Full text of Federal Reserve Bulletin : April 1974
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F E D E R A L R ESER V E BULLETIN A copy of the Federal Reserve Bulletin is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $2.00 annual rate. The regular subscription price 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 is $6.00 per annum or 60 cents per copy;-elsewhere, $7.00 per annum or 70 cents per copy. Group subscriptions in the United States for 10 or more copies to one address, 50 cents per copy per month, or $5.00 for 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should 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) COVER: Photograph of the Constitution Avenue entrance of the Federal Reserve Building in Washington, D.C. The building, completed in 1937, houses the Board of Governors of the Federal Reserve System and its staff. In the two-tone reproduction of the photograph, the gray color is printed as a combined “line conversion” with a light-value halftone and the orange is overprinted with a darker-value halftone. FED ERAL RESERVE B U LLE TIN NUMBER 4 □ CONTENTS VO LU M E 60 □ APRIL 1974 235 Recent Developments in U.S. Balance of Payments 246 Capacity Utilization for Major Materials: Revised Measures 252 Changes in Time and Savings Deposits at Commercial Banks, July-October 1973 263 Changes in Bank Lending Practices, 1973 268 Statement to Congress 275 Record of Policy Actions of the Federal Open Market Committee 284 Law Department 321 Announcements 323 Industrial Production Financial and Business Statistics A A A A A 3 3 4 72 A 92 Board of Governors and Staff A 94 Open Market Committee and Staff; Federal Advisory Council A 95 Federal Reserve Banks and Branches A 96 Federal Reserve Board Publications A 99 Index to Statistical Tables 1 Contents Guide to Tabular Presentation Statistical Releases: Reference U.S. Statistics International Statistics Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE J. Charles Partee Ralph C. Bryant Lyle E. Gramley Joseph R. Coyne Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal R eserve B U L L E T IN is issu ed m onth ly under the direction o f the staff editorial co m m ittee. T h is co m m ittee is resp onsib le for o p in io n s exp ressed ex cep t in official statem ents and sign ed articles. D irection for the art w ork is provided by M ack R o w e. R e c e n t D e v e lo p m e n ts in th e U .S . B a la n c e o f P a y m e n ts U.S. INTERNATIONAL ECONOMIC POSITION “Value of U.S. dollar” is based on market exchange rates weighted by country shares in world trade in 1972. “Official settlements balance” is Dept, of Commerce data at season ally adjusted annual rates. 1973 was a year of considerable change in the U .S . international econom ic position. At the beginning of the year the U .S. trade balance was still in large deficit and confidence in the dollar was weak. By the end of the year our position had been com pletely reversed— the trade balance was then in large surplus and the dollar was appreciating against foreign currencies. Strong upward m ovem ents in world prices during the year, particularly of basic com m odities, affected both U .S. trade flows and the dom estic econom y. The oil crisis had an im m ediate impact on the balance of paym ents, and it greatly affected consideration of the near-term evolution of the U .S. paym ents position. Under pressures of massive speculative capital flows early in 1973 and continuing uncertainties later, exchange rates evolved toward greater flexibility. W ith this greater flexibility in exchange rates, the U .S. international position can no longer be assessed in term s of the traditional balance of paym ents m easures alone. Under a regime of fixed rates, the official settlem ents balance measured external paym ents pressure by indicating the extent to which central banks needed to buy or sell foreign exchange to keep exchange rates within their fixed relationships. W ith freely fluctuating exchange rates, changes in exchange rates would be the im portant indicators of external balance. H ow ever, under the mixed regim e of m anaged floating rates in operation now, not only variations in exchange rates but also surpluses or deficits in reserve transactions must be examined in appraising the over-all balance of paym ents position. (For a more detailed discussion see the October 1973 B u l l e t i n , pp. 7 1 3 -2 3 .) 236 FEDERAL RESERVE BULLETIN □ APRIL 1974 M ovem ents in the foreign exchange value of the dollar and in the official reserve transactions balance need not always be in the same direction, since the official settlem ents balance depends on the particular balance of paym ents situations of individual foreign countries and the intervention decisions of their central banks. For exam ple, in the second quarter of 1973 the dollar depreciated sharply, on average, yet the United States had an official settlem ents surplus. H ow ever, the two indicators did m ove broadly together over the course of 1973. Early in the year, confidence in the dollar plum m eted, partly because the U .S. trade balance had continued in heavy deficit throughout 1972. In the face of heavy speculative dollar outflows from the United States, foreign central banks made large-scale dollar purchases in an effort to stabilize exchange rates, as evidenced by the $10.5 billion deficit in official reserve transac tions for the first quarter. An official 10 per cent devaluation of the dollar in February and continued market intervention by foreign authorities failed to stem the speculative flow. In February U.S. BALANCE OF PAYMENTS, 1971-73 In billions of dollars; quarterly data at seasonally adjusted annual rates Item 1971 1972 1973 1973 Q1 Exports of goods and services ........................................... Merchandise, excluding military ...................................... Military sales ................................................................. Other services ................................................................. Investment income .......................................................... Imports of goods and services .......................................... Merchandise, excluding military ...................................... Military expenditures ...................................................... Other services ................................................................. Investment income .......................................................... Balance on goods (merchandise) .......................................... Balance on goods and services .......................................... Private and U.S. Govt, unilateral transfers, net .................. Balance on current account .............................................. Q2 Q3 Q4 66.3 73.5 102.7 90.2 97.2 105.0 118.7 42.8 48.8 70.3 60.9 66.7 72.6 80.8 1.9 2.4 1.4 1.2 1.8 4.1 2.1 8.7 9.6 11.6 11.1 11.3 11.6 12.2 12.9 13.9 18.6 16.7 17.3 18.6 21.5 -65.5 -78.1 -95.8 -89.4 -94.8 -96.4 - 102.8 -45.5 -55.7 -69.6 -64.7 - 68.0 -70.1 -75.4 -4.8 -4.7 -4.5 -4.7 -4.7 -4.3 -4.4 -10.3 —11.6 -12.9 - 12.6 - 13.2 - 12.6 -13.2 -4.9 - 6.1 - 8.8 -7.4 - 8.8 -9.3 -9.8 -2.7 -6.9 .7 -3.8 -1.3 2.4 5.4 .8 -4 .6 6.9 .7 2.4 8.6 15.9 -3.6 -3.7 -3.9 -3.0 -4.3 -3.5 -4.6 -2 .8 -8.4 3.0 -2 .2 -1 .8 5.0 11.2 U.S. Govt, capital flows, net, outflows (—) ......................... -2.4 -1.3 -1.5 -1.3 .3 -1.5 -3.4 Long-term private capital flows, net, outflows ( —) ............ U.S. direct investment abroad ...................................... Foreign direct investment in U.S.................................... U.S. purchases of foreign securities .............................. Foreign purchases of U.S. securities ............................. Other long-term capital flows, net ................................. -4.4 -4.9 - .1 - 1.0 2J - .6 - .2 -3.4 2 - 6 4.3 - .6 -1.2 6.7 -6 .9 Basic balance [current account and long-term capital]........... -9 .6 -9 .8 Short-term capital flows, net, outflows (—) ......................... —10.1 -3.4 -6.7 1.9 -3.0 4.9 - .4 -4.9 - 8.1 2.1 1.1 .2 - .8 4.1 7.0 - .9 - .1 1.2 -3.5 -1.7 - 22.8 - 6.6 -15.5 4.9 -7.3 -10.8 -3.1 -4 .8 -5 .3 U.S. short-term capital ................................................. Foreign short-term capital ............................................. Errors and omissions, net ................................................ SDR allocations ............................................................. Balance on official settlements ........................................... .7 .7 -29.8 -10.3 -3.8 2.1 - .5 2.0 - 1.0 -1.9 3.0 - .8 4.7 -5.6 2.0 - 2.1 2.7 -3.9 -2 .7 2.2 —2.2 4.4 10.2 2.7 -2.3 5.0 11.0 -6.5 17.5 -15.6 1.9 -4.4 -1.1 -41.9 1.4 8.5 10.8 1.6 .9 U.S. BALANCE OF PAYMENTS 237 several im portant currencies were allowed to fluctuate and by m id-M arch m ost other m ajor foreign countries had ceased holding the rates for their currencies within stated m argins of a fixed rate against the dollar. Between January and m id-July 1973, the dollar depreciated by an average of nearly 10 per cent against m ajor for eign currencies. (Developm ents in foreign exchange m arkets in 1973 are discussed at length in the Septem ber 1973 and M arch 1974 B u l l e t i n s .) The situation reversed in the second half of 1973. The dollar exchange rate stabilized in the third quarter with the em ergence of a U .S. trade surplus, and rose strongly following the oil crisis in October because of expectations that the paym ents position of foreign industrial countries would be more adversely affected than that of the United States. M eanw hile, as foreign countries sold dollars to slow the rise in the value of the dollar against their currencies, the official reserve transactions balance showed a large surplus. A more useful measure of the underlying trends in the balance of paym ents is the basic balance— the sum of trade and other current-account transactions and long-term capital flows. Early in 1973, the basic balance was in deficit, but it m oved into surplus by m idyear. For the year as a whole there was a net surplus, of $1.2 billion, the first surplus since 1957. This large swing from a deficit of $10 billion in 1972 was the result of a dram atic im provem ent in the current account, as exports of goods and services exceeded imports by nearly $7 billion in 1973. Net long-term capital flows were alm ost the same as in 1972, but there were im portant changes in the com position of capital flows during 1973. MERCHANDISE TRADE The U .S. trade balance was in surplus by $0.7 billion in 1973, after having registered a deficit of nearly $7 billion in 1972 and of $2.7 billion in 1971. The trade balance showed a steady im provem ent throughout 1973, shifting into a surplus after m idyear. The largest im provem ent was with Japan and the six original m em bers of the European Econom ic Com m unity, the countries against which the dollar had depreciated the most. The turnaround in the U .S. balance of trade in 1973 was sparked by an increase of 44 per cent in the value of exports, which far exceeded the 25 per cent rise in im ports. The exceptional increase in these values reflected largely the sharp advances in prices of both exports and imports. The average price of U .S. exports rose nearly 17 per cent in 1973, about a third of the increase in total value. The rise in import prices was equally large and accounted for the m ajor portion of the increased value of imports. Three factors that had major effects on both the volum es and the prices of U .S. trade flows in 1973 were the depreciation of 238 FEDERAL RESERVE BULLETIN □ APRIL 1974 CHART 1 U.S. TRADE BALANCE improves in 1973 Dept, of Commerce data at seasonally adjusted annual rates, balance of payments basis. “Real” is in terms of 1967 dollars. the dollar, the sharp acceleration in world econom ic activity, and poor harvests abroad. The depreciation of the dollar, which im proved the com petitive position of the United States, resulted in higher volum es of exports and lower volum es of imports. Because of the lagged response of international trade flows to exchange rate realignm ents, 1973 was the first year in which significant volum e effects were felt from the depreciation that had begun in the second quarter of 1971. Higher dollar prices for both exports and imports have also resulted from the depreciation of the dollar. For basic com m odities, which are traded com petitively at sim ilar prices throughout the w orld, dollar prices have risen partly because the depreciation of the dollar has meant that foreign buyers, with the same local currency expenditures, can purchase (and spend) more dollars. For finished goods, which are more heterogeneous, dollar prices have also risen U.S. AGRICULTURAL EXPORTS CURRENTDOLLARS 1967 DOLLARS Dept, of Commerce data at seasonally adjusted annual rates, balance of payments basis. by amounts that reflect Producers’ judgm ents about their buyers’ sensitivity to price changes. This applies to goods sold by U .S. producers in foreign markets and to goods m arketed by foreign suppliers in the United States. M ore im portantly, the unusual world econom ic situation— with nearly all industrial countries, including the United States, in an expansionary phase at the same tim e— led to a sharp increase in both the volume and the value of world trade. This acceleration in world econom ic activity led to the sharpest increases in basic com m odity prices since the Korean war. These increases were attributable, in part, to low inventories of com m odities at the beginning of the upswing and, in part, to a rekindling of inflationary expectations, which shifted dem and toward goods and away from financial assets. U.S. BALANCE OF PAYMENTS NONAGRICULTURAL EXPORTS INDUSTRIALSUPPLIES CURRENTDOLLARS 1967DOLLARS FINISHEDMANUFACTURES CURRENTDOLLARS Dept, of Commerce data at seasonally adjusted annual rates, end-use commodity categories. WORLD EXPORTS OF MANUFACTURES Dept, of Commerce data at season ally adjusted annual rates. 239 Exports. In 1973 U .S. exports were $70.3 billion, com pared with $48.8 billion in 1972. Nearly one-half of the increase in total exports last year resulted from a near-doubling in the value of agricultural exports to $18 billion. Prices of agricultural exports rose by more than 50 per cent and volume by 25 per cent. The extraordinary increase in dem and for U .S. agricultural products was caused prim arily by poor harvests in other major grain-producing countries. In addition to very heavy shipm ents of U .S. grain to the Soviet U nion, large quantities were sold to Japan, India, and Korea. The People’s Republic of China, which also becam e a major buyer of U .S. wheat, was second only to the Soviet Union as a m arket in 1973. Rising dem and and limited supplies of alternative protein feeds helped increase soybean exports. For exam ple, the revaluation of the yen and uncertainties about future supply availabilities en couraged the Japanese, who rely heavily on im ported foodstuffs, to buy large quantities of U .S. soybeans. Because of the sharp increase in soybean exports in the first half of 1973, export controls were tem porarily imposed in July to preserve dom estic stocks. Cotton was the other major agricultural com m odity that showed a large export gain in 1973; these exports increased because of a rising dem and for cotton fabrics and a limited supply of m an-m ade fibers. U .S. exports of nonagricultural goods rose from $39.3 billion in 1972 to $52.4 billion in 1973. There were large gains in both industrial materials and finished goods. In addition to the stimulus provided by higher foreign industrial output and the dollar depre ciation, the dom estic price control program played a role in en couraging exports of industrial m aterials. Besides such traditional export items as copper and alum inum , there were also shipm ents of other nonferrous m etals, such as lead and zinc, which are not ordinarily exported. Exports of steel scrap rose so rapidly in the first half of 1973 that export controls were imposed to ease the pressures on dom estic supply. In 1973 U .S. exports of both m achinery and consum er goods also rose significantly. M ost of the increase in exports of these goods was in volume term s, since their prices rose only slightly until the latter part of the year. The upturn in foreign dem and accounted in part for these increases in volum e. The fact that dollar export prices showed only a m oderate increase after the depreciation of the dollar indicates that exports were also helped by a substantial drop in their costs to foreign custom ers in terms of their own currencies. As a consequence, the U .S. share of world exports of m anufactures in real terms increased in 1973 after declining steadily from the m id -1960’s to 1972. 240 MERCHANDISE IMPORTS EXCLUDING FUELS Dept, of Commerce data at season ally adjusted annual rates. FEDERAL RESERVE BULLETIN □ APRIL 1974 Imports. In 1973 the value of U .S. im ports was $69.6 billion, nearly $14 billion higher than in 1972. Fuel imports accounted for $4 billion of this increase, as both the volum e and the value of im ported fuels rose. All of the increase in the volum e of fuels was in the first three quarters of the year, before the M iddle East em bargo. During that period, imports of petroleum averaged 6.5 million barrels a day, com pared with an average of 5 m illion barrels a day in 1972. W ith the em bargo, imports dropped, averaging about 6 m illion barrels a day in both January and February 1974. H ow ever, as a result of the increases in prices im posed by the m ajor oil-exporting countries, the average import price of oil rose to $9.25 a barrel in February 1974, nearly triple the average price in the months preceding the em bargo. W ith the lifting of the em bargo at the end of M arch, the volum e of oil im ported to the United States is expected to return to close to pre-em bargo rates by the m iddle of 1974. In 1973 U .S. imports of nonfuel products rose $10 billion to about $60.8 billion, as imports of com m odities in all major cate gories— food, industrial supplies, capital goods, and consum er goods— rose in value. How ever, nearly all of the increase in value represented higher prices. In fact, the volum e of total nonfuel imports did not grow after the first quarter of 1973. Im ports of industrial supplies, excluding fuel, were little changed in volum e from 1972 despite the strong growth of U .S. output in 1973. Capacity limitations abroad may have restrained the growth of these imports. In addition, U .S. G overnm ent sales from stockpiles of such com m odities as alum inum may have reduced the need for imports of some industrial m aterials. The perform ance of imports of finished goods gives evidence of the continuing impact of the depreciation of the dollar. After having shown large advances in previous years, the volumes of both imported consum er durable and im ported consum er nondura ble goods increased only m arginally in 1973 or even declined in spite of the rapid growth in the U .S. econom y. For exam ple, the quantity of radios and television sets im ported in 1973 was only slightly higher than in 1972. Im ports of these goods rose from Taiw an, Hong Kong, and Korea— countries that had not allowed the value of their currencies against the dollar to change signifi cantly in the last 2 years. In contrast, im ports of these products from Japan, still the m ajor supplier, have fallen sharply since 1971, in part because the depreciation of the dollar encouraged the establishm ent of production facilities in the United States by Japa nese firms. Voluntary export constraints may also have been a factor in reducing imports from Japan. Im ports of cars from Europe and Japan declined in quantity for the second straight year. The realignm ent of exchange rates proba U.S. BALANCE OF PAYMENTS 241 bly encouraged producers in those countries to divert their ship m ents to non-U .S. m arkets. H ow ever, sales in this country of foreign cars rem ained strong in 1973, and dealers drew down inventories. The strength in sales of these cars in the first part of the year reflected heavy “ bargain buying” out of existing inventories follow ing the U .S. devaluation in February 1973. Toward the end of the year, as a result of the energy crisis, sales were boosted by the shift toward sm aller cars. An exception to the slowdown in the volum e of imports of finished goods last year was the continued increase in imports of capital equipm ent. Imports of agricultural m achinery advanced sharply in response to expanded U .S. production of grain, and the rise in imports of other industrial equipm ent paralleled the expansion in dom estic investm ent. TRADE IMPACT ON U.S. ECONOMY The dram atic swing in the trade position in 1973 and the steep rises in prices of exports and imports had pronounced impacts on both prices and output in the United States. Perhaps the largest im pact on dom estic prices resulted from the very sharp rises in the prices of foodstuffs and basic industrial m aterials— goods that are m arketed com petitively at sim ilar dollar prices throughout the world. As foreign buyers sought large quantities of U .S. agricultural goods that were in short supply and that were not subject to dom estic price controls, the dollar prices of these com m odities rose, both abroad and in the United States. For those basic com m odities that were generally under price controls, the higher export and import prices could not be im m edi ately transm itted to the dom estic prices. Consequently, with do mestic prices lower than foreign prices, dom estic firms were in duced to expand exports, and shortages in the United States resulted. For exam ple, as a result of the 35 per cent average spread between export and dom estic prices in 1973, U .S. producers of fertilizers exported such a large portion of their output that dom estic supplies of some types of fertilizer were actually reduced. In recognition of this type of problem , the planned decontrol of prices was accelerated and the Cost of Living Council rem oved m any com m odities from controls after m id-1973. Am ong those exem pted from control were prices of copper scrap in A ugust, fertilizers in O ctober, and many nonferrous metals at the beginning of D e cem ber. W ith the removal of the controls, dom estic prices of these com m odities m oved up sharply toward world price levels. From the fourth quarter of 1972 to the fourth quarter of 1973, U .S. w holesale prices rose by nearly 40 per cent for foodstuffs and by m ore than 45 per cent for other basic industrial m aterials. It is estim ated that about a third of the 7.2 per cent rise in the GNP 242 Changes in OUTPUT and NET EXPORTS GNPGOODS OUTPUT NETEXPORTS ■riflft Absolute change in quantity from preceding quarter at seasonally ad justed annual rates. SERVICE TRANSACTIONS FEDERAL RESERVE BULLETIN □ APRIL 1974 deflator during these four quarters is attributable to the higher prices of these basic com m odities. The dom estic price level may also be affected when prices of im ported finished goods rise. H ow ever, increases in these prices should not have a major direct impact on the U .S. price level, since imports of finished goods account for a relatively small portion of dom estic expenditures. More im portant would be the indirect effect on the U.S. price level that would occur if dom estic producers decided to raise their own prices because of reduced com petition from abroad. Pressures on the dom estic price level may also have resulted from the increased production needed to supply the larger volume of net exports (exports minus imports) that accom panied the dollar depreciation. As dom estic production for both exports and substitutes for imports expanded in 1973, the resultant pressure on capacity may have been sufficient to raise costs and prices, given the existing high rates of capacity utilization. The metals industry provides an illustration. In 1973, net exports of metals increased, absorbing an additional 4 per cent of industry output. W ithout such a change, the average capacity utilization rate for the year might have been as much as 3 percentage points lower than it actually was. According to the Federal Reserve series, the capacity utilization rate for metals in 1973 was 91.7 per cent, the highest level since the m id-1950’s. To generalize, the increase in the volum e of net exports in 1973 represented about 20 per cent of the increase in the volume of total U .S. goods output, which rose by about 7.5 per cent from 1972 to 1973. As dom estic dem and began to slow after the first quarter of 1973, the contribution of the increase in net exports to the growth of dom estic goods output was even greater. In the fourth quarter the rise in net exports represented nearly one-half the total increase in output of goods. Thus there are several channels through which the increases in prices of exports or imports have affected dom estic prices. One should not conclude, how ever, that the depreciation of the dollar, which was needed to correct the U .S. balance of paym ents position, was the m ajor source of inflationary pressure. R ather it was probably the cum ulative worldwide dem and pressures that provided the m ainspring for the current inflationary acceleration. The expansion in world econom ic activity, the depreciation of the dollar, and the Middle East crisis significantly affected service transactions. Net investm ent income increased by more than $2 billion in 1973. Receipts of income and fees from U .S. direct investm ents abroad rose by approxim ately $3.5 billion, com pared with an increase of $1 billion in 1972 and of $1.5 billion in 1971. U.S. BALANCE OF PAYMENTS 243 The large increase in direct investm ent receipts was mainly the result of a sharp rise in earnings, particularly in the fourth quarter, of petroleum com panies abroad. In addition, with higher interest rates abroad, U .S. earnings on other investm ent assets were nearly $1 billion higher than they had been in 1972. H ow ever, higher interest rates in the United States, com bined with an increase in the am ount of U .S. liabilities to foreigners, raised income paym ents to foreigners by more than $2.5 billion. Net military sales also increased substantially last year as shipm ents of military equipm ent rose sharply, particularly to Israel in the fourth quarter. U .S. m ilitary expenditures abroad were slightly lower in 1973 than in 1972. Net paym ents on travel and transportation were down by nearly $500 m illion in 1973, the first decline in such paym ents since 1968. The depreciation of the dollar encouraged foreigners to travel in the United States and slowed the rate of increase in U .S. travel abroad. CAPITAL FLOWS DIRECT INVESTMENT Seasonally adjusted annual rates. The b a la n c e on p r iv a te lo n g -term c a p ita l showed a slight deficit— about $0.4 billion— for the year. An increase of 43 per cent in direct investm ent outflows, from $3.4 billion in 1972 to $4.9 billion in 1973, was offset by a phenom enal increase in foreign direct investm ent in the United States, from $0.2 billion to $2.1 billion, and by a continued high level of foreign purchases of U .S. stocks and bonds. M uch of the d ir e c t in ve stm e n t o u tflow took place in the first quarter, when U .S. corporations probably shifted funds to their foreign affiliates in anticipation of a decline in the foreign exchange value of the dollar. This outflow increased considerably again in the fourth quarter, following the relaxation of controls by the Office of Foreign Direct Investm ent in Novem ber and Decem ber. This would seem to indicate that U .S. parent com panies were substitut ing U .S. funds for foreign funds that because of the controls had been used to finance foreign affiliates. Capital expenditures by the foreign affiliates of petroleum com panies were estim ated to have the sharpest increases in 1973, espe cially for the developm ent of new supplies from areas such as the North Sea and Indonesia. The biggest relative increases were in investm ent outflows to Japan, following the relaxation by that country of foreign investm ent controls, and to the United K ingdom , with an im proved com petitive position following successive de valuations of the pound. The surge in the inflow o f fo re ig n d ir e c t in ve stm e n t to the United States in 1973 was a much greater departure from earlier experi ence. This investm ent was widely distributed am ong m anufac turing, retail, and service industries and included sizable takeovers 244 COMPARATIVE UNIT LABOR COSTS Unit labor costs are in U.S. dollars. PRIVATE CAPITAL RECORDED FLOWS RECENT DEVELOPMENTS AND OUTLOOK FEDERAL RESERVE BULLETIN □ APRIL 1974 of existing U .S. concerns as well as investm ents in new enterprises. M ost of the inflow came from the United Kingdom , Japan, and Canada. Probably the most im portant new stimulus to such an inflow was the im provem ent that had taken place over the past several years in the U .S. com petitive position. W ages and other costs have risen less in the United States than in other industrial countries in recent years, and the dollar depreciation between m id -1970 and m id -1973 reduced the dollar cost of U .S. labor relative to foreign labor by an average of 20 per cent. For exam ple, increases in unit labor costs m easured in U .S. dollars were much greater in Japan and Germ any than in the United States over the 1970-73 period. Other long-term capital flows in 1973 were dom inated by a continued high level of foreign purchases of U .S. stocks and bonds, though the inflow dipped abruptly in the second quarter, when the dollar was approaching its lowest point, and again in the fourth quarter, when stock prices fell off sharply. There was a net outflow of p r iv a te sh o rt-term c a p ita l (excluding errors and om issions) of about $1.7 billion for the year. This m odest annual net flow, how ever, included huge outflows early in the year and large inflows later. The net outflow for the year may have been related to an expansion of trade credit, associated with the sharp increase in the value of U .S. exports in 1973. During the first quarter of 1973 the recorded am ount of short-term capital outflows exceeded inflows by $5.7 billion, and another large net outflow was probably included in the errors and om issions figure of $3.9 billion. A flow of this m agnitude would have to be attributed largely to speculation that the dollar would be devalued or other currencies revalued. In the second and third quarters there were m oderate net inflows of short-term capital, after market interest rates in the United States moved up sharply. Then in the fourth quarter, the net inflow rose substantially to nearly $3.0 billion. This inflow persisted despite a decline in short-term U .S. interest rates relative to those abroad, suggesting that the market anticipated an appreciation of the dollar. The effects of the energy crisis and the removal of capital controls in January of this year are two reasons why the trends in the balance of paym ents over the course of 1973 cannot readily be projected into 1974. The trade surplus in January-F ebruary declined from the high levels in the fourth quarter of 1973 as a consequence of sharply higher oil prices. Prelim inary data show that the official settlem ents balance shifted into deficit in February as the net short-term private capital inflow of late 1973 was reversed. At the same tim e, after appreciating by 14 per cent on average from O ctober 1973 to late January 1974, the dollar depreciated by more than 8 per cent from late January to early April. U.S. BALANCE OF PAYMENTS 245 In the com ing m onths, both higher prices of oil im ports and a reduced value of agricultural exports will have negative influences on the trade balance. The continuation of inflation, both here and abroad, is expected to raise the values of other exports and imports in 1974. H ow ever, it is difficult to make any assessm ent of the net effect of these price m ovem ents on trade. The net balance on services this year will be influenced mainly by changes in income flows. Changes in incom e receipts, as in 1973, will reflect largely the m agnitude of the earnings of oil com panies operating abroad. Incom e paym ents will be affected prim arily by interest costs on accum ulated liabilities to foreigners. The outlook for capital flows is even more uncertain than that for trade and service flows. A great deal depends upon the impact of the removal of capital controls, and on the direction of invest ment in world capital m arkets of the huge additional revenues being accum ulated by the oil-producing countries. The capital controls that were rem oved in late January of this year included the interest equalization tax on U .S. purchases of certain foreign securities, Federal Reserve voluntary foreign credit restraint guidelines to limit credit extended to foreigners by U .S. banks and other financial institutions, and C om m erce Departm ent limits on the transfers of U .S. funds to foreign affiliates of U .S. corporations. W hile the impact of the rem oval of these controls is still unclear, capital will be freer to m ove into and out of the United States in response to speculative pressures and changes in relative interest rates. A recent Com m erce D epartm ent survey has indicated that foreign affiliates of U .S. corporations plan another year of large spending for plant and equipm ent in 1974. Finally, the growth in international paym ents to oil-producing countries and the investm ent of these revenues in the Euro-currency market and national financial m arkets will have im portant conse quences for the U .S. capital account position. The foreign exchange earnings of m ajor oil-exporting countries in 1974 could am ount to more than $80 billion, up from $27 billion in 1973. The great bulk of the increased earnings will probably not be spent on imports but rather will be invested in international capital m arkets. In the past, the greater part of the revenue from oil has been deposited in the Euro-currency m arket, and that market is probably capable of absorbing a good portion of the increase in oil revenue. The extent to which these additional flows into the Euro-currency market will affect the U .S. capital account depends on the asset preferences of the oil producers, as well as of other m arket participants, and on relative conditions in various m oney and capital m arkets. □ C apacity Utilization for M ajor Materials: Revised Measures The Board’s quarterly measures of output, ca pacity, and capacity utilization for major mate rials, published initially in the B u l l e t in for August 1973, have been expanded and im proved. The important changes encompass (1) the addition of three series for the chemicals industry, (2) a broadened representation of the steel industry, (3) the publication of data for six industrial subgroups, (4) a modified treat ment of the data for capacity utilization in the petroleum refining industry, and (5) an im proved method of aggregating the capacity uti lization series. According to the revised series, aggregate utilization is generally within 1 to 2 percentage points of the old level, and the quarterly move ments are similar to the old series, as shown in Chart 1. The new method of aggregation has eliminated the erratic quarterly movements that had occurred in the old series for aggregate N o t e . — This article was prepared by Nathan Ed monson of the Board’s Business Conditions Section, Division of Research and Statistics. capacity. Methods by which the data are esti mated and aggregated are summarized on pages 250 and 251. NEW SERIES AND WEIGHTS A notable improvement in the major materials series is the addition of three series in the chemicals industry— plastics materials, syn thetic rubber, and basic inorganic chemicals n.e.c.— as represented in the total industrial production (IP) index. Table 1 lists all of the individual materials series represented, together with their relative importance in both the major materials measure and in IP. Prior to the addi tion of these three series for chemicals, the only chemicals component in the major materials measure had been man-made fibers. As a result of these additions there has been a substantial improvement in the measurement of capacity utilization in the chemicals industry. The intro duction of plastics materials is especially im portant to this series’ usefulness as an indicator of capacity utilization conditions for all materi als because of the degree of substitutability that CHART 1 CAPACITY UTILIZATION for MAJOR MATERIALS: OLD and NEW 246 exists among plastics, wood products, metals, and paper in many applications. Another change that affected both the series for individual output and that for capacity utili zation relates to the steel industry. Generally speaking, the underlying capacity data for that industry refer only to the output of raw steel. The value-added weight for raw steel, however, TABLE 1 CLASSIFICATION AND WEIGHTS OF MAJOR MATERIALS IN INDUSTRIAL PRODUCTION INDEX Group and series SIC number 100.00 37.79 Total IP ............................. Materials in IP ................. Major materials* ................ Durable* ............................ Plywood and prefab, products Cement ................................ Metals* .............................. Basic iron and steel .......... Pig iron ........................ Raw steel ..................... Coke and products __ Copper ..... ...................... Aluminum ........................ Nondurable* ...................... Fabrics ................................ Cotton ............................. Man-made ........................ Wool .............................. Cotton and man-made yarns .. Paper and pulp* .................. Wood pulp ...................... Paper .............................. Paperboard ...................... Chemicals and petroleum* __ Basic inorganic chemicals n.e.c. ........................... Plastics materials .............. Synthetic rubber .............. Man-made fibers .............. Petroleum refining ............ Supplemental groups: Textiles* ......................... Fabrics and yarns ......... Man-made fibers ............ Proportion of value added in 1967 8.45 100.00 2.27 .29 .27 1.71 3334 1.34 .46 .72 .16 .10 .27 26.86 3.43 3.20 20.24 221-4 6.18 1.05 73.14 12.43 .27 1.40 .51 3.20 16.57 2432,3 324 331 part 221,4 222 223 2281,2,4 261 262 263 .61 .30 .14 .54 .35 15.86 5.44 8.52 1.89 1.18 3.20 1.22 3.55 1.66 6.04 6.39 4.14 3.46 40.95 2819 part 2821 2822 2823,4 291,9 .55 .55 .13 .58 1.65 6.51 6.51 1.54 6.86 19.53 221-4, 2281,2,4 2823,4 1.90 1.32 .58 22.49 15.63 6.86 *Capacity, output, and utilization data for these series are available separately. Output data for the other series listed are shown separately in IP. Note.—Source and description of output series are shown in Table A2 in Industrial Production—1971 Edition. Capacity data are from the same sources except in the following in stances: steel (since 1959), various industry sources; copper and aluminum, American Bureau of Metal Statistics Year book; paper series, American Paper Institute; petroleum refin ing, Oil & Gas Journal; and synthetic rubber and basic inor ganic chemicals (n.e.c.), Stanford Research Institute Chemi cal Economics Handbook. is smaller relative to the value-added weight of the parts of other industries— for example, paper, pulp, and board— used in the major ma terials measure than is the weight of the entire steel industry relative to the entirety of these same other industries. Consequently, it was felt that the impact of steel industry events on the economy had been unrealistically understated in the weighting system used previously. In the new aggregation the weight of the steel series has been increased to reflect total basic iron and steel as represented in IP, rather than raw steel only. This change is in keeping with the close tech nological relation between growth in raw steel capacity and growth in capacity in the broader “ basic iron and steel” category, which includes pig iron and coke in addition to raw steel. This change results in steel being shown more realis tically in the major materials measure. Among the individual industries only one change was made— for petroleum refining— to comply with the American Petroleum Institute’s revised method of calculating refinery operating rates. These rates had previously been based on the ratio of crude oil runs to the capacity of crude distillation units. Although other materi als— such as unfinished oils and natural gas liquids— have been included with crude oil in increasingly significant volumes for a number of years, these had not been represented in the earlier compilations. The revised data, which recognize these changes in refinery practices, raised the refining utilization rates by about 5 percentage points in 1973.1 Because the data necessary to carry out this revision prior to 1973 are not available, the amount of the revision change was distributed back to 1964, when inputs other than crude oil were much less significant than they are today. The proportions shown in Table 1 for the major materials series are based on value-added amounts in 1967, which are used to combine *In addition to the revised measures of refinery input, the American Petroleum Institute has made an allowance in its capacity measures for existing refining capacity that does not meet pollution control standards. Such an allowance is not used for the major materials capacity calculations of refining capacity mainly because it was assumed that pollution control standards would be re laxed somewhat during a shortage of petroleum prod ucts. 247 248 FEDERAL RESERVE BULLETIN □ APRIL 1974 the series beginning with the first quarter of 1967. As in the IP index, linked weights for initial-year periods— 1963, 1958, 1954, and 1947— are used to aggregate the series for the period prior to 1967. Revised historical data for capacity, output, and utilization rates appear in Table 2 below. Historical utilization rate data for the six group ings are shown in Table 3. IMPACT OF THE REVISIONS As formerly constituted— that is, before both the addition of the chemicals series and the increase in the weight for steel— the major materials group accounted for 6.6 per cent of total IP value added. As a result of the chemicals addi tions and the steel re weighting, the major m ate rials series represent 8.5 per cent of total IP and 9.5 per cent of value added in manufac turing in 1967. The revision of the petroleum refining series did not affect the weights of the major materials series. Chart 1 shows the extent to which the revision has changed the historical picture for the old utilization series in terms of levels and cyclical patterns. In the third quarter of 1973 the revised NEW INDUSTRY GROUPINGS The revisions in representation and weights make possible publication of six new industry groupings of the materials series. There is now a division between durable and nondurable products. In addition, separate subtotals are compiled for metals, textiles, paper, and chem icals and petroleum, as shown in Table 1. This table identifies the individual series by classifi cation and relative importance in the total IP measure and by market grouping for materials. TABLE 2 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION IN MAJOR MATERIALS Seasonally adjusted, 1967 output = 100 1 II IV III Avg. I II III IV Avg. I 11 in IV Avg. Year 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 ......... 41.7 41.0 43 3 ......... 51.4 ......... 48.5 ......... 52.7 ......... 49.2 ......... 57.0 ......... 63.3 ......... 62.8 55.1 ......... 67.3 ......... 71.4 ......... 63.4 ......... 75.7 ......... 76.4 ......... 83.3 43.2 37.9 45 3 52.1 45.7 54.8 49.7 60.3 63.0 62.2 54.6 71.8 68.3 67.9 73.6 80.3 85.6 42.4 38.8 47 7 49.2 48.5 53.0 50.8 61.8 59.4 63.6 60.7 60.5 41.4 40.9 49 4 47*9 51.9 50.0 53.5 62.5 63.8 60.2 64.7 65.2 42.2 39.7 46 4 50.1 48.7 52.6 50.8 60.4 62.4 62.2 58.8 66.2 66.1 63.3 67.3 72.6 74.0 79.7 88.9 ......... 92.1 92.9 95.5 ......... 98.5 100.5 102.4 ......... 99.1 97.9 98.8 ......... 104.8 107.7 107.3 ......... 110.9 112.8 114.6 ......... 112.7 111.9 113.3 ......... 115.0 117.3 113.1 ......... 120.9 124.2 128.1 ......... 133.8 135.1 138.4 ......... 136.0P Capacity utilization Capacity Output , 75.1 69.7 75.0 74.6 81.1 79.4 91.0 87.2 94.8 93.8 100.8 100.5 103.9 99.9 108.5 107.1 116.1 113.6 113.1 112.7 115.6 115.3 131.6 126.2 138.3P 136.4 48.9 51.5 53 3 55^6 57.4 60.1 63.2 66.8 69.4 73.0 77.2 81.1 84.7 87.2 90.8 93.8 96.9 101.3 106.9 112.7 117.2 124.3 49.6 51.9 53.9 56.0 58.1 60.8 64.1 67.4 70.2 74.0 78.1 82.2 85.2 88.0 91.6 94.5 97.9 50.2 52.3 54.5 56.5 58.7 61.6 65.1 50.9 52.8 55 j 56*9 59.4 62.3 71.1 75.1 79.1 83.0 85.8 88.8 92.4 95.3 99.0 102.6 104.0 108.4 110.0 113.7 114.8 119.1 120.9 125.5 126.9 72.1 76.2 80.1 83.9 86.4 89.7 93.1 95.9 99.9 105.5 111.3 115.8 122.5 128.1 129.0 130.3 133.1 134.4 138.8 140.1 144.2 145.5 149.2P 66.0 68.6 68.0 131.5 135.9 141.4 146.7 132.2 137.2 142.9 148.0 49.9 52.1 54.2 563 58.4 61.2 64.6 67.7 70.7 74.6 78.6 82.5 85.5 88.4 92.0 94.9 98.4 103.4 109.1 114.3 119.9 126.2 130.7 135.1 140.8 146.1 85.3 79.7 81.3 92.3 84.5 87.7 77.8 85.3 91.3 85.9 71.3 83.0 84.3 72.7 83.3 81.4 87.1 73.1 84 0 92.9 78.7 90.0 77.5 89.4 89.7 84.1 69.9 87.4 90.8 92.2 87.9 89.4 89.2 87.3 86.4 87.1 92.8 91.2P 90.5 92.7 86.1 90.5 89.9 85.9 87.3 88.7 92.8 80.1 77.1 80.4 85.0 86.0 87.5 84.4 74.2 87.5 87*1 82.6 86.0 78.0 90.9 83.5 84.6 76.8 72.9 77.0 81.7 80.1 83.7 89.7 91.8 93.0 86.1 88.7 90.3 86.2 83.2 90.6 94.3 81.2 77.4 89.6 84’1 87.5 80.3 81.1 91.1 88.4 78.9 80.9 77.7 73.3 83.7 80.6 84.6 91.1 89.9 90.6 89.7 88.5 90.7 85.5 84.3 92.1 93.4 84.5 76.1 85.6 89.1 83.3 86.0 78.6 89.2 88.3 83.4 74.7 80.2 78.7 78.8 81.1 83.7 88.6 90.8 92.1 87.4 89.3 90.0 86.2 85.3 89.6 93.3 Note.—Calculation of output and capacity rates may differ slightly from the utilization rate shown because of rounding. Sources are listed in note to Table 1. p Preliminary. REVISED CAPACITY UTILIZATION MEASURES 249 TABLE 3 CAPACITY UTILIZATION RATES FOR SELECTED INDUSTRY GROUPS OF MAJOR MATERIALS Seasonally adjusted data in per cent Year I II III IV Avg. I II Durable goods 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 197° 1973 ......... ...... . ......... . ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... . .. ......... ......... ......... ......... ......... 84 4 8? 1 85 3 78 1 78 9 87 9 95 .5 95 4 89 8 73 0 9? 5 90 1 75 9 73 1 85 0 92 1 93 5 92 8 87 4 86 0 62 2 60 8 80 9 88 1 83 1 72 6 58 7 68 0 78 2 69 1 73 4 82 9 80 9 84 0 90 5 89 9 87..1 88.0 82 .6 79..0 84 .0 86.5 85.9 85.9 83.7 82. 1 85.5 85..7 80.3 82.3 90 .0 88.8 ......... ......... ......... ......... ......... ......... ......... ......... . ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... ......... 80.0 70.6 76.9 86.0 74.1 79.5 70.3 82.7 89.5 84.9 72.7 85 .1 85 .2 77.3 88.1 85.5 90.7 94..2 94. 3 83..9 91..2 88.8 84.7 82. 6 86. 1 94. 6 84 .2 64.2 77.1 85.9 73 .8 84.5 73.5 87 1 87.4 85 3 73 3 60.7 74 4 91 8 92.8 87 8 91 6 90.1 93 2 76 1 91.3 82 5 87 1 78.2 87 0 73 3 79.0 75 3 96 3 93.5 91 7 75 9 93.6 88 9 91 0 76.7 85 3 72 8 78.1 68 5 48 3 65.2 70 6 68 5 61.7 71 5 79 5 79.5 71 4 69 3 72.2 72 2 77 3 77.8 77 8 89 3 93.2 86 9 91 4 83.3 88 8 90. 3 88.0 88.4 80..7 84.4 81 .7 81. 0 82.9 83. 6 87. 8 91.0 87. 6 84. 6 84.1 83. 6 69 8 74.0 78..8 86.9 89.1 84..7 94. 0 94.3 91..8 86.2 86.0 82.1 71 .1 89.4 84..2 80.7 87,.3 87 .1 90.2 94..2 95..7 83,.7 90..3 88.3 81.,7 84.9 89..2 94. 6 78.1 69 .0 81.9 78 .0 80.4 79.4 75 .2 86.9 84.5 81 .1 77.5 87.4 79..4 82.5 86.7 88.9 92 .0 93..4 92. 6 83. 3 90.,2 88.1 80.9 85. 1 88.8 94. 6 IV Avg. 88.7 86.6 93.3 91.9 82.7 76.1 81.7 91.3 97 .1 98 .6 99 .3 97 .3 94 .9 70 .8 74 .1 95.3 95 .8 95 .2 73..5 71..0 73..7 83.5 92 .8 98 .8 94,.0 94.3 72..2 90 6 87..7 95 .0 58.4 55.4 69 .6 79. 6 88.5 36.2 84.4 70 .1 65 .1 52..9 64.5 79..5 79..0 66.1 66.3 71..7 83. 8 77..0 80 .2 84.4 91.7 94. 1 92. 0 94..2 87..4 89. 8 94.9 85..7 81..2 82 . 1 85.,7 88.7 80 1 86.6 86.8 90..6 85. 0 83. 1 86 8 85.9 85.3 64 .0 76. 0 79. 8 85 .6 88.0 87..4 94.9 78.4 70.4 79.9 80.7 77.3 79.0 74.4 88.2 86.0 86.1 86.5 81.5 75 .8 86.4 78.0 81.8 83.8 76.6 86.3 86.8 90.1 93.0 93.1 87.0 90.1 89.3 81.4 81 .7 87 .2 87.9 91.5 93.7 92.4 85..2 90..2 86.1 87 .8 81.1 82. 1 84.7 84..3 91.9 89. 0 94.3 94..5 917CT 83.4 86.9 96.4 90.1 89 1 86.7 89.9 95 .0 89.6 80.7 85.9 88.4 85 .0 89.3 90.7 91..7 94. 2 95..8 91. 3 90. 1 95.3 93. 2 91. 8 96. 2 96. 1 93 6 75 .6 89.7 100.2 85 .6 90.9 90.0 77.6 92.1 94.4 81 .2 90 7 86.2 86.2 92.5 93.1 94.7 93 .2 86.9 84.2 78.3 82 .2 89 .1 88.8 87..5 86.2 87 .4 87.6 89.5 89 9 93..5 92..5 95..5 89..4 91. 6 95.9 91.7 91. 6 96. 6 95. 6 89.5 91.3 94 .2 94..7 95.7 87.7 92,.4 95. 9 90. 3 93, 0 97. 1 98. 0 93.5 56.2 96.5 96.2 94.1 85.2 76.3 95 .1 97 .0 77 .1 76.4 59..0 57.5 79 .0 70 .0 77..1 97 .0 81.5 93 .1 86..9 81..5 93..7 85.,3 69 .0 89..3 96..4 90.5 76.7 91.7 97.8 83.5 92.9 73.6 92.6 89.3 87.6 65.0 65.8 69.3 69.0 70.3 77.4 88.3 90.4 91.3 84.0 84.0 89.4 85.1 76.1 82.7 91.7 III IV Avg. 86.3 78.9 82.7 92 .3 83 .9 87 .2 79 .2 86.1 91 .2 86.0 75..8 84..1 84. 9 79..7 85..8 85. 1 88.2 91. 0 94.,3 90. 0 91. 6 90. 5 88.6 86.8 89.5 93.7 89.3 72.4 83.7 93 . 1 81 .0 90.8 80 1 89 .0 89 .1 83..9 74..5 87..0 83. 9 81. 6 85..7 85..9 89. 0 90. 8 94.1 89. 0 92. 0 91.4 87.3 87. 8 90.9 94. 2 84.4 75 .1 87 .2 86.7 85 .1 86.5 80.6 89.3 87.4 82.7 78,.8 85,.5 81..4 82..8 85.,2 86.6 89. 9 91.9 ^4.,2 88.3 91. 7 91 3 86.7 88. 1 91. 8 94.4 88.0 90.7 90.0 91.9 89.3 80.3 89.2 81.5 80.5 90.8 87.5 89.0 88.9 95.3 95 .0 96.4 92.7 85.9 89.6 82.9 87.9 89.9 89.9 92.7 85.9 86.7 78 .6 79.8 79.8 92.6 86.0 88.6 88.9 93.5 89.9 87.5 85.3 86.1 85.9 84.2 83.3 81.6 74.4 73.2 77 0 84 .6 94.4 90.3 86.7 89.0 87.7 94 .6 91.3 83.6 85.4 87.5 84.4 90.9 88.4 92 .0 94 .1 95 .2 93.7 88.8 93..3 95. 1 90.,4 93.,7 97.5 96.4 80.2 82.7 89.5 83 .3 87 .3 81.5 82 .6 90 ,8 87..0 80..5 82. 3 84. 1 79. 1 85.7 84.,5 87.,7 90. 2 92.7 91.7 91. 7 90. 7 90. 6 86. 1 88.0 93. 1 93..2 85.1 77.3 85.8 88.9 84.3 86.5 80.6 88.8 88.7 83.3 77.9 85.2 82.3 82.5 85.3 86.3 89.3 91.6 93.7 89.8 91.5 90*9 87.2 87.6 91.3 93.9 Chemicals andI petroleum 87.8 82.4 84.7 82.9 86.6 82.2 81.4 79.0 87 7 77 5 78.7 79 9 89.2 83.2 83 .4 82'’8 91.0 82.9 .0 84.5 93.4 86.5 87 .0 87.2 94.1 88.8 89.5 91 .0 95.2 93.3 93.7 93.4 89.3 90.8 89.5 89.1 91.9 92 .2 92 .8 92.5 95.5 89n 91 .1 90.5 91.4 87,.6 86.9 85. 9 92.5 85.4 87 .0 87, 1 96.9' 88.2 90 .0 91 .1 96.5 Note.—See Table 1 for a description of the composition and weights of these groups. See also Note to Table 2. II Nondurable goods Paper and pulp 71.3 78.0 83.8 73.1 80.7 72.5 78.7 I Metals Textiles 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 I960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 III 92.9 93. 9 93,.3 89.6 90.2 86. l 84.3 91 .2 89.1 90.7 93.7 90.3 87.7 81.3 87.4 81.5 79.9 90.2 88.4 85.0 86.9 80.7 83.5 80.6 76.3 81.7 82.9 76.5 79.8 82. 4 79.7 82'!5 83^0 85.7 84.3 88.2 87.2 91 .2 90.1 91 .2 92.9 93 .1 90.6 91 .0 92.1 89.0 90.1 84. 9 86.3 86.7 86.6 92 .0 90.3 91 9 93.0 250 FEDERAL RESERVE BULLETIN □ APRIL 1974 as well as the old series were at their highest levels since the second quarter of 1951. The new utilization rates have been slightly below the old series since 1968— by about 1 percent age point— largely due to the effects of the three added chemicals series. The slightly larger cyclical variations in the revised capacity utilization series in the 1958-61 period— and especially in late 1959 when there was an extended steel strike— reflect the in creased weight given to the steel industry. In all but four quarters of the 1948-74 period the difference between the old and new series is less than 3 percentage points, and in most quarters it is less than 2 percentage points. Chart 2 shows output and capacity for the major materials group. Of particular interest is the slowdown in capacity growth in 1972 and 1973, which stems largely from the durable goods components of the major materials series. of-year capacity and December output levels (at annual rates) in units appropriate for the indi vidual industry— for example, %tons. These physical unit data are used to estimate prelimin ary utilization rates for December. The prelim inary rates are then used to derive an index of capacity comparable to the IP series by dividing the preliminary rate into the appropriate De cember IP series (not seasonally adjusted). This step, which in effect benchmarks the capacity series to the IP series, is necessary because the value-added weighting system of the IP index causes its series in some instances to have a growth pattern different from that of the equiv alent physical product series. Quarterly esti mates of capacity are derived for most series by interpolating linearly between adjacent pairs of year-end capacity indexes. The quarterly uti lization rate for each industry is quarterly average output (seasonally adjusted) divided by average capacity for the quarter. The procedure by which aggregate figures for capacity utilization for major materials are computed from the individual series has been REVISED METHODOLOGY In general, the capacity utilization rates for individual series are based on estimates of end- CHART 2 OUTPUT and CAPACITY for MAJOR MATERIALS: NEW REVISED CAPACITY UTILIZATION MEASURES revised. Formerly it had been a simple aggrega tion of the individual industry utilization rates using value-added weights. In that procedure the quarterly output series for the individual indus tries were aggregated independently of the utili zation rate aggregation in such a way that the result was consistent with other published in dexes for industrial production. Quarterly ca pacity was then derived as the ratio of output to utilization. This procedure did not prove to be satisfactory, for the capacity series tended to have erratic quarterly movements not justified by the underlying capacity data, which are available only at annual intervals for most in dustries. This problem is corrected by the new procedure, in which individual industry capaci ties and outputs are aggregated by parallel pro cedures— but still independently— and aggre gate utilization is computed as the ratio of output to capacity. Some industry data required special handling. For example, capacity figures for steel and syn thetic rubber have not been available annually since the late 1950’s, but they have been avail able at irregular intervals generally not exceed ing 4 years. Interpolation was based on changes in deflated annual investment data between 25f adjacent pairs of capacity observations. The method has been described in detail elsewhere.2 Another instance that required special han dling was the plastics materials industry. In that industry a comprehensive survey of capacity has recently been inaugurated by the Society of the Plastics Industry. Each survey provides capacity data for the end of the most recent calendar year plus a forecast for the end of the current year. 1972 was the first year for which data were reported. Although there are no comparable historical data, the importance of this industry and the assurance of a future source of reliable capacity data strongly indicated that the industry should be included in this revision of the major materials series. A variation of the trendthrough-output-peaks method was used to esti mate historical capacity, and this estimated series was benchmarked to the 1972 survey observation. Finally, the capacity series for plywood was compiled on the basis of quarterly data from 1956 to the present. □ 2Nathan Edmonson, “ Production Relations at High Levels of Capacity Utilization in the Steel Industry,” Papers and Proceedings of the Am erican Statistical Association, 1973. Changes in Time and Savings Deposits at Com m ercial Banks J u ly -O c to b e r Time and savings deposits held by individuals, partnerships, and corporations (IPC) increased less than 2 per cent at insured commercial banks between July 31 and October 31, 1973, accord ing to the latest quarterly survey of time and savings deposits.1 The slackened pace of such deposit growth continued a slowing trend that had begun early in the year, reflecting in large part the relative attractiveness of high and rising interest rates available on alternative market investments. Although by October most banks had adjusted their deposit rates upward to the new regulatory ceilings instituted in July, the new maximum rates on most types of consumer deposits remained well below rates available on competing market instruments, such as Treasury securities. An exception to this was the 4-year certificate in minimum denomination of $1,000, which was free of any regulatory ceiling be tween July 1 and November 1. Commercial banks were successful in promoting the new 4-year certificates, and such deposits accounted for all of the expansion in time deposits, IPC, in denominations of less than $100,000 at banks in the July-October period. Large-denomination ($100,000 or more) time deposits expanded by only 6 per cent during the 3 months ending with the October survey date, in sharp contrast to their very rapid growth in the two preceding survey periods. Note. — Martha S . S can lon o f the B oard ’s D iv isio n o f R esearch and S tatistics prepared this article. P r e v io u s su rveys o f tim e and sa vin gs d ep osits at all m em ber banks w ere con d u cted by the Board o f G o v er nors in late 19 6 5 , in early 1 9 6 6 , and quarterly b egin n in g in 1967. B eg in n in g in 1968 the su rveys w ere exp an d ed to p rovid e figures for all insured com m ercial banks and w ere co n d u cted join tly by the Board o f G overn ors and the Federal D ep o sit Insurance Corporation. T he results o f earlier su rv ey s h ave appeared in B ulletins for 1 9 6 6 -7 3 , the m ost recent b ein g O ctober 19 7 3 , pp. 7 2 4 -3 1 . 252 1973 CONSUMER-TYPE ACCOUNTS TIME AND SAVINGS Effective July 1, ceiling rates on savings depos its and on small-denomination time deposits at commercial banks were raised, in some in stances by V2 percentage point and in others by % percentage point, to 5 per cent on passbook savings and up to 6 V2 per cent on time deposits with maturities of 2 V2 to 4 years. As shown in Table 2, by July 31 a substantial majority of banks had moved their offering rates to the new ceiling levels, and other banks adjusted their rates upward between July and October. On October 31 more than 90 per cent of the dollar volume of small-denomination time deposits with maturities of a year or more were again paying maximum rates. However, a number of large banks (with total deposits of $100 million and over) continued to pay a AV2 per cent rate on passbook sav ings— they apparently assumed that most inter est-sensitive funds had already been shifted to higher earning assets, and they also wished to avoid the substantial increase in cost that an increase of V2 percentage point in the rate on outstanding savings deposits would incur; as a general rule passbook accounts constitute a large proportion of total time and savings deposits. Most of the large banks that maintained the lower (4V2 per cent) passbook rate were located on the West Coast, but there were a few on the East Coast in Philadelphia and New York. Moreover, although some large banks were paying lower rates on savings deposits, almost all large banks were paying maximum rates on longer-maturity time deposits. This too implies that their strategy was to reduce costs of the less interest-sensitive savings of customers, but at the same time to make available attractive investment instruments to the more interestsensitive customers. The average of most common rates paid by all insured banks on savings deposits in October was 4.77 per cent (Table 3), but almost all banks outside metropolitan areas were paying the maximum 5.0 per cent. Nevertheless, growth in savings deposits at all commercial banks between July 31 and October 31 was less than 1 per cent, and for the 12 months ending Oc tober 31 such deposits increased less than 3.5 per cent. This was the slowest rate of growth in these deposits since 1969-70, also a period of high interest rates and restrictive monetary policy. During the July-October period, many savers showed their preference for higher interest rates by shifting funds out of the short-maturity (2 V2 years or less) time accounts, which were subject to lower ceiling rates, into higher-yielding time accounts or into market securities. As a result there was a sizable decline in time deposits with maturities of less than 1 year and of 1 to 2 xh years. At the same time, longer-maturity time accounts— in particular the new 4-year certifi cates— expanded at a rapid rate. Immediately following the inception of the ceiling-free 4-year certificates in July, banks began offering these instruments at rates ranging from 6.5 to 9.0 per cent, with the majority offering 7.0 to 7.5 per cent. This same rate structure prevailed in October, with more than 80 per cent of the volume of outstanding 4-year certificates paying 7.0 to 7.5 per cent. Between TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, JAN. 31—OCT. 31, 1973 Number of issuing banks Amount (in millions of dollars) 1973 1973 Type of deposit Total time and savings deposits1...... Savings................................. Time deposits in doniminations of less than $100,000—total...... Accounts with original maturity of— Less than 1year................ 1 up to 2Vi years 2....... ..... 2Vi up to 4 years 2............. 4 years and over:2 In denominations of less than $1,000........ In denominations of $1,000 or more.......... All maturities: Open accounts— Passbook or statement Time deposits in denominations of $100,000 or more............... Negotiable CD’s................... Nonnegotiable CD’s and open account................. Christmas savings and other special funds1.................... Jan. 31 Apr. 30 July 31r Oct. 31 Jan. 31 Apr. 30 July 31' Oct. 31 Apr. 30July 31 July 31Oct. 31 13,589 13,813 13,811 13,560 275,611 291,216 304,050 308,909 13,252 13,508 13,513 13,299 121,453 122,936 123,627 123,876 4.4 O) .6 .2 13,396 13,571 13,573 13,428 100,280 103,944 104,606 105,773 .6 1.1 12,798 13,044 13,072 12,860 46,693 46,633 43,281 39,189 n.a. 13,066 13,158 n.a. n.a. 48,174 45,700 n.a. 8,068 10,280 n.a. 9,267 10,919 n.a. n.a. n.a. -7.2 -9.5 7.0 8.6 n.a. n.a. 402 9,563 n.a. n.a. 340 5,225 381 7,635 3,518 3,626 3,857 3,457 28,637 29,065 30,376 28,501 4.5 - 6.2 6,131 3,098 3,690 6,275 3,226 3,738 6,627 3,233 3,874 6,944 48,206 58,212 69,221 73,161 3,596 35,065 42,511 50,856 52,166 3,934 13,141 15,701 18,365 20,995 18.9 19.6 17.0 2.6 14.3 8,257 8,606 8,854 7,807 7.8 O) 5,672 n.a. n.a. 689 3,181 n.a. n.a. r Revised. n.a. Not available. 1 Prior to Oct. 31, 1973, special funds and total time and savings deposits included deposits accumulated for the payment of personal loans (hypothecated deposits). In the Oct. 31 and future surveys these funds are excluded. Hence, the amounts of special funds and total time and savings deposits reported Oct. 31 and after are not strictly comparable with those in previous surveys. (In October 1973 hypothecated deposits at insured commercial banks amounted to slightly more than $500 million.) 2Maturity categories were changed fromthose of previous surveys to conform with the change in Regulation Q that went into effect July I, 1973. 3Includes time deposits, open account, issued in passbook, state Percentage change in deposits (quarterly rate) 6,124 6,604 6,099 5.7 ment, or other forms that are direct alternatives for regular savings accounts. The figures shown on this line are included above in the appropriate maturity category. Note.—Data were compiled jointly by the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation. For Jan. 31, Apr. 30, and July 31, 1973, the information was reported by a probability sample of all insured commercial banks; for Oct. 31, 1973, the data for member banks were reported by virtually all such banks and for insured nonmember banks by the same sample of these banks reporting in earlier surveys. Some deposit categories include a small amount of deposits out standing in a relatively few banks that no longer issue these types of deposits and are not included in the number of issuing banks. Dollar amounts may not add to totals because of rounding. 253 254 FEDERAL RESERVE BULLETIN □ APRIL 1974 TABLE 2 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JULY 31 AND OCT. 31,1973, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in millions of dollars) All banks Group Less than 100 Size of bank (total deposits in millions of dollars) All banks 100 and over Less than 100 100 and over Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, Oct. 31, July 31, 1973 1973r 1973 1973«■ 1973 1973' 1973 1973' 1973 1973r 1973 1973^ Number of banks, or percentage distribution Savings deposits: Issuing banks.............................. Percentage distribution by most com mon rate paid on new deposits: Total..................................... 3.50 or less........................... 3.51-4.00.............................. 4.01-4.50.............................. 4.51-5.00.............................. Time deposits in denominations of less than $100,000: Maturities less than 1year: Issuing banks........................... Percentage distribution by most common rate paid on new de posits: Total.................................. 4.00 or less........................... 4.01-4.50.............................. 4.51-5.00.............................. 5.01-5.50.............................. Maturities of 1up to 2Vi years: Issuing banks........................... Percentage distribution by most common rate paid on new de posits: Total................................... 4.50 or less........................... 4.51-5.00.............................. 5.01-5.50.............................. 5.51-6.00.............................. Maturities of 2V£ years to 4 years: Issuing banks........................... Percentage distribution by most common rate paid on new de posits: Total.................................. 5.00 or less........................... 5.01-5.50.............................. 5.51-6.00.............................. 6.01-6.50.............................. Maturities of 4 years and over (mini mum denomination of $1,000): Issuing banks........................... Percentage distribution by most common rate paid on new de posits : Total.................................. 6.50 or less........................... 6.51-7.00.............................. 7.01-7.25.............................. 7.26-7.50.............................. 7.51-8.00.............................. 8.01-8.50.............................. 8.51-9.00.............................. 9.01-10.00............................ 1 Less than .05 per cent, n.a. Not available. r Revised. For N o t e , see p. 257. 13,299 13,513 12,577 12,793 723 Amount of deposits (in millions of dollars), or percentage distribution 721 123,876 123,627 50,239 48,729 73,637 74,897 100 100 100 100 100 100 3.1 8.5 12.4 76.1 3.6 11.1 21.4 63.9 3.1 8.4 12.1 76.5 3.7 11.0 21.3 64.0 1.5 10.3 17.6 70.6 1.7 11.8 24.0 62.4 12,860 13,072 12,137 12,350 723 722 39,189 43,281 18,849 21,073 20,340 22,208 100 .1 .1 100 .1 100 .1 100 100 .1 100 .3 .5 32.2 66.9 15.6 84.1 13,158 13,067 12,442 12,353 716 .4 18.2 81.2 100 .1 .9 6.7 92.3 .3 .5 31.9 67.3 100 .1 1.9 17.7 80.3 .4 18.4 81.0 100 100 100 .3 .1 4.1 95.4 .3 .5 12.9 86.3 .4 .1 4.0 95.6 100 .1 .5 12.8 667 100 .2 .2 86.5 6.5 93.2 7,636 5,225 7,018 4,664 618 100 100 100 100 100 5.7 52.4 16.6 4.4 58.9 5.4 53.1 16.4 20.4 4.0 .3 3.7 59.8 9.8 9.9 44.2 19.8 18.1 5.0 1.3 .5 20.2 4.1 .4 .3 4.9 .4 .2 .1 8.3 24.6 65.8 100 .1 .4 14.8 84.7 100 100 100 1.4 9.8 33.0 55.9 1.5 6.6 13.9 78.0 1.7 7.7 23.8 66.9 100 100 100 .1 .1 .1 O) .8 O) 27.4 13.1 27.8 72.4 86.0 72.1 100 1.1 9.5 31.9 57.6 100 .1 .1 16.4 83.4 100 1.2 11.0 39.0 48.7 100 .1 .2 27.1 72.6 714 45,697 48,174 29,954 31,506 15,743 16,669 100 100 100 100 100 100 100 100 100 100 . 1 (1l .9 2.0 O) .4 (!) .7 O) .5 O) .8 O) .4 O)1.1 O) .6 O) .2 6.8 18.0 4.6 12.5 4.7 11.2 5.3 13.1 3.6 7.6 92.1 80.0 94.9 86.7 94.8 88.0 94.2 85.8 95.8 92.2 10,280 8,068 9,612 7,440 10.2 21.1 .3 26.7 72.9 100 1.2 .2 .1 21.2 5.0 .3 .1 1.1 629 10,912 9,267 5,523 4,767 5,389 4,500 100 100 1.4 (0 .6 .1 13.5 9.3 84.4 90.6 100 100 100 100 .2 0) O) .4 O) .6 0) .2 29.6 5.8 34.4 12.8 69.7 94.1 65.1 87.0 100 .4 .3 24.6 74.7 561 8,872 3,181 3,621 1,241 5,251 1,939 100 10.0 51.7 13.2 20.2 3.8 1.1 100 100 6.3 41.1 17.5 23.7 6.3 7.2 40.6 10.8 31.4 6.7 3.1 1.0 1.6 2.5 .1 100 100 100 4.6 42.4 18.2 25.6 7.8 .7 6.4 42.0 8.1 30.7 11.9 .3 .7 7.5 40.2 17.1 22.5 5.3 .6 .2 100 7.7 39.5 12.5 31.9 3.4 4.9 1.1 2.2 0) 4.2 CHANGES IN TIME AND SAVINGS DEPOSITS 255 July 1 and October 31 outstanding 4-year cer tificates increased from an estimated level of about $500 million to over $9.5 billion. This large increase more than offset the decline of about $5 billion in other small-denomination time deposits. Thus, the 4-year certificates at tracted new deposits into banks as well as funds out of lower-yielding time accounts. To implement new legislation enacted by the Congress in October, the regulatory authorities established a ceiling rate of 7.25 per cent on 4-year deposits at commercial banks, effective November 1. As of October 31, approximately one-quarter of the banks offering these certifi cates were still paying rates above 7.25 per cent, and the average of most common rates paid was 7.27 per cent. Although banks with total depos its of more than $500 million were paying somewhat higher rates on the 4-year certificates than smaller institutions, inflows of such funds were broadly distributed among banks in all size groups and among Federal Reserve districts. TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON OCT. 31, 1973 Time deposits in denominations of less than $100,000 Bank location and size of bank (total deposits in millions of dollars) All banks: All size groups.............. Less than 10.............. 10-50....................... 50-100..................... 100-500.................... 500 and over.............. Banks in— Selected large SMSA’s1: All size groups.............. Less than 10.............. 10-50....................... 50-100..................... 100-500.................... 500 and over.............. All other SMSAs: All size groups........... Less than 10........... 10-50.................... 50-100.................. 100-500................. 500 and over........... Banks outside SMSA’s: All size groups.............. Less than 10.............. 10-50....................... 50-100..................... 100-500.................... 500 and over.............. Savings and small denom ination time deposits Maturing in— Savings 5.30 5.52 5.41 5.33 5.24 5.17 4.77 4.74 4.85 4.84 4.76 4.71 5.22 5.35 5.32 5.29 5.21 5.18 up to 4 years 4 years or more (in de nomina tions of less than $1,000) 4 years or more (in de nomina tions of $1,000 or more) 5.95 5.95 5.94 5.95 5.96 5.96 6.44 6.45 6.47 6.46 6.41 6.41 6.35 6.03 5.78 6.12 5.79 6.44 7.27 7.14 7.23 7.27 7.20 7.35 5.41 5.41 5.42 5.45 5.40 5.41 5.95 5.94 5.95 5.95 5.94 5.95 6.41 6.46 6.46 6.47 6.36 6.40 6.37 6.43 5.20 6.06 5.70 6.44 7.30 7.52 7.22 7.31 7.14 7.37 5.91 5.91 5.94 5.89 5.92 5.88 5.43 5.28 5.44 5.45 5.45 5.38 5.96 5.94 5.94 5.95 5.98 5.97 6.48 6.48 6.48 6.44 6.48 6.49 6.34 6.50 6.46 6.42 5.84 6.50 7.22 7.10 7.27 7.20 7.24 7.10 5.89 5.89 5.89 5.88 5.95 5.42 5.42 5.42 5.41 5.42 5.50 5.95 5.95 5.94 5.95 5.95 6.46 6.44 6.46 6.48 6.40 6.50 5.70 5.90 5.62 5.60 6.03 6.50 7.24 7.07 7.23 7.27 7.35 7.87 Total Less than 1 year 1 up to 2l/ i years 2Vi years 5.92 5.90 5.91 5.91 5.91 5.94 5.42 5.40 5.42 5.44 5.42 5.41 4.77 4.82 4.88 4.85 4.78 4.73 5.93 5.94 5.94 5.95 5.89 5.94 5.25 5.26 5.31 5.31 5.25 5.09 4.70 4.42 4.75 4.80 4.73 4.49 5.49 5.58 5.49 5.42 5.32 5.54 4.86 4.81 4.88 4.86 4.78 5.00 6.02 6.00 1 The selected large Standard Metropolitan Statistical Areas, as defined bythe Officeof Management and Budget and arranged bysize of popula tion in the 1970 Census, are as follows: New York City San Jose Albany-Schenectady-Troy Richmond Minneapolis-St. Paul Los Angeles-Long Beach New Orleans Jacksonville Akron Seattle-Everett Chicago Hartford Milwaukee Tampa-St. Petersburg Flint Norfolk-Portsmouth Philadelphia Atlanta Portland Tulsa Orlando Phoenix Detroit Syracuse Cincinnati San Francisco-Oakland Gary-Hammond-E. Chicago Charlotte Paterson-Clifton-Passaic Columbus Washington, D. C. Rochester Wichita Dallas Oklahoma City West Palm Beach Boston Buffalo San Antonio Honolulu Pittsburgh San Diego Dayton Ft. Lauderdale-Hollywood Des Moines Ft. Wayne Miami Louisville St. Louis Jersey City Baton Rouge Kansas City Sacramento Salt Lake City Baltimore Rockford Cleveland Omaha Denver Memphis Jackson, Miss. Nashville-Davidson Houston San Bernadino-Riverside Ft. Worth Youngstown-Warren Newark Indianapolis Birmingham Note.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. 256 FEDERAL RESERVE BULLETIN □ APRIL 1974 LARGE-DENOMINATION TIME DEPOSITS were only $1.3 billion above their level on July 31. Large-denomination IPC time deposits other than negotiable C D ’s— nonnegotiable C D ’s and open account deposits— increased faster than C D ’s in the 3 months ending in October, but at a slower rate than in earlier quarters. In July more than a third of such deposits at commercial banks were yielding rates of 9.0 per cent or more, whereas by October less than a quarter were yielding rates as high as 9.0 per cent. Almost 90 per cent of the total amount of large IPC time deposits are held by commercial banks with total deposits of $100 million or more. In general, these large banks pay consid erably higher rates on such deposits than do smaller institutions. During the first 8 months of 1973 commercial banks bid aggressively for funds with which to meet accelerating credit demands through sales of large negotiable certificates of deposit (CD’s). Between January 31 and July 31 the outstanding volume of large CD ’s, IPC, ex panded by almost $16 billion, as the average rate paid on such deposits (measured by the average of most common rates paid) increased from 5.2 per cent to 9.2 per cent. Sales of C D ’s continued strong through mid-August, but by late September banks had become considerably less aggressive in seeking such funds. A combination of factors—including a drop off in business credit demands at banks, which reduced their need for loanable funds— contrib uted to the slowing in sales of C D ’s in the fall. In addition, the effective cost of such funds to banks was increased in September when the Board of Governors imposed an additional 3 per cent marginal reserve requirement on these and similar instruments above a specified base level. This raised the reserve requirement on such C D ’s to 11 per cent from its previous level of 8 per cent. Several months earlier— in May— a marginal reserve requirement of 3 per cent had been imposed on C D ’s and similar instruments (raising the total requirement from 5 to 8 per cent); this was at the time when interest ceiling restrictions on such deposits were removed. The further increase in reserve requirements in Sep tember— bringing total required reserves to 11 per cent— meant that a CD that yielded a rate of 10 per cent would actually cost the issuing bank subject to these requirements more than 11 per cent, since a larger proportion of the funds had to be held as reserves. As a result of these factors, together with the decline in interest rates generally, offering rates on C D ’s fell late in the third quarter from their peak August levels, and the average of most common rates reported in the October 31 survey was somewhat below that of the July survey. As the rates on C D ’s fell, sales dropped in late September and early October, and many banks allowed outstanding C D ’s to run off. Conse quently, outstanding C D ’s of IPC’s in October DEPOSITS HELD BY BUSINESSES In October surveys, member banks are asked to report the percentage of their IPC time de posits held by businesses. In the October 1973 survey, member banks holding more than 60 per cent of total IPC time and savings deposits reported this information, which is summarized in Table 4. As would be expected, businesses account for less than 10 per cent of small-de nomination time deposits, but they hold the bulk (over 75 per cent) of large negotiable C D ’s, IPC. However, they account for only 50 per cent of all other large IPC time deposits in the form of nonnegotiable C D ’s and open accounts at member banks. This would imply that house holds and nonprofit institutions hold an equally sizable share of such large-denomination de posits. Moreover, the nonbusiness share appears to have increased since the October 1972 sur vey, when businesses accounted for 56 per cent of large IPC deposits other than negotiable C D ’s. In total volume such deposits (held by both businesses and households) amounted to only about $20 billion in October 1973; this was less than 7 per cent of total IPC time and savings deposits at all insured banks. Between October 1972 and October 1973 the share of small-denomination time deposits held by businesses at member banks declined from 11.3 to 9.2 per cent, while their holdings of large-denomination IPC deposits dropped from CHANGES IN TIME AND SAVINGS DEPOSITS 257 76 to 71 per cent. However, businesses still held a substantial majority of large-denomination deposits, and the very rapid growth of such deposits over the 12 months ending in October relative to the slow growth in small-denomination consumer deposits resulted in an increase in the share of business deposits to total IPC time deposits during this period. □ TABLE 4 ESTIMATED PERCENTAGE OF TIME DEPOSITS, IPC, HELD BY BUSINESSES AT MEMBER BANKS ON OCTOBER 31, 1973 Time deposits in denominations of— $100,000or more Less than $100,000 Group All time deposits (excluding passbook savings) Maturing in— Total Less than 1 year All banks reportinginformation.... Size of bank (total deposits in millions of dollars): Under 10........................... 10-50................................ 50-100............................... 100-500............................. 500 and over....................... F.R. district: Boston.............................. New York.......................... Philadelphia........................ Cleveland........................... Richmond.......................... Atlanta.............................. Chicago.............................. St. Louis............................. Minneapolis........................ Kansas City........................ . Dallas................................. San Francisco..................... . 4 years 4 years or more or more 1 up to 2Vi years (in de (in de 2Vi years up to nomina nomina 4 years tions of tions of less than $1,000 or more) $1,000) Nego tiable CD’s Nonnegotiable CD’s and open accounts 43.4 9.2 11.3 7.0 8.6 9.3 9.0 76.5 50.1 12.3 13.5 19.7 33.6 54.6 8.1 7.2 8.4 11.4 9.4 11.0 9.1 10.4 14.1 11.1 6.7 6.1 6.9 9.0 6.8 10.2 5.9 6.3 8.0 10.6 11.0 4.6 5.6 1.7 9.5 9.8 5.8 7.5 8.4 10.0 62.5 53.8 49.5 65.7 78.9 70.2 53.1 54.8 58.9 44.6 60.6 63.2 31.6 37.3 33.2 38.3 38.3 32.3 24.6 31.0 38.4 42.1 13.9 14.5 8.0 9.1 10.4 10.0 6.5 10.9 6.5 9.0 12.7 8.1 15.2 15.6 7.1 12.0 12.5 12.3 7.1 16.2 8.0 14.6 16.0 10.6 10.8 15.6 6.3 6.8 9.1 8.7 4.7 7.9 5.3 6.0 9.9 6.0 9.9 9.6 4.6 5.6 9.5 7.5 11.1 8.2 8.7 5.6 13.1 7.8 2.0 9.9 6.8 12.0 4.0 2.6 10.0 7.0 1.0 5.0 4.9 5.8 10.6 17.5 8.3 4.9 5.4 8.2 5.0 7.7 5.5 12.8 7.4 71.6 77.6 76.5 73.6 59.5 75.9 83.2 81.4 76.9 68.2 60.3 82.3 71.5 54.8 44.7 62.4 68.3 59.9 30.5 75.1 52.1 62.6 32.1 42.5 Note.—Data are for member banks of the Federal Reserve System only. No insured nonmember banks reported this information, and there was some nonreporting among member banks. Never theless. the member banks that did report accounted for more than 60 per cent of the total deposits of these types in all member banks. Passbook savings and Christmas savings and other special funds are excluded. NOTE TO TABLE 2: Note.—The most common 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 the 30-day period. If the rate changed during that period, the rate reported was the rate prevailing on the largest dollar volume of inflows from the time of the last rate change to the survey date. While rate ranges of lA or Vi of a percentage point are shown in this and other tables, the most common rate reported by most banks was the top rate in the range; for example, 4.00, 4.50, etc. Some deposit categories exclude a small amount of deposits outstanding in a relatively fewbanks that no longer issue these types of deposits and are not included in the number of issuing banks. Figures may not add to totals because of rounding. 258 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Group Total Most common rate paid (per cent) Total 3.50 or less 4,00 4.50 5.00 NUMBER OF BANKS 3.50 or less 4.00 4.50 5.00 MILLIONS OF DOLLARS July 31, 1973 All banks..................................................... Size of bank (total deposits in millions of dollars): Less than 10.............................................. 10-50...................................................... 50-100..................................................... 100-500................................................... 500 and over.............................................. 13,513 491 1,493 2,895 8,635 123,627 5,835 6,181 777 544 177 360 105 14 8 4 952 395 61 63 1,154 1,413 155 119 54 3,369 4,267 547 354 97 22 6,235 30,093 12,402 25,419 49,479 1,700 12,058 40,770 69,099 283 344 181 236 656 852 1,358 3,742 1,930 7,279 20,540 965 2,942 8,313 3,936 6,144 15,103 4,374 23,047 21,402 October 31, 1973 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 10-50...................................................... 50-100..................................................... 100-500................................................... 500 and over.............................................. 13,299 401 1,126 5,518 6,169 890 556 167 276 102 13 8 3 672 322 58 57 17 1,648 10,126 123,877 547 834 140 85 42 4,023 4,912 680 406 105 5,808 30,140 14,292 25,975 47,662 1,509 10,336 30,461 81,571 591 613 1,809 4,171 911 2,211 3,499 4,587 3,526 18,879 286 329 149 227 519 4,319 23,831 11,020 17,662 24,738 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 Most common rate paid (per cent) Group Total 4.50 or less Most common rate paid (per cent) Total 5.00 5.50 4.50 NUMBER OF BANKS 5.00 5.50 MILLIONS OF DOLLARS July 31, 1973 All banks..................................................... Size of bank (total deposits in millions of dollars): Less than 10.............................................. 10-50...................................................... 50-100..................................................... 100-500................................................... 500 and over.............................................. 13,072 107 4,171 8,794 43,281 5,642 5,933 775 545 177 76 25 2,122 3,444 4.256 567 401 125 3,632 13,098 4,343 8,415 13,793 2 2 1 1,652 205 142 51 71 11,881 31,329 8 6 1,440 3,270 (2) (2) (2) 2,184 9,822 3,197 6,238 9,888 (2) (2) (2) October 31, 1973 Size of bank (total deposits in millions of dollars): Less than 10.............................................. 10-50...................................................... 50-100..................................................... 100-500................................................... 500and over.............................................. For notes to Appendix Tables 1-7, see p. 262. 12,860 71 2,345 10,444 39,189 199 5,815 33,175 5,281 5,970 886 556 167 16 51 1,061 1,027 145 83 30 4,204 4,893 739 471 137 2,838 10,916 5,095 7,921 12,419 158 (2) (2) 2 538 1,303 (2) (2) 2,278 2,298 9,456 4,464 6,817 10,141 2 2 259 CHANGES IN TIME AND SAVINGS DEPOSITS APPENDIX TABLE 3—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 1 UP TO 2V2 YEARS Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Group Total 5.00 or less Most common rate paid (per cent) Total 5.50 5.00 or less 6.00 NUMBER OF BANKS 6.00 5.50 MILLIONS OF DOLLARS July 31[, 1973 All banks...................................................... Size of bank (total deposits in millions of dollars): Less than 10................................................ 10-50........................................................ 50-100....................................................... 100-500..................................................... 500 and over............................................... 13,067 253 2,316 10,498 48,174 381 5,381 42,412 5,591 5,993 769 540 174 147 98 1,373 791 61 63 27 4,071 5,103 705 475 144 8,417 18,829 4,260 6,806 9,863 179 163 (2) (2) 2 2,172 1,822 (2) (2) 634 6,066 16,844 4,140 6,136 9,227 2 2 3 October 31, 1973 All banks...................................................... Size of bank (total deposits in millions of dollars): Less than 10................................................ 10-50........................................................ 50-100....................................................... 100-500..................................................... 500 and over............................................... 13,158 131 885 12,142 45,697 231 2,154 43,311 5,501 6,056 886 550 166 62 366 439 48 5,074 5,552 837 525 154 7,633 17,408 4,914 6,526 9,216 27 104 (2) (2) (2) 515 897 (2) (2) (2) 7,090 16,407 4,731 6,337 8,747 66 1 2 1 22 11 APPENDIX TABLE 4—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 2 ^ YEARS OR MORE EXCLUDING DEPOSITS WITH MINIMUM MATURITY OF 4 YEARS IN DENOMINATION OF $1,000 to $100,000 Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Group Total 5.00 or less Most common rate paid (per cent) Total 6.00 5.00 or less 6.50 NUMBER OF BANKS 6.00 6.50 MILLIONS OF DOLLARS July 31, 1973 AHbanks...................................................... Size of bank (total deposits in millions of dollars): Less than 10............................................... 10-50........................................................ 50-100....................................................... 100-500..................................................... 500 and over............................................... 8,068 65 1,041 6,963 9,267 59 2,747 6,461 2,553 4,251 636 469 160 24 16 10 7 7 416 490 50 60 25 2,113 3,744 575 403 128 852 3,176 739 1,512 2,988 24 1 2 16 16 389 1,116 134 546 563 439 2,059 603 950 2,410 13 1,011 9,888 (2) 180 72 262 (2) 3,190 1,142 1,570 3,119 October 31, 1973 All banks...................................................... Size of bank (total deposits in millions of dollars): Less than 10............................................... 10-50........................................................ 50-100...................................................... 100-500..................................................... 500 and over............................................... For Notes to Appendix Tables 1-7, see p. 262. 10,280 3,809 4,997 806 511 156 47 424 9,808 10,912 8 104 237 39 28 16 3,697 4,722 767 484 138 936 3,373 1,214 1,832 3,557 38 2 (2) (2) 3 866 260 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 5—TIME DEPOSITS, IPC, IN DENOMINATION OF $1,000 to $100,000—MATURING IN 4 YEARS OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Group Total JULY 31, 1973 Most common rate paid (per cent) 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.00 less Total NUMBER OF BANKS Size of bank (total deposits in millions of dollars): Less than 10. . ............ , ........ 10-50................................. 50-100................................ 100-500.............................. 500 and over........................ MILLIONS OF DOLLARS 25 3,181 149 10 943 108 205 20 42 1,474 300 681 184 20 373 48 105 30 22 216 53 88 19 8 73 21 25 2 3 15 5 109 746 386 761 1,178 26 57 20 18 8 1 Most common rate paid (per cent) Group NUMBER OF BANKS All banks................................ 7,636 4444,002 1,271 1,545 315 Size of bank (total deposits in millions of dollars): Less than 10......................... 2,359 104 1,447 240 499 65 10-50................................. 3,963 250 1,942 771 795 172 50-100................................ 695 29 340 138 139 47 100-500.............................. 471 44 209 97 87 23 500 and over........................ 147 17 65 25 25 8 For notes to Appendix Tables 1-7, see p. 262. 2 15 2 71 59 79 1,290 342 1,000 213 108 1 59 37 297 22 165 7 74 20 16 276 80 4 493 162 29 (2) (2) 4 223 97 129 49 186 57 76 433 (2) (2) Most common rate paid (per cent) 6.50 Over or 7.00 7.25 7.50 8.00 8.50 9.00 9.00 less OCTOBER 31, 1973 Over or 6.50 7.00 7.25 7.50 8.00 8.00 less 5,225 129 102 3,079 531 1,104 255 1,315 2,753 596 422 139 Total 6.00 Total Over 6.50 or 7.00 7.25 7.50 8.00 8.50 9.00 9.00 less MILLIONS OF DOLLARS 27 2 17 8 19 3 12 1 1 2 138,872 5583,645 1,556 2,106 558 414 38 234 43 80 52,104 111 827 417 560 1 1,102 19 472 198 286 2 2,025 199 716 448 442 53,226 192 1,395 449 738 85 139 226 10 (2) (2) 149 25 13 2 123 (2) (2) 155 ' (2) ’ (2) (2) 121 (2) (2) CHANGES IN TIME AND SAVINGS DEPOSITS 261 APPENDIX TABLE 6—NEGOTIABLE CD’s, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits Most common rate paid (per cent) Group Total 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 less JULY 31, 1973 Most common rate paid (per cent) Total NUMBER OF BANKS 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 less MILLIONS OF DOLLARS All banks................................ 3,233 478 329 640 110 572 411 219 47350,841 706 427 1,393 687 1,871 2,315 1,960 41,481 Size of bank (total deposits in millions of dollars): 7 15 37 Less than 10......................... 550 141 98 194 27 58 33 316 30 165 61 10-50................................. 1,876 283 200 326 91 464 224 99 1892,093 198 130 585 "'85 380 252 97 ” 367 50-100................................ 335 29 23 84 7 32 65 43 52 1,174 112 58 148 14 72 244 154 371 100-500.............................. 310 20 8 26 9 43 54 32 119 5,340 109 (2) 362 (2) 934 787 578 2,419 1 10 4 6 11 12 11341,918 257 (2) 237 (2) 478 1,016 1,09438,324 500 and over........................ 162 4 Most common rate paid (per cent) Group Total 6.50 Over or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less OCTOBER 31, 1973 NUMBER OF BANKS Most common rate paid (per cent) Total Over 6.50 or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less MILLIONS OF DOLLARS All banks................................ 3,596 607 468 665 477 312 598 303 16652,141 346 439 1,323 5,987 6,393 13,24312,24612,164 Size of bank (total deposits in millions of dollars): 8 Less than 10......................... 776 212 173 124 118 32 73 20 24 327 36 165 24 42 13 27 12 10-50................................. 1,935 368 257 442 252 140 261 140 742,303 174 171 476 374 218 390 370 130 50-100................................ 417 15 28 74 65 54 124 42 16 1,814 34 68 240 203 263 670 248 88 100-500.............................. 316 8 9 21 37 62 90 65 236,188 (2) (2) 163 779 9522,199 1,617 398 500 and over........................ 152 3 1 4 6 23 50 35 2941,508 (2) (2) 4204,589 4,947 9,958 9,999 11,539 For notes to Appendix Tables 1-7, see p. 262. 262 FEDERAL RESERVE BULLETIN □ APRIL 1974 APPENDIX TABLE 7—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 Most common rate paid (per cent) Group Total 6.00 Over 6.50 7.00 7.25 7.50 8.00 8.50 8.50 JULY 31, 1973 Most common rate paid (per cent) Total NUMBER OF BANKS All banks.............................. 3,874 1,204 306 497 Size of bank (total deposits in millions of dollars): 591 283 45 77 Less than 10....................... 10-50................................ 2,275 677 213 295 50-100............................... 475 111 28 79 100-500............................. 402 95 16 38 132 37 4 500 and over....................... MILLIONS OF DOLLARS 94 665 415 309 384 18,267 1,679 540 1,204 283 1,607 1,8781,502 9,574 78 26 43 34 179 45 12 442 276 183 134 2,250 443 180 97 43 23 75 1,413 146 82 42 60 48 89 3.999 284 126 6 11 13 52 10,425 761 140 Most common rate paid (per cent) Group Total Over 6.50 or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less OCTOBER 31, 1973 6.00 Over or 6.50 7.00 7.25 7.50 8.00 8.50 8.50 less NUMBER OF BANKS 30 5 21 147 46 320 207 24 358 298 208 328 522 580 16 40 10 472 272 371 189 66 342 691 627 1,437 510 498 7.415 Most common rate paid (per cent) Total 6.50 Over or 7.00 7.50 8.00 8.50 9.00 9.50 9.50 less MILLIONS OF DOLLARS 3,934 924 498 662 472 428 487 266 196 20,8941,692 499 1,169 2,155 3,363 7,532 2,414 2,069 All banks................ Size of bank (total deposits in millions of dollars) 486 130 86 101 50 58 37 17 7 149 29 22 28 17 28 13 8 5 Less than 10......... 2,411 620 348 441 295 225 223 123 136 2,202 296 226 377 302 334 305 205 157 10-50.................. 512 71 42 73 72 72 96 62 24 1,683 109 90 145 245 245 380 320 150 50-100................ 401 74 18 37 46 60 98 48 20 4,712 191 95 240 557 961 1,434 888 347 100-500............... 124 29 4 11 9 13 33 16 8 12,148 1,067 67 379 1,034 1,796 5,401 994 1,411 500 and over........ For notes to Appendix Tables 1-7, see p. 262. NOTES TO APPENDIX TABLES 1-7: 1 Less than $500,000. 2Omitted to avoid individual bank disclosure. Note.—Data were compiled from information reported by all member banks and by a probability sample of all insured nonmember commercial banks. The latter were expanded to provide universe estimates. Figures exclude banks that reported no interest rate paid and that held no deposits on the survey dates, and they also exclude a few banks that had discontinued issuing these instruments but still had some deposits outstanding on the survey date. Time deposits, open account, exclude Christmas savings and other special accounts. Dollar amounts may not add to totals because of rounding. In the headings of these tables under “Most common rate paid (percent)” the rates shown are those being paid by nearly all 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, 1973 Since 1964 the Federal Reserve has conducted quarterly surveys of changes in bank lending practices among large commercial banks. The surveys, taken in February, May, August, and November of each year, provide information on both price and nonprice terms of lending as well as on changes in recent and prospective demand for business loans. This article, continuing a series of regular annual reviews, summarizes the results at 125 banks surveyed in 1973. In an environment of growing credit de mands, total loans and investments at all com mercial banks expanded rapidly in the first three quarters of 1973— led by sharp growth in busi ness loans— and bank liquidity declined. Sig nificant factors in the rapid growth of business loans were the high level of real economic activity and the expanding credit needs of firms. Another reason was the rate advantage of bank loans relative to other sources of short-term credit, particularly the commercial paper mar ket. In the early part of the year, constraints on increases in the bank prime rate stemming from the interest rate program of the Committee on Interest and Dividends (CID) contributed to the lower relative rates at commercial banks. Almost 80 per cent of the banks surveyed in February reported stronger demands for busi ness loans than 3 months earlier, and they anticipated stronger demands in the months to follow. For the large majority of banks, interest rate policies were firmer, in part reflecting the rise of 25 basis points in the prime rate since the previous survey in November 1972. Non price terms of lending also became much firmer, especially in regard to compensating balances. New customers and nonlocal businesses faced significantly more restrictive bank lending poli cies. N o t e .— T his article w as prepared by Paul W . B oltz o f the B o a rd ’s D iv isio n o f R esearch and S tatistics. In the spring, credit demands continued strong, and market interest rates moved up sharply. In the interval between the February and May surveys, banks had turned to sales of large negotiable certificates of deposits (CD’s) to finance their lending as their holdings of liquid assets declined. In the May survey almost 75 per cent of the banks reported stronger current demand for business loans than in February, and nearly as large a proportion anticipated that business loan demand would become stronger in the next quarter. There was a significant tightening of nonprice terms of lending, particularly in com pensating balances and in weighing the value of borrowers as depositors. As the liquidity position of banks was diminished by the pres sure of heavy loan demand, bankers reported being less willing to make mortgage loans and term loans to business. In the summer, short-term market interest rates rose to postwar record levels. In mid-April the CID had introduced a two-tier prime rate on business loans that freed rates on loans to large businesses to move with market rates and at the same time limited increases in rates charged small businesses. Subsequently, the large-business prime rate moved up rapidly, though remaining appreciably below the com mercial paper rate. Banks became aggressive borrowers in the CD market, engaged in sub stantial liquidation of Treasury securities, and sold a large volume of loans to finance new lending. At the time of the August survey, 75 per cent of the participants still reported that loan de mand from commercial and industrial borrowers was stronger than at the time of the previous survey. In addition almost half of the respon dents thought that business loan demand would further intensify in the next 3 months. The survey indicated that interest rate policies were 263 FEDERAL RESERVE BULLETIN □ APRIL 1974 264 firmer and that nonprice terms of lending were more restrictive. Banks continued to tighten their requirements for compensating balances of loan applicants, while adopting more stringent policies toward new and nonlocal business cus tomers. As in the previous survey, the respon dents were more reluctant to make mortgage loans of any type, to make term loans to busi ness, and to make loans to brokers. After reaching their peaks in late summer, short-term market rates began to decline rapidly. The prime rate peaked in September at a historic high of 10 per cent and began a slow decline. As a result of the accompanying narrowing of the rate spread that had encouraged borrowing at commercial banks rather than in the commer cial paper market, growth of business loans abruptly dropped below its pace earlier in the year. And in October when the short-term com mercial paper rate declined below the prime rate, growth of business loans at all commercial banks, seasonally adjusted, came to a halt. Thus, when the November survey was taken, slightly less than 15 per cent of the bankers expected stronger loan demands in the coming period. QUARTERLY SURVEY— FEBRUARY 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Item Strength of demand for commercial and in dustrial loans:1 Compared with 3 months earlier........... 125 (100.0) Anticipated in next 3 months............... 125 (100.0) Total Loans to nonfinancial businesses: Terms and conditions: Interest rates charged..................... Compensating or supporting balances. Standards of creditworthiness.......... Maturity of term loans................... Practice concerning review of credit lines or loan applications: Established customers..................... New customers.............................. Local service area customers............. Nonlocal service area customers......... Factors relating to applicant:2 Value as depositor or source of collat eral business.................... Intended use of the loan........ Loans to independent finance companies: Terms and conditions: Interest rates charged................ Compensating or supporting balances., Enforcement of balance requirements .. Establishing new or larger credit lines., Moderately stronger Essentially unchanged 16 (12.8) 13 (10.4) 82 (65.6) 95 (76.0) 26 (20.8) 17 (13.6) (.8) Much firmer policy Moderately firmer policy Essentially unchanged Moderately easier policy (100.0) (100.0) (100.0) (100.0) 13 (10.4) 7 (5.6) 6 (4.8) 1 (.8) 86 50 25 23 (68.8) (40.0) (20.0) (18.4) 26 67 94 96 (20.8) (53.6) (75.2) (76.8) (.8) (4.0) 125 125 125 125 (100.0) (100.0) (100.0) (100.0) (.8) (7.2) (.8) (7.2) 19 44 17 41 (15.2) (35.2) (13.6) (32.8) 104 70 104 73 (83.2) (56.0) (83.2) (58.4) (.8) (1.6) (2.4) (1.6) 124 (100.0) 123 (100.0) (7.3) (1.6) 50 (40.3) 19 (15.4) 101 (82.2) 125 125 125 125 (2.4) (1.6) (4.0) (7.2) 42 25 27 36 80 98 93 78 (100.0) (100.0) (100.0) (100.0) 125 124 123 122 123 124 123 (33.6) (20.0) (21.6) (28.8) Considerably less willing Moderately less willing (1.6) 0.6) (1.6) 28 (22.4) 3 (2.4) 9 (7.3) 12 (9.8) 12 (9.8) 13 (10.5) 14 (11.4) (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 important in making decisions for approving credit requests, and easier means they were considered to be less important. Moderately weaker 125 125 125 125 Total Willingness to make other types of loans: Term loans to businesses................... Consumer instalment loans................ Single-family mortgage loans.............. Multifamily mortgage loans................ All other mortgage loans................... Participation loans with correspondent banks........................................ Loans to brokers............................. Much stronger (2.4) 65 (52.4) (64.0) (78.4) (74.4) (62.4) Essentially unchanged 90 108 99 103 97 106 99 (72.0) (87.1) (80.5) (84.5) (78.8) (85.5) (80.5) Much weaker Much easier policy (.8) (1.6) Moderately more willing 7 (5.6) 11 (8.9) 13 (10.6) 5 (4.1) 12 (9.8) (4.0) (4.9) Considerably more willing (1.6) (.8) 3“Independent,” or “noncaptive,” finance companies are finance companies other than those organized by a parent company mainly for the purpose of financing dealer inventory and carrying instalment loans generated through the sale of the parent company’s products. 265 CHANGES IN BANK LENDING PRACTICES, 1973 In November— for the first time in 1973— a significant minority of respondents reported an easing in their policies with regard to interest rates and several other lending terms and prac tices. Moreover, there was a marked increase in willingness to make certain types of loans, particularly term loans to business and consumer instalment loans. However, in most areas cov ered by the survey, more banks reported moves toward increased firmness than toward ease— perhaps reflecting a lagged response to the ear lier booming loan demand. The modest indica tion of a greater willingness to make term loans to business was nearly offset by tightening on the part of other respondents; although some banks reported that they were more willing to make mortgage loans than 3 months earlier, more respondents indicated the opposite. □ QUARTERLY SURVEY— MAY 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1973, 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 months earlier.......... 125 (100.0) Anticipated in next 3 months.............. 125 (100.0) Total Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... Compensating or supporting balances. Standards of creditworthiness.......... Maturity of term loans.................. Practice concerning review of credit lines or loan applications: Established customers.................... Newcustomers............................ Local service area customers........... Nonlocal service area customers....... Factors relating to applicant:2 Value as depositor or source of collat eral business............................. Intended use of the loan................. Loans to independent finance companies:3 Terms and conditions: Interest rates charged..................... Compensating or supporting balances., Enforcement of balance requirements .. Establishing new or larger credit lines. , Moderately stronger Essentially unchanged 23 (18.4) 13 (10.4) 69 (55.2) 69 (55.2) 30 (24.0) 41 (32.8) (2.4) (1.6) Much firmer policy Moderately firmer policy Essentially unchanged Moderately easier policy (100.0) (100.0) (100.0) (100.0) 24 (19.2) 17 (13.6) 13 (10.4) 7 (5.6) 76 51 42 39 (60.8) (40.8) (33.6) (31.2) 25 57 69 78 (20.0) (45.6) (55.2) (62.4) (.8) (.8) 125 125 125 125 (100.0) (100.0) (100.0) (100.0) 4 (3.2) 28 (22.4) 4 (3.2) 25 (20.0) 37 48 32 42 (29.6) (38.4) (25.6) (33.6) 83 48 89 57 (66.4) (38.4) (71.2) (45.6) (.8) (.8) (.8) 125 (100.0) 125 (100.0) 18 (14.4) 13 (10.4) 58 (46.4) 36 (28.8) 49 (39.2) 76 (60.8) 125 125 125 125 15 (12.0) 8 (6.4) 9 (7.2) 21 (16.8) 51 21 30 49 59 95 86 55 (100.0) (100.0) (100.0) (100.0) 125 124 123 122 124 123 124 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) Considerably less willing 13 (10.4) 1 (.8) 3 (2.4) 6 (4.9) 7 (5.6) 5 (4.1) 11 (8.9) 1After allowance for bank’s usual seasonal variation. 2 For these factors, firmer means the factors were considered to be more important in making decisions for approving credit requests, and easier means they were considered to be less important. Moderately weaker 125 125 125 125 Total Willingness to make other types of loans: Term loans to businesses................ Consumer instalment loans............. Single-family mortgage loans........... Multifamily mortgage loans....... ..... All other mortgage loans................ Participation loans with correspondent banks..................................... Loans to brokers.......................... Much stronger (40.8) (16.8) (24.0) (39.2) (47.2) (76.0) (68.8) (44.0) (.8) Moderately less willing Essentially unchanged Moderately more willing 41 16 24 26 17 34 68 111 100 92 (32.8) (13.0) (19.7) (21.0) (13.8) (27.4) (54.4) (89.5) (81.3) (75.4) (71.0) 100 (81.3) 77 (62.1) 3 11 4 (2.4) (8.9) (3.3) (2.4) (.8) (1.6)’ Much weaker Much easier policy Considerably more willing (.8) 3“Independent,” or “noncaptive,” finance companies are finance companies other than those organized by a parent company mainly for the purpose of financing dealer inventory and carrying instalment loans generated through the sale of the parent company’s products. FEDERAL RESERVE BULLETIN □ APRIL 1974 266 QUARTERLY SURVEY— AUGUST 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much stronger Moderately stronger Essentially unchanged Moderately weaker Strength of demand for commercial and in dustrial loans:1 Compared with 3 months earlier.......... Anticipated in next 3 months.............. 125 (100.0) 125 (100.0) 24 (19.2) 12 (9.6) 71 (56.8) 48 (38.4) 27 (21.6) 54 (43.2) 3 11 Total Much firmer policy Moderately firmer policy Essentially unchanged Moderately easier policy (.8) Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... Compensating or supporting balances. Standards of creditworthiness.......... Maturity of term loans................... Practice concerning review of credit lines or loan applications: Established customers..................... New customers.............................. Lqcal service area customers............. Nonlocal service area customers........ Factors relating to applicant:2 Value as depositor or source of collat eral business.................... Intended use of the loan........ Loans to independent finance companies Terms and conditions: Interest rates charged.............. . Compensating or supporting balances. Enforcement of balance requirements . Establishing new or larger credit lines. 125 125 125 125 (100.0) (100.0) (100.0) (100.0) 80 41 27 22 (64.0) (32.8) (21.6) (17.6) 36 46 45 37 (28.8) (36.8) (36.0) (29.6) 9 (7.2) 38 (30.4) 53 (42.4) 65 (52.0) 125 125 125 125 (100.0) (100.0) (100.0) (100.0) 13 (10.4) 72 (57.6) 12 (9.6) 58 (46.4) 60 38 58 45 (48.0) (30.4) (46.4) (36.0) 52 15 55 22 125 (100.0) 125 (100.0) 49 (39.2) 43 (34.4) 46 (36.8) 44 (35.2) 30 (24.0) 38 (30.4) 41 15 20 65 33 27 45 31 51 83 60 28 125 125 125 125 (100.0) (100.0) (100.0) (100.0) Total Willingness to make other types of loans: Term loans to businesses................... 125 Consumer instalment loans................ 124 Single-family mortgage loans.............. 122 Multifamily mortgage loans................ 121 All other mortgage loans.................... 121 Participation loans with correspondent banks........................................ 125 Loans to brokers............................. 124 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) Considerably less willing 30 3 25 36 33 10 33 1After allowance for bank’s usual seasonal variation. 2 For these factors, firmer means the factors were considered to be more important in making decisions for approving credit requests, and easier means they were considered to be less important. (32.8) (12.0) (16.0) (52.0) (24.0) (2.4) (20.5) (29.8) (27.3) (8.0) (26.6) (26.4) (21.6) (36.0) (24.8) Moderately less willing 53 12 39 43 52 46 36 (42.4) (9.7) (32.0) (35.5) (43.0) (36.8) (29.0) (2.4) (8.8) Much easier policy (41.6) (12.0) (44.0) (17.6) (40.8) (66.4) (48.0) (22.4) Essentially unchanged 41 102 54 4? 36 68 55 Much weaker (.8) Moderately more willing Considerably more willing (32.8) (82.3) (44.2) (34.7) (29.7) (54.4) (44.4) 3“Independent,” or “noncaptive,” finance companies are finance companies other than those organized by a parent company mainly for the purpose of financing dealer inventory and carrying instalment loans generated through the sale of the parent company’s products. 267 CHANGES IN BANK LENDING PRACTICES, 1973 QUARTERLY SURVEY— NOVEMBER 1973 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1973, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Strength of demand for commercial and in dustrial loans:1 Compared with 3 months earlier........... 125 (100.0) Anticipated in next 3 months............... 124 (100.0) Total Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.................... Compensating or supporting balances. Standards of creditworthiness.......... Maturity ofterm loans................... Practice concerning review of credit lines or loan applications: Established customers.................... New customers............................. Local service area customers........... Nonlocal service area customers....... Factors relating to applicant:2 Value as depositor or source of collat eral business............................. Intended use of the loan................. Loans to independent finance companies:3 Terms and conditions: Interest rates charged.................... Compensating or supporting balances. Enforcement of balance requirements. Establishing new or larger credit lines. Moderately stronger Essentially unchanged Moderately weaker Much weaker 1 (.8) 22 (17.6) 16 (12.9) 53 (42.4) 69 (55.7) 50 (40.0) 37 (29.8) 1 Much firmer policy Moderately firmer Essentially unchanged Moderately easier 125 124 124 124 (100.0) (100.0) (100.0) (100.0) 9 4 4 1 (7.2) (3.2) (3.2) (.8) 27 18 20 16 (21.6) (14.5) (16.1) (12.9) 60 98 98 99 (48.0) (79.1) (79.1) (79.8) 29 (23.2) 4 (3.2) 2 (1.6) 8 (6.5) 125 125 125 125 (100.0) (100.0) (100.0) (100.0) 1 9 1 10 (.8) (7.2) (.8) (8.0) 15 30 16 25 (12.0) (24.0) (12.8) (20.0) 96 65 94 78 (76.8) (52.0) (75.2) (62.4) 13 (10.4) 21 (16.8) 14 (11.2) 12 (9.6) 125 (100.0) 125 (100.0) 10 4 (8.0) (3.2) 22 (17.6) 17 (13.6) 125 125 125 125 4 2 5 10 (3.2) (1.6) (4.0) (8.0) 17 (13.6) 8 (6.4) 17 (13.6) 15 (12.0) 88 113 101 88 Considerably less willing Moderately less willing Essentially unchanged (100.0) (100.0) (100.0) (100.0) Total Willingness to make other types of loans: Term loans to businesses................... Consumer instalment loans................ Single-family mortgage loans.............. Multifamily mortgage loans................ All other mortgage loans................... Participation loans with correspondent banks........................................ Loans to brokers............................. Much stronger 125 124 122 121 123 125 125 (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) 2 (1.6) 9 (7.4) 14 (11.6) 7 (5.7) 1 (.8) 5 (4.0) 1After allowance for bank’s usual seasonal variation. 2 For these factors, firmer means the factors were considered to be more important in making decisions for approving credit requests, and easier means they were considered to be less important. 12 2 16 16 17 11 13 (9.6) (1.6) (13.1) (13.2) (13.8) (8.8) (10.4) 90 (72.0) 96 (76.8) 92 105 83 84 91 99 102 (70.4) (90.4) (80.8) (70.4) (73.6) (84.7) (68.0) (69.4) (74.0) (79.2) (81.6) 3 8 (-8) Much easier (2.4) (6.4) 16 (12.8) 2 (1.6) 2 (1.6) 12 (9.6) Moderately more willing 19 16 14 7 8 14 5 (15.2) (12.9) (11.5) (5.8) (6.5) (11.2) (4.0) Considerably more willing 1 (.8) 3“Independent,” or “noncaptive,” finance companies are finance companies other than those organized by a parent company mainly for the purpose of financing dealer inventory and carrying instalment loans generated through the sale of the parent company’s products. Statement to Congress S tatem en t by A rth u r F. B urns, Chairm an, B o a rd o f G overn ors o f the F ederal R eserve S ystem , before the S u bcom m ittee on In terna tional Finance o f the C om m itee on Banking and C u rren cy, U .S. H ouse o f R epresen ta tives, A p r il 4 , 1974. I am pleased to meet with this committee once again to discuss with you recent developments in the international economy and in foreign exchange markets. My testimony today will focus on the grave problem of inflation and its implications for the role of the United States in the international economic and financial community. Inflation is now the dominant economic force in every major nation around the world. Wholesale prices in the principal industrial countries at present are 10 to 35 per cent above their levels of a year ago, while consumer prices have risen from 8 to 25 per cent in the past 12 months. Inflation is raging also in the less developed countries, and apparently also in so cialist countries as well as in those practicing free enterprise. In February wholesale prices in the United States averaged 20 per cent higher, and con sumer prices 10 per cent higher, than their level a year earlier. Thus, along with most other nations, we are now either experiencing or are close to the threshold of a two-digit inflation. The current worldwide inflation has no close parallel in the economic history of the indus trialized world. In earlier times inflation in the United States and in other industrial countries was usually associated with wars or, less fre quently, with peacetime investment booms. Once those episodes passed the price level typi cally declined, and many years often elapsed before prices returned to their previous peaks. Over the past quarter century, a rather dif ferent pattern of price behavior has emerged. Prices of some individual commodities still de cline when demand weakens. The average level of prices, however, hardly ever declines, even 268 in periods of rising unemployment. The long term course of prices, therefore, has been inex orably upward. If my reading of history is correct, the ability to control inflation has gradually deteriorated since World War II. During the past 10 years, moreover, the pace of inflation appears to have accelerated more in the United States than it has in other major countries. Since 1970 prices have skyrocketed almost everywhere. For a time— between m id-1971 and the end of 1972— the rate of inflation in our country moderated substantially. Indeed, some 9 or 12 months ago, the average level of con sumer prices was rising less rapidly in the United States than in any other industrial country in the world. Of late, however, our Nation has been experiencing a rate of inflation that matches or even exceeds the inflation rate of many other countries. The implications of these facts have not been lost on the American people. Labor leaders and workers now tend to reason that in order to achieve a gain in real income, they must bargain for wage increases that provide full protection against advances in the price level. Businessmen have come to believe that the trend of produc tion costs will be steadily upward, and their resistance to higher wages or to higher prices for what they buy from others has therefore diminished. Lenders in their turn, expecting to be paid back in cheaper dollars, tend to hold out for higher interest rates. And when individ uals and families set aside funds for the future, they realize that some part of their accumulated savings will be eroded by rising prices. A recent survey indicates that three-fourths of the con suming public doubt that the rate of inflation will be reduced at any time in the near future. These new patterns of thought are an ominous development. When the thinking of a nation— its consumers, its workers, and its business men—comes to be dominated by inflationary expectations, productive efficiency is apt to falter, while interest rates rise and social and political frictions multiply. That is the clear lesson of history both here and abroad. No nation that I know of has been able to maintain prosperous economic conditions for very long once inflationary forces got out of hand. Last year’s experience in the United States provides ample evidence of the troubles wrought by inflation. During 1973, weekly earnings of the average worker rose about 7 per cent, but consumer prices rose even faster. With social security and other taxes also increasing, the real weekly take-home pay of the average worker was about 3 per cent lower at the end of 1973 than a year earlier. Inflation reduced also the real value of savings. Even if we take no ac count of the decline in the prices of common stocks, the dollar value of the other financial assets held by individuals rose less than con sumer prices during 1973; in other words, the real value of these accumulated savings actually declined. Many consumers have responded to the re duction in their real income and savings by postponing or cancelling plans for buying bigticket items. Sales of new autos began to slip in the spring of 1973, and so too did sales of furniture and appliances, mobile homes, and new conventional houses. Inflation cut a wide swath through consumer markets last year and thereby checked economic progress. The recent rise of unemployment reflects the weakness en gendered by inflation in some consumer markets as well as the obstacles to production originating in shortages of petroleum products. Thoughtful citizens throughout the country, as the members of this committee well know, are deeply concerned about the erosion of the real value of their earnings and savings. Ironi cally, the roots of our persisting inflationary problem lie in the rising aspirations of people everywhere for lasting prosperity, job security, and a fair distribution of the fruits of modern science and technology. Public policies nowadays are expected to maintain production at a high and rising level, to limit such declines in employment as may occasionally occur, to ease the burden of job loss or illness or retirement, to protect business firms from the hardships of economic dis placement, to sustain the incomes of farmers and wage earners, to provide special credit facilities and other assistance to small busi nesses and homebuilders, and so on. We and other nations have moved a considerable dis tance toward these objectives. In the process, however, governmental budgets have often got ten out of control, business and consumer credit has frequently expanded too rapidly, wages have become less responsive to market forces, and in not a few of our businesses, price com petition has atrophied as a mode of economic behavior. In view of these institutional changes, general price stability would be difficult to achieve in the contemporary world under the best of cir cumstances. Of late, however, several factors of an unusual character have imparted a new dimension to the course of inflation in indus trialized nations. A major cause of the stepped-up pace of inflation during 1973 was the coincidence of booming economic activity in the United States and in other countries. Production rose rapidly throughout the industrial world; prices of labor, materials, and end-products were bid up; and inflation accelerated everywhere. Demand pressures became particularly in tense for major industrial materials— that is, for aluminum, steel, cement, synthetic fibers, paper, paperboard, and the like. In some of these industries, productive capacity in the United States had grown little in recent years— a result of the low rates of profitability from 1966 to 1971 and, to some degree also, of the re strictions imposed by environmental controls. Since our industrial plant and that of other nations was incapable of accommodating the upsurge in demand, shortages developed for a wide range of materials and component parts. To make matters worse, disappointing har vests in 1972— both here and abroad— forced a sharp run-up in food prices during 1973. And the manipulation of petroleum shipments and prices by major oil-exporting countries caused a spectacular advance in the prices of gasoline and heating oil. Rapidly rising prices of food and fuel, in fact, have accounted for much of the recent worldwide inflationary problem. In the United States, an additional complicat ing factor during 1973 was the net decline in the value of our currency in foreign exchange markets. This depreciation of the dollar magni 269 270 FEDERAL RESERVE BULLETIN □ APRIL 1974 fied the impact of worldwide inflation on our price level. Higher prices of foreign currencies raised the dollar prices of imported goods, and these price increases were transmitted to do mestic substitutes as well as to finished products that were based on imported materials. More over, as the dollar became cheaper for foreign buyers, our export trade increased rapidly. While this helped our balance of payments, it reinforced the pressures of demand on domestic resources. Before commenting further on the relation ship between inflation and the international value of the dollar, let me turn to a brief review of recent developments in foreign exchange markets. As you may recall, those markets were char acterized by alternating periods of turbulence and stability during 1973. In mid-February the dollar was devalued for a second time, and the dollar depreciated further in early March as floating became more widespread among major currencies. Then, over a period of 2 months, the dollar stabilized. During that time the average dollar price of ten major currencies (those of Japan, Canada, and eight European nations) was some 20 per cent above the ex change parities that had prevailed in the spring of 1970. But after mid-May the dollar again declined sharply; moreover, fluctuations of ex change rates from day to day became more pronounced. By early July market conditions had become so disorderly that the Federal Re serve decided to intervene by selling European currencies, mainly German marks. The dollar reached its weakest point on July 6, when the average dollar price of the ten currencies mentioned earlier was 33 per cent higher than in the spring of 1970. In our judg ment, as well as that of other students of the exchange market, this depreciation of the dollar was substantially larger than prevailing interna tional price levels or long-term prospects for our balance of payments justified. After our intervention in July and the release of new and favorable trade and payments figures for the United States, the dollar strengthened by about 3 per cent during the first weeks of August. There was little further net change in the dollar’s value until late October, when the dollar began to strengthen in exchange markets. By the end of January the average dollar price of the same ten major currencies was only 11 per cent above its spring 1970 level— a drop of 22 percentage points from July 1973. The decisive factor in the appreciation of the dollar from late October through January was the remarkable turnaround in the foreign trade and over-all balance of payments of the United States. Our merchandise exports expanded at extraordinarily high rates during 1973; in the fourth quarter, measured in current dollars, they were 53 per cent above their level in the fourth quarter of 1972. The value of imports also increased substantially, but not nearly so fast as exports. As a result, the trade balance— ex pressed in annual rates— swung from a deficit of $7 billion in the fourth quarter of 1972 to a surplus of $5.5 billion in the fourth quarter of 1973. An impressive shift occurred also in the bal ance of payments as a whole. After registering deficits for 14 consecutive quarters, the basic balance— that is, the aggregate of all current international transactions and long-term capital flows— moved into substantial surplus in the third and fourth quarters of 1973. Although the improvement in our trade and payments position was the fundamental factor strengthening the foreign exchange value of the dollar during the October-January period, the dollar’s appreciation was also propelled by market expectations that the energy crisis would have a more severe effect on the balance of payments of European countries and Japan than on our balance of payments. These expectations seem to have weakened during February and March, and the exchange value of the dollar has declined appreciably since the end of Jan uary. Last week the average dollar price of the ten major foreign currencies mentioned earlier was about 20 per cent higher than in the spring of 1970— or close to the level at which it tem porarily stabilized one year ago. The most important factor in the recent weakening of the dollar appears to have been the reassessment by market participants of the probable effects of the world energy crisis on the balance of payments of individual countries. Foreign exchange traders have been impressed by the remarkable ability of German business firms to continue augmenting their exports, STATEMENT TO CONGRESS while passing on to buyers their sharply higher costs. Traders have also been influenced by the large borrowings in the Euro-currency markets that have recently been negotiated by the Gov ernments of Italy, France, and the United King dom for the purpose of financing the trade deficits caused by higher oil prices. These de velopments in turn have led to some reassess ment of the magnitude of the capital flow from the oil-exporting countries that is likely to end up in the United States. Other factors have also played a part in the recent weakening of the exchange value of the dollar. The termination in late January of our controls over the outflow of capital contributed to market pressures on the dollar in February and March, and so too did the relaxation by some foreign governments of their restraints on capital inflows. There is some evidence, espe cially in connection with the strengthening of the Canadian dollar in February, that wider interest-rate differentials in favor of foreigncurrency assets contributed to the recent dollar depreciation. During March rumors of a reval uation of the German mark caused speculative flurries on several occasions. And the sharp rise in our price level that occurred in January and February has surely not gone unnoticed, and it may well have reduced, in the eyes of some investors, the attractiveness of dollar assets rel ative to assets denominated in foreign curren cies. The large fluctuations in exchange markets since the beginning of 1973 have reflected speculative trading as well as changes in real circumstances of individual nations— such as the improvement in our country’s balance of trade and payments during the past 15 months. The magnification of exchange fluctuations through speculative trading is a troublesome feature of a floating system. On the other hand, had it not been for floating exchange rates, the financial world would probably have experi enced a major crisis last fall. As things turned out, exchange markets absorbed remarkably well the shock produced by the abrupt and massive manipulation of oil shipments and prices by the major oil-exporting countries. With many financial, commercial, and politi cal issues still unresolved among the nations of the world, our own and other governments have 271 no practical choice except to put up with floating exchange rates. But although exchange-rate flexibility is helpful under present circum stances, it is of course no panacea for the international problems facing our Nation or any other nation. Indeed, unless we in the United States proceed with stronger determination than we have yet mustered to restrain inflationary forces, the consequences may be worse than they would have been when exchange rates were held within very narrow margins by official intervention. Thus, if prices in the United States were to rise at a more rapid rate than abroad, our exports would become less competitive and domestic demand would tend to shift away from goods produced at home to imported products. For merly, with fixed exchange rates, this lower volume of exports would have eased demand pressures on domestic resources; and the diver sion of demand toward imports would also have served to moderate upward pressure on our general price level. With floating exchange rates, however, a more rapid rate of inflation in the United States than abroad would tend to lead to a depreciation of the dollar in exchange markets. Such a depreciation, as noted earlier, results not only in higher dollar prices of im ported goods, but also in higher prices of do mestic substitutes and of finished products based on imported materials. Speculative anticipations of further weakness in the exchange value of the dollar could intensify this vicious circle of domestic inflation and exchange depreciation. In short, with exchange rates floating, faster inflation in the United States than abroad would tend to induce a depreciation of the dollar in exchange markets, which in turn would exacer bate our inflation problem. No such intensifica tion can take place under a regime of fixed exchange rates; or more precisely, it cannot take place so long as international reserves remain sufficient to obviate the need for devaluation. There is another difference between the present system of flexible exchange rates and the former regime of fixed rates that requires attention. Under either regime, changes in interest-rate differentials between the United States and foreign countries will tend to induce international capital flows. When exchange rates were held fixed, such capital outflows from the 272 FEDERAL RESERVE BULLETIN □ APRIL 1974 United States produced a decline in our net reserve position. Now, with exchange rates floating, capital outflows will tend to cause some depreciation of the dollar in exchange markets, and thus bring into play the unhappy conse quences for our price level that I have already recited. An important conclusion follows from this analysis of the interdependence between do mestic inflation and the exchange value of the dollar, namely, that under the present regime of floating exchange rates, it is more necessary than ever to proceed cautiously in executing an expansionary economic policy. Since the effects of floating exchange rates vary with circumstances, being helpful in cer tain respects and injurious in others, no respon sible government is prepared to allow the inter national value of its currency to be determined solely by the untrammeled play of market forces. That is why the Federal Reserve System and the Treasury have been cooperating with monetary authorities abroad— most recently in February and March— to moderate abrupt movements in exchange rates and to prevent the emergence of disorderly conditions in exchange markets. We in the United States certainly can not accept with equanimity exchange-rate movements that clearly undervalue the dollar. Nor would our trading partners want us to do that. Cooperation in managing the present exchange-rate arrangements is essential if the na tions of the world are to minimize economic and political frictions and to promote orderly expansion of international transactions. Present uncertainties about the world eco nomic outlook, in particular the consequences of the current energy problem, have increased the need for international cooperation in other areas as well. But effective cooperation requires effective leadership. The United States, being much the strongest economic and financial power in the world, is expected by the interna tional community to provide the leadership without which lasting economic achievement may be impossible. Our Government recognizes this responsibility and exercised it effectively at the Energy Conference held in Washington this February. The nations participating in that Conference agreed, as did also the Committee of Twenty in January, that every country must scrupulously avoid policies that are harmful to other countries— especially the imposition of restrictions on trade and payments. The United States in particular needs to en sure that declarations such as these at interna tional meetings are more than fine rhetoric. Constructive steps can be taken in three areas: facilitation of adjustment problems caused by higher oil prices, reduction of trade barriers, and international monetary cooperation. The higher oil prices will generate an enor mous flow of additional revenues to the oil-exporting countries. The capacity of these coun tries to expand their imports is very limited, however, in the short run. Therefore, even when oil prices decline this year or next, which I believe will happen, the oil-exporting countries will probably still experience huge surpluses in the current account of their balance of pay ments. On the other hand, we and other coun tries will probably experience sizable deficits. In principle, the essential means for the financ ing of these deficits are at hand, since the oil-exporting countries must invest their huge surpluses in some form— in the traditional money and capital markets of other countries, or the Euro-currency market, or through inter national institutions. Unfortunately, there is no assurance that the distribution of the investments of the oil-exporting countries will match the distribution of the current-account deficits that their manipulation of oil prices has caused. Many of the oil-importing countries that fail to attract these investments will be able to draw down their foreign-exchange reserves or borrow in the Euro-currency or traditional money and capital markets. But special cooperative meas ures will be required to assist countries for which these temporary remedies are not suffi ciently available. Some countries, particularly among the developing nations, face oil-financ ing problems that are literally beyond their ca pacity to manage. Oil-exporting countries themselves should play a major role in ameliorating the impact on the rest of the world of their sharply higher oil prices— first and foremost, by bringing down these prices to a more reasonable level, and second, by providing massive assistance to the developing countries. Imaginative use can be made of existing financial institutions such as STATEM ENT TO CONGRESS the World Bank, the International Monetary Fund (IMF), the Bank for International Settle ments, and the Asian Development Bank; some progress along these lines is already visible. The Federal Reserve’s own network of reciprocal currency arrangements can play a modest role by temporarily financing short-term move ments of funds; to this end, the swap lines with the Bank of Italy and the Bank of England have recently been expanded, each by $1 billion. We should also explore new instru mentalities, such as the multinational jointventure arrangement mentioned as a possibility by Secretary Shultz at the Washington Energy Conference. These financial measures can be helpful in the short run while other measures, which will only become fully effective in the longer run, are being taken. The long-run solution of the energy problem is not yet clear beyond the fact that it will require massive programs to conserve energy use, to develop new energy sources, and to accelerate energy research. Project Inde pendence, outlined in the President’s Budget Message, is designed to advance these programs in the United States; and the Washington Energy Conference has also agreed to seek methods of international cooperation with regard to such matters as the conservation of energy, the shar ing of nuclear and other technologies in the energy area, and research aimed at developing or hastening the exploitation of new energy sources. Reduction of trade barriers is a second area in which increased international cooperation can play a useful role. The Congress can do its part by speedily enacting the Trade Reform Act. Other countries must also make an earnest effort to move trade negotiations forward. In the meantime, we should insist that the nations of the world bind themselves to avoid bilateral agreements that give support to cartel arrange ments. We should also seek agreement—in case of balance of payments difficulties—not to im pose new restrictions on imports, or artifically stimulate exports, without IMF approval. International monetary reform is the third area in which useful cooperative steps can be taken in the months ahead. I see no reason for being discouraged by the progress made to date by the Committee of Twenty. The Committee and 273 its Deputies have been laboring under difficult circumstances. I have never expected interna tional monetary reform to be blueprinted in advance so that it could be methodically imple mented all at once. International monetary re form is bound to be an evolutionary process and to reflect unfolding experience. I expect the Committee of Twenty to reach agreement this summer on the basic principles and broad features of a reformed international monetary system. This agreement should lay the basis for considerable strengthening of the IMF. Hopefully, a new high-level Council will be created in the IMF; this body will be charged with the responsibility for continuously review ing the structure and operation of the interna tional monetary system. I also believe that agreement can be reached this summer on sev eral vital monetary arrangements, such as guidelines for floating, the valuation of special drawing rights, and guidelines for an adjustment process to avoid persistent increases or de creases of the international reserves of individ ual countries. I am bound to observe, however, that no set of international monetary arrangements can function successfully in an environment of rapid inflation such as we and other countries have recently been experiencing. The paramount task to which economic policy in all countries must be devoted at the present time is firm control over the inflationary forces distorting the world economy. It is particularly important that the United States, to which so many countries look for leadership, bring its own inflation under control. By setting an example for other coun tries, we will aid them as well as ourselves. Improvement in price performance during 1974 is essential to our future, and it is also within our means. The rise in consumer prices should moderate later this year as petroleum prices level off or decline in response to in creased supplies of gasoline and fuel oil, and as food supplies expand in response to incen tives for farmers to increase production. There are other favorable price developments on the horizon. A temporarily slower pace of economic activity, both here and abroad, should cause a decline in the prices of industrial raw materials and in internationally traded commodities. Ac tually, wholesale prices of farm and food prod 274 FEDERAL RESERVE BULLETIN □ APRIL 1974 ucts have declined appreciably in recent weeks, and prices of cotton and some other industrial materials have also edged down from previous peaks. Realistically, however, we can hardly expect a return to general price stability in the near future. Substantial increases in the prices of numerous commodities and services are practi cally unavoidable this year because relative prices of many items are now badly out of balance. Moreover, despite the restraint shown in most wage settlements during 1973, increases in wage rates are running well ahead of produc tivity gains, and unit-labor costs are rising rap idly. If economic activity proceeds rather slug gishly this year, as seems likely, productivity gains will probably be even smaller than they were last year. A rise in wages that is faster than we have recently experienced would there fore put great upward pressure on costs of production and on prices. Whatever the cause, if rapid inflation con tinues this year, it may undermine confidence, cause interest rates to move higher, and seriously diminish our chances of regaining a stable and broadly based prosperity. It may also destroy the gains recently made in improving our competitive position in world markets and in strengthening our balance of payments. Public policy at the present time is confronted with an exceptionally difficult economic situa tion. Inflation is proceeding at a dangerous pace, economic activity is high but sluggish, and international financial relations are under strain. Our best chance of surmounting these accumu lated difficulties is to face up squarely to the gravity of the inflation problem. The pace of inflation needs to be substantially reduced, even if it cannot be halted, this year. Our chances of bringing inflation under con trol will be enhanced if our Nation’s business and labor leaders exercise restraint in the wageprice area. Governmental programs to improve productivity and to encourage larger output of products in short supply could also be of benefit. But in the end, we will have to rely principally on prudent management of monetary and fiscal policies. For our part, we at the Federal Reserve are determined to follow a course of monetary policy that will permit only moderate growth of money and credit. Such a policy should make it possible for the fires of inflation to burn themselves out, while at the same time it pro vides the financial basis for the resumption of orderly economic growth. In the present economic environment fiscal policy can be used to better advantage than monetary policy in alleviating unemployment. Selective measures such as an expanded public employment program or increased unemploy ment benefits could cushion the economic ad justments now under way. Also, a selective tax policy of accelerated amortization could stimu late investment in the energy and other basic materials industries, thereby relieving the more critical shortages of capacity that have recently proved so troublesome. I would strongly advise the Congress, however, against adoption, at this time, of broadly stimulative fiscal measures, such as a general tax cut or a new public works program. In closing, I cannot let this opportunity pass without expressing great satisfaction that a bill reforming congressional budget procedures is now in conference and will soon become law. After long and conscientious study, the Congress has developed systematic procedures for setting an over-all spending limit that will be related rationally to both expected revenues and to economic conditions, and then establish ing spending priorities within that limit. These new procedures should end the practice of per sistently running budget deficits—deficits which have appeared in good times as well as in bad, and which very frequently were unplanned and unwanted by either the Congress or the admin istration. This landmark legislation will enable us to avoid excessively stimulative fiscal policy, which has been a major source of the inflation during the past decade. It will enable us at long last to use fiscal policy effectively—to restrain demand as well as to stimulate it. Used wisely, this legislation has enormous potential for re storing price stability in the future. □ Record of Policy Actions of th e M E E T IN G 1. HELD F ed eral O p en ON D o m e s tic JA N U A R Y p o lic y M a rk et C o m m itte e 2 1 -2 2 , 1 9 7 4 1 d ire c tiv e Preliminary estimates of the Commerce Department indicated that growth in real output of goods and services (real gross national product) had slowed to an annual rate of 1.3 per cent in the fourth quarter of 1973— from 3.5 per cent in the third quarter— and that the rise in the GNP implicit deflator had accelerated to an annual rate of about 8 per cent, in part as a result of the impact of the oil shortage. Staff projections suggested that economic activity would weaken further in the first half of 1974 and that prices would rise somewhat more sharply than had been expected 5 weeks earlier. In December industrial production declined, as output of automobiles fell sharply and residential and commercial use of electricity and gas was substantially reduced; the gain in industrial production from the third to the fourth quarter of 1973 was small. Nonfarm payroll employment— which had grown rapidly in the first 11 months of the year— expanded little in December, when some workers were laid off as a result of the energy situation, and the unemployment rate rose further to 4.9 per cent. Retail sales declined in December and changed little in the fourth quarter as a whole, chiefly because of a drop in demand for the larger automobiles and for some other durable goods. Wholesale prices of industrial commodities rose sharply further in December; as in the preceding 2 months, increases were large for fuels and were substantial and widespread among other indus trial commodities. Wholesale prices of farm and food products, which had declined for 3 months, turned up, reflecting sizable increases in prices of grains, animal feeds, oilseeds, fats and oils, lrT h is m e e tin g w a s h e ld o v e r a 2 - d a y p e r io d , b e g in n in g o n th e e v e n i n g o f J a n u a r y 2 1 , 1 9 7 4 , in o r d e r to e n a b l e th e C o m m itte e to h e a r r e p o r ts f r o m m e m b e r s w h o h a d a tte n d e d in te r n a tio n a l g a th e r in g s w ith o u t in f r in g in g o n th e tim e a v a i la b le f o r its d e lib e r a tio n s o n c u r r e n t m o n e ta r y p o lic y . 275 276 FEDERAL RESERVE BULLETIN □ APRIL 1974 and raw cotton. In the closing months of 1973 the consumer price index continued upward at a rapid rate as a result of the rise in prices of various types of energy and increases in prices of foods and services. The index of average hourly earnings of production workers on private nonfarm payrolls also continued to move up at a fast pace, but real spendable weekly earnings of production workers declined in the fourth quarter of the year as they had over the first three quarters. Staff projections for the first half of 1974 still suggested that the short-fall in supplies of petroleum products would lead to additional curtailment in expenditures for automobiles and related goods and services. Consequently, real consumption expenditures, which had declined in the fourth quarter of 1973, would remain weak. As before, it was anticipated that the decline in residential construction would be extended but that the expansion in business fixed investment would remain relatively strong and that growth in State and local government purchases of goods and services would continue at a substantial rate. The over-all increase in nominal GNP projected for the first half of the year was now somewhat greater than had been expected 5 weeks earlier, owing to larger increases in prices— mainly in those of petroleum prod ucts. In late December the large price increase for crude oil imposed by producing countries generated new uncertainties and fears about foreign trade prospects for oil-importing countries, about the size and direction of international flows of funds, and about the course of economic activity in major industrial countries. Participants in foreign exchange markets apparently believed that the United States would be the principal recipient of the capital flows arising from the investment of oil producers’ receipts; as a result, major foreign currencies depreciated significantly further against the dollar in late December and early January—even while some foreign monetary authorities intervened in the markets, selling large amounts of dollars to limit depreciation of their currencies. U.S. merchandise imports had risen substantially in November, in part because of earlier sharp increases in prices of petroleum products. Exports also had advanced, but U.S. merchandise trade had been in approximate balance, following 2 months of large surpluses. RECORD OF POLICY ACTIONS OF FOMC Total loans and investments at U.S. commercial banks increased relatively little in December, and growth in bank credit over the fourth quarter was moderate. Expansion in outstanding business loans— which had picked up in November— slowed again in De cember as some borrowers apparently used proceeds of new bond issues to pay down bank loans. Real estate and consumer loans grew at about the same rates as in November, remaining well below rates earlier in the year. And while banks added to their holdings of State and local government securities, they further reduced their holdings of Treasury issues. The narrowly defined money stock (Mj)2 continued to grow at a rapid pace in December, but growth was somewhat faster over the November-December period than it otherwise would have been because of temporary increases in deposits held by foreign com mercial banks; weekly data suggested that on balance M x changed little between mid-December and mid-January. In December in flows of time and savings deposits other than large-denomination certificates of deposit (CD’s) were still sizable, although somewhat less than in November, and growth in the more broadly defined money stock (M2)3 remained substantial. The outstanding volume of large-denomination CD’s expanded, contributing to a moderate pick-up in growth in the bank credit proxy4 from very slow rates in October and November. In late December and early January the outstanding volume of such CD ’s expanded further, and the credit proxy grew at a faster rate. Net deposit inflows at nonbank thrift institutions— which had improved significantly in October and November— expanded slightly further in December, reflecting primarily a larger-than-seasonal amount of interest credited to accounts at the m onth’s end; growth in the measure of the money stock that includes such deposits (M3)5— like growth in M2— remained substantial. Contract interest rates on conventional mortgages were unchanged in De 2P r iv a t e d e m a n d d e p o s it s p lu s c u r r e n c y in c ir c u la tio n . 3M x p lu s c o m m e r c ia l b a n k tim e a n d s a v in g s d e p o s it s o th e r th a n l a r g e - d e n o m i n a tio n C D ’s. 4 D a ily - a v e r a g e m e m b e r b a n k d e p o s it s , a d ju s t e d to in c lu d e f u n d s f r o m n o n d e p o s it s o u r c e s . 5 M 2 p lu s tim e a n d s a v in g s d e p o s it s a t m u tu a l s a v in g s b a n k s a n d a t s a v in g s a n d lo a n a s s o c ia t io n s . 277 278 FEDERAL RESERVE BULLETIN □ APRIL 1974 cember, after having declined over the two preceding months, but yields in the secondary market for Federally insured mortgages declined for the third consecutive month. Following the Committee meeting in mid-December, System open market operations had been directed initially toward achieving some easing in bank reserve and money market conditions— in accordance with the Committee’s decision to seek such easing, provided that the monetary aggregates did not appear to be growing excessively. As a result the Federal funds rate declined to a level of around 9 3A per cent in the early days of January— from around lOVs per cent in the two statement weeks before the December meeting— and member bank borrowings declined to an average of about $ 1,010 million in the 3 weeks ending January 9 from an average of about $ 1,390 million in the preceding 4 weeks. On January 11, after incoming data had suggested that in the December-January period the annual rate of growth in reserves available to support private nonbank deposits (RPD’s) might be close to the upper limit of the specified range and that rates of growth in M x and M2 might exceed acceptable ranges, a majority of the available members concurred in a recommendation by the Chairman that, in view of the sensitive state of financial markets and the general economic situation, the System aim to maintain prevailing money market conditions for the time being. The funds rate remained around 93A per cent until the last few days before this meeting, when it averaged about 95/s per cent; in the statement week ending January 16 member bank borrowings were about $990 million. Changes in market interest rates since mid-December had been mixed. Long-term rates in general had risen in response to a relatively heavy volume of capital market financing. The over-all volume of new public offerings of corporate and State and local government bonds— which had expanded in the October-November period— declined less than seasonally in December, and a substan tial increase was in prospect for January. In short-term markets some private rates had declined since mid-December, reflecting the slackening in business demands for short-term credit and the inflow of funds from abroad. However, Treasury bill rates had risen, apparently because money market conditions had eased less than market participants had expected RECORD OF POLICY ACTIONS OF FOMC and because foreign monetary authorities had sold a substantial volume of bills in association with their intervention in foreign exchange markets. The Treasury was expected to announce on January 30 the terms of its mid-February refunding. Of the maturing issues, $4.5 billion were held by the public. A staff analysis suggested that, because of the larger rise in prices and higher projected rate of expansion in nominal GNP, growth in the demand for money over the first half of 1974 was likely to be somewhat greater than had been expected earlier. It appeared likely that if M x were to grow at a rate consistent with the Committee’s earlier longer-run objectives for the monetary aggre gates, money market conditions would tighten somewhat in the period immediately ahead and market interest rates in general would rise. As a result, net inflows of consumer-type time and savings deposits to banks and nonbank thrift institutions might decline appreciably, reducing the rates of growth in both M% and Af3. This analysis implied that a moderately higher rate of growth in M x would be associated with little change or possibly some easing in money market conditions; under these conditions net inflows of consumer-type time and savings deposits likely would be main tained or would expand somewhat from recent rates. According to the staff analysis, expansion in M 1 was likely to be relatively slpw on the average in the January-February period— following the rapjd pace over the preceding 2 months that was attributable in part to the transitory increases in deposits held by foreign commercial banks. However, growth was expected to be faster in the second quarter, reflecting the temporary effects of large refunds of Federal income taxes and initial payments of increased social security benefits. It was also anticipated that growth in bank credit would pick up this winter from the low rate of the fourth quarter of 1973 and that the outstanding volume of large-denomi nation CD’s, which had turned up in mid-December, would expand at a moderate pace. The Committee agreed that the economic situation and outlook called for moderate growth in monetary aggregates over the longer run, including a slightly higher rate of growth in M x than contem plated earlier. Taking account of the staff analysis, the Committee concluded that growth in M x and M2 over the January-February 279 280 FEDERAL RESERVE BULLETIN □ APRIL 1974 period at annual rates within ranges of tolerance of 3 to 6 per cent and 6 to 9 per cent, respectively, would be consistent with its longer-run objectives for the monetary aggregates. The members agreed that such growth rates would be likely to involve RPD growth during the January-February period at an annual rate within a 4% to 7 % per cent range of tolerance, and they decided that in the period until the next meeting the weekly average Federal funds rate might be permitted to vary in an orderly fashion from as low as 8% per cent to as high as 10 per cent, if necessary, in the course of operations. It was understood that a slight easing in reserve and money market conditions would be sought promptly, provided that the data becoming available later in the week of the meeting did not suggest that the monetary aggregates were growing rapidly. The members also agreed that, in the conduct of operations, account should be taken of the forthcoming Treasury financing and of international and domestic financial market developments. It was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee’s various objectives and con straints. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that growth in real output of goods and services was slow in the fourth quarter of 1973, in part because of the fuel situation. Prices continued to rise sharply in December, reflecting additional increases for petro leum products and widespread advances among other goods and services. A further weakening in activity and sharp rise in prices appear to be in prospect for early 1974. In December nonfarm payroll employment changed little, and the unemployment rate increased further. Wage rates have continued to rise substantially in recent months, although not so sharply as prices. Major foreign currencies have depreciated further against the dollar since mid-December, and some foreign monetary authorities have continued to sell dollars in exchange markets. Steep price increases imposed by oil-producing countries have heightened fears of econom ic disruption in many countries and of large and erratic international flows of funds. RECORD OF POLICY ACTIONS OF FOMC The narrowly defined money stock increased substantially in the last 2 months of 1973, partly reflecting increased foreign deposits, but it has changed little on balance over recent weeks. Net inflows of consumer-type time deposits remained sizable at both banks and nonbank thrift institutions. Bank credit expansion, which was m od erate over the closing months of 1973, has accelerated in recent weeks as banks have stepped up issuance of large-denomination C D ’s. Since mid-December, interest rate movements have been mixed; yields on most long-term securities and on Treasury bills have risen on balance, while some private short-term rates have declined. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions con ducive to resisting inflationary pressures, cushioning the effects on production and employment growing out of the oil shortage, and maintaining equilibrium in the country’s balance of payments. To implement this policy, while taking account of the forthcoming Treasury financing and of international and domestic financial market developm ents, the Committee seeks to achieve bank reserve and money market conditions consistent with moderate growth in m one tary aggregates over the months ahead. Votes for this action: Messrs. Burns, Balles, Brimmer, Bucher, Daane, Holland, M ayo, Mit chell, Morris, and Sheehan. Votes against this ac tion: Messrs. Hayes and Francis. In dissenting, both Mr. Hayes and Mr. Francis indicated that they favored no change in the Committee’s longer-run objectives for growth in the monetary aggregates, and Mr. Hayes also was opposed to a range of tolerance for the Federal funds rate that was skewed to the low side of the range that had prevailed in recent days. In Mr. Hayes’ view, the probabilities favored a relatively mild business slowdown in 1974 as a whole, and in light of the rapid monetary growth in recent months, the Committee should lean against the strong inflationary pressures that remained the major economic problem. Mr. Francis believed that the actual and prospective slowdown in economic activity resulted wholly from capacity, supply, and price-distorting constraints, rather than from a weakening in demand, and that any easing in monetary policy would increase inflationary pressures without expanding real output or reducing unemployment. 281 282 FEDERAL RESERVE BULLETIN □ APRIL 1974 2. R a tific a tio n o f e a rlie r a c tio n By unanimous vote, the Cortimittee ratified the action for which a majority of the members had voted on January 4 , 1974, increasing from $2 billion to $3 billion the limit on changes between Com mittee meetings in System Account holdings of U.S. Government and Federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective for the period from January 4 through the close of business on January 22, 1974. The action in question had been taken on recommendation of the System Account Manager. The Manager had advised that a substantial volume of open market purchases of securities had been required in the period since the Committee’s meeting on December 18, 1973, in order to offset reserve absorption resulting from market factors and that a near-term need to supply reserves was in prospect; he had further advised that strength of the dollar in foreign exchange markets suggested that foreign official sales of U.S. Treasury bills might be heavy and that the System should be in a position to acquire some of those bills while offsetting any undesired effects on bank reserves by other means. 3. A u th o riz a tio n fo r fo re ig n c u rre n c y o p e ra tio n s The Committee approved an increase from $2 billion to $3 billion in the System’s swap arrangement with the Bank of Italy, and the corresponding amendment to paragraph 2 of the authorization for foreign currency operations, subject to the understanding that the action would become effective upon approval by the Subcom mittee (consisting of the Chairman and Vice Chairman of the Committee and the Vice Chairman of the Board of Governors) designated in the Committee’s rules of procedure, after consultation with the U.S. Treasury. Votes for this action: Messrs. Burns, Hayes, Balles, Brimmer, Bucher, Daane, Francis, Holland, M ayo, M itchell, Morris, and Sheehan. Votes against this action: None. On January 29, 1974, the Subcommittee approved the indicated increase, effective February 1, 1974. Accordingly, as of the latter date, paragraph 2 of the authorization read as follows: RECORD OF POLICY ACTIONS OF FOMC 283 The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements ( “ swap” arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the follow ing foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N , Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: A m ount of arran g em en t (m illions of dollars eq u iv a len t) F o reig n bank A u strian N atio n al B ank of N atio n al B ank o f N atio n al B ank o f C an ad a B ank o f E n g lan d B ank .................................................. B elg iu m ............................................. ......................... ........................................ D en m ark .......................................... ....................... ........................................ 250 1,000 2 ,0 0 0 250 2 ,0 0 0 B ank o f G erm an B ank o f B ank of B ank o f F rance .................................................................... F ederal B ank ...................................................... Italy ........................................................................ J a p a n ........................................................................ M ex ico .................................................................. 2 ,0 0 0 2 ,0 0 0 3 ,0 0 0 2 ,0 0 0 180 N etherlands B ank ................................................................ B ank of N orw ay .................................................................. B ank o f Sw eden .................................................................. Sw iss N ational B ank ........................................................ 500 250 300 1,400 B ank for International S ettlem ents: D ollars against Sw iss francs ..................................... D ollars against o th er E uropean currencies ........ 600 1,250 This action was taken on the grounds that it would prove helpful in coping with possible exchange market pressures on the lira arising from the oil crisis, and thus would contribute to international monetary stability. Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s A nnual R eport, are released about 90 days after the meeting and are subsequently published in the B u l l e t i n . Law Department S ta tu te s , r e g u la tio n s , in te r p r e ta tio n s , a n d d e c i s io n s OPEN MARKET PURCHASES OF BILLS OF EXCHANGE, TRADE ACCEPTANCES, BANKERS ACCEPTANCES The Board of Governors has revoked, effective April 1, 1974, its Regulation B relating to open market purchases of bills of exchange and bankers’ acceptances. After April 1, all provisions relating to such purchases will be included in the Regula tion Relating to Open Market Operations of Fed eral Reserve Banks of the Federal Open Market Committee, and in authorizations and directives issued by the Committee. ACCEPTANCE BY MEMBER BANKS OF DRAFTS OR BILLS OF EXCHANGE The Board of Governors has revoked, effective April 1, 1974, its Regulation C dealing with ac ceptance by member banks of drafts or bills of exchange. Interpretations of the statutory provisions that have been issued by the Board from time to time remain, for the present, in full force and effect. The Board intends to undertake a general review of its outstanding statutory interpretations with a view to determining whether any modifications should be made in light of current business and banking practices. OPEN MARKET OPERATIONS OF FEDERAL RESERVE BANKS PURCH ASE OF B A N K E R S’ ACCEPTANCES Beginning April 1, 1974, purchase and sale of bankers’ acceptances by Federal Reserve Banks will be conducted pursuant to provisions of para graphs 1(b) and 1(c) of the Comm ittee’s Authori zation for Domestic Open Market Operations, as amended effective on that date. The new rules, as set forth in the Authorization, eliminate out dated provisions in the present rules specified in Regulation B and broaden somewhat the scope of bankers’ acceptances eligible for purchase by Federal Reserve Banks. The new rules eliminate 284 the present requirement that banks have in their possession shipping documents conveying or se curing title at the time they accept drafts covering the shipment of goods within the United States. REGULATION RELATING TO OPEN MARKET OPERATIONS 1. Effective April 1, 1974, section 270.4(c)(2) is amended to read as follows: SECTION 2 70.4— TRANSACTIONS IN OBLIGATIONS (c) In accordance with such limitations, terms, and conditions as are prescribed by law and in authorizations and directives issued by the Com mittee, the Reserve Bank selected by the Commit tee is authorized and directed— (2) To buy and sell bankers’ acceptances in the open market for its own account; BANK HOLDING COMPANIES The Board of Governors has amended its Regu lation Y to permit the leasing of both real and personal property. The Board has determined that separate regulations for real and personal property leasing would allow greater flexibility for innova tion and the evolution of bank holding company leasing transactions. Accordingly, the Board is adopting separate regulations with substantially the same provisions. A M E N D M E N T TO R E G U L A T IO N Y 1. Effective April 17, 1974, section 225.4(a)(6) is amended to read as follows: SECTION 2 25.4— NONBANKING ACTIVITIES (a) A ctivities closely related to banking or m anaging or controlling banks. *** The follow ing activities have been determined by the Board LAW DEPARTMENT to be so closely related to banking or managing or controlling banks as to be a proper incident thereto: (6)(a) Leasing personal property or acting as agent, broker or adviser in leasing such property provided: (i) the lease is to serve as the functional equiv alent of an extension of credit to the lessee of the property; (ii) the property to be leased is acquired specif ically for the leasing transaction under consid eration or was acquired specifically for an earlier leasing transaction; (iii) the lease is on a nonoperating basis; (iv) at the inception of the initial lease the effect of the transaction (and, with respect to govern mental entities only, reasonably anticipated future transactions4) will yield a return that will com pen sate the lessor for not less than the lessor’s full investment in the property plus the estimated total cost of financing the property over the term of the lease,5 from: (1) rentals; (2) estimated tax benefits (investment tax credit, net econom ic gain from tax deferral from accelerated depreciation, and other tax benefits with a substantially similar effect); (3) the estimated residual value of the property at the expiration of the initial term of the lease, which in no case shall exceed 20 per cent of the acquisi tion cost of the property to the lessor; and (4) in the case of a lease of not more than 7 years in duration, such additional amount, which shall not exceed 60 per cent of the acquisition cost of the property, as may be provided by an unconditional guarantee by a lessee, independent third party or manufacturer, which has been determined by the lessor to have the financial resources to meet such obligation, that w ill assure the lessor of recovery of its investment and cost of financing; 4T he Board understands that som e Federal, State and local governm ental entities may not enter into a lease for a period in excess o f one year. Such an im pedim ent does not prohibit a com pany authorized under § 2 2 5 .4 (a ) from entering into a lease with such governm ental entities if the com pany reason ably anticipates that such governm ental entities w ill renew the lease annually until such time as the com pany is fully com pen sated for its investm ent in the leased property plus its costs of financing the property. Further a com pany authorized under § 225 .4 (a )(6 ) may also engage in so-called “ bridge” lease financing o f personal property, but not real property, where the lease is short term pending com pletion o f long term financing, by the sam e or another lender. 5The estim ate by the lessor o f the total cost o f financing the property over the term o f the lease should reflect, among other factors, the term o f the lease, the m odes o f financing available to the lessor, the credit rating o f the lessor and/or the le sse e, if a factor in the financing, and prevailing rates in the m oney and capital markets. 285 (v) the maximum lease term during which the lessor must recover the lessor’s full investment in the property plus the estimated total cost of fin ancing the property shall be 40 years; and (vi) at the expiration of the lease (including any renewals or extensions with the same lessee), all interest in the property shall be either liquidated or re-leased on a nonoperating basis as soon as practicable but in no event later than two years from the expiration of the lease,6 however, in no case shall the lessor retain any interest in the property beyond 50 years after its acquisition of the property. (6)(b) Leasing real property or acting as agent, broker or adviser in leasing such property pro vided: (i) the lease is to serve as the functional equiv alent of an extension of credit to the lessee of the property; (ii) the property to be leased is acquired speci fically for the leasing transaction under consid eration or was acquired specifically for an earlier leasing transaction; (iii) the lease is on a nonoperating basis; (iv) at the inception of the initial lease the effect of the transaction (and, with respect to govern mental entities only, reasonably anticipated future transactions4) will yield a return that w ill com pen sate the lessor for not less than the lessor’s full investment in the property plus the estimated total cost of financing the property over the term of the lease,5 from: (1) rentals; (2) estimated tax benefits (investment tax credit, net econom ic gain from tax, deferral from accelerated depreciation, and other tax benefits with a substantially similar effect); and (3) the estimated residual value of the property at the expiration of the initial term of the lease, which in no case shall exceed 20 per cent of the acquisition cost of the property to the lessor. (v) the maximum lease term during which the lessor must recover the lessor’s full investment in the property plus the estimated total cost of fin ancing the property shall be 40 years; and (vi) at the expiration of the lease (including any renewals or extension s with the same lessee), all interest in the property shall be eithfcr liquidated or re-leased on a nonoperating basis as soon as practicable but in no event later than two years from the expiration of the lease,6 however, in no 6In the event of a default on a lease agreem ent prior to the expiration of the lease term , the lessor shall either re-lease such property, subject to all the conditions o f this subsection 6(a), or liquidate such property as soon as practicable but in no event later than tw o years from the date o f default on a lease agreement. 286 FEDERAL RESERVE BULLETIN □ APRIL 1974 case shall the lessor retain any interest in the property beyond 50 years after its acquisition of the property. ^ 5fC ^ ^ ^ As an incident to this amendment the footnotes in § 225.4(a) which are denoted by asterisks and numbers are hereby redesignated as follow s for clarity and ease of reference: the footnote in § 225.4(a)(1) designated as * to footnote 1; foot notes 1 and 2 in § 225.4(a)(5) to footnotes 2 and 3; footnote 3 in § 225.4(a)(10) to footnote 7; footnote 3a in § 2 2 5 .4 (a )(ll) to footnote 8; the footnotes in § 225.4(a)(12) designated as * and ** to footnotes 9 and 10; footnote 1 in § 225.4(b)(1) to footnote 11; and footnote 2 in § 225.4(d) to footnote 12. RULES REGARDING DELEGATION OF AUTHORITY AND BANK HOLDING COMPANIES The Board of Governors has amended its Rules Regarding Delegation of Authority and its Regu lation Y to grant the Federal Reserve Banks au thority to approve under delegated authority the retention of bank stock acquired in a fiduciary capacity if a bank holding company undertakes unconditionally to dispose of such shares or the sole discretionary authority to vote such shares within a two year period. (29) Under the provisions of Section 3(a) of the Bank Holding Company Act (12 U .S .C . 1842), to approve by a letter of notification without com pliance with section 262.3(h) of the Board’s Rules of Procedures, the retention of shares of bank stock acquired in a fiduciary capacity (with sole voting rights) for a two-year period from the date of such acquisition, provided that the Applicant undertakes unconditionally to dispose of such shares or its sole discretionary voting rights with respect to such shares within two years from the date of such acquisition. 2. Effective March 19, 1974, section 225.3 of Regulation Y is amended by adding § 225.3(c) to read as follows: SECTION 2 25.3— ACQUISITION OR RETEN TION OF BANK SHARES OR ASSETS (c) A pplications to retain shares acquired in a fiduciary capacity. Applications under this sub section are processed on the basis of a letter of notification without compliance with section 262.3(h) of the Board’s Rules of Procedure. Any application for the Board’s approval to retain shares of bank stock acquired in a fiduciary capac 1. Effective March 19, 1974, section 265.2 ity (with sole voting rights), which is accompanied (f)(29) is added to read as follows: by an unconditional undertaking by the Applicant to dispose of such shares or its sole discretionary SECTION 2 65.2— SPECIFIC FUNCTIONS voting rights with respect to such shares within DELEGATED TO BOARD EMPLOYEES two years from the date of such acquisition, shall AND FEDERAL RESERVE BANKS be deemed to be approved 45 days after the Ap plicant has been informed by the Reserve Bank that said application has been accepted, unless the (f) Each Federal R eserve Bank is authorized, Applicant is notified to the contrary within that as to member banks or other indicated organi time or is granted approval at an earlier date. zations headquartered in its district, or under subparagraph (25) of this paragraph as to its officers: BANK H O L D IN G IS S U E D CO M PA N Y BY TH E ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT PEOPLES ST A T E B A N K S H A R E S , IN C ., R O SSV IL L E , K A N S A S O r d e r A p p r o v in g F o r m a tio n o f B a n k H o l d in g C om p an y P eoples State Bankshares, Inc., R o ssv ille, Kansas, 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 AND BOARD BANK O F M ERG ER O R D ER S G O V ER N O RS company through acquisition of 81 per cent or more of the voting shares of Peoples State Bank, R ossville, Kansas (“ Bank” ). Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). 287 LAW DEPARTMENT Applicant, a recently formed corporation, was organized for the purpose of owning and operating Bank. Bank, with deposits of $5.7 m illion,1 is the only banking institution in the rural town of Rossville (population of 1,000), located 15 miles from Topeka, Kansas. Since Applicant has no present operations or subsidiaries, it appears that consum mation of the proposal would not affect existing or potential competition, nor have an adverse effect on other area banks. Competitive consid erations are consistent with approval ofthe appli cation. The financial and managerial resources and fu ture prospects of Applicant depend upon those of Bank. In view of Bank’s past record of earnings, it appears that Applicant would be able to finance the debt incurred in acquiring Bank without plac ing an undue strain on Bank’s resources. The financial condition of Bank is considered satis factory and its management has been strengthened as a result of Bank’s new ownership. Prospects for Applicant and Bank are favorable, and it ap pears that the strengthening of Bank’s management would enhance its ability to provide for the com m unity’s banking needs. Accordingly, consid erations relating to this aspect of the proposal are consistent with approval. In its consideration of this application, the Board has examined a covenant not to compete contained in an employment agreement which was executed in connection with the proposal. The Board finds that the provisions of this covenant are reasonable in duration, scope, and geographic area and are consistent with the public interest. It is the Board’s judgment that the proposed trans action would be in the public interest and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made (a) before the thir tieth calendar day follow ing the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. By order of the Board of Governors, effective March 29, 1974. V oting fo r th is actio n : C h airm an B u rn s and G o v ern o rs M itch ell, B u ch e r, an d H o llan d . V oting a g ain st this action: 1 A ll banking data are as o f June 3 0, 1973. G o v ern o r B rim m er. A b sent and not voting: G o v ern o rs S heehan and W allich. (Signed) [s e a l] B. F e l d b e r g , Secretary of the Board. C h ester D is s e n t in g S t a t e m e n t o f G o v e r n o r B r im m e r I would deny the application by Peoples State Bankshares, Inc. to acquire Peoples State Bank and thereby become a bank holding company. My decision is based on an examination of a covenant not to compete contained in an em ployment agreement that is incident to this proposal. The former president and majority shareholder of Bank has entered into a one-year employment contract with Bank. Subsequent to termination of his em ployment, he is prohibited by the covenant from engaging in the business of banking for five years within a fifteen mile radius of R ossville. In my view , covenants of this type necessarily inhibit competition and should not be sanctioned by the Board. The purpose of such a covenant is to preclude the restricted individual from offering his support and expertise to a convenient alternative source of commercial banking services in the R ossville area in the near future. For reasons stated more fully in my dissent to the application of First Alabama Bancshares, Inc., to acquire Citizens Bank of Guntersville (59 Federal Reserve B u l l e t i n 757), such a result is inherently anticompeti tive. In order for this application to be approved, Applicant would have to establish that the anti competitive effects of such a covenant “ are clearly outweighed in the public interest by the probable effect of the transaction in meeting the conven ience and needs of the community to be served.” In my view , this has not been established, and the Board’s approval of this application cannot be supported. ATLANTIC BANCORPORATION, JACKSONVILLE, FLORIDA O r d e r D e n y in g A c q u isit io n o f B a n k Atlantic Bancorporation, Jacksonville, 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 not less than 80 per cent of the voting shares of Bank of New Smyrna, New Smyrna Beach, Florida ( “ Bank” ). 288 FEDERAL RESERVE BULLETIN □ APRIL 1974 By Order of November 22, 1972, the Board of Governors denied the application of Atlantic Ban corporation to acquire Bank (37 Federal Register 25 5 7 1 ).1 On May 24, 1973, the Board granted Applicant’s Request for Reconsideration. The R e quest for Reconsideration, filed pursuant to section 262.3(g)(5) of the Board’s Rules of Procedure (12 CFR 262.3(g)(5)), was granted because the request presented relevant facts (concerning the market in which Bank operates) that, for good cause shown, were not previously presented to the Board, and reconsideration otherwise appeared appropriate. Notice of the Board’s Order granting Appli cant’s Request for Reconsideration of its applica tion to acquire Bank has been given (38 Federal Register 14727) and the time for filing comments and views has expired and none has been timely received. The Board has reconsidered this appli cation and supplemental material received in con nection therewith in light of the factors set forth in § 3(c) of the Act. Atlantic, the sixth largest banking organization and bank holding company in Florida, controls 30 banks with aggregate deposits of approximately $1.2 billion, representing about 5.1 per cent of deposits in commercial banks in the State.2 A c quisition of Bank ($29.7 million in deposits) would not represent a significant increase in Ap plicant’s share of total deposits in the State. At the request of the Board, the Federal Reserve Bank of Atlanta conducted a survey in the New Smyrna area and the results of this survey indicate that the two New Smyrna Beach banks, Bank and First National Bank ($12.7 million in deposits), operate in a local banking market3 which adjoins, but is separate from the Daytona Beach banking market. Applicant presently operates two banking sub sidiaries in the Daytona Beach banking market and is the second largest banking organization in that market with nearly 20 per cent of market deposits. Bank, located in the adjacent New Smyrna Beach market, is the dominant commercial banking in stitution in New Smyrna Beach, controlling over 70 per cent of market deposits. The other com mercial bank in New Smyrna Beach, First National Bank, is less than half the size of Bank. Bank and Applicant’s Daytona Beach banking subsidiaries are in separate banking markets; however, there is some slight competitive overlap between these banks with respect to certain bank ing services. Nonetheless, in viewing the total product market of commercial banking, the amount of competition eliminated is not signifi cant. In the Board’s view , Applicant is one of the most likely entrants into the New Smyrna Beach banking market in light of the facts of record; namely, its capabilities for entry, the proximity of New Smyrna Beach to an area where Applicant has a significant presence (Daytona Beach), its expansion policy, and its expressed interest in the New Smyrna Beach market. Moreover, the New Smyrna Beach market appears to be capable of supporting new entry. If Applicant entered the New Smyrna Beach banking market de novo, or through the acquisition of a smaller bank, the effect would likely be procompetitive and in the public interest. Given the present concentration of the New Smyrna Beach banking market, the ad verse effect consummation of this proposal would have upon the prospects for increased competition and deconcentration in the relevant market, the probability of Applicant as a future entrant into that market, and the opportunity for an alternative means of entry into New Smyrna Beach, the Board concludes that consummation of the transaction would have a substantially adverse effect on po tential competition. The financial condition and managerial re sources and future prospects of Applicant, its subsidiary banks and Bank are regarded as satis factory. Thus, banking factors are consistent with approval but provide no significant support for such action. There is no evidence in the record that the banking needs of the residents of the New Smyrna Beach area are not being adequately met at the present time. Moreover, consummation of the proposed transaction would have little impact on the convenience and needs of banking custom ers in the area since Applicant proposes no mean ingful new service not already being offered. A c cordingly, the Board finds that the anticompetitive effects inherent in Applicant’s proposal are not outweighed by considerations relating to the con venience and needs of the community to be served. On the basis of the record in this case and for the reasons set forth in this Order, the Board’s 1 Board denial was in part prem ised on the fact that acquisi tion o f Bank would further increase the concentration of banking resources in the Daytona Beach banking market since the N ew Smyrna Beach area was considered a part o f that market. 2 All banking data are as o f June 3 0 , 1973, and reflect bank holding com pany acquisitions and formations approved by the Board through D ecem ber 3 1 , 1973. *The N ew Smyrna Beach banking market is defined as that portion o f V olusia County including N ew Smyrna Beach south to the county line. LAW DEPARTMENT Order of November 22, 1972, is hereby affirmed and the subject application is denied. By order of the Board of Governors, effective March 18, 1974. 289 Barnett Banks of Florida, Inc., Jacksonville, Florida, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(3) of the Act (12 U .S .C . 1842(a)(3)) to acquire 80 per cent or more of the voting shares of (1) The Bank of Naples, Naples, Florida ( “ Naples Bank” ) and (2) The Collier County Bank, Naples, Florida ( “ Collier Bank” ). Notice of the applications, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant controls 49 banks with aggregate de posits of $1.6 billion, representing about 8 per cent of deposits in commercial banks in Florida.1 A c quisition of Naples Bank (deposits of $73.6 m il lion) and of the Collier Bank (deposits of $9.6 m illion) would not significantly increase the con centration of banking resources in the State. Moreover, there is no evidence of record to indi cate the development of a significant trend toward increased concentration of banking resources in Florida. Nor does Applicant’s recent growth through acquisitions present a pattern of acquiring major banks in the primary or secondary SM SA ’s in the State. Naples Bank and Collier Bank are both located in the same banking market and, together, control approximately 39 per cent of the deposits in com mercial banks in the market.2 The market is neither classified as an SMSA nor viewed as a significant market in terms of either population or deposits. No competition exists between Naples Bank and Collier Bank as both banks are closely affiliated with the leading directors of Naples Bank also being directors of Collier Bank. In addition, three families who control a majority of the shares of Naples Bank have a significantly influential ow n ership position in the Collier Bank. Moreover, the two banks share many common operating facili ties, such as data processing and bookkeeping functions. Based on this and other facts of record, the Board concludes that the probability of disaf filiation occurring between Naples Bank and C ol lier Bank within the reasonably foreseeable future is slight. There is little existing competition between any of Applicant’s banking subsidiaries and either Naples Bank or Collier Bank. Moreover, it does not appear that future competition between any of Applicant’s banking subsidiaries and either Collier Bank or Naples Bank is reasonably probable due to the distances between the banks and Florida’s restrictive branching law. Applicant is not a likely de novo entrant into the Collier County banking market since the market is relatively unattractive as measured by its deposits and population per banking office ratios compared to Statewide ratios. Moreover, there are no other significantly smaller banks in Naples, the commercial center of Collier County, which Applicant could acquire as an al ternative means of entry to that of Naples Bank. Based on these facts and others of record, the Board concludes that competitive considerations are consistent with approval of the applications. The financial and managerial resources and fu ture prospects of Applicant, its subsidiary banks, and Naples Bank and Collier Bank are regarded as generally satisfactory particularly in light of Applicant’s commitment to retire certain capital notes of Naples Bank. Retirement of the notes would improve Naples Bank’s capital position and lend support for approval of the 'application to acquire Naples Bank. Considerations relating to the convenience and needs of the community to *A11 banking data are as o f June 30, 1973 and represent bank holding com pany acquisitions approved by the Board through D ecem ber 31, 1973. 2The relevant banking market is approximated by C ollier County minus the town of Im m okalee. V o tin g fo r this action: C h airm an B urns and G o v ern o rs M itc h ell, B rim m er, S h e e h an , B u ch e r, and H o llan d . A b sen t and not v o tin g : G o v e rn o r D aan e. B oard action w as taken w hile G o v e rn o r D aan e w as a B o ard m em b er. [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the B oa rd. BARNETT BANKS OF FLORIDA, IN C ., JACKSONVILLE, FLORIDA O r d e r A p p r o v in g A c q u is it io n o f B a n k s 290 FEDERAL RESERVE BULLETIN □ APRIL 1974 be served provide some support for approval of the applications since affiliation with Applicant should enable Naples Bank and Collier Bank to increase their services particularly in the fields of consumer lending and provision of trust services. The Board concludes that the proposed transac tions are in the public interest and should be approved. On the basis of the record, the applications are approved for the reasons summarized above. The transactions shall not be made (a) before the thir tieth calendar day following the effective date of this Order or (b) later than three months after the effective date of this Order unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta purpsuant to delegated authority. By order of the Board of Governors, effective March 4, 1974. In my judgment, this case does not have the anticompetitive aspects noted above. Though Bar nett is one of Florida’s largest and most aggressive holding com panies, it has in many instances ex panded de novo or through the acquisition of relatively small banks. In Barnett’s case, there has certainly been no pattern of entering markets by acquiring the largest banks. Another distinguishing factor in this case is the market itself. The Naples market cannot be regarded as being a major Florida market. The population of the town of Naples is only 12,000, and the entire market (Collier County) has only 4 3 ,0 0 0 people. Acquisitions in these markets do not have the important im plica tions for competition throughout the State that similar acquisitions in the State’s major markets have. I would concur in the conclusion that the Naples market is not attractive for de novo entry. More over, the Naples market has no small banks that could be regarded as attractive foothold acquisi tions. Therefore, I believe that the elimination of potential competition as it relates to the Naples market itself is not a significant issue in this case. V oting for this a ctio n : V ice C h airm an M itch ell and G o v e r nors B rim m er, S h e e h an , B u ch er, and H o llan d . A b sen t and not voting: C h airm an B urns and G o v ern o r D aane. (Signed) [s e a l] B. F e l d b e r g , Secretary of the B oard. C h ester C o n c u r r in g S t a t e m e n t o f G o v e r n o r B r im m e r I agree that this application should be approved. Although the Naples Bank must be considered a relatively large bank in Florida and is the largest bank in the Naples banking market, the factors that have led me to vote to deny several recent applications are not present in this case. In the other applications, the holding companies had es tablished a consistent pattern of acquiring the largest banks in important banking markets throughout a State1 Such acquisitions by the largest holding companies, if unchecked, would increase the already substantial disparity in size between a State’s largest organizations and the smaller holding companies. This is especially true in a State whose holding company movement is in its early stages. The outcome would be a situation in which a few large organizations would control the largest banks in almost every important city in the State. This type of banking structure would foster a high degree of interdependence among the leading firms, thereby stifling competition in banking markets throughout the State. 'S e e , for exam ple, Board order at 1974 Federal Reserve B u l l e t i n 43. FIRST INTERNATIONAL BANCSHARES, IN C ., D A LLA S, TEXAS O r d e r D e n y in g A c q u isit io n o f B a n k First International Bancshares, Inc., Dallas, Texas, 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 all of the voting shares (less directors’ qualifying shares) of the successor by merger to The First National Bank of W aco, W aco, Texas ( “ Bank” ). The bank into which Bank is to be merged has no signifi cance except as a means to facilitate the acquisition of the voting shares of Bank. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed ac quisition of the shares of Bank. Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant is the largest banking organization and bank holding company in Texas and controls 15 banks with aggregate deposits of $2.8 billion, LAW DEPARTMENT representing approximately 8 per cent of the total deposits in commercial banks in T exas.1 The ac quisition of Bank (deposits of $142.3 million) would increase Applicant’s control of commercial bank deposits in Texas from 7.98 per cent to 8.39 per cent. Bank is the largest bank located in the W aco SMSA banking market. Applicant’s banking sub sidiary closest to Bank is located 35 miles away in Temple. The Board concludes that no existing competition would be eliminated between Bank and any of Applicant’s subsidiary banks upon consummation of this proposal. The respective service areas of Bank’s data processing subsidiary and Applicant’s data processing subsidiary located in Dallas overlap. However, Applicant’s data pro cessing subsidiary derives an insignificant amount of its business from the service area of Bank’s subsidiary, and Bank’s data processing subsidiary derives no business from the service area of A p plicant’s data processing subsidiary. The Board concludes that no significant existing competition would be eliminated between the two data pro cessing subsidiaries upon consummation of the proposed acquisition. The Board is concerned, however, about the effect this proposed acquisition would have on potential competition with respect to the Waco SM SA banking market and throughout the State. In a recent Order denying Applicant’s application to acquire the largest bank in the Tyler SMSA banking market,2 the Board noted an increase in the concentration of the State’s commercial bank deposits held by the five largest banking organi zations in Texas. The Board expressed concern over the present size disparity among the State’s bank holding companies and the likelihood that this disparity may become greater in the future by virtue of Applicant’s present acquisition policy, which involves entry into a number of the secon dary SM SA banking markets3 in Texas through acquisition of a leading bank in each market it enters. The Board stated that it would guard against the tendency toward undue concentration not only in a local banking market but at the Statewide level as w ell when viewing the probable effect of an acquisition upon potential competition. ’ All banking data are as o f D ecem ber 3 1, 1972, and reflect bank holding com pany formations and acquisitions approved by the Board through N ovem ber 15, 1973. 2See Board’s Order dated D ecem ber 2 8, 1973, denying the application o f First International Bancshares, Inc., D allas, T exas, to acquire C itizens First National Bank o f T yler, Tyler, T exas. 291 The W aco SM SA banking market is highly concentrated with the two largest of 15 banking organizations controlling 65 per cent of the mar ket’s total commercial bank deposits, and about 56 per cent of the market’s total IPC deposits in accounts of $100,000 or less. Bank, the largest of the 15 banks in the market, controls 3 4.6 per cent of the total commercial bank deposits in the market. The second largest bank controls 30.4 per cent of market deposits, while the third largest controls only 7.3 per cent of such deposits. It is clear that Applicant possesses the resources for de novo entry into the Waco SMSA banking market. There is evidence that suggests that suc cessful de novo entry could occur; both deposits per banking office and population per banking office ratios are slightly above comparable State averages. In addition, there appear to be smaller banks in the market available for acquisition. The Board concludes that acquisition of one of the smaller banks in the area or de novo entry would be clearly preferable from a competitive standpoint to the proposal herein. As the Board has previously noted, these secondary SM SA banking markets will become less concentrated only if the major holding companies enter de novo or via foothold acquisitions, thereby creating additional com peti tion in the markets. On the basis of the foregoing and all other facts in the record, the Board concludes that this pro posal, in light of Applicant’s previous acquisition policy, would have significantly adverse effects on potential competition with respect to the W aco SMSA banking market and throughout Texas. Unless such anticompetitive effects are clearly outweighed in the public interest by the probable effect of the transaction in meeting the conven ience and needs of the communities to be served, the application must be denied. The financial and managerial resources and fu ture prospects of Applicant and its subsidiaries are satisfactory and consistent with approval. The fi nancial resources of Bank are regarded as gener ally satisfactory in view of recent increases in Bank’s deposits and capital and the improvement in Bank’s earnings since the discontinuation of a large monthly management fee which Bank was paying to an affiliate. Applicant has stated its willingness to strengthen Bank’s capital by an :lA secondary SM SA market in T exas is defined as an SM SA market other than T exas’ four largest SM SA markets, i.e ., other than the D allas, Fort W orth, H ouston, and San A ntonio SM SA markets. 292 FEDERAL RESERVE BULLETIN □ APRIL 1974 injection of equity capital. The Board believes that affiliation with Applicant is not the only means by which Bank’s financial resources could be fur ther strengthened. The acquisition of Bank by a smaller bank holding company would not result in the same anticompetitive effects as the acquisi tion by Applicant and could effectuate similar assistance. Affiliation with Applicant would pro vide Bank with access to Applicant’s managerial resources and expertise, thereby lending weight toward approval of the application. However, the Board concludes that banking factors do not out weigh the substantially anticompetitive effects the proposal would have upon potential competition. Although there is no evidence in the record that banking needs of the residents of the Waco area are not presently being met, affiliation with Appli cant would enable Bank to expand its services to include factoring, econom ic forecasts, petroleum engineering consultation and industrial develop ment advice. In addition, by providing Bank with access to its financial and managerial resources and expertise, Applicant would strengthen Bank’s ability to provide banking services to the Waco area. However, although considerations relating to the convenience and needs of the communities to be served lend weight toward approval of the application, they do not clearly outweigh the sub stantially adverse effects this proposed acquisition would have upon competition in the W aco SMSA banking market and throughout Texas. It is the Board’s judgment that consummation of the proposed acquisition would not be in the public interest and that the application should be denied. On the basis of the record, the application is denied for the reasons summarized above. By order of the Board of Governors, effective March 1, 1974. the application of First International to enter the Tyler SMSA banking market through acquisition of the Citizens First National Bank of Tyler on the basis that the acquisition would have adverse effects upon potential competition in the Tyler SMSA banking market and throughout Texas. I agree with the majority that the present proposal by First International would produce similar ad verse effects upon potential competition. H ow ever, in my opinion, there are other public interest considerations present in this proposal which were lacking in the Tyler situation and which outweigh the anticompetitive effects of the instant proposal. Bank has experienced financial problems in the areas of earnings, assets and capital. Until re cently, Bank’s earnings have been hampered by a large monthly management fee which was paid to an affiliate. While the majority notes that Bank’s earnings have improved since the discontinuation of the management fee, and that Bank’s capital and deposits have increased, I am of the opinion that affiliation with Applicant is desirable to further strengthen Bank’s financial condition and policies. Applicant has stated its w illingness to inject equity capital into Bank; such an injection would strengthen the capital of Bank and increase its lending capacity. In addition, affiliation with Ap plicant would guarantee a termination of the rela tionship between Bank and its holding company parent, thereby insuring that the managment fees and earlier policies will not be reinstated. The majority has suggested that the acquisition of Bank by a smaller bank holding company could remedy Bank’s financial problems without having the same anticompetitive effect as the instant proposal. In my judgment, affiliation with a significantly smaller holding company would not be effective. Thus, consummation of the proposed acquisi tion is needed for the strengthening effect upon the financial and managerial resources of Bank which in turn will enable Bank to best serve the banking public of the W aco area. V oting for this actio n : C h airm an B urns and G overnors B rim m er, B u ch er, and H o llan d . V o tin g a g ain st this action: G ov ern o rs M itch ell, D aan e, and S h eeh an . (Signed) [s e a l] B. F e l d b e r g , Secretary of the Board. C h e ster D is s e n t in g S t a t e m e n t o f G o v e r n o r M it c h e l l I would approve this application of First Inter national Bancshares, Inc., to enter the Waco SMSA banking market through acquisition of The First National Bank of W aco. In my view , such anticompetitive effects as would result from the proposed acquisition are outweighed by the public interest considerations involving banking factors. I joined in the majority’s recent action denying D is s e n t in g S ta tem en t of G overnors D aane and S h eeh an We dissent from the majority’s action denying the application of First International Bancshares, Inc., to acquire The First National Bank of Waco. The majority has emphasized the similarity of this application with the recent application by Interna tional Bancshares to acquire the largest bank in Tyler. W e would have approved that application and, for similar reasons, would approve the subject application. In our opinion, the present proposal would have no adverse effects upon competition LAW DEPARTMENT in W aco or in Texas, and, in fact, would produce significant benefits to the banking public in W aco, as well as in Texas and the Southwest. While the proposed acquisition would give A p plicant control of the largest bank in the Waco SMSA banking market, the second largest bank in this market is not significantly smaller. Thus, approval would not give Applicant a dominant position in the market nor raise the barriers to entry for bank holding companies now outside this mar ket. Moreover, significant benefits would accrue to the banking public through approval of the application. Bank’s lending capacity would be increased by Applicant’s proposed injection of equity capital into Bank. In addition, Bank would be able to draw upon Applicant’s managerial re sources and expertise in dealing with commercial problems peculiar to the area. We conclude that the improvement in Bank’s financial and manage rial resources resulting from Bank’s affiliation with Applicant would strengthen Bank’s ability to pro vide banking services to the community; conven ience and needs considerations therefore lend weight toward approval. The majority has expressed concern that ap proval of the application would have substantially adverse effects on competition in Texas. As we indicated in our dissent from the majority’s action denying the Tyler application, we are not con vinced that the acquisition of banks in secondary SM SA ’s by Applicant and its competitors will adversely affect competition in the State. None of the five largest bank holding companies in Texas has acquired a dominant position in a secondary SM SA, nor have their acquisitions to date fore closed the opportunity for other Statewide or re gional bank holding companies to develop in Texas. Furthermore, we believe approval would tend to foster the econom ic development of Texas, as w ell as the Southwest region of the United States, by encouraging the development of local institutions which are capable of serving the growing domestic and international interests of Texas corporations now being served by out-ofState banks. W e believe that the continued growth of Texas banking organizations is necessary if they are to effectively compete in Texas, the Southwest and the nation’s major money markets. Finally, we concur as well with the portion of The Dissenting Statement of Governor Mitchell which relates to banking factors. 293 FROSTBANK CORPORATION, SA N ANTONIO, TEXAS O r d e r A p p r o v in g A c q u is it io n o f B a n k FrostBank Corporation, San Antonio, Texas, 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 Peoples National Bank, San Antonio, Texas ( “ Bank” ), a proposed new bank. Notice of the application, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant, the tenth largest banking organi zation in Texas, presently controls four banks with aggregate deposits of approximately $542 m illion, representing 1.6 per cent of the total deposits in commercial banks in T exas.1 Since Bank is a proposed new bank, consummation of the proposed acquisition would not immediately in crease Applicant’s share of commercial bank de posits in the State. Bank is to be located in northern San Antonio, which is part of the San Antonio SM SA banking market. Applicant presently has three subsidiary banks (one of which is a recently acquired de novo bank) in the relevant market and controls 2 4.6 per cent of the total commercial bank deposits in the market. Since Bank is a proposed new bank, Applicant’s acquisition of Bank would not have any immediate effect on Applicant’s share of commercial bank deposits in the San Antonio SMSA banking market; nor would it have any significant adverse effects on existing or potential competition with respect to the San Antonio SMSA banking market. In reaching this conclu sion, the Board recognizes that continual de novo expansion by the market’s largest banking organi zation within a particular area of the market could reduce the prospects for market deconcentration by pre-empting viable sites for de novo entry by other banking organizations not already repre- *A11 banking data are as of June 30 , 1973, and reflect bank holding com pany acquisitions, approvals, and divestitures through January 31, 1974. 294 FEDERAL RESERVE BULLETIN □ APRIL 1974 sented in the market. However, with regard to this case, the evidence indicates that the northern San Antonio area is experiencing rapid and substantial growth and can support additional entries by other banking organizations. Accordingly, competitive considerations are consistent with approval of the application. The financial and managerial resources and fu ture prospects of Applicant and its subsidiary banks are regarded as satisfactory. Bank, as a proposed new bank, has no financial or operating history; however, its prospects as a subsidiary of Applicant appear favorable. Considerations relat ing to the banking factors are consistent with approval of the application. The addition of a new banking alternative in the rapidly growing San Antonio market will provide greater convenience to a segment of the population in this market. In addition, Bank’s affiliation with Applicant will enable it to provide its customers with access to Applicant’s specialized services, expertise, and financial resources. Accordingly, considerations relating to convenience and needs of the commu nity to be served lend some weight toward ap proval of the application. It is the Board’s judg ment that the proposed acquisition is in the public interest and that the application should be ap proved . On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made (a) before the thir tieth calendar day following the effective date of this Order or (b) later than three months after that date, and (c) Peoples National Bank, San Antonio, Texas, shall be opened for business not later than six months after the effective 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 Dallas pursuant to delegated authority. By order of the Board of Governors, effective March 18, 1974. V oting for this a ctio n : C h airm an B urns and G overnors M itch ell, B rim m er, S h e e h an , B u ch er, H o lla n d , and W allich. (Signed) [s e a l] T h eod ore E. MERCANTILE BANCORPORATION, IN C ., ST. LOUIS, MISSOURI O rder A ppro ving A cq uisitio n of B a n k Mercantile Bancorporation, Inc., St. Louis, Missouri, 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’ quali fying shares) of Mercantile National Bank of Clay County ( “ Bank” ), Kansas City, Missouri, a proposed new bank. Notice of the application, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received, including those on behalf of North Hills Bank, First National Bank of Gladstone, North Kansas City State Bank, Bank of Riverside, and Metro North State Bank (hereinafter collectively referred to as “ Protes tants” ) in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant, the largest banking organization and bank holding company in Missouri, controls 15 banks with aggregate deposits of approximately $1.2 billion, which represent 9.2 per cent of total commercial bank deposits in the State.1 Since Bank is a proposed new bank, its acquisition would neither eliminate any existing competition nor immediately increase Applicant’s share of commercial bank deposits. Bank will be located in a rapidly growing resi dential area in the northern part of the Kansas City banking market.2 It is anticipated that Bank will serve primarily southeast Platte County and south west Clay County. Due in part to the proximity of the new Kansas City International Airport, it is expected that Bank’s proposed service area will continue to experience a steady growth in popula tion with an attendant need for additional sources for banking services.3 W hile Applicant has three A llis o n , Assistant Secretary of the Board. ’ All banking data are as of June 30, 1973, and reflect bank holding com pany form ations and acquisitions approved through February 28, 1974. 2The Kansas City banking market is approximated by the Kansas City S M S A , excludin g the southern half of Cass County. 3 Betw een 1960 and 1970 the population in Clay and Platte Counties increased at annual rates of 3.5 and 3.2 per cent, respectively, as compared with a Statewide annual growth rate of 0 .8 per cent. The Kansas City SM S A , for the same period, grew at an annual rate of 1.4 per cent. LAW DEPARTMENT banking subsidiaries in the market and is the fifth largest banking organization therein, Applicant controls only 3.3 per cent of market deposits. Under such circumstances, the formation of a new bank is viewed as an attempt to provide additional banking services to a growing area and, from the facts of record, is not regarded as an attempt to preempt a market. Protestants contend generally that approval of this application would have such adverse com peti tive consequences as to merit denial of the appli cation. In support of their contention, Protestants claim the relevant market for determining the competitive effects of the proposal is a funnelshaped area, described as an area with the central business district of Kansas City, Missouri, at the neck of the funnel and then widening to include the southern parts of Platte and Clay Counties. Even assuming Protestants’ determination of the relevant market were appropriate, the Board’s competitive analysis would not be altered, since Applicant is only the fourth largest banking orga nization in the described area with only 5.5 per cent of the area’s deposits. In a related matter, Protestants contend that an investigation is war ranted into whether the larger bank holding com panies in Missouri have conspired to divide terri tories and markets and m onopolize banking in Missouri. However, in the Board’s view , Protes tants offer no substantial evidence to support such contentions, nor do the facts of record indicate that Applicant is acting in consort with any other bank holding company in Missouri. On the other hand, it appears that each of the State’s five largest bank holding companies is in active competition with one another in the Kansas City banking market and, even in the market delineated by Protestants, three of the State’s largest bank hold ing companies (including Applicant) either have or propose to have subsidiary banks in competition with one another. On this basis, the Board is unable to conclude that such banking organizations have conspired to lessen competition or to monopolize banking in the relevant area. In the course of its review of this application the Board has also considered the comments from Protestants to the effect that affiliation of Applicant with Bank would be in violation of the Missouri statute prohibiting branch banking. The Board notes that the Comptroller of the Currency has recommended approval of the pending application and that his office has granted preliminary approval for the charter of Bank, apparently concluding that it would not be an illegal branch under applicable 295 Missouri law. Furthermore, the facts of record indicate that Bank will be a separate corporation, with its own capital stock and a loan limit based on such capital stock; Bank will be managed by its own officers; Bank’s board of directors will be generally separate and independent from the boards of Applicant and of Applicant’s subsidi aries; and Bank will maintain its own separate books of account, issue its own distinctive checks, and use its own stationery. Applicant states that no officers or em ployees of its other banking subsidiaries will perform services directly for cus tomers of Bank, nor exercise any managerial supervision over the business of Bank. Applicant represents further that it w ill purchase Bank’s shares through use of its own capital resources. Finally, Applicant states that money deposited at Bank will not be credited to the account of a depositor at any other banking subsidiary of A p plicant and, conversely, any money deposited at any other banking subsidiary of Applicant will not be credited to the account of a depositor at Bank. The Board concludes, on the basis of the above and other facts of record, that Applicant is a “ traditionally recognized bank holding company which, with its own capital, invests in or buys the stock of banks,” Whitney National Bank v. Bank of N ew Orleans, 323 F.2d 290 (D .C . Cir. 1963), rev’d on other grounds, 379 U .S . 411 (1965) and that, upon consummation of the proposed acquisition, a unitary operation will not exist between Bank and any of Applicant’s other banking subsidiaries in contravention of M is souri’s branching law. The financial condition, management, and pros pects of Applicant and its subsidiary banks are regarded as satisfactory. As a new bank, Bank has no operating financial history; however, its proposed capitalization, management, and pros pects appear satisfactory. The Board concludes that the banking factors are consistent with ap proval. Considerations relating to the convenience and needs of the community to be served lend some weight toward approval since Bank will provide an additional source of full banking ser vices in a rapidly growing area. It is the Board’s judgment that consummation of the proposed ac quisition would be in the public interest and that the application should be approved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made (a) before the thir tieth calendar day following the effective date of this Order or (b) later than three months after that 296 FEDERAL RESERVE BULLETIN □ APRIL 1974 date, and (c) Mercantile National Bank of Clay County, Kansas City, Missouri, shall be opened for business not later than six months after the effective 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 St. Louis pursuant to delegated authority. By order of the Board of Governors, effective March 15, 1974. Southeast Banking Corporation, Miami, Flor ida, 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 The First National Bank of H o m estea d , H o m este a d , Florida ( “ Bank” ). Notice of the application, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant, the largest bank holding company in Florida, controls 29 banks with aggregate deposits of approximately $1.8 billion, representing 8 .6 per cent of total deposits in commercial banks in Florida.1 Acquisition of Bank would increase Ap plicant’s share of State deposits by 0.1 6 percentage point and enable Applicant to strengthen its posi tion as the State’s largest banking organization. Bank ($32.0 million in deposits) ranks 47th out of the 99 commercial banks located in the Greater Miami Banking Market (approximated by Dade County and the southern third of Broward County) and holds approximately 0.62 per cent of the commercial bank deposits in that market. In that market Applicant is already by far the largest banking organization with seven subsidiary banks controlling 22.87 per cent of the total market deposits. Acquisition of Bank would increase the concentration of banking resources in the relevant market since Applicant’s share of market depostis would rise to 2 3.49 per cent, thereby increasing the size disparity between Applicant and the sec ond largest banking organization within the market which controls less than 9 per cent of total market deposits. In addition to effects of the proposal on banking concentration in the Miami market, the Acquisi tion of Bank by Applicant would also eliminate existing competition and foreclose the develop ment of significant potential competition in the relevant market. Bank is located in the southern extremity of Dade County, Florida, in the town of Homestead, approximately 30 miles from downtown Miami. Of its seven subsidiaries in the market, Applicant’s closest subsidiary (Southeast Bank of Dadeland) is nineteen miles from Bank, and Bank competes directly in an area served by Applicant’s lead bank.2 Applicant’s banking sub sidiaries derive approximately $1.0 million in de posits and $3.5 million in loans from the H om e stead area; furthermore, Applicant’s mortgage subsidiary (Southeast Mortgage Company) has outstanding loans of approximately $0.8 million in Homestead. Thus, consummation of this trans action would adversely affect existing competition within the market, especially within the Hom e stead area, and, as noted above, would solidify Applicant’s substantial position within the market. With respect to potential competition, approval of the proposal would remove Bank as a possible entry vehicle for a bank holding company not already represented in the area. Moreover, it ap pears that Applicant possesses adequate resources for de novo expansion in the Greater Miami Banking Market. Per capita deposits, population per banking office and income per banking office are higher than the respective State averages, making the market most attractive for de novo entry. Taken as a separate entity, the Homestead area enjoys a rapid growth rate which would make it suitable for such entry. Instead of removing a banking competitor and eliminating direct com pe 'A ll banking data are as o f June 3 0, 1973, and reflect bank holding com pany form ations and acquisitions approved through January 3 1 , 1974. 2First National Bank of Miami (the largest single bank within the market) alone has aggregate deposits of approxim ately $1 billion, representing 19.27 per cent of the total deposits in com m ercial banks w ithin the Greater M iami Banking Market. V o tin g for this a ctio n : C h airm an B urns and G overnors B rim m e r, S h e e h an , and H o llan d . A b sen t and not voting: G o v e rn o rs M itc h ell, B u ch er, and W allich . [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the Board. SOUTHEAST BANKING CORPORATION, MIAMI, FLORIDA O r d e r D e n y in g A c q u isit io n o f B a n k 297 LAW DEPARTMENT tition, the alternative of de novo entry would have the beneficial effect of increasing banking com pe tition in the Homestead area through the introduc tion of a new banking alternative. On the basis of the foregoing and the facts of record, the Board concludes that consummation of the proposal would have significant adverse effects on competition in the relevant market. Accordingly, competitive considerations require denial of this application unless the anticompeti tive effects are clearly outweighed by benefits to the public in meeting the convenience and needs of the communities to be served. The financial and managerial resources and fu ture prospects of Applicant and its present subsid iary banks are regarded as satisfactory, particularly in view of Applicant’s commitments to inject equity capital into certain of its subsidiary banks. The financial and managerial condition and future prospects of Bank are satisfactory. Therefore, the financial and managerial resources and future prospects of Applicant and Bank are regarded as being consistent with approval of the application, but do not lend significant weight for approval. Although there is no evidence in the record that the major banking needs of the community are not adequately being served, Applicant proposes to expand the range of services presently offered by Bank. While such increased services might inure to the benefit of the public, such benefits are not exclusive to Applicant’s proposal. The Board is thus unable to conclude that considerations relating to convenience and needs clearly outweigh the adverse competitive considerations inherent in the proposal. On the basis of all relevant facts in the record, the Board concludes that approval of the proposed acquisition is not in the public interest, and the application is denied for the reasons summarized above. By order of the Board of Governors, effective March 22, 1974. V oting fo r this action: C h airm an B urns and G o v ern o rs B rim m er, S h eeh an , B u ch e r, H o llan d , and W allich . A b sen t and not voting: G o v e rn o r M itch ell. (Signed) [s e a l] B. F e l d b e r g , Secretary of the Board. C h ester VALLEY OF VIRGINIA BANKSHARES, INC., HARRISONBURG, VIRGINIA O r d e r A p p r o v in g A c q u is it io n o f B a n k Valley of Virginia Bankshares, Inc., Harrison burg, Virginia, 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 ac quire all of the voting shares of the successor by merger to Western Frederick Bank, Gore, Virginia ( “ 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. Accordingly, the proposed acquisition of shares of the successor organization is treated herein as the proposed acquisition of the shares of Bank. Notice of the application, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the application and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Applicant controls two banks with aggregate deposits of $108.7 million, representing approxi mately 1 per cent of the total commercial bank deposits in Virginia, and is the thirteenth largest banking organization in the State. (All banking data are as of June 30, 1973, and reflect holding company formations and acquisitions approved through February 28, 1974.) The acquisition of Bank (deposits of $3.8 m illion) would not signifi cantly increase the concentration of banking re sources in Virginia. Bank, which maintains its only office in the town of Gore (population of 200), is the smallest of five banking organizations in the Winchester banking market1 and holds about 2 per cent of the commercial bank deposits in that market. Bank is located on the extreme western edge of the market and, as a result, a major portion of its service area lies outside the market.2 Applicant’s smaller subsidiary bank (deposits of $37 million) is located in the city of W inchester, 14 miles southeast of Gore, and is the third largest banking organization in the Winchester banking market with about 22 per cent of the total market deposits. Upon consummation of the proposal, Applicant’s rank in the market would remain unchanged, but its market share would increase to 24 per cent, ’ The W inchester banking market is in the northwestern part of Virginia and consists o f the city o f W inchester, Frederick County, and Clarke County. 2Applicant estim ates that approxim ately 45 per cent of Bank’s total deposits is derived from residents of W est V ir ginia. 298 FEDERAL RESERVE BULLETIN □ APRIL 1974 the largest banking organization in the market holds about 42 per cent of the deposits in the market. While it appears that there is some slight overlap in the service areas of Bank and Appli cant’s subsidiary bank in Winchester, the rela tively smaller dollar volume of deposits which each obtains from the service area of the other indicates that there is no significant existing com petition between them. Furthermore, on the basis of its geographic location in the market as well as its conservative 55-year financial history, it appears that Bank has not been and is not now an aggressive competitor to the other banking organizations in the market. Approval herein will immediately reduce the number of banking alter natives from five to four, but it will not raise significant barriers to entry by other organizations not now in the market, and it appears likely that additional competitors can be expected to enter the market in the near future. Accordingly, from the above facts and others of record, the Board con cludes that consummation of the proposed acqui sition would not eliminate significant existing competition nor foreclose the development of sig nificant potential competition in any relevant area. The financial condition and managerial re sources of Applicant and its banking subsidiaries are regarded as satisfactory, particularly in view of Applicant’s commitment to inject additional equity capital into its two banking subsidiaries. Bank’s financial condition is satisfactory. As noted above, Bank has not been an active competitor in the relevant market— for exam ple, its current loan-to-deposit ratio is 32 per cent and 60 per cent of its total assets are comprised of U .S. Treasury securities. Affiliation with Applicant should strengthen Bank’s management and should result in Bank becoming a more viable competitor in the market through the introduction of an expanded lending program, thereby benefiting the local resi dents. Moreover, Applicant will be in a position to assist Bank in establishing and expanding trust, auditing, and computer services. A lso, Applicant intends to have Bank establish branches in areas of Frederick County not now served by its W in chester subsidiary and this should be of benefit to the residents of those areas of the County where there are presently no banking offices. Accord ingly, considerations relating to the banking fac tors and the convenience and needs of the communites to be served lend weight for approval of the application. It is the Board’s judgment that the proposed acquisition would be in the public interest and that the application should be ap proved. On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made (a) before the thir tieth calendar day follow ing the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Richmond pursuant to delegated authority. By order of the Board of Governors, effective March 25, 1974. V oting for this action: C h airm a n B urns and G overnors M itch ell, B rim m e r, S heehan, B u ch er, H o llan d , and W allich. (Signed) [s e a l] B. F e l d b e r g , Secretary of the Board. C h ester D. H. BALDW IN COM PANY, CINCINNATI, OHIO O rder and A p p r o v in g D e n y in g A c q u is it io n A c q u is it io n of O ne B ank A nother B ank of D. H. Baldwin Company, Cincinnati, Ohio, a bank holding company within the meaning of the Bank Holding Company Act, has applied, in sep arate applications, for the Board’s approval under § 3(a)(3) of the Act (12 U .S .C . 1842(a)(3)) to acquire directly a majority of the voting shares of Peoples Bank of Arapahoe County, Aurora, Colorado ( “ Peoples-Arapahoe” ), and to acquire indirectly a majority of the voting shares of Peoples Bank & Trust Company, Aurora, C olo rado ( “ Peoples-Aurora” ), through the direct ac quisition under § 3(a)(5) of the Act of all the voting shares in Midway Investment Corporation, Aurora, Colorado ( “ M idw ay” ). Midway is a one bank holding company owning approximately 83 per cent of the voting shares of Peoples-Aurora and also operates a general insurance agency; Midway has agreed to dispose of all its assets except for shares of Peoples-Aurora prior to its acquisition by Applicant. Notice of the applications, affording opportunity for interested perosns to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and the Board has considered the applications and all comments received in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). LAW DEPARTMENT Applicant controls 10 banks with combined de posits of approximately $530 million, representing 8.7 per cent of the total commercial bank deposits in Colorado, and ranks as the fourth largest bank ing organization in the State. (Except as otherwise indicated, all banking data are as of June 30, 1973 and reflect formations and acquisitions approved by the Board through December 31, 1973.) The acquisition of Peoples-Arapahoe (deposits of $7.6 million) and Peoples-Aurora (deposits of $34.3 million) ( “ Subject Banks” ) would increase Ap plicant’s total deposits to approximately $572 m il lion, or 9.4 per cent of the total commercial bank deposits in the State, and would not significantly increase the concentration of banking resources in Colorado. Applicant, through its two subsidiary banks in the Denver banking market,1 Central Bank and Trust Company, Denver ( “ Central Bank” ) (de posits of $344.1 m illion), and North Denver Bank, Denver (deposits of $27 m illion), is the fourth largest banking organization in the market with aggregate deposits of $371.1 million, representing 10.2 per cent of the total market deposits. Central Bank and North Denver Bank, combined, control 10.3 per cent of IPC deposits of $100,000 or less as of December 1972. Applicant’s acquisition of subject banks would serve to further concentrate the Denver market by increasing Applicant’s share of total market deposits from 10.2 per cent to 11.3 per cent and increase its share of IPC deposits of less than $100,000 from 10.3 per cent to 11.6 per cent of area deposits. Subject banks are both located in Aurora, ap proximately six miles from the central business district of Denver wherein Central .Bank is situ ated. Peoples-Aurora is the second largest of fif teen banks in its primary service area,2 controlling approximately 15 per cent of area deposits; Peoples-Arapahoe is the twelfth largest with 3.3 per cent of those deposits. Together, they represent the largest independent group in the local area. Subject banks have an affiliate relationship in that both are commonly owned by an individual who controls more than 75 per cent of the voting shares 'T he D enver banking market is approximated by Denver, A dam s, Arapahoe and Jefferson C ounties and a portion of Boulder County including the city o f Broomfield. 2The primary service area for Peoples-Aurora includes Aurora and a certain portion w esterly into Denver County. The primary service area o f Peoples-A rapahoe lies entirely within the service area o f Peoples-Aurora except it does not include the area northwest o f Peoples-Aurora. H ow ever, for all practical purposes, the primary service areas of subject banks are considered identical. 299 of Peoples-Arapahoe and 100 per cent of a onebank holding company (Midway) which owns ap proximately 83 per cent of the voting shares of Peoples-Aurora; also, both banks have three directors in common. Because of this affiliate relationship, subject banks do not presently com pete with each other. Central Bank’s primary service area overlaps to a significant degree with that of subject banks and it appears that significant competition exists be tween them for area deposits and loans. Applicant estimates that $31.2 million of total IPC deposits and $26.3 million in IPC deposits of less than $100,000 were derived by Central Bank from the primary service area of subject banks. This repre sents 15.9 per cent and 13.3 per cent, respectively, of all IPC deposits ($196 million) held by com mercial banks located in subject banks’ service area. By comparison, Central Bank’s total IPC deposits ($31.2 million) are almost equal to the combined IPC deposits held by subject banks ($32 million). In addition, Applicant estimates that $35.3 million of Central Bank’s total loans are derived from the service area of subject banks, representing 30 per cent of the total loans held by all commercial banks in this service area. As the banks proposed to be acquired hold nearly 60 per cent of their loans in commercial and non-residential real estate, it appears that significant direct competition exists between Applicant and subject banks in acquiring such loans in this service area. The elimination of this existing competition con stitutes an adverse factor weighing against ap proval of subject applications. Furthermore, the Aurora service area appears to be one of the most econom ically dynamic areas in Denver. The physical development and ec o nomic conditions in the area imply strong overall growth. For exam ple, the 1970 population of Aurora was 7 5 ,0 0 0 , an increase of 54 per cent over the 1960 figure. Moreover, present population of the area is estimated at 107,000, representing an additional increase of 43 per cent. It appears likely that Applicant could expand into this area in the reasonably near future absent the subject acquisitions. Given these factors and others of record, the Board concludes that consummation of the proposed acquisitions would eliminate the likelihood of Applicant’s de novo expansion into the area and constitute an adverse effect on in creased future competition. Applicant’s nonbank financial subsidiary, Em pire Savings Building and Loan Association ( “ Empire” ), Denver, Colorado (assets of $305.2 300 FEDERAL RESERVE BULLETIN □ APRIL 1974 million as of December 31, 1972), has nine branch offices in Denver, two of which are located on the boundary of subject bank service area. The record indicates that no significant degree of com petition exists between Empire and subject banks in the origination of mortgage loans, and similarly, little significant competition presently exists for time and savings deposits. Applicant must divest its interest in Empire by December 31, 1980 unless the Board approves retention of such interest prior to that date. Thus, it appears unlikely that any significant future competition between them will be eliminated through consummation herein. As enumerated above, it is the Board’s judg ment that Applicant’s acquisition of subject banks would have an adverse effect on competition and that these competitive considerations require de nial of the applications unless the anticompetitive effects of the proposals are clearly outweighed in the public interest by the probable effect of the transactions in meeting the convenience and needs of the community to be served. The financial condition of Applicant, its subsid iaries and subject banks is satisfactory in view of Applicant’s commitment to inject additional equity capital into certain of its banks including PeoplesArapahoe. Managerial considerations relating to Applicant and its subsidiaries are satisfactory and future prospects for all are favorable. There is no evidence indicating that the major needs of the Aurora service area are not being adequately served by existing organizations. However, al though financial and managerial considerations and those considerations relating to the convenience and needs of the community to be served are consistent with approval, they do not outweigh the adverse competitive effects of the proposal as it relates to the acquisition of both subject banks. It is the Board’s judgment, therefore, that con summation of the acquisition of both banks would not be in the public interest. On the other hand, the Board does not regard Applicant’s application to acquire Peoples-Arapa hoe in a similar light. Based on data heretofore furnished and other facts of record, approval of Applicant’s application to acquire Peoples-Arapa hoe and denial of Applicant’s application to ac quire Peoples-Aurora would have a pro-competi tive effect in the service area. The existing affilia tion between subject banks (the largest inde pendent group in the area) would be terminated; Peoples-Aurora would remain as a strong com pet itor; and it appears reasonable to anticipate that Peoples-Arapahoe would become an effective competitor in its service area by utilizing the resources of Applicant. A lso, affiliation with Ap plicant will enable Peoples-Arapahoe to draw upon Applicant’s managerial talent and thus strengthen its own management which appears at this time to lack sufficient depth. In addition, Applicant will assist Peoples-Arapahoe in its internal operations and in meeting both its present and future building needs. Accordingly, it is the Board’s judgment that with respect to the application to acquire PeoplesArapahoe, considerations relating to the conven ience and needs of the community to be served outweigh any anticompetitive effects of this ac quisition and that this proposed transaction would be in the public interest and should be approved. On the basis of the record, the application to acquire Peoples-Aurora is denied for the reasons summarized above. On the basis of the record, the application to acquire Peoples-Arapahoe is approved for the rea sons summarized above. The transaction shall not be made (a) before the thirtieth calendar day fol lowing the effective date of this Order or (b) later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of Kansas City pursuant to delegated au thority. By order of the Board of Governors, effective March 29, 1974. D enial o f acq u isitio n o f P eoples B ank & T ru st C o m p an y , A u ro ra, C o lo rad o . V oting for this action: C hairm an B urns and G overnors M itc h ell, B rim m e r, S h eeh an , B u ch er, and H olland. A bsent and not voting: G o v e rn o r W allich. A pproval of acq u isitio n o f P eoples B ank o f A rapahoe C o u n ty , A u ro ra , C o lo rad o . V oting for this action: C hairm an B urns and G o v e rn o rs M itc h ell, S h e e h an , B u ch er, and H olland. V oting against this action: G o v e rn o r B rim m er. A bsent and not voting: G o v e rn o r W allich . (Signed) [s e a l] D is s e n t in g B. F e l d b e r g , Secretary of the Board. C h e ster S ta t em e n t of G o v e r n o r B r im m e r I would deny the application by D. H. Baldwin Company to acquire Peoples Bank of Arapahoe County, Aurora, Colorado ( “ Peoples-Arapahoe” ). My views with respect to the expansion of D. H. Baldwin Company as a multibank holding company while it remains a manufacturing con glomerate has been set forth in my dissenting 301 LAW DEPARTMENT statements to two recent Board Orders1 and a Board Determination.2 I have held consistently, and it bears repeating, that the opportunities for holding companies to engage in nonbanking ac tivities authorized by Congress through the 1970 Amendments to the Bank Holding Company Act do not give Applicant the privilege to expand as a multibank holding company while retaining siz able nonbanking interests. I continue to believe that the history of the Act reflects the intention of Congress to keep the business of banking sepa rate from other commercial endeavors and, ac cordingly, Applicant should be required to make a decision whether it wants to be a bank holding company or whether it would prefer to be in the manufacturing business. Inasmuch as approval of the Peoples-Arapahoe application permits the fur ther expansion of Applicant as a multibank holding company contrary to Congressional intent, I would deny this application. OLD KENT FINANCIAL CORPORATION, GRAND RAPIDS, MICHIGAN O rder D e n y in g M erger of B ank H o ld in g C o m p a n ie s Old Kent Financial Corporation, Grand Rapids, Michigan ( “ Old Kent” ), a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval under § 3(a)(5) of the Act (12 U .S .C . 1842(a)(5)) to merge with Century Financial Corporation of Michigan, Saginaw, Michigan ( “ Century Finan cial” ), under the charter and title of Old Kent. Notice of the application, affording opportunity for interested persons to submit comments and view s, has been given in accordance with § 3(b) of the Act. The time for filing comments and views has expired, and none has been timely received. The Board has considered the application in light of the factors set forth in § 3(c) of the Act (12 U .S .C . 1842(c)). Old Kent controls four banks with aggregate deposits of $774.7 m illion, representing 3 per cent of deposits held by commercial banks in Michigan, and is the sixth largest banking organization in 'Board Order o f D ecem ber 5, 1973 w herein A pplicant was permitted to acquire four banks in Colorado (1 9 7 4 Federal Reserve B u l l e t i n 4 0); and Board Order o f Septem ber 28, 1973 wherein A pplicant was permitted to acquire five banks in Colorado (1973 Federal Reserve B u l l e t i n 7 5 2 ). 2 Board Determ ination o f June 14, 1973 w herein all of A pplicant’s activities relating to the m usical instrument busi ness were accorded indefinite grandfather privileges (1973 Federal R eserve B u l l e t i n 536). the State.1 Century Financial is the sixteenth larg est banking organization in the State and controls one bank with deposits of about $240 million, representing 0 .9 per cent of deposits in commercial banks in the State. Upon consummation of the proposed merger, Old Kent would control 3.9 per cent of total commercial bank deposits in the State and would rank as the fifth largest banking organi zation in Michigan. Old Kent’s lead bank, Old Kent Bank and Trust Company (deposits of $647.3 million) is the larg est banking organization in the Grand Rapids banking market, with 49.3 per cent of total market deposits, and is more than twice the size of the second largest banking organization which con trols 2 2.6 per cent of deposits in that market.2 In the past year Old Kent has shown an interest in expanding into other banking markets in the State. In August, Old Kent consummated a proposed acquisition of a bank in Cadillac, M ichigan,3 and has recently consummated significant acquisitions in the Holland and Fremont banking markets as w ell.4 It seems likely that this organization, one of the major bank holding companies in Michigan, will continue an aggressive policy of expansion by reason of its capability and incentive to enter those banking markets in Michigan which appear most attractive. Century Financial’s sole subsidiary bank, the Second National Bank of Saginaw ( “ Bank” ) ,5 is the largest of six banking organizations in the Saginaw banking market, with 4 9 .9 per cent of total market deposits. Bank is nearly twice as large as the next largest bank in its market. In terms of IPC demand deposits in accounts under $20,000 ’ State banking data are as of June 30, 1973, and reflect holding com pany form ations and acquisitions approved through D ecem ber 31, 1973. 2 Banking data for the Grand Rapids and Saginaw banking markets are as of June 30 , 1972. ;,See Board’s Order dated June 2 7 , 1973, approving the application of Old Kent Financial Corporation, Grand R apids, M ichigan, to acquire the First National Bank of C adillac, C adillac, M ichigan. 4See B oard’s Order dated October 12, 1973, approving the application of Old Kent Financial Corporation, Grand Rapids, M ichigan, to acquire the successor by merger to The Peoples State Bank o f Holland, H olland, M ichigan. An application by Old Kent Financial Corporation, Grand Rapids, M ichigan, to acquire Fremont Bank and Trust, Fremont, M ichigan, was approved by the Reserve Bank o f C hicago on Septem ber 12, 1973, acting under delegated authority. 5Century Financial becam e a bank holding com pany on January 22, 1973, through the acquisition o f Bank. Century Financial has not engaged in any activities other than the operation and control of Bank; therefore, the significance of this proposed merger is the acquisition o f all the voting shares (less directors’ qualifying shares) o f Bank. 302 FEDERAL RESERVE BULLETIN □ APRIL 1974 Bank controls 54.1 per cent of market deposits; and in terms of IPC deposits in accounts over $100,000 Bank controls 61.4 per cent of the mar ket total (see Table follow ing). The market is highly concentrated, with the two largest banking organizations controlling 78.4 per cent of market deposits. The second largest banking organization in the market is currently limited to one office and is prohibited from further branching,6 and the remaining four banking organizations control de posits ranging from 2.8 to 8.7 per cent of total market deposits. Acquisition of Bank by Old Kent through the proposed merger would tend to solid ify Bank’s leading position in the Saginaw banking market. On the other hand, there is a probability that a trend towards deconcentration would result should Old Kent enter the Saginaw area either de novo or through the acquisition of a foothold bank. In the Board’s judgment, a trend towards decon centration would be in the public interest by offer ing the promise of more vigorous competition within the Saginaw market. Applicant’s recent record of expansion indicates that it may be viewed as one of the most likely entrants into the Saginaw banking market, one of the six major banking markets in M ichigan.7 This market is considered attractive for new entry rela tive to the other major markets. While the popula tion of the City of Saginaw has decreased, the population of the market area increased approxi mately 14 per cent for the period 1960-70, relative to a State increase of 13 per cent. The deposits per banking office ratio is $17.5 million relative to $15.3 million for the State; and the population per banking office ratio is 7,480 relative to the ratio of 5,340 for the State. Furthermore, there would appear to be a number of smaller banks in the market that may be available for acquisition. On the basis of the facts of record, including the facts that the Saginaw banking market is concen trated, that Applicant is a likely potential entrant into the market, and that opportunities exist for de novo or foothold entry, the Board concludes that consummation of the proposed merger would have a substantially adverse effect on potential competition in the Saginaw banking market. The Board is also concerned with the effect that consummation of this proposed merger would have in eliminating Century Financial as a large inde pendent which, whenever its management be comes so inclined, would seem capable of an choring a regional holding company system. As previously discussed, Old Kent is presently the largest banking organization in the Grand Rapids banking market and has control of a significant share of deposits in two other banking markets also located in western Michigan. Thus, in addi tion to eliminating Old Kent as a potential entrant into the Saginaw banking market, consummation of the proposed merger would present the addi tional adverse factor of eliminating Century Fi nancial as a possible entrant into those areas in which Old Kent presently com petes, or into those areas in which Old Kent is likely to expand in the future. Finally, such a market extension merger, as proposed here, will knit together bank ing organizations that are each dominant in their own local markets and further solidify each firm’s position in a major market in Michigan. On the basis of the foregoing and all other facts in the record, the Board concludes that consum mation of Applicant’s proposal would have sub stantially adverse effects on competition, and unless such anticompetitive effects are clearly out weighed in the public interest by the probable effect of the transaction in meeting the conven ience and needs of the communities to be served, the application should be denied. The financial condition and managerial re sources and future prospects of Old Kent and its subsidiary banks appear satisfactory. The financial condition and managerial resources and future prospects of Century Financial and Bank are also considered satisfactory. Thus, banking factors are consistent with approval but provide no significant support for such action. Old Kent proposes to assist Bank in agricultural lending, minority lending, mortgage lending, in ternational services, computer services and trust services. While these improved services lend some weight toward approval, most of these innovations may be expected to be made by Bank in any event, and the Board does not consider these convenience and needs considerations sufficient to outweigh the anticompetitive effects of the proposed merger. It is the Board’s judgment that consummation of the proposed acquisition would not be in the public interest and that the application should be denied. <5The Board approved the acquisition o f V alley National Bank, Saginaw , M ichigan, by M ichigan National Corporation, Bloom field H ills, M ichigan, on October 18, 1973. This acqui sition w ould permit M ichigan National to expand through de novo branching. H ow ever, consum m ation o f the acquisition is enjoined pending the outcom e o f a suit filed by the Depart ment of Justice. 7The six major banking markets in M ichigan include the Grand Rapids, Saginaw , Detroit, Flint, K alam azoo, and the Lansing banking markets. 303 LAW DEPARTMENT On the basis of the record, the application is denied for the reasons summarized above. By order of the Board of Governors, effective March 5, 1974. V oting for this a ction: C h airm an B urns and G overnors B rim m er, B ucher, and H olland. V oting a gainst this action: G overnors M itchell and S h eeh an . A b sent and not voting: G ov ern o r D aane. (Signed) C h ester B . F e ld b e r g , Secretary of the Board. [s e a l] SAGINAW BANKING MARKET1 k in arket Banking Organization Total D eposits A m ount Per cent ($ millions) 1 2 3 4 5 6 Century Financial Corporation, Sag inaw Michigan National Corp.,2 Lansing Frankenmuth State Bank, Frankenmuth Valley National Bank, Saginaw First State Bank, Saginaw Community State Bank, St. Charles TOTAL IPC D em and D eposits $ 20,000 or less A m ount Per cent ($ millions) Total IPC D eposits $1 0 0 ,0 0 0 or over A m ount Per cern ($ millions) 218.5 124.5 49.9 28.5 28.1 10.4 54.1 20.0 30.4 16.4 61.4 33.1 37.9 30.4 14.2 12.1 8.7 6.9 3.2 2.8 4.5 4.2 2.9 1.8 8.7 8.1 5.6 3.5 2.2 0.2 0.3 0.0 4.4 0.4 0.6 0.0 437.6 100.0 51.9 100.0 49.5 100.0 'Summary of Deposits June 30, 1972. 2Totai organization deposits $2.2 billion. D is s e n t in g S t a t e m e n t o f G o v e r n o r M it c h e l l This case should have been, in my opinion, another occasion for an expression of Board judg ment regarding Michigan banking structure com parable with the pro-competitive posture taken in two earlier cases. The first defined the status of the Michigan National Corporation in several Michigan markets (See the Board’s Order approv ing the application of Michigan National Corpora tion, Lansing, Michigan, to become a bank hold ing company through acquisition of the following five Michigan banks: Michigan National Bank, Lansing; Michigan Bank, N .A ., Detroit; Livonia National Bank, Livonia; Troy National Bank, Troy; and Oakland National Bank, Southfield. 58 Federal Reserve B u l l e t i n 804), and the second released restraints against its competitive effec tiveness in certain of those markets. (See the Board’s Order approving the application of M ich igan National Corporation, Bloomfield Hills, Michigan, to acquire First National Bank of East Lansing, East Lansing; Central Bank, National Association, Grand Rapids; Valley National Bank of Saginaw, Saginaw; and First National Bank of W yom ing, W yoming; all located in Michigan. 59 Federal Reserve B u l l e t i n 819.) While the instant case is an outstanding example of the judgmental difficulties involved in weighing the influences of undue concentration against in creased competitive effectiveness and responsive ness to community needs, it calls for a more positive solution than continuation of the status quo. The decision is important not only for cus tomers of Saginaw banks but also for the im plica tion it has involving customers in other similarly situated Michigan SM SA ’s. Neither approval nor denial is an optimal solu tion to the problem— that solution would involve, in my opinion, approval conditioned on a spin-off of some of Second National’s facilities. Absent that choice, I believe community needs and bank ing structure developments would be better served by approval than denial. My reasons have to do with the characteristics of M ichigan’s banking structure as well as those of the Applicant and Bank. Michigan is one of our major industrial States, ranking fifth in terms of value added by manufac ture. As a banking State it ranks seventh with 4 .4 per cent of total U .S . deposits— almost exactly its share of U .S. population. There are 317 (as of September 1973) banking organizations serving the State of Michigan. About half of them are located in 11 S M SA ’s. Many of those outside of these areas are community banks in towns where the deposit potential will not support more than one bank. Thus, the problem of banking structure in Michigan is that of balancing considerations of competition, concentration and operating com pe tence in these 11 SM SA ’s. Michigan has been a limited branching State 304 FEDERAL RESERVE BULLETIN □ APRIL 1974 since 1945; the present law permits offices to be opened within 25 miles of the home office. Just within the past three years follow ing the clarifi cation of the legal status of holding companies under Michigan statutes, several newly formed bank holding companies have acquired or are in the process of acquiring other banks or organizing de novo banks in promising markets (see Attach ment A). Thus, Michigan several years after the enactment of the bank holding company legislation is now follow ing the line of development in bank ing structure which has already taken place or is in process in States like New York, New Jersey, Virginia, Alabama, Florida, Missouri, Texas, Tennessee, Colorado, and several other States in the East, South, and Midwest. The veto power given by Congress to the Board over the use of the holding company device to further corporate interests by merger or expansion identifies the considerations the Board should take into account in its approval or disapproval of a particular application. These considerations are public interest goals which are presumed to be attained through the promotion of a competitive structure and the avoidance of undue concentra tion. But the public interest also requires a judg ment of the quality of bank managements and ownerships and their capacity and will to compete by enriching services to the public and reducing the cost of such services. Since considerations of scale affect efficiency of banking operations, and letting bank failures weed out incompetents is a whimsical alternative, it follow s that every pro posal for acquisition must entail a judgment, im plied or expressed, as to the ability of specific competitors in a given market to respond to com munity needs as w ell as to considerations of safety and soundness. I believe the evaluation of these considerations in the instant case is far more urgent than my colleagues appear to believe. And this judgment is reinforced by the obvious fact that banking organizations in Michigan have just recently em barked upon a program of expansion via acquisi tion and de novo entry that w ill significantly mod ify the banking structure in the industrial portion of the State. This movement holds the promise of providing stronger banks, and banks more responsive to community needs, both because of the efficiencies that can arise out of holding com pany operations, due to larger scale, and the ability of effective competitors, such as Old Kent, to absorb and infuse a more competitive spirit in less effective institutions. There is, of course, always the danger that such an expansion can reduce competition because it may increase concentration. The weighing of the pros and cons in specific cases is therefore a difficult judgment. The portion of Michigan primarily affected by the bank holding company movement is that con tained in 11 abutting metropolitan areas stretching out from Detroit west to Muskegon and north to Bay City. It is significant from the standpoint of undue concentration and com petitiveness that these SM SA ’s abut and are closely linked by convenient transport and media, particularly tele vision coverage. In seven instances the distances from central cities in one SM SA to the central city in another is 36 miles or less, in five cases between 36 and 50, and in three cases between 50 and 67 m iles.1 Thus, these markets are closely-linked— not isolated. As a result, the availability of non-local alternatives has greater practicality, and competition in pricing and service standards can spread with minimal friction. The structure in the Detroit SM SA is a special case and would not likely be affected by any resolution of the instant case. But the other 10 SM SA ’s are sufficiently similar in banking struc ture to be influenced by policy implications of this decision. By the standards of practice prevailing in the nation several Michigan banking markets are too heavily concentrated. The accompanying table (Attachment B) shows market shares as conven tionally calculated for the five largest banks in each Michigan SM SA. It needs to be recognized that these shares are based on the assumption that all deposits are indigenous to the SM SA, an assump tion that does not apply to the greater part of interbank deposits nor to many large-denomination C D ’s nor to some part of time deposits of State and local governments. However, the smaller the SMSA and the smaller the bank, the less important these qualifications becom e. Bearing in mind these limitations, the concen tration ratios for Michigan banks are relatively high. For the lead bank the modal value is about 40 per cent; for two banks about 70; and for three about 85 per cent. As a crude comparative stand ard, the modal value for lead banks in one-hundred SM SA ’s in other industrial States in the M idwest, East and South is about 30 per cent. On the basis of such evidence, I do not take issue with the view of the majority that there is undue concentration in Saginaw— in fact, I would extend that judgment to certain other Michigan LAW DEPARTMENT S M SA ’s. Nonetheless I am concerned with the fragility and subjective character of many judg ments on undue concentration. Economic analysis, so far as I am aware, has yet to demonstrate what level of concentration in a given banking market indicates optimum, m axi mum or minimum levels so far as the public interest is concerned. Commonly, judgment-con ditioning adjectives based on intuitive judgments are used to excite various degrees of public interest approval or disapproval. More objective ap proaches are possible. For example, I believe it could be readily demonstrated that splintering a market of $200-300 million of deposits into a dozen equal shares would deprive the community concerned of certain types of banking services that would be available if the largest bank had $50-100 million of deposits simply because of the dif ference in service and operating capability between small and medium size banks. Concentration ratios may also be analyzed in terms of comparative practice, by State and size of SMSA; this approach is hopeful, but clearly affected by historical attitudes toward branching constraints. Where banks have enjoyed home o f fice protection and State laws with respect to expanding outside a given area (city or county), certain banks have tended to become overly dom i nant at some point in their history simply because entrepreneurs were working off their corporate drive. This seems to have been the case in M ichi gan where branching limitations have, in fact, fostered the growth of dominant institutions. I differ with the majority’s choice of alternatives for two reasons. As earlier stated, Saginaw is now an isolated area. It is close to Flint and very close to Bay City and thus is exposed to competitive 'D istances betw een central cities o f abutting S M S A ’s in M ichigan: 67 m iles D etroit................... ..........to Flint 36 to Ann Arbor 47 F lin t....................... ........... to “ 32 to Saginaw 45 “ to Lansing 60 “ L ansing................. ..........to Ann Arbor 34 to Jackson 43 to Battle Cr. 50 Gr. R a p id s......... ........... to K alam azoo 65 to Lansing 30 to M uskegon 305 forces in both areas as well as to Midland. These locational considerations dilute the validity of any conclusions drawn on the assumption that the banking market is completely confined to the Sa ginaw SM SA. Secondly, I believe there is a difference in the quality of banking services that Old Kent would offer and those that would be available from S ec ond National. I base that judgment on the recent operating records of the two banks and the fact that the record shows that the Second National owners sought the sale of their property to Old Kent. Moreover, the premium involved in this case is modest, reflecting, among other factors, p ossi bly the owners’ appraisal of growth prospects in Saginaw, the problems involved in extending operations into Midland and Bay City and the real possibility of more effective competition from Michigan National. The record before the Board does not, of course, disclose the views of sellers or buyers except as it can be inferred from the facts of the transaction. To me, these inferences all lead to the conclusion that the competitor who is a buyer is ordinarily better prepared to innovate and extend services than the competitor who is a seller. The users of banking services in Saginaw would gain by ap proval of the proposal. The majority asserts that other possibilities exist. There are other possible buyers for Second National but I see no advantage to substituting any of the four multi-billion dollar banks in Detroit nor bank holding companies in near-by Flint which are about the same size as Old Kent. In fact, given the standards the majority has applied to Old Kent, the realistic alternatives for a take-over of Second National probably do not exist. to Bay City 14 m iles to Jackson to Battle Cr. to Kalam azoo 39 30 30 FEDERAL RESERVE BULLETIN □ APRIL 1974 306 The following table indicates that of the nine multi-bank holding companies operating in the State’s 11 SM SA ’s all except two have confined their operations to the areas in which their lead banks are located. Only one of the remaining seven (the Applicant) has an application or has announced plans to expand into another SM SA. Thus, Michigan National, following a long-standing tradition, and Northern States Bancorporation are the only holding companies to establish beachheads or substantial market positions in more than one SM SA. HOLDING COMPANIES IN MICHIGAN THAT ARE OR HAVE PROPOSED TO BECOME MULTI-BANK HOLDING COMPANIES Banking O rganization National Detroit Corporation Banking S ubsidiaries National Bank of Detroit June 73 Total D eposits D ecem ber 73 N um ber of Offices Detroit ($ millions) 4,569 107 Detroit 4,569 107 0 0 0 0 22 17 1 1 4 1 Bloomfield Hills 2,528 113 Lansing Detroit Southfield Lironia Troy Saginaw Grand Rapids Wyoming East Lansing Dearborn Flint Kalamazoo 1,294 823 104 97 87 46 42 19 16 0 0 0 31 33 8 8 9 6 9 4 3 1 1 0 Location A pplication s Filed National Bank of Dearborn (de novo) Dearborn A nnounced National Bank of Troy (de novo) National Bank of Port Huron (de novo) First National Bank of Howell Grand Valley National Bank Michigan National Corporation Troy Port Huron Howell Grandville Banking S ubsidiaries Michigan National Bank Michigan National of Detroit Michigan National-Oakland Michigan National Bank-West Metro Michigan National-North Metro Valley National Bank1 Central Bank NA1 First National Bank of Wyoming’ First National Bank of East Lansing1 Greenfield National Bank (de novo) Michigan National Bank-Mid-Michigan (de novo) Western Michigan National Bank (de novo) A pplication s Filed None A nnounced National Bank of Traverse City (de novo) Detroit Bank Corporation Traverse City 0 0 Detroit 2,221 84 Detroit 2,221 84 0 0 0 0 Detroit 2,194 73 Detroit Livonia 2,194 0 72 1 13 2 Detroit 839 50 Detroit Lansing Marquette Lake City Rochester Troy Grand Rapids 607 151 35 20 15 11 0 31 7 4 4 2 2 0 Banking Subsidiaries Detroit Bank & Trust Company A pplication Filed None A nnounced Detroit Bank—Livonia (de novo) Detroit Bank—Troy (de novo) Manufacturer’s National Corporation Livonia Troy Banking Subsidiaries Manufacturer’s National Bank Manufacturer’s Bank of Livonia (de novo) A pplication s Filed Saline Saline Savings Bank A nnounced None Northern States Bancorporation Banking S ubsidiaries City National Bank Bank of Lansing Union National Bank & Trust First National Bank of Lake City National Bank of Rochester First Citizens Bank Grand Rapids Bank, NA (de novo) A pplication s Filed First National Bank of Plymouth (de novo) Plymouth ‘Approved by the Board, but challenged by Department of Justice. LAW DEPARTMENT 307 HOLDING COMPANIES IN MICHIGAN THAT ARE OR HAVE PROPOSED TO BECOME MULTI-BANK HOLDING COMPANIES—CONT'D Banking Organization Location June 73 Total D eposits ($ m illions) D ecem ber 73 N um ber of Offices Announced None Old Kent Financial Corporation Grand Rapids 775 55 Grand Rapids Holland Cadillac Fremont 688 55 17 15 46 7 1 1 Saginaw 240 16 St. Joseph Kentwood Grandville Wyoming 0 0 0 0 0 0 0 0 Kalamazoo 424 43 Kalamazoo Holland Calumet Cheybogan Menominee Deerfield Stambaugh Moline 315 39 20 19 13 8 6 4 29 2 3 3 2 1 2 1 Sault Ste. Marie 21 ^ Banking Subsidiaries Old Kent Bank & Trust Company Peoples State Bank First Bank of Cadillac Fremont Bank & Trust Company A pplication s Filed Second National Bank of Saginaw A nnounced Old Old Old Old Kent Kent Kent Kent Bank Bank Bank Bank of of of of S. Joseph (de novo) Kentwood (de novo) Grandville (de novo) Wyoming (de novo) First National Financial Corporation Banking S ubsidiaries First National Bank & Trust of Michigan First National Bank of Holland Merchants & Miners Bank Cheybogan Bank Commercial Bank of Menominee Deerfield State Bank Commercial Bank of Stambaugh Moline State Bank A pplication Filed First National Bank of Sault Ste. Marie Announced None American National Holding Company Banking S ubsidiaries American National Bank & Trust Company of Michigan American National Bank in Portage American Bank of Three Rivers, NA Niles National Bank & Trust Company American National Bank (de novo) American National Bank (de novo) American National Bank of Western Michigan (de novo) Kalamazoo Portage Three Rivers Niles Battle Creek South Haven 17 3 2 1 1 1 Allegan A pplication s Filed None A nnounced American National Bank of Norton Shores (de novo) American Bankcorporation 0 0 Lansing 211 16 Lansing Charlotte Grand Ledge 211 0 0 15 Muskegon Banking S ubsidiaries American Bank & Trust Company American Bank of Charlotte (de novo) American Bank of Grand Ledge (de novo) 0 1 A pplication Filed None A nnounced State Bank of Perry 1 Perry Pacesetter Financial Corporation 16 Grand Haven Banking S ubsidiaries Traverse City State Bank Security First Bank & Trust Company 86 Traverse City Grand Haven 61 A pplication s Filed None A nnounced Owosso Savings Bank West Michigan Financial Corporation Owosso 85 Cadillac 80 10 Cadillac 80 10 Banking S ubsidiaries Cadillac State Bank A pplication s Filed First National Bank of Evart Announced None Evart 6 FEDERAL RESERVE BULLETIN □ APRIL 1974 308 CONCENTRATION RATIOS IN MICHIGAN SMSA’s. JUNE 30. 1973' Market Shares SMSA Bay City Population 117 Number banks 5 Total deposits (mill.) 256 Bk. Org. Total deposits Demand IPC 1st 2 3 5 70 91 96 100 71 94 97 74 95 98 55 73 88 100 100 100 49 68 78 89 57 73 77 90 Savings State & local Battle Creek 179 11 401 1st 2 3 5 51 73 80 90 47 71 79 89 Saginaw 220 8 527 1st 2 3 5 46 70 83 92 48 74 85 90 47 68 83 94 45 74 86 95 Jackson 143 8 333 1st 43 2 86 3 5 92 99 47 89 95 98 40 82 92 97 46 87 94 97 Flint 536 11 1319 1st 2 3 5 41 74 86 94 40 74 85 94 40 76 85 94 48 76 94 98 Kalamazoo-Portage 258 10 612 1st 2 3 5 40 67 84 92 36 71 85 92 43 69 84 95 44 67 87 93 Grand Rapids 539 19 1720 1st 2 3 5 40 60 74 82 39 58 75 83 Muskegon 175 7 381 1st 2 3 5 38 65 86 96 37 64 85 94 Lansing 424 19 1095 1st 2 3 5 36 55 69 79 33 66 72 82 Detroit 4431 63 14947 1st 2 3 5 31 46 60 71 34 49 66 76 22 38 51 64 29 35 45 59 Ann Arbor 234 11 553 1st 2 3 5 30 56 69 87 33 62 75 90 26 54 64 84 34 45 66 95 43 61 70 80 40 64 88 97 32 55 66 77 36 54 78 85 31 72 87 98 52 61 74 83 ‘Adapted from Sum m ary o f D eposits in A ll C om m ercial an d M utual S avings Banks, June 30, 1973, Federal Deposit Insurance Corporation. LAW DEPARTMENT D is s e n t in g 309 S ta t em e n t of G overnor S h eehan In my opinion, consummation of the proposal would have no adverse effects on potential com petition either in the Saginaw banking market or in any other area of the State. Furthermore, sig nificant public benefits would result from the ex pertise that Applicant would make available to Bank. While the acquisition might eliminate the possi bility of competition developing in the future be tween Old Kent’s subsidiaries and Bank, I do not believe the development of such competition in the absence of the acquisition to be at all probable. In my opinion, the problems involved in de novo entry are sufficiently difficult so as to make it rather unlikely that Old Kent would enter this market in such a manner. This conclusion is bolstered by the fact that Saginaw does not appear to be a particularly attractive market for de novo entry due primarily to the declining population of the City of Saginaw over the past decade. The majority, in addition to finding de novo entry likely, also finds that there are a number of smaller banks in the market which would be available for acquisi tion. However, it is apparent that Old Kent would need to enter the market through the City of Saginaw in order to have an effective entry. Of the smaller banks in the market, only one has its offices concentrated in the city. There is no ev i dence in the record concerning the availability of this bank for acquisition and, inasmuch as the possibilities for an effective entry into Saginaw are limited, I cannot view Old Kent as a likely entrant absent the present proposal. The majority further concludes that the proposed acquisition would eliminate Century Financial as a large independent which appears capable of anchoring a regional holding company system. However, on the basis of Bank’s history, as well as the fact that Century Financial has not used its holding company status to expand either in banking or nonbanking activities, it appears that Century Financial lacks the desire to lead a multi bank holding company, whether regional or State wide. On the basis of the above, I conclude that consummation of the proposal would not eliminate potential competition between Century Financial and Old Kent. While finding no significant anticompetitive e f fects to the proposal, I believe it would result in significant public benefits. Old Kent is only onethird the size of the State’s fourth largest banking organization and if the proposal were approved would remain much smaller. The proposed acqui sition would allow Old Kent to enter another major market and would enable it to compete more effectively against those much larger leading banking organizations in Michigan through the expansion of its base of operations. Therefore, the proposed acquisition would have procompetitive effects on a Statewide basis. In addition, affiliation with Old Kent would allow Second National Bank to offer improved services, particularly trust ser vices, minority lending, mortgage lending and commercial credit services. For the foregoing reasons, I conclude that there are significant benefits to the public to be derived from the proposal and no adverse competitive effects. Accordingly, I would approve this appli cation. ORDER UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT THE ADAIR CORPORATION, ADAIR, IOWA O r d e r D e n y in g F o r m a t io n o f B a n k H o l d in g C om pany The Adair Corporation, Adair, Iowa, has ap plied 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 com pany through the acquisition of 97 per cent of the voting shares of Exchange State Bank ( “ Bank” ), Adair, Iowa. At the same time, Applicant has applied for the Board’s approval under § 4(c)(8) of the Act (12 U .S .C . 1843(c)(8)) and § 225.4(b)(2) of the Board’s Regulation Y to continue to engage in insurance agency activities in a community with a population of less than 5,000 persons. Notice of the applications, affording opportunity for interested persons to submit comments and view s, was published on December 17, 1973 (38 Federal Register, 35352, 35353) 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, and the considerations specified in § 4(c)(8) of the Act. Applicant presently conducts general insurance agency activities in Adair, Iowa, a town of ap proximately 750 people. Bank has deposits of $6.6 m illion,1 and is the smallest of 7 banks in the ’ Banking data are as o f June 30, 1973. 310 FEDERAL RESERVE BULLETIN □ APRIL 1974 relevant banking market,2 controlling 7.4 per cent of the total deposits in commercial banks in the market. The purpose of the proposed transaction is to effect a transfer of the ownership of Bank from individuals to a corporation owned by the same individuals with no change in Bank’s man agement or operations. The principals of Applicant also own shares in several other bank holding companies and banks, including the Anita State Bank, Anita, Iowa ( “ Anita Bank” ), which is located 7 miles from Bank and is Bank’s nearest competitor. Anita Bank is the third largest bank in the market controlling about 10 per cent of deposits therein. Consummation of the proposal would have adverse effects on existing and poten tial com petition, to the extent that it would facili tate maintenance of the existing ties between these two banks. As it has indicated on previous occasions, the Board believes that a holding company should be a source of financial strength for its subsidiary bank(s) and every proposed acquisition or forma tion is closely examined with this consideration in mind. The future prospects of Applicant are primarily dependent upon the financial resources of Bank. Bank’s capital to total assets ratio has declined significantly under current management of Bank. Despite Bank’s need for additional capi tal, principals of Bank, who are also the owners of Applicant, have derived large management fees and cash dividends from Bank. The Iowa State Banking Department, in order to safeguard Bank’s resources, has required that any future dividends must first be authorized by it. Obviously, any such limitation on Bank’s dividends could impair Ap plicant’s ability to service the debt it would assume incident to the proposed transaction. The Board has considered Bank’s present con dition and declining capital position under current ownership. The past policies of principals of Ap plicant regarding the withdrawal from Bank of large management fees, makes it likely that Ap plicant would not have the necessary financial flexibility to meet its annual debt servicing re quirements without adversely affecting the capital position of Bank. The above factors strongly sug gest that the future financial requirements of Ap plicant could place an undue strain on Bank and thus impair Bank’s ability to be a viable banking organization in meeting the banking needs of the communities which it serves. Such considerations lend weight toward denial of the application. The Board notes that principals of Applicant already control or have significant interests in several other banks. The principals have received large management and directors’ fees and liberal dividends from some of these other banks, result ing in the declining capital condition of such banks. These precedents lend support to the view that the capital position of Bank could be adversely affected upon approval of this proposal. Under the above circumstances and on the basis of other facts of record, considerations relating to the financial condition, managerial policies and future prospects of Applicant and Bank lend weight for denial of the application. The Board does not sanction the use of a holding company structure to perpetuate management practices that will in due course impair the financial condition of the bank to be acquired. Such action would not be consistent with the standards of § 3(c) of the Act nor would it serve the public interest. On the basis of all the facts in the record, it is the Board’s judgment that the financial condition of Bank and management practices of principals of Applicant would be inconsistent with the stand ards set forth in § 3(c) of the Act. Accordingly, the Board concludes that consummation of the proposal would not be in the public interest, and that the application should be denied.3 By order of the Board of Governors, effective March 20, 1974. 2The market area is approximated by the upper half o f Cass County and portions o f Audubon, Adair and Guthrie counties. D enial of A pplicant’s § 3(a)(1) application renders moot Board action on the accom panying § 4(c)(8) application. V oting for this action: C hairm an B urns and G overnors M itchell, S h eeh an , B ucher, and H olland. A bsent and not voting: G o vernors B rim m er and W allich. [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the Board. ORDERS UNDER SECTION 4 OF BANK HOLDING COMPANY ACT COLONIAL BANCORP, INC., W ATERBURY, CONNECTICUT O r d e r A p p r o v in g A c q u isit io n o f P o l ic y A d v a n c in g C o r p . Colonial Bancorp, Inc., Waterbury, Connecti cut, a bank holding company within the meaning of the Bank Holding Company Act, has applied 311 LAW DEPARTMENT for the Board’s approval, under section 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regula tion Y, to acquire all of the voting shares of Policy Advancing Corp., Watertown, New York ( “ Pol ic y ” ), a company that engages in the activity of making extensions of credit to individuals and corporations to finance the payment of casualty, liability, and other insurance premiums. Such ac tivity has been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly published (38 Federal Register 35353). The time for filing comments and views has expired, and none has been timely received. Applicant is the seventh largest banking organi zation in Connecticut and controls one subsidiary bank with deposits of approximately $278.6 m il lio n ,1 representing approximately 4.4 per cent of total commercial bank deposits in the State. Policy (assets of $5.9 m illion, as of June 30, 1973) presently operates in 10 cities2 and engages in the financing of casualty, liability, and other insurance premiums for individuals and corporations. Appli cant’s subsidiary bank is engaged to a very limited extent in insurance premium financing through its Waterbury offices. Policy does not presently derive any business from the Waterbury area. Accord ingly, it appears that consummation of the pro posal would not eliminate any significant existing competition between Applicant and Policy. Fur thermore, it does not appear likely that a signifi cant amount of competition would develop in the future, since P olicy’s present owners have indi cated their intention to discontinue insurance pre mium financing as engaged in by Policy, and since Applicant’s subsidiary bank is only nominally en gaged in this activity and is not likely to signifi cantly increase its present volume of business. The Board concludes, therefore, that competitive con siderations are consistent with approval of the application. Applicant has stated its intention to expand the operations of Policy into other geographic areas and thereby provide an additional competitor in these new areas. In addition, Applicant will pro vide more efficient service to Policy’s customers through the introduction of an electronic data pro cessing system. There is no evidence in the record indicating that consummation of the proposed ac 'AJJ banking data are as o f June 30, 1973. 2The 10 cities are located in four States— N ew York, Penn sylvania, O hio, and C onnecticut. quisition would result in undue concentration of resources, unfair competition, conflicts of interest, unsound banking practices, or other adverse e f fects on the public interest. In its consideration of this application, the Board has examined the covenant not to compete which was executed in connection with the proposal. The Board finds that the provisions of this covenant are reasonable in duration, scope, and geographic area and are con sistent with the public interest. Based upon the foregoing and other consid erations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) is favorable. Accordingly, the ap plication is hereby approved. This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s au thority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and pur poses of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. The transaction shall be made not later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Boston. By order of the Board of Governors, effective March 1, 1974. V oting for this a ction: C hairm an B urns and G overnors M itchell, D aane, S h eeh an , B ucher, and H olland. V oting against this action: G o v ern o r B rim m er. (Signed) [s e a l] B. F e l d b e r g , Secretary of the Board. C h e ster D is s e n t in g S t a t e m e n t o f G overnor B r im m e r I would deny the application by Colonial Ban corp to acquire Policy Advancing Corp. My deci sion is based upon the existence of a covenant not to compete which was executed between Ap plicant and the corporation which presently owns Policy. The effect of this covenant is to preclude the possibility of the selling corporation undertak ing to provide an alternative source of insurance premium financing in any geographic area in which Policy is presently doing business for a period of three years from the date of consummation of the acquisition. The majority has presented no e v i dence to show that such covenants are in the public FEDERAL RESERVE BULLETIN □ APRIL 1974 312 interest. For reasons stated more fully in my dis sents to the application of Orbanco, Inc., to ac quire Far West Security Company (59 Federal Reserve B u l l e t i n 368-369 (1973)), and the ap plication of CBT Corporation to acquire General Discount Corporation (59 Federal Reserve B u l l e t i n 471 (1973)), I am convinced that such covenants do not serve to promote competition and should not receive the sanction of the Board. I would deny this application. DEPOSITORS CORPORATION, A U G U STA , MAINE O r d e r A p p r o v in g A c q u isit io n o f F ir e s t o n e F in a n c ia l C o r p o r a t io n Depositors Corporation, Augusta, Maine, a bank holding company within the meaning of the Bank Holding Company Act, 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 Firestone Financial Corporation ( “ Firestone” ), Chestnut Hill, Massachusetts, a company that engages in the activities of commercial financing and financ ing second mortgages. Such activities have been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly published (38 Federal Register 29638). The time for filing comments and views has expired, and none has been timely received. Applicant, the largest banking organization in Maine, controls six banks with deposits of ap proximately $266 million representing 16.2 per cent of the total deposits in commercial banks in that State.1 Firestone, a Massachusetts corporation with total assets of $3.5 million as of May 31, 1973, is principally engaged in the financing of restau rant, bakery, laundry, vending, and industrial equipment. As of May 31, 1973, Firestone had outstanding loans of around $3 million; of that amount, approximately 75 per cent represents commercial loans, with the remainder being sec ond mortgages. Firestone engages in commercial lending primarily in eastern Massachusetts, which encompasses the Boston area, and in which market ’ All banking data are as o f June 30, 1973, and reflect bank holding com pany formations and acquisitions approved by the Board through D ecem ber 3 1 , 1973. it competes with a number of large national com mercial finance firms. Neither Applicant nor any of its subsidiaries is engaged in commercial lend ing in Firestone’s market area other than to a very limited degree. Applicant and its subsidiaries do not engage in making second mortgage loans. Accordingly, no significant existing competition would be eliminated in either commercial financ ing or the origination of second mortgage loans upon consummation of the subject proposal. There are sufficient potential entrants into these product markets so that the elimination of Applicant would not have any adverse effects on future competition upon approval of this application. In its consideration of this application, the Board has considered a post-employment covenant contained in the employment agreement entered into between Firestone and the two principals and sole stockholders of Firestone. The covenant pro vides that the principals will not engage or partici pate in any manner in the financing business of the type engaged in by Firestone for a period of five years after termination of employment. The record indicates that the principals (who are also the founders of Firestone) during their employment term will have complete managerial control and decision-making authority with respect to Fire stone’s business, and, by the very nature of the business, these principals will have substantial contact with Firestone’s customers. Accordingly, the Board finds that the covenant’s provisions are reasonable in duration, scope, and geographic area and are consistent with the public interest. There is no evidence in the record indicating that consummation of the proposed transaction would result in any undue concentration of re sources, unfair competition, conflicts of interest, unsound banking practices or other adverse effects on the public interest. Applicant’s greater access to financial resources may assure Firestone of more ready access to funds and enable it to become a more effective competitor; thus, competition with affiliates of larger regional and national commer cial finance firms is likely to be stimulated. Based upon the. foregoing and other consid erations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) is favorable. Firestone is presently holding some realty for sale which the Board regards as an impermissible activity for bank holding companies. Thus, Board approval of the proposal is granted subject to the condition that Applicant divest itself of the tract of land at the 313 LAW DEPARTMENT earliest practicable time, but in no event later than two years from the date of this Order. Accord ingly, Applicant’s proposal to acquire Firestone is hereby approved subject to the above condition. The order herein is also subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s authority to require such modifi cation or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. The transaction shall be made not later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Boston. By order of the Board of Governors, effective March 11, 1974. V o tin g fo r this action: C h airm an B urns and G ov ern o rs M itc h ell, S h e e h an , B u ch er, and H o llan d . A b sen t and not voting: G o v ern o rs B rim m er and W allich . [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the Board. FIRST VIRGINIA BANKSHARES CORPORA TION, FALLS CHURCH, VIRGINIA O rder A p p r o v in g R e t e n t io n of A r l in g t o n M o rtg a g e C o m pa n y First Virginia Bankshares Corporation, Falls Church, Virginia, a bank holding company within the meaning of the Bank Holding Company Act, 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 retain all of the voting shares of Arlington Mortgage Company, Falls Church, Virginia ( “ Company” ), a company that engages in the following activities: origination and acqui sition of both FHA and VA-insured and conven tional real estate loans (including construction loans), and servicing of all types of real estate loans. Such activities have been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1) and (3)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly published (39 Federal Register 1487). The time for filing comments and views has expired, and none has been timely received. Applicant directly acquired Company in 1968 under authority of § 4(c)(5) of the A ct.1 Applicant seeks permission through this application to operate Company under the broader authority contained in § 4(c)(8) of the Act. In considering a proposal for the retention of shares in a non banking company under § 4(c)(8) of the Act, the Board must find that the proposed retention of the nonbanking company could reasonably be ex pected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects such as an undue concentration of re sources, decreased or unfair competition, conflicts of interests, or unsound banking practices. Applicant, the sixth largest banking organi zation in Virginia, controls 23 banks with aggre gate deposits of $761 million, representing 6 .7 per cent of total deposits in commercial banks in Virginia.2 Applicant’s nonbanking subsidiaries engage in activities including mortgage lending, consumer finance, leasing, advisor to real estate investment trust, the sale of insurance, and holding title to bank premises. Company (assets of $16 million as of December 31, 1972) is headquartered in Falls Church, Vir ginia, a suburb of W ashington, D .C ., and ranked as the 135th largest mortgage company in the United States based on a mortgage servicing v ol ume of $212 million as of June 30, 1 9 7 3 . The principal competitive effects of Applicant’s pro posal are limited to the W ashington, D .C ., SM SA. In 1968, Applicant’s lead bank, First Virginia Bank, Falls Church, Virginia ( “ Bank” ), origi nated a total of approximately $ 4.6 million of 1-4 family residential mortgage loans and $4.7 million 1S ection 4 (c)(5) o f the A ct g enerally p erm its a bank holding c o m pany to acq u ire, w ithout B oard a p p ro v a l, “ shares w hich are o f the kinds and am o u n ts e lig ib le for in v estm en t by national banking a ssociations under the pro v isio n s of section 5136 of the R evised S ta tu te s .” 2 All banking data are as of June 30, 1973, adjusted to reflect h olding c o m pany acqu isitio n s and fo rm atio n s ap p ro v ed through F ebruary 28, 1974. ;5S ince its acquisition by A p p lic a n t, C o m p an y has e sta b lished additional offices d e n o v o in each of the follow ing: V irginia B each, V irginia; O rla n d o , F lorida; and B irm ingham , A labam a. H ow ever, these offices serve only as loan production offices, soliciting loans and p rep arin g c re d it, a p p ra isa l, and feasibility inform ation for the o rig in atio n s at the C o m p a n y ’s principal office in Falls C hurch. T he applicatio n herein c o n tem plates conv ertin g these three offices to full service m ortgage lending offices. 314 FEDERAL RESERVE BULLETIN □ APRIL 1974 of mortgage loans on multi-family and non-residential property in the Washington, D .C ., SMSA; during the same period and within the same area, Company originated about $11 million of 1-4 family residential mortgage loans and $15 million of mortgage loans on multi-family and non-residential property. Comparable figures for 1972 in dicate that Bank and Company originated approx imately $18 million and $13 million of 1-4 family residential mortgage loans, and approximately $2 million and $71 million of mortgage loans on multi-family and non-residential property, respec tively.4 In view of the large number of mortgage lenders in the relevant market (over 100), the relatively small share of the residential mortgage market that Applicant and Company hold com bined (under 2 per cent), and the fact that the mortgage loan market for multi-family and non residential property is national in scope, it appears that no meaningful existing competition was elim inated, nor was substantial competition foreclosed, in the Washington, D .C . area through Applicant’s acquisition of Company. First Virginia Mortgage Company ( “ Mort gage” ), a subsidiary of Bank, offers FHA and VA-insured mortgage loans and 90-95 per cent residential financing to customers of Applicant’s subsidiary banks operating outside the Washing ton, D .C ., SM SA. However, the amount of such loans originated by Mortgage during 1972 amounted to only about $900,000. First Advisors, Inc. ( “ First A dvisors” ), a direct subsidiary of Applicant, acts as advisor to Mortgage and a publicly-owned real estate investment trust. First Advisors also originates, as exclusive agent for the trust, commercial real estate and construction loans and, as a result, there is a slight overlap in this type of loan activity between First Advisors and Company; but the amount of direct com peti tion appears to be insignificant, particularly in view of the fact that the market for such loans is national in scope. On the basis of the foregoing and other facts of record, the Board concludes that the proposal would have no significant adverse effects on existing or potential competition in any relevant area. There is no evidence in the record to indicate that the proposed retention of Company by Appli cant would lead to an undue concentration of resources, unfair competition, conflicts of inter ests, unsound banking practices, or other adverse effects. On the contrary, the affiliation of Company with Applicant has resulted in benefits to the public in the form of expanded services and increased lending capabilities since Applicant has provided Company with substantial capital thereby increas ing the volume of Company’s loan originations. Moreover, approval herein will enable Company to convert its Virginia Beach, Orlando, and Bir mingham loan production offices to full service status, thus resulting in greater convenience to the public and more efficient processing of loan appli cations. These public benefits lend weight for approval herein. Based on the foregoing and other considerations reflected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) is favorable. Accordingly, the application is hereby approved. This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. By order of the Board of Governors, effective March 13, 1974. 4 A p p lican t has tw o o th er su b sid iary banks in the W a sh in g to n , D .C ., SM SA (co m b in ed d ep o sits o f $46 m illio n ), and in 1972 they had in the ag g reg ate ab o u t $6 m illion o f resid ential m o rtg ag e loans in the m ark et area. V oting for this action: C hairm an B urns and G overnors M itchell, B rim m er, S h e e h an , B u ch er, H ollan d , and W allich. [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the Board. INDUSTRIAL NATIONAL CORPORATION, PROVIDENCE, RHODE ISLAND O rder A p p r o v in g A c q u is it io n of M ortgage A s s o c ia t e s , In c . Industrial National Corporation, Providence, Rhode Island, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regu lation Y, to acquire the assets of Mortgage A sso ciates, Inc., M ilwaukee, W isconsin ( “ M A I” ), a company that engages in the follow ing activities: (1) origination and sale of residential and com mercial mortgages; (2) origination and sale of LAW DEPARTMENT loans for the purchase of mobile homes; (3) con sumer finance; (4) servicing of mortgage loans and mobile home loans; and (5) operation of an insur ance agency with respect to certain types of insur ance. Such activities have been determined by the Board to be closely related to banking (12 CFR 225.4(a) (1), (3), and (9)). MAI is also engaged in real estate development and property manage ment activities. The Board has previously deter mined that such activities are not closely related to banking;1 and Applicant has committed itself to phasing out these activities, if the proposed acquisition is approved. Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly published (38 Federal Register 28115). The time for filing comments and views has expired, and the Board has considered all comments received in the light of the public interest factors set forth in section 4(c)(8) of the Act (12 U .S .C . 1843(c)).2 Applicant, a one bank holding company, con trols Industrial National Bank of Rhode Island, Providence, Rhode Island ( “ Bank” ), the largest commercial bank in Rhode Island, with deposits of approximately $1.3 billion, representing about 56 per cent of total deposits in commercial banks in the State.3 Bank engages in both consumer finance and mortgage banking operations. Bank’s portfolio of $288 million in residential mortgages (as of June 30, 1973) is confined to loans on property in Rhode Island, Connecticut, and Mas sachusetts. Applicant also controls several non banking subsidiaries which engage in the follow ing activities: real estate investment and develop ment4 mortgage banking, data processing, invest ment advisor, personal property leasing, factoring, and consumer finance. Applicant’s consumer fi nance subsidiary operates in Georgia, Florida, North Carolina, South Carolina, and Tennessee; and Applicant’s mortgage banking subsidiary makes only interim and short-term real estate loans for its own account. The primary business activity of MAI is mort gage banking. It originates, sells, and services 'S e e : 1972 B u i . i . h iin 4 2 9 ; and 12 C FR 2 2 5 .1 2 6 (d ) and (e). - T he N ational A ssociation of Insurance A g en ts, In c ., and related parties tiled a petition on July 31, 1973, o b jectin g to approval of the ap p licatio n and req u estin g a hearing be held on this ap p licatio n . S u b se q u en tly , the o b jectio n s and related request for a hearing w ere w ith d raw n . ;iAll b anking d ata are as of Ju n e 30, 1973. ‘ A pp lican t relies upon section 4(c)( 12) o f the A ct to co n tin u e to en g ag e in this activity. 315 both residential and commercial mortgages. M A I’s residential mortgages are derived from 12 States,5 while its commercial mortgages are derived from three States.6 Of more than $219 million in mort gages originated by MAI in fiscal 1973, approxi mately 71 per cent were residential mortgages, while the remaining 29 per cent were commercial mortgages. Based on a mortgage servicing portfo lio of about $957 m illion, MAI ranks as the sixteenth largest mortgage banking firm in the United States. MAI is also engaged in consumer finance activities in the States of W isconsin and Illinois, where it has approximately $12 million in consumer loans outstanding. In addition, MAI engages in the origination and servicing of loans on mobile homes; and insurance agency activities with regard to certain types of insurance. As a threshold matter, the Board believes that the acquisition of the 16th largest mortgage bank ing firm in the United States and the 6th largest independent mortgage banking company, deserves special scrutiny to insure that the proposal does not raise concern with respect to the question of undue concentration of resources. The Board has in the past closely examined acquisitions of such size. In the case at hand Applicant’s primary subsidiary, Industrial National Bank of Rhode Island, while having resources of approximately $1.5 billion, ranked only 63rd among commercial banking organizations in the country (as of June 30, 1973). While Applicant is engaged in a number of nonbanking activities such as leasing, factoring, and consumer finance, Applicant is not a substantial factor nationwide in any of these activities. The Board therefore believes that the question of undue concentration of resources need not be accorded significant weight in the case at hand. Although MAI and some of Applicant’s subsid iaries engage in the same activities, all operate in separate geographic markets and there does not appear to be any significant existing competition between them in either their mortgage banking, consumer finance, or mobile home financing activities. Furthermore, it does not appear likely that any significant competition would develop between these institutions in the future due to the distances which separate their respective markets. Accordingly, it is the Board’s judgment that con siderations relating to the competitive aspects of 5A rizona, F lorida, Illinois, Indiana, M ich ig an , M in n eso ta, M issouri, N evada, O k la h o m a , O h io , T e x a s, and W isconsin. (iIllinois, M in n eso ta, and W isconsin. 316 FEDERAL RESERVE BULLETIN □ APRIL 1974 the proposed acquisition are consistent with ap proval of the application. Approval of the proposed acquisition would give MAI access to the financial resources of Applicant, and it is anticipated that such increase in the availability of funds will enable MAI to expand the volume of its mortgage banking activi ties as w ell as broaden the geographic markets it serves. For exam ple, the volume of M A I’s home improvement loans has declined over the past three years from about $25 million to $11 m illion, as the company was unable to obtain funds. A ppli cant proposes to increase this pool of lendable funds by $10 million and, in addition, assist MAI in the origination of over $100 million in loans on mobile homes in the next 15 months. Applicant also proposes to finance M A I’s expansion within the next three years into five geographical markets in which it is not presently represented, including parts of the Southeastern section of the country. It is the Board’s judgment that consummation of the proposed transaction would bring positive benefits to the public and that such benefits out weigh any possible adverse effects. There is no evidence in the record indicating that consummation of the proposed transaction would result in undue concentration of resources, unfair competition, conflicts of interest, unsound banking practices, or other adverse effects. Based upon the foregoing and other considerations re flected in the record, the Board has determined that the balance of the public interest factors the Board is required to consider under § 4(c)(8) is favorable. Accordingly, the application is hereby approved subject to the condition that Applicant terminate M A I’s real estate development and property management activities at the earliest pos sible date, but in no event later than one year from the date of consummation of the proposed acqui sition. This determination is additionally subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s authority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and purposes of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. The transaction shall be made not later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Boston. By order of the Board of Governors, effective March 15, 1974. V oting for this actio n : C hairm an B urns and G overnors B rim m er, S h e e h an , and H olland. A b sent and not voting: G overnors M itc h ell, B u ch er, and W allich. [s e a l] (Signed) T h e o d o r e E. A l l i s o n , Assistant Secretary of the Board. SOUTHERN BANCORPORATION, IN C ., GREENVILLE, SOUTH CAROLINA O r d e r A p p r o v in g A c q u is it io n o f F& I F in a n c e C o m p a n y Southern Bancorporation, Inc., Greenville, South Carolina, a bank holding company within the meaning of the Bank Holding Company Act, has applied for the Board’s approval, under § 4(c)(8) of the Act and § 225.4(b)(2) of the Board’s Regulation Y, to acquire through its wholly-owned subsidiary, World Acceptance Corporation ( “ W orld” ), all of the voting shares of F&I Fi nance Company, Inc., Sherman, Texas ( “ F&I” ) , 1 a company that engages in the activity of making extensions of credit of $100 or less to individuals as a licensed consumer finance lender under the Texas Consumer Credit Code. Such activity has been determined by the Board to be closely related to banking (12 CFR 225.4(a)(1)). Notice of the application, affording opportunity for interested persons to submit comments and views on the public interest factors, has been duly published (38 Federal Register 34836). The time for filing comments and views has expired, and none has been timely received. Applicant controls one bank located in Green ville, South Carolina, which holds total deposits of $118 million. F&I is a consumer finance com pany operating out of an office in Sherman, Texas, and has total assets of $44,000 (as of September 30, 1973). F&I’s operations are limited to Grayson County, Texas, with 85 per cent of the active accounts of F&I originating within a 10-mile ra dius of Sherman. World operates consumer fi nance offices in the States of South Carolina, 1 On D ecem ber 1, 1973, World acquired all of the assets of F&I relying upon the Federal R eserve Bank of R ichm ond’s authorization, pursuant to § 2 6 5 .2 (f)(2 0 )(i) o f the Board’s Rules Regarding D elegation o f A uthority, of the establishm ent by Applicant o f a de novo finance com pany office in Sherman, Texas. W hen inform ed that authorization for the acquisition of F&I was not granted, Applicant took im m ediate steps to divest itself of F&I. 317 LAW DEPARTMENT Georgia, and Texas, but does not presently operate in Sherman, Texas. Accordingly, it does not ap pear that consummation of the proposal would eliminate any significant existing competition be tween Applicant and F&I. Nor would consumma tion of the proposal result in the foreclosure of significant potential competition. Further, no sig nificant adverse competitive effects would appear to result from the proposed acquisition in view of the size of F&I. The Board concludes, there fore, that competitive considerations are consistent with approval of the application. Applicant’s greater financial resources and spe cialized services should enable it to better service the existing customers of F&I and provide them with continued local servicing on their loans. Fur thermore, F&I’s competitive strength should be increased so that it may be a more viable com peti tor. There is no evidence in the record indicating that consummation of the proposed acquisition would result in undue concentration of resources, unfair competition, conflicts of interest, unsound banking practices or other adverse effects on the public interest. Based upon the foregoing and other consid erations reflected in the record, the Board has O R D ER S NOT determined that the balance of the public interest factors the Board is required to consider under section 4(c)(8) is favorable. Accordingly, the ap plication is hereby approved. This determination is subject to the conditions set forth in section 225.4(c) of Regulation Y and to the Board’s au thority to require such modification or termination of the activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance with the provisions and pur poses of the Act and the Board’s regulations and orders issued thereunder, or to prevent evasion thereof. The transaction shall be made not later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Richmond. By order of the Board of Governors, effective March 25, 1974. V oting for this a ction: C hairm an B urns and G overnors B rim m er, S h eeh an , B u ch e r, H o lla n d , and W allich . A bsent and not voting: G ov ern o r M itchell. (Signed) [s e a l] P R IN T E D B. F e l d b e r g , Secretary of the Board. C h ester IN T H I S I S S U E During March 1974, the Board of Governors approved the applications listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D .C . 20551. ORDERS UNDER SECTION 3(a)(1) OF BANK HOLDING COMPANY ACT— APPLICATION FOR FORMATION OF BANK HOLDING COMPANY Applicant Byers State Bankshares, Inc., Byers, Colorado Community Bancorporation, Columbus, Ohio Curry Ban Corporation, Massena, Iowa S&S Investment Company, Odell, Nebraska Bank Byers State Bank, Byers, Colorado Community National Bank, Mount Gilead, Ohio Farmers Savings Bank, M assena, Iowa State Bank of Odell, Odell, Nebraska Effective date 3/20/74 3/6/74 3/15/74 3/1/74 Federal Register citation 39 F.R. 71347 3/27/74 39 F.R. 9865 3/14/74 39 F.R. 11224 3/26/74 39 F.R. 9503 3/11/74 FEDERAL RESERVE BULLETIN □ APRIL 1974 318 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Applicant Alabama Bancorporation, Birmingham, Alabama American Bancorporation, Inc., and Jacob Schmidt Company, both of St. Paul, Minnesota Barnett Banks of Florida, Jacksonville, Florida Barnett Banks of Florida, Inc., Jacksonville, Florida Baystate Corporation, Boston, Massachusetts Bank(s) The City National Bank of Selma, Selma, Alabama First Burnsville State Bank, Burnsville, Minnesota Barnett Bank of Lake Placid, Lake Placid, Florida Barnett Bank of South Orlando, Orlando, Florida The First National Bank of Easthampton, Easthampton, Massa chusetts Colorado National Bankshares, Golden State Bank, Golden, Inc., Denver, Colorado Colorado, and First National Bank of Evergreen, Evergreen, Colorado Hawkeye Bancorporation, American State Bank, Mason City, Iowa Des M oines, Iowa Bank of Commerce, First Abilene Bankshares, Inc., Abilene, Texas Abilene, Texas First National Charter Corporation, Blue Springs Bank, Kansas City, Missouri Blue Springs, Missouri First Tennessee National Corpora Bank of Mt. Juliet, tion, Memphis, Tennessee Mount Juliet, Tennessee First United Bancorporation, Inc., Great Southwest National Bank of Arlington, Arlington, Texas Fort Worth, Texas Saline Savings Bank, Manufacturers National Corpora Saline, Michigan tion, Detroit, Michigan Southeast Banking Corporation, City National Bank of Cocoa, Miami, Florida Cocoa, Florida Southern National Corporation, The Fort Worth National Cor Houston, Texas poration, Fort Worth, Texas The Bank of Sevierville, Third National Corporation, Nashville, Tennessee Sevierville, Tennessee Board action (effective date) 3/22/74 3/15/74 3/1 1/74 3/13/74 3/6/74 Federal Register citation 39 F.R. 12174 4/3/74 39 F.R. 10941 3/22/74 39 F.R. 10187 3/18/74 39 F.R. 10493 3/20/74 39 F.R. 9710 3/13/74 3/25/74 39 F.R. 12175 4 /3/74 3/22/74 39 F.R. 12176 4/3/74 39 F.R. 12176 4/3/74 39 F.R. 12386 4/5 /7 4 39 F.R. 11950 4/1/74 39 F.R. 12286 4/4/74 39 F.R. 11634 3/29/74 39 F.R. 9712 3/13/74 39 F.R. 9866 3/14/74 39 F.R. 10943 3/22/74 3/22/74 3/29/74 3/25/74 3/27/74 3/20/74 3/5/74 3/6/74 3/15/74 ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES Applicant Bank of Virginia Company, Richmond, Virginia Byers State Bankshares, Inc., Byers, Colorado Nonbanking Company (or activity) Cavanagh Leasing Corporation, Richmond, Virginia Byers State Bank, Byers, Colorado Board action (effective date) 3/29/74 3/20/74 Federal Register citation 39 F.R. 12933 4/9 /7 4 39 F.R. 11347 3/27/74 319 LAW DEPARTMENT ORDERS UNDER SECTION 4(c)(8) OF BANK HOLDING COMPANY ACT— APPLICATIONS TO ENGAGE IN NONBANKING ACTIVITIES— Cont. B oard action (effective date) Nonbanking company (or activity) Applicant Landmark Banking Corporation of Florida, Fort Lauderdale, Florida Prairie Home, Inc., Lincoln, Nebraska Southern National Corporation, Lumberton, North Carolina Federal Register citation Willoughby Holin, Inc., Fort Lauderdale, Florida 3 /27/74 39 F.R. 12178 4 /3 /7 4 L. A. Westland Agency, Prairie Home, Nebraska Marvin Greene Mortgage Cor poration, Charlotte, North Carolina 3/8/74 39 F.R. 10190 3/18/74 39 F.R. 9503 3/11/74 3/1/74 ORDERS UNDER BANK MERGER ACT— APPLICATION TO MERGE, CONSOLIDATE, OR ACQUIRE ASSETS Effective date Bank Applicant Bank of Utah, Ogden, Utah Chemung Canal Trust Company, Elmira, New York O R D ER S 3 /15/74 Bank of Ben Lomond, Ogden, Utah Montour National Bank in Montour Falls, Montour Falls, New York IS S U E D BY FED ERA L R ESER V E 3/20/74 Federal Register citation 39 F.R. 1 1222 3/26/74 39 F.R. 11632 3/29/74 BA NK S During February or March 1974, applications were approved by the Federal Reserve Banks under delegated authority as listed below. The orders have been published in the Federal Register, and copies of the orders are available upon request to the Reserve Bank. ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK Applicant Alabama Financial Group, Inc., Birmingham, Alabama Alabama Financial Group, Inc, Birmingham, Alabama Atlanta Bancorporation, Jacksonville, Florida Dominion Bankshares Corporation, Roanoke, Virginia Federal Register citation Reserve Bank Effective date Coosa Valley Bank, Rainbow City, Alabama Atlanta 3 /1/74 The Sand Mountain Bank, Boaz, Alabama Atlanta 3/12/74 39 F.R. 10493 3/20/74 Mid-County Commercial Bank, Largo, Florida Merchants and Farmers Bank, Portsmouth, Virginia Atlanta 2/27/74 39 F.R. 9501 3/1 1/74 3/19/74 39 F.R. 11533 3/29/74 Bank Richmond 39 F.R. 9581 3/12/74 320 FEDERAL RESERVE BULLETIN □ APRIL 1974 ORDERS UNDER SECTION 3(a)(3) OF BANK HOLDING COMPANY ACT— APPLICATIONS FOR ACQUISITION OF BANK— Cont. Applicant First National Corporation, Appleton, W isconsin First National Financial Cor poration, Kalamazoo, Michigan First at Orlando Corporation, Orlando, Florida First at Orlando Corporation, Orlando, Florida Hamilton Bancshares, Inc., Chattanooga, Tennessee Valley of Virginia Bankshares, Inc., Harrisonburg, Virginia Bank The Community Bank, De Pere, W isconsin The First National Bank of Sault Ste. Marie, Sault Ste. Marie, Michigan Citizens National Bank of Naples, Naples, Florida The First American Bank of Pensacola, Pensacola, Florida Citizens State Bank, M cM innville, Tennessee The Farmers Bank of Edinburg, Incorporated, Edinburg, Virginia Reserve Bank Chicago Chicago Atlanta Atlanta Atlanta Richmond Effective date Federal Register citation 3/26/74 39 F.R. 12930 4/9/74 3/4/74 39 F.R. 10189 3/18/74 39 F.R. 10494 3/20/74 3/12/74 39 F.R. 10494 3/20/74 31 \ 174 39 F.R. 9583 3/12/74 3/1/74 39 F.R. 9584 3/12/74 3/8/74 Announcements CHANGES IN BOARD STAFF The Board of Governors of the Federal Reserve System has announced the promotion of John S. Rippey to Assistant to the Board to work on congressional matters, effective April 29, 1974. He succeeds Robert L. Cardon, who has retired from the Board’s staff. The Board has also appointed Donald J. Winn, legislative and administrative aide to Repre sentative Fernand J. St Germain of Rhode Island, to succeed Mr. Rippey as Special Assistant to the Board. Mr. Winn holds bachelor’s and master’s degrees from Boston C ollege and a bachelor of divinity degree from Weston C ollege, Weston, Massachu setts, and he has studied law at Georgetown U ni versity. RULES RELATING TO BANKERS’ ACCEPTANCES The Federal Reserve announced a realignment and a modernization of its rules relating to open market operations in bankers’ acceptances, effective April 1, 1974. No major change in System operations in bank ers’ acceptances is expected to result from this action, which eliminates outdated provisions in the rules and broadens somewhat the scope of bankers’ acceptances eligible for purchase by the Federal Reserve. Bankers’ acceptances are primarily ne gotiable time drafts drawn to finance the interna tional or domestic shipment or storage of goods and are termed “ accepted” when a bank assumes the obligation to make payment at maturity. In companion actions, the Board of Governors rescinded its Regulation B— relating to open mar ket purchases of bills of exchange and accept ances— while the Federal Open Market Commit tee (FOMC) incorporated the major elements of that regulation, with some technical changes, into its rules on the conduct of open market operations. The new rules authorize the Federal Reserve Bank of New York to buy (outright or under repurchase agreement) and sell “ prime” bankers’ acceptances, with maturities of up to 9 months at the time of acceptance, that arise out of: 1. The current shipment of goods between countries or within the United States, or 2. The storage within the United States of goods under contract of sale or expected to move into the channel of trade within a reasonable time and that are secured throughout their life by a ware house receipt or similar document conveying title to the underlying goods. The new rules eliminate the present requirement that banks have in their possession shipping docu ments conveying or securing title at the time they accept drafts covering the shipment of goods within the United States. The removal of this requirement would eliminate a presently existing difference between the documentation required for international and domestic shipment of goods. The amendments also remove dollar exchange bills from the list of acceptances authorized for System purchase, since these instruments are sel dom used; increase from 6 to 9 months the matu rity of acceptances eligible for purchase by the Federal Reserve; and broaden the definition of such acceptances to include those that finance the storage of any goods rather than “ readily market able staples.” In taking this action, the FOMC also instructed the System ’s staff to continue its studies to deter mine whether Federal Reserve open market opera tions in bankers’ acceptances should be expanded to encompass all types of “ prime” acceptances, including finance bills. The Board last year applied a reserve requirement to finance bills. In another action, the Board of Governors an nounced the revocation of its Regulation C entitled “ Acceptances by Member Banks of Drafts or Bills of Exchange.” This regulation was outdated and primarily repeated the provisions of the Federal Reserve Act relating to this area. RULES RELATING TO BANK HOLDING COMPANIES The Board of Governors has revised its rules under which Federal Reserve Banks can approve, on behalf of the Board, certain bank holding company formations, bank acquisitions, and bank mergers. The revised rules also give the Reserve Banks authority to approve the merger or consolidation of bank holding companies, on the basis of criteria similar to those for bank acquisitions by holding companies. 321 322 FEDERAL RESERVE BULLETIN □ APRIL 1974 The Board’s rules regarding delegation of au thority previously had authorized Reserve Banks to approve— on the basis of criteria set forth by the Board— the formation of one-bank holding companies, bank acquisitions by existing bank holding com panies, and bank mergers. Reserve Banks may now approve bank acquisitions by bank holding companies where revenues of the applicant from nonbank activities are as much as 20 per cent of its total operating income, instead of 10 per cent as previously. Second, Reserve Banks may approve the financing of bank holding company formations and mergers and of bank acquisitions by bank holding companies involving debt, with respect to all the holding com pany’s acquisitions, amounting to as much as 20 per cent of the equity capital accounts of the holding company, instead of 10 per cent as previously. A new criterion regarding bank holding com pany formations and mergers, bank acquisitions, and mergers of banks prohibits action under dele gated authority on applications involving a cove nant not to compete. Reserve System under the direction of the Federal Open Market Committee. The Federal Reserve’s reciprocal currency ar rangements are shown in the table below: INCREASE IN SWAP ARRANGEMENTS The Federal Reserve announced on March 26, 1974, that its reciprocal currency “ swap” ar rangement with the Bank of England has been increased by $1 billion, bringing the total of that arrangement to $3 billion. The increase enlarges the System ’s swap net work with 14 central banks and the Bank for International Settlements to $19.98 billion. A swap arrangement is a renewable, short-term facility under which a central bank agrees to ex change on request its own currency for the cur rency of the other party up to a specified amount over a limited period of time. The Federal Reserve swap network was initiated in 1962. In all recip rocal currency arrangements the Federal Reserve Bank of New York acts on behalf of the Federal Institution Millions o f dollars A ustrian N ational B ank of N ational B ank of N ational B ank ................................................ B ank of B elgium ........................................... C a n a d a .................................................................. B ank of D e n m a r k .......................................... E ngland .............................................................. 250 1,000 2 ,0 0 0 250 3 ,0 0 0 B ank of G erm an B ank of B ank of B ank of France ................................................................ F ederal B ank .................................................. Italy ...................................................................... Japan .................................................................. M exico .............................................................. 2 ,0 0 0 2 ,0 0 0 3,0 0 0 2 ,0 0 0 180 N etherlands B ank ............................................................ Bank of N orw ay .............................................................. B ank of Sw eden .............................................................. Sw iss N ational B a n k ......................................................... 500 250 300 1,400 Bank for International Settlem en ts: Sw iss fran cs/d o llars .................................................. O ther European c u rren cies/d o llars ..................... 600 1,250 Total .................................................... 19,980 ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The following banks were admitted to membership in the Federal Reserve System during the period March 16, 1974, through April 15, 1974: Minnesota Apple Valley ............................ First State Bank of Apple Valley Montana Poison ............. First Citizens Bank of Poison Tennessee Chattanooga ............... Commerce Union Bank Chattanooga Virginia Brookneal ...................... First Virginia Bank— South Central Vienna ....................................... Bank of Vienna Industrial Production R e l e a s e d fo r p u b lic a tio n April 15 Industrial production declined an estimated 0.5 per cent in March, following declines of 0.9 and 0.7 per cent in January and February, respectively. The total index at 123.9 per cent of the 1967 average was 0.2 per cent above a year earlier. The decline in March output was centered in nondura ble consumer goods, durable goods materials, and construction products. The January and February data were revised downward by 0.2 and 0.3 per centage point, respectively, because of larger de clines than previously reported in production of construction products and in the automotive sup plying industries. In March, auto assemblies were at an annual rate of 6.6 million units, the same as in February but over one-third below a year earlier. Output of household appliances declined in March, but this was offset by increased production of some other durable consumer goods. Output of non durable consumer goods declined further. Production of business equipment was un changed following a small rise in the revised data for February. March changes in output in the equipment industries were small and offsetting. Production of defense and space equipment con tinued to show little change. Output of durable goods materials declined with cutbacks in production of steel, consumer durable parts, and other durable goods materials. Produc tion of nondurable goods materials rose following a decline in February. IN D U STR IAL PRODUCTION SEASONALLYADJUSTED, RATIOSCALE, 1967=100 1968 Seasonally adjusted I 967 = 100 Industrial production 1968 1970 1972 1! Per cent changes from— Per cent changes, annual rate 1974 Month ago Year ago Q3 Q4 Ql 123.9 121.8 120.1 127.3 126.6 127.5 127.3 - .5 .2 .3 .5 .1 .9 .1 .2 .1 .4 -2 .7 -9 .8 .3 7.3 6.1 3.9 4.3 1.8 - 8.8 6 .6 1 1.2 .9 1.3 3.3 1.2 -4 .0 3.1 8 .0 - 7.6 - 7.2 - 8.0 - 13.2 -2 8 .0 - 7.2 .4 127.8 128.8 127.2 - .4 -1 .2 - .8 -1 .2 -1 .5 2 4.0 6 .9 8. 4 -4 .8 -5 .6 .3 - Mar.' Total ........................................................ Products, total ................................................ Final products ............................................ Consumer goods ................................... Durable goods ................................. Nondurable goods ......................... Business equipment ........................... 125.4 122.6 120.9 129.2 128.4 129.4 126. 1 124.5 122.1 120.5 128.0 126.7 128.6 127.2 Intermediate products ............................. Construction products ....................... Materials ............................................................ 129.3 133.1 129.5 128.3 130.4 128.2 1974 1973 Feb. " "Preliminary. 1972 1974 Jan. ' 'Revised. 1970 F.R. indexes, seasonally adjusted. Latest figures: March. 6 .0 6.8 8.4 'Estimated. 323 A 1 Financial and Business Statistics CO N TEN TS A 3 G U ID E TO TABULAR A 3 S T A T IS T IC A L P R E S E N T A T IO N R ELEA SES: R EFER EN C E U .S . S T A T I S T I C S : A 4 M em ber bank and re s e rv e s , F e d e ra l R e se rv e re la te d A 7 F e d e r a l f u n d s — M a jo r r e s e r v e A 8 R e se rv e B a n k in te re s t ra te s R e se rv e re q u ire m e n ts A 9 A 10 M a x im u m A 11 O pen c ity b a n k s in te r e s t r a te s ; m a rg in re q u ire m e n ts m a rk e t a c c o u n t A 12 F e d e ra l R e s e rv e A 13 B a n k d e b its A 14 M o n e y s to c k A 15 B ank re se rv e s; b an k A 16 C o m m e rc ia l b a n k s , b y c la s s e s A 20 W e e k ly re p o rtin g A 25 B u s in e s s lo a n s o f b a n k s A 26 D em and A 27 L o an s a le s A 27 O pen A 28 In te re s t r a te s A 31 S e c u rity A 32 S to c k A 33 S a v in g s in s titu tio n s A 35 F e d e ra lly s p o n s o r e d A 36 F e d e ra l fin a n c e A 38 U .S . G o v e r n m e n t s e c u r i t i e s A 41 S e c u rity A 44 B u s in e s s fin a n c e A 45 R eal e s ta te A 50 C o n s u m e r c re d it B a n k c re d it, ite m s B anks c re d it banks d e p o s it o w n e rsh ip by ban k s m a rk e t p a p e r m a rk e ts m a rk e t c re d it c re d it a g e n c ie s is s u e s c re d it Continued on next page FEDERAL RESERVE BULLETIN □ APRIL 1974 U .S . S T A T I S T I C S — C o n t i n u e d A 54 In d u s tria l p r o d u c tio n A 56 B u s i n e s s a c tiv ity A 56 C o n s tru c tio n A 58 L a b o r fo rc e , e m p lo y m e n t, a n d A 59 C o n s u m e r p ric e s A 59 W h o le s a le A 60 N a tio n a l p r o d u c t a n d A 62 F lo w u n e m p lo y m e n t p ric e s in c o m e of fu n d s IN T E R N A T IO N A L S T A T IS T IC S : A 64 U .S . b a l a n c e o f p a y m e n t s A 65 F o re ig n tr a d e A 66 U .S . g o l d t r a n s a c t i o n s A 67 U .S . r e s e r v e A 68 In te rn a tio n a l c a p ita l tr a n s a c tio n s o f th e A 83 F o re ig n a s s e t s ; p o s itio n exchange A 84 C e n tra l b a n k A 85 O pen A 86 G o ld A 87 G o ld p r o d u c tio n 88 IM F U n ite d S t a t e s ra te s ra te s m a rk e t ra te s ; a rb itra g e o n T re a s u ry re s e r v e s o f c e n tra l b a n k s a n d TABLES A in t h e P U B L IS H E D N um ber of banks and b ills g o v e rn m e n ts P E R IO D IC A L L Y : b ra n c h e s in o p e r a t i o n on D ecem ber 31, 1973 A 90 S a l e s , r e v e n u e , p ro fits , a n d m a n u fa c tu rin g A 99 IN D E X T O d iv id e n d s o f la rg e c o rp o ra tio n s S T A T IS T IC A L T A B L E S A 3 G u id e t o T a b u la r P r e s e n t a t io n SYMBOLS AND ABBREVIATIONS e E s tim a te d c C o r r e c te d p P r e li m in a r y N .S .A . r R e v ise d rp R e v i s e d p r e lim in a r y I, II, III, IV IP C SM SA A L S U * Q u a r te r s n .e .c . N o t e ls e w h e r e c la s s ifie d A .R . A n n u a l r a te S . A . M o n th ly (o r q u a r te r ly ) fig u r e s a d ju s t e d fo r s e a s o n a l v a r ia tio M o n th ly ( o r q u a r te r ly ) fig u r e s n o t a d ju s t e d fo r s e a s o n a l v a r ia tio n I n d iv i d u a ls , p a r t n e r s h i p s , a n d c o r p o r a tio n s S ta n d a r d m e tr o p o lit a n s ta tis tic a l a re a A s s e ts L i a b ili tie s S o u rc e s o f fu n d s U se s o f fu n d s A m o u n ts in s ig n if ic a n t in te r m s o f th e p a r tic u la r u n it ( e . g . , le s s th a n 5 0 0 ,0 0 0 w h e n th e u n it is m illi o n s ) (1 ) Z e r o , (2 ) n o fig u r e to b e e x p e c te d , o r (3 ) fig u r e d e la y e d GENERAL INFORMATION M in u s s ig n s a re u s e d to in d ic a te (1 ) a d e c r e a s e , (2 ) a n e g a t iv e f ig u r e , o r (3 ) a n o u tflo w . A h e a v y v e r tic a l r u le is u s e d in th e f o ll o w i n g i n s ta n c e s : (1 ) to th e r ig h t (to th e le f t) o f a to ta l w h e n th e c o m p o n e n ts s h o w n to th e r ig h t (le f t) o f it a d d to th a t to ta l ( to t a ls s e p a r a te d b y o r d in a r y r u le s in c lu d e m o r e c o m p o n e n ts th a n th o s e s h o w n ) , (2 ) to th e r ig h t ( to th e le f t) o f ite m s th a t a r e n o t p a r t o f a b a la n c e s h e e t, (3 ) to th e le ft o f m e m o r a n d u m ite m s . “ U .S . G o v t, s e c u r i t i e s ” m a y in c lu d e g u a r a n te e d is s u e s o f U .S . G o v t, a g e n c ie s (th e flo w o f f u n d s fig u re s a ls o in c lu d e n o t f u lly g u a r a n te e d is s u e s ) as w e ll a s d ir e c t o b lig a tio n s o f th e T r e a s u r y . “ S ta te a n d lo c a l g o v t . ” a ls o in c lu d e s m u n ic ip a litie s , s p e c ia l d is tr ic ts , a n d o th e r p o litic a l s u b d iv is i o n s . In s o m e o f th e ta b le s d e ta ils d o n o t a d d to to ta ls b e c a u s e o f r o u n d in g . T h e f o o tn o t e s la b e le d N o t e ( w h ic h a lw a y s a p p e a r la s t) p r o v id e (1 ) th e s o u r c e o r s o u r c e s o f d a ta th a t d o n o t o r ig i n a te in th e S y s te m ; (2 ) n o tic e w h e n fig u r e s a re e s t i m a t e s ; a n d (3 ) in f o r m a tio n o n o th e r c h a r a c te r is tic s o f th e d a ta . TABLES PUBLISHED SEMIANNUALLY OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Sales, revenue, profits and divi dends of large manufacturing corporations ................................ Apr. 1974 Page Feb. 1974 A-98 Feb. 1974 A-99 Annually Bank holding companies: List, Dec. 31, 1971 ................. Banking offices and deposits of group banks, Dec. 31, 1972 Banking and monetary statistics: 1973............................................... Issue Page Banks and branches, number, by class and State ............. Apr. 1974 A-88— A-89 Flow of funds: Assets and liabilities: 1961-72 ............... Sept. 1973 A-71.14— A-71.28 Sept. 1973 A-70— A-71.13 A-90 Semiannually Banking offices: Analysis of changes in number On, and not on, Federal Reserve Par List, number .................. Annually—Continued June 1972 A-98 June 1973 A -102— A -104 Mar. 1974 A-96— A -109 Flows: 1961-72 Income and expenses: Federal Reserve Banks .................Feb. Insured commercial banks ............May Member banks: Calendar year ......................... .....May Income ratios ......................... .....May Operating ratios .................... .....June Stock market credit 1974 1973 A-96— A-97 A-96— A-97 1973 1973 1973 A-96— A -105 A -106— A-l 11 A-96— A -101 Jan. 1974 A -96— A-97 S ta tis tic a l R e le a s e s LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Anticipated schedule of release dates for individual releases Dec. 1973 Page A - 104 BANK RESERVES AND RELATED ITEMS □ APRIL 1974 A 4 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In m illions o f dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities 1 1 otal Bought o u t right Held under repur chase agree ment Loans Float 2 O ther F.R . assets 3 Total 4 Gold stock Special Drawing Rights certificate account Treas ury cur rency o u t stand ing Averages of daily figures 1939—D ec................................. 1941—D ec................................. 1945—D ec................................. 1950—D ec................................. I960—D ec.................................. 2,510 2,219 23,708 20,345 27,248 2,510 2,219 23,708 20,336 27,170 1968—D ec.................................. 1969— D cc.................................. 1970—Dec.................................. 1971—Dec.................................. 1972—D ec.................................. 52,529 57,500 61,688 69,158 71,094 1973—M ar................................. A pr.................................. M ay ................................ J u n e ................................ July................................. A ug................................. Sept................................. Oct................................... N ov................................. D ec.................................. 1974—Jan................................... Feb.................................. M ar.p.............................. 2,612 2,404 24,744 21,606 29,060 17,518 22’759 20,047 22,879 17*954 2,204 1,032 982 1,138 56,610 64,100 66,708 74,255 76,851 10,367 1o ’367 11’ 105 10,132 10,410 400 400 400 6,810 6 841 7,145 7,611 8,293 2,387 2,319 2,247 2,369 3,113 2,566 2,924 2,933 2,763 3,414 839 1,043 960 942 1,180 1,018 889 1,122 1,078 1,079 79,219 80,542 81,889 80,546 83,880 82,445 81,809 83,643 83,755 85,642 10,410 10,410 10,410 10,410 10,410 10,410 10,410 10,933 11,567 11,567 400 400 400 400 400 400 400 400 400 400 8,406 8,444 8,478 8,518 8,538 8,549 8,584 8,613 8,642 8,668 1,044 1,186 1,352 3,385 2,300 1,872 1,258 1,117 960 86,568 85,493 84,999 11,567 11,567 11,567 400 400 400 8,705 8,747 8,767 9 78 8 5 381 142 94 83 170 652 1,117 1,665 52,454 57,295 61,310 68,868 70,790 75 205 378 290 304 765 1,086 321 107 1,049 3,251 3.235 3,570 3,905 3,479 74,019 75,353 76,758 75,355 77,448 76,653 76,073 78,042 78,457 79,701 73,624 74,914 76,205 75,047 76,875 76,475 75,712 77,500 77,937 78,833 395 439 553 308 573 178 361 542 520 868 1,858 1,721 1,786 1,789 2,051 2,143 1,861 1,467 1,399 1,298 80,793 80,801 80,686 80,608 80,551 80,184 185 250 502 2,956 3 ’239 4*322 4 ’ 629 5*396 Week ending— 1974—Jan. 2 ......................... 9 ......................... 16......................... 23......................... 30......................... 80,851 80,880 80,762 80,309 81,088 80,238 80,671 80,690 80,202 80,713 613 209 72 107 375 1,210 776 988 1,182 1,220 4,073 4,399 3,639 3,208 2,149 1,204 1,232 1,211 1,271 1,329 87,499 87,397 86,670 86,036 85,876 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 8,682 8,683 8,691 8,723 8,726 Feb. 6 ......................... 13......................... 20......................... 27......................... 80,407 80,678 81,535 80,577 80,213 80,451 80,953 80,577 194 227 582 998 1,153 1,376 1,251 2,185 2,268 2,314 2,409 1,362 1,462 869 828 85,037 85,645 86,207 85,136 11,567 11,567 11,567 11,567 400 400 400 400 8,731 8,747 8,750 8,756 6 ......................... 13......................... 80,203 80,167 80,813 80,920 80,203 79,767 80,303 80,302 400 510 618 912 983 1,484 1,713 2,010 2,074 1,872 1,722 878 938 961 1,003 84,072 84,246 85,245 85,502 11,567 11,567 11,567 11,567 400 400 400 400 8,758 8,762 8,768 8,772 80,167 80,238 81,791 8 80,167 9 80,238 8 80,483 1,308 961 720 1,821 2,226 2,412 1,583 1,329 958 1,078 84,751 84,397 86,569 11,567 11,567 11,567 400 400 400 8,740 8,775 8,775 M ar. 2 0 p ....................... 27p ....................... End of month 1974—Jan................................... Feb.................................. Mar.*>.............................. Wednesday 1974—Jan. 2 ......................... 9 ......................... 16......................... 23......................... 30......................... 82,641 79,232 81,175 81,251 81,922 8 9 8 8 8 80,667 77,312 80,671 80,501 80,742 1,974 1,920 504 750 1,180 990 2,104 1,234 2,666 1,600 5,871 4,788 4,402 3,133 2,380 1,202 1,444 1,310 1,294 1,373 90,974 87,633 88,229 88,419 87,425 11,567 11,567 11,567 11,567 11,567 400 400 400 400 400 8,677 8,685 8,720 8,723 8,729 Feb. 6 ......................... 13......................... 20......................... 27......................... 79,719 82,300 83,595 80,548 9 8 8 9 77,830 80,712 81,047 80,548 1,889 1,588 2,548 856 2,500 1,061 1,189 2,980 2,016 2,576 2,126 1,469 1,543 790 847 85,093 88,530 88,281 84,779 11,567 11,567 11,567 11,567 400 400 400 400 8,733 8,749 8,753 8 ,756 M ar. 6 ....................... 13......................... 20p ....................... 2 7* ....................... 80,156 81,726 81,461 80,176 8 8 8 9 80,156 79,696 80.331 79,781 2,030 1,130 395 846 1,627 2,162 2,034 3,673 2,509 2,263 2,123 917 1,023 998 1,029 85,657 87,038 87,050 85,492 11,567 11,567 11,567 11,567 400 400 400 400 8,760 8,764 8,769 8,773 1 Includes Federal agency issues held under repurchase agreements as o f Dec. 1, 1966, and Federal agency issues bought outright as o f Sept. 29, industrial loan program was discontinued. For holdings of acceptances on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. 5 Includes certain deposits o f domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in “ O ther F.R . full with Federal Reserve Banks in connection with voluntary participa they were tion by nonmember institutions in the Federal Reserve System’s program of credit restraint. 1959, when Notes continued on opposite page. 1971. 2 Beginning with 1960 reflects a minor change in concept; see Feb. 1961 B u l l e t in , p. 164. 8 Beginning A pr. 16, 1969, “ O ther F .R . assets” and liabilities and cap ital” are shown separately; form erly, netted together and reported as “ O ther F.R . accounts.” 4 Includes industrial loans and acceptances until Aug. 21, APRIL 1974 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions o f dollars) Factors absorbing reserve funds D eposits, other than member bank reserves, with F.R . Banks C ur rency in cir cula tion Treas ury cash hold ings 7,609 10,985 28,452 27,806 33,019 2,402 2,189 2,269 1,290 408 616 592 625 615 522 50.609 53.591 57,013 61,060 66,060 756 656 427 453 350 65,072 66,068 66,726 67.609 68,382 68,394 68.592 68,909 69,927 71,646 Treas ury F o r eign Other F.R . ac counts3 O ther 2,5 Other F.R . lia bilities and capital3 M ember bank reserves With F.R . Banks C ur rency and coin6 Period or date T o tal7 Averages of daily figures 248 292 493 739 1,029 11,473 12,812 16,027 17,391 16,688 -1 ,1 0 5 2,192 2,265 2,287 2,362 22,484 23,071 23,925 25,653 24,830 666 666 652 698 782 838 781 5 752 5 689 5 717 2,530 2,622 2,721 2,732 2,846 2,877 2,848 2,866 2,854 2,942 427 293 311 5 713 5 682 5 699 2,254 2,344 2,170 2,351 3,099 331 544 318 398 494 5 5 5 5 5 349 343 334 344 3,084 3,431 2,844 2,651 306 256 327 260 5 5 5 5 70,577 71,193 71,286 71,117 334 330 337 335 1,927 1,794 1,324 2,317 328 277 300 307 69,880 70,493 71,160 344 332 342 2,844 2,016 1,373 72,457 71,679 71,086 70,380 69,977 330 356 370 368 370 70,393 70,810 70,836 70,572 71,060 71,482 71,343 71,378 2,595 11,473 12,812 16.027 17,391 19,283 . 1939—Dec. . 1941—Dec. . 1945—Dec. . 1950—Dec. . 1960—Dec. 4,737 4,960 5,340 5,676 6,095 27,221 28.031 29,265 31,329 31,353 .1968—Dec. .1969— Dec. .1970— Dec. .1971—Dec. .1972—Dec. 25,848 26,281 26,214 25,776 27.156 27,377 27,509 28,457 28,260 28,352 5,856 5,824 6,007 6,086 6,274 6,296 6,402 6,371 6,383 6,635 31,973 32,277 32,393 32.028 33,542 33,785 34,019 34,912 34,727 35,068 .1973— M ar. .............Apr. .............May .............June .............July .............Aug. .............Sept. .............Oct. .............Nov. .............Dec. 2,904 2,932 2,998 29,396 28,574 28,506 7,192 6,601 6,460 36,655 35,242 35.032 . 1974—Jan. ............ Feb. ............. M ar.p 978 699 706 709 646 2,977 2,776 2,850 2,959 3,059 28,808 29,499 29,719 29,364 28,981 6,781 6,730 7,916 7,179 7,091 35,656 36,296 37,702 36,610 36,139 689 664 682 690 2,947 2,806 2,950 3,031 28,424 28,360 29,102 28,445 6,984 6,921 6,219 6,339 35,475 35,348 35,388 34,851 .Feb. 6 ............13 ............20 ........... 27 5 694 5 714 5 731 s 669 2,942 2,842 2,994 3,093 27,994 27,826 29,009 28,404 6,572 6,855 6,118 6,276 34,633 34,748 35,194 34,747 . M ar. 6 ...........13 ...........20 p ...........27 p 392 542 366 5 657 5 679 5 673 3,101 3,091 3,262 28,241 27,989 30,135 6,984 6,572 6,525 35,292 34,628 36,718 1,985 2,880 1,851 2,898 3,013 309 543 239 713 485 5 5 5 5 5 713 705 650 693 668 2,758 2,777 2,948 3,001 3,103 33,067 29,344 31,772 31,056 30,505 6,781 6,730 7,916 7,179 7,091 39,915 36,141 39,755 38,302 37,663 .1974—Jan. 2 ........................ 9 ....................... 16 ....................... 23 ....................... 30 342 343 335 352 3,119 2,987 2,863 2,337 232 258 342 273 5 5 5 5 740 700 655 767 2,750 2,912 3,014 3,057 28,218 31,236 30,955 28,144 6,984 6,921 6,219 6,339 35,269 38,224 37.241 34,550 .Feb. 6 ...........13 .......... 20 ...........27 341 336 347 338 1,528 1,944 2,079 2,094 282 274 261 355 5 5 5 5 687 737 675 683 2,783 2,945 3,022 3,073 29,703 30,051 30,059 28,312 6,572 6,855 6,118 6,276 36,342 36,973 36,244 34,655 . M ar. 6 .......... 13 .......... 20* ...........27 p 739 1,531 1,247 920 250 353 495 360 1,194 849 1.926 1,449 225 146 145 290 272 458 458 735 728 631 384 414 413 386 346 344 349 622 340 323 3,598 3,471 4,121 2,408 3,375 1,674 792 1,718 1,772 1,892 338 275 330 266 341 300 332 266 522 406 70,962 70,411 71,081 349 342 334 2,488 2,972 1,803 72,470 71,855 71,214 70,581 69,931 331 329 350 363 359 69,935 70,500 70,686 70,438 W eek end in g . 1974—Jan. 2 ..9 .16 .23 .30 End of month . 1974—Jan. .............Feb. .............M ar.» W ednesday 6 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed thereafter. Beginning with Jan . 1963, figures are estim ated except for weekly averages. Beginning Sept. 12, 1968, amount is based on closeof-business figures for reserve period 2 weeks previous to report date. 7 Beginning with week ending Nov. 15, 1972, includes $450 million of reserve deficiencies on which F.R. Banks are allowed to waive penalties for a transition period in connection with bank adaptation to Regulation J as amended effective Nov. 9, 1972. Beginning 1973, allowable deficiencies included are (beginning with first statement week o f quarter): Q l, $279 million; Q2, $172 million; Q3, $112 million; Q4, $84 million. Beginning 1974 Q l, $67 million Q2, $58 million. 8 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. 9 Includes securities loaned—fully secured by U.S. Govt, securities pledged with F.R. Banks. Also reflects securities sold, and scheduled to be bought back, under matched sale/purchase transactions. For other notes see opposite page. AND RELATED ITEMS □ APRIL 1974 RESERVES AND BORROWINGS OF MEMBER BANKS (In m illions o f dollars) member banks Large banks2 Borrowings Reserves New York City City of Chicago Re quired Excess1 6,462 9,422 14,536 16,364 5,011 3,390 1,491 1,027 3 5 334 142 2,611 989 48 125 192 58 540 295 14 8 18,527 22,267 24,915 26,766 27.774 28,993 31,164 31,134 756 452 345 455 257 272 165 219 87 454 238 765 1,086 321 107 1,049 29 41 18 100 56 34 25 -2 0 19 111 40 230 259 25 35 301 4 15 8 15 18 7 1 13 31,682 32,126 32,277 31,970 33,199 33,540 33.775 34,690 34,543 34,806 287 149 59 59 391 243 245 223 182 262 1,858 1,721 1,786 1,788 2,050 2,144 1,861 1,465 1.399 1,298 5 30 77 124 163 147 126 84 41 72 38 -3 5 -6 1 156 34 -6 11 27 -2 3 176 146 110 145 135 109 115 74 180 74 36,419 35,053 34,789 236 189 243 1,044 1,186 1,352 18 17 33 65 51 ^31,723 '31,533 '31,724 '31,576 '336 '25 '248 '88 '1,685 1,491 '2,139 '2,011 34,216 34.374 35,099 34,711 34,777 457 420 -8 0 407 174 1,520 1,353 1,162 1,915 1,455 34,369 34.725 34.726 34,372 257 146 369 66 34,468 34,472 34,892 34,958 Total Sea sonal Excess Borrow ings Borrow ings O ther Excess Borrow ings rowngs 5 1,188 1,303 418 232 1 96 50 3 4 46 29 8 23 13 85 27 4 8 55 100 67 50 90 6 42 -3 5 -4 2 20 228 105 270 479 264 22 429 40 92 80 180 321 28 42 264 —6 8 6 -5 30 -8 24 1 -2 4 43 102 9 12 28 67 53 62 54 28 28 4 -1 1 2 -115 -7 9 -2 8 40 17 -2 0 28 857 828 881 904 855 755 712 589 593 761 723 738 783 711 993 ,227 972 748 598 435 135 87 113 -4 4 -1 9 11 17 18 64 -8 -5 1 34 549 635 689 343 446 486 92 -4 8 56 -4 6 242 178 225 28 43 -2 5 3 1 99 113 104 130 '- 5 0 -1 1 2 '- 5 '- 6 5 '693 '622 '1,076 951 r651 '578 r734 r902 144 131 120 125 119 89 129 -1 5 7 129 -6 9 43 43 26 185 72 7 1 -9 7 29 41 9 58 66 81 138 34 -5 9 61 55 463 536 520 902 472 973 765 558 762 830 1,171 1,521 1,568 1,287 93 80 85 84 101 -9 2 110 -5 6 192 262 224 94 12 61 15 28 -7 29 66 -3 1 384 716 623 541 583 482 706 624 438 -2 8 311 472 1,478 1,303 1,488 1,039 57 45 40 35 167 -1 3 9 137 106 102 163 15 -2 3 29 30 11 11 29 -3 7 + 34 81 889 769 837 676 578 421 488 363 35,268 36,210 37.374 36,693 35,880 388 86 328 -8 3 259 1,210 776 988 1,182 1,220 31 19 20 13 17 80 2 59 -1 1 4 104 140 271 45 183 20 -6 -4 7 16 -1 2 -5 7 141 44 24 -9 6 27 -1 1 0 15 599 174 681 655 733 330 287 262 344 467 35,351 35,054 35,274 34,645 124 294 114 206 998 1,153 1,376 1,251 18 15 20 16 -1 2 3 144 -3 7 70 92 257 14 -2 3 -6 3 -1 7 56 13 34 -3 4 -4 2 -2 4 494 585 711 780 504 420 408 458 34,515 34,632 35,126 34,600 118 116 68 147 912 983 1,484 1,713 19 19 34 44 -8 1 41 -8 6 -8 123 11 333 32 13 -8 1 17 11 66 15 21 1 -8 2 -2 9 -1 7 364 507 680 1,060 414 399 456 600 Sfov. 15, 1972, includes $450 million of . Banks are allowed to waive penalties )n with bank adaptation to Regulation J . Beginning 1973, allowable deficiencies statement week o f quarter): Q l, $279 12 million; Q4 million. Beginning 1974 ;nation o f banks as reserve city banks has been based on size o f bank (net 00 million), as described in the Bulletin hown here as “ Large” and “ All other” Excess -5 3 2 -1 4 parallel the previous “ Reserve city” and “C ountry” cate (hence the series are continuous over time). tively N o t e .—Monthly and weekly data are averages of c the month or week, respectively. Beginning with Jan. estimated except for weekly averages. Borrowings at F.R. Banks: Based on closing figures. Effective Apr. 19, 1963, the Board’s Regulation A, u ing by Federal Reserve Banks, was revised to assist sma to meet the seasonal borrowing needs o f their commur /ith in s are lend- APRIL 1974 a MAJOR RESERVE C ITY BANKS A 7 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions o f dollars, except as noted) Basic reserve position L essReporting banks and week ending— Gross transactions N e t- Excess Borre serves 1 rowings at F.R. Banks Net inter bank Federal funds trans. Related transactions with U.S. G ovt, securities dealers Interbank Federal funds transactions Net transactions Surplus or deficit Per cent of avg. required reserves Pur chases Sales Total tw o-w ay trans actions 2 Pur chases of net buying banks Sales o f net selling banks Loans to dealers3 Bor row ings from dealers4 Net loans Total— 46 banks Feb. 6 ........... 13........... 2 0 ........... 2 7 ........... -5 7 58 39 96 281 497 583 487 14,210 15,936 16.046 15,858 -14,484 -16,375 -16,589 -16,249 93.4 105.3 105.2 107.1 20,196 22,068 22,199 21,748 5,986 6,132 6,153 5,890 5,141 4,745 5,145 5,332 15,055 17,323 17,054 16,415 794 1,387 1,009 558 2,293 2.513 2,260 15,858 036 593 583 2,557 1,657 1,921 1,678 499 Mar. 6 ........... 13........... 2 0 ........... 2 7 ........... 25 18 -1 3 31 292 344 603 684 16,140 16,912 15,129 15.047 -16,408 -17,239 -15,745 -15,699 108.5 112.9 100.8 104.1 22,757 22,605 20,675 21,321 6,617 5,693 5,546 6,274 5,863 5,211 5,123 5,371 16,895 17,394 15,552 15,951 754 482 423 904 2.514 2,186 1,811 1,575 589 667 643 682 1,925 1,519 1,168 893 8 in New York City Feb. 6 ........... 13........... 2 0 ........... 2 7 ........... -8 5 59 31 104 92 257 3,982 5,624 5,500 5,446 -4 ,0 6 7 -5 ,6 5 6 -5 ,7 2 6 -5,341 65.5 90.6 88.5 87.9 5,099 6,456 6,729 6,352 1,117 832 1,229 906 1,117 832 1,229 906 3,982 5,624 5,500 5,446 1,512 1,672 1,376 1,504 327 342 332 317 1,185 1,330 1,043 1,187 Mar. 6 ........... 13........... 2 0 ........... 27 ........... -1 8 46 -7 15 123 11 330 32 5,771 5,885 3,967 4,385 -5,911 -5 ,8 5 0 -4 ,3 0 4 -4 ,4 0 2 97.3 94.6 67.7 73.2 6,850 6,739 5,166 5,725 1,080 854 1,198 1,339 1,080 854 1,136 1,245 5,771 5,885 4,030 4,480 1,710 1,400 1,102 828 304 289 321 368 1,406 1,111 781 460 38 outside New York City Feb. 6 ........... 13........... 2 0 ........... 2 7 ........... 29 -1 218 405 325 487 10,228 10,313 10,546 10,412 -10,417 -10,719 -10,863 -10,907 112.2 115.2 116.9 119.9 15,097 15,612 15,470 15,396 4,869 5,300 4,925 4,984 4,075 3,913 3,916 4,426 11,022 11,700 11,555 10,970 794 1,387 1,009 558 781 841 885 1,053 309 250 250 182 472 591 634 871 M ar. 6 ........... 13........... 2 0 ........... 2 7 ........... 42 -2 8 -6 16 170 333 274 652 10,370 11,027 11,162 10,662 -10,497 -11,388 -11,441 -11,298 116.1 125.2 123.5 124.5 15,907 15,866 15,510 15,597 5,537 4,839 4,348 4,935 4,783 4,357 3,987 4,126 11,124 11,509 11,523 11,471 754 482 361 809 804 786 709 747 286 378 321 314 518 408 388 433 6 ........... 13........... 2 0 ........... 2 7 ........... 56 4,190 4,486 4,289 4,489 -4 ,1 8 9 -4 ,5 2 4 -4 ,2 8 4 -4 ,4 8 5 268.6 281.9 270.5 286.2 4,981 5,118 4,946 5,282 790 631 657 792 790 631 657 792 4,190 4,486 4,289 4,489 374 376 358 438 374 376 358 438 6 ........... 13........... 2 0 ........... 2 7 ........... 52 4,410 4,205 4,009 3,877 -4 ,4 0 4 -4 ,2 6 4 -4 ,0 2 0 -3 ,8 6 7 289.7 273.7 250.3 247.4 5,330 5,061 4,846 4,691 920 856 837 814 919 857 837 814 4,411 4,205 4,009 3,877 441 423 414 457 441 423 414 457 5 in C ity o f Chicago Feb. Mar. 33 others Feb. 6 ........... 13........... 2 0 ........... 2 7 ........... 27 -1 9 3 -1 3 218 350 325 487 6,038 5,826 6,257 5,923 -6,229 -6,195 -6,579 -6,422 80.7 80.4 85.3 85.3 10,116 10,495 10,524 10,114 4,078 4,668 4,268 4,191 3,284 3,281 3,259 3,634 6,832 7,213 7,266 6,480 794 1,387 1,009 558 407 465 527 615 309 250 250 182 97 215 276 434 Mar. 6 ........... 13............ 2 0 ............ 2 7 ............ 36 -21 6 7 170 280 274 652 5,959 6,822 7,153 6,785 -6,093 -7,124 -7,421 7,430 81.0 94.5 96.9 98.9 10,577 10,805 10,664 10,906 4,618 3,983 3,510 4,121 3,864 3,501 3,150 3,312 6,713 7,304 7,514 7,594 754 482 361 809 363 362 295 289 286 378 321 314 77 -1 6 -2 6 -2 5 1 Based upon reserve balances, including all adjustments applicable to the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, if any, were deducted. Excess reserves for later periods are net o f all carry over reserves. 2 Derived from averages for individual banks for entire week. Figure for each bank indicates extent to which the bank’s weekly average pur chases and sales are offsetting. 3 Federal funds loaned, net funds supplied to each dealer by clearing banks, repurchase agreements (purchases o f securities from dealers subject to resale), or other lending arrangements. 4 Federal funds borrowed, net funds acquired from each dealer by clearing banks, reverse repurchase agreements (sales o f securities to dealers subject to repurchase), resale agreements, and borrowings secured by Govt, or other issues. N o t e . —Weekly averages o f daily figures. F or description o f series and back data, see Aug. 1964 B u l l e t in , pp. 944-74. A 8 F.R. BANK INTEREST RATES a APRIL 1974 CURRENT RATES (Per cent per annum) Loans to member banks— Loans to all others under last par. Sec. 13 3 Under Sec. 10(b) 2 Under Secs. 13 and 13a 1 Federal Reserve Bank Rate on M ar. 31, 1974 Previous rate Effective date Rate on M ar. 31, 1974 Effective date Previous rate B oston............ New Y o rk .. . . Philadelphia. . C leveland. . . . R ichm ond. . . . A tlan ta........... m m m m m m Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 71/2 Chicago.......... St. Louis........ M inneapolis.. Kansas C ity .. D allas............. San Francisco m m m Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14, 14, 14, 1973 1973 1973 1973 1973 1973 Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14, 14, 14, 1973 1973 1973 1973 1973 1973 m 71/2 71/2 71/2 1 Discounts o f eligible paper and advances secured by such paper or by U.S. Govt, obligations or any other obligations eligible for F.R. Bank purchase. M aximum m aturity: 90 days except that discounts o f certain bankers’ acceptances and o f agricultural paper may have maturities not over 6 months and 9 m onths, respectively. 2 Advances secured to the satisfaction o f the F.R. Bank. Maximum m aturity: 4 months. 3 Advances to individuals, partnerships, or corporations other than member banks secured by direct obligations of, or obligations fully Rate on Mar. 31, 1974 91/2 91/2 Aug. Aug. Aug. Aug. Aug. Aug. 23, 14, 14, 14, 14, 16, 1973 1973 1973 1973 1973 1973 4 9i/2 4 91/2 4 91/2 4 91/2 4 91/2 Aug. Aug. Aug. Aug. Aug. Aug. 14, 14, 14, 14 14, 14, 1973 1973 1973 1973 1973 1973 4 91/2 91/2 71/2 71/2 7*4 71/2 4 91/2 4 91/2 71/2 71/2 71/2 m 71/2 91/2 71/2 Effective date Previous rate guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum m aturity: 90 days. 4 Also effective on the same dates as the other rates shown above for the eight Reserve Banks so designated, a rate of 7 Vi percent was approved on advances to nonmember banks, to be applicable in special circumstances resulting from implementation o f changes in Regulation J, which became effective on Nov. 9, 1972. See “ Announcem ents” on p. 942 o f the Oct. 1972 B u l l e t in and p. 994 of the Nov. 1972 B u l l e t in . SUMMARY OF EARLIER CHANGES (Per cent per annum) Effective date Range (or level)— All F.R. Banks F.R. Bank of N .Y . Effective date In effect Dec. 31, 1954 Wi I 1/2 1959—Mar. 1955—Apr. 14............. 15............. May 2 ............. Aug. 4 ............. 5 ............. 12............. Sept. 9 ............. 13............. Nov. 18............. 23............. 1 1/ 2 -I 3/4 1 Vi-13/4 l 3/4 134-214 134-2 1 4 2 - 21/4 2 - 21/4 IVi 1*4 May June Sept. 21/4 21/4 - 21/2 2 Vi 134 2 2 214 214 21/2 21/2 1956—Apr. 13............. 20............. Aug. 24............. 31............. 21/2-3 234-3 23/4-3 3 23/4 3 3 1957— Aug. 3 -3i / 2 31/2 3 -31/2 3 3 31/2 3 3 23/4-3 23/4-3 3 234 21/4 9 ............. 2 3 Nov. 15............. Dec. 2 ............. 1958—Jan. M ar. Apr. May Aug. Sept. Oct. Nov. 22............. 2 4 7 ............. 13............ 21........... 18........... 9 ........... 15........... 12........... 23........... 24........... 7 ........... 2 1 4 -3 21/4 -2 3 4 214 l% -2 % 1V4 13/4 -2 1 3 4 -2 2 2 - 21/2 21/2 iy 4 234 21/4 21/4 1% 1% l 3/4 2 2 2 21/2 1960—June 6 ..................... 16..................... 29..................... 12..................... 11..................... 18..................... 3 ..................... 10 14 Aug. 12..................... Sept. 9 ..................... 1963—July 17..................... 26..................... 1964—Nov. 24..................... 30..................... 1965— Dec. 6 ..................... 13..................... 1967—Apr. 7 ..................... 14..................... Nov. 20..................... 27..................... 1968—Mar. 15..................... 22..................... Apr. 19..................... 26..................... A u z. 16..................... 30..................... Dec. 18..................... 20..................... 1969— Apr. 4 ..................... 8..................... N o t e .—Rates under Secs. 13 and 13a (as described in table and notes above). For data before 1955, see Banking and M onetary Statistics , 1943, pp. 439-42, and Supplement to Section 12, p. 31. Range (or level)— All F.R. Banks F.R. Bank of N.Y. 2 Vi-3 3 3 - 31/2 3Vi 3 Vi-4 3 3 3Vi 31/2 4 4 4 3Vi 31/2 3 3 4 31/2-4 3!/2-4 3 Vi 3 -3i/2 3 3 -3Vi 3 Vi 31/2-4 4 4 - 41/2 4Vi 4 31/2 31/2 4 4 41/2 41/2 1970—Nov. 11..................... 13..................... 16..................... Dec. I ..................... 11..................... 8 ..................... 15...................... 19...................... 22...................... 29...................... Feb. 13..................... 19..................... July 16..................... 2 3 ..................... Nov. 11..................... 19..................... Dec. 17..................... 1971—Jan. - 4 i/ 2 4 4 Effective date - 41/2 4Vi 41/2 41/2 4Vi-5 5 5 -51/2 51/2 5i/4-5Vi 51/4 5i/4-5i/2 51/2 51/ 2 -6 6 41/2 5 51/2 51/2 51/2 51/4 51/2 51/2 6 6 1973—Jan. 15.................... Feb. 26..................... M ar. 2 ..................... Apr. 23..................... May 4 ..................... 18..................... June 11..................... July 2 ..................... Aug. 14..................... 23..................... In effect Mar. 31, 1974. . . . Range (or level)— All F.R. Banks 534-6 534-6 534 51/2-53/4 51/2-53/4 5Vi 51/4-51/2 5V4 5 -514 5 -514 5 43/4-5 434 434-5 5 434-5 434 4Vi-434 41/ 2 -4 3 4 4Vi 5 5 -51/2 5Vi 51/2-534 534 53/4-6 6 6 - 61/2 6Vi 7 7 -71/2 71/2 7Vi F.R. Bank of N.Y. 6 5 34 5 34 5 3/4 5Vi 51/2 51/4 51/4 514 5 5 5 434 5 5 5 434 434 41/2 41/2 5 51/2 51/2 5Vi 534 6 6 61/2 6Vi 7 71/2 7Vi 71/2 APRIL 1974 □ RESERVE REQUIREMENTS A 9 RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS (Deposit intervals are in millions o f dollars. Requirements are in per cent of deposits.) Time 3 (all classes of banks) N et demand 2 Effective date 1 Reserve city Over 5 0-5 In effect Jan. 1, 1963. 1966—July 14, 21 . Sept. 8, 15. 1967— M ar. 2 . . . . Mar. 1 6 .... 1968—Jan. 11, 18. 1969—Apr. 1 7 . .. . 1970—Oct. 1 ......... Over 5 0-5 161/z 31/2 3 161/z 17 17 171/2 12 121/2 O ther time 0-2 Sav ings 31/2 3 2-10 10-100 100-400 Over 5 Sav ings Over 400 5 Over 56 0-5 1972—Nov. 9 .. Nov. 16. 10 12 1973—July 19.. IOI/2 121/2 131/2 18 In effect Mar. 31, 1974 10% 121/2 13% 18 121/2 13 7 161/2 13 Present legal requirem ent: Net demand deposits, reserve city banks N et demand deposits, other banks Time deposits............................................. 1 W hen two dates are shown, the first applies to the change at reserve city banks and the second to the change at country banks. F o r changes prior to 1963 see Board’s Annual Reports. 2 (a) D em and deposits subject to reserve requirements are gross de mand deposits minus cash items in process o f collection and demand balances due from domestic banks. (b) Requirem ent schedules are graduated, and each deposit interval applies to that part o f the deposits o f each bank. (c) Since Oct. 16, 1969, member banks have been required under Regulation M to maintain reserves against foreign branch deposits com puted on the basis o f net balances due from domestic offices to their foreign branches and against foreign branch loans to U.S. residents. Regulation D imposes a similar reserve requirement on borrowings from foreign banks by domestic offices o f a member bank. The reserve per centage applicable to each o f these classifications is 8 per cent. The require ment was 10 per cent originally, was increased to 20 per cent on Jan. 7, 1971, and was reduced to the current 8 per cent effective June 21, 1973. Initially certain base am ounts were exempted in the com putation o f the requirements, but effective M ar. 14, 1974, the last o f these reserve-free bases were eliminated. For details, see Regulations D and M. 3 Effective Jan. 5, 1967, time deposits such as Christmas and vacation club accounts became subject to same requirements as savings deposits. For other notes see 2(b) and 2(c) above. 4 Effective Nov. 9, 1972, a new criterion was adopted to designate re serve cities, and on the same date requirements for reserves against net demand deposits o f member banks were restructured to provide that each member bank will maintain reserves related to the size o f its net demand deposits. The new reserve city designations are as follows: A bank having net demand deposits o f more than $400 million is considered to have the character o f business o f a reserve city bank, and the presence o f the head office o f such a bank constitutes designation o f that place as a reserve Time 3 Effective date O ther time Other 0-5 N et demand 24 17% Minimum Maximum 10 7 3 22 14 10 city. Cities in which there are F.R. Banks or branches are also reserve cities. Any banks having net demand deposits o f $400 million or less are considered to have the character o f business of banks outside of reserve cities and are permitted to maintain reserves at ratios set for banks not in reserve cities. F or details, see Regulation D and appropriate sup plements and amendments. 5 Reserve city banks. 6 Except as noted below, effective Dec. 27, 1973, member banks are subject to an 8 per cent marginal reserve requirement against increases in the aggregate o f (a) outstanding time deposits of $100,000 or more, (b) outstanding funds obtained by the bank through issuance by a bank’s affiliate o f obligations subject to the existing reserve requirements on time deposits, and (c) funds from sales o f finance bills. The 8 per cent require ment applies to balances above a specified base, but is not applicable to banks that have obligations o f these types aggregating less than $10 million. F or the period June 21 to Aug. 30, 1973, (a) included only single-maturity time deposits. Previous requirements have been: 8 per cent for (a) and (b) from June 21 to Sept. 19, 1973, and for (c) from July 12 to Sept. 19, 1973; and 11 per cent from Sept. 20 to Dec. 26, 1973. For details, see Regulation D and appropriate supplements and amendments. 7 The 16% per cent requirement applied for one week, only to former reserve city banks. F or other banks, the 13 per cent requirement was continued in this deposit interval. 8 See preceding columns for earliest effective date o f this rate. N o t e .—All required reserves were held on deposit with F.R. Banks June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member banks were allowed to count part o f their currency and coin as reserves; effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. A 10 MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ APRIL 1974 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates July 20, 1966—June 30, 1973 Rates beginning July 1, 1973 Effective date Effective date Type of deposit Type of deposit July 20, 1966 Savings deposits........................... Other time deposits : 1 Multiple m aturity : 2 30—89 d ay s........................ 90 days to 1 y e ar............. 1 year to 2 years............. 2 years or m ore............... Single-maturity: Less than $100,000: 30 days to 1 y ear............. 1 year to 2 years............. 2 years and o v e r............... $ 1 0 0 ,0 0 0 or more: 30—59 d ay s........................ 60-89 d ay s........................ 90—179 d ay s...................... 180 days to 1 year........... 1 year or m ore................. Apr. 19, 1968 Sept. 26, 1966 4 4 4 4 I ^ 5 J 4 4 5 5 Jan. 21, 1970 4% f 51/2 ) | 51/2 5 5 I 534 ( 5 51/2 534 I ) ( 51/2 1 53/4 y 51/2 | 5% 4% 5 I}661/4 i / cally renewable at m aturity w ithout action by the depositor and deposits that are payable after written notice o f withdrawal. 3 M aximum rates on all single-maturity time deposits in denominations o f $100,000 or more have been suspended. Rates that were effective Jan. 21, 1970, and the dates when they were suspended are: 6 V4 6 V2 per centl per cent j June 24, 1970 6 % per cent] M ay 16, 1973 7 per cent 71/2 per cent] Savings deposits....................................................... Other time deposits (multiple- and single m aturity): Less than $100,000: 30—89 days................................................... 90 days to 1 year........................................ 1 year to 2 % years..................................... 2 Yi years or m ore....................................... 4 years or more in minimum denom ination of $ 1 ,0 0 0 ................................ $ 1 0 0 ,0 0 0 or m ore................................................ 5 5 5% 6 6Vi ( 4) ( 3) Rates on multiple-maturity time deposits in demonination of $100,000 or more were suspended July 16, 1973, when the distinction between single- and multiple-maturity deposits was eliminated. 4 Between July 1 and Oct. 31, 1973, there was no ceiling for 4-year For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On convertible bonds On margin stocks Ending date 1937- -Nov. 1945- -Feb. July 1946- -Jan. 1947- -Feb. 1949- -M ar. 1951- -Jan. 1953- -Feb. 1955- -Jan. Apr. 1958- -Jan. Aug. Oct. 1960- -July 1962- -July 1963- -Nov. 1 5 5 21 1 30 17 20 4 23 16 5 16 28 10 6 1945— Feb. July 1946—Jan. I 9 4 7 —Jan. I 9 4 9 —M ar. 1951—Jan. 1953 — Feb. 1955—J a n . Apr. 1958—Jan. Aug. Oct. I960—July 1962—July 1963—Nov. 1968—Mar. 4 ................... 4 ................... 2 0 ................... 3 1 ................... 2 9 ................... 16................... 19................... 3 ................... 2 2 ................... 15................... 4 ................... 15................... 2 7 ................... 9 ................... 5 ................... 10................... 1968— Mar. June 1970— May 1971—Dec. 1972—Nov. 11 June 1970— May 1971— Dec. 1972—Nov. 1974—Jan. 1. 3, 1974 7 ................... 5 ................... 3 ................... 22.................. 2 ..................... 8 6 6 24 On short sales (T) T U T G U G 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 j > 70 80 65 55 65 50 50 60 50 50 50 50 70 80 65 55 65 50 N o t e . —Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the am ount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage o f the m arket value o f the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of G overnors effective Mar. 11, 1968. 5 r /z 6% 71/4 (3) N o t e .—Maximum rates that may be paid by member banks are estab lished by the Board of Governors under provisions of Regulation Q; however, a member bank may not pay a rate in excess of the maximum rate payable by State banks or trust companies on like deposits under the laws of the State in which the member bank is located. Beginning Feb. 1, 1936, maximum rates that may be paid by nonmember insured commercial banks, as established by the FD IC , have been the same as those in effect for member banks. For previous changes, see earlier issues of the B u l l e t in . (Per cent of market value) Beginning date 5 certificates with minimum denomination of $1,000. The am ount of such certificates that a bank could issue was limited to 5 per cent of its total time and savings deposits. Sales in excess of that am ount were subject to the 6 1/2 per cent ceiling that applies to time deposits maturing in 2 % years or more. Effective Nov. 1, 1973, a ceiling rate of l l/x per cent was imposed on certificates maturing in 4 years or more with minimum denomination of $1,000. There is no limitation on the am ount of these certificates that banks may issue. MARGIN REQUIREMENTS Period Nov. 1, 1973 ( 3) ( 3) ( 3) (3) ( 3) 1 For exceptions with respect to certain foreign time deposits, see B u l l e t in for Feb. 1968, p. 167. 2 M ultiple-maturity time deposits include deposits that are autom ati 30-59 days 60-89 days 90-179 days 180 days to 1 year 1 year or more July 1, 1973 APRIL 1974 □ OPEN MARKET ACCOUNT A 11 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In m illions o f dollars) O utright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions) Treasury bills 1 G ross pur chases Others within 1 year 2 Gross Redemp sales tions Gross pur chases Exch., Gross maturity sales shifts, or redemp tions 11,074 8,896 8,522 15,517 5,214 3,642 6,467 4,£ 2,160 1,064 2,545 3,405 99 1,036 125 '1 ,3 9 6 -3 ,4 8 3 -6 ,4 6 2 2,933 ' —140 1973—Feb... M a r.. A p r.., M a y ., J u n e .. J u ly .. A u g .. Sep t.. O c t... N o v .. D e c .. 1,558 1,569 1,377 717 1,047 1,640 655 480 2,117 583 1.919 695 260 25 -1 ,4 0 8 623 218 495 945 401 153 489 70 200 200 51 600 163 60 456 564 1,101 10 1,515 34 1974—J a n ... F e b .. 1,340 768 335 391 1,402 410 687 1970. 1971. 1972. 1973. Gross pur chases 351 836 5,430 4,672 -1,405 -2,028 61 3,476 '4,361 -8 1 3 Gross pur chases Redemp tions Gross sales Gross sales 249 933 539 500 -1,845 685 -2,094 895 79 -2,068 Gross pur chases 93 311 167 129 -1 0 2 150 250 87 32 '40 -7 8 '5,105 78 -4,812 -2 3 100 331 35 680 -3 4 Gross sales 77 12,362 12,515 10,142 '18,121 5,214 3,642 6,467 4,880 2,160 2,019 2,862 '4 ,5 9 2 12,177 16,205 23,319 45,780 12,177 16,205 23,319 45,780 33,859 44,741 31,103 74,755 33,859 43,519 32,228 74,795 4,988 8,076 -3 1 2 8,610 1973—F e b .. . M ar... A p r... M a y .. Ju n e .. Ju ly ... A u g ... S e p t... O c t.. . N o v ... D e c ... 1,754 1,569 1,584 717 1,274 1,666 1,006 1,316 2,117 1,116 2,145 695 260 623 218 495 945 401 153 489 70 200 200 51 600 163 60 807 1,400 1,101 10 4,521 1,941 2,101 1,105 4,630 3,405 9,632 6,981 4,735 2,089 3,435 4,521 1,941 2,101 1,105 4,630 3,405 9,632 6,981 4,735 2,089 3,435 2,774 6,024 5,664 7,379 5,621 7,651 2,234 3,309 8,220 6,637 9,523 3,034 5,478 5,978 8,240 5,621 6,686 2,492 2,752 7,859 7,525 10,202 1974—Jan .. . F e b ... 1,519 798 335 391 1,402 410 2,590 2,393 2,590 2,393 4,442 4,265 4,500 4,265 ‘ ‘25 200 Outright Sales or redemp tions Gross pur chases 35 -2 ,2 2 0 Federal agency obligations Net change in U.S. Govt, securi ties 1970............... 1971............... 1972............... 1973............... 1 Before Nov. 1973 B u l l e t in , included matched sale-purchase trans actions, which are now shown separately. 2 Includes special certificates acquired when the Treasury borrows directly from the Federal Reserve, as follows: June 1971, 955; Sept. 1972, 38; Aug. 1973.. 351; Sept. 1973, 836. Gross Exch. or sales maturity pu r chases ” ii -1,316 -9 2 2 Repurchase agreements (U.S. Govt, securities) Gross Exch. or sales maturity 'l 9 125 116 Period Gross pur chases G ross pur chases 1,338 789 579 123 27 Over 10 years 5-10 years Gross Exch. or sales maturity shifts *i 27 -3,829 M atched sale-purchase transactions (Treasury bills) Total outright 1 1-5 years 485 1,197 865 370 239 599 1,656 1,218 - 1 ,3 6 7 893 2,076 -1 ,0 0 5 72 2,325 - 1 ,3 6 0 1,387 229 174 176 74 212 18 14 19 21 19 6 20 30 4 3 84 -2 7 6 -3 29 120 39 46 Repur chase agree ments, net 35 Bankers’ acceptances, net Net change ; Repur chase agree ments O ut right -6 22 -9 -2 101 -8 8 29 -2 8 61 -6 5 -2 9 -3 -1 7 -1 -1 7 -1 2 -7 -9 8 -2 23 106 157 -9 5 -2 0 20 -1 2 6 -4 2 181 -1 4 5 -3 6 95 -6 6 -3 6 -5 2 78 -4 1 69 -4 6 -3 4 -2 6 4,982 8,866 272 9,227 644 1,636 1,106 -1 ,4 7 0 1,085 2,416 -9 1 5 7 2,440 -1,307 1,386 -3 2 8 72 1 3 N et change in U.S. Govt, securities, Federal agency obligations, and bankers’ acceptances. 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 o f U.S. dollar equivalent) End o f period Total Pounds sterling 1969—D ec.............. 1970—D ec.............. 1971—Dec............... 1,967 257 18 1,575 154 3 1972—D ec.............. 192 92 4 4 4 4 4 4 5 4 4 4 4 1973—ja n ................ Feb............... M ar.............. A pr............... M a y ............. Ju n e ............. July.............. Aug.............. Sept.............. O ct............... Nov.............. D ec.............. A ustrian schillings Belgian francs Canadian dollars * D anish kroner French francs G erm an marks Italian lire Japanese yen Swiss francs 1 * 3 * * * * * 164 1 20 6 * * * * * * * * * * * * * * * * * * * * * 67 * * * * * * 1 * * * * 1 1 1 1 1 1 1 1 1 1 1 1 20 3 3 3 3 3 3 3 3 3 3 3 3 * * * * * * * * * * * * 199 60 98 2 125 1 1 1 N eth er lands guilders 3 * 4 4 8 A 12 FEDERAL RESERVE BANKS □ APRIL 1974 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) End o f month Wednesday 1974 1974 Item Mar. 27 Mar. 20 Mar. 13 Mar. 6 Feb. 27 Mar. 31 1973 Feb. 28 Mar. 31 Assets 11,460 400 Gold certificate account.................................... Special Drawing Rights certificate account. Cash............................................................. Loans: Member bank borrowings............... O ther..................................................... Acceptances: Bought outright.................................. Held under repurchase agreements. Federal agency obligations: Bought outright................................... Held under repurchase agreements. U.S. Govt, securities: Bought outright: B i l l s .................................... Bonds......................... Total bought outright....................... Held under repurchase agreements. Total U.S. Govt, securities. Total assets. 11,460 400 11,460 400 11,460 400 11,460 400 10,303 400 272 282 290 298 301 280 307 358 2,162 1,627 846 1,189 1,821 720 2,048 74 92 67 67 69 73 223 2,123 24 1,953 36 1,953 128 1,997 2,001 2,123 185 2,001 1,280 94 35,698 36,418 35,973 36,389 36,777 36,400 36,467 32,761 38,956 3,004 38,956 3,004 38,796 2,974 38,796 2,974 38,796 2,974 38,956 3,004 38,796 2,974 36,839 3,501 1,2 77,658 371 78,378 1,094 i 77,743 1,902 i 78,159 1,2 78,547 i 78,360 1,123 i 78,237 i 73,101 1,175 86 79,472 79,645 78,159 78,547 79,483 78,237 74,276 82,340 *7,342 228 83,789 *8,000 228 83,506 8,260 227 81,069 9,611 227 81,806 7,451 225 83,908 6,074 227 81,027 7,333 226 77,863 6,637 197 6 15 755 15 781 15 673 600 6 795 845 32 700 4 714 *102,843 *104,929 104,939 103,753 102,265 103,200 101,485 96,476 78,029 Total loans and securities..................... Cash items in process o f collection. . . Bank premises......................................... Other assets: Denominated in foreign currencies. All other............................................... 11,460 400 2,034 Certificates—Special. O ther.. N o t e s ................................. 11,460 400 22 Liabilities F.R. notes............................................... Deposits: Member bank reserves.................... U.S. Treasury—General account. Foreign............................................... Other: All other3 ...................................... 63,107 63,096 63,237 62,832 62,362 62,900 62,247 57,419 *28,312 2,094 355 *30,059 2,079 261 30,051 1,944 274 29,703 1,528 282 28,144 2,337 273 30,135 1,373 366 27,989 2,016 542 27,713 2,881 327 683 675 673 679 696 Total deposits. *31,444 *33,074 33,006 32,200 31,521 32,547 31,226 31,617 5,219 987 5,737 1,001 5,751 1,029 5,938 972 5,325 966 4,491 1,118 4,921 988 4,792 709 *100,757 *102,908 103,023 101,942 100,174 101,056 99,382 94,537 Capital paid in ................................................................... Surplus................................................................................. Other capital accounts..................................................... 872 844 370 870 844 307 871 844 201 864 844 103 862 844 385 872 844 428 862 844 397 807 793 339 Total liabilities and capital accounts............................ *102,843 *104,929 104,939 103,753 102,265 103,200 101,485 96,476 Deferred availability cash items............ Other liabilities and accrued dividends. Total liabilities. 687 Capital accounts Contingent liability on acceptances purchased for foreign correspondents................................................. Marketable U.S. Govt, securities held in custody for foreign and international accounts........................ 682 673 657 596 595 684 592 282 26,117 26,270 25,825 25,520 25,000 26,635 25,233 31,529 Federal Reserve Notes—Federal Reserve Agents’ Accounts Collateral held against notes outstanding: Gold certificate account................................................. U.S. Govt, securities....................................................... 1 See note 8 on p. A-5. 67,062 67,130 67,067 66,884 66,933 67,218 66,921 61,615 2,305 66,820 2,305 66,800 2,305 66,800 2,255 66,600 2,255 66,600 2,305 66,840 2,255 66,600 2,291 61,331 69,125 69,105 69,105 68,855 68,855 69,145 68,855 63,622 2 See note 9 on p. A-5. 3 See note 5 on p. A-4. APRIL 1974 □ FEDERAL RESERVE BANKS; BANK DEBITS A 13 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) End o f month Wednesday 1974 Item Mar. 27 Mar. 20 1974 1973 Mar. 13 Mar. 6 Feb. 27 Mar. 31 Feb. 28 Mar. 31 2,034 2,012 22 2 ,1 6 2 2,140 22 1,628 1,613 15 844 832 12 1,195 1,185 10 1,821 1,799 22 721 712 9 2,049 2,018 31 130 83 47 166 106 60 153 96 57 67 21 46 69 29 40 296 253 43 69 29 40 165 102 63 16 days to 90 days........................................................... 91 days to 1 year............................................................. Over 1 year to 5 years.................................................... Over 5 years to 10 years................................................. Over 10 years.................................................................... 78,029 5,465 18,951 21,611 22,344 7,836 1,822 79,472 6,194 19,555 21,721 22,344 7,836 1,822 79,645 6,976 19,425 21,432 22,235 7,780 1,797 78,159 5,911 19,406 2i;030 22:235 7,780 1,797 78,547 5,730 19,026 21,979 22,235 7,780 1,797 79,483 5,298 18,951 23,232 22,344 7,836 1,822 78,237 4,166 18,958 23,301 22,235 7,780 1,797 74,276 5,013 22,524 13,021 28,021 4,119 1,578 Within 15 days1............................................................... 16 days to 90 days........................................................... 91 days to 1 year............................................................. Over 1 year to 5 years.................................................... Over 5 years to 10 years................................................ Over 10 years.................................................................... 2,147 24 135 275 821 608 284 1,989 36 135 274 768 537 239 2,081 128 135 274 768 537 239 1.997 44 63 248 846 557 239 2,001 48 63 248 846 557 239 2,308 185 135 275 821 608 284 2,001 48 63 248 846 557 239 1,374 102 52 214 568 247 191 Within 15 days................................................................. 16 days to 90 days........................................................... 91 days to 1 year............................................................. U.S. Government securities—Total................................. 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 (billions of dollars) Turnover o f demand deposits Period 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s Total 233 SMSA’s N.Y. 7,227.0 6,844.8 6,927.5 7,177.0 7,224.6 7,381.4 7,744.6 8,025.3 8,137.2 8,437.9 8,097.7 3,809.9 3,873.4 3,857.5 3,918.3 4,050.2 4,2 8 2 .4 4,3 1 8 .2 4,1 9 5 .7 4 ,4 1 8 .0 4 ,519.8 4,462.8 8,847.5 9,114.4 9,043.8 9,275.1 9,414.3 9,843.1 10,144.3 9,893.3 10,257.2 10,611.6 10,543.6 5,037.6 5,241.0 5,186.2 5,356.7 5,364.1 5,560.8 5,826.0 5,697.6 5,839.1 6,091.7 6,080.8 97.9 97.1 95.7 97.8 99.9 102.6 106.2 107.4 109.5 113.2 110.2 8 ,0 8 1 .0 8,896.2 4,517.1 4 ,5 8 5 .0 10,736.0 10,916.3 6,218.8 6,331.3 111.5 118.0 Leading SMSA’s Total 233 SMSA’s N.Y. 1973—Feb.................................. Mar................................. Apr.................................. M ay................................ June................................ July................................. Aug................................. Sept................................. Oct................................... N ov................................. D ec.................................. 16,074.6 15,959.2 15,971.2 16,452.0 16,638.8 17,224.5 17,888.9 17,918.7 18,394.4 19,049.5 18,641.3 1974—Jan.' ............................... Feb.................................. 18,816.9 19,812.5 1 Excludes interbank and U.S. Govt, demand deposit accounts. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and Los Angeles-Long Beach. Leading SMSA’s 6 others2 Total 232 SMSA’s (excl. N.Y.) 226 other SMSA’s 238.0 228.3 228.9 235.1 245.0 247.5 252.5 266.4 265.3 274.9 269.8 103.3 104.5 101.9 103.7 107.6 111.7 113.6 111.6 116.4 118.6 115.0 66.1 67.8 66.2 67.4 68.7 71.3 73.6 72.4 74.7 77.1 75.8 52.0 53.9 52.5 53.6 54.0 55.8 58.4 57.5 58.8 61.2 60.6 270.3 294.2 116.5 120.2 77.3 79.3 62.2 63.6 N ote.—Total SMSA’s includes some cities and counties not designated as SMSA’s. For back data see pp. 634-35 of July 1972 Bulletin. A 14 MONEY STOCK □ APRIL 1974 MEASURES OF THE MONEY STOCK (In billions o f dollars) Seasonally adjusted Month or week M2 Mi N ot seasonally adjusted Mi Mi M2 Mz Composition o f measures is described in the N ote below. 1970—D e c 1971—D e c 1972—D e c 221.2 235.2 255.7 425.2 473.0 525.5 641.2 726.9 822.4 227.6 241.9 263.0 429.9 477.9 530.6 645.5 731.2 826.6 1973—Ap r May........ 538.3 543.6 549.4 552.0 554.9 556.6 561.6 566.7 570.7 847.7 855.0 863.5 867.9 870.9 873.2 879.8 886.9 893.2 260.9 257.9 263.6 265.7 262.9 263.9 266.0 270.5 278.1 542.3 541.7 548.8 551.0 551.1 554.2 559.9 565.1 575.8 852.6 853.6 864.0 July......... Aug......... Sept........ Oct.......... N ov........ Dec.......... 259.4 262.4 265.5 266.4 266.2 265.4 266.5 268.8 270.4 867.0 870.4 877.5 884.0 897.5 197 4 _ jan.......... Feb.......... M ar.*. .. 269.6 272.5 274.9 573.7 580.1 584.3 898.4 906.8 913.4 276.8 269.7 272.2 579.7 577.6 583.8 904.6 904.8 914.3 27* 275.7 274.8 274.4 274.3 584.7 583.9 583.9 583.9 272.8 272.4 272.0 270.0 583.0 583.6 583.7 582.3 3* 276.0 586.1 275.5 588.7 J u n e .......... 868.0 Week ending— 1974—Mar. 6. 13. 20* Apr. N ote.—Composition o f the money stock measures is as follows: M i: Averages o f daily figures for (1) demand deposits o f commercial banks other than domestic interbank and U.S. Govt., less cash items in process o f collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of commercial banks. M 2: Averages o f daily figures for M i plus savings deposits, time de posits open account, and time certificates other than negotiable C D ’s of $100,000 of large weekly reporting banks. M i : M 2 plus the average o f the beginning- and end-of-month figures for deposits of mutual savings banks and for savings capital of savings and loan associations. For description and back data, see “Revision o f the Money Stock Meas ures and Member Bank Deposits” on pp. 81-95 of the Feb. 1974 Bulletin. COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions o f dollars) Month or week Cur ren cy Seasonally adjusted N ot seasonally adjusted Commercial banks Commercial banks Time and savings deposits D e mand de pos its C D ’s 1 N on bank thrift insti tu tions2 21b. 1 Demand deposits Cur ren cy Total Mem ber D omesticnonmember Time and savings deposits Other Total Non bank thrift insti tu tions2 U.S. Govt. de pos its3 1970— D e c 1971— D e c 1972— D e c 49.1 52.6 56.9 172.2 182.6 198.7 25.3 33.0 4 3.4 203.9 237.9 269.9 229.2 270.9 313.3 253.9 296.9 50.0 53.5 57.9 177.7 188.4 205.1 136.9 142.6 152.4 39.2 44.1 51.4 25.8 33.8 44.3 202.3 236.0 267.6 228.1 269.8 311.8 215.6 253.3 296.0 7.3 6.9 7.4 1973— A p r M a y ......... J u n e......... July........... A u g ........... Sept........... Oct............ 58.6 58.9 59.4 59.5 59.8 60.2 60.4 60.9 61.6 200.8 58.4 61.3 62.0 63.9 66.3 66.7 63.8 62.0 62.8 278.9 281.3 283.8 285.6 288.7 291.2 295. 1 297.8 300.3 337.3 342.6 345.8 349.4 355.0 357.9 358.9 359.9 363. 1 309.4 311.4 314.2 315.9 315.9 316.6 318.3 320.2 322.5 58.3 58.7 59.4 59.9 60.0 60.1 60.4 61.4 62.6 202.6 203.4 206.2 207.0 206.4 205.2 206.1 207.9 208.8 199.2 204.1 205.7 202.9 203.8 205.6 209.1 215.5 148.9 145.8 149.1 149.7 147.8 148.2 149.7 151.8 156.9 51.6 51.1 52.4 53.3 52.7 53.3 53.7 54.9 56.2 56. 1 58.8 59.3 62.3 68.4 281.4 283.8 285.2 285.3 288.2 290.3 293.9 294.6 297.7 337.6 342.6 344.5 347.6 356.6 359.2 360.2 358.7 361.8 310.3 312.0 315.3 317.0 315.9 316.1 317.6 318.9 321.7 8.3 8 .7 7.1 6.5 4.1 5.3 4 .3 6.3 207.8 65.5 67.7 304.1 307.6 309.4 369.6 374.2 377.1 324.7 326.7 329.1 61.5 61.8 62.6 215.3 207.9 209.5 156.3 151.1 152.4 56.6 54.5 54.8 66.1 211.7 65.9 67.0 302.9 307.9 311.6 368.9 373.8 378.6 325.0 327.2 330.6 6 .5 6.3 212.7 65.9 N ov.......... D e c ........... 1974— Ja...............n Feb ........... M a r .* .. . . 61.8 62.6 63.2 210.0 66.6 68.8 66.3 64.1 64. 1 6.0 8.0 Week ending— 1974— Mar. Apr. 6.6 211.6 211.3 67.1 68.8 308.9 309. 1 309.5 309.6 374.9 375.9 376.6 378.4 62.4 62.9 62.6 62.3 210.3 209.5 209.4 207.7 153.1 152. 1 152.2 151.2 54.8 55.2 54.8 54.2 65.9 66.5 66.3 67.8 310.3 311.2 311.7 312.2 376.1 377.7 378.0 380.0 4 .2 7.1 27 *. 63.0 63.2 6 3.2 63.3 3*. 63.4 212.6 71.2 310.1 381.3 62.8 212.7 155.0 55.3 69.3 313.3 382.5 7.1 6 .. 1 3 .. 20*. 211.0 66.8 1 Negotiable time certificates o f deposit issued in denominations of $100,000 or more by large weekly reporting commercial banks. 2 Average o f the beginning and end-of-month figures for deposits o f mutual savings banks and savings capital at savings and loan associations. 3 At all commercial banks. See also Note above. 6.8 APRIL 1974 □ BANK RESERVES; BANK CREDIT A 15 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Deposits subject to reserve requirements3 Member bank reserves, S.A .1 S.A. Period Total N onbor rowed Re quired Avail able2 Total Total member bank deposits plus nondeposit items4 N .S.A. Demand Time and savings Private U.S. Govt. Total Demand Time and savings Private U.S. Govt. S.A. N.S.A. 1970—D ec.. .. 1971—D ec___ 1972—Dec___ 29.19 31.30 31.41 28.86 31.17 30.36 28.95 31.12 31.13 27.10 28.96 29.05 321.3 360.3 402.0 178.8 210.4 241.4 136.1 143.8 154.5 6.5 6.1 6.1 325.2 364.6 406.8 178.1 209.7 240.7 141.1 149.2 160.1 6.0 5.7 6.1 332.9 364.3 406.4 336.8 368.7 411.2 1973 31.91 32.30 32.44 32.46 33.58 33.91 34.17 34.94 34.86 35.10 30.08 30.59 30.60 30.61 31.62 31.74 32.32 33.47 33.46 33.81 31.70 32.08 32.29 32.22 33.29 33.73 33.95 34.72 34.62 34.80 29.62 29.87 30.11 30.55 31.36 32.04 32.39 32.84 32.71 32.91 416.3 421.4 425.1 428.9 431.1 436.7 438.6 439.7 440.4 442.2 255.4 260.9 265.1 267.3 270.1 275.0 277.5 277.3 277. 1 279.0 153.3 153.4 154.8 156.3 157.1 157.0 156.2 156.4 157.5 158.3 7.6 7.1 5.2 5.3 3.9 4.8 5.0 6.0 5.8 4.9 416.3 422.3 423.0 426.3 429.9 433.7 437.7 439.7 438.2 447.5 256.2 260.5 264.5 265.9 268.5 276.6 279.0 278.8 276.6 278.5 151.6 154.9 151.4 154.8 156.2 154.0 154.7 156.1 158.3 164.0 8.5 6.8 7.0 ’•5.6 5.1 3.1 4.1 4.8 3.2 5.0 421.2 426.6 430.5 434.5 437.6 443.8 445.9 446.5 447.5 449.6 421.2 427.4 428.4 432.0 436.4 440.8 445.0 446.5 445.3 454.9 1974—Jan , . , 35.85 r3 5 .11 Feb M ar.*.. 34.95 34.80 33.92 33.64 35.69 34.92 33.64 32.80 r3 2 .79 33.12 446.8 r4 4 7 .1 450.7 283.2 286.1 287.9 157.4 r157.9 159.0 6.2 3.0 3.7 453.0 r4 4 7 .1 450.7 283.1 285.7 288.7 r163.4 '•156.3 157.1 6.5 5.1 4.9 454.3 r45 4 .8 459.3 460.5 r45 4 .8 459.3 Mar , , Apr. M ay. . . J u n e .. . July.. . . A ug.. .. Sept.. . . Oct........ N o v .. . . D e c .. . . 1 Averages o f daily figures. Member 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; were reduced by $500 million (net) effective Oct. 1, 1970. Required reserves were reduced by approximately $2.5 billion, effective Nov. 9, 1972; by $1.0 billion, effective Nov. 15; and increased by $300 million effective Nov. 22. 2 Reserves available to support private nonbank deposits are defined as (1) required reserves for (a) private demand deposits, (b) total time and savings deposits, and (c) nondeposit sources subject to reserve re quirements, and (2) excess reserves. This series excludes required reserves for net interbank and U.S. Govt, demand deposits. 3 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 of collection and demand balances due from domestic commercial banks. 4 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 ote.— For description o f revised series and for back data, see article “Revision o f the Money Stock Measures and Member Bank Reserves and Deposits” on pp. 61-79 o f the Feb. 1973 Bulletin. Due to changes in Regulations M and D, member bank reserves include reserves held against nondeposit funds beginning Oct. 16, 1969. Back data may be obtained from the Banking Section, Division o f Research and Statistics, Board of Governors o f the Federal Reserve System, Washington, D.C. 20551. LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS (In billions of dollars) Not seasonally adjusted Seasonally adjusted Loans Date Total loans and invest ments1 Total1 Plus loans sold2 Total Plus loans sold2 U.S. Treas ury Other4 Securities Loans Securities Commercial and industrial3 Total loans and invest ments1 Total1 Plus loans sold2 Commercial and industrial3 Total Plus loans sold2 U.S. Treas ury Other4 1968—Dec. 1969—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 3 1 ___ 3 1 5 .... 3 1 ___ 3 1 ___ 3 1 ___ 390.2 401.7 435.5 484.8 556.4 258.2 279.1 291.7 320.3 377.8 283.0 294.7 323.1 380.4 95.9 105.7 110.0 115.9 129.7 108.3 112.1 117.5 131.4 60.7 51.5 57.9 60.1 61.9 71.3 71.1 85.9 104.4 116.7 400.4 412.1 446.8 497.9 571.4 264.4 286.1 299.0 328.3 387.3 290.0 301.9 331.1 389.9 98.4 108.4 112.5 118.5 132.7 111.0 114.6 120.2 134.4 64.5 54.7 61.7 64.9 67.0 71.5 71.3 86.1 104.7 117.1 1973—Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 2 8 ___ 2 5 ___ 30. . . . 3 0 .... 2 5 * .... 29*___ 26*___ 31*. . . 28*. . . 3 1 * .... 583.6 589.6 597.7 602.0 608.2 616.0 618.2 621.7 624.6 625.4 405.8 411.1 417.4 420.3 427.3 435.3 438.1 440.0 443.6 444.5 409.0 414.7 421.1 423.8 431.3 440.0 442.7 444.6 447.9 448.8 141.8 143.9 146.8 148.2 151.4 153.6 154.0 154.0 155.5 156.3 143.8 146.2 149.0 150.4 154.0 156.5 156.9 156.9 158.2 158.9 60.4 61.0 61.0 61.6 59.6 57.7 56.3 54.9 54.5 53.2 117.4 117.5 119.3 120.1 121.3 123.0 123.8 126.8 126.5 127.7 580.6 587.3 594.8 605.6 606.8 612.0 617.9 621.4 624.5 642.3 401.7 408.3 416.6 426.6 429.1 434.6 439.1 439.9 442.1 455.6 404.8 411.9 420.3 430.1 433.1 439.3 443.8 444.5 446.4 459.9 141.7 144.4 146.4 150.4 151.8 152.2 154. 1 153.3 154.6 159.9 143.7 146.7 148.6 152.6 154.4 155.1 157.0 156.2 157.3 162.5 61.2 60.4 58.3 57.9 56.4 54.7 54.8 55.6 57.3 58.6 117.7 118.6 119.9 121.1 121.4 122.8 123.9 125.9 125.1 128.1 1974—Jan. 3 0 * ... Feb. 2 7 * .... Mar. 27*___ 633.6 641.0 650.3 450.2 454.7 464.0 454.6 459.7 468.9 158.5 159.7 165.3 161.1 162.4 168.1 53.9 55.7 55.7 129.5 130.6 130.6 633.1 635.8 646.8 446.2 449.1 458.9 450.7 454.1 463.8 156.8 158.1 165.1 159.4 160.8 167.9 58.1 56.9 56.7 128.8 129.7 131.2 1 Adjusted to exclude domestic commercial interbank loans. See also note 3. 2 Loans sold are those sold outright by commercial banks to own sub sidiaries, foreign branches, holding companies, and other affiliates. 3 Beginning June 30, 1972, commercial and industrial loans were re duced by about $400 million as a result o f loan reclassifications at one large bank. 4 Beginning June 30, 1971, Farmers Home Administration insured notes totaling approximately $700 million are included in “Other securities” rather than in “Loans.” 5 Beginning June 30, 1969, data revised to include all bank-premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data include commercial banks only. Also, loans and investments are now reported gross, without valuation reserves deducted, rather than net o f valuation reserves as was done previously. For a description o f the revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in above table have been revised to include valuation reserves. N ote.— Total loans and investments: For monthly data, Jan. 1959— June 1973, see Nov. 1973 Bulletin, pp. A-96-A-97, and for 1948-58, Aug. 1968 Bulletin, pp. A-94—A-97. For a description of the current seasonally adjusted series see the Nov. 1973 Bulletin, pp. 831-32, and the Dec. 1971 Bulletin, pp. 971-73. Comm ercial and industrial loans: For monthly data, Jan. 1959-June 1973, see Nov. 1973 Bulletin, pp. A-96-A-98; for description see July 1972 Bulletin, p. 683. Data are for last Wednesday of month except for June 30 and Dec. 31; data are partly or wholly estimated except when June 30 and Dec. 31 are call dates. A 16 COMMERCIAL BANKS □ APRIL 1974 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (A m ounts in m illions o f dollars) Loans and investments Securities Classification by FRS membership and FDIC insurance U.S. Treas ury AH commercial banks: 50,746 21,714 21,808 1941—Dec. 3 1 ... 1947— Dec. 31 6. 116,2°.4 38,057 69,221 199,509 117,642 61,003 1960—Dec. 3 1.. 1970—Dec. 3 1 ... 461,194 313,334 61,742 1971—Dec. 3 1 ... 516,564 346,930 64,930 1972—Dec. 3 1 ... 598,808 414,696 67,028 1973—Mar. Apr. May June July Aup. Sept. Oct. Nov. Dec. 2 8 .. . 2 5 .. . 3 0.. 30.. 25*.. 29*.. 26*., 31*.. 28*., 26*. 608,320 616,480 622,340 635,756 634,220 640,100 645,150 652,330 656,700 675,820 429,400 437,520 444,120 456.780 456,480 462,630 466.420 470.780 474,300 490,680 Other Deposits Total assets— Total Cash lia assets 3 bilities and capital ac counts4 Total3 Bor row ings Demand De mand Time Total capital Times U.S. Govt. Other 79,104 155,377 257,552 576,242 640,255 739,033 71,283 144,103 229,843 480.940 537,946 616,037 15,952 44,349 10.^82 23 7,173 240 1,3431 94,367 35,360 12,792 65 10,059 17,079 1,799 5,945 133,379 71,641 163 20,986 30,608 1,975 7,938 209,335 231,084 19,375 42,958 32,205 2,908 10,169 220,375 272,289 25,912 47,211! 33,854 4,194 10,875 252,223 314,891 38,083 52,658 740 90,980 61,180 560 91,580 60,400 890 95,410 58,330 ,099 103,608 57,877 ,380 95,880 56,360 750 92,010 54,720 930 100,030 54,800 55,640125 910,111,720 57,300125 100104,140 58,180.126 960 95,650 729,250 738,740 749.470 769,908 761,870 765,200 778,070 798,550 794.420 806.420 596.690 604,570 611.920 629,215 618.670 618,440 628,700 643,790 635.940 650,290 25,960 26.220 27;770 31,047 28,710 26,500 27.720 32,830 30,130 25.720 4,530 11,390 220,290 4 10,910 225,170 5,250 5,810 229,050 5,590 10,434 236,953 5,830 6,750 228,310 6,620 3,460 224,450 7,190 8,210 227,880 6,820 5,680 240,390 7,010 4,350 237,650 6,850 7,950 249,520 1974—Jan. 30*.. 670,410 483.420 58,160128,830 103,410 807.470 648,500 31,630 6,400 Feb. 27*.. 675,950 489,290 56,950129,710 102,560 813,130 647.920 31,450 5,990 Mar. 27*. . of banks 26.551 37,502 52,150 93,643 99,832 113,128 7,225 9,006 20,864 86,118 104,704 117,084 Num ber 334,520 337,390 344,040 345,191 349.070 357,410 357,700 358.070 356,800 360,250 45.420 45,830 47,360 49,299 52,580 53,150 56,180 60,220 62,400 60,290 53,330 53,750 54.240 55,740 54,900 55,310 55,570 56,440 56,640 56,920^ 14,278 14,181 13,986 13,686 13,783 13,927 13,974 13,998 14,018 14,046 14,067 14,081 14,100 14,132 14,161 14,169 9,430 232,540 368,500 65,210 58.240 14.178 6,570 232,040 371,870 67.420 58,540' 14.178 Members of F.R. System: 1941— Dec. 1947—Dec. I960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 31 . 31. 31. 31. 31. 31. 43,521 18,021 19,539 5,961 97,846 32,628 57,914 7,304 165,916 99,933 49,106 16,579 365,940 253,936 45,399 66,604 405,087 277,717 47,633 79,738 465,788 329,548 48,715 87,524 23,113 32,845 45,756 81,500 86,189 96,566 132,060 216,577 465,644 511 ,353 585,125 61,717 122,528 193,029 384,596 425,380 482,124 10,385 12,353 16,437 29.142 30,612 31,958 140 50 1,639 1,733 2,549 3,561 1,709 1 ,176 5,287 6,460 8,427 9,024 37,136 12,347 4 5,886 80,609 28,340 54 8,464 112,393 57,273 130 17,398 168,032 179,229 18,578 34,100 174,385 209,406 25,046 37,279 197,817 239,763 36,357 41,228 6,619 6,923 6,174 5,766 5,727 5.704 1973— Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 28. 25. 30. 30. 25. 29. 26. 31. 28. 26. 470,997 476,739 480,394 490,533 489,240 494,200 498,322 504,120 507,176 524,142 87,073 87,357 88,141 88,545 89.096 90,016 91,108 92,879 92,276 94.097 77,719 78,219 81,169 88,227 82,091 78,475 85,802 96,251 89,652 79,946 573,564 580,412 587,722 604,414 597,607 600,202 611,359 628,710 624,258 632,728 462,997 468,385 473,623 486,770 478,417 478,273 486,975 499,093 491,405 502,194 24,505 24,744 26,139 29,311 27,121 24,972 26,182 31.142 28,522 24,000 3,895 4,242 4,621 4,879 5,121 5,911 6,480 9,407 9.167 4,511 8.167 5,423 2,701 6,740 4,601 3,359 6,554 170,540 173,671 176,766 182,439 175,351 172,082 175,016 185,308 182,931 192,431 41,533 41.806 42,096 43,098 42,539 42.807 42,972 43,618 43,759 43,983 5,683 5,695 5,703 5.705 5.706 5,712 5,717 5,722 5,735 5,734 7,621 178,457 279,498 61,586 44,874 5,084 178,732 281,271 63,862 45,108 5.743 5.743 1,762 41,298 15,699 10 6,844 10,654 61 9,734 54 1,325 92,975 34,882 12,615 149 20,628 16,921 1,667 5,932 132,533 71,348 30,233 1,874 7 , r ~ 208,037 231,132 19,149 42,427 31,824 2,792 10,150 219,102 271,835 25,629 46,731 33,366 4,113 10,820 250,693 313,830 37,556 52,166 13,426 13,398 13,119 13,502 13,602 13,721 1974—Jan. 30. Feb. 27. Mar. 27. Insured banks: Total: 1941—Dec. 1947—Dec. 1960—Dec. 19 7 0 -D ec. 1971-D ec. 1972—Dec. 31. 31. 31. 317 31. 31. 1973—Mar. 28. June 30. Oct. 17r National member: 1941—Dec. 31. 1947—Dec. 31. 1960—Dec. 31. 1970—Dec. 317 1971—Dec. 31. 1972—Dec. 31. 1973—Mar. 28. June 30. Oct. 17' 43,259 42,517 41,030 41,080 39,331 38,233 38,372 39,375 40,752 41,718 6,112 6,298 6,136 518,575 381,379 41,700 95,496 88,962 635,223 501,269 30,003 5,690 522,817 385,880 40,922 96,015 87,758 639,173 500,113 29,753 5,273 49,290 114,274 198,011 458,919 514,097 594,502 21,259 37,583 117,092 312,006 345,386 411,525 21,046 67,941 60,468 61,438 64,691 66,679 6,984 8,750 20,451 85,475 104,020 116,298 25,788 36,926 51,836 92,708 98,281 111,333 76,820 152,733 255,669 572,682 635,805 732,519 69,411 141,851 228,401 479,174 535,703 612,822 254,650 256,561 261,586 261,975 265,401 272,607 272,557 271,930 270,295 273,073 42,642 43,076 44,214 46,529 48,761 49,283 52,485 56,832 58,865 57,048 89,402 724,105 594,805 25,721 4,339 11,322 219,601 333,821 43,921 53,529 13,766 178,617 606,852 428,235 630,379 452,587 57,532120,261 101,716 762,250 625,316 30,559 5,446 10,408 235,174 343,729 48,413 55,240 13,842 52,497 127,473 101,205 780,190 633,180 28,443 6,571 5,821 234,549 257.798 55,906 56,727 13,923 647,971 468,000 11,725 12,039 3,806 27,571 65,280 21,428 38,674 5,178 107,546 63,694 32,712 11,140 271,760 187,554 34,203 50,004 302,756 206,758 36,386 59,612 350,743 247,041 37,185 66,516 14,977 22,024 28,675 56,028 59,191 67,390 43,433 88,182 139,261 230,764 376,318 434,810 39,458 6,786 82,023 8,375 35 124,911 9,829 611 982 283,663 18,051 314,085 17,511 1,828 359,319 19,096 2,155 354,999 254,447 100,552 53,789 426,035 345,341 14,134 2,285 369,856 270,188 31,6511 68,018 61,336 449,772 364,129 16,640 2,874 377,246 277,015 27,641 72,590 63,573 460,164 268,351 15,797 3,404 For notes see p. A-17. 340,665 346.865 351,223 360,908 360,813 365,951 368,842 371.866 374,148 388,327 68,121 4 1,088 23,262 8,322 45 795 53,541 19,278 111 3,265 71,660 39,546 4,740 122,298 137,592 13,100 6,014 128,441 160,291 18,169 6,646 146,800 184,622 26,706 3,640 5,409 11,098 24,r'~ 27,065 30,342 6,866 127,001 195,056 30,336 30,924 6,181 137,116 201,318 33,804 31,867 3,369 136,163 209,619 38,819 32,516 5,117 5,005 4,530 4,620 4,599 4,612 4,607 4,629 4,642 A 17 APRIL 1974 o COMMERCIAL BANKS PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (A m ounts in m illions o f dollars) Deposits Loans and investments Securities Classification by and FDIC insurance Total Loans l U.S. Treas ury Other 2 Total assets— Total Cash lia assets3 bilities and Total3 capital ac counts 4 Insured banks (cont.): State member: 1941—Dec. 3 1 .... 15,950 6,295 7,500 2,155 8,145 1947—Dec. 3 1 .... 32,566 11,200 19,240 2,125 10,822 1960—Dec. 3 1 .... 58,073 36,240 16,394 5,439 17,081 1970—Dec. 317... 94,760 66,963 11,196 16,600 25,472 1971—Dec. 3 1 .... 102,813 71,441 11,247 20,125 26,998 1972—Dec. 3 1 .... 115,426 82,889 11,530 21,008 29,176 1973—Mar. 2 8 ... . 117,745 87,421 June 3 0 .... 121,052 91,095 Oct. 17... . 125,715 95,056 Nonmember: 1941—Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 24,688 43,879 77,316 125,460 135,517 150,697 22,259 40,505 68,118 101,512 111,777 123,186 Interbank3 Other Bor row ings Demand De mand Time U.S. Govt. 3,'739 3,978 15 1,028 6,608 750 11,091 721 13,102 1,406 12,862 24,248 148,345 117,906 30, 126 9,429 | 20,527 26,891 155,017 123,016 559 25,491 158,250 123,123 30,< 10,511 12,671 11,505 1,495 2,005 2,604 621 381 2,022 1,720 2,412 2,378 Total capital ac counts Num ber of banks Time 5 Other 13,874 4,025 1 2,246 27,068 9,062 9 3,055 40.733 17,727 20 6,299 45.734 42,218 5,478 9,232 45,945 49,597 6,878 10,214 51,017 55,523 9,651 10,886 2,457 43,377 60,065 12,044 1,986 45,322 61,032 12,725 1,146 44,735 63,132 15,352 1,502 1,918 1,644 1,147 1,128 1,092 10,973 11,231 11,432 1,074 1,076 1,078 4,162 3,360 6 959 12,366 6,558 7 1,271 20,140 14,095 19 3,232 40,005 51,322 571 8,326 582 9,451 44,717 61,946 52,876 73,685 1,199 10,938 6,810 6,478 6,948 7,735 7,875 8,017 5,776 3,241 16,444 4,958 32,411 17,169 92,399 57,489 108,527 67,188 128,333 81,594 1,509 1,025 1,448 10.039 3,874 11,368 16.039 18,871 17,058 24,282 17,964 28,774 2,668 4,083 6,082 11,208 12,092 14,767 7,702 19,342 35,391 93,998 109,841 130,316 262 484 1,091 1,212 1,408 4 27 141 242 552 53 149 645 1,438 1,723 1,796 1973—Mar. 2 8 .... 134,306 86,368 June 3 0 ... . 139,471 91,304 Oct. 17... . 145,010 95,929 47,!?39 16,452 1 31,716 49,<381 11,365 149,725 131,558 13,490 157,461 138,171 12,141 161,783 141,706 1,076 1,248 1,141 559 567 563 1,999 49,223 78,701 2,241 52,735 81,379 1,305 53,650 85,047 1,541 1,884 1,735 11,631 12,143 12,778 8,085 8,137 8,203 Noninsured nonmember: 1941—Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 3 1 .... 3 1 .... 31... . 317... 31... . 31... . 8,708 20,691 39,114 106,457 123,970 147,013 129 3 1 .... 316... 3 1 .... 317... 3 1 .... 3 1 .... 1,457 2,009 1,498 3,079 3,147 4,865 455 474 550 2,132 2,224 3,731 761 1,280 535 304 239 349 241 255 413 642 684 785 763 576 314 934 1,551 1,794 2,283 2,643 1,883 4,365 5,130 7,073 1,872 2,251 1,443 2,570 2,923 3,775 177 159 375 380 488 185 132 101 116 81 1,2'.91 1,392 18 846 13 1,298 40 19 1,273 55 1,530 253 478 293 756 1,134 1.620 13 4 14 226 283 527 329 325 358 532 480 491 852 783 352 184 181 206 1973—June 3 0 .... 5,915 4,732 345 838 1,892 8,196 4,438 488 145 26 1,779 2,000 885 500 204 7,233 3,696 18,454 5,432 33,910 17,719 95,478 59,621 111,674 69,411 133,198 85,325 1,266 2,270 1,703 11,318 11,904 4,287 16,342 19,514 17,297 24,966 18,313 29,559 3,431 4,659 6,396 12,143 13,643 16,562 10,992 23,334 40,997 110,822 129,100 154,085 9.573 21,591 36,834 96,568 112,764 134,091 439 643 1,466 1,592 1,895 190 160 243 359 633 3,613 5,5(34 167 13,758 7,036 657 20,986 14,388 1,478 41,303 52,078 1,742 45,990 63,081 1,850 54,406 75,305 18 1,288 12 1,596 33 3,590 796 8,858 866 9,932 1,726 11,429 7,662 7,261 7,300 7,919 8,056 8,223 1973—June 3 0 .... 145,386 96,036 16,797 32,554 15,381 165,657 142,608 1,736 712 2,267 54,514 83,379 2,770 Total nonmember: 1941—Dec. 1947—Dec. 1960—Dec. 1970—Dec. 1971—Dec. 1972—Dec. 3 1 .... 3 1 .... 3 1 ... . 317... 3 1 ... . 3 1 .... 1 Loans to farmers directly guaranteed by CCC were reclassified as securities and Export-Import Bank portfolio fund participations were reclassified from loans to securities effective June 30, 1966. This reduced “Total loans” and increased “Other securities” by about $1 billion. “Total loans” include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are in cluded in “Federal funds sold, etc.,” on p. A-18. Effective June 30, 1971, Farmers Home Administration notes were classified as “Other securities” rather than “Loans.” As a result o f this change, approximately $300 million was transferred to “Other securities” for the period ending June 30, 1971, for all commercial banks. See also table (and notes) at the bottom o f p. A-26. 2 See first two paragraphs o f note 1. 3 Reciprocal balances excluded beginning with 1942. 4 Includes items not shown separately. See also note 1. 5 See third paragraph o f note 1 above. 6 Beginning with Dec. 31, 1947, the series was revised; for description, see note 4, p. 587, May 1964 Bulletin. 1 Figure takes into account the following changes, which became effective June 30, 1969: (1) inclusion o f consolidated reports (including figures for all bank-premises subsidiaries and other significant majorityowned domestic subsidiaries) and (2) reporting of figures for total loans 329 4-57 12,643 8,341 and for individual categories of securities on a gross basis—that is, before, deduction of valuation reserves—rather than net as previously reported. N ote.—Data are for all commercial banks in the United States (includ ing Alaska and Hawaii, beginning with 1959). Commercial banks represent all commercial banks, both member and nonmember; stock savings banks; and nondeposit trust companies. Figures for member banks before 1970 include mutual savings banks as follows: three before Jan. 1960 and two through Dec. 1960. Those banks are not included in insured commercial banks. Effective June 30, 1969, commercial banks and member banks exclude a small national bank in the Virgin Islands; also, member banks exclude, and noninsured commercial banks include, through June 30, 1970, a small member bank engaged exclusively in trust business; beginning 1973, excludes one national bank in Puerto Rico. Comparability of figures for classes of banks is affected somewhat by changes in F.R. membership, deposit insurance status, and by mergers etc. Figures are partly estimated except on call dates. For revisions in series before June 30, 1947, see July 1947 Bulletin, pp. 870-71. A 18 COMMERCIAL BANKS a APRIL 1974 LOANS AND INVESTMENTS BY CLASS OF BANK (In m illions o f dollars) Other loans * Class o f bank and call date T otal: 2 1947— D ec. 31. Total loan si and invest ments 116,284 Fed eral funds sold, etc.2 Total Investments For To U.S. Treasury purchasing financial securities 6 or carrying Com institutions Other, securities mer Agrito Real cial es in- Other cul diand tate tur To vidin al 5 bro Bills uals3 dus kers To and Banks Others Total certifi and others trial deal cates ers 38,057 18,167 1 ,6 6 0 830 1,220 1972— D ec. 31 io 599,367 26,662 388,593 132,701 14,314 11,316 4,491 1973— June 3 0 .. 636,294 27,652 429,667 150,390 15,985 7,366 4,752 115 9,393 5,723 69,221 State and local Other secu govt. rities 5 secu rities 9,982 6,034 53,205 6,585 23,402 98,382 87,232 10,171 67,028 9,853 27,685 108,199 94,416 11,020 57,877 3 ,7 2 9 89,504 91,312 2 7,579 29,787 AH insured: 1941— D ec. 31. . 49,290 1945— D ec. 31. . 121,809 1947— D ec. 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 40 49 114 4,773 4,505 21,046 3,159 16,899 3,651 3,333 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 1972— D ec. 31 io 594,502 25,584 385,941 131,422 14,287 11,165 4,460 6,115 23,277 98,204 86,912 10,099 66,679 1973— June 3 0 .. 630,379 26,162 426,425 148,825 15,967 7,295 4,727 9,060 27,574 108,008 94,060 10,909 57,532 Oct. 17. . 647,971 28,566 439,435 89,173 90,967 27,1 2 5 29,293 Member—Total: 1941— D ec. 31 .. 43,521 1945— D ec. 31. 107,183 1947— D ec. 31. . 97,846 18,021 8,671 972 594 598 22,775 8,949 855 3,133 3,378 32,628 16,962 1,046 811 1,065 1972— D ec. 31 io 466,169 19,961 309,969 112,110 8,495 10,863 3,870 1973— June 3 0 .. 490,908 19,705 341,577 127,194 9,467 7,103 4,122 Oct. 17. . 502,961 20,823 351,248 N ew York C ity : 11 1941— D ec. 31. . 12,896 1945— D ec. 3 1 .. 26,143 1947— D ec. 31. . 20,393 4,072 2,807 7,334 3,044 7,179 5,361 1972— D ec. 31 io 75,034 79,212 1973— June 30, Oct. 17. . 81,550 812 57,901 27,864 1,394 64,033 31 , 1 1,578 65,392 7,057 4,563 2,760 5,931 5,088 732 954 760 1,333 1,801 1,418 211 73 52 233 87 1972— D ec. 31 io 21,362 1973— June 3 0 .. 24,566 Oct. 1 7 .. 25,802 718 15,576 7,851 1,097 18,549 10,034 1,229 19,221 140 1,330 129 843 282 313 O ther large banks:n 15,347 1941— D ec. 31 1945— D ec. 3 1 .. 40,108 1947— D ec. 3 1 .. 36,040 7,105 3,456 8,514 3,661 13,449 7,088 C itv o f C hicago: 11 1941— D ec. 3 1 .. 1945— D ec. 31 .. 1947— D ec. 31. . 39 47 113 5,783 22,026 73,131 64,490 9,201 48,715 8,634 26,258 79,840 69,006 9,953 41,080 412 169 2,453 1,172 545 267 48 300 205 225 3,653 19,539 3,494 971 3,007 15,561 3,090 2,871 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3 , 1 0 5 32 26 93 123 80 111 522 7,265 311 1,623 5,331 287 272 17,574 3,910 3,325 10,339 564 238 11,972 1,642 558 9,772 841 2,271 6,413 5,789 5,225 2,390 5,696 772 3,776 8,776 6,352 5,158 2,676 4,661 114 194 427 1,503 170 484 22 36 46 341 2,780 598 3,558 4 17 15 95 51 149 1,430 40 4,213 26 2,890 1972— D ec. 31 io 198,156 1973— June 3 0 .. 206,404 Oct. 1 7 .. 211,357 5,890 1,676 5,596 1,484 10,199 3,096 8,504 119,690 31,911 6,327 7,882 129,813 34,824 7,015 8,806 134,007 Nonmcmber: 1947— Dec. 31 .. 18,454 1972— D ec. 31 io 133,198 1973— June 30 145,386 659 648 818 5,432 1,205 20 42 23 452 1,040 282 1,253 614 6,701 78,624 20,591 5,819 7,947 88,089 23,196 6,518 183 471 227 256 1,600 367 153 1,022 749 1,864 248 2,274 803 622 630 1,219 729 606 638 830 629 604 182 181 213 193 204 185 375 409 1,066 1,138 648 1,873 2,820 1 ,1 4 6 1 ,2 0 7 721 1 ,7 1 5 2 ,7 9 6 1,527 1,459 3,147 6,467 751 5,421 1,508 295 855 387 29,552 8,016 5,653 15,883 1,969 351 20,196 2,731 1,901 15,563 1,823 1,881 3,827 2,266 956 820 1,126 916 1,342 1,053 24,049 4,523 24,435 4,710 1,528 4,377 110 481 3,787 1,222 1,028 707 359 26,999 5,732 4,544 16,722 1,342 I,067 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 455 2,565 39,262 35,458 2,220 24,830 657 2,484 42,638 38,284 2,376 21,638 156 453 263 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, such securities were included in loans—for the most part in loans to “ Banks.” Prior to Dec. 1965, Federal funds sold were included with “Total” loans and loans to “Banks.” 3 See table (and notes), Deposits Accum ulated fo r Paym ent o f Personal Loans, p. A-26. 2 4 5 17,884 19,172 9,107 1,518 7,224 1 ,900 1972— D ec. 31 io 171,618 9,927 116,802 44,483 1,977 2,024 1,707 2,716 10,268 27,014 22,669 3,943 16,316 1973— June 3 0 .. 180,726 9,333 129,182 50,457 2,241 1 ,415 1 ,784 3,603 11,440 29,705 24,357 4,181 13,066 Oct. 1 7 .. 184,252 9,210 132,627 A ll other member :n 1941— Dec. 31 .. 12,518 1945— D ec. 3 1 .. 35,002 1947— D ec. 31 .. 36,324 69,640 69,374 1,061 109 11,318 2,179 969 18,313 1.377 25,250 22,741 I ,427 28,359 25,410 I ,067 16,797 33,664 II,468 34,919 12,153 1,219 7,920 1,078 19,864 9,695 21 ,939 10,615 4 Breakdowns of loan, investment, and deposit classifications are not available before 1947; summary figures for 1941 appear in the table on pp. A -16—A -17. 5 Beginning with June 30, 1966, loans to farmers directly guaranteed by CCC were reclassified as “Other securities,” and Export-Import Bank portfolio fund participations were reclassified from loans to “Other securities.” This increased “Other securities” by about $1 billion. 6 Beginning with Dec. 31, 1965, components shown at par rather than at book value; they do not add to the total (shown at book value) and are not entirely comparable with prior figures. See also note 10. Notes continued on opposite page. APRIL 1974 □ COMMERCIAL BANKS A 19 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions o f dollars) Dem and deposits D e Bal mand ances with de posits d o m estic ad bank s7 justed 8 Tim e deposits R e serves with F.R . Banks Cur rency and coin 17,796 2,2 1 6 10,216 87,123 11,362 1,430 1,343 6 ,7 9 9 2,581 84,9 8 7 240 1972— D ec. 31 10 . 2 6 ,0 70 1973— June 3 0 . . . 25 ,143 8 ,666 7,6 6 9 32,185 212,121 29,842 202,109 29,971 26,978 3,883 10,875 4 ,069 10,434 18,588 18,166 11,685 11,162 221 ,9 5 0 207,625 4 ,1 9 4 5 ,5 9 0 12,396 15,810 17,796 1,358 1,829 2 ,1 4 5 8 ,5 7 0 11,075 9 ,7 3 6 37,845 74,722 85,751 9,823 12,566 11,236 673 1,762 1,248 23 ,7 4 0 1,379 1,325 3 ,6 7 7 5 ,098 6 ,6 9 2 1,077 2 ,5 8 5 2,559 3 6 ,5 4 4 72,593 83,723 158 70 54 1972— D ec. 3 1 1 0 . 26 ,0 7 0 1973— June 3 0 . . . 25,1 43 Oct. 1 7 . . . 30,998 8 ,637 7,658 9,231 30,734 210,287 28,238 200,083 23 ,9 6 0 203,931 29,731 26,713 24,626 3,635 10,820 3,846 10,408 3,817 5,821 18,459 18,016 15,620 11,177 10,473 9,9 0 5 221,0 5 7 206,685 209,023 4 ,1 1 3 5 ,4 4 6 6,571 33,754 64 ,184 73,528 9 ,7 1 4 12,333 10,978 671 1,709 1,243 22 ,179 1,375 1,176 3 ,0 6 6 4 ,2 4 0 5 ,5 0 4 1,009 2 ,4 5 0 2,401 33,061 6 2 ,9 5 0 72 ,7 0 4 140 64 50 19,396 158,464 18,004 148,306 16,011 150,944 28,521 2 5 ,6 8 4 23,667 3,437 3,627 3,634 9 ,0 2 4 8,167 4,515 13,544 13,251 11,213 9 ,5 0 3 8,781 8,3 8 2 174,770 160,407 161,303 3 ,5 6 2 4 ,8 7 9 6 ,0 0 8 Class o f bank and call date T o ta l: 3 1947— D ec. 3 1 . . . . All insured: 1941— D ec. 3 1 . . . . 1945— D ec. 3 1 .. .. 1947— D ec. 3 1 . . . . Member— T otal: 1941— D ec. 3 1 . . . . I 945 — D ec. 3 1 .. .. 1947— D ec. 3 1 . . . . 12,396 15,811 17,797 1,087 1,438 1,672 1972— D ec. 31 10 . 2 6 ,0 70 1973— June 3 0 . . . 25,143 Oct. 1 7 . . . 30,998 6 ,582 5,7 5 4 7,0 1 8 6,246 7,117 6 ,2 7 0 Interbank D o For m estic7 eign 9 U .S. Govt. State and local govt. Certi fied and offi cers’ checks, etc. IPC U .S. Govt. State Inter and and bank Postal local Sav govt. ings New York C ity : 11 1941— D ec. 3 1 ___ 1945— D ec. 3 1 . . . . 1947— D ec. 3 1 . . . . 5,105 4 ,015 4 ,6 3 9 93 111 151 141 78 70 10,761 15,065 16,653 3,595 3,535 3 ,236 607 1,105 1,217 866 6 ,9 4 0 267 319 237 290 450 1,338 1,105 11,282 15,712 17,646 6 17 12 1972— D ec. 31 10 . 1973— June 3 0 . . . Oct. 1 7 . . . 5,6 95 4,981 5,972 508 467 581 4 ,8 5 4 5,557 4 ,5 6 7 23,271 20,478 2 2 ,240 12,532 12,679 10,617 2 ,5 6 2 2,661 2,6 5 6 1,418 1,115 644 741 646 497 3,5 9 2 3,403 3,358 3 1 ,0 4 0 26 ,5 5 8 25,6 1 5 1,833 2,7 7 3 3,809 1,021 942 1,070 43 36 30 298 200 175 2,215 3,153 3,737 1,027 1,292 1,196 8 20 21 127 1,552 72 233 237 285 34 66 63 2 ,1 5 2 3 ,1 6 0 3,853 1972—D ec. 31 10 . 1973— June 3 0 . . . Oct. 1 7 . . . 1,496 1 ,512 1,576 152 126 124 173 138 333 5,783 5,827 5,136 1,516 1 ,206 1,303 99 117 137 509 299 141 223 225 314 264 229 206 6,8 9 9 6,9 1 8 6 ,5 4 2 Other large banks : 11 1941— D ec. 31 . . . . 1945— D ec. 31 . . . . 1947— D ec. 3 1 ___ 4,0 6 0 6,3 2 6 7,0 9 5 425 494 562 2 ,5 9 0 11, 117 2,1 7 4 22,372 2,125 2 5 ,7 1 4 4 ,302 6,307 5,4 9 7 54 491 110 8,221 405 131 1,144 1,763 2 ,2 8 2 286 611 705 1972— D ec. 31 10 . 10,085 1973— June 3 0 . . . 9 ,345 Oct. 1 7 . . . 13,367 2 ,1 1 4 1 ,788 2 ,2 3 4 4,688 4,0 9 9 3,900 52,813 49,3 4 4 4 9 ,1 9 0 10,426 8,446 8,408 707 3 ,8 6 0 731 2,9 8 8 742 1,768 3 ,8 5 4 3 ,9 5 4 3 ,1 0 7 2 ,2 1 0 4 ,5 2 7 4 ,9 9 3 526 796 929 3 ,216 4 ,665 3 ,9 0 0 9,661 23,595 2 7 ,4 2 4 790 1,199 1,049 225 2 8 5,465 432 7 1972— D ec. 31 10 . 8 ,7 9 4 1973— June 3 0 . . . 9 ,3 0 5 Oct. 1 7 . . . 10,083 3,807 3,373 4,0 7 9 9,681 8,211 7,211 76,597 72,6 5 8 74,378 4 ,0 4 7 3,353 3 ,3 4 0 70 3,238 118 3,766 99 1,963 C ity o f C h icago: 11 1941— D ec. 3 1 ___ 1945— D ec. 3 1 ___ 1947— D ec. 3 1 ___ A ll other member : 11 1941— D ec. 3 1 ___ 1945— D ec 31 . . . . 1947— D ec. 31 . . . . N onm em ber:3 1947— D ec. 31 1972— D ec. 31 10 . 1973— June 30 866 34 ,3 8 3 65 10,059 606 37,161 277,683 38,083 52,658 730 40 ,7 3 4 304,265 49,299 5 5 ,7 4 0 59 103 111 492 496 826 15,146 2 9 ,2 7 7 33 ,9 4 6 10 6 ,8 4 4 215 8,671 61 9 ,7 3 4 606 37,086 276,138 37,556 5 2 ,1 6 6 730 40,655 3 0 2,344 48,413 5 5 ,2 4 0 580 4 2 ,9 1 4 3 1 4,304 55,906 5 6 ,7 2 6 50 99 105 418 399 693 11,878 2 3 ,7 1 2 27,5 4 2 4 5 ,8 8 6 208 7 ,5 8 9 54 8 ,4 6 4 468 28,553 211,124 36,357 41 ,2 2 8 569 30,812 230,969 46,529 43 ,0 9 8 427 32,398 239,926 54,171 4 3 ,9 4 8 10 12 29 20 14 10 2 ,5 2 2 20 2,0 7 5 31 2,371 2 9 160 392 459 95 224 2 847 930 1,360 11,127 22,281 26,003 104 30 22 20 38 45 243 160 332 3,075 2 ,7 2 8 2 ,5 8 7 6 4 ,4 4 7 5 8 ,1 9 4 58,6 0 4 1,173 1 ,371 1,388 1 ,3 7 0 2 ,0 0 4 2 ,6 4 7 239 435 528 8 ,5 0 0 2 1 ,7 9 7 2 5 ,203 30 17 17 8 ,7 2 6 8 ,4 2 6 7 ,2 9 5 2,571 2,421 2,231 72,3 8 4 68 ,7 3 7 7 0 ,5 4 2 395 342 352 181 11,811 158 13,145 233 13,167 31 52 45 146 219 337 778 1,206 1,418 195 30 1 648 2 ,1 2 0 2 ,2 5 9 2 6 ,1 9 6 9 ,5 0 2 8 ,0 4 2 30,788 11,597 8 ,2 8 7 3 1 ,522 13,260 8 ,4 0 5 476 719 902 288 377 426 9 ,2 3 7 3,008 11,357 4 ,1 4 6 11,656 5 ,8 2 7 4 ,5 4 2 9 ,5 6 3 11,045 1,891 1 ,947 1,988 1,967 2 2 ,5 6 6 1 2 ,8 4 4 74 ,4 4 9 19,392 14,687 81,531 24,032 15,260 8 6 ,2 1 4 27,830 15,450 6 ,0 8 2 12,224 14,177 4 11 23 1 ,982 2 ,5 2 5 2 ,9 3 4 181 13,373 101,243 4 ,4 5 5 16,608 167 14,661 107,293 6 ,7 5 3 17,604 161 1 5 ,500 110,534 7 ,2 5 4 18,103 544 3 ,947 13,595 385 55 167 1,295 180 12,284 190 6 172 2,0 8 4 1,915 12,789 11,838 53,658 53,803 1,449 1,294 446 442 1,851 2,267 5 ,0 4 4 4,915 2 ,1 8 2 2,381 4 7 ,1 8 0 4 7 ,2 1 9 633 712 138 162 8 ,6 0 8 9 ,9 2 2 7 Beginning with 1942, excludes reciprocal bank balances. 8 Through 1960 demand deposits other than interbank and U.S. G ovt., less cash items in process o f collection; beginning with 1961, demand deposits other than dom estic commercial interbank and U.S. G ovt., less cash items in process o f collection. 9 For reclassification o f certain deposits in 1961, see note 6, p. 589, M ay 1964 Bulletin. 10 Beginning June 30, 1969, reflects (1) inclusion o f consolidated reports (including figures for all bank-premises subsidiaries and other significant majority-owned dom estic 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. 11 Beginning N ov. 9 ,1 9 7 2 , designation o f banks as reserve city banks for reserve-requirement purposes has been based on size o f bank (net demand deposits o f more than $400 m illion), as described in the Bulletin for July 1972, p . 626. Categories shown here as “Large” and “A ll other” 111 IP C 3 Bor C api tal row ac ings counts 6,8 5 8 12 1,596 6 6 ,5 5 9 1,726 11,429 73,295 2 ,7 7 0 12,643 parallel the previous “ Reserve city” and “ C ountry” categories, respectively (hence the series are continuous over time). N o t e . — D ata are for 4II com m ercial banks in the U nited States; member banks in U .S. possessions were included through 1968 and then excluded. For the period June 1941— June 1962 m em ber banks include mutual savings banks as follows: three before Jan. 1960, two through D ec. 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 em ber bank for the period June 30, 1969—June 30, 1970. Com parability o f figures for classes o f banks is affected som ewhat 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 20 WEEKLY REPORTING BANKS □ APRIL 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In m illions o f dollars) Loans Federal funds sold, etc.i Wednesday Other To brokers and dealers involving— Total loans and invest ments Total To com mer cial banks U.S. Treas ury se curi ties For puirchasing or carryinig securities To others Total Other se curi ties 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. COS., etc. Other Large banks — Total 1973 Mar. 7............... 14............... 21............... 28............... 333,027 332,045 333,715 333,667 15,117 12,848 12,983 12,561 13,177 11,495 10,681 11,436 1,180 933 1,412 837 528 322 796 171 232 98 94 117 237,082 238,619 240,045 240,533 97,499 98,517 99,724 99,823 3,045 3,056 3,058 3,073 1,083 641 880 712 7,221 7,254 6,942 6,793 265 239 243 241 2,935 2,937 2,926 2,926 7,791 7,874 7,714 7,926 13,448 13,776 14,052 14,320 1974 Feb. 6 ............. 1 3 20............... 27............... 371,413 370,368 371,217 372,066 16,030 16,725 16,639 16,394 14,046 15,093 15,069 14,577 1,340 1,035 984 1,216 415 394 353 366 229 203 233 235 268,061 267,646 267,623 268,766 110,019 110,179 110,179 110,740 3,747 3,741 3,740 3,752 1,161 734 589 992 5,026 4,805 4,987 5,272 154 150 147 150 2,738 2,751 2,747 2,750 8,103 7,909 7,928 8,125 18,025 18,137 18.221 18,164 Mar. 6*............. 13*............. 20*............. 27*............. 375,500 374,820 375,547 377,992 16,779 15,571 14,990 15,502 15,067 13,994 13,466 13,668 1,123 1,050 993 1,254 342 311 303 294 247 216 228 286 270.387 270,643 273.387 275,500 111,761 112,740 114,777 115,971 3,784 3,801 3,792 3,788 1,061 595 579 660 5,136 4,898 4,747 4,646 147 144 140 140 2,760 2,784 2,774 2,778 8,290 8,394 8,452 8,668 18,137 18,363 18,404 18,515 70,302 70,230 71,266 70,687 1,164 1,029 1,535 1,509 1,090 905 1,459 1,433 43 103 50 60 31 21 26 16 56,098 56,428 56,508 56,378 28,183 28,556 28,850 28,688 55 57 56 56 950 498 714 589 4,395 4,555 4,235 4,124 43 42 43 45 658 658 649 649 2,359 2,371 2,196 2,397 4,041 4, 196 4,236 4,363 6 ............... 1 3 2 0............... 2 7 79,748 78,743 79,370 79,661 1,043 1,067 1,514 1,001 1,012 1,032 1,455 999 26 26 49 5 10 2 63,188 62,572 62,218 63,137 31,558 31,504 31,380 31,601 142 138 135 136 1,047 614 489 887 3,120 2,861 2,939 3,240 47 42 41 40 616 622 613 615 2,637 2,532 2,552 2,714 6,217 6,219 6,269 6,146 6*............. 13*............. 20*............. 27*.............. 81,270 80,347 80,859 81,742 1,076 1,053 1,079 1,424 986 1,031 1,070 1,356 10 14 5 8 90 8 4 50 64,179 63,720 64,511 65,363 31,982 32,486 33,021 33,564 155 153 151 146 965 527 472 564 3,157 2,911 2,870 2,726 39 39 38 37 611 607 604 606 2,819 2,948 2,889 3,024 6,203 6,229 6,281 6,306 262,725 261,815 262,449 262,980 13,953 11,819 11,448 11,052 12,087 10,590 9,222 10,003 1,137 830 1,362 777 528 322 796 171 201 77 68 101 180,984 182,191 183,537 184,155 69,316 69,961 70,874 71,135 2,990 2,999 3,002 3,017 133 143 166 123 2,826 2,699 2,707 2,669 222 197 200 196 2,277 2,279 2,277 2,277 5,432 5,503 5,518 5,529 9,407 9,580 9,816 9,957 N ew York C ity 1973 Mar. 7............... 1 4 21............... 28.. . ........ 1974 Feb. Mar. 9 Outside N ew York C ity 1973 Mar. 7................ 1 4 21................ 2 8 1974 Feb. 6 ................ 13................ 20................ 27................. 291,665 291,625 291,847 292,405 14,987 15,658 15,125 15,393 13,034 14,061 13,614 13,578 1,314 1,009 935 1,216 415 385 353 366 224 203 223 233 204,873 205,074 205,405 205,629 78,461 78,675 78,799 79,139 3,605 3,603 3,605 3,616 114 120 100 105 1,906 1,944 2,048 2,032 107 108 106 110 2,122 2,129 2,134 2,135 5,466 5,377 5,376 5,411 11,808 11,918 11,952 12,018 Mar. 6*.............. 13*.............. 20*.............. 27*.............. 294,230 294,473 294,688 296,250 15,703 14,518 13,911 14,078 14,081 12,963 12,396 12,312 1,123 1,050 993 1,244 342 297 298 286 157 208 224 236 206,208 206,923 208,876 210,137 79,779 80,254 81.756 82,407 3,629 3,648 3,641 3,642 96 68 107 96 1,979 1,987 1,877 1,920 108 105 102 103 2,149 2,177 2,170 2,172 5,471 5,446 5,563 5,644 11,934 12,134 12,123 12,209 For notes see p. A-24. APRIL 1974 □ WEEKLY REPORTING BANKS A 21 LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In m illions o f dollars) Investments U.S. Treasury securities Notes and bonds maturing— Wednesday For eign govts.2 All other Total Bills Certif icates Within 1 yr. 1 to 5 yrs. After 5 yrs. Large banks — Total 1973 1,258 1,255 1,273 1,283 18.819 18.820 18,594 18,680 25,346 25,178 25,265 25,371 55 55 55 55 1,455 1,490 1,380 1,438 19,880 20,337 20,301 19,933 25,527 25,236 25,616 25,328 55 55 56 56; 1,468 1,466 1,578 1,629 20,190 19,782 19,594 19,554 25,989 25,717 24,856 24,953 4,465 4,441 4,619 4,911 3,615 3,600 3,771 3, 15,065 14,963 14,762 14,603 2,201 2,174 2,113 2,049 .........................Mar. 7 ...................................14 ...................................21 ...................................28 5,635 4,936 4,836 5,; 4,679 4,721 4,240 4,262 11,699 11,627 12,240 12,112 3,341 3,253 4,200 4,118 .........................Feb. 6 ...................................13 ...................................20 ...................................27 5,440 5,277 4,601 4,717 4,338 4,346 4,387 4,287 11,993 11,920 11,772 11,782 4,218 4,174 4,096 4,167 .........................Mar. 6* ................................... 13* ...................................20* ...................................27* 1974 N ew York C ity 1973 5. 738 739 739 741 3,899 3,853 3,734 3,737 4,032 4,078 4,237 4,204 959 1,125 1,275 1,410 508 479 525 560 2,280 2,214 2,242 2,087 285 260 195 147 .........................Mar. 7 ...................................14 ...................................21 ...................................28 6, 6. 6, 6, 689 717 641 714 4,430 4,791 4,652 4,459 5,128 5,054 5,250 5,037 1,821 1,702 1,310 1,271 700 711 553 543 1,545 1,549 1,912 1,851 1,062 1,092 1,475 1,372 .........................Feb. 6 ................................... 13 ...................................20 ...................................27 6, 6, 6, 6, 740 729 788 822 4,680 4,307 4,323 4,326 5,297 5,027 4,791 4,819 1,641 1,377 1,239 1,284 535 587 561 539 1,819 1,754 1,701 1,690 1,302 1,309 1,290 1,306 .........................Mar. 6* ................................... 13* ................................... 20* ................................... 27* 5. 5. 5: 1974 Outside N ew York C ity 1973 41, 42, 42, 42, 520 516 534 542 14,920 14,967 14,860 14,943 21,314 49, 49, 49, 49, 766 773 739 724 49, 49, 49, 49, 728 737 790 807 21,028 21,167 3,506 3,316 3,344 3,501 3,107 3,121 3,246 3,248 12,785 12,749 12,520 12,516 1,916 1,914 1,918 1,902 15,450 15,546 15,649 15.474 20,399 20,182 20,366 20,291 3,987 3,933 3,626 3,565 3,979 4,010 3,687 3,719 10,154 10,078 10,328 10,261 2,279 2,161 2,725 2,746 .Feb. 6 ...........13 15,510 15.475 15,271 15,228 20,692 20,690 20,065 20,134 3,799 3,900 3,362 3,433 3,803 3,759 3,826 3,748 10,174 10,166 10,071 10,092 2,916 2,865 2,806 2,861 .Mar. 6* ...........13* 21,100 . Mar. 7 ...........14 ..........21 ...........28 1974 ..........20 ...........27 ..........20* ...........27* A 22 WEEKLY REPORTING BANKS □ APRIL 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Investments (cont.) Other securities Wednesday Total Obligations of State and political subdivisions Tax war rants3 All other Other bonds, corp. stock, and securities Certif. of partici pation4 Cash items in process of collec tion Re serves with F.R. Banks Cur 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 other5 Large banks — Total 1973 Mar. 7............. 14 ........................... 21............. 28............. Feb. 55,482 55,400 55,422 55,202 8,622 8,632 8,516 8,349 38,193 38,123 38,292 38,317 1,730 1,765 1,744 1,738 6,937 6,880 6,870 6,798 28,430 29,496 26,896 26,884 17,895 20,192 19,178 20,321 3,648 3,920 3,926 4,037 9,287 9,050 8,571 9,260 1,220 1,232 1,240 1,248 18,847 18,942 18,517 18,889 412,354 414,877 412,043 414,306 6 .............................. 61,795 60,761 61,339 61,578 7,637 7,192 7,250 7,178 40,520 40,107 40,356 40,684 2,454 2,418 2,434 2,417 11,184 11,044 11.299 11.299 31,677 37,856 38,013 31,481 21,644 24,081 23,935 21,251 4,016 4,366 4,467 4,459 11,891 13,788 12,924 11,621 1.429 1,426 1.429 1.429 21,193 21,359 21,610 21,713 463,263 473,244 473,595 464,020 6*........................... 62,345 62,889 62,314 62,037 7,530 7,823 7,600 7,393 41,155 41,149 40,927 40,975 2,433 2,532 2,541 2,486 11,227 11,385 11,246 11,183 33,386 32,843 32,900 32,855 21,939 23,145 22,992 20,769 3,966 4,341 4,300 4,421 11,843 11,417 12,389 12,137 1,446 1,449 1,465 1,464 22,018 22,275 22,362 22,575 470,098 470,290 471,955 472,213 9,008 8,695 8,986 8,596 2,166 2,052 2,060 1,927 5,331 5,136 5,446 5,248 510 525 510 510 1,001 982 970 911 9,367 10,341 8,810 9,824 4,966 4,955 4,334 4,958 451 483 466 478 3,858 3,670 3,213 3,869 609 611 609 611 6,030 6,073 5,972 6,165 95,583 96,363 94,670 96,592 1974 Mar. 1 3 20............. 2 7 13*............ 20*............ 27*............ New York City 1973 Mar. 7............. 1 4 21............. 2 8 Feb. 6 ............................. 10,389 10,050 10,388 10,486 2,230 2,039 2,107 2,130 5,388 5,286 5,455 5,579 590 581 581 572 2,181 2,144 2,245 11,692 16,318 13,391 11,765 5,815 7,786 7,307 6,021 486 529 511 499 5,792 7,423 6,756 656 656 660 660 5,941 5,795 6,298 6,224 110,130 117,250 114,293 110,342 6*........................... 10,718 10,547 10,478 10,136 2,342 2,296 2,254 2,090 5,740 5,566 5,556 5,423 567 567 576 562 2,069 2,118 2,092 2,061 11,999 12,289 12,501 13,583 6,720 6,232 6,306 4,859 476 499 484 500 5,666 5,631 6,394 6,313 675 678 680 679 6,397 6,704 6,922 6,987 113,203 112,380 114,146 114,663 46,474 46,705 46,436 46,606 6.456 6,580 6.456 6,422 32,862 32,987 32,846 33,069 1,220 1,240 1,234 1,228 5,936 5,898 5,900 5,887 19,063 19,155 18,086 17,060 12,929 15,237 14,844 15,363 3,197 3,437 3,460 3,559 5,429 5,380 5,358 5,391 611 621 631 637 12,817 12,869 12,545 12,724 316,771 318,514 317,373 317,714 1974 Mar. 1 3 20............. 2 7 13*............ 20*............ 27*............ 2,205 5,512 Outside New York City 1973 Mar. 7............. 1 4 21............. 2 8 Feb. 6............................. 51,406 50,711 50,951 51,092 5,407 5,153 5,143 5,048 35,132 34,821 34,901 35,105 1,864 1,837 1,853 1,845 9,003 8,900 9,054 9,094 19,985 21,538 24,622 19,716 15,829 16,295 16,628 15,230 3,530 3,837 3,956 3,960 6,099 6,365 6,168 6,109 773 770 769 769 15,252 15,564 15,312 15,489 353,133 355,994 359,302 353,678 6*........................... 51,627 52,342 51,836 51,901 5,188 5,527 5,346 5,303 35,415 35,583 35,371 35,552 1,866 1.965 1.965 1,924 9,158 9,267 9,154 9,122 21,387 20,554 20,399 19,272 15,219 16,913 16,686 15,910 3,490 3,842 3,816 3,921 6,177 5,786 5,995 5,824 771 771 785 785 15,621 15,571 15,440 15,588 356,895 357,910 357,809 357,550 1974 Mar. 13............. 20............. 27............. 13*............ 20*............ 27*............ For notes see p. A-24. APRIL 1974 □ WEEKLY REPORTING BANKS A 23 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions o f dollars) Deposits Demand Time and savings Domestic interbank Total IPC State-, and polit ical sub divi sions U.S. Govt. Com mer cial Foreign IPC Com Mutual sav Govts., mer etc. 2 ings cial banks Certi fied and offi cers’ checks Total6 Sav ings Other States and polit ical sub divi sions D o mes tic inter bank Wednesday For eign govts.2 Large banks — Total 1973 150,263 150,969 147,837 149,419 106,539 109,812 105,660 105,757 6,420 5,880 6,393 6,582 6,286 20,240 4,991 19,733 6,961 18,777 7,258 19,072 698 674 679 653 864 909 799 857 3,084 2,711 3,061 3,127 6,132 6,259 5,507 6,113 170,258 172,379 173,107 174,299 58,078 58,174 58,297 58,466 80,035 81,782 81,860 82,753 21,436 21,735 21,825 21,789 2,990 2,954 3,175 3,323 7,076 7,109 7,338 7,337 157,344 163,593 162,933 155,686 107,999 111,106 113,258 109,162 6,424 6,370 6,594 6,011 4,704 3,469 2,613 3,245 23,545 26,603 25,572 22,786 769 655 685 594 1,552 1,139 1,313 1,224 4,160 4,351 4,831 4,481 8,191 9,900 8,067 8,183 192,629 192,604 192.453 192,830 56,912 56,955 57,055 57,145 98,499 98,618 98,458 99,017 23,514 23,356 23,343 23,464 5,133 4,968 4,895 4,650 7,988 8,106 8,073 7,906 ...............Feb. 6 ..........................13 ..........................20 ..........................27 157,794 156,244 158,291 158,601 110,728 111,911 110,479 111,173 6,470 6,057 6,095 6,514 2,366 1,940 4,044 3,437 23,742 22,313 23,365 22,960 694 732 584 610 1,102 1,059 1,067 1,216 4.523 4,492 4.523 4,679 8,169 7,740 8,134 8,012 193,068 57,418 194,081 57,652 194,171 57,904 195,873 58,270 98,932 99,901 99,788 100,964 23,509 23,528 23,535 23,532 4,700 4,720 4,767 4,885 7,890 7,648 7,541 7,554 ...............Mar. 6* ..........................13* ..........................20* ..........................27* ...............Mar. 7 ..........................14 ..........................21 ..........................28 1974 N ew York C ity 1973 39,378 40,104 38,291 40,227 23,000 24,059 22,461 22,941 463 338 468 516 46,027 50,829 48,138 45,718 23,287 23,975 24,683 23,782 45,931 45,370 46,713 48,082 23,924 23,929 23,975 25,132 1,203 888 1.725 1.726 8,619 8,814 8,143 8,849 360 341 356 346 726 774 656 709 2,139 1,873 2,160 2,245 2,868 3,017 2,322 2,895 30,957 31,654 31,551 31,850 5,497 5,499 5,482 5,494 18,000 18,637 18,344 18,581 2,190 2,249 2,298 2,213 1,622 1,620 1,727 1,869 3,541 3,543 3,609 3,597 ...............Mar. 7 ..........................14 ..........................21 .......................... 28 322 345 386 319 962 11,984 608 14,909 335 13,047 599 11,600 432 332 346 299 1,345 924 1,079 995 3,078 3,244 3,588 3,347 4,617 6,492 4,674 4,777 35,145 34,851 34,561 34,437 5,010 5,015 5,026 5,035 20,932 20,800 20,705 20,792 1,798 1,680 1,590 1,648 3,255 3,166 3,106 2,907 4,067 4,099 4,015 3,938 ...............Feb. 6 .......................... 13 ..........................20 ..........................27 490 487 440 646 429 11,847 385 11,458 804 12,239 695 12,000 299 297 281 311 872 839 859 1,004 3,370 3,334 3,392 3,496 4,700 4,641 4,723 4,798 34,633 35,085 35,079 35,552 5,037 5,062 5,078 5,126 20,798 21,221 21,155 21,453 1,746 1,808 1,890 1,899 2,946 2,964 3,028 3,110 3,985 3,896 3,786 3,815 ...............Mar. 6* ..........................13* .......................... 20* .......................... 27* 1974 Outside N ew York C ity 1973 110,885 110,865 109,546 109,192 83,539 85,753 83,199 82,816 5,957 5,542 5,925 6,066 5,083 4,103 5,236 5,532 11,621 10,919 10,634 10,223 338 333 323 307 138 135 143 148 945 838 901 882 111 ,317 112,764 114,795 109,968 84,712 87,131 88,575 85,380 6,102 6,025 6,208 5,692 3,742 2,861 2,278 2,646 11,561 11,694 12,525 11,186 337 323 339 295 207 215 234 229 1,082 1,107 1,243 1,134 111,863 110,874 111,578 110,519 86,804 87,982 86,504 86,041 5,980 5,570 5,655 5,868 1,937 1,555 3,240 2,742 11,895 10,855 11,126 10,960 395 435 303 299 230 220 208 212 1,153 1,158 1,131 1,183 3,264 139,301 3,242 140,725 3,185 141,556 3,218 142,449 52,581 52,675 52,815 52,972 62,035 63,145 63,516 64,172 19,246 19,486 19,527 19,576 1,368 1,334 1,448 1,454 3,535 , ...............Mar. 7 3,566 . ..........................14 3,729 ..........................21 3,740 . ..........................28 3,574 3,408 3,393 3,406 157,484 157,753 157,892 158,393 51,902 51,940 52,029 52,110 77,567 77,818 77,753 78,225 21,716 21,676 21,753 21,816 1,878 1,802 1,789 1,743 3,921 4,007 4,058 . 3,968 . .Feb. 6 ........... 13 3,469 3,099 3,411 3,214 158,435 158,995 159,092 160,321 52,381 52,590 52,826 53,144 78,134 78,680 78,633 79,511 21,763 21,720 21,645 21,633 1,754 1,756 1,739 1,775 3,905 3,752 3,755 3,739 . Mar. 6* ...........13* 1974 For notes see p. A-24. . . . . .......... 20 ........... 27 .......... 20* ........... 27* A 24 WEEKLY REPORTING BANKS □ APRIL 1974 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In m illions o f dollars) Borrowings from— Wednesday Fed eral funds pur F.R. chased, Banks etc.7 Others Memoranda Reserves for— Other liabili ties, etc. 8 Loans Secur ities Total capital ac counts Total loans (gross) ad justed9 Large negotiable Total time C D ’s loans included in time and De and savings deposits n invest mand ments deposits ad Issued Issued (gross) ad justed 10 Total to to justed IPC’s others Gross liabili ties of banks to their foreign bran ches L arge banks — Total 1973 30,005 29,944 29,890 29,915 235,800 236,608 238,968 238,300 316,628 317,186 319,655 318,873 95,307 96,749 95,203 96,205 51,804 53,615 53,996 54,932 33,756 35,396 35,394 36,205 18,048 18,219 18,602 18,727 1,465 1,419 1,290 1,127 78 73 73 78 32,123 32,155 32,097 32,049 266,145 265,681 265,546 266,870 353,467 351,678 352,501 353,776 97,418 95,665 96,735 98,174 66,202 66,157 65,680 65,756 45,063 45,089 44,765 45,069 21,139 21,068 20,915 20,687 1,659 2,218 1,735 1,689 79 105 99 99 32,402 32,450 32,399 32,417 268,403 268,602 271,127 273,393 356,737 357,208 358,297 360,383 98,300 99,148 97,982 99,349 65,877 66,523 66,261 67,785 45,031 45,805 45,469 46,829 20,846 20,718 20,792 20,956 1,610 2,274 2,459 2,947 1.264 1.264 1,272 1,251 7,617 7,599 7,578 7,566 54,977 55,241 55,302 55,155 68,017 68,014 68,525 67,955 20,189 20,061 19,613 19,828 18,195 18,880 18,716 19,045 12.663 13,301 12,997 13,210 5,532 5,579 5,719 5,835 915 828 996 728 21,389 18,994 21,365 21,754 21,016 20,853 20,541 20,362 37,772 36,816 34,674 35,693 884 1,588 2,639 1,598 2,217 2,383 2,418 2,334 16,495 16,335 17,006 16,594 4,397 4,400 4,409 4,391 6 ........................ 1 3 2 0 ........................ 2 7 52,448 54,016 56,826 53,885 592 2,268 840 947 5,519 5,360 5,110 5,358 17,562 18,209 18,299 18,211 4,968 4,966 4,964 4,976 6 * ...................... 13*...................... 20*...................... 27*...................... 57,583 56,802 55,240 53,595 671 1,362 1,910 1,748 5,403 5,922 6,16? 6,301 18,090 18,342 18,708 18,609 5,008 4,982 4,974 4,970 9,002 7,820 7,271 8,359 148 490 1,080 845 1,003 976 906 6,372 6,429 6,651 6,433 Mar. 7 ........................ 14........................ 2 1 ........................ 2 8 ........................ Feb. Mar. 1974 New York C ity 1973 Mar. 7 ........................ 1 4 2 1 ........................ 2 8 Feb. 6 ........................ 1 3 2 0 ........................ 2 7 11,436 12,859 13,957 12,535 642 2,427 2,398 2,172 2,287 5,488 6,055 5,865 5,759 1.360 1.361 1,357 1,370 8,247 8,255 8,243 8,236 61,705 61,297 60,988 61,782 77,222 76,401 76,626 77,305 14,034 13,985 13,867 13,866 6,982 6,868 6,674 6,496 1,220 1,817 1,419 1,240 Mar. 6 * ...................... 13*...................... 20*...................... 27*...................... 14,309 13,058 12,297 11,340 230 80 898 220 2,490 2,839 2,837 2,896 5,819 6,146 6,491 6,746 1.382 1.386 1.382 1.386 8,409 8,415 8,449 8,441 62,398 63,250 64,061 6 2 ,920 78,935 21,656 2 0,5 4 5 13,942 77,972 21,238 20,921 14,310 78,519 21,169 20,829 14,182 79,016 21,804 21,287 14,539 6,603 6,611 6,647 6,748 1,185 1,601 1,750 1,779 28,770 28,996 27,403 27,334 736 1,098 1,559 1,598 1,372 10,123 1,380 9,906 1,442 10,355 1,428 10,161 3,133 3.136 3.137 3,140 22,388 22,345 22,312 22,349 180,823 181,367 183,666 183,145 248,611 249,172 251,130 250,918 75,118 76,( 75,590 76,377 33,609 34,735 35,280 35,887 21,093 22,095 22,397 22,995 12,516 12,640 12,883 12,892 550 591 294 399 1974 Outside N ew York C ity 1973 Mar. 7 ........................ 1 4 2 1 ........................ 2 8 Feb. 6 ........................ 13........................ 2 0 ........................ 2 7 ........................ 41,012 41,157 42,869 41,350 592 1,626 840 947 3,092 2,962 2,938 3,071 12,074 12,154 12,434 12,452 3,608 3.605 3,607 3.606 78 73 73 78 23,876 23,900 23,854 23,813 204,440 204,384 204,558 205,C~~ 2.76,245 275,277 275,875 276,471 76,029 76,671 75,370 76,420 45,186 45,304 45,139 45,394 31,029 31,104 30,898 31,203 14,157 14,200 14,241 14,191 439 401 316 449 Mar. 6 * ...................... 13*...................... 2 0*...................... 27*...................... 43,274 43,744 42,943 42,255 441 1,282 1,012 1,528 2,913 3,083 3,326 3,405 12,271 12,196 12,217 11,863 3,626 3,596 3,592 3,584 79 105 99 99 23,993 24,035 23,950 23,976 205,483 206,204 207,877 209,332 277,802 279,236 279,778 281,367 76,644 77,910 76,813 77,545 45,332 45,602 45,432 46,498 31,089 31,495 31,287 32,290 14,243 14,107 14,145 14,208 425 673 709 1,168 1974 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 of 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 of deposit issued in denominations of $100,000 or more. APRIL 1974 □ BUSINESS LOANS OF BANKS A 25 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions o f dollars) Outstanding Net change during— 1974 Industry Mar. 27 Mar. 20 1974 1974 Mar. 13 Mar. 6 Feb. 27 Durable goods manufacturing: Primary metals................................. 1,886 1,884 1,832 1,813 1,798 Machinery......................................... 7,665 7,460 7,186 7,046 6,852 Transportation equipment.............. 2,846 2,793 2,735 2,688 2,661 2,589 2,565 2.448 2,381 2,356 Other fabricated metal products. . . Other durable goods........................ 4,039 3,947 3,887 3,793 3,736 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 4,285 4,258 4,095 4,059 3,982 3,776 3,750 3,638 3,538 3,444 Textiles, apparel, and leather.......... 1,214 1,215 1,229 1,200 1,203 Petroleum refining........................... 2,756 2,705 2,632 2,568 2,499 Chemicals and rubber..................... 2,263 2,230 2,163 2,133 2,133 Other nondurable goods................. Mining, including crude petroleum 4,121 4,117 4,080 4,094 4,066 and natural gas........................... 2,200 2,244 2,230 2,206 2,307 Trade: Commodity dealers................. 5,882 5,846 5,656 5,605 5,628 Other wholesale....................... 6,626 6,524 6,337 6,391 6,183 Retail........................................ 6,063 Transportation..................................... 6,045 5,969 5,986 5,905 2,175 2,184 2,103 2,099 2,102 Communication................................... 5,542 5,412 5,360 5,378 5,440 Other public utilities............................ 5,563 5,569 5,491 5,453 5,488 Construction......................................... Services................................................. 11,254 11,233 11,056 11,016 10,934 All other domestic loans..................... 8,732 8,662 8,578 8,577 8,277 Bankers’ acceptances........................... 1,316 1,287 1,348 1,244 1,250 Foreign commercial and industrial 4,188 4,089 4,070 3,986 4,017 loans.............................................. Total classified loans........................... 96,981 96,019 94,123 93,254 92,261 Total commercial and industrial loans of large commercial banks.......... 115,971 114,777 112,740 111,761 110,740 Mar. Feb. Jan. I 1973 IV 1973 III 2nd half 1st half 95 888 217 244 316 -6 9 128 171 12 115 58 53 -3 0 11 -8 2 84 1,069 358 267 349 -247 136 90 15 -363 18 479 272 56 290 -229 615 362 71 -7 3 20 1,453 64 503 872 299 345 12 272 128 28 234 -7 4 54 27 -203 -9 -1 1 4 -7 1 -3 9 124 570 -176 255 116 340 -4 4 0 184 -198 -6 5 393 235 19 48 156 733 -2 0 5 203 -1 5 0 91 -2 3 730 211 809 360 50 -108 258 430 164 73 146 94 310 535 86 39 49 178 375 -6 1 -4 0 -271 -8 129 -9 5 1 223 416 35 -265 2 116 -1 6 6 -5 7 -251 101 -2 5 312 357 471 540 105 149 -291 29 188 541 62 -233 630 151 -1 8 4 14 -7 8 596 -2 0 0 565 302 199 77 -4 2 43 165 66 -1 3 734 211 362 380 -3 2 2 -1 5 6 588 194 - 19 80 -9 1 1,330 11 927 682 -123 331 -5 4 0 567 1,092 294 258 961 878 997 1,754 -1 5 4 181 5,035 -1 4 2 780 86 -211 125 5,604 23 1,237 -3 8 4 3,243 554 -361 4,480 11,991 5,231 982 -363 5,850 1,938 3,371 5,309 13,709 See Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding 1974 Industry Mar. 27 Net change during1974 1973 I IV 1,290 2,642 1,231 1,292 2,664 1,197 -4 0 248 81 -203 186 18 -2 1 39 77 -7 328 15 -2 2 4 225 95 871 1,788 853 1,738 867 1,728 17 143 23 -1 6 2 98 84 170 25 82 1,470 1,477 1,410 1,415 38 14 84 43 98 1,033 883 1,534 1,090 1,028 920 1,552 1,100 1,023 925 1,493 1,080 1,002 947 1,485 1,066 86 12 42 57 -2 5 13 9 -1 8 59 44 71 37 77 34 2 -3 7 34 57 80 19 2,958 120 1,223 2,175 4,220 819 2,857 1,954 4,777 2,552 2,990 116 1,178 2,147 4,279 858 2,836 1,992 4,719 2,585 2,921 115 1,151 2,135 4,292 835 2,678 2,000 4,666 2,460 3,022 175 1,118 2,063 4,263 814 2,548 2,010 4,578 2,390 287 13 133 274 97 106 -9 8 -7 27 206 -3 2 11 12 59 41 2 416 -8 7 330 17 144 -7 112 141 -2 6 73 427 96 157 384 -2 6 -2 7 11 183 71 39 175 187 223 330 112 4 124 200 15 75 843 9 487 401 2,308 2,186 2,292 2,497 36 148 -399 18 -251 Total loans............................. ,*42,551 *42,551 41,486 41,563 40,793 40,235 39,898 39,875 39,230 39,141 1,758 918 1,592 1,893 2,510 Durable goods manufactur ing: Primary metals................. Machinery.......................... Transportation equipment. Other fabricated metal products........................ Other durable goods.......... Nondurable goods manufac turing: Food, liquor, and tobacco. Textiles, apparel, and leather........................... Petroleum refining........... Chemicals and rubber... . Other nondurable goods.. Mining, including crude pe troleum and natural gas. Trade: Commodity dealers.. Other wholesale Retail................ Transportation............. Communication............ Other public utilities... Construction................ Services......................... Foreign commercial and in dustrial loans___ Feb. 27 Jan. 30 Dec. 26 1,064 3,114 1,365 1,046 3,037 1,367 1,092 2,950 1,324 1,104 2,866 1,284 1,240 2,726 1,257 1,259 2,731 1,239 1,307 2,680 1,266 911 1,915 911 1,837 938 1,737 894 1,772 912 1,754 901 1,795 1,529 1,527 1,514 1,491 1,469 1,089 945 1,603 1,139 1,043 897 1,569 1,080 1,032 920 1,570 1,069 1,003 933 1,561 1,082 1,036 839 1,509 1,077 3,245 140 1,323 2,480 4,417 966 3,154 1,898 5,076 2,808 3,206 129 1,315 2,376 4,311 940 3,245 1,940 5,004 2,385 3,153 137 1,265 2,249 4,327 947 3,298 1,943 4,937 2,692 2,958 127 1,190 2,206 4,320 860 3,252 1,905 5,049 2,602 2,950 135 1,172 2,227 4,208 828 3,121 1,936 4,916 2,617 2,370 2,321 2,469 2,334 2,306 N ote.—About 160 weekly reporting banks are included in this series; these banks classify, by industry, commercial and industrial loans amount ing to about 90 per cent of such loans held by all weekly reporting banks and about 70 per cent of those held by all commercial banks. For description of series see article “ Revised Series on Commercial and Industrial Loans by Industry,” Feb. 1967 B u l l e t i n , p. 209. Sept. 26 Aug. 29 2nd half July 25 Nov. 28 Oct. 31 1973 1973 III II Commercial and industrial “ term” loans are all outstanding loans with an original maturity of more than 1 year and all outstanding loans granted under a formal agreement—revolving credit or standby—on which the original maturity of the commitment was in excess of 1 year. A 26 DEMAND DEPOSIT OWNERSHIP □ APRIL 1974 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions o f dollars) Type of holder Class o f bank, and quarter or month Total deposits, IPC Financial business Nonfinancial business Consumer 1970—Sept......................................................................................... 17.0 17.3 88.0 92.7 51.4 53.6 1.4 1.3 10.0 10.3 167.9 175.1 1971 18.3 18.1 17.9 18.5 86.3 89.6 91.5 98.4 54.4 56.2 57.5 58.6 1.4 1.3 1.2 1.3 10.5 10.5 9 .7 10.7 170.9 175.8 177.9 187.5 June....................................................................................... Sept........................................................................................ 17.9 18.0 18.9 97.6 101.5 109.9 60.5 63.1 65.4 1.4 1.4 1.5 11.0 11.4 12.3 188.4 195.4 208.0 1973—Mar........................................................................................ June........................................................................................ Sept......................................................................................... D ec......................................................................................... 18.6 18.6 18.8 19.1 102.8 106.6 108.3 116.2 65.1 67.3 69.1 70.1 1.7 2.0 2.1 2.4 11.8 11.8 11.9 12.4 200.0 206.3 210.3 220.1 All other Foreign All commercial banks: Mar........................................................................................ Sept......................................................................................... 1972 Weekly reporting banks: 1971—D ec......................................................................................... 14.4 58.6 24.6 1.2 5.9 104.8 1972 D ec......................................................................................... 14.7 64.4 27.1 1.4 6 .6 114.3 1973—Feb.......................................................................................... Mar......................................................................................... Apr......................................................................................... July......................................................................................... Aug........................................................................................ Sept........................................................................................ Oct......................................................................................... N ov........................................................................................ D ec......................................................................................... 14.3 14.4 14.3 13.8 14.2 14.8 14.3 14.5 15.0 14.8 14.9 60.3 59.0 59.4 59.1 60.8 61.1 59.5 60.6 61.7 62.9 66.2 26.3 26.5 28.6 26.9 27.1 27.3 27.3 27.2 27.3 27.5 28.0 1.6 1.6 1.8 1.9 1.9 1.9 1.9 1.9 2.0 2.1 2.2 6.5 6.4 6 .4 6 .4 6.3 6.6 6.1 6.5 6.6 6 .7 6.8 109.0 107.9 110.4 108.0 110.2 111.7 109.1 110.8 112.5 113.9 118.1 1974—Jan.......................................................................................... Feb.*...................................................................................... 15.2 14.1 63.8 62.1 28.4 26.9 2.3 2.3 6.7 6.2 116.5 111.6 1 Including cash items in process of collection. N ote.—Daily-average balances maintained during month as estimated from reports supplied by a sample o f commercial banks. For a detailed description of the type o f depositor in each category, see June 1971 Bulletin, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of bank All commercial. . . . Insured................. National member State member___ All member............. Dec. 31, 1971 680 677 387 95 482 Dec. 31, 1972 559 554 311 71 381 June 30, 1973 538 533 304 71 375 Oct. 17, 1973 505 281 70 350 1 Beginning Nov. 9,1972, designation o f banks as reserve city banks for reserve-requirement purposes has been based on size o f bank (net demand deposits o f more than $400 million), as described in the Bulletin for July 1972, p. 626. Categories shown here as “Other large” and “All other member” parallel the previous “Reserve City” (other than in New York City and the City o f Chicago) and “Country” categories, respectively (hence the series are continuous over time). Class of bank All member—Cont. Other large banks 1 All other member 1 All nonmember......... Insured .................... Noninsured............ Dec. 31, 1971 112 371 197 195 2 Dec. 31, 1972 69 313 177 172 5 June 30, 1973 63 312 163 158 5 Oct. 17, 1973 59 291 155 N ote.—Hypothecated deposits, as shown in this table, are treated one way in monthly and weekly series for commercial banks and in another way in call-date series. That is, they are excluded from “Time deposits” and “ Loans” in the monthly (and year-end) series as shown on pp. A-16 and A-17; from the figures for weekly reporting banks as shown on pp. A-20-A-24 (consumer instalment loans); and from the figures in the table at the bottom of p. A-15. But they are included in the figures for “Time deposits” and “Loans” for call dates as shown on pp. A -16-A -19. APRIL 1974 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 27 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates T o all ot hers e x c ep t bank s By type o f loan By type o f loan Total Total 1973—Dec. 1974—Jan. Feb. All other Commercial and industrial All other 19. 26. 4,407 4,393 4,297 4.300 2,669 2,620 2,580 2,603 1,738 1,773 1,717 1,697 1,821 1,802 1,792 1,798 346 337 332 331 1,475 1.465 1,460 1.467 2. 9. 16. 23. 30. 4,460 4,487 4,503 4.301 4,439 2,675 2,700 2,691 2,508 2,623 1,785 1,787 1,812 1,793 1,816 1,794 1.790 1.791 1,790 1,810 327 325 332 340 343 1.467 1.465 1,459 1,450 1.467 6. 13. 4,605 4,729 4,933 4,992 2,638 2,687 2,673 2,748 1,967 2,042 2,260 2,244 1,780 1,389 1,342 1 ,414 341 333 336 337 1,439 1,056 1,006 1 ,077 4,939 4,935 4,840 4,904 2,754 2,768 2,787 2,834 2,185 2,167 2,053 2,070 1 ,414 1 ,420 1 ,419 1,441 339 339 340 375 1 ,075 1,081 1 ,079 1 ,066 5. 12. 20. 27 r Mar. Commercial and industrial 6. 13. 20. 27. N ote .— A m o u n t s sold under repurchase a gr eem ent are ex c lu d ed . Figures include small a m o u n t s sold by b an k s o th er than large week ly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance comoanv Daoer Dollar acceptances Held by— Placed through dealers End of period Pla ced dir€ictly Total Accepting banks Based on- F.R. Banks Total Others Bank Bank related Other 1 related Other2 1965............................ 1966................... .. 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 1972............................ 9,300 13,645 17,085 21,173 32,600 **1**2i6 33,071 409 32,126 495 34,721 930 1973—Feb................. 35,196 Mar................. 34,052 Apr................. 34,404 M ay............... 35,672 June............... 35,786 July................. 35,463 Aug................. 37,149 Sept................. 37,641 Oct.................. 41,602 Nov................ 42,945 D ec................. 41,073 1974—Jan.................. Feb................. 45,491 47,164 Total Bills bought Own acct. Ex ports from United States All other 1,903 7,397 3,089 10,556 4,901 12,184 7,201 13,972 10,601 **3*078 17,705 12,262 1,940 18,460 10,923 1,478 19,230 11,242 1,707 20,842 3,392 3,603 4,317 4,428 5,451 7,058 7,889 6,898 1,223 1,198 1,906 1,544 1,567 2,694 3,480 2,706 1,094 983 1,447 1,344 1,318 1,960 2,689 2,006 129 215 459 200 249 735 791 700 187 193 164 58 64 57 261 106 144 191 156 109 146 250 254 179 1,837 2,022 2,090 2,717 3,674 4,057 3,894 3,907 792 997 1,086 1,423 1 ,889 2,601 2,834 2,531 974 829 989 952 1 ,153 1,561 1,546 1,909 1,626 1,778 2,241 2,053 2,408 2,895 3,509 2,458 956 9,968 993 8,366 1,044 8,290 1,148 8,288 1,173 8,316 1,207 7,954 1,350 7,676 1,353 8,845 1,319 11,727 1,317 12,824 1,311 11,751 2,160 2,463 2,767 2,922 3,110 3,307 3,758 3,878 3,549 3,655 3,570 22,112 22,230 22,303 23,314 23,187 22,995 24,365 23,565 25,007 25,149 24,441 6,734 6,859 6,713 6,888 7,237 7,693 7,734 8,170 8,237 8,493 8,892 2,328 2,269 2,068 2,197 2,185 2,254 1,968 2,099 2,042 2,566 2,837 1,765 1,777 1,641 1,763 1,746 1,803 1,598 1,629 1,731 2,129 2,318 563 492 427 433 439 452 370 470 311 437 519 233 165 136 83 66 132 84 145 107 71 68 239 282 344 384 395 496 522 548 589 604 581 3,934 4,143 4,165 4,225 4,591 4,810 5,159 5,379 5,499 5,252 5,406 2,311 2,091 1,996 2,009 2,053 2,222 2,268 2,296 2,345 2,320 2,273 2,113 2,399 2,359 2,509 2,755 2,954 2,945 3,289 3,222 3,340 3,499 2,310 2,368 2,359 2,371 2,428 2,517 2,520 2,585 2,670 2,833 3,120 1,429 1,449 4,072 26,000 4,080 25,738 9,101 9,364 2,706 2,854 2,251 2,328 454 525 68 69 589 592 5,738 5,850 2,334 2,434 3,492 3,182 3,275 3,748 13,990 15,897 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. Own bills For eign corr. Imports into United States N ote.—Back data available from Financial Statistics Division, Federal Reserve Bank of New York. A 28 INTEREST RATES □ APRIL 1974 PRIME RATE CHARGED BY BANKS (Per cent per annum) Effective date 1972—Jan. 3. 17. 24. 31. Rate 5-5% -5% - 434- 5- 51/445/8_434_5b 4*A -4% m-5 Feb. 28. 43/8-4 % - Mar. 13. 23. 27. 4 3 /4 4 % -4 3 /* « . 4 3 4 . - 4 7 / 8- 5 Apr. 3. 5. 17. 434.-5 1. 30. 5.-51/8-5 14 5b May July 3. 10. 5% --5% 17. 31. 51/4--51/2 Aug. 11. 14. 21. 25. 29. Effective date 1973—June 5%5% --5% 5% .-5% - July 5% 5. 5--5% 5«-5i/8 51/4- 5% . 1972—Sept. 4 5 11 25, Oct. 2. 4. 11. 16. 5%--534 5%-5345*/45*4--57/8 Nov. 6. 20. 5*45%--57/8 434 June 12. 26. Rate Effective date 1973—Jan. 4. Feb. 2. 14. 26. 27. 5 -5 1 4 - 5 1 4 - - 5 3 /8 5% 91/2-934-10. 9% -934.-10 Apr. 18 19. 6% -634. 634- May 634.-7 7. 7 .- 7 14 7-714- 1974—Jan. N ote.—Beginning Nov. 1971, several banks adopted a floating prime rate keyed to money market variables. . denotes the predominate prime rate quoted by commercial banks to large businesses. Rate 1974—Feb. 11 19 25 26 9-9i4-93/io 9 --9 14 8V10-8 34 .-9 8Vio-834. Mar. 4, 8% -87/108348 %—86/io— 8% 8^4.-88/io 834.-88/10_.9 88/ 10- 9 . 9. 9 .- 9 1/4 9-9 14 .-9 % 5, 19, 21, 22, 26, 28, 29 8% 8% -834. Oct. 22. 24 9 -9 1 4 - 914--9% 9% 9% -934. 934. 9%-93/4.. 99/io 9%-93/4.98/io 91/4-9%.9Vio 7 14. 51/ - - 5 3 5%- 734 .-8 734-8. Effective date 8- 814 ■ 814 - - 8 % 814 - 8 % . 934.-10 10. 934-10. 614--634 6%■ 4, 7, 24, 25, 2. 3. 9. 17, 18. 23, 30, Sept. 14. 18 27 Mar. 19. 26. 51,4-53/8- %--734 6.-614 6. 6.-6V4 6J4 - 6. 5% 5% --5% 5%- 5% --5% 5% 71/2. 7 7*4- 834-9. 9. 5V4m -5y8- 4 /8 8 19 25. Aug. 6. 7. 13 21 22 28, 29 . 534--6 534-6. Dec. 26. 27. Rate Effective Apr. 16, 1973, with the adoption of a two tier or “dual prime rate,” this table shows only the “large-business prime rate.” which is the range of rates charged by commercial banks on short-term loans to large businesses with the highest credit standing; RATES ON BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Center Feb. 1974 Nov. 1973 Feb. 1974 Nov. 1973 Feb. 1974 Nov. 1973 Feb. 1974 Nov. 1973 Nov. 1973 Feb. 1974 Nov. 1973 10.43 10.31 10.86 10.38 10.16 10.28 10.28 10.06 9.78 10.48 10.14 9.90 9.99 9.83 10.18 10.01 10.58 10.19 9.97 10.04 10.13 9.75 9.62 9.99 9.82 9.60 9.82 9.68 9.95 9.83 10.32 9.91 9.89 9.97 9.95 10.20 10.33 10.55 9.70 9.83 11.22 10.16 9.78 9.72 9.65 10.03 9.35 10.43 9.65 10.23 10.21 10.32 10.55 9.75 10.72 10.04 9.79 9.92 10.25 9.97 10.14 10.35 9.51 10.11 10.31 10.00 10.24 10.05 10.64 9.88 10.23 10.45 9.83 10.12 13 07 10.15 9.80 10.24 9.95 10.58 10.10 14.20 9.63 10.22 10.54 10.60 9.94 10.25 15.73 10.59 10.73 10.09 10.02 10.58 10.57 8.90 9.79 9.55 10.78 11.12 10.29 11.16 10.96 10.21 10.15 Feb. 1974 Short-term 35 centers..................................... New York City........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 9.91 9.68 10.28 9.98 9.80 9.93 9.78 10.08 9.90 10.51 10.02 9.96 10.08 10.04 9.86 9.93 10.42 9.18 9.69 9.90 10.16 9.80 10.04 10.34 9.02 9.58 9.91 10.23 10.09 10.12 10.46 9.98 9.81 9.98 10.08 10.14 10.28 10.57 9.81 9.82 10.09 10.26 10.28 9.95 10.71 10.42 10.02 10.04 10.05 Revolving credit 35 centers..................................... New York City........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast........................... 9.82 9.91 10.20 10.00 9.96 10.34 9.58 10.13 10.30 10.09 10.22 9.22 10.74 9.92 10.22 9.32 9.82 11.14 9.75 10.58 10.24 10.09 9.84 10.36 9.96 9.11 10.46 10.09 10.09 9.60 10.27 10.27 9.88 9.97 10.11 10.18 10.09 10.69 10.17 9.54 10.19 10.21 10.10 9.99 10.32 10.17 10.09 10.32 10.04 Long-term 35 centers..................................... New York C ity ........................ 7 Other Northeast................... 8 North Central....................... 7 Southeast............................... 8 Southwest.............................. 4 West Coast............................ 10.16 10.03 10.48 10.48 10.93 9.90 9.75 10.68 11.05 10.17 10.92 12.33 10.28 10.18 10.74 10.93 10.51 10.49 10.88 10.75 10.36 9.69 10.80 10.08 9.10 10.95 9.92 N ote.—Beginning Feb. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 46877 of the June 1971 Bulletin. 10.42 10.93 10.07 9.69 13.59 10.23 10.21 10.45 10.92 10.32 10.40 10.98 10.22 10.29 10.47 10.06 10.19 10.45 12.48 10.56 10.64 APRIL 1974 a INTEREST RATES A 29 MONEY MARKET RATES (Per cent per annum) Prime commercial paper1 Period 90-119 days 1967......................... 1968......................... 1969......................... 4- to 6months Finance CO. Prime paper bankers’ placed accept ances, directly, 3- to 6- 90 days 1 months2 U.S. Government securities4 Fed eral funds rate3 3-month bills5 Rate on new issue Market yield 6-month bills5 Rate on new issue Market yield 9- to 12-month issues 1-year bill (mar Other 6 ket yield)5 3- to 5year issues6 5.10 5.90 7.83 4.89 5.69 7.16 4.75 5.75 7.61 4.22 5.66 8.22 4.321 5.339 6.677 4.29 5.34 6.67 4.630 5.470 6.853 4.61 5.47 6.86 4.71 5.46 6.79 4.84 5.62 7.06 5.07 5.59 6.85 1970......................... 1971......................... 1972......................... 1973......................... 4.66 8.20 7.72 5.11 4.69 8.15 7.23 4.91 4.52 7.40 7.31 4.85 4.47 8.08 7.17 4.66 4.44 8.74 6.458 4.348 4.071 7.041 6.39 4.33 4.07 7.03 6.562 4.511 4.466 7.178 6.51 4.52 4.49 7.20 6.49 4.67 4.77 7.01 6.90 4.75 4.86 7.30 7.37 5.77 5.85 6.92 1973—Mar............... Apr............... M ay.............. June.............. July............... Aug............... Sept.............. Oct................ Nov............... Dec............... 6.76 7.13 7.26 8.00 9.26 10.26 10.31 9.14 9.11 9.28 6.85 7.14 7.27 7.99 9.18 10.21 10.23 8.92 8.94 9.08 6.45 6.76 6.85 7.45 8.09 8.90 8.90 7.84 7.94 8.16 6.82 6.97 7.15 7.98 9.19 10.18 10.19 9.07 8.73 8.94 7.09 7.12 7.84 8.49 10.40 10.50 10.78 10.01 10.03 9.95 6.054 6.289 6.348 7.188 8.015 8.672 8.478 7.155 7.866 7.364 6.09 6.26 6.36 7.19 8.01 8.67 8.29 7.22 7.83 7.45 6.430 6.525 6.615 7.234 8.081 8.700 8.537 7.259 7.823 7.444 6.51 6.52 6.62 7.23 8.12 8.65 8.45 7.32 7.96 7.56 6.53 6.51 6.63 7.05 7.97 8.32 8.07 7.17 7.40 7.01 6.81 6.79 6.83 7.27 8.37 8.82 8.44 7.42 7.66 7.38 6.85 6.74 6.78 6.76 7.49 7.75 7.16 6.81 6.96 6.80 1974—Jan................ Feb................ Mar............... 8.86 8.00 8.64 8.66 7.82 8.42 7.92 7.40 7.76 8.72 7.83 8.43 9.65 8.97 9.35 7.755 7.060 7.986 7.77 7.12 7.96 7.627 6.874 7.829 7.65 6.96 7.83 7.01 6.51 7.34 7.46 6.93 7.86 6.94 6.77 7.33 Week ending— 1973—Dec. 1 ,,, 8 ....... 15....... 22 29 9.25 9.43 9.35 9.15 9.19 9.10 9.20 9.10 9.00 9.00 8.05 8.25 8.18 8.20 8.00 8.75 9.10 9.15 8.75 8.75 10.09 10.17 10.04 10.18 9.52 7.695 7.358 7.386 7.366 7.346 7.52 7.47 7.51 7.35 7.50 7.679 7.766 7.530 7.164 7.315 7.77 7.94 7.52 7.32 7.46 7.29 7.39 7.01 6.75 6.84 7.36 7.53 7.37 7.22 7.41 6.78 6.89 6.75 6.74 6.83 1974—Jan. 5 ....... 12....... 19 26 9.13 8.85 8.95 8.90 8.88 8.65 8.75 8.68 8.00 7.80 7.90 8.00 8.75 8.75 8.75 8.75 9.87 9.76 9.77 9.60 7.406 7.615 7.983 7.995 7.49 7.72 7.89 7.99 7.371 7.560 7.867 7.819 7.48 7.66 7.79 7.81 6.94 7.07 7.04 7.07 7.37 7.41 7.52 7.58 6.83 6.88 6.94 7.06 Feb. 2 9 , 16....... 23 8.45 8.15 7.94 7.84 8.38 7.93 7.75 7.69 7.93 7.53 7.38 7.31 8.55 7.85 7.75 7.75 9.47 9.13 8.93 9.07 7.778 6.951 7.081 7.018 7.55 7.03 7.06 7.07 7.516 6.747 6.882 6.787 7.31 6.91 6.86 6.87 6.80 6.52 6.41 6.42 7.33 6.87 6.83 6.87 6.94 6.74 6.70 6.76 Mar. 2 ....... 9 16 23 30 8.00 8.20 8.43 8.73 9.30 7.88 8.00 8.18 8.50 9.10 7.30 7.50 7.75 7.85 8.00 7.85 8.00 8.08 8.60 9.10 8.81 8.98 9.03 9.33 9.61 7.188 7.675 7.920 8.047 8.300 7.36 7.71 7.82 8.06 8.35 7.081 7.566 7.637 7.882 8.231 7.27 7.53 7.59 8.02 8.24 6.71 6.96 7.06 7.56 7.84 7.15 7.34 7.59 8.15 8.49 6.93 7.06 7.16 7.48 7.69 1 Averages of the most representative daily offering rate quoted by dealers. 2 Averages of the most representative daily offering rate published by finance companies, for varying maturities in the 90-179 day range. 3 Seven-day averages for week ending Wednesday. Beginning with statement week ending July 25, 1973, weekly averages are based on the daily average of the range of rates on a given day weighted by the volume of transactions at these rates. For earlier statement weeks, the averages were based on the daily effective rate—the rate considered most repre sentative of the day’s transactions, usually the one at which most trans actions occurred. 4 Except for new bill issues, yields are averages computed from daily closing bid prices. 5 Bills quoted on bank-discount-rate basis. 6 Selected note and bond issues. N ote.—Figures for Treasury bills are the revised series described on p. A-35 of the Oct. 1972 Bulletin. A 30 INTEREST RATES □ APRIL 1974 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Aaa utility State and local Period United States (long term) Stocks By selected rating Dividend/ price ratio By group Earnings/ price ratio Total i Total i Aaa Baa New issue Re cently offered Aaa Baa Indus trial Rail road Public utility Pre ferred Com mon Com mon Seasoned issues 4.86 4.83 4.42 4.52 4.65 4.67 4.41 4.53 4.30 4.32 3.17 3.01 5.68 5.54 4.51 5.38 5.79 6.47 7.64 4.87 4.64 4.49 5.34 5.67 5.13 5.82 6.23 5.51 6.51 6.94 6.18 7.36 7.03 7.81 1969..................... 4.61 5.30 5.74 6.41 7.22 4.72 5.37 5.89 6.77 7.46 4.60 5.36 5.81 6.49 7.49 4.33 4.97 5.34 5.78 6.41 3.00 3.40 3.20 3.07 3.24 5.87 6.72 5.71 5.64 6.08 8.68 7.62 7.31 7.74 8.71 7.66 7.34 7.75 8.51 7.94 7.63 7.80 8.04 7.39 7.21 7.44 9 .U 8.56 8.16 8.24 8.26 7.57 7.35 7.60 8.77 8.38 7.99 8.12 8.68 8.13 7.74 7.83 7.22 6.75 7.27 7.23 3.83 3.14 2.84 3.06 6.46 5.41 5.50 5.58 5.42 5.41 5.51 5.71 5.80 5.41 5.31 5.46 5.43 7.49 7.46 7.51 7.64 8.01 8.36 7.88 7.90 7.90 8.00 7.54 7.47 7.50 7.64 7.97 8.22 7.99 7.94 7.94 8.04 7.62 7.62 7.62 7.69 7.80 8.04 8.06 7.96 8.02 8.05 7.29 7.26 7.29 7.37 7.45 7.68 7.63 7.60 7.67 7.68 8.03 8.09 8.06 8.13 8.24 8.53 8.63 8.41 8.42 8.48 7.43 7.43 7.41 7.49 7.59 7.91 7.89 7.76 7.81 7.84 7.94 7.98 8.01 8.07 8.17 8.32 8.37 8.24 8.28 8.28 7.64 7.64 7.63 7.69 7.81 8.06 8.09 8.04 8.11 8.17 7.03 7.11 7.13 7.25 7.35 7.43 7.38 7.18 7.40 7.76 2.83 2.90 3.01 3.06 3.04 3.16 3.13 3.05 3.36 3.70 6.10 5.03 5.05 5.20 5.49 5.49 5.71 8.21 8.12 8.46 8.22 8.23 8.42 8.15 8.17 8.27 7.83 7.85 8.01 8.58 8.59 8.65 7.97 8.01 8.12 8.34 8.27 8.35 8.27 8.33 8.44 7.60 7.47 7.56 3.64 3.81 3.65 5.24 5.18 5.24 5.28 5.05 4.95 5.05 5.10 5.50 5.45 5.45 5.50 8.11 8.13 8.05 8.10 8.20 8.19 8.25 8.24 8.18 8.16 8.17 8.18 7.87 7.82 7.85 7.87 8.58 8.57 8.59 8.61 8.01 7.99 8.00 8.03 8.29 8.28 8.28 8.26 8.33 8.31 8.33 8.34 7.62 7.54 7.49 7.47 3.65 3.81 3.92 3.92 6.62 6.71 6.75 6.88 6.93 5.29 5.31 5.38 5.46 5.61 5.10 5.10 5.15 5.20 5.35 5.55 5.55 5.65 5.75 5.90 8.30 8.37 8.33 8.59 8.64 8.29 8.27 8.37 8.52 8.67 8.18 8.21 8.25 8.30 8.36 7.87 7.92 7.99 8.05 8.11 8.59 8.60 8.63 8.67 8.72 8.03 8.05 8.08 8.14 8.22 8.25 8.28 8.33 8.37 8.39 8.35 8.38 8.41 8.46 8.53 7.39 7.39 7. 50 7.63 7.72 3.70 3.64 3.58 3.67 3.71 12 20 5 5 121 20 30 41 30 40 14 500 1963..................... 1964..................... 4.00 4.15 3.28 3.28 3.06 3.09 3.58 3.54 4.21 4.34 1965..................... 1966..................... 1967..................... 1968..................... 4.21 4.66 4.85 5.25 6.10 3.34 3.90 3.99 4.48 5.73 3.16 3.67 3.74 4.20 5.45 3.57 4.21 4.30 4.88 6.07 4.50 5.43 5.82 6.50 7.71 1970..................... 1971..................... 1972..................... 1973.................... 6.59 5.74 5.63 6.30 6.42 5.62 5.30 5.22 6.12 5.22 5.04 4.99 6.75 5.89 5.60 5.49 1973—Mar Apr.......... M ay........ June........ J u ly ........ A ug......... Sept.......... Oct........... N ov......... D ec.......... 6.20 6.11 6.22 6.32 6.53 6.81 6.42 6.26 6.31 6.35 5.30 5.17 5.13 5.25 5.44 5.51 5.13 5.03 5.21 5.14 5.07 4.95 4.90 5.05 5.21 5.26 4.90 4.76 5.03 4.90 1974—Jan........... Feb.......... Mar......... 6.56 6.54 6.81 5.23 5.25 5.44 6.55 6.50 6.50 6.56 2. 9. 16 . 23 . 30 . Number of issues2 ........... 4.50 4.57 4.26 4.40 6.93 7.06 Week ending— 1974—Feb. 2 . . 9. . 16. 23 . Mar. 1 Includes bonds rated Aa and A, data for which are not shown sep arately. Because o f a limited number o f suitable issues, the number of corporate bonds in some groups has varied somewhat. As o f Dec. 23, 1967, there is no longer an Aaa-rated railroad bond series. 2 Number o f issues varies over time; figures shown reflect most recent count. N o t e .—Annual yields are averages of monthly or quarterly data. Bonds: Monthly and weekly yields are computed as follows: (1) U.S. Govt.: Averages o f daily figures for bonds maturing or callable in 10 years or more; from Treasury Dept. (2) S tate and local g o v t.: General obligations 500 only, based on Thurs. figures; from Moody’s Investor Service. (3) Cor porate: Rates for “ New issue” and “Recently offered” Aaa utility bonds are weekly averages compiled by the Board of Governors of the Federal Reserve System. Rates for seasoned issues are averages of daily figures from Moody’s Investors Service. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are based on Wed. figures; earnings/price ratios are as of end of period. Preferred stock ratio is based on eight median yields for a sample of noncallable issues— 12 industrial and 2 public utility; common stock ratios on the 500 stocks in the price index. Quarterly earnings are seasonally adjusted at annual rates. NOTES TO TABLES ON OPPOSITE PAGE: Security Prices: Terms on Mortgages: 1 Through Aug. 1973 the index is based upon an initial value o f 10.90— the average price o f a share o f stock listed on the American Stock Exchange was $10.90 on June 30, 1965. As o f Sept. 1973, a new market-value index with a starting value of 100.00 replaced the previous series. An index for past periods is being calculated on the new market-value basis and will be published as it becomes available. i Fees and charges—related to principal mortgage amount—include loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower or home-seller. They exclude any closing costs related soleiy to transfer of property ownership. N o t e .—Annual data are averages of 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 p. A-30 on basis o f an assumed 3 per cent, 20-year bond. M unicipal and corporate bonds , derived from average yields as computed by Standard and Poor’s Corp., on basis o f a 4 per cent, 20year 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 2 1 l/ i hours per week. In recent years shorter days and/or weeks have cut total weekly trading to the following number o f hours: 1967—Aug. 8-20, 20; 1968—Jan. 22Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31221/z; 1970—Jan. 2-M ay 1, 25. N o t e .—Compiled by Federal Home Loan Bank Board in cooperation with Federal Deposit Insurance Corporation. Data are weighted averages based on probability sample survey of characteristics of mortgages originated by major institutional lender groups (including mortgage companies) for purchase of single-family homes. Data exclude loans for refinancing, reconditioning, or modernization; construction loans to homebuilders; and permanent loans that are coupled with construction loans to owner-builders. Series revised beginning Jan. 1973; hence data are not strictly comparable with earlier figures. See also the table on HomeMortgage Yields, p. A-49. APRIL 1974 □ SECURITY MARKETS A 31 SECURITY PRICES Common stock prices New York Stock Exchange Bond prices (per cent o f par) Standard and Poor’s index (1941_43= 10) U.S. Govt. (long term) State and local Cor porate AAA Total Indus trial Rail road Public utility 1 9 6 3 .............. 196 4 86.31 84.46 111.3 111.5 96.8 95.1 69.87 81.37 73.39 86.19 37.58 45.46 64.99 69.91 196 196 196 196 196 5 6 7 8 9 83.76 78.63 76.55 72.33 64.49 110.6 102.6 93.9 81.8 76.4 68.5 88.17 93.48 85.26 91.09 91.93 99.18 98.70 107.49 97.84 107.13 46.78 46.34 46.72 48.84 45.95 76.08 100.5 93.5 7 9.0 197 197 197 197 0 1 2 3 60.52 67.73 68.71 62.80 72.3 80.0 84.4 85.4 61.6 65.0 65.9 63.7 83.22 91.29 98.29 108.35 109.20 121.79 107.43 120.44 63.59 64.39 63.43 62.61 60.87 58.71 61.81 63.13 62.71 62.37 84.1 85.7 86.1 65.2 112.42 64.9 110.27 64.7 107.22 64.4 104.75 63.8 105.83 61.0 103.80 61.3 105.61 62.1 109.84 62.1 102.03 62.9 94.78 60.66 60.83 58.70 85.2 85.3 83.5 62.3 62.0 61.3 96.11 93.45 97.44 60.19 59.47 59.17 58.18 57.79 84.8 84.8 84.3 83.0 81.8 61.8 61.7 61.4 61.1 61.1 . 1973—M ar... Apr. May. ... J u n e.. . . July........ A u g ... .. Sept Oct......... N ov........ D ec........ 1974—Ja............n Feb........ Mar....... 86.1 85.8 83.2 82.2 86.2 86.9 85.6 86.1 Amer ican Stock Ex change total indexl New York Stock Exchange index (Dec. 31, 1965 = 50) Indus trial Total Trans porta tion Utility Fi nance Volume of trading in stocks (thousands of shares) NYSE AMEX 8.52 9.81 4,573 4,888 1,269 1,570 66.42 62.64 44.16 50.77 55.37 54.67 43.79 51.97 58.00 57.45 48.23 53.51 50.58 46.96 44.77 45.43 44.19 42.80 44.43 49.82 65.85 70.49 12.05 6,174 14.67 7,538 19.67 10,143 27.72 12,971 138.96 11,403 2,752 4,508 6,353 5,001 32.13 41.94 44.11 38.05 54.48 59.33 56.90 53.47 45.72 54.22 60.29 57.42 48.03 57.92 65.73 63.08 32.14 44.35 50.17 37.74 37.24 39.53 38.48 37.69 54.64 70.38 78.35 70.12 96.63 113.40 129.10 103.80 10,532 17,429 16,487 16,374 3,376 4,234 4,447 3,004 126.05 123.56 119.95 117.20 118.65 116.75 118.52 123.42 114.64 106.16 39.29 35.88 36.14 34.35 35.22 33.76 35.49 38.24 39.74 41.48 55.94 55.34 55.43 54.37 53.31 50.14 52.31 53.22 48.30 45.73 60.15 58.67 56.74 55.14 56.12 55.33 56.71 59.26 54.59 50.39 64.41 62.22 60.52 61.53 61.09 62.25 65.29 60.15 55.12 66.20 40.92 40.57 36.66 33.72 34.22 33.48 35.82 39.03 36.31 34.69 39.13 38.97 39.01 37.95 37.68 35.40 36.79 37.47 34.73 33.47 72.32 110.24 15,564 69.42 105.32 13,900 65.33 97.11 15,329 63.52 92.60 12,796 68.95 97.67 14,655 68.26 99.23 14,761 72.23 101.88 17,320 74.98 107.97 18,387 67.85 99.91 19,044 62.49 88.39 19,227 2,966 2,981 3,043 2,316 2,522 1,796 2,055 3,388 3,693 3,553 107.18 104.13 108.98 44.37 41.85 42.57 48.60 48.13 47.90 51.39 50.01 52.15 55.77 54.02 56.80 36.85 36.26 38.39 35.89 35.27 35.22 64.80 62.81 64.47 95.32 95.11 99.10 16,506 13,517 14,745 2,757 2,079 2,123 95.84 106.89 97. 11 108.48 99.34 111. 18 97.49 109.09 96.20 107.66 43.38 43. 19 43.25 42.67 41.99 48.56 48.39 48.49 47.65 46.94 51.34 52.05 53.18 52.18 51.38 55.57 56.47 57.98 56.89 56.13 38.25 38.73 39.14 38.35 37.39 35.70 35.67 35.68 35.07 34.38 63.41 65.11 65.81 64.37 62.62 96.89 98.44 100.96 99.90 97.49 14,808 16,824 17,362 12,933 12,232 2,215 2,517 2,424 1,815 1,757 68.21 68.10 2,120 Week ending— 1974—Mar. 2. 9. 16. 23. 30. For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES Existing homes New homes Period Con tract rate (per cent) 1965.......................... 1966.......................... 1967.......................... 1968.......................... 1969.......................... 5.74 6.14 6.33 6.83 7.66 1970.......................... 1971.......................... 1972......................... 1973......................... Pur Loan chase amount price (thous. (thous. of dollars)of dollars) Con tract rate (per cent) Loan/ price ratio (per cent) .55 .72 .76 .83 .88 21.8 21.7 22.5 22.7 22.7 72.7 72.0 72.7 73.0 71.5 21.6 22.2 24.1 25.6 28.3 15.6 15.9 17.4 18.5 19.9 8.20 7.54 7.38 7.86 .92 .77 .81 .94 22.8 24.2 25.7 23.2 71.1 73.9 76.0 75.2 30.0 31.7 33.4 31.2 21.0 23.1 25.0 22.8 28.3 28.2 27.2 27.5 28.3 28.9 28.2 29.0 28.8 28.0 7.54 7.55 7.62 7.64 7.70 7.87 8.10 8.35 8.42 8.46 .95 .96 .93 .92 .91 .92 .97 .92 .94 .94 23.3 23.9 23.5 23.4 24.1 23.4 23.1 22.5 22.2 22.1 76.9 77.3 77.5 75.9 75.5 75.6 74.1 72.7 71.2 72.8 29.3 30.1 30.0 31.7 33.3 32.0 32.8 31.8 32.3 30.8 22.0 22.8 22.3 23.5 24.6 23.6 23.5 22.6 22.6 22.0 28.9 28.5 29.6 8.47 8.53 8.46 1.02 1.02 1.00 22.8 22.9 23.5 72.4 73.9 74.3 33.4 33.7 32.6 23.5 24.6 23.9 Loan / price ratio (per cent) .49 .71 .81 .89 .91 25.0 24.7 25.2 25.5 25.5 73.9 73.0 73.6 73.9 72.8 25.1 26.6 28.0 30.7 34.1 18.3 19.2 20.4 22.4 24.5 5.87 6.30 6.40 6.90 7.68 8.27 7.60 7.45 7.78 1.03 .87 .88 1.11 25.1 26.2 27.2 26.3 71.7 74.3 76.8 77.3 35.5 36.3 37.3 37.1 25.2 26.5 28.1 28.1 1973— Mar.............. Apr............... M ay............. June............. July.............. Aug.............. Sept.............. Oct............... Nov.............. D ec.............. 7.51 7.53 7.55 7.62 7.69 7.77 7.98 8.12 8.22 8.31 1.09 1.11 1.05 1.08 1.11 1.08 1.19 1.20 1.08 1.12 26.6 26.6 25.9 26.3 26.3 26.7 26.6 26.1 26.0 25.6 78.4 78.2 77.7 78.0 78.1 76.7 77.3 76.9 75.5 75.5 36.7 36.9 35.6 35.8 37.0 38.6 37.2 38.5 38.9 37.7 1974—Jan.' ............ Feb............... Mar*........... 8.33 8.40 8.42 1.16 1.33 1.36 26.4 25.9 26.5 76.3 76.5 77.3 38.8 37.8 39.2 For notes see opposite page. Pur Loan chase amount price (thous. of (thous. of dollars) dollars) Maturity (years) Maturity (years) Fees & charges (per cent) i Fees & charges (per cent) i A 32 STOCK MARKET CREDIT □ APRIL 1974 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 By source End of period Unregu lated 3 By type Margin stock Total Brokers Banks Convertible bonds Subscription issues Brokers Banks Brokers Banks Brokers Banks 1973—Feb..................................... Mar.................................... Apr..................................... M ay................................... June................................... July.................................... Aug.................................... Sept.................................... Oct..................................... Nov.................................... Dec..................................... 8,640 8,347 8,165 7,650 7,369 7,299 7,081 6,954 7,093 r6,774 6,382 7,773 7,468 7,293 6,784 6,416 6,243 6,056 5,949 5,912 5,671 5,251 867 879 872 866 953 1,056 1,025 1,005 1,181 r1,003 1,131 1974—Jan...................................... Feb..................................... 6,343 5,323 5,423 1,020 Nonmargin stock credit at banks Free credit balances at brokers 4 Margin accts. Cash accts. 800 7,500 7,200 813 804 7,040 802 6,540 6,180 885 6,010 976 949 5,830 929 5,730 5,690 r l ,105 5,460 1,027 5,050 1,070 248 244 232 224 215 216 210 204 203 197 189 50 48 49 47 53 64 61 60 59 60 46 25 24 21 20 21 17 16 15 19 14 12 17 18 19 18 15 16 15 16 17 r 16 15 1,951 1,862 1,952 1,992 1,973 1,957 1,952 1,909 1,878 *•1,917 1,866 431 442 389 413 396 379 348 379 419 464 454 1,770 1,719 1,536 1,564 1,472 1,542 1,462 1,632 1,713 1,685 1,700 5,130 5,230 182 183 45 11 10 14 1,799 442 420 1,666 1,604 961 1 Margin credit includes all credit extended to purchase or carry stocks or related equity instruments and secured at least in part by stock (see Dec. 1970 B u l l e t i n ) . Credit extended by brokers is end-of-month data for member firms of the New York Stock Exchange. June data for banks are universe totals; all other data for banks represent estimates for all commercial banks based on reports by a reporting sample, which ac counted for 60 per cent of security credit outstanding at banks on June 30, 1971. 2 In addition to assigning a current loan value to margin stock generally, Regulations T and U permit special loan values for convertible bonds and stock acquired through exercise of subscription rights. 3 Nonmargin stocks are those not listed on a national securities exchange and not included on the Federal Reserve System’s list of Over the Counter margin stocks. At banks, loans to purchase or carry nonmargin stocks are unregulated; at brokers, such stocks have no loan value. 4 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 of total debt, except as noted) (Per cent of total, except as noted) End of period Total debt (mil lions of dol lars)! 1973—F eb .. Mar.. A p r.. M ay. June. Ju ly .. Aug.. Sept.. Oct. . Nov.. D ec.. 1974—Jan... Feb... Equity class (per cent) End of period 80 or more 70-79 60-69 50-59 40-49 Under 40 7,500 7,200 7,040 6,540 6,180 6,010 5,830 5,730 5,690 5,460 5,050 5.3 5.7 4.8 4.9 4.9 5.8 5.0 5.0 7.2 5.4 5.8 7.8 7.5 7.3 7.2 7.1 8.8 8.4 13.9 10.0 6.1 7.7 14.7 15.9 13.4 12.7 13.2 17.7 16.4 18.9 19.9 12.0 14.4 23.9 23.1 19.8 18.7 17.5 22.7 19.6 23.9 22.6 16.9 17.4 22.5 22.7 22.4 21.9 22.1 25.3 24.2 23.5 22.1 19.5 20.3 25.6 25.1 32.4 34.9 35.3 19.7 26.4 16.8 18.2 40.1 34.2 5,130 5,230 5.5 5.4 8.0 7.4 14.2 13.3 22.6 22.6 25.8 28.0 24.0 23.3 1 See note 1 to table above. N ote.—Each customer’s equity in his collateral (market value of col lateral less net debit balance) is expressed as a percentage of current col lateral values. 1973—Feb....................... Net credit status Equity class of accounts in debit status Total balance (millions 60 per cent Less than of dollars) or more 60 per cent July...................... 35.8 36.3 35.3 35.8 35.8 35.9 35.9 37.4 38.5 37.5 39.4 49.8 47.9 46.9 45.0 43.5 46.7 45.6 53.1 46.7 42.2 40.0 14.4 15.7 18.0 19.1 20.7 17.4 18.5 9.4 14.8 20.3 20.6 5,770 5,790 5,660 5,670 5,750 5,740 5,650 5,740 5,860 5,882 5,935 1974—Jan....................... Feb....................... 38.3 39.4 42.7 43.3 18.0 24.9 6,596 6,740 N ote.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other collateral in the customer’s margin account or deposits of cash (usually sales proceeds) occur. APRIL 1974 □ SAVINGS INSTITUTIONS A 33 MUTUAL SAVINGS BANKS (In millions o f dollars) Securities Loans End of period Mort gage Other U.S. Govt. State and local govt. Corpo rate and other1 Cash Other assets Total assets— Total liabili ties and general reserve accts. Depos its2 Mortgage loan commitments3 classified by maturity (in months) Other General liabili reserve ac ties counts 3 or less 3-6 6-9 Total i i 1965................. 1966................. 44,433 47,193 862 1,078 5,485 4,764 320 251 5,170 5,719 1,017 953 944 1,024 58,232 60,982 52,443 55,006 1,124 1,114 4,665 4,863 1967................. 1968................. 1969................. 1970................. 1971................. 19724............... 50,311 53,286 55,781 57,775 62,069 67,563 1,203 1,407 1,824 2,255 2,808 2,979 4,319 3,834 3,296 3,151 3,334 3,510 219 194 200 197 385 873 8,183 10,180 10,824 12,876 17,674 21,906 993 996 912 1,270 1,389 1,644 1,138 1,256 1,307 1,471 1,711 2,117 66,365 71,152 74,144 78,995 89,369 100,593 60,121 64,507 67,026 71,580 81,440 91,613 1,260 1,372 1,588 1,690 1,810 2,024 4,984 5,273 5,530 5,726 6,118 6,956 742 811 584 619 1,047 1,593 1973—J a n .... F eb .... M ar.. . Apr__ M a y ... J un e... July. . . Aug---Sept.. . Oct___ Nov— Dec__ 68,021 68,352 68,920 69,426 69,988 70,637 71,219 71,713 72,034 72,367 72,760 73,231 3,624 4,030 3,970 3,831 4,099 3,959 3,819 3,986 4,200 4,181 4,424 3,871 3,489 3,419 3,458 3,388 3,376 3,346 3,190 3,037 2,945 3,007 2,948 2,957 935 986 1,028 1,080 1,076 1,125 1,093 999 957 939 925 926 22,190 22,389 22,509 22,598 22,615 22,562 22,683 22,277 21,799 21,276 21,150 21,383 1,319 1,331 1,576 1,582 1,629 1,775 1,555 1,551 1,491 1,501 1,519 1,968 2,055 2,070 2,058 2,089 2,116 2,273 2,202 2,227 2,345 2,285 2,264 2,314 101,632 102,577 103,518 103,994 104,899 105,677 105,761 105,789 105,771 105,557 105,991 106,651 92,398 92,949 94,095 94,217 94,744 95,706 95.355 94,882 95,183 94,944 95,259 96,496 2,221 2,540 2,285 2,589 2,904 2,650 3,044 3,496 3,134 3,139 3,201 2,566 7,014 7,088 7,139 7,189 7,251 7,321 7,362 7,411 7,453 7,474 7,530 7,589 1,569 1,729 1,816 1,904 1,792 1,711 1,626 1,302 1,411 1,318 1,272 1,250 915 862 886 888 913 1,020 906 840 762 771 685 598 688 732 826 725 712 573 636 718 589 510 479 405 1974—Jan... . 73,440 4,161 2,925 936 21,623 1,686 2,312 107,083 96,792 2,665 7,626 1,171 587 439 1 Also includes securities o f foreign governments and international organizations and nonguaranteed issues o f U.S. Govt, agencies. 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), D eposits Accum ulated fo r Paym ent o f Personal Loans, p. A-26. 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. Data include building loans beginning with Aug. 1967. Over 9 982 1,034 485 322 627 713 2,697 2,010 799 2,523 1,166 3,011 452 946 2,467 302 688 1,931 463 1,310 3,447 609 1,624 4,539 1,541 1,480 1,355 1,395 1,406 1,378 1,367 1,315 1,197 1,096 1,079 1,008 4,712 4,803 4,882 4,912 4,824 4,683 4,535 4,174 3,959 3,695 3,515 3,261 998 3,196 4 Balance sheet data beginning Jan. 1972 are reported on a gross-ofvaluation-reserves basis. The data differ somewhat from balance sheet data previously reported by National Assn. of Mutual Savings Banks which were net o f valuation reserves. For most items, however, the dif ferences are relatively small. N ote.—NAMSB data; figures are estimates for all savings banks in the United States and differ somewhat from those shown elsewhere in the Bulletin; the latter are for call dates and are based on reports filed with U.S. Govt, and State bank supervisory agencies. LIFE INSURANCE COMPANIES (In millions of dollars) Business securities Government securities End o f period Total assets Total United State and Foreign 1 States local Total Bonds Stocks Mort gages Real estate Policy loans Other assets Statement value: 1965. 1966. 1967. 1968. 158,884 167,022 177,832 188,636 11,679 10,837 10,573 10,509 5,119 4,823 4,683 4,456 3,530 3,114 3,145 3,194 3,030 2,900 2,754 2,859 67,599 69,816 76,070 82,127 58,473 61,061 65,193 68,897 9,126 8,755 10,877 13,230 60,013 64,609 67,516 69,973 4,681 4,883 5,187 5,571 7,678 9,117 10,059 11,306 7,234 7,760 8,427 9,150 Book value: 1966. 1967, 1968, 1969. 1970. 1971. 1972, 167,022 177,361 188,636 197,208 207,254 222,102 239,730 10,864 10,530 10,760 10,914 11,068 11,000 11,372 4,824 4,587 4,456 4,514 4,574 4,455 4,562 3,131 2,993 3,206 3,221 3,306 3,363 3,367 2,909 2,950 3,098 3,179 3,188 3,182 3,443 68,677 73,997 79,653 84,566 88,518 99,805 112,985 61,141 65,015 68,731 70,859 73,098 79,198 86,140 7,536 8,982 10,922 13,707 15,420 20,607 26,845 64,661 67,575 70,044 72,027 74,375 75,496 76,948 4,888 5,188 5,575 5,912 6,320 6,904 7,295 9,911 10,060 11,305 13,825 16,064 17,065 18,003 8,801 11,011 11,299 9,964 10,909 11,832 13,127 241,022 242,069 243,078 242,562 243,589 244,531 247,082 247,655 250,203 251,590 251,055 252,071 11,191 11,138 11,154 11,455 11,434 11,359 11,427 11,416 11,404 11,402 11,462 11,376 4,389 4,371 4,417 4,566 4,538 4,468 4,480 4,462 4,424 4,423 4,471 4,586 3,358 3,319 3,300 3,388 3,384 3,373 3,427 3,433 3,439 3,438 3,444 3,449 3,444 3,448 3,437 3,501 3,512 3,518 3,520 3,521 3,541 3,541 3,547 3,545 114,526 115,386 115,972 115,181 115,897 116,153 118,061 117,842 119,200 119,714 118,016 117,733 88,371 89,247 89,881 89,710 90,314 90,484 91,144 91,342 91,480 91,707 91,847 91,452 26,155 26,139 26,091 25,471 25,583 25,669 26,917 26,500 27,720 28,007 26,169 26,281 77,481 77,510 77,587 77,258 77,400 77,914 78,243 78,657 79,040 79,516 80,191 81,180 7,366 7,434 7,449 7,522 7,545 7,548 7,577 7,632 7,677 7,765 7,838 7,769 18,080 18,166 18,288 18,420 18,533 18,673 18,841 19,181 19,511 19,768 19,926 20,076 12,378 12,435 12,628 12,726 12,780 12,884 12,933 12,927 13,371 13,425 13,622 13,937 1973Feb.................................. Mar................................. Apr................................. M ay................................ June...................'........... July................................. Aug................................. Sept................................. Oct.................................. Nov................................. D ec................................. 1 Issues of foreign governments and their subdivisions and bonds of Figures are annual statement asset values, with bonds carried on an the International Bank for Reconstruction and Development. amortized basis and stocks at year-end market value. Adjustments for interest due and accrued and for differences between market and book N ote.—Institute o f Life Insurance estimates for all life insurance values are not made on each item separately but are included, in total in companies in the United States. “Other assets.” A 34 SAVINGS INSTITUTIONS □ APRIL 1974 SAVINGS AND LOAN ASSOCIATIONS fin m illions o f dollars) Assets End o f period Invest ment secur ities 1 Mort gages Liabilities Cash Other2 Total assets— Total liabilities 7,788 8,010 8,606 9,326 10,731 12,590 19,227 3,442 2,962 2,438 3,506 2,857 2,781 Mortgage loan com mitments outstanding at end of period 5 Savings capital Net worth 3 Bor rowed money4 Loans in process 143,534 152,890 162,149 176,183 206,023 243,127 272,358 124,493 131,618 135,538 146.404 174,197 206,764 227,254 9,916 10,691 11,620 12,401 13,592 15,240 17,108 4,775 5,705 9,728 10,911 8,992 9,782 17,100 2,257 2,449 2,455 3,078 5,029 6,209 4,676 2,093 2,427 2,808 3,389 4,213 5,132 6,220 3,042 3,631 2,824 4,452 7,328 11,515 9,532 Other 1967..................................... 1968..................................... 1969..................................... 1970..................................... 1971..................................... 1972..................................... 1973...................................... 121,805 130,802 140,232 150,331 174,250 206,182 232,104 9,180 11,116 10,873 13,020 18,185 21,574 21,027 1973—Feb........................... Mar......................... Apr.......................... M ay......................... June......................... July.......................... Aug.......................... Sept.......................... Oct........................... N o v .. ...................... D ec.......................... 210,054 213,050 216,037 219,283 222,580 225,265 227,778 229,182 230,195 231,089 232,104 24,082 23,880 23,803 23,930 23,220 22,628 21,001 20,025 20,618 21,220 21,027 16,101 16,989 17,489 17,873 17,920 18,296 18,704 19,008 19,295 19,449 19,227 250,237 253,919 257,329 261,086 263,720 266,189 267,483 268,215 270,108 271,758 272,358 211,945 215,643 216,474 218,351 221,624 221,399 220,243 222,086 223,033 224,304 227,254 15,837 15.737 16,044 16,415 16,225 16,550 16,896 16,782 17,041 17,330 17,108 9,351 9,892 11,269 11,689 12,698 14,226 15,634 16,255 16,435 16,312 17,100 6,079 6,310 6,532 6,711 6,754 6,686 6,449 6,064 5,535 5,011 4,676 7,025 6,337 7,010 7,920 6,419 7,328 8,261 7,028 8,064 8,801 6,220 13,471 14,439 14,939 15,068 14,705 13,710 12,249 10,799 9,909 9,717 9,532 1974—Jan........................... Feb.*....................... 232,980 234,433 22,378 23,322 19,502 19,899 274,860 277,654 229.435 231,247 17.333 17,650 16,663 16,425 4,380 4,308 7,049 8,024 9,788 10,676 1 Investment securities included U.S. Govt, securities only through 1967. Beginning 1968 the total reflects liquid assets and other investment se curities. Included are U.S. Govt, obligations, Federal agency securities, State and local govt, securities, time deposits at banks, and miscellaneous securities, except stock o f the Federal Home Loan Bank Board. Com pensating changes have been made in “Other assets.” 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings and fixtures. See also notes 1, 5, and 6. 3 Includes net undistributed income, which is accrued by most, but not all, associations. 4 Consists o f advances from FHLBB and other borrowing. 5 Data comparable with those shown for mutual savings banks (on preceding page) except that figures for loans in process are not included above but are included in the figures for mutual savings banks. 6 Beginning Jan. 1973, participation certificates guaranteed by the Federal Home Loan Mortgage Corporation, loans and notes insured by the Farmers Home Administration and certain other Governmentinsured mortgage-type investments, previously included in mortgage loans, are included in other assets. The effect of this change was to reduce the mortgage total by about $0.6 billion. Also, GNMA-guaranteed, mortgage-backed securities of the pass through type, previously included in cash and investment securities are included in other assets. These amounted to about $2.4 billion at the end of 1972. N ote.—FHLBB data; figures are estimates for all savings and loan assns. in the United States. Data are based on monthly reports o f insured assns. and annual reports of noninsured assns. Data 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 of period Liabilities and capital Cash and de posits Deben tures and notes (L) Loans to cooper atives (A) Deben tures 1 ,395 1,402 1,478 1,607 1,618 1,756 5,348 6,872 10,541 15,502 17,791 19,791 4,919 6,376 10,511 15,206 17,701 19,238 1,323 1,291 1,143 1,261 1,453 1,183 1,091 1,178 1,270 1,545 1,745 1,891 1,943 1,981 1,991 2,008 2,035 2,064 2,089 2,107 2,112 2,122 20,181 20,571 20,791 21,087 21,413 21,772 22,319 22,826 23,348 23,912 24,175 1,692 1,936 2,246 2,294 24,424 24,541 Invest ments 4,386 5,259 9,289 10,614 7,936 7,979 2,598 2,375 1,862 3,864 2,520 2,225 127 126 124 105 142 129 4,060 4,701 8,422 10,183 7,139 6,971 1,432 1,383 1,041 2,332 1,789 1,548 1973— F eb... 7,944 M a r.. 8,420 9,429 Apr... M a y .. 10,155 June.. 11,145 July. . 12,365 Aug. . 13,511 Sept. . 14,298 Oct.. . 14,799 Nov. . 14,866 D ec... 15,147 2,421 1,938 2,087 2,702 2,516 2,126 2,016 2,908 3,498 3,649 3,537 106 108 111 95 108 103 111 102 106 77 157 7,220 7,220 8,415 9,615 10,215 11,213 12,562 14,062 15,362 15,362 15,362 15,188 14,904 2,843 2,680 121 116 14,556 13,906 1967............... 1968............... 1969............... 1970............... 1971............... 1972.............. 1974—Jan.. . F eb... Capital stock N ote.—Data from Federal Home Loan Bank Board, Federal National Mortgage Assn., and Farm Credit Admin. Among omitted balance sheet items are capital accounts o f all agencies, except for stock o f FHLB’s. Bonds, debentures, and notes are valued at par. They include only publicly Banks for cooperatives Mort gage loans (A) Mem ber de posits Ad vances to mem bers Bonds and notes Federal National Mortgage 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 2,298 1,253 1,334 1,473 1,755 1,801 1,944 19,402 19,985 20,056 20,225 20,364 20,843 21,186 21,537 22,243 22,404 23,001 2,936 2,896 2,859 2,765 2,725 2,811 2,865 2,738 2,711 2,662 2,577 23,131 23,092 3,123 3,211 Federal land banks Bonds (L) Mort gage loans (A) 3,411 3,654 4,275 4,974 5,669 6,094 3,214 3,570 4,116 4,799 5,503 5,804 5,609 6,126 6,714 7,186 7,917 9,107 4,904 5,399 5,949 6,395 7,063 8,012 2,188 2,188 2,465 2,370 2,316 2,365 2,310 2,560 2,728 2,704 2,670 6,179 6,414 6,555 6,777 6,958 6,981 7,065 7,170 7,130 7,029 7,198 5,969 6,076 6,314 6,460 6,645 6,745 6,727 6,833 6,901 6,890 6,861 9,387 9,591 9,767 9,953 10,117 10,256 10,441 10,592 10,781 10,926 11,071 8,280 8,280 8,836 8,836 8,836 9,388 9,390 9,388 9,838 9,838 9,838 2,741 2,828 7,163 7,277 6,956 7,029 11,245 11,402 10,048 10,282 (L) offered securities (excluding, for FHLB’s, bonds held within the FHLB System) and are not guaranteed by the U.S. Govt.; for a listing of these securities, see table on opposite page. Loans are gross o f valuation reserves and represent cost for FNM A and unpaid principal for other agencies- A APRIL 1974 □ FEDERALLY SPONSORED CREDIT AGEI ISSUES OF FEDERALLY SPONSORED AGENCIES, FEBRUARY 28, Amount (millions of dollars) 300 700 173 400 800 218 1,000 250 400 500 700 265 300 300 500 400 350 600 300 300 600 300 500 500 200 300 300 300 500 350 300 200 200 200 400 200 400 350 140 150 150 2,244 200 248 250 250 53 6 71 35 10 21 81 200 Agency, and date of issue and maturity Federal National Mortgage Association— Cont. Debentures: 12/10/71 - 3/11/74___ 4/10/70 - 3/11/74......... 8/5/70 - 6/10/74.......... 11/10/71 - 6/10/74........ 9/10/69 - 9/10/74......... 2/10/71 -9 /1 0 /7 4 ........... 5/10/71 - 12/10/74......... 9/10/71 - 12/10/74........ 11/10/70 - 3/10/75___ 10/12/71 - 3/10/75___ 4/12/71 - 6/10/75........... 10/13/70 - 9/10/75. . .. 3/12/73 - 9/10/75........... 3/10/72 - 12/10/75___ 9/10/73 - 12/10/75........ 3/11/71 - 3/10/76........... 6/12/73 - 3/10/76........... 6/10/71 - 6/10/76........... 2/10/72 - 6/10/76........... 11/10/71 - 9/10/76........ 6 /1 2 /7 2 -9 /1 0 /7 6 ........... 7/12/71 - 12/10/76......... 12/11/72- 1 2 /1 0 /7 6 .... 2/13/62 - 2/10/77......... 9/11/72 - 3/10/77.......... 12/10/70 - 6/10/77___ 5/10/71 - 6/10/77........... 12/10/73 - 6/10/77........ 9/10/71 -9 /1 2 /7 7 ........... 9/10/73 - 9/12/77.......... 7/10/73 - 12/12/77........ 10/1/73 - 12/12/77........ 6/12/73 - 6/12/78.......... 10/12/71 - 12/11/78. . . 12/10/73 - 3/12/79........ 9/10/73 - 6/11/79.......... 6 /1 2 /7 2 - 9/10/79........... 12/10/71 - 12/10/79. . . 2/10/72 - 3/10/80........... 2/16/73 - 7/31/80.......... 2/16/73 - 7/31/80.......... 10/1/73 -9 /1 0 /8 0 ........... 1/16/73 - 10/30/80........ 12/11/72 - 1 2 /1 0 /8 0 .... 6/29/72 - 1/29/81........... 3/12/73 - 3/10/81........... 4/18/73 - 4/10/81........... 3/21/73 - 5/1/81............. 3/12/73 - 5/1/81............. 1/21/71 - 6/10/81 ......... 9/10/71 -9 /1 0 /8 1 .......... 6 /2 8 /7 2 - 5/1/82............. 2/10/71 - 6/10/82........... 9/11/72 - 9/10/82.......... 12/10/73 - 12/10/82. . . . 3/11/71 - 6/10/83........... 6/12/73 - 6/10/83........... 11/10/71 - 9/12/83........ 4/12/71 - 6/11/84........... 12/10/71 - 12/10/84. . . 3/10/72 - 3/10/92......... 6/12/72 - 6/10/92.......... 12/11/72 - 12/10/97___ Cou Amount pon (millions rate of dollars) 5.45 7.75 7.90 5.70 7.85 5.65 6.10 6.45 7.55 6.35 5.25 7.50 6.80 5.70 8.25 5.65 7.13 6.70 5.85 6.13 5.85 7.45 6.25 41/2 6.30 6.38 6.50 7.20 6.88 7.85 7.25 7.55 7.15 6.75 7.25 7.85 6.40 6.55 6.88 5.19 3.18 7.50 4.46 6.60 6.15 7.05 6.59 4.50 5.77 7.25 7.25 5.84 6.65 6.80 7.35 6.75 7.30 6.75 6.25 6.90 7.00 7.05 7.10 400 350 400 350 250 300 250 450 300 600 500 350 650 500 300 500 400 250 450 300 500 300 500 198 500 250 150 500 300 400 500 500 600 300 500 300 300 350 250 1 9 400 5 300 156 350 26 18 2 250 250 58 250 200 300 200 300 250 200 250 200 200 200 Agency, and date of issue and maturity moui lillioi jo lla Banks for cooperatives Debentures: 10/1/73 - 3/4/74.............. 10/1/73 - 4/1/74.............. 11/1/73 - 5/1/74............. 12/3/73 - 6/3/74 .............. 1/2/74 - 7/1/74................ 2/4/74 - 8/1/74................ 10/1/73 -4 /4 /7 7 ............. 316 332 354 607 462 556 200 Federal intermediate credit banks Debentures: 6/4/73 - 3/4/74............... 7/2/73 -4 /1 /7 4 ............... 8/1/73 - 5/1/74................ 9/4/73 - 6/3/74............... 10/1/73 - 7/1/74............. 1/4/71 - 7/1/74.............. 11/1/73 - 8/1/74............. 12/3/73 -9 /3 /7 4 ............. 1/2/74 - 10/1/74............. 2/4/74 - 11/4/74............. 5/1/72 - 1/2/75............... 1/3/72 - 7/1/75............... 3/1/73 - 1/5/76............... 7/2/73 - 1/3/77............... 1/2/74 - 1/3/78............... 664 421 538 626 699 224 583 516 561 754 240 302 261 236 406 Federal land banks Bonds: 10/20/70 - 4/22/74 9/15/72 -4/22/74............ 10/20/71 - 7/22/74 4/20/71 - 10/21/74 2/20/70 - 1/20/75.......... 4/23/73 - 1/20/75............ 4/20/65 - 4/21/75 7/20/73 -4/21/75........... 2/15/72 - 7/21/75........... 7/20/71 - 10/20/75 10/23/73 - 10/20/75, . 4/20/72 - 1/20/76............ 2/21/66 - 2/24/76 1/22/73 - 4/20/76............ 7/20/66 - 7/20/76.......... 1/21/74 - 7/20/76........... 4/23/73 - 10/20/76 . . . 7/20/73 - 7/20/77............ 10/20/71 - 10/20/77 2/20/63 - 2/20/73-78___ 5/2/66 - 4/20/78............ 7/20/72 - 7/20/78.......... 10/23/73 - 10/19/78 . . 2/20/67 - 1/22/79............ 1/21/74 - 1/22/79............ 9/15/72 - 4/23/79............ 2/20/74 - 7/23/79............ 10/23/72 - 10/23/79 1/22/73 - 1/21/80............ 7/20/73 - 7/21/80............ 2/23/71 -4/20/81............ 4/20/72 - 4/20/82............ 4/23/73 - 10/20/82 ....... 10/23/73 - 10/20/83........ by the U .S. G o v t.; see also note to table at b ottom o f opposite page. 7.30 5.85 5.85 5.30 m 7.15 4% 7.65 5.70 7.20 7.40 6Va 5.00 61/4 5% 7.05 7. 15 71/2 6.35 41/s sy* 6.40 7.35 5.00 7. 10 6.85 7 . 15 6.80 6.70 71/2 6.70 6.90 7.30 7.30 354 350 326 300 220 300 200 300 425 300 362 300 123 373 150 360 450 550 300 148 150 269 550 285 300 235 389 400 300 250 224 200 239 300 A 36 FEDERAL FINANCE o APRIL 1974 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions o f dollars) Means of financing U.S. budget Borrowings from the public : Receipt-expenditure account Period Net ex pendi tures Budget receipts Fiscal year: 197 0 197 1 197 2 197 3 Half year: 1972—Jan.-June. July-D ee.. 1973—Jan.-June. July-D ee.. Net lend ing 193,743 194,456 188,392 210,318 208,649 232,225 Budget out lays1 Budget surplus or deficit (-) 2,131 196,588 -2,8 4 5 1,107 211,425 -23,033 231,876 -23,227 246,526 -14,301 Less: Cash and monetary assets Less: Invest Public Plus: ments by Govt, Equals: Trea Less: Total debt Agency accounts sury Special borrow operat securi securi notes3 ing ties ties ing Special Other balance issues Other 17,198 -1,739 9,386 27,211 -347 6,616 29,131 -1,269 6,813 30,881 216 12,029 .. .. .. .. 115,549 106,062 126,164 124,253 120,319 118,579 127,940 130,360 -4 ,8 5 0 3,130 -12,517 22,038 -1 ,7 7 6 8,844 -6 ,1 0 7 11,756 Month: 1973—Feb. r Mar............... Apr................ May............... June............... July............... A ug............... Sept............... Oct................. N ov............... Dec................ 18,172 15.987 25,860 16,584 28,504 18,121 21,291 25,007 17,637 20,208 21.987 20,202 20,806 22,306 20,157 20,892 22,627 22,139 20,736 23,092 22,099 19,686 -2,031 4,771 -4,820 3,768 3,554 -1,543 275 -3,573 803 7,612 862 -4,486 -847 2,842 -406 4,271 -5,455 1,037 1,561 -1,891 2,302 5,861 1974—Ja................... n 23,476 20,226 Feb................ 23,671 21,030 -195 -1,714 -804 2,503 Other means of financ ing, net4 676 800 1,607 -207 5,397 19,448 19,442 19,275 2,151 710 1,362 2,459 -9 8 2 -581 -979 3,586 1,108 6,255 -1,613 -4,128 1,089 -823 654 824 -2 ,1 1 4 17,386 1,889 6,013 -1,189 956 1,503 -2,202 2,497 8,377 -1,520 -5,434 -8 8 1,302 -191 -2,299 -9 119 780 584 27 206 -4 9 -721 -5 6 234 -4 3 1,968 68 3,414 -174 325 9 1,258 568 301 3,137 -173 40 -756 -2 2 29 -306 273 -3 ,5 1 0 3,141 -1 7 4 5,574 -3,016 3,863 3,005 -2 ,1 5 9 -1 ,9 7 0 -2 ,3 6 9 -713 -563 564 1,395 2,202 3,128 408 1,152 1,220 -5,924 4,344 -5,398 -4,105 5,207 -2,588 -1,010 5,693 -134 -8 3 1,164 -1,141 414 -5 4 4 151 346 -4 3 -4 8 -54 -773 -162 168 -2,877 -150 876 -6 6 0 477 12 -1 7 4,010 6,351 5,790 5,396 -984 2,478 55 169 -1,558 2,883 988 -1,522 -485 -743 -2,544 718 1,431 -1,368 209 554 1,681 -8 4 -1,995 Selected balances Federal securities Treasury operating balance End of period F.R. Banks Tax and loan accounts Other deposi taries 5 Total Public debt securities Agency securities Less: Investments of Govt, accounts Special issues Other Less: Special notes3 Equals: Total held by public Memo: Debt of Govt.sponsored corps.— Now private6 Fiscal year: 1970........................ 1971........................ 1972........................ 1973........................ 1,005 1,274 2,344 4,038 6,929 7,372 7,934 8,433 111 109 5 139 106 8,045 8,755 10,117 12,576 370,919 398,130 427,260 458,142 12,510 12,163 10,894 11,109 76,124 82,740 89,539 101,738 21,599 22,400 24,023 24,093 825 825 825 825 284,880 304,328 323,770 343,045 35,789 36,886 41,044 51,325 Calendar year: 1972......................... 1973........................ 1,856 2,543 8,907 7,760 310 70 11,073 10,374 449,298 469,898 11,770 11,586 95,924 107,135 23,164 24,467 825 825 341,155 349,058 43,459 59,857 Month: 1973—Feb.............. Mar............. Apr.............. May............. June............. July............. Aug............. Sept............. Oct............... Nov.............. Dec.............. 2,073 2,882 4,162 3,242 4,038 2,867 847 1,626 1,839 1,945 2,543 9,401 9,744 9,683 4,679 8,433 4,203 2.217 6 ^582 3,781 2,666 7,760 310 309 311 311 106 108 8 71 71 70 70 11,784 12,935 14,156 8,232 12,576 7,178 3,072 8,279 5,691 4,681 10,374 454,838 458,606 457,063 457,338 458,142 459,003 461,845 461,439 462,476 464,037 469,898 11,779 11,806 11,084 11,041 11,109 11,118 11,419 11.459 11,488 11,760 11,586 95,826 96,413 96,356 98,324 101,738 102,996 106,133 105,378 105,071 101,561 107,135 23,430 23,632 23,583 23,817 24,093 23,968 24,536 24,362 24,341 27,482 24,467 825 825 825 825 825 825 825 825 823 825 825 346,537 349,542 347,383 345,414 343,045 342,332 341,769 342,333 343,727 345,930 349,058 45,400 45,566 47,905 49,731 51,325 52,780 54,409 56,691 59,330 59,317 59,857 1974—Jan............... Feb.............. 2,844 2,017 7,628 5,579 69 69 10,542 7,665 468,184 470,687 11,598 11,581 106,151 108,629 24,521 24,691 825 825 348,285 348,123 59,566 n.a. 1 Equals net expenditures plus net lending. 2 The decrease in Federal securities resulting from conversion to private ownership of Govt.-sponsored corporations (totaling $9,853 million) is not included here. In the bottom panel, however, these conversions de crease the outstanding amounts of Federal securities held by the public mainly by reductions in agency securities. The Federal National Mortgage Association (FNMA) 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 Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of 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 “Other deposi taries” (deposits in certain commercial depositaries that have been con verted from a time to a demand basis to permit greater flexibility in Treasury cash management). 6 Includes debt of Federal home loan banks, Federal land banks, R.F.K. Stadium Fund, FNMA (beginning Sept. 1968), and FICB and banks for cooperatives (both beginning Dec. 1968). N o t e . —Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. APRIL 1974 □ FEDERAL FINANCE A 37 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Total Pres. Elec With tion Non Re held Cam with funds paign held Fund1 Social insurance taxes and contributions Corporation income taxes Individual income taxes Employment taxes and Gross Re contributions2 Un- Other Net empl. net re total re insur. ceipts ceipts funds Pay 3 Selfroll taxes empl. Net total Excise Cus taxes toms Estate Misc. and re gift ceipts4 Fiscal year: 197 0 197 1 197 2 197 3 193,743 188,392 208,649 232,225 77,416 76,490 83,200 98,093 26,236 24,262 25,679 27,019 45,298 48,578 53,914 64,542 15,705 16,614 15,477 16,260 2,430 2,591 3,287 3,188 3,644 3,735 5,436 4,917 3,424 3,858 3,633 3,921 Half year: 1972—Jan.-June. .. July-Dee.. .. 1973—Jan.-June. .. July-Dee.. .. 115,469 106,062 126,165 124,253 44,751 46,056 52,034 52,961 20,090 13,569 51,272 21,664 1,312 24,445 1,877 4,736 1,764 30,925 165 2,437 1,773 26,867 5.784 688 51,152 15,315 1,459 22,493 21,235 21,179 52,091 23,730 1,434 30,013 2,206 3,616 1,841 37,675 1,494 16,589 29,965 6,207 999 201 2,974 1,967 35,109 6,516 8,244 8,016 8,966 1,449 1,551 1,637 1,633 3,041 2,333 2,584 2,514 1,915 2,059 1,865 2,768 Month: 1973—Feb.. M ar.. Apr.. May. June. July. . Aug., Sept.. O ct.., N ov.. Dec.. '18,172 15.987 25,860 16,584 28,537 18,121 21,291 25,007 17,637 20,209 21.987 ,506 ,748 ,648 ,813 ,168 ,487 ,085 940 752 ,811 887 1,186 1,244 1,318 1,446 1,386 1,538 1,434 1,436 1,459 1,563 1,536 255 278 262 280 273 276 303 238 291 301 224 568 489 330 466 335 398 494 373 454 462 333 '291 360 348 264 360 409 308 597 437 501 515 378 5,232 1,263 346 8,400 1,315 304 239 455 423 334 429 13,240 90,412 35,037 2,208 37,190 1,942 14,522 86,230 30,320 3,535 39,751 1,948 14,143 94,737 34,926 2,760 44,088 2,032 21,866 103,246 39,045 2,893 52,505 2,371 768 1,494 9,124 1,444 3,735 681 451 3,903 550 261 362 1,104 6,833 6,185 6,433 597 354 257 135 71 66 115 3,409 11,587 3,825 12,306 8,814 9,279 11,707 9,230 10,006 9,134 865 5,208 5,915 1,219 8,983 1,552 904 5,477 1,515 939 6,201 5,076 45 14,327 1,722 945 1,851 8,601 1,066 1974—Jan................... 23,476 9,296 Feb................... 20,226 9,505 193 342 258 296 188 202 209 230 462 287 105 3,465 3,673 4,357 6,051 684 5,900 167 63 4,771 186 444 4,297 1,316 6,662 253 2,156 4,548 145 95 4,608 382 7,087 1,357 4,812 103 177 24 217 4,119 825 5,578 89 3,760 160 4,439 248 7,080 170 214 244 761 2,700 3,206 3,437 3,614 279 320 302 308 293 346 333 317 351 321 299 '7,030 5,340 6,359 9,380 5,081 5,336 8,778 5,409 4,712 6,724 4,149 Budget outlays Nat Com merce Agri ural and cul re ture sources transp. Com. mun. deve lop. and hous ing Educa tion Health and and man wel fare power Gen eral reve nue shar ing Intragovt, trans ac tions 5 Total Na tional de fense 19756................... 231 876 246,526 274,660 304,445 78 336 76 *027 80,573 87,729 3 786 3* 182 3,886 4,103 3 422 3*311 3,177 3,272 7 061 6*051 4,039 2,729 3,759 ’556 609 3,128 11 197 12,520 13,521 13,400 4 216 4,162 5,450 5,667 10,198 10,821 10,819 11,537 81,536 91,230 108,263 126,353 10,747 12,004 13,285 13,612 20,584 22,785 27,754 29,122 4,889 —7,858 5,619 76,636 -8 ,3 7 8 6,800 6,147 -9 ,9 6 3 6,774 6,174 -10,717 Half year: 1972—Jan.-June. July-Dee.. 1973—Jan.-June. July-Dee.. 120,319 118,578 127,940 130,360 42,583 35,229 40,677 37,331 2,034 1,639 1,542 1,617 1,645 1,676 1,635 1,501 1,062 4,616 1,435 3,472 1,807 330 227 763 5,167 6,199 6,320 7,387 2,035 2,637 1,525 3,215 5,843 5,133 5,688 4,772 43,405 43,212 48,018 48,978 5,744 5.740 6,264 6,518 10,534 10,619 12,181 13,440 2,497 2,869 2,749 3,088 Month: 1973—F eb. r Mar.......... Apr........... M ay......... June......... July.......... Aug.......... Sept.......... Oct............ N ov.......... D ec........... 20,202 20,806 22,306 20,157 20,814 22,607 22,139 20,736 23,092 22,099 19,686 6,238 6,963 6,417 6,401 8,015 4,878 6,772 6,095 6,607 6,900 6,079 230 323 237 136 486 308 327 205 282 276 219 241 301 265 255 301 278 262 246 248 246 221 431 -7 7 368 -155 -126 2,011 440 -3 5 503 782 -228 230 310 324 298 118 942 573 422 416 424 -1 3 0 557 1,072 793 907 1,434 2,104 1,090 957 1,260 912 1,064 368 270 243 -148 309 911 779 712 561 36 316 906 786 788 1,066 1,336 954 661 955 805 619 111 7,941 7,565 8,058 8,124 8,234 7,792 7,935 8,302 8,040 8,373 8,534 1,046 1,064 1,114 1,017 866 1,099 1,054 970 1,058 1,194 1,143 2,052 2,097 2,120 2,165 2,004 2,184 2,159 2,392 2,135 2,401 2,169 350 462 409 466 452 563 466 643 479 438 498 1974—Ja.............. n 23,671 Feb........... 21,030 6,793 6,509 351 224 251 231 756 138 886 363 331 198 983 932 9,067 8,979 1,204 1,088 2,353 2,466 636 520 Period Fiscal year: 197 2 197 3 1 9 7 4 6 ....................... Intl. affairs Space re search -5 4 4 581 1 Collections of these receipts, totaling $2,427 million for fiscal year 1973, were included as part of non withheld income taxes prior to Feb. 1914. 2 Old-age, disability, and hospital insurance, and Railroad Retirement accounts. 3 Supplementary medical insurance premiums and Federal employee retirement contributions. 4 Deposits of earnings by Federal Reserve Banks and other miscellane ous receipts. 5 Consists of Government contributions for employee retirement and of interest received by trust funds. Vet erans Inter est Gen eral govt. -4 ,0 3 6 2,617 -4 ,0 3 9 4,019 -4 ,3 3 9 3,032 -4 ,7 5 3 9 1,493 3 i ,495 -3 16 1,494 29 1,532 778 -3 9 7 -329 -3 2 4 -377 -2 ,6 1 6 -8 5 0 -6 7 0 -849 -8 5 0 -717 -8 1 6 -929 -677 6 Estimates presented in the Jan. 1975 Budget Document. Breakdowns do not add to totals because special allowances for contingencies, Federal pay increase (excluding Department of Defense), and acceleration of energy research and development, totaling $300 million for fiscal 1974, and $1,561 million for fiscal 1975, are not included. 7 Contains retroactive payments of $2,617 million for fiscal 1972. N o t e .— Half years may not add to fiscal year totals due to revisions in series that are not yet available on a monthly basis. A 38 U.S. GOVERNMENT SECURITIES □ APRIL 1974 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions o f dollars) Public issues End of period Total gross public debt 1 Marketable Total Total Bills Con vert ible Bonds 2 bonds Certifi cates Notes 30.0 6.0 10.1 33.6 119.5 Nonmarketable Sav Foreign ings Total 3 issues 4 bonds & notes 1941—Dec. 1946—Dec. 57.9 259.1 50.5 233.1 41.6 176.6 2.0 17.0 1967—Dec. 1968—Dec. 1969—Dec. 1970—Dec. 344.7 358.0 368.2 389.2 284.0 296.0 295.2 309.1 226.5 236.8 235.9 247.7 69.9 75.0 80.6 87.9 61.4 76.5 85.4 101.2 95.2 85.3 69.9 58.6 2.6 2.5 2.4 2.4 54.9 56.7 56.9 59.1 1971—Dec. 1972—Dec. 424.1 449.3 336.7 351.4 262.0 269.5 97.5 103.9 114.0 121.5 50.6 44.1 2.3 2.3 1973—Mar. Apr. May June July. Aug. Sept. O ct., Nov. Dec. 458.6 457.1 457.3 458.1 459.0 461.8 461.4 462.5 464.0 469.9 360.4 358.9 357.1 354.6 354.2 353.8 354.1 355.5 360.5 360.7 269.8 267.8 265.9 263.0 262.7 262.4 262.4 264.0 270.2 270.2 105.0 103.2 103.0 100.1 99.9 101.8 99.8 101.6 107.7 107.8 120.2 120.2 117.8 117.8 117.8 118.7 120.7 120.7 124.6 124.6 44.6 44.5 45.1 45.1 45.0 42.0 41.9 41.8 37.8 37.8 1974—Jan.. Feb. Mar. 468.2 470.7 474.5 360.1 360.0 364.2 270.1 269.7 273.6 107.8 107.9 111.9 124.6 126. 1 126. 1 37.7 35.7 35.6 1 Includes non-interest-bearing debt (of which $618 million on Mar. 31, 1974, was not subject to statutory debt limitation). 2 Includes Treasury bonds and minor amounts of Panama Canal and postal savings bonds. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, and Rural Electrification Administration bonds; before 1954, Armed Forces leave bonds; before 1956, tax and savings notes; and before Oct. 1965, Series A investment bonds. 8.9 56.5 Special issues 5 6.1 49.8 7.0 24! 6 3.1 4.3 3.8 5.7 51.7 52.3 52.2 52.5 57.2 59.1 71.0 78.1 72.3 79.5 16.8 20.6 54.9 58.1 85.7 95.9 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 88.3 88.7 88.9 89.4 89.2 89.1 89.5 89.2 88.0 88.2 28.3 28.5 28.3 28.5 28.2 27.9 28.2 27.8 26.1 26.0 59.0 59.3 59.7 59.9 60.2 60.3 60.3 60.5 60.8 60.8 96.4 96.4 98.3 101.7 103.0 106.1 105.4 105.1 101.6 107.1 2.3 2.3 2.3 87.7 88.1 88.3 25.3 25.4 25.2 61.0 61.3 61.6 106.2 108.6 108.5 4 Nonmarketable certificates of indebtedness, notes, and bonds in the Treasury foreign series and foreign currency series issues. 5 Held only by U.S. Govt, agencies and trust funds and the Federal home loan banks. N o t e . —Based on Daily Statement of 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 Total 1939—Dec................ 1946—Dec................ 41.9 259. 1 6.1 27.4 2.5 23.4 1967—Dec................ 1968—Dec................ 1969—Dec................ 1970—Dec................ 344.7 358.0 368.2 389.2 73.1 76.6 89.0 97.1 1971-D ec................ 1972—Dec................ 424. 1 449.3 1973—Mar............... Apr................ May............... June.............. July............... Aug............... Sept............... Oct................. Nov............... Dec................ 1974—Jan................. Feb................ End of period Foreign and inter national 1 Other misc. inves tors 2 7.5 20.0 .2 2. 1 .3 9.3 51.2 51.9 51.8 52. 1 '22.3 '23.3 '29.0 '29. 1 15.8 14.3 11.2 20.6 19.9 21.9 25.0 19.9 25.4 28.9 54.4 57.7 '18.8 '16.2 46.9 55.3 15.6 '17.0 11.2 10.0 10.8 9.8 10.3 11.5 9.2 10.2 11.1 10.9 29.4 29.2 28.6 28.8 28.4 27.7 29.0 28.5 28.9 29.2 58.6 58.9 59.2 59.5 59.7 59.8 59.8 60.0 60.3 60.3 16.8 16.6 16.5 16.4 17.0 17.2 17.3 17.0 16.9 16.9 63. 1 61.7 61. 1 60.2 59.7 59.2 58.5 57.5 56.2 55.6 '15.5 '17.2 '18.4 '16.6 '15.8 '17.3 '18.9 '17.9 '18.9 '19.3 10.7 10.9 29.9 30.7 60.5 60.8 16.9 17.0 52.8 53.6 21.1 21.2 Mutual 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 49.1 52.9 57.2 62. 1 222.4 228.5 222.0 229.9 63.8 66.0 56.8 62.7 '4 .2 '3.8 '3. 1 r3 .1 r9 .0 '•8.4 '7 .6 '7.4 12.2 14.2 10.4 7.3 24. 1 24.9 27.2 27.8 106.0 116.9 70.2 69.9 247.9 262.5 65.3 67.7 r3. 1 r3 .4 n. 0 '6.6 11.4 9.8 458.6 457.1 457.3 458.1 459.0 461.8 461.4 462.5 464.0 469.9 117.9 117.9 120.1 123.4 125.0 128.7 127.8 127.4 127. 1 129.6 74.3 75.5 74.1 75.0 77.1 76. 1 76.2 78.5 77.1 78.5 266.4 263.7 263.1 259.7 256.9 257.1 257.4 256.5 259.8 261.7 62.0 60.5 58.9 58.8 56.5 55.1 55.4 56.3 58.5 60.3 '3 .4 r3.4 '3. 3 '3. 3 r3 .1 r2 .9 '2.9 r2.9 r2.9 r2.9 >-6.5 r6. 3 '6.3 r6. 3 '6.4 '6.3 '6.3 '6.3 '6.2 '6.4 468.2 470.7 128.7 131.3 78.2 78.2 261.2 261.1 60.2 58.2 2.8 2.8 6.3 6.0 1 Consists of investments of foreign and international accounts in the United States. 2 Consists of savings and loan assns., nonprofit institutions, cor porate pension trust funds, and dealers and brokers. Also included are certain Govt, deposit accounts and Govt.-sponsored agencies. N ote.—Reported data for F.R. Banks and U.S. Govt, agencies and trust funds; Treasury estimates for other groups. Individuals Com mercial banks Other Savings bonds securities The debt and ownership concepts were altered beginning with the Mar. 1969 Bulletin . The new concepts (1) exclude guaranteed se curities and (2) remove from U.S. Govt, agencies and trust funds and add to other miscellaneous investors the holdings of certain Govt.-sponsored but privately owned agencies and certain Govt, deposit accounts. APRIL 1974 o U.S. GOVERNMENT SECURITIES A 39 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions o f dollars) Within 1 year Type of holder and date All holders: 1971—Dec. 1972—Dec. 1973—Dec. 1974—Jan. Feb. 1-5 years 5-10 years 10-20 years Over 20 years 21,636 26,552 33,785 33,785 33,594 93,648 88,564 81,715 81,715 79,045 29,321 29,143 25,134 25,131 26,968 9,530 15,301 15,659 15,596 16,128 10,397 6,079 6,145 6,098 6,063 Total 31........................................................ 262,038 31........................................................ 269,509 31........................................................ 270,224 31........................................................ 270,131 28........................................................ 269,650 Total Bills Other 119,141 130,422 141,571 141,590 141,444 97,505 103,870 107,786 107,805 107,850 U.S. Govt, agencies and trust funds: 1971—Dec. 31................................................ 1972—Dec. 31................................................ 1973—Dec. 31................................................ 1974—Jan. 31................................................ Feb. 28................................................ 18,444 19,360 20,962 21,095 21,234 1,380 1,609 2,220 2,334 2,391 605 674 631 763 694 775 935 1,589 1,571 1,697 7,614 6,418 7,714 7,715 7,355 4,676 5,487 4-, 389 4,387 4,603 2,319 4,317 5,019 5,039 5,264 2,456 1,530 1,620 1,620 1,620 Federal Reserve Banks: 1971—Dec. 31................................................ 1972—Dec. 31........................................ 1973—Dec. 31................................................ 1974—Jan. 31................................................ Feb. 28................................................ 70,218 69,906 78,516 78,240 78,237 36,032 37,750 46,189 45,770 46,425 31,033 29,745 36.928 36,500 36,467 4,^99 8,005 9,261 9,270 9,958 25,299 24,497 23,062 23,128 22,236 7,702 6,109 7,504 7,580 7,780 584 1,414 1,577 1,577 1,612 601 136 184 184 184 Held by private investors: 1971—Dec. 31................................................ 1972—Dec. 31................................................ 1973—Dec. 31................................................ 1974—Jan. 31................................................ Feb. 28................................................ 173,376 180,243 170,746 170,796 170,179 81,729 91,063 93,162 93,486 92,628 65,867 73,451 70,227 70,542 70,689 15,862 17,612 22,935 22,944 21,939 60,735 57,649 50,939 50,872 49,454 16,943 17,547 13,241 13,164 14,585 6,627 9,570 9,063 8,980 9,252 7,340 4,413 4,341 4,294 4,259 Commercial banks: 1971—Dec. 31......................................... 1972—Dec. 31......................................... 1973—Dec. 31........................................ 1974—Jan. 31......................................... Feb. 28......................................... 51,363 52,440 45,737 45,848 45,369 14,920 18,077 17,499 17,657 16,441 8,287 10,289 7,901 8,260 7,336 6,633 7,788 9,598 9,397 9,105 28,823 27,765 22,878 22,960 22,450 6,847 5,654 4,022 4,036 5,142 555 864 1,065 921 1,070 217 80 272 274 265 Mutual savings banks: 1971—Dec. 31........................................ 1972—Dec. 31........................................ 1973—Dec. 31........................................ 1974—Jan. 31......................................... Feb. 28........................................ 2,742 2,609 1,955 1,911 1,834 416 590 562 535 493 235 309 222 229 221 181 281 340 306 272 1,221 1,152 750 754 704 499 469 211 212 228 281 274 300 292 291 326 124 131 118 117 Insurance companies: 1971—Dec. 31......................................... 1972—Dec. 31........................................ 1973—Dec. 31........................................ 1974—Jan. 31......................................... Feb. 28......................................... 5,679 5,220 4,956 4,931 4,858 720 799 779 762 710 325 448 312 314 298 395 351 467 448 412 1,499 1,190 1,073 1,085 1,068 993 976 1,278 1,282 1,269 1,366 1,593 1,301 1,297 1,276 1,102 661 523 504 510 Nonfinancial corporations: 1971—Dec. 31......................................... 1972—Dec. 31........................................ 1973—Dec 31........................................ 1974—Jan. 31......................................... Feb. 28........................................ 6,021 4,948 4,905 4,600 4,765 4,191 3,604 3,295 2,958 2,877 3,280 1,198 1,695 1,461 1,632 911 2,406 1,600 1,497 1,245 1,492 1,198 1,281 1,326 1,386 301 121 260 253 351 16 25 54 47 136 20 1 15 16 15 Savings and loan 1971—Dec. 1972—Dec. 1973—Dec. 1974—Jan. Feb. associations: 31........................................ 31......................................... 31........................................ 31......................................... 28........................................ 3,002 2,873 2,103 2,179 2,116 629 820 576 600 580 343 498 121 141 159 286 322 455 459 421 1,449 1,140 1,011 1,035 978 587 605 320 324 338 162 226 151 170 169 175 81 45 50 50 State and local governments: 1971—Dec. 31........................................ 1972—Dec. 31......................................... 1973—Dec. 31........................................ 1974—Jan. 31......................................... Feb. 28 ........................................ 9,823 10,904 9,829 10,322 10,834 4,592 6,159 5,845 6,096 7,035 3,832 5,203 4,483 4,685 5,604 760 956 1,362 1,411 1,431 2,268 2,033 1,870 2.036 1,834 783 816 778 850 805 918 1,298 1,003 1,002 836 1,263 598 332 337 325 94,746 101,249 101,261 101,005 100,403 56,261 61,014 64,606 64,878 64.492 49,565 55,506 55,493 55,452 55,439 6,696 5,508 9,113 9,426 9,053 23,983 23.171 22;076 21,676 21,034 6,933 8,906 6,372 6,207 6,425 3,329 5,290. 5,189 5,251 5,474 4,237 2,868 3,023 2,995 2,977 All others: 1971—Dec. 1972—Dec. 1973—Dec. 1974—Jan. Feb. 31........................................ 31........................................ 31........................................ 31......................................... 2 8........................................ N ote.—Direct public issues only. Based on Treasury Survey of Ownership. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, but data for other groups include only holdings of those institutions that report. The following figures show, for each category, the number and proportion reporting: (1) 5,601 commercial banks, 479 mutual savings banks, and 737 insurance companies combined, each about 90 per cent; (2) 463 nonfinancial corporations and 485 savings and loan assns., each about 50 per cent; and (3) 505 State and local govts., about 40 per cent, “All others,” a residual, includes holdings of all those not reporting in the Treasury Survey, including investor groups not listed separately, A 40 U.S. GOVERNMENT SECURITIES □ APRIL 1974 DAILY-AVERAGE DEALER TRANSACTIONS (Par value, in m illions o f dollars) U.S. Government securities By maturity Period Total Within 1 year 1-5 years 5-10 years By type of customer U.S. Govt, U.S. Govt, securities securities dealers brokers Over 10 years Com mercial banks All other1 U.S. Govt. agency securities 1973—Feb............................... Mar.............................. Apr............................... M ay............................. June............................. July............................... Aug.............................. Sept.............................. Oct................................ Nov.............................. Dec............................... 4,155 3,077 3,185 3,187 2,969 2,993 3,366 3,884 3,384 4,022 3,889 2,975 2,311 2,535 2,390 2,335 2,330 2,403 3,021 2,798 3,001 3,167 721 508 440 322 289 367 706 644 374 485 348 370 201 165 323 228 226 172 158 163 447 317 89 57 46 153 118 72 85 61 48 89 58 888 713 709 661 593 581 566 583 568 655 675 808 585 636 543 622 632 874 1,182 954 1,188 1,051 1,360 987 1,075 1,057 975 982 1,044 1,142 1,073 1,173 1,123 1,099 792 766 927 778 798 881 977 789 1,007 1,040 645 664 714 687 732 700 771 1,048 810 810 869 1974—Jan................................ Feb............................... 3,659 4,229 3,074 3,192 325 402 215 561 45 74 706 795 889 1,058 1,103 1,299 962 1,077 695 1,019 Week ending— 1974—Feb. 6....................... 13....................... 20....................... 27....................... 6,411 4,095 3,741 3,344 5,030 2,874 2,923 2,522 479 558 339 321 849 574 390 426 53 90 90 74 1,142 811 745 642 1,812 1,072 833 753 1,910 1,241 1,138 1,047 1,546 971 1,026 902 1,297 847 923 981 Mar. 6 ....................... 13....................... 20....................... 27....................... 3,125 3,673 3,520 3,908 2,339 2,813 2,741 2,978 358 437 363 444 354 349 367 426 74 73 49 60 667 713 735 748 755 1,004 822 884 894 1,080 969 1,238 810 876 995 1,038 811 671 542 1,011 1 Since Jan. 1972 has included transactions of dealers and brokers in securities other than U.S. Govt. Note.—The transactions data combine market purchases and sales of U„S. Govt, securities dealers reporting to the F.R. Bank of New York. They do not include allotments of, and exchanges for, new U.S. Govt, securities, redemptions of called or matured securities, or purchases or sales of securities under repurchase agreement, reverse repurchase (resale), or similar contracts. Averages of daily figures based on the number of trading days in the period. DAILY-AVERAGE DEALER POSITIONS DAILY-AVERAGE DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commerc ial banks All Within 1 maturi ties year 1-5 years 5-10 years Over 10 years U.S. Govt. agency securi ties 3,394 2,702 2,795 2,626 2,976 1,901 1,788 3,201 3,073 3,618 4,441 3,365 3,130 3,105 2,596 2,818 2,062 1,977 2,958 2,858 3,034 3,697 -9 -2 7 4 -159 -3 2 4 -165 -2 5 0 -9 4 316 93 95 223 -1 -143 -143 179 91 -4 3 -107 -111 56 350 396 39 -1 1 -9 175 232 131 12 38 67 139 124 202 180 274 356 744 511 273 799 904 1,185 1,400 1973--Feb............. 1974—Jan................. 3,653 Feb................. 4,081 3,210 2,707 51 537 262 647 130 190 1,324 1,434 1974- Period 1973—Feb................. Mar................ Apr................ May............... June............... July............... Aug................ Sept................ Oct................. Nov................ Dec................ Week ending— Period All sources July........... Oct............. Corpora tions 1 All other: New York City Else where 3,415 2,799 3,032 2,667 3,769 2,826 2,318 4,244 3,721 4,469 5,468 1,063 903 935 674 1,242 725 829 1,620 1,253 1,809 2,322 455 292 513 452 690 544 327 877 918 900 1,147 490 281 311 252 431 510 386 441 328 570 671 1,408 1,323 1,273 1,291 1,406 1,047 4,948 4,996 1,894 1,704 1,253 1,503 658 533 1,143 1,257 111 1,306 1,223 1,190 1,329 Week ending— 1974—Jan. 2 ........ 9 , , 16........ 23 , 30........ 3,778 3,702 3,659 3,801 3,519 3,080 3,214 3,259 3,323 3,147 220 61 47 80 -7 331 283 225 264 268 147 144 128 134 112 1,535 1,372 1,316 1,293 1,279 1974—Jan. 2 ... 9 ... 16. .. 2 3 ... 3 0 ... 5,214 4,940 5,063 5,072 4,778 2,035 1,999 2,092 1,903 1,616 1,168 1,160 1,285 1,311 1,309 606 625 624 768 666 1,404 1,155 1,062 1,090 1,187 Feb. 6. , . 13. . , . 20 27. . . 3,667 5,005 4,055 3,631 3,024 3,179 2,388 2,271 126 818 672 530 414 797 779 612 102 212 216 217 1,359 1,462 1,523 1,416 Feb. 6 ... 13. .. 20. .. 4,577 5,121 5,301 4,922 1 ,698 1 ,839 1,627 1,674 1,482 1,567 1,499 1,496 413 422 635 635 985 1,293 1,541 1,117 Note.—The figures include all securities sold by dealers under repur chase contracts regardless of the maturity date of the contract, unless the contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more clearly represent investments by the holders of the securities rather than dealer trading positions. Average of daily figures based on number of trading days in the period. 2 1 . .. i All business corporations, except commercial banks and insurance companies. N ote.—Averages of daily figures based on the number of calendar days in the period. Both bank and nonbank dealers are included. See also N ote to the table on the left. APRIL 1974 o U.S. GOVERNMENT SECURITIES A 41 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 1974 (In millions of dollars) Issue and coupon rate Issue and coupon rate Amount Treasury bills—Cont. Aug. 27, 1974... 4.302 Aug. 29, 1974... 1,802 Sept. 5 ,1 9 7 4 ... 4,308 Sept. 12, 1974. . . 4,304 Sept. 19, 1974. . . 4,525 4.307 Sept. 24, 1974... 4.308 Sept. 26, 1974. . . Oct. 22, 1974... 1,800 Nov. 19, 1974... 4,306 Dec- 17, 1974... 4.303 Jan. 14, 1975... 4.303 4.301 Feb. 11, 1975... 1,801 4.301 4.303 4,300 Treasury notes 4,522 Apr. 1, 1974........1% 4.303 May 15, 1974........ i y 4 1,802 Aug. 15, 1974........55/s 1.803 Sept. 30, 1974........ 6 1,810 Oct. 1, 1974........1% 1,811 Nov. 15, 1974........ Sy4 1,798 Dec. 31, 1974........ 5% 1.804 Feb. 15, 1975........5 y4 1,803 Feb. 15, 1975........5% 1,802 Apr. 1, 1975........ U/i May 15, 1975........5% 1,800 1,797 May 15, 1975........ 6 Treasury bills Apr. 4, 1974. Apr. 9, 1974. Apr. 11, 1974. Apr. 18, 1974. Apr. 19, 1974f Apr. 25, 1974. May 2, 1974. May 7, 1974. May 9, 1974. May 16, 1974. May 23, 1974. May 30, 1974. June 4,1974.. June 6 , 1974. June 13, 1974. June 20, 1974. June 21, 1974f June 27, 1974. July 2, 1974. July 5, 1974. July 11, 1974. July 18, 1974. July 25, 1974. July 30, 1974. Aug. 1, 1974. Aug. 8 , 1974. Aug. 15, 1974. Aug. 22, 1974. Issue and coupon rate Amount 1,805 1,801 1,805 1,802 1,801 1,802 1,801 1,802 1,801 1,803 1,802 1,802 34 4,334 10,284 2,060 42 5,442 2,102 4,015 1,222 8 1,776 6,760 t Tax-anticipation series. Treasury notes—Cont. Aug. 15, 1 9 7 5 .... .57/8 Sept. 30, 1 9 7 5 .... .8 3/g Oct. 1, 1 9 75.... • 1% Nov. 15, 19 7 5 .... .7 Dec. 31, 1975 . , . .7 Feb. 15, 1976.... . 6V4 Feb. 15, 1976 ... .57/8 Apr. 1, •1 % May 15, 1976.... .5*4 May 15, 1976.... .6% Aug. 15, 19 7 6 .... .7 % Aug. 15, 19 7 6 .... .6 % Oct. 1, 1 9 76.... . 1% Nov. 15, 1976 .. . .6 y4 Feb. 15, 1977.... .8 Apr. 1, 1977___ . 1% May 15, 1 9 77.... .67/ 8 Aug. 15, 1 977.... .73/4 Oct. 1, 1977,... .1 % Feb. 15, 1978.... .61/i Apr. 1, 1978, ,. . 1% Oct. 1, 1978,,,. A Y i Nov. 15, 1978..., .6 Aug. 15, 1 9 7 9 .... .614 Nov. 15, 19 7 9 .... .65/8 Nov. 15, 1979 ,, .7 May 15, 1980... . .67/8 Feb. 15, 1981 .7 Amount 7,679 2,042 30 3,115 1,731 3,739 4,945 27 2,802 2,697 4,194 3,883 11 Issue and coupon rate Amount Treasury bonds May 15, .414 Nov. 15, 19 7 4 .... •37/g May 15, 1975-85. .414 June 15, 1978-83. .314 Feb. 15, Nov. 15, 1 9 8 0 .... •3% Aug. 15, Feb. 15, 19 8 2 .... .63/8 .63/g Aug. 15, May 15, 1 9 8 5 .... .3% Nov. 15, 19 8 6 .... .61/8 Aug. 15, 1987-92. .41/4 Feb. 15, 1988-93. .4 May 15, 1989-94. .41/8 Feb. 15, 19 9 0 .... •3% Feb. 15, 1993___ .634 Aug. 15, 1993 •7% Feb. 15, May 15, 1993-98. .7 Nov. 15, 1 9 9 8 .... .3% 4,325 5,163 5 2,565 4,918 17 8,389 15 3 8,207 4,559 Convertible bonds 1,604 Investment Series B 2,241 Apr. 1, 1975-80. .234 7,265 1,842 2,847 1,213 1,201 1,477 2,573 1,896 807 2,702 2,353 943 1,216 3,678 227 1,456 3,932 627 1,914 827 692 3,066 2,272 N ote.—D irect public issues only. Based on Daily Statement of U. S Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) Issues for new capital All issues (new capital and refunding) Type of issuer Type of issue Period Total Gener al obli gations D K.0VC- HAAl fl ue 1964............... 1965............... 1966............... 1967............... 1968............... 1969............... 1970............... 1971............... 1972............... 1973............... 10,847 11,329 11,405 14,766 16,596 11,881 18,164 24,962 23,652 23,970 I973 r—Ja n ... Feb... Mar. . A pr... M ay.. June.. July.. Aug... S ept.. Oct... N o v .. Dec... 1,977 1,515 2,467 1,826 1,939 2,152 2,028 1,657 1,750 2,313 2,257 2,089 1,152 782 1,228 870 825 1,025 1,458 1,067 721 1,344 919 822 731 930 947 1,106 861 564 588 741 964 1,383 919 1974—Jan ... . Feb.... 2,183 1,862 1,391 1,135 790 727 6,417 3,585 7,177 3,517 6,804 3,955 8,985 5,013 9,269 6,517 7,725 3,556 11,850 6,082 15,220 8,681 13,305 9,332 12,257 10,632 866 637 464 325 477 528 402 131 U.S. Govt. loans State 1,022 208 170 312 334 282 197 103 62 57 58 1,628 2,401 2,590 2,842 2,774 3,359 4,174 5,999 4,991 4,212 3 303 1 6 1 602 47 613 159 291 189 516 529 236 337 243 450 2 1 208 472 1,000 959 261 285 173 9 8 5 6 2 2 6 9 Special district and Other 2 stat. auth. Use of proceeds Total Edu Roads and cation bridges 3,812 5,407 10,069 10,201 3,784 5,144 11,538 10,471 11,303 4,110 4,695 14,643 4,810 7,115 16,489 5,946 7,884 11,838 3,596 4,926 18,110 5,595 8,399 8,714 10,246 24,495 9,496 9,165 22,073 22,408 9,507 10,249 3,392 3,619 3,738 4,473 4,820 3,252 5,062 5,278 4,981 4,311 1,809 1,411 1,022 921 903 936 934 703 881 1,149 630 675 1,135 766 616 1,602 1,653 2,163 1,929 1,954 369 365 374 306 299 542 391 311 327 299 356 372 823 508 1,152 883 2,117 1,812 594 438 454 565 918 731 945 1,082 363 498 828 842 1,247 1 Only bonds sold pursuant to 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 2 Municipalities, counties, townships, school districts. 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser and payment to issuer, which occurs after date of sale. Total amount deliv ered 3 2,210 1,757 1,775 2,144 2,001 Util ities4 Other Hous Veter ans* pur ing 5 aid poses 727 626 533 645 787 543 466 2,068 1,910 2,639 120 2,838 688 2,437 1,965 1,880 2,404 2,833 1,734 3,525 5,214 4,638 5,654 215 67 153 142 42 165 420 416 501 452 430 643 366 352 579 412 596 487 224 334 3 290 384 251 247 344 551 833 898 588 523 1,009 618 298 1,060 687 582 35 53 374 580 56 34 1,059 707 900 1,476 1,254 1,526 1,432 1,532 2,642 1,689 1,458 12 233 102 231 30 66 117 10 347 88 50 3 311 3,667 5,867 6,523 4,884 7,526 9,293 6,741 8,335 688 4 Water., sewer, and other utilities. 5 Includes urban redevelopment loans. N ote.—Security Industries Assn. data; par amounts of long-term issues based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. A 42 SECURITY ISSUES □ APRIL 1974 TOTAL NEW ISSUES (In millions o f dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Total U.S. Govt.2 U.S. Govt. agency3 State and local (U.S.)4 Bonds Other5 Total Total Stock Publicly offered Privately placed Preferred Common 1964.................... 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965.................... 1966.................... 1967.................... 1968.................... 1969.................... 40,108 45,015 68,514 65,562 52,496 9,348 8,231 19,431 18,025 4,765 2,731 6,806 8,180 7,666 8,617 11,148 11,089 14,288 16,374 11,460 889 815 1,817 1,531 961 15,992 18,074 24,798 21,966 26,744 13,720 15,561 21,954 17,383 18,347 5,570 8,018 14,990 10,732 12,734 8,150 7,542 6,964 6,651 5,613 725 574 885 637 682 1,547 1,939 1,959 3,946 7,714 1970..................... 1971..................... 1972..................... 88,666 105,233 96,522 14,831 17,325 17,080 16,181 16,283 12,825 17,762 24,370 23,070 949 2,165 1,589 38,945 45,090 41,957 30,315 32,123 28,896 25,384 24,775 19,434 4,931 7,354 9,462 1,390 3,670 3,367 7,240 9,291 9,694 1972—Dec........... 8,210 2,553 200 1,760 302 3,396 2,625 1,024 1,601 272 498 1973—Jan............ Feb........... Mar.......... 6,523 7,325 9,029 6,567 11,225 7,943 7,643 8,019 8.091 8,924 12,553 6,635 1,199 1,603 606 564 3,353 559 490 3,097 2,432 485 4,521 148 993 2,261 1,826 1,640 3,442 1,706 2,471 1,600 2,100 2,612 2,200 1,032 1,889 1,445 2,304 1,688 1,870 2,046 1,992 1,414 1,630 2,232 2,224 1,966 116 53 359 178 17. 53 48 22 15 196 45 251 2,327 1,962 3,933 2,497 2,543 3,578 2,631 1,806 1,915 3,398 3,563 3,238 1,276 957 2,116 1,739 1,721 2,757 1,870 1,382 1,366 2,358 2,257 2,469 989 641 1,315 938 1,049 1,358 857 792 684 1,805 1,669 1,552 287 316 802 801 672 1,398 1,013 590 682 553 589 917 137 172 833 200 187 216 226 94 119 355 637 196 913 832 984 558 635 606 536 330 430 685 668 573 June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... Gross proceeds, major groups of corporate issuers Manufacturing Commercial and miscellaneous Transportation Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 196 4 196 5 196 6 2,819 4,712 5,861 228 704 1,208 902 1,153 1,166 220 251 257 944 953 1,856 38 60 116 2,139 2,332 3,117 620 604 549 669 808 1,814 1,520 139 189 3,391 3,762 1,747 466 514 193 196 196 196 197 197 197 9,894 5,668 4,448 9,192 9,426 4,821 1,164 1,311 1,904 1,320 2,152 1,809 1,950 1,759 1,888 1,963 2,272 2,645 117 116 3,022 2,540 2,390 2,882 1,859 1,665 1,899 2,213 1,998 2,862 466 1,579 247 47 420 185 4,217 4,407 5,409 8,016 7,605 6,392 718 873 1,326 3,001 4,195 4,965 1,786 1,724 1,963 5,053 4,227 3,692 193 43 225 83 1,592 1,125 2,247 2,159 2,739 3,878 6,601 8,485 186 662 1,671 1,638 2,212 2,095 1972—Dec. 486 103 343 149 214 25 491 370 34 17 1,057 107 1973—Jan.. Feb.. Mar. Apr. May June July. Aug. Sept. Oct.. Nov. Dec. 113 178 772 772 387 703 364 230 270 472 383 485 63 35 125 22 12 25 169 49 78 52 93 18 89 118 177 237 30 133 139 149 149 63 61 145 105 111 327 139 143 89 112 129 96 147 92 285 120 96 317 91 236 183 250 83 140 114 241 226 1 4 6 1 8 529 319 1,076 150 361 1,099 651 419 334 342 584 569 371 277 1,351 369 410 497 269 90 252 608 496 319 30 58 548 258 355 303 244 320 228 633 296 350 3 117 668 395 290 1,462 743 351 337 223 182 244 734 692 693 509 461 1,397 228 231 181 151 136 106 193 122 115 Period 7 8 9 0 1 2 1 Gross proceeds are derived by multiplying principal amounts or number of units by offering price. 2 Includes guaranteed issues. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. i 15 2 4 6 Public utility Communication 19 29 60 5 16 46 499 27 Real estate and financial 5 Foreign governments and their instrumentalities, International Bank for Reconstruction and Development, and domestic nonprofit organ izations. N ote.—Securities and Exchange Commission estimates of new issues maturing in more than 1 year sold for cash in the United States. APRIL 1974 □ SECURITY ISSUES A 43 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions o f dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1969....................... 1970....................... 1971....................... 1972....................... 1973*..................... 28,841 38,707 46,687 42,306 35,058 10,813 9,079 9,507 10,224 11,804 18,027 29,628 37,180 32,082 23,252 19,523 29,495 31,917 27,065 21,501 5., 767 6,667 8,190 8,003 8,810 13,755 22,825 23,728 19,062 12,691 9,318 9,213 14,769 15,242 13,554 5,045 2,411 1,318 2,222 2,993 4,272 6,801 13,452 13,018 10,561 1972—IV............... 10,944 2,932 8,012 6,998 2,207 4,790 3,946 725 3,220 1973—1................. I I ................ I l l .............. IV............... 8,219 9,418 6,638 10,783 2,806 2,470 2,150 4,378 5,412 6,947 4,488 6,405 4,198 5,769 4,521 7,013 1,781 1,664 1,579 3,786 2,417 4,106 2,941 3,227 4,020 3,648 2,118 3,768 1,025 806 571 591 2,995 2,842 1,547 3,177 Type of issues Commercial and other 2 Manu facturing Period Transpor tation 3 Communi cation Public utility Real estate and financial 1 Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks Bonds & notes Stocks 6,641 6,585 1,995 801 870 2,534 2,094 658 853 827 1,409 -109 1,778 2,290 2,471 1,411 1,104 900 711 1,044 36 800 254 -9 3 6,861 6,486 5,137 4,265 2,917 4,206 4,844 4,509 4,806 3,925 3,343 3,165 94 1,600 1,260 1,389 2,564 5,005 7,045 3,522 1,107 2,017 2,096 3,141 1972—IV............... 116 290 575 479 179 47 1,056 1,735 944 89 1,920 580 1973—1.................. I I ................ I l l .............. IV............... 135 632 165 -131 63 -2 450 147 -174 119 108 -1 6 2 377 327 247 460 127 327 414 176 -4 3 7 -4 4 -1 3 844 1,136 1,217 1,068 1,170 1,276 557 1,506 520 842 752 1,051 185 562 77 575 965 1,049 284 1,224 1,244 673 260 964 1970....................... 1971....................... 1972....................... 1973....................... 1 Excludes investment companies. 2 Extractive and commercial and miscellaneous companies. 3 Railroad and other transportation companies. Note.—Securities and Exchange Commission estimates of cash transactions only. As contrasted with data shown on opposite page, new issues exclude foreign sales and include sales of securities held by affiliated companies, special offerings to employees, and also new stock issues and cash proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with internal funds or with proceeds of issues for that purpose, OPEN-END INVESTMENT COMPANIES (In millions of dollars) Year Sales and redemption of own shares Sales 1 Redemp tions Assets (market value at end of period) Net sales Total 2 Cash Other position 3 1962.............. 1963.............. 1964.............. 2,699 2,460 3,404 1,123 1,504 1,875 1,576 952 1,528 21,271 25,214 29,116 1,315 1,341 1,329 1965.............. 1966.............. 1967.............. 4,359 4,671 4,670 1,962 2,005 2,745 2,395 2,665 1,927 35,220 34,829 44,701 1.803 2,971 2,566 1968.............. 1969.............. 1970.............. 6,820 6,717 4,624 3,841 3,661 2,987 2,979 3,056 1,637 52,677 48,291 47,618 1971.............. 1972.............. 1973.............. 5,145 4,892 4,358 4,751 6,563 5,651 774 -1,671 1,261 56,694 59,831 46,518 Sales and redemption of own shares Sales 1 Redemp tions Assets (market value at end of period) Net sales Total 2 Cash position 3 Other 3,187 3,846 3,649 19,956 1973—Feb... 23,873 Mar... A p r... 27,787 M ay .. 33,417 Ju n e .. 31,858 July. . Aug. . 42,135 Sept... Oct.. . 49,490 44,445 N ov... Dec... 43,969 327 519 300 285 303 364 239 330 305 502 349 530 531 452 446 349 357 432 395 559 542 392 -203 -1 2 -1 2 0 -161 -4 6 -7 -193 -6 5 -2 5 4 -4 0 -4 3 54,083 53,377 50,837 48,588 48,127 50,933 49,553 52,322 51,952 45,814 46,518 3,375 3,774 3,837 4,154 4,164 4,594 4,567 4,641 4,168 4,126 4,002 50,708 49,603 46,464 44,434 43,963 46,339 44,986 47,681 47,784 41,688 42,516 3,163 3,035 4,002 53,531 1974—Jan.. . Feb... 56,796 42,516 334 215 325 303 9 -8 8 47,094 45,958 4,226 4,447 42,863 41,511 1 Includes contractual and regular single-purchase sales, voluntary and contractual accumulation plan sales, and reinvestment of investment income dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Month 3 Cash and deposits, receivables, all U.S. Govt, securities, and other short-term debt securities, less current liabilities. N ote.—Investment Company Institute data based on reports of mem bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. A 44 BUSINESS FINANCE □ APRIL 1974 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate capital Undis consump tributed tion profits allow ances 1 Profits before taxes In come taxes Profits after taxes Cash divi dends 1966. 1967. 84.2 79.8 34.3 33.2 49.9 46.6 20.8 21.4 29.1 25.3 39.5 43.0 1968. 1969. 1970. 1971. 1972. 1973* 87.6 84.9 74.0 85.1 98.0 126.4 39.9 40.1 34.8 37.4 42.7 55.9 47.8 44.8 39.3 47.6 55.4 70.5 23.6 24.3 24.7 25.1 26.0 27.8 24.2 20.5 14.6 22.5 29.3 42.7 46.8 51.9 56.0 60.4 65.9 71.3 Year Corporate capital Undis consump tributed tion profits allow ances 1 Quarter Profits before taxes In come taxes Profits after taxes Cash divi dends 1972—1........ I I ....... I I I .... I V .... 92.8 94.8 98.4 106.1 40.6 41.4 42.9 45.9 52.2 53.4 55.6 60.3 25.7 25.9 26.2 26.4 26.5 27.5 29.4 33.9 63.4 66.2 66.0 68.0 1973—1........ I I ....... I I I .... IV *... 119.6 128.9 129.0 128.1 52.7 57.4 57.6 56.0 66.9 71.6 71.5 72.0 26.9 27.3 28.1 29.0 40.0 44.2 43.4 43.0 69.3 70.5 71.7 73.7 1 Includes depreciation, capital outlays charged to current accounts, and accidental damages. N ote.—Dept, of Commerce estimates. Quarterly data are at seasonally adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF NONFINANCIAL CORPORATIONS (In billions of dollars) Current assets Net working capital End of period 1968.............................. 1969.............................. 182.3 185.7 1970—IV ...................... Total Cash U.S. Govt. securi ties Current liabilities Notes and accts. receivable U.S. Govt.1 Other Notes and accts. payable Inven tories 426.5 473.6 48.2 47.9 11.5 10.6 5.1 4.8 168.8 192.2 166.0 186.4 Other U.S. Govt.1 Other Accrued Federal income taxes Total 26.9 31.6 244.2 287.9 6.4 7.3 162.4 196.9 14.3 12.6 Other 61.0 76.0 187.8 490.4 49.7 7.6 4.2 200.6 196.0 32.4 302.6 6.6 200.5 11.8 83.7 1971—1......................... 192.0 II....................... 196.5 I l l ..................... 200.9 IV ..................... 204.9 494.1 498.2 507.2 516.7 48.5 51.1 52.4 55.3 7.8 7.7 7.8 10.4 4.2 3.9 3.9 3.5 201.3 203.3 206.5 207.5 198.5 199.2 201.6 203.1 33.8 33.1 34.9 36.8 302.1 301.7 306.3 311.8 6.1 5.3 5.0 4.9 195.7 195.8 197.4 202.8 13.7 12.4 13.8 14.5 86.6 88.3 90.1 89.7 1972—1......................... 209.6 II....................... 215.2 I l l ..................... 219.3 IV ..................... 224.3 526.0 534.3 545.5 561.1 55.3 55.7 57.3 60.3 9.9 8.7 7.6 9.7 3.4 2.8 2.9 3.4 211.4 216.3 222.5 228.9 207.2 210.7 215.2 218.2 38.9 40.1 39.8 40.7 316.4 319.1 326.2 336.8 4.9 4.9 4.7 4.0 202.5 204.0 207.6 216.9 15.7 13.4 15.0 16.7 93.3 96.8 98.9 99.2 1973—1......................... 231.4 II....................... 237.8 I l l ..................... 241.8 577.1 594.7 611.4 61.0 62.2 62.0 10.4 9.4 9.2 3.2 2.9 3.0 234.0 243.7 252.2 225.9 233.5 241.5 42.5 43.0 43.5 345.7 356.9 369.6 4.1 4.5 4.4 218.1 227.6 235.7 18.6 16.5 18.1 104.9 108.3 111.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts offset against each other on corporations’ books. N ote : Based on Securities and Exchange Commission estimates. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Period Total Durable Non durable Public utilities Transportation Mining Rail road Air Other 8.30 10.10 10.77 11.89 12.85 16.05 16.59 18.05 20.07 21.40 .37 3.60 .69 2.84 5.26 83.18 .32 .39 .35 .40 3.19 3.61 3.67 4.01 .44 .62 .72 .73 2.72 2.95 2.84 3.39 4.55 4.98 4.97 5.57 86.79 87.12 87.67 91.94 .52 .72 .57 .60 .32 .43 .44 .47 3.45 3.91 4.04 4.54 .50 .68 .77 .82 2.87 3.27 3.19 3.53 4.94 5.40 5.24 5.83 96.19 97.76 100.90 103.74 .48 .65 .39 .41 3.99 4.48 .53 .91 15.96 15.80 14.15 15.64 19.25 15.72 16.15 15.84 15.72 18.76 1.86 1.89 2.16 2.45 2.74 1.86 1.78 1.67 1.80 1.96 2.51 3.03 1.88 2.46 2.41 1.68 1.23 1.38 1.46 1.66 1971—IV................ 22.79 4.12 4.32 .59 .45 .56 1972—1.................. I I ............... I l l ............... IV............... 19.38 22.01 21.86 25.20 3.29 3.71 3.86 4.77 3.32 3.92 3.87 4.61 .58 .61 .59 .63 .48 .48 .38 .47 .50 .73 .61 .63 1973—1.................. II................. I l l ............... IV............... 21.50 24.73 25.04 28.48 3.92 4.65 4.84 5.84 3.88 4.51 4.78 5.59 .63 .71 .69 .71 .46 .46 .48 .56 1974—12................ 112............... 23.92 27.83 4.85 5.54 4.54 5.60 .75 .80 .50 .60 Total (S.A. A.R.) 2.67 2.49 2.44 2.52 2.76 75.56 79.71 81.21 88.44 99.74 1 Includes trade, service, construction, finance, and insurance. Other1 8.94 10.65 12.86 14.48 15.91 1969....................... 1970....................... 1971....................... 1972....................... 1973....................... 2 Anticipated by business. Commu nications Electric andGas other 7.!?0 8.83 107.18 109.96 Note.—Dept, of Commerce and Securities and Exchange Commission estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. APRIL 1974 □ REAL ESTATE CREDIT A 45 MORTGAGE DEBT OUTSTANDING (In billions o f dollars) End of period All properties Farm Nonfarm Other holders2 Finan All cial hold Indi insti U.S. ers tutions1 agen viduals and cies others Finan Other All cial hold insti hold ers tutions 1 ers3 1- to 4-family houses4 All hold ers Total Finan. Other insti hold tutions 1 ers Multifamily and commercial properties5 Total Mortgage type6 Finan. Other FHAVAhold underinsti tutions 1 ers written Con ven tional 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 11.2 204.0 196 5 196 6 196 7 196 8 196............9 325.8 347.4 370.2 397.5 425.3 264.6 280.8 298.8 319.9 339.1 12.4 15.8 18.4 21.7 26.8 48.7 50.9 53.0 55.8 59.4 21.2 23.3 25.5 27.5 29.5 7.8 8.4 9.1 9.7 9.9 13.4 14.9 16.3 17.8 19.6 304.6 324.1 344.8 370.0 395.9 212.9 223.6 236.1 251.2 266.8 184.3 192.1 201.8 213.1 223.7 28.7 31.5 34.2 38.1 43.2 91.6 100.5 108.7 118.7 129.0 72.5 80.2 87.9 97.1 105.5 19.1 20.3 20.9 21.6 23.5 81.2 84.1 88.2 93.4 100.2 223.4 240.0 256.6 276.6 295.7 197 0 197 1 197 2 451.7 499.9 565.4 355.9 394.4 450.6 33.0 39.4 45.8 62.8 66.2 69.0 31.2 32.9 35.4 10.1 9.9 10.5 21.1 23.0 24.9 420.5 467.0 530.0 280.2 307.8 346.1 231.3 254.2 288.7 48.9 53.7 57.4 140.3 159.2 183.9 114.5 130.3 151.3 25.8 28.9 32.6 109.2 120.7 131.1 311.3 346.3 398.9 485.6 1971—III. IV. . 499.9 383.5 394.4 37.4 39.4 64.6 66.2 32.4 32.9 9.8 9.9 22.6 23.0 453.2 467.0 299.7 307.8 248.0 254.2 51.7 53.7 153.5 159.2 125.8 130.3 27.7 28.9 117.5 120.7 335.7 346.3 1972—1 ..., II. . III. IV. . 511.7 529.1 547.3 565.4 404.2 418.9 434.6 450.6 41.2 42.7 44.3 45.8 66.4 67.5 68.3 69.0 33.5 34.4 35.0 35.4 9.9 10.2 10.3 10.5 23.6 24.2 24.7 24.9 478.2 494.8 512.3 530.0 314.1 324.6 335.8 346.1 259.6 268.8 279.2 288.7 54.5 55.8 56.6 57.4 164.1 170.2 176.5 183.9 134.6 140.0 145.1 151.3 29.4 30.3 31.3 32.6 123.7 126.6 129.0 131.1 354.5 368.2 383.3 398.9 1973—1 ... II. . 580.1 600.4 619.9 463.3 480.5 494.9 47.3 49.0 53.0 69.5 71.0 71.9 36.5 37.7 38.7 10.7 11.0 11.4 25.8 26.7 27.3 543.6 562.7 581.2 353.9 365.7 376.6 296.3 306.9 315.0 57.6 58.8 61.6 189.7 197.0 204.5 156.4 162.5 168.5 33.4 34.5 36.0 132.5 133.6 411.1 429.1 1 Commercial banks (including nondeposit trust companies but not trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. 2 U.S. agencies include former Federal National Mortgage Assoc, and, beginning fourth quarter 1968, new Government National Mortgage Assoc, as well as Federal Housing Admin., Veterans Admin., Public Hous ing Admin., Farmers Home Admin. They also include U.S. sponsored agencies—new FNMA, Federal land banks, GNMA (Pools), and the Federal Home Loan Mortgage Corp. Other U.S. agencies (amounts small or separate data not readily available) included with “individuals and others.” 3 Derived figures; includes debt held by Federal land banks and farm debt held by Farmers Home Admin. 4 For multifamily and total residential properties, see tables below. 5 Derived figures; includes small amounts of farm loans held by savings and loan assns. 6 Data by type of mortgage on nonfarm 1- to 4-family properties alone are shown in table below. N ote.—Based on data from Federal Deposit Insurance Corp., Federal Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul ture and Commerce, FNMA, FHA, PHA, VA, GNMA, FHLMC, and Comptroller of the Currency. Figures for first three quarters of each year are F.R. estimates. MORTGAGE DEBT OUTSTANDING ON RESIDENTIAL PROPERTIES MORTGAGE DEBT OUTSTANDING ON NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) End of period 1964............... Governmentunderwritten All residential Multifamily1 Total Finan cial insti tutions Other holders Total Finan cial insti tutions Other holders 231.1 195.4 35.7 33.6 25.1 8.5 End of period Total Total FHAin sured VAguaranteed1 Con ven tional 196 4 197.6 69.2 38.3 30.9 128.3 5 6 7 8 9 212.9 223.6 236.1 251.2 266.8 73.1 76.1 79.9 84.4 90.2 42.0 44.8 47.4 50.6 54.5 31.1 31.3 32.5 33.8 35.7 139.8 147.6 156.1 166.8 176.6 250.1 264.0 280.0 298.6 319.0 213.2 223.7 236.6 250.8 265.0 36.9 40.3 43.4 47.8 54.0 37.2 40.3 43.9 47.3 52.2 29.0 31.5 34.7 37.7 41.3 8.2 8.8 9.2 9.7 10.8 196 196 196 196 196 1970............... 338.2 1971................ 374.7 1972................ 422.5 277.1 306.1 347.9 61.1 68.5 74.6 58.0 66.8 76.4 45.8 52.0 59.1 12.2 14.9 17.3 197 0 197 1 197 2 280.2 307.8 346.1 97.3 105.2 113.0 59.9 65.7 68.2 37.3 39.5 44.7 182.9 202.6 233.1 364.0 374.7 298.4 306.1 65.6 68.5 64.3 66.8 50.4 52.0 13.9 14.9 1971—III. IV. 299.7 307.8 102.9 105.2 64.4 65.7 38.5 39.5 196.8 202.6 1972—1.......... 382.9 II ......... 395.8 Ill ... . 409.3 IV....... 422.5 312.9 324.1 336.1 347.9 70.0 71.7 73.2 74.6 68.8 71.3 73.5 76.4 53.3 55.3 56.9 59.1 15.4 16.0 16.6 17.3 1972—1 ... II. . III. IV. 314.1 324.6 335.8 346.1 107.5 109.6 111.5 113.0 66.8 67.6 68.4 68.2 40.7 42.0 43.1 44.7 206.6 215.0 224.3 233.1 1973—1.......... 432.8 I I ........ 447.9 III p . . . 461.6 357.4 370.4 380.0 75.5 77.5 81.6 79.0 82.2 85.0 61.1 63.5 65.0 17.9 18.7 20.0 1973—1 ... I I .. Ill* 353.9 365.7 376.6 113.7 114.7 67.9 67.5 45.8 47.2 204.2 251.0 1965............... 1966............... 1967............... 1968............... 1969............... 1971—III----IV....... i Structures of five or more units. N ote.—Based on data from same source as for “ Mortgage Debt Out standing” table above. 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. N ote.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. A 46 REAL ESTATE CREDIT □ APRIL 1974 MORTGAGE LOANS HELD BY BANKS (In millions o f dollars) Commercial bank holdings i End of period Residential Total Total FHAin sured VAguar anteed Mutual savings bank holdings Residential Other non farm Con ven tional Total Farm Other non farm Total FHAin sured VAguaranteed Con ven tional 13,791 14,500 15,074 15,569 15,862 11,408 11,471 11,795 12,033 12,166 14,897 16,272 17,772 19,146 20,654 Farm 5 6 7 8 9 49,675 54,380 59,019 65,696 70,705 32,387 34,876 37,642 41,433 44,573 7,702 7,544 7,709 7,926 7,960 2 ,( 2,599 2,696 2,708 2,663 21,997 24,733 27,237 30,800 33,950 14,377 16,366 17,931 20,505 22,113 2,911 3,138 3,446 3,758 4,019 44,617 47,337 50,490 53,456 56,138 40,096 42,242 44,641 46,748 48,682 4,469 5,041 5,732 6,592 7,342 52 53 117 117 114 197 0 197 1 197 2 73,275 82,515 99.314 45,640 52,004 62.782 7,919 8,310 8.495 2,589 3,980 3.203 35,131 23,284 40,714 26,306 51.084 31,751 4,351 4,205 4,781 57,948 61,978 67,556 49,937 16,087 12,008 21,842 7,893 53,027 16,141 12,074 24,812 8,901 57,140 16,013 12,622 28,505 10,354 119 50 62 1972—1.. II. Ill IV. 85,614 90,114 95,048 99.314 53,937 56.782 59,976 62.782 8,360 8,477 8,515 8.495 2,999 3,141 3,118 3.203 42,578 45,163 48,343 51.084 27,353 28,785 30,415 31,751 4,324 4,547 4,657 4,781 62,978 64,404 65,901 67,556 53,733 54,758 55,889 57,140 1973—1.. II. Ill 103,548 109,114 114,414 65,236 68,650 71,852 8,482 3,211 33,342 56/957 35,224 37,070 4,970 5,240 5,492 68,920 70,634 72,034 58,169 59,397 60,305 196 196 196 196 196 16,184 16,256 16,130 16,013 12,144 12,325 12,463 12,622 25,405 9,195 26,178 9,586 27,296 9,951 28,505 10,354 50 60 61 62 10,683 11,178 11,670 68 59 59 N ote.—Second and fourth quarters, FDIC series for all commercial 1 Includes loans held by nondeposit trust companies but not bank and mutual savings banks in the United States and possessions. First and trust depts. third quarters, estimates based on special F.R. interpolations. MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Period Total Total Loans acquired Loans outstanding (end of period) Non farm Nonfarm Farm FHAinsured VAguaranteed Other i Total Total FHAinsured Farm VAguar anteed Other 1945.............................................. 976 6,637 5,860 1,394 4,466 766 1964.............................................. 1965.............................................. 1966.............................................. 1967.............................................. 1968.............................................. 1969.............................................. 10,433 11,137 10,217 8,470 7,925 7,531 9,386 9,988 9,223 7,633 7,153 6,991 1,812 1,738 1,300 757 733 594 674 553 467 444 346 220 6,900 7,697 7,456 6,432 6,074 6,177 1,047 1,149 994 837 772 540 55,152 60,013 64,609 67,516 69,973 72,027 50,848 55,190 59,369 61,947 64,172 66,254 11,484 12,068 12,351 12,161 11,961 11,715 6,403 6,286 6,201 6,122 5,954 5,701 32,961 36,836 40,817 43,664 46,257 48,838 4,304 4,823 5,240 5,569 5,801 5,773 1970.............................................. 1971.............................................. 1972.............................................. 1973........... •................................. 7,181 7,573 8,696 11,122 6,867 7,070 7,996 10,109 386 322 331 280 88 101 182 240 6,393 6,647 7,483 9,589 314 503 700 1,013 74,375 75,496 76,948 81,180 68,726 69,895 71,270 75,193 11,419 10,767 9,962 9,212 5,394 5,004 4,660 4,396 51,913 54,124 56,648 61,585 5,649 5,601 5,678 5,987 1973—Jan.r.................................. Feb.................................... Mar.................................... Apr.................................... M ay................................... June................................... July.................................... Aug.................................... Sept.................................... Oct..................................... Nov.................................... Dec.................................... 603 670 702 774 1,101 933 1,034 944 972 1,146 1,532 725 662 542 573 624 694 1,009 849 947 862 899 1,051 1,410 17 27 37 20 22 24 26 11 23 13 25 36 21 24 24 22 21 27 19 20 17 18 15 13 624 491 512 582 651 958 804 916 822 868 1,011 1,361 63 61 97 78 80 92 84 87 82 73 95 122 77,105 77,510 77,587 77,258 77,400 77,914 78,243 78,657 79,040 79,516 80,191 81,180 71,473 71,892 71,953 71,611 71,721 72,187 72,474 72,839 73,182 73,619 74,261 75,193 9,930 9,806 9,735 9,708 9,627 9,544 9,464 9,388 9,330 9,270 9,233 9,212 4,641 4,613 4,594 4,572 4,549 4,524 4,496 4,471 4,447 4,428 4,414 4,396 56,902 57,473 57,624 57,331 57,545 58,119 58,514 58,980 59,405 59,921 60,614 61,585 5,632 5,618 5,634 5,647 5,679 5,727 5,769 5,818 5,858 5,897 5,930 5,987 1974—Jan..................................... 932 845 8 14 823 87 81,490 75,534 9,150 4,380 62,004 5,956 1 Includes mortgage loans secured by land on which oil drilling or extracting operations are in process. APRIL 1974 □ REAL ESTATE CREDIT A 47 COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES Number of loans Period Total amount committed (millions of (dollars) Averages Loan amount (thousands of dollars) Contract interest rate (per cent) Maturity (yrs./mos.) Loanto-value ratio (per cent) Capitaliza tion rate (per cent) Debt coverage ratio Per cent constant 1968........................... 1969........................... 1970........................... 1971........................... 1972........................... 2,569 1,788 912 1,664 2,132 3,244.3 2,920.7 2,341.1 3,982.5 4,986.5 1,263 1,633 2,567 2,393 2,339 7.66 8.69 9.93 9.07 8.57 22/11 21/8 22/8 22/10 23/3 73.6 73.3 74.7 74.9 75.2 9.0 9.6 10.8 10.0 9.6 1.30 1.29 1.32 1.29 1.29 9.5 10.2 11.1 10.4 9.8 1971—Nov................ Dec................. 136 133 288.2 290.0 2,119 2,181 9.01 8.96 23/5 23 75.6 74.4 9.9 9.9 1.27 1.30 10.2 10.2 1972—Jan................. Feb................. Mar................ Apr................. May............... June............... July................ Aug................ Sept................ Oct................. Nov................ Dec................. 107 122 220 200 246 268 170 178 152 159 180 130 198.6 423.5 530.4 381.1 399.6 683.2 421.2 515.7 354.1 343.5 371.7 363.9 1,856 3,471 2,411 1,906 1,624 2,549 2,478 2,897 2,329 2,161 2,065 2,799 8.78 8.62 8.50 8.44 8.48 8.55 8.56 8.54 8.58 8.65 8.63 8.64 22/1 22/6 24/2 24/6 23/4 23/0 23/0 23/0 23/4 23/0 23/2 22/8 73.3 73.3 76.3 76.3 76.0 75.4 74.5 74.9 75.7 75.8 74.7 74.4 10.0 9.7 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.6 9.6 9.8 1.31 1.31 1.29 1.29 1.26 1.29 1.31 1.27 1.28 1.29 1.28 1.37 10.2 10.0 9.7 9.6 9.8 9.8 9.8 9.9 9.8 9.9 9.9 9.9 N ote.—American Life Insurance Association data for new commit ments of $100,000 and over each on mortgages for multifamily and non residential nonfarm properties located largely in the United States. The 15 companies account for a little more than one-half of both the total assets and the nonfarm mortgages held by all U.S. life insurance companies. Averages, which are based on number of loans, vary in part with loan composition by type and location of property, type and purpose of loan, and loan amortization and prepayment terms. Data for the following are limited to cases where information was available or estimates could be made: capitalization rate (net stabilized property earnings divided by property value); debt coverage ratio (net stabilized earnings divided by debt service); and per cent constant (annual level payment, including principal and interest, per $100 of debt). All statistics exclude construction loans, increases in existing loans in a company’s portfolio, reapprovals, and loans secured by land only. MORTGAGE ACTIVITY OF SAVINGS AND LOAN ASSOCIATIONS FEDERAL HOME LOAN BANKS (In millions of dollars) (In millions of dollars) Loans made Loans outstanding (end of period) Period Period 1965.............. 1966.............. 1967.............. 1968.............. 1969.............. Total i 24,192 16,924 20,122 21,983 21,847 1970.............. 21,383 1971'............ 39,419 1972'............ 51,369 1973. . . . 49,464 New home Home con pur struc chase tion Total 2 FHA- VACon in guar ven sured 3 anteed 3 tional 6,013 10,830 110,306 5,145 3,653 7,828 114,427 5,269 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 6,824 8,548 8,423 10,237 18,779 26,594 28,248 6,398 6,157 6,351 7,012 7,658 98,763 103,001 109,663 117,132 124,772 150,331 10,178 8,494 131,659 174,250 13,675 10,623 149,952 206,182 15,400 13,474 177,308 232,104 29,713 202,391 1973—Jan.r. . Feb. . M ar.r . A pr.r.. May r.. Juner . July r. . Aug.r . Sept.r. O ct.r.. Nov . r. Dec.r . 3,698 3,706 4,985 4,984 5,471 5,732 5,054 4,966 3,174 2,786 2,379 2,529 589 614 886 885 930 902 850 800 571 532 448 425 1,968 2,017 2,683 2,760 3,137 3,465 3,076 3,056 1,836 1,547 1,365 1,338 207,926 210,054 213,050 216,037 219,283 222,580 225,265 227,778 229,182 230,195 231,089 232,104 29,056 29,219 29,505 29,636 29,742 29,823 29,707 29,704 30,066 29,759 29,724 29,713 178,870 180,835 183,545 186,401 189,541 192,757 195,558 198,074 199,116 200,436 201,365 202,391 1974—Jan. p. . 2,353 387 1,306 233,027 29,713 203,314 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. 2 Includes shares pledged against mortgage loans; beginning 1966, also includes junior liens and real estate sold on contract; beginning 1967, also includes downward structural adjustment for change in universe; and beginning 1973, excludes participation certificates guaranteed by the FHLMC and certain other related items. 3 Beginning 1973, data for these groups available only on a combined basis. 1965....................... 1966....................... 1967....................... 1968....................... 1969....................... Ad vances 5,007 3,804 1,527 2,734 5,531 1970....................... 3,256 1971....................... 2,714 1972....................... 4,790 1973....................... 10,013 1973—Feb............. Mar............ May........... June........... July............ Aug............ Sept............ Nov............ 1974—Jan............. Feb............. 415 764 1,187 916 1,093 1,373 1,380 999 728 295 529 426 322 Repay ments 4,335 2,866 4,076 1,861 1,500 Advances outstanding (end of period) Total Members1 deposits (end of Short Long period) term 1 term 2 5,997 6,935 4,386 5,259 9,289 3,074 5,006 3,985 4,867 8,434 2,923 1,929 401 392 855 1,043 1,036 1,432 1,382 1,041 3,081 7,534 3,002 4,934 2,961 5,018 4,583 10,564 2,331 1,789 2,104 1,744 7,944 8,421 9,429 10,156 11,145 12,365 13,510 14,298 14,799 14,866 15,147 2,774 5,170 2,975 5,446 3,450 5,979 3,428 6,728 4,016 7,129 4,583 7,782 4,737 8,773 4,834 9,464 4,805 9,994 4,669 10,197 4,583 10,564 1,321 1,290 1,142 1,261 1,453 1,183 1,091 1,178 1,264 1,538 1,744 385 15,188 607 14,904 4,486 10,702 4,304 10,600 1,602 1,935 1,929 10,615 5,392 7,936 4,749 7,979 2,845 15,147 302 288 178 189 104 153 235 212 226 228 248 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 t e .— FHLBB data. A 48 REAL ESTATE CREDIT □ APRIL 1974 FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY (In millions of dollars) Mortgage transactions (durine period) Mortgage holdings End of period Government-underwritten Conventional home loans home loans Mortgage commitments Date of auction Total FHAin sured VAguar anteed Pur chases Sales Made during period Out stand ing 196 8 196 9 197 0 1971............ 1972............ 1973............ 7,167 10,945 15,492 17,791 19,791 24,175 5,122 7,676 11,063 12,681 14,624 16,852 2,046 3,269 4,429 5,110 5,112 6,352 1,944 4,120 5,079 3,574 3,699 6,127 20 336 211 71 2,696 6,630 8,047 9,828 8,797 8,914 1,287 3,539 5,203 6,497 8,124 7,889 1973-Feb.. . M ar... A pr.. . May. . Ju n e .. July... Aug... Sept... Oct.. . N ov... D ec... 20,181 20,571 20,791 21,087 21,413 21,772 22,319 22,831 23,348 23,912 24,175 14,872 15,201 15,390 15,581 15,768 15,877 16,085 16,293 16,510 16,734 16,852 5,222 5,259 5,269 5,335 5,411 5,574 5,761 5,937 6,101 6,294 6,352 334 522 355 472 516 516 699 633 659 656 410 478 933 1,211 1,180 1,191 1,102 1,019 724 264 200 158 7,972 8,139 8,742 9,312 9,778 9,859 9,809 9,602 8,918 8,690 7,889 1974-Jan.... 24,424 17,008 6,348 Feb.. . 24,529 17,050 6,336 350 242 110 489 6,715 6,768 1 40 N ote.—FNMA data. Total holdings include conventional loans. Data prior to Sept. 1968 relate to secondary market portfolio of former FNMA. Mortgage holdings include loans used to back bond issues guaranteed by GNMA. Mortgage commitments made during the period include some multifamily and nonprofit hospital loan commitments in addition to 1- to 4-family loan commitments accepted in FNMA’s free market auction system, and through the FNMA-GNMA Tandem Plan (Program 18). Mortgage amounts Average Mortgage Average yield yield amounts (short (short term term commit commit Ac Ac Offered cepted ments) Offered cepted ments) In millions of dollars 1973—June 11. . . 184.5 25. . . 199.3 (In millions of dollars) Mortgage transactions (during period) End of period VA- Total 196 196 196 197 197 197 197 guar anteed 7 8 9 0 1 2 3 3,348 4,220 4,820 5,184 5,294 5,113 4.029 2,756 3,569 4.220 4,634 4,777 4,664 3.642 592 651 600 550 517 436 376 1973-Feb.. Mar.. A p r.. May. June. July.. Aug.. Sept.. Oct... Nov.. Dec.. 4,984 4,663 4,439 3,980 3,908 4,156 4,455 4,429 4,338 4,172 4.029 4,552 4,233 4,010 3,687 3,604 3,753 3,949 3,878 3,843 3,779 3.642 420 418 417 281 292 391 495 540 484 382 376 1974-Jan... Feb.. 3,767 3,798 3,505 3,539 251 249 Pur chases 860 1,089 827 621 393 Sales Mortgage commitments Made during period 1,045 867 615 897 8.04 8.09 110.1 95.0 74.1 69.4 8.44 8.51 539.3 351.4 244.8 181.4 8.38 8.54 108.4 119.0 72.5 61.7 8.67 8.79 Aug. 6 .... 458.5 20. . . 525.0 201.9 223.8 8.71 8.95 154.3 171.3 77.4 77.2 8.98 9.27 Sept. 4. . . 551.0 17. . . 138.1 288.9 107.9 9.27 9.37 118.6 48.6 61.5 46.8 9.53 9.68 Oct. 1. . . 15. . . 29. . . 32.5 24.8 28.2 24.1 16.6 21.6 9.11 8.97 8.94 9.1 18.6 17.4 7.1 16.2 9.4 9.43 9.10 9.01 Nov. 12. . . 26. . . 29.3 24.9 23.1 20.9 8.87 8.81 24.1 31.0 16.7 22.1 8.94 8.90 8.82 9 .... 2 3 .... July Dec. 1 7 .... 38.6 36.2 8.78 51.4 32.2 14. . . 40.2 35.6 8.71 48.9 34.5 8.77 Feb. 11.... Feb. 25. . . 50.4 58.0 49.5 42.3 8.53 8.43 48.4 48.6 48.1 39.4 8.69 8.50 285.3■ 332.5 8.44 8.62 74.2 126.3 50.1 34.2 8.47 8.64 1974—Jan. GNMA MORTGAGE-BACKED SECURITY PROGRAM (In millions of dollars) Out stand ing 1,171 1,266 1 ,131 738 1,494 N ote.—GNMA data. Total holdings include a small amount of con ventional loans. Data prior to Sept. 1968 relate to Special Assistance and Management and Liquidating portfolios of former FNMA and include mortgages subject to participation pool of Government Mortgage Liquida tion Trust, but exclude conventional mortgage loans acquired by former FNMA. In per cent N ote.—Average secondary market yields are gross—before deduction of 38 basis-point fee paid for mortgage servicing. They reflect the average accepted bid yield for home mortgages assuming a prepayment period of 12 years for 30-year loans, without special adjustment for FNMA commit ment fees and FNMA stock purchase and holding requirements. Since Oct. 18, 1971, the maturity on new short-term commitments has been 4 months. Mortgage amounts offered by bidders are total bids re ceived. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ACTIVITY holdings In millions of dollars 142.2 118.7 Mar. 11 . . . 351.1 25. . . 1,154.7 Mortgage In per cent Pass-through securities Period Applications received Securities issued 1,126.2 4,373.6 3,854.5 5,588.0 452.4 2,701.9 2,661.7 3,294.4 1973—Feb., Mar. Apr. May June July. Aug. Sept. Oct.. Nov. Dec. 167.2 339.4 467.8 563.3 243.1 215.7 174.0 533.8 825.7 923.3 515.2 216.8 139.9 182.1 338.8 315.3 384.7 191.3 380.0 240.8 210.4 370.9 1974—Jan.. Feb., 816.2 748.8 665.5 463.1 197 197 197 197 0 1 2 3 Bonds sold 1,315.0 300.0 N ote.—GNMA data. Under the Mortgage-Backed Security Program, GNMA guarantees the timely payment of principal and interest on both pass-through and bond-type securities, which are backed by a pool of mortgages insured by FHA or Farmers Home Admin, or guaranteed by VA and issued by an approved mortgagee. To date, bond-type securities have been issued only by FNMA and FHLMC. APRIL 1974 □ REAL ESTATE CREDIT GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE HOME-MORTGAGE YIELDS (In per cent) Primary market (conventional loans) FHLBB series (effective rate) Period A 49 (In millions of dollars) Secondary market Yield on FHAinsured newhome loans HUD series New homes Existing homes New homes 196 8 196 9 197 0 1971.............. 197 2 197 3 6.97 7.81 8.44 7.74 7.60 7.95 7.03 7.82 8.35 7.67 7.52 8.01 7.12 7.99 8.52 7.75 7.64 7.21 8.29 9.03 7.70 7.52 1973—Mar.. Apr... M ay.. Ju n e .. July. . Aug... Sept.. O ct... Nov.. Dec... 7.68 7.71 7.71 7.79 7.87 7.94 8.17 8.31 8.39 8.49 7.69 7.70 7.77 7.79 7.84 8.01 8.26 8.50 8.58 8.61 7.80 7.90 7.95 8.05 8.40 8.85 8.95 8.80 8.75 8.75 7.63 7.73 7.79 7.89 8.19 1974—Jan .' . F e b ... Mar.p 8.52 8.62 8.64 8.64 8.70 8.62 8.65 8.55 8.54 N ote.—Annual data are averages of monthly figures. The Housing and Urban Development (FHA) data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Any gaps in data are due to periods of adjustment to changes in maximum permissible contract in terest rates. The HUD (FHA) interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional first-mortgage terms, p. A-31) and an assumed prepayment at end of 10 years. Mortgages Period Total Ex New isting homes homes Pro jects 1 Mortgages Prop erty Ex im Total 3 New prove isting homes homes m ents2 5,760 591 583 4,366 642 4,516 4,924 1,123 5,570 1,316 634 641 623 656 693 2,652 2,600 3,405 3,774 4,072 876 980 1,143 1,430 1,493 1,776 1,618 2,259 2,343 2,579 1970............ 11,982 2,667 5,447 3,251 1971............ 14,689 3,900 6,475 3,641 1972............ 12,320 3,459 4,608 3,448 1973............ 7,591 1,675 2,798 2,286 617 674 805 832 3,440 5,961 8,293 7,416 1,311 1,694 2,539 2,313 2,129 4,267 5,754 5,103 1965............ 1966............ 1967............ 1968............ 1969............ 9.18 8.97 8.86 8,78 VA-guaranteed FHA-insured 8,689 7,320 7,150 8,275 9,129 1,705 1,729 1,369 1,572 1,551 1973—Feb.. Mar.. A p r.. May. June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 710 969 620 589 650 559 537 485 556 623 459 162 195 151 158 153 143 100 90 113 100 56 235 268 223 228 229 250 195 177 246 257 168 262 440 172 122 207 100 167 134 126 190 168 52 65 74 81 61 66 75 84 72 76 66 592 596 621 634 646 666 565 565 652 725 473 187 185 187 198 182 204 193 184 221 216 138 405 411 434 436 464 462 372 381 431 509 335 1974—Jan... Feb.. 482 399 73 54 243 206 115 92 52 46 652 520 175 133 477 387 1 Monthly figures do not reflect mortgage amendments included in annual totals. 2 Not ordinarily secured by mortgages. 3 Includes refinancing loans, mobile home loans and also a small amount of alteration and repair loans, not shown separately; only such loans in amounts of more than $1,000 need be secured. N ote.—FHA and VA data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. FEDERAL HOME LOAN MORTGAGE CORPORATION ACTIVITY DELINQUENCY RATES ON HOME MORTGAGES (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure but delinquent for— End of period Loans in fore closure Total 30 days 60 days 90 days or more 1965............... 1966............... 1967............... 1968............... 1969............... 3.29 3.40 3.47 3.17 3.22 2.40 2.54 2.66 2.43 2.43 .55 .54 .54 .51 .52 .34 .32 .27 .23 .27 .40 .36 .32 .26 .27 1970................ 1971................ 1972................ 3.64 3.93 4.65 2.67 2.82 3.42 .61 .65 .78 .36 .46 .45 .33 .46 .48 1971—11......... I l l ....... IV........ 3.27 3.59 3.93 2.36 2.54 2.82 .53 .62 .65 .38 .43 .46 .38 .41 .46 1972—1.......... I I ........ I l l ....... IV i . . . 3.16 3.27 3.82 J4.66 \4.65 2.21 2.38 2.74 3.41 3.42 .58 .53 .65 .79 .78 .37 .36 .43 .46 .45 .50 .48 .52 .50 .48 1973—I .......... II III IV....... 3.63 3.84 4.36 4.70 2.52 2.81 3.10 3.42 .68 .64 .78 .79 .43 .39 .48 .49 End of period 1 First line is old series; second line is new series. Note.—Mortgage Bankers Association of America data from reports on 1- to 4-family FHA-insured, VA-guaranteed, and con ventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Mortgage transactions (during period) Mortgage holdings Total FHAVA Con ven tional 0 1 2 3 325 968 1,789 2.604 325 821 1,503 1,743 147 286 861 325 778 1,298 1,334 1973—Jan.. Feb., Mar. Apr., May, June July. Aug. Sept. O ct.. Nov. Dec. 1.761 1,677 1,718 1,784 1,906 2,029 2,158 2,307 2,423 2,527 2,565 2.604 1.517 1,535 1,589 1,646 1,695 1,716 1,714 1.728 1.729 1.742 1,746 1.743 244 142 128 138 211 313 444 579 694 785 819 861 76 76 119 126 147 154 140 161 126 113 46 50 1974—Jan .. 2,621 1,736 885 34 197 197 197 197 Mortgage commitments Made during period Pur chases 64 408 409 99 150 68 51 17 21 Out stand ing 1,606 1,629 182 198 186 142 166 141 193 187 159 139 208 143 63 45 43 226 300 295 343 344 316 278 291 288 218 207 186 26 161 N ote.—FHLMC data. Data for 1970 include only the period beginning Nov. 26 when the FHLMC first became operational. Holdings, purchases, and sales include participations as well as whole loans. Mortgage holdings in clude loans used to back bond issues guaranteed by GNMA. Commitment data cover the conventional and Govt.-underwritten loan programs. A 50 CONSUMER CREDIT □ APRIL 1974 TOTAL CREDIT (In millions of dollars) Instalment End of period Total Noninstalment Total Auto mobile paper Other consumer goods paper Home improve ment loans 1 Personal loans Total Single payment loans Charge accounts Service credit 1940. 1950. 1955. 1960. 8,338 21,471 38,830 56,141 5,514 14,703 28,906 42,968 2,071 6,074 13,460 17,658 1,827 4,799 7,641 11,545 371 1,016 1,693 3,148 1,245 2,814 6,112 10,617 2,824 6,768 9,924 13,173 800 1,821 3,002 4,507 1,471 3,367 4,795 5,329 553 1,580 2,127 3,337 1965 1966 1967 1968. 1969, 89,883 96,239 100,783 110,770 121,146 70,893 76,245 79,428 87,745 97,105 28,437 30,010 29,796 32,948 35,527 18,483 20,732 22,389 24,626 28,313 3,736 3,841 4,008 4,239 4,613 20,237 21,662 23,235 25,932 28,652 18,990 19,994 21,355 23,025 24,041 7,671 7,972 8,558 9,532 9,747 6,430 6,686 7,070 7,193 7,373 4,889 5,336 5,727 6,300 6,921 1970 1971 , 1972. 1973 127,163 138,394 157,564 180,486 102,064 111,295 127,332 147,437 35,184 38,664 44,129 51,130 31,465 34,353 40,080 47,530 5,070 5,413 6,201 7,352 30,345 32,865 36,922 41,425 25,099 27,099 30,232 33,049 9,675 10,585 12,256 13,241 7,968 8,350 9,002 9,829 7,456 8,164 8,974 9,979 1973--Feb ............................... Mar.............................. Apr............................... M ay............................. June............................. July............................... Aug............................... Sept.............................. 157,582 159,320 161,491 164,277 167,083 169,148 171,978 173,035 174,840 176,969 180,486 127,959 129,375 131,022 133,531 136,018 138,212 140,810 142.093 143,610 145,400 147,437 44,817 45,610 46,478 47,518 48,549 49,352 50,232 50,557 51,092 51,371 51,130 39,795 39,951 40,441 41,096 41,853 42,575 43,505 44,019 44,632 45,592 47,530 6,239 6.328 6,408 6,541 6,688 6.845 7,009 7,120 7,235 7,321 7,352 37,108 37,486 37,695 38,376 38,928 39,440 40,064 40,397 40,651 41,116 41,425 29,623 29,945 30,469 30,746 31,065 30,936 31,168 30,942 31,230 31,569 33,049 12,409 12,540 12,686 12,817 12,990 12,968 13,111 13,088 13,145 13,161 13,241 7,646 7,702 8,036 8,319 8,555 8,479 8,605 8,335 8,590 8,785 9,829 9,568 9,703 9,747 9,610 9,520 9,489 9,452 9,519 9,495 9,623 9,979 178,686 177,522 146,575 145,927 50,617 50,386 47,303 46,781 7,303 7,343 41,352 41,417 32.111 31;595 13,117 13,159 8,875 8,018 10,119 10,418 Nov.............................. Dec............................... 1974- Feb............................... ' 1 Holdings of financial institutions; holdings of retail outlets are in cluded in “Other consumer goods paper.” hold, family, and other personal expenditures, except real estate mortgage loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965 and B ulletins for Dec. 1968 and Oct. 1972. N ote.—Consumer credit estimates cover loans to individuals for house INSTALMENT CREDIT (In millions of dollars) Financial institutions End of period Total Total Com mercial banks Finance compa nies 1 Credit unions Retail outlets Mis cellaneous lenders 1 Total Auto mobile dealers 2 Other retail outlets 1940. 1950. 1955, 1960. 5,514 14,703 28,906 42,968 3,918 11,805 24,398 36,673 1,452 5.798 10,601 16,672 2,278 5,315 11,838 15,435 171 590 1,678 3,923 17 102 281 643 1,596 2,898 4,508 6,295 167 287 487 359 1,429 2,611 4,021 5,936 1965 1966, 1967 1968, 1969. 70,893 76,245 79,428 87,745 97,105 61,102 65,430 67,944 75,727 83,989 28,962 31,319 33,152 37,936 42,421 23,851 24,796 24,576 26,074 27,846 7,324 8,255 9,003 10,300 12,028 965 1,060 1,213 1,417 1,694 9,791 10,815 11,484 12,018 13,116 315 277 287 281 250 9,476 10,538 11,197 11,737 12,866 1970 1971, 1972. 1973 102,064 111,295 127,332 147,437 88,164 97,144 111,382 129,305 45,398 51,240 59,783 69,495 27,678 28,883 32,088 37,243 12,986 14,770 16,913 19,609 2,102 2,251 2,598 2,958 13,900 14,151 15,950 18,132 218 226 261 299 13,682 13,925 15,689 17,833 1973- 127,959 129,375 131,022 133,531 136,018 138,212 140,810 142,093 143,610 145,400 147,437 112,630 114,190 115,727 118,165 120,450 122,479 124,823 126,040 127,307 128,553 129,305 60,582 61,388 62,459 63,707 64,999 66,065 67,381 67,918 68,627 69,161 69,495 32,431 32,750 33,078 33.859 34,367 35,020 35,634 35,993 36,365 36,887 37,243 16,973 17,239 17,455 17,832 18,269 18,517 18,961 19,207 19,339 19,517 19,609 2,644 2,813 2,735 2,767 2,815 2,877 2,847 2,922 2,976 2,988 2,958 15,329 15,185 15,295 15,366 15,568 15,733 15,987 16,053 16,303 16,847 18,132 266 272 278 284 289 293 296 297 300 302 299 15,063 14,913 15,017 15,082 15,279 15,440 15,691 15,756 16,003 16,545 17,833 146,575 145,927 128,870 128,807 69,429 69,246 37,140 37,148 19,429 19,430 2,872 2,983 17,705 17,120 296 293, 17,409 16,827 May.................................................. June.................................................. July.................................................. 1974—Jan.................................................... 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis dealers is included with “Other retail outlets.” cellaneous lenders include savings and loan associations and mutual savings banks. See also N o t e to table above. APRIL 1974 o CONSUMER CREDIT A 51 MAJOR HOLDERS OF INSTALMENT CREDIT ( In m illio n s o f d o lla r s ) Commercial banks End of period Automobile paper Total Pur chased Direct Finance companies 1 Other consumer goods paper Mobile homes Credit cards Other Home improve ment loans Per sonal loans Total Auto mobile paper Other consumer goods paper Other Mobile homes Home improve ment loans Per sonal loans 1940............. 1950............. 1955.............. 1960............. 1,452 5,798 10,601 16,672 339 1,177 3,243 5,316 276 1,294 2,062 2,820 V 232 1,456 2,042 2,759 165 834 1,338 2,200 440 1,037 1,916 3,577 2,278 5,315 11,838 15,435 1,253 3,157 7,108 7,703 159 692 1,448 2,553 193 80 42 173 673 1,386 3,240 5,006 1965.............. 1966............. 1967.............. 1968.............. 1969.............. 28,962 31,319 33,152 37,936 42,421 10,209 11,024 10,972 12,324 13,133 5,659 5,956 6,232 7,102 7,791 4,166 4,681 5,469 1,307 2,639 5,387 6,082 2,571 2,647 2,731 2,858 2,996 6,357 7,011 7,748 8,958 9,780 23,851 24,796 24,576 26,074 27,846 9,218 9,342 8,627 9,003 9,412 4,343 4,925 5,069 5,424 232 214 192 166 174 10,058 10,315 10,688 11,481 12,485 1970.............. 1971.............. 1972............. 1973............. 45,398 51,240 59,783 69,495 12,918 13,837 16,320 19,038 7,888 9,277 10,776 12,218 4,423 5,786 7,223 3,792 4,419 5,288 6,649 7,113 4,501 5,122 6,054 3,071 3,236 3,544 3,982 10,616 11,547 12,947 14,331 27,678 28,883 32,088 37,243 9,044 9,577 10,174 11,927 2,464 2,561 2,916 3,378 3,237 3,052 3,589 4,434 199 247 497 917 12,734 13,446 14,912 16,587 1973—Feb... M ar... Apr... M ay.. Ju n e.. July.. Aug... Sept.. Oct... Nov... Dec... 60,582 61,388 62,459 63,707 64,999 66,065 67,381 67,918 68,627 69,161 69,495 16,680 16,951 17,327 17,716 18,138 18,439 18,771 18,886 19,123 19,198 19,038 10,977 11,216 11,436 11,680 11,866 12,023 12,190 12,160 12,262 12,306 12,218 5,932 6,035 6,163 6,321 6,473 6,629 6,825 6,956 7,106 7,208 7,223 5,283 5,243 5,290 5,360 5,502 5,603 5,792 5,909 5,991 6,171 6,649 5,158 5,289 5,401 5,538 5,688 5,815 5,923 5,978 6,012 6,035 6,054 3,515 3,538 3,581 3,635 3,700 3,774 3,863 3,903 3,950 3,979 3,982 13,037 13,116 13,261 13,457 13,632 13,782 14,017 14,126 14,183 14,264 14,331 32,431 32,750 33,078 33,859 34,367 35,020 35,634 35,993 36,365 36,887 37,243 10,267 10,419 10,617 10,872 11,121 11,365 11,583 11,721 i l ,859 11,949 11,927 2,909 2,943 2,991 3,025 3,081 3,132 3,187 3,235 3,269 3,310 3,378 3,752 3,796 3,831 3,985 4,002 4,103 4,194 4,265 4,316 4,371 4,434 562 581 611 656 694 733 771 809 847 886 917 14,941 15,011 15,028 15,321 15,469 15,687 15,899 15,963 16,074 16,371 16,587 1974—Ja n ... Feb... 69,429 69,246 18,885 18,770 12,113 12,028 7,237 7,285 6,826 6,770 6,041 6,063 3,944 3,937 14,383 14,393 37,140 37,148 11,754 11,710 3,392 3,406 4,460 4,486 940 968 16,594 16,578 1 F in a n c e c o m p a n ie s c o n s is t o f th o s e i n s titu tio n s f o rm e rly c la ssified a s s a le s fin a n c e , c o n s u m e r fin a n c e , a n d o t h e r fin a n c e c o m p a n ie s . 5 _775 See a ls o N o t e to ta b le a t to p o f p r e c e d in g p a g e , NONINSTALMENT CREDIT INSTALMENT CREDIT HlELD BY OTHER FINANCIAL LENDERS ( In m illio n s o f d o lla r s ) (In millions of dollars) End of period Total Auto mobile paper Other con Home sumer improve goods ment paper loans Per sonal loans 1940................................ 1950................................ 1955................................ 1960................................ 188 692 1,959 4,566 36 159 560 1,460 7 40 130 297 13 102 313 775 132 391 956 2,034 1965................................ 1966................................ 1967................................ 1968................................ 1969................................ 8,289 9,315 10,216 11,717 13,722 3,036 3,411 3,678 4,238 4,941 498 588 654 771 951 933 980 1,085 1,215 1,443 3,822 4,336 4,799 5,493 6,387 1970................................ 1971................................ 1972................................ 1973................................ 15,088 17,021 19,511 22,567 5,116 5,747 6,598 7,648 1,177 1,472 1,690 1,959 1,800 1,930 2,160 2,453 6,995 7,872 9,063 10,507 1973—Feb...................... Mar..................... Apr...................... May..................... June..................... July..................... Aug...................... Sept..................... Oct....................... Nov..................... Dec...................... 19,617 20,052 20,190 20,599 21,084 21,394 21,808 22,129 22,315 22,505 22,567 6,627 6,752 6,820 6,966 7,135 7,232 7,392 7,493 7,548 7,616 7,648 1,698 1,732 1,748 1,785 1,828 1,853 1,893 1,920 1,935 1,952 1,959 2,162 2,209 2,216 2,250 2,294 2,338 2,375 2,408 2,438 2,456 2,453 9,130 9,359 9,406 9,598 9,827 9,971 10,148 10,308 10,394 10,481 10,507 1974—Jan....................... 22,301 Feb...................... 22,413 7,569 7,585 1,938 1,944 2,419 2,438 10,375 10,446 N o t e . —Other financial lenders consist of credit unions and miscel laneous lenders. Miscellaneous lenders include savings and loan associa tions and mutual savings banks. Single payment loans End of period Total Charge accounts Com mer cial banks Other finan cial insti tutions Retail outlets Credit cards 1 Service credit 1940............... 1950............... 1955............... 2,824 6,768 9,924 13,173 636 1,576 2,635 3,884 164 245 367 623 1,471 3,291 4,579 4,893 76 216 436 553 1,580 2,127 3,337 1965............... 1966............... 1967............... 1968............... 1969............... 18,990 19,994 21,355 23,025 24,041 6,690 6,946 7,478 8,374 8,553 981 1,026 1,080 1,158 1,194 5,724 5,812 6,041 5,966 5,936 706 874 1,029 1,227 1,437 4,889 5,336 5,727 6,300 6,921 1971............... 1973............... 25,099 27,099 30,232 33,049 8,469 9,316 10,857 11,753 1,206 1,269 1,399 1,488 6,163 6,397 7,055 7,783 1,805 1,953 1,947 2,046 7,456 8,164 8,974 9,979 1973—F eb .... Mar__ Apr__ M ay... June... July. .. Aug.... Sept.... Oct.. . . Nov.... Dec... . 29,623 29,945 30,469 30,746 31,065 30,936 31,168 30,942 31,230 31,569 33,049 10,989 11,074 11,237 11,359 11,520 11,491 11,655 11,608 11,654 11,669 11,753 1,420 1,466 1,449 1,458 1,470 1,477 1,456 1,480 1,491 1,492 1,488 5,735 5,825 6,129 6,387 6,544 6,424 6,475 6,229 6,554 6,761 7,783 1,911 1,877 1,907 1,932 2,011 2,055 2,130 2,106 2,036 2,024 2,046 9,568 9,703 9,747 9,610 9,520 9,489 9,452 9,519 9,495 9,623 9,979 1974—Ja n .. . . 32,111 F e b .... 31,595 11,652 11,663 1,465 1,496 6,894 6,136 1,981 1,882 10,119 10,418 1 Service station and miscellaneous credit-card accounts and home* heating-oil accounts. Bank-credit-card accounts outstanding are included in estimates of instalment credit outstanding. See also N o t e to table at top of preceding page. A 52 CONSUMER CREDIT □ APRIL 1974 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Other consumer goods paper S.A.i S.A.i Home improvement loans Period S.A.i N.S.A. N.S.A. N.S.A. S.A.i N.S.A. Personal loans S.A.i N.S.A. Extensions 1966. 1967. 1968. 1969. 1970. 1971. 1972. 1973. 82,832 87,171 99,984 109,146 112,158 124,281 142,951 165,083 27,192 26,320 31,083 32,553 29,794 34,873 40,194 46,453 26,329 29,504 33,507 38,332 43,873 47,821 55,599 66,859 2,223 2,369 2,534 2,831 2,963 3,244 4,006 4,728 27,088 28,978 32,860 35,430 35,528 38,343 43,152 47,043 1973—Feb.. Mar.. A pr.. May. June. July.. Aug.. Sept.. Oct... N ov.. Dec.. 13,434 13,852 13,465 13,932 13,646 14,542 14,294 13,691 14,149 14,275 12,677 11,214 13,681 13,661 14,792 14,608 14,812 15,099 12,624 14,454 14,098 14,117 3,972 4,001 3,822 3,989 3,762 3,930 3,968 3,939 3,912 3,819 3,315 3,407 4,164 4,101 4,409 4,313 4,177 4,252 3,476 4,196 3,693 2,872 5,245 5,349 5,563 504 505 943 961 537 911 5,978 5,254 4,252 5,169 5,378 5,698 5,678 5,753 6,065 5,217 5,894 5,980 6,826 364 406 365 374 400 433 408 410 415 402 429 300 377 372 431 450 472 471 420 439 389 348 3,853 4.096 3,715 4,065 3,979 4,236 3,957 3,805 3,911 4,076 3,679 3,255 3,971 3,810 4,254 4,167 4,410 4,311 3,511 3,925 4,036 4,071 1974—Ja n ... Feb.. 13,714 13,541 12,375 11,227 3,492 3,389 2,934 2,945 5,662 5,647 5,471 4,525 373 409 298 341 4,187 4.096 3,672 3,416 Repayments 1966. 1967. 1968. 1969. 1970. 1971. 1972. 1973. 77,480 83,988 91,667 99,786 107,199 115,050 126.914 144,978 25,619 26,534 27,931 29,974 30,137 31,393 34,729 39,452 2,118 2,202 2,303 2,457 2,506 2,901 3,218 3,577 24,080 27,847 31,270 34,645 40,721 44,933 49,872 59,409 25,663 27,405 30,163 32,710 33,835 35,823 39,095 42,540 1973—Feb.. Mar.. A pr.. May. June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 11,437 11,808 12,061 11,941 12,034 12,544 12,399 12,332 12,449 12,549 12,267 10,623 12,265 12,014 12,283 12,121 12,618 12,501 11,341 12,937 12,308 12,080 3,145 3,225 3,218 3,261 3,253 3,334 3,293 3,406 3,427 3,471 3,338 2,943 3,371 3,233 3,369 3,282 3,374 3,372 3,151 3,661 3,414 3,113 4,627 4,755 4,963 4,917 4,955 5,141 5,168 5,072 5,149 5,154 5,001 4,409 5,013 4,888 5,043 4,921 5,031 5,135 4,703 5,281 5,020 4,888 275 286 294 290 300 308 298 322 308 301 332 254 288 292 298 303 315 307 309 324 303 317 3,390 3,542 3,586 3,473 3,526 3,761 3,640 3,532 3,565 3,623 3,596 3,017 3,593 3,601 3,573 3,615 3,898 3,687 3,178 3,671 3,571 3,762 1974- -Jan.. Feb., 12,797 12,870 13,237 11,875 3,433 3,394 3,447 3,176 5,193 5,340 5,698 5,047 356 323 347 301 3,815 3,813 3,745 3,351 Net change in credit outstanding 2 1966. 1967. 1968. 1969. 1970. 1971. 1972. 1973. 5,352 3,183 8,317 9,360 4,959 9,231 16,037 20,105 2,249 1,657 2,237 3,687 3,152 2,888 5,727 7,450 1,573 -2 1 4 3,152 2,579 -343 3,480 5,465 7,001 1,425 1,573 2,697 2,720 1,693 2,520 4,057 4,503 105 167 231 374 457 343 788 1,151 1973—Feb.. Mar.. A pr.. May. June. Ju ly .. Aug.. Sept.. Oct... Nov.. D ec.. 997 044 404 991 612 998 895 359 700 726 410 591 1,416 1,647 2,509 2,487 2,194 2,598 1,283 1,517 1,790 2,037 827 776 604 728 509 596 675 533 485 348 -2 3 464 793 868 1,040 1,031 803 880 325 535 279 -241 618 594 600 587 550 802 793 465 762 824 253 -157 156 490 655 757 722 930 514 613 960 1,938 89 120 71 84 100 125 110 88 107 101 97 46 89 80 133 147 157 164 111 115 86 31 463 554 129 592 453 475 317 273 346 453 83 238 378 209 681 552 512 624 333 254 465 309 1974—Jan... Feb.. 917 671 -862 -648 59 -5 -513 -231 469 307 -227 -522 17 86 -4 9 40 372 283 -7 3 65 1 Includes adjustments for differences in trading days. 2 Net changes in credit outstanding are equal to extensions less re payments. Note.—Estimates are based on accounting records and often include financing charges. Renewals and refinancing of loans, purchases and sales of instalment paper, and certain other transactions may increase the amount of extensions and repayments without affecting the amount outstanding. For back figures and description of the data, see “ Consumer Credit,” Section 16 (New) of Supplem ent to Banking and M onetary Statistics , 1965, and B u lletin s for Dec. 1968 and Oct. 1972. APRIL 1974 □ CONSUMER CREDIT A 53 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In m illions o f dollars) Total Finance companies Commercial banks Other financial lenders Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A.i S.A.i N.S.A. S.A.i N.S.A. Extensions 82,832 87,171 99,984 109,146 112,158 124,281 142,951 165,083 1966. 1967. 1968. 1969. 1970. 1971 . 1972. 1973. 30,073 31,382 37,395 40,955 42,960 51 ,237 59,339 69,726 25,897 26,461 30,261 32,753 31,952 32,935 38,464 43,221 16,494 18,090 19,122 20,240 21,526 22,143 24,541 28,722 10,368 11,238 13,206 15,198 15,720 17,966 20,607 23,414 1973—Feb.. Mar.. A pr.. M ay. June. July.. Aug.. Sept.. Oct... Nov.. D ec.. 13,434 13,852 13,465 13,932 13,646 14,542 14,294 13,691 14,149 14,275 12,677 11,214 13,681 13,661 14,792 14,608 14,812 15,099 12,624 14,454 14,098 14,117 5,664 5,853 5,644 5,859 5,684 5,976 6,195 5,809 6,060 6,222 5,124 4,826 5,890 5,973 6.356 6,219 6,232 6,518 5,376 6,169 5,697 5,224 3,557 3,654 3,555 3,820 3,584 3,824 3,685 3,602 3,623 3,564 3,279 2,972 3,598 3,576 4,027 3,817 3,931 3,877 3,189 3,765 3,722 3,714 1,964 2,131 1,792 1,868 1,978 2,110 1,943 2,019 1,951 2,029 1,897 1,711 2,083 1,832 2,060 2,211 2,233 2,194 1,912 1,968 1,929 1,772 2,249 2,214 2,474 2,385 2,400 2,632 2,471 2,261 2,515 2,460 2,377 1,705 2,110 2,280 2,349 2,361 2,416 2,510 2,147 2,552 2,750 3,407 1974—Jan.. Feb., 13,714 13,541 12,375 11,227 5,715 5,794 5,345 4,837 3,693 3,656 3,127 3,056 1,911 1,861 1,639 1,644 2,395 2,230 2,264 1,690 Repayments 1966. 1967. 1968. 1969. 1970. 1971. 1972. 1973. 77,480 83,988 91,667 99,786 107,199 115,050 126,914 144,978 9,342 10,337 11,705 13,193 14,354 16,033 18,117 20,358 24,952 26,681 28,763 30,981 31,705 31,730 35,259 38,066 27,716 29,549 32,611 36,470 40,398 45,395 50,796 60,014 15,470 17,421 18,588 19,142 20.742 21,892 22.742 26,540 1973—Feb.. Mar.. A pr.. May. June. July.. Aug.. Sept.. Oct... Nov.. Dec.. 11,437 11,808 12,061 11,941 12,034 12,544 12,399 12,332 12,449 12,549 12,267 10,623 12,265 12,014 12,283 12,121 12,618 12,501 11,341 12,937 12,308 12,080 4,684 4,870 4,919 4,976 4,890 5,112 5,146 5,167 5,212 5,345 5,088 4,392 5,084 4,902 5,108 4,927 5,166 5,202 4,839 5,460 5,163 4,890 3,030 3,141 3,251 3,100 3.241 3,312 3.241 3,144 3,287 3,143 3,151 2,718 3,279 3,248 3,246 3,309 3,278 3,263 2,830 3,393 3,200 3,358 1,625 1 ,665 1.693 1,612 1.694 1,771 1,738 1,757 1,703 1,814 1,766 1,459 1,648 1,694 1,651 1,726 1,923 1,780 1,591 1,782 1,739 1,710 2,098 2,132 2,198 2,253 2,209 2,349 2,274 2,264 2.247 2.247 2,262 2,054 2,254 2,170 2,278 2,159 2,251 2,256 2,081 2,302 2,206 2,122 1974—Jan.. Feb.. 12,797 12,870 13,237 11,875 5,254 5,430 5,411 5,020 3,418 3,423 3,230 3,048 1,823 1,692 1,905 1,532 2,302 2,325 2,691 2,275 Net change in credit outstanding 2 1966......................................... 1967......................................... 1968......................................... 1969......................................... 1970......................................... 1971......................................... 1972......................................... 1973......................................... 5,352 3’,183 8,317 9,360 4,959 9,231 16,037 20,105 2,357 1 *833 4*784 4*485 2,977 5*842 8,543 9,712 1,026 901 1,501 2,005 1,366 1,933 2,490 3,056 945 —220 1,498 1 *772 —168 1,205 3,205 5,155 1,024 669 534 1,098 784 251 1,799 2,182 1973—Feb............................... Mar.............................. Apr............................... M ay............................. June............................. July............................... Aug.............................. Sept.............................. Oct................................ Nov.............................. Dec............................... 1,997 2,044 1,404 1,991 1,612 1,998 1,895 1,359 1,700 1,726 410 591 1 ,416 1,647 2,509 2,487 2,194 2,598 1,283 1,517 1,790 2,037 980 983 725 883 794 864 1,049 642 848 877 36 434 806 1,071 1,248 1,292 1,066 1,316 537 709 534 334 527 513 304 720 343 512 444 458 336 421 128 254 319 328 781 508 653 614 359 372 522 356 339 466 99 256 284 339 205 262 248 215 131 252 435 138 409 485310 414 321 186 190 62 151 82 276 132 191 283 197 -3 268 213 115 -349 -1 4 4 110 71 202 165 254 66 250 544 1,285 1974—Jan................................ Feb............................... 917 671 -862 -648 461 364 -6 6 -183 275 233 -103 8 88 169 -266 112 93 -9 5 -427 -585 1 Includes adjustments for differences in trading days. 2 Net changes in credit outstanding are equal to extensions less re payments, except in certain months when data for extensions and repay ments have been adjusted to eliminate duplication resulting from large transfers of paper. In those months the differences between extensions and repayments for some particular holders do not equal the changes in their outstanding credit. Such transfers do not affect total instalment credit extended, repaid, or outstanding. N ote.—Other financial lenders include credit unions and miscellane ous lenders. See also N ote to preceding table and footnote 1 at bottom of p. A-50. INDUSTRIAL PRODUCTION: S.A. □ APRIL 1974 A 54 MARKET GROUPINGS (1967 = 100) Grouping 1967 pro por tion 1973 aver age v 1973 Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec Jan.r Feb.p Mar. Total index................................... 100.0 125.6 123.7 124.1 124.8 125.6 126.7 126.5 126. I 127.0 127.5 126.5 125.4 124.5 123.9 Products, total.................................. Final products ............................... Consumer goods....................... Equipment................................ Intermediate products................. Materials........................................... 62.21 123.4 121.7 122.0 122.9 123.7 124.2 123.7 124.3 124.3 125.3 124.0 122.6 122.1 121.8 48.95 121.3 119.6 120.0 120.8 121.3 122.1 121.4 122.4 122.7 123.7 122.6 120.9 120.5 120.1 28.53 20.42 13.26 37.79 131.7 106.7 131.1 129.3 130.8 104.1 129.4 127.0 130.9 104.7 129.3 127.7 131.8 105.7 130.5 128.3 131.9 106.6 132.0 129.0 132.8 107.3 132.5 130.9 131.2 107.6 132.1 130.9 132.3 108.5 131.0 131.3 132.6 108.9 130.6 131.1 133.5 110.1 131.1 131.5 131.3 110.1 129.1 130.7 129.2 109.1 129.3 129.5 128.0 110.0 128.3 128.2 127.3 110.0 127.8 127.2 142.4 134.0 138.2 137.3 138.5 134.6 128.4 126.7 126.6 Consumer goods Durable consumer goods .................. Automotive products................... Autos......................................... Auto parts and allied goods... Home goods................. ................... Appliances, TV, and radios........ Appliances and A /C ............ TV and home audio............. Carpeting and furniture.............. Misc. home goods........................ Nondurable consumer goods ............ Clothing........................................ Consumer staples......................... Consumer foods and tobacco.. Nonfood staples....................... Consumer chemical products Consumer paper products... Consumer fuel and lighting., Residential utilities........... 7.86 139.0 140.4 140.5 141.5 141. 2.84 136.8 144.1 141.7 142.6 142.6 141.7 121.1 129. 131.4 133.7 120.6 108.1 103.9 103.0 1.87 125.4 130.8 128.1 129.8 132.6 134.0 103.9 118.4 122.5 124.8 106.2 90.0 86.4 86.3 142.8 137. 135.0 .97 158.9 169.9 167.5 167.0 161.9 156.7 154.2 151.8 148.4 150.9 147. 5.02 1.41 .92 .49 1.08 2.53 140.3 138.3 139.8 140.9 141.31 142.9 141.1 142.9 140.9 141.2 142.5 139.8 139.6 140.0 144.8 143.0 149.7 148.0 147.2 147.8 146.3 149.4 143.4 140.4 147.9 139.1 134. 156.9 156.9 157.6 157.8 154.1 156.0 153.3 159.8 159.3 154.7 172.2 155.0 152.5 150.0 145.7 146.7 147.8 148.9 155.4 154.2 153.3 153.9 152.7 150.1 153.5 152.6 133.6 132.7 131.4 134.0 134.7 134.7 132.9 134.8 134.1 136. 136.3 134.4 136.9 137.9 20.67 129.0 127.1 127.2 128.0 128.1 129.1 130.2 130.1 130.8 131.5 130.2 129.4 128.6 127.5 4.32 116.0 115.4 114.5 114.2 116.0 116.5 117.0 118.0 116.8 117.3 120.3 116.3 16.34 132.4 130.3 130.6 131.7 131.4: 132.5 133.6 133.2 134.5 135.2 132.8 132.7 133.0 131.9 8.37 122.2 120.9 121.0 120.9 119.6 121.3 121.9 122.2 123.3 126.5 125.0 126.1 125.3 123.5 7.98 2.64 1.91 3.43 2.25 143.1 153.3 121.3 147.5 156.8 140.1 151.1 118.7 143.8 153.5 140.7 151.5 119.0 144.4 152.3 143.1 154.9 121.7 145.6 152.1 143.7 153.5 121.7 148.2 155.4 144.1 153.0 122.5 149.2 157. 145.8 155.6 124.1 150.4 160.0 144.8 153.4 124.4 149.7 160.9 146.2 156.2 122.5 151.9 161.9 144.3 154.9 123.6 147. 158.0 141.1 156.7 120.5 140.7 149.8 139.6 157.8 119.4 137.0 145.6 141.1 140.6 162.7 117.2 138.0 149.6 127. 126.9 126.1 124.9 126.0 118.5 140.3 124.3 127.8 118.5 136.0 127.2 127.3 128.7 129.1 140.0 140.8 109.4 109.4 130.0 Equipment Business equipment........................... Industrial equipment.................... Building and mining equip. Manufacturing equipment. Power equipment..................... Commercial, transit, farm eq.. . . , Commercial equipment............. Transit equipment.................... Farm equipment....................... Defense and space equipment........... Military products......................... 12.74 122.6 118.6 119.6 121.3 122.5 123.0 124.6 125.8 126.2 6.77 1.45 3.85 1.47 120.1 120.4 113.0 138.5 115.6 116.0 107.5 137.1 117.4 118.1 109.4 137.6 119.1 118.8 112.0 138.2 119.8 119.1 113.1 138.3 120.5 119.6 113.9 138.5 122.5 123.0 115.1 141.0 124.1 123.7 117.3 142.3 124.5 124.7 117.3 143.0 5.97 3.30 2.00 .67 125.5 135.0 109.8 125.1 121.9 130.6 110.2 114.6 122.2 131.3 107.5 120.9 123.7 131.6 109.8 126.5 125.4 134.1 109.7 129.3 125.8 135.9 109.0 126.4 127.0 137.0 108.4 132. 127.7 138.2 109.6 129.4 128.1 140.1 109.8 123.5 130.3 141.3 111.4 132.4 129.2 139.3 111.1 133.4 128.1 139.1 109.5 130.0 7.68 80.2 80.1 80.0 79.7 80.1 81.1 79.8 8 0.0 80.9 81.9 81.2 5.15 80.3 81.5 81.0 80.1 80.0 81.1 79.7 79.0 79.1 79.3 125.6 126.0 118.2 144.6 80.0 81.3 80.4 125.8 130.5 119.5 138.0 81.3 80.7 125.5 130.5 118.5 138.9 81.2 80.8 Intermediate products Construction products..................... Misc. intermediate products........... . 5.93 134.2 130.7 132.2 132.2 135.9 134.5 135.3 134.9 134.3 133.7 131.1 133.1 130.4 128. 7.34 128.6 128.3 127.0 129.2 128.9 132.7 129.6 128.1 127.5 129.0 127.4 126.1 126.5 Materials Durable goods materials.................... 20.91 Nondurable goods materials ............... 13.99 129.1 Consumer durable parts............... Equipment parts............................ Durable materials nec................... Textile, paper, and chem. m at.... Nondurable materials n.e.c.......... Fuel and power, industrial............... 130.1 127.6 127.9 128.6 129.2 131.7 131. 132.3 132.2 133.0 132.7 129.5 127.2 124.5 4.75 127.8 125.9 129.0 125.7 128.8 126.9 128.6 129.9 128.2 128.4 121.0 111.9 106.9 103.0 5.41 119.3 114.6 113. 118.0 118.2 124.5 122.3 122.1 122.7 125.8 125.3 125.0 125.3 121.9 10.75 136.5 134.9 134.7 135.3 134.9 137.6 138.0 138.7 139.0 138.7 141.6 139.7 137.0 135.4 127.1 128.5 128.9 129.4 130.4 130.6 130.3 130.1 130.7 129.2 131.2 130.3 131.8 8.58 139.8 136.3 138.8 139.4 140.2 142.2 142.4 141.9 141.4 142.4 140.1 142.4 140.6 143.2 5.41 112.2 112.7 112.2 112.3 112.3 112.1 111.7 112.0 112.3 112.1 111.9 113.6 114.1 113.6 2.89 123.9 122.6 122.1 122.9 125.3 126.9 126.3 128.3 126.9 124.9 123.1 121.1 123.8 123.6 Supplementary groups Home goods and clothing................ Containers........................................ . 9.34 129.0 127.6 128.1 128.6 129.7 130.7 130.0 131.3 129.8 130.2 132.4 128.9 126.9 126.2 1.82 139.9 145.2 139.1 138.0 141.4 135.1 140.5 139.8 141.2 142.3 141.0 148.4 141.5 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. Final products............ Consumer goods. . . Equipment............... Intermediate products. For N ote see p. A-55. 446.9 446.2 449.7 451.8 452.9 446.2 449.8 452.6 456.9 449.1 444.8 441.4 439.4 343.9 239.5 104.5 102.7 343.7 238.9 104. 102.3 346.6 241.1 105.6 103.1 347.8 241.3 106.6 104.3 347.7 241.0 106.6 104.8 341.9 235.4 106.6 104.6 346.3 239.0 107.3 103.5 349.7 241.7 108.0 103.1 353.3 243.6 109.5 103.6 346.9 237.8 109.0 102.5 341.5 233.2 108.5 103.2 339.4 230.0 109.1 102.2 338.2 229.1 109.1 101.4 APRIL 1974 □ INDUSTRIAL PRODUCTION: S.A. A 55 INDUSTRY GROUPINGS (1967 = 100) 1967 pro por tion Grouping Manufacturing...................................... 1973 aver age p 1974 1973 Mar. Apr. May June July Aug. 88.55 125.2 123.4 123.8 124.9 125.6 126.5 126.1 Durable............................................ 52.33 122.1 119.9 120.6 121.8 Nondurable...................................... 36.22 129.6 128.6 128.4 129.3 Mining and utilities............................. 11.45 128.9 127.3 126.6 127.0 6.37 110.2 109.5 109.0 109.1 Mining.............................................. Utilities............................................. 5.08 152.3 149.6 148.7 149.5 123.0 129.3 128.2 109.5 151.5 123.8 130.5 130.4 111.0 154.8 122.6 130.9 130.7 111.5 154.8 Sept. Oct. Nov. Dec. r Jan . r Feb.* M ar.e 126.3 126.4 127.4 126.4 125.0 123.9 123.4 123.1 131.2 126.9 110.4 147.6 119.4 130.3 128.0 111.6 148.5 118.6 130.4 128.3 112.8 147.8 129.5 130.6 131.0 130.5 130.2 128.6 126.5 123.3 130.7 131.3 111.8 155.8 123.5 130.4 131.5 111.9 156.2 124.3 131.3 130.6 111.3 154.6 120.7 131.0 125.9 110.8 144.9 Durable manufactures Primary and fabricated metals ............ 12.55 128.8 125.8 127.3 128.1 128.7 130.6 129.5 Machinery and allied goods ................. 32.44 117.3 115.1 Primary metals................................. Iron and steel, subtotal............... Fabricated metal products.............. 6.61 127.1 123.5 125.8 126.1 124.5 128.1 125.6 127.8 128.7 128.9 130.7 129.4 127.0 124.0 4.23 121.6 117.5 119.7 119.8 119.9 120.9 118.5 122.7 123.6 124.2 127.7 125.4 121.8 116.9 5.94 130.7 128.4 128.9 130.3 133.4 133.5 133.8 131.5 132.4 133.1 130.0 131.4 130.5 129.3 Machinery........................................ 17.39 125.9 Nonelectrical machinery.............. 9.17 125.1 Electrical machinery.................... 8.22 126.8 Transportation equipment.............. 9.29 109.2 4.56 138.1 Motor vehicles and parts............ Aerospace and misc. trans. e q ... 4.73 Instruments....................................... 2.07 Ordnance, private and Govt........... 3.69 121.4 119.0 123.9 110.3 141.0 80.8 133.8 87.1 115.7 117.3 118.8 119.3 117.7 118.9 118.9 119.9 143.8 85.2 129.9 130.3 129.2 129.8 129.2 128.8 129.7 129.3 127.8 129.1 126.2 126.1 126.9 126.1 127.8 112.2 143.3 82.2 140.2 86.7 127.6 127.1 128.0 112.1 144.1 81.3 140.8 86.7 130.0 130.0 129.8 107.3 133.9 81.7 141.5 83.7 129.2 130.0 128.5 108.8 136.4 82.3 141.0 83.8 112.9 126.8 127.8 125.6 93.4 109.3 78.2 143.2 85.0 124.7 124.0 125.4 111.0 140.9 82.2 138.9 85.4 128.5 128.9 128.2 105.7 131.0 81.3 140.9 83.8 118.6 114.7 113.4 127.9 128.3 127.5 95.7 112.7 79.3 143.0 85.0 122.6 121.5 123.8 110.0 140.1 81.1 134.7 86.4 130.4 130.3 130.5 109.8 137.8 82.9 142.6 84.3 130.9 130.2 131.6 103.0 124.6 82.2 142.7 86.1 125.3 i26.8 123.9 93.4 110.0 11A Lumber, clay , and glass ....................... 4 .44 129.5 129.1 Furniture and miscellaneous................. 2.90 133.4 133.1 6.90 114.6 114.0 113.3 115.0 114.5 115.4 117.5 116.8 116.7 118.8 116.0 114.2 112.6 7.92 122.1 122.4 120.8 122.0 122.8 123.8 124.5 121.7 Lumber and products..................... Clay, glass, and stone products___ Furniture and fixtures..................... Miscellaneous manufactures........... 1.65 128.9 129.5 129.1 127.5 126.6 125.4 128.4 128.9 127.4 127.3 126.3 124.2 124.4 2.79 129.9 128.9 130.4 132.0 130.5 132.3 129.6 128.8 131.2 130.4 128.7 131.9 127.4 136.0 135.4 135.9 137.5 138.2 136.1 136.4 135.3 133.4 135.8 137.3 1.38 126.3 122.8 123.8 126.5 126.5 127.5 129.5 130.4 128.8 127.9 124.9 124.2 125.3 1.52 143.3 143.0 141.6 144.5 143.6 143.5 144.9 145.3 142.9 144.3 144.5 141.8 145.5 Nondurable manufactures Textiles, apparel, and leather .............. Textile mill products....................... Apparel products............................. Leather and products. . . . .............. Paper and printing .......... . ................... 2.69 127.1 127.1 126.1 127.2 129.2 128.9 129.0 130.2 130.2 129.4 130.9 128.1 125.7 3.33 112.9 112.4 111.7 110.0 111.0 112.1 113.6 115.4 114.9 115.3 118.5 116.4 .88 83.6 85.0 86.8 83.0 86.6 79.2 81.0 86.4 83.1 82.9 82.9 78.3 80.3 122.1 121.3 121.9 121.2 121.7 120.5 Paper and products......................... Printing and publishing................... 3.1 135.4 137.1 133.6 135.1 134.6 135.3 137.0 134.8 135.3 136.2 136.7 138.7 137.2 4.74 113.2 112.4 112.2 113.2 114.8 116.0 116.2 113.6 112.1 112.3 110.8 110.4 109.3 ' 109.6 Chemicals, petroleum, and rubber . . . . 11.92 149.3 146.3 147.9 150.2 149.8 151.8 151.0 150.9 151.1 151.6 151.6 150.9 149.7 151.3 Chemicals and products.................. Petroleum products......................... Rubber and plastics products......... Foods and tobacco ................................ Foods................................................ Tobacco products............................ 7.86 150.1 146.8 147.8 150.2 150.4 152.0 151.4 153.0 152.7 153.0 154.5 154.8 154.4 155.3 1.80 127.4 123.5 126.9 128.5 129.7 129.3 128.2 126.0 130.4 129.5 125.5 122.6 119.2 119.4 2.26 164.0 163.4 165.1 166.8 163.9 168.8 167.9 163.6 161.9 164.5 162.3 159.8 158.0 9.48 121.9 121.5 120.7 121.5 119.5 121.3 122.0 122.2 121.7 124.7 123.0 124.7 125.5 124.6 8.81 122.7 121.8 121.3 122.4 120.3 122.4 122.9 123.2 122.4 125.4 124.5 125.6 126.5 125.4 .67 111.6 118.1 112.9 111.2 108.1 105.3 110.1 109.1 113.7 115.8 104.2 113.3 Mining 117.0 116.8 116.2 111.8 116.9 120.6 120.4 120.9 121.3 ; 122.0 119.5 119.5 119.0, .51 130.8 127.8 128.5 127.0 121.6 128.4 131.4 136.6 138.3 135.2 135.2 130.7 131.1 .75 109.5 109.4 108.8 108.8 105.2 109.1 113.1 109.5 109.2 111.7 113.1 111.9 111.6 M etal, stone, and earth minerals ......... 1.26 118.1 Coal, oil, and g a s ................................. 5.11 108.3 107.6 107.1 107.3 108.9 109.5 109.2 109.5 109.7 108.8 107.5 108.7 10 9 . 7 111.3 .69 103.6 105.7 99.9 100.9 108.0 109.0 104.0 109.8 103.0 104.1 110.4 108.7 112.9 114.4 4.42 109.0 107.9 108.3 108.4 109.1 109.5 110.0 109.7 110.8 109.6 107.0 108.7 109.3 110.8 Metal mining................................... Stone and earth minerals................ Coal.................................................. Oil and gas extraction..................... Utilities Electric.................................................. Gas........................................................ 3.91 160.7 157.4 156.2 156.8 159.7 164.0 163.8 165.1 165.3 163.4 155.6 153.0 1.17 124.2 Note.—Data for the complete year of 1972 are available in a pamphlet Industrial Production Indexes 1972 from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Published groupings include series and subtotals not shown sepa rately. Figures for individual series and subtotals are published in the monthly Business Indexes release. Indexes without seasonal adjustment are no longer being published in the Bulletin, but they are available in the Board‘s monthly release ’’Industrial Production (the G.12.3), which is available upon request to Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A 56 BUSINESS ACTIVITY; CONSTRUCTION □ APRIL 1974 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Market Period Products Total Final Total Total Manu facturing 2 In dustry Con sumer Equip goods ment Ca pacity Con utiliza struc tion tion in mfg. con (1967 tracts Manu output Inter Mate factur = 100) mediate rials ing Nonagricultural em ploy Em ment— ploy Total 1 ment Prices * Total retail sales3 Pay rolls Con sumer Whole sale com modity 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 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 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 71.3 72.8 77.7 82.0 86.8 56.4 55.6 61.9 65.6 70.1 71.0 72.4 76.9 81.1 87.3 66.4 66.4 72.4 77.0 82.6 65.4 65.6 71.4 75.8 81.2 80.1 77.6 81.4 83.0 85.5 86.1 89.4 82.4 82.1 84.4 86.1 88.6 88.0 84.5 87.3 87.8 89.3 68.8 68.0 73.3 76.0 80.1 70 70 75 79 83 88.7 89.6 90 6 91.7 92.9 94.9 94.5 94.8 94.5 94.7 1965..................... 1966..................... 1967..................... 1968..................... 1969..................... 89.2 88.1 86.8 93.0 78.7 93.0 97.9 96.8 96.1 98.6 93.0 99.2 100.0 100.0 100.0 100.0 100.0 100.0 105.7 105.8 105.8 106.6 104.7 105.7 110.7 109.7 109.0 111.1 106.1 112.0 91.0 99.8 100.0 105.7 112.4 89.1 98.3 100.0 105.7 110.5 89.0 93.2 91.9 94.8 87.9 100.0 87.7 113.2 86.5 123.7 92.3 97.1 100.0 103.1 106.7 93.9 99.9 100.0 101.4 103.2 88.1 97.8 100.0 108.3 116.6 91 97 100 109 114 94.5 97.2 100.0 104.2 109.8 96.6 99.8 100.0 102.5 106.5 1970..................... 1971..................... 1972..................... 1973^................... 106.6 106.8 115.2 125.6 106.0 106.4 113.8 123.4 104.5 104.7 111.9 121.3 111.7 112.6 121.1 131.1 107.7 107.4 117.4 129.3 105.2 105.2 114.0 125.2 78.3 75.0 '78.6 83.0 123.1 145.4 165.3 183.3 107.2 107.3 110.5 114.8 98.0 93 9 96.7 101.9 114.1 116.3 130.2 146.9 120 122 142 116.3 121.2 125.3 133.1 110.4 113.9 119.8 135.5 1973—Feb........... Mar.......... Apr........... May......... June......... July.......... Aug.......... Sept.......... Oct........... Nov.......... Dec........... 123.4 123.7 124.1 124.8 125.6 126.7 126.5 126.8 127.0 127.5 126,5 121.5 121.7 122.0 122.9 123.7 124.2 123.7 124.3 124.3 125.3 '124.0 119.3 119.6 120.0 120.8 121.3 122.1 121.4 122.4 122.7 123.7 '122.6 82.8 191.0 193.0 177.0 '83.3 173.0 183.0 175.0 83.3 199.0 182.0 191.0 82.6 194.0 161.0 113.5 113.8 114.0 114.4 114.7 114.6 115.0 115.3 116.0 116.4 116.4 100.7 101.0 101.5 101.7 102.1 101.8 102.1 102.1 102.9 103.3 103.2 142.9 142.6 144.8 144.9 145.3 146.3 146.7 149.8 151.7 155.8 153.7 158 160 157 159 157 163 162 163 164 164 161 128.6 129.8 130.7 131.5 132.4 132.7 135.1 135.5 136.6 137.6 138.5 126.9 129.7 130.7 133.4 136.7 134.7 142.9 140.2 139.5 141.8 145.3 155.0 116.2 '102.6 80.1 187.0 '116.6 101.7 116.4 101.1 151.6 '151.0 149.8 164 164 168 139.7 141.5 150.4 152.7 154.5 110.3 96.3 115.7 89.4 123.6 95.5 131.7 106.7 130.2 130.8 130.9 131.8 131.9 132.8 131.2 132.3 132.6 133.5 '131.3 104.1 104.1 104.7 105.7 106.6 107.3 107.6 108.5 108.9 110.1 '110.1 129.5 126.7 122.7 129.4 127.0 123.4 129.3 127.7 123.8 130.5 128.3 124.9 132.0 129.0 125.6 132.5 130.9 126.5 132.1 130.9 126.1 131.0 131.3 126.3 130.6 131.1 126.4 131.1 131.5 127.4 '129.1 '130.7 '126.4 1974—Jan........... '125.4 '122.6 '120.9 '129.2 '109.1 '129.3 Feb........... r 124.5 '122.1 '120.5 '128.0 '110.0 '128.3 Mar.......... 123.9 121.8 120.1 127.3 110.0 127.8 \ I j J 1 \ J i \ J '129.5 '125.0 I '128.2 '123.9 127.2 123.4 J 1 Employees only: excludes personnel in the Armed Forces. 2 Production workers only. 3 F.R. index based on Census Bureau figures. 4 Prices are not seasonally adjusted. Latest figure is final. 5 Figure is for first quarter 1973. Note. — All series: Data are seasonally adjusted unless otherwise noted. Capacity utilization: Based on data from Federal Reserve, McGrawHill Economics Department, and Dept, of Commerce. Construction contracts; McGraw-Hill Informations Systems Company F.W. Dodge Division, monthly index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) Type of ownership and type of construction 1972 1973 1973 1972 Dec. Feb. Mar. Apr. May June July 1974 Aug. Sept. Oct. Nov. Dec. Jan. Total construction 1......................... 90,979 101,071 6,423 6,839 8,644 8,814 9,428 9,910 9,228 10,303 8,151 8,983 7,905 6,133 5,954 By type of ownership: Public........................................ Private 1.................................... 24,043 26,686 1,629 1,717 2,046 2,071 2,359 2,995 2,581 2,968 2,328 2,055 2,140 1,855 2,135 66,936 73,385 4,793 5,122 6,599 6,743 7,069 6,916 6,647 7,335 5,822 6,928 5,765 4,277 3,819 By type of construction: Residential building 1.............. 44,975 46,246 3,115 3,277 4,643 4,512 4,754 4,612 4,224 4,233 3,638 3,673 3,299 2,341 2,231 Nonresidential building........... 27,021 31,761 2,189 2,229 2,707 2,634 2,629 2,976 2,991 3,241 2,719 2,758 2,655 2,210 2,307 Nonbuilding............................. 18,983 22,064 1,119 1,333 1,294 1,668 2,045 2,322 2,013 2,828 1,794 2,552 1,951 1,581 1,415 Private housing units authorized... (In thousands, S.A., A.R.) 2,219 1,796 2,399 2,209 2,129 1,939 1,838 2,030 1,780 1,750 1,596 1,316 1,314 1,237 1,301 1 Because of improved procedures for collecting data for 1-family homes, some totals are not strictly comparable with those prior to 1968. To im prove comparability, earlier levels may be raised by approximately 3 per cent for total and private construction, in each case, and by 8 per cent for residential building. NorE.—Dollar value of construction contracts as reported by the McGraw-Hill Informations Systems Company, F.W. Dodge Division. Totals of monthly data exceed annual totals because adjustments— negative—are made in accumulated monthly data after original figures have been published. Private housing units authorized are Census Bureau series for 14,000 reporting areas with local building permit systems; 1971 data are for 13,000 reporting areas. APRIL 1974 □ CONSTRUCTION A 57 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Resi dential Total Buildings Total Indus trial Com mercial Other build ings 1 Other Total Mili tary High way Conser vation Other 2 and develop ment 1962 3 ........ 1963 4 ........ 1964 59,965 64,563 67,413 42,096 45,206 47,030 25,150 27,874 28,010 16,946 17,332 19,020 2,842 2,906 3,565 5,144 4,995 5,396 3,631 3,745 3,994 5,329 5,686 6,065 17,869 19,357 20,383 1,266 1,179 910 6,365 7,084 7,133 1,523 1,694 1,750 8,715 9,400 10,590 1965 1966 1967 1968 1969 73,412 76,002 77,503 86,626 93,368 51,350 51,995 51,967 59,021 65,404 27,934 25,715 25,568 30,565 33,200 23,416 26,280 26,399 28,456 32,204 5,118 6,679 6,131 6,021 6,783 6,739 6,879 6,982 7,761 9,401 4,735 5,037 4,993 4.382 4,971 6,824 7,685 8,293 10,292 11,049 22,062 24,007 25,536 27,605 27,964 830 727 695 808 879 7,550 8,405 8,591 9,321 9,250 2,019 2,194 2,124 1,973 1,783 11,663 12,681 14,126 15,503 16,052 94,167 66,071 109,238 79,367 123,836 93,640 135,079 102,568 31,864 43,268 54,186 57,720 34,207 36,099 39,454 44,848 6,538 5,423 4,676 6,058 9,754 11,619 13,462 15,569 5,125 5,437 5,898 6,131 12,790 13,620 13,418 17,090 28,096 29,871 30,196 32,511 718 901 1,080 1,162 9,981 10,658 10,448 1,908 2,095 2,172 1,924 15,489 16,217 16,496 1973—F eb ... M ar.. Apr . r May r Juner July'. Aug. r Sept. T Oct.r. Nov.r Dec.r 136,416 137,467 133,858 134,177 133.680 136,524 136.370 136,208 135,871 134,831 133.370 104,128 103,838 101,298 101,878 102,708 105,029 105,318 103,034 102,388 101,922 99,611 61,487 60,747 58,111 57,490 58,083 59,007 59,233 58.505 56,458 54,667 52,728 42,641 43,091 43,187 44,338 44,625 46,022 46,085 44,529 45,930 47,255 46,883 5,180 5,479 5,287 5,338 5,928 6,340 6,687 6,324 6,573 6,742 7,057 14,873 15,071 15,473 16,118 15,704 16,110 15,800 15,111 15,561 16,139 15,685 6,145 6,179 6,282 6,251 6.383 6,492 6,122 5,742 5,883 6,035 6,089 16,443 16,362 16,145 16,631 16,610 17,080 17,476 17,352 17,913 18,339 18,052 32,288 33,629 32,560 32,349 30,972 31,495 31,052 33,174 33,483 32,909 33,759 1,422 1,303 1,158 1,277 1,162 1,341 1,048 962 1,032 1,040 1,128 11,019 10,454 9,901 9,645 10,094 10,762 10,391 11,210 1,989 2,825 2,062 2,569 2,235 1,977 2,196 2,296 2,330 17.858 19,047 19,439 18.858 17,481 17,415 17,417 18,706 1974—Jan .r. Feb.p . 132,762 133,181 98,391 99,227 50,439 49,880 47,952 49,347 6,899 7,938 16,323 16,530 6,199 6,230 18,531 18,649 34,371 33,954 1,282 1,386 197 197 197 197 0 1 2 3 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 of new series affecting most private nonresidential groups. 4 Beginning 1963, reflects inclusion of new series under “Public” (for State and local govt, activity only). N ote.—Census Bureau data; monthly series at seasonally adjusted annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.F Period Region Type of structure Total North North South Central east West Mobile home ship ments (N.S.A.) Governmentunderwritten (N.S.A.) Private and public (N.S.A.) 5- or 12- to 4- morefamily family family Total Private Public Total FHA 450 1,635 1,561 1,603 1,529 32 32 292 264 221 205 71 59 151 191 VA 1963.......................... 1964.......................... 1,603 1,529 261 254 328 340 591 578 430 357 1,012 970 108 1965.......................... 1966.......................... 1967.......................... 1968.......................... 1969......................... 1,473 1,165 1,292 1,508 1,467 270 206 215 227 206 362 288 337 369 349 575 472 520 618 588 266 198 220 294 324 964 778 844 900 814 87 61 72 81 85 422 325 376 527 571 1,510 1,196 1,322 1,546 1,500 1,473 1,165 1,292 1,508 1,467 37 31 30 38 33 246 195 232 283 284 197 158 180 227 233 49 37 53 56 51 216 217 240 318 413 1970.......................... 1,434 1971......................... 2,052 1972......................... 2,357 1973......................... 2,045 218 264 330 277 294 434 443 440 612 869 1,057 897 310 486 527 428 813 1,151 1,309 1,132 85 120 141 118 536 781 906 795 1,469 2,084 2,379 2,057 1,434 2,052 2,357 2,045 35 32 22 12 482 621 475 247 421 528 371 161 61 93 104 86 401 497 576 580 1973—Feb................ Mar............... Apr................ M ay.............. June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec.r ............ 2,423 2,283 2,153 2,330 2,152 2,152 2,030 1,844 1,674 1,675 1,403 373 321 293 294 345 245 255 281 242 241 192 548 433 397 531 485 475 466 431 383 322 278 1,070 1,115 908 983 873 1,020 844 748 715 750 654 432 414 555 522 449 412 465 384 334 362 279 1,363 1,244 1,231 1,243 1,140 1,232 1,108 990 957 938 767 127 128 127 159 127 144 107 97 81 84 73 933 912 795 929 886 776 814 757 637 653 563 140 201 205 234 203 203 200 149 149 135 91 138 200 205 234 203 203 197 148 147 133 90 2 1 21 27 27 29 27 20 23 15 15 16 11 14 19 18 18 17 12 14 10 10 11 7 7 8 9 11 8 8 9 6 6 5 4 43 57 62 57 57 50 54 45 46 40 29 1974—Jan.r............. Feb.*............ 1,470 1,800 254 257 331 371 656 841 229 331 794 1,041 89 82 587 677 88 86 19 13 7 29 N ote.—Starts are Census Bureau series (including farm starts) except lor Govt.-underwritten, which are from Federal Housing Admin, and Digitized for Veterans FRASER Admin, and represent units started, including rehabilitation 589 1 1 3 1 2 1 2 units under FHA, based on field office reports of first compliance inspec tions. Data may not add to totals because of rounding. Mobile home shipments are as reported by Mobile Homes Manufac turers Assn. A 58 EMPLOYMENT □ APRIL 1974 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total noninstitutional population (N.S.A.) Period Not in labor force (N.S.A.) Total labor force (S.A.) Unem ployed Unemploy ment rate2 (per cent; S.A.) Employed1 Total Total In nonagri cultural industries In agriculture 1968........................... 1969........................... 1970........................... 1971........................... 1972........................... 1973........................... 135,562 137,841 140,182 142,596 145,775 148,263 53,291 53,602 54,280 55,666 56,785 57,222 82,272 84,240 85,903 86,929 88,991 91,040 78,737 80,734 82,715 84,113 86,542 88,714 75,920 77,902 78,627 79,120 81,702 84,409 72,103 74,296 75,165 75,732 78,230 80,957 3,817 3,606 3,462 3,387 3,472 3,452 2,817 2,832 4,088 4,993 4,840 4,304 3.6 3.5 4.9 5.9 5.6 4.9 1973—Mar................ Apr................. May............... June............... July................ Aug................ Sept................ Oct................. Nov................ Dec................. 147,541 147,729 147,940 148,147 148,361 148,565 148,782 149,001 149,208 149,436 57,856 57,906 58,050 55,417 55,133 56,129 57,484 56,955 57,040 57,453 90,523 90,622 90,597 91,133 91,139 91,011 91,664 92,038 92,186 92,315 88,162 88,272 88,263 88,818 88,828 88,704 89,373 89,749 89,903 90,033 83,782 83,854 83,950 84,518 84,621 84,513 85,133 85,649 85,649 85,669 80,313 80,498 80,630 81,088 81,109 81,088 81,757 82,194 82,088 82,026 3,469 3,356 3,320 3,430 3,512 3,425 3,376 3,455 3,561 3,643 4,380 4,418 4,313 4,300 4,207 4,191 4,240 4,100 4,254 4,364 5.0 5.0 4.9 4.8 4.7 4.7 4.7 4.6 4.7 4.8 1974-Jan................. Feb................. Mar................ 149,656 149,857 150,066 58,303 58,165 58,183 92,801 92,814 92,747 90,543 90,556 90,496 85,811 85,803 85,863 82,017 81,951 82,164 3,794 3,852 3,699 4,732 4,753 4,633 5.2 5.2 5. 1 1 Includes self-employed, unpaid family, and domestic service workers. 2 Per cent of civilian labor force. N ote.—Bureau of Labor Statistics. Information relating to persons 16 years of age and over is obtained on a sample basis. Monthly data relate to the calendar week that contains the 12th day; annual data are averages of monthly figures. Description of changes in series beginning 1967 is available from Bureau of Labor Statistics. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract construc tion Period Total Manufac turing 1967......................................................... 1968......................................................... 65,857 67,915 70,284 70,593 70,645 72,764 75,569 19,447 19,781 20,167 19,349 18,529 18,933 19,820 613 606 619 623 602 607 625 3,208 3,285 3,435 3,381 3,411 3,521 3,647 1973—Mar............................................... Apr............................................... May.............................................. June.............................................. July.............................................. Aug............................................... Sept.............................................. Oct................................................ Nov.............................................. Dec............................................... 74,914 75,105 75,321 75,526 75,493 75,747 75,961 76,363 76,679 76,626 19,643 19,727 19,782 19,856 19,804 19,861 19,882 20,016 20,095 20,090 610 608 608 629 631 634 633 639 644 646 1974—Jan................................................ Feb.*............................................ M ar.*.......................................... 76,533 76,773 76,648 20,006 19,892 19,780 654 658 653 Aug............................................... Sept.............................................. Oct................................................ Nov ............................................... Dec............................................... 74,255 74,861 75,404 76,308 75,384 75,686 76,238 76,914 77,322 77,391 19,521 19,586 19,667 20,002 19,729 20,018 20,132 20,168 20,202 20,110 1974—Jan................................................ Feb.*............................................ M ar.*........................................... 75,620 75,754 75,963 19,818 19,726 19,657 1970.......................................................... 1971.......................................................... 1973*........................................................ Transporta tion & pub lic utilities Trade Finance Service Govern ment 4,261 4,310 4,429 4,493 4,442 4,495 4,611 13,606 14,084 14,639 14,914 15,142 15,683 16,289 3,225 3,382 3,564 3,688 3,796 3,927 4,053 10,099 10,623 11,229 11,612 11,869 12,309 12,865 11,398 11,845 12,202 12,535 12,856 13,290 13,659 3,604 3,571 3,620 3,654 3,680 3,676 3,700 3,694 3,711 3,732 4,580 4,591 4,593 4,597 4,598 4,617 4,629 4,671 4,654 4,644 16,163 16,217 16,256 16,262 16,294 16,352 16,388 16,465 16,520 16,398 4,024 4,031 4,044 4,049 4,048 4,064 4,078 4,088 4,095 4,101 12,716 12,746 12,776 12,820 12,828 12,906 12,995 13,044 13,122 13,128 13,574 13,614 13,642 13,659 13,610 13,637 13,656 13,746 13,838 13,887 3,636 3,744 3,710 4,684 4,688 4,670 16,417 15,456 16,467 4,109 4,126 4,123 13,136 13,219 13,229 13,891 13,990 14,016 598 3,294 4,539 3,442 4,559 603 608 3,616 4,593 642 3,837 4,661 July.............................................. 3,934 4,653 644 648 3,981 4,659 641 3,944 4,671 640 3,923 4,680 3,822 4,659 643 642 3,639 4,644 15,880 16,088 16,200 16,335 16,262 16,279 16,367 16,515 16,780 17,113 4,000 4,019 4,040 4,089 4,113 4,121 4,082 4,076 4,079 4,080 12,627 12,771 , 12,865 12,999 12,982 13,009 12,982 13,057 13,096 13,062 13,796 13,793 13,815 13,743 13,067 12,971 13,419 13,855 14,041 14,101 642 643 640 16,290 16,112 16,167 4,072 4,089 4,098 12,913 13,060 13,136 13,987 14,194 14,246 Mining SEASONALLY ADJUSTED NOT SEASONALLY ADJUSTED 1973—Mar.............................................. Apr............................................... May.............................................. June.............................................. N o t e . —Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period that includes the 12th of the month. Proprietors, self-employed 3,280 3.317 3,391 4,618 4,613 4,628 persons, domestic servants, unpaid family workers, and members of Armed Forces are excluded. Beginning with 1970, series has been adjusted to Mar. 1971 bench mark. APRIL 1974 □ PRICES A 59 CONSUMER PRICES (1967 = 100) Housing All items Food 51.3 38.8 44.1 53.9 88.7 94.5 48.3 30.6 38.4 50.7 88.0 94.4 53.7 59.1 90.2 94.9 97.2 1966......................... 1967.......................... 100.0 1968.......................... 104.2 1969......................... 109.8 99.1 100.0 103.6 108.9 1970......................... K 7 1 ......................... 1972......................... 1973......................... 116.3 121.3 125.3 133.1 114.9 118.4 123.5 141.4 1973—Feb................ Mar............... Apr............... M ay.............. June.............. July............... Aug............... Sept............... Oct................ Nov............... Dec............... 1974—Jan................. Feb................ Period Homeownership Fuel oil and coal Gas and elec tricity 86.3 92.7 40.5 48.0 89.2 94.6 81.4 79.6 98.6 99.4 97.2 100.0 104.2 110.8 98.2 96.3 100.0 100.0 102.4 105.7 105.7 116.0 97.0 100.0 103.1 105.6 118.9 124.3 129.2 135.0 110.1 115.2 119.2 124.2 128.5 133.7 140.1 146.7 128.6 129.8 130.7 131.5 132.4 132.7 135.1 135.5 136.6 137.6 138.5 131.1 132.0 134.5 132.3 136.5 132.8 137.9 133.3 139.8 133.9 140.9 134.2 149.4 135.2 148.3 136.6 148.4 138.1 150.0 139.4 151.3 M40.6 122.1 122.6 123.0 123.5 123.9 124.3 125.0 125.4 125.9 126.3 126.9 139.7 141.5 153.7 157.6 1929.......................... 1933.......................... 1941.......................... 1945.......................... 1960.......................... 1965.......................... N o t e .— B u r e a u c le r ic a l w o rk e rs . Health and recreation Total 142.2 143.4 Rent Fur Apparel Trans and nish porta ings upkeep tion and opera tion Total Med ical care Per sonal care Read Other ing goods and and recrea serv tion ices 93.8 95.3 48.5 36.9 44.8 61.5 89.6 93.7 44.2 47.8 89.6 95.9 85.1 93.4 37.0 42.1 79.1 89.5 41.2 55.1 90.1 95.2 47.7 62.4 87.3 95.9 49.2 56.9 87.8 94.2 99.6 100.0 100.9 102.8 97.0 100.0 104.4 109.0 96.1 100.0 105.4 111.5 97.2 100.0 103.2 107.2 96.1 100.0 105.0 110.3 93.4 100.0 106.1 113.4 97.1 100.0 104.2 109.3 97.5 100.0 104.7 108.7 97.2 100.0 104.6 109.1 110.1 117.5 118.5 136.0 107.3 114.7 120.5 126.4 113.4 118.1 121 .0 124.9 116.1 119.8 122.3 126.8 112.7 118.6 119.9 123.8 116.2 122.2 126.1 130.2 120.6 128.4 132.5 137.7 113.2 116.8 119.8 125.2 113.4 119.3 122.8 125.9 116.0 120.9 125.5 129.0 142.9 143.2 143.6 144.2 145.0 145.2 147.0 149.2 151.5 152.6 153.6 127.2 127.8 128.3 129.3 131.6 131.7 132.8 133.6 141.1 155.6 172.8 124.5 125.0 125.5 125.7 125.4 125.5 125.8 126.5 127.4 129.8 131.0 122.6 123.0 123.6 123.9 124.7 125.0 125.3 126.1 126.7 127.5 128.0 123.6 124.8 125.8 126.7 126.8 125.8 126.5 128.3 129.6 130.5 130.5 121.5 122.6 123.5 124.6 124.8 124.5 123.9 125.0 125.8 126.7 121.1 128. 1 128.6 129.2 129.6 130.0 130.3 130.5 131.1 132.1 132.6 133.0 135.3 135.8 136.2 136.6 137.0 137.3 137.6 138.3 140.6 140.9 141.4 122.4 123.1 123.8 124.4 124.9 125.3 125.7 126.3 127.3 128.1 129.2 124.3 124.5 125.2 125.6 125.9 126.2 126.1 126.8 127.2 127.5 127.6 127.1 127.6 128.2 128.5 129.0 129.5 129.4 129.9 130.3 130.8 131.3 127.3 154.8 128.0 155.8 194.6 202.0 134.3 137.3 129.0 130.1 128.8 130.4 128.1 129.3 133.7 134.5. 143.4 129.8 128.3 128.9 132.3 76.0 54.1 57.2 58.8 91.7 96.9 142.2 130.8 131.8 o f L a b o r S ta tis tic s in d e x f o r c ity w a g e -e a rn e rs a n d WHOLESALE PRICES: SUMMARY (1 9 6 7 = 100, e x c e p t a s n o te d ) Industrial commodities Period Pro All Farm cessed com prod foods modi ucts and ties feeds 1960............................. 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 T ex tiles, etc. 9 5 .3 9 4 .8 9 4 .8 9 4 .7 9 5 .2 9 9 .5 9 7 .7 9 8 .6 9 8 .5 9 9 .2 Ma Non- Trans Rub Lum Paper, Met chin me- porta Mis Hides, Fuel, Chem ery Furni als, icals, ber, ber, ture, tallic tion cella and etc. etc. etc. etc. etc. etc. equip etc. min equip neous etc. erals ment1 ment 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 97.2 97.6 97.6 97.1 97.3 93.0 93.3 93.7 94.5 95.2 95.9 1965............................. 96.6 98.7 95.5 9 6 . 4 9 9 .8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 97.7 1966............................. 99.8 105.9 101.2 9 8 .5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 100.0 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102.2 1968............................. 102.5 102.5 102.2 1 0 2 .5 1 0 3 .7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 1969............................. 106.5 109.1 107.3 1 0 6 .0 1 0 6 .0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 1970............................. 1971............................. 1972............................. 1973............................. 110.4 113.9 119.1 135.5 111.0 112.9 125.0 176.3 112.0 110.0 114.3 114.0 120.8 1 1 7 .9 148.1 1 2 6 .9 1 0 7 .2 1 0 8 .6 1 1 3 .6 1 2 3 .8 110.1 114.0 131.3 143.1 105.9 114.2 118.6 145.5 102.2 104.2 104.2 110.0 108.6 109.2 109.3 112.4 113.7 127.0 144.3 177.2 108.2 110.1 113.4 122.1 116.7 119.0 123.5 132.8 111.4 115.5 117.9 121.7 107.5 109.9 111.4 115.2 113.3 122.4 126.1 130.2 104.5 110.3 113.8 115.1 109.9 112.8 114.6 119.7 1973—Feb................... Mar................... Apr................... M ay................. June................. July................... Aug................... Sept.................. Oct.................... Nov.................. Dec................... 126.9 129.7 130.7 133.5 136.7 134.9 142.7 140.2 139.5 141.8 145.3 150.9 160.9 160.6 170.4 182.3 173.3 213.3 200.4 188.4 184.0 187.2 137.0 141.4 139.8 145.0 151.8 146.5 166.2 156.3 153.1 151.9 155.7 1 2 1 .3 1 2 2 .7 1 2 4 .4 1 2 5 .8 1 2 6 .9 1 2 6 .9 1 2 7 .4 1 2 8 .1 1 2 9 .6 1 3 3 .5 13 7 .1 144.9 143.5 120.8 145.0 1 2 2 .3 142.2 1 2 3 .7 140.9 1 2 4 .2 141.4 1 2 5 .2 143.0 1 2 6 .8 143.8 1 2 8 .5 143.8 1 3 0 .0 143.0 1 3 1 .4 141.9 126.0 126.7 131.8 135.5 142.8 142.8 142.9 144.8 150.5 179.2 201.3 105.6 106.7 107.7 109.3 110.4 110.8 111.0 111.5 112.7 113.5 115.6 110.1 110.3 110.6 111.5 112.6 112.9 113.1 112.8 114.0 114.8 116.5 161.0 173.2 182.0 186.9 183.1 177.8 178.8 181.9 180.3 184.7 186.1 116.5 118.3 119.8 120.7 122.0 122.3 123.3 124.4 125.8 127.6 128.7 126.9 129.2 130.5 131.7 132.5 132.8 133.7 134.4 135.9 138.5 141.8 119.4 120.0 120.8 121.5 121.9 122.0 122.3 122.6 123.1 123.8 124.6 113.1 113.5 114.1 115.1 115.2 115.2 115.9 116.0 116.6 117.2 117.5 128.4 129.0 130.0 130.5 131.1 130.0 130.0 129.9 130.9 131.5 132.6 114.2 114.5 114.9 115.1 115.0 115.0 115.1 114.5 115.9 116.1 117.3 117.1 117.9 118.6 119.5 120.2 120.9 121.0 121.1 121.0 121.3 121.6 1974—Jan.................... 150.4 202.6 162.1 Feb................... 152.7 205.6 164.7 Mar.................. 154.5 197.0 163.0 1 4 0 .5 1 4 2 .5 1 4 6 .6 1 3 3 .8 1 3 5 .2 1 3 6 .1 1 Dec. 1968 = 100. 1 1 7 .4 1 1 9 .0 142.6 214.6 118.2 117.7 183.7 131.8 145.0 126.0 119.0 138.7 118.6 123.5 143.4 221.7 120.2 119.8 184.1 132.9 148.0 127.0 120.2 142.1 118.9 124.6 143.4 232.2 127.3 123.8 191.3 137.2 154.7 129.0 121.3 144.2 119.1 125.8 A 60 NATIONAL PRODUCT AND INCOME □ APRIL 1974 GROSS NATIONAL PRODUCT (In billions of dollars) Item 1929 1933 1941 1950 1969 1970 1971 1972 1973 1972 IV Gross national product..................................... 103.1 Final purchases.................................................. 101.4 45.8 3.5 22.3 20.1 Gross private domestic investment................... 16.2 1.4 3 .0 2 .4 .9 5.0 5.6 1.5 4.0 .6 3.8 .5 1.7 - 1 .6 1.8 - 1 .4 III IV 80.6 191.0 579.5 617.6 9.6 30.5 90.8 91.3 42.9 98.1 245.9 263.8 28.1 62.4 242.7 262.6 17.9 13.4 9 .5 2.9 6 .6 3.9 667.2 103.6 278.7 284.9 726.5 117.4 299.9 309.2 804.0 130.8 335.9 337.3 | 54.1 139.0 136.3 153.2 178.3 202.1 47.3 131.1 131.7 147.1 172.3 194.2 27.9 98.5 100.6 104.4 118.2 136.2 9 .2 34.2 36.1 37.9 41.7 48.4 752.6 122.9 310.7 319.0 795.6 132.8 330.3 332.6 189.4 194.5 I 198.2 181.2 189.9 193.7 124.3 130.9 134.1 3.7 4.5 4.0 18.7 19.4 18.6 6.8 6.0 64.3 32.6 32.0 7.8 7.7 64.4 31.2 30.7 4.5 4.3 66.5 42.7 42.2 6.1 4.5 87.8 58.0 57.4 8.0 7.3 43.0 81.2 56.9 56.4 8.2 7.9 .4 2.4 2.0 1.3 5.9 4.6 1.8 13.8 12.0 1.9 55.51 53.6 3.6 62.9 59.3 5.8 .8 —4-6| 66.3 73.5 102.0 96.2 65.5 78.1 - 3 .5 79.7 83.2 8.0 24.8 37.9 210.0' 219.5 234.3 255.0 277.1 13.8 3.1 7.9 76.5 54.0; 53.5, 6.0 5.6| 779.4 132.2' 322.2 325.0 45.3 85.5 59.0 58.4 4.6; 4.4; 1 .0 89.7i 89.7 47.2 86.9 59.6 59.1 4.5 4.4 816.0 132.8 341.6 341.6 825.2 125.6 349.6 350.0 202.0 213.9 197.3 195.9 138.0 141.8 49.5 88.6 59.2 . 58.61 4.7 1 3.2 51.7 90.1 54.0 53.4 18.0 17.3 2.8 97.2 94.4 7.6 12.8 104.5 116.4 97.0 103.6 14*. 1 78.4 74.6 71.6 74.4 13.9 4.3 20.4| 21.6 26.5 30.1 32.1 19.5 111.2 123.3 136.2 150.5 170.5 260.7 268.6 275.3 102.7 705.5 107.3 74.3, 74.2 12 A 30.3 31.2 33.1 158.0 163.0, 168.0 219.0 285.6 106.8 106.8 203.6 141.5 263.7 355.3 725.6| 722.5 745.4 790.7 837.4 1 812.3 829.3 834.3 Net exports of goods and services................... Exports.......................................................... Imports.......................................................... 1.1 7.0 5.9 Government purchases of goods and services.. Federal........................................................... National defense....................................... Other.......................................................... State and local.............................................. 8.5 Gross national product in constant (1958) II 57.2 120.1 278.0 922.5 972.6 1,049.4 1,149.11,281.1 1,191.0 1,237.81,267.5 1,299.8 1,319.4 1 77.2 9.2 37.7 30.3 Structures.............................................. Producers’ durable equipment............. Residential structures............................... Nonfarm................................................ Change in business inventories................... I 1 1 55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.21,289.1 1,199.2 1,242.51,272.0 1,304.5 1337.5 Personal consumption expenditures................. Durable goods.............................................. Nondurable goods........................................ 14.5 10.6 1973 1.3 2 .0 7.2 6.0 16.9 18.4 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. For back data and explanation of series, 9 8 .8\ 96.2 98.1 104.4\ 106.6 74.2 73.0 32.7 33.8 172.2 178.8 841.3 844.6 see the Survey o f Current Business, (generally the July issue) and the Aug. 1966 Supplement to the Survey. NATIONAL INCOME (In billions of dollars) Item 1929 1933 1941 1950 1969 1970 1971 1972 1973* 1973 1972 IV I II III IV* 40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,054.1 978.6 1,015.0 1,038.2 1,067.4 1,095.8 National income................................................ 86.8 Compensation of employees............................. 51.1 29.5 64.8 154.6 566.0 603.9 644.1 707.1 785.2 731.2 757.4 774.9 794.0 814.7 50.4 29.0 23.9 .3 62.1 .7 .5 2 .7 7.8 56.3 61.9 70.3 79.7 93.9 82.5 90.8 92.6 94.7 97.5 .1 .6 .1 .4 2.0 .7 4.0 3.8 27.8 28.4 29.1 32.2 33.7 36.6 39.0 40.7 49.0 44.9 40.2 42.3 41.4 43.3 48.3 44.2 49.4 45.3 50.8 46.7 15.1 9.0 6.2 5.9 3.3 2.6 17.5 11.1 6.4 37.5 24.0 13.5 67.2 50.5 16.7 66.9 50.0 16.9 68.7 51.9 16.8 74.2 54.0 20.2 84.2 57.5 26.8 77.1 55.3 21.8 80.6 56.3 24.3 81.5 57.1 24.4 85.0 57.9 27.1 89.8 58.5 31.3 5.4 2.0 3.5 9.4 22.6 23.9 24.5 24.1 25.1 24.9 24.7 24.6 25.3 25.7 Private....................................................... Government civilian................................. Employer contributions for social in surance .................................................. Other labor income.................................. Proprietors’ income.......................................... Farm .............................................................. Corporate profits and inventory valuation adjustment..................................................... Profits before ta x ......................................... Profits tax liability.................................... 45.5 .3 4.6 4.9 146.8 509.7 542.0 573.8 627.3 691.4 648.7 666.7 682.3 699.3 98.8 104.3 107.9 112.0 112.6 10.5 - 1 .2 15.2 37.7 79.8 69.2 80.1 91.1 109.2 10.0 17.7 42.6 84.9 74.0 85.1 98.0 126.4 106.1 119.6 128.9 129.0 128.1 42.7 55.9 45.9 52.1 51.4 51.6 56.0 71.6 71.5 72.0 55.4 70.5 60.3 66.9 26.0 27.8 26.4 26.9 21.3 28.1 29.0 1.4 1.0 17.8 40.1 34.8 37.4 .5 7.6 .4 10.1 24.9 44.8 39.3 4.4 5.7 8.8 16.0 24.3 20.5 24.7 14.6 .5 - 2 .1 - 2 .5 - 5 .0 - 5 .1 - 4 .8 - 4 .9 4.7 4.1 3.2 2.0 30.5 36.5 42.0 8 .6 Dividends.............................................. 5.8 2.8 2.0 - 1 .6 Inventory valuation adjustment.................. Net interest........................................................ Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also N ote to table above. 717.2 51.9 124.4 405.6 426.9 449.7 493.3 546.0 510.9 525.1 538.7 553.2 566.9 1.9 5.0 19.0 19.6 19.4 20.3 20.8 20.1 20.9 20.5 20.4 21.3 8.3 17.4 85.1 95.5 104.7 113.8 124.6 117.7 120.7 123.1 125.7 129.1 47.6 25.1 22.5 29.3 42.7 33.9 40.0 44.2 43.4 43.0 - 6 .9 - 1 7 .3 - 7 .3 -1 5 .4 -2 1 .1 -1 7 .0 - 1 5 .5 45.2 50.4 46.6 . 47.9 49.4 51.1 53.0 APRIL 1974 □ NATIONAL PRODUCT AND INCOME A 61 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1929 Item 1933 1941 1950 1969 1970 1971 1972 1972 1973* I IV Gross national product..................................... 103.1 Less: Capital consumption allowances......... Indirect business tax and nontax lia bility................................................... Business transfer payments.................. Statistical discrepancy.......................... 7.0 8.2 7.0 .6 .7 7.1 .7 .6 11.3 .5 .4 1 - . 86.8 . 18.3 81.6 87.3 93.8 102.4 109.9 23.3 85.9 93.5 102.4 109.5 117.8 .8 3.8 4.3 4.6 4.0 4.9 1.5 - 6 .1 - 6 .4 - 3 .4 - 1 .5 2.8 1 .2 1.0 1.7 1.2 1.7 .4 IV* 10.5 - 1 .2 .2 .3 15.2 2.8 37.7 6.9 79.8 54.2 69.2 57.7 80.1 64.6 106.9 109.0 110.5 113.1 112.8 4.7 .2 115.6 117.2 118.5 4.8 4.9 5.0 3.2 1.1 3.7 119.9 5.1 3.4 98.8 75.8 91.1 109.2 73.7 92.1 .0 .6 1 .0 2.6 14.3 61.9 Net interest paid by government and consumers.......................................... Dividends.............................................. Business transfer payments................. 1.5 75.1 88.9 98.3 112.6 107.3 2.5 5.8 .6 1.6 2.0 .7 2.2 4.4 .5 7.2 8.8 28.7 24.3 3.8 31.0 24.7 4.0 31.0 25.1 4.3 32.7 26.0 4.6 —.5 37.1 27.8 4.9 33.7 26.4 4.7 96.0 227.6 750.9 808.3 863.5 939.2 1,035.4 976.1 20.7 116.5 116.6 117.5 142.2 152.9 147.4 .8 .9 .4 .6 —.2 978.6 1,015.0 1,038.3 1,067.4 1,095.8 .9 Plus: Government transfer payments........... III 105.1 2.2 40.3 104.2 241.1 766.0 800.5 859.4 941.8 1,054.1 Less: Corporate profits and inventory valu ation adjustment............................... Contributions for social insurance.. . . Excess of wage accruals over disburse ments.................................................. II 55.6 124.5 284.8 930.3 977.1 1,055.5 1,155.3 1,289.1 1,199.2 1,242.5 1,373.0 1,304.5 1,337.5 7.9 Plus: Subsidies less current surplus of gov- 1973 104.3 107.9 112.0 89.3 90.9 93.0 .0 .0 108.8 110.8 113.7 116.9 .0 34.7 26.9 4.8 - .3 112.6 95.0 36.1 27.3 4.9 39.7 29.0 5.1 38.0 28.1 5.0 996.6 1,019.0 1,047.1 1,078.9 Equals: Personal income................................. 85.9 47.0 Less: Personal tax and nontax payments. . . . 2.6 1.5 145.1 149.3 156.0 161.1 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 634.4 691.7 746.0 797.0 882.5. 828.7 851.5 869.7 891.1 917.8 Less: Personal outlays................................... 79.1 77.2 1.5 46.5 45.8 .5 81.7 193.9 596.2 635.5 685.8 747.2 827.8 774.3 80.6 191.0 579.5 617.6 667.2 726.5 804. o; 752.6 20.7 .9 2.4 15.8 16.8 17.7 19.7 22.5 801.5 818.7 840.1 779.4 795.6 816.0 21.2 22.0 23.0 850.8 825.2 23.8 Personal consumption expenditures. Consumer interest payments............ Personal transfer payments to forEquals: Personal saving................................... Disposable personal income in constant (1958) dollars............................................................ 3.3 .3 .2 .2 4.2 - .9 11.0 .9 1.0 1.0 1.0 1.2 1.1 .9 1.0 1.1 1.8 13.1!i 38.2 56.2 60.2 49.7 54.8 54.4 50.0 51.0 51.1 67.1 603.9 604.8 609.5 613.2 .5 150.6 112.2 190.3 249.6 513.6 534.8 554.9 577.9 608.0 S ! 595.1 N ote.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table at top of opposite page. PERSONAL INCOME (In billions of dollars) Feb. Total personal income. 939.2 1,035.4 1974 1973 1973 Mar. Apr. May June July Aug. Sept. Oct. Nov Dec. Jan. Feb.* 997.4 1,003.3 1,011.6 1,018.7 1,036.6 1,035.6 1,047.3 1,058.5 1,068.5 1,079.4 1.089.0 1,087.01,093.6 Wage and salary disbursements. .. 627.8 691.5 667.2 671.1 677.6 682.0 688.2 693.2 698.9 706.0 711.2 717.8 722.6 721.8 725.8 Commodity-producing industries. . 226.0 251.9 242.2 243.5 245.9 248.3 251.7 253.4 254.8 257. 259.5 262.5 264.1 261.0 262.2 M anufacturing o n ly .................. Distributive industries................ Service industries....................... Government................................ 175.9 196.8 189.6 190.6 192.9 194.7 197.0 197.9 198.7 200.8 202.5 204.6 205.1 203.0 203.0 172.5 111. 151.5 165.1 159.3 160.6 162.2 163.2 164.5 165.3 167.1 168.7 169.6 170.8 171 127.7 129.4 130.8 132.5 132.9 134.1 135.9 136.8 138.1 116.1 129.0 124.1 124.9 126.4 126. 134.2 145.4 141.6 142.2 143.1 143.7 144.4 145.1 146.2 147.0 149.2 150.4 151.3 152.2 153.0 Other labor income. 40.7 44.9 43.3 43.6 43.9 44.2 44.5 44.8 45.3 45 J 46.2 46.7 47.1 47.5 47.9 Proprietors’ income.............. Business and professional. Farm .................................. 74.2 54.0 20.2 84.2 57.5 26. 80.6 56.3 24.3 81.0 56.4 24.6 81.0 56. 24.2 81.5 57.1 24.4 81.9 57.3 24.6 83.7 57, 25.9 85.1 58.0 27.1 86.4 58.1 28.3 88.4 58.5 29.9 90.3 58.7 31.6 91.0 58.6 32.4 88.2 58.6 29.6 5 1 .7 Rental income................. 24.1 25.1 24. 24.6 24.3 24.6 24.9 25.0 25.3 25.5 25.6 25.7 25.7 25, 25.8 Dividends........................ 26.0 27.8 26.9 27.0 27.3 27.3 27.4 27.6 28.2 28.3 28.5 28.7 29. 29.5 29.4 78.0 87.5 82.6 83.4 84.5 85.7 86.5 87.8 89.0 90.3 91.5 92.6 94.0 95.3 96.4 Personal interest income. Transfer payments.......... 103.0 117.5 113.8 114.5 115.3 115.9 116.0 116.9 119.0 120.2 121.1 121.9 123.0 125.9 127.6 Less: Personal contributions for social insurance....................................... Nonagricultural income. Agricultural income 34.7 43.1 41.9 911.5 1,000.5 965.3 27.7 34.9 32.1 42.0 42.4 42.5 42.8 43.4 43.6 43.9 44.0 44.3 44.3 47.0 47.1 970.9 979.5 986.4 994.2 1,001.8 1,013.1 1,031.8 1,030.0 1,039.0 1,047.5 1,048.1 1,055.4 35.2 33.8 32.2 32.4 32.4 36.7 38.6 40.4 41.5 38.9 38.2 32.0 N ote.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also N ote to table at top of opposite page. 58.8 28.9 A 62 FLOW OF FUNDS □ APRIL 1974 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1971 Transaction category, or sector 1968 1969 1971 1970 1972 1973 HI 1972 H2 HI 1973 H2 HI H2 Funds raised, by type and sector 1 Total funds raised by nonfinancial sectors................. 2 E x clu d in g e q u itie s ................................................. 94.6 95.9 3 U.S. Government....................................................... 4 Public debt securities.............................................. 5 Budget agency issues.............................................. 13.4 - 3 .6 10.3 - 1 .3 3.1 - 2 .4 6 All other nonfinancial sectors..................................... 7 Corporate equities.................................................. 8 D e b t in s tr u m e n ts .............................................. 9 10 11 12 13 14 15 16 17 18 19 20 21 Debt capital instruments....................................... State and local government securities................ Corporate and foreign b o nds........................... Mortgages............................................................ Home mortgages .............................................. Other residential.............................................. Commercial...................................................... Farm ................................................................ Other private credit................................................ 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 91.4 88.0 2.5 .7 1.8 3 4 5 6 7 8 12.8 12.9 - .1 25.5 26.0 - .5 17.3 13.9 3.4 9.7 22.7 8.3 24.2 1.5 - 1 .6 28.4 27.8 .5 12.4 10.5 1.9 22.2 17.2 4.9 17.0 15.8 1.2 95.0 3.4 91.6 84.7 121.2 148.8 173.5 112.0 130.4 132.8 165.1 180.4 166.7 5.0 6.1 5.5 10.9 12.6 10.4 4.9 11.7 10.0 9.5 79.8 109.5 138.8 168.0 101.1 117.8 122.3 155.6 175.4 160.6 50.6 9.5 14.0 27.1 50.6 9.9 13.0 27.7 83.2 16.6 19.7 46.8 92.4 11.9 13.2 67.3 92.8 8.9 11.8 72.2 79.5 17.9 22.3 39.3 15.1 3 .4 6 .4 2 .2 57.7 11.3 20.6 25.7 15.7 4 .7 5 .3 1.9 12.8 5 .8 5 .3 1.8 22.1 6.4 26.0 8.8 10.0 2 .0 39.7 10.3 14.8 2 .6 39.0 13.0 15.9 4 .2 20.6 8 .5 8 .5 1.7 41.0 15.3 10.4 3.3 12.0 By borrowing sector................................................ D e b t in s tr u m e n ts .............................................. Foreign................................................................ State and local governments............................. Households......................................................... Nonfinancial business........................................ Farm ................................................................ Nonfarm noncorporate.................................... Corporate ......................................................... 81.2 82.6 2.9 9.8 29.6 40.2 95.0 91.6 2.9 10.7 32.2 45.9 C o rp o ra te e q u itie s ............................................. Foreign................................................................ Corporate business............................................. Totals including equities Foreign................................................................ Nonfinancial business........................................ Corporate........................................................ Memo: U.S. Govt, cash balance......................... Totals net of changes in U.S. Govt, cash balances Total funds raised...................................................... By U.S. Government............................................ 1 2 81.2 - 1 .4 82.6 32.0 13.1 10.0 1.6 7.2 Open-market paper............................................ Other................................................................... 97.5 146.7 166.1 183.2 134.7 158.7 145.2 187.3 197.4 169.1 92.6 135.0 156.1 177.7 123.8 146.1 134.7 177.8 192.4 163.1 6.0 3.8 5.9 26.3 46.4 9.3 21.8 11.2 19.2 - . 9 - 1 .6 7.0 6.6 75.2 21.7 41.3 5.1 22.9 8.9 2.5 - 1 . 0 8.7 8.5 86.9 15.4 17.2 54.3 87.3 12.0 14.4 60.9 97.6 11.9 12.0 73.7 31.5 9.1 11.5 2 .3 35.6 9.1 13.5 2 .7 43.7 11.5 16.0 2.5 30.9 13.5 13.6 - .8 4.6 35.0 58.0 14.5 29.3 15.8 22.5 - . 3 - 2 .8 5.0 9.0 91.7 6.3 10.6 74.9 93.9 11.5 12.9 69.5 83.7 54.4 25.2 - 3 .4 7.5 66.7 28.2 20.6 8.4 9.5 41.4 14.1 15.1 4.3 36 .7 11.9 16.8 4.1 9 10 11 12 13 14 15 16 17 18 19 20 21 3 .2 7.4 35.4 3 .2 5 .3 33.9 4.1 8 .7 35.7 4 .9 10.4 44.2 7.6 12.6 61.1 4 .0 9 .3 34.6 4 .2 8.1 36.8 4.4 9 .5 37.0 5.3 11.6 51.2 7.3 13.7 64.5 22 23 24 25 26 27 8 .0 28 11.5 29 57. 7 30 - 1 .4 .2 - 1 .5 3.4 .5 2.9 4.9 .1 4.8 11.7 * 11.7 10.0 - .4 10.4 5.5 -.1 5.7 10.9 .4 10.5 12.6 - .3 12.9 10.4 - .2 10.7 9.5 - .6 10.1 5.0 - .4 5.4 6.1 31 . 1 32 6.0 33 3.1 38.7 30.3 - 1 .1 3.3 48.8 38.3 .4 3.0 47.3 38.8 2.8 5.7 60.2 47.4 3.2 3.4 6.7 69.9 87.0 54.6 66.8 .5 - 1 .6 5.7 58.4 45.1 - .2 5.8 61.9 49.7 6.6 3.2 61.6 47.7 - 3 .0 3.7 78.3 61.3 4.0 2.7 10.7 91.0 83.2 63.7 69.9 3.6 - 6 .7 34 35 36 37 95.7 14.5 91.0 - 4 .0 94.7 143.5 165.6 184.8 134.9 152.1 148.1 183.3 193.8 175.9 9.2 10.0 22.3 16.8 11.3 22.9 21.7 15.4 18.1 13.4 38 39 2 .8 5 .6 31.8 84.7 121.2 148.8 173.5 112.0 130.4 132.8 165.1 180.4 166.7 79.8 109.5 138.8 168.0 101.1 117.8 122.3 155.6 175.4 160.6 5.3 3.4 2.6 6.9 6.1 4.3 11.1 3.0 5.7 3.8 11.9 12.7 6.3 11.4 8.8 17.9 16.1 11.4 17.0 12.3 69.4 30.0 72.4 46.6 56.2 38.3 63.2 70.9 70.5 22.9 42.5 48.5 59.5 81.3 47.9 49.0 50.9 68.2 85.6 77.2 Private domestic net investment and borrowing in credit markets Total, households and business 1 T o ta l c a p ita l o u tla y ...................................... 207.6 226.7 224.2 252.5 291.1 328.0 246.3 258.7 279.9 302.3 323.8 332.3 2 Capital consumption 2........................................... 140.4 154.3 166.0 179.0 193.4 209.5 175.8 182.2 190.3 196.6 205.6 213.5 3 Net physical investment......................................... 67.2 72.4 58.2 73.5 97.7 118.5 70.5 76.6 89.7 105.7 118.2 118.8 1 2 3 81.0 70.2 98.5 133.1 157.9 88.4 108.5 117.7 148.8 163.4 152.6 - 8 .6 -1 2 .0 -2 5 .0 - 3 5 .4 -3 9 .4 -1 7 .9 -3 2 .0 - 2 8 .0 -4 3 .1 -4 5 .2 -3 3 .8 4 5 97.9 108.9 108.0 116.6 133.3 150.6 115.8 117.3 127.4 139.3 145.6 155.5 63.2 69.5 74.6 80.3 87.6 94.1 78.8 81.7 86.2 88.9 92.7 95.6 34.7 39.4 33.5 36.3 45.8 56.4 37.0 35.5 41.2 50.4 52.9 60.0 6 7 8 40.2 45.9 42.5 48.5 59.5 81.3 47.9 49.0 50.9 68.2 85.6 77.2 5.4 6.0 - 1 .5 5.7 10.5 12.9 10.7 10. 1 2.9 4.8 11.7 10.4 - 4 . 0 - 9 . 4 -1 3 .8 -2 3 .9 -2 4 .1 -3 0 .6 - 2 1 .4 - 2 6 .4 -2 0 .4 - 2 7 .9 -3 8 . 1 - 2 3 .2 9 10 11 4 5 Net funds raised..................................................... Excess net investment 3.......................................... Total business 6 T o ta l c a p ita l o u tl a y s ........................................ 7 Capital consumption.............................................. 8 Net physical investment......................................... 9 10 11 Net debt funds raised............................................ Corporate equity issues.......................................... Excess net investment 3.......................................... Corporate business 12 T o ta l c a p ita l o u tl a y s ........................................ 13 Capital consumption.............................................. 14 Net physical investment......................................... 68.3 - 1 .1 75.0 45.1 29.9 83.7 49.8 33.9 84.0 53.6 30.4 86.7 100.7 113.7 57.7 62.8 67.6 29.1 37.8 46.1 86.5 56.7 29.8 87.0 58.7 28.3 96.0 105.4 108.5 118.8 12 61.8 63.8 66.5 68.7 13 34.1 41.5 42.0 50. 1 14 15 16 17 Net debt funds raised............................................ 31.8 35.4 33.9 35.7 44.2 61.1 34.6 36.8 37.0 51.2 64.5 57.7 5.4 6.0 Corporate equity issues.......................................... - 1 .5 4.8 11.7 10.4 5.7 10.5 12.9 10.7 10.1 2.9 Excess net investment 3.......................................... - . 4 - 4 .4 - 8 .4 -1 8 .3 - 1 6 .8 -2 0 .7 -1 5 .3 - 2 1 .4 -1 3 .5 -1 9 .8 -2 7 .9 -1 3 .5 Households 18 T o ta l c a p ita l o u tl a y s ........................................ 109.7 117.8 116.2 135.9 157.8 177.5 130.4 141.4 152.6 163.0 178.2 176.8 19 Capital consumption.............................................. 77.2 84.8 91.4 98.7 105.9 115.4 97.0 100.4 104.1 107.7 112.9 118.0 20 Net physical investment......................................... 32.5 33.0 24.7 37.2 51.9 62.1 33.5 41.0 48.5 55.3 65.3 58.8 18 19 20 72.4 69.4 - 7 .1 -1 0 .6 21 22 21 22 Net funds raised..................................................... Excess net investment 3.......................................... 29.6 2.9 32.2 .8 1 Capital outlays are totals for residential and nonresidential fixed capital, net change in inventories, and consumer durables, except outlays by financial business. 2 Capital consumption includes amounts for consumer durables and excludes financial business capital consumption. 3 Excess of net investment over net funds raised. N ote.—Full statements for sectors and transaction types are available on a quarterly basis and annually for flows and for amounts outstanding. Requests for these statements should be addressed to the Flow of Funds Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C., 20551. 22.9 38.3 63.2 1.8 -1 .1 -1 1 .3 70.9 - 8 .9 30.0 46.6 3.5 - 5 .6 56.2 70.5 - 7 .6 -1 5 .2 15 16 17 Funds raised by type and sector. Credit flows included here are the net amounts raised by households, nonfinancial business, governments, and foreigners. All funds raised by financial sectors are excluded. U.S. Government budget issues (line 5) are loan participation certificates issued by CCC, Export-Import Bank, FNMA, and GNMA, together with security issues by FHA, Export-Import Bank, and TVA. Issues by Federally sponsored credit agencies are excluded as borrowing by financial institu tions. Such issues are on p. A-63, line 11. Corporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open-market paper is commercial paper issued by nonfinancial corporations plus bankers’ acceptances. APRIL 1974 □ FLOW OF FUNDS A 63 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1972 1971 Transaction category, or sector 1 Total funds advanced in credit markets to nonfinancial sectors............................................. By public agencies and foreign 2 Total net advances...................................................... 3 U.S. Government securities................................... 4 Residential mortgages............................................ 5 FHLB advances to S&L’s ..................................... 6 Other loans and securities..................................... By agency— 7 U.S. Government................................................... 8 Sponsored credit agencies..................................... 9 Monetary authorities.............................................. 10 Foreign.................................................................... 11 Agency borrowing not included in line 1................. Private domestic funds advanced 12 Total net advances...................................................... 13 U.S. Government securities................................... 14 State and local obligations..................................... 15 Corporate and foreign bonds................................ 16 Residential mortgages............................................ 17 Other mortgages and loans................................... 18 Less: FHLB advances............................................ 19 20 21 22 23 P riv a te fin a n c ia l in te r m e d ia tio n Credit market funds advanced by private financial institutions............................................................ 1968 1969 1970 1971 1972 1973 HI H2 HI 1973 H2 HI H2 95.9 88.0 92.6 135.0 156.1 177.7 123.8 146.1 134.7 177.8 192.4 163.1 1 12.2 3.4 2.8 .9 5.1 15.8 .9 4.6 4.0 6.3 28.0 15.7 5.7 1.3 5.2 41.3 33.4 5.7 - 2 .7 4.9 16.9 7.3 5.2 * 4.3 32.7 38.6 10.4 32.9 4.2 7.5 7.2 - 5 .5 7.1 7.6 44.0 19.7 34.0 12.7 7.1 6.2 .2 - 2 .4 2.7 3.2 22.9 - .6 10.2 6.6 6.7 2 3 4 5 6 4.9 3.2 3.7 .3 3.5 2.9 9.0 4.2 - .3 8.8 2.8 9.9 5.0 10.3 8.2 3.2 2.8 8.8 26.4 4.3 2.3 6.0 .2 8.4 6.2 1.7 4.3 20.0 - 1 . 4 9.3 8.4 1.6 27.3 19.1 .9 2.2 7.0 9.3 25.5 7.7 .3 3.1 18.7 21.4 12.0 6.7 11.5 - 8 .3 17.6 20.7 7 8 9 10 11 87.2 13.3 9.5 13.8 15.5 35.9 .9 80.9 4.6 9.9 12.5 15.7 42.2 4.0 72.8 98.0 145.4 164.2 86.1 109.9 122.4 168.6 167.5 160.8 5.4 - 3 .5 16.3 18.5 - 9 . 2 2.1 7.1 25.3 13.3 23.8 11.3 16.6 11.9 8.9 17.9 15.4 12.0 11.9 6.3 11.5 20.0 19.5 13.2 11.8 22.1 16.8 14.2 12.1 10.3 13.3 12.8 29.1 44.6 44.4 24.8 33.4 38.4 50.8 50.5 38.3 24.6 33.7 59.5 87.7 25.0 42.3 48.3 71.0 95.0 80.4 * 1.3 - 2 .7 .2 - 2 .4 7.2 - 5 .5 2.5 7.8 6.6 12 13 14 15 16 17 18 75.3 54.9 74.9 111.4 150.2 159.1 112.2 110.6 130.5 170.1 186.2 132.1 19 20 21 22 23 75.3 54.9 74.9 111.4 150.2 159.1 112.2 110.6 130.5 170.1 186.2 132.1 85.2 35.2 24.3 14.3 3.1 1.5 7.5 4.5 4.5 - 4 .1 6.2 10.6 7.4 5.0 42.5 21.4 4.9 7.8 8.4 82.4 101.3 48.9 49.1 17.8 21.7 21.0 14.2 Commercial banking.............................................. Savings institutions................................................ Insurance and pension funds................................. Other finance.......................................................... 38.7 15.6 14.0 7.0 24 Sources o f funds .......................................................... 25 Private domestic deposits...................................... 26 Credit market borrowing....................................... 45.9 8.5 2.6 19.1 63.2 - .4 90.8 9.2 27 28 29 30 31 21.0 2.6 - .2 11.4 7.2 33.3 12.1 9.3 - 8 .5 * 2.9 10.4 13.1 13.5 4.5 11.3 - 3 .2 2.2 9.6 2.7 32 Direct lending in credit markets............................... 33 U.S. Government securities................................... 34 State and local obligations..................................... 35 Corporate and foreign bonds................................ 36 Commercial paper.................................................. 37 Other....................................................................... 20.3 8.0 - .2 4.7 5.8 2.1 45.0 16.8 8.7 7.4 10.2 2.0 38 Deposits and currency................................................ Time and savings accounts.................................... 39 40 Large negotiable CD’S ....................................... 41 Other at commercial banks............................... 42 At savings institutions........................................ 5.4 48.3 33.9 - 2 .3 3.5 -1 3 .7 3.4 17.5 8.0 12.9 66.6 56.1 15.0 24.2 16.9 94.2 102.2 81.2 85.7 7.7 8.7 32.9 31.0 40.6 46.0 43 44 45 Money..................................................................... Demand deposits................................................ Currency.............................................................. 14.5 12.1 2.4 7.7 4.8 2.8 10.5 7.1 3.5 13.0 9.6 3.4 46 Total of credit market instr., deposits, and currency. 68.7 50.5 64.2 47 48 49 12.7 86.4 2.9 18.0 30.2 30.6 10.8 67.9 102.8 113.7 103.3 9.1 1.8 23.2 13.5 90.0 117.7 124.4 87.1 93.0 111.7 123.8 126.5 122.4 18.4 31.2 30.1 14.6 7.9 22. 1 14.0 96.9 130.3 100.7 106.6 100.9 111.2 82.1 7.3 20.1 26.3 11.6 15.3 16.7 - 2 .2 Other sources.......................................................... Foreign funds...................................................... Treasury balances............................................... Insurance and pension reserves......................... Other, n et............................................................ P riv a te d o m e s tic n o n fin a n cia l in v e sto rs Public support rate (in per cent)........................... Private financial intermediation (in per cent)........ Total foreign funds................................................ 18.2 14.5 12.3 9.9 14.1 2.0 4.3 2.5 5.4 35.1 16.9 17.3 5.7 50.6 41.5 14.1 5.3 - 2 .4 - 4 . 2 - 8 .3 - 1 3 .0 -. 1 - 1 .1 10.1 8.2 - .6 - 4 .4 1.4 1.3 69.7 48.7 16.0 15.8 53.2 45.4 12.5 1.2 48.0 37.5 15.7 9.4 57.2 48.4 14.1 10.6 86.8 107.7 28.8 2.6 73.9 15.9 97.9 16.4 32.2 43.5 1.9 5.7 - 7 .2 5.1 .7 - 1 .0 - .8 11.3 19.0 7.7 2.2 15.1 19.8 20.8 .8 5.3 11.5 3.2 16.2 5.5 - 3 .6 8.4 5.9 15.2 8.3 - 3 .5 - 3 .3 2.6 .9 7.7 4.5 6.0 6.7 2.3 - .4 97.8 20.2 15.4 4.1 2.1 4.9 3.7 •6 16.5 12.1 4.4 33.8 19.6 1.2 - .2 8.7 4.4 -2 3 .5 - 2 2 .4 - 2 .7 8.6 - 7 .3 .3 90.6 110.6 76.9 92.6 18.9 3.4 29.6 44.0 28.4 45.3 13.7 17.9 9.9 15.1 3.8 2.8 69.2 21.4 26.9 14.5 97.9 104.8 24.0 34.4 68.9 23.2 24 25 26 48.2 4.7 5.1 14.1 24.3 47.1 5.2 - 1 .4 16.7 26.5 40.0 6.1 - .6 21.3 13.2 27 28 29 30 31 22.5 11.5 3.4 5.2 .8 1.7 15.7 13.0 .3 —. 6 .4 2.7 52.0 26.3 2.1 .4 17.1 6.1 32 33 34 35 36 37 77.9 103.3 101.3 110.8 69.8 88.8 82.6 99.1 12.0 2.1 15.3 27.2 21.9 38.9 23.2 34.0 35.9 47.8 44.1 37.9 70.4 38 54.7 39 10.5 40 25.2 41 19.0 42 11.8 5.7 6.0 15.7 43 14.2 44 1.5 45 8.1 4.1 3.9 14.5 9.1 5.5 18.7 15.3 3.4 46 47 48 49 Corporate equities not included above 1 Total net issues........................................................... 2 Mutual fund shares................................................ 3 Other equities......................................................... 4 Acquisitions by financial institutions....................... 5 Other net purchases................................................... 6.3 13.0 5.1 9.5 9.5 14.7 12.0 1.2 - . 6 - 1 .0 2.6 .3 5.8 4.8 - .7 4.7 7.3 12.7 6.9 13.5 12.6 9.7 23.4 10.8 12.2 11.4 19.2 15.6 - 5 .8 - 2 .7 - 1 .9 - 4 .6 - 3 .6 - 3 .4 -1 0 .4 Notes Line 1. Line 2 of p. A-62. 2. Sum of lines 3-6 or 7-10. 6. Includes farm and commercial mortgages. 11. Credit market funds raised by Federally sponsored credit agencies. Included below in lines 13 and 33. Includes all GNMA-guaranteed security issues backed by mortgage pools. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum of lines 27, 32, 39, and 44. 17. Includes farm and commercial mortgages. 25. Lines 39 + 44. 26. Excludes equity issues and investment company shares. Includes line 18. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, and liabilities of foreign banking agencies to foreign af filiates. 5.8 16.3 12.4 11.5 2.1 - . 4 - 1 .7 - .8 7.4 14.2 13.3 12.0 15.0 17.6 13.6 12.3 1.3 - 5 .1 - 2 .1 - 6 .6 6.8 - .3 7.1 7.1 - .3 1 2 3 4 5 29. Demand deposits at commercial banks. 30. Excludes net investment of these reserves in corporate equities. 31. Mainly retained earnings and net miscellaneous liabilities. 32. Line 12 less line 19 plus line 26. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes mortgages. 39+44. See line 25. 45. Mainly an offset to line 9. 46. Lines 32 plus 38 or line 12 less line 27 plus line 45. 47. Line 2/line 1. 48. Line 19/line 12. 49. Lines 10 plus 28. Corporate equities Line 1 and 3. Includes issues by financial institutions. A 64 U.S. BALANCE OF PAYMENTS □ APRIL 1974 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) Line 1971 Credits+ , debits — 1972 1973* 1973 1972 IV III II' lr IV* Summary—Seasonally adjusted 1 2 3 Merchandise trade balance 1.................................................... Exports............................................................................... 4 5 Travel and transportation, net................................................. 6 7 8 9 Other U.S. investments abroad........................................ 1,358 -2,698 -6 ,9 1 2 688 -1 ,7 4 5 -337 612 -945 42,768 48,769 70,255 13,213 15,229 16,672 18,143 20.211 -45,466 -55,681 -69,567 -14,958 -16,174 -17,009 -17,531 -18,853 -2,918 -2,288 -3,558 -2,8 5 3 -2,171 -2 ,3 1 2 -8 6 4 -7 3 0 -825 -608 -7 3 0 -703 7,972 7,863 9,723 2,232 2,330 2,133 9,456 10.433 13,974 2,991 3,177 3,248 3,443 3,492 1,088 4,576 875 1,006 -4 ,9 2 7 -6 ,0 6 2 -8 ,8 2 7 -1 ,6 3 4 -1 ,8 5 3 -2 ,2 0 3 -541 -476 -7 5 -5 2 5 2,333 2,927 3,479 4,070 1,182 1,300 -2 ,3 2 8 -2 ,4 4 3 10 739 851 972 237 232 238 221 280 11 807 -4 ,6 1 0 6,900 -8 7 0 184 601 2,149 3,965 -1,9 1 3 12 13 Balance on goods, services, and remittances................................... 14 U.S. Government grants (excluding military)......................... 15 -1 ,5 5 3 -1 ,5 7 0 -745 -6 ,1 8 0 -429 -397 -389 -4 0 4 -7 2 4 4,987 -1 ,2 9 9 -213 212 1,745 3,241 -2 ,0 4 5 -2 ,1 7 4 -1 ,9 4 7 -4 5 2 -345 -652 -499 -4 5 0 -2 ,7 9 0 -8,3 5 3 -3,041 -1,751 -558 -4 4 0 1,246 2,791 -2 ,1 1 7 -1 ,7 1 4 -2 ,8 9 4 289 225 137 -627 26 -671 111 -583 174 -5 7 2 -1 ,0 6 9 * 4 -467 238 1,136 -4,401 -152 -357 -4 ,9 4 3 -3 ,4 0 4 -4 ,8 5 5 -115 2,068 160 -966 -6 1 4 -791 2,269 4,093 4,335 -862 -1 ,1 2 0 -5 9 6 216 492 -276 15 224 781 8 -771 -2 ,0 2 5 160 273 -4 0 51 1,768 1,745 -4 4 2 -1 1 0 106 74 484 -303 -9 4 6 534 -126 496 -238 -2 3 223 205 1,666 -1,7 3 1 -478 -1 ,4 0 7 507 753 -204 -5 1 2 664 1,187 247 -4 9 5 -4 8 8 161 -668 2,549 16 U.S. Government capital flows excluding nonscheduled 17 18 Nonscheduled repayments of U.S. Government assets.......... U.S. Government nonliquid liabilities to other than foreign 19 20 21 22 23 24 25 Long-term private capital flows, n et....................................... U.S. direct investments abroad........................................ Foreign direct investments in the United States............. Foreign securities.............................................................. U.S. securities other than Treasury issues....................... Other, reported by U.S. banks........................................ Other, reported by U.S. nonbanking concerns............... 26 Balance on current account and long-term capital 4........................ -9 ,5 5 0 -9,843 27 28 29 30 Nonliquid short-term private capital flows, net..................... Claims reported by U.S. banks........................................ Claims reported by U.S. nonbanking concerns.............. Liabilities reported by U.S. nonbanking concerns......... -2 ,3 4 7 -1 ,8 0 2 -5 3 0 -1 5 -1 ,6 3 7 -4 ,2 1 0 -1 ,4 9 5 -3 ,9 5 3 -735 -315 478 173 31 32 717 Allocations of Special Drawing Rights (SDR’s).................. 710 Errors and omissions, n et........................................................ -10,784 -3 ,1 1 2 -4 ,7 9 3 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 477 -1 ,0 9 7 -2 7 5 -6 ,5 4 9 -1 ,6 1 7 1,498 -1 ,1 2 6 -7,788 2,503 3,542 -1 ,0 9 7 -1 ,2 3 4 -1 ,9 3 3 -566 -742 -1 ,1 0 0 -531 -492 -833 -6,691 4,776 4,436 -6,9 0 8 3,862 2,863 682 104 373 -465 1,200 810 2,367 -131 -7 7 -5 4 2,498 1,995 181 322 -3 ,9 2 7 -2 ,0 5 0 -1 ,3 5 7 -693 -1 ,8 7 7 -1 ,8 9 7 11 9 1,972 869 939 -7 0 1,103 709 31 363 632 -323 -303 -2 0 955 851 -5 0 154 3,826 -4 2 9 -3 7 9 -5 0 4,255 3,200 381 674 -5 ,2 8 6 355 2,130 2,700 9,097 -798 -1 ,6 7 6 -2 ,1 8 4 1,118 117 1,202 259 11 -3 5 4 -475 -1 6 7 -4 3 167 -4 5 2 -1 4 7 209 -111 220 17 -1 3 -1 5 9 233 -3 3 -177 82 -1 6 233 -1 3 8 -1 3 -1 5 4,200 2,558 949 716 833 521 487 4,521 ( 6) ( 6) (6) ( 6) ( 6) (6) 548 ( 6) ( 6) ( 6) (6) (6) ( 6) 27,615 9,720 4,434 -551 399 341 189 U.S. official reserve assets, net................................................. Gold................................................................................... SDR’s ................................................................................ Convertible currencies...................................................... Gold tranche position in IM F ......................................... 2,348 866 -249 381 1,350 32 547 -703 35 153 3,153 3,192 498 For notes see end o f table. -1 ,4 8 4 -10,476 1,645 Liquid liabilities to foreign official agencies........................... Other readily marketable liabilities to foreign official agen cies 5........................................................................................ Nonliquid liabilities to foreign official reserve agencies re ported by U.S. Govt.............................................................. Memoranda: Transfers under military grant programs (excluded from lines 2, 4, and 14)................................................................. Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)........................... Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)...................... 177 -1 ,4 9 0 -3 ,8 9 8 214 46 -1 ,0 6 5 217 -953 -2 4 2 -4 7 0 299 130 -3,851 Official reserve transactions balance................................................ -29,753 -10,340 Financed by changes in: -886 -9 8 2 -1 ,7 6 5 -1 ,4 2 6 -859 -1 ,8 0 4 -1 ,4 1 3 -2 5 0 -11 -1 2 127 -1 50 -7 ,7 8 9 Net liquidity balance......................................................................... -21,965 -13,882 Liquid private capital flows, net.............................................. Liquid claims..................................................................... Reported by U.S. banks........................................... Reported by U.S. nonbanking concerns................. Liquid liabilities............................................................... To foreign commercial b anks................................... To international and regional organizations........... Toother foreigners.................................................... 1,214 -1 ,5 5 6 9 APRIL 1974 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 65 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1971 Credits - f , debits 1972 1973* 1972 1973 IV Balances excluding allocations of SDR’s—Seasonally adjusted -22,682 -14,592 -30,470 -11,050 Net liquidity balance......................... Official reserve transactions balance. -7,7 8 9 -5 ,2 8 6 -4 ,0 2 8 -1,661 -6 ,5 4 9 -10,476 -1 ,6 1 7 355 1,498 2,130 - 1 , 126 2,700 Balances not seasonally adjusted Balance on goods and services................................... Balance on goods, services, and remittances............ Balance on current account....................................... Balance on current account and long-term capital 4 Balances including allocations of SDR’s: Net liquidity........................................................ Official reserve transactions»............................. 807 -745 -2 ,7 9 0 -9 ,5 5 0 -4 ,6 1 0 -6 ,1 8 0 -8,353 -9,843 6,900 4,987 3,041 1,214 168 -263 -698 343 807 436 62 -8 5 0 781 384 -301 -776 356 -6 2 -516 825 4,957 4,230 3,795 2,015 -21,965 -29,753 -13,882 -10,340 -7,7 8 9 -5 ,2 8 6 -3 ,1 9 7 -1 ,5 0 3 -6 ,1 9 7 -9 ,9 9 5 -2 ,0 3 3 769 602 940 -161 3,000 Balances excluding allocations of SDR’s: Net liquidity........................................................ Official reserve transactions............................... -22,682 -30,470 -14,592 -11,050 -7,7 8 9 -5 ,2 8 6 -3 ,1 9 7 -1 ,5 0 3 -6 ,1 9 7 -9 ,9 9 5 -2 ,0 3 3 769 602 940 - 161 3,000 1 Adjusted to balance of payments basis; excludes transfers under military grants, exports under U.S. military agency sales contracts and imports of U.S. military agencies. 2 Includes fees and royalties from U.S. direct investments abroad or from foreign direct investments in the United States. 3 Equal to net exports of goods and services in national income and product accounts of the United States. 4 Includes some short-term U.S. Govt, assets. 5 Includes changes in long-term liabilities reported by banks in the United States and in investments by foreign official agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations. 6 Not available. N ote.—D ata are from U.S. Department of Commerce, Bureau of Eco nomic Analysis. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 1972 Month: Jan ... Feb.. Mar.. A pr.. May. June. July.. Aug.. Sept.. O ct.. Nov.. D ec.. 3,601 3,695 3,790 3,631 3,746 3,672 3,573 3,667 4,487 2,669 3,196 3,881 4.074 3,824 3,869 3,820 3,882 3,971 4.074 4,197 4,176 4,316 4,473 4,558 4,955 5,071 5,309 5,492 5,557 5,726 5,860 6,044 6,414 6,584 6,871 6,954 Quarter I. I I .... I I I ... IV ... 11,086 11,049 11,727 9,746 11,767 11,673 12,447 13,347 Year3.. 43,549 49,208 1973 1971 1972 2 130 160 -143 -161 -365 -259 -247 308 -8 0 0 -2 6 0 -288 r —361 —649 —647 -5 9 6 -6 0 4 -4 9 7 -491 -5 3 0 -4 3 6 -421 -675 -4 4 4 —289 -4 1 2 -102 136 -143 -4 0 39 54 792 615 243 870 1973 r 3,599 3,564 3,628 3,774 3,908 4,037 3,832 3,913 4,179 3,469 3,456 4,169 r4,436 4,473 4,515 4,417 4,486 4,468 4,565 4,726 4,612 4,738 5,148 5,002 5,244 5,482 5,411 5,356 5,700 5,765 5,821 5,991 5,621 5,969 6,628 6,084 15,334 16,775 18,318 20,408 10,792 11,719 11,924 11,094 13,403 13,370 13,903 14,888 16,137 16,821 17,434 18,680 294 -6 7 0 -197 -1 ,3 4 8 -1 ,6 5 7 -1 ,6 9 7 -1 ,4 5 6 -1 ,5 4 0 -803 -4 6 884 1,728 70,799 45,563 55,555 69,121 -2 ,0 1 4 -6 ,3 4 7 1,678 7,111 7,606 1 Exports of domestic and foreign merchandise; excludes Dept, of Defense shipments of grant-aid military equipment and supplies under Mutual Security Program. 2 General imports including imports for immediate consumption plus entries into bonded warehouses. Trade balance 6,467 7,392 1974 644 213 3 Sum of unadjusted figures. N ote.—Bureau of the Census data. Details may not add to totals be cause of rounding. A 66 U.S. GOLD TRANSACTIONS □ APRIL 1974 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales [—] or net acquisitions; in millions of dollars valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) 1973 1963 Area and country 1965 1964 1966 1968 1967 1969 1970 1971 1972 I Western Europe: -8 2 Canada 329 -2 80 -3 0 -879 -5 0 -835 1 -6 -3 5 -4 9 16 -4 7 200 11 -2 9 -1 3 -8 8 -1 ,2 9 9 -659 -980 -669 969 -2 0 4 -796 200 150 50 -3 9 -3 7 -1 -1 -2 5 -2 8 -2 3 -1 -399 T otal......................... Asia: j apan Lebanon . M alay sia........................... Philippines ..................... Saudi Arabia Singapore......................... Other ............................... Total All other . . . ... -3 0 72 Total foreien countries -2 5 * -2 5 2 -5 0 51 -5 0 -2 5 -175 -9 -6 11 -4 0 -2 9 -80 -5 56 17 -41 9 -6 5 -5 4 -131 -5 -1 0 -4 -5 6 -11 -21 -4 2 -1 11 -9 42 54 10 -11 25 -1 3 -3 6 -14 -1 4 -2 2 -9 5 -3 4 9 -5 0 -8 1 -7 5 -2 4 -8 6 -44 -3 6 6 -1 6 -2 2 3—166 3-6 8 * 20 -6 3 -7 -3 6 -1 ,3 2 2 5-225 -392 -3 6 -1 ,5 4 7 -1 * -119 40 -1 -4 -3 5 -1 0 -2 2 -9 1 -3 0 39 -3 -2 1 3 -3 8 -3 -8 1 -6 -608 -1,031 -1 ,1 1 8 957 -631 -845 -3 -3 10 -156 -2 2 -5 4 4 967 6-787 -867 -5 4 7 177 22 -431 -1 ,0 0 9 -1,121 1 Includes purchase from Denmark of $25 million. 2 Includes purchase from Kuwait of $25 million. 3 Includes sales to Algeria of $150 million in 1967 and $50 million in 1968. 4 Includes IMF gold sales to and purchases from the United States, U.S. payment of increases in its gold subscription to IMF, gold deposits by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The first withdrawal ($17 million) was made in June 1968 and the last with drawal ($144 million) was made in Feb. 1972. IMF sold to the United States a total of $800 million of gold ($200 million in 1956, and $300 million in 1959 and in 1960) with the right of IV -1 1 0 -473 32 -392 . -5 2 -209 -1 9 -129 -11 Inti Monetary Fund4........... Grand total -2 -8 5 325 500 41 -7 6 25 29 -2 5 -1 3 12 .............. -5 8 600 -601 III 4 -2 -6 0 ............................... Latin American republics: Argentina ......................... Brazil ........................... Colombia . . . Venezuela. .• O th e r ............................... -2 5 -2 -8 0 -3 5 -180 -5 0 150 -130 T otal........................... -100 -8 3 -884 -5 5 -4 0 -405 -225 -1 200 -6 0 -3 2 -81 618 -518 II repurchase; proceeds from these sales invested by IMF in U.S. Treasury securities. IMF repurchased $400 million in Sept. 1970 and the remaining $400 million in Feb. 1972. 5 Payment to the IMF of $259 million increase in U.S. gold subscription less gold deposits by the IMF. 6 Includes the U.S. payment of $385 million increase in its gold sub scription to the IMF and gold sold by the IMF to the United States in mitigation of U.S. sales to other countries making gold payments to the IMF. The country data include U.S. gold sales to various countries in connection with the IMF quota payments. Such U.S. sales to countries and resales to the United States by the IMF totaled $548 million each. NOTES TO TABLE 5 ON OPPOSITE PAGE: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in IM F operations. Does not include transactions in gold relating to gold deposit or gold investment (see Table 6). 2 Positive figures represent purchases from the IMF of currencies of other members for equivalent amounts of dollars; negative figures repre sent repurchase of dollars, including dollars derived from charges on purchases and from other net dollar income of the IMF. The United States has a commitment to repurchase within 3 to 5 years, but only to the extent that the holdings of dollars of the IMF exceed 75 per cent of the U.S. quota. Purchases of dollars by other countries reduce the U.S. commitment to repurchase by an equivalent amount. 3 Includes dollars obtained by countries other than the United States from sales of gold to the IMF. 4 Represents the U.S. gold tranche position in the IMF (the U.S. quota minus the holdings of dollars of the IMF), which is the amount that the United States could purchase in foreign currencies automatically if needed. Under appropriate conditions, the United States could pur chase additional amounts equal to its quota. 5 Includes $30 million of Special Drawing Rights. 6 Represents amount payable in dollars to the IMF to maintain the value of IMF holdings of U.S. dollars. N ote.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota was increased to $4,125 million in 1959, to $5,160 million in Feb. 1966, to $6,700 million in Dec. 1970, and revalued to $7,274 million in May 1972 and $8,083 million in Oct. 1973 as a result of changes in par value of the U.S. dollar. Under the Articles of Agreement subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. APRIL 1974 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 67 4. U.S. RESERVE ASSETS (In millions of dollars) Gold stock1 Total2 Treasury Con vertible foreign curren cies 19,359 18,753 17,220 16,843 16,672 17,804 16,947 16,057 15,596 15,471 17,767 16,889 15,978 15,513 15,388 116 99 212 432 1,555 1 ,690 1,064 1,035 769 1965. . . 15,450 1966. . . 14,882 1967. . . 14,830 1968... 15,710 1969. . . 716,964 6 13,806 13,235 12,065 10,892 11,859 613,733 13,159 11 ,982 10,367 10,367 781 1,321 2,345 3,528 72,781 6 863 3?6 420 1,290 2,324 197 0 ... 14,487 1971 . . . 812,167 19729. . 13,151 14,378 1973.... 11,072 10,206 10,487 11,652 10,732 10,132 10,410 11,567 629 8276 241 8 1,935 585 465 552 End oi year Total 1 960... 1961. .. 1 962... 1963. .. 1964. . . Reserve position in IM F 3 Gold stock1 SDR’s4 851 1,100 1,958 2,166 1 Includes (a) gold sold to the United States by the IM F with the right of repurchase, and (b) gold deposited by the IMF to mitigate the impact on the U.S. gold stock of foreign purchases for the purpose of making gold subscriptions to the IMF under quota increases. For corresponding liabilities, see Table 6. 2 Includes gold in Exchange Stabilization Fund. 3 The United States has the right to purchase foreign currencies equiva lent to its reserve position in the IMF automatically if needed. Under ap propriate conditions the United States could purchase additional amounts equal to the U.S. quota. See Table 5. 4 Includes allocations by the IMF of Special Drawing Rights as follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDRs. 5 For holdings of F.R. Banks only, see pp. A-12. 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 IMF from June 1965 through Jan. 1966, this gold subscription was included in the U.S. gold stock and excluded from the reserve position. Reserve position in IM F 3 SDR’s4 Treasury Con vertible foreign curren cies5 1973 Mar. .. 12,931 10,487 10,410 Apr__ 12,904 10,487 10,410 May... 12,916 10,487 10,410 June. .. 12,914 10,487 10,410 July. . . 12,918 10,487 10,410 Aug---12,923 10,487 10,410 Sept---12,927 10,487 10,410 Oct.. . . 1014,367 1011,652 1011,567 Nov.... 14,373 11,652 11,567 Dec.. . 14,378 11,652 11,567 8 8 16 8 8 8 8 8 8 8 478 460 464 470 474 479 483 10541 547 552 1,958 1,949 1,949 1,949 1,949 1,949 1,949 102,166 2,166 2,166 1974 Jan .. . . F eb.. . . Mar__ 59 68 9 688 757 761 2,166 2,166 2,166 End of month Total Total2 11,652 11,652 11,652 14,565 14,643 14,588 11,567 11,567 11,567 7 Includes gain of $67 million resulting from revaluation of the German mark in Oct. 1969, of which $13 million represents gain on mark holdings at time of revaluation. 8 Includes $28 million increase in dollar value of foreign currencies revalued to reflect market exchange rates as of Dec. 31, 1971. 9 Total reserve assets include an increase of $1,016 million resulting from change in par value of the U.S. dollar on May 8, 1972; of which, total gold stock is $828 million (Treasury gold stock $822 million), reserve position in IMF $33 million, and SDR’s $155 million. 10 Total reserve assets include an increase of $1,436 million resulting from change in par value of the U.S. dollar on Oct. 18, 1973; of which, total gold stock is $1,165 million (Treas. gold stock $1,157 million) reserve position in IMF $54 million, and SDR’s $217 million. N ote.—See Table 23 for gold held under earmark at F.R. Banks for foreign and international accounts. Gold under earmark is not included in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) IMF holdings of dollars (end of period) Transactions affecting IMF holdings of dollars (during period) Transactions by other countries with IMF U.S. transactions with IMF Period Payments of subscrip tions in dollars Net gold sales by IM F 1 1946—1957. 1958—1963. 1964—1966. 1967—1969. 2,063 1,031 776 600 150 1970. 1971 . 1972. 1973. 1,155 5712 1973—Mar.. Apr.. M ay. June. July . Aug.. Sept.. Oct... Nov.. Dec.. 1974—Jan... Feb.. Mar.. For notes see opposite page. 6 541 6 754 22 Transac tions in foreign curren cies 2 1,640 -8 4 150 1,362 200 IMF net income in dollars 6 754 -133 Total change Amount Per cent of U.S. quota 827 2,740 6 268 775 2,315 1 ,744 -1,998 775 3,090 4,834 2,836 28 75 94 55 1,975 1,035 326 2,324 741 40 1,929 1,350 694 721 4,765 6,115 6,810 7,531 71 91 94 93 1,935 585 465 552 -5 18 -4 -6 -4 -5 -4 750 -5 -5 6,796 6,814 6,810 6,804 6,800 6,795 6,791 7,541 7,536 7,531 93 94 94 94 93 93 93 93 93 93 478 460 464 470 474 479 483 541 547 552 -137 -6 9 -4 7,394 7,325 7,321 91 91 91 688 757 761 Purchases of dollars 3 Re purchases -4 5 60 45 59 -2 ,6 7 0 -1 ,6 6 6 -723 -2 ,2 6 3 25 -2 8 -4 7 -3 3 -8 5 4 -2 4 -5 18 -4 -6 -4 -5 -4 -4 -5 -5 -4 -4 -4 -6 5 U.S. reserve position in IMF (end of period) 4 dollars A 68 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 6. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID LIABILITIES TO ALL OTHER FOREIGNERS (In millions o f dollars) Liabilities to foreign countries Official institutions2 End of period Total Liquid liabili ties to IMF arising from gold trans actions i Total Liquid liabili ties to non mone Short tary Market term inti, able liabili and re ties re gional U.S. ported Treas. organi by bonds zations 8 banks and notes 3>7 in U.S. Liquid liabilities to other foreigners Liquid Nonmar Short term Market ketable able con liabili vertible U.S. ties re U.S. ported Treas. bonds Treas. by and bonds banks notes3 and in notes U.S. Nonmar ketable noncon vertible U.S. Treas. bonds and notes4 Liquid liabili Other ties readily to com market mercial able banks liabili abroad 6 ties5 Total 1962 24,268 800 12,914 11,963 751 200 5,346 3,013 2,565 448 2,195 1963 9, J26,433 \26,394 800 800 14,459 14,425 12.467 12.467 1,217 1,183 703 703 63 63 5.817 5.817 3,397 3,387 3.046 3.046 351 341 1,960 1,965 1964 9, /29,313 \ 29,364 800 800 15,790 15.786 13,224 13,220 1.125 1.125 1.079 1.079 204 204 158 158 7,271 7,303 3,730 3,753 3,354 3,377 376 376 1.722 1.722 29,569 834 15,826 13,066 1,105 1,201 334 7,419 4,059 3,587 472 1,431 1966 9 J31,145 \31,020 1,011 1,011 14,841 14,896 12,484 12,539 860 860 256 256 328 328 913 913 10,116 9,936 4.271 4.272 3.743 3.744 528 528 906 905 1967 9, (35,819 \ 35,667 1.033 1.033 18,201 18,194 14,034 14,027 908 711 711 741 741 1.807 1.807 11,209 11,085 4,685 4,678 4,127 4,120 558 558 691 677 1968 9, (38,687 \38,473 1.030 1.030 17,407 17,340 11.318 11.318 529 462 701 701 2.518 2.518 2.341 2.341 14.472 14.472 5,053 4,909 4.444 4.444 609 465 725 722 1969 9, io(45,755 \45,914 1.019 *015,975 15,998 1.019 11,054 11,077 346 346 10 555 102,515 555 2,515 1.505 1.505 23,638 23,645 4,464 4,589 3,939 4,064 525 525 659 663 1965. 1970—Dec. 9, 1971—Dec. u \ 46,960 (47,009 566 566 23.786 23.775 19.333 19.333 306 295 429 429 3.023 3.023 695 695 17,137 17,169 4,676 4,604 4,029 4,039 647 565 844 846 /67,681 \67,808 544 544 51,209 50,651 39,679 39.018 1.955 1.955 6,060 6,093 3,371 3,441 144 144 10,262 10,949 4,138 4,141 3,691 3,694 447 447 1,528 1,523 1972—Dec.. , 82,886 61,524 39,998 5,236 12,108 3,639 543 14,665 5,070 4,645 425 1,627 1973—Feb... M ar... Apr.. . May. . J u n e .. July.. Aug.. , Sept.. Oct... Nov.r D ec.. , 87,856 1290,886 1390,582 68,475 1271,335 70,752 6,377 12,110 6,917 1212,128 6.934 12.245 9 2 ,0 8 7 70,919 70.700 71,026 70,520 69.775 69.701 67,398 66.775 12.245 12.245 12.319 12.319 12.319 12.319 12.319 3.627 3,617 3,631 3.628 3,805 3,705 3,555 3,355 3.233 3.234 3.210 948 1,745 1,989 1,996 2,004 2,006 2,019 2,015 2,009 1,849 1,661 12,679 12,769 12,851 92,188 93,217 92,578 92,072 93,173 92,581 92,572 45,413 46,928 45,953 46,116 45,712 46,136 45,721 45,172 45,211 43,789 43,899 14,356 15,311 15,076 15,026 15,953 17,256 17,643 5,082 5,144 5,348 5,361 5,463 5,363 5,450 5,652 5,699 5,917 6,151 4,710 4,768 4,949 4,977 5,080 4,989 5,115 5,305 5,325 5,507 5,721 372 376 399 384 383 374 335 347 374 410 430 1,620 1,638 1,631 1,749 1,669 1,517 1,532 1,619 1,820 2,010 2,003 1974—Jan*., Feb.*. 90,076 92,005 63,848 64,111 41,547 42.018 5,214 5,177 12.321 12.322 3.210 3.210 1,556 1,384 18,019 19,642 6,284 6,456 5,835 6.046 449 410 1,925 1,796 6 .9 3 4 6.934 6.934 6,906 6,914 6,929 6,207 5,686 1 Includes (a) liability on gold deposited by the IMF to mitigate the impact on the U.S. gold stock of foreign purchases for gold subscriptions to the IMF under quota increases, and (b) U.S. Treasury obligations at cost value and funds awaiting investment obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. 2 Includes BIS and European Fund. 3 Derived by applying reported transactions to benchmark data; breakdown of transactions by type of holder estimated 1962-63. 4 Excludes notes issued to foreign official nonreserve agencies. 5 Includes long-term liabilities reported by banks in the United States and debt securities of U.S. Federally-sponsored agencies and U.S. cor porations. 6 Includes short-term liabilities payable in dollars to commercial banks abroad and short-term liabilities payable in foreign currencies to commer cial banks abroad and to “other foreigners.” 7 Includes marketable U.S. Treasury bonds and notes held by commer cial banks abroad. 8 Principally the International Bank for Reconstruction and Develop ment and the Inter-American and Asian Development Banks. 9 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on first line are comparable with those shown for the preceding date; figures on second line are comparable with those shown for the following date. 1° Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969 as follows: liquid, $17 million, and other, $84 million. 12.245 14,058 11 Data on the second line differ from those on first line because cer tain accounts previously classified as “official institutions” are included with “ banks” ; a number of reporting banks are included in the series for the first time; and U.S. Treasury securities payable in foreign currencies issued to official institutions of foreign countries have been increased in value to reflect market exchange rates as of Dec. 31, 1971. 12 Includes $15 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. 1 3 Includes $147 million increase in dollar value of foreign currency liabilities to official institutions of foreign countries revalued to reflect market exchange rates as follows: short-term liabilities, $15 million; non marketable convertible U.S. Treasury bonds and notes, $113 million; and nonmarketable nonconvertible U.S. Treasury bonds and notes, $19 million. N ote.—Based on Treasury Dept, data and on data reported to the Treasury Dept, by banks and brokers in the United States. Data correspond generally to statistics following in this section, except for the exclusion of nonmarketable, nonconvertible U.S. Treasury notes issued to foreign official nonreserve agencies, the inclusion of investments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations, and minor rounding differences. Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury letters of credit and non-negotiable, non-interest-bearing special U.S. notes held by other international and regional organizations. APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 69 7. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) Total foreign countries End of period Western Europe * 10,321 8,070 8,062 4 7,074 4 7,074 13,620 13,615 30,010 30,134 18,194 /17,407 \17,340 1969 3..................................................................................... J 4 15,975 \ 4 15,998 /23,786 1970 3..................................................................................... \23,775 /51,209 150,651 1968 3..................................................................................... Latin American republics Canada Asia 1,310 1,867 1,866 1,624 1,624 2,951 2,951 3,980 3,980 1,582 1,865 1,865 1,888 1,911 1,681 1,681 1,414 1,429 4,428 5,043 4,997 4,552 4,552 4,713 4,708 14,519 13,823 Other countries 2 Africa 250 259 248 546 546 407 407 415 415 303 303 302 291 291 414 413 871 870 1972......................................................................................... 61,524 34,197 4,279 1,731 17,577 777 2,963 1973—Feb............................................................................... Mar.............................................................................. Apr.............................................................................. May............................................................................. June............................................................................. July.............................................................................. Aug.............................................................................. Sept.............................................................................. Oct............................................................................... Nov.............................................................................. Dec.............................................................................. 68,475 6 71,335 7 70,752 70,919 70,700 71,026 70,520 69,775 69,701 67,398 66,775 40,773 6 45,229 7 45,608 46,646 46,967 47,140 47,260 47,099 47,515 46,002 45,697 4,290 4,221 4,157 4,104 4,111 4,043 3,836 3,759 3,851 3,820 3,838 1,895 1,750 1,915 1,903 1,998 2,073 2,014 1,860 1,937 2,232 2,544 17,907 16,568 15,420 14,429 13,734 13,692 13,637 13,289 12,601 11,474 10,884 809 823 839 940 992 928 738 769 735 785 788 2,801 2,744 2,813 2,897 2,898 3,150 3,035 2,999 3,062 3,085 3,024 1974—Jan.*............................................................................ Feb.*........................................................................... 63,848 64,111 43.262 42,411 3,930 4,254 2,446 2,743 10,479 10,878 838 1,000 2,893 2,825 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 9 to Table 6. 4 Includes $101 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. 5 Data on second line differ from those on the first line because certain accounts previously classified as “Official institutions” are included in “ Banks” ; a number of reporting banks are included in the series for the first time; and U.S. Treasury liabilities payable in foreign currencies to official institutions of foreign countries have been increased in value by $110 million to reflect market exchange rates as of Dec. 31, 1971. 6 Includes $15 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. 7 Includes $147 million increase in dollar value of foreign currency liabilities revalued to reflect market exchange rates. N ote.—D ata represent short- and long-term liabilities to the official institutions of foreign countries, as reported by banks in the United States; foreign official holdings of marketable and nonmarketable U.S. Treasury securities with an original maturity of more than 1 year, except for non marketable notes issued to foreign official nonreserve agencies; and in vestments by foreign official reserve agencies in debt securities of U.S. Federally-sponsored agencies and U.S. corporations. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international and regional organizations6 To all foreigners Payable in dollars End of period Total 1969............ U.S. Treasury bills and Demand Time 2 certifi cates3 Other short term liab.4 Deposits Total i Payable in foreign cur rencies Demand U.S. Treasury bills and Time2 certifi cates Other short term liab.4 83 159 159 192 192 202 244 211 211 210 210 326 223 381 381 896 892 800 513 548 584 572 644 607 611 660 577 622 597 1,418 1,426 1,429 1,579 1,569 1,488 1,487 1,552 1,767 1,962 1,955 133 114 119 141 155 206 173 80 70 73 101 144 134 112 119 134 116 118 100 93 97 86 287 260 221 148 169 116 61 62 173 373 296 854 918 976 1,172 1,110 1,049 1,129 1,311 1,430 1,420 1,471 607 768 1,855 1,696 95 77 94 70 286 232 1,380 1,317 1971 8.......... 197 2 20,460 15,785 15,795 10,399 6,459 8,288 6,959 5,924 5,961 5,209 4,217 5,631 5,015 14,123 14,123 33,025 33,025 31,850 7,336 5,519 5,514 6,385 11,335 14,456 429 368 368 386 392 496 1973—F eb... Mar.. Apr.. May. June. Ju ly .. Aug.. Sept.. Oct... Nov.. D ec.. 64,220 65,891 65,182 66,731 66,717 67,924 67,398 67,056 68,256 68,514 69,218 63,707 65,343 64,598 66,159 66,073 67,317 66,788 66,395 67,679 67,891 68,622 7,786 7,607 8,119 8,365 9,114 8,989 8,436 8,754 9,108 9,849 11,399 5,597 5,613 5,655 5,715 5,830 5,879 6,137 6,130 6,772 6,884 6,995 36,522 37,947 36,440 35,965 34,931 34,556 34,257 33,702 32,869 31,977 31,866 13,801 14,175 14,383 16,114 16,198 17,893 17,958 17,809 18,930 19,182 18,362 1974—Jan.*. Feb.*, 67,257 69,402 66,649 68,634 10,823 11,478 7,146 7,065 29,543 30,274 19,138 19,817 Total 62 69 69 73 73 86 39,770 41,351 41,393 55,018 55,036 60,225 For notes see the following page. Deposits 613 820 820 1,372 1,367 1,413 40,199 /41,719 141,761 /55,404 \55,428 60,722 19707........... IMF gold invest ment^ 800 400 400 400 400 A 70 INTL. CAPITAL TRANSACTIONS OF THE U.S. d APRIL 1974 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) Total to official, banks and other foreigners To official institutions io Payable in dollars End of period Payable in Other foreign short currencies term liab. 4 Demand Time2 U.S. Treasury bills and certifi cates 3 19718.......... 1972............ 38,786 J40,499 \40,541 J53,632 \ 53,661 59,308 20,397 15,716 15,726 10,326 6,386 8,203 6,876 5,765 5,802 5,017 4,025 5,429 3,971 13.511 13.511 32.415 32.415 31,523 7,113 5,138 5,133 5,489 10,443 13,657 429 368 368 386 392 496 11,077 19.333 19.333 39,679 39.018 39,998 1,930 1.652 1.652 1,620 1,327 1,589 2,942 2.554 2.554 2,504 2,039 2,880 3,844 13.367 13.367 32.311 32.311 31,453 2,159 1,612 1,612 3,086 3.177 3,905 202 148 148 158 165 171 1973—Feb.. Mar.. A pr.. M ay. June. July.. Aug.. Sept.. Oct.. . Nov.. D ec.. 62,802 64,465 (53,753 65,151 65,148 66,436 65,912 65,503 66,489 66,552 67,263 7,653 7,493 8,000 8,224 8,959 8,782 8,258 8,674 9,038 9,776 11,297 5,452 5,479 5,543 5.597 5,696 5,762 6,019 6,030 6,678 6,787 6,909 36,235 37,687 36,219 35,817 34,762 34,440 34,196 33,640 32,696 31,604 31,570 12,948 13,257 13,407 14,942 15,088 16,844 16,829 16,498 17.500 17,762 16,891 513 548 584 572 644 607 611 660 577 622 597 45,413 46,928 45,953 46,116 45,712 46,136 45,721 45,172 45,211 43,789 43,899 1,756 1,543 1,714 1,719 1,940 1,934 1,575 1,631 1,810 2,034 2,125 2,841 2,837 2,920 2,949 3,124 3,192 3,355 3,226 3,846 3,802 3,911 36,147 37,620 36,137 35,736 34,684 34,360 34,118 33,554 32,613 31,529 31,491 4,497 4,757 4,996 5,525 5,777 6,461 6,545 6,634 6,815 6,298 6,245 172 172 187 187 187 189 127 127 127 127 127 1974—Jan.*. Feb.* 65,401 67,706 10,728 11,400 7,052 6,996 19,257 30,042 17,758 18.500 607 768 41,547 42.018 2,378 2,412 3,712 3,700 29,152 29,917 6.177 5,861 127 127 Total 1969............ 19707......... Deposits Payable in dollars Payable in foreign cur rencies Other short term liab. 4 Total Deposits Demand To banksii U.S. Treasury bills and certifi cates 3 To other foreigners Payable in dollars End of period Total Deposits Demand Time2 U.S. Treasury bills and certifi cates Total 1969....................... t Q7ft7 Other short term liab.4 Deposits Demand Time2 U.S. Treasury bills and certifi cates Total Other short term liab.4 To banks and other foreigners: Payable in foreign cur rencies 1071 8 1972....................... 27,709 (21,166 121,208 (13,953 \ 14,643 19,310 23,419 16,917 16,949 10,034 10,721 14,340 16,756 12,376 12,385 7,047 3,399 4,659 1,999 1,326 1,354 850 320 405 20 14 14 8 8 5 4,644 3,202 3,197 2,130 6,995 9,270 4,064 4,029 4,039 3,691 3,694 4,645 1,711 1,688 1,688 1,660 1,660 1,954 1,935 1,886 1,895 1,663 1,666 2,145 107 131 131 96 96 65 312 325 325 274 271 481 226 220 220 228 228 325 1973—Feb............. Mar............. Apr............. M ay........... June........... July............. Aug............. Sept............. Oct............. Nov............. Dec............. 17,388 17,537 17,800 19,035 19,437 20,300 20,191 20,331 21,278 22,762 23,364 12,337 12,393 12,453 13,673 13,899 14,893 14,593 14,493 15,503 16,761 17,174 4,084 4,145 4,336 4,646 5,054 4,958 4,807 5,071 5,251 5,735 6,941 371 331 312 319 258 321 353 430 473 469 512 5 5 7 8 8 8 10 8 7 8 11 7,877 7,912 7,799 8,701 8,578 9,606 9,423 8,983 9,772 10,549 9,710 4,710 4,767 4,949 4,977 5,081 4,989 5,115 5,305 5,325 5,506 5,721 1,813 1,805 1,951 1,859 1,965 1,890 1,876 1,972 1,977 2,007 2,232 2,240 2,312 2,312 2,329 2,314 2,250 2,311 2,374 2,359 2,517 2,486 83 63 75 73 70 72 68 77 76 67 68 573 588 611 716 732 776 861 881 912 915 936 341 376 398 385 457 418 483 533 449 495 469 1974—Jan.*........... Feb.*.......... 23,854 25,688 17,539 19,001 6,330 6,857 620 521 14 32 10,576 11,592 5,835 6,046 2,020 2,131 2,719 2,775 91 93 1,005 1,047 480 641 1 Data exclude “holdings of dollars” of the IMF. 2 Excludes negotiable time certificates of deposit, which are included in “Other.” 3 Includes nbnmarketable certificates of indebtedness issued to official institutions of foreign countries. 4 Principally bankers’ acceptances, commercial paper, and negotiable time certificates of deposit. See also note 8(a). 5 U.S. Treasury bills and certificates obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. Upon termination of investment, the same quantity of gold was reac quired by the IMF. 6 Principally the International Bank for Reconstruction and Develop ment and the Inter-American Development Bank. Includes difference between cost value and face value of securities in IM F gold investment account. 7 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. 8 Data on second line differ from those on first line because (a) those liabilities of U.S. banks to their foreign branches and those liabilities of U.S. agencies and branches of foreign banks to their head offices and foreign branches, which were previously reported as deposits, are included in “Other short-term liabilities” ; (b) certain accounts previously classified as “Official institutions” are included in “ Banks” ; and (c) a number of reporting banks are included in the series for the first time. 9 Includes $15 million increase in foreign currency liabilities revalued to reflect market exchange rates. lOForeign central banks and foreign central govts, and their agencies, and Bank for International Settlements and European Fund. i i Excludes central banks, which are included in “Official institutions.” N ote.—“Short term” refers to obligations payable on demand or having an original maturity of 1 year or less. For data on long-term liabilities reported by banks, see Table 10. Data exclude the “holdings of dollars” of the International Monetary Fund; these obligations to the IM F consti tute contingent liabilities, since they represent essentially the amount of dollars available for drawings from the IMF by other member countries. Data exclude also U.S. Treasury letters of credit and non-negotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop ment Bank and the International Development Association. APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S, A 71 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) Area and country 1972 Dec. 1973 May Europe: June July 1974 Aug. Sept. Oct. Nov- Dec. Jan.* Feb.* ...................................................... Belgium-Luxembourg.............................. D enm ark................................................. Finland...................................................... France....................................................... Germany.................................................. Greece....................................................... Italy........................................................... Netherlands.............................................. Norway..................................................... Portugal.................................................... Spain......................................................... Sweden...................................................... Switzerland............................................... Turkey...................................................... United Kingdom.................................... Yugoslavia................................................ Other Western Europe i .......................... U.S.S.R................................ .................... Other Eastern Europe............................. 272 1,092 284 163 4,441 5,346 238 1,338 1,468 978 416 256 1,184 2,857 97 5,011 117 1,483 11 81 301 1,373 502 244 5,327 12,161 219 1,171 2,427 1,046 511 325 1,787 3,272 71 5,899 73 2,164 9 66 297 Austria 305 1,376 1,456 489 477 194 165 5,452 5,406 12,003 12,837 219 240 1,072 870 2,029 2,369 1,082 1,049 500 477 282 334 1,951 1,905 3,268 3,310 102 75 6,457 6,317 66 66 2,965 2,360 18 11 74 81 302 1,378 437 153 5,246 12,912 236 1,510 1,945 1,055 472 237 1,871 3,226 115 5,943 57 3,015 17 90 292 1,377 409 145 5,296 13,236 215 1,140 2,022 1,024 459 259 1,835 3,309 72 5,593 58 3,099 16 114 204 1,410 470 135 4,143 14,180 280 1,095 2,534 999 467 284 1,787 3,316 83 6,416 61 3,427 40 96 166 1,462 527 136 3,415 14,227 236 1,224 2,866 980 470 319 1,807 3,081 75 6,482 76 2,926 20 101 161 1,483 659 165 3,483 13,227 389 1,384 2,886 965 534 305 1,885 3,374 102 6,148 86 3,352 22 110 210 1,593 527 178 3,241 12,307 262 1,196 2,522 961 482 264 1,975 3,281 221 6,439 78 3,097 26 92 279 1,660 456 160 2,967 12,357 238 1,119 2,502 962 486 304 1,973 3,510 146 6,184 94 3,009 20 95 Total.................................................. 27,134 38,949 39,383 40,621 40,216 39,970 41,425 40,597 40,722 38,953 38,521 Canada.......................................................... 3,467 3,796 3,328 3,393 3,787 3,721 3,812 3,967 3,862 4,158 4,431 Uruguay.................................................... Venezuela.................................................. Other Latin American republics............. Netherlands Antilles and Surinam......... Other Latin America............................. . 631 540 605 137 210 6 831 167 225 140 1,078 860 86 44 730 503 768 137 219 7 843 192 170 150 968 778 64 270 727 452 770 140 200 10 925 186 180 180 1,055 783 68 649 750 796 920 134 200 7 919 194 190 128 1,067 744 78 408 800 564 732 126 168 7 975 217 177 126 1,079 791 61 403 889 592 700 127 167 7 1,044 204 178 114 941 791 65 463 781 456 745 137 207 7 1,029 231 152 115 1,130 742 70 532 766 806 816 142 221 6 1,132 282 124 112 1,420 769 63 556 914 824 860 157 247 7 1,284 279 135 120 1,468 880 71 361 847 593 819 178 219 7 1,323 281 144 120 1,460 947 70 470 895 1,011 961 174 238 8 1,343 326 154 115 1,636 1,028 61 790 Latin America: Argentina................................... ............... Bahamas 2 ................................................ Brazil........................................................ Chile.......................................................... Colombia................... . *................... Cuba.......................................................... Mexico...................................................... Panam a.................................................... Total.................................................. 5,560 5,798 6,325 6,534 6,226 6,283 6,334 7,215 7,608 7,476 8,741 Asia: China, People’s Rep. of (China Mainland China, Republic of (Taiwan)................... Hong Kong.............................................. India.......................................................... Indonesia.................................................. Israel......................................................... Japan........................................................ K orea........................................................ Philippines................................................ Thailand.................................................... O ther........................................................ 39 675 318 98 108 177 15,843 192 438 171 1,071 44 832 368 145 117 142 9,056 231 575 177 873 41 846 341 110 155 161 8,458 226 544 175 883 38 790 289 141 176 159 8,126 219 545 146 958 43 810 356 103 140 146 8,003 217 541 140 1,139 40 802 349 99 254 173 7,680 213 482 143 1,165 37 779 363 105 169 279 7,061 198 479 163 1,139 40 764 383 71 160 330 6,726 210 497 180 1,138 38 757 372 85 133 327 6,954 195 515 247 1,202 38 735 389 152 186 337 6,418 222 570 336 1,306 39 715 416 183 175 311 7,440 204 604 471 1,196 Total.................................................. 19,131 12,560 11,940 11,588 11,640 11,401 10,771 10,500 10,826 10,690 11,752 Africa: Egypt. ....................................................... Morocco................................................... South Africa............................................. Zaire.......................................................... O ther......................................................... 24 12 115 21 768 67 8 120 45 786 29 11 155 17 904 29 15 169 21 803 41 10 100 27 683 34 11 132 19 765 34 10 103 26 747 63 14 109 24 824 35 11 114 87 808 72 12 101 42 837 72 12 119 30 1,044 Total.................................................. 939 1,025 1,118 1,037 862 961 919 1,034 1,056 1,064 1,277 Other countries: Australia................................................... All other.................................................... 3,027 51 2,961 60 2,985 71 3,202 61 3,124 57 3,106 62 3,169 59 3,183 55 3,131 59 2,986 74 2,917 66 3,077 3,022 3,056 3,263 3,181 3,168 3,228 3,238 3,190 3,059 2,984 Total foreign countries............................... 59,308 65,151 65,148 66,436 65,912 65,503 66,489 66,552 67,263 65,401 67,706 International and regional: International3........................................... Latin American regional......................... Other regional4........................................ 951 307 156 1,132 345 102 1,149 329 89 1,099 309 81 1,125 289 72 1,183 298 70 1,402 299 66 1,610 290 62 1,628 271 57 1,537 256 63 1,404 228 63 Total.................................................. 1,413 1,579 1,569 1,488 1,487 1,552 1,767 1,962 1,955 1,855 1,696 Grand total....................................... 60,722 66,731 66,717 67,924 67,398 67,056 68,256 68,514 69,218 67,257 69,402 For notes see the following page. A 72 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 5 1971 Area and country 1972 1973 Apr. Dec. Apr. 2 11 16 2 9 15 3 9 17 9 12 22 19 6 54 55 62 123 57 78 117 18 42 19 50 17 10 53 70 91 62 83 123 23 50 32 66 17 15 87 92 114 121 76 132 27 58 41 61 22 20 65 75 104 109 86 127 25 64 32 79 26 17 44 76 89 51 77 145 17 51 30 88 18 14 Other Latin America: Bermuda................... British West Indies.. (2) 32 ( 2) 23 ( 2) 36 127 100 178 105 Other Asia: Afghanistan. Bahrain....... Burma......... C am bodia.., Iran............. Iraq............. Jordan.......... 19 21 10 5 59 10 2 17 18 5 2 88 9 2 25 24 2 3 93 10 4 19 23 17 3 114 26 4 9 ( 7) (7) 2 103 ( 7) 5 Other Western Europe: Cyprus....................... Iceland....................... Ireland, Rep. o f........ Other Latin American republics: Bolivia....................................... Costa Rica................................. Dominican Republic................ Ecuador..................................... El Salvador............................... Guatemala................................. Haiti........................................... Honduras................................... Jamaica..................................... Nicaragua.................................. Paraguay................................... Trinidad & Tobago.................. 1972 1971 Area and country 1 Includes Bank for International Settlements and European Fund. 2 Bermuda included with Bahamas through Dec. 1972. 3 Data exclude “holdings of dollars” of the International Monetary Fund but include IM F gold investment until Feb. 1972, when investment was terminated. 1973 Dec. Apr. Dec Apr. Dec. Other Asia—Cont.: Kuwait................................ 20 Laos.................................... 3 Lebanon............................. 46 Malaysia............................. 23 Pakistan.............................. 33 Ryukyu Islands (incl. Okinawa)6 29 Saudi Arabia...................... 79 Singapore........................... 35 Sri Lanka (Ceylon)............ 4 Syria.................................... 4 Vietnam.............................. 159 16 3 60 25 58 53 80 45 6 6 185 39 2 55 54 59 36 3 55 59 93 20 2 51 42 95 344 77 5 4 135 236 53 6 39 98 244 140 13 4 82 Other Africa: Algeria................................ Ethiopia (incl. Eritrea).. . . Ghana................................. Kenya................................. Liberia................................. Libya................................... Nigeria................................ Southern Rhodesia............ Sudan.................................. Tanzania............................. Tunisia................................ Uganda............................... Zambia............................... 23 11 8 9 23 274 46 2 1 6 9 3 13 31 29 11 14 25 296 56 2 5 6 7 10 7 32 57 10 23 30 393 85 2 3 11 10 7 28 51 75 28 19 31 312 140 1 3 16 11 19 37 87 62 18 21 34 ( 7) (7) 2 3 12 4 6 ( 7) All other: New Zealand...................... 23 27 30 34 37 4 Asian, African, and European regional organizations, except BIS and European Fund, which are included in “ Europe.” 5 Represent a partial breakdown of the amounts shown in the “other” categories (except “Other Eastern Europe”). 6 Included in Japan after Apr. 1972. 7 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) End of period Total To inti. and regional Country or area To foreign countries Total Official institu tions Other Banks1 foreign ers Ger many United King dom Other Europe Total Latin America Japan Other Asia All other coun tries 197 0 197 1 1972—Dec. 2 1,703 902 fl,000 \1 ,018 789 446 562 580 914 457 439 439 695 144 93 93 165 257 259 259 53 56 87 87 110 164 165 165 42 52 63 63 26 30 32 32 152 111 136 136 385 3 1 1 137 87 32 32 62 9 10 10 1973—F eb ... Mar.. Apr.. May. June. Ju ly .. Aug.. Sept.. Oct... Nov.. Dec.. 1,276 1,406 1,397 1,379 1,467 1,525 1,530 1,502 1,473 1,469 1,487 613 697 684 688 769 768 775 758 735 753 761 663 709 713 691 697 757 755 744 738 717 726 304 328 329 313 311 311 322 318 312 313 310 258 269 274 274 274 305 305 302 305 287 296 100 112 111 104 113 141 127 123 122 117 121 164 164 164 164 164 164 165 165 165 165 165 59 66 68 68 68 68 68 68 68 67 66 233 234 239 231 233 265 265 263 265 246 245 118 133 128 115 125 145 143 145 140 138 151 1 1 1 1 2 2 2 2 2 2 5 71 96 98 96 94 93 95 84 81 80 78 16 16 16 16 10 19 17 18 18 19 18 1974—Jan.*. Feb.*. 1,498 1,480 801 697 612 311 259 275 267 111 86 165 165 65 58 236 231 140 109 2 2 78 35 11 13 1 Excludes central banks, which are included with “Official institutions.’ 2 Data on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 73 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES (End of period; in millions of dollars) 1973 Feb. Europe: Belgium-Luxembourg..................... Sweden............................................. Apr. Mar. June May 6 135 43 278 79 5 6 135 44 300 79 5 6 135 43 281 85 5 July 6 135 43 280 85 5 6 135 42 275 85 5 1974 Aug. Sept. 6 135 37 236 85 5 7 165 37 247 85 5 Oct. 7 165 37 290 85 5 Dec. Nov. 7 165 38 400 85 5 7 235 34 423 86 5 Jan.* Feb.* 7 235 33 437 91 5 7 260 32 450 91 5 Eastern Europe............................... 6 135 44 276 79 5 T otal......................................... 544 546 569 555 554 547 504 546 588 700 789 808 845 559 561 561 560 560 560 560 560 560 567 567 582 817 1 6 1 6 1 6 1 6 1 6 4 3 8 3 9 3 9 3 11 3 11 3 11 3 11 3 United Kingdom............................. Latin America: Other Latin America.................. T otal......................................... 7 7 7 7 7 7 11 12 12 14 14 14 14 Asia: Japan................................................ Other Asia....................................... 5,421 10 5,961 10 5,978 10 5,978 10 5,977 10 5,977 9 5,949 9 5,950 11 5,950 11 5,143 11 4,552 11 4,066 11 3,718 11 T otal........................................ 5,431 5,971 5,988 5,988 5,988 5,987 5,959 5,961 5,961 5,154 4,563 4,077 3,729 Africa................................................... 183 183 183 183 183 183 183 158 158 158 158 158 157 25 25 25 25 25 25 25 25 25 25 25 25 25 Total foreign countries....................... 6,749 7,293 7,333 7,318 7,317 7,308 7,241 7,261 7,303 6,617 6,116 5,663 5,587 International and regional: International................................... Latin American regional................ 176 26 186 26 176 27 142 27 72 27 1 28 1 45 21 45 6 47 1 47 1 48 20 49 51 49 Total......................................... 202 212 202 169 100 29 46 66 53 48 49 69 100 Grand total.............................. 6,951 7,505 7,535 7,487 7,417 7,337 7,287 7,327 7,356 6,665 6,164 5,732 5,687 Note.—Data represent estimated official and private holdings of marketable U.S. Treasury securities with an original maturity of more than 1 year, and are based on benchmark surveys of holdings and regular monthly reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars End of period Total Total Bel gium Can ada China, Rep. of (Taiwan) 197 0 197 1 197 2 3,563 3 9,657 15,872 2,480 7,829 14,333 32 32 20 2,289 2,640 2.840 20 20 20 1973—Mar. Apr. May June, July. Aug. Sept. Oct.. Nov. Dec. 415,870 416,015 16,012 16,189 16,089 16,015 15,813 15.691 15.692 15,669 14,464 14,459 14,456 14,633 14,533 14,383 14,183 14.233 14.233 14.210 20 20 20 2.840 2.840 2.840 2.840 2.840 2,690 2,490 2.540 2.540 2.540 10 5 2 1974—Jan.. Feb. Mar. 15.671 15.672 15,680 14.210 14.210 14.210 2.540 2.540 2.540 1 Notes issued to the Government of Italy in connection with mili tary purchases in the United States. 2 In addition, nonmarketable U.S. Treasury notes amounting to $125 million equivalent were held by a group of German commercial banks from June 1968 through Nov. 1972. The dollar value of these notes was increased by $10 million in Oct. 1969 and by $18 million as of Dec. 31, 1971. Payable in foreign currencies Ger many Italy Korea Thai land 5,000 11,315 25 22 22 100 100 100 11.471 11.471 11.471 11.670 11.670 11.670 11.670 11.670 11.670 11.670 22 22 22 22 22 22 22 22 22 100 100 100 100 11.670 11.670 11.670 Ger many 2 erland 1,083 3 1,827 1,539 542 612 306 541 1,215 1,233 41,407 41,556 1.556 1.556 1.556 1.631 1.631 1.458 1.459 1.459 153 172 172 172 172 172 172 1,254 1.384 1.384 1.384 1.384 1.458 1.458 1.458 1.459 1.459 Total 1,461' 1,462 1,470 Switz 1.461 1.462 1,470 3 Includes $106 million increase in dollar value of foreign currency obligations revalued to reflect market exchange rates as of Dec. 31, 1971. 4 Includes $15 million increase in Mar. and $145 million increase in Apr. in dollar value of foreign currency obliaations revalued to reflect market exchange rates. A 74 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 1 3 . S H O R T -T E R M C L A IM S O N IN T H E U N IT E D F O R E IG N E R S R E P O R T E D S T A T E S , BY C O U N T R Y BY B A N K S (End o f period. Amounts outstanding; in millions of dollars) 1 1973 1972 1974 Area and country Dec. Europe: A ustria........................................................... Belgium-Luxembourg................................ D en m ark....................................................... F inland.......................................................... F ran ce............................................................ G erm any....................................................... G reece............................................................ Ita ly ................................................................ N etherlands.................................................. N orw av.......................................................... P o rtu g al......................................................... Spain............................................................... May June July Aug. Sept. Oct. Nov. Dec. Jan.* 9 73 69 140 447 356 19 327 115 67 17 360 267 190 6 1,009 13 21 50 69 12 94 69 141 389 399 19 326 109 65 19 387 234 245 9 1,025 12 29 56 73 10 96 56 134 434 349 28 278 101 79 18 272 224 208 7 1,077 12 20 56 84 18 107 67 125 368 281 20 278 155 70 14 251 184 206 6 1,357 10 21 42 83 14 190 52 114 413 313 16 242 144 67 18 183 166 234 6 1,304 10 26 46 97 15 150 50 97 461 366 26 282 132 74 23 183 155 242 8 1,236 8 34 49 87 14 145 53 89 525 392 23 363 172 82 22 189 177 203 16 1,178 19 26 51 72 11 148 48 108 621 311 35 316 133 72 23 222 153 176 10 1,456 10 27 46 59 14 134 50 106 649 342 41 313 139 85 25 208 135 240 16 1,490 9 19 29 64 36 143 60 93 682 381 36 330 146 91 25 180 106 338 9 1,726 15 20 36 65 Feb.* Sw itzerland................................................... T urkey............................................................ United K in g d o m ........................................ Yugoslavia..................................................... Other W estern E urope............................... U.S.S.R........................................................... Other Eastern E u ro p e................................ 8 120 59 118 330 321 29 255 108 69 19 207 164 125 6 997 22 20 41 49 T o tal....................................................... 3,067 3,624 3,710 3,542 3,664 3,654 3,678 3,811 3,985 4,108 4,519 1,914 2,400 2,034 2,168 2,186 1,909 2,210 1,979 1,960 1,880 2,070 Bahamas 1..................................................... B razil.............................................................. C hile............................................................... Colom bia....................................................... C u b a............................................................... M exico........................................................... P an am a.......................................................... P e ru ................................................................ U ruguay......................................................... Venezuela...................................................... Other Latin American republics.............. Netherlands Antilles and Surinam .......... Other Latin A m erica.................................. 379 515 649 52 418 13 1,202 244 145 40 383 388 14 36 408 433 851 40 398 13 1,343 190 147 31 440 383 35 74 408 448 891 43 412 14 1,406 218 169 34 454 380 38 66 431 518 965 36 420 13 1,386 223 180 34 454 373 48 71 442 484 915 50 422 13 1,348 262 176 35 441 394 38 91 455 619 879 40 423 13 1,329 252 178 39 430 409 31 91 469 698 837 80 423 15 1,388 273 208 45 436 431 23 137 485 608 826 125 413 13 1,357 263 204 47 469 465 17 124 498 873 900 151 397 12 1,370 266 178 55 517 490 13 140 520 578 953 136 426 11 1,343 291 186 57 483 542 17 356 538 1,040 958 155 428 11 1,417 297 184 51 510 545 19 462 Latin America: T otal....................................................... 4,476 4,786 4,981 5,153 5,111 5,187 5,464 5,417 5,861 5,900 6,616 Asia: China, People’s Rep. o f (China Mainland) China, Republic o f (T aiw an).................... Hong K ong................................................... In d ia ............................................................... Indonesia....................................................... Israel............................................................... J a p a n .............................................................. K o re a ............................................................. Philippines.................................................... Thailand........................................................ O th e r.............................................................. 1 194 93 14 87 105 4,152 296 149 191 300 5 216 132 19 97 116 5,530 338 139 194 324 3 200 204 21 94 111 5,751 347 144 173 354 7 198 218 18 91 133 5,753 348 134 188 352 6 183 116 17 77 133 5,791 336 129 185 350 7 141 128 19 81 145 5,801 348 121 179 361 22 128 121 14 89 145 5,745 372 105 206 349 36 117 124 16 96 155 6,033 368 118 225 377 31 140 147 16 88 166 6,400 401 181 273 394 24 119 169 16 105 153 6,467 429 189 323 466 19 147 189 15 107 140 6,958 477 182 364 560 T otal....................................................... 5,584 7,110 7,401 7,441 7,321 7,330 7,295 7,664 8,237 8,461 9,158 Africa: Egypt.............................................................. M orocco........................................................ South A frica................................................. Zaire............................................................... O th e r.............................................................. 21 4 143 13 118 25 4 166 13 136 34 4 163 42 145 44 5 150 43 149 41 5 151 49 173 43 11 157 48 146 38 4 150 51 163 40 7 147 61 155 35 5 129 60 159 42 4 133 56 178 40 4 134 67 175 T otal...................................................... 299 343 388 391 419 405 406 410 388 413 420 O ther countries: A ustralia....................................................... All other........................................................ 291 40 232 47 260 46 271 40 230 41 218 36 223 36 251 36 243 43 279 37 268 49 T o tal...................................................... 330 280 305 310 271 254 259 287 286 316 317 Total foreign countries................................... 15,670 18,544 18,820 19,005 18,973 18,739 19,312 19,569 20,716 21,079 23,100 3 2 1 2 1 1 1 1 1 1 1 G rand to ta l.......................................... 15,672 18,546 18,821 19,007 18,974 18,739 19,313 19,570 20,717 21,080 23,101 1 Includes Bermuda through Dec. 1972. N ote .— Short-term cla im s are prin cip ally th e fo llo w in g item s payab le on d em a n d or w ith a con tra ctu a l m atu rity o f n o t m ore than 1 year: loan s m ad e to , and a ccep ta n ces m ad e for, foreign ers; drafts draw n against foreign ers, w h ere c o lle c tio n is bein g m a d e by ban k s and bank ers for their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. 1 4 . S H O R T -T E R M C L A IM S O N F O R E IG N E R S R E P O R T E D IN T H E U N IT E D S T A T E S , BY T Y P E A 75 BY B A N K S (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies Loans to End o f period Total Total Total Official institu tions B anks1 Others Collec tions out stand ing Accept ances made for acct. o f for eigners Other Foreign govt, se Deposits curities, with for coml. and fi eigners nance paper Other 10,802 [13,170 (13,272 fl5,471 [15,672 10,192 12,328 12,377 14,625 14,826 3,051 4,503 3,969 5,674 5,671 119 223 231 163 163 1,720 2,613 2,080 2,975 2,970 1,212 1,667 1,658 2,535 2,538 2,389 2.475 2.475 3,269 3,276 3,985 4,243 4,254 3,204 3,226 766 1,107 1 ,679 2,478 2,653 610 842 895 846 846 352 549 548 441 441 92 119 173 223 223 166 174 174 182 182 1973—Feb.. M ar.. . A pr.. . May. . J u n e .. J u ly ... A u g ... Sept.. . O ct.. .. N o v .. . D e c .. . 18,033 18,383 18,362 18,546 18,821 19,007 18,974 18,739 19,313 19,570 20,717 16.962 17,432 17,544 17,692 17,982 18,144 18,087 17.963 18,453 18,780 20,055 6,449 6,517 6,826 6,933 7,318 7,024 6,973 6,829 7,003 7,090 7,718 162 141 146 163 205 162 176 160 216 252 271 3,669 3,677 3,928 3,813 4,070 3,926 4,029 3,917 3,989 4,084 4,589 2,619 2,698 2,753 2,956 3,043 2,936 2,768 2.752 2.798 2.753 2,859 3,589 3,732 3,815 3,824 3,881 3,871 3,948 4,070 4,099 4.287 4,306 3,302 3.482 3.483 3,623 3,984 3,922 3,716 3,718 3,774 3,788 4,155 3,622 3,700 3,419 3,313 2,800 3,327 3,450 3,345 3,577 3,614 3,876 1,071 951 819 854 839 863 887 777 861 790 662 596 524 460 499 552 561 488 459 510 512 428 313 262 207 237 140 151 151 143 187 131 119 162 165 152 118 147 151 248 175 163 148 115 1974—J a n .* .. F e b .* .. 21,080 23,101 20,277 22,257 7,415 8,118 303 303 4,419 5,016 2,692 2.799 4,388 4.288 4,107 4,553 4,367 5,298 804 844 504 520 162 122 137 202 197 0 1971 2............. 19723............. 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 of foreign banks on their head offices and foreign branches, which were previously reported as “ Loans” , are included in 15. L O N G -T E R M “ Other short-term claims” ; and (b) a number of reporting banks are included in the series for the first time. 3 D ata on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in cover age with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. C L A IM S O N F O R E IG N E R S R E P O R T E D IN T H E U N IT E D S T A T E S BY B A N K S (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of period Total Loans to— Other B anks1 foreign ers Other long term claims Payable in foreign curren cies United K ing dom Other Europe Latin Canada America Japan Other Asia All other countries Total Official institu tions 1970................... 3,075 1971................... 3,667 10*70*2 ................. f4,954 17/Z \5,025 2,698 3,345 4,539 4,550 504 575 833 836 236 315 430 430 1,958 2,455 3,276 3,285 352 300 375 435 25 22 40 40 71 130 145 145 411 593 704 701 312 228 406 406 1,325 1,458 1,996 2,012 115 246 319 348 548 583 881 900 292 429 503 514 1973—Feb , M a r.. .. A pr........ M a y .. . . J u n e .. . . J u ly . . . . Aug........ Sept.. . . O ct........ N o v .. . . D ec........ 5,137 5,288 5,431 5,519 5,604 5,623 5,519 5,385 5,567 5,763 5,856 4,636 4,781 4,935 5,015 5,095 5,114 5,007 4,859 5,011 5,222 5,304 836 883 903 932 978 957 1,002 1,010 1,041 1,127 1,129 477 496 544 545 550 554 514 507 537 554 570 3,323 3,402 3,487 3,538 3,567 3,604 3,491 3,342 3,434 3,541 3,605 449 460 447 455 464 455 466 456 476 463 480 52 47 49 48 45 54 46 70 80 78 72 135 121 122 131 131 128 137 131 130 138 140 763 854 907 923 980 1,029 1,007 975 1,011 1,058 1,098 434 453 477 511 523 517 404 418 491 484 489 1,993 1,985 2,007 2,006 2,002 1,982 1,963 1,921 1,960 2,068 2,072 342 336 337 331 311 310 304 252 258 251 243 930 986 1,030 1,058 1,096 1,122 1,157 1,186 1,203 1,246 1,282 540 552 552 558 561 535 548 501 514 516 533 1974—Jan.*. .. F e b .* ... 5,794 5,867 5,245 5,264 1,115 1,166 558 580 3,572 3,519 470 524 79 79 135 144 1,096 1,158 484 456 2,036 2,057 249 249 1,284 1,293 509 510 1 Excludes central banks, which are included with “ Official institutions.” 2 D ata on the two lines shown for this date differ because of changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. INTL. CAPITAL TRANSACTIONS OF THE U.S. a APRIL 1974 A 76 1 6 . PU R C H A SES AND SA LES BY F O R E IG N E R S O F L O N G -T E R M S E C U R IT IE S , BY T Y P E (In millions of dollars) U.S. corporate securities 2 M arketable U.S Treas. bonds and notes * Foreign bonds Foreign stocks Net pi irchases or sales Period Intl. and regional Total 1971............................... 1972............................... 1973............................... 1,672 3,316 290 Total Official 130 57 -1 6 5 1,542 3,258 455 1,661 3,281 450 N et pur Pur chases or chases sales Pur chases Sales -1 1 9 14,573 - 2 3 19,073 6 18,569 13,158 15,015 13,846 Foreign Sales N et pur Pur chases or chases sales Sales 1,687 1,901 1,471 2,621 2,961 2,454 -9 3 5 - 1 ,0 6 0 -9 8 3 1,385 2,532 1,729 1,439 2,123 1,554 -5 7 409 176 Net pur chases or sales Other 1,415 4,058 4,723 1974—Jan -F e b * ......... -4 7 7 52 -5 2 9 -5 0 9 -2 0 2,920 2,668 252 171 509 -3 3 8 396 413 -1 7 1973—Feb.................... M ar................... A pr.................... M ay................... June July.................... Aug.................... Sept.................... Oct..................... Nov................... D ec.................... 515 554 31 -4 8 -7 1 -7 9 -5 1 40 29 -6 9 1 -5 0 1 -1 2 10 -9 -3 3 -6 9 -7 1 17 20 -1 3 -5 1 527 544 40 -1 5 -1 -9 -6 8 20 42 -686 -5 0 2 579 540 16 * -2 8 8 15 -7 2 2 -5 2 1 -5 2 3 23 -1 5 -1 -9 -3 9 12 27 36 19 1,761 2,220 1,566 1,142 1,087 1,320 1,328 1,174 1,806 1,947 1,364 1,045 1,111 1,040 1,101 899 898 864 963 1,736 1,689 1,384 716 1,109 525 41 188 422 464 212 71 258 -1 9 145 144 117 140 125 101 96 67 97 103 144 144 125 292 150 103 207 157 101 336 305 209 1 19 -1 7 5 -1 0 22 -1 0 6 -6 1 -3 4 -2 3 8 -2 0 2 -6 5 194 211 121 137 123 108 117 115 129 156 159 145 114 112 125 111 107 125 105 131 178 144 49 97 9 12 12 1 -8 10 -2 -2 2 15 1974—Jan .* ................. Feb.*................. -4 3 2 -4 5 20 31 -4 5 2 -7 6 -4 7 2 -3 7 19 -3 9 1,697 1,223 1,455 1,213 242 10 71 100 364 145 -2 9 2 -4 5 209 187 207 205 2 -1 8 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. Also includes issues o f new debt securities 1 7 . N ET PU R C H A SE S O R SA LES sold abroad by U.S. corporations organized to finance direct investments abroad. N ote.—Statistics include transactions o f international and regional organizations. BY F O R E I G N E R S O F U .S . C O R P O R A T E S T O C K S , BY C O U N T R Y (In millions o f dollars) Period P ur chases Sales 1971....................... 1972....................... 1973....................... 11,626 14,361 12,760 10,894 12,173 9,961 Net pur chases or France sales ( —) G er many *731 2,188 2,799 87 372 439 131 -5 1 2 N ether Switzer lands land 219 297 339 United King dom Other Europe Total Europe 168 642 685 -4 9 561 366 71 137 288 627 1,958 2,119 -9 3 -7 8 99 Latin Canada America 37 -3 2 -1 Asia Other, 108 256 577 52 83 5 1974—Jan.-Feb.* 1,714 1,384 330 106 8 89 85 21 55 365 -2 8 -4 1 24 9 1973— Feb............ M ar........... A pr............ M ay.......... Ju n e.......... July........... Aug............ Sept........... Oct............ N ov........... Dec............ 1,282 1,144 868 778 766 881 973 948 1,368 1,481 873 835 793 728 898 632 564 631 734 1,272 1,071 878 446 350 141 -1 2 0 134 316 341 214 95 409 -5 25 35 21 -2 2 67 53 63 6 106 30 5 8 9 -4 3 -2 3 -1 9 1 6 -7 27 9 67 47 -8 -1 4 7 25 60 18 5 54 32 150 148 53 -2 2 52 80 57 54 -3 4 68 -6 4 82 21 -1 4 -3 8 15 28 40 15 68 67 -2 5 42 29 46 3 21 28 34 14 24 21 6 371 288 107 -1 1 6 74 210 245 169 61 343 -1 2 37 25 34 -7 8 19 10 * -2 6 -1 8 -8 -1 1 5 -1 0 -1 6 -2 11 11 27 16 -9 -4 44 21 5 11 55 71 81 21 41 108 34 5 11 5 9 -2 5 -6 -3 4 -1 4 -1 6 1974—Ja n .* ......... Feb.*........ 973 741 799 585 174 156 68 39 4 5 37 52 45 40 27 -5 22 33 202 163 -2 7 * -4 2 1 33 -9 9 1 i Includes international and regional organizations. APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions o f dollars) G er many Total 197 1 197 2 197 3 1974—Jan .-F eb .* -1 74 -1 9 15 336 201 684 1,871 1,924 Nether Switzer United land Kingdom lands -7 8 1973—Fe b M a r.. . . A pr........ M a y .. . . J u n e .. . . July. . . . Aug....... S e p t.. . . O ct........ Nov.. . . Dec........ 270 759 385 161 54 106 123 -2 -2 5 -1 5 1 -1 5 6 45 33 1 6 * 31 2 53 4 9 1974—Jan.*3. .. F e b .* ... 68 -1 4 6 3 1 4 3 2 -4 -3 -5 7 1 2 -2 2 -1 Other Europe Total Europe 612 1,293 1,206 197 135 307 327 357 275 39 315 475 23 162 -2 3 30 -7 65 76 -3 13 -5 -1 46 28 37 46 -3 -9 6 120 -1 9 -1 5 57 14 -1 4 76 60 60 158 94 22 -2 7 10 12 1 7 32 117 44 -1 5 N ote.—Statistics include State and local govt, securities, and securities of U.S. Govt, agencies and corporations. Also includes issues of new Latin Canada America 37 82 49 167 12 149 174 98 215 -2 0 -5 2 94 26 87 124 152 36 * 16 7 7 3 -1 -1 4 -2 1 137 30 19 22 44 Asia Africa Other Intl. and countries regional -2 323 588 -2 1 * 10 39 148 26 -2 2 3 -2 9 1 4 4 1 -1 4 4 1 1 3 16 110 623 199 2 * 1 2 11 1 -2 0 9 -1 8 3 -2 6 -4 2 68 -6 3 59 150 24 -3 9 -1 1 8 -4 8 1 1 -5 -1 0 4 -1 1 9 10 20 -4 9 debt securities sold abroad by U.S. corporations organized to finance di rect investments abroad. 20. 1 9 . N E T P U R C H A S E S O R S A L E S BY F O R E IG N E R S O F F O R E IG N C R E D IT A N D D E B IT L O N G -T E R M F O R E IG N S E C U R IT IE S , BY A R EA B A L A N C E S IN B R O K E R A G E A C C O U N T S (In millions o f dollars) (Amounts outstanding; in millions o f dollars) Period Total Intl. and re gional Total foreign coun tries Eu rope Canada Latin Amer Asia ica Af rica -5 7 -6 6 3 32 29 37 -5 3 * * * -1 1 * * * 1 * 2 * 1 * 14 9 2 3 2 1 * 3 -1 -4 2 1 1971................. 1972.................. 1973................. -9 9 2 -6 5 1 -8 0 7 -3 1 0 -9 0 139 -6 8 2 -5 6 1 -9 4 6 31 492 -1 4 1 -2 7 5 -6 5 1 -5 5 9 -4 6 -6 9 -1 2 0 -3 6 6 -2 9 6 -1 6 8 1974-Jan-Feb* -3 5 4 2 -3 5 6 -1 5 6 -2 1 5 -1 1 28 1973— Feb.. . . M ar___ A p r.. . . M ay. . . J u n e . .. J u ly .... Aug.. .. Sept---Oct........ N o v . .. D e c .. .. 49 116 -1 6 6 2 34 -1 0 5 -6 9 -2 5 -2 4 0 -2 2 5 -5 0 -2 23 16 11 7 3 5 4 4 9 51 51 93 -1 8 2 -9 27 -1 0 8 -7 5 -2 8 -2 4 3 -2 3 4 -1 0 1 -3 24 22 -2 1 10 -1 3 -2 1 -2 8 -2 5 -4 7 -4 5 41 34 -1 9 3 -1 3 6 -9 3 -4 4 8 -1 4 8 -7 8 -1 1 -1 6 29 8 27 -6 -5 6 6 13 - 1 3 -1 3 9 -4 -8 -1 -8 -8 -6 4 - 6 -1 0 4 -3 4 -1 5 1974— Jan. p . .. Feb.*... -2 9 1 -6 3 -4 6 -2 8 7 -6 9 -8 1 -7 6 -2 0 4 -1 1 -2 -9 -1 29 Other coun tries End of period 1970—Dec.............................. 1973—M ar.............................. Credit balances (due to foreigners) Debit balances (due from foreigners) 349 281 511 419 333 311 314 300 320 314 325 312 286 372 379 339 336 405 310 316 290 333 364 243 255 231 N ote.—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 TABLES 21A A N D 2 IB O N FO LLO W IN G PAGES: F or a given m onth, total assets may not equal total liabilities because i Total assets and total liabilities payable in U.S. dollars amounted to some branches do not adjust the parent’s equity in the branch to reflect $22,291 million and $22,609 million, respectively, on Jan. 31, 1974. unrealized paper profits and paper losses caused by changes in exchange rates, which are used to convert foreign currency values into equivalent N ote.—Components may not add to totals due to rounding. dollar values. A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 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 IN UNITED KINGDOM Total all currencies................................ Payable in U.S. d o llars.......................... IN BAHAMAS AND CAYMANS Total, all currencies................................ For notes see p. A-77. Claims on foreigners Parent bank Other Total Other branches of parent bank Other banks N on Offi cial bank for insti tutions eigners 1970—D ec............ 1971—Dec............ 1972—D ec............ 47,363 61,334 80,034 9,740 4,798 4,735 7,248 2,311 2,124 2,491 36,221 2,486 54,752 2,611 73,031 6,887 16,997 11,211 24,550 11,717 36,738 695 11,643 1,167 17,823 1,665 22,910 1,403 1,785 2,268 1973—Jan ............. Feb............ M ar............ A pr............ M ay ........... Ju n e r ........ J u ly ........... A ug............ Sept........... O ct............. N o v .r ........ D ec............ 81,199 87,901 91,646 90,987 92,994 98,756 103,793 105,194 110,673 114,025 120,600 122,499 4,926 4,325 4,296 3,917 4,218 4,955 5,404 5,158 4,853 4,847 5,895 4,883 2,327 1,565 1,988 1,672 1,926 2,333 2,505 2,291 1,917 1,832 2,915 1,887 2,600 2,760 2,308 2,244 2,292 2,622 2,899 2,868 2,936 3,016 2,980 2,997 11,945 12,272 12,458 12,787 13,490 13,528 15,316 15,667 17,194 18,118 18,866 19,133 1,621 1,747 1,965 2,081 2,004 1,900 2,035 2,108 2,242 2,336 2,208 2,502 23,643 24,846 25,679 26,247 27,337 28,501 29,678 30,809 32,274 32,999 34,170 34,986 2,267 2,509 2,980 2,979 3,199 3,594 3,806 4,039 4,797 4,714 5,648 4,761 74,006 81,067 84,370 84,091 85,577 90,207 94,583 95,997 101,022 104,464 109,057 112,855 36,797 42,203 44,268 42,976 42,746 46,277 47,555 47,414 49,312 51,011 53,813 56,233 1974—Jan............. 123,791 4,605 1,535 3,070 114,597 19,456 56,977 2,732 35,431 4,589 1970—D ec............ 1971—D ec............ 1972—D ec............ 34,619 40,182 54,058 9,452 4,541 4,473 7,233 2,305 2,102 2,219 24,642 2,236 35,064 2,371 48,768 4,213 13,265 6,659 18,006 8,083 26,907 362 6,802 864 9,536 1,128 12,651 525 577 817 1973—Ja n ............. Feb............ M ar............ A pr............ M ay ........... June r ........ July r .......... A ug............ Sept............ O ct............. N o v .r ........ D ec............ 54,196 57,567 58,745 57,515 58,019 61,843 64,145 65,478 68,114 70,433 75,934 79,853 4,592 3,985 3,988 3,589 3,930 4,602 4,799 4,522 4,415 4,382 5,421 4,429 2,303 1,534 1,957 1,645 1,899 2,285 2,469 2,232 1,866 1,789 2,855 1,849 2,289 2,451 2,031 1,944 2,031 2,317 2,330 2,290 2,549 2,592 2,566 2,580 48,828 52,692 53,752 52,871 52,871 55,885 57,866 59,491 62,015 64,394 68,730 73,657 8,093 8,550 8,438 8,426 8,548 8,493 9,229 10,033 10.718 11,613 12,277 12,755 26,764 29,829 30,568 29,498 28,677 31,261 31,803 31,390 32,458 33,531 36,092 39,332 1,063 12,908 1,097 13,215 1,124 13,622 1,108 13,839 1,140 14,506 1,129 15,003 1,220 15,615 1,281 16,788 1,281 17,558 1,319 17,931 1,401 18,959 1,586 19,984 777 891 1,005 1,055 1,218 1,356 1,480 1,464 1,685 1,657 1,783 1,767 1974—J a n ............. 81,838 4,166 1,499 2,667 75,942 13,211 39,977 1,847 20,906 1,730 1970—D ec............ 1971—D ec............ 1972—D ec............ 28,451 34,552 43,684 6,729 2,694 2,234 5,214 1,230 1,138 1,515 21,121 1,464 30,996 1,096 40,430 3,475 11,095 5,690 16,211 5,659 23,983 316 476 609 6,235 8,619 10,179 601 862 1,020 1973—Jan ............. Feb............ M ar............ A pr............ M ay ........... Ju n e ........... Ju ly ........... Aug............ Sept............ Oct............. N o v .r ........ D ec............ 44,347 48,533 49,696 49,181 49,080 51,415 54,265 53,153 56,127 57,589 62,294 62,033 2,585 1,945 2,052 1,662 1,744 1,876 2,500 1,878 1,473 1,853 2,285 1,789 1,466 848 1,130 794 910 1,012 1,492 937 604 879 1,245 738 1,118 1,097 922 868 834 864 1,008 942 870 974 1,040 1,051 5,637 5,887 5,783 5,437 5,725 5,279 6,274 6,849 8,022 7,970 8.552 574 585 663 651 614 607 649 685 660 695 701 735 10,252 10,542 10,926 10,989 11,268 11,797 12,440 12,462 13,123 13,337 13,834 13,946 966 1,102 1,124 1,188 1,336 1,508 1,576 1,583 1,882 1,958 2,863 2,169 1,484 907 40,796 45,487 46,520 46,332 46,001 48,031 50,189 49,692 52,771 53,778 57,146 58,075 24,333 28,473 29,148 29,255 28,394 30,348 30,826 29,696 30,967 31,775 34,059 8 ,7 7 3 34,620i 1974—Jan ............. 63,757 521 964 60,180 14,358 2,093 1970—Dec............ 1971—Dec............ 1972—D ec............ 22,574 24,428 30,381 6,596 2,585 2,146 15,655 21,493 27,787 2,223 4,135 4,326 9, 420 12, 762 17,976 4,012 4,596 5,485 323 350 447 1973—Jan ............. Feb............ M ar............ A pr............ M ay ........... Ju n e........... J u ly ........... Aug............ Sept............ O ct............. N ov . r ........ D ec............ 30,652 32,746 32,658 31,833 30,906 32,864 33,486 32,935 34,401 35,647 39,321 40,458 2,468 1,814 1,953 1,539 1,654 1,784 2,193 1,540 1,348 1,700 2,098 1,642 27,778 30,423 30,183 29,778 28,666 30,386 30,569 30,694 32,210 33,176 36,386 37,967 4,184 4,568 4,324 4,034 3,943 3,900 4,042 4,887 5,399 5,769 6,273 6,509 18,069 20,219 20,033 20,119 18,848 20,413 20,209 19,224 19,873 20,415 22,786 24,009 5,526 5,637 5,827 5,625 5,874 6,073 6,319 6,584 6,939 6,993 7,328 7,449 405 508 522 515 587 694 724 701 842 770 838 849 39,932 6,825 25,098 " Y.... 2,119 3,798 6,965 8,010 830 1,464 3,320 4,454 59 92 175 9,123 35,792 1974—Jan ............. 42,131 1970—D ec............ 1971—Dec............ 1972—Dec............ 4,815 8,493 13,091 1,173 1,282 1,496 455 505 225 717 778 1,272 3,583 7,119 11,419 1973—J an ............. Feb............ M ar............ A pr............ M ay........... June........... Ju ly ........... A ug............ Sept............ O ct............. N ov............ D ec............ 13,064 13,559 13,764 13,653 14,730 16,184 17,086 19,968 21,072 21,399 22,243 23,971 1,387 1,461 1,210 1,407 1,498 1,917 1,929 2,262 2,281 1,976 2,526 r l,993 182 83 89 293 272 410 350 579 490 272 824 313 1,206 1,378 1,121 1,113 1,227 1,507 1,579 1,684 1,791 1,704 1,702 1,680 11,495 11,860 12,284 11,988 12,888 14,002 14,862 17,256 18,281 18,889 19,139 21,511 6,753 7,189 7,519 6,726 7,242 8,206 8,802 10,182 10,772 11,010 10,801 12,517 4,742 4,671 4,765 5,262 5,647 5,796 6,060 7,073 7,509 7,879 8,338 8,993 181 238 271 258 343 265 295 450 511 533 579 467 1974—Ja n ............. 124,047 2,011 228 1,793 21,556 12,210 9,347 479 1,368 APRIL 1974 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In n u iu o a s o i u o n a ib ; To U.S. To foreigners Total Total Parent bank Other Total Other branches o f parent bank 47,354 61,336 80,035 2,575 3,114 3,559 716 669 1,000 1,859 42,812 2,445 56,124 2,559 73,842 81,199 87,901 91,646 90,987 92,994 98,756 103,793 105,193 110,673 114,026 120,600 122,499 3,414 3,967 4,137 4,095 4,548 4,579 4,491 4,710 4,815 4,762 4,858 5,234 836 1,132 1,218 1,044 1,122 1,009 1,213 1,085 1,178 1,307 1,088 1,181 2,578 2,835 2,919 3,051 3,426 3,569 3,279 3,625 3,637 3,455 3,771 4,053 123,791 5,311 1,731 36,086 42,033 56,375 2,334 2,674 3,104 657 511 848 56,404 60,814 62,430 60,915 61,427 64,660 66,335 67,401 2,995 3,466 3,613 3,562 4,005 4,035 3,868 4,158 4,233 4,213 4,236 4,650 693 954 1,038 886 955 868 1,046 943 1,022 1,146 897 1,014 2,302 2,511 2,575 2,676 3,050 3,167 2,823 3,215 3,211 3,068 3,339 3,636 52,113 55,780 57,127 55,604 55,636 58,781 60,520 61,075 63,756 65,537 70,536 73,545 8,400 8,750 8,735 8,657 8,810 8,774 9,626 10,641 11,036 11,713 12,261 12,808 82,141 4,813 1,602 3,211 28,451 1,339 1,660 1,456 116 111 113 l 1,501 1,844 1,858 1,970 2,028 1,957 1,875 2,080 2,125 2,031 2,198 2,431 107 264 235 165 170 122 164 171 161 134 143 136 1,394 1,580 1,624 1,805 1,857 1,835 1,711 1,909 1,964 1,897 2,055 2,295 41,933 45,628 46,750 46,075 45,792 48,145 50,973 49,562 52,238 53,748 57,434 57,623 3,277 3,157 3,164 3,397 3,614 3,321 3,883 3,731 4,118 4,036 3,886 3,994 63,757' 2,429 346 2,083 59,356 1,208 1,412 1,276 98 23 72 1,335 1,661 1,676 1,735 1,809 1,731 1,661 ' 1,846 r 1,866 > 1,836 ► 1,908 I 2,173 77,951 49,181 : > I i > » > : t 41,009> 2,200 \ ') I 1 M onth-end 7,377 8,756 11,483 1,967 .............1970—Dec. 2,098 .............1971—Dec. 2,634 42,259 46,370 48,520 47,874 48,536 52,388 55,705 56,152 58,734 61,095 65,526 66,070 9,236 9,387 9,454 9,538 9,331 9,593 9,676 8,587 8,769 9,220 9,692 10,031 12,032 13,223 13,873 13,294 13,505 13,837 14,519 15,148 16,221 16,372 16,589 17,578 2,513 ............ 1973—Jan. 3,086 ......................... Feb. 3,443 3,547 3,792 4,044 4,362 .........................July 4,565 5,116 4,922 5.827 5,132 3,581 113,709 18,672 67,805 9,455 17,777 4,771 ............ 1974—Jan. 1,677 32,509 2,163 38,083 2,256 51,811 4,079 19,816 6,653 22,069 8,178 30,253 3,737 4,433 6,913 4,877 4,928 6,467 1,243 ............ 1970—Dec. 1,276 .............1971—Dec. 1,459 ............ 1972—Dec. 29,233 32,023 33,131 31,970 32,275 35,470 36,285 36,616 38,212 38,838 43,001 44,005 7,680 7,808 7,771 7,743 7,361 7,354 7,092 6,242 6.366 6,475 6,430 7,258 6,800 7,200 7,489 7,234 7,190 7,183 7,517 7,577 8,142 8,510 8,844 9,473 1,297 ............ 1973—Jan. 1,568 .........................Feb. 1,691 1,750 1,786 1,844 1,947 .........................July r 2,167 2,325 2,296 3,179 2,591 74,841 12,906 44,961 7,080 9,895 2,487 ............1974—Jan. 1,222 26,520 1,550 32,128 1,343 41,232 2,320 16,533 3,401 19,137 2,961 24,776 3,119 4,464 6,453 4,548 5,126 7,042 592 .............1970—Dec. 763 .............1971—Dec. 997 ............ 1972—Dec. 7,285 7,412 7,517 7,915 8,078 7,388 7,373 7,509 7,324 7,685 7,585 7,907 7,817 8,245 8,575 6,753 6,952 8,957 6,999 9,182 7,700 9,500 8,076 10,272 913 ............ 1973—Jan. 1,062 1,088 1,136 1,260 1,313 1,418 .........................July 1,512 1,764 1,809 2,662 1,978 1,971 ............1974—Jan. 11,746 11,868 12,219 12,638 13,284 13,315 15,040 16,031 17,017 17,654 18,109 18,454 23,959 27,038 28,119 27,796 27,168 29,332 31,029 30,502 32,210 33,531 36,348 35,332 4,350 37,003 7,672 10,332 1,548 2,164 2,008 13,684 14,038 17,478 2,859 3,676 5,349 3,404 3,181 4,287 72 226 195 119 138 102 148 148 137 108 87 113 1,264 1,436 1,481 1,616 1,671 1,629 1,513 1,698 1,729 1,727 1,821 2,061 29,091 31,714 31,655 30,782 29,730 31,278 31,645 30,549 32,342 32,902 36,239 36,816 2,234 2,188 2,128 2,318 2,225 2,234 2,316 2,213 2,245 2,515 2,468 2,519 16,205 18,360 18,334 17,672 16,982 18,390 18,723 18,671 19,949 20,383 23,189 22,289 6,162 6,394 6,251 6,245 5,897 5,990 5,868 5,005 5,126 4,809 4,983 5,852 4,490 4,771 4,942 4,546 4,626 4,663 4,739 4,660 5,022 5,194 5,598 6,156 500 ............ 1973—Jan. 591 598 533 608 575 595 .........................July 682 809 732 1,557 824 329 1,871 37,884 2,846 22,978 5,799 6,262 925 ............1974—Jan. 1,220 4,183 7,557 11,703 488 1,649 1,964 2,872 4,784 8,395 823 1,124 1,344 90 ............ 1970—Dec. 188 .............1971-D ec. 168 ............ 1972—Dec. 1,137 1,186 1,304 1,126 1,404 1,480 1,374 1,521 1,608 1,667 1,559 1,504 11,760 12,144 12,194 12,138 12,981 14,370 15,381 18,026 18,856 19,151 20,089 22,012 1,875 2,223 1,830 1,977 2,238 2,579 3,002 4,227 4,639 4,924 5,085 5,526 8,502 8, 394 8,829 8, 505 9,259 10,410 10,762 11,982 12,036 12,249 13,239 14,679 1,383 1,527 1,536 1,656 1,483 1,381 1,616 1,817 2,181 1,978 1,765 1,807 167 230 267 389 345 334 331 419 680 581 596 455 21,758 5,293 14,547 1,917 441 750 \ ) \ Other 4,180 5,513 8,486 75,272 80,848 84,066 83,345 84,655 90,133 94,940 95,918 100,742 104,342 109,915 112,133 6,426 24,829 10,773 31,081 11,344 42,531 N on Offi bank cial for insti tutions eigners 1,110 21,495 1,389 23,059 1,203 29,121 542 i Other banks 1,848 i 24,046 http://fraser.stlouisfed.org/ For notes see p. A-77. Federal Reserve Bank of St. Louis 302 ............ 1970—Dec. 374 ............. 1971—Dec. 536 ............ 1972—Dec. Location and currency form IN ALL FO REIGN COUNTRIES . . .Total, all currencies .Payable in U.S. dollars IN UNITED KINGDOM . . .Total, all currencies .Payable in U.S. dollars IN BAHAMAS AND CAYMANS . .Total, all currencies A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 2 2 . L IA B IL IT IE S O F U .S . B A N K S T O T H E IR F O R E IG N B R A N C H E S A N D F O R E IG N BRANCH H O L D IN G S O F S P E C IA L U .S . G O V E R N M E N T S E C U R IT IE S (Amounts outstanding; in millions o f dollars) Wednesday Liabilities 1 Liab. plus sec.2 2 7 ......................... 2 6 ......................... 2 5 ......................... 31 (1/1/69)........... 4,920 6,202 7,104 6,039 1969 M ar. June Sept. Dec. 9,621 13,269 14,349 12,805 2 6 ........................... 2 5 ........................... 2 4 ........................... 3 1 ........................... 1970 Mar. June Sept. Dec. 11,885 12,172 9,663 7,676 2 5 ........................... 2 4 ........................... 3 0 ......................... . 3 0 ......................... . Wednesday 2,858 1,492 2,475 909 3 1 ......................... 3 0 ......................... 2 9 ......................... . 2 9 ........................... 4,358 4,500 3,578 1,419 1,068 1,532 Apr. 26.. May 31.. June 28.. 1,374 1,465 1,443 July 26.. Aug. 30.. Sept. 27.. 1,345 1,270 2,023 Oct. 2 5 .. Nov. 29.. Dec. 27.. 1,415 1,745 1,406 2 3 . D E P O S IT S , U .S . T R E A S . S E C U R IT IE S , A N D G O L D H E L D A T F .R . B A N K S F O R F O R E IG N O F F IC IA L A C C O U N T Wednesday 3.. 11.. 18.. 25.. 1,766 1,664 2,146 2,086 Aug. 1.. 8 .. 15.. 22 .. 29.. 2,226 2,276 1,900 2,446 2,802 5 .. 12.. 19.. 26.. 1,512 1,942 1,801 1,731 3 .. 10.. 17.. 24.. 31.. 1,695 1,790 1,814 1,642 1,768 7 .. 14.. 21 .. 28.. 1,754 1,870 2,473 2,458 Sept. 1,413 790 1,127 Apr. 25 .. May 30.. June 2 7 .. 1,123 1,351 1,521 Nov. Liabilities * 1973 July Oct. Jan. 31.. Feb. 28.. M ar. 28.. 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 Liabilities 1 1973 Jan. 26.. Feb. 23 .. M ar. 29.. 1973 1971 M ar. June Sept. Dec. Liabilities 1 1972 1968 M ar. June Sept. Dec. Wednesday Dec. 5 .. 12.. 19.. 26.. 1,911 1,938 2,382 1,703 1974 Jan. 2 .. 9 .. 16.. 23 .. 3 0.. 1,158 1,322 2,040 2,004 1,686 Feb. 6 .. 13.. 20.. 27.. 1,659 2,218 1,741 1,689 M ar. 6 .. 13.. 20.. 2 7.. 1,610 2,274 2,459 2,964 Certificates Eurodollar Series and special Export-Im port Bank securities held by foreign branches. Beginning July 28, 1971, all of the securities held were U.S. Treasury Certificates Eurodollar Series. 24. S H O R T -T E R M L IQ U ID C L A IM S O N F O R E IG N E R S R E P O R T E D BY N O N B A N K IN G C O N C E R N S (Amounts outstanding; in millions o f dollars) (In millions o f dollars) Payable in Payable in dollars foreign currencies Assets in custody End of period Deposits U.S. Treas. securities1 Earmarked gold 1971............... 1972............... 294 325 43,195 50,934 13,815 215,530 1973— M a r... A p r ... M ay. . Ju n e . . Ju ly ... A u g ... Sept... Oct___ N o v ... D ec.... 327 328 289 334 280 259 250 426 420 251 359,389 358,255 58,015 57,545 57,054 55,855 55,407 54,766 52,998 52,070 15,519 15,513 15,511 15,486 15,464 15,455 15,437 417,122 17,104 17,068 1974—J a n .... F e b .. . M ar... 392 542 366 49,582 50,255 51,342 17,044 17,039 17,037 End of period Total 1969..................... Short Short term term D eposits invest Deposits invest ments 1 ments 1 United King dom C anada 1,491 1,141 • \(1,648 1,507 1,062 697 1,092 1,078 161 150 203 127 183 173 234 234 86 121 120 68 663 372 577 580 534 443 587 443 1070 r\A/» 1 r . . . iy /Z —L/CC.^r [1,965 \2,255 1,446 1,792 169 55 307 340 42 68 702 872 485 535 1973—F eb .r . .. . M ar.r ___ A p r.r . . .. May r . . . . Ju n e r . . . . July r ___ A ug.r ---Sept.r ___ O c t.r . . . . N ov.r . . . . D e c.r . . .. 3,002 3,087 3,047 3,194 3,209 3,272 3,361 3,224 2,907 3,152 3,095 2,228 2,292 2,278 2,420 2,549 2,494 2,585 2,510 2,244 2,517 2,520 170 156 118 130 74 136 82 78 66 64 37 380 414 416 433 453 475 486 476 449 435 425 224 225 234 211 134 167 209 161 148 136 113 1,017 1,105 1,044 1,010 1,064 1,070 1,068 1,088 992 1,044 1,050 1,093 969 887 1,011 882 959 940 891 881 922 775 1974—Jan ' 2,804 2,234 52 363 154 1,047 770 T\*n 2 I1071 7 /I —J-/CC.x 1 M arketable U.S. Treasury bills, certificates o f in debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign currencies. 2 The value o f earmarked gold increased because o f the change in par value of the U.S. dollar in May 1972. 3 Includes $15 million increase in Mar. and $160 million increase in Apr. in dollar value o f foreign currency obliga tions revalued to reflect market exchange rates. 4 The value o f earmarked gold increased because o f the change in par value o f the U.S. dollar in Oct. 1973. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity o f 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 o f changes in reporting coverage. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line are comparable with those shown for the following date. N ote.—Excludes deposits and U.S. Treas. securities held for international and regional organizations. Ear m arked gold is gold held for foreign and international accounts and is not included in the gold stock o f the United States. N ote.—D ata represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion o f the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Tables 25 and 26. APRIL 1974 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 25. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End o f period. Amounts outstanding; in millions o f dollars) Liabilities to foreigners Area and country 1972 1972 1973 Dec. Europe: A ustria.............................................. Belgium-Luxembourg..................... D en m ark .......................................... Finland.............................................. France................................................ Germany, Fed. Rep. o f .................. G reece............................................... Italy.................................................... N etherlands...................................... N orw ay............................................. Portugal............................................ Spain.................................................. Sweden.............................................. Switzerland...................................... T urk ey.............................................. United K ingdom ............................. Yugoslavia........................................ Other Western E urope.................. Eastern E urope............................... Claims on foreigners Mar. Sept.* June 1973 Dec. 4 1,057 7 2 3 3 75 8 4 161 147 19 107 102 14 5 82 23 134 3 898 16 2 6 2 81 19 4 165 182 24 103 111 13 4 72 25 90 3 746 17 3 22 2 129 18 7 165 193 33 108 113 10 12 79 32 148 6 829 22 3 24 19 73 29 25 228 195 35 202 84 16 19 157 57 82 48 1,182 12 2 83 7 4 167 157 15 121 109 14 4 81 13 112 June Mar. Sept.* 12 42 14 121 26 21 288 245 36 204 97 18 19 159 45 87 23 1,422 14 9 40 17 109 20 21 315 273 40 201 96 19 25 140 49 90 14 1,400 18 9 91 15 112 21 31 275 265 52 201 118 21 24 169 53 63 17 1,482 21 12 73 T o tal.......................................... 1,961 1,808 1,686 1,933 2,517 2,888 2,949 3,025 C anad a.................................................. 213 266 248 236 965 1,360 1,300 1,330 Latin America: Argentina.......................................... Brazil.................................................. Chile.................................................. C olom bia.......................................... C uba.................................................. M exico.............................................. Panam a............................................. P e ru ................................................... U ruguay............................................ Venezuela.......................................... Other L.A. republics..................... Baham as1.......................................... Neth. Antilles and S urinam ......... O ther Latin A m erica..................... 29 35 18 7 1 27 18 4 7 21 45 381 10 4 30 42 17 8 * 34 17 4 5 23 46 320 10 9 24 47 13 7 * 37 18 6 3 23 47 415 11 19 24 41 13 8 * 36 17 10 2 24 49 349 7 20 79 169 34 40 1 183 74 36 4 92 95 585 13 34 74 172 31 40 1 195 72 33 5 106 96 571 12 44 60 178 29 36 1 204 72 34 5 101 102 766 11 90 65 202 34 44 1 187 91 37 5 103 125 744 9 105 T o tal.......................................... 605 565 670 602 1,439 1,451 1,688 1,753 Asia: China, People’s Republic of (China M ainland)....................... China, Rep. o f (Taiw an)............... H ong K o n g ...................................... In d ia................................................... Indonesia.......................................... Israel.................................................. J a p a n ................................................. K o rea ................................................ Philippines........................................ Thailand............................................ Other A sia........................................ 32 26 12 7 16 13 189 21 16 5 152 32 33 17 7 16 16 229 19 25 5 156 31 35 13 7 15 9 275 18 19 6 140 36 31 17 7 15 11 328 20 16 6 179 * 65 32 34 34 31 473 63 48 23 203 1 61 31 32 39 34 518 47 47 25 191 11 76 34 29 36 27 506 41 47 24 203 48 77 36 32 41 28 632 48 52 27 203 T o tal.......................................... 488 554 567 665 1,007 1,026 1,033 1,224 Africa: E gy p t................................................. South A frica.................................... Zaire................................................... Other A frica..................................... 32 8 1 62 37 6 12 67 20 6 12 67 11 6 19 97 16 52 8 88 25 56 16 84 23 51 15 92 28 60 19 90 T otal.......................................... 104 121 105 134 164 179 181 197 O ther countries: A ustralia........................................... All o th er............................................ 46 13 54 11 72 11 94 9 85 22 81 24 75 26 89 22 111 T o tal.......................................... 59 65 83 103 107 105 101 International and regional................ * * * * 1 1 1 * G rand to ta l............................. 3,430 3,381 3,361 3,671 6,199 7,011 7,254 7,640 i Includes Bermuda. N ote.— Reported by exporters, importers, and industrial and commercial 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 82 26. INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1974 SH O R T TERM L IA B IL IT IE S T O A N D C L A IM S O N F O R E IG N E R S REPO RTED BY N O N B A N K IN G C O N C E R N S , BY T Y P E (Amounts outstanding; in millions o f dollars) Liabilities Claims Payable in foreign currencies End o f period Total Payable in dollars Payable in foreign currencies Payable in dollars Total Deposits with banks abroad in reporter’s name Other 1,797 1,786 2,124 1,450 1,399 1,654 346 387 471 3,874 3,710 4,159 3,222 3,124 3,532 386 221 244 267 365 383 2,387 2,512 2,677 1,843 1,956 2,281 543 557 496 4,457 4,361 4,160 3,868 3,756 3,579 234 301 234 355 305 348 / \ 2,437 2,375 2,564 2,704 2,763 1,975 1,937 2,109 2,229 2,301 462 438 454 475 463 4,515 4,708 4,894 5,185 5,004 3,909 4,057 4,186 4,535 4,467 232 303 383 318 290 374 348 326 333 247 1972—M ar........................ Ju n e........................ Sept........................ D ec.1..................... / \ 2,844 2,925 2,933 3,119 3,430 2,407 2,452 2,435 2,635 2,918 437 472 498 484 512 5,177 5,331 5,495 5,723 6,199 4,557 4,685 4,833 5,074 5,523 318 376 432 411 394 302 270 230 238 282 1973— M ar........................ Ju n e ....................... Sept.*..................... 3,381 3,361 3,671 2,858 2,780 2,970 523 581 701 7,011 7,254 7,640 6,112 6,392 6,690 462 504 536 437 358 414 1969—Sept........................ r\o p 1 / I Sept........................ D ec......................... 1971 _ M a r ........................ June........................ Sept........................ i 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 2 7. L O N G -T E R M L IA B IL IT IE S T O AND preceding date; figures on the second line are comparable with those shown for the following date, C L A IM S ON F O R E I G N E R S R E P O R T E D BY N O N B A N K IN G C O N C E R N S (Amounts outstanding; in millions of dollars) Claims Total liabilities End of period Country or area Total United Kingdom Other Europe Canada Brazil Mexico O ther Latin America Japan O ther Asia Africa All other 1969—Sept.......................... / Dec 1 t 1,418 1,725 2,304 1,965 2,215 2,363 167 152 152 369 433 442 465 496 562 179 172 177 70 73 77 213 388 420 143 141 142 246 249 271 71 69 75 42 42 46 1970— M ar.......................... Ju n e......................... Sept.......................... Dec........................... 2,358 2,587 2,785 3,102 2,744 2,757 2,885 2,950 159 161 157 146 735 712 720 708 573 580 669 181 177 180 183 74 65 63 60 458 477 586 618 158 166 144 140 288 288 284 292 71 76 73 71 47 54 58 64 1971—M ar.......................... Ju n e......................... Sept.......................... / \ 3,177 3,172 2,939 3,159 3,138 2,983 2,982 3,019 3,118 3,118 154 151 135 128 128 688 687 672 705 705 670 677 765 761 767 182 180 178 174 174 63 63 60 60 60 615 625 597 652 653 161 138 133 141 136 302 312 319 327 325 77 75 85 86 86 72 74 75 85 84 1972—M ar.......................... Ju n e......................... Sept.......................... D e c.1....................... / \ 3,093 3,300 3,448 3,540 3,864 3,191 3,255 3,235 3,370 3,480 129 108 128 163 187 713 713 695 715 758 787 797 805 833 857 175 188 177 184 187 60 61 63 60 64 665 671 661 659 702 137 161 132 156 134 359 377 389 406 399 81 86 89 87 82 85 93 96 109 111 1973— M ar.......................... Ju n e ......................... Sept.*....................... 4,022 4,008 4,255 3,622 3,696 3,855 151 174 211 816 823 840 871 882 884 165 146 152 63 65 71 794 817 829 124 138 152 413 416 475 101 104 104 125 131 137 i 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 620 shown for the preceding date; figures on the second line are comparable with those shown for the following date. APRIL 1974 o EXCHANGE RATES A 83 FOREIGN EXCHANGE RATES (In cents per unit o f foreign currency) Australia (dollar) Austria (schilling) Belgium (franc) Canada (dollar) Denmark (krone) Finland (markka) France (franc) Germany (Deutsche mark) 111.36 113.61 119.23 141.94 3.8659 4.0009 4.3228 5.1649 2.0139 2.0598 2.2716 2.5761 95.802 99.021 100.937 99.977 13.334 13.508 14.384 16.603 23.742 23.758 24.022 26.165 18.087 18.148 19.825 22.536 27.424 28.768 31.364 37.758 Ju n e............................................................................ Ju ly ............................................................................ Aug.................................................................. .......... Sept............................................................................ O ct.............................................................................. N ov............................................................................ D ec............................................................................. 141.29 141.50 141.50 141.58 141.78 141.48 146.83 148.22 148.22 148.33 4.8795 4.8330 4.9082 5.2408 5.8124 5.5917 5.5695 5.5871 5.2670 5.1150 2.5378 2.4895 2.5356 2.6643 2.8151 2.7035 2.7089 2.7328 2.5882 2.4726 100.333 99.928 99.916 100.160 100.049 99.605 99.181 99.891 100.092 100.058 16.275 16.099 16.241 17.130 18.041 17.521 17.480 17.692 16.744 16.089 25.628 25.872 25.277 26.731 27.202 27.314 27.042 27.202 26.894 26.104 22.146 21.959 22.341 23.472 24.655 23.527 23.466 23.718 22.687 21.757 35.548 35.252 35.841 38.786 42.821 41.219 41.246 41.428 38.764 37.629 1974—Jan .............................................................................. Feb............................................................................. M ar............................................................................. 148.23 148.50 148.55 4.8318 5.0022 5.1605 2.3329 2.4358 2.5040 100.859 102.398 102.877 14.981 15.570 16.031 25.138 25.568 26.143 19.905 20.187 20.742 35.529 36.844 38.211 Period India (rupee) Ireland (pound) Italy (lira) Japan (yen) Malaysia (dollar) Mexico (peso) N eth erlands (guilder) New Zealand (dollar) 1973........................................................................................ 13.233 13.338 13.246 12.071 239.59 244.42 250.08 245.10 .15945 .16174 .17132 .17192 .27921 .28779 .32995 .36915 32.396 32.989 35.610 40.988 8.0056 8.0056 8.0000 8.0000 27.651 28.650 31.153 35.977 111.48 113.71 119.35 136.04 Dec............................................................................. 13.260 13.255 13.340 13.753 13.605 13.220 12.987 12.938 12.767 12.328 247.24 248.37 253.05 257.62 253.75 247.57 241.83 242.92 238.70 231.74 .17604 .16971 .17100 .16792 .17200 .17423 .17691 .17656 .16904 .16458 .38190 .37666 .37786 .37808 .37801 .37704 .37668 .37547 .35941 .35692 39.922 40.307 40.333 40.865 43.121 43.859 43.361 43.641 41.838 41.405 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 8.0000 34.834 33.890 34.488 36.582 38.700 37.596 38.542 40.011 37.267 35.615 132.21 132.99 132.34 132.40 135.02 135.33 145.07 148.64 147.74 144.34 1974—Jan .............................................................................. Feb............................................................................. M ar............................................................................ 11.854 12.131 12.415 222.40 227.49 234.06 .15433 .15275 .15687 .33559 .34367 .35454 40.094 40.489 41.152 8.0000 8.0000 8.0000 34.009 35.349 36.354 139.08 140.31 143.40 Period Norway (krone) Portugal (escudo) South Africa (rand) Spain (peseta) Sri L anka1 (rupee) Sweden (krona) Switz erland (franc) United K ing dom (pound) 1970........................................................................................ 1971........................................................................................ 1972........................................................................................ 1973........................................................................................ 13.992 14.205 15.180 17.406 3.4978 3.5456 3.7023 4.1080 139.24 140.29 129.43 143.88 1.4280 1.4383 1.5559 1.7178 16.774 16.800 16.057 15.705 19.282 19.592 21.022 22.970 23.199 24.325 26.193 31.700 239.59 244.42 250.08 245.10 1973—M ar............................................................................ Dec............................................................................. 16.954 16.428 17.196 18.192 18.932 18.145 18.048 18.285 17.872 17.651 4.1005 3.9563 4.0050 4.2175 4.4624 4.3243 4.2784 4.3014 4.1155 3.9500 141.43 141.70 141.65 148.07 148.63 148.52 148.50 148.54 148.45 148.66 1.7183 1.7217 1.7224 1.7229 1.7385 1.7553 1.7610 1.7576 1.7479 1.7571 15.774 15.777 15.883 16.538 16.431 15.948 15.768 15.481 15.503 15.044 22.582 22.161 22.567 23.746 24.732 24.070 23.769 23.942 23.019 22.026 31.088 30.821 31.494 32.757 35.428 33.656 33.146 33.019 31.604 31.252 247.24 248.37 253.05 257.62 253.75 247.57 241.83 242.92 238.70 231.74 1974—Jan .............................................................................. Feb............................................................................. M ar............................................................................. 16.739 17.351 17.734 3.7195 3.8567 3.9519 148.66 148.76 148.88 1.7205 1.6933 1.6927 14.423 14.373 14.636 20.781 21.373 21.915 29.727 31.494 32.490 222.40 227.49 234.06 Period 1973— M ar............................................................................ A pr............................................................................. 1973—M ar............................................................................ A pr............................................................................. M ay........................................................................... June..................................................................... Ju ly ............................................................................ Aug............................................................................ Sept............................................................................ O ct.............................................................................. M ay............................................................................ June........................................................................... Ju ly ............................................................................ Aug............................................................................. Sept............................................................................ Oct.............................................................................. 1 Ceylon renamed Sri Lanka under new constitution, 1972. N ote.—Averages o f certified noon buying rates in New York for cable transfers. For description o f rates and back data, see “ International Fi nance,” Section 15 of Supplement to Banking and M onetary Statistics, 1962. A 84 CENTRAL BANK RATES □ APRIL 1974 CENTRAL BANK RATES FO R D IS C O U N T S A N D A D V A N C E S T O C O M M E R C IA L BANKS (Per cent per annum) Changes during the last 12 months Rate as o f M ar. 31, 1973 Country 1973 Per cent M onth effective Argentina. A u stria .. . . B elgium ... B razil........ C a n a d a .. ., 18.0 5.5 5.0 18.0 4.75 Feb. Nov. Dec. Feb. Oct. 1972 1972 1972 1972 1971 C hile.................................... China, Rep. o f (Taiwan). C olom bia........................... C osta R ica......................... D enm ark............................ 20.0 9.25 14.0 5 .0 9 .0 Aug. May May June Jan. 1972 1971 1970 1966 1973 E c u a d o r.. . . E g y p t........... El Salvador. E th io p ia.. . . Fin lan d . . . . 8.0 5 .0 4 .0 6.50 7.75 Jan. May Aug. Aug. Jan. 1970 1962 1964 1970 1972 F ran ce................................ Germany, Fed. Rep. o f .. G h a n a ................................ G reece................................ H onduras........................... 7.5 5.0 8 .0 6.5 4 .0 Nov. Jan. July Sept. Feb. 1972 1973 1971 1969 1966 Iceland. . . In d ia ........ Indonesia. Ira n .......... Ire la n d ... 5.25 6 .0 6 .0 7.5 8.75 Jan. Jan. May Dec. Jan. 1966 1971 1969 1972 1973 Italy . .. . Jam aica. Japan. .. K o re a ... M exico.. 4 .0 7.0 4.25 11.0 4.5 Apr. Jan. June Aug, June 1972 1973 1972 1972 1942 3.5 4 .0 6 .0 4.5 4.5 Nov. Nov. Mar. June Sept. 1951 1972 1972 1968 1969 6 .0 9.5 10.0 5.5 6 .0 M ay Nov. June M ar. Aug. 1972 1959 1969 1973 1972 5 .0 6.5 5 .0 4.5 5 .0 Oct. Jan. Nov. Jan. Oct. 1971 1970 1971 1973 1959 5 .0 8 .0 8.5 5 .0 18.0 Sept. M ar. Mar. Oct. Sept. 1966 1973 1973 1970 1970 M orocco N etherlands.. New Zealand. N igeria............ N orw ay......... . Pakistan..................... P e ru ............................ Philippine Republic. Portugal..................... South A frica............. S p ain ............ Sri L an k a1. . Sweden........ Sw itzerland. T h ailan d . . . Tunisia................... T urkey ................... United K ingdom . V enezuela............. V ietnam ................. Apr. May June 5.50 5.25 5.75 Aug. 6 .0 6 .0 6.5 6.25 Sept. Oct. Nov. 7.0 7.75 Dec. Jan. Feb. Mar. 18.0 6 .0 8.75 18.0 7.25 8.75 6.75 7.25 50.0 10.5 10.75 50.00 14.0 8.0 5.0 10.0 14.0 8 .0 9.00 10.0 8 .0 5 .0 4 .0 6.50 9.25 9.25 6 .0 7.0 8.50 9.5 11.0 11.0 7 .0 8.0 6.5 4 .0 5.25 7 .0 6 .0 9 .0 12.75 7 .0 9 .0 10.5 12.75 6.5 5 .0 5 .5 5.0 6.0 7.0 6.0 6.5 9.0 9.00 9 .0 8.00 7.0 5.5 8.0 5.00 6.5 6 .0 5.5 7.75 7.50 1 Ceylon renamed Sri Lanka under new constitution, 1972. N ote.— Rates shown are mainly those at which the central bank either discounts or makes advances against eligible commercial paper and/or govt, securities for commercial banks or brokers. For countries with more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the largest proportion o f its credit operations. O ther 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. Colom bia —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; C osta Rica —5 per cent for paper related to commercial transactions (rate shown is for agricultural and industrial paper); Ecuador —5 per cent for special advances and for bank acceptances for agricultural purposes, 7 per cent for bank acceptances for industrial purposes, and 10 per cent for advances to cover shortages in legal reserves; Ethiopia —5 per cent for export paper and 6 per cent for Treasury bills. Honduras —Rate shown is for advances only. Indonesia —Various rates depending on type o f paper, collateral, com modity involved, etc.; Japan —Penalty rates (exceeding the basic rate shown) for borrowings from the central bank in excess of an individual bank’s quota; July Rate as of M ar. 31, 1974 1974 11.50 8.75 13.0 9 .0 9 .0 9.00 11.0 4.5 3.5 8.00 6.0 4.5 5.5 8 .0 9.5 10.0 5.00 6 .5 6 .0 6.5 5 .0 5.5 5 .0 5 .0 8.75 |1 3 .0 5 .0 18.0 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, import substitution industries and manufacture of exports; 8 per cent for other agricultural, industrial and mining paper; Philippines —6 per cent for financing the production, importation, and dis tribution of 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 banks; and t United Kingdom —On Oct. 9, 1972, the Bank o f England announced: “ With effect from Friday October 13th the Bank’s minimum lending rate will until further notice be the average rate o f discount for Treasury bills established at the most recent tender plus one half percent rounded to the nearest one quarter percent above. A lthough the rate will therefore be automatically determined by this formula it will for convenience be made known each Friday afternoon concurrently with and in the same m anner as the results o f the Treasury bill tender. The regular weekly bank rate announcement will be discontinued from now on.” Therefore, the mini mum lending rate as o f last Friday of the m onth will be carried in place o f Bank rate. Venezuela —2 per cent for rediscounts o f certain agriculture paper, 4 Vi per cent for advances against government bonds, and 5 Vi per cent for rediscounts of 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 of 24 per cent for banks whose loans exceed quan titative ceilings. APRIL 1974 □ OPEN MARKET RATES; ARBITRAGE A 85 OPEN MARKET RATES (Per cent per annum) Month Germany, Fed. Rep. o f United Kingdom C anada Prime Treasury Day-toTreasury bank bills, bills, day 3 months 3 months i m oney2 3 mbills, onths3 Netherlands Switzer land Day-today money Clearing banks’ deposit rates4 Day-today m oney5 Treasury bills, 60-90 days 6 Day-today m oney7 Treasury bills, 3 months Day-today money Private discount rate 197 2 197 3 3.55 5.43 3.65 5.27 6.06 10.45 5.02 9.40 4.83 8.27 3.84 7.96 4.95 8.92 3.04 4.30 10.18 2.15 4.07 1.97 4.94 4.81 5.09 1973—Mar. Apr. May June July. Aug. Sept. O c t.. Nov. Dec. 4.28 4.73 5.08 5.40 5.67 6.47 6.41 6.56 6.48 6.39 4.21 4.53 4.67 5.00 5.28 5.87 6.31 6.54 6.56 6.58 9.76 8.64 8.35 8.14 9.06 12.78 12.12 11.37 13.38 13.74 8.16 7.87 7.45 7.12 8.35 10.98 11.37 10.75 11.76 12.41 7.52 7.20 8.29 6.66 5.89 9.70 9.13 10.53 8.80 9.57 7.50 7.25 7.11 6.55 6.25 8.99 9.50 9.50 9.50 9.46 7.49 7.46 7.71 7.46 7.89 8.87 9.73 10.99 10.96 11.14 5.75 5.75 5.75 7.00 7.00 11.37 14.84 7.40 10.90 15.78 10.63 9.76 10.57 11.30 11.89 1.53 1.22 2.89 3.59 5.58 5.92 5.67 5.25 5.29 6.41 .61 .77 3.88 4.28 5.65 7.24 7.97 7.93 7.88 8.75 5.00 5.00 5.00 5.00 5.00 5.00 5.25 5.25 5.25 5.40 1974—Jan.. Feb. Mar. 6.31 6.10 6.24 6.50 6.49 6.50 13.67 13.63 14.39 12.09 11.94 11.95 10.36 8.96 11.31 9.25 9.50 9.50 6.50 6.50 9.36 9.73 6.00 1 Based on 2 Based on 3 D ata for months. 4 D ata for deposits. 5 Rate shown is on private securities. 6 Rate in effect at end o f month. 7 M onthly averages based on daily quotations. 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 A R B IT R A G E O N N o te .—For description and back data, see “ International Finance,’ Section 15 of Supplement to Banking and M onetary S ta tistics , 1962. TREASURY B IL L S (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Date Treasury bill rates United Kingdom (adj. to U.S. quotation basis) United States Spread (favor of London) Premium ( + ) or discount ( - ) on forward pound N et incentive (favor of London) Canada As quoted in C anada Adj. to U.S. quotation basis United States Spread (favor of Canada) Premium ( + ) or discount ( - ) on forward Canadian dollars Net incentive (favor of Canada) 1973 Oct. 5 ............... 12............... 19............... 2 6 ............... 10.74 10.67 10.56 10.54 7.36 7.08 6.98 6.99 3.38 3.59 3.58 3.55 - 3 .7 3 -3 .5 6 - 3 .6 8 -4 .0 8 -.3 5 .03 -.1 0 - .5 3 6.68 6.51 6.53 6.51 6.26 6.29 6.30 6.30 7.36 7.08 6.98 6.99 - 1 .1 1 -.7 9 -.6 8 -.6 9 1.41 .46 .08 -.7 0 .30 -.3 3 -.6 0 -1 .3 9 Nov. 2 . ............. 9 ............... 16............... 2 3 ............... 3 0 ............... 10.46 10.57 12.24 12.31 12.28 7.39 8.01 7.51 7.74 7.32 3.07 2.56 4.73 4.57 4.76 -3 .7 9 -3 .5 4 - 5 .1 1 -5 .9 2 -5 .5 0 -.7 2 - .9 8 -.3 8 - 1 .3 5 - .5 4 6.53 6.52 6.47 6.47 6.43 6.30 6.33 6.25 6.23 6.22 7.39 8.01 7.51 7.74 7.32 -1 .0 9 - 1 .6 8 - 1 .2 6 - 1 .5 1 -1 .1 0 - .2 8 -.0 6 .18 .22 .30 - 1 .3 7 -1 .7 4 - 1 .0 8 - 1 .2 9 - .8 0 Dec. 7 ............... 14............... 2 1 ............... 2 8 ............... 12.32 12.29 12.29 12.25 7.55 7.49 7.21 7.36 4.77 4.80 5.08 4.89 - 5 .4 7 -7 .6 2 -6 .7 6 -6 .6 5 - 0 .7 0 -2 .8 2 - 1 .6 8 - 1 .7 6 6.43 6.38 8.38 6.36 6.23 6.17 6.17 6.15 7.55 7.49 7.21 7.36 -1 .3 2 - 1 .3 2 -1 .0 4 - 1 .2 1 0.48 0.04 -0 .1 0 -0 .2 4 -0 .8 4 -1 .2 8 -1 .1 4 -1 .4 5 1974 Jan. 4 ............... 11............... 18............... 2 5 ............... i2 .0 4 12.04 11.88 11.86 7.38 7.75 7.75 7.92 4.66 4.29 4.13 3.94 -7 .4 4 -7 .3 0 -7 .6 9 -8 .8 2 - 2 .7 8 - 3 .0 1 -3 .5 6 -4 .8 8 6.35 6.32 6.30 6.26 6.13 6.10 6.10 6.08 7.38 7.75 7.75 7.92 - 1 .2 5 - 1 .6 5 - 1 .6 5 —1.84 -.6 0 -.2 2 -.1 8 -1 .8 5 - 1 .8 7 -1 .8 3 -1 .8 4 Feb. X............... 8 ............... 15............... 2 2 ............... 11.82 11.80 11.75 11.66 7.42 6.99 7.00 6.94 4.40 4.81 4.75 4.72 -1 0 .0 0 -1 0 .9 5 -1 0 .0 9 - 8 .5 4 -5 .6 0 -6 .1 4 -5 .3 4 -3 .8 2 6.00 6.17 6.12 6.12 6.04 5.99 5.95 5.95 7.42 6.99 7.00 6.94 -1 .3 8 -1 .0 0 -1 .0 5 - 0 .9 9 -.0 4 -.2 0 -.3 5 -.3 3 -1 .4 2 - 1 .0 2 - 1 .4 0 -1 .3 2 Mar. 1 ............... 8 ............... 15............... 2 2 ............... 2 9 ............... 11.77 11.77 11.75 11.80 11.82 7.51 7.66 7.74 8.02 8.34 4.26 4.11 4.01 3.78 3.48 -1 2 .4 6 - 9 .8 1 -9 .6 4 -8 .3 2 -7 .2 4 -8 .2 0 -5 .7 0 - 5 .6 2 - 4 .5 4 - 3 .7 6 6.07 6.13 6.19 6.29 6.51 5.92 5.97 6.01 6.17 6.36 7.51 7.66 7.74 8.02 8.34 -1 .5 9 -1 .6 9 -1 .7 3 -1 .8 5 -1 .9 8 -.2 0 -.0 8 .25 .49 .42 - 1 .7 9 - 1 .7 7 - 1 .4 8 - 1 .3 6 -1 .5 6 N ote. — Treasury bills: All rates are on the latest issue o f 91-day bills. U.S. and C anadian rates are market offer rates 11 a.m. Friday; U.K. rates are Friday opening m arket offer rates in London. Premium or discount on forw ard pound and on forw ard 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 Canadian dollars. A ll series: Based on quotations reported to F.R . Bank of New Y ork by m arket sources. For description o f series and for back figures, see Oct. 1964 Bulletin , pp. 1241-60. For description o f adjustments to U .K . and Canadian Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, Oct. 1964 Bulletin . GOLD RESERVES □ APRIL 1974 A 86 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) End of period 1966. 1967. 1968. 1969. 1970. 1971. 1972. 1973—Feb... M a r.. A p r.. M ay. June. J u ly .. A ug.. Sep t.. O ct... Nov.. D e c .. Esti mated total w o rld 1 Intl. M one tary Fund United States Esti mated rest of world Algeria Argen tina 43,185 41,600 40,905 41,015 41,275 41,160 44,890 2,652 2,682 2,288 2,310 4,339 4,732 5.830 13,235 12,065 10,892 11,859 11,072 10,206 10.487 27,300 26,855 27,725 26,845 25,865 26,220 28,575 6 155 205 205 191 192 208 84 84 109 135 140 90 152 224 231 257 263 239 259 281 701 701 714 715 714 729 792 1,525 1,480 1,524 1,520 1 ,470 i ,544 1,638 5.830 5.830 5.830 5.826 5.831 5.826 5.826 5.826 6,474 6,476 6.478 10.487 10.487 28,565 10.487 10.487 10.487 28,545 10.487 10.487 10.487 28j 565 11.652 11.652 11.652 *31,720 208 208 208 208 208 208 208 208 231 231 231 152 152 152 152 152 152 152 159 169 169 169 281 282 281 281 281 281 281 282 312 312 311 793 793 793 793 793 793 793 793 881 881 881 1,603 1,603 1,603 1,603 1,603 i ,603 1,603 1,603 1,781 1,781 1,781 6.478 6.478 11.652 11.652 231 231 312 312 882 882 1,781 1,781 France Ger many, Fed. Rep. of Greece India 44,880 44,865 44,880 *49,850 1974—J a n .... Feb.*. End of period China, Rep. o f (Taiwan) C o lombia D en mark Egypt 1 Fin land Aus tralia Aus tria Bel gium Brazil Burma Canada 45 45 45 45 45 46 50 84 84 84 84 63 22 12 1,046 1,015 863 872 791 792 834 50 50 50 50 50 50 50 50 56 56 12 12 12 12 12 12 11 8 8 8 8 834 834 834 834 834 834 834 834 927 927 927 Chile 45 45 46 47 47 47 927 927 Iran Iraq Ire land Israel 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ 1971............................ 1972............................ 62 81 81 82 82 80 87 26 31 31 26 17 14 16 108 107 114 89 64 64 69 93 93 93 93 85 85 92 45 45 45 45 29 49 53 5,238 5,234 3,877 3,547 3,532 3,523 3,826 4,292 4,228 4,539 4,079 3,980 4,077 4,459 120 130 140 130 117 98 133 243 243 243 243 243 243 264 130 144 158 158 131 131 142 106 115 193 193 144 144 156 23 25 79 39 16 16 17 46 46 46 46 43 43 43 1973—Feb................. M ar................. A p r................. M ay ............... J u n e ............... July................. Aug................. Sept................. Oct.................. Nov................. D ec................. 87 87 87 87 87 87 87 87 97 97 97 16 16 16 16 16 16 16 16 18 18 18 69 69 69 69 69 69 69 69 77 77 77 92 92 92 92 92 92 92 92 103 103 53 53 53 53 53 53 53 53 59 42 35 3,834 3,834 3,834 3,834 3,841 3,835 3,835 3,835 4,261 4,261 4,261 4,468 4,468 4,468 4,469 4,462 4,469 4,469 4,469 4,966 4,966 4,966 133 133 133 133 133 133 133 133 148 148 148 264 264 264 264 2.64 264 264 264 293 142 142 142 142 142 142 142 142 158 158 158 156 156 156 156 156 156 156 156 173 173 173 17 17 17 17 17 17 17 16 19 18 18 41 41 41 41 4i 41 41 41 1974 —Jan ................. 97 11 18 77 77 35 35 4,262 4,262 4 966 4,966 148 148 158 158 173 17 18 Feb.*.............. End of period Italy 1966............................ 1967............................ 1968............................ 1969............................ 1970............................ IV 71............................ 1972............................ 2,414 2,400 2,923 2,956 2,887 2,884 3,130 329 338 356 413 532 679 801 67 136 122 86 86 87 94 193 193 288 288 288 322 350 1973—Feb................. M ar................. A pr................. M ay ................ Ju n e ................ July................. Aug................. Sept................. Oct.................. N ov................. D ec................. 3,134 3,134 3,134 3,134 3,134 3,134 3,134 3,134 3,483 3,483 3,483 801 801 801 802 802 802 802 802 891 891 891 94 94 94 1974—Jan .................. Feb *.............. 3,483 3,483 891 891 For notes see end o f table. Japan Kuwait Leb anon N ether lands Mexi co M oroc co 68 68 85 85 85 85 93 1 31 66 63 48 58 63 109 166 165 169 176 184 188 21 21 21 21 21 21 23 1,730 1,711 1,697 1,720 1 ,787 1,909 2,059 18 18 24 25 23 33 37 53 53 54 54 54 55 60 65 20 20 25 40 40 41 44 60 62 45 56 67 71 350 350 350 350 350 350 350 350 388 388 389 93 93 93 93 93 93 93 93 103 103 103 63 63 63 63 63 63 63 63 70 71 71 188 188 188 188 186 184 182 179 198 198 23 23 23 23 23 23 23 23 26 26 26 2,059 2,059 2,059 2,059 2,063 2,063 2,065 2,065 2,294 2,294 2,294 37 37 37 37 41' 41 41 60 60 60 60 60 60 60 60 67 67 67 41 41 41 41 41 41 41 41 46 46 71 71 50 50 40 40 40 40 45 45 45 389 389 103 103 2,294 2,294 41 41 67 67 N or way 37 37 37 37 Paki stan Philip pines M alay sia Libya Peru 45 45 APRIL 1974 □ GOLD RESERVES AND PRODUCTION A 87 GOLD R ESER V E S O F C EN TR A L BA NK S A N D G O V ER N M E N TS— C o n tin u e d (In millions o f dollars; valued at $35 per fine ounce through Apr. 1972, at $38 from May 1972-Sept. 1973, and at $42.22 thereafter) End of period Turkey United King dom 92 92 92 92 92 82 89 102 97 97 117 126 130 136 1,940 1,291 1,474 1,471 1,349 775 800 3.162 3.162 3.162 3.162 3.162 3.162 3.162 3.162 3.512 3.513 3.513 89 89 89 89 89 89 89 89 99 99 99 136 136 136 136 136 136 136 136 151 151 151 810 810 810 810 810 810 797 797 886 886 886 3.513 3.513 99 99 151 151 Portu gal Saudi A rabia South Africa 1966. 1967. 1968. 1969. 1970. 1971. 1972. 643 699 856 876 902 921 1,021 69 69 119 119 119 108 117 637 583 1,243 1,115 666 410 681 785 785 785 784 498 498 541 203 203 225 226 200 200 217 2,842 3,089 2,624 2,642 2,732 2.909 3,158 1973—F e b .., M ar.. A p r.. May. June. J u ly .. A ug.. S ep t.. O ct... N o v .. D e c .. 1,022 1,022 1,022 1,022 1,022 1,022 1.035 1.036 1,154 1,159 1,163 117 117 117 117 117 117 117 116 129 129 129 711 714 720 721 724 734 740 738 820 809 802 542 542 542 542 542 542 542 542 602 602 602 220 220 220 220 220 220 220 220 244 244 244 129 129 793 783 602 244 244 1974—J a n ... . Feb.*. Switzer land Spain 1 Includes reported or estimated gold holdings o f international and regional organizations, central banks and govts, o f countries listed in this table, and also o f a number 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 China Mainland. The figures included for the Bank for International Settlements are the Bank’s gold assets net of gold deposit liabilities. This procedure avoids the overstatement o f total world gold reserves since most o f the GOLD Thai land U ru guay Bank for Intl. Settle ments 2 Vene zuela Yugo slavia 146 140 133 165 162 148 133 401 401 403 403 384 391 425 21 22 50 51 52 51 56 -424 -624 -349 -480 -282 310 218 133 133 133 133 133 133 133 133 148 148 148 425 425 425 425 425 425 425 425 472 472 472 56 56 56 56 56 56 56 56 61 61 62 214 214 214 199 205 204 205 213 227 237 235 472 472 62 62 271 277 gold deposited with the BIS is included in the gold reserves of individual countries. 2 Net gold assets of BIS, i.e., gold in bars and coins and other gold assets minus gold deposit liabilities. N o te .— For back figures and description of the data in this and the following tables on gold (except production), see “ G old,” Section 14 of Supplement to Banking and M onetary S ta tistics , 1962. P R O D U C T IO N (In millions o f dollars; valued at $35 per fine ounce through 1971, at $38 through Sept. 1973, and at $42.22 thereafter) Africa Period 1967................................ 1968................................ 1969................................ 1970................................ 1971*............................. 1972*............................. 1973*............................. World produc tion 1 1.410.0 1.420.0 1.420.0 1.450.0 1973—Jan ..................... Feb..................... Malr.................... A pr.................... M a y .................. Ju n e................... J u ly ................... Aug.................... Sept.................... O ct..................... N ov................... Dec.................... N orth and South America South Africa Ghana Zaire United States C an ada Mex ico 1.068.7 1,088.0 1,09(3.7 1,128.0 1.098.7 1.109.8 1,073.6 26.7 25.4 24.8 24.6 24.4 27.5 5 .4 5.9 6 .0 6 .2 6 .0 5.3 53.4 53.9 60.1 63.5 52.3 54.3 103.7 94.1 $9.1 84.3 79.1 77.2 75.2 5.8 6.2 6.3 6.9 5.3 5.6 6.2 6.1 6.3 6.2 6.8 6.4 5.6 5.7 5.7 7.0 6.3 6.7 .5 .4 .5 88.2 86.5 88.5 86.6 86.0 87.6 88.3 90.2 88.2 97.5 97.2 88.8 1974—Jan ..................... 1 Estimated; excludes U.S.S.R., other Eastern European countries, C hina M ainland, and N orth Korea. 6.1 Asia Nica Colom India ragua bia 5.2 4.9 3.7 4 .0 3.7 3.0 9 .0 8 .4 7.7 7.1 6 .6 7.1 3 .4 4 .0 3.4 3.7 4.1 4 .0 .8 .5 .5 .6 .6 .6 .8 .9 .8 .7 .3 .3 .4 .2 .3 O ther Japan Philip pines Aus tralia All o th e r1 23.7 21.5 23.7 24.8 27.0 32.2 17.2 18.5 20.0 21.1 22.2 23.0 28.4 27.6 24.5 21.7 23.5 28.7 59.4 61.6 60.0 54.1 2 .4 1.8 BANKS AND BRANCHES □ APRIL 1974 NUMBER IN OPERATION ON DECEMBER 31, 1973 Commercial and mutual savings banks N um ber m aintaining branches or additional offices1 Commercial Commercial State Total M ember N onmember M utual savings Total Total Nonmember 14,653 14,172 4,661 In sured Nonin sured In sured 1,076 8,229 206 321 State A labam a..................... A laska......................... A rizona....................... A rkansas..................... California................... 287 12 22 258 185 287 10 22 258 185 91 5 3 72 57 176 5 11 171 109 C o lo ra d o .................... C onnecticut............... D elaw are.................... D istrict o f Columbia F lo rid a ........................ 302 136 21 15 646 302 68 19 15 646 126 24 5 12 262 G eorgia....................... H aw aii........................ Id a h o .......................... Illinois......................... In d ian a ....................... 436 12 24 1,172 414 436 12 24 1,172 410 61 2 6 417 122 Io w a ............................ K a n sa s........................ K entucky................... Louisiana................... M ain e ......................... 670 612 342 245 80 670 612 342 245 48 M aryland ................... M assachusetts........... M ichigan.................... M innesota.................. M ississippi................. 116 320 340 741 181 M issouri..................... M ontana..................... N ebraska................... N evada....................... New H ampshire N on in sured N a tional 160 5,065 4,724 1,832 In sured N on insured In sured N on in sured 480 2,392 20 246 95 State 109 8 10 109 129 109 8 10 109 129 51 5 2 46 48 53 3 7 55 70 112 41 13 2 358 33 98 11 14 46 33 48 9 14 46 15 18 2 11 16 29 7 2 45 4 74 56 360 6 14 674 229 177 9 14 168 218 177 9 14 168 217 45 1 5 88 81 2 10 24 123 6 7 70 112 100 170 80 51 19 48 26 11 10 4 513 415 250 183 21 239 79 156 144 56 239 79 156 144 35 44 34 49 39 16 21 6 7 9 4 174 39 100 96 15 112 153 340 740 181 39 79 111 201 41 7 13 95 25 7 66 56 132 511 133 79 228 229 21 128 75 125 229 20 128 30 65 83 7 36 6 13 67 2 6 39 45 78 11 86 687 151 449 8 112 687 151 449 8 82 104 54 122 4 49 67 44 9 1 1 510 51 313 3 30 183 11 50 7 51 183 11 50 7 41 40 3 28 3 30 21 5 1 1 1 122 3 21 3 10 New Jersey................. New M exico.............. New Y o rk .................. N orth C aro lin a........ N orth D a k o ta .......... 242 74 421 90 170 222 74 303 90 170 127 34 159 25 43 27 7 71 3 4 67 32 46 61 120 189 59 307 65 53 174 59 199 65 53 105 29 108 22 12 24 5 56 45 25 29 42 39 O h io ............................ Oklahom a.................. O regon....................... Pennsylvania............. R hode Island ............ 498 452 47 430 23 498 452 46 422 16 215 194 8 264 5 114 15 167 238 36 135 9 312 86 31 265 20 312 86 30 258 13 160 50 7 157 5 65 3 South C aro lin a......... South D a k o ta ........... Tennessee................... Texas........................... U ta h ........................... 91 159 321 1,266 54 91 159 321 1,266 54 19 32 72 550 11 5 28 10 40 5 67 99 235 669 37 63 42 184 82 20 63 42 184 82 20 16 10 59 2 5 3 8 6 8 3 44 24 118 72 12 V erm ont..................... Virginia....................... W ashington............... West Virginia............ W isconsin................... 45 271 96 210 624 39 271 88 210 621 22 103 24 94 127 54 5 30 34 16 114 56 86 455 29 183 58 15 186 26 183 50 15 186 13 85 17 3 41 32 3 2 9 13 66 30 10 136 W yom ing................... Puerto R ic o ............... Virgin Islands........... 71 1 1 71 1 1 42 1 1 13 16 For notes see opposite page. M utual savings Total N a tional United S tates2........... M ember 16 ‘ ‘ '2 159 118 9 1 10 87 33 23 90 6 21 108 APRIL 1974 □ BANKS AND BRANCHES A 89 NUMBER IN OPERATION ON DECEMBER 31, 1973—Continued Branches and additional offices 1 Class o f bank Location Commercial banks State Total Nonmember Member Mutual savings banks Outside head office city Total United S tates3........... N a tional State In sured Nonin sured In sured Non in sured 27,738 26,246 14,757 4,039 7,404 46 1,241 251 14 105 8 125 93 437 In head office city In head office county In In non contig contig uous uous counties counties Bank ing facili ties 2 9,561 8,533 4,999 4,645 202 199 22 129 136 460 136 5 104 83 469 14 15 52 5 681 15 26 118 1 1,748 5 5 2 2 32 34 166 29 116 47 345 62 178 38 A labam a..................... A la sk a ........................ A riz o n a ...................... A rkansas................... C alifornia................... 364 68 403 225 3,358 364 68 403 225 3,358 245 60 253 116 2,601 C o lo rad o ................... C onnecticut............... D elaw are................... D istrict o f Columbia F lo rid a ....................... 34 717 137 116 49 34 518 118 116 49 16 243 4 78 G eorgia...................... H a w a ii........................ I d a h o .......................... Illinois........................ In d ian a....................... 546 144 178 168 777 546 144 178 168 776 283 10 147 88 407 6 10 62 195 131 25 70 307 280 52 16 168 416 360 Io w a ............................ K a n sa s....................... K entucky................... L ouisiana................... M aine......................... 369 88 422 488 297 369 88 422 488 259 70 40 176 215 117 39 8 69 37 33 260 40 177 236 109 178 88 253 286 65 139 52 164 189 128 5 10 92 M aryland................... M assachusetts........... M ichigan................... M innesota................. M ississippi................. 681 1,144 1,394 25 446 634 851 1,394 24 446 302 472 654 11 181 80 159 477 2 18 252 216 261 11 247 166 522 610 25 187 163 613 524 217 8 249 126 70 M issouri..................... M o n tan a .................... N e b ra sk a ................... N evada....................... New H am pshire. . . . 201 11 55 96 110 201 11 55 96 90 45 3 33 68 73 26 5 1 15 2 130 3 21 13 15 168 10 55 26 47 31 19 51 13 12 New Jersey................ New M exico............. New Y o rk ................. N orth C arolina........ N orth D a k o ta ........... 1,315 177 3,374 1,444 72 1,244 177 2,872 1,444 72 855 96 1,517 727 12 207 13 1,180 182 68 166 708 56 305 111 1,494 175 12 684 56 882 131 37 235 9 789 283 22 O h io ........................... O klaho m a ................. O regon ....................... Pennsylvania............. R hode Island............ 1,522 86 405 2,180 292 1,522 86 401 2,052 206 856 50 282 1,205 113 418 3 666 86 85 274 68 820 33 58 825 115 71 1,079 71 191 2 38 South C aro lin a......... South D a k o ta ........... Tennessee................... T exas.......................... U ta h ............................ 544 108 657 91 168 544 108 657 91 168 345 65 330 2 89 7 11 43 9 31 192 32 283 80 48 116 20 399 90 31 71 30 242 1 52 74 24 7 283 34 9 24 61 1 18 3 V erm ont..................... V irginia...................... W ashington............... West V irginia........... W isconsin.................. 114 1,032 714 15 308 109 1,032 636 15 308 43 577 495 3 76 205 34 2 20 66 250 107 10 212 16 341 241 14 57 43 189 184 1 201 35 298 108 20 204 181 13 4 W yoming................... Virgin Islan d s........... 1 1 8 25 16 314 2 73 29 1 68 2 263 16 202 114 9 48 248 33 119 582 85 1 Excludes banks that have banking facilities only; banking facilities are shown separately; see note 3. 2 Banking facilities (other than branches) that are provided at military and other Govt, establishments through arrangements made by the Treas ury ; they are operated by 135 banks, 46 o f which have no other type of branch or additional office. 3 Includes one national bank in Puerto Rico and one in the Virgin Islands, with eight branches, that became members o f the F.R. System in 1973 and 1957, respectively. 1 199 19 38 47 42 20 71 502 4 128 86 78 251 1 18 147 37 14 40 4 32 79 51 116 12 6 1 7 1 135 1 209 855 1 1 3 N ote.—Each branch and additional office is located in the same State as its parent bank except that 1 national bank in N.J. has 1 branch in Pa., 1 national bank in Calif, has 2 branches in Wash, and 1 in Ore., 1 noninsured (unincorporated) bank in N .Y . has 1 branch in Mass. and 1 in Pa.; 3 insured nonmember banks in Puerto Rico have 18 branches in N.Y. In the table these branches are shown according to their own lo cation rather than that o f (he parent bank. A 90 BUSINESS FINANCE □ APRIL 1974 S A L E S , R E V E N U E , P R O F IT S , A N D D IV ID E N D S O F L A R G E M A N U F A C T U R IN G C O R P O R A T IO N S (In millions of dollars) 1971 Industry 1969 1970 1971 Total (170 corps.): 299,533 305,370 334,957 3/1,946 Total revenue......................... 303,257 309,532 339,134 376,604 41,164 29,266 35,771 Profits before tax es............... 34,311 19,146 21,753 Profits after taxes................... 18,830 16,556 16,436 Memo: PAT un ad j.1........ 18,335 18,020 21,233 9,962 10,024 10,104 10,538 D ividends................................ Nondurable goods industries (86 corps.):2 Sales.......................................... 138,621 Total revenue......................... 140,837 Profits before taxes............... 17,404 Profits after taxes................... 10,223 M emo: PAT un ad j.1........ 9,529 5,386 D ividends................................ 147,808 160,973 176,329 150,312 163,448 178,915 16,935 19,900 21,799 9,649 10,490 11,154 9,591 10,085 10,859 5,560 5,664 5,780 D urable goods industries (84 corps.):3 160,912 157,562 Total revenue......................... 162,420 159,220 12,332 Profits before tax es............... 16,907 8,607 6,908 Profits after taxes................... 8,806 6,845 M emo: PAT u n ad j.1........ 4,577 4,464 D ividends................................ Selected industries: Food and kindred prod. (2,8 corps.): 1972 1973 1972 IV I II III 87,214 88,317 9,709 5,031 4,373 2,581 88,349 89,452 9,715 5,212 5,162 2,538 93,853 95,271 10,467 5,674 5,687 2,598 89,550 90,803 8,978 4,936 4,490 2,525 41,887 42,382 5,438 2,672 2,409 1 ,442 42,254 42,930 5,043 2,673 2,625 1,447 43,395 44,273 4,998 2,682 2,625 1 ,430 43,865 44,689 5,278 2,852 2,574 1 ,427 46,815 47,023 6,479 2,946 3,035 1 ,476 IV I II r III 100,194 c102,932 109,967 101,078 c104,139 111,526 14,009 12,003 12,695 7,491 5,931 6,801 5,894 6,754 7,385 2,715 2,877 2,646 108,430 109,967 12,436 6,778 6,748 2,767 c47,519 c48,259 6,487 3,411 3,348 1,487 50,223 51,191 7,129 3.667 3,597 1,462 53,168 54,081 7,626 4,034 3,973 1,527 173,985 175,686 15,871 8,656 7,935 4,440 195,618 197,690 19,365 10,599 10,374 4,758 45,327 45,935 4,271 2,359 1,964 1,139 46,095 46,522 4,673 2,539 2,537 1,091 50,458 50,999 5,469 2,992 3,062 1,168 45,685 46,115 3,697 2,083 1,916 1 ,097 53,379 54,055 5,524 2,984 2,859 1,401 55,413 55,880 6,208 3,390 3,406 1,159 59,744 60,335 6,880 3,824 3,788 1,253 55,262 55,886 4,810 2,744 2,775 1,240 28,962 29,341 2,845 1 ,364 1,266 764 31,966 32,393 3,122 1,571 1,540 812 34,584 35,090 3,372 1,714 1,644 862 37,624 38,091 3,573 1,845 1,805 893 9,073 9,206 863 446 386 218 8,824 8,941 794 414 408 221 9,229 9,371 880 454 452 222 9,531 9,665 940 486 492 223 10,039 10,115 960 490 452 227 9,561 9,711 890 470 453 237 10,183 10,348 962 499 501 230 11,014 11,201 1,047 562 562 236 29,961 30,308 4,123 2,180 2,206 1,262 31,086 31,490 3,863 2,111 2,137 1,298 33,005 33,388 4,123 2,290 2,167 1,332 36,638 37,053 4,853 2,672 2,671 1,395 8,432 8,574 1,031 586 494 342 8,779 8,868 1,172 652 649 337 9,167 9,265 1,184 667 626 341 9,099 9,196 1 ,216 683 684 340 9,593 9,723 1,280 669 712 378 10,153 10,264 1,487 838 834 346 10,693 10,849 1,606 886 884 359 10,828 10,968 1,599 901 871 374 Petroleum refining (15 corps.): Sales.......................................... Total revenue......................... Profits before tax es............... Profits after taxes................... M emo: PAT u n a d j.1........ D ividends................................ 56,411 57,770 8,490 5,630 4,987 2,836 61,360 62,826 8,509 5,158 5,131 2,917 68,534 69,903 10,835 5,624 5,519 2,952 74,662 76,133 11,461 5,562 5,325 2,992 18,007 18,154 3,138 1 ,418 1 ,390 755 18,269 18,695 2,684 1 ,384 1,356 763 18,169 18,756 2,433 1,270 1,273 742 18,298 18,837 2,628 1 ,398 1,119 741 19,925 19,845 3,717 1 ,509 1 ,578 746 c20,477 c20,892 3,514 1,760 1,737 777 21,689 22,258 3,884 1,899 1,888 748 23,586 23,988 4,371 2,230 2,192 789 Primary metals and prod. (23 corps.): Sales.......................................... Total revenue......................... Profits before taxes............... Profits after taxes................... M em o: PAT u n ad j.1........ D ividends................................ 30,460 30,928 2,721 1 ,544 1,731 890 30,769 31,288 2,072 1 ,316 1,371 913 31,441 31,808 1,517 969 561 739 34,359 34,797 1,969 1,195 1,109 653 7,335 7,445 254 189 -2 1 3 162 7,848 7,931 386 247 260 162 8,886 8,984 581 372 465 161 8,525 8,629 413 274 128 162 9,099 9,253 589 302 256 168 9,635 9,733 618 383 397 200 10,784 10,891 885 542 538 178 10,602 10,764 808 480 496 184 Total revenue......................... Profits before taxes............... Profits after taxes................... M emo: PAT u n ad j.1........ D ividends................................ 44,858 45,314 5,281 2,593 2,596 1 ,165 46,486 47,028 4,885 2,566 2,477 1 ,327 49,206 49,846 5,277 2,884 2,560 1,450 55,615 56,348 6,358 3,522 3,388 1,497 13,368 13,561 1,453 806 786 366 12,939 13,102 1,416 781 774 373 13,796 13,993 1 ,550 854 848 374 13,862 14,050 1,583 870 865 375 15,018 15,203 1,810 1,017 902 375 14,828 14,997 1,705 933 931 389 16,035 16,241 1,880 1,034 1,020 401 16,306 16,519 1,936 1.069 1.070 407 M otor vehicles and equipment (9 corps.): Sales.......................................... Total revenue......................... Profits before taxes............... Profits after taxes................... M emo: PAT un ad j.1........ D ividends................................ 53,996 54,248 5,315 2,644 2,638 1,750 48,905 49,108 2,153 1 ,306 1 ,301 1,434 61,481 61,804 5,648 2,948 2,952 1,433 70,653 71,139 6,955 3,626 3,640 1,762 16,109 16,308 1,598 831 849 359 17,273 17,353 2,017 1,037 1,034 359 18,953 19,105 2,290 1,186 1,178 439 14,703 14,735 628 343 337 365 19,725 19,946 2,019 1,060 1,091 599 21,616 21,710 2,716 1,405 1,429 369 22,256 22,415 2,704 1,446 1,436 473 18,019 18,142 729 431 450 404 Total revenue......................... Profits before tax es............... Profits after taxes................... M emo: PAT u n ad j.1........ D ividends................................ Chemical and allied prod. (22 corps.): Sales.......................................... T o ta l......................................... Profits before taxes............... Profits after taxes................... M emo: PAT u n ad j.1........ M achinery (27 corps.): 1 Profits after taxes (PAT) as reported by the individual companies. In contrast to other profits data in the series, these figures reflect company variations in accounting treatment o f special charges and credits. 2 Includes 21 corporations in groups not shown separately. 3 Includes 25 corporations in groups not shown separately. N ote—D ata are obtained from published reports of companies and reports made to the Securities and Exchange Commission. Sales are net of returns, allowances, and discounts, and exclude excise taxes paid di rectly by the company. Total revenue data include, in addition to sales, income from nonmanufacturing operations and nonoperating income. Profits are before dividend payments and have been adjusted to exclude special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes, (not shown) include Federal, State and local government, and foreign. Previous series last published in June 1972 B ulletin, p. A-50. B o a rd o f G o v e r n o r s a n d S ta f f s h o w n o n fo llo w in g p a g e . A 92 BOARD OF GOVERNOFiS A r t h u r F. B u r n s , C h airm an A n d r e w F. B rimmer G e o r g e W . M i t c h e l l , V ice C h airm an Jo h n E. S h e e h a n R o ber t C. H o l l a n d O F F I C E O F M A N A G IN G D IR E C T O R Jeffrey M . B uch er H FO R O F F IC E O F B O A R D M E M B E R S O P E R A T IO N S A N D S U P E R V IS IO N D a v id C. M e l n i c o f f , M a n a g in g D ire c to r D a n i e l M . D o y l e , D e p u ty M a n a g in g D ire c to r G o r d o n B. G rim w o o d , A s s is ta n t D ire c to r a n d P rogram D ir e c to r f o r C o n tin g en cy P lan n in g W illia m W . L a y t o n , D ir e c to r o f E q u a l E m p lo ym en t B r e n t o n C . L e a v i t t , P ro g ra m D ire c to r f o r B an kin g S tru ctu re * R o b e r t S o lo m o n , A d v is e r to the B o a rd Josep h R. C o y n e , A ssista n t to the B o a rd J o h n S. R ippey, A ssista n t to the B o a rd J o h n J. H a r t , S p e c ia l A ssista n t to the B oard F r a n k O ’B r ie n J r ., S p e c ia l A ssista n t to the B o a rd D o n a ld J. W in n , S p e c ia l A ssista n t to the B o a rd L E G A L D IV IS IO N D IV IS IO N O F F E D E R A L R E S E R V E B A N K O P E R A T IO N S R o n a ld G . B u r k e , D ir e c to r E. M a u r ic e M c W h ir t e r , A s s o c ia te D ir e c to r W a l t e r A . A l t h a u s e n , A s s is ta n t D ire c to r H a r r y A . G u i n t e r , A s s is ta n t D ir e c to r Jam es R. K u d lin s k i, A s s is ta n t D ir e c to r P. D . R in g , A s s is ta n t D ir e c to r T h o m a s J. O ’C o n n e l l , G en era l C ou n sel J o h n N i c o l l , D e p u ty G e n era l C ou n sel R o b e r t S. P l o t k i n , A ssista n t G en era l C ou n sel B a ld w in B. T u t t l e , A ssista n t G e n era l C ou n sel A n d r e w F. O e h m a n n , S p e c ia l A ssista n t to the G en eral C o u n sel G r i f f i t h L. G a r w o o d , A d vise r1 en r y C. W allich O F F I C E O F M A N A G IN G D IR E C T O R F O R R E S E A R C H A N D E C O N O M IC P O L IC Y J. C h a r le s P a r t e e , M a n a g in g D ire c to r S te p h e n H. A x ilr o d , A d v is e r to the B o a rd S a m u e l B. C h a s e , J r ., A d v is e r to the B o a rd A r t h u r L. B r o id a , A ssista n t to the B o a rd M u r r a y A lt m a n n , S p e c ia l A ssista n t to the B o a rd D IV IS IO N O F R E S E A R C H A N D S T A T IS T IC S J. C h a r le s P a r t e e , D ire c to r L y l e E. G r a m le y , D e p u ty D ire c to r Jam es L. P ie r c e , A sso c ia te D ire c to r P e t e r M . K e ir , A d v is e r S t a n l e y J. S i g e l , A d v is e r M u r r a y S. W e r n ic k , A d v is e r K e n n e t h B . W illia m s , A d v is e r Jam es B . E c k e r t , A sso c ia te A d v is e r E d w a r d C. E t t i n , A sso c ia te A d v is e r R o b e r t J. L a w r e n c e , A s s o c ia te A d v is e r E l e a n o r J. S t o c k w e l l , A sso c ia te A d v is e r Jo sep h S. Z e i s e l , A sso c ia te A d v is e r Jam es L. K i c h li n e , A ssista n t A d v is e r S te p h e n P. T a y l o r , A ssista n t A d v is e r T h o m a s D . T h o m so n , A ssista n t A d v is e r L o u is W e in e r , A ssista n t A d v is e r H e lm u t F. W e n d e l, A ssista n t A d v is e r L e v o n H. G a r a b e d ia n , A s s is ta n t D ire c to r DIVISION OF DATA PROCESSING OFFICE OF THE SECRETARY C h a r l e s L. H a m p to n , D ir e c to r H e n r y W . M e e t z e , A s s o c ia te D ire c to r G l e n n L. C u m m in s, A s s is ta n t D ire c to r W a r r e n N . M in am i, A s s is ta n t D ire c to r C h e s t e r B . F e ld b e r g , S e c re ta ry T h e o d o r e E. A l l i s o n , A ss is ta n t S e c re ta ry N o r m a n d R . V . B e r n a r d , A ssista n t S e cre ta ry E li z a b e t h L. C a r m ic h a e l, A ssista n t S e cre ta ry D IV IS IO N O F P E R S O N N E L K e it h D . E n g s t r o m , D ire c to r C h a r l e s W . W o o d , A ss is ta n t D ire c to r O F F IC E O F T H E C O N T R O L L E R J o h n K a k a l e c , C o n tro lle r J o h n M . D e n k l e r , A s s is ta n t C o n tro ller D IV IS IO N O F A D M IN IS T R A T IV E S E R V IC E S W a l t e r W . K r e im a n n , D ire c to r D o n a l d E. A n d e r s o n , A ss is ta n t D ire c to r J o h n D . S m ith , A s s is ta n t D ire c to r A N D R E G U L A T IO N F r e d e r ic S o lo m o n , D ire c to r B r e n t o n C. L e a v i t t , D e p u ty D ire c to r F r e d e r ic k R. D a h l , A s s is ta n t D ir e c to r Ja ck M . E g e r t s o n , A ssista n t D ire c to r J a n e t O. H a r t , A ssista n t D ire c to r J o h n N . L y o n , A ssista n t D ire c to r J o h n T. M c C lin t o c k , A ssista n t D ire c to r T h o m a s A . S id m a n , A ssista n t D ire c to r W illia m W . W il e s , A s s is ta n t D ire c to r R a lp h C. B r y a n t , D ire c to r J o h n E. R e y n o ld s , A s s o c ia te D ire c to r R o b e r t F. G e m m ill, A d v is e r R e e d J. I r v in e , A d v is e r S a m u e l I. K a t z , A d v is e r B e r n a r d N o r w o o d , A d v is e r S a m u e l P iz e r , A d v is e r G e o r g e B. H e n r y , A sso c ia te A d v ise r H e l e n B. J u n z , A sso c ia te A d v is e r tNoRMAN S. F i e l e k e , A ssista n t A d v ise r tO n loan from the Federal R eserve Bank o f Boston. *On leave o f absence. A 93 D IV IS IO N O F S U P E R V IS IO N DIVISION OF INTERNATIONAL FINANCE A 94 FEDERAL OPEN MARKET COMMITTEE A r t h u r F. B u r n s , C hairm an A l f r e d H a y e s , V ice C hairm an R obert P. B lack G eorge H. C lay Jo h n E. S h e e h a n A n d rew F. B rimmer R obert C. H o l l a n d H enry C. W allich Jeffrey M. B ucher M o nroe K imbrel W illis J. W in n G eorge W . M itchell A r t h u r L. B r o id a , S e creta ry M u r r a y A lt m a n n , D ep u ty S e c reta ry N o r m a n d R. V . B e r n a r d , A ssista n t S ecreta ry T h om as J. O ’C o n n e l l , G en era l C ou n sel E d w a r d G. G u y , D ep u ty G en era l C ounsel J o h n N i c o l l , A ssista n t G en era l C ou n sel J. C h a r le s P a r t e e , S en io r E co n o m ist S t e p h e n H. A x ilr o d , E con om ist (D o m estic F inance) * R o b e r t S o lo m o n , E co n o m ist (In tern ation al F inance) H a r r y B r a n d t , A sso c ia te E co n o m ist R a lp h C. B r y a n t , A sso c ia te E co n o m ist R ic h a r d G. D a v is , A sso c ia te E co n o m ist R a y m o n d J. D o l l , A sso c ia te E co n o m ist L y le E. G r a m le y , A sso c ia te E co n o m ist W illia m J. H o c t e r , A sso c ia te E co n o m ist Jam es P a r th e m o s , A sso c ia te E co n o m ist Jam es L. P ie r c e , A sso c ia te E co n o m ist J o h n E. R e y n o ld s , A sso c ia te E co n o m ist A la n R. H o lm e s , M a n a g e r, S ystem O pen M a rk et A cco u n t C h a r le s A. C oom b s, S p ecia l M a n a g er, S ystem O pen M a rk et A cco u n t P e t e r D. S t e r n l i g h t , D ep u ty M a n a g e r, S ystem O pen M a rk et A cco u n t FEDERAL ADVISORY COUNCIL T h o m a s I. S t o r r s , f i f t h f e d e r a l r e s e r v e d i s t r i c t , P resid en t Jam es F. E n g li s h , J r ., f i r s t f e d e r a l r e s e r v e d i s t r i c t , V ice P resid en t G abriel H a u g e , seco nd federal RESER V E D IST R IC T R ESE R V E D IST R IC T James F. B o d in e , th ird federal RESER V E D IST R IC T G eorge H. D ix o n , n in t h federal R ESER V E D IST R IC T C lair E. F u l t z , fo ur th federal R ESER VE D IST R IC T E u g e n e H. A d a m s , t e n t h federal R ESER V E D IST R IC T L aw rence A . M e r r ig a n , sixth federal R ESER V E D IST R IC T L ew is H . B o n d , e l e v e n t h federal R ESE R V E D IST R IC T A llen P. S t u l t s , se v e n t h federal R ESER V E D IST R IC T D o n a l d E. L a s a t e r , eig hth federal H arold A . R o g e r s , tw e lft h federal R ESE R V E D IST R IC T H e r b e r t V . P r o c h n o w , S ec re ta ry W illia m J. K o r s v ik , A ssista n t S e c reta ry *O n leave of absence. A 95 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 James A. McIntosh New York............... 10045 Alfred Hayes Richard A. Debs Buffalo................ 14240 Roswell L. Gilpatric Frank R. Milliken Norman F. Beach Philadelphia ......... 19101 John R. Coleman Edward J. Dwyer David P. Eastburn Mark H. Willes Cleveland ............... 44101 Willis J. Winn Walter H. MacDonald Cincinnati ........... Pittsburgh ........... 45201 15230 Horace A. Shepard Robert E. Kirby Graham E. Marx Douglas Grymes Robert W. Lawson, Jr. E. Craig Wall James G. Harlow Charles W. DeBell Robert P. Black H. G. Pattillo Clifford M. Kirtland, Jr. William C. Bauer Gert H. W. Schmidt Edward J. Boling Edwin J. Caplan Monroe Kimbrel Kyle K. Fossum William H. Franklin Peter B. Clark W.M. Defoe Robert P. Mayo Ernest T. Baughman Frederic M. Peirce Sam Cooper W.M. Pierce James C. Hendershot C. Whitney Brown Darryl R. Francis Eugene A. Leonard Bruce B. Dayton James P. McFarland William A. Cordingley Bruce K. MacLaury M. H. Strothman, Jr. Robert W. Wagstaff Robert T. Person Maurice B. Mitchell Joseph H. Williams Durward B. Varner George H. Clay John T. Boy sen John Lawrence Charles T. Beaird Gage Holland T.J. Barlow Marshall Boykin, III Philip E. Coldwell T. W. Plant O. Meredith Wilson Joseph F. Alibrandi Joseph R. Vaughan John R. Howard Sam H. Bennion C. Henry Bacon, Jr. John J. Balles JohnB. Williams Richmond....................23261 Baltimore ................. 21203 Charlotte...................28201 Culpeper Communications Center...................22701 Atlanta ................... 30303 Birmingham........ Jacksonville ........ Nashville............. New Orleans Miami Office........ 35202 32203 37203 70161 33152 Chicago................... 60690 Detroit................. 48231 St. Louis................. 63166 Little Rock........... Louisville............ Memphis............. 72203 40201 38101 Minneapolis ........... 55480 Helena................. 59601 Kansas C ity............ 64198 Denver ................ Oklahoma City Omaha ................ 80217 73125 68102 D allas..................... 75222 El Paso................ Houston............... San Antonio........ 79999 77001 78295 San Francisco........ 94120 Los Angeles........ Portland............... Salt Lake City..... Seattle................. 90051 97208 84110 98124 Vice President in charge of branch A. A. Maclnnes, Jr. Robert E. Showalter Robert D. Duggan Gerald L. Wilson Jimmie R. Monhollon J. Gordon Dickerson, Jr. Hiram J. Honea^ Edward C. Rainey Jeffrey J. Wells George C. Guynn W. M. Davis William C. Conrad John F. Breen Donald L. Henry L. Terry Britt Howard L. Knous George C. Rankin William G. Evans Robert D. Hamilton Frederic W. Reed James L. Cauthen Carl H. Moore Gerald R. Kelly William M. Brown A. Grant Holman Paul W. Cavan A 96 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 are not accepted.) ANNUAL REPORT NIES. 1967. 29 pp. $.25 each; 10 or more to one hHHtpqq FEDERAL RESERVE BULLETIN. 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Paper ed. $4.00 each; 10 or more to one address, $3.60 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MOD ERATE FLUCTUATIONS IN HOUSING CON STRUCTION, Dec. 1972, 487 pp. $4.00 each; 10 or more to one address, $3.60 each. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS: A HISTORY, by Howard H. Hackley. 1973. 271 pp. $3.50 each; 10 or more to one address, $3.00 each. FEDERAL RESERVE BOARD PUBLICATIONS S T A F F E C O N O M IC S T U D IE S Studies and papers on economic and financial subjects that are of general interest in the field of economic research. S u m m a r i e s o n l y p r i n t e d in t h e B U L L E T IN (Limited supply of mimeographed copies of full text available upon request for single copies) EXAMINATION OF THE MONEY STOCK CONTROL APPROACH OF BURGER, KALISH, AND BABB, by Fred J. Levin. March 1973. 18 pp. OBTAINING THE YIELD ON A STANDARD BOND FROM A SAMPLE OF BONDS WITH HETEROGENEOUS CHARACTERISTICS, by James L. Kichline, P. Mi chael Laub, and Guy V. G. Stevens. May 1973. 30 pp. THE DETERMINANTS OF A DIRECT INVESTMENT OUTFLOW WITH EMPHASIS ON THE SUPPLY OF FUNDS, by Frederic Brill Ruckdeschel. June 1973. 171 pp. MORTGAGE COMMITMENTS ON INCOME PROPER TIES: A NEW SERIES FOR 15 LIFE INSURANCE COMPANIES, 1951-70, by Robert Moore Fisher and Barbara Negri Opper. Aug. 1973. 83 pp. THE IMPACT OF HOLDING COMPANY ACQUISITIONS ON AGGREGATE CONCENTRATION IN BANKING, by Samuel H. Talley. Feb. 1974. 24 pp. OPERATING POLICIES OF BANK HOLDING COMPA NIES—PART II: NONBANKING SUBSIDIARIES, by Robert J. Lawrence. Mar. 1974. 59 pp. P r i n t e d in fu ll in t h e B U L L E T IN (Staff Economic Studies shown in list below. Except for Staff Papers, Staff Economic Studies, and some leading articles, most of the articles reprinted do not exceed 12 pages.) R E P R IN T S ADJUSTMENT FOR SEASONAL VARIATION. 6/41. SEASONAL FACTORS AFFECTING BANK RESERVES. 2/58. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Ste phen H. Axilrod. 10/61. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. 7/62. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. 9/62. MEASURES OF MEMBER BANK RESERVES. 7/63. REVISION OF BANK DEBITS AND DEPOSIT TURN OVER SERIES. 3/65. RESEARCH ON BANKING STRUCTURE AND PER FORMANCE, Staff Economic Study by Tynan Smith. 4/66. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. 11/66. REVISED SERIES ON COMMERCIAL AND INDUS TRIAL LOANS BY INDUSTRY. 2/67. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. 7/67. A 97 INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE BONDS. 8/67. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. 4/68. FEDERAL FISCAL POLICY IN THE 1960’s. 9/68. BUSINESS FINANCING BY BUSINESS FINANCE COM PANIES. 10/68. HOUSING PRODUCTION AND FINANCE. 3/69. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. 8/69. EURO-DOLLARS: A CHANGING MARKET. 10/69. RECENT CHANGES IN STRUCTURE OF COMMER CIAL BANKING. 3/70. SDR’s IN FEDERAL RESERVE OPERATIONS AND STATISTICS. 5/70. MEASURES OF SECURITY CREDIT. 12/70. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. 2/71. BANK FINANCING OF MOBILE HOMES. 3/71. INTEREST RATES, CREDIT FLOWS, AND MONETARY AGGREGATES SINCE 1964. 6/71. TWO KEY ISSUES OF MONETARY POLICY. 6/71. SURVEY OF DEMAND DEPOSIT OWNERSHIP. 6/71. BANK RATES ON BUSINESS LOANS—REVISED SERIES. 6/71. INDUSTRIAL PRODUCTION—REVISED AND NEW MEASURES. 7/71. REVISED MEASURES OF MANUFACTURING CAPAC ITY UTILIZATION. 10/71. REVISION OF BANK CREDIT SERIES. 12/71. PLANNED AND ACTUAL LONG-TERM BORROWING BY STATE & LOCAL GOVERNMENTS. 12/71. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS. 2/72. WAYS TO MODERATE FLUCTUATIONS IN THE CON STRUCTION OF HOUSING. 3/72. CONSTRUCTION LOANS AT COMMERCIAL BANKS. 6/72. SOME ESSENTIALS OF INTERNATIONAL MONETARY REFORM. 6/72. CHARACTERISTICS OF FEDERAL RESERVE BANK DIRECTORS. 6/72. BANK DEBITS, DEPOSITS, AND DEPOSIT TURN OVER-REVISED SERIES. 7/72. RECENT REGULATORY CHANGES IN RESERVE RE QUIREMENTS AND CHECK COLLECTION. 7/72. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. REVISION OF CONSUMER CREDIT STATISTICS. 10/72. SURVEY OF FINANCE COMPANIES, 1970. 11/72. ONE-BANK HOLDING COMPANIES BEFORE THE 1970 AMENDMENTS. 12/72. EVOLUTION OF THE PAYMENTS MECHANISM. 12/72. REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK RESERVES AND DEPOSITS. 2/73. A 98 FEDERAL RESERVE BULLETIN □ APRIL 1974 STATE AND LOCAL BORROWING ANTICIPATIONS AND REALIZATIONS. 4/73. YIELDS ON RECENTLY OFFERED CORPORATE BONDS. 5/73. FEDERAL FISCAL POLICY, 1965-72. 6/73. SOME PROBLEMS OF CENTRAL BANKING. 6/73. OPEN MARKET OPERATIONS IN 1972. 6/73. BANKING AND MONETARY STATISTICS, 1972. Se lected series of banking and monetary statistics for 1972 only. 3/73 and 7/73. CAPACITY UTILIZATION IN MAJOR MATERIALS IN DUSTRIES. 8/73. CREDIT-CARD AND CHECK-CREDIT PLANS AT COM MERCIAL BANKS. 9/73. FINANCIAL DEVELOPM ENTS IN THE THIRD QUARTER OF 1973. 11/73. MONEY SUPPLY IN THE CONDUCT OF MONETARY POLICY. 11/73. U.S. ENERGY SUPPLIES AND USES, Staff Economic Study by Clayton Gehman. 12/73. FINANCIAL DEVELOPMENTS IN THE FOURTH QUARTER OF 1973. 2/74. REVISION OF THE MONEY STOCK MEASURES AND MEMBER BANK DEPOSITS. 2/74. TREASURY AND FEDERAL RESERVE FOREIGN EX CHANGE OPERATIONS. 3/74. RECENT DEVELOPMENTS IN THE U.S. BALANCE OF PAYMENTS. 4/74. CHANGES IN TIME AND SAVINGS DEPOSITS AT COMMERCIAL BANKS, JULY-OCTOBER 1973. 4/74. CHANGES IN BANK LENDING PRACTICES, 1973. 4/74. CAPACITY UTILIZATION FOR MAJOR MATERIALS: REVISED MEASURES. 4/74. RATES ON CONSUMER INSTALMENT LOANS. 9/73. BALANCE OF PAYMENTS ADJUSTMENT SINCE 1971. 10/73. NEW SERIES FOR LARGE MANUFACTURING COR PORATIONS. 10/73. A-99 INDEX TO STATISTICAL TABLES Acceptances, bankers’, 11, 27, 29 Agricultural loans of commercial banks, 18, 20 Arbitrage, 85 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 18, 19, 20, 33 Federal Reserve Banks, 12 Nonfinancial corporations, current, 44 Automobiles: Consumer instalment credit, 50, 51, 52 Production index, 54, 55 Bank credit proxy, 15 Bankers’ balances, 19, 22 (See also Foreigners, claims on, and liabilities to) Banks and branches, number, by class and State, 88 Banks for cooperatives, 34 Bonds (See also U.S. Govt, securities): New issues, 41, 42, 43 Yields and prices, 30, 31 Branch banks: Assets, foreign branches of U.S. banks, 78 Liabilities, U.S. banks to foreign branches, 24, 79, 80 Number, by class and State, 89 Brokerage balances, 77 Business expenditures on new plant and equipment, 44 Business indexes, 56 Business loans (See Commercial and industrial loans) Demand deposits: Adjusted, commercial banks, 13, 15, 19 Banks, by classes, 16, 19, 23 Ownership by individuals, partnerships, and corporations, 26 Subject to reserve requirements, 15 Turnover, 13 Deposits (See also specific types of deposits): Accumulated at commercial banks for payment of personal loans, 26 Banks, by classes, 16, 19, 23, 33 Federal Reserve Banks, 12, 80 Postal savings, 19 Subject to reserve requirements, 15 Discount rates (See Interest rates) Discounts and advances by Reserve Banks (See Loans) Dividends, corporate, 44, 90 Dollar assets, foreign, 67, 73 Employment, 56, 58 Farm mortgage loans, 45, 46 Federal agency obligations, 11, 12, 13 Federal finance: Receipts and outlays, 36, 37 Treasury operating balance, 36 Federal funds, 7, 18, 20, 24, 29 Federal home loan banks, 34, 35, 47 Federal Home Loan Mortgage Corporation, 49 Federal Housing Administration, 45, 46, 47, 48, 49 Federal intermediate credit banks, 34, 35 Federal land banks, 34, 35 Federal National Mortgage Assn., 34, 35, 48 Federal Reserve Banks: Condition statement, 12 U.S. Govt, securities held, 4, 12, 13, 38, 39 Federal Reserve credit, 4, 6, 12, 13 Federal Reserve notes, 12 Federally sponsored credit agencies, 34, 35 Finance companies: Loans, 20, 50, 51, 53 Paper, 27, 29 Financial institutions, loans to, 18, 20 Float, 4 Flow of funds, 62 Foreign: Currency operations, 11, 12, 67, 73 Deposits in U.S. banks, 5, 12, 19, 23, 80 Exchange rates, 83 Trade, 65 Foreigners: Claims on, 74, 75, 80, 81, 82 Liabilities to, 24, 68, 69, 71, 72, 73, 80, 81, 82 Capacity utilization, 56 Capital accounts: Banks, by classes, 16, 19, 24 Federal Reserve Banks, 12 Central banks, 84, 86 Certificates of deposit, 24 Commercial and industrial loans: Commercial banks, 15, 18, 27 Weekly reporting banks, 20, 25 Commercial banks: Assets and liabilities, 15, 16, 18, 19, 20 Consumer loans held, by type, 51 Deposits at, for payment of personal loans, 26 Loans sold outright, 27 Number, by classes, 16, 88 Real estate mortgages held, by type, 46 Commercial paper, 27, 29 Condition statements (See Assets and liabilities) Construction, 56, 57 Consumer credit: Instalment credit, 50, 51, 52, 53 Noninstalment credit, by holder, 51 Consumer price indexes, 56, 59 Consumption expenditures, 60, 61 Corporations : Profits, taxes, and dividends, 44 Sales, revenue, profits, and dividends of large manufacturing corporations, 90 Security issues, 42, 43 Security yields and prices, 30, 31 Cost of living (See Consumer price indexes) Currency and coin, 5, 9, 19 Currency in circulation, 5, 14 Customer credit, stock market, 32 Gold: Certificates, 12 Earmarked, 80 Net purchases by United States, 66 Production, 87 Reserves of central banks and govts., 86 Stock, 4, 67 Government National Mortgage Assn., 48 Gross national product, 60, 61 Debits to deposit accounts, 13 Debt (See specific types of debt or securities) Housing permits, 56 Housing starts, 57 (References are to pages A-4 through A-90 although the prefix “ A” is omitted in this index) (For list of tables published periodically, but not monthly, see page A-3) (References are to pages A-4 through A-90 although the prefix “ A” is omitted in this index) A-100 FEDERAL RESERVE BULLETIN □ APRIL 1974 Income, national and personal, 60, 61 Industrial production index, 54, 55, 56 Instalment loans, 50, 51, 52, 53 Insurance companies, 33, 38, 39, 46, 47 Insured commercial banks, 16, 18, 26, 88 Interbank deposits, 16, 19 Interest rates: Business loans by banks, 28 Federal Reserve Banks, 8 Foreign countries, 84, 85 Money market rates, 29 Mortgage yields, 47, 48, 49 Prime rate, commercial banks, 28 Time and savings deposits, maximum rates, 10 Yields, bond and stock, 30 International capital transactions of U.S., 68-82 International institutions, 66, 67, 84, 86 Inventories, 60 Investment companies, issues and assets, 43 Investments (See also specific types of investments): Banks, by classes, 16, 18, 21, 22, 33 Commercial banks, 15 Federal Reserve Banks, 12, 13 Life insurance companies, 33 Savings and loan assns., 34 Real estate loans: Banks, by classes* 18, 21, 33, 46 Delinquency rates on home mortgages, 49 Mortgage yields, 31, 47, 48, 49 Type of holder and property mortgaged, 45-49 Reserve position, basic, member banks, 7 Reserve requirements, member banks, 9 Reserves: Central banks and govts., 86 Commercial banks, 19, 22, 24 Federal Reserve Banks, 12 Member banks, 5, 6, 15, 19 U.S. reserve assets, 67 Residential mortgage loans, 31, 45, 46, 47, 48, 49 Retail credit, 50 Retail sales, 56 Labor force, 58 Life insurance companies (See Insurance companies) Loans (See also specific types of loans): Banks, by classes, 16, 18, 20, 33 Commercial banks, 15, 16, 18, 20, 25, 27, 28 Federal Reserve Banks, 4, 6, 8, 12, 13 Insurance companies, 33, 46, 47 Insured or guaranteed by U.S., 45, 46, 47, 48, 49 Savings and loan assns., 34, 47 Manufacturers: Capacity utilization, 56 Production index, 55, 56 Margin requirements, 10 Member banks: Assets and liabilities, by classes, 16, 18 Borrowings at Federal Reserve Banks, 6, 12 Number, by classes, 16, 88 Reserve position, basic, 7 Reserve requirements, 9 Reserves and related items, 4, 6, 15 Mining, production index, 55 Mobile home shipments, 57 Money market rates (See Interest rates) Money stock and related data, 14 Mortgages (See Real estate loans and Residential mortgage loans) Mutual funds (See Investment companies) Mutual savings banks, 23, 33, 38, 39, 46, 88 National banks, 16, 26, 88 National defense expenditures, 37, 60 National income, 60, 61 Nonmember banks, 17, 18, 19, 26, 88 Open market transactions, 11 Payrolls, manufacturing index, 56 Personal income, 61 Postal savings, 19 Prices: Consumer and wholesale commodity, 56, 59 Security, 31 Prime rate, commercial banks, 28 Production, 54, 55, 56 Profits, corporate, 44, 90 Sales, revenue, profits, and dividends of large manufacturing corporations, 90 Saving: Flow of funds series, 62 National income series, 60 Savings and loan assns., 34, 39, 47 Savings deposits (See Time deposits) Savings institutions, principal assets, 33, 34 Securities (See also U.S. Govt, securities): Federally sponsored agencies, 34, 35 International transactions, 76, 77 New issues, 41, 42, 43 Yields and prices, 30, 31 Silver coin, 15 Special Drawing Rights, 4, 12, 64, 67 State and local govts.: Deposits, 19, 23 Holdings of U.S. Govt, securities, 38, 39 New security issues, 41, 42 Ownership of securities of, 18, 22, 33 Yields and prices of securities, 30, 31 State member banks, 17, 26, 88 Stock market credit, 32 Stocks (See also Securities): New issues, 42, 43 Yields and prices, 30, 31 Tax receipts, Federal, 37 Time deposits, 10, 15, 16, 19, 23 Treasury cash, Treasury currency, 4, 5 Treasury deposits, 5, 12, 36 Treasury operating balance, 36 Unemployment, 58 U.S. balance of payments, 64 U.S. Govt, balances: Commercial bank holdings, 19, 23 Member bank holdings, 15 Treasury deposits at Reserve Banks, 5, 12, 36 U.S. Govt, securities: Bank holdings, 16, 18, 21, 33, 38, 39 Dealer transactions, positions, and financing, 40 Federal Reserve Bank holdings, 4, 12, 13, 38, 39 Foreign and international holdings, 12, 73, 76, 80 International transactions, 73, 76 New issues, gross proceeds, 42 Open market transactions, 11 Outstanding, by type of security, 38, 39, 41 Ownership, 38, 39 Yields and prices, 30, 31 Utilities, production index, 55 Veterans Administration, 45, 46, 47, 48, 49 Weekly reporting banks, 20 Yields (See Interest rates) BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES M in n e a p o lis ^ ________ i -------------- f 1 C .J / Omafak Labe City m m K ansas City^1 j Jt .£x>§is i r-T - -------------------- l i ______ r - o I OkfaAoma C itj\ D d llc lS ® 1 ^ , > ^ * .« r Z 0 f a * w * /^ p y 1 MemphisX j > < U W w |S \ I »*— ) ^ ><y/ / Jiauston Antonio* Miami :D ra m bt/HW. 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