Full text of Federal Reserve Bulletin : April 1975
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FEDERAL RESERVE
BULLETIN
. IN T E R N A T IO N A L
M O N ETA R Y
O PEN
TH E
IN
A
C H A N G IN G
O F M A R G IN
B A N K
S T A T IS T IC A L
IN
O P E R A T IO N S
STRU C TU R E
C H A N G ES
N EW
P O L IC Y
M A R K ET
TR A
L E N D IN G
S E R IE S
O N
IN
F IN A N C IA L E N V IR O I
1974
C R E D IT
P R A C T IC E S ,
LO A N
1974
C O M M IT M E N T S
A c o p y o f the F ed eral R eserv e B u l l e t in is sent to each m em b er bank w ith o u t ch arg e; m em b er banks d esirin g
ad d itio n al c o p ies m ay secu re them at a special $ 1 0 .0 0 annual rate. T h e reg u lar sub scrip tio n price in the
U n ited States and its p o sse ssio n s, and in B o liv ia, C an a d a , C h ile , C o lo m b ia , C o sta R ica, C u b a, D om inican
R ep u b lic, E c u a d o r, G u a tem ala , H aiti, R ep u b lic o f H o n d u ra s, M ex ico , N icarag u a, P an am a, P a ra g u a y , P eru,
El S a lv a d o r, U ru g u a y , and V e n ez u e la is $ 2 0 .0 0 per annum or $ 2 .0 0 p e r c o p y ; e lse w h e re , $ 2 4 .0 0 per annum
o r $ 2 .5 0 per co p y . G ro u p su b scrip tio n s in the U nited S tates for 10 o r m ore co p ies to one a d d re ss, $ 1 .7 5
per co p y p er m o n th , o r $ 1 8 .0 0 for 12 m onths.
T he B u l l e t in m ay be o b tain ed from th e D iv ision of A d m in istrativ e S e rv ic e s, B oard o f G o v ern o rs of the
F ederal R eserv e S y stem , W ash in g to n , D .C . 2 0 5 5 1 , and rem ittan ce should be m ade pay ab le to the o rd e r
o f the B oard o f G o v e rn o rs o f the F ed eral R eserve S ystem in a form co llectib le at p a r in U .S . cu rren cy .
(S tam p s and c o u p o n s are not a c c e p te d .)
FEDERAL RESERVE BULLETIN
NUMBER 4 □
V O L U M E 61 □
A P R IL 1975
CO N TEN TS
187 U .S . Intern ation al T ra n sa ctio n s in
197 4
A
197 M on etary P o lic y in a C h a n g in g
F in an cia l E n viron m en t: O p en M arket
O p eration s in 1 9 7 4
1 F in a n cia l and B u sin e s s S ta tistics
A
1 C o n te n ts
A
2 U .S . S ta tis tic s
A 5 8 I n te rn a tio n a l S ta tis tic s
A 8 6 B oard o f G ov ern o rs and Staff
2 0 9 T h e Structure o f M argin C redit
221 C h a n g es in B a n k L en d in g P ra c tic e s,
19 7 4
A 88 O p en M arket C o m m itte e and Staff;
F ed eral A d v iso r y C o u n c il
A 8 9 F ed eral R ese r v e B a n k s and B ra n ch es
2 2 6 L oan C o m m itm en ts at S e le c te d L arge
C o m m ercia l B an k s: N e w S tatistical
S eries
A 9 0 F ed eral R e ser v e B oard P u b lic a tio n s
A 9 2 In d ex to S ta tistica l T a b le s
2 3 0 R ecord o f P o lic y A c tio n s
o f the F ed eral O p en M arket C o m m ittee
2 4 5 L aw D ep artm en t
2 6 0 A n n o u n c em e n ts
A 9 4 M ap o f F ed eral R e se r v e S y ste m
In sid e B a c k C over:
G u id e to T abular P resen tation
S ta tistica l R e le a ses: R e fer e n c e
2 6 2 Industrial P rod u ction
E D IT O R IA L
C O M M IT T E E
J. C h a r le s P a rtee
R a lp h C . B ry a n t
L y le E . G r a m le y
J o se p h R . C o y n e
R o b e r t S o lo m o n
E liz a b e th B . S e tte
The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial committee. This
committee is responsible for opinions expressed except in official statements and signed articles. Direction for
the art work is provided by Mack Rowe.
U.S. International Transactions in
T h is a r tic le w a s p r e p a r e d in th e B a la n c e o f
P a y m e n ts S e c tio n o f th e D iv is io n o f In te rn a
tio n a l F in a n ce.
1 9 7 4
Foreign Industrial Production
Ratio scale, 1970=100
In 1974 the fo c u s o f international e c o n o m ic
p o lic y in the U n ited S tates and abroad cen tered
on the p ro b lem s o f ad ju stin g to sharply h igh er
o il p rices and o f c o p in g w ith the w o r ld w id e
c y c lic a l con traction in e c o n o m ic a ctiv ity in an
en v iro n m en t o f ex trem e price p ressu res.
In retrosp ect, it is clear that financial m arkets
in the U n ited States and abroad p roved rem ark
ab ly e la stic in ab sorb in g and r e c y c lin g the sur
p lu s fu n d s o f o il-e x p o r tin g co u n tries. O n the
other h an d , the q uadrupling o f o il p rices b y
m em b ers o f the O rgan ization o f P etroleu m E x
p orting C ou n tries (O P E C ) at the en d o f 1973
had b oth an inflationary e ffe c t o n p rices and a
d ep ressin g im p act o n e c o n o m ic a ctiv ity in m o st
industrial co u n tries. T h e in crea se in o il
p rices— w h ic h in e ffe c t am ou n ted to an e x c is e
tax c o lle c te d b y fo r e ig n g o v er n m e n ts— not o n ly
added to p rice pressu res but a lso r em o v ed pur
c h a sin g p o w er fro m co n su m p tio n c h a n n els, at
a tim e w h en the rate o f gro w th in output w a s
already slo w in g in so m e co u n tries and had b e
c o m e n e g a tiv e in oth ers. A s 1 9 7 4 p ro g ressed ,
the r e c e ssio n p ro v ed to b e m ore serio u s and
w id esp rea d in m o st co u n tries than had b een
e x p e c te d earlier. A s o f A pril 1975 r eco v ery w a s
still so m e w a y o ff e v e n th o u g h e c o n o m ic p o li
c ie s had in gen era l sh ifted tow ard ex p a n sio n and
E x ch a n g e-ra te d e v e lo p m e n ts d uring 1 9 7 4
h a v e b e en r e v ie w e d in d etail in the B u l l e t in
in S ep tem b er 1 9 7 4 and M arch 1 9 7 5 . In g en e r a l,
three m ajor p h a ses can b e d istin g u ish ed : (1 ) the
d ep recia tio n — fro m rather h ig h le v e ls in p re
v io u s m o n th s— o f th e U .S . d ollar b e tw e e n late
January 1 9 7 4 and m id -M a y , w h en h e a v y o u t
co n sid era b le pro g ress had b een m ad e in m o d
erating price rises.
flo w s o f U .S . cap ital to o k p la c e and a sy m m etri
cal in terv en tio n p o lic ie s abroad in crea sed the
T h e m o st sign ifica n t d e v e lo p m e n ts in U .S .
international tran saction s during 1 9 7 4 w ere (1 )
m arket su p p ly o f d o lla rs; (2 ) a p eriod o f
stren gth en in g fro m M a y to early S ep tem b er
1971________1972_______ 1973_______ 1974
75
* Q uarterly av erag es of m onthly prod u ctio n indexes fo r C an a d a ,
Jap a n , U nited K in g d o m , Italy, G e rm a n y , N e th erla n d s, and
F rance w eighted by sh ares in U .S . nonag ricu ltu ral e x p o rts.
D ata are from national so u rces.
a h u g e in crease in th e n et ou tflo w o f p rivate
1 9 7 4 , related in part to the reversal in capital
cap ital; (2 ) p la cem en t o f O P E C fu n d s in the
U n ited States; (3 ) an $ 1 8 b illio n jum p in the
flo w s as U .S .
in terest rates ro se rela tiv e to
fo reig n rates and in part to m arket u n e a sin e ss
arisin g fro m the d ifficu lties o f so m e E uropean
c o st o f im p orted o il; and (4 ) further stren gth en
in g in the trade p o sitio n apart from p etroleu m
banks; and (3 ) w e a k e n in g in th e d ollar rate after
im p orts.
S ep tem b er, as U .S . in terest rates d rop p ed faster
188
Federal Reserve Bulletin □ April 1975
than th o se abroad. In D e c em b e r 1 9 7 4 o n e
m easure o f the tra d e-w eig h ted a verage v a lu e o f
the U .S . dollar a g a in st th e cu rren cies o f other
G roup o f T en co u n tries p lu s S w itzerla n d
sh o w e d a d ep recia tio n o f about 2 per cen t c o m
pared w ith D e ce m b er 1 9 7 3 .
T h e S w is s franc and th e G erm an m ark appre
cia ted sharply in 1 9 7 4 , n ot o n ly a g ain st the U .S .
dollar but a lso again st other im portant curren
c ie s . T h e se ap p recia tio n s reflected co n tin u ed
large G erm an trade su rp lu ses and the m o v e m e n t
o f capital in to S w iss fin an cial a ssets and in b oth
TABLE 1
U .S . International T ra n sa ctio n s, 1 9 7 2 -7 4
In b illio n s o f d o lla rs; q u a rte rly d a ta at seaso n ally ad ju sted annual rates.
1974
Item
1972
1973
1974
Ql
-7 .0
Q2
Q3
Q4
E x p o rts ........................................................................
Im ports ........................................................................
4 8 .8
-5 5 .8
.5
7 0 .3
-6 9 .8
-5 .9
97.1
-1 0 3 .0
-.7
8 8 .8
-8 9 .5
-6 .7
9 5 .7
-1 0 2 .4
—9 .9
9 8 .9
- 1 0 8 .8
-6 .2
104.9
- 1 1 1 .1
In v estm en t in co m e, net ...........................................
R eceipts ......................................................................
P ay m en ts ....................................................................
4 .5
10.4
-5 .9
5.3
14.0
-8 .7
9 .6
2 5 .9
-1 6 .3
12.3
2 4 .5
-1 2 .2
7 .5
2 5 .5
-1 8 .0
9.1
28.1
-1 9 .0
9 .7
2 5 .6
-1 5 .9
M ilitary tra n sac tio n s, net .........................................
S ales ..........................................................................
D irect d efen se e x p en d itu res .............................
-3 .6
1.2
-4 .8
-2 .3
2 .4
-4 .6
- 2 .4
2 .7
-5 .1
-2 .3
2 .3
-4 .7
-3 .2
2.1
-5 .3
-2 .1
3 .0
-5 .1
- 2 .0
3 .2
-5 .2
Merchandise trade balance ..........................
....................................................
.1
.8
1.5
1.5
1.1
1.7
1.7
Balance on goods and services ....................
-6 .0
4.3
2.9
10.9
-1 .3
-1 .1
3.1
R em ittan ces and p e n sio n s, net .............................
U .S . G o v t, g ra n ts, n e t1 ...........................................
-1 .6
-2 .2
- 1 .9
-1 .9
-1 .8
-2 .3
-1 .6
-2 .2
-1 .9
-2 .4
- 1 .8
-2 .2
-1 .9
-2 .3
Balance on current account’ .......................
-9 .8
.4
-1 .3
- 1 .5
-1 .2
-1 .8
7.1
U .S . G o v t, c ap ital, n e t1 ...........................................
- 2 .2
-5 .6
-.5
- 5 .2
-.7
-1 .0
-3 .8
1.9
-1 .9
-1 0 .3
-5 .9
-1 7 .8
1.3
-18.7
L iab ilities ..............................................................
1.4
-3 .5
4 .9
-1 .4
-5 .9
4 .5
-3 .1
- 1 8 .8
15.7
-1 .8
- 2 1 .5
19.6
-1 7 .6
-2 9 .9
12.3
8 .0
-8 .0
16.0
- 1 .0
- 1 6 .0
14.9
S e c u ritie s, net ..........................................................
U .S . p urchases o f fo reig n secu rities ........
F oreign p u rch ases o f U .S . secu rities —
3 .9
-.7
4 .5
3.2
-.8
4.1
- .7
-2 .0
1.2
.2
-2 .6
2 .7
.4
-1 .3
1.7
-.6
- 1 .2
.6
- 3 .0
-2 .7
-.3
D irect in v e stm en t, net .........................................
U .S . in v estm en ts a b ro ad ...............................
Foreign inv estm en ts in U .S ............................
-3 .1
-3 .5
.4
- 2 .3
-4 .9
2.5
-4 .5
-6 .8
2 .3
2 .6
-2 .5
5.1
.6
-6 .1
6 .7
-8 .5
-8 .2
- .4
- 1 2 .6
-1 0 .4
-2 .2
O th er co rp o rate flow s, net .................................
A ssets ......................................................................
L iabilities ..............................................................
-.2
-1 .1
.8
-1 .4
-2 .5
1.2
-1 .9
-3 .0
1.0
-6 .8
-8 .3
1.4
-1 .3
-2 .5
1.2
2 .4
1.0
1.4
-1 .9
-2 .1
.1
L iabilities to foreign official ag en cies, net —
O f w h ich — O P E C ..................................................
O ther ..................................................
10.3
.6
9 .7
5.1
.4
4 .7
9 .5
9 .7
-.2
-3 .3
4 .0
- 7 .2
19.5
9 .6
10.0
5.3
15.6
- 1 0 .4
16.6
9 .6
7 .0
U .S . official reserve assets .....................................
A llocatio n s o f S D R ’s ................................................
E rro rs and om issio n s ................................................
(2)
.7
-1 .8
.2
- 1 .4
-.8
- 1 .4
-4 .0
.5
-2 .3
5 .2
5 .2
5 .9
3 .4
6 .4
M e m o : Official settlem en ts b alan ce ...................
10.4
- 5 .3
- 8 .1
4 .2
O th er serv ice s, net
Private capital, net ........................................
{Increase in U .S . asse ts ( —)]
R ep o rted by b a n k s, n et .......................................
-1 8 .1
-1 .3
-1 7 .1
! 1974 d a ta on c ertain U .S . in ternational tra n sac tio n s differ from p u b lished D epartm ent o f C o m m e rc e statistics because o f
ad ju stm en ts m ade to e lim in a te effects o f special tra n sac tio n s w ith In d ia, Israel, and S outh V ietnam . M ost affected by these
ch an g es w ere U .S . G o v e rn m e n t g ra n ts, U .S . G o v e rn m e n t c ap ital, and the balan ce on c u rren t account.
2 N eg lig ib le.
N o t e .— Details m ay not add to to tals b ecau se o f ro u n d in g .
U.S. International Transactions in 1974
Effective Exchange Rates o f Major Currencies
May 1970=100
German mark
E ach rate is a q u arterly a v erag e o f d aily sp o t e x ch a n g e rates
for o th er G - 10 c o u n trie s p lu s S w itz e rla n d , w eig h ted by co u n try
share in w o rld trad e o f th ese c o u n trie s. T h e G -1 0 co u n tries
are th e U n ited S ta te s, G e rm a n y , J a p a n , C an a d a , th e N e th er
lan d s, F ran c e , B elg iu m , Ita ly , S w e d e n , and the U n ited K in g
dom .
O th er effectiv e ex ch a n g e -ra te c alcu la tio n s w ith a d ifferent
n u m b er o f co u n tries a n d /o r d ifferen t w eig h tin g sch em es g ive
so m ew h at d ifferen t re su lts, b u t th e tren d s in m o st cases are
sim ilar.
ca se s o n ly lim ite d o fficial in terv en tio n in the
m arket to resist upw ard p ressu res o n e x c h a n g e
rates. T h e v a lu e o f the J ap an ese y en v is -a -v is
other m ajor cu rren cies d e c lin e d in 1 9 7 4 b ec a u se
o f extern al p a y m en ts d ifficu lties and v ery rapid
p rice in crea ses in that cou n try. B rita in ’s serio u s
e c o n o m ic p ro b lem s n o tw ith sta n d in g , large
p la cem en ts o f O P E C surplus r ev en u es in ster
lin g -d en o m in a ted a sse ts and substantial official
and sem i-o fficia l b o rro w in g b y the U n ited
K in g d o m from the E u ro-cu rren cy m arket kept
m o v em en ts in th e in ternational v a lu e o f the
B ritish p ound w ith in rela tiv e ly narrow lim its.
itated large n et a d d itio n s to U .S . private a ssets
abroad. A t the sa m e tim e , there w a s an eq u a lly
large in flow o f fo r e ig n -h e ld o fficial a ssets as the
O P E C co u n tries p la c e d m ore than $ 1 0 b illio n
o f their surplus o il r e v en u es h ere. A lth o u g h
cla ssified as o fficial tra n sa ctio n s, th e se p la c e
m en ts o f O P E C fu n d s r e sem b led private capital
flo w s in m a n y r e sp e c ts, sin c e th ey w ere not
m ad e in support o f particular e x c h a n g e rates but
rather as part o f a program for in v e stin g surplus
r ev e n u es. In a d d itio n , the large sh ift in errors
and o m issio n s fro m a n et ou tflow o f $ 2 .3 b illio n
in 1 973 to a net in flo w o f $ 5 .2 b illio n last year
m a y h a v e in clu d ed a su b stan tial u n id en tified
in flo w o f cap ital fro m abroad.
T ran saction s in secu rities sh ifted fro m a net
in flo w o f $ 3 .2 b illio n in 1973 to a n et ou tflo w
o f $ 0 .7 b illio n last y ear. T h e larg est c h a n g e
occu rred in fo r e ig n p u rch ases o f U .S . corp orate
sto c k s, w h ich d rop p ed to le s s than $ 0 .5 b illio n
fro m $ 2 .8 b illio n in 1 973 as the rate o f inflation
a ccelera ted in the U n ited S ta te s, e c o n o m ic a c
tiv ity fe ll o ff, and sto ck p rices d e c lin e d . F o l
lo w in g siz a b le p u rch a ses in the first quarter,
fo reig n net a cq u isitio n s co n tracted abruptly in
the n ex t tw o quarters, and b y th e en d o f the
year fo reig n ers had b e c o m e net se lle r s o f U .S .
corporate sto c k s. F o reig n p u rch ases o f U .S .
corporate b o n d s fe ll b e c a u se o f the n ea r-d isa p
p earance o f E u ro -b o n d is su e s b y U .S . corp ora
tio n s, w h ic h had u sed su ch is su e s to fin an ce
a p ortion o f cap ital ex p en d itu res o f affiliated
firms abroad d uring the p eriod o f co n tro ls o n
d irect in v estm en t o u tflo w s. In 1 9 7 3 , $ 1 .2 b illio n
had b een raised through su ch p la c e m en ts in the
E u ro-b on d m arket.
Comparative Interest Rates
Ratio scale, per cent per annum
C A P IT A L
FL O W S
T h e identified net ou tflo w o f private cap ital from
the U n ited S tates in crea sed to $ 1 0 .3 b illio n in
1 9 7 4 , e x c e e d in g th e net o u tflo w in the p rev io u s
year b y m ore than $ 8 b illio n . T h e rem oval o f
m andatory and v olu n tary co n tro ls o n capital
o u tflow s in January 1974— w h ic h had b een in
effect for a num ber o f yea rs— a lo n g w ith an
ea sin g o f fo reig n barriers again st in flo w s, fa c il
189
60-89 days
1973
1974
15
190
Federal Reserve Bulletin □ April 1975
T h e in crea se in U .S . p u rch ases o f fo r e ig n
secu rities a lso co n trib u ted to the sh ift to a net
ou tflow in secu ritie s tran saction s. T h e rem o v a l
in January 1 9 7 4 o f th e Interest E q u a liza tio n T a x
(IE T ) did n ot bring a su rge o f fo r eig n is s u e s ,
h o w e v e r , as rela tiv e ly h ig h interest rates in the
U n ited States g en e r a lly d isco u ra g ed b o rro w in g .
M o st o f the ex p a n sio n rep resen ted u n u su a lly
h e a v y p la cem en ts o f b o n d s b y C anadian p u b lic
au thorities and p ro v in cia l g o v ern m en ts— w h ic h
had b een ex em p t fro m the p r o v isio n s o f the IE T .
M an y o f the C an ad ian is su e s w ere related to
the fin an cin g o f la rg e -sc a le e n erg y p ro jects,
w h ich m ay h a v e b e e n ea sier to p la ce in the U .S .
capital m arket b e c a u se o f the m u ch larger ab
sorp tive cap acity o f th is m arket as com p ared
w ith the C anadian m arket. W ith th e d e c lin e in
U .S . interest rates in the final m o n th s o f 1 9 7 4
and early 1 9 7 5 , J ap an ese and E uropean issu e s
p ick ed up as w e ll, and there w ere substantial
p la cem en ts o f lo n g -term secu ritie s b y interna
tional org a n iza tio n s.
T h e net ou tflo w o n direct in v estm en t ro se to
$ 4 .5 b illio n in 1 9 7 4 , n early d o u b le the rate in
the p rev io u s year. O u tflo w s o f U .S . cap ital to
m anufacturing and other n o n p etro leu m affiliates
w ere e sp e c ia lly b o u y a n t fo llo w in g the rem o v a l
o f con trols early in th e year. N e t o u tflo w s for
th ese indu stries in crea sed from $ 3 .5 b illio n in
1973 to $ 6 .5 b illio n , w ith part o f the rise repre
sen tin g the sh iftin g o f c la im s b y U .S . p etro leu m
co m p a n ies from p etro leu m affiliates to fo r eig n
financin g affiliates. In 1 9 7 4 direct in v estm en t
ou tflow s from the U n ite d S tates a cco u n ted for
a con sid era b ly larger p ortion o f plant and
eq u ip m en t exp en d itu res abroad b y n o n p etro
leu m affiliates than the 2 3 per cen t av era g e share
recorded in 1 9 7 1 - 7 3 . C apital o u tla y s b y su ch
firm s for plant and eq u ip m en t in creased 2 0 per
w ere so m e tem porary in flo w s fro m affiliates to
parent c o m p a n ies rep resen tin g sa les receip ts
from abroad in a d v a n ce o f tax p a y m en ts to
g o v ern m en ts o f o il-p ro d u c in g co u n tries.
T h e net in flo w o f fo r e ig n d irect in v estm en t
to the U n ite d S tates am ou n ted to $ 2 .3 b illio n
last year co m p a red w ith $ 2 .5 b illio n in 19 7 3 ;
in b oth y ea rs there w ere in flo w s o f about $1
b illio n a sso c ia te d w ith the p etro leu m affiliate
ta k eo v ers referred to a b o v e . O ther fo re ig n direct
in v estm en t in the U n ite d S tates w a s $ 1 .5 b illio n
in 1 9 7 4 , about th e sa m e as in 1973 but v ery
h ig h co m p a red w ith earlier yea rs.
T h e m a g n itu d e o f in tern ation al cap ital flo w s
through U .S . b anks in 1 9 7 4 w a s u n p reced en ted .
B an k -rep orted c la im s o n fo reig n ers in crea sed b y
$ 1 8 .8 b illio n , fa cilita ted b y the rem o v a l o f the
volu n tary fo re ig n cred it restraint g u id e lin e s in
January. A t th e sa m e tim e b ank-reported lia b il
ities to fo reig n ers ro se b y $ 2 0 .9 b illio n , o f
w h ic h $ 1 5 .4 b illio n w a s to p rivate and $ 5 .5
b illio n to o fficial a c co u n ts. M o st o f the p rivate
in flow rep resen ted fu n d s ob tain ed from the
E u ro-d ollar m arket, w h ile the d irect p la cem en t
o f O P E C surplus rev e n u e s w ith U .S . b an k s
a cco u n ted for m u ch o f the official in flo w . T h e
quarterly pattern and th e g eo g ra p h ica l d istri
b u tion o f th ese flo w s are d eta iled in T a b le 2 .
T h e h ig h rate o f le n d in g a c tiv ity in the first
h a lf o f the year w a s prom p ted in large part b y
the fin a n cin g n e e d s o f the o il-im p o rtin g c o u n
tries— ou tsta n d in g cred its to Japan a lo n e rose
$ 4 .4 b illio n in th is p erio d — en a b lin g th ese
co u n tries to fin an ce o il-in d u c e d d eficits w ith o u t
red u cin g reserv es d ra stica lly . M ore than $ 1 4
b illio n o f the in crea se in fo r e ig n len d in g w a s
reported b y U .S .- o w n e d c o m m ercia l b anks and
a p p ro x im a tely $ 4 b illio n b y U .S . a g e n c ie s and
b ran ch es o f fo r e ig n b an k s.
cen t last yea r, a so m e w h a t h igh er rate o f e x
T h e se n sitiv ity o f bank flo w s to c h a n g e s in
p an sion m easu red in current d ollars than in
in terest rate d ifferen tia ls is difficult to iso la te .
T h e rapid in crea se in the first h alf o f 1 9 7 4 in
1973.
R ecord ed
p etroleu m
U .S . interest rates r ela tiv e to th o se p rev a ilin g
affiliates and b ran ch es abroad sh o w e d a net
ou tflow o f o n ly $ 0 .3 b illio n , d o w n from $ 1 .4
in E u rop e con trib u ted to a cu tback in U .S . bank
len d in g in the third quarter, w ith actual net
b illio n in 1 9 7 3 . T h e d e c lin e did not o ccu r b e
ca u se o f cu rtailed cap ital sp en d in g b y U .S . o il
rep a y m en ts o f lo a n s in A u g u st and S ep tem b er.
In the fourth quarter the rela tiv e ly faster drop
co m p a n ies but rather b e c a u se o f in flo w s a ss o
ciated w ith the partial ta k eo v er o f an affiliate
in in terest rates in th is cou n try a lso p la y e d a
role in the p ick -u p in bank len d in g and in the
b y a M id d le E ast g o v ern m en t. In a d d itio n , there
red u ction in b o rro w in g . H o w e v e r , other factors
d irect
in v e stm e n t
in
U.S. International Transactions in 1974
191
TABLE 2
C h an ges in U .S . c la im s o n , and lia b ilitie s to , fo reig n ers reported b y U .S . b anks
In m illio n s o f d o lla rs
Q2
Q3
Q4
O u t
stan d in g ,
D ec. 31,
1974
1974
Item
1973
1974
Ql
Claims, total, increase ( - ) .............................
-5,951
-18,838
-5,273
-7,507
-1,661
-4,397
45,528
-2 ,1 4 4
-8 0 8
-1 ,4 8 6
-3 5 7
-3 3 0
-2 4 1
-1 ,0 8 3
-4 6 0
-4 3 0
- 6 ,1 0 7
-1 ,8 8 4
-6 ,5 3 7
-2 ,0 7 0
-6 9 3
-8 3 0
-2 ,5 2 9
-1 ,1 2 7
- 1 ,7 8 1
-1 ,4 6 2
4 57
-1 ,4 5 5
-4 4 2
-2 8 1
-6 8
- 1 ,4 5 1
-6 5 1
-4 4 8
-2 ,9 7 6
-7 3 4
-1 ,9 1 8
-5 7 1
-4 4 8
-4 1 7
- 1 ,5 6 1
-4 2 7
-3 1 8
-1 ,5 5 0
-3 0 3
- 1 ,1 0 9
-5 9 8
-6 0
-2 7
1,346
191
-4 5
— 119
-3 9 0
-2 ,0 5 5
-4 5 9
96
-3 1 8
-8 6 3
— 2 40
-9 7 0
12,756
5,041
14,523
2 ,9 6 5
2 ,2 5 5
2 ,6 6 3
7 ,3 9 9
2 ,7 3 4
5 ,8 0 9
O f w h ich —
Jap an ........................................................ ........
O th e r A sia ....................................................
Latin A m erica .................................................
B ah am as ......................................................
B razil ............................................................
M ex ico .................................................... .
W estern E u ro p e .............................................
U nited K in g d o m .......................................
All o th er ............................................................
Liabilities,1 total, increase (+ ) .................
8,794
20,907
4,365
5,613
6,993
3,936
59,396
6 ,2 3 4
1,084
746
540
2 86
-1 ,8 2 0
3 ,5 5 4
12,277
3,451
6,3 4 2
3 ,9 5 0
6 70
888
3 ,1 2 2
2 ,7 5 4
2 ,1 9 4
398
624
1,183
-2 5 1
55
4 ,0 9 9
1,132
2 ,5 5 7
1,110
-5 2 2
-2 7 9
1,205
2 ,3 3 0
294
1,747
1,846
-2 6 6
1,000
2 ,0 8 3
3 ,0 9 4
169
1,640
370
275
418
-2 2 1
2 8 ,5 5 0
6 ,6 4 6
8 ,4 2 0
6 ,4 5 0
1,549
4 ,8 1 2
18,035
4,671
4 ,1 2 3
15,356
5,551
4 ,4 7 7
-1 1 2
4 ,2 1 5
1,398
3 ,7 4 6
3 ,2 4 7
2 918
1,018
4 1 ,2 5 3
18,143
O f w h ich —
W estern E u ro p e .............................................
U n ited K in g d o m .......................................
S w itzerlan d .................................................
O P E C ..................................................................
B aham as ............................................................
Japan ..................................................................
All o th er ............................................................
O f w h ich — to priv ate fo reig n ers
...........
to official f o r e ig n e r s ...................
'E x c lu d in g U .S . G o v e rn m e n t o b lig a tio n s.
w ere a lso at w ork in the se c o n d h a lf o f the y ea r,
e sp e c ia lly the red u ced n eed o f Japan for ex tern al
fin a n cin g , the ad op tion o f m ore ca u tio u s len d in g
p o lic ie s fo llo w in g sev era l bank fa ilu r es, and
greater d irect len d in g b y O P E C m em b ers to
o il-im p o rtin g co u n tries.
U .S . lia b ilitie s to fo r eig n official a g e n c ie s
rose b y $ 9 .5 b illio n in 1 9 7 4 co m p a red w ith $ 5 .1
b illio n in the p reced in g y ear. In the a g g reg a te,
in flo w s from the O P E C co u n tries m ore than
a cco u n ted for the total. Id en tifiab le O P E C
p la cem en ts in the U .S . cap ital m arket totaled
$ 1 0 .5 b illio n (in c lu d in g $ 0 .8 b illio n in p rivate
O P E C a c c o u n ts), le s s than o n e-fifth o f their
1974 surplus rev e n u e s. O f th is a m o u n t, m ore
than $ 6 b illio n w a s in v este d in U .S . G o v e r n
m ent o b lig a tio n s and c lo s e to $ 4 b illio n in
certificates o f d ep o sit and other m o n e y m arket
in strum ents. T h e in flo w o f O P E C fu n d s w a s
particularly h e a v y in th e third quarter as a result
o f w id esp read co n cern about the so u n d n e ss o f
national o r g a n iza tio n s and m o v e d to d iv e r sify
their in v estm en t p o r tfo lio s. C h a n g es in in terest
rate d ifferen tia ls m a y h a v e a lso con trib u ted to
the su rge in O P E C p la c e m e n ts in th e U n ite d
S tates in the third quarter and to the sla ck e n in g
in the fourth.
A lth o u g h re serv es o f n o n -O P E C co u n tries in
the U n ited S ta tes sh o w e d p ra ctica lly n o ch a n g e
for 1 9 7 4 as a w h o le , co n sid e r a b le quarterly
sh ifts to o k p la c e du rin g the y ear. In the first
and third quarters so m e co u n tries u tiliz e d d ollar
r eserv es h eld in th is cou n try to lim it cu rren cy
d ep recia tio n s. T h is d ra w d o w n w a s n early o ff
se t, h o w e v e r , b y net a d d itio n s to su ch d ollar
a sse ts b y the n o n -O P E C co u n tries in the se c o n d
and fourth quarters. T h e $ 1 .4 b illio n rise in U .S .
reserv e a ssets resu lted m a in ly from an in crea se
in the U .S . g o ld tranche p o sitio n in the Interna
tion al M on etary F und as other co u n tries d rew
d o lla rs from the F u n d .
a num ber o f E urop ean b a n k s. T h e rate o f in flow
o f o il rev en u es in to th e U n ite d S tates sla ck en ed
M E R C H A N D IS E
in the fourth quarter, as O P E C co u n tries m ad e
F o llo w in g a siz a b le su rp lu s in th e se c o n d h a lf
o f 1 9 7 3 , the trade a cco u n t sh ifted in to a b a l
m ore d irect lo a n s to o il im porters and to inter
T R A D E
192
Federal Reserve Bulletin □ April 1975
U.S. Trade
Ratio scale, billions of dollars
to the very rapid rise in U .S . im port p ric es,
e sp e c ia lly for p etr o le u m , rela tiv e to the p rices
o f ex p o rts. If record ed trade v a lu e s are adjusted
to e lim in a te p rice in c r e a se s, the U .S . trade
p o sitio n is se en to h a v e b een stronger than in
1973.
B road c y c lic a l m o v e m e n ts o f e c o n o m ic a c
tiv ity during 1 9 7 4 w ere e ss e n tia lly sim ilar in
the U n ite d S tates and m o st other m ajor c o u n
tries. H o w e v e r , the le v e lin g o ff in U .S . in d u s
40
Arithmetic scale, billions of dollars
10
+
0
10
D ept, o f C o m m e rc e d a ta at seaso n ally ad ju sted annual ra te s,
b alan ce of p ay m en ts b asis.
L atest d a ta , J a n u a ry -F e b ru a ry 1975 av erag e.
anced p o sitio n in the first quarter o f 1 9 7 4 and
into d eficits— a v era g in g m ore than $ 7 b illio n at
sea so n a lly adjusted annual rates— in su c c e e d in g
quarters. For th e year as a w h o le , the trade
deficit am ou n ted to $ 5 .9 b illio n in con trast to
a sm all surplus in 1 9 7 3 . A ll o f th is sh ift in v a lu e
term s from the p rece d in g year w a s attributable
trial output and a g g reg a te e c o n o m ic a ctiv ity
b eg a n so m e w h a t earlier than abroad. T h is d if
fe r e n c e in tim in g to g eth er w ith the cu m u la tiv e
im p a c t o f th e
1 9 7 1 -7 3
e x c h a n g e -r a te
c h a n g e s— p articularly o n ex p o rt v o lu m e s— c o n
tributed to the further stren g th en in g o f the U .S .
trade p o sitio n in the first h a lf o f 1 9 7 4 . T h e
r ela tiv e m o v e m e n ts d u rin g 1 9 7 4 in U .S . and
fo r e ig n p rices appear to h a v e had n o sig n ifica n t
e ffe c t o n the U .S . trade p o sitio n . For the y ea r,
w h o le sa le p rices fo r m an u factu res in th is
cou n try ro se at about th e sa m e rate as the
tra d e-w eig h ted a v era g e o f w h o le sa le p rices in
se v e n m ajor industrial co u n tr ies, after ad ju stin g
the latter to d ollar e q u iv a le n ts.
Wholesale Price Indexes o f Manufactured Goods
Foreign’
in dollar terms
U.S. Foreign Trade Relative to Goods Output
Per cent
Exports
per cent
RELATIVE PRICE
B ased on D ept, o f C o m m erce d a ta in co n stan t (1 9 6 7 ) d o lla rs,
seaso n ally a d ju sted .
* Q u a rte rly a v erag e s o f m o n th ly price indexes for C an a d a ,
Ja p a n , U .K ., G e rm a n y , F ran c e , N e th erla n d s, and Italy
w e ighted by shares in g ro u p ’s e x p o rts o f m an u factu red goods.
D ata are from national sources.
U.S. International Transactions in 1974
E xports
U .S . exp orts rose to $ 9 7 .1 b illio n in 1 9 7 4 . T h is
w a s an in crease o f 3 8 per cen t from the p rec e d
in g y ea r, w ith sh arp ly h ig h er p rices a cco u n tin g
for m o st o f the e x p a n sio n in v a lu e . A lth o u g h
the g row th rate in the v o lu m e o f ex p o rts d e c e l
erated from 23 per cen t in 1973 to 8 per cen t
last year, the ad v a n ce still e x c e e d e d the e x p a n
sio n in w orld ex p o rts. G reater sh ip m en ts o f
nonagricu ltu ral p rod u cts m ore than a cco u n ted
for the exp ort g ro w th last y ear.
T h e 1 9 7 4 exp o rt p erfo rm a n ce w a s b a sed on
a num ber o f fa cto rs. F irst, b a sic m aterial sh ort
a g es abroad— aggravated b y sto ck b u ild in g in
e x c e s s o f actual p ro d u ctio n n e e d s— did not e a se
sign ifican tly until m id y e a r , w h ile U .S . ex p o rts
o f lo n g lea d -tim e item s c o n tin u ed on orders that
had b een p la ced earlier. C o n tro ls o n d o m estic
p rices in the U n ite d S tates m a y h a v e p ro v id ed
an ad ditional in c e n tiv e to ch a n n el a larger share
o f output in to ex p o rts until the d ism a n tlin g o f
th ese co n tro ls w a s c o m p le te d in A p ril. S e c o n d ,
exp orts w ere stron g to the n o n -o il, d e v e lo p in g
cou n tries that had b u ilt up large financial re
serv es during the p r eced in g c o m m o d ity b o o m .
R elated to th ese tw o fa cto rs w a s the cu m u la
tiv e im p act o n U .S . c o m p e titiv e n e ss in interna
tional m arkets o f the 1 9 7 1 -7 3 cu rren cy r e a lig n
m en ts. T h e ap p reciation a g ain st the d ollar o f
the cu rren cies o f so m e p rin cip al co m p etito rs has
tilted the ratio o f U .S . to fo re ig n p rices sig n ifi
can tly in fa v o r o f the U n ited S tates sin c e 1 9 7 1 .
Partial e v id e n c e o f im p ro v ed U .S . c o m p e ti
tiv e n e ss m ay b e fo u n d in the further in crea se
last yea r, to about 2 0 per c e n t, in the U .S . share
o f w orld ex p o rts o f m an u factu res m easu red in
v o lu m e term s. T h is share had b een d e c lin in g
in the se c o n d h a lf o f the 1 9 6 0 ’s , reach ed a lo w
p oin t o f about 18 per cen t in 1 9 7 1 - 7 2 , and
b egan a slig h t uptrend in 1 9 7 3 . T h e la g g e d
reaction o f ex p o rts to e x ch a n g e-ra te ch a n g e s
w a s e x p e c te d .
A noth er factor w a s the sharp rise in ex p o rts
to the O P E C c o u n tr ie s, w h ic h reach ed an annual
rate o f m ore than $ 9 b illio n in the fourth quarter,
nearly d o u b le th e le v e l in the com p arab le
quarter o f 1 9 7 3 . B e c a u se O P E C p u rch ases from
m o st m ajor industrial co u n tries w ere a lso
193
Composition o f U.S. Nonagricultural Exports
Billions of dollars
CURRENT
CONSTANT
60
A uto m o tiv e
products
C o n su m e r
goods
12%
9%
C apital
goods
40%
II 12% f
10%
40
42%
20
Industrial
supplies
41%
38%
1973
1974
39%
36%
1973
1974
D ept, of C o m m e rc e d ata.
“ C o n sta n t” is in term s of 1967 dollars.
step p ed u p , the U .S . share in th e se im p orts d id
not ch a n g e sig n ifica n tly as 1 9 7 4 p ro g ressed .
S h ip m en ts o f cap ital eq u ip m en t and industrial
m aterials e x p a n d ed sharply last year. R eflectin g
in crea ses in b u sin e ss in v estm e n t o u tla y s abroad,
ex p o rts o f m o st ty p es o f m a ch in ery ro se through
m u ch o f 1 9 7 4 in v o lu m e term s and le v e le d off
o n ly in the final quarter. E v en th o u g h fo reig n
output w a s tap erin g o ff, c o n tin u ed sh o rta g es
abroad stim u la ted d em a n d , p articularly for e x
ports o f c h e m ic a ls, ste e l, and other m eta ls. C o a l
sh ip m en ts, m a in ly o f the m eta llu rg ica l v a rie ty ,
w ere o n a strong uptrend th rou gh ou t the year
as steel p rod u ction abroad w a s m a in ta in ed at
h ig h le v e ls .
H ig h p rices and su p p ly lim ita tio n s arisin g
from red u ced U .S . p rod u ction o f certain c o m
m o d itie s d ep ressed the v o lu m e o f agricultural
ex p o rts b y 9 per ce n t in 1 9 7 4 co m p a red w ith
the u n u su a lly h ig h le v e ls record ed in the p re
c e d in g y ear. N e v e r th e le s s, th e se ex p o rts re
m ain ed w e ll a b o v e the 1 9 7 2 total. T h e im p act
on fo reig n d em a n d o f h ig h U .S . p rices w a s
reflected in the d ra w d o w n o f alread y lo w fo o d
and feed g ra in sto c k s abroad as fo r e ig n b u yers
c a n ce le d orders in e x p ec ta tio n o f better crop s
and a co n se q u e n t drop in p rice. T h e ratio o f
w o rld sto ck s to co n su m p tio n in d ica tes the ex ten t
o f the in v en to ry d ecu m u la tio n : from the
1 9 6 5 -7 3 av era g e o f 2 4 per cen t for w h e a t, the
194
Federal Reserve Bulletin □ April 1975
U.S. Exports o f Agricultural Commodities
Ratio scale, billions of dollars
8
6
4
3
2
D ept, o f C o m m erce d a ta , seaso n ally ad ju sted .
L atest d a ta , J a n u a ry -F e b ru a ry 1975 av erag e.
ratio fe ll to about 16 per cen t last year; for
feed g ra in s it d rop p ed from 14 per cen t to le s s
than 9 per cen t.
Im p o r t s
In v a lu e term s, U .S . im p orts in creased b y 4 7
per cen t to $ 1 0 3 .0 b illio n in 1 9 7 4 . T h e quarterly
pattern sh o w ed a grad u ally d e celera tin g grow th
rate in im port v a lu e s as p rice rises m od erated
and sm all g a in s in v o lu m e g a v e w a y to slig h t
d e c lin e s in the third and fourth quarters.
A lth o u g h th e v o lu m e o f U .S . im ports d e
c lin ed slig h tly for the year as a w h o le , the drop
w a s probab ly le s s than w h at m igh t h a v e b een
ex p e c te d on the b a sis o f the rate o f e c o n o m ic
activ ity . For e x a m p le , w h ile U .S . output o f
g o o d s fe ll b y m ore than 8 per cen t from the
fourth quarter o f 1973 to the fourth quarter o f
1 9 7 4 , real im p orts sh o w e d p ra ctica lly n o
ch a n g e. T h e e ffe c t o f the 1 9 7 1 -7 3 cu rren cy
sh ifts on U .S . d em a n d for im ports a lso appeared
le ss n o ticea b le in 1 9 7 4 than in the p reced in g
year, e v e n th ou gh the cu rren cy c h a n g e s seem
to h a v e b een p a ssed through in the form o f
h igh er im port p rices. A partial ex p la n a tio n for
the fact that the v o lu m e o f im ports rem ain ed
e sse n tia lly flat du rin g m o st o f 1 9 7 4 is that
fo reig n p rod u cts, p articularly fin ish ed m a n u fa c
tures, h ave b e c o m e an im portant part o f d o m e s
portant— e le m e n t w a s the in crea se in ex p o rta b le
su p p lies abroad fo llo w in g the e c o n o m ic s lo w
d o w n and c o n tin u ed d o m e stic sh o rta g es in c e r
tain product lin e s.
T h e m o st sp ectacu lar im port d e v e lo p m e n t o f
the year w a s the rise in the c o st o f im p orted
o il fro m $ 8 .1 b illio n in 1 973 to $ 2 6 .0 b illio n .
F rom an a v era g e o f $ 3 .3 3 per barrel in 1 9 7 3 ,
the unit v a lu e o f im p orted p etro leu m and p etro
le u m p rod u cts ju m p ed to $ 1 1 .6 3 per barrel in
the se c o n d quarter o f 1 9 7 4 and fluctuated around
that le v e l for the rest o f the y ear. T h e quantity
o f im p orted o il fe ll in th e first quarter b e c a u se
o f the em b a rg o b y A rab co u n tries but reco v ered
in the se c o n d ; the first-quarter sh ortfall w a s not
m ad e up , h o w e v e r , as the in itial im p act o f h ig h
p r ice s, co n ser v a tio n p ro g ra m s, and sla c k e n in g
industrial a c tiv ity cu rtailed d em a n d . In th e s e c
on d h a lf o f 1 9 7 4 , im p orts av era g ed 6 .8 m illio n
barrels per d a y , o n ly slig h tly le s s than in the
co m p a ra b le p eriod a year earlier. T h e quantity
o f p etro leu m im p orts w a s m ain tain ed at th ese
le v e ls d e sp ite the drop in c o n su m p tio n b ec a u se
sto ck s w ere b u ilt up w h ile d o m e stic p rod u ction
c o n tin u ed to fa ll; in the fourth quarter crude o il
p rod u ction fro m U .S . w e lls w a s running 5 per
cen t b e lo w the le v e l a year earlier.
F o llo w in g an in crea se in the first quarter o f
1 9 7 4 , the v o lu m e o f n o n fu el im ports d e c lin e d
slig h tly in ea ch o f the rem a in in g quarters. C o n
sum er g o o d s , w h ic h had b een in the fo refron t
o f the im port ex p a n sio n in prior y ea rs, w ere o ff
b y m ore than 10 per cen t in v o lu m e in 1 9 7 4 ,
a d e c lin e that e x c e e d e d the drop in U .S . p er
son al co n su m p tio n ex p en d itu r e s. A u to d e liv
e rie s from th e C anadian fa c ilitie s o f A m erica n
prod u cers fe ll in 1 9 7 4 , but not so ste e p ly as
U .S . output b e c a u se a larger share o f C anadian
p rod u ction is co n cen tra ted in co m p a ct and su b
c o m p a ct m o d e ls, w h ic h a cco u n ted for a larger
share o f total au to sa le s in this cou n try. Im ports
o f cars from o v e r se a s su p p liers rose stro n g ly in
the first h a lf, but b y m id year la g g in g sa le s had
fo rced a cu tb ack in im p orts.
T h e v o lu m e o f cap ital g o o d s im ports in
c rea sed stro n g ly in the first h a lf but le v e le d off
in the third quarter b efo r e d e c lin in g in the fourth
as U .S . in v estm en t o u tla y s had b e e n red u ced
tic su p p ly and as su ch are le s s m arginal than
earlier in real term s. Im ports o f m o st industrial
in the past. A n oth er— and p o ss ib ly m ore im
su p p lie s eith er w ere flat or d e c lin e d a lo n g w ith
U.S. International Transactions in 1974
fa llin g output in th is cou n try. S te el im ports
p ick ed up sh arp ly, h o w e v e r , in the se c o n d h alf
o f the year as fo re ig n m ills o n c e again turned
to the U .S . m arket after the lo n g b o o m abroad
had su b sid ed . In a d d itio n , sh o rta g es in this
coun try co n tin u ed through the su m m er and
so m e sto c k p ilin g m a y h a v e taken p la c e in an
ticip a tio n o f a coal strike w h ic h , if p ro lo n g e d ,
w o u ld h a v e fo rc e d a cu rtailm ent in d o m e stic
steel prod u ction .
U.S. Imports o f Nonfuel Industrial Supplies
Ratio scale, billions of dollars
195
risin g share o f g ro ss in c o m e . In the final quarter,
ea rn in g s w ere red u ced as lo ca l tax rates w ere
raised and output w a s cut in an effort to m ain tain
p rices in the fa c e o f d e c lin in g w o rld d em a n d .
H o w e v e r , th is d e c lin e w a s m ore than o ffse t b y
h igh er in c o m e r e ceip ts fro m other fo r e ig n
op era tio n s o f U .S . p etro leu m c o m p a n ie s. R e
c e ip ts from m an u factu rin g and other n o n p etro
le u m d irect in v estm en t abroad in crea sed $ 0 .7
b illio n in the year.
B e c a u se receip ts o n U .S . in v e stm e n ts abroad
other than direct in v estm en t in crea sed faster
than p a y m en ts o n fo r e ig n -h e ld a sse ts in the
U n ite d S ta tes, th e u su al net o u tflo w o n th is
a cco u n t w a s red u ced slig h tly to $ 2 .8 b illio n in
1 9 7 4 . M o st o f the e x p a n sio n in b oth receip ts
and p a y m en ts reflected the m a s siv e cap ital
tran saction s b y U .S . b an k s as th ey ex p a n d ed
their fo r e ig n a sse ts w h ile p ro v id in g in v estm en t
o u tlets for p etro leu m p rod u cers. T h e e x p la n a
tio n for the faster rise in receip ts is that in terest
rates a p p lica b le to bank len d in g in crea sed faster
b e tw e e n
1973
and
1 9 7 4 than rates p aid on
fo r e ig n -h e ld a ssets in the U n ite d S ta tes. M o re
o v e r , c lo s e to o n e -h a lf o f U .S . lia b ilitie s are
in the form o f G o v ern m en t o b lig a tio n s, w h ic h
D ept, o f C o m m erce d a ta , seaso n ally ad ju sted .
L atest d a ta , Jan u a ry -F e b ru a ry 1975 av erag e.
S E R V IC E
T R A N S A C T IO N S
A lth o u g h the international se rv ic e tran sactions
o f the U n ited S ta tes— in clu d in g in v estm en t in
c o m e and m ilitary tran saction s— h a v e sh o w n a
net p o sitiv e b ala n ce for m an y y ea r s, b oth the
siz e and the in crea se in 1 9 7 4 net receip ts w ere
u n u su al. From $ 3 .8 b illio n in the p reced in g
y ear, net receip ts ex p a n d ed to $ 9 .1 b illio n . O f
this in crea se, $ 3 .3 b illio n w a s traceab le to net
in v estm en t in c o m e arisin g from the fo reig n
o p eration s o f U .S . p etroleu m c o m p a n ie s. O il
carry a su b sta n tia lly lo w e r in terest rate than
th o se a p p lica b le to bank c la im s o n fo r e ig n e r s.
A t $ 2 .4 b illio n , net p a y m en ts a sso c ia te d w ith
travel and transportation tran saction s w er e the
lo w e s t in 3 y ea rs. M o st o f the d e c lin e fro m the
p reced in g year w a s on the travel sid e as the
v o lu m e o f A m erica n tou rist e x p en d itu res o v e r
sea s w a s red u ced under the c o m b in e d im p act
o f g r o w in g r e c e ssio n at h o m e and rap id ly e s c a
latin g p rices abroad. T h e n et o u tflo w o n m ilitary
tran saction s record ed n o sig n ifica n t c h a n g e .
R E C E N T
A N D
D E V E L O P M E N T S
O U T L O O K
c o m p a n y earn in g s ju m p ed sharply in the early
A p eriod o f w e a k n e ss for the U .S . d ollar in
m on th s o f the year as h ig h in v en to ry profits w ere
e x c h a n g e m ark ets, w h ic h had b e g u n in S e p
tem ber 1 9 7 4 , co n tin u ed th rou gh th e ea rly part
recorded fo llo w in g the in crea se to $ 1 1 .6 5 per
barrel in the p o sted p rice o f lig h t A rabian crude
o f M arch 1 9 7 5 . O n e reason fo r th is d e v e lo p m e n t
o il. W h en p rices sta b ilize d at the n e w le v e ls ,
w a s the further rela tiv e e a sin g o f U .S . in terest
fo reig n earn in gs o f U .S . p etro leu m co m p a n ie s
rates, w h ich h e lp ed to in d u ce n et cap ital o u t
flo w s through b an k s and through p u rch a ses o f
le v e le d o ff as p articip ation p a y m en ts to g o v e r n
m en ts o f o il-p ro d u c in g cou n tries ab sorb ed a
fo r eig n b o n d s o ffered in the U .S . m arket. T h e
196
Federal Reserve Bulletin □ April 1975
proportion o f O P E C ea rn in g s p la c e d in d ollardom in ated a ssets w a s a lso sm aller in the fourth
quarter and early th is year than it had b een
during m o st o f 1 9 7 4 . T h e counterpart to the
d o lla r’s w e a k n e ss w a s the strong ap p reciation
o f the G erm an m ark— o n the b a sis o f co n tin u ed
large trade su rp lu ses— and o f sev era l other E u
ropean cu rren cies.
S in c e early M a rch , h o w e v e r , the international
v a lu e o f the U .S . d ollar has b een on an uptrend.
T h e narrow in g o f in terest rate d ifferen tia ls
se e m s to h a v e b e e n th e p rin cip al fa cto r, as
interest rates abroad c o n tin u ed to fa ll w h ile U .S .
rates firm ed. In m id -A p ril 197 5 the tradew e ig h ted avera g e v a lu e o f the d ollar w a s about
4 per cen t lo w e r than in M arch 1 9 7 3 , the m on th
fo llo w in g th e se c o n d d ev a lu a tio n o f the d ollar.
T h e trade b a la n ce sh ifted fro m a siz a b le d efi
cit in the fourth quarter to a sm a ll surplus in
the first 2 m on th s o f 1 975 as im p orts d ec lin e d
and exp orts co n tin u ed to rise. T h e drop in
im ports w a s w id esp rea d a m o n g n o n fu e l p rod
ucts w h ile the ex p o rt g a in cen tered in sh ip m en ts
o f farm c o m m o d itie s.
G iv e n the c o n tin u in g w e a k n e ss in e c o n o m ic
a c tiv ity in the U n ited S tates and abroad, further
d e c lin e s are e x p e c te d in the v o lu m e o f b oth U .S .
ex p o rts and im p orts. T h e sla ck in the u tiliza tio n
o f p ro d u ctiv e ca p a city in n early all industrial
cou n tries su g g e sts that p rice c o m p e titio n in in
ternational m arkets w ill b e e sp e c ia lly k een in
the p erio d ahead. A lth o u g h U .S . ex p o rts to the
O P E C co u n tries are e x p e c te d to rise stro n g ly
a g a in , the lim ited a b sorp tive ca p a city o f th ese
e c o n o m ie s w ill p rob ab ly slo w the rate o f e x
p a n sio n . In a d d itio n , the d e c lin e in farm c o m
m o d ity p r ic e s, w h ic h h as b e e n under w a y sin c e
late 1 9 7 4 , w ill p rob ab ly b e reflected in a drop
in U .S . agricultural ex p o rt v a lu e s.
T h e h u g e cap ital flo w s through U .S . b an k s
ex p e r ie n c e d last year are u n lik e ly to b e repeated
in 1 9 7 5 , a lth ou gh b an k s w ill c o n tin u e to p la y
a sign ifican t role in the in term ed ia tio n o f O P E C
rev en u e s. P articip ation b y b an k s is e x p e c te d to
d im in ish b e c a u se there w ill p rob ab ly b e m ore
d irect p la cem en t o f o il ea rn in g s w ith im p ortin g
cou n tries and a larger p rop ortion o f O P E C fu n d s
m a y m o v e in to lo n g er-term secu ritie s.
□
197
Monetary Policy in a
Changing Financial Environment
O pen
M a rk e t O p e ra tio n s
in
1974
This article is adapted from a report submitted
to the Federal Open M arket Committee by A lan
R. Holm es, M anager of the System Open M a r
ket Account and Executive Vice President of the
Federal R eserve Bank of N ew York.
F ederal R e serv e p o lic y in 1 9 7 4 acted to tem per
the co n flictin g fo r c e s o f inflation and w e a k n e ss
in real e c o n o m ic a c tiv ity . T h e F ederal O p en
M arket C o m m itte e (F O M C ) so u g h t to en su re
m oderate ex p a n sio n o f th e m on etary a g g reg a tes
to b rid ge the len g th y and d ifficult transition to
su stain ab le e c o n o m ic g ro w th . P o lic y b e ca m e
restrictive early in the year as the C o m m ittee
resp on d ed to e v id e n c e that inflationary p ressu res
w ere again g a in in g m o m en tu m and m on etary
ag g reg a tes w ere g r o w in g to o rap id ly.
A lth o u g h interest rates c lim b e d sh arp ly, fi
n an cial in stitu tio n s c o n tin u ed m e e tin g e x c e s s iv e
dem an d s for m o n e y and cred it and their d e
p en d en ce on short-term m arket b o rro w in g in
crea sed . A secu lar d e c lin e in liq u id ity in all
sectors o f the e c o n o m y b e c a m e e v e n m ore p ro
n o u n ced . P ro b lem s o f the Franklin N a tio n a l
B an k and d ifficu lties en co u n tered b y sev era l
borrow ers in refin an cin g d eb t su rfaced in the
spring and d e e p e n e d c o n cern s about c u m u la tin g
liq u id ity strains o n the fin an cial sy ste m . E x p e c
tations that deb t c o u ld b e c o m e an in crea sin g
drain on the h ealth o f the e c o n o m y as inflation
persisted in ten sified a cu tb ack in sp en d in g and
in v estm en t p lan s.
M onetary grow th d ecelera ted o v er the su m
m er, and the finan cial m arkets b eg a n to reco v er
as d em an d p ressu res abated. F in a n cia l in stitu
tio n s started to e x e r c ise restraint on their o w n ,
and restorin g liq u id ity , rather than ex p a n d in g
acted to stim u la te a resu m p tion o f m on etary
e x p a n sio n and th ereb y to p ro v id e for the re
b u ild in g o f liq u id ity .
M on etary e x p a n sio n rem ain ed q u ite rapid
o v er m u ch o f th e first h a lf o f 1 9 7 4 , but later
b e c a m e p ersisten tly slu g g ish . T h e narrow ly d e
fined m o n e y sto c k (M x)— d efined as private d e
m and d e p o sits p lu s cu rren cy in circu la tio n — in
crea sed b y 4V2 per cen t o v er the y ea r, w e ll
b e lo w the 9 per cen t and 6 per cen t rates
e x p e rie n c e d in 1 9 7 2 and 1 9 7 3 , r e s p e c tiv e ly .1
R eco rd -h ig h in terest rates o n m arket in strum ents
cut in to tim e and sa v in g s d e p o sit flo w s o v er a
g o o d part o f the year. M 2— M x p lu s co m m ercia l
bank tim e and sa v in g s d ep o sits other than
la rg e-d en o m in a tio n
certificates
of
d e p o sit
(C D ’s)— g rew at a IV 2 per cen t rate, d o w n from
9 per cen t the year b efo r e. G row th in the cred it
p ro x y — total d e p o sits p lu s n o n d ep o sit lia b ilitie s
at m em b er b an k s— at just o v er 10 per cen t w a s
a sh ad e slo w e r than in recen t years d u e to a
very p ro n o u n ced d e c ele ra tio n as the year d rew
to a c lo s e . B a n k cred it— total lo a n s and in v e s t
m en ts at all c o m m e rc ia l b an k s— sh o w e d a sim i
lar pattern and a ctu a lly con tracted in the final
quarter.
T h e m on etary a g g reg a tes rem ain ed a central
fo c u s o f p o lic y fo rm u la tio n and im p lem en ta tio n
o v er 1 9 7 4 as th ey h a v e for the past 5 yea rs.
T h e C o m m ittee c o n tin u ed to fram e its lo n g errun o b je c tiv e s for the a g g reg a tes w ith referen ce
to c h a n g in g a sse ssm e n ts o f the e c o n o m ic and
financial situ ation .
In 1 9 7 4 , p o lic y m a k er s w ere co n fro n ted w ith
the n eed to a llo w for im portant c h a n g e s in bank
and corporate b eh a v io r. T h e fin an cial sy ste m
b o rro w in g , b eca m e the fo c u s o f atten tion . A s
inflationary p ressu res m od erated and sig n s o f
gen era lized e c o n o m ic w e a k n e ss appeared, the
C o m m ittee in the c lo s in g m on th s o f the year
1 Growth rates for all measures in the introduction
use data that incorporate revisions made in January
1975. The data used in describing operations during the
year are those available at the time.
198
Federal Reserve Bulletin □ April 1975
had b een adapting to a p ro lo n g ed p eriod o f
inflation and to the in ten se co m p e titio n for fu n d s
that it gen erated . B u t th ese ad ju stm en ts reach ed
a p oin t in 1 9 7 4 w h ere th ey strained the ca p a b il
ity o f the fin an cial m ec h a n ism to fu n ctio n . T h e
tra n sm issio n o f m on etary p o lic y in a c h a n g in g
financial en v iro n m en t p ro v id es the settin g for
u nderstanding m on etary d ev e lo p m e n ts o v er the
year.
T H E
F IN A N C IA L
E N V IR O N M E N T
S IN C E
1970
T h e F ederal R e se r v e has c o n tin u a lly grap p led
w ith the p ro b lem s o f a c h ie v in g its p o lic y o b je c
tiv es in a d y n a m ic e c o n o m ic settin g . In recen t
y ea rs, the S y ste m h as so u g h t to im p lem en t its
g o a ls for the e c o n o m y b y targetin g th e lo n g errun grow th o f the m o n etary a g g r eg a te s, p articu
larly M x but a lso in clu d in g broader m ea su res.
T h is e m p h a sis has gen erated co n sid era b le d is
cu ssio n o n h o w p o lic y in strum ents sh o u ld b e
u sed to a c h ie v e in term ed iate m o n e y and credit
grow th o b je c tiv e s and o n the rela tio n sh ip s b e
tw een th ese m o n eta ry a g g reg a tes and the e c o
n om ic variab les that p o licy m a k e rs see k u lti
m ately to in flu en ce. T h e S y ste m im p acts o n its
aggregate o b je c tiv e s and u ltim ate g o a ls w ith a
lag through the fin an cial m ark ets, w h o se c h a n g
in g structure reflects th e resp o n se o f in stitu tio n s
to e c o n o m ic d e v e lo p m e n ts and to the S y s te m ’s
p o lic ie s . A n u n d erstan d in g o f the role o f the
aggrega tes in th is in tera ctiv e p r o cess is cru cial
to the settin g o f p o lic y instrum ents and o b je c
tiv e s.
T h e F O M C p u rsu es its a g g reg a tiv e o b je c tiv e s
prim arily through its in stru ction s to the M an ager
o f the S y stem
O p en
M arket A cc o u n t.
The
M anager translates th ese in to w e e k ly and d a ily
d e c is io n s affectin g bank reserv es that reflect the
con cern o f the F O M C w ith the u n fo ld in g b e
havior o f the a g g reg a tes. Im portant in stitu tion al
and structural c h a n g e s o v er th e past 5 years h a v e
a ffected im portantly the tra n sm issio n m e c h a
1 9 7 0 and 1 9 7 3 , g a v e b an k s the a b ility to m eet
g ro w in g cred it d em a n d s. B a n k s w ere ab le to
en h a n ce their c o m p e titiv e p o sitio n b y ex te n d in g
lo a n co m m itm en ts and lin e s o f cred it, thereby
a cco m m o d a tin g en la rg ed b u sin e ss d em an d s
during u p sw in g s in b u sin e ss a c tiv ity . T h e ab ility
o f b u sin e ss to ob tain su ch lin e s at b anks p ro
v id ed a fo u n d a tio n for the a d d ition al grow th o f
short-term b o rro w in g in the co m m e r cia l paper
m arket.
A s the c o st o f issu in g C D ’s varied and b u si
n e ss b o rro w in g b e c a m e m o re r e sp o n siv e to in
terest rate d ifferen tia ls, th e prim e rate o f b an k s
b eg a n to resp o n d faster to ch a n g in g m arket-rate
patterns. S o m e b anks ad op ted a p ractice o f
relatin g their len d in g rate to short-term m arket
rates an d , in g e n era l, lo a n term s adjusted m ore
q u ic k ly . T h e en h a n ced ab ility o f b oth b an k s and
b u sin e ss to m ee t fin an cin g n e e d s, alb eit at p o
ten tia lly in crea sin g c o s ts , m a d e th em w illin g to
perm it their liq u id ity to d eteriorate. A s a resu lt,
the rela tio n sh ip b e tw e e n the siz e o f the ca sh
b a la n ces and the le v e l o f ex p en d itu res w a s a l
tered. T h is w a s reflected in variation s in the
v e lo c ity o f m o n e y and in th e d iv e r g e n ce b e
tw e e n th e g ro w th o f cred it and the m o n e y sto ck
o v er the past sev era l y ea rs.
Inflation and its attendant p ressu res o n sh ort
term in terest rates a lso im p a cted o n credit flo w s.
A s the upw ard p rice trend b ec a m e im b ed d ed in
in v esto r e x p e c ta tio n s, in v esto rs sh o w e d so m e
relu ctan ce to c o m m it fu n d s to lo n g -term se c u r i
tie s. T h e in crea sed d e p e n d e n c e o f borrow ers o n
short-term m arkets con trib u ted to the illiq u id ity
o f the e c o n o m y .
S ecto rs p rim arily d ep en d en t on lo n g -term
fin a n cin g — m o st n o ta b ly h o u sin g and c o n
struction— e x p e r ie n c e d
particular
d iffic u lty .
T h is p rob lem w a s a ccen tu a ted as in d iv id u a ls
w ere attracted to h ig h rates o f return on o p en
m arket in stru m en ts, at sev era l sta g e s, and fu n d s
w ere d iv erted from b an k s and thrift in stitu tio n s.
B u t in d iv id u a ls b e c a m e le s s liq u id w h en their
sa v in g s w ere put in to m arket in stru m en ts, sin ce
su ch c o m m itm en ts are o ften difficult to reverse
n ism set in m o tio n b y the S y s te m ’s op era tio n s.
in co m p a riso n w ith d ra w in g d o w n a d e p o sit.
T h e credit m arket en v iro n m en t has b e c o m e
T h is sh o w e d up in the s lo w g row th o f M 2 and
M 3— M 2 p lu s d e p o sits at sa v in g s and lo a n a ss o
d om in ated b y bank e m p h a sis o n lia b ility m a n
agem en t. T h e su sp en sio n o f R eg u la tio n Q c o n
straints on large C D ’s , in tw o sta g es b e tw e e n
cia tio n s and m utual sa v in g s b a n k s— for certain
e x ten d e d p erio d s o v er th e p ast 5 yea rs.
Monetary Policy in Changing Environment
199
T h e im p o sitio n o f w a g e and p rice co n tro ls
in different form s a lso affected the fin an cial
atm osp h ere. Interest rates drop p ed sharply im
m ed ia tely after th e a n n o u n cem en t o f co n tro l
m easu res in A u g u st 1 9 7 1 . In the e n su in g
m o n th s, d em an d s for cred it and m o n e y ab ated ,
g iv e n the red u ced n eed to m ak e ex p en d itu res
in an ticip ation o f risin g p ric e s.
difficu lty in ad ju stin g their d o m e stic p o lic ie s
a d eq u a tely for th e rapid in tern a tio n a liza tio n o f
the m o n e y and cap ital m arkets and th e attendant
g row th o f intern ation al cred it th rou gh ou t m u ch
A s sh ortages o f g o o d s e m e r g e d , h o w e v e r ,
credit d em an d s reb ou n d ed and th en accelera ted .
T h e slo w rise o f th e p rim e rate o v er m u ch o f
1 9 7 3 , partly in resp o n se to efforts b y the C o m
m ittee o n Interest and D iv id e n d s to tem per in
F O R M U L A T IO N
crea ses in ad m in istered in terest rates, brought
w ith it a rapid esc a la tio n in b u sin e ss b o rro w in g
at b an k s. B a n k s resp o n d ed b y scra m b lin g to
raise fu n d s in th e C D m arket and rates on th ese
instru m ents c lim b e d . For a tim e , the rise in
C D ’s o u tp aced the e x p a n sio n o f other fin an cial
instrum ents and the c o m p o sitio n o f cred it in the
e c o n o m y w a s sk e w e d tow ard b an k s. T h e S y s
tem u n d ertook to tem p er bank cred it e x p a n sio n
in 1973 b y p la cin g m argin al reserv e req u ire
m en ts on C D ’s for the first tim e.
T h e ex p a n sio n o f fo r e ig n cred it m arkets and
their in crea sed in tern a tio n a liza tio n a lso c h a n g ed
the co u rse o f cred it flo w s in the d o m e stic e c o n
o m y . L arge m u ltin a tio n a l firm s w ere ab le to
sh ift their ca sh b a la n ces and fin an cin g d em a n d s
from m arket to m arket in resp o n se to in terest
rate d ifferen tials and to ch a n g in g e x p e c ta tio n s
about e x c h a n g e rates. T h e risin g standard o f
liv in g in fo reig n co u n tries p la ced greater d e
m an d s on m an y d o m e stic se c to r s, su ch as agri
culture.
T h e g row th o f fo re ig n b a n k in g in stitu tio n s in
the U n ited S tates and the e x p a n sio n o f d o m estic
banks abroad e x te n d ed c h a n n e ls o f sp ecu la tio n
am o n g m o n e y m ark ets. E p iso d e s o f in ten se
sp ecu la tio n aga in st v a rio u s cu rren cies w ere
o ften financed b y b o rro w ed fu n d s and co n trib
uted to accelera ted cred it g ro w th . T h e liftin g
o f the V olu n tary F o reig n C redit R estraint p ro
gram in th is cou n try en co u ra g ed a further e x
p an sion o f international d ollar and fo reig n cu r
ren cy len d in g . T h e E u ro-d ollar m arket, w h ic h
is not su b ject to th e d irect con trol o f any central
b an k , ex p a n d ed and b e c a m e m ore integrated
o f the p erio d .
SY ST E M
S IN C E
P O L IC Y
1970
M o n eta ry p o lic y e x erts its d y n a m ic in flu en ce o n
the financial e n v iro n m en t and th e e c o n o m y
through its im p a ct o n the e x p e c ta tio n s o f
h o u se h o ld s, b u sin e s s e s , and fin an cial in stitu
tio n s. T h eir b eh a v io r in teracts w ith th e S y s
te m ’s m on etary and regu latory sta n ce to d eter
m in e the co u rse o f the m on etary a g g reg a tes and
the e c o n o m y . T h e S y s te m ’s e m p h a sis o n a g g r e
g a te targetin g in recen t years h as itse lf b e en o n e
o f the in stitu tio n a l c h a n g e s a ffe c tin g the g e n e r
ation o f e x p e c ta tio n s a m o n g e c o n o m ic u n its.
T h e S y ste m h as sp ecified o b je c tiv e s for the
m on etary and cred it m ea su res as a m e a n s o f
q u a n tify in g the lev e r a g e it w ish e s to e x ert o n
the e c o n o m y . T h e e x p e r ie n c e a ccu m u la ted from
targetin g the a g g reg a tes h as le d th e C o m m itte e
to fo c u s o n lon ger-ru n g ro w th targets for th e
ag g reg a tes o n th e grou n d s that tem porary aber
rations in m on etary e x p a n sio n w e r e lik e ly to
h a v e n e g lig ib le e ffe c t o n the c o u rse o f e c o n o m ic
a ctiv ity . T h e C o m m itte e has a lso refined the
w a y it g iv e s in stru ctio n s to the M an ager.
E v id e n c e illu strated the lo n g and variab le la g
b etw e e n S y stem a ctio n and th e b eh a v io r o f the
a g g reg a tes. S ev era l e c o n o m e tric m o d e ls sh o w e d
that ch a n g e s in short-term in terest rates ex erted
m o st o f their in flu en ce o n m o n e y d em a n d o n ly
after a num ber o f m o n th s. E stim a tes sh o w e d
that the siz e o f th e im p a cts and th e len g th o f
the la g w ere variab le w ith resp ect to c h a n g e s
in n o n b o rro w ed rese r v e s and th e F ed eral fu n d s
rate. S h ifts in th e u n d erly in g fin an cial structure
c o u ld a lso a ffect the b eh a v io r o f the m o n e y
su p p ly . T h ere w a s g r o w in g u n d erstan d in g o v er
tim e o f the d ifficu lty o f fo r e c a stin g accu ra tely
the im p act o f a particular op era tio n a l strategy
w ith the d o m e stic fin an cial m arkets. In g en era l,
o n M x and th e other a g g reg a tes.
T h e C o m m itte e sin c e 1 9 7 0 h as tried alterna
national m on etary au th orities
tiv e m ea n s o f fo rm u la tin g its m o n th ly in stru c
m ay h a v e had
200
Federal Reserve Bulletin □ April 1975
tio n s to the M a n a g er .2 A b a sic part o f its in
stru ctions d escrib ed h o w the M an ager sh o u ld
resp on d to in c o m in g data o n th e a g g reg a tes.
S o o n after its m o v e to a g g reg a te ta rg etin g , the
C o m m ittee adop ted w e e k ly and m o n th ly track
in g paths to b e u se d as referen ce p o in ts again st
w h ic h strength or w e a k n e ss in the m ea su res
co u ld b e g a u g e d . T h e se paths w ere d e sig n e d to
b e c o n sisten t w ith the F O M C ’s lon ger-ru n a g
gregate o b je c tiv e s, alth o u g h the M an ager o ften
had to a llo w for u n an ticip ated d e v e lo p m e n ts that
co u ld affect the short-run b eh a v io r o f the va rio u s
m easu res.
In early 19 7 2 the F O M C b eg a n to sp e c ify
accep tab le ran ges for reserv es ag a in st private
d e p o sits (R P D ’s) as a m ea n s o f fo ste r in g the
d esired grow th in the a g g reg a tes. T h e ran ges
d escrib ed grow th in th is variab le o v er the m on th
o f the m eetin g and the e n su in g m o n th . T h e
C o m m ittee fo u n d , h o w e v e r , that the actual re
lation sh ip b etw e e n R P D ’s and M x o ften fa ile d
to d e v e lo p as e x p e c te d , at lea st in the tim e
period from o n e m e e tin g to the n ex t. A s a resu lt,
the C o m m ittee and the M an ager grad u ally c a m e
to p la ce m ore em p h a sis on u n d erly in g d ep o sit
beh avior as a g u id e for the M a n a g er’s resp o n se.
T h e R P D ex p erim en t en co u ra g ed the F O M C to
adopt 2 -m o n th to lera n ce ran ges for M 1 and M 2
tow ard the en d o f 1 9 7 2 and th ese w ere still
b ein g u sed 2 years later.
In its op eration al in stru ctio n s, the C o m m ittee
has tended to p la ce the m o st e m p h a sis o n M 1,
alth ou gh b y the en d o f 1 9 7 4 this em p h a sis w a s
c o m in g under q u e stio n . A t the sa m e tim e , the
F O M C has gu id ed the ex te n t and the tim in g o f
the M a n a g er’s resp o n se to in co m in g data to
a llo w for financial m arket d e v e lo p m e n ts and
other p o lic y co n sid er a tio n s. T h e C o m m ittee at
its m eetin g s h as o fte n w id e n e d the to lera n ce
ranges for the a g g reg a tes b y raisin g or lo w e r in g
intent. T h is approach serv ed to a v o id gen era tin g
m arket rea ctio n s to d a y -to -d a y p o lic y im p le
m en tation that w o u ld b e ou t o f step w ith the
lon ger-ru n d irectio n o f p o lic y .
T h e M an ager reacted to n e w in form ation o n
the a g g reg a tes b y alterin g su p p lies o f n o n b o r
ro w ed re serv es in a w a y that p rod u ced an or
d erly rise or fa ll in the F ed eral fu n d s rate. O ver
the p eriod b e tw e e n F O M C m e e tin g s, p e r m issi
b le variation in the F ed eral fu n d s rate w a s
con strain ed b y the F O M C — a lth ou gh the a llo w
ab le ran ge c o u ld b e , and o fte n w a s, a m en d ed
b e tw e e n m e e tin g s. T h e d irectio n and ex ten t o f
the ch a n g e in the fu n d s rate w ere g o v e r n e d b y
the o b se r v e d b eh a v io r o f the a g g reg a tes rela tiv e
to their d esired b eh a v io r and b y c o n d itio n s in
the fin an cial m ark ets. T h e ab ility o f the M an ager
to vary the nature o f r e se r v e -su p p ly in g o p era
tio n s m arked an e x te n sio n o f the sp ecific a tio n s
in the p r o v iso -c la u se fo rm o f the d ire c tiv e u se d
from 1 9 6 6 through 1 9 6 9 , w h ic h p ro v id ed for
a resp o n se to d e v e lo p m e n ts in v a rio u s a g g r e
g a tes in the p erio d s b e tw e e n m e e tin g s.
O ver the years sin c e 1 9 7 0 , the C o m m itte e h as
o ften m ad e roo m for greater variation in th e
fu n d s rate o v er a m on th to p ro m o te the
a c h ie v e m e n t o f its o b je c tiv e s for th e a g g reg a tes.
G ro w in g a w a ren ess o f th e S y s te m ’s e m p h a sis
on the a g g reg a tes and o f th e M a n a g er ’s r esp o n se
to in c o m in g in fo rm a tio n b eg a n to h a v e an im
portant im p act o n e x p e c ta tio n s in th e e c o n o m y .
F in a n cia l m arket particip an ts b eg a n to fo llo w
the b eh a v io r o f the m o n e y su p p ly in fo rm in g
their a n ticip a tio n s o f in terest rate m o v e m e n ts.
T h e y lo o k e d to th e F ed eral fu n d s rate for c o n
firm ation o f e x p e c ta tio n s about S y stem actio n .
T H E
F IN A N C IA L
o n e o f the b o u n d s, so th e M a n a g er’s resp o n se s
A N D
w o u ld rem ain c o n siste n t w ith u n d erly in g p o lic y
1974— O P E N
M O N E T A R Y
M O N E T A R Y
P O L IC Y
IN
M A R K E T
O P E R A T IO N S
2 Alan R. Holmes, articles on open market operations
in 1971, 1972, and 1973, Federal Reserve B u l l e t i n s ,
April 1972, pp. 340-62; June 1973, pp. 405-16; and
May 1974, pp. 338-50, respectively. For the year 1970,
Paul Meek and Rudolf Thunberg, “ Monetary Aggre
gates and Federal Reserve Open Market Operations,”
Monthly Review, Federal Reserve Bank of New York,
April 1971, pp. 80-89.
SY ST E M
A N D
A N D
T H E
C R E D IT
A G G R E G A T E S
E v e n ts in 1 9 7 4 put the a b ility o f financial in sti
tu tion s to adapt to ch a n g in g c ircu m sta n ces to
a sev e re test. T h e alread y o v er e x ten d e d finan
cia l sy ste m w a s co n fro n ted w ith in ven tory fi
Monetary Policy in Changing Environment
n an cin g and other cred it d em a n d s in an a tm o s
phere o f intern ation al sca rcities o f m aterials and
sharply h igh er p r ice s. M o n eta ry p o lic y so u g h t
to d eal w ith p o in ts o f p ressu re w ith o u t rela x in g
its efforts to restrain th e u n d erly in g fo r c e s o f
inflation that w e re c a u se s o f fin an cial strain.
L ater, as recessio n a ry te n d e n c ies b eg a n to c u
m u la te, the S y ste m b e ca m e w illin g to support
the reb u ild in g o f liq u id ity n ee d e d for h ea lth y
e c o n o m ic g row th . T o h ig h lig h t sign ifican t d e
v e lo p m e n ts in 1 9 7 4 , th e fo llo w in g d is c u ssio n
o f p o lic y and the fin an cial sy ste m sep arates the
year in to three c h r o n o lo g ic a l se c tio n s.
Ja n u a r y - M
arch
T h e o u tlo o k for th e e c o n o m y w a s m urky w h e n
the year b eg a n . T h e o il em b a rg o w a s p ro d u cin g
fu e l sh ortages and w o r k in g to red u ce real e c o
n o m ic a ctiv ity . S ev era l secto rs o f the e c o n o m y ,
in clu d in g h o u sin g and durable g o o d s , appeared
w ea k . S ca rcities o f n e e d e d m aterials w ere ad d
in g to in flation and cu rta ilin g output in other
in d u stries. R esp o n d in g to th is o u tlo o k , the
C o m m ittee in clu d ed a slig h tly h igh er rate o f M t
grow th in its lon ger-ru n o b je c tiv e s for the a g
g reg a tes and d e c id e d that th e M an ager sh o u ld
se e k a slig h t e a sin g o f m o n e y m arket c o n d itio n s
201
o f M 2 and R P D ’s ro se to near the upper b ou n d s
o f their re sp e c tiv e ra n g es. T h is ord in arily w o u ld
h a v e p rom p ted th e M an ager to p erm it the fu n d s
rate to rise to the 9Vi per cen t top o f its range
o f variation . H o w e v e r , w ith the p u b lica tio n o f
s u c c e s s iv e w e e k ly M x b u lg e s in F eb ru ary, the
fin an cial m arkets had b e c o m e v ery a p p reh en siv e
about the lik e lih o o d o f a reversal o f th e S y s
te m ’s interest rate p ostu re.
T h e F O M C a greed o n M arch 1 that reserv e
op era tio n s sh o u ld b e co n d u c te d in a m anner
c o n siste n t w ith m a in ten a n ce o f the fu n d s rate
around 9 per c en t. B u t 10 d a y s later, w h en
a d d ition al data sh o w e d that rapid m on etary
g ro w th w a s p e r sistin g , the fu ll ran ge for the
fu n d s rate w a s restored th o u g h th e M an ager w a s
in stru cted to p r o ceed v ery c a u tio u sly in re
strain in g reserv e g ro w th . B y th e M arch F O M C
m e e tin g , the fu n d s rate had risen to about 9 .3 5
per cen t and w a s a p p roach in g th e le v e l that had
p rev a iled just b e fo r e the start o f the year.
In the fin an cial m a rk ets, e x p e c ta tio n s that the
o il sh ortage w o u ld sig n ifica n tly w ea k e n the
e c o n o m y w e r e q u ite p ro n o u n ced w h en 1 9 7 4
b eg a n . W h ile the rapid 8 .7 per ce n t m o n e y
su p p ly g ro w th o f the final quarter o f 197 3 had
b een so m e w h a t w o r r iso m e , short-term credit
u n le ss grow th in th e a g g reg a tes appeared
stronger than e x p e c te d . T h e sa m e o b je c tiv e for
d em a n d s w ere m o re m od erate than earlier in that
y ear. B a n k s started to reb u ild h o ld in g s o f s e
cu rities in e x p e cta tio n o f a le s se n in g o f m o n e
M j in th e first h a lf o f the year w a s retain ed in
F ebruary, and th e F O M C at b oth m e e tin g s s p e
cified 2 -m o n th to lera n ce in tervals for the a g g r e
g a tes that w ere a sso c ia ted w ith p r o g r e ssiv e ly
lo w er ran ges for the F ed eral fu n d s rate.
W h ile the M an ager had m a d e little c h a n g e
in h is approach to reserv e m a n a g em en t in the
o p en in g w e e k s o f the y ea r, h e m o v e d prom p tly
to attain so m e e a sin g o f m o n e y m arket c o n d i
tio n s sh ortly after the January F O M C m e e tin g .
tary restraint. T h e prim e rate w a s adjusted
d o w n w a rd late in January, and it fe ll b y 3A
p ercen ta g e p o in t to 834 per cen t o v er th e n ex t
4 w e e k s. B u t it la g g e d d e c lin e s in o p en m arket
rates, and b o rro w in g d em a n d s at b an k s thus
d ecele ra ted .
B u sin e s s and fin an cial m arket particip an ts
w ere g e n era lly an ticip a tin g in terest rate d e
c lin e s , and there w a s so m e m o v e to refund
short-term lia b ilitie s b y b o rro w in g in th e cap ital
T h e se m o v e s w ere in ten sified w h en it in itia lly
se e m e d that M x and R P D ’s w o u ld fa ll b e lo w
m arkets. A d ow n tren d in rates b e c a m e e sta b
lish e d b y the en d o f January as the T rad in g
their D e c e m b er-F e b r u a r y ran ges o f to lera n ce.
D e s k ’s m o v e s to su p p ly n o n b o rro w ed reserv es
B y early February F ed eral fu n d s w ere trading
at 8% per cen t to 9 per ce n t and the e ffe c tiv e
m ore rea d ily b e c a m e e v id e n t and as a n early
3 per cen t d e c lin e in M t for that m on th w a s
rate had d e c lin e d b y 7 5 b a sis p o in ts or so from
the start o f the year.
o b serv ed in th e p u b lish e d data.
Short-term in terest rates fe ll a p p recia b ly —
It first appeared lik e ly that th is trend c o u ld
avera g in g 7 0 to 8 0 b a sis p o in ts lo w e r in F eb ru
co n tin u e after the February m e e tin g , but
m o v e d a b o v e its 2 -m o n th ran ge and estim a te s
ary than in January. S e cu rities d ea lers b e g a n to
take o n su b stan tial in v e n to r ie s, and the is su e s
202
Federal Reserve Bulletin □ April 1975
offered in th e T rea su ry ’s February refu n d in g
w ere b id for a g g r e ss iv e ly . L o n g -term rates d e
c lin ed o n ly slig h tly , h o w e v e r , as in flation w o r
ries and in crea se s in su p p ly d a m p en ed sen tim en t
in the b o n d m ark ets. N e w h ig h ly rated u tility
is su e s w ere offered to return around 8 Vs per
ce n t, 10 b a sis p o in ts lo w e r than in January, and
y ie ld s on old er is su e s w er e little ch a n g ed .
A s the w in ter p r o g re sse d , c o n cern about
p rices b eg a n to h a v e stronger im p a ct. It b ec a m e
apparent that th e s lo w d o w n in the e c o n o m y w a s
related m a in ly to o il and that o th e rw ise d em a n d
w a s strong. T h e e x p e c te d returns o n h o ld in g
in v en to ries o f m a n y g o o d s w ere r e v ise d h ig h er
and d em an d s for short-term cred it ex p a n d ed .
B o rro w in g in th e c o m m e r cia l paper m arket
b eg a n to g ro w rap id ly.
S o m e b eg a n to r e a sse ss sen tim en t about the
co u rse o f m on etary p o lic y and in terest rates.
T h e r e v isio n in e x p e c ta tio n s g rew m ore w id e
spread w h en e x tr e m e ly rapid m on etary gro w th
e m erg ed and w a s con firm ed du rin g F ebruary.
A s the M a n a g er ’s r esp o n se to the a g g reg a tes
b eca m e clear in th e F ed eral fu n d s rate, other
interest rates b e g a n to rise at a rapid p a c e . B a n k s
b eg a n to re v ise e stim a tes o f the lik e ly co u rse
o f credit d em a n d s, and secu ritie s d ea lers started
to cut in v en to r ie s su b sta n tia lly .
B y the tim e o f th e M arch F O M C m e e tin g ,
the 3 -m on th T reasu ry b ill rate w a s near the 8
per cen t le v e l o f th e p rev io u s N o v e m b e r , after
h a v in g fa lle n b e lo w 7 per cen t 5 w e e k s earlier.
L on g-term rates w e r e p ressin g ag a in st the record
h ig h s o f A u g u st 1 9 7 3 , w ith n e w A aa-rated u til
ity b on d s offered at c lo s e to SV2 per ce n t. Y ie ld s
o n h ig h -c o u p o n G o v ern m en t b o n d s w e r e risin g
to and a b o v e earlier reco rd s. A 7 -y ea r n o te
au ctio n ed in th e February refu n d in g at 6 .9 5 per
cen t w a s y ie ld in g c lo s e to IV 2 per c en t.
M
arch-
S
eptem ber
T h e d y n a m ics o f ch a n g e in th e fin an cial m e c h a
n ism b e ca m e v ery e v id e n t in the m o n th s that
fo llo w e d th e M arch F O M C m e e tin g . T h e
g row th o f M x rem a in ed q u ite rap id , e x p a n d in g
at a 6 .7 per cen t rate in th e se c o n d quarter. T h e
S y s te m ’s efforts to retard m o n e y g ro w th a m id st
stren gth en in g e x p e c ta tio n s about th e c o u rse o f
e c o n o m ic a ctiv ity and p rices b rou gh t in terest
rates to u n p reced en ted le v e ls . T h e fin an cial
m arkets ex p e r ie n c e d co n sid er a b le d u ress, and
liq u id ity co n sid e ra tio n s b e c a m e param ount.
W h ile th e C o m m itte e c o n tin u ed se e k in g to re
strict rapid m o n eta ry e x p a n sio n , it acted to
reaffirm the F ed eral R e s e r v e ’s ro le in m a in ta in
in g the v ia b ility o f the fin an cial sy ste m .
T h e stron g cred it and m on etary e x p a n sio n
that e m er g ed in the first quarter o f the year
u n d erscored the im p act o f the v ery rapid and
e n tren ch ed rate o f in flation . L o o k in g a h ea d , it
appeared that th e liftin g o f the o il em b a rg o in
m id -M arch m ig h t g iv e support to greater p er
so n a l c o n su m p tio n ex p en d itu res and c o u ld h a v e
an e x p a n siv e e ffe c t o n e c o n o m ic a ctiv ity b y the
su m m er. G o v ern m en t sp en d in g w a s lik e ly to
co n tin u e at a su b stan tial rate, and b u sin e ss in
v estm e n t d em a n d s rem a in ed stron g.
In c o n se q u e n c e , at th e M arch F O M C m e e t
in g , the staff n o ted that reten tio n o f the lo n g errun o b je c tiv e s for the a g g reg a tes w a s lik e ly to
en ta il an e x te n s io n o f the upw ard thrust in
in terest rates. A t the sa m e tim e , estim a te s o f
the d em an d for m o n e y o v er th e m o n th s ahead
w ere su b ject to m o re error than u su a l. In a d d i
tio n to the u n certain ty about th e e c o n o m ic ou t-
Selected interest rates
In p e r cent
1973
1974
R ates
D ec.
28
S h o r t- te r m
F e d e ra l
fu n d s—
w e e k ly a v e r a g e
effective rate ..
9 .5 2
3 - m o n th T r e a s u r y
b ill — a v e ra g e
b o n d y ield e q u iv
a lent ....................... 7 .6 5
D isco u n t ra te — F e d
eral R ese rv e B ank
of N ew Y ork
7 .5 0
3 -m onth C D ’s .......... 9 .2 2
L o n g - te rm
U .S . G o v t, secu rities 6 .4 7
R e c e n tly o ffe re d
A a a-ra ted
utility
bon d s ..................... 8 .1 0
State and local govt,
b o n d s— M oody ’s
A aa b o n d s .............. 4 .8 5
F ed eral H o u sin g A d
m in istra tio n m o rt
g a g es— secondary
m a rk e t r a t e s .......... 8.7 8
F eb.
13
July
3
A ug.
27
Sept.
30
D ec.
31
8 .9 3
13.55
11.84
11.12
7 .3 5
7.31
8 .0 7
10.31
6 .5 8
7 .3 4
8 .5 0
8 .0 8
8 .0 0
12.15
8 .0 0
12.45
8 .0 0
10.69
7 .7 5
9 .2 5
6 .5 0
7 .1 2
7 .3 0
7 .2 7
6 .7 8
8 .1 9
9 .7 9
10.26
10.27
9 .6 7
5.0 5
6 .2 0
6 .4 0
6 .7 0
8 .5 4
9 .8 5
10.38
9.51
6 .3 5 .
10.30
N o t e . — D ata fro m B oard of G o v e rn o rs, F ed eral R eserv e B ank
of N ew Y o rk , M o o d y ’s Investors S e rv ice, and B o n d B u y e r .
Monetary Policy in Changing Environment
lo o k , there w ere the p ro b lem s o f a ss e ssin g h o w
b orrow ers, len d e r s, and sa v ers w o u ld react to
the recen t and p r o sp e c tiv e rates o f inflation.
T h e se related u n certa in ties rem ain ed through the
su m m er, th o u g h the o n g o in g rise in in terest
rates w a s e x p e c te d to ex ert restraint on m on etary
grow th as tim e w e n t o n .
A t its M arch m e e tin g , the F O M C v o te d to
m od erate grow th in the a g g reg a tes o v er the
m on th s ah ead . E x p a n sio n in M x had b ee n su b
stantial in F eb ru ary, and the im p etu s to rapid
grow th w a s e v id e n tly co n tin u in g . T o a llo w for
greater p rogress tow ard the a c h ie v e m e n t o f a
m od erate g row th o b je c tiv e , the F O M C red u ced
the lo w er en d s o f th e 2 -m o n th to lera n ce ran ges
for the variou s m ea su res rela tiv e to th o se su g
g ested b y the staff. T h is a ctio n m ean t that the
M anager w o u ld n ot resp o n d to lo w e r g row th
rates, w h ic h m ig h t b e tem p orary.
T h e sa m e approach w a s tak en at su b seq u en t
m e e tin g s th rough J u ly , and e a ch tim e the F O M C
raised the ran ge fo r the F ed eral fu n d s rate rela
tiv e to the o n e sp e c ifie d at the p rev io u s m e e tin g .
A t tim es in the in terval b e tw e e n m e e tin g s, the
C o m m ittee agreed to let th e fu n d s rate in crea se
further than in itia lly c o n tem p la ted .
B y A u g u st, m o n eta ry g ro w th had m od erated
su b stan tially and had fa lle n b e lo w the lo n g errun target. T h e o u tlo o k for th e rest o f the year
su g g e ste d a resu m p tio n o f faster e x p a n sio n but
n ot at a p a ce that w a s lik e ly to ca ll forth further
in crea ses in interest rates. T h e F O M C at that
tim e w a s ab le to red u ce slig h tly the upper en d
o f the range o f v ariation in th e F ederal fu n d s
rate— for the first tim e in 6 m o n th s— w h ile re
tain in g its earlier o b je c tiv e for M x and the other
m ea su res.
T h e M an ager b eg a n so o n after the M arch
m eetin g to restrict th e a v a ila b ility o f n on b or
ro w ed r e se r v e s, g iv e n e v id e n c e that o v e r ly rapid
g row th w a s co n tin u in g . S u ch a ctio n s w ere
ex ten d ed through early M a y , but th ey b e ca m e
in crea sin g ly c o n d itio n e d b y financial m arket
co n sid era tio n s. W id esp rea d e v id e n c e o f strong
inflationary pressu res in the e c o n o m y m ad e fi
n an cial m arket p articip an ts e sp e c ia lly se n sitiv e
to the e n su in g rise in the F ed eral fu n d s rate.
B a n k s b eg a n to b id m ore a g g r e ss iv e ly for re
se r v e s , and the fu n d s rate rose to around 10 Vi
per cen t b y m id -A p ril.
203
T h ereafter, th e M an ager fo u n d it in cr e a sin g ly
difficult to tem p er th e rise in th e fu n d s rate, as
b anks so u g h t to lim it b o rro w in g at th e d isc o u n t
w in d o w . T h e T rad in g D e sk fo u n d that su p p lies
o f secu rities w e re o fte n in su fficien t for o p en
m arket o p era tio n s as d ea lers had sharply re
d u ced their in v e n to r ies. T h e C o m m itte e agreed
to p erm it the fu n d s rate to m o v e h ig h er than
c o n tem p la ted at its A p ril m e e tin g rather than
co n d u ct r e se rv e -su p p ly in g o p era tio n s o n a sca le
that w o u ld risk m arket m isin terp retation o f the
S y s te m ’s p o lic y in ten t. W h ile th e D e sk had b een
an ticip atin g a F ed eral fu n d s rate o f around 11
per cen t as the n e x t m ee tin g ap p ro a ch ed , it ro se
c o n sid era b ly m o re and rea ch ed a record w e e k ly
av era g e o f 1 1 .4 6 per cen t in m id -M a y .
B u sin e s s b o rro w in g at b an k s b e c a m e ex traor
d in arily la r g e, as e c o n o m ic a c tiv ity p ro v ed to
b e co n sid e ra b ly stronger than had b e en e x p e c te d
earlier. B y the sp rin g th e cred it p ro x y w a s
ex p a n d in g at an u n p reced en ted rate, th e prim e
rate w a s up to 11 lA per c e n t, and b an k s w ere
b id d in g in te n se ly to ob tain n ee d e d fu n d s in the
m o n e y m ark ets— ra isin g m o re than $ 1 0 b illio n
in A p ril and M a y in the C D m arket. M o st b anks
c o n tin u ed to co n fin e a c tiv ity to th e sh orter-m aturity area, o ften d riv in g rates o n C D ’s and
E u ro-d ollars w e ll a b o v e the F ed eral fu n d s rate
and m a k in g ro llo v er s a p ersisten t p ro b lem . T h e
d rive to issu e C D ’s ex te n d e d n a tio n a lly , and
sm aller b anks b eg a n to rely in cr e a sin g ly o n the
m o n e y m arket for fu n d s.
T h e se p ressu res so o n e x ten d e d p ast th e b an k
in g sy ste m and y ie ld s in the cred it m arkets
b eg a n to rise d ra m a tica lly . C o m m e r c ia l paper
rates ju m p ed b y 2 5 0 b a sis p o in ts b e tw e e n m id M arch and early M a y , w ith the rate o n 9 0 -d a y
d ea ler-p la ced paper rea ch in g 11 per cen t.
B an k ers a c ce p ta n c e rates ro se sim ila rly am id
ex tr e m ely h e a v y a ctiv ity . T reasury b ill rates
rose b y r e la tiv e ly le s s than rates o n other m o n e y
m arket in stru m en ts, but b oth th e 3- and 6 -m o n th
issu e s w ere a u ctio n ed at rates in e x c e s s o f 9
per cen t b y the se c o n d w e e k in M a y . In d iv id u a l
in v esto rs ch a n n e led m o re fu n d s in to b ills and
so o n b o u g h t su b stan tial am ou n ts o f T reasury
c o u p o n and a g e n c y is su e s. In th e M a y refu n d
in g , sm a ll in v e sto r s p u rch ased $ 1 .5 b illio n o f
the n ew is s u e s , m o re than o n e-th ird o f the
am ou n t b e in g o ffered .
204
Federal Reserve Bulletin □ April 1975
T h e nature o f m arket p ressu res w a s sig n ifi
can tly altered, as n e w s o f the d ifficu lties b e in g
fa ced b y the F ranklin N a tio n a l B a n k b ec a m e
w id esp read b y ea rly M a y .3 T h e su b stan tial
grow th that had tak en p la c e in C D ’s and the
attendant red u ction in bank liq u id ity w ere d is
turbing. In vesto rs b eg a n to sh o w p referen ce for
instrum ents o f o n ly th e larg est and m o st w e llk n o w n b anks. C o n cern o v er the financial sta b il
ity o f so m e o p e n m arket borrow ers e m e r g e d ,
and it b eca m e m ore d ifficult to refinance m atur
in g lia b ilities.
R eal estate in v e stm en t trusts and u tility c o m
p an ies en cou n tered particular p ro b lem s. T h e
y ie ld d ifferen tia ls b e tw e e n in stru m en ts w ith d if
ferent credit ratings w id e n e d a p p reciab ly in b oth
the short- and lo n g -term d eb t m ark ets. In the
G o vern m en t secu ritie s m ark et, the g r o w in g
p referen ce o f in v esto rs for le s s risk y o b lig a tio n s
led to y ie ld d e c lin e s. S o m e b eg a n to think that
th ese p ressu res w o u ld so o n lea d b an k s to re
strain asset g ro w th , so that the rapid rate o f
m onetary e x p a n sio n w o u ld m od erate and lea d
to a m o d ificatio n o f S y ste m p o lic y .
T h e M anager m o v e d c a u tio u sly in restrictin g
reserve su p p lies o v er th e rest o f M a y and w e ll
into June. T h e a g g reg a tes g en era lly sta y ed on
the h ig h sid e o f their ra n g es, and the F ederal
fu n d s rate w a s around 11% per cen t b y m id June. C o n d itio n s in th e se cu ritie s m arkets had
sta b ilized to so m e d e g r e e .
B ut in late June and early J u ly , liq u id ity
p ressures erupted again and there w a s a sig n ifi
cant deterioration in d o m e stic and international
fin ancial m arket c o n d itio n s. T h e failu re o f a
bank in G erm an y r en ew e d ap p reh en sion in the
p o sitio n s ca u tio u sly , p referrin g to risk e x c e s s
reserv es rather than d e fic ie n c ie s. In th ese cir
c u m sta n c e s, the a v era g e F ed eral fu n d s rate
ju m p ed b y 158 b a sis p o in ts to m ore than 13V2
per c en t in 1 w e e k in ea rly J u ly , w e ll a b o v e
the 12 per cen t le v e l then in ten d ed . W h ile the
M an ager p u m p ed in n o n b o rro w ed reserv es a l
m o st co n tin u a lly and at a p a ce that w o u ld h a v e
p rod u ced an a ccep ta b le rate under norm al c ir
c u m sta n c e s, the rate sh o w e d little te n d en cy to
e d g e lo w e r . It b e ca m e in cr e a sin g ly clear that
m ore m a s siv e r e se rv e -su p p ly in g o p era tio n s
w o u ld b e n e e d e d to p u sh the fu n d s rate d o w n .
T h e C o m m ittee o n Ju ly 5 in stru cted the
M an ager to co n tin u e effo rts to bring th e rate
d o w n to w ith in its 11% to 1 2 1A per cen t ran ge
o f to lera n ce but n ot to th e ex te n t o f flo o d in g
the m arket w ith re se r v e s. B u t th e se p ressu res
p ersisted and the F ed eral fu n d s rate rem ain ed
w e ll a b o v e 13 per ce n t. O n e w e e k later, the
F O M C a greed that o p era tio n s sh o u ld b e u n d er
taken p rom p tly to red u ce th e fu n d s rate to 13
per cen t and to perm it it to d e c lin e further sh o u ld
m arket fa cto rs w o rk in that d irectio n . A fter
stea d ily and regu larly p u m p in g in r e se r v es, the
p ressu res fin ally g a v e w a y around the tim e o f
th e F O M C m e e tin g in m id -J u ly .
A fter th e e x c e p tio n a lly taut m o n e y m arket
c o n d itio n s had fa d e d , the M an ager d irected
op era tio n s at m a in ta in in g a F ed eral fu n d s rate
o f around 12% per cen t until the m ex t m e etin g
o f the C o m m itte e in A u g u st. G row th in the
a g g reg a tes m od erated sig n ifica n tly in the su m
m er m o n th s so that b y late A u g u st m o st m e a s
ures had fa lle n b e lo w their to lera n ce ra n g es. T h e
M an ager thus so u g h t so m e e a sin g in bank re
m ark ets. P ron o u n ced sh ifts in b o rro w in g and
serv e c o n d itio n s, and the F ederal fu n d s rate
len d in g patterns occu rred , and m an y in stitu tio n s
red u ced the am ou n ts that th ey w o u ld len d to
d e clin e d to 11% per ce n t— near its le v e l 3
m o n th s earlier.
in d ivid u al b orrow ers.
B an k s acted to red u ce b o rro w in g at the d is
cou n t w in d o w , apparently to p reserve th is p riv
e m e rg e d in the b a n k in g sy ste m in early Ju ly had
a p rofou n d im p act o n th e credit m arkets. C o n
The
in ten se
d em a n d s
for
liq u id ity
that
ile g e for later u s e , and m a n a g ed their reserv e
cern o v er the sa fety o f a ssets w a s h e ig h te n e d ,
and in v esto rs b e c a m e e x c e p tio n a lly reluctant to
3 On May 12 the Federal Reserve indicated that it
would advance funds to Franklin National if that bank
experienced unusual liquidity pressures. As its deposits
and other liabilities fell, Franklin’s use of the discount
window grew substantially and reached about $1.75
billion by early October, when it was taken over by
the European-American Bank. At that time, the Federal
Deposit Insurance Corporation assumed Franklin’s lia
bilities to the Federal Reserve.
len d o n an y but the m o st secu re instru m en ts.
C o m m ercia l paper rates ro se to 12% per cen t
in early J u ly , and d ea lers b eg a n e n c o u ra g in g
borrow ers to u se bank lin e s o f cred it. T h e prim e
rate so o n ro se to an u n p reced en ted 12 per cen t.
T h e largest b an k s w ere ab le to a c c o m m o d a te
m ore lo a n d em a n d s as th ey fo u n d C D and other
Monetary Policy in Changing Environment
short-term fu n d s rea d ily a v a ila b le, but sm aller
b anks en co u n tered d ifficu lty in refin an cin g m a
turing lia b ilitie s. M ajor m o n e y cen ter b anks
p aid as m u ch as 12V2 per ce n t o n short-term
C D m atu rities and raised $ 2 .8 b illio n o f n ew
fu n d s in Ju ly. In the bankers a ccep ta n ce m ark et,
the su sp e n sio n o f o p era tio n s b y the largest
d ealer added to the d ifficu lties o f lesse r k n o w n
banks in s e llin g their paper. R a tes ro se sharply
and a tiered m arket d e v e lo p e d , a lth ou gh the
situ ation w a s r e lie v e d b y in crea sed S y ste m
b u y in g o f a cc e p ta n c es under the en la rg ed
le e w a y ad op ted b y th e F O M C on July 18.
M o n e y m arket p ressu res e b b ed as the su m m er
p ro g ressed , th o u gh the m arkets w ere thin and
v o la tile . B u t b y early S ep tem b er, C D and c o m
m ercial paper rates w e r e m o v in g b ack tow ard
earlier h ig h s , reflectin g c o n cern o v er th e siz e
o f fo rth co m in g m atu rities. T o e n c o u ra g e b an k s
to reb u ild liq u id ity b y e x te n d in g the m aturity
structure o f their lia b ilitie s, the B oard o f G o v
ernors o f the F ed eral R e se r v e S y stem a m en d ed
R eg u la tio n D o n S ep tem b er 5 to rem o v e the 3
per cen t m argin al reserv e req u irem en t o n tim e
d ep o sits and other o b lig a tio n s m aturing in 4
m on th s or lo n g er.
In the deb t m a rk ets, p rices fe ll su b sta n tia lly
during the su m m er am id g r o w in g ap p reh en sion
about their ab ility to w ith sta n d c u m u la tin g l i
q u id ity p ressu res. S ta b ility r e-em erg ed but the
con cern about liq u id ity p ressu res resu rfaced p e
rio d ica lly and rem a in ed a critical factor in the
m ark ets. U n certa in ty ab ou t the le v e l o f y ie ld s
n eed ed to attract b u yers prom p ted underw riters
to se ll is su e s on a n eg o tia te d b a sis and a lso
e n co u ra g ed certain issu e r s, m a in ly b a n k s, to sell
n o tes w h o s e returns w er e tied to T reasury b ill
rates. P o stp o n e m en ts and red u ctio n s o f c o r
porate and ta x -e x e m p t issu e s had little im p act
as th ey o n ly added to a m o u n tin g calen d ar o f
future o fferin g s. B y early S ep tem b er it to o k 10
per cen t to m arket a n e w lo n g -term A aa-rated
telep h o n e o fferin g , co m p a red w ith the 8 .8 0 per
205
o il-e x p o r tin g co u n tries turned ou t le s s strong
than m a n y had a n ticip a ted . T reasury b ill rates
set at th e A u g u st 2 6 w e e k ly au ctio n ro se to
record s o f 9 .9 1 per cen t and 9 .9 3 per cen t for
the 3 - and 6 -m o n th is s u e s , after fa llin g b e lo w
8 per cen t o n sev era l o c c a sio n s earlier in the
su m m er.
D em a n d fro m sm a ll in v esto rs ab sorb ed a h ig h
p roportion o f su b stan tial n e w o ffe rin g s o f G o v
ern m en t and F ed eral a g e n c y is su e s. In the A u
g u st refu n d in g the T reasury p la ce d u n p rece
d en ted 9 per c en t c o u p o n rates o n tw o n o te
o fferin g s and sm a ll in v esto rs p u rch ased $ 2 .3
b illio n o f the $ 4 .3 b illio n so ld . T h e 3 3 -m o n th
and 6 -y ea r is su e s w e r e aw ard ed at rates o f 8 .5 9
per cen t and 8 .7 5 per c e n t, r e sp e c tiv e ly . A n
a d d ition al $ 4 0 0 m illio n o f SV2 per cen t b o n d s
w a s issu e d at 8 .6 3 per ce n t, co m p a red w ith the
8 .2 3 per cen t y ie ld set w h e n the b o n d s w ere
first issu e d in the M a y refu n d in g . R ates o n n ew
F ed eral a g e n c y is su e s rea ch ed n e w h ig h s , as
b o rro w in g b y th e h o u sin g -r ela te d a g e n c ie s in
c rea sed . W h ile th e m ark ets rem a in ed under
p ressu re, th e d e c ele r a tio n in the g ro w th o f the
m o n e y su p p ly o v e r the su m m er and in to S e p
tem ber p ro v id ed h o p e that in terest rates c o u ld
so o n m o v e lo w er .
S eptem ber— D
ecem ber
T h e su b stan tial and w id esp rea d e r o sio n o f l i
q u id ity p ro d u ced a stron g resp o n se that e m e rg e d
tow ard the c lo s e o f the year. M o n eta ry e x p a n
sio n rem ain ed s lo w , and the C o m m itte e ’s effo rts
to a c h ie v e m o re rapid g ro w th m et w ith lim ite d
su c c e s s. E v e n th o u g h th e S y ste m e n c o u ra g ed
substantial in terest rate d e c lin e s , b o th th rou gh
o p en m arket o p era tio n s and regu latory c h a n g e s,
banks so u g h t to e x e r c ise restaint o f their o w n
by lim itin g lo a n c o m m itm e n ts and a sset gro w th .
C on cern o v er the a d eq u a cy o f ban k cap ital and
In a d d itio n , the v o lu m e o f short-term n o tes
the financial p ro sp ects o f b orrow ers in crea sed .
T h ese co n sid er a tio n s w e re a lso ev id e n t in the
debt m arkets am id a sharp co n tra ctio n o f real
e c o n o m ic a c tiv ity tow ard the en d o f the year.
reach in g the m arket in crea sed .
T h e sa fety and liq u id ity o f G o v ern m en t s e
tem ber
cu rities had in itia lly g en era ted so m e ad d ition al
w e a k n e ss in real e c o n o m ic a ctiv ity w o u ld p er
y ie ld d e c lin e s in late June and Ju ly. T h is ten
d e n cy w a s later re v e r se d , as su p p ly p ressu res
m ou n ted and as d em a n d for su ch is su e s b y
sist in the fourth quarter o f th e year and in the
first h alf o f 1 9 7 5 . T h e u n e m p lo y m en t rate had
b eg u n to e d g e u p , and it w a s e x p e c te d that a
cen t y ie ld o ffered b y the parent co n cern in M a y .
T h e o u tlo o k for the e c o n o m y
FOM C
m ee tin g
at the S e p
su g g e ste d
that
the
206
Federal Reserve Bulletin □ April 1975
con traction in h o u sin g w o u ld c o n tin u e w h ile
dem an d s in other secto rs w o u ld m o d era te. A l
th ou gh inflation w a s still rapid, the b eh a v io r o f
p rices appeared to b e sh o w in g sig n s o f im
p rovem en t.
lo w e r lim it agreed u p o n b y the C o m m ittee on
O ctob er 4 . W h ile th e a g g reg a tes m o v e d tow ard
the upper en d o f their ran ges after the O ctob er
m e e tin g , the F O M C re -e m p h a size d its co n cern
2 per cen t rate o v er th e third quarter and it
rem ain ed b e lo w its lo n g er-ru n target, in crea sin g
at 4 .3 per cen t in th e final 3 m o n th s o f the year.
D e c lin e s in m arket in terest rates fo stered better
in flow s o f tim e and sa v in g s d e p o sits, and M 2
rose ap p reciab ly but at a slo w er p a c e than in
the first 9 m on th s o f the y ear. B a n k s perm itted
m aturing C D ’s to run o ff, and gro w th in the
credit p roxy slo w e d further. T h e C o m m itte e
b eca m e stea d ily m ore w illin g to se e m o n e y
m arket c o n d itio n s e a s e , and ea c h m on th it
lo w ered sig n ifica n tly th e range o f variation a l
lo w e d for the F ed eral fu n d s rate. O n tw o o c c a
sio n s it m ad e p r o v isio n for further d e c lin e s in
the p eriod b e tw e e n m e e tin g s. T h e B oard a lso
restructured and red u ced reserv e req u irem en ts
in m id -N o v em b er . In ea rly D e c e m b e r , it ap
proved a red u ction in F ed eral R e se rv e B an k
d isco u n t rates fro m 8 per cen t to 7% per ce n t,
w ith the u n d erly in g so u rces o f w e a k n e ss in the
e c o n o m y and a g reed , o n N o v e m b e r 1, that the
M an ager take a ctio n s that w o u ld lo w er the fu n d s
rate fro m 9 3A per cen t to 9V2 per cen t. T h e
strength in M 1 turned ou t to b e tem p orary, and
the M an ager b e ca m e ste a d ily m ore a c c o m m o
d a tiv e in p ro v id in g n o n b o rro w ed reserv es o v er
the rest o f the y ear. B y th e final w e e k h e w a s
se e k in g a v a ila b ility c o n siste n t w ith a fu n d s rate
o f around 8 per cen t or b e lo w , n early 3 p er
cen ta g e p o in ts le s s than its le v e l 3 m o n th s earlier
and the lo w e s t in m o re than a year and a h a lf.
T h e M an ager o fte n had d ifficu lty in e n c o u r
a g in g the F ed eral fu n d s rate to d e c lin e as the
year d rew to a c lo s e . S u b stantial a d d itio n s to
n o n b o rro w ed r e serv es fa cilita ted bank effo rts to
red u ce d isco u n t w in d o w b o rro w in g . M arket
ch u rn in g around tax and o il p a y m en ts d ates
o ften gen era ted en la rg ed d em a n d s for e x c e s s
r e se rv e s, and a ctio n s b y b an k s to im p ro v e the
appearance o f their b a la n ce sh e ets on statem en t
dates w ere m ore ev id e n t than in other recen t
yea rs. T h e resu ltan t m o n e y m arket p ressu res
w ere p articularly in ten se in th e final w e e k o f
19 7 4 w h e n F ed eral fu n d s traded near 9 per cen t
until the rate fe ll to le s s than 4 per cen t o n the
final d ay o f th e year— w h e n th e b an k in g sy ste m
em er g ed w ith e x c e s s r e serv es a v era g in g m ore
than $ 6 0 0 m illio n for th e statem en t w e e k .
Sh ort-term in terest rates d e c lin e d q u ite
sharply in the final m o n th s o f the y ea r, but the
d ow n tren d w a s o ften interrupted. W h ile the
s lo w g ro w th o f the m on etary a g g re g a te s, the
the first cut in 3 y ea rs. Staff a sse ssm e n ts p re
sen ted at the D e ce m b er m e e tin g su g g e ste d a
sign ifican tly larger co n tra ctio n in e c o n o m ic a c
M a n a g er’s o p era tio n s, and S y ste m regu latory
c h a n g e s gen era ted fa v o ra b le e x p e c ta tio n s about
the in terest rate o u tlo o k , th e perpetual refin an c
In v ie w o f th is situ a tio n , the C o m m ittee d e
cid e d to seek gro w th in th e m on etary a g g reg a tes
at rates slig h tly h ig h er than th o se c o n tem p la ted
earlier and raised its lo n ger-ru n o b je c tiv e s for
M i and other m ea su res. A staff a n a ly sis s u g
g ested that m o n e y m arket c o n d itio n s sh o u ld
e a se in the p erio d ahead if M x w ere to reach
the e x p a n sio n d esired o v er th e lo n g e r run.
In the m on th s that fo llo w e d , e stim a te s o f the
d e c lin e in in terest rates that w o u ld b e n ee d e d
to spur a resu m p tio n o f m on etary g row th b e
ca m e su c c e s s iv e ly larger as the e c o n o m ic o u t
lo o k w o rsen ed .
had g ro w n at le s s than a
tiv ity than had b een an ticip ated ea rlier, and the
C o m m ittee raised its lo n ger-ru n o b je c tiv e s for
M x and other m ea su res.
W h en the m on etary a g g reg a tes m o v e d near
in g o f m aturing d eb t and the m ore se le c tiv e
p referen ces o f in v esto rs w o rk ed again st th is
trend.
or b e lo w the ran ges o f to lera n ce after the S e p
B a n k s b e ca m e m ore c o n cern ed about liq u id
ity and so u g h t to restrain a sset g ro w th . R e d u c
tem ber F O M C m e e tin g , th e M an ager acted to
attain so m e further e a sin g in m o n e y m arket
tio n s in th e prim e rate la g g e d th o se o n o p en
m arket ra tes, and bank in v e stm e n t p o r tfo lio s
co n d itio n s. T h e fu n d s rate had d e c lin e d b y
nearly % p ercen ta g e p o in t to 11 per cen t b y
co n tin u ed to con tract. P erio d s o f h e a v y C D
m atu rities w ere o fte n p reced ed b y d riv es to
early O ctober and th en fe ll q u ic k ly to just under
10% per cen t o v er the n ex t 2 w e e k s , th e n e w
refinance th e se o b lig a tio n s w e ll ahead o f tim e.
C D rates fe ll b y m o re than 2 5 0 b a sis p o in ts to
Monetary Policy in Changing Environment
as lo w as 8V2 per cen t o n 3 0 -d a y m atu rities at
o n e p oin t. B u t th ey ro se o v er a g o o d part o f
D e cem b er and m ajor b an k s p aid as m u ch as 9V2
per cen t to b o lster d e p o sit totals o v er the yearen d . S o m e effort to e x te n d the m aturity o f th ese
o b lig a tio n s b e c a m e apparent in the early w e e k s
of 1975.
W h ereas larg e m o n e y cen ter b an k s fo u n d
th e m se lv e s m a k in g lo a n s to in d u stries w ith sp e
cia l p ro b lem s, other b an k s a c tiv e ly d isco u ra g ed
b o rro w in g . T h e resultant sh ift o f so m e refu n d
in g to the c o m m e r c ia l paper m arket w o rk ed to
s lo w the d e c lin e in th ese rates. A lth o u g h
d ea ler-p la ced 9 0 - to 1 1 9 -d a y paper had fa lle n
to 9Vs per cen t b y m id -D e c e m b e r , d o w n fro m
113A per cen t in ea rly S ep tem b er, m o st o f th is
drop occu rred sh ortly after the en d o f the third
quarter. W h ile th e F ed eral fu n d s rate in D e
cem b er a v eraged 8 .5 3 per c e n t, a lm o st I V 2
p ercen ta g e p o in ts b e lo w its le v e l a year ea rlier,
rates o n private m o n e y m arket in stru m en ts w ere
o n ly 15 to 3 0 b a sis p o in ts lo w e r .
T h e lo n g -term d eb t m ark ets fa c e d a g r o w in g
v o lu m e o f fin a n cin g as b u sin e sse s b eg a n to
refund sh ort-term b o rro w in g . T h e co n tin u ed
h esita n cy o f in v esto r s to c o m m it fu n d s and
con cern about th e im p act o f a slo w in g e c o n o m y
207
Y ork C ity . T h e B o n d B u y e r 's in d e x o n ta x -e x em p t y ie ld s r o se to a record 7 .1 5 per cen t in
m id -D e c e m b e r , 2 p ercen ta g e p o in ts a b o v e its
le v e l near the start o f th e year.
G o v ern m en t secu r itie s c o n tin u ed to fare rela
tiv e ly better, th o u g h the p ro sp ects o f large F e d
eral b u d g et d eficits and attendant T reasu ry b o r
r o w in g tem p ered m arket se n tim en t. D e a ler s
added su b sta n tia lly to in v en to rie s in th e N o
v em b er T reasu ry r efu n d in g , but th e d istrib u tion
p h a se p r o ce e d e d s lo w ly . D e m a n d fro m in stitu
tion al in v esto rs and b an k s rem a in ed m o d e st,
w h ile n o n c o m p e titiv e ten d ers fe ll o ff in v ie w
o f th e red u ctio n in y ie ld s sin c e th e su m m er. T h e
T reasury so ld n e w 3- and 7 -year c o u p o n issu e s
at y ie ld s o f about 7 % per c e n t, so m e 6 5 b a sis
p o in ts b e lo w earlier h ig h s. A t the y ea r-en d ,
y ie ld s o n in term ed iate c o u p o n se cu ritie s w ere
around I V a to 7 % per c e n t, still about V2 p er
cen ta g e p o in t a b o v e le v e ls at th e en d o f 1 9 7 3 .
A d d itio n a l 8V2 per ce n t b o n d s w e r e issu e d in
N o v e m b er at 8 .2 1 per c e n t, c lo s e to their y ie ld
in th e p rev io u s M a y and 7 5 b a sis p o in ts a b o v e
the y ie ld o n a n e w 20-year issu e the p rev io u s
F ebruary.
T reasu ry b ill rates g e n e r a lly m o v e d in co n cert
w ith short-term rates o v er th e final m o n th s o f
1 9 7 4 and thus c lo s e d w e ll b e lo w le v e ls a year
earlier. M o st o f th e d e c lin e s occu rred so o n after
the S y s te m ’s m o v e s tow ard a m o re a c c o m m o
d a tiv e in terest rate p ostu re b e c a m e e v id e n t.
A fter fa llin g fro m around 9 per cen t to near 6 xh
per cen t fro m S ep tem b er to ea rly O cto b er, the
3 -m on th b ill c lo s e d the year at 7 .2 9 per c e n t,
com p ared w ith 7 .7 1 per cen t a year earlier.
on the financial p ro sp ects o f borrow ers added
to upw ard pressu re o n y ie ld s . W h ile y ie ld s
d e c lin e d in O ctob er and part o f N o v e m b e r , th ey
m o v e d back up am id su b stan tial ad d itio n s to
current and p r o sp e ctiv e su p p lie s. D ea le r s w ere
reluctant to und erw rite n e w o fferin g s in v ie w
o f their substan tial lo s s e s earlier in the year.
N e w A aa-rated u tility is su e s w ere so ld at around
9V2 per cen t in late D e c e m b e r , about % p er
cen ta g e p oin t a b o v e their lo w in the quarter and
150 b a sis p oin ts a b o v e y ie ld s a year earlier.
In vestors co n tin u ed to scru tin ize the particular
a sp ects o f d ifferen t b o rro w ers, and u tility firm s
had to offer co n sid e ra b ly m o re than industrial
E x p e r ie n c e o v er th e past sev era l years h a s d e m
onstrated the c o m p le x ity and varia b ility o f the
rela tio n sh ip s b e tw e e n in terest ra tes, the g row th
b orrow ers in order to se ll is su e s.
in the d ifferen t m o n eta ry a g g r e g a te s, and the
T h e y ie ld sp read s b e tw e e n firm s w ith d if
feren t ratings a lso rem a in ed q u ite w id e . T h e
path o f real e c o n o m ic a c tiv ity . T h e u se o f a g
gregate targetin g h as p rob ab ly con trib u ted to the
ta x -ex em p t m arket ca m e under particular stress
clarity o f m on etary p o lic y d is c u s s io n s , but p o li
as the year d rew to a c lo s e , d u e partly to the
c y m a k in g itse lf h a s n ot p ro v ed ea sie r . E v id e n c e
o f structural c h a n g es in the fin an cial sy s te m has
failu re o f bank d em a n d to m a teria lize as e x
p ected in this sta g e o f the c y c le . T h e lo n g -term
financial p rob lem s fa c e d b y m a n y m u n ic ip a lities
in an inflationary en v iro n m en t w ere g a lv a n ize d
by the p u b licity g iv e n to d ifficu lties in N e w
O B S E R V A T IO N S
red u ced th e p o lic y m a k e r ’s co n fid e n c e in the
stab ility o f the lin k a g e b e tw e e n op era tio n a l in
stru ction s and d esired lo n g -ru n e c o n o m ic g o a ls .
T h is ra ises q u e stio n s ab ou t h o w th e in term ed iate
208
Federal Reserve Bulletin □ April 1975
m on etary varia b les m a y b est b e u se d in a d y
nam ic settin g.
For m ost o f the p ast 5 y ea rs, b anks h a v e b een
co n sid era b ly m ore a g g r e ssiv e than earlier in
su p p ly in g credit and d e p o sits. A fter the d e fa c to
liftin g o f R eg u la tio n Q c e ilin g s o n large C D ’s
in 1 9 7 0 , banks b ec a m e m ore con fid en t o f their
ab ility to m eet lo a n c o m m itm en ts. T h eir d e v e l
op m en t o f esca la to r c la u se s on lo a n con tracts
and a floating p rim e rate in crea sed the profit
in c e n tiv e for lo a n ex p a n sio n during u p sw in g s
in e c o n o m ic a c tiv ity . O v e r ly rapid g row th in
m o n e y and cred it w a s o ften su sta in ed for so m e
tim e after interest rates b eg a n to in crea se. R ates
had to rise to a m u ch greater e x te n t— and p o s s i
b ly for a lo n g er p eriod o f tim e than perv io u s ly — in order to in d u ce the a sset ad ju st
m en ts b y ban k s that w e r e n e ed ed to stem bank
credit and m o n e y su p p ly e x p a n sio n . T h e u se o f
m arginal reserve req u irem en ts added to the c o st
o f fu n d s, but the siz e o f the c h a n g e s d id not
seem large e n o u g h to a ffect sig n ifica n tly bank
p o lic ie s . O n ly as cred it risks in crea sed w ith the
h igh le v e l o f in terest rates and the slo w in g
e c o n o m y d id b an k s m o v e tow ard m ore c o n se r
v a tiv e loan p o lic ie s .
T h is r ea ssessm e n t o f the v a lu e o f liq u id ity —
or the risk o f illiq u id ity — w o rk ed to retard a
resu m p tion o f m on etary g row th in the latter part
o f 19 7 4 . L a g g in g red u ctio n s in th e p rim e rate
en cou raged b orrow ers to repay their lo a n s and
thereby cut co m p e n sa tin g b a la n c e s. B ut b anks
sh o w ed little in clin a tio n to undertake the s ig n if
icant e x p a n sio n o f in v estm en ts that p r e v io u sly
occurred in this sta g e o f the c y c le . A lth o u g h
n on b orrow ed r e serv es in crea sed and short-term
interest rates fe ll su b sta n tia lly after the su m m er,
the siz e o f the b a n k in g sy ste m c h a n g ed little ,
and this w ork ed to restrict the g row th o f d e p o s
its.
S y stem -in d u c e d c h a n g e s in interest rates a lso
exert in flu en ce on m o n e y g row th b y a ffectin g
the p u b lic ’s d em a n d for liq u id a ssets. B u t the
e x ten t o f this resp o n se appears v a ria b le, perhaps
b eca u se the d em a n d for a particular form o f
m o n e y is a lso affected b y ch a n g e s in the finan
o f h ig h in terest rates m a y lea d to en la rg ed
d em a n d s for M x as a co m p e n sa tio n for the
o n g o in g lo s s o f liq u id ity . T h u s, so m e p erio d s
o f rapid e x p a n sio n in M x h a v e b een a cco m p a n
ie d b y slo w er rates o f in crea se in M 2. A t other
sta g e s, th e r eb u ild in g o f co n su m er tim e and
sa v in g s b a la n c e s as m arket in terest rates fa ll
m a y b e a c c o m p a n ied b y a sh ift ou t o f d em an d
d e p o sits, w h ic h lim its M x gro w th rela tiv e to that
o f M 2. T h e a v a ila b ility o f n e w ty p es o f tim e
d e p o sits o n o c c a sio n m a y a lso im p act o n the
p u b lic ’s d esire for th e d ifferen t c a te g o rie s o f
d e p o sits at g iv e n in terest rates and in c o m e
le v e l s .
W h erea s e m e rg in g fo r c e s can o ften ca u se
in e x p lic a b le sh ifts in the b eh a v io r o f a particular
a g g re g a te , a group o f m ea su res w ill g en era lly
track the e c o n o m y rea so n a b ly w e ll. F in a n cia l
ch a n g e h as e v id e n tly a ffected and w ill co n tin u e
to im p act o n th e su p p lies o f , and d em a n d s fo r ,
m on etary a sse ts. In th ese cir c u m sta n ce s, it is
d ou b tfu l that any sin g le m easu re q u alifies as the
“ b e s t” in term ed iate m on etary target b e ca u se
the lin k a g e s b e tw e e n S y ste m op era tio n s and the
a g g reg a tes— and b e tw e e n th ese m ea su res and
the e c o n o m y — are n ot lik e ly to rem ain u n
ch a n g ed or p red icta b le o v er tim e.
T h e C o m m itte e ’s ad op tion o f a g g reg a te tar
g etin g in 1 9 7 0 e sta b lish e d a m ea n s o f m a k in g
op en m arket o p era tio n s m ore se n s itiv e to
e m e rg in g trends in the e c o n o m y . W h ile the
C o m m ittee has p la ced m o st em p h a sis o n M l5
it o ften r e c o g n iz e d that th is m easu re w a s not
an u n fa ilin g g u id e . It d id not adopt u n varyin g
“ r u le s” for settin g M x o b je c tiv e s or for a c h ie v
in g th e m , d esp ite m a n y su g g e stio n s to th is e f
fe c t. T h e F O M C a llo w e d so m e flex ib ility to
resp o n d to the p o ssib ility that the b eh a v io r o f
other m ea su res in the p eriod b e tw e e n m ee tin g s
co u ld p ro v id e g rou n d s for a reco n sid era tio n o f
a resp o n se to M x.
F rom the M a n a g er’s sta n d p o in t, the e x p e r i
e n c e in recen t yea rs su g g e s ts that it w o u ld b e
u sefu l to e x te n d th is fle x ib ility . It sh o u ld b e
p o ss ib le to w e ig h m ore e v e n ly sev era l o f the
a g g reg a tes in the sp ecific a tio n s g iv e n to the
cia l sy stem . T h e su b stan tial grow th in alterna
tiv e short-term in v e stm e n ts m a y alter the p u b
M an ager. B y capturing a broader range o f in
l i c ’s d esired h o ld in g s o f d e p o sits. S h ifts in to the
then b e c o m e e v e n m ore attuned to the u n d erly
n ew er form s o f m arket a ssets du rin g th e p erio d s
in g e c o n o m ic co n d itio n s that it se e k s to a ffect.
fo rm a tio n , the C o m m itte e ’s in stru ctio n s m ig h t
209
The Structure of Margin Credit
D ata on m argin c red it, u n ifo rm ly d efined and
co v e r in g all len d e r s, h a v e n o w b een c o lle c te d
annu ally sin c e June 1 9 7 0 — a p eriod lo n g en o u g h
and varied e n o u g h to p erm it so m e a sse ssm e n t
o f structure and trends in m argin le n d in g . For
m em b er firm s o f th e N e w Y ork and A m erican
S to ck E x c h a n g e s— the m ajor su p p liers o f reg u
lated m argin cred it— th ese data h a v e b een
av a ila b le sin c e 1 9 6 8 . (S e e B u l l e t in articles:
“ M argin A cco u n t C r e d it,” June 1 9 6 8 , and
“ M easu res o f S ecu rity C r e d it,” D e ce m b e r
1 9 7 0 .)
C redit su p p lied to m argin acco u n t cu sto m ers
by brokers and d ea lers m a k es up the b ulk o f
regu lated lo a n s to p u rch ase or carry “ m argin
s t o c k s ,” alth ou g h th e p r e c ise share h as varied
from 7 9 per cen t to 8 6 per c en t. T h e statistical
record sh o w s that u se o f credit b y m argin a c
cou n t cu sto m ers h as resp o n d ed to upw ard and
d ow n w ard m o v e m e n ts in sto ck p rices— m o v in g
in the sa m e d irectio n but m u ch m ore sh arp ly.
M argin credit d o u b led from m id - 1 9 7 0 to m id 1 9 7 2 , w h ile a v era g e p rices a d v a n ced o n b a la n ce
b y 4 5 per cen t. O ver the n ex t 2 y ea rs, it d e c lin e d
by 35 per ce n t, w h erea s the p rice in d ex d e c lin ed
b y o n ly 21 per c en t from its le v e l in m id -1 9 7 2 .
O ver the entire p eriod June 1 9 6 8 -J u n e 1 9 7 4 ,
m argin acco u n t cred it at brokers d e clin e d 18 per
cen t on b a la n ce. H o w e v e r , th is trend w a s not
un iform a m o n g firm s, w h ic h appeared to h a v e
attracted d ifferin g c a te g o r ie s o f cu sto m ers.
C redit b ein g ex te n d e d b y lo ca l and region al
firms o u tsid e the N e w Y ork m etrop olitan area
M argin credit e x te n d ed b y b a n k s, u n lik e that
at brokers and d e a le r s, has e x p a n d ed o n b a la n ce
o v er the reporting p erio d , and it rea ch ed a n ew
h ig h o f m ore than $3 b illio n in June 1 9 7 4 .
B a rely on e-th ird o f th e se lo a n s, h o w e v e r , rep
resen ted reg u la ted cred it lik e that in m argin
actu ally sh o w e d a net in crea se o f 2 9 per cen t;
a cco u n ts. M o re than $ 2 b illio n w er e u n regu lated
lo a n s to p u rch ase or carry “ n on m argin s t o c k s ,”
w h ic h b an k s can m a k e but brokers ca n n o t.
N ea rly o n e -h a lf o f the total ( $ 1 .4 b illio n ) fe ll
in to the sep arately reported ca te g o r y o f “ bank
sto ck lo a n s ” to b orrow ers w h o w er e acq u irin g
other b an k s and p le d g in g th ese sh ares as c o lla t
eral. T h is lo a n c a teg o ry h as b een the m o st
im portant factor in the o v er-a ll e x p a n sio n o f
total m argin cred it at b an k s; but n either the
sm aller v o lu m e o f u n regu lated lo a n s to p u rch ase
or carry other n on m argin sto ck nor the regu lated
m argin loan total h as sh o w n an y c lo s e co rrela
tion w ith trends in sto ck p rices. M u ch o f th is
len d in g thus appears u nrelated to gen eral m arket
e x p e c ta tio n s.
G e o g r a p h ic a lly , m argin len d in g has b een
con cen trated in a lim ited num ber o f m etro
politan areas. A m o n g th e se , C h ic a g o b an k s
reported the largest total in 1 9 7 4 , w ith h e a v y
loan v o lu m e s in all c a te g o r ie s. N e w Y o rk re
m ain ed the m o st im portant sin g le so u rce o f
regu lated cred it, th o u g h its share in th is total
has d e c lin e d from 2 8 to le s s than 2 0 per cen t
o v er the reporting p erio d . B u t the m o st striking
con cen tration o f m argin len d in g — b oth a b so
lu tely and r ela tiv e to financial re so u rces— o c
curred in the E ast N orth C entral and E ast S ou th
large m u ltiregion a l branch sy ste m s ex p er ie n c ed
Central re g io n s w h ere H o u sto n , D a lla s , and
o n ly a 9 per cen t d e c lin e , w h erea s firms b ased
in N e w Y ork (e x c lu d in g the m ajor branch s y s
M in n ea p o lis-S t. Paul all reported m argin lo a n s
in e x c e s s o f $ 1 0 0 m illio n , and n o le s s than 21
m etrop olitan areas reported sig n ifica n t lo a n v o l
tem s) reported a net drop o f 4 5 per cen t.
u m es.
Ann P. Ulrey, Consultant to the Division of
Research and Statistics of the Board of Governors of
the Federal Reserve System, prepared this article.
N o t e .—
T h e u n iform m argin cred it reports c o v e r a
d y n a m ic p eriod in w h ic h n u m erou s factors e x
p e cted to in flu en ce d em a n d for m argin cred it
210
Federal Reserve Bulletin □ April 1975
c h an ged sharply from o n e reporting date to the
n ext. T h ese in clu d ed sto ck p rices and m arket
a c tiv ity , m argin req u irem en ts, the c o st o f cred it,
ted to m ak e su ch lo a n s o n an un regu lated b a sis,
banks are free to a ssig n g o o d faith loan v a lu e
to the c o lla te r a l.1
and the relativ e attra ctiv en ess o f altern ative
o u tlets for sp ecu la tio n or in v estm en t. A g a in st
B a n k s m a y a lso m ak e u n secu red lo a n s to
c red itw orth y borrow ers for the p u rp ose o f pur
c h a sin g or carrying listed sto ck w ith o u t b e c o m
in g su b ject to R eg u la tio n U . W h ile su ch lo a n s
are cla ssifie d b y b an k s as se cu ritie s cred it, th ey
are not d efin ed as m argin credit eith er in c o m
m on u sa g e or for p u rp o ses o f regu la tio n . O n ly
lo a n s to p u rch ase or carry sto ck (as defin ed in
the reg u la tio n ) that are a lso secu red , at lea st in
part, b y sto ck (s o d efin ed ) are c o n sid ered to b e
m argin cred it. If the sto ck acq u ired is a “ m argin
s t o c k ,” the lo a n is su b ject to R eg u la tio n U ; if
n o t, it is in clu d ed as u n regu lated m argin credit
in the b a n k ’s annual report.
In m id - 1 9 7 4 a total o f $ 6 .7 b illio n regu lated
th is h istorical b a ck g ro u n d , it is p o ss ib le to
id en tify stable e le m e n ts in the structure o f m ar
gin credit and a lso to d istin g u ish th o se c h a n g e s
over tim e that reflect c y c lic a l patterns from th o se
that appear to rep resen t lo n g er-term trends.
SC O PE
A N D
M A R G IN
R E G U L A T IO N
O F
C R E D IT
A cco rd in g to the annual reports, m argin credit
in clu d es all lo a n s to p u rch ase or carry sto ck (and
certain c lo s e ly related eq u ity in stru m en ts that
are d efined as sto ck for p u rp o ses o f m argin
regu lation ) w h en th ese lo a n s are secu red b y
sto ck , sim ila rly d efin ed . L en d ers o f all ty p e s—
b rokers, b an k s, and oth ers w h o m ak e lo a n s in
the norm al cou rse o f their b u sin e ss— are su b ject
to regu lation w h en th ey ex ten d m argin cred it.
Federal R eserv e R eg u la tio n s T (c o v e r in g
brokers and d e a le r s), U (b a n k s), or G (other
len d ers) d eterm in e the initial m argin that b or
row ers m u st su p p ly (their d o w n p a y m en t) b y
sp e c ify in g the m a x im u m loan v a lu e that len d ers
m ay currently a ssig n to “ sto c k ” co lla tera l for
regulated lo a n s.
C redit ex ten d e d to brok erage cu sto m ers in
m argin a ccou n ts m u st b e c o lla tera lized b y m ar
gin sto ck s— th o se liste d eith er on an e x c h a n g e
or on the Federal R e se r v e list o f O T C m argin
sto ck s (com p ara b le issu e s that are traded o v er
the cou n ter)— and th is colla tera l has the loan
v alu e sp ecified
in the current su p p lem en t to
m argin cred it w a s o u tsta n d in g . O f th is, brokers
w ere e x te n d in g m ore than 8 0 per c e n t, w ith N e w
Y ork S tock E x c h a n g e m em b er firm s a cco u n tin g
for nearly all o f that a m ou n t. B a n k s w ere the
so u rce o f m ore than 15 per c e n t, w h ile all other
len d ers (th o se su b ject to R e g u la tio n G ) su p p lied
about 4 per cen t. B a n k s w ere a lso reporting
m ore than $ 2 b illio n u n regu lated m argin cred it.
T h e se d ollar to ta ls, th ou gh su b sta n tia l, m ay
not se e m large rela tiv e to a num ber o f other
credit m a g n itu d es. E v en in 1 9 7 2 , the peak year
for m argin cred it, the $11 b illio n total o u tsta n d
in g w a s sm a ll com p ared w ith real esta te m ort
g a g e d eb t o f $ 5 6 5 b illio n and co n su m er in sta l
m en t d eb t o f $ 1 2 7 b illio n . M argin cred it, h o w
e v e r , has b een sin g le d out for s e le c tiv e control
ev er sin c e 1934 w h en the S ecu rities and E x
c h a n g e A ct d irected the Federal R e serv e to
“ preven t the e x c e s s iv e u se o f credit in the
purch ase or carrying o f s e c u r itie s .”
R eg u la tio n T . S to c k s not so listed h a v e n o loan
Part o f the reason for su ch co n tro ls is h isto r i
v a lu e in m argin a cco u n ts carried w ith b rokers.
c a l, sin c e sp e c u la tiv e trading on m argin s as lo w
T h u s, the entire $ 5 .3 b illio n reported b y brokers
and d ealers in June 1 9 7 4 w a s su b ject to m argin
as 10 per cen t had p la y ed a role in the stock
m arket b o o m that led to the 192 9 crash. M ore
fu n d a m en ta lly , h o w e v e r , the n eed for con trol
req u irem en ts.
T h o se w h o b orrow fro m banks m u st m eet
ov er m argin cred it is inherent in the nature o f
th ese sam e req u irem en ts w h en th ey u se m argin
stock as an a sset. W h en cred it is d irected tow ard
credit to p u rch ase or carry “ m argin s t o c k s ,”
sto ck s that are read ily m ark etab le at p rices that
but b ank s— u n lik e brok ers— can a lso ex te n d
credit to p u rch ase or carry sto ck s that are neither
registered on an e x c h a n g e nor in clu d ed in the
m argin sto ck list. In a sm u ch as th ey are p erm it
Mf these same stocks are pledged to acquire “ margin
stock,” their value is limited to the percentage prescribed
in the current supplement to Regulation U.
The Structure of Margin Credit
resp on d q u ick ly to sh ifts in su p p ly and d em a n d ,
its u n regu lated u se can stro n gly rein fo rce u p
sw in g s and d o w n sw in g s in sto ck p rices and ,
through its im p act on the sto ck m ark et, m a y
h a v e sign ifican t r ep ercu ssio n s on the e c o n o m y
as a w h o le .
W id e ly h eld and a c tiv e ly traded sto ck s len d
th e m se lv e s to u se as co lla tera l b e ca u se th ey are
read ily v a lu ed and are p le d g e d in su ch a form
that it is e a sy for the len d er to se ll th em if
n ecessa ry to settle the d e b t.2 T h u s len d ers can
and d o rely on the co lla tera l rather than o n the
b o rrow er’s cred itw o rth in ess in m a k in g m argin
lo a n s, and the am ou n t e x ten d e d again st a sp e
cific p a ck a g e o f sto ck d ep en d s on the m arket
v a lu e o f the sto ck in clu d ed . If m arket v a lu e s
rise, len d ers are w illin g to in crea se the am ount
o f credit ou tsta n d in g a g ain st that p a ck a g e. In
the ev e n t that su ch v a lu e s fa ll en o u g h to je o p
ardize the lo a n ’s sa fe ty , len d ers ca ll for a d d i
tional m argin; if th ey fa il to r e c e iv e it, th ey sell
collateral to sa tisfy the d eb t. T h e N e w Y ork
S to ck E x c h a n g e sp e cifies a 2 5 per cen t m in i
m u m m a in ten a n ce m argin for all m em b er firm s,
and m an y brokers ro u tin ely issu e c a lls at h igh er
fig u r e s.
T h e clo se r the b o rro w er’s initial m argin is to
the cred itor’s m a in ten a n ce m argin req u irem en t,
the greater the p o ss ib ility that p rice d e c lin e s w ill
lead to m argin c a lls. F o rced se llin g ex erts
d ow n w ard p ressu res on an already fa llin g m ar
k et. T h e n e w d e c lin e s in turn trigger ad d ition al
m argin c a lls , settin g up a se lf-re in fo r cin g spiral
o f se llin g p ressu res, m ore p rice d e c lin e s, and
m ore sa le s.
C o n v e r se ly , sto ck m arket credit m ay b e
p yram id ed in risin g m ark ets. If risin g sto ck
p rices carry the m arket v a lu e o f a cu sto m e r ’s
collateral b ey o n d w h at is n eed ed to support h is
e x is tin g d eb it b a la n ce , a d d ition al cred it, up to
the co lla te r a l’s n ew loan v a lu e , can serv e as h is
initial m argin for n ew p u rch a ses. T h e ad d ition al
211
cred it that can b e su p p orted b y th is e x c e s s
p u rch asin g p o w er d ep en d s o n the current le v e l
o f in itial m argin req u irem en ts. T h e lo w e r the
m a rg in , the greater the upw ard p ressure on
d em a n d for sto c k s and th e greater the con trib u
tion o f m argin cred it to a se lf-r e in fo r c in g u p
w ard spiral w ith h ig h er p rices g en era tin g m ore
e x c e s s p u rch a sin g p o w er . T h e greater the ex ten t
o f su ch p y ra m id in g , the greater in turn w o u ld
b e the m a rk et’s v u ln era b ility to later m argin
c a lls and se lf-r e in fo r c in g p rice d e c lin e s.
T h e c o n c ep t o f e x c e s s iv e cred it u se relates
n ot to the le v e l o f m argin cred it but to the actual
or p o ten tia l im p act o f su ch credit o n the sto ck
m arket. A c c o r d in g ly , in itial m argin req u ire
m en ts are n ot a im ed at restrictin g the a g g reg a te
am ou n t o f m argin credit to so m e p red eterm in ed
le v e l. In stead their tw o -fo ld p u rp o se is first to
lim it the m a g n itu d e o f cred it-b a sed b u y in g
p ressu res gen era ted b y risin g lo a n v a lu e s in
b o o m p erio d s and se c o n d to p ro v id e a buffer
b etw e e n c u sto m e r s’ in itial eq u ity and the m in i
m u m m a in ten a n ce le v e ls that w o u ld trigger
w id esp rea d m argin c a lls.
M A R G IN
B Y
C R E D IT
B R O K E R S
E X T E N D E D
A N D
D E A L E R S
B rok ers and d ea lers are retailers o f m argin
cred it, reh y p o th eca tin g c u sto m e r s’ co lla tera l
w ith b an k s and ch a rg in g a m ark-up o f at lea st
V2 o f a p ercen ta g e p o in t— u su a lly m o r e , e s p e
cia lly in the c a se o f sm all a c c o u n ts. M argin
a ccou n t c u sto m ers h a v e b een th e p rin cip al u sers
o f reg u la ted m a rg in cred it o v e r th e p erio d c o v
ered b y th ese d ata, but their p r ec ise share has
ran ged fro m 7 9 to 8 6 per c en t. B e c a u se b rok er
a g e cu sto m ers h a v e b e e n m o re r e sp o n siv e to
trends in sto c k p r ice s and other d e v e lo p m e n ts
lik e ly to affect m arket e x p e c ta tio n s than h a v e
borrow ers fro m b an k s or other le n d er s, the
share o f m argin cred it su p p lied b y brokers and
2Historically, this ready marketability was limited to
issues listed on the securities exchanges, and for a
number of years Regulations T and U applied to such
issues. Improved communications systems have since
allowed dealers to make broad markets for a number
of issues traded over the counter. Since May 1970,
selected OTC issues have been included within the
regulatory definition of margin stock.
d ea lers h as risen w h e n total cred it u sa g e w a s e x
pan d in g and h a s fa lle n w ith d e c lin in g v o lu m e .
T a b le 1 traces the im p act o f d e c lin in g sto ck
p rices on m argin a cco u n t b o rro w in g fro m 1968
through 1 9 7 0 , fo llo w e d b y the
1 9 7 0 -7 2 up
sw in g and th en th e sharp m arket drop through
212
Federal Reserve Bulletin □ April 1975
TABLE 1
M argin a ccou n t cred it, sto ck p r ic e s,
and m argin req u irem en ts, 1 9 6 8 -7 4
Ju n e 30—
1968
1969
1970
1971
1972
1973
1974
S u m m ary
ch an g es:
1 9 6 8 -7 0 ..
1 9 7 0 -7 2 ..
1972-74 . ..
D eb it
b a l
a n c e s1
P ercen tag e ch an g e
M argin
fro m p re c ed in g y ear
Sto ck re q u ire
m ents
p ric e s2
(per
D ebit
Stock
cent)
b alan ces
p rices
6 ,1 5 0
5 ,0 0 2
3 ,8 3 6
4 ,7 4 3
7 ,6 8 9
6,131
5 ,0 2 5
5 6 .6 4
5 5 .2 0
4 1 .2 8
5 5 .0 6
5 9 .8 7
5 5 .1 4
4 7 .1 4
-2 ,3 1 4
3 ,8 5 3
-2 ,6 6 4
- 1 5 .3 6
18.59
-1 2 .7 3
80
80
65
65
55
65
50
-1 9
-2 3
24
62
-2 0
-1 8
- 3
-2 5
33
9
- 8
-1 5
-3 8
99
-3 5
-2 7
45
-2 1
1In m arg in a cc o u n ts, m illio n s of d o llars.
2N Y S E index.
June 1 9 7 4 . In a g greg a te term s, cred it u sa g e
m o v e d in the sa m e d irectio n as sto ck p r ic e s,
but m ore sharp ly. T h e cu m u la tiv e d e c lin e in
average p rices fro m June 1 9 6 8 to June 1 9 7 0 w a s
27 per cen t— o u tp a ced b y a 38 per cen t drop
in m argin a cco u n t cred it. T h e 2 -y ea r p rice rise
b etw een m id -1 9 7 0 and m id - 1 9 7 2 w a s 4 5 per
cent; ov er the sa m e p e r io d , m argin a cco u n t
credit d o u b led . B y June 1 9 7 4 reced in g sto ck
prices had b rou gh t th e p rice in d e x to a p o in t
21 per cen t b e lo w the m id - 1 9 7 2 le v e l, but d eb it
b ala n ces in m argin a cco u n ts had fa llen 35 per
cen t. T h e co lu m n s h o w in g m argin req u irem en ts
on s u c c e s s iv e reporting d ates su g g e s ts, th o u g h
le s s c o n c lu s iv e ly , that ch a n g es in the le v e l o f
in itial m argin s a ffected r ela tiv e rates o f credit
ex p a n sio n or co n tra ctio n as com p ared w ith p rice
b oth sh arp er-th an -average co n tra ctio n s during
p erio d s o f d e c lin in g cred it u sa g e and le s s
b u oyan t e x p a n sio n s d u rin g years w h en b oth
sto ck p rices and m argin a cco u n t credit w ere o n
the rise. A s a result o f th ese tren d s, the c o lle c
tiv e share o f th ese firm s in reported m argin
a ccou n t cred it drop p ed fro m 3 9 to 2 6 per cen t.
M ea n w h ile the share su p p lied b y lo c a l and re
g io n a l firm s e ls e w h e r e w a s risin g from 12 to
19 per cen t o f the total and that b y la rg e,
m u ltireg io n a l branch sy s te m s , fro m 4 9 to 55 per
c en t. A m ore d eta iled ex a m in a tio n o f d if
fe r e n c e s in len d in g e x p e r ie n c e and in the typ e
o f b u sin ess d o n e b y firm s in th ese three c a te
g o ries su g g e sts that e a c h had attracted a d iffer
in g m ix o f cu sto m ers w h o d isp la y e d d iv erg en t
attitudes tow ard u sin g cred it in the sto ck m arket.
For the reporting u n iv e r se as a w h o le , the
num ber o f firm s su b m ittin g reports an n u ally h as
d e c lin e d ste a d ily e a c h June sin c e 1 9 6 9 , w h e n
371 m em b er firm s o f the N e w Y o rk and A m e r i
can S to ck E x c h a n g e s had at lea st so m e c u sto m
ers w ith m argin a c co u n ts in d eb it status. L a rg ely
as a result o f in d u stry w id e stresses and p r e s
su res, w h ic h le d to c o n so lid a tio n or liq u id a tio n
o f sto c k e x c h a n g e firm s, o n ly 2 3 2 reports w ere
r e c e iv e d in 1 9 7 4 ; th is w a s 4 4 le s s than the
p rev io u s year. N e v e r th e le s s, the d e c lin e in the
num ber o f reporting firm s had rela tiv ely little
d irect e ffe c t o n the am ou n t o f credit a v a ila b le
to m argin c u sto m ers b e c a u se m o st e x is tin g a c
c o u n ts w ere transferred to other firm s in the
reporting u n iv er se .
A s in earlier y e a r s, the 1 9 7 4 reports sh o w ed
m argin cred it h e a v ily co n cen tra ted o n the b o o k s
o f large len d ers; 11 o f the 2 3 2 resp o n d en ts
reported b a la n c es in e x c e s s o f $ 1 0 0 m illio n ,
w h ic h a cco u n ted for n early 6 0 per cen t o f total
ch a n g es ov er the sa m e p erio d s.
cred it. F irm s w ith b a la n c e s o f le s s than $5
T h ese a g g reg a tes confirm the gen eral rela
tio n sh ip b e tw e e n the u se that b rok erage c u s
m illio n n u m b ered 114 but a cco u n ted for o n ly
tom ers m ak e o f m argin cred it to p u rch ase sto ck
and their ex p e c ta tio n s o f near-term ch a n g es in
varied a lm o st as w id e ly in g eo g ra p h ic c o v er a g e
as in v o lu m e o f cred it ou tsta n d in g — ran gin g
sto ck m arket p ric e s. A clo ser a n a ly sis o f in d i
v id u al reports, h o w e v e r , sh o w s great d iv er sity
fro m branch sy s te m s w h o se lo c a l o ffices w ere
a v a ila b le to c u sto m ers th rou gh ou t the N a tio n
4 per cen t o f the reported total. R e sp o n d en ts
o f e x p erie n c e a m o n g resp o n d en ts. M ore im p o r
(and in m a n y fo r e ig n c itie s as w e ll) to firm s
tant for its lon g -ru n im p lic a tio n s, su ch a n a ly sis
rev ea ls that o n e ca te g o ry o f firm s— th o se c o n
co n d u c tin g b u sin e ss fro m a sin g le office in a
d u ctin g b u sin e ss p rin cip a lly w ith in the N e w
fied for p u rp o ses o f th is a n a ly sis as p r o v id in g
Y ork m etrop olitan area— p ersisten tly reported
m u ltireg io n a l c o v e r a g e (d efin ed as a m in im u m
sin g le m etro p o lita n area. T en firm s w ere c la s s i
The Structure of Margin Credit
o f 5 0 offices in w id e ly d isp ersed parts o f the
country); 13 oth ers had at le a st so m e b ran ch es
in n o n co n tig u o u s S tates but fe ll short o f this
standard. T h ere w ere 7 3 firm s that c o n d u cted
a reg io n a l b u sin e ss and 135 that co n fin ed their
a ctiv ities to a sin g le c ity .
T h rou gh ou t the 7 -year p e r io d , all c a te g o rie s
h a v e u n d erg o n e so m e e r o sio n o f n u m b ers, and
sev era l firm s h a v e b e e n r ecla ssified as a result
o f ex p a n d in g or con tra ctin g c o v e r a g e . B u t
b road ly sp e a k in g , m argin c u sto m ers in m o st
areas h a v e h ad — and still h a v e — tw o c h o ic e s in
se le c tin g a broker. T h e y m a y d o b u sin e ss
through the lo c a l office o f o n e or m ore o f the
10 m ajor branch sy s te m s, or th ey m a y se le c t
a firm sp e c ific a lly a sso c ia te d w ith their o w n
m etrop olitan area or re g io n . In June 1 9 7 4 the
total num ber o f su ch firm s p ro v id in g m argin
credit w a s 2 2 2 ; o f th is num ber 9 4 w ere lo ca te d
in the N e w Y ork m etro p o lita n area w h ile 128
w ere lo ca ted e ls e w h e r e th rou gh ou t the cou n try.
R ep ortin g firm s in th e N e w Y o rk -b a sed grou p
ten ded to b e larger than their counterparts e ls e
w h ere. S e v e n te e n w ith m argin a cco u n t d eb its
o f m ore than $ 2 5 m illio n a cco u n ted for m ore
than tw o-th ird s o f the $ 1 .3 b illio n record ed for
the N e w Y ork gro u p . A m o n g firm s b a sed e ls e
w h ere, o n ly six w ere in th is siz e cla ssifica tio n
and th ey w ere ex te n d in g little m ore than o n e -
213
TABLE 2
C u m u la tiv e c h a n g es in m argin a cco u n t d eb its
during e x p a n sio n s and co n tr a c tio n s, 1 9 6 8 - 7 4
P er c en t ch an g e
G e o g ra p h ic co v erag e categ o ries
O th er firms
T im e
p eriod
1 9 6 8 -7 0
1 9 7 0 -7 2
1 9 7 2 -7 4
M u ltireg io n al
b ra n c h system s
..
..
..
33
104
- 331
-4 4
79
-4 2 1
-
-4 5
-
N et im pact:
1 9 6 8 -7 4 ..
N ew Y ork- E lsew here
based
9
-
T otal
32
132
- 18
-3 7
99
-3 3
29
-1 8
1A d ju sted fo r re classification of one re p o rtin g firm to m ultireg io n al c ateg o ry .
fourth o f the $ 9 4 5 m illio n reported b y firm s in
that g eo g ra p h ic ca te g o r y . T h e m ajor branch
sy ste m s w ere e x te n d in g m argin cred it o f n early
$ 2 .8 b illio n in a m ou n ts ran gin g fro m just under
$ 1 0 0 m illio n to m ore than $1 b illio n .
cen t for that grou p . For the m ajor branch s y s
tem s ea c h c y c le p ro d u ced c h a n g e s c lo se r to the
n ation al a v e r a g e, but the 9 per cen t c u m u la tiv e
d e c lin e in m argin a cco u n t cred it fro m June 1968
to June 1 9 7 4 w a s o n ly h a lf as great as that for
the rep ortin g u n iv er se.
E x p r e ssed d iffe r en tly , if the a g g reg a te e x p e
rien ce o f all m em b er firm s o f the N e w Y o rk
and A m erica n S to c k E x c h a n g e s had d u p lica ted
that o f the m ajor branch sy s te m s, d eb its in
gen eral m argin a cco u n ts in June 1 9 7 4 w o u ld
h a v e b een $ 5 .6 b illio n ; if the e x p e r ie n c e o f the
N e w Y o rk -b a sed firm s had b ee n ty p ic a l, the
total m ig h t h a v e b e e n le s s than $ 3 .5 b illio n ; or
if that at reg io n a l and lo c a l firm s o u tsid e N e w
Y ork had set the p a c e , su ch d eb its w o u ld h a v e
b een a lm o st $ 8 b illio n .
T ab le 2 su m m a rizes the d ifferin g im p a cts that
su c c e s s iv e p erio d s o f co n tra ctio n , e x p a n sio n ,
and ren ew ed co n tra ctio n in m argin cred it h a v e
had on ag g reg a te b a la n ces for the three g e o
graphic c o v e r a g e c a te g o r ie s. C u sto m ers in all
c a teg o ries h a v e resp o n d ed to the c o n sta n tly
sh iftin g in c e n tiv e s p ro v id ed b y ch a n g in g sto ck
T h e se d iv erg en t trends d id not resu lt from
m erg ers, liq u id a tio n s, or other structural sh ifts
w ith in the secu r itie s in d u stry. C o m p a riso n s o f
y ea r-o v er-y ea r c h a n g e s at the in d iv id u a l firm s
m a k in g up e a ch c o v e r a g e ca te g o r y (and lim ited
to firms that reported m argin d eb its in e x c e s s
o f $1 m illio n ) rev e a le d the sa m e d isp a rity . F rom
m arket c o n d itio n s, but th e se r e sp o n se s h a v e n ot
blurred the p ersisten t d iv e r g e n c e in rela tiv e
June 1971 to June 1 9 7 2 , for e x a m p le , the a g
g regate o f m argin cred it e x p a n d ed b y 6 2 per
credit u sa g e . A lth o u g h th e p erio d as a w h o le
w a s m arked b y an 18 per cen t cu tb ack in a g g r e
reported
gate cred it u s a g e , m argin a cco u n t credit at re
g io n a l and lo c a l firm s o u tsid e N e w Y ork ro se
on b a la n ce b y 2 9 per cen t; c o n v e r se ly , sharp
c en t. O f 9 3 N e w
Y o rk -b a sed firm s, o n ly 2 9
in c re a ses
sig n ifica n tly
greater
than
a verage (7 5 per cen t or m o re ), w h ile 3 7 sh o w e d
e x p a n sio n s o f le s s than 5 0 per c e n t, w ith th ese
cu tb a ck s and slu g g ish e x p a n sio n at N e w Y ork -
b e lo w -a v e r a g e reports p red o m in a tin g in all siz e
c la s se s. O u tsid e N e w Y o rk , th is pattern w a s
b a sed firm s resu lted in a n et d e c lin e o f 4 5 per
rev ersed ; 6 5
of
117 rep ortin g firm s sh o w e d
214
Federal Reserve Bulletin □ April 1975
a b o v e-a v era g e in crea ses and o n ly 19 reported
b e lo w -a v e r a g e in crea ses. A g a in the pattern ap
p lie d to all s iz e c la s se s.
C o n v e r se ly , in b oth years sin c e 1 9 7 2 , the
num ber o f N e w Y o rk -b a sed firm s reporting
greater-th an -average d e c lin e s in m argin acco u n t
d eb its has b een tw ic e as large as the num ber
lo ca ted e ls e w h e r e , w h erea s o n ly h a lf as m an y
h a v e b een a m o n g th o se rep ortin g less-th a n a verage d ecrea se s (or outright in crea ses) in their
m argin accou n t d eb its. A g a in , this con trastin g
pattern has ex te n d ed to co m p a riso n s b e tw ee n
firms o f sim ilar siz e in the tw o grou p s.
T h is disparate trend in broad group totals can
hardly b e ex p la in e d in term s o f co m p etitio n for
cu stom ers am o n g brok erage firm s. R e g io n a l and
lo ca l firms o u tsid e N e w Y ork w ere the o n ly
ca teg o ry reporting a net in crea se in m argin
credit b etw een 1968 and 1974; if their e x p e r i
e n c e w ere attributable to c o m p e titiv e g a in s
w ith in the indu stry, th ese g a in s w o u ld h a v e had
to be prim arily at the e x p e n se o f m u ltireg io n a l
branch o ffices. B u t that grou p a lso has reported
a c o n sisten tly g r o w in g share o f total m argin
d eb its. T h u s, the d ifferin g trends appear to re
flect d ivergen t attitudes o n the part o f cu sto m ers
p atron izin g ea ch o f the three ca teg o r ie s o f
brokers and d ea lers.
T h e annual reports th e m se lv e s afford so m e
in d ication o f d iffe r en ce s in cu sto m er m ix a m o n g
in d ivid u al reporting firm s. In ad d ition to s h o w
in g data for the three m argin acco u n t ca te g o rie s
(gen eral a cco u n ts, c o n v e r tib le bon d a cc o u n ts,
and sp ecia l su b scrip tio n a cc o u n ts), the reports
p rovid e separate to ta ls for other cu sto m er a c
co u n ts— in clu d in g sh o rt-a cco u n t cred its and free
credit b ala n ces in m argin a cc o u n ts. F rom b e n c h
m ark data c o lle c te d in 1 9 6 8 o n a num ber o f
a cco u n ts, it w a s p o ss ib le to c o m p u te the a v era g e
s iz e s o f acco u n ts in that year. A ll o f th e se can
c a te g o rie s c o m e s from a ctiv e traders— m an y o f
w h o m h a v e large a c c o u n ts. T h is is in d icated not
o n ly b y the h ig h in c id e n c e (e s p e c ia lly in the
N e w Y o rk -b a sed grou p ) o f firm s at w h ic h
a verage d eb it b a la n ces in 1 968 ap p roach ed or
e x c e e d e d $ 2 0 ,0 0 0 , but a lso b y the greater
p ro p en sity o f their c u sto m ers to e n g a g e in a c
tiv itie s that g en era te other ty p es o f cu sto m er
b a la n ces.
In 1 9 7 4 , for in sta n c e, the ratio o f a g g reg a te
sh ort-accou n t cred its to m argin acco u n t d eb its
for the m ajor branch sy s te m s w a s 8 per c e n t,
w h erea s the a g g reg a te ratio for other firm s w a s
tw ic e as h ig h . F irm s, w h ere short cred its are
h ig h rela tiv e to d eb its in m argin a c c o u n ts,
w o u ld appear to h a v e attracted m ore than their
share o f c u sto m ers w h o h ab itu ally m ain tain p o
sitio n s in the m ark et, sh iftin g b e tw ee n the lo n g
and short sid e as their e x p e c ta tio n s d icta te. A t
33 firm s— 2 4 b a sed in N e w Y ork and 9 e ls e
w h ere— short cred its eq u a led m ore than 2 0 per
cen t o f the figure reported for m argin a cco u n t
debt; c o lle c tiv e ly , th ese 33 firm s, w h o se m argin
a ccou n t d eb its m a d e up about 10 per cen t o f
the 1 9 7 4 to ta l, reported m o re than o n e-th ird o f
all short cred its.
T h e relation o f free cred it b a la n ces to d eb it
b a la n ces in m argin a c co u n ts m ay a lso b e re
garded as an in d icator o f cu sto m er c o m m itm en t
to m argin trading as an o u tlet for sp ec u la tiv e
fu n d s. It se e m s p rob ab le that cu sto m ers w h o
w ere “ out o f the m a rk et” o n the reporting date
but w h o had free credit b a la n ces in their m argin
a cco u n ts as a result o f earlier sa le s w ere e x
p e c tin g to u se th o se b a la n ces so o n for stock
p u rch a ses. S e lle r s w h o d id not intend to re-enter
the m arket in the near future probably had
settled their ou tsta n d in g debt and had w ith d raw n
any rem ain in g p ro c e e d s rather than m ain tain in g
fu n d s in n o n -in terest-b ea rin g acco u n ts.
b e u sed to d eriv e so m e in fo rm a tio n rela tiv e to
T h u s an a b o v e -a v e r a g e ratio o f free credit to
cu stom er m ix in th e v a ry in g g eo g ra p h ic c o v e r a g e
d eb it b a la n ces su g g e s ts that a ctiv e cu sto m ers
w ere in a tran sition al cred it status on the report
in g d ate. A t the 10 m ajor branch s y s te m s, the
v o lu m e o f su ch tem porary credit b a la n ces w a s
o n ly 3 .4 per cen t as large as m argin a ccou n t
c a te g o r ie s.
T h e group p rofiles e m er g in g from th ese data
su g g e st that the la rg e, m u ltireg io n a l branch
sy ste m s h a v e attracted (or at lea st a ccep ted ) a
disp rop ortion ate share o f sm a ll, ro u tin ely h a n
d led a cco u n ts, w h erea s a h igh er p roportion o f
m argin b u sin ess at firm s in the other c o v e r a g e
d eb its; for other rep ortin g firm s in the a g g reg a te,
the ratio w a s 7 .5 per ce n t, and nearly h alf o f
th ese free cred it b a la n c es w ere con cen trated at
The Structure of Margin Credit
th o se firm s in the grou p w h ere in d iv id u a l ratios
w ere 10 per cen t or h ig h er.
T h e se and other e le m e n ts in the p rofiles o f
in d iv id u a l reportin g firm s su g g e st that a cco u n ts
o f large and a c tiv e traders h a v e p rob ab ly b een
lo d g e d to a d isp rop ortion ate e x ten t in firm s
p ro v id in g sp e c ia liz e d se r v ic e s for their tran sac
tio n s, and that the la rg est co n cen tra tio n o f su ch
cu sto m ers has b een fo u n d at firm s in the N e w
Y o rk -b a sed ca teg o r y . D u rin g a 7 -y ea r p eriod in
w h ich the m y stiq u e o f th e sto ck m arket as a
sou rce o f q u ick cap ital g a in s w a s e r o d in g , su ch
cu sto m ers m ay h a v e sh ifted fu n d s in substantial
v o lu m e either in to trad ition al a ltern atives (su ch
as puts and c a lls , c o m m o d itie s, and so forth)
or into the sp ectru m o f real e sta te , o il d rillin g ,
cattle fe e d in g , and other p articip ation s that p ro
liferated o v er this p erio d .
S u ch sh ifts m a y a cco u n t for the p ersisten tly
d e c lin in g share o f m argin cred it su p p lied b y
N e w Y o rk -b a sed firm s as a grou p . N o sim ilar
trend w a s apparent a m o n g cu sto m ers o f firm s
b ased e ls e w h e r e — at lea st through the 1 9 7 4
reporting d ate. W h eth er it w a s b eca u se o f their
greater fa m ilia rity w ith sto ck s as a trading m e
dium or b ec a u se th ey had le s s ready a c c e ss to
other o p tio n s, c u sto m ers o f firm s o u tsid e the
N e w Y ork area appear to h a v e retained their
sto ck m arket orien ta tio n and to h a v e c o n tin u ed
to se e k ad d ition al le v e r a g e for their trading
a ctiv itie s.
M A R G IN
B Y
C R E D IT
E X T E N D E D
B A N K S
In June 1974 the $ 3 .3 b illio n o f m argin credit
that w a s ex ten d e d b y b an k s rep resen ted 3 7 per
cen t o f all m argin credit o u tsta n d in g — the h ig h
est share for that group sin c e u n iv erse reporting
b eg a n . In
1 9 7 2 , a year o f peak a ctiv ity b y
m argin acco u n t c u sto m ers at brokers and
d ea lers, ban ks a cco u n ted for o n ly 23 per cen t
o f the total. H o w e v e r , barely on e-th ird o f the
bank c o m p o n en t— about $1 b illio n — w a s in the
form o f regu lated lo a n s com p arab le to th o se that
brokers w ere m a k in g to their m argin cu sto m ers.
T h e rem ain in g $ 2 b illio n to o k the form o f u n
regu lated lo a n s to acq u ire or h o ld n on m argin
215
TABLE 3
M argin cred it at banks: L e n d e r ’s am ou n t
ou tsta n d in g , June 1 9 7 4
L e n d e r’s m argin
cre d it class
(m illions o f d o lla rs)
N u m b er of
banks
P er cent of
m argin credit
L ess th an 1 .............................
1 to 5 .........................................
5 to 10 .......................................
10 to 25 ...................................
25 or m ore .............................
496
246
56
58
22
8.3
17.2
13.7
2 9 .9
3 0 .8
Total ...............................
878
100.0
sto ck s (th o se n eith er registered on a se cu ritie s
e x c h a n g e nor in clu d ed o n the F ederal R ese r v e
list o f O T C m argin sto c k s) to w h ic h brokers
w ere n ot p erm itted to a ssig n any lo a n v a lu e .
For the b a n k in g industry as a w h o le , and e v e n
for m o st b an k s w ith su b stan tial a m ou n ts o f
m argin cred it o n their b o o k s, m argin lo a n s are
a rela tiv e ly in sign ifica n t part o f total b u sin e ss.
O n June 3 0 , 1 9 7 4 , all m argin cred it at b a n k s—
regu lated and u n reg u la ted — w a s le s s than 0 .5
o f 1 per cen t o f total bank d e p o sits o n that d ate.
M o r e o v e r, m argin le n d in g w a s co n cen tra ted at
a rela tiv e ly sm a ll num ber o f b a n k s. A lth o u g h
nearly 4 ,0 0 0 reported so m e m argin lo a n s , o n ly
8 7 8 had a m o u n ts o f $ 2 5 0 ,0 0 0 or m o re o u t
stan d in g— the lo w e r lim it for d eta iled rep ortin g.
O f th is g ro u p , 8 0 b an k s— e a ch o f w h ic h w a s
e x te n d in g m argin cred it in am ou n ts o f $ 1 0 m il
lio n or m o re— a c co u n ted for m o re than threefifths o f the ou tsta n d in g total (T a b le 3 ). In
con trast, 7 4 0 rep ortin g b anks e x te n d e d le s s than
$5 m illio n e a c h and w ere su p p ly in g little m ore
than one-quarter o f the total.
T h e actual and p oten tia l im p act o f bank le n d
in g on the sto ck m ark et, h o w e v e r , is n ot lim ited
to m argin cred it as d efin ed h ere. B a n k s a lso
m ak e other lo a n s for the p u rp o se o f p u rch asin g
or carrying se c u r itie s. From 1 9 7 0 th rou gh 1 9 7 2 ,
su ch lo a n s w ere in clu d ed b y b an k s in their
annual secu rity cred it reports. In ea ch o f th o se
3 years this resid u al ca teg o r y — other secu ritie s
credit— e x c e e d e d $ 1 .2 b illio n , w h ic h w a s su b
stan tially m ore than the am ou n t o f regu lated
credit ou tsta n d in g in the sa m e y ears. S in c e
u n secu red lo a n s to p u rch ase or carry sto ck p re
su m a b ly m a k e up the b u lk o f th is lo a n c a te g o r y ,
216
m an y
Federal Reserve Bulletin □ April 1975
borrow ers
apparently
o b ta in ed
larger
su m s o n the b a sis o f their gen eral cred itw o rth
in ess than the bank c o u ld h a v e a d v a n ced o n the
current loan v a lu e o f their p u rch a ses.
In p rin cip le, u n secu red lo a n s d o not h a v e the
sam e p oten tial m arket im p act as m argin len d in g .
Inasm u ch as sto ck d o e s not serv e as co llateral
for the lo a n , su b seq u e n t in crea ses in its m arket
p rice w o u ld not perm it an in crea se in the am ou n t
lent (p y ra m id in g ), nor can price d e c lin e s b e
rein forced b y m argin c a lls. In p ra ctice, this
d iv o rce m ay b e le s s a b so lu te than it se e m s
b e ca u se fa llin g a sset v a lu e s m ig h t affect the
b orrow er’s cred itw o rth in ess a d v ersely and thus
lead to d em an d s for fu ll or partial rep aym en t
o f a d em and lo a n . S u ch lo a n s w o u ld c o m e
w ith in the leg a l sc o p e o f m argin regu lation o n ly
if it co u ld b e sh o w n that the credit w a s in d irectly
secu red by stock .
Prior to 1 9 7 0 , bank reporting o f secu ritie s
credit (e x c lu d in g lo a n s to brokers and d ea lers,
w h ich h a v e a lw a y s b een ite m iz e d sep arately)
co m b in ed into a sin g le total three ty p es o f
lo a n s— regulated m argin cred it, unregu lated
m argin cred it, and other lo a n s for the p u rp ose
o f purch asing or carrying sec u r itie s. T h e sta tis
tics on secu ritie s cred it that w ere c o lle c te d for
the first tim e in 1 9 7 0 in clu d ed separate totals
for th ese sam e loan c a te g o r ie s. T h e initial tabu
lation revealed that o n ly 2 8 per cen t o f the
reported total w a s regu lated m argin credit; 35
per cent w as reported as un regu lated credit to
p u rchase or carry n on m argin sto ck , and about
38 per cen t fe ll in to the resid u al ca teg o ry d is
c u sse d earlier.
S h ortly after th ese figures b e c a m e a v a ila b le ,
an inquiry undertaken for other rea so n s rev ea led
the e x iste n c e o f w id esp rea d bank len d in g to
borrow ers w h o w ere acq u irin g c o n tro llin g in
terests in other b an k s and p le d g in g their shares
as co llateral. T h e se bank sto ck lo a n s appeared
to con stitu te a la rg e, th o u g h in d eterm in ate,
proportion o f all u n regu lated m argin cred it. B e
c a u se the collateral ty p ic a lly represen ted m ajor
credit b e in g e x te n d e d b y b an k s and m ore than
tw o -th ird s o f the u n regu lated p ortion . L o a n s to
p u rch ase or carry other n on m argin sto ck on the
sam e date am ou n ted to o n ly $ 6 6 0 m illio n — little
m ore than 2 0 per cen t o f all m argin credit at
b an k s.
C h a n g es o v er tim e in a g g reg a te am ou n ts o f
m argin cred it e x te n d ed b y b anks h a v e not par
a lle le d th o se sh o w n earlier for m argin acco u n t
cu sto m ers at brokers and d ea lers; nor has any
c lo s e co rrela tio n w ith the trend in sto ck p rices
or other m arket d e v e lo p m e n ts b een apparent.
B e tw e e n the 1 9 7 2 and 1 9 7 4 reporting d a te s, for
in sta n ce, sto ck p rices fe ll 21 per ce n t, and
m argin a cco u n t c u sto m ers at brokers red u ced
their credit u sa g e b y 35 per cen t; but o v er the
sa m e p eriod total e x te n s io n s o f m argin cred it
b y b an k s in crea sed b y 17 per cen t. B an k sto ck
lo a n s ro se 4 5 per cen t. R eg u la ted credit w a s
up a little le s s than 5 per c e n t, w h ile cred it o n
n on m argin issu e s other than bank sto ck s d e
c lin e d le s s than 4 per cen t. C o n v e r se ly , d uring
the sharp e x p a n sio n from 1 9 7 0 to 1 9 7 2 , w h en
the N e w Y ork S to ck E x c h a n g e p rice in d ex rose
45 per cen t and m argin a cco u n t credit d o u b le d ,
regu lated lo a n s at b an k s ro se o n ly 7 per cen t.
B ro k era g e c u sto m ers h a v e an in c en tiv e to
in crease their b u y in g p o w er by b o rro w in g if
th ey e x p e c t sto ck p rices (at least th o se o f s e
lecte d issu e s) to rise b y am ou n ts that w ill m ore
than repay the c o st o f b o rro w in g . W h eth er or
not th ey fo reca st co rre c tly , it is rea so n a b le to
a ssu m e that their d e c is io n s are m ark et-orien ted
and are g en era lly b a sed o n e x p e cta tio n s o f
near-term price a p p reciation .
T h e m o tiv e s o f bank cu sto m ers are lik e ly to
be m ore varied and c o m p le x . S o m e p resu m ab ly
are m a rk et-o rien ted , th o u g h traders w ith fr e
quent tran saction s that n ece ssita te su b stitu tion s
o f co lla tera l w o u ld find it m ore practical to
fin an ce su ch a c tiv itie s through a m argin a c
c o u n t. O thers m ay b e e x e r c isin g sto ck o p tio n s.
S till other lo a n s are for the p u rp ose o f acq u irin g
con trol o f a corp oration or participating in its
ity ow n ersh ip o f issu e s that w ere c lo s e ly h eld
or se ld o m traded, su ch credit w a s u n lik e ly to
affect aggregate sto ck m arket p rices or a ctiv ity .
m a n a g em en t. S u ch lo a n s are e sse n tia lly issu e-
S in c e 1972 annual reporting fo rm s h a v e p ro
to rein fo rce both u p sw in g s and d o w n sw in g s in
v id ed a separate subtotal for th ese lo a n s , and
on June 3 0 , 1 9 7 4 , bank sto ck lo a n s to ta lin g $ 1 .4
b illio n con stitu ted nearly h a lf o f all m argin
sto ck p rices; cred it o b ta in ed for issu e-o rien ted
tran saction s m a y h a v e su b stan tial im p act on
particular sto ck p r ic e s, but it is le ss lik e ly to
o rien ted rather than m ark et-orien ted .
C redit u sed for m ark et-orien ted trading tends
The Structure of Margin Credit
217
affect aggregate p rice trends. In the lim itin g
c a se — p u rchase o f co n tro l in a c lo s e ly h eld
corporation— m arket im p act co u ld b e e x c lu d e d
by d efin ition .
m o st im portant sin g le so u rce o f regu lated m ar
gin cred it, so m e w h a t e x c e e d in g its 16 per cen t
share o f total bank d e p o sits. Its im p ortan ce in
th is resp e c t, h o w e v e r , has d e c lin e d o v er the
T h e w id er ran ge o f colla tera l that b anks can
accep t for m argin lo a n s a lso in flu en ces the p o
tential m arket im p act o f su ch lo a n s. U n reg u la ted
m argin cred it m u st, b y d efin itio n , b e d irected
tow ard sto ck s that fa il to m e e t the criteria o f
s iz e , m ark etab ility , and breadth o f o w n ersh ip
set for in clu sio n in th e list o f O T C m argin
p eriod c o v e re d b y th ese reports fro m ,2 8 per cen t
to le s s than 2 0 per cen t o f the total. N e w Y ork
b a n k s.w e re a lso an im portant so u rce o f “ o th er”
un regu lated m argin credit (e x c lu d in g bank sto ck
sto ck s. L ack o f th e se ch aracteristics ten d s to
lim it not o n ly the im p act that price flu ctu ation s
m igh t p rod u ce on the sto ck m arket at la rg e, but
also the is s u e ’s a ccep ta b ility as secu rity for
routine lo a n s in w h ic h len d ers rely on collateral
va lu e rather than the b o rro w er’s cred itw orth
in e ss.
G e o g r a p h ic D
is t r ib u t io n
M argin len d in g b y b an k s is w id e ly d istributed
throughout the U n ited S ta tes, but the g eo g ra p h ic
pattern d iffers strik in g ly from that a sso cia ted
w ith m ore gen eral m ea su res o f financial a ctiv ity .
It a lso d iffers a m o n g the three m argin loan
c a teg o ries. (S e e T a b le 4 , p . 2 1 8 .)
In 1 9 7 4 , b ank s in ea c h o f fiv e standard m e t
ropolitan statistical areas (S M S A ’s) reported
m argin credit agg reg a tin g m ore than $ 1 0 0 m il
lio n . C h ic a g o (currently th e m o st im portant
sou rce o f m argin cred it at b a n k s), N e w Y o rk ,
and H o u sto n w ere ea ch su p p ly in g m ore than 10
per cen t o f the national total; D a lla s added about
9 per cen t (d o w n from its 1973 share) and
M in n e a p o lis-S t. P a u l, another 4 per cen t. In a ll,
4 4 S M S A ’s w ere identified as sign ifican t so u rces
o f m argin cr e d it.3
T en o f th ese w ere in S tates on the A tlan tic
C oast. E x cep t for N e w Y o rk , all w ere im portant
prim arily as so u rces o f regu lated lo a n s to pur
ch a se or carry m argin sto c k s. In th is ca teg o ry
th ey contributed 11 per cen t o f the $1 b illio n
ou tsta n d in g , a proportion so m e w h a t h igh er than
their 9 per cen t c o lle c tiv e share in total c o m
m ercial bank d e p o sits on the sa m e date.
A s m igh t b e e x p e c te d o f the N a tio n ’s m ajor
secu rities m ark etin g cen ter, N e w Y ork w a s the
3Defined as either a total exceeding $15 million, or
loans in any one category of $7.5 million or more.
lo a n s ), but th ey w ere e x c e e d e d in that ca teg o ry
b y len d ers in b oth C h ica g o and D a lla s.
R e la tiv e to their fin an cial m a g n itu d e (6 per
cen t o f total bank d e p o sits), banks in C h ic a g o
w ere m ore h e a v ily in v o lv e d in the e x te n sio n o f
m argin cred it than th o se in N e w Y ork . T h e
C h ica g o b an k s w ere m ajor su p p liers o f all three
ty p es o f credit and w ere the le a d in g so u rce o f
other u n regu lated lo a n s— a c a teg o ry in w h ic h
th ey w ere re sp o n sib le for 18 per ce n t o f the
nation al total. F our other E ast N orth C entral
c itie s w ith sig n ifica n t lo a n v o lu m e s w ere e x
ten d in g m argin cred it at a le v e l about in lin e
w ith their rela tiv e d e p o sit m a g n itu d es and w ith
so m ew h a t greater e m p h a sis on regu lated than
on u n regu lated lo a n s.
F iv e S M S A ’s in the E ast S o u th C entral reg io n
w ere a m o n g the 4 4 se le c te d m etro p o lita n areas,
prim arily b e c a u se o f h e a v y loa n v o lu m e in the
bank sto ck ca teg o r y .
B y far the m o st strik in g co n cen tra tio n o f
m argin le n d in g , b oth a b so lu tely and rela tiv e to
financial reso u r c e s, h o w e v e r , o ccu rred in the
W e st C entral r e g io n s— both N orth and S o u th —
w h ere n o le s s than 21 m etrop olitan areas a c
co u n ted for 6 5 per cen t o f all bank sto ck lo a n s
and 3 9 per cen t o f other u n regu lated m argin
cred it. T heir 18 per cen t c o lle c tiv e con trib u tion
to the regu lated cred it total w a s m u ch sm a ller,
but it to o grea tly e x c e e d e d the r e g io n s ’ c o m
b in ed 10 per cen t share o f d e p o sit to ta ls.
P acific C o a st b a n k s, on the other h an d , did
r ela tiv ely little m argin le n d in g . R ep orted v o l
u m e for the tw o S M S A ’s that q u alified as s ig
nificant m argin cred it so u rces w a s le s s than 4
per cen t o f the total and fe ll far short o f their
10 per cen t share in bank d e p o sits. L ik e m an y
E ast C o a st b a n k s, their prim ary role w a s as a
so u rce o f reg u la ted m argin cred it.
B a n k s lo ca ted o u tsid e o f S M S A ’s , alth ou gh
h o ld in g 18 per c en t o f all co m m e rc ia l bank
d ep o sits in June 1 9 7 4 , w e r e not a m ajor so u rce
o f m argin cred it. T h e 163 rep ortin g b a n k s, at
218
Federal Reserve Bulletin □ April 1975
which such loans exceeded the $250,000 m ini
mum, accounted for less than 5 per cent of the
total.
In many of the 44 selected SM SA ’s, reported
totals appear to have been determined largely
by loan demand and lending practices at one
or two banks. In 17 of these areas, the largest
lender accounted for half or more of all margin
credit reported; in only 6 areas did the largest
lender’s share fall below 30 per cent. Even in
Chicago, a single bank reported more than onethird of the $350 million total. Partly as a result
of such concentration, sharp year-over-year
fluctuations in the loan totals reported by indi
vidual SM SA ’s are common, but the broad
regional patterns have remained stable.
On both the East and West Coasts, banks for
the most part extend regulated credit on margin
stocks. M oving toward the middle of the
country, one finds that lenders in the East North
Central area also provide regulated margin
credit in amounts that substantially exceed their
share of bank deposit totals; nevertheless, both
categories of unregulated credit increase in im
portance, and together they account for more
than half of total loan volume. At Chicago, the
principal financial and margin-lending center of
the region, other unregulated margin loans made
up one-third of the 1974 total.
A third regional pattern appears throughout
the other Central States where bank stock loans
constituted two-thirds of all margin credit in
1974. At banks in the northern tier of States,
the remainder represented largely other unregu
lated margin loans, but in the southern tier, it
was divided about equally between regulated
margin credit and loans secured by other non
margin stock. Dallas-Ft. Worth banks departed
from this pattern with a lower proportion of
bank stock loans and a greatly expanded abso
TABLE 4
Geographic distribution of margin credit, 1974 (44 selected SM SA ’s)
Share o f margin credit by loan category
Location of
reporting banks
Share in
deposit
total
Unregulated loans
R egulated
loans
Bank stock
loans
Other
nonmargin
stock loans
Atlantic
N ew York ...................................
Other .............................................
S u btotal ...................................
16.0
9 .4
2 5 .4
19.7
10.9
3 0 .6
3 .0
2 .9
5 .9
11.1
5 .4
1 6 .5
East North Central
Chicago .......................................
Other .............................................
Subtotal ...................................
5.8
4 .7
1 0 .4
10.5
7 .3
1 7 .8
9 .2
3 .0
12. 1
17.8
5 .4
2 3 .2
.....................
1.6
2 .3
5 .8
3 .0
W est North Central .....................
4 .0
5 .0
2 2 .0
12.9
W est South Central
D allas ...........................................
H ouston .......................................
Other .............................................
S u btotal ...................................
1.5
1.3
3.1
5 .9
3 .6
5 .2
4 .6
1 3 .4
11.0
14.2
17.7
4 2 .9
1 1.4
8.5
6 .4
2 6 .3
East South Central
Pacific ................................................
9 .8
7 .4
.8
3.5
44 S M S A ’s, total .........................
5 7 .2
7 6 .9
89 .5
85.3
Other S M S A ’s ...............................
2 5 .0
16.5
8 .2
1 1.2
Outside S M S A ’s ...........................
17.9
6 .9
2.3
3.5
1 0 0 .0
1 0 0 .0
1 0 0 .0
10 0 .0
T o ta l
.......................................
The Structure of M argin Credit
lute and relative volume of other unregulated
credit.
The ratio of total margin credit outstanding
at all U .S . banks in m id-1974 to total commer
cial bank deposits (including those not reporting
margin credit) was 0.0 0 4 3 — less than half of
1 per cent. On both coasts, ratios of SM SA
margin debt to deposits were even lower;
moreover, even major individual lenders (banks
reporting margin loans of $10 million or more)
typically reported ratios of less than 1 per cent.
For the composite of the 21 SM SA ’s in the West
Central region, on the other hand, the ratio
exceeded 1.5 per cent. For Houston the figure
was 3.2 per cent, and for Dallas, 2.5 per cent.
A large majority of the reporting banks
throughout the W est Central region had margin
credit on their books in amounts exceeding 2
per cent of deposit totals, and many banks in
the 13 West South Central SM SA ’s had ratios
of 5 per cent or more.
C
M
a t e g o r ie s
a r g in
L
of
o a n s
Although regulated loans to purchase or carry
margin stock constituted less than one-third of
margin credit at banks in 1974 and have been
declining in relative importance, such loans still
constitute the most widespread form of margin
lending. As in earlier years, most respondents
reported at least some regulated credit on their
books; relatively small lenders— measured both
by deposit size (less than $50 million) and
volume of loans in the category (less than $1
million)— accounted for larger shares of regu
lated than of either bank stock or other unregu
lated credit.
Most regulated loans were made by banks
where such credit was the principal form of
margin lending; but these loans— far more than
other loan types— were concentrated at banks
where margin lending was an unimportant ele
ment in the lending bank’s over-all activities.
A total of 394 respondents had margin cred
it/deposit ratios of less than 1 per cent. This
group accounted for 57 per cent of all credit
to purchase or carry margin stocks; on the other
hand, they had only 11 per cent of credit secured
219
by bank stocks and 27 per cent of loans collat
eralized by other nonmargin stocks. Even
among the largest lenders— those reporting
loans of $10 million or more in the regulated
credit category— 12 out of 17 banks had margin
credit/total deposit ratios of less than 1 per cent.
This compared with 2 of 41 major sources for
bank stock loans and 2 of 11 major lenders in
the other nonmargin stock category.
Data supplied by lenders provide no direct
information on borrower motivation, but the
failure of changes in regulated credit to corre
spond with broad market movements and the
prevalence of large, eratic, year-over-year
changes in amounts reported by individual
banks both support a presumption that a sub
stantial share of borrowing in this category is
issue- rather than market-oriented.
Banks have reported margin loans secured by
bank stock as a separate item for the past 3
years, and each year the total has expanded
sharply. Although defined in terms of collateral
for reporting convenience, the category is com
posed predominantly of loans that enable bor
rowers to acquire a controlling interest in the
bank whose stock is pledged. Differing State
regulations regarding the establishment of
branch banking have played a major role in
accounting for the distinctive geographic distri
bution of loans in this category.
The fact that average loan size is large and
that such loans are heavily concentrated at spe
cific banks helps to explain two other charac
teristics of the bank stock loan profile: (1) the
high number of large lenders (41 banks had
loans of more than $10 million, and they were
providing 57 per cent of all such credit); and
(2) the far greater concentration of loans in this
category at banks with high loan/deposit ratios.
Also characteristic of a loan category in which
typically large, issue-oriented loans predomi
nate have been the sharp year-over-year fluctu
ations in loan aggregates for individual banks
and SM SA ’s.
When loans to purchase or carry nonmargin
stock are secured by issues other than bank
stock, no presumption can be formed concern
ing borrower motivation. Since brokers can as
sign such issues no loan value, both market-
220
Federal Reserve Bulletin □ April 1975
oriented and issue-oriented borrowers must seek
bank credit. Even though the data supplied by
lending banks afford no direct evidence of bor
rower intent, they do supply indications that
nonmargin issues had more limited acceptability
as collateral than margin stock.
Of the three margin credit categories, lending
on nonmargin issues other than bank stock was
the least widespread. Nearly half of all reporting
banks had no loans in this category and only
112 reported loan volumes of more than $ 1
million. For those that did engage in this type
of lending, it was less likely to be the lender’s
major category of margin credit. The annual
reports show that margin lending at most banks
tends to be rather heavily concentrated in one
or another of the three loan categories. On 581
reports in 1974, a single category accounted for
75 per cent or more of the bank’s margin credit
total. For regulated credit, more than 350 of
these undiversified lenders accounted for about
half of the category total, whereas 140 similarly
specialized lenders were extending 63 per cent
of all reported bank stock loans.
Of other unregulated loans, however, only 78
“ specialists” were contributing barely 17 per
cent of the total. Indeed, 55 per cent of all credit
in this category was extended by the 734 banks
at which such loans were less than half of total
margin lending; comparable shares for regulated
and bank stock loans were only 26 and 16 per
cent, respectively. Banks that did accept other
nonmargin stock collateral in significant volume
often were also engaged heavily in the extension
of bank stock loans— a lending pattern suggest
ing that credit, in many cases, may have been
extended less in reliance on the collateral’s
market value than on the borrower’s credit
worthiness and business prospects.
Lenders were also more likely to require
additional collateral for loans secured by non
margin than by margin stock. Not only were
other nonmargin stock loans three times as
likely as regulated loans to be secured in part
by other collateral (24 per cent compared with
8 per cent), but also the distribution of these
partly secured loans suggests that for a number
of lenders this requirement was a matter of
policy. Eighty per cent of such loans were on
the books of 133 banks in which more than half
of all other nonmargin stock loans had addi
tional security. Partly secured loans on margin
stock, on the other hand, were more likely to
occur because large lenders took additional se
curity for an occasional loan.
Such comparisons suggest that, for most
banks in most parts of the country, willingness
to extend credit on nonmargin stock generally
depended to some extent on the borrower’s
relationship with the bank and on his credit
worthiness, if not on the actual pledge of sup
plementary collateral. Where reluctance to rely
on the collateral value of nonmargin stock was
evident, it is reasonable to suppose that issueoriented loans to existing customers made up
a major share of other nonmargin stock credit.
In only a few metropolitan areas— and there
only for a limited number of larger lenders— did
lender profiles suggest that margin credit on
nonmargin stocks might have been routinely
available in quantity to market-oriented borrow
ers.
□
221
Changes in Bank Lending Practices, 1974
The Federal Reserve since 1964 has conducted
quarterly surveys of changes in lending practices
among large commercial banks. Taken in Feb
ruary, M ay, August, and November of each
year, the surveys provide information on
changes in recent and prospective demand for
business loans, in price and nonprice terms of
business lending, and in the banks’ disposition
to make other types of loans including mort
gages. This article continues the series of annual
reviews and summarizes the results of the sur
veys taken at 124 banks in 1974.
In early 1974 interest rates were declining,
and the pace of econom ic activity had begun
to slow . The oil embargo and the prospect of
continued rapid inflation tempered expectations
of growth in bank credit. Later in the year,
however, credit demands placed on banks bur
geoned as businesses sought funds for priceinflated working and fixed capital needs. In
addition, firms were attempting to stockpile in
ventories in expectation of higher prices and/or
shortages. Conditions in the commercial paper
market in the spring and summer effectively
excluded all but the highest quality borrowers,
and nonprime borrowers turned increasingly to
the banks to finance their growing needs for
external financing. Commercial banks, paying
record high rates for certificates of deposit and
Federal funds to meet the intense demand for
loans, adopted policies that were more and more
restrictive in both price and nonprice terms of
lending. Little easing was seen until late in the
year when bank loan rates declined from their
summer highs, but there was still no apparent
easing of nonprice terms of lending.
About one-third of the respondent banks in
the February 1974 survey noted that loan deN o t e . — This article was prepared b y Paul W . Boltz
of the Board’s Division of Research and Statistics.
mand was weaker than at the time of the pre
vious survey in November 1973, and nearly half
of the respondents expected commercial and
industrial loan demand to moderate further.
With loan demand weaker and the cost of funds
declining, banks were in the process of lowering
their prime rates at the time of the survey. In
nonprice terms of lending to business, there
were also some signs of easing for a small
number of respondents, but for the most part
the easing was balanced by a tightening of the
same terms at other institutions. Many respond
ents commented that careful attention was being
given to borrowers whose earnings might be
adversely affected by inflation or by the shortage
of petroleum. About one-fifth of the bankers
reported that they were more willing to make
consumer instalment loans and single-family
mortgage loans than they had been 3 months
earlier.
The moves toward ease in lending policies
were reversed by the banks when it became clear
that business loan demand was not weakening
in the spring and that Federal Reserve policy
had, after some easing in late 1973 and early
1974, returned to a more restrictive stance.
Corporate borrowers sought massive financing
to purchase inventories, and with profits de
pressed in most industries, these borrowers
turned to the commercial banks for short-term
financing. The commercial paper market— the
other principal source of short-term business
credit— was characterized by heightened inves
tor caution in early 1974, and rates on commer
cial paper began rising in late March when credit
demands began to grow. Between the February
and May surveys, rates on prime short-term
commercial paper had risen more than l}h per
centage points. Although the bank prime rate
also rose, it lagged behind the rise in commer
cial paper rates, and prime borrowers sought the
222
Federal Reserve Bulletin □ April 1975
In response to the surging loan demand, there
was widespread tightening of both price and
nonprice terms of lending. Many of the re
spondents commented that the high cost of ad
ditional funds forced the adoption of very tight
lending policies. However, a sizable minority of
banks expressed the desire to improve liquidity
and to reduce the ratio of loans to assets.
Although 80 per cent of the respondents indi
cated a tightening of price terms of lending—
reflecting a rise in the prime rate to 1 l lA per
cent— many of the respondents reported that
less expensive funds at banks. Nonprime bor
rowers were effectively priced out of the com
mercial paper market by widening interest rate
differentials among variously rated issues, and
by early summer relatively little nonprime paper
was being issued.
In the May survey bankers reported policies
and expectations sharply different from those in
February; more than 75 per cent reported
stronger loan demand than 3 months earlier and
almost as many thought the heavy pace would
continue or strengthen in the coming 3 months.
Q U A R TER LY SU R V E Y — F E B R U A R Y 1974
Changes in bank lending practices at selected large banks: Policy on February 15, 1974, 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..............
Anticipated in next 3 months....................
124
124
(100.0)
(100.0)
Total
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged..............................
Compensating or supporting balances. ,
Standards o f creditworthiness...............
Maturity o f term loans.............'.............
Much
stronger
Much firmer
policy
(100.0)
(100.0)
(100.0)
(100.0)
(. 8 )
“(L 6 )
Practice concerning review o f credit lines
or loan applications:
Established customers.............................
New customers..........................................
Local service area customers.................
Nonlocal service area customers...........
124
124
124
124
(100.0)
(100.0)
(100.0)
(100.0)
(3.2)
"(.S)
Factors relating to applicant:2
Value as depositor or source o f collat
eral business..........................................
Intended use o f the loan.........................
124
124
(100.0)
(100.0)
(3.2)
(3.2)
Loans to independent finance companies:3
Terms and conditions:
Interest rates charged..............................
Compensating or supporting balances.
Enforcement o f balance requirements. .
Establishing new or larger credit lines. .
124
124
124
124
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 . 6 )
121
120
122
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
123
123
(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
Much
weaker
15
13
68
55
40
56
1
(12.1)
(10.5)
(54.8)
(44.3)
Essentially
unchanged
(32.3)
(45.2)
Moderately
easier policy
2
6
16
4
(1.6)
(4.8)
(12.9)
(3.2)
51
114
106
108
(41.2)
(92.0)
(85.5)
(87.1)
68
4
(54.8)
(3.2)
12
(9.7)
2
12
3
14
(1.6)
(9.7)
(2.4)
(11.3)
115
88
108
96
(92.8)
(71.0)
(87.1)
(77.4)
7
20
13
13
(5.6)
(16.1)
(10.5)
(10.5)
20
(16.1)
98
1
(. 8 )
112
(79.1)
(90.4)
5
5
9
12
(4.0)
(4.0)
(7.3)
(9.7)
77
117
114
90
(62.1)
(94.4)
(91.9)
(72.6)
0
40
2
1
20
(32.3)
(1.6)
(.8)
(16.1)
(77.4)
(77.2)
(69.5)
(76.7)
(77.1)
23
(11.5)
96
95
84
92
94
24
(4.1)
(5.8)
(5.7)
3
5
9
13
14
(19.4)
(17.1)
(19.0
(6.7)
(5.7)
(. 8 )
4
9
(3.3)
(7.3)
101
105
(82.1)
(85.4)
18
(14.6)
(6.5)
(2.4)
(4.1)
(7.4)
(1 0 . 8 )
Much
easier policy
2
(1 . 6 )
2
(1 . 6 )
.6 )
Essentially
unchanged
(.8 )
(.8 )
(. 8 )
(5.6)
Moderately
less willing
Considerably
less willing
124
123
Essentially
unchanged
Moderately
firmer policy
124
124
124
124
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..........................................
Moderately
stronger
Moderately
more willing
21
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 o f financing dealer inventory and carrying instalment
loans generated through the sale of the parent company’s products.
Changes in Bank Lending Practices, 1974
223
after the May survey, though not at the extreme
pace of the spring. In the survey taken in August
about half of the respondents were experiencing
heavier demands for business loans than they
had in May, and a large majority of respondents
expected such demand to continue or to inten
sify further. Even though loan demand sw elled,
banks were attempting to slow loan growth. N o
banks on the panel reported any easing in price
or nonprice terms of lending to business, and
the process of tightening continued at a majority
of the banks. The most common reasons given
bank rates were still low relative to market rates
and, therefore, they stiffened compensating bal
ance requirements. The purpose of the loans and
customer relationships of the loan applicants
also became more critical determinants of
whether loans were made, as the bankers at
tempted to maintain the flow of credit to estab
lished customers. The severe tightening of loan
policies extended to financial business bor
rowers, consumers, and mortgage borrowers.
In spite of tight bank lending policies, busi
ness loans at banks continued to grow rapidly
Q U A R T E R L Y SU R V E Y — M A Y 1974
Changes in bank lending practices at selected large banks: Policy on M ay 15, 1974, compared
w ith 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.............
Anticipated in next 3 months...................
124 (100.0)
124 (100.0)
Total
Much
stronger
38
4
(30.6)
(3.2)
Much firmer
policy
Loans to nonfinancial businesses:
Terms and conditions
Interest rates charged.................................
Compensating or supporting balances. .
Standards o f creditworthiness..................
Maturity o f term loans..............................
124
124
124
124
(1 0 0 . 0 )
(1 0 0 . 0 )
( 1 0 0 .0 )
(1 0 0 . 0 )
60
27
26
(48.4)
Practice concerning review o f credit lines
or loan applications:
Established customers................................
New customers............................................
124
124
Moderately
stronger
Essentially
unchanged
Moderately
weaker
58
27
24
58
4
35
(46.8)
(21.8)
Moderately
firmer policy
(19.4)
(46.8)
Essentially
unchanged
(2 1 . 8 )
(2 1 . 0 )
(32.3)
(40.3)
(36.3)
11
(8.9)
40
50
45
28
(2 2 . 6 )
23
45
53
84
(18.5)
(36.3)
(42.7)
(67.7)
3
47
4
41
(2.4)
(37.9)
(3.3)
(33.3)
52
50
48
40
(41.9)
(40.3)
(39.0)
(32.5)
69
26
70
41
(2 1 . 0 )
(56.9)
(33.4)
Nonlocal service area customers.............
123
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
Factors relating to applicant:2
Value as depositor or source o f collat
eral business............................................
Intended use o f the loan............................
124
124
(100.0)
(100.0)
32
22
(25.8)
(17.7)
47
39
(37.9)
(31.5)
45
63
(36.3)
(50.8)
Loans to independent finance companies:3
Terms and conditions:
Interest rates charged................................
Compensating or supporting balances. .
Enforcement o f balance requirements...
Establishing new or larger credit lines. .
124
124
124
124
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
31
(25.0)
(8.9)
(14.5)
(29.0)
25
24
29
39
(20.2)
(19.4)
(23.4)
(31.5)
68
89
77
48
(54.8)
(71.7)
(62.1)
(38.7)
Local service area customers..............
123
Total
Willingness to make other types of loans:
Term loans to business..............................
Consumer instalment loans......................
Single-family mortgage loans...................
Multifamily mortgage loans.....................
All other mortgage loans..........................
Participation loans with correspondent
banks.....................................................
Loans to brokers........................................
11
18
36
Considerably
less willing
63
95
64
67
55
(50.8)
(77.2)
(52.9)
(55.9)
(45.8)
(20.3)
(2 1 . 8 )
83
78
(66.9)
(63.4)
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
15
5
26
25
21
(17.5)
46
18
30
28
44
124
123
(100.0)
(100.0)
12
20
(9.7)
(16.3)
27
25
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.
(37.1)
(14.6)
(24.8)
(23.3)
(36.7)
121
120
120
124
123
(1 2 . 1 )
Essentially
unchanged
(4.1)
(21.5)
(2 0 . 8 )
(3.2)
(28.2)
Moderately
easier policy
Much
easier policy
(. 8 )
(1 . 6 )
(. 8 )
(55.7)
Moderately
less willing
Much
weaker
(. 8 )
(. 8 )
(. 8 )
(. 8 )
Moderately
more willing
5
Considerably
more willing
(4.1)
1
(-8 )
2
(1 . 6 )
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 o f the parent company’s products.
224
Federal Reserve Bulletin □ April 1975
recede from this peak until October— after the
intense demand for short-term business credit
at banks had abated. The effects of a turn toward
ease in monetary policy at midyear reduced
pressures in financial markets generally, and
many businesses were restructuring their bal
ance sheets toward long-term debt at this time,
lessening the need for short-term borrowing at
banks. In the November survey one-third of the
respondents reported that loan demand from
businesses was not so strong as in August, and
a slightly higher proportion of the bank officers
for the sharp credit stringency were concern
over bank liquidity and apprehension about
econom ic conditions, but a few bankers indi
cated that the high rates in money markets were
causing them to curb loan growth. Most bankers
reported higher compensating balance require
ments and more strict evaluation of the credit
worthiness of loan applicants, and most were
less willing to make term loans to businesses
or to make real estate loans.
The prime rate, which had reached 12 per
cent at the time of the August survey, did not
Q U A R TER LY SU R V E Y — A U G U ST 1974
Changes in bank lending practices at selected large banks; Policy on August 15, 1974, compared
w ith 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...............
Anticipated in next 3 m onths....................
124
124
(100.0)
(100.0)
Total
Much
stronger
16
2
(12.9)
(1 . 6 )
Much firmer
policy
Moderately
stronger
Essentially
unchanged
Moderately
weaker
47
41
55
63
18
(37.9)
(33.1)
Moderately
firmer policy
(44.4)
(50.8)
Essentially
unchanged
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged..............................
Compensating or supporting balances.
Standards of creditworthiness...............
Maturity o f term loans...........................
124
124
124
124
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
36
40
37
26
(29.0)
(32.3)
(29.8)
(2 1 . 0 )
59
44
38
42
(47.6)
(35.5)
(30.6)
(33.9)
29
40
49
56
(23.4)
(32.2)
(39.6)
(45.1)
Practice concerning review o f credit lines
or loan applications:
Established customers..............................
New customers..........................................
Local service area customers.................
Nonlocal service area customers...........
124
123
123
123
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
13
65
14
49
(10.5)
(52.8)
(11-4)
(39.8)
56
33
50
34
(45.2)
(26.8)
(40.7)
(27.6)
55
25
59
40
(44.3)
(20.4)
(47.9)
(32.6)
Factors relating to applicant:2
Value as depositor or source o f collat
eral business...........................................
Intended use of the loan.........................
124
124
(100.0)
(100.0)
45
33
(36.3)
(26.6)
41
46
(33.1)
(37.1)
38
45
(30.6)
(36.3)
Loans to independent finance companies:3
Terms and conditions:
Interest rates charged..............................
Compensating or supporting balances.
Enforcement o f balance requirements..
Establishing new or larger credit lin es..
124
124
124
123
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
17
17
26
63
(13.7)
(13.7)
34
26
40
23
(27.4)
(32.3)
(18.7)
73
81
58
37
(58.9)
(65.3)
(46.7)
(30.1)
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..........................................
121
39
47
50
124
124
(100.0)
(100.0)
20
120
118
36
8
16
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.
(51.2)
Considerably
less willing
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
124
123
(2 1 . 0 )
(2 1 . 0 )
Moderately
less willing
Essentially
unchanged
(29.0)
(6.5)
(32.5)
(39.8)
(41.3)
41
27
32
23
32
(33.1)
47
(26.7)
(19.5)
(26.4)
48
48
39
(37.9)
(69.9)
(40.0)
(40.7)
(32.3)
(12.9)
(16.1)
38
32
(30.6)
(25.8)
70
72
(56.5)
(58.1)
(2 2 . 0 )
86
6
Much
weaker
(4.8)
(14.5)
Moderately
easier policy
Much
easier policy
Moderately
more willing
Considerably
more willing
0
.6 )
(. 8 )
3 “Independent,” or “noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale of the parent company’s products.
Changes in Bank Lending Practices , 1974
225
had eased moderately, but there was further
tightening in nonprice terms of lending to busi
ness at many of the respondent banks. Almost
half of the banks stiffened their requirements
for creditworthiness of borrowers, apparently
because of the worsening econom ic conditions.
Moreover, the November survey showed almost
no easing in the respondents’ disposition to
make consumer loans or mortgages.
□
thought loan demand would be weaker in the
coming 3 months. But after three consecutive
quarters of very rapid growth in business loans,
moves toward easier lending policies in the
N o v em b er su rvey w ere m o d est. S ev eral
respondents reported they were trying to lower
loan/deposit ratios and to improve the quality
of their loan portfolios. About one-third of the
respondents indicated that interest rate policies
Q U A R T E R L Y SU R V EY — N O V E M B E R 1974
Changes in bank lending practices at selected large banks: Policy on November 15,1974, compared
w ith policy 3 months earlier
Number of banks; figures in parentheses indicate percentage distribution of total banks reporting
Item
Strength of demand for commercial and in
dustrial loans:1
Compared with 3 months earlier.................
Anticipated in next 3 months.......................
Total
124
124
(100.0)
(100.0)
Total
Much
stronger
1
Much firmer
policy
Loans to nonfinancial businesses:
Terms and conditions:
Interest rates charged.................................
Compensating or supporting balances. .
Standards of creditworthiness.................
Maturity o f term loans..............................
124
124
124
124
(100.0)
(100.0)
(100.0)
(100.0)
4
7
19
9
Practice concerning review o f credit lines
or loan applications :
Established customers...........................
New customers......................................
Local service area customers............. .
Nonlocal service area customers. . . .
124
124
123
123
(100.0)
(100.0)
(100.0)
(100.0)
32
3
24
Factors relating to applicant:2
Value as depositor or source o f collat
eral business........................................
Intended use o f the loan.......................
124
(100.0)
1 24
(100.0)
Loans to independent finance companies:3
Terms and conditions:
Interest rates charged................................
Compensating or supporting balances. .
Enforcement o f balance requirements...
Establishing new or larger credit lines. .
124
124
124
124
(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........................................
(3.2)
(5.6)
(15.3)
(7.3)
(1 . 6 )
Moderately
weaker
16
6
66
63
41
53
(12.9)
(6.5)
Moderately
firmer
21
33
35
26
(53.2)
(50.8)
Essentially
unchanged
(16.9)
(26.6)
(28.2)
57
84
70
(46.0)
(67.8)
(56.5)
(70.9)
(2 1 . 0 )
30
28
23
31
(24.2)
(18.7)
(25.2)
87
55
91
63
(70.2)
(44.3)
(74.0)
(51.2)
15
(12.1)
28
(22.6)
81
(65.3)
24
(19.4)
37
(29.8)
61
(4 9 .2)
(12.9)
85
103
89
2
6
13
26
(1 . 6 )
(4.8)
(10.5)
(2 1 . 0 )
Considerably
less willing
121
120
122
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
(1 0 0 . 0 )
15
5
19
26
23
(4.1)
(15.7)
(21.7)
(18.9)
123
123
(100.0)
(100.0)
10
10
(8 . 1 )
(8 . 1 )
124
123
Essentially
unchanged
(25.8)
(2.4)
(19.5)
2
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.
(0 . 8 )
Moderately
stronger
(1 2 . 1 )
16
15
22
27
(2 2 . 6 )
(1 2 . 1 )
(2 1 . 8 )
(17.7)
Moderately
less willing
68
26
93
80
74
73
14
16
(11.4)
(13.0)
90
95
86
(69.4)
(75.5)
(6 6 . 1 )
Much
easier policy
(33.9)
" 1 ...... (-’8 )
5
9
6
5
(4.0)
(7.3)
(4.9)
(4.1)
2
(1 . 6 )
21
(16.9)
(83.1)
(71.8)
(54.8)
Essentially
unchanged
(16.9)
(16.3)
(16.5)
(16.7)
(21.3)
21
20
20
20
(6 8 . 6 )
(33.1)
(42.7)
Moderately
easier
42
Much
weaker
(2.4)
Moderately
more willing
2
4
2
(1 . 6 )
(3.3)
(1.7)
Considerably
more willing
(. 8 )
(61.6)
(59.8)
(73.2)
(77.3)
(7.3)
(1 . 6 )
3 “Independent,” or “noncaptive,” finance companies are finance
companies other than those organized by a parent company mainly
for the purpose o f financing dealer inventory and carrying instalment
loans generated through the sale o f the parent company’s products.
226
Loan Commitments at
Selected Large Commercial Banks
N ew
S ta tis tic a l S e rie s
With this article, the Federal Reserve begins
publication of a new statistical series on loan
commitments at selected large commercial
banks. The data, reported monthly, cover com
mitments at 138 large banks— 122 member
banks and 16 nonmember banks— as of the last
business day of each month. A monthly statisti
cal release w ill be available beginning in May
1975.
The volume and composition of the loan
commitments of commercial banks have had a
growing impact on the flow of credit in the
econom y. W hile formal commitments have
always been a part of commercial banking, the
size of such commitments relative to outstand
ing loans has been expanding in recent years,
as borrowers have sought to confirm their
sources of short-term financing. Although such
arrangements have allowed banks to enlarge
their income from fees and also to form a closer
association with prospective borrowers, they
have restricted the flexibility of banks to grant
or refuse new loans. Nevertheless, by increasing
their reliance on interest-sensitive liabilities
such as large certificates of deposit or Federal
funds, large banks have, for the most part, been
able to meet their loan commitments even dur
ing periods of credit restraint.
To gain a better understanding of commit
ments and of their implications for monetary
policy, the Federal Reserve has experimented
with loan commitment surveys. In such surveys
there have been two recurring problems: ( 1 ) the
variation among banks in the definition of com
mitments and (2) the degree of formalization
of individual commitments. The definition of
TABLE 1
Unused commitments at selected large banks
In billions o f dollars
T o com m ercial and industrial firms
M onth-end
1975— January ................
February ............
Total
unused
com m itm ents1
140.5
142.3
Formalized agreem ents
Total
105.0
105.6
Term2
R evolving--*
Other4
6 .2
6.1
2 7 .9
2 8 .7
4 .4
4 .4
1Unused com m itm ents are the amounts still available for
lending under official prom ises to lend that are expressly
conveyed to the bank’s custom ers orally or in writing, usually
in the form of a form ally executed agreement signed by one
of the bank’s officers.
2 Com m itm ents for term loans are those for loans with an
original maturity o f more than 1 year.
3 R evolving credits are com m itm ent agreements whereby the
borrower may draw dow n and repay loans at will with no
repayment penalty and under w hich the com m itm ent rebounds
by an equal amount after a takedown has been repaid.
4Other com m itm ents are expressions of w illingness to lend,
other than for term loans and revolving credits, that are made
T o nonbank
financial
Confirmed institutions
lines5
66 .5
6 6 .4
2 9 .6
3 1 .0
For real
estate
loans
5 .9
5.7
known to the customer and are characterized by detailed formal
agreements specifying the terms and conditions under which
a loan is to be made.
5Confirmed lines of credit represent general expressions of
w illingness to lend, other than for term loans or revolving
credits, that are made known to the customer but are not
characterized by detailed formal agreements specifying the
terms and conditions under which a loan is to be made.
N o t e . — Included in this series are 138 w eekly reporting
banks; these banks account for approxim ately 85 per cent of
com m ercial and industrial loans, 95 per cent of nonbank
financial loans, and 75 per cent of real estate loans of all w eekly
reporting banks.
N ew Statistical Series
227
TABLE 2
Outstanding loans made under commitments at selected large banks
In billions o f dollars
T o com m ercial and industrial firms
M onth-end
1975-January ..................
February ................
Total loans
made under
com m itm ents1
136.9
134.7
Form alized agreements
Total
9 3 .8
9 1 .5
Term2
R evolving3
Other4
2 7 .0
2 6 .8
2 8 .8
2 7 .7
6 .6
6 .5
1Loans made under com m itm ents are all outstanding loans,
less repayments of principal, made under com m itm ents cur
rently or previously in force.
2 Term loans are loans with an original maturity o f more
than 1 year.
3 Loans made under revolving credits are loans under agree
m ents whereby the borrower may draw dow n and repay loans
at w ill with no repayment penalty and under w hich the co m
m itment rebounds by an equal amount after a takedown has
been repaid.
4 Loans made under other com m itm ents are loans made under
expressions of w illin gn ess to lend, other than for term loans
and revolving credits, that are made known to the custom er
commitments being used in the monthly loan
commitment survey has been constructed to
reflect different banking practices, while being
sufficiently narrow to permit valid comparisons
over time. Commitments are defined as official
promises to lend that are expressly conveyed
to the bank’s customers either orally or in writ
ing. A written commitment is usually a formally
executed agreement or letter signed by one of
the bank’s officers.
The data collected in the survey are for un
used commitments, which are the amounts still
available for lending under commitment ar
rangements in effect on the last day of the
month; that is, the remaining portion of a par
tially used commitment is reported as an unused
commitment. Also collected are the amounts of
outstanding loans made under commitments;
such amounts cover all loans (less repayments
of principal) made under commitments currently
or previously in force. However, not all out
standing commitments and loans made under
commitments are reported in the survey. Data
are requested only for unused commitments that
Confirmed
lin es5
31 .5
30 .5
T o nonbank
financial
institutions
Real
estate
loans
2 2 .4
2 2 .6
2 0 .8
2 0 .6
and are characterized by detailed formal agreem ents specifying
the terms and conditions under w hich a loan is to be made.
5Loans made under confirmed lines of credit are loans made
under general expressions of w illin gness to lend, other than
for term loans or revolving credits, that are made known to
the custom er but are not characterized by detailed formal
agreem ents specifying the terms and conditions under which
a loan is to be made.
N o t e .— Included in this series are 138 w eek ly reporting
banks; these banks account for approxim ately 85 per cent of
all com m ercial and industrial loans, 95 per cent of all nonbank
financial loans, and 75 per cent of all real estate loans o f all
w eek ly reporting banks.
the bank anticipates will result in loans at do
mestic offices of the banks and for loans made
under commitments at domestic offices of the
banks.
Coverage is further limited to certain types
of domestic commitments and loans. The three
principal categories of commitments and loans
are those to commercial and industrial firms,
to nonbank financial institutions (insurance
companies, finance companies, savings and loan
associations, and so forth), and for real estate
loans. These three groups of loans account for
about three-fourths of the outstanding loans at
the reporting banks.
The results of the surveys taken at the end
of January and February 1975 are shown in
Tables 1 and 2; the data are not seasonally
adjusted. The survey form is reproduced on pp.
228 and 229.
To be included on the mailing list for this
statistical release, address requests to Publica
tions Services, Division of Administrative
Services, Board of Governors of the Federal
Reserve System, Washington, D .C . 20551.
228
Federal Reserve Bulletin □ April 1975
C O N F ID E N T IA L
F R 18a
O M B
No. 5 5 -R 0 2 4 6
A p p ro v a l Expires 1 2/3 1 /7 5
M O N T H L Y S U R V E Y O F L O A N C O M M IT M E N T S
As of last d a y ,____________________________________________________
(m o nth,
year)
In order to reduce reporting burden, banks may elect to include
only those single commitments that are greater than $100,000. Otherwise,
commitments should be reported without any limitation as to individual
size. The $100,000 cut-off, if adopted, should apply uniformly to all
domestic offices of the bank. Please check which characterizes reporting
at your bank.
□
(a) Single commitments only over $100,000
(b) No size limitation
□
( F o r f u r t h e r i n s t r u c t i o n s a n d c o m p l e t e d e f i n i t i o n s , see re v er s e sid e )
DOMESTIC OFFICES OF BANK ONLY
COMMITMENTS, INCLUDING CONFIRMED LINES
UNUSED
Mils.
Thous.
USED
Mils.
FOR COMMERCIAL AND INDUSTRIAL LOANS
(exclude mortgages and loans for purchasing and carrying securities)
Commitments for term loans ___________________________________
Commitments for revolving credits .
Sum of commitments for term loans and revolving credits .
Confirmed lines of credit _______________________________
Other commitments for commercial and industrial loans
Total
FOR LOANS TO NONBANK FINANCIAL INSTITUTIONS
(exclude loans for purchasing and carrying securities and
mortgages; include loans for mortgage w arehousing)________
FOR MORTGAGES
(include mortgages to commercial and industrial firms, to
nonbank financial institutions, and to all other units)____
Signed -
T itle .
Name and location of b a n k .
PLEASE RETURN THE COMPLETED QUESTIONNAIRE TO
THE FEDERAL RESERVE BANK NOT LATER THAN TEN
WORKING DAYS AFTER THE LAST DAY OF MONTH
Thous.
TOTAL
Mils.
Thous.
N ew Statistical Series
229
IN S T R U C T IO N S
This survey should cover alt commitments of the types
indicated made at any domestic office of the reporting bank,
even if these commitments are taken down at another domestic
office. Include comm itm ents made by the bank's international
division if they are made at domestic offices, are of the types
indicated on the face of this form, and will result in loans at
domestic offices. Exclude commitments originating at the
bank's foreign offices, even if the commitments require head
office approval. Do not om it commitments merely because-they
are not legally binding or require no com m itm ent fee.
Promises to issue letters of credit or to execute accept
ances do not constitute commitments in the sense used in this
survey. (See the definition of "com m itm ents" below.)
In some cases, in attem pting to classify a firm as "com
mercial and industrial*," "nonbank financial," or other (not to
be reported), there may be ambiguity because the firm is en
gaged in diverse activities. Under these conditions, classify the
firm on the basis of which line of business produces the largest
gross sales or revenues.
On occasion, a com m itm ent covers several affiliated
corporations. For example, if a parent is classified as "com
mercial and industrial" and one or more subsidiaries is classi
fied as "nonbank financial," divide the total comm itm ent to the
affiliated group in proportion to individual limits.
D E F IN IT IO N S
Commitments are official promises to lend that are
expressly conveyed, orally or in writing, to the bank's
customers. Such commitments are usually in the form of a
formally executed agreement or a letter signed by one of the
bank's officers. Oral commitments made by bank officers to
customers are usually accompanied by some docum entation
for the bank's own records such as a notation in the customer's
credit file. Exclude authorizations (internal guidance lines)
where the customer is not informed of the amount. Exclude
cases such as those where loan funds are temporarily unavail
able pending loan committee approval.
Unused com m itm ents are the amounts still available
under com m itm ent arrangements, but not borrowed, as of
the indicated date. Exclude any takedowns, expirations, and
cancellations.
Used comm itments are all loans, less repayments of
principal, made under comm itments currently or previously
in force.
Total commitments are all used plus unused commitments.
C&l (commercial and industrial) loans correspond to
those loans Specified in the Call Report instructions for Sched
ule A, item 5 and the instructions for the Weekly Condition
Report, item 2(h). These loans are to nonfinancial, nonfarm
businesses. Include loans to finance construction in process not
secured by a mortgage or other lien on real estate. Exclude
mortgages and loans for the purpose of purchasing and carrying
securities.
C&l term loans are all C&l loans, except revolving credits,
with original maturities longer than one year.
C&l revolving credits are C&l loans arising from formal
agreements under which the borrower may draw down and
repay loans at will with no prepayment penalty and under
which the com m itm ent rebounds by an equal am ount after a
takedown has been repaid.
Confirmed lines of credit are general expressions of
willingness to lend, other than for term loans and revolving
credits, that are made known to the customer but are not
characterized by detailed formal agreements specifying the
terms and conditions under which a loan is to be made. Such
lines are sometimes referred to as "advised lines" or "dis
closed lines."
Other commitments for C&l loans are expressions of
willingness to lend, other than for term loans and revolving
credits, that are made known to the customer and are character
ized by detailed formal agreements specifying the terms and
conditions under which a loan is to be made.
Loans to nonbank financial institutions are the loans
specified in the Call Report instructions for Schedule A, item
2(b), "loans to other financial institutions," and in the instruc
tions for the Weekly Condition Report, item 2(d). These are
loans (other than mortgages, Federal funds sales, or loans for
purchasing and carrying securities) to insurance companies,
finance companies, factors, mutual savings banks, credit unions,
savings and loans, federal credit agencies--e.g., Federal Home
Loan Banks, Federal Land Banks--and other private nonbank
financial institutions, except brokers and dealers. Include loans
for mortgage warehousing, but not mortgage loans themselves.
Mortgage loans are those specified in the Call Report
instructions for Schedule A, item 1, real estate loans, and in
the instructions for the Weekly Condition Report, item 2(a).
Include all loans secured primarily by mortgages, deeds of trust,
land contracts, or other liens on real estate. Exclude loans to
finance construction in process if not secured by a mortgage or
other lien on real estate.
230
Record of Policy Actions
of the Federal Open Market Committee
M E E T IN G H E L D O N J A N U A R Y 2 0 - 2 1 , 1 9 7 5 1
1.
D o m e s tic p o lic y d ir e c tiv e
Preliminary estim ates of the C om m erce Department indicated that
real output of goods and services (real gross national product) had
fallen at an annual rate of about 9 per cent in the fourth quarter
of 1974, after having declined at an average rate of about 3.5
per cent over the first three quarters of the year. Staff projections
suggested that real econom ic activity w ould continue to recede in
the first half of 1975; that the rate of increase in prices, w hile
still rapid, w ould moderate; and that nominal G NP w ould continue
to grow at a slow pace.
In D ecem ber retail sales had risen som ew hat, according to the
advance estim ate, after having declined considerably in the preced
ing 3 m onths. The index of industrial production fell sharply further
in D ecem ber; curtailments in output were large and widespread
in part because of efforts to liquidate inventories. Em ploym ent
cutbacks also were widespread, especially am ong manufacturing
establishm ents. The unem ploym ent rate rose from 6 .5 to 7.1 per
cent, and the number of persons with only part-time jobs continued
to increase.
A verage w holesale prices of industrial com m odities were un
changed in D ecem ber— after having risen much less rapidly from
August to N ovem ber than earlier in the year— as declines in a
number of basic com m odities offset increases in m achinery and
other more highly fabricated products. W holesale prices of farm
and food products declined, follow in g 2 m onths of substantial
increases. During the final 3 months of 1974 the advance in the
index of average hourly earnings for private nonfarm production
workers w as considerably less rapid than in the tw o previous
quarters.
In his State of the U nion m essage on January 15, the President
lrrhis meeting began on the afternoon of January 20 and continued on the
following day.
R ecord of Policy Actions of FO M C
set forth a program of fiscal stim ulus, w hich included cash refunds
of 1974 personal incom e taxes in tw o equal instalm ents— in M ay
and Septem ber of this year— and an increase for 1 year in the
investm ent tax credit for businesses and farmers. The proposed
tax reductions w ere estim ated to amount to $ 1 2 billion for individ
uals and $4 billion for businesses and farmers. In addition, the
President proposed excise taxes and import fees on petroleum and
ex cise taxes on natural gas to reduce the use of these energy
sources; rem oval of price controls from dom estic crude oil to
encourage production; and a tax to recover the w indfall profits
resulting from the decontrol of prices. The taxes and fees w ould
yield $30 billion in Federal revenues, on an annual basis, which
w ould be returned to the econom y through a permanent reduction
in taxes on corporate and individual incom es; through payments
of up to $80 to low -incom e individuals, including som e w ho would
pay no Federal incom e taxes; and through certain other measures.
Staff projections for the first half of 1975 in essen ce were similar
to those of 5 w eeks earlier, although the declines now expected
in real G N P were larger for the current quarter and smaller for
the second quarter. The President’s fiscal program, if enacted, was
expected to im prove the prospects for an upturn in econom ic
activity in the second half of the year but to have little impact
before then, apart from adding to disposable personal incom e
toward the end of the second quarter. A ccordingly, it was still
anticipated that the rise in personal consum ption expenditures
w ould be little, if any, greater than the increase in prices; that
the expansion in business fixed investment outlays w ould fall short
of the increase in prices; that residential construction activity w ould
decline further in the current quarter and then turn up; and that
the rate of business inventory investment w ould fall substantially
in the first quarter and then shift to liquidation in the next.
The exchange rate for the dollar against leading foreign curren
cies— w hich had been declining since early Septem ber— fell som e
what further betw een m id-D ecem ber and mid-January, in associa
tion with decreases in interest rates in this country relative to those
in other major countries. The U .S . foreign trade deficit— after
narrowing in September and October— remained moderate in N o
vem ber, as both exports and imports rose substantially. O il-export
ing countries continued to add to their investm ents in the United
231
232
Federal Reserve Bulletin □ April 1975
States, and large inflows and outflows of bank-reported private
capital were roughly offsetting.
At U .S . com m ercial banks total loans and investm ents declined
sharply from the end of Novem ber to the end of D ecem ber,
reflecting in large part decreases in outstanding loans to businesses
and to nonbank financial institutions; banks reduced their over-all
holdings of securities slightly. In contrast with im m ediately pre
ceding m onths, businesses reduced their borrowings in the co m
mercial paper market as w ell as at banks, in part as a result of
efforts to fund short-term debts. In early January m ost banks
reduced the prime rate applicable to large corporations in tw o steps
from IOV2 per cent to 10 per cent, but reductions in the rate
continued to lag behind declines in com m ercial paper rates.
Growth in the narrowly defined m oney stock (M x) 2 slow ed to
an annual rate of about 2 per cent in D ecem ber. Growth in the
more broadly defined m oney stock (M 2) 3 also slow ed as net inflows
to banks of tim e and savings deposits other than m oney market
certificates of deposit (C D ’s) declined sharply; how ever, net inflows
of deposits to nonbank thrift institutions continued to im prove. Over
the fourth quarter as a w h ole, M x and M 2 grew at rates of 4 and
nearly 7 per cent, resp ectively.4 W eekly data indicated that
had declined som ewhat in early January but that inflows to banks
of consum er-type time and savings deposits had picked up.
On January 20 the Board of Governors announced a reduction
in reserve requirements on the net demand deposits of member
com m ercial banks. The action— w hich w ould release about $1.1
billion in reserves to the banking system in the w eek beginning
February 13— was designed to permit further gradual improvem ent
in bank liquidity and to facilitate moderate growth in the monetary
aggregates.
System open market operations since the D ecem ber 1 6 -1 7 m eet
ing had been guided by the C om m ittee’s decision to seek bank
reserve and m oney market conditions consistent with som ewhat
more rapid growth in monetary aggregates over the months ahead
2Private demand deposits plus currency in circulation.
3Mi plus commercial bank time and savings deposits other than money market
CDs.
4The growth rates cited for the quarter are calculated on the basis of the dailyaverage level in the last month of the quarter relative to that in the last month
of the preceding quarter.
R ecord of Policy A ctions of FOM C
than had occurred in recent m onths, w hile taking account of
developm ents in dom estic and international financial markets. Data
that had becom e available in the w eeks im m ediately after the
D ecem ber m eeting suggested that in the D ecem ber-January period
the aggregates w ould grow at rates near or below the lower lim its
of the ranges of tolerance that had been specified by the Com m ittee.
C onsequently, System operations persistently had been directed
toward further easing in bank reserve and m oney market conditions.
In the statement w eek ending January 8 , the Federal funds rate
had averaged slightly below 1 3A per cent— dow n from about 8 %
per cent at the tim e of the D ecem ber m eeting.
The data that becam e available on January 9 indicated still greater
w eakness in the aggregates; it appeared that
and M 2 w ould
grow in the D ecem ber-January period at rates w ell b elow the lower
lim its of the specified ranges of tolerance. The System currently
w as conducting reserve-supplying operations thought to be consist
ent with a w eekly average funds rate at about the IV 2 per cent
low er lim it of its specified range of tolerance. Against the back
ground of those developm ents and to give the M anager greater
flexibility, Chairman Burns recom m ended on January 9 that the
low er lim it of the funds rate constraint be reduced to 7 Vs per cent
for the period remaining until the next Com m ittee m eeting. The
m em bers of the C om m ittee concurred, and over m ost of that period
the funds rate w as slightly above 7 per cent.
Short-term market interest rates declined substantially further
over the inter-m eeting period, in response to the weakening in
business dem ands for short-term credit, to System open market
operations to ease bank reserve and m oney market conditions, and
to a reduction in Federal R eserve discount rates. D iscount rate
reductions of V2 of a percentage point, to 1 XA per cent, at six Reserve
Banks were announced on January 3, to be effective on January
6 ; shortly thereafter, rates were reduced at the remaining six Banks.
Over the inter-m eeting period the market rate on 3 -month Treasury
bills declined nearly three-fourths of a percentage point, to about
6 .4 0 per cent, and rates on private short-term instruments declined
considerably more.
Y ields on longer-term bonds in general changed little in the
inter-m eeting period— despite the declines in short-term rates— b e
cause corporate financing in the capital market had been and was
233
234
Federal Reserve Bulletin □ April 1975
expected to remain substantial and prospective Treasury financings
were large. The volum e of public offerings of corporate bonds in
D ecem ber w as exceptionally heavy for that season, and a near-rec
ord volum e w as in prospect for January. In the hom e m ortgage
market contract interest rates on new com m itm ents for conventional
m ortgages in the primary market and yields on com m itm ents in
the secondary market for Federally underwritten m ortgages declined
further from early D ecem ber to mid-January.
The Treasury w as expected to announce shortly the terms of
its mid-February refunding. Of the maturing issu es, $ 3 .5 5 billion
were held by the public.
The Com m ittee decided that the econom ic situation and outlook
called for more rapid growth in monetary aggregates over the
months ahead than had occurred in recent months. A staff analysis
suggested that— although M x was not expanding in January— the
demand for m oney w ould pick up in February, in part as a result
of the lagged effects of earlier declines in interest rates. N ever
theless, it appeared likely that if
were to grow at a rate consistent
with the C om m ittee’s longer-run objectives for the monetary ag
gregates, m oney market conditions w ould have to ease further in
the period im m ediately ahead. It was expected that net inflows
of consum er-type tim e and savings deposits to banks and to non
bank thrift institutions w ould be relatively strong. Dem ands for
bank credit appeared likely to be moderate.
The Com m ittee concluded that growth in
and M 2 over the
January-February period at annual rates within ranges of tolerance
of 3 V2 to 6 V2 per cent and 7 to 10 per cent, respectively, w ould
be consistent with its longer-run objectives for the monetary aggre
gates. The mem bers agreed that such growth rates w ould be likely
to involve growth in reserves available to support private nonbank
deposits (R P D ’s) within a range of tolerance of 6 lA to 9 xk per
cent. T hey also agreed that in the period until the next m eeting
the w eek ly average Federal funds rate m ight be expected to vary
in an orderly fashion within a range of 6 V2 to
per cent, if
necessary in the course of operations.
The m embers also agreed that, in the conduct of operations,
account should be taken of the forthcom ing Treasury financing and
of developm ents in dom estic and international financial markets.
It w as understood that the Chairman might call upon the Com m ittee
R ecord of Policy Actions of FOM C
to consider the need for supplementary instructions before the next
scheduled m eeting if significant inconsistencies appeared to be
developing am ong the C om m ittee’s various objectives and con
straints.
The follo w in g dom estic policy directive was issued to the Federal
R eserve Bank of N ew York:
The information reviewed at this meeting suggests that real output
of goods and services fell sharply in the fourth quarter of 1974 and
that further declines are in prospect for the months immediately
ahead. In December declines in industrial production and employ
ment again were sharp and widespread, and the unemployment rate
increased from 6.5 to 7.1 per cent. Average wholesale prices of
industrial commodities were unchanged, after having risen much less
rapidly from August to November than earlier in the year, and prices
of farm and food products declined. In recent months increases in
average wage rates have been large, but not so large as in the spring
and summer.
In his State of the Union message, the President set forth a program
of fiscal stimulus, including tax rebates for individuals and a tempo
rary increase in the investment tax credit for business. The President
also proposed a new program to reduce the consumption of energy;
the program includes new taxes in the energy area along with
measures of tax relief that, on balance, are designed to have a neutral
effect on the size of the Federal deficit.
The dollar in December and early January continued the gradual
decline against leading foreign currencies that began in September.
In November, as in October, the U.S. foreign trade deficit was
moderate; sizable inflows of official funds from oil-exporting coun
tries continued, while other capital inflows and outflows reported
by banks were roughly offsetting.
The narrowly defined money stock grew at an annual rate of 4
per cent over the fourth quarter of 1974, while the more broadly
defined measure of the stock grew at a rate of nearly 7 per cent.
In December and early January, however, the narrowly defined
money stock changed little. Net inflows of consumer-type time and
savings deposits at banks slowed sharply in December, although they
continued to improve at nonbank thrift institutions; in early January
deposit inflows at banks picked up. Business demands for short-term
credit, both at banks and in the commercial paper market, moderated
further in December, while demands in the long-term market re
mained strong. Over recent weeks short-term market interest rates
235
236
Federal Reserve Bulletin □ April 1975
have declined substantially, but yields on long-term securities have
changed little, on balance. Federal Reserve discount rates were
reduced from 1 3A to IV* per cent in early January, and on January
20 the Board announced a reduction in reserve requirements on
demand deposits estimated to release $1.1 billion in required re
serves .
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee, while resisting inflationary pres
sures and working toward equilibrium in the country’s balance of
payments, to foster financial conditions conducive to cushioning
recessionary tendencies and stimulating economic recovery.
To implement this policy, while taking account of the forthcoming
Treasury financing, developments in domestic and international fi
nancial markets, and the Board’s action on reserve requirements,
the Committee seeks to achieve bank reserve and money market
conditions consistent with more rapid growth in monetary aggregates
over the months ahead than has occurred in recent months.
Votes for this action: Messrs. Burns, Black, Bucher,
Clay, Coldwell, Holland, Kimbrel, Mitchell, Sheehan,
Wallich, Winn, and Debs. Votes against this action:
None.
Absent and not voting: Mr. Hayes. (Mr. Debs voted
as alternate for Mr. Hayes.)
Subsequent to the m eeting, on February 5, the available data
suggested that in January
had declined sharply and that growth
in M 2 had been only m odest. Growth rates for the January-February
period appeared to be w ell below the low er lim its of the ranges
of tolerance specified by the Com m ittee. The w eakness in the
monetary aggregates w h olly reflected the behavior of demand
deposits; growth in consum er-type tim e deposits remained rela
tively strong. The System A ccount Manager currently was endeav
oring to supply reserves at a rate thought to be consistent with
a Federal funds rate of 6 xh per cent, the lower lim it of the range
of tolerance that had been specified by the C om m ittee. On February
5 a majority of the m embers concurred in the Chairman’s recom
m endation that, in light of those developm ents and of the reduction
in discount rates effective that day, the low er lim it of the funds
rate constraint be reduced to 6 1A per cent. Mr. Sheehan did not
concur because he preferred to reduce the low er lim it of the funds
rate constraint to 6 per cent, rather than 6 xk per cent.
R ecord of Policy A ctions of FO M C
2 . A m e n d m e n t to a u th o rization for d o m e stic o p e n m arket
o p era tio n s
On January 30 the C om m ittee m embers voted to amend a provi
sion of paragraph 2 of the authorization for dom estic open market
operations, w hich specified that a R eserve Bank other than the
N ew York Bank could purchase special certificates of indebtedness
directly from the Treasury only if the latter Bank w as closed , by
striking the word “ if ” in the clause “ or, if the N ew York Bank
is c lo s e d ,” and inserting in its place the words “ under special
circum stances, such as w hen. . . . ’’ W ith this am endm ent, para
graph 2 read as follow s:
The Federal Open Market Committee authorizes and directs the
Federal Reserve Bank of New York, or, under special circum
stances, such as when the New York Reserve Bank is closed, any
other Federal Reserve Bank, to purchase directly from the Treasury
for its own account (with discretion, in cases where it seems desira
ble, to issue participations to one or more Federal Reserve Banks)
such amounts of special short-term certificates of indebtedness as
may be necessary from time to time for the temporary accommo
dation of the Treasury; provided that the rate charged on such cer
tificates shall be a rate XA of 1 per cent below the discount rate
of the Federal Reserve Bank of New York at the time of such pur
chases, and provided further that the total amount of such certifi
cates held at any one time by the Federal Reserve Banks shall not
exceed $1 billion.
Votes for this action: Messrs. Burns, Black, Bucher,
Clay, Coldwell, Holland, Mitchell, Sheehan, Winn,
Baughman, and Debs. Votes against this action: None.
Absent and not voting: Messrs. Hayes, Kimbrel, and
Wallich. (Mr. Debs voted as alternate for Mr. Hayes
and Mr. Baughman voted as alternate for Mr. Kimbrel.)
This action w as taken on the recom m endation of the A ccount
M anager, w ho had advised Com m ittee m embers that, under cer
tain circum stances involving holidays not uniform ly celebrated
throughout the country, it w ould be convenient for the Treasury
if the authority for Reserve Banks other than N ew York to pur
chase special Treasury certificates of indebtedness was not con
fined exclu siv ely to tim es w hen the N ew York R eserve Bank was
closed .
237
238
Federal Reserve Bulletin □ April 1975
M E E T IN G H E L D O N F E B R U A R Y 1 9 , 1 9 7 5
1.
D o m e s tic p o lic y d ir e c tiv e
The information review ed at this m eeting suggested that real output
o f goods and services, w hich had declined throughout 1974, was
falling sharply further in the first quarter of 1975; that the rise
in prices w as m oderating significantly ; and that nominal G N P was
declining. Staff projections suggested that real econom ic activity
w ould recede further in the second quarter and that price increases
w ould continue to m oderate.
In January retail sales had risen som ew hat, according to the
advance estim ate, but they had remained w ell below the levels
of last summer and early autumn. For the third consecutive month
cutbacks in production and em ploym ent were substantial and w id e
spread, in part because of continuing efforts to liquidate inventories.
The unem ploym ent rate rose a full percentage point, to 8 .2 per
cent, and the number of persons working only part time increased
further.
The advance in the index of average hourly earnings for private
nonfarm production workers was substantial in January, but as in
the final months of 1974, it was considerably less rapid than in
the spring and summer of last year. Average w holesale prices of
industrial com m odities— w hich were unchanged in D ecem ber—
rose m oderately in January, in part because of increases in m achin
ery and in fuels and power; w holesale prices of farm and food
products declined further. In Decem ber the consum er price index
had continued to rise, although the increase had not been so large
as in m ost earlier months in 1974.
The latest staff projections for the first half of 1975 suggested
that nom inal G N P w ould change little and that real G NP would
contract substantially more than had been expected at the time of
the last m eeting, to a considerable extent because the curtailment
in business fixed investm ent and the liquidation of business inven
tories were now expected to be sharper than had been anticipated
R ecord of Policy Actions of FO M C
earlier. It w as now expected that the rise in disposable personal
incom e w ould fall short of the increase in consum er prices until
late in the second quarter— w hen tax rebates were scheduled under
the adm inistration’s budget proposals— and that real personal con
sum ption expenditures w ould decline. H ow ever, the more rapid
liquidation of inventories expected in the first half of the year—
along with the tax rebates and other stim ulative fiscal measures
in prospect— tended to strengthen the prospects for an upturn in
econom ic activity in the second half.
The exchange rate for the dollar against leading foreign curren
cies remained under downward pressure throughout January. In
early February the Federal Reserve System and som e European
central banks began concerted intervention purchases of dollars in
the exchange markets, w hich— in conjunction with sharp decreases
in European interest rates— arrested the decline in the value of the
dollar. In the days just before this m eeting, how ever, downward
pressure w as renewed and the value of the dollar declined som e
what. In D ecem ber the U .S . foreign trade deficit had w idened,
reflecting a substantial increase in imports of fuels and decreases
in exports of m any nonagricultural products.
At U .S . com m ercial banks total loans and investm ents rose
m oderately from the end of Decem ber to the end of January, after
having declined sharply in the preceding m onth. Over the 2-m onth
period, outstanding bank loans to business declined; business
dem ands for short-term credit w eakened both at banks and in the
com m ercial paper market, reflecting the recession in econom ic
activity and business funding of short-term debts through heavy
capital market financing. Consumer loans at banks also declined,
w hile real estate loans increased m oderately. In late January and
early February m ost banks gradually reduced the prime rate appli
cable to large corporations from 10 per cent to 8 3A per cent, but
reductions in the rate continued to lag behind declines in short-term
market interest rates.
The narrowly defined m oney stock (M x)— w hich had grown at
an annual rate of about 4 .5 per cent in the fourth quarter of
1974— declined at a rate of about 9 .5 per cent in January, reflecting
a sharp decrease in demand deposits; the amount of currency in
circulation continued to expand. N et inflows of consum er-type time
and savings deposits at banks and at nonbank thrift institutions
239
240
Federal Reserve Bulletin □ April 1975
were strong, and broader m easures of the m oney stock (M 2 and
M 3) continued to grow , although at rates w ell b elow those in the
fourth quarter of last year.
On January 22 the Treasury announced that it w ould auction
up to $ 5 .5 billion of notes and bonds, of w hich $ 3 .5 5 billion
represented refunding of publicly held notes that were to mature
in mid-February. In auctions on January 2 8 , 2 9 , and 30, respec
tively, the Treasury sold $3 billion of 3 ^ -year notes at an average
price to yield 7.21 per cent, $ 1 .7 5 billion of 6-year notes at an
average price to yield 7 .4 9 per cent, and $750 m illion of 25-year
bonds at an average price to yield 7 .9 5 per cent.
System open market operations since the January 2 0 -2 1 m eeting
had been guided by the C om m ittee’s decision to seek bank reserve
and m oney market conditions consistent with more rapid growth
in monetary aggregates over the months ahead than had occurred
in recent m onths, w hile taking account of the forthcom ing Treasury
financing, developm ents in dom estic and international financial
markets, and the Board’s action of January 20 reducing reserve
requirements on demand deposits. Data that had becom e available
in the w eeks im m ediately after the January m eeting suggested that
in the January-February period the aggregates w ould grow at rates
below the low er lim its of the ranges of tolerance that had been
specified by the C om m ittee. C onsequently, System operations per
sistently had been directed toward further easing in bank reserve
and m oney market conditions. The Federal funds rate, w hich had
averaged 7 Vs per cent in the statement w eek ending January 2 2 ,
had declined by the statement w eek ending February 5 to an average
6 V2 per cent, the low er lim it of its specified range of tolerance.
The data that becam e available in early February indicated still
greater w eakness in the aggregates; it appeared that growth rates
for
and M 2 in the January-February period w ould fall w ell
below the low er lim its of the ranges of tolerance specified by the
C om m ittee. On February 5 a majority of the members concurred
in the Chairman’s recom m endation that the low er lim it of the funds
rate constraint be reduced to 6 lA per cent, and over the period
remaining until this m eeting the funds rate w as close to that level.
Short-term market interest rates declined substantially further
over the inter-m eeting period, in response to the w eakness in
business dem ands for short-term credit and to System open market
R ecord of Policy A ctions of FO M C
operations to ease bank reserve and m oney market conditions. On
the day before this m eeting the market rate on 3-m onth Treasury
b ills w as 5 .3 2 per cent, dow n about 1 percentage point from the
rate at the tim e of the last m eeting. Federal R eserve discount rates
were reduced at nine R eserve Banks from l lA to 6 3A per cent,
effective February 5; shortly thereafter, rates were reduced at the
rem aining three Banks.
The continued easing in short-term interest rates contributed to
significant declines in longer-term rates, notwithstanding a large
volum e of offerings of new issues. Public offerings of corporate
bonds rose sharply in January to a near-record volum e, and only
a moderate decline w as in prospect for February. In the hom e
m ortgage market, contract interest rates on new com m itm ents for
conventional m ortgages in the primary market and yields on com
mitm ents in the secondary market for Federally underwritten mort
gages declined substantially further during January.
The C om m ittee decided that the econom ic situation and outlook
called for more rapid growth in monetary aggregates over the
m onths ahead than had occurred in recent m onths. A staff analysis
suggested that the demand for m oney w ould rebound and that
growth in M x w ould be substantial in the w eeks im m ediately ahead,
in accordance with an expected shift toward a more normal rela
tionship betw een the transactions dem ands for m oney and nominal
G N P. H ow ever, in part because of the weaker behavior of nominal
G N P now projected, it appeared likely that if M x were to grow
at a rate consistent with the C om m ittee’s longer-run objectives for
the m onetary aggregates, m oney market conditions w ould have to
ease further in the period im m ediately ahead. Sustained strength
in net inflows o f consum er-type tim e and savings deposits to banks
and to nonbank thrift institutions was anticipated, in response to
the continuing decline in short-term interest rates. Private demands
for short-term credit w ere expected to remain w eak, but the Treas
ury w as likely to borrow additional new cash over the months
ahead.
The C om m ittee concluded that growth in M x and M 2 over the
February-M arch period at annual rates within ranges of tolerance
of 5 xh to IV 2 per cent and 6 V2 to 8 V2 per cent, respectively, w ould
be consistent w ith its longer-run objectives for the monetary aggre
gates. The growth rate of reserves available to support private
241
242
Federal Reserve Bulletin □ April 1975
nonbank deposits (R P D ’s) in the same period was expected to be
lo w — in a range of lA to 2 lA per cent— m ainly because of the
2 -w eek lag in reserve accounting. The mem bers agreed that in the
period until the next m eeting the w eekly average Federal funds
rate m ight be expected to vary in an orderly fashion in a range
of 5 lA to 6 lA per cent, if necessary in the course of seeking monetary
growth rates within the ranges specified. The mem bers also agreed
that in the conduct of operations, account should be taken of
developm ents in dom estic and international financial markets.
The follow in g dom estic policy directive was issued to the Federal
R eserve Bank of N ew York:
The information reviewed at this meeting suggests that real output
of goods and services is continuing to fall sharply in the current
quarter. In January declines in industrial production and employment
were large and widespread for the third consecutive month. The
unemployment rate rose a full percentage point to 8.2 per cent.
Average wholesale prices of industrial commodities, which were
unchanged in December, rose moderately in January, and prices
of farm and food products declined further. In recent months
increases in average wage rates have moderated, although they have
still been large.
The decline in the foreign exchange value of the dollar was
arrested in early February by concerted central bank intervention
and a sharp decline in European interest rates, but in recent days
the dollar has declined somewhat. In December the U.S. foreign
trade deficit increased, but it was smaller in the fourth quarter as
a whole than in the third.
The narrowly defined money stock, after having grown at an
annual rate of about AV2 per cent over the fourth quarter of 1974,
declined sharply in January. However, net inflows of consumer-type
time and savings deposits at banks and nonbank thrift institutions
were large, and broader measures of the money stock continued
to expand. Business demands for short-term credit have weakened
in recent months, both at banks and in the commercial paper market
while demands in the long-term market have been exceptionally
strong. Since mid-January short-term market interest rates have
fallen substantially further, and yields on long-term securities also
have declined. Federal Reserve discount rates were reduced from
1X
A to 6 3A per cent in early February.
In light of the foregoing developments, it is the policy of the
Federal Open Market Committee to foster financial conditions con
R ecord of Policy A ctions of FO M C
ducive to cushioning recessionary tendencies and stimulating eco
nomic recovery, while resisting inflationary pressures and working
toward equilibrium in the country’s balance of payments.
To implement this policy, while taking account of developments
in domestic and international financial markets, the Committee seeks
to achieve bank reserve and money market conditions consistent
with more rapid growth in monetary aggregates over the months
ahead than has occurred in recent months.
Votes for this action: Messrs. Burns, Hayes,
Black, Bucher, Clay, Coldwell, Holland, Kimbrel,
Mitchell, Wallich, and Winn. Votes against this
action: None.
Absent and not voting: Mr. Sheehan.
2 . A m e n d m e n t to fo r e ig n cu rren cy d ir e c tiv e
At this m eeting the Com m ittee amended paragraph 2(c) of the
foreign currency directive to delete the word “ S p ecial” from the
phrase “ Special M anager” wherever the phrase appears in that
paragraph. In other actions at the m eeting the Com m ittee had
approved a realignm ent o f personnel w ho supervise System open
market operations at the Federal Reserve Bank of N ew York under
the C om m ittee’s d irection.1 The realignment— w hich follow ed ac
ceptance of the resignation of the incumbent Special M anager in
connection with his planned retirement from the N ew York
Bank— involved , am ong other things, the elim ination of the p o si
tion of Special Manager for Foreign Currency Operations and the
assignm ent of responsibility for the conduct of open market opera
tions in foreign currencies, as w ell as in dom estic securities, to
the M anager o f the System Open Market A ccount. The amendment
to the foreign currency directive was made to conform to these
changes.
Votes for this action: Messrs. Burns, Hayes,
Black, Bucher, Clay, Coldwell, Holland, Kimbrel,
Mitchell, Sheehan, Wallich, and Winn. Votes
against this action: None.
Revisions in the Committee’s Rules of Organization and Rules of Procedure
made for this purpose were published in the Federal Register for Mar. 7, 1975.
243
244
Federal Reserve Bulletin □ April 1975
3 . A m e n d m e n t to a u th o rization for d o m e stic o p e n m arket
o p era tio n s
On March 10 the C om m ittee m embers voted to amend a provision
of paragraph 2 of the authorization for dom estic open market
operations to raise from $1 billion to $2 billion the lim it on System
holdings of special short-term certificates of indebtedness purchased
directly from the Treasury. W ith this amendment, paragraph 2 reads
as follow s:
The Federal Open Market Committee authorizes and directs the
Federal Reserve Bank of New York, or, under special circum
stances, such as when the New York Reserve Bank is closed, any
other Federal Reserve Bank, to purchase directly from the Treasury
for its own account (with discretion, in cases where it seems
desirable, to issue participations to one or more Federal Reserve
Banks) such amounts of special short-term certificates of indebt
edness as may be necessary from time to time for the temporary
accommodation of the Treasury; provided that the rate charged on
such certificates shall be a rate of lA of 1 per cent below the discount
rate of the Federal Reserve Bank of New York at the time of such
purchases, and provided further that the total amount of such
certificates held at any one time by the Federal Reserve Banks shall
not exceed $2 billion.
Votes for this action: Messrs. Burns, Hayes,
Baughman, Coldwell, Eastburn, Holland, Mayo,
Mitchell, and Sheehan. Votes against this action:
None.
Absent and not voting: Messrs. Bucher, MacLaury, and Wallich.
This action w as taken on the recom m endation of the A ccount
M anager, w ho had advised that current projections of Treasury
balances had indicated that temporary cash low points in mid-M arch
and again in mid-April m ight require special borrowing as high
as $ 500 m illion to $ 700 m illion. In view of the day-to-day volatility
in the Treasury’s account, and in estim ates of changes in that
account, the Manager had recom m ended the increase of the lim it,
with the understanding that he w ould recom m end restoration of
the $1 billion lim it as soon as it appeared reasonable to do so.
Records of policy actions taken by the Federal Open Market Committee at each
meeting, in the form in which they will appear in the Board’s Annual Report,
are released about 45 days after the meeting and are subsequently published in
the B u l l e t i n .
245
Law Department
S ta tu te s , r e g u la tio n s , in te rp re ta tio n s , a n d d e c is io n s
R U L E S R E G A R D IN G D E L E G A T IO N
O F A U T H O R IT Y
The Board of Governors has amended its Rules
Regarding Delegation of Authority to reflect the
delegation of authority to review and make deter
minations with respect to an appeal of denial of
access to records of the Board requested pursuant
to the Freedom of Information Act and provided
for in section 261.4(e) of the Board’s Rules Re
garding Availability of Information.
A M E N D M E N T TO R U LES
R E G A R D IN G D E L E G A T IO N O F
A U T H O R IT Y
Effective March 19, 1975, section 265.1a(b) is
added to read as follows:
S ection 2 6 5 .1 a — S pecific F u n c t io n s D el
B oard M embers
egated to
(b) Any Board member designated by the
Chairman is authorized:
(1) Under section (a)(6) of the Freedom of
Information Act (5 U .S.C . § 552) and Part 261
of this Chapter (Rules Regarding Availability of
Information) to review and make a determination
with respect to an appeal of denial of access to
records of the Board made in accordance with the
procedures prescribed by the Board.
IN T E R PR E T A T IO N O F R E G U L A T IO N Y
B A N K H O LD IN G CO M PANIES
A ctivities C losely R elated to B ank ing
Data processing: The authority of holding com
panies under § 225.4(a) to engage in data process
ing activities is intended to permit holding compa
nies to process, by means of a computer or other
wise, data for others of the kinds banks have
processed, by one means or another, in conducting
their internal operations and accommodating their
customers. It is not intended to permit holding
companies to engage in automated data processing
activities by developing programs either upon their
own initiative or upon request, unless the data
involved are financially oriented. The Board re
gards as incidental activities necessary to carry on
the permissible activities in this area the following:
(1) making excess computer time available to
anyone so long as the only involvement by the
holding company system is furnishing the facility
and necessary operating personnel; (2) selling a
byproduct of the development of a program for
a permissible data processing activity; and (3)
furnishing any data processing service upon re
quest of a customer if such data processing service
is not otherwise reasonably available in the rele
vant market area; and (4) supplying formatting for
computer output microfilm and supplying com
puter output microfilm only as an output option
for data otherwise being permissibly processed by
the holding company system.
FEDERAL OPEN M ARKET COM M ITTEE
R U L E S R E G A R D IN G
O F IN F O R M A T IO N
A V A IL A B IL IT Y
The Federal Open Market Committee has
amended its Rules Regarding Availability of In
formation to indicate that the domestic policy
directive adopted at each meeting of the Commit
tee will be published in the Federal Register ap
proximately 45 days after the date of its adoption,
rather than approximately 90 days as previously
provided in that subsection.
A M E N D M E N T TO R ULES
R E G A R D IN G A V A IL A B IL IT Y O F
IN F O R M A T IO N
Effective March 24, 1975, section 271.5(a) is
amended to read as follows:
246
Federal Reserve Bulletin □ April 1975
S ection 2 7 1 .5 — D eferm ent of A v a ila bil
ity of C ertain I nform ation
(a) Deferred availability of information. In
some instances, certain types of information of the
Committee are not published in the Federal Regis
ter or made available for public inspection or
copying until after such period of time as the
Committee may determine to be reasonably nec
essary to avoid the effects described in paragraph
(b) of this section or as may otherwise be necessary
to prevent impairment of the effective discharge
of the Committee’s statutory responsibilities. For
example, the Committee’s domestic policy direc
tive adopted at each meeting of the Committee
is published in the Federal Register approximately
45 days after the date of its adoption; and no
information in the records of the Committee relat
ing to the adoption of any such directive is made
available for public inspection or copying before
it is published in the Federal Register or is other
wise released to the public by the Committee.
B A N K H O L D IN G C O M P A N Y A N D B A N K
M E R G E R O R D E R S IS S U E D B Y T H E B O A R D O F G O V E R N O R S
O R D E R S U N D E R S E C T IO N 3 O F B A N K
H O L D IN G C O M P A N Y A C T
E rie B a n k sh a r es , I n c .,
E r ie , K ansas
O rder Denying Formation of Bank
Holding Company
Erie Bankshares, Inc., Erie, Kansas, has applied
for the Board’s approval under § 3(a)(1) of the
Bank H olding Company Act (12 U .S .C .
1842(a)(1)) to become a bank holding company
through acquisition of 97 per cent of the voting
shares of Home State Bank, Erie, Kansas
(“ Bank” ). Applicant has also applied, pursuant
to § 4(c)(8) of the Act (12 U .S.C . 1843(c)(8))
and § 225.4(b)(2) of the Board’s Regulation Y,
for permission to acquire the Virgil A. Lair
Agency, Erie, Kansas (“ Agency” ), an agency that
primarily sells credit life and credit accident and
health insurance. Upon acquisition of Agency,
Applicant proposes to expand Agency’s activities
to include the sale of general insurance; these
activities will be conducted in a community with
a population of less than 5,000 persons. Such
activities have been determined by the Board in
§ 225.4(a)(9)(iii) of Regulation Y as permissible
for bank holding companies, subject to Board
approval of individual proposals in accordance
with the procedures of § 225.4(b).
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with §§ 3
and 4 of the Act (39 Federal Register 39611). The
time for filing comments and views has expired,
and the Board has considered the applications and
all comments received, including those submitted
by the Kansas Association of Mutual Insurance
Agents and by several local Kansas insurance
agents, in light of the factors set forth in § 3(c)
of the Act (12 U.S.C . 1842(c)) and the consid
erations specified in § 4(c)(8) of the Act.
Applicant is a nonoperating corporation organ
ized for the purposes of becoming a bank holding
company through acquisition of Bank and of ac
quiring Agency from the principals of Bank. Bank
(deposits of $7.1 million), the only banking insti
tution in Erie, an agricultural community (popula
tion of 1,414 at the 1970 Census) located in
southeastern Kansas, is the third largest of six
banks in the Neosho County banking market and
holds approximately 11 per cent of the total de
posits in the market. (All banking data are as of
June 30, 1974.) The principals of Bank also own
the controlling interest in the Stark State Bank,
Stark, Kansas (deposits of $2.9 million), the
smallest bank in the relevant banking market with
4.3 per cent of total deposits therein. Inasmuch
as the proposed transaction represents a restruc
turing of the ownership of Bank from individuals
to a corporation owned by the same individuals,
and since Applicant has no present subsidiaries,
it does not appear that consummation of the pro
posal would have adverse effects on competition
in any relevant area. Accordingly, based on the
foregoing and other facts of record, competitive
considerations are consistent with approval of the
application to acquire Bank.
As it has indicated on previous occasions, the
Board believes that a bank holding company
should be a source of financial and managerial
strength for its subsidiary bank(s) and every
proposed formation or acquisition is examined
closely with this consideration in mind. Under the
proposal, Applicant would incur debt of $515,000,
which Applicant proposes to service through divi
L aw D epartm ent
dends from Bank and income from Agency. In
the Board’s view, the debt retirement program of
Applicant, which involves substantial dividends
from Bank, may not provide Applicant with the
necessary financial flexibility to service the acqui
sition debt while maintaining Bank’s capital at a
desirable level. In this latter connection, the Board
notes also that Bank’s overall financial condition,
including certain of its equity capital ratios, has
declined somewhat since control of Bank was
acquired by principals of Applicant in 1972. It
appears that this situation has developed in part
due to a lack of banking experience on the part
of Applicant’s principals. Thus, on the basis of
the foregoing and other facts of record, the Board
is unable to conclude that managerial consid
erations lend any weight toward approval of the
application. Accordingly, the Board concludes that
the above considerations relating to the banking
factors weigh against approval of the application.
The proposed formation represents merely a
restructuring of the ownership of Bank with no
significant changes in Bank’s operations or the
services offered to customers. Consequently, con
siderations relating to the convenience and needs
of the community to be served lend no weight
toward approval of the application.
On the basis of all the circumstances concerning
this application, the Board concludes that the
banking considerations involved in the proposal
present adverse factors bearing on the financial
condition and managerial resources of Applicant
and Bank. Such adverse factors are not outweighed
by any procompetitive effects or by benefits which
would result in serving the convenience and needs
of the community. Accordingly, it is the Board’s
judgment that approval of the application would
not be in the public interest and that the application
for approval to become a bank holding company
should be denied.1
By order of the Board of Governors, effective
March 21, 1975.
Voting for this action: Chairman Burns and Gover
nors Mitchell, Sheehan, Holland, Wallich, and Coldwell. Absent and not voting: Governor Bucher.
(Signed)
[s e a l]
T heodore
E.
A llis o n ,
Secretary of the Board.
Un view of the Board’s action with respect to the application
to becom e a bank holding com pany, consideration of the §
4 (c)(8 ) application to engage in insurance agency activities
b ecom es m oot.
247
O ld K en t F in a n c ia l C o r po ratio n ,
G r a n d R a pid s , M ichigan
O rder Denying A cquisition of Bank
Old Kent Financial Corporation, Grand Rapids,
Michigan, a bank holding company within the
meaning of the Bank Holding Company Act, has
applied for the Board’s approval under § 3(a)(3)
of the Act (12 U .S.C . 1842(a)(3)) to acquire all
of the voting shares of the successor by merger
to National Lumberman’s Bank and Trust Com
pany, Muskegon, Michigan (“ 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.
By Order dated January 25, 1974, the Board
of Governors denied the subject application (39
Federal Register 5374). Thereafter, on August 9,
1974, the Board granted a Request for Recon
sideration filed by Applicant, pursuant to section
262.3(g)(5) of the Board’s Rules of Procedure (12
CFR 262.3(g)(5)), whereby the Board agreed to
reconsider the application.
Notice of the Board’s action agreeing to recon
sider the application to acquire Bank has been
given (39 Federal Register 30080). The time for
filing comments and views with respect to the
application has expired. The Board has recon
sidered the application, together with all comments
received and the supplemental material submitted
by Applicant in connection therewith, in light of
the factors set forth in § 3(c) of the Act.
Applicant, the seventh largest banking organi
zation in Michigan, controls four banks with ag
gregate deposits of approximately $858.3 million,
representing about 3 per cent of the total deposits
in commercial banks in the State.1 Acquisition of
Bank ($111.1 million in deposits) would increase
Applicant’s share of deposits in the State by less
than one per cent and would not significantly
increase the concentration of banking resources on
a statewide basis.
Bank, the second largest of three banks head
quartered in the city of Muskegon, has about 24
per cent of the total commercial bank deposits in
^ ta te banking data are as of June 30, 1974.
248
Federal Reserve Bulletin □ April 1975
the Muskegon-Grand Haven banking market, and
is the second largest of five banks in that market.2
The first and third largest banks in the market
(which are also headquartered in Muskegon) con
trol, respectively, about 32 and 19 per cent of total
deposits in commercial banks in the market. The
fourth and fifth largest banks in the market are
headquartered in Grand Haven and each control
approximately 12 per cent of total deposits in
commercial banks in the market.3
Applicant’s lead bank, Old Kent Bank and Trust
Company (“ Old Kent” ), is located in Grand
Rapids, which is approximately 35 miles east of
Muskegon. Old Kent (deposits of about $768
million) is the largest banking organization in the
Grand Rapids banking market with 49 per cent
of the commercial bank deposits in that market.
Although Bank and Old Kent are located in sepa
rate banking markets, the Board, in its earlier
Order with respect to this application, noted that
Old Kent derived some loans, deposits and trust
accounts from Bank’s service area and that Bank
derived deposits from Old Kent’s service area. The
Board concluded that consummation of the pro
posal would eliminate existing competition be
tween Old Kent and Bank and the probability of
increased competition developing between them in
the future.
In connection with the reconsideration of this
application, Applicant submitted in response to a
Board request additional data that indicated the
amount of business that both banking organi
zations obtained from each other’s respective
market areas, the geographic definition of which
had been previously published by the Board.4 On
the basis of this new data, the Board believes that
the amount of business that Old Kent obtains from
Bank’s market area is meaningful, especially for
such banking services as commercial accounts,
dairy and farm accounts, large certificates of de
posit and trust business. It further appears from
the record that Old Kent is an active competitor
in Bank’s relevant market area for certain banking
services. The influence of Old Kent in the relevant
2The M uskegon-Grand Haven banking market is approxi
mated by the M uskegon-Grand Haven Ranally Metro Area
w hich consists of m ost of M uskegon County and the northwest
corner of Ottawa County.
3Market data are as of June 3 0, 1974.
4Board Order dated January 2 5 , 1974, denying the subject
application (60 Federal Reserve B ulletin 133), and Board
Order of October 2 , 1974, approving the application of N a
tional Detroit Corporation, Detroit, M ichigan, to acquire Grand
V alley National Bank, G randville, M ichigan (39 Federal R eg
ister 3 6510).
market is partially explained by Old Kent’s signif
icant position in the neighboring market and the
television advertising pattern for the region. There
are no television stations located along the lake
shore and television coverage for the region is
transmitted only from Grand Rapids. Old Kent
advertises from the Grand Rapids stations
throughout the Muskegon-Grand Haven area while
banks located in the Muskegon-Grand Haven area
do not appear to advertise extensively through
those stations. The record shows that Old Kent
has met with some success in obtaining certain
business from the relevant market and, in the
Board’s view, Old Kent is in a position to exert
an even greater competitive influence in Bank’s
market in the future. Accordingly, the Board con
cludes that consummation of the proposal would
eliminate existing competition as well as the prob
ability of increased competition developing be
tween Bank and Old Kent in the future.
In its previous action on this application, the
Board also concluded that consummation of the
proposed acquisition would eliminate the likeli
hood that Applicant would enter the market de
novo and thus would have an adverse effect on
potential competition. In the reconsideration re
quest, Applicant argued that the Board was in error
in not taking into consideration an application filed
with the Regional Administrator of National Banks
for the formation of a de novo national bank to
be located in Norton Shores. However, that de
novo application has now been withdrawn and the
Board continues to be of the view that Norton
Shores is a section of the relevant market which
is capable of supporting new entry. In addition,
the Board believes Applicant is one of the most
likely entrants into the Muskegon-Grand Haven
banking market in view of its relative size, its
proximity to the market, and its penchant for
expanding in western Michigan. Furthermore,
Applicant has the resources and expertise to enter
the relevant market de novo. In view of the fore
going, the Board reaffirms its conclusion that con
summation of the proposed acquisition would have
an adverse effect on potential competition in the
Muskegon-Grand Haven banking market.
The Board previously concluded that competi
tive considerations relating to this application
weighed sufficiently against approval that it should
not be approved unless the anticompetitive effects
were outweighed by considerations relating to the
financial and managerial resources and future
prospects of Applicant and Bank or the conven
ience and needs of the communities to be served.
In addition to the foregoing, the Board expressed
L aw D epartm ent
concern, and continues to be of the view, that
approval of the proposed acquisition would per
petuate a trend whereby Applicant would become
dominant in a four-county region in western
Michigan (approximated by Kent, Ottawa, and
Muskegon Counties, plus the lower one-third of
Newaygo County). The Grand Rapids, Holland,
Fremont and Muskegon-Grand Haven banking
markets are all located within this four-county
region. Applicant is the leading organization in
the Grand Rapids market and has made significant
acquisitions in the adjacent Holland and Fremont
markets. As noted above, Applicant is already
capable of exerting a competitive influence on the
Muskegon-Grand Haven market by virtue of its
significant presence in Grand Rapids. Applicant’s
proposal to acquire the second largest bank in the
Muskegon-Grand Haven banking market would
increase Applicant’s share of the total deposits in
the four-county region from 37 per cent to about
42 per cent, more than twice the share (18 per
cent) of the second largest banking organization
in the region.5 In the Board’s opinion, the subject
proposal would inhibit competition by enhancing
Applicant’s significant position in the region,
thereby increasing the size disparity among the
banking organizations in this section of the State
and increasing the concentration of banking re
sources in the region. Also, approval of this pro
posal would remove Bank as an entry vehicle for
a bank holding company not already represented
in the region— an alternative that, if accomplished,
would serve to promote competition in the region.
Further, in view of the fact that Applicant’s re
sources are finite, consummation of the proposed
acquisition would detract from Applicant’s ability
to enter and compete in other markets in the State
outside of the western region of Michigan.
Accordingly, based on the foregoing and the
facts of record, the Board continues to be of the
view that the anticompetitive effects flowing from
Applicant’s proposal are such that approval of the
subject application would not be in the public
interest and that the application should be denied
unless the anticompetitive effects of the proposal
are outweighed by positive considerations in the
record.
The financial and managerial resources and fu
ture prospects of Applicant and its subsidiary
banks are regarded as satisfactory and consistent
with approval of the application. Bank has sound
5R egional data are as of June 3 0 , 1974.
249
financial resources and has recently retained suffi
cient earnings to strengthen its capital position.
In view of the foregoing, Bank appears to be a
viable independent competitor and the importance
of Applicant’s proposed assistance by injecting
equity capital into Bank is mitigated. While Ap
plicant has the resources to assist Bank with man
agement succession, it appears that any problems
encountered by Bank in this area could be reme
died by other less anticompetitive means than the
proposed acquisition by Applicant. Accordingly,
the Board does not regard considerations relating
to the banking factors as providing significant
weight toward approval of the application.
With respect to convenience and needs consid
erations, Applicant has indicated that it would
effect changes in Bank’s services in such areas
as trust services, farm lending, international serv
ices, and services for larger commercial custom
ers. However, no evidence has been presented that
the banking needs of the public in the relevant
market are not presently being met. Thus, in the
Board’s view, such considerations are consistent
with, but do not lend substantial weight toward,
approval of the application.
On the basis of the foregoing, the Board con
tinues to find that anticompetitive effects flowing
from Applicant’s proposal are not outweighed by
considerations relating to banking factors or relat
ing to the convenience and needs of the community
to be served.
Accordingly, on the basis of the record in this
case and for the reasons set forth hereinbefore,
the Board’s Order of January 25, 1974, is hereby
affirmed, and the subject application is denied.
By order of the Board of Governors, effective
March 26, 1975.
Voting for this action: Governors Bucher, Holland,
Wallich, and Coldwell. Absent and not voting: Chair
man Burns and Governors Mitchell and Sheehan.
(Signed)
[s e a l]
T heodore
E.
A llis o n ,
Secretary of the Board.
R epublic of T exas C orpo r a tio n ,
D a l l a s , T exas
O rder A pproving M erg er of Bank H olding
Companies
Republic of Texas Corporation, Dallas, Texas
(“ Applicant” ), 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 Houston National Company, Houston, Texas
250
Federal Reserve Bulletin □ April 1975
( “ Company” ), a bank holding company, and
thereby acquire 100 per cent of the voting shares
(less directors’ qualifying shares) of Houston Na
tional Bank, Houston, Texas (“ Bank” ). Inasmuch
as Company’s principal operating asset is Bank,
the proposed merger of Applicant with Company
is treated herein as the proposed acquisition of
Bank.
Notice of receipt of the application, affording
an opportunity for interested persons to submit
comments and views, has been given in accord
ance 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 banks1 with aggregate
deposits of approximately $2,000 million,2 repre
senting approximately 5 per cent of the total de
posits in commercial banks in Texas, and ranks
thereby as the fourth largest multi-bank holding
company in the State.3 Bank holds total deposits
of $402 million, representing approximately 1 per
cent of total deposits in the State, and is the twelfth
largest banking organization in Texas. Consum
mation of the proposal would increase Applicant’s
share of the deposits in the State to about 6 per
cent and the resulting organization would become
the State’s third largest bank holding company.
As noted above, Applicant presently has two
banking subsidiaries— Republic National Bank of
Dallas ($1,905 million in domestic deposits) and
Oak Cliff National Bank ($96 million in deposits).
Both these subsidiaries are located in the Dallas
banking market, wherein Applicant ranks as the
largest banking organization with 5.1 per cent of
the market’s deposits.
The subject proposal would represent Appli
cant’s initial entry into the Houston market, the
second largest market in terms of deposits in the
State. Applicant is the only multi-bank holding
company in the State with deposits over $1 billion
that is not represented in Houston and it undoubt
edly regards entry into this market as having a
high priority in its future plans.
The Houston market is attractive for de novo
entry, and several banks smaller than Bank are
Hn addition, Applicant indirectly controls interests of more
than 5 per cent but less than 25 per cent in 21 banks.
2This figure does not include foreign deposits which
amounted to $1,183 million as of June 30, 1974.
3 All banking data are as of June 30, 1974, and reflect holding
company formations and acquisitions approved through Jan
uary 31, 1975.
available in the market that might serve as a
foothold acquisition for Applicant. However, in
view of the fact that there are 169 banks in the
Houston market, including representatives from
the State’s largest bank holding companies, and
the generally competitive nature of the market, the
negative effects of the proposal on present and
future competition are minimal. Bank does not
appear to have a significant competitive position
within the market despite its $402 million total
deposits. Although relatively large in absolute
terms, Bank ranks a distant fifth in the market with
less than one-fourth of the deposits of the market’s
largest banking organization and less than one-half
of the deposits of the third largest banking organi
zation in the market. Moreover, Bank is the only
banking organization of the seven largest in the
market that is not now part of a multi-bank holding
company. Affiliation with Applicant would im
prove Bank’s competitive position in the market.
Accordingly, the Board concludes that, on bal
ance, the overall competitive considerations lend
weight to approval of the application.
In acting on Applicant’s proposal in 1973 to
become a bank holding company, the Board noted
at that time that Applicant’s commitments to add
additional capital to Republic National Bank and
to dispose of certain impermissible, nonbanking
interests within the period prescribed in § 4(a)(2)
of the Act were factors weighing in favor of
approval of that application (38 Federal Register
30580).4 Since the formation of the holding com
pany in May 1974, improvement has occurred in
the capital position, internal operations, and credit
condition of Republic National Bank of Dallas;
and Applicant has initiated efforts towards the
disposal of its impermissible activities. In connec
tion with the present proposal, Applicant has indi
cated that the capital of Republic would be aug
mented by $126 million during the period from
December 1974 to December 1977. In addition,
Applicant proposes to increase the capital of Bank
by $6.5 million during 1975. Applicant is em
barking on a program of acquisition which will
presumably afford it entry to the major banking
markets of the State. To accomplish this, the
divestment of the Howard interests should be sub
stantially consummated on schedule and the pro-
4For a description of the nonbanking interests which Appli
cant is required to divest, see the Board’s determination of
September 10, 1973, regarding the “grandfather” privileges
of The Republic National Bank of Dallas with respect to The
Howard Corporation, Dallas, Texas (“Howard”) (1973 Fed
eral Reserve B u l l e t i n 768).
L aw D epartm ent
ceeds used at least in part to provide the additional
capital funds contemplated. On the basis of its
judgment that the above objectives are likely to
be achieved, the Board finds that considerations
relating to the financial and managerial resources
could be considered reasonably satisfactory and
the overall prospects of Applicant and its subsidi
ary banks favorable and consistent with approval.
Considerations relating to the convenience and
needs of the community served by Bank are con
sistent with, and lend weight toward, approval of
the application in light of the fact that Applicant
should be able in a short period of time to provide
a strong competitive alternative in the Houston
market. It is the Board’s judgment that consum
mation of the proposed acquisition would be in
the public interest and that the application should
be approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be 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 Dallas pursuant to
delegated authority.
By order of the Board of Governors, effective
March 18, 1975.
Voting for this action: Chairman Burns and Gover
nors Mitchell, Sheehan, Bucher, and Coldwell. Voting
against this action: Governors Holland and Wallich.
(Signed)
[s e a l ]
T heodore
E.
A l l iso n ,
S ecretary of the Board.
D issenting Statem ent of
G overnors H olland and W allich
We disagree with the action taken by the Board
in approving the application of Republic of Texas
Corporation to merge with Houston National Cor
poration and thereby to acquire Houston National
Bank. While we do not dispute the facts as set
forth in the majority’s statement, our conclusion
with respect to the adverse effects of the proposal
leads us to believe that it should be denied.
As noted in the majority’s statement, the Hous
ton market is attractive for de novo entry and there
are several banks smaller than Houston National
Bank in the market that could serve as a foothold
acquisition for Applicant. Furthermore, it is evi
dent that Applicant is one of the most likely
entrants into the Houston market. In fact, it is the
only large multibank holding company in the State
(about $3 billion in deposits) that is not now
251
represented in the relevant market. Accordingly,
the approval and consummation of the transaction
herein would foreclose the likelihood that Appli
cant would enter the market through a more com
petitive alternative rather than through the acqui
sition of a bank with such substantial resources
as Houston National Bank. A further consideration
involved in this proposal is the fact that its con
summation would also foreclose the possibility
that Houston National Bank would serve as a lead
bank for an additional regional or statewide multi
bank holding company. Thus, in our view, the
competitive considerations involved in the pro
posal are adverse.
In addition, Governor Holland agrees with the
majority that some recent improvement has oc
curred in the capital position of Republic National
Bank of Dallas. However, contrary to the view
expressed by the majority, he believes that Appli
cant should not be permitted at this time to expand
its banking interests by so great a measure as the
acquisition herein at a time when its managerial
and financial resources might more appropriately
be directed toward strengthening the financial
condition of Republic National Bank and its other
subsidiaries. The present proposal, which involves
the acquisition of a very sizable banking organi
zation which is also in need of additional capital,
would result, in his opinion, in the diversion of
Applicant’s resources from its present subsidiaries
and could thereby detract from Applicant’s overall
ability to serve as a source of financial strength
for Republic National Bank and to deal with the
managerial and financial questions posed by its
other affiliates, including the divestiture of Appli
cant’s impermissible nonbanking interests already
mandated by earlier Board action.
O R D E R S U N D E R S E C T IO N 4 O F B A N K
H O L D IN G C O M P A N Y A C T
F irst T en n essee N atio nal C o r po ratio n ,
M em ph is , T en n essee
O rder A pproving D e N ovo Expansion of Insur
ance A gency A ctivities
First Tennessee National Corporation, Mem
phis, Tennessee, 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) of the Board’s
Regulation Y, to engage de novo in certain addi
tional insurance activities through its subsidiary,
Crown Finance Company (“ Crown” ), St. Louis
County, Missouri. Applicant is seeking approval
252
Federal Reserve Bulletin □ April 1975
for Crown to expand its insurance agency activities
to include acting as agent for the sale of: (1)
joint-spouse credit life insurance on a reducing
term basis and (2) physical damage insurance on
personal property pledged as collateral for an ex
tension of credit.1 Such activities have been deter
mined by the Board to be closely related to bank
ing (12 CFR 225.4(a)(9)). The Board has reviewed
the instant proposal in order that it might be
assured that the specific coverages applied for
under § 225.4(a)(9) were of the kind deemed
permissible under its insurance regulation.
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 28189). 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 § 4(c)(8) of the Act (12 U.S.C. 1843(c)(8)).
Applicant, the largest banking organization in
Tennessee, controls 12 subsidiary banks with ag
gregate deposits of $1.2 billion, representing ap
proximately 10.6 per cent of total deposits in
commercial banks in that State.2 Applicant also
controls numerous nonbank subsidiaries that en
gage in a variety of activities, including mortgage
banking, investment and management services,
personal property leasing, trust services, and rein
suring credit life and credit accident and health
insurance.
On June 21, 1973, the Board approved Appli
cant’s acquisition of Crown (38 F.R. 17542).
Crown and 85 of its subsidiaries engage in the
activities of making personal loans and purchasing
instalment sales finance contracts. Crown con
ducts its finance company activities in seven
States: Illinois, Indiana, Iowa, Kansas, Missouri,
Ohio, and Oklahoma. In addition, through its
insurance brokerage and agency subsidiaries,
Crown currently engages in the sale of credit life
and credit accident and health insurance in con
nection with extensions of credit by its finance
company subsidiaries in each of the above-men-
*The activities w hich Applicant proposes to conduct through
C row n’s Oklahoma offices differ slightly from the above-d e
scribed activities. Applicant does not propose that Crown sell
physical dam age insurance on personal property in Oklahom a.
A lso , with respect to joint-spouse credit life insurance, A ppli
cant proposes that the em ployees of C row n’s offices in O kla
hom a enroll custom er-debtors for credit insurance coverage
under group policies issued to Crown as policyholder.
2All banking data are as of June 3 0 , 1974, and reflect holding
com pany form ations and acquisitions approved through Jan
uary 3 1 , 1975.
tioned States.3 Through another subsidiary, Crown
indirectly engages in the underwriting, as rein
surer, of credit life and credit accident and health
insurance directly related to extensions of credit
by its subsidiaries.
In this application, Applicant seeks approval to
engage de novo in the sale of two additional types
of insurance not contemplated by Applicant in the
original application to acquire Crown, and conse
quently not encompassed in the Board’s Order of
June 21, 1973. Applicant proposes to act as agent
with respect to the sale of joint-spouse credit life
insurance on a reducing term basis in connection
with extensions of credit by Crown’s finance of
fices in the States of Indiana, Iowa, Kansas,4
Missouri, and Oklahoma;5 and to act as agent with
respect to the sale of physical damage insurance
on personal property pledged as collateral for
extensions of credit by Crown’s finance offices in
the States of Indiana, Iowa, Kansas, and Missouri.
3The B oard’s Order of June 2 1 , 1973, noted that C row n’s
insurance activities in Illinois w ould not involve the licensing
of C row n’s subsidiaries as insurance agents in view of a
possible prohibition under State law . Although not specifically
noted in the Order, a virtually identical situation existed with
respect to C row n’s Oklahom a offices. T herefore, Applicant
proposed, with respect to C row n’s offices in these tw o States,
that C row n’s em p loyees w ould enroll custom er-debtors for
credit insurance under group credit life and group credit acci
dent and health policies issued to Crown as policyholder. It
was understood that Crown w ould not receive com m issions,
but might receive premium adjustments.
Notw ithstanding the fact that Crown acts as neither agent
nor broker in offering credit life or credit accident and health
insurance on a group basis to its borrowers in Oklahom a and
Illinois, the Board view s this activity as the functional equiva
lent of acting as agent or broker in the sale of credit life
insurance. Therefore, the Board deem s this activity to be a
perm issible activity for purposes of § 2 2 5 .4(a)(9)(ii)(a) of
Regulation Y . In either situation the offering of such insurance
is directly related to an extension of credit, it insures the same
type of interest, and it results in the same public benefit to
the consumer.
4In view of a new Kansas statute (K .S .A . 9-5 0 7 ) prohibiting
the performance of nonbanking activities by multibank holding
com panies, Applicant has com m itted that it w ill cease all of
its nonbanking activities in that State by the date on w hich
that statute becom es effective.
5Applicant proposes that em p loyees of C row n’s offices in
O klahom a w ill enroll debtors of Crown or its subsidiaries for
credit insurance under a group policy issued to Crown as the
policyholder. Crown w ould not receive com m issions, but
m ight receive premium adjustments com puted on the basis of
loss experience. The Oklahom a Insurance C om m issioner has
stated, in a written opinion, that credit life and credit accident
and health policies can be sold under the group form and that
a creditor under a group policy is not required to be licensed
as an insurance agent to enroll m em bers. A pplicant confirms
that C row n’s present insurance activities in O klahom a conform
with O klahom a law s and with this R uling of the Insurance
C om m issioner, and com m its that C row n’s future insurance
activities in O klahom a w ill continue to be in conform ance with
O klahom a law.
L aw D epartm ent
The Board has previously found joint-spouse
credit life insurance, like other forms of credit life
insurance, to be directly related to an extension
of credit,6 and has permitted the sale of such
insurance in cases in which the credit extension
was dependent upon the income of both the hus
band and wife. Such insurance is designed to
assure repayment of an extension of credit in the
event of death of a co-signer or co-maker of a
note. Since each of the co-signers or co-makers
may be individually responsible for repayment of
the credit extension, the Board regards insurance
covering each to be directly related to an extension
of credit.
The Board also has previously found that
various forms of insurance that protect the collat
eral in which a subsidiary has a security interest
as a result of an extension of credit are directly
related to an extension of credit within the meaning
of § 225.4(a)(9) of Regulation Y. A secured ex
tension of credit is usually granted in reliance upon
the value of the collateral securing the loan. Thus,
insurance is essential from the lender’s standpoint
to assure that the value of the collateral will not
be impaired by physical damage. The direct rela
tionship of the insurance transaction and the ex
tension of credit is further apparent in that the
presence or lack of insurance protecting the loan
collateral constitutes an essential element of the
lender’s credit evaluation. This finding is in accord
with the Board’s Interpretation pertaining to in
surance that supports the lending transactions of
a bank or bank-related firm in a holding company
system (12 CFR 225.128).
Since Applicant’s proposal involves the de novo
provision of additional types of credit-related in
surance at offices of Crown which are presently
owned by Applicant, it appears that consummation
of this proposal would not result in any adverse
effects upon actual or probable future competition.
Furthermore, it is anticipated that approval of this
application would enable Crown to provide its
customers with a convenient, alternative source for
these additional types of insurance.
There is no evidence in the record indicating
that consummation of the proposal would result
in any undue concentration of resources, unfair
competition, conflicts of interests, unsound bank
ing practices, or other adverse effects.
6See Order o f M ay 2 1, 1973, approving application of
Northwest Bancorporation to acquire Banco Credit Life Insur
ance Com pany (38 F.R . 14205), and Order of N ovem ber 12,
1973, approving application o f Irwin Union Corporation to
acquire Irwin U nion Credit Insurance Company (60 B u ll et in
138).
253
Based upon the foregoing and other consid
erations reflected in the record, the Board has
determined, in accordance with the provisions of
§ 4(c)(8), that consummation of this proposal can
reasonably be expected to result in benefits to the
public that outweigh possible adverse effects. Ac
cordingly, the application is hereby approved. This
determination is subject to the conditions set forth
in § 225.4(c) of Regulation Y and to the Board’s
authority to require such modification or termina
tion 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 St.
Louis, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
March 12, 1975.
Voting for this action: Vice Chairman Mitchell and
Governors Sheehan, Bucher, Holland, Wallich, and
Coldwell. Absent and not voting: Chairman Burns.
(Signed)
[ s e a l]
T heodore
E.
A llis o n ,
Secretary of the B o a rd .
G am ble -S kogm o , I n c .,
M in n e a p o l is , M inneso ta
O rder Denying Exemption from Prohibitions
A gainst Nonbanking A ctivities of Bank
Holding Com panies
Gamble-Skogmo, Inc., Minneapolis, Minnesota
(“ Applicant” ), a bank holding company within
the meaning of the Bank Holding Company Act
(12 U.S.C. 1841), by virtue of its ownership of
95 per cent of the outstanding capital stock of
Gambles Continental State Bank, St. Paul, Min
nesota (“ Bank” ), has applied to the Board of
Governors, pursuant to § 4(d) of the Act, for an
exemption from the prohibitions of Section 4 of
the Act (relating to nonbanking activities of, and
acquisitions by, a bank holding company).
Notice of receipt of the application, affording
an opportunity for interested persons to submit
comments or views and request a hearing, was
published in the Federal Register (39 Federal
Register 22470). Time for filing comments, views
and requests for a hearing has expired. No com
ments have been received nor has any party re
quested a hearing.
254
Federal Reserve Bulletin □ April 1975
Section 4(d) of the Act provides that, to the
extent such action would not be substantially at
variance with the purposes of the Act and subject
to such conditions as the Board considers neces
sary to protect the public interest, the Board may
grant an exemption from the provisions of Section
4 of the Act to a bank holding company that
controlled one bank prior to July 1, 1968, and
has not thereafter acquired the control of any other
bank in order (1) to avoid disrupting business
relationships that have existed over a long period
of years without adversely affecting the banks or
communities involved, or (2) to avoid forced sales
of small locally owned banks to purchasers not
similarly representative of community interests, or
(3) to allow retention of banks that are so small
in relation to the holding company’s total interests
and so small in relation to the banking market to
be served as to minimize the likelihood that the
bank’s powers to grant or deny credit may be
influenced by a desire to further the holding com
pany’s other interests.
The Board has considered the application in
light of the factors set forth in § 4(d) of the Act
and finds that:
Applicant (total assets of $599.2 million as of
January 26, 1974) is the 21st largest retailing
company in the United States,1 and is primarily
engaged in the retailing and wholesaling of a
variety of durable and soft goods in 38 States and
throughout Canada. Applicant markets its products
through 673 company owned stores; 2,850 indi
vidually owned and operated franchise dealer
stores; and through mail order catalogs. Applicant
also engages in various nonbanking activities in
cluding offering various forms of group credit life
and health insurance, leasing of motor vehicles,
and real estate development. Applicant acquired
control of Bank in November 1967, and has
maintained its control of Bank since that time.
Bank’s total assets are $17.9 million, equal to
about 3 per cent of Applicant’s consolidated
assets. Bank accounts for .5 per cent of Appli
cant’s after tax income and .06 per cent of its
revenue.2 Bank has deposits of $14.2 million,
representing .2 per cent of all commercial bank
deposits in the Minneapolis-St. Paul SMSA (the
relevant banking market), wherein Bank ranks as
the 42nd largest of 123 banking organizations
competing in that market.3 Also competing in the
1Fortune, “The Fifty Largest Retailing Companies (ranked
by sales and assets)” , page 120 (July 1974).
2A11 financial data are as of December 31, 1972.
3All market data are as of June 30, 1974.
market are such significant banking organizations
as Northwest Bancorporation and First Bank Sys
tem. Accordingly, it does not appear that Bank
is a significant competitor in the relevant banking
market.
The Bank Holding Company Act Amendments
of 1970 were enacted to assure the continuation
of the policy of separating banking from other
commercial enterprises. On the other hand, Sec
tion 4(d) of the Act, which was added as part of
the 1970 Amendments, is a departure from this
policy and is designed to provide a limited number
of companies which qualify a complete exemption
from the general prohibitions against nonbanking
activities contained in the Act, provided such an
exemption “ would not be substantially at variance
with the purposes of this A ct.”
To assure that the granting of an exemption
would not be substantially at variance with the
purposes of the Act, the Board believes that a
company seeking an exemption should be able to
demonstrate that it has not used its bank subsidiary
to gain any special advantage for its nonbank
activities nor engaged in any other practices that
would be to the detriment of such banking subsid
iary or the community served thereby. On the basis
of the facts of record, the Board is unable to
conclude that the relationship of Applicant to Bank
has resulted in benefits to Bank and the community
served by it so as to warrant the granting of the
exemption under § 4(d) of the Act.
Under the Act the Board has broad discretion
to grant the exemption, and Congress has provided
that the exemption should only be granted where
such action would not be substantially at variance
with the purposes of the Act. Accordingly, the
Board has exercised this authority only in a limited
number of circumstances and in those instances
where the bank was in generally sound financial
condition and was properly serving its community,
and the holding company had not abused its rela
tionship with the bank. In this case, however, the
Board does not regard the manner in which Appli
cant has conducted itself with respect to Bank as
evidencing clearly that the granting of the § 4(d)
exemption would be appropriate or in the public
interest.
As noted above, Section 4(d) sets forth the
criteria upon which the Board may grant the ex
emption from the nonbanking prohibitions of the
Act. It appears that Applicant may qualify under
the third criterion, namely, that Bank is small in
relation to the holding company’s total interests
and small in relation to the banking market to be
served. However, with respect to either the first
L aw D epartm ent
or second criterion, it is clear the relationship with
Bank has not existed over a long period of years
(Bank was acquired by Applicant in November
1967) and Applicant is not so uniquely repre
sentative of community interests that sale of Bank
would result in an adverse effect upon the com
munity.4
Turning our attention specifically to Applicant’s
operation of Bank, the Board notes that Bank is
in generally satisfactory condition. Nevertheless,
Bank’s overall operation under the direction of
Applicant cannot be characterized as being entirely
in the public interest. In particular, it is noted that
Bank has not been an aggressive lending organi
zation in serving the needs of the public. Its loan
to deposit ratio (exclusive of Federal Funds sold)5,
as of year-end 1973, is 23.8 per cent (31.2 per
cent as of June 30, 1974), compared with a ratio
of 57.7 per cent for all 9th Federal Reserve District
member banks with deposits of $10-$25 million.
Other facts of record also support the view that
Bank is not an aggressive lending institution.6 In
addition, it appears that the resources of Bank
have, in fact, been used to further the other inter
ests of Applicant. Bank maintains substantial bal
ances at its correspondent banks as compensating
balances on lines of credit granted to Applicant
by those banks. While Applicant does compensate
Bank for maintaining these balances, it still re
mains that a substantial portion of Bank’s re
sources are being used for the benefit of Applicant
rather than the community at large. Other evidence
of record also suggests that Applicant has directed
the operations and policies of Bank so as to benefit
Applicant and its employees rather than the public
for which it was established. Accordingly, the
Board concludes that Applicant has not demon
strated that an exemption is warranted under the
provisions of § 4(d) of the Act.
On the basis of the foregoing and other consid
erations reflected in the record, it is the Board’s
judgment that approval of this application for an
exemption from the Act’s restrictions relating to
nonbanking activities and acquisitions would not
be in the public interest, and the application should
be, and is hereby, denied.
4See Board Order approving the application of M ilton Hershey School and School Trust, H ershey, Pennsylvania, for an
exem ption under Section 4(d) o f the Act (1 9 7 2 Federal Reserve
B u l l et in 319).
5Total of Federal Funds sold as of year-end 1973 was $5 .8
m illion, compared with a loan volum e of $ 3 .8 m illion.
6The loan to asset ratios for year-end 1973 are as fo l
low s: Bank 3 7 .8 per cent; all 9th Federal R eserve District
member banks with deposits o f $1 0 -$ 2 5 m illion, 5 4 .5 per cent.
255
By order of the Board of Governors, effective
March 17, 1975.
Voting for this action: Chairman Bums and Gover
nors Mitchell, Sheehan, Bucher, Holland, Wallich, and
Coldwell.
(Signed)
[s e a l]
G r iffith
L.
G arw ood,
A ssista n t S e cre ta ry o f the B o a rd .
ORDER UNDER BANK M ERGER ACT
Iow a S tate B ank a n d T rust C o m p a n y ,
F airfield , Iowa
O rd e r D en yin g A cq u isitio n o f A sse ts o f B ank
Iowa State Bank and Trust Company, Fairfield,
Iowa (“ Iowa Bank” ), a member State bank of
the Federal Reserve System, has applied for the
Board’s approval pursuant to the Bank Merger Act
(12 U.S.C. § 1828(c)) of the acquisition of the
assets and assumption of the liabilities of Farmers
Savings Bank, Packwood, Iowa (“ Farmers
Bank” ). As an incident to the proposal, the present
office of Farmers Bank would become a branch
of Iowa Bank.
As required by the Act, notice of the proposed
transaction, in form approved by the Board, has
been published and the Board has requested reports
on competitive factors from the Attorney General,
the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation. The Board has
considered the application and all comments and
reports received in light of the factors set forth
in the Act.
The relevant geographic market in this case is
approximated by Jefferson County and the Rich
land portion of Keokuk County. Iowa Bank is
located in Fairfield, the county seat of Jefferson
County. Fairfield is the shopping and commercial
center of Jefferson County. Farmers Bank is lo
cated in northwest Jefferson County, and is 15
miles distant from the nearest office of Iowa Bank.
Customers of Farmers Bank shop and work in
Fairfield. Accordingly, Iowa Bank is a convenient
banking alternative for those customers. The
record indicates that a significant amount of bank
ing business of Iowa Bank is done with customers
located in the service area of Farmers Bank. Con
versely, the record indicates that a significant
amount of banking business of Farmers Bank
derives from customers located in Iowa Bank’s
service area.
Iowa Bank, with deposits of roughly $17.5
256
Federal Reserve Bulletin □ April 1975
million,1 is the second largest of five banks in the
relevant banking market, and controls approxi
mately 36.2 per cent of the total deposits in com
mercial banks in the market. The largest bank in
the relevant market controls approximately 41.8
per cent of market deposits. Farmers Bank, with
deposits of roughly $3.7 million, is the fourth
largest bank in that banking market, and controls
approximately 7.7 per cent of market deposits.
Consummation of the acquisition, therefore,
would eliminate one of the limited number of
competitors in the market, result in Iowa Bank
controlling approximately 43.9 per cent of the
deposits, and thereby increase the already high
level of concentration of banking resources in the
market. Also, existing competition between Iowa
Bank and Farmers Bank would be eliminated by
the proposed acquisition. The effect of the
proposed transactions would be a substantial les
sening of competition in the relevant market. In
its considerations of this application, the Board
regards such a lessening of competition as an
adverse factor.
On the basis of the foregoing and the other
factors in the record, the Board concludes that the
proposal would increase the level of banking con
centration to an undesirable level, and eliminate
existing competition between the institutions in
volved. Accordingly, under § 1828(c), unless such
anticompetitive effects are clearly outweighed in
the public interest by the probable effect of the
transaction in meeting the convenience and needs
of the community to be served, the statute requires
denial of the application.
The financial and managerial resources and fu
ture prospects of Iowa Bank are satisfactory.
Farmers Bank does appear to have a management
succession problem that would be alleviated by
consummation of the proposed transaction. There
fore, banking factors are consistent with approval
of the application. While community needs for
banking services are not going unmet, consumma
tion would provide a source in Farmers Bank’s
service area for large loans that presently exceed
Farmers Bank’s lending limit. While these benefits
might serve the convenience and needs of the
relevant area, they would not outweigh the adverse
effects this propo al would have on competition
in the relevant m; ket. Further, the parties to the
proposed transaction have not satisfied their burden
of demonstrating the absence of less anticompeti
tive means to achieve such benefits to the conven
ience and needs of the community to be served.
On the basis of all relevant facts contained in
the record, and in light of the factors set forth
in the Bank Merger Act (12 U.S.C . § 1828(c)),
it is the Board’s judgment that the anticompetitive
effects of the proposed acquisition are not 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.
The Board concludes, therefore, that the proposed
transaction is not in the public interest and, ac
cordingly, the application is hereby denied.
By the order of the Board of Governors, effec
tive March 19, 1975.
Voting for this action: Vice Chairman Mitchell and
Governors Sheehan, Bucher, and Wallich. Absent and
not voting: Chairman Burns and Governors Holland and
Coldwell.
(Signed)
*A11 banking data are as of June 3 0 , 1974.
[s e a l]
T heodore
E.
A llis o n ,
S e c reta ry o f the B o a rd .
O R D E R S N O T P R IN T E D IN T H IS IS S U E
O R D ER S A PPR O V ED BY T H E B O A R D OF G O V ER N O R S
During March 1975, 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.
L aw D epartm ent
257
O R D ER S U N D E R SE C T IO N 3(a)(1) O F BA N K H O LD IN G C O M PA N Y A C T—
A PPL IC A T IO N S F O R FO R M A T IO N O F BA N K H O LD IN G C O M PA N Y
A p p lic a n t
Cullen Bankers, Inc.,
Houston, Texas
Frontier Bancorporation
of Denver, Inc., Denver,
Colorado
B a n k (s)
Cullen Center Bank &
Trust, Houston, Texas
and Citizens National
Bank of Dallas, Dallas,
Texas
Frontier Bank of Denver,
Denver, Colorado
B o a rd a ctio n
(effective
d a te )
F ed era l
R e g iste r
citation
3/31/75
40 F.R. 15453
4/7/75
3/26/75
40 F. R. 15010
4/3/75
O R D ER S U N D ER SE C T IO N 3(a)(3) O F BA N K H O LD IN G C O M PA N Y AC T—
A PPL IC A TIO N S FO R A C Q U ISIT IO N O F BANK
A p p lic a n t
Barnett Banks of Florida,
Inc., Jacksonville,
Florida
First International
Bancshares, Inc.,
Dallas, Texas
Helmerich & Payne, Inc.,
Tulsa, Oklahoma
Mercantile Bancorporation,
Inc., St. Louis, Missouri
New England Merchants
Company, Inc., Boston,
Massachusetts
PanNational Group Inc.,
El Paso, Texas
Sun Banks of Florida,
Inc., Orlando, Florida
B an k(s)
First Marine Bank
of Fort Lauderdale,
Fort Lauderdale,
Florida
San Jacinto State
Bank, Pasadena,
Texas
Utica Bankshares
Corporation, Tulsa,
Oklahoma
Bank of Eldon,
Eldon, Missouri
The Fall River
National Bank,
Fall River,
Massachusetts
The First National
Bank of Waco, Waco,
Texas
Sun Bank of Seminole,
Altamonte Springs,
Florida
B o a rd actio n
(effective
d a te )
F ed era l
R e g iste r
cita tio n
3/5/75
40 F.R. 11816
3/13/75
3/25/75
40 F. R. 15009
4/3/75
3/3/75
40 F.R. 11647
3/12/75
3/6/75
40 F.R. 11818
3/13/75
40 F.R. 12329
3/18/75
3/10/75
3/31/75
40 F.R. 15455
4/7/75
3/21/75
40 F.R. 14376
3/31/75
O R D E R U N D E R SE C T IO N 3(a)(5) OF B A N K H O LD IN G C O M PA N Y A C T—
A PPL IC A T IO N TO M E R G E BA N K H O LD IN G CO M PA N Y
A p p lic a n t
American Bankcorp, Inc.,
Lansing, Michigan
B an k(s)
Mid-America Fidelity
Corporation, Ann
Arbor, Michigan
B o a rd action
(effective
d a te)
3/21/75
F ed era l
R e g iste r
cita tio n
40 F.R. 14374
3/31/75
258
Federal Reserve Bulletin □ April 1975
O R D E R S U N D E R SE C T IO N 4(c)(8) O F BA N K H O L D IN G C O M PA N Y A C T—
A PPL IC A T IO N S T O EN G A G E IN N O N B A N K IN G A C TIV ITIES
A p p lic a n t
BankAmerica Corporation,
San Francisco, California
First Alabama Bancshares,
Inc., Montgomery, Alabama
First Tennessee National
Corporation, Memphis,
Tennessee
MorAmerica Financial Cor
poration, Cedar Rapids,
Iowa
Northwestern Financial Cor
poration, North Wilkesboro,
North Carolina
Walther E. Heller International
Corporation, Chicago,
Illinois
N o n ban kin g com pan y
(o r a ctivity)
F ed era l
R e g iste r
cita tio n
B o a rd actio n
(effective
d a te )
BA Insurance Agency,
San Francisco, Cali
fornia
First Alabama Life In
surance Company,
Phoenix, Arizona
Pioneer Bank, Chattanoo
ga, Tennessee; and
Valley Company,
Chattanooga, Tennessee
Bezanson Investments
Inc., Cedar Rapids,
Iowa
Northwestern Finance
Company, North
Wilkesboro, North Carolina
Lakeshore Commercial
Finance Corporation,
Milwaukee, Wisconsin
3/14/75
40 F.R. 13042
3/24/75
3/17/75
40 F.R. 13045
3/24/75
3/12/75
40 F.R. 12715
3/20/75
3/10/75
40 F.R. 12329
3/18/75
3/19/75
40 F.R. 14121
3/28/75
3/14/75
40 F.R. 13047
3/24/75
O R D ER S A PPR O V ED BY TH E SE C R ETA R Y OF TH E BO A R D
During March 1975, applications were approved by the Secretary of the Board 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 Publications Services, Division of Administrative Services, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.
O R D ER S U N D E R SE C T IO N 3(a)(1) O F BA N K H O LD IN G C O M PA N Y A C T—
A PPL IC A TIO N S FO R FO R M A T IO N O F BA N K H O L D IN G C O M PA N Y
A p p lic a n t
American Bancshares, Inc.,
Tulsa, Oklahoma
B.O.C. Corporation,
Sheridan, Wyoming
Capital City Bancshares, Inc.,
Prairie Village, Kansas
Darien Bancorporation, Inc.,
Darien, Wisconsin
B a n k (s)
American Bank of
Oklahoma, Pryor
Creek, Oklahoma
Bank of Commerce,
Sheridan, Wyoming
Capital City State
Bank & Trust Company,
Topeka, Kansas
The Farmers State
Bank, Darien,
Wisconsin
B o a rd actio n
(effective
d a te )
F ed era l
R e g iste r
cita tio n
3/3/75
40 F.R. 11646
3/12/75
3/11/75
40 F.R. 12713
3/20/75
40 F.R. 11818
3/13/75
3/5/75
3/31/75
40 F.R. 15454
4/7/75
Law D epartm ent
259
O R D ER U N D E R SE C T IO N 3(a)(3) OF BA N K H O L D IN G C O M PA N Y A C T—
A PPLIC A T IO N FO R A C Q U ISIT IO N O F BANK
A p p lic a n t
B o a rd actio n
(effective
d a te )
B a n k (s)
3/14/75
United Bank of
Macon, Macon,
Missouri
Mercantile Bancorporation
Inc., St. Louis, Missouri
F ederal
R e g iste r
citation
40 F.R. 13048
3/24/75
O R D ER U N D E R SEC TIO N 4(c)(8) O F BA N K H O LD IN G C O M PA N Y AC T—
A PPL IC A T IO N T O E N G A G E IN N O N B A N K IN G A C TIV ITIES
A p p lic a n t
First Commercial Banks, Inc.,
Albany, New York
F ederal
R e g iste r
citation
B o a rd action
(effective
d a te )
N on ban kin g com pan y
(o r a ctivity)
FCB Life Insur
ance, Ltd.,
Phoenix, Arizona
3/31/75
40 F.R. 15454
4/7/75
O R D ER S A PPR O V E D BY FED ER A L R E SER V E BAN K S
During March 1975, 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.
O R D ER U N D E R SEC T IO N 4(c)(8) OF BANK H O LD IN G C O M PA N Y A C T—
A PPL IC A TIO N TO E N G A G E IN N O N B A N K IN G A C TIV ITIES
A p p lic a n t
Burlingame Bankshares,
Inc., Burlingame,
Kansas
N on ban kin g
co m p a n y
(o r a c tiv ity )
First State
Insurance
Agency,
Burlingame,
Kansas
R e se rv e
B ank
E ffective
d a te
Kansas City
3/5/75
F ed era l
R e g iste r
cita tio n
40 F.R. 12329
3/18/75
O R D ER S U N D E R SE C T IO N S 3 A N D 4 OF BA N K H O LD IN G C O M PA N Y A C T A PPL IC A T IO N S TO FO R M BA N K H O L D IN G C O M PA N Y A N D E N G A G E IN
N O N B A N K IN G A C TIV ITIE S
A p p lic a n t
Chetopa State Banc
shares, Inc.,
Coffeyville, Kansas
Stapleton Investment
Co., Stapleton,
Nebraska
B an k(s)
Chetopa State
Bank & Trust
Co., Chetopa,
Kansas
Bank of Sta
pleton,
Stapleton,
Nebraska
N on ban kin g
com pan y
(o r a c tiv ity)
Sale of
general
lines of
insurance
Burnham
Insurance
Agency
F ed era l
R e g iste r
cita tio n
R e se rv e
B an k
E ffective
d a te
Kansas City
3/13/75
40 F.R. 13043
3/24/75
Kansas City
3/13/75
40 F.R. 13049
3/24/75
260
Announcements
A P P R O V A L O F M IA M I B R A N C H
The Board of Governors of the Federal Reserve
System announced on March 27, 1975, its ap
proval of a proposal by the Federal Reserve Bank
of Atlanta to establish a branch office at Miami,
Florida.
A Federal Reserve facility for check collection
and for distribution of currency and coin has been
in operation in Miami since mid-1971. This facil
ity— to be designated a branch— will expand its
operations in phases to include the maintenance
of member bank reserve accounts and a fiscal
agency function for the sale of Treasury securities.
The additional functions will begin later this
year at a date to be announced by the Federal
Reserve Bank of Atlanta.
The new branch will be the first established by
the Federal Reserve since 1927 when offices were
opened at San Antonio (July 5) and Charlotte
(December 1). The branch will provide service for
the same area now served by the Miami facility—
the 13 southern Florida counties of Broward,
Charlotte, Collier, Dade, Glades, Hendry, Indian
River, Lee, Martin, Monroe, Okeechobee, Palm
Beach, and St. Lucie.
In authorizing the establishment of the branch,
the Board noted the rapid growth that has occurred
in recent years in southern Florida. The estimated
population of the Miami metropolitan area is about
1.45 million persons compared with approximately
1.12 million in 1968. There are currently more
than 260 commercial banks in the area to be served
by the branch compared with about 150 banks
when the Miami facility was authorized in 1970.
The new branch will be the 25th to be operated
by the 12 Federal Reserve Banks. In addition, the
Federal Reserve operates separate check process
ing centers at Lewiston, Maine; Windsor Locks,
Connecticut; Cranford, New Jersey; Jericho, New
York; Columbia, South Carolina; Columbus,
Ohio; Indianapolis, Indiana; Des Moines, Iowa;
and Milwaukee, Wisconsin.
A M E N D M E N T T O R E G U L A T IO N Q
The Board of Governors on April 14, 1975, an
nounced an amendment to Regulation Q (Interest
on Time Deposits) to prohibit member banks from
issuing NOW accounts (interest-bearing savings
accounts from which check-like withdrawals can
be made) to governmental units effective May 16.
Accounts established prior to May 16, 1975,
may be maintained through December 31, 1975.
R E S E R V E R E Q U IR E M E N T O N
F O R E IG N B O R R O W IN G S
The Board of Governors on April 9, 1975, an
nounced a reduction from 8 per cent to 4 per cent
in the reserve requirement on foreign borrowings
of member banks, primarily Euro-dollars.
This action will bring the Euro-dollar reserve
requirement into better alignment with reserve
requirements on the time and savings deposits of
domestic residents and may strengthen the position
of the U.S. dollar in the foreign exchange markets.
The reduction will affect reserves that must be
maintained against Euro-dollar borrowings in the
4-week period beginning May 22. The actual re
serve will be based on the level of borrowings
during the period from April 10 through May 7.
The action will reduce required reserves by about
$65 million.
Also affected by the action are foreign-owned
banking institutions that have voluntarily main
tained a reserve requirement on Euro-dollar bor
rowings since mid-1973. The Board had originally
requested the voluntary action during a period of
monetary restraint. Although current monetary
policy is not directed toward credit restraint, the
Board believes it is important that banking institu
tions operating in the United States receive parallel
treatment with respect to maintaining reserves on
increases in their Euro-dollar borrowings. There
fore, the Board has requested the foreign-owned
institutions to maintain a voluntary reserve of 4
per cent against increases in net foreign borrow
ings that exceed the average of such borrowings
during May 1973.
The reduction in the voluntary reserve from 8
per cent to 4 per cent will release about $ 15 million
in reserves. A reserve requirement on Euro-dollar
borrowings by member banks was originally es
tablished in 1969. The reserve ratio has been 8
per cent since May 1973.
Announcements
T E L E P H O N E U S E IN B A N K I N G
On April 7, 1975, the Board of Governors author
ized member banks to permit use of the telephone
by their customers to withdraw funds from their
savings accounts or to transfer funds from a sav
ings account. This action rescinded a policy in
effect since 1936.
The Board has studied the telephone withdrawal
systems currently being developed by several
member banks and feels that the security and
recordkeeping devices made possible by new
technology and incorporated into these systems
will keep errors and unauthorized use to a mini
mum. Further, the Board recognizes that the tele
phone has become an accepted medium for trans
mitting financial data and that the telephone merely
provides the customer with an additional method
of communicating instructions regarding his ac
count to his bank. Thus, the Board’s action will
permit member banks to offer more convenient
banking services to their customers.
S P E E D -U P O F P U B L IC A T IO N
O F P O L IC Y R E C O R D S
The Federal Open Market Committee announced
on March 24, 1975, that it had voted to speed
up publication of the records of policy actions
taken at each of its monthly meetings.
At its meeting of March 18, the Committee
revised its Rules Regarding the Availability of
Information to reduce the delay between a meeting
and the publication of the information regarding
the domestic policy directive from approximately
90 days to approximately 45 days.
A delay of approximately 90 days had been in
effect since m id-1967 when the rules were changed
to comply with the Freedom of Information Act.
Prior to 1967, the records of policy actions were
published only in the Board’s Annual Reports to
Congress.
In the light of experience, the Committee de
cided that a delay as long as 90 days was no longer
necessary to avoid an unacceptable degree of risk
that speculators would be able to take unfair ad
vantage of the information or that market reactions
would impair the effectiveness of the Committee’s
functions.
CHANGES
IN B O A R D S T A F F
The Board of Governors announced the transfer
of Normand R. V. Bernard, Assistant Secretary,
Office of the Secretary, to Special Assistant to the
261
Board, Office of Managing Director for Research
and Economic Policy, effective April 7, 1975.
The Board also announced the temporary ap
pointment of Mr. Robert Smith III, Assistant Vice
President and Assistant Secretary, Federal Reserve
Bank of Dallas, as an Assistant Secretary of the
Board. Mr. Smith received a B.S. from Texas A
& M University. He joined the Federal Reserve
Bank of Dallas in 1968, was named Assistant
Secretary in 1972, and became Assistant Vice
President for Public Information and Assistant
Secretary in 1974. Mr. Smith served as Secretary
of the Conferences of Presidents and First Vice
Presidents of the Federal Reserve Banks in
1973-74.
FEDER AL RESER V E B A N K A N D
B R A N C H D IR E C T O R C H A N G E S
Frank A. Jones, Jr., President, Cook Industries,
Inc., Memphis, Tennessee, was appointed a
director of the Memphis Branch of the Federal
Reserve Bank of St. Louis, effective March 3,
1975, to succeed C. Whitney Brown, President,
S. C. Toof & Company, Memphis, Tennessee,
whose term as a director expired December 31,
1974.
Cornell C. Maier, President and Chief Execu
tive Officer, Kaiser Aluminum and Chemical Cor
poration, Oakland, California, was appointed a
director of the Federal Reserve Bank of San Fran
cisco, effective March 11, 1975, to succeed Mas
Oji, President, Oji Brothers Farm, Inc., Yuba
City, California, whose term as a director expired
December 31, 1974.
Lloyd E. Cooney, President, KIRO, Inc., Seat
tle, Washington, was appointed a director of the
Seattle Branch of the Federal Reserve Bank of San
Francisco, effective February 20, 1975, to succeed
Robert C. Whitwam, President, American Na
tional Bank of Edmonds, Edmonds, Washington,
whose term as a director expired December 31,
1974.
A D M IS S IO N O F S T A T E B A N K S T O
M E M B E R S H IP IN T H E
FEDERAL RESERVE SYSTEM
The following banks were admitted to membership
in the Federal Reserve System during the period
March 16, 1975, through April 15, 1975:
F lorida
South V enice...................... South County Bank
V irgin ia
Stephens C ity .........Bank of Frederick County
262
Industrial Production
R e le a s e d fo r p u b lic a tio n A p r il 15
Industrial production declined further in March to
109.6 per cent of the 1967 average— 1.0 per cent
below the February index, which was revised
upward, and 12.1 per cent below a year earlier.
The drop in March was substantially smaller than
those in each of the preceding 4 months. Consumer
goods output rose slightly for the first time since
last summer, and the decline in materials produc
tion, although large, was less than in recent
months.
Output in the consumer goods industries in
creased 0.6 per cent in March, as auto assemblies
rose 24 per cent to an annual rate of 5.6 million
units. Although unit sales of new domestic autos
declined following the termination of most rebate
programs, sales exceeded output in March and
dealers’ stocks were reduced somewhat further.
Production of other durable goods was little
changed, after having fallen rapidly since its peak
in mid-1974. Output of nondurable goods, which
has dropped more moderately, also changed little
in March. However, production of business
equipment continued to drop sharply and was 12
per cent below the September 1974 high.
Production of industrial materials declined fur
ther with widespread reductions in both durable
and nondurable goods materials. Output of metals,
equipment parts, paper, and chemical materials all
declined. Materials production is currently about
one-fifth below the level reached last autumn,
while output in final goods industries has declined
about 10 per cent.
INDUSTRIAL PRODUCTION
Seasonally adjusted, ratio scale, 1967*100
MATERIAILS
f t 1
‘----'tesr.
PR0DUC1 S’ 1' ~
I v l T0TAL
1
....n t . 1
F .R . ind exes, seasonally adjusted. Latest figures: March.
* A uto sales and stocks include imports.
S easonally adjusted
1967 = 100
Per cent
changes from —
1975
Industrial production
1974
M onth
ago
Jan.
F e b .p
Mar.*’
T o ta l ..........................................................
Products, total ..................................................
Final products ..............................................
C onsumer goods .....................................
Durable goods ...................................
Nondurable goods ...........................
B usiness equipm ent .............................
113.7
115.6
115.1
120.6
104.2
126.9
121.9
1 1 0 .7
113.2
112.8
118.0
100.2
124.8
119.5
1 0 9 .6
112.2
112.2
118.7
103.1
124.7
116.7
-1 .0
- .9
- .5
.6
2 .9
- .1
- 2 .3
Intermediate products ...............................
Construction products .........................
M aterials ..............................................................
117.5
116.9
110.5
114.5
112.7
106.5
112.3
110.5
104.9
-1 .9
- 2 .0
-1 .5
''Preliminary.
''Estimated.
Per cent changes, annual rate
1975
Year
ago
Q3
Q4
Ql
-1 2 .1
- 8.5
- 7 .3
- 7 .6
- 1 9 .8
- 3.1
- 8.5
-
.3
.6
2 .0
0
-4 .5
2 .2
4 .0
-1 3 .1
- 8.7
- 6 .5
-1 0 .8
-3 7 .0
- 1.2
- 2 .4
- 3 3 .0
-2 4 .1
- 2 3 .6
-2 1 .9
-5 4 .9
- 9 .9
-3 2 .6
-1 2 .3
- 1 4 .7
-1 8 .6
-3 .7
-7 .7
- .9
-1 5 .9
-2 1 .6
-2 1 .5
-2 6 .4
-2 5 .1
- 4 7 .0
Financial and Business Statistics
CONTENTS
GUIDE TO TABULAR PRESENTA
TION ON INSIDE BACK COVER
STATISTICAL RELEASES: REFER
ENCE ON INSIDE BACK COVER
U .S . STATISTICS
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
2 M e m b er bank re se rv e s , F ederal
R e se rv e B an k c re d it , an d re la ted item s
5 F ederal fun ds— M o n ey m arket banks
6 R e se rv e B an k in terest rates
1 R e se rv e requirem ents
8 M axim um in terest rates; m argin
requirem ents
9 O pen m arket accou n t
10 F ed era l R e se rv e B an ks
l l B an k d eb its
12 M o n ey stock
13 B an k reserves; bank cred it
14 C om m ercial ban ks , by classes
18 W eekly rep o rtin g banks
23 B u sin ess loans o f banks
24 D em a n d d e p o sit ow n ership
25 L oan sa le s b y banks
25 O pen m arket p a p e r
26 In terest rates
29 S ecu rity m arkets
29 S tock m arket cred it
30 S a vin gs institutions
32 F ederal finance
34 U.S. G overn m en t secu rities
37 F ed era lly sp o n so red cre d it agen cies
38 S ecu rity issues
41 B u sin ess finance
42 R e a l esta te cred it
45 C on su m er cred it
A 48 In dustrial p ro d u ctio n
A 50 B u sin ess a ctivity
A 50 C on stru ction
A 52 L a b o r fo r c e , em p lo ym en t , aw /
u nem ploym ent
A 53 C on su m er p ric e s
A 53 W h o lesa le p ric e s
A 54 N a tio n a l p ro d u c t an d incom e
A 56 FZou> o / fun ds
INTERNATIONAL STATISTICS:
A
A
A
A
58
59
59
60
A 61
A 74
A 75
A 75
U.S. b a lan ce o f p a ym en ts
F oreign tra d e
U.S. reserve a sse ts
G o ld re serves o f cen tra l banks an d
govern m en ts
In ternational ca p ita l tran saction s o f the
U nited S ta tes
O pen m arket ra tes
C en tral bank ra tes
F oreign exchange ra tes
TABLES PUBLISHED PERIODICALLY
A 76 N u m b er o f banks an d b ran ch es in
o p era tio n on D e c em b e r 3 1 , 1974
B an kin g an d m on etary sta tistic s , 1974:
A 78 A s s e ts an d lia b ilities o f la rg e
co m m ercia l banks
A 83 C o m m ercia l an d in dustrial loan s o f
large co m m ercia l banks
A 85 ‘ ‘T e rm ” co m m ercia l an d industrial
loans o f la rg e co m m ercia l banks
A 92 INDEX TO STATISTICAL TABLES
A2
BANK RESERVES AND RELATED ITEMS a APRIL 1975
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS
(In m illio n s o f d o lla rs)
F a cto rs su p p ly in g reserve funds
Reserve Bank credit outstanding
Period or date
U.S. Govt, securities1
Total
Held
under
repur
chase
agree
ment
Bought
out
right2
Loans
Float 3
5
381
142
94
83
170
652
1,117
1,665
3,235
3,570
3,905
3,479
3,414
Other
F.R.
assets 4
Total5
Gold
stock
Special
Drawing
Rights
certificate
account
Treas
ury
cur
rency
out
stand
ing
Averages of daily figures
1939—D ec.............................
1941—D ec.............................
1945—D ec.............................
1950—D ec.............................
1960—D ec.............................
2,510
2,219
23,708
20,345
27,248
2,510
2,219
23,708
20,336
27,170
1969—D e
1970—D e
1971— De
1972—D e
1973—De
57,500
61,688
69,158
71,094
79,701
57,295
61,310
868
1,086
321
107
1,049
1,298
1974— Ma r
Apr..............................
M ay............................
June............................
July.............................
Aug.............................
Sept.............................
Oct..............................
N ov.............................
D ec..............................
80,686
81,567
83,434
82,812
84,313
84,493
84,384
83,735
84,052
86,679
80,184
80,873
82,037
81,859
83,496
84,221
84,049
83,303
83,395
85,202
502
694
1,397
953
817
272
335
432
657
1,477
1,352
1,714
2,580
3,000
3,308
3,351
3,287
1,793
1,285
703
1975—Ja n
Feb..............................
Mar.P...................
86,039
84,744
84,847
85,369
83,843
84,398
670
901
449
1.....................
8 .....................
15.....................
22.....................
29.....................
87,903
86,317
85,520
86,105
86,341
85,746
85,587
85,381
85,191
85,448
5 .....................
12.......................
19.......................
26.......................
85,613
83,801
84,255
85,376
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
1,079
64,100
66,708
74,255
76,851
85,642
10,367
11,105
10,132
10,410
11.567
400
400
400
400
1,816
2,295
2,025
2,114
2,267
1,983
2,239
2,083
2,409
2,734
960
1,160
1,093
1,106
1,343
1,258
1,349
2,984
3,171
3,129
84,943
86,907
89,405
89,254
91,554
91,367
91,617
90,971
91,302
93,967
11.567
11.567
11.567
11.567
11.567
11.567
11.567
11.567
11.567
11,630
400
400
400
400
400
400
400
400
400
400
8,767
8,807
8,838
8,877
8,905
8,951
8,992
9,041
9,113
9,179
390
147
106
2,456
2,079
3,391
3,419
3,142
93,002
91,168
90,837
11,647
11,626
11,620
400
400
400
9,235
9,284
9,362
2,157
730
139
914
893
561
311
609
594
142
3.261
3,439
2,601
1,978
3,205
3,291
3,309
3,443
3,490
95,962
94,058
92,672
92,757
92,742
11.652
11.652
11.652
11.652
11,635
400
400
400
400
400
9,221
9,216
9,235
9,239
9,246
84,999
83,111
83,357
84,148
614
690
898
1,228
98
90
229
180
2,128
1,987
1.993
2.261
3,839
3,680
3,396
2,933
92,509
90,301
90,633
91,533
11,634
11,628
11,624
11,621
400
400
400
400
9,267
9,271
9,276
9,303
85,505
82,658
83,345
86,867
84,207
82,658
83,345
85,854
1,298
70
60
167
155
1 ,6 6 6
2,098
1.993
1,697
3,071
3,085
3,217
3,197
91,159
88,571
89,381
92,731
11,621
11,620
11,620
11,620
400
400
400
400
9,352
9,341
9,344
9,386
86,134
86,416
86,608
85,076
84,152
86,608
1,058
2,264
103
77
59
1,466
1,370
1,734
3,518
3,005
3,072
92,187
91,861
92,138
11,635
11,621
11,620
400
400
400
9,305
9,371
9,396
1.......................
8 .......................
15.......................
22.......................
29.......................
85,714
82,726
85,176
89,306
86,305
84,760
82,726
85,048
85,325
85,141
954
299
126
2,893
2,444
159
2 ,0 0 1
3,168
2,865
2,537
2,638
3,195
3,460
3,493
3,928
3,598
92,208
90,074
95,097
99,198
93,579
11.652
11.652
11.652
11.652
11,635
400
400
400
400
400
9,253
9,235
9,237
9,242
9,264
Feb.
5 .......................
12.......................
19.......................
26.......................
83,909
86,154
83,976
8 6 ,8 8 6
83,909
83,741
83,976
84,121
‘2,165
89
117
1,126
834
5,302
2,387
3,339
2,357
4,665
3,580
2,984
2,740
94,632
93,180
92,061
93,696
11,629
11,625
11,621
11,621
400
400
400
400
9,270
9,275
9,281
9,334
Mar.
5 .......................
12.......................
18.......................
26 .....................
83,282
80,626
83,955
88,078
83,282
80,626
83,955
85,991
2,087
58
87
854
814
2,561
2,306
2,637
2,045
3,156
3,170
3,161
3,139
89,733
86,856
91,262
95,104
11,620
11,620
11,620
11,620
400
400
400
400
9,339
9,343
9,348
9,389
c
c
c
c
c
,
6 8 868
’
70,790
78,833
78
205
378
290
304
2 ,0 1 2
2,956
3,239
4,322
4,629
5,396
6,841
7,145
7,611
8,293
8 ,6 6 8
Week ending—
1975—Jan.
Feb.
Mar.
5 .......................
12.......................
19.......................
26.......................
1,013
2 ,1 0 1
End of month
1975—Jan................................
Feb................................
Mar.?...........................
Wednesday
1975—Jan.
*128*
3,981
1,164
2,413
1 Includes Federal agency issues held under repurchase agreements
beginning Dec. 1, 1966, and Federal agency issues bought outright be
ginning Sept. 29, 1971.
2 Includes, beginning 1969, securities loaned—fully guaranteed by U.S.
Govt, securities pledged with F.R. Banks, and excludes (if any), securities
sold and scheduled to be bought back under matched sale-purchase
transactions.
3 Beginning with 1960 reflects a minor change in concept; see Feb.
1961 Bulletin, p. 164.
4 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R.
liabilities and capital” are shown separately; formerly, they were netted
together and reported as “Other F.R. accounts.”
5 Includes industrial loans and acceptances until Aug. 21, 1959, when
industrial loan program was discontinued. For holdings o f acceptances
on Wed. and end-of-month dates, see table on F.R. Banks on p. A-10.
See also note 3.
6 Includes certain deposits o f domestic nonmember banks and foreignowned banking institutions held with member banks and redeposited in
full with F.R. Banks in connection with voluntary participation by non
member institutions in the Federal Reserve System’s program o f credit
restraint.
As o f Dec. 12, 1974, the amount o f voluntary nonmember and foreign
agency and branch deposits at F.R. Banks that are associated with margi
nal reserves are no longer reported. However, deposits voluntarily held
by agencies and branches o f foreign banks operating in the United States
as reserves and Euro-dollar liabilities are reported.
N o t e s c o n tin u e d o n o p p o s ite p a g e .
APRIL 1975 □ BANK RESERVES AND RELATED ITEMS
A 3
MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued
(In m illio n s o f d o lla rs)
F a cto rs absorbing reserve funds
Desposits, other
than member bank
reserves
with F.R. Banks
Cur
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
53,591
57,013
61,060
66,060
71,646
656
427
453
350
323
71,081
72,176
72,876
73,749
74,556
74,709
75,098
75,654
77,029
78,951
77,780
76,979
77,695
Treas
ury
For
eign
Other
F.R.
ac
counts4
Other 3,6
Other
F.R.
lia
bilities
and
capital4
Member bank
reserves
Period or date
With
F.R.
Banks
rency
and
Tot als
Averages of daily figures
248
292
493
739
1,029
11,473
12,812
16,027
17,391
16,688
7:*9
1,531
1,247
920
250
353
495
2,595
11,473
12,812
16,027
17,391
19,283
1,194
849
1 .926
1,449
1,892
146
145
290
272
406
458
735
728
631
717
2,192
2.265
2,287
2,362
2,942
23,071
23,925
25,653
24,830
28,352
4,960
5,340
5,676
6,095
6,635
28,031
29,265
31,329
31,353
35,068
.1969— D ec.
.1970—Dec.
.1971—Dec.
.1972—Dec.
.1973—Dec.
334
308
286
293
275
283
303
315
302
220
1,803
1,712
3,000
2,015
2,795
2,633
2,451
1,601
864
1,741
311
328
320
491
296
326
456
294
370
357
699
702
699
691
773
831
766
869
770
874
2,998
2,985
3,168
3,187
3,216
3,240
3,345
3,260
3,149
3.266
28,450
29,469
29,861
29,672
30,514
30,264
30,156
29,985
29,898
29,767
6,450
6,402
6,600
6,824
6,765
6,920
6,811
6,939
7,174
34,966
35,929
36,519
36,390
37,338
37,029
37,076
36,796
36,837
36,941
.1974— Mar.
............. Apr.
.............May
..............June
.............July
.............Aug.
.............Sept.
.............Oct.
.............Nov.
.............Dec.
221
236
274
2,087
2,374
1,887
336
317
363
884
711
958
3,264
3,358
3,076
29,713
28,503
27,966
7,779
7,062
6,838
37,492
35,565
34,804
. 1975—Jan.
.............Feb.
6 ,6 6 8
.1939—Dec.
.1941—Dec.
. 1945—Dec.
.1950—Dec.
.1960—Dec.
..........Mar.p
Week ending—
79,655
78,922
78,191
77,431
76,666
189
192
226
244
252
2,606
1,850
1,352
1,618
3,005
333
324
446
279
272
896
986
901
828
798
3,339
3,071
3,194
3,366
3,395
30,218
29,981
29,652
30,482
29,635
7,370
7,331
8,555
7,783
7,605
37,588
37,312
38,207
38,265
37,240
. 1975—Jan.
76,456
77,052
77,298
76,964
246
239
234
240
2,634
1,492
1,960
3,489
342
270
364
300
848
634
612
703
3,741
3,342
3,162
3,239
29,543
28,573
28,304
27,920
7,431
7,456
6,814
.Feb.
6 ,6 8 6
36,974
36,029
35,118
34,606
77,022
77,715
77,874
77,767
255
258
272
294
2,845
590
386
3,424
340
309
332
376
988
923
994
843
3,238
2,952
3,006
3,088
27,845
27,186
27,883
28,345
6,950
7,296
6,627
6,488
34,795
34,482
34,510
34,833
76,343
76,834
78,007
250
254
307
3,540
2,884
4,269
391
409
402
748
901
709
3,415
3,326
3,120
28,839
28,644
26,740
7,431
6,950
6,847
36,270
35,594
33,587
1
.15
.2 2
.29
5
........ 1 2
...........19
...........26
.Mar. 5
...... 1 2
......... 19
.........26
End of month
. 1975—Jan.
.............Feb.
..........Mar.p
Wednesday
79,743
78,710
77,946
77,136
76,638
185
235
240
261
261
3,113
741
1,366
1,857
3,442
418
381
950
230
334
1,275
766
731
906
708
76,860
77,493
77,408
77,053
249
236
230
238
779
1,308
3,040
3,187
277
250
319
271
732
683
700
851
77,474
78,058
77,980
78,033
261
271
297
306
956
*
1,795
3,554
277
314
321
428
867
989
870
792
.
.
.
.
.
7 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed
thereafter. Beginning Jan. 1963, figures are estimated except for weekly
averages. Beginning Sept. 12, 1968, amount is based on close-of-business
figures for reserve period 2 weeks previous to report date.
8 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
2,935
3,058
3.232
3,618
3,446
25,843
27,470
31,922
36,484
30,049
7,370
7,331
8,555
7,783
7,605
33,213
34,801
40,477
44,267
37,654
4,859
3,174
3.232
3,229
32,175
31,336
28,434
30,223
7,431
7,456
6,814
6 ,6 8 6
39,606
38,792
35,248
36,909
2,951
2,893
2,971
3,080
28,308
25,695
28,396
30,320
6,950
7,296
6,627
6,488
35,258
32,991
35,023
36,808
........ 1975—Jan.
1
.15
.2 2
.29
.Feb.
........ 1 2
5
...........19
...........26
.Mar. 5
........1 2
........ 19
.........26
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. Transition period ended after
second quarter, 1974.
F o r o th er n o te s see o p p o s ite p a g e.
AND RELATED ITEMS □ APRIL 1975
RESERVES AND BORROWINGS OF MEMBER BANKS
(In m illio n s o f d o lla rs)
A ll m em b er bank s
L arge ba n k s2
nks
Reserves
Borrowings
New York City
City of Chicago
Excess
Excess
Total
held i
Re
quired
Excess1
11,473
12,812
16,027
17,391
6,462
9,422
14,536
16,364
5,011
3,390
1,491
1,027
3
5
334
142
2,611
989
48
125
192
58
540
295
14
8
19,283
22,719
18,527
22,267
756
452
87
454
29
41
19
111
4
15
25,260
27,221
28,031
29,265
31,329
24,915
26,766
27,774
28,993
31,164
345
455
257
272
165
238
765
1,086
321
107
18
100
56
34
25
40
230
259
25
35
31,353
35,068
31,134
34,806
219
262
1,049
1,298
-2 0
-2 3
34,966
35,929
36,519
36,390
37,338
37,029
37,076
36,796
36,837
36,941
34,790
35,771
36,325
36,259
37,161
36,851
36,885
36,705
36,579
36,602
176
158
194
131
177
178
191
91
258
339
1,352
1,714
2,580
3,000
3,308
3,351
3,287
1,793
1,285
703
37,492
35,565
34,804
37,556
35,333
34,513
-6 4
232
291
390
147
106
13
34,633
34,748
35,209
34,774
34,515
34,632
35,129
34,605
118
116
80
169
37.239
36,737
37,086
36,946
36,918
36,628
37,004
36,872
37,533
36,601
37,415
36,456
36,819
Total
Sea
sonal
Borrow
ings
Borrow
ings
Other
Excess
rowigs
5
1,188
1,303
418
232
3
4
46
29
8
23
100
67
40
92
8
15
18
7
1
13
85
27
4
8
50
90
6
42
-3 5
321
28
42
301
74
13
43
55
28
-4 2
28
264
435
21
19
-2 0
-2 6
45
-5 8
133
-4 9
-8
132
113
114
772
1,303
1,457
1,464
1,662
502
257
80
-6 1
69
29
-8
19
6
20
-1 8
38
5
65
41
20
51
70
23
17
36
14
18
43
-5 8
-4
26
-1 2
78
-7 7
36
90
39
485
572
849
7
-1 1 9
31
-3 8
156
37
22
-1 6
17
9
16
10
10
-9 1
41
-3 0
131
71
45
912
983
1,483
1,713
19
19
35
43
-8 1
41
-4 1
10
123
11
333
31
13
-8
-3
40
11
66
15
21
1
-8 2
-3 6
-1 6
414
399
456
600
321
109
82
74
3,906
3,084
2,921
3,531
152
-6 6
127
-1 5 0
80
1,729
1,567
1,517
1,782
40
-3 5
15
12
19
20
16
10
171
-1 1 0
90
-9 3
,033
134
141
37,077
36,656
37,088
36,615
36,576
456
-5 5
327
-1 5 9
243
3,218
2,245
1,744
1,322
1,638
i43
132
108
105
67
-2 6
41
-1 0 1
109
1,756
1,245
219
148
96
9
-2 0
27
-1 2
-9
17
10
135
2
11
222
-1 2 7
99
-1 2 2
42
913
654
606
663
801
36,995
36,479
36,812
36,769
36,672
36,335
36,785
36,459
323
144
27
310
1,125
1,097
1,367
1,479
78
70
64
63
54
-1 5
-1 6
69
68
188
465
243
32
-2 9
8
27
30
29
105
40
-8 7
87
632
399
378
422
36,961
36,293
36,762
36,845
36,678
36,452
36,545
36,416
283
-1 5 9
217
429
1,070
648
818
662
51
35
31
29
141
-1 7 3
59
137
226
73
60
72
4
-3 6
23
52
26
54
-1 6
-5 0
-3 9
89
394
268
287
257
37,588
37,312
38,207
38,265
37.240
37,011
37,175
38,249
38,079
37,066
577
137
-4 2
186
174
561
311
609
594
142
24
18
-8
55
-1 3 0
29
71
83
36
317
328
61
-2 7
1
1
-1 3
69
223
-2 6
-8 9
45
-2 4
260
168
115
136
109
36,974
36,029
35,118
34,606
36,579
35,970
34,960
34,447
395
59
158
159
98
90
229
180
11
10
11
10
6
140
-1 5
33
-2 0
-2 2
29
39
84
-5
-1 8
35
69
69
70
34,795
34,482
34,510
34,833
34,386
34,252
34,490
34,680
409
230
70
60
167
155
9
7
117
122
-9 6
21
4
15
-3 7
41
44
90
—20
10
-5 5
60
41
43
44
20
153
41
32
50
102
130
149
165
139
117
67
32
10
132
121
12
12
10
6
7
c ending Nov. 15, 1972, includes $450 million of
('hich F.R. Banks are allowed to waive penalties
connection with bank adaptation to Regulation J
v. 9, 1972. Beginning 1973, allowable deficiencies
with first statement week o f quarter): Q l, $279
n; Q3, $112 million; Q4, $84 million. Beginning
Q2, $58 million. Transition period ended after
>r weeks for which figures are preliminary, figures
idd to the total because adjusted data by class are
[972, designation o f banks as reserve city banks
133
-3 7
88
8
80
180
847
933
,004
816
686
448
282
731
648
868
86
for reserve-requirement purposes has been
demand deposits of more than $400 million)
for July 1972, p. 626. Categories shown here
parallel the previous “Reserve city” and “Cou
(hence the series are continuous over time).
(net
lletin
her”
ively
N ote.—Monthly and weekly data are ave
the month or week, respectively.
Borrowings at F.R. Banks: Based on closin
Effective Apr. 19, 1963, the Board’s Regul.
ing by F.R. Banks, was revised to assist smi
the seasonal borrowing needs o f their commi
ithin
lend-
APRIL 1975 □ MONEY MARKET BANKS
A 5
BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS
(In m illio n s o f d o lla rs, e x c ep t a s n o te d )
Basic reserve position
Interbank Federal funds transactions
N e tReporting banks
and
week ending—
Excess
Bor
re
serves 1 rowings
at F.R.
Banks
Gross transactions
Per cent
Surplus
of
or
avg.
deficit required
reserves
Pur
chases
14,481
16,260
16,440
15,742
-14,305
-16,213
-16,623
-15,826
20,952
22,136
23,568
21,864
6,470
5,876
7,128
15,962
18,903
16,302
14,639
-15,834
-18,684
-16,446
-14,688
98.2
116.0
90.8
22,134
24,585
21,491
21,345
5,708
7,172
6,305
5,825
-5 ,6 5 2
-7 ,1 3 8
- 6 ,4 3 9
-5 ,8 6 6
77.5
100.3
92.1
88.9
6,080
7,566
5,425
4,678
-6 ,0 0 6
- 7 ,3 8 7
- 5 ,5 4 8
- 4 ,6 6 4
Net
inter
bank
Federal
funds
trans.
Sales
Related transactions with
U.S. Govt, securities dealers
Net transactions
Total
two-way
trans
actions2
Pur
chases
o f net
buying
banks
Sales
o f net
selling
banks
Loans
to
dealers3
Bor
row
ings
from
dealers4
Net
loans
Total—46 banks
1975—Feb.
Mar.
5 ..........
12..........
19..........
26..........
177
52
—41
5 ..........
12..........
19..........
26..........
128
225
-3 8
29
-1 0
1
5
142
74
6
106
78
82.2
94.9
6 ,1 2 2
5,631
5,155
5,949
5,204
15,321
16,982
17,618
16,661
839
722
1,179
918
2,800
3,635
2,727
2,977
6,172
5,682
5,189
6,706
5,203
5,337
4,708
5,373
16,931
19,248
16,782
15,972
969
345
480
1,333
3,120
4,717
4,614
3,233
765
824
608
710
2,355
3,893
4,006
2,523
6,985
7,883
7,697
6,894
1,277
711
1,392
1 ,069
1,277
710
1,393
1,069
5,708
7,172
6,305
5,825
1,433
1,551
1,331
1,579
473
610
610
541
960
942
721
1,038
9 0.0
109.2
81.6
69.7
6,867
8,379
6,395
6,170
786
813
971
1,492
786
814
874
1,363
6,081
7,566
5,522
4,807
97
129
1,466
2,123
1,958
1,650
462
555
410
342
1,004
1,568
1,548
1,308
1 0 0 .2
98.2
1 0 1 .1
809
1 ,0 0 0
932
878
1,991
2,635
1,795
2 ,1 0 0
8 in New York City
1975—Feb.
Mar.
5 ..........
12..........
19..........
26..........
5 ..........
12..........
19..........
26..........
56
34
1
135
-4 1
74
178
-3 5
20
38 outside
New York City
1975—Feb.
Mar.
5 ..........
12..........
19..........
26..........
19
-4 2
30
8,773 -8 ,6 5 3
9,088 -9 ,0 7 4
10,135 -1 0 ,1 8 4
9,917 -9 ,9 6 1
85.6
91.1
106.1
104.7
13,967
13,254
15,870
14,971
5,193
5,166
5,736
5,053
4,354
4,444
4,557
4,135
9,613
9,809
11,314
10,836
839
722
1,179
918
1,368
2,084
1,396
1,398
336
391
322
336
1,031
1,694
1,074
1,062
5 ..........
12..........
19..........
2 6 ......
54
47
-3
9
9,882 - 9 ,8 2 8
11,338 -1 1 ,2 9 7
10,877 -1 0 ,8 9 9
9,961 -1 0 ,0 2 4
104.0
120.9
115.1
105.6
15,267
16,206
15,095
15,174
5,385
4,868
4,218
5,213
4,417
4,524
3,835
4,009
10,850
11,682
11,261
11,165
969
345
384
1,204
1,654
2,593
2,656
1,583
304
269
198
368
1,351
2,325
2,458
1,215
39
3,727
3,500
4,742
3,978
-3 ,6 9 3
-3 ,4 9 7
-4 ,7 6 7
-4 ,0 0 2
193.3
183.4
261.9
223.6
4,573
4,264
5,639
4,781
846
765
897
805
846
765
897
803
3,727
3,500
4,742
3,978
354
304
300
254
354
304
300
254
43
3,877
4,541
4,065
3,800
-3 ,8 6 6
-4 ,5 0 7
-4 ,0 8 9
-3 ,8 3 2
217.5
257.7
227.5
218.5
4,712
5,303
4,698
4,502
835
763
633
702
835
763
633
702
3,877
4,541
4,065
3,800
280
396
519
354
280
396
519
354
121
5 in City of Chicago
1975—Feb.
5 ..........
12..........
19..........
26..........
Mar.
5 ..........
12..........
19..........
26..........
33 others
1975—Feb.
5 ..........
12..........
19..........
26..........
87
16
-1 6
15
5,046
5,589
5,393
5,939
-4 ,9 6 0
-5 ,5 7 7
-5 ,4 1 6
-5 ,9 5 9
60.5
69.2
69.7
77.2
9,394
9,990
10,232
10,190
4,348
4,401
4,838
4,251
3,508
3,680
3,660
3,352
5,885
6,310
6,572
6,857
839
722
1,179
918
1,013
1,780
1,096
1,144
336
391
322
336
677
1,390
774
Mar.
5 ..........
12..........
19..........
26..........
43
14
6,005
6,797
6,812
6,161
-5 ,9 6 2
-6 ,7 8 9
-6 ,8 1 0
-6 ,1 9 2
77.7
89.4
88.7
80.0
10,555
10,903
10,397
10,672
4,551
4,106
3,585
4,511
3,582
3,761
3,202
3,307
6,973
7,142
7,196
7,365
969
345
384
1,204
1,375
2,198
2,137
1,228
304
269
198
368
1,071
1,929
1,940
861
21
- 1
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 ote.—Weekly averages o f daily figures. For description o f series
and back data, see Aug. 1964 B ulletin, pp. 944-74.
A 6
F.R. BANK INTEREST RATES □ APRIL 1975
CURRENT RATES
(P er cen t per an n u m )
L o a n s to m em b er b a n k s -
Under Sec. 10(b)2
Loans to all others under
last par. Sec. 134
Under Secs. 13 and 13a1
Federal Reserve
Bank
B oston.............
New Y o rk .. . .
Philadelphia. .
Cleveland
Richmond
Atlanta...........
Chicago..........
St. L ouis........
Minneapolis. .
Kansas C ity. .
D allas............,
San Francisco'
Regular rate
Special rate 3
Rate on
3/31/75
Effective
date
Previous
rate
Rate on
3/31/75
Effective
date
Previous
rate
6V4
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75
63^
6%
634
634
634
634
634
634
634
634
634
634
634
63/4
634
63/4
634
634
634
63/4
634
634
634
63/4
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75
714
71/4
71/4
71/4
714
71/4
71/4
71/4
1V4
71/4
714
61/4
6V4
6 V4
6V4
6*4
6 V4
61/4
6*4
61/4
6 V4
61/4
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.
2 Advances secured to the satisfaction o f the F.R. Bank. Advances
secured by mortgages on 1- to 4-family residential property are made at
the Section 13 rate.
Rate on
3/31/75
1V4
Effective
date 3
Previous
rate
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75
81/2
81/2
81/2
81/2
81/2
Rate on
3/31/75
81/2
81/2
81/2
81/2
81/2
81/2
81/2
Effective
date
Previous
rate
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/10/75
3/14/75
3/14/75
3/10/75
3/10/75
3/14/75
3/10/75
91/2
91/2
91/2
91/2
91/2
91/2
91/2
91/2
9i/2
91/2
91/2
91/2
3 Applicable to special advances described in Section 201.2(e)(2) of
Regulation A.
4 Advances to individuals, partnerships, or corporations other than
member banks secured by direct obligations of, or obligations fully
guaranteed as to principal and interest by, the U.S. Govt, or any
agency thereof.
SUMMARY OF EARLIER CHANGES
(Per cent per annum)
Effective
date
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
In effect Dec. 31, 1955........
21/2
21/2
1956—Apr. 13......................
20......................
Aug. 24......................
31......................
21/2-3
23/4-3
234-3
3
234
23/4
3
3
9 ......................
23......................
Nov. 15......................
Dec. 2 ......................
3 -31/2
31/2
3 -31/2
3
3
31/2
3
3
1958—Jan. 22......................
24......................
Mar. 7 ......................
13......................
21......................
Apr. 18......................
May 9 ......................
Aug. 15......................
234-3
234-3
214-3
214-234
214
1 M -2 14
IV4
m -2
m -2
2
2 - 21/2
21/2
3
234
214
21/4
214
13A
iy 4
iy 4
21/2-3
3
3 -31/2
31/2
31/2-4
4
31/2-4
31/2-4
31/2
3 -31/2
3
3 - 31/2
31/2
3
3
31/2
31/2
4
4
4
31/2
31/2
3
3
1957—Aug.
23.....................
Oct. 24......................
Nov. 7 .....................
1959—Mar.
May
June
Sept.
1960—June
Aug.
Sept.
1963—July
6 .....................
16.....................
29......................
12.....................
11.....................
18.....................
3 .....................
10.....................
14......................
12.....................
9 .....................
17.....................
26.....................
2
2
2
21/2
31/2
31/2
Effective
date
F.R.
Bank
of
N .Y.
31/2-4
4
4
1964— Nov. 24.
30.
1965—Dec.
4
6,
13.
4
7.
14.
Nov. 20.
27,
4
1967—Apr.
1968—Mar. 15,
22
,
Apr. 19,
26,
Aug. 16,
30,
Dec. 18
20
1969—Apr.
,
4
8
- 4 i/2
41/2
4
4
- 41/2
-4 i/2
41/2
41/2-5
5
-51/2
51/2
514-51/2
514
51/4-51/2
51/2
/
51 2 - 6
6
1970—Nov. 11
13
16
Dec. 1
4
11
534-6
534-6
1971—Jan.
514-5ft
8
15
19
22
29
Feb. 13
19
July 16
23
N o te.—Rates under Secs. 13 and 13a (as described in table and notes
above). For data before 1956, see Banking and Monetary Statistics, 1943,
pp. 439-42, and Supplement to Section 12, p. 31.
Range
(or level)—
All F.R.
Banks
534
51/2-53/4
51/2-53/4
51/2
5
5
51/4
-514
- 51/4
5
434-5
434
434-5
5
41/2
41/2
4
4
41/2
41/2
4%
5
51/2
51/2
51/2
51/4
51/2
51/2
6
6
6
534
534
53/4
51/2
51/2
Range
(or level)—
All F.R.
Banks
F.R.
Bank
of
N.Y.
434-5
434
41/2-434
41/ 2-434
41/2
5
434
434
41/2
41/2
5
-51/2
51/2
51/2-534
534
534 - 6
6
6 - 61/2
61/2
7
7 - 71/2
71/2
5
5Vi
51/2
51/2
534
6
6
6%
61/2
7
71/2
71/2
1974—Apr. 25.....................
3 0 ....................
Dec. 9 .....................
16.....................
m -s
8
734-8
73/4
8
8
734
734
1975—Jan.
71/4-734
714-734
71/4
634-71/4
634
614-634
61/4
73/4
71/4
71/4
634
634
614
614
614
614
Effective
date
1971— Nov. 11.....................
19.....................
Dec.
24.....................
1973—Jan.
Feb. 26.....................
Mar. 2 .....................
Apr. 23.....................
May 4 .....................
18.....................
June 11.....................
15.....................
July 2 .....................
Aug.
23.....................
6 .....................
10.....................
Feb. 5 .....................
7 .....................
51/4
Mar. 10....................
14.....................
51/4
51/4
5 ■ In effect, Mar. 3 1 ,1 9 7 5 ....
5
5
434
5
5
5
APRIL 1975 □ RESERVE REQUIREMENTS
A 7
RESERVE REQUIREMENTS ON DEPOSITS OF MEMBER BANKS
(D e p o s it in terv a ls are in m illio n s o f d o lla rs. R eq u irem en ts are in per c e n t o f d e p o sits.)
Net demand 2
Effective
date 1
Time 3
(all classes o f banks)
Reserve city
Other
Other time
Savings
0-5
In effect
Jan. 1, 1963...........
1966—July 14,21
Sept. 8,15
1967—Mar. 2 .............
..........
1968—Jan. 1 1 ,1 8 ....
1969—Apr. 17...........
1970—Oct. 1...............
Over 5
0-5
Over 5
0-5
4
12
161/2
Mar. 16
161/2
17
12
m /2
17
171/2
Over 5
4
4
31/2
3
31/2
3
5
6
121/2
13
5
Beginning Nov. 9, 1972
Net demand
2,4
Time 3
Other time
Effective
date
0-2
2 -10
10 -10 0
100-400
Over
400
Savings
Over 5
5, maturing in—
0-5
30-179
days
1972—Nov. 9 .............
Nov. 16...........
8
I973—j uiy 19 .............
10
12
IO1/2
12 ^
131/2
18
6 I6I/2
13
1974—Dec 12...........
171/2
7 3
71/2
10
12
13
I6I/2
In eff ect Mar. 31,1975
71/2
10
12
13
I6I/2
3
Present legal lim its:
Net demand deposits, reserve city banks...........
Net demand deposits, other banks....................
Time deposits..........................................................
1 When two dates are shown, the first applies to the change at reserve
city banks and the second to the change at country banks. For changes
prior to 1963 see Board’s Annual Reports.
2 (a) Demand deposits subject to reserve requirements are gross de
mand deposits minus cash items in process o f collection and demand
balances due from domestic banks.
(b) Requirement 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
computed on the basis o f net balances due from domestic offices to their
foreign branches and against foreign branch loans to U.S. residents.
Since June 21, 1973, loans aggregating $100,000 or less to any U.S. resident
have been excluded from computations, as have total loans o f a bank to
U.S. residents if not exceeding $1 million. Regulation D imposes a similar
reserve requirement on borrowings from foreign banks by domestic offices
o f a member bank. The reserve percentage applicable to each of these
classifications is 8 per cent. The requirement 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 amounts were
exempted in the computation of the requirements, but effective Mar. 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
7 5
7 3
171/2
I975—Feb 1 3 ...........
180 days
and over
3
6
3
6
3
Minimum
Maximum
10
7
3
22
14
10
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
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 o f banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see Regulation D and appropriate sup
plements and amendments.
5 A marginal reserve requirement was in effect between June 21, 1973,
and Dec. 11, 1974, against increases in the aggregate o f the following types
o f obligations: (a) outstanding time deposits o f $100,000 or more, (b)
outstanding funds obtained by the bank through issuance by a bank’s
affiliate o f obligations subject to existing reserve requirements on time
deposits, and (c) beginning July 12, 1973, funds from sales o f finance bills.
The requirement applied to balances above a specified base, but was not
applicable to banks having obligations o f these types aggregating less
than $10 million. For details, including percentages and maturity classifi
cations, see “Announcements” in B ulletins for May, July, Sept., and
Dec. 1973 and Sept. and Nov. 1974.
6 The 16 Vi per cent requirement applied for one week, only to former
reserve city banks. For other banks, the 13 per cent requirement was
continued in this deposit interval.
7 See columns above for earliest effective date o f this rate.
N ote.—Required reserves must be held in the form o f deposits with
F.R. Banks or vault cash.
A 8
MAXIMUM INTEREST RATES; MARGIN REQUIREMENTS □ APRIL 1975
MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS
(Per cent per annum)
R a te s J uly 2 0 , 1966— June 3 0 , 1973
R a te s b e g in n in g July 1, 1973
Effective date
Type and size
o f deposit
July 20,
1966
Savings deposits...............
Other time deposits:1
Multiple maturity *.2
30-89 days...........
90 days to 1 year.
1-2 years..............
2 years or m o re...
Single-maturity:
Less than $100,000:
30 days to 1 year.
1-2 years.............
2 years or m ore. .,
$100,000 or more:
30-59 days........... .
60-89 days...........
90-179 days.........
180 days to 1 year
1 year or more
Sept. 26,
1966
Effective date
Apr. 19,
1968
Jan. 21,
1970
4
4*4
5
5*4
5
5%
5
5*4
5Vi
5%
(3)
(3)
(3)
(3)
51/2
534
51/z
5*4
6
Wa
6*4
6*4
6 3A
7
7*4
per
per
Per
per
per
centl
cent j
cent I
cent [
cent]
July 1,
1973
Savings deposits.......................
Other time deposits (multipleand single-maturity):1, 2
Less than $100,000:
30-89 days........................
90 days to 1 year.............
1-2 Vi years.......................
2 *4 years or m ore...........
Minimum denomination
o f $1,000:
4-6 years.......................
6 years or m ore...........
Governmental units........
$100,000 or m ore...............
Nov. 1,
1973
Nov. 27,
1974
June 24, 1970
May 16, 1973
Rates on multiple-maturity time deposits in denominations o f $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 certificates
maturing in 4 years or more with minimum denominations o f $1,000.
The amount o f such certificates that a bank could issue was limited to
5 per cent o f its total time and savings deposits. Sales in excess of that
5
5
5
6
6
5
6
6*4
6*4
6*4
6*4
(4)
(5)
m
m
(5)
7*4
7*4
51/2
(3)
5%
(3)
For credit extended under Regulations T (brokers and dealers),
U (banks), and G (others than brokers, dealers, or banks)
On margin stocks
1937—Nov.
1945— Feb.
July
1946—Jan.
1947— Feb.
1949— Mar.
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
Ending
date
1945—Feb.
July
1946—Jan.
1947—Jan.
1949— Mar.
1951—Jan.
1953— Feb.
1955—Jan.
Apr.
1958—Jan.
Aug.
Oct.
1960—July
1962—July
1963—Nov.
1968—Mar.
1968—Mar. 11
June
1970—May
June
8
1970—May
6
1971—Dec.
1971—Dec.
6
1972—Nov.
1972—Nov. 24
1974—Jan.
Effective Jan,. 3, 1974.......................
On convertible bonds
On short sales
(T)
U
4 ...................
4 ...................
40
50
75
50
50
75
3 1 ...................
2 9 ...................
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
1 9 ...................
3 ...................
2 2 ...................
15...................
4 ...................
15...................
2 7 ...................
9 ...................
10...................
7 ...................
5 ...................
3 ...................
70
80
65
55
65
50
50
60
50
50
50
50
70
80
65
55
65
50
N ote.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount o f 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 market 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 o f Governors effective
Mar. 11, 1968.
(3)
5
5*4
6
7*4
734
(3)
N ote.— Maximum rates that may be paid by member banks are estab
lished by the Board o f Governors under provisions o f Regulation Q;
however, a member bank may not pay a rate in excess o f the maximum
rate payable by State banks or trust companies on like deposits under
the laws o f the State in which the member bank is located. Beginning
Feb. 1, 1936, maximum rates that may be paid by nonmember insured
commercial banks, as established by the FDIC, have been the same as
those in effect for member banks.
For previous changes, see earlier issues o f the Bulletin.
(Per cent o f market value)
Beginning
date
%
amount were subject to the 6*4 per cent ceiling that applies to time de
posits maturing in 2*4 years or more.
Effective Nov. 1, 1973, a ceiling rate o f 7*4 per cent was imposed on
certificates maturing in 4 years or more with minimum denominations
o f $1,000. There is no limitation on the amount o f these certificates that
banks may issue.
5 Prior to Nov. 27, 1974, no distinction was made between the time
deposits o f governmental units and of other holders, insofar as Regula
tion Q ceilings on rates payable were concerned. Effective Nov. 27, 1974,
governmental units were permitted to hold savings deposits and could
receive interest rates on time deposits with denominations under $100,000
irrespective o f maturity, as high as the maximum rate permitted on such
deposits at any Federally insured depositary institution.
MARGIN REQUIREMENTS
Period
Dec. 23,
1974
(3)
1 For exceptions with respect to certain foreign time deposits, see
B ulletin for Feb. 1968, p. 167.
2 Multiple-maturity time deposits include deposits that are automati
cally renewable at maturity without action by the depositor and deposits
that are payable after written notice o f withdrawal.
3 Maximum 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:
30-59 days
60-89 days
90-179 days
180 days to 1 year
1 year or more
Type and size
o f deposit
APRIL 1975 □ OPEN MARKET ACCOUNT
A 9
TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT
(In m illio n s o f d o lla rs)
Outright transactions in U.S. Govt, securities, by maturity (excluding matched sale-purchase transactions)
Treasury bills1
Others within 1 year2
1-5 years
Over 10 years
5-10 years
Period
Gross Redemp
sales
tions
Gross
pur
chases
11,074
8,896
8,522
15,517
11,660
5,214
3,642
6,467
4,880
5,830
2,160
1,064
2,545
3,405
4,550
391
566
49
410
165
407
June.
July..
Aug..
Sept..
Oct...
N ov..
D e c ..
768
664
1,237
737
614
988
1,652
717
547
1,422
973
1975—Jan...
Feb..
341
357
1970.,
1971.,
1972.,
1973.
1974.
1974— Feb..
Mar..
A pr..
May.
Gross
pur
chases
-3 ,4 8 3
- 6 ,4 6 2
2,933
-1 4 0
-1 ,3 1 4
Gross Exch. or Gross
pur
sales maturity
chases
shifts
5,430
4,672
-1 ,4 0 5
-2 ,0 2 8
-6 9 7
-1,845
685
-2,094
895
1,675
30
109
172
26
34
53
2,563
112
Gross Exch. or Gross
sales maturity
pur
shifts
chases
1,338
789
579
797
687
273
426
786
1,063
107
22
-2 0 0
148
85
-1,623
126
92
123
1,757
-1 2 6
2,437
305
129
-2,8 3 6
600
900
945
460
Matched
sale-purchase
transactions
(U.S. Govt,
securities)
Period
Redemp
tions
Gross
sales
Gross
pur
chases
Gross
pur
chases
Net
change
in U.S.
Govt,
securi
ties
5,214
3,642
6,467
4,880
5,830
2,160
2,019
2,862
4,592
4,682
12,177
16,205
23,319
45,780
64,229
12,177
16,205
23,319
45,780
62,801
33,859
44,741
31,103
74,755
71,333
33,859
43,519
32,228
74,795
70,947
4,988
8,076
-3 1 2
8,610
1,984
1974— Feb..
Mar..
Apr..
May.
June.
July.
Aug..,
Sept..
O ct..,
Nov..
D ec..
798
854
1,409
944
790
1,113
1,652
893
547
1,765
1,254
391
566
49
410
165
407
2,393
702
2,393
702
4,265
5,124
8,498
8,648
6,667
4,965
2,096
3,551
4,618
11,895
-3
1,246
524
1,388
-9 1 1
-2,381
3,028
-9 6
-1,684
1,647
-4 9 8
1975—Jan..
Feb..,
746
673
8,748
10,305
844
-2 5 8
0
1
2
3
4
6
4.586
4,580
2.587
9,061
9,420
12,574
6,880
8,855
’ i i *287
9,782
12,516
6,404
7,962
4,265
6,248
8,069
9,192
6,124
4,269
2,096
3,551
4,618
6,990
11,470
600
900
9,237
7,167
10,367
6,634
9,260
11,267
100
954
204
211
850
565
1 ,1 1 0
273
426
786
1,063
238
945
460
4,586
4,580
1 Before Nov. 1973 B ulletin, 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; Nov. 1974, 131; Mar. 1975, 1,560.
6 ,1 2 1
35
1,940
-130
53
37
-4 6 5
61
113
200
150
249
Bankers
acceptances,
net
Federal agency obligations
Gross
sales
12,362
12,515
10,142
18,121
13,537
197
197
197
197
197
150
250
87
205
100
200
Repurchase
agreements
(U.S. Govt,
securities)
-1 0 2
200
1,057
14
93
311
167
129
196
-2,663
48
27
6
Gross Exch. or
sales maturity
shifts
56
-2 ,8 6 7
850
565
1 ,1 1 0
249
933
539
500
434
-9 2 2
204
211
Gross
sales
Exch.,
Gross maturity
sales shifts, or
redemp
tions
99
1,036
125
1,396
450
100
954
Total outright1
Gross
pur
chases
Gross
pur
chases
Outright
Gross
pur
chases
Sales or
redemp
tions
485
1,197
865
3,087
120
170
360
201
309
761
238
207
Repur
chase
agree
ments,
net
Net
change 3
- 6
22
101
370
239
322
29
469
46
48
48
15
72
35
3
16
185
33
424
-372
-270
Repur
chase
agree
ments
Out
right
-9
- 2
511
4,982
181
-1 4 5
-3 6
420
1
4
8
16
121
59
40
-1 0 0
331
360
369
142
174
188
376
-409
246
103
-1 2
223
— 89
142
-7 0
-2 0 7
187
—185
218
201
-1 3 6
39
8 ,8 6 6
272
9,227
6,149
72
1,780
789
2,155
-1 ,1 1 5
-2 ,0 1 1
3,322
322
-1 ,9 7 0
2,739
393
387
309
3 Net change in U.S. Govt, securities, Federal agency obligations, and
bankers’ acceptances.
N ote.—Sales, redemptions, and negative figures reduce System hold
ings; all other figures increase such holdings. Details may not add to
totals because o f rounding.
CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS
(In millions o f U.S. dollar equivalent)
Total
Pounds
sterling
1970............................................
1971............................................
1972............................................
1973 ..........................................
257
18
192
4
154
3
*
*
1974— Jan..................................
Feb..................................
Mar . . .
Apr .
M ay. .
Jone..............................
July..................
A u g ................................
Sept.............................
Oct . . . .
N ov............................
D ec.................................
1
32
6
6
63
90
8
220
242
190
40
2
*
*
*
*
*
«
*
*
*
*
*
*
End o f period
Belgian
francs
*
3
*
20
5
5
5
5
1
*
*
1
*
*
Canadian
dollars
French
francs
German
marks
Italian
lire
Japanese
yen
*
*
*
*
98
2
' 164
*
1
1
1
1
*
*
*
*
*
*
*
*
*
*
#
*
*
10
*
*
57
84
6
39
61
8
38
1
1
1
1
1
1
1
1
1
1
1
1
1
Mexico
pesos
Nether
lands
guilders
*
20
180
180
180
Swiss
francs
4
8
6
3
A 10
FEDERAL RESERVE BANKS □ APRIL 1975
CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS
(In m illio n s o f d o lla rs)
W e d n esd a y
I te m
E n d o f m o n th
1975
Mar. 26
1974
1975
Mar. 19
Mar. 12
11,620
400
11,620
400
11,620
400
11,620
400
11,621
400
11 ,620
400
11,621
400
351
349
352
353
346
352
360
280
814
854
87
58
834
59
77
1,820
676
657
665
669
324
73
223
Mar. 31
Feb. 28
Mar. 31
Assets
Gold certificate account....................................
Special Drawing Rights certificate account.
Cash........................................................... .
Loans:
Member bank borrowings...............
Other.....................................................
Acceptances:
Bought outright..................................
Held under repurchase agreements.
Federal agency obligations:
Bought outright...................................
Held under repurchase agreements.
665
363
222
11,460
400
4,981
463
4,981
4,981
4,983
4,607
258
5,190
4,983
347
2,123
185
36,052
34,944
30,572
1,043
34,269
35,484
36,087
35,139
36,400
41,284
3,674
40,495
3,535
40,495
3,535
40,495
3,535
40,495
3,535
41 ,583
3,748
40,495
3,535
38,956
3,004
181,010
1,624
178,974
175,645
178,299
179,514
2,507
181,418
179,169
1,917
178,360
1,123
Total U.S. Govt, securities.
82,634
78,974
75,645
78,299
82,021
81,418
81,086
79,483
Total loans and securities.....................
Cash items in process o f collection. . .
Bank premises.........................................
Operating equipment3............................
Other assets:
Denominated in foreign currencies.
All other...............................................
89,920
6,584
276
85,464
7,844
274
81,380
7,478
273
84,016
8,054
272
88,599
7,037
271
87,332
*5,190
275
87,486
5,638
271
83,907
5,778
227
2
6
2,732
845
U.S. Govt, securities:
Bought outright:
B ills..............................
Certificates—Special.
O ther..
N otes...........................
Bonds......................... .
Total bought outright.......................
Held under repurchase agreements.
Total assets.
2
2
14
2,847
12
12
100
2
2,873
2,885
2,784
2,467
19
2,776
*112,014
108,838
104,400
107,599
110,743
Pi 07,966
108,510
102,903
2
Liabilities
F.R. notes...............................................
Deposits:
Member bank reserves....................
U.S. Treasury—General account.
Foreign...............................................
Other:
All other2 ......................................
69,301
69,278
69,337
68,747
68,302
69,270
68,078
62,900
*30,320
3,554
428
28,396
1,795
321
25,695
28,308
956
277
30,223
3,187
271
*26,740
4,269
402
28,644
2,884
409
29,838
1,373
366
792
870
989
867
851
709
901
673
Total deposits.
*35,094
31,382
26,998
30,408
34,532
*32,120
32,838
4,539
1,056
5,207
1,048
5,172
1,073
5,493
1,072
4,680
1,040
3,456
1 ,0 1 2
4,268
1,098
4,491
1,118
*109,990
106,915
102,580
105,720
108,554
*105,858
106,282
100,759
Capital paid in ...................................................................
Surplus.................................................................................
Other capital accounts.....................................................
902
897
225
902
897
124
899
897
24
897
897
85
898
897
394
903
897
308
898
897
433
872
844
428
Total liabilities and capital accounts............................
*112,014
108,838
104,400
107,599
110,743
*107,966
108,510
102,903
Deferred availability cash items............
Other liabilities and accrued dividends.
Total liabilities.
*
314
Capital accounts
Contingent liability on acceptances purchased for
foreign correspondents.................................................
Marketable U.S. Govt, securities held in custody for
foreign and international accounts..........................
46
68
91
113
149
37
130
684
38,033
38,120
38,445
38,657
'38,126
36,824
r38,849
26,635
Federal Reserve Notes—Federal Reserve Agents* Accounts
74,395
74,450
74,326
74,278
74,233
74,473
74,245
67,218
3,809
138
3,809
138
3,457
93
425
72,162
3,457
93
425
72,162
3,809
138
72,277
3,457
93
425
72,162
2,305
72,277
3,712
116
425
71,652
66,840
76,224
75,905
76,137
76,137
76,224
76,137
69,145
F.R. notes outstanding (issued to Bank)..........
Collateral held against notes outstanding:
Gold certificate account...................................
Special Drawing Rights certificate account.
Acceptances.........................................................
U.S. Govt, securities.........................................
72,277
Total collateral.
76,224
1 See note 2 on p A-2.
2 See note 6 on page A-2.
3 Provides for capitalization o f operating equipment costing over
$10,000. These amounts were previously charged to current expense.
APRIL 1975 □ FEDERAL RESERVE BANKS; BANK DEBITS
A 11
MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
(In millions o f dollars)
Wednesday
End of month
1975
Item
Mar. 5
F e b .26
Mar. 31
F e b .28
Mar. 31
85
74
11
58
52
6
834
833
1
59
58
1
77
74
3
1 ,821
1,799
22
655
129
405
121
667
123
421
123
676
128
109
439
879
358
419
102
665
111
139
415
993
470
425
98
296
253
43
82,634
7,128
20,414
21,000
21,094
10,445
2,553
78,974
4,582
20,007
21,203
20,733
10,035
2,414
75,645
2,697
18,765
21,001
20,733
10,035
2,414
78,299
3,374
21,305
20,438
20,733
10,035
2,414
82,021
7,330
20,547
20,962
20,733
10,035
2,414
81,418
3,771
22,146
21,102
21,288
10,485
2,626
81,086
4,649
22,196
21,059
20,733
10,035
2,414
79,483
5,298
18,951
23,232
22 344
7,836
1,822
5,444
469
189
643
2,578
1,045
520
4,981
6
189
643
2,578
1 ,045
520
4,981
4,983
120
159
618
2,541
1,025
520
4,865
423
122
541
2,374
904
501
5,190
6
189
643
2,580
1,211
561
5,330
514
122
608
2,541
1,025
520
2,308
185
135
275
821
608
284
Mar. 26
Mar. 19
814
813
1
854
854
Acceptances—T otal.............................................................
Withm 15 days..................................................................
16—90 days..........................................................................
91 days to 1 year..............................................................
1,028
475
406
147
Within 15 days1................................................................
16—90 days..........................................................................
91 days to 1 year..............................................................
1—5 years............................................................................
5—10 years..........................................................................
Over 10 years....................................................................
Federal agency obligations—T otal..................................
Within 15 days1...............................................................
16—90 days..........................................................................
91 days to 1 year..............................................................
1—5 years............................................................................
5—10 years..........................................................................
Over 10 years....................................................................
16—90 days.........................................................................
91 days to 1 year..............................................................
1974
1975
Mar. 12
195
643
2,578
1 ,045
520
1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity o f the agreements.
BANK DEBITS AND DEPOSIT TURNOVER
(Seasonally adjusted annual rates)
Debits to demand deposit accounts1
(billions o f dollars)
Period
Turnover o f demand deposits
N.Y.
6 others2
Total 232
SMSA’s
(excl.
N.Y.)
1974—Feb.................................. 19,813.7
Mar................................. 20,166.9
Apr.................................. 20,062.3
M ay................................ 20,564.7
June..............................
20,457.3
July................................. 20,899.6
Aug................................. 21,478.3
Sept................................. 22,017.5
22,348.8
N ov................................. 22,918.7
D ec.................................. 22,192.4
8,896.2
8,914.4
8,637.9
8,970.1
9 ,065.7
9 ,1 4 0 .4
9 ,2 4 0 .8
9 ,9 7 0 .8
10,271.1
10,538.9
9,9 3 1 .8
4,582.1
4 ,7 1 8 .0
4 ,747.6
4,820.8
4,7 6 8 .0
4,892.1
5,1 7 3 .0
5,092.1
5,0 8 4 .7
5,1 6 0 .2
5,1 5 2 .7
10,917.5
11,252.5
11,424.3
11,594.6
11,391.6
11,759.2
12,237.5
12,046.7
12,077.6
12,379.8
12,260.6
6,335.4
6,534.6
6,676.7
6,773.8
6,62 3 .6
6,867.1
7,064.5
6,954.7
6,9 9 3 .0
7,219.6
7,107.9
118.0
118.3
115.4
117.1
116.9
119.8
123.4
125.1
127.0
131.8
128.0
294.2
292.5
274.6
275.3
279.9
282.1
286.4
310.5
316.8
324.6
312.8
119.9
120.8
119.7
122.3
120.0
123.5
132.0
127.5
127.3
131.5
131.8
79.3
80.3
80.2
81.1
79.8
82.8
86.3
83.7
84.1
87.5
86.6
63.7
64.7
65.0
65.4
64.3
67.0
68.8
66.9
67.5
70.6
69.3
1975—Jan.................................. r21,855.3
Feb.................................. 22,954.1
10,157.8
10,918.0
*■4,868.4 '•11,697.5
12,036.1
4,993.5
'6,829.1
7 ,042.6
127.2
133.3
321.8
343.2
125.9
127.4
83.4
85.8
67.3
69.6
Leading SMSA’s
Total
233
SMSA’s
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
226
other
SMSA’s
Total
233
SMSA’s
N.Y.
6 others2
Total 232
SMSA’s
(excl.
N.Y.)
226
other
SMSA’s
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 B ulletin.
A 12
MONEY STOCK □ APRIL 1975
MEASURES OF THE MONEY STOCK
(In b illio n s o f d o lla rs)
Not seasonally adjusted
Seasonally adjusted
Period
Mi
M2
m5
Mi
M zr
M2
Mi
M zr
Mi
M&
Composition of measures is described in the Note below.
1972—D ec.................................
1973—D ec.................................
255.8
271.5
525.7
572.2
844.9
919.6
569.7
636.0
888.8
983.4
263.0
279.1
530.7
577.3
848.0
922.8
574.9
641.3
892.2
986.8
1974—Feb..................................
Mar.................................
Apr..................................
M ay................................
June................................
July.................................
Aug.................................
Sept.................................
Oct...................................
N ov.................................
D ec..................................
273.1
275.2
276.6
277.6
280.0
280.5
280.7
281.1
282.2
283.8
284.3
580.9
585.5
589.4
591.6
597.1
599.7
602.2
603.8
608.1
613.0
614.3
932.5
940.0
945.9
948.8
955.9
959.9
963.0
965.5
971.2
978.3
982.5
649.1
653.4
663.3
670.2
678.5
683.3
686.0
688.7
694.3
698.5
704.6
1000.7
1007.9
1019.8
1027.3
1037.2
1043.5
1046.7
1050.3
1057.4
1063.8
1072.8
270.2
272.5
278.2
272.9
278.2
280.1
277.5
279.4
281.7
285.3
292.2
578.5
584.9
593.5
589.7
596.6
599.3
598.7
600.7
606.3
611.1
619.4
930.2
941.1
952.2
948.3
957.4
961.2
958.9
961.2
968.0
974.2
985.8
644.6
651.5
665.3
666.9
676.2
682.1
685.8
689.4
695.1
698.2
709.8
996.3
1007.7
1024.0
1025.5
1037.0
1044.0
1046.0
1049.9
1056.7
1061.2
1076.3
1975—Jan...................................
Feb..................................
282.2
283.8
616.0
621.0
987.5
996.0
708.9
713.2
1080.4
1088.2
289.3
280.8
621.9
618.5
992.9
993.5
714.0
707.9
1085.0
1082.8
N ote.—Composition of the money stock measures is as follows:
Mi: Averages of daily figures for (1) demand deposits of commercial
banks other than domestic interbank and U.S. Govt., less cash items in
process of collection and F.R. float; (2) foreign demand balances at F.R.
Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of
commercial banks.
M^: Averages o f daily figures for M l plus savings deposits, time de
posits open account, and time certificates other than negotiable C D ’s of
$100,000 o f large weekly reporting banks.
M 3: M 2 plus mutual savings bank deposits, savings and loan shares, and
credit union shares (nonbank thrift).
M u M 2 plus large negotiable C D ’s.
A/5: M z plus large negotiable C D ’s.
N.B. Latest monthly and weekly data—including some revisions going
back to 1970—are shown in the Board’s H .6 release for Feb. 20, 1975, and
from the Banking Section, Division o f Research and Statistics. For
general description and other back data, see “Revision of Money Stock
Measures and Member Bank Reserves and Deposits” on pp. 817-27 o f
the Dec. 1974 Bulletin.
COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS
(In billions o f dollars)
Seasonally adjusted
N ot seasonally adjusted
Commercial banks
Period
Cur
ren
cy
Commercial banks
Time and savings
deposits
D e
mand
de
pos
its
CD’s 1
Other
Total
Non
bank
thrift
insti
tu
tions2 r
Demand deposits
Cur
ren
cy
Time and savings
deposits
Total
Mem
ber
D o
mes
tic
nonmem
ber
CD’s 1
Other
Total
Non
U.S.
bank
Govt.
thrift
de
pos
insti
tu
its3
tions2 r
1972—D ec.................
1973—Dec.................
56.9
61.6
198.9
209.9
43.9
63.8
269.9
300.7
313.8
364.5
319.1
347.4
57.9
62.7
205.1
216.4
152.4
157.0
51.4
56.6
44.2
64.0
267.6
298.2
311.8
362.2
317.3
345.6
7 .4
6.3
I974—Feb.................
Mar................
Apr.................
M ay...............
June...............
July................
Aug................
Sept................
Oct..................
N ov................
D ec.................
62.7
63.3
63.9
64.3
64.6
64.8
65.5
65.9
66.5
67.3
r67.8
210.4
211 .9
212.8
213.3
215.4
215.7
215.3
215.3
215.7
216.5
216.6
68.2
68.0
73.9
78.5
81 .3
83.6
83.8
84.8
86.2
85.5
90.3
307.8
310.3
312.7
314.0
317.1
319.2
321.5
322.7
325.9
329.2
330.0
376.0
378.3
386.7
392.5
398.4
402.8
405.2
407.5
412.1
414.7
420.3
351 .7
354.5
356.5
357.1
358.8
360.2
360.7
361.6
363.1
365.3
368.3
61.9
62.7
63.5
64.1
64.8
65.3
65.7
65.8
66.4
67.8
68.9
208.3
209.8
214.7
208.8
213.5
214.8
211.9
213.6
215.3
217.5
223.3
151 .1
152.3
155.8
151.3
153.6
154.4
152.3
153.3
154.4
155.9
160,3
54.6
54.7
56.2
54.8
56.1
56.6
56.3
57.0
57.7
58.4
59.7
66.1
66.7
71 .8
77.2
79.6
82.8
87.1
88.7
88.8
87.1
90.5
308.3
312.4
315.3
316.7
318.3
319.2
321.1
321.3
324.6
325.8
327.2
374.4
379.1
387.1
393.9
397.9
402.0
408.2
410.1
413.3
412.9
417.6
351.7
356.2
358.7
358.7
360.8
361 .9
360.3
360.5
361.7
363.0
366.5
6 .6
6 .4
6 .0
7.6
6.1
5 .4
4 .0
5.5
3.7
3.3
4 .8
1975—Jan..................
Feb.?.............
68.1
68.6
214.1
215.1
92.9
92.2
333.8
337.2
426.7
429.4
371.5
375.0
67.7
67.8
221 .6
213.0
158.7
152.2
59.7
57.6
92.1
89.4
332.7
337.8
424.7
427.1
371.0
375.0
4 .0
3.3
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 of
mutual savings banks, for savings capital at savings and loan associations,
and for credit union shares.
3 At all commercial banks.
See also N ote above.
APRIL 1975 □ BANK RESERVES; BANK CREDIT
A 13
AGGREGATE RESERVES AND MEMBER BANK DEPOSITS
(In b illio n s o f d o lla r s)
Deposits subject to reserve requirements 3
Member bank reserves, S .A .1
S.A.
N on
bor
rowed
Period
Total
Re
quired
Avail
able2
Total
Total member
bank deposits
plus nondeposit
items4
N.S.A.
Demand
Time
and
savings
Private
U.S.
Govt.
5.8
5.6
3.9
2 .2
1971—Dec...
1972—Dec...
1973—Dec...
31.33
31.46
35.16
31.20
30.41
33.87
31.15
31.17
34.86
29.03
29.09
32.97
360.3
402.0
442.2
210.7
242.0
280.0
143.8
154.5
158.2
1974—Feb...
M ar..
Apr...
May..
June..
July..
A ug..
Sept..
Oct...
N o v ..
Dec...
35.12
34.98
35.88
36.52
36.74
37.40
37.27
37.28
36.86
36.87
36.91
33.92
33.66
34.15
33.93
33.73
34.10
33.93
34.00
35.04
35.62
36.18
34.93
34.84
35.70
36.34
36.54
37.24
37.08
37.09
36.73
36.67
36.65
32.90
33.13
33.66
34.26
34.71
34.96
35.27
35.30
34.89
34.87
'34.64
447.5
450.4
461.2
467.0
472.9
475.7
478.5
480.6
480.5
483.6
485.9
287.4
288.6
296.6
302.3
307.0
310.7
312.4
314.4
317.2
318.4
323.4
157.9
158.7
160.0
159.1
160.6
160.7
159.9
159.9
159.5
160.6
160.7
6.3
3.7
4.6
1.9
1975—Jan.'.
Feb...
36.91
35.46
36.51
35.32
36.76
35.27
34.41
33.62
488.2
489.2
328.5
328.9
159.0
159.7
.6
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
3.2
4 .6
5 .6
5.3
4.2
6 .2
Time
and
savings
Private
364.6
406.8
447.5
209.7
240.7
278.5
149.2
160.1
164.0
447.1
450.4
462.5
464.7
470.0
474.3
475.1
'479.7
480.5
481.2
491.8
285.7
288.6
296.2
303.0
306.4
310.1
315.3
317.2
318.6
317.4
321.7
156.3
156.9
161.5
155.6
158.9
160.0
157.0
158.3
159.1
161.4
166.6
495.1
487.0
327.2
326.5
165.0
158.0
Total
.7
S.A.
N .S.A.
365.2
406.4
448.7
369.5
411.2
454.0
4 .7
4.1
2.9
4.1
2.7
2 .4
3.5
454.4
457.9
469.2
475.8
481.2
484.9
487.5
489.2
488.3
491.2
494.3
454.0
457.9
470.6
473.5
478.4
483.5
484.2
488.2
488.3
488.8
500.1
2.9
2 .4
495.8
495.6
502.6
493.4
U.S.
Govt.
5.7
6 .1
5 .0
5.1
4.9
4 .8
6 .1
by Regulation D . Private demand deposits include all demand deposits
except those due to the U.S. Govt., less cash items in process o f collection
and demand balances due from domestic commercial banks.
4 “Total member bank deposits” subject to reserve requirements, plus
Euro-dollar borrowings, loans sold to bank-related institutions, and
certain other nondeposit items. This series for deposits is referred to as
“the adjusted bank credit proxy.”
N ote.— For description o f revised series and for back data, see article
“Revision of Money Stock Measures and Member Bank Reserves and
Deposits” on pp. 817-27 o f the Dec. 1974 B ulletin.
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 o f dollars)
Seasonally adjusted
Loans
Date
Total
loans
and
invest
ments 1
N ot seasonally adjusted
Securities
Commercial
and industrial
T otal1
Plus
loans
sold2
Total
Plus
loans
sold2
U.S.
Treas
ury
Other4
Loans
Total
loans
and
invest
ments 1
Securities
Commercial
and industrial3
Total1
Plus
loans
sold2
Total
Plus
loans
sold2
U.S.
Treas
ury
Other4
1971—Dec. 3 1___
1972—Dec. 3 1 ___
1973—Dec. 3 1___
484.8
556.4
630.3
320.3
377.8
447.3
323.1
380.4
451.6
115.9
129.7
155.8
117.5
131.4
158.4
60.1
61.9
52.8
104.4
116.7
130.2
497.9
571.4
647.3
328.3
387.3
458.5
331.1
389.9
462.8
118.5
132.7
159.4
120.2
134.4
162.0
64.9
67.0
58.3
104.7
117.1
130.6
1974—Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
2 4 .........
2 9 .........
305. . . .
31?----28 p ----25 p ----30*----27^6 ..
31*___
666.9
673.4
677.5
686.6
692.0
687.0
687.1
688.5
681.2
476.3
481.4
484.5
494.3
500.2
498.2
499.5
500.9
494.1
481.7
487.1
489.9
499.7
25 05.5
503.5
504.7
505.8
498.9
169.5
172.9
174.6
177.9
180.7
180.8
182.5
183.0
180.5
172.6
176.0
177.5
180.8
2183.6
183.6
185.3
185.7
183.3
57.1
57.2
56.4
55.8
55.3
52.2
49.7
49.3
48.8
133.5
134.8
136.6
136.5
136.5
136.6
137.9
138.3
138.3
664.2
669.8
681.6
685.4
687.5
686.6
685.8
688.2
699.6
473.0
480.3
491.8
496.6
499.3
499.2
498.2
499.1
506.5
478.4
485.9
497.2
502.0
2504.6
504.5
503.4
504.1
511.3
170.2
172.3
177.2
178.3
179.1
180.9
181.3
182.0
184.7
173.3
175.4
180.1
181.2
2182.0
183.7
184.1
184.7
187.5
56.4
54.1
52.1
52.2
52.0
50.6
50.6
52.2
54.4
134.7
135.5
137.6
136.6
136.2
136.7
137.0
136.8
138.8
1975—Jan. 2 9 * ....
Feb. 2 6 * ....
Mar. 26 p ___
686.1
687.7
691.3
498.3
495.1
493.8
502.9
499.6
498.5
181.7
180.0
178.8
184.4
182.6
181.6
48.9
53.4
58.8
138.9
139.2
138.7
685.1
682.0
686.9
493.5
489.0
487.8
498.1
493.4
492.5
179.6
178.2
178.4
182.3
180.8
181.2
53.7
54.8
59.7
138.0
138.2
139.3
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright for banks’ own foreign branches,
nonconsolidated nonbank affiliates o f the bank, the banks’ holding
company (if not a bank), and nonconsolidated nonbank subsidiaries of
the holding company. Prior to Aug. 28, 1974, the institutions included
had been defined somewhat differently, and the reporting panel o f banks
was also different. On the new basis, both “Total loans” and “Com
mercial and industrial loans” were reduced by about $100 million.
3 Reclassification o f loans at one large bank reduced these loans by
about $400 million as o f June 30, 1972.
4 Farmers Home Administration insured notes included in “Other
securities” rather than in loans beginning June 30, 1971, when such notes
totaled about $700 million.
5 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As o f that date
were increases o f about $500 million in loans, $100 million in “Other
for there
FRASER
securities,” and $600 million in “Total loans and investments.”
Digitized
6 As o f Oct. 31, 1974, “Total loans and investments” o f all commercial
banks were reduced by $1.5 billion in connection with the liquidation
o f one large bank. Reductions in other items were: “Total loans,” $1.0
billion (of which $0.6 billion was in “Commercial and industrial loans”),
and “Other securities,” $0.5 billion. In late November “Commercial and
industrial loans” were increased by $0.1 billion as a result o f loan re
classifications at another large bank.
N ote.— Total loans and investments: For monthly data, Jan. 1959June 1973, see Nov. 1973 B u lle tin , pp. A-96-A-97, and for 1948-58,
Aug. 1968 B u lle tin , pp. A-94-A-97. For a description o f the current
seasonally adjusted series see the Nov. 1973 B u lle tin , pp. 831-32, and
the Dec. 1971 B u lle tin , pp. 971-73. Commercial and industrial loans;
For monthly data, Jan. 1959-June 1973, see Nov. 1973 B u lle tin , pp.
A-96-A-98; for description see July 1972 B u lle tin , p. 683. Data are for
last Wednesday o f 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 14
COMMERCIAL BANKS □ APRIL 1975
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK
(A m o u n ts in m illio n s o f d o lla rs)
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Total
Loans
l
Total
assets—
Total
lia
Securities
Cash
bilities
assets 3 and
capital Total3
U.S.
Other
ac
2
Treas
counts4
ury
Deposits
Interbank3
Other
Demand
D e
mand
Bor
row
ings
Total
capital
ac
counts
Num
ber
of
banks
23
65
163
19,375
25,912
38,083
58,994
7,173
10,059
20,986
42,958
47,211
52,658
58,128
14,278
14,181
13,472
13,686
13,783
13,927
14,171
69,930
67,580
69,910
67,548
67,820
66,750
67,130
67,330
70,100
55,870
59,310
59,950
60,330
61,623
61,490
61,440
61,730
62,020
62,100
63,070
14,236
14,261
14,290
14,337
14,368
14,384
14,399
14,423
14,441
14,457
Times
Time
U.S.
Govt.
Other
Last-Wednesday-of-month series 6
>anks:
3 1 ...
31 7..
3 1 ...
3 1 ...
3 1 ...
3 1 ...
3 1 ...
50,746
116,284
199,509
461,194
516,564
598,808
683,799
21,714
38,057
117,642
313,334
346,930
414,696
494,947
21,808
69,221
61,003
61,742
64,930
67,028
58,277
7,225
9,006
20,864
86,118
104,704
117,084
130,574
26,551
37,502
52,150
93,643
99,832
113,128
118,276
79,104
155,377
257,552
576,242
640,255
739,033
835,224
71,283
144,103
229,843
480,940
537,946
616,037
681,847
10,982
44.,349
15,952
12,792
240 1,343 94,367 35,360
17,079 1,799 5,945 133,379 71,641
30,608 1,975 7,938 209,335 231,084
32,205 2,908 10,169 220,375 272,289
33,854 4,194 10,875 252,223 314,891
36,839 6,773 9,865 263,367 365,002
2 7 ...
2 4 ...
2 9 .. .
3 0 ...
31*..
28*..
, 25*..
30*..
, 27*..
31*..
691,080
699,290
703,820
718,713
719,930
720,430
718,560
720,010
726,250
739,770
500,100
508,140
514,280
528,951
531,110
532,230
531,210
532,400
537,210
546,660
57,510
56,410
54,080
52,114
52,210
51,970
50,630
50,640
52,230
54,360
133,470
134,740
135,460
137,648
136,610
136,230
136,720
136,970
136,810
138,750
104,430
102,360
115,575
126,487
107,730
100,390
107,020
110,370
115,740
126,090
831,500
838,740
857,695
884,295
871,560
863,640
870,400
876,400
890,330
916,320
661,180
669,730
683,175
709,917
694,620
687,270
691,030
698,030
706,010
746,760
32,030
31,450
34,870
42,016
33,660
30,780
30,130
33,600
34,950
45,370
6,490
7,290
8,200
8,903
9,680
9,970
10,610
10,180
10,310
11,250
29*.. 721,560 529,940 53,660 137,960 101,560 871,180 699,770 30,790 11,380
26*.. 721,480 528,470 54,810 138,200 103,760 874,480 699,650 30,680 10,080
, 26*.. 726,950 527,890 59,720 139,340 105,480 883,730 708,870 31,070 11,320
6,110
5,900
5,940
8,367
4,320
4,010
7,270
2,980
3,790
4,540
235,830
236,170
238,215
252,434
243,620
235,330
235,850
242,130
247,840
267,350
380,720
388,920
395,950
398,197
403,340
407,180
407,170
409,140
409,120
4 18,250
4,370 233,210 420,020 60,990 64,010 14,476
2,560 233,930 422,400 63,600 64,460 14,498
3,830 236,070 426,580 62,520 65,100 14,498
Members of
F.R. System:
31 . . .
3 1 ...
3 1 ...
3 1 ...
3 1 ...
3 1 ...
3 1 ...
43,521
97,846
165,619
365,940
405,087
465,788
528,124
18,021
32,628
99,933
253,936
277,717
329,548
391,032
19,539
57,914
49,106
45,399
47,633
48,715
41,494
5,961
7,304
16,579
66,604
79,738
87,524
95,598
23,113
32,845
45,756
81,500
86,189
96,566
100,098
68,121
132,060
216,577
465,644
511,353
585,125
655,898
61,717
122,528
193,029
384,596
425,380
482,124
526,837
10,385
12,353
16,437
29,142
30,612
31,958
34,782
140
50
1,639
1,733
2,549
3,561
5,843
1,709
1,176
5,287
6,460
8,427
9,024
8,273
37,136
80,609
112,393
168,032
174,385
197,817
202,564
12,347
28,340
57,273
179,229
209,406
239,763
275,374
4
54
130
18,578
25,046
36,357
55,611
5,886
8,464
17,398
34,100
37,279
41,228
44,741
6,619
6,923
6,174
5,767
5,727
5,704
5,735
. 2 7 ...
2 4 ...
2 9 ...
3 0 ...
3 1 ...
2 8 ...
2 5 ...
308..
27 *.
31*..
529,961
535,917
538,801
550,388
552,619
552,823
550,837
548,801
556,031
566,966
392,461
399,092
403,619
415,061
418,065
418,705
417,623
416,118
421,377
429,119
40,537
39,273
37,282
35,934
35,860
35,878
34,683
34,813
36,392
38,374
96,963
97,552
97,900
99,393
98,694
98,240
98,531
97,870
98,262
99,473
89,568
87,005
99,155
108,971
91,430
84,947
91,002
93,674
98,591
106,435
649,114
653,285
669,357
692,199
680,511
673,296
679,160
680,173
694,670
715,250
506,641
512,792
524,837
547,031
533,807
527,573
531,195
535,128
542,460
576,231
30,083
29,396
32,452
39,211
31,153
28,487
27,831
31,043
32,421
41,637
5,558
6,364
7,274
7,818
8,598
8,887
9,522
9,089
9,222
10,170
4,817
4,743
4,746
6,624
3,180
2,958
5,782
2,117
2,858
3,117
180,862
179,927
182,060
193,979
186,360
179,429
180,114
184,573
189,663
204,646
285,321
292,362
298,305
299,400
304,516
307,812
307,946
308,306
308,296
316,661
65,428
62,859
64,820
62,836
63,042
61,781
62,171
60,803
65,411
51,977
45,491
45,896
46,090
46,946
46,907
46,814
47,054
47,131
47,320
48,019
5,754
5,763
5,763
5,761
5,767
5,767
5,775
5,776
5,775
5,782
3,247 177,701 316,698 56,136 48,411
1,989 178,596 317,517 58,868 48,741
2,794 180,214 320,273 58,030 49,219
5,784
5,786
5,786
2 9 * .. 550,264 414,426 37,549 98,289 86,321 676,905 536,256 28,311 10,299
26*.. 549,144 412,076 38,628 98,440 88,430 678,970 535,250 28,157 8,991
26*.. 552,957 411,446 42,544 98,967 89,685 685,906 542,076 28,564 10,231
Call date series
Insured banks:
Total:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
1973—Dec.
3 1 ...
3 1 ...
3 1 ...
319..
3 1 ...
3 1 ...
3 1 ...
49,290
114,274
198,011
458,919
514,097
594,502
678,113
21,259
37,583
117,092
312,006
345,386
411,525
490,527
21,046
67,941
60,468
61,438
64,691
66,679
57,961
6,984
8,750
20,451
85,475
104,020
116,298
129,625
25,788
36,926
51,836
92,708
98,281
111,333
116,266
76,820
152,733
255,669
572,682
635,805
732,519
827,081
69,411
141,851
228,401
479,174
535,703
612,822
677,358
10,654
1,762 41,298 15,699
12,615
54 1,325 92,975 34,882
16,921 1,667 5,932 132,533 71,348
30,233 1,874 7,898 208,037 231,132
31,824 2,792 10,150 219,102 271,835
33,366 4,113 10,820 250,693 313,830
36,248 6,429 9,856 261,530 363,294
1974— June 3 0 ... 709,904 521,424 51,832 136,648 123,536 871,986 703,767 40,534 8,427
126,098 891,650 718,798 40,185 9,476
Oct. 1 5 ... 722,622 535,703
186 ,918
National member:
1941—Dec. 3 1 ...
1947—Dec. 3 1 ...
1960—Dec. 3 1 ...
1970—Dec. 319..
1971—Dec. 3 1 ...
1972—Dec. 3 1 ...
1973—Dec. 3 1 ...
27,571
65,280
107,546
271,760
302,756
350,743
398,236
11,725
21,428
63,694
187,554
206,758
247,041
293,555
12,039
38,674
32,712
34,203
36,386
37,185
30,962
3,806
5,178
11,140
50,004
59,612
66,516
73,718
14,977
22,024
28,675
56,028
59,191
67,390
70,711
43,433
88,182
139,261
340,764
376,318
434,810
489,470
39,458
82,023
124,911
283,663
314,085
359,319
395,767
6, 786
8,375
35
9,829
611
982
18,051
17,511 1,828
19,096 2,155
20,357 3,876
1974—June 3 0 ... 418,329 313,659 27,631 77,039 73,703 516,632 407,915 20,086 4,912
Oct. 1 5 ... 421,936 319,611
102,324
74,383 522,642 416,656 20,411 6,008
F o r n o te s see o p p o s ite p a g e.
10
61
149
19,149
25,629
37,556
57,531
6,844
9,734
20,628
42,427
46,731
52,166
57,603
13,426
13,398
13,119
13,502
13,602
13,721
13,964
8,355 250,225 396,226 65,514 61,003 14,108
3,203 257,086 408,849 67,064 62,687 14,188
1,088
795
3,265
4,740
6,014
6,646
5,955
23,262
53,541
71,660
122,298
128,441
146,800
152,705
8,322
19,278
39,546
137,592
160,291
184,622
212,874
4
45
111
13,100
18,169
26,706
39,696
3,640
5,409
11,098
24,868
27,065
30,342
33,125
5,117
5,005
4,530
4,620
4,599
4,612
4,659
5,038 145,954 231,925 48,123 34,966
1,808 150,375 238,053 44,504 35,542
4,693
4,700
APRIL 1975 □ COMMERCIAL BANKS
A 15
PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued
(A m o u n ts in m illio n s o f d ollars)
Loans and investments
Classification by
FRS membership
and FDIC
insurance
Securities
Total
Loans
l
U.S.
Treas
ury
Other
2
Total
assets—
Total
Cash
lia
assets3 bilities
Total 3
and
capital
ac
counts4
Deposits
Interbank3
Other
Demand
De
mand
Time
5
Time
U.S.
Govt.
Bor
row
ings
Total
capital
ac
counts
Num
ber
of
banks
Other
Call date series
Insured banks (cont.):
State member:
1941—Dec. 3 1 .... 15,950 6,295
1947—Dec. 3 1 .... 32,566 11,200
1960—Dec. 3 1 .... 58,073 36,240
1970—Dec. 319... 94,760 66,963
1971—Dec. 3 1 .... 102,813 71,441
1972—Dec. 3 1 .... 115,426 82,889
1973—Dec. 3 1 .... 130,240 97,828
1974—June 3 0 . . . . 132,388 101,732
Oct. 1 5 . .. 137,005 105,462
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
10,532 21,880 29,387 166,780 131,421
3 ; 739
3,978
15
6,608
1,028
11,091
750
13,102
721
12,862
1,406
621
381
2,022
1,720
2,412
2,378
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
1,502
1,918
1,644
1,147
1,128
1,092
14,425
1,968
2,318 49,859 62,851 15,914
11,617
1,076
8,303 22,353 35,268 175,896 139,446 19,125
36,194 182,837 140,676 18,472
31, 543
2,906
2,817
1,586 47,690 68,138 14,713
577 47,570 71,239 19,399
11,980
12,206
1,068
1,072
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
8,708
20,691
39,114
106,457
123,970
147,013
7,702
19,342
35,391
93,998
109,841
130,316
129
53
149
645
1,438
1,723
1,796
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
1973—Dec. 3 1 .... 149,638 99,143
16,467 34,027
16,167 170,831 150,170
1,467
586
1,582 58,966 87,569
1,920
12,862
8,229
1974—June 3 0 .. .. 159,186 106,033
Oct. 1 5 . . . 163,681 110,630
15,898 37,255 14,565 179,457 156,406
15,521 186,171 161,466
53, 050
1,323
1,301
610
651
1,731 56,580 96,162 2,678
816 59,140 99,557 3,161
14,057
14,940
8,347
8,416
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
329
325
358
532
480
491
852
783
352
184
181
206
Noninsured
nonmember:
1941—Dec.
1947—Dec.
1960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
5,776 3,241
3 1 ....
3 1 .... 16,444 4,958
3 1 .... 32,411 17,169
319... 92,399 57,489
3 1 .... 108,527 67,188
3 1 .... 128,333 81,594
7,500 2,155 8,145
19,240 2,125 10,822
16,394 5,439 17,081
11,196 16,600 25,472
11,247 20,125 26,998
11,530 21,008 29,176
1,457
2,009
1,498
3,079
3,147
4,865
455
474
550
2,132
2,224
3,731
1973—Dec. 3 1 ....
6,192
4,927
1974—June 3 0 . . . .
9,269
7,987
Total nonmember:
1941—Dec.
1947—Dec.
I960—Dec.
1970—Dec.
1971—Dec.
1972—Dec.
3 1 ....
317...
3 1 ....
319...
3 1 ....
3 1 ....
7,233 3,696
3 1 ....
3 1 .... 18,454 5,432
3 1 .... 33,910 17,719
319... 95,478 59,621
3 1 .... 111,674 69,411
3 1 .... 133,198 85,325
4
27
141
242
552
262
484
1,091
1,212
1,408
329
241
255
413
642
684
785
763
576
314
934
1,551
1,794
316
949
2,010
8,650
4,996
591
344
9
282
1,001
2,951
12,770
6,610
1,481
476
12
1,266 3,431 10,992
2,270
1,703 4,659 23,334
11,318
11,904 4,287 6,396 40,997
16,342 19,514 12,143 110,822
17,297 24,966 13,643 129,100
18,313 29,559 16,562 154,085
9,573
21,591
36,834
96,568
112,764
134,091
439
643
1,466
1,592
1,895
761
1,280
535
304
239
349
185
132
101
116
81
i157
190
160
243
359
633
1973—Dec. 3 1 .... 155,830 104,070 16,783 34,976
18,177 179,480 155,165
2,057
930
1974—June 3 0 .. .. 168,456 114,020 16,180 38,256
17,516 192,227 163,016
2,804
1,086
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-16.
Effective June 30, 1971, Farmers Home Administration notes were
classified as “Other securities” rather than “Loans.” As a result of this
change, approximately $300 million was transferred to “Other securities”
for the period ending June 30, 1971, for all commercial banks.
See also table (and notes) at the bottom o f p. A-24.
2 See first 2 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 For the last-Wednesday-of-the-month series, figures for call dates
are shown for June and December as soon as they became available.
7 Beginning with Dec. 31, 1947, the series was revised; for description,
see note 4, p. 587, May 1964 B ulletin.
8 Member bank data for Oct. exclude assets o f $3.6 billion of one large
bank.
9 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 majority-
253
478
293
756
1,134
1,620
13
4
14
226
283
527
1,836
2,215
1,463
524
207
2,209
2,432 2,033
620
229
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
i,: 291
18 1,392
13
846
1,298
40
19 1,273
55 1,530
5,i 504
3,613
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
1,592 60,802 89,784 3,383
13,386
8,436
58,789 98,593 4,711
14,677
8,576
1,743
owned domestic subsidiaries) and (2) reporting of figures for total loans
and for individual categories of securities on a gross basis—that is, before
deduction of valuation reserves—rather than net as previously reported.
N ote.—D ata are for all commercial banks in the United States (includ
ing Alaska and Hawaii, beginning with 1959). Commercial banks represent
all commercial banks, both member and nonmember; stock savings
banks; and nondeposit trust companies.
Figures for member banks before 1970 include mutual savings banks
as follows: 3 before Jan. 1960 and 2 through Dec. 1960. Those banks
are not included in insured commercial banks.
Effective June 30, 1959, 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 1 national bank in Puerto Rico.
Beginning Dec. 31, 1973 and June 30, 1974, respectively, member banks
exclude and noninsured nonmember banks include 1 and 2 noninsured
trust companies that are members o f the Federal Reserve System.
Comparability of figures for classes o f 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 16
COMMERCIAL BANKS □ APRIL 1975
ASSETS BY CLASS OF BANK, JUNE 30, 1974
(Amounts in millions o f dollars)
Member banks1
Account
Insured
AU
commercial commercial
banks
banks
Large banks
Total
New
York
City
City of
Chicago
Other
large
All other
N on
member
banks1
123,536
8,350
30,146
29,824
2,080
1,011
52,125
108,971
6,245
30,146
19,732
1,295
884
50,669
36,265
460
6,204
7,560
99
221
21,722
4,217
131
1,319
741
71
70
1,885
38,075
1,983
12,459
3,503
456
498
19,176
30,415
3,671
10,165
7,928
669
96
7,886
17,516
2,133
Demand balances with banks in United States.........
Other balances with banks in United States..............
Balances with banks in foreign countries...................
Cash items in process o f collection..............................
126,487
8,378
30,146
31,853
2,517
1,386
52,207
Total securities held—Book value....................................
U.S. Treasury...................................................................
Other U.S. Govt, agencies..............................................
States and political subdivisions...................................
All other securities...........................................................
189,762
52,114
31,359
99,870
6,420
188,480
51,832
31,001
99,466
6,180
135,326
35,934
20,523
74,457
4,412
15,193
3,715
2,123
8,578
777
5,266
1,207
923
2,930
206
44,738
11,586
5,960
25,850
1,342
70,129
19,426
11,518
37,099
2,087
54,436
16,180
10,835
25,413
2,008
Trade-account securities.................................................
U.S. Treasury...............................................................
Other U.S. Govt, agencies.........................................
States and political subdivisions...............................
6,370
707
1,472
3,921
269
6,368
705
1,472
3,921
269
6,281
691
1,462
3,876
253
2,162
-2 2
505
1,616
63
539
141
148
250
3,293
531
774
1,802
186
288
42
35
207
4
88
16
10
45
17
Bank investment portfolios............................................
U.S. Treasury...............................................................
Other U.S. Govt, agencies.........................................
States and political subdivisions...............................
All other.........................................................................
183,393
51,407
29,886
95,949
6,151
182,112
51,127
29,528
95,545
5,911
129,045
35,243
19,061
70,581
4,159
13,031
3,738
1,617
6,962
714
4,727
1,066
775
2,680
206
41,445
11,056
5,186
24,047
1,156
69,842
19,384
11,483
36,892
2,083
54,348
16,164
10,825
25,368
1,992
Federal funds sold and securities resale agreements...
Commercial banks...........................................................
Brokers and dealers.........................................................
Others.................................................................................
35,307
31,612
2,658
1,037
33,225
29,530
2,658
1,037
25,374
21,780
2,628
966
1,944
1,692
82
170
1,239
900
227
112
11,939
9,379
1,956
602
10,251
9,808
361
82
9,933
9,832
30
72
Other loans............................................................................
Real estate loans...............................................................
Secured by farmland..................................................
Secured by residential.................................................
1- to 4-family residences........................................
FHA insured.........................................................
VA guaranteed......................................................
Other......................................................................
Multifamily...............................................................
FHA insured.........................................................
Other......................................................................
Secured by other properties......................................
494,104
126,173
5,797
78,752
71,577
6,297
3,350
61,930
7,175
1,064
6,112
41,623
488,199
125,914
5,777
78,544
71,387
6,250
3,301
61,836
7,157
1,046
6,110
41,593
390,017
92,093
2,599
58,923
52,993
5,472
2,851
44,669
5,930
954
4,976
30,572
76,484
7,698
6
4,174
2,888
261
196
2,431
1,286
179
1,107
3,519
23,502
1,260
2
833
774
40
20
714
59
28
31
425
147,030
35,201
340
23,742
20,874
3,065
1,505
16,304
2,868
491
2,378
11,119
143,001
47,934
2,251
30,175
28,457
2,106
1,130
25,221
1,717
256
1,461
15,509
104,087
34,079
3,199
19,829
18,584
824
499
17,260
1,245
110
1,135
11,052
Loans to domestic and foreign banks.........................
Loans to other financial institutions...........................
Loans on securities to brokers and dealers................
Other loans for purch./carry securities.......................
Loans to farmers.............................................................
Commercial and industrial loans..................................
13,110
33,567
5,317
4,217
18,444
177,184
11,218
33,418
5,294
4,175
18,423
174,304
10,784
31,997
5,176
3,533
10,885
149,154
5,191
11,881
3,189
623
140
39,229
954
4,509
794
338
222
12,907
4,027
12,956
1,023
1,597
2,622
58,205
612
2,651
170
974
7,901
38,812
2,325
1,570
141
684
7,558
28,030
Loans to individuals........................................................
Instalment loans...........................................................
Passenger automobilies..........................................
Residential-repair/modemize................................
Credit cards and related plans..............................
Charge-account credit cards..............................
Check and revolving credit plans.....................
Other retail consumer goods.................................
Mobile homes.......................................................
Other......................................................................
Other instalment loans............................................
Single-payment loans to individuals........................
All other loans.................................................................
102,615
78,947
33,902
5,151
9,458
7,017
2,442
15,364
8,847
6,518
15,072
23,668
13,479
102,165
78,565
33,648
5,142
9,458
7,016
2,442
15,340
8,845
6,495
14,977
23,600
13,288
74,285
56,485
22,953
3,788
8,408
6,322
2,086
10,890
6,399
4,492
10,445
17,801
12,109
5,104
2,874
458
197
969
689
280
151
76
74
1,099
2,230
3,428
1,410
735
161
38
299
272
27
111
57
54
126
676
1,107
26,254
20,051
7,243
1,522
4,703
3,541
1,162
3,723
2,261
1,462
2,859
6,203
5,144
41,517
32,825
15,091
2,030
2,436
1,820
617
6,906
4,004
2,902
6,362
8,692
2,430
28,330
22,462
10,948
1,363
1,050
694
356
4,474
2,448
2,026
4,627
5,868
1,370
Total loans and securities..................................................
719,173
709,904
550,717
93,621
30,008
203,707
223,381
168,456
Fixed assets—Buildings, furniture, real estate...............
Investments in subsidiaries not consolidated.................
Customer acceptances outstanding..................................
Other assets...........................................................................
14,168
1,595
6,645
16,688
14,092
1,586
6,500
16,367
10,808
1,568
6,249
14,216
1,115
716
3,739
3,539
431
121
359
771
4,358
674
1,900
6,537
4,903
57
251
3,368
3,360
27
396
2,472
Total assets...........................................................................
884,755
871,986
692,529
138,996
35,906
255,251
262,376
192,227
Cash bank balances, items in process..............................
Currency and coin...........................................................
1 Member banks exclude and nonmember banks include 2 noninsured
trust companies that are members o f the Federal Reserve System, and
member banks exclude 2 national banks outside the continental United
States.
2 See table (and notes), Deposits Accumulated for Payment o f Personal
Loans, p. 24.
3 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. Govt., less cash items reported as in
process of collection.
12,121
1,222
502
1,538
N ote.—D ata include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned domestic
subsidiaries. Figures for total loans and for individual categories o f
securities are reported on a gross basis—that is, before deduction of
valuation reserves.
Back data in lesser detail were shown in previous B ulletins. Beginning
with the fall Call Report, data for future spring and fall Call Reports will
be available from the Data Production Section o f the Division o f Data
Processing.
Details may not add to totals because o f rounding.
APRIL 1975 □ COMMERCIAL BANKS
A 17
LIABILITIES AND CAPITAL BY CLASS OF BANK, JUNE 30, 1974
(Amounts in millions of dollars)
Member banks1
Account
Insured
All
commercial commercial
banks
banks
All other
Non
member
banks1
Large banks
Total
New
York
City
City of
Chicago
Other
large
Demand deposits..................................................................
Mutual savings banks.....................................................
Other individuals, partnerships, and corporations. .
U.S. Government.............................................................
States and political subdivisions...................................
Foreign governments, central banks, etc.....................
Commercial banks in United States............................
Banks in foreign countries.............................................
Certified and officers’ checks, etc..................................
302,816
1,298
216,285
8,367
19,379
1,698
34,586
6,131
15,072
299,114
1,186
215,421
8,355
19,249
1,534
33,562
5,786
14,020
239,480
1,103
165,670
6,624
14,264
1,514
32,576
5,532
12,197
60,522
472
26,762
882
1,346
1,307
18,867
4,332
6,553
9,014
1
6,871
226
202
17
1,335
127
235
81,359
171
61,031
2,893
4,076
182
9,135
955
2,916
88,585
459
71,006
2,622
8,640
8
3,240
118
2,493
63,337
196
50,615
1,743
5,116
185
2,010
598
2,875
Time and savings deposits..................................................
Savings deposits...............................................................
404,653
132,868
457
465
206,061
446
47,551
8,843
7,301
661
307,881
96,488
330
456
159,052
334
35,192
8,668
6,784
578
44,468
6,165
16,233
2,039
Mutual savings banks.....................................................
Other individuals, partnerships, and corporations. .
U.S. Government.............................................................
States and political subdivisions....................................
Foreign governments, central banks, etc.....................
Commercial banks in United States............................
Banks in foreign countries.............................................
407,561
133,129
460
486
207,331
446
47,711
9,581
7,502
915
275
25,950
53
2,088
5,074
4,437
426
32
10,969
31
1,655
874
606
27
111,622
33,834
63
129
58,285
100
14,963
2,686
1,461
100
135,559
54,450
267
20
63,848
149
16,487
33
280
25
99,679
36,641
130
30
48,279
111
12,518
913
718
338
Total deposits........................................................................
710,377
703,767
547,361
104,990
25,247
192,980
224,144
163,016
Federal funds purchased and securities sold under
agreements to repurchase...............................................
Other liabilities for borrowed money..............................
Mortgage indebtedness.......................................................
Bank acceptances outstanding..........................................
Other liabilities.....................................................................
57,064
10,483
1,192
6,916
29,091
55,983
9,531
1,188
6,761
25,767
53,652
9,184
1,002
6,509
21,338
11,115
3,665
78
3,980
4,583
5,641
141
5
362
2,015
28,973
4,193
386
1,914
8,053
7,922
1,185
533
253
6,689
3,412
1,299
189
407
7,752
Total liabilities......................................................................
815,123
802,997
639,046
128,411
33,410
236,499
240,726
176,076
Minority interest in consolidated subsidiaries...............
Total reserves on loans/securities.....................................
Reserves for bad debts (IR S)........................................
Other reserves on loans..................................................
Reserves on securities.....................................................
4
8,005
7,709
125
171
4
7,982
7,691
125
166
1
6,535
6,347
79
110
1,449
1,448
1
428
427
1
2,428
2,368
8
52
1
2,231
2,104
69
58
3
1,470
1,362
47
61
Total capital accounts.........................................................
Capital notes and debentures........................................
Equity capital....................................................................
Preferred stock....................... .....................................
Common stock.............................................................
Surplus............................................................................
Undivided profits.........................................................
Other capital reserves..................................................
61,623
4,310
57,313
64
14,525
24,408
17,398
917
61,003
4,203
56,801
59
14,423
24,272
17,196
851
46,946
3,419
43,526
41
10,886
18,655
13,329
616
9,136
752
8,384
18
2,167
3,458
2,737
4
2,068
57
2,012
562
1,140
268
41
16,323
1,682
14,641
11
3,542
6,705
4,130
253
19,418
929
18,490
12
4,614
7,351
6,194
318
14,677
891
13,786
23
3,640
5,753
4,069
301
Total liabilities, reserves, minority interest, capital
accounts..............................................................................
884,755
871,986
692,529
138,996
35,906
255,251
262,376
192,227
Demand deposits adjusted 3...............................................
Average total deposits (past 15 days)..............................
Average total loans (past 15 days)....................................
207,657
693,902
501,628
205,072
687,496
493,909
149,611
532,535
390,178
19,051
96,854
75,995
5,569
24,780
23,483
50,155
189,299
147,258
74,837
221,602
143,441
58,046
161,366
111,450
Selected ratios:
Percentage o f total assets
Cash and balances with other banks...........................
14.3
14.2
15.7
26.1
11.7
14.9
11.6
9.1
Total securities held.........................................................
Trading account securities..........................................
U.S. Treasury...........................................................
States and political subdivisions...........................
All other trading account securities.....................
21.4
.7
.1
.4
.2
21.6
.7
.1
.4
.2
19.6
.9
.1
.6
.2
10.9
1.6
17.5
1.3
.2
.7
.4
26.7
.1
28.3
1.2
.4
14.7
1.5
.4
.7
.4
Bank investment portfolios........................................
U.S. Treasury...........................................................
States and political subdivisions...........................
All other portfolio securities.................................
20.7
5.8
10.8
4.1
20.9
5.9
11.0
4.1
18.6
5.1
10.2
3.4
9 .4
2 .7
5.0
1.7
13.2
3 .0
7.5
2 .7
16.2
4.3
9 .4
2 .5
26.6
7 .4
14.1
5.2
28.3
8 .4
13.2
6 .7
Other loans and Federal funds sold ............................
All other assets.................................................................
Total loans and securities..............................................
59.8
4 .4
81.3
59.8
4 .4
81.4
60.0
4 .7
79.5
56.4
6.6
67.4
68,9
4 .7
83.6
62.3
5.3
79.8
58,4
3.3
85.1
59.3
3.3
87 .6
Reserves for loans and securities..................................
Equity capital—Total......................................................
Total capital accounts.....................................................
.9
6 .5
7 .0
.9
6.5
7.0
.9
6.3
6.8
1.0
6 .0
6 .6
1.2
5.6
5.8
1.0
5.7
6.4
.9
7 .0
7 .4
.8
7 .2
7.6
Number o f banks.................................................................
14,337
14,108
5,761
13
9
156
5,583
8,576
F o r n o te s see o p p o s ite p a g e.
.1
A 18
WEEKLY REPORTING BANKS □ APRIL 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS
(In millions o f dollars)
Federal funds sold, etc.1
Wednesday
Total
loans
and
invest
ments
Other
To brokers
and dealers
involving—
Total
To
com
mer
cial
banks
For purchasing
or carrying securities
To
U.S. Other others
Treas se
ury
curi
se
ties
curi
ties
Totai
Com
mer
cial
and
indus
trial
Agri
cul
tural
To brokers
and dealers
To nonbank
financial
institutions
To
others
U.S.
U.S.
Treas Other Treas Other
ury
secs.
ury
secs.
secs.
secs.
Pers.
and
sales
finan.
COS.,
etc.
Real
estate
Other
Large banks—
Total
1974
Mar.
6 ..................
13..................
20..................
27..................
Feb.
Mar.
375,493
374,813
375,540
378,094
16,805
15,597
15,016
15,447
15,093 1,123
14,020 1,050
13,492
993
13,623 1,210
5 ..................
12..................
19..................
26..................
397,028
394,403
397,374
391,471
21,115
20,653
20,415
17,469
17,027
16,774
16,514
13,959
5p ................
12p ................
19p ................
26p ................
399,986
399,940
395,863
393,857
22,935
22,196
19,539
19,396
17,689
16,103
14,675
15,381
81,270
80,347
80,859
81,742
1,076
1,053
1,079
1,424
986
1,031
1,070
1,356
10
342
311
303
313
247 270,354
216 270,610
228 273,354
301 275,815
111,725
112,702
114,739
115,953
3,776 1,057 5,135
3,792
591 4,898
3,784
575 4,747
3,778
656 4,642
148
145
141
141
1,929
1,802
1,729
1,547
911 291,973 126,468
1,248
1,000 1,077 289,315 126,072
1,076 1,096 291,205 126,083
898 288,802 125,957
1,065
3,570 1,467 3,289
3,513
585 2,769
3,504 1,287 3,443
3,494
800 2,785
82
83
82
81
2,446 10,114 20,898 59,859
2,444 9,785 20,775 59,667
2,470 10,226 20,698 59,751
2,431 9,725 20,455 59,739
2,904
3,438
2,320
2,079
1,377
965 289,909 126,769
1,510 1,145 289,474 125,701
1,537 1,007 288,234 126,027
1,147
789 286,209 125,778
3,424 1,618 3,249
3,447 3,284 3,469
3,402 1,573 3,699
3,390
914 3,209
80
82
84
83
2,408
2,395
2,374
2,373
9,761
9,490
9,443
9,282
20,521
20,299
20,225
20,228
59,524
59,587
59,542
59,475
2,753
2,777
2,767
2,770
8,293
8,397
8,457
8,665
18,133
18,359
18,400
18,583
55,925
56,060
56,261
56,307
1975
New York City
1974
Mar.
6 .................
1 3
2 0
2 7
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
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
6,412
6,406
6,461
6,478
84
138
257
112
73,684
72,662
74,173
72,646
39,306
39,160
39,253
39,175
120
946 2,123
109
517 1,874
117 1,130 2,354
115
725 1,841
18
17
20
18
492
494
498
482
3,498
3,332
3,504
3,246
8,338
8,292
8,242
8,142
7,448
7,468
7,455
7,447
126
286
315
80
74,080
74,490
73,266
71,930
39,356
38,870
38,857
38,738
113 1,421 2,239
111 2,987 2,361
110 1,354 2,649
109
781 2,280
17
19
20
19
485
489
482
476
3,432
3,275
3,283
3,167
8,109
7,922
7,938
7,959
7,429
7,438
7,444
7,444
965
527
472
564
1975
Feb.
5 .................
12..................
19..................
26..................
88,796
88,958
91,539
88,753
1,065
1,613
2,444
1,311
855
1,308
2,051
1,066
126
141
136
128
26
Mar.
5v ................
I2p ................
19p ................
26*................
90,795
91,554
90,670
89,283
1,359
1,807
1,892
2,024
1,111
1,376
1,443
1,813
121
144
133
131
1
1
1
294,223
294,466
294,681
296,352
15,729
14,544
13,937
14,023
14,107 1,123
12,989 1,050
993
12,422
12,267 1,200
342
297
298
305
157 206,175
208 206,890
224 208,843
251 210,452
79,743
80,216
81,718
82,389
3,621
3,639
3,633
3,632
92
64
103
92
1,978
1,987
1,877
1,916
109
106
103
104
2,142
2,170
2,163
2,164
5,474
5,449
5,568
5,641
11,930
12,130
12,119
12,277
49,513
49,654
49,800
49,829
5
Outside
New York City
1974
Mar.
6 .................
13..................
2 0
27..................
Feb.
5 ..................
12..................
19..................
26..................
308,232
305,445
305,835
302,718
20,050
19,040
17,971
16,158
16,172
15,466
14,463
12,893
1,803 1,248
974
1,661
1,593 1,076
1,419 1,060
827 218,289
939 216,653
839 217,032
786 216,156
87,162
86,912
86,830
86,782
3,450
3,404
3,387
3,379
521 1,166
68
895
157 1,089
75
944
64
66
62
63
1,954
1,950
1,972
1,949
6,616
6,453
6,722
6,479
12,560
12,483
12,456
12,313
52,411
52,199
52,296
52,292
Mar.
................
\2 p ................
19p ................
26p ................
309,191
308,386
305,193
304,574
21,576
20,389
17,647
17,372
16,578
14,727
13,232
13,568
2,783
3,294
2,187
1,948
839 215,829
859 214,984
692 214,968
709 214,279
87,413
86,831
87,170
87,040
3,311
3,336
3,292
3,281
197 1,010
297 1,108
219 1,050
133
929
63
63
64
64
1,923
1,906
1,892
1,897
6,329
6,215
6,160
6,115
12,412
12,377
12,287
12,269
52,095
52,149
52,098
52,031
1975
For notes see p. A-22.
1,376
1,509
1,536
1,147
APRIL 1975 □ WEEKLY REPORTING BANKS
A 19
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Investments
Loans (cont.)
Notes and bonds
maturing—
To commer
cial banks
Do
mes
tic
For
eign
Other securities
U.S. Treasury securities
Other (cont.)
Con For
sumer eign
instal govts.
2
ment
All
other
Certif
icates
Total
Total
Within 1 to
1 yr. 5 yrs.
After
5 yrs.
Obligations
o f States
and
political
subdivisions
Tax
war
rants 3
Other bonds,
corp. stocks,
and
securities
Wednesday
Certif.
of
All
All
other partici other5
pation4
Large banks —
Total
1974
3,670
3,592
3,758
3,766
4,975
4,958
5,496
5,863
33,153
33,138
33,105
33,166
1,468
1,466
1,578
1,650
20,143
19,735
19,546
19,875
25,995
25,730
24,869
24,829
5,440
5,278
4,601
4,649
4,338
4,346
4,387
4,278
11,993
11,920
11,772
11,769
4,224
4,186
4,109
4,133
62,339
62,876
62,301
62,003
7,529
7,822
7,600
7,400
41,136
41,123
40,901
40,942
2,433
2,532
2,541
2,463
11,241
11,399
11,259
11,198
................ Mar. 6
...........................13
...........................20
...........................27
2,934
3,166
2,892
2,919
5,450
5,473
5,493
5,504
34,726
34,664
34,587
34,427
1,405
1,436
1,471
1,418
19,265
18,883
19,218
19,067
22,752
23,253
24,427
24,095
3,385
4,138
4,057
4,091
3,757
3.706
3,428
3,407
12,326
12,165
13,254
13,040
3,284
3,244
3,688
3,557
61,188
61,182
61,327
61,105
6,273
6,239
6,237
6,137
39,936
39,994
40,061
40,107
2,480
2,479
2,513
2,562
12,499
12,470
12,516
12,299
................ Feb. 5
.......................... 12
.......................... 19
.......................... 26
2,745
2,671
2,684
2,803
5,329
5,159
5,222
5,155
34,258
34,133
34,034
33,939
1,453
1,363
1,308
1,326
18,770
18,394
18,617
18,254
25,459
26,423
26,739
27,210
4,107
4,966
4,787
5,089
3,711
3,885
3,732
3.707
14,161
14,122
14,252
14,551
3,480
3,450
3,968
3,863
61,683
61,847
61,351
61,042
6,196
6,329
6,090
6,204
40,441
40,444
40,173
39,864
2,610
2,608
2,490
2,452
12,436 ................Mar. 5*
12,466 ...........................12*
12,598 .......................... 19*
12,522 .......................... 26*
1975
New York City
1974
1,349
1,344
1,270
1,370
2,597
2,564
2,874
2,922
2.470
2.470
2,469
2,472
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
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
................ Mar. 6
.......................... 13
.......................... 20
........................... 27
1,501
1,507
1,484
1,442
2,652
2,704
2,682
2,760
2,641
2,628
2,634
2,612
692
701
708
691
3,909
3,859
4,092
3,950
4,333
665
4,868 1,259
5,205 1,071
5,118 1,051
321
323
361
356
2,320 1,027
991
2,295
2,597 1,176
2,558 1,153
9.714
9,815
9,717
9,678
1,765
1,812
1,779
1,664
5,152
5,180
5,133
5,173
562
554
534
533
2,235
2,269
2,271
2,308
................Feb. 5
.......................... 12
.......................... 19
.......................... 26
1,401
1,325
1,293
1,389
2,701
2,613
2,686
2,633
2,609
2,602
2,597
2,591
751
709
665
674
4,017
3,769
3, r *
3,670
5,459
5,542
5,1
5,688
358
468
393
355
2,967 1,112
1,074
2,i
2,954 1,402
3,047 1,275
9,897
9.715
9,704
9,641
1,656
1,682
1,679
1,684
5,331
5,183
5,121
5,034
563
531
533
522
2,347
2,319
2,371
2,401
.................Mar. 5*
.........................12*
.........................19*
.........................26*
1975
1,022
1,111
1,059
1,011
Outside
New York City
1974
2,321
2,248
2,488
2,396
2,378
2,394
2,622
2,941
30,683
30,668
30,636
30,694
728
737
790
828
15,463
15,428
15,223
15,549
20,698
20,703
20,078
20,010
3,799
3,901
3,362
3,365
3,803
3,759
3,826
3,739
51,621
52,329
51,823
51,867
5,187
5,526
5,346
5,310
35,396
35,557
35,345
35,519
1,866
1.965
1.965
1,901
1,433
1,659
1,408
1,477
2,798
2,769
2,811
2,744
32,085
32,036
31,953
31,815
713
735
763
727
15,356
15,024
15,126
15,117
18,419
18,385
19,222
18,977
2,720
2,879
2,986
3,040
3,436 10,006 2,257 51,474
3,383 9,870 2,253 51,367
3,067 10,657 2,512 51,610
3,051 10,482 2,404 51,427
4,508
4,427
4,458
4,473
34,784
34,814
34,928
34,934
1,918 10,264
1,925 10,201
1,979 10,245
2,029 9,991
.Feb. 5
........... 12
..........19
..........26
1,344
1,346
1,391
1,414
2,628
2,546
2,536
2,522
31,649
31,531
31,437
31,348
702
654
643
652
14,753
14,625
14,729
14,584
20,000
20,881
20,931
21,522
3,085
3,855
3,728
4,078
3,353
3,417
3,339
3,352
4,540
4,647
4,411
4,520
35,110
35,261
35,052
34,830
2,047
2,077
1,957
1,930
.Mar. 5*
..........12*
..........19*
..........26*
10,174
10,166
10,071
10,079
2,922
2,877
2,819
2,827
9,172
9,281
9,167
9,137
.Mar. 6
........... 13
..........20
..........27
1975
For notes see p. A-22.
11,194
11,233
11,298
11,504
2,368
2,376
2,566
2,588
51,786
52,132
51,647
51,401
10,089
10,147
10,227
10,121
A 20
WEEKLY REPORTING BANKS □ APRIL 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Deposits
Wednesday
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
Demand
Other
assets
Total
assets/
total
liabil
ities
Total
6
IPC
States
and
polit
ical
sub
divi
sions
Domestic
Interbank
U.S.
Govt.
Com
mer
cial
Mutual
sav
ings
Large banks—
Total
1974
33,386
32,843
32,900
32,860
21,939
23,145
22,992
21,159
3,966
4,341
4,300
4,422
11,843
11,417
12,389
12,384
1,446
1,449
1,465
1,464
22,013
22,270
22,357
22,649
470,086
470,278
471,943
473,032
157,794
156,244
158,290
158,612
110,728
111,911
110,478
111,152
6,470
6,057
6,095
6,521
2,366
1,940
4,044
3,440
23,742
22,313
23,365
22,976
694
732
584
610
5 .......................
12.......................
19.......................
2 6 .......................
32,333
31,745
36,489
29,909
25,636
25,455
21,411
23,997
4,219
4,643
4,772
4,788
11,278
11,566
11,912
10,618
1,689
1,691
1,705
1,696
33,438
33,207
33,583
33,804
505,621
502,710
507,246
496,283
159,563
153,918
160,690
153,243
113,147
112,549
115,209
112,434
6,396
5,943
6,499
6,043
2,767
1,448
1,566
1,440
22,882
21,153
23,643
20,674
748
665
628
612
5*.....................
12*.....................
19*.....................
26*.....................
34,060
32,054
30,809
30,608
22,208
19,650
21,539
23,714
4,136
4,505
4,655
4,643
12,073
11,910
11,397
11,146
1,681
1,681
1,680
1,692
35,022
35,035
33,876
35,536
509,166
504,775
499,819
501,196
161,357
159,368
156,667
155,583
114,720
116,472
112,656
112,802
6,327
5,868
5,942
6,394
2,332
1,714
3,565
1,720
24,011
22,406
21,647
21,118
677
649
618
589
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
45,931
45,370
46,713
48,082
23,924
23,929
23,975
25,132
490
487
440
646
429
385
804
695
11,847
11,458
12,239
12,000
299
297
281
311
Mar.
6 .......................
13.......................
20.......................
27.......................
Feb.
Mar.
1975
New York City
1974
Mar.
6 .......................
13.......................
2 0.......................
2 7.......................
Feb.
5 .......................
12.......................
19.......................
2 6 .......................
11,561
11,595
12,063
11,256
8,984
7,825
6,488
6,489
502
530
541
524
4,617
5,209
4,935
4,415
763
765
770
770
11,870
11,603
12,060
11,946
127,093
126,485
128,396
124,153
45,821
43,297
45,505
44,698
25,670
25,163
25,826
26,544
393
267
267
365
600
110
115
259
10,747
9,824
10,759
9,769
417
351
302
332
Mar.
5*.....................
12*.....................
19*.....................
26*.....................
11,948
11,278
11,241
11,968
7,313
5,290
5,181
7,053
481
501
493
495
4,818
4,949
4,785
4,970
767
765
765
771
12,589
12,775
11,631
12,766
128,711
127,112
124,766
127,306
46,359
45,084
44,434
45,875
26,138
26,211
24,905
25,531
418
328
403
551
473
248
600
268
10,761
10,458
10,659
10,726
360
341
320
307
21,387
20,554
20,399
19,277
15,219
16,913
16,686
16,300
3,490
3,842
3,816
3,922
6,177
5,786
5,995
6,071
771
771
785
785
15,616
15,566
15,435
15,662
356,883
357,898
357,797
358,369
111,863
110,874
111,577
110,530
86,804
87,982
86,503
86,020
5,980
5,570
5,655
5,875
1,937
1 ,555
3,240
2,745
11,895
10,855
11,126
10,976
395
435
303
299
1975
Outside
New York City
1974
Mar.
6 .......................
13.......................
20.......................
27.......................
Feb.
5 .......................
12.......................
19.......................
26.......................
20,772
20,150
24,426
18,653
16,652
17,630
14,923
17,508
3,717
4,113
4,231
4,264
6,661
6,357
6,977
6,203
926
926
935
926
21,568
21,604
21,523
21,858
378,528
376,225
378,850
372,130
113,742
110,621
115,185
108,545
87,477
87,386
89,383
85,890
6,003
5,676
6,232
5,678
2,167
1,338
1,451
1,181
12,135
11,329
12,884
10,905
331
314
326
280
Mar.
5*.....................
12*.....................
19*.....................
26*.....................
22,112
20,776
19,568
18,640
14,895
14,360
16,358
16,661
3,655
4,004
4,162
4,148
7,255
6,961
6,612
6,176
914
916
915
921
22,433
22,260
22,245
22,770
380,455
377,663
375,053
373,890
114,998
114,284
112,233
109,708
88,582
90,261
87,751
87,271
5,909
5,540
5,539
5,843
1,859
1,466
2,965
1,452
13,250
11,948
10,988
10,392
317
308
298
282
1975
For notes see page A-22.
APRIL 1975 □ WEEKLY REPORTING BANKS
A 21
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Deposits (cont.)
Foreign
Govts.,
etc. 2
Com
mer
cial
banks
Borrowings
from—
Time and savings
Demand (cont.)
IPC
Certi
fied
and
offi
cers’
checks
Total6
Sav
ings
Other
States
and
polit
ical
subdivi-
Do
mes
tic
inter
bank
For
eign
govts.2
Fed
eral
funds
pur
chased,
etc. 7
F.R.
Banks
Other
liabili
ties,
etc. 8
Wednesday
Others
Large banks —
Total
1974
1,102
1,059
1,067
1,221
4.523
4,492
4.523
4,678
8,169
7,740
8,134
8,014
193,066
194,079
194,171
195,888
57,418 98,930
57,652 99,899
57,905 99,788
58,250 101,026
23,505
23,524
23,531
23,493
4,704
4,724
4,770
4,886
7,890
7,648
7,541
7,567
57,583
56,802
55,240
53,527
1,270
1,291
1,116
1,222
4,927
5,119
5,018
5,010
7,426
5,750
7,011
5,808
225,582
225,927
224,305
224,440
58,977
59,217
59,474
59,694
120,105
120,370
118,898
118,810
24,979
25,318
25,194
25,299
7,841
7,266
7,055
7,143
11,597
11,706
11,716
11,568
1,153
1,223
1,029
1,129
5,181
5,123
4,939
5,005
6,956
5,913
6,271
6,826
224,687
225,720
226,110
226,917
60,209
60,698
61,152
61,553
118,651
118,854
118,579
118,788
25,009
24,895
24,660
24,529
7,263
7,763
8,104
8,354
11,626
11,579
11,681
11,703
671
1,362
1,910
1,700
5,390
5,910
6,150
6,357
18,093
18,344
18,709
19,433
................Mar. 6
........................... 13
..........................20
........................... 27
52,935
55,493
53,982
50,853
34
1,053
759
3,804
3,765
3,625
3,662
23,734
23,528
23,622
23,311
................Feb. 5
..........................12
..........................19
........................... 26
55,401
51,752
47,580
49,890
40
798
678
3,952
4,094
4,090
4,017
23,449
23,439
24,240
23,764
................Mar. 5 *
........................... 12p
........................... 19*
........................... 26*
1975
New York City
1974
872
839
859
1,004
3,370
3,334
3,392
3,496
4,700
4,641
4,723
4,798
34,633
35,086
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
14,309
13,058
12,297
11,340
998
1,055
897
1,022
3,636
3,761
3,696
3,668
3,360
2,766
3,643
2,739
47,194
47,111
46,849
46,921
5,146
5,192
5,205
5,240
28,079
28,280
27,934
27,945
1.412
1,467
1,473
1,500
3,905
3,511
3,546
3,611
7,127
7,143
7,218
7,168
13,858
16,013
14,979
12,582
950
1,017
753
933
3,807
3,732
3,596
3,648
3,452
2,749
3,198
3,911
47,030
47,058
46,716
46,947
5,257
5,307
5,349
5,407
27,994
27,853
27,421
27,638
1,466
1.413
1,326
1 ,305
3,624
3,827
3,915
3,854
7,238
7,213
7,267
7,280
15,205
14,778
11,829
13,795
230
80
898
220
2,490
2,839
2,837
2,896
5,819
6,146
6,491
6,746
............... Mar. 6
........................... 13
........................... 20
...........................27
981
1,415
1,425
1,358
1,355
8,248
8,072
8,163
8,033
................Feb. 5
............................12
............................19
......................... 26
1,609
1,683
1,804
1,828
7,827
7,822
8,684
8,130
................Mar. 5*
......................... 12*
......................... 19*
......................... 26*
1975
615
53
Outside
New York City
1974
230
220
208
217
1,153
1 ,158
1,131
1,182
3,469
3,099
3,411
3,216
158,433
158,993
159,092
160,336
52,381
52,590
52,827
53,124
78,132
78,678
78,633
79,573
21,759
21,716
21,641
21,594
1,758
1 ,760
1 ,742
1,776
3,905
3.752
3,755
3.752
43,274
43,744
42,943
42,187
272
236
219
200
1 ,291
1,358
1,322
1 ,342
4,066
2,984
3,368
3,069
178,388
178,816
177,456
177,519
53,831
54,025
54,269
54,454
92,026
92,090
90,964
90,865
23,567
23,851
23,721
23,799
3.936
3,755
3,509
3,532
4,470
4,563
4,498
4,400
203
206
276
196
I ,374
I ,391
1,343
1 ,357
3,504
3,164
3,073
2,915
177,657
178,662
179,394
179,970
54,952
55,391
55,803
56,146
90,657
91,001
91 ,158
91 ,150
23,543
23,482
23,334
23,224
3,639
3.936
4,189
4,500
4,388
4,366
4,414
4,423
441
1,282
1,012
1,480
2,900
3,071
3,313
3,461
12,274
12,198
12,218
12,687
............... Mar. 6
......................... 13
......................... 20
......................... 27
39,077
39,480
39,003
38,271
34
72
759
2,389
2,340
2,267
2,307
15,486
15,456
15,459
15,278
............... Feb. 5
.......................... 12
......................... 19
......................... 26
40,196
36,974
35,751
36,095
40
183
625
2,343
2,411
2,286
2,189
15,622
15,617
15,556
15,634
. . . . . . . . .Mar. 5*
......................... 12*
......................... 19*
......................... 26*
1975
For notes see p. A-22.
A 22
WEEKLY REPORTING BANKS □ APRIL 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued
(In millions of dollars)
Reserves
for—
Memoranda
Total
capital
Wednesday
Loans
Secur
ities
Total
loans
(gross)
ad
justed 9
Total
loans
and
De
mand
invest
ments deposits
ad
(gross)
ad
justed 1o
justed 9
Large negotiable
time CD’s
included in time
and savings deposits1
Total
Issued
to
IPC’s
Issued
to
others
All other large
time deposits12
Total
Issued
to
IPC’s
Issued
to
others
Gross
liabili
ties of
banks
to
their
foreign
branches
Large banks—
Total
1974
5.008
5.008
5,000
4,997
32,402
32,450
32,399
32,444
268,396
268,595
271,120
273,873
356,730
357,201
358,290
360,705
98,300
99,148
97,981
99,336
65,877
66,523
66,261
67,815
45,018
45,791
45,454
46,825
20,859
20,732
20,807
20,990
5 .................
12.................
1 9
26.................
5.560
5.561
5,554
5,568
34,374
34,424
34,355
34,387
293,127
290,028
292,214
289,393
377,067 101,581
274,463 99,572
377,968 98,992
374,593 101,220
90,185
90,083
88,324
87,963
62,012
62,309
60,837
60,580
28,173
27,774
27,487
27,383
37,043
37,008
36,625
37,121
20,585
20,366
20,081
20,360
16,458
16,642
16,544
16,761
2,230
1,937
1,868
1,870
5*...............
12*...............
19*...............
26*...............
5.635
5,653
5.636
5,633
34,625
34,649
34,638
34,654
292,410
292,896
290,414
287,421
379,552
381,166
378,504
375,673
100,954
103,194
100,646
102,137
87,649
88,235
88,194
88,932
60,198
60,427
60,023
60,494
27,451
27,808
28,171
28,438
36,749
36,486
36,237
35,860
20,093
19,958
19,807
19,499
16,656
16,528
16,430
16,361
1,899
1,684
2,668
1,922
1 ,382
1.386
1,382
1.386
8,409
8,415
8,449
8,441
62,920
62,398
63,250
64,061
78,935
77,972
78,519
79,016
21,656
21,238
21,169
21,804
20,545
20,921
20,829
21,287
13,942
14,310
14,182
14,539
6,603
6,611
6,647
6,748
Mar.
6 .................
13.................
20.................
27.................
Feb.
Mar.
1,610
2,274
2,459
2,947
1975
New York City
1974
Mar. 6 .................
13.................
2 0
27.................
1,185
1,601
1,750
1,779
1975
Feb.
5 .................
12.................
1 9
26.................
1,570
1.579
1,582
1.580
8.987
8.988
8,979
8,984
72,393
71,460
73,082
71,449
86,440
86,143
88,004
86,245
22.913
21,768
22,568
23,414
30,275
30,179
30,036
30,139
20,290
20,488
20,234
20,250
9,985
9,691
9,802
9,889
9,340
9,239
9,146
9,027
5,578
5,484
5,462
5,371
3,762
3,755
3,684
3,656
1,251
1.236
1.236
1,008
Mar.
5*............... .
12*...............
19p.................
26*.................
1,616
1,628
1.631
1.631
9,065
9,059
9,053
9,047
72,927
73,596
72,422
70,752
88,283
88,853
87,934
86,081
23,177
23,100
21,934
22.913
30,256
30,337
29,999
30,384
20,259
20,154
19,814
20,197
9,997
10,183
10,185
10,187
8,977
8,798
8,737
8,602
5,383
5,304
5,204
5,137
3,594
3,494
3,533
3,465
1,120
1,005
1,902
1,014
3,626
3,622
3,618
3,611
23,993
24,035
23,950
24,003
205,476
206,197
207,870
209,812
277,795
279,229
279,771
281,689
76,644
77,910
76,812
77,532
45,332
45,602
45,432
46,528
31,076
31,481
31,272
32,286
14,256
14,121
14,160
14,242
Outside
New York City
1974
Mar.
6 ...................
13...................
2 0
.
27.................
Feb.
5 .................
12.................
19.................
26.................
3,990
3,982
3,972
3,988
25,387
25,436
25,376
25,403
220,734
218,568
219,132
217,944
290,627
288,320
189,964
288,348
78,668
77,804
76,424
77,806
59,910
59,904
58,288
57,824
41,722
41,821
40,603
40,330
18,188
18,083
17,685
17,494
27,703
27,769
27,479
28,094
15,007
14,882
14,619
14,989
12,696
12,887
12,860
13,105
979
701
632
862
Mar. 5*...............
12*...............
19*...............
26*...............
4,019
4,025
4,005
4,002
25,560
25,590
25,585
25,607
219,483
219,300
217,992
216,669
291,269
292,313
290,570
289,592
77,777
80,094
78,712
79,224
57,393
57,898
58,195
58,548
39,939
40,273
40,209
40,297
17,454
17,625
17,986
18,251
27,772
27,688
27,500
27,258
14,710
14,654
14,603
14,362
13,062
13,034
12,897
12,896
779
679
766
908
425
673
709
1,168
1975
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 stocks.
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 of collection.
11 Certificates of deposit issued in denominations of $100,000 or more.
12 All other time deposits issued in denominations of $100,000 or more
(not included in large negotiable CD’s).
APRIL 1975 □ BUSINESS LOANS OF BANKS
A 23
COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Outstanding
Net change during—
1975
Industry
Mar.
26
Mar.
19
1975
Mar,
Mar.
5
12
Feb.
26
Mar.
Durable goods manufacturing:
Primary m etals....................................
2,044 2,069 2,020 1 ,970 1 ,972
Machinery.............................................
8,096 8,140 8,110 8,286 8,316
3,862
3,815
3,835
Transportation equipment................
3.989
3,917
2,930 2,920 2,851
Other fabricated metal products. . .
2,838 2.836
Other durable goods..........................
4,477
4,481
4,509 4,529 4,517
Nondurable goods manufacturing:
3,836 3,837
3.990 3,986
Food, liquor, and tobacco...............
3,327 3,310
Textiles, apparel, and leather...........
3,358 3,330
2,177 2,171
Petroleum refining..............................
2,199 2,185
3,456 3,459
3,370
Chemicals and rubber.......................
3,439
2,194 2,194
2,163 2,160
Other nondurable goods...................
Mining, including crude petroleum
4,764 4,747
4,706 4,719 4,773
and natural gas..............................
1 ,430 1 ,492
1,503
1 ,516 1 ,608
Trade: Commodity dealers...................
6,162 6,007 6,059 6,055
6,181
Other wholesale.........................
6,465
6,497
6,412
6,610
6,335
Retail............................................
6,236 6,222 6,198 6,187 6,198
Transportation........................................
2,126 2,155
2,262 2,275
2,248
Communication.......................................
7,629 7,560 7,606 7,722 7,617
Other public utilities..............................
5,647 5,652 5,624 5,631
5,631
Construction.............................................
Services...................................................... 11,285 11,307 11 ,310 11,329 11,458
9,827 9,789 9,950 9,787 9.836
All other domestic loans.......................
Bankers’ acceptances................... ..........
2,259 2,430 2,338 2,510 2,366
Foreign commercial and industrial
4,293 4,283 4,253 4,330 4,398
loans...................................................
Total classified loans.............................. 104,567 104,705 104,470 105,376 105,155
Comm, paper included in total clas
sified loans1.......................................
Feb.
10
4
72
2nd
half
IV
1st
half
-6 7
-2 5 7
39
-645
3
19
-3 7 8
77
-1 2 7
365
-1 7 8
-2 6 5
63
349
340
253
512
705
75
247
56
1 ,848
587
503
909
-6 5 2
-2 9 0
-1 3
-9 9
-1 1 8
-1,085
-1 5 2
-5 1
74
-3 1 2
484
-7 2 5
473
-5 5
-1 3 5
500
107
494
311
158
984
-6 1 8
967
256
23
909
-1 0 8
610
338
-2 7 3
-6 4 7
-5 4 7
846
508
484
-465
283
-173
-9
-107
-1 5 0
-3 7 3
-9 8 9
-471
-6 6 9
-3 0 5
598
556
703
349
-2 4 6
261
90
609
-2 7 6
171
387
309
290
-1 9 5
135
-219
-3 8
-281
-4 4
-1 5 5
-1 2 6
507
-2 1 4
-3 6 4
-5 2 7
-2 0 7
-1 8 4
-2 1 3
-7 2 0
-4 2 7
-341
-1 7 0
198
-9 2
1 ,088
231
133
357
-3 6 5
1 ,697
-4 5
304
744
-5 6
387
-2 7 3
829
1 ,099
139
475
1,044
594
594
1,117
443
-105
-588
104
67
-8 1 0 -5,060
-6,458
-2 4 9
2,578
-2 0 8
4,264
-4 5 7
6,842
611
12,491
-8 9 3 - 5 ,0 2 5 -6 ,0 9 7
3,468
4,795
8,263
13,491
-4 3
-4 2 9
-220
-102
95
10
94
-3 6
-8 5
-8
-1 5 0
48
28
-2 8 3
90
34
87
-2 2 8
86
-9
-1 7 8
126
85
38
-122
12
Total commercial and industrial loans
o f large commercial banks........... 125,778 126,027 125,701 126,769 125,957
Jan.
1974
1974
1975
-1 7 9
-6 6
-5 0
-1 0 5
-1 4 6
-8 8
-4
-2 1 0
66
22
140
222
-2
-220
For notes see table below.
“TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS
(In millions of dollars)
Net change during-
Outstanding
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 g oods. .
Mining, including crude pe
troleum and natural gas.
Trade: Commodity d ealers..
Other wholesale.........
Retail............................
Transportation.........................
Communication.......................
Other public utilities...............
Construction............................
Services......................................
All other domestic loans . . . .
Foreign commercial and in
dustrial loans...................
Total loans................................
1974
1975
Industry
Dec.
31
(Tues.)
Mar.
26
Feb.
26
Jan.
29
1,284
4,071
1,672
1 ,237
4,117
1,712
1,249
4,138
1 ,737
1 ,210
4,145
1,673
1,312
2,251
1,323
2,256
1,243
2,288
1 ,197
2,391
Nov.
27
Oct.
30
Sept.
25
1,176
4,049
1 ,586
1,107
3,970
1,570
1,133
3,896
1,535
1,113
2,361
1,093
2,339
1 ,066
2,268
IV
2nd
half
July
31
I
1,104
3,789
1,419
1,116
3,572
1,373
74
-7 4
-1
77
249
138
28
610
125
41
172
45
105
859
263
1,000
2,198
996
2,169
115
-1 4 0
131
123
112
161
43
192
243
284
Aug.
28
III
II
1,561
1,614
1,703
1,763
1,674
1,661
1,649
1,604
1,604
-2 0 2
114
78
42
192
1,158
1,483
1,846
1,130
1,083
1,458
1,812
1,119
1,124
1,542
1,839
1,221
1 ,145
1,518
1,878
1,235
1,179
1,272
1,818
1,170
1,187
1,208
1,820
1,187
1 ,151
1,097
1,778
1,204
1,171
1,048
1,790
1,189
1,182
996
1 ,760
1,149
13
-3 5
-3 2
-1 0 5
-6
421
100
31
23
134
41
33
39
18
134
32
17
555
141
64
3,537
150
1,450
2,283
4,524
1,135
4,034
2,197
5,430
3,082
3,446
153
1,420
2,298
4,505
1,125
3,870
2,191
5,370
3,144
3,523
169
1,472
2,369
4,455
1,158
3,885
2,224
5,320
3,079
3,701
155
1,492
2,594
4,550
1,082
3,963
2,294
5,532
3,224
3,620
171
1,431
2,602
4,379
1,076
3,987
2,281
5,417
3,255
3,468
157
1,488
2,578
4,370
1,047
3,810
2,237
5,340
3,215
3,339
139
1,449
2,527
4,349
1,029
3,672
2,272
5,350
3,122
3,319
166
1,419
2,529
4,322
1,021
3,664
2,218
5,301
3,074
3,197
155
1,446
2,512
4,353
1,030
3,539
2,183
5,275
3,058
-1 6 4
-5
-4 2
-311
-2 6
53
71
-9 7
-1 0 2
-1 4 2
362
16
43
67
201
53
291
22
182
102
209
-2
43
99
-7 6
-1
229
142
77
105
-1 1 5
1
83
-5 2
8
64
289
232
197
209
571
14
86
166
125
52
520
164
259
207
2,528
2,544
2,524
2,457
2,473
2,487
2,401
2,500
2,565
71
56
-1 4 7
198
-9 1
48,118 47,797 48,262 49,199 48,090 47,339 46,426 45,845 45,230 -1 ,0 8 1
2,773
2,023
1,872
4,796
i New item to be reported as o f the last Wednesday o f each month.
N o t e .— 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 o f such loans held by all weekly reporting banks
and about 70 per cent o f those held by all commercial banks.
1974
1974
1975
For description of series see article “Revised Series on Commercial and
Industrial Loans by Industry,” Feb. 1967 B u l l e t in , p. 209.
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 24
DEMAND DEPOSIT OWNERSHIP □ APRIL 1975
GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1
(In billions of dollars)
Type of holder
Class of bank, and quarter or month
Financial
business
Nonfinancial
business
1970—Dec..................................................................................
17.3
1971—Mar.................................................................................
June................................................................................
Sept.................................................................................
Dec..................................................................................
18.3
18.1
17.9
18.5
1972—Mar.................................................................................
June................................................................................
Total
deposits,
IPC
All
other
Consumer
Foreign
92.7
53.6
1.3
10.3
175.1
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
Dec.................................................................................
20.2
17.9
18.0
18.9
92.6
97.6
101.5
109.9
54.7
60.5
63.1
65.4
1.4
1.4
1.4
1.5
12.3
11.0
11.4
12.3
181.2
188.4
195.4
208.0
1973—Mar.................................................................................
June................................................................................
Sept.................................................................................
Dec..................................................................................
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
1974—Mar.................................................................................
June................................................................................
Sept.................................................................................
Dec.r...............................................................................
18.9
18.2
17.9
19.0
108.4
112.1
113.9
118.8
70.6
71.4
72.0
73.5
2.3
2.2
2.1
2.3
11.0
11.1
10.9
11.7
211.2
215.0
216.8
225.4
All insured commercial banks:
Weekly reporting banks:
1971—Dec..................................................................................
14.4
58.6
24.6
1.2
5.9
104.8
1972—Dec.................................................................................
14.7
64.4
27.1
1.4
6.6
114.3
1973—Dec.................................................................................
14.9
66.2
28.0
2.2
6.8
118.1
1974—Mar.................................................................................
Apr..................................................................................
May................................................................................
June................................................................................
July.................................................................................
Aug.................................................................................
Sept.................................................................................
Oct.r...............................................................................
Nov. r .............................................................................
Dec.r..............................................................................
14.7
14.7
14.2
14.1
14.4
14.1
13.9
14.7
14.6
14.8
61.5
62.2
62.3
63.4
63.5
62.6
64.4
64.4
65.9
66.9
27.6
29.6
28.0
28.1
28.5
28.0
28.4
28.4
28.7
29.0
2.1
2.1
2.1
2.0
2.1
1.9
2.0
2.0
2.1
2.2
6.3
6.2
6.1
6.3
6.5
5.8
6.3
6.4
6.5
6.8
112.1
114.7
112.7
113.9
115.1
112.5
115.0
115.8
117.7
119.7
1975—J a n .'...............................................................................
Feb.*...............................................................................
14.8
14.4
65.6
63.1
29.2
27.9
2.2
2.3
6.6
6.2
118.3
113.9
1 Including cash items in process of collection.
N o te .— Daily-average
balances maintained during month as estimated
from reports supplied by a sample of commercial banks. For a detailed
description of the type of depositor in each category, see June 1971
B u l l e t in , 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,
1972
559
554
311
71
381
Dec. 31,
1973
507
503
288
64
352
June 30,
1974
460
457
265
65
330
Oct. 15,
1974
407
247
39
286
1 Beginning Nov. 9,1972, designation of banks as reserve city banks for
reserve-requirement purposes has been based on size of bank (net demand
deposits of more than $400 million), as described in the B u l l e t in for
July 1972, p. 626. Categories shown here as “Other large” and “All other
member” parallel the previous “Reserve City” (other than in New York
City and the City of Chicago) and “Country” categories, respectively
(hence the series are continuous over time).
Class of
bank
All member—Cont.
Other large banks i ...........
All other member i ............
All nonmember......................
Noninsured.........................
Dec. 31,
1972
69
313
177
172
5
Dec. 31, June 30,
1973
1974
58
294
155
152
3
63
267
130
127
3
Oct. 15,
1974
66
220
121
N o t e .—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 p. A-14;
from the figures for weekly reporting banks as shown on pp. A-l 8-A-22
(consumer instalment loans); and from the figures in the table at the
bottom of p. A-l 3. But they are included in the figures for “Time de
posits” and “Loans” for call dates as shown on pp. A-14—A-l7.
APRIL 1975 □ LOAN SALES BY BANKS; OPEN MARKET PAPER
A 25
LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS
(Amounts outstanding; in millions of dollars)
To selected related institutions1
By type of loaii
Date
Total
Commercial
and
industrial
All
other
Real
estate
1974—Dec.
4.........................
11.........................
18.........................
25.........................
4,775
4,765
4,837
4,901
2,568
2,592
2,678
2,821
178
182
182
180
2,029
1,991
1,977
1,900
1975—Jan.
1 ........................
8 .........................
15.........................
22.........................
29.........................
4,809
4,641
4,663
4,664
4,642
2,746
2,679
2,703
2,691
2,724
182
184
181
181
181
1,881
1,778
1,779
1,792
1 ,737
Feb.
5.........................
12.........................
19.........................
26 r.......................
4,475
4,609
4,510
4,545
2,630
2,755
2,661
2,707
181
175
174
179
1 ,664
1 ,679
1,675
1,659
Mar.
5.........................
12.........................
19.........................
26.........................
4,688
4,721
4,693
4,691
2,741
2,800
2,769
2,791
201
201
204
204
1,746
1,720
1,720
1,696
1 To bank’s own foreign branches, nonconsolidated non
bank affiliates of the bank, the bank’s holding company (if
not a bank), and nonconsolidated nonbank subsidiaries of
the holding company.
N o t e .— Series changed on Aug. 28, 1974. For a comparison
of the old and new data for that date, see p. 741 of the Oct.
1974 B u l l e t in . Revised figures received since Oct. 1974
that affect that comparison are shown in note 2 to this table
in the Dec. 1974 B u l l e t in , p. A-27.
COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
(In millions of dollars)
Dollar acceptances
Commercial paper
End
of
period
Bank-related 5
Financial
comnanies1
Non
finan
All
cial
issuers
com Dealer- DiDealer- Di
placed2 rectly- panies4 placed rectlyplaced
placed 3
Total
Accepting banks
Total
Based on-
F.R. Banks
Own
bills
Bills
bought
Own
acct.
For
eign
corr.
Others
ImEx
ports
ports
into
from
United United
States States
All
other
3,134
1,997
3,603
4,317
4,428
5,451
7,058
1,198
1,906
1,544
1,567
2,694
983
1,447
1,344
1,318
1,960
215
459
200
249
735
193
164
58
64
57
191
156
109
146
250
2,022
2,090
2,717
3,674
4,057
997
1,086
1,423
1,889
2,601
829
989
952
1,153
1,561
1,778
2,241
2,053
2,408
2,895
524
1,226
1,938
1,449
1,411
2,943
7,889
6,898
8,892
3,480
2,706
2,837
2,689
2,006
2,318
791
700
519
261
106
68
254
179
581
3,894
3,907
5,406
2,834
2,531
2,273
1,546
1,909
3,499
3,509
2,458
3,120
9,771
10,794
9,250
9,697
10,046
9,968
10,562
10,885
12,659
14,003
14,532
12,694
1,960
1,923
2,137
2,270
1,978
1,579
1,465
2,425
2,185
2,046
1,947
1,874
3,541
3,606
3,908
4,564
5,106
5,373
5,585
6,350
6,446
6,408
6,697
6,444
9,101
9,364
10,166
10,692
11,727
13,174
15,686
16,167
16,035
16,882
17,553
18,484
2,706
2,854
2,986
3,232
3,089
3,535
3,499
3,388
3,347
3,291
3,789
4,226
2,251
2,328
2,413
2,744
2,642
3,066
2,983
2,866
2,942
2,872
3,290
3,685
454
525
573
488
447
469
516
522
405
419
499
542
68
69
296
216
373
304
218
277
504
218
611
999
589
592
684
700
732
795
1,023
1,202
1,459
2,037
1,702
981
5,738
5,850
6,200
6,544
7,532
8,540
10,947
11,300
10,724
11,335
11,452
12,278
2,334
2,434
2,827
2,900
2,952
3,287
3,589
3,585
3,526
3,793
3,810
4,023
3,492 3,275
3,182 3,748
2,979 4,361
2,833 4,959
2,899 5,876
3,219 6,668
3,774 8,323
3,933 8,649
3,806 8,703
3,759 9,330
3,709 10,035
4,067 10,394
5,029 31,851 14,648
1,946
6,625| 18,602
4,357
454
966
384 12,894
4,120
4,314 10,168
196 6
196 7
196 8
196 9
1970...........
13,645
17,085
21,173
32,600
33,071
2,332
2,790
4,427
6,503
5,514
10,556
12,184
13,972
20,741
20,424
757
2,111
2,774
5,356
7,133
1,160
352
1971...........
1972...........
1973...........
32,126
34,721
41,073
5,297 20,582
5,655 22,098
5,487 27,204
6,247
6,968
8,382
1974-Jan...
Feb...
Mar...
A p r...
M ay..
June..
July..
Aug...
Sept..
O ct...
N ov..
D ec..
45,491
47,164
44,690
44,677
46,171
44,846
45,561
47,967
49,087
51,754
51,883
49,070
6,367
7,201
6,571
6,228
5,699
4,970
4,655
5,308
5,333
5,242
4,860
4,611
29,353
29,169
28,869
28,752
30,426
29,908
30,344
31,774
31,095
32,509
32,491
31,765
1975—Jan.. 51,528
Held b y -
1 Financial companies are institutions engaged primarily in activities
such as, but not limited to, commercial, savings, and mortgage banking;
sales, personal, and mortgage financing; factoring, finance leasing, and
other business lending; insurance underwriting; and other investment
activities.
2 As reported by dealers; includes all financial company paper sold in
the open market.
3 As reported by financial companies that place their paper directly
with investors.
3,903
4 Nonfinancial companies include public utilities and firms engaged
primarily in activities such as communications, construction, manufac
turing, mining, wholesale and retail trade, transportation, and services.
5 Included in dealer- and directly-placed financial company columns.
Coverage of bank-related companies was expanded in Aug. 1974. Most
of the increase resulting from this expanded coverage occurred in directlyplaced paper.
A 26
INTEREST RATES □ APRIL 1975
PRIME RATE CHARGED BY BANKS
(Per cent per annum)
Effective date
1974—Apr. 11
15,
19,
Rate
934—98/10—
10a
10a - 107 io10%
10-1 Oi/io-
1974—June
25.
26.
30.
May
2.
3.
6.
7.
10.
13.
17.
20,
1114-111/2"11 6/10
28..
18...........
19...........
1 1 3 4 H-1 1 8 /10.
12
3..
5..
9..
23..
10%-10«/io1034 a -l 1
106/io-10%a
-11
IO6/ 10-IO 3411a
11a
11- 1 114"
11...........
14...........
111/4 a-11 %■
1 1 8/10
llVi-1134 a 11 8/10
1134 a -l 18/!,
26..
July
Nov. 4 ...........
ll % 1114-111,4 ai
111,4 a-1134
25...........
1 l 8/io-12a
12a-12i4
’W
Dec.
2...........
934- 10-1014
1975—Jan.
9 ...........
91/ 2- 10-
-
Aug. 20..
10 3 4 -1 2 B
Sept. 26..
IO34-IH / 2-
Oct.
7..
11
l l i 4 « - l l 4/io
I I 14-H -V 10
- l li / 2a
ll^ a -1 1 3 4
H%-
1134a
IO34- H 1411% 1134
21..
N ote.—Beginning Nov. 1971, several banks adopted a floating prime
ate keyed to money market variables, a denotes the predominant prime
ate quoted by commercial banks to large businesses.
814- 8I/2 B
81/4-81/2
734- 814 - 81/2
734_8a-8i4
734- 8 a
7i/2-734b-8
71/2--734-8
101/4--
20...........
28...........
29...........
IO34- H 14-
834-9 -9 14*9V4-934
834-9-914*
83/4-9b
81/ 2-834 .- 9
81/2b-834
101/2
91/ 2- 934- 10101491/ 2- 9341Oa-1 014
91/ 2-934 a-l 0
91/2--934-10
91/2--934
15...........
1 0 3 4 - 1 H /2 34 a—12
15..
Rate
-1 0 % .
13...........
1 1 3 4 -1 2 B
Effective date
1034-111975—Feb. 3.
1H/4-4,
11%
10.
1034-1 la 18.
24,
111/4
101/2-103411a
Mar. 3,
10i/4-1034a5,
11
6,
10-10V410
103417,
10-101410%18,
24,
103410- 1014101/2-
1974—Oct. 28...........
25..
104/1010y2
10i4-104/io10% .
104/10IOI/2 a 10^-11
lOVia106/io—
1034-11
Rate
11%
10..
21..
24..
WArn-lQi/io
10V4m-
Effective date
3...
7..
10y4 m
Apr. 23.
24.
Rate
Effective date
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.
1975
Nov.
1974
Feb.
1975
Nov.
1974
Feb.
1975
Nov.
1974
Feb.
1975
Nov.
1974
Feb.
1975
Nov.
1974
Feb.
1975
Nov.
1974
11 .97
12.05
12.46
11 .93
11 .43
11 .77
11 .86
9.93
9.74
10.09
9.85
10.22
9.83
10.05
11.80
11.56
12.34
11.77
11.62
11 .74
11.56
9.73
9.50
9.96
9.74
10.12
9.84
9.84
11 .44
11 .21
11 .91
11 .53
11 .62
11 .36
11 .32
11 .99
11 .89
11 .68
12.57
13.09
12.28
11 .68
10.18
9.87
10.98
10.24
9.00
10.75
10.17
11 .60
11 .77
11 .75
11 .79
10.98
11 .82
11 .57
8.98
7.61
10.90
10.22
9.76
10.37
9.40
11 .56
11 .57
12.50
11 .72
11 .25
12.06
11 .33
12.09
12.37
11 .98
11 .90
12.14
12.28
12.04
10.16
9.78
10.20
9.45
11 .95
10.09
10.94
11.71
12.02
11.55
11 .75
12.02
12.68
11 .60
10.21
9.53
10.49
11 .81
9.16
9.60
9.78
12.23
11 .93
12.61
12.44
17.29
12.49
12.06
Short-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................
9.94
9.61
10.31
9.87
10.24
10.01
9.99
11.64
11.35
12.22
11.66
11.52
11 .56
11 .48
10.94
10.82
12.07
10.55
10.59
10.36
11 .23
11 .81
12.31
13.03
11 .54
11 .44
10.87
12.26
10.73
10.60
11 .31
10.49
10.52
10.47
10.75
12.04
12.11
12.84
11 .99
11 .34
11 .64
11.99
10.25
10.14
10.64
10.09
10.21
10.11
10.22
Revolving credit
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................
9.20
7.84
10.83
10.32
9.77
10.54
9.52
11 .60
11 .60
12.26
11.82
11.53
12.06
11.39
11 .03
10.98
12.05
11 .77
10.61
11 .61
10.67
12.71
12.25
12.08
13.34
13.03
12.70
10.56
10.59
10.60
11.14
10.41
11.18
10.13
12.00
11 .97
11 .98
12.29
11 .41
12.33
11.89
10.14
9.98
9.97
10.97
10.35
10.57
9.77
Long-term
35 centers.....................................
New York City........................
7 Other Northeast...................
8 North Central.......................
7 Southeast...............................
8 Southwest..............................
4 West Coast............................
10.26
9.62
10.48
11.33
10.42
9.87
10.07
12.16
11 .96
12.35
12.29
13.81
12.27
12.01
10.54
9.27
10.99
10.32
9.67
11 .99
8.36
11 .74
8.87
12.66
10.90
11 .21
12.39
12.75
10.55
10.82
10.77
10.25
10.47
10.12
10.77
12.04
11 .45
12.52
11.89
11.45
12.18
11.99
10.57
10.46
10.51
10.17
11.11
10.46
11 .28
APRIL 1975 □ INTEREST RATES
A 27
MONEY MARKET RATES
(Per cent per annum )
U.S. Government securities 5
Prime
commercial
paper1
Period
90-119
days
1967.
1968.
1969.
4 to 6
months
Finance
CO.
paper
placed
directly,
3 to 6
months 2
Prime
bankers’
accept
ances,
90 days 3
Fed
eral
funds
rate4
3-month bills6
Rate
on new
issue
Market
yield
6-month bills6
Rate
on new
issue
Market
yield
9- to 12-month issues
1-year
bill (mar Other7
ket yield)6
3- to 5year
issues 7
5.10
5.90
7.83
4.89
5.69
7.16
4.75
5.75
7.61
4.22
5.66
4.321
5.339
6.677
4.29
5.34
6.67
4.630
5.470
6.853
4.61
5.47
8 .2 1
6 .8 6
4.71
5.46
6.79
4.84
5.62
7.06
5.07
5.59
6.85
7.23
4.91
4.52
7.40
8.62
7.31
4.85
4 .47
8.08
9.92
7.17
4.66
4.44
8.74
10.51
6.458
4.348
4.071
7.041
7.886
6.39
4.33
4.07
7.03
7.84
6.562
4.511
4.466
7.178
7.926
6.51
4.52
4.49
7.20
7.95
6.49
4.67
4 .77
7.01
7.71
6.90
4.75
4.86
7.30
8.25
7.37
5.77
5.85
6 .92
7.81
8.43
9.61
7.986
8.229
8.430
8.145
7.752
8.744
8.363
7.244
7.585
7.179
7.96
8.33
8.23
7.90
7.55
8.96
8.06
7.46
7.47
7.15
7.829
8.171
8.496
8.232
8.028
8.853
8.599
7.559
7.551
7.091
7.83
8.32
8.40
7.34
8.08
8 .2 1
7.94
9.11
8.53
7.74
7.52
7.11
8.16
8.04
8.88
8.52
7.59
7.29
6.79
7.86
8.66
8.78
8.71
8.89
9.54
8.95
8.04
7.67
7.33
7.33
7.99
8.24
8.14
8.39
8.64
8.38
7.98
7.65
7.22
1970.
1971.
1972.
1973.
1974.
10.05
7.72
5.11
4.69
8.15
9.87
1974—Mar..
A pr..
M ay.
June.
July..
Aug..
Sept..
O ct..
N ov..
D e c ..
8.64
9.92
10.82
11.18
11.93
11.79
11.36
9.55
8.95
9.18
8.42
9.79
10.62
10.96
11.72
11.65
11.23
9.36
8.81
8.98
7.76
8.43
8.94
9 .00
9 .00
9.31
9.41
9.03
8.50
8.50
10.79
11.88
12.08
11.06
9 .34
9.03
9.19
9 .35
10.51
11.31
11.93
12.92
12.01
11.34
10.06
9.45
8.53
1975—Jan...
Feb..
Mar..
7.39
6.36
6.06
7.30
6.33
6.06
7.31
6.24
6.00
7.54
6.35
6.22
7.13
6.24
5.5 4
6.493
5.583
5.544
6.26
5.50
5.49
6.525
5.674
5.635
6.36
5.62
5.62
6.27
5.56
5.70
6.74
5.97
6.10
7.29
6.85
7.00
9.23
8.95
9.2 0
9.28
9.05
8.78
9.0 0
9.06
8.50
8.50
8.50
8 .50
9.55
9.03
9.03
9.16
9.02
8.86
8.72
8.45
7.524
7.172
7.058
6.963
7.44
7.24
6.92
7.01
7.564
6.911
6.858
7.032
7.34
7.04
6.99
7.11
7.15
6.79
6.56
6.67
7.65
7.26
7.16
7.26
7.46
7.16
7.06
7.17
9.13
7.95
7.63
6.85
8.84
7.83
7.53
6.85
8.47
7.98
7.65
6.78
9.08
8.33
7.66
7.03
7.35
7.70
7.22
7.17
7.113
6.698
6.678
6.369
6.96
6.59
6.54
5.98
7.101
6.682
6.646
6.373
6.99
6.64
6.54
6.14
6.70
6.45
6.44
6.15
7.17
6.91
6.95
6.66
7.26
7.23
7.32
7.36
6.55
6.50
6.38
6.31
6.48
6.45
6.34
6.28
6.38
6.25
6.25
6.25
6.59
6.34
6.47
6.26
6.99
6.46
6.28
6.29
5.606
5.669
5.800
5.408
5.68
5.61
5.65
5.25
5.825
5.736
5.800
5.483
5.92
5.65
5.70
5.43
5.87
5.51
5.60
5.44
6.31
5.95
6.06
5.84
7.23
6.91
6.92
6.71
6.25
6.25
6.08
5.95
5.91
6.25
6.25
6.08
5.95
5.91
*6.23
6.18
6.05
5.90
5.88
c6 . 33
6.37
6.29
6.11
6.11
6.15
5.88
5.44
5.38
5.53
5.455
5.637
5.622
5.376
5.542
5.47
5.57
5.46
5.41
5.53
5.675
5.742
5.655
5.473
5.669
5.66
5.68
5.56
5.54
5.69
5.67
5.69
5.62
5.66
5.81
6.04
6.07
6.03
6.06
6.20
6.83
6.86
6.88
7.05
7.19
4.66
8 .2 0
1 0 .6 8
8 .1 2
Week ending—
1974—Dec.
7.,
14.,
21.,
28.,
1975—Jan.
Feb.
1.
15.
22.
Mar.
1.
15.
22.
29.
1 Averages o f the most representative daily offering rate quoted by
dealers.
2 Averages o f the most representative daily offering rate published by
finance companies, for varying maturities in the 90-179 day range.
3 Beginning Aug. 15, 1974, the rate is the average o f the midpoint of
the range o f daily dealer closing rates offered for domestic issues; prior
data are averages o f the most representative daily offering rate quoted by
dealers.
4 Seven-day averages for week ending Wednesday. Beginning with
statement week ending July 25, 1973, weekly averages are based on the
daily average o f the range o f 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 o f the day’s transactions, usually the one at which most trans
actions occurred.
5 Except for new bill issues, yields are averages computed from daily
closing bid prices.
6 Bills quoted on bank-discount-rate basis.
7 Selected note and bond issues.
N o t e . — Figures for Treasury bills are the revised series described on p.
A-35 of the Oct. 1972 B u l l e t in .
A 28
INTEREST RATES a APRIL 1975
BOND AND STOCK YIELDS
(Per cent per annum)
Government bonds
Corporate bonds
State and local
United
States
(long
term)
Period
Stocks
By selected
rating
Aaa utility
Dividend/
price ratio
By
group
Earnings/
price ratio
Total1
Baa
Total 1
New
issue
Re
cently
offered
Aaa
Baa
Indus
trial
Rail
road
Public
utility
Pre
ferred
Com
mon
Com
mon
Seasoned issues
6.59
5.74
5.63
6.30
6.99
6.42
5.62
5.30
5.22
6.19
6.12
5.22
5.04
4.99
5.89
6.75
5.89
5.60
5.49
6.53
8.68
7.62
7.31
7.74
9.33
8.71
7.66
7.34
7.75
9.34
8.51
7.94
7.63
7.80
8.98
8.04
7.39
7.21
7.44
8.57
9.11
8.56
8.16
8.24
9.50
8.26
7.57
7.35
7.60
8.78
8.77
8.38
7.99
8.12
8.98
8.68
8.13
7.74
7.83
9.27
7.22
6.75
7.27
7.23
8.23
3.83
3.14
2.84
3.06
4.47
6.46
5.41
5.50
7.12
*>11.76
6.81
7.04
7.07
7.03
7.18
7.33
7.30
7.22
6.93
6.78
5.44
5.76
6.06
6.17
6.70
6.70
6.77
6.56
6.54
7.04
5.20
5.45
5.89
5.95
6.34
6.38
6.49
6.21
6.06
6.65
5.71
6.06
6.30
6.41
7.10
7.10
7.18
6.99
7.01
7.50
8.46
8.99
9.24
9.38
10.20
10.07
10.38
10.16
9.21
9.53
8.44
8.95
9.13
9.40
10.04
10.19
10.30
10.23
9.34
9.56
8.27
8.50
8.68
8.85
9.10
9.36
9.67
9.80
9.60
9.56
8.01
8.25
8.37
8.47
8.72
9.00
9.24
9.27
8.89
8.89
8.65
8.88
9.10
9.34
9.55
9.77
10.12
10.41
10.50
10.55
8.12
8.39
8.55
8.69
8.95
9.16
9.44
9.53
9.30
9.23
8.35
8.51
8.73
8.89
9.08
9.30
9.46
9.64
9.59
9.59
8.44
8.68
8.86
9.08
9.35
9.70
10.11
10.31
10.14
10.02
7.56
7.83
8.11
8.25
8.40
8.61
8.93
8.78
8.60
8.78
3.65
3.86
4.00
4.02
4.42
4.90
5.45
5.38
5.13
5.43
8.96
1975—Ja..............n 6.68
6.61
Feb...........
6.73
Mar..........
6.89
6.40
6.70
6.39
5.96
6.28
7.45
7.03
7.25
9.36
8.97
9.35
9.45
9.09
9.38
9.55
9.33
9.28
8.83
8.62
8.67
10.62
10.43
10.29
9.19
9.01
9.05
9.52
9.32
9.25
10.10
9.83
9.67
8.41
8.07
8.04
5.07
4.61
4.42
197 0
197 1
197 2
1973
197 4
1974—Ma r
Apr.........
M ay. . . .
June. . . .
July.........
Aug.........
Sept.........
Oct..........
N ov.........
D ec..........
10.30
14.62
2>i3.i4
Week ending—
1975— Feb.
1.
8.
15.
22.
6.67
6.59
6.58
6.63
6.63
6.36
6.31
6.43
6.00
5.90
5.85
6.00
7.30
7.00
6.95
7.05
9.00
8.89
9.02
9.04
9.21
9.12
9.10
9.08
9.48
9.42
9.35
9.29
10.59
10.52
10.46
10.39
9.16
9.11
9.02
8.97
9.46
9.39
9.33
9.30
10.00
9.95
9.87
9.79
8.56
8.17
8.07
8.00
4.79
4.68
4.63
4.54
Mar.
1.
8.
15.
22.
29.
6.64
6.67
6.67
6.75
6.83
6.51
6.51
6.64
6.76
6.89
6.10
6.10
6.20
6.35
6.45
7.10
7.10
7.20
7.30
7.40
8.94
8.91
9.27
9.60
9.60
9.06
9.17
9.31
9.41
9.62
9.26
9.25
9.24
9.28
9.34
10.32
10.31
10.28
10.28
10.29
8.95
8.98
9.01
9.07
9.15
9.26
9.24
9.22
9.29
9.29
9.73
9.67
9.63
9.66
9.70
8.02
7.92
8.06
8.02
8.17
4.58
4.45
4.42
4.39
4.42
13
20
30
41
30
40
14
500
Number of
issues2. . .
1 Includes bonds rated Aa and A, data for which are not shown sep
arately. Because of a limited number of suitable issues, the number
of corporate bonds in some groups has varied somewhat. As of Dec.
23, 1967, there is no longer an Aaa-rated railroad bond series.
2 Number of issues varies over time; figures shown reflect most recent
count.
N ote .— A nn u al y ield s are a v erages o f w eek ly , m o n th ly , or q u arterly
d a ta .
Bonds: Monthly and weekly yields are computed as follows: (1) U.S.
Govt., averages of daily figures for bonds maturing or callable in 10 years
or more; from Federal Reserve Bank of New York. (2) State and local
121
20
500
govt., general obligations only, based on Thurs. figures, from Moody’s
Investors Service. (3) Corporate, rates for “New issue” and “Recently
offered” Aaa utility bonds, weekly averages compiled by the Board of
Governors of the Federal Reserve System and rates for seasoned issues,
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 as of end of period.
Preferred stock ratio based on 8 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:
N o t e . — Annual
data are averages of weekly or monthly figures. Monthly
and weekly data are averages of daily figures unless otherwise noted and are
computed as follows: U.S. Govt, bonds, derived from average market
yields in table on p. A-28 on basis of an assumed 3 per cent, 20-year
bond. Municipal and corporate bonds, derived from average yields as
computed by Standard and Poor’s Corp., on basis of a 4 per cent, 20year bond; Wed. closing prices. Common stocks, derived from com
ponent common stock prices. A verage daily volume o f trading, normally
conducted 5 days per week for 5 l/ i hours per day, or 21l/ z hours per week.
In recent years shorter days and/or weeks have cut total weekly trading
to the following number of hours:
Stock Market Customer Financing:
1 Margin credit includes all credit extended to purchase or carry stocks
or related equity instruments and secured at least in part by stock (Dec.
1970 B u l l e t i n , p. 920). 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.
APRIL 1975 □ SECURITY MARKETS
A 29
SECURITY PRICES
Common stock prices
Period
Standard and Poor’s index
(1941-43=10)
U.S.
Govt.
(long
term)
State
and
local
60.52
67.73
68.71
62.80
57.45
Amer-
New York Stock Exchange
Bond prices
New York Stock Exchange index
(Dec. 31, 1965 = 50)
Volume of
trading in
Stock
Ex
change
total
index
(Aug.
(thousands of
shares)
1973 =
100)
NYSE AMEX
Indus
trial
Rail
road
Public
utility
Total
Indus Trans
porta Utility
trial
tion
Fi
nance
72.3
80.0
84.4
85.4
76.3
61.6 83.22 91.29
65.0 98.29 108.35
65.9 109.20 121.79
63.7 107.43 120.44
58.8 82.85 92.91
32.13
41.94
44.11
38.05
37.53
54.48
59.33
56.90
53.47
38.91
45.72
54.22
60.29
57.42
43.84
48.03
57.92
65.73
63.08
48.08
32.14
44.35
50.17
37.74
31.89
37.24
39.53
38.48
37.69
29.82
54.64
70.38
78.35
70.12
49.67
96.63 10,532
113.40 rl 5,381
129.10 16,487
103.80 16,374
79.97 13,883
3,376
4,234
4,447
3,004
1,908
1974—Mar............... 58.70
Apr............... 57.01
M ay.............. 56.81
June.............. 57.11
July............... 55.97
Aug............... 54.95
Sept............... 55.13
Oct................ 55.69
Nov............... 57.80
Dec............... 58.96
83.5
80.2
77.3
76.2
71.9
71.6
71.0
72.7
72.6
68.6
61.3
60.3
59.7
59.5
58.5
57.6
56.2
55.9
56.3
56.1
97.44
92.46
89.67
89.79
82.82
76.03
68.12
69.44
71.74
67.07
108.98
103.66
101.17
101.62
93.54
85.51
76.54
77.57
80.17
74.80
42.57
40.26
37.04
37.31
35.63
35.06
31.55
33.70
35.95
34.81
47.90
44.03
39.35
37.46
35.37
34.00
30.93
33.80
34.45
32.85
52.15
49.21
47.35
47.14
43.27
39.86
35.69
36.62
37.98
35.41
56.80
53.95
52.53
52.63
48.35
44.19
39.29
39.81
41.24
38.32
38.39
35.87
33.62
33.76
31.01
29.41
25.86
27.26
28.40
26.02
35.22
32.59
30.25
29.20
27.50
26.72
24.94
26.76
27.60
26.18
64.47
58.72
52.85
51.20
44.23
40.11
36.42
39.28
41.89
39.27
99.10
93.57
84.71
82.88
77.92
74.97
65.70
66.78
63.72
59.88
14,745
12,109
12,512
12,268
12,459
12,732
13,998
16,396
14,341
15,007
2,123
1,752
1,725
1,561
1,610
1,416
1,808
1,880
1,823
2,359
1975—Jan................ 59.70
Feb................ 60.27
Mar............... 59.33
70.9
74.1
70.9
56.4
56.6
56.2
72.56
80.10
83.78
80.50
89.29
93.90
37.31
37.80
38.35
38.19
40.37
39.55
38.56
42.48
44.35
41.29
46.00
48.63
28.12
30.21
31.62
29.55
31 .31
31.04
44.85
47.59
47.83
68.31
76.08
79.15
19,661 2,117
22,311 2,545
22,680 2,665
72.7
72.9
71.8
69.4
69.7
56.5
56.4
56.2
56.3
56.0
80.74
83.50
84.28
84.50
82.73
90.15
93.41
94.41
94.79
92.61
38.14
38,68
38.66
38.42
37.59
39.84
40.33
40.02
39.05
38.32
42.69
44.10
44.58
44.79
43.88
46.46
48.18
48.81
49.20
48.25
30.40
31.80
31.98
31.61
30.99
31 .07
31.45
31.43
31.00
30.23
46.33
47.58
47.93
48.54
47.31
76.78
77.53
78.61
80.83
79.54
18,568
26,014
24,439
22,375
18,297
1970.........................
1971.........................
1972..........................
1973.........................
1974.........................
Cor
porate
AAA
Total
Week ending—
1975—Mar.
1
8 ....
15........
22 . . . .
29 . . . .
60.00
59.82
59.81
59.14
58.54
2,112
2,625
3,030
2,919
2,082
For notes see opposite page.
STOCK MARKET CUSTOMER FINANCING
(In millions of dollars)
Margin credit at brokers and banks 1
Unregu-
Regulated 2
End of period
By source
Margin stock
Total
at brokers 4
By type
Brokers Banks
Convertible
bonds
Subscription
issues
Brokers Banks Brokers Banks Brokers Banks
1974—Jan.....................................
Feb.....................................
M ar....................................
Apr....................................
M ay...................................
June...................................
July....................................
Aug....................................
Sept....................................
Oct.....................................
Nov....................................
Dec....................................
6,343 5,323
6,462 5,423
6,527 5,519
6,567 5,558
6,381 5,361
6,297 5,260
5,948 4,925
5,625 4,672
5,097 c4,173
4,996 4,080
4,994 4,103
4,836 3,980
1975—Jan..................................... 4,934
Feb..................................... 5,099
For notes see opposite page.
4,086
4,269
Nonmargin
stock
credit at
banks
Margin
accts.
Cash
accts.
1,020
1,039
1,008
1,009
1,020
1,037
1,023
953
924
916
891
856
5,130
5,230
5,330
5,370
5,180
5,080
4,760
4,510
4,020
3,930
3,960
3,840
961
977
944
952
963
991
978
912
881
872
851
815
182
183
180
179
172
172
158
156
148
145
139
137
45
46
48
44
44
34
33
29
31
32
29
30
11
10
9
9
9
8
7
6
5
5
4
3
14
16
16
13
13
12
12
12
12
12
11
11
1,845
1,843
1,869
1,868
1,858
2,072
2,091
2,119
2,060
2,024
2,054
2,064
445
420
425
415
395
395
402
429
437
431
410
411
1,666
1,604
1,583
1,440
1,420
1,360
1,391
1,382
1,354
1,419
1,447
1,424
848
830
3,950
4,130
806
783
134
136
29
34
2
3
13
13
1,919
1,897
410
478
1,446
1,604
A 30
STOCK MARKET CREDIT; SAVINGS INSTITUTIONS □ APRIL 1975
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) l
1974—Feb...
Mar..
A p r..
M ay.
June.
July..
Aug..
Sept..
Oct...
Nov..
D ec..
Equity class (per cent)
Net
credit
status
End of period
80 or
more
70-79
60-69
50-59
40-49
Under
40
5,230
5,330
5,370
5,180
5,080
4,760
4,510
4,020
3,930
3,960
3,840
5.4
5.0
4.4
4.2
4.0
4.0
3.5
3.5
4.6
4.2
4.3
7.4
7.0
6.0
5.1
5.0
4.8
4.0
3.9
5.5
5.1
4.6
13.3
11.4
9.9
8.5
7.7
7.9
6.6
6.1
9.4
8.5
8.8
22.6
19.4
16.5
13.7
12.6
13.3
11.2
10.2
16.8
14.8
13.9
28.0
30.2
26.5
23.3
21.8
22.2
18.4
18.0
27.3
24.4
23.0
23.3
27.1
37.0
45.3
49.1
47.9
56.3
58.3
36.4
42.8
45.4
1975—Jan. . 3,950
Feb.. 4,130
5.6
5.9
7.3
7.2
13.5
14.6
24.6
25.4
28.1
28.5
21.2
18.4
i Note 1 appears at the bottom of p. A-28.
N o t e . —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.
Equity class of accounts
in debit status
Total
balance
(millions
60 per cent Less than of dollars)
or more 60 per cent
July......................
39.4
40.0
39.6
37.8
40.3
40.2
39.9
40.7
40.9
40.0
41.1
43.3
41.2
42.3
40.0
37.4
36.5
34.0
31.2
35.1
34.6
32.4
24.9
18.9
19.4
22.2
22.4
23.2
26.0
27.0
24.0
25.3
26.5
6,740
6,784
6,526
6,544
6,538
6,695
6,783
7,005
7,248
6,926
7,013
1975—Jan........................
Feb.......................
41. 1
42.2
39.3
40.1
19.8
17.8
7,185
7,303
1974—Feb.......................
N o t e .—Special miscellaneous accounts contain credit balances that
may be used by customers as the margin deposit required for additional
purchases. Balances may arise as transfers based on loan values of other
collateral in the customer’s margin account or deposits of cash (usually
sales proceeds) occur.
MUTUAL SAVINGS BANKS
(In millions of dollars)
Loans
End of period
Mort
gage
Other
Securities
U.S.
Govt.
State
and
local
govt.
Corpo Cash
rate
and
other1
Other
assets
Total
assets—
Total
liabili
ties
and
general
reserve
accts.
Depos
its
Mortgage loan
commitments 2
classified by maturity
(in months)
Other General
liabili reserve
ac
ties
counts
3 or
less
3-6
6-9
Over
9
Total
1971...............
19723.............
1973...............
1974...............
62,069
67,563
73,231
74,891
2,808
2,979
3,871
3,812
3,334
3,510
2,957
2,555
385
873
926
930
17,674
21,906
21,383
22,550
1,389
1,644
1,968
2,167
1,711 89,369
2,117 100,593
2,314 106,651
2,645 109,550
81,440
91,613
96,496
98,701
1,810
2,024
2,566
2,888
6,118
6,956
7,589
7,961
1,047
1,593
1,250
664
627
713
598
418
463 1,310 3,447
609 1,624 4,539
405 1,008 3,261
232
726 2,040
1974—J a n ....
F eb ....
M a r...
Apr---M ay...
June...
Ju ly ...
A ug....
Sept.. .
Oct---N ov....
Dec.r. .
73,440
73,647
73,957
74,181
74,011
74,281
74,541
74,724
74,790
74,835
74,913
74,891
4,161
4,584
4,825
4,425
4,388
4,274
4,311
4,031
4,087
3,981
4,226
3,812
2,925
2,846
2,851
2,852
2,750
2,758
2,650
2,604
2,574
2,525
2,553
2,555
936
942
934
951
893
880
884
879
876
870
877
930
21,623
21,923
22,302
22,366
22,241
22,324
22,383
22,292
22,218
22,190
22,201
22,550
1,686
1,618
1,634
1,601
1,656
1,651
1,402
1,334
1,303
1,303
1,406
2,167
2,312
2,316
2,373
2,347
2,355
2,488
2,487
2,519
2,573
2,608
2,633
2,645
107,083
107,877
108,876
108,722
108,295
108,654
108,660
108,383
108,420
108,313
108,809
109,550
96,792
97,276
98,557
98,035
97,391
98,190
97,713
97,067
97,425
97,252
97,582
98,701
2,665
2,919
2,595
2,943
3,173
2,688
3,144
3,475
3,089
3,158
3,291
2,888
7,626
7,681
7,724
7,744
7,731
7,776
7,803
7,841
7,906
7,904
7,936
7,961
1,171
1,232
1,302
1,214
1,129
1,099
990
949
932
775
724
664
587
562
525
584
608
602
586
496
382
374
398
418
439
998 3,196
407
952 3,153
413
929 3,168
994 3,193
401
400 1,014 3,151
328 1,001 3,031
316 1,076 2,968
417
977 2,839
904 2,668
450
360
792 2,301
317
743 2,182
232
726 2,040
1975—J a n .... 74,957
4,287
2,571
967 22,979
1,706
2,663 110,130
99,211
2,948
7,971
726
400
225
1 Also includes securities of foreign governments and international
organizations and nonguaranteed issues of U.S. Govt, agencies.
2 Commitments outstanding of banks in New York State as reported to
the Savings Banks Assn. of the State of New York. Data include building
loans.
3 Balance sheet data beginning 1972 are reported on a gross-of-valuation-reserves basis. The data differ somewhat from balance sheet data
previously reported by National Assn. of Mutual Savings Bank, which
620 1,971
were net of valuation reserves. For most items, however, the differences
are relatively small.
N o t e .— N A M S B data; figures are estimates for all savings banks in
the United States and differ somewhat from those shown elsewhere in
the B u l l e t in ; the latter are for call dates and are based on reports filed
with U.S. Govt, and State bank supervisory agencies.
APRIL 1975 □ SAVINGS INSTITUTIONS
A 31
LIFE INSURANCE COMPANIES
(In millions o f dollars)
Business securities
Governm ent securities
M ort
gages
Real
estate
Policy
loans
Other
assets
2 0 ,607
26,845
2 5.919
22,1 5 0
7 5 ,4 9 6
76,948
81,369
86,258
6 ,9 0 4
7 ,295
7 ,693
8,249
17,065
18,003
20,1 9 9
2 2 ,8 9 9
11,832
13,127
14,057
14,941
Total
assets
End o f period
Total
United
States
State and F o reig n 1
local
Total
Bonds
Stocks
1971................................................
1972...............................................
1973...............................................
197 4 ...............................................
222,102
239,730
252,436
263,817
11,000
11,372
11.403
11,890
4,455
4 ,5 6 2
4 ,328
4 ,3 9 6
3,363
3,367
3 .412
3 ^653
3,1 8 2
3,443
3.663
3; 841
99,8 0 5
112,985
117.715
119,580
79,1 9 8
86,140
9 1 .7 9 6
9 7 ,4 3 0
1973— D ec....................................
2 5 2,436
11,403
4 ,3 2 8
3 ,4 1 2
3,663
117,715
91,7 9 6
25,919
81,369
7,693
20,199
14,057
1974—Jan.....................................
Feb....................................
M ar...................................
A pr....................................
M a y ..................................
Ju n e..................................
July....................................
A ug...................................
Sept...................................
Oct....................................
N o v ...................................
D ec....................................
253.531
254;739
255,847
256,583
257.518
258;398
259,187
258,951
258,668
261,778
262,738
263,817
11.465
li; 5 3 5
11,766
11,594
11,606
11,617
11,675
11,725
11,718
11,748
11,820
11,890
4 .4 1 0
4; 429
4 ,5 9 5
4 ,3 1 7
4,3 1 8
4 ,2 9 0
4,301
4,3 3 8
4 ,3 0 6
4 ,3 1 9
4,363
4 .3 9 6
3.463
3:518
3,511
3,5 2 6
3,538
3,5 6 2
3,5 7 2
3 ,5 7 7
3,596
3.603
3,618
3,653
3 .592
3:588
3 ,660
3,751
3,750
3,765
3,8 0 2
3 ,8 1 0
3,816
3 .8 2 6
3,839
3,841
119.079
119.715
119,936
120,466
120,642
120,526
120,404
119,139
117,740
120.198
120,176
119,580
93.0 8 2
9 3 .672
94 ,0 3 7
9 5 ,0 1 0
95,721
9 5 ,9 3 4
96,507
9 6 ,7 2 3
96,861
9 7 ,5 1 5
92 ,892
9 7 ,4 3 0
2 5 .9 9 7
26:043
2 5,899
2 5 ,456
24,921
2 4 ,5 9 2
23,8 9 7
2 2 ,4 1 6
20,8 7 9
22 ,683
2 2 ,2 8 4
2 2 ,150
81 .4 9 0
81,745
81,971
82,469
8 2 ,750
83,228
83,697
8 4 ,1 1 9
84,509
8 5 ,0 5 4
85,529
86,258
7,816
7,825
7,831
7,7 9 5
7 ,8 4 0
7,8 7 8
7 ,9 2 4
7 ,9 9 8
8,055
8 ,0 8 7
8,143
8 ,249
20 ,2 4 2
20 ,382
20,538
2 0 ,8 3 0
2 1 ,0 6 7
21,321
21,581
2 1 ,8 8 8
2 2 ,2 0 2
22 ,5 0 3
2 2 ,7 1 0
22 ,899
13,439
13,537
13,805
13,429
13,613
13,828
13,906
14,088
14,444
14,188
14,360
14,941
Figures are annual statem ent asset values, with bonds carried on an
l
Issues o f foreign governments and their subdivisions and bonds o f
amortized basis and stocks at year-end market value. Adjustm ents for
the International Bank for R econstruction and D evelopm ent.
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total in
N o t e .— Institute o f Life Insurance estimates for all life insurance
“ Other assets.”
com panies in the United States.
SAVINGS AND LOAN ASSOCIATIONS
(In m illions o f dollars)
Liabilities
A ssets
End o f period
M ort
gages
Invest
ment
secur
itie s1
Cash
18,185
2 ,8 5 7
21,574
2,781
2 1 ,055
23,235
Other
Total
assets—
Total
liabilities
10,731
12,590
19,117
23,075
M ortgage
loan com
mitments
outstanding
at end o f
period4
Savings
capital
N et
w orth2
Bor
rowed
m oney 3
Loans
in
process
206,023
2 4 3 ,127
271,905
2 9 5 ,616
174,197
206,764
226,968
242,914
13,592
15,240
17,056
18,435
8 ,9 9 2
9 ,7 8 2
17,172
2 4 ,8 2 4
5,0 2 9
6 ,209
4 ,6 6 7
3,205
4 ,2 1 3
5 ,132
6 ,0 4 2
6 ,2 3 8
7,328
11,515
9 ,5 2 6
7 ,4 5 4
Other
1971........................................
1972........................................
19735......................................
1974........................................
174,250
206,182
2 31,733
2 49,306
1974— Feb ............................
M ar...........................
Apr............................
M a y ..........................
Ju ne..........................
Ju ly...........................
A ug...........................
Sept...........................
O ct.............................
N o v ...........................
D e c ............................
23 4,052
23 6,136
238,645
241,263
2 4 3,400
2 4 5,135
246,713
247,624
2 48,189
248,711
249,306
2 3 ,3 5 2
23,993
2 3 ,5 4 4
23 ,7 0 5
23,003
2 3 ,0 5 2
22,081
2 1 ,1 6 6
2 2 ,1 2 6
23,2 4 9
23,235
19,788
2 0 ,316
2 0 ,7 8 7
21,421
2 1 ,6 1 4
2 1 ,9 2 6
22,361
22,758
2 3 ,016
2 3 ,306
23,075
2 7 7 ,1 9 2
28 0 ,4 4 5
282,976
286,389
2 8 8 ,0 1 7
290,113
29 1 ,1 5 5
291,548
293,331
29 5 ,2 6 6
29 5 ,6 1 6
230,971
235,136
234,918
235,429
238 ,1 1 4
237,631
236,4 7 2
237,8 7 7
2 3 8 ,3 0 4
2 3 9 ,5 3 0
2 42,914
17,571
17,435
17,709
18,019
17,838
18,101
18,377
18,201
18,444
18,674
18,435
16,503
16,725
18,159
19,355
2 0 ,3 4 7
21,7 0 8
22,891
2 4 ,1 3 6
2 4 ,5 4 4
2 4 ,5 5 0
2 4 ,8 2 4
4 ,2 9 4
4 ,4 8 1
4 ,7 9 6
5 ,038
5 ,033
4 ,8 6 7
4 ,5 8 4
4 ,2 2 6
3 ,8 0 9
3 ,4 4 4
3,2 0 5
7,8 5 3
6 ,6 6 8
7 ,3 9 4
8 ,5 4 8
6 ,6 8 5
7 ,8 0 6
8 ,831
7 ,1 0 8
8 ,2 3 0
9 ,0 6 8
6 ,2 3 8
10,731
12,006
12,918
1 2,480
11,732
10,844
9 ,8 5 1
9 ,1 2 6
8 ,1 2 7
7 ,7 2 3
7 ,4 5 4
1975— Jan.............................
F eb.*........................
2 4 9 ,734
250,831
25 ,3 8 2
26,969
23,338
2 3 ,7 6 4
29 8 ,4 5 4
301,564
246,1 8 2
249 ,4 5 9
18,585
18,816
2 3 ,3 9 8
2 1 ,9 4 4
3 ,0 2 2
3,0 1 2
7 ,2 6 7
8 ,3 3 3
7 ,8 8 7
8,785
1 Excludes stock o f the Federal H om e Loan Bank Board. Com pensating
changes have been made in “ Other assets.”
2 Includes net undistributed incom e, which is accrued by m ost, but not
all, associations.
3 Advances from FH LBB and other borrowing.
4 D ata com parable with those shown for mutual savings banks (on
opposite page) except that figures for loans in process are not included
above but are included in the figures for mutual savings banks.
5 Beginning 1973, participation certificates guaranteed by the Federal
H om e Loan M ortgage C orporation, loans and notes insured by the
Farmers H om e A dm inistration, and certain other Govt.-insured mortgagetype investments, previously included in m ortgage loans, are included
in other assets. The effect o f this change was to reduce the m ortgage
total by about $0.6 billion.
A lso, G N M A -guaranteed, m ortgage-backed securities o f the pass
through type, previously included in “ C ash” and “ Investm ent securities”
are included in “ Other assets.” These am ounted to about $2.4 billion at
the end o f 1972.
N o t e .— FH LBB data; figures are estim ates for all savings and loan
assns. in the U nited States. D ata are based on m onthly reports o f insured
assns. and annual reports o f noninsured assns. D ata for current and
preceding year are preliminary even when revised.
A 32
FEDERAL FINANCE □ APRIL 1975
FEDERAL FISCAL OPERATIONS: SUMMARY
(In m illions o f dollars)
U.S. budget
Means of financing
Borrowings from the public
Period
Receipts Outlays
Surplus
Less: Invest
Public
or
ments by Govt.
Trea
accouints i
Less: Equals:
debt Agency
deficit
sury
securi securi
Special Total
operat
(-)
notes 2
ties
ties
ing
Special Other
balance
issues
Fiscal year:
197!...................
197 2
197 3
197 4
188,392
208,649
232,225
264,932
211,425
231,876
246,526
268,392
Half year:
1973—Jan.-June
July-Dee.
1974—Jan.-June
July-Dee.
126,164
124,256
140,679
139,870
127,947 -1 ,7 8 4 8,843
130,362 -6 ,1 0 6 11,756
138,032
2,647 5,162
153,399 -13,591 18,429
Month:
1974—Fe b
Mar.........
Apr..........
M ay........
June........
July.........
Aug........
Sept.........
Oct..........
Nov.........
Dec.........
20,224 r21,039
16,818 22,905
29,657 22,273
19,243 23,981
31,259 24,172
20,939 24,411
23,620 25,408
28,377 24,712
19,633 26,460
22,292 24,965
24,946 27,442
1975—Ja n
Feb..........
25,020
19,975
28,934
26,200
Less: Cash and
monetary assets
-23,033
-23,227
-14,301
-3 ,4 6 0
27,211
-3 4 7 6,616
29,131 -1,269 6,796
30,881
216 11,712
903 13,673
16,918
Other
19,448
-7 1 0 3,587
710
19,442
1,108 6,003
1,362
19,275
2,459 -1 ,6 1 3 -4,129
3,009 -3 ,4 1 7
898 -2 ,0 6 3
801
1,623
109
1,140
5,716
5,376
8,297
2,840
577
845
295
150
1,889
1,503
6,014 - 2,202
-3 ,0 0 4 -1 ,2 1 5
14,794 -3,228
*•-815 2,503
-6,086 3,813
7,384 -2 ,5 9 7
-4,739 2,773
385
7,087
-3,472 1,109
-1,787 6,447
3,666 -3 2 6
-6,827 -1 ,2 4 2
-2,673 5,139
-2,496 7,300
-15 2,489
394 -155
37
-9 3
- 2 8 2,947
29 4,178
-126
-858
-5 6 4,133
-167 -1,311
-242 -2 ,0 5 3
-1 7
653
-3 8 2,276
159
52
35
-160
4,309
-2 ,5 0 2
198
-2 5
250
-1 5 2
-31
-9 0
-3 ,8 8 6
1,644
2,283
569
721
4,500
5,077
-3,914
-6,225
-2 3 -2,1 7 3
-306 1,224
-4 2
-495
3,667
4,535
1,475
5,571
-661
478
426
-646
Other
means
of
financ
ing,
net 3
-2 1 1
121
8
-9 3
1,305
-319 -2 ,4 2 9
1,089
231
248 -4 ,1 8 3
-2,877
^—101 *•- 2,003
191 2,657
690
3,125
1,319
-4 3 8
-5 ,0 3 2 - 1,120 —1 ,423
2,711
239 -2 5 2
-658 -1 ,5 3 4
-2 ,7 0 5
- 1,012
83 —1 ,425
3,244
797 —194
-338
-6 ,4 4 5
-6 7 7
816
96 -9 1 5
2,874
268
561
-5 8
-2 ,3 5 9
319
-132
508
801
Selected balances
Treasury operating balance
End
of
period
F.R.
Banks
Tax
and
loan
accounts
Other
deposi
taries4
Borrowing from the public.
Total
Public
debt
securities
Agency
securities
Less:
Investments of
Govt, accounts 1
Special
issues
Less :
Special
notes 2
Equals:
Total
Memo:
Debt of
Govt.sponsored
corps.—
Now
private 5
Fiscal year:
197 1
197 2
197 3
197 4
1,274
2,344
4,038
2,919
7,372
7,934
8,433
6,152
109
139
106
8,755
10,117
12,576
9,159
398,130
427,260
458,142
475,060
12,163
10,894
11,109
12,012
82,740
89,536
101,248
114,921
22,400
24,023
24,133
25,273
825
825
825
825
304,328
323,770
343,045
346,053
37,086
41,814
51,325
65,411
Calendar year:
197 3
197 4
2,543
3,113
7,760
2,749
70
70
10,374
5,932
469,898
492,664
11,586
11,367
106,624
117,761
24,978
25,423
825
( 6)
349,058
360,847
59,857
Month:
1974—Fe b
M ar.. . .
Apr.......
M ay....
June...,
J u ly ....
Aug---Sept___
Oct.......
N ov.. ..
Dec.
2,017
1,372
2,814
3,134
2,919
3,822
3,304
3,211
789
1,494
3,113
5,579
6,915
8,576
3,226
6,152
2,544
2,049
5,384
1,381
rl ,571
2,745
69
69
89
470,687
474,500
471,903
474,675
475,060
6475,344
481,792
481,466
480,224
485,364
492,664
11,581
11,975
12,012
11,984
12,012
11,895
11,831
11,664
11,422
11,404
11,367
108,044
107,889
107,796
110,743
114,921
114,063
118,196
116,885
114,832
115,485
117,761
25,276
25,328
25,363
25,152
25,273
25,471
25,446
25,696
25,544
25,513
25,423
825
825
825
825
825
( 6)
70
7,665
8,356
11,480
6,448
9,159
6,454
5,443
8,687
2,241
r3,066
5,928
348,123
352,433
349,931
349,939
346,053
347,706
349,980
350,549
351,270
355,770
360,847
59,282
59,897
61,151
62,650
65,411
68,243
69,951
73,068
75,343
75,706
76,459
1975—Ja n
Feb......
3,541
2,884
2,115
410
220
220
5,876
3,514
494,139
499,710
11,343
11,037
115,588
116,812
25,380
24,886
364,514
369,049
76,921
91
92
71
1 With the publication of the Oct. 1974, Federal Reserve B u l l e t in ,
these series have been corrected (beginning in fiscal year 1971) to exclude
special issues held by the Federal home loan banks and the General
Services Adm. Participation Certificate Trust, which are not Govt, ac
counts.
2 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.
3 Includes accrued interest payable on public debt securities, deposit
funds, miscellaneous liability and asset accounts, and seigniorage.
4 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).
5 Includes debt of Federal home loan banks, Federal land banks, R.F.K.
Stadium Fund, FNMA (beginning Sept. 1968), and Federal intermediate
credit banks and banks for cooperatives (both beginning Dec. 1968).
6 Beginning July 1974, public debt securities excludes $825 million o f
notes issued to International Monetary Fund to conform with Office of
Management and Budget’s presentation of the budget.
N ote .— H a lf years may not add to fiscal year totals due to revisions in
series that are not yet available on a m onthly basis.
APRIL 1975 o FEDERAL FINANCE
A 33
FEDERAL FISCAL OPERATIONS: DETAIL
(In m illions o f dollars)
Budget receipts
Individual income taxes
Period
Total
Pres.
Elec N on
With tion with Re
held Cam held funds
paign
Fund1
Fiscal year:
197 1
197 2
197 3
197 4
188,392
208,649
232,225
264,932
76,490
83,200
98,093
Half year:
1973—Jan.-June
July-Dee.
1974—Jan.-June
July-Dee.
Month:
1974—Fe b
Mar........
Apr........ .
May........
June.......
July........
Aug........
Sept........
Oct.........
Nov........
Dec.........
1975—Ja............n
Feb.........
Social insurance taxes
and contributions
Corporation
income taxes
Net
total
Employment
taxes and
Excise
Gross
contribution2 Un- Other
taxes
re
Re
empl. net
Net
ceipts funds
insur. re
total
Pay Selfceipts 3
roll empl.
taxes
Cus Estate Misc.
toms and
re
gift ceipts4
112,064
24 ,2 6 2 14,522
2 5 , 6 7 9 14 ,1 4 3
2 7 , 0 1 7 21,866
30,812 23,952
86,230 30,320
94,737 34,926
103,246 3 9 , 0 4 5
118,952 4 1 , 7 4 4
3,535
2,760
2,893
3,125
39,751
44,088
52,505
62,886
1,948
2,032
2,371
3,008
3,673
4,357
6,051
6,837
3,206
3,437
3,614
4 ,0 5 1
48,578
53,914
64,542
76,780
16,614
15,477
16,260
16,844
2,591
3,287
3,188
3,334
3,735
5,436
4,917
5,035
3,858
3,633
3,921
5,368
126,164
124,256
140,679
139,807
52,037
52,964
59,103
61,377
21,233 21,179
999
6,207
24,605 22,953
7,099 1,016
52,094
58,172
60,782
67,460
23,730
16,589
25,156
18,247
1,434
1,494
1,6 31
2,016
30,013
29,965
32,919
34,418
2,206
2,808
25 4
3,616
2,974
3,862
2,914
1, 841
1,967
2,082
2,187
37,657
35,109
41,672
39,774
8 ,016
8,966
7,878
8,761
1,637
1,633
1, 70 1
1,958
2,584
2,514
2,521
2,284
1 ,8 6 1
2,768
2,601
3,341
20,224
16 , 8 1 8
29,657
19,243
31,259
20,939
23,620
28,377
19,633
22,292
24,946
9,503
9,662
9,946
10 , 0 8 3
1 0, 611
10,227
10 , 2 2 3
9,754
10,106
10,638
10,428
9 45
2,186
11,118
1,204
4,077
957
491
4,323
561
305
461
8,599
3,219
14,764
5,641
1 4, 231
10,806
10,485
13,947
10,590
111 1 0 , 8 3 2
9 0 10 , 7 9 9
1,066
5,887
5,893
1,318
9,269
1,796
! ,084
6,082
1,717
7,080
5,059
4,390
7,196
4,757
5,005
7,813
5,428
4,558
6,633
4,982
21 4
228
1,603
311
281
" l4
762
89
346 8 , 4 0 0
338 5 , 7 2 1
351 6 , 8 9 6
339 1 0 , 0 3 6
329 5 , 3 8 6
358 5 , 7 8 1
368 9 , 5 4 4
389 6 , 1 1 9
363 5 , 1 4 2
353 7 , 7 4 8
356 5 , 4 4 1
1,315
6,458
248
338
430
218
237
310
256
435
511
314
190
1,275
1, 39 1
1,423
1,517
1,415
1,465
1 ,4 0 1
1,474
1,489
239
2 77
28 6
295
301
325
355
305
347
319
307
423
465
371
437
370
418
453
352
37 0
35 0
341
42 9
37 7
60 2
343
517
607
540
543
578
77 3
301
2 5 ,0 2 0 10,252
19,975 10,957
5,366
1,046
132 1 5 , 4 8 7
4,264 7,747
1,745
1,275
557
49 6
4,802
7,670
223
225
245
732
4 02
352
1,3 51
1,277
307
260
385
399
629
535
1,8 51
8,631
6,313
5,651
462
378
229
130
78
1,111
201
24 0
761
96
552
2,190
18
418
1,363
62
221
5,673
8,979
1,211
Budget outlays
Period
Total
N a
tional
de
fense
Intl.
affairs
Space
re
search
Agri
cul
ture
Com
N at
ural
merce
and
re
sources transp.
Commun.
deve
lop.
and
hous
Educa Health
and
tion
and
wel
man
fare
power
Gen
eral
reve
nue
shar
ing
Intragovt.
trans
ac
tions5
Vet
erans
Inter
est
Gen
eral
govt.
10,747
12 , 0 0 4
13,367
13,612
20,584
22,836
28,096
29,122
4,5
5,519
6,491
6,774
6 6,636
6,106
6,174
4,019
3,032
3,074
3,082
ing
Fiscal year:
197 2
197 3
197 4
19757..................
231,876
246,526
268,392
304,445
78,336
76,023
79,387
87,729
3,786
3,132
3,527
4,103
3,422
3,311
3,252
3,272
7, 06 1
6,051
5,156
2,729
3,759
559
-1,109
3,128
11,197
12,505
12,561
13,400
4,216
4,162
5,184
5,667
Half year:
1973—Jan.-June,
July-Dee..
1974—Jan.-June.
July-Dee..
127,947
130,362
138,032
153,339
40,694
37,335
42,057
42,553
1, 4 9 3
1,567
1,910
1,807
1,635
1,501
1,752
1,596
1,435
3,472
1, 6 8 4
42 7
230
764
-1,782
2,162
6,306
7,387
5,174
8,302
1,525
3,215
1, 96 9
4,787
5,690
4,772
5,809
5,103
48,130
48,950
56,619
62 , 1 8 1
6,264
6,518
6,848
7,838
12 , 2 1 7
13 ,4 9 3
14,655
15,320
2,650
3,112
3,403
3,792
21,030
22,905
22,273
23,981
24,172
24,411
25,408
24,712
26,460
24,965
27,442
6,509
6,751
7,243
8,062
5,862
6,905
6,877
7,652
7,673
7,584
224
345
336
312
402
369
2 60
398
62
373
342
231
252
293
278
447
216
2 47
267
281
297
288
138
205
89
313
183
-60
-61
19
358
-155
326
759
-1 ,6 1 8
428
-865
498
514
728
280
-474
616
363
746
740
875
1,574
1, 0 9 9
2,257
1, 1 6 3
1,246
1 ,1 47
1, 39 3
198
263
373
352
452
693
773
819
752
850
899
9 32
1,036
925
662
1,270
854
925
837
794
837
856
8,979
9,310
9,505
10,087
9,675
10,060
9,925
1, 0 8 8
1,194
1,165
1,180
1 ,0 17
1, 25 8
1,236
1 ,1 47
10,282
10 , 6 4 5
11,245
1,220
2,466
2,508
2,455
2,516
2,308
2,525
2,477
2,721
2,433
I ,341
1,636
2,688
2,475
520
499
586
498
655
4 66
727
731
529
529
810
28,934
7,307
274
298
806
650
915
1,1 5 7
1, 22 7
1 1, 6 9 7
1,39 9
2,538
489
Month:
1974—Fe b
Mar.........
Apr..........
M ay........
June.........
July.........
Aug.........
Sept.........
Oct...........
N o v ............
Dec..........
1975—Ja.............n
6,686
1 Co ll ectio n s o f these receipts, totaling $2,427 mil lio n for fiscal year
1973, were included as part o f no nw ith he ld in c o m e taxes prior to Feb.
1974.
2 Old-age, disability, and hospital insurance, and Railroad Retirement
acc ounts.
3 Supp lem en tar y m edical insurance pr em iu m s and Federal e m p lo y e e
retirement contributions.
4 D e p o s i ts o f earnings by F. R. Banks and ot her misc ell an eo us receipts.
5 Con sists o f G o v t, con trib ut io ns for e m p lo y e e retirement and o f interest
received by trust funds.
10 ,1 9 8 8 1 , 5 3 8
10,822 91,343
10,581 1 0 5 , 5 9 7
1 1 , 5 3 7 126 , 3 5 3
10,022
1,540
1
1 ,5 3 8
7
1,533
4
1,5 28
-7,858
-8,379
-9,893
-1 0 ,7 1 7
-4 ,3 4 0
-4 ,7 5 6
-5,141
-5,551
-677
-898
-867
-763
-1,007
-967
-778
-1,026
-961
-791
-1,027
-1,350
6 C on ta in s retroactive p ay m en ts o f $2,617 million for fiscal 1972.
7 Estimate presented in B u d g e t o f th e U .S . G o v e r n m e n t, l is c a l Y e a r
1 9 7 5 . Breakdown d oc s not add to total because special a llo w an ce s for
contingenci es, Federal pay increase (excluding De pt , o f Defense), and
acceleration o f energy research and d ev elo p m en t, totaling $1,561 million,
are not included.
N ote.— H alf years may not add to fiscal year totals due to revisions in
series that are not yet available on a m onthly basis.
A 34
U.S. GOVERNMENT SECURITIES □ APRIL 1975
GROSS PUBLIC DEBT, BY TYPE OF SECURITY
(In billions o f dollars)
Public issues (interest-bearing)
End of period
Total
gross
public
debt 1
Marketable
Con
vert
ible
Bonds 2 bonds
Total
Total
Certifi
Bills
cates
Nonmarketable
Special
issues 5
Foreign Savings
Total 3 issues 4 bonds
and
notes
1968—Dec.
1969—Dec.
1970—Dec.
358.0
368.2
389.2
296.0
295.2
309.1
236.8
235.9
247.7
75.0
80.6
87.9
76.5
85.4
101.2
85.3
69.9
58.6
2.5
2.4
2.4
56.7
56.9
59.1
4.3
3.8
5.7
52.3
52.2
52.5
59.1
71.0
78.1
1971—Dec..
1972—Dec.
1973—Dec.
424.1
449.3
469.9
336.7
351.4
360.7
262.0
269.5
270.2
97.5
103.9
107.8
114.0
121.5
124.6
50.6
44.1
37.8
2.3
2.3
2.3
72.3
79.5
88.2
16.8
20.6
26.0
54.9
58.1
60.8
85.7
95.9
107.1
1974—Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
Dec.
474.5
471.9
474.7
475.1
475.3
481.8
481.5
480.2
485.4
492.7
364.2
361.7
361.5
357.8
359.7
362.0
362.7
363.9
368.2
373.4
273.6
270.5
269.6
266.6
268.8
272.1
272.6
273.5
277.5
282.9
111.9
107.3
107.9
105.0
107.3
110.6
111.1
112.1
114.6
119.7
126.1
127.6
128.4
128.4
128.4
127.7
127.7
127.7
129.6
129.8
35.6
35.5
33.2
33.1
33.0
33.9
33.8
33.8
33.3
33.4
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
2.3
88.3
89.0
89.6
89.0
88.7
87.6
87.8
88.1
88.4
88.2
25.2
25.7
26.0
25.0
24.4
23.2
23.2
23.1
23.1
22.8
61.6
61.9
62.1
62.4
62.7
62.8
63.0
63.3
63.6
63.8
108.5
108.4
111.3
115.4
114.6
118.7
117.4
115.3
115.9
118.2
1975—Jan..
Feb.
Mar.
494.1
499.7
509.7
377.1
381.5
392.6
286.1
289.8
300.0
120.0
123.0
124.0
131.8
132.7
141.9
33.3
34.1
34.1
2.3
2.3
2.3
88.8
89.4
90.4
23.0
23.3
24.0
64.2
64.5
64.8
116.0
117.2
116.0
1 Includes non-interest-bearing debt (of which $616 million on Feb. 28,
1975, 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): despositary bonds, retirement plan
bonds, Rural Electrification Administration bonds, State and local govern
ment bonds, and Treasury deposit funds.
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
1968—Dec................
1969—Dec................
1970—Dec................
358.0
368.2
389.2
76.6
89.0
97.1
52.9
57.2
62.1
1971—Dec................
1972—Dec................
1973—Dec................
424.1
449.3
469.9
106.0
116.9
129.6
1974—Feb................
Mar...............
Apr................
May ..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec................
470.7
474.5
471.9
474.7
475.1
475.3
481.8
481.5
480.2
485.4
492.7
1975—Jan.................
494. 1
End of
period
Foreign
and
inter
national 1
Other
misc.
inves
tors 2
23.3
29.0
29.1
14.3
11.2
20.6
21.9
25.0
19.9
54.4
57.7
60.3
18.8
16.2
16.9
46.9
55.3
55.6
15.6
17.0
19.3
30.7
30.4
30.1
29.2
28.3
28.8
29.2
29.3
28.8
28.7
29.2
60.8
61.1
61.4
61.7
61.9
62.2
62.3
62.5
62.8
63.2
63.4
17.0
17.3
17.8
18.3
18.8
19.4
20.3
20.8
21.0
21.1
21 .5
53.6
54.9
55.9
57.3
57.7
56.9
56.0
56.0
56.6
58.3
58.4
21.2
20.0
19.7
18.5
17.3
18.8
19.0
19.5
20.3
20.1
22.4
30.6
63.7
22.6
61.5
20.6
Mutual
savings
banks
Insur
ance
com
panies
Other
corpo
rations
State
and
local
govts.
228.5
222.0
229.9
66.0
56.8
62.7
3.8
3.1
3.1
8.4
7.6
7.4
14.2
10.4
7.3
24.9
27.2
27.8
51.9
51.8
52.1
70.2
69.9
78.5
247.9
262.5
261.7
65.3
67.7
60.3
3.1
3.4
2.9
7.0
6.6
6.4
11.4
9.8
10.9
25.4
28.9
29.2
131.3
131.2
131.1
133.9
138.2
137.5
141.6
140.6
138.4
139.0
141.2
78.2
79.5
80.0
81.4
80.5
78.1
81.1
81.0
79.4
81.0
80.5
261.1
263.8
260.7
259.4
256.4
259.7
259.0
259.8
262.5
265.3
271.0
58.2
59.5
56.8
54.8
53.2
53.9
53.0
52.9
53.5
54.5
56.5
2.8
2.8
2.7
2.6
2.6
2.6
2.6
2.5
2.5
2.5
2.5
6.0
6.1
5.9
5.8
5.9
5.7
5.7
5.7
5.9
5.9
6.1
10.9
11.7
10.5
11.2
10.8
11.3
11.0
10.5
11.2
11.0
11 .0
139.0
81.3
273.8
54.5
2.6
6.2
11.5
1 Consists of investments of foreign and international accounts in
the United States.
2 Consists of savings and loan assns., nonprofit institutions, cor
porate pensions trust funds, and dealers and brokers. Also included
are certain Govt, deposit accounts and Govt.-sponsored agencies.
N o t e .— 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 B u l l e t in . 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. Beginning in July 1974, total gross public debt includes Federal
Financing Bank bills and excludes notes issued to the IMF ($825 million).
APRIL 1975 □ U.S. GOVERNMENT SECURITIES
A 35
OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY
(Par value, in millions of dollars)
Within 1 year
Type of holder and date
All holders:
1972—Dec.
1973—Dec.
1974—Dec.
1975—Jan.
Feb.
Total
Total
Bills
Other
1-5
years
5-10
years
10-20
years
Over
20 years
31........................................................
31........................................................
31........................................................
31........................................................
28........................................................
269,509
270,224
282,891
286,133
289,827
130,422
141,571
148,086
149,383
154,782
103,870
107,786
119,747
121,044
122,995
26,552
33,785
28,339
28,339
31,787
88,564
81,715
85,311
87,339
85,181
29,143
25,134
27,897
27,894
27,494
15,301
15,659
14,833
14,795
15,508
6,079
6,145
6,764
6,722
6,863
U.S. Govt, agcncies and trust funds:
1972—Dec. 31................................................
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Jan. 31................................................
Feb. 28................................................
19,360
20,962
21,391
21,374
20,888
1,609
2,220
2,400
2,550
2,481
674
631
588
640
512
935
1,589
1,812
1,910
1,969
6,418
7,714
7,823
7,737
7,957
5,487
4,389
4,721
4,643
3,980
4,317
5,019
4,670
4,672
4,802
1,530
1,620
1,777
1,773
1,667
Federal Reserve Banks:
1972—Dec. 31................................................
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Jan. 31................................................
Feb. 28................................................
69,906
78,516
80,501
81,344
81,086
37,750
46,189
45,388
45,575
46,956
29,745
36,928
36,990
37,076
35,909
8,005
9,261
8,399
8,499
11,047
24,497
23,062
23,282
23,797
21,377
6,109
7,504
9,664
9,764
10,326
1,414
1,577
1,453
1,457
1,476
136
184
713
751
950
Held by private investors:
1972—Dec. 31................................................
1973—Dec. 31................................................
1974—Dec. 31................................................
1975—Jan. 31................................................
Feb. 28................................................
180,243
170,746
180,999
183,415
187,853
91,063
93,162
100,298
101,258
105,345
73,451
70,227
82,168
83,328
86,574
17,612
22,935
18,130
17,930
18,771
57,649
50,939
54,206
55,805
55,847
17,547
13,241
13,512
13,487
13,188
9,570
9,063
8,710
8,666
9,230
4,413
4,341
4,274
4,198
4,246
Commercial banks:
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Jan. 31.........................................
Feb. 28.........................................
52,440
45,737
42,755
41,372
43,756
18,077
17,499
14,873
13,057
14,487
10,289
7,901
6,952
5,287
5,978
7,788
9,598
7,921
7,770
8,509
27,765
22,878
22,717
23,251
23,735
5,654
4,022
4,151
4,103
4,502
864
1,065
733
718
736
80
272
280
244
296
Mutual savings banks:
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Jan. 31........................................
Feb. 28........................................
2,609
1,955
1,477
1,480
1,543
590
562
399
292
330
309
222
207
126
128
281
340
192
166
202
1,152
750
614
678
660
469
211
174
203
207
274
300
202
197
199
124
131
88
110
147
Insurance companies:
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Jan. 31.........................................
Feb. 28.........................................
5,220
4,956
4,741
4,804
4,824
799
779
722
743
652
448
312
414
447
355
351
467
308
296
297
1,190
1,073
1,061
1,075
1,296
976
1,278
1,310
1,328
1,214
1,593
1,301
1,297
1,312
1,340
661
523
351
346
321
Nonfinancial corporations:
1972—Dec. 31.........................................
1973—Dec 31.........................................
1974—Dec. 31.........................................
1975—Jan. 31........ ................................
Feb. 28........................................
4,948
4,905
4,246
4,364
4,407
3,604
3,295
2,623
2,340
2,649
1,198
1,695
1,859
1,643
1,812
2,406
1,600
764
697
837
1,198
1,281
1,423
1,778
1,519
121
260
115
150
169
25
54
26
49
25
1
15
59
48
44
Savings and loan associations:
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Jan. 31........................................
Feb. 28........................................
2,873
2,103
1,663
1,664
1,701
820
576
350
323
419
498
121
87
83
148
322
455
263
240
271
1,140
1,011
835
866
861
605
320
282
282
238
226
151
173
169
166
81
45
23
25
18
State and local governments:
1972—Dec. 31........................................
1973—Dec. 31........................................
1974—Dec. 31.........................................
1975—Jan. 31........................................
Feb. 28.........................................
10,904
9,829
7,864
8,552
9,015
6,159
5,845
4,121
4,867
5,417
5,203
4,483
3,319
4,057
4,747
956
1,362
802
810
670
2,033
1,870
1,796
1,681
1,756
816
778
815
814
609
1,298
1,003
800
855
917
598
332
332
334
316
101,249
101,261
118,253
121,178
122,605
61,014
64,606
77,210
79,636
81,390
55,506
55,493
69,330
71,686
73,405
5,508
9,113
7,880
7,950
7,985
23,171
22,076
25,760
26,476
26,018
8,906
6,372
6,664
6,607
6,249
5,290
5,189
5,479
5,365
5,846
2,868
3,023
3,141
3,093
3,102
All others:
1972—Dec.
1973—Dec.
1974—Dec.
1975—Jan.
Feb.
31........................................
31........................................
31.........................................
31.........................................
28........................................
N o t e .—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) 5,563 commercial banks, 476 mutual savings
banks, and 733 insurance companies combined, each about 90 per cent;
(2) 462 nonfinancial corporations and 486 savings and loan assns., each
about 50 per cent; and (3) 503 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 36
U.S. GOVERNMENT SECURITIES □ APRIL 1975
DAILY-AVERAGE DEALER TRANSACTIONS
( P a r v a lu e , in m illio n s o f d o lla rs)
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
June.............................
July...............................
Aug..............................
Sept..............................
Oct...............................
Nov..............................
Dec...............................
4,229
3,697
3,338
3,542
3,084
2,566
3,097
4,114
3,543
3,977
4,111
3,192
2,814
2,682
2,645
2,549
2,114
2,407
3,327
2,802
2,872
3,126
402
450
438
693
385
348
389
472
498
635
550
561
369
173
133
110
66
238
265
193
384
369
74
64
45
72
41
38
64
50
50
86
67
795
744
614
711
693
490
554
683
607
560
671
1,058
892
836
905
759
685
876
1,351
1,087
1,049
1,196
1,299
1,071
951
991
877
681
789
1,022
928
1,144
1,120
1,077
991
937
936
755
710
878
1,058
920
1,224
1,124
1,019
733
710
861
978
1,044
856
1,227
1,150
1,186
1,087
1975—Jan................................
Feb...............................
5,415
5,770
3,495
3,353
1,514
1,521
303
709
104
187
887
698
1,549
2,044
1,503
1,511
1,478
1,518
1,244
1,233
1974—Feb...............................
Mar..............................
Apr...............................
Week ending—
1975—Feb.
5.......................
12.......................
19.......................
26.......................
7,439
6,358
5,528
4,646
3,453
3,763
3,499
2,794
2,334
1,432
1,271
1,256
1,262
905
635
479
390
259
123
117
943
819
660
511
2,683
2,362
1,829
1,593
1,954
1,637
1,551
1,187
1,859
1,540
1,488
1,355
1,313
1,139
1,466
1,165
Mar.
5.......................
12.......................
19.......................
26.......................
4,090
4,721
4,271
4,861
2,606
3,355
2,443
2,835
1,116
812
1,127
1,085
290
463
636
461
77
92
65
480
608
749
622
686
1,145
1,261
1,025
1,472
1,112
1,360
1,204
1,133
1,225
1,351
1,419
1,570
885
932
845
1,130
N o t e .—The transactions data combine market purchases and sales of
U.S. Govt, securities dealers reporting to the F.R. Bank of N e w 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)
1 Since Jan. 1972 has included transactions of dealers and brokers in
securities other than U.S. Govt.
U.S. Government securities, by maturity
Period
All
Within
1
maturi
ties
year
1-5
years
5-10
years
Over
10
years
U.S.
Govt.
agency
securi
ties
Commercial banks
Period
All
sources
Corpora
tions 1
All
other
Nevr
York
City
Else
where
4,837
3,817
2,449
1,637
2,477
1,710
4,138
4,709
4,621
5,626
6,904
1,545
1,196
600
26
241
6
988
1,312
1,194
1,466
2,061
1,501
952
728
486
884
596
1,248
1,247
1,003
1,245
1,619
533
485
287
213
268
216
548
480
571
561
691
1,257
1,185
833
913
1,083
892
1,354
1,671
1,853
2,355
2,534
6,185
6,295
1,455
1,672
1,277
1 ,077
864
714
2,590
2,832
1974— Feb................. 4,081
Mar................ 2,587
Apr................. 1,536
495
594
June...............
July................
263
Aug............... 2,487
Sept................ 3,060
Oct................. 2,870
Nov................ 4,513
Dec................. 4,831
2,707
2,149
1,577
421
447
219
1,819
2,317
2,149
2,999
3,100
537
50
-121
-3 3
52
-5 0
228
334
430
728
975
647
287
62
66
78
90
356
340
260
618
559
190
102
17
41
16
4
84
69
31
169
197
1,435
1,045
719
791
1,226
935
1,073
1,216
1,445
1,531
1,803
1974—Feb.............
1975—Jan................. 4,656
Feb................. 5,586
2,689
3,656
1,254
1,180
600
536
113
213
1,578
1,469
1975—Jan.............
Feb............
1......... 4,741
8
5,341
15......... 5,440
22
3,666
29......... 4,125
2,258
2.501
3,485
2,105
2,673
1,776
2,051
1,243
849
907
535
641
616
603
480
171
149
95
109
65
2,056
1,831
1,550
1,426
1,504
1975—Jan.
1. ..
8. ..
15 ...
2 2 ...
2 9 ...
6,436
6,649
7,271
5,625
5,360
1,424
1,495
1,801
1,394
1,197
1,344
1,476
1,802
961
963
565
720
1,139
792
849
3,103
2,958
2,529
2,478
2,351
5.........
12.........
19 ,
26
3,106
3,902
3,958
3,619
1,044
922
775
1,775
673
539
553
501
281
227
195
167
1,497
1,411
1,574
1,617
Feb.
5 ...
1 2 ...
1 9 ...
2 6 ...
6,784
7,097
7,148
6,506
1,826
1,968
2,018
1,689
1,147
1,741
1,885
1,499
709
954
828
786
3,102
2,433
2,417
2,532
Week ending—
1975—Jan.
Feb.
Week ending—
5,104
5,590
5,482
6,061
N o t e .—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.
May...........
June...........
July............
1 All business corporations, except commercial banks and insurance
companies.
N o t e . —Averages of daily figures based on the number of calendar days
in the period. Both bank and nonbank dealers are included. See also
N o t e to the table on the left.
A
APRIL 1975 □ FEDERALLY SPONSORED CREDIT AGENC
IG ISSUES OF FEDERALLY SPONSORED CREDIT AGENCIES, FEBRUARY ;
Cou Amount
pon
(millions
rate of dollars)
7.15
8.05
6.80
7.95
7.88
7.15
6.50
7.05
9.10
8.70
7.38
8.75
9.20
7.20
7.45
7.80
9.55
8.60
9.55
7.20
8.05
8.70
6.95
7.15
8.80
6.75
7.45
9.15
9.38
7.60
9.10
8.65
9.45
8.65
8.75
9.50
8.15
7.50
7.75
7.05
7.80
6.60
8.65
7.30
7.38
8.75
7.38
700
265
300
300
500
400
350
600
700
400
300
300
600
600
300
500
700
600
500
500
500
500
200
300
600
300
300
700
400
500
500
600
600
500
400
500
500
500
350
300
200
200
400
183
400
300
400
7.05
6.15
8.60
7.75
7.15
400
350
140
150
150
8.20
300
3,033
8.00
4.38
7.40
200
248
250
8.38
3.58
5.48
5.85
5.92
5.50
5.49
5.74
8.63
250
53
5
71
35
10
21
81
200
Agency, and date of issue
and maturity
Federal National Mortgage
Association— Cont.
Debentures:
11/10/70 - 3/10/75.........
10/12/71 - 3/10/75.........
4/1/70 - 4/1/75 .................
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...........
3/1 1/71 - 3/10/76.............
6/12/73 - 3/10/76.............
6/10/71 - 6/10/76.............
2/10/72 - 6/10/76.............
9/10/74 - 6/10/76.............
11/10/71 - 9/10/76...........
6/12/72 -9 /1 0 /7 6 .............
12/10/74 - 9/10/76..........
7/12/71 - 12/10/76...........
12/11/72 - 12/10/76.........
6 /1 0 /7 4 - 12/10/76...........
2/13/62 - 2/10/77...........
9/11/72 - 3/10/77.............
3/11/74 - 3 / 1 0 / 7 7 . .. .. ..
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 /1 2 /7 7 .............
7/10/73 - 12/12/77...........
10/1/73 - 12/12/77...........
6 /1 0 /7 4 -3 /1 0 /7 8 .............
6/12/73 - 6/12/78.............
3/11/74 - 9/11/78.............
10/12/71 - 12/11/78___
7 /1 0 /7 4 - 12/11/78..........
12/10/73 - 3/12/79...........
9/10/73 - 6/11/79.............
9/10/74 - 6/11/79.............
6/12/72 -9 /1 0 /7 9 .............
12/10/74 -9 /1 0 /7 9 ...........
12/10/71 - 12/10/79___
2/10/72 - 3/10/80.............
6/1 0 /7 4 -6 /1 0 /8 0 .............
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 - 12/10/80.........
6/29/72 - 1/29/81.............
3/12/73 - 3/10/81.............
4/18/73 -4 /1 0 /8 1 .............
3/21/73 - 5/1/81...............
3/21/73 - 5/1/81...............
1/21/71 - 6/10/81...........
9/10/71 -9 /1 0 /8 1 .............
9 /1 0 /7 4 -9 /1 0 /8 1 .............
3/11/74 - 12/10/81...........
7/10/74 - 3/10/82.............
6/28/72 -5 /1 /8 2 ...............
2/10/71 - 6/10/82.............
9/11/72 - 9/10/82.............
12/10/73 - 12/10/82.........
3/11/71 -6 /1 0 /8 3 .............
6/12/73 -6 /1 0 /8 3 .............
11/10/71 - 9/12/83...........
4/12/71 -6 /1 1 /8 4 .............
12/10/74 -9 /1 0 /8 4 ...........
12/10/71 - 12/10/84___
3/10/72 - 3/10/92...........
6 /1 2 /7 2 -6 /1 0 /9 2 .............
12/11/72 - 12/10/97-82. .
Cou Amount
pon
(millions
rate of dollars)
7.55
6.35
8.00
5.25
7.50
6.80
5.70
8.25
5.65
7.13
6.70
5.85
10.00
6.13
5.85
7.50
7.45
6.25
8.45
4.50
6.30
7.05
6.38
6.50
7.20
6.88
7.85
7.25
7.55
8.45
7.15
7.15
6.75
8.95
7.25
7.85
9.80
6.40
7.80
6.55
6.88
8.50
5.19
3.18
7.50
4.46
6.60
6.15
7.05
6.59
4.50
5.77
7.25
7.25
9.70
7.30
8.88
5.84
6.65
6.80
7.35
6.75
7.30
6.75
6.25
7.95
6.90
7.00
7.05
7.10
300
600
200
500
350
650
500
300
500
400
250
450
700
300
500
200
300
500
600
198
500
400
250
150
500
300
400
500
500
650
600
550
300
450
500
300
600
300
700
350
250
600
1
9
400
5
300
156
350
26
18
2
250
250
300
250
300
58
250
200
300
200
300
250
200
300
250
200
200
200
nour
illior
Agency, and date of issue
and maturity
iollai
Banks for cooperatives
Bonds:
9/3/74 - 3/3/75...............
10/1/74 -4 /1 /7 5 ..............
11/4/74 - 5/1/75..............
12/2/74 -6/2/75 ..............
1/2/75 - 7/1/75 ................
2/3/75 - 8/4/75 ................
10/1/73 -4 /4 /7 7 ..............
12/2/74 - 10/1/79............
576
463
683
529
467
474
200
201
Federal intermediate
credit banks
Bonds:
6/3/74 - 3/3/75................
7/1/74-4/1/75................
8/1/74- 5/1/75................
9/3/74 - 6/2/75................
10/1/74-7/1/75..............
1/3/72 - 7/1/75................
11/4/74-8/4/75..............
12/2/74 - 9/2/75..............
1/2/75 - 10/1/75 ..............
2/3/75 - 11/3/75..............
3/1/73 - 1/5/76................
7/2/73 - 1/3/77...............
7/1/74 -4 /4 /7 7 ................
1/2/74 - 1/3/78................
1/2/75 - 1/2/79................
796
811
766
714
769
302
713
768
458
754
261
236
321
406
410
Federal land banks
Bonds:
4/20/65 - 4/21/75..........
7/20/73 -4/21/75............
2/15/72 - 7/21/75............
4/22/74 - 7/21/75............
7/20/71 - 10/20/75..........
10/23/73 - 10/20/75........
4/20/72 - 1/20/76............
7/22/74 - 1/20/76............
2/21/66 - 2/24/76..........
1/22/73 -4/20/76............
4/22/74-4/20/76............
7/20/66 - 7/20/76..........
1/21/74 - 7/20/76............
4/23/73 - 10/20/76..........
4/22/74-4/20/77............
7/20/73 - 7/20/77............
10/20/71 - 10/20/77........
10/21/74- 1/23/78..........
2/20/63 - 2/20/73-78....
5/2/66 - 4/20/78............
1/20/75 - 4/20/78............
7/20/72 - 7/20/78..........
7/22/74 - 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............
10/21/74- 10/20/80........
2/23/71 -4/20/81............
7/22/74 - 7/20/81............
1/20/75 - 1/20/82............
4/20/72-4/20/82............
4/23/73 - 10/20/82 .......
10/23/73 - 10/20/83........
guaranteed by the U.S. G ovt.; see also note to table at top of p. A-38.
7.65
5.70
8.30
7.20
7.40
6%
9.20
5.00
6%
8%
5^
7.05
7.15
8K
7Vi
6.35
8.70
41/g
5H
7.60
6.40
9.15
7.35
5.00
7.10
6.85
7.15
6.80
6.70
71/z
8.70
6.70
9.10
7.80
6.90
7.30
7.30
200
300
425
300
300
362
300
650
123
373
400
150
360
450
565
550
300
546
148
150
713
269
350
550
285
300
235
389
400
300
250
400
224
265
400
200
239
300
A 38
FEDERALLY SPONSORED CREDIT AGENCIES □ APRIL 1975
MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES
(In millions of dollars)
Federal home loan banks
End of
period
Assets
Liabilities and capital
Cash
and
de
posits
Ad
vances
to
mem
bers
Invest
ments
1970.............
1971.............
1972.............
1973.............
10,614
7,936
7,979
15,147
3,864
2,520
2,225
3,537
105
142
129
157
10,183
7,139
6,971
15,362
2,332
1,789
1,548
1,745
1974—Mar...
Apr...
M ay..
June..
Ju ly ..
Aug...
Sept...
O ct...
N o v ..
D ec...
14,995
16,020
17,103
17,642
18,582
19,653
20,772
21,409
21,502
21,804
2,779
1,615
1,956
2,564
2,578
2,052
2,681
3,224
2,568
3,094
124
82
96
115
150
80
135
105
106
144
13,906
13,902
14,893
16,393
17,390
18,759
20,647
22,058
21,474
21,878
1975 —Jan.. . 20,728
4,467
4,838
113
99
21,778
20,822
Feb...
19,460
Federal National
Mortgage Assn.
(secondary market
operations)
Bonds
and
notes
Mem
ber
de
posits
Banks
for
cooperatives
Deben Loans
to
tures
and
cooper
notes
atives
(A)
(L)
Bonds
2,122
15,502
17,791
19,791
24,175
15,206
17,701
19,238
23,001
2,027
2,067
2,215
2,158
1,954
1,935
2,160
2,129
2,182
2,484
2,306
2,337
2,376
2,413
2,450
2,495
2,543
2,580
2,603
2,624
24,888
25,264
25,917
26,559
27,304
28,022
28,641
29,139
29,407
29,709
2,612
2,819
2,699
2,698
29,797
29,846
Capital
stock
Mort
gage
loans
(A)
1,607
1,618
1,756
N o t e .—Data from Federal Home Loan Bank Board, Federal National
Mortgage Assn., and Farm Credit Admin. Among omitted balance
sheet items are capital accounts of all agencies, except for stock of FHLB’s.
Bonds, debentures, and notes are valued at par. They include only publicly
Federal
intermediate
credit banks
Federal
land
banks
Bonds
(L)
Loans
and
dis
counts
(A)
(L)
Mort
gage
loans
(A)
2,030
2,076
2,298
2,577
1,755
1,801
1,944
2,670
4,974
5,669
6,094
7,198
4,799
5,503
5,804
6,861
7,186
7,917
9,107
11,071
9,838
23,515
23,668
25,089
25,232
25,878
26,639
27,312
27,543
28,024
28,201
3,143
2,891
2,694
2,733
3,008
3,026
3,092
3,598
3,573
3,575
2,878
2,810
2,674
2,449
2,477
2,622
2,835
2,855
3,295
3,561
7,545
7,850
8,195
8,479
8,706
8,548
8,931
8,838
8,700
8,848
7,162
7,403
7,585
7,860
8,212
8,381
8,502
8,482
8,441
8,400
11,467
11,878
12,142
12,400
12,684
12,941
13,185
13,418
13,643
13,643
10,282
10,843
10,843
10,843
11,782
11,782
11,782
12,427
12,427
12,427
28,030
27,730
3,910
3,821
3,653
3,592
8,888
8,419
8,484
14,086
14,326
13,020
13,021
Bonds
(L)
6,395
7,063
8,012
offered securities (excluding, for FHLB’s, bonds held within the FHLB
System) and are not guaranteed by the U.S. Govt.; for a listing of these
securities, see table on preceding page. Loans are gross of valuation reserves
and represent cost for FNMA and unpaid principal for other agencies.
NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES
(In millions of dollars)
All issues (new capital and refunding)
Gener
al
obli
gations
197
197
197
197
Type of issuer
Type of issue
Period
Reve
nue
1
2
3
4
24,962
23,652
23,970
23,705
1974— Feb..
Mar.
Apr..
May.
June.
July.
Aug.
Sept.
Oct..
Nov.
Dec..
2,007
2,029
2,406
2,313
2,171
1,466
1,109
1,705
2,865
2,487
1,500
1,209
1,181
1,708
1,101
1,075
859
576
869
1,707
1,110
761
794
617
689
1,203
856
600
529
832
1,153
1,374
717
1975—Jan .r
Feb..
2,179
2,195
1,325
1,681
848
509
15,220 8,681
13,305 9,332
12,257 10,632
13,204 9,961
HAAl
1,000
959
1,022
461
234
Issues for new capital
U.S.
Govt.
loans
State
62
57
58
79
5,999
4,991
4,212
4,659
4
4
9
9
6
7
4
4
5
3
22
473
344
360
451
580
540
141
448
328
689
222
6
5
372
877
Special
district
and
Other 2
stat.
auth.
Use of proceeds
Total
Edu Roads
and
cation bridges
Util
ities4
Other
Hous Veter
ans* pur
ings
aid poses
8,714 10,246
9,496 9,165
9,507 10,249
8,499 10,470
24,495
22,073
22,408
5,278
4,981
4,311
4,709
2,642
1,689
1,458
767
5,214
4,638
5,654
5,513
2,068
1,910
2,639
1,045
9,293
6,741
8,335
8,176
564
793
862
1,097
721
158
400
641
974
1,005
558
967
887
1,177
756
864
761
565
611
1,558
789
700
1,939
1,906
2,361
2,237
2,079
1,456
1,067
1,669
2,738
2,403
1,475
460
366
516
442
53
258
9
18
62
58
85
39
241
178
624
560
1,184
754
2,158
2,164
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
20,210
314
228
251
343
698
297
11
110
612
363
595
711
664
154
257
380
236
4
64
424
9
53
775
678
1,063
1,058
799
930
482
1,006
1,939
826
637
688
49
204
567
381
141
103
713
1,062
220
414
866
8
334
1*5
21
110
4 Water, sewer, and other utilities.
5 Includes urban redevelopment loans.
N o t e .— 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.
APRIL 1975 □ SECURITY ISSUES
A 39
TOTAL NEW ISSUES
(In m illions o f dollars)
Gross proceeds, all issues1
Noncorporate
Corporate
Period
Total
Stock
Bonds
U.S.
Govt.2
U.S.
Govt.
agency3
State
and local
(U.S.)4
Others
1971.....................
1972.....................
1973.....................
1974.....................
105,233
96,522
100,417
17,325
17,080
19,057
16,283
12,825
23,883
24,370
23,070
22,700
2,165
1,589
1,385
1973—Dec..........
6,635
148
1,032
1,966
251
Total
45,090
41,957
33,391
37,785
1974 Jan 6r
Feb.r. ..
M a r.r . .
A pr.r.......
May r. ..
June r.......
July r ........
Aug.r . . ..
Sept.r . . . .
Oct.r........
Nov..........
Dec..........
Total
Publicly
offered
Privately
placed
Preferred
Common
32,123
28,896
22,268
31,458
24,775
19,434
13,649
25,337
7,354
9,462
8,620
6,121
3,670
3,367
3,372
2,248
9,291
9,694
7,750
4,079
3,238
2,469
1,552
917
196
573
3,328
2,687
3,217
3,066
3,164
2,981
3,260
2,668
1,629
4,642
3,734
3,409
2,898
2,101
2,457
2,265
2,957
2,455
2,706
2,341
1,215
3,789
3,319
2,955
2,115
1,683
2,020
1,594
2,350
1,939
2,086
2,042
897
3,423
3,016
2,172
783
418
437
671
607
516
620
299
318
366
303
783
152
268
398
355
65
113
228
107
216
196
88
152
278
318
362
446
142
413
327
218
289
657
327
302
Gross proceeds., major groups of corporate issuers
Period
Manufacturing
Commercial and
miscellaneous
Transportation
Public utility
Communication
Real estate
and financial
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
Bonds
Stocks
1971..............................................
1972..............................................
1973..............................................
1974..............................................
9,426
4,821
4,329
9,832
2,152
1,809
643
546
2,272
2,645
1,283
1,863
2,390
2,882
1,559
968
1,998
2,862
1,881
983
420
185
43
22
7,605
6,392
5,585
8,854
4,195
4,965
4,661
3,964
4,227
3,692
3,535
3,707
1,592
1,125
1,369
217
6,601
8,485
5,661
6,228
2,212
2,095
2,860
617
1973—Dec....................................
485
18
145
285
226
6
569
319
350
27
693
115
1974__Jan. 6.................................
Feb.....................................
Mar....................................
Apr....................................
May...................................
June...................................
July....................................
Aug....................................
Sept....................................
Oct.r ..................................
Nov.r.................................
Dec....................................
867
354
479
1,193
847
r434
1,051
601
186
739
1,682
1,399
29
36
161
9
15
44
43
4
2
3
2
198
136
55
52
238
332
311
257
38
'46
102
124
172
124
143
71
56
71
139
93
62
47
29
110
23
*•78
r2
76
6
44
5
62
14
50
306
336
4
1,192
536
850
446
837
859
318
862
384
1,414
739
417
249
293
449
685
75
288
300
r216
296
695
224
194
142
372
310
289
660
355
242
364
331
435
62
145
4
25
21
5
3
1
53
485
783
691
95
239
491
27
87
58
47
44
39
65
44
48
90
54
14
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 n o t e to table at bottom of opposite page.
5 Foreign governments and their instrumentalities, International Bank
for Reconstruction and Development, and domestic nonprofit organ
izations.
1
15
1
5
18
36
26
25
m i
462
218
791
379
817
6 Beginning Jan. 1974 noncorporate figures are no longer published by
the SEC.
N o t e .— Securities and Exchange Commission estimates of new issues
maturing in more than 1 year sold for cash in the United States.
A 40
SECURITY ISSUES □ APRIL 1975
NET CHANGE IN OUTSTANDING CORPORATE SECURITIES
(In m illions 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
1971.......................
1972.......................
1973.......................
1974.......................
46,687
42,306
33,559
39,334
9,507
10,224
11,804
9,935
37,180
32,082
21,754
29,399
31,917
27,065
21,501
31,554
8,190
8,003
8,810
6,255
23,728
19,062
12,691
25,098
14,769
15,242
12,057
7,980
1,318
2,222
2,993
3,678
13,452
13,018
9,064
4,302
1973—IV...............
10,711
4,378
6,334
7,013
3,786
3,227
3,698
591
3,107
1974—1.................
11................
I l l ...............
IV...............
8,973
9,637
8,452
12,272
2,031
2,048
2,985
2,871
6,942
7,589
5,467
9,401
6,810
7,847
6,611
10,086
1,442
1,584
1,225
2,004
5,367
6,263
5,386
8,082
2,163
1,790
1,841
2,186
588
465
1,759
866
1,575
1,326
82
1,319
Type of issues
Commercial
and other 2
Manu
facturing
Period
Transpor
tation 3
Public
utility
Communi
cation
Real estate
and financial 1
Bonds
and
notes
Stocks
Bonds
and
notes
Stocks
Bonds
and
notes
Stocks
Bonds
and
notes
1
2
3
4
6,585
1,995
801
7,404
2,534
2,094
658
17
827
1,409
-109
1,116
2,290
2,471
1,411
-135
900
711
1,044
341
800
254
-9 3
-2 0
6,486
5,137
4,265
7,308
4,206
4,844
4,509
3,834
3,925
3,343
3,165
3,499
1,600
1,260
1,399
398
1973—IV,
-131
147
-1 6 2
460
176
-1 3
1,068
1,506
1,051
1974—1. .
II.
Ill
IV.
906
1,921
1,479
3,098
324
-1 2
-421
126
-1 1
698
189
240
363
213
-6 6 4
-4 7
-3 7
-1 3
49
342
-3 5
12
—6
9
2,172
1,699
1,358
2,079
827
1,038
862
1,107
675
1,080
1,116
628
197
197
197
197
1 Excludes investment companies.
2 Extractive and commercial and miscellaneous companies.
3 Railroad and other transportation companies.
N o t e . —Securities and Exchange Commission estimates of cash trans
actions only. As contrasted with data shown on preceding page, new issues
Bonds
and
notes
Bonds
and
notes
Stocks
5,005
7,045
3,523
5,428
2,017
2,096
1,181
207
575
1,225
431
76
-7
222
107
1,662
877
1,194
1,695
20
82
88
17
exclude foreign sales and include sales of securities held by affiliated com
panies, 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 in
ternal 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
Net
sales
Assets (market value
at end of period)
Total 2
1963..............
1964..............
1965..............
2,460
3,404
4,359
1,504
1,875
1,962
952 25,214
1,528 29,116
2,395 35,220
1966..............
1967..............
1968..............
4,671
4,670
6,820
2,005
2,745
3,841
2,665 34,829
1,927 44,701
2,979 52,677
1969..............
1970..............
1971..............
6,717
4,624
5,145
3,661
2,987
4,751
3,056 48,291
1,637 47,618
r394 *■55,045
1972..............
1973..............
1974..............
4,892
4,358
5,346
6,563
5,651
3,937
-1,671 59,831
-1,261 46,518
1,409 35,777
Cash
Other
position 3
Sales 1 Redemp
tions
Net
sales
Assets (market value
at end of period)
Total 2
Cash
position 3
Other
23,873 1974—F eb...
27,787
M ar..,
A pr...
33,417
M ay..
June..
2,971 31,858
July. .
2,566 42,135
A ug..,
3,187 49,490
Sept...
O ct.. .
3,846 44,445
N ov...
3,649 43,969
Dec...
r52,007
r3,038
215
297
262
323
337
442
446
499
816
619
736
303
346
327
320
276
352
339
292
311
335
411
-8 8
-4 9
-6 5
3
61
90
127
207
505
284
325
45,958
44,423
42,679
41,015
40,040
37,669
35,106
31,985
37,115
36,366
35,777
4,447
4,406
4,426
4,389
4,461
4,609
4,953
5,078
5,652
5,804
5,637
41,511
40,017
38,253
36,626
35,579
33,060
30,153
26,907
31,463
30,562
30,140
56,796 1975—J a n ...
42,516
F eb...
30,140
1,067
889
428
470
639 r3,7407
419 39,330
r3,889
4,006
r33,518
35,324
1,341
1,329
1,803
3,035
4,002
5,637
1 Includes contractual and regular single-purchase sales, voluntary and
contractual accumulation plan sales, and reinvestment of investment in
come dividends; excludes reinvestment of realized capital gains dividends.
2 Market value at end of period less current liabilities.
3 Cash and deposits, receivables, all U.S. Govt, securities, and other
short-term debt securities, less current liabilities.
Sales and redemption
of own shares
N o t e .— 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.
APRIL 1975 □ B U SIN E S S FINANCE
A 41
CORPORATE PROFITS, TAXES, AND DIVIDENDS
(In billions of dollars)
Year
Profits
before
taxes
In
come
taxes
Profits
after
taxes
Cash
divi
dends
Undis
tributed
profits
Corporate
capital
consump
tion
allow
ances 1
1968..............
1969..............
1970..............
1971..............
1972..............
1973..............
1974r.............
87.6
84.9
74.0
83.6
99.2
122.7
141 .4
39.9
40.1
34.8
37.5
41.5
49.8
56.0
47.8
44.8
39.3
46.1
57.7
72.9
85.4
23.6
24.3
24.7
25.0
27.3
29.6
32.7
24.2
20.5
14.6
21.1
30.3
43.3
52.8
46.8
51.9
56.0
60.4
66.3
71.2
76.7
1 Includes depreciation, capital outlays charged to current accounts, and
accidental damages.
Corporate
capital
Undis consump
tributed
tion
profits
allow
ances 1
Quarter
Profits
before
taxes
In
come
taxes
Profits
after
taxes
Cash
divi
dends
1973—1___
I I ....
I II...
IV ...
120.4
124.9
122.7
122.7
48.9
50.9
49.9
49.5
71.5
74.0
72.9
73.2
28.7
29.1
29.8
30.7
42.8
44.9
43.1
42.5
69.2
70.8
71.6
73.1
1974—1___
II. . .
I II...
IV*..
135.4
139.0
157.0
134.1
52.2
55.9
62.7
53.0
83.2
83.1
94.3
81 .1
31.6
32.5
33.2
33.3
51.6
50.5
61.1
47.8
74.1
75.7
77.6
79.3
N o t e .—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
Total
Cash
U.S.
Govt.
securi
ties
Current liabilities
Notes and accts.
receivable
U.S.
Govt.1
Other
Inven
tories
Other
Total
Notes and accts.
Accrued
payable
Federal
income
U.S.
taxes
Govt.1 Other
Other
1970..............................
1971..............................
187.4
204.9
492.3
518.8
50.2
55.7
7.7
10.7
4.2
3.5
201.9
208.8
193.3
200.3
35.0
39.7
304.9
313.9
6.6
4.9
204.7
207.3
10.0
12.2
83.6
89.5
1972—111.....................
IV .....................
219.2
224.3
547.5
563.1
57.7
60.5
7.8
9.9
2.9
3.4
224.1
230.5
212.2
215.1
42.8
43.6
328.3
338.8
4.7
4.0
212.1
221.6
12.7
14.1
98.8
99.1
1973—1.........................
II.......................
I l l .....................
IV ......................
231,8
237.7
241.9
245.3
579.2
596.8
613.6
631.4
61.2
62.3
62.2
65.2
10.8
9.6
9.5
10.7
3.2
2.9
3.0
3.5
235.7
245.6
254.2
255.8
222.8
230.3
238.2
247.0
45.5
46.0
46.6
49.3
347.4
359.1
371.7
386.1
4.1
4.5
4.4
4.3
222.8
232.5
240.8
252.0
15.7
13.9
15.3
16.6
104.7
108.1
111.2
113.3
1974—1......................... 253.2
I I ....................... 257.4
I l l ..................... 263.6
653.9
673.3
696.0
62.8
62.2
63.9
11.7
10.4
10.7
3.2
3.4
3.5
265.6
278.7
284.1
258.9
269.7
282.7
51.6
48.8
51.1
400.7
415.8
432.4
4.5
4.7
5.1
256.7
268.4
276.6
18.7
17.4
20.5
120.7
125.3
130.2
1 Receivables from, and payables to, the U.S. Govt, exclude amounts
offset against each other on corporations’ books.
N o t e .—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
Commu
nications
Electric andGas
other
Other i
Total
(S.A.
A.R.)
1971.......................
1972.......................
1973.......................
1974r .....................
81.21
88.44
99.74
112.40
14.15
15.64
19.25
22.62
15.84
15.72
18.76
23.39
2.16
2.45
2.74
3.18
1.67
1.80
1.96
2.54
1.88
2.46
2.41
2.00
1.38
1.46
1.66
2.12
12.86
14.48
15.94
17.63
2.44
2.52
2.76
2.92
10.77
11.89
12.85
13.96
18.05
20.07
21.40
22.05
1972—IV...............
25.20
4.77
4.61
.63
.47
.63
.40
4.01
.73
3.39
5.57
91.94
1973—1..................
II.................
I ll...............
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
.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
1974—1..................
I I ...............
I l l ...............
IV...............
24.10
28.16
28.23
31.92
4.74
5.59
5.65
6.64
4.75
5.69
5.96
6.99
.68
.78
.80
.91
.50
.64
.64
.78
.47
.61
.43
.48
.34
.49
.58
.71
3.85
4.56
4.42
4.80
.52
.75
.78
.87
3.19
3.60
3.39
3.78
5.05
5.46
5.57
5.97
107.27
111.40
113.99
116.22
1975—12................
25.33
4.87
5.60
.87
.66
.46
.53
3.81
.56
1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
7.!98
113.22
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.
A 42
REAL ESTATE CREDIT □ APRIL 1975
MORTGAGE DEBT OUTSTANDING BY TYPE OF HOLDER
(In millions o f dollars)
End o f year
End o f quarter
Type of holder, and type of property
1974
1970
1971
1972
nr
IV
IV r
ALL HOLDERS.
1- to 4-family...
Multifamily1. . .
Commercial.. . .
Farm .................
451,726
280,175
58,023
82,292
31,236
499,758
307,200
67,367
92,333
32,858
564,825
345,384
76,496
107,508
35,437
634,955
386,241
85,401
123,965
39,348
645,948
391,770
86,591
127,384
40,203
664,337
402,165
88,269
132,122
41 ,781
678,037
409,725
90,183
134,967
43,162
687,484
414,344
91,893
136,977
44,270
PRIVATE FINANCIAL INSTITUTIONS..
1- to 4-family................................................
Multifamily1................................................
Commercial..................................................
Farm.............................................................
355,929
231,317
45,796
68,697
10,119
394,239
253,540
52,498
78,345
9,856
450,000
288,053
59,204
92,222
10,521
505,401
322,048
64,730
107,128
11,495
513,946
326,863
65,386
110,047
11,650
528,212
335,442
66,594
114,185
11,991
536,868
340,398
67,757
116,430
12,283
541,497
342,757
68,371
117,960
12,409
82,515
99,314
119,068
121,882
127,320
129,943
131,043
Commercial banks2.
73,275
1- to 4-family___
Multifamily1.
Commercial........
Farm ...................
42,329
3,311
23,284
4,351
48,020
3,984
26,306
4,205
Mutual savings banks.
57,948
61,978
1- to 4-family.........
Multifamily1..........
Commercial............
Farm .......................
Savings and loan associations.
1- to 4-family.......................
Multifamily1.......................
Commercial.........................
Life insurance companies.
37,342
12,594
7,893
119
150,331
124,970
13,830
11,531
74,375
57,004
5,778
31,751
4,781
67,556
67,998
6,932
38,696
5,442
73,231
69,374
7,046
39,855
5,607
73,957
72,253
7,313
41,926
5,828
74,264
73,539
7,415
43,011
5,978
74,792
38,641
14,386
8,901
50
41,650
15,490
10,354
62
44,247
16,843
12,084
57
44,462
17,011
12,425
59
44,426
17,081
12,698
59
44,593
17,202
12,938
59
174,250
206,182
231,733
236,136
243,400
247,624
142,275
17,355
14,620
75,496
167,049
20,783
18.350
187,750
22,524
21,459
76,948
81,369
191,223
22,763
22,150
81,971
197,008
23,342
23,050
83,228
21,755
200,352
23,574
23,698
84,509
74,162
7,478
43,375
6,028
74,890
44,649
17,225
12,956
60
249,306
201,564
23,684
24,058
86,258
26,676
16,061
25,989
5,649
24,604
16,773
28,518
5,601
22.350
17,153
31,767
5,678
22,053
18,431
34,889
5,996
21,804
18,566
35,617
5,984
FEDERAL AND RELATED AGENCIES..
1- to 4-family................................................
Multifamily1................................................
Commercial..................................................
Farm.............................................................
32.992
21.993
3,359
16
7,624
39,357
26,453
4,555
11
8,338
45,790
30,147
6,086
55,664
35,454
8,489
58,262
37,168
8,923
9,557
11,721
Government National Mortgage Association
5,222
5,323
5,113
4,029
2,490
2,623
1 ,330
2,699
3,604
1,189
2,415
1 ,194
2,424
1,337
2,715
1,600
3,248
1,300
1,400
1,500
1,600
3,619
3,765
3,900
26,559
28,641
29,578
11,467
12,400
13,185
13,863
2,627
2,472
3,191
165
2,951
240
3,713
3,414
299
4,217
369
11,798
12 , 9^3
13,892
73,540
26,939
12,032
17,937
16,632
73,340
26,139
11,782
18,537
16,882
73,720
25,839
11,732
19,017
17,132
1- to 4-family...............
Multifamily1................
Commercial.................
Farm ............................
1- to 4-family........................................
Multifamily1........................................
Commercial..........................................
2,902
2,304
16
2,770
2,542
11
398
421
837
1,200
330
437
387
450
550
650
Federal Housing and Veterans Administra
tions .....................................................
3,505
3,389
3,338
3,476
2,199
1,139
2,013
1 ,463
Federal National Mortgage Association . ..,
15,502
17,791
19,791
24,175
Federal land banks (farm only).................
7,187
7,917
9,107
Federal Home Loan Mortgage Corporation.
357
964
1,789
Farmers Home Administration.
1- to 4-family........................
Farm ......................................
1- to 4-family..........................................
Multifamily1...........................................
1- to 4-family...........................................
Multifamily1............................................
1- to 4-family............................................
Multifamily1............................................
GNMA Pools . ...
1- to 4-family.
Multifamily1..
INDIVIDUALS AND OTHERS3.
1- to 4-family................................
Multifamily1.................................
Commercial...................................
Farm..............................................
767
2,771
734
15,181
321
357
819
2,517
872
16,681
1,110
934
30
20,370
3,805
2,604
1,754
35
2,446
158
3,514
1,964
1 ,500
24,875
20,516
4,359
452
3,154
5,815
9,109
10,865
5,620
195
8,745
364
10,431
434
62,805
26,865
8,868
13,579
13,493
66,162
27,207
10,314
13,977
14,664
69,035
27,184
11,206
15,286
15,359
73,890
28,739
12,182
16,837
16,132
73,740
27,739
12,282
17,337
16,382
452
3,153
1
1 Structure of 5 or more units.
2 Includes loans held by nondeposit trust companies but not bank trust
departments.
3 Includes some U.S. agencies for which amounts are small or separate
data are not readily available.
17,697
2,094
596
704
18,858
36,511
6,104
21,914
19,566
36,783
6,246
22,382
19,984
37,571
6,321
62,585
39,784
9,643
67,829
43,1
10,644
72,267
45,748
11,790
13,158
13,997
14,729
3,618
4,052
642
758
1 ,980
1,639
21,691
4,868
11,326
472
688
812
2,037
1,728
23,258
5,383
12,454
519
734
866
2,083
1 ,817
23,778
5,800
4,586
13,336
556
N o t e .— Based on data from various institutional and Govt, sources,
with some quarters estimated in part by Federal Reserve in conjunction
with the Federal Home Loan Bank Board and the Dept, of Commerce.
Separation of nonfarm mortgage debt by type of property, where not
reported directly, and interpolations and extrapolations where required,
estimated mainly by Federal Reserve.
APRIL 1975 □ REAL ESTATE CREDIT
A 43
FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORPORATIONSECONDARY MORTGAGE MARKET ACTIVITY
(In millions o f dollars)
FNMA
Mortgage
holdings
End of
period
FHLMC
Mortgage
transactions
(during period)
Total 1
FHAmsured
VAguaranteed
Pur
chases
1971
1972
1973
1974
17,791
19,791
24,175
29,578
12,681
14,624
16,852
19,189
5,110
5,112
6,352
8,310
3,574
3,699
6,127
6,953
1974--F e b ...
Mar...
A p r...
M ay..
Ju n e..
July. .
Aug...
Sept..
O ct...
Nov...
Dec...
24,529
24,875
25,263
25,917
26,559
27,304
28,022
28,641
29,139
29,407
29,578
17,050
17,315
17,450
17,725
17,966
18.250
18,526
18,758
18,966
19,083
19,189
6,336
6,340
6,503
6,794
7,079
7,384
7,704
7,994
8,206
8,291
8,310
242
462
526
821
770
886
868
760
612
379
278
1975--J a n ...
Feb...
29,670
29,718
19,231
19.256
8,318
8,313
208
169
Mortgage
commitments
Sales
336
211
71
5
1
1
2
Mortgage
transactions
(during period)
Mortgage
holdings
Made
during
period
Out
stand
ing
Total
FHAVA
Con
ven
tional
Pur
chases
9,828
8,797
8,914
10,765
6,497
8,124
7,889
7,960
968
1,789
2,604
4.586
821
1,503
1,743
1,904
147
286
861
2,682
778
1,298
1,334
2,191
64
408
409
52
489
1,646
2,154
1,145
537
1,175
1,202
997
878
201
231
6,768
7,913
9,292
9,475
9,019
9,044
9,115
9,043
8,987
8,532
7,960
2,625
2,638
2,722
2,986
3,191
3,309
3,451
3,713
4,107
4,352
4.586
1,730
1,724
1,756
1,827
1,877
1,883
1,886
1,896
1 ,910
1,908
1,904
895
914
967
1,159
1,314
1,426
1,565
1,817
2,197
2,445
2,682
21
29
101
281
222
129
155
273
410
270
266
6
2
146
137
7,285
6,672
4,744
1,900
2,845
199
1 Includes conventional loans not shown separately.
from FNMA and FHLMC, respectively.
N o t e . —Data
For F N M A : Holdings include loans used to back bond issues guaranteed
by GNMA. Commitments 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 FNM AGNMA Tandem Plan (Program 18).
Mortgage
commitments
Made
during
period
Out
stand
ing
1,606
1,629
4,553
182
198
186
2.390
7
12
16
49
595
400
1,486
628
1,127
81
69
30
28
34
185
748
1,037
2,221
2,598
3,583
3,500
3,278
2,871
2,621
2.390
26
26
2,190
Sales
For FHLMC: Data for 1970 begin with Nov. 26, when the FHLMC
became operational. Holdings and transactions cover participations as
well as whole loans. Holdings include loans used to back bond issues
guaranteed by GNMA. Commitments cover the conventional and Govt.underwritten loan programs.
TERMS AND YIELDS ON NEW HOME MORTGAGES
Conventional mortgages
Terms1
Period
Yields (per cent) in
primary market
FHAinsured
loans—Yield
in private
secondary
m arket5
Contract
rate (per
cent)
Fees and
charges
(per cent)2
Maturity
(years)
Loan/price
ratio
(per cent)
Purchase
price (thous.
of dollars)
Loan
amount
(thous. of
dollars)
FHLBB
series 3
HUD
series 4
1971...........................
1972...........................
1973...........................
1974...........................
7.60
7.45
7.78
8.71
.87
.88
1.11
1 .30
26.2
27.2
26.3
26.3
74.3
76.8
77.3
75.8
36.3
37.3
37.1
40.1
26.5
28.1
28.1
29.8
7.74
7.60
7.95
8.92
7.75
7.64
8.30
9.22
1974—Feb.................
Mar................
Apr.................
May...............
June...............
July................
Aug................
Sept................
Oct.................
N o v ............
Dec................
8.40
8,43
8.47
8.55
8.65
8.75
8.87
8.97
8.95
9 04
9.13
1.33
1.35
1.21
1.20
1.25
1.28
1.32
1.30
1.37
1.40
1 .44
25.9
26.4
26.1
25.8
26.3
26.1
26.4
26.1
26.7
26 2
27.5
76.5
77.3
77.3
76.8
76.9
74.4
75.3
74.8
74.7
73.6
75.5
37.8
39.1
38.5
37.9
39.7
40.5
40.2
42.4
42.3
41.3
42.4
28.5
29.5
29.2
28.8
30.1
29.6
29.5
31.1
30.7
30 2
31 .3
8.62
8.64
8.67
8.74
8.85
8.96
9.09
9.19
9.17
9 27
9.37
8.55
8.60
8.90
9.15
9.25
9.40
9.60
9.80
9.70
9.55
9.45
8.54
8.66
9.17
9.46
9.46
9.85
10.30
10.38
10.13
1975—Jan.................
Feb.p..............
9.09
8.88
73.8
76.7
43.2
44.2
31.6
32.9
9.33
9.11
9.15
9.05
8.99
8.84
1.51
1.46
26.7
26.8
1 Weighted averages based on probability sample survey of character
istics of mortgages originated by major institutional lender groups (in
cluding mortgage companies) for purchase of single-family homes, as
compiled by Federal Home Loan Bank Board in cooperation with Federal
Deposit Insurance Corporation. Data are not strictly comparable with
earlier figures beginning Jan. 1973.
2 Fees and charges—related to principal mortgage amount—include
loan commissions, fees, discounts, and other charges, but exclude closing
costs related solely to transfer of property ownership.
3 Effective rate, reflecting fees and charges as well as contract rates
NOTE TO TABLE AT BOTTOM OF PAGE A-44:
American Life Insurance Association data for new commitments of
$100,000 and over each on mortgages for multifamily and nonresidential
nonfarm properties located largely in the United States. The 15 companies
account for a little more than one-half of both the total assets and the
nonfarm mortgages held by all U.S. life insurance companies. Averages,
which are based on number of loans, vary in part with loan composition
by type and location of property, type and purpose of loan, and loan
7.70
7.52
9.55
9.51
(as shown in first column of this table) and an assumed prepayment at
end of 10 years.
4 Rates on first mortgages, unweighted and rounded to the nearest
5 basis points.
5 Based on opinion reports submitted by field offices of prevailing
local conditions as of the first of the succeeding month. Yields are derived
from weighted averages of private secondary market prices for Sec. 203,
30-year mortgages with minimum downpayment and an assumed pre
payment at the end of 15 years. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract interest rates.
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.
A 44
REAL ESTATE CREDIT □ APRIL 1975
FEDERAL NATIONAL MORTGAGE ASSOCIATION AUCTIONS OF COMMITMENTS TO BUY HOME MORTGAGES
Date of auction
1974
Item
Oct. 21
Amounts (millions of dollars):
Govt.-underwritten loans
Offered1.................................
Accepted...............................
Conventional loans
Offered i ................................
Accepted...............................
Average yield (per cent) on short
term commitments2
Govt.-underwritten loans........
Conventional loans..................
Nov. 4 Nov. 18
1975
Dec. 2
Dec. 16 Dec. 30
Jan. 13
Jan. 27
Feb. 10 Feb. 24 Mar. 10 Mar. 24
34.5
26.0
47.8
24.7
25.7
17.6
52.5
23.3
49.6
43.3
35.7
31.8
25.3
21.2
41.4
28.6
24.6
18.1
36.2
23.8
99.2
60.1
460.5
321.4
14.1
12.2
20.4
12.1
20.6
6.8
24.0
12.0
20.1
18.5
17.2
10.1
17.9
14.9
11.1
10.6
14.8
9.1
20.0
9.1
34.4
21.1
60.7
35.8
10.11
10.27
9.93
10.11
9.81
9.92
9.61
9.80
9.52
9.72
9.47
9.59
9.37
9.50
9.12
9.39
8.98
9.20
8.87
9.04
8.78
8.96
8.85
9.00
1 Mortgage amounts offered by bidders are total bids received.
2 Average accepted bid yield (before deduction of 38 basis-point fee
paid for mortgage servicing) for home mortgages assuming a prepayment
period of 12 years for 30-year loans, without special adjustment for
FNMA commitment fees and FNMA stock purchase and holding require
ments. Commitments mature in 4 months.
MAJOR HOLDERS OF FHA-INSURED AND VA-GUARANTEED RESIDENTIAL MORTGAGE DEBT
(End of period, in billions of dollars)
Holder
Dec. 31,
1972
June 30,
1973
Sept. 30,
1973
Dec. 31,
1973
Mar. 31,
1974
June 30,
1974
Sept. 30,
1974
All holders...................................................
F H A .........................................................
VA............................................................
Commercial banks......................................
FH A .........................................................
VA............................................................
Mutual savings banks.................................
FH A .........................................................
VA............................................................
Savings and loan a ssn s..............................
FH A .........................................................
VA............................................................
Life insurance cos........................................
FH A .........................................................
VA............................................................
Others..........................................................
FH A .........................................................
VA............................................................
131.1
86.4
44.7
11.7
8.5
3.2
28.6
16.0
12.6
28.9
15.4
13.5
14.7
10.0
4.7
47.2
36.5
10.7
133.6
86.4
47.2
11.7
8.5
3.2
28.7
15.8
12.9
133.8
85.6
48.2
11.7
8.4
3.3
28.6
15.7
12.9
135.0
85.0
50.0
11.5
8.2
3.3
28.4
15.5
12.9
136.7
85.0
51.7
11.1
7.8
3.3
28.2
15.3
12.9
137.8
84.9
52.9
11.0
7.6
3.4
27.9
15.1
12.8
138.6
84.1
54.5
10.8
7.4
3.4
27.7
14.9
12.8
29.7
13.1
8.8
4.3
56.1
29.8
12.9
8.7
4.2
57.4
}
29.8
14.0
9.5
4.5
49.4
}
N o t e .—VA-guaranteed residential mortgage debt is for 1- to 4-family
properties while FHA-insured includes some debt in multifamily structures.
1
30.1
13.7
9.3
4.4
50.0
29.7
13.6
9.2
4.4
52.1
J
29.8
13.3
9.0
4.3
54.3
}
Detail by type of holder partly estimated by Federal Reserve for first
and third quarters, and for most recent quarter.
COMMITMENTS OF LIFE INSURANCE COMPANIES FOR INCOME PROPERTY MORTGAGES
Number
of loans
Total
amount
committed
(millions of
(dollars)
912
1,664
2,132
2,140
1973—Sept.
Oct..
Nov.
Dec.
1974—Jan..
Feb.,
Mar.
Apr.
May
June
July.
Aug.
Sept.
Period
197
197
197
197
0
1
2
3
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
2,341.1
3.982.5
4.986.5
4,833.3
2,567
2,393
2,339
2,259
9.93
9.07
8.57
8.76
22/8
22/10
23/3
23/3
74.7
74.9
75.2
74.3
10.8
10.0
9.6
9.5
1.32
1.29
1.29
1.29
11.1
10.4
9.8
10.0
176
161
95
55
351.5
203.3
313.5
152.8
1,997
1,263
3,300
2,778
8.94
9.09
9.17
9.18
22/6
22/6
22/2
23/3
73.7
73.6
74.3
74.8
9.3
9.4
9.7
9.9
1.23
1.24
1.25
1.27
10.3
10.3
10.4
10.3
61
90
117
141
148
147
121
105
95
91.5
209.4
238.8
306.7
352.4
287.5
234.6
312.4
241.6
1,501
2,327
2,041
2,175
2,381
1,956
1,939
2,975
2,543
9.07
9.10
8.99
9.02
9.31
9.35
9.60
9.80
10.04
20/11
23/1
21/11
21/9
21/11
20/10
20/0
22/10
20/11
73.7
73.6
74.2
73.8
74.2
75.7
74.1
74.3
74.4
9.7
9.8
9.6
9.9
10.0
10.1
10.1
10.2
10.3
1.24
1.33
1.31
1.33
1.30
1.24
1.26
1.31
1.29
10.4
10.2
10.1
10.2
10.4
10.7
10.8
10.7
11.1
See N ote on preceding page.
Averages
APRIL 1975 □ CONSUMER CREDIT
A 45
TOTAL CREDIT
(In millions of dollars)
Noninstalment
Instalment
End of period
Total
Auto
mobile
paper
Total
Other
consumer
goods
paper
Home
improve
ment
loansi
Personal
loans
Total
Single
payment
loans
Charge accounts
Credit
cards2
Retail
outlets
Service
credit
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
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
1970.....................
1971.....................
1972.....................
1973.....................
1974....................
127,163
138,394
157,564
180,486
190,121
102,064
111,295
127,332
147,437
156,124
35,184
38,664
44,129
51,130
51,689
31,465
34,353
40,080
47,530
52,009
5,070
5,413
6,201
7,352
8,162
30,345
32,865
36,922
41,425
44,264
25,099
27,099
30,232
33,049
33,997
9,675
10,585
12,256
13,241
12,979
6,163
6,397
7,055
7,783
8,012
1,805
1,953
1,947
2,046
2,122
7,456
8,164
8,974
9,979
10,884
1974— Feb...........
Mar..........
Apr...........
May.........
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........
177,522
177,572
179,495
181,680
183,425
184,805
187,369
187,906
188,023
188,084
190,121
145,927
145,768
147,047
148,852
150,615
152,142
154,472
155,139
155,328
155,166
156,124
50,386
50,310
50,606
51,076
51,641
52,082
52,772
52,848
52,736
52,325
51,689
46,781
46,536
47,017
47,588
48,099
48,592
49,322
49,664
49,986
50,401
52,009
7,343
7,430
7,573
7,786
7,930
8,068
8,214
8,252
8,287
8,260
8,162
41,417
41,492
41,851
42,402
42,945
43,400
44,164
44,375
44,319
44,180
44,264
31,595
31,804
32,448
32,828
32,810
32,663
32,897
32,767
32,695
32,918
33,997
13,159
13,188
13,315
13,331
13,311
13,192
13,202
13,131
13,003
12,950
12,979
6,136
6,097
6,556
6,948
7,002
6,936
6,983
6,876
7,027
7,174
8,012
1,882
1,842
1,878
1,999
2,104
2,204
2,282
2,277
2,156
2,144
2,122
10,418
10,677
10,699
10,550
10,393
10,331
10,430
10,483
10,509
10,650
10,884
1975—Jan...........
Feb...........
187,080
185,381
153,952
152,712
50,947
50,884
51,142
50,136
8,048
7,966
43.815
43,726
33,128
32,669
12,675
12,560
7,162
6,468
2,153
2,074
11,138
11,567
1 Holdings of financial institutions; holdings of retail outlets are in
cluded in “Other consumer goods paper.”
2 Service station and miscellaneous credit-card accounts and homeheating-oil accounts.
N o t e .—Consumer credit estimates cover loans to individuals for
household, family, and other personal expenditures, except real estate
mortgage loans. For back figures and description of the data, see “Con
sumer Credit,” Section 16 ( N e w ) of Supplement to Banking and Monetary
Statistics, 1965, and B u l l e t in s for Dec. 1968 and Oct. 1972.
CONSUMER CREDIT HELD BY COMMERCIAL BANKS
(In millions of dollars)
Instalment
End of period
Total
Automobile paper
Total
Purchased
Direct
Nonin
stalment
Other consumer goods paper
Mobile
homes
Other
Home
improve
ment
loans
4,166
4,681
5,469
1,307
2,639
5,387
6,082
2,571
2,647
2,731
2,858
2,996
798
1,081
Credit
cards
Personal loans
Check
credit
Other
Single
payment
loans
8,160
8,699
6,690
6,946
7,478
8,374
8,553
196
196
196
196
196
5
6
7
8
9
35,652
38,265
40,630
46,310
50,974
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
197
197
197
197
197
0
1
2
3
4
53,867
60,556
70,640
81,248
84,010
45,398
51,240
59,783
69,495
72,510
12,918
13,837
16,320
19,038
18,582
7,888
9,277
10,776
12,218
11,787
4,423
5,786
7,223
7,645
3,792
4,419
5,288
6,649
8,242
7,113
4,501
5,122
6,054
6,414
3,071
3,236
3,544
3,982
4,458
1,336
1,497
1,789
2,144
2,424
9,280
10,050
11,158
12,187
12,958
8,469
9,316
10,857
11,753
11,500
1974—Feb..
Mar.
Apr.,
May
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.
80,909
80,918
81,750
82,527
83,417
84,078
84,982
85,096
84,887
84,360
84,010
69,246
69,232
69,944
70,721
71,615
72,384
73,302
73,455
73,372
72,896
72,510
18,770
18,775
18,896
19,037
19,220
19,377
19,511
19,389
19,246
18,981
18,582
12,028
11,985
12,039
12,100
12,169
12,250
12,344
12,314
12,195
12,031
11,787
7,285
7,333
7,399
7,491
7,564
7,623
7,681
7,706
7,709
7,700
7,645
6,770
6,667
6,761
6,887
7,076
7,222
7,491
7,638
7,749
7,846
8,242
6,063
6,082
6,208
6,323
6,420
6,484
6,541
6,527
6,530
6,469
6,414
3,937
3,958
4,028
4,135
4,224
4,316
4,409
4,445
4,480
4,490
4,458
2,173
2,169
2,180
2,199
2,230
2,266
2,312
2,348
2,376
2,362
2,424
12,220
12,263
12,433
12,549
12,712
12,846
13,013
13,088
13,087
13,017
12,958
11,663
11,686
11,806
11,806
11,802
11,694
11,680
11,641
11,515
11,464
11,500
1975—Jan..
Feb.
82,986
82,229
71,776
71,151
18,230
18,104
11,581
11,497
7,587
7,522
8,325
8,149
6,323
6,272
4,399
4,359
2,448
2,447
12,883
12,801
11,210
11,078
See N ote to table above.
6, 357
7,011
7,748
A 46
CONSUMER CREDIT □ APRIL 1975
INSTALMENT CREDIT HELD BY NONBANK LENDERS
(In millions of dollars)
Finance companies
End of period
Total
Other c Dnsumer
goods paper
Auto
mobile
paper
Mobile
homes
Other
Other financial lenders
Home
improve
ment
loans
Per
sonal
loans
Total
Credit
unions
232
214
192
166
174
10,058
10,315
10,688
11,481
12,485
8,289
9,315
10,216
11,717
13,722
7,324
8,255
9,003
10,300
12,028
965
1,060
1,213
1,417
1,694
Mis
cellaneous
lenders i
Auto
mobile
dealers
Other
retail
outlets
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
Total
1965.......................
1966.......................
1967.......................
1968.......................
1969.......................
23,851
24,796
24,576
26,074
27,846
9,218
9,342
8,627
9,003
9,412
1970.......................
1971.......................
1972.......................
1973.......................
1974.......................
27,678
28,883
32,088
37,243
38,925
9,044
9,577
10,174
11,927
12,435
2,464
2,561
2,916
3,378
3,570
3,237
3,052
3,589
4,434
4,751
199
247
497
917
993
12,734
13,446
14,912
16,587
17,176
15,088
17,021
19,511
22,567
25,216
12,986
14,770
16,913
19,609
22,116
2,102
2,251
2,598
2,958
3,100
13,900
14,151
15,950
18,132
19,473
218
226
261
299
286
13,682
13,925
15,689
17,833
19,187
1974— Feb..............
Mar.............
Apr.............
May............
June...........
July.............
Aug.............
Sept.............
Oct..............
Nov.............
Dec.............
37,148
37,005
37,291
37,751
38,159
38,479
38,943
38,921
38,901
38,803
38,925
11,710
11,624
11,684
11,810
11,957
12,040
12,267
12,345
12,458
12,462
12,435
3,406
3,324
3,364
3,413
3,449
3,505
3,539
3,573
3,597
3,603
3,570
4,486
4,497
4,547
4,583
4,626
4,664
4,680
4,662
4,658
4,611
4,751
968
1,018
1,057
1,097
1,114
1,118
1,097
1,073
1,054
1,021
993
16,578
16,542
16,639
16,848
17.013
17,152
17,360
17,268
17,134
17,106
17,176
22,413
22,562
22,753
23,203
23,630
23,968
24,677
25,085
25,204
25,195
25,216
19,430
19,550
19,704
20,053
20,501
20,825
21,402
21,792
21,893
21,975
22,116
2,983
3,012
3,049
3,150
3,129
3,143
3,275
3,293
3,311
3,220
3,100
17,120
16,969
17,059
17,177
17,211
17,311
17,550
17,678
17,851
18,272
19,473
293
292
293
294
296
297
299
298
296
292
286
16,827
16,677
16,766
16,883
16,915
17,014
17,251
17,380
17,555
17,980
19,187
1975—Jan..............
Feb.............
38,340
38,194
12,315
12,406
3,559
3,539
4,642
4,580
967
923
16,857
16,746
25,032
25,213
21.966
22,089
3,066
3,124
18,804
18,154
282
280
18,522
17,874
i
4,343
4,925
5,069
5,424
5,' 775
Retail outlets
Savings and loan associations and mutual savings banks.
See also
N ote
to table at top of preceding page.
FINANCE RATES ON SELECTED TYPES OF INSTALMENT CREDIT
(Per cent per annum)
Finance companies
Commercial banks
New
automo
biles
(36 mos.)
Mobile
homes
(84 mos.)
Other
consumer
goods
(24 mos.)
Personal
loans
(12 mos.)
Creditcard
plans
1973—Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct..
Nov.
Dec.
10.05
10.04
10.04
10.05
10.08
10.10
10.25
10.44
10.53
10.49
10.49
10.76
10.67
10.64
10.84
10.57
10.84
10.95
11.06
10.98
11.19
11.07
12.51
12.48
12.50
12.48
12.57
12.51
12.66
12.67
12.80
12.75
12.86
12.76
12.71
12.74
12.78
12.78
12.75
12.84
12.96
13.02
12.94
13.12
1974—Jan..
Feb.
Mar.
Apr.
May
June
July.
Aug.
Sept.
Oct.
Nov.
Dec.
10.55
10.53
10.50
10.51
10.63
10.81
10.96
11.15
11.31
11.53
11.57
11.62
11.09
11.25
10.92
11.07
10.96
11.21
11.46
11.71
11.72
11.94
11.87
11.71
12.78
12.82
12.82
12.81
12.88
13.01
13.14
13.10
13.20
13.28
13.16
13.27
1975—Jan..
Feb.
11.62
11.51
11.66
12.14
13.28
13.20
Month
Mobile
homes
Other
consumer
goods
Personal
loans
12.54
18.92
20.79
12.73
18.88
20.76
12.77
18.93
20.55
12.90
18.69
20.52
13.12
18.77
20.65
20.68
New
Used
17.16
17.19
17.19
17.22
17.24
17.21
17.22
17.23
17.23
17.23
17.24
11.86
11.85
11.88
11.91
11.94
12.02
12.13
12.28
12.34
12.40
12.42
16.20
16.32
16.44
16.52
16.61
16.75
16.86
16.98
17.11
17.21
17.31
12.96
13.02
13.04
13.00
13.10
13.20
13.42
13.45
13.41
13.60
13.47
13.60
17.25
17.24
17.23
17.25
17.25
17.23
17.20
17.21
17.15
17.17
17.16
17.21
12.39
12.33
12.29
12.28
12.36
12.50
12.58
12.67
12.84
12.97
13.06
13.10
16.56
16.62
16.69
16.76
16.86
17.06
17.18
17.32
17.61
17.78
17.88
17.89
13.24
18.90
13.15
18.69
20.57
13.07
18.90
20.57
13.60
13.45
17.16
17.24
13.08
17.27
N o t e .—Rates are reported on an annual percentage rate basis as
specified in Regulation Z (Truth in Lending) of the Board of Governors.
Commercial bank rates are “most common” rates for direct loans with
Automobiles
13.21
19.24
20.78
13.42
19.30
20.93
13.60
19.49
21.16
13.60
19.58
21.24
specified maturities; finance company rates are weighted averages for
purchased contracts (except personal loans). For back figures and descrip
tion of the data, see Bulletin for Sept. 1973.
APRIL 1975 □ CONSUMER CREDIT
A 47
INSTALMENT CREDIT EXTENDED AND REPAID
(In millions of dollars)
Type
Period
Total
Automobile
paper
Other
consumer
goods paper
Holder
Home
improve
ment loans
Personal
loans
Commercial
banks
Finance
companies
Other
financial
lenders
Retail
outlets
Extensions
1967...........................
1968...........................
1969...........................
87,171
99,984
109,146
26,320
31,083
32,553
29,504
33,507
38,332
2,369
2,534
2,831
28,978
32,860
35,430
31,382
37,395
40,955
26,461
30,261
32,753
11,238
13,206
15,198
18,090
19,122
20,240
1970...........................
1971...........................
1972...........................
1973...........................
1974...........................
112,158
124,281
142,951
165,083
166,478
29,794
34,873
40,194
46,453
42,756
43,873
47,821
55,599
66,859
71,077
2,963
3,244
4,006
4,728
4,650
35,528
38,343
43,152
47,043
47,995
42,960
51,237
59,339
69,726
69,554
31,952
32,935
38,464
43,221
41,809
15,720
17,966
20,607
23,414
24,510
21,526
22,143
24,541
28,722
30,605
1974—Feb.................
Mar................
Apr.................
May...............
June...............
July................
Aug...............
Sept................
Oct.................
Nov................
Dec................
13,541
13,823
14,179
14,669
14,387
14,635
14,394
14,089
13,626
12,609
12,702
3,389
3,484
3,545
3,769
3,731
3,812
3,887
3,835
3,369
3,062
3,205
5,647
5,933
6,034
6,156
6,043
6,164
5,993
5,935
5,948
5,700
5,798
409
424
447
468
425
416
388
302
348
321
294
4,096
3,982
4,153
4,276
4,188
4,243
4,126
4,017
3,961
3,526
3,405
5,794
5,710
5,838
6,023
6,076
6,129
6,034
6,050
5,600
5,390
5,012
3,656
3,497
3,671
3,832
3,729
3,685
3,476
3,408
3,229
2,823
3,240
1,861
1,976
2,054
2,140
2,040
2,201
2,290
2,079
2,160
1,863
1,901
2,230
2,640
2,616
2,674
2,542
2,620
2,594
2,552
2,637
2,533
2,549
1975—Jan.................
Feb.................
12,859
13,465
3,348
3,856
5,430
5,561
289
302
3,792
3,746
5,368
5,649
3,068
3,195
2,048
2,104
2,375
2,517
Repayments
1967...........................
1968...........................
1969...........................
83,988
91,667
99,786
26,534
27,931
29,974
27,847
31,270
34,645
2,202
2,303
2,457
27,405
30,163
32,710
29,549
32,611
36,470
26,681
28,763
30,981
10,337
11,705
13,193
17,421
18,588
19,142
1970...........................
1971...........................
1972...........................
1973...........................
1974...........................
107,199
115,050
126,914
144,978
157,791
30,137
31,393
34,729
39,452
42,197
40,721
44,933
49,872
59,409
66,598
2,506
2,901
3,218
3,577
3,840
33,835
35,823
39,095
42,540
45,156
40,398
45,395
50,796
60,014
66,539
31,705
31,730
35,259
38,066
40,127
14,354
16,033
18,117
20,358
21,861
20,742
21,892
22,742
26,540
29,264
1974—Feb.................
Mar................
Apr.................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................
12,870
13,206
13,026
13,407
13,301
13,310
12,882
13,412
13,224
13,009
13,516
3,394
3,544
3,498
3,601
3,577
3,563
3,443
3,604
3,470
3,423
3,668
5,340
5,596
5,483
5,607
5,615
5,610
5,444
5,700
5,499
5,561
6,037
323
308
312
315
335
320
309
279
321
325
341
3,813
3,758
3,733
3,884
3,774
3,817
3,686
3,829
3,934
3,700
3,470
5,430
5,479
5,470
5,573
5,564
5,541
5,463
5,808
5,542
5,671
5,803
3,423
3,452
3,375
3,528
3,405
3,513
3,166
3,371
3,250
2,981
3,308
1,692
1,827
1,784
1,855
1,835
1,819
1,851
1,723
1 ,962
1 ,860
1,822
2,325
2,448
2,397
2,451
2,497
2,437
2,402
2,510
2,470
2,497
2,583
1975—Jan.................
Feb.................
13,260
13,228
3,534
3,605
5,549
5,632
336
350
3,841
3,641
5,669
5,747
3,331
3,134
1,827
1,824
2,433
2,523
Net change
1967...........................
1968...........................
1969...........................
3,183
8,317
9,360
-2 1 4
3,152
2,579
1,657
2,237
3,687
167
231
374
1,573
2,697
2,720
1,833
4,784
4,485
-2 2 0
1,498
1,772
901
1,501
2,005
669
534
1,098
1970...........................
1971...........................
1972...........................
1973...........................
1974...........................
4,959
9,231
16,037
20,105
8,687
-343
3,480
5,465
7,001
559
3,152
2,888
5,727
7,450
4,479
457
343
788
1,151
810
1,693
2,520
4,057
4,503
2,839
2,977
5,842
8,543
9,712
3,015
-1 6 8
1,205
3,205
5,155
1,682
1,366
1,933
2,490
3,056
2,649
784
251
1,799
2,182
1,341
1974—Feb.................
Mar................
Apr.................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec.................
671
617
1,153
1,262
1,086
1,325
1,512
677
402
-4 0 0
-8 1 4
-5
-6 0
47
168
154
249
444
231
-101
-361
-463
307
337
551
549
428
554
549
235
449
139
-239
86
116
135
153
90
96
79
23
27
-4
-4 7
283
224
420
392
414
426
440
188
27
-174
-6 5
364
231
368
450
512
588
571
242
58
-281
-791
233
45
296
304
324
172
310
37
-21
-158
-6 8
169
149
270
285
205
382
439
356
198
3
79
-9 5
192
219
223
45
183
192
42
167
36
-3 4
1975—Jan.................
Feb.................
-401
237
-1 8 6
251
-119
-7 1
-4 7
-4 8
-4 9
105
-301
-9 8
-263
61
221
280
-5 8
-6
N o t e .—Monthly estimates are seasonally adjusted and include adjust
ments for differences in trading days. Annual totals are based on data
not seasonally adjusted.
Estimates are based on accounting records and often include finance
charges. Renewals and refinancing of loans, purchases and sales of in
stalment 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 Supplement to Banking and Monetary Statistics, 1965,
and B u l l e t in s for Dec. 1968 and Oct. 1972.
A 48
INDUSTRIAL PRODUCTION: S.A. □ APRIL 1975
MARKET GROUPINGS
(1967 = 100)
Grouping
Total index...................................
Products, total..................................
Final products ...............................
Consumer goods.......................
Equipment................................
Intermediate products.................
Materials...........................................
1967
propor
tion
1974
age
1974
Mar.
Apr.
May
June
July
Aug.
1975
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.P Mar.*
100.0 124.8 124.7 124.9 125.7 125.8 125.5 125.2 125.6 124.8 121 .7 117.4 113.7 110.7 109.6
62.21 123.1 122.6 122.7 123.8 124.0 124.0 123.5 123.6 122.9 121.4 118.7
48.95 121.7 121.0 120.8 122.4 122.6 122.8 122.1 122.6 122.3 120.9 1 118.2
28.53 128.8 128.5 128.5 ! 129.7 130.2 130.0 129.8 128.8 128.2 126.3 123.4
20.42 111.8 110.1 110.1 112.2 112.0 113.0 111.4 113.8 114.0 113.2 110.7
13.26 128.3 128.2 129.4 129.2 128.9 127.8 128.6 127.6 125.3 123.0' 120.5
37.79 127.4 128.8 128.7 129.1 128.8 128.0 128.5 129.3 128.1 122.1 114.8
115.6 113.2 112.2
115.1
120.6
107.4
117.5
110.5
112.8
118.0
105.3
114.5
106.5
112.2
118.7
103.3
112.3
104.9
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........... .
7.86 128.1 128.5 130.9 132.8 133.5 131.6 131.8 129.1
126.5 119.7
110.1
104.2 100.2 103.1
2.84 110.4 108.0 113.8 116.1 117.3 113.5 114.9 111.6 114.7 102.1 87.5 80.9 78.5 87.5
1.87 94.9 86.3 97.7 100.3 99.6 101.5 103.1 99.6 108.4 91 .0' 69.8 62.6 58.9 73.1
.97 140.1 149.8 144.7 146.5 151.3 136.9 137.6 134.5 126.9 123.6 121 .5 116.1 116.1 115.0
5.02
1.41
.92
.49
1.08
2.53
138.1
132.1
149.0
100.3
153.5
135.0
140.1 140.6 142.3 142.7 141.8 141.2 139.0 133.2 129.7 123.0 117.4 112.6 112.0
135.8 135.2 137.7 141.2 139.3 139.1 133.2 120.9 115.3 102.5 93.3 88.3
150.0 148.6 152.6 155.3 151.7 156.2 150.2 139.5 131.9 119.8 106.1 102.1
154.5 158.2 157.4 157.2 155.3 157.1 155.4 151.8 144.7 143.8 136.7 134.3
136.3 136.0 138.3 137.4 137.3 135.8 135.3 132.2 131 .4 125.5 122.5 117.0 116.0
20.67 129.1 128.7 127.6 128.5 129.0 129.4 129.1
128.7 128.9 128.8
128.4 126.9 124.8 124.7
145.7
157.7
130.9
144.6
156.2
146.2
159.1
126.7
147.3
159.0
4.32 109.0 112.0 106.2 107.0 108.9 108.6 106.4 106.0 104.5 103.1 102.0 95.4
16.34 134.4 133.1 133.2 134.2 134.3 134.9 135.1 134.8 135.4 135.6 135.5 135.2 133.1 132.7
8.37 125.4 125.7 123.9 124.7 124.7 125.5 124.4 124.4 125.2 126.2 125.3 125.7 124.9 124.7
7.98
2.64
1.91
3.43
2.25
143.6
158.1
125.5
143.0
152.5
140.8
160.3
119.1
138.2
149.0
143.1
159.7
119.4
143.7
151.6
144.3
157.5
124.7
145.1
153.2
144.4
156.8
123.9
146.0
155.3
144.7
154.6
124.4
148.4
157.8
146.5
159.0
129.5
146.2
155.4
146.1
159.8
128.5
145.4
155.5
145.3
155.2
127.4
147.9
159.3
145.2
160.2
123.8
145.8
154.7
141 .8 141 .0
156.3
119.8
143.0
Equipment
Business equipment.............................
Industrial equipment.....................
Building and mining equip........
Manufacturing equipment........
Power equipment.......................
Commercial, transit, farm equip..
Commercial equipment.............
Transit equipment.....................
Farm equipment........................
Defense and space equipment ............
Military products...........................
12.74 129.5 127.6 127.9 130.2 130.2 131.3 128.8 132.3
6.77
1.45
3.85
1.47
128.8
136.0
121.8
139.9
126.8
131.3
121.1
137.3
127.6
133.5
122.1
136.6
129.6
135.0
124.1
138.4
129.0
137.4
121.9
139.0
130.3
136.2
124.9
138.4
129.6
136.5
123.1
139.6
132.0
139.8
124.4
144.2
5.97
3.30
2.00
.67
130.2
141.2
109.4
138.3
128.7
140.8
109.4
126.1
128.2
140.4
106.7
131.2
130.9
141.5
110.2
140.2
131.5
142.7
110.4
140.6
132.5
143.5
111.4
141.4
127.6
134.0
109.3
150.5
7.68
82.4
81.0
80.6
82.2
81.7
82.6
82.7
5.15
81.2
80.5
79.9
81.2
79.7
81.4
81.5
132.0 131.0 127.1
121.9 119.5
116.7
130.9
141.2
122.5
142.8
129.3
140.1
119.4
144.5
126.7
137.4
116.5
142.6
132.8
143.3
111.8
144.1
133.2
144.1
111.2
145.4
132.9
143.1
109.8
151.9
127.6 120.8 117.9 114.1
139.3 133.3 129.6 125.1
102.9 92.5 92.5 87.7
143.7 143.8 136.3
83.1
84.1
83.7
82.3
82.5
81.8
83.4
81.3
123.0
137.8
112.2
136.5
83.4
81.0
120.8
136.5
110.8
131 .1
81.9
79.8
119.0
137.0
107.7
130.2
81 .0
79.2
Intermediate products
Construction products.......................
Misc. intermediate products.............
5.93 129.6 129.6 130.8 130.8 129.6 128.2 128.0 127.4 123.5 121.3 118.3 116.9 112.7 110.5
7.34 127.3 127.5 128.2 127.9 128.4 127.5 129.2 127.8 126.8 124.2 122.5 118.1 115.8
Materials
127.6 127.2 127.3
4.75 112.1 110.6 112.5
5.41 123.8 121.6 120.1
10.75 136.3 137.5 137.5
128.3 127.5 125.8 128.1 129.2 129.3 123.5
Durable goods materials .....................
20.91
Nondurable goods materials...............
13.99 128.3 131.9 131.9 130.9 131.3 131.1 130.4 129.3 126.8 122.1
Consumer durable parts................
Equipment parts.............................
Durable materials nec....................
Textile, paper, and chem. m at.. . .
Nondurable materials n.e.c...........
Fuel and power, industrial................
114.2 110.3 105.7 103.8
114.7 114.1 117.2 117.5 117.2 115.2 104.1 91 .7 83.6 80.1 81 .2
122.5 122.1 120.6 125.8 125.0 124.0 122.2 118.3 116.8 110.5 107.9
137.2 136.2 132.3 133.9 136.6 138.3 132.7 122.9 118.9 114.7 111.5
116.2 109.2 105.5
104.0
8.58 139.4 143.1 143.9 143.3 143.6 143.6 143.2 142.2 138.1 131.1 122.9 113.0 107.9 105.1
5.41 110.6 114.7 112.7 111.4 111.9 111.3 110.0 108.9 108.9 107.8 105.7 103.2 101 .6 102.2
2.89 122.6 122.6 123.2 124.7 126.3 128.0 123.5 129.0 126.4 112.7 113.0 118.5 117.9 118.2
Supplementary groups
Home goods and clothing.................
Containers..........................................
9.34 124.6 127.0 124.6 126.0 127.1 126.4 125.0 123.8 120.0 117.4 113.2 107.2 103.6 103.8
1.82 139.3 151.4 147.0 141.5 141.6 142.1 140.4 136.7 131.5 127.6 120.3 125.1 122.1
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 opposite page.
286.3
221.4
156.3
65.3
64.9
443.9 445.4 449.5 449.7 448.1 446.9 447.1
342.3
232.7
109.4
101.9
342.9
233.8
109.0
102.5
347.2
235.9
111.2
102.2
347.7
236.6
111.2
102.0
346.6
235.0
111.6
101.2
345.0
235.1
109.9
102.1
445.7 439.0 426.7 417.9 409.0 406.6
346.1 346.5 341.3 331.0 323.5 317.1 316.9
233.1 233.7 228.9 222.3 217.9 213.2 215.5
112.8 112.7 112.4 108.8 105.5 103.9 101.6
101.0 99.4 97.4 95.8 94.4 91.8 89.9
APRIL 1975 □ INDUSTRIAL PRODUCTION: S.A.
A 49
INDUSTRY GROUPINGS
(1967 = 100)
Grouping
Manufacturing.........
Durable................
Nondurable..........
Mining and utilities.
Mining.............
Utilities................
1967
pro
por
tion
1974
aver
age
1974
Mar.
Apr.
May
June
July
Aug.
1975
Sept.
Oct.
Nov.
Dec.
88.55 124.4 124.6 124.8 125.7 125.6 125.2 125.2 725.5 124.6 120.9 116.1
52.33
36.22
11.45
6.37
5.08
120.8
129.7
127.0
109.3
149.2
120.4
130.9
127
112.2
146.5
120.7
130.4
127
111.3
148.7
122.1
130.9
128.0
111.0
149.2
122.1
130.8
128.1
110.2
150.6
121.6
130.8
128.9
110.2
152.4
121.6
130.4
127.4
107.3
152.6
122.1
130.5
128.7
109.2
153.1
121 .6
128.9
128.5
110.5
151 .2
112.2
121 .9
125.7
104.4
152.6
Jan.
Feb.* Mar.
112.3
109.0 107.8
107.9
118.7
125.6
107.6
148.0
103.9
116
124.4
106.
146.6
102.9
115.0
124.3
107.0
146.2
.128.4 126.9 126.5 127.2 127.6 124.4 116.0 112.6
106.1
103.8
115.5 117.5 117.7 117.3 117.8 118.8 118.4 114.9 109.6 105.1
101.6
101.5
117.9
125.4
125.9.
105.0
152.3
Durable manufactures
Primary and fabricated metals ............
12.55 127.8 128.2 127.5 128
Machinery and allied goods ...............
32.44 116.3 114.
Primary metals.................................
Iron and steel, subtotal................
Fabricated metal products..............
Machinery.......................................
Nonelectrica 1 mach inery............
Electrical machinery..................
Transportation equipment............
Motor vehicles and parts..........
Aerospace and misc. trans. eq..
Instruments.....................................
Ordnance, private and Govt.........
6.61 124.5 125.3 124.0 124.6 124.7 123.2 121.9 123.0 126.0 121 .0 108.6 107.4 100.7 97.4
4.23 120.2 119.6 116.4 118.0 118.5 119.9 120.7 119.1 123.9 117.7 107.9 110.6 104.1 101 .6
5.94 131 .4 131.6 131.3 131
132.5 131.1 131.5 132.0 129.6 128.2 124.1 118.3 112.1 110.7
17.39
9.17
8.22
9.29
4.56
4.73
2.07
3.69
129.7
133.7
125.2
96.9
113.1
81 .2
143.
86.2
128.4
129.
126.
95.0
110.2
80.3
142.
84.9
128.2
130.7
125.3
97.8
116.4
80.0
143.8
84.3
129.7
131
127.4
100.6
119.6
82.4
146.1
86.1
130.4
131.7
129.0
99.4
116.9
82.6
147
86.4
129.9
131.1
128.4
98.7
117.3
80.9
146.7
87.2
130.5
136.4
123.7
99.9
117
82.6
146.7
87.1
132.5
137
126.4
100.4
118.6
82.8
144.9
87.5
Lumber, clay, and glass ..................
4.4 4 123.8 128.1 128.9 128.0 126.4 125.5 123.4 120.6
Furniture and miscellaneous.. . .
2.90 136.2 136
Lumber and products................
Clay, glass, and stone products.. . .
Furniture and fixtures...........
Miscellaneous manufactures.
131 .1
137.4
124.0
102.1
123.0
81.9
142.0
87.2
128.9
135.1
121 .7
93.7
107.1
80.9
142.3
86.6
117.8 113.7
124.
132.5
116.3
83.6
86.4
80.9
139.5
86.6
119.0
126.1
111.1
79.3
78.6
79.9
138.9
85.5
114.
122.1
106.7
76.1
76.0
76
134.2
85.6
111.0 107.7 104
1.65 120.1 126.1 126.8 126
125.6 121.6 121.5 116.6 109.3 105.2 101 .3 95.1 92.2
130.3 128.7 126.9 127.7 124.6 123.0 122.9 118.8 116.9 115.2 111
2.79 125.9 129
136.8 138.9 138.5 139.7 140.1
138.8 136.7 129.0 128.4 119.9 118.4
1.38 127.0 126.8 128.8 129.7 131.1 131.6 130.5 129.4 125.5 120.5 120.4 111
109.5
1.52 144.6 145.8 144.1 147.3 145.3 147.1 148.8 147.5 146.9 136.9 135.7 127.7 126.5
112.4
119.7
104.3
80.2
86.4
74.3
132.9
85.3
101.5
i 08! 8
117.1
Nondurable manufactures
Textiles, apparel, and leather.
Textile mill products..........
Apparel products................
Leather and products.........
Paper and printing ............ .
Paper and products
Printing and publishing.
Chemicals, petroleum, and rubber. . . .
Chemicals and products..................
Petroleum products.........................
Rubber and plastics products.........
Foods and tobacco. . .
Foods.....................
Tobacco products.
6 .90 108.5 112.4 109.3 109.8 108.5 108.1 107.4 106.5 105.1
2.69 123.0 125.0 123.4 124.0 125.1 125.3 124.3 121.9 119.1
3.33 105.0 110.0 105
105.0 102.1 102.7 102.5 102.5 102.
77.6
83.0
79.5
83.9
81.6
75.7
73.4
74.2
101.9
96.3
112.8 102.9
100.1 98.0
70.6 74.7 69.7
92.4
96.0
96.5
65.9
89.5
93.0
89.2
64.0
7.92 121.0 122.5 121.2 121.3 122.3 122.4 121.0 122.7 120.8 115.7 112.3 109.2 105.5
3.18 133.9 140.2 135.4 135.1 136.7 136.1 132.2 135.3 133.9 124.3 116.1
4.74 112.3 110.7 111.7 111.9 112.7 113.4 113.4 114.4 111.9 110.0 109.
11.92
113.6 107.0
106.2 104.5 103.4
151.7 151.3 153.5 153.0 153.7 153.9 154.4 154.7 152.4 146.5 141.6 135.8 133
131.4
7.86 154.3 155.5 156.2 156.2 156.9 155.8 156.7 158.3 155.9 148.3 143.1 137.7 135.7 134.0
1.80 124.1 117.3 126.9 126.1 126.2 127.9 125.8 121.9 125.4 127.0 125.8 126.9 123.4 121 .2
2.26 164.6 164.2 165.5 163.7 164.5 167.2 169.0 168.6 161.8 155.7 148.9 136.1 135.6
124.3 123.7 123.
9.48 124.7 125.3 124.3 126.5 125.3 124.
123.5 124.4 123.0
124.
8.81 126.1 126.5 125.9 127.
127.1 126.6 126.3 125.7 124.8 125.4 125.7 125.9 124.5
.67 107.0 110.4 104.6 109.4 102.9 101.5 104.2 106.0 110.3 103.
96.2 104.7
122.5
123.8
Mining
M etal, stone , and earth minerals. ,
Metal mining............................
Stone and earth minerals........
Coal, oil, and ga s ............
Coal.............................
Oil and gas extraction.
1.26
117.1 119.7 117.5 117.9 112.4 113.5 109.9 115.4 121.3 120.7 117.9 117.9 115.5 111.1
5.11
107.3 110.2 109.8 109.2 109.7 109.4 106.7 107.7 107.8 101.2 101.1
.51 129.0 132.9 127.4 128.1 121.1 120.3 110.0 130.5 141.4 136. 134.7 132.7 129.9
.75 109.0 110.7 110.7 111.0 106.4 108.8 109.9 105.0 107.5 109.8 106.4 107.9 105.6
105.1
104.7 106.0
.69 104.8 114.7 110.3 112.4 118.3 115.6 99.4 112.1 110.3 67.6 85.3 111.5 113.0 114.9
4.42 107.7 109.5 109.7 108.8 108.4 108.4 107.9 107.1 107.4 106.4 103.6 103.9 103.4 104.7
Utilities
Electric.,
Gas.......
3.91 158.6 155.1 158.3 159.0 160.3 162.7 162.8 162.4 161.2 162.9 163.0
1.17 117.9
N o t e .— 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 separately. Figures for individual series and subtotals are published in the
monthly Business Indexes release.
A 50
BUSINESS ACTIVITY; CONSTRUCTION a APRIL 1975
SELECTED BUSINESS INDEXES
(1967= 100, except as noted)
Industrial production
Market
Period
Products
Total
Total
Ca
pacity
Nonag
utiliza Con
ricul
struc tural
tion
in mfg. tion
em
ploy
(1967
con
Manu output tracts ment—
factur = 100)
Total1
ing
Manu
facturing2
Prices4
In
dustry
Final
Inter
Con Equip mediate
Total sumer ment
goods
Mate
rials
Em
ploy
ment
Pay
rolls
Total
retail
sales3
Con
sumer
Whole
sale
com
modity
195
195
195
195
195
5
6
7
8
9
58.5
61.1
61.9
57.9
64.
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
196
196
196
196
196
0
1
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
196
196
196
196
196
5
6
7
8
9
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
103.2
106.9
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
197
197
197
197
197
0
1
2
3
4
106.6
106.8
115.2
125.6
124.
106.0
106.4
113.8
123.4
123.1
104.5
104.7
111.9
121.3
121.7
110.3 96.3 111.7
115.7 89.4 112.6
123.6 95.5 121.1
131.7 106.7 131.1
128.8 111.8 128.3
107.7
107.4
117.4
129.3
127.4
105.2
105.2
114.0
125.2
124.4
78.3
75.0
78.6
83.0
123.1
145.4
165.3
181.3
168.6
107.7
108.1
111.9
116.7
118.9
98.1
94.2
97.6
103.1
102.1
114.1
116.7
131.5
148.9
156.6
120
122
142
116.3
121.2
125.3
133.1
147.7
110.4
113.9
119.8
134.7
160.1
1974—Feb..
Mar.
Apr.,
May,
June,
July.
Aug.
Sept.
Oct..
Nov.
Dec.,
124.6
124.7
124.9
125.7
125
125.5
125.2
125.6
124
121.7
117.3
122.4
122.6
122.7
123.
124.0
124.0
123.5
123.6
122.9
121.4
118.7
120.6
121.0
120.8
122.4
122.6
122.8
122.1
122.6
122.3
120.9
118.2
128.3
128.5
128.5
129.7
130.2
130.0
129.
128.
128.2
126.3
123.4
129.1
128.2
129.4
129.2
128.9
127.8
128.6
127.6
125.3
123.0
120.5
128.3
128.8
128.7
129.1
128.8
128.0
128.5
129.3
128.1
122.1
114.8
124.5
124.6
124.8
125.7
125.6
125.2
125.2
125.5
124.6
120.9
116.1
187.0
580.5 181.0
167.0
80.1 188.0
166.0
177.0
79.4 170.0
187.0
148.0
75.7 154.0
176.0
118.5
118.6
118.8
119.0
119.1
119.2
119.4
119.7
119.8
119.1
118.0
103.2
102.9
103.0
103.0
103.2
103.0
102.6
102.5
101.7
99.4
96.3
152.5
153.1
150.4
156.2
157.9
159.5
161.5
162.0
162.1
157.0
152.6
165
168
169
172
170
177
180
176
175
170
171
141.5
143.1
143.9
145.5
146.9
148.0
149.9
151.7
153.0
154.3
155.4
149.5
151.4
152.7
155.0
155.7
161.7
167.4
167.2
170.2
171.9
171.5
1975—Jan..
Feb..
Mar.
113.7 115.6 115.1 120.6 107.4 117.5
110.7 113.2 112.8 118.0 105.3 114.5
109.6 112.2 112.2 118.7 103.3 112.3
110.5
106.5
104.9
112.3
109.0
107.8
135.0
68.3 135.0
117.3
116.4
115.9
93.6
90.9
90.0
148.9
142.9
142.5
176
179
178
156.1
157.2
171.8
171.3
170.4
2
3
4
109.9
110.1
110.1
112.2
112.0
113.0
111.4
113.8
114.0
113.2
110.7
1 Employees only: excludes personnel in the Armed Forces.
2 Production workers only. Revised back to 1968.
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 1974.
N ote. —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
1973
1974
1974
Feb.
Mar.
Apr.
May
June
July
1975
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Total construction contracts 1........
99,304 93,076 6,610 7,911 8,929 10,158 8,480 9,295 8,416 8,359 7,227 6,179 7,304 5,100 4,955
By type of ownership:
Public........................................
Private *....................................
26,563 32,209 2,212 2,481 2,336 3,082 2,968 3,242 3,311 3,273 2,720 2,391 2,496 2,254 2,031
72,741 60,867 4,398 5,430 6,593 7,076 5,512 6,053 5,105 5,689 4,508 3,788 4,809 2,846 2,924
By type of construction:
Residential building 1..............
Nonresidential building...........
Nonbuilding.............................
45,696 34,174 2,678 3,374 3,924 3,862 3,546 3,350 3,060 2,503 2,457 1,931 1,715 1,562 1,583
31,534 33,859 2,260 2,752 2,842 3,120 2,989 3,698 3,246 3,320 2,710 2,618 2,451 2,233 2,199
22,074 25,042 1,672 1,785 2,163 3,176 1,945 2,247 2,110 2,536 2,061 1,630 3,139 1,305 1,172
Private housing units authorized...
(In thousands, S.A., A.R.)
1,829
1,053 1,325 1,410 1,296 1,120 1,106 1,017
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.
900
823
782
730
822
r682
673
N ote.—D ollar 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.
APRIL 1975 □ CONSTRUCTION
A 51
VALUE OF NEW CONSTRUCTION ACTIVITY
(In m illio n s o f dollars)
Private
Public
Nonresidential
Period
Total
Resi
dential
Total
1965
1966
1967
1968
1969
.............................
.............................
.............................
.............................
.............................
Buildings
Mili
tary
Total
Total
Indus
trial
Com
mercial
Other
build
ings 1
Other
High
way
Conser
vation
Other 2
and
develop
ment
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
1970..............................
1971..............................
1972..............................
1973.............................
1974..............................
94,167 66,071
109,950 80,079
124,077 93,893
135,456 102,894
134,506 96,124
31,864
43,267
54,288
57,623
54,740
34,207
36,812
39,605
45,271
41,384
6,538
5,423
4,676
6,243
7,745
9,754
11,619
13,462
15,453
16,029
5,125
5,437
5,898
5,888
5,951
12,790
14,333
15,569
17,687
11,659
28,096
29,871
30,184
32,562
38,382
718
901
1,087
1,170
1 ,188
9,981
10,658
10,429
10,559
1,908
2,095
2,172
2,313
15,489
16,217
16,496
18,520
1974—Mar...................
Apr....................
May..................
June...................
July r.................
Aug. r ................
Sept.r ...............
Oct.r.................
Nov.r ...............
Dec. r .................
135,069
136,399
138,163
136,889
137,879
134,425
133,028
134,046
131,133
132,761
98,631
97,445
97,889
98,404
97,924
96,225
94,728
95,180
93,532
90,865
48,643
48,164
47,971
48,269
48,875
48,208
46,005
44,285
42,341
40,145
49,988
49,281
49,918
50,135
49,049
48,017
48,723
50,895
51,191
50,720
7,500
6,920
7,606
8,027
7,158
7,616
7,677
8,294
8,670
8,774
16,652
16,296
16,408
16,425
15,953
15,053
15,668
16,300
16,037
15,372
6,336
6,264
5,890
6,034
5,915
5,691
5,776
5,799
5,854
5,781
19,500
19,801
20,014
19,649
20,023
19,657
19,602
20,502
20,630
20,793
36,438
38,954
40,274
38,485
39,955
38,200
38,300
38,866
37,601
41,896
1,401 10,985
1,505 12,209
1,181
12,322
1,169 r \ 1,475
1,131 12,518
978 11,968
1,167 13,334
1,065 12,566
11,573
1975—Jan . r ................. 128,792
Feb.p................. 128,094
88,156
86,496
37,652
36,223
50,504
50,273
8,525
8,677
15,053
15,312
5,779
5,844
21,147
20,440
40,636
41,598
73,412
76,002
77,503
86,626
93,728
1 Includes religious, educational, hospital, institutional, and other buildings.
2 Sewer and water, formerly shown separately, now included in “Other.”
2,463 21,589
2,665 22,575
2,692 24,079
^3,310 r22,531
2,581 23,725
2,568 22,686
2,886 20,913
3,070 22,165
2,926
N o t e . — Census Bureau data; monthly series at seasonally adjusted
annual rates.
PRIVATE HOUSING ACTIVITY
(In thousands of units)
Starts
Completions
Under construction
(end of period)
New 1-family homes sold
and for sale 1
Units
Period
Total
1family
2-ormore
family
Total
1family
2-ormore
family
Total
1family
2-o rmore
family
Mobile
home
ship
ments
Sold
1965........................................
1966........................................
1967........................................
1968........................................
1969........................................
1,473
1,165
1,292
1,508
1,467
964
779
844
899
811
509
386
448
608
656
1,320
1,399
859
808
461
592
885
350
1970........................................
1971........................................
1972........................................
1973........................................
1974........................................
1,434
2,052
2,357
2,045
1,338
813
1,151
1,309
1,132
888
621
901
1,048
913
450
1,418
1,706
1,972
2,014
1,689
802
1,014
1,143
1,174
930
617
692
828
840
759
922
1,254
1,586
1,599
1,194
381
505
640
583
519
1974—Feb.r...........................
M arr ..................... ..
Apr r ...........................
M ayr...........................
Juner...........................
July r ...........................
Aug.r..........................
Septr...........................
Oct.r ...........................
Nov.r ..........................
Dec.r...........................
1,881
1,511
1,580
1,467
1,533
1,314
1,156
1,157
1,106
1,017
880
1,046
969
975
925
1,000
920
826
845
792
802
682
835
542
605
542
533
394
330
312
314
215
198
1,867
1,813
1,727
1,660
1,805
1,655
1,592
1,562
1,627
1,657
1,615
1,005
954
917
889
1,053
934
919
899
908
893
848
861
859
809
771
752
721
674
663
719
763
767
1,611
1,567
1,545
1,512
1,480
1,443
1,406
1,372
1,322
1,255
1,230
1975—Jan.' ...........................
Feb.p...........................
996
977
742
718
254
259
1,500
927
573
1,181
1 Merchant builders only.
N o t e . —All
series except prices, seasonally adjusted. Annual rates for
starts, completions, mobile home shipments, and sales. Census data except
Median prices
(in thousands
of dollars) of
units
For
sale
(end of
per
iod)
Sold
For
sale
535
217
217
240
318
413
575
461
487
490
448
228
196
190
218
228
20.0
21.4
22.7
24.7
25.6
21.3
22.8
23.6
24.6
27.0
541
749
947
1,016
676
401
497
576
567
371
485
656
718
620
500
227
294
416
456
408
23.4
25.2
27.6
32.5
35.9
26.2
25.9
28.3
32.9
36.2
601
597
600
594
581
578
570
565
553
541
546
1,010
970
945
918
899
865
836
807
769
714
684
449
475
435
451
441
380
370
316
248
218
216
515
564
556
569
524
509
466
495
433
440
387
458
452
450
444
436
430
425
414
409
403
400
34.9
36.0
35.7
35.7
35.1
36.8
35.7
36.2
37.2
37.2
37.5
33.5
34.0
34.3
34.7
35.0
35.3
35.5
35.7
35.9
36.0
36.2
526
655
215
394
402
37.6
36.5
for mobile homes, which are private, domestic shipments as reported by
the Mobile Home Manufacturers’ Assn. and seasonally adjusted by
Census Bureau. Data for units under construction seasonally adjusted by
Federal Reserve.
A 52
EMPLOYMENT □ APRIL 1975
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
1969..........................
1970...........................
1971...........................
1972...........................
1973...........................
1974...........................
137,841
140,182
142,596
145,775
148,263
150,827
53,602
54,280
55,666
56,785
57,222
57,587
84,240
85,903
86,929
88,991
91,040
93,240
80,734
82,715
84,113
86,542
88,714
91,011
77,902
78,627
79,120
81,702
84,409
85,936
74,296
75,165
75,732
78,230
80,957
82,443
3,606
3,462
3,387
3,472
3,452
3,492
2,832
4,088
4,993
4,840
4,304
5,076
3.5
4.9
5.9
5.6
4.9
5.6
1974—Mar................
Apr................
May...............
June...............
July................
Aug................
Sept................
Oct.................
Nov................
Dec................
150,066
150,283
150,507
150,710
150,922
151,135
151,367
151,593
151,812
152,020
58,183
58,547
58,349
55,952
55,426
56,456
57,706
57,489
57,991
58,482
92,632
92,567
92,982
93,069
93,503
93,419
93,922
94,058
93,921
94,015
90,381
90,324
90,753
90,857
91,283
91,199
91,705
91,844
91,708
91,803
85,779
85,787
86,062
86,088
86,403
86,274
86,402
86,304
85,689
85,202
82,126
82,272
82,565
82,755
82,970
82,823
82,913
82,864
82,314
81,863
3,653
3,515
3,497
3,333
3,433
3,451
3,489
3,440
3,375
3,339
4,602
4,537
4,691
4,769
4,880
4,925
5,303
5,540
6,019
6,601
5.1
5.0
5.2
5.2
5.3
5.4
5.8
6.0
6.6
7.2
1975—Jan.................
Feb.................
Mar................
152,230
152,445
152,646
58,888
59,333
59,053
94,284
93,709
94,027
92,091
91,511
91,829
84,562
84,027
83,849
81,179
80,701
80,584
3,383
3,326
3,265
7,529
7,484
7,980
8.2
8.2
8.7
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
Total
Manufac
turing
70,442
70,920
71,216
73,711
76,833
78,334
20,167
19,349
18,572
19,090
20,054
20,016
619
623
603
622
638
672
3,525
3,536
3,639
3,831
4,028
3,985
1974—Mar..............................................
Apr...............................................
May..............................................
June..............................................
July..............................................
Aug...............................................
Sept..............................................
Oct................................................
Nov...............................................
Dec...............................................
78,089
78,226
78,357
78,421
78,479
78,661
78,844
78,865
78,404
77,690
20,116
20,147
20,151
20,184
20,169
20,112
20,112
19,982
19,633
19,146
662
665
668
669
675
676
682
692
693
662
1975—Jan................................................
Feb...............................................
Mar..............................................
77,227
76,678
76,353
18,718
18,292
18,136
1974—Mar..............................................
Apr...............................................
May..............................................
June..............................................
July..............................................
Aug...............................................
Sept..............................................
Oct................................................
Nov...............................................
Dec...............................................
77,362
77,994
78,545
79,287
78,322
78,561
79,097
79,429
79,125
78,441
1975—Jan................................................
Feb...............................................
Mar...............................................
76,185
75,726
75,741
Period
1972.........................................................
1973.........................................................
Transporta
tion and
public
utilities
Trade
Finance
Service
Govern
ment
4,435
4,504
4,457
4,517
4,646
4,699
14,704
15,040
15,352
15,975
16,665
17,011
3,562
3,687
3,802
3,943
4,075
4,173
11,228
11,621
11,903
12,392
12,986
13,506
12,202
12,561
12,887
13,340
13,742
14,285
4,102
4,087
4,066
3,994
3,920
3,965
3,939
3,911
3,861
3,798
4,708
4,704
4,701
4,698
4,693
4,701
4,679
4,699
4,697
4,668
16,914
16,945
16,994
17,031
17,107
17,140
17,166
17,160
17,048
16,912
4,145
4,154
4,161
4,156
4,157
4,168
4,176
4,185
4,183
4,182
13,339
13,367
13,429
13,488
13,516
13,573
13,647
13,705
13,721
13,734
14,103
14,157
14,187
14,201
14,242
14,326
14,443
14,531
14,568
14,588
700
703
707
3,789
3,597
3,489
4,607
4,558
4,532
16,863
16,841
16,804
4,173
4,155
4,147
13,747
13,761
13,735
14,630
14,771
14,803
19,962
20,011
20,063
20,345
20,066
20,288
20,350
20,142
19,763
19,175
648
659
669
684
688
690
688
693
693
657
3,786
3,919
4,058
4,190
4,187
4,286
4,191
4,150
3,981
3,722
4,670
4,671
4,701
4,759
4,740
4,734
4,721
4,718
4,702
4,663
16,584
16,851
16,964
17,108
17,064
17,058
17,153
17,225
17,342
17,591
4,120
4,137
4,161
4,202
4,219
4,222
4,180
4,172
4,309
4,161
13,246
13,380
13,536
13,677
13,665
13,668
13,647
13,719
13,707
13,665
14,346
14,366
14,393
14,322
13,693
13,615
14,167
14,610
14,771
14,807
18,538
18,130
17,997
689
688
692
3,372
3,230
3,220
4,552
4,494
4,496
16,687
16,484
16,514
4,131
4,118
4,122
13,513
13,596
13,639
14,703
14,986
15,061
Mining
SEASONALLY ADJUSTED
NOT SEASONALLY ADJUSTED
N ote.—Bureau of Labor Statistics; data include all full- and parttime employees who worked during, or received pay for, the pay period
that includes the 12th of the month. Proprietors, self-employed persons,
domestic servants, unpaid family workers, and members of Armed
Forces are excluded.
Beginning with 1968, series has been adjusted to Mar. 1973 bench
mark.
APRIL 1975 □ PRICES
A 53
CONSUMER PRICES
(1967 = 100)
Housing
All
items
Food
1 9 2 9 .................................
1 9 3 3 .................................
1 9 4 1 .................................
1 9 4 5 .................................
1 9 6 0 .................................
1 9 6 5 .................................
51.3
38.8
44.1
53.9
88.7
94.5
48.3
30.6
38.4
50.7
88.0
94.4
53.7
59.1
90.2
94.9
76.0
54.1
57.2
58.8
91.7
96.9
1 9 6 6 .................................
1 9 6 7 .................................
1 9 6 8 .................................
1 9 6 9 .................................
97.2
100.0
104.2
109.8
99.1
1 00.0
103.6
108.9
97.2
100.0
104.2
110.8
1 9 7 0 .................................
1 9 7 1 .................................
1 9 7 2 .................................
1 9 7 3 .................................
1 9 7 4 .................................
116.3
121.3
125.3
133.1
147.7
114.9
118.4
123.5
141.4
161.7
1974— Feb................
141.5
14 3 .1
143.9
145.5
146.9
148.0
149.9
151.7
153.0
154.3
155.4
1975— Jan................
156.1
157.2
Period
Mar...............
Apr...............
M ay..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec...............
Feb.1.............
Health and recreation
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
98.2
100.0
102.4
105.7
96.3
100.0
105.7
116.0
97.0
100.0
1 0 3 .1
105.6
118.9
124.3
129.2
135.0
150.6
11 0 .1
115.2
119.2
r12 4 . 3
130.2
128.5
133.7
140.1
146.7
163.2
157.6
1 5 9. 1
158.6
159.7
160.3
160.5
162.8
165.0
166 .1
167.8
169.7
143.4
144.9
146.0
147.6
149.2
150.9
152.8
154.9
156.7
158.3
159.9
128.0
128.4
128.8
129.3
129.8
130.3
130.9
131.4
132.2
132.8
133.5
170.9
171.6
161 . 2
162.7
Total
Homeownership
Rent
134.0
13 5. 1
Fur Apparel Trans
nish
and
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
8 7 ‘. 8
9 4.2
99.6
100.0
100.9
102.8
97.0
100.0
1 04.4
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
9 7.2
100.0
104.6
109.1
11 0. 1
117.5
118.5
136.0
214.6
107.3
114.7
120.5
126.4
14 5. 8
113.4
11 8. 1
121.0
124.9
140.5
11 6. 1
119.8
122.3
1 2 6. 8
136.2
112.7
118.6
119.9
12 3 . 8
137.7
116.2
122.2
126 .1
130.2
140.3
120.6
128.4
132.5
137.7
150.5
113.2
116.8
119.8
125.2
137.3
113.4
119.3
122.8
125.9
13 3 . 8
116.0
120.9
125.5
129.0
137.2
15 5 . 8
157.2
158.2
159.4
161 . 2
163.2
165.4
167.9
170.1
171.7
174.0
202.0
201.5
206.5
211.0
214.2
218.5
220.9
222.7
225.5
229.2
228.8
13 7 . 3
140.0
141.9
143.9
144.5
146.2
148.5
150.2
151.5
154.0
156.7
130. 1
132.6
134.0
137.0
139.2
141.4
143.9
146.6
149.0
151.0
15 2 .3
130.4
132.2
133.6
135.0
135.7
135.3
138.1
139.9
141.1
142.4
141.9
12 9 . 3
132.0
133.7
136.3
138.8
140.6
141.3
142.2
142.9
143.4
143.5
134.5
135.4
136.3
137.7
139.4
141.0
142.6
144.0
145.2
146.3
147.5
143.4
144.8
145.6
147.2
149.4
151 . 4
153.7
155.2
156.3
157.5
159.0
130.8
131.8
133 .1
134.9
136.5
137.8
139.3
141 . 2
143.0
144.2
145.3
128.9
129.5
130.4
132.0
133.5
134.6
135.2
137.0
137.8
138.8
139.8
132.3
132.8
133.6
134.4
135.8
137.7
139.4
140.4
141.4
142.7
143.9
175.6
1 7 7. 3
228.9
229.5
160.2
162.7
153.2
154.7
139.4
140.2
143.2
143.5
148.9
150.2
161.0
163.0
146.5
147.8
141 . 0
141.8
144.8
145.9
N ote .— B ureau o f La b or Statistics index for city wage-earners and
clerical workers.
WHOLESALE PRICES: SUMMARY
(1967 =
100, except as noted)
Industrial commodities
Period
Pro
All
com Farm cessed
foods
modi prod
ucts
and
ties
feeds Total
Ma
Non- Trans
Tex Hides, Fuel, Chem Rub Lum Paper, Met chin
me- porta Mis
ery Furni
tiles, etc.
icals,
ber,
als,
ture,
ber,
tallic tion cella
etc.
etc.
and
etc.
etc.
etc.
etc.
etc.
etc.
min equip neous
equip
erals ment1
ment
9 4.9
96.6
97.2
98.7
89.5
95.5
95.3
96.4
99.5
99.8
90.8
94.3
96.1
95.5
101.8
99.0
103.1
95.9
95.3
95.9
98.1
96.2
92.4
96.4
92.0
93.9
99.0
96.9
97.2
97.5
93.0
95.9
1 9 6 6 ...................................... 9 9 . 8
1 9 6 7 ...................................... 1 0 0 . 0
1 9 6 8 ...................................... 1 0 2 . 5
1 9 6 9 ...................................... 1 0 6 . 5
105.9
100.0
102.5
10 9. 1
101.2
100.0
102.2
107.3
98.5
100.0
102.5
106.0
100. 1
100.0
103.7
106.0
103.4
100.0
103.2
108.9
97.8
100.0
9 8.9
100.9
99.4
100.0
99.8
99.9
97.8
100 0
103.4
105.3
100.2
100.0
113.3
125.3
98.8
100.0
101 .1
104.0
98.8
100.0
102.6
108.5
96.8
100 0
103.2
106.5
98.0
100.0
102.8
104.9
98.4
100.0
103.7
107.7
io o .s
97.7
100.0
102.2
105.2
1 9 7 0 ......................................
1 9 7 1 ......................................
1 9 7 2 ......................................
1 9 7 3 .....................................
1 9 7 4 .....................................
111.0
110.0
114.0
117.9
125.9
1 5 3. 8
107.2
108.6
113.6
123.8
139 .1
110.1
114.0
131.3
14 3. 1
145 .1
105.9
114.2
118.6
134.3
208.3
102.2
104.2
104.2
110.0
146.8
108.6
109.2
109.3
112.4
136.2
113.7
127.0
144.3
177.2
183.6
108.2
11 0. 1
113.4
122 .1
151.7
116.7
119.0
123.5
132.8
171.9
111.4
115.5
117.9
121.7
139.4
107.5
109.9
111.4
115.2
127.9
113.3
122.4
126.1
130.2
153.2
104.5
110.3
113.8
11 5 . 1
125.5
109.9
112.8
114.6
119.7
13 3. 1
1 9 6 0 ......................................
1 9 6 5 ......................................
110.4
113.9
119.1
134.7
160 .1
112.9
125.0
176.3
187.7
112.0
114.3
120.8
148 .1
1 70 . 9
1974— Mar................... 1 5 1 . 4
Apr................... 1 5 2 . 7
May................. 1 5 5 . 0
June................. 1 5 5 . 7
July................... 1 6 1 . 7
Aug................... 1 6 7 . 4
Sept.................. 1 6 7 . 2
Oct.................... 1 7 0 . 2
Nov.................. 1 7 1 . 9
Dec................... 17 1 . 5
197.0
186.2
180.8
168.6
18 0 . 8
189.2
182.7
187.5
1 87 . 8
183.7
163.0
159 .1
158.9
157.4
167.6
179.7
1 7 6. 8
183.5
189.7
188.2
142.4
146.6
150.5
153.6
15 7 . 8
161.6
1 6 2. 9
1 6 4. 8
1 6 5. 8
166.1
13 6. 1
137.5
13 9. 1
141.7
142 .1
142.3
1 42 .1
140.5
1 3 9. 8
138.4
143.4
145.4
14 6 . 3
146.0
146.6
146.2
148 .1
145.2
144.5
143.2
189.0
1 9 7. 9
204.3
210.5
221.7
226.0
225.0
228.5
227.4
229.0
127.3
13 2 . 3
137.0
142.8
148.4
158.5
161.7
168.5
17 2 .9
174.0
123.8
129.4
133.7
135.6
139.5
143.4
145.6
147.5
148.5
149.4
19 1 .3
2 00.2
198.0
192.2
188.6
183.7
180.4
169.4
1 6 5 .8
165.4
137.2
114.4
146.6
147.5
1 53 .3
162.9
164.2
166.0
16 6 . 9
167.2
154.7
161.2
168.7
174.0
180.3
185.6
18 7 .1
186.9
186.7
184.6
129.0
130.8
1 3 4 .1
137.2
140.3
144.3
146.8
150.0
152.7
154.0
121.3
122.9
124.5
12 6 .1
128.2
12 9 . 8
132.8
135.5
136.9
137.7
144.2
146.7
150.7
152.3
156.4
157.6
159.8
162.2
163.4
164.3
119.1
119.4
121.4
122.8
12 5. 1
126.7
127.7
134.2
13 5. 1
137.0
125.8
128.2
133.2
134.3
135.2
135.4
136.3
1 37 .1
140.7
142.4
1975— Jan.................... 17 1 . 8
Feb................... 1 7 1 . 3
M ar.1............... 1 7 0 . 4
179.7
174.6
171 .1
186.4
182.6
1 7 7 .3
167.5
168.4
168.9
137.5
136.5
13 4 . 3
142. 1
141.7
143.2
232.2
232.3
233.0
176.0
178.1
1 8 1 .8
149.6
150.0
149.7
164.7
169.3
169.6
1 6 9. 8
169.8
170.0
185.5
186.3
1 8 6. 1
156.6
157.7
158.8
13 8. 8
139.1
138.5
168.5
170.3
170.8
137.1
138.2
139.5
145.5
146.4
146.8
i Dec. 1968=100.
A 54
NATIONAL PRODUCT AND INCOME □ APRIL 1975
GROSS NATIONAL PRODUCT
(In billions of dollars)
Item
1929
1933
1941
1950
1970
1971
1972
1973
1974?
1973
IV
1974
I
II
III
IV*
Final purchases.................................................
Gross national product..................................... 103.1
101.4
55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.4 1,344.0 1,358.8 1,383.8 1,416.3 1,430.9
Personal consumption expenditures.................
Durable goods..............................................
Nondurable goods........................................
Services.........................................................
11.2
9 .2
45.8
3.5
22.3
20.1
Gross private domestic investment...................
16.2
1.4
17.9
14.5
10.6
3 .0
2 .4
13.4
9 .5
2.9
6.6
Structures..............................................
Producers’ durable equipment.............
Residential structures...............................
Nonfarm................................................
Change in business inventories...................
Nonfarm....................................................
37.7
30.3
57.2 120.1 278.0 972.6 1,048.6 1,149.5 1,279.6 1,883.2 1,315.1 1.341.9 1,370.3 1,407.6 1,413.1
.9
5.0
5.6
1.5
4.0
.6
3.8
.5
1.7 - 1 .6
1.8 - 1 .4
80.6 191.0 617.6 667.1
9.6 30.5 91.3 103.9
42.9 98.1 263.8 278.4
28.1 62.4 262.6 284.8
3.9
3.7
4.5
4.0
Net exports of goods and services...................
Exports.........................................................
Imports.........................................................
1.1
7.0
5.9
.4
2.4
2.0
1.3
5.9
4.6
Government purchases of goods and services..
Federal..........................................................
National defense......................................
Other.........................................................
State and local...................................... . . .
8.5
8.0
24.8
1.3
2 .0
16.9
1 .2
6.0
13.8
3.1
7.9
729.0
118.4
299.7
310.9
805.2
130.3
338.0
336.9
876.7
127.5
380.2
369.0
823.9
124.3
352.1
347.4
840.6
123.9
364.4
352.4
869.1
129.5
375.8
363.8
901.3
136.1
389.0
376.2
895.8
120.7
391.7
383.5
54.1 136.3 153.7 179.3 209.4 209.4 224.5 210.5 211.8 205.8 209.4
47.3 131.7 147.4 170.8 194.0 195.2 195.5 193.6 198.3 197.1 191.6
27.9 100.6 104.6 116.8 136.8 149.2 141.9 145.2 149.4 150.9 151.2
9.2
36.1 37.9 41.1 47.0 52.0 49.3 51.3 52.2 51.0 53.7
18.7 64.4 66.6 75.7 89.8 97.1 92.6 93.9 91.2 99.9 97.5
19.4
18.6
6.8
6.0
31.2
30.7
4.5
4.3
42.8
42.3
6.3
4.9
1.8
13.8
12.0
3.6
62.9
59.3
- .2
65.4
65.6
54.0
53.4
8.5
7.8
57.2
56.7
15.4
11.4
46.0
45.2
14.2
11.9
53.6
53.0
28.9
24.0
48.4
47.8
16.9
13.1
48.8
48.0
13.5
10.4
46.2
45.4
8.7
6.6
40.4
39.7
17.8
17.5
- 6 .0
2.1
3.9
9.3 11.3 - 1 .5 - 3 .1
1.9
72.4 100.4 140.2 113.6 131.2 138.5 143.6 147.5
78.4 96.4 138.1 104.3 119.9 140.0 146.7 145.7
37.9 219.5 234.2 255.7 276.4 309.2 286.4 296.3 304.4 312.3 323.8
18.4
96.2
97.6
104.9 106.6 116.9 108.4
111.5 114.3 117.2 124.5
14.1 74.6 71.2 74.8 74.4 78.7 75. 3 75.8 16.6 78.4 84.0
4.3 21.6 26.5 30.1 32.2 38.2 33.1 35.7 37.7 38.8 40^6
19.5 123.3 136.6 150.8 169.8 192.3 177.9 184.8 190.1 195! 1 199! 3
Gross national product in constant (1958)
dollars............................................................ 203.6 141.5 263.7 355.3 722.5 746.3 792.5 839.2 821.2 845.7 830.5 827.1 823.1 804.0
N o t e .—Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. For back data and explanation of series,
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
1970
1971
1972
1973
1974v
1973
IV
II
III
National income...................
86.8
40.3 104.2 241.1 800.5 857.7 946.5 1,065. 1,143
Compensation of employees.
51.1
29.5
64.8 154.6 603.9 643.1 707.1 786.
855.
814.
828.
848.3 868
Wages and salaries . . . .
50.4
29.0
62.1
750.
717.
565.
727.
573.
21.
132.
744.6 761 ,
Private.......................
Military.....................
Government civilian.
Supplements to wages and salaries ...............
Employer contributions for social in
surance ..................................................
Other labor income..................................
45.5
.3
4.6
23.9
.3
4.9
.7
542.0 573.6 626.8 691.
51.9 124.4 426.9 449.5 491.4 545.
1.9
5.0 19.6 19.4 20.5 20.
8.3
146.
17.4
2 .7
95.5 104.7 114.
61.9
69.5
80.3
126.
592.
21.
137.
94.4 105.1
1,106. 1,118. 1,130.2 1,155
21.
130.
97.7
IV?
1,167.6
877.7
769.2
588.3 602,
20.9 20.
135.4 138,
605.1
22.0
142.1
101.2 103.7 106
108.6
.1
.6
.1
.4
2.0
.7
4.0
3.8
29.7
32.2
33.1
36.4
38.6
41.7
50.
47.
52.
48.
53.2
50.5
54.
52.
54.6
54.0
15.1
9.0
6.2
5.9
3.3
2.6
17.5
11.1
6.4
37.5
24.0
13.5
66.9
50.0
16.9
69.2
52.0
17.2
75.9
54.9
21.0
103.
58.
44.
98.
59.
39.
89.9
60.7
29.1
92.
62.
29.
91.6
62.5
29.1
Rental income of persons.................................
. 5.4
2.0
3.5
9.4
23.9
25.2
25.9
26.
26.
26.3
26.6
26.8
Corporate profits and inventory valuation
adjustment.....................................................
10.5
-1.2
15.2
37.7
69.2
78.7
92.2 105.1 106.2 106.4 107.7 105.6 105.8 105.6
10.0
1.0
17.7
42.6
17.8
34.8
74.0
83.6
8.6
.4
24.9
5.
2.8
2.0
-1 .6
10.1
39.3
46.1
25.0
Inventory valuation adjustment..................
.5
-2.1
- 2 .5
- 5 .0
Net interest.......................................................
4.7
4.1
3.2
2.0
Proprietors’ income...............
Business and professional.
Farm ..................................
Profits before tax ...............
Profits tax liability.........
Profits after ta x ..............
Dividends...................
Undistributed profits.
1.4
.5
7.6
4.4
5.7
8.8
16.0
N o t e . — Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table above.
24.7
14.6
-4 .
36.5
37.5
21.1
- 4 .9
41.6
26.5
99.2 122.7 141.4 122.7 135.4 139.0 157.0 134.1
49
56.0 49.5 52.2 55.9 62.7 53.0
73.2 83.2 83.1 94.3 81.1
72.9 85.4
27.3 29.6 32.7 30.7 31.6 32.5 33.2 33.3
41.5
57.7
30.3
43.3
52.8
42.5
51.6
50.5
61.1
47.8
- 7 .0 -1 7 .6 -3 5 .2 -16.3 -2 7 .7 -3 3 .4 -5 1 .2 -2 8 .5
45.6
52.3
61.6
55.5
57.5
60.1
62.8
65.9
APRIL 1975 □ NATIONAL PRODUCT AND INCOME
A 55
RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING
(In billions of dollars)
Item
1929
1933
1941
1950
1970
1971
1972
1973
1974^
1973
1974
I
IV
Gross national product.....................................
103.1
Less: Capital consumption allowances..........
7.9
7.0
8.2
18.3
7.0
.6
.7
7.1
.7
.6
11.3
.5
.4
23.3
.8
1.5
.1
.2
Indirect business tax and nontax lia
bility....................................................
Business transfer payments...................
Statistical discrepancy...........................
Plus: Subsidies less current surplus of gov-
Equals: National income..................................
Less: Corporate profits and inventory valu
ation adjustment.................................
Contributions for social insurance.......
Excess of wage accruals over disburse
ments ...................................................
IV*
93.7 102.9 110.8 119.5 113.9 115.8 118.6 120.7 122.9
87.3
93.5 102.7 110.0 119.2 126.9 121.3 122.6 125.9 129.5 129.8
5.2
4.0
4.3
4.6
4.9
5.2
5.1
5.3
5.3
5.0
- 6 .4 - 2 .3 - 3 .8 - 5 . 0
.3
- . 1 - 2 .6 - 6 .3
3.0
2.6
1.7
1.1
2.3
.6
—. l - 2 .7
—2.9
—3.7
—2.4
- 2 .7
40.3 104.2 241.1 800.5 857.7 946.5 1,065.6 1,143.0 1,106.3 1,118.8 1,130.2 1,155.5 1,167.6
10.5 - 1 .2
.3
.2
15.2
2.8
37.7
6.9
69.2
57.7
78.7
63.8
92.2 105.1 106.2 106.4 107.7 105.6 105.8 105.6
73.0 91.2 101.5 93.9 99.1 100.8 103.0 103.2
.0
.6
.0
Plus: Government transfer payments............
.9
1.5
2.6
14.3
75.1
89.0
98.6
Business transfer payments...................
2.5
5.8
.6
1.6
2.0
.7
2.2
4.4
.5
7.2
8.8
.8
31.0
24.7
4.0
31.2
25.0
4.3
33.0
27.3
4.6
Net interest paid by government and
consumers...........................................
III
55.6 124.5 284.8 977.1 1,054.9 1,158.0 1,294.9 1,397.4 1,344.0 1,358.8 1,383.8 1,416.3 1,430.9
1
86.8
II
—.1
—.5
.0
.0
—.6
- 1 .5
.0
113.0 134.6 117. lj 123.1 130.6 138.7 145.8
38.3
29.6
4.9
42.3
32.7
5.2
40.4,
30.7
5.0
40.8
31.6
5.1
41.9
32.5
5.2
42.7
33.2
5.3
43.6
33.3
5.3
Equals: Personal income..................................
85.9
47.0
Less: Personal tax and nontax payments. . . .
2.6
1.5
Equals: Disposable personal incomc...............
83.3
45.5
92.7 206.9 691.7 746.4 802.5 903.7 979.7 939.4 950.6 966.5 993.1 1,008.8
Less: Personal outlays.....................................
79.1
77.2
1.5
46.5
45.8
.5
.3
.2
81.7 193.9 635.5 685.9 749.9 829.4 902.7 850.1| 866.2 894.9 927.6 922.3
80.6 191.0 617.6 667.1 729.0 805.2 876.7 823.9) 840.6 869.1 901.3 895.8
.9
2.4 16.8 17.7 19.8 22.9 25.0 24.0! 24.4 24.8 25.3 25.5
i
.2
.9
1.2
.5
1.0
1.0
2.2
1.3
1.0
.9
1.1
1.1
Equals: Personal saving...................................
4.2
- .9
Personal consumption expenditures..
Consumer interest payments.............
Personal transfer payments to for
eigners..............................................
96.0 227.6 808.3 864.0 944.9 1,055.0 1,150.5 1,099.3 1,112.5 1,134.6 1,168.2 1,186.9
3.3
11.0
20.7 116.6 117.6 142.4 151.3 170.8 159.9 161.9 168.2 175.1
13.1
56.2
60.5
52.6
74.4
77.0
89.3
84.4
71.5
178.1
65.5
86.5
Disposable personal income in constant (1958)
dollars............................................................ 150.6 112.2 190.3 249.6 534.8 555.4 580.5 619.6 602.8 622.9 610.3 603.5 602.9 594.8
N o t e .—Dept, of Commerce estimates. Quarterly data are seasonally
adjusted totals at annual rates. See also N o t e to table at top of opposite
page.
PERSONAL INCOME
(In billions of dollars)
Item
1973
1974
1974
Feb.
Mar.
Apr.
May
June
1975
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Total personal income.............. 1,055.0 1,150.5 1,113.4 1,117.1 1,125.2 1,135.2 1,143.5 1,159.5 1,167.2 1,178.0 1,185.0 1,184.5 1,191.0 1,191.1 1,194.0
Wage and salary disbursements.
Commodity-producing in
dustries ..........................
Manufacturing only ..........
Distributive industries. . ..
Service industries.................
Government..........................
691.7 751.2 728.3 732.1 737.1 745.3 753.2
759.7
761.6
767.7
773.0
767.8
766.6
765.7 763.7
251.9 270.9 264.6 265.3 267.4 270.0 272.6
273.3
276.5
278.3
279.5
272.3
269.3
266.4 260.7
196.6 211.3 204.9 205.5 207.8 210.1 212.5
165.1 178.9 172.8 173.9 175.3 177.8 179.1
128.2 142.6 137.0 138.2 139.1 141.1 142.6
146.6 158.8 153.8 154.6 155.3 156.3 158.9
214.0
180.8
143.5
162.1
215.5
180.7
144.9
159.5
217.8
183.1
146.4
159.9
219.4
183.8
146.9
162.8
214.2
183.9
147.4
164.2
209.7
183.8
148.3
165.2
206.4 202.5
183.2 183.8
149.8 151.7
166.2 167.6
Other labor income.................
46.0
51.4
48.9
49.4
49.9
50.5
51.1
51.7
52.3
52.9
53.5
54.0
54.5
54.9
55.3
Proprietors’ income.................
Business and professional...
F arm .....................................
96.1
57.6
38.5
93.0
61.2
31.8
98.5
59.4
39.1
96.0
59.9
36.1
92.8
60.2
32.6
89.9
60.8
29.1
86.9
61.2
25.7
90.0
61.9
28.1
93.1
62.5
30.6
93.2
62.5
30.7
91.7
62.5
29.2
91.6
62.5
29.1
91.5
62.5
29.0
88.7
62.7
26.0
85.6
62.6
23.0
Rental income...........................
26.1
26.5
26.4
26.4
25.5
26.7
26.7
26.6
26.6
26.6
26.7
26.8
26.9
27.0
27.0
Dividends..................................
29.6
32.7
31.6
31.9
32.1
32.5
33.0
33.1
33.2
33.4
33.5
33.6
32.7
33.9
33.9
Personal interest income..........
90.6 103.8
98.3
99.0 100.4 102.0 103.5
104.4
105.3
106.9
108.0
109.5
111.1
111.9 112.5
117.8 139.8 128.4 129.5 134.6 135.8 137.0
142.5
143.6
146.0
147.6
149.8
156.1
158.6 165.3
48.5
48.4
48.6
48.9
48.5
48.4
Transfer payments...................
Less: Personal contributions
for social insurance........
42.8
47.9
46.8
47.0
47.2
47.6
47.9
49.5
49.3
Nonagricultural income............ 1,008.0 1,109.0 1,064.9 1,071.6 1,083.1 1,096.6 1,106.8 1,121.7 1,126.8 1,137.4 1,145.7 1,145.2 1,151.4 1,154.3 1,160.0
Agricultural income.................. 47.1 41.5 48.5 45.5 42.1 38.6 36.8
37.1
40.4
39.3
40.6
39.3
39.5
36.8 33.9
N o t e .—Dept, of Commerce estimates. Monthly data are seasonally
adjusted totals at annual rates. See also N o t e to table at top of opposite
page.
A 56
FLOW OF FUNDS □ APRIL 1975
SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1974
Transaction category, or sector
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
HI
H2
Funds raised, 1by type and sector
1 Total funds raised by nonfinancial sectors.................
2 E xclu din g e q u itie s .................................................
69.9
69.6
67.9
66.9
82.4
80.0
95.9
95.9
3 U.S. Government.......................................................
4
Public debt securities..............................................
5
Budget agency issues..............................................
1.8
1.3
.5
3.6
2.3
1.3
13.0
8.9
4.1
6 All other nonfinancial sectors.....................................
7
Corporate equities..................................................
8
D e b t in s tr u m e n ts ..............................................
68.1
.3
67.9
64.3
1.0
63.3
38.8
7.3
5.9
25.6
15.4
3 .6
4.4
2 .2
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 n d s...........................
Mortgages............................................................
Home mortgages..............................................
Other residential..............................................
Commercial......................................................
Farm ................................................................
Other private credit................................................
Bank loans n.e.c..................................................
Consumer credit..................................................
Open-market paper............................................
Other...................................................................
22
23
24
25
26
27
28
29
30
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 .........................................................
31
32
33
C o rp o ra te e q u itie s ..............................................
34
35
36
37
38
39
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............................................
98.2 147.4 169.4 187.4 175.7 190.8 160.6
92.5 135.9 158.9 180.1 172.4 185.5 159.3
1
2
13.4 - 3 .6
10.3 - 1 .3
3.1 - 2 .4
12.8
12.9
-. 1
19.6
21.1
- 1 .5
3
4
5
69.4
2.4
67.0
82.5
*
82.6
95.5
3.9
91.6
85.4 121.9 152.1 177.7 162.7 184.5 141.0
5.8 11.5 10.5
7.2
5.4
3.3
1.2
79.7 110.4 141.6 170.4 159.4 179.2 139.7
6
7
8
38.9
5.6
11.0
22.3
45.7
7.8
15.9
22.0
50.6
9.9
13.0
27.7
57.6
11.2
20.6
25.7
11.7
3.1
5 .7
1.8
11.5
3.6
4 .7
2.3
50.6
9.5
14.0
27.1
29.0
14.1
9.6
- .3
5.6
24.4
10.7
6.4
1.0
6.2
68.1
67.9
2.4
7.7
28.3
29.5
64.3
63.3
1.8
6.3
22.7
32.5
3 .3
5 .7
20.4
21.3
9.5
4.5
2.1
5.1
15.1
3 .4
6.4
2 .2
91.8
88.0
15.7
4 .7
5 .3
1.9
12.8
5.8
5 .3
1.8
22.1
6 .4
6 .0
3.8
5.9
25.5
26.0
- .5
17.3
13.9
3.4
9.7
7.7
2.0
84.2
17.6
19.7
46.9
94.9
14.4
13.2
67.3
97.1
13.7
10.2
73.2
26.1
8.8
10.0
2 .0
26.3
39.6
10.3
14.8
2.6
43.3
8.4
17.0
4 .4
32.0
13.1
10.0
1.6
7.2
41.0
15.3
10.4
3.3
12.0
69.4
67.0
4.0
7.9
19.3
35.7
82.5
82.6
2.7
9.8
30.0
40.1
95.5
91.6
3.2
10.7
31.7
46.0
3.1
5.4
24.0
3 .6
5 .0
27.2
2.8
5.6
31.7
3 .2
7.4
35.5
.3
.3
*
1.0
- .3
1.3
2.4
.1
2.4
*
.2
- .2
3.9
.5
3.4
5.8
.1
5.7
11.5
*
11.4
10.5
- .4
10.9
2.7
29.4
20.4
- 1 .0
1.5
33.8
25.3
- .4
2.8
4.0
38.1 39.9
29.6 31.5
1.2 - 1 .1
3.7
49.4
38.9
.4
2.7
48.0
39.5
2.8
4.6
59.6
46.8
3.2
4.3
7.5
70.5 85.1
55.3 67.2
- . 3 - 1 .7
70.9
2.8
68.3
4.0
81.3
11.8
97.1 91.4
14.5 - 4 . 0
46.7
9.3 21.8
11.2 19.2
- . 9 - 1 .6
7.3
6.6
73.4
38.6
22.9
1.8
10.0
13.0
13.1
-. 1
6.3
5.1
1.2
92.9 100.9
17.0 17.8
20.9 20.2
55.0 62.9
31.3
7.5
11.3
4.8
66.5
29.9
9.6
14.9
12.1
35.8
7.3
15.7
4.1
78.2
42.1
12.7
15.4
8.1
84.9
16.1
21.7
47.2
9
10
11
12
26.9 13
7.7 14
7.0 15
5.5 16
54.8 17
17.7 18
6.6 19
14.4 20
16.0 21
85.4 121.9 152.1 177.7 162.7 184.5 141.0 22
79.7 110.4 141.6 170.4 159.4 179.2 139.7 23
2.7
4.6
4.7
7.7 15.7 20.1
11.3 24
11.3 17.8 14.2 12.3 15.8 16.0 15.7 25
23.4 39.8 63.1 72.8 42.5 47.5 37.6 26
42.3 48.2 59.6 77.6 85.4 95.6 75.1 27
7.3
3.2
4.1
4 .9
7.4
8.6
7.5 28
7.2
6 .7
5.3
6 .3 29
8 .7
10.4
9.3
71.3 81.2 61.4 30
33.8 35.4 44.4 59.7
5.4
- .2
5.6
1.2
- .2
1.4
31
32
33
15.5 19.9
88.9 101.2
74.7 86.7
- 4 .8 - 2 .3
11.2
76.5
62.8
- 7 .2
34
35
36
37
95.5 144.2 169.7 189.0 180.5 193.1 167.8
8.6 26.8
10.0 22.3 17.6 11.4 17.7
38
39
7.2
- .2
7.4
3.3
- .2
3.5
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 tl a y s 1...................................... 173.1 190.6 188.1 207.6 226.7 224.2 253.5 293.0 334.7 330.7 331.6 329.7
2
Capital consumption 2........................................... 110.3 118.5 128.4 140.4 154.3 166.0 178.9 194.3 211.0 220.4 218.2 222.6
3
Net physical investment......................................... 62.8 72.2 59.7 67.2 72.4 58.2 74.6 98.7 123.7 110.3 113.5 107.1
1
2
3
57.8
5.1
56.5
15.7
57.5 69.9
2.2 - 2 .7
83.6
50.5
33.1
96.4
54.2
42.3
93.4
58.5
35.0
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.........................................
29.5
*
3.7
32.5
1.3
8.5
62.3
35.2
27.1
76.5
38.2
38.3
71.4
41.5
29.9
87.2 102.5 121.5 125.8 126.0 125.6
57.7 63.0 67.5 72.5 70.8 74.2
29.5 39.4 54.0 53.3 55.2 51.4
12
13
14
15
16
17
Net debt funds raised............................................
Corporate equity issues..........................................
Excess net investment 3..........................................
Households
18
T o ta l c a p ita l o u tl a y s ........................................
Capital consumption..............................................
19
20
Net physical investment.........................................
20.4
*
6.7
24.0
1.3
13.0
27.2 31.7 35.5 33.8 35.4 44.4 59.7 71.3 81.2 61.4
1.4
- .2
7.4
3.5
5.6
2.4
5.7 11.4 10.9
3.4
.4 - 1 .6 - 5 .0 - 9 .1 -1 7 .3 -1 5 .8 -1 3 .1 - 2 1 .4 - 3 1 .6 -1 1 .3
15
16
17
89.6
59.9
29.7
94.2
64.3
29.9
94.6 109.7 117.8 116.2 136.4 158.8 174.1 166.6 164.9 168.3
69.9 77.2 84.8 91.4 98.6 106.1 115.7 117.3 117.3 117.3
24.7 32.5 33.0 24.7 37.8 52.7 58.4 49.3 47.6 51.0
18
19
20
21
22
28.3
1.4
22.7
7.2
19.3
5.4
37.6
13.3
21
22
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 funds raised.....................................................
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 o t e .—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.
81.1 71.4 99.4 133.6 157.9 131.4 148.7 114.1
- 8 .7 -1 3 .2 -2 4 .8 -3 4 .9 -3 4 .2 -2 1 .1 -3 5 .2 - 7 .1
4
5
97.9 108.9 108.0 117.1 134.3 160.5 164.1 166.8 161.4
63.2 69.5 74.6 80.3 88.2 95.2 103.1 100.9 105.3
34.7 39.4 33.5 36.8 46.0 65.3 61.0 65.9 56.1
6
7
8
35.7 40.1 46.0 42.3 48.2 59.6 77.6 85.4 95.6 75.1
1.4
7.4
2.4
- .2
5.6
3.4
3.5
5.7 11.4 10.9
- 3 .2 - 5 .2 -1 0 .0 -1 4 .5 -2 2 .8 -2 4 .5 -1 9 .8 -2 7 .9 -3 5 .4 -2 0 .4
9
10
11
75.0
45.1
29.9
30.0
2.5
83.7
49.8
33.9
31.7
1.3
84.0
53.6
30.4
23.4 39.8 63.1 72.8
1.4 - 2 .1 -1 0 .4 - 1 4 .4
42.5
6.8
47.5
.2
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-57, line 11. Corporate equity 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 1975 □ FLOW OF FUNDS
A 57
DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS
(Seasonally adjusted annual rates; in billions of dollars)
1974
Transaction category, or sector
1 Total funds advanced in crcdit 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......................................
Monetary authorities..............................................
9
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............................................
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
HI
H2
69.6
66.9
80.0
95.9
88.0
92.5 135.9 158.9 180.1 172.4 185.5 159.3
1
8.9
3.7
.4
.7
4.1
11.9
3.4
2.8
.9
4.8
11.3
6.8
2.1
- 2 .5
4.9
12.2
3.4
2.8
.9
5.1
15.7
.7
4.6
4.0
6.3
28.1 41.7
15.9 33.8
5.7
5.7
1.3 - 2 .7
5.2
4.9
2.8
4.9
2.2
5.1
3.8
3.5
.1 - 1 . 6
2.1
4.8
4.6
- .1
4.8
2.0
- .6
4.9
3.2
3.7
.3
3.5
2.9
8.9
4.2
- .3
8.8
2.8
10.0
5.0
10.3
8.2
62.8
*
7.3
6.0
18.6
31.6
.7
59.8 68.1
5.4
5.7
7.8
5.6
10.3 16.0
12.0 13.0
27.4 23.1
.9 - 2 .5
87.2
13.3
9.5
13.8
15.5
35.9
.9
81.1
4.8
9.9
12.5
15.7
42.2
4.0
62.9
45.4
63.5
75.3
55.3
62.9
45.4
63.5
75.3
55.3
2.6
18.3
8.4
5.2
*
4.6
33.2
11.0
7.6
7.2
7.5
49.0
8.8
13.9
6.7
19.7
39.7
6.9
11.7
6.8
14.3
58.3
10.8
16.1
6.5
25.0
2
3
4
5
6
2.6
7.0
.3
8.4
6.2
3.0
20.3
9.2
.7
19.6
5.9
24.0
6.2
12.9
21.6
2.4
20.3
6.1
10.9
16.8
9.4
27.7
6.2
15.0
26.5
7
8
9
10
11
72.6 98.1 146.7 166.5 145.0 162.5 127.6
5.2 - 4 . 4
15.2 18.4 25.1
16.3 34.0
11.2 17.6 14.4 13.7 17.0 17.8 16.1
20.0 19.5 13.2 10.1 19.8 18.9 20.6
12.8 29.1 44.6 44.1 25.0 31.4 18.6
24.6 33.7 59.5 87.4 64.9 85.0 44.8
*
7.2
6.7
6.8
1.3 - 2 . 7
6.5
12
13
14
15
16
17
18
129.2 154.8 103.7
19
20
21
22
23
3.2
3.2
8.9
26.4
3.8
P riv a te fin a n c ia l in te r m e d ia tio n
19 Credit market funds advanced by private financial
institutions............................................................
20
Commercial banking..............................................
Savings institutions................................................
21
22
Insurance and pension funds.................................
23
Other finance..........................................................
24 Sources o f funds ..........................................................
25
Private domestic deposits.......................................
26
Credit market borrowing.......................................
27
28
29
30
31
Other sources..........................................................
Foreign funds......................................................
Treasury balances...............................................
Insurance and pension reserves.........................
Other, n et............................................................
P r iv a te d o m e s tic n o n fin a n cia l in v e sto rs
28.7
14.3
13.6
6.2
38.4
7.9
16.6
.8
- 1 .0
11.4
5.4
17.5
7.9
15.5
4.5
22.5
3.2
19.8
3.7
- .5
13.6
3.0
35.9
15.0
12.9
- .3
38.7
15.6
14.0
7.0
18.2
14.5
12.7
9.9
74.9 110.7 153.4 158.8
87.8
35.2
28.1
3.8
35.9
20.1
40.0
7.7
74.9 110.7 153.4 158.8 129.2 154.8
103.7
49.1
9.9
24
25
26
35.5 42.4 40.8 37.0 44.6
5.2
6.5 11.9 10.5 13.3
.7 - 1 .0 - 5 .3 - 2 .3 - 8 .3
13.1 16.7 29.0 23.0 35.1
5.8
5.1
16.5 20.2
4.5
27
28
29
30
31
39.3 32.4 30.9 33.8
18.8 17.9 14.5 21.2
8.2 16.8
4.4 12.5
1.1 - 3 . 0 - 1 . 0 - 5 .1
7.3 - 3 .1
2.1
11.3
2.9
1.9
3.9
3.8
32
33
34
35
36
37
35.1
16.9
17.3
5.7
63.2
- .3
50.6
41.4
13.3
5.3
90.3
9.3
50.0
- .4
45.9
8.5
13.9
2.3
.2
12.0
- .6
21.0
2.6
- .2
11.4
7.2
34.0 12.0 11.0
9.3 - 8 .5 - 3 .2
*
2.9
2.2
10.8 13.1
9.1
13.8
4.4
2.9
44.5
17.0
8.7
6.6
10.2
2.0
18.8
97.5
20.3
84.9
31.6
61.8
27.6
34.1
5.7
71.9
16.6
94.6
23.3
7.9
2.9
2.6
1.0
1.5
-.1
4.2
17.6
8.4 - 1 .4
2.6 - 2 .5
2.0
4.6
2.3
1.9
2.3
1.7
20.4
8.1
- .2
4.7
5.8
2.1
38 Deposits and currency................................................
Time and savings accounts....................................
39
40
Large negotiable CD’s .......................................
41
Other at commercial banks...............................
42
40.5
32.7
3.6
16.0
13.2
24.4
20.3
- .2
13.3
7.3
52.1
39.3
4.3
18.3
16.7
48.3
5.4
33.9 - 2 .3
3.5 - 1 3 .7
3.4
17.5
12.9
8.0
66.6
56.1
15.0
24.2
16.9
93.7 101.9
81.0 85.2
8.7
7.7
32.9 30.6
40.4 45.9
88.8
76.3
18.5
29.5
28.2
Demand deposits................................................
Currency..............................................................
7.8
5.6
2.1
4.1
2.1
2.0
12.8
10.6
2.1
14.5
12.1
2.4
7.7
4.8
2.8
10.5
7.1
3.5
12.7
9.3
3.4
12.6
8.6
3.9
14.3
5.8
8.6
.5
- 2 .9
3.4
43
44
45
46 Total of credit market instr., deposits, and currency.
48.4
42.0
56.3
68.7
49.9
64.1
90.5 115.7 128.1 110.2 134.1
86.3
46
12.8
100.1
.8
17.9
75.9
2.1
14.1
93.2
4.3
12.7
86.4
2.9
17.8 30.4 30.7 11.5
68.3 103.1 112.8 104.5
9 .,
..8 23.2 13.6
47
48
49
Public support rate (in per cent)...........................
Private financial intermediation (in per cent)........
Total foreign funds................................................
13.7
1.6
2.1
5.2
4.0
.8
86.6
35.1
22.1
15.0
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.......................................................................
43
44
45
- 2 .6 - 3 .2
- 9 .0 -1 4 .0
- 1 .2
.6
9.3
10.7
- 4 .4
- .6
1.4
1.5
70.5
49.3
17.7
15.8
16.7
12.3
4.4
18.4
95.4
7.2
77.9 103.2
70.5 88.8
24.2 30.3
24.6 32.0
21.7 26.6
7.4
1.4
6.0
28.4
89.1
24.9
21.4
95.3
21.4
52.6 38
52.1 39
18.0 40
17.1 41
16.9 42
36.6 47
81.3 48
28.3 49
Corporate equities not included above
1
2
Mutual fund shares................................................
Other equities.........................................................
3
4 Acquisitions by financial institutions.......................
5
4.8
5.5
3.5
3.2
3.7
3.0
2.5
.3
1.1
6.0
9.1
6.1
- 2 .6 - 1 .2 - 3 .6
Notes
Line
1.
2.
6.
11.
12.
17.
25.
26.
28.
Line 2 of p. A-56.
Sum of lines 3-6 or 7-10.
Includes farm and commercial mortgages.
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.
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.
Includes farm and commercial mortgages.
Lines 39 + 44.
Excludes equity issues and investment company shares. Includes
line 18.
Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign af
filiates.
8.0
6.4 10.0 10.4 14.8 12.9
5.8
4.8
2.6
1.1 - . 7 - 1 . 6
9.6
.6
5.2
7.7 13.6 13.6
10.8 12.2 11.4 19.3 16.0 13.4
- 4 .4 - 2 .2 - 1 .0 - 4 .5 - 3 .1 - 5 .4
6.1
5.9
1.6 - . 8
6.7
4.5
8.9
5.0
1.0 - 3 . 0
6.2
3.9
2.3
1.2
5.0
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 58
U.S. BALANCE OF PAYMENTS □ APRIL 1975
1.
U.S. BALANCE OF PAYMENTS SUMMARY
(In millions of dollars. Quarterly figures are seasonally adjusted unless shown in italics.)
Credits (+ ), debits ( —)
Line
1972
1973
1974^
1973
IV
1
2
3
Merchandise trade balance i .....................................................
4
5
6
7
8
9
Other U.S. investments abroad..........................................
1974
II r
lr
I yi>
III
471 -5,881
1,210
-6 ,9 8 6
-175 -1 ,6 7 4 -2 ,4 7 4 -1 ,5 5 8
48,768 IQ,211 97,081 20,216 22,212 23,921 24,731 26,217
-55,754 -69,806 -102,962 -19,006 -22,387 -25,595 -27,205 -27,775
-3 ,6 0 4
-3 ,0 5 5
-2 ,2 6 6
-2 ,7 1 0
-2 ,0 9 9
-2 ,4 3 5
-123
-6 3 0
-5 0 0
-531
-473
-566
-458
-6 1 2
4,526
6,925
3,494
-5 ,8 9 3
5,291
9,679
1,378
3,104
1,870
2,282
2,688
9,415 18,240
4,650
4,546
4,824
4,569
7,703
1,292
1,499
1,836
2,197
-8 ,6 9 3 -16,263 -2 ,6 0 2 -3 ,0 4 5 -4 ,5 1 2 -4 ,7 3 9
2,422
4,220
2,170
-3 ,9 6 8
-668
-726
10
3,110
3,540
3,926
901
918
992
984
It
-6 ,0 0 9
4,327
3,191
2,736
2,816
-2 0 6
-247
3,800
3,948
-3 ,0 3 0
2,317
-463
Remittances, pensions, and other transfers................................
-1 ,6 2 4
-1 ,9 4 3
-1 ,7 7 5
-1 1 1
-3 9 0
-4 6 1
-4 5 6
13
Balance on goods, services, and remittances.....................................
-7 ,6 3 4
2,383
1,416
2,019
2,426
-673
-7 0 3
14
15
16
17
18
19
20
21
22
23
24
27
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
U.S. Government grants (excluding military)...........................
-2,173
Balance on current account.................................................................
-9 ,8 0 7
U.S. Government capital flows excluding nonscheduled
U.S. Government nonliquid liabilities to other than foreign
official reserve agencies...........................................................
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.................
-1 ,9 3 3
-5,441
450 -4 ,0 2 5
Allocations of Special Drawing Rights (SDR’s)......................
Errors and omissions, n et..........................................................
Not seasonally adjusted ...............................................................
Liquid private capital flows, net................................................
Liquid claims.......................................................................
Reported by U.S. banks..............................................
Reported by U.S. nonbanking concerns...................
Liquid liabilities—...............................................................
Foreign commercial banks.........................................
International and regional organizations...................
Other foreigners..........................................................
G old.....................................................................................
SDR’s ...................................................................................
Convertible currencies........................................................
Memoranda:
Transfers under military grant programs (excluded from
lines 2, 4, and 14)...................................................................
Reinvested earnings of foreign incorporated affiliates of
U.S. firms (excluded from lines 7 and 20).............................
Reinvested earnings of U.S. incorporated affiliates of foreign
firms (excluded from lines 9 and 21).....................................
-13,856
-2 ,3 0 3
-741
999
1,005
41,297
*
-1 ,9 9 0
311
- 4 ,2 3 9
1,199
-186
*
-1 ,0 1 4
*
53
273
189
119
504 -1 ,0 3 9 -2 ,4 0 2 -4 ,6 6 1
-6 2 7 -1 ,5 2 7 -2 ,0 4 7 -2 ,6 0 0
1,281
1,677
-8 9
-561
-6 4 6
-313
-306
-6 8 6
687
419
168
-7 5
-2 1
-902
68
-331
-1 7 0
-393
-1 9 6
-408
1,719 -2 ,5 6 3
2,120
—2,539
-3 ,8 7 4
—6,441
-5 ,8 6 6
—3,719
-1 ,2 5 3 -3 ,9 9 4 -5 ,2 9 6 -1 ,4 2 7 -2 ,2 3 8
-1 ,1 1 9 -2 ,8 1 7 -5,311 -1 ,6 5 3 -2 ,4 4 2
-6 6 4 -1 ,5 9 1
-695
-2 0 7
40
530
414
710
433
164
5,197
1,125
1,305
1,463
838
1,592
-8 6 9
-9 7 0
-6 ,3 9 6
-4 ,4 6 3
-6 ,5 1 2
—89
-5 ,3 0 4
-8 ,0 7 0
—144
—6, 784
3,530
2,016
1,874
-493 -2 ,7 3 2 -1 ,1 9 7
-4 7 2 -2 ,3 6 8 -1,261
-2 1
-364
64
4,023
4,748
3,071
3,227
4,663
2,161
384
-530
297
412
615
613
2,661
2,982
1,046 -4 ,5 2 2
—5, 773
—5 637
4,143
2,235
133 -1 ,6 6 8
-431 -1 ,3 8 5
564
-283
4,010
3,903
2,896
2,935
221
163
893
805
-320
1,495
—4,105
—1 609
-4 ,2 7 7
—3 851
9,734
4,452
8,253
-2 ,1 4 5
-557
4,255
1,263
399
1,118
596
-3 5 4
-277
182
61
630
-475
655
209 -1 ,4 3 4
-1 4 7
-1 5
-2
-2 1 0
443
-1
-358 -1 ,0 0 3
9
—172
3
233
-3 3 -1 ,2 6 5
-1 5
_ j
-209
—29
—85
-244
—123
_152
-728
215
137
_oo
—
zu
-84
487
393
542
352
504
-8 9
-1 4 4
-6 ,7 8 4
-5 ,7 7 3
-5 ,6 3 7
2,982
1,495
- 4 ,1 0 5
- 1 ,6 0 9
- 3 ,8 5 1
189
32
547
-703
35
153
4,189
2,772
4,521
8,124
548
945
54
55
Official reserve transactions, N.S.A .................................... -1 1 ,0 6 4
-3 1 0
4-135
-7 ,6 0 6 -18,338
3,502
2,302 10,268
-1 ,2 4 7 -1 ,9 4 4 -5 ,4 6 4
-7 4 2 -1 ,1 0 3 -5 ,4 4 5
-841
-505
-1 9
4,749
4,246 15,732
3,716
2,982 12,655
104
377
151
929
887
2,926
Balances excluding allocations of SDR’s:
Net liquidity, not seasonally adjusted.................................. -1 4 ,5 6 6
For notes see opposite page.
-673
-1 ,4 7 5
634
204
-7,5 9 8 -1,451
-6,801 -1 ,3 7 4
2,308
712
-525
-1,951
1,199
670
-1 ,1 8 6
-5 0 4
-1 ,1 6 7
-4 3 0
Official reserve transactions balance, financed by changes in—....... -10,354
Not seasonally adjusted ...............................................................
Liquid liabilities to foreign official agencies.............................
Other readily marketable liabilities to foreign official agen
cies 6........................................................................................
Nonliquid liabilities to foreign official reserve agencies re
ported by U.S. Govt...............................................................
-1 1 2
-2 ,1 0 8
1,111
238
-9 8
62
-3 ,5 1 7 -4 ,8 7 2
383
2,537
-6 5 4
-807
4,507
4,051
-1 ,1 5 8
-6 4 7
341
-2 0 0
-4 ,2 7 6 -12,955
-3 ,9 4 0 -12,223
-1 ,2 4 0 -2 ,4 5 3
904
1,721
363
1,848
-1 ,4 3 5
408 -1 ,0 6 6
*
1
-1,541
-1 ,4 5 7
-305
221
710
-1 ,7 9 0
Nonliquid short-term private capital flows, net.......................
Claims reported by U.S. banks..........................................
Claims reported by U.S. nonbanking concerns................
- 3 ,5 0 2
-4 4 7 4-2,561
-1 ,7 0 5 -2 ,9 3 8
137
289
-1 ,0 2 6 -10,580
-5 1 4
1,572
2,653
Balance on current account and long-term capital 5......................... -11,235
Not seasonally adjusted ...............................................................
3,584
826
-4 5
12
3,077
1,032
1,790
-7 ,6 0 6 -1 8 ,3 3 8
-5 ,3 0 4
-8 ,0 7 0
3,295
APRIL 1975 □ FOREIGN TRADE; U.S. RESERVE ASSETS
A 59
2. MERCHANDISE EXPORTS AND IMPORTS
(Seasonally adjusted; in millions of dollars)
Imports 2
19743
197 2
1973
1974
1975
1972
1973
M onth:
Jan...
Feb...
M ar...
A pr...
M a y ..
Ju n e ..
July...
A ug...
Sept...
Oct.. .
Nov...
D ec...
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
5,070
5,311
5,494
5,561
5,728
5,865
6,042
6,420
6,585
6,879
6,949
7,150
7,549
7,625
8,108
7,652
8,317
8,308
8,380
8,396
8,673
8,974
8,862
9.412
9.412
4,436
4,473
4,515
4,417
4,486
4,468
4,565
4,726
4,612
4,738
5,148
5,002
5,244
5,483
5,414
5,360
5,703
5,775
5,829
6,011
5,644
5,996
6,684
6,291
6,497
7,317
7,742
8,025
8,265
8,573
8,918
9,262
8,698
8,769
8,965
9,250
Quarter:
I
I I
III ....
IV .. . .
11,767
11,673
12,447
13,347
15,337
16,783
18,327
20,413
22,324
24,077
25,084
26,509
13,403
13,370
13,903
14,888
16,140
16,838
17,483
18,972
Year4. ..
49,208
70,823
97,907
55,555
69,476
1 Exports of domestic and foreign merchandise (f.a.s. value basis);
excludes Department of Defense shipments under military grant-aid
programs.
2 General imports, which includes imports for immediate consumption
plus entries into bonded warehouses.
3 Beginning with 1974 data, imports are reported on an f.a.s. trans
actions value basis; prior data are reported on a Customs import value
Trade balance
1975
1972
1973
19743
-361
-649
-647
-596
-604
-497
-491
-530
-436
-421
-675
-444
-289
-413
-103
+ 133
-142
-4 7
+ 37
+ 32
+776
+589
+ 195
+658
+653
+232
-116
+ 83
-6 1 0
-257
-611
-882
-302
-9 6
+9
-388
21,555
24,863
26,878
26,984
-1 ,6 5 7
-1 ,697
-1 ,4 5 6
-1 ,5 4 0
-804
-5 6
+ 845
+ 1,441
+769
-786
-1 ,794
-475
100,972
-6 ,3 4 7
+ 1,348
-3,0 6 5
9,659
9,622
1975
-247
-210
basis. For calender year 1974, the f.a.s. import transactions value was
$100.2 billion, about 0.7 per cent less than the corresponding Customs
import value of $101.0 billion.
4 Sum of unadjusted figures.
N o t e .—Bureau of the Census data. Details may not add to totals be
cause of rounding.
3. U.S. RESERVE ASSETS
(In millions of dollars)
Gold stock1
Total 2
T reasury
Con
vertible
foreign
curren
cies
18,753
17,220
16,843
16,672
16,947
16,057
15,596
15,471
16,889
15,978
15,513
15,388
116
99
212
432
1,690
1,064
1,035
769
196 5 ...
15,450
196 6 ...
14,882
19 6 7 ...
14,830
1968...
15,710
196 9 ... 5 16,964
13,806
13,235
12,065
10,892
11,859
13,733
13,159
11,982
10,367
10,367
781
1,321
2,345
3,528
52,781
863
326
420
1,290
2,324
1 9 7 0 ...
14,487
19 7 1 ... 612,167
19727. . 13,151
19738 . . 14,378
1974.. . 15,883
11,072
10,206
10,487
11,652
11,652
10,732
10,132
10,410
11,567
11,652
629
6276
241
8
5
1,935
585
465
552
1,852
End of
year
Total
196 1 ...
1 9 6 2 ...
19 6 3 ...
1 9 6 4 ...
Reserve
position
in
IMF
851
1,100
1,958
2,166
2,374
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 5.
2 Includes gold in Exchange Stabilization Fund.
3 Includes allocations by the IM F 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 SDR’s.
4 For holdings of F.R. Banks only, see p. A-9.
5 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.
6 Includes $28 million increase in dollar value of foreign currencies
revalued to reflect market exchange rates as of Dec. 31, 1971.
7 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,
NOTES TO TABLE 1 ON OPPOSITE PAGE:
1 Adjusted to balance of payments basis; excludes exports under U.S.
military agency sales contracts, and imports of U.S. military agencies.
2 Fees and royalities from U.S. direct investments abroad or from
foreign direct investments in the United States are excluded from invest
ment income and included in “Other services.”
3 Includes special military shipments to Israel that are excluded from the
“net exports of goods and services” in the national income and products
(GNP) accounts of the United States.
4 Includes under U.S. Government grants $2 billion equivalent, rep
Total 2
Treasury
Con
vertible
foreign
curren
cies4
14,588
14,642
14,870
14,946
14,912
15,460
15,893
15,890
15,840
15,883
11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,652
11,567
11,567
11,567
11,567
11,567
11,567
11,567
11,567
11,567
11,652
9
9
66
94
12
224
246
193
43
5
761
824
989
1,005
1,021
1,384
1,713
1,739
1,816
1,852
2,166
2,157
2,163
2,195
2,227
2,200
2,282
2,306
2,329
2,374
15,948
16,132
9 16,256
11,635
11,621
11,620
11,635
11,621
11,620
2
2
19
1,908
2,065
9 2,194
9 2,423
Gold stock
SDR’s 3
End of
month
Total
1974
Mar__
Apr.. ..
M ay...
Ju n e ...
July....
Aug. . .
Sept__
O ct.. . .
N ov....
Dec.. . .
1975—
Feb
Reserve
position
in
IMF
SDR’s 3
2,403
2,444
total gold stock is $828 million (Treasury gold stock $822 million), reserve
position in IMF $33 million, and SDR’s $155 million.
8 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.
9 Beginning July 1974, the IMF adopted a technique for valuing the
SDR based on a weighted average of exchange rates for the currencies
of 16 member countries. The U.S. SDR holdings and reserve position
in the IMF are also valued on this basis beginning July 1974. At valua
tion used prior to July 1974 (SDR 1 = $1.20635) SDR holdings at end
of Mar. amounted to $2,343 million, reserve position in IMF, $2,124
million, and total U.S. reserve assets, $16,106 million.
N o t e .—See Table 20 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.
resenting the refinancing of economic assistance loans to India; a cor
responding reduction of credits is shown in line 16.
5 Includes some short-term U.S. Govt, assets.
6 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.
N o t e .—Data are from U.S. Department of Commerce, Bureau of Eco
nomic-Analysis. Details may not add to totals because of rounding.
A 60
GOLD RESERVES □ APRIL 1975
4. 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)
Esti
mated
total
world1
Intl.
Mone
tary
Fund
United
States
Esti
mated
rest of
world
Algeria
Argen
tina
1970.
1971
1972.
1973.
41,275
41,160
44,890
49,850
4,339
4,732
5,830
6.478
11,072
10,206
10,487
11,652
25,865
26,220
28,575
31,720
191
192
208
231
140
90
152
169
239
259
281
311
714
729
792
881
1,470
1,544
1,638
1.781
791
792
834
927
82
80
87
97
64
64
69
77
85
85
92
103
1974— Feh................
Mar...............
49,840
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
6.478
11,652
11.652 31,710
11.652
11.652
11.652 31,705
11.652
11.652
11.652 31,700
11.652
11.652
11,652 *31,665
231
231
231
231
231
231
231
231
231
231
231
169
169
169
169
169
169
169
169
169
169
169
312
312
312
312
312
312
312
312
312
312
312
882
882
882
882
882
882
882
882
882
882
882
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
1.781
927
927
927
927
927
927
927
927
927
927
927
97
97
97
97
97
97
97
97
97
97
97
77
77
77
77
77
76
76
76
76
76
76
103
103
103
103
103
103
103
103
6.478
6.478
11,635
11,622
231
231
312
312
882
882
1.781
1 ,781
927
927
97
97
76
76
Ger
many,
Fed.
Rep. of
Greece
Japan
Kuwait
End of
period
July...............
49,835
49,830
*49,795
1975-
End of
period
France
India
Iran
Iraq
Aus
tralia
Italy
Aus
tria
Bel
gium
Canada
Leb
anon
China,
Rep. of
(Taiwan)
Den
mark
Egypt
Libya
Mexi
co
Nether
lands
1970..........................
1971..........................
1972..........................
1973..........................
3,532
3,523
3,826
4.261
3,980
4,077
4,459
4.966
117
98
133
148
243
243
264
293
131
131
142
159
144
144
156
173
2,887
2,884
3,130
3.483
532
679
801
891
86
87
94
120
288
322
350
388
85
85
93
103
176
184
188
196
1,787
1,909
2,059
2.294
1974—Feb................
Mar...............
Apr................
Mav...............
June...............
July...............
Aug................
Sept...............
Oct.................
Nov...............
Dec................
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.262
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
4.966
148
149
149
149
150
150
150
150
150
150
150
293
293
293
293
293
293
293
293
293
293
293
159
159
159
159
159
158
158
158
158
158
158
173
173
173
173
173
173
173
173
173
173
173
3.483
3,483
3,483
3.483
3.483
3,483
3.483
3.483
3.483
3.483
3,483
891
891
891
891
891
891
891
891
891
891
891
120
123
118
142
130
130
130
130
138
138
148
389
389
389
389
389
389
389
389
389
389
389
103
103
103
103
103
105
107
103
103
103
103
194
156
155
154
154
154
154
154
154
154
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
2.294
1975-—Jan.................
Feb.*.............
4.262
4.262
4.966
4,966
150
150
158
158
173
3.483
3.483
891
891
140
140
389
389
103
103
Portu
gal
Saudi
Arabia
South
Africa
Spain
Thai
land
Turkey
United
King
dom
End of
period
Paki
stan
Sweden Switzer
land
Uru
guay
1,194
2.294
Vene
zuela
Bank
for Intl.
Settle
ments2
1970..........................
1971..........................
1972..........................
1973..........................
54
55
60
67
902
921
1,021
1,163
119
108
117
129
666
410
681
802
498
498
541
602
200
200
217
244
2,732
2,909
3,158
3.513
92
82
89
99
126
130
136
151
1,349
775
800
886
162
148
133
148
384
391
425
472
-2 8 2
310
218
235
1974— Feb................
Mar...............
Apr................
May..............
June..............
July...............
Aug...............
Sept...............
Oct................
Nov...............
Dec................
67
67
67
67
67
67
67
67
67
67
67
1,171
1,176
1,180
1,180
1,180
1,180
1,180
1,180
1,180
1,180
1,180
129
129
129
129
129
129
129
129
129
129
129
783
780
780
777
781
788
778
778
786
774
771
602
602
602
602
602
602
602
602
602
602
602
244
244
244
244
244
244
244
244
244
244
244
3.513
3.513
3.513
3.513
3.513
3.513
3.513
3.513
3.513
3,513
3,513
99
99
99
99
99
99
99
99
99
99
99
151
151
151
151
151
151
151
151
151
151
151
886
886
886
886
886
886
886
886
886
886
886
148
148
148
148
148
148
148
148
148
148
148
472
472
472
472
472
472
472
472
472
472
472
277
274
271
247
259
259
255
259
271
251
250
1975-—Jan.................
Feb.*.............
67
67
1,180
764
759
602
244
244
3.513
3.513
99
99
151
151
472
472
265
272
i Includes reported or estimated gold holdings of international and
regional organizations, central banks and govts, of countries listed in
this table, and also of a number not shown separately here, and gold to be
distributed by the Tripartite Commission for the Restitution of Monetary
Gold; excludes holdings of the U.S.S.R., other Eastern European 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 of total world gold reserves since most of the
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.
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 61
5. U.S. LIQUID AND OTHER LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS, AND LIQUID
LIABILITIES TO ALL OTHER FOREIGNERS
(In millions of dollars)
Liabilities to foreign countries
End
of
period
Total
Liquid
liabili
ties to
IMF
arising
from
gold
trans
actions i
Official institutions2
Liquid liabilities to
other foreigners
Liquid
Total
Short
term
liabili
ties re
ported
by
banks
in
U.S.
Nonmar
Market ketable
able
con
U.S.
vertible
U.S.
Treas.
bonds
Treas.
and
bonds
notes 3
and
notes
Liquid
Nonmar
liabili
ketable Other
ties
noncon readily
to
com
vertible market mercial
U.S.
able
banks
Treas.
liabili abroad 6
bonds
ties 5
and
notes4
Total
Liquid
liabili
ties to
non
mone
Short
tary
Market
term
inti,
able
liabili
and re
ties re
U.S.
gional
ported
Treas. organi
bonds zations {
by
banks
and
in
notes 3*7
U.S.
1963............................
26,394
800
14,425
12,467
1,183
703
63
9
5,817
3,387
3,046
341
1,965
1964 9.........................
/29,313
129,364
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
1965............................
29,569
834
15,826
13,066
1,105
1,201
334
120
7,419
4,059
3,587
472
1,431
1966 9........................
(31,145
\31,020
1,011
1,011
14,841
14,896
12,484
12,539
860
860
256
256
328
328
913
913
10,116
9,936
4,271
4,272
3,743
3,744
528
528
906
905
1967 9.........................
/35,819
135,667
1,033
1,033
18,201
18,194
14,034
14,027
908
908
711
711
741
741
1,807
1,807
11,209
11,085
4,685
4,678
4,127
4,120
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
1,019 i<>15,975
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
1969 9......................... io/45,755
\45,914
1970—Dec. 9..............
\ 46,960
f47,009
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
1971—Dec. n .............
J67,681
\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..................
82,862
61,526
40,000
5,236
12,108
3,639
543
14,666
5,043
4,618
425
1,627
1973—D e c ................
92,404
66,810
43,919
5,701
12,319
3.210
1,661
17,661
5,930
500
430
2,003
1974—Feb..................
M ar.................
Apr..................
May.................
June.................
July.................
Aug.................
Sept.................
Oct..................
Nov.................
Dec..................
91,866
95,634
97,825
101,285
104,026
107,110
109,942
110,628
111,933
115,351
117,787
64,100
65,527
67,154
68,150
69,994
71,091
70,970
72,606
73,718
75,061
76,570
41,992
43,412
45,175
46,167
47,430
48,429
48,382
50,114
50,891
51,809
53,057
5.192
5.192
5,020
5.013
5.013
5.013
4,940
4.880
4.880
4,906
5,059
12,322
12.329
12.330
12.330
12.330
12.330
12.330
12.330
12.330
12.330
12.330
3.210
3.210
3.210
3.210
3.655
3.655
3.655
3.655
3.867
3.867
3.867
1.384
1.384
1,419
1,430
1,566
1,664
1,663
1,627
1,750
2,149
2,257
19,750
22,088
22,520
24,639
25,103
26,810
29,355
27,980
27,970
29,668
30,248
6,223
6,546
6,802
6,894
7,159
7,338
7,522
8,051
8,125
8,407
8,783
5,813
6,146
6,385
6,528
6,796
6,961
7,156
7,658
7,694
7,926
8,285
410
400
417
366
363
377
366
393
431
481
498
1,793
1,473
1,349
1,602
1,770
1,871
2,095
1,991
2,215
2,186
1975—Jan.?5...............
Feb.7'...............
115,885
117,178
75,768
78,316
51,749
53,967
5,177
5,359
12.457
12.457
3.867
3.867
2,518
29,374
27,644
8,713
9,134
8,205
8,524
508
610
2,030
2,084
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 for 1963.
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 2 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.
2,666
2,120
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.
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.
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 nonnegotiable, non-interest-bearing special U.S. notes held
by other international and regional organizations.
A 62
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
6. U.S. LIQUID AND OTHER LIABILITIES TO OFFICIAL INSTITUTIONS
OF FOREIGN COUNTRIES, BY AREA
(A m ounts outstanding; in m illions o f dollars)
End of period
Total
foreign
countries
Western
Europe1
1973........................................................................................
50,651
61,526
66,810
30,134
34,197
45,717
3,980
4,279
3,853
1,429
1,733
2,544
13,823
17,577
10,884
415
777
788
870
2,963
3,024
June.............................................................................
July..............................................................................
Aug..............................................................................
Sept.r...........................................................................
Oct.r ............................................................................
Nov.r...........................................................................
Dec.r ...........................................................................
64,100
65,527
67,154
68,150
69,994
71,091
70,970
72,606
73,718
75,061
76,570
42,391
42,772
42,638
42,951
43,200
43,002
42,292
42,680
43.041
43,223
44,169
4,262
4,195
4,309
4,302
4,201
4,125
3,953
3,819
3,809
3,710
3,665
2,744
2,887
3,532
3,384
4,006
3,951
4,127
4,421
4,046
3,742
4,419
10,878
11,631
12,360
12,988
13,992
15,209
15,526
16,182
17,186
18,525
18,529
1,000
1,249
1,402
1,620
1,854
2,055
2,272
2,850
2,947
3,204
3,161
2,825
2,793
2,913
2,905
2,741
2,749
2,800
2,654
2,689
2,657
2,627
1975—Jan.?............................................................................
Feb...............................................................................
75,768
78,316
43,234
44,540
3,626
3,621
3,659
4,224
19,455
20,125
3,232
3,356
2,562
2,450
1974—Feb...............................................................................
Mar..............................................................................
Apr...............................................................................
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.
Note.—Data represent short- and long-term liabilities to the official
institutions of foreign countries, as reported by banks in the United States;
Latin
American
republics
Canada
Asia
Africa
Other
countries 2
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.
7 . 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 organizations 6
To all foreigners
Payable in dollars
End of period
Total1
U.S.
Treasury
bills and
Time2 certifi
cates3
Deposits
Total
Demand
Other
short
term
liab. 4
Payable
in
foreign
cur
rencies
IMF
gold
invest
ment5
Deposits
Total
U.S.
Treasury
bills and
certifi
Demand Time2
cates
Other
short
term
liab. 7
197 1
197 2
197 3
55,428
60,697
69,022
55,036
60,201
68,425
6,459
8,290
11,310
4,217
5,603
6,863
33,025
31,850
31,886
11,335
14,458
18,366
392
496
597
400
1,367
1,413
1,955
73
86
101
192
202
83
210
326
296
892
800
1,474
1974—Feb.'
M ar.r
Apr . r
Mayr
Juner
July r.
Aug. r
Sept.»
Oct.r.
Nov.r
Dec.r
69,248
72,852
75,244
78,721
80,982
83,945
86,815
87,652
88,552
91,439
93,571
68,478
72,086
74,537
78,068
80,190
83,279
86,069
86,957
87,833
90,695
92,805
11,472
11,651
11,977
11,672
12,856
12,222
11,841
12,769
11,228
12,860
14,054
6,829
6,956
7,303
7,609
8,253
8,643
9,073
9,222
9,789
9,532
10,081
30,274
31,444
32,676
33,983
34,038
34,178
33,179
33,467
34,187
35,020
35,190
19,903
22,034
22,581
24,805
25,043
28,235
31,976
31,499
32,628
33,283
33,480
770
766
706
653
792
666
746
696
719
744
766
0
0
0
0
0
0
0
0
0
0
0
1,693
1,206
1,164
1,388
1,653
1,745
1,921
1,900
1,997
2,036
1,981
77
96
60
95
106
121
81
128
125
128
139
63
63
57
53
66
66
68
69
89
89
105
232
227
209
46
91
51
146
75
93
94
25
1,321
820
838
1,194
1,390
1,508
1,627
1,629
1,690
1,725
1,711
1975—Jan.?.
Feb.*.
91,213
92,016
90,492
91,283
12,299
12,145
10,153
10,324
36,899
39,258
31,142
29,555
721
733
0
1,885
1,880
123
118
104
95
25
89
1,633
1,577
For notes see opposite page.
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 63
7. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE— Continued
(A m ounts outstanding; in m illions o f dollars)
T o official institutions 8
Total to official, banks and other foreigners
Payable in dollars
End of period
Total
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates 3
Other
short
term
liab. 4
Payable
in
foreign
cur
rencies
Payable in dollars
Total
Deposits
Demand
Time2
U.S.
Treasury
bills and
certifi
cates 3
Payable
Other
in
short foreign
term currencies
lia b . 7
1971.
1972.
1973.
53,661
59,284
67,067
6,386
8,204
11,209
4,025
5,401
6,780
32,415
31,523
31,590
10,443
13,659
16,892
392
496
597
39,018
40,000
43,919
1,327
1 ,591
2,125
2,039
2,880
3,911
32.311
31,453
31,511
3,177
3,905
6,245
165
171
127
1974—Feb.
M ar.r.
Apr.r .
May r .
Juner .
Ju ly '..
Aug. r.
Sept.r.
O ct.r .
Nov . r.
D ec.r .
67.555
71,646
74,080
77,334
79,329
82,200
84,893
85,752
86.555
89,403
91,590
11,394
11,555
11,917
11,577
12,750
12,102
11,760
12,641
11,104
12,732
13,915
6,766
6,894
7,246
7,556
8,187
8,578
9,005
9,153
9,700
9,443
9,976
30,042
31,217
32,467
33,937
33,947
34,128
33,033
33,392
34,094
34,927
35,165
18,582
21,215
21,742
23,611
23,652
26,727
30,349
29,870
30,938
31 ,558
31,768
770
766
706
653
792
666
746
696
719
744
766
41,992
43,412
45,175
46,167
47,430
48,429
48,382
50,114
50,891
51,809
53,057
2,408
2,631
2,920
2,352
2,643
2,561
2,473
2,824
2,168
2,472
2,951
3,703
3,800
3,949
4,025
4,277
4,445
4,429
4,313
4,483
4,122
4,324
29,917
31,064
32.312
33,731
33,745
33,749
32,687
32,955
33,634
34,467
34,656
5,836
5,790
5,867
5,931
6,638
7,547
8,665
9,895
10,478
10,621
10,999
127
127
127
127
127
127
127
127
127
127
127
1975—Jan.?..
Feb.?.
89,328
90,135
12,175
12,027
10,049
10,229
36,875
39,169
29,509
27,978
721
733
51,749
53,967
2,187
2,061
4,349
4,357
36,531
38,840
8,683
8,710
To banks9
To other foreigners
Payable in dollars
End of period
Total
Deposits
Total
Demand
U.S.
Treasury
bills and
certifi
cates
Other
shortterm
liab. 4
Deposits
Total
Demand
U.S.
Treasury
bills and
certifi
cates
Other
short
term
liab. 7
To banks
and other
foreigners
Payable in
foreign
cur
rencies
197 1
197 2
197 3
14,643
19,284
23,147
10,721
14,340
17,178
3,399
4,658
6,941
320
405
515
5
11
6,995
9,272
9,710
3.694
4,618
5,500
1,660
1,955
2,143
1,666
2,116
2,353
96
65
68
271
481
936
228
325
469
1974—Feb. '
M ar.;
A pr.r
May r
Juner
July r.
Aug. 1
Sept. 1
Oct.r
Nov . 1
Dec.r
25,563
28,233
28,905
31.167
31,899
33,771
36,511
35,639
35,664
37,594
38,533
19,107
21,449
21,940
24,113
24,439
26,271
28,736
27,411
27,379
29,051
29,609
6,853
6,568
6,599
6,910
7,689
7,105
6,890
7,096
6,361
7,622
8,253
523
506
677
788
996
1,165
1,426
1,576
1,796
1,713
1,856
32
54
63
82
95
204
200
258
268
253
232
11,701
14,321
14,601
16,334
15,660
17,797
20,220
18,481
18,954
19,463
19,268
5,813
6,145
6,385
6,528
6,795
6,961
7,156
7,659
7.694
7,927
8,285
2,134
2,356
2,398
2,315
2,419
2,436
2,397
2,722
2,574
2,638
2,710
2,540
2,588
2,620
2,744
2,915
2,967
3,150
3,264
3,422
3,608
3,796
93
98
92
124
107
175
145
179
193
207
277
1,045
1,104
1,274
1,346
1,355
1,383
1,464
1,495
1,505
1,474
1,502
642
639
579
526
665
539
618
568
591
617
639
1975—Jan.?.
Feb.?
37,579
36.168
28,654
26,911
7,363
7,148
1,943
1,997
158
125
19,190
17,640
8,204
8,524
2,625
2,818
3,757
3,875
186
203
1,636
1,629
721
733
1 Data exclude “holdings of dollars” of the IMF.
2 Excludes negotiable time certificates of deposit, which are included
in “Other short-term liabilities.”
3 Includes nonmarketable certificates of indebtedness issued to official
institutions of foreign countries.
4 Includes liabilities of U.S. banks to their foreign branches, liabilities
of U.S. agencies and branches of foreign banks to their head offices and
foreign branches, bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit.
5 U.S. Treasury bills and certificates obtained from proceeds of sales of
gold by the IM F 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 Principally bankers’ acceptances, commercial paper, and negotiable
time certificates of deposit.
8 Foreign central banks and foreign central govts, and their agencies,
and Bank for International Settlements and European Fund.
9 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 9. Data exclude the holdings of dollars
of the International Monetary Fund; these obligations to the IMF 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 nonnegotiable, noninterest-bearing special U.S. notes held by the Inter-American Develop
ment Bank and the International Development Association.
A 64
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. Am ounts outstanding; in m illions o f dollars)
1972
1973
Dec.
Dec.
1974
1975
Area and country
Europe:
Juner
July r
Aug. r
Sept. r
Oct. r
Nov.r
Dec . r
484
1,828
239
203
3,763
12,602
222
1,327
2,232
878
429
362
1,160
7,216
134
8,558
106
2,851
27
133
530
1,937
251
229
3,611
11,873
298
1,101
2,234
894
422
303
1,049
7,850
106
9,071
100
2,829
26
147
597
1,933
268
219
3,561
9,337
293
3,138
2,498
1,023
435
377
1,096
8,393
100
8,709
151
3,122
40
149
568
2,047
285
223
3,920
8,623
255
2,748
3,009
1,131
411
347
1,071
8,974
121
7,565
136
3,218
44
136
557
2,295
338
262
3,822
9,102
213
2,192
3,177
1,181
338
332
1,103
9,378
102
8,166
105
3,432
33
140
Jan.^
Feb.?
2,506
369
266
4,274
9,420
248
2,617
3,234
1,040
310
382
1,138
10,007
152
7,501
183
4,051
82
206
607
597
2,391
369
204
4,206
9,948
253
2,101
3,208
874
310
379
1,132
9,601
169
6,580
187
3,103
65
172
624
2,647
324
204
4,035
10,801
242
2,260
3,242
826
303
320
1,215
9,465
131
6,100
168
2,749
59
120
!
1
Yugoslavia................................................
Other Western Europe i ..........................
U.S.S.R.....................................................
Other Eastern Europe.............................
272
1,094
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
161
1,483
659
165
3,483
13,227
389
1,404
2,886
965
534
305
1,885
3,377
98
6,148
86
3,352
22
110
310
1,836
266
174
3,425
13,528
232
1,281
2,352
911
411
324
1,211
6,386
125
8,748
100
2,701
27
126
Total..................................................
27,136
40,742
44,473
44,755
44,861
45,438
44,833
46,267
48,595
45,848
45,834
3,432
3,627
3,550
3,595
3,250
3,754
4,226
3,725
3,503
3,405
3,789
Other Latin American republics.............
Netherlands Antilles and Surinam.........
Other Latin America...............................
638
540
605
137
210
6
831
167
225
140
1,078
861
86
44
924
824
860
158
247
7
1,285
282
135
120
1,468
884
71
359
1,378
1,485
782
240
217
6
1,412
550
166
121
2,707
1,071
122
462
1,252
1,546
778
279
264
7
1,411
566
197
122
2,600
1,183
92
672
1,189
3,201
817
253
285
6
1,610
445
185
115
2,999
1,066
103
828
1,105
1,216
873
266
293
7
1,643
511
182
120
3,217
1,214
123
553
1,017
1,678
894
270
292
6
1,731
484
177
128
2,992
1,113
138
508
938
1,741
951
297
305
7
1,731
474
183
140
2,896
1,176
135
839
886
1,452
1,034
276
305
7
1,770
488
272
147
3,413
1,316
158
515
900
2,160
859
284
319
6
1,747
500
256
152
2,918
1,209
155
892
894
2,045
927
281
317
6
1,734
456
238
164
3,351
1,263
132
536
Total..................................................
5,568
7,626
10,722
10,966
13,101
11,321
11,429
11,815
12,038
12,357
12,346
39
675
318
98
108
177
15,843
192
438
171
1,071
38
757
372
85
133
327
6,954
195
515
247
1,202
33
688
462
225
257
256
9,440
262
772
524
2,572
39
772
470
172
863
226
9,991
215
762
451
3,614
40
842
490
131
785
211
9,912
277
715
403
4,252
40
822
621
158
943
217
10,136
304
748
362
4,726
43
797
470
140
1,600
218
10,407
313
726
328
4,832
45
808
551
156
1,363
279
10,891
309
731
333
5,681
50
818
530
261
1,221
386
10,897
384
747
333
5,446
50
977
558
179
1,327
414
10,442
315
702
337
6,003
73
1,015
546
177
1,083
479
10,909
327
642
327
6,136
19,131
10,826
15,491
17,576
18,060
19,076
19,874
21,147
21,073
21,305
21,713
Zaire..........................................................
Other................ ........................................
24
12
115
21
768
35
11
114
87
808
84
39
102
58
1,911
91
54
170
46
2,042
105 S
73
63 I
79
156
157
46
43
2,258
2,893
109
73
138
41
2,973
109
59
155
82
3,199
103
38
130
84
3,197
105
71
150
66
3,272
106
81
188
41
3,392
Total..................................................
939
1,056
2,193
2,403
2,627
3,244
3,333
3,604
3,551
3,664
3,809
3,027
51
3,131
59
2,831
69
2,848
58
2,926
68
2,847
72
2,788
71
2,759
86
2,742
89
2,661
88
2,568
76
2,900
2,906
2,994
2,918
2,859
2,845
2,831
2,748
2,644
86,555
89,403
91,590
89,328
90,135
1,665
232
100
1,752
213
70
1,710
202
69
1,610
226
50
1,602
222
56
Denmark..................................................
Germany...................................................
Netherlands..............................................
Portugal....................................................
Sweden......................................................
Switzerland...............................................
Turkey......................................................
Latin America:
Argentina..................................................
Bahamas 2 ................................................
Brazil........................................................
Chile..........................................................
Colombia..................................................
Peru...........................................................
Uruguay....................................................
Asia:
China, People’s Rep. of (China Mainland)
India..........................................................
Indonesia..................................................
Israel.........................................................
Japan........................................................
K orea........................................................
O ther........................................................
Africa:
Egypt.........................................................
Other countries:
Australia...................................................
Total..................................................
3,077
3,190
Total foreign countries................................
59,284
67,067
79,329
82,200
84,893
85,752
951
307
156
1,627
272
57
1,305
227
122
1,383
253
108
1,567
262
93
1,534
261
103
1,413
1,955
1,653
1,745
1,921
1,900
1,997
2,036
1,981
1,885
1,880
60,697
69,022
80,982
83,945
86,815
87,652
88,552
91,439
93,571
91,213
92,016
International and regional:
International3.........................................
Grand Total......................................
For notes see the following page.
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 65
8. SHORT TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY— Continued
(E nd o f perio d . A m o u n ts o u tsta n d in g ; in m illio n s o f d o lla rs)
S u p p lem en ta ry d a t a 2
1972
Area and country
1973
1974
Apr.
Dec.
Apr.
Dec.
Apr.
Ireland, Rep. o f................................
2
9
15
3
9
17
9
12
22
19
8
62
10
11
53
Other Latin American republics:
Bolivia...............................................
Costa Rica........................................
Dominican Republic........................
Ecuador............................................
El Salvador.......................................
Guatemala........................................
Haiti..................................................
Honduras..........................................
Jamaica.............................................
Nicaragua..................................
Paraguay...........................................
Trinidad and Tobago......................
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
68
86
118
92
90
156
21
56
39
99
29
17
102
88
137
90
129
245
28
71
52
119
40
21
Other Latin America:
Bermuda............................................
British West Indies...........................
( 2)
23
(2)
36
127
100
242
109
201
Other Asia:
Afghanistan.......................................
Burma................................................
Cambodia.........................................
Jordan...............................................
17
5
2
2
25
2
3
4
19
17
3
4
22
12
2
6
11
Other Western Europe:
Cyprus............ .................................
4
6
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.
4 Asian, African, and European regional organizations, except BIS and
European Fund, which are included in “Europe.”
1972
1973
1974
Area and country
Apr.
Other Asia—Cont.:
3
Lebanon.......................................
60
Malaysia....................................... 25
Pakistan........................................
58
Ryukyu Islands (incl. Okinawa) 6 53
Singapore.....................................
45
6
Sri Lanka (Ceylon)......................
Vietnam........................................ 185
Oil-producing countries 7
227
Apr.
Dec.
2
55
54
59
3
55
59
93
3
62
58
105
68
40
108
77
5
135
534
53
6
98
486
141
13
88
652
165
13
98
1,331
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
111
79
20
23
42
331
78
2
3
12
7
6
22
110
118
22
20
29
30
34
39
33
Apr.
j
Other Africa:
Algeria..........................................
Ethiopia (incl. Eritrea)..............
G hana...........................................
31
29
11
14
Liberia..........................................
25
Libya............................................. 296
Nigeria..........................................
56
2
Southern Rhodesia......................
5
Sudan.................................. .
Tanzania.......................................
6
Tunisia..........................................
7
U ganda.........................................
10
7
Zambia.........................................
All other:
New Zealand...............................
Dec.
27
1
2
12
17
11
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 Includes Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
Syria, and United Arab Emirates (Trucial States).
9. 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
To foreign countries
Total
Official
institu
tions
Country or area
Other
Banks1 foreign
ers
Ger
many
United
King
dom
Total
Other
Latin
Europe America
Japan
Other
Asia
All
other
coun
tries
1971..............................
1972 2
1973..............................
902
f l , 000
11,018
1,467
446
562
580
761
457
439
439
706
144
93
93
310
237
259
259
296
56
87
87
100
164
165
165
165
52
63
63
66
30
32
32
245
111
136
136
132
3
1
1
5
87
32
32
78
9
10
10
16
1974—Feb. r ................
Mar . r ...............
Apr . r ................
May r ................
Juner ................
July r.................
Aug. r ................
Sept. r ................
Oct. r.................
Nov.r ...............
Dec...................
1,519
1,577
1,690
1,657
1,650
1,689
1,533
1,402
1,332
1,318
1,265
888
951
1,025
1,005
974
978
1,005
920
852
832
765
631
626
665
652
676
711
528
482
480
485
500
259
259
294
296
321
337
136
93
111
112
124
286
280
282
282
283
299
316
316
299
298
298
86
87
89
74
73
75
76
73
71
75
79
165
165
165
165
165
171
170
170
170
170
170
58
45
56
56
56
56
60
60
48
48
48
231
232
227
220
220
231
45
45
45
45
45
128
130
152
144
144
142
141
123
116
116
115
2
2
2
2
2
2
1
1
1
1
1
35
39
50
52
77
97
97
70
87
88
101
13
13
13
13
12
13
13
13
13
17
20
1975—Jan.*.................
Feb.*.................
1,350
1,359
771
670
580
689
223
336
285
287
71
66
170
170
42
41
26
23
118
119
1
1
200
313
21
21
1 Excludes central banks, which are included with “Official institutions.”
2 Data on the 2 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.
A 66
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
10. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. TREASURY BONDS AND NOTES
(End of period; in millions of dollars)
1973
1974
Dec.
Europe:
Mar.
7
235
34
423
86
5
United Kingdom.............................
7
260
34
439
90
5
Apr.
7
260
33
457
89
5
May
7
260
35
428
87
5
June
7
260
34
424
89
5
July
9
260
35
426
97
5
1975
Aug.
Sept.
9
260
34
439
101
5
Oct.
10
250
34
459
96
5
Nov.
Dec. r
Jan.*
10
250
30
485
102
5
10
276
30
498
98
5
10
251
30
493
97
5
11
252
31
529
89
5
12
252
30
578
83
3
Feb.
789
835
851
823
819
832
849
854
883
917
885
916
959
582
847
848
849
849
851
756
706
707
711
713
697
584
11
3
11
3
11
3
11
5
11
5
11
5
11
5
11
17
11
25
11
62
12
88
11
88
91
148
Total........................................
14
14
14
16
16
16
16
28
36
74
100
99
239
Other Asia.......................................
4,552
11
3,703
11
3,531
11
3,499
12
3,498
12
3,497
12
3,498
12
3,497
12
3,497
12
3,498
12
3,498
212
3,498
325
3,496
541
Canada................................................
Latin America:
Latin American republics...............
Asia:
T otal.........................................
4,563
3,714
3,542
3,510
3,510
3,509
3,510
3,509
3,509
3,509
3,709
3,822
4,037
Africa...................................................
158
157
157
157
157
156
151
151
151
151
151
151
151
All other..............................................
25
25
25
25
25
25
25
25
25
25
6,131
5,592
5,437
5,379
5,376
5,390
5,306
5,273
5,311
5,387
5,557
5,685
5,969
1
48
217
49
141
44
174
41
57
60
51
75
102
71
23
68
71
52
112
67
144
61
84
61
143
60
International and regional:
International...................................
Latin American regional................
Total.........................................
49
267
185
214
117
126
173
91
123
179
205
145
203
Grand total.............................
6,179
5,859
5,622
5,594
5,493
5,516
5,479
5,364
5,434
5,566
5,762
5,830
6,172
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 14).
11. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY TYPE
(Amounts outstanding; in millions of dollars)
Payable in foreign currencies
Payable in dollars
End of period
Total
Total
Official
institu
tions
Banks1 Others
Accept
Collec ances
tions
made
out for acct.
stand of for
ing
eigners
Other
Foreign
govt, se
Deposits curities,
with for coml.
eigners and fi
nance
paper
197 1
1972 2.........
197 3
13,272
15,471
15,676
20,726
12,377
14,625
14,830
20,064
3,969
5,674
5,671
7,689
231
163
163
271
2,080
2,975
2,970
4,555
1,658
2,535
2,538
2,863
2,475
3,269
3,276
4,307
4,254
3,204
3,226
4,156
1,679
2,478
2.657
3,912
895
846
846
662
548
441
441
428
173
223
223
119
1974—Feb.r,
Mar . r
A pr.r
M ay r
July r.
Aug.r
Sept.r
Oct.r.
Nov.r
D ec.r
22,964
25,789
26,695
29,874
32,383
33,680
35,216
34,132
34,250
36,393
38,360
22,120
24,941
25,838
28,990
31,426
32,677
34,411
33,214
33,220
35,365
37,150
7,897
9,029
9,537
9,916
11,450
10,882
11,590
10,598
10,074
11,040
11,383
309
429
354
367
390
480
453
528
371
439
394
4,949
5,776
6,124
6,355
7,726
6,831
7,792
6,719
6,371
7,174
7,430
2,639
2,825
3,059
3,194
3,334
3,571
3,346
3,352
3,332
3,426
3,559
4,427
4,642
4,805
5,081
5,107
5,152
5,295
5,245
5,356
5,345
5,637
4,570
5,150
5,838
6,624
7,599
9,177
9,459
9,538
10,034
10,693
11,190
5,225
6,120
5.657
7,369
7,270
7,467
8,067
7,832
7,756
8,287
8,940
844
849
857
884
957
1,003
805
918
1,030
1,028
1,210
594
545
589
611
687
626
461
468
547
515
668
121
160
99
113
130
207
180
217
243
283
289
1975—Jan.*.
Feb.*,
38,399
38,971
37,110
37,781
10,226
10,348
355
379
6,318
6,432
3,553
3,537
5,565
5,322
10,995
11,081
10,324
11,030
1,289
1,190
719
610
351
336
Juner
1 Excludes central banks, which are included with “Official institutions.”
2 Data on the 2 lines shown for this date differ because of changes
in reporting coverage. Figures on the first line are comparable in cover-
Other
age with those shown for the preceding date; figures on the second line
are comparable with those shown for the following date,
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 67
12. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES, BY COUNTRY
(End o f period. A m ounts outstanding; in m illions o f dollars)
1974
1975
1972
1973
Dec.
Dec.
Juner
July r
Aug. r
Sept.r
Oct. r
Nov.r
Dec.r
Jan.?>
Feb.**
11
148
48
108
621
311
35
316
133
72
23
222
153
176
10
1,459
10
27
46
59
104
230
65
134
731
422
49
572
212
91
32
404
117
663
10
2,463
20
26
47
67
18
266
45
150
703
372
61
437
165
103
30
392
119
386
26
2,362
26
19
35
88
72
207
49
151
760
379
66
441
112
136
24
382
139
355
19
2,619
25
22
30
89
17
164
51
146
637
342
59
354
130
113
26
253
159
377
15
2,228
28
18
21
102
21
301
59
128
485
332
48
340
176
94
35
227
149
277
15
1,852
24
31
27
105
42
308
45
107
791
438
57
340
183
97
25
201
160
339
14
2,332
28
38
28
86
21
384
46
122
673
589
64
345
348
119
20
196
180
335
15
2,401
22
22
46
131
18
401
54
132
867
390
52
351
195
115
16
184
128
252
23
2,663
38
22
44
124
38
586
53
136
873
435
42
277
210
106
39
166
99
267
17
2,733
18
27
48
100
Area and country
Europe:
Belgium-Luxembourg..............................
Finland......................................................
France.......................................................
Germ any...................................................
Greece.......................................................
Italy...........................................................
Portugal....................................................
Spain.........................................................
Sweden......................................................
Switzerland...............................................
Turkey.......................................................
United Kingdom.....................................
Yugoslavia................................................
U.S.S.R......................................................
Other Eastern Europe.............................
8
120
59
118
330
321
29
255
108
69
19
207
164
125
6
997
22
20
41
49
3,067
3,988
6,458
5,804
6,073
5,239
4,724
5,660
6,076
6,067
6,270
1,914
1,955
2,205
2,348
2,111
2,032
2,556
2,517
2,773
2,904
2,642
Uruguay....................................................
Venezuela..................................................
Other Latin American republics.............
Netherlands Antilles and Surinam.........
Other Latin America...............................
379
519
649
52
418
13
1,202
244
145
40
383
388
14
36
499
875
900
151
397
12
1,373
266
178
55
518
493
13
140
673
1,888
1,477
187
522
13
1,720
392
281
40
606
675
41
358
686
1,558
1,507
224
601
12
1,770
400
353
59
644
690
38
312
704
2,086
1,522
231
679
13
1,828
401
421
50
642
700
56
448
695
2,486
1,534
250
665
14
1,706
410
408
47
627
711
64
370
679
2,763
1,476
256
686
13
1,836
405
433
46
557
724
61
693
704
2,616
1,493
291
675
13
1,898
402
486
63
643
810
74
920
720
2,949
1,415
290
713
14
1,972
503
518
63
704
852
62
1,138
783
3,261
1,264
303
706
13
1,898
604
504
75
795
873
45
1,451
808
3,973
1,345
351
677
18
2,004
458
531
86
746
897
40
1,541
Total..................................................
4,480
5,870
8,872
8,856
9,781
9,989
10,628
11,088
11,913
12,575
13,475
Asia:
China, People’s Rep. of (China Mainland)
China, Republic of (Taiwan)..................
Hong Kong..............................................
India..........................................................
Indonesia..................................................
Israel.........................................................
Jap an........................................................
Korea........................................................
Philippines................................................
Thailand....................................................
O ther.........................................................
1
194
93
14
87
105
4,152
296
149
191
300
31
140
147
16
88
166
6,400
403
181
273
394
23
354
208
18
115
145
10,843
620
302
421
708
28
403
200
20
117
193
12,395
641
295
427
816
22
443
271
34
120
192
12,814
706
348
429
677
9
461
243
17
122
197
12,390
733
340
436
669
7
496
214
19
128
200
11,714
760
346
414
669
5
482
238
16
140
208
12,406
835
324
416
666
4
497
223
14
157
250
12,496
955
371
441
771
18
524
203
19
142
265
11,811
1,116
300
374
739
82
472
174
31
159
284
11,226
1,286
349
365
776
5,584
8,238
13,757
15,534
16,056
15,617
14,966
15,737
16,178
15,510
15,204
O ther.........................................................
21
4
143
13
118
35
5
129
60
159
66
5
202
91
273
68
14
213
93
286
83
10
238
97
275
97
10
243
94
311
93
11
282
107
312
91
12
299
101
291
111
18
329
96
299
106
19
364
31
265
114
15
396
38
291
Total..................................................
299
388
637
675
702
755
806
795
854
785
853
291
40
243
43
383
70
400
63
415
77
422
76
478
91
492
104
466
99
433
125
431
95
Latin America:
Argentina..................................................
Brazil........................................................
Chile..........................................................
Colombia..................................................
Panam a.....................................................
Africa:
Egypt.........................................................
Morocco...................................................
South Africa.............................................
Other countries:
Australia...................................................
Total foreign countries................................
330
286
453
463
492
498
569
597
565
558
526
15,674
20,725
32,383
33,680
35,215
34,130
34,249
36.392
38,359
38.398
38.970
1
1
38,360
38.399
38.971
3
1
1
1
1
2
1
1
15,676
20,726
32,383
33,680
35,216
34,132
34,250
36.393
1 Includes Bermuda through Dec. 1972.
N ote.—Short-term claims are principally the following items payable
on demand or with a contractual maturity of not more than 1 year: loans
made to, and acceptances made for, foreigners; drafts drawn against
foreigners, where collection is being made by banks and bankers for
their own account or for account of their customers in the United States;
and foreign currency balances held abroad by banks and bankers and
their customers in the United States. Excludes foreign currencies held
by U.S. monetary authorities.
A 68
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
13. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS
IN THE UNITED STATES
(A m o u n ts o u tsta n d in g ; in m illio n s o f d o lla r s)
Country or area
Type
Payable in dollars
End of
period
Total
Loans to—
Other
Banks1 foreign
ers
Other
long
term
claims
Payable
in
foreign
curren
cies
United
King
dom
Other
Europe
Latin
Canada America
Japan
Other
Asia
All
other
coun
tries 2
Total
Official
institu
tions
1971................. 3,667
J4,954
1Q'TO**
15,063
1973................. 5,962
3,345
4,539
4,588
5,412
575
833
844
1,145
315
430
430
574
2,455
3,276
3,314
3,692
300
375
435
478
22
40
40
72
130
145
150
148
593
704
703
1 ,107
228
406
406
490
1,458
1,996
2,020
2,112
246
319
353
251
583
881
918
1,320
429
503
514
534
1974—Feb.r. ..
M ar.r . .
A pr.r. ..
May r. ..
Juner. ..
Ju ly '. ..
Aug.r. ..
Sept.r . .
Oct.' . . .
Nov.r. ..
Dec.r. ..
5,995
6,174
6,783
6,830
7,087
7,115
7,055
6,999
7,250
7,251
7,155
5,394
5,558
6,140
6,214
6,475
6,502
6,448
6,386
6,571
6,561
6,481
1,205
1,281
1,571
1,570
1,622
1,490
1,456
1,419
1,441
1,373
1,331
601
657
751
772
792
909
913
853
914
933
931
3,588
3,620
3,819
3,872
4,061
4,104
4,080
4,113
4,216
4,254
4,219
522
541
567
550
546
545
539
542
608
618
609
79
75
76
67
66
67
68
71
71
72
65
154
157
201
224
222
249
285
266
333
339
329
1,183
1,288
1,574
1,559
1,686
1,603
1,545
1,535
1,725
1,652
1,578
457
473
478
467
496
498
503
543
523
506
486
2,087
2,155
2,370
2,434
2,487
2,552
2,527
2,479
2,495
2,574
2,602
256
256
254
241
244
269
269
247
264
257
258
1,343
1,352
1,373
1,381
1,434
1,423
1,416
1,425
1,396
1,392
1,359
515
494
532
524
518
520
511
505
515
531
542
1975—Ja n .* ... 7,262
Feb.*... 7,457
6,624
6,797
1,368
1 ,378
967
1 ,059
4,289
4,360
583
606
54
54
323
347
1,669
1 ,749
475
485
2,603
2,675
248
248
1,388
1,355
558
598
1 Excludes central banks, which are included with “Official institutions.”
2 Includes international and regional organizations.
3 Data on the 2 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.
14. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES BY TYPE
(In millions of dollars)
U.S. corporate
securities2
Marketable U.S. Treas. bonds and notes1
Foreign bonds
Net purchases or sales
Period
Total
1972............................. 3,316
305
1973.............................
1974............................. -4 1 7
Intl.
and
regional
57
-165
156
Pur
chases
Foreign
Total
Official
3,258
470
-573
3,281
465
-6 4 2
Net pur Pur
Sales chases or chases
sales
-2 3 19,083 15,015
6 18,569 13,810
69 15,624 13,661
1,901
1,474
1,045
2,932 -1 ,0 3 1
2,467
-993
3,325 -2,281
1,762 -1 ,5 1 3
409
412
300
112
2,808
2,310
498
248
-4 5
157
-237
-2 8
-101
23
-3 7
-116
70
132
196
31
166
-8 2
29
—97
9
47
-8 2
32
57
26
-7 7
-1 0
-155
-5 7
-3
14
-8 4
-3 3
38
76
171
-3 7
25
153
-39
-1 0
16
-5 0
-3
14
-1 1
27
38
50
17
1,202
1,672
1,126
903
1,174
1,049
1,400
1,361
1,568
1,415
1,037
1,189
1,484
904
852
923
1,056
1,132
1,183
1,364
1,311
808
13
188
222
51
251
-7
268
178
205
103
228
100
102
103
89
74
94
59
72
86
92
101
1975-—Jan.*................
Feb.*...............
68
341
-6 0
57
127
285
118
182
9
102
1,155
1,653
904
1,406
251
247
131
118
-1 7 2
-7
-7 3
-6 0
Net pur
chases
sales
4,068
4,759
1,963
1975--Jan.-Feb.*. . ..
-3
Sales
PurSales
Sales
2,532
1,729
1,899
2,123
1,554
1,718
409
176
181
Net pur
chases oi
sales
Other
1974--F e b ..................
Mar..................
Apr..................
May.................
June.................
July r ................
Aug. r ...............
Sept.r ..............
Oct.r ...............
Nov.r ..............
Dec. r ...............
1 Excludes nonmarketable U.S. Treasury bonds and notes issued to
official institutions of foreign countries.
2 Includes State and local govt, securities, and securities of U.S. Govt,
agencies and corporations. Also includes issues of new debt securities
Foreign stocks
281
329
-4 8
-4 5
-2 9 5
-219
-6 4
-1 9 7
-158
-1 5 5
-8 0
-2 7 6
-7 8
-423
206
167
189
173
207
128
146
145
89
124
117
206
183
155
174
117
116
117
100
152
102
87
-1
-1 6
34
-2
90
12
29
45
-6 3
22
30
1,207 -1 ,0 7 6
555
-4 3 7
147
134
156
173
-9
-3 9
145
398
323
154
272
251
214
152
362
170
524
sold abroad by U.S. corporations organized to finance direct investments
abroad.
N o t e . — Statistics include transactions of international and regional
organizations.
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 69
15. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY
(In millions o f dollars)
Ger
many
Nether Switzer United
lands
land
King
dom
Pur
chases
Sales
Net pur
chases or
sales (—)
14,361
12,762
7,552
12,173
9,978
7,095
2,188
2,785
457
372
439
203
-51
2
39
297
339
330
642
685
36
1974—Fe b
Mar..........
Apr...........
May..........
June.........
July r ........
Aug.r.......
Sept. r . . . .
Oct............
Nov.r . . . .
Dec.r ........
743
896
577
576
521
508
580
447
673
604
450
586
846
559
591
513
510
502
445
695
616
429
157
49
19
-1 5
8
-2
78
2
-2 2
-1 2
-21
39
14
22
18
-1 5
13
19
-9
17
5
13
5
-26
17
7
8
5
18
17
-30
1
13
54
40
35
29
33
39
16
21
9
-2
20
40
24
-3
5
11
-9
15
-6
-3 9
-3 5
-1 0
1975—Jan.-Feb.*
2,113
1,390
723
55
22
1975—Jan.*........
Feb...........
731
1,382
541
849
190
534
34
21
8
14
Period
197 2
197 3
197 4
Other
Europe
Total
Europe
561
366
-304
137
274
50
1,958
2,104
354
-78
99
-6
-3 2
-1
-3 3
256
577
131
83
5
10
-6
14
-1 4
-36
-1 8
-4 9
7
-2 2
-8 2
-51
-7 6
33
25
-3 5
-5
-3
3
-11
-3
11
4
9
165
91
21
19
16
2
64
-3
-1 1 4
-7 7
-3 0
-2 1
-1 0
-7
13
10
14
6
3
-2
14
1
9
2
-1 5
-7
-2
9
4
2
-5
10
-9
-2 9
3
-1 4
-1 5
-1 4
-1 0
-6
95
70
27
1
-1
2
2
2
2
*
1
-7
1
139
24
438
32
234
17
-7
147
15
9
107
331
12
20
84
150
2
15
42
115
Latin
Canada America
Asia Other1
i Includes international and regional organizations.
16. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY
(In millions of dollars)
Period
Ger
France many
Total
197 2
197 3
197 4
1,881
1,948
1,614
336
201
96
1974—Fe b
Mar..........
Apr...........
May.........
June.........
July..........
Aug..........
Sept..........
Oct...........
Nov . r . . . .
Dec.r........
-1 4 4
139
203
66
242
-5
190
176
226
224
207
1
1
60
10
5
-1
1
1
10
4
1
1975—Jan.-Feb.*
-225
-1
1975—Jan.*........
Feb.*........
77
-3 3
33
*
*
3
*
3
2
*
1
1
-1
*
2
-4
61
-2 8 7
Other
Nether Switzer United
lands
land Kingdom Europe
Total
Europe
6
74
-1 9
183
*
-2
*
*
116
72
1
-1
-1
2
-4
*
3
3
*
*
Latin
Canada America
Asia
135
307
96
*
6
8
28
15
2
-1
2
13
-1
1
367
275
352
315
473
-5 9
1,303
1,204
702
82
49
50
22
44
43
323
588
557
45
-7 9
26
19
64
36
29
54
6
-2 0
54
-1 5
-6
17
1
-1 7
-1 1
-9
-3
-5
-6
5
30
-8 1
114
59
185
100
21
55
25
-2 3
56
-2
-1
4
3
1
1
2
4
18
11
-4
-5
6
-1
5
4
5
4
2
5
1
17
-119
-1
*
3
-3
7
199
-1 5
100
398
93
8
24
6
-6
30
-1
6
3
59
-8 3
N ote.—Statistics include State and local govt, securities, and securities
of U.S. Govt, agencies and corporations. Also includes issues of new
5
1
74
-8 0
14
16
-1
*
Other Intl. and
Africa countries
regional
2
*
8
*
*
*
*
*
*
*
*
*
*
*
10
10
*
*
«
*
*
10
*
*
*
*
*
148
52
253
-4 7
215
86
-3
56
-128
-36
130
79
-163
45
189
*
1
-438
152
37
*
*
*
1
-177
-2 6 0
debt securities sold abroad by U.S. corporations organized to finance di
rect investments abroad.
17. NET PURCHASES OR SALES BY FOREIGNERS OF
LONG-TERM FOREIGN SECURITIES, BY AREA
18.
FOREIGN CREDIT AND DEBIT
BALANCES IN BROKERAGE ACCOUNTS
(In millions of dollars)
(Amounts outstanding; in millions of dollars)
Period
Total
1972................
-6 2 2
1973................
-8 1 8
1974................ -2 ,0 5 8
Intl.
and
re
gional
Total
foreign
coun
tries
-9 0
-5 3 2
139
-9 5 7
-6 0 -1 ,9 9 9
6
4
3
5
3
1
2
12
2
3
-9 5
-5 2
-315
-147
-71
-107
-147
-127
-4 7
-342
-5 9
-298
Eu
rope
Latin
Canada Amer Asia
ica
Af
rica
Other
coun
tries
505
-635
-141
-569
-5 4 4 -1 ,5 2 9
-6 9
-120
-9 3
-296
-168
138
-6 6
3
7
29
37
22
-11
-288
-157
-3 5
-121
-108
-126
-3 7
-2 4 4
-8
-1 9 0
-9
-1 5
6
-2 2
-6
-1
-9
5
*
-1 4
-2 5
32
10
12
10
94
24
42
22
-1 8
-21
-6 7
-4
*
1
—1
—1
1
—1
2
12
1
3
*
3
*
3
1
3
2
3
*
-6 2
-2 4
-8
-2 6
-7 5
-6 3
-3 5
-41
-81
-21
-2 7
1974—F e b ....
Mar__
A pr.r . .
M ay. ..
Juner ..
July.. . .
Aug---Sept__
Oct......
N ov.r. .
Dec.r . .
-4 6
-311
-1 4 4
-6 6
-105
-1 4 6
-1 2 6
-3 5
-3 4 0
-5 6
-393
1975—Ja n .-...
Feb.*. .
-6 1 0
-718
-843
-2 2
-565
-124
-154
22
*
1975—Jan.*... -1 ,0 8 5
Feb.*. . -4 7 6
-5 72
-147
-5 1 4
-329
-41
19
-405
-1 6 0
-2 8
-9 7
-6 0
-9 4
20
2
*
*
*
*
End of
period
Credit
balances
(due to
foreigners)
Debit
balances
(due from
foreigners)
311
314
312
286
372
339
336
405
310
316
290
333
364
243
255
231
383
354
298
293
225
241
178
193
N ote.—Data represent the money credit balances and
money debit balances appearing on the books of reporting
brokers and dealers in the United States, in accounts of
foreigners with them, and in their accounts carried by
foreigners.
A 70
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
19a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)
Claims on U.S.
Location and currency form
IN ALL FOREIGN COUNTRIES
Total, all currencies.........................
Payable in U.S. dollars.
IN UNITED KINGDOM
Total, all currencies........ .
Payable in U.S. dollars.
IN BAHAMAS AND CAYMANS 1
Total, all currencies...........................
For notes see p. A-74.
Month-end
Total
Total
Parent
bank
Claims on foreigners
Other
Total
Other
branches
of parent
bank
Other
banks
Non
Offi
bank
cial
for
insti
tutions eigners
1972—Dec.
1973—Dec.,
78,202
121,866
4,678
5,091
113
1974—Ja n ..
Feb..
Mar.
A pr..
May.
June.
July.
Aug..
Sept..
Oct..
Nov..
D ec..
123,871
127,246
136,983
140,018
145,916
147,465
145,004
148,568
147,643
145,759
150,070
151,529
4,660
4,409
7,812
5,978
7,893
6,280
1,555
1,612
5,334
3,502
5,327
4,093
3,795
6,957
3,975
2,244
4,686
3,846
1975—Jan.*
151,002
6,543
3,873
2,669 138,493
1972—Dec..
1973—Dec..
52,636
79,445
4,419
4,599
2,091
1 ,848
2,327
2,751
47,444
73,018
1974—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
Aug..
Sept..
Oct..
Nov..
Dec..
81,918
83,963
92,908
94,290
100,264
101,702
101,502
105,694
104,292
101,859
104,902
105,617
4,186
4,004
7,394
6,972
5,984
1 ,518
1 ,557
5,250
3,454
5,279
4,043
3,746
6,904
3,917
2,187
4,632
3,810
2,668
2,448
2,143
2,165
2,268
2,410
2,373
2,239
2,426
2,409
2,340
2,174
75,993
78,013
83,572
86,483
90,202
92,630
92,693
93,672
94,901
94,316
94,891
96,478
13,245
13,785
15.799
16,043
16,890
17,478
18,480
19,679
19,412
19,757
20,610
19,665
1975—Jan.*
105,641
6,219
3,832
2,387
96,340
1972—Dec..
1973—Dec..
43,467
61,732
2,234
1,789
1,138
738
1,096
1,051
40,214
57,761
1974—Jan..
Feb..
Mar..
Apr..
May.
June.
July.
Aug..
Sept..
O ct..
Nov..
D ec..
63,757
63,585
68,076
68,959
71,982
71,305
69,197
70,382
70,965
68,123
69,137
69,804
1,484
1,477
3,070
2,589
3,792
3,661
3,309
4,008
3,494
1,873
3,387
3,248
521
616
2,319
1,806
2,969
2/712
2,468
3,266
2,721
1,050
2,568
2,472
964
861
751
783
823
949
840
741
774
823
818
776
60,185
59,792
63,020
64,238
66,008
65,517
63,711
64,087
64,962
63,914
63,571
64,111
9,123
9,209
10,706
10,819
11,759
11,886
12,486
12,790
12,436
12,386
13,122
12,724
1975—Jan.*
68,451
2,633
1,902
731
63,527
12,873 32,057
1972—Dec..
1973—Dec..
30,257
40,323
2,146
1,642
27,664
37,816
4,326
6,509
17,874
23,899
1974—Jan..
Feb..
Mar..
A pr..
May.
June.
July.
Aug..
Sept..
O ct..
Nov..
Dec..
42,131
41,762
46,062
46,419
49,654
49,363
48,158
49,406
50,075
47,968
48,710
49,211
1,368
1,384
2,967
2,499
3,693
3,562
3,221
3,915
3,408
1,783
3,277
3,146
39,932
39,409
42,212
42,895
44,825
44,674
43,798
44,269
45,327
44,873
44,198
44,693
6,825
6,902
8,240
8,386
9,285
9,425
9,932
10,529
10,305
10,234
10,796
10,265
1975—Jan.*
47,769
2,542
43,959
10,421
1972—Dec..
1973—Dec..
12,642
23,771
1,486
2,210
214
317
1,272
1,893
10,986
21,041
1974—Ja n ..
Feb..
Mar..
Apr..
May.
June.
July.
Aug..
Sept..
Oct..
Nov..
Dec..
24,071
25,657
28,444
28,776
30,862
31,217
30,401
32,248
30,078
30,028
32,207
31,512
2,108
1,874
3,358
2,388
3,164
2,262
2,125
4,305
2,033
1,876
2,827
1,845
273
167
1,971
954
1,698
816
615
2,834
469
380
1,343
463
1,835
1,707
1,386
1,434
1,467
1,446
1,510
1,471
1,564
1,495
1,484
1,382
1975—Jan.*
233,082
2,737
1,108
1,629
27565 71,304
3,205 111,974
3,105
2,797
2,478
2,476
2,566
2,682
2,614
2,498
2,645
2,634
2,592
2,434
114,562
117,755
123,997
128,823
132,513
134,954
132,885
133,235
134,845
134,921
136,713
138,960
11,504 35,773
19,177 56,368
Other
1 ,594 22,432
2,693 33,736
2,220
4,802
34,51
36,360
37,497
39,050
39,534
41,783
41,549
42,931
43,701
44,676
45,658
47,129
4,649
5.081
5,174
5,217
5,510
5,736
5,710
5.878
6,179
5,959
6,078
6,289
27,870 58,821
4,151 47,651
5,966
7,869 26,251
12.799 39,527
1,059 12,264
1,777 18,915
773
1 ,828
20,021
21,094
22,013
22,685
23,099
24,529
24,929
25,586
26,293
26,862
27,376
28,520
1 ,799
1 ,946
1,941
2,188
2,514
2,619
2,691
2.879
3,049
2,947
3,038
3,155
20,425 43,108
3,370 29,437
3.082
5,659 23,842
8,773 34,442
606 10,106
735 13,811
1,018
2.183
19,490
20,357
227397
23.119
24,583
25.120
25,726
26,413
26,321
26,929
28,353
27,536
57,663
57,894
60,563
62,901
64,693
64,441
61.921
60.468
61 ,102
59.468
58,684
60,220
40,661
40.922
43,273
44,919
47,373
47,819
46,394
45,627
46,322
44,691
43,713
45,004
35,796
34,813
36,192
36,775
37,920
36,468
34,575
33,929
34,804
33,500
32,128
32,701
2,891
3,144
3,539
3,753
3,703
3,610
3,688
3,422
3,720
3,848
4,01“
4,075
2,006
2,211
2,487
2,835
2,841
2,803
2,889
2,780
2,873
3,006
3,192
3,289
907
916
887
1,073
889
812
718
666
829
887
753
788
14,359
14,853
15,235
15,572
15,439
16,352
15,932
16,701
16,893
17,141
17,567
17,898
2,087
2,317
1,986
2,131
2.183
2,126
2,177
2,287
2,509
2,336
2,179
2,445
854 17,743
2,291
5,464
7,409
446
865
25,098
24,415
25,365
25,768
26,994
26,147
24,698
24,500
25,564
25,125
23,551
24,326
8,010
8,093
8,608
8,741
8,546
9,103
9,169
9,241
9,458
9,514
9,852
10,102
830
969
882
10,24
1,135
1,126
1,138
1,222
1,339
1,312
1,235
1,372
23,271
10,268
1,267
6,663
12,974
4,322
8,068
170
520
21,439
23,253
24,475
25,765
26,953
28,168
27,461
27,164
27,189
27,362
28,497
28,851
13.013
14,226
15,404
16,086
17,035
17,643
16,821
16,156
16.013
16,279
17,192
16,853
8,425
9,026
9,071
9,679
9,918
10,524
10,640
11,009
11,177
11,083
11,305
11,998
524
530
611
623
744
787
815
779
856
790
883
815
29,506
16,863
12,643
839
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 71
19b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS
(In millions o f dollars)
To foreigners
To U.S.
Total
Total
Parent
bank
Other
Total
3,501
5,126
997
1,158
2,504 72,121
3,968 111,615
0 5,349
6 5,934
3 6,790
8 6,959
6 7,995
5 8,549
4 10,129
8 9,307
3 9,911
9 10,357
1 11,706
? 11,655
1,685
2,023
2,119
2,307
2,938
3,009
4,373
4,011
4,988
5,761
6,054
5,481
3,664
3,911
4,671
4,652
5,057
5 ,54(
5,757
5,296
4,923
4,596
5,652
6,173
151,0022 11,785
6,309
3
6
113,750
116,392
124,885
127,584
131,976
132,326
128,565
132,738
131,015
128,866
131,629
132,943
5,476 132,684
Other
branches
of parent
bank
Other
banks
Non
Offi
bank
cial
for
insti
tutions eigners
Other
Month-end
18,505
19,307
21,073
22,688
23,941
24,234
25,279
26,000
26,353
26,616
27,754
26,950
67,726
67,531
71,736
71,232
74,193
71,692
66,753
68,750
66,060
62,580
63,576
65,683
9,823I 17,696*
10,373t 19,181
10,746►21,33C)
11,612: 22,052!
12,187 21,655:
14,388: 22,0131
15,130i 21,403i
16,304 21,684•
17,488 21,114
18,171 21,499
19,979 20,320•
20,133 20,178
26,988 64,234 21 ,541
847
993
2,202
3,550
50,406
73,189
7,955 29,229
12,554 43,641
4,826
5,429
6,219
6,389
7,405
l 7,934
9,494
8,674
9,224
9,813
11,020
11,109
1,556
1,870
1,917
2,127
2,741
2,800
4,160
3,820
4,763
5,558
5,828
5,314
3,270
3,559
4,301
4,262
4,664
5,135
5,334
4,853
4,461
4,255
5,192
5,795
74,900
76,745
84,378
85,617
89,846
90,357
89,228
94,154
92,640
90,105
92,255
92,470
12,736
13,329
15,071
15,783
16,694
17,070
18,404
19,449
19,614
19,478
20,280
19,338
108,052 11,322
6,157
5,164
1,453
> 2,431
113
136
2,429
2,573
3,167
3,123
3,729
3,744
3,439
3,701
3,503
3,227
4,376
3,978
19,920'
4,741
1974—Jan.
4,919
5 ,30E! .....................Mar.
5,474
5,944
6,589
6,309
6,523
6,718
6,536
6,736
6,931
6,533 ...........1975—Jan.^
6,781
7,491
6,441
9,502
1,422 ......... 1972—Dec.
2,611 ......... 1973—Dec.
44,903
44,438
48,886
47,847
50,848
48,909
45,668
48,379
46,017
42,664
43,134
43,671
7,432
8,045
8,475
9,195
9,817
11,630
12,437
13,508
14,533
15,076
16,789
17,392
9,828
10,933
11,945
12,792
12,488
12,748
12,719
12,819
12,476
12,887
12,052
12,068
2,459 ......... 1974—Jan.
2,441 .....................Feb.
2,811
2,913
3,461
4,009
3,673
3,943
4,078
3,891
3,976
3,949
92,953
19,969 42,941
18,201
11,843
3,777 ...........1975—Jan.?
1,340
2,295
41,020
57,311
2,961 24,596
3,944 34,979
346
269
353
409
749
606
611
713
635
683
889
510
2,083
2,303
2,814
2,714
2,979
3,138
2,828
2,988
2,867
2,544
3,487
3,468
59,356
58,956
63,096
63,914
66,156
65,429
63,557
64,309
64,919
62,621
62,397
63,409
4,350
4,193
4,587
4,975
4,890
4,913
5,099
4,794
5,428
5,237
5,071
4,762
3,804
873
2,931
62,360
4,567 30,266 16,419 11,108
1,272
2,173
72
113
1,200
2,060
29,002
36,646
2,008 17,379
2,519 22,051
49,301
48,970
48,018
49,481
50,212
48,314
49,668
49,666
2,200
2,346
2,927
2,878
3,481
3,516
3,176
3,448
3,177
2,988
4,037
3,744
329
243
329
384
724
579
568
692
605
651
865
484
1,871
2,103
2,598
2,494
2,757
2,937
2,608
2,756
2,572
2,337
3,172
3,261
37,884
37,579
41,708
42,453
44,625
44,214
43,528
44,654
45,550
44,033
44,256
44,594
2,846
2,729
3,063
3,234
3,083
3,255
3,364
3,278
3,667
3,690
3,557
3,256
48,490
3,599
854
2,744
f
68,451
36,796
35,355
37,700
36,524
39,596
36,711
34,293
33,920
33,766
30,621
30,352
32,040
6,433 7,030
8,140 10,248
994 ......... 1972—Dec.
1,990 ......... 1973—Dec.
10,332
11,112
12,217
13,175
12,398
12,516
12,521
12,858
12,181
12,712
11,521
11,349
1,941 ......... 1974—Jan.
2,057
1,813
1,922
2,097
2,132
2,201
2,373
2,543
2,275
2,363
2,418
7,880
8,295
8,592
9,240
9,273
11,289
11,643
12,737
13,544
14,051
15,454
15,258
4,287
6,152
535 ......... 1972 Dec
839 ......... 1973—Dec.
6,006
6,476
6,830
7,401
7,468
9,137
9,550
10,437
11,035
11,444
12,808
13,225
6,262
7,044
7,650
8,612
8,064
8,155
8,326
8,382
8,030
8,696
7,691
7,587
895 ......... 1974—Jan.
1,006
969
992
1,195
1,239
1,314
1,380
1,486
1,294
1,375
1,328
43,578
3,172 19,061 13,736
7,609
1,313
22,770
21,330
24,164
23,207
26,010
23,669
22,287
22,558
22,818
20,203
20,200
20,526
.Payable in U.S. dollars
IN UNITED KINGDOM
.. .Total, all currencies
2,287
5,329
5,923
12,643
23,771
1,220
1,573
11,260
21,747
1,818
5,508
8,105
14,563
1,338
1,676
163 ......... 1972—Dec.
451
24,071
25,657
28,444
28,776
30,682
31,217
30,401
32,248
30,078
30,028
32,207
31,512
1,931
2,244
2,351
2,283
2,567
2,855
3,684
2,797
3,651
4,219
4,231
4,489
21,714
22,979
25,551
26,015
27,704
27,723
26,037
28,713
25,694
25,044
27,196
26,242
5,266
5,587
6,608
7,102
8,255
7,642
7,663
8,124
7,142
7,262
8,629
7,808
14,722
15,448
16,853
16,809
17,217
17,593
16,223
18,403
16,259
15,650
16,427
16,426
1,726
1,944
2,089
2,104
2,231
2,488
2,151
2,186
2,293
2,132
2,139
2,008
425
435
543
479
591
639
681 .....................July
738
733
765
780
781
2 33,082
4,991
27,338
8,269
16,852
2,217
753
For notes see p. A-74.
IN ALL FOREIGN COUNTRIES
.. .Total, ail currencies
11 ,121 41,218 8,351 11,432: 2,580► . , , 1972—Dec.
18,213i 65,625 10,276i 17,5631 5,125
1973—Dec.
3,050
4,544
3
3
Location and currency form
.Payable in U.S. dollars
.
IN BAHAMAS AND CAYMAN Si
.. .Total, all currencies
A 72
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
20. DEPOSITS, U.S. TREAS. SECURITIES,
AND GOLD HELD AT F.R. BANKS FOR
FOREIGN OFFICIAL ACCOUNT
21. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS
REPORTED BY NONBANKING CONCERNS
(Amounts outstanding; in millions of dollars)
(In millions of dollars)
Payable in
Payable in dollars foreign currencies
Assets in custody
End of
period
Deposits
U.S. Treas.
securities1
Earmarked
gold
1972.
1973.
1974.
325
251
418
50,934
52,070
55.600
215,530
217,068
16.838
1974—Mar..
A p r..
May.
June.
July.,
Aug.,
Sept..
Oct..
Nov.,
D ec..
366
517
429
384
330
372
411
376
626
418
51,342
52,642
54,195
54,442
54,317
53,681
53,849
54,691
55,908
55.600
17,037
17,026
17,021
17,014
16,964
16,917
16,892
16,875
16,865
16.838
1975—Jan..,
Feb.
Mar..
391
409
402
58,001
60,864
60,729
16,837
16,818
16,818
End of
period
1 Marketable U.S. Treasury bills, certificates of in
debtedness, notes, and bonds and nonmarketable U.S.
Treasury securities payable in dollars and in foreign
currencies.
2 The value of earmarked gold increased because of the
changes in par value of the U.S. dollar in May 1972, and
in Oct. 1973.
Total
Short
Short
term Deposits term
Deposits invest
invest
ments 1
ments 1
United
King
dom
Canada
19712
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
19722
1973...................
/1,965
(2,374
3,184
1,446
1,910
2,603
169
55
37
307
340
431
42
68
113
702
911
1,128
485
536
775
1974—Jan..........
Feb.........
Mar.........
Apr.........
May........
June........
July........
Aug.........
Sept.........
Oct..........
Nov........
D ec.*.. ..
2,858
3,260
3,701
3,587
3,683
3,677
3,787
3,521
3,066
2,681
2,953
3,199
2.284
2,624
3,027
2,981
3,051
3,065
3,239
2,958
2,483
2,109
2,355
2,517
59
65
99
60
76
62
74
51
30
25
15
56
365
368
358
339
331
369
341
368
363
331
325
402
149
203
218
209
227
181
133
144
189
216
258
223
1,091
1,229
1,373
1,486
1,442
1,419
1,442
1,437
1,195
1,119
1,283
1,427
772
868
1,029
922
979
926
828
870
864
835
922
905
1975—Jan.*___
3,227
2,519
45
316
348
1,134
1,113
1 Negotiable and other readily transferable foreign obligations payable on demand
or having a contractual maturity of not more than 1 year from the date on which the
obligation was incurred by the foreigner.
2 Data on the 2 lines for this date differ because of changes in reporting coverage.
Figures on the first line are comparable in coverage with those shown for the preceding
date; figures on the second line are comparable with those shown for the following date.
N o t e .—Excludes
deposits and U.S. Treasury securities
held for international and regional organizations. Ear
marked gold is gold held for foreign and international
accounts and is not included in the gold stock of the
United States.
N ote.—Data represent the liquid assets abroad of large nonbanking concerns in
the United States. They are a portion of the total claims on foreigners reported by
nonbanking concerns in the United States and are included in the figures shown in
Table 22.
22. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY
NONBANKING CONCERNS, BY TYPE
(Amount outstanding; in millions of dollars)
Claims
Liabilities
End of period
Total
Payable
in
dollars
Payable
in
foreign
currencies
Total
Payable
in
dollars
Payable in :foreign
currenc ies
Deposits with
banks abroad
in reporter’s
name
Other
1970—Dec......................
2,677
2,182
496
4,160
3,579
234
348
1971—Mar......................
June.....................
2,437
2,375
2,564
J 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
5,000
3,909
4,057
4,186
4,535
4,467
232
303
383
318
289
374
348
326
333
244
1972—Mar......................
June.....................
Sept......................
i
I
\
2,844
2,925
2,933
3,119
3,453
2,407
2,452
2,435
2,635
2,961
437
472
498
484
492
5,173
5,326
5,487
5,721
6,366
4,557
4,685
4,833
5,074
5,699
317
374
426
410
393
300
268
228
237
274
1973—Mar......................
June.....................
Sept......................
Dec.......................
3,375
3,375
3,670
4,080
2,874
2,807
2,971
3,314
502
568
698
765
7,149
7,433
7,788
8,556
6,262
6,574
6,849
7,645
458
499
528
484
429
361
411
428
1974—Mar......................
June.....................
Sept.*...................
4,507
5,188
5,688
3,629
4,173
4,653
878
1,015
1,035
10,570
11,165
10,722
9,643
10,235
9,802
400
420
420
528
510
550
i Data on the 2 lines shown for this date differ
because of changes in reporting coverage. Figures on
the first line are comparable with those shown for the
preceding date; figures on the second line are compa
rable with those shown for the following date.
APRIL 1975 □ INTL. CAPITAL TRANSACTIONS OF THE U.S.
A 73
23. 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
1973
Dec.
Dec.
Claims on foreigners
1974
Mar.
June
Sept.*
1792
1973
1974
Dec.
Dec.
Mar.
June
Sept.*
Europe:
Austria....................................................
Belgium-Luxembourg...........................
Denmark................................................
Finland...................................................
France....................................................
Germany, Fed. Rep. of.........................
Greece....................................................
Italy.......... ...........................................
Netherlands............................................
Norway..................................................
Portugal..................................................
Spain......................................................
Sweden...................................................
Switzerland............................................
Turkey....................................................
United Kingdom...................................
Yugoslavia..............................................
Other Western Europe..........................
Eastern Europe......................................
2
83
7
4
167
164
15
121
109
14
4
81
13
105
4
1,107
7
2
3
3
136
9
7
168
236
40
116
125
9
13
77
48
103
18
932
28
3
31
4
226
17
8
161
238
21
133
114
9
24
68
43
94
26
1,123
31
3
26
12
405
18
9
204
222
28
143
104
8
17
56
52
114
28
1,219
36
6
31
18
485
23
12
192
249
28
150
114
10
20
56
40
105
38
1,405
34
7
78
19
73
29
25
231
195
35
202
84
16
19
157
57
82
48
1,223
12
12
42
17
106
46
44
310
284
51
239
112
18
50
244
71
101
34
1,543
49
15
104
16
153
37
42
413
337
87
330
103
22
112
414
74
90
41
1,835
30
19
79
17
139
27
80
537
345
76
409
126
35
101
420
106
78
46
1,869
41
23
97
15
114
25
91
492
322
69
432
143
32
69
425
97
155
41
1,767
39
20
89
Total................................................
2,013
2,103
2,371
2,712
3,062
2,561
3,437
4,232
4,571
4,438
Canada.......................................................
215
255
320
294
287
965
1,245
1,526
1,573
1,567
Latin America:
Argentina................................................
Bahamas1 ..............................................
Brazil......................................................
Chile........................................................
Colombia................................................
Cuba.......................................................
Mexico....................................................
Panama..................................................
Peru........................................................
Uruguay..................................................
Venezuela...............................................
Other L.A. republics.............................
Neth. Antilles and Surinam.................
Other Latin America.............................
29
391
35
18
7
1
26
18
4
7
21
45
10
4
22
419
64
20
9
*
44
13
15
2
31
51
6
22
18
206
78
6
18
*
72
14
17
3
45
45
5
37
18
307
125
9
22
*
71
19
11
2
36
60
6
59
27
315
160
13
13
*
59
21
15
2
49
63
6
50
79
662
172
34
39
1
181
85
36
4
92
95
13
34
47
633
230
42
40
1
235
120
47
5
134
134
12
214
52
760
409
78
44
1
260
178
65
6
136
172
12
158
52
992
523
64
51
1
263
187
60
5
171
172
16
136
58
516
418
122
49
1
286
195
40
6
189
182
15
159
Total................................................
615
719
564
745
793
1,527
1,892
2,330
2,692
2,236
Other Asia..............................................
32
26
12
7
16
19
224
21
16
5
152
42
34
41
14
14
25
297
37
17
6
178
20
52
24
14
13
31
374
38
9
7
273
39
72
19
13
22
39
374
45
19
7
401
23
72
19
10
38
40
353
66
28
10
430
*
65
33
34
48
31
468
67
59
23
206
11
121
48
37
54
38
888
105
73
28
239
8
184
65
36
51
38
1,212
109
87
31
264
3
119
68
31
67
37
970
124
86
43
313
8
131
61
37
81
53
1,086
123
108
33
309
Total................................................
530
705
855
1,050
1,089
1,035
1,642
2,087
1,860
2,030
Africa:
Egypt......................................................
South Africa..........................................
Zaire.......................................................
Other Africa..........................................
32
8
1
62
10
14
19
125
35
22
21
134
12
24
15
156
6
35
17
114
16
52
8
93
9
62
18
127
9
69
20
155
13
85
17
195
16
90
13
202
104
168
212
206
172
170
216
253
310
321
45
14
118
12
134
22
94
24
128
32
83
23
97
25
110
31
117
39
134
44
59
*
130
*
156
117
160
107
157
178
63
125
1
123
*
142
29
1
1
1
3,536
4,080
4,507
5,188
5,688
6,366
8,556
10,570
11,165
10,772
Asia:
China, People’s Republic of (China
Mainland)...........................................
China, Rep. of (Taiwan).......................
Hong Kong............................................
India.......................................................
Indonesia................................................
Israel.......................................................
Japan......................................................
Korea......................................................
Philippines..............................................
Other countries:
Australia
. •• •••<<«..»
i Includes Bermuda through Dec. 1972.
N ote.—Reported by exporters, importers, and industrial and com
mercial concerns and other nonbanking institutions in the United States.
Data exclude claims held through U.S. banks, and intercompany accounts
between U.S. companies and their foreign affiliates.
A 74
INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1975
24. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS
(A m ounts outstanding; in millions o f dollars)
Claims
Country or area
Total
liabilities
End of period
United
Kingdom
1970—Sept..
D e c ..
1971—Mar..
June.
Sept..
D e c .1
1972—M a r ..
Ju n e.,
Sept..
D e c .1.
1973—M a r ..
June..
Sept..
D ec..
1974— M a r ..
J u n e.
Sept.*
Other
Europe
Canada
Mexico
Other
Latin
America
Japan
Other
Asia
Africa
All
other
2,786
3,102
2,885
2,950
157
146
720
708
620
669
180
183
63
60
586
618
144
140
284
292
73
71
58
64
3,177
3,172
2,939
3,159
3,138
2,983
2,982
3,019
3,118
3,068
154
151
135
128
128
687
672
705
704
670
677
765
761
717
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
3,093
3,300
3,448
3,540
3,631
3,141
3,206
3,187
3,312
3,409
129
108
128
163
191
713
712
695
715
755
737
748
757
775
793
175
188
177
184
187
60
61
63
60
64
665
671
662
658
692
137
161
132
156
134
359
377
390
406
395
81
86
89
87
86
85
93
96
109
111
3,818
3,833
4,066
3,946
3,553
3,622
3,788
3,857
156
179
216
290
814
818
839
782
864
819
836
890
165
146
147
145
63
65
73
79
783
813
822
816
124
130
140
128
410
413
471
342
105
108
108
115
125
131
137
142
3,863
3,549
3,341
4,045
3,965
4,084
368
362
369
756
717
720
927
947
992
194
184
181
81
138
145
796
734
779
123
122
118
469
492
529
119
122
118
147
148
133
1 Data on the 2 lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable
with those shown for the following date.
in reporting coverage. Figures on the first line are comparable with those
25. OPEN MARKET RATES
(Per cent per annum)
United Kingdom
Canada
Month
Treasury Day-tobills,
day
3 months1 money 2
Prime
Treasury
bank
bills,
bills,
3 months
3 months
France
Day-today
money
Clearing
banks’
deposit
rates
Germany,
Fed. Rep. of
Day-to- Treasury
day
bills,
money 3
60-90
days 4
Netherlands
Day-to- Treasury
day
bills,
money 5 3 months
Switzer
land
Day-today
money
Private
discount
rate
1973.......................
1974.......................
5.43
7.63
5.27
7.69
10.45
12.99
9.40
11.36
8.27
9.85
7.96
9.48
8.92
12.87
6.40
6.06
10.18
8.76
4.07
6.90
4.94
8.21
5.09
6.67
1974— Mar.............
Apr.............
May............
June...........
July.............
Aug.............
Sept.............
Oct..............
Nov............
Dec.............
6.24
7.18
8,22
8.66
8.88
8.76
8.70
8.67
7.84
7.29
6.50
6.93
7.48
8.36
8.52
8.83
8.84
8.56
7.86
7.44
14.39
13.20
13.31
12.61
13.21
12.80
12.11
11.95
12.07
12.91
11.95
11.53
11.36
11.23
11.20
11.24
10.91
10.93
10.98
10.99
11.31
10.00
10.72
10.58
8.70
11.11
10.69
10.81
7.70
7.23
9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
9.50
11.88
11.81
12.90
13.59
13.75
13.68
13.41
13.06
12.40
11.88
7.00
5.63
6.63
5.63
5.63
5.63
5.63
5.63
5.63
5.13
11.63
5.33
8.36
8.79
9.13
9.05
9.00
8.88
7.20
8.25
6.00
6.64
7.00
7.00
7.50
7.50
7.42
7.38
6.72
6.69
9.07
9.86
9.00
8.98
8.57
7.09
5.08
7.81
7.00
6.96
6.00
6.50
6.50
6.50
7.00
7.00
7.00
7.00
7.00
7.00
1975—Jan..............
Feb.............
Mar............
6.65
6.34
6.29
6.82
6.88
6.73
11.93
11 .34
10.11
10.59
9.88
9.49
8.40
7.72
7.53
9.30
9.50
8.22
11.20
9.91
9.06
5.13
3.88
7.54
4.04
4.87
6.60
6.56
5.94
6.18
7.33
5.87
7.00
7.00
7.00
1 Based on average yield of weekly tenders during month.
2 Based on weekly averages of daily closing rates.
3 Rate shown is on private securities.
4 Rate in effect at end of month.
5 Monthly averages based on daily quotations.
N ote.—For description and back data, see “International Finance,”
Section 15 of Supplement to Banking and Monetary Statistics , 1962.
NOTES TO TABLES 19a AND 19b ON PAGES A-70 AND A-71, RESPECTIVELY:
1 Cayman Islands included beginning Aug. 1973.
2 Total assets and total liabilities payable in U.S. dollars amounted to
$29,794 million and $30,086 million, respectively, on Jan. 31, 1975.
N ote.—Components may not add to totals due to rounding.
For a given month, total assets may not equal total liabilities because
some branches do not adjust the parent’s equity in the branch to reflect
unrealized paper profits and paper losses caused by changes in exchange
rates, which are used to convert foreign currency values into equivalent
dollar values.
APRIL 1975 □ CENTRAL BANK AND EXCHANGE RATES
A 75
26. CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS
(Per cent per annum)
Rate as o f Mar. 31, 1975
Rate as o f Mar. 31, 1975
Country
Country
Per
cent
Month
effective
Per
cent
Month
effective
Argentina......................
Austria...........................
Belgium.........................
Brazil.............................
18.0
6.50
7.5
18.0
Feb.
May
Mar.
Feb.
1972
1974
1975
1972
Italy...................
Japan.................
Mexico...............
Netherlands.......
8.0
9.0
4.5
6.0
Dec.
Dec.
June
Mar.
1974
1973
1942
1975
Canada...........................
Denmark.......................
France...........................
Germany, Fed. Rep. of,
8.25
9.0
11 .0
5.0
Jan.
Jan.
Feb.
Mar.
1975
1975
1975
1975
Norway..............
Sweden..............
Switzerland........
United Kingdom
Venezuela..........
5.5
7.0
5.0
10.0
5.0
Mar.
Aug.
Feb.
Mar.
Oct.
1974
1974
1975
1975
1970
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 of its credit operations. Other rates for some of
these countries follow:
Argentina—3 and 5 per cent for certain rural and industrial paper, de
pending on type of transaction;
Brazil—8 per cent for secured paper and 4 per cent for certain agricultural
paper;
Japan—Penalty rates (exceeding the basic rate shown) for borromings
from the central bank in excess of an individual bank’s quota;
United Kingdom—The Bank’s minimum lending rate, which is the
average rate of discount for Treasury bills established at the most recent
tender plus one-half per cent rounded to the nearest one-quarter per cent
above.
Venezuela—2 per cent for rediscounts of certain agricultural paper, 4 Vi
per cent for advances against government bonds, and 5l/ i per cent for
rediscounts of certain industrial paper and on advances against promissory
notes or securities of first-class Venezuelan companies.
27. FOREIGN EXCHANGE RATES
(In cents per unit of foreign currency)
Canada
(dollar)
Austria
(schilling)
Belgium
(franc)
1971.....................
1972.....................
1973.....................
1974....................
113.61
119.23
141.94
143.89
4.0009
4.3228
5.1649
5.3564
2.0598
2.2716
2.5761
2.5713
99.021
100.937
99.977
102.257
13.508
14.384
16.603
16.442
18.148
19.825
22.536
20.805
28.768
31.364
37.758
38.723
13.338
13.246
12.071
12.460
244.42
250.08
245.10
234.03
.16174
.17132
.17192
.15372
.28779
.32995
.36915
.34302
1974—Mar..........
Apr...........
July..........
Aug..........
Sept..........
Oct...........
Nov..........
Dec..........
148.55
148.41
148.44
148.34
147.99
148.24
144.87
130.92
131.10
131.72
5.1605
5.3345
5.5655
5.5085
5.4973
5.3909
5.2975
5.4068
5.5511
5.7176
2.5040
2.5686
2.6559
2.6366
2.6378
2.5815
2.5364
2.5939
2.6529
2.7158
102.877
103.356
103.916
103.481
102.424
102.053
101.384
101.727
101.280
101.192
16.031
16.496
17.012
16.754
16.858
16.547
16.111
16.592
16.997
17.315
20.742
20.541
20.540
20.408
20.984
20.912
20.831
21.131
21.384
22.109
38.211
39.594
40.635
39.603
39.174
38.197
37.580
38.571
39.836
40.816
12.415
12.711
12.841
12.735
12.759
12.525
12.316
12.416
12.397
12.352
234.06
238.86
241.37
239.02
238.96
234.56
231.65
233.29
232.52
232.94
.15687
.15720
.15808
.15379
.15522
.15269
.15103
.14992
.14996
.15179
.35454
.36001
.35847
.35340
.34372
.33082
.33439
.33404
.33325
.33288
1975—Jan...........
Feb...........
Mar..........
132.95
134.80
135.85
5.9477
6.0400
6.0648
2.8190
2.8753
2.9083
100.526
99.957
99.954
17.816
18.064
18.397
22.893
23.390
23.804
42.292
42.981
43.120
12.300
12.550
12.900
236.23
239.58
241.80
.15504
.15678
.15842
.33370
.34294
.34731
Nether
lands
(guilder)
New
Zealand
(dollar)
Norway
(krone)
Portugal
(escudo)
Switzer
land
(franc)
United
Kingdom
(pound)
Period
Malaysia
(dollar)
Mexico
(peso)
Denmark
(krone)
France
(franc)
Australia
(dollar)
Period
Germany
(Deutsche
mark)
South
Africa
(rand)
India
(rupee)
Spain
(peseta)
Ireland
(pound)
Sweden
(krona)
Italy
(lira)
Japan
(yen)
1971.....................
1972.....................
1973.....................
1974.....................
32.989
35.610
40.988
41.682
8.0056
8.0000
8.0000
8.0000
28.650
31.153
35.977
37.267
113.71
119.35
136.04
140.02
14.205
15.180
17.406
18.119
3.5456
3.7023
4.1080
3.9506
140.29
129.43
143.88
146.98
1.4383
1.5559
1.7178
1.7337
19.592
21.022
22.970
22.563
24.325
26.193
31.700
33.688
244.42
250.08
245.10
234.03
1974— M ar.........
Apr...........
May.........
June.........
July..........
Aug..........
Sept.........
Oct...........
Nov..........
Dec..........
41.152
41.959
42.155
41.586
41.471
42.780
41.443
41.560
43.075
42.431
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
8.0000
36.354
37.416
38.509
37.757
38.043
37.419
36.870
37.639
38.438
39.331
143.40
145.12
146.07
145.29
145.15
143.73
139.64
129.95
130.42
130.56
17.734
18.170
18.771
18.410
18.519
18.246
17.993
18.165
18.404
18.873
3.9519
4.0232
4.1036
4.0160
3.9886
3.9277
3.8565
3.9246
3.9911
4.0400
148.88
148.85
148.78
148.86
149.73
146.83
142.69
142.75
143.88
144.70
1.6927
1.7080
1.7409
1.7450
1.7525
1.7466
1.7339
1.7422
1.7522
1.7716
21.915
22.730
23.388
22.885
22.861
22.597
22.333
22.683
23.175
23.897
32.490
33.044
34.288
33.449
33.739
33.509
33.371
34.528
36.384
38.442
234.06
238.86
241.37
239.02
238.96
234.56
231.65
233.29
232.52
232.94
1975—Jan...........
Feb...........
Mar..........
43.359
44.136
44.582
8.0000
8.0000
8.0000
40.715
41.582
42.124
131.72
133.30
134.31
19.579
19.977
20.357
4.0855
4.1139
4.1276
145.05
147.16
148.70
1.7800
1.7784
1.7907
24.750
25.149
25.481
39.571
40.450
40.273
236.23
239.58
241.80
Note.—Averages of certified noon buying rates in New York for cable
transfers. For description of rates and back data, see “International Fi
nance,” Section 15 of Supplement to Banking and Monetary Statistics , 1962.
A 76
BANKS AND BRANCHES □ APRIL 1975
NUMBER IN OPERATION ON DECEMBER 31, 1974
Commercial and mutual savings banks
Commercial
Total
Member
Nonmember
Total
Na
tional
United States2..........
293
293
25
262
198
25
262
324
139
324
12
Colorado..................
Connecticut..............
Delaware..................
District of Columbia
Florida.....................
10
198
93
5
3
74
55
20
16
716
71
18
16
716
127
24
5
13
282
447
447
64
24
1,203
12
24
1,203
410
2
6
Iowa.........................
Kansas......................
Kentucky.................
Louisiana.................
Maine.......................
665
613
342
249
81
665
Maryland.................
Massachusetts..........
Michigan..................
Minnesota................
Mississippi...............
117
12
414
613
342
249
49
130
131
54
45
68
119
44
41
106
41
52
9
14
21
21
2
11
18
30
7
25
71
10
10
68
2
12
2
11
14
98
397
370
10
2
7
. . . ..
65
4
7
25
248
165
158
36
20
7
7
181
53
107
22
165
158
58
47
41
51
39
16
7
13
93
28
77
124
248
28
128
6
39
13
69
44
6
80
228
248
29
128
32
65
92
39
67
56
136
512
136
33
4
14
91
110
65
44
519
53
319
3
32
222
222
42
3
33
3
31
25
5
23
7
70
73
35
47
63
20
9
3
40
78
117
218
77
304
92
171
122
Ohio.........................
Oklahoma.................
Oregon.....................
Pennsylvania............
Rhode Island............
498
460
50
414
219
193
22
498
460
49
406
16
South Carolina........
South D akota..........
Tennessee.................
Texas...............
U tah .........................
91
158
337
1,313
55
91
158
337
1,313
55
18
31
75
569
Vermont...................
Virginia.....................
Washington..............
West Virginia...........
Wisconsin.................
40
288
17
109
23
214
628
34
288
93
214
625
Wyoming.................
Puerto Rico.............
Virgin Islands..........
74
202
55
121
4
47
34
154
26
43
8
11
8
1
1
2
101
159
13
62
7
56
1
1
33
4
121
3
112
165
247
39
134
9
2
5
2
15
250
5
6
27
15
38
5
67
100
7
2
20
119
2
1
1
1
102
21
29
114
5
56
326
90
31
270
19
326
90
30
263
13
169
51
7
155
5
63
45
63
45
16
128
16
114
59
85
459
30
194
60
26
195
74
44
1
1
1
1
17
92
20
200
22
15
111
1
1
64
3
155
5
28
3
13
46
26
28
47
41
93
36
23
98
6
43
25
130
81
11
62
2
5
12
26
194
52
26
195
12
14
71
33
91
16
13
43
32
3
3
10
96
86
92
20
'"i
17
169
60
204
71
58
200
100
13
62
7
45
12
96
150
2
12
184
60
318
71
58
244
699
38
11
101
258
2
248
47
27
20
2
1
5
93
83
20
75
511
414
250
188
6
99
171
80
52
121
238
77
423
92
171
130
131
57
5
6
6
81
119
420
New Jersey...............
New Mexico.............
New Y ork................
North Carolina........
North D akota..........
For notes see opposite page.
488 2,662
129
9
47
700
153
453
1
1
160 5,477 5,123 1,953
204
9
13
186
227
700
153
453
101
319
204
9
13
186
228
Missouri...................
Montana...................
Nebraska..................
Nevada.....................
New Hampshire
8
237
Mutual
savings
Non
Non
In
in
In
in
sured sured sured sured
Na
tional
129
14
692
236
319
347
746
181
82
Nonmember
181
5
13
175
123
4
71
51
114
152
347
745
181
8
111
19
Commercial
Mutual
savings
Non
Non
In
in
in
In
sured sured sured sured
14,936 14,457 4,710 1,072 8,438
Alabama...................
Alaska.......................
Arizona.....................
Arkansas...................
California.................
Georgia.....................
Hawaii......................
Idaho........................
Illinois.......................
Indiana.....................
State
Number maintaining branches or additional offices1
10
142
15
114
APRIL 1975 □ BANKS AND BRANCHES
A 77
NUMBER IN OPERATION ON DECEMBER 31, 1974—Continued
Branches and additional offices 1
Class o f bank
Commercial banks
State
Member
Total
Nonmember
Total
United States2..........
Mutual
savings
banks
Na
tional
State
In
sured
Non
in
sured
In
sured
Non
in
sured
29,886 28,244 15,585
4,202
8,409
48
1,387
255
19
126
11
133
118
489
In
head
office
city
Outside head office city
In
head
office
county
In
In non
contig contig
uous
uous
counties counties
Bank
ing
facili
ties 3
10,304
9,213
5,415
4,954
197
220
25
135
173
469
159
5
112
100
483
17
20
52
5
707
16
27
124
1
1,800
5
5
2
2
32
41
180
33
125
100
1
362
65
203
44
29
10
260
132
30
81
349
314
52
18
185
445
201
38
12
1
397
39
9
78
40
31
270
65
198
273
120
184
125
284
316
68
147
1
180
211
138
5
10
103
3
13
336
490
694
16
212
87
167
484
2
17
272
224
296
14
270
178
533
640
33
195
177
643
563
233
8
262
149
1
11
137
82
85
259
13
82
105
99
51
3
44
74
78
31
5
1
15
2
177
5
37
16
19
213
12
82
29
51
44
1,422
189
3,665
1,547
78
1,329
189
3,084
1,547
78
916
101
1,541
760
16
208
14
1,366
1
2
205
74
168
776
58
306
117
1,553
208
18
723
62
984
132
37
O hio.........................
Oklahoma................
Oregon.....................
Pennsylvania............
Rhode Island...........
1,610
91
424
2,334
274
1,610
91
420
2,188
213
941
52
290
1,325
113
393
3
276
36
130
675
90
691
91
89
292
60
886
31
65
872
116
72
1,169
65
198
1
33
South Carolina........
South D akota..........
Tennessee.................
Texas........................
U tah.........................
578
115
725
105
183
578
115
725
105
183
288
69
352
2
93
9
13
46
11
36
281
33
326
92
54
111
23
444
104
33
67
31
266
1
55
68
26
7
332
35
25
70
1
18
3
Vermont...................
Virginia....................
Washington..............
West Virginia..........
Wisconsin.................
138
1,099
743
26
325
131
1,099
657
26
325
46
624
503
13
81
208
36
3
22
85
267
118
10
222
22
337
253
24
67
48
205
193
2
208
40
354
110
28
203
187
13
4
Alabama...................
Alaska......................
Arizona....................
Arkansas..................
California.................
412
77
423
279
3,459
412
76
423
279
3,459
267
65
264
144
2,646
Colorado..................
Connecticut..............
Delaware.................
District of Columbia
Florida.....................
42
774
152
125
104
42
547
130
125
104
22
251
4
86
25
2
80
Georgia.....................
Hawaii.....................
Idaho........................
Illinois......................
Indiana.....................
645
145
190
186
842
645
145
190
186
841
311
10
154
93
440
74
6
12
52
Iow a.........................
Kansas.....................
Kentucky.................
Louisiana.................
Maine.......................
385
126
469
540
322
385
126
469
540
275
76
52
193
227
124
Maryland.................
Massachusetts..........
Michigan.................
Minnesota................
Mississippi...............
737
1,185
1,476
33
499
695
884
1,476
32
499
Missouri...................
Montana...................
Nebraska.................
Nevada.....................
New Hampshire. . . .
259
13
82
105
121
New Jersey...............
New Mexico............
New Y ork................
North Carolina........
North D akota..........
Wyoming.................
Virgin Islands..........
1
7
26
17
318
18
216
126
10
77
1
7
1 Excludes banks that have banking facilities only; banking facilities
are shown separately; see note 3.
2 Includes 1 national bank in Puerto Rico and 1 in the Virgin Islands,
with 7 branches that became members of the F.R. System in 1973 and
1957, respectively.
3 Banking facilities (other than branches) that are provided at military
and other Govt, establishments through arrangements made by the
Treasury; they are operated by 134 banks, 42 of which have no other type
of branch or additional office.
1
227
22
255
22
93
581
4
146
61
86
83
51
126
1
17
11
6
1
7
1
54
21
58
42
280
9
272
22
113
1
230
935
1
49
1
2
N o t e .— 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, haa 2 branches in Wash, and 1 in Ore., 1 nonin
sured (unincorporated) bank in N .Y . has 1 branch in Mass. and 1 in Pa.,
and 3 insured nonmember banks in Puerto Rico have 19 branches in N.Y.
In the table these branches are shown acording to their own location rather
than that of the parent bank.
A 78
WEEKLY REPORTING BANKS □ APRIL 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974
(In millions of dollars)
Loans
Federal funds sold, etc.1
Wednesday
Other
To brokers
and dealers
involving—
Total
loans
and
invest
ments
To
com
mer
cial
banks
Total
U.S.
Treas
ury
se
curi
ties
Other
se
curi
ties
For purchasing
or carrying securities
To
others
Total
Com
mer
cial
and
indus
trial
Agri
cul
tural
To brokers
and dealers
U.S.
Treas
ury
secs.
To nonbank
finan.
institutions
To
others
Other
secs.
U.S.
Treas
ury
secs.
Other
secs.
Pers.
and
sales
finan.
COS.,
etc.
Other
Jan.
2..........
9 .........
16..........
23..........
30..........
379,628
373,644
372,236
369,178
369,660
19,908
16,393
15,834
13,981
15,702
18,026
13,950
14,027
12,612
14,275
969
1 ,911
1 ,105
843
927
683
350
549
352
299
230
182
153
174
201
272,736
269,689
269,264
267,962
266,872
111,047
110,467
110,484
109,906
109,724
3,676
3,690
3,694
3,723
3,726
816
1 ,488
844
852
601
5,669
5,161
5,185
4,764
4,601
156
159
151
161
157
2,772
2,745
2,747
2,750
2,736
9,443
8,533
8,708
8,360
8,130
18,609
17,988
18,146
18,186
18,154
Feb.
6 ..........
13..........
20.........
27.........
371,407
370,362
371,190
372,059
16,030
16,725
16,659
16,414
14,046
15,093
15,089
14,597
1 ,340
1 ,035
984
1 ,216
415
394
353
366
229
203
233
235
268,055
267,640
267,577
268,739
109,986
110,149
110,142
110,707
3,739
3,733
3,732
3,744
1 ,159
731
586
989
5,025
4,804
4,986
5,271
155
151
148
151
2,731
2,744
2,740
2,743
8,106
7,911
7,931
8,128
18,017
18,129
18,213
18,156
Mar.
6.......... 375,493 16,805 15,093
13.......... 374,813 15,597 14,020
20.......... 375,540 15,016 13,492
27.......... 378,094 15,447 13,623
1 ,123
1 ,050
993
1,210
342
311
303
313
247
216
228
301
270,354
270,610
273,354
275,815
111,725
112,702
114,739
115,953
3,776
3,792
3,784
3,778
1 ,057
591
575
656
5,135
4,898
4,747
4,642
148
145
141
141
2,753
2,777
2,767
2,770
8,293
8,397
8,457
8,665
18,133
18,359
18,400
18,583
Apr.
3.......... 384,367 16,688 15,172
10.......... 385,133 16,440 15,003
17
386,531 15,633 14,155
24
382,529 14,936 13,495
937
891
867
857
355
237
271
207
224
309
340
377
280,449
281,091
284,031
282,274
118,477
118,926
120,453
119,795
3,795
3,790
3,788
3,807
726
857
770
481
4,557
4,731
4,756
4,433
138
138
134
133
2,772
2,753
2,787
2,770
9,088
8,950
9,406
8,922
19,086
19,263
19,647
19,538
May
1..........
8
15
22
29 .
388,378
385,349
386,476
385,669
385,201
16,559
15,089
15,719
15,661
15,268
14,964
13,514
14,019
12,702
13,401
956
938
974
1 ,924
1,025
271
262
342
464
402
368
375
384
571
440
286,801
284,996
285,881
286,039
286,180
121,332
121,444
121,503
121,041
120,913
3,804
3,803
3,815
3,812
3,835
434
334
392
1,052
336
5,078
4,586
4,739
4,771
4,735
124
125
118
134
123
2,781
2,769
2,755
2,767
2,733
9,634
9,351
9,183
8,989
9,442
20,105
19,940
20,178
20,136
20,253
June
5..........
12
19. ,
26.
390,965
390,055
390,569
391,779
18,836
16,972
15,321
16,187
15,454
13,913
13,213
14,070
2,014
1 ,985
905
932
686
512
581
552
682
562
622
633
287,657
287,451
290,510
291,481
120,766
121,519
123,004
123,612
3,821
3,834
3,962
3,950
1,542
602
674
511
4,933
5,002
5,102
4,699
126
130
130
128
2,694
2,689
2,667
2,670
9,461
9,321
9,906
9,867
20,410
20,312
20,807
20,928
July
3..
394,699 16,326
10
393,974 16,038
17.......... 393,409 14,930
24.......... 389,976 12,800
31
397,781 16,527
14,308
14,177
13,003
10,971
13,418
1,039
918
1 ,071
935
1 ,881
495
482
402
406
581
484
461
454
488
647
294,749
294,955
295,938
294,567
297,975
125,614
125,813
126,581
126,158
126,143
3,924
3,922
3,942
3,908
3,928
418
462
493
421
1 ,726
4,440
3,994
3,886
4,008
4,696
122
120
108
111
113
2,682 9,979 21,379
2,669 10,089 21,618
2,670 10,230 21,580
2,664 9,844 21,423
2,677 10,215 21,648
Aug.
7..........
14
21
28
397,822
395,361
393,575
397,242
16,646
15,466
14,686
16,525
13,558
13,113
12,368
12,021
1 ,962
1,229
1 ,334
3,193
437
450
401
428
689
674
583
883
297,529
296,465
296,071
297,819
126,427
126,521
126,880
126,771
3,926
3,911
3,922
3,893
1,457
1,059
634
2,111
4,379
4,275
3,783
3,885
111
109
104
102
2,696 10,190 21 ,710
2,679 9,956 21,736
2,672 9,894 21 ,812
2,690 9,852 21,894
Sep.
4
11
18..........
25..........
397,698
401,011
399,635
395,413
15,987
17,171
16,473
15,419
13,468
13,932
12,254
11,995
1,446
1,782
2,637
1,859
406
669
779
750
667
788
803
815
298,419
299,880
300,343
298,052
127,466
127,978
128,668
128,407
3,879
3,859
3,830
3,803
567
1,958
1,445
947
3,838
4,390
4,470
3,812
97
93
94
95
2,673 10,295 21,848
2,649 10,202 21,929
2,656 10,187 22,173
2,642 9,900 21,902
Oct.
2
9, ,
16
23
30
398,212
401,346
399,288
394,150
394,981
16,938
19,550
18,515
15,493
16,243
13,834
14,057
14,723
12,541
12,929
1 ,300
3,556
2,059
1,240
1,820
889
836
773
744
696
915
1,101
960
968
798
299,353
299,397
298,201
296,913
296,631
128,827
128,529
129,032
128,323
128,328
3,771
3,754
3,739
3,751
3,759
898
2,500
618
1 ,324
966
3,707
4,007
3,454
3,370
3,735
101
91
92
94
94
2,629 10,217 22,069
2,634 9,707 21,888
2,629 9,992 21,955
2,614 9,684 21,710
2,613 9,883 21,525
Nov. 6..........
13
20
27
399,607
403,173
400,512
399,890
18,050
19,800
17,426
17,473
15,035
15,914
14,258
14,340
1,409
2,344
1,432
1,398
774
741
920
885
832
801
816
850
298,241
298,960
298,730
298,712
129,300
129,147
129,208
129,798
3,733
3,711
3,718
3,683
828
1 ,742
1,946
633
4,043
3,828
3,776
4,101
92
91
86
94
2,614 10,140 21,718
2,622 9,904 21 ,686
2,611 9,980 21,696
2,587 10,250 21,624
Dec.
406,133
405,609
407,992
406,253
410,229
19,979
18,877
18,129
17,693
20,275
15,172
15,357
14,563
14,107
15,899
2,660
1,519
1,411
1,309
1,937
1,178
1,169
1 ,328
1,437
1,401
969
832
827
840
1,038
301,397
300,334
302,395
301,522
303,129
130,278
130,430
131,527
131,386
131,875
3,653
3,642
3,623
3,602
3,650
2,251
1,060
981
772
784
4,331
4,248
4,293
3,673
4,185
86
84
82
86
91
2,595
2,569
2,559
2,582
2,563
10,464
10,615
11,153
11,051
10,978
21 ,559
21,827
21,915
21,763
22,098
-1 ,142
1
1
-823
-320
2
3
10
-2 6
-1 9
-192
4 . ........
11..........
18
25
31
Dec. 31 ,
For notes see p. A-82.
APRIL 1975 □ WEEKLY REPORTING BANKS
A 79
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974— Continued
(In m illions o f dollars)
Loans (cont.)
Investments
Other (cont.)
U.S. Treasury securities
To commercial
banks
Real
estate
Do
mes
tic
For
eign
Notes and bonds
maturing—
Con
sumer
instal
ment
Wednesday
For
eign
govts.2
All
other
Total
Bills
Certif
icates
Within
1 yr.
1 to
5 yrs.
After
5 yrs.
55,359
55,369
55,654
55,725
55,798
4,073
4,242
4.060
4.060
3,898
5,098
5,021
4,937
4,819
4,637
33,243
33,202
33,212
33,191
33,232
1,590
1,534
1,483
1,524
1,582
21.185
20,090
19.959
19,941
19,896
25,461
25,956
26,071
26,230
25,691
5,529
5,913
6,265
6,374
5,859
4,422
4,588
4,661
4,695
4,673
12,071
11,976
11,744
11,768
11,771
3,439
3,479
3,401
3,393
3,388
55,859
55,889
55,942
55,905
3,900
3,597
3,627
3,693
4,843
4,807
4,705
4,714
33,247
33,216
33,187
33,214
1,455
1,490
1,380
1,438
19,833
20,289
20,258
19,886
25,527
25,236
25,616
25,329
5,809
5,635
4,936
4,837
4,690
4,732
4,252
4,262
11,701
11,630
12,242
12,111
3,327
3,239
4,186 ............................................ 20
4,119 ............................................ 27
55,925
56,060
56,261
56,307
3,670
3,592
3,758
3,766
4,975
4,958
5,496
5,863
33,153
33,138
33,105
33,166
1,468
1,466
1.578
1,650
20.143
19,735
19,546
19,875
25,995
25,730
24,869
24,829
5,440
5.278
4,601
4,649
4,338
4,346
4,387
4,278
11,993
11,920
11,772
11,769
4,224
4,186 .............................................13
4,109 .............................................20
4,133
56,257
56,349
56,571
56,716
3,928
3,859
3,803
3,977
6,234
6,345
6,212
6,352
33,179
33,226
33,286
33,267
1,747
1,752
1,866
1.895
20,465
20,152
20,552
20,188
25.339
25,694
24,784
23,419
5,166
5,195
4,439
3.202
4,273
4,306
4,222
4,192
11,920
12,192
12,094
12,031
3,980
4,001 .............................................10
4,029
3,994 .............................................24
56,905
57,008
57,322
57,478
57,616
4,141
4,006
3,979
4,049
4,060
6,364
6,205
6,186
6,452
6,323
33,225
33,249
33,326
33,408
33.501
1,873
1,839
1,900
1.877
1 ,f
21,001
20,337
20,485
20,073
20,412
22,960
22,847
22,262
22,186
21,850
2,690
2,669
2,349
2,400
2,120
4,284
4,282
3,361
3,691
3,585
11,954
11,910
12,545
12,176
12,253
4,032
3,986 ............................................. 8
4,007 .............................................15
3,919
3,892 .............................................29
57,694
57,923
58,195
58,296
4,013
3,978
3,857
3,959
6,452
6,225
6,275
6,401
33,565
33,676
33,797
33,923
1,859
1,832
1,881
1,966
20,321
20,408
20,253
20,571
22,316
22,123
21,801
20,984
2,727
2,485
2,218
1,531
3,665
3,764
3,728
3,666
11,949
11,882
11,885
11,845
3,975
3,992
3,970
3,942 .............................................26
58,411
58,526
58,710
58,833
59,008
3,971
4,029
4,116
4,036
3,924
6,690
6,996
6,874
6,859
6,979
34,119
34,137
34,197
34,279
34,420
2,040
2,117
2,022
1,837
1.878
20.960
20,463
20,529
20.186
20,620
20,874
20,350
20,182
19,944
20,914
1,749
1.279
1,320
1,052
2,047
3,590
3,552
3,495
3,563
3,557
11,724
11,708
11,614
11,565
11,562
3,811
3,811 .............................................10
3,753
3,764 .............................................24
3,748
58,985
59,242
59,426
59,510
3,865
3,911
3,752
3,704
6,877
6,725
6,808
6,871
34.502
34,560
34,610
34,766
2,075
1,875
1.895
1,656
20,329
19,906
19,879
20,114
21,284
21,426
20,976
21,130
2,458
2,545
2,114
2,328
3,538
3,644
3,440
3,615
11,519
11,446
11,164
10,900
3,769
3,791
4,258
4,287 .............................................28
59,529
59,642
59,775
59,855
3,828
3,635
3,677
3,566
6,906
6,857
6,755
6,526
34,849
34,899
34,965
35,069
1,680
1,621
1,639
1.579
20,964
20,168
20,009
19,949
21,268
21,782
20,876
20,069
2,632
3.202
2.472
1,771
3,831
3,819
3,737
3,722
10,709
10,701
10,636
10,610
4,096
4,060
4,031
3,966 .............................................25
59,840
59,831
59,931
60.056
60.056
3,591
3,509
3,362
3,335
3,289
6,343
6,338
6,566
6,010
6,068
35,159
35,149
35,077
35,037
35,089
1,643
1,636
1,611
1,626
1,627
20,558
19,824
20.143
19,979
19,599
19,766
20,104
20,553
20,373
20,522
1,224
1,551
2,032
1,996
2,174
3,691
3,643
3,624
3,617
3,658
10,939
10,927
10,903
10,718
10,684
3,912
3,983
3,994 .............................................16
4,042 ............................................ 23
4,006 .............................................30
60,041
60,147
60,215
60,116
3,236
3,265
3,202
3,327
5,994
6,083
6,149
6,171
35,170
35,026
34,969
35,006
1,568
1,598
1,618
1,622
19,764
19,556
19,700
21,605
21,948
22,724
21,951
2,978
3.473
3,310
2,754
3,799
3,656
3,562
3,469
10,876
10,868
11,804
11,896
3,952
3,951 .............................................13
4,048 .............................................20
3,832 .............................................27
60,137
60,194
60,178
60,225
60,442
3,261
3,293
3,372
3,304
3,187
6,262
6,236
6,264
6,312
6,378
34,902
34,937
34,964
35,014
34,834
1,570
1,611
1,515
1,458
1,487
20,048
19,588
19,969
20,294
20,577
23,002
23,671
24,059
23,863
23,931
3,692
4,412
4,993
4,846
4,519
3,529
3,538
3,533
3,531
3,611
11,867
11,840
11,733
11,716
12,196
3,914
3,881
3,800
3,770
3,605
-2 5 4
-6 8
-2 5
117
-5 1
64
177
-2 0
6
For notes see p. A-82.
20,110
.................................. Jan. 2
............................................ 9
.............................................16
.............................................23
.............................................30
.............................................11
.............................................18
.............................................25
.............................................31
-9 9 .................................. Dec. 31 4
A 80
W EEKLY
R E P O R T IN G
A SSETS AND
BANKS
□ A P R IL 1975
L IA BILITIES O F LARGE C O M M E R C IA L B A N K S , 1974— C o n t in u e d
(In millions of dollars)
Investments (cont.)
Other securit ies
Wednesday
Total
Obligations
of State
and
political
subdivisions
Other bonds,
corp. stock,
and
securities
Cash
Re
items
serves
in
process with
of
F.R.
collec Banks
tion
Cur
rency
and
coin
Bal
ances
with
do
mestic
banks
Invest
ments
in sub
sidiar Other
ies not assets
consol
idated
Total
assets/
Total
liabil
ities
Certif.
Tax
of
All
All
war
rants3 other partici others
pation4
Jan. 2
9........................
23........................
30........................
Feb. 6........................
13........................
20........................
27........................
Mar. 6........................
13........................
27........................
Apr. 3........................
10........................
17........................
24........................
May 1........................
8........................
15........................
22........................
29........................
June
12........................
July 3........................
10........................
24........................
31........................
Aug.
14........................
21........................
28........................
Sept. 4........................
11........................
18........................
25........................
Oct. 2........................
23........................
30........................
Nov. 6........................
27........................
Dec. 4........................
11........................
Dec. 31........................
For notes see p. A-82.
61,523
61,606
61,067
61,005
61,395
61,795
60,761
61,338
61,577
62,339
62,876
62,301
62,003
61,891
61,908
62,083
61,900
62,058
62,417
62,614
61,783
61,903
62,156
63,509
62,937
63,127
62,750
62,631
62,359
62,665
62,365
62,363
62,004
61,842
61,768
62,024
62,178
61,943
61,873
62,155
62,295
62,019
61,371
61,585
61,711
62,465
61,632
61,754
61,755
62,727
63,409
63,175
62,894
-384
7,765
7,793
7,459
7,287
7,472
7,637
7,191
7,250
7,178
7,529
7,822
7,600
7,400
7,356
7,510
7,656
7,544
7,621
7,680
7,801
7,490
7,483
7,505
8,007
7,511
7,384
7,255
7,048
6,968
7,060
6,978
6,874
6,770
6,562
6,508
6,665
6,672
6,601
6,561
6,899
6,963
6,764
6,324
6,254
6,498
6,784
6,515
6,422
6,560
6,907
6,861
6,733
6,549
21
40,080
40,232
40,099
40,174
40,394
40,520
40,108
40,356
40,670
41,136
41,123
40,901
40,942
40,981
40,881
41,026
41,028
40,939
41,393
41,338
40,995
40,905
40,931
41,405
41,332
41,311
41,205
41,428
41,350
41,419
41,144
41,354
41,152
41,192
41,072
41,188
41,103
41,043
40,819
40,888
41,127
41,090
40,818
40,799
40,826
41,233
40,755
40,874
40,622
41,025
41,528
41,278
41,240
-193
2,431
2,400
2,374
2,370
2,393
2,454
2,418
2,434
2,417
2,433
2,532
2,541
2,463
2,443
2,438
2,443
2,417
2,392
2,385
2,433
2,384
2,394
2,397
2,508
2,519
2,525
2,512
2,385
2,377
2,419
2,493
2,516
2,542
2,539
2,541
2,539
2,603
2,557
2,616
2,431
2,494
2,447
2,456
2,582
2,541
2,521
2,509
2,539
2,606
2,584
2,558
2,596
2,570
-158
11,247
11,181
11,135
11,174
11,136
11,184
11,044
11,298
11,312
11,241
11,399
11,259
11,198
11,111
11,079
10,958
10,911
11,106
10,959
11,042
10,914
11,121
11,323
11,589
11,575
11,907
11,778
11,770
11,664
11,767
11,750
11,619
11,540
11,549
11,647
11,632
11,800
11,742
11,877
11,937
11,711
11,718
11,773
11,950
11,846
11,927
11,853
11,919
11,967
12,211
12,462
12,568
12,535
-54
39,584
32,447
34,685
29,979
30,161
31,677
37,855
38,014
31,481
33,386
32,843
32,900
32,860
33,262
32,794
35,297
29,510
35,144
30,498
36,430
31,397
35,679
32,299
32,446
32,243
31,909
36,811
31,247
33,180
31,874
35,192
30,128
31,066
29,080
30,011
37,602
32,897
31,479
31,307
33,872
29,963
42,009
33,616
33,857
38,780
38,139
32,196
37,868
33,788
33,648
34,481
35,245
41,956
113
25,685
22,606
25,158
24,096
23,753
21,644
24,102
23,935
21,251
21,939
23,145
22,992
21,159
20,994
21,499
22,205
21,945
22,283
22,897
24,226
19,902
26,076
21,271
24,666
21,214
22,880
23,874
23,899
25,660
26,683
20,314
23,040
23,656
24,950
20,482
25,671
22,681
21,833
25,124
24,163
20,139
27,592
24,425
23,873
25,306
21,313
24,098
24,798
19,483
24,015
25,564
24,369
19,653
29
5,030
4,681
4,529
4,563
4,501
4,016
4,366
4,467
4,459
3,966
4,341
4,300
4,422
4,037
4,221
4,493
4,543
4,270
4,131
4,370
4,453
4,693
4,052
4,494
4,566
4,684
3,911
4,558
4,515
4,591
4,489
4,143
4,474
4,502
4,721
4,350
4,711
4,709
4,756
4,394
4,448
4,628
4,752
4,865
4,258
4,803
4,764
4,482
4,525
4,971
4,996
4,886
5,410
6
12,455
12,222
12,341
11,940
11,950
11,891
13,788
12,924
11,621
11,843
11,417
12,389
12,384
12,812
12,695
12,838
11,747
10,467
11,239
12,979
12,865
12,339
12,134
10,526
11,076
10,994
10,045
10,041
11,149
10,253
11,466
10,020
9,909
9,654
10,624
11,563
11,187
10,955
10,695
10,485
10,505
11,918
10,703
11,178
11,957
11,572
11,059
11,260
11,809
11,191
11,182
11,268
16,445
-10
1,435
1,439
1,440
1,440
1,443
1,429
1,426
1,429
1,429
1,446
1,449
1,465
1,464
1,477
1,480
1,495
1,519
1,530
1,557
1,566
1,574
1,581
1,603
1,586
1,602
1,694
1,609
1,607
1,602
1,573
1,594
1,596
1,598
1,610
1,639
1,626
1,616
1,628
1,590
1,642
1,622
1,585
1,600
1,605
1,610
1,629
1,638
1,599
1,604
1,630
1,648
1,647
1,699
-15
22,343
20,622
20,328
20,116
20,724
21,188
21,354
21,605
21,708
22,013
22,270
22,357
22,649
23,188
22,903
23,156
23,285
23,968
23,758
23,934
23,493
24,230
24,875
25,001
24,336
25,084
26,451
26,516
26,091
26,875
28,772
28,385
28,319
27,562
27,894
29,230
29,163
28,678
29,530
30,432
29,964
29,406
29,654
30,543
30,736
31,472
30,682
31,893
32,585
33,112
32,232
32,683
34,067
-395
486,160
467,661
470,717
461,312
462,192
463,252
473,253
473,564
464,008
470,086
470,278
471,943
473,032
480,137
480,725
486,015
475,078
486,040
479,429
489,981
479,353
489,799
487,199
488,774
485,606
489,024
497,400
491,842
495,606
491,825
499,608
495,134
494,383
490,933
492,613
507,740
503,266
498,917
498,415
503,200
497,987
516,426
498,900
500,902
512,254
512,101
504,949
511,790
509,927
514,176
518,095
516,351
529,459
-1,414
A P R IL 1975 □ W E E K L Y R E P O R T IN G
A SSETS A N D
BANKS
A 81
LIA B IL ITIE S O F LARGE C O M M E R C IA L B A N K S , 1974— C o n t i n u e d
(In millions of dollars)
Deposits
Demand
Total
Time and savings1
Domestic
Foreign
IPC
interbank
States
and
Certi
fied
polit
and Total6
IPC ical U.S.
Com offi
sub Govt. Com Mutual
mer sav Govts., mer cers’
Sav Other
divi
cial ings etc.2 cial checks
ings
sions
banks
184,565 128,210
163,213 115,363
165,559 117,004
156,027 109,352
158,014 109,058
157,344 108,003
163,592 111,108
162,933 113,261
155,685 109,164
157,794 110,728
156,244 111,911
158,290 1(0,478
158,612 111,152
163,147 113,210
161,834 113,146
167,455 117,111
155,738 110,523
166,949 114,478
156,817 108,537
164,390 113,946
155,615 109,023
161,068 112,819
157,882 111,477
156,244 113,717
159,298 112,051
158,475 112,202
164,144 114,626
157,390 112,955
158,172 114,364
153,925 111,748
161,763 115,119
152,616 109,945
153,829 113,214
150,969 110,239
153,287 111,840
163,679 117,574
158,643 115,076
158,107 113,850
156,348 111,863
160,987 115,075
154,150 111,950
170,097 120,145
156,319 113,339
159,896 115,026
166,316 117,445
164,764 120,705
158,320 114,800
165,295 118,647
164,190 118,105
162,876 118,140
166,790 119,151
163,663 119,774
185,215 129,449
364 150
7,352
6,638
6,463
6,032
6,238
6,424
6,370
6,594
6,011
6,470
6,057
6,095
6,521
6,064
6,064
6,076
5,890
7,167
6,201
7,366
5,883
6,042
6,024
5,790
5,909
6,733
6,409
5,971
5,892
5,666
6,272
5,793
5,960
5,555
5,586
6,094
5,799
5,609
6,300
6,164
5,877
5,984
5,568
6,106
5,942
5,931
6,179
6,046
6,071
6,181
6,204
6,331
7,039
46
7,161
3,134
3,874
4,465
5,688
4,700
3,466
2,610
3,242
2,366
1,940
4,044
3,440
3,714
1,714
4,796
3,573
7,347
5,221
3,688
2,445
3,591
2,558
1,711
5,903
4,289
5,501
2,545
1,685
1,740
1,825
1,408
1,143
2,847
1,732
1,343
1,735
4,579
4,331
3,195
1,074
1,850
1,030
1,155
2,225
1,473
2,260
1,852
2,213
1,496
3,619
2,327
1,471
33
For notes see p. A-82.
25,286
23,945
23,598
22,783
22,815
23,545
26,603
25,572
22,786
23,742
22,313
23,365
22,976
24,731
24,580
24,570
22,294
22,445
22,968
24,828
23,238
25,044
22,237
21,529
22,127
21,748
23,426
22,379
22,355
20,734
23,091
21,626
20,692
20,471
21,251
24,974
22,815
21,342
20,384
22,460
21,739
26,780
24,076
23,832
26,133
22,779
21,752
24,901
24,565
22,116
23,329
22,738
31,807
-8
804
893
805
668
689
769
655
685
594
694
732
584
610
838
779
739
651
774
700
675
659
657
687
671
629
651
935
859
745
637
733
712
651
582
612
698
635
603
572
854
826
773
691
679
807
723
571
573
659
738
610
655
932
-1
1,156
1,077
1,062
994
1,190
1,552
1,139
1,313
1,224
1,102
1,059
1,067
1,221
1,327
2,203
1,671
1,479
1,449
1,368
1,310
1,075
1,114
1,899
1,431
1,360
1,220
1,246
1,193
1,269
1,104
1,875
1,378
1,116
1,171
1,172
1,149
1,442
1,211
1,302
1,166
1,155
1,283
1,095
1,247
1,174
1,250
1,072
1,055
1,245
1,313
1,529
1,273
1,838
2
4,978
4,461
4,338
4,155
4,640
4,160
4,351
4,831
4,481
4,523
4,492
4,523
4,678
4,701
4,670
4,422
4,669
4,692
4,777
4,786
4,897
4,862
5,056
4,729
4,682
4,759
4,970
5,469
5,143
5,088
5,431
5,358
5,247
4,824
4,861
5,178
5,079
4,966
5,138
5,199
5,281
5,601
4,961
4,635
4,949
5,131
5,340
5,114
5,301
5,391
5,377
5,425
6,104
130j
States
and Do
polit mes For
ical
tic eign
sub inter govts.2
divi bank
sions
9,618 189,643 57,087 95,393 22,840
7,702 190,963 57,064 96,517 23,458
8,415 191,406 56,956 96,967 23,510
7,578 192,741 56,917 98,297 23,607
7,696 193,136 56,802 98,890 23,552
8,191 192,627 56,911 98,488 23,521
9,900 192,602 56,955 98,607 23,362
8,067 192,450 57,055 98,446 23,349
8,183 192,829 57,145 99,016 23,460
8,169 193,066 57,418 98,930 23,505
7,740 194,079 57,652 99,899 23,524
8,134 194,171 57,905 99,788 23,531
8,014 195,888 58,250 101,026 23,493
8,562 197,888 58,485 102,517 23,578
8,678 200,141 58,394 104,080 23,986
8,070 200,935 58,036 103,904 24,733
6,659 203,065 57,923 105,641 24,993
8,597 203,689 57,827 106,218 24,921
7,045 205,600 57,923 107,799 25,053
7,791 206,596 57,865 108,759 25,053
8,395 208,781 57,863 110,321 25,397
6,939 209,557 57,841 111,057 25,466
7,944 209,452 57,926 111,167 24,995
6,666 209,894 57,853 111,595 24,635
6,637 209,423 57,780 111,109 24,410
6,873 210,558 57,886 111,888 24,364
7,031 211,529 58,114 112,242 24,232
6,019 211,516 58,060 112,000 24,402
6,719 213,566 57,983 113,640 24,413
7,208 215,431 57,852 114,841 24,576
7,417 216,232 57,602 115,673 24,450
6,396 217,092 57,549 116,447 24,311
5,806 217,996 57,419 117,362 24,249
5,280 218,809 57,280 118,024 24,316
6,233 219,453 57,079 118,853 24,266
6,669 219,454 57,059 118,780 24,240
6,062 219,904 56,960 119,273 24,334
5,947 219,282 56,881 118,662 24,253
6,458 220,289 56,876 119,135 24,412
6,874 221,496 57,220 119,472 24,640
6,248 221,122 57,380 118,792 24,999
7,681 221,182 57,436 118,927 24,970
5,559 221,596 57,462 119,376 24,945
7,216 219,890 57,408 118,238 24,540
7,641 219,310 57,586 117,755 24,000
6,772 219,194 57,661 117,520 23,914
6,346 218,280 57,748 116,822 23,812
7,107 218,965 57,809 117,626 23,715
6,031 219,316 57,920 117,923 23,713
7,501 221,705 57,890 119,284 24,012
6,971 224,104 57,916 120,248 24,785
5,140 225,947 57,947 121,044 25,236
6,575 228,045 58,485 122,201 25,434
12
86 -44
29 -24
5,554
5,361
5,385
5,291
5,153
5,136
4,971
4,898
4,654
4,704
4,724
4,770
4,886
5,114
5,330
5,490
5,676
5,881
6,102
6,123
6,305
6,570
6,514
6,630
6,783
6,947
7,076
7,047
7,389
7,535
7,346
7,203
7,201
7,265
7,332
7,445
7,417
7,528
7,736
7,620
7,531
7,460
7,259
7,217
7,230
7,194
7,142
7,251
7,369
7,702
7,774
8,098
8,158
1
Wednesday
8,311
2
8,123
.9
8,102
16
8,081
23
8,121
30
7,988 ........Feb. 6
8,106
13
8,073
20
7,906
27
7,890
6
7,648
13
7,541
20
7,567
27
7,480
3
7,651
10
8,105
17
8,152
24
8,201
1
8,077
8
8,176
15
8,262
22
7,927
29
8,065
5
8,345
12
8,460
19
8,542
26
8,933 ........ July 3
9,016
10
9,001
17
9,402
.24
9,898
31
7
10,115
10,220
14
10,313
21
10,240
.28
4
10,311
10,242
11
10,290
.18
10,407
25
10,787
2
10,659
.9
10,630
16
10,742
23
10,627
,30
10,859
6
11,051
13
20
10,868
10,600
,27
4
10,458
10,843
11
11,346
,18
11,631
,25
11,761
31
27
31 <
A 82
W EEK LY R E P O R T IN G
BANKS
□ A P R IL 1975
ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1974—Continued
(In millions of dollars)
Borrowings
from—
Wednesday
Jan. 2................
9.................
16.................
23................
30................
Feb. 6................
13................
20................
27................
Mar. 6................
13................
20................
27................
Apr. 3................
10................
17................
24................
May 1................
8................
15................
22................
29................
June 5................
12................
19................
26................
July 3................
10................
17................
24................
31.................
Aug. 7.................
14................
21................
28................
Sep. 4................
11.................
18................
25................
Oct. 2................
9................
16................
23................
30................
Nov.
13................
20................
27................
Dec. 4................
11................
18................
25................
31................
^ Dec. 31................
Fed
eral
funds
pur
chased F.R. Others
etc. 7 Banks
51,993
52,656
53,193
51,138
50,708
52,448
54,016
56,828
53,885
57,583
56,802
55,240
53,527
54,544
54,569
53,303
51,234
50,142
51,132
50,733
47,583
50,241
51,998
54,929
49,474
51,325
53,465
55,108
52,608
49,449
50,275
54,516
52,459
50,284
48,646
53,030
53,265
49,413
47,705
50,055
51,742
53,900
48,912
49,896
55,887
57,545
55,196
55,122
53,828
56,532
54,315
53,992
44,303
-124
754
1,941
1,083
2,408
1,316
592
2,262
840
940
671
1,362
1,910
1,700
823
1,017
939
1,728
1,366
1,487
3,004
2,349
3,968
2,092
2,658
1,988
2,341
2,361
1,745
3,417
4,780
2,781
2,286
2,268
2,375
2,632
2,572
1,927
2,569
4,433
2,183
311
1,278
1,907
1,285
476
311
2,243
1,456
122
926
1,093
207
152
Reserves
for—
Total
Other
capital Total
liabili
ac loans
ties,
etc. 8 Loans Secur counts (gross)
ities
ad
justed9
5,154 17 324
5,276 16 837
5,501 17 189
5,231 16 863
5,327 16 787
5,508 17 564
5,376 18 211
5,078 18 301
5,353 18 213
5,390 18 093
5,910 18 344
6,150 18 709
6,357 19 433
6,301 19 604
6,250 19 091
6,060 19 597
6,111 19 490
6,011 19 856
6,474 19 841
6,551 20 714
6,509 20 533
6,170 20 880
6,319 21 266
5,970 20 867
6,267 21 029
6,358 21 863
6,100 21 448
6,086 21 671
6,119 23 524
6,137 23 910
5,869 24 161
6,112 23 998
6,010 23 334
5,923 24 145
5,866 24 333
5,935 24 365
5,988 24 760
6,060 24 809
5,779 25 236
5,892 23 610
6,022 25 696
5,544 25 526
5,564 25 731
5,448 25 604
5,176 25 843
5,054 26 028
4,983 26 786
4,892 26 989
4,896 28 187
4,886 27 836
4,616 27 866
4,557 28 656
4,268 27 981
55 -1,797
4,702
4,886
4,906
4,919
4,927
4,968
4,966
4,964
4,976
5,008
5,008
5,000
4,997
4,994
4,991
4,995
4,992
5,039
5,032
5,020
5,035
5,038
5,052
5,061
5,060
5,065
5,040
5,033
5,035
5,030
5,068
5,066
5,069
5,074
5,086
5,116
5,198
5,148
5,144
5,173
5,145
5,148
5,143
5,143
5,193
5,190
5,196
5,209
5,234
5,222
5,196
5,144
5,273
-31
►These amounts represent accumulated adjustments originally made
to offset the cumulative effect of mergers.
1Includes securities purchased under agreements to resell.
2Includes official institutions and so forth.
3Includes short-termnotes and bills.
4Federal agencies only.
5Includes corporate stock.
Memoranda
65
69
74
74
83
78
73
73
78
79
79
74
74
74
74
73
66
66
66
65
65
65
66
61
61
61
62
62
62
62
62
62
62
62
62
62
62
62
62
64
64
64
64
64
64
63
63
62
78
62
66
62
60
31,960
31,820
31,806
31,911
31,894
32,123
32,155
32,097
32,049
32,402
32,450
32,399
32,444
32,762
32,758
32,658
32,654
32,922
32,980
32,908
32,883
32,812
33,072
33,090
33,006
32,978
33,251
33,231
33,103
33,101
33,397
33,386
33,356
33,292
33,248
33,527
33,519
33,467
33,419
33,740
33,735
33,687
33,664
33,676
33,989
33,952
33,882
33,800
34,076
34,131
34,049
34,123
34,162
33
270,545
267,890
267,011
265,271
264,401
266,139
265,675
265,520
266,863
268,396
268,595
271,120
273,873
278,037
278,669
281,706
279,738
284,255
282,565
283,602
284,949
283,987
287,026
286,532
288,761
289,639
292,796
292,787
293,749
292,360
297,160
296,752
294,907
294,637
298,619
297,110
299,484
300,885
297,910
298,866
301,381
298,631
296,530
296,656
298,020
299,581
298,696
298,518
302,943
300,561
302,589
301,804
304,318
-891
Large negotiable
time CD’s
Total
in time
loans De andincluded
savings deposits11
and mand
invest deposits
ments ad
(gross) justed
1o Total Issued Issued
ad
to
to
justed9
IPC’s others
357,529 112,534
355,452 103,687
354,149 103,402
352,506 98,800
351,487 99,350
353,461 97,422
351,672 95,668
352,474 96,737
353,769 98,176
356,730 98,300
357,201 99,148
358,290 97,981
360,705 99,336
365,267 101,440
366,271 102,746
368,573 102,792
365,057 100,361
369,273 102,013
367,829 98,130
368,478 99,444
368,918 98,535
367,740 96,754
371,498 100,788
372,164 100,558
373,499 99,025
373,750 100,529
376,420 98,406
375,768 101,219
376,290 100,952
374,969 99,577
380,439 101,655
380,399 99,454
378,337 100,928
377,455 98,571
381,517 100,293
380,402 99,760
383,444 101,196
383,704 100,707
379,852 100,326
380,787 101,460
383,780 101,374
381,203 99,458
378,274 97,597
378,763 101,052
381,336 99,178
383,994 102,373
383,052 102,112
382,223 100,674
387,700 103,624
386,959 105,616
390,057 105,361
388,842 103,353
391,143 109,981
-1,211
226
64,626
65,578
65,637
66,458
66,936
66,215
66,157
65,680
65,753
65,877
66,523
66,261
67,815
69,479
71,540
71,753
73,600
74,288
75,979
76,879
78,837
79,583
79,160
79,647
79,154
80,174
80,848
81,129
82,973
84,791
85,491
86,033
86,916
87,848
88,484
88,475
88,981
88,209
89,116
89,501
88,845
88,671
88,975
87,673
87,088
87,146
86,298
87,351
88,021
89,805
90,996
92,359
92,830
38
43,219
44,090
44,337
45,275
45,741
45,058
45,076
44,752
45,056
45,018
45,791
45,454
46,825
48,173
49,788
49,589
51,235
51,633
52,954
53,774
55,179
55,873
55,641
55,969
55,347
55,981
56,228
56,190
57,542
58,605
59,109
59,692
60,628
61,062
61,747
61,506
62,078
61,284
61,712
61,808
61,173
61,246
61,655
60,619
60,163
59,938
59,371
60,352
60,834
62,049
62,833
63,531
64,264
23
6Includes U.S. Govt, and foreign bank deposits,
21,407
21,488
21,300
21,183
21,195
21,157
21,081
20,928
20,697
20,859
20,732
20,807
20,990
21,306
21,752
22,164
22,365
22,655
23,025
23,105
23,658
23,710
23,519
23,678
23,807
24,193
24,620
24,939
25,431
26,186
26,382
26,341
26,288
26,786
26,737
26,969
26,903
26,925
27,404
27,693
27,672
27,425
27,320
27,054
26,925
27,208
26,927
26,999
27,187
27,756
28,163
28,828
28,566
15
Gross
liabili
ties of
banks
to
their
foreign
branch
es
1,158
1,322
2,040
2,004
1,686
1,659
2,218
1,735
1,689
1,610
2,274
2,459
2,947
2,717
2,908
3,020
2,495
2,709
3,025
3,080
3,418
2,988
2,813
2,410
2,503
3,388
3,177
2,804
4,583
4,711
3,314
3,499
2,910
3,694
3,012
3,002
3,334
3,449
2,918
2,372
2,188
3,140
2,709
2,131
1,970
1,897
2,319
2,661
3,353
3,245
3,751
3,997
3,553
not shown separately.
7Includes securities sold under agreements to repurchase.
8Includes minority interest in consolidated subsidiaries.
9Exclusive of loans and Federal funds transactions with domestic com
mercial banks.
iOAll demand deposits except U.S. Govt, and domestic commercial
banks, less cash items in process of collection.
11Certificates of deposit issued in denominations of $100,000 or more.
A P R IL 1975 □ B U S I N E S S
C O M M E R C IA L A N D
IN D U S T R IA L L O A N S O F
L O A N S O F B A N K S , 1974
A 83
LARGE C O M M E R C IA L B A N K S — C o n t in u e d
(In millions of dollars)
1974—Wednesday dates
Industry
Durable goods manufacturing:
Primary metals........................
Machinery.............................
Transportation equipment...........
Other fabricated metal products . ..
Other durable goods.................
Nondurable goods manufacturing:
Food, liquor, and tobacco...........
Textiles, apparel, and leather.......
Petroleum refining....................
Chemicals and rubber................
Other nondurable goods.............
Mining, including crude petroleum
and natural gas.......................
Trade: Commodity dealers............
Other wholesale................
Retail............................
Transportation..........................
Communication.........................
Other public utilities...................
Construction............................
Services...................................
All other domestic loans...............
Bankers acceptances....................
Foreign commercial and industrial
loans.................................
Total classified loans...................
Jan.
2
Jan.
9
Jan.
16
Jan.
23
Jan.
30
Feb.
6
Feb.
13
.Feb.
20
Feb.
27
Mar.
6
Mar.
13
Mar.
20
Mar.
27
1,786
6,808
2,407
2,337
3,722
4,090
3,223
1,256
2,462
2,143
3,941
1,858
5,504
5,892
6,040
2,265
6,050
5,483
11,188
8,774
1,269
4,092
92,590
1,829
6,724
2,439
2,350
3,722
4,082
3,278
1,318
2,392
2,160
3.917
1,919
5,438
5,685
6,118
2,234
6,093
5,475
11,121
8,456
1,264
4,058
92,072
1,839
6,844
2,501
2,383
3,715
4,057
3,279
1,294
2,426
2,148
3,906
2,037
5,417
5,886
6,050
2,192
5,908
5,415
10,911
8,560
1,183
4,165
92,116
1,840
6,628
2,516
2,350
3,671
4,057
3,242
1,275
2,457
2,163
3,869
2,151
5,438
5,912
5,989
2,150
5,896
5,414
10,898
8,320
1,179
4,182
91,597
1,867
6,724
2,490
2,344
3,621
3,954
3,210
1,277
2,445
2,106
4,027
2,258
5,444
5,811
5,966
2,142
5,711
5,434
10,806
8,376
1,249
4,159
91,421
1,835
6,768
2,604
2,303
3,610
3,990
3.282
1,197
2,507
2, 125
4,036
2,322
5,478
5,839
5,937
2,196
5,710
5.379
10,870
8,308
1,192
4,139
91.627
1,787
6,845
2,591
2,325
3,660
3,941
3,344
1,200
2,544
2,108
4,087
2,337
5,456
5,988
5,931
2,172
5,546
5,371
10,911
8,348
1.129
4,147
91,768
1,785
6,781
2,675
2,363
3,732
3,943
3,416
1,200
2,509
2,147
4,101
2,273
5,509
6,044
5,934
2,138
5,464
5,411
10,863
8,158
1,121
4,037
91,604
1,798
6,852
2,661
2,356
3,736
3,982
3,444
1,204
2,499
2, 133
4,067
2,307
5,623
6,185
5,905
2,102
5,440
5,425
10,934
8,281
1,250
4,017
92,201
1,809
7,046
2,688
2,382
3,793
4,059
3,538
1,200
2,568
2,133
4,095
2,206
5.601
6,393
5,986
2,099
5,378
5,395
11,017
8,577
1.244
3,986
93,193
1,828
7,186
2,735
2,448
3,887
4,095
3,638
1,229
2,632
2,163
4,081
2,230
5,651
6,340
5,969
2,103
5,360
5,432
11,057
8,578
1,348
4,070
94,060
1,880
7,460
2,793
2,566
3,947
4,258
3,750
1,215
2,705
2,230
4,117
2,244
5,841
6,527
6,045
2,184
5,412
5,510
11,232
8,662
1,287
4,089
95,954
1,888
7,740
2,878
2,600
4,052
4,281
3,789
1,216
2,771
2,261
4,116
2,199
5,880
6,615
6,069
2,175
5,586
5,524
11,245
8,812
1,336
4,178
97,211
Total commercial and industrial loans
of large commercial banks....... 111,047 110,467 110,484 109,906 109,724 109,986 110,149 110,142 110,707 111,725 112,702 114,739 115,953
1974—Wednesday dates
Industry
Durable goods manufacturing:
Primary metals.......................
Machinery............................
Transportation equipment..........
Other fabricated metal products. ..
Other durable goods................
Nondurable goods manufacturing:
Food, liquor, and tobacco..........
Textiles, apparel, and leather.......
Petroleumrefining...................
Chemicals and rubber...............
Other nondurable goods............
Mining, including crude petroleum
and natural gas.......................
Trade: Commodity dealers............
Other wholesale................
Retail............................
Communication.........................
Other public utilities...................
Construction............................
Service...................................
All other domestic loans...............
Foreign commercial and industrial
loans................................
Total classified loans...................
Apr.
3
Apr.
10
Apr.
17
Apr.
24
May
1
May
8
May
15
May
22
May
29
June
5
June
12
June
19
June
26
1,920 1,934 1,915 1,909 1,896 1,887 1,916 1,920 1,894 1,853 1,850 1,856 1,865
8,024 8,196 8,390 8,149 8,364 8,220 8,317 8,190 8,156 8,208 8,378 8,575 8,519
3,155 3,107
2,914 2,966 3,055 3,053 3,063 3,161 3,141 3,108 2,997 3,016 3,071 2,821
2,836
2,616 2,681 2,724 2,705 2,742 2,801 2,861 2,803 2,777 2,775 2,791
4,193 4,271 4,325 4,326 4,372 4,450 4,462 4,413 4,452 4,472 4,503 4,526 4,612
4,363 4,325 4,368 4,326 4,279 4,322 4,295 4,216 4,059 3,988 3,875 3,940 3,937
3,771 3,879 3,918 3,911 3,868 3,957 3,989 3,934 3,913 3,953 4,024 4,075 4,128
1,370 1,225 1,223 1,208 1,218 1,187 1,192 1,204 1,495 1,337 1,312 1,279 1,283
2,893 2,975 3,102 2,998 3,048 3,083 3,119 3,071 3,006 3,059 3,114 3,162 3,126
2,308 2,305 2,355 2,357 2,360 2,391 2,385 2,371 2,363 2,387 2,406 2,457 2,483
4,267 4,308 4,239 4,262 4,202 4,165 4,217 4,211 4,168 4,132 4,152 4,196 4,191
2,170 2,126 2,007 1,962 1,902 1,776 1,767 1,718 1,657 1,565 1,565 1,535 1,569
6,244
5,901 5,959 5,997 6,119 6,169 6,159 6,103 6,061 6,112 6,057 6,075 6,199 7,172
6,873 6,869 7,018 6,930 7,115 6,985 6,994 7,012 7,049 6,974 6,981 7,161
6,087 6,056 6,094 6,065 6,087 6,034 6,046 6,086 6,134 6,130 6,096 6,110 6,103
2,380 2,389 2,483 2,428 2,465 2,422 2,465 2,508 2,530 2,514 2,444 2,530 2,501
5,886 5,886 6,029 5,976 6,241 6,289 6,257 6,381 6,373 6,369 6,505 6,610 6,921
6,147
5,564 5,586 5,651 5,661 5,730 5,767 5,834 5,932 5,979 5,987 6,026 6,103 11,650
11,350 11,388 11,532 11,541 11,608 11,548 11,521 11,520 11,542 11,557 11,607 11,658
8,941 8,829 9,001 8,856 9,273 9,267 9,144 9,002 8,994 9,083 9,186 9,332 9,388
1,265 1,141 1,260 1,292 1,458 1,482 1,380 1,376 1,416 1,457 1,472 1,488 1,717
4,684
4,299 4,345 4,371 4,346 4,381 4,476 4,527 4,468 4,478 4,600 4,671 4,686 104,183
99,355 99,639 101,057 100,380 101,841 101,829 101,932 101,505 101,544 101,473 102,104 103,454
Total commercial and industrial loans
of large commercial banks....... 118,477118,926 120,453 119,795 121,332 121,444 121,503 121,041 120,913 120,766 121,519 123,004 123,612
For N ote see opposite page.
A 84
BUSINESS LOANS OF BANKS, 1974 □ APRIL 1975
COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS—Continued
(In millions of dollars)
1974—Wednesday dates
Industry
July
3
Durable goods manufacturing:
Primary metals.......................
Machinery............................
Transportation equipment..........
Other fabricated metal products__
Other durable goods.................
Nondurable goods manufacturing:
Food, liquor, and tobacco.........
Textiles, apparel, and leather.......
Petroleumrefining...................
Chemicals and rubber...............
Other nondurable goods............
Mining, including crude petroleum
and natural gas.......................
Trade: Commodity dealers............
Other wholesale................
Retail............................
Transportation..........................
Communication.........................
Other public utilities...................
Construction............................
Services..................................
All other domestic loans...............
Bankers acceptances....................
Foreign commercial and industrial
loans................................
Total classified loans...................
July
10
July
17
July
24
July
31
Aug.
7
Aug.
14
Aug.
21
Aug.
28
Sept. Sept.
11
4
Sept.
18
Sept.
25
1,829 1,853 1,882 1,874 1,866 1,878 1,908 1,898 1,871 1,880 1,933 1,943 1,928
8,490 8,581 8,656 8,668 8,503 8,544 8,645 8,672 8,545 8,606 8,750 9,014 8,868
3,183 3,213 3,159 3,189 3,197 3,254 3,260 3,324 3,367 3,392 3,412 3,438 3,447
2,897 2,923 2,991 2,975 2,959 2,983 2,996 2,980 2,995 3,036 3,063 3,111 3,089
4,732 4,812 4,785 4,759 4,795 4,883 4,946 4,948 4,985 5,027 5,111 5,146 5,124
3,965 4,023 4,048 4,041 4,025 4,065 4,109 4,195 4,200 4,295 4,329 4,399 4,437
4,209 4,196 4,185 4,188 4,116 4,273 4,311 4,327 4,357 4,374 4,352 4,328 4,235
1,443 1,484 1,669 1,692 1,832 1,787 1,815 1,810 1,745 1,787 1,788 1,760 1,777
3,211 3,252 3,277 3,204 3,201 3,309 3,299 3,305 3,309 3,357 3,388 3,447 3,437
2,511 2,519 2,532 2,535 2,513 2,539 2,560 2,579 2,575 2,599 2,614 2,665 2,641
4,204 4,222 4,330 4,370 4,382 4,403 4,376 4,390 4,432 4,497 4,489 4,503 4,481
1,514 1,457 1,434 1,445 1,491 1,476 1,436 1,451 1,459 1,426 1,400 1,388 1,374
6,392 6,360 6,354 6,320 6,392 6,408 6,386 6,372 6,334 6,308 6,280 6,320 6,379
7,154 7,071 7,242 7,199 7,264 7,134 7,127 7,194 6,996 7,061 6,936 6,965 6,953
6,131 6,122 6,008 6,043 6,024 6,012 6,109 6,043 6,084 6,033 6,038 6,116 6,125
2,637 2,584 2,563 2,397 2,419 2,407 2,392 2,365 2,383 2,372 2,371 2,388 2,409
7,395 7,379 7,635 7,577 7,666 7,641 7,505 7,594 7,611 7,804 7,847 7,875 8,009
6,203 6,195 6,217 6,233 6,235 6,257 6,305 6,320 6,390 6,343 6,371 6,422 6,378
11,683 11,651 11,726 11,759 11,736 11,798 11,775 11,799 11,771 11,821 11,823 11,836 11,783
9,513 9,513 9,552 9,584 9,490 9,469 9,360 9,457 9,661 9,731 9,787 9,739 9,745
2,012 2,081 1,870 I ,560 1,490 1,270 1,326 1,320 1,352 1,316 1,369 1,287 1,352
4,839 4,804 4,887 4,950 4,857 4,882 4,796 4,718 4,527 4,548 4,594 4,587 4,476
106,147 106,295 107,002 106,562 106,453 106,672 106,742 107,061 106,949 107,613 108,045 108,677 108,447
Total commercial and industrial loans
of large commercial banks.......... 125,614 125,813 126,581 126,158 126,143 126,427 126,521 126,880 126,771 127,466 127,978 128,668 128,407
1974—Wednesday dates
Industry
Oct.
2
Oct.
9
Oct.
16
Oct.
23
Oct.
30
Nov.
6
Nov.
13
Nov.
20
Nov.
27
Dec.
4
Dec.
11
Dec.
18
Dec.
25
Dec.
31
(Tues.)
Durable goods mfg.:
Primary metals............. 1,909 1,938 1,941 1,921 1,871 1,872 1,877 1,862 1,935 1,931 1,916 1,925 1,973 2,005
Machinery.................. 8,892 8,835 8,885 8,780 8,679 8,719 8,813 8,749 8,824 8,872 9,063 9,187 9,131 8,741
Trans, equipment.......... 3,444 3,465 3,451 3,460 3,519 3,470 3,473 3,454 3,479 3,516 3,664 3,813 3,788 3,812
Other fabricated metal
products.................. 3,079 3,051 3,068 3,042 3,029 3,010 2,997 2,936 2,925 2,952 2,935 2,975 2,922 2,911
Other durable goods....... 5,140 5,184 5,160 5,120 5,061 5,048 5,122 5,029 5,035 5,013 5,034 4,966 4,953 4,859
Nondurable goods mfg.:
Food, liquor, and tobacco. 4,316 4,306 4,401 4,461 4,429 4,469 4,436 4,502 4,564 4,597 4,617 4,773 4,877 4,921
Textiles, apparel, and
leather.................... 4,212 4,204 4,196 4,094 3,988 4,017 4,023 3,925 3,846 3,799 3,750 3,712 3,652 3,510
Petroleum refining......... 1,764 1,809 1,885 1,879 1,900 1,891 1,876 1,889 1,932 2,005 1,976 1,997 2,037 2,250
Chemicals and rubber..... 3,507 3,489 3,486 3,350 3,390 3,446 3,431 3,364 3,290 3,266 3,318 3,457 3,426 3,382
Other nondurablegoods.. . 2,610 2,563 2,544 2,532 2,497 2,505 2,501 2,475 2,451 2,454 2,495 2,558 2,557 2,506
Mining, incl. crude petroleum
and natural gas............ 4,549 4,455 4,554 4,565 4,636 4,646 4,707 4,740 4,802 4,865 4,893 4,912 4,845 5,037
Trade: Commodity dealers. . 1,374 1,458 1,579 1,618 1,763 I,888 1,999 2,177 2,135 2,101 2,100 2,037 1,954 2,077
Other wholesale..... 6,387 6,394 6,462 6,389 6,410 6,426 6,461 6,476 6,565 6,522 6,491 6,493 6,621 6,728
Retail................. 7,081 6,945 7,065 7,001 7,149 7,247 7,169 7,183 7,305 7,169 7,230 7,208 6,894 6,707
Transportation................ 6,220 6,130 6,099 6,095 6,108 6,130 6,127 6,079 6,088 6,090 6,139 6,152 6,233 6,386
Communication.............. 2,477 2,469 2,380 2,313 2,198 2,272 2,231 2,234 2,220 2,212 2,223 2,283 2,269 2,499
Other public utilities......... 8,078 8,046 7,819 7,811 7,725 8,078 7,995 8,077 8,045 8,213 8,224 8,252 8,383 8,618
Construction.................. 6,394 6,350 6,360 6,321 6,348 6,349 6,326 6,344 6,399 6,339 6,348 6,289 6,220 6,102
Services........................ 11,816 11,799 11,770 11,737 11,809 11,795 11,803 11,888 11,810 11,892 11,898 11,929 11,948 11,954
All other domestic loans .... 9,802 9,758 10,071 10,047 9,997 10,145 9,996 9,887 9,969 10,131 9,995 9,967 9,846 10,132
Bankers acceptances......... 1,387 1,496 1,497 1,452 1,453 1,441 1,478 1,494 1,642 1,759 1,643 1,586 1,635 1,661
Foreign coml. and ind. loans. 4,405 4,401 4,374 4,400 4,384 4,373 4,249 4,279 4,268 4,215 4,226 4,214 4,144 4,227
Total classified loans......... 108,843 108,545 109,047 108,388 108,343 109,237 109,090 109,043 109,529 109,913 110,178 110,685 110,308 111,025
Total coml. and ind. loans of
large coml. banks......... 128,827 128,529 129,032 128,323 128,328 129,300 129,147 129,208 129,798 130,278 130,430 131,527 131,386 131,875
Note.—About 160 weekly reporting banks are included in this series;
these banks classify, byindustry, 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 Bulletin, p. 209.
Commercial and industrial “term” loans are all outstanding loans with
an original maturity ofmore than 1year 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 1year.
A P R IL 1975 □ B U S I N E S S
L O A N S O F B A N K S , 1974
A 85
“ T E R M ” C O M M E R C IA L A N D IN D U S T R IA L L O A N S O F U R G E C O M M E R C IA L B A N K S
(In millions of dollars)
1974
Industry
Jan.
30
Feb.
27
Mar.
27
Apr.
24
May
29
June
26
July
31
Durable goods manufacturing:
Primary metals.................................. 1,092 1,046 1,064 1,083 1,111 1,105 1,116
Machinery....................................... 2,950 3,037 3,114 3,145 3,213 3,286 3,572
Transportation equipment.................... 1,324 1,367 1,365 1,423 1,424 1,410 1,373
Other fabricated metal products.............
938 911 911 934 960 954 996
Other durable goods........................... 1,737 1,837 1,915 1,972 2,012 2,107 2,169
Nondurable goods manufacturing:
Food, liquor, and tobacco.................... 1,514 1,527 1,529 1,533 1,584 1,571 1,604
Textiles, apparel, and leather................. 1,032 1,043 1,089 1,147 1,120 1,128 1,182
Petroleumrefining..............................
920 901 945 934 954 963 996
Chemicals and rubber.......................... 1,570 1,569 1,603 1,690 1,686 1,737 1,760
Other nondurable goods....................... 1,069 1,080 1,139 1,145 1,157 1,171 1,149
Mining, includingcrudepetroleumand natural
gas............................................. 3,153 3,203 3,245 3,284 3,172 3,130 3,197
Trade:
Commodity dealers............................
137 129 140 144 144 141
155
Other wholesale................................. 1,265 1,315 1,323 1,335 1,404 1,406 1,446
Retail............. ............................... 2,249 2,376 2,480 2,543 2,514 2,428 2,512
Transportation..................................... 4,327 4,311 4,417 4,414 4,474 4,425 4,353
Communication...................................
947 940 966 978 1,033 1,030 1,030
Other public utilities.............................. 3,298 3,245 3,154 3,196 3,356 3,443 3,539
Construction....................................... 1,943 1,940 1,898 1,908 1,984 2,130 2,183
Services............................................. 4,937 5,004 5,076 5,223 5,263 5,273 5,275
All other domestic loans......................... 2,692 2,384 2,808 2,935 2,945 3,017 3,058
Foreign commercial and industrial loans...... 2,469 2,321 2,350 2,369 2,396 2,548 2,565
Total loans......................................... 41,563 41,486 42,531 43,335 43,906 44,403 45,230
Note.—Figures are for the last Wednesday of the month, except as noted.
Aug.
28
Sept.
25
Oct.
30
Nov.
27
Dec.
31
(Tues.)
1,104
3,789
1,419
1,000
2,198
1,604
1,171
1,048
1,790
1,189
3,319
166
1,419
2,529
4,322
1,021
3,664
2,218
5,301
3,074
2,500
45,845
1,133
3,896
1,535
1,066
2,268
1,649
1,151
1,097
1,778
1,204
3,339
139
1,449
2,527
4,349
1,029
3,672
2,272
5,350
3,122
2,401
46,426
1,107
3,970
1,570
1,093
2,339
1,661
1,187
1,208
1,820
1,187
3,468
157
1,488
2,578
4,370
1,047
3,810
2,237
5,340
3,215
2,487
47,339
1,176
4,049
1,586
1,113
2,361
1,674
1,179
1,272
1,818
1,170
3,620
171
1,431
2,602
4,379
1,076
3,987
2,281
5,417
3,255
2,473
48,090
1,210
4,145
1,673
1,197
2,391
1,763
1,145
1,518
1,878
1,235
3,701
155
1,492
2,594
4,550
1,082
3,963
2,294
5,532
3,224
2,457
49,199
A 86
Board o f G overnors o f the Federal Reserve System
A r th u r
F.
B u rn s,
Chairman
G eorge W . M it c h e ll,
John E. S h eeh a n
P h ilip E. C o l d w e l l
H en ry C. W a llic h
OFFICE OF MANAGING DIRECTOR
FOR OPERATIONS
O FFIC E O F B O A R D M E M B E R S
T h o m a s J. O ’C o n n e l l ,
Counsel to the
Chairman
J o h n M . D e n k l e r , Deputy Managing Director
* L e v o n H . G a r a b e d i a n , Assistant Managing
Director
Assistant Director
and Program Director for
Contingency Planning
W i l l i a m W . L a y t o n , Director of Equal
Employment Opportunity
B r e n t o n C . L e a v i t t , Program Director for
Banking Structure
P e t e r E . B a r n a , Program Director for
Bank Holding Company Analysis
G o r d o n B . G r im w o o d ,
R o b e r t S o l o m o n , Adviser to the Board
J o s e p h R . C o y n e , Assistant to the Board
J o h n S . R i p p e y , Assistant to the Board
J o h n J. H a r t , Special Assistant to the Board
F r a n k O ’B r i e n , J r . , Special Assistant to the
Board
D o n a l d J. W i n n ,
Special Assistant to the
Board
J o h n N i c o l l , Deputy
B a ld w in B . T u t t l e ,
General Counsel
Assistant General
Counsel
R o n a l d G . B u r k e , Director
J a m e s R . K u d l i n s k i , Associate Director
E . M a u r i c e M c W h i r t e r , Associate Director
W a l t e r A . A l t h a u s e n , Assistant Director
H a r r y A . G u i n t e r , Assistant Director
T h o m a s E . M e a d , Assistant Director
P . D . R i n g , Assistant Director
W i l l i a m H . W a l l a c e , Assistant Director
Assistant to the
General Counsel
A l l e n L . R a i k e n , Adviser
G a r y M . W e l s h , Adviser
O FFIC E O F S A V E R A N D C O N S U M E R A F F A IR S
Assistant to the
Board and Director
J a n e t 0 . H a r t , Deputy Director
R o b e r t S . P l o t k i n , Assistant Director
F r e d e r ic S o l o m o n ,
OFFICE OF MANAGING DIRECTOR FOR
RESEARCH AND ECONOMIC POLICY
J. C h a r l e s P a r t e e , Managing Director
S t e p h e n H . A x i l r o d , Adviser to the Board
S a m u e l B . C h a s e , J r . , Adviser to the Board
A r t h u r L . B r o i d a , Assistant to the Board
M u r r a y A l t m a n n , Special Assistant to the
Board
N orm and R. V . B ern a rd ,
Special Assistant
to the Board
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
L E G A L D IV IS IO N
C h a r le s R . M c N e ill,
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
Vice Chairman
R o b e r t C. H o l l a n d
Jeffrey M . B u c h e r
L y l e E . G r a m l e y , Director
J a m e s L . P i e r c e , Associate Director
P e t e r M . K e i r , Adviser
J a m e s L . K i c h l i n e , Adviser
S t a n l e y J. S i g e l , Adviser
J o s e p h S . Z e i s e l , Adviser
J a m e s B . E c k e r t , Associate Adviser
E d w a r d C . E t t i n , Associate Adviser
R o b e r t J. L a w r e n c e , Associate Adviser
E l e a n o r J. S t o c k w e l l , Associate Adviser
R o b e r t M . F i s h e r , Assistant Adviser
J. C o r t l a n d G . P e r e t , Assistant Adviser
S t e p h e n P . T a y l o r , Assistant Adviser
H e l m u t F . W e n d e l , Assistant Adviser
L e v o n H . G a r a b e d i a n , Assistant Director
D IV IS IO N O F D A T A P R O C E S S IN G
O F F IC E O F T H E S E C R E T A R Y
C h a r l e s L . H a m p t o n , Director
G l e n n L . C u m m i n s , Assistant Director
W a r r e n N . M i n a m i , Assistant Director
R o b e r t J. Z e m e l , Assistant Director
D IV IS IO N O F B A N K IN G S U P E R V IS IO N
A N D R E G U L A T IO N
D IV IS IO N O F P E R S O N N E L
K e i t h D . E n g s t r o m , Director
C h a r l e s W . W o o d , Assistant Director
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 , Controller
T y l e r E . W i l l i a m s , J r . , Assistant
T h e o d o r e E . A l l i s o n , Secretary
G r i f f i t h L . G a r w o o d , Assistant Secretary
t R o b e r t S m i t h II I , Assistant Secretary
Controller
B r e n t o n C . L e a v i t t , Director
F r e d e r i c k R . D a h l , Assistant Director
J a c k M . E g e r t s o n , Assistant Director
J o h n N . L y o n , Assistant Director
J o h n T . M c C l i n t o c k , Assistant Director
T h o m a s A . S i d m a n , Assistant Director
W i l l i a m W . W i l e s , Assistant Director
J o h n E . R y a n , Adviser
D IV IS IO N O F IN T E R N A T IO N A L F IN A N C E
R a l p h C . B r y a n t , Director
J o h n E . R e y n o l d s , Associate Director
R o b e r t F . G e m m i l l , Adviser
R e e d J. I r v i n e , Adviser
H e l e n B . J u n z , Adviser
B e r n a r d N o r w o o d , Adviser
S a m u e l P i z e r , Adviser
G e o r g e B . H e n r y , Associate Adviser
C h a r l e s J. S i e g m a n , Assistant Adviser
E d w i n M . T r u m a n , Assistant Adviser
D IV IS IO N O F A D M IN IS T R A T IV E SE R V IC E S
W a l t e r W . K r e i m a n n , Director
D o n a l d E . A n d e r s o n , Assistant Director
J o h n D . S m i t h , Assistant Director
*Temporary appointment.
A
87
tOn loan from the Federal Reserve Bank of Dallas.
A
88
Federal O pen M arket C om m ittee
F.
A r th u r
Chairman
B u rn s,
E r n e s t T. B a u g h m a n
Je f f r e y M . B u c h e r
P h il ip E . C o l d w e l l
D a v id P. E a stbu r n
R obert C . H o lla n d
B ruce K . M acL aury
R obert P M ayo
Secretary
Deputy Secretary
B e r n a r d , Assistant
Secretary
General Counsel
Deputy General Counsel
J o h n N i c o l l , Assistant General Counsel
J. C h a r l e s P a r t e e , Senior Economist
S t e p h e n H . A x i l r o d , Economist
(Domestic Finance)
L y l e E . G r a m l e y , Economist
(Domestic Business)
T h o m a s J. O ’C o n n e l l ,
E dw ard G. G u y,
A l a n R . H o lm e s ,
G e o r g e W . M it c h e l l
Jo h n E . S h e e h a n
H e n r y C . W a l l ic h
Economist
(International Finance)
E d w a r d G . B o e h n e , Associate Economist
R a l p h C . B r y a n t , Associate Economist
S a m u e l B . C h a s e , J r . , Associate Economist
R i c h a r d G . D a v i s , Associate Economist
R a l p h T . G r e e n , Associate Economist
J o h n K a r e k e n , Associate Economist
J a m e s L . P i e r c e , Associate Economist
J o h n E . R e y n o l d s , Associate Economist
K a r l O . S c h e l d , Associate Economist
R obert S olom on
A r t h u r L . B r o id a ,
M u r r a y A ltm a n n ,
N orm and R. V .
Vice Chairman
A lfr e d H a y es,
Manager, System Open Market Account
Deputy Manager for Domestic Operations
Deputy Manager for Foreign Operations
P e te r D . S te r n lig h t ,
S c o t t E. P a r d e e ,
Federal A dvisory C ouncil
Thom as
I.
S to r r s, f if t h fe d e r a l r e se r v e d is tr ic t,
D o n a ld E. L a s a te r , e ig h t h f e d e r a l r e s e r v e d is t r ic t ,
G eo rg e B . R o c k w e ll, fir s t fe d e r a l
W il l iam F. M u r r a y ,
r e s e r v e d is tr ic t
s e v e n t h fe d e r a l
r eserve district
E llm o r e C. P a tt e r s o n , se c o n d f e d e r a l
G eorge H . D i x o n ,
r e s e r v e d is tr ic t
n in t h f e d e r a l
r eserve distr ic t
Jam es F. B o d i n e , t h i r d f e d e r a l
Eugene H. A d a m s,
r e se r v e d is tr ic t
t e n t h federal
re se rve district
C la ir E. F u l t z , f o u r t h f e d e r a l
B e n F. L o v e ,
r e se r v e d is tr ic t
e l e v e n t h federal
r eserve district
L a w r e n c e A . M e r r ig a n , s i x t h f e d e r a l
H arold A . R o g er s,
r e s e r v e d is tr ic t
President
Vice President
r eserve district
Secretary
Associate Secretary
H erbert V. P rochnow ,
W i l li a m J. K o r s v ik ,
tw el fth federal
A
89
Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, or facility
Zip
Chairman
Deputy Chairman
President
First Vice President
BOSTON* ...........
02106
Louis W. Cabot
Robert M. Solow
Frank E. Morris
James A. McIntosh
NEW YORK*
10045
Roswell L. Gilpatric
Frank R. Milliken
Donald Nesbitt
Alfred Hayes
Richard A. Debs
Buffalo ............ ..14240
PHILADELPHIA
19105
John R. Coleman
Edward J. Dwyer
David P. Eastburn
Mark H. Willes
CLEVELAND*
44101
Horace A. Shepard
Robert E. Kirby
Phillip R. Shriver
G. Jackson Tankersley
Willis J. Winn
Walter H. MacDonald
Robert W. Lawson, Jr.
E. Craig Wall, Sr.
James G. Harlow
Charles W. DeBell
Robert P. Black
George C. Rankin
Cincinnati .........
Pittsburgh .........
45201
15230
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 ......... 72203
Louisville .......... 40201
Memphis ........... 38101
MINNEAPOLIS
55480
Helena ............... 59601
KANSAS CITY
64198
Denver ............. 80217
Oklahoma City _ 73125
Omaha ............. 68102
DALLAS .............
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
Jimmie R. Monhollon
Stuart P. Fishburne
J. Gordon Dickerson, Jr.
H. G. Pattillo
Clifford M. Kirtland, Jr.
Frank P. Samford, Jr.
James E. Lyons
John C. Tune
Floyd W. Lewis
Monroe Kimbrel
Kyle K. Fossum
Peter B, Clark
Robert H. Strotz
W. M. Defoe
Robert P. Mayo
Daniel M. Doyle
Edward J. Schnuck
Sam Cooper
W. M. Pierce
James H. Davis
Jeanne L. Holley
Darryl R. Francis
Eugene A. Leonard
Bruce B. Dayton
James P. McFarland
William A. Cordingley
Bruce K. MacLaury
Clement A. Van Nice
Robert T. Person
Harold W. Andersen
Maurice B. Mitchell
James G. Harlow, Jr.
Durward B. Varner
George H. Clay
John T. Boysen
John Lawrence
Charles T. Beaird
Herbert M. Schwartz
Thomas J. Barlow
Pete J. Morales, Jr.
Ernest T. Baughman
T. W. Plant
O. Meredith Wilson
Joseph F. Alibrandi
Joseph R. Vaughan
Loran L. Stewart
Sam Bennion
Malcolm T. Stamper
John J. Balles
John B. Williams
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
J. David Hamilton
William G. Evans
Robert D. Hamilton
Fredric W. Reed
James L. Cauthen
Carl H. Moore
Gerald R. Kelly
William M. Brown
A. Grant Holman
Paul W. Cavan
*Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford,
New Jersey 07016; Jericho, New York 11753; Columbus, Ohio 43216; Columbia, South Carolina 29210; Des Moines, Iowa
50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202.
A
90
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coupons are not accepted.)
The Federal Reserve System—Purposes and
Functions. 1974. 125 pp. $1.00 each; 10 or more
to one address, $.75 each.
Annual Report
Federal Reserve Bulletin. Monthly. $20.00 per
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A
STAFF ECONOMIC STUDIES
Studies and papers on economic and financial subjects.
that are of general interest in the field of economic
research.
Summaries Only Printed in the Bulletin
(Limited supply of mimeographed copies of full
text available upon request for single copies)
The Impact of Holding Company Acquisitions on
Aggregate Concentration in Banking, by
Samuel H. Talley. Feb. 1974. 24 pp.
Operating Policies of Bank Holding Companies—
Part II: Nonbanking Subsidiaries, by Robert J.
Lawrence. Mar. 1974. 59 pp.
Short-Run Variations in the Money Stock—Sea
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Raymond E. Lombra. June 1974. 27 pp.
Household-Sector Economic Accounts, by David
F. Seiders. Jan. 1975. 84 pp.
Printed
in
Full
in the
Bulletin
Staff Economic Studies shown in list below.
REPRINTS
(Except for Staff Papers, Staff Economic Studies, and
some leading articles, most of the articles reprinted do
not exceed 12 pages.)
Seasonal Factors Affecting Bank Reserves. 2/58.
Measures of Member Bank Reserves. 7/63.
Research on Banking Structure and Perform
ance, 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.
U.S. International Transactions: Trends in
1960-67. 4/68.
Euro-Dollars: A Changing Market. 10/69.
Recent Changes in Structure of Commercial
Banking. 3/70.
Measures of Security Credit. 12/70.
Monetary Aggregates and Money Market Con
ditions in Open Market Policy. 2/71.
Interest Rates, Credit Flows, and Monetary Ag
gregates Since 1964. 6/71.
Industrial Production—Revised and New Meas
ures. 7/71.
91
Revised Measures of Manufacturing Capacity
Utilization . 10/71.
Revision of Bank Credit Series. 12/71.
Assets and Liabilities of Foreign Branches of
U.S. Banks. 2/72.
Bank Debits, Deposits, and Deposit Turnover—
Revised Series. 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.
One-Bank Holding Companies Before the 1970
Amendments. 12/72.
Yields on Recently Offered Corporate Bonds.
5/73.
Federal Fiscal Policy, 1965-72. 6/73.
Capacity Utilization in Major Materials Indus
tries. 8/73.
Credit-Card and Check-Credit Plans at Commer
cial Banks. 9/73.
RateS on Consumer Instalment Loans. 9/73.
New Series for Large Manufacturing Corpora
tions. 10/73.
Money Supply in the Conduct of Monetary
Policy. 1/73.
U.S. Energy Supplies and Uses, Staff Economic
Study by Clayton Gehman. 12/73.
Recent Developments in the U.S. Balance of
Payments. 4/74.
Capacity Utilization for Major Materials: Re
vised Measures. 4/74.
Numerical Specifications of Financial Variables
and Their Role in Monetary Policy. 5/74.
Banking and Monetary Statistics, 1973. Selected
series of banking and monetary statistics for 1973
only. 3/74 and 7/74.
Inflation and Stagnation in Major Foreign In
dustrial Countries. 10/74.
Revision of the Money Stock Measures and Mem
ber Bank Deposits. 12/74.
Changes in Time and Savings Deposits at Com
mercial Banks, April-J uly 1974. 1/75.
U.S. International Transactions in 1974. 4/75.
Monetary Policy in a Changing Financial Envir
onment: Open Market Operations in 1974.
4/75.
The Structure of Margin Credit. 4/75.
Changes in Bank Lending Practices, 1974. 4/75.
New Statistical Series on Loan Commitments at
Selected Large Commercial Banks. 4/75.
A
92
F e d e r a l R e s e r v e B u lle t in □ A p r il 1 9 7 5
Index to S ta tis tic a l Tables
References are to pages A-2 through A-85 although the prefix “ A” is omitted in this index
(For list of tables published periodically, but not monthly, see inside back cover)
ACCEPTANCES, bankers, 9, 25, 27
Agricultural loans of commercial banks, 16, 18, 78
Assets and liabilities (See also Foreigners):
Banks, by classes, 14, 16, 17, 18, 30, 78
Federal Reserve Banks, 10
Nonfinancial corporations, current, 41
Automobiles:
Consumer instalment credit, 45, 46, 47
Production index, 48, 49
BANK credit proxy, 13
Bankers balances, 16, 17, 20, 80
(See also Foreigners, claims on, and liabilities to)
Banking and monetary statistics for 1974, 78-85
Banks and branches, number, by class and State, 76
Banks for cooperatives, 38
Bonds (See also U.S. Govt, securities):
New issues, 38, 39, 40
Yields and prices, 28, 29
Branch banks:
Assets, foreign branches of U.S. banks, 70
Liabilities of U.S. banks to their foreign branches
and foreign branches of U.S. banks, 22, 71, 82
Number, by class and State, 77
Brokerage balances, 69
Business expenditures on new plant and equipment, 41
Business indexes, 50
Business loans (See Commercial and industrial loans)
CAPACITY utilization, 50
Capital accounts:
Banks, by classes, 14, 17, 22, 82
Federal Reserve Banks, 10
Central banks, 60, 75
Certificates of deposit, 22, 82
Commercial and industrial loans:
Commercial banks, 13, 16, 83, 85
Weekly reporting banks, 18, 23, 78
Commercial banks:
Assets and liabilities, 13, 14, 16, 17, 18, 78
Consumer loans held, by type, 45
Deposits at, for payment of personal loans, 24
Loans sold outright, 25
Number, by classes, 14, 76
Real estate mortgages held, by type of holder and
property, 42-44
Commercial paper, 23, 25, 27
Condition statements (See Assets and liabilities)
Construction, 50, 51
Consumer credit:
Instalment credit, 45, 46, 47
Noninstalment credit, 45
Consumer price indexes, 50, 53
Consumption expenditures, 54, 55
Corporations:
Profits, taxes, and dividends, 41
Security issues, 39, 40
Security yields and prices, 28, 29
Cost of living (See Consumer price indexes)
Currency and coin, 3, 16
Currency in circulation, 3, 12
Customer credit, stock market, 29, 30
DEBITS to deposit accounts, 11
Debt (See specific types of debt or securities)
Demand deposits:
Adjusted, commercial banks, 11, 13, 17
Banks, by classes, 14, 17, 20, 21, 81
Ownership by individuals, partnerships, and cor
porations, 24
Subject to reserve requirements, 13
Turnover, 11
Deposits (See also specific types of deposits):
Accumulated at commercial banks for payment of
personal loans, 24
Banks, by classes, 14, 17, 20, 21, 30, 81
Federal Reserve Banks, 10, 72
Subject to reserve requirements, 13
Discount rates (See Interest rates)
Discounts and advances by Reserve Banks (See Loans)
Dividends, corporate, 41
EMPLOYMENT, 50, 52
FARM mortgage loans, 42
Federal agency obligations, 9, 10, 11
Federal finance:
Receipts and outlays, 32, 33
Treasury operating balance, 32
Federal funds, 5, 16, 18, 21, 27, 78, 82
Federal home loan banks, 37, 38
Federal Home Loan Mortgage Corporation, 37, 42, 43
Federal Housing Administration, 42, 43, 44
Federal intermediate credit banks, 37, 38
Federal land banks, 37, 38, 42
Federal National Mortgage Assn., 37, 38, 42, 43, 44
Federal Reserve Banks:
Condition statement, 10
U.S. Govt, securities held, 2, 10, 11, 34, 35
Federal Reserve credit, 2, 4, 10, 11
Federal Reserve notes, 10
Federally sponsored credit agencies, 37, 38
Finance companies:
Loans, 18, 46, 47
Paper, 25, 27
Financial institutions, loans to, 16, 18, 78
Float, 2
Flow of funds, 56, 57
Foreign:
Currency operations, 9, 10
Deposits in U.S. banks, 3, 10, 17, 21, 72, 81
Exchange rates, 75
Trade, 59
Foreigners:
Claims on, 66, 67, 68, 72, 73, 74
Liabilities to, 22, 61, 62, 64, 65, 72, 73,
74, 82
GOLD:
Certificates, 10
Earmarked, 72
Reserves of central banks and govts., 60
Stock, 2, 59
Government National Mortgage Assn., 42
Gross national product, 54, 55
A
93
References are to pages A-2 through A-85 although the prefix “ A” is omitted in this index
HOUSING permits, 50
Housing starts, 51
Production, 48, 49, 50
Profits, corporate, 41
INCOME, national and personal, 54, 55
Industrial production index, 48, 49, 50
Instalment loans, 45, 46, 47
Insurance companies, 31, 34, 35, 42, 44
Insured commercial banks, 14, 16, 17, 24, 76
Interbank deposits, 14, 20
Interest rates:
j
Bonds and stock yields, 28
Business loans of banks, 26
Federal Reserve Banks, 6
Foreign countries, 74, 75
Money market rates, 27
Mortgage yields, 43, 44
Prime rate, commercial banks, 26
Time and savings deposits, maximum rates, 8
International capital transactions of U.S., 61-74
International institutions, 60-64, 66, 67-69 , 73
Inventories, 54
Investment companies, issues and assets, 40
Investments (See also specific types of investments):
Banks, by classes, 14, 16, 19, 30, 79, 80
Commercial banks, 13
Federal Reserve Banks, 10, 11
Life insurance companies, 31
Savings and loan assns., 31
REAL estate loans:
Banks, by classes, 16, 18, 30, 42, 79
Mortgage yields, 43, 44
Type of holder and property mortgaged, 42-44
Reserve position, basic, member banks, 5
Reserve requirements, member banks, 7
Reserves:
Central banks and govts., 60
Commercial banks, 17, 20, 22, 80, 82
Federal Reserve Banks, 10
Member banks, 3, 4, 13, 17
U.S. reserve assets, 59
Residential mortgage loans, 43, 44
Retail credit, 45, 46, 47
Retail sales, 50
LABOR force, 52
Life insurance companies (See Insurance companies)
Loans (See also specific types of loans):
Banks, by classes, 14, 16, 18, 30, 78, 79
Commercial banks, 13, 14, 16, 18, 23, 25, 26,
78, 79, 83, 85
Federal Reserve Banks, 2, 4, 6, 10, 11
Insurance companies, 31, 44
Insured or guaranteed by U.S., 42, 43, 44
Savings and loan assns., 31
MANUFACTURERS:
Capacity utilization, 50
Production index, 49, 50
Margin requirements, 8
Member banks:
Assets and liabilities, by classes, 14, 16, 17
Borrowings at Federal Reserve Banks, 4, 10
Number, by classes, 14, 76
Reserve position, basic, 5
Reserve requirements, 7
Reserves and related items, 2, 4, 13
Mining, production index, 49
Mobile home shipments, 51
Money market rates (See Interest rates)
Money stock and related data, 12
Mortgages (See Real estate loans and Residential mort
gage loans)
Mutual funds (See Investment companies)
Mutual savings banks, 20, 30, 34, 42, 44,
76, 81
NATIONAL banks, 14, 24, 76
National defense expenditures, 33
National income, 54, 55
Nonmember banks, 15, 16, 17, 24, 76
OPEN market transactions, 9
PAYROLLS, manufacturing index, 50
Personal income, 55
Prices:
Consumer and wholesale commodity, 50, 53
Security, 29
Prime rate, commercial banks, 26
SAVINGS.
Flow of funds series, 56, 57
National income series, 54, 55
Savings and loan assns., 31, 35, 42, 44
Savings deposits (See Time deposits)
Savings institutions, principal assets, 30, 31
Securities (See also U.S. Govt, securities):
Federally sponsored agencies, 37, 38
International transactions, 68, 69
New issues, 38, 39, 40
Yields and prices, 28, 29
Special Drawing Rights, 2, 10, 58, 59
State and local govts.:
Deposits, 17, 20, 81
Holdings of U.S. Govt, securities, 34, 35
New security issues, 38, 39
Ownership of securities of, 16, 19, 30, 80
Yields and prices of securities, 28, 29
State member banks, 15, 24, 76
Stock market credit, 29, 30
Stocks (See also Securities):
New issues, 39, 40
Yields and prices, 28, 29
TAX receipts, Federal, 33
Time deposits, 8, 13, 14, 17, 21, 22, 81
Treasury currency, Treasury cash, 2, 3
Treasury deposits, 3, 10, 32
Treasury operating balance, 32
UNEMPLOYMENT, 52
U.S. balance of payments, 58
U.S. Govt, balances:
Commercial bank holdings, 17, 20, 81
Member bank holdings, 13
Treasury deposits at Reserve Banks, 3, 10, 32
U.S. Govt, securities:
Bank holdings, 14, 16, 19, 30, 34, 35, 79
Dealer transactions, positions, and financing, 36
Federal Reserve Bank holdings, 2, 10, 11, 34, 35
Foreign and international holdings, 10, 66, 68, 72
International transactions, 66, 68
New issues, gross proceeds, 39
Open market transactions, 9
Outstanding, by type of security, 34, 35
Ownership, 34, 35
Yields and prices, 28, 29
Utilities, production index, 49
VETERANS Administration, 43, 44
WEEKLY reporting banks, 18-22, 78-82
YIELDS (See Interest rates)
A 94
The Federal Reserve System
B o u n d a rie s o f F e d e ra l R e s e rv e D is tric ts a n d T h e ir B ra n c h T e rrito rie s
August 1973
—
Boundaries of Federal Reserve Districts
----- Boundaries of Federal Reserve Branch
Territories
o
Board of Governors of the Federal
Reserve System
®
Federal Reserve Bank Cities
•
Federal Reserve Branch Cities
Federal Reserve Bank Facilities
G u id e to T a b u la r P re s e n ta tio n
SYMBOLS AND ABBREVIATIONS
Estimated
e
c
Corrected
Preliminary
P
r
Revised
Revised preliminary
rp
I, II,
III, IV Quarters
Not elsewhere classified
n.e.c.
A.R.
Annual rate
Monthly (or quarterly) figures adjusted for
S.A.
seasonal variation
N.S.A.
IPC
SMSA
A
L
S
U
*
Monthly (or quarterly) figures not adjusted
for seasonal variation
Individuals, partnerships, and corporations
Standard metropolitan statistical area
Assets
Liabilities
Source of funds
Uses of funds
Amounts insignificant in terms of the partic
ular unit (e.g., less than 500,000 when
the unit is millions)
(1) Zero, (2) no figure to be expected, or
(3) figure delayed
GENERAL INFORMATION
Minus signs are used to indicate (1) a decrease, (2)
a negative figure, or (3) an outflow.
A heavy vertical rule is used in the following in
stances: (1) to the right (to the left) of a total when
the components shown to the right (left) of it add to
that total (totals separated by ordinary rules include
more components than those shown), (2) to the right
(to the left) of items that are not part of a balance sheet,
(3) to the left of memorandum items.
“ U.S. Govt, securities” may include guaranteed
issues of U.S. Govt, agencies (the flow of funds figures
also include not fully guaranteed issues) as well as direct
obligations of the Treasury. “ State and local govt.”
also includes municipalities, special districts, and other
political subdivisions.
In some of the tables details do not add to totals
because of rounding.
The footnotes labeled Note (which always appear
last) provide (1) the source or sources of data that do
not originate in the System; (2) notice when figures
are estimates; and (3) information on other charac
teristics of the data.
TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY,
WITH LATEST BULLETIN REFERENCE
Quarterly
Issue
Sales, revenue, profits, and
dividends of large manu
facturing corporations __ Mar. 1975
Semiannually
Number of banking offices:
Analysis of changes...... Apr. 1975
On, and not on, Federal
Reserve Par List......... Feb. 1975
Page
A-83
A—
76
A-83
Annually
Bank holding companies:
Banking offices and depos
its of group banks, Dec.
31, 1973 ................. June 1974
July 1974
A-80—A-83
530
Banking and monetary statistics:
1973 .......................... July 1974
1974 .......................... Feb. 1975
Mar. 1975
Apr. 1975
A-80—A-82
A-84—A-85
A-79—A-82
A-78—A-85
Annually—Continued
Issue
Page
Banks and branches, number,
by class and State ....... Apr. 1974
Flow of funds:
Assets and liabilities:
1962-73 ............
Flows:
1965-73 .................
A-88—A-89
Oct. 1974 A-59.14—A-59.28
Oct. 1974
A-58—A-59.13
Feb. 1975
June 1974
A-80—A-81
A-84—A-85
June 1974
June 1974
Sept. 1974
A-84—A-93
A-94—A-99
A-80—A-85
Stock market credit .......... Feb. 1975
A-86—A-87
Income and expenses:
Federal Reserve Banks
Insured commercial banks
Member banks:
Calendar year ...........
Income ratios ...........
Operating ratios ......
S t a ti s ti c a l R e l e a s e s
LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE
Anticipated schedule of release dates for individual releases ..............................................
Issue
Dec. 1974
Page
A-86
@FedFRASER