-6 ,9 3 5
- 7 ,1 1 3
-5 ,7 7 2

48 .1
5 6 .0
5 1 .6
5 3 .5
4 2 .9

11,347
11,925
12,237
12,050
11,049

5 ,0 1 2
4 ,6 4 4
5 ,0 7 5
5,091
5 ,3 2 7

3 ,9 6 6
4 ,0 0 3
4 ,3 7 0
4 ,1 6 2
4 ,0 3 2

7,381
7 ,9 2 2
7 ,8 6 7
7,8 8 8
7 ,0 1 7

1 ,047
7 ,2 8 2
705
929
1,295

2 ,5 1 5
1,897
1,809
1,9 9 5
1,676

212
200
259
197
363

2 ,3 0 3
- 1 ,6 9 7
1,550
1,799
1 ,314

214
066
552
980

- 2 ,1 6 0
- 3 ,1 3 5
- 3,427
-2 ,9 8 4

4 0 .6
5 9 .4
6 3 .9
5 6 .7

3,1 4 8
3,851
4 ,3 5 0
3 ,789

934
785
798
809

934
785
798
809

2 ,2 1 4
3,0 6 6
3,5 5 2
2 ,9 8 0

397
332
252
467

30
56
60
52

1,3 6 6
1,2 7 6
1,191
1,415

3 ,5 1 0
3 ,472
3,279
3,279
2,588

- 3 ,5 4 3
-3 ,5 7 7
-3 ,1 1 2
- 3 ,4 0 3
-2 ,6 2 5

6 9 .0
6 9 .4
5 9 .0
6 5 .4
4 9 .5

3 ,916
4 ,0 5 8
4 ,1 3 7
4 ,0 3 7
3.365

406
586
858
757
777

406
585
857
757
777

3 ,5 1 0
3 ,4 7 2
3,2 7 9
3 ,2 7 9
2,5 8 8

1,714
1,431
1,4 0 0
1 ,575
1 ,279

47
40
74
46
84

1,668
-1 ,3 9 1
1 ,326
1,529
1 ,1 9 4

3,683
3,818
2 ,7 9 0
2 589

-3 ,6 3 7
- 3 ,7 9 5
-2 ,8 2 6
- 2 ,5 3 7

4 4 .3
4 6 .6
34.5
3 1 .4

7 ,5 3 8
7 ,8 1 8
7 ,4 9 6
7 ,6 6 9

3 .8 5 4
3 ,999
4 ,7 0 6
5,081

3 ,1 7 4
3 ,3 1 7
3,1 8 5
3,3 8 5

4 ,3 6 4
4,501
4 ,3 1 0
4 ,2 8 4

681
683
1,521
1 ,696

448
307
191
320

43
65
242
158

405
242
-5 2
162

2 ,825
3,8 1 0
3.883
3,680
3,133

- 2 ,8 1 0
- 3 ,8 0 0
- 3 ,8 2 3
- 3 ,7 1 0
- 3 .1 4 7

34.8
4 7 .4
4 6 .7
4 5 .9
3 8 .7

7,431
7,868
8,101
8 ,0 1 4
7 ,6 8 4

4 ,6 0 6
4 ,058
4 ,2 1 8
4 ,3 3 4
4 ,5 5 0

3 ,5 6 0
3 ,4 1 7
3 ,5 1 3
3 ,4 0 5
3 ,2 5 5

3,871
4 ,4 5 0
4 .5 8 8
4 ,6 0 9
4 ,4 2 8

1.047
3 ,8 0 9
705
929
1,295

800
466
409
420
398

165
160
186
151
278

636
-3 0 6
224
270
120

1 ,390
1 510
1 406
1 288

-1 ,3 7 6
- 1 508
- 1 ,4 1 5
- 1 ,2 7 0

104.3
114.8
106.1
9 7 .9

2 ,0 7 8
2 ,1 3 2
2 ,1 0 7
2 ,0 9 6

688
622
700
808

638
585
598
703

1,441
1,547
1,5 0 9
1,3 9 3

51
37
103
105

110
95
89
136

110
95
89
136

1 386
1 693
1 .712
1 666
1 623

- 1 ,3 9 6
-1 ,6 8 4
- 1 ,7 0 6
— 1 674
- 1 ,6 4 2

107.7
130.6
126.5
128.5
125.8

2 ,1 6 7
2 ,3 8 4
2 ,3 5 7
2 ,3 8 0
2 359

781
692
645
715
736

645
642
590
638
616

1.523
1,742
1,767
1,742
1 ,744

137
1,692
55
76
120

240
274
250
228
220

240
-2 7 4
250
228
220

2 293
2,3 0 9
1,383
1 301

- 2 ,2 6 1
- 2 ,2 8 6
- 1 ,4 1 1
- 1 ,2 6 8

3 2 .8
33.5
20 .5
18.7

5,4 5 9
5,6 8 6
5 ,3 8 9
5 ,5 7 3

3 ,1 6 6
3 ,3 7 7
4 ,0 0 6
4 ,2 7 3

2 ,5 3 6
2 ,7 3 2
2 ,5 8 8
2 ,6 8 2

2 ,9 2 4
2 ,9 5 5
2,801
2 ,8 9 2

631
646
1,418
1,591

337
213
102
184

43
65
242
158

294
148
-1 4 0
26

1,439
2,1 1 7
2.171
2.0 1 4
1.510

-1 ,4 1 4
- 2 ,1 1 6
- 2 .1 1 8
- 2 .0 3 6
-1 ,5 0 4

2 0 .9
3 1 .4
3 1 .0
3 0 .0
2 2 .0

5,263
5 ,484
5 ,7 4 4
5,633
5 ,3 2 4

3 ,825
3 ,3 6 6
3 .573
3 ,6 1 9
3 ,8 1 4

2 .9 1 5
2 ,7 7 5
2 ,9 2 3
2 ,7 6 7
2 ,6 4 0

2 ,3 4 8
2 ,7 0 8
2,821
2 ,8 6 7
2 ,6 8 5

910
2 ,1 1 7
650
852
1,175

560
192
159
192
178

165
160
186
151
278

395
-3 2
-2 7
41
-1 0 0

B o r­
row ings
at F .R .
B anks

N et
in ter­
ban k
F ederal
funds
trans.

Surplus
or
deficit

22
1

5 ,897
6,885
6,341
5 ,569

-5 ,7 9 7
- 6 ,9 3 0
-6 ,2 5 3
- 5 ,5 2 1

6,335
7,282
7,162
6,959
5 ,7 2 2

2
3
3
2

P er cent
of
avg.
required
reserves

P u r­
chases
o f net
buying
ban k s

Sales
o f net
selling
b an k s

L o an s
to
d e a le rs 3

N et
loans

Total— 46 banks
1972— F eb.

M ar.

2 .........
9 .........
1 6.........
2 3 .........

100
-2 3
89
48

1.........
8 .........
15.........
2 2 .........
2 9 .........

-1 1
-1
227
-5 5
67

6
95
99
117

8 in N ew Y o rk C ity
1972

F eb.

2 .........
9 .........
1 6.........
2 3 .........

53
47
124
3

8 .........
15.........
2 2 .........
2 9 .........

-3 2
-1 0
167
-3 2
54

22

95
91
91

1
1
1
1
3 ,4 7 2

38 outside
N e w Y o rk C ity
1972

F eb .

M ar.

2 .........
9 .........
1 6.........
2 3 .........

47
24
-3 5
51

1.........
8 .........
15.........
2 2 .........
2 9 .........

21
9
60
-2 2
14

1
6
8
27

5 in C ity o f Chicago
1972

F eb.

2 .........
16.
23.
8
15
22
29

14
18
10
86

4
14

33 others
1972

F eb

M ar.

2.
.
9 .........
16.........
23. . . .

32
23
-2 7
33

1.........
8 .........
15.........
2 2 .........
29

31
1
54
-1 8
18

1
6
4
12

1 Based u p o n reserve balances, including all adjustm ents applicable to
th e rep o rtin g period. P rio r to Sept. 25,1968, carryover reserve deficiencies,
if any, w ere deducted. Excess reserves for later periods are n et o f all carry­
o v er reserves.
2 D erived fro m averages for individual banks fo r entire week. F igure
fo r each b an k indicates ex tent to w hich th e b a n k ’s w eekly average p u r­
chases an d sales are offsetting.
3 F ederal funds loaned, n et funds supplied to each dealer by clearing




b an k s, rep u rch ase ag reem en ts (p u rch ases o f securities fro m dealers
subject to resale), o r o th e r lending arran g em en ts.
4
F ed eral fu n d s b o rro w ed , n et funds acq u ired fro m each d ealer by
clearing b an k s, reverse rep u rch ase agreem ents (sales o f securities to
dealers subject to rep u rch ase), resale ag reem en ts, an d b orrow ings secured
by G o v t, o r o th e r issues.
N o te .— W eekly averages o f daily figures. F o r descrip tio n o f series
an d b ack d ata, see A ug. 1964 B u l l e t i n , pp. 944-74.

APRIL 1972 □ F.R. BANK INTEREST RATES

A 9

CURRENT RATES
(P er cen t p er an n u m )
L o a n s to m em b er b an k s
L o an s to all o th e rs u n d er
last p ar. Sec. 1 3 3

U n d er Sec. 10(b ) 2

U n d e r Secs. 13 a n d 13a 1
F ederal R eserve B ank
R ate on
M ar. 31,
1972
B o sto n .....................................................
N ew Y o r k ..............................................
P h ila d e lp h ia ..........................................
C le v ela n d ................................................
R ic h m o n d ...............................................
A tla n ta ....................................................
C h ic ag o ...................................................
St. L o u is.................................................
M in n e a p o lis...........................................
K an sas C ity ...........................................
D a lla s ......................................................
S an F ra n c isc o .......................................

Effective
d ate

D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.

4 Vi
4Vi
4 Vi
4 Vi
4*4
4Vi
4 Vi
4 Vi
4 Vi
4 Vi
4 Vi
4*4

13,
17,
17,
17,
24,
23,
17,
13,
23,
13,
24,
13,

Previous
ra te

R a te on
M ar. 31,
1972

434
434
434
434
434
434
434
434
434
434
43/4
434

5
5
5
5
5
5
5
5
5
5
5
5

1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971

Effective
d ate

D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.

13,
17,
17,
17,
24,
23,
17,
13,
23,
13,
24,
13,

Previous
rate

R ate on
M ar. 31,
1972

5 i4
514
514
514
514
514
514
514
514
514
514
51/4

6 Vi
6Vi
61/2
6*4
61/2
6 Vi
6 Vi
6 Vi
6 Vi
6 Vi
61/2
61/2

1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971

Effective
d ate

D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.
D ec.

13,
17,
17,
17,
24,
23,
17,
13,
23,
13,
24,
13,

1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971
1971

Previous
rate

634
63/4
634
634
634
634
634
634
634
634
634
634

1 D isco u n ts o f eligible p ap e r an d advances secured by such p ap e r o r by
2 A dvances secured to th e satisfaction o f th e F .R . B ank. M ax im u m
U .S. G ovt, o b lig atio n s o r any o th e r o b lig atio n s eligible fo r F .R . B ank
m a tu rity : 4 m o n th s.
p u rch ase. M axim um m a tu rity : 90 days except th a t discounts o f certain
3 A dvances to individuals, p artn ersh ip s, o r c o rp o ratio n s o th e r th a n
b a n k e rs’ acceptances an d o f a g ricu ltu ra l p a p e r m ay h av e m atu rities n o t
m em b er b an k s secured by d irect obligations of, o r obligations fully
o v er 6 m o n th s a n d 9 m o n th s, respectively.
g u aran teed as to p rincipal a n d interest by, th e U.S. G ovt, o r any
agency thereof. M axim um m a tu rity : 90 days.

SUMMARY OF EARLIER CHANGES
(P e r cent p er annum )

E ffective
d a te

R an g e
(o r level)—
A ll F .R .
B anks

In effect D ec. 31, 1954
1955— A pr. 14..............
15 ..............
M ay 2 ..............
A ug. 4 ..............
5 ..............
12 ..............
S ept. 9 ..............
13 ..............
N ov. 18 ..............
2 3 ..............
1956— A p r. 13..............
2 0 ..............
A ug. 2 4 ..............
3 1 ..............
1957— A ug.

9 ..............
2 3
N o v . 15 ..............
D ec. 2 ..............

1958— Ja n .
M ar.
A pr.
M ay
A ug.
S ept.
O ct.
N ov.

2 2 ..............
2 4
7 ..............
1 3 ..............
2 1 ..............
18 ..............
9 ..............
15 ..............
12 ..............
2 3 ..............
2 4 ..............
7 ..............

11/2-13/4
l f c - 1%
iy4
134- 2*4
1 V4- 2V4

2

-2 V 4

2

~2V 4

21/4
21/4- 21/2

2Vi
2^-3
2*4-3
23^-3
3

3

-3 Vi
3 Vi
3 -3V i
3

2*4-3
234-3
214-3
2^-234
2V a

1 ^ -2 1 4
1*4
1*4-2

1Va-2
2
2 -2%
2%

F .R .
B an k
of
N .Y .

1Vt
ivi
1*4
1*4

iy4

2
2

2Va

2V4

2 Vi
2 Vi

234
234
3
3

3
3 Vi
3
3

Effective
d a te

1959—M ar.

6
16
M ay 29.
Ju n e 12
Sept. 11
18

1960— Ju n e

3
10,

14,
A ug. 12,
Sept. 9
1963— July

17,
26,

3

2*4
21/4
21/4

1*4

1%
1%
2
2
2
21/2

1965— D ec.

2Vi—
3

3
3
3 Vi
3 Vi
4
4

3
3 -31/2
3Vi

31/2-4
4

31/2-4
3 Vi- 4
3%
3 - 31/2
3
3

-3 fc

31/2

3 V i-4
4

3 Vi
3 Vi
4
4

4

- 4 Vi
4*4

4 Vi

7
14.
N ov. 20
27,

4

- 4 Vi

4
4
4Vi
4 Vi

1968— M ar. 15
22.
A pr. 19
26
A ug. 16
30
D ec. 18
20,

4
4

-41/2

41/2

4V i-5
5
5 - 5 Vi
5 Vi
5 *4-5 Vi
51/4

514-51/2
5 Vi

E ffective
d a te

1969

A pr.

1970

N ov. 11.......................
13.......................
16.......................

4
3 Vi
3 Vi
3
3

6
13.

N o t e . — R ates u n d e r Secs. 13 an d 13a (as described in ta b le an d notes
above). F o r d a ta before 1955, see B anking and M onetary Statistics, 1943,
pp. 4 3 9-42 an d S upplem ent to Section 12, p. 31.
T h e ra te charged by th e F .R . B an k o f N .Y . o n rep u rch ase co n tracts
ag ain st U .S. G o v t, obligations was th e sam e as its ra te on loans to m em ber
b an k s u n d er Secs. 13 an d 13a, except in th e follow ing periods (rates in
p ercen tages): 195S— M ay 4 -6 , 1.65; A ug. 4, 1.85; Sept. 1-2, 2.10; Sept.
8, 2.15; N ov. 10, 2.375; 1956— A ug. 24 -2 9 , 2.75; 1957— A ug. 22, 3.50;
1960— O ct. 3 1 -N o v . 17, D ec. 2 8 -29, 2.75; 1961— Ja n . 9, F eb. 6 -7 , 2.75;
A p r. 3 ^ t, 2.50; J u n e 29, 2.75; July 20, 31, A ug. 1-3, 2.50; Sept. 28-29,




F .R .
B ank
of
N .Y .

1964— N ov. 24.
30,

1967— A p r.

234

R ange
(o r level)—
A ll F .R .
Banks

4*6

45*4
5 Vi
5 Vi
5 Vi

D ec.

1971

4 .......................
8 .......................

1 .......................
4 .......................
11.......................

Jan .

8 .......................
15.......................
19.......................
2 2 .......................
2 9 .......................
Feb. 13.......................
19.......................

Ju ly

16.......................
2 3 .......................

N o v . 11......................
19......................
D e c . 13......................
2 4 ......................
I n effect M ar. 31, 1972.........

R an g e
(or level)—
A ll F .R .
Banks

F .R .
B ank
of
N .Y .

5 Vi-6
6

6
6

534-6
534-6
534
5Vi-53/4
51/2-534
51/2

6
5%
534

514-51/2
514
5 -514
5 -514
5
434-5
434
4 ^ -5
5
4 34-5
434
4 ^ -4 3 4
4*4

514
514
514
5
5
5
434
5
5

4i/2

4 Vi

534
5i/i
5 Vi

5
434
434
4 Vi

51/4
51/2
5 Vi

2.75; O ct. 5, 2 .5 0 ; O ct. 23, N o v . 3, 2.75; 1962— M ar. 2 0 -2 1 , 2.75; 1 9 6 4 D ec. 10, 3.85; D ec. 15, 17, 2 2 ,2 4 , 2 8 ,3 0 , 31, 3.875; 1965— Ja n . 4 -8 , 3.875;
1968— A p r. 4, 5, 11, 15, 16, 5.125; A p r. 30, 5.75; M ay 1 -3 , 6, 9, 13-16,
5.75; Ju n e 7, 11-13, 19, 21, 24, 5.75; Ju ly 5, 16, 5.625; A ug. 16, 19, 5.25;
1971—Ja n . 21, 27, 4.75; F eb. 1-2, 4.50; 4, 11, 4 .2 5 ; 16-17, 4 .0 0 ; 18-19,
3.75. M ar. 1-2, 10, 12, 15-18, 24, 2 9 -3 1 , 3.75. A p r. 1-2, 5 -6 , 3.75; 13, 15,
21, 28, 4.125. M ay 3 -6 , 17, 4 .125; 18-20, 4 .375; 2 6 -2 7 , 4 .5 0 ; Ju n e 1,
4.50; N o v . 1 5 -1 8 ,4 .7 5 ; D ec. 17, 4.125; 2 2 ,4 .0 5 ;2 3 ,3.75; 27, 3.75; 28-2 9 ,
3.625; 30, 3.625 an d 3.75. 197 2 -Jan . 3, 5 -7 , 3.75; 10, 3.625; 11, 13-14,
1 8 -1 9 ,3 .5 0 ; F eb. 1 1 ,1 4 -1 6 ,3 .2 5 ; M ar. 1 0 ,3 .5 0 ; M ar. 14 ,3 .7 5 ; M ar. 29,4 .0 0 .

A 10

RESERVE AND MARGIN REQUIREMENTS □ APRIL 1972
RESERVE REQUIREMENTS OF MEMBER BANKS
(P er cen t o f deposits)
Beginning July 14, 1966

D ec. 31, 1949, th ro u g h July 13, 1966

Effective d ate 1

Tim e
depos­
its
(all
classes
of
banks)

C en tral
reserve
city
banks

R e­
serve
city
banks

In effect D ec. 31, 1949.........

22

18

12

5

1951— Jan .
Ja n .
1953— July
1954— Ju n e
July
1958— F eb.
M ar.
A p r.

23
24
22
21
20
19^/2
19
18%
18
171/2

19
20
19

13
14
13

6

1 1 ,1 6 ..................
25, Feb. 1 . . . .
9 , 1 ....................
24, 16..................
29, A ug. 1 . . . .
27, M ar. 1 . . . .
20, A pr. 1 . . . .
17.........................

1960— Sept. 1.........................
N ov. 2 4 .........................
1962— July 2 8 .........................
O ct. 25, N ov. 1 . . . .

T im e d ep o sits 4-5
(all classes o f b an k s)

N e t d em an d
d ep o sits 2-4

N et d em an d
deposits 2

Coun­
try
banks

R eserve
city b an k s

Effective d ate 1

C o u n try
b an k s

O ver
U n d er
O ver
U n d er
$5 m il­ $5 m il­ $5 m il­ $5 m il­
lion
lion
lion
lion
1966— Ju ly 1 4 ,2 1
1967

« 16%

,,

Sav­
ings
dep o s­
its

64

« 12

M a r 2 ................
M ar. 1 6 ................

18
1m
17

12
11 Vi
11

1968— Jan .

3%
3

16%

17

12

12%

17

m /2

12%

13

12

In effect M ar. 31, 1972.

17

17%

12%

13

3

3

5

3
10

3
10

3
10

5

P resent legal
req u irem en t:

4

10
22

7
14

row ings ab o v e a specified base fro m foreign b an k s by d om estic offices
o f a m em b er b an k . F o r details co n cern in g these req u irem en ts, see R eg u la­
tio n s D and M a n d ap p ro p ria te su p p lem en ts an d am en d m en ts th ereto .
5 Effective Jan . 5, 1967, tim e d ep o sits such as C h ristm as a n d v acatio n
club acco u n ts b ecam e subject to sam e req u irem en ts as savings d eposits.
6 See p receding co lu m n s fo r earliest effective d ate o f th is rate.
N o t e . — A ll req u ired reserves w ere held o n d ep o sit w ith F .R . B anks
Ju n e 21, 1917, un til D ec. 1959. F ro m D ec. 1959 to N ov. 1960, m em b er
ban k s w ere allow ed to co u n t p a r t o f th e ir currency an d co in as reserves;
effective N o v . 24, 1960, th ey w ere allow ed to co u n t all as reserves. F o r
fu rth er details, see B o ard ’s A n n u al R ep o rts.

(P er cent o f m a rk et value)
F o r credit extended u n d er R eg u latio n s T (b ro k ers an d dealers),
U (bank s), an d G (o th e rs th a n b ro k ers, dealers, o r banks)
O n m argin stocks

O n con v ertib le b o n d s

E nding
date

1945— F e b .
July
1946 — Jan .
1947— Jan .
1949— M ar.
1951— Jan .
1953— F e b .
1955— Jan .
A pr.
1958— Jan .
A ug.
O ct.
1960— July
1962— July
1963— N ov.
1968— M ar.

4
4
?()
31
79,
16,
19.
3.
??
15
4
15
?7
9

Ju n e
1968— M ar. 11
1970— M ay
June
8
6
1971— D ec.
1970— M ay
Effective D ec. 6, 1971

7
5
A

10

O n sh o rt sales
(T)

40
50
75

50
50
75

100

100

75
50
75
50
60
70
50
70
90
70
50
70

75
50
75
50
60
70
50
70
90
70
50
70
70
80
65
55

50
60
50
50

70
80
65
55

N o t e . — R egulations G , T, a n d U , prescribed in accordance w ith th e Securities E xchange A ct o f 1934, lim it th e a m o u n t o f cred it
to p u rch ase an d carry m argin sto ck s th a t m ay be extended on securities as co llateral by p rescribing a m ax im u m lo a n value, w hich is
a specified percentage o f th e m a rk et value o f th e collateral at th e tim e th e cred it is ex ten d ed ; m arg in req u irem en ts are th e difference
betw een th e m ark et value (100 p e rc e n t) an d th e m axim um loan value. T he te rm m argin sto ck s is defined in th e co rresp o n d in g reg u latio n .
R eg u latio n G an d special m argin req u irem en ts fo r b onds convertible in to sto ck s w ere a d o p te d by th e B o ard o f G o v ern o rs effective
M ar. 11, 1968.




5
6

3%
3

MARGIN REQUIREMENTS

1
5
5
21
1
30
17
20
4
23
16
5
16
28
10
6

64

1970— O ct. 1....................

16 i/ 2

I 6I/2
( 3)

1 1 ,1 8 .........

1969—
—A p r. 1 7 ................

1 W hen tw o dates are show n, th e first applies to the change a t central
reserve o r reserve city b an k s a n d th e second to the change at country
b anks. F o r changes p rio r to 1950 see B o ard ’s A nnual R eports.
2 D em a n d deposits subject to reserve requirem ents are gross dem an d
deposits m inus cash item s in process o f collection an d dem and balances
d ue fro m d om estic banks.
3 A u th o rity o f th e B oard o f G o v ern o rs to classify o r reclassify cities
as cen tral reserve cities was te rm in a te d effective July 28, 1962.
4 Since O ct. 16, 1969, m em ber b an k s have been required u n d er R eg u la­
tio n M to m a in ta in reserves ag a in st balances above a specified base due
fro m do m estic offices to th e ir foreign b ran ch es. Effective Jan . 7, 1971, th e
ap p licable reserve p ercen tag e w as increased fro m th e original 10 p er cen t
to 20 p e rc e n t. R eg u latio n D im poses a sim ilar reserve req u irem en t on b o r­

1937— N ov.
1945— F e b .
July
1946 — Jan .
1947— F e b .
1949 — M ar.
1951— Jan .
1953— F e b .
1955— Jan .
A pr.
1958— Jan .
A ug.
O ct.
1960 — July
1962— July
1963— N ov.

O ver
U n d er
$5 m il­ $5 m il­
lio n
lion

5

M a x im u m ....................

B eginning
date

O th er
tim e deposits

APRIL 1972 □ MAXIMUM INTEREST RATES; BANK DEPOSITS

A 11

MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(P er cen t p er annum )
R a te s Ja n . 1, 1962— July 19, 1966

R ates beg in n in g Ju ly 20, 1966

Effective d ate

E ffective date

T ype o f d eposit

T ype o f d ep o sit
Ja n . 1,
1962

July 17,
1963

Savings d e p o s its : 1
12 m o n th s o r m o re . .
Less th a n 12 m o n th s.

N ov. 24,
1964

D ec. 6,
1965

Ju ly 20,
1966
Savings d ep o sits ................
O th er tim e d e p o sits:2
M ultiple m a tu rity :3
30-89 d a y s .............
9 0 days-1 y e a r . . .
1 y ear to 2 y e a rs ..
2 years a n d o v e r. .
S in g le-m atu rity :
Less th a n $100,000:
30 days to 1 y e a r . .
1 year to 2 y e a r s . .
2 years an d o v e r . .
$100,000 a n d o ver:
30 -5 9 d a y s ............
6 0-89 d a y s ............
9 0 -1 7 9 d a y s ..........
180 days to 1 y ea r.
1 y ear o r m o r e . . .

4

3%

O th e r tim e d ep o sits: 2
12 m o n th s o r m o r e . . ..
6 m o n th s to 12 m o n th s
90 days to 6 m o n th s . . .
Less th a n 90 d a y s ...........
(30-89 days)

4

4%

3%
2%
1

4

1 C losing d a te fo r th e P o sta l Savings S ystem w as M ar. 28, 1966. M ax ­
im u m rates o n p o sta l savings acco u n ts coincided w ith th o se o n savings
deposits.
2 F o r exceptions w ith respect to ce rta in foreign tim e deposits, see
B u l l e t i n s fo r O ct. 1962, p. 1279; A ug. 1965, p. 1084; an d F eb . 1968,
p. 167.
3 M u ltip le-m atu rity tim e d eposits include deposits th a t are a u to m a ti­
cally renew able a t m a tu rity w ith o u t ac tio n by th e d ep o sito r a n d deposits
th a t are payable a fte r w ritten notice o f w ithdraw al.
4 T h e rates in effect beginning Ja n . 21 th ro u g h Ju n e 23, 1970, w ere 6*4
p er cent o n m a tu rities o f 30-59 days an d 6 % p e r cent on m atu rities o f

Sept. 26,
1966

A p r. 19,
1968

Ja n . 21,
1970

4%
5
5%

4
5

SV a
5

5%

5%
5Va

5%
5%
6
Wa

5%

( 4)
( 4)

6V4
7
VA

60 -8 9 days. Effective Ju n e 24, 1970, m ax im u m in terest rates o n these
m atu rities w ere su sp en d ed u n til fu rth e r notice.
N o t e . — M ax im u m rates th a t m ay be p aid b y m em b er b an k s are estab ­
lished by th e B o ard o f G o v ern o rs u n d e r p ro v isio n s o f R eg u latio n Q ;
how ever, a m em b er b a n k m ay n o t p ay a ra te in excess o f th e m ax im u m
rate pay ab le by S tate b an k s o r tru s t co m p an ies o n like d ep o sits u n d er
th e laws o f th e S tate in w h ich th e m em b er b a n k is located . B eginning
Feb. 1, 1936, m ax im u m rates th a t m ay b e p aid by n o n m e m b er in su red
co m m ercial b an k s, as estab lish ed by th e F D IC , h ave been th e sam e as
th o se in effect fo r m e m b er b anks.

DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS
(In m illions o f dollars)
R eserve city b an k s
Item

A ll
m em ber
ban k s

N ew
Y ork
C ity

C ity
of
C hicago

R eserve city b an k s
C o u n try
bank s

|

All
m em b er
b an k s

Ite m

O th er

F o u r w eeks ending Ja n u a ry 26, 1972
G ro ss d em an d — T o t a l. . .
I n te r b a n k .........................
U .S. G o v t........................
O th e r.................................
N e t d e m a n d 1 ....................
T im e ......................................
D em a n d balances due
fro m d om estic b a n k s . .
C u rrency a n d c o in ............
B alances w ith F .R .
B a n k s ................................
T o ta l reserves h e l d ............
R equired...........................
E x cess...............................

2 0 3,930
27,971
5 ,9 0 4
170,055
154,107
213,086

4 4 ,766
12,937
984
30,845
2 7 ,3 5 0
2 5 ,5 1 4

8 ,246
1,516
250
6 ,4 7 9
6 ,4 8 8
7 ,6 5 8

72 ,179
10,121
2 ,287
59,772
54,685
7 8 ,360

7 8 ,7 3 9
3,396
2 ,3 8 3
7 2 ,9 6 0
6 5 ,5 8 4
101,555

1 1,994
5 ,9 0 6

1,553
480

148
129

2 ,803
1,875

7,491
3 ,42 2

2 7 ,0 6 0
32,966
3 2 ,7 5 9
207

5,6 1 8
6 ,0 9 8
6 ,0 9 4
4

1,394
1,523
1 ,5 2 4
-1

11,128
13,003
12,978
25

8 ,9 2 2
12,344
1 2 ,16 4
180

C ity
of
C hicago

C o u n try
banks
O th er

F o u r w eeks en ding F eb. 23, 1972
G ro ss dem an d — T o ta l___
I n te r b a n k .........................
U .S. G o v t.........................
O th e r ..................................
N et dem an d 1......................
T im e........................................
D em and balances due
from dom estic b a n k s ...
C urrency a n d c o in .............
B alances w ith F .R .
B an k s.................................
T o tal reserves h e ld .............
R equired............................
E x c e ss................................

1
D em a n d deposits subject to reserve requirem ents are gross dem an d
deposits m inus cash item s in process o f collection an d d em an d balances
due fro m dom estic ban k s.




N ew
Y o rk
C ity

N o t e . — A verages

196,827
28 ,058
6,3 7 3
162,396
147,940
215,386

4 4 ,590
14,048
1,055
29,487
2 6 ,204
2 5 ,404

7 ,9 6 9
1,451
290
6,2 2 8
6,235
7 ,6 5 4

68,843
9 ,4 3 0
2,535
56,878
52,589
7 8 ,9 5 0

7 5 ,425
3,1 3 0
2 ,493
69,803
62,912
103,378

12,502
5,627

2 ,635
454

160
105

2 ,587
1,758

7,121
3 ,3 1 0

26,475
32,102
3 1 ,9 1 8
184

5 ,4 0 4
5 ,8 5 8
5 ,8 4 7
11

1,346
1,451
1,4 4 7
4

10,854
12,612
12,6 0 7
5

8,871
12,181
12,016
165

o f daily figures, close o f business,

A 12

FEDERAL RESERVE BANKS □ APRIL 1972
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In m illions o f dollars)
W ednesday
Ite m

E n d o f m o n th

1972

1972

M ar. 29

M ar. 22

M ar. 15

9 .4 7 5
400

9,4 7 5
400

9 .4 7 5
400

9 .4 7 5
400

9 ,4 7 5
400

M ar. 8

M ar. 1

M ar. 31

1971

F eb. 29

M ar. 31

Assets
9 ,4 7 5
400

9 ,4 7 5
400

10,464
400

323

324

322

322

325

327

326

268

1 ,030

732

28

703

59

255

6

391

79
90

69

67

63

63

82
61

63

53
85

810
8

810

810

727

727

810
16

29,396

2 9 ,0 0 6

2 8 ,5 1 7

2 8 ,6 4 6

2 8 ,7 4 6

2 9 ,6 7 6

2 8 ,2 9 9

25,6 3 8

36,147
3 ,432

36,1 4 7
3 ,4 3 2

36,076
3,3 9 9

3 6 ,034
3 ,3 6 5

36,0 3 4
3 ,3 6 5

3 6 ,1 4 7
3 ,4 3 2

3 6 ,0 3 4
3 ,365

34,031
3 ,1 7 2

i 68,975
896

i 6 8 ,5 8 5

i 6 7 .9 9 2

i 6 8 ,045

i 68,1 4 5

i 69,2 5 5
673

1,267,698

i 62,841
1,319

69,871

68,5 8 5

6 7 ,9 9 2

6 8 ,0 4 5

68,1 4 5

6 9 ,9 2 8

6 7 ,698

6 4 ,1 6 0

71,888
10,134
159

70,1 9 6
11,310
159

6 8 ,8 9 7
12,685
159

69 ,538
10,716
157

6 8 ,9 9 4
11,204
154

71 ,1 5 2
p 9 ,9 0 5
159

6 8 ,4 9 4
10.431
154

6 4 ,8 7 4
9 ,8 9 2
134

L oans: t
A cceptances:
F ed eral agency obligations:

U .S . G o v t, securities:
B o u g h t o u trig h t:
Bills
...............................................................................

p

p

p

p

p

111
185

O th e r assets:
17

17

17

17

17

17

17

721

667

614

575

536

702

485

33
159
671

p 93 ,117 p 92,5 4 8

p 9 2 ,5 6 9

p 9 1 ,2 0 0 p 91 ,1 0 5

p 9 2 ,1 3 7

8 9 ,7 8 2

86 ,895

53,1 1 0

52,549

4 9 ,5 1 3
2 5 ,9 3 2
858
201

Liabilities
53,172
D ep o sits:

p 28,418

53,061

53,128

p 2 6 ,9 1 2 p 26,581
1,314
175

851
184

589

608

620

p 30,129

p 2 9 ,0 0 9

p 2 8 ,2 3 6

7 ,514
534

8,2 6 3
513

9 ,0 5 9
505

917
205

5 2 ,964

5 2 ,5 6 0

p 2 6 ,0 9 9 p 2 5 ,9 9 6 p 27 ,7 4 6
1,081
150

1,128
137

1,293
191

25,5 2 5
884
137

548

575

715

677

159
635

2 7 ,878

p 27 ,836

2 9 ,9 4 5

27,2 2 3

2 7 ,7 8 5

7 ,9 9 8
524

8 ,4 1 0
525

6,7 4 3
555

7 ,7 1 6
521

7 ,3 4 2
546

8 9 ,3 6 4

p 89,331

p 90,3 5 3

88,0 0 9

8 5 ,1 8 6

756
742
338

755
742
277

761
742
281

753
742
278

717
702
290

9 1 ,2 0 0

p 9 1 ,1 0 5

p 9 2 ,1 3 7

89 ,7 8 2

8 6 ,8 9 5

O th e r:

p 91,349

p 9 0 ,8 4 6 p 9 0 ,9 2 8

p

p

p

C apital accounts
761
742
265

p 93,1 1 7

p

756
742
204

756
742
143

9 2 ,548

p 92,5 6 9

C o n tin g en t liability o n acceptances purchased for

p

264

262

263

263

266

263

267

255

30,763

30,7 9 6

3 0 ,742

2 9 ,5 3 2

2 9 ,3 3 6

30,758

2 9 ,3 1 7

15 ,130

M ark etab le U .S. G o v t, securities held in custody for

F ederal Reserve N otes— F ederal Reserve A gents’ Accounts
F .R . notes o u tsta n d in g (issued to B a n k ) . . .
C o llate ral held against notes o u tsta n d in g :
G o ld certificate a c c o u n t...............................
U .S. G ovt, secu rities......................................

56,934

56,9 4 4

56,889

5 6 ,7 9 4

5 6 ,7 7 4

57,0 2 7

56,759

52,9 9 6

2,4 4 5
56,075

2 ,4 4 5
56,075

2 ,4 4 5
56,025

2 ,4 4 5
56,0 2 5

2 ,4 4 5
56,0 2 5

2 ,4 4 5
56,075

2,4 4 5
56,025

3 ,2 2 0
51,665

T o tal collateral.

58,520

58,520

5 8 ,4 7 0

5 8 ,470

58,4 7 0

58,5 2 0

5 8 ,470

54,885

1 See n o te 6 o n p. A -5.
2 See n o te 7 o n p. A-5.




3 See n o te 1(b) to ta b le at to p o f p. A-77.

APRIL 1972 □ FEDERAL RESERVE BANKS

A 13

STATEM ENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1972
(In millions o f dollars)

Item

Total

Boston

New
York

Phila­
del­
phia

Cleve­
land

Rich­
mond

Atlan­
ta

C hi­
cago

an­
M inne­ Ksas
apolis
City

St.
Louis

San
Fran­
cisco

Dallas

Assets
Gold certificate acco u n t........................
Special Drawing Rights certif. acct___
F.R . notes o f other banks.....................
O ther cash................................................

9,475
400
1,230
327

Loans:
Secured by U.S. G ovt, and agency
obligations........................................
53
O th e r.....................................................
202
Acceptances:
Bought o u trig h t..................................
82
61
Held under repurchase agreem ents..
Federal agency obligations:
810
Bought o utright...................................
Held under repurchase agreem ents..
16
U.S. G ovt, securities:
Bought o u trig h t.................................. 169,255
673
Held under repurchase agreem ents..

534
23
146
10

1,139
93
260
25

489
23
114
10

880
33
67
40

917
36
85
40

499
22
265
36

1,514
70
59
46

410
15
23
20

160
7
18
10

*

48
200

362
15
35
34

441
14
51
15

4

1

2,130
49
107
41

2

82
61
37

208
16

42

62

61

43

133

30

16

32

37

109

3,207

17,745
673

3,620

5,286

5,190

3,656

11,390

2,552

1,365

2,781

3,165

9,298

Total loans and securities.....................

71,152

3,244

19,033

3,662

5,348

5,251

3,701

11,523

2,582

1,381

2,817

3,203

9,407

Cash items in process o f co llectio n ...
Bank premises..........................................
O ther assets:
D enom inated in foreign currencies..
All o th e r...............................................

13,264
159

679
2

2,534
8

653
3

883
26

931
13

1,497
16

2,143
17

734
15

503
22

849
17

861
12

997
8

17
702

1
57

25
173

1
40

1
49

1
50

1
34

2
107

1
23

*
16

1
27

1
30

2
96

T otal assets..............................................

96,726

4,696 23,270

4,995

7,327

7,324

6,071

15,481

3,823

2,117

4,157

4,628

12,837

Liabilities
F.R . n o te s.................................................
D eposits:
M ember bank reserves.......................
U.S. Treasurer—General acco u n t..
Foreign..................................................
O th er:
All o th e r...........................................

54,340

2,882

13,357

3,177

4,384

4,838

2,721

9,405

2,123

925

2,048

2,097

6,383

27,746
1,293
191

994
75
8

6,800
353
3 65

1,163
26
9

1,807
94
15

1,447
138
9

1,805
123
12

3,839
61
25

974
44
6

684
56
4

1,222
78
7

1,727
66
9

5,284
179
22

1,174

40

647

2

62

61

54

71

44

40

54

41

58

Total deposits..........................................

30,404

1,117

7,865

1,200

1,978

1,655

1,994

3,996

1,068

784

1,361

1,843

5,543

Deferred availability cash item s..........
O ther liabilities and t.~crued dividends

9,643
555

592
27

1,439
150

498
28

762
43

691
41

1,209
31

1,720
82

553
20

356
13

651
22

568
25

604
73

T otal liabilities........................................

94,942

4,618 22,811

4,903

7,167

7,225

5,955

15,203

3,764

2,078

4,082

4,533

12,603

196
193
70

39
38
15

69
68
23

40
38
21

52
50
14

118
111
49

25
25
9

17
17
5

32
32
11

42
41
12

98
95
41

4,696 23,270

4,995

7,327

7,324

6,071

15,481

3,823

2,117

4,157

4,628

12,837

4 68

14

24

14

18

39

9

6

11

14

34

Capital accounts
Capital paid i n ........................................
Surplus.......................................................
O ther capital accounts...........................

761
742
281

Total liabilities and capital a cc o u n ts.. 96,726
Contingent liability on acceptances
purchased for foreign correspond­
e n ts.........................................................

263

33
34
11

12

Federal Reserve Notes—Federal Reserve Agents’ Accounts
F.R . notes outstanding (issued to
B an k ).................................................
Collateral held against notes out­
standing:
G old certificate acco u n t....................
U.S. Govt, securities..........................
Total collateral........................................

57,027

3,056

14,158

3,294

4,601

4,985

2,980

9,695

2,195

955

2,115

2,248

6,745

2,445
56,075

150
500
3,000 13,800

300
3,150

350
4,400

285
4,720

3 ,io o

700
9,300

155
2,130

970

2,175

5
2,330

7,000

58,520

3,150 14,300

3,450

4,750

5,005

3,100

10,000

2,285

970

2,175

2,335

7,000

1 See note 6 on page A-5.
2 A fter deducting $12 million participations o f other Federal Reserve
Banks.
3 After deducting $126 million participations o f other Federal Reserve
Banks.




4 After deducting $195 million participations of other Federal Reserve
Banks.
N o t e . — Some figures for cash items in process of collection and for
member bank reserves are preliminary.

OPEN MARKET ACCOUNT □ APRIL 1972

A 14

TRANSACTIONS OF TH E SYSTEM OPEN MARKET ACCOUNT
(In millions o f dollars)
Outright transactions in U.S. Govt, securities, by maturity
Total

Treasury bills

Others within 1 year

1-5 years

M onth
Gross
sales

1971—Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
O c t..
Nov.
Dec.

5,832
3,142
2,229
1,291
1,955
2,067
1,818
2,102
772
1,883
3,160

5,153
2,523
1,298
248
1,165
1,617
1,024
1,088
1,133
1,070
1,981

1972—Jan..
Feb.

915
2,036

248
3,481

R edemp­
tions

240
50
37
127
83
’266’
110
410

Gross
pur­
chases

Gross
sales

5,347
2,600
2,033
1,163
1.893
2,067
1,709
1,818
772
1,129
3,055

5,153
2,523
1,298
248
1,165
1,617
1,024
1,088
1,133
1,070
1,981

499
1.894

248
3,481

Gross
pur­
chases

Gross
sales

110

16

11

1971— Feb. . I 189
M ar. .|
205
Apr. .
62
M ay.
82
June .
11
July.................
A u g ..
16
S ep t..
34
O c t..................
Nov..
267
D ec..:
67
1972- -Jan. . 1
Feb. . 1

-3 6 0

121
74
16

Gross
sales

14
-5 4 7
14
1,920

58

150

6

23

191
52

991
104

84
189

-4 4 4
-1 0 4

-3,548
130

406

21

1,478
-1 3 0

1,301

187
73

959

10

410

Over 10 years
Gross
pur­
chases

464
82

83
24

Federal agency
obligations (net)

Net
change
in U.S.
Govt,
secur­
ities

Gross
pur­
chases

Gross
sales

4.183
6,561
5,085
4,076
1,165
3,044
2.184
3,697
2,616
5,003
4,830

4,183
5,242
6,404
4,076
1,165
3,044
1,951
3,930
2,616
5,003
3,607

679
1,698
-4 3 9
1,043
754
323
1,027
698
-3 6 1
613
2,401

61
35
244
145

4,722
1,694

5,945
1,694

-6 6 6
-1 ,8 5 4

165
77

1 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers’ acceptances.

Exch.
or
m aturity
shifts

4,092

37
127

’266’

Gross
sales

174
263
119
46
38

2

Repurchase
agreements
(U.S. Govt,
securities)

Exch.
or m a­
turity
shifts

Gross
pur­
chases

-3,732

M onth
Exch.
or m a­
turity
shifts

Exch.,
maturity
shifts,
or
redemp­
tions

Gross
sales

240
50

Outright transactions in U.S. Govt, securities—Continued
5-10 years

Gross
pur­
chases

Redemp­
tions

O ut­
right

Repur­
chase
agree­
ments

O ut­
right,
net

-1
69
-6 9
101
-1 0 1

-2
-1 3 6
-8 2

Bankers’
acceptances

1
00 00
OS G\

p ur­
chases

-7
-3

-1
1
6
22
-4
-1 2

Under
repur­
chase
agree­
ments,
net

85
-85
48
-48
55
-55
181
-181

Net
change1

673
1,968
-7 0 7
1,099
705
316
1,148
634
-3 2 6
862
2,850
-7 8 7
-1 ,7 8 9

N o t e . —Sales, redemptions, and negative figures reduce System hold­
ings; all other figures increase such holdings.

CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS
(In millions of U.S. dollar equivalent)
End o f
period

Total

Pounds
sterling

1968—D ec..............
1969—Dec..............

2,061
1,967

1,444
1,575

8
1

A ustrian
schillings

Belgian
francs

Canadian
dollars
3
*

Danish
kroner

French
francs
433
199

German
marks
165
60

Italian
lire
1
125

Japanese
yen
1
1

4
3
*

1970

D ec..............

257

154

*

*

98

1

1971

Jan ................
Feb ...........

186
107
34
34
94
96
23
23
23
30
15
18

80
*
*
*
•
*
*
*
*
*
*
3

1
1
1
1
1
2
2
2
2
9
4
3

•
*
*
*
*
•
*
*
*
*
*
*

99
100
27
27
87
87
12
12
12
12
2
2

1
1
1
1
1
1
I
1
1
1
1
1

July

...




N ether­
lands
guilders

Swiss
francs
3
4
4
5
5
5
5
5
6
8
8
8
8
8
8

APRIL 1972 □ FEDERAL RESERVE BANKS; BANK DEBITS

A 15

M ATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions o f dollars)
Wednesday

End o f m onth

1972

Item
M ar. 29

M ar. 22

1,030
1,028
2

732
730
2

169
100
69

1972

1971

M ar. 15

M ar. 8

M ar. 1

Mar. 31

28
26
2

703
702
1

59
58
1

255
254
1

6
5
1

391
389
2

69
10
59

67
16
51

63
22
41

63
22
41

143
70
73

63
20
43

138
98
40

69,871
5,361
16,757
14,458
26,410
5,678
1,207

68,585
4,357
16,610
14,323
26,410
5,678
1,207

67,992
3,492
17,208
14,092
26,354
5,652
1 ,194

68,045
3,484
17,099
14,337
26,318
5,647
1,160

68,145
3,501
16,434
15,085
26,318
5,647
1,160

69,928
3,296
18,119
15,218
26,410
5,678
1,207

67,698
2,320
17,134
15,119
26,318
5,647
1,160

64,160
4,249
14,414
14,934
23,619
6,080
864

818
8
43
170
397
116
84

810

810

727

727

42
150
366
99
70

6
186
366
99
70

185
185

43
170
397
116
84

826
16
55
158
397
116
84

727

43
170
397
116
84

'

Feb. 29

6
186
366
99
70

M ar. 31

1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum m aturity o f the agreements.

BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
D ebits to demand deposit accounts1
(billions o f dollars)

Turnover o f dem and deposits

Period ^
Total
233
SM SA’s

6 others2

Total 232
SM SA’s
(excl.
N.Y.)

Leading SMSA’s
N.Y.

226
other
SM SA’s

Total
233
SM SA’s

Leading SM SA’s
N.Y.

6 others2

T otal 232
SM SA’s
(excl.
N.Y.)

226
other
SM SA’s

970—D ec..................................

10,896.5

5,016.1

2,480.1

5,880.3

3,400.2

77.0

170.6

76.7

52.4

42.6

971—Jan...................................
Feb..................................
M ar.................................
A pr..................................
M ay ................................
J u n e ................................
July..................................
Aug..................................
Sept.................................
O ct...................................
N ov.................................
D ec..................................

10,688.4
11,508.9
11,425.9
11,658.7
11,119.2
11,815.7
11,770.0
12,369.5
12,310.5
12,270.1
12,896.2
12,328.4

4,825.9
5,477.4
5,309.7
5,356.8
4 ,903.9
5,202.8
5 ,1 4 7 .4
5,704.9
5,6 1 3 .7
5,776.2
6,057.5
5,555.5

2,453.5
2,524.1
2,505.3
2,597.1
2,573.9
2 ,7 6 5 .2
2,773.9
2,795.7
2,815.3
2,710.9
2,857.1
2,813.1

5,862.5
6,031.5
6,116.2
6,301.9
6,215.3
6,612.9
6,622.6
6,664.7
6,696.8
6,493.9
6,838.6
6,772.8

3,408.9
3,507.4
3,610.9
3,704.8
3,641.4
3,847.7
3,848.8
3,869.0
3,881.4
3,783.1
3,981.6
3,959.7

76.3
82.0
79.5
80.5
76.6
80.1
79.8
83.7
83.0
83.3
87.0
83.1

168.3
191.3
183.5
185.6
171.2
179.3
178.9
198.7
191.7
201.5
211.0
195.6

76.8
79.5
76.5
78.7
77.9
82.4
82.7
83.4
84.0
81.1
85.2
83.5

52.6
54.0
53.3
54.4
53.4
55.8
55.8
56.0
56.3
54.7
57.3
56.5

42.9
43.9
44.1
44.7
43.7
45.3
45.2
45.3
45.4
44.4
46.4
45.9

^ Revised data will be published in the B u l l e t i n for May.
1 Excludes interbank and U.S. Govt, demand deposit accounts.
2 Boston, Philadelphia, Chicago, D etroit, San Francisco-O akland, and
Los Angeles-Long Beach.
N ote.—Total SMSA’s includes some cities and counties not designated
as SMSA’s.




For description o f series, see M ar. 1965 B u l l e t i n , p. 390.
The data shown here differ from those shown in the M ar. 1965 B u l l e t i n
because they have been revised, as described in the M ar. 1967 B u l l e t i n ,
p. 389.

A 16

U.S. CURRENCY □ APRIL 1972
DENOMINATIONS IN CIRCULATION
(In millions o f dollars)
Total
in cir­
cula­
tion 1

Total

Coin

$1 2

$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.
1959

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
6,617
6,672

8,529
9,940
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

I960.
1961 .
1962.
1963.
1964.

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
1,806

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

1965.
1066.
1967.
1968.
1969.
1970.

42,056
44,663
47,226
50,961
53,950
57,093

29,842
31,695
33,468
36,163
37,917
39,639

4,027
4,480
4,918
5,691
6,021
6,281

1,908
2,051
2,035
2,049
2,213
2,310

127
137
136
136
136
136

2,618
2,756
2,850
2,993
3,092
3,161

7,794 13,369 12,214
8,070 14,201 12,969
8,366 15,162 13,758
8,786 16,508 14,798
8,989 17,466 16,033
9,170 18,581 17,454

3,540 8,135
3,700 8,735
3,915 9,311
4,186 10,068
4,499 11,016
4,896 12,084

245
241
240
244
234
215

288
286
285
292
276
252

3
3
3
3
3
3

4
4
4
4
5
4

1971--F e b .............
M ar............
A pr.............
M ay ...........
Ju n e ...........
July............
A ug............
Sept............
Oct..............
N ov............
D ec.............

55,611
56,304
56,592
57,403
58,393
58,558
58,904
58,797
59,216
60,636
61,068

38,298
38,785
38,917
39,509
40,263
40,238
40,442
40,284
40,559
41,699
41,831

6,266
6,303
6,360
6,410
6,472
6,493
6,537
6,556
6,589
6,714
6,775

2,178
2,200
2,206
2,245
2,277
2,260
2,267
2,273
2,302
2,360
2,408

136
136
136
136
136
136
136
135
135
135
135

2,972
3,011
3,001
3,048
3,099
3,068
3,058
3,053
3,071
3,186
3,273

8,753 17,994 17,313
8,835 18,300 17,519
8,826 18,388 17,675
8,960 18,711 17,894
9,137 19,144 18,130
9,031 19,251 18,321
9,045 19,398 18,462
8,987 19,279 18,514
9,054 19,408 18,657
9,329 19,975 18,936
9,348 19,893 19,237

4,822 12,022
4,892 12,160
4,917 12,294
4,994 12,438
5,075 12,596
5,129 12,735
5,162 12,845
5,155 12,906
5,183 13,024
5,272 13,216
5,377 13,414

213
212
210
210
209
208
207
206
205
204
203

249
248
246
245
243
242
241
240
239
237
237

3
3
3
3
3
3
2
2
2
2
2

4
4
4
4
4
4
4
4
4
4
4

1972--Ja n ..............
Feb.............

59,429
59,795

40,388
40,725

6,774
6,812

2,281
2,275

135
135

3,083
3,087

8,900
9,010

5,261
5,257

202
201

235
234

2
2

4
4

End o f period

Coin and small denomination currency

1 Outside Treasury and F.R . Banks. Before 1955 details are slightly
overstated because they include small amounts o f paper currency held
by the Treasury and the F.R. Banks for which a denominational breakdown is not available.

Large denom ination currency

19,215
19,405

19,042
19,070

13,337
13,371

$1,000 $5,000 $10,000

2 Paper currency only; $1 silver coins reported under coin,
N o te .—

Condensed from Statement o f United States Currency and
Coin, issued by the Treasury.

KINDS OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION
(Condensed from Circulation Statement o f U nited States Money, issued by Treasury D epartm ent. In millions of dollars)
Held in the Treasury

Kind o f currency

G o ld ........................................
G old certificates...................
Federal Reserve n o te s.........
Treasury currency—T o ta l..

Total, out­
standing, As security
Feb. 29,
against
Treasury
gold and
1972
cash
silver
certificates
9,588
(9,475)
56,759
7,824

D o llars................................
F ractional co in ................
U nited States n o te s. . . . .
In process o f retirement 3

651
6,556
323
294

T otal— Feb. 29, 1972........
Jan. 31, 1972..........
Feb. 28, 1971..........

474,171
4 74,855
4 70,736

(9,475)

(9,475)
(9,875)
(10,464)

1 Outside Treasury and F.R. Banks. Includes any paper currency held
outside the U nited States and currency and coin held by banks. Esti­
mated totals for Wed. dates shown in table on p. A-5.
2 Consists o f credits payable in gold certificates, the Gold Certificate
Fund—Board o f Governors, FRS.
3 Redeemable from the general fund o f the Treasury.




113

For
F.R .
Banks
and
Agents

2 9,474

Currency in circulation 1
H eld by
F.R .
Banks
and
Agents

1972
Feb.
29

Jan.
31

Feb.
28

52,369
7,426

52,041
7,389

48,734
6,876

581
6,193
321
294

482
5,785
312
298

184
72

1
4,206
325

17
54
2

36
289

598
6,214
321
293

4,533
5,046
4,191

59,795

370
505
471

9,474
9,874
10,463

1971

59,429
55,611

4 Does not include all items shown, as gold certificates are secured by
gold. Duplications are shown in parentheses.
N o t e . — Prepared from Statem ent o f U nited States Currency and Coin
and other data furnished by the Treasury. For explanation o f currency
reserves and security features, see the Circulation Statement or the Aug.
1961 B u l l e t i n , p. 936.

APRIL 1972 □ MONEY STOCK

A 17

MEASURES OF TH E MONEY STOCK
(In billions o f dollars)
N o t seasonally adjusted r

Seasonally adjusted r
M onth o r week
Mi
(Currency plus
demand deposits)

Mz
M2
(M i plus time
(M 2 plus deposits
deposits at coml. at nonbank thrift
institutions) 2
banks other than
large time C D ’s) 1

Mi
(Currency plus
demand deposits)

Mx
Mi
(M i plus deposits
(M i plus time
deposits at coml. at nonbank thrift
banks other than
institutions) 2
large tim e C D ’s) 1

1968—D e c
1969—D e c
1970—D e c

197.4
203.7
214.8

378.0
386.8
418.2

572.6
588.3
634.0

203.4
209.8
221.2

383.0
392.0
423.5

577.5
593.4
637.2

1971—M a r
A pr..........
M ay........
Ju n e........
Ju ly .........
Aug.........
Sept.........
O ct..........
N ov.........
Dec..........

219.7
221.2
223.8
225.5
227.4
228.0
227.6
227.7
227.7
228.2

437.1
441.5
446.6
450.6
453.4
45 4 .5
455.6
458.3
460.8
464.7

663.9
672.5
681.0
687.8
693.8
697.6
701.2
706.5
711.6
718.1

217.5
222.3
219.9
223.7
226.0
224.9
226.2
227.5
229.6
235.1

435.7
443.7
443.7
449.1
452.0
451.7
454.3
458.0
461.4
470.2

662.9
675.2
678.2
687.1
693.0
694.5
699.5
705.9
711.4
723.4

1972—Ja n
Feb..........
M ar.p . . .

228.8
231.2
233.6

469.9
475.5
480.1

727.3
737.4
746.0

235.3
229.0
231.3

475.3
472.7
478.7

732.8
734.1
744.9

231.4
232.5
233.9
233.8
233.4

477.3
478.1
480.7
480.1
479.9

228.2
230.4
232.1
231.0
230.4

473.7
476.4
480.2
478.4
478.5

Week ending—
M ar.

1.

8.
15.
22.

29*

COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions o f dollars)
Seasonally adjusted

N ot seasonally adjusted

Commercial banks
M onth
or
week

C ur­
rency

D e­
m and
depos­
its

Commercial banks

Time and savings
deposits
C D ’s 3

Other

Total

N on­
bank
thrift
institu­
tions 4

C ur­
rency

D e­
m and
depos­
its

Time and savings
deposits
C D ’s 3

O ther

N on­
bank
thrift
institu­
tions 4

U.S.
G ovt,
depos­
its 5

Total

1968—Dec......................
1969—Dec......................
1970—Dec......................

43.4
46 .0
49 .0

154.0
157.7
165.8

23.6
11.0
25.5

180.6
183.2
203.4

204.2
194.1
228.9

194.6
201.5
215.8

44.3
46.9
50.0

159.1
162.9
171.3

23.6
11.1
25.8

179.6
182.1
202.3

203.2
193.2
228.1

194.6
201.4
213.6

5 .0
5 .6
7.3

1971

M ar.....................
A pr......................
M ay.....................
June....................
July.....................
Aug.....................
Sept.....................
O ct......................
Nov.....................

50.0
50.5
50.8
51.1
51.6
51.7
51.9
52.2
52.2
52.5

169.7
170.7
173.0
174.5
175.8
176.3
175.7
175.5
175.5
175.7

28.1
27.8
28.5
2 9 .4
30.4
30.8
31.6
32.7
32.2
33.4

217.4
220.3
222.8
225.0
225.9
226.5
228.0
230.6
233.1
236.4

245.4
248.1
251.3
254.4
256.4
257.3
259.6
263.3
265.3
269.9

226.8
231.0
234.4
237.2
240.4
243.1
245.6
248.3
250.8
253.4

49.5
50.1
50.5
51.0
51.9
51.9
51.9
52.2
52.8
53.5

168.0
172.3
169.4
172.7
174.1
173.0
174.3
175.3
176.9
181.5

28.0
27.1
27.6
28.4
29.5
31.2
32.1
33.6
33.7
33.9

218.2
221.4
223.8
225.4
226.0
226.9
228.1
230.5
231.8
235.1

246.2
248.5
251.4
253.8
255.5
258.1
260.3
264.1
265.5
269.0

227.2
231.5
234.5
238.0
241.1
242.8
245.2
247.9
250.0
253.2

5.5
5.5
7 .8
5.3
6.8
6 .8
7.5
5.3
3.9
6.7

1972—Jan......................
Feb......................
M ar.y .................

52.8
53.2
53.7

176.0
178.0
179.9

33.2
33.8
33.4

241.2
244.3
246.5

274.4
278.1
279.9

257.4
261.9
265.9

52.6
52.6
53.2

182.7
176.4
178.1

33.7
33.6
33.3

240.0
243.7
247.4

273.7
277.3
280.7

257.5
261.4
266.1

7.2
7.2
7.7

53.2
53.5
53.7
53.7
53.9

178.2
179 0
180.2
180.1
179.5

33.8
33 7
33 0
3 3 .1
33.7

245.9
245 7
246 8
246 4
246.5

279.7
279 4
279 8
279.5
280.2

52.3
53 4
53 3
53.2
52.9

175.9
177 0
178.8
177.7
177.5

33.8
34.0
32.8
33.0
33.5

245.5
246.0
248.1
247.4
248.0

279.3
280.0
280.9
280.4
281.5

Week ending—
8 .............
15.............
2 2 .............
29'’..........

1 Includes, in addition to currency and demand deposits, savings de­
posits, time deposits open account, and time certificates o f deposits other
than negotiable time certificates o f deposit issued in denominations of
$100,000 o r more by large weekly reporting commercial banks.
2 Includes A/2, plus the average o f the beginning and end o f m onth
deposits o f m utual savings banks and savings and loan shares.
3 Negotiable time certificates o f deposit issued in denominations of
$100,000 o r m ore by large weekly reporting commercial banks.
4 Average o f the beginning and end-of-month deposits o f m utual savings
banks and savings and loan shares.
5 A t all commercial banks.




7.1
6.5
6.5
9.1
9 .0

N o t e . — For description o f revised series and for back data, see pp. 880­
93 o f the November B u l l e t i n .
Average o f daily figures. M oney stock consists of (1) demand deposits
at all commercial banks other than those due to domestic commercial
banks and the U.S. G ovt., 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 all commercial banks. Time de­
posits adjusted are time deposits at all commercial banks other than those
due to domestic commercial banks and the U.S. G ovt.

A 18

BANK RESERVES; BANK CREDIT □ APRIL 1972
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In billions o f dollars)
Deposits subject to reserve requirements 2

M ember bank reserves, S.A. 1

S.A.

Total member
bank deposits
plus nondeposit
item s3

N .S.A .

Period
Total

N on­
borrowed

Dem and
Required
Total

Time
and
savings

Private

U.S.
Govt.

Total

D em and

Time
and
savings

Private

U.S.
Govt.

S.A.

N.S.A.

1968—D ec...............
1969—D ec...............
1970—D ec...............

27.25
27.98
29.13

26.47
26.83
28.76

26.89
27.74
28.92

297.6
285.4
319.0

164.2
150.3
178.8

128.3
129.8
133.8

5.1
5.3
6 .4

301.2
288.8
322.8

163.8
149.7
178.2

133.3
134.6
138.7

4.1
4 .6
6 .0

304.6
305.4
330.6

308.1
308.8
334.4

1971—M ar..............
A pr...............
M ay..............
July...............
Aug...............
Sept..............
Oct................
N ov..............
Dec...............

29.78
29.99
30.33
30.53
30.64
30.74
31.07
30.88
30.97
31.25

29.45
29.86
30.11
30.11
29.91
29.98
30.56
30.48
30.54
31.08

29.59
29.79
30.12
30.33
30.47
30.57
30.91
30.69
30.75
31.10

332.5
336.9
340.4
342.3
345.5
347.1
349.2
349.8
352.7
357.9

191.7
193.6
196.0
198.2
199.8
200.3
202.1
205.2
206.4
210.2

136.8
137.7
139.0
139.8
140.6
141.0
140.5
139.9
140.9
141.5

4 .0
5.6
5 .4
4.3
5.1
5.7
6 .6
4 .7
5.4
6.2

332.2
337.3
338.4
340.2
344.1
344.6
348.2
350.2
351.6
362.2

192.3
193.6
195.8
197.6
198.9
200.8
202.7
205.9
206.9
209.7

135.4
139.0
135.9
138.2
139.4
138.1
139.2
139.9
141.6
146.7

4.5
4.7
6.7
4 .4
5.7
5.8
6.3
4.3
3.2
5.7

339.6
342.0
344.5
346.7
349.8
351.0
353.3
354.7
358.0
361.9

339.2
342.4
342.5
344.7
348.4
348.6
352.2
355.0
357.0
366.2

1972—Jan................
Feb................
M ar.*...........

31.77
31.62
32.04

31.68
31.58
31.94

31.56
31.47
31.83

360.9
363.1
368.4

213.7
216.4
217.4

141.0
142.9
144.9

6.3
3.7
6.1

366.3
363.4
368.0

213.4
215.9
218.1

146.9
141.5
143.4

6 .0
6.1
6.6

364.9
366.7
372.2

370.3
367.1
371.8

1 Averages o f daily figures. M ember bank reserve series reflects actual
reserve requirement percentages with no adjustment to eliminate the
effect o f changes in Regulations D and M. Required reserves were in­
creased by $660 million effective Apr. 16, 1969, and $400 million, effective
Oct. 16, 1969. Required reserves were reduced by $500 million (net)
effective Oct. 1, 1970.
2 Averages o f 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 o f collection
and demand balances due from domestic commercial banks. D ata for

1968 are not comparable with later data due to the withdrawal from the
System on Jan. 2, 1969, o f a large m ember bank.
3 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 ad­
justed bank credit proxy.”
N o t e . — D ue to changes in Regulations M and D , member bank re­
serves 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 o f Governors o f the Federal Reserve
System, W ashington, D.C. 20551.

GROSS LOANS AND INVESTMENTS
(In billions o f dollars)
Seasonally adjusted
D ate

N ot seasonally adjusted

L oans1 plus loans
sold to bank
affiliates3

Securities

Securities
Total i , 2

T o ta l1, 2

L oans1, 2

31...........................
31...........................
30...........................
31...........................
31 4.......................

300 1
316 1
352.0
390.6
402.1

198.2
213 9
231.3
258.2
279.4

57 1
53 5
59.3
61.0
51.5

44 8
48.7
61.4
71.4
71.2

307.6
324.0
360.8
400.4
412.1

203.2
219.0
236.8
264.4
286.1

59.5
56.2
62.5
64.5
54.7

44.9
48.8
61.5
71.5
71.3

283. 3

197 0 -D ec. 31.........................

435.9

292.0

58.0

85.9

446.8

299.0

61.7

86.1

294.9

301.9

1971— M ar.
A pr.
M ay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31.........................
28.........................
26.........................
30.........................
28.........................
25.........................
29*.......................
27*.......................
24*.......................
31*.......................

449.5
452.5
456.1
461.1
463.7
468.4
472.4
476.5
478.4
482.9

296.5
298.2
300.7
5 301.7
304.1
309.7
313.0
316.4
317.5
318.6

61.1
60.7
60.4
62.8
61.6
60.9
59.9
59.1
58.9
60.3

91.9
93.5
95.1
5 96.6
98.0
97.8
99.5
101.0
102.0
103.9

447.7
450.9
453.6
464.8
463.0
466.1
472.0
475.8
478.5
494.9

294.6
296.7
300.0
5 307.1
305.6
309.3
313.4
314.5
316.0
326.3

61.6
60.0
58.8
60.3
59.3
58.7
58.7
60.0
61.1
64.6

91.5
94.2
94.9
5 97.4
98.2
98.1
99.9
101.3
101.4
104.1

299.3
300.9
303.5
5 304.8
307.0
312.4
316.0
319.3
320.3
321.5

297.5
299.4
302.8
5 310.2
308.4
312.0
316.4
317.4
318.8
329.2

1972—Jan. 26*.......................
Feb. 23*.......................
M ar. 29*.......................

489.8
495.0
502.6

324.3
327.1
331.9

59.8
61.1
62.3

105.7
106.8
108.4

488.5
490.8
499.1

321.2
322.9
328.5

62.8
62.0
62.5

104.5
105.9
108.1

327.3
330.0
334.7

324.2
325.8
331.3

1965—Dec.
1966—Dec.
1967 Dec.
1968-D e c .
1969—Dec.

U.S.
Govt.

O ther2

1 Adjusted to exclude domestic commercial interbank loans.
2 Beginning June 9, 1966, about $1.1 billion o f balances accumulated
for payment o f personal loans were deducted as a result of a change in
Federal Reserve regulations.
Beginning June 30,1966, CCC certificates o f interest and Export-Im port
Bank portfolio fund participation certificates totaling an estimated
$1 billion are included in “ O ther securities” rather than “ Loans.”
3 Includes loans sold outright by commercial banks to own subsidiaries,
foreign branches, holding companies, and other affiliates.
4 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




L oans1, 2

U.S.
Govt.

O ther2

S.A.

N.S.A.

290.0

net o f valuation reserves as was done previously. For a description o f the
revision, see Aug. 1969 B u l l e t i n , pp. 642-46. D ata shown in this table
beginning January 1959 have been revised to include valuation reserves.
5 Beginning June 30, 1971, Farm ers Home Administration insured notes
totaling approximately $700 million are included in “ O ther securities”
rather than in “ Loans.”
N o t e . —Series revised. For m onthly data 1959-70, see Dec. 1971 B u l l e ­
t i n , pp. 974-75. For monthly data, 1948-58, see Aug. 1968 B u l l e t i n ,
pp. A-94-A-97. For a description o f the seasonally adjusted series see
the following Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55;
Sept. 1967, pp. 1511—17; and Dec. 1971, pp. 971-73. D ata are for last Wed.
o f m onth except for June 30 and Dec. 31; data are partly or wholly esti­
m ated except when June 30 and Dec. 31 are call dates.

APRIL 1972 o BANKS AND THE MONETARY SYSTEM

A 19

CONSOLIDATED CONDITION STATEM ENT
(In millions o f dollars)
Liabilities

Assets

Other
secu­
rities

Total
assets,
net—
Total
liabil­
ities
and
capital,
net

Total
deposits
and
currency

Capital
and
misc.
ac­
counts,
net

Bank credit
D ate

G old
stock
and
SD R
certifi­
cates 1

Treas­
ury
cur­
rency
out­
stand­

U.S. Treasury securities
Total

Loans
net
2

in g

Total

Coml.
and
savings
■ banks

Federal
Reserve
Banks

O ther3

4

1947—Dec.
1950— Dec.
1967—Dec.
1968—Dec1969—Dec.
1970—Dec.

31.....................
30.....................
30.....................
31.....................
315...................
31.....................

22,754
22,706
11,982
10,367
10,367
11,132

4,562
4,636
6,784
6,795
6,849
7,149

160,832
171,667
468,943
514,427
532,663
580,899

43,023
60,366
282,040
311,334
335,127
354,447

107,086
96,560
117,064
121,273
115,129
127,207

81,199
72,894
66,752
68,285
57,952
64,814

22,559
20,778
49,112
52,937
57,154
62,142

3,328
2,888
1,200
51
23
251

10,723
14,741
69,839
81,820
82,407
99,245

188,148
199,008
487,709
531,589
549,879
599,180

175,348
184,384
444,043
484,212
485,545
535,157

12,800
14,624
43,670
47,379
64,337
64,020

1971_ M a r .
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31.....................
28.....................
26.....................
30.....................
28.....................
25.....................
29*...................
27*...................
24*...................
29?...................

11,100
11,100
10,700
10,732
10,700
10,500
10,500
10,500
10,500
10,500

7,300
7,300
7,400
7,420
7,400
7,500
7,500
7,600
7,600
7,600

586,700
589,300
594,700
608,204
605,300
611,300
617,000
621,500
625,200
642,900

350,100
351,100
355,300
363,301
360,100
365,700
368,100
368,800
369,500
379,600

129,900
128,300
128,100
130,479
129,700
130,000
131,300
133,700
136,500
141,600

65,000
63,400
62,200
63,565
62,800
62,200
62,200
63,400
64,500
67,900

64,200
64,000
64,900
65,518
65,800
66,400
67,600
67,800
69,500
71,200

800
900
900
1,396
1,100
1,400
1,600
2,500
2,500
2,500

106,600
110,000
111,300
114,424
115,400
115,600
117,500
119,000
119,200
121,700

605,100
607,800
612,800
626,356
623,400
629,300
635,000
639,600
643,300
661,000

539,100
544,300
550,400
560,032
559,500
563,500
567,500
570,800
574,300
598,100

66,000
63,400
62,300
66,324
64,000
65,800
67,600
68,800
69,100
62,900

1972—Jan. 26*...................
Feb. 23*...................
Mar. 29*...................

10,500
10,000
10,000

7,700
7,800
7,900

639,900 378,300
639,800 378,900
650,000 384,500

138,700
136,800
138,200

66,200
65,300
65,800

69,900
68,900
69,900

2,500 123,000
2,500 124,200
2,500 127,300

658,100
657,600
667,800

590,100
589,200
602,800

68,000
68,400
65,100

DETAILS OF DEPOSITS AND CURRENCY
M oney stock
Seasonally adjusted 6

Related deposits (not seasonally adjusted)

N o t seasonally adjusted

Tim e

D ate
Total

1947—Dec.
1 9 5 0 -D e c .
1967— Dec.
1968—Dec.
1969—Dec.
1970—Dec.

C ur­
rency
outside
banks

D e­
mand
deposits
ad ­
justed 7

Total

84,400
90,000
141,900
157,000
161,400
161,600

C ur­
rency
outside
banks

D e­
mand
deposits
ad ­
justed 7

Total

U.S G overnm ent

F or­
Postal
eign,
C om ­
M utual Savings
net
10
mercial savings
Sys­
banks 8 banks 9 tem
3

3 1 . .. .
3 0 . .. .
3 0 . .. .
3 1 . .. .
315. . .
3 1 ....

110,500
114,600
181,500
199,600
2 0 6 ,80C
209,400

26,100
24,600
39,600
42,600
45,400
47,800

113,597
117,670
191,232
207,347
214,689
219,422

26,476
25,398
41,071
43,527
46,358
49,779

87,121
92,272
150,161
163,820
168,331
169,643

56,411
35,249
59,246 36,314
242,657 182,243
267,627 202,786
260,992 193,533
302,591 230,622

17,746
20,009
60,414
64,841
67,459
71,969

1971—M ar. 3 1 . . . .
A pr. 2 8 . . . .
M ay 2 6 . . . .
June 3 0 . . . .
July 2 8 . . . .
Aug. 2 5 ___
Sept. 29*. ..
Oct. 27*. . .
Nov. 2 4 * ...
Dec. 2 9 * ...

214,100
207,200
212,400
217,900
213,900
214,700
213,800
215,400
215,800
223,200

49,300 164,800 208,200
48,900 158,300 207,400
49,500 162,900 209,900
50,000 167,900 215,010
50,400 163,500 213,700
50,300 164,400 213,000
50,400 163,400 212,400
51,000 164,400 216,300
51,100 164,700 219,200
51,100 172,100 230,100

48,800
48,500
49,400
50,491
50,500
50,600
50,500
50,900
52,500
52,200

159,400
158,800
160,500
164,519
163,200
162,300
161,900
165,400
166,700
177,800

322,100
324,200
328,400
331,873
334,000
336,300
340,700
343,400
345,800
351,500

247,000
248,300
251,700
253,651
255,800
257,700
261,400
263,600
265,500
270,000

75,100
75,900
76,800
78,222
78,200
78,600
79,400
79,800
80,300
81,600

1972—Jan. 2 6 * ...
Feb. 2 3 * ...
Mar. 2 9 * ...

216,100
219,100
229,000

51,800 164,300 218,900
52,200 166,900 218,000
52,700 176,300 225,700

51,100 167,800 355,600 273,900
51,600 166,400 359,400 277,400
52,200 173,500 364,000 280,700

81,700
82,100
83,300

1 Includes Special Drawing Rights certificates beginning January 1970.
2 Beginning with data for June 30,1966, about $1.1 billion in “ Deposits
accumulated for payment o f 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 fo r Payment o f Personal Loans, p. A-32.
See footnote 1 on p. A-23.
3 After June 30, 1967, Postal Savings System accounts were eliminated
from this Statement.
4 See second paragraph o f note 2.
5 Figures for this and later dates take into account the following changes
(beginning June 30, 1969) for commercial banks: (1) inclusion o f con­
solidated reports (including figures for all bank-premises subsidiaries and
other significant majority-owned domestic subsidiaries) and (2) reporting
o f figures for total loans and for individual categories o f securities on a
gross basis— that is, before deduction o f valuation reserves. See also note 1.
6 Series began in 1946; data are available only for last Wed. o f month.
7 Other than interbank and U.S. Govt., less cash items in process of
collection.




3,416
2,923

Treas­
ury
cash
hold­
ings

At
coml.
At
and
F.R.
savings Banks
banks
1,452
2,989
5,508
5,385
5,273
8,409

870
668
1,123
703
1,312
1,156

2,500
2,300
2,300
2,482
2,500
2,500
2.400
2,500
2,600
2,500

500 5,000
500 8,600
500 8,500
454 8,939
500 7,400
500 10,000
500 9,500
500 6,500
500 4,700
500 11,600

900
1,400
900
1,274
1,400
1,400
2,000
1,700
1,400
2,000

2,400
2,600
2,500

500
400
400

9,800
7,800
9,200

2,900
1,100
900

1,682
2,518
2,179
2,455
2,683
3,148

1,336
1 ,293
1,344
695
596
431

8 See first paragraph o f note 2.
9 Includes relatively small am ounts of demand deposits. Beginning with
June 1961, also includes certain accounts previously classified as other lia­
bilities.
10 Reclassification of deposits o f foreign central banks in M ay 1961 re­
duced this item by $1,900 million ($1,500 million to time deposits and $400
million to demand deposits).
N o t e . —For back figures and descriptions o f the consolidated condition
statement and the seasonally adjusted series on currency outside banks and
demand deposits adjusted, see “ Banks and the M onetary System,” Section
1 of Supplement to Banking and Monetary Statistics, 1962, and B u l l e t i n s
for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti­
mated and are rounded to the nearest $100 million.
F or description of substantive changes in official call reports of
condition beginning June 1969, see B u l l e t i n for Aug. 1969, pp. 642-46.

A 20

COMMERCIAL BANKS □ APRIL 1972
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(Amounts in millions o f dollars)
Loans and investments
Securities

Class o f bank
and date

AH commercial banks:
1941—Dec. 3 1 ...
1945—Dec. 31 . ..
1947—Dec. 31

Total

50,746
124,019
116,284

Loans
U.S.
Treas­
ury

21,714 21,808
26,083 90,606
38,057 69,221

Other

2

Total
assets—
Total
Cash
lia­
assets3 bilities
and
T o tal3
capital
ac­
counts4

Deposits
Interbank3

Other
D em and

D e­
mand

U.S.
G ovt.

10,982
7,225 26,551 79,104 71,283
7,331 34,806 160,312 150,227
14,065
9,006 37,502 155,377 144,103 12,792
240

1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.

3 1 ..
322,661 217,726 56,163
3 0 .. 359,903 235,954 62,473
31 .. 401,262 265,259 64,466
31 ?. 421,597 295,547 54,709
31 .. 461,194 313,334 61,742

48,772
61,477
71,537
71,341
86,118

69,119
77,928
83,752
89,984
93,643

403,368
451,012
500,657
530,665
576,242

352,287
395,008
434.023
435,577
480,940

19,770
967
21,883 1,314
24,747 1,211
27,174
735
30,608 1,975

1971--M a r.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31. .
28. .
2 6 ..
30..
28. .
25. .
29*.
27*.
24 p .
29*.

61,620
60,030
58,770
60,254
59,280
58,720
58,740
60,020
61,140
64,550

91.500
94,160
94,860
97,383
98,150
98.060
99,900
101,340
101,380
103,590

94.350
88,680
84,530
96,141
85,880
85,300
88,180
95,590
95.350
95,830

580,930
578,200
576,610
599,429
587,470
591,080
602,070
610,880
614,570
632,780

483,470
479,640
478,570
503,018
489,140
491,180
497,530
505,960
504,830
524,890

30,640
26,430
24,400
31,313
26,650
26,380
27,050
28,950
28,250
27,020

1972-—Jan. 26*\
Feb. 23?.
Mar. 29».

463,500
467,030
469,010
480,524
478,300
482,230
489,640
491,270
495,560
511,670

310.380
312,840
315.380
322,886
320,870
325.450
331,000
329,910
333,040
343,530

1,990 4,520
2,020 8,150
2,080 7,900
2,207 8,412
2,030 6,790
2,110 9,390
2,500 8,920
2,610 5,940
2,600 4,200
2,650 11,120

198,860
194.310
191,930
206,918
197.310
195,020
197,180
204,350
203,760
213,610

247.460
248,730
252,260
254,168
256,360
258,280
261,880
264,110
266,020
270,490

13,713
13,717
13,720
13,729
13,734
13,739
13,753
13.768
13,776
13,784

182,802
196,849
220,285
242,119
253,936

41,924
46,956
47,881
39,833
45,399

38,960
49,315
56,920
54,785
66,604

60,738
68,946
73,756
79,034
81,500

334,559
373,584
412,541
432,270
465,644

291,063
326,033
355,414
349,883
384,596

18,788
794
20,811 1,169
23,519 1,061
609
25,841
29,142 1,733

4,432
4,631
4,309
4,114
6,460

1971— M ar.
A pr.
M ay
June
July
A ug.
Sept.
Oct.
Nov.
Dec.

31. .
28 ..
26..
30 ..
2 8 ..
2 5 ..
29. .
2 7 ..
2 4 ..
29. .

366,723
368,539
369,182
378,233
376,133
379,269
385,391
386,028
389,468
402.687

250,777
252,040
253,513
259,530
257,988
261,993
266,575
264,847
267,287
276,319

45,193
43,704
42,601
44,038
42,844
42,337
42,369
43,586
44,630
47,130

70,753
72,795
73,068
74,665
75,301
74,939
76,447
77,595
77,551
79,238

83,092
78,152
73,902
84,743
75,342
74,807
77,361
83,963
83,788
84,104

469,355
465,677
462,599
482,225
471,089
473,923
483,064
490,047
492,995
507,884

386,692
382,149
379,887
400,973
388,088
389,558
394,598
401,167
399,678
416,570

29,399
25,278
23,243
29,965
25,436
25,169
25,829
27,616
26,941
25,656

1,749
1,776
1,838
1,980
1,804
1,883
2,274
2,385
2,372
2,418

3,726
6,957
6,663
6,984
5,496
7,907
7,369
4,840
3,317
9,399

140 1,709
64 22,179
50 1,176

397,951 272,452 45,723 79,776 80,580 498,591 411,462 27,230 2,596
400,338 274,508 45,102 80,728 83,258 503,720 413,339 29,738 2,627
409,024 281,182 45,486 82,356 78,710 508,747 413,132 25,154 2,590

1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.

3 1 ..
3 0 ..
31 ..
31 ?
31 ..

46,536
52,141
57,047
60,333
62,347

35,941
39,059
42,968
48,305
47,161

1971— M ar.
Apr.
M ay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31 ..
2 8 ..
2 6 ..
30 ..
2 8 ..
2 5 ..
2 9 ..
2 7 ..
24 ..
2 9 ..

59,912
60,115
59,029
61,059
59,988
60,886
61,997
61,734
61,776
63,429

1972—Jan. 2 6 ..
Feb. 23..
M ar. 2 9 ..

62,539
61,856
64,450

F or notes see p. A-23.




22,130
24,070
23,390
22,547
24,050
24,620
26,850
27,240
30,870
30,960

43.530
43,740
43,910
45,311
44,800
44,980
45,110
45.530
45,710
46,080

9.240 203,950 274.460 26,510 46,560 13,787
7.240 202,620 277,890 29,330 47,000 13.799
8,710 203,800 281,1^0 32,970 47,400 13.799

263.687
293,120
325,086
336,738
365,940

4,072 7,265
7,334 17,574
7,179 11,972

23 7,173 14,278
219 8,950 14,011
65 10,059 14,181
13.767
13,722
13,679
13,661
13,686

3 1 ..
3 0 ..
31 ..
31 7.
31 ..

12,896
26,143
20,393

15,952
30,241
35,360

158,806 4,859 32,054
182,511 5,777 34,384
203,154 8,899 37,006
193,744 18,360 39,978
231,084 19,375 42,958

1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.

Reserve city member:
New York C ity: 8
1941—Dec. 31 ..
1945—Dec. 3 1 ..
1947—Dec. 3 1 ..

Tim e5

167,751
184,066
199,901
208,870
209,335

43,521
107,183
97,846

1972—Jan. 26 ..
Feb. 23 ..
M ar. 29 p .

N um ­
ber
of
banks

Other

44,349
105,921
1,343 94,367

Member of
F.R. System:
1941—Dec. 31 ..
1945—Dec. 31 ..
1947—Dec. 3 1 ..

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

Total
capital
ac­
counts

4,992
5,234
5,010
5,054
7,938

506,410 339,100 62,810 104.500 91,860 622,090 519,020 28,550 2,820
509,540 341,650 61,980 105,910 95,060 628,400 521,730 31,130 2,850
520,000 349.450 62,490 108.060 90.350 635,300 522,990 26,500 2,820

18,021 19,539
22,775 78,338
32,628 57,914

Bor­
row­
ings

37,136
69,640
80,609

12,347
24,210
28,340

5,:
7,589
8,464

6,619
6,884
6,923

138,218
151,980
163,920
169,750
168,032

128,831 4,618 26,278
147,442 5,370 28,098
162,605 8,458 30,060
149,569 17,395 32,047
179,229 18,578 34,100

6,150
6,071
5,978
5,869
5,766

159,983
155,728
153,227
165,827
157,436
155,336
157,000
162,600
161,905
170,172

191,835
192,410
194.916
196,218'
197.916
199,263,
202,126!
203,726
205,143
208,925,

34,658
34,799
34,944
35,822
35,555
35,723
35,827
36,179
36,303
36,562

5,751
5,747
5,742
5,736
5.730
5.730
5.724
5.725
5,729
5,728

7,643 162,307 211,686! 25,429 37,028
5,931 161,031 214,012 28,227 37,340
7,216 161,976 216,196 31,792 37,683

5,718
5.720
5.720

4
208
54

21,107
22,983
22,237
21,700
23,131
23,749
25,843
26,203
29,776
29,855

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

4,920
6,027
5,984
5,048
6,009

5.674
7,055
8,094
6,980
9,177

14,869
18,797
19,948
22,349
21,715

64,424
74,609
81,364
87,753
89,384

51,837 6,370
60,407 7,238
63,900 8,964
62,381 10,349
67,186 12,508

467
741
622
268
956

1,016
1,084
888
694
1,039

26,535
31,282
33,351
36,126
32,235

17,449
20,062
20,076
14,944
20,4481

45,457
45,741
45,441
47,243
46,382
47,659
48,700
47,971
47,626
49,219

5,683
5,316
5,007
5,116
4,837
4,793
4,713
5,
5,582
5,231

8,772
9,058
8,581
8,700
8,769
8,434
8,584
8.675
8,568
8,979

27,111
23,718
19,816
26,200
22,281
21,431
23,254
24,405
23,026
23,043

93.161
89,486
84,885
92,767
88,057
88,217
90.982
91,671
90.162
92,432

71,345
67,750
63,973
73,710
67,319
67,392
68,633
68,923
67,792
70,247

14,672
846
12,261
920
10,254
846
15,221
937
12,062
835
939
11,918
12,471 1,013
13,005 1 086
12,988 1 196
11,618 1,117

573
1,392
1,388
1,199
939
1,564
1,283
710
392
1,977

33,114
30.793
28,552
32,816
29,379
28,578
29,229
29,561
28,785
31,106

48,337
48,221
50,063

5,405
5,190
5,567

8,797 23,684
8,445 23,615
8,820 21,400

91,726
91,094
91,687

71,017 13,443 1.258
69,674 15,152 1.258
68,029 11,674 1,231

1,395
878
1,360

30,660
28,084
28.793

1,648
2,120
2,259

36
37
37

2,733
4,405
4,500

5,298
5,715
6,137
6,301
6,486

22,140'
22,384'
22,933!
23,536
24,104
24,393
24,637
24,561
24,431
24,429

5,741
6,285
6,072
4,531
5.954
6,201
6,818
6,748
6.954
7,'

6,723
6,743
6,797
6,860
7,008
7,078
7,061
7,207
7,257
7,180

24,261
24,302
24,971

5,854
6,906
8,428

7,253
7,306
7,342

12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12

1,874

i ,r -

APRIL 1972 □ COMMERCIAL BANKS

A 21

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions o f dollars)
Deposits

Loans and investments
Securities
and date

Reserve city member (cont.):
City of Chicago: *■9
1941—Dec. 3 1 .............
1945 Dec. 3 1 .............
1947 Dec. 3 1 .............

Total

Loans
l

2,760
5,931
5,088

954
1,333
1,801

U.S.
Treas­
ury

O ther
2

1,430
4,213
2,890 ■

Total
assets—
Total
lia­
Cash
bilities
and
assets3
capital
ac­
counts4

Interbank3

Total

row ­
ings

D em and
T o tal3
D e­
mand

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

N um ­
ber
of
ac­
counts banks

O ther

Time

Time 5
U.S.
Govt.

Other

127
1,552
72

2,419
3,462
4,201

476
719
913

288
377
426

13
12
14

1966—Dec.
1967—Dec.
1968—Dec.
1969—Dec.
1970—Dec.

3 1 .............
3 0 .............
3 1 .............
31 7.........
31.............

11,802
12,744
14,274
14,365
15,745

8,756
9,223
10,286
10,771
11,214

1,545
1,574
1,863
1,564
2,105

1,502
1,947
2,125
2,030
2,427

2,638
2,947
3,008
2,802
3,074

14,935
16,296
18,099
17,927
19,892

12,673
13,985
14,526
13,264
15,041

1,433
1,434
1 ,535
1,677
1,930

25
21
21
15
49

310
267
257
175
282

6,008
6,250
6,542
6,770
6,663

4,898
6,013
6,171
4,626
6,117

484
383
682
1,290
1,851

1,199
1,346
1,433
1,517
1,586

11
10
9
9
9

1971— M ar.
A pr.
M ay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31.............
28.............
26.............
30.............
28.............
25.............
29.............
27.............
24.............
29.............

16,056
15,726
15,853
16,477
16,128
16,346
16,704
16,526
16,651
17,032

11,345
11,051
11,293
11,777
11,724
12,113
12,273
11,93*
11,945
12,203

2,179
1,940
1,677
1,736
1,565
1,528
1,671
1,732
1,78C
1 ,772

2,532
2,735
2,883
2,964
2,839
2,705
2,76C
2,856
2,926
3,057

2,695
3,159
3,011
3,080
3,199
3,089
2,756
3,576
3,856
3,601

19,609
19,874
19,741
20,477
20,233
20,364
20,438
21,049
21,333
21,646

14,665
15,048
14,951
15,636
15,413
15,234
15,571
15,933
15,364
16,340

2,074
1,326
1,300
1,489
1,448
1,365
1,339
1,553
1,431
1,403

130
123
143
85
150
142
191
228
219
226

168
414
419
317
277
380
374
240
102
463

5,598
6,415
6,181
6,648
6,389
5,997
6,028
6,386
6,097
6,706

6,695
6,770
6,908
7,097
7,149
7,350
7,639
7,526
7,515
7,542

1,961
2,304
2,180
2,359
2,489
2,447
1,952
2,462
2,712
2,838

1,635
1,622
1,616
1,637
1,634
1,638
1,649
1,669
1,649
1,661

9
9
9
9
9
9
9
9
9
9

1972—Jan. 2 6 .............
Feb. 23.............
M ar. 29.............

16,614
17,234
17,668

11,901
12,505
12,898

1 ,657
1,576
1,582

3,056
3,153
3,188

3,488
3,311
3,204

21,059
21,489
21,806

15,730
15,791
15,912

1,460
1,509
1,398

213
207
191

378
267
341

6,243
6,305
6,462

7,436
7,503
7,520

2,673
2,935
3,180

1 ,781
1,796
1,820

9
9
9

Other reserve city: *>9
1941 Dec. 3 1 .............
1945 Dec. 3 1 .............
1947 Dec. 3 1 .............

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 9,760
22
405 28,990 11,423

2
1

1,967
2,566
2,844

351
359
353

1966—Dec.
1967 Dec.
1968 Dec.
1969—Dec.
1970 Dec.

3 1 .............
3 0 .............
3 1 .............
31 7.........
31.............

95,831
105,724
119,006
121,324
133,718

24,228
26,867
28,136
29,954
31,263

123,863
136,626
151,957
157,512
171,733

108,804 8,593
120,485 9,374
132,305 10,181
126,232 10,663
140,518 11,317

233
310
307
242
592

1,633
1,715
1,884
1,575
2,547

49,004
53,288
57,449
58,923
59,328

49,341
1,952
55,798 2,555
62,484 4,239
54,829 9,881
66,734 10,391

9,471
10,032
10,684
11,464
12,221

169
163
161
157
156

1971—M ar.
Apr.
M ay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31.............
28.............
26.............
30.............
28.............
25.............
29 .............
27.............
24.............
29.............

134,204 94,302 14,636 25,266 29,361
134,119 94,416 13,830 25,873 28,581
134,244 95,022 13,409 25,813 28,193
137,326 97,061 14,552 25,713 30,901
136,792 97,128 13,487 26,177 26,803
137,513 98,538 13,132 25,843 27,341
140,060 100,339 13,121 26,600 27,832
139,515 98,621 13,810 27,084 30,995
141,421 100,284 14,203 26,934 32,048
148,089 105,081 15,800 27,208 32,244

170,513
169,509
169,420
175,607
170,828
172,142
175,407
177,945
180,956
187,971

138,409 9,791
136,752 9,036
137,136 9,009
142,776 10,166
138,268 9,150
138,865 9,111
140,334 9,237
143,113 10,006
142,820 9,537
151,249 9,524

692
652
714
735
684
667
846
847
733
851

1,592
3,066
2,671
2,954
1,999
3,366
2,982
1,963
1,264
3,935

55,594
53,562
53,519
57,622
54,884
54,235
54,557
56,832
57,068
60,082

70,740
70,436
71,223
71,299
71,551
71,486
72,712
73,465
74,218
76,857

12,474
12,502
12,561
12,826
12,785
12,854
12,922
13,012
13,012
13,164

156
156
156
156
156
156
156
156
156
156

901 3,057 56,144 77,944 13,528 13,427
938 2,492 57,121 78,372 14,927 13,463
944 2,889 57,001 78,099 16,508 13,657

156
156
156

1972

69,464
73,571
83,634
90,896
96,158

13,040
14,667
15,036
11,944
14,700

13,326
17,487
20,337
18,484
22,860

Jan. 26............. 145,436 103,311 14,796 27,329 29,154 182,373 147,352
Feb. 23............. 146,609 104,067 14,768 27,774 30,945 185,420 148,824
M ar. 29............. 149,384 106,665 14,583 28,136 29,082 186,613 147,937

Country member: *>9
1941—Dec. 3 1 .............
1945—Dec. 3 1 .............
1947—Dec. 3 1 .............

12,518
35,002
36,324

5,89C 4,377
5,596 26,999
10,199 22,857

2,250 6,402
2,408 10,632
3,268 10,778

9,306
9,901
9,004

19,466
46,059
47,553

17,415
43,418
44,443

792
1,207
1,056

30
225 10,109 6,258
17 5,465 24,235 12,494
432 28,378 14,560
17

11,044
11,889
11,325
12,153
11,822
12,375
13,927
13,732
16,692
15,647

4
11
23

1,982 6,219
2,525 6,476
2,934 6,519

1966—Dec.
1967 Dec.
1968—Dec.
1969—Dec.
1970—Dec.

3 1 ............. 109,518
3 0 ............. 122,511
3 1 ............. 134,759
317........... 140,715
31............. 154,130

68,641
74,995
83,397
92,147
99,404

22,419
24,689
24,998
21,278
22,586

18,458
22,826
26,364
27,291
32,140

19,004
20,334
22,664
23,928
25,448

131,338
146,052
161,122
169,078
184,635

117,749
131,156
144,682
148,007
161,850

2,392
2,766
2,839
3,152
3,387

69
96
111
84
135

1,474
1,564
1,281
1,671
2,592

56,672
61,161
66,578
67,930
69,806

57,144
65,569
73,873
75,170
85,930

308
552
804
1,820
1,836

10,309
11,005
11,807
12,766
13,807

5,958
5,886
5,796
5,691
5,589

1971— M ar.
Apr.
M ay
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

31.............
28.............
2 6 .............
30.............
28.............
25.............
29.............
27.............
24.............
29.............

156,551
158,579
160,056
163,371
163,225
164,524
166,63(
168,253
169,62C
174,137

99,673
100,832
101,757
103,449
102,754
103,68105,26;
106,317
107,432
109,816

22,695
22,618
22,508
22,634
22,955
22,884
22, 86'
22,956
23,065
24,327

34,183
35,129
35,791
37,289
37,516
37,957
38,503
38,98C
39,123
39,994

23,925
22,694
22,882
24,563
23,059
22,946
23,519
24,987
24,858
25,216

186,072
186,808
188,553
193,374
191,971
193,200
196,237
199,382
200,544
205,835

162,273
162,599
163,827
168,852
167,088
168,067
170,06C
173,198
173,702
178,734

2,862
2,655
2,680
3,087
2,776
2,775
2,782
3,052
2,985
3,111

81
81
135
224
135
135
224
224
224
224

1,393
2,085
2,185
2,512
2,281
2,597
2,730
1,927
1,559
3,024

65,677
64,958
64,975
68,742
66,784
66,526
67,186
69,821
69,955
72,278

92,260
92,820
93,852
94,286
95,112
96,034
97,138
98,174
98,979
100,097

2,361
2,505
2,660
2,656
2,866
2,726
3,146
3,261
3,418
3,462

13,826
13,932
13,970
14,499
14,128
14,153
14,195
14,291
14,385
14,557

5,574
5,570
5,565
5,559
5,553
5,553
5,547
5,548
5,552
5,551

173,362 108,903 23,865 40,594 24,254 203,438 177,363
174,639 109,715 23,568 41,356 25,387 205,717 179,050
177,522 111,556 23,754 42,212 25,024 208,641 181,254

3,021
3,176
3,078

224 2,813 69,260 102,045
224 2,294 69,521 103,835
224 2,626 69,720 105,606

1972—Jan. 26.............
Feb. 23.............
M ar. 29*...........
F or notes see p. A-23.




3,374 14,567 5,541
3,459 14,775 5,543
3,676 14,864 5,543

A 22

COMMERCIAL BANKS □ APRIL 1972
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions o f dollars)
Loans and investments

Classification by
FR S membership
and FD IC
insurance

Insured banks:
Total:
1941—Dec. 3 1 ..
1945—Dec. 31 ..
1947—Dec. 31 ..

Securities
Total

49,290
121,809
114,274

Loans
l

U.S.
Treas­
ury

21,259 21,046
25,765 88,912
37,583 67,941

Other
2

Total
assets—
Total
Cash
lia­
assets3 bilities
and
capital
ac­
counts4

Deposits
Interbank3

O ther

T o tal3

Bor­
row­
ings

D em and
D e­
mand

Time
5

Time

6,984 25,788 76,820 69,411
10, 654
7,131 34,292 157,544 147,775
13, 383
8,750 36,926 152,733 141,851 12,615

Total
capital
ac­
counts

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

N um ­
ber
of
banks

6,844 13,426
8,671 13,297
9,734 13,398

1963—Dec. 20 .. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077
1964—Dec. 31 .. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664
1965—Dec. 31 .. 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
2,580 27,377 13,486
4,325 29,827 13,540

1966—Dec. 31 .. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497
1967—Dec. 30 .. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598
1968—Dec. 31 .. 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

4,717 31,609 13,533
5,531 33,916 13,510
8,675 36,530 13,481

1969—June 307. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889
Dec. 3 1 .. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858

800
695

5,624 192,357 200,287 14,450 38,321 13.464
5,038 207,311 194,237 18,024 39,450 13.464

1970—June 3 0 .. 421,141 294,963 51,248 74,929 84,885 526,484 431,094 26,017
Dec. 31 .. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233

829
1,874

8,040 191,752 204,456 18,215 41,159 13,478
7,898 208,037 231,132 19,149 42,427 13,502

1971—June 30.. 478,302 321,575 59,991 96,735 95,181 595,819 501,283 30,953

2,166

8,391 205,736 254,036 22,297 44,816 13,547

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

11,725 12,039
13,925 51,250
21,428 38,674

3, soel 14,977
4,137, 20,144
5,178' 22,024

43,433
90,220
88,182

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! 50,953 296,594 257,884 15,117

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

437
652
657

3,035 96,755 93,642
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—June 307. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324
Dec. 31 .. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299

437
361

3,534 113,134 120,060 9,895 22,628
3,049 121,719 114,885 12,279 23,248

4,700
4,668

1970—June 3 0 .. 247,862 176,376 28,191 43,295 51,942 312,480 254,261 14,947
Dec. 3 1 .. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051

393
982

5,066 113,296 120,559 13,051 24,106
4,740 122,298 137,592 13,100 24,868

4,637
4,620

1971—June 30.. 281,830 192,339 33,759 55,732 57,244 352,807 294,025 16,575

1,441

5,118 121,096 149,795 15,629 25,999

4,598

1963—Dec. 2 0 ..
1964—Dec. 31 ..
1965—Dec. 31 ..

27,571
69,312
65,280

15,950
37,871
32,566

6,295 7,500
8,850 27,089
11,200 19,240

1
2,155: 8,145
1 ,9331 9,731
2,125 10,822

24,688
48,084
43,879

22,259
44,730
40,505

3, 739
4, 411
3,978

1963—Dec. 2 0 ..
1964—Dec. 31 ..
1965—Dec. 31 ..

72,680
77,091
74,972

46,866 15,958 9,855 15,760
51,002 15,312 10,777i 18,673
51,262 12,645 11,065, 15,934

91,235
98,852
93,640

78,553
86,108
81,657

1966—Dec. 3 1 ..
1967—Dec. 3 0 ..
1968—Dec. 3 1 ..

77,377
85,128
89,894

54,560 11,569 11,247, 19,049 99,504
58,513 12,649 13,966! 22,312 111,188
61,965 12,581 15,348 22,803 116,885

1969—June 30?.
Dec. 3 1 ..

88,346
90,088

64,007 9,902 14,437^ 26,344 119,358
65,560 10,257 14,271 24,313 119,219

1970—June 3 0 ..
Dec. 31 ..

88,404
94,760

1971—June 30..

96,939

State member:
1941—Dec. 31. .
1945—Dec. 31 ..
1947—Dec. 31 ..

15

621
8,166
381

13,874
24,168
27,068

4,025
7,986
9,062

1
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

93,858
94,445

9,773
9,541

285
248

1,341
1,065

45,152
48,030

37,307
35,560

4,104
5,116

8,689
8,800

1,236
1,201

64,439 9,133 14,832' 23,598 117,209 91,967 10,175 ^
66,963 11,196 16,600 25,472 125,460 101,512 11,091

299
750

1,891
1,720

42,620
45,734

36,983
42,218

4,457
5,478

9,078
9,232

1,166
1,147

67,726 10,279 18,934 27,499 129,955 107,484 13,389

539

1,865

44,731

46,959

6,071

9,823

1,138

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

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

2,668
4,448
4,083

8,708
19,256
20,691

7,702
18,119
19,340

129
244
262|

(963—Dec. 20.
1964—Dec. 31.
1965—Dec. 31.

42,464
46,567
52,028

2 3 ,55C 13,391
26,544 13,79(
30,31C 14,13"

5,523
6,233
7,581

5,942
7,174
7,513

49,275
5 4,74'
60,67$

44,280
49,389
54,806

555
65*
69 5

61
7C
83

726
649
618

23,140
25,504
27,528

19,793
22,509
25,882

12
99
91

4,234
4,488
4,912

7,173
7,262
7,320

1966—Dec. 31.
1967—Dec. 30.
1968—Dec. 31.

56,857
64,449
73,553

33,63(
37,67.
43,378

13,87: 9,349
1 5 ,14( 11,629
16,15. 14,020

7,777
8,403
9,305

59,434
65,92
74,328 67,107
84,60 > 76,368

7091
786
9081

8"
89
94

543
588
691

28,471
31,004
34,615

29,625
3 4 ,64(
4 0 ,06()

99
162
21'

5,342
5,83(
6,48; .

7,384
7,440
7,504

1969—June 307
Dec. 31.

78,032
82,132

48,358
51,64

14,34 15,333 8 ,69(
14,56 5 15,925 10,056

78,61C
8 3 ,38C

791
1,017

78
8.

745 34,07(
92'1 37,56

42,92
43,79. >

45
629

7 ,00' I
7,40

7,528
7,595

1970—June 30.
Dec. 31.

84,875
92,39$

5 4 ,1 4S) 13,92'I 16,802 9,34( 96,79'I 84,865
57,485) 16,035) 18,871 11,208 106,45'1 93,998

894
1,091

13­r
14

1,08
1,438i

35,83'
40,00.

46,91 I
51,32 I

708
57

7,97.
7,675
8,32<S 7,735

1971—June 30.

99,53:

61,50<) 15,95 i 22,070 10,435) 113,05 3

989

18 5

1,40*)

39,90 S 57,28 J

597

8,99 J

For notes see p. A-23.




88,80:.
94,45

99,77-:

7,811

APRIL 1972 □ COMMERCIAL BANKS

A 23

PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(Amounts in millions of dollars)
Loans and investments
Classification by
FRS membership
and FD IC
insurance

Securities
Total

Loans
l

U.S.
Treas­
ury

Other
2

Total
assets—
Total
Cash
lia­
assets3 bilities
and
capital T o tal3
ac­
counts *

Deposits
Interbank3

O ther
D em and

D e­
mand

Time
U.S.
Govt.

Noninsured
nonmember:
1941—Dec. 31...........
1945—Dec. 31...........
1947—Dec. 31«.........

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

3 9
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 7........
Dcc. 31...........

2,809
2,982

1,800
2,041

321
310

688
632

898
895

3,942
4,198

2,556
2,570

1970—June 30...........
Dec. 31...........

3,043
3,079

2,073
2,132

321
304

650
642

746
934

4,140
4,365

1971—June 3 0 .........

2,968

2,057

263

648

960

4,356

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 10,992 9,573
4,962 22,024 20,571
4,659 23,334 21,591

45 7
425
439

1963—Dec. 20...........
1964—Dec. 31...........
1965—Dec. 31...........

44,035 24,295
48,879 27,899
54,483 31,858

13,854
14,273
14,555

5,885
6,707
8,070

6,316 51,304 45,743
7,752 57,780 51,447
8,085 63,879 56,919

1967—Dec. 30...........
1968—Dec. 31...........

67,087 39,409
76,454 45,253

15,516
16,585

12,162
14,617

1969—June 30 7........
Dec. 31...........

80,841
85,115

1970—June 30...........
Dec. 31...........

Total
capital
ac­
counts

Time
5

N um ­
ber
of
banks

O ther

i 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

2,280
2,570

321
375

69
101

36
40

1,247
1,298

606
756

331
226

549
532

193
184

2,480

360

41

20

1,182

877

250

495

182

190

5,5 04
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

749
931
972

144
156
168

743 23,972 20,134
672 26,645 23,043
635 28,649 26,495

165
198
238

4,623
4,894
5,345

7,458
7,536
7,583

8,983 77,732 69,279
9,997 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

50,159
53,683

14,662 16,021 9,594 92,743 81,166
14,875 16,556 10,950 98,651 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

87,919 56,222
95,478 59,621

14,245 17,452 10,092 100,934 87,145
16,342 19,514 12,143 110,822 96,568

1,215
1,466

207
243

1,119 37,084 47,520 1,038
1,478 41,303 52,078
796

8,523
8,858

7,868
7,919

16,216 22,718

1,348

227

1,429 41,091

9,489

7,993

1971—June 3 0 ......... 102,500 63,566

11,398 117,414 102,254

1 Beginning June 30, 1966, loans to farmers directly guaranteed by
CCC were reclassified as securities, and Export-Im port Bank portfolio
fund participations were reclassified from loans to securities. This reduced
Total loans and increased “ O ther 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-24.
Beginning June 30, 1971, Farmers Home Administration notes are
classified as “ O ther securities” rather than “ Loans.” As a result o f this
change, approximately $700 million was transferred to “ Other securities”
fo r the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom o f p. A-32.
2 See first two paragraphs o f note 1.
3 Reciprocal balances excluded beginning with 1942.
* Includes items not shown separately. See also note 1.
5 See last paragraph o f note 1.
6 Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, M ay 1964 B u l l e t i n .
7 Figure takes into account the following changes beginning June 30,
1969: (1) inclusion o f consolidated reports (including figures for all bankpremises subsidiaries and other significant majority-owned domestic
subsidiaries) and (2) reporting o f figures for total loans and for individual
categories o f securities on a gross basis—th at is, before deduction of
valuation reserves—rather than net as previously reported.
8 Regarding reclassification as a reserve city, see Aug. 1962 B u l l e t i n ,
p. 993. F o r various changes between reserve city and country status in
1960-63, see note 6, p. 587, M ay 1964 B u l l e t i n .




Bor­
row­
ings

185

58,160

847

9 Beginning Jan. 4, 1968, a country bank with deposits o f $321 million
was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve
city bank in Chicago with total deposits o f $190 million was reclassified as
a country bank.
N o t e . —D ata are for all commercial banks in the United States (includ­
ing Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both m ember and nonm em ber; stock savings
banks; and nondeposit trust companies.
F or the period June 1941-June 1962 m ember 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
m ember bank engaged exclusively in trust business.
Comparability of figures for classes o f 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.
D ata 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 24

COMMERCIAL BANKS □ APRIL 1972
LOANS AND INVESTMENTS BY CLASS OF BANK
(In millions o f dollars)
O ther loans *

Class o f
bank and
call date

Total
Fed­
loans1 eral
and
funds
invest­ sold,
ments etc. 2

Total: 2
1947—Dec. 31 .. 116,284

Total
3 .4

Investments

Fo r
To
U.S. Treasury
purchasing
financial
securities 6
o
r
carrying
Com ­
institutions
O
ther,
mer­ Agri- securities
to
Real
cial c u l­
es­
in- Other
5
and
tu r­ To
tate
diin­
al 5 bro­
Bills
viddus­
kers T o
uals3
Banks Others
Total and Notes Bonds
trial
and others
certifi­
cates
deal­
ers

38,057 18,167 1,660

830 1,220

115

9,393

5,723

947 69,221 9,982 6,034 53,205 5,276 3,729

1969—Dec. 3110 422,728 9,928 286,750 108,443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 54,709
1970—Dec. 3 1 .. 461,998 16,241 297,897 112,486 11,155 6,332 3,536 2,660 15,855 72,492 65,807 7,574 61,742
1971—June 30. 481,270 15,663 307,969 114,362 12,226 5,634 3,493 2,844 16,958 75,777 69,149 7,527 60,254
All insured:
1941—Dec. 3 1 .. 49,290
1945—D ec. 3 1 .. 121,809
1947—Dec. 3 1 .. 114,274

21,259 9,214 1,450 614 662
25,765 9,461 1.314 3,164 3,606
37,583 18,012 1,610 823 1,190

59,183 12,158
69,637 16,481
77,994 19,389

21,046
988 3,159 16,899 3,651 3,333
4,773
4,505
4,677 2,361 1,132 “ ,912 21,526 16,045 51,342 3,873 3,258
9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621

40
49
114

1969—Dec. 31 io 419,746 9,693 284,945 107,685 10.314 5,644 3,991 2,425 14,890 69,669 63,008 7,319 54,399
1970—Dec. 3 1 .. 458,919 15,942 296,064 111,540 11,141 6,207 3,516 2,581 15,713 72,302 65,556 7,507 61,438
1971—June 30. 478,302 15,381 306,194 113,411 12,211 5,555 3,480 2,718 16,825 75,615 68,942 7,437 59,991
Member—rT o ta l:
1941—D ec. 3 1 .. 43,521
1945—Dec. 3 1 .. 107,183
1947—Dec. 3 1 .. 97,846

972
18,021 8,671
594 598
22,775 8,949
855 3,133 3,378
32,628 16,962 1,046 811 1,065

58,840 11,869
69,301 16,174
77,687 19,048

971 3,007 15,561 3,090 2,871
19,539
3,494
3,653
3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815
7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105

39
47
113

1969—Dec. 31 io 337,613 7,35<6235 ,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6.776 39,833
1970—Dec. 3 1 .. 366,520 12,677 241,840 97,954 6,538 5,963 3,028 2,345 14,688 54,600 49,829 6,895 45,399
1971—June 30. 378,769 12,026 248,040 98,573 7,094 5,333 3,024 2,496 15,770 56,934 52,037 6.777 44,038
New York C ity:
1941—Dec. 31 .. 12,896
1945—Dec. 3 1 .. 26,143
1947—Dec. 31
20,393

4,072 2,807
7,334 3,044
7,179 5,361

1969—Dec. 31 io 60,333
1970—Dec. 31. 62,347
1971—June 30 61,059

802 47,503 28.189
774 46,386 27.189
996 46,247 26,948

3,695
4,174
3,822

686

2,760
5,931
5,088

954
732
1,333
760
1,801 1,418

48
211
73

52
233
87

1969—Dec. 3U « 14,365
1970—Dec. 3 1 .. 15,745
1971—June 30. 16,477

215 10,556 6,444
475 10,739 6,502
612 11,164 6,515

337
356
373

262
191
245

Other reserve city:
1941—Dec. 31 .. 15,347
1945— Dec. 31 .. 40,108
1947— Dec. 3 1 .. 36,040

7,105 3,456
8,514 3,661
13,449 7,088

City o f Chicago:
1941—Dec. 31 ..
1945—Dec. 31
1947—Dec. 31 ..

412
169
2,453 1,172
545 267

114 194
427 1,503
170 484

1969—Dec. 31 io 121,628 3,021 88,180 37,701 1,386
1970—Dec. 3 1 .. 133,861 6,007 90,293 38,627 1,428
1971—June 30. 137,451 5,010 92,176 38,189 1,601

878 1,300
909 1,322
786 1,419

Country:
1941— Dec. 31 .. 12,518
1945—Dec. 31. 35,002
1947— Dec. 31. 36,324

659
648
818

20
42
23

183
471
227

1969—Dec. 31 141,286 3,318 89,401 23,762 4,739
1970—Dec. 3 1 .. 154,568 5,420 94,421 25,637 5,052
1971—June 30. 163,782 5,407 98,452 26,922 5,433

498
524
352

947
828
723

Nonmember:
1947— Dec. 31.

5,890 1,676
5,596 1,484
10,199 3,096

614

20

156

1969— Dec. 311 85,115 2,572 51,111 12,348 4,141
1970—Dec. 31 .. 95,478 3,564 56,058 14,532 4,617
1971—June 30. 102,500 3,638 59,929 15,789 5,131

329
369
301

741
507
468

18,454

5,432 1,205

1 Beginning with June 30, 1948, figures for various loan items are
shown gross (i.e., before deduction o f 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, they 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 fo r Payment o f Personal
Loans, p. A-32.




32
26
93

123
80

111

47,227 7,558
55,662 10,942
61,963 12,702

7,265
311 1,623 5,331
522
287 272 17,574 3,910 3,325 10,339
558 9,772
564 238 11,972 1,642

776 1,047 4,547 3,835 3,595 1,807 5,048
1,169 3,741 3,883 3,907 1,622 6,009
637 1,106 4,210 4,202 3,916 1,385 5,116

300
205
225

22
36
46
186 1,219
138 1,284
218 1,465
4
17
15

State
and
local O ther
govt. secu­
secu­ rities5
rities

95
51
149

842
862
864 1,015
861 1,078
1,527
1,459
3,147

1,430
40 4,213
26 2,890

256
1,600
367

153 1,022
749 1,864
248 2,274

354 1,564
346 2,105
367 1,736

751 5,421
6,467
295
1,508
855 387 29.552 8,016 5,653 15,883
1,969 351 20,196 2,731 1,901 15,563

182
181
213

193
204
185

1,837
2,055
2,580

192
372
384

956 820
1,126 916
1,342 1,053
16,625 1,859
19,771 3,089
22,409 3,304

110 481 3,787 1,222 1,028
4,377
1,528
707 359 26,999 5,732 4,544 16,722 1,342 1,067
1,979 224 22,857 3,063 2,108 17,687 2,006 1,262

148 2,263 28,824 26,362 1,858 21,278
239 2,648 30,005 27,585 1,903 22,586
279 2,577 31,148 29,113 1,905 22,634
2,266

830
629
604

6,192 788
7,757 1,420
7,298 1,401

876 6,006 19,706 17,569 2,757 11,944
798 7,015 19,848 17,322 3,024 14,700
893 7,517 20,722 17,929 3,120 14.552
1,823
1,881
3,827

729
606
638

1,061

231 1,028 16,813 14,868
316 1,168 17,891 15,978
348 1,187 18,843 17,112

109 11,318 2,179
612 14,875
679 16,342
749 16,216

22,572 4,718
26,079 6,062
29,675 7,614
1,219 7,920

1,073

625

11,956 4,600
13,975 5,538
16,031 6,687

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-20—A-23.
5 Beginning with June 30, 1966, loans to farmers directly guaranteed
by CCC were reclassified as “ Other securities,” and Export-Im port 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.
F or other notes see opposite page.

APRIL 1972 □ COMMERCIAL BANKS

A 25

RESERVES AND LIABILITIES BY CLASS OF BANK
(In millions o f dollars)
Time deposits

D em and deposits
Class o f
bank and
call date

T o tal: 3
1947—Dec. 3 1 . . . .

R e­
serves
with
F.R .
Banks

Bal­
ances

D e­
mand

C ur­
rency
and
do­
posits
coin mestic
ad­
banks7 justed 8

17,796 2,216 10,216 87,123

Certi-

Interbank
State
and
local
govt.

U.S.
D o­
F o r­ Govt.
mestic7 eign9

11,362

1,430

1,343

1969—Dec. 31 * o .. 21,449 7,320 20,314 172,079 24,553 2,620 5,054
1970—Dec. 3 1 . . . . 23,319 7,046 23,136 173,912 27,442 3,166 7,938
1971—June 3 0 . . . 24,066 7,634 21,546 168,263 28,699 2,614 8,412
All insured:
1941—Dec. 3 1 ... .
1945—Dec. 31 ___
1947—Dec. 3 1 . . . .

12,396 1,358 8,570 37,845
15,810 1,829 11,075 74,722
17,796 2,145 9,736 85,751

9,823
12,566
11,236

673 1,762
1,248 23,740
1,379 1,325

6,799

12,396
15,811
17,797

1,087
1,438
1,672

6,246 33,754
7,117 64,184
6,270 73,528

9,714
12,333
10,978

671 1,709
1,243 22,179
1,375 1,176

1969—Dec. 31 io. . 21,449 5,676 11,931 133,435 23,441 2,399 4,114
1970—Dec. 3 1 . . . . 23,319 5,445 13,744 133,169 26,260 2,882 6,460
1971—June 3 0 . . . 24,066 5,870 12,971 127,670 27,605 2,360 6,983
New York C ity:
1941— Dec. 31___
1945— Dec. 3 1 . . . .
1947—Dec. 3 1 . . . .

5,105
4,015
4,639

93
111
151

141 10,761
78 15,065
70 16,653

1969—Dec. 31 *<>..
1970—Dec. 3 1 . . . .
1971—June 3 0 . . .

4,358
4,683
4,716

463
436
466

455 21,316
1,308 19,770
1,193 15,264

City o f Chicago:
1941 Dec. 31___
1945 Dec. 31___
1947—Dec. 31___

1,021
942
1,070

43
36
30

298
200
175

2,215
3,153
3,737

1969—Dec. 31 !<>..
1970—Dec. 31___
1971—June 3 0 . . .

869
1,148
991

123
126
126

150
160
247

Other reserve city:
1941—Dec. 3 1 . . . .
1945— Dec. 31___
1947—Dec. 3 1 . . . .

4,060
6,326
7,095

1969—Dec. 3110..
1970—Dec. 3 1 . . . .
1971—June 3 0 . . .
Country:
1941—Dec. 31 . . . .
1945— Dec. 3 1 ___
1947—Dec. 3 1 . . . .
1969—Dec. 31 *o..
1970—Dec. 31 . ,
1971—June 3 0 . . .

2,581

17,558 11,899
17,763 8,540
17,276 11,949
3,677
5,098
6,692

1969—Dec. 31 *<>.. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434
1970—Dec. 31___ 23,319 7,028 22,332 172,351 27,235 2,998 7,898 17,636
1971—June 3 0 .. . 24,066 7,610 20,748 168,860 28,519 2,434 8,392 17,185
Member—T o tal:
1941—Dec. 31___
1945—Dec. 31___
1947— Dec. 3 1 ___

and
offi­
cers’
checks,
etc.

3,066
4,240
5,504

1,077
2,585
2,559

IP C

84,987

U.S.
Govt. State
and
Inter­ and
bank Postal local
Sav­ govt.
ings

240

179,413
735
183,032 1,975
177,692 2,207
36,544
72,593
83,723

158
70
54

11,476 178,401
695
8,352 182,048 1,874
11,736 176,815 2,166
1,009
2,450
2,401

33,061
62,950
72,704

140
64
50

13,274 10,483 145,992
609
13,250 7,309 147,473 1,733
12,953 10,654 142,220 1,980

111

59
103
111

50
99
105

11,282
15,712
17,646

6
17
12

8,708 1,641
694
10,283 2,225 1,039
13,504 1,717 1,199

1,168
1,171
789

6,605
3,286
6,032

28,354
27,779
25,994

268
956
937

1,027
1,292
1,196

8
127
20 1,552
72
21

233
237
285

34
66
63

2,152
3,160
3,853

5,221
5,120
5,044

1,581
1,853
1,439

96
77
51

175
282
318

268
240
352

229
210
211

6,273
6,213
6,084

15
49
85

3

425
494
562

2,590 11,117
2,174 22,372
2,125 25,714

4,302
6,307
5,497

54
491
110 8,221
131
405

1,144
1,763
2,282

286
611
705

11,127
22,281
26,003

104
30
22

20
38
45

9,044
9,710
10,394

1,787
1,748
1,822

3,456 44,169
3,731 44,093
4,069 43,872

10,072
10,805
9,631

590 1,575
512 2,547
535 2,954

3,934
3,793
3,716

1,928
2,035
2,455

53,062
53,499
51,451

242
592
735

2,210
4,527
4,993

526
796
929

3,216 9,661
4,665 23,595
3,900 27,424

790
1,199
1,049

2
225
8 5,465
432
7

1,370
2,004
2,647

239
435
528

8,500
21,797
25,203

30
17
17

7,179 3,302
7,778 3,135
7,964 3,455

7,870 62,729
8,544 64,185
7,461 63,490

3,080
3,319
3,031

72 1,671
68 2,592
56 2,513

7,905
8,045
8,095

1,721
1,779
1,956

58,304
59,982
58,691

84
135
223

55

1,295

180

12,284

190

222
940 4,284 1,416
284 1,478 1970—Dec.
4,513
1,230
31
254 1,429 4,323
1,295

33,420
35,560
35,472

126
243
227

544
1,644
1,602
1,765

3,947

13,595

385

8,383 38,644
9,392 40,743
8,576 40,593

1,112
1,182
1,094

167

7 Beginning with 1942, excludes reciprocal bank balances.
* Through 1960 dem and deposits other than interbank and U.S.
G ovt., less cash items in process o f collection; beginning with 1961,
demand deposits other than domestic commercial interbank and U.S.
G ovt., less cash items in process o f collection.
9 F o r reclassification o f certain deposits in 1961, see note 6, p. 589,
M ay 1964 B u l l e t i n .
10 Beginning June 30,1969, reflects (1) inclusion o f consolidated reports
(including figures for all bank-premises subsidiaries and other significant
majority-owned domestic subsidiaries) and (2) reporting o f figures for
total loans and for individual categories o f securities on a gross basis—that
is, before deduction o f valuation reserves. See also notes 1 and 6.




65 10,059

492 15,146
496 29,277
826 33,946

10 6,844
215 8,671
61 9,734

418 11,878
399 23,712
693 27,542

4 5,886
208 7,589
54 8,464

186 9,951 140,308 17,395 32,047
406 18,406 160,998 18,578 34,100
462 20,534 175,757 21,700 35,822

450
1,338
1,105

1969—Dec. 3110..
___
1971—June 3 0 . . .

866 34,383

211 13,166 180,860 18,024 39,450
462 23,150 207,519 19,149 42,427
517 26,132 227,387 22,297 44,816

319
237
290

Nonmember:3
1947—Dec. 31 ___

IP C 3

211 13.221 181,443 18,360 39,978
463 23,225 208,201 19,375 42,958
517 26.221 228,176 22,547 45,311

607
866
1,105 6,940
1,217
267

3,595
3,535
3,236

Capi­
tal
ac­
ings counts

Bor­

10
12

29
20
14

778
1,206
1,418

1,648
195 2,120
30 2,259

207 14,692 4,405 6,301
45
71 1,464 18,913 4,500 6,486
68 1,896 21,572 4,531 6,860

2

9

1

216
568
741

476
719
902

288
377
426

4,409 1,290 1,517
5,549 1,851 1,586
6,353 2,359 1,636

243 4,542
160 9,563
332 11,045

1,967
2 2,566
1 2,844

86 4,609 50,439 9,881 11,464
222 8,489 58,165 10,391 12,221
249 8,863 62,312 12,153 12,826
31
52
45

146 6,082
219 12,224
337 14,177

4 1,982
11 2,525
23 2,934

54 4,920 70,768 1,820 12,766
112 7,885 78,370 1,836 13,807
143 9,033 85,521 2,656 14,499
6

172

6,858

12 1 596

25 3,269 41,135
57 4,819 47,200
55 5,688 52,419

965 7,931
796 8,858
847 9,489

N o t e . —D ata 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 m ember bank for the period
June 30, 1969—June 30, 1970.
Comparability o f figures for classes of banks is affected somewhat by
changes in F.R. membership, deposit insurance status, and the reserve
classifications o f cities and individual banks, and by mergers, etc.
For other notes see opposite page.

A 26

WEEKLY REPORTING BANKS □ APRIL 1972
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Loans
Federal funds sold, etc. i

Wednesday

O ther

To brokers
and dealers
involving—

Total
loans
and
invest­
ments
Total

To
com ­
mer­
cial
banks

U.S.
Treas­
ury
se­
curi­
ties

F or purchasing
o r carrying securities

To
others

Total

Other
securi-

Com ­
mer­
cial
and
indus­
trial

To brokers
and dealers
Agri­
cul­
tural

U.S.
Treas­
ury
secs.

Other
secs.

To nonbank
financial
institutions

To
others

U.S.
Treas­
ury
secs.

Other
secs.

Pers.
and
sales
finan.

Other

C OS.,

etc.
Large banks—
Total
1971
M ar.

3 ...............
10................
17................
2 4 ................
31................

259,537
258,016
259,619
257,906
260,047

9,022
7,787
8,278
7,440
8,287

7,825
6,459
7,323
6,539
6,884

822
907
495
537
880

335
326
360
290
390

100

175,775
175,175
176,146
74 175,778
133 176,251

81,068
81,188
81,794
81,419
81,162

40
95

2,035
2,028
2,033
2,038
2,048

1,284
788
822
872
854

3,694
3,754
3,676
3,515
3,970

132
107
126
106
93

2,345
2,359
2,354
2,347
2,339

6,781
6,588
6,746
6,721
7,009

5,990
6,007
6,148
6,159
6,261

1,106
964
624
771

5,093
4,926
5,225
5,388

161
163
179
182

2,484
2,495
2,510
2,499

6,035
6,135
6,184
6,196

7,809
7,862
7,929
7,967

1,031
900
1,118
869
683

6,026
5,802
6,270
6,141
6,152

190
175
186
174
169

2,518
2.542
2,555
2.543
2,522

6,336
6,090
6,533
6,350
6,412

8,061
8,039
8,212
8,291
8,361

1972
Feb.

2 ................
9 ...............
16...............
2 3

281,037
280,464
281,544
281,250

10,718 9,633
10,958 10,128
11,625 10,995
10,496 9,568

723
515
386
582

227
207
177
238

135 189,771
108 189,478
67 190,115
108 190,667

82,047
82,082
82,581
82,490

M ar.

1*.............
8p..........
15*..........
22* ..........
29".............

283,969
283,777
288,182
287,254
288,161

10,755
9,919
11,531
11,475
11,892

9,694
8,932
10,445
10,350
10,988

650
734
725
670
490

172
272
228
240

220

191
81
89
227
174

192,213
191,742
194,387
193,952
194,777

82,597
82,702
83,517
83,462
83,795

57,412
56,197
56,974
55,849
56,048

1,467
551
1,367
646
390

1,395
456
1,291
610
363

42,975
42,390
42,613
42,334
42,419

25,734
25,746
25,825
25,716
25,591

1,059
614
647
695
601

2,391
2,480
2,412
2,247
2,702

615
618
617
613
601

2,176
1,973
2,094
2,067
2,190

1,459
1,464
1,478
1,456
1,463

44
7
31

21

44,309
44,155
44,311
44,610

25,067
25,158
25,324
25,107

923
800
490
650

3,382
3,266
3,431
3,575

607
608
619
611

1,698
1,779
1,819
1,923

1,779
1,803
1,850
1,892

42
19
32
130
119

45,498
44,856
46,320
45,578
46,002

25,044
25,076
25,458
25,337
25,460

834
736
930
709
570

4,116
3,846
4,094
4,005
4,152

610
616
628
629
621

2,042
1,809
2,176
2,012
2,075

1,922
1,941
2,007
1,979
2,045

2,350
2,364
2,372
2,393
2,396

New York City
1971
M ar.

3...............
10...............
17...............
2 4
31...............

Feb.

2 ...............
9
16...............
2 3

59,227
58,440
58,493
58,202

1,340
980
1,492
669

1,319
936
1,437
638

1*.............

59,878
59,406
61,465
60,959
60,867

933
615
1,396
1,456
1,173

891
567
1,339
1,326
995

55

202,125
201,819
202,645
202,057
203,999

7,555
7,236
6,911
6,794
7,897

6,430
6,003
6,032
5,929
6,521

765
861
434
511
878

335
326
360
290
376

25
46
85
64

122

132,800
132,785
133,533
133,444
133,832

55,334
55,442
55,969
55,703
55,571

2,018
2,011
2,016
2,021
2,031

225
174
175
177
253

1,303
1,274
1,264
1,268
1,268

115
89
106
84
71

1,730
1,741
1.737
1,734
1.738

4,605
4,615
4,652
4,654
4,819

4,531
4,543
4,670
4,703
4,798

6,030
6,059
6,079
6,075
6,139
6,098
6,205
6,312
6,316

1972

M ar.

8*..........

15 p .............
22*.............
29*>.............

48

Outside
New York City
1971
M ar.

3 ...............
1 0
17...............
2 4
31...............
1972

Feb.

2 ...............
9 ...............
1 6
23...............

221,810
222,024
223,051
223,048

9,378
9,978
10,133
9,827

8,314
9,192
9,558
8,930

723
515
338
582

227
207
177
238

114
64
60
77

145,462
145,323
145,804
146,057

56,980
56,924
57,257
57,383

2,287
2,294
2,290
2,306

183
164
134

121

1,711
1,660
1,794
1,813

113
114
130
130

1,877
1,887
1,891

U

4.337
4.356
4,365
4,273

M ar.

1*.............

224,091
224,371
226,717
226,295
227,294

9,822
9,304
10.135
10,019
10,719

8,803
8,365
9,106
9,024
9,993

650
705
700
670
435

220

149
62
57
97
55

146,715
146,886
148,067
148,374
148,775

57,553
57,626
58,059
58,125
58,335

2,323
2,337
2.345
2,365
2,368

197
164
188
160
113

1,910
1,956
2,176
2,136
2,000

136
127
135
125

1,908
1.926
1.927
1,914
1,901

4,294
4,281
4.357
4.338
4,337

8*.........

15*.............
22*.............
29*.............

F o r notes see p. A-30.




172
272
228
236

121

APRIL 1972 o WEEKLY REPORTING BANKS

A 27

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)
Loans (cont.)

Investments

O ther (cont.)

U.S. Treasury securities
N otes and bonds
m aturing-

To commercial
banks

Wednesday
estate

D o­
mes*
tic

For­
eign

Con­
sumer
instal­
ment

F o r­
eign
govts.2

All
other

Total

Bills

Certif­
icates
Within
1 yr.

1 to
5 yrs.

After
5 yrs.

Large banks—
Total
1971
34,408
34,489
34,483
34,533
34,560

418
427
470
483
454

1,508
1,510
1,453
1,399
1,342

21,545
21,499
21,511
21,539
21,591

758
760
755
787
781

13,809
13,671
13,775
13,860
13,787

28,222
28,123
27,709
27,046
28,060

5,949
5,862
5,467
4,706
5,676

3,032
3,056
3,045
3,123
3,141

15,207
15,264
15,193
15,164
15,186

4,034
3,941
4,004
4,053
4,057

........................... M ar. 3
...................................... 10
...................................... 17
...................................... 24
...................................... 31

38,887
38,945
39,056
39,135

816
845
837
785

2,611
2,656
2,529
2,598

24,181
24,123
24,084
24,072

910
905
886
910

15,316
15,057
15,175
15,342

27,881
27,497
27,156
27,455

3,909
3,473
3,222
3,597

4,005
4,026
4,547
4,605

16,218
16,218
15,658
15,554

3,749
3,780
3,729
3,699

...........................Feb. 2
...................................... 9
...................................... 16
...................................... 23

39,178
39,300
39,448
39,557
39,709

957
975
1,029
1,068
1,143

2,487
2,497
2,559
2,538
2,672

24,099
24,084
24,098
24,100
24,208

919
889
908
912
943

15,464
15,383
15,582
15,554
15,612

27,927
28,862
28,431
27,989
27,749

4,145
5,173
4,842
4,567
4,468

4,755
4,820
4,832
4,820
4,797

15,486
15,394
15,252
15,228
15,209

3,541
3,475
3,505
3,374
3,275

............................M ar. 1p
...................................... 8p
...................................... 15p
...................................... 22p
...................................... 29*

1972

New York City
1971
3,559
3,591
3,592
3,617
3,607

148
136
172
169
142

870
873
839
783
723

1,845
1,839
1,835
1,841
1,823

480
485
482
501
481

2,605
2,536
2,583
2,590
2,456

5,030
5,238
5,052
4,826
5,384

1,283
1,430
1,223
964
1,459

386
409
401
421
429

2,867
2,860
2,855
2,870
2,875

494
539
573
571
621

............................M ar. 3
...................................... 10
...................................... 17
...................................... 24
...................................... 31

4,126
4,130
4,156
4,167

286
318
330
234

1,085
1,144
1,066
1,125

1,940
1,943
1,926
1,928

542
549
544
579

2,798
2,582
2,681
2,741

5,285
5,097
4,731
5,012

955
711
621
893

855
839
969
990

3,045
3,073
2,683
2,708

430
474
458
421

........................... Feb. 2
...................................... 9
...................................... 16
...................................... 23

4,182
4,195
4,196
4,213
4,229

269
307
299
312
341

1,054
1,101
1,163
1,124
1,201

1,919
1,918
1,916
1,911
1,913

549
548
560
563
571

2,876
2,688
2,815
2,707
2,748

5,333
5,850
5,679
5,521
5,376

1,218
1,806
1,646
1,582
1,543

970
1,039
1,057
1,029
1,031

2,703
2,615
2,545
2,559
2,493

442
390
431
351
309

............................M ar. 1p
...................................... 8p
...................................... 15p
...................................... 22*
...................................... 29p

1972

i
|

Outside
New York City
1971

30,849
30,898
30,891
30,916
30,953

270
291
298
314
312

638
637
614
616
619

19,700
19,660
19,676
19,698
19,768

278
275
273
286
300

11,204
11,135
11,192
11,270
11,331

23,192
22,885
22,657
22,220
22,676

4,666
4,432
4,244
3,742
4,217

2,646
2,647
2,644
2,702
2,712

12,340
12,404
12,338
12,294
12,311

3,540
3,402
3,431
3,482
3,436

............................Mar. 3
...................................... 10
...................................... 17
...................................... 24
...................................... 31

34,761
34,815
34,900
34,968

530
527
507
551

1,526
1,512
1,463
1,473

22,241
22,180
22,158
22,144

368
356
342
331

12,518
12,475
12,494
12,601

22,596
22,400
22,425
22,443

2,954
2,762
2,601
2,704

3,150
3,187
3,578
3,615

13,173
13,145
12,975
12,846

3,319
3,306
3,271
3,278

........................... Feb. 2
...................................... 9
......................................16
......................................23

34,996
35,105
35,252
35,344
35,480

688
668
730
756
802

1,433
1,396
1,396
1,414
1,471

22,180
22,166
22,182
22,189
22,295

370
341
348
349
372

12,588
12,695
12,767
12,847
12,864

22,594
23,012
22,752
22,468
22,373

2,927
3,367
3,196
2,985
2,925

3,785
3,781
3,775
3,791
3,766

12,783
12,779
12,707
12,669
12,716

3,099
3,085
3,074
3,023
2,966

........................... M ar. 1p
...................................... 8p
...................................... 15p
...................................... 22 p
...................................... 29 p

1972

F o r notes see p. A-30.




A 28

WEEKLY REPORTING BANKS a APRIL 1972
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)
Investments (c ont.)
O ther securit ies

Wednesday
Total

Obligations
o f State
and
political
subdivisions
Tax
war­
ra n ts3

All
other

O ther bonds,
corp. stock,
and
securities

Certif.
of
partici­
pation4

Cash
items
in
process
•
of
collec­
tion

Re­
serves
with
F.R.
Banks

C ur­
rency
and
coin

Bal­
ances
with
do­
mestic
banks

Invest­
ments
in sub­
sidiar­
ies not
consol­
idated

Other
assets

Total
assets/
total
liabil­
ities

All
o ther5

Large banks—
Total
1971
46,518
46,931
47,486
47,642
47,449

6,808
7,088
7,203
7,041
6,898

33,347
33,510
33,748
34,036
33,831

1,170
1,149
1,185
1,205
1,184

5,193
5,184
5,350
5,360
5,536

33,232
30,671
33,724
29,639
36,285

18,471
18,625
19,508
18,167
19,482

3,159
3,307
3,373
3,431
3,327

6,662
6,558
6,723
6,368
7,495

738
737
738
738
738

15,018
14,765
14,719
15,314
15,482

336,817
332,679
338,404
331,563
342,856

2 .............................
9
16...............................
2 3

52,667
52,531
52,648
52,632

8,489
8,438
8,408
8,412

36,837
36,703
36,706
36,667

1,533
1,546
1,542
1,516

5,808
5,844
5,992
6,037

32,493
29,959
33,385
32,783

19,477
19,413
21,013
19,509

3,488
3,488
3,519
3,742

7,043
8,862
8,658
9,399

937
933
933
933

16,294
16,021
15,786
15,881

360,769
359,140
364,838
363,497

1*...........................

53,074
53,254
53,833
53,838
53,743

8,523
8,648
9,031
9,251
9,144

36,801
36,927
37,046
36,902
36,946

1,549
1,552
1,549
1,521
1,567

6,201
6,127
6,207
6,164
6,086

35,276
31,469
33,101
28,400
27,114

19,403
19,727
19,781
20,044
21,729

3,429
3.377
3,475
3,612
3,664

10,403
9,351
9,521
8,597
8,790

934
919
920
920
922

16,409
16,225
16,724
16,493
16,632

369,823
364,845
371,704
365,320
367,012

7,940
8,018
7,942
8,043
7,855

1,348
1,518
1,498
1,329
1,326

5,348
5,292
5,225
5,444
5,181

94
94
100
91
93

1,150
1,114
1,119
1,179
1,255

15,357
15,075
16,261
14,463
18,904

3,786
5,131
4,531
5,081
5,153

408
428
436
423
412

1,206
1,211
1,293
1,110
1,904

346
346
346
346
346

5,423
5,271
5,230
5,734
5,767

83,938
83,659
85,071
83,006
88,534

M ar.

3 .............................
10.............................
17...............................
2 4 .............................
31...............................

Feb.

1972

M ar.

8*.....................
15*.............................
22*.............................
29 *...........................
New York City
1971

M ar.

3.............................
1 0
17.............................
2 4
31.............................

Feb.

2 .............................
9 .............................
16.............................
23.............................

8,293
8,208
7,959
7,911

1,659
1,602
1,572
1,619

5,412
5,407
5,248
5,164

285
296
278
262

937
903
861
866

14,133
13,812
14,426
14,008

4,926
4,969
5,534
4,867

433
428
426
435

1,384
3,543
3,193
3,652

425
425
424
424

5,114
5,077
4,972
5,092

85,642
86,694
87,468
86,680

\ p ...........................

8,114
8,085
8,070
8,404
8,316

1,726
1,739
1,744
2,047
1,985

5,207
5,175
5,167
5,231
5,230

266
272
265
250
261

915
899
894
876
840

15,999
14,361
13,295
10,949
10,527

4,896
5,259
4,779
4,550
6,111

412
415
429
426
435

4,274
4,101
3,642
3,475
3,662

426
426
426
425
426

5,085
5,059
5,332
5,217
5,289

90,970
89,027
89,368
86,001
87,317

38,578
38,913
39,544
39,599
39,594

5,460
5,570
5,705
5,712
5,572

27,999
28,218
28,523
28,592
28,650

1,076
1,055
1,085
1,114
1,091

4.043
4,070
4,231
4,181
4,281

17,875
15,596
17,463
15,176
17,381

14,685
13,494
14,977
13,086
14,329

2,751
2,879
2,937
3,008
2,915

5,456
5,347
5,430
5,258
5,591

392
391
392
392
392

9,595
9,494
9,489
9,580
9,715

252,879
249,020
253,333
248,557
254,322

1972

M ar.

8*.....................

15*.....................
22*...........................
29*...........................
Outside
New York City
1971
M ar.

3.
10.
17.
24.
31.

Feb.

2.
9.
16.
23.

44,374
44,323
44,689
44,721

6,830
6,836
6,836
6,793

31,425
31,296
31,458
31,503

1,248
1,250
1,264
1,254

4,871
4,941
5,131
5,171

18,360
16,147
18,959
18,775

14,551
14,444
15,479
14,642

3,055
3,060
3,093
3,307

5,659
5,319
5,465
5,747

512
508
509
509

11,180
10,944
10,814
10,789

275,127
272,446
277,370
276,817

M ar.

1*.
8 *.
15*.
22*.
29*.

44,960
45,169
45,763
45,434
45,427

6,797
6,909
7,287
7,204
7,159

31,594
31,752
31,879
31,671
31,716

1,283
1,280
1,284
1,271
1,306

5,286
5,228
5,313
5,288
5,246

19,277
17,108
19,806
17,451
16,587

14,507
14,468
15,002
15,494
15,618

3,017
2,962
3,046
3,186
3,229

6,129
5,250
5,879
5,122
5,128

508
493
494
495
496

11,324
11,166
11,392
11,276
11,343

278,853
275,818
282,336
279,319
279,695

1972

For notes see p. A-30.




APRIL 1972 □ WEEKLY REPORTING BANKS

A 29

ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Deposits
Time and savings

Demand
Domestic
interbank

Total

IPC

States
and
polit­
ical
sub­
divi­
sions

U.S.
Govt.

mer­
cial

IPC

Foreign

M utual
C omC­ om ­
sav­
Govts., mer­
cial
ings
etc.2
banks

Certi­
fied
and
offi­
cers’
checks

T otal6
Sav­
ings

Other

States
and
polit­
ical
sub­
divi­
sions

Wednesday
D o­
mes­
tic
inter­
bank

F or­
eign
govts.2

Large banks—
Total
1971
141,127
136,350
140,449
134,078
146,456

96,043
95,173
97,508
95,117
99,253

6,693
6,264
6,181
6,469
6,957

4,944
3,080
3,950
2,144
2,889

22,253
20,814
21,309
19,647
24,703

639
616
644
594
785

770
742
734
740
805

2,229
2,36C
2,38C
2,243
2,271

7,556
7,301
7,743
7,124
8,793

127,043
128,105
128,975
129,029
129,128

51,023
51,544
52,025
52,379
52,973

14,685
14,666
14,659
14,608
14,498

1,581
1,586
1,569
1,579
1,545

3,859
3,823
4,166
4,110
4,079

...............Mar. 3
..........................10
..........................17
..........................24
..........................31

146,564
143,520
145,910
146,174

99,963
97,979
101,714
100,311

7,714
6,436
6,403
6,323

4,531
4,765
3,193
4,471

22,211
23,783
23,677
24,809

739
687
686
643

716
666
690
753

2,488
2,414
2,325
2,527

8,202 142,532 55,869 61,371 17,528
6,790 142,934 56,032 61,450 17,60C
7,222 143,205 56,218 61,578 17,536
6,337 144,122 56,422 62,052 17,709

2,262
2,328
2,318
2,313

4,993
5,038
5,060
5,131

...............Feb. 2
.......................... 9
..........................16
..........................23

151,788
144,988
152,257
144,487
143,920

102,735
99,467
105,657
100,854
100,628

7,311
6,209
6,205
6,593
6,575

3,518
3,895
6,122
6,291
5,579

26,500
24,357
22,597
20,953
20,190

683
665
669
625
653

687
654
778
667
822

2,586
2,504
2,618
2,555
2,627

7,768
7,237
7,611
5,949
6,846

2,310
2,291
2,253
2,251
2,270

5,151
5,194
5,151
5,151
5,133

...............M ar. 1p
.......................... 8 p
.................... 15*
.......................... 22 p
..........................29*

55,385
55,947
56,008
55,842
55,514

1972

144,286
144,740
143,659
144,026
144,863

56,578
56,879
57,103
57,382
57,616

62,085
62,269
61,217
61,535
61,931

17,679
17,636
17,475
17,283
17,473

New York City
1971
42,397
40,916
42,567
39,994
46,755

22,716
22,632
23,383
22,610
24,452

508
483
549
653
664

1,392 10,282
707 9,621
857 9,883
307 9,138
551 12,543

328
309
342
309
424

620
595
573
582
650

1,590
1,741
1,69?
1,609
1,605

4,961
4,828
5,282
4,786
5,866

20,697
20,988
21,125
21,092
21,074

4,886
4,962
5,032
5,088
5,182

11,620
11,885
11,855
11,775
11,633

1,142
1,131
1,090
1,117
1,170

836
821
784
803
786

2,086
2,060
2,235
2,176
2,170

41,383
42,170
42,512
42,538

21,811
21,995
23,153
22,237

1,173
386
405
388

823 9,880
1,007 12,236
548 11,723
843 12,957

399
370
358
332

567
526
538
605

1,764
1,695
1,625
1,736

4,966
3,955
4,162
3,440

23,499
23,528
23,524
23,780

5,502 12,333
5,532 12,273
5,562 12,283
5,600 12,443

1,679
1,709
1,650
1,674

1,178
1,209
1,196
1,194

2,695
2,713
2,736
2,772

45,780
42,637
44,041
40,232
40,212

23,405
21,969
23,890
22,416
22,302

470
398
347
511
478

661 14,157
925 12,676
1,815 10,786
1,780 9,831
1,326 9,354

353
329
346
313
347

512
491
628
515
659

1,810
1,722
1,844
1 ,795
1,851

4,412
4,127
4,385
3,071
3,895

23,928
24,219
23,559
23,892
24,537

5,615
5,649
5,685
5,723
5,753

1,675
1,713
1,696
1,717
1,936

1 ,189
1,191
1 ,168
1,162
1 ,163

2,795
2,851
2,830
2,846
2,827

. M ar. 3
...........10
...........17
...........24
...........31
1972

12,555
12,714
12,079
12,344
12,756

.16
.23
. Mar.

1p
8p
15 p
22 p
29 p

Outside
New York City
1971
98,730
95,434
97,882
94,084
99,701

73,327
72,541
74,125
72,507
74,801

6,185
5,781
5,632
5,816
6,293

3,552 11,971
2,373 11,193
3,093 11,426
1,837 10,509
2,338 12,160

311
307
302
285
361

150
147
161
158
155

639
619
682
634
666

2,595
2,473
2,461
2,338
2,927

43,765
44,062
44,153
44,067
43,881

13,543
13,535
13,569
13,491
13,328

745
765
785
776
759

1,773
1,763
1,931
1,934
1,909

. Mar.

105,181
101,350
103,398
103,636

78,152
75,984
78,561
78,074

6,541
6,050
5,998
5,935

3,708
3,758
2,645
3,628

12,331
11,547
11,954
11,852

340
317
328
311

149
140
152
148

724
719
700
791

3,236 119,033 50,367 49,038
2,835 119,406 50,500 49,177
3,060 119,681 50,656 49,295
2,897 120,342 50,822 49,609

15,849
15,891
15,886
16,035

1,084
1,119
1,122
1,119

2,298
2,325
2,324
2,359

. . . Feb. 2
.................9
................ 16
.................23

106,008
102,351
108,216
104,255
103,708

79,330
77,498
81,767
78,438
78,326

6,841
5,811
5,858
6,082
6,097

2,857
2,970
4,307
4,511
4,253

12,343
11,681
11,811
11,122
10,836

330
336
323
312
306

175
163
150
152
163

776
782
774
760
776

3,356 120,358 50,963 49,530
3,110 120,521 51,230 49,555
3,226 120,100 51,418 49,138
2,878 120,134 51,659 49,191
2,951 120,326 51,863 49,175

16,004
15,923
15,779
15,566
15,537

1,121
1,100
1,085
1,089
1,107

2,356
2,343
2,321
2,305
2,306

. . . M ar.

106,346
107,117
107,850
107,937
108,054

46,137
46,582
46,993
47,291
47,791

1972

F or notes see p. A-30.




1p
........... 8p
...............15p
...............22 p

........... 29*

A 30

WEEKLY REPORTING BANKS □ APRIL 1972
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions o f dollars)

Borrowings
from —

Wednesday

Fed­
eral
funds
p u r­
F.R.
chased, Banks
etc. 7

Others

Reserves
for—

Other
liabili­
ties
etc. 8

M em oranda

Secur­
ities

Total
capital

Total
loans
(gross)
ad­
justed 9

Large negotiable
Total
time C D ’s
loans
included in time
and
D e­
and savings deposits11
invest­
mand
ments deposits
(gross)
ad­
Issued Issued
ad­
justed i o Total
to
to
justed9
IP C ’s others

G ross
liaoilities o f
banks
to
their
foreign
bran­
ches

Large banks—
Total
1971
M ar.

3 ........................
10........................
17........................
2 4 ........................
31........................

Feb.

19,176
17,882
19,692
18,482
18,854

245
1,503
551
795
377

887
829
828
865
828

19,158
18,740
18,676
19,074
17,772

4.077
4.078
4,076
4.078
4,059

25,023
25,112
25,077
25,082
25,303

176,554
176,076
176,631
176,196
177,200

251,294
251,130
251,826
250,884
252,709

80,698
81,785
81,466
82,648
82,579

27,748
28,100
28,315
28,058
27,458

18,108
18,487
18,400
18,173
17,623

9,640
9,613
9,915
9,885
9,835

5,018
4,807
4,177
4,329
2,858

2 ........................
9 ........................
16........................
2 3

23,653
24,856
27,302
25,483

155

2

1,062
1.087
1.088
1,095

15,399
15,008
15,781
15,061

4,106
4.119
4.120
4,122

27,366
27,385
27,348
27,364

190,040
189,463
189,908
190,810

270,588
269,491
269,712
270,897

87,329
85,013
85,655
84,111

33,356
33,465
33,436
34,012

20,576
20,505
20,524
20,859

12,780
12,595
12,912
13,152

1,301
1,062
1,006
1,068

I p ......................
8p ......................
15p ......................
22p ......................
29 p ......................

25,358
25.710
26,609
26,699
28,237

52
695
15
721
991

1,214
1,321
1,367
1,417
1,116

15,323
15,555
16,039
16,197
16,010

4.138
4.139
4,135
4,134
4,148

27,587
27,620
27,546
27,562
27,656

192,317
191,754
194,444
194,009
194,538

273,318
273,870
276,708
275,836
276,030

86,494
85,267
90,437
88,843
91,037

33,765 20,556
33,989 20,684
32,815 19,657
33,015 19,910
33,480 20,155

13,208
13,305
13,158
13,105
13,325

951
1,164
1,263
1,339
1,525

4,681
4,783
5,171
5,233
5,337

800
320
393

8,606
8,539
8,254
8,676
7,686

1,216
1,216
1.219
1.219
1,200

6,259
6,335
6,343
6,327
6,411

42,899
42,349
42,517
42,201
42,304

55,869
55,605
55,511
55,070
55,543

15,366
15,513
15,566
16,086
14,757

8,731
8,954
9,018
8,995
8,820

6,472
6,741
6,663
6.615
6,381

2,259
2,213
2,355
2,380
2,439

3,059
3,096
2,550
2,712
1,646

1972

M ar.

New York City
1971
Mar.

3 ........................
10........................
17........................
2 4
3 1 ........................
1972

Feb.

2 ........................
9
16........................
2 3

6,283
6,564
7,161
6,197

169
220
245
280

6,130
5,881
5,857
5,722

1,199
1,202
1,201
1,204

6,979
6,974
6,968
6,959

44,044
43,881
44,036
44,407

57,622
57,186
56,726
57,330

16,547 11,066
15,115 11,100
15,815 11,178
14,730 11,374

7,164
7,098
7,186
7,337

3,902
4,002
3,992
4,037

947
739
616
702

Mar.

I p ......................
8p .................
15p ................
22? ................
29 p ......................

6,984
6,811
6,929
6,364
7,103

640
655

305
382
463
474
184

5,726
6,071
6,137
6,185
6,414

1,210
1,210
1.209
1.210
1,218

7,037
7,035
7,030
7,004
6.994

45,271
44,597
46,078
45,396
45,839

58,718
58,532
59,827
59,321
59,531

14,963
14,675
18,145
17,672
19,005

11,323
11,575
10,965
11,252
11,812

7,287
7,460
6,901
7,161
7,506

4,036
4,115
4,064
4,091
4,306

686
884
946
968
1,191

14,495
13,099
14,521
13,249
13,517

245
703
231
402
377

805
747
756
793
757

10,552
10,201
10,422
10,398
10,086

2,861
2,862
2,857
2.859
2.859

18,764
18,777
18,734
18,755
18,892

133,655
133,727
134,114
133,995
134,896

195,425
195,525
196,315
195,814
197,166

65,332
66,272
65,900
66,562
67,822

19,017
19,146
19,297
19,063
18,638

11,636
11,746
11,737
11,558
11,242

,381
,400
,560
,505
,396

1,959
1,711
1,627
1,617
1,212

893
867
843
815

9,269
9,127
9,924
9,339

2,907
2.917
2,919
2.918

20,387
20,411
20,380
20,405

145,996
145,582
145,872
146,403

212,966
212,305
212,986
213,567

70,782
69,898
69,840
69,381

22,290
22,365
22,258
22,638

13,412
13,407
13,338
13,522

8,878
8,957
8,920
9,115

354
323
390
366

909
939
904
943
932

9,597
9,484
9,902
10,012
9,596

2.928
2.929
2,926
2,924
2.930

20,550
20,585
20,516
20,558
20,662

147,046
147,157
148,366
148,613
148,699

214,600
215,338
216,881
216,515
216,499

71,531
70,592
72,292
71,171
72,032

22,442
22,414
21,850
21,763
21,668

13,269
13,224
12,756
12,749
12,649

9,172
9,190
9,094
9,014
9,019

265
280
317
371
334

Outside
New York City
1971
M ar.

3 ........................
1 0
17........................
2 4
31 ........................
1972

Feb.

2 ........................
9 ........................
16........................
2 3 ........................

17,370
18,292
20,141
19,286

M ar.

\ v ......................
8? .................
15p .................
22? ................
29 p ......................

18,374
18,899
19,680
20,335
21,134

52
33
15
81
336

1 Includes securities purchased under agreements to resell.
2 Includes official institutions and so forth.
3 Includes short-term notes and bills.
4 Federal agencies only.
5 Includes corporate stock.
6 Includes U.S. Govt, and foreign bank deposits, not shown separately.
7 Includes securities sold under agreements to repurchase.




8 Includes minority interest in consolidated subsidiaries.
9 Exclusive o f loans and Federal funds transactions with domestic com ­
mercial banks.
10 All demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process o f collection.
11 Certificates o f deposit issued in denominations o f $100,000 o r more.

APRIL 1972 □ BUSINESS LOANS OF BANKS

A 31

COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
N et change during

O utstanding
1972

1972

Industry

I

IV

III

2nd
half

1st
half

32
-7 8
129
25
77

-1 4
-1 9 8
-9 6
-1 0 1
-5 2

54
-9 1
14
17
146

-1 6 2
-6 0 0
-1 0 1
-2 5 9
-3 2 8

-1 2 0
-2 3 1
24
-1 3 0
11

-2 8 2
-8 3 1
-7 7
-3 8 9
-3 1 7

145
-2 1 8
-1 9 0
197
258

-1 3 9
253
-5 8
5
53

12
140
6
55
-4

-1 0 0
-1 1 2
-4 5
-1 6 3
-1 2 4

-2 2 7
281
-9 7
-1 0 3
-7 5

205
-2 7 3
56
-4 3 7
-9 6

293
-3 1
-4
-1 5 5
60

498
-3 0 4
52
-5 9 2
-3 6

-7 0 9
279
-4 0 4
66
-1 4 0

3,642
1,468
4,313
4,187
5,579
1,251
2,630
3,905
8,041
5,844
1,908

66
6
66
219
40
-1 0 1
-1 8 4
38
218
186
-1 4 6

-6 6
-1 5 4
-5 7
85
15
15
7
194
111
118
-4 1

-1 3 7
-4 6
-6 1
-4 5
-8 8
12
-9 7
-7 6
37
-4 0
-3 6 6

-1 3 7
-1 9 4
-5 2
259
-3 3
-7 4
-2 7 4
156
366
264
-5 5 3

-1 7
460
132
-3 4 0
-7 8
-2 4 9
176
77
276
305
696

204
72
392
81
-2 4 6
24
349
106
13
305
462

187
532
524
-2 5 9
-3 2 4
-2 2 5
525
183
289
610
1,158

-3 8 3
-2 3 5
208
336
-3 0
231
-1 4 7
182
187
118
-5 5 5

Total classified lo a n s..............................

3,314 3,254 3,285
3,234
3,241
70,022 69,736 69,883 69,149 69,054

127
1,065

-2 8
-1 0
593 - 1 ,9 2 2

89
-2 6 4

254
-3 0 3

324
1,803

578
1,500

238
-5 6 6

Total commercial and industrial loans.

83,795

1,305

730 - 2,010

25

335

1,279

1,614

463

M ar.
29

Mar.
22

Mar.
15

Mar.
8

2,063
4,289
2,676
1,733
2,641

2,076
4,253
2,651
1,709
2,630

2,077
4,239
2,654
1,723
2,603

2,043
4,101
2,608
1,672
2,562

2,046
4,075
2,632
1,676
2,517

36
185
-1 9
93
121

2,666
2,574
1,077
2,151
1,747

2,691
2,537
1,047
2,156
1,750

2,733
2,527
1,070
2,146
1,754

2,772
2,382
1,107
2,130
1,748

2,774
2,320
1,127
2,157
1,728

3,670
1,482
4,381
4,381
5,613
1,240
2,452
3,973
8,240
5,918
1,741

3,675
1,507
4,381
4,204
5,619
1,257
2,500
3,982
8,205
5,952
1,700

3,657
1,508
4,326
4,265
5,578
1,222
2,538
4,029
8,153
5,915
1,881

3,642
1,484
4,295
4,199
5,592
1,245
2,593
3,943
8,076
5,824
1,890

83,462 83,517 82,702 82,597

M ar.

Feb.

1971

1971

Jan.

D urable goods manufacturing:
Prim ary m etals....................................
M achinery.............................................
T ransportation equipm ent................
O ther fabricated metal pro d u cts. . .
O ther durable g o o d s..........................
N ondurable goods manufacturing:
Food, liquor, and to b acco ...............
Textiles, apparel, and leath er...........
Petroleum refining..............................
Chemicals and ru b b e r.......................
O ther nondurable g o o d s...................
Mining, including crude petroleum
and natural gas..............................
T rade: Com m odity dealers...................
O ther w holesale.........................
R etail............................................
T ran sp o rtatio n ........................................
C om m unication.......................................
O ther public utilities..............................
C onstruction.............................................
Services......................................................
All other domestic loans.......................
Bankers’ acceptances..............................
Foreign commercial and industrial

Mar.

1972

S ee N o t e t o ta b le b e lo w .

“TERM " COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding
1972

Industry

D urable goods manufactur­
ing:
Primary m etals.....................
M achinery............................
Transportation equipm ent.
O ther fabricated metal
pro d u cts............................
O ther durable goods...........
N ondurable goods manufac­
turing :
Food, liquor, and tobacco.
Textiles, apparel, and
leather................................
Petroleum refining...............
Chemicals and rubber........
O ther nondurable g o o d s ..
Mining, including crude pe­
troleum and natural gas.
Trade: Commodity d e a le rs..
O ther w holesale.........
R etail............................
T ransportation.........................
C om m unication.......................
O ther public utilities...............
C onstruction............................
Services......................................
All other domestic loans . . . .
Foreign commercial and in­
dustrial lo an s...................
Total loans................................

1971

1971

1971

1972

M ar.
29

Feb.
23

Jan.
26

Dec.
29

1,342
2,072
1,493

1,330
2,001
1,553

1,315
2,179
1,605

1,362
2,285
1,620

1,406
2,396
1,592

1,495
2,476
1,626

1,524
2,479
1,689

1,481
2,505
1,582

1,534
2,511
1,552

-2 0
-2 1 3
-1 2 7

-1 6 2
-1 9 4
-6 9

-6 2
-5 7
130

-4 3
-5 2
-5 4

-2 2 4
-2 5 1
61

688
1,145

683
1,118

699
1,117

713
1,135

707
1,162

743
1,204

775
1,214

804
1,269

802
1,239

-2 5
10

-6 2
-7 9

-3 9
-1 9

82
16

-1 0 1
-9 8

912

937

987

1,021

1,010

971

985

938

946

—109

36

17

-2

53

653
757
1,226
977

580
818
1,315
973

567
848
1,330
1,010

576
892
1,441
1,024

577
867
1,528
1,018

585
900
1,654
1,047

607
857
1,785
1,018

609
841
1,809
1,006

597
901
1,821
1,008

77
-1 3 5
-2 1 5
-4 7

-3 1
35
-3 4 4
6

10
-3 4
-3 2
-2

-2 0
-2 3
-2 6
-7 9

-2 1
1
-3 7 6
4

2,872
125
927
1,340
4,383
440
1,160
1,417
3,653
1,728

2,891
132
883
1,352
4,314
417
1,191
1,327
3,542
1,627

2,927
119
915
1,349
4,397
432
1,305
1,257
3,539
1,570

3,039
115
893
1,383
4,440
427
1,316
1,244
3,488
1,431

2,998
104
860
1,429
4,448
427
1,292
1,255
3,438
1,413

3,021
116
862
1,475
4,444
418
1,304
1,240
3,397
1,390

2,934
109
847
1,471
4,571
420
1,272
1,192
3,347
1,390

3,000
117
834
1,450
4,471
422
1,180
1,202
3,311
1,362

3,017
101
845
1,416
4,596
471
1,141
1,225
3,237
1,311

-1 6 7
10
34
-4 3
-5 7
13
-1 5 6
173
165
297

105
6
46
-8 8
-1 3 1
7
44
52
141
41

-5 6
12
11
57
-2 6
-4 8
178
5
89
141

-1 3 0
17
60
3
-2 5 3
66
122
107
124
-2 1

49
18
57
-3 1
-1 5 7
-4 1
222
57
230
182

1,898

1,995

2,076

1,956

1,940

1,892

1,950

1,908

-1 3 7

184

31,883 32,308 32,378 32,143 32,179

-6 7 2

-4 5 7

1,939
31,249

30,882 31 462 31,921

Nov.
24

N o t e . — About 160 weekly reporting banks are included in this series;
these banks classify, by industry, commercial and industrial loans am ount­
ing to about 90 per cent o f such loans held by all weekly reporting banks
and about 70 per cent of those held by all commercial banks.
For description o f series see article “ Revised Series on Commercial and
Industrial Loans by Industry,” Feb. 1967 B u l l e t i n , p. 209.




N et change during-

Oct.
27

Sept.
29

Aug.
25

July
28

I

IV

III

2nd
half

II

100
275

-6

184
-1 8 2

Commercial and industrial “ term” loans are all outstanding loans with
an original m aturity o f 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 32

DEMAND DEPOSIT OWNERSHIP □ APRIL 1972
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions o f dollars)
Type o f holder
Class o f bank, and quarter o r m onth

deposits,
IPC

Financial
business

Nonfinancial
business

C onsumer

1970—Ju n e........................................................................................
Sept.........................................................................................
Dec..........................................................................................

17.1
17.0
17.3

85.3
88.0
92.7

49.0
51.4
53.6

1.6
1.4
1.3

9 .6
10.0
10.3

162.5
167.9
175.1

1971—M ar........................................................................................
June........................................................................................
Sept.........................................................................................
D ec.........................................................................................

18.3
17.9
17.9
18.5

86.1
89.9
91.5
98.0

54.1
56.0
57.5
58.6

1.4
1.3
1.2
1.3

10.4
10.7
9 .7
10.7

170.3
175.8
177.9
187.0

Foreign

All
other

All commercial banks:

Weekly reporting banks:
1970—D ec.........................................................................................

13.5

56.1

23.3

1.2

5.6

99.7

1971—Feb..........................................................................................
M ar........................................................................................
A pr.........................................................................................
M ay........................................................................................
June........................................................................................
July.........................................................................................
Aug.........................................................................................
Sept.........................................................................................
Oct..........................................................................................
N ov.........................................................................................
Dec..........................................................................................

13.9
14.1
14.1
13.7
14.0
14.1
13.5
13.8
13.9
13.7
14.3

52.2
52.4
53.4
52.9
54.2
54.7
53.4
54.6
55.5
55.8
58.6

23.1
23.9
25.3
24.1
24.4
24.8
24.1
24.5
24.5
24.6
24.9

1.2
1.3
1.3
1.2
1.2
1.2
1.2
1.2
1.1
1.1
1.2

5.5
5.7
5.7
5.5
6 .0
5.4
5.1
5.5
5.4
5.4
5.9

95.8
97.3
99.8
97.4
99.8
100.3
97.2
99.6
100.4
100.7
104.9

1972

14.4
13.7

56.8
55.4

25.4
24.5

1.1
1.1

6.0
5.9

103.7
100.5

Jan ..........................................................................................
Feb..........................................................................................

1 Including cash items in process o f collection.
N o t e . —Daily-average

balances maintained during m onth as estimated

from reports supplied by a sample o f commercial banks. For a detailed
description o f the type o f depositor in each category, see June 1971
B u l l e t i n , p. 466.

DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS
(In millions o f dollars)
Class of
bank
All com m ercial. . . .
Insured.................
N ational member
State m em ber.. . .
All m em ber.............

Dec. 31,
1968

Dec. 31,
1969

1,216
1,216
730
207
937

1,131
1,129
688
188
876

Dec. 31,
1970
804
803
433
147
580

June 30,
1971
746
745
407
129
536

N o t e . —These hypothecated deposits are excluded from Time deposits
and Loans at all commercial banks beginning with June 30, 1966, as
shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal­
m ent loans), and in the table at the bottom o f p. A-18. These changes




Class of
bank
All member—Cont.
O ther reserve city................
All nonm em ber........................
N oninsured............................

Dec. 31,
1968

332
605
278
278

Dec. 31,
1969

304
571
255
253
2

Dec. 31,
1970

143
437
224
223
1

June 30,
1971

125
411
210
209
1

resulted from a change in Federal Reserve regulations. See June 1966
B u l l e t i n , p. 808.
These deposits have not been deducted from Time deposits and Loans
for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24
and A-25 (IPC only for time deposits).

APRIL 1972 o LOAN SALES BY BANKS; OPEN MARKET PAPER

A 33

LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To own subsidiaries, foreign branches,
holding companies, and other affiliates
Date

To all others except banks
By type o f loan

By type o f loan
Total

Total
Commercial
and
industrial

All other

Commercial
and
industrial

All other

1971—Dec.

1 ...........
8 ...........
15...........
2 2 ...........
2 9 ...........

2,934
2,852
2,744
2,841
2,840

1,723
1,675
1,619
1,655
1,632

1,211
1,177
1,125
1,186
1,208

1,592
1,634
1,635
1,620
1,661

400
398
395
387
378

1,192
1,236
1,240
1,233
1,283

1972—Jan.

5 ...........
12...........
19...........
2 6 ...........

2,827
2,795
2,741
2,965

1,596
1,603
1,583
1,729

1,231
1,192
1,158
1,236

1,654
1,629
1,622
1,602

371
362
362
351

1,283
1,267
1,260
1,251

Feb.

2 ...........
9 ...........
16...........
2 3 ...........

2,969
2,911
2,837
2,873

1,731
1,749
1,735
1,718

1,238
1,162
1,102
1,155

1,615
1,604
1,624
1,640

345
345
347
340

1,270
1,259
1,277
1,300

M ar.

1..........
8 ...........
15..........
2 2 ...........
2 9 ...........

2,936
2,890
2,801
2,795
2,772

1,711
1,735
1,703
1,711
1,785

1,225
1,155
1,098
1,084
987

1,647
1,665
1,664
1,629
1,622

353
369
366
364
367

1,294
1,296
1,298
1,265
1,255

N o t e . — Amounts sold under repurchase agreement are excluded. Figures include small am ounts sold
by banks other than large weekly reporting banks.

COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING
(In millions o f dollars)
Commercial and finance

dealers

End o f period

D ollar acceptances
Held by—

Placed
directly

Based on-

ports
into
U nited
States

Ex­
ports
from
United
States

1,837
2,022
2,090
2,717
3,674
4,057

792
997
1,086
1,423
1,889
2,601

974
829
989
952
1,153
1,561

1.626
1,778
2,241
2,053
2,408
2,895

O thers
Bank
Bank
related Other i related O ther 2

1965............................
1966............................
1967............................
1968............................
1969............................
1970............................

9,058
13,279
16,535
20,497
31,709
31,765

1,903
3,089
4,901
7,201
1,216 10,601
409 12,262

1971

32,506
31,223
31,367
31,115

1,518
1,337
1,363
1,356
1,285
1,339
1,338
1,505
1,527
1.624
1.478
1.478

1972

July.................

29,746
30,057
29,946
31,205
31,164
29,934
30,824

383 13,538
13,215
13,058
12,608
11,288
11,001
11,494
395 11,909
454 11,897
406 11,825
495 10.923
495 10.923

Jan..................
Feb.................

31,857
32,247

505 11,922
525 12,262

Feb.................

431
392
448
469

Total

Bills
bought

Own
acct.
187
193
164
58
64
57

144
191
156
109
146
250

All
other

7,155
10,190
11,634
13,296
3,078 16,814
1,940 17,154

3,392
3,603
4,317
4,428
5,451
7,058

1,223
1,198
1,906
1,544
1,567
2,694

1,094
983
1,447
1,344
1,318
1,960

129
215
459
200
249
735

17,067
16,316
16,515
16,759
16,451
16,937
16,771
16,137
17,327
17,309
17,038
17,928

6,984
7,174
7,301
7,494
7,645
7,454
8,377
8,148
7,811
7,479
7,889

3,089 2,306
2,953
355 2,276
2,893 2,320
2,927 2,382
2,807
29,472
2,355
2,594 2,168
2,612
454 2,131
2,803 2,227
3,000 2,350
2,852 2,204
3,480 2,689

784

54

266

3,575

573
545
451
426
481
575
650
648
791

56
112
62
55
107
51
52
58
261

236
253
230
228
245
259
261
258
254

4,115
4,203
4,546
4,577
5,413
5,036
4,499
4,312
3,894

2,618
2,681
2,748
2,889
3,028
3,118
3,405
3,286
3,148
2,848
2,834

1,520
678
1,519
1,510
1,479
1,467
1,388
1,505
1,470
1,366
1,392
1,546

2,847
2,974
138
3,043
3,126
3,150
2,948
3,467
3,391
3,296
3,239
3,509

1,582 17,848
1.624 17,836

7,601
7,935

2,917
3,123

761
715

75
63

253
267

4,356
4,482

2,558
2,589

1,584
1,717

3,458
3,629

^ D ata for commercial and finance company paper on new basis
beginning December 1971. The new series reflects inclusion o f paper
issued directly by real estate investment trusts and several additional
finance companies.




Own
bills

F or­
eign
corr.

2,157
2,408

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.

255

3,82

A 34

INTEREST RATES □ APRIL 1972
PRIME RATE CHARGED BY BANKS
(Per cent per annum)

In effect during—

Effective date

R ate

Rate

192 9

5J4-6

1954— M ar.

17..........

3

193
193
193
193

3*4-6
2% -5
314-4
1S4-4

1955—Aug.
Oct.

4 ...........
14..........

314
W

1956—Apr. 13...........
,
Aug. 21

33/4
4

m

1957— Aug.

0
1
2
3

1934—
1947 (Nov.)

6

1958—Jan. 2 2 ...........
Apr. 2 1 ...........
Sept. 11...........

Effective date
1947—D ec. 1

134

1948—A ug.1. . . .

2

1950—Sept. 22.

21/4

1951—Jan.
Oct.
Dec.

8.
17.
19.

2%
234
3

1953—Apr.

27.

31/4

1959— May
Sept.

18...........
1...........

1960— Aug.

2 3 ...........

1965—Dec.

6 ...........

1966—Mar. 10...........
June 29...........
Aug. 16..........

Effective date

Rate

Effective date

1967—Jan. 2 6 -2 7 ...
M ar. 27 ...........
Nov. 2 0 ...........

5V4-534
5*4
6

1971—Apr.
May
July

6*4
6 -614
6*4
6*4
634

Oct.
Nov.

4*4

1968—Apr. 19...........
Sept. 2 5 ...........
Nov. 13...........
Dec.
2 ...........
18...........

4
3*4
4

1969—Jan.
Mar.
June

7
7*4
8*4
8
7H
7X
7
6*4

Dec.

7 ...........
17...........
9 ...........

4%

1970—Mar. 2 5 ...........
Sept. 2 1 ...........
Nov. 12...........
23...........
Dec. 22 ...........

5

1971—Jan.

4*4
5

5*4
534
6

Feb.
M ar.

6 ...........
15..........
18...........
16..........
11...........
19...........

5%-5*4
5*4-6
6

2 3 .,
11..
6 ..
7 ..

5%

20.
1.

5V4
5V4-5%
5*4-5%

4.
8.

5*4
5H-5V4
5M-5%
5V4-53/85*4
5*4-5*4

22.
29.
6.
27.
31.

1972—Jan.

6*4
614
6
534
5 1 4 -5 ^
514

Feb.
M ar.

51/4

5-51/85!4
4%-5i4
45/8-5

3
17.
24.
31.
28.

4

4H-4V44%
4*4-4%
4%
454-4%-

13.
23.
27.

5

1 D ate o f change not available.

RATES ON BUSINESS LOANS OF BANKS
Size o f loan (in thousands o f dollars)
All sizes

10-99

1-9

100-499

500-999

1,000 and over

Center
Feb.
1972

Nov.
1971

Feb.
1972

Nov.
1971

Feb.
1972

Nov.
1971

Feb.
1972

Nov.
1971

Feb.
1972

Nov.
1971

Feb.
1972

Nov.
1971

6.51
6.17
6.73
6.45
6.65
6.44
6.64

5.44
4.97
5.54
5.46
5.76
5.60
5.46

6.26
5.99
6.46
6.13
6.39
6.27
6.65

5.31
5.38
5.45
5.17
5.29
5.58
5.07

5.93
5.78
6.00
5.95
6.01
6.31
5.92

6.16
6.02
6.15
6.22
6.30
6.57
6.10

5.31
5.22
5.28
5.32
5.86
6.44
5.10

6.01
5.85
6.30
5.93
6.25
6.63
5.94

5.18
5.05
5.38
5.73
5.74
5.73
5.04

5.94
5.94
6.11
6.09
5.81
6.77
5.84

6.79
6.40
7.08
6.79
7.78
6.63
6.64

6.13
5.62
6.88
6.04
9.53
6.68
5.04

6.57
6.50
7.50
6.32
7.78
6.11
6.16

5.44
5.29
5.52
5.17
5.50
5.87
5.87

6.35
6.35
6.27
6.53
7.05
6.46
6.12

Short-term
35 centers.........................................
New Y ork C ity ..........................
7 other N o rth east......................
8 N orth C entral.........................
7 Southeast..................................
8 Southwest.................................
4 W est C o ast..............................

5.52
5.35
5.72
5.37
5.87
5.79
5.39

6.18
5.86
6.40
6.13
6.47
6.43
6.21

7.08
6.47
7.20
6.72
7.39
7.05
7.41

7.51
7.33
7.75
7.13
7.72
7.38
7.93

6.44
5.92
6.58
6.21
6.73
6.43
6.69

7.05
6.79
7.31
6.89
7.16
6.83
7.29

5.76
5.27
5.91
5.60
6.11
5.81
6.08

Revolving credit
35 centers.........................................
New Y ork C ity ..........................
7 other N o rth east......................
8 N orth C entral.........................
7 Southeast..................................
8 Southw est.................................
4 West C o ast..............................

5.24
5.07
5.41
5.67
5.76
5.91
5.13

5.98
5.94
6.16
6.10
6.04
6.70
5.88

6.60
6.06
7.37
7.14
6.03
6.65
6.67

7.24
6.78
8.17
7.21
6.52
7.54
7.65

6.16
5.51
6.56
5.95
6.13
5.94
6.36

6.74
6.52
7.20
6.79
6.56
6.72
6.69

5.60
5.34
5.44
5.55
5.56
5.69
5.72

Long-term
35 centers.........................................
New Y ork C ity ..........................
7 other N o rth east......................
8 N orth C entral.........................
7 Southeast..................................
8 Southw est.................................
4 West C o ast..............................

5.64
5.35
5.99
5.42
7.07
6.16
5.80

6.44
6.36
6.64
6.58
7.28
6.44
6.20

6.98
5.75
7.59
6.39
7.81
6.57
7.55

7.55
6.39
8.36
7.69
6.97
6.85
8.16

N o t e . — Beginning Feb. 1971 the Quarterly Survey o f Interest Rates on
Business Loans was revised. F o r description o f revised series see pp. 468­
77 o f the June 1971 B u l l e t i n .




6.85
5.77
7.07
6.75
9.03
6.67
6.24

6.95
6.24
7.00
7.38
6.29
6.93
7.19

6.19
5.83
6.51
6.08
6.78
6.42
6.02

APRIL 1972 □ INTEREST RATES

A 35

MONEY MARKET RATES
(Per cent per annum)
Finance
Period

Prime
coml.
paper
4- to 6m onths1

CO.

paper
placed
directly,
3- to 6m onths2

U.S. Governm ent securities (taxable) 4
Prime
bankers’
accept­
ances,
90 days1

Federal
funds
ra te 3

3-month bills5

6-m onth bills5

9- to 12-month issues

R ate on
new issue

M arket
yield

Rate on
new issue

M arket
yield

1-year
bill (m ar­
ket yield) 5

O ther6

3- to 5year
issues7

1964...............................
1965...............................
1966..............................
1967..............................
1968..............................
1969..............................

3.97
4.38
5.55
5.10
5.90
7.83

3.83
4.27
5.42
4.89
5.69
7.16

3.77
4.22
5.36
4.75
5.75
7.61

3.50
4.07
5.11
4.22
5.66
8.22

3.549
3.954
4.881
4.321
5.339
6.677

3.54
3.95
4.85
4.30
5.33
6.64

3.686
4.055
5.082
4.630
5.470
6.853

3.68
4.05
5.06
4.61
5.48
6.84

3.74
4.06
5.07
4.71
5.45
6.77

3.76
4.09
5.17
4.84
5.62
7.06

4.06
4.22
5.16
5.07
5.59
6.85

1970..............................
1971...............................

7.72
5.11

7.23
4.91

7.31
4.85

7.17
4.66

6.458
4.348

6.42
4.33

6.562
4.511

6.55
4.51

6.53
4.67

6.90
4.75

7.37
5.77

1971—M ar...................
A pr....................
M ay..................
Ju n e..................
Ju ly...................
Aug...................
Sept...................
O ct.....................
N ov...................
D ec....................

4.19
4.57
5.10
5.45
5.75
5.73
5.75
5.54
4.92
4.74

4.05
4.27
4.69
5.24
5.54
5.57
5.44
5.30
4.81
4.60

3.80
4.36
4.91
5.33
5.60
5.57
5.49
5.05
4.78
4.45

3.71
4.15
4.63
4.91
5.31
5.57
5.55
5.20
4.91
4.1 4

3.323
3.780
4.139
4.699
5.405
5.078
4.668
4.489
4.191
4.023

3.38
3.85
4.13
4.74
5.39
4.93
4.69
4.46
4.22
4.01

3.431
3.927
4.367
4.890
5.586
5.363
4.934
4.626
4.338
4.199

3.50
4.03
4.34
4.95
5.62
5.22
4.97
4.60
4.38
4.23

3.61
4.09
4.64
5.32
5.73
5.52
5.20
4.75
4.49
4.40

3.66
4.21
4.93
5.57
5.89
5.67
5.31
4.74
4.50
4.38

4.74
5.42
6.02
6.36
6.77
6.39
5.96
5.68
5.50
5.42

1972—Jan.....................
Feb....................
M ar...................

4.08
3.93
4.17

3.95
3.78
4.03

3.92
3.52
3.95

3.50
3.29
3.83

3.403
3.180
3.723

3.38
3.18
3.72

3.656
3.594
4.086

3.66
3.63
4.12

3.78
4.05
4.42

3.99
4.07
4.54

5.33
5.51
5.74

Week ending—
1971—Dec.

4 ...........
11...........
18...........
2 5 ...........

4.88
4.88
4.75
4.75

4.73
4.70
4.63
4 .5 0

4.75
4.58
4.50
4.4 0

4.68
4.59
4.20
3.89

4.324
4.091
3.944
4.023

4.28
4.11
4.04
4.02

4.431
4.207
4.144
4.263

4.42
4.28
4.27
4.25

4.60
4.53
4.50
4.38

4.63
4.54
4.40
4.30

5.52
5.48
5.45
5.43

1972

Jan.

1 ...........
8 ...........
15...........
2 2 ...........
2 9 ...........

4.5 0
4.38
4.10
3.98
3.88

4.50
4.2 0
3.98
3.85
3.80

4.18
4.10
3.88
3.88
3.85

4.05
3.57
3.71
3.54
3.43

3.731
3.735
3.109
3.276
3.493

3.73
3.59
3.16
3.31
3.46

3.952
4.043
3.375
3.452
3.754

4.03
3.92
3.43
3.58
3.71

4.09
4.03
3.65
3.64
3.79

4.15
4.11
3.92
3.94
4.00

5.27
5.31
5.20
5.32
5.47

Feb.

5 ...........
12...........
19...........
2 6 ...........

3.98
4.00
3.93
3.88

3.88
3.78
3.75
3.75

3.75
3.50
3.45
3.43

3.23
3.25
3.43
3.34

3.367
3.141
3.066
3.145

3.35
3.09
3.04
3.22

3.733
3.594
3.537
3.513

3.78
3.56
3.50
3.64

4.05
4.00
3.95
4.11

4.05
3.92
4.04
4.21

5.55
5.51
5.47
5.50

M ar.

4 ...........
11...........
18...........
2 5 ...........

3.90
4 .0 0
4 .2 0
4.30

3.80
3.88
4.03
4.13

3.60
3.73
4.03
4.13

3.18
3.43
3.88
3.91

3.446
3.553
3.845
3.920

3.44
3.56
3.85
3.81

3.762
3.796
4.195
4.322

3.78
3.86
4.25
4.27

4.17
4.21
4.51
4.50

4.19
4.22
4.64
4.72

5.60
5 57
5. ov
5.83

Apr.

1 ...........

4.33

4.2 0

4.13

4.09

3.849

3.82

4.354

4.36

4.67

4.89

5.92

1A v e r a g e s

o f d a ily o ffe rin g r a te s o f d e a le rs .

2 Averages o f daily rates, published by finance companies, for varying
maturities in the 90-179 day range.
3 Seven-day average for week ending Wednesday.




4

E x c e p t f o r n e w b ill is s u e s , y ie ld s a r e a v e r a g e s c o m p u te d f r o m d a ily
c lo s in g b id p ric e s .

5 Bills quoted on bank discount rate basis.
6 Certificates and selected note and bond issues.
7 Selected note and bond issues.

A 36

INTEREST RATES □ APRIL 1972
BOND AND STOCK YIELDS
(Per cent per annum)
G overnment bonds

Period

Corporate bonds

State
an d local

By selected
rating

United
States
(long­
term)

Total i

Aaa

Baa

196 2
196 3
196 4

3.95
4.00
4.15

3.30
3.28
3.28

3.03
3.06
3.09

3.67
3.58
3.54

4 62
4 50
4 57

196
196
196
196
196
197
197

4.21
4.66
4.85
5.25
6.10
6.59
5.74

3.34
3.90
3.99
4.48
5.73
6.42
5.62

3.16
3.67
3.74
4.20
5.45
6.12
5.22

3.57
4.21
4.30
4.88
6.07
6.75
5.89

4
5
5
6
7
8
7

64
34
82
51
36
51
94

1971—M a r
A pr.............
M ay ...........
June............
July.............
A ug.............
Sept.............
O ct..............
N ov............
D ec.............

5.71
5.75
5.96
5.94
5.91
5.78
5.56
5.46
5.44
5.62

5.26
5.49
5.99
5.98
6.12
5.84
5.45
5.05
5.20
5.24

5.00
5.22
5.71
5.65
5.75
5.56
5.09
4.75
4.94
4.99

5.56
5.85
6.36
6.36
6.58
6.21
5.86
5.38
5.53
5.55

7
7
8
8
8
8
7
7
7
7

84
86
03
14
14
12
97
88
77
75

1972—Ja.................n
Feb..............
M ar............

5.62
5.67
5.66

5.13
5.29
5.31

4.84
5.01
4.99

5.49
5.63
5.61

5
6
7
8
9
0
1

Stocks
By
group

Dividend/
price ratio

Earnings /
price ratio

T o ta l1
Aaa

Baa

Indus­
trial

Rail­
road

Public
utility

Pre­
ferred

Com­
mon

C om ­
m on

4 33
4 26
4 40

5.02
4.86
4.83

4.47
4.42
4.52

4 86
4 65
4 67

4.51
4.41
4.53

4.50
4.30
4.32

3.37
3.17
3.01

6 06
5 68
5 54

4
5
5
6
7
8
7

49
13
51
18
03
04
39

4.87
5.67
6.23
6.94
7.81
9.11
8.56

4.61
5.30
5.74
6.41
7.22
8.26
7.57

4
5
5
6
7
8
8

72
37
89
77
46
77
38

4.60
5.36
5.81
6.49
7.49
8.68
8.13

4.33
4.97
5.34
5.78
6.41
7.22
6.69

3.00
3.40
3.20
3.07
3.24
3.83
3.14

5
6
5
5
6
6

7
7
7
7
7
7
7
7
7
7

21
25
53
64
64
59
44
39
26
25

8.46
8.45
8.62
8.75
8.76
8.76
8.59
8.48
8.38
8.38

7.36
7.43
7.68
7.80
7.85
7.80
7.64
7.58
7.46
7.42

8
8
8
8
8
8
8
8
8
8

39
37
40
43
46
48
39
25
13
12

8.08
8.05
8.23
8.39
8.34
8.30
8.12
8.04
7.96
7.92

6.48
6.59
6.82
6.99
7.03
7.04
6.90
6.75
6.78
6.81

3.10
2.99
3.04
3.10
3.13
3.18
3.09
3.16
3.31
3.10

s 52

7 66
7 68
7 66

7 19
7 77
7 24

8.23
8.23
8.24

7.34
7.39
7.35

7 98
8 00
8 03

7.85
7.84
7.81

6.57
6.67
6.76

2.96
2.92
2.86

87
72
71
84
05
28

s 74
s 65

Week ending—
1972—Jan.

1 ...
8. . .
1 5 ...
22...
29. . .

5.60
5.61
5.57
5.61
5.67

5.04
5.05
5.00
5.16
5.31

4.75
4.75
4.65
4.90
5.05

5.40
5.40
5.40
5.50
5.65

7
7
7
7
7

70
67
65
63
67

7
7
7
7
7

22
19
17
16
22

8.31
8.27
8.21
8.18
8.24

7.37
7.36
7.33
7.31
7.36

8
8
8
7
7

06
02
00
95
95

7.88
7.86
7.84
7.82
7.87

6.79
6.68
6.52
6.49
6.57

2.99
2.97
2.95
2.94
2.99

Feb.

5 ...
12. . .
1 9 .. .
2 6 .. .

5.70
5.71
5.65
5.63

5.36
5.26
5.26
5.29

5.10
5.00
5.00
4.95

5.70
5.60
5.60
5.60

7
7
7
7

68
70
68
67

7
7
7
7

25
29
28
26

8.26
8.25
8.23
8.21

7.39
7.42
7.39
7.35

7
8
8
8

99
00
01
01

7.85
7.84
7.83
7.83

6.62
6.71
6.64
6.71

2.93
2.91
2.91
2.92

Mar.

4 . ..
II . . .
18. . .
2 5 . ..

5.62
5.62
5.67
5.68

5.31
5.18
5.30
5.35

5.00
4.90
5.00
5.00

5.60
5.50
5.60
5.65

7
7
7
7

67
66
66
67

7
7
7
7

25
24
22
24

8.21
8.22
8.24
8.26

7.35
7.34
7.34
7.36

8
8
8
8

03
02
02
04

7.82
7.81
7.81
7.82

6.74
6.80
6.78
6.71

2.86
2.82
2.85
2.87

Apr.

I...

5.69

5.40

5.05

5.70

7 67

7 24

8.25

7.37

8 04

7.82

6.75

2.89

N um ber o f issues2

8

20

20

30

40

29

40

14

500

5

5

1 Includes bonds rated Aa and A, data for which are not shown sep­
arately. Because o f a limited num ber o f suitable issues, the number
of corporate bonds in some groups has varied somewhat. As o f Dec.
23, 1967, Aaa-rated railroad bonds are no longer a com ponent o f the
railroad average o r the Aaa composite series.
2 N um ber o f issues varies over tim e; figures shown reflect most recent
count.
N o t e . — A nnual yields are averages o f monthly or quarterly data.
Bonds: M onthly and weekly yields are computed as follows: (1) U.S.

119

500

Govt.: Averages of daily figures for bonds maturing or callable in 10 years
or more. (2) State and local govt.: General obligations only, based on
Thurs. figures. (3) Corporate: Averages o f daily figures. (2) and (3) are
from M oody’s Investors Service series.
Stocks: Standard and P oor’s corporate series. Dividend/price ratios
are based on Wed. figures; earnings/price ratios are as o f end o f period.
Preferred stock ratio is based on eight median yields for a sample o f noncallable issues— 12 industrial and two public utility; common stock ratios
on the 500 stocks in the price index. Quarterly earnings are seasonally
adjusted at annual rates.

Notes to tables on opposite page:
Security P rices:

Terms on M ortgages:

1 Begins June 30,1965, at 10.90. On that day the average price o f a share
o f stock listed on the American Stock Exchange was $10.90.

i
Fees and charges—related to principal mortgage am ount—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 o f property ownership.

N o t e . —A nnual data are averages o f monthly figures. Monthly and
weekly data are averages o f daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on preceding page on basis o f an assumed 3 per
cent, 20-year bond. Municipal and corporate bonds, derived fro m average
yields as computed by Standard and Poor’s Corp., on basis o f a 4 per cent,
20-year bond; Wed. closing prices. Common stocks, derived from com­
ponent common stock prices. Average daily volume o f trading, normally
conducted 5 days per week for 5 Vi 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 num ber o f hours: 1967—Aug. 8-20, 20; 1968—Jan. 22M ar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3 ,2 0 ; July 7-D ec. 31­
22.5; 1970—Jan. 2-M ay 1, 25.




N o t e . —Compiled by Federal Home Loan Bank Board in cooperation
with Federal Deposit Insurance C orporation. D ata are weighted averages
based on probability sample survey o f characteristics of mortgages
originated by m ajor institutional lender groups (including mortgage
companies) for purchase of single-family homes. D ata exclude loans for
refinancing, reconditioning, or m odernization; construction loans to
homebuilders; and perm anent loans that are coupled with construction
loans to owner-builders. Series beginning 1965, not strictly comparable
with earlier data. See also the table on H ome-M ortgage Yields, p. A-55.

APRIL 1972 □ SECURITY MARKETS

A 37

SECURITY PRICES
C om m on stock prices
Bond prices
(per cent o f par)

New York Stock Exchange

Period

Standard and Poor’s index
(1941-43= 10)
U.S.
Govt.
(long­
term)

State
and
local

C or­
porate

86.94
86.31
84.46
83.76
78.63
76.55
72.33
64.49
60.52
68.80

112.0
111.3
111.5
110.6
102.6
100.5
93.5
79.0
72.3
80.0

96.2
96.8
95.1
93.9
86.1
81.8
76.4
68.5
61.6
65.0

1971—M a r ... .
A p r.. . .
M ay . . .
J u n e . ..
J u ly .. . .
A ug___
Sept . . .
O ct....... .
N o v ... .
D ec........

67.94
67.57
65.72
65.84
66.16
67.33
69.35
70.33
70.47
68.80

82.8
80.4
75.6
74.8
74.0
77.4
81.7
84.7
84.1
83.5

65.8
65.1
63.7
63.5
63.2
63.4
64.2
65.2
66.4
66.5

99.60
103.04
101.64
99.72
99.00
97.24
99.40
97.29
92.78
99.17

1972—Ja ............n
Feb........
M ar.......

68.79
68.32
68.43

84.6
83.8
84.1

196
196
196
196
196
196
196
196
197
197

2
3
4
5
6
7
8
9
0
1

New York Stock Exchange index
(Dec. 31, 1965 = 50)

Indus­
trial

Trans­
porta­
tion

Indus­
trial

R ail­
road

Public
utility

62.38 65.54
69.87 73.39
81.37 86.19
88.17 93.48
85.26 91.09
91.93 99.18
98.70 107.49
97.84 107.13
83.22 91.29
98.29 108.35

30.56
37.58
45.46
46.78
46.34
46.72
48.84
45.95
32.13
41.94

59.16
64.99
69.91
76.08
68.21
68.10
66.42
62.64
54.48
59.33

44.16
50.77
55.37
54.67
45.72
54.22

43.79
51.97
58.00
57.45
48.03
57.92

48.23
53.51
50.58
46.96
32.14
44.35

44.77
45.43
44.19
42.80
37.24
39.53

109.59
113.68
112.41
110.26
109.09
107.26
109.85
107.28
102.21
109.67

39.70
42.29
42.05
42.12
42.05
43.55
47.18
44.58
41.19
43.17

62.42
62.06
59.20
57.90
60.08
57.51
56.48
57.41
55.86
57.07

54.89
56.81
56.00
55.06
54.83
53.73
54.95
53.76
51.17
54.76

58.43
60.65
60.21
59.25
58.70
57.62
59.13
57.52
54.50
58.85

41.71
45.35
45.48
44.90
44.02
44.83
48.09
47.02
44.29
48.34

67.1
66.7
66.2

103.30 114.12
105.24 116.86
107.69 119.73

45.16
45.66
46.48

60.19
57.41
57.73

57.19
58.45
59.96

61.33
63.36
65.18

Total

Total

Utility

Fi­
nance

Amer­
ican
Stock
Ex­
change
total
indexl

V olume of
trading in
stocks
(thousands of
shares)

NYSE A M EX

44.43
49.82
65.85
70.49
54.64
70.38

8.52
9.81
12.05
14.67
19.67
27.72
28.73
22.59
25.22

3,820
4,573
4,888
6,174
7,538
10,143
12,971
11,403
10,532
17,429

1,225
1,269
1,570
2,120
2,752
4,508
6,353
5,001
3,376
4,234

41.60
41.73
39.70
38.71
39.72
38.17
37.53
37.93
36.87
37.52

70.66
73.91
70.89
70.01
70.42
69.41
72.14
71.24
68.98
72.28

25.88
26.43
26.03
25.61
25.46
24.84
25.47
25.24
24.10
25.04

16,955
19,126
15,157
13,802
12,634
14,574
12,038
13,340
13,163
17,171

5,570
5,685
4,157
3.488
3,080
3,473
3,259
3,622
3,234
4,777

50.56
52.80
53.71

40.02
38.56
38.56

74.24
73.74
77.15

26.46
27.52
28.03

18,072
18,817
18,351

5,516
6,328
5,680

Week ending—
M ar.

4
11
18
25

68.75
68.77
68.32
68.21

84.0
85.3
84.3
83.7

66.6
66.3
66.0
66.1

107.07 119.08
108.78 120.99
107.62 119.57
107.28 119.23

45.61
46.61
47.15
46.44

57.37
58.11
58.11
57.81

59.55
60.59
59.97
59.70

64.85
65.91
65.12
64.80

53.52
54.60
53.88
53.02

38.31
38.98
38.87
38.50

74.58
76.89
76.88
78.06

27.95 20,964
28.31 21,220
28.14 18,260
27.79 16,844

7,021
7,431
5,139
4,762

Apr.

1

68.14

83.3

66.0

107.04

46.19

56.95

59.60

64.79

53.21

37.92

78.26

27.82

3,795

119.08

13,951

For notes see opposite page.

TERMS ON CONVENTIONAL FIRST MORTGAGES
New homes
Period

C on­
tract
rate
(per
cent)

Fees &
charges
(per
cent) 1

M aturity
(years)

Loan /
price
ratio
(per
cent)

Existing homes
P ur­
Loan
chase
amount
price
(thous.
of
(thous. of
dollars)
dollars)

Con­
tract
rate
(per
cent)

Fees &
charges
(per
cent) 1

M aturity
(years)

Loan /
price
ratio
(per
cent)

Pur­
Loan
chase
am ount
price
(thous.
of
(thous. of dollars)
dollars)

1965..........................
1966..........................
1967..........................
1968.........................
1969..........................
1970.........................
1971.........................

5.74
6.14
6.33
6.83
7.66
8.27
7.60

.49
.71
.81
.89
.91
1.03
.87

25.0
24.7
25.2
25.5
25.5
25.1
26.2

73.9
73.0
73.6
73.9
72.8
71.7
74.3

25.1
26.6
28.0
30.7
34.1
35.5
36.3

18.3
19.2
20.4
22.4
24.5
25.2
26.5

5.87
6.30
6.40
6.90
7.68
8.20
7.54

.55
.72
.76
.83
.88
.92
.77

21.8
21.7
22.5
22.7
22.7
22.8
24.2

72.7
72.0
72.7
73.0
71.5
71.1
73.9

21.6
22.2
24.1
25.6
28.3
30.0
31.7

15.6
15.9
17.4
18.5
19.9
21.0
23.1

1971

Feb...............
M ar..............
A pr...............
M ay.............
J u n e ............
July..............
Aug..............
Sept..............
O ct...............
N ov..............
Dec...............

7.74
7.52
7.37
7.36
7.38
7.51
7.60
7.67
7.68
7.65
7.62

1.00
.83
.73
.71
.74
.90
.84
.97
.97
.87
.93

26.2
25.9
26.3
26.1
26.3
26.3
26.2
25.8
26.4
26.7
26.6

73.9
73.7
73.6
74.0
73.7
74.5
73.9
75.3
75.5
75.4
74.5

37.0
35.9
36.0
36.7
37.5
36.8
36.5
35.1
35.2
36.7
36.4

26.2
26.0
26.2
26.7
27.3
27.1
26.5
25.9
26.3
27.3
26.5

7.67
7.47
7.34
7.33
7.38
7.50
7.58
7.63
7.62
7.56
7.51

.79
.77
.75
.71
.74
.75
.76
.79
.79
.79
.80

24.0
24.1
24.2
24.0
24.3
24.2
24.5
24.2
24.1
24.3
24.6

73.1
73.5
73.6
73.2
73.9
74.5
74.2
74.5
74.2
74.6
74.6

31.1
31.7
31.8
32.3
32.9
31.6
31.9
30.7
31.2
31.6
32.5

22.5
23.0
23.1
23.3
23.9
23.2
23.5
22.5
22.9
23.2
23.9

1972—J a n .r ............
Feb...............

7.62
7.43

.95
1.01

26.5
27.0

75.0
76.4

37.3
37.1

27.6
27.8

7.45
7.37

.82
.75

24.9
25.0

74.7
75.5

32.5
32.8

24.1
24.3

F or notes see opposite page.




A 38

STOCK MARKET CREDIT □ APRIL 1972
STOCK MARKET CUSTOMER FINANCING
(In millions o f dollars)
M argin credit at brokers and banks 1
Regulated :

End o f period

U nregu­
lated 3

By source

By type
M argin stock

Total

Convertible
bonds

Brokers Banks

Subscription
issues

Brokers Banks Brokers Banks Brokers Banks

Other
security
credit
a t banks 4

Free credit balances
at brokers 5

Nonm argin
stock
credit at
banks
Margin
accts.

Cash
accts.

1971—Feb..
M ar.
Apr.
M ay
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

5,174
5,392
5,598
5,701
5,783
5,860
5,917
5,990
6,016
5,995
6,835

4,311
4,531
4,776
4,874
4,976
5,050
5,121
5,208
5,238
5,198
c5,700

863
861
822
827
807
810
796
782
778
797
835

4,090
4,300
4,530
4,620
4,720
4,790
4,850
4,930
4,950
4,910
c5 ,400

776
772
739
754
733
737
723
713
711
731
764

186
193
206
213
213
215
227
230
239
242
258

70
72
67
57
58
56
58
54
53
51
57

35
38
40
41
43
45
44
48
49
46
42

1,121
1,137
1,122
1,122
1,228
1,091
1,208
1,182
1,194
1,193
1,197

1.205
1.183
1.206
1,235
1,263
1.183
1,206
1,237
1,204
1,209
1,298

484
465
445
431
415
410
405
364
393
412
387

2,259
2,333
2,216
2,084
2,023
1,841
1,838
1,734
1,765
1,758
1,837

1972—Jan.
Feb.,

6,850
7,427

5,989
6,477

861
950

5,700
6,180

789
877

252
256

56
56

37
41

1,182
1,170

1,313
1,327

448
434

2,040
2,108

1 M argin credit includes all credit extended to purchase o r carry stocks
or related equity instruments and secured at least in part by stock (see
Dec. 1970 B u l l e t i n ) . Credit extended by brokers is end-of-month data
for mem ber firms o f the NYSE. June d ata 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
o f security credit outstanding at banks on June 30, 1971.
2 In addition to assigning a current loan value to m argin stock generally,
Regulations T and U permit special loan values for convertible bonds and
stock acquired through exercise o f subscription rights.

3 N onm argin stocks are those not listed on a national securities exchange
and not included on the Board o f Governors o f the Federal Reserve
System’s list of OTC margin stocks. A t banks, loans to purchase o r carry
nonm argin stocks are unregulated; at brokers, such stocks have no loan
value.
4 Includes loans to purchase o r carry margin stock if these are unsecured
or secured entirely by unrestricted collateral (see Dec. 1970 B u l l e t i n ) .
5 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.

EQUITY STATUS OF MARGIN ACCOUNT DEBT
AT BROKERS

SPECIAL MISCELLANEOUS ACCOUNT BALANCES
AT BROKERS, BY EQUITY STATUS OF ACCOUNTS

(Per cent o f total debt, except as noted)

(Per cent o f total, except as noted)

End o f
period

Total
debt
(mil­
lions
of
dol­
lars) 1

1971— F e b ..
M ar..
A p r..
M ay.
June.
J u ly ..
Aug..
Sept..
Oct...
N ov..
D e c ..

Equity class (per cent)
End o f period
80 or
more

70-79

60-69

50-59

40-49

Under
40

4,090
4,300
4,530
4,620
4,720
4,790
4,850
4,930
4,950
4,910
c5,400

11.4
11.8
11.8
10.6
9 .6
8.3
9.3
8 .7
7.5
7.3
8 .6

19.5
2 0 .0
20.3
15.7
14.4
12.2
14.4
13.1
10.9
10.7
12.7

31.1
33.0
35.0
36.7
34.9
29.1
35.4
34.3
28.7
25.9
27.1

16.3
16.2
15.0
18.0
20.1
25.2
19.6
20.7
24.4
26.2
29.9

9 .3
7 .2
6 .2
7 .4
8.6
11.0
8.9
9 .9
12.1
13.1
10.2

12.3
11.8
11.7
11.6
12.2
14.1
12.6
13.3
16.3
16.8
11.5

1972—Ja n ... c5 ,700
F eb .. 6,180

8.7
8.4

13.5
12.4

27.1
25.9

32.6
35.1

8.5
8.5

9 .6
9 .7

N o t e . —Each custom er’s equity in his collateral (market value o f col­
lateral less net debit balance) is expressed as a percentage o f current col­
lateral values.




Equity class of accounts
in debit status

Total
balance
(millions
60 per cent Less than o f dollars)
or more 60 per cent

J u n e ........................
July.........................
Aug.........................

49.1
48.6
46.8
46.5
45.1
45.2
44.6
44.2
45.5
44.6
35.0

44.2
45.5
48.1
47.1
47.8
46.7
48.0
47.0
45.2
45.1
55.7

6.7
5.9
5.1
6.4
7 .0
8.1
7 .4
8.8
9.3
10.2
9 .4

4,380
4,400
4,500
4,360
4,250
4,190
4,230
4,160
4,060
4,000
7,300

1972—Jan ..........................
Feb.........................

36.8
35.1

55.9
57.0

7.3
7.9

5,780
5,910

1971

1 See note 1 to table above.

N et
credit
status

Feb.........................

N o t e . —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 o f other
collateral in the custom er’s margin account or deposits o f cash (usually
sales proceeds) occur.

APRIL 1972 □ SAVINGS INSTITUTIONS

A 39

M UTUAL SAVINGS BANKS
(In millions o f dollars)
Loans

End o f period

M ort­
gage

Other

Securities

U.S.
Govt.

C orpo­ Cash
rate
and
o th e r1

State
and
local
govt.

Other
assets

Total
assets—
Total
liabili­
ties
and
general
reserve
accts.

D epos­
its 2

44,606
48,849
52 443
55,006

943
989
1 124
1,114

4
4
4
4

M ortgage loan
commitments 3
classified by m aturity
(in m onths)

Other General
liabili­ reserve
ac­
ties
counts
3 or
less

3-6

6-9

Total

Over
9

1

1963.................
1964.................
1965.................
1966.................

36,007
40,328
44,433
47,193

607
739
862
1,078

5,863
5,791
5,485
4,764

440
391
320
251

5,074
5,099
5,170
5,719

912
1,004
1,017
953

1 024

49,702
54 238
58 232
60 982

1967.................
1968.................
1969.................
1970.................

50,311
53,286
55,781
57,775

1,203
1,407
1,824
2,255

4,319
3,834
3,296
3,151

219 8,183
194 10,180
200 10,824
197 12,876

993
996
912
1,270

1,138
1,256
1,307
1,471

66,365
71,152
74,144
78,995

60,121
64,507
67,026
71,580

1,260
1,372
1,588
1,690

4,984
5,273
5,530
5,726

742
811
584
619

1971—J a n . . ..
F e b ....
M a r .. .
A p r.. . .
M a y ...
June. .
J u l y . ..
Aug. ..
S e p t.. .
O ct___
N o v ...
D ec__

58,014
58,194
58,540
58,796
59,111
59,546
59,935
60,350
60,622
61,036
61,473
62,069

2,365
2,592
2,636
2,727
2,813
2,696
2,545
2,685
2,782
2,840
2,891
2,808

3,196
3,328
3,356
3,340
3,441
3,409
3,558
3,517
3,467
3,382
3,346
3,334

206
222
246
278
330
319
326
338
339
343
357
385

13,457
13,919
14,882
15,519
16,070
16,649
16,969
17,159
17,282
17,292
17,452
17,674

1,129
1,270
1,287
1,254
1,261
1,281
1,198
1,151
1,177
1,250
1,280
1,389

1,564
1,575
1,635
1,656
1,659
1,665
1,750
1,692
1,742
1,712
1,695
1,711

79,930
81,100
82,581
83,570
84,686
85,565
86,282
86,892
87,410
87,856
88,495
89,369

72,441
73,366
75,002
75,824
76,656
77,683
78,130
78,437
79,236
79,648
80,165
81,440

1,739
1,926
1,746
1,882
2,116
1,956
2,198
2,423
2,129
2,150
2,218
1,810

5,750
5,809
5,832
5,863
5,914
5.926
5,924
6,031
6,045
6,059
6,112
6,118

638
723
840
993
1,152
1,118
1,015
978
1,086
1,125
1,129
1,047

322
352
413
445
470
517
582
557
509
415
554
627

285
283
322
360
385
343
347
374
422
484
461
463

705
790
864
1,005
1,171
1,244
1,260
1,246
1,196
1,230
1,231
1,310

1972—J a n .* ..

62,258

3,225

3,261

433

18,417

1,246

1,801

90,641

82,326

1,962

6,352

1,045

676

409

1,442 3,572

799

1 Also includes securities o f foreign governments and international
organizations and nonguaranteed issues o f U.S. Govt, agencies.
2 See note 8, p. A-19.
3 Commitments outstanding o f banks in New York State as reported to
the Savings Banks Assn. o f the State o f New York. D ata include building
loans beginning with Aug. 1967.
4 Balance sheet d ata beginning Jan. 1972 are reported on a gross of
valuation reserves basis. The d ata differ somewhat from balance sheet

153
400
665
863

2,549
2,820
2,697
2,010

982
799 2,523
1,034
1,166 3,011
452
946 2,467
485
322
302
688 1,931
1,950
2,148
2,439
2,804
3,178
3,222
3,204
3,155
3,213
3,253
3,375
3,447

data previously reported by NAMSB which were net o f valuation reserves.
F or most items, however, the differences are relatively small.
N o t e . — N ational Assn. o f M utual Savings Banks d ata; figures are
estimates for all savings banks in the U nited States and differ somewhat
from those shown elsewhere in the B u l l e t i n ; the latter are for call dates
and are based on reports filed with U.S. Govt, and State bank supervisory
agencies.

LIFE INSURANCE COMPANIES
(In millions o f dollars)
Governm ent securities
End o f period

Total
assets

Total

Business securities

United State and Foreign 1
States
local

Total

Bonds

Stocks

M ort­
gages

Real
estate

Policy
loans

O ther
assets

Statement value:
1963.
1964.
1965.
1966.
1967.
1968

141,121
149,470
158,884
167,022
177,832
188,636

12,438
12,322
11,679
10,837
10,573
10,509

5,813
5,594
5,119
4,823
4,683
4,456

3,852
3,774
3,530
3,114
3,145
3,194

2,773
2,954
3,030
2,900
2,754
2,859

60,780
63,579
67,599
69,816
76,070
82,127

53,645
55,641
58,473
61,061
65,193
68,897

7,135
7,938
9,126
8,755
10,877
13,230

50,544
55,152
60,013
64,609
67,516
69,973

4,319
4,528
4,681
4,883
5,187
5,571

6,655
7,140
7,678
9,117
10,059
11,306

6,385
6,749
7,234
7,760
8,427
9,150

Book value:
1966.
1967.
1968.
1969.
1970

167,022
177,361
187,695
197,208
207,254

10,864
10,530
10,483
10,914
11,068

4,824
4,587
4,365
4,514
4,574

3,131
2,993
3,036
3,221
3,306

2,909
2,950
3,082
3,179
3,188

68,677
73,997
79,403
84,566
88,518

61,141
65,015
68,575
70,859
73,098

7,536
8,982
10,828
13,707
15,420

64,661
67,575
70,071
72,027
74,375

4,888
5,188
5,573
5,912
6,320

9,911
10,060
11,284
13,825
16,064

8,801
11,011
10,881
9,964
10,909

1971-—J a n .r ...............................
Feb..................................
M ar.................................
A pr.................................
M ay ................................
Ju n e ................................
July.................................
Aug.................................
Sept.................................
Oct..................................
N ov.................................
D ec..................................

208,863
209,885
211,500
212,698
213,414
214,279
215,284
216,436
217,489
218,257
219,353
221,573

11,097
11,126
11,023
10,946
10,954
10,786
11,031
11,076
11,000
11,016
11,150
11,129

4,604
4,632
4,540
4,454
4,433
4,242
4,466
4,475
4,345
4,331
4,473
4,427

3,308
3,319
3,335
3,375
3,403
3,412
3,430
3,452
3,484
3,485
3,484
3,518

3,185
3,175
3,148
3,117
3,118
3,132
3,135
3,149
3,171
3,200
3,193
3,184

90,298
91,038
92,629
93,756
94,197
95,031
95,683
96,429
97,199
97,778
98,443
99,430

74,331
74,696
75,192
75,604
76,096
76,644
77,333
77,581
78,121
78,890
79,384
78,912

15,967
16,342
17,437
18,152
18,101
18,387
18,350
18,848
19,078
18,888
19,059
20,518

74,421
74,437
74,516
74,536
74,552
74,535
74,583
74,707
74,799
74,864
74,903
75,596

6,372
6,453
6,485
6,535
6,591
6,644
6,729
6,749
6,811
6,876
6,949
7,097

16,144
16,220
16,293
16,370
16,433
16,516
16,590
16,679
16,782
16,850
16,948
17,027

10,531
10,611
10,554
10,555
10,687
10,767
10,668
10,796
10,898
10,873
10,960
11,294

1972—Jan .......................................

223,312

11,325

4,594

3,535

3,196

101,350

80,087

21,263

75,517

7,097

17,074

10,949

1 Issues o f foreign governments and their subdivisions and bonds of
Year-end figures: A nnual statement asset values, with bonds carried
the International Bank for Reconstruction and Development.
on an amortized basis and stocks at year-end m arket value. Month-end
figures: Book value o f ledger assets. Adjustments for interest due and
N o t e . —Institute o f Life Insurance d ata; figures are estimates for all
accrued and for differences between m arket and book values are no t made
life insurance companies in the United States.
on each item separately but are included in total, in “ Other assets.”




A 40

SAVINGS INSTITUTIONS □ APRIL 1972
SAVINGS AND LOAN ASSOCIATIONS
(In millions o f dollars)

Assets
End o f period

M ortgage loan
com m itm ents4

Liabilities

O ther2

Total
assets—
Total
liabilities

3,315
3,926
3,979
4,015
3,900
3,366
3,442
2,962
2,438
3,506

4,775
5,346
6,191
7,041
7,960
8,378
9,107
9,571
8,606
9,326

16,767
18,297
18,264
18,615
18,571
19,281
18,972
18,663
18,971
19,096
18,293

3,235
3,362
3,132
2,986
2,769
2,139
2,077
2,056
2,166
2,284
2,783

19,691
20,687

2,785
2,826

M ort­
gages

Invest­
ment
secur­
ities 1

Cash

1961.........................
1962.........................
1963.........................
1964.........................
1965.........................
1966.........................
1967.........................
1968.........................
1969 5......................
1970 5......................

68,834
78,770
90,944
101,333
110,306
114,427
121,805
130,802
140,232
150,331

5 ,2 1 1
5,563
6,445
6,966
7,414
7,762
9,180
i 11,116
10,873
13,020

1971— Feb...............
M ar..............
A pr...............
May.............
J u n e ............
July..............
Aug..............
Sept..............
O ct...............
N ov..............
D ec...............

152,434
154,199
156,343
158,516
161,209
163,720
166,111
168,233
170,106
172,047
174,385

1972—J a n .r ............
Feb.?1...........

175,838
177,575

Savings
capital

Reserves
and un­
divided
profits

Bor­
rowed
money 3

Loans
in
process

82,135
93,605
107,559
119,355
129,580
133,933
143,534
152,890
162,149
176,183

70,885
80,236
91,308
101,887
110,385
113,969
124,531
131,618
135,538
146,404

5,708
6,520
7,209
7,899
8,704
9,096
9,546
10,315
11,228
11,991

2,856
3,629
5,015
5,601
6,444
7,462
4,738
5,705
9,728
10,911

1,550
1 999
2,528
2,239
2,198
1,270
2,257
2,449
2,455
3,078

1,136
1 221
1,499
1,729
1,849
2,136
2,462
2,803
3,200
3,799

807
1,602

1 872
2 193
2 572
2 549
2 707
1 482
3 004
3 584
2,812
4,393

9,416
9,560
9,723
9,976
10,002
10,084
10,312
10,474
10,603
10,811
10,842

181,852
185,418
187,462
190,093
192,551
195,224
197,472
199,426
201,846
204,238
206,303

151,402
155,510
157,721
159,881
162,986
164,524
165,633
168,303
169,796
171,358
174,472

12,041
12,023
12,010
12,027
12,336
12,337
12,329
12,339
12,327
12,325
13,187

10,068
9,809
8,602
7,745
7,874
8,011
8,203
8,388
8,353
8,439
9,048

3,152
3,491
3,868
4,327
4,725
4,944
5,023
4,996
5,001
4,960
5,072

5,189
4,585
5,261
6,113
4,630
5,408
6,284
5,400
6,369
7,156
4,524

2,069
3,130
3,370
3,505
3,537
3,144
2,880
2,639
2,537
2,511
2,345

5,225
6,445
7,359
8,300
8,545
8,555
8,311
8,004
7,806
7,759
7,237

10,926
11,147

209,240
212,235

177,738
180,538

13,250
13,254

8,053
7,274

4,874
4,850

5,325
6,319

2,508
3,326

7,510
8,666

1 U.S. Govt, securities only through 1967. Beginning 1968 the total
reflects liquid assets and other investment securities. Included are U.S.
G ovt, obligations, Federal agency securities, State and local govt, securi­
ties, time deposits at banks, and miscellaneous securities, except FHLBB
stock. 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 note 1.
3 Consists o f advances from FHLBB and other borrowing.
4 Insured savings and loan assns. only. D ata on outstanding commit­

Other

O utstand­
ing at
end o f
period

Made
during
period

ments are 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.
5 Balance sheet d ata for all operating savings and loan associations
were revised by the Federal Home Loan Bank Board for 1969 and 1970.
N o t e . — Federal Home Loan Bank Board data; figures are estimates for
all savings and loan assns. in the United States. D ata are based on
monthly reports o f insured assns. and annual reports o f noninsured assns.
D ata for current and preceding year are preliminary even when revised*

MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
Assets

End o f
period

Liabilities and capital

A d­
vances
to
mem­
bers

Invest­
ments

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

1971-- F e b ...
M ar. .
A p r...
M a y ..
J u n e ..
J u ly ..
Aug...
S e p t..
O c t...
N o v ..
D ec...

9,926
9,689
8,269
7,268
7,241
7,338
7,513
7,637
7,640
7,708
7,936

4,187
4,322
4,235
4,400
3,718
3,211
2,744
2,584
2,740
2,545
2,520

105
116
192
96
132
85
86
117
99
101
142

9,182
8,756
7,876
7,419
7,329
7,297
7,218
7,190
7,390
7,139
7,139

1972-—J a n .. .
F eb ...

7,238
6,515

3,412
3,805

156
115

7,139
6,731

1967
1968
1969,
1970
1971

Cash
and
de­
posits

Bonds
and
notes

M em ­
ber
de­
posits

Banks
for
cooperatives

M ort­
gage
loans
(A)

Deben­
tures
and
notes
(L)

Loans
to
cooper­
atives
(A)

Deben­
tures

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

3,094
3,425
2,828
2,379
2,112
1,699
1,532
1,522
1,450
1,548
1,789

1,619
1,628
1,627
1,620
1,602
1,600
1,603
1,600
1,603
1,607
1 ,618

15,448
15,420
15,308
15,242
15,363
15,674
16,304
16,732
17,202
17,535
17,791

1,949
2,014

1,647
1,696

17,977
18,220

Capital
stock

N o t e . —D ata from Federal Home Loan Bank Board, Federal National
M ortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts o f all agencies, except for stock o f FH LB ’s.
Bonds, debentures, and notes are valued at par. They include only publicly




Federal National
M ortgage Assn.
(secondary market
operations)

Federal
intermediate
credit banks

Deben­
tures

(L)

Loans
and
dis­
counts
(A)

1,506
1,577
1,732
2,030
2,076

1,253
1,334
1,473
1,755
1,801

15,111
15,122
15,477
15,142
14,795
15,638
15,260
16,241
16,984
17,138
17,701

2,164
2,153
2,113
2,056
2,041
1,997
1,942
1,942
2,030
2,076
2,076

17,442
17,814

2,098
2,149

Federal
land
banks

Bonds

(L)

M ort­
gage
loans
(A)

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

1,819
1,819
1,900
1,830
1,770
1,726
1,791
1,791
1,745
1,763
1,801

5,177
5,380
5,568
5,729
5,909
5,905
5,866
5,841
5,763
5,633
5,669

4,959
5,077
5,336
5,468
5,639
5,712
5,742
5,713
5,680
5,606
5,503

7,258
7,347
7,426
7,502
7,579
7,650
7,709
7,767
7,826
7,870
7,917

6,645
6,645
6,700
6,640
6,640
6,884
6,884
6,884
7,063
7,063
7,063

1,867
1,840

5,785
5,720

5,537
5,591

7,970
8,039

7,063
7,186

(L)

offered securities (excluding, for FH LB ’s bonds held within the FHLB
System) and are not guaranteed by the U.S. G ovt.; for a listing o f these
securities, see table below. Loans are gross o f valuation reserves and
represent cost for FN M A and unpaid principal for other agencies.




APRIL 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE
31NG ISSUES OF FEDERALLY SPONSORED AGENCIES, JANUARY 31, 19
Cou­
pon
rate

8.15
61/4
7%
5H
8 .3 5
5.70
4 .2 0
7.20
8 .4 0
8 .4 0
7.10
6.35
7.65
8.00
6.10
8.05
7.95
6 .5 0
7%
6.95
7.75
7.80
6.60

A m ount
(millions
o f dollars)

200
394
250
310
350
400
400
450
300
250
300
300
183
229
250
265
300
350
300
200
350
200
200

1.070
6.00
8.00
4.38

250
200
250

7 .5 0
8.38
8.63

400
250
200

6%
6Va

250
200
100
300
400
200
200
400

8 .7 0
8.40
7.40
8 .0 0
7.20

Agency, and date o f issue
and m aturity

Cou­ Am ount
pon
(millions
rate o f dollars)

Federal National M ortgage
Association— Cont.
D ebentures—C o n t:
11/10/70 - 3 /1 2 /7 3 ...
12/12/69 - 3 /1 2 /7 3 ...
6/12/61 - 6 /1 2 /7 3 ....
7/10/70 - 6 /1 2 /7 3 ....
7/12/71 -6 /1 2 /7 3 .........
3/10/70 - 9/10/73___
6/10/71 -9 /1 0 /7 3 .........
12/10/70 - 12/10/73. .
8/10/71 - 1 2 /1 0 /7 3 ....
12/1/71 - 3/11/74___
4/10/70 - 3/11/74. . ..
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 /1 0 /7 4 .........
5/10/71 - 1 2 /1 0 /7 4 ....
9/10/71 - 1 2 /1 0 /7 4 ....
11/10/70 - 3/10/75. . .
10/12/71 - 3 /1 0 /7 5 ...
4/12/71 -6 /1 0 /7 5 .........
10/13/70 - 9 /1 0 /7 5 ...
3/11/71 - 3/10/76.........
6/10/71 - 6/10/76.........
2/10/72 - 6/10/76........
11/10/71 - 9/10/76.. ..
7/12/71 - 12/10/76.. ..
2/13/62 - 2 /1 0 /7 7 ....
12/10/70 - 6/10/77. . .
5/10/71 -6 /1 0 /7 7 ........
9/10/71 -9 /1 2 /7 7 .........
10/12/71 - 12/11/78..
12/10/71 - 12/10/79. .
2/10/72 - 3/10/80........
1/21/71 - 6 /1 0/81.. ..
9/10/71 -9 /1 0 /8 1 ........
2 /1 0 /7 1 -6 /1 0 /8 2 .........
3/11/71 -6 /1 0 /8 3 .........
11/10/71 - 9 /1 2 / 8 3 ....
4/12/71 -6 /1 1 /8 4 .........
12/10/71 - 12/10/84. .

8.35
6.75
8.10
6.13
5.75
7.15
5.45
7.75
7.90
5.70
7.85
5.65
6.10
6.45
7.55
6.35
5.25
7.50
5.65
6.70
5.85
6.13
7.45
4%
6.38
6.50
6.88
6.75
6.55
6.88
7.25
7.25
6.65
6.75
6.75
6.25
6.90

450
250
146
350
550
300
350
500
500
400
350
400
350
250
300
250
450
300
600
500
350
500
250
450
300
300
198
250
150
300
300
350
250
250
250
250
200
250
200
250

Banks for cooperatives
D ebentures:
10/4/71 - 4/3/72.........
11/1/72 - 5/1/72...........
12/1/71 - 6/1/72.........
1/3/72 - 10/1/73...........
2/1/72 - 8/1/72.............
10/1/70 - 10/1/73___

5 Ys
4.85
4 Vi
4.65
3.80
7.30

295
312
357
346
430
100

7.30
8 .30

4'A

illior
lolla:

Agency, and date o f issue
and m aturity
Federal intermediate
credit banks
D ebentures:
6/1/71 - 3 /1 / 7 2 ..
7/1/71 - 4 /3 / 7 2 ..
8/2/71 - 5 /1 /7 2 ..
9 /1 /7 2 - 6/1/72..
10/4/71 - 7/3/72
11/1/71 - 8/1/72.
12/1/71 - 9/5/72
1/3/72 - 10/2/72.
2/1/72 - 11/1/72.
3/2/70 - 3/1/73.
9 /1 /7 0 -7 /2 /7 3 . .
7/1/71 - 1 /2 / 7 4 ..
1/4/71 - 7/1/74.
1/3/72 - 7/1/75..

Federal land banks
Bonds:
2/23/71 - 4 / 2 0 / 7 2 ....
4/20/71 - 4 / 2 0 / 7 2 .. ..
6/22/70 - 7/20/72. . .
9/14/56 - 9 /1 5 /7 2 ...
9/22/69 - 9 /1 5 /7 2 ...
10/23/72 - 10/23/72.
7/20/71 - 10/23/72...
7/20/70 - 1/22/73. . .
2/20/63 - 2/20/73-78
1/20/70 - 7 /2 0 /7 3 ...
8/20/73 - 7 /2 0 /7 3 ....
4/20/70 - 10/22/73. .
2/20/72 - 2 /2 0 /7 4 ...
10/20/70 - 4/22/74. .
10/21/71 - 7/27/74. .
4/20/71 - 10/21/74...
2/20/70 - 1 /2 0 /7 5 ...
4/20/65 - 4/21/75. . .
2/15/72 - 7/21/75
7/20/71 - 10/20/75...
2/21/66 - 2/24/76. . .
7/20/66 - 7/20/76.. .
10/27/71 - 10/20/77.
5/2/66 - 4/20/78___
2/20/67 - 1 /2 2 /7 9 ...
2/23/71 - 4 / 2 0 / 8 1 ....

not guaranteed by the U.S. G ovt.; see also note to table at bottom o f opposite page.

461
394
614
403
435
594
529
397
624
203
200
212
224
302

4.45

4'A

8.20
IV*
8.35
5Vh
6.50
7.95
4'A
8.45
7.95
7.80
4%
7.30
5.85
5.30
8H
4V8
5.70
7.20
5.00
5H
6.35
5H
5.00
6.70

300
437
442
109
337
200
446
407
148
198
350
300
155
354
326
300
220
200
425
300
123
150
300
150
285
224

A 42

FEDERAL FINANCE □ APRIL 1972
FEDERAL FISCAL OPERATIONS: SUMMARY
(In millions o f dollars)
U.S. budget

M eans o f financing

Receipt-expenditure account

Borrowings from the public 2

Period
Budget
receipts

N et
ex­
pendi­
tures

Fiscal year:
196 8
196 9
197 0
197 1

153,671
187,784
193,743
188,392

172,802
183,072
194,456
210,318

H alf year:
1970—Jan .-Ju n e. ..
Ju ly -D ee.r . .
1971—Ja n .-Ju n e . ..
Ju ly -D ee.. ..

102,910 96,893
87,583 104,117
100,830 106,234
93,100 110,608

M o n th :
1971— Fe b
M ar...............
A pr................
M ay...............
Ju n e ...............
Ju ly ...............
Aug................
Sept...............
O ct.................
N ov...............
D ec................

*-15,128
13,205
21,024
13,190
22,508
13,198
15,652
19,710
12,462
14,945
17,213

'16,696
18,328
17,769
16,882
19,669
18,507
19,276
18,265
18,677
18,798
17,085

1972—Ja................... n
Feb................

17,596
15,239

19,226
18,589

N et
lend­
ing

Budget
out­
lays1

Budget
surplus
or
deficit
(-)

Less: Invest­
Public Plus: ments by Govt,
E quals: Trea­
debt Agency
accounts
Less:
Total
sury
securi­ securi­
Special borrow ­ operat­
ties
ties
notes 3
ing
ing
Special O ther
balance
issues

178,833 -25,161 21,357 5,944
3,236 6,142
633
184,548
196,588 -2 ,8 4 5 17,198 -1,739
-23,033
27,211
211,425
-3 4 7

3,271
7,364
9,386
6,616

767 97,661
5,248 2,693 -1,310
16,633 18,240
-2 1
99 104,216
8,971
1,008 107,242 - 6 ,4 1 2
-3 2 8
948 111 ,557 -18,377 26,001 -1,119

5,451
1,807
4,810
2,803

2,324 -1,001 **1,463
-170 *•16,526 '1 ,3 9 8
318 18,646 -5 ,4 4 1
1,003
522
518
49
17,818
3,206
223
221
-3 4 5
270 17,152 -3 ,9 6 1
4,954
40 2,095
297 19,965 + 2 ,5 4 3
1,285
-5 5 3
1,059
49
18,556 -5 ,3 5 8
7.169
-9 6 0
1,861
306 19,582 - 3 ,9 3 0
9,293
20 2,309
-6 9
-5 0 3 - 1 ,0 1 9
18,196 + 1,513 -2,324
115 18,791 - 6 ,6 3 0
-3 3 4
50 - 1 ,6 9 0
149 18,947 - 4 ,0 0 2
2,686
-1 0
40
271
9,511
399 17,484
284 1,291

6,030
1,476
2,131
1,107

243
175

19,469
18,764

- 1 ,8 7 3
- 3 ,5 2 5

Less: Cash and
m onetary assets

-1,269
1.169

- 4 7 4 - 1 ,5 0 8
568 1,450

2,049 -1,119
2,089 -1,384
676
800

O ther
meaps
of
financ­
ing,
n et4

O ther

23,100
- 1 ,2 9 5
5,397
19,448

-3 9 7
596
2,151
710

346
157
642
523

- 4 ,4 1 5
16,257
3,191
21,556

2,918
54
657
973

-896
1,188
-882
-4 5 3
54 4,120
80 - 2 ,1 2 2

*■-364
324
-7 1
702
-1 7
122
150
+ 194
-1
47
22

*•237
675
-2 7 1
2,197
-3 1 0
4,226
6,854
-2 ,0 0 3
1,407
2,590
8,482

1,718
-3 ,3 7 0
4,365
-1,973
1,835
-1,559
2,337
470
-3,318
-2 ,3 2 4
1,328

M53
57 1,453
527 1,957
-7 2 3
-9 3 1
-2 6 8
-4 7 8
- 6 9 0 - 1 ,1 1 7
-8 1 9 - 1 ,4 0 7
281
1,239
-2 9 0
1,314
-1 7
-9 2 8
5,653 - 1 ,2 3 0

-3 6 9
286

134
1

-1 9 1
-4,018

1,026
-2 0 8

1,700
1,616
-5 8 1
-9 7 9

3,364
269
-9 8 2
3,586

2,573
-7 0 2

Selected balances
Treasury operating balance
End
of
period
F.R .
Banks

Tax
and
loan
accounts

O ther
deposi­
taries5

Federal securities

Total

Public
debt
securities

Agency
set .ities

Less:
Investm ents o f
G ovt, accounts
Special
issues

O ther

Less:
Special
n otes3

E quals:
Total
held
by
public

M em o:
D ebt o f
Govt.sponsored
corps.—
Now
private6

Fiscal year:
1968..........................
1969..........................
1970...........................
1971...........................

1,074
1,258
1,005
1,274

4,113
4,525
6,929
7,372

111
112
111
109

5,298
5,894
8,045
8,755

347,578
353,720
370,919
398,130

24,399
14,249
12,510
12,163

59,374
66,738
76,124
82,740

19,766
20,923
21,599
22,400

2,209
825
825
825

290,629
279,483
284,880
304,328

10,041
24,991
35,789
36,886

C alendar year:
1970...........................
1971...........................

1,156
2,020

6,834
9,173

109
113

8,099
11,306

389,158
424,131

12,491
11,044

77,931
85,544

21,756
22,922

825
825

301,138
325,884

38,802
*■39,860

M onth:
1971 Feb ...............
M ar...............
A pr................
M ay...............
Ju n e ..............
Ju ly ...............
A ug...............
Sept...............
Oct................
N ov...............
Dec................

1,064
858
1,322
874
1,274
1,274
987
2,102
1,876
1,996
2,020

6,725
3,561
7,462
5,938
7,372
7,372
8,408
7,763
4,667
2,223
9,173

109
109
109
109
109
113
113
113
113
113
113

7,898
4,528
8,893
6,920
8,755
8,755
9,508
9,978
6,655
4,331
11,306

390,664
391,668
391,891
396,845
398,130
405,299
414,962
412,268
411,934
414,620
424,131

12,503
13,021
12,676
12,716
12,163
11,203
11,223
10,720
10,770
10,760
11,044

78,843
79,366
79,586
81,681
82,740
84,601
86,910
85,904
84,213
84,253
85,544

21,461
21,784
21,714
22,417
22,400
22,522
22,672
22,853
22,853
22,900
22,922

825
825
825
825
825
825
825
825
825
825
825

302,038
302,713
302,442
304,638
304,328
308,554
315,408
313,406
314,812
317,402
325,884

38,183
37,814
38,694
37,275
36,886
37,985
37,116
37,380
39,530
39,392
*■39,860

1972—Jan ................
Feb................

2,860
884

8,118
6,075

5 134
134

11,112
7,094

422,862
424,032

10,570
11,137

84,037
85,486

22,522
22,839

825
825

326,017
326,019

*■39,701

1 Equals net expenditures plus net lending.
2 The decrease in Federal securities resulting from conversion to private
ownership o f Govt.-sponsored corporations (totaling $9,853 million) is
not included here. In the bottom panel, however, these conversions de­
crease the outstanding am ounts o f Federal securities held by the public
mainly by reductions in agency securities. The Federal National M ortgage
Association (FN M A ) was converted to private owership in Sept. 1968 and
the Federal intermediate credit banks (FICB) and banks for coopera­
tives in Dec. 1968.
3 Represents non-interest-bearing public debt securities issued to the
International M onetary Fund and international lending organizations.
New obligations to these agencies are handled by letters o f credit.




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 “ O ther deposi­
taries” (deposits in certain commercial depositaries th at have been con­
verted from a time to a demand basis to permit greater flexibility in
Treasury cash management).
6 Includes debt o f Federal home loan banks, Federal land banks, R .F .K .
Stadium Fund, FN M A (beginning Sept. 1968), FICB, and banks for
cooperatives (beginning Dec. 1968).
N o t e .—H alf years may not add to fiscal year totals due to revisions in
series which are n o t yet available on a monthly basis.

APRIL 1972 □ FEDERAL FINANCE

A 43

FEDERAL FISCAL OPERATIONS: DETAIL
(In millions o f dollars)
Budget receipts

Period
Total

Fiscal
196
196
197
197

W ith­
held

N on­
with­
held

R e­
funds

Net
total

9,527
10,191
13,240
14,522

68,726
87,249
90,412
86,230

Em ployment
taxes and
contributions1
Gross R e­
Un- Other Net
re­
empl. net
re­
funds
total
ceipts
Pay­ Self- insur. ceipts2
roll empl.
taxes

year:
8
9
0
1

153,671
187,784
193,743
188,392

57,301
70,182
77,416
76,490

20,951
27,258
26,236
24,262

H alf year:
1970—Jan.-June
July-D ee.
1971—Jan.-June
July-D ee.

102,910
87,584
100,830
93,180

38,619
37,465
39,045
38,449

20,465 12,759 46,325 19,858 1,226
565 42,469 12,744 1,467
5,569
18,693 13,957 43,781 17,576 2,068
574 43,465 13,262 1,448
5,589

M onth :
1971—Fe b
M ar.........
A pr..........
M ay........
Ju n e ........
Ju ly ..........
A ug.........
Sept.........
O ct..........
N ov..........
D ec.........

*•15,128
13,205
21,024
13,190
22,508
13,198
15,652
19,710
12,462
14,945
17,213

r7 ,244
6,605
5,939
6,224
6,690
6,221
6,706
5,513
5,941
7,245
6,823

1972—Ja n
Feb............

654
1,392
7,951
735
3,681
490
306
3,755
396
264
379

1,407
4,631
4,261
3,114
505
191
91
76
55
55
106

Social insurance taxes
and contributions

C orporation
income taxes

Individual income taxes

29,897
38,338
35,037
30,320

1,232
1,660
2,208
3,535

Excise Cus­
taxes toms

Estate Misc.
and
re­
gift ceipts 3

1,544
1,715
1,942
1,948

3,346
3,328
3,465
3,673

2,052
2,353
2,700
3,206

34,622
39,918
45,298
48,578

14,079
15,222
15,705
16,614

2,038
2,319
2,430
2,591

3,051
3,491
3,644
3,735

20,134 1,811
133
17,768
21,983 1,815
19,643
155

2,196
1,348
2,325
1,518

1,416
1,576
1,630
1,673

25,558
20,826
27,752
22,989

7,464
8,153
8,462
8,961

1,168
1,317
1,274
1,838

2,148 1,615
1,537 2,006
2,198 1,853
2,395 1,718

141
721
152
77
1,085
301
209 1,005
57
115
205
660
152
60
116
424
3
52

248
288
290
258
279
272
287
273
274
288
278

5,943 r 1,504
3,990 1,443
4,970 1,351
6,366 1,459
3,764 1,510
3,464 1,532
5,996 1,482
3,784 1,490
2,983 1,412
4,120 1,656
2,642 1,389

175
226
221
204
250
227
244
363
334
343
329

280
329
589
379
352
319
311
263
391
566
545

r363
328
248
313
318
258
245
312
324
293
286

743
819

259
224

621
596

344
347

27,680
32,521
37,190
39,751

r6,491
3,366
9,630
3.846
9,867
6,519
6,920
9,192
6,282
7,455
7,096

683
3,887
4,360
878
6,684
1,163
688
4,505
1,111
730
5,064

310
363
345
255
236
284
236
198
375
218
138

1 10,944
17,596 6,627 4,318
15,239 7,581
682 1,416 6.846

1,228
878

158 3,044
212 4,774

4,835
3,472
3,294
4,893
3,311
2,987
5,049
3,299
2,592
3,408
2,308

124
147

153
545

295 3,615
274 5,740

2,491
2,908
3,424
3,858

Budget outlays4

Period
Total

Fiscal year:
1968........................................
1969........................................
1970........................................
1971.......................................
1972er6.................................
1973e 6...................................

178,833
184,548
196,588
211,425
236,610
246,257

N a­
tional
de­
fense

Intl.
affairs

Space
re­
search

Agri­
cul­
ture

N at­
Com­ Com- Educa­
Health
tion
mun.
ural
merce
and
and
re­
and develop. man­
welfare
and
sources transp.
housing power

Vet­
erans

Inter­
est

6,882 13,744
7,640 15,791
8,677 18,312
9,787 19,608
11,127 20,067
11,745 21,161

Gen­
eral
govt.

Intragovt.
trans­
ac­
tio n s5

2,561
2,866
3,336
3,970
5,302
5,531

- 4 ,4 9 9
-5 ,1 1 7
- 6 ,3 8 0
- 7 ,3 7 6
-7 ,8 7 7
- 8 ,5 9 0

1,817
1,818
2,147
2,392

-4 ,0 1 5
-3 ,6 0 7
- 3 ,7 7 0
-3 ,8 2 2

80,517
81,232
80,295
77,663
78,030
78,310

4,619
3,785
3,570
3,093
3,960
3,844

4,721
4,247
3,749
3,381
3,180
3,191

5,943
6,221
6,201
5,097
7,345
6,891

1,655
8,094
7,921
2,081
2,480 9,310
2,676 11,282
4,376 11,872
2,450 11 ,550

4,076
6,739 43,780
6,525 49,395
1,961
2,965
7,289 56,785
3,382 8,649 70,213
4,039 10,140 82,249
4,844 11,281 87,775

H alf year:
1970—Jan .-Ju n e ................. 97,661 39,683
July-D ee................... 104,216 38,521
1971 —Jan .-Ju n e................. 107,242 39,178
Julv-D ec................... 111,557 35,755

1,627
1,409
1,684
1,752

1,910
1,720
1,661
1,777

711
4,633
464
5,999

1,017
1,561
1,101
1,952

4,651
5,808
5,488
6,030

1,291
1,677
1,705
2,181

4,314
3,744
4,905
4,355

30,432
32,710
37,503
38,131

4,537
4,626
5,162
5,003

9,687
9,597
10,014
10,050

'5,830
6,674
6,337
6,043
8,122
5,187
5,595
5,979
6,106
6,175
6,713

236
392
328
358
185
340
308
303
303
286
181

295
333
252
274
245
377
291
273
266
286
285

-8 9
-5 2
-2 1
94
-1 0 1
1,784
963
336
1,134
568
852

234
230
250
255
560
293
432
344
309
302
271

759
1,000
1,015
707
1,162
572
1,643
947
1,030
892
875

217
206
286
230
394
545
291
292
272
256
402

686
912
683
752
1,191
684
661
924
501
851
722

5,929
6,139
6,093
5,858
7,588
6,191
6,385
6,169
6,499
6,437
6,444

797
964
883
877
874
798
892
758
833
942
896

1,695
1,709
1,683
1,667
1,626
1,651
1,668
1,800
1,418
1,811
1,702

294 -3 5 7
-2 6 0
399
323
-2 9 4
361
-3 2 5
403 - 2 ,2 8 4
380
-2 4 0
533
386
287
-2 4 6
396
-2 7 6
334
-3 4 3
473 - 2 ,3 3 2

6,161
6,333

347
307

259
276

699
298

264
237

813
619

434
254

813
908

6,807
6,938

1,023
864

1,737
1,714

390
400

M onth:
1971—Feb............................. r 16,526
M ar............................ 18,646
Apr............................. 17,818
M ay........................... 17,152
Ju n e ........................... 19,965
Ju ly ............................ 18,556
A ug............................ 19,582
Sept............................ 18,196
O ct............................. 18,791
N ov........................... 18,947
D ec............................ 17,484
1972—Jan .............................
Feb.............................

19,469
18,764

1 Old-age, disability, and hospital insurance, and Railroad Retirement
accounts.
2 Supplementary medical insurance premiums and Federal employee
retirement contributions.
3 Deposits o f earnings by Federal Reserve Banks and other miscellane­
ous receipts.
4 Outlays by functional categories are published in the Monthly
Treasury Statement (beginning April 1969). M onthly back data (beginning
July 1968) are published in the Treasury Bulletin o f June 1969.




-2 7 7
-3 8 5

5 Consists o f government contributions for employee retirement and
interest received by trust funds.
6 Estimates presented in the Jan. 1973 Budget Document. Breakdowns do
not add to totals because special allowances for contingencies, Federal pay
increase, and allowance for revenue sharing, totaling $2,250 million for
fiscal 1972, and $5,000 million for fiscal 1973, are not included.
N o t e .—H alf years may not add to fiscal year totals due to revisions in
series which are not yet available on a monthly basis.

A 44

U.S. GOVERNMENT SECURITIES □ APRIL 1972
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions o f dollars)
Public issues
Total
gross
public
debt 1

End o f period

M arketable

N onm arketable

Total
Total

Bills

Certifi­
cates

Notes

30.0

6.0
10.1

33.6
119.5

50.2
48.3
61.4
76.5
85.4
101.2

104.2
99.2
95.2
85.3
69.9
58.6

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.
1970—Dec.

320.9
329.3
344.7
358.0
368.2
389.2

270.3
273.0
284.0
296.0
295.2
309.1

214.6
218.0
226.5
236.8
235.9
247.7

60.2
64.7
69.9
75.0
80.6
87.9

1971—M ar.
Apr.,
May,
June
July.
Aug.
Sept.
O ct..
Nov.
Dec.,

391.7
391.9
396.8
398.1
405.3
414.6
412.3
411.9
414.6
424.1

309.7
310.4
313.2
313.5
318.9
325.8
324.5
325.8
328.4
336.7

247.5
245.9
245.6
245.5
247.6
249.7
249.9
252.2
254.5
262.0

89.0
87.5
89.1
86.7
88.9
89.6
88.6
89.0
89.8
97.5

104.3
104.3
102.5
104.8
104.8
108.2
109.5
111.5
114.0
114.0

1972—Jan..
Feb..
Mar.

422.9
424.0
427.3

336.9
336.5
340.6

261.9
261.2
265.4

97.5
98.1
102.4

114.0
112.9
112.9

1 Includes ^non-interest-bearing debt (of which $624 million on M ar. 31,
1972, was not subject to statutory debt limitation).
2 Includes Treasury bonds an a m inor am ounts o f Panama Canal and
postal savings bonds.
3 Includes (not shown separately): depositary bonds, retirement plan
bonds, foreign currency series, foreign series, and R ural Electrification
Administration bonds; before 1954, Armed Forces leave bonds; before

5.9

Bonds 2

C on­
vert­
ible
bonds

Total 3

Special
issues 4

Sav­
ings
bonds
& notes

8.9
56.5

6 1
49.8

7.0
24.6

2.8
2.7
2.6
2.5
2 .4
2 .4

52.9
52.3
54.9
56.7
56.9
59.1

50.3
50.8
51.7
52.3
52.2
52.5

46.3
52.0
57.2
59.1
71.0
78.1

54.2
54.1
54.0
54.0
53.9
51.9
51.8
51.8
50.7
50.6

2 .4
2 .4
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3

59.9
62.1
65.2
65.7
68.9
73.8
72.2
71.3
71.6
72.3

53.0
53.2
53.4
53.6
53.8
54.0
54.2
54.4
54.7
54.9

80.0
79.7
81.7
82.8
84.7
87.0
86.0
84.3
84.4
85.7

50.4
50.2
50.1

2.3
2.3
2.3

72.7
73.0
72.9

55.1
55.3
55.6

84.2
85.6
84.9

1956, tax and savings notes; and before Oct. 1965, Series A investment
bonds.
4 Held only by U.S. Govt, agencies and trust funds and the Federal
home loan banks.
N o t e . —Based on Daily Statement o f U.S. Treasury. See also second
paragraph in N o t e to table below,,

OWNERSHIP OF PUBLIC DEBT
(Par value, in billions of dollars)
Held by private investors

Held b y Total
gross
public
debt

U.S.
Govt.
agencies
and
trust
funds

F.R.
Banks

1939—D ec.................
1946—D ec.................

41.9
259.1

6.1
27.4

2.5
23.4

1965— Dec.................
1966—D ec.................
1967—D ec.................
1968—D ec.................
1969—D ec.................
1970—D ec.................

320.9
329.3
344.7
358.0
368.2
389.2

59.7
65.9
73.1
76.6
89.0
97.1

1971—Feb..................
M ar.................
A pr..................
M ay................
J u n e ................
Ju ly .................
Aug.................
Sept.................
O ct..................
N ov.................
Dec..................

390.7
391.7
391.9
396.8
398.1
405.3
414.6
412.3
411.9
414.6
424.1

1972—Jan..................
Feb..................

422.9
424.0

End o f
period

M utual
savings
banks

Insur­
ance
com­
panies

Other
corpo­
rations

State
and
local
govts.

33.4
208.3

12.7
74.5

2.7
11.8

5.7
24.9

2.0
15.3

.4
6.3

1.9
44.2

7.5
20.0

.2
2.1

.3
9.3

40.8
44.3
49.1
52.9
57.2
62.1

220.5
219.2
222.4
228.5
222.0
229.9

60.7
57.4
63.8
66.0
56.8
62.7

5.3
4.6
4.1
3.6
2.9
2.8

10.3
9.5
8.6
8.0
7.1
7 .0

15.8
14.9
12.2
14.2
13.3
10.5

22.9
24.3
24.1
24.4
25.4
23.1

49.7
50.3
51.2
51.9
51.8
52.1

22.4
24.3
22.8
23.9
29.1
29.8

16.7
14.5
15.8
14.3
11.4
20.6

16.7
19.4
19.9
22.4
24.1
21.4

98.0
98.8
99.1
101.8
102.9
104.9
107.3
106.5
104.7
104.7
106.0

62.5
64.2
63.7
64.8
65.5
65.8
66.9
67.6
67.2
67.8
70.2

230.2
228.7
229.1
230.2
229.7
234.6
240.4
238.2
240.0
242.1
247.9

61.3
61.8
60.5
59.4
61.0
60.5
59.5
60.0
60.9
61.5
65.3

2.8
2.8
2.8
2.9
2.9
2.9
2.8
2.8
2.8
2.7
2.7

7.2
6.8
6.8
6.8
6.6
6.7
6.7
6.5
6.5
6.5
6.6

10.2
10.7
9.9
9 .6
10.1
11.6
10.9
10.0
11.1
12.0
12.6

24.0
22.8
21.8
21.8
21.4
21.9
21.1
21.0
20.8
20.6
20.4

52.3
52.5
52.8
53.0
53.2
53.4
53.6
53.7
54.0
54.2
54.4

28.3
26.9
26.2
25.0
24.8
24.8
24.5
24.1
23.7
23.4
23.0

22.9
25.4
29.2
33.8
32.7
35.4
42.7
42.4
42.8
44.1
46.9

21.1
18.9
19.1
18.1
17.2
17.3
18.6
17.7
17.4
17.1
16.0

104.4
106.2

69.6
67.7

248.9
250.2

62.8
62.1

2.7
2.7

6.5
6.5

12.2
12.5

21.1
22.0

54.6
54.9

22.8
22.4

48.2
48.9

18.0
18.2

1 Consists of investm ents of foreign and international accounts in
the U nited States.
8 C onsists o f savings and loan assns., nonprofit institutions, cor­
porate pension tru st funds, and dealers and brokers. Also included
are certain G ovt, deposit accounts and G ovt.-sponsored agencies.
N o t e . —Reported data for F.R . Banks and U.S. G ovt, agencies and
trust funds; Treasury estimates for other groups.




Individuals

Com ­
mercial
banks

Total

Savings
Other
bonds securities

Foreign O ther
and
misc.
inter­
inves­
national 1 tors 2

The debt and ow nership concepts were altered beginning w ith the
M ar. 1969 B u l l e t i n . The new concepts (1 ) exclude guaranteed se­
curities and (2) rem ove from U .S . G ovt, agencies and tru st funds
and add to other m iscellaneous investors the holdings of certain
G ovt.-sponsored but privately owned agencies and certain G ovt, deposit
accounts.

APRIL 1972 □ U.S. GOVERNMENT SECURITIES

A 45

OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions o f dollars)
W ithin 1 year
Type o f holder and date

All holders:
1969 Dec.
1970—Dec.
1971 Dec.
1972 Jan.
Feb.

Total
Total

Bills

O th e r

1-5
years

5-10
years

10-20
years

Over
20 years

31.............................................................
31.............................................................
3 1 .............................................................
3 1 .............................................................
2 9 .............................................................

235,863
247,713
262,038
261,918
261,215

118,124
123,423
119,141
119,152
122,067

80,571
87,923
97,505
97,517
98,122

37,553
35,500
21,636
21,635
23,945

73,301
82,318
93,648
93,645
93,089

20,026
22,554
29,321
29,318
26,347

8,358
8,556
9,530
9,484
9,459

16,054
10,863
10,397
10,317
10,253

U.S. Govt, agencies and trust funds:
1969 Dec. 31.....................................................
1970—Dec. 31.....................................................
1971—Dec. 3 1 .....................................................
1972 Jan. 3 1 .....................................................
Feb. 2 9 .....................................................

16,295
17,092
18,444
18,355
18,621

2,321
3,005
1,380
1,235
1,324

812
708
605
565
639

1,509
2,297
775
670
685

6,006
6,075
7,614
7,674
7,810

2,472
3,877
4,676
4,667
4,708

2,059
1,748
2,319
2,323
2,323

3,437
2,387
2,456
2,456
2,456

Federal Reserve Banks:
1969 Dec. 31.....................................................
1970— Dec. 31.....................................................
1971—Dec. 3 1 .....................................................
1972 Jan. 3 1 .....................................................
Feb. 2 9 .....................................................

57,154
62,142
70,218
69,552
67,698

36,023
36,338
36,032
35,259
34,574

22,265
25,965
31,033
30,296
28,300

13,758
10,373
4,999
4,963
6,274

12,810
19,089
25,299
25,287
26,318

7,642
6,046
7,702
7,855
5,647

224
229
584
559
566

453
440
601
593
594

Held by private investors:
1969 Dec. 31.....................................................
1970 Dec. 31.....................................................
1971—Dec. 3 1 .....................................................
1972 Jan. 3 1 .....................................................
Feb. 2 9 .....................................................

162,414
168,479
173,376
174,011
174,896

79,780
84,080
81,729
82,658
86,169

57,494
61,250
65,867
66,656
69,183

22,286
22,830
15,862
16,002
16,986

54,485
57,154
60,735
60,684
58,961

9,912
12,631
16,943
16,796
15,992

6,075
6,579
6,627
6,602
6,570

12,164
8,036
7,340
7,268
7,203

Commercial banks:
1969 Dec. 3 1 .............................................
1970—Dec. 31.............................................
1971—Dec. 3 1 ............................................
1972 Jan. 3 1 ............................................
Feb. 2 9 ............................................

45,173
50,917
51,363
49,517
48,971

15,104
19,208
14,920
13,531
14,868

6,727
10,314
8,287
7,007
6,928

8,377
8,894
6,633
6,524
7,940

24,692
26,609
28,823
28,716
27,384

4,399
4,474
6,847
6,537
6,035

564
367
555
533
490

414
260
217
201
195

M utual savings banks:
1969 Dec. 31.............................................
1970—Dec. 31.............................................
1971—Dec. 3 1 ............................................
1972 Jan. 3 1 ............................................
Feb. 2 9 ............................................

2,931
2,745
2,742
2,700
2,683

501
525
416
352
377

149
171
235
188
180

352
354
181
164
197

1,251
1,168
1,221
1,217
1,223

263
339
499
508
483

203
329
281
298
299

715
385
326
325
301

Insurance companies:
1969 Dec. 3 1 .............................................
1970—Dec. 31.............................................
1971—Dec. 3 1 ............................................
1972 Jan. 3 1 ............................................
Feb. 2 9 ............................................

6,152
6,066
5,679
5,605
5,575

868
893
720
656
659

419
456
325
289
309

449
437
395
367
350

1,808
1,723
1,499
1,482
1,441

253
849
993
1,005
1,024

1,197
1,369
1,366
1,371
1,369

2,028
1,231
1,102
1,091
1,082

Nonfinancial corporations:
1969 Dec. 3 1 .............................................
1970—Dec. 31.............................................
1971—Dec. 3 1 .............................................
1972 Jan. 3 1 .............................................
Feb. 2 9 ............................................

5,007
3,057
6,021
5,654
5,830

3,157
1,547
4,191
3,954
4,411

2,082
1,194
3,280
3,206
3,217

1,075
353
911
748
1,194

1,766
1,260
1,492
1,339
1,119

63
242
301
315
258

12
2
IS
20
16

8
6
20
26
27

Savings and loan
1969—Dec.
1970—Dec.
1971—Dec.
1972 Jan.
Feb.

associations:
3 1 .............................................
31.............................................
3 1 ............................................
3 1 ............................................
2 9 ............................................

3,851
3,263
3,002
3,129
3,125

808
583
629
713
835

269
220
343
416
481

539
363
286
297
354

1,916
1,899
1,449
1,443
1,330

357
281
587
646
631

329
243
162
148
149

441
258
175
180
180

State and local governments:
1969—Dec. 31.............................................
1970—Dec. 31.............................................
1971—Dec. 3 1 .............................................
1972—Jan. 3 1 ............................................
Feb. 2 9 ............................................

13,909
11,204
9,823
10,231
10,895

6,416
5,184
4,592
5,123
5,816

5,200
3,803
3,832
4,398
4,989

1,216
1,381
760
725
827

2,853
2,458
2,268
2,095
2,099

524
774
783
793
771

1,225
1,191
918
910
882

2,893
1,598
1,263
1,310
1,327

AH others:
1969— Dec.
1970—Dec.
1971—Dec.
1972—Jan.
Feb.

85,391
91,227
94,746
97,175
97,817

52,926
56,140
56,261
58,329
59,203

42,648
45,092
49,565
51,152
53,079

10,278
11,048
6,696
7,177
6,124

20,199
22,037
23,983
24,392
24,365

4,053
5,672
6,933
6,992
6,790

2,545
3,078
3,329
3,322
3,365

5,665
4,298
4,237
4,135
4,091

3 1 .............................................
31.............................................
3 1 ............................................
3 1 ............................................
2 9 ............................................

N o t e . — Direct public issues only. Based on Treasury Survey of
Ownership.
Beginning with Dec. 1968, certain Govt.-sponsored but privately owned
agencies and certain Govt, deposit accounts have been removed from U.S.
Govt, agencies and trust funds and added to “ All others.” Comparable data
are not available for earlier periods.
D ata complete for U.S. Govt, agencies and trust funds and F.R. Banks
but for other groups are based on Treasury Survey data. O f total m ar­




ketable issues held by groups, the proportion held on latest date by those
reporting in the Survey and the num ber o f owners surveyed were: (1)
about 90 per cent by the 5,653 commercial banks, 486 mutual savings
banks, and 738 insurance companies com bined; (2) about 50 per cent by
the 465 nonfinancial corporations and 487 savings and loan assns.; and
(3) about 70 per cent by 502 State and local govts.
“ All others,” a residual, includes holdings o f all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A 46

U.S. GOVERNMENT SECURITIES □ APRIL 1972
DEALER TRANSACTIONS
(Par value, in millions of dollars)
U.S. G overnment securities
By m aturity

By type o f custom er

Period
Total

Dealers and brokers
W ithin
1 year

1-5
years

5-10
years

Over
10 years
U.S. G ovt,
securities

Other

mercial
banks

All
other

U.S. Govt
agency
securities

1971—Feb..................................
M ar.................................
A p r.................................
M ay ................................
J u n e ................................
July.................................
Aug.................................
Sept.................................
O ct..................................
N ov.................................
D ec..................................

3,316
3,072
2,458
2,322
2,195
2,484
2,482
2,115
2,646
2,691
3,139

2,291
2,122
1,881
1,695
1,802
2,103
1,848
1,598
1,905
1,668
2,317

579
506
328
406
273
280
512
271
438
523
497

397
388
216
192
92
74
97
219
268
418
266

49
57
33
29
28
28
25
26
36
81
58

1,178
1,036
828
837
727
814
859
759
988
906
1,006

145
143
116
100
110
131
129
99
117
157
214

1,232
1,204
878
742
687
837
855
725
906
940
1,190

760
688
636
643
672
702
640
532
634
687
730

679
567
516
480
418
471
462
482
659
547
569

1972—Jan ...................................
Feb..................................

3,191
3,260

2,268
2,339

571
652

309
242

44
27

879
913

391
363

1,120
1,170

801
815

623
611

Week ending—
1972—Feb.

2 .........................
9 .........................
16.........................
2 3.........................

3,789
3,067
3,603
3,008

2,389
2,198
2,456
2,133

934
638
806
626

439
205
310
219

27
26
31
31

994
941
1,114
829

549
368
337
333

1,307
1,018
1,251
1,043

939
741
901
804

609
515
735
631

Mar.

1.........................
8.........................
15.........................
22.........................
29.........................

2,969
3,127
2,951
3,215
3,324

2,483
2,548
2,200
2,418
2,569

354
342
435
502
556

105
197
296
259
179

28
40
19
37
21

677
729
731
912
852

342
294
464
493
490

1,198
1,212
968
1,029
1,012

753
892
788
781
970

571
389
417
630
404

N o t e . — The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank o f New York.
They do not include allotments of, and exchanges for, new U.S. Govt,
securities, redemptions o f called or m atured securities, or purchases or

sales o f securities under repurchase agreement, reverse repurchase (resale),
or similar contracts. Averages of daily figures based on the num ber of
trading days in the period.

DEALER POSITIONS

DEALER FINANCING

(Par value, in millions o f dollars)

(In millions o f dollars)

U.S. Governm ent securities, by maturity
Period

Ail
Within
1
m aturi­
ties
year

1-5
years

5-10
years

Commercial banks

Over
10
years

U.S.
Govt.
agency
securi­
ties

Period

All
sources

New
Y ork
City

Else­
where

C orpora­
tio n s1

All
other

1971—Feb.................. 4,655
M ar................. 4,421
A p r................. 4,870
M ay................. 2,646
Ju n e................. 2,735
J u ly ................. 3,011
Aug.................. 2,897
Sept................. 3,856
O ct................... 4,353
N ov................. 5,846
Dec.................. 5,335

3,320
3,511
4,019
2,115
2,477
3,018
2,473
3,089
3,612
3,725
3,877

569
437
415
189
116
-2 3
344
355
394
914
626

691
404
416
331
130
26
70
377
310
943
600

75
70
20
11
12
-1 1
11
36
37
265
232

946
981
1,118
818
776
771
698
926
903
1,063
1,101

1971—Feb..............
M ar.............
A p r.............
M ay............
June ............
Ju ly .............
Aug.............
Sept.............
O ct..............
N ov.............
Dec.............

5,684
4,543
5,700
3,389
3,163
3,516
3,071
4,146
4,511
6,455
5,517

1,673
1,356
1,759
1,095
1,061
1,151
894
1,049
1,188
1,877
1,375

1,318
926
1,415
475
523
391
390
856
704
932
912

369
399
724
517
435
721
821
811
921
1,564
1,659

2,324
1,862
1,802
1,301
1,145
1,254
967
1,430
1,699
2,082
1,571

1972—Jan ...................
Feb..................

5,561
4,960

4,665
4,094

437
479

365
304

94
83

847
554

1972—Jan ..............
Feb..............

5,714
5,205

1,296
1,456

904
719

1,750
1,344

1,763
1,686

Week ending—

Week ending—

1972—Jan.

5 .........
12.........
19.........
2 6 .........

5,567
5,189
5,708
5,721

4,312
4,134
4,807
4,933

513
477
432
443

573
467
397
268

169
110
72
77

1,042
779
743
960

1972—Jan.

5 ...
1 2 ...
19. ..
26. ..

5,984
5,276
5,881
5,846

1,512
979
1 ,173
1,494

806
709
874
1,070

1,759
1,729
1,791
1,781

1,907
1,860
2,043
1,501

Feb.

2 .........
9 .........
16.........
23

5,683
5,088
4,299
4,827

5,017
3,885
3,364
4,144

424
761
508
321

164
361
340
282

78
81
87
80

712
493
508
664

Feb.

2 ...
9 ...
1 6 ...
2 3 . ..

5,732
5,811
4,993
4,583

1.501
1.556
1.072
1.387

1,021
865
555
580

1,625
1,539
1,286
1,271

1,584
1,852
2,080
1,345

N o t e . — The figures include all securities sold by dealers under repur­
chase contracts regardless o f the maturity date o f 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 am ount of
securities. Included in the repurchase contracts are some that more
clearly represent investments by the holders o f the securities rather than
dealer trading positions.
Average o f daily figures based on num ber o f trading days in the period.




1 All business corporations, except commercial banks and insurance
companies.
N o t e . — Averages o f daily figures based on the num ber of calendar days
in the period. Both bank and nonbank dealers are included. See also
N o t e to the table on the left.

APRIL 1972 □ GOVERNMENT SECURITIES

A 47

U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 1972
(In millions o f dollars)
Issue and coupon rate

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.
M ay
M ay
M ay
M ay
M ay
June
June
June
June
June
June
June
July
Julv
Julv
Julv
Julv
Aug.
Aug.
Aug.
Aug.
Aug.

6,
13,
20,
21,
27,
30,
4,
18,
25,
31,
1,
15,
21,
22,
29,
30,
6,
13,
20,
27,
31,
3,
10,
17,
24,
31,

Issue and coupon rate

Am ount

1972.................
1972.................
1972.................
1972f...............
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972f...............
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................
1972.................

A m ount

Treasury bills—Cont.
Sept. 7, 1972.............
3,901
Sept. 14, 1972.............
3,903
Sept. 21, 1972.............
3,901
Sept. 28, 1972.............
4,033
Sept. 30, 1972.............
3,902
Oct. 31, 1972.............
1,702
Nov. 30, 1972.............
3,902
Dec. 31, 1972.............
3,901
Jan. 31,1973.............
4,007
4,001
Feb. 28, 1973.............
M ar. 31, 1973.............
1,701
Apr.
6 to July 6, 1972,
4,001
s trip ...........................
4,002
4,002
3,026
4,002
3,902 Treasury notes
A pr. 1, 1972........ l f t
1,701
1,601
M ay 15, 1972.........4 y4
M ay 15, 1972........ 6%
1,600
Aug. 15, 1972........ 5
1,601
Oct.
I. 1972........ l f t
1,603
Nov. 15, 1972.........6
1,703
Feb. 15, 1973.........6 ft
1,600
1,600
Feb. 15, 1973.........4%
1,801
A pr. 1, 1973.........l f t
1,803
M ay 15, 1973.........7y4
3,496

Issue and coupon rate

Treasury notes—Cont.
Aug. 15, 1 9 7 3 .... 8 H
1, 1 9 7 3 .... A f t
Oct.
Feb. 15, 1 9 7 4 .... .7 Va
Apr. 1, 1 9 7 4 .... • 1f t
May 15, 1 9 7 4 .... . 71/4
Aug. 15, 1 9 7 4 .... .5%
Oct.
1, 1 9 7 4 .... A f t
Nov. 15, 1 9 7 4 .... •5*4
Feb. 15, 1 9 7 5 .... .5V4
Feb. 15, 1 9 7 5 .... • 5%
Apr. 1, 1 9 7 5 .... A f t
M ay 15, 1 9 7 5 .... 6
2,860
Aug. 15, 1 9 7 5 .... .5%
1, 1 9 7 5 .... A f t
Oct.
Nov. 15, 1 9 7 5 .... 7
Feb. 15, 1 9 7 6 .... . 6 V4
Apr. 1, 1 9 7 6 ....
34
May 15, 1 9 7 6 .... • 544
3,676
M ay 15, 1 9 7 6 .... b ft
1,377
Aug. 15, 1 9 7 6 .... 7V?
2,574
1, 1 9 7 6 .... \ f t
Oct.
33
Nov. 15, 1 9 7 6 .... 61/4
2,285
Feb. 15, 1 9 7 7 .... X
2,514
Aug. 15, 1 9 7 7 .... m
4,268
Feb. 15, 1 9 7 8 .... 61/4
34
Nov. 15, 1 9 7 8 .... 6
5,844
1,800
1,801
1,801
1,805
1,702
1,700
1,701
1,701
1,200
1,200
1,201

f Tax-anticipation series.

Am ount

Issue and coupon rate

Treasury bonds
June 15, 1967-72. .2 f t
1,839
30
Sept. 15, 1967-72. . 2 ft
Dec. 15, 1967-72. . 2 f t
2,960
34
Aug. 15, 1 9 7 2 .... 4
4,334
Aug. 15, 1 9 7 3 .... 4
10,284
Nov. 15, 1 9 7 3 .... •4M,
42
Feb. 15, 1 9 7 4 .... A f t
7,212
M ay 15, 1 9 7 4 .... . 41/4
5,148
Nov. 15, 1 9 7 4 .... .3%
2,045
M ay 15, 1975-85. A V a
June 15, 1978-83. . 31/4
8
6,760
Feb. 15, 1 9 8 0 .... .4
7,679
Nov. 15, 1 9 8 0 .... .3 f t
30
Aug. 15, 1 9 8 1 .... .7
3,115
Feb. 15, 1 9 8 2 .... •6V*
3,739
M ay 15, 1 9 8 5 .... . 31/4
27
Nov. 15, 1 9 8 6 .... •61/r
2,804
Aug. 15, 1987-92. .4 i/4
2,697
Feb. 15, 1988-93. .4
4,194
M ay 15, 1989-94. A f t
9
Feb. 15, 1 9 9 0 .... .314
1,283
Feb. 15, 1 9 9 5 .... 3
5,163
Nov. 15, 1 9 9 8 .... •3 ft
2,264
8,389 Convertible t>onds
8,207
Investment Series B
Apr. 1, 1975-80. 2 y4

A m ount

1,227
1,951
2,550
1,453
3,894
4,340
2,468
2,854
2,237
1,209
1,521
2,585
1,901
807
2,197
1,025
1,216
3,787
244
1,536
4,449
1,053
3,571

2,314

N o t e . —D irect public issues only. Based on D aily Statement o f U.S.
Treasury.

NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions o f dollars)
All issues (new capital and refunding)
Type o f issue

Type o f issuer

Period
Total

1964.
1965.
1966.
1967.
1968.
1969.
1970.
1971.

Gener­
al
obli­
gations

Reve­
nue

10,847
11,329
11,405
14,766
16,596
11,881
18,164
24,962

6,417
7,177
6,804
8,985
9,269
7,725
11,850
15,220

3,585
3,517
3,955
5,013
6,517
3,556
6,082
8,681

1971— F e b ...
Mar. .
A p r...
M ay ..
J u n e ..
July. .
Aug. .
S e p t..
Oct.. .
N o v ..
D ec...

1,851
2,258
1,891
2,167
2,013
1,989
1,903
2,098
1,728
2,264
2,068

1,225
1,309
1,305
1,091
1,320
1,306
1,141
1,313
836
1,394
1,367

619
949
581
869
684
506
754
523
890
869
440

1972—J a n ...
F eb ...

1,762
1,953

1,116
1,021

644
928

U.S.
H A A 1 Govt.
loans

637
464
325
477
528
402
131
1,000

197
171
258
253

Issues for new capital

State

Special
district
and
O ther2
stat.
auth.

208
170
312
334
282
197
103
62

1,628
2,401
2,590
2,842
2,774
3,359
4,174
5,999

3,812
3,784
4,110
4,810
5,946
3,596
5,595
8,714

7
1
5
10
8
5
9
3
3
1
8

585
447
430
486
779
477
459
348
341
629
441

627
660
510
1,095
337
606
735
706
840
874
568

639
1,152
952
585
896
905
707
1,044
548
761
1,058

2
4

639
354

543
173

578
1,425

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 o f delivery to purchaser
and payment to issuer, which occurs after date o f sale.
4 W ater, sewer, and other utilities.




Total
amount
deliv­
ered3

Use o f proceeds

Total

5,407 10,069 10,201
5,144 11,538 10,471
4,695
11,303
7,115
14,643
7,884
16,489
4,926
11,838
8,399
18,110
10,246
24,495

Edu­
cation

Roads
and
bridges

U til­
ities4

Other
H ous­ Veter­
ans’ pur­
in g 5
aid
poses

3,392
3,619
3,738
4,473
4,820
3,252
5,062
5,278

688
900
1,476
1,254
1,526
1,432
1,532
2,642

2,437
1,965
1,880
2,404
2,833
1,734
3,525
5,214

727
626
533
645
787
543
466
2,068

120 2,838
50 3,311
3,667
5,867
6,523
4,884
7,526
9,293

1,835
2,244
1,841
2,159
2,004
1,942
1.894
2,053
1,626
2,134
2,042

520
570
491
625
385
301
352
463
291
418
353

133
183
66
448
394
120
158
65
210
338
137

315
702
471
433
699
231
377
458
353
500
239

123
28
19
222
14
219
159
271
96
246
298

743
762
795
430
512
1,071
846
796
678
631
1,016

1,690
1.895

383
521

146
78

437
426

56
29

668
843

5 Includes urban redevelopment loans.
N o t e . —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 treatm ent o f U.S. Govt. loans.
Investment Bankers Assn. d ata; par am ounts o f long-term issues
based on date o f sale unless otherwise indicated.
Components may not add to totals due to rounding.

A 48

SECURITY ISSUES □ APRIL 1972
TO TAL NEW ISSUES
(In millions o f dollars)
Gross proceeds, all issues1
N oncorporate

C orporate

Period
Total

U.S.
G o v t.2

U.S.
Govt,
agency3

State
and local
(U .S.)4

Bonds
Other5

Stock

Total
Total

Publicly
offered

Privately
placed

Preferred

Common

1964......................
1965......................
1966......................

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

2,679
1,547
1,939

1967......................
1968......................
1969......................
1970.......................
1971.......................

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
U ,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

1,959
3,946
7,714
7,240
9,291

J a n ............
F eb............
M ar..........
A pr...........
M ay..........
June..........
Ju ly ...........
A ug...........
Sept...........
O ct............
N ov...........
Dec............

7,438
6,522
11,069
7,244
6,969
10,994
9,316
9,346
9,445
8,353
9,040
7,651

436
431
517
467
466
2,779
1,153
3,228
1,698
412
2,414
402

1,050
1,224
1,300
700
1,000
1,812
2,049
1,500
1,774
2,169
750
924

2,614
1,823
2,104
1,859
2,114
1,988
1,951
1,850
2,044
1,882
1,684
2,245

223
44
1,073
177
118
40
17
237
161
113
10
100

3,115
3,000
6,075
4,042
3,271
4,375
4,147
2,532
3,768
3,777
4,182
3,980

2,627
2,476
4,782
2,623
2,638
3,042
1,951
1,844
2,573
2,694
3,283
3,270

2,033
2,201
4,135
2,116
2,148
2,283
1,331
1,428
1,966
2,390
3,000
2,436

594
275
647
507
491
760
619
416
607
304
283
834

76
100
311
537
54
104
1,527
270
165
180
124
168

413
424
982
882
579
1,228
669
418
1,031
903
774
541

1972—J a n ............

7,115

529

1,401

1,737

297

3,151

2,319

1,767

552

303

529

1971

Gross proceeds, major groups of corporate issuers
M anufacturing

Commercial and
miscellaneous

T ransportation

Bonds

Stocks

Bonds

Stocks

Bonds

2,819
4,712
5,861

228
704
1,208

902
1,153
1,166

220
251
257

944
953
1,856

1967................................................... 9,894
1968................................................... 5,668
1969................................................... 4,448
1970................................................... 9,192
1971................................................... 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

N o v .......................................
Dec........................................

647
644
2,123
819
631
1,031
383
262
991
571
637
687

69
17
294
316
158
175
200
212
154
91
174
293

259
72
289
198
143
497
159
76
123
150
61
246

Jan .........................................

307

7.

169

Period

1964...................................................
1965...................................................
1966...................................................

1971

J a n .........................................
Feb........................................
M ar.......................................
A pr........................................
M ay......................................
J u n e ......................................
July.......................................
Sept.......................................

1972




Communication

Real estate
and financial

Bonds

Stocks

Bonds

Stocks

Bonds

Stocks

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

466
514
193

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

186
662
1,671
1,638
2,212

239
112
186
243
131
290
188
175
295
172
232
127

167
89
160
268
250
182
157
76
120
185
145
199

1
1
67
89
115
62
12
29
5
6
33

608
752
895
607
447
616
520
687
578
703
672
520

68
317
557
660
141
439
212
162
492
230
545
371

391
672
481
247
403
204
232
359
235
432
261
311

9
42

555
248
834
484
763
513
500
385
525
624
660
510

112
66
204
107
113
300
144
126
179
224
303
335

138

254

14

416

113

456

294

717

203

1 Gross proceeds are derived by multiplying principal am ounts or
num ber o f units by offering price.
2 Includes guaranteed issues.
3 Issues n o t guaranteed.
4 See n o t e to table at bottom o f preceding page.

Stocks

Public utility

11
52
26
2
14
1,390
46

5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organ­
izations.
N o t e . —Securities and Exchange Commission estimates o f new issues
maturing in more than 1 year sold for cash in the United States.

APRIL 1972 □ SECURITY ISSUES

A 49

NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In millions o f dollars)
D erivation o f change, all issuers1
All securities

Period

Bonds and notes

C om m on and preferred stocks

New issues

Retirements

N et change

New issues

Retirements

N et change

New issues

Retirements

N et change

1967.........................
1968.........................
1969.........................
1970.........................
1971.........................

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
-9 0 0
4,272
6,801
13,452

1970—IV ................

11,936

2,577

9,359

9,034

2,069

6,964

2,902

508

2,394

1971

U ,241
13,212
10,746
11,488

2,015
2,979
1,992
2,521

9,226
10,233
8,754
8,967

8,765
8,974
6,159
8,019

1,776
2,681
1,649
2,084

6,989
6,294
4,510
5,935

2,476
4,238
4,586
3,469

239
299
343
437

2,237
3,939
4,244
3,032

I ...................
I I .................
I l l ................
IV ................

Type o f issuer
M anu­
facturing

Period

Bonds
& notes

Commercial
and other 2

Stocks

Transpor­
tation 3

Public
utility

Communi­
cation

Real estate
and financial 1

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

Bonds
& notes

Stocks

1967.........................
1968.........................
1969.........................
1970.........................
1971.........................

7,237
4,418
3,747
6,641
6,585

832
- 1 ,8 4 2
69
870
2,534

1,104
2,242
1,075
853
827

282
821
1,558
1,778
2,290

1,158
987
946
1,104
900

165
-1 4 9
186
36
800

3,444
3,669
4,464
6,861
6,486

652
892
1,353
2,917
4,206

1,716
1,579
1,834
4,806
3,925

467
120
241
94
1,600

1,302
1,069
1,687
2,564
5,005

-1 3 0
-7 4 1
866
1,107
2,017

1970—IV .................

2,054

374

407

404

428

58

1,777

1,189

1,135

51

1,165

318

1971

2,076
2,296
852
1,361

520
885
676
45.'

201
446
-1 0
190

416
757
678
445

271
461
195
-2 7

33
374
230
163

1,897
1,347
1,493
1,749

948
1,261
814
1,183

1,194
919
832
980

66
38
1,442
54

1,349
825
1,148
1,683

255
624
404
734

I ...................
I I ..................
I l l ................
IV .................

1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
N o t e . —Securities and Exchange Commission estimates o f cash transactions only. As contrasted with data shown on opposite page, new issues

exclude foreign sales and include sales o f securities held by affiliated com­
panies, special offerings to employees, and also new stock issues and cash
proceeds connected with conversions o f 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,

OPEN-END INVESTMENT COMPANIES
(In millions of dollars)

Year

Sales and redem ption
o f own shares
Sales 1 Redemp­
tions

Net
sales

Assets (m arket value
at end o f period)
Total 2

Cash
position 3

O ther

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 o f investment income dividends; excludes reinvestment o f realized capital gains dividends.
2 M arket value at end o f period less current liabilities.




M onth

Sales and redem ption
o f own shares
Sales 1 Redemp­
tions

Assets (m arket value
a t end o f period)

Net
sales

T otal 2

Cash
p o sitio n 3

O ther

1971—Feb.. .
M a r...
A p r...
M a y ..
J u n e ..
Ju ly ...
A u g ...
Sept...
O ct.. . .
N o v ...
D e c...

349
468
547
307
434
371
432
304
596
397
453

322
425
394
428
467
444
394
471
419
334
411

27
43
153
-1 2 1
-3 3
-7 3
38
-1 6 7
177
63
42

51,300
53,618
55,883
53,610
53,560
51,424
53,798
53,291
51,160
50,958
55,045

3,600
3,328
3,046
2,607
2,830
2,856
3,016
2,511
2,885
3,172
3,038

47,700
50,290
52,837
51,003
50,730
48,568
50,782
50,780
48,275
47,786
52,007

1972—J a n ....
F e b ...

521
404

475
514

46
-1 1 0

56,694
58,536

3,163
3,478

53,531
55,058

3 Cash and deposits, receivables, all U.S. G ovt, securities, and other
short-term debt securities, less current liabilities.
N o t e . — Investment Com pany Institute d ata based on reports o f m em­
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. D ata reflect
newly formed companies after their initial offering o f securities

A 50

BUSINESS FINANCE □ APRIL 1972
SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS
(In millions o f dollars)

Industry

1968
1966

1965

1967

1968

19691

1969
I

II

III

IV

I

II

III

IV

M anufacturing
Total (177 corps.):
Sales...................................................
Profits before taxes.........................
Profits after taxes............................
D ividends.........................................
N ondurable goods industries (78
co rp s.):2
Sales..................................................
Profits before tax es.........................
Profits after tax es............................
D ividends.........................................
D urable goods industries (99 co rp s.):3
Sales...................................................
Profits before taxes.........................
Profits after taxes............................
Dividends..........................................
Selected industries:
Foods and kindred products (25
corps.):
Sales...................................................
Profits before taxes.........................
Profits after taxes...........................
Dividends.........................................
Chemical and allied products (20
corps.):
Sales.................................................
Profits before taxes.......................
Profits after taxes.........................
Dividends........................................
Petroleum refining (16 corps.):
Sales................................................
Profits before taxes.......................
Profits after taxes..........................
Dividends.......................................
Primary metals and products (34
corps.):
Sales.................................................
Profits before taxes.......................
Profits after taxes.........................
D ividends........................................
Machinery (24 corps.):
Sales.................................................
Profits before taxes.......................
Profits after taxes..........................
D ividends........................................
Automobiles and equipm ent (14
corps.):
Sales.............................................
Profits before taxes...................
Profits after taxes.....................
D ividends...................................

177,237 195,738 201,399 225,740 243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383
22,046 23,487 20,898 25,375 25,622 5,985 6,878
5,580 6,932 6,565 6,887 5,851
6,319
12,461 13,307 12,664 13,787 14,090 3,298
3,609 3,030 3,850 3,579 3,750 3,244 3,517
6,527 6,920 6,989 7,271
1,716
7,757
1,731
1,746 2,078
1,838
1,916 1,885 2,118
64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626
9,039 9,866 10,333 2,387 2,492 2,545
7,846 9,181
2,442 2,524 2,664 2,641
2,504
5,799 6,103
4,786
5,473 5,379
1,428
1,411
1,471
1,489
1,492 1,559
1,529
1,523
3,082
2,527 2,729 3,027
743
3,289
751
763
825
812
808
820
849
112,341 122,094 123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756
14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041
4,224 3,210 3,815
7,675 7,834 6,352 7,989 7,989
1,871
2,198
1,559 2,361
2,087 2,190
1,715
1,997
3,964 4,189
4,000 4,191
972
981
4,469
983
1,253
1,026
1,108
1,065
1,270

16,427 19,038 20,134 22,109 24,593
1,710
1,916
1,967 2,227 2,425
1,041
1,093
1,171
896 1,008
583
616
661
509
564

5,184
498
255
150

5,389
563
260
155

5,737
590
285
155

5,799
576
293
156

5,714
534
261
162

5,923
581
275
165

6,631
666
314
164

6,325
644
321
170

18,158 20,007 20,561 22,808 24.494
2,891
3,073 2,731
3,117 3,258
1,618
1,630
1,579
1,773
1,737
1,002 1,031
926
948
960

5,436
760
390
236

5,697
807
419
236

5,782
806
412
243

5,893
744
398
287

5,845
844
448
252

6,230
875
473
251

6,236
818
441
254

6,183
721
411
274

17,828 20,887 23,258 24,218 25,586
3,004 2,866 2,941
1,962 2,681
2,206 2,224
1,541
1,898 2,038
1,123
1,039
817 1,079
737

5,890
767
592
253

6,013
692
520
255

6,100
740
561
258

6,214
667
534
273

6,107
726
562
282

6,610
728
558
273

6,264
750
554
282

6,605
737
550
286

26,548 28,558 26,532 30,171 33,674
3,052
2,931
3,277
2,487 2,921
1,912
1,689
1,903
1,506
1,750
818
892
952
987
924

7,150
669
376
224

8,427
915
550
230

7,461
601
343
233

7,133
735
482
264

7,671
691
431
242

8,612
828
504
245

8,448
715
435
247

8,943
818
542
253

25,364 29,512 32,721 35,660 38,719
4,377
3,107
3,612
3,482 4,134
1,626
1,789 2,014
2,147
1,875
992
774
912
921
1,128

8,371
936
448
247

8,864
1,008
499
248

8,907
1,112
537
248

9,517
1,079
531
249

8,957
1,071
526
270

9,757 10,542
1,167
1,141
576
568
271
293

9,463
998
477
294

42,712 43,641 42,306 50,526 52,290
5,268
6,253
5,274
3,906 5,916
3,294
2,877
1,999 2,903 2,604
1,723
1,890
1,642
1,775
1,567

12,343
1,507
783
364

13,545
1,851
847
364

9,872
640
330
364

14,767 13,328 13,638 11,300 14,024
1,918
1,663
652 1,411
1,542
342
943
806
750
706
365
550
436
366
556

Public utility
R ailro ad :
Operating revenue. .
Profits before ta x e s.,
Profits after taxes. ..
D ividends..................
Electric power:
Operating revenue.,
Profits before taxes.
Profits after ta x e s ...
D ividends..................
Telephone:
O perating revenue. .
Profits before taxes.
Profits after taxes. . .
D ividends..................

10 208
979
815
468

10,661
1,094
906
502

10,377 10,859 11,451
683
678
385
565
461
319
515
488
538

2,611
127
112
117

2,758
206
174
132

2,708
149
110
100

2,782
196
169
166

2,741
128
98
116

2,916
220
173
136

2,836
149
98
100

2,958
186
92
136

15,816
4,213
2,586
1,838

16,959
4,414
2,749
1,938

17,954 19,421 21,075
4,547 4,789 4,938
3,186
2,908
3,002
2,299
2,066 2,201

5,106
1,351
863
539

4,553
1,040
641
555

4,869
1,271
764
543

4,892
1,125
733
565

5,480
1,384
873
580

4,913
1,065
707
577

5,370
1,366
827
561

5,312
1,123
779
581

11,320
3,185
1,718
1,153

12,420
3,537
1,903
1,248

13,311
3,694
1,997
1,363

16,057
4,098
2,080
1,493

3,486
971
525
351

3,544
989
441
318

3,629
990
493
396

3,771
1,001
502
363

3,853
1,070
540
368

3,975
1,043
523
371

4,044
979
497
373

4,185
1,006
520
381

14,430
3,951
1,961
1,428

^Manufacturing figures reflect changes by a number o f companies in
accounting methods and other reporting procedures.
2 Includes 17 corporations in groups not shown separately.
3 Includes 27 corporations in groups not shown separately.
N o te .— Manufacturing corporations: D ata are obtained primarily from
published reports o f companies.
Railroad: Interstate Commerce Commission data for Class I linehaul railroads.
Electric power: Federal Power Commission data for Class A and B
electric utilities, except th at quarterly figures on operating revenue and




profits before taxes are partly estimated by the Federal Reserve to include
affiliated nonelectric operations.
Telephone: D ata obtained from Federal Communications Commis­
sion on revenues and profits for telephone operations o f the Bell System
Consolidated (including the 20 operating subsidiaries and the Long
Lines and General Depts. o f A merican Telephone and Telegraph Co.)
and for two affiliated telephone companies. Dividends are for the 20
operating subsidiaries and the two affiliates.
A ll series: Profits before taxes are income after all charges and before
Federal income taxes and dividends.
Back data available from the Division o f Research and Statistics.

Series have been temporarily discontinued.

APRIL 1972 □ BUSINESS FINANCE

A 51

CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions o f dollars)

Profits
before
taxes

In ­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

Corporate
capital
consump­
tion
allow­
ances1

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 ^

87.6
84.2
75.4
85.5

39.9
39.7
34.1
37.8

47.8
44.5
41.2
47.6

23.6
24.4
25.0
25.5

24.2
20.0
16.2
22.1

46.8
51.3
56.2
61.9

1 Includes depreciation, capital outlays charged to current accounts, and
accidental damages.

Quarter

Profits
before
taxes

In­
come
taxes

Profits
after
taxes

Cash
divi­
dends

Undis­
tributed
profits

C orporate
capital
consump­
tion
allow­
ances 1

1970—1 . . . .
I I ...
I I I ...
I V ...

75.6
75.8
78.5
71.6

34.1
34.5
35.6
32.3

41.5
41.3
42.9
39.2

25.0
24.9
25.2
25.0

16.6
16.4
17.7
14.3

54.4
55.7
56.7
58.0

1971—1 . . . .
II . . .
I I I . ..
IV *..

83.0
86.9
85.8
86.2

38.3
39.1
37.5
36.4

44.8
47.8
48.2
49.8

25.6
25.4
25.7
25.3

19.2
22.4
22.5
24.5

59.4
61.0
62.7
64.4

N o t e . —D ept, o f Commerce estimates.
adjusted annual rates.

Quarterly data are at seasonally

CURRENT ASSETS AND LIABILITIES OF CORPORATIONS
(In billions o f dollars)
C urrent assets
Net
working
capital

End o f period

Total

Cash

U.S.
Govt.
securi­
ties

Current liabilities

N otes and accts.
receivable

N otes and accts.
payable
Inven­
tories

U.S.
G o v t.1

Other

Other

U.S.
G o v t.1

Other

Accrued
Federal
income
taxes

Total

Other

1966.................................
1967.................................
1968.................................
1969................................

188.2
198.9
212.0
213.2

442.6
470.4
513.8
555.9

49.3
54.1
58.0
54.9

15.4
12.7
14.2
12.7

4.5
5.1
5.1
4.8

205.2
216.0
237.1
261.0

143.1
153.4
165.8
184.8

25.1
29.0
33.6
37.8

254.4
271.4
301.8
342.7

4 .4
5.8
6 .4
7 .3

179.0
190.6
209.8
238.1

18.3
14.1
16.4
16.6

52.8
60.8
69.1
80.6

1970—1...........................
I I .........................
I l l .......................
I V .......................

213.3
213.6
214.0
217.0

561.0
566.3
567.6
572.1

52.9
52.5
53.7
56.9

12.5
10.7
9.3
9 .7

4.7
4 .4
4 .2
4 .2

264.5
268.7
270.0
268.1

188.0
190.2
191.8
194.4

38.5
39.9
38.5
38.8

347.7
352.7
353.6
355.2

7 .2
7 .0
6.8
6.6

238.4
244.1
243.0
244.5

18.0
14.6
15.4
15.9

84.2
87.1
88.3
88.1

1971

220.4
226.3
231.3
235.7
231.2
235.6

576.9
582.6
591.9
601.8
592.2
601.9

55.8
58.6
59.8
63.0
59.8
63.0

10.1
10.3
10.6
13.0
10.6
13.0

4 .2
3.9
3.9
3.5
4 .3
3.8

269.8
273.2
276.9
277.9
276.8
278.0

196.8
197.4
199.5
201.3
200.6
202.0

40.1
39.3
41.2
43.0
40.2
42.0

356.5
356.3
360.6
366.1
361.0
366.3

6.1
5.3
5.2
4.9
3.6
3.5

240.3
241.2
242.2
247.4
241.9
247.4

18.6
16.8
18.7
19.5
18.7
19.5

91.4
93.0
94.7
94.4
96.8
95.9

I ...........................
I I .........................
I l l .......................
I V .......................
►I l l .......................
►I V ........................

► Change in series (in manufacturing sector), to be consistent with the
N o t e . —Securities and Exchange Commission estim ates; excludes
change in the FTC Quarterly Financial R eport series.
banks, savings and loan assns., insurance companies, and investment
1 Receivables from, and payables to, the U.S. Govt, exclude amounts companies.
offset against each other on corporations’ books.

BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT
(In billions o f dollars)
M anufacturing
Period

Total
Durable

N on­
durable

Public utilities

Transportation
Mining

Commu­
nications
Gas
and other

O th e r1

Rail­
road

Air

Other

Electric

1.64
1.48
1.59
1.68
1.23
1 38
1 55

5.38
6.75
7.66
8.94
10.65
12.86
14 58

2.05
2.00
2.54
2.67
2.49
2.44

6.02
6.34
6.83
8.30
10.10
10.77
12.30

14.48
14.59
15.14
16.05
16.59
18.05
19 51

Total
(S. A.
A.R.)

1966..........................
1967..........................
1968..........................
1969..........................
1970.........................
1971.........................
1972 2 .....................

63.51
65.47
67.76
75.56
79.71
81.21
89.77

14.06
14.06
14.12
15.96
15.80
14.15
16.11

14.14
14.45
14.25
15.72
16.15
15.84
16 50

1.62
1.65
1.63
1.86
1.89
2.16
2 20

2.37
1.86
1.45
1.86
1.78
1.67
1 75

1.74
2.29
2.56
2.51
3.03
1.88
2 42

1970—IV .................

21.66

4.26

4 .4 0

.50

.43

.76

.33

3.12

.63

2.81

4.42

78.63

1971—1....................
I I ...................
I l l .................
IV .................

17.68
20.60
20.14
22.79

3.11
3.52
3.40
4.12

3.58
4.03
3.91
4.32

.49
.54
.55
.59

.34
.47
.42
.45

.34
.60
.39
.56

.28
.36
.37
.37

2.70
3.20
3.35
3.60

.41
.63
.71
.69

2.50
2.81
2.62
2.84

3.94
4.44
4.42
5.26

79.32
81.61
80.75
83.18

1972—1 2 ................
II 2...............

19.56
22.49

3.43
4.01

3.60
4.15

.53
.54

.45
.42

.52
.78

.35
.35

3.15
3.60

.45
.72

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.




7. 08
7.92

87.54
89.09

N o t e . —D ept, o f 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.

A 52

REAL ESTATE CREDIT □ APRIL 1972
MORTGAGE DEBT OUTSTANDING
(In billions of dollars)
All properties

Farm

N onfarm

O ther
holders2
period

1- to 4-family houses4

All
cial
hold­
insti­
ers
U.S.
tutions1 agen­
cies

Indi­
viduals
and
others

Finan­
All
Other
cial
hold­
hold­
insti­
ers
tutions 1 e rs 3

All
hold­
ers
Total

Finan. Other
hold­
insti­
tutions1 ers

M ultifamily and
commercial properties5

Total

Mortgage
type6

A—
Finan. Other FH
VAhold­
insti­
under­
tutions1 ers
written

C on­
ven­
tional

1941...........
1945...........

37.6
35.5

20.7
21.0

4 .7
2 .4

12.2
12.1

6 .4
4 .8

1.5
1.3

4.9
3.4

31.2
30.8

18.4
18.6

11.2
12.2

7.2
6 .4

12.9
12.2

8.1
7.4

4.8
4.7

3.0
4.3

28.2
26.5

1964...........
1965...........
1966...........
1967...........
1968...........

300.1
325.8
347.4
370.2
397.5

241.0
264.6
280.8
298.8
319.9

11.4
12.4
15.8
18.4
21.7

47.7
48.7
50.9
53.0
55.8

18.9
21.2
23.3
25.5
27.5

7 .0
7.8
8 .4
9.1
9 .7

11.9
13.4
14.9
16.3
17.8

281.2
304.6
324.1
344.8
370.0

197.6
212.9
223.6
236.1
251.2

170.3
184.3
192.1
201.8
213.1

27.3
28.7
31.5
34.2
38.1

83.6
91.6
100.5
108.7
118.7

63.7
72.5
80.2
87.9
97.1

19.9
19.1
20.3
20.9
21.6

77.2
81.2
84.1
88.2
93.4

204.0
223.4
240.0
256.6
276.6

1969—I . . ..
II. ..
I I I ..
IV ..

403.7
411.7
418.7
425.3

324.7
331.0
335.7
339.1

22.6
2 3 .4
24.9
26.8

56.4
57.1
58.1
59.4

28.1
28.8
29.2
29.5

9.8
10.1
10.1
9 .9

18.3
18.7
19.1
19.6

375.7
382.9
389.5
395.9

254.8
259.5
263.4
266.8

216.0
219.9
222.5
223.6

38.8
39.5
40.9
43.2

120.9
123.4
126.0
129.0

98.9
101.0
103.1
105.5

21.9
22.4
22.9
23.5

94.5
96.6
98.5
100.2

281.2
286.2
291.0
295.7

1970—1 . . . .
1 1 ...
111..
IV ..

429.4
435.6
443.4
451.7

340.7
344.5
349.7
355.9

28.6
30.0
31.7
33.0

60.1
61.1
61.9
62.8

29.8
30.3
30.8
31.2

9 .8
9.8
10.0
10.1

20.0
20.5
20.8
21.1

399.6
405.2
412.5
420.5

268.5
271.7
276.0
280.2

223.8
225.7
228.5
231.4

44.7
46.0
47.5
48.8

r 131.1
133.5
136.5
140.3

107.1
109.1
111.4
114.6

23.9
24.5
25.1
25.7

101.9
103.2
106.8
109.2

297.6
302.0
305.7
311.3

1971—I . . . .
I I . ..

459.0
471.1

361.8
372.0

33.6
35.2

63.6
63.9

31.8
31.9

10.1
9 .7

21.7
22.2

427.2
439.3

283.6
290.8

234.5
240.7

49.4
49.5

143.6
148.5

117.5
121.9

26.1
26.6

111.0
114.4

316.2
324.9

1 Commercial banks (including nondeposit trust companies but not
trust depts.), mutual savings banks, lifd insurance companies, and savings
and loan assns.
2 U.S. agencies include former FN M A and, beginning fourth quarter
1968, new G N M A as well as FH A , VA, PH A , Farmers Home Admin.,
and in earlier years, R FC , HOLC, and FFM C . They also include
U.S. sponsored agencies— new FN M A , Federal land banks, G N M A
(Pools), and the FHLHC. Other U.S. agencies (amounts small or sep­
arate 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.
4 For multifamily and total residential properties, see p. A-54.

5 Derived figures; includes small am ounts o f farm loans held by savings
and loan assns.
6 D ata by type o f mortgage on nonfarm 1- to 4-family properties alone
are shown on p. A-54.
N o t e . — Based on data from Federal D eposit Insurance Corp., Federal
Home Loan Bank Board, Institute o f Life Insurance, Depts. o f Agricul­
ture and Commerce, Federal N ational M ortgage Assn., Federal Housing
Admin., Public Housing Admin., Veterans Admin., G overnment National
M ortgage Assoc., Federal Home Loan M ortgage Corp., and Comptroller
of the Currency.
Figures for first three quarters o f each year are F.R. estimates.

MORTGAGE LOANS HELD BY BANKS
(In millions of dollars)
M utual savings bank holdings 2

Commercial bank holdings 1
Residential
End o f period
Total
Total

FHAin­
sured

Total

FH A in­
sured

4,812
4,208

3,884
3,387

2,742
2,688
2,599
2,696
2,708

18,876 12,405
21,997 14,377
24,733 16,366
27,237 17,931
30,800 20,505

2,638
2,911
3,138
3,446
3,758

40,556
44,617
47,337
50,490
53,456

36,487
40,096
42,242
44,641
46,748

12,287
13,791
14,500
15,074
15,569

7,768
7,926

2,657
2,708

29,826 19,771
30,800 20,505

3.757
3.758

52,496
53,456

46,051
46,748

42,302
43,532
44,331
44,573

7,953
8,060
8,065
7,960

2,711
2,743
2,793
2,663

31,638
32,729
33,470
33,950

20,950
21,459
21,924
22,113

3,894
4,088
4,081
4,019

54,178
54,844
55,359
56,138

47,305
47,818
48,189
48,682

70,854
71,291
72,393
73,275

44,568
44,845
45,318
45,640

7,888
7,800
7,885
7,919

2,496
2,575
2,583
2,589

34,184
34,469
34,850
35,131

22,248
22,392
22,825
23,284

4,038
4,054
4,250
4,351

74,424
76,639

46,343
48,163

7,971
8,146

2,595
2,636

35,777 23,595
37,381 24,477

4,486
3,999

4
5
6
7
8

43,976
49,675
54,380
59,019
65,696

28,933
32,387
34,876
37,642
41,433

7,315
7,702
7,544
7,709
7,926

1968— III.
IV .,

63,779
65,696

40,251
41,433

1969— 1 . ..
II. .
III.
IV ..

67,146
69,079
70,336
70,705

1970—1 . ..
II. .
III.
IV ..
1971—1 . ..
II . .

1 Includes loans held by nondeposit trust companies, but not bank
trust depts.
2 D ata for 1941 and 1945, except for totals, are special F.R. estimates.
N o t e . —Second and fourth quarters, Federal D eposit Insurance C orpo­
ration series for all commercial and mutual savings banks in the United




Total

566
521

3,292
3,395

196
196
196
196
196

C on­
ven­
tional

Farm

1,048
856

4,906
4,772

1941..........
1945..........

VAguar­
anteed

Residential

O ther
non­
farm

VAguar­
anteed

Con­
ven­
tional

Other
non­
farm

Farm

900
797

28
24

11,121 13,079
11,408 14,897
11,471 16,272
11,795 17,772
12,033 19,146

4,016
4,469
5,041
5,732
6,592

53
52
53
117
117

15,367
15,569

11,945
12,033

18,739
19,146

6,329
6,592

116
117

15,678
15,769
15,813
15,862

12,097
12,151
12,169
12,166

19,530
19,898
20,207
20,654

6,756
6,908
7,053
7,342

117
117
117
114

56,394
56,880
57,402
57,948

48,874 15,865
49,260 15,931
49,628 16,017
49,937 16,087

12,105
12,092
12,127
12,008

20,904
21,237
21,654
21,842

7,413
7,519
7,671
7,893

107
101
103
119

58,680
59,643

50,553 16,157 12,010 22,386
51,362 16,281 12,011 23,069

8,014
8,174

113
107

States and possessions. First and third quarters, estimates based on special
F.R. interpolations after 1963 or beginning 1964. For earlier years, the
basis for first- and third-quarter estimates included F.R. commercial bank
call report data and data from the N ational Assn. o f M utual Savings
Banks.

APRIL 1972 □ REAL ESTATE CREDIT

A 53

MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES
(In millions of dollars)
Loans acquired

Loans outstanding (end o f period)

N onfarm

N onfarm

Period
Total
Total

FH A insured

VAguar­
anteed

Farm

Total

Other 1

Total

FH A insured

Farm

VAguar­
anteed

O ther

1945...................................................

976

6,637

5,860

1,394

4,466

766

1963...................................................
1964...................................................
1965...................................................
1966...................................................

9,172
10,433
11,137
10,217

8,306
9,386
9,988
9,223

1,598
1,812
1,738
1,300

678
674
553
467

6,030
6,900
7,697
7,456

866
1,047
1,149
994

50,544
55,152
60,013
64,609

46,752
50,848
55,190
59,369

10,756
11,484
12,068
12,351

6,401
6,403
6,286
6,201

29,595
32,961
36,836
40,817

3,792
4,304
4,823
5,240

1967...................................................
1968...................................................
1969...................................................
1970...................................................

8,470
7,925
7,531
7,127

7,633
7,153
6,943
6,763

757
755
663
401

444
346
220
82

6,432
6,052
6,108
6,280

837
722
537
314

67,516
69,973
72,027
74,345

61,947
64,172
66,254
68,693

12,161
12,469
12,271
11,325

6,122
5,954
5,701
5,390

43,664
45,749
48,282
51,978

5,569
5,801
5,773
5,652

1971

Jan .........................................
Feb........................................
M ar.......................................
A pr........................................
M a y ......................................
J u n e ......................................
Ju ly .......................................
Aug........................................
Sept.......................................
O ct.........................................
N ov.......................................
D ec........................................

448
449
623
578
491
537
590
735
672
607
607
1,346

451
425
579
533
442
494
551
684
636
568
565
1,285

17
17
33
18
24
29
20
23
73
28
20
18

7
5
5
8
8
9
8
8
10
11
9
10

399
407
541
507
410
456
523
601
515
487
492
1,252

25
24
44
45
49
42
39
51
36
39
42
61

74,370
74,437
74,516
74,536
74,552
74,535
74,583
74,707
74,799
74,864
74,903
75,596

68,779
68,871
68,973
68,993
68,425
68,973
69,017
69,121
69,209
69,270
69,302
69,995

11,383
11,338
11,302
11,237
11,186
11,123
11,048
10,975
10,950
10,884
10,843
10,760

5,368
5,346
5,316
5,284
5,254
5,219
5,180
5,142
5,104
5,071
5,047
5,001

52,028
52,187
52,355
52,472
51,985
52,631
52,789
52,438
52,590
52,749
52,854
53,660

5,591
5,566
5,543
5,543
5,554
5,562
5,566
5,586
5,590
5,594
5,596
5,601

1972—Jan .........................................

503

475

37

16

393

28

81,056

75,517

10,722

4,986

53,704

5,539

1 Includes mortgage loans secured by land on which oil drilling or
extracting operations are in process.
N o t e . — Institute o f Life Insurance data. F o r loans acquired, the
monthly figures may n o t add to annual totals; and for loans outstanding

the end-of-Dec. figures may differ from end-of-year figures because (I)
monthly figures represent book value o f ledger assets, whereas year-end
figures represent annual statem ent asset values, and (2) data for year-end
adjustments are more complete. Beginning 1970 monthly and year-earlier
data are on a statem ent balance basis.

FEDERAL HOME LOAN BANKS

MORTGAGE ACTIVITY OF SAVINGS AND
LOAN ASSOCIATIONS

(In millions o f dollars)

(In millions o f dollars)
Advan ces outsl anding
(en d o f peri od)

Loans outstanding (end o f period)

Loans made

Period
New
home
con­
struc­
tion

Period

Home
pur­
chase

T o tal 2

FH A - VAguar­
in­
sured anteed

C on­
ven­
tional

1945.

1,913

181

1963.
1964.
1965.
1966.

25,173
24,913
24,192
16,924

7,185
6,638
6,013
3,653

10,055 90,944 4,696
10,538 101,333 4,894
10,830 110,306 5,145
7,828 114,427 5,269

6,960
6,683
6,398
6,157

79,288
89,756
98,763
103,001

1967.
1968.
1969.
1970.

20,122
21,983
21,847
21,387

4,243 9,604 121,805 5,791
4,916 11,215 130,802 6,658
4,757 11,254 140,347 7,917
4,150 10,239 150,562 10,195

6,351
7,012
7,658
8,507

109,663
117,132
124,772
131,860
133,089
134,320
135,886
137,563
139,587
141,575
143,456
145,102
146,454
147,944
149,739

1,358

5,376

1971- -F eb ..
M ar..
A pr..
M ay.
Ju n e.
J u ly ..
Aug..
Sept..
O c t..
N ov..
D e c ..

1,887
2,795
3,168
3,438
4,301
4,151
4,111
3,672
3,405
3,298
3,592

346
521
597
620
718
686
641
628
609
589
573

818 152,665 10,810
1,143 154,430 12,123
1,306 156.574 11,560
1,451 158,747 11,885
2,109 161,440 12,273
2,087 163,951 12,592
2,225 166,342 12,852
1,951 168,464 13,130
1,717 170,106 13,278
1,661 172,047 13,521
1,590 174,385 13,798

8,766
8,922
9,128
9,299
9,580
9,784
10,034
10,232
10,374
10,582
10,848

1972—J a n .r.
F eb ..

2,632
2,834

481
514

1,253
1,400

11,013 150,849
11,240 152,192

175,838 13,976
177.575 14,143

1 Includes loans fo r repairs, additions and alterations, refinancing, etc.
not shown separately.
2 Beginning with 1958, includes shares pledged against mortgage loans;
beginning with 1966, includes junior liens and real estate sold on contract;
and beginning with 1967, includes downward structural adjustment for
change in universe.
N ote .—Federal Home Loan Bank Board data.




A d­
vances

Repay­
ments
Total

Members
deposits
(end of
Short­ Long­ period)
term 1 term 2

1945,

278

213

195

176

19

46

1964.
1% V
1966,

5,565
5,007
3,804

5,025
4,335
2,866

5,325
5,997
6,935

2,846
3,074
5,006

2,479
2,923
1,929

1,199
1,043
1,036

1967.
196K
1969
1970
1971.

1,527
2,734
5,531
3,256
2,714

4,076 4,386
1 ,861
5,259
1,500 9,289
1,929 10,615
5,392 7,936

3,985
4,867
8,434
3,081
3,002

401
392
855
7,534
4,934

1,432
1,382
1,041
2,331
1,789

27
71
151
238
309
358
327
306
364
490

428
1,492
1,151
264
213
183
203
303
296
262

9,926
8,269
7,267
7,241
7,338
7,514
7,637
7,640
7,709
7,936

2,697
2,226
2,322
2,397
2,544
2,812
2,844
2,874
2,829
3,002

7,230
6,043
4,945
4,844
4,794
4,702
4,793
4,766
4,880
4,934

3,093
2,828
2,376
2,111
1,696
1,528
1,522
1,450
1,549
1,789

186
148

885
871

7,238
6,515

2,569
2,342

4,669
4,173

1,948
2,014

1971-- F e b ..............

Ju ly .............
Sept.............

1972Feb..............

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.
N o te .—

Federal Home Loan Bank Board data.

A 54

REAL ESTATE CREDIT □ APRIL 1972
MORTGAGE DEBT OUTSTANDING
ON RESIDENTIAL PROPERTIES

MORTGAGE DEBT OUTSTANDING ON
NONFARM 1- to 4-FAMILY PROPERTIES
(In billions o f dollars)

(In billions o f dollars)

G overnmen tu nderwritte n

All residential

M ultifam ily1

Finan­
cial
insti­
tutions

Other
holders

Total

Finan­
cial
insti­
tutions

O ther
holders

24.2
24.3
211.2
231.1

14.9
15.7
176.7
195.4

9 .4
8 .6
34.5
35.7

5.9
5.7
29.0
33.6

3 .6
3 .5
20.7
25.1

2 .2
2 .2
8.3
8.5

1965................ 250.1
1966................. 264.0
1967p............... 280.0
1968p.............. 298.6

213.2
223.7
236.6
250.8

36.9
40.3
43.4
47.8

37.2
40.3
43.9
47.3

29.0
31.5
34.7
37.7

8 .2
8.8
9 .2
9 .6

1969—I I I ___
IV ........

314.1
319.0

262.7
265.0

51.4
54 .0

50.6
52.2

40.2
41.3

1970—1...........
I I .........
I l l ___
IV ........

321.7
326.3
332.2
338.2

265.9
268.9
272.8
277.2

55.8
57.4
59.4
61.0

53.2
54.5
56.1
58.0

1971—1...........
II

343.3
353.1

281.6
290.1

61.7
63.0

59.7
62.3

End o f
period
Total

1941.................
1945.................
1963................
1964................

End of period

Total
Total

FH A in­
sured

VAguar­
anteed 1

Con­
ven­
tional

1954..................................
1963..................................
1964..................................

18.6
182.2
197.6

4.3
65.9
69.2

4.1
35.0
38.3

.2
30.9
30.9

14.3
116.3
128.3

1965..................................
1966..................................
1967*................................
1968*................................

212.9
223.6
236.1
251.2

73.1
76.1
79.9
84.4

42.0
44.8
47.4
50.6

31.1
31.3
32.5
33.8

139.8
147.6
156.1
166.8

10.4
10.9

1969—1.............................
I I ...........................
I l l ..........................
IV ..........................

254.8
259.5
263.5
266.8

85.3
87.1
88.8
90.2

51.4
52.2
53.4
54.5

33.9
34.9
35.5
35.7

169.6
172.3
174.6
176.6

42.9
4 3 .2
44.3
45.8

10.3
11.3
11.8
12.2

1970—1 ............................
I I ...........................
I l l ..........................
IV ..........................

268.5
271.7
276.0
280.2

91.6
92.2
95.1
97.3

55.6
56.1
58.1
59.9

36.0
36.0
37.0
37.3

176.9
179.6
181.0
182.9

47.2
4 9 .4

12.5
12.9

1971

283.6
290.9

98.2
100.4

61.0
62.8

37.3
37.6

185.3
190.5

i Structures o f five o r more units.
N o t e . — Based

on d ata from same source as for “ M ortgage D ebt O ut­
standing” table (second preceding page).

I ..............................
I I ............................

i
Includes outstanding am ount o f VA vendee accounts held by private
investors under repurchase agreement.
N o t e . — 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.

DELINQUENCY RATES ON HOME MORTGAGES

GOVERNMENT-UNDERWRITTEN RESIDENTIAL
LOANS MADE

(Per 100 mortgages held or serviced)

(In millions o f dollars)
FHA-insured

L oans not in foreclosure
but delinquent for—

V A -guaranteed

Loans in
fore­
closure

End o f period
Total

30 days

60 days

90 days
or more

1963.................
1964.................

3.30
3.21

2.32
2.35

.60
.55

.38
.31

.34
.38

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

1967—1...........
I I .........
I l l ___
IV ___

3.04
2.85
3.15
3.47

2.17
2.14
2.36
2.66

.56
.45
.52
.54

.31
.26
.27
.27

.38
.34
.31
.32

1968—1...........
I I .........
I l l ___
I V ___

2.84
2.89
2.93
3.17

2.11
2.23
2.23
2.43

.49
.44
.48
.51

.24
.22
.22
.23

.32
.28
.26
.26

1969—1...........
I I .........
I I I ....
I V ___

2.77
2.68
2.91
3.22

2.04
2.06
2.18
2.43

.49
.41
.47
.52

.24
.21
.26
.27

.26
.25
.25
.27

1970—1...........
I I .........
I l l ___
IV ........

2.96
2.83
3.10
3.64

2.14
2.10
2.26
2.67

.52
.45
.53
.61

.30
.28
.31
.36

.31
.31
.25
.33

1971—1...........
I I ..........

3.21
3.27

2.26
2.36

.56
.53

.39
.38

.40
.38

M ortgages

Period

1945 .............
1964.............

M ortgages
P rop­
Pro­
erty
Total New
Ex­ jects * im­
Ex­
Total 3 New
isting
prove­
isting
homes homes
homes homes
m ents2
665
8,130

1965 ............. 8,689
1966............. 7,320
1967............. 7,150
1968 ............. 8,275
1969............. 9,129
1970............. 11,981
1970— D ec..

257
217
1,608 4,965
1,705
1,729
1,369
1,572
1,551
2,667

20
895

171
663

192
2,846

1,023

1,821

5,760
591
4,366
583
642
4,516
4,924 1,123
5,570 1,316
5,447 3,250

634
641
623
656
693
617

2,652
2,600
3,405
3,774
4,072
3,442

876
980
1,143
1,430
1,493
1,311

1,774
1,618
2,259
2,343
2,579
2,131

1,351

280

472

549

50

316

109

207

1971—J a n ...
999
F e b ..
951
M a r.. 1,097
A p r .. 1,136
M ay . 1,203
J u n e . 1,372
Ju ly .. 1,34C
A ug.. 1,393
Sept.. 1,242
Oct. . 1,202
Nov.. 1,220
D ec.. 1,598

295
284
318
293
290
322
338
407
320
318
358
358

476
450
531
467
504
629
646
710
543
504
511
502

187
185
202
330
354
399
304
216
290
276
273
691

41
32
46
46
55
21
53
60
89
105
77
47

297
256
303
350
417
519
561
577
693

102
90
98
98
111
127
135
146
188

195
166
205
252
306
392
426
431
506

757
685

226
220

526
465

1 M onthly figures do not reflect mortgage amendments included in annual
totals.
2 N ot ordinarily secured by mortgages.
3 Includes a small am ount o f alteration and repair loans, not shown separ­
ately; only such loans in am ounts o f more than $1,000 need be secured.
N o t e . — Federal Housing Admin, and Veterans Admin, data. FHA-insured
loans represent gross am ount o f insurance w ritten; VA-guaranteed loans,
gross am ounts o f loans closed. Figures do not take into account principal
repayments on previously insured o r guaranteed loans. For VA-guaranteed
loans, am ounts by type are derived from data on num ber and average
am ount o f loans closed.




N o t e . —M ortgage Bankers Association o f America data from
reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­
ventional mortgages held by more than 400 respondents, including
mortgage bankers (chiefly), commercial banks, savings banks, and
savings and loan associations.

APRIL 1972 □ REAL ESTATE CREDIT
FEDERAL NATIONAL MORTGAGE
ASSOCIATION ACTIVITY

GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION ACTIVITY

(In millions o f dollars)

(In millions o f dollars)
M ortgage
transactions
(during
period)

M ortgage
holdings
End o f
period

M ortgage
commitments
End of
period

Out
stand­
ing

860
1,089
827
621

1,045
867
615
897

1,171
1,266
1,130
738

196
196
196
197

7
8
9
0

35
38
56
39
40
43
25

27
21
100
120
171
424
487

705
682
707
786
906
1,247
1,586

Total

VAguar­
anteed

Pur­
chases

1967.
1968.
1969.
1970.

3,348
4,220
4,820
5,184

2,756
3,569
4,220
4,634

592
651
600
550

1971-J a n ...
F eb ..
M ar..
A p r..
M ay.
Ju n e.
J u ly ..
A ug..
Sept..
Oct. .
N ov..
D e c ..

5,188
5,213
5,241
5.244
5,261
5,275
5,282
5,279
5.259
5.245
5.260
5,294

4,641
4,670
4,703
4,710
4,731
4,751
4,761

546
543
538
534
530
524
520

4,749

510

1972-Jan...
F eb ..

5,287

Sales

M ortgage
transactions
(during
period)

M ortgage
holdings

Made
during
period

FH A in­
sured

A 55

FH A in­
sured

VAguar­
anteed

Pur­
chases

5,522
7,167
10,950
15,502

4,048 1,474
5,121 2,046
7,680 3,270
11,071 4,431

1,400
1,944
4,121
5,078

1971-Jan...
F eb ..
M ar..
A p r..
M ay.
June.
J u ly ..
Aug..
Sept..
Oct. .
N ov..
D e c ..

15,520
15,448
15,420
15,308
15,242
15,363
15,674
16,304
16,732
17,202
17,535
17,791

11,092
11,061
11,012
10,933
10,893
10,970
11,184
11,662

75
60
76
58
91
239
407
659
635

1972-Jan...
F eb..

17,977
18,220

Total

24
32

N o t e . — G overnm ent N ational M ortgage Assn. data. D ata prior to
Sept. 1968 relate to Special Assistance and M anagement and Liquidating
portfolios o f former FN M A and include m ortgages subject to participation
pool o f Governm ent M ortgage Liquidation Trust, but exclude conven­
tional m ortgage loans acquired by form er F N M A from the R FC M ortgage
Co., the Defense Homes Corp., the Public Housing Admin., and Com ­
munity Facilities Admin.

4,428
4,391
4,408
4,375
4,349
4,393
4,490
4,642

M ortgage
commitments

Made
during
period

Out
stand­
ing

12

1,736
2,697
6,630
8,047

501
1,287
3,539
5,203

4
72
46
105
92
10

406
350

139
80
33
457
871
1,294
576
1,219
572
655
893
1,014

5,092
4,865
4.380
4.381
4,926
5,750
5,709
5,146
5,327
5,208
5,466
5,694

281
324

574
578

5,558
5,696

N o t e . — Federal N ational M ortgage Assn. data. T otal holdings include
conventional loans. D ata prior to Sept. 1968 relate to secondary m arket
portfolio o f former FN M A . M ortgage commitments made during the
period include some multifamily and nonprofit hospital loan com m it­
ments in addition to 1- to 4-family loan commitments accepted in FN M A ’s
free m arket auction system, and through the FN M A -G N M A Tandem
Plan (Program 18).

FEDERAL NATIONAL MORTGAGE ASSOCIATION
AUCTIONS

HOME-MORTGAGE YIELDS
(In per cent)
Prim ary m arket
(conventional loans)
F H A series
Period

FH LBB series
(effective rate)
New
homes

Existing
homes

1968.........................
1969.........................
1970.........................
1971.........................

6.97
7.81
8.44
7.6 0

7.03
7.82
8.35
7.54

7.12
7.99
8.52
7.75

7.21
8.26
9.05
7.70

1971

Feb..............
M ar..............
A pr..............
M ay.............
Ju n e.............
Ju ly .............
Aug..............
Sept..............
Oct...............
N ov..............
D ec..............

7.91
7.66
7.49
7.47
7.50
7.66
7.74
7.83
7.84
7.79
rl .11

7.80
7.60
7.47
7.45
7.50
7.63
7.71
7.76
7.75
r7 .69
r7.64

7.75
7.60
7.55
7.65
7.70
7.80
7.85
7.85
7.80
7.75
7.70

7.32
7.37
7.75
7.89
7.97
7.92
7.84
7.75
7.62
7.59

1972—Jan ...............
Feb..............

r7.78
7.60

r7 .58
7.49

7.60
7.60

7.49
7.46

data are averages o f monthly figures. The
FH A data are based on opinion reports submitted by field offices
on prevailing local conditions as o f the first o f the succeeding
month. Yields on FH A -insured mortgages are derived from
weighted averages o f private secondary m arket prices for Sec.
203, 30-year mortgages with minimum downpayment and an
assumed prepayment at the end o f 15 years. Gaps in data are
due to periods o f adjustm ent to changes in maximum permis­
sible contract interest rates. The FH A series on average contract
interest rates on conventional first mortgages in prim ary 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 firstmortgage terms, p. A-37) and an assumed prepayment at end
o f 10 years.




Mortgage
amounts

In millions of
dollars
1971

1972

Conventional hom e loans

Average
M ortgage
Average
yield
yield
amounts
(short­
(short­
term
term
com m it­
commit­
Offered Accepted ments) Offered Accepted ments)

D ate o f auction
Yield
on FH A insured
new
home
loans

New
homes

N o t e . — A nnual

G overnment-underwritten
hom e loans

Secondary
m arket

In
per cent

In millions of
dollars

In
per cent

437.5

193.0

7.89

18

365.1
. . 219.8

194.8
103.6

7.89
7.85

15
29

...
...

126.0
145.2
210.6

56.4
102.0
101.1

7.79
7.71
7.67

27

...

232.5
222.7

70.2
148.1

7.63
7.63

Jan.

10
24

....
...

136.9
103.6

72.9
54.9

7.62
7.61

Feb.

7 ............
22............

88.7
68.6

63.9
44.8

7.61
7.61

62.4
21.1

34.9
11.5

7.74
7.64

Mar.

6 ............
20
___

86.9
202.9

50.6
86.2

7.56
7.54

10.1

5.5

7.64
7.61

Sept. 2 0 ..........

N o t e . —Average secondary m arket yields are gross—before deduction o f 38
basis-point fee paid for mortgage servicing. They reflect the average accepted bid
yield for home mortgages assuming a prepayment period o f 12 years for 30-year
loans, without special adjustm ent for FN M A commitment fees and FN M A stock
purchase and holding requirements. Beginning Oct. 18, 1971, the maturity on new
short-term commitments was extended from 3 to 4 months. M ortgage amounts
offered by bidders are total eligible bids received.

A 56

CONSUMER CREDIT □ APRIL 1972
TO TAL CREDIT
(In millions o f dollars)
Instalm ent

End o f period

Total
Total

A uto­
mobile
paper

Other
consumer
goods
paper

N oninstalment
Repair
and m od­
ernization
loans *

Personal
loans

Total

Single­
payment
loans

Charge
accounts

Service
credit

1939............................................
1941............................................
1945............................................

7,222
9,172
5,665

4,503
6,085
2,462

1,497
2,458
455

1,620
1,929
816

298
376
182

1,088
1,322
1,009

2,719
3,087
3,203

787
845
746

1,414
1,645
1,612

518
597
845

1950............................................
1955............................................
1960............................................

21,471
38,830
56,141

14,703
28,906
42,968

6,074
13,460
17,658

4,799
7,641
11,545

1,016
1,693
3,148

2,814
6,112
10,617

6,768
9,924
13,173

1,821
3,002
4,507

3,367
4,795
5,329

1,580
2,127
3,337

1965............................................
1966............................................
1967............................................
1968............................................
1969............................................
1970............................................
1971............................................

90,314
97,543
102,132
113,191
122,469
126,802
137,237

71,324
77,539
80,926
89,890
98,169
101,161
109,545

28,619
30,556
30,724
34,130
36,602
35,490
38,310

18,565
20,978
22,395
24,899
27,609
29,949
32,447

3,728
3,818
3,789
3,925
4,040
4,110
4,356

20,412
22,187
24,018
26,936
29,918
31,612
34,432

18,990
20,004
21,206
23,301
24,300
25,641
27,692

7,671
7,972
8,428
9,138
9,096
9,484
10,300

6,430
6,686
6,968
7,755
8,234
8,850
9,818

4,889
5,346
5,810
6,408
6,970
7,307
7,574

1971—Feb.................................. 123,815
M ar................................. 123,604
A pr.................................. 125,047
M ay ................................ 126,025
J u n e ................................ 127,388
July................................. 128,354
A ug................................. 129,704
Sept................................. 130,644
Oct................................... 131,606
N ov................................. 133,263
Dec.................................. 137,237

99,244
99,168
100,028
100,692
101,862
102,848
104,060
104,973
105,763
107,097
109,545

34,869
35,028
35,496
35,819
36,349
36,763
37,154
37,383
37,759
38,164
38,310

28,928
28,591
28,682
28,706
28,976
29,165
29,477
29,840
30,072
30,586
32,447

4,051
4,045
4,077
4,126
4,186
4,240
4,295
4,330
4,357
4,370
4,356

31,396
31,504
31,773
32,041
32,351
32,680
33,134
33,420
33,575
33,977
34,432

24,571
24,436
25,019
25,333
25,526
25,506
25,644
25,671
25,843
26,166
27,692

9,506
9,557
9,676
9,765
9,862
9,854
9,997
10,061
10,097
10,182
10,300

7,353
7,207
7,689
8,004
8,214
8,271
8,305
8,305
8,435
8,634
9,818

7,712
7,672
7,654
7,564
7,450
7,381
7,342
7,305
7,311
7,350
7,574

1972

108,826
108,634

38,111
38,239

32,096
31,615

4,319
4,332

34,300
34,448

27,004
26,619

10,324
10,433

8,929
8,141

7,751
8,045

Jan ...................................
Feb..................................

135,830
135,253

1 Holdings o f financial institutions; holdings o f retail outlets are ineluded in “ other consumer goods paper.”
N o t e . —Consumer

hold, family, and other personal expenditures, except real estate mortgage
loans. For back figures and description o f the data, see “ Consumer Credit,”
Section 16 ( N e w ) o f Supplement to Banking and, M onetary Statistics, 1965,
and pp. 983-1003 o f the B u l l e t i n for Dec. 1968.

credit estimates cover loans to individuals for house-

INSTALMENT CREDIT
(In millions o f dollars)
Financial institutions
End o f period

Total

Retail outlets

Total

Com­
mercial
banks

Finance
cos. 1

Credit
unions

Mis­
cellaneous
lenders 1

Total

A uto­
mobile
dealers 2

Other
retail
outlets

1939.
1941.
1945.

4,503
6,085
2,462

3,065
4,480
1,776

1,079
1,726
745

1,836
2,541
910

132
198
102

18
15
19

1,438
1,605
686

123
188
28

1,315
1,417
658

1950.
1955
1960,

14,703
28,906
42,968

11,805
24,398
36,673

5,798
10,601
16,672

5,315
11,838
15,435

590
1,678
3,923

102
281
643

2,898
4,508
6,295

287
487
359

2,611
4,021
5,936

1965,
1966.
1967
1968,
1969.
1970.
1971.

71,324
77,539
80,926
89,890
98,169
101,161
109,545

61,533
66,724
69,490
77,457
84,982
87,064
94,086

28,962
31,319
32,700
36,952
40,305
41,895
45,976

24,282
26,091
26,734
29,098
31,734
31,123
32,140

7,324
8,255
8,972
10,178
11,594
12,500
14,191

965
1,059
1,084
1,229
1,349
1,546
1,779

9,791
10,815
11,436
12,433
13,187
14,097
15,459

315
277
285
320
336
327
360

9,476
10,538
11,151
12,113
12,851
13,770
15,099

1971--F eb ........................................................

99,244
99,168
100,028
100,692
101,862
102,848
104,060
104,973
105,763
107,097
109,545

85,910
86,015
86,805
87,491
88,544
89,458
90,536
91,279
91,943
92,901
94,086

41,446
41,563
42,094
42,482
43,011
43,509
44,112
44,603
44,947
45,396
45,976

30,511
30,326
30,369
30,441
30,609
30,906
31,098
31,133
31,331
31,643
32,140

12,351
12,509
12,686
12,874
13,206
13,296
13,570
13,780
13,875
14,052
14,191

1,602
1,617
1,656
1,694
1,718
1,747
1,756
1,763
1,790
1,810
1,779

13,334
13,153
13,223
13,201
13,318
13,390
13,524
13,694
13,820
14,196
15,459

323
325
330
334
339
344
347
349
354
359
360

13,011
12,828
12,893
12,867
12,979
13,046
13,177
13,345
13,466
13,837
15,099

108,826
108,634

93,668
93,955

45,878
45,963

31,948
31,979

14,062
14,126

1,780
1,887

15,158
14,679

359
360

14,799
14,319

M ay.......................................................
June.......................................................
Ju ly .......................................................

1972-- J a n .........................................................
Feb........................................................

1 Finance companies consist o f those institutions formerly classified
as sales finance, consumer finance, and other finance companies. Miscellaneous lenders include savings and loan associations and m utual
savings banks.




2 Automobile paper only; other instalment credit held by automobile
dealers is included with “ other retail outlets.”
See also N o t e to table above,

APRIL 1972 □ CONSUMER CREDIT

A 57

INSTALMENT CREDIT HELD BY FINANCE
COMPANIES

INSTALMENT CREDIT HELD BY COMMERCIAL BANKS
(In millions o f dollars)

(In millions o f dollars)
Autor nobile
pa per
End o f
period

Total

P ur­
chased

D irect

Other
con­
sum er
goods
paper

R epair
and
modern­
ization
loans

Per­
sonal
loans

End o f period

Total

A uto­
mobile
paper

O ther
con­
sumer
goods
paper

Repair
and
m odern­
ization
loans

Per­
sonal
loans

1939.
1941.
1945

1,079
1,726
745

237
447
66

178
338
143

166
309
114

135
161
110

363
471
312

1939..................................
1941..................................
1945..................................

1,836
2,541
910

932
1,438
202

134
194
40

151
204
62

619
705
606

1950,
1955,
1960

5,798
10,601
16,672

1,177
3,243
5,316

1,294
2,062
2,820

1,456
2,042
2,759

834
1,338
2,200

1,037
1,916
3,577

1950..................................
1955..................................
1960..................................

5,315
11,838
15,435

3,157
7,108
7,703

692
1,448
2,553

80
42
173

1,386
3,240
5,006

1965
1966
1967,
1968.
1969,
1970
1971

28,962
31,319
32,700
36,952
40,305
41,895
45,976

10,209
11,024
10,927
12,213
12,784
12,433
13,003

5,659
5,956
6,267
7,105
7,620
7,587
8,752

4,166
4,681
5,126
6,060
7,415
8,633
9,805

2,571
2,647
2,629
2,719
2,751
2,760
2,864

6,357
7,011
7,751
8,855
9,735
10,482
11,552

1965..................................
1966..................................
1967..................................
1968..................................
1969..................................
1970..................................
1971...................................

24,282
26,091
26,734
29,098
31,734
31,123
32,140

9,400
9,889
9,538
10,279
11,053
9,941
10,279

4,425
5,171
5,479
5,999
6,514
6,648
6,521

224
191
154
113
106
94
107

10,233
10,840
11,563
12,707
14,061
14,440
15,233

1971-- F e b ....
M ar.. . .
A p r.. . .
M a y ...
J u n e ...
J u ly ...
Aug. ..
S ep t.. .
O c t.. . .
N o v ...
D ec__

41,446
41,563
42,094
42,482
43,011
43,509
44,112
44,603
44,947
45,396
45,976

12,165
12,147
12,268
12,361
12,484
12,614
12,753
12,831
12,932
13,015
13,003

7,561
7,667
7,825
7,942
8,098
8,220
8,318
8,380
8,509
8,680
8,752

8,535
8,499
8,595
8,676
8,821
8,931
9,074
9,235
9,301
9,412
9,805

2,704
2,692
2,702
2,729
2,765
2,803
2,838
2,860
2,874
2,875
2,864

10,481
10,558
10,704
10,774
10,843
10,941
11,129
11,297
11,331
11,414
11,552

1971—Feb........................
M a y ......................
June.......................
Ju ly .......................
Aug........................

30,511
30,326
30,369
30,441
30,609
30,906
31,098
31,133
31,331
31,643
32,140

9,672
9,674
9,781
9,810
9,918
10,037
10,077
10,077
10,177
10,248
10,279

6,493
6,363
6,280
6,236
6,224
6,230
6,249
6,268
6,306
6,325
6,521

93
93
98
100
101
101
103
104
105
106
107

14,253
14,196
14,210
14,295
14,366
14,538
14,669
14,684
14,743
14,964
15,233

197?,-- J a n .. . .
F e b ....

45,878
45,963

12,957
13,007

8,734
8,763

9,783
9,769

2,835
2,824

11,569
11,600

1972—Jan.........................
Feb........................

31,948
31,979

10,197
10,207

6,501
6,508

108
107

15,142
15,157

S e e N o t e t o firs t ta b le o n p r e c e d in g p a g e .

N o t e . — Finance companies consist o f those institutions formerly clas­
sified as sales finance, consumer finance, and other finance companies.

INSTALMENT CREDIT HELD BY OTHER
FINANCIAL LENDERS

NONINSTALMENT CREDIT
(In millions o f dollars)

(In millions o f dollars)

End o f period

Total

A uto­
mobile
paper

Other
con­
sumer
goods
paper

Repair
and
modern­
ization
loans

Per­
sonal
loans

Single­
payment
loans
End o f period

Charge accounts

Total
Com ­
mer­
cial
banks

Other
finan­
cial
insti­
tutions

Retail
outlets

Credit
c ard s1

Service
credit

1939...................................
1941..................................
1945...................................

150
213
121

27
47
16

5
9
4

12
11
10

106
146
91

1950...................................
1955...................................
1960..................................

692
1,959
4,566

159
560
1,460

40
130
297

102
313
775

391
956
2,034

1939.................
1941.................
1945.................

2,719
3,087
3,203

625
693
674

162
152
72

1,414
1,645
1,612

1965..................................
1966..................................
1967..................................
1968..................................
1969...................................
1970...................................
1971...................................

8,289
9,314
10,056
11,407
12,943
14,046
15,970

3,036
3,410
3,707
4,213
4,809
5,202
5,916

498
588
639
727
829
898
1,022

933
980
1,006
1,093
1,183
1,256
1,385

3,822
4,336
4,704
5,374
6,122
6,690
7,647

1950................
1955................
1960................

6,768
9,924
13,173

1,576
2,635
3,884

245
367
623

3,291
4,579
4,893

76
216
436

1,580
2,127
3,337

1971

13,953
14,126
14,342
14,568
14,924
15,043
15,326
15,543
15,665
15,862
15,970

5,148
5,215
5,292
5,372
5,510
5,548
5,659
5,746
5,787
5,862
5,916

889
901
914
927
952
958
977
992
999
1,012
1,022

1,254
1,260
1,277
1,297
1,320
1,336
1,354
1,366
1,378
1,389
1,385

6,662
6,750
6,859
6,972
7,142
7,201
7,336
7,439
7,501
7,599
7,647

196
196
196
196
196
197
197

18,990
20.004
21,206
23,301
24,300
25,641
27.692

6,690
6,946
7,340
7,975
7,900
8.205
8.916

981
1,026
1,088
1,163
1,196
1,279
1.384

5,724
5,812
5,939
6,450
6,650
6,932
7.597

706
874
1,029
1,305
1,584
1.918

4,889
5,346
5,810
6,408
6,970
7,307
7.574

24,571
24,436
25,019
25,333
25,526
25,506
25,644
25,671
25,843
26,166
27.692

8.205
8,249
8,350
8,425
8,512
8,498
8,633
8,694
8,722
8,795
8.916

1,301
1,308
1,326
1,340
1,350
1,356
1,364
1,367
1,375
1.387
1.384

5,435
5,316
5,774
6,046
6,199
6,173
6,269
6,482
7.597

1972—J a n . . .. 27.004
F e b .... 26,619

8,937
9,008

1.387
1,425

6,719
6,008

Feb........................
M ar.......................
A pr........................
M ay ......................
June.......................
July .......................
Aug.......................
Sept.......................
O ct.........................
N ov.......................
D ec........................

1972—Jan .........................
Feb........................

15,842
16,013

5,864
5,902

1,013
1,019

1,376
1,401

7,589
7,691

N o t e . —O ther financial lenders consist o f credit unions and miscel­
laneous lenders.




5
6
7
8
9
0
1

1971— F e b ....
M ar.. . .
A p r.. ..
M a y ...
Ju n e ...
J u ly ...
Aug. ..
S ept.. .
O ct___
N o v .. .
D ec.. ..

6 ,1 2 0
6,101

518
597
845

2,221

1.918
1,891
1,915
1,958
2,015
2,098
2,185
2,204
2,166
2,152
2,221
2,210

2,133

7,712
7,672
7,654
7,564
7,450
7,381
7,342
7,305
7,311
7,350
7.574
7,751
8,045

1 Service station and miscellaneous credit-card accounts and homeheating-oil accounts. Bank credit card accounts outstanding are included
in estimates o f instalment credit outstanding.
See also N o t e to first table on preceding page.

A 58

CONSUMER CREDIT □ APRIL 1972
INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT
(In millions o f dollars)

Total

Automobile paper

Other consumer
goods paper

Period
S.A .i

N.S.A.

S.A .i

N.S.A.

S.A .i

N.S.A.

R epair and
modernization loans
S.A .i

N.S.A.

Personal loans
S.A.1

N.S.A.

Extensions
27,227
27,341
26,667
31,424
32,354
29,831
34,638

78,586
82,335
84,693
97,053

1965.
1966.
1967.
1968.
1969.
1970.
1971 .

102,888

104,130
117,638

22,750
25,591
26,952
30,593
33,079
36,781
40,979

1971— Feb..
M ar..
A p r..
M ay.
June.
J u ly ..
A ug..
Sept..
O c t..
N o v ..
D e c..

9,081
9,533
9,751
9,690
9,715
9,675
10,049
10,156
10,031
10,572
10,130

7,489
9,575
10,079
9,562
10,667
10,098
10,300
9,849
9,797
10,711
11,966

2,687
2,897
2,872
2,756
2,838
2,773
3,004
3,147
2,992
3,162
2,973

2,336
3,074
3,100
2,883
3,301
3,032
3,066
2,927
3,037
3,105
2,780

3,204
3,210
3,415
3,295
3,433
3,399
3,465
3,462
3,467
3,595
3,604

2,431
3,076
3,363
3,148
3,538
3,415
3,465
3,454
3,423
3,737
5,061

1972—Jan..
Feb.

10,184
10,339

8,766
8,902

2,978
3,046

2,470
2,762

3,706
3,698

3,297
2,926

26,343
27,203
28,961
32,768
35,177
35,373
39,471

2,266
2,20 0

2,113
2,268
2,278
2,145
2,550
197
209
205
200

224
218
222

227
229
214
217
221

243

155
197
219
235
263
248
253
237
225
215
181

2,993
3,217
3,259
3,439
3,220
3,285
3,358
3,320
3,343
3,601
3,336

2,567
3,228
3,397
3,296
3,565
3,403
3,516
3,231
3,112
3,654
3,944

156

3,279
3,352

2,843
3,012

202

Repayments
23,543
25,404
26,499
28,018
29,882
30 943
31,818

69,957
76,120
81,306
88,089
94,609
101 138
109,254

1965.
1966.
1967.............................
1968.............................
1969.............................
) ............................
1970.
1971 .

20,518
23,178
25,535
28,089
30,369
34,441
38,481

2,116
2 110
2 142
2,132
2,163
2 075
2,304

23
25
27
29
32
33
36

780
428
130
850
195
679
651

Feb..................................
M ar.................................
A pr..................................
M ay ................................
J u n e ................................
July.................................
A ug.................................
Sept.................................
O ct...................................
N ov.................................
D ec..................................

8,979
9,038
9,088
9,197
9,190
8,914
9,222
9,157
9,107
9,306
9,230

8,346
9,651
9,219
8,898
9,497
9,112
9,088
8,936
9,007
9,377
9,518

2,636
2,696
2,566
2,640
2,678
2,565
2,697
2,732
2,634
2,662
2,696

2,471
2,915
2,632
2,560
2,771
2,618
2,675
2,698
2,661
2,700
2,634

3,212
3,164
3,249
3,211
3,233
3,203
3,262
3,172
3,219
3,254
3,188

3,078
3,413
3,272
3,124
3,268
3,226
3,153
3,091
3,191
3,223
3,200

188
196
184
188
192
188
196
199
197
199
198

171
203
187
186
203
194
198
202
198
202
195

2,943
2,982
3,089
3,158
3,087
2,958
3,067
3,054
3,057
3,191
3,148

2,626
3,120
3,128
3,028
3,255
3,074
3,062
2,945
2,957
3,252
3,489

Jan...................................
Feb..................................

9,547
9,373

9,485
9,094

2,761
2,693

2,669
2,634

3,501
3,408

3,648
3,407

201
200

193
189

3,084
3,072

2,975
2,864

N et change in credit outstanding 2
3,684
1,937
168
3,406
2,472
-1 ,1 1 2
2,820

8,629
6,215
3,387
8,964
8,279
2,992
8,384

1965.
1966.
1967.
1968.
1969.
1970.
1971 .
1971—Feb..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
O c t..
N ov..
D ec..

102
495
663
493
525
761
827
999
924
1,266
900

-8 5 7
-7 6
860
664
1,170
986
1,212
913
790
1,334
2,448

1972—Jan..
Feb..

637
966

-7 1 9
-1 9 2

306
116
160
208
307
415
358
500
277

51

-1 3 5
159
468
323
530
414
391
229
376
405
146

217
353

-1 9 9
128

201

1 Includes adjustm ents fo r differences in trading days.
2 N et changes in credit outstanding are equal to extensions less
repaym ents.
N o t e . — E stim ates are based on accounting records and often
include financing charges. Renewals and refinancing of loans,




2,232
2,413
1,417
2,504
2,710
2,340
2,498

150
90
-2 9
136
115
70
246
9
13
21

196
203
290
248
341
416

-6 4 7
-3 3 7
91
24
270
189
312
363
232
514
1,861

205
290

-3 5 1
-4 8 1

20

46
166
84
200

12

32
30
26
28
32
15
19
43

2,563
1,775
1,831
2,918
2,982
1,694
2,820

-1 6
-6
32
49
60
54
55
35
27
13
-1 4

50
235
170
281
133
327
291
266
286
410
188

-5 9
108
269
268
310
329
454
286
155
402
455

-3 7
13

195
280

-1 3 2
148

purchases and sales of instalm ent paper, and certain o ther transac­
tions m ay increase the am ount of extensions and repaym ents
w ithout affecting the am ount outstanding.
F o r back figures and description of the d ata, see “ Consum er
C redit,” Section 16 (N ew ) of Supplem ent to Banking and M onetary
Statistics, 1965, and pp. 983-1003 of the B u l l e t i n fo r D ec. 1968.

APRIL 1972 □ CONSUMER CREDIT

A 59

INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER
(In millions o f dollars)

Total

Commercial banks

Finance companies

S.A .1

S .A .1

O ther financial
lenders

Retail outlets

Period
S.A .1

N.S.A.

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............................................

78,586
82,335
84,693
97.053
102,888.
104,130
117,638

29,528
30,073
30,850
36,332
38,533
39,136
45,099

25,192
25,406
25,496
28,836
30,854
29,662
32,036

9,436
10 362
10,911
12,850
14,245
14 619
17,312

14
16
17
19
19
20
23

430
494
436
035
256
713
191

1971— Feb..................................
M ar.................................
A pr..................................
M ay................................
Ju n e ................................
July.................................
Aug.................................
Sept.................................
O ct..................................
N ov.................................
D ec..................................

9,081
9,533
9,751
9,690
9,715
9,675
10,049
10,156
10,031
10,572
10,130

7,489
9,575
10,079
9,562
10,667
10,098
10,300
9,849
9,797
10,711
11,966

3,478
3,646
3,676
3,600
3,806
3,644
3,919
3,989
3,832
4,140
3,939

2,988
3,783
3,948
3,671
4,207
3,917
4,062
3,932
3,752
3,931
4,023

2,513
2,681
2,624
2,798
2,490
2,676
2,699
2,718
2,733
2,853
2,760

2,121
2,686
2,672
2,655
2,832
2,791
2,729
2,549
2,655
3,015
3,370

1,282
1,394
1,475
1,441
1,513
1,423
1,452
1,488
1,490
1,564
1,454

1,117
1,418
1,552
1,493
1,724
1,506
1,582
1,439
1,414
1,535
1,477

1,808
1,812
1,976
1,851
1,906
1,932
1,979
1,961
1,976
2,015
1,977

1,263
1,688
1,907
1,743
1,904
1,884
1,927
1,929
1,976
2,230
3,096

1972—Jan...................................
Feb..................................

10,184
10,339

8,766
8,902

3,826
3,947

3,366
3,539

2,695
2,666

2,247
2,354

1,482
1,602

1,244
1,465

2,181
2,124

1,909
1,544

Repayments
1965.............................................
1966.............................................
1967.............................................
1968.............................................
1969.............................................
1970.............................................
1971.............................................

25,663
27,716
29,469
32,080
35,180
37,961
41,018

69,957
76,120
81,306
88 089
94 609
101,138
109,254

22,551
23,597
24,853
26,472
28,218
29,858
31,019

8,310
9,337
10,169
11,499
12,709
13,516
15,388

13,433
15,470
16,815
18,038
18,502
19,803
21,829

1971—Feb..................................
M ar.................................
A pr..................................
M ay ................................
Ju n e................................
July.................................
A ug.................................
Sept.................................
O ct..................................
N ov.................................
D ec..................................

8,979
9,038
9,088
9,197
9,190
8,914
9,222
9,157
9,107
9,306
9,230

8,346
9,651
9,219
8,898
9,497
9,112
9,088
8,936
9,007
9,377
9,518

3,369
3,387
3,332
3,375
3,541
3,351
3,456
3,460
3,439
3,470
3,451

3,153
3,666
3,417
3,283
3,678
3,419
3,459
3,441
3,408
3,482
3,443

2,656
2,674
2,580
2,698
2,550
2,485
2,590
2,614
2,495
2,579
2,596

2,401
2,871
2,629
2,583
2,664
2,494
2,537
2,514
2,457
2,703
2,873

1,186
1,207
1,315
1,323
1,299
1,293
1,288
1,266
1,319
1,360
1,324

1,070
1,245
1,336
1,267
1,368
1,387
1,299
1,222
1,292
1,338
1,369

1,768
1,770
1,861
1,801
1,800
1,785
1,888
1,817
1,854
1,897
1,859

1,722
1,869
1,837
1,765
1,787
1,812
1,793
1,759
1,850
1,854
1,833

1972—Jan...................................
Feb..................................

..9 ,5 4 7
9,373

9,485
9,094

3,620
3,538

3,464
3,454

2,586
2,463

2,439
2,323

1,346
1.377

1,372
1,294

1,995
1,995

2,210
2,023

N et change in credit outstanding 2
1965.............................................
1966.............................................
1967.............................................
1968.............................................
1969.............................................
1970.............................................
1971.............................................

8,629
6,215
3,387
8,964
8,279
2,992
8,384

3,865
2,357
1,381
4,252
3,353
1 590
4,081

2 641
1,809
643
2,364
2 636
611
1 017

1,126
1,025
742
1,351
1 536
1 103
1 924

997
1,024
621
997
754
910
1,362

1971— Feb..................................
M ar.................................
A pr..................................
M ay ................................
J u n e ................................
July.................................
Aug.................................
Sept.................................
O ct..................................
N ov.................................
Dec..................................

102
495
663
493
525
761
827
999
924
1,266
900

-8 5 7
-7 6
860
664
1,170
986
1,212
913
790
1,334
2,448

109
259
344
225
265
293
463
529
393
670
488

-1 6 5
117
531
388
529
498
603
491
344
449
580

-1 4 3
7
44
100
-6 0
191
109
104
238
274
164

-2 8 0
-1 8 5
43
72
168
297
192
35
198
312
497

96
187
160
118
214
130
164
222
171
204
130

47
173
216
226
356
119
283
217
122
197
108

40
42
115
50
106
147
91
144
122
118
118

-4 5 9
-1 8 1
70
-2 2
117
72
134
170
126
376
1,263

1972—Jan...................................
Feb..................................

637
966

-7 1 9
-1 9 2

206
409

-9 8
85

109
203

-1 9 2
31

136
225

-1 2 8
171

186
129

-3 0 1
-4 7 9

1 Includes adjustments for differences in trading days.
2 N et changes in credit outstanding are equal to extensions less re­
payments, except in certain months when data for extensions and re­
payments have been adjusted to eliminate duplication resulting from
large transfers o f paper. In those months the differences between ex­
tensions 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.
N o t e . —“ Other financial lenders” include credit unions and miscellaneous
lenders. See also N o t e to preceding table and Note 1 at bottom of p . A-56.

A 60

INDUSTRIAL PRODUCTION: S.A. □ APRIL 1972
MARKET GROUPINGS
(1967 = 100)

Grouping

Total index.

1967
p ro ­
p o r­
tion

1971
aver­
age*

100.00 106.4

Products, to ta l..................
Final products...............
Consumer g o o d s.. . .
Equipm ent................
Interm ediate products.
M aterials...........................

1972

1971
Feb.

M ar.

105.7 105.5

62.21 106.2 105.0 104.5
48.95 104.4 103.0 102.5
28.53 115.5 112.9 112.7
20.42 88.9
89.3
88.4
13.26 112.8 112.5 112.0
37.79 106.8 106.8 107.1

Apr.

M ay

June

July

Aug.

Sept.

106.2 107.0 107.2 106.1

105.3 106.2

105.5 105.9 106.1
103.6 103.9 104.5
114.6 115.7 116.1
88.1
87.8 88 .2
112.4 113.5 112.4
107.5 108.9 109.0

106.2
105.0
116.0
89.6
110.7
104.0

106.8
104.9
116.0
89.3
113.8
105.3

Nov.

Dec.

Jan.

Feb.

106.4 107.0 107.6 108.2 108.9

106.2 106.9
104.6 105.3
115.0 116.9
90.2
89.0
112.5 113.0
106.2 105.6

107.6
105.9
118.2
88.8
114.0
106.0

107.5
105.6
117.9
88.5
114.7
107.6

108.1
106.2
118.5
88.7
115.0
108.4

108.5
106.7
119.3
89.1
115.3
109.4

Consumer goods
Durable consumer goods...............
Automotive products................
A utos........................................
A uto parts and allied goods.

7.86 114.3 110.6 111.6 112.2
2.84 119.4 117.8 117.
113.7
1.87 108.3 112.8 112.2 103.2
.97 140.8 127.4 128.6 133.9

117.2 116.1 115.8 115.8 113.6
123.1 121.2 120.1 1 2 1 . 1 118.0
108.3 107.9 107.9 108.5 108.0
151.4 146.8 143.6 145.2 153.4

115.3
119.6
107.8
142.2

Home goods.................................
Appliances, TV, and radios.
Appliances and A /C .........
TV and home audio..........
Carpeting and fu rn itu re .. . .
Misc. home g o o d s.................

5.02
1.41
.92
.49
1.08
2.53

113.9 113.3
120.7 116.9
132.1 129.3
99.4 93.9
111.7 113.6
111.1 1 1 1 . 2

112.9 113.4 114.7 117.0 118.5
110.7 113.4 116.0 123.1 121.9
131.1 135.5 134.5 142.3 145.3
72.6
71.8
81.3 87.1
78.3
115.3 117.3 116.0 117.8 118.4
113.1 111.7 113.4 113.1 116.7

Nondurable consumer goods.............
C lothing...........................................
Consumer staples...........................
C onsumer foods and tobacco.
N onfood staples...........................
Consumer chemical products.
Consumer paper products___
Consumer fuel and lig h tin g ..
Residential utilities..............

111.5 106.5 108.2 111. 4
1 1 1 . 2 102.5 107.9 116.4
127.2 117.6 124.9 126.0
98.6
81.4 74.0 76.1
112.9 110.1 108.3 110.7
111,0 107.5 108.1 109.0

113.5 112.9 111.1
115.0 112.1 105.7
126.0 128.0 121.7
82.4 75.6
94.5
114.8 114.7 116.1
112.0 112.5 1 1 2 . 1

20.67 116.0 113.8 113.1 115.5 115.1 116.1 116.1 116.1
4.32 101.4 97.3 96.9 101.0 102.6 101.9 102.4 100.3
16.34 U 9 .8 118.1 117.4 119.4 118.5 119.9 119.8 120.2
8.37 113.2 112.6 111.8 112.7 113.2 113.5 112.0 112.6
7.98 126.8 123.9
2.64 133.2 131.8
104.6
1.91 107.
3.43 132.4 128.9
2.25 140.1 135.2

115.5 116.4
119.6 119.8
109.2 109.4
139.7 139.6

115.6 117.5 119.3
102.5 103.5 103.6
119.1 121.2 123.5
110.4 113.9 117.2

118.5
104.9
122.1
114.6

116.8 118.2
116.5 117.5
102.8 106.4
143.0 138.4

119.2
105.5
122.9
115.6

119.7
123.5
115.5

124.2
133.2
105.0
128.0
135.1

126.5
130.9
109.9
132.5
140.6

128.0
133.1
106.9
135.9
145.1

128.4 128.2 128.9 130.1 130.0 130.5
133.1 133.5 131.7 136.9 134.0 136.5
106.2 109.2 110.3 111
114.8 115.6
137.2 134.7 137.1 135.2 135.7 134.3
146.2 144.2 147.0 144.5 144.5 141.8

131.8
138.8
116.9
134.6
142.0

94.4
95.1
92.4 90.9
91.2 91.5
82.1
79.5
120.5 120.2

95.0
90.9
88.8
80.1

96.3
91.8
88.9
81.1
122.7

96.8
92.0
96.4
79.9
119.7

97.6
93.5
99.4
80.2
122.5

123.2 126.4
131.6 134.0
103.0 108.2
127.9 130.5
133.2 136.4

Equipment
Business equipment.......................
Industrial equipm ent...............
Building and mining equip.
M anufacturing equipm ent.
Power equipm ent.................
Commercial, transit, farm eq*.
Commercial equipm ent.........
Transit e quipm ent.................
Farm equipm ent.....................
Defense and space equipment.
M ilitary products.................

12.74
6.77
1.45
3.85
1.47

96.0
92.3
92.9
81.4
120.5

96.0 95.0
93.4 92.4
94.3 92.4
82.2 81.3
121.7 121.5

121

101.5
99
107.6 109.9
88.4
90
87.7 99.9

5-97 100.1 99.0 98.0 98.2
3.30 108.4 107.0 106.6 107.1
87.2 87.3
2-00 89.o 89.1
88.0 86.6
•67 92.8

98.4
107.6
87.3

76.5
79.1

76.9
79.5

77.1
80.5

77.7
81.4

113.4 115.5
111.6 111.9

113.5

115.3
112.7

78.1
80.4

77.
79.8

86.6

7.68
5.15

77.1
80.4

5.93
7.34

113.0
112.5

Durable goods materials. . . .
C onsum er durable p arts.
Equipm ent p arts..............
D urable materials n e c ...

20.91
4.75
5.41
10.75

100.8

Nondurable goods materials............
Textile, paper, and chem. m a t..
N ondurable materials n .e.c.....
Fuel and power, industrial...........

13.99 113.8 112.1 112.0 112.7 1 1 2.8 115.5
8.58 116.1 111.7 111.9 113.2 113.7 117.5
5.41 110.3 112.7 112.3 111.9 111.3 112.0
2.89 116.2 118.6 121.1 121.0 119.7 121

97.8
92.4
96.6
80.5
119.5

102.2 103.8
109.9 112.0
90.2 90.2
100.0 103.9
77.9
82.2

77.7
82.3

97.4
92.6
95.5
81.1
119.7

97.0 96.6 97.5
93
92.8 93.1
95.2 94.0 97.7
81.3
81.0 80.3
122.2 122.2 121.9

102.8 101.3 100.
102.6 102.2
111.0 109.1 106.9 108.6 109.6
90.4
6 92.1
94.1
92.0
96.1
99.5 101.1
98.0 96.4
75.1
79.0

75.3
78.7

109.4 111.3 112.7
111 .7 113.4 113.4

112.9
114.9

74.9
78.2

74.1
77.5

74.9
78.1

Intermediate products
Construction products..........
Misc. intermediate products.

111.9 112.6
113.1 111.4

111.6

115.1 115.6 115.1
114.4 114.7 115.4

M aterials
98.7
101.6 101.9 102.2 104.8 103.0
101.4 101.4 103.2 102.8 105.1 104.8 98.8
87.0
86.4
8
6
.0
88.9
87.1
87.6
86.6
110.2 104.6
107.8 108.8 109.2 110.2 112

94.9 98.7 100.4 99.5 100.1 102.5 104.2
100.4 100.7 1 0 1 . 8
99.4 99.2 102.7 105.2
82.1
86.9 86.0 87.6
86.0
88.6 90.0
99.0 104.1 106.6 106.4 106.8 109.5 110.8

112.3 114.8 114.7 114.6 116.0 116.6
113.4 117.
118.8 118.8 121.7 122.9
110.5 109.9 108.2 108.3 107.1 106.7
119.7 117.2 119.3 99.4 105.0 117.6

115.5 115.7
120.5 120.1
107.6 108.6
116.9 117.1

Supplementary groups
Home goods and clothing.
C ontainers.............................

9.34 106.8
1.82 116.7

102.3 102.9
119.6 108.1

106.6 108.7
113.5 117

108.0 108.3
115.5 118.2

107.1 107.1 108.5
117.2 115.0 116

108.9 110.1
119.1 120 .

111.6

118.4

112.5
118.7

Gross value of products
in market structure
(In billions of 1963 dollars)
Products, total...................
Final products.............
Consumer g o o d s.. . .
Equipm ent................
Interm ediate products.

392.0 388.6 385.9 390.2 391.6 392.6 395.2 393.0 392.8 395.3 396.1 394.6 397.6 398.6
302.3 298.5 291A 300.4 301.3 303.2 304.6 305.4 302.9 305.2 305.9 303.4 306.3 307.0
213.6 209.5 209.6 212.6 213.4 214.8 216.4 215.5 212.1 215.7 217.1 215.9 217.1 217.8
87.7 89.2
89.2
89.4 8 8 .8
90.7
87.6 88.5
88.1
90.1
89.2 87.9 87.9
88.8
90.2 91.0 91.4 91.6
87.7 89.7 90.1
89.6 89.9 88.5
89.3 90.2 89.6 90.8

F or N o t e see p. A-63.
* Referred to as “ nonindustrial equipm ent” in the article published in the July 1971




B u lle tin ,

pp. 551-76.

APRIL 1972 □ INDUSTRIAL PRODUCTION: S.A.

A 61

INDUSTRY GROUPINGS
(1967 = 100)

G rouping

Manufacturing..........................................
D u rab le.................................................
N ondurable..........................................
Mining and utilities................................
M ining...................................................

1967
p ro­
p or­
tion

1971
aver­
age^

55.55
52.33
36.22
11.45
6.37
5.08

104.8 103.9 103.2
98.8 98.6 98.3
113.3 111.7 110.4
119.6 119.9 120.2
107.0 110.1 111.4
135.3 132.2 131.5

1972

1971
Feb.

M ar.

Apr.

M ay

June

July

104.4
99.1
112.1
120.6
110.4
133.2

105.7
100.5
113.3
119.0
108.6
132.1

105.6 104.9
100.1
99.4
113.7 113.0
120.7 120.3
108.9 105.7
135.6 138.7

Aug.

Sept.

Oct.

Nov.

Dec.

103.6
96.6
113.8
120.0
106.5
137.0

104.9
98.5
114.2
120.3
106.0
138.4

105.4 105.3 105.4
98.0 98.2
99.1
114.6 115.9 115.9
116.1 118.7 121.4
97.7 102.3 107.8
139.3 139.6 138.3

Jan.

Feb.?

106.5
99.6
116.5
120.5
107.2
137.4

107.4
100.5
117.4
120.5
106.4
138.2

Durable manufactures
Primary and fabricated m etals.............
Primary m etals....................................
Iron and steel, subtotal.................
Fabricated metal pro d u cts...............

12.55 103.9 106.0 105.8 108.6 111.5 108.3 104.2
98.2
6.61 100.9 105.5 106.6 108.7 114.3 108.1
4.23 96.5 104.8 105.2 109.1 112.9 105.3 9 9 .0
5.94 107.3 106.6 104.9 108.5 108.5 108.5 110.8

93.8 99.5
81.0 93.9
66.2 85.9
108.0 105.7

100.9
95.7
88.7
106.9

98.7 100.0 104.1 103.5
91.4 93.6 102.5 100.4
81.9
85.5 95.2 94.6
106.9 107.1 105.8 106.9

Machinery and allied goods...................
M achinery............................................
Nonelectrical m achinery...............
Electrical m achinery......................
Transportation equipm ent...............
M o to r vehicles and p a rts .............
Aerospace and misc. trans. e q . ..
Instrum ents..........................................
Ordnance, private and G ovt............

32.44 94.2 93.5 93.0
94.2 94.0
17.39 95.5
9.17 92.9 92.3 91.1
96.3 97.1
8.22 98.4
92.6 91.3
9.29 91.3
4.56 111.6 113.0 112.2
4.73 71.8 72.9 71.2
2.07 108.5 105.3 105.5
85.7
3.69
87.0 85.5

94.5
95.2
95.6 96.3
94.1
95.0
97.3 97.8
91.1
91.7
111.6 111.8
71.5
72.4
109.1 110.5
90.0 90.2

95.3
97.0
95.3
98.9
92.4
112.9
72.6
111.2
85.6

94.6 94.1 94.7 95.8
96.3 96.6 97.6 98.4
93.3 92.5 93.6 94.5
99.6 101.2 102.1 102.7
91.6 89.8 90.0 91.6
113.4 111.7 111.6 115.0
70.7 68.7
69.3 69.0
110.4 109.3 111 .7 114.3
85.1
83.5
84.2
84.8

92.7 93.8 94.4
94.2 95.3 95.2
91.4 90.9
91.6
97.4 100.2 99.2
91.7
89.5 90.9
108.4 110.2 111.7
71.4 72.3
72.4
106.7 108.0 108.5
85.2
86.0 88.8

94.7
97.4
94.9
100.2
88.5
106.7
71.0
110.9
88.8

Lumber, clay, and glass.........................
Lum ber and p ro d u cts.......................
Clay, glass, and stone p ro d u c ts .. . .

4.44 I I I . 3 109.8 110.8 113.0 112.3 111.0 111.2 110.4 111.1 112.7 113.0 114.3 115.1 117.3
1.65 113.4 110.8 110.3 112.5 110.0 111.0 115.4 113.1 113.9 117.3 117.9 120.7 120.6 121.0
2.79 110.1 109.2 111.1 113.3 113.7 111.1 108.7 108.8 109.4 109.9 110.1 110.5 112.1 115.2

Furniture and miscellaneous..................
Furniture and fixtures.......................
Miscellaneous m anufactures............

2.90 110.1
1.38 98.7
1.52 120.5

107.1 105.6 109.5 109.9 111.3 113.5 111.3 112.0 112.1 111.5
96.0 95.0 98.7 97.6 100.9 99.9 99.6 100.8 100.3 101.6
117.2 115.4 119.3 121.2 120.7 126.1 122.0 122.2 122.6 120.5

Textiles, apparel, and leather...............
Textile mill p ro d u cts.........................
A pparel pro d u cts................................
Leather and p ro d u c ts........................

6 .9 0
2.69
3.33
.88

98.0 97.3 99.8 101.5 102.4 100.2 100.1
105.4 105.3 106.3 107.5 109.1 108.5 110.5
94.5 9 4 .C 97.3 99.7 97.1
97.0
96.0
89.0 85.4 89.9
89.8
89.3
84.1
86.7

Paper and printing..................................
Paper and p ro d u cts............................
Printing and publishing.....................

7.92 107.8 108.1 104.6 106.9 106.9 106.0 106.8 108.2 108.3 109.0 110.6 110.8 112.2 112.3
3.18 116.0 116.C 111.0 114.4 115.1 113.4 115.5 117.8 116.4 116.1 119.5 120.0 122.1 121.2
4.74 102.2 102.8 100.2 101.8 101.4 101.0 101.0 101.7 102.9 104.3 104.5 104.7 105.6 106.3

112.7 112.7 114.8
100.4 100.9 101.9
123.9 123.7 126.4

Nondurable manufactures

Chemicals, petroleum, and rubber___
Chemicals and p ro d u cts...................
Petroleum p ro d u cts............................
R ubber and plastics products..........
Foods and tobacco..................................
Tobacco products...............................

11.92
7.86
1.8C
2.26

100.7
108.5
97.9
87.3

102.5 102.2 101.6 102.8 101.9 103.7
111.0 110.1 110.2 112.0 108.2
99.5 100.0 99.5 99.7 100.0
87.6 87.2
82.9 86.8
89.4 86.1

124.3 120.9 120.5 122.4 124.2 125.3 124.0 126.2 127.3 126.5 127.8 127.8
125.8 121.7 121.0 123.4 123.7 126.8 125.0 127.6 129.7 128.2 130.7 130.3
115.7 117.1 116.3 115.8 112.7 115.0 114.8 115.8 113.7 115.7 116.0 118.3
125.9 120.6 122.7 124.5 127.2 129.1 128.0 129.9 129.6 129.0 127.6 126.6

9.48 113.3 113.1
8.81 114.5 114.1
.67 97.7 100.1

128.5 130.1
130.7 133.2
118.4 118.9
128.6 127.8

112.2 112.9 113.6 113.7 113.8 112.8 111.1 113.2 115.6 114.3 115.7 115.6
113.8 114.1 114.6 115.4 115.2 114.C 111 .9 114.3 117.C 115.8 116.6 116.5
90.3 96.9 100.3 92.1 96.6 98.2 100.3 98.5
98.2 93.8 103.8

Mining
M etal, stone, and earth minerals..........
M etal m ining.......................................
Stone and earth m inerals.................

1.26 104.6 113.6 111.6 106.5 104.6 104.9
.51 121 .A 139.( 135.1 124.7 122.6 117.3
.75 93.2 96.3 95.6 94.2 92.4 96.4

Coal, oil, and g a s....................................
C o al.......................................................
Oil and gas extraction.......................

5.11 107.5
.6S 99.(
4.42 108.9

91.6
93.5
90.2

96.8
104. i
91.4

98.1
109.7
90.1

102.0 110.9 111.1 108.3 105.8
117.1 136.7 137.7 129.1 127.6
91.7
93.4 92.7 94.3
90.9

109.3 111.4 111.4 109.6 109.9 109.2 108.9 108.0
108.1 116.2 115.5 110.2 109.4 109.4 109.4 109.7
109.3 110.6 114.3 109.6 110.0 109.2 108.8 107.7

96.7 100.2 107.0 106.9 106.6
29.1
55.7 112.4 104
99.6
107.3 107.2 106.1 107.2 107.7

Utilities
Electric......................................................

F or N ote see p. A-63.




3.91
1.1'

138.0
126.5

134.9
123.6

133.6
124.:

135.5

133.8

138.3

142.0 139.7

141.5

142.3

142.3

141.9

141.2 142.7

A 62

INDUSTRIAL PRODUCTION: N.S.A. □ APRIL 1972
MARKET GROUPINGS
(1967 = 100)

Grouping

1967
p ro ­
po r­
tion

1971
average1*

Feb.

M ar.

Apr.

M ay

June

106.1

106.0 106.5 107.3 109.7

1972

July

Aug.

Sept.

Oct.

Nov.

102.1

105.5

109.8

109.8

107.2 103.9

Dec.

Jan.

Feb.*

106.1

108.9

62.21 106.2 104.7 104.5 105.0 105.1 109.0 103.9 107.5 111.7 111.2 107.4 102.6 105.1
48.95 104.4 103.4 103.0 102.9 102.7 107.2 101.6 105.6 110.0 109.3 105.6 100.7 104.1
28.53 115.5 113.2 112.9 113.6 113.5 119.3 111.9 118.4 123.1 122.9 117.3 109 9 115.7
20.42 88.9
88.0 87.6 90.4 87.1
87.6 91.8 90.3
89.6 89.1
89.2 87.8
87.8
13.26 112.8 109.5 110.2 112.6 113.8 115.5 112.4 114.5 118.1 118.1 114.1 109.7 108.6
37.79 106.8 108.3 108.4 109.0 110.8 110.9 99.2 102.3 106.8 107.6 107.0 106.0 107.7

107.8
106.7
118.9
89.5
112.1
110.6

Total in d ex .......................................... 100.00 106.4
Products, to ta l.......................................
Final products....................................
Consumer goods.............................
Equipm ent.......................................
Interm ediate p roducts.......................
M aterials................................................

1971

Consumer goods
Durable consumer goods.........................
Automotive products.........................
A utos................................................
Auto parts and allied goods........

7.86 114.3 113.8 114.8 114.7 117.3 120.5 101.9 108.6 121.5 125.7 118.9 106.9 116.4 120.7
2.84 119.4 125.1 125.3 121.9 127.2 130.5 94.9 102.0 128.6 135.8 123.7 102.4 120.6 124.5
1.87 108.3 124.1 123.4 112.5 120.2 120.8 69.4 76.5 112.0 124.0 115.6 87.5 112.0 117.0
.97 140.8 127.0 128.9 139.9 140.8 149.0 144.0 151.0 160.5 158.6 139.4 130.9 137.1 138.7

Home goods..............................................
Appliances, TV, and rad io s.............
Appliances and A /C ......................
TV and home au d io......................
Carpeting and fu rniture....................
Misc. home goods..............................

5.02
1.41
.92
.49
1.08
2.53

111.5 107.4
111.2 108.9
127.2 124.7
81.4 79.3
112.9 114.7
111.0 103.4

108.8 110.7 111.7 114.9 105.8 112.4 117.5 120.0 116.2
113.6 116.1 117.1 117.3 102.5 104.1 113.4 125.3 116.2
133.6 133.1 132.2 136.1 122.3 114.4 128.0 142.8 131.6
76.2 84.3
65.4
84.8 86.2
92.5
88.8
81.9
87.4
111.4 111.1 108.6 112.6 97.9 114.9 119.5 116.6 120.5
105.1 107.5 110.0 114.4 111.0 116.0 118.9 118.5 114.4

109.4
97.9
107.5
80.1
118.6
112.0

114.0
122.5
142.8
84.3
119.6
106.8

118.6
126.2
148.8
83.9
123.4
112.3

Nondurable consumer goods.................. 20.67 116.0 113.0 112.2 113.2 112.1 118.8 115.7 122.1 123.7 121.8 116.7 111.0 115.4 118.3
Clothing................................................
4.32 101.4 102.0 102.5 102.6 101.4 105.5
93.6 105.6 107.0 110.7 100.5 90.5 100.5
Consumer staples............................... 16.34 119.8 115.9 114.8 116.0 114.9 122.3 121.6 126.5 128.1 124.7 121.0 116.4 119.3 120.6
Consumer foods and tobacco___
8.37 113.2 108.5 108.7 110.0 110.8 116.6 112.6 118.6 120.0 120.5 115.7 108.1 109.4 110.9
Nonfood staples.............................
Consumer chemical p ro d u c ts..
Consumer paper products........
Consumer fuel and lighting. . .
Residential utilities................

136.5 129.2 126.5 125.1 129.7 130.7
145.2 139.1 136.8 124.6 128.3 132.4
116.0 113.9 110.7 108.9 110.3 113.7
141 .2 130.0 127.4 134.6 141.5 138.9
153.0 136.6 132.5 141.0 152.3 148.1

7.98 126.8
2.64 133.2
1.91 107.8
3.43 132.4
2.25 140.1

123.7
125.7
101.8
134.3
143.0

121.2
125.7
100.1
129.6
137.1

122.3
131.2
107.1
123.8
129.2

119.1
132.4
102.0
118.4
122.3

128.3 131.2 134.7
142.2 131.8 139.4
110.2 109.6 113.9
127.6 142.7 142.6
132.4 154.4 153.2

96.0
92.3
92.9
81.4
120.5

96.6
93.9
93.3
84.3
119.6

96.0
92.8
90.3
82.9
120.9

95.3
92.4
91.7
82.0
120.3

94.2
90.3
90.9
79.1
119.2

98.0
92.6
91.6
81.5
122.6

93.3 93.9 100.3
90.4 90.1
94.9
90.5
87.0
98.2
78.5
79.3
83.3
122.7 119.8 122.0

5.97 100.1
99.7
3.30 108.4 105.3
2.00 89.0 91.5
.67 92.8 96.7

99.7
104.7
91.0
100.9

98.5
105.3
88.9
93.7

98.6
106.0
89.0
90.9

104.2
112.4
93.8
94.3

96.6
112.6
75.1
81.7

77. /
80.4

78.1
80.3

77.7
80.1

76.0
78.9

76.7
79.7

77.8
81.8

76.7
80.8

113.0 109.9
112.5 109.1

111.6
109.1

Equipment
Business equipment..................................
Industrial equipm ent.........................
Building and mining equip...........
M anufacturing equipm ent...........
Power equipm ent...........................
Commercial, transit, farm e q .* . . . .
Commercial equipm ent.................
Transit equipm ent.........................
Farm equipm ent.............................
Defense and space equipment...............
Military products...............................

12.74
6.77
1.45
3.85
1.47

7.68
5.15

98.3 106.5
110.7 115.6
82.6 92.3
83.8 103.7
77.1
81.6

99.4
94.3
97.0
81.9
124.0

97.2 95.0 95.7 98.3
93.6 92.0 9 2 .C 94.2
9 9 .C 95.7 96.8 99.3
81.1
80.4 79.3
82.3
120.9 118.7 120.2 120.4

105.2 101.3
112.0 109.4
95.3 91.0
101.2 92.1

77.8
82.2

75.2
78.7

115.8 118.0 118.6 112.3 111.9 115.9
110.0 110.4 113.0 112.4 116.6 119.8

117.5
118.6

75.8
78.9

98.3 100.0 102.9
105.0 104.8 107.8
89.8 92.5 94.5
90.6 98.5 103.4
75.9
78.7

74.6
77.7

74.9
78.0

112.6 109.0 107.5
115.4 110.3 109.5

113.0
111.4

102.3 100.2 98.6 101.5
104.2 103.8 104.0 106.3
86.6 85.2 86.8
88.9
109.4 106.2 102.1 105.8

105.3
108.6
91.4
110.8

Intermediate products
Construction products...........................
Misc. intermediate products.................

5.93
7.34

M aterials
Durable goods materials.........................
Consumer durable p a rts ...................
Equipment p arts.................................
D urable materials n.e.c.....................

20.91 100.8 103.2 104.2 104.1 107.2 106.3
4.75 101.4 104.6 104.5 102.0 106.4 104.5
86.6
5.41
88.9 89. C 87.0 89.4 89.4
10.75 107.8 109.8 111.8 113.7 116.6 115.6

Nondurable goods materials..................
Textile, paper, and chem. m at..........
N ondurable materials n.e.c..............
Fuel and power, industrial...................

13.99 113.8
8.58 116.1
5.41 110.3
2.89 116.2

113.3 112.0
114.3 112. £
111 .6 110. 8
120.5 121.9

113.7
115.6
110.8
121.4

9.34 106.8
1.82 116.7

104.9 105.9
119.2 108.1

106.9
113.8

92.1
88.3
81.7
99.1

92.0 99.9
92. C 100.1
80.1
86.9
98.0 106.3

114.3 115.8
116.0 118.C
111.6 112.4
119.5 120.4

107.2
106.5
108.2
111.4

114.5 114.8
116.9 118.7
110.6 108.6
117.7 118.3

106.9 110.6
119.6 119.1

100.2 109.3
113.0 121.2

117.4 117.5
121.3 123.C
111.2 108.S
98.5 105.7

114.3 114.7 116.9
119.1 119.7 122.9
106.7 106.7 107.5
119.2 118.9 118.9

Supplementary groups
Home goods and clothing....................
C ontainers................................................

For N o t e see p. A-63.
* Referred to as “ Nonindustrial equipm ent” in the article published in the July 1971




B u lle tin ,

112.6
120.1

pp. 551-76.

115.7
123.5

108.9 100.7
118.0 111.7

107.8
111.9

114.4
118.3

APRIL 1972 o INDUSTRIAL PRODUCTION: N.S.A.

A 63

INDUSTRY GROUPINGS
(1967= 100)

Manufacturing, total...............................
D urab le................................................
N ondurable..........................................
Mining and utilities...............................
M ining..................................................
U tilities.................................................

p o r­
tion

1972

1971

1967
Grouping

averageP

Feb.

M ar.

88.55 104.8 104.3 104.4
52.33 98.8 100.2 100.6
36.22 113.3 110.2 109.8
11.45 119.6 119.7 119.4
6.37 107.0 108.6 109.7
5.08 135.3 133.7 131.5

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

105.0
100.4
111.7
117.9
110.4
127.3

106.0
101.7
112.1
117.0
110.9
124.6

108.3
102.7
116.3
120.7
111.0
132.8

99.7
93.2
109.2
121.9
103.0
145.7

103.1
93.6
116.8
124.2
107.7
144.9

108.1 109.2 106.2
100.6 101.6 98.9
119.0 120.1 116.8
123.8 114.9 115.3
106.4 98.0 101.8
145.7 136.1 132.3

Dec.

Jan.

Feb.p

101.9 104.1 107.5
95.8 98.4 101.9
110.6 112.3 115.6
119.2 120.9 119.9
107.5 104.6 104.8
133.9 141.5 138.8

Durable manufactures
Primary and fabricated m etals.............
Primary m etals....................................
Iron and steel, subtotal.................
Fabricated metal pro d u cts...............

12.55 103.9 110.0 l l l . O 112.0 114.6 111.1 95.8
6.61 100.9 111.6 115.2 115.8 119.8 112.6 87.9
4.23 96.5 110.7 114.3 117.1 119.1 109.0 90.4
5.94 107.3 108.2 106.3 107.7 108.8 109.5 104.7

Machinery and allied goods...................
M achinery............................................
Nonelectrical m achinery...............
Electrical m achinery......................
Transportation equipm ent...............
M otor vehicles and p a rts .............
Aerospace and misc. trans. eq. ..
Instrum ents..........................................
Ordnance, private and G ovt............

32.44 94.2 95.1 9 4 .9
96.0 95.8
17.39 95.5
9.17 92.9 94.3 93.6
8 22 98.4 97.8 98.3
9.29 91.3 9 5 .4 94.6
4.56 111.6 118.9 117.7
4.73 71.8 72.8
72.3
2.07 108.5 102.2 103.7
87.0 86.3
86.2
3.69

93.4 94.4 96.7
94.9 94.8 97.0
92.5 91.4 94.2
97.5 98.6 100.2
91.6 94.2 96.1
112.0 116.9 120.5
72.0 72.4 72.6
103.4 106.9 110.8
85.2 86.2
89.2

90.0 99.0 101.5
76.2 91.1
94.5
86.2
62.4 81.9
105.3 107.7 109.3

88.8 90.3 97.6
92.2 92.6 99.5
91.8 90.6 97.2
92.6 94.9 102.0
81.7 93.2
77.8
93.5 114.4
86.1
69.7 70.4 72.8
110.9 111.4 114.9
88.1
88.9 89.8

98.9 97.4 102.7 107.3
88.8 101.0 106.2
90.3
81.3 93.7 99.9
80.7
108.4 107.1 104.6 108.5

98.1 95.5 92.2 94.8 97.3
99.4 96.8 94.3 96.9 100.0
95.5
93.4 91.4 92.4 96.6
103.8 100.6 97.6 101.9 103.8
87.2 92.0 94.4
97.2 93.6
122.4 117.5 105.9 116.6 120.8
73.0 70.6 69.2 68.3 68.9
114.4 111 .0 109.2 108.5 111.0
85.0 85.2 85.2 84.0 84.5

Lumber, clay, and glass.........................
Lum ber and p ro d u cts........................
Clay, glass, and stone p ro d u cts___

4.44 111.3 104.5 108.7 113.2 114.5 116.6
1.65 113.4 110.6 112.1 114.5 112.5 117.5
2.79 110.1 100.9 106.7 112.5 115.7 116.1

Furniture and miscellaneous...................
Furniture and fixtures........................
Miscellaneous m anufactures.............

2.90 110.1 107.4 106.6 108.7 107.6 112.3 104.2 112.0 115.9 115.3 115.6 113.5 109.7 115.1
98.6 95.8 99.3
1.38 98.7 100.7 98.5
86.8 98.0 101.8 100.6 104.6 103.4 103.0 106.9
1.52 120.5 113.6 114.0 117.9 118.4 124.1 120.0 124.8 128.8 128.7 125.6 122.7 115.9 122.5

110.4 116.0 116.5 118.1 113.0 106.6 105.7 111.8
112.2 117.6 119.5 121.6 115.3 108.4 109.9 120.8
109.4 115.1 114.7 116.1 111.6 105.6 103.2 106.4

Nondurable manufactures
Textiles, app irel, and leather...............
Leather and products.........................
Paper and printing...................................
Paper and p ro d u cts............................
Printing and publishing.....................
Chemicals, petroleum, and rubber........
Chemicals and p ro d u c ts ...................
Petroleum p ro d u c ts............................
R ubber and plastics p ro d u c ts..........
Foods and tobacco...................................

6.9 0 100.7 101.8 101.7 101.6 101.3 104.6
2.69 108.5 107.6 108.2 108.5 110.4 114.0
3.33 97.9 99.4 99.4 99.3 97.4 100.8
87.9
89.8
.88 87.3 92.7 90.4 88.8

90.8 104.4 104.9 107.8 101.3 92.4 100.2 106.6
96.9 114.5 113.6 113.8 111 .C 101.4 105.9
87.7 98.6
89.9 100.4 102.4 107.3 98.1
75.2
88.7 88.0 91.3
83.5
82.7
88.7
89.7

7.92 107.8 105.4 103.2 107.4 106.8 108.5 103.5 111.6 113.4 114.8 112.1 105.0 106.1 109.6
3.1? 116.C 118.9 113.6 117.8 116.2 116.6 105.7 117.6 116.1 122.1 120.5 111.0 120.6 124.2
4.74 102.2 96.4 96.2 100.4 100.5 103.1 102.1 107.5 111.5 109.9 106.5 100.9 96.3 99.7
11.92
7.86
1. 8C
2.26

124.3
125. £
115.7
125.9

119.4
118.9
113.5
125.8

119.7
119.5
112.C
126.4

122.2
124.3
110.9
124.0

123.2
125.3
111.7
125.0

128.6
131.1
119.1
127.7

121.6
124.2
118.9
114.8

126.7
128.6
120.9
124.7

130.7
133.1
118.9
131.9

129.9
130.8
117.8
136.6

129.0 125.8 124.6 128.5
131.2 127.6 126.1 130.1
115.2 116.5 113.5 115.2
132.2 126.9 128.3 133.3

9.48 113.3 108.8 108.8 109.6 110.5 115.9 112.0 117.7 119.4 121.2 116.8 109.5 110.8 111.0
8.81 114.5 109.2 110.2 110.9 111.4 117.2 114.0 118.6 120.4 122.3 118.2 111.9 111 .4 111.3
9 9 .C 78.7 103.6
86.2 105.7 106.5 106.1
.67 97.7 103.C 90.5 92.7 99.3 98.5

Mining
98.7 101.0 107.2 116.9 118.3 97.3 104.1 104.1
118.3 117.9 126.1 145.7 147.7 106.8 116.9 118.7
85.3 89.5 94.4 97.4 98.3 90.9 95.4 94.2

105.8 103.9 100.5
117.9 114.8 111.3
97.6 96.6 93.1

Metal, stone, and earth minerals..........
M etal m ining.......................................
Stone and earth m inerals.................

1.26 104.6
.51 121.4
.75 93.2

Coal, oil, and g a s....................................
C o a l.......................................................
Oil and gas extraction.......................

5.11 107.5 111.0 111.8 111.2 109.4 109.2 104.4 108.6 107.0 96.0 101.3 109.2 107.4 108.0
31.1
.69 99.0 109.1 114.7 117.6 112.4 111.6 82.7 116.5 112.6
56.9 111.7 103.6 99.9
4.42 108.9 111.3 111.3 114.1 108.9 108.8 107.8 107.4 106.1 106.2 108.2 108.8 108.0 109.3

93.5 91.9
106.C 108.6
84.9
80.5

Utilities
Electric......................................................

3.91 138.0 136.7 133.6 128.0 124.2 134.6 151.3
1.17 126.5 123.6 124.3

N o t e . —Published groupings include some series and subtotals n o t
shown separately. A description and historical data will be available at




150.0 150.8

138.0 132.8 136.2

146.6

143.3

a later date. Figures for individual series and subtotals are published in
the monthly Business Indexes release.

A 64

BUSINESS ACTIVITY; CONSTRUCTION o APRIL 1972
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production

M anu­
facturing 2

M arket
Period

Products

Total

Fin al prodiicts
Inter­ M ate­
mediate rials
Con­
sumer Equip­ prod­
ucts
goods ment

Total
Total

Prices 4

In­
dustry

Ca­
N onagpacity
C on­ riculutiliza­ stru
c­
tural
tion
tion
em­
in mfg.
con­
ploy(1967
M anu­ output tracts ment—
Total i
factur­ = 100)
ing

Em­
ployment

Pay­
rolls

Total
retail
sales3

Con­
sumer

Whole
sale
com ­
modity

53.3

47.9

55.1

52.0

51.5

92.8
95.5
84.1

74.1
76.3
74.4

93.4
98.2
89.6

54.5
60.3
55.1

52
54
54

79.5
80.1
80.5

88.6
87.4
87.6

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

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
r82.1
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
100.0
105.7
110.7
106.7
106.5

88.1
86.8 93.0 78.7 93.0
96.8
96.1
98.6 93.0 99.2
100.0 100.0 100.0 100.0 100.0
105.8 105.8 106.6 104.7 105.7
109.7 109.0 111.1 106.1 112.0
106.0 104.4 110.3 96.1 111.9
106.2 104.5 115.6 88.9 112.8

91.0
99.8
100.0
105.7
112.4
107.8
106.8

89.1
98.3
100.0
105.7
110.5
105.2
104.8

89.0 93.2
91.9
94.8
87.9 100.0
87.7 113.2
86.5 123.7
'7 8 .2
r74.4 132.0

92.3
97.1
100.0
103.1
106.7
107.3
107.4

93.9
99.9
100.0
101.4
103.2
98.1
94.3

88.1
97.8
100.0
108.3
116.6
114.2
116.9

91
97
100
109
114
120
122

94.5
97.2
100.0
104.2
109.8
116.3
121.3

96.6
99.8
100.0
102.5
106.5
110.4
113.9

Ju ly ...........
Aug...........
Sept...........
O ct............
N ov...........
D ec............

105.7
105.5
106.2
107.0
107.2
106.1
105.3
106.2
106.4
107.0
107.6

105.0
104.5
105.5
105.9
106.1
106.8
106.2
106.2
106.9
107.6
107.5

103.0
102.5
103.6
103.9
104.5
104.9
105.0
104.6
105.3
105.9
105.6

112.9
112.7
114.6
115.7
116.1
116.0
116.0
115.0
116.9
118.2
117.9

89.3
88.4
88.1
87.8
88.2
89.3
89.6
90.2
89.0
88.8
88.5

112.5
112.0
112.4
113.5
112.4
113.8
110.7
112.5
113.0
114.0
114.7

106.8
107.1
107.5
108.9
109.0
105.3
104.0
106.2
105.6
106.0
107.6

103.9
103.2
104.4
105.7
105.6
104.9
103.6
104.9
105.4
105.3
105.4

126.0
141.0
161.0
141.0
147.0
151.0
153.0
156.0
137.0
155.0
160.0

106.9
107.0
107.2
107.5
107.3
107.1
107.1
107.6
107.6
107.9
108.1

94.4
94.0
94.4
94.8
94.3
93.9
93.5
94.5
94.1
94.4
94.2

115.0
114.7
115.4
117.6
117.7
116.8
116.5
117.0
117.8
'■118.4
121.1

126
127
128
128
129
129
133
135
134
136
133

119.4
119.8
120.2
120.8
121.5
121.8
122.1
122.2
122.4
122.6
123.1

112.8
113.0
113.3
113.8
114.3
114.6
114.9
114.5
114.4
114.5
115.4

1972—Jan ............
F eb............
M ar.* '.. . .

108.2
108.9
109.6

108.1
108.5
108.9

106.2 118.5
106.7 119.3
107.0 119.5

88.7
89.1
89.6

115.0
115.3
116.1

108.4
109.4
110.6

106.5 1
107.4 } 74.5
108.0 J

165.0
155.0

108.7
108.9
109.3

94.5
r94.9
95.5

r 122.2
r 124.6
125.4

r 133
134

123.2
123.8

116.3
117.3
117.4

1952.......................
1953.......................
1954.......................

51.9

51.8

50.8

1955.......................
1956.......................
1957.......................
1958.......................
1959.......................

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

I960.......................
1961.......................
1962.......................
1963.......................
1964.......................

66.2
66.7
72.2
76.5
81.7

66.2
66.9
72.1
76.2
81.2

64.8
65.3
70.8
74.9
79.6

1965.......................
1966.......................
1967.......................
1968.......................
1969.......................
1970.......................
1971p.....................
1971 _ F e b ............
M ar...........
A pr............
M ay..........

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.
5 Figure is fo r first quarter 1971.
N o te .— A ll series: D ata are seasonally adjusted unless otherwise noted.

!• r75.4
j
1
r73.9
I
j
\ r 73.8
j

Capacity utilization: Based on data from Federal Reserve, M cGrawHill Economics D epartment, and D epartm ent o f Commerce.
Construction contracts: F. W. Dodge Co. monthly index o f dollar
value o f 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 L abor Statistics data.

CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS
(In millions o f dollars, except as noted)
1972

1971
Type o f ownership and
type o f construction

1970

1971
Feb.

Total construction 1............................
By type o f ow nership:
Public............................................
Private 1.......................................

M ar.

A pr.

M ay

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

67,097 78,878 4,993 6,386 7,743 7,555 8,077 7,670 7,712 6,814 6,568 6,405 6,286 6,234 5,607
23,362 24,183
45,058 56,408

1,578 1,722 2,074 2,065 2,795 2,683 2,299 2,010 1,837 1,960 1,696 2,137 1,634
3,415 4,663 5,669 5,489 5,489 4,987 5,413 4,804 4,731 4,445 4,590 4,097 3,973

24,910 35,226
24,180 26,577
18,489 20,509

1 819 2,729 3,168 3,310 3,485 3,357 3,255 3,196 3,170 3,001 2,997 2,667
1,654 2 199 2,080 2,264 2,800 2,621 2,120 2,246 2,064 2,128 1.959 1,728
1,520 1 458 2,495 1,981 1,792 1,691 2,337 1,371 1 332 1,274 1.959 1,840

By type o f construction:

Private housing units a u th o riz e d ...
(In thousands, S.A., A.R.)

1,324

1,885

1,563

1,627

1,638

1,927 1,849 2,052 2,006

1,900 2,173

1,961

2,292 r2 , 105 2,112

N o t e . —D ollar value o f construction contracts as reported by the F. W.
1 Because o f improved collection procedures, data for 1-family homes
Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly
beginning Jan. 1968 are not strictly comparable with those for earlier
data
exceed annual totals because adjustments—negative—are made into
periods. To improve comparability, earlier levels may be raised by ap­
accumulated monthly data after original figures have been published.
proximately 3 per cent for total and private construction, in each case,
Private
housing units authorized are Census Bureau series for 13,000
and by 8 per cent for residential building.
reporting areas with local building permit systems.




APRIL 1972 □ CONSTRUCTION

A 65

VALUE OF NEW CONSTRUCTION ACTIVITY
(In millions o f dollars)
Private
N onresidential
Period

Total
Total

Buildings

Resi­
dential
Indus­
trial

Other
build­
ings 1

Other

Com ­
mercial

Total

M ili­
tary

High­
way

Conser­
vation
&
O ther 2
develop­
ment

59,965
64,563
67,413
73,412
76,002

42,096
45,206
47,030
51,350
51.995

25,150
27,874
28,010
27,934
25,715

c16,946
*17,332
cl 9,020
c23,416
c26,280

2,842
2,906
3,565
5,118
6,679

5,144
4,995
5,396
6,739
6,879

3,631
3,745
3,994
4,735
5,037

c5 ,329
c5,686
*6,065
c6,824
c7 ,685

17,869
19,357
20,383
22,062
24,007

1,266
1,179
910
830
727

6,365
7,084
7,133
7,550
8,405

1967
1968
1969
1970
197 1

77,503
86,626
93,347
94,265
108,968

51,967
59,021
65,384
66,147
79,080

25,568
30,565
33,200
31,748
42,379

c26,399
=28,456
c32,184
*34,399
36,701

6,131
6,021
6,783
6,538
5,423

6,982
7,761
9,401
9,754
11,619

4,993
4,382
4,971
5,125
5,437

c8,293
n o , 292
"11,029
'12,982
14,222

25,536
27,605
27,963
28,118

695
808
879
719

8,591
9,321
9,252
9,986

1971—F eb ...
M ar..
A pr..
M a y ..
June.
Ju ly '.
A u g .r
Sept.r
O c t.r .
N o v .r
D e c .r

102.340
103,027
105,875
107,591
109,210
109,801
111,778
110,319
114,748
115,186
117,017

70,743
72,961
76,263
77,880
79,941
80,328
81,939
81,730
82,905
84,764
85,989

36,509
37,678
39,589
41,500
42,326
42,533
43,795
45,027
46,135
46,841
47,741

34,234
35,283
36,674
36,38^
37,615
37,795
38,144
36,703
36,770
37,923
38,248

6,258
6,072
6,110
5,766
5,508
5,428
4,852
4,597
4,993
4,885
4,914

10,106
10,734
11,262
11,038
11,795
12,690
13,069
11,702
11,510
12,188
12,391

5,009
5,099
5,355
5,289
5,815
5,499
5,482
5,591
5,372
5,670
5,770

12,861
13,378
13,947
14,287
14,497
14,178
14,741
14.813
14,895
15,180
15,173

31,597
30,066
29,612
29,711
29,269
29,473
29,839
28,573
31,843
30,422
31,028

812
863
824
848
865
1,142
900
786
881
938
918

1,566
1,676
1,756
1,702
1,614
2,150
1,609
1,570
1,540
1,697
1,454

1972—J a n .r .
F ib ...

120,213
120.340

88,220
88.996

49,725
51,690

38,495
37,306

4,864
4,748

13,366
13,124

5,698
5,621

14,567
13.813

31,993
31,344

1,015
998

1,914
1,769

1962 3 .........
1963 4 .........
1964
1965
1966

1 Includes religious, educational, hospital, institutional, and other build­
ings.
2 Sewer and water, formerly shown separately, now included in “ Other.”
3 Beginning July 1962, reflects inclusion o f new series affecting most
private nonresidential groups.

4 Beginning 1963, reflects inclusion o f new series under “ Public” (for
State and local govt, activity only).
N o t e . —Census Bureau data, monthly series at seasonally adjusted
annual rates.

NEW HOUSING UNITS
(In thousands)
Units started
Private (S.A., A.R -)
Region

Government
underwritten
(N.S.A.)

Private and public
(N.S.A.)

Period

M obile
home
ship­
ments
(N.S.A.)

Type of structure

Total
N orth­ N orth South
Central
east

West

1family

5- or
2- to 4- morefamily family

Total

Private

5 89

450

1,642
1,562

Public

Total

FHA

VA

1,610
1,529

32
32

292
264

221
205

71
59

151
191

1963............................
1964............................

1,610
1,529

261
253

328
339

591
582

431
355

1,021
972

108

1965............................
1966............................
1967............................
1968............................
1969............................
1970............................
1971............................

1,473
1,165
1,292
1,508
1,467
1,434
2,051

270
207
215
227
206
218
263

362
288
337
369
349
294
434

575
473
520
619
588
612
869

266
198
220
294
323
310
485

964
779
844
900
810
813
1,151

87
61
72
81
87
85
120

422
325
376
527
571
536
780

1,510
1,196
1,322
1,548
1,500
1,467
1,467

1,473
1,165
1,292
1,508
1,467
1,434
1,434

37
31
30
40
33
33
33

246
195
232
283
288
479
479

197
158
180
227
237
418
418

49
37
53
56
51
61
61

216
217
240
318
413
401
401

1971—Feb.................
M ar................
A pr.................
M ay...............
Ju n e...............
Ju ly .................
Aug.................
Sept................
O ct..................
Nov................
D e c.r .............

1,794
1,938
1,951
2,046
2,008
2,091
2,219
2,029
2,038
2,228
2,457

231
233
224
257
250
271
279
249
242
305
437

337
413
435
412
396
436
493
454
435
483
508

762
821
841
860
864
849
941
876
895
950
995

463
471
450
517
498
535
505
449
465
489
518

1,005
1,080
1,122
1,152
1,150
1,162
1,198
1,172
1,155
1,242
1,347

112
117
120
115
127
131
143
137
108
102
121

677
741
709
779
731
798
878
720
774
883
989

105
169
204
204
197
197
206
176
182
179
155

102
168
201
199
194
194
205
174
180
176
152

2
1
3
5
3
3
2
2
2
3
3

32
40
53
49
55
52
55
58
47
57
92

27
33
45
41
46
43
46
50
39
48
85

5
7
8
8
9
9
9
9
8
9
7

28
36
43
41
47
45
50
53
50
40
34

1972—J a n .' ...............
Feb.................

2,471
2,678

430
279

430
570

984
1,215

628
614

1,410
1,315

174
216

888
1,147

150
153

148
152

2
1

44
28

36
28

8

33

N o t e . —Starts are Census Bureau series (including farm starts) except
for G ovt.-underwritten, which are from Federal Housing Admin, and
Veterans Admin, and represent units started, including rehabilitation




units under FHA, based on field office reports o f first compliance inspec­
tions. D ata may not add to totals because o f rounding.
Mobile home shipments are as reported by Mobile Homes M anufac­
turers Assn.

A 66

EMPLOYMENT □ APRIL 1972
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
(In thousands o f persons, except as noted)
Civilian labor force (S.A.)
Total noninstitutional
population
(N.S.A.)

Period

N ot in
labor force
(N.S.A.)

Total
labor
force
(S.A.)

E m ployed1
Total
Total

In nonagricultural
industries

In
agriculture

Unem­
ployed

Unemploy
ment
rate2
(per c ent;
S.A.)

1966.............................
1967 3..........................
1968.............................
1969.............................
1970.............................
1971.............................

131,180
133,319
135,562
137,841
140,182
142,596

52,288
52,527
53,291
53,602
54,280
55,666

78,893
80,793
82,272
84,240
85,903
86,929

75,770
77,347
78,737
80,734
82,715
84,113

72,895
74,372
75,920
77,902
78,627
79,120

68,915
70,527
72,103
74,296
75,165
75,732

3,979
3,844
3,817
3,606
3,462
3,387

2,875
2,975
2,817
2,832
4,088
4,993

3.8
3.8
3.6
3.5
4.9
5.9

1971—M ar..................
Apr..................
M ay.................
June.................
Ju ly ..................
Aug..................
Sept..................
Oct...................
N ov..................
Dec..................

141,885
142,088
142,285
142,482
142,685
142,886
143,104
143,321
143,517
143,723

56,286
56,308
56,331
54,698
53,877
54,433
56,220
55,968
55,802
56,181

86,385
86,670
86,836
86,217
86,727
87,088
87,240
87,467
87,812
87,883

83,455
83,788
83,986
83,401
83,930
84,313
84,491
84,750
85,116
85,225

78,446
78,732
78,830
78,600
79,014
79,199
79,451
79,832
80,020
80,098

75,059
75,192
75,418
75,299
75,640
75,792
76,088
76,416
76,601
76,698

3,387
3,540
3,412
3,301
3,374
3,407
3,363
3,416
3,419
3,400

5,009
5,056
5,156
4,80t
4,916
5,114
5,040
4,918
5,096
5,127

6 .0
6.0
6.1
5.8
5.9
6.1
6 .0
5.8
6 .0
6.0

1972—Jan ...................
Feb..................
M ar.................

144,697
144,895
145,077

57,550
57,577
57,163

88,301
88,075
88,817

85,707
85,535
86,313

80,636
80,623
81,241

77,243
77.266
77,759

3,393
3,357
3,482

5,071
4,912
5,072

5.9
5.7
5.9

1 Includes self-employed, unpaid family, and domestic service workers.
2 Per cent o f civilian labor force.
3 Beginning 1967, d ata not strictly comparable with previous data.
D escription o f changes available from Bureau o f L abor Statistics.

N ote.— Bureau of Labor Statistics. Information relating to persons 16
years of age and over is obtained on a sample basis. M onthly data relate
to the calendar week that contains the 12th day; annual data are averages
o f monthly figures.

EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION
(In thousands o f persons)
Contract
construc­
tion

Finance

Service

G overn­
ment

4,151
4,261
4,310
4,429
4,504
4.481

13,245
13,606
14,084
14,639
14,922
15,174

3,100
3,225
3,382
3,564
3,690
3,800

9,551
10,099
10,623
11,229
11,630
11,917

10,792
11,398
11,845
12,202
12,535
12,858

3,264
3,282
3,275
3,255
3,228
3,219
3,250
3,290
3,320
3,245

4,520
4,505
4,518
4,500
4,476
4,428
4,460
4,442
4,434
4,465

15,074
15,107
15,148
15,135
15,158
15,223
15,273
15,270
15,278
15,315

3,758
3,769
3,788
3,807
3,806
3,804
3,821
3,834
3,851
3,860

11,841
11,843
11,858
11,895
11,921
11,946
11,962
11,996
12,044
12,089

12,792
12,831
12,858
12,838
12,812
12,843
12,855
12,935
12,987
13,038

616
611
613

3,320
3,239
3,257

4,502
4,483
4,528

15,447
15,491
15,529

3,872
3,878
3,887

12,120
12,164
12,198

13,098
13,160
13,200

18,488
18,482
18,554
18,746
18,448
18,651
18,840
18,709
18,693
18,595

608
617
622
634
613
625
623
522
524
605

2,967
3,164
3,265
3,414
3,480
3,509
3,471
3,478
3,410
3,177

4,466
4,469
4,500
4,549
4,534
4,486
4,509
4,455
4,447
4,469

14,789
14,974
15,071
15,192
15,132
15,151
15,242
15,327
15,537
16,089

3,735
3,758
3,780
3,837
3,867
3,865
3,829
3,826
3,836
3,841

11,758
11,867
11,953
12,050
12,040
11,994
11,986
12,020
12,032
12,029

12,971
12,978
12,993
12,933
12,338
12,261
12,684
13,042
13,159
13,229

18,440
18,523
18,645

602
595
599

2,965
2,883
2,961

4,430
4,411
4,474

15,266
15,143
15,285

3,833
3,843
3,864

11,926
12,018
12,113

13,181
13,333
13,387

Total

M anufac­
turing

1966...............................................................
1967..............................................................
1968...............................................................

63,955
65,857
67,915
70,284
70,616
70,699

19,214
19,447
19,781
20,167
19,369
18,610

627
613
606
619
622
601

3,275
3,208
3,285
3,435
3,345
3.259

1971—M ar...................................................
A pr....................................................
M ay..................................................
June..................................................
Ju ly ...................................................
Aug...................................................
Sept...................................................
O ct....................................................
N ov...................................................
D ec....................................................

70,480
70,599
70,769
70,657
70,531
70,529
70,853
70,848
71,042
71,185

18,609
18,639
18,702
18,608
18,533
18,457
18,616
18,560
18,603
18,566

622
623
622
619
597
609
616
521
525
607

1972

71,584
71,702
71,978

18,609
18,676
18,766

N ov...................................................
Dec....................................................

69,782
70,309
70,738
71,355
70,452
70,542
71,184
71,379
71,638
72,034

1 9 7 2 -Ja n .....................................................
Feb.*-................................................
M ar.P...............................................

70,643
70,749
71.328

1970...............................................................
1971...............................................................

T ransporta­
tion & pub­
lic utilities

Trade

Period

Mining

SEASONALLY ADJUSTED

Jan ....................................................
Feb.^................................................
M ar.p ...............................................

NOT SEASONALLY ADJUSTED
1971

M ar...................................................
A pr....................................................
June..................................................
Ju ly ...................................................

N o t e . — Bureau of L abor Statistics; data include all full- and p art­
time employees who w orked during, o r received pay for, the pay pe­
riod that includes the 12th of the m onth. Proprietors, self-employed




persons, dom estic servants, unpaid fam ily w orkers, and m em bers of
the A rm ed Forces are excluded.
Beginning w ith 1969, series h as been adjusted to M ar. 1970 bench­
m ark.

APRIL 1972 o EMPLOYMENT AND EARNINGS

A 67

PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES
(In thousands o f persons)
Seasonally adjusted1
Industry group

1971

N ot seasonally adjusted1

1972

1971

1972

M ar.

Jan.

Feb.p

M ar.?

M ar.

Jan.

Feb.2

Mar.p

13,448

13,527

13,581

13,662

13,345

13,373

13,448

13,557

Durable goods........................................................................
O rdnance and accessories..........................................
Lum ber and wood products......................................
Furniture and fixtures................................................
Stone, clay, and glass pro d u cts................................
Prim ary metal industries............................................

7,569
99
487
370
492
1,002

7,629
90
520
395
510
934

7,668
89
517
397
510
934

7,728
89
523
398
512
954

7,552
99
476
367
480
1,004

7,581
90
501
395
491
929

7,630
90
502
395
492
935

7,710
89
511
396
499
956

Fabricated metal pro d u cts........................................
M achinery.....................................................................
Electrical equipment and supplies...........................
T ransportation equipm ent........................................
Instrum ents and related p ro d u cts...........................
Miscellaneous manufacturing industries................

980
1,172
1,173
1,225
255
316

1,016
1,168
1,192
1,219
260
325

1,025
1,177
1,205
1,223
262
329

1,035
1,179
1,219
1,225
263
331

974
1,187
1,168
1,237
254
305

1,014
1,168
1,194
1,232
260
307

1,020
1,186
1,203
1,232
262
314

1,029
1,195
1,214
1,237
264
320

Food and kindred p ro d u cts......................................
Tobacco m anufactures...............................................
Textile-mill products...................................................
Apparel and related pro d u cts...................................
Paper and allied products..........................................

5,879
1,184
64
839
1,197
526

5,898
1,183
58
862
1,180
528

5,913
1,177
58
862
1,189
529

5,934
1,180
61
869
1,189
531

5,793
1,108
57
836
1,205
522

5,792
1,120
58
855
1,164
524

5,818
1,102
56
857
1,191
524

5,847
1,104
55
866
1,196
526

Printing, publishing, and allied industries.............
Chemicals and allied products.................................
Petroleum refining and related industries...............
R ubber and misc. plastic products...........................
Leather and leather p roducts....................................

668
583
116
440
262

666
581
114
464
262

668
578
119
467
266

669
576
116
474
269

669
585
113
437
261

662
575
110
462
261

666
576
113
467
266

669
578
113
471
267

l D ata adjusted to 1970 benchm ark.

N o t e . — Bureau o f L abor 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 o f the month.

HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES
Average weekly earnings1
(dollars per week; N.S.A.)

Average hours w orked1
(per week; S.A.)
Industry group

1971

1972

1971

1972
Mar.P

M ar.

Jan.

139.74 147.66 149.17 150.72

3.52

3.71

3.72

3.74

3.75
3.77
3.05
2.85
3.57
4.12

3.95
3.98
3.21
2.98
3.76
4.54

3.96
4.04
3.20
2.98
3.78
4.55

3.99
4.01
3.25
3.00
3.80
4.57

159.15
175.97
146.73
193.86
149.51
120.65

3.66
3.94
3.46
4.42
3.49
2.93.

3.88
4.16
3.60
4.60
3.67
3.07

3.89
4.18
3.62
4.65
3.68
3.07

3.92
4.22
3.65
4.66
3.71
3.07

39.7
40.0
34.0
41.2
36.3

39.5 124.87 132.16 133.23 133.62
40.1 133.27 140.10 139.79 142.04
35.0 114.45 113.21 113.57 114.92
41.2 102.51 109.75 111.11 111.38
35.7 87.44 90.37 92.52 92.26

3.21
3.34
3.11
2.55
2.47

3.38
3.52
3.32
2.69
2.56

3.39
3.53
3.39
2.71
2.57

3.40
3.56
3.39
2.71
2.57

42.7
37.5
41.9
42.0
41.0
38.5

42.6
37.7
41.7
41.7
40.9
38.1

159.64 162.01 162.01
161.39 162.19 165.88
170.56 171.39 170.97
201.83 202.03 202.59
143.72 144.08 142.56
101.99 103.95 101.68

3.60
4.09
3.84
4.50
3.32
2.59

3.81
4.35
4.10
4.84
3.54
2.67

3.83
4.36
4.11
4.88
3.54
2.70

3.83
4.40
4.10
4.87
3.52
2.69

Jan.

Feb.p

T o ta l..........................................................................

39.8

40.0

40.5

40.4

Ordnance and accessories.............................
Lum ber and wood products........................
Furniture and fixtures....................................
Stone, clay, and glass products...................
Prim ary metal industries..............................

40.4
41.9
39.9
39.7
41.7
40.8

40.6
41.2
40.9
40.3
41.8
40.6

41.1
42.5
40.8
40.8
42.1
41.1

41.0 151.50 159.58
42.1 157.59 165.97
40.9 121.70 128.40
40.5 112.29 118.31
42.2 147.44 153.78
41.0 168.10 184.78

161.17 163.59
170.89 168.42
128.96 132.93
118.90 120.60
156.11 158.84
186.10 187.83

Fabricated metal products...........................
M achinery........................................................
Electrical equipment and supplies..............
Transportation equipm ent...........................
Instruments and related products...............
Miscellaneous m anufacturing industries...

40.3
40.2
39.7
41.7
39.7
38.8

40.4
41.0
40.1
40.7
40.3
39.0

41.0
41.3
40.6
41.9
40.7
39.5

40.8
41.4
40.2
42.0
40.3
39.3

157.16
172.63
145.16
191.58
148.30
120.04

39.1
40.5
38.0
40.3
35.2

39.4
40.1
34.8
41.3
35.7

41.9
37.5
41.4
41.9
40.3
37.4

42.1
37.5
41.8
42.2
40.8
38.0

Textile-mill products......................................
Apparel and related pro d u cts.....................
Paper and allied pro d u cts............................
Printing, publishing, and allied industries.
Chemicals and allied products.....................
Petroleum refining and related industries .
R ubber and misc. plastic products.............
Leather and leather products......................
1 D ata adjusted to 1970 benchmark.




1972

1971

M ar.

Food and kindred products.........................

Average hourly earnings1
(dollars per ho u r; N.S.A.)

M ar.p

Mar.

146.77
159.57
137.36
182.55
138.55
113.68

149.76
153.38
158.98
188.10
132.47
96.09

Jan.

155.59
170.56
144.00
186.76
147.17
118.81

Feb.p

Feb.p

M ar.p

N o t e . — Bureau of Labor Statistics; data are for production and related
workers only.

A 68

PRICES □ APRIL 1972
CONSUMER PRICES
(1967 = 100)
Housing

Period

All
items

Food
Total

Rent

Home­
owner­
ship

H ealth and recreation

Fuel
oil
and
coal

Gas
and
elec­
tricity

40.5
48.0

81.4
79.6

1929............................
1933............................
1941............................
1945............................

51.3
38.8
44.1
53.9

48.3
30.6
38.4
50.7

53.7
59.1

76 .0
54.1
57.2
58.8

1960............................
1961............................
1962............................
1963............................
1964............................

88.7
89.6
90.6
91.7
92.9

88.0
89.1
89.9
9 1 .2
9 2 .4

90.2
90.9
91.7
92.7
93 .8

91.7
92.9
94.0
9 5 .0
95.9

86.3
86.9
87.9
89.0
90.8

89.2
91.0
91.5
9 3.2
92.7

98.6
99.4
99.4
99.4
99.4

1965............................
1966............................
1967............................
1968............................
1969............................
1970............................
1971............................

94.5
97.2
100.0
104.2
109.8
116.3
121.3

9 4 .4
99.1
100.0
103.6
108.9
114.9
118.4

94.9
97.2
100.0
104.2
110.8
118.9
124.3

96.9
9 8 .2
100.0
102.4
105.7
110.1
115.2

92.7
96.3
100.0
105.7
116.0
128.5
133.7

9 4.6
97.0
100.0
103.1
105.6
110.1
117.5

1971— Feb................. 119.4
M ar................ 119.8
A pr................. 120.2
M a y ............... 120.8
J u n e ............... 121.5
July................. 121.8
Aug................ tl2 2 .1
Sept................ t 122.2
O ct.................. t 122.4
N ov................ 122.6
D ec................. 123.1

115.9
117.0
117.8
118.2
119.2
119.8
120.0
119.1
118.9
119.0
120.3

122.6
122.4
122.5
123.2
124.0
124.5
125.1
125.5
125.9
126.4
126.8

113.6
113.9
114.4
114.7
115.2
115.4
115.8
116.1
116.4
116.6
116.9

132.3
131.2
130.9
131.6
133.0
133.5
134.4
135.1
135.7
136.7
137.0

1972—Jan ..................
F eb.................

120.3
122.2

127.3
127.6

117.1
117.5

137.8
138.0

123.2
123.8

F ur­ Apparel Trans­
nish­
and
p orta­
ings upkeep tion
and
opera­
tion

Total

M ed­
ical
care

Per­
sonal
care

R ead­
ing
and
recrea­
tion

37.0
42.1

41 2
55 1

47 7

Other
goods
and
serv­
ices

48.5
36.9
44.8
61.5

44.2
47.8

93.8
93.7
93.8
94.6
95.0

89.6
90.4
90.9
91.9
92.7

89.6
90.6
92.5
93.0
94.3

85.1
86.7
88.4
90.0
91.8

79.1
81.4
83.5
85.6
87.3

90.1
90.6
92.2
93.4
94.5

87.3
89.3
91.3
92.8
9 5 .0

87.8
88.5
89.1
9 0 .6
9 2 .0

99.4
99.6
100.0
100.9
102.8
107.3
114.7

95.3
9 7 .0
100.0
104.4
109.0
113.4
118.1

93.7
96.1
100.0
105.4
111.5
116.1
119.8

95.9
97.2
100.0
103.2
107.2
112.7
118.6

93.4
96.1
100.0
105.0
110.3
116.2
122.2

89.5
93.4
100.0
106.1
113.4
120.6
128.4

95.2
97.1
100.0
104.2
109.3
113.2
116.8

95.9
97.5
100.0
104.7
108.7
113.4
119.3

9 4.2
9 7 .2
100.0
104.6
109.1
116.0
120.9

117.2
117.4
117.3
117.2
117.4
117.5
117.8
117.8
117.8
118.1
118.1

112.8
113.3
113.9
114.4
114.6
114.7
115.7
115.7
115.7
116.2
118.2

115.9
116.4
117.0
118.1
118.7
118.9
119.1
119.4
119.5
119.5
119.6

118.1
117.5
118.6 117.8
119.1
118.1
120.2 118.8
120.1
119.6
119.3 119.5
119.0 t l 19.3
120.6 t 118.6
121.6 1119.3
121.9 118.8
121.8 118.6

120.2
120.6
121.2
121.6
122.1
122.6
123.1
123.6
123.5
123.7
123.9

125.8
126.8
127.5
128.1
128.6
129.3
130.0
130.4
129.6
129.7
130.1

115.4
115.8
116.3
116.5
116.8
117.1
117.5
117.6
117.9
117.9
117.9

117.5
117.7
118.4
118.9
119.3
119.6
119.7
120.5
120.5
120.8
121.1

119.1
119.4
119.7
119.9
120.3
121.2
121.8
122.4
122.6
122.8
123.0

118.7
118.7

119.0
119.4

119.5
119.6

120.2
120.7

124.3
124.7

130.5
131.0

118.1
118.4

121.4
121.5

123.5
124.3

119.0
118.3

Bureau o f Labor Statistics index for city wage-earners and clerical workers,
t Reflects effect o f refund o f Federal excise tax on new cars.

N o te .—

WHOLESALE PRICES: SUMMARY
(1967 = 100)
Industrial commodities

Period

Pro­
All
Farm cessed
com ­ pro
d
­
foods
m odi­ ucts
and
ties
feeds Total

Tex­
tiles,
etc.

R ub­
Hides, Fuel, Chem­
icals,
ber,
etc.
etc.
etc.
etc.

M a­
Lum ­ Paper, M et­ chin­
urni­
ery Fture,
ber,
als,
etc.
and
etc.
etc. equip­
etc.
m ent

Non- Trans­
me­ porta­ M is­
tallic tion cella­
min­ equip­ neous
erals m ent1
97.2
97.6
97.6
97.1
97.3

I9 6 0 ................................
1961................................
1962................................
1963................................
1964................................

94.9
94.5
94.8
94.5
94.7

97.2
96.3
98.0
96.0
94.6

89.5
91 .0
91.9
92.5
92.3

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

96.1 101.8 103.1
97.2 100.7 99.2
96.7 99.1
96.3
96.3 97.9 96.8
93.7 98.3 95.5

95.3
91.0
91.6
93.5
95.4

98.1
95.2
96.3
95.6
95.4

92.4
91.9
91.2
91.3
93.8

92.0
91.9
92.0
92.2
92.8

99.0
98.4
97.7
97.0
97.4

1965................................
1966................................
1967................................
1968................................
1969................................
1970................................
1971................................

96.6
99.8
100.0
102.5
106.5
110.4
113.9

98.7
105.9
100.0
102.5
109.1
111 .0
112.9

95.5
101.2
100.0
102.2
107.3
112.0
114.3

96.4
98.5
100.0
102.5
106.0
110.0
114.0

99.8
100.1
100.0
103.7
106.0
107.2
108.6

94.3
103.4
100.0
103.2
108.9
110.1
114.0

95.5
99.0 95.9
97.8 99.4 97.8
100.0 100.0 100.0
98.9 99.8 103.4
100.9 99.9 105.3
105.9 102.2 108.6
114.2 104.2 109.2

95.9
100.2
100.0
113.3
125.3
113.7
127.0

96.2
98.8
100.0
101.1
104.0
108.2
110.1

96.4
98.8
100.0
102.6
108.5
116.7
119.0

93.9
96.8
100.0
103.2
106.5
111.4
115.5

96.9
98.0
100.0
102.8
104.9
107.5
109.9

97.5
95.9
97.7
98.4
100.0
100.0
103.7
102.2
107.7 io o .8 105.2
113.3 104.5 109.9
122.4 110.3 112.8

1971—Feb.....................
M ar....................
A pr.....................
M a y ...................
J u n e ...................
Ju ly ....................
Aug.....................
Sept....................
O ct.....................
N ov....................
D ec.....................

112.8 113.9
113.0 113.0
113.3 113.0
113.8 114.0
114.3 116.0
114.6 113.4
114.9 113.2
114.5 110.5
114.4 111.3
114.5 112.2
115.4 115.8

113.3
113.7
113.5
114.5
114.9
116.0
115.4
114.6
114.1
114.4
115.9

112.5
112.8
113.3
113.7
113.9
114.5
115.1
115.0
115.0
114.9
115.3

106.7
106.9
107.5
107.8
108.5
109.2
109.7
109.7
109.6
109.8
110.6

112.4
112.5
114.0
114.4
114.2
114.2
114.4
114.7
114.7
115.1
116.2

113.0
112.8
113.0
114.2
114.4
114.4
114.8
115.3
114.8
114.7
115.0

104.2
104.5
104.5
104.3
104.4
104.4
104.3
104.3
104.2
103.8
103.4

117.5
123.4
124.6
124.9
126.1
130.6
134.6
134.3
131.8
131.3
132.7

109.3
109.3
109.6
109.9
110.2
110.5
110.6
110.6
110.6
110.6
110.7

116.4
116.5
117.8
118.5
118.5
119.4
121.1
121.1
121.0
120.9
120.8

114.6
114.9
115.0
115.3
115.5
115.7
116.1
116.0
116.0
115.9
116.2

109.7
109.6
109.7
109.9
109.8
110.0
110.2
110.2
110.2
110.2
110.2

119.0
120.9
121.6
121.8
122.2
123.3
124.2
124.2
124.1
124.0
124.2

116.0 103.4 109.5 134.9 110.8 121.4 116.5
116.1 103.5 109.2 137.7 111.6 122.6 117.1

110.2
110.8

124.3 113.4 113.7
124.6 113.6 114.0

1972—Jan ...................... 116.3
F eb..................... 117.3

117.8
120.7

117.2 115.9
118.8 116.5

1 For transportation equipment, Dec. 1968 = 100.




111.3 117.8
112.0 119.1

109.1
109.1
109.0
108.7
108.7
109.7
109.8
109.7
109.5
109.5
109.4

93.0
93.3
93.7
94.5
95.2

109.7
109.5
109.7
109.8
110.0
110.3
110.5
109.6
110.7
110.8
112.9

112.6
112.8
112.7
112.5
112.6
112.8
113.0
113.0
113.0
113.1
113.2

APRIL 1972 □ PRICES

A 69

WHOLESALE PRICES: DETAIL
(1967=100)

1972

G roup
Feb.

Dec.

Jan.

Feb.

118.3
111.7
118.9

126.3
95.3
124.7
87.2
102.5
119.0
114.4
109.2
117.3

124.9
94.1
132.2
94.3
109.5
120.5
92.6
108.7
118.0

127.5
93.0
139.6
105.4
113.2
120.5
91.9
110.2
116.8

111 .6

120.4
117.4
115.8

112.2
125.4
117.3
116.0

120.2

120.1

112.4
130.5
117.5
116.1
121.1
116.8
133.5
116.8
120.1
121.1
113.8
103.7

Farm products:

1972
Feb.

Feb.

Dec

109.6
112.2
105.0
112.7
101.3
109.4
100.4

111.0
111.5
124.6
114.7
102.7
110.1
104.6

111.1
111.5
124.9
114.9
102.7
110.3
104.7

111.9
111.5
126.6
115.3
103.5
111.4
104.7

118.0
117.0
114.2
115.8
115.5
113.2
114.1
115.7
117.7

125.3
128.2
114.9
124.2
117.7
118.4
116.3
120.4
120.9

126.8
129.6
114.4
124.2
118.4
118.2
115.9
121.3

128.2
131.0
115.0
127.1
119.0
118.6
116.2
122.0
123.2

116.8
120.5
116.0

118.6
123.2
118.4

119.9
124.3
118.5

121.5
124.7
118.9

Pulp, paper, and allied products:

Fresh and dried produce.......................
G rains.........................................................
Livestock...................................................
Live poultry..............................................
Plant and anim al fibers..........................
Fluid m ilk .................................................
Eggs............................................................
Hay and seeds..........................................
O ther farm products...............................

100.0

88.0
117.7
97.6
108.6
119.5

Processed foods and feeds:
Cereal and bakery p ro d u cts.................
M eat, poultry, and fish..........................
Dairy p ro d u c ts........................................
Processed fruits and vegetables............
Sugar and confectionery........................
Beverages and beverage m aterials. . . .
Animal fats and oils...............................
Crude vegetable o ils...............................
Refined vegetable oils...........................
Vegetable oil end p ro d u c ts.................
Miscellaneous processed foods............
M anufactured animal feeds..................

C otton p ro d u cts....................................
W ool p r o d u c ts ......................................
M anm ade fiber textile p ro d u cts. . . . .
A pparel....................................................
Textile housefum ishings......................
Miscellaneous textile p ro d u c ts...........

116.4
122.3
118.2
122.7

122.6

127.6
147.7
119.4
111.9
104.9

122.0

113.1
104.5

116.4
121.4
114.2
121.0

121 7
113.6
103.8

107.5
95.4
97.4
112.0

103.4
107.3

113.6
91.5
104.3
113.8
106.1
136.2

116.7
92 .0
105.4
113.8
106.2
137.4

118.0
92.2
105.9
114.0
108.5
141.6

105.3
108.7
116.3
107.6

i
j
|
i

128.6
117.0
117.1
109.8

136.0

148.9
120.6
118.5
111.2

120.0

118.1
110.6

Fuels and related products, and power:
C o a l..........................................................
C oke.........................................................
Gas fuels...................................................
Electric p o w e r........................................
Crude petroleum ....................................
Petroleum products, refined...............

176.0 j 190.2
145.9 | 150.5
108.1 , 107.9
110.2 ; 116.3
113.2 ! 113.2
106.9 106.1

192.7
150.5
110.0
118.9
113.2
106.1

192.6
155.0
110.2
120.0
113.2
105.5

101.9
114.5
103.6
102.4
142.6
92.6
89.8
111 .2

101.1

115.9
101.9
102.5
115.9
90.3
89.0
112.4

101.4
116.2
102.7
102.3
111.3
90.3
88.6
112.4

101.4
117.3
102.7
102.2
110.7
90.2
89.3
112.5

Rubber and plastic products:
Crude rubber..........................................
Tires and tu b e s......................................
Miscellaneous rubber products..........
Plastic construction products (Dec.
1969 = 100)..........................................
U nsupported plastic film and sheeting
(Dec. 1970=100)...............................
Lam inated sheets, high pressure
(Dec. 1970= 100)...............................

99.1
107.5
117.0

110.8

119.2

99 .2
110.3
119.7

98.8
108.4
120.4

95.8

93.8

93.7

93.8

102.9

100.0

100.0

99.9

99.9

97.9

98.2

98.6

120.3
115.2

143.8
124.3
117.8
119.1

146.9
124.9
120.2
119.6

150.4
125.5
125.1
119.9

98.5

Lumber and wood products:
Lum ber....................................................
M illw ork.................................................
Plyw ood...................................................
O ther wood p roducts............................

112.8

118.1

o f L abor Statistics indexes.




121.6

Agricultural machinery and equip...
Construction machinery and equip..
Metalworking machinery and equip.
General purpose machinery and
equipm ent........................................
Special industry machinery and
equipm ent........................................
Electrical machinery and eq u ip .. . .
Miscellaneous m achinery.................

120.5

120.8

121.2

119.4
109.3
115.9

122.1

122 .6

109.3
117.9

109.5
118.3

123.1
110.0
118.8

113.9
118.2
100.6
107.1
94.2
119.8

115.5
118.2
97.9
107.4
93.4
122.1

116.0
118.3
98.1
106.9
93.3
122.3

116.7
118.3
9 8 .2
107.5
92.9
124.1

123.1 | 123.6
117.3 i 124.2
117.6 | 122.9

123.6
124.4
123.4

123.6
124.6
123.8

112.7 114.9
126.7 127.1
108.8 ! 131.2
97.9 114.1
131.9 I 131.5
121.0
125.6

114.8
127.1
131.2
113.4
131.5
125.7

116.1
127.1
131.2
112.8
131.5
125.9

114.1
119.0

122.6

117.9
123.7

118.1
123.9

112.3 j 113.1
116.9 116.7
111.3 111.7
105.6 106.5
111.7 113.0

113.5
117.4
111.7
106.4
113.9

114.0
117.4
111.7
106.7
114.4

Furniture and household durables:
H ousehold furniture...................
Commercial furniture.................
Floor coverings............................
Household appliances.................
H om e electronic e quipm ent.. . .
Other household durable goods

Nonmetallic mineral products:

Chemicals and allied products:
Industrial chem icals..............................
Prepared p a in t........................................
Paint m aterials.......................................
Drugs and pharm aceuticals.................
Fats and oils, inedible..........................
Agricultural chemicals and products.
Plastic resins and m aterials.................
O ther chemicals and p ro d u cts...........

Iron and steel....................................
Steelmill pro d u cts............................
Nonferrous m etals...........................
M etal containers..............................
H ardw are...........................................
Plumbing equipm ent.......................
H eating equipm ent..........................
Fabricated structural metal products
Miscellaneous metal pro d u cts. . . .

Machinery and equipment:

Hides, skins, leather, and products:
Hides and skins......................................
Leather.....................................................
F ootw ear.................................................
O ther leather products.........................

Pulp, paper and products, excluding
building paper and b o a rd ..............
W oodpulp..............................................
W astepaper............................................
P ap er.......................................................
Paperboard............................................
Converted paper and paperboard. . .
Building paper and b o a rd ..................

M etals and metal products:
111.1
115.2
112.3
111.5
118.3
115.2

Textile products and apparel:

N o t e . — Bureau

1971

G roup

Flat glass..............................................
Concrete ingredients.........................
Concrete products..............................
Structural clay products excluding
refractories......................................
R efractories.........................................
Asphalt roofing..................................
G ypsum pro d u cts..............................
Glass containers.................................
O ther nonmetallic m inerals.............

Transportation equipment:
M otor vehicles and equipm ent.
Railroad equipm ent.....................

117.5

Miscellaneous products:
Toys, sporting goods, small arms,
am m unition.......................................
Tobacco products................................
N otions...................................................
Photographic equipment and supplies
Other miscellaneous products...........

A 70

NATIONAL PRODUCT AND INCOME □ APRIL 1972
GROSS NATIONAL PRODUCT
(In billions o f dollars)

1929

Item

1933

Gross national product........................................
Final purchases......................................................

103.1
101.4

Personal consumption expenditures...................
D urable goods...................................................
Nondurable goods............................................

77.2
9 .2
37.7
30.3

Gross private domestic investment.....................
Fixed investment...............................................
Nonresidential................................................
Structures...................................................
Producers’ durable equipm ent..............
Residential structures..................................
N onfarm ....................................................
Change in business inventories.............

1941

1950

1967

1968

1969

1970 j 1971
1
1

1970
IV

1971
I

II

III

IV

1
55.6 124.5 284.8 793.9 864.2 929.1 974.1 1,046.8 988.4 1,020.8 1,040.01,053.4 1,072.9
57.2 120.1 278.0 785.7 857.1 921.7 971.3 1,044.5 984.7 1,017.7 1,035.4 1,054.6 1,070.4
80.6 191.0 492.1 536.2 579.6 615.8 662.1 624.7 644.9 657.4
9 .6 30.5 73.1 84.0 89.9 88.6 100.5 84.9
96.6 99.1
42.9 98.1 215.0 230.8 247.6 264.7 278.6 270.9 273.2 277.8
28.1 62.4 204.0 221.3 242.1 262.5 282.9 268.9 275.0 280.5

668.8
102.8
280.2
285.8

677.2
103.6
283.3
290.3

16.2
1.4
14.5
3.0
10.6
2.4
.9
5.0
5 .6
1.5
4 .0
.6
3.8
.5
1.7 - 1 . 6
1.8 - 1 . 4

17.9
13.4
9.5
2.9
6 .6
3.9
3.7
4 .5
4 .0

150.8
152.0
109.3
38.7
70.6
42.7
42.1
- 1 .2
-2 .0

159.4
157.0
112.6
39.0
73.6
44.4
43.8
2.4
2 .0

1.1
7 .0
5.9

.4
2.4
2 .0

1.3
5.9
4 .6

.1
66.5
66.4

68.2
68.2

4 6
60.4
65.0

services..
...............

8.5
1.3

8 .0
2.C

State and local...................................................

7 .2

6 .0

24.8
16.9
13.8
3.1
7.9

37.9 180.1 199.6 209.7 219.4 233.0 223.7 227.9 229.6
18.4 90.7 98.1 99.2 97.2 97.6 95.9 96.4 96.0
14.1 12.*
78.:
78.< 75.4 71.4
73.2 72.6 71.4
4 .3 18.4 I 20.5 7 0 7 21.9 26.2 22.7 23.7 24.6
19.5 89.4 100.8! 110.6 122.2 135.5 127.9 131.6 133.6

233.8
97.6
70.2
27.4
136.2

240.8
100.3
71.4
28.9
140.5

740.7

751.3

E xports...............................................................
Government purchases of goods
Federal.......................................

Gross national product in constant (1958)
dollars.................................................................

45.8
3.5
22.3
20.1

54.1 116.6 126.0 137.8 135.3 151.6 137.3 143.3 152.9
47.3 108.4 118.9 130.4 132.5 149.3 133.6 140.2 148.3
27.9 83.3 88.8 98.6 102.1 108.7 100.8 104.7 108.3
9 .2 28.0 30.3 34.5 36.8 38.2
37.1
36.7 38.5
18.7 55.3 58.5 64.1 65.4 70.5
63.7 68.1 69.8
19.4 25.1 30.1 31.8 30.4 40.6
32.8
35.4 40.0
18.6 24.5 29.5 31.2 29.7 40.1
32.2
35.0 39.5
6.8
8 .2
7.4
2.8
7.1
2.2
3.7
3.1
4 .6
6 .0
7.5
7.3
6.9
2.5
1.7
3.3
2.9
4.1
1.8
13.8
12.0

5.2
46.2
41.0

2.5
50.6
48.1

2.0
55.6
53.6

3.6
62.9
59.3

65.3
65.3

2.7
63.2
60.5

4 .7
66.2
61.5

!
203.6 141.5 263.7 355.3 675.2! 706.6 724.7 | 720.0 739.4 715.9 729.7 735.8

N o t e . — Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,

the Survey o f Current Business, July 1968, July 1969, July 1970, July
1971, and Supplement, Aug. 1966.

see

NATIONAL INCOME
(In billions o f dollars)

1929

1933

1941

1950

1967

1968

1969

1970

1971-°

1970

1971

Item
IV

I

II

III

m

National income.....................................................

86.8

Compensation of employees................................

51.1

29.5

64.8 154.6 467.2 514.6 565.5 601.9 641.9 609.3 627.3 638.0 645.6 656.6

Private.............................................................

50.4
45.5
.3
4 .6

29.0
23.9
.3
4.9

62.1
51.9
1.9
8.3

.7

.5

2 .7

7.8

44.2

49.7

56.0

60.5

67.7

62.1

65.9

67.0

68.3

6 9 .6

O ther labor income......................................

.1
.6

.1
.4

2 .0
.7

4 .0
3.8

21.9
22.3

24.3
25.4

27.8
28.2

29.6
30.8

34.0
33.7

30.1
32.0

33.3
32.6

33.6
33.4

34.2
34.1

35.0
34.6

Proprietors’ income...............................................
Business and professional..............................
F a rm ....................................................................

15.1
9 .0
6 .2

5.9
3.3
2 .6

17.5
11.1
6 .4

37.5
24.0
13.5

62.1
47.3
14.8

64.2
49.5
14.7

67.0
50.3
16.8

66.9
51 .C
15.8

68.3
52.1
16.3

65.9
51.5
14.4

66.4
51.6
14.8

67.2
51.9
15.2

69.2
52.3
17.0

70.5
52.5
18.1

Rental income of persons.....................................

5 .4

2 .0

3 .5

9 .4

21.1

21.2

22.6

23.3

24.3

23.7

23.8

24.2

24.5

24.6

10.5

- 1 .2

15.2

37.7

78.7

84.3

78.6

70.8

81.0

69.0

79.5

82.5

80.0

82.2

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

79.8
33.2
46.6
21.4
25.3

87.6
39.9
47.8
23.6
24.2

84.2
39.7
44.5
24.4
20.0

75.4
34.1
41.2
2 5 .C
16.2

85.5
37.8
47.6
25.5
22.1

71.6
32.3
39.2
25.0
14.3

83.0
38.3
44.8
25.6
19.2

86.9
39.1
47.8
25.4
22.4

85.8
37.5
48.2
25.7
22.5

86.2
36.4
49.8
25.3
24.5

.5

-2 .1

- 2 .5

- 5 .0

-1 .1

-3 .3

- 5 .5

-4 .4

- 2 .6

- 3 .5

-4 .4

- 5 .8

-4 .0

35.6

34.2

34.8

35.4

35.9

36.4

Government civilian....................................
Supplements to wages and salaries................
Employer contributions for social in-

40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 802.1 831.7 847.3 855.2 870.3

146.8 423.1 464.9 509.6 541.4 574.2 547.2 561.4 571.0 577.3 587.0
124.4 337.3 369.2 405.5 426.6 450.4 429.9 440.3 448.4 452.3 460.3
19.4 18.6
5.0 16.2 17.9 19.0
19.2
18.6
18.6
18.6
18.0
17.4 69.5 77.8 85.1
95.5 105.2 98.6 101.8 104.0 106.9 108.1

Corporate profits and inventory valuation
Profits before ta x .............................................
Profits after ta x .............................................
D ividends...................................................

Net interest.............................................................

4 .7

4 .1

3 .2

2.0

N o t e . — Dept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table above.




24.4

26.9

29.9

-4 .5
33.0

APRIL 1972 □ NATIONAL PRODUCT AND INCOME

A 71

RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions o f dollars)

1929

Item

1933

1941

1950

1967

1968

1969

1970

1970
IV

I

103.1
7.9

7 .0

8 .2

18.3

68.9

87.6

95.2

89.8

7.C
.6
.7

7.1
.7
.6

11.3
.5
.4

23.3
.8
1.5

70.4 78.6 85.7 92.9
3.1
3.4
3.9
3.7
- . 7 - 2 .7 -4 .1 - 4 .5

102.1
4.3
-5 .0

95.8
4.1
- 1 .6

.1

.2

1.0

1.7

-.1

IVP

111

74.5

1.4

96.2

98.7

103.0
4.3
- 4 .7

106.2
4 .4
- 6 .0

.7

.7
870.3
82.2
66.6

10.5 - 1 . 2
.2
.3

15.2
2.8

37.7
6.9

78.7
42.4

1.7

92.0

855.2

Less: Corporate profits and inventory valu­
ation adjustm ent..................................
Contributions for social insurance. . . .
Excess o f wage accruals over disburse-

1.1

93.9

9 9.0 100.2
4 .2
4 .2
-4 .3 -4 .9
.7

86.8

.7

81.1

40.3 104.2 241.1 653.6 711.1 763.7 795.9 851.1 802.1 831.7 847.3

Equals: National income......................................

Plus: Government transfer payments............
N et interest paid by government and
consum ers..............................................
D ividends...................................................

II

55.6 124.5 284.8 793.9 864.2 929.1 974.1 1,046.8 988.4 1,020.8 1,040.0 1,053.4 1,072.9

Gross national product........................................
Less: Capital consum ption allowances..........
Indirect business tax and nontax lia­
bility .......................................................
Business transfer paym ents...................
Statistical discrepancy.............................
Plus: Subsidies less current surplus o f gov-

1971

1971^

84.3
47.1

78.6
54.0

70.8
57.6

81.0
65.2

69.0
58.5

1.8

79.5
64.0

82.5
64.6

80.0
65.4

.9

1.5

2.6

14.3

48.7

56.1

62.2

75.6

90.4

80.7

83.7

92.2

92.5

93.3

2.5
5.8
.6

1.6
2.C
.7

2.2
4.4
.5

7.2
8.8
.8

23.6
21.4
3.1

26.1
23.6
3 .4

2 9 .C
24.4
3.7

31.7
25.0
3.9

31.9
25.5
4.3

32.4
25.0
4.1

31.8
25.6
4 .2

31.4
25.4
4.2

32.2
25.7
4.3

32.2
25.3
4 .4

96.0 227.6 629.3 688.9 750.3 803.6 857.0 816.7 833.5 853.4

864.6

876.7

115.2 111.6 113.8

116.0

121.7

Equals: Personal income....................................

85.9

47.0

Less: Personal tax and nontax paym ents___

2 .6

1.5

Equals: Disposable personal income.................

83.3

45.5

92.7 206.9 546.3 591.0 634.2 687.8 741.3 701.5 722.0 739.6

748.5

755.0

Less: Personal o u tlay s.......................................
Personal consum ption expenditures.
Consumer interest paym ents.............
Personal transfer payments to for­
eigners.................................................

79.1
77.2
1.5

46.5
45.8
.5

81.7 193.9 506.0 551.2 596.3 633.7 680.7 643.0 663.3 676.0
80.6 191.0 492.1 536.2 579.6 615.8 662.1 624.7 644.9 657.4
2.4 13.2 14.3 15.8 16.9
.9
17.4
17.6 17.7
17.7

687.6
668.8
17.8

696.0
677.2
17.9

.3

.2

.2

.5

.7

.8

.9

.9

.9

.9

.9

.9

1.0

.9

Equals: Personal saving......................................

4 .2

-.9

11.0

13.1

40.4

39.8

37.9

54.1

60.5

58.5

58.6

63.6

61.0

59.0

Disposable personal income in constant (1958)
dollars.................................................................. 150.6 112.2 190.3 249.6 477.5 499.0 513.5 531.5 550.6 532.5 542.7 550.5

553.2

556.1

3.3

20.7

83.0

97.9 116.2 115.9

115.8

N o t e . —D ept, o f Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table opposite.

PERSONAL INCOME
(In billions of dollars)

Item

1970

1972

1971
1971
Feb.

M ar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.p

Total personal income............................

803.6 857.0 832.4 838.3 843.0 848.6 868.6 857.7 866.1 869.9 871.2 874.9 883.9 892.0 896.9

Wage and salary disbursements...........
Commodity-producing industries. .
Manufacturing o n ly........................
Distributive industries.......................
Service industries................................
G overnm ent.........................................

541.4
200.7
158.3
129.1
96.7
114.8

574.2 560.6 564.8 567.7 572.0 573.2 572.9
205.7 201.8 203.3 204.4 206.1 206.4 205.0
160.8 158.5 159.2 159.6 161.1 161.4 160.2
138.8 135.2 136.5 137.2 138.3 138.1 138.0
105.9 102.4 103.3 103.9 105.0 105.7 106.3
123.8 121.2 121.6 122.1 122.6 123.0 123.6

579.2 579.8 581.3 584.8 594.8 602.1 605.8
205.3 206.7 207.4 208.1 211.4 213.2 214.4
160.2 161.1 162.0 162.2 165.3 165. t 167.5
140.0 140.7 140.9 141.6 144.7 146.3 147.5
107.4 107.7 108.1 108.7 109.9 111.4 112.1
126.6 124.7 124.9 126.4 128.8 131.2 131.8

O ther labor incom e................................

30.8

33.7

32.6

32.8

33.1

33.4

33.7

33.9

34.1

34.3

34.4

34.6

34.8

35.0

35.2

Proprietors’ income................................
Business and professional.................
F a rm ......................................................

66.8
51.0
15.8

68.4
52.1
16.3

66.3
51.5
14.8

66.6
51.7
14.9

66.9
51.8
15.1

67.1
51.9
15.2

67.4
52.1
15.3

68.3
52.2
16.1

69.3
52.3
17.0

70.1
52.3
17.8

70.4
52.4
18.0

70.6
52.5
18.1

70.7
52.6
18.1

70.8
52.5
18.3

71.1
52.6
18.5

R ental incom e.........................................

23.3

24.3

23.5

24.0

24.1

24.2

24.3

24.4

24.5

24.5

24.5

24.6

24.6

24.7

24.8

D ividends.................................................

25.0

25.5

25.7

25.5

25.5

25.6

25.2

25.6

25.7

25.7

25.7

25.7

24.3

25.8

25.9

Personal interest incom e.......................

64.7

67.5

66.6

66.4

66.6

66.7

66.9

67.4

68.1

68.8

68.7

68.6

68.4

68.7

68.9

Transfer paym ents..................................

79.6

94.7

87.8

89.1

89.8

90.5 109.0

96.2

96.5

97.9

97.4

97.6

98.2

98.7

99.2

28.0

31.2

30.7

30.9

30.9

31.0

31.1

31.4

31.4

31.4

31.6

32.0

33.9

34.0

Less: Personal contributions for social
insurance..........................................
Nonagricultural income..........................
Agricultural income................................

N o t e . —D ept, o f Commerce estimates. M onthly data are seasonally
adjusted totals at annual rates. See also N o t e to table opposite.




31.1

781.4 834.0 810.8 816.6 821.1 826.5 846.5 834.8 842.4 845.3 846.4 850.1 859.2 867.1 871.7
22.2 23 .0 21.5 21.7 21.9 22.1 22.2 22.9 23.7 24.6 24.7 24.7
24.8 24.9 25.2

A.72

FLOW OF FUNDS □ APRIL 1972
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions o f dollars)
1969

Transaction category, or sector

1966

1967

1968

1969

1970

1971

1970
III

IV

I

II

III

IV

I

II

III

Funds raised, by type and sector
Total funds raised
by nonfinancial sectors....................

68.5

83.5

96.9

90.4

97.5

88.4

86.8

81.4 103.7

94.6

?
3
4

U.S. G overnm ent................................
Public debt securities.....................
Budget agency issues.......................

3.5
2.3
1.2

13.0
8.9
4.1

13.4
10.3
3.1

-3 .6
- 1 .3
- 2 .4

12.8
12.9
-.1

-.7
4.9
-5 .6

1.2
4.9
-3 .7

3.0
3.5
-.5

16.0
18.1
—2 .0

12.2
11.4
.8

20.0
18.5
1.5

5
6
7
ft
9
10
11
1?
n
14
15

A ll o th e r n o n fin a n c ia l s e c to r s ..

64.9
.9
64.0
39.0
5.7
11.0
22.3
11.4
3.1
5 .7
2.1

70.5
2 .4
68.1
46.6
8 .7
15.9
22.0
11.6
3 .6
4 .7
2.1

83.5
-.7
84.2
50.9
9 .6
14.0
27.3
15.2
3 .5
6 .6
2.1

94.1
4.8
89.3
49.1
8.1
13.1
27.9
15.7
4 .8
5 .5
1.9

84.7
6.8
77.9
58.8
11.8
21.1
25.8
12.8
5 .9
5 .4
1.8

89.1
6.0
83.2
45.2
5.6
12.1
27.5
15.7
4 .8
5 .3
1.8

85.7
9.2
76.4
42.5
4.7
11.1
26.7
13.9
5.6
5 .8
1.5

78.3
5.9
72.4
45.6
8.9
15.0
21.7
10.7
4 .6
4 .8
1.5

87.7
6.0
81.7
54.6
10.2
22.4
22.0
11.1
5 .4
4 .2
1.4

16
17
18
19
20

O ther private credit....................
Bank loans n.e.c......................
Consumer cre d it......................
Open m arket p ap er.................
O th er..........................................

25.0
10.3
7.2
1.0
6.4

21.6
9 .6
4 .6
2.1
5.2

33.3
13.4
11.1
1.6
7.3

40.2
15.7
9.3
3.3
11.8

19.2
2.7
4.3
3.8
8.4

38.0
11.7
8.9
2.7
14.6

33.9
14.2
7.5
1.0
11.2

26.7
7.6
4.8
5.0
9 .4

?1
??
73
'M
?5
?6
?7
28

By b o rro w in g s e c to r ......................
Foreign..............................................
State and local governments.........

64.9
1.5
6.4
23.2
33.8
24.9
5 .5
3 .5

70.5
4.1
8.8
19.7
37.9
29.3
5 .0
3 .5

83.5
3.0
9.9
31.8
38.8
30. j
5 .8
2 .7

94.1
3.7
8.5
32.2
49.7
39.1
7.4
3 .2

84.7
2.6
12.2
21.6
48.3
38.8
6.3
3 .2

89.1
2.3
5.8
31.5
49.4
37.4
8 .7
3 .3

85.7
2.4
5.1
28.2
49.9
41.0
6 .4
2 .5

78.3
2 .6
9.4
22.8
43.4
36.9
3 .5
3 .0

D ebt capital instrum ents...........
State and local govt. s e c s ....
C orporate and fgn. b o n d s. . .
M ortgages.................................
Home mortgages..................
Other residential..................
Commercial...........................

Nonfinancial business.....................
Corporate......................................
Nonfarm noncorporate................
Farm ...............................................

110.6 112.8 173.7 167.5

1

24.6
24.7
*

2
3
4

82.4
5.4
77.1
60.0
8.9
22.2
28.9
15.2
6 .5
5 .2
2.1

90.6 113.5 128.1 142.9
9.9
15.3
17.0
9 .2
80.7 104.2 112.9 125.9
74.7 82.0 85.7 84.4
18.0
19.3 25.3
16.6
14.1
24.8
25.0 24.1
30.7
31.7 45.1
52.3
14.2 14.9 25.2 28.8
10.2
6 .9
7.1
9.8
7.5
7.5
8.8
11.0
2.1
2 .2
1.2
2 .3

5
6
7
8
9
10
11
12
13
14
15

27.0
9.0
6.1
2.2
9.8

17.0
1.9
6.2
.5
8.4

6 .0
- 7 .6
.2
7.5
5.9

41.5
22.6
13.9
2.7
2.3

16
17
18
19
20

87.7
1.7
10.4
21.5
54.2
45.2
5 .2
3 .8

82.4
2.2
9.7
24.8
45.7
33.6
8.7
3.3

90.6 113.5 128.1 142.9
4.0
4.3
6.7
7.2
16.7
18.1
19.5 25.7
17.2 23.3 40.8 41.2
50.0
60.2 63.9
76.3
39.2 47.2 49.9 59.4
8 .2
9 .4
12.7
7.7
4 .2
3.1
4 .8
4 .6

21
22
23
24
25
26
27
28

-.7
2.2
- 2 .9

22.2
4.2
4.1
2.9
10.9

45.6
45.8
-.2

27.2
13.4
9.2
-3 .7
8.3

Funds advanced directly in credit markets
Total funds raised................................
Advanced directly by—
U.S. G overnm ent............................
U.S. G ovt, credit agencies, n e t . ..
Funds advanced...........................
Less funds raised in cr. m k t....

68.5

83.5

96.9

90.4

97.5

88.4

86.8

81.4 103.7

4.9
.3
5.1
4.8

4.6
.5
-.1
-.6

4 .9
-.2
3.2
3.5

2 .5
.2
9 .0
8.8

3.2
1.2
9.9
8.7

3.7
-.1
10.5
10.6

2.3
1.5
14.1
12.5

3.9
-.7
13.7
14.4

Federal Reserve System.................
Commercial banks, n et...................
Funds advanced...........................
Less funds raised.........................

3.5
16.7
16.8
.1

4.8
36.6
36.9
.2

3.7
39.5
39.7
.2

4 .2
12.2
16.5
4 .3

5.0
31.3
29.5
- 1 .8

-.5
-.9
4.2
5.0

9.3
12.1
18.9
6.8

1.2
1.0
10.1
9.1

Private nonbank finance................
Savings institutions, n e t.............
Insurance.......................................
Finance n.e.c., n e t.......................

25.9
7.8
19.3
- 1 .3

34.4
16.8
18.7
-1 .1

34.2
14.6
22.0
-2 .5

30.1
10.4
21.8
-2 .1

38.9
14.7
24.9
-.7

25.6
6.8
20.6
- 1 .8

24.4
5.6
19.5
-.7

25.3
4 .7
23.2
- 2 .6

F oreign...............................................

- 1 .8

2.8

2 .5

1.3

10.9

5.1

-1 .1

9 .4

Private domestic nonfinancial___
Business.........................................
State and local governm ents. . .
H ouseholds....................................
Less: N et security credit............

19.1
3.6
3.4
11.9
-.2

-.2
-.2
2.1
*
2 .2

12.3
7 .4
.4
5.8
1.4

39.8
13.8
6.1
18.3
- 1 .6

7.1
- 1 .0
-3 .8
10.6
-1 .4

55.5
18.1
7.7
26.4
-3 .2

38.4
7.0
5.6
25.3
-.4

41.2
15.1
-2 .5
24.8
- 3 .8

3.6
1.6
7.1
5.5

94.6

110.6 112.8 173.7 167.5

1

3.5
.9
8.7
7.8

1.8
3.0
10.1
7.0

4.3
2 .4
.3
-2 .0

4.3
-6 .3
-5 .7
.6

2.3
-1 .5
6.5
7.9

2
3
4
5

5.5
7.7
23.3
63.6
27.4 52.1
4.1 - 1 1 . 6

5.5
37.3
28.4
- 8 .9

16.1
37.6
35.9
-1 .7

1.4
59.2
59.8
.6

7.6
44.0
44.9
.9

6
7
8
9

45.8
20.7
25.3
-.3

71.3
45.5
29.9
-4 .0

81.9
49.9
33.9
- 1 .9

59.8
35.1
27.2
-2 .6

10
11
12
13

19.6

27.5

30.1

32.1

14

- 2 .5 - 4 6 .4
- 2 .9 - 1 .8
.4
1.8
.5 - 4 6 .3
.1
.6

3.1
9.7
3.0
-5 .2
4.5

23.3
10.2
2.9
14.6
4 .4

15
16
17
18
19

110.6 112.8 173.7 167.5

1

42.4
15.3
27.1
*

42.0
18.0
24.1
*

9.5

4.9

17.9 - 2 7 . 9
12.3 - 2 8 . 5
-5 .3 - 7 .8
8.8
8.1
-2 .1
-.2

Sources of funds supplied to credit markets
Total borrowing
90.4

88.4

86.8

81.4 103.7

94.6

68.2 47.6
61.1 - 7 . 9
6.1
7.6
54.9 - 1 5 . 5
38.4 - 2 1 . 3
16.5
5 .8

44.3
5.9
8.2
-2 .3
-6 .4
4 .2

55.1
13.9
2.0
11.9
7.4
4 .4

69.2
97.1
7.3
89.9
68.2
21.7

55.5
23.2
29.6
-.6
-3 .2

38.4
14.1
27.5
-3 .7
-.4

41.2
6 .5
37.6
-6 .7
- 3 .8

2.4
- 8 .4
10.9

10.4
5.3
5.1

- .6
.5
-1 .1

2 .6
3.2
21.0
.1

1.6
3.7
18.7
6.4

3.9
2.3
18.9
18.1

68.5

83.5

96.9

2
3
4
5
6
7

Supplied directly and indirectly by
pvt. domestic nonfin. sectors:
T o ta l...................................................
D ep o sits........................................
D em and dep. and c u rre n c y ..
Time and svgs. accounts. . . .
A t commercial b a n ks. .
A t savings institutions. ..

42.8
23.7
4 .0
19.7
12.5
7 .2

51.3
51.5
12.4
39.1
22.5
16.6

60.8 44.5
48.5
4 .7
14.8
7.1
33.7 - 2 . 4
20.8 — 10.5
8.1
12.9

8
9
10
11
12

Credit m arket instr., n e t...........
U.S. Govt, securities...............
Pvt. credit market instr...........
Corporate equities...................
Less security d e b t...................

19.1
8 .5
11.4
- 1 .0
-.2

-.2
-1 .7
7.8
-4 .1
2 .2

12.3
7.7
13.4
-7 .4
1.4

39.8
15.0
2 7 .0
- 3 .8
- 1 .6

7.1
—6 .9
15.2
- 2.6
- 1 .4

13
14
15

Other sources:
Foreign funds...................................
At banks........................................
D ire c t.............................................

.7
2.5
- 1 .8

4 .6
1.7
2.8

4.3
1.8
2 .5

9 .6
8.3
1.3

16
17
18
19

Chg. in U.S. G ovt, cash balance.
U.S. Government lo a n s.................
Pvt. insur. and pension reserves..
Sources n.e.c.....................................

-.4
4.9
16.7
3.8

1.2
4 .6
17.5
4.3

-1 .1
4.9
18.5
9 .5

.4
2.5
18.7
14.7




97.5

72.0
54.1
7 .0
47.1
31.9
15.2

76.6
79.2
8.3
70.8
46.3
24.5

81.5
127.9
15.5
112.4
61.9
50.4

94.5
91.4
23.1
68.3
26.5
41.9

93.6
70.2
4 .6
65.6
31.5
34.1

2
3
4
5
6
7

17.9 - 2 7 . 9 - 2 . 5 - 4 6 . 4
- 8 . 0 - 6 . 8 -1 9 .2 - 4 9 .5
23.9 - 2 2 .1
21.5
15.4
-.1
.7 - 4 . 3 - 1 2 . 3
.1
-2 .1
-.2
.6

3.1
.8
11.6
-4 .9
4 .5

23.3
4 .7
22.7
.4
4 .4

8
9
10
11
12

10.8
1.3
9 .4

2.7
- 6 .8
9 .5

27.1
-3 .0
30.1

37.4
5.3
32.1

13
14
15

1.0
3.9
18.7
-8 .1

2.1
3.6
22.7
.7

17.4
4.3
24.2
6.1

.6
2.3
19.7
13.9

16
17
18
19

- 4 .5
.7
9.7
- 9 .4 -1 8 .9 -1 7 .8
4 .9
19.6 27.5
1.4
3.5
19.8
5.3

6.1 - 1 8 .8
1.8
4.3
22.8
25.3
2.5
10.7

APRIL 1972 □ FLOW OF FUNDS

A 73

PRINCIPAL FINANCIAL TRANSACTIONS
(Seasonally adjusted annual rates; in billions o f dollars)
1969
Transaction category, or sector

1966

1967

1968

1969

1970

1971

1970
III

IV

I

II

III

IV

I

II

III

D em and deposits and currency
1 Net incr. in banking system liability. .
U.S. G overnment deposits............
2
M oney supply ..................................
3
Domestic sectors.........................
4
H ouseholds...............................
5
Nonfinancial business.............
6
State and local governm ents.
7
Financial secto rs.....................
8
M ail flo a t..................................
9
Rest o f the w o rld ........................
10

2 .6
-.4
3 .0
3.9
3.1
.7
-.1
-.1
.3
-1 .0

14.8
1.1
13.7
13.4
9 .4
.8
- 1 .0
1.0
3.2
.3

14.8
-1 .2
16.0
15.7
11.1
1.8
.7
.9
1.2
.3

8.5
.6
7.9
7.6
5.9
-.8
3.2
.5
-1 .2
.3

10.1
2.5
7.7
7.4
4.7
-.9
1.2
1.3
1.1
.3

11.0
1.9
9.1
8.5
9.5
-4 .3
3.9
.9
- 1 .5
.6

13.2
5.1
4 .2
1.1
9.0
4.0
9.0
2.6
5.1
5.4
3.0 - 2 . 3
2.9
- .3
.8
.5
-2 .8
-.7
*
1.4

9.8
2 .0
7.8
8 .2
7.4
- 2 .7
1.0
1.2
1.3
-.4

8.9
.7
8.2
8.6
5.0
.7
1.1
1.4
.5
-.5

16.9 - 1 . 9
6.0 - 1 9 . 2
10.8
17.3
10.3
17.5
7.3
1.0
.9 - 1 . 2
3.1
2.5
1.9
2.0
3.3
6.9
- .1
.5

39.9
17.3
22.6
22.8
16.2
2 .9
1.1
-.3
2.9
-.2

6.2
.6
5.6
5.7
10.0
-1 .7
1.1
1.1
- 4 .8
-.2

1
2
3
4
5
6
7
8
9
10

67.1 113.3
41.3
61.1
12.2
9 .0
9.6
12.1
-5 .1 -1 .4
24.5 40.8
25.8
52.2

72.9
29.5
1.5
3.5
2.6
21.5
43.4

68.0
33.1
1.1
11.9
1.6
18.4
34.9

1
?,
3
4
5
6
7

Time and savings accounts
1 N et increase—Total.............................
A t commercial banks—T o ta l. . . .
Corporate business.....................
State and local governm ents. . .
F oreign..........................................
H ouseholds...................................
6
At savings institutions...................
7
Liabilities—
Savings and loan assns...........
8
M utual savings banks............
9
Credit unions...........................
10
Assets—
11
H ouseholds...............................
12
Cr. union deps. at S & L *s...
2

3
4
5

20.2
13.3
-.7
1.3
.8
11.9
7.0

40.8
23.8
2.9
2.4
1.2
17.1
17.0

33.3
20.6
1.9
3.2
-.3
15.7
12.8

- 1 .6
-9 .7
- 9 .8
- 5 .9
1.0
5.2
8.1

53.9
36.7
12.8
9.9
-1 .9
15.8
17.2

-1 5 .4
3.4
-2 1 .2 - 1 .1
- 1 1 .0 - 4 .2
- 1 0 .3 - 4 . 6
.4
5.7
«
2.4
5.7
4.5

3.6
2 .6
.8

10.6
5.1
1.2

7.5
4 .2
1.1

4.1
2 .6
1.4

11.1
4.4
1.7

2.9
1.5
1.3

7.2
- .2

16.6
.3

12.9
- .1

8.1
*

16.5
.7

5.8
-.1

16.8
11.6
.5
6.4
4.3
.5
5.2

44.3
28.5
6.1
10.3
-3 .5
15.5
15.8

87.5
65.6
32.3
13.4
-3 .2
22.5
21.9

.7
2.2
1.5

2.0
1.6
1.6

9.8
4.4
1.7

15.6
4.7
1.5

16.9
7.0
1.9

36.7
12.4
3.1

28.6
11.6
3.1

25.3
6.6
3.0

8
9
10

4 .2
.3

4.4
.8

15.2
.6

21.7
.2

24.5
1.3

50.4
1.8

41.9
1.5

34.1
.8

11
12

46.3
-2 .6
1.9
2.7
.3 43.1
.8
.4
-2 .0
.6
- 3 .6
-.5
46.3
-2 .6
«
«
-1 .8 -2 .7
-3 .9
-.2
2.0 - 2 . 6
15.8
1.7
26.3
28.7
2.2
14.7
.1
11.3
3.4
2.1
4.4
3.1
- 7 .3
2.5
11.8
.6
.8
-4 9 .5
1.9
2.7
-3 2 .7
1.7
-1 8 .7 - 3 .6

32.7
2 .4
22.2
*
7.9
.1
32.7
- 2 .8
- 2 .8
.1
7.6
29.0
-5 .2
-8 .2
3.0
-.6
-3 .7
3.1
4.7
2 .4
.4
1.8

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23

58.8
16.6
37.8
2.5
.4
1.6
58.8
4.2
3.2
2.7
14.9
6.7
33.0
- 5 .5
-6 .1
.6
.4
-.2
-.5

53.0
18.0
30.2
3.7
.2
.9
53.0
13.0
.7
2.6
7.8
1.5
25.5
.4
-.7
1.1
.9
-.1
1.5

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

15.6
5.4
5.4
2.7
2.1

20.0
-1 .4
18.8
5.2
- 2 .7

1
2
3
4
5

U.S. Government securities
1 Total net issues.....................................
2
Household savings b o n d s..............
D irect excluding savings b o n d s...
3
Budget agency issues.......................
4
Sponsored agency issues................
5
Loan participations.........................
6
7 N et acquisitions, by secto r.................
U.S.
Government (agency sec.)...
8
Sponsored credit agencies.............
9
D
irect
m arketable.......................
10
11

12

13
14
15
16
17
18
19
20

21
22

23

Federal Reserve System.................
F oreign...............................................
Commercial b a n k s ..........................
D ire c t.............................................
Agency issues................................
N onbank finance..............................
D ire c t.............................................
Agency issues...............................
Pvt. domestic nonfinancial..........
Savings bonds—H ouseholds. . .
Direct excl. savings b onds.........
Agency issues................................

8.7
.6
1.8
5.1
1.3
8 .7
1.3
1.0
.3
.6
3.5
-2 .4
- 3 .6
-3 .4
-.2
.4
-.2
.5
8.5
.6
3.3
4 .7

12.5
1.0
7.9
.1
-.6
4 .0
12.5
-.1
.9
-.9
4.8
2.1
9.3
6.3
3.0
-1 .9
-2 .2
.3
-1 .7
1.0
-3 .0
.4

16.7
5.5 21.6
.4
-.4
.3
9.9
-.9
12.6
1.5
-.4
1.3
3.2
9.1
8.7
1.7 - 1 . 9 - 1 . 3
16.7
5.5 21.6
. 1 -1 .3
-.1
-.1
-.2
1.7
-.1
-.5
1.9
.3
-.2
3.8
4 .2
5.0
- . 5 - 1 .8
9.1
3.4 - 9 . 5
9.0
2.2 - 9 . 3
5.8
1.3
-.3
3.2
2.2
-.8
3.7
.4 - 2 . 4
1.5
1.8
1.6
2.2
7.7
15.0 - 6 . 9
.4
-.4
.3
4.1
8 .7 - 1 0 .5
3.2
6.7
3.4

10.0
-.8
5.6
-.8
10.6
-4 .8
10.0
-.8
-.5
-.8
.3
-.4
2.7
- 9 .5
-7 .6
-1 .9
- 4 .7
-7 .3
2.6
23.2
-.8
18.8
5.2

13.8 17.5
.1
-.9
4.8
4 .4
-.2
2.1
12.5
14.4
- 3 .3 - 2 .6
13.8 17.5
.1
- 1 .0
1.2
2.0
.4
2.8
.8
- .8
9.2
1.1
-3 .7
8.0
-5 .2
.5
-6 .2
-.7
1.3
1.0
- .8
-.7
- . 6 -3 .2
-.2
2.6
14.1
6.5
. 1 -.9
5.0 - 2 . 7
9.1
10.1

21.6 20.1
27.0
-.2
1.7
.5
18.3
10.9
16.8
.2
1.0
1.7
7.8
5.5
7.0
- 2 .2
-.1
-.2
21.6 20.1 27.0
*
.1
-.6
4 .4
-.5
1.0
1.2
4.3
-.8
.1
.2
-.2
5.4
7.9
5.6
8 .2
4 .7
15.5
6.8
11.0
17.6
6.8
8.9
8.0
*
2.1
9.6
9.8
2.2
3.7
7.6
-.7
2.5
2 .2
2.9
1.2
- 8 .0 - 6 .8 -1 9 .2
-.2
1.7
.5
- 9 . 2 - 1 0 .8 - 1 9 . 2
1.4
3.5 - 1 . 7

Private securities
1 Total net issues, by secto r..................
2
State and local governm ents.........
N onfinancial corporations.............
3
4
Finance com panies.........................
Commercial b a n k s..........................
5
Rest o f the w o rld ............................
6
7 Vet purchases........................................
8
9
Nonfinancial corporations.............
State and local governm ents.........
10
11
Commercial b a n k s..........................
12
M utual savings banks.....................
Insurance and pension funds........
13
Finance n.e.c.....................................
14
Security brokers and d e alers...
15
Investment companies, n et........
16
Portfolio purchases.................
17
N et issues o f ow n sh ares. . . .
18
19
Rest o f the w o rld............................

18.5
5.7
11.4
.8
.1
.5
18.5
3 .2
1.0
1.1
1.9
.3
12.9
- 2 .2
.1
- 2 .4
1.4
3.7
.3

28.2
8 .7
17.0
1.0
.2
1.3
28.2
-1 .8
-.2
1.9
9.8
2.3
16.6
-.9
.2
-1 .1
1.5
2 .6
.6

23.9
9 .6
12.1
.8
.2
1.3
23.9
-1 .2
-1 .1
-.4
8.9
1.6
17.6
-3 .6
-.9
-2 .8
1.9
4 .7
2.3

27.7
8.1
16.4
1.6
.1
1.5
27.7
3 .0
5.1
2.6
.3
.6
16.8
-2 .8
.2
- 3 .0
2.7
5.7
2.1

42.3
11.8
27.0
2.5
.1
.9
42.3
8.1
1.4
.2
10.8
1.7
18.7
.1
.7
-.6
1.8
2.4
1.4

25.1 26.3
5.6
4.7
19.8
16.1
1.4
1.3
* -.1
2 .0
.5
25.1
26.3
5.2
5.3
5.5
5.0
.9
1.4
-1 .1 - 1 .7
«
.2
15.4
15.0
-1 .1 - 2 .2
2.3 - 2 . 6
- 3 .4
.3
2 .7
4.6
6.1
4.2
2.9
.7

65.0
31.3 41.0 39.3 57.7
10.2
8.9
19.3 25.3
8.9
20.2 28.9
33.4
32.8
25.7
1.3
2.3
2.8
3.8
4.5
*
*
*
.2
.9
-.4
2.0
1.3
1.4
.7
31.3 41.0 39.3 57.7 65.0
6.9
9.8
13.3 - 3 . 3
2.5
.6
2.0
1.6
1.2
6.1
.4
.
8
.6
2.8
.7
5.0
8.9
14.5
14.7 20.1
1.2
2.0
1.2
8.3
2.5
17.0 20.6
13.9 23.2
26.7
4.3
-.1
3.3
- .3 -3 .5
*
.2
5.2 - 2 . 7
1.4
- . 3 - 3 .7 - 1 .0
1.9
2.5
2.4
1.3 - 1 . 0
4.5
2.1
3.4
1.6
2.7
2.1
.2
2.1
2.3
1.0
.6
.5

Bank loans n.e.c.
1 Total net borrowing.............................
2
H ouseholds.......................................
3
4
R est o f the w o rld............................
5
Financial sectors..............................




9 .0
.4
10.1
-.2
- 1 .3

7 .5
2.1
7.7
-.2
-2 .1

15.7
3.1
10.6
-.3
2.3

17.8
2 .4
13.5
-.2
2.1

2.1
.8
2.3
-.4
-.5

11.1
.9
12.3
-1 .5
-.6

17.6
1.5
12.8
-.1
3.4

5.2
2.3
4.6
.6
-2 .3

10.3
-1 .1
10.4
-.3
1.2

5 .0 - 1 1 . 8
1.2
1.0
.9 - 6 . 7
- . 2 - 1 .9
3.0 - 4 . 1

11.1
2.7
1.8
-.2
6.9

A 74

U.S. BALANCE OF PAYMENTS □ APRIL 1972
1. U.S. BALANCE OF PAYMENTS
(In millions o f dollars)

Line

1969

C redits+> debits —

1970

1970

1971

1971P
IV

lr

IIr

IV p

III

Summary—Seasonally adjusted
1
2
3

M erchandise trade balance 1........................................................
660
2,110 - 2 ,8 7 9
142
248 -1 ,0 6 1
- 5 4 0 - 1 ,5 2 6
E xports......................................................................................
36,490 41,980 42,769
10,461
11,016
10,706
11,475
9,572
Im p o rts...................................................................................... -3 5 ,8 3 0 -3 9 ,8 7 0 -4 5 ,6 4 8 -1 0 ,3 1 9 -1 0 ,7 6 8 -1 1 ,7 6 7 -1 2 ,0 1 5 -1 1 ,0 9 8

4
5

M ilitary transactions, n e t..............................................................
Travel and transportation, n e t.....................................................

-3 ,3 4 1
- 1 ,7 8 0

-3 ,3 7 1
- 1 ,9 7 9

- 2 ,8 5 4
- 2 ,2 4 6

-7 7 0
-4 7 8

-6 6 4
-4 3 4

-6 6 7
-6 1 7

-7 2 2
-5 5 9

-8 0 1
-6 3 6

6
7
8
9

Investment income, net 2...............................................................
U.S. direct investments abroad............................................
O ther U.S. investments abroad............................................
Foreign investments in the United States.........................

5,975
7,340
3,199
- 4 ,5 6 4

6,242
7,906
3,503
- 5 ,1 6 7

7,950
9,297
3,414
-4 ,7 6 1

1,626
1,988
851
-1 ,2 1 3

1,789
2,040
864
- 1 ,1 1 5

2,176
2,416
832
- 1 ,0 7 2

1,702
2,133
842
-1 ,2 7 3

2,281
2,708
876
- 1 ,3 0 3

10

O ther services, n et............................................................................

497

588

728

150

211

175

175

168

11

Balance on goods and services 3............................................................

2,011

3,592

699

670

1,150

6

56

-5 1 4

12

Remittances, pensions, and other transfers.............................

-1 ,2 6 6

- 1 ,4 1 0

- 1 ,4 5 9

-3 5 1

-3 4 2

-3 5 5

-3 8 5

-3 7 7

13

Balance on goods, services, and remittances......................................

745

2,182

-7 6 0

319

808

-3 4 9

-3 2 9

-8 9 1

14

U.S. Government grants (excluding m ilitary)...........................

- 1 ,6 4 4

- 1 ,7 3 9

- 2 ,0 1 4

-4 8 5

-4 2 8

-4 8 3

-5 4 2

-5 6 2

-8 9 9

444

- 2 ,7 7 4

-1 6 6

380

-8 3 2

-8 7 1

- 1 ,4 5 3

-2 ,1 0 6
-8 7

- 1 ,8 3 7
244

-2 ,0 7 1
225

-4 5 0
40

-6 0 2
4

-6 7 9
102

-4 2 1
72

-3 6 9
48

-2 6 3
-1 7 4
-8 5
-5 5
7 -1 ,0 0 9 -1 ,7 9 3 - 1 ,7 9 7
-9 3 4 -1 ,3 7 0 -1 ,3 9 3 -1 ,4 0 4
160
92
-1 6
—38€
-3 3 7
-3 5 3
-3 8 8
-24S
792
559
196
582
56
-1 2 7
-2 3 4
-2 9 5
270
190
42
-4 4

-2 2 1
472
-3 5 8
120
79
914
-1 4 0
-1 4 3

15
16
17
18
19
20
21
22
23
24
25

U.S. G overnm ent capital flows excluding nonscheduled
repayments, net 4 ........................................................................
Nonscheduled repayments o f U.S. Government assets...........
U.S. Governm ent nonliquid liabilities to other than foreign
official reserve agencies..............................................................
Long-term private capital flows, n e t...........................................
U.S. direct investments a b ro a d ............................................
Foreign direct investments in the United States..............
Foreign securities....................................................................
U.S. securities other than Treasury issues.........................
O ther, reported by U.S. b a n k s............................................
O ther, reported by U.S. nonbanking concerns.................

-4 3 6
-5 3 6
263
—5C -1 ,4 5 3 —4,12?
—3,254 - 4 ,4 4 5 - 4 ,5 2 6
969
-1 9 2
832
-1 ,4 9 4
-9 4 2
—91(
3,112
2 , 19C
2,251
199
-7 9 6
477
576
45
277
- 2 ,8 7 9

- 3 ,0 3 8

- 9 ,2 8 4

-8 3 2

- 1 ,3 1 2

- 3 ,2 5 7

-3 ,1 9 1

- 1 ,5 2 3

27
28
29
30

Nonliquid short-term private capital flows, n e t.......................
Claims reported by U.S. b a n k s............................................
Claims reported by U.S. nonbanking concerns...............
Liabilities reported by U.S. nonbanking concerns..........

-6 0 2
-6 5 ?
-3 5
91

-5 4 5
- 1 ,0 1 5
—36C
830

- 2 ,5 2 9
-1 ,8 4 £
-5 7 6
-1 0 5

-1 7 5
-3 9 6
-1 7 1
392

-3 8 1
—7C
-1 2 5
-1 8 6

-4 0 9
-1 8 6
—13S
—85

- 1 ,0 0 8
-9 5 4
-1 2 9
75

-7 3 1
-6 3 8
-1 8 4
91

31
32

Allocations o f special drawing rights (SD R ’s )........................
Errors and omissions, n e t.............................................................

- 2 ,6 0 3

717
867
- 1 ,1 0 4 -1 0 ,8 7 8

216
-2 3 3

180
- 1 ,0 1 2

179
-2 ,3 1 3

179
-5 ,2 8 3

179
- 2 ,2 7 0

33

N et liquidity balance................................................................................

- 6 ,0 8 4

-3 ,8 2 1 -2 1 ,9 7 3

- 1 ,0 2 4

- 2 ,5 2 5

- 5 ,8 0 0

- 9 ,3 0 3

- 4 ,3 4 5

34
35
36
37
38
39
40
41

Liquid private capital flows, n e t...................................................
Liquid claim s............................................................................
Reported by U.S. banks................................................
Reported by U.S. nonbanking concerns...................
Liquid liabilities.......................................................................
To foreign commercial b an k s......................................
To international and regional organizations............
To other foreigners.........................................................

8,786
124
-2 0 9
33:
8,662
9,166
-6 :
-4 4 1

- 6 ,0 0 0
242
-1 1 9
361
- 6 ,2 4 2
- 6 ,5 0 7
179
86

- 7 ,7 9 4 - 2 ,4 5 4
-1 ,0 8 9
157
—58C
-7 9
—509
236
—6,705 -2 ,6 1 1
- 6 ,9 0 2 -2 ,8 8 8
675
79
-4 7 8
198

- 3 ,0 2 5
—31(
-8 5
-2 2 5
- 2 ,7 1 5
- 3 ,0 6 7
28C
72

53
86
31
55
-3 3
-8 5
19S
-1 4 6

- 2 ,8 8 2
-5 5 7
-4 0 7
—15(
- 2 ,3 2 5
- 2 ,1 1 2
156
-3 6 9

- 1 ,9 4 0
-3 0 8
-1 1 9
-1 8 9
- 1 ,6 3 2
- 1 ,6 3 8
41
-3 5

42

2,702

-9 ,8 2 1 -2 9 ,7 6 7

-5 ,7 4 7 -1 2 ,1 8 5

- 6 ,2 8 5

-1 6 2

535

341

77

-8

-9

366

45

Official reserve transactions balance....................................................
Financed by changes in—
Nonliquid liabilities to foreign official reserve agencies
reported by U.S. G overnm ent..................................................
N onliquid liabilities to foreign official agencies reported
by U.S. b a n k s ..............................................................................
Liquid liabilities to foreign official agencies.............................

-8 3 6
-5 1 7

—81C
7,619

-5 3 9
27,617

-1 8 8
2,765

-2 0 1
5,077

—16C
5,256

-1 7 3
11,173

-5
6,111

46
47
48
49
50

U.S. official reserve assets, n e t.....................................................
G o ld ...........................................................................................
SD R ’s ........................................................................................
Convertible currencies...........................................................
Gold tranche position in IM F .............................................

- 1 ,1 8 7
-9 6 7

2,477
787
-8 5 1
2,152
389

2,348
866
—24S
381
1,350

824
422
-7 6
469
9

682
109
-5 5
373
255

659
456
17
-6 6
252

1,194
30C
-2 9
72
851

-1 8 7
1
-1 8 2
2
-8

26

43
44

51
52
53

M emoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14).......................................................................
Reinvested earnings o f foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20).............................
Reinvested earnings o f U.S. incorporated affiliates of
foreign firms (excluded from lines 9 and 21)........................

Fo r notes see end o f table.




814
-1 ,0 3 4

-3 ,4 7 8

729

- 5 ,5 5 0

169

-8

188

159

129

253

756

613

2,532

2,885

( 5)

( 5)

( 5)

( 5)

( 5)

( 5)

431

434

( 5)

( 5)

( 5)

( 5)

( 5)

( 5)

APRIL 1972 o U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE
1.

A 75

U.S. BALANCE OF PAYMENTS-Continued
(In millions o f dollars)

1969

Credits + , debits —

1970

1971^

1971

1970
IV

III

IV p

- 5 ,9 7 9
- 5 ,9 2 6

- 9 ,4 8 2
- 1 2 ,3 6 4

- 4 ,5 2 4
- 6 ,4 6 4

I '­

ll'-

- 1 ,2 4 0
- 3 ,6 9 4

- 2 ,7 0 5
- 5 ,7 3 0

|

Balances excluding allocations o f SD R ’s—Seasonally adjusted
N et liquidity balance............................................................................
Official reserve transactions balance.................................................

- 6 ,0 8 4
2,702

-4 ,6 8 8
-1 0 ,6 8 8

-2 2 ,6 9 0
-3 0 ,4 8 4

Balances not seasonally adjusted
Balance on goods and services (line 11)..........................................
Balance on goods, services, and remittances (line 13).................
Balance on current account (line 15)................................................
Balance on current account and long-term capital 4 (line 2 6 )...
Balances including allocations o f SD R ’s :
Net liquidity (line 33)...................................................................
Balances excluding allocations o f SD R ’s :
Net liquidity...................................................................................
Official reserve transactions........................................................

2,011
745
-8 9 9
- 2 ,8 7 9

3,592
2,182
444
-3 ,0 3 8

699
-7 6 0
- 2 ,7 7 4
- 9 ,2 8 4

1,349
1,002
552
706

1,513
1,188
732
- 1 ,2 6 2

228
-1 4 0
-6 7 0
- 3 ,6 1 3

-1 ,2 9 1
- 1 ,6 8 3
- 2 ,1 8 4
- 4 ,4 6 8

250
-1 2 4
-6 5 1
61

- 6 ,0 8 4
2,702

-3 ,8 2 1
-9 ,8 2 1

-2 1 ,9 7 3
-2 9 ,7 6 7

-1 5 2
- 3 ,1 7 4

-1 ,8 4 7
- 4 ,7 1 8

- 6 ,5 9 8
- 6 ,4 6 2

-1 0 ,0 8 3
-1 2 ,7 0 4

-3 ,4 4 5
-5 ,8 8 3

- 6 ,0 8 4
2,702

- 4 ,6 8 8
-1 0 ,6 8 8

-2 2 ,6 9 0
-3 0 ,4 8 4

-1 5 2
- 3 ,1 7 4

- 2 ,5 6 4
-5 ,4 3 5

- 6 ,5 9 8
- 6 ,4 6 2

-1 0 ,0 8 3
-1 2 ,7 0 4

-3 ,4 4 5
-5 ,8 8 3

1 Adjusted to balance o f payments basis; excludes transfers under
military grants, exports under U.S. m ilitary agency sales contracts and
imports o f 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 o f goods and services in national income and
product accounts o f the U nited States.
4 Includes some short-term U.S. Govt, assets.
5 N ot available.
N o t e . — D ata are from U.S. D epartm ent o f Commerce, Office o f Busi­
ness Economics. Details may not add to totals because o f rounding.

2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions o f dollars)
Exports 1

Im ports 2

Trade balance

Period
1969

1970

1971

1972

1969

1970

1971

1972

M onth:
J a n ...
F eb..
M ar..
A pr..
M ay.
June.
July.
Aug..
Sept..
O c t..
Nov..
D ec..

3 2,161
3 2,266
33,188
33,318
3 3,268
33,179
3,182
3,366
3.341
3.342
3,398
3,280

3,406
3,547
3,376
3,409
3,661
3,730
3,699
3,592
3,553
3,689
3,499
3,570

3,733
3,691
3,815
3,521
3,783
3,661
3,493
3,678
4,511
2,710
3,160
3,859

4,221
3,806

3 2,002
3 2,672
3 2,982
33,183
3 3,257
33,152
3,074
3,163
3.078
3,192
3,180
3.078

3,223
3,278
3,218
3,263
3,338
3,266
3,255
3,346
3.428
3,501
3.428
3,404

3,683
3,550
3,565
3,754
3,983
4,019
3,790
3,934
4,245
3,531
3,387
4,132

4,540
4,403

Quarter
I ___
1 1 ...
111...
I V ...

7,615
9,765
9,889
10,020

10,328
10,800
10,845
10,758

11,239
10,965
11,681
9,728

7,655
9,591
9,315
9,450

9,719
9,867
10,029
10,333

Year4 . .

37,332

42,662

43,555

36,043

39,963

1 Exports o f domestic and foreign merchandise; excludes D ept, of
Defense shipments o f grant-aid military equipment and supplies under
M utual Security Program.
2 General imports including im ports for immediate consumption plus
entries into bonded warehouses.




1969

1970

1971

1972

-3 1 9
-5 9 8

159
-4 0 6
206
135
11
27
108
203
263
150
218
202

183
269
158
146
323
465
444
246
125
188
71
166

50
141
250
-2 3 2
-2 0 1
-3 5 8
-2 9 7
-2 5 6
265
-8 2 1
-2 2 7
-2 7 4

10,798
11,755
11,969
11,051

-4 0
174
574
570

609
933
816
425

441
-7 9 0
-2 8 8
-1 ,3 2 3

45,602

1,289

2,699

- 2 ,0 4 7

3 Significantly affected by strikes.
4 Sum o f unadjusted figures.
N o t e . — Bureau o f the Census data. Details may not add to totals be­
cause o f rounding.

A 76

U.S. GOLD TRANSACTIONS □ APRIL 1972
3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES
AND INTERNATIONAL ORGANIZATIONS
(N et sales ( —) o r net acquisitions; in millions o f dollars at $35 per fine troy ounce)
1970

Area and country

1963

1965

1964

1966

1967

1968

1969

1970

IV
W estern Europe:
-8 2
-5 1 8

-1 3 0
329
1
-3 9 9

-1 0 0
-8 3
-8 8 4

-6

-3 5

-4 9

- 8 8 —1,299

-6 5 9
200

150

50

-3 9
-3
7

_ j

-2 5
*

-6

11

17

-4 1

-1 0

-4
-5 6
-1 1

Latin American republics:
—30
72
-1 1
32

54
10
-9
56

-5 8
600

-3 0

-5 0

-5 0

16

-4 7

-2 9

-1 3

-2 1

15

-6

-2 2

-6 6 9

969

-2 0 4

-7 9 6

-1 8 0

-8 5

-4 4 8

-2 6 3

-2 5
*

-2 8
-2 3
-1

-4 0

-2 9

-8 0

-5

-6 6

*

-4

•

9

-6 5

-5 4

-1 3 1

-5

-1 1 1

•

-4

*

-2 1

-4 2

-1

-3 6 6

-3 6

—7

-1 6

-2 2

3 —68

-1

2
-5 0
51
-5 0

-1 1 9

-2 2

« -2 2 5

-2 5

-9 8 0

-4 4

- 3 6 -1 ,5 4 7

-1 9 1

200
11

-1 4

-3 9 2

-1 2 9

-2 5

-8 6

- 3 6 -1 ,3 2 2

110
-4 7 3

-5 0
-8 3 5

-1 4

-3 9 2

-1 2 9

-3 0
-8 7 9

-2 4

-6

325
500
41
-7 6

-2
80

3

-1 3

20

110
-2 8 2

IV

-5 2
-2 0 9
-1 9

12

25 ,

III

-2
-8 5

-9 5
-3 4
9
-5 0
-8 1
-7 5

*

II

-2
-6 0

■
■

-1 1

-2 5
—601

i
1 aCs\

A sia:

25
29
-2 5
-1 3

I

4

-5 5
-4 0
-4 0 5
-225
-1
200
-6 0
-3 2
-8 1
618

-2
-8 0
-3 5
-1 8 0
-5 0
150

1971

1971

-6 0 8 -1 ,0 3 1 -1 ,1 1 8

-1 7 5

-2 5
-7 5

-2 3
-2 3

-1 1 9

-4

-3 5
-1 0
-2

11
-9

2 -9 1

-3 0
39

-7 i

21

42

-2 1 3

-3 8

-1 9 7

-1 5

-8 1

-6

-7 5

-1

-4

4 —631

-8 4 5

4 —563

-1 0 2

-4 4 5

40

-1
957

-8

-3 5
-1

-1 0
-1

-1

21

-3 0
-1

10

-3 2

-2 9 6

-3

10

—156

-2 2

4142

-7

-1 1

-4

-4 3 1 - 1 ,0 0 9 -1 ,1 2 1

967

-7 8 7

-8 6 7

-4 2 2

-1 0 9

-4 5 7

-3 0 0

177

22

1 Includes purchase from D enm ark o f $25 million.
2 Includes purchase from K uw ait o f $25 million.
3 Includes sales to Algeria o f $150 million in 1967 and $50 million in
1968.
4 D ata for IM F include the U.S. paym ent o f $385 million increase in
its gold subscription to the IM F and gold sold by the IM F to the United
States in mitigation o f U.S. sales to other countries making gold payments
to the IM F. The country d ata include U.S. gold sales to various countries
in connection with the IM F quota payments. Such U.S. sales to countries
and resales to the United States by the IM F total $548 million each.

-1

*

*
-1

-1

5 Includes IM F gold sales to and purchases from the United States,
U.S. paym ent o f increases in its gold subscription to IM F, gold deposits
by the IM F (see note 1 (b) to Table 4), and w ithdrawal o f deposits. The
first withdrawal, amounting to $17 million, was made in June 1968.
IM F sold to the United States a total o f $800 million o f gold ($200
million in 1956, and $300 million in 1959 and in 1960) with the right of
repurchase; proceeds from these sales invested by IM F in U.S. Govt,
securities. In Sept. 1970 IM F repurchased $400 million.
6 Payment to the IM F o f $259 million increase in U.S. gold subscription
less gold deposits by the IM F.

Notes to Table 5 on opposite page:
1 Represents net IM F sales o f gold to acquire U.S. dollars for use in
IM F operations. D oes not include transactions in gold relating to gold
deposit or gold investment (see Table 6).
2 Positive figures represent purchases from the IM F o f currencies of
other members for equivalent am ounts o f dollars; negative figures repre­
sent repurchase o f dollars, including dollars derived from charges on
purchases and from other net dollar income o f the IM F. The United
States has a commitment to repurchase within 3 to 5 years, but only to
the extent th at the holdings o f dollars o f the IM F exceed 75 per cent of
the U.S. quota. Purchases o f 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 o f gold to the IM F.




4 Represents the U.S. gold tranche position in the IM F (the U.S.
quota minus the holdings o f dollars o f the. IM F), which is the am ount
that the U nited States could purchase in foreign currencies automatically
if needed. U nder appropriate conditions, the United States could pur­
chase additional am ounts equal to its quota.
s Includes $259 million gold subscription to the IM F in June 1965 for
a U.S. quota increase, which became effective on Feb. 23, 1966. In figures
published by the IM F from June 1965 through Jan. 1966, this gold sub­
scription was included in the U.S. gold stock and excluded from the
reserve position.
6 Includes $30 million of special draw ing rights.
N o t e . —The initial U.S. quota in the IM F was $2,750 million. The U.S.
quota was increased to $4,125 million in 1959, to $5,160 million in Feb.
1966, and to $6,700 million in Dec. 1970. U nder the Articles o f Agreement,
subscription payments equal to the quota have been made 25 per cent in
gold and 75 per cent in dollars.

APRIL 1972 □ U.S. RESERVE ASSETS; POSITION IN THE IMF

A 77

4. U.S. RESERVE ASSETS
(In millions of dollars)
Gold sto ck 1
End of
year

Total

1 9 5 8 ...
1959.. .
1960. . .
1961. . .
1 9 6 2 ...
1 9 6 3 ...
1964. . .
1965. . .

Con­
vertible
foreign
curren­
cies

Gold sto ck 1

Reserve
position
in
IM F 3

Total 2

Treasury

22,540
21,504
19,359

20,582
19,507
17,804

20,534
19,456
17,767

18,753
17,220
16,843
16,672
15,450

16,947
16,057
15,596
15,471
613,806

16,889
15,978
15,513
15,388
613,733

116
99
212
432
781

1,690
1,064
1,035
769
6 863

14,882
1 9 6 6 ...
1 9 6 7 ...
14,830
15,710
1 9 6 8 ...
1 9 6 9 ... 7 16,964
1970.. .
14,487
1 9 7 1 ... 812,167

13,235
12,065
10,892
11,859
11,072
10,206

13,159
11,982
10.367
10.367
10,732
10,132

1,321
2,345
3,528
7 2,781
629
8 276

326
420
1,290
2,324
1,935
585

SD R ’s 4

End of
month

1,958
1,997
1,555

851
1,100

1 Includes (a) gold sold to the United States by the International M on­
etary Fund with the right o f repurchase, and (b) gold deposited by the
IM F to mitigate the impact on the U.S. gold stock o f foreign purchases
for the purpose o f making gold subscriptions to the IM F 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 equiva­
lent to its reserve position in the IM F autom atically if needed. U nder ap­
propriate conditions the United States could purchase additional amounts
equal to the U.S. quota. See Table 5.
4 Includes allocations by the IM F o f Special Drawing Rights as follows:
(in millions o f dollars) 867 on Jan. 1,1970; 717 on Jan. 1, 1971; and 710 on
Jan. 1, 1972; plus net transactions in SDRs.
5 F or holdings o f F.R. Banks only, see pp. A-12 and A-13.

Total

Con­
vertible
foreign
curren­
cies5

Reserve
position
in
IM F 3

SD R’s 4

T o tal2

Treasury

1971
M ar.. . .
14,342
A pr.. ..
14,307
M ay . . .
13,811
J u n e ...
13,504
J u ly ....
13,283
Aug.. . .
12,128
Sept__
12,131
O c t .. . .
12,146
N o v ... .
12,131
D ec.. . . 812,167

10,963
10,925
10,568
10,507
10,453
10,209
10,207
10,207
10,206
10,206

10.732
10.732
10.332
10.332
10,332
10,132
10,132
10,132
10.132
10.132

256
257
318
322
250
248
250
259
243
8 276

1,680
1,682
1,678
1,428
1,433
574
577
580
582
585

1.443
1.443
1.247
1.247
1,147
1,097
1,097
1,100
1,100
1,100

1972
J a n .. . .
F e b .. . .
M a r ....

10,206
9,662
9,662

10,132
9,588
9,588

276
276
212

587
582
586

1,810
1,810
1,810

12,879
12,330
12,270

6 Reserve position includes, and gold stock excludes, $259 million gold
subscription to the IM F in June 1965 for a U.S. quota increase which
became effective on Feb. 23, 1966. In figures published by the IM F from
June 1965 through Jan. 1966, this gold subscription was included in the
U.S. gold stock and excluded from the reserve position.
7 Includes gain of $67 million resulting from revaluation o f the German
mark in Oct. 1969, o f which $13 million represents gain on m ark holdings
at time o f revaluation.
8 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect m arket exchange rates as o f Dec. 31, 1971.
N ote.—See Table 23 for gold held under earm ark at F.R . Banks for
foreign and international accounts. G old under earm ark is not included
in the gold stock o f the U nited States.

5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND
(In m illions o f dollars)
Transactions affecting IM F holdings o f dollars
(during period)
U.S. transactions with IM F

Transactions by
other countries
with IM F

Period
Payments
of
subscrip­
tions in
dollars
1946— 1957.
1958— 1963.
1964— 1966.
1967.
1968.
1969.
1970.
1971 .
1971—M ar..
A p r..
M ay.
June.
J u ly ..
A ug..
Sept..
O c t...
Nov..
D ec..
1972—J an ...
F eb..
M a r.,
F or notes see opposite page.




Net
gold
sales
by IM F 1

2,063
1,031
776

600
150

1,155

22
«712

Transac­
tions in
foreign
curren­
cies 2

IM F holdings
of dollars
(end of period)

IM F net
income

Purchases
of
dollars3

R e­
purchases
in
dollars

Per cent
of
U.S.
quota

Total
change

U.S.
reserve
position
in IM F
(end of
period) 4

1.640

-45
60
45

-2,670
-1,666
-7 2 3

827
2,740
6

775
2,315
1 ,744

775
3,090
4,834

28
75
94

1,975
1,035
5326

150
1,362

20
20
19
25
-28

-1 1 4
-8 0 6
-1,343
-8 5 4
-2 4

268
741
40

-9 4
-8 7 0
-1 ,0 3 4
1,929
1,350

4,740
3,870
2,836
4,765
6.115

92
75
55
71
91

420
1,290
2,324
1,935
585

20
-2
4
250
-5
859
-3
-3
-2
-3

5,020
5,018
5,022
5,272
5,267
6,126
6,123
6,120
6,118
6.115

75
75
75
79
79
91
91
91
91
91

1,680
1,682
1,678
1,428
1,433
574
577
580
582
585

-2
5
-4

6.113
6,118
6.114

91
91
91

587
582
586

250
862

*
-3
-2
~1
-5
-3
-3
-3
-2
-3
-2
5
-4

20
1
7
1

A 78

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
6. U.S. LIQUID LIABILITIES TO FOREIGNERS
(In millions o f dollars)
Liabilities to Intl.
M o n eta ry F u n d arising
fro m gold tra n sa ctio n s

L iabilities to foreign co u n tries
O fficial in stitu tio n s 3

E nd
of
period

T otal
T o tal

G old
de­
p o sit 1

G old
invest­
m ent 2

T otal

1957
1958
1959

i 15,825
i 16,845
19,428

200
200

200
200

500

500

1960 8

/2 0 ,9 9 4
\2 1 ,027

800
800

800
800

11,078
11,088

1961 8

/2 2 ,8 5 3
122,936

800
800

800
800

1962 8

/2 4 ,0 6 8
124,068

800
800

1963

/26,361
126,322

1964 8

(28,951
129,002

S h o rt­
te rm
liab il­
ities re ­
p o rte d
by
b an k s
in U .S.

B anks an d o th e r foreigners

N on­
m a rk e t­
able
M a r k e t­
able
co n v ert­
U.S.
ible
U.S.
G o v t,
T re as­
bonds
and
ury
notes 4
bonds
an d
notes

7 ,9 1 7
8,6 6 5
9 ,1 5 4

Liabilities to n o n ­
m o n e tary inti, and
reg io n al o rg an izatio n s '

S h o rt­
term
liabil­
ities re­
p o rte d
by
b an k s
in U.S.

S h o rt­
M a rk e t­
term
ab le
liabil­
U .S.
ities re­
G
ovt,
p o rted
bonds
by
a
nd
b an k s
in U .S. 6 n o te s 4

M a rk e t­
able
U.S.
G o v t,
bonds
and
n o tes 4

966

7 ,618

5 ,7 2 4
5 ,9 5 0
7 ,0 7 7

541

1,190

542
552
530

660

10,212
10,212

866

7,591
7 ,5 9 8

7 .0 4 8
7 .0 4 8

543
550

1,525
1,541

750
750

775
791

11.830
11.830

10.940
10.940

890

8 ,275
8 ,3 5 7

7 ,7 5 9
7,841

516
516

1.948
1.949

703
704

1 .245
1 .245

800
800

12,748
12,714

11,997
11,963

751
751

8 .3 5 9
8 .3 5 9

,911
,911

448
448

2,161
2 ,1 9 5

1,2 5 0
1 ,284

911
911

800
800

800
800

14,387
14,353

12.467
12.467

1,217
1,183

703
703

9 ,2 1 4
9 ,2 0 4

8.8 6 3
8.8 6 3

351
341

1 ,960
1,965

800
800

800
800

15,428
15,424

13,224
13,220

1.125
1.125

I ,079
1,079

11,001
11,056

10,625
10,680

376
376

1 ,722
1 ,722

818
818

904
904

876

1 ,1 5 2
1,1 5 7

34

800

15,372

13,066

1,105

1,201

11,478

11,006

472

1 ,431

679

752

1966 8

f29,904
\2 9 ,7 7 9

1,011
1 ,011

211
211

800
800

13,600
13,655

12,484
12,539

860
860

256
256

14,387
14,208

13,859
13,680

528
528

906
905

581
580

325
325

1967 8

/3 3 ,271
\3 3 ,119

1.033
1.033

233
233

800
800

15,653
15,646

14,034
14.027

908
908

711
711

15,894
15,763

15,336
15,205

558
558

691
677

487
473

204
204

1968 8..........

/ 3 3 ,828
\3 3 ,6 1 4

1.030
1.030

230
230

800
800

12,548
12,481

11 ,318
11,318

529
462

701
701

19,525
19,381

18.916
18.916

609
465

725
722

683
683

42
39

1969 8

/ 4 1 ,735
\4 1 ,8 9 4

1.019
1.019

219
219

800
800

11,955
11,978

11,054
11,077

346
346

9 555
9 555

2 8 ,1 0 2
2 8 ,2 3 4

27,5 7 7
27,7 0 9

525
525

659
663

609
613

50
50

1970— D ec.8 /43,291
143,242

566
566

166
166

400
400

20,068
20,057

19.333
19.333

306
295

429
429

2 1 ,813
2 1 ,773

21,1 6 6
21,2 0 8

647
565

844
846

820
820

24
26

1971 —J a n ..
4 3 ,666
F eb..
44,063
M ar.
45,483
A pr.
4 7 ,676
M ay
5 1 ,8 2 0
June
51,401
July
53,295
Aug.
5 9 ,9 1 4
6 0 ,770
Sept.
O ct.
62,089
N ov.
62,483
D ec. i o /6 4 ,1 6 6
164,212

559
559
559
548
548
548
544
544
544
544
544
544
544

159
159
159
148
148
148
144
144
144
144
144
144
144

400
400
400
400
400
400
400
400
400
400
400
400
400

20,491
22,3 2 0
24,8 4 0
27,252
32,090
30,639
32,952
40,671
42,1 5 0
43,3 9 0
45,068
4 7 ,6 9 4
47,049

19,775
21,5 9 9
24,1 1 9
26,531
31,346
26,8 0 8
26,8 6 8
34,016
35,081
36,063
37,266
39,679
39,001

287
292
292
292
292
379
632
870
1 ,015
1,272
1,747
1.955
1.955

429
429
429
429
452
3 .4 5 2
5 .4 5 2
5,7 8 5
6 .0 5 4
6 .0 5 5
6 .0 5 5
6 ,0 6 0
6 .0 9 3

21,5 4 8
20,191
18,958
18,587
17,845
18,890
18,409
17,202
16,596
16,722
15,406
14,4 0 0
15,091

20.9 3 6
19,582
18,360
17,984
17,276
18,317
17,830
16,659
16,081
16,212
14,925
13,953
14,644

612
609
598
603
569
573
579
543
515
510
481
447
447

1 ,068
993
1,126
1,289
1,337
1 ,324
1 ,390
1,497
1 ,480
1 ,433
1,465
1.528
1.528

1,043
951
985
1,148
1 ,195
1,181
1 ,247
1 ,343
1,325
1,278
1 ,310
1 .372
1 .372

25
42
141
141
142
143
143
154
155
155
155
156
156

1972— Jan.*>

544

400

4 7 ,920

39,566

2 ,2 6 0

6 .0 9 4

15,327

14.937

390

1,680

1,523

57

1% 5

29,115

65,471

1 R epresents liability on gold deposited by th e In te rn atio n a l M on etary
F u nd to m itigate the im pact on th e U .S. gold stock o f foreign purchases
fo r the p u rp o se o f m aking gold subscriptions to th e IM F u n d er q u o ta in­
creases.
2 U .S. G o v t, o bligations at co st value an d funds aw aiting investm ent
o b ta in ed fro m proceeds o f sales o f gold by the IM F to the U nited States
to acq u ire incom e-earning assets. U p o n te rm in a tio n o f investm ent, the
sam e q u an tity o f gold can be reacquired by the IM F .
3 Includes B ank for In te rn a tio n a l S ettlem ents and E uropean F un d .
4 D erived by applying re p o rte d tra n sa ctio n s to b enchm ark d a ta ;
b reak d o w n o f tra n sa ctio n s by type o f h o ld e r estim ated for 1960-63.
Includes securities issued by c o rp o ratio n s an d o th e r agencies o f th e U.S.
G ovt, th a t are g u aran teed by the U nited States.
5 P rincipally th e In te rn a tio n a l B ank for R econstruction and D evelop­
m ent an d th e In ter-A m erican D evelopm ent Bank.
6 Includes difference between co st value an d face value o f securities in
I M F gold investm ent account. Liabilities d a ta reported to the T reasury
include the face value o f these securities, b u t in this table the cost value o f
th e securities is included u n d er “ G old investm ent.” T he difference, which
a m o u n ted to $14 m illion at the end o f 1971, is included in this colum n.




7 Includes to ta l foreign hold in g s o f U.S. G o v t, b o n d s and notes, fo r
w hich b reak d o w n by type o f h o ld e r is n o t available.
8 D a ta o n th e tw o lines show n fo r this date differ because o f changes in
rep o rtin g coverage. F igures o n th e first line are co m p arab le w ith th o se
show n fo r th e p receding d a te ; figures o n th e second line are co m p arab le
w ith th o se show n fo r th e follow ing dale.
9 Includes S I7 m illion increase in d o lla r value o f foreign cu rren cy
liab ilities resu ltin g fro m rev alu atio n o f th e G erm an m a rk in O ct. 1969.
10 D a ta on second line differ fro m th o se o n first line because certain
accounts previously classified as “ Official in stitu tio n s” are included in
“ B anks” and a n u m b e r o f rep o rtin g b an k s are included in th e series fo r
th e first tim e.
N o t e . — Based o n T reasu ry D ep t, d a ta an d on d a ta rep o rted to the
T reasu ry D ep t, by b an k s and b ro k ers in th e U n ited States. D a ta co rresp o n d
to statistics follow ing in this sectio n , except fo r m in o r ro u n d in g differences.
T ab le excludes IM F “ holdings o f d o llars,” and holdings o f U .S. T reasu ry
letters o f cred it and n o n -negotiable, non-in terest-b earin g special U nited
S tates n otes held by o th e r in tern atio n al an d regional organizations.

APRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 79

7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA
(Amounts outstanding; in millions o f dollars)
Total
foreign
countries

End o f period

1967............
19683...........
1969 3 .........
1970 3 ........
1971—

J a n ...
Feb..
M ar..
A pr..
M ay.
June.
Ju ly ..
Aug..
Sept..
O ct...
N ov..
D ec.5

Western
Europe 1

C anada

Latin
American
republics

Asia

Africa

O ther
countries 2

15,646
' 12,548
12,481
’411,955
411,978
/20,068
\20,057

9,872
7,009
7,001
5.823
5.823
13,021
13,016

996
533
532
495
495
662
662

1,131
1.354
1.354
1,679
1,702
1.562
1.562

3,145
3,168
3,122
3.190
3.190
4,060
4,055

249
259
248
546
546
407
407

253
225
224
222
222
356
355

20,491
22,320
24,840
27,252
32,090
30,639
32,952
40,671
42,150
43,390
45,068
/47,694
\47,049

13,680
15,374
17,151
19,119
22,720
20,676
22,447
25,460
26,035
26,550
27,554
29,412
29,451

678
727
801
818
865
843
921
1,185
1,173
1,241
1,345
1.340
1.340

1.388
1.389
1,236
1,244
1,213
1,262
1,286
1,348
1,229
1,298
1,275
1,361
1,376

4,041
4,162
4,997
5,285
6,395
6,895
7,252
11,545
12,631
13,235
13,776
14,300
13,602

381
325
242
257
286
271
285
312
296
276
248
415
415

323
343
413
529
611
692
761
821
786
790
870
866
865

47,920

29,552

1,334

1,351

14,219

426

1,038

1972—Jan.*

1 Includes Bank for International Settlements and European Fund.
2 Includes countries in Oceania and Eastern Europe, and Western Euro­
pean dependencies in Latin America.
3 See note 8 to Table 6.
4 Includes $17 million increase in dollar value o f foreign currency
liabilities resulting from revaluation o f the G erm an m ark in Oct. 1969.
5 D ata on second line differ from those on the first line because certain

accounts previously classified as “ Official institutions” are included in
“ Banks” and a num ber o f reporting banks are included in the series for
the first time.
N o t e . — D ata represent short-term liabilities to the official institutions
o f foreign countries, as reported by banks in the U nited States, and foreign
official holdings o f marketable and convertible nonm arketable U.S. Govt,
securities with an original maturity o f more than 1 year.

8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
To nonm onetary international
and regional organizations 6

To all foreigners
Payable in dollars
End o f period
Deposits

T o ta l1
Total

Demand

U.S.
Treasury
bills and
certifi­
Time 2
cates 3

Other
short­
term
liab.4

Payable
in
foreign

IM F
gold
invest­
m ent5

D eposits
Total
Demand

rencies

U.S.
Treasury
bills and
Tim e2 certifi­
cates

Other
shortlia b .4

1969................................ 40,199
19707.............................. (41,719
\41,761

39,770
41,351
41,393

20,460
15,785
15,795

6,959
5,924
5,961

5,015
14,123
14,123

7,336
5,519
5,514

429
368
368

800
400
400

613
820
820

62
69
69

83
159
159

244
211
211

223
381
381

1971

Jan ....................... 42,154
Feb...................... 42,532
M ar..................... 43,864
A pr...................... 46,063
M ay.................... 50,217
Ju n e .................... 46,706
Ju ly ..................... 46,345
Aug..................... 52,418
Sept..................... 52,887
O ct...................... 53,953
N ov..................... 53,901
/55,404
D ec.8.................. 155,417

41,776
42,122
43,212
45,426
49,598
46,046
45,693
51,768
52,490
53,573
53,531
55,018
55,025

14,769
13,520
11,854
10,466
10,002
10,869
10,274
9,294
10,605
11,860
10,883
10,399
6,460

5,673
5,473
5,158
4,952
4,900
4,968
4,955
5,026
5,054
5,101
5,257
5,209
4,255

14,453
16,390
18,703
22,356
26,961
22,763
23,439
30,198
29,772
29,758
30,723
33,025
33,025

6,881
6,739
7,497
7,652
7,735
7,446
7,025
7,250
7,059
6,854
6,668
6,385
11,285

378
410
652
637
619
660
652
650
397
380
370
386
392

400
400
400
400
400
400
400
400
400
400
400
400
400

1,043
951
985
1,148
1,195
1,181
1,247
1,343
1,325
1,278
1,310
1,372
1,372

115
64
73
62
49
60
79
61
92
78
69
73
73

155
149
166
202
221
232
224
202
212
175
202
192
192

273
279
242
206
209
164
170
269
146
168
157
210
210

499
459
503
678
716
724
774
810
875
856
882
896
896

1972

Jan.p...................
Feb.?...................

56,994
56,851

6,157
6,024

4,275
4,367

33,906
34,494

11,656
11,966

432
473

400

1,523
1,460

86
85

200
164

338
295

898
916

56,426
57,324

For notes see the following page.




A 80

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE— Continued
(Amounts outstanding; in millions o f dollars)
To residents o f foreign countries

To official institutions9

Payable in dollars
E nd o f period
Total

1969.............
19707..........
1971—

Feb..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
Oct..
N ov..
D ec.8

Deposits

Payable in dollars

U.S.
Treasury
bills and
certifi­
cates 3

Other
short­
term
liab.4

Payable
in
foreign
cur­
rencies

D em and

T im e2

38,786
J40,499
\40,541

20,397
15,716
15,726

6,876
5,765
5,802

3,971
13.511
13.511

7,113
5,138
5,133

429
368
368

41,181
42,479
44,515
48,622
45,125
44,698
50,675
51,162
52,275
52,191
f 53,632
I 53,645

13,456
11.781
10,404
9,953
10,809
10,195
9,233
10,513
11.781
10,814
10,326
6,387

5,324
4,991
4,750
4,679
4,736
4,732
4,823
4,843
4,926
5,054
5,017
4,063

15,711
18,061
21,750
26,352
22.199
22,869
29,529
29,226
29,190
30,166
32.415
32.415

6,280
6,993
6,973
7,019
6,722
6,249
6,439
6,183
5,997
5,786
5,489
10,388

54,503
55,864

6,071
5,939

4,074
4,203

33,168
34.199

10,757
11,050

1972—Jan.*.
Feb.p ,

Total

D eposits

U.S.
Treasury
bills and
certifi­
c ates3

O ther
short­
term
liab.4

D em and

T im e2

11,077
19.333
19.333

1,930
1.652
1.652

2,942
2.554
2.554

3,844
13.367
13.367

2,159
1,612
1,612

202
148
148

410
652
637
619
660
652
650
397
380
370
386
392

21,599
24,119
26,531
31,346
26,808
26,868
34,016
35,081
36,063
37,266
39,679
39,001

1,688
1,579
1,628
1,643
1,463
1,469
1,264
1,450
1,231
1,263
1,620
1,327

2,433
2,243
2.204
2.204
2,251
2,307
2,371
2,392
2,480
2,505
2,504
2.076

15,550
17,916
20,119
24,702
20,097
19,605
26,674
27,855
28,982
30,071
32.311
32.311

1,778
1,981
2,180
2,377
2,577
3,067
3,286
3,226
3,212
3,269
3,086
3,122

150
400
400
io 420
420
420
421
158
158
158
158
165

432
473

39,566
40,686

1,185
1,099

2.077
2,161

33,049
34,096

3,089
3,163

166
167

To b an k s11

To other foreigners
Payable in dollars

End o f period

Total

Deposits
Demand

T im e2

U.S.
Treasury
bills and
certifi­
cates

Total

Payable
in
foreign
currencies

Other
short­
term
liab.4

Deposits
Total
Demand

U.S.
Treasury
bills and
certifi­
cates

Other
short­
term
liab.4

To banks
and other
foreigners:
payable in
foreign
cur­
rencies

1969.............
19707 .........

27,709
/2 1 ,166
\21,208

23,419
16,917
16,949

16,756
12,376
12,385

1,999
1,326
1,354

20
14
14

4,644
3,202
3,197

4,064
4,029
4,039

1,711
1,688
1,688

1,935
1,886
1,895

107
131
131

312
325
325

226
220
220

1971— Feb..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
Oct..
Nov..
D ec.8

19,582
18,360
17,984
17,276
18,317
17,830
16,659
16,081
16,212
14,925
/13,953
\ 14,644

15,219
14,029
13,617
13,036
14,121
13,704
12,590
12,196
12,256
10,982
10,034
10,722

10,041
8,476
6,970
6,573
7,586
7,030
6,284
7,486
8,845
7,871
7,047
3,400

1,016
879
654
590
649
600
665
739
786
879
850
320

12
10
1,516
1 ,518
2,016
3,168
2,769
1,286
120
9

4,150
4,665
4,477
4,354
3,869
2,905
2,872
2,686
2,504
2,223
2,130
6,995

4,103
4,078
4,129
4,041
3,956
,894
,839
,646
,734
,732
,691
,694

1,727
1,726
1,805
1,737
1,760
1,696
1,684
1,577
1,705
1,680
1 ,660
1,660

1,875
1,870
1,892
1,885
1,835
1,825
1,787
1,712
1,660
1,670
1,663
1,666

148
135
116
131
86
96
87
85
89
87
96
96

353
347
315
287
276
277
280
272
281
296
274
271

260
253
238
199
240
232
230
239
222
211
228
228

1972—Jan. p .
Feb.p

14,937
15,178

10,899
11,063

3,183
3,127

330
344

7,382
7,587

3,770
3,810

I ,703
1,714

1 ,667
1,698

115
99

285
299

267
306

1 D ata exclude “holdings o f dollars” o f the International M onetary
Fund.
2 Excludes negotiable time certificates o f deposit, which are included
in “ O ther.”
3 Includes nonmarketable certificates o f indebtedness issued to official
institutions o f foreign countries.
4 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates o f deposit. See also note 8(a).
5 U.S. Treasury bills and certificates obtained from proceeds o f sales of
gold by the IM F to the United States to acquire income-earning assets.
U pon term ination o f investment, the same quantity o f gold can be re­
acquired by the IM F.
6 Principally the International Bank for Reconstruction and Develop­
ment and the Inter-American Development Bank.
Includes difference between cost value and face value o f securities in
IM F gold investment account.
7 D ata on the two lines shown for this date differ because o f changes in
reporting coverage. Figures on the first line are comparable in coverage
with those shown for the preceding d ate; figures on the second line are
comparable with those shown for the following date.
8 D ata on second line differ from those on first line because
those




liabilities of U.S. banks to their foreign branches and those liabilities of
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” ; vb) certain accounts previously classified
as “ Official institutions” are included in “ Banks” ; and
a num ber of
reporting banks are included in the series for the first time.
9Foreign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
10 Increase in valuation resulting from revaluation o f Swiss franc.
n Excludes central banks, which are included in “ Official institutions.”
N o t e . —“ Short-term” refers to obligations payable on demand or having
an original maturity o f 1 year or less. For data on long-term liabilities
reported by banks, see Table 10. D ata exclude the “ holdings o f dollars”
of the International M onetary F und; these obligations to the IM F consti­
tute contingent liabilities, since they represent essentially the am ount of
dollars available for drawings from the IM F by other member countries.
D ata exclude also U.S. Treasury letters o f credit and non-negotiable, non­
interest-bearing special U.S. notes held by the Inter-American Develop­
ment Bank and the International Development Association.

APRIL 1972

d

INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 81

9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. Amounts outstanding; in millions o f dollars)
1970

1971

1972

A rea and country
Dec.

June

July

Aug.

Europe:
A ustria...........................................................
Belgium-Luxembourg.................................
D enm ark.......................................................
Finland..........................................................
F ran ce............................................................
G erm any.......................................................
G reece............................................................
Ita ly ................................................................
N etherlands..................................................
N orw ay.........................................................
P ortugal.........................................................
Spain..............................................................
Sweden...........................................................
Sw itzerland...................................................
T u rk ey ...........................................................
U nited K ingdom ........................................
Yugoslavia....................................................
O ther W estern Europe2............................
U.S.S.R..........................................................
Other Eastern E u ro p e................................

185
597
189
117
2,267
7,520
184
1,330
762
324
274
198
503
1,948
46
5,504
37
594
15
54

203
761
175
110
2,467
7,268
152
1,760
609
506
270
200
681
2,093
21
6,121
33
1,000
9
66

274
781
201
131
3,242
5,446
159
1,777
461
574
271
208
718
1,914
27
6,209
39
1,417
10
61

244
916
164
116
3,663
5,082
160
2,032
283
649
295
204
723
3,355
26
6,124
31
1,517
10
45

Sept.

Oct.

Nov.

D ec.1

244
901
173
116
3,302
5,339
179
2,286
302
655
314
185
729
3,268
27
6,342
41
1,446
11
61

255
875
171
136
2,842
5,606
184
2,231
315
658
307
202
729
3,306
48
7,223
34
1,404
12
56

246
736
168
134
2,858
5,733
175
1,953
289
714
308
185
757
3,265
67
7,711
40
1,396
8
67

254
701
168
160
3,150
6,596
170
1,888
271
685
303
203
791
3,248
68
7,374
34
1,369
14
53

Jan.*

Feb.P

254
701
168
160
3,150
6,596
170
1,888
270
685
303
203
792
3,249
68
7,379
34
1,376
14
53

261
735
177
156
3,234
6,972
167
1,704
306
702
299
187
803
3,266
36
7,892
35
1,307
28
84

252
779
179
150
3,311
7,724
164
1,697
419
680
282
177
871
3,114
34
7,600
40
1,410
11
46

T o tal.......................................................

22,648

24,506

23,921

25,639

25,921

26,594

26,809

27,503

27,515

28,352

28,942

C anada...............................................................

4,056

3,292

3,250

3,316

3,472

3,803

3,590

3,441

3,441

3,593

3,575

Latin A m erica:
Argentina.......................................................
B razil..............................................................
C hile...............................................................
C olom bia.......................................................
C uba...............................................................
M exico...........................................................
P a n a m a .........................................................
P e ru ................................................................
U ruguay.........................................................
Venezuela.......................................................
O ther Latin American republics..............
Bahamas and B erm uda..............................
N etherlands Antilles and Surinam ..........
O ther Latin A m erica..................................

539
346
266
247
7
821
147
225
118
735
620
745
98
39

447
361
257
183
6
790
166
200
116
786
582
960
101
46

501
428
235
178
7
705
147
162
116
782
624
1,074
97
46

499
418
252
168
7
728
149
146
127
787
623
885
101
49

419
358
247
178
6
672
127
162
117
806
597
661
87
44

415
360
211
181
6
680
150
163
116
915
608
346
94
42

437
383
189
179
6
706
150
163
108
874
615
376
85
46

441
342
191
188
6
709
154
164
108
963
656
657
87
36

441
342
191
188
6
715
154
164
108
963
655
656
87
37

435
376
180
185
6
757
158
164
108
870
645
313
97
43

420
423
146
176
6
747
156
160
no
843
683
277
90
47

T o tal.......................................................

4,952

5,002

5,100

4,940

4,482

4,285

4,317

4,702

4,708

4,336

4,286

Asia:
China M ainland.................................
H ong K o n g ...................................................
In d ia ...............................................................
Indonesia.......................................................
Israel...............................................................
J a p a n ..............................................................
K o rea.............................................................
Philippines.....................................................
Taiw an...........................................................
T hailand.........................................................
O th e r..............................................................

33
258
302
73
135
5,150
199
285
275
508
717

35
306
255
71
132
8,673
201
321
291
281
571

35
301
222
67
128
8,691
187
333
300
237
634

34
311
193
59
115
13,136
185
328
281
183
551

34
296
150
57
108
13,793
195
322
268
144
568

34
316
154
69
130
14,014
189
294
294
131
631

34
336
142
65
133
13,919
216
304
248
107
579

39
312
89
63
150
14,294
201
304
258
126
595

39
312
89
63
150
14,295
196
304
258
126
595

39
304
114
54
133
14,179
224
269
280
121
774

38
335
118
71
143
14,950
220
264
291
116
708

T o tal.......................................................

7,936

11,137

11,135

15,376

15,936

16,255

16,082

16,432

16,427

16,493

17,254

South A frica.................................................
U.A .R. (Egypt).............................................
O th e r..............................................................

14
11
83
17
395

16
9
61
15
285

19
7
71
19
299

44
10
74
13
303

25
11
81
25
321

16
8
74
16
331

12
9
74
13
314

12
9
78
24
474

12
9
78
24
474

12
10
53
14
510

13
9
73
13
538

T o tal.......................................................

521

385

415

444

463

445

422

597

597

599

646

O ther countries:
A ustralia........................................................
All other.........................................................

389
39

757
46

830
47

914
46

854
34

854
39

919
51

916
42

916
42

1,087
42

1,121
41

Africa:
Congo (K inshasa)........................................

T otal.......................................................

428

803

877

960

888

893

970

957

957

1,129

1,162

Total foreign countries..................................

40,541

45,125

44,698

50,675

51,162

52,275

52,191

53,632

53,645

54,503

55,864

International and regional:
International3...............................................
Latin American regional............................
O ther regional4............................................

975
131
114

1,230
210
141

1,242
237
168

1,342
262
139

1,309
279
137

1,276
266
136

1,278
287
145

1,332
298
142

1,332
298
142

1,475
306
142

995
321
145

T otal.......................................................

1,220

1,581

1,647

1,743

1,725

1,678

1,710

1,772

1,772

1,923

1,460

G rand to tal...........................................

41,761

46,706

46,345

52,418

52,887

53,953

53,901

55,404

55,417

56,426

57,324

F or notes see the following page.




A 82

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES BY COUNTRY— Continued
(End o f period. Amounts outstanding; in millions o f dollars)
Supplementary data 5
1970

1969

1969

1971

1970

1971

Area or country

A rea o r country

Other W estern E urope:

Dec.

Apr.

Dec.

Apr.

Dec.

11
9
38

15
10
32

10
10
41

7
10
29

2
11
16

O ther Latin American republics:
43

17
29

19
29

16
34

63

76

59

8
O ther Latin A m erica:
British West Indies.............................

69
41
99
79
75

52
78

59
43
90
72
80
97
19
44

10

15
14

30

38

33

38

16
2
1
3
35
26

15
5
1
4
41
6

26
4
2
4
32
11

15
3
2
4
50
7

Dec.

Apr.

Dec.

17
46
3
83
30
35
25
106
17
4
94

30
66
4
82
48
34
26
166
25
6
91

14
54
5
54
22
38
18
106
57
7
179

14
20
10
43
23
288
11

13
33
7
47
41
430
11

3
10
6
5
20
16

Apr.

Dec.

36

20

60
29
27
39
41
43
'3
161

46
23
33
29
79
35
4
159

13
12
6
13
21
91
25

23
11
8
9
23
c6)
c6)

1
18
7
7
38

17
19
8
38
22
195
17
1
1
9
7
8
10

10

1
6

5
14

3
( 6)

18

25

22

23

Other Asia—C ont.:

55
62
123
57
78
117
18
42
19
50
17
10

Ryukyu Islands (incl. O kinaw a).
Saudi A ra b ia ..................................
Singapore.........................................

O ther Africa:
Ethiopia (incl. Eritrea).................

( 6)
19
10
5
4
59
( 6)

1 D ata in the two columns shown for this date differ because o f changes
in reporting coverage. Figures in the first column are comparable in cov­
erage with those shown for the preceding date; figures in the second column
are com parable with those shown for the following date.
2 Includes Bank for International Settlements and European Fund.
3 D ata exclude “ holdings o f 'dollars” o f the International M onetary
Fund but include IM F gold investment.

4 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “ Europe.”
5 Represent a partial breakdown o f the am ounts shown in the “ other”
categories (except “ Other Eastern Europe” ).
6 N ot available.

10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED
BY BANKS IN THE UNITED STATES
(Amounts outstanding; in millions o f dollars)
To foreign countries
End o f period

Total

To
inti.
and
regional

Total

Official
institu­
tions

Country or area

Other
B anks1 foreign­
ers

O ther
Argen­
Latin
tina
America

Israel

Japan

Thailand

O ther
Asia

All
other
countries

1968................................
1969................................
1970.................................

3,166
2,490
1,703

777
889
789

2,389
1,601
914

2,341
1,505
695

8
55
166

40
41
54

284
64
13

257
175
138

241
41
6

658
655
385

201
70
8

651
472
122

97
124
240

1971

Feb......................
M ar.....................
A pr......................
M ay ....................
Ju n e ....................
Ju ly .....................
Aug.....................
Sept.....................
Oct......................
N ov.....................
Dec......................

1,470
1,350
1,187
1,142
1,129
1,024
895
878
935
911
915

687
630
577
548
557
501
480
473
483
446
446

784
720
611
594
572
524
415
405
452
465
469

574
494
407
393
334
284
172
161
159
170
156

160
167
147
144
189
189
190
189
236
237
257

50
59
57
57
48
51
53
55
57
59
56

13
13
13
13
13
13
13
15
15
15
2

109
91
92
94
87
88
66
62
84
101
109

6
6
7
8
8
8
8
8
8
7
6

317
262
186
182
130
83
12
12
12
8
3

1
1
1
1
1
1
1
1
1
*
*

102
96
85
83
80
91
92
90
92
89
83

235
251
225
213
252
239
223
217
240
245
265

1972—Jan.*...................
F eb .* ..................

1,009
1,062

546
565

462
497

150
165

254
253

58
79

2
2

105
107

6
6

1
*

*
*

80
79

268
303

1 Excludes central banks, which are included with “ Official institutions.”




APRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 83

11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES
(End o f period; in millions of dollars)
1972

1971
Feb.

M ar.

Apr.

E urope:
Belgium-Luxembourg.......................
Switzerland..........................................
United K ingdom ................................
O ther W estern E urope.....................
Eastern E u ro p e..................................

6
34
518
24
6

6
34
510
25
6

6
31
519
25
6

6
30
485
25
6

6
29
490
25
6

6
29
496
25
6

6
29
460
25
6

6
29
432
49
5

6
29
427
71
5

6
60
362
82
5

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.**

Feb.*'

6
60
323
85
5

6
53
279
95
5

6
53
283
95
5

T o ta l............................................

589

582

587

552

557

562

525

521

538

516

480

438

441

C an ad a.....................................................

177

174

173

175

174

175

175

175

175

179

181

179

179

Latin Am erica:
Latin American republics.................
O ther Latin A m erica........................

2
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

1
6

T o tal.............................................

8

7

7

7

7

7

7

7

7

7

7

7

7

Jap an ....................................................
O ther A sia...........................................

20
55
10

20
55
10

20
55
10

20
55
10

20
142
10

20
395
10

20
633
10

20
755
10

20
1,009
10

20
1,488
10

1,717
10

2,007
10

2,146
10
2,156

Asia:

T o ta l.............................................

85

85

85

85

172

425

663

784

1,038

1,518

1,727

2,017

A frica.......................................................

43

43

43

43

43

43

43

43

25

8

8

8

8

All other...................................................

«

«

«

«

«

*

«

«

«

*

«

*

*

T otal foreign countries.........................

901

890

895

861

952

1,211

1,413

1,530

1,782

2,228

2,402

2,650

2,791

International and regional:
Intern atio n al.......................................
Latin American regional.................

17
25

115
26

115
26

115
27

115
27

115
28

126
28

126
29

126
29

126
30

126
30

126
31

126
31

T o ta l.............................................

42

141

141

142

142

143

154

155

155

156

156

157

157

G rand to ta l................................

943

1,031

1,036

1,003

1,095

1,354

1,567

1,685

1,937

2,383

2,558

2,807

2,948

N o t e . —D ata represent estimated official and private holdings o f marketable U.S. Govt, securities with an original maturity o f more than 1

year, and are based on benchm ark surveys o f holdings and regular monthly
reports o f securities transactions (see Table 16).

12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF
FOREIGN COUNTRIES
(In millions o f dollars or dollar equivalent)'
Payable in foreign currencies

Payable in dollars
End o f period

Total
Total

Bel­
g iu m

Can­
ada 1

Ger­

Italy

m any

Korea

Tai­
w an

Thai­
land

Italy

125

Switz­
e r la n d

4 1,750
1.083

4 1,084
542

100

1.083
1.083
5 1,111
1,444
1,714
1.716
1.716
6 1,827

542
542
542
542
542
542
542
542
542
612

541
541
5 569
569
569
902
1,172
1.174
1.174
1.215

1,828
1,828
1,752

612
612
536

1.216
1,216
1,216

<3,181
3.563

1,431
2.480

1,129
2.289

135
25

20
20

1971— Mar.
Apr.
M ay
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.

3.563
3.563
5 3,592
6.592
8.592
8,924
9,193
9,195
9,271
6 9,657

2.480
2.480
2.480
5.480
7.480
7.479
7.479
7.479
7,554
7.829

2.289
2.289
2.289
2.289
2.289
289
289
289
365
640

20
20
20

3.000
5.000
5.000
5.000
5.000
5.000
5.000

25
25
25
25
25
23
23
23

20
20
20
20
20

22
22

20
20

100
100
100

1972—Jan..
Feb.,
M ar.

9.658
9.658
9,940

7.829
7.829
8,188

2.640
2.640
2,840

5.000
5.000
5,158

22

20

100

22
22

20
20

100




Ger­
m any 3

100
100

196 9
197 0

1 Includes bonds issued in 1964 to the Government o f Canada in connec­
tion with transactions under the Columbia River treaty. Amounts out­
standing end o f 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 Bonds issued to the G overnment o f Italy in connection with mili­
tary purchases in the United States.
3 In addition, nonm arketable U.S. Treasury notes amounting to $125
million equivalent were issued to a group o f German commercial banks in
June 1968. The dollar value o f these notes was increased by $10 million in
Oct. 1969 and by $18 million as o f Dec. 31, 1971.

Total

100
100
100
100
100

100

100

1,111
1,111

541
541

4 Includes an increase in dollar value o f $84 million resulting from
revaluation o f the German m ark in Oct. 1969.
5 Increase in valuation resulted from redem ption o f outstanding Swiss
franc securities at old exchange rate and reissue of securities at new ex­
change rate with same m aturity dates, at time o f revaluation o f Swiss
franc. The new issues include some certificates o f indebtedness issued to
replace notes which were within a year o f maturity.
6 Includes $106 million increase in dollar value o f foreign currency
obligations revalued to reflect market exchange rates as o f Dec. 31, 1971.
Dollar costs of repayment will be subject to negotiation as to settlement
terms after prospective action on devaluation of the dollar.

A 84

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. Am ounts outstanding; in millions o f dollars)
1970

1971

1972

Area and country
Dec.

June

E u ro p e:
A ustria............................................................
B elgium -Luxem bourg................................
D e n m ark .......................................................
F inland...........................................................
F ran c e ............................................................
G erm any.......................................................
G reece............................................................
Ita ly ................................................................
N etherlands...................................................
N orw ay..........................................................
P o rtu g al.........................................................
Spain...............................................................
Sweden...........................................................
Sw itzerland...................................................
T u rk ey ...........................................................
U nited K in g d o m ........................................
Yugoslavia.....................................................
O ther W estern E urope...............................
U.S.S.R ..........................................................
Other Eastern E urope................................

6
50
40
66
113
186
26
101
61
54
11
52
97
100
9
379
35
13
3
45

T o tal.......................................................

Aug.

July

Sept.

Oct.

Nov.

5
58
51
133
106
250
22
120
87
67
18
61
135
148
14
550
37
17
2
44

5
48
46
129
124
231
21
133
84
61
13
64
138
162
11
499
38
18
2
48

8
95
47
117
155
259
22
140
92
71
11
66
117
253
26
804
37
16
2
37

5
60
47
114
148
252
21
130
82
68
12
62
116
145
20
454
29
16
2
39

4
53
50
113
132
197
24
114
70
66
10
58
113
136
4
409
27
16
4
33

1,449

1,927

1,876

2,375

1,821

1,085

1,003

980

994

1,128

326

196
19
22

316
424
155
299
13
879
109
156
43
230
314
238
19
27

334
417
156
315
13
943
99
173
44
239
309
286
18
31

329
436
151
335
13
977
113
169
41
249
303
271
15
36

T o tal.......................................................

3,222

3,222

3,377

Asia:
China M ainland..........................................
H ong K o n g ...................................................
In d ia...............................................................
Indonesia.......................................................
Israel...............................................................
J a p a n ..............................................................
K o rea.............................................................
Philippines.....................................................
Taiw an...........................................................
Thailand........................................................
O th er..............................................................

2
39
13
56
120
3,890
178
137
95
109
167

1
60
19
30
117
3,502
259
125
130
116
200

C an ad a...............................................................
Latin America:
B razil..............................................................
C hile...............................................................
C olom bia.......................................................
C u b a...............................................................
M exico...........................................................
P an am a..........................................................
P e ru ................................................................
U ruguay.........................................................
Venezuela......................................................
O ther Latin American republics..............
Bahamas and B erm uda..............................
Netherlands Antilles and Surinam ..........
O ther Latin A m erica..................................

13

63
283

D ec.1

Jan.?

Feb.?

10
63
48
116
179
227
23
139
90
66
12
68
120
143
3
535
22
11
10
33

11
57
49
135
267
235
30
159
105
67
12
70
118
145
3
564
19
12
28
37

11
57
49
135
268
235
30
161
105
67
12
70
118
145
3
564
19
12
28
37

8
71
50
137
311
202
30
166
92
72
14
83
125
147
4
527
20
13
33
44

11
102
54
139
345
253
25
182
102
71
14
88
125
181
8
564
15
16
37
48

1,634

1,918

2,123

2,125

2,148

2,377

1,165

1,171

1,581

1,581

1,507

1,649

337
412
143
353
13
901
97
190
31
243
319
265
17
27

327
418
138
353
13
808
95
198
32
251
326
242
21
32

316
410
142
378
13
839
109
201
39
249
337
264
20
23

305
434
139
380
13
936
125
176
41
268
374
262
18
i 25

305
440
139
380
13
936
125
176
41
268
374
262
18
i 26

310
452
126
375
13
1,004
110
163
41
271
366
253
20
23

306
472
122
390
13
974
106
159
41
269
364
288
23
21

3,437

3,347

3,253

3,340

3,495

3,502

3,527

3,549

1
69
18
63
123
3,224
252
126
127
123
203

1
71
18
60
116
4,085
252
119
123
127
239

1
78
20
57
125
4,047
217
no
113
147
249

1
77
22
39
103
3,738
286
111
105
145
235

1
71
17
40
132
3,888
329
129
94
148
226

1
68
21
41
129
4,279
348
136
109
164
252

1
70
21
41
129
4,296
348
147
109
173
252

1
61
22
37
124
4,149
330
150
123
175
237

1
81
20
35
103
4,080
394
153
154
198
213

T o tal.......................................................

4,807

4,559

4,329

5,211

5,163

4,862

5,074

5,548

5,586

5,407

5,432

Africa:
Congo (K inshasa)........................................
M orocco........................................................
South A frica.................................................
U.A.R. (Egypt)............................................
O th er..............................................................

4
6
77
13
79

6
5
98
14
111

18
6
131
12
109

22
6
137
11
111

21
5
144
12
110

22
5
146
11
105

21
4
152
9
94

21
4
156
10
103

21
4
158
10
103

21
4
163
11
91

14
4
167
13
101

T o tal.......................................................

180

235

276

288

291

289

281

295

296

290

300

O ther countries:
A ustralia........................................................
All o ther........................................................

64
16

94
20

105
21

118
22

134
23

140
22

140
24

159
27

159
27

162
31

158
29

T o tal.......................................................

80

114

126

140

158

162

164

186

186

193

187

Total foreign countries..................................

10,823

11,059

10,963

12,445

11,909

11,365

11,948

13,229

13,276

13,071

13,495

International and regional............................

3

3

3

2

3

3

4

3

3

3

5

G rand to ta l...........................................

10,826

11,062

10,966

12,447

11,912

11,368

11,952

13,232

13,279

13,075

13,500

1 D ata in the two columns shown for this date differ because o f 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.
N o t e . —Short-term

claims are principally the following items payable




on demand or with a contractual maturity of not more than 1 year: loans
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. m onetary authorities.

APRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 85

14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions o f dollars)
Payable in dollars

Payable in foreign currencies

Loans to—
End o f period

Total

Official
institu­
tions

B anks1

Others

Collec­
tions
out­
stand­
ing

Total
Total

made
for acct.
o f for­
eigners

Other

Total

Foreign
govt, se­
Deposits curities,
with for­ co ml.
eigners
and fi­
nance
paper

O ther

9,667
10,826

9,151
10,175

3,278
3,051

262
119

1,943
1,720

1,073
1,212

2,015
2,389

3,202
3,985

656
750

516
651

352
393

89
92

74
166

10,576
10,706
10,768
11,613
11,062
Ju ly ..................... 10,966
12,447
11,912
11,368
11,952
3 ,232
D ec.2 ................. /1
\ 13,279

10,040
10,142
10,234
10,977
10,497
10,427
11,814
11,230
10,672
11,280
12,346
12,394

2,949
3,002
3,110
3,377
3,405
3,563
4,294
3,835
3,520
4,028
4,531
3,998

88
100
107
156
147
200
191
188
135
167
221
222

1,594
1,598
1,754
1,929
1,969
2,051
2,682
2,236
2,056
2,431
2,631
2,097

1,267
1,304
1,250
1,293
1,288
1,312
1,421
1,410
1,329
1,430
1,680
1,679

2,353
2,335
2,279
2,349
2,378
2,364
2,357
2,372
2,307
2,306
2.475
2.475

3,990
4,053
4,127
4,177
3,993
3,682
4,162
4,052
3,877
3,901
4,243
4,270

749
752
718
1,074
721
818
1,001
972
969
1,046
1,097
1,651

535
564
534
636
565
539
633
682
696
671
886
885

334
365
339
449
374
382
497
481
473
484
593
592

111
102
92
78
102
62
46
104
111
89
119
119

90
96
103
109
89
94
90
97
112
99
174
174

12,330
12,705

3,882
4,030

206
196

2,061
2,053

1,614
1,781

2,473
2,430

4,251
4,413

1,724
1,832

744
795

501
569

139
127

104
99

1969.................................
1970.................................
1971

Accept”

Feb......................

1972—Jan.*5...................
Feb.*...................

13,075
13,500

1 Excludes central banks which are included with “ Official institutions.”
2 D ata on second line differ from those on first line because ^a) those
claims o f U.S. banks on their foreign branches and those claims o f U.S
agencies and branches o f foreign banks on their head offices and foreign

branches which were previously reported as “ Loans” are included in
“ Other short-term claims” ; and ^b’a num ber o f reporting banks are included
in the series for the first time.

15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(Amounts outstanding; in millions o f dollars)
Type

Country or area

Payable in dollars
End o f
period

Total

Loans to —

Total

Official
institu­
tions

Other
B anks1 foreign­
ers

O ther
long­
term
claims

Payable
in
foreign
curren­
cies

U nited
K ing­
dom

O ther
Europe

Latin
C anada America

Japan

O ther
Asia

All
other
countries

1969...................
1970...................

3,250
3,075

2,806
2,698

502
504

209
236

2,096
1,958

426
352

18
25

67
71

411
411

408
312

1,329
1,325

88
115

568
548

378
292

1971— Feb........
M ar. . . .
A pr........
M a y .. . .
J u n e .. . .
J u ly .. . .
Aug. . . .
Sept. . . .
Oct........
Nov. . . .
Dec........

2,964
3,050
3,088
3,252
3,223
3,294
3,393
3,440
3,494
3,537
3,621

2,649
2,744
2,783
2,940
2,919
2,992
3,090
3,121
3,181
3,237
3,320

484
501
504
523
475
489
513
514
533
555
563

213
226
227
251
241
253
265
269
266
282
309

1,952
2,017
2,053
2,167
2,203
2,250
2,311
2,338
2,382
2,401
2,448

289
277
271
279
278
282
276
291
286
276
278

26
30
33
32
26
20
28
28
26
23
22

77
111
117
107
112
118
120
126
127
138
130

420
424
439
498
519
530
546
570
580
586
592

266
268
275
277
266
266
259
264
261
244
219

1,264
1,277
1,279
1,269
1,234
1,277
1,337
1,351
1,323
1,357
1,435

121
125
120
208
225
219
221
225
240
240
246

521
548
554
548
514
515
539
536
565
564
571

295
297
304
343
353
370
371
366
397
407
426

1972—Ja n .* '...
F e b .p ...

3,657
3,706

3,360
3,412

563
577

307
319

2,490
2,516

273
271

24
24

132
124

581
592

256
254

1,436
1,453

241
241

583
613

427
430

1 Excludes central banks, which are included with “ Official institutions.”




A 86

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE
(In millions o f dollars)
U.S. corporate
securities 2

M arketable U.S. Govt, bonds and notes 1

Foreign bonds

Foreign stocks

N et purchases o r sales
Period
Total

Official

-2 5
130
1

82
1,542
388

-4 1
1,661
443

17
99
*
1
*
1
11
1
*
1
1

2
-1 1
5
-3 3
91
259
202
117
252
445
175

5

Ju n e...................
Ju ly ...................
A ug....................
Sept....................
Oct.....................
N ov....................
D ec....................

19
88
5
-3 3
92
260
212
118
252
446
175

Ja n .* .................
F eb.y.................

248
141

1

247
141

Feb.....................
A pr....................

1972

Total

N et pur­ Pur­
chases or chases
sales

Pur­
chases

Sales

123 11,426
-1 1 9 14,531
-5 5
3,185

9,844
13,139
2,585

1,582
1,392
601

Foreign

56
1,672
389

1970...............................
1971...............................
1972 Jan. Feb.* ----1971

Intl.
and
regional

Sales

N et pur­
chases or
sales

1,490
1,687
287

2,441
2,568
660

-9 5 1
-8 8 0
-3 7 3

1,033
1,387
390

998
1,432
368

35
-4 4
22

Pur­
chases

Sales

Net pur­
chases or
sales

Other

87
253
238
145
257
474
209

-3
-1 1
4
-3 3
4
6
-3 6
-2 8
-5
-2 9
-3 4

1,516
1,411
1,383
1,163
1,004
1,038
1,152
1,043
965
940
1,673

1,411
1,314
1,412
1,126
1,019
1,002
1,013
795
972
845
1,207

105
97
-2 9
37
-1 5
36
139
249
-7
94
465

126
176
174
118
139
112
110
131
163
138
186

107
190
234
218
239
137
313
138
257
135
175

19
-1 4
-6 0
-1 0 0
-1 0 0
-2 6
-2 0 3
-7
-9 5
3
11

68
85
117
94
98
102
124
118
157
137
195

111
121
179
120
130
144
102
96
104
76
151

-4 4
36
-6 3
26
-3 1
-4 2
22
22
52
61
43

305
138

-5 7
3

1,580
1,606

1,277
1,307

302
299

127
160

419
241

-2 9 2
-8 1

191
200

170
199

21
1

*

1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions o f foreign countries; see Table 12.
2 Includes State and local govt, securities, and securities o f U.S. Govt,
agencies and corporations th at are not guaranteed by the United States.

Also includes issues o f new debt securities sold abroad by U.S. corpora­
tions organized to finance direct investments abroad.
N o t e .—Statistics include transactions o f international and regional
organizations.

17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions of dollars)
Period

G er­

Total

N ether­ Switzer­

m any

la n d s

la n d

U nited

Other

Total

K in g d o m

E u ro p e

E u ro p e

C anada A Latin
m e ric a

197 0
197 1
1972—Jan.-Feb.P

626
733
422

58
86
49

195
131
33

128
219
97

110
168
153

-3 3
-4 9
37

482
627
367

-9
-9 2
-3 1

47
39
21

1971—Fe b
M ar...........
A pr............
M ay..........
Ju n e ..........
Ju ly...........
A ug...........
Sept...........
O ct............
N ov...........
D ec............

-3 2
-2 6
-5
10
-1 1
-4
79
155
-4 7

-23
-2 6

28
11
-1 0

9

-2 3

-3 4
1
-7
-1 7

-5
18

-3 3
U
-3 0
-1
68

7
-5 9
-2 4
24
-1 7
4
38
132

1972—Jan. P
Feb.9........

36

483

9
3
12
10
24
8
9
66

3
-6
7
33
-4
-9
51

22
76

-6
-2 7
-4
10
9
-1 0
24
38
4
1
102

269
153

36
13

29
4

60
37

98
55

*




8

*

2

8
13
12
15
38
9
2

-11

-1 8
-6

-1 9
6

2

-2 1

42
394
218
149

-11

-2 4
11
10
-2 1
-1 4

11

-4
-4
2

Other I n tl . &
c o u n tr ie s r e g io n a l
85
108
47

22

9
11
1
7
15
16
4
5

6
6

2

13
7
-1 7
-38
49

39

1
-3 2

11
10

27
20

6

54
17

7
14
-2
*

2

7
4
-2
12
6

APRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 87

18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions o f dollars)
N ether­ Switzer­ U nited
land Kingdom
lands

Other
Europe

Total
Europe

118
327
122

91
39
27

464
586
116

128
37
21

25
19
-1 5

28
-2
54

1
•
*

-1 2
-2 1
«

324
39
3

16
32
7
-5
-2
3
*
21
53
42
-1 2

21
32
7
19
-4
20
49
69
24
70
18

39
5
5
-6
•
1
-3
-3
2
6
-6

85
92
19
33
-8
22
42
86
83
122
—3

-4
11
-2
*
11
-1 0
«
16
-8
7
-1 3

1
6
4
3
2
3
1
5
-2
-1
•

1
3
-6
-1
-3
*
1
«
-1
2
1

*
*
*
•
*
*
«
*
•
*
«

-1 2
*
*
-2
-2
*
«
*
*
-5

65
11
—39
-6
-3
24
17
-1 4
-3 3
-3 1
-3

-1 4
-2 0

20
102

38
-1 1

49
67

10
11

3
51

«
«

«
*

-2 7
29

Total

France

G er­
many

1970.......................
1971.......................
1972—Jan.-Feb.*

956
658
179

35
15
2

48
35
1

37
-1
*

134
171
-3 4

1971—Feb............
M ar...........
A p r...........
M ay..........
Ju n e..........
Ju ly ...........
Aug............
Sept...........
O ct.............
N ov...........

137
123
-2 3
27
-4
40
60
94
40
94
-1 8

4
10
3
-1
-1
-2
-3
•
5
*
-1

3
14
-3
27
-1
-1
-1
-1
1
4
-1

2
-1
*
*
•
1
-1
*
«
-1
-2

1972—Ja n .* .........
Feb.*.........

33
146

3
-1

2
-1

1
-1

Period

N o t e .—Statistics include State and local govt, securities, and securities
o f U.S. Govt, agencies and corporations th at are not guaranteed by

Latin
C anada America

-2
-1 3

Asia

Africa

O ther Intl. anc
countries regional

the United States. Also includes issues o f new debt securities sold abroad
by U.S. corporations organized to finance direct investments abroad.

19. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA

20.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS

(In millions o f dollars)

(Amounts outstanding; in millions o f dollars)

Period

Total

Intl.
and
re­
gional

Total
foreign
coun­
tries

Eu­
rope

197 0
197 1
1972—Jan.
-F e b .* . .

-9 1 5
-9 2 5

-2 5 4
-3 1 0

-6 6 2
-6 1 5

50
34

-5 8 6
-2 8 5

-1 1
-5 3

-3 5 1

-2 5 4

-9 6

42

-9 7

-2 5

-1 9

1971—F e b ...
M a r ...
A p r.. ,
M a y .,
June. .
J u ly ..
Aug..
Sept..
O ct...
N o v ..
D ec.. ,

-2 4
-5 0
-1 2 2
-1 2 6
-1 3 2
-6 7
-1 8 0
15
-4 3
64
55

-4
11
-4 6
4
13
7
-1 5 2
8
32
11
2

-2 0
-6 1
-7 7
-1 3 0
-1 4 5
-7 4
-2 9
6
-7 5
53
53

-2 4
6
-3 4
-4
-3
-1 6
23
1
22
37
23

27
-3 4
29
-6 2
-9 3
-6
-2 3
-7
-1 1 1
32
53

4
11
5
-1 3
5
-2
-1 6
3
-1 3
-2 8
-1 0

-2 9
-4 4
-7 9
-5 2
-7 2
-5 3
-1 4
8
24

1972—Jan.*.
Feb.*.

-2 7 1
-8 0

-2 4 2
-1 2

-2 9
-6 7

11
32

-2 4
-7 3

-2 6
1

6
-25

Canada

Latin
Amer­ Asia
ica

Af­
rica

-1 2 9
-3 4 5

Other
coun­
tries

20
32
-2

4
1
1
1
2
14
2
1
1
2
3
2

Credit
balances
(due to
foreigners)

D ebit
balances
(due from
foreigners)

1969—M ar..
June.
S e p t..
D ec..

553
566
467
434

393
397
297
278

1970— M ar..
June.
Sept..
D e c ..

368
334
291
349

220
182
203
281

1971—M ar..
June.
S e p t..
Dec.*

511
419
333
311

314
300
320
312

End of
period

N o t e .— D ata represent the money credit balances and
money debit balances appearing on the books o f reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.

Notes to Table 21a. on following page:
Revised figures for Sept. and Oct. will appear in the M ay B u l l e t in .
For a given m onth, total assets may not equal total liabilities because
1 T otal assets and total liabilities payable in dollars were $6,485 and some branches do not adjust the parent’s equity in the branch to reflect
$6,669 million, respectively.
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
N o t e .—Components may n o t add to totals due to rounding.
dollar values.




A 88

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972
21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)
Claims on U.S.

Location and currency form

Month-end

Total
Total

IN ALL FO R EIG N COUNTRIES
Total, all currencies..........................

Payable in U.S. d o llars.

IN U N ITED KINGDOM
Total, all currencies.........

Payable in U.S. d o lla rs.

IN T H E BAHAMAS
Total, all currencies.

F o r notes see p. 87.




Claims on foreigners

Parent
bank

Other

Total

1969—D ec...

36,468

1970—O c t...
N o v ...
D e c...
1971—J a n . . .
F e b ...
M ar..
A p r...
M a y ..
Ju n e ..
J u ly ..
A ug...
Sept..
O c t...
N ov..

44,099 11,467
45,011 10,344
47,279 9,686
47,131
8,794
47,211
7,863
48,263 6,769
49,419
5,047
50,542 4,398
52,705 4,853
52,714 4,833
54,828 4,092
56,930 5,067
57,444 5,854
58,632 5,662

1969—D e c ...

29,099

15,130

13,642

1,489

13,622

1970—O ct.. .
N ov..
D e c..
1971—J a n ...
F e b ..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
O c t..
N ov..

32,699 11,193
32,991 10,073
34,537 9,400
34,221
8,546
33,842 7,657
34,960 6,560
35,717 4,856
36,037 4,193
37,622 4,648
37,092 4,613
37,801
3,875
38,698 4,828
38.541
5,610
39,132 5,380

9,252
7,987
7,233
6,112
5,118
4,043
2,501
2,172
2,651
2,610
2,025
2,950
3,633
3,319

1,941
2,086
2,167
2,434
2,538
2,516
2,356
2,020
1,998
2,003
1,851
1,877
1,977
2,061

21,027
22,405
24,163
24,260
24,606
26,409
27,337
28,264
29,412
28,693
30,658
32,059
32,525
33,068

15,380 13,660
9,274
8,003
7,248
6,125
5,131
4,055
2,511
2,191
2,661
2,619
2,036
2,970
3,649
3,341

1,720 20,145
2,193
2,340
2,438
2,670
2,731
2,714
2,536
2,207
2,191
2,214
2,056
2,097
2,204
2,320

31,337
33,278
36,192
36,035
36,847
38,623
39,902
41,543
43,266
43,063
46,348
48,771
49,526
51,016

Other
branches
of
parent
bank

Other
banks

Offi­
N on­
cial
bank
for­
insti­
tutions eigners

Other

3,524

9,756

537

6,327

944

6,048
6,372
6,881
7,308
7,687
7,838
8,468
8,317
8,924
8,788
9,126
9,706
10,153
10,416

14,538
15,419
16,979
16,368
16,715
17,284
17,387
18,100
19,042
18,455
p20,735
22,262
21,885
22,613

544
692
695
641
673
744
746
797
849
1 005
1,128
1,128
1,158
1,195

10,217
10,794
11,636
11,717
12,314
12,757
13,301
14,329
14,451
14,815
15,360
15,676
16,331
16,793

1,295
1,390
1,402
2,302
2,501
2,871
4,471
4,600
4,587
4,817
4,388
3,091
2,064
1,954

.994

8,074

349

3,205

346

3,737
4,009
4,208
4,504
4,716
5,070
5,654
r5,354
5,609
5,648
5,791
6,028
6,093
6,436

11,222
11,876
13,248
12,553
12,214
13,307
13,209
13,815
14,625
13,780
15,427
16,407
16,277
16,642

334
434
362
370
423
453
529
552
586
713
865
851
873
910

5,735
6,086
6,795
6,833
7,253
7,580
7,944
8,542
8,593
8,552
8,576
8,774
8,981
9,080

479
513
524
1,414
1,579
1,990
3,525
3,581
3,562
3,787
3,268
1,811
705
684

1969—D ec..

24,130

11,311

10,043

1,267

12,417

1,702

6,953

289

3,473

403

1970—O c t..
Nov..
D ec..
1971—Jan ..
F eb ..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
O c t..
N ov..

26,806
27,082
28,451
28,478
28,115
28,711
29,082
29,952
31,276
30,710
32,119
33,280
33,408
33,945

8,403
7,276
6,729
6,064
5,194
4,658
3,143
2,746
3,188
3,098
2,608
3,390
4,116
3,845

6,925
5,735
5,214
4,380
3,487
2,897
1,598
1,401
1,827
1,700
1,340
2,143
2,772
2,529

1,478
1,541
1,515
1,684
1,706
1,761
1,545
1,345
1,361
1,398
1,268
1,247
1,344
1,316

17,923
19,244
21,121
21,330
21,663
22,539
23,414
24,627
25,545
25,140
27,249
28,464
28,458
29,203

2,802
2,957
3,475
3,700
3,915
3,890
4,307
4,218
4,393
4,448
4,462
4,882
5,189
5,483

9,451
10,147
11,095
10,898
10,760
11,419
11,584
11,957
12,632
11,953
13,744
14,683
14,536
15,040

257
390
316
300
338
355
412
433
418
520
558
512
524
527

5,413
5,750
6,235
6,432
6,650
6,875
7,111
8,020
8,101
8,218
8,486
8,387
8,210
8,153

479
562
601
1,084
1,258
1,514
2,524
2,579
2,542
2,473
2,262
1,426
834
896

1969—D ec..

20,641

11,230

9,201

955

6,265

1,982

209

1970—O ct..
N ov..
D ec..
1971—Ja n ...
F e b ...
M ar..
A p r ...
M ay.
J u n e .,
J u ly ..
A ug..,
Sept...
O c t...
N o v ...

21,702
21,549
22,574
22,478
21,924
22,576
22,786
23,028
24,228
23,282
23,848
24,418
24,481
24,561

8,290
7,153
6,596
5,950
5,102
4,566
3,057
2,651
3,098
3,010
2,528
3,289
4,012
3,717

13,136
14,067
15,655
15,710
15,849
16,791
17,534
18,156
18,918
18,155
19,451
20,123
20,069
20,445

1,841
1,920
2,223
2,483
2,541
2,657
3,133
3,030
3,231
3,219
3,245
3,369
3,440
3,918

7, 951
8, 635
9, 420
9, 129
9, 043
9, 750
9, 861
10, 128
10, 674
10.031
11, 336
11,883
11,859
12,090

3,344
3,512
4,012
4,099
4,266
4,384
4,541
4,999
5,013
4,906
4,870
4,871
4,771
4,438

276
328
323
818
972
1,219
2,194
2,221
2,211
2,116
1,868
1,006
399
398

1969—D ec...

3,044

1,538

1,293

244

1,478

951

527

28

1970—O c t...
N ov..
D e c ...
1971—J a n . . .
F e b ...
M ar..
A p r...
M a y .,
J u n e ..
J u ly ..
A ug...
Sept...
O c t...
N o v .1

4,194
4,200
4,731
4,663
4,561
4,755
5,245
5,347
5,733
6,022
5,925
6,213
6,586
7,267

990
1,056
1,119
1,135
1,072
879
935
773
839
890
728
855
897
1,037

500
493
455
396
283
162
169
113
203
267
139
219
246
227

491
563
664
739
789
718
766
660
635
623
589
636
651
810

3,141
3,084
3,554
3,324
3,286
3,605
3,641
3,880
4,212
4,403
4,573
5,010
5,580
6,088

1,972
1,813
2,096
1,916
1,721
1,994
1,918
2,038
2,317
2,337
2,564
2,906
2,996
3,155

1,168
1,271
1,458
1,408
1,565
1,611
1,723
1,843
1,895
2,066
2,009
2,104
2,584
2,934

63
60
58
205
203
271
669
694
683
729
624
348
109
141

PRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 89

21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)
To foreigners

Total

Other
branches
of
parent
bank

Other
banks

N on­
Offi­
cial
bank
insti­
for­
tutions eigners

3,354 20,491

36.

32,316

44.
45;
c47.
47,
47,
c48,
49,
50,
52,
52,
54,
56,
57,
58,

39,964
40,824
42,746
42,981
43,196
44,069
45,066
45,891
48,342
47,934
49,622
51,838
52,432
53,673

29,

26,341

2,130 17,793

33,
34,
36,
35,
35,
36,
36,
37,
39,
38,
39,
40,
40,
40,

30,480
31,092
32,446
32,216
32,073
32,891
33,717
33,638
35,782
34,571
35,406
36,340
36,287
37,176

3,597
3,910
4,028
4,356
4,874
5,052
5,644
5,469
5,793
5,433
5,735
6,203
6,113
6,479

19,147
19,010
19,807
19,522
18,243
18,722
18,717
19,120
20,610
20,192
20,340
20,990
20,805
21,124

24,

21,920

1,222

14,954

26,
27,
28,
28,
28,
28,
29,
29,
31,
30,
32,
33,
33,
33,

24,759
25,072
26,520
26,542
26,103
26,597
26,989
27,667
29,021
28,264
29,429
30,877
31,009
31,513

2,021
2,166
2,320
2,358
2,641
2,586
2,699
2,843
2,931
2,762
3,069
3,344
3,250
3,106

15,818
15,737
16,533
16,817
15,588
15,942
15,698
16,387
17,578
16,843
17,310
18,431
18,535
18,901

5,571
5,960
6,372
6,839
7,444
7,507
8,078
8,134
8,553
8,345
8,792
9,463
9,739
10,038

23,695
23,724
24,820
24,840
23,710
24,175
24,118
25,039
26,729
26,545
27,178
28,507
28,529
29,354

Other

M onth-end

1,856

6,614

1,537 ............ 1969—Dec.

3,335
3,429
4,180
4,258
4,764
5,006
5,554
5,216
5,339
5,373
5,450
5,469
5,574
5,749

7,363
7,711
7,374
7,044
7,278
7,381
7,316
7,502
7,721
7,670
8,203
8,400
8,590
8,531

1,477 .............1970—Oct.
1,715
1,949
1,642 ............ 1971—Jan.
1,638 ......................... Feb.
1,556
1,824
1,802
1,798
1,716
1,857
2,047
2,069
2,066

1,566

4,851

1,017

2,892
2,995
3,737
3,818
4,206
4,323
4,743
4,419
4,604
4,416
4,375
4,407
4,502
4,662

4,843
5,177
4,874
4,513
c4 ,749
4,794
4,612
4,630
4,775
4,530
c4 ,956
4,741
4,867
4,910

888 ............ 1970—Oct.
1,058
1,225
976
944 ......................... Feb.
909
972
1,063
1,041
965 ......................... July
1,104
1,173
1,136
1,175

1,235

4,510

639 ............ 1969—Dec.

2,454
2,574
3,119
3,067
3,337
3,615
4,067
3,873
3,967
4,034
4,268
4,318
4,447
4,622

4,515
4,646
4,548
4,300
4,538
4,454
4,525
4,565
4,545
4,625
4,782
4,785
4,777
4,885

516
604
592
522
589
581
601
694
690
674
691
745
772
814

IN U NITED K IN G D O M
. . .Total, all currencies

............ 1970—Oct.
.............1971—Jan.
......................... Feb.

......................... July

18,916

868 13,302

1,073

3,673

411 ............ 1969—Dec.

21,
21,
23.
22:
22;
22;
22.
23:
24!
23:
24!
24;
24!
25;

20,185
20,305
21,495
21,156
20,539
20,954
21,249
21,378
22,682
21,428
22,095
22,882
22,875
23,166

1,375 13,251
1,455 13,044
1,548 13,684
1,540 13,718
1,707 12,531
1,759 12,754
1,900 12,640
1,902 12,967
2,053 14,071
1,819 13,198
1,900 13,445
2,126 14,160
2,095 14,079
2,028 14,185

2,198
2,295
2,859
2,816
3,001
3,207
3,588
3,368
3,493
3,382
3,501
3,555
3,660
3,813

3,361
3,510
3,404
3,081
3,301
3,233
3,121
3,142
3,065
3,029
3,249
3,041
3,041
3,140

260
311
302
283
287
289
299
365
361
361
377
400
417
426

3:

2,718

124

1,957

637

4
4
4
4
4
4
5
5
5
6
5
6
6
7

3,705
3,782
4,117
4,114
4,121
4,171
4,681
4,633
5,221
5,197
5,155
5,384
5,830
3,947

212
278
435
705
840
681
1,087
991
1,013
1,125
1,005
931
1,083
1,144

2,706
2, 543
2,863
2, 568
2,452
2,575
2,706
2, 744
3,095
3, 139
3,029
3,385
3,555
109

786
960
819
841
830
915
888
898
1,113
933
1,121
1,069
1,191




IN ALL FO R EIG N COUNTRIES
. . . Total, all currencies

.Payable in U.S. dollars

20,

.Payable in U.S. dollars

.............1970—Oct.
............ 1971—Jan.
......................... Feb.

......................... July
.........................Oct.

33 ............ 1969—Dec.
62
65
72
59
58
51
62
68
67
69
74
90
109

Location and currency form

............ 1970—Oct.
............ 1971—Jan.
......................... Feb.

......................... July

IN T H E BAHAMAS
. . . Total, all currencies

A 90

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972

22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES
AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S.
GOVERNMENT SECURITIES

23. MATURITY OF EURO-DOLLAR
DEPOSITS IN FOREIGN
BRANCHES OF U.S. BANKS

(Amounts outstanding; in millions o f dollars)

(End o f m onth; in billions o f dollars)

Liabili­
Wednesday
ties1

Wednesday

1,879
1,951
3,472
4,036

3 0 . .. .
2 9 . .. .
2 8 . .. .
2 8 . .. .
1967

M ar.
June
Sept.
Dec.

M ar.
June
Sept.
Dec.

2 5 . ..
2 4 . ..
3 0 ...
3 0 ...

2 9 . .. .
2 8 . .. .
27___
2 7 . .. .

3,412
3,166
4,059
4,241

27...............
26...............
25...............
31 (1/1/69)

4,920
6,202
7,104
6,039

Jan.
Feb.
M ar.
Apr.
M ay
June
July

Oct.

6 ...
1 3 ...
2 0 . ..
2 7 . ..
Nov. 3 . . .
1 0 ...
1 7 ...
24. ..

11,885
12,172
9,663
7,676

2 7 . ..
2 4 . ..
3 1 ...
2 8 . ..
2 6 . ..
3 0 ...
28. ..

6,536
5,666
2,858
2,158
1,579
1,492
1,495

7,536
6,666
4,358
5,166
4,587
4,500
4,645

Aug. 4. ..
11. ..
1 8 ...
25. ..

1,905
1,110
1,376
1,405

5,055
4,296
4,562
4,075

Sept. 1. ..
8. ..
15. ..
22. ..
2 9 . ..

1,233
1,239
1,701
2,153
2,475

3,403
3,409
3,355
3,807
3,578

1969
M ar.
June
Sept.
Dec.

26...............
25...............
24...............
31...............

9,621
13,269
14,349
12,805

Wednesday

Liabili­
ties1

Liab.
plus
sec.2

1971

M aturity of
liability

1972

Nov.

Dec.

Jan.

1.49
1.73

1.86
1.52

1.48
2.02

9.33 11.20
6.26 4.75
3.67 3.85
1.94 2.15
2.00 2.15
1.96
1.71
.30
.46
.44
.27
.24
.29
.25
.29
.29
.24
.21
.25

8.35
5.28
4.53
2.55
2.04
2.17
.31
.30
.35
.26
.36
.39

1971—Cont.

1971

1968
M ar.
June
Sept.
Dec.

Liab.
plus
sec.2

1970

1966
M ar.
June
Sept.
Dec.

Liabili­
ties1

3,325
3,275
3,153
2,917
2,467
2,964
3,358
3,342
2,408
1,867
1,386
1,544
909

C a ll.......................................
Other liabilities, m aturing
in following calendar
m onths after report
date;

1 . ..
8 ...
1 5 ...
2 2 ...
2 9 ...

2,222
2,723
2,601
2,917
2,467
2,964
3,358
3,342
2,408
1,867
1,386
1,544
909

1972
Jan.
5 ...
1 2 ...
1 9 ...
2 6 ...
Feb. 2 . ..
9 ...
1 6 ...
2 3 ...
Mar. 1 ...
8 ...
1 5 ...
2 2 ...
2 9 ...

1,208
1,721
1,568
1,419
1,301
1,062
1,006
1,068
954
1,164
1,263
1,346
1,526

1,208
1,721
1,568
1,419
1,301
1,062
1,006
1,068
954
1,164
1,263
1,346
1,526

11th.................................
12th.................................
Maturities; o f m ore than 1

Dec.

3rd.................................
5th.................................
6th.................................
7th.................................
8th.................................
9th.................................

.87

.82

.92

30.99 31.80 31.32
N o t e . —Includes interest-bearing U . S . dollar
deposits and direct borrowings o f all branches in
the Bahamas and o f all other foreign branches
for which such deposits and direct borrowings
am ount to $50 million or more.
Details may not add to totals due to rounding.

1 Represents gross liabilities o f reporting banks to their branches in foreign countries.
2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro­
dollar Series and special Export-Im port Bank securities held by foreign branches. Beginning
July 28, 1971, all o f the securities held are U.S. Treasury Certificates Eurodollar Series.

25. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS

24. DEPOSITS, U.S. GOVT. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT

(Amounts outstanding; in millions o f dollars)

(In millions of dollars)

End of
period

Payable in
Payable in dollars foreign currencies

Assets ir custody
End of
period

Deposits
U.S. Govt,
securities1

Earmarked
gold

1969...............
1970...............

134
148

7,030
16,226

12,311
12,926

1971—M a r...
A p r.. .
M a y ..
J u n e ..
J u ly ...
A ug...
S e p t...
O c t.. .
N ov. .
D e c.. .

201
162
208
199
162
122
166
135
177
294

20,534
22,879
28,126
26,544
28,574
35,914
36,921
38,207
39,980
43,195

13,057
13,095
13,447
13,509
13,559
13,821
13,819
13,819
13,820
13,815

1972—J a n ....
Feb. ..
M a r...

147
137
191

44,359
45,699
46,837

13,815
14,359
14,321

1 M arketable U.S. Treasury bills, certificates o f in­
debtedness, notes, and bonds and nonm arketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
N o t e . —Excludes

deposits and U.S. G ovt, securities
held for international and regional organizations. Ear­
marked gold is gold held for foreign and international
accounts and is not included in the gold stock o f the
United States.




1968.....................
i r\/-r\ o

1971

Jan...........
Feb..........
M ar..........
A pr..........
M ay.........
Ju n e r . . . .
Ju ly r ___
A ug.r ---Sept.r ---O c t.r ___
N o v .r . . . .
Dec..........

1972—J a n ..........

Total

Short­
Short­
term D eposits
term
D eposits invest­
invest­
ments 1
ments 1

United
King­
dom

C anada

1,638
/ l , 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
436

1,299
1,356
1,469
1,488
1,551
1,470
1,478
1,661
1,579
1,604
1,622
1,597

861
849
983
972
938
932
949
1,085
989
1,015
1,029
1,026

144
173
165
178
160
176
189
201
198
206
205
219

177
190
175
200
293
240
238
246
285
277
246
233

116
144
145
138
161
122
101
128
107
106
143
120

520
548
706
687
622
634
579
639
519
540
612
560

381
418
383
397
430
365
395
480
489
531
517
564

1,703

1,046

252

242

163

589

665

1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual m aturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2 D ata 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
d a te ; figures on the second line are comparable with those shown for the following date.
N o t e . —D ata represent the liquid assets abroad o f large nonbanking concerns in
the U nited States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the U nited States and are included in the figures shown in
Tables 26 and 27.

APRIL 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.

A 91

26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(End o f period. Am ounts outstanding; in millions o f dollars)
Liabilities to foreigners
Area and country

1970
Sept.

Claims on foreigners
1970

1971
Dec.

M ar.

June

Sept.

Sept.*

1971
Dec.

June

M ar.

Sept.P

Europe:
A ustria......................................
Belgium-Luxembourg...........
D enm ark..................................
F in lan d .....................................
F rance.......................................
Germany, Fed, Rep. o f........
G reece......................................
Ita ly ...........................................
N etherlands..............................
N orw ay ....................................
P ortugal....................................
S p ain .........................................
Sweden......................................
Switzerland..............................
Turkey.......................................
United K in g d o m ....................
Y ugoslavia...............................
O ther W estern E u ro p e .........
Eastern E u ro p e.......................

6
66
3
1
141
166
3
69
124
6
10
48
35
185
3
661
1
21
5

8
46
2
2
126
139
4
77
128
5
13
24
34
159
4
842
2
11
4

11
47
9
2
112
122
4
71
115
4
14
27
28
122
3
723
1
1
4

12
58
3
2
117
105
5
69
102
5
18
35
31
85
5
647
1
2
3

10
60
3
2
142
126
6
74
85
5
18
37
28
100
3
662
1
2
3

9
54
16
13
154
192
28
161
62
13
14
73
25
45
13
1,055
17
9
24

10
47
17
11
150
209
28
163
62
16
15
81
40
47
8
698
17
9
24

10
49
16
8
159
191
34
175
65
15
13
93
53
38
17
1,020
16
12
16

10
61
17
15
181
228
27
172
74
14
20
91
40
62
9
961
16
11
16

13
59
14
16
182
209
40
177
66
17
11
92
37
95
11
840
21
14
16

T o ta l.................................

1,556

1,628

1,422

1,304

1,366

1,977

1,652

1,997

2,027

1,928

C a n a d a ..........................................

215

221

206

193

178

703

751

715

708

783

P an am a.....................................
P e ru ...........................................
U ruguay...................................
V enezuela.................................
O ther L.A. republics.............
Bahamas and Berm uda.........
N eth. Antilles and Surinam .
O ther Latin A m erica.............

10
17
11
6
*
28
5
6
5
14
35
94
24
5

11
19
11
6
«
22
5
4
4
18
37
154
23
6

14
15
13
6
*
20
6
4
4
17
29
158
5
5

17
17
8
6
*
20
6
4
4
17
29
152
7
6

19
13
14
6
*
21
6
5
4
14
33
228
4
8

61
107
42
37
1
149
18
29
5
68
97
153
10
23

61
120
48
37
1
156
18
36
6
67
99
160
9
29

65
105
40
36
1
143
21
35
7
69
95
210
8
21

66
118
44
31
1
151
17
36
6
69
96
263
9
25

66
129
48
40
1
146
20
34
6
73
104
340
9
22

T o ta l.................................

260

320

296

293

376

799

846

855

931

1,036

Asia:
H ong K ong..............................
In d ia..........................................
Indonesia..................................
Israel.........................................
J a p a n .........................................
K orea........................................
Philippines...............................
Taiw an......................................
T h ailan d ...................................
O ther A sia...............................

8
41
7
21
135
I
7
8
4
47

9
38
9
24
144
1
7
9
4
50

8
25
5
28
165
11
7
10
4
59

8
22
6
19
158
10
7
11
3
122

9
26
11
21
177
10
6
17
4
140

19
42
14
21
314
29
32
27
13
145

17
34
21
23
323
42
30
33
11
145

19
39
20
24
349
50
31
32
12
155

25
39
21
25
372
54
56
38
13
159

25
36
24
21
411
52
43
43
16
201

T o ta l.................................

281

296

322

366

420

657

678

730

802

872

Africa:
Congo (K inshasa)..................
South A frica............................
U.A.R. (Egypt).......................
Other A frica............................

15
24
2
51

2
34
1
41

2
31
2
19

2
45
1
33

2
45
1
32

4
29
11
4$

3
30
9
50

5
32
10
53

6
38
9
67

4
38
9
70

T o ta l.................................

90

78

54

82

80

92

92

100

120

122

O ther countries:
A ustralia..................................
All o th e r..................................

74
5

75
7

81
8

81
8

68
9

70
15

80
15

86
13

82
17

85
24
109

Latin America:
A rgentina.................................
B razil.........................................
Chile..........................................
C olom bia..................................
C u b a ..........................................

1

T otal.................................

79

82

89

89

77

84

94

99

99

International and re g io n a l.. . .

*

•

*

•

1

1

1

3

4

4

G rand to tal.....................

2,482

2,626

2,389

2,327

2,498

4,314

4,114

4,499

4,692

4,854

N o t e . — Reported by exporters, im porters, and industrial and com*
mercial concerns and other nonbanking institutions in the United States.




D ata exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.

A 92

INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1972

27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Am ounts outstanding; in millions o f dollars)
Liabilities

Claims
Payable in foreign
currencies

End o f period
T otal

Payable
in
dollars

Payable
in
foreign
currencies

Total

Payable
in
dollars

D eposits with
banks abroad
in reporter’s
nam e

Other

1967—Sept........................

1,353
S 1,371
\ 1,386

1,029
1,027
1,039

324
343
347

2,555
2,946
3,011

2,116
2,529
2,599

192
201
203

246
216
209

1968— M ar........................
Ju n e .......................
Sept........................
D ec........................

1,358
1,473
1,678
1,608

991
1,056
1,271
1,225

367
417
407
382

3,369
3,855
3,907
3,783

2,936
3,415
3,292
3,173

211
210
422
368

222
229
193
241

1969—M ar........................
Ju n e .......................
Sept........................

1,576
1,613
1,797
( 1,786
j 2,095

1,185
1,263
1,450
1,399
1,654

391
350
346
387
441

4,014
4,023
3,874
3,710
4,124

3,329
3,316
3,222
3,124
3,495

358
429
386
221
244

327
278
267
365
385

1970—M ar........................
Ju n e .......................
Sept........................
D ec.........................

2,204
2,357
2,482
2,626

1,724
1,843
1,956
2,159

480
513
526
467

4,238
4,417
4,314
4,114

3,699
3,825
3,708
3,532

219
234
301
234

320
358
306
349

1971—M ar........................
Ju n e........................
Sept.*.....................

2,389
2,327
2,498

1,957
1,919
2,082

432
408
416

4,499
4,692
4,854

3,890
4,037
4,146

232
303
377

377
352
332

1 D ata on the two lines shown for this date differ
because o f 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,

28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions o f dollars)
Claims

End o f period

Country or area

Total
liabilities
Total

United
Kingdom

Other
Europe

Canada

Brazil

Mexico

Other
Latin
America

Japan

Other
Asia

Africa

All
other

1967—Sept..
D ec.1.

411
414
428

1,452
1,537
1,570

40
43
43

212
257
263

309
311
322

212
212
212

84
85
91

283
278
274

109
128
128

103
117
132

87
89
89

13
16
16

1968—M ar..
J u n e ..
Sept..
D e c ...

582
747
767
1.129

1,536
1,568
1,625
1,790

41
32
43
147

265
288
313
306

330
345
376
419

206
205
198
194

61
67
62
73

256
251
251
230

128
129
126
128

145
134
142
171

84
83
82
83

21
33
32
38

1969—M ar..,
J u n e ..
Sept..
D ec.1

1,285
1,325
1,418
1,725
2,331

1,872
1,952
1,965
2,215
2,360

175
168
167
152
152

342
368
369
433
442

432
447
465
496
562

194
195
179
172
177

75
76
70
73
77

222
216
213
388
416

126
142
143
141
142

191
229
246
249
271

72
72
71
69
75

43
40
42
42
46

1970—M ar..
J u n e ..
Sept..
D ec...

2,385
2,613
2,813
3.129

2,741
2,753
2,882
2,946

159
161
157
146

735
712
720
708

573
580
620
669

181
177
180
183

74
65
63
60

454
474
583
614

158
166
144
140

288
288
284
292

71
76
73
71

47
54
58
64

1971—M ar..
J u n e ..
Sept.*

3,196
3,190
2,922

2,979
2,990
2,899

154
151
135

688
692
675

670
677
666

182
180
175

63
64
63

611
625
583

161
138
133

302
313
319

77
75
76

72
76
74

1 D ata on the two lines shown for this date differ because o f changes
shown for the preceding d a te ; figures on the second line are comparable
in reporting coverage. Figures on the first line are comparable with those
with those shown for the following date.




APRIL 1972 □ MONEY RATES

A 93

FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)

Period

Argentina
(peso)

Australia
(dollar)

Austria
(schilling)

Belgium
(franc)

C anada
(dollar)

Ceylon
(rupee)

Denmark
(krone)

Finland
(markka)

France
(franc)

1968...................................................................
1969...................................................................
1970...................................................................
1971..................................................................

.28473
.28492
126.589
22.502

111.25
111.10
111.36
113.61

3.8675
3.8654
3.8659
4.0009

2.0026
1.9942
2.0139
2.0598

92.801
92.855
2 95.802
99.021

16.678
16.741
16.774
16.800

13.362
13.299
13.334
13.508

23.761
23.774
23.742
23.758

20.191
4 19.302
18.087
18.148

1971—F e b .......................................................

Ju ly .......................................................

24.831
24.835
24.673
24.156
23.602
22.642
20.757
19.919
19.923
19.925
19.928

112.38
112.42
112.38
112.42
112.43
112.42
113.17
114.78
115.76
115.89
117.48

3.8651
3.8670
3.8696
3 3.9676
4.0021
4.0040
4.0264
4.0844
4.1261
4.1280
4.2041

2.0148
2.0145
2.0144
2.0164
2.0109
2.0133
2.0351
2.0921
2.1353
2.1572
2.1986

99.261
99.367
99.237
99.138
97.913
97.912
98.670
98.717
99.537
99.607
100.067

16.792
16.792
16.792
16.792
16.792
16.792
16.792
16.839
16.820
16.806
16.797

13.359
13.368
13.353
13.334
13.342
13.334
13.435
13.672
13.768
13.773
13.994

23.722
23.722
23.727
23.735
23.735
23.735
23.735
23.830
23.800
23.773
23.852

18.122
18.129
18.126
18.094
18.092
18.136
18.130
18.112
18.073
18.096
18.549

1972—Jan.........................................................
Feb.........................................................

19.960
119.960

119.10
119.10
119.10

4.2516
4.3108
4.3342

2.2514
2.2810
2.2757

99.411
99.528
100.152

16.653
16.650
16.650

14.219
14.306
14.361

24.077
24.099
24.121

19.329
19.650
19.835

Germany
(Deutsche
mark)

India
(rupee)

Ireland
(pound)

Italy
(lira)

Japan
(yen)

Malaysia
(dollar)

Mexico
(peso)

N eth­
erlands
(guilder)

25.048
5 25.491
27.424
28.768

13.269
13.230
13.233
13.338

239.35
239.01
239.59
244.42

.16042
.15940
.15945
.16174

.27735
.27903
.27921
.28779

32.591
32.623
32.396
32.989

8.0056
8.0056
8.0056
8.0056

27.626
27.592
27.651
28.650

27.594
27.538
27.516
M ay............................................................................ 628.144
June............................................................................
28.474
28.728
Ju ly ............................................................................
29.277
29.794
Sept............................................................................
30.065
30.005
N ov............................................................................
30.593

13.311
13.304
13.315
13.330
13.346
13.347
13.345
13.401
13.349
13.353
13.388

241.78
241.87
241.79
241.87
241.87
241.85
243.46
246.94
249.06
249.33
252.66

.16036
.16063
.16070
.16059
.16009
.16048
.16157
.16292
.16332
.16324
.16652

.27969
.27971
.27972
.27979
.27979
.27980
.28113
.29583
.30202
.30418
.31249

32.615
32.616
32.604
32.642
32.720
32.733
32.737
33.354
33.573
33.627
34.135

8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056
8.0056

27.814
27.816
27.776
6 28.135
28.065
28.097
28.693
29.308
29.772
30.006
30.503

30.956
31.390
31.545

13.415
13.638
13.716

257.05
260.37
261.81

.16923
.17036
.17161

.31978
.32769
.33054

34.737
35.080
35.409

8.0002
8.0000
8.0000

31.072
31.468
31.384

Period

New
Zealand
(dollar)

Norway
(krone)

Portugal
(escudo)

South
Africa
(rand)

Spain
(peseta)

Sweden
(krona)

Switz­
erland
(franc)

United
K ing­
dom
(pound)

1968........................................................................................
1969........................................................................................
1970........................................................................................
1971........................................................................................

111.37
111.21
111.48
113.71

14.000
13.997
13.992
14.205

3.4864
3.5013
3.4978
3.5456

139.10
138.90
139.24
140.29

1.4272
1.4266
1.4280
1.4383

19.349
19.342
19.282
19.592

23.169
23.186
23.199
24.325

239.35
239.01
239.59
244.42

1971 _ F e b .............................................................................
M ar............................................................................
A pr.............................................................................
M ay............................................................................
June............................................................................
Ju ly ............................................................................
Aug.............................................................................
Sept............................................................................
Oct..............................................................................
N ov............................................................................
Dec.............................................................................

112.50
112.54
112.50
112.54
112.55
112.53
113.28
114.95
115.88
116.01
117.31

14.001
14.010
14.028
13.556
14.062
14.073
14.244
14.494
14.599
14.578
14.816

3.5031
3.5019
3.5000
3.5013
3.5027
3.5016
3.5289
3.5970
3.6275
3.6342
3.6494

140.51
140.56
140.51
140.56
140.57
140.55
141.46
140.88
140.43
140.40
137.22

1.4290
1.4290
1.4291
1.4291
1.4290
1.4292
1.4335
1.4415
81.4457
1.4533
1.4822

19.332
19.369
19.368
19.357
19.370
19.371
19.502
19.732
19.914
19.989
20.434

23.266
23.254
23.263
7 24.253
24.409
24.423
24.813
25.118
25.157
25.104
25.615

241.78
241.87
241.79
241.87
241.87
241.85
243.46
246.94
249.06
249.33
252.66

1972—Jan..............................................................................
Feb.............................................................................

119.36
119.39
119.29

14.913
15.029
15.161

3.6474
3.6690
3.6930

131.27
132.98
133.77

1.5162
1.5170
1.5369

20.731
20.858
20.956

25.693
25.890
25.974

257.09
260.37
261.81

Period

.........................................................

—F e b ............................................................................

Feb..............................................................................

1 A new Argentine peso, equal to 100 old pesos, was introduced on
Jan. 1, 1970. Since A pr. 6, 1971, the official exchange rate is set daily by
the Government o f Argentina. Average for Feb. 1-27,1972.
2 On June 1, 1970, the Canadian Government announced that, for the
time being, C anada will not m aintain the exchange rate o f the Canadian
dollar within the margins required by IM F rules.
3 Effective M ay 9, 1971, the A ustrian schilling was revalued to 24.75
per U.S. dollar.
* Effective Aug. 10, 1969, the French franc was devalued from 4.94 to
5.55 francs per U.S. dollar.
5 Effective Oct. 26, 1969, the new p ar value o f the German m ark was
set a t 3.66 per U.S. dollar.
6 Effective M ay 10,1971, the G erm an m ark and Netherlands guilder
have been floated.




7 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per
U.S. dollar.
8 Effective Oct. 20, 1971, the Spanish peseta was revalued to 68.455
per U.S. dollar.
N o t e . — Effective Aug. 16, 1971, the U.S. dollar convertibility to gold
was suspended; as from that day foreign central banks did not have to
support the dollar rate in order to keep it within IM F limits.
During December 1971, certain countries established central rates
against the U.S. dollar in place o f former IM F parities.
Averages o f certified noon buying rates in New Y ork for cable transfers.
For description o f rates and back data, see “ International Finance,”
Section 15 o f Supplement to Banking and Monetary Statistics, 1962.

A 94

MONEY RATES □ APRIL 1972
CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Changes during the last 12 months

R ate as o f
Jan. 31, 1971

1971

Country
Per
cent

Chile..........................................

M onth
effective

6 .0
5 .0
6 .0
20.0
5.25

Dec.
Jan.
M ar.
July
Feb.

6.5
14.0
8 .0
4 .0
8 .0

July 1969
M ay 1963
Jan. 1971
M ay
Aug.
Aug.
Apr.

1962
1964
1970
1962

6.5
6 .0
5.5
6.5
4 .0

Jan.
Dec.
M ar.
Sept.
Feb.

1971
1970
1968
1969
1966

5.25
6 .0
6 .0
8 .0
7.25

Jan.
M ay
Aug.
Jan.

1971
1969
1969
1971

5.5
6 .0
5.75
19.0
4.5

M ar.
M ay
Jan.
Dec.
June

1970
1969
1971
1970
1942

5 .0
9.5
10.0
3.75
6.5
6.25
6.5
3.75
9 .8
5.0
5 .0
9 .0
7 .0
5 .0
18.0

M ay

June

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

M ar.

18.0
5.5

5 .0

4.5

4 .0

4.75
8 .0

8.50
5 .0

6.75

6.5
4.5

8.0

6.19

6.06

6.00

5.94

6.12

5.12

5 .0
5.5

7.0
5.12

4 .0

4.94

7.75

8 .0
5 .0
4 .0
6.50
7.75

6 .0

6 .0
3.0
8.0
6.5
4 .0

3.0

5.25
6 .0
6.0
7 .0
4.81

4.81

4.81
5.0
4.75

5.25
16.0

4.5
5 .0
4.75
13.0
4.5

13.0

Nov. 1951
5.5

5 .0

Mar. 1961

4.5

Sept. 1969

Feb. 1971
M ar 1971
1971
1971
1969
1970
1959

Sept.
Sept.
Apr.
Oct
Sept.

1966
1970
1970
1970
1970

4 .0

3.50
4 .0
7 .0
4.50
4.5
5 .0
9.5
10.0
3.75
6.5

Nov. 1959

Jan.
M ar.
Sept.
Dec.
Oct.

18.0
5 .0
4 .0
20.0
4.75

7 .0

4.5
5 .5

R ate
as of
M ar. 31,
1972

6.5
7 .0
8 .0
4 .0
7 .0

7 .0

7 .5

6 0
6 .0

5 .0
5.5
9.25

6 .0

N o t e . — Rates shown are mainly those at which the central bank either
discounts o r makes advances against eligible commercial paper and/or
govt, securities for commercial banks o r brokers. F o r countries with
more than one rate applicable to such discounts o r advances, the rate
shown is the one at which it is understood the central bank transacts
the largest proportion o f its credit operations. Other rates for some
o f these countries follow:
Argentina— 3 and 5 per cent for certain rural and industrial paper, de­
pending on type o f 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 o f 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.




July

1957
1970
1971
1969
1971

8 .0
5 .0
4 .0
6.50
7 .0

3.50
6 .0
7 .0
4 .5 0
4.5

Apr.

1972

5 .0

5 .0

5 .0
5.0
3.75
9.25
5.0
5 .0
9 .0
5 .0
5 .0
18.0

Honduras—R ate show n is for advances only.
Indonesia—Various rates depending on type o f paper, collateral, com­
modity involved, e tc .;
Japan—Penalty rates (exceeding the basic rate shown) for borrowings
from the central bank in excess o f an individual bank’s quota;
Morocco—Various rates from 3 per cent to 4.6 per cent depending on type
o f paper, maturity, collateral, guarantee, etc.
Peru— 3.5, 5, and 7 per cent for small credits to agricultural or fish produc­
tion, im port substitution industries and manufacture o f exports; 8 per
cent for other agricultural, industrial and mining paper;
Philippines—6 per cent for financing the production, im portation, and dis­
tribution o f rice and corn and 7.75 per cent for credits to enterprises en­
gaged in export activities. Preferential rates are also granted on credits to
rural b an k s; and
Venezuela—2 per cent for rediscounts o f certain agriculture paper, 4Vi
per cent for advances against government bonds, and 5 Vi per cent for
rediscounts o f certain industrial paper and on advances against promissory
notes or securities o f 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 o f 24 per cent for banks whose loans exceed quan­
titative ceilings.

APRIL 1972 □ MONEY RATES; ARBITRAGE

A 95

OPEN MARKET RATES
(Per cent per annum)
U nited Kingdom

C anada
M onth

Prime
Treasury
Treasury Day-tobank
bills,
bills,
day
3 months
3 m o n th s1 money 2 3 mbills,
onths3

Germany,
Fed. R ep. of

France

N etherlands

Switzer­
land

Day-today
money

Clearing
banks’
deposit
rates4

Day-today
m oney5

Treasury
bills,
60-90
days6

Day-today
money?

Treasury
bills,
3 m onths

D ay-today
money

Private
discount
rate

1970.........................
1971.........................

6.12
3.62

6.22
3.76

8.26
6.41

6.70
5.57

5.73
4.93

5.23
3.84

8.67

6.54
4.54

8.67
6.10

5.97
4.34

6.47
3.76

5.14
5.24

1971—M ar..............
A pr...............
M ay.............
Ju n e .............
Ju ly ..............
Aug..............
Sept..............
O ct...............
N ov..............
D ec...............

3.30
3.04
3.06
3.15
3.58
3.88
3.93
3.79
3.31
3.25

3.48
2.65
2.76
3.01
3.64
3.94
4.16
4.16
3.60
3.63

8.06
7.06
7.06
6.74
6.42
5.99
3 5.42
8 4.90
4.74
4.42

6.66
5.75
5.65
5.60
5.57
5.75
4.83
4.63
4.48
4.36

6.12
5.15
5.36
4.71
5.0 0
5.05
4.39
4.29
3.75
3.46

5.00
4.00
4.00
4.00
4.00
4.00
4 3.00
2.88
2.70
2.50

5.77
5.53
5.84
6.45
5.62
5.69
5.99
5.95
5.51
5.28

5.75
4.75
4.75
4.25
4.25
4.25
4.25
3.75
3.75
3.25

7.36
4.23
2.31
6.95
6.33
6.18
7.01
7.50
4.58
5.78

4.49
3.59
3.88
4.39
4.03
4.24
4.34
4.47
4.06
3.90

3.27
1.13
1.84
2.91
2.69
5.53
3.80
5.35
3.79
4.91

5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.25
5.12

1972—Jan ...............
Feb
.

3.29
3.48
3.51

3.71
3.79
3.70

4.48
4.85
4.77

4.36
4.37
4.34

3.94
4.43
4.58

2.50
2.50
2.50

5.31

3.25
2.75

4.20
4.15

3.61
3.19
2.26

4.44
3.38
0.98

5.00
5.00

1 Based on
2 Based on
3 D ata for
months.
4 D ata for
deposits.

average yield o f weekly tenders during month.
weekly averages o f daily closing rates.
1968 through Sept. 1971 are for bankers’ acceptances, 3
1968 through Sept. 1971 are for bankers’ allowance on

5 R ate shown is on private securities.
6 Rate in effect at end o f m onth.
7 M onthly averages based on daily quotations.
8 Bill rates in table are buying rates for prim e paper.
N o t e . —For description and back data, see “ International Finance,
Section 15 of Supplement to Banking and Monetary Statistics, 1962.

ARBITRAGE ON TREASURY BILLS
(Per cent per annum)
U nited States and U nited Kingdom

U nited States and C anada

Treasury bill rates
D ate

Treasury bill rates

U nited
K ingdom
(adj. to
U.S.
quotation
basis)

United
States

Spread
(favor
of
London)

Premium
( + ) or
discount
( - ) on
forward
pound

N et
incentive
(favor
of
London)

C anada
As
quoted
in
Canada

Adj. to
U.S.
quotation
basis

United
States

Spread
(favor
of
C anada)

Premium
( + ) or
discount
( - ) on
forward
C anadian
dollars

Net
incentive
(favor
of
Canada)

1971
Oct.

1 ..........
8 ...............
15...............
2 2 ...............
2 9 ...............

4.77
4.73
4.63
5.53
4.53

4.52
4.45
4.35
4.38
4.30

.25
.28
.28
1.15
.23

1.88
1.97
1.93
.44
- .6 6

2.13
2.25
2.21
1.59
-.4 3

4.05
4 .00
3.92
3.71
3.47

3.95
3.81
3.83
3.63
3.39

4.52
4.45
4.35
4.38
4.30

-.5 7
-.5 4
- .5 2
-.7 5
-.9 1

.75
.42
.26
.04
.04

.18
-.1 2
-.2 6
-.7 1
- .8 7

Nov.

5 ...............
12...............
19...............
2 6 ...............

4.51
4.51
4.49
4 .4 7

4.06
4.11
4.06
4.36

.45
.40
.43
.11

.26
.48
1.09
2.13

.71
.88
1.52
2.24

3.35
3.31
3.33
3.30

3.28
3.24
3.26
3.23

4.06
4.11
4.06
4.36

- .7 8
-.8 7
-.8 0
- 1 .1 3

.12
.24
.44
.60

-.6 6
-.6 3
-.3 6
- .5 9

Dec.

3 ...............
10...............
17...............
2 4 ...............
3 1 ...............

4.29
4.19
4.35
4.41
4.41

4.21
4.01
3.98
3.78
3.70

.08
.18
.37
.63
.71

2.56
1.75
2.37
1.10
.81

2.64
1.93
2.74
1.73
1.52

3.40
3.30
3.17
3.18
3.20

3.33
3.23
3.10
3.09
3.14

4.21
4.01
3.98
3.78
3.70

- .8 8
- .7 8
- .8 8
- .6 9
- .5 6

.58
.62
.64
.56
.72

-.3 0
-.1 6
- .2 4
-.1 3
.16

1972
Jan.

7 ...............
1 4 ...............
2 1 ...............
2 8 ...............

4.32
4.29
4.31
4.29

3.45
3.09
3.29
3.34

.87
1.20
1.02
.95

.93
1.76
.61
-.0 6

1.80
2.96
1.63
.89

3.33
3.24
3.24
3.38

3.26
3.17
3.17
3.31

3.45
3.09
3.29
3.34

-.1 9
.08
- .1 2
-.0 3

.52
.40
.32
.20

.33
.48
.20
.17

Feb.

4 ...............
11...............
18...............
2 5 ...............

4.29
4.32
4.32
4.31

3.24
2.89
2.97
3.22

1.05
1.43
1.35
1.09

- .1 3
- .2 8
- .4 4
-.3 7

.92
1.15
.91
.72

3.55
3.43
3.48
3.47

3.46
3.35
3.40
3.39

3.24
2.89
2.97
3.22

.22
.46
.43
.17

-.0 8
-.4 8
- .9 2
- 1 .0 0

.14
-.0 2
-.4 9
-.8 3

Mar.

3 ...............
10...............
17...............
2 4 ...............
31...............

4.30
4.29
4.29
4.27
4.26

3.40
3.53
3.78
3.69
3.80

.90
.76
.51
.58
.46

-.4 0
.15
.07
. 12
-.1 1

.50
.91
.58
.70
.35

3.41
3.40
3.56
3.61
3.55

3.38
3.33
3.48
3.53
3.47

3.40
3.53
3.78
3.69
3.80

- .0 2
- .2 0
- .3 0
-.1 6
- .3 3

-1 .0 8
-1 .2 8
-.7 6
-.7 6
-.7 6

-1 .1 0
-1 .4 8
-1 .0 6
- .92
-1 .0 9

N o t e . — Treasury bills: All rates are on the latest issue o f 91-day bills.
U.S. and C anadian rates are m arket offer rates 11 a.m. Friday; U.K.
rates are Friday opening m arket offer rates in London.
Premium or discount on forward pound and on forward Canadian dollar:
Rates per annum computed on basis o f 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 C anadian dollars.




All series: Based on quotations reported to F.R . Bank of New Y ork
by market sources.
For description o f series and for back figures, see Oct. 1964 B u l l e t i n ,
pp. 1241-60. For description o f adjustments to U .K . and C anadian
Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260,
Oct. 1964 B u l l e t i n .

A 96

GOLD RESERVES □ APRIL 1972
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
(In millions o f dollars)

End o f
period

Esti­
mated
total
world 1

Intl.
M one­
tary
Fund

United
States

Esti­
mated
rest o f
world

Algeria

Argen­
tina

1965............................
1966............................
1967............................
1968............................
1969............................
1970............................

243,230
43,185
41,600
40,905
41,015
41,275

31,869
2,652
2,682
2,288
2,310
4,339

13,806
13,235
12,065
10,892
11,859
11,072

27,285
27,300
26,855
27,725
26,845
25,865

6
6
155
205
205
191

66
84
84
109
135
140

223
224
231
257
263
239

700
701
701
714
715
714

4,400
4,404
4,338
4,448
4,523
4,479
4,695
4,722
4,724
4,726
4.732

11,039
10,963 25,875
10,925
10,568
10,507 26,220
10,453
10,209
10.207 26,280
10.207
10,206
10,206 *>26,270

191
191
191
191
191
192
192
192
192
192
192

140
140
140
140
140
140
140
140
140
140
90

240
239
253
254
254
259
259
259
259
259
259

4.732
5,303

10,206
9,662

192

90

260

D en­
m ark

Fin­
land

France

Ger­
many,
Fed.
Rep. of

Greece

1971--F eb ..................
41,240

July.................

41,250
41,210
^41,210

1972F eb .* ..............

End o f
period

1965
1066
1967............................
1968............................
1969............................
1 9 7 0 .................................

1971- Feb..................

Ju ly.................

C o­
lombia

India

Aus­
tria

Bel­
gium

Brazil

Burma

Canada

1,558
1,525
1,480
1,524
1,520
1,470

63
45
45
45
45
45

84
84
84
84
84
63

1,151
1,046
1 015
863
872
791

44
45
45
46
47
47

714
714
728
747
747
746
752
722
722
722
729

1,468
1,466
1,502
1,592
1,584
1 600
1,584
1,572
1,564
1,564
1.544

45
45
46
46
46
46
46
46
46
46
46

42
42
42
22
22
22
22
22
22
22
22

791
791
791
792
792
792
792
792
792
792
792

47
47
47
47
47
47
47

729
729

1.544
1.544

46

22
21

792
792

Iran

Iraq

Ire­
land

Israel

Italy

Chile

Japan

35
26
31
31
26
17

97
108
107
114
89
64

84
45
45
45
45
29

4,706
5,238
5,234
3,877
3,547
3,532

4,410
4,292
4,228
4,539
4,079
3,980

78
120
130
140
130
117

281
243
243
243
243
243

146
130
144
158
158
131

110
106
115
193
193
144

21
23
25
79
39
16

56
46
46
46
46
43

2,404
2,414
2,400
2,923
2,956
2,887

328
329
338
356
413
532

17
16
16
16
16
16
14
14
14
14
14

64
64
64
64
64
64
64
64
64
64
64

29
29
29
29
29
29
49
49
49
49
49

3,531
3.527
3.527
3,523
3,523
3.523
3.523
3.523
3.523
3.523
3.523

3,978
3,977
4,029
4,035
4,046
4,077
4,076
4.077
4.077
4.077
4.077

99
99
99
99
99
99
99
98
98
98
98

243
243
243
243
243
243
243
243
243
243
243

131
131
131
130
131
131
131
131
131
131
131

144
144
143
143
143
143
143
143
143
143
144

16
16
16
16
16
16
16
16
16
16
16

43
43
43
43
43
43
43
43
43
43
43

2,885
2,884
2.884
2.884
2,884
2.884
2.884
2.884
2.884
2.884
2.884

534
539
636
641
641
670
679
679
679
679
679

14
14

64
64

49
49

3.523
3.523

4.077
4,077

98
99

243
243

131
131

144
144

16
16

43

2.884
2.884

679
711

M alay­
sia

Mexi­
co

M oroc­
co

N ether­
lands

Philip­
pines

P ortu­
gal

Saudi
A rabia

1972-

End o f
period

Aus­
tralia

K uwait

Leb­
anon

Libya

N o r­
way

Paki­
stan

Peru

1965............................
1966............................
1967............................
1968............................
1969............................
1970............................

52
67
136
122
86
86

182
193
193
288
288
288

68
68
68
85
85
85

2
1
31
66
63
48

158
109
166
165
169
176

21
21
21
21
21
21

1,756
1,730
1,711
1,697
1,720
1,787

31
18
18
24
25
23

53
53
53
54
54
54

67
65
20
20
25
40

38
44
60
62
45
56

576
643
699
856
876
902

73
69
69
119
119
119

1971—Feb..................
M ar.................
A pr..................
M ay................
Ju n e................
Ju ly.................
Aug.................
Sept.................
O ct..................
N ov.................
D ec..................

86
86
86
87
87
87
87
87
87
87
87

322
322
322
322
322
322
322
322
322
322
322

85
85
85
85
85
85
85
85
85
85
85

48
48
48
53
58
58
58
58
58
58
58

176
176
182
182
182
184
184
184
184
184
184

21
21
21
21
21
21
21
21
21
21
21

1,812
1,812
1,863
1,867
1,867
1,888
1,889
1,889
1,889
1,889
1,909

23
23
31
32
32
34
34
34
34
34
33

54
54
54
54
55
55
55
55
55
55
55

40
40
40
40
40
40
40
40
40
40
40

59
60
61
62
63
64
65
66
67
67
67

902
902
902
902
902
895
907
911
911
918
921

119
119
119
119
119
119
127
127
127
128
128

1972__Jan..................
Feb.?..............

87
87

322
322

85
86

58
58

21

1,908
1,908

33
33

55
55

68
68

921
921

128
127

F o r notes see end o f table.




APRIL 1972 □ GOLD RESERVES AND PRODUCTION

A 97

GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued
(In millions o f dollars)

South
Africa

End o f
period

Spain

Sweden

Switzer­ Taiwan
land

Thai­
land

Turkey

U.A.R.
(Egypt)

United
King­
dom

U ru­
guay

Vene­
zuela

Yugo­
slavia

Bank
for
Intl.
Settle­
ments 4

425
637
583
1,243
1,115
666

810
785
785
785
784
498

202
203
203
225
226
200

3,042
2,842
3,089
2,624
2,642
2,732

55
62
81
81
82
82

96
92
92
92
92
92

116
102
97
97
117
126

139
93
93
93
93
85

2,265
1,940
1,291
1,474
1,471
1,349

155
146
140
133
165
162

401
401
401
403
403
384

19
21
22
50
51
52

-5 5 8
-4 2 4
-6 2 4
-3 4 9
-4 8 0
-2 8 2

1971—Feb..
M ar..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept..
O c t...
Nov..
Dec..

632
634
630
630
551
481
486
479
460
443
410

498
498
498
498
498
498
498
498
498
498
498

200
200
200
200
200
200
200
200
200
200
200

2,731
2,806
2,806
2,807
2,857
2,909
2,909
2,909
2,909
2,909
2,909

82
82
84
82
82
82
81
81
80
80
80

82
82
81
81
81
81
81
82
82
82
82

126
127
127
127
127
127
127
127
127
122
130

85
85
85
85
85
85
85
85
85
85
85

1,224
1,123
1,022
905
804
803
778
778
778
778
775

162
162
152
152
151
148
148
148
148
148
148

384
384
389
389
389
391
391
391
391
391
391

32
32
52
52
52
52
52
52
52
'51
r51

-1 7 3
-7 3
13
118
213
225
210
215
227
249
310

1972—J a n ...
Feb.*

403
405

498
498

200
200

2,909
2,909

80
80

82
82

130
130

85

196
196
196
196
196
197

5
6
7
8
9
0

1 Includes reported o r estim ated gold holdings o f international and
regional organizations, central banks and govts, o f countries listed in
this table and also o f a num ber not shown separately here, and gold to be
distributed by the Tripartite Commission for the R estitution o f M onetary
G old; excludes holdings o f the U.S.S.R., other Eastern European coun­
tries, and C hina M ainland.
The figures included for the Bank for International Settlements are
the Bank’s gold assets net o f gold deposit liabilities. This procedure
avoids the overstatement o f total world gold reserves since m ost o f the
gold deposited with the BIS is included in the gold reserves o f individual
countries.
2 Adjusted to include gold subscription payments to the IM F made by

391
391

332
333

some member countries in anticipation o f increase in Fund quotas, except
those matched by gold mitigatiori deposits with the United States and
U nited K ingdom ; adjustm ent is $270 million.
3 Excludes gold subscription payments m ade by some member countries
in anticipation o f increase in Fund q u o ta s: for m ost o f these countries
the increased quotas became effective in Feb. 1966.
4 N et gold assets o f BIS, i.e., gold in bars and coins and other gold
assets minus gold deposit liabilities.
N o t e .— F or back figures and description o f the data in this and the
following tables on gold (except production), see “ G old,” Section 14 o f
Supplement to Banking and M onetary Statistics, 1962.

GOLD PRODUCTION
(In millions o f dollars a t $35 per fine troy ounce)
Africa
Period

1965..
1966..
1967...
1968..
1969..
1970*.

W orld
produc­
tion 1

1 .4 4 0 .0
1 .4 4 5 .0
1.410.0
1.4 2 0 .0
1.4 2 0 .0
1 .4 5 0 .0

South
Africa

G hana

1,0 6 9 .4
1,080.8
1.068.7
1,088.0
1.090.7
1,1 2 8 .0

26.4
24.0
26.7
25.4
2 4 .8
24.8

N orth and South America
Congo
(K in­
shasa)
2 .3
5 .6
5 .4
5.9
6 .0

6. 2

United
States

Can­
ada

Mex­
ico

5 8 .6
63.1
5 3 .4
53.9
60.1
63.5

125.6
114.6
103.7
94.1
89.1
84.3

7.6
7.5
5.8
6.2
6.3
6 .9

7 .0

Asia

Nica­ Colom ­ India
ragua
bia

5 .4
5 .2
5.2
4 .9
3.7
3.8

1 1 .2

9 .8
9 .0
8 .4
7.7
7.1
.4

1971— Tan..
Feb..
M a r ..
A pr..
M ay.
June.
J u ly ..
Aug..
Sept.
O c t..
N o v ..
D ec..

91.3
89.6
94.3
91.9
91.5
9 2 .0
9 3 .4
92.3
91.3
9 3 .4
91.7
85.7

6 .6

.6

6.7
6.5
6.7
6.7
5.8
6.3
6.1
6.3

.5
.5
.5
.1
1.1
.6
.6

1972—J a n ..

87.8

6. 0

i
Estim ated; excludes U.S.S.R., other Eastern European countries,
C hina M ainland, and N o rth Korea.




6.6

5.9

.6
.6

O ther

Japan

Philip­
pines

Aus­
tralia

All
other

4 .6
4 .2
3 .4
4 .0
3.4
3.7

18.1
19.4
23.7
21.5
23.7
24.8

15.3
15.8
17.2
18.5
20.0
21.1

30.7
32.1
28.4
27.6
24.5
21.7

64.8
62.9
59.4
61.6
60.0
54.1

.4
.4
.4
.4
.3
.4
.4

2 .2

2.3
2 .4
2.2
1.6
2 .4
2 .4
2 .4
2 .4
2.1

A 98

BANKS AND BRANCHES □ APRIL 1972
NUMBER IN OPERATION ON DECEMBER 31, 1971
Commercial and m utual savings banks

N um ber m aintaining branches or additional offices1
Commercial

Commercial
M utual
savings

State

M em ber

Total

Total

N onmember

Total
In ­
sured

N on­
in­
sured

14,273 13,784 4,600 1,128 7,875

181

N a­
tional
United States 2..........

State

326

..

N a­
tional

163 4,444 4,132 1,688

273
13
13
253
152

273
11
13
253
152

88
5
3
69
57

C o lo ra d o ....................
C onnecticut...............
D elaw are....................
D istrict o f Columbia
F lo rid a ........................

278
131
20
14
540

278
63
18
14
540

122
26
5
11
230

G eorgia.......................
H aw aii........................
Id a h o ...........................
Illinois.........................
In d ia n a .......................

434
10
24
1,134
412

434
10
24
1,134
408

60
1
7
415
122

Io w a ............................
K a n sa s ........................
K entucky....................
L ouisiana...................
M ain e ..........................

666
603
343
235
76

666
603
343
235
44

99
171
80
49
19

49
28
14
10

M ary lan d ...................
M assachusetts...........
M ichigan....................
M innesota..................
M ississippi.................

117
328
331
732
183

112
158
331
731
183

39
84
104
198
38

7
14
101
25
7

56
124
505
138

M issouri.....................
M ontan a.....................
N eb rask a....................
N evada........................
New H a m p sh ire.. . .

672
144
443
8
104

672
144
443
8
74

98
52
125
4
48

71
40
10
1
1

497
51
303
3
23

96
9
43

96
9
43

6

6

41

32

New Jersey.................
New M exico..............
New Y o rk ..................
N o rth C aro lin a.........
N orth D a k o ta ...........

231
68
431
95
169

211
68
311
95
169

120
33
166
23
42

33
7
73
1
4

56
28
46
70
120

180
52
290
65
52

O h io ............................
O klah o m a..................
O rego n ........................
Pennsylvania.............
R hode Islan d.............

515
437
47
462
20

514
437
46
454
13

218
197
8
286
5

118
16

176

222

2
2
2

23

36
138
6

2

South C arolina.........
South D a k o ta ...........
Tennessee...................
T exas...........................
U ta h ............................

99
159
310
1,215
50

99
159
310
1,215
50

19
32
77
530
9

V erm ont.....................
Virginia.......................
W ashington ...............
W est Virginia............
W isconsin...................

48
245
101
199
614

42
245
92
199
611

26
101
24
86
126

W yom ing...................
Virgin Islan d s...........

71

71

42




165
5
9
170
78
95
33
11
2

6

45
7
33
40

48
5

N on­
in­
sured

In­
sured

N on­
in­
sured

454 1,971

19

224

88

5

20

11

46
9
13
1

22
2
10

135
8
14
116

36
1
5

42
2

7
46
57

2

20

13
1

In ­
sured

State

36
50

93

13

7
21
5
2

1
91

11
638

222

135
8
14
116
200

200

74

510
403
245
175
15

219
71
143
136
51

219
71
143
136
33

42
33
45
38
16

16
7

66

76
217
197
13
115

71

28
64
73
3
33

6

14
65
1
5

24
3
25
3
24

15
4
1
1
1

57

168
52
191
65
52

103
26
104

28
5
53

37

21

12

26
44
39

99

291

291

59

80

66

66

32
258
20

31
251
13

152
43
7
158
5

15

24
77

74
102
216
628
35

65
39
251
63

65
39
251
63

21

21

15
99
59
80
441

27
158
57

25
158
50

6

6

173

173

16

1
1

1
1

6
6

95
7
10
89
118

2

358
78
61

95
7
10
89
118
68

295

M utual
savings

Total

Nonin­
sured

A labam a.....................
A laska.........................
A rizona.......................
A rkansas.....................
California...................

F o r notes see opposite page.

20

In­
sured

N onmember

26
1
3

7

120

122

197
13
115

66

6

3
9
23

8

9
5

20

11

15
10
60

6

41
102
161
31
90
89
12

18

37
43
68

9
77
2

17

2

7

6

46
26
84
55
14
10

59
28
4
129

APRIL 1972 o BANKS AND BRANCHES

A 99

NUMBER IN OPERATION ON DECEMBER 31, 1971— Continued
Branches and additional offices 1
Class o f bank

Location

Commercial banks
State
N onmember

Total

M utual
savings
banks

Outside head office city

Total
N a­
tional

State

In­
sured

N on­
in­
sured

In­
sured

N onin­
sured

24,083 22,888 13,104

3,800

5,944

40

983

212

298
60
343
173
3,138

209
53
224
83
2,469

12
20
304

77
7
99
70
360

20

20

629
107

469
99
107

14
250
4
71

22

22

113
43
29
1

106
52
7
21

G eorgia.......................
H aw aii........................
Id a h o ..........................
Illinois.........................
In d ian a.......... i ..........

401
139
164
115
671

401
139
164
115
670

221
9
113
65
359

53

127
128

30
9
60

21

Io w a ............................
K a n sa s........................
K entucky...................
L ouisiana...................
M aine..........................

328
71
359
412
265

328
71
359
412
236

61
33
150
185
108

M aryland...................
M assachusetts...........
M ichigan....................
M in n eso ta .................
M ississippi.................

602
1,028
1,250
17
366

558
779
1,250
17
366

M issouri.....................
M o n tan a ....................
N eb rask a...................
N evada.......................
New H a m p sh ire .. . .

97
9
44
89
84

97
9
44
89

New Jersey................
New M exico.............
New Y o rk .................
N orth C arolina.........
N orth D a k o ta ...........

1,143
139
2,932
1,220
70

O h io ............................
O klaho m a..................
O regon.......................
Pennsylvania.............
R hode Islan d .............

1,365
66

66

361
1,926
253

359
1,820
178

South C aro lin a.........
South D a k o ta ...........
Tennessee...................
Texas...........................
U ta h ............................

453

453

144

144

V erm ont.....................
V irginia......................
W ashington...............
West V irginia...........
Wiscons5- .................

93
869
645

89
869
586

6

6

284

284

1

1

U nited States 2 .........
A labam a.....................
A laska.........................
A rizona.......................
A rk an sas....................
C alifornia...................
C o lo rad o ...................
Connecticut...............
D elaw are...................
D istrict o f Columbia
F lo rid a.......................

W yom ing...................
Virgin Islan d s...........

298
60
343
173
3,138

112

6

In
In non­
contig­ contig­
uous
uous
counties counties

8,475

7,446

4,116

4,046

216

166
19
110
102
440

106
5
86
64
441

12

14

14
82
6
647

22

5
5
4

20
148
17
107
21

305
55

156
33

65
1
1,610

2

35

1
19

41
251

318

30
7
60
36
64

237
31
149
191
64

138
71
221
245
60

141

49

133
156
109

'“ 5
8
84

3
12

2

268
440
581
7
145

75
163
444
1
13

215
174
223
9
208

144
542
460

185

10

8

116
1

222

11

106

"58

45

24
3
26
64
54

15
4
1
14
2

58

1,089
139
2,549
1,220
70

741
79
1,336
609

201
9
1,060

147
51
144
604
56

1,365

773
43
260
1,088
96

68

100

100

526

10

250
62
294

212

157
477
557
17
157
8

44
21

12

18
42

13
7

37

35
284
82
1,399
165

643
48
773

49
1
184
699
1

218

259

99
471
74

54
383

20

75

196
34
194
57
40

50
505
462
1
69

126
37
1
19

39
238
87
4
196
1

2

2
4

97

2

374
3

11
4
1
7
1
2
2

11

7
4
37
9
29

66

29

63
49
106

17

1 Excludes banks th at have banking facilities only; banking facilities
are shown separately; see note 3.
2 Includes one national bank in the Virgin Islands, with eight branches,
th at became a m ember o f the F.R. System in 1957.
3 Banking facilities (other th an branches) th at are provided a t military
and other Govt, establishments through arrangements made by the Treas­
ury; they are operated by 148 banks, 71 o f which have no other type of
branch o r additional office.




160
13

In
head
office
county

B ank­
ing
facili­
ties 3

244
52
14
115
353

526
66

20

In
head
office
city

110

167
8
576
246

11

36

22

614

728

19

77
318
65

45
762
102

65
844
47

174

110

63
29
182

61
7

219
34
7

21

50

4

30
192
97

13
225
157

16
3

66

2
106
75

16
330

21

2

39

66

4
59

13
310
228
6
51

1
20

27
37
142
163
189

1
3
N ote.—E ach branch and additional office is located in the same State
as its parent bank except th a t one national bank in N .J. has one branch
in Pa., one national bank in Calif, has tw o branches in W ash, and one in
Ore., one noninsured (unincorporated) bank in N .Y . has one branch in
Mass. and one in P a .; three insured nonm em ber banks in Puerto Rico have
15 branches in N .Y . In the table these branches are shown according to
their own location rather than th at o f the parent bank.

A 100

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
A r t h u r F. B u r n s , Chairman
G e o r g e W. M i t c h e l l

J. L. R o b e r t s o n ,

J. D e w e y D a a n e

A n d r e w F. B rim m e r

Vice Chairman

S h e r m a n J. M a i s e l
J o h n E. S h e e h a n

R o b e r t C . H o l l a n d . E xecutive D irector
R o b e r t S o l o m o n , A d v ise r to the B o a rd
J . C h a r l e s P a r t e e , A d v ise r to the B oa rd
C h a r l e s M o l o n y , A ssista n t to the B o a rd
H o w a r d H . H a c k l e y , A ssista n t to the B o a rd
D a v i d B . H e x t e r , A ssista n t to the B o a rd
R o b e r t L . C a r d o n , A ssista n t to the B oard
F r a n k O ’B r i e n , J r . , S p ecia l A ssista n t to the B o a rd
E d w i n J . J o h n s o n , A ssista n t to the B oard
J o h n S . R i p p e y , S p ecia l A ssista n t to the B o a rd
J o s e p h R . C o y n e , Sp ecia l A ssista n t to the B o a rd

OFFICE OF EXECUTIVE DIRECTOR
R o b e r t C . H o l l a n d , E xecutive D irector
D a v i d C . M e l n i c o f f , D eputy E xecutive

D irector
B . G r i m w o o d , A ssista n t D irector and
Program D irector fo r C ontingency Planning
H a r r y J. H a l l e y , P rogram D irector fo r M a n ­
agem ent System s
W i l l i a m W . L a y t o n , D irector o f E qu a l E m ­
ploym ent O pportunity
B r e n t o n C . L e a v i t t , Program D irector fo r
B anking Structure
G

ordon

OFFICE OF THE SECRETARY
T y n a n S m i t h , Secretary
M u r r a y A l t m a n n , A ssista n t Secretary
N o r m a n d R . V . B e r n a r d , A ssista n t S ecretary
A r t h u r L . B r o i d a , A ssista n t Secretary
E

liza b eth

L. C a r m ic h a e l ,

A ssista n t

Secretary
M

ic h a e l

A. G

reenspan

,

A ssista n t Secretary

LEGAL DIVISION
T h o m a s J. O ’C o n n e l l , G eneral C ounsel
R o b e r t F . S a n d e r s , D eputy G eneral C ounsel
P a u l G a r d n e r , Jr., A ssista n t G eneral C ounsel
P a u l i n e B . H e l l e r , A d viser
R o b e r t S . P l o t k i n , A d viser

DIVISION OF FEDERAL RESERVE BANK
OPERATIONS
J a m e s A . M c I n t o s h , D irector
J o h n N . K i l e y , J r . , A sso cia te D irector
W a l t e r A . A l t h a u s e n , A ssista n t D irector
D o n a l d G . B a r n e s , A ssista n t D irector
H a r r y A . G u i n t e r , A ssista n t D irector
P . D . R i n g , A ssista n t D irector
J a m e s L . V i n i n g , A ssista n t D irector
C h a r l e s C . W a l c u t t , A ssista n t D irector
L l o y d M . S c h a e f f e r , C h ief F ederal R eserve

E xam iner



DIVISION OF RESEARCH AND STATISTICS
J . C h a r l e s P a r t e e , D irecto r
S t e p h e n H. A x i l r o d , A sso cia te D irector
S a m u e l B. C h a s e , A sso cia te D irector
L y l e E . G r a m l e y , A sso cia te D irector
P e t e r M . K e i r , A d viser
J a m e s L . P i e r c e , A d viser
S t a n l e y J . S i g e l , A d viser
M u r r a y S . W e r n i c k , A d viser
K e n n e t h B . W i l l i a m s , A d viser
J a m e s B. E c k e r t , A sso cia te A d viser
J o s e p h S . Z e i s e l , A sso cia te A d viser
E d w a r d C . E t t i n , A ssista n t A d viser
E l e a n o r J . S t o c k w e l l , A ssista n t A d viser
S t e p h e n P . T a y l o r , A ssista n t A d viser
L o u i s W e i n e r , A ssista n t A d viser
L e v o n H. G a r a b e d i a n , A ssista n t D irector

DIVISION OF INTERNATIONAL FINANCE
R a l p h C . B r y a n t , D irector
J o h n E . R e y n o l d s , A sso cia te D irector
R o b e r t L . S a m m o n s , A sso cia te D irector
J o h n F . L . G h i a r d i , A d viser
A . B . H e r s e y , A d v ise r
R e e d J . I r v i n e , A d v ise r
S a m u e l I . K a t z , A d v ise r
B e r n a r d N o r w o o d , A d viser
R a l p h C . W o o d , A d viser
R o b e r t F . G e m m i l l , A sso cia te A d viser
S a m u e l P i z e r , A sso cia te A d viser

DIVISION OF SUPERVISION AND REGULATION
F r e d e r i c S o l o m o n , D irector
B r e n t o n C . L e a v i t t , D ep u ty D irector
F r e d e r i c k R . D a h l , A ssista n t D irector
J a c k M . E g e r t s o n , A ssista n t D irector
J o h n P . F l a h e r t y , A ssista n t D irector
J a n e t O . H a r t , A ssista n t D irector
J o h n N . L y o n , A ssista n t D irector
J o h n T . M c C l i n t o c k , A ssista n t D irector
T h o m a s A . S i d m a n , A ssista n t D irector
C h a r l e s L . M a r i n a c c i o , A d viser

A 101

BOARD OF GOVERNORS
Continued

DIVISION OF PERSONNEL ADMINISTRATION
R

G . B

o n a ld

Jo

h n

J. H

, D irector
A ssista n t D irector

u r k e

a r t

,

OFFICE OF THE CONTROLLER
Jo
H

h n

K

arry

a k a l ec

J. H

,

C ontroller
, D ep u ty C ontroller

a l l e y

DIVISION OF DATA PROCESSING
J

DIVISION OF ADMINISTRATIVE SERVICES

E.

Jo

seph

W

a lter

D

o n a ld

Jo

h n

D .

D irector
W . K r e i m a n n , D eputy D irector
E. A n d e r s o n , A ssista n t D irector
S m i t h , A ssista n t D irector
K

e l l e h e r




,

ero ld

C

E. S l o c u m , D irector
L. H a m p t o n , A sso cia te D irector
L. C u m m i n s , A ssista n t D irecto r

h a r les

G

len n

B

e n ja m in

R . W . K

n o w l e s

, J r .,

A ssista n t D irector
H

en r y

R

ic h a r d

W . M

e e t z e

S. W

a t t

,

A ssista n t D irector
A ssista n t D irector

,

A 102

FEDERAL OPEN MARKET COMMITTEE
A r t h u r F . B u r n s , Chairm an

A l f r e d H a y e s , Vice Chairm an

A n d r e w F . B r im m e r

D a v id P . E a s t b u r n

P h il ip E . C o l d w e l l

B ru c e

J. D e w e y D a a n e

S h e r m a n J. M a is e l

K.

J. L . R o b e r t s o n

M a c L a u ry

Jo h n E. S h e e h a n
W il l is J. W in n

G e o r g e W . M it c h e l l

R

o bert

C . H

A

r th u r
u rra y

N

o rm a n d

C

h a rles

H

o w a r d

D

a v id

J. C
S

r o id a

,

D eputy Secretary

l t m a n n

,

A ssista n t Secretary

L. B

M

A

R . V . B
M

e r n a r d

,

o l o n y

H . H

B. H

P

,

a r t e e

H . A

A ssista n t Secretary

,

A ssista n t Secretary
G eneral C ounsel

,

a c k le y

e x t e r

h a r les

t e p h e n

Secretary

,

o l l a n d

(D om estic F inance)
A
C

d w a r d

R

a lph

L

y le

R

a lph

R

la n

R . H

A . C

h a r les

o lm es

o o m b s

,

,

G . B

C. B

E. G

h n

r a m le y

J. H

H . K

,

A sso cia te E conom ist

,

A sso c ia te E conom ist

A sso cia te E conom ist
,

o c t e r

in k

A sso cia te E conom ist

A sso cia te E conom ist

,

a r e k e n

G . L

o bert

,

A sso cia te E conom ist

A sso cia te E conom ist

,

r e e n

e r se y

,

o e h n e

r y a n t

T. G

il l ia m

Jo

E conom ist

,

E

W

Senior E conom ist

x il r o d

o bert

A . B. H

A ssista n t G eneral Counsel
,

S o l o m o n , E conom ist
(International F inance)

R

A sso cia te E conom ist

,

M ana g er, System Open M a rke t A cc o u n t

Special M a n a g er, System O pen M a rke t A cc o u n t

FEDERAL ADVISORY COUNCIL
A . W . C
G . M
J

F. E

am es

reserv e

D

R

a v id

h n

S. F

seph

arry

reserv e

t w e l ft h

J r .,

fed er a l

t h ir d

reserv e

fed er a l

G

fed er a l

,

D

seco n d

d is t r ic t

,

B

,

C

fo u r th fed er a l

M

fed er a l

o r r is

,

s ix t h

L

fed er a l

e w is

H . B

reserv e

H
W

er b er t

il l ia m

V.

J. K

P

r o c h n o w

o r s v ik

,

,

Secretary

A ssista n t S ecretary

,

se v e n t h

fed er a l

o r e y

,

e ig h t h

fed er a l

d is t r ic t

in d

,

n in t h

fed er a l

d is t r ic t

F. M

reserv e

President
Vice P resident

r e e m a n

C . L

reserv e

f if t h

a ssett

h ester

,

d is t r ic t

H . M

reserv e

d is t r ic t




F

a y lo rd

a v id

,

d is t r ic t

reserv e

d is t r ic t

o o d

reserv e

a r r

d is t r ic t

reserv e

d is t r ic t

W . B

H

,
,

f ir s t

a n g b o n er

reserv e

H

,

o c k efel l er

reserv e

Jo

n g l is h

l a u s e n

o r r a n c e

d is t r ic t

fed er a l

Jo

D

o r r is

il l e r

,

t e n t h

fed er a l

d is t r ic t

o n d

,

e l e v e n t h

d is t r ic t

fed er a l

A 103

FEDERAL RESERVE BANKS AND BRANCHES
Federal Reserve Bank,
branch, or facility
Zip code

Chairman
Deputy Chairman

President
First Vice President

Boston ......................

02106

James S. Duesenberry
Louis W. Cabot

Frank E. Morris
Earle O. Latham

New Y o rk ................

10045

Roswell L. Gilpatric
Ellison L. Hazard
Morton Adams

Alfred Hayes
William F. Treiber

B uffalo................ ....14240

A. A. Maclnnes, Jr.

Philadelphia .........

19101

Bayard L. England
John R. Coleman

David P. Eastburn
Mark H. Willes

Cleveland ..............

44101

Willis J. Winn
Walter H. MacDonald

Cincinnati ...........
Pittsburgh ...........

45201
15230

Albert G. Clay
J. Ward Keener
Graham E. Marx
Lawrence E. Walkley
Robert W. Lawson, Jr.
Stuart Shumate
John H. Fetting, Jr.
Charles W. DeBell

Aubrey N. Heflin
Robert P. Black

John C. Wilson
H. G. Pattillo
E. Stanley Robbins
Henry K. Stanford
John C. Tune, Jr.
Broadus N. Butler

Monroe Kimbrel
Kyle K. Fossum

Emerson G. Higdon
William H. Franklin
Peter B. Clark

Robert P. Mayo
Ernest T. Baughman

Frederic M. Peirce
Sam Cooper
Roland R. Remmel
John G. Beam
William L. Giles

Darryl R. Francis
Eugene A. Leonard

David M. Lilly
Bruce B. Dayton
Warren B. Jones

Bruce K. MacLaury
M. H. Strothman, Jr.

Robert W. Wagstaff
Willard D. Hosford, Jr.
David R. C. Brown
Joseph H. Williams
Henry Y. Kleinkauf

George H. Clay
John T. Boysen

Chas. F. Jones
Philip G. Hoffman
Allan B, Bowman
Geo. T. Morse, Jr.
Irving A. Mathews

Philip E. Coldwell
T. W. Plant

O. Meredith Wilson
S. Alfred Halgren
Leland D. Pratt
John R. Howard
John R. Breckenridge
C. Henry Bacon, Jr.

Eliot J. Swan
A. B. Merritt

R ich m o n d ......................23261
Baltimore ...................21203
C harlotte.................... 28201
Culpeper Communications
C enter.................... 22701
A tlanta ...................

30303

Birmingham .......
Jacksonville .......
Nashville..............
New O rleans.........
Miami Office.........

35202
32203
37203
70160
33101

C hicago....................

60690

D etroit................... ....48231
St. L o u is...................

63166

Little R ock............
Louisville.............
M em phis..............

72203
40201
38101

Minneapolis ............

55480

H elena................... ....59601
Kansas C ity .............

64198

Denver .................
Oklahoma City
Omaha .................

80217
73125
68102

Dallas .......................

75222

El P a s o .................
H ouston................
San A ntonio.........

79999
77001
78295

San F ra n c isc o .........

94120

Los A ngeles.........
Portland................
Salt Lake City
S eattle...................

90051
97208
84110
98124




Vice President
in charge of branch

Fred O. Kiel
James H. Campbell

H. Lee Boatwright, III
Jimmie R. Monhollon
J. Gordon Dickerson, Jr.

Dan L. Hendley
Edward C. Rainey
Jeffrey J. Wells
George H. Gaffney
W. M. Davis

Daniel M. Doyle

John F. Breen
Donald L. Henry
Laurence T. Britt

Howard L. Knous

George C. Rankin
Howard W. Pritz
Robert D. Hamilton

Frederic W. Reed
James L. Cauthen
Carl H. Moore

Paul W. Cavan
William M. Brown
Arthur L. Price
William R. Sandstrom

A 104

FEDERAL RESERVE BOARD PUBLICATIONS
Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System,
Washington, D. C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of
the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not
accepted.)

Sec. 15. International Finance. 1962. 92 pp. $.65.
Sec. 16 (New). Consumer Credit. 1965. 103 pp. $.65.

AN NUA L R E P O R T

Monthly. $6.00
per annum or $.60 a copy in the United States and
its possessions, Bolivia, Canada, Chile, Colombia,
Costa Rica, Cuba, Dominican Republic, Ecuador,
Guatemala, Haiti, Republic of Honduras, Mexico,
Nicaragua, Panama, Paraguay, Peru, El Salvador,
Uruguay, and Venezuela; 10 or more of same
issue sent to one address, $5.00 per annum or $.50
each. Elsewhere, $7.00 per annum or $.70 a copy.

F E D E R A L R E S E R V E B U LLETIN .

FE D E R A L R E S E R V E C H A R T B O O K O N FI­
NA NCIAL AND B U S IN E S S S T A T IS T IC S . Month­

ly. Annual subscription includes one issue of His­
torical Chart Book. $6.00 per annum or $.60 a copy
in the United States and the countries listed above;
10 or more of same issue sent to one address, $5.00
per annum or $.50 each. Elsewhere, $7.00 per an­
num or $.70 a copy.
Issued annually in
Sept. Subscription to monthly chart book includes
one issue. $.60 a copy in the United States and
countries listed above; 10 or more sent to one ad­
dress, $.50 each. Elsewhere, $.70 a copy.

H IS T O R IC A L C H A R T B O O K .

as amended through
Nov. 5, 1966, with an appendix containing pro­
visions of certain other statutes affecting the Federal
Reserve System. 353 pp. $1.25.

THE FED ER A L R E S E R V E ACT,

R E G U L A T IO N S O F T H E B O A R D O F G O V E R ­
N O R S O F THE FED ERA L R E S E R V E SY STEM .
P U B L IS H E D IN T E R P R E T A T IO N S O F T H E B O A R D
O F G O V E R N O R S , as of Dec. 31, 1970. $2.50.
FL O W O F
1 9 3 9 -5 3 .

FU NDS

IN T H E

U N ITE D

STA TES,

1955. 390 pp. $2.75.

D E B IT S AND C L E A R IN G S T A T IS T IC S A N D T H E IR
U S E . 1959. 144 pp. $1.00 a copy; 10 or more sent

to one address, $.85 each.
S U P P L E M E N T T O BAN KING AN D M O N E T A R Y
S T A T IS T IC S . Sec. 1. Banks and the Monetary Sys­

tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967.
59 pp. $.50. Sec. 5. Bank Debits. 1966. 36pp. $.35.
Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. 9.
Federal Reserve Banks. 1965. 36 pp. $.35. Sec. 10.
Member Bank Reserves and Related Items. 1962.
64 pp. $.50. Sec. 11. Currency. 1963. 11 pp. $.35.
Sec. 12. Money Rates and Securities Markets. 1966.
182 pp. $.65. Sec. 14. Gold. 1962. 24 pp. $.35.




IN D U ST R IA L

P R O D U C T IO N — 1 9 5 7 - 5 9

BASE.

1962. 172 pp. $1.00acopy; 10 or moi;e sent to one ad­
dress, $.85 each.
BANK M E R G E R S & T H E R E G U L A T O R Y A G E N ­
C IE S : A P P L IC A T IO N O F T H E BANK M E R G E R
A C T O F 1 9 6 0 . 1964. 260 pp. $1.00 a copy; 10 or

more sent to one address, $.85 each.
BAN KING M A R K E T S T R U C T U R E & P E R F O R M ­
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TICAL S T U D Y O F F A C T O R S A F F E C T IN G
R A T E S O N BANK L O A N S. 1965. 73 pp. $.50 a

copy; 10 or more sent to one address, $.40 each.
T H E P E R F O R M A N C E O F BANK H O LD IN G C O M ­
PA N IE S . 1967. 29 pp. $.25 a copy; 10 or more sent

to one address, $.20 each.
Data from the 1960 Sample Survey of
Agriculture. 1964. 221 pp. $1.00 a copy; 10 or more
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M E R C H A N T AN D D E A L E R C R E D IT IN A G R IC U L ­
T U R E . 1966. 109 pp. $1.00 a copy; 10 or more sent

to one address, $.85 each.
1959. I ll pp.
$1.00 a copy; 10 or more sent to one address, $.85
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T H E F E D E R A L F U N D S M A R K E T.

IN F E D E R A L F U N D S . 1965. 116 pp.
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each.

T R A D IN G

U .S. T R E A S U R Y A D V A N C E R E F U N D IN G , JU N E
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BANK C R E D IT -C A R D
AN D C H E C K -C R E D IT
PL A N S . 1968. 102 pp. $1.00 a copy; 10 or more sent

to one address, $.85 each.
IN T E R E S T R A T E E X P E C T A T IO N S : T E S T S ON
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S U R V E Y O F C H A N G E S IN FAMILY F IN A N C E S .

1968. 321 pp. $1.00 a copy; 10 or more sent to one
address, $.85 each.

A 105

R E P O R T O F T H E JO IN T T R E A S U R Y -F E D E R A L
R E S E R V E S T U D Y O F T H E U .S. G O V E R N M E N T
S E C U R IT IE S M A R K E T. 1969. 48 pp. $ .25 a copy;
10 or m ore sent to one address, $.20.

O PTIM A L C H O IC E O F M O N E T A R Y P O L IC Y IN­
S T R U M E N T S IN A S IM P L E S T O C H A S T IC
M A C R O M O D E L, by W illiam Poole. Sept. 1970. 20
pp.

JO IN T T R E A S U R Y -F E D E R A L R E S E R V E ST U D Y
O F T H E G O V E R N M E N T S E C U R IT IE S M A R K E T
— S T A F F S T U D IE S :
P art 1 (papers by C ooper, B ernard, and Scherer).
1970. 86 pp. $ .5 0 a copy; 10 or m ore sent to one ad­
d re ss, $ .4 0 each.
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U N C E R T A IN T Y AN D ST A B IL IZ A T IO N P O L IC IE S
FO R
A
N O N L IN E A R
M A C R O E C O N O M IC
M O D E L, by Franklin R. Shupp. D ec. 1970. 23 pp.

(Single copies, in mimeographed or similar form,
available upon request from limited supply of staff
papers other than those in Parts 1 and 2. See p. 48 of
main report for a list of such papers.)
O P E N M A R K E T P O L IC IE S A N D O P E R A T IN G
P R O C E D U R E S — S T A F F S T U D IE S (papers by
A xilrod, D av is, A nd ersen, K areken et al., P ierce,
F riedm an, and P oole). 1971. 218 pp. $ 2 .0 0 a copy;
10 or m ore sent to one address, $1.75 each.
R E A P P R A IS A L O F T H E F E D E R A L R E S E R V E
D IS C O U N T M E C H A N ISM :
Vol. 1 (papers by Steering C om m ittee, S hull, A n ­
d erson, and G arvy). 1971. 276 pp.
Vol. 2 (papers by B oulding, C handler, Jones,
O rm sby, M o d ig lian i, A lperstein, M elichar, and
M elichar and D oll). 1971. 173 pp. Price of each
volu m e, $ 3 .0 0 a c opy; 10 o r m ore sent to one address,
$ 2 .5 0 each.

Single copies, in mimeographed or similar form,
available upon request from limited supply of the
following papers relating to the Discount Study:
R E S E R V E A D JU S T M E N T S O F T H E E IG H T MA­
J O R N E W Y O R K CITY B A N K S D U R IN G 1 9 6 6 .
1968. 2 9 p p .
D IS C O U N T P O L IC Y
S IO N . 1 9 6 8 .7 2 pp.

AN D

BANK

S U P E R V I­

A C A D E M IC V IE W S O N IM P R O V IN G T H E F E D ­
ERA L R E S E R V E D IS C O U N T M E C H A N ISM .
1970. 172 pp.

STAFF ECONOMIC STUDIES

Studies and papers on economic and financial subjects
that are of general interest in the field of economic
research.

O P E R A T IN G P O L IC IE S O F BANK H O LD IN G
C O M P A N IE S — P A R T 1, by R obert J. L aw rence.
A pr. 1 9 7 1 ,8 2 pp.
T H E R E LA TIV E IM P O R T A N C E O F M O N E T A R Y
A N D F IS C A L V A R IA B L E S IN D E T E R M IN IN G
P R IC E LEV EL M O V E M E N T S : A N O T E , by P eter
S. R ose and L acy H . H unt II. June 1971. 7 pp.
E ST IM A T IO N O F T H E IN V E S T M E N T A N D P R IC E
E Q U A T IO N S O F A M A C R O E C O N O M E T R IC
M O D E L, by R obert J. Shiller. June 1971. 65 pp.
A D JU S T M E N T A N D D IS E Q U IL IB R IU M C O S T S
AN D T H E
E ST IM A T E D B R A IN A R D -T O B IN
M O D E L, by Joseph B isignano. July 1971. 108 pp.
A T E S T O F T H E “ E X P E C T A T IO N S H Y P O T H E S IS ”
U S IN G D IR E C T L Y O B S E R V E D W A G E AN D
P R IC E E X P E C T A T IO N S , by Stephen J. T urnovsky
and M ichael L. W achter. A ug. 1971. 25 pp.
M ORTGAGE REPAY M ENTS AS A SO U R C E O F
LO A N A BLE F U N D S , by R obert M oore Fisher.
A ug. 1971. 43 pp.
T H E U S E O F IN T E R E S T R A T E P O L IC IE S A S A
S T IM U L U S T O E C O N O M IC G R O W T H , by R obert
F. E m ery. Sept. 1971. 37 pp.
PR IV A T E H O U S IN G C O M P L E T IO N S — A N E W
D IM E N SIO N IN C O N S T R U C T IO N S T A T IS T IC S ,
by B ernard N . F reedm an. Jan. 1972. 20 pp.
P O L IC Y V A R IA B L E S , U N E M P L O Y M E N T AN D
P R IC E LEV EL C H A N G E S , by Peter S. R ose and
L acy H . H unt II. Jan. 1972. 11 pp.
O PTIM A L D IS T R IB U T E D LAG R E S P O N S E S AND
E X P E C T A T IO N S , by R oger C raine. Feb. 1972. 9 pp.
T H E E F F E C T O F H O L D IN G C O M P A N Y A C Q U IS I­
T IO N S O N BANK P E R F O R M A N C E , by Sam uel
H . T alley. F eb. 1972. 25 pp.
IN T E R N A T IO N A L M O N E Y M A R K E T S AN D F L E X ­
IBLE E X C H A N G E R A T E S , by Stanley W . B lack.
M ar. 1 9 7 2 .7 4 pp.

S u m m a rie s o n ly p rin te d in th e B u lle tin .

REPRINTS

(Single copies of full text available, in mimeographed
form, upon request from limited supply.)

P rin te d in fu ll in th e B u lle tin .

(Reprints available as shown in following list.)
M E A S U R E S O F IN D U ST R IA L P R O D U C T IO N AND
FINAL D E M A N D , by C layton G ehm an and C o r­
nelia M otheral. Jan. 1967. 57 pp.




A D JU S T M E N T F O R S E A S O N A L V A RIA TIO N . June
1941. 11 pp.

A 106

FEDERAL RESERVE BULLETIN □ APRIL 1972

S E A S O N A L F A C T O R S A F F E C T IN G BANK R E ­
S E R V E S . Feb. 1958. 12 pp.
LIQUIDITY AN D PU B L IC PO L IC Y , S taff P a p e r by
Stephen H . A xilrod. O ct. 1961. 17 pp.
SE A S O N A L L Y A D JU S T E D S E R IE S F O R BANK
C R E D IT . July 1962. 6 pp.

T H E F E D E R A L R E S E R V E -M IT E C O N O M E T R IC
M O D E L, S ta ff E c o n o m ic S tu d y by Frank de L eeuw
and E dw ard G ram lich. Jan. 1968. 30 pp.
U .S. IN T E R N A T IO N A L T R A N S A C T IO N S : T R E N D S
IN 1 9 6 0 -6 7 . A pr. 1968. 23 pp.

IN T E R E S T R A T E S AN D M O N E T A R Y PO L IC Y ,
S taff P a p e r by Stephen A xilrod. Sept. 1962. 28 pp.

M O N E T A R Y R E S T R A IN T AN D B O R R O W IN G AND
CA P IT A L S P E N D IN G BY L A R G E S T A T E AND
L O CA L G O V E R N M E N T S IN 1966. July 1968.
30 pp.

M EA SU R ES O F M EM BER
July 1963. 14 pp.

F E D E R A L F IS C A L P O L IC Y IN T H E 1 9 6 0 ’s. Sept.
1968. 18 pp.

BANK

RESERVES.

C H A N G E S IN BAN KING S T R U C T U R E , 1 9 5 3 -6 2 .
Sept. 1963. 8 pp.
R E V ISIO N O F BANK D E B IT S AN D D E P O S IT
T U R N O V E R S E R IE S . M ar. 1965. 4 pp.
TIM E D E P O S IT S IN M O N E T A R Y A N A L Y SIS , S taff
E co n o m ic S tu d y by L yle E. G ram ley and Sam uel B.
C hase, Jr. O ct. 1965. 25 pp.
R E S E A R C H O N BA N K IN G S T R U C T U R E AND
P E R F O R M A N C E , S taff E co n o m ic S tu d y by T ynan
Sm ith. A pr. 1966. 11 pp.

B U S IN E S S FIN A N C IN G BY B U S IN E S S FIN A N C E
C O M P A N IE S . O ct. 1968. 13 pp.
M A N U F A C T U R IN G C A P A C IT Y : A C O M P A R IS O N
O F T W O S O U R C E S O F IN F O R M A T IO N , S taff
E c o n o m ic S tu d y by Jared J. E nzler. N ov. 1968. 5 pp.
M O N E T A R Y R E S T R A IN T , B O R R O W IN G , AND
C A P IT A L S P E N D IN G BY SM ALL LOCAL G O V ­
E R N M E N T S AND S T A T E C O L L E G E S IN 1966.
D ec. 1968. 30 pp.
R E V IS IO N O F C O N S U M E R C R E D IT S T A T IS T IC S .
D ec. 1968. 21 pp.

C O M M E R C IA L BANK LIQUIDITY, S taff E co n o m ic
S tu d y by Jam es P ierce. A ug. 1966. 9 pp.

H O U S IN G P R O D U C T IO N
1969. 7 pp.

A R E V IS E D IND EX O F M A N U F A C T U R IN G C A ­
PA C ITY , S taff E co n o m ic S tu d y by Frank de L eeuw
w ith Frank E. H opkins and M ichael D . Sherm an.
N ov. 1966. 11 pp.

O U R P R O B L E M O F IN FLA TIO N . June 1969. 15 pp.

T H E R O L E O F FIN A N CIA L IN T E R M E D IA R IE S IN
U .S. C A PITA L M A R K E T S , S taff E co n o m ic S tu d y
by D aniel H . B rill w ith A nn P. U lrey. Jan. 1967.
14 pp.
R E V IS E D S E R IE S O N C O M M E R C IA L AN D IN­
D U ST R IA L L O A N S BY IN D U ST R Y . Feb. 1967.
2 pp.

AND F IN A N C E . M ar.

T H E C H A N N E L S O F M O N E T A R Y PO L IC Y , S taff
E co n o m ic S tu d y by F rank de L eeuw and E dw ard
G ram lich. June 1969. 20 pp.
R E V IS IO N O F W E E K L Y S E R IE S F O R C O M M E R ­
CIAL B A N K S. A ug. 1969. 5 pp.
E U R O -D O L L A R S : A C H A N G IN G M A R K E T. O ct.
1969. 20 pp.
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 IA L B A N K IN G . M ar. 1970. 16 pp.

A U TO LOAN C H A R A C T E R IS T IC S AT M A JO R
S A L E S F IN A N C E C O M P A N IE S . Feb. 1967. 5 pp.

S D R ’s IN F E D E R A L R E S E R V E O P E R A T IO N S
A N D S T A T IS T IC S . M ay 1970. 4 pp.

S U R V E Y O F F IN A N C E C O M P A N IE S , M ID -1 9 6 5 .
A pr. 1967. 26 pp.

INFLA TIO N IN W E S T E R N E U R O P E AN D JA P A N .
O ct. 1970. 13 pp.

E V ID E N C E O N C O N C E N T R A T IO N IN BANKING
M A R K E T S AND IN T E R E S T R A T E S , S taff E c o ­
n o m ic S tu d y by A lm arin Phillips. June 1967. 11 pp.

M E A S U R E S O F S E C U R IT Y C R E D IT . D ec. 1970.
11 pp.

N E W B E N C H M A R K P R O D U C T IO N M E A S U R E S ,
1 9 5 8 AND 1 9 6 3 . June 1967. 4 pp.

M O N E T A R Y A G G R E G A T E S AND M O N E Y M A R ­
K E T C O N D IT IO N S IN O P E N M A R K E T PO L IC Y .
F eb. 1971. 26 pp.

T H E PU B L IC IN F O R M A T IO N A C T — ITS E F F E C T
O N M E M B E R B A N K S. July 1967. 6 pp.

BANK FIN A N C IN G O F M O BILE H O M E S . M ar. 1971.
4 pp.

IN T E R E S T C O S T E F F E C T S O F C O M M E R C IA L
BANK U N D E R W R IT IN G O F M U N IC IPA L R E V E ­
N U E B O N D S . A ug. 1967. 16 pp.

R E S P O N S E O F S T A T E AN D L O CA L G O V E R N ­
M E N T S T O V A R Y IN G C R E D IT C O N D IT IO N S .
M ar. 1971. 24 pp.




FEDERAL RESERVE BOARD PUBLICATIONS

A 107

IN T E R E S T R A T E S , C R E D IT F L O W S , AN D M O N E ­
T A R Y A G G R E G A T E S S IN C E 1964. June 1971.
16 pp.

PL A N N E D AN D A C T U A L L O N G -T E R M B O R R O W ­
ING BY S T A T E & L O CA L G O V E R N M E N T S .
D ec. 1971. 11 pp.

T W O KEY IS S U E S O F M O N E T A R Y PO L IC Y . June
1971. 4 pp.

C H A N G E S IN TIM E A N D S A V IN G S D E P O S IT S ,
JU L Y -O C T O B E R 1971. Jan. 1972. 14 pp.

SU R V E Y O F D E M A N D D E P O S IT O W N E R S H IP .
June 1971. 12 pp.

FINANCIAL D E V E L O P M E N T S IN T H E F O U R T H
Q U A R T E R O F 1971. Feb. 1972. 9 pp.

BANK R A T E S O N B U S IN E S S L O A N S — R E V IS E D
S E R IE S . June 1971. 10 pp.

ASSETS
AN D
LIABILITIES
OF
F O R E IG N
B R A N C H E S O F U .S . B A N K S. Feb. 1972. 16 pp.

IN D U ST R IA L
P R O D U C T IO N — R E V IS E D
N E W M E A S U R E S . July 1971. 26 pp.

AND

T R E A S U R Y -F E D E R A L R E S E R V E F O R E IG N E X ­
C H A N G E O P E R A T IO N S . M ar. 1972. 29 pp.

BAN KING A N D M O N E T A R Y S T A T IS T IC S , 1970.
Selected series of banking and m onetary statistics for
1970 only. F e b ., M a r., and July 1971. 1 9 p p .

W A Y S T O M O D E R A T E F L U C T U A T IO N S IN T H E
C O N S T R U C T IO N O F H O U S IN G . M ar. 1972.
11 pp.

R E V IS E D M E A S U R E S O F M A N U F A C T U R IN G
C A P A C IT Y U TILIZATION . O ct. 1971. 3 pp.
R E V IS IO N O F T H E M O N E Y S T O C K . N ov. 1971.
14 pp.
BA L A N C E O F P A Y M E N T S P R O G R A M : R E V IS E D
G U ID E L IN E S F O R B A N K S AN D N O N B A N K
FIN A N CIA L IN S T IT U T IO N S . N ov. 1971. 1 1 p p .
R E V IS IO N O F BANK C R E D IT S E R IE S . D ec. 1971.
5 pp.




U .S. B A LA N C E O F P A Y M E N T S AN D IN V E S T ­
M E N T P O S IT IO N . A pr. 1972. 15 pp.
O P E N M A R K E T O P E R A T IO N S AN D T H E M O N E ­
T A R Y AN D C R E D IT A G G R E G A T E S — 1971.
A pr. 1972. 23 pp.
C H A N G E S IN BANK L EN D IN G P R A C T IC E S , 1971.
A pr. 1972. 5 pp.
C H A N G E S IN TIM E AN D S A V IN G S D E P O S IT S
AT C O M M E R C IA L B A N K S, O C T O B E R 1 9 7 1 JA N U A R Y 1972. Apr. 1972. 12 pp.

A 108

FEDERAL RESERVE BULLETIN □ APRIL 1972

INDEX TO STATISTICAL TABLES
(For list of tables published periodically, but not monthly, see page A-3)

(References are to pages A-4 through A-99 although the prefix “ A” is omitted in this index)

Acceptances, bankers’, 14, 33, 35
Agricultural loans of commercial banks, 24, 26
Arbitrage, 95
Assets and liabilities (See also Foreigners):
Banks, by classes, 20, 24, 25, 26, 39
Banks and the monetary system, 19
Corporate, current, 51
Federal Reserve Banks, 12
Automobiles:
Consumer instalment credit, 56, 57, 58
Production index, 60, 61
Bank credit proxy, 18
Bankers’ balances, 25, 28
(See also Foreigners, claims on, and liabilities to)
Banks and branches, number, by class and State, 98
Banks and the monetary system, 19
Banks for cooperatives, 40
Bonds (See also U.S. Govt, securities):
New issues, 47, 48, 49
Yields and prices, 36, 37
Branch banks:
Foreign, 30, 88, 89, 90
U.S., number, by class and State, 99
Brokerage balances, 87
Business expenditures on new plant and equipment, 51
Business indexes, 64
Business loans (See Commercial and industrial loans)
Capacity utilization, 64
Capital accounts:
Banks, by classes, 20, 25, 30
Federal Reserve Banks, 12
Central banks, 94, 96
Certificates of deposit, 30
Coins, circulation, 16
Commercial and industrial loans:
Commercial banks, 24, 33
Weekly reporting banks, 26, 31
Commercial banks:
Assets and liabilities, 20, 24, 25, 26
Consumer loans held, by type, 57
Deposits at, for payment of personal loans, 32
Loans sold outright, 33
Number, by classes, 20, 98
Real estate mortgages held, by type, 52
Commercial paper, 33, 35
Condition Statements (See Assets and liabilities)
Construction, 64, 65
Consumer credit:
Instalment credit, 56, 57, 58, 59
Noninstalment credit, by holder, 57
Consumer price indexes, 64, 68
Consumption expenditures, 70, 71
Corporations:
Sales, profits, taxes, and dividends, 50, 51
Security issues, 48, 49
Security yields and prices, 36, 37
Cost of living (See Consumer price indexes)
Currency and coin, 5, 10, 25
Currency in circulation, 5, 16, 17
Customer credit, stock market, 38
Debits to deposit accounts, 15
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, banks and the monetary system, 19
Adjusted, commercial banks, 15, 18, 25
Banks, by classes, 11, 20, 25, 29




Demand deposits—Continued
Ownership by individuals, partnerships, and
corporations, 32
Subject to reserve requirements, 18
Turnover, 15
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of personal
loans, 32
Adjusted, and currency, 19
Banks, by classes, 11, 20, 25, 29, 39
Euro-dollars, 90
Federal Reserve Banks, 12,90
Postal savings, 19, 25
Subject to reserve requirements, 18
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 50, 51
Dollar assets, foreign, 77, 83
Earnings and hours, manufacturing industries, 67
Employment, 64, 66, 67
Euro dollar deposits in foreign branches of U.S. banks, 90
Farm mortgage loans, 52, 53
Federal agency obligations, 12, 13, 14, 15
Federal finance:
Cash transactions, 42
Receipts and expenditures, 43
Treasury operating balance, 42
Federal funds, 8, 24, 26, 30, 35
Federal home loan banks, 40, 41, 53
Federal Housing Administration, 52, 53, 54, 55
Federal intermediate credit banks, 40, 41
Federal land banks, 40, 41
Federal National Mortgage Assn., 40, 41, 55
Federal Reserve Banks:
Condition statement, 12
U.S. Govt, securities held, 4, 12, 15, 44, 45
Federal Reserve credit, 4, 6, 12, 15
Federal Reserve notes, 12 , 16
Federally sponsored credit agencies, 40, 41
Finance companies:
Loans, 26, 56, 57, 59
Paper, 33, 35
Financial institutions, loans to, 24, 26
Float, 4
Flow of funds, 72
Foreign:
Currency operations, 12, 14, 77, 83
Deposits in U.S. banks, 5, 12, 19, 25, 29, 90
Exchange rates, 93
Trade, 75
Foreigners:
Claims on, 84, 85, 90, 91, 92
Liabilities to, 30, 78, 79, 81, 82, 83, 9 0 ,9 1 ,9 2
Gold:
Certificates, 12, 13, 16
Earmarked, 90
Net purchases by U.S., 76
Production, 97
Reserves of central banks and govts., 96
Stock, 4 ,19,77
Government National Mortgage Association, 55
Gross national product, 70, 71
Hours and earnings, manufacturing industries, 67
Housing permits, 64
Housing starts, 65

A 109

Labor force, 66
Loans (See also specific types of loans):
Banks, by classes, 2 0,24,26, 27, 39
Commercial banks, 18, 20, 24,26, 27,31, 33, 34
Federal Reserve Banks, 4, 6, 9, 12, 13, 15
Insurance companies, 39, 53
Insured or guaranteed by U.S., 52, 53, 54, 55
Savings and loans assns., 40, 53
Manufacturers:
Capacity utilization, 64
Production index, 61, 64
Margin requirements, 10
Member banks:
Assets and liabilities, by classes, 20, 24
Borrowings at Reserve Banks, 6, 12
Deposits, by classes, 11
Number, by classes, 20, 98
Reserve position, basic, 8
Reserve requirements, 10
Reserves and related items, 4, 18
Mining, production index, 61, 63
Mobile home shipments, 65
Money rates (See Interest rates)
Money stock and related data, 17, 19
Mortgages (See Real estate loans and Residential mortgage
loans)
Mutual funds (See Investment companies)
Mutual savings banks, 19, 29, 39, 44, 45, 52, 98
National banks, 22, 32, 98
National income, 70, 71
National defense expenditures, 43, 70
Nonmember banks, 22, 24, 25, 32, 98
Open market transactions, 14
Payrolls, manufacturing index, 64
Personal income, 71
Postal savings, 19, 25
Prices:
Consumer and wholesale commodity, 64, 68
Security, 37
Prime rate, commercial banks, 34
Production, 60-63, 64
Profits, corporate, 50, 51




Real estate loans:
Banks, by classes, 24, 27, 39, 52
Delinquency rates on home mortgages, 54
Mortgage yields, 55
Type of holder and property mortgaged, 52,53,54, 55
Reserve position, basic, member banks, 8
Reserve requirements, member banks, 10
Reserves:
Central banks and govts., 96
Commercial banks, 25, 28, 30
Federal Reserve Banks, 12
Member banks, 5 ,6 , 11, 18, 25
U.S. reserve assets, 77
Residential mortgage loans, 37, 52, 53, 54
Retail credit, 56
Retail sales, 64
Saving:
Flow of funds series, 72
National income series, 71
Savings and loan assns., 40, 45, 53
Savings deposits (See Time deposits)
Savings institutions, principal assets, 39, 40
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 40, 41
International transactions, 86, 87
New issues, 47, 48, 49
Silver coin, 16
Special Drawing Rights, 4, 12, 13, 19, 74, 77
State and local govts.:
Deposits, 25, 29
Holdings of U.S. Govt, securities, 44, 45
New security issues, 47, 48
Ownership of securities of, 24, 28, 39
Yields and prices of securities, 36, 37
State member banks, 22, 32, 98
Stock market credit, 38
Stocks:
New issues, 48, 49
Yields and prices, 36, 37
Tax receipts, Federal, 43
Time deposits, 11, 18, 19, 20, 25, 29
Treasury cash, Treasury currency, 4, 5, 16, 19
Treasury deposits, 5, 12,42
Treasury operating balance, 42
Unemployment, 66
U.S. balance of payments, 74
U.S. Govt, balances:
Commercial bank holdings, 25, 29
Consolidated condition statement, 19
Member bank holdings, 18
Treasury deposits at Reserve Banks, 5, 12, 42
U.S. Govt, securities:
Bank holdings, 19, 20, 24, 27, 39, 44, 45
Dealer transactions, positions, and financing, 46
Federal Reserve Bank holdings, 4, 12, 15, 44, 45
Foreign and international holdings, 12, 83, 86, 90
International transactions, 83, 86
New issues, gross proceeds, 48
Open market transactions, 14
Outstanding, by type of security, 44, 45, 47
Ownership of, 44, 45
Yields and prices, 36, 37
United States notes, 16
Utilities, production index, 61, 63
Veterans Administration, 52, 53, 54, 55
Weekly reporting banks, 26
Yields (See Interest rates)

(References are to pages A-4 through A-99 although the prefix “ A ” is omitted in this index)

Income, national and personal, 70, 71
Industrial production index, 60-63, 64
Instalment loans, 56, 57, 58, 59
Insurance companies, 39, 44, 45, 53
Insured commercial banks, 22, 24, 32, 98
Interbank deposits, 11, 20, 25
Interest rates:
Business loans by banks, 34
Federal Reserve Banks, 9
Foreign countries, 94, 95
Money market rates, 35
Mortgage yields, 55
Prime rate, commercial banks, 34
Time and savings deposits, maximum rates, 11
Yields, bond and stock, 36
International capital transactions of the U.S., 78-92
International institutions, 76, 77, 94, 96
Inventories, 70
Investment companies, issues and assets, 49
Investments (See also specific types of investments):
Banks, by classes, 20, 24, 27, 28, 39
Commercial banks, 18
Federal Reserve Banks, 12, 15
Life insurance companies, 39
Savings and loan assns., 40