Full text of Federal Reserve Bulletin : April 1979

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A P R IL 1 9 7 9

FEDERAL RESERVE

BULLETIN
U.S. International Transactions in 1978




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j




V O L U M E 65 □

NUM BER 4 □

A P R IL 1 9 7 9

FEDERAL RESERVE

BULLETIN
Board of Governors of the Federal Reserve System
Washington, D.C.

p u b l ic a t io n s c o m m it t e e

Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler
Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman
Michael J. Prell, Staff D irector
The Federal Reserve Bulletin is issued monthly under the direction of the statt publications committee. This committee
is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided
by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson.




Table o f Contents
299

U .S . I n t e r n a t io n a l Tr a n s a c t io n s
1978

in

The dollar came under considerable pres­
sure in the foreign exchange markets in
1978 although the U.S. trade deficit wid­
ened only slightly compared with 1977.
305 S taff S t u d ie s
According to the study, “ Impact of the
Dollar Depreciation on the U.S. Price
Level: An Analytical Survey of Empirical
Estimates,” the depreciation of the dollar
in exchange-rate markets in 1977 and 1978
raised the level of U.S. consumer prices
1 percent.
307 I n d u s t r ia l P r o d u c t io n
Output rose approximately 0.8 percent in
March.
308 S t a t e m e n t s

to

C o n g re ss

Governor J. Charles Partee testifies con­
cerning the administration of deposit rate
ceilings and their effects on the rate of
return available to small savers and rec­
ommends to the Congress that it act to
liberalize the asset powers of thrift institu­
tions and exempt federally insured depos­
itary institutions from state usury ceilings,
before the Commerce, Consumer and
Monetary Affairs Subcommittee of the
House Committee on Government Opera­
tions, March 22, 1979.
312 Governor Philip E. Coldwell discusses the
views of the board on legislation dealing
with the release of Federal Open Market
Committee minutes to the public and gives
the board’s recommendatiQn that the form
of the detailed minutes be a lightly edited




transcript confined to substantive commit­
tee discussions relating to economic and
financial matters and to monetary policy;
Governor Coldwell also gives the board’s
support to proposed legislation to make the
term of the chairman of the board begin
one year after the inauguration of the
President although the board does not
favor a similar coterminous term for the
vice chairman, before the Subcommittee
on Domestic Monetary Policy of the
House Committee on Banking, Finance
and Urban Affairs, April 4, 1979.
315 Governor Partee explains why the board
cannot support the proposal to lower the
minimum denomination on money market
certificates to $1,000; offers support for
a proposed five-year, floating-ceiling cer­
tificate; and recommends that the asset
powers of thrift institutions be liberalized
including the authorization for nationwide
variable-rate mortgages, before the Sub­
committee on Financial Institutions of the
Senate Committee on Banking, Housing
and Urban Affairs, April 11, 1979.
321 A n n o u n c e m e n t s
Issuance in final form of portions of Reg­
ulation E relating to consumer protection
under two sections of the Electronic Fund
Transfer Act. (See Law Department.)
Revocation of Regulation S, which gov­
erned the board’s power to regulate and
examine banking services performed for
state-chartered member banks by outsid­
ers. (See Law Department.)
Changes in board staff.
Publication of a revised list of over-the-

to instruct the manager to direct open
market operations toward maintaining the
weekly average federal funds rate at about
the current level, provided that over the
February-March period the annual rates of
growth of M-1 and M-2, given approxi­
mately equal weight, appeared to be
within ranges of 3 to 7 percent and 5 to
9 percent respectively. The committee
agreed that if growth of M-1 and M-2 for
the two-month period appeared to be out­
side the indicated limits, the manager was
promptly to notify the chairman, who
would then consult with the committee to
determine whether the situation called for
supplementary instructions.

counter stocks that are subject to the
board’s margin regulations.
Proposed changes in Regulation E regard­
ing certain disclosures to all consumers
with electronic fund transfer cards. Exten­
sion of deadline for comment on proposed
establishment of international banking fa­
cilities in New York City. Proposed
measures to help individuals obtain a
higher rate of return on their savings.
Proposed uniform policy for determining
how bank examiners should classify past
due consumer installment loans held by
commercial banks.
Admission of three state banks to mem­
bership in the Federal Reserve System.

336 L a w D e p a r t m e n t

325 R e c o r d

Implementation of Regulation E; rescis­
sion of Regulation S; amendments to
Regulations BB, Q, and Z; various rules
and bank holding company and bank
merger orders; and pending cases.

o f P o l ic y A c t io n s of th e
F e d e r a l O p e n M a r k e t C o m m itte e

At the meeting on February 6, 1979, the
committee decided both to lower the
ranges for growth of the monetary aggre­
gates over the year ahead and to widen
them slightly, reflecting in part special
factors expected to influence monetary
growth and uncertainties with respect to
the magnitude of their impact. For the
period from the fourth quarter of 1978 to
the fourth quarter of 1979, the committee
adopted a range of IV2 to AV2 percent for
M-1. After allowance for a dampening
effect of about 3 percentage points pro­
jected to result from the further shifts in
funds from demand deposits to savings
accounts with automatic transfer facilities,
that range allowed for the possibility of
a significant deceleration of growth from
the pace of recent years. The ranges
adopted for M-2 and M-3 were 5 to 8
percent and 6 to 9 percent respectively.
The associated range for the growth of
commercial bank credit was reduced to IV2
to W /2 percent.
With respect to policy for the period
immediately ahead, the committee decided




Al

Fin a n c ia l

and

B u sin ess S ta t ist ic s

A3 Domestic Financial Statistics
A46 Domestic Nonfinancial Statistics
A54 International Statistics
A69 G uid e
and

to T a b u l a r P r e s e n t a t io n
S t a t ist ic a l R e l e a se s

A70 B o a r d

of

G overnors

and

A72 O p e n M a r k e t C o m m it t e e

S taff
and

S ta ff ;

A d v is o r y C o u n c il s

A73 Fe d e r a l R e se r v e B a n k s , B r a n c h e s ,
and

O ffices

A74 Fe d e r a l R e se r v e B o a r d P u b l ic a t io n s
A76 I n d e x
A78 M a p

to

of

S t a t ist ic a l T a b l e s

F e d e r a l R e se r v e S y s t e m

U .S. In tern a tio n a l T ransactions in 1978
This article was p repared by A llen B. Frankel
of the U.S. International Transactions Section
of the D ivision of International Finance.

Although for the year as a whole the U.S. trade
deficit widened slightly in 1978 compared with
1977, the rate of deficit declined during the year.
The major factor working to reduce the deficit
during the year was a gain in U.S. exports,
reflecting the pickup in economic activity
abroad. In spite of the declining trade deficit,
however, the dollar came under considerable
pressure in the foreign exchange markets.
The U.S. and other governments resisted the
recurring bouts of dollar weakness during 1978
by purchasing large amounts of dollars in the
foreign exchange markets. As in 1977, the in­
vestment of the dollars acquired through such
purchases was concentrated in U.S. Treasury
securities. Once again, the U.S. private sector
increased its outstanding net financial claims
against the rest of the world. Most of the in­
crease was in the net claims of U.S. banking
offices on nonresidents, financed largely by a
rise in borrowings by banks in the U.S. money
market.
The downward pressure on the dollar in
foreign exchange markets that had begun in
September 1977 continued into the first quarter
of 1978. Then, after a respite in the spring, the
dollar came under renewed downward pressure
in exchange markets several more times during
the year. It reached a low point in late October
just before the announcement of a dollar-support
package that included domestic monetary ac­
tions and the mobilization of resources for the
U.S. portion of coordinated U.S. and foreign
intervention in the foreign exchange markets.
From December 1977 to the end of October
1978, the trade-weighted value of the dollar
against 10 major currencies declined about 17
percent; declines against the Swiss franc, the




Japanese yen, and the German mark— three of
those currencies— were much larger.
Following the November 1 announcement, the
exchange value of the dollar rose sharply (10
percent) to about the average level of August
and September. Even so, the market remained
tentative; and the announcement by the Organi­
zation of Petroleum Exporting Countries
(OPEC) on December 17 of an increase in oil
prices in 1979 that was somewhat larger than
expected triggered renewed selling pressure.
Since the turn of the year, the dollar has
strengthened.
M e r c h a n d is e Tr a d e

From the mid-1960s through the early 1970s,
the U.S. merchandise trade balance moved
gradually from surplus to deficit (chart 1). This
movement was interrupted during the 1974—75
worldwide economic slowdown: because the
United States suffered a disproportionately
sharp economic contraction, the trade balance
swung into surplus in 1975, despite an enor­
mous increase in U.S. outlays for imported oil.
The surplus proved short-lived; subsequent
economic recovery was stronger here than
abroad, pushing the United States much closer
to full capacity utilization, and the trade deficit
1. U.S. balances on trade and current account
Billions of dollars

300

Federal Reserve Bulletin □ April 1979

increased steeply from 1976 through early
1978.
Although the trade deficit in 1978, at $34 bil­
lion, was about $3 billion larger than in 1977,
it showed substantial improvement during the
year (table 1). From a peak annual rate of $48
billion in the first quarter of 1978, it narrowed
to about $25 billion in the fourth quarter, re­
sponding to developments in both imports and
exports.
Two special factors figured in the narrowing
of the trade deficit. First, the net demand for
exports of U.S. agricultural commodities was
stimulated by poor harvests in the Southern

Hemisphere. The volume of such exports rose
nearly 25 percent from the fourth quarter of
1977 to the fourth quarter of 1978. Second,
U.S. oil imports fell because higher levels of
U.S. petroleum demand were more than met by
Alaskan production and by a drawing down of
inventories from their unusually high levels at
the beginning of the year (chart 2).
More important than these special factors,
however, were the renewed strength of eco­
nomic activity abroad and the improved com­
petitiveness of U .S. goods resulting from the
substantial depreciation of the U.S. dollar that
had begun in the fall of 1977. From the fourth

1. U .S . international tran saction s1
Billions of dollars

1977
Transaction
Current account .....................................
Merchandise trade balance ......................
Exports .................................................
Imports .................................................
Investment income, net2 .........................
Other services .........................................
Unilateral transfers, private and
government ......................................
Private capital flows ..............................
Bank-reported capital, net (outflow,—) ...
U.S. net purchase (—) of foreign securities
Foreign net purchase (+) of U.S. Treasury'
securities ...........................................
Foreign net purchase (+) of other
U.S. securities ..................................
U.S. direct investment abroad2 ...............
Foreign direct investment in the United
States2 ..............................................
Other corporate capital flows, net ............
Foreign official assets in the U.S.
(increase, +) ....................................
By type
U.S. Treasury securities ......................
Other U.S. government-related
liabilities3 .........................................
Other ....................................................
By area
Industrial countries4 ............................
Members of OPEC ..............................
Other countries .....................................
U.S. government foreign assets, net
(increase,—) .....................................
Reserve position in IMF .........................
Convertible currencies and other reserve
assets ...............................................
U.S. government foreign credits and other
claims, net ........................................
Statistical discrepancy ...........................

1978 p

Q4

Ql

Q2

-15.3
-31.1

-16.0
-34.1
141.8
-176.0
19.9
3.3

—
6.1
-9.4
29.6
-39.0
3.8
.5

-7.6
-11.9
30.8
-42.7
4.9
.7

-3.3
-7.9
35.3
-43.1
4.6
1.2

-3.7
-8.0
36.5
-44.5
4.9
.7

120.6

-151.7
17.5
3.0

1

Q3

Q4P
-1.3
-6.4
39.3
-45.7
5.6
.7

-4.7

-5.1

-1.1

-1.3

-1.3

-1.3

-1.2

-17.0
-4.7
-5.4

-25.7
-17.1
-3.4

-9.3
-5.6
-.7

-12.1
-6.6
-.9

.8

1.3
-1.1

1.8

2.3
-.5

-16.2
-14.2
-.9

.6

2.3

-.3

.9

.8

-1.1

1.6

2.9
-12.2

2.9
-15.4

-3.2

.8

.5
-5.0

- ^ .0

1.3

.5
-2.7

-3.7

3.3
-1.4

5.6

.5

.8

—.6

- .8

-1.7

1.9
.5

2.2
1.0

.7
-.3

37.1

34.0

15.5

15.8

-5.7

4.9

19.0

30.3

24.1

12.9

13.0

-5.7

3.0

13.8

4.0
2.9

3.5
6.4

1.4
1.3

.9
1.9

-.1
.1

.8
1.0

1.9
3.4

28.9
6.7
1.5

34.6
- .6
*

13.9

13.2

1.0
.6

2.0
.6

-2.2
-2.8
-.7

6.4
-1.6

17.2
1.9
*

-3.9
-.3

-3.7
4.2

- .8

-.7
.3

- .8

-1.4

.1

-3.3

-.1

-3.7

-4.7

- .8

-.9

-.9

11.4

.8

4.5

9.1

1. Current-account items are seasonally adjusted; seasonal
factors are no longer calculated for most capital transactions.
Data afe from U.S. Department of Commerce, Bureau of
Economic Analysis. Details may not add to totals because of
rounding.
2. Includes reinvested earnings.




1978

1977

*
*

.1

.6

.2

-.9
3.3

-.1

-.1

-3.1

-1.2

-1.5

-1.1

-1.6

- .6

.4

3. Includes debt securities of U.S. government corporations
and agencies and U.S. government liabilities associated with
transactions arranged with or through foreign official agencies.
4. Western Europe, Canada, Japan, Australia, New Zea­
land, and South Africa.
* Less than $50 million.

U.S. International Transactions

2. U.S. demands for petroleum products

In v e s t m e n t In c o m e

M illions of barrels per

Imports
20

p Total

15
10

5
0

1974________________ 1976________________ 1978

Imports as a percent of total demand

1974

1975

1976

1977

1978

39.5

39.8

44.8

50.5

46.2

quarter of 1977 to the fourth quarter of 1978,
the volume of U.S. nonagricultural exports
showed a 16 percent increase, in contrast with
a slight decline in the preceding year. The fall
in the price-adjusted value of the dollar, shown
in chart 3, is expected to have a progressively
larger impact in 1979. The value of exports
both to the major industrialized countries and
to the developing countries of Latin America,
Asia, and Africa increased one-third from the
fourth quarter of 1977 to the fourth quarter of
1978.
For nonoil imports, the 8 percent rise in vol­
ume in 1978, on top of very large increases in
the two previous years, reflected the continued
strength of the U.S. economy. The advance
was spread over various major commodity cate­
gories: large increases in volume were recorded
for industrial supplies, consumer goods, and
foods.
3. U.S. international price competitiveness

“CPI-adjusted dollar” is “weighted-average dollar” multi­
plied by relative consumer prices (U.S. divided by foreign
consumer prices).




301

The U.S. current-account deficit in 1978 was
$16 billion, about $1 billion larger than in
1977. As in other recent years, net receipts
from service transactions were a substantial off­
set to the merchandise trade deficit. Earnings
on the net international investments of the
United States contributed $20 billion to the sur­
plus of service transactions in 1978, $2.5 bil­
lion more than in 1977 (table 1). This rise ap­
pears to be attributable partly to the impact of
the dollar’s depreciation on the dollar value of
the foreign currency earnings of foreign subsid­
iaries of U.S. corporations.
U.S. assets abroad generated income of
$41.5 billion in 1978, not quite $10 billion
more than in 1977. Earnings of foreign-owned
assets in the United States were $21.5 billion
in 1978, up $7 billion from 1977. Earnings on
foreign direct investment in the United States
increased $1 billion in 1978 to $4 billion.
These earnings still accounted for less than
one-fifth of total foreign investment income
earned in the United States. Slightly less than
half the increase in the income of foreignowned assets in the United States was ac­
counted for by a rise in U .S. government pay­
ments, primarily interest payments on U.S.
Treasury securities held by foreign govern­
ments. The increase reflects both higher U.S.
interest rates and a $57 billion increase in
foreign holdings of U.S. Treasury securities
over 1977 and 1978.

C a p it a l Fl o w s

In 1978, as in 1977, a large deficit in the U.S.
current account was accompanied by an even
larger increase in foreign official assets in the
United States (chart 4). For the two years com­
bined, foreign official assets in the United
States rose by $71 billion, some $40 billion
more than the combined current-account defi­
cits for those two years.
Recorded transactions resulted in a $26 bil­
lion net outflow of private capital in 1978, $9
billion more than in 1977. Partly offsetting this
increase was a $12 billion swing in unrecorded

302

Federal Reserve Bulletin □ April 1979

4. Financial flows in
U.S. international transactions1

Changes in holdings of
U. S. Treasury securities2

Billions of dollars, seasonally adjusted

Billions of dollars

Inflow
20
Foreign official
assets in the U.S,
10

C urrent account
(Sign reversed) NPt-j

Private capital
transactions, net
Outflow

1. U.S. government-related transactions are excluded.
2. Changes in holdings of Federal Reserve Banks are ex­
cluded.
“Private capital transactions, net” includes statistical dis-

crepancy (mostly unrecorded capital transactions). “Foreign
private investors” includes international and regional organi­
zations and also notes denominated in German marks sold to
private German residents in December 1978.

transactions— from a small net outflow in 1977
to a large net inflow in 1978 (table 1).

The large-scale foreign official investment in
short-term Treasury securities in the first and
fourth quarters of 1978 (chart 4) tended to
depress yields on Treasury securities relative to
those on other dollar-denominated securities,
particularly in the maturity range of six months
and under. These official purchases of both new
and seasoned short-term Treasury securities had
the effect of lengthening the average maturity
of the holdings of other investors. The public
appears to have substituted short-term, private
money market instruments (such as bank-issued
certificates of deposit) for Treasury bills.

O f f ic ia l C a p i t a l T r a n s a c t i o n s
The increase in foreign official assets in the
United States in 1978 was more than accounted
for by the increased holdings of the industrial
countries. This official inflow was associated
with large purchases of dollars by foreign cen­
tral banks and additions to dollar holdings as
a counterpart to U.S. drawings on swap lines
to finance intervention sales of foreign curren­
cies. The $1 billion drop in OPEC official hold­
ings, after a $7 billion rise in 1977, appears
to have been a consequence mainly of the re­
duced current-account surpluses of several of
the countries rather than an indication of any
marked change in their investment behavior.
Foreign official institutions have continued to
demonstrate a strong preference for U.S. Treas­
ury securities over other dollar-denominated fi­
nancial assets. The increase in their holdings
of such securities amounted to $24 billion in
1978 (table 1), slightly less than three-quarters
of the official net capital inflow during the year;
it was $6 billion more than the increase re­
corded for all U.S. private investors.




P r iv a t e C a p it a l Tr a n s a c t io n s
Bank-reported private capital transactions re­
sulted in a $17 billion net outflow in 1978,
compared with the $5 billion net outflow for
1977 (table 1). The fourth-quarter surge in
lending to foreigners by domestic banking of­
fices may well have been associated with the
borrowing of dollars by bank customers in an­
ticipation of a possible depreciation of the dol­
lar (chart 5). The offset to this buildup in
private dollar-denominated debt was an increase
in official holdings of U.S. Treasury securities.

U.S. International Transactions

Strong foreign demand for short-term dollardenominated financing in the fourth quarter of
1978 was reflected in a 20 percent increase in
commercial and industrial loans to non-U.S.
residents at U.S. offices of both U.S.-owned
and foreign-owned banks, and in an increase
of more than 15 percent in bankers acceptances
created by U.S. banking offices for foreign ac­
counts. The expansion of acceptance financing
may have been associated with the acceleration
of the conversion of dollar-denominated trade
receivables into foreign currencies. Overall,
bank-reported claims on foreign nonbanks in­
creased more than $5 billion in the fourth quar­
ter. In addition, net advances to foreign banking
offices (including affiliated offices of U.S.
banks) increased $8 billion.
Data now available for bank-reported capital
flows in the first quarter of 1979 suggest a
strong reversal of the fourth-quarter pattern.
Funds returned to domestic banking offices
from abroad and holdings of U.S. Treasury se­
curities by foreign monetary authorities were
reduced (an official capital outflow), with U.S.
repayments of previous swap drawings ac­
counting for part of the reduction. This change
in the capital account was accompanied by a
narrowing of interest rate differentials between
Treasury securities and private money market
instruments and an easing of the demand by
banks for funds from domestic sources.
Most of the net increase in funds available
from abroad to domestic banking offices in
early 1979 took the form of transactions with

5. Bank-reported capital transactions
Billions of dollars

1976_____________ 1977 ___________ 1978

“Net funds supplied” are outflows; “Net funds raised” are
inflows.




303

U.S. banks’ own foreign offices. In part, this
inflow appears to have been funded by an in­
crease in deposits by U.S. residents (other than
banks) at the offshore banking offices of U.S.
banks. That is, part of the adjustment by U.S.
residents to high nominal U.S. interest rates
was to increase their holdings of higher-return
deposits in offshore banking offices— both di­
rectly, and indirectly through money market
mutual funds and short-term unit investment
trusts.
The swing to a large positive statistical dis­
crepancy in 1978 probably reflected changes in
unreported capital items rather than any sub­
stantial changes in the reporting of merchandise
or service transactions. It could also reflect, in
part, an increase in accounts payable (a net
capital inflow), as the higher interest rates pre­
vailing in 1978 may have made it attractive to
delay dollar payments to foreign suppliers.

D o l l a r -S u ppo rt P a c k a g e

On November 1, as part of the overall dollarsupport package, the government announced
that it would mobilize foreign currency re­
sources for possible intervention in foreign ex­
change markets. Balances of German marks
and Japanese yen were to be acquired through
a $3 billion drawdown of the U.S. reserve posi­
tion in the International Monetary Fund and
through a sale of a part of U.S. holdings of
special drawing rights for foreign currencies;
$1.4 billion equivalent of SDRs was sold for
balances of German marks and Japanese yen.
The government also announced that it would
issue to private foreign residents up to $10
billion equivalent in securities denominated in
foreign currencies. The first issue was in De­
cember and amounted to $1.6 billion equivalent
of German marks. Two additional issues total­
ing $2.5 billion, one denominated in Swiss
francs and a second in German marks, were sold
in the first quarter of 1979.
These financing activities did not affect the
supply of Treasury debt available in U.S. mar­
kets. Intervention sales of foreign currency bal­
ances (in the fourth quarter of 1978, $1.8 bil­
lion equivalent was sold) may affect the

304

Federal Reserve Bulletin □ April 1979

amount of Treasury debt held by the public
because the Treasury can use the dollars re­
ceived either to reduce the amount of Treasury
debt outstanding or to add to its cash balances.
The government also announced on No­
vember 1 that it would increase its gold sales
to 1.5 million ounces at each monthly auction
starting in December. This was five times the
amount offered monthly when sales were re­
sumed in May 1978 and twice the amount of­
fered in November. The stepup in the Treas­
ury’s gold sales tends to reduce both the mer­
chandise trade deficit (by reducing the net im­
portation of nonmonetary gold) and the federal
budget deficit.
Th e O u t l o o k
The lagged effects of the substantial changes in
dollar exchange rates that have already oc­
curred, along with somewhat stronger growth
abroad than in the United States, should result
in a continued decline in the U.S. trade deficit
in the months ahead. Relative changes in infla­
tion rates here and abroad this year are not ex­
pected to erode appreciably the improved com­
petitive position of U.S. industry. The currentaccount deficit should shrink at least as much
as the trade deficit.
The impact of recent events in Iran and the
recently announced increases in OPEC oil
prices will tend to offset some of the decline
in the U.S. current-account deficit that was
expected. Exports of U.S. goods to Iran, both
military and nonmilitary, will be reduced. Other
U.S. trading partners will also be affected both
by reduced exports to Iran and by a tighter




supply of more costly oil. Any reduction in the
rates of growth of these countries will, in turn,
reduce their demand for U .S. exports. While
these influences will, in part, be offset by an
increase in the demand for U.S. goods and
services as a result of higher earnings of oil-ex­
porting countries, the net effect is expected to
be negative. In any case, the generally strong
outlook for the U.S. external position has not
been fundamentally altered by these develop­
ments.
A reduction in the net inflow of capital to
the United States is implicit in the outlook for
a decline in the U.S. current-account deficit in
1979. In addition, the composition of the capi­
tal account is likely to be quite different from
what it was in 1978. Official capital inflows,
which were massive in both 1977 and 1978,
may be a much less significant part of total cap­
ital transactions this year. For a variety of rea­
sons, the United States is expected to attract
private capital. With an improved outlook for
the dollar, foreign investors will have an incen­
tive to rebalance their positions by purchasing
dollar-denominated assets. The improvement in
U.S. competitiveness may have also increased
the appeal of equity investments in U .S. in­
dustry to foreign investors.
The same forces that will tend to move the
United States toward a smaller current-account
deficit— the ongoing effects of last year’s de­
preciation of the dollar and relatively faster
growth abroad— will tend to move those devel­
oped countries with large current-account sur­
pluses closer to balance. The net result may be
a year in which fewer strains are placed on the
international financial system.
□

305

Staff Studies
The staffs o f the B o a rd o f G overn ors o f the
F ederal R e se rv e System an d o f the F ederal
R e serve B anks undertake stu dies that co v er a
w ide ran ge o f econ om ic an d finan cial su b jec ts,
an d oth er staff m em bers p re p a re p a p e r s re la te d
to such su bjects. In som e instances the F ederal
R e se rv e S ystem finances sim ila r stu dies by
m em bers o f the aca d em ic profession .
From tim e to tim e the results o f stu dies that
a re o f g en era l in terest to the pro fessio n s an d
to oth ers are su m m arized— o r they m ay be
p rin te d in full— in this section o f the F e d e r a l
R eserv e B u lle t i n .

S

S

tud y

Im

pact

A

A

n

In all ca ses the a n a lyses and con clusions se t
forth are those o f the authors an d d o not n eces­
sa rily in dicate con cu rrence b y the B o a rd o f
G o vern o rs, by the F ed era l R e se rv e B a n k s, o r
by the m em bers o f th eir staffs.
Single co p ies o f the full text o f each o f the
stu dies o r p a p e r s su m m arized in the B u l l e t i n
are a va ila b le in m im eo g ra p h ed form . The list
o f F ed era l R e se rv e B o a rd p u b lica tio n s a t the
back o f each B u l l e t i n includes a se p a ra te
section en titled “ S ta ff S tu d ie s ” th at lists the
stu dies fo r which co p ies are cu rrently a va ila b le
in m im eograph ed form .

um m ary

of

the

D

n a l y t ic a l

ollar

S

D

urvey

e p r e c ia t io n
of

Em

p ir ic a l

on

E

th e

U .S . P r i c e L e v e l :

s t im a t e s

Peter H ooper and Barbara R. Lowrey — Staff, B oard of Governors
Prepared as a staff paper in early 1979

The decline in the foreign currency value of the
dollar over the past two years and the increase
in U.S. price inflation more recently have raised
questions concerning the extent to which the
dollar depreciation has raised U.S. prices. A
number of estimates of the impact of changes
in exchange rates on U.S. domestic prices have
been made by the staff of the Board of Gover­
nors and by others. This paper surveys and
analyzes both specific estimates that have been
made and models that are capable of addressing
this question.
Two basic analytical approaches are identi­
fied. The first is partial-equilibrium analysis,
which treats the exchange rate as determined
exogenously and includes the direct and indirect
effects of exchange-rate changes on domestic
prices. Models using this approach range from




single-price equations to fully specified structur­
al models in which it is possible to assess the
price effects of a depreciation under alternative
assumptions about macroeconomic policy. The
second approach is general-equilibrium anal­
ysis, which treats the exchange rate as deter­
mined endogenously and allows for consid­
eration of both the independent price effects of
factors that caused the exchange-rate change and
the feedbacks from changes in domestic prices
and other variables to the exchange rate itself.
In this framework, price changes should be
viewed as associated with rather than directly
caused by changes in exchange rates.
The study also illustrates how the estimated
sensitivity of U.S. prices to changes in the
exchange rate can vary depending upon (1) the
manner in which the dollar’s average foreign

306

Federal Reserve Bulletin □ April 1979

exchange value is measured, (2) the assumed
impact of exchange rate changes on oil prices,
and (3) the macroeconomic policy response to
the depreciation.
Based on an assessment of the empirical work
and models surveyed, the authors conclude that
the depreciation of the dollar in 1977 and 1978
had raised the level of U.S. consumer prices
by 1 percent by the end of 1978, under the




assumption that U.S. gross national product
would have followed the same path in the ab­
sence of the depreciation. If the depreciation is
sustained, its eventual full impact could raise
prices by 2-1/4 to 2-2/3 percent above the level
they otherwise would have been, depending
upon the extent to which the recent oil price
increases can be associated with the deprecia­
tion.
□

307

Industrial P roduction
R e le a se d fo r pu b lica tio n A p r il 13

Industrial production increased an estimated 0.8
percent in March, after two months in which
the level of total output was almost unchanged.
Advances were widespread among products and
materials. Rebounds from the effects of weather
contributed significantly to substantial increases
in production of motor vehicles and parts, steel,
and coal. These increases accounted for a large
part of the rise in the total index. Production
in March was 0.9 percent higher than that of
December 1978, equivalent to an annual rate
of growth during the first quarter of 3.5 percent.
At 152.2 percent of the 1967 average, the index
for March is 8.0 percent above that of a year
earlier.
Output of consumer goods increased 0.8 per­
cent in March, reflecting a rebound in automo­
tive products, a moderately large increase in
home goods, and a modest gain in consumer
nondurable goods such as food. The rate of auto
assemblies increased about 6 percent to an an­
nual rate of 9.4 million units. Over the first
quarter of 1979 output of home goods, including
appliances, TVs, carpeting, furniture, and mis­
cellaneous items, has risen sharply, but the
level of output in March was only modestly
above that of last fall. Production of business
equipment advanced moderately in March, as it
had in the two preceding months, with contin­
ued strength evident in the output of manufac­
turing, power, and commercial equipment and

Seasonally adjusted, ratio scale, 1967=100

1973

1975

1977

1979

1973

1975

1978

1979

Nov.

1979

Mar.e

Oct.

Dec.

Jan.

151.0

152.2

.6

.6

.9

.0

.1

.8

Products, total ...................
Final products ................
Consumer goods .........
Durable ..................
Nondurable .............
Business equipment ...
Intermediate products __
Construction supplies
Materials .............................

149.7
146.2
150.7
161.0
146.6
170.1
162.9
161.7
153.0

150.7
147.3
151.9
164.1
147.0
171.0
163.4
162.0
154.6

.3
.3

.5
.3
.3

.9

.2
.2
.0
- .6

.2
.2
.1
.1
- .1
.2

.7

pPreliminary.




eEstim ated.

.7
.6

.9
1.1

.1

.3
.2
.8

1.3
.9

.8
.6
.1
1.0

.3

.9

.6

1.6
1.1

.2

.7

.3

-.3

Feb.

Mar.

Feb.p
Total ..............................

.1
.8
- .1

1977

1979

Federal Reserve indexes, seasonally adjusted. Latest figures:
March. Auto sales and stocks include imports.

Percentage change from preceding month to—

1967 == 100
Industrial production

a large rise in output of transit equipment.
Business equipment production in March was
8.6 percent above that of a year earlier.
Production of materials advanced 1.0 percent
in March, after small declines in February and
January that were due in part to weather and
other production problems. Output of durable
materials increased sharply in March, reflecting
increases in basic metals and in parts for equip­
ment and consumer durable goods. Coal pro­
duction rose significantly but was below late
1978 levels.

.4
.3

- .2

N o t e . Indexes are seasonally adjusted.

.8
.8

1.9
.3
.5
.3
.2
1.0

Percentage
change
3/78
to
3/79
8.0

6.4
6.0

4.1
4.2
4.0
8.6

7.9
9.5
10.5

308

Statements to Congress
Statem ent by J. Charles P artee, M em ber, B oard
of G overnors of the Federal R eserve System ,
before the C om m erce, Consumer, and M one­
tary Affairs Subcommittee of the Committee on
Governm ent O perations, U.S. House of R ep re­
sentatives, M arch 22, 1979.

I am pleased to testify this morning on behalf
of the Federal Reserve Board concerning the
administration of deposit rate ceilings and their
effects on the rate of return available to small
savers. It has been nearly 13 years since the
Congress mandated the establishment of a coor­
dinated set of deposit rate ceilings by the federal
financial regulatory agencies. Most economists
believe that these ceilings are anticompetitive—
amounting to price fixing for the depositary in­
stitutions— and that they have a particularly
inequitable impact on the small saver. More­
over, though deposit rate ceilings may success­
fully restrict competition among depositary in­
stitutions, when interest rates are high they
cannot protect the institutions as a group from
exposure to loss of a significant amount of
savings business to open market instruments
attractive to the small saver.
Even though market developments are rapidly
undermining the efficacy of deposit rate ceiling
regulations, many of the factors that caused the
Congress to establish the framework for such
regulations in 1966 are still at work. Savings
and loan associations and mutual savings banks,
because of constraints on the kinds of assets they
hold, are still unable to pay market-oriented
rates of return on all deposit liabilities during
periods of high interest rates. Before the thrift
institutions can pay such rates, without jeopar­
dizing the financial solvency and stability of
individual institutions, reform of their asset
powers will be necessary. Nevertheless, the
board believes it important to make progress
whenever possible to restore rate flexibility to
the institutional deposit structure, and toward



this end it has favored a phase-out of rate ceiling
regulations over some reasonable period— say
five years or so.
In considering the actions that can be taken
by the federal financial regulators to move
toward a less constrained deposit ceiling rate
structure, I believe it is necessary to understand
the institutional and legislative framework in
which the current structure was originally es­
tablished. Developments over the past 13 years
underscore the complexity of the conflicting
issues surrounding Regulation Q-type ceilings,
which include not only equity for the small saver
but also the adequacy of mortgage credit flows,
competitive balance among various types of
depositary institutions, and the financial strength
and viability of some institutions. The financial
regulatory agencies have been forced, both by
law and economic necessity, to attempt to bal­
ance these conflicting goals, and hence have
been required to make trade-offs.
In mid-1966, as interest rates rose sharply,
many thrift institutions faced sizable deposit
outflows for the first time in the postwar period,
when consumers shifted their savings to higheryielding market investments and commercial
bank accounts. Savings and loan associations
and mutual savings banks thus faced the difficult
task of trying to meet the competition in deposit
markets while their earnings were constrained
by portfolios of long-term, slowly amortizing
mortgage assets that, on average, provided a net
return not much higher than the rates paid on
deposits at some commercial banks. Commer­
cial banks were not so hampered because their
portfolios were diversified, with an average ma­
turity considerably shorter than that of thrift
assets. The rates of return on commercial bank
portfolios were thus more responsive to market
yields and gave the banks greater flexibility to
pay competitive rates on deposits. With the
slackening in deposit flows at thrift institutions,
residential mortgage lending was sharply cur-

Statements to Congress

tailed at these institutions, and some savings and
loan associations and mutual savings banks
faced the specter of outflows that they could not
readily meet. It was in this environment that
the Congress enacted interest rate control legis­
lation (Public Law 89-597) in the fall of 1966,
authorizing the financial regulatory agencies to
establish an interrelated structure of deposit rate
ceilings.
Commercial bank earnings were not then—
nor are they now— a limiting factor in the regu­
lator’s ability to set maximum rates payable on
deposits. Thus, when establishing the initial
schedule of deposit rate ceilings in 1966, the
financial regulatory agencies attempted to deter­
mine the maximum rates that thrift institutions
could afford to pay, given their portfolio returns.
This schedule set the thrift institution ceilings.
The maximum rates payable by commercial
banks were then established at levels up to 1
percentage point below the thrift deposit ceil­
ings. This arrangement was intended to give
savings and loan associations and mutual sav­
ings banks a premium or differential to help
offset their competitive disadvantage vis-a-vis
commercial banks— a disadvantage that re­
sulted, in part, from their inability to offer a
full range of deposit and lending services to their
predominantly consumer customers.
At the time of enactment, deposit rate control
legislation was viewed as a temporary but nec­
essary measure to protect the short-run viability
of the thrift industry and to encourage an ade­
quate flow of credit to the mortgage market. In
this spirit, both the initial legislation and subse­
quent renewals have been of short duration,
never more than two years. Thus, every Con­
gress since 1966 has reconsidered deposit rate
ceilings, as will this Congress when the present
authority expires at the end of 1980.
Since 1966, the ceiling-rate structure has been
revised a number of times. Generally, such
action was precipitated by periods of disinter­
mediation when market interest rates rose well
above the deposit rate ceilings. The pressure of
higher market yields required upward adjust­
ments in ceiling rates if the institutions were
to be able to compete for deposits and sustain
the flow of residential mortgage credit.
These upward adjustments followed periods
during which thrift institution earnings had



309

strengthened again, reflecting in large measure
the increasing average return on assets as port­
folios turned over and higher-yielding mort­
gages were acquired. The resultant improve­
ment in the financial condition of thrift institu­
tions permitted the regulatory agencies to in­
crease deposit rate ceilings; however, thrift
earnings remained a constraint on the magnitude
of ceiling-rate adjustments. Even though the
individual increases in maximum rates payable
on deposits were moderate, they were followed
by significant reductions in the profitability of
savings and loan associations and mutual sav­
ings banks. And because the ceiling adjustments
were moderate, growth of deposits subject to
rate ceilings remained depressed as long as the
yield on alternative market instruments contin­
ued high.
Changes in regulatory ceilings have taken two
forms. Ceiling rates on existing account cate­
gories have been increased, and new deposit
instruments have been introduced. Of these ac­
tions, new deposit instruments have been by far
the most important. In 1970, 1973, 1974, and
1978 the federal regulatory agencies introduced
new longer-term time certificates with relatively
modest minimum denominations, in each in­
stance at ceiling rates above those prevailing on
existing accounts. This approach limited the
cost impact of ceiling-rate increases. The higher
rate on the new certificates was paid only to
those depositors willing to give up some liqui­
dity for additional yield. Cost increases occurred
only as such deposits expanded, in contrast to
increases in passbook ceiling rates, which would
apply to both new and existing accounts. The
1973 increase in the maximum rate payable on
passbook accounts, for example, led to a sharp
reduction in thrift earnings with little increase
in deposit growth. Thus, the desire of small
savers for a short-term deposit instrument pay­
ing market-oriented rates of return conflicts with
the necessity to permit the institutions to main­
tain and attract deposits in an environment of
high and rising market rates, without putting
undue pressure on earnings.
The introduction of successively longer-term
certificates has dramatically changed the matu­
rity structure of deposit liabilities of thrift insti­
tutions. When rate ceilings went into effect in
1966, 85 to 90 percent of thrift deposits were

310

Federal Reserve Bulletin □ April 1979

in passbook form. By mid-1978, only one-third
to one-half of total deposits outstanding were
in passbook accounts. Since savings and loan
associations and mutual savings banks hold
predominantly long-term assets, this maturity
lengthening has been desirable. Substantial
early withdrawal penalties have helped ensure
the stability of these longer-term deposits in
subsequent periods of rising rates, blunting po­
tential disintermediation.
Since ceilings on thrift institution accounts
were first imposed, there has been only one brief
period in which small savers were able to earn
a market-determined rate of return on a deposit
instrument. In July 1973 the regulatory agencies
suspended ceilings on four-year time deposits
with denominations of $1,000 or more. Re­
flecting grave doubts about the ability of thrift
institutions to meet such market competition
without severe financial difficulties, the Con­
gress within three months passed a resolution
terminating the experiment and mandating the
reimposition of ceiling rates on any time account
of less than $100,000. At the end of 1975, in
order to protect thrift institutions against the
possibility of other regulatory actions that might
unduly threaten their competitive position, the
Congress enacted legislation (Public Law 94200) prohibiting the financial regulatory agen­
cies from reducing ceiling-rate differentials on
all account categories in existence at that time
without the approval of both Houses of Con­
gress. Both of these congressional actions made
it abundantly clear that protection of thrift insti­
tutions and concern for the mortgage market
were still the dominant factors to be considered
in determining the structure of ceiling rates.
Meanwhile, the small saver has become in­
creasingly aware of alternative investments that
pay returns well in excess of deposit rate ceil­
ings when market yields are high. The public
has learned the relative ease with which market
securities— particularly Treasury and agency
issues— can be purchased. Moreover, innova­
tive instruments have been developed to attract
the deposits of the small saver, such as money
market mutual funds and unit investment trusts.
Shares in these funds are ordinarily quite liquid,
bear market rates of return, and are often avail­
able in minimum denominations of $1,000 or
less. In the last six months, such mutual funds



have attracted more than $9.5 billion, and it is
a reasonable presumption that a sizable share
of this flow might have gone to or remained
in depositary institutions if deposit rate ceilings
had been more competitive.
In late 1977 and early 1978, deposit inflows
began to slacken as market rates of interest
moved above regulatory ceilings. Recognizing
the threat of increasing disintermediation arising
from the growing public awareness of deposit
alternatives, the financial regulatory agencies on
June 1, 1978, introduced the six-month money
market certificate. This instrument represented
a significant change in the rate-ceiling structure,
providing institutions with a short-term instru­
ment whose ceiling varied with market rates.
The thrift institutions were thereby able to com­
pete for funds during periods of high interest
rates, and thus to sustain residential mortgage
credit flows at relatively high levels.
A minimum denomination of $10,000 was
established on the money market certifi­
cate— the same as is required on six-month
Treasury bills to which the rate ceiling is tied—
since it was considered that depositors with
relatively large amounts at stake would be the
ones most likely to shift into open-market in­
struments. The new certificate has proven to be
extraordinarily popular, providing many savers
with their first investment bearing a market-determined rate of return. But this new instrument
also has been a very costly source of funds for
the institutions. Even with the $10,000 mini­
mum denomination, the board staff estimates
that about half of the $116 billion of money
market certificates outstanding have remained in
lower-cost passbook or fixed-ceiling time ac­
counts. Indeed, the developing earnings pres­
sure on savings and loan associations and mu­
tual savings banks was a major motive underly­
ing the recent regulatory action to reduce some­
what the ceiling rates paid on money market
certificates. This was only the second time since
1966 that the regulatory authorities have re­
duced the ceiling rate on an account category,
the first occurring in 1973 when the Congress
mandated an end to the “ wild card” experi­
ment.
Lowering the minimum denomination on the
money market certificate or taking any other
action to provide more attractive deposit instru­

Statements to Congress

ments to the saver with less than $10,000, of
course, would serve to heighten the earnings
pressure on thrift institutions. After 13 years of
ceilings on deposit rates, the same set of prob­
lems prevailing in 1966 still constrains the op­
tions available to the regulators to increase rates
of return paid to small savers. The earnings of
thrift institutions are already being squeezed by
their effort to compete for funds in a high
interest rate period. Even though the average
return on mortgage portfolios at thrift institu­
tions is more than 2 Vi percentage points higher
than in 1966, inflation-induced increases in
market rates have amounted to more than 3 V2
percentage points in short-term markets and
about 4 percentage points in intermediate-term
markets over the same period. And, with small
savers’ increased awareness of alternative mar­
ket instruments, the potential threat of disinter­
mediation is even greater today than when ceil­
ing rates were first introduced.
Consumer groups and some members of the
Congress have correctly argued that the existing
ceiling-rate structure has placed the small saver
at an increasing disadvantage. Growing senti­
ment for relief for the small saver has been
voiced simultaneously with mounting pressure
by thrift institutions to curb the rising cost of
their deposit funds and concern that increasing
deposit costs would be reflected in higher mort­
gage rates. Not only the consideration of equity
for the small saver but also the growing threat
of disintermediation indicates to us that some
regulatory action is becoming imperative. A
wide range of suggestions have been made to
give the consumer more attractive deposit in­
struments. For example, some have suggested
a reduction in the minimum denomination on
the money market certificate, perhaps with a
ceiling rate that floats at some fixed differential
below the six-month Treasury bill rate. Another
alternative might be to introduce a small-denomination long-term certificate whose ceiling
either floats with longer-term market rates or is
fixed at a reasonably competitive level. Chair­
man Reuss of the House Banking Committee
has recently suggested a small-denomination
savings instrument, with attractive liquidity
characteristics, whose maximum return to the
saver would rise the longer it is held.
I want to assure you that the regulatory agen­



311

cies in recent weeks have been analyzing and
evaluating a large number of such alternatives
in an effort to develop a more attractive deposit
instrument for the small saver, without putting
undue pressure on earnings of thrift institutions.
It is the board’s hope that constructive action
in this area can soon be taken.
The chairman of this subcommittee, in his
letter inviting the board to testify, asked what
unilateral actions the Federal Reserve could
legally take to give small savers a more nearly
market-determined rate of return on their sav­
ings. The board, after consultation with the
other regulatory agencies, has the authority to
create new deposit categories for member
banks— bearing any deposit rate ceiling believed
to be in the public interest— where unique char­
acteristics or conditions exist. In 1977 the board
used such authority to create the new time
deposit for individual retirement and Keogh
accounts to accommodate the congressional ob­
jective in the Employee Retirement Income Se­
curity Act of 1974. I am also advised that, after
consultation, the board could raise the ceiling
rate for member banks on any deposit category
created since the 1975 enactment of Public Law
94-200, or reduce the minimum denomination
on any member-bank account category. This
would include the money market certificate.
While the board thus could take action on its
own to create an attractive instrument for mem­
ber banks to offer to the small saver, we are
aware that such unilateral action would risk
shifts of funds from thrift institutions, thereby
threatening the flow of mortgage credit.
Regardless of what actions the regulatory
agencies may take in the period just ahead, the
asset characteristics of savings and loan associ­
ations and mutual savings banks will still con­
strain their ability to pay substantially higher
rates on deposits without seriously threatening
the viability of some institutions. When infla­
tionary pressures moderate, and market interest
rates decline, thrift institutions will be in a much
better position to compete. Over the longer run,
however, any depositary institution that spe­
cializes in fixed-rate mortgages is likely to re­
main vulnerable to the pressures of disinterme­
diation, which include the risks of illiquidity,
insolvency, and possible forced merger. As I
have noted, these risks are being heightened by

312

Federal Reserve Bulletin □ April 1979

financial innovations facilitating the acquisition
by small savers of nondeposit instruments bear­
ing market rates of return.
Regardless of what actions the regulatory
agencies may take in the period just ahead, the
asset characteristics of savings and loan associ­
ations and mutual savings banks will still con­
strain their ability to pay substantially higher
rates on deposits without seriously threatening
the viability of some institutions. When infla­
tionary pressures moderate, and market interest
rates decline, thrift institutions will be in a much
better position to compete. Over the longer run,
however, any depositary institution that spe­
cializes in fixed-rate mortgages is likely to re­
main vulnerable to the pressures of disinterme­
diation., which include the risks of illiquidity,
insolvency, and possible forced merger. As I
have noted, these risks are being heightened by
financial innovations facilitating the acquisition
by small savers of nondeposit instruments bear­
ing market rates of return.
In the board’s view, these problems can be
eliminated only if the Congress acts to liberalize
the asset powers of thrift institutions. Increas­
ingly in recent years, banks and other financial
intermediaries have insisted that their long-term
loan contracts include provisions for rate ad­
justments keyed to some index of market rates.
This stance reflects their desire to avoid the risks

associated with extending fixed-rate long-term
credit when their cost of funds fluctuates. Re­
strictions prohibit most savings and loan associ­
ations and mutual savings banks from offering
variable-rate mortgages (VRMs). The board be­
lieves that congressional authorization of na­
tionwide VRMs, with provisions to assure that
the mortgage rate varies with market rates in
such a way as to protect consumer interests,
would allow thrift and other institutions to build
up asset portfolios providing earnings more
flexibly attuned to market developments. Over
time, this would eliminate the major constraint
facing the financial regulatory agencies in pro­
viding more equitable returns to all savers.
In addition, the board recommends that the
Congress consider exempting federally insured
depositary institutions from anachronistic state
usury ceilings on residential mortgage rates in
view of the compelling circumstances that cur­
rently prevail. In 14 states, usury ceilings are
currently below free-market mortgage yields. If
our institutional lenders are restricted from
earning market rates of return on assets, then
they cannot be expected to pay market rates of
return on deposit liabilities. This is the funda­
mental problem that impedes progress toward
unconstrained institutional competition for
small-depositor funds— an outcome that the
board has long supported and continues to seek.

Statement by Philip E. C oldw ell , M em ber,
B oard of Governors of the Federal Reserve
System , before the D om estic M onetary Policy
Subcommittee of the Committee on Banking,
Finance and Urban A ffairs , U.S. House of
R epresentatives, A p ril 4, 1979 ,

FOMC meetings and that individual participants
at such meetings and the views they express be
identified. The two bills differ in that H.R. 424
would require the public release of the minutes
five years after the meeting to which they relate,
while H.R. 2307 would require such release
after three years.
The board sympathizes with the concerns that
underlie these proposals and has no objection
to publication of such minutes provided it is
made clear in legislation that no portion of the
minutes may legally be released prior to a spe­
cified minimum period of at least three years
and provided that references to sensitive inter­
national financial developments can be screened
by the FOMC and withheld for additional pe­
riods, if that is deemed advisable in the national
interest. The public already receives very cur­

I am pleased to appear before this subcommittee
on behalf of the Board of Governors to testify
on proposed legislation dealing with the public
release of Federal Open Market Committee
(FOMC) minutes, the terms of office of the
chairman and vice chairman of the board, and
an increase in the number of directors at the
Federal Reserve Banks.
Two bills, H.R. 424 and H.R. 2307, have
been introduced to amend the Federal Reserve
Act to require that detailed minutes be kept of



Statements to Congress

rent information on the FOMC through a policy
record of each meeting, which normally is pub­
lished with a delay of about a month. This
record summarizes the economic information
available to committee members, the policy
discussion, and the factors influencing the views
of members. The votes of all FOMC members
are recorded. Information on current monetary
policy is also provided to the Congress through
the board’s reports under the new HumphreyHawkins legislation and the chairman’s frequent
testimony before congressional committees.
Detailed minutes of FOMC meetings would not
add greatly to these sources of information,
although a scholar might gain additional in­
sights.
Three years ago the FOMC discontinued its
longstanding practice of having its staff prepare
detailed accounts for each meeting. Such re­
ports— referred to as “ memoranda of discus­
sion” — were originally intended solely as inter­
nal working documents, but during 1964 a de­
cision was reached to make them available to
the public after a five-year lag. Delayed public
release assured that the memoranda could pru­
dently continue to include a full record of
FOMC deliberations. Those deliberations often
involve very sensitive matters whose premature
disclosure might have a damaging impact on
domestic and international financial markets and
thereby weaken the ability of the Federal Re­
serve to implement effectively its monetary pol­
icy decisions. Other dangers of premature dis­
closure include an inhibiting effect on the frank
exchange of views during policy debates and
a potential for politicizing the decisionmaking
process. Moreover, in the international financial
area premature release of information on ongo­
ing negotiations and on the views and operations
of foreign governments could have an immedi­
ately adverse impact on foreign exchange mar­
kets and on the future ability of the Federal
Reserve to implement its international financial
responsibilities.
Over the years there had been little demand
for access to the memoranda of discussion by
scholars, the press, or others, and the FOMC
therefore questioned the desirability of continu­
ing to incur the high costs of preparing this
document. A growing concern that early, and
possibly immediate, disclosure of the memo­



313

randa of discussion would be required was an­
other consideration underlying the FOMC deci­
sion to discontinue the document in the spring
of 1976. At the same time, the FOMC recog­
nized its obligation to provide thorough infor­
mation on its decisions, and its staff was in­
structed to expand greatly the policy record
prepared for each meeting, whose present con­
tents I have described.
In the board’s judgment, it is vital that legis­
lation requiring the maintenance and eventual
public release of a detailed record of FOMC
meetings contain safeguards against premature
disclosure of sensitive information. The board
is especially concerned about material relating
to international financial matters and strongly
urges a specific exemption of such material in
the legislation. The law should provide that no
detailed minutes are to be released by the Fed­
eral Reserve before the expiration of a specified
period, such as three years or five years. The
optimal period for withholding detailed FOMC
minutes from public disclosure must remain a
matter of judgment. The board can endorse a
three-year delay, although some board members
would prefer five years. However, the board
would also need the authority to protect infor­
mation relating to international financial matters
for longer periods if the FOMC judged such a
course to be in the national interest.
It is the board’s hope that the language of
the legislation would provide it with more flex­
ibility as to the form of the detailed minutes.
For example, the provision of a lightly edited
transcript would have the advantage of preserv­
ing the full substance and flavor of FOMC
meetings while holding down the heavy costs
of preparing the record. We have in mind a
transcript similar to that for congressional hear­
ings, which are edited by participants for clarity
and correct grammar. As a further means of
making the minutes more readable— and also to
moderate costs— the legal requirement for min­
utes might be confined to FOMC discussions
of substance relating to economic and financial
matters and to monetary policy. Procedural and
organizational matters would be incorporated by
reference only, as would staff briefings and
reports on such matters.
I would now like to turn to the subject of
amending the Federal Reserve Act to align more

314

Federal Reserve Bulletin □ April 1979

closely the terms of the chairman and vice
chairman of the Board of Governors with that
of the President. There are currently three bills
on this issue before the House. H.R. 2306,
which was introduced by Chairman Mitchell,
would provide for appointment of both the
chairman and the vice chairman of the board
at regular four-year intervals, beginning one
year following the inauguration of the President.
H.R. 423 was introduced by Congressman
Hansen and is intended to clarify an ambiguity
in the Federal Reserve Act by providing that
the chairman or vice chairman shall continue
to serve in that capacity after the expiration of
the term until a successor is designated and
confirmed. Finally, we are pleased to learn that
Chairman Mitchell has introduced the board’s
proposed legislation (H.R. 3257), which sub­
stantially incorporates features of both H.R.
2306 and H.R. 423.
At the present time, the Federal Reserve Act
provides each newly designated chairman with
a full four-year term, whether or not his prede­
cessor served a full term as chairman. This
process leaves to chance the point in time during
a President’s term when the President is able
to designate a new chairman. Thus, proposals
to align the term of the chairman in some way
with the term of the President have been under
consideration by the Congress for a number of
years.
The board believes that there is a sound basis
for closer phasing of the chairman’s term with
that of the President, and therefore favors mak­
ing the four-year term of the chairman begin
one year following the inauguration of the Pres­
ident. By providing a lag of one year between
the commencement of the President’s term and
the chairman’s term, the board believes that the
designation of a chairman is not likely to
become entangled in presidential election poli­
tics and yet it will allow the President the widest
possible choice in selecting a candidate whose
views are compatible with his own. The board,
however, does not favor aligning the vice
chairman’s term with that of the President in
a similar manner. The board believes extending
the principle of coterminous terms to that of
the vice chairmanship is not necessary to bring
about closer communication between the Pres­
ident and the board. Because the desired coop­



eration with the executive branch will be
achieved as a result of the President’s ability
to name a new chairman at a definite time, the
additional factor of associating the vice chair­
man’s term in this process would be an un­
needed intrusion into the insulation of the Fed­
eral Reserve System from political pressures.
Moreover, there is a needed continuity of ad­
ministration of the board that would be inter­
rupted by simultaneous appointments of both the
chairman and the vice chairman. This problem
is related to the fact that the four-year terms
of the chairman and vice chairman are distinct
from their longer terms as members of the
board.
The bills being discussed here also contain
some useful provisions that are more of a
“ housekeeping” nature. The board favors spe­
cifically authorizing the vice chairman to act
temporarily as chairman in the event that the
chairman is temporarily absent and either is
unavailable to preside or is disabled. In addi­
tion, in the event of the death, resignation, or
permanent incapacity of a chairman, the vice
chairman should be empowered to act as chair­
man until a new chairman is named by the
President.
Finally, the board favors clarifying an ambi­
guity in the Federal Reserve Act with respect
to situations in which the term of a chairman
or vice chairman has expired but no successor
has been named. In such situations the board
would make explicit in the act that the outgoing
chairman or vice chairman may continue to
serve until a successor has been designated and
confirmed. Adoption of this provision would be
in conformity with a similar provision in the
act that allows board members, upon the expi­
ration of their terms, to continue serving until
their successor is confirmed.
Finally, Mr. Chairman, the board is pleased
to learn that H.R. 3257, the legislation that you
introduced on March 27, would increase the
number of class C directors of Federal Reserve
Banks from three to six.
As indicated in Chairman Miller’s letter of
February 22, which transmitted to the Congress
the board’s request for this legislation, the board
has been endeavoring for several years to
broaden the representative aspect of the direc­
tors of Federal Reserve Banks. These efforts

Statements to Congress

315

have been accelerated with the passage of the
Federal Reserve Reform Act of 1977, which
urges the system to include representation from
among consumer, labor, and service interests
on the boards of directors.
The board, however, has encountered diffi­
culties in achieving the balance contemplated
by the Congress. Under present law the board
can appoint directly the three class C directors
of Reserve Banks, two of whom must also meet
the qualifications to serve as chairman and dep­
uty chairman of the board. The number of class
C vacancies that occur in any year is further
limited since directors are appointed for threeyear terms.
In considering this problem, the board has
concluded that, in order to implement the Fed­
eral Reserve Reform Act of 1977 as expedi­
tiously as possible, additional legislation is de­
sirable to increase the number of class C direc­
tors at each Reserve Bank from three to six.
Enactment of this legislative recommendation
would permit the board to appoint immediately
three new class C directors at each Reserve
Bank. The terms of office for these new directors
would be three years, but initially would be

staggered with one director being appointed to
a one-year term, one director to a two-year term,
and the third director to a three-year term.
By way of contrast, we note that Congress­
man Hansen has introduced a bill, H.R. 422,
that would increase the number of Reserve Bank
directors in each of classes A, B, and C from
three to four, and would increase the terms of
all directors from three to four years. H.R. 422
thereby would add one additional banker as a
director, one additional director with the res­
tricted qualifications required of a class B direc­
tor, and only one additional class C director to
be appointed by the Federal Reserve Board. It
should be noted that the board has little or no
control over nominations or elections of class
A and B directors.
While both approaches would increase by
three the number of directors on each Reserve
Bank board, the board believes that its legisla­
tive proposals would go further in implementing
the Federal Reserve Reform Act by providing
for all three new additions to be representative
of the more diverse occupational categories
comprising class C directorships.
This concludes my testimony, Mr. Chairman.

Statem ent by J. Charles Partee, M em ber, B oard
of Governors of the Federal R eserve System ,
before the Subcom m ittee on Financial Institu­
tions of the Committee on Banking, Housing
and Urban Affairs, U.S. Senate, A p ril 11,
1979.

The federal financial regulatory agencies have
recently been exploring ways that would reduce
the burden of deposit rate controls on small
savers and, at the same time, comply with the
intent of the Congress in establishing and re­
newing these controls. We believe that the regu­
latory actions proposed last week would signifi­
cantly improve the depositary options available
to small savers without threatening the viability
of the thrift industry.
Before discussing these proposals and the two
resolutions in detail, I believe it appropriate to
review briefly the institutional, economic, and
legislative constraints that impinge on regula­
tory decisions concerning deposit rate ceilings.
Although market developments are rapidly un­
dermining the efficacy of these ceilings, many
of the factors that initially led the Congress to
establish this regulatory framework are still at
work. A review of these constraints is therefore
necessary to an understanding of the regulatory
decisions that are currently at issue.

I am pleased to testify this morning on behalf
of the Federal Reserve Board concerning meas­
ures that would increase the rates of return
available on small-denomination deposit ac­
counts. The board has long advocated the grad­
ual removal of deposit rate ceilings, recognizing
that they are an impediment to free competition
and that they have had a particularly inequitable
impact on small savers. The two resolutions
before this subcommittee would help alleviate
these problems, but the board cannot at this time
support a proposal that would lower the mini­
mum denomination on money market certifi­
cates to $1,000, for reasons that I will explain
shortly.



316

Federal Reserve Bulletin □ April 1979

The fundamental constraint is that thrift insti­
tutions still cannot pay market-oriented rates of
return on all their deposit liabilities during peri­
ods of high interest rates. Their inability to do
so results from restrictions that limit their in­
vestments principally to long-term, fixed-rate
mortgages. Because of slow turnover in these
mortgage portfolios, the average yield on assets
of thrift institutions responds sluggishly to
changes in market conditions. For example,
average returns on mortgage portfolios have
risen only 2 V2 percentage points since 1966,
when deposit rate controls first were introduced,
while inflation-induced increases in short- and
intermediate-term market interest rates have
averaged V /2 to 4 percentage points over the
same period. As a result, the earnings of thrift
institutions are still squeezed whenever they try
to compete for funds by paying market rates
during periods of credit stringency. Before thrift
institutions can be expected to pay market rates
on all their deposits, reform of their asset
powers will be necessary. Otherwise, the finan­
cial solvency and stability of many individual
institutions may be jeopardized.
It should be emphasized that commercial
bank earnings have never been a limiting factor
in the regulatory decisions on deposit rate ceil­
ings. Banks hold a more diversified portfolio
of assets whose maturities are, on average,
considerably shorter than those of the thrift
institutions. The rates of return on commercial
bank portfolios have thus been more responsive
to market yields and have given the banks
greater flexibility to pay competitive rates on
deposits.
In enacting and subsequently extending the
authority for coordinated deposit rate controls,
the Congress has repeatedly made it clear that
protection of the thrift institutions and concern
for the mortgage market should be dominant
considerations in establishing the structure of
deposit rate ceilings on the small-denomination
time and savings deposits for which banks and
thrift institutions are in direct competition. At
the time controls on deposit rates first were
enacted in 1966, this legislation was viewed as
a temporary but necessary measure to protect
the short-run viability of the thrift industry. In




this spirit, both the initial legislation and the
subsequent renewals have been for short peri­
ods, never more than two years. Thus, every
Congress since 1966 has had to reconsider the
need and justification for deposit rate controls,
as will this Congress when the current authority
expires at the end of 1980. In all, 13 votes have
been taken to renew the authority for deposit
rate controls.
In two instances, moreover, congressional
actions were taken to increase the protection of
the thrift industry beyond the scope originally
envisioned in the 1966 legislation. The first such
action followed the suspension in July 1973 of
deposit rate ceilings on four-year accounts with
denominations of $1,000 or more. Barely four
months later, a congressional resolution man­
dating ceilings on all deposits under $100,000
brought an end to this experiment, and with it
the only period since 1966 when the institutions
were free to offer a market-oriented rate of
return to small savers. Two years later the
Congress again strengthened the protection of
thrift institutions from the possibility of regula­
tory actions that might unduly threaten their
competitive positions when it passed a law
(Public Law 94-200) requiring approval by both
houses of Congress prior to any reduction in
ceiling-rate differentials on accounts then in
existence. In short, whenever the Congress has
acted in the past on deposit rate controls, the
objectives of protecting the thrift industry and
sustaining mortgage-credit flows appear to have
overshadowed the desire to provide small savers
with a market-oriented rate of return.
Meanwhile, small savers have become in­
creasingly aware of alternative investments that
pay returns well in excess of deposit rate ceil­
ings when market yields are high. The public
has learned the relative ease with which market
securities— particularly Treasury issues— can be
purchased. Moreover, innovative instruments,
such as money market mutual funds and unit
investment trusts, have emerged to attract the
deposits of small savers. Shares in these funds
are ordinarily quite liquid, bear market rates of
return, and often are available in minimum
denominations of $1,000 or less. In the last six
months, these mutual funds have attracted more

Statements to Congress

than $10 billion, and it is a reasonable pre­
sumption that a sizable share of this flow might
have gone to or remained in depositary institu­
tions if the rates they could pay were more
competitive.
These developments make it clear that some
action needs to be taken to provide relief to the
small saver and thereby to reduce the exposure
of the institutions to disintermediation by this
group of depositors. Yet it is also clear that such
action cannot unduly threaten the earnings of
thrift institutions during a period of high market
rates. One of the resolutions being considered
today (S. Con. Res. 5) calls upon the agencies
to provide promptly “ an appropriate method
under which the interest rate on small savings
deposits . . . is increased equitably.” We be­
lieve that the actions proposed last week meet
this requirement within the constraints I have
noted. Recognizing the complexity and novelty
of some of the proposals, the agencies have
solicited comments for a 30-day period; the
comments we receive should help us judge
whether an appropriate balance has been struck
between the needs of small savers and the ne­
cessity of maintaining a viable thrift industry
and mortgage market. The board fully expects
that action on these proposals can be taken
shortly after the period for public comments
ends in early May.
In advancing this set of proposals, the agen­
cies are seeking to provide savers with instru­
ments that bear higher returns with reasonable
liquidity, while limiting the increases in thrift
institution costs to manageable proportions. The
floating-ceiling certificate would provide a mar­
ket-oriented rate of return to savers who are
willing to commit as little as $500 for the
five-year period specified; depositors withdraw­
ing funds after a year or so would be subject
to a premature-withdrawal penalty that is con­
siderably less severe than the existing require­
ment. For savers with an uncertain investment
horizon, the rising-rate certificate would offer
more flexibility in gaining access to their funds,
albeit at some sacrifice in yield. After the first
year, there would be no penalty for premature
withdrawal from rising-rate certificates; the
penalty would be replaced by an incentive to




317

earn a higher yield by keeping funds on deposit.
Finally, for savers whose main desire is a better
return on liquid deposits, the bonus savings
account plan would offer a moderately higher
yield on whatever portion of their accounts
happens to remain on deposit for a period of
one year or more.
This set of proposals represents the end prod­
uct of intensive study and discussion by the
financial agencies of a wide variety of alterna­
tives. Among the options that received careful
consideration was the possibility of reducing the
$10,000 minimum denomination on existing
money market certificates. We also considered
introducing a new money market certificate with
a lower minimum and a lower ceiling. Although
these alternatives were appealing for their sim­
plicity and equity, they had to be rejected be­
cause of the potentially severe cost impact on
thrift institutions. These cost increases would
result mainly from the shifting of funds into
money market certificates that the institutions
otherwise would retain in lower-cost passbook
and short-term time accounts.
Similar reasoning leads the board to believe
that it would be unwise for the Congress to
approve a resolution like S. Res. 59, which
requires regulatory minimum denominations of
no more than $1,000 on any deposit whose
ceiling rate of interest is tied to yields on U.S.
government securities. This resolution would
not only mandate a reduction in existing mini­
mum-denomination requirements on money
market certificates, but it would also limit the
range of options that might need to be consid­
ered in future deliberations on interest rate ceil­
ings.
When the money market certificate was in­
troduced last June 1, a minimum denomination
of $10,000 was established on the grounds that
depositors with relatively large amounts at stake
would be most likely to shift into open-market
instruments during a high rate period. The
choice of $10,000 seemed particularly appro­
priate since that is the minimum denomination
of six-month Treasury bills to which the rate
ceiling on money market certificates is tied.
Even with this restriction, the new certificate
has attracted a huge volume of funds and has

318

Federal Reserve Bulletin □ April 1979

provided many savers with their first deposit
instrument bearing a market rate of return. But
it has also been a very costly source of funds
for the institutions. The board’s staff estimates
that about half of the $116 billion of money
market certificates outstanding at the end of
February represented funds that otherwise
would have remained in lower-cost passbook or
fixed-ceiling time accounts. Indeed, the mount­
ing earnings pressure on savings and loan asso­
ciations and mutual savings banks resulting
from the transfer of such funds was a major
reason for the recent regulatory action reducing
somewhat the maximum yields available on
money market certificates.
Lowering the minimum denomination on
money market certificates would, of course,
expose the thrift institutions to greater adverse
earnings effects and could create serious prob­
lems of solvency and liquidity for some institu­
tions. If such action were taken, those institu­
tions choosing to offer money market certifi­
cates in smaller units would probably experience
large transfers from existing accounts. This
would directly increase their costs of funds,
and— since no additional funds for high-yielding
investments are provided by such transfers—
earnings would be squeezed more than at pres­
ent.
On the other hand, those institutions elect­
ing not to offer smaller money market certifi­
cates would face the prospect of large outflows
of small-denomination accounts to other institu­
tions, which could create serious liquidity prob­
lems. Given the large number of passbook ac­
counts with deposits of $1,000 or more, as well
as the large volume of small-denomination cer­
tificates scheduled to mature in the next few
quarters, the risks of institutional dislocation
associated with a low minimum denomination
on money market certificates seem too large to
bear.
The board, however, recognizes the pressing
need for a deposit instrument offering a marketdetermined yield that would be available to
small savers. We believe the proposed fiveyear, floating-ceiling certificate meets this need
without endangering the short-run viability of
the thrift institutions. The relatively long matu­




rity, coupled with the still significant penalty
for premature withdrawal, should limit the po­
tential for massive transfers from lower-cost
passbook and short-term time accounts. At the
same time, ceiling rates of interest somewhat
below yields on Treasury issues of like maturity
are warranted by the simplicity and convenience
of dealing with local institutions rather than
going into the market for the placement of small
savings balances.
Of course, all of the proposals that have been
advanced during the deliberations of the agen­
cies represent only patchwork solutions to the
basic problem, which results from the fact that
thrift institutions, by law and by regulation,
invest mainly in long-term, fixed-rate assets.
Regardless of what actions the regulatory agen­
cies may take in the period just ahead, these
portfolio characteristics still constrain the ability
of thrift institutions to pay substantially higher
rates on deposits without seriously jeopardizing
the viability of some institutions. When infla­
tionary pressures subside and market rates de­
cline, thrift institutions will be in a much better
position to compete. Over the longer run, how­
ever, any depositary institution specializing in
fixed-rate mortgages will be vulnerable to the
pressures of disintermediation and the attendant
risks of illiquidity, insolvency, and possible
forced merger.
In the board’s view these problems can be
solved only if the Congress acts to liberalize
the asset powers of thrift institutions. Such
action would make possible a more flexible
return on investments. Increasingly in recent
years, banks and other financial intermediaries
have insisted that their long-term loan contracts
include provisions for rate adjustments keyed
to some index of market rates. This stance
reflects their desire to avoid the risks associated
with extending fixed-rate, long-term credit when
their cost of funds fluctuates. Most savings and
loan associations and mutual savings banks are
prohibited currently from offering variable-rate
mortgages (VRMs). The board believes that
congressional authorization of nationwide
VRMs, with provisions to assure that the mort­
gage rate varies with market rates in such a way
as to protect consumer interests, would allow

Statements to Congress

thrift and other institutions to build up mortgage
portfolios providing earnings more flexibly at­
tuned to market developments. Over time, this
would eliminate the major constraint facing the
financial regulatory agencies in providing more
equitable returns to all savers.
In addition, the board recommends that the
Congress consider exempting federally insured
depositary institutions from anachronistic state
usury ceilings on residential mortgage rates in
view of the compelling circumstances that cur­




319

rently prevail. In 13 states, usury ceilings are
currently below free-market mortgage yields. In
place of these restrictions, the Congress might
wish to consider a usury ceiling for federally
insured institutions tied to an interest rate that
is sensitive to market conditions. Without some
relief from existing usury restrictions, it seems
unreasonable to expect our institutional lenders
to pay market rates of return on deposits when
they are prevented at the same time from earning
market yields on their assets.
□

321

Announcements
R e g u l a t io n E
The Board of Governors of the Federal Reserve
System on March 21, 1979, issued in final form
portions of Regulation E (Electronic Fund
Transfers) relating to consumer protection under
two sections of the Electronic Fund Transfer
Act.
The act directs the board to issue implement­
ing regulations and model disclosure clauses.
Proposed rules were issued for comment on
December 26, 1978, to implement two sections
of the act that became effective February 8,
1979. Proposed regulations for other sections
of the act that go into effect in May 1980 will
be issued later.
The act protects consumers in their use of
electronic fund transfer services. Electronic
transfer services permit consumers to transfer
funds without the use of checks. The use of
an EFT card is one means of effecting such
transfers. EFT cards may be used by consumers
to withdraw cash from their accounts at auto­
mated teller machines or to debit their accounts
at the point of sale for purchases of goods or
services.
The rules issued as part of Regulation E relate
to sections of the act that: (1) limit a consumer’s
liability for unauthorized use of an EFT card;
and (2) specify the conditions under which EFT
cards may be issued.
The regulation exempts certain transfers, in­
cluding1 automatic transfers from savings ac­
counts to checking accounts. Other exemptions
may be considered later.
Under the final regulation, a financial institu­
tion may. issue to a consumer an EFT card that
is valid for use only: (1) in response to an oral
or written request or application; (2) as a
renewal of, or in substitution for, a card that
has already been used or accepted; or (3) as
a renewal of; or in substitution for, a card issued




on an unsolicited basis before February 8, 1979,
provided certain disclosures are made.
Financial institutions may distribute unsolic­
ited cards only if all of the following conditions
are satisfied:
1. The unsolicited card is not valid for use.
2. The distribution of such cards is accom­
panied by the following disclosures of the con­
sumer’s rights and liabilities that will apply if
the card is validated:
a. Rules of the institution issuing the card
concerning the liability of its customers in the
event of unauthorized use of the card.
b. Telephone number at which loss or theft
of an EFT card may be reported.
c. Business days during which such re­
ports can be made.
d. Kinds of electronic fund transfers the
consumer may initiate, including limits on the
frequency or dollar amounts of such transfers.
e. Any charges that will be made.
f. Conditions under which the issuing in­
stitution will disclose information about the
consumer’s account to third parties.
g. Whether the issuing institution will
provide periodic statements or other documen­
tation of transfers.
h. Whether the financial institution has
error resolution procedures, and if so, a sum­
mary of those procedures.
i. Conditions under which the financial in­
stitution will assume liability to the consumer
for failure to make electronic fund transfers.
3. The distribution also is accompanied by
a clear explanation that the unsolicited card is
not valid for use, and how the consumer may
dispose of the card if validation is not desired.
4. The card is validated only in response to
the consumer’s oral or written request or appli­
cation for validation and after verification of the
consumer’s identity.

322

Federal Reserve Bulletin □ April 1979

R e g u l a t io n S: R e v o c a t io n
The Federal Reserve Board announced on
March 5, 1979, that it is revoking one of its
regulations in the ongoing program to clarify
and simplify all of its regulations.
The board decided to revoke Regulation S
(Bank Service Arrangements), which governed
the board’s power to regulate and examine
banking services performed for state-chartered
member banks by outsiders. The regulation had
been in effect since April 3, 1963, but a recent
amendment to the Bank Service Corporation Act
has made it unnecessary.
The board also adopted modified interpreta­
tions to simplify present interpretations and to
conform them to the amended Bank Service
Corporation Act. The act creates an exception
to the general prohibition in federal banking
laws against the purchase of stock by member
banks. It allows two or more banks to engage
in a joint venture by investing up to 10 percent
of their capital and surplus in a “ bank service
corporation” that provides clerical services to
banks.
Changes

in

B o a r d S taff

The Board of Governors has announced the
following appointments in the Legal Division,
effective April 3, 1979.
J. Virgil Mattingly, Senior Attorney, to As­
sistant General Counsel. Mr. Mattingly, who
joined the board’s staff in June 1974, holds a
B.A. from George Washington University and
a J.D. from the George Washington University
Law Center.
Gilbert T. Schwartz, Senior Attorney, to As­
sistant General Counsel. Mr. Schwartz, who
joined the board’s staff in September 1974,
holds a B.A. from Temple University, an
M .B .A . from the Columbia University Graduate
School of Business, and a J.D. from the Temple
School of Law.
R e v is e d O T C S t o c k L is t
The Federal Reserve Board has published a
revised list of over-the-counter (OTC) stocks
that are subject to its margin regulations, effec­




tive March 30, 1979. The list supersedes the
revised list of OTC margin stocks that was
issued on October 2, 1978.
Changes that have been made in the list,
which now includes 1,220 OTC stocks, are as
follows: 125 stocks have been included for the
first time; 10 stocks previously on the list have
been removed for substantially failing to meet
the requirements for continued listing; and 52
stocks have been removed for reasons such as
listing on a national securities exchange or ac­
quisition by another firm.
The list is available on request from Publica­
tions Services, Division of Support Services,
Board of Governors of the Federal Reserve
System, Washington, D.C. 20551.

Pro po sed A

c t io n s

The Board of Governors has asked for public
comment, through April 30, 1979, on proposed
changes in Regulation E (Electronic Fund
Transfers) that (1) would require certain disclo­
sures to all consumers with EFT cards regarding
their financial responsibility for the use of lost
or stolen EFT cards and (2) would make these
disclosures a precondition of imposing any lia­
bility.
The Federal Reserve Board has extended until
May 18 the period for public comment on a
proposal before the board from the New York
Clearing House Association to establish inter­
national banking facilities.
A series of measures designed to help indi­
viduals obtain a higher rate of return on their
savings was proposed for public comment on
April 3, 1979, by the federal regulators of
financial institutions. The Federal Home Loan
Bank Board, the Federal Reserve Board, and
the Federal Deposit Insurance Corporation re­
quested comment by May 4.
Federal bank supervisors on April 11, 1979,
proposed a uniform policy for determining how
bank examiners should classify past due con­
sumer installment loans held by commercial
banks. The Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the
Federal Reserve Board requested comment on
the proposal by May 18, 1979.

Announcements

S y st e m M e m b e r s h ip :
A d m is s io n o f S t a t e B a n k s

323

F lorida

Ocala ..............Citizens First Bank of Ocala
Illinois

The following banks were admitted to member­
ship in the Federal Reserve System during the
period March 16 through April 15, 1979:




Normal ..............Bank of Illinois in Normal
M on tan a

Billings ................ Montana Bank of Billings

325

Record of Policy Actions
of the Federal Open Market Committee
MEETING HELD ON FEBRUARY 6, 1979

1.

D om estic Policy Directive

Growth in real output of goods and services had accelerated to an
annual rate of 6.1 percent in the fourth quarter of 1978, according
to preliminary estimates of the Commerce Department, from a rate
of 2.6 percent in the third quarter. Average prices, as measured by
the fixed-weight price index for gross domestic business product, rose
at an annual rate of 8.3 percent in the fourth quarter, slightly faster
than the rate in the third quarter.
Staff projections for 1979 suggested a marked slowing in the
expansion of economic activity by the second quarter of the year
and a sustained slow rate of growth during the remaining quarters.
Average prices were projected to continue rising at a rapid pace, and
the rate of unemployment was expected to increase somewhat from
its level in the fourth quarter.
The index of industrial production increased an estimated 0.6 percent
in December, close to its average gain in earlier months of the year.
Expansion in nonfarm payroll employment, including employment in
manufacturing, continued strong in December and January. The Jan­
uary rate of unemployment, at 5.8 percent, was essentially unchanged
from the previous five months.
The dollar value of total retail sales expanded considerably further
in December, following two months of substantial gains. After declin­
ing somewhat in November, unit sales of new automobiles picked
up in December and the first 20 days of January to a pace in line
with that in the July-October period.
Private housing starts were at an annual rate of 2.1 million units
in December and in the fourth quarter as a whole. In November,
however, total sales of new and existing single-family houses declined
somewhat.
The latest Department of Commerce survey of business spending
plans, taken in late November and December, suggested that spending




326

Federal Reserve Bulletin □ April 1979




for plant and equipment would expand 11.2 percent from 1978 to
1979. The estimated increase in 1978 was about 123A percent. M anu­
facturers’ new orders for nondefense capital goods declined 11 percent
over November and December, but orders for the fourth quarter as
a whole were considerably above those in the third quarter.
The index of average hourly earnings of private nonfarm production
workers rose at an annual rate of IOV2 percent in January; this rate
of increase represented an acceleration from 8 percent in the fourth
quarter and reflected in part a rise of about 9 V2 percent in the minimum
wage to $2.90 on January 1. The consumer price index rose at an
annual rate of almost 8 percent, and average prices of producer finished
goods at a rate of about IOV4 percent in the fourth quarter; both
measures were up about 9 percent from December 1977 to December
1978. In early 1979 there were substantial increases in prices of many
farm products and an upward adjustment in oil prices by the Organi­
zation of Petroleum Exporting Countries.
In foreign exchange markets the trade-weighted value of the dollar
against major foreign currencies moved generally upward after the
turn of the year; by the date of this meeting the advance had about
offset the sharp decline that followed the OPEC announcement on
December 17 of a larger-than-anticipated increase in oil prices for
1979. The U.S. merchandise trade deficit was at an estimated annual
rate of $30 billion in the fourth quarter of 1978, close to the rates
recorded in the second and third quarters.
In December growth of total credit at U.S. commercial banks
moderated considerably further from its reduced November pace, as
the expansion of bank loans slowed sharply and banks continued to
liquidate holdings of securities. However, data from large banks
suggested a strengthening of business loan growth in January. Out­
standing commercial paper of nonfinancial businesses continued to
increase rapidly in December.
The narrowly defined money supply (M-1) declined at an annual
rate of IV2 percent over the December-January period.1 This further
contraction appeared to reflect, among other influences, the shifts of
funds from demand deposits to savings deposits associated with the
recently introduced automatic transfer service (ATS) and negotiable
order of withdrawal (NOW) accounts in New York State. There was
1. M l com p rises private dem and d ep osits and currency in circu lation.

Record of Policy Actions of FOMC

virtually no growth in M-2 over the December-January period, while
growth in M-3 slackened further as relatively high market interest
rates continued to curb inflows of time and savings deposits subject
to fixed interest rate ceilings.2 However, growth in other time deposits,
including 6-month money market certificates and large-denomination
certificates of deposit, remained sizable. From the fourth quarter of
1977 to the fourth quarter of 1978, M -l, M-2, and M-3 expanded
about 1 V4 , 8 V2 , and 9 V2 percent, respectively; for all three monetary
aggregates, growth was substantially less than it had been over the
preceding year.
At its meeting on December 19, the Committee had agreed that
early in the intermeeting period open market operations should be
directed toward attaining a weekly average federal funds rate of 10
percent or slightly higher. This objective represented a slight increase
from the prevailing level. Subsequently, the objective for the federal
funds rate was to be maintained within the range of 9 3A to IOV2 percent.
In setting a specific objective for the funds rate, the Manager of the
System Open Market Account was to be guided mainly by the
relationship between the estimated annual rates of growth in M -1 and
M-2 over the December-January period and ranges of tolerance for
those two monetary aggregates of 2 to 6 percent and 5 to 9 percent,
respectively. If, with approximately equal weight given to M -l and
M-2, their rates of growth appeared to be significantly above the
midpoints of the indicated ranges, the objective for the federal funds
rate was to be raised in an orderly fashion within its range. On the
other hand, the objective was to be lowered in an orderly fashion
if the two-month growth rates appeared to be approaching the lower
limits of the indicated ranges.
Immediately following the December 19 meeting the Manager of
the System Open Market Account began to seek bank reserve condi­
tions consistent with an increase in the weekly average federal funds
rate to 10 percent or slightly higher, from a level around 9 7s percent.
However, federal funds traded at somewhat higher levels around the
year-end, reflecting uncertainties that affected demands for bank re­

2.
M -2 com p rises M - l and com m ercial bank tim e and sa v in g s d ep o sits other
than large-d en om in ation certificates of d ep osit. M -3 is M -2 plu s d ep o sits at
nonbank thrift in stitu tion s (sa v in g s and loan a sso cia tio n s, m utual sa v in g s b an k s,
and credit u n ion s).




327

328

Federal Reserve Bulletin □ April 1979




serves. By late December, staff projections suggested that growth in
M-2 over the December-January period would be at an annual rate
well below the lower limit of the range of tolerance specified for that
aggregate and growth in M -l would be in the lower portion of its
range of tolerance.
These developments pointed to a reduction in the objective for the
federal funds rate toward the 9% percent lower limit of the specified
range. However, on December 29 the Committee voted to modify
its directive by calling for open market operations directed at main­
taining the weekly average federal funds rate at about 10 percent or
slightly above. This action was taken in view of uncertainties sur­
rounding the interpretation of the behavior of the monetary aggregates
and in light of domestic economic conditions and developments in
domestic and international financial markets. On January 12 the Com­
mittee held a telephone conference to review the situation and to
consider whether supplementary instructions were needed, but no
change was made in the instruction to the Manager.
Most market interest rates declined on balance during the intermeet­
ing period. Factors apparently contributing to this development in­
cluded a market sentiment that further tightening in monetary policy
had become less likely in light of the behavior of the monetary
aggregates and the better performance of the dollar in foreign exchange
markets. Another influence appeared to be the recent modest growth
of total business credit demands. Commercial banks raised the loan
rate to prime business borrowers from IIV 2 to 1 1 3A percent during
the period, but a few banks later reduced the rate back to IIV 2 percent.
At this meeting, in conjunction with its discussion of the economic
situation and outlook, the Committee reviewed its 12-month ranges
for growth in the monetary aggregates. At its meeting in October 1978
the Committee had specified ranges of 6 V2 to 9 percent for M-2 and
7 V2 to 10 percent for M-3 for the period from the third quarter of
1978 to the third quarter of 1979. The committee also had indicated
that it expected growth of M -l to be within a range of 2 to 6 percent— a
range that reflected uncertainty concerning both the size and the speed
of the expected shift of deposits from demand to savings accounts
resulting from the introduction of ATS, and of NOW accounts in New
York State. The associated range for commercial bank credit was SV2
to IV /2 percent. The Committee also had decided that growth of M -l +
within a range of 5 to 7 V2 percent appeared to be generally consistent

Record of Policy Actions of FOMC

with the ranges of growth for the other monetary aggregates. The
ranges being considered at this meeting were for the period from the
fourth quarter of 1978 to the fourth quarter of 1979.
The Committee’s review of its longer-run ranges at this time was
undertaken for the first time within the framework of the Full Employ­
ment and Balanced Growth (“ Humphrey-Hawkins” ) Act of 1978.
That act, which amended section 2A of the Federal Reserve Act,
requires the Board of Governors to transmit to the Congress by
February 20 and July 20 of each year written reports concerning the
objectives and plans of the Board and the Committee with respect
to the ranges of growth or diminution of the monetary and credit
aggregates for the calendar year during which the report is transmitted
and, in the case of the July report, the objectives and plans with respect
to ranges for the following calendar year as well. The act also requires
that the written reports set forth a review and analysis of recent
developments affecting economic trends in the Nation and the rela­
tionship of the plans and objectives for the aggregates to the short-term
goals set forth in the most recent Economic Report of the President
and to any short-term goals approved by the Congress.3
With respect to the economic situation and outlook, most members
of the committee expressed little or no disagreement with the staff
projection of a marked slowing in the expansion by the second quarter
of 1979 and of a sustained slow rate of growth over the rest of the
year accompanied by some increase in the rate of unemployment.
However, a few members questioned whether a very slow pace of
growth was sustainable and suggested that the onset of a recession
before the end of the year, with a larger increase in the unemployment
rate, was the more likely development. Other members thought that
over the past few months the probabilities of the development of a
recession before the end of this year had declined somewhat. It was
also observed that expansion might prove to be stronger than projected
by the staff, especially if businessmen believed that effective steps
were being taken to moderate the rate of inflation.
The members continued to anticipate a relatively rapid rise in
average prices. Inflation was viewed as a distortion that could contrib­

3.
T he B o a rd ’s first report under the act w as transm itted to the C on gress on
February 2 0 , 1979.




329

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Federal Reserve Bulletin □ April 1979




ute to the development of a recession, and it was noted that forecasters
typically had underestimated the strength of inflationary forces. In this
connection, it was observed that the economy was operating at a higher
rate in relation to its potential than had been thought earlier.
In contemplating ranges for the monetary aggregates for the year
ahead, the Committee continued to face unusual uncertainties con­
cerning the forces affecting monetary growth. A staff analysis had
suggested that shifts in funds from demand deposits to savings accounts
with automatic transfer services and to the NOW accounts in New
York would depress growth of M -l over the year by about 3 percentage
points, but that projection was based on only a brief experience.
Moreover, it appeared that the publicity associated with ATS and the
sustained high level of interest rates had induced the public to reassess
more generally the desirability of holding demand deposits. It was
expected that such a reassessment would continue over the year ahead,
reducing somewhat further the demand for M -l in relation to income
as the public moved funds from demand deposits to interest-bearing
assets.
Significant uncertainties existed with respect to growth of M-2 and
M-3 as well. It appeared that the level of market interest rates had
been inducing the public to divert large amounts of funds from deposits
subject to fixed ceiling rates into market instruments. The staff analysis
suggested that diversions of funds would continue in the period ahead,
although not in the proportions of recent months. Thus, growth of
the interest-bearing deposits included in the broader monetary aggre­
gates was projected to pick up but to remain slower during 1979 than
during 1978.
In the Committee’s discussion, stress was placed on the importance
of adopting ranges for monetary growth over the year ahead that would
be consistent with a reduction in the rate of inflation, thereby reinforc­
ing the governmental actions over recent months in pursuit of that
objective. It was observed that the adoption of ranges for 1979 that,
after allowance for ATS, were indicative of slower monetary growth
might well influence attitudes and expectations in such a way that
the rate of inflation would decline significantly without an adverse
effect on the rate of unemployment. In this connection, it was sug­
gested that any indication of a move toward an easing of monetary
policy might change expectations so as to aggravate inflationary forces
and thus increase rather than reduce the risks of a recession. It was

Record of Policy Actions of FOMC

also suggested that lowering the ranges to a degree that contributed
to the onset of a recession could lead to developments that in the
longer run would be inflationary.
At the conclusion of the discussion, the Committee decided both
to lower the ranges for growth of the monetary aggregates over the
year ahead and to widen them slightly, reflecting in part the special
factors expected to influence monetary growth and the uncertainties
with respect to the magnitude of their impact. For the period from
the fourth quarter of 1978 to the fourth quarter of 1979, the Committee
adopted a range of IV2 to AV2 percent for M -l. After allowance for
a dampening effect of about 3 percentage points projected to result
from the further shifts in funds from demand deposits to savings
accounts with automatic transfer facilities, that range allowed for the
possibility of a significant deceleration of growth from the pace of
recent years.
The ranges adopted for M-2 and M-3 were 5 to 8 percent and 6
to 9 percent respectively. The associated range for the growth of
commercial bank credit was reduced to IV2 to IOV2 percent. It was
understood that the longer-run ranges, as well as the particular aggre­
gates for which ranges were specified, would be reconsidered in July
or at any time that conditions might warrant. It was also understood
that short-run factors might cause growth rates from one month to
the next to fall outside the ranges anticipated for the year.
The Committee adopted the following ranges for rates of growth in
monetary aggregates for the period from the fourth quarter of 1978 to
the fourth quarter of 1979: M -l, IV2 to 4 V2 percent; M-2, 5 to 8 percent;
and M-3, 6 to 9 percent. The associated range for bank credit is IV2
to IOV2 percent.
Votes for this action: Messrs. Miller, Volcker, Baughman,
Coldwell, Eastburn, Partee, Mrs. Teeters, and Mr. Mayo.
Votes against this action: Messrs. Wallich and Willes. Absent:
Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.)
M essrs. W allich and W illes dissented from this action because,
with the C om m ittee’s objective of slowing the rate of inflation
in m ind, they preferred to specify lower ranges for growth of the
m onetary aggregates. M r. W illes believed that the range adopted
for M -l, after allowance for the effects of ATS and a possible
further dow nw ard shift in the public’s dem and for m oney, repre­
sented an increase from the ranges that had been adopted during




331

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Federal Reserve Bulletin □ April 1979




1978. M r. W allich thought that, after allow ance for the expansion
in repurchase agreem ents and Eurodollars in addition to the other
forces affecting grow th of M -1, the range adopted represented too
m uch of an increase from the ranges set earlier.
In the discussion of policy for the period im m ediately ahead,
m ost mem bers of the Com m ittee favored directing operations
initially toward m aintaining the m oney m arket conditions currently
prevailing, as indicated by a federal funds rate of 10 percent or
slightly higher, but some sentim ent was expressed for a slight
additional firming in m oney m arket conditions. The views of the
m em bers differed prim arily with respect to the influence that the
incom ing evidence concerning growth of the m onetary aggregates
should have on the objective for the funds rate later in the period
before the next m eeting.
A few m em bers, em phasizing the rate of inflation and the position
of the dollar in foreign exchange m arkets, advocated an approach
sim ilar to that in the directive issued at the m eeting in D ecem ber;
that directive instructed the M anager to vary the objective for the
federal funds rate within its range more quickly in response to
relatively high than to relatively low rates of m onetary growth.
A few others, em phasizing the uncertainties in the outlook for
dom estic econom ic activity and for em ploym ent and the weakness
of m onetary growth over recent m onths, preferred a sym m etrical
approach in which the objective for the funds rate would be changed
no m ore prom ptly in response to relatively high than to relatively
low rates of m onetary growth. A num ber of m em bers suggested
that, in any event, the C om m ittee consult again before any change
was m ade in the objective for the federal funds rate.
The Com m ittee decided to instruct the M anager to direct open
m arket operations toward m aintaining the weekly average federal
funds rate at about the current level, provided that over the
F ebruary-M arch period the annual rates of growth of M-1 and M -2,
given approxim ately equal w eight, appeared to be w ithin ranges
of 3 to 7 percent and 5 to 9 percent, respectively. The Com m ittee
agreed that if grow th of M-1 and M -2 for the tw o-m onth period
appeared to be outside the indicated lim its, the M anager was
prom ptly to notify the C hairm an, who would then consult with
the Com m ittee to determ ine whether the situation called for sup­
plem entary instructions.

Record of Policy Actions of FOMC

The following domestic policy directive was issued to the Federal
Reserve Bank of New York:
The information reviewed at this meeting suggests that in the fourth
quarter of 1978 growth in real output of goods and services picked up
sharply from the reduced rate in the third quarter. In December, as in
the preceding two months, the dollar value of total retail sales expanded
substantially, and industrial production and nonfarm payroll employment
rose considerably further. Employment continued to grow in January,
and the unemployment rate, at 5.8 percent, was virtually the same as
in the final months of 1978. Over recent months, broad measures of prices
and the index of average hourly earnings have continued to rise rapidly.
The trade-weighted value of the dollar against major foreign currencies
has tended upward since the turn of the year, returning to about its level
in mid-December prior to the OPEC announcement of increased oil prices.
The U.S. trade deficit in the fourth quarter of 1978 was at about the
same rate as in the second and third quarters.
M -l increased little in December and appears to have declined in
January, in part because of the continuing effects of the introduction of
the automatic transfer service (ATS) on November 1, and M-2 and M-3
grew at relatively slow rates. With market interest rates relatively high,
inflows to banks of the interest-bearing deposits included in M-2 slowed
sharply, and inflows of deposits to nonbank thrift institutions slackened
further. Over the year from the fourth quarter of 1977 to the fourth quarter
of 1978, M -l, M-2, and M-3 grew about l lA , 8 ^2 , and 9 V2 percent,
respectively. Most market interest rates have declined on balance in recent
weeks.
Taking account of past and prospective developments in employment,
unemployment, production, investment, real income, productivity, inter­
national trade and payments, and prices, it is the policy of the Federal
Open Market Committee to foster monetary and financial conditions that
will resist inflationary pressures while encouraging moderate economic
expansion and contributing to a sustainable pattern of international trans­
actions. The Committee agreed that these objectives would be furthered
by growth of M -l, M-2, and M-3 from the fourth quarter of 1978 to
the fourth quarter of 1979 within ranges of IV2 to 4Vi percent, 5 to 8
percent, and 6 to 9 percent, respectively. The associated range for bank
credit is IV2 to IOV2 percent. These ranges will be reconsidered in July
or at any time as conditions warrant.
In the short run, the Committee seeks to achieve bank reserve and
money market conditions that are broadly consistent with the longer-run
ranges for monetary aggregates cited above, while giving due regard to
the program for supporting the foreign exchange value of the dollar and
to developing conditions in domestic financial markets. In the period
before the next regular meeting, System open market operations are to
be directed at maintaining the weekly average federal funds rate at about




333

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Federal Reserve Bulletin □ April 1979




the current level, provided that over the February-March period the annual
rates of growth of M-1 and M-2, given approximately equal weight, appear
to be within ranges of 3 to 7 percent and 5 to 9 percent, respectively.
If growth of M -1 and M-2 for the two-month period appears to be outside
the indicated limits, the Manager will promptly notify the Chairman, who
will then consult with the Committee to determine whether the situation
calls for supplementary instructions.
Votes for this action: Messrs. Miller, Volcker, Baughman,
Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and
Mayo. Vote against this action: Mr. Coldwell. Absent: Mr.
Winn. (Mr. Mayo voted as alternate for Mr. Winn.)
M r. Coldwell dissented from this action because he preferred
to direct open m arket operations early in the com ing period toward
a slight firming in m oney m arket conditions. He felt that the greatest
danger currently was an intensification of inflationary pressures and
that the longer-range prospects for inflation were unacceptable.
Subsequent to the m eeting, at the beginning of M arch, projec­
tions suggested that over the February-M arch period M-1 would
grow at an annual rate m oderately below the lower limit of the
range of 3 to 7 percent that had been specified by the Com mittee
and M-2 would grow at a rate just below the lower limit of its range
of 5 to 9 percent. On March 2 the Committee held a telephone meeting
to determine whether the situation called for supplementary instruc­
tions. In light of contradictory evidence concerning underlying trends
in economic activity following the strong performance in the fourth
quarter of 1978, Chairman Miller recommended that the Manager be
instructed to continue to aim for a weekly average federal funds rate
of about 10 percent or slightly higher. The members concurred in
the Chairm an’s recommendation.
By unanimous vote, the Committee modified the domestic policy
directive adopted at its meeting on February 6, 1979, to call for continu­
ance of open market operations directed toward maintaining the weekly
average federal funds rate at about 10 percent or slightly above.
Votes for this action: Messrs. Miller, Volcker, Black,
Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, Messrs.
Wallich, and Guffey. Absent: Mr. Balles. (Mr. Guffey voted
as alternate for Mr. Balles.)

Record of Policy Actions of FOMC

2. Authorization for Dom estic Open Market Operations
At this meeting the Committee voted to set a limit of $5 billion on
changes between Committee meetings in holdings of U.S. Government
and federal agency securities specified in paragraph 1(a) of the
authorization for domestic open market operations, effective for the
period ending with the close of business on March 20, 1979. During
the period since its meeting on December 19, 1978, the Committee
had temporarily increased the limit specified in paragraph 1(a) in two
steps, from $3 billion to $5 billion and subsequently to $6 billion
until the close of business on February 6, 1979. The action to set
the limit at $5 billion for the coming period was taken to provide
flexibility for operations in view of the magnitude of float and other
factors that might affect reserves in the weeks ahead and in view of
the length of the interval until the next Committee meeting scheduled
for March 20, 1979.
Votes for this action: Messrs. Miller, Volcker, Baughman,
Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich,
Willes, and Mayo. Votes against this action: None. Absent:
Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.)

R ecords o f p o lic y action s taken by the Federal O pen M arket C om m ittee at each
m eetin g , in the form in w h ich they w ill appear in the B o a rd ’s Annual R e p o rt ,
are released about a m onth after the m eetin g and are su b seq u en tly p u b lish ed in
the B u l l e t i n .




335

336

Law Department
S ta tu te s , re g u la tio n s , in te r p r e ta tio n s , a n d d e c is io n s

I m p l e m e n t a tio n o f R e g u l a t i o n E

The Board of Governors has adopted in final
form portions of Regulation E, Electronic Fund
Transfers, to implement two sections of the Elec­
tronic Fund Transfer Act that became effective on
February 8, 1979.
Effective March 30, 1979, Regulation E is
adopted as follows:
Section 205.1 — Authority, Purpose , and Scope
(a) Authority. This regulation, issued by the
Board of Governors of the Federal Reserve Sys­
tem, implements Title IX (Electronic Fund
Transfer Act) of the Consumer Credit Protection
Act, as amended (15 U.S.C. 1601 et seq.).
(b) Purpose and Scope. In November 1978, the
Congress enacted the Electronic Fund Transfer
Act. The Congress found that the use of electronic
systems to transfer funds provides the potential for
substantial benefits to consumers, but that the
unique characteristics of these systems make the
application of existing consumer protection laws
unclear, leaving the rights and liabilities of users
of electronic fund transfer systems undefined. The
Act establishes the basic rights, liabilities, and
responsibilities of consumers who use electronic
money transfer services and of financial institu­
tions that offer these services. This regulation is
intended to carry out the purposes of the Act,
including, primarily, the protection of individual
consumers engaging in electronic transfers. Except
as otherwise provided, this regulation applies to
all persons who are financial institutions as defined
in § 205.2(i).

Section 205.2—Definitions
For the purposes of this regulation, the follow­
ing definitions apply, unless the context indicates
otherwise:
(a)(1) “ Access device” means a card, code, or
other means of access to a consumer’s account,
or any combination thereof, that may be used by



the consumer for the purpose of initiating elec­
tronic fund transfers.
(2)
An access device becomes an “ accepted
access device” when the consumer to whom the
access device was issued:
(i) requests and receives, or signs, or uses, or
authorizes another to use, the access device for
the purpose of transferring money between ac­
counts or obtaining money, property, labor or
services;
(ii) requests validation of an access device is­
sued on an unsolicited basis; or
(iii) receives an access device issued in renewal
of, or in substitution for, an accepted access de­
vice, whether such access device is issued by the
initial financial institution or a successor.
(b) “ Account” means a demand deposit
(checking), savings, or other consumer asset ac­
count (other than an occasional or incidental credit
balance in a credit plan) held either directly or
indirectly by a financial institution and established
primarily for personal, family, or household pur­
poses.
(c) “ Act” means the Electronic Fund Transfer
Act (Title IX of the Consumer Credit Protection
Act, 15 U.S.C. 1601 et seq.).
(d) “ Business day” means any day on which
the offices of the consumer’s financial institution
are open to the public for carrying on substantially
all business functions.
(e) “ Consumer” means a natural person.
(f) “ Credit” means the right granted by a fi­
nancial institution to a consumer to defer payment
of debt, incur debt and defer its payment, or
purchase property or services and defer payment
therefor.
(g) “ Electronic fund transfer” means any
transfer of funds, other than a transaction origi­
nated by check, draft, or similar paper instrument,
that is initiated through an electronic terminal,
telephone, or computer or magnetic tape for the
purpose of ordering, instructing, or authorizing a
financial institution to debit or credit an account.
The term includes, but is not limited to, point-ofsale transfers, automated teller machine transfers,

Law Department

direct deposits or withdrawals of funds, and
transfers initiated by telephone.
(h) “ Electronic terminal” means an electronic
device, other than a telephone operated by a con­
sumer, through which a consumer may initiate an
electronic fund transfer. The term includes, but
is not limited to, point-of-sale terminals, auto­
mated teller machines, and cash dispensing ma­
chines.
(i) “ Financial institution” means a state or na­
tional bank, a state or federal savings and loan
association, a state or federal mutual savings bank,
a state or federal credit union, or any other person
who, directly or indirectly, holds an account be­
longing to a consumer. The term also includes any
person who issues an access device and agrees
with a consumer to provide electronic fund transfer
services.
Two or more financial institutions that jointly
provide electronic fund transfer services may con­
tract among themselves to fulfill the requirements
that the Act and this regulation impose on any
or all of them.
(j) “ State” means any state, territory or pos­
session of the United States, the District of Co­
lumbia, the Commonwealth of Puerto Rico, or any
political subdivision of any of the above.
(k) “ Unauthorized electronic fund transfer”
means an electronic fund transfer from a con­
sumer’s account initiated by a person other than
the consumer without actual authority to initiate
the transfer and from which the consumer receives
no benefit. The term does not include any elec­
tronic fund transfer (1) initiated by a person who
was furnished with the access device to the con­
sumer’s account by the consumer, unless the con­
sumer has notified the financial institution involved
that transfers by that person are no longer author­
ized, (2) initiated with fraudulent intent by the
consumer or any person acting in concert with the
consumer, or (3) that constitutes an error commit­
ted by the financial institution.
Section 205.3—Exemptions
This regulation does not apply to the following:
(a) Check guarantee or authorization services.
Any service that guarantees payment or authorizes
acceptance of a check, draft, or similar paper
instrument and that does not directly result in a
debit or credit to a consumer’s account.
(b) W ire transfers. Any wire transfer of funds
for a consumer through the Federal Reserve Com­




337

munications System or other similar network that
is used primarily for transfers between financial
institutions or between businesses.
(c) Certain securities or com m odities transfers.
Any transfer the primary purpose of which is the
purchase or sale of securities or commodities
through a broker-dealer registered with, or regu­
lated by, the Securities and Exchange Commission
or the Commodity Futures Trading Commission.
(d) A utom atic transfers from savings to dem and
deposit accounts. Any automatic transfer from a
savings account to a demand deposit (checking)
account under an agreement between a consumer
and a financial institution for the purpose of cov­
ering an overdraft or maintaining a specified mini­
mum balance in the consumer’s checking account
as permitted by 12 CFR Part 217 (Regulation Q)
and 12 CFR Part 329.
(e) Certain telephone-initiated transfers. Any
transfer of funds that (1) is initiated by a telephone
conversation between a consumer and an officer
or employee of a financial institution and (2) is
not under a telephone bill-payment or other prear­
ranged plan or agreement in which periodic or
recurring transfers are contemplated.
(f) Trust accounts. Any trust account held by
a financial institution under a bona fide trust
agreement.

Section 205.4—Issuance of Access Devices
(a)
G eneral rule. A financial institution may
issue an access device to a consumer only:
(1) in response to an oral or written request or
application for the device;1 or
(2) as a renewal of, or in substitution for, an
accepted access device, whether issued by the
initial financial institution or a successor.
(3) as a renewal of, or in substitution for, an
access device issued before February 8, 1979
(other than an accepted access device, which can
be renewed or substituted under paragraph (a)(2)
of this section), provided that the disclosures set
forth in paragraphs (d)(1), (2), and (3) of this
section accompany the renewal or substitute de­
vice; except that for a renewal or substitution that
occurs before July 1, 1979, the disclosures may
be sent within a reasonable time after the renewal
or substitute device is issued.
1.
In the case of a joint account, a financial institution may
issue an access device to each account holder for whom the
requesting bolder specifically requests an access device.

338

Federal Reserve Bulletin □ April 1979

(b) Exception. Notwithstanding the provisions
of paragraph (a)(1) of this section, a financial
institution may distribute an access device to a
consumer on an unsolicited basis if:
(1) the access device is not validated;
(2) the distribution is accompanied by a com­
plete disclosure, in accordance with paragraph (d)
of this section, of the consumer’s rights and liabi­
lities that will apply if the access device is vali­
dated;
(3) the distribution is accompanied by a clear
explanation that the access device is not validated
and how the consumer may dispose of the access
device if validation is not desired; and
(4) the access device is validated only in re­
sponse to the consumer’s oral or written request
or application for validation and after verification
of the consumer’s identity by any reasonable
means, such as by photograph, fingerprint, per­
sonal visit, or signature comparison. An access
device is considered validated when a financial
institution has performed all procedures necessary
to enable a consumer to use it to initiate an
electronic fund transfer.
(c) Relation to Truth in Lending. (1) The Act
and this regulation govern
(1) issuance of access devices;
(ii) addition to an accepted credit card, as de­
fined in 12 CFR 226.2(a) (Regulation Z), of the
capability to initiate electronic fund transfers; and
(iii) issuance of access devices that permit
credit extensions only under a preexisting agree­
ment between a consumer and a financial institu­
tion to extend the credit when the consumer’s
account is overdrawn or to maintain a specified
minimum balance in the consumer’s account.
(2) The Truth in Lending Act (15 U.S.C. 1601
et seq.) and 12 CFR Part 226 (Regulation Z),
which prohibit the unsolicited issuance of credit
cards, govern
(i) issuance of credit cards as defined in 12 CFR
226.2(r);
(ii) addition of a credit feature to an accepted
access device; and
(iii) issuance of credit cards that are also access
devices, except as provided in paragraph (c)(l)(iii)
of this section.
(d) Transitional disclosure requirements. Until
May 10, 1980, a financial institution may satisfy
the disclosure requirements of paragraph (b)(2) of
this section by disclosing to the consumer, in a
written statement that the consumer may retain,
the following terms in readily understandable lan­




guage:
(1) The consumer’s liability under § 205.5, or
under other applicable law or agreement, for un­
authorized electronic fund transfers and, at the
financial institution’s option, notice of the advis­
ability of prompt reporting of any loss, theft, or
unauthorized transfers.
(2) The telephone number and address of the
person or office to be notified in the event the
consumer believes that an unauthorized electronic
fund transfer has been or may be made.
(3) The financial institution’s business days, as
determined under § 205.2(d).
(4) The type of electronic fund transfers that
the consumer may initiate, including any limita­
tions on the frequency or dollar amount of the
transfers. The details of the limitations need not
be disclosed if their confidentiality is necessary to
maintain the security of the electronic fund transfer
system.
(5) Any charges for electronic fund transfers or
for the right to make transfers.
(6) The conditions under which the financial
institution in the ordinary course of business will
disclose information about the consumer’s account
to third parties.
(7) Whether or not the financial institution will
provide docum entation of electronic fund
transfers, such as receipts or periodic statements,
to the consumer.
(8) Whether or not the financial institution has
error resolution procedures and, if so, a summary
of those procedures.
(9) The conditions under which the financial
institution will assume liability for the institution’s
failure to make electronic fund transfers.
S ection 2 0 5 .5 — L ia b ility o f C on su m er
fo r U nau th orized T ran sfers

(a) G eneral rule. A consumer is liable, within
the limitations described in paragraph (b) of this
section, for unauthorized electronic fund transfers
involving the consumer’s account only if the
access device used for the transfers is an accepted
access device and the financial institution has pro­
vided a means (such as by signature, photograph,
fingerprint, or electronic or mechanical confirma­
tion) to identify the consumer to whom the access
device was issued.
(b) Lim itations on amount of liability. The
amount of a consumer’s liability for an unauth­
orized electronic fund transfer or a series of

Law Department

transfers arising from a single loss or theft of the
access device shall not exceed $50 or the amount
of unauthorized electronic fund transfers that occur
before notice to the financial institution under
paragraph (c) of this section, whichever is less,
unless one or both of the following exceptions
apply:
(1) If the consumer fails to notify the financial
institution within 2 business days after learning
of the loss or theft of the access device, the
consumer’s liability shall not exceed the lesser of
$500 or the sum of
(1) $50 or the amount of unauthorized electronic
fund transfers that occur before the close of the
2 business days, whichever is less, and
(ii)
the amount of unauthorized electronic fund
transfers that the financial institution establishes
would not have occurred but for the failure of the
consumer to notify the institution within 2 business
days after the consumer learns of the loss or theft
of the access device, and that occur after the close
of 2 business days and before notice to the finan­
cial institution.
(2) If the consumer fails to report within 60
days of transmittal of the periodic statement any
unauthorized electronic fund transfer that appears
on the statement, the consumer’s liability shall not
exceed the sum of
(i) the lesser of $50 or the amount of unauth­
orized electronic fund transfers that appear on the
periodic statement or that occur during the 60-day
period, and
(ii) the amount of unauthorized electronic fund
transfers that occur after the close of the 60 days
and before notice to the financial institution and
that the financial institution establishes would not
have occurred but for the failure of the consumer
to notify the financial institution within that time.
(3) Paragraphs (b)(1) and (2) of this section
may both apply in some circumstances. Paragraph
(b)(1) shall determine the consumer’s liability for
any unauthorized transfers that appear on the peri­
odic statement and occur before the close of the
60-day period, and paragraph (b)(2)(ii) shall de­
termine liability for transfers that occur after the
close of the 60-day period.
(4) If a delay in notifying the financial institu­
tion was due to extenuating circumstances, such
as extended travel or hospitalization, the time
periods specified above shall be extended to a
reasonable time.
(5) If applicable state law or an agreement
between the consumer and financial institution




339

imposes lesser liability than that provided in para­
graph (b) of this section, the consumer’s liability
shall not exceed that imposed under that law or
agreement.
(c) N otice to financial institution. For purposes
of this section, notice to a financial institution is
given when a consumer takes such steps as are
reasonably necessary to provide the financial insti­
tution with the pertinent information, whether or
not any particular officer, employee, or agent of
the financial institution does in fact receive the
information. Notice may be given to the financial
institution, at the consumer’s option, in person,
by telephone, or in writing. Notice in writing is
considered given at the time of receipt or, whether
or not received, at the expiration of the time
ordinarily required for transmission, whichever is
earlier. Notice is also considered given when the
financial institution becomes aware of circum­
stances that lead to the reasonable belief that an
unauthorized electronic fund transfer involving the
consumer’s account has been or may be made.
(d) Relation to Truth in Lending. (1) A con­
sumer’s liability for an unauthorized electronic
fund transfer shall be determined solely in accor­
dance with this section if the electronic fund
transfer
(1) was initiated by use of an access device that
is also a credit card as defined in 12 CFR 226.2(r),
or
(ii)
involves an extension of credit under an
agreement between a consumer and a financial
institution to extend the credit when the con­
sumer’s account is overdrawn or to maintain a
specified minimum balance in the consumer’s ac­
count.
(2) A consumer’s liability for unauthorized use
of a credit card that is also an access device but
that does not involve an electronic fund transfer
shall be determined solely in accordance with the
Truth in Lending Act and 12 CFR Part 226 (Reg­
ulation Z).
A p p e n d ix A — M o d e l D isc lo su re C lau ses

This appendix contains model disclosure clauses
for optional use by financial institutions to facili­
tate compliance with the disclosure requirements
of §§ 205.4(a)(3), (b), and (d). Section 915(d)(2)
of the Act provides that use of these clauses in
conjunction with other requirements of the regula­
tion will protect financial institutions from liability
under §§915 and 916 of the Act to the extent

340

Federal Reserve Bulletin □ April 1979

that the clauses accurately reflect the institutions’
electronic fund transfer services.
Financial institutions need not use any of the
provided clauses, but may use clauses of their own
design in conjunction with the model clauses. The
inapplicable portions of words or phrases in pa­
rentheses should be deleted. Financial institutions
may make alterations, substitutions or additions
in the clauses in order to reflect the services
offered, such as technical changes (e.g., substitu­
tion of a trade name for the word “ card,” deletion
of inapplicable services), or substitution of lesser
liability limits in § A(2).
Section A (l)— Disclosure that access device
is not validated and how to dispose of device
if validation is not desired (§ 205.4(b)(3))
(a) Accounts using cards. You cannot use the
enclosed card to transfer money into or out of your
account until we have validated it. If you do not
want to use the card, please (destroy it at once
by cutting it in half).
[Financial institution may add validation
instructions here.]
(b) A ccounts using codes. You cannot use the
enclosed code to transfer money into or out of
your account until we have validated it. If you
do not want to use the code, please (destroy this
notice at once).
[Financial institution may add validation
instructions here.]
Section A(2)— Disclosure of consumer’s
liability for unauthorized transfers and
optional disclosure of advisability of prompt
reporting (§ 2 0 5 .4 (d )(ll)

and we can prove we could have stopped someone
from using your (card)(code) without your per­
mission if you had told us, you could lose as much
as $500.
Also, if your statement shows transfers that you
did not make, tell us at once. If you do not tell
us within 60 days after the statement was mailed
to you, you may not get back any money you lost
after the 60 days if we can prove that we could
have stopped someone from taking the money if
you had told us in time.
If a good reason (such as a long trip or a hospital
stay) kept you from telling us, we will extend the
time periods.
Section A(3)—Disclosure of telephone
number and address to be notified in event
of unauthorized transfer (§ 205.4(d)(2))
(a)
A ddress and telephone number. If you be­
lieve your (card)(code) has been lost or stolen or
that someone has transferred or may transfer
money from your account without your permis­
sion, call:
[Telephone number]
or write:
[Name of person or office to be notified]
[Address]
Section A(4)—Disclosure of what constitutes
business day of institution (§ 205.4(d)(3))
(a)
Business day disclosure. Our business days
are (Monday through Friday) (Monday through
Saturday) (any day including Saturdays and Sun­
days). Holidays are (not) included.

Section A(5)—Disclosure of types of
available transfers and limits on transfers
(a)
L iability disclosure. (Tell us AT ONCE if (§ 205.4(d)(4))
you believe your (card)(code) has been lost or
(a)
A ccount access. You may use your
stolen. Telephoning is the best way of keeping
(card)(code) to
your possible losses down. You could lose all the
(1) W ithdraw cash from your (checkmoney in your account (plus your maximum over­
ing)(or)(savings) account.
draft line of credit). If you tell us within 2 business
(2) Make deposits to your (checking)(or)(savdays, you can lose no more than $50 if someone
ings) account.
used your (card)(code) without your permission.)
(3) Transfer funds between your checking and
(If you believe your (c:ard)(code) has been lost or
savings accounts whenever you request.
stolen, and you tell us within 2 business days after
(4) Pay for purchases at places that have agreed
you learn of the loss or theft, you can lose no
to accept the (card)(code).
more than $50 if someone used your (card)(code)
without your permission.)
(5) Pay bills directly (by telephone) from your
If you do not tell us within 2 business days after
(checking)(or)(savings) account in the amounts
you learn of the loss or theft of your (card)(code),
and on the days you request.




Law Department

Some of these services may not be available
at all terminals.
(b) Lim itations on frequency of transfers.
(1) You may make only [insert number, e.g.,
3] cash withdrawals from our terminals each [in­
sert time period, e.g., week].
(2) You can use your telephone bill-payment
service to pay [insert number] bills each ([insert
time period])(telephone call).
(3) You can use our point-of-sale transfer serv­
ice for [insert number] transactions each [insert
time period].
(4) For security reasons, there are (other) limits
on the number of transfers you can make using
our (terminals)(telephone bill-payment service)
(point-of-sale transfer service).
(c) Lim itations on dollar amounts of transfers.
(1) You may withdraw up to [insert dollar
amount] from our terminals each ([insert time
period])(time you use the (card) (code)).
(2) You may buy up to [insert dollar amount]
worth of goods or services each ([insert time
period])(time you use the (card) (code)) in our
point-of-sale transfer service.
S ection A ( 6 ) — D isc lo su re o f ch arges fo r
tran sfers o r righ t to m ake transfers
(§ 2 0 5 .4 (d )(5 ))

(a) P er transfer charge. We will charge you
[insert dollar amount] for each transfer you make
using our (automated teller machines)(telephone
bill-payment service)(point-of-sale transfer serv­
ice).
(b) Fixed charge. We will charge you [insert
dollar amount] each [insert time period] for our
(automated teller machine service)(telephone billpayment service)(point-of-sale transfer service).
(c) A verage or minimum balance charge. We
will only charge you for using our (automated
teller machines)(telephone bill-payment service)(point-of-sale transfer service) if the
(average)(minimum) balance in your (checking
account)(savings account)(accounts) falls below
[insert dollar amount]. If it does, we will charge
you [insert dollar amount] each (transfer) ([insert
time period]).

341

or
(2) in order to verify the existence and condi­
tion of your c%ccount for a third party, such as a
credit bureau or merchant.
or
(3) in order to comply with government agency
or court orders.
or
(4) if you give us your written permission.
A mendment

to

R e g u l a t io n Q

The Board of Governors has amended its Regu­
lation Q, Interest on Deposits, to prohibit the
compounding of interest by member banks on time
deposits of $10,000 or more with maturities of
26 weeks whose ceiling rate of interest is equal
to the discount rate on the most recently issued
six-month United States Treasury bills (auction
average).
Effective March 15, 1979, §§ 217.6 and 217.7
are amended to read as follows:
Section 2 1 7 .6 —
A d v e rtisin g o f In terest on D e p o sits
sfc

s(c

s{s

(j) Any advertisement, announcement, or so­
licitation relating to interest paid by a member
bank on a time deposit of $10,000 or more with
a maturity of 26 weeks at a rate not in excess
of the rate established (auction average on a dis­
count basis) for United States Treasury bills with
maturities of six months shall include a clear and
conspicuous notice that Federal regulations pro­
hibit the compounding of interest during the term
of the deposit.
S ection 2 1 7 .7 —
M axim um R a te s o f In terest
P a ya b le b y M e m b e r B an ks
on Tim e an d S a vin g s D e p o sits

(f)
Variable rate time deposits of less than
$ 1 0 0 ,0 0 0 .*** Member banks may not compound
interest during the term of this deposit.

S ection A (7 )— D isc lo su re o f accou n t
inform ation to th ird p a rtie s (§ 2 0 5 .4 (d )(6 ))
R e sc issio n

of

R e g u l a t io n S

(a)
A ccou nt information disclosure. We will
disclose information to third parties about your
The Board of Governors, as part of its Regula­
account or the transfers you make:
tory Improvement Project, has reviewed Regula­
(1)
where it is necessary for completing tion S, Bank Service Arrangements, which imple­
transfers.
ments the Bank Service Corporation Act. Effective



342

Federal Reserve Bulletin □ April 1979

March 10, 1979, the Board has decided to rescind
Regulation S as no longer necessary.
In a related action, the Board has decided to
revise and update its interpretations of the Bank
Service Corporation Act.
Effective March 10, 1979, the table of contents
of 12 CFR Part 250 is amended by adding at the
end of the table a new heading and ihree new
section titles to read as follows:
Bank Service Arrangements
250.300
Kinds of bank servicers subject to
Board examination under the Bank
Service Corporation Act.
250.301
Scope of investment authority and no­
tification requirement under the Bank
Service Corporation Act.
250.302
Applicability of Bank Service Cor­
poration Act to bank credit card ser­
vice organization.
12 CFR Part 250 is amended by adding a new
section 250.30 immediately after a new heading,
“ Bank Service Arrangements,” to read as follows.
250.300

Kinds of bank services subject to
Board examination under the Bank
Service Corporation Act.
Summary. The performance of bank services for
State member banks is subject to the Board’s
regulation and examination, regardless of the na­
ture of the bank servicer, including servicers that
are national banks; State nonmember insured
banks; non-profit, no-stock credit card servicing
organizations; and servicing subsidiaries of bank
holding companies.
Text, (a) Since the enactment of the Bank
Service Corporation Act (the “ Act” ) (12 U.S.C.
1861-65), the Board has on several occasions
considered whether performance of “ bank serv­
ices” (as that term is defined in section 1(b) of
the Act) for State member banks is subject to
regulation and examination by the Board under
section 5 of the Act if (1) the bank servicer is
not a “ bank service corporation” (as that term
is defined in the Act), or (2) the bank servicer
is a bank itself. In each instance, based on the
reasoning set forth below, the Board expressed the
view that section 5 of the Act applied to any
organization that performed bank services for State
member banks, including national banks; another
State member bank; State nonmember insured
banks; servicing subsidiaries of bank holding
companies; and non-profit, no-stock credit card
servicing organizations.




(b) The Senate Committee on Banking and
Currency stated with regard to section 5 of the
Act, as enacted in 1962, that the Federal supervi­
sory agencies “ must be able to examine all of the
banks’ records, and they must be able to exercise
proper supervision over all the banks’ activities,
whether performed by the banks’ employees on
their premises or by anyone else on or off the
banks’ premises. This examination and this super­
vision cannot be frustrated by a transfer of the
banks’ records to some other organization or by
having some other organization carry out all or
part of the banks’ functions.” (S. Rep. No. 2105,
87th Cong. 3 (1962)). Similarly, the Committee
on Banking and Currency of the House of Repre­
sentatives stated that “ it would obviously be un­
wise to permit banks to avoid the examination and
supervision of vital banking functions by the
simple expedient of farming out such functions.”
(H.R. Rep. No. 2062, 87th Cong. 3 (1962)).
(c) Section 5 of the Act is not limited by its
terms to “ bank service corporations” as defined
in the Act; nor, in the Board’s opinion based on
the legislative history of the Act, should such a
limitation be implied. The Board concludes that
the performance of bank services for State member
banks by organizations that are not bank service
corporations is also subject to Board regulation and
examination.
(d) If the bank servicer is a national bank or
a State nonmember insured bank, its performance
of bank services for State member banks is subject
to Board regulation and examination, despite the
fact that the servicer is subject primarily to regu­
lation and examination by one of the other Federal
banking agencies. By the same token, the per­
formance of bank services by a State member bank
for a national bank or State nonmember insured
bank is subject to regulation and examination by
the Comptroller of the Currency or the Federal
Deposit Insurance Corporation, respectively. The
purpose of section 5 of the Act is to make certain
that the appropriate Federal banking agency will
be able effectively to exercise its responsibilities
with respect to a bank subject primarily to its
supervision.
(e) It is important to note that the scope of the
Board’s regulation and examination under section
5 of the Act does not extend to all affairs of the
bank servicer, but only to the “ bank services”
performed for a State member bank and only to
the same extent as if the services were being

Law Department

performed by the State member bank itself on its
own premises.
12 CFR Part 250 is amended by adding a new
section 250.301 to read as follows:
250.301
Scope of investment authority and no­
tification requirement under the Bank
Service Corporation Act.
Summary, (a) The authority of State member
banks under the Bank Service Corporation Act to
invest in bank service corporations is limited to
investments in corporations that perform “ bank
services” solely.
(b) A State member bank is required by the Act
to notify the Board only of the performance of
“ bank services” for it.
(c) “ Bank services” will not usually be re­
garded as including legal, advisory, and adminis­
trative services, such as transportation or guard
services.
Text, (a) Section 2(a) of the Bank Service Cor­
poration Act (12 U.S.C. 1861-65) provides that
“ no limitation or prohibition otherwise imposed
by any provision of Federal law exclusively relat­
ing to banks shall prevent any two or more banks
from investing not more than 10 per centum of
the paid-in and unimpaired capital and unimpaired
surplus of each of them in a bank service corpora­
tion.” This 10 per cent investment ceiling applies
to loans and other advances of funds, as well as
the purchase of stock. The Act, however, does
not authorize a State bank to invest in a bank
service corporation if the bank is not permitted
to do so under the applicable State law.
(b) “ Bank service corporation” is defined in
section 1(c) of the Act to mean “ a corporation
organized to perform bank services for two or
more banks, each of which owns part of the capital
stock of such corporation, and at least one of
which is subject to examination by a Federal
supervisory agency.” Section 4 of the Act states
that “ no bank service corporation may engage in
any activity other than the performance of bank
services for banks.” Thus, the investment author­
ity created by section 2(a) is limited to corpora­
tions that are engaged solely in the provision of
“ bank services” to banks, as that term is defined
in the Act.
(c) In addition to its grant of investment au­
thority, the Act also requires State member banks
to notify the Board within 30 days of the execution
of a contract for “ bank services” or the actual
provision of such services, whichever occurs first.
Moreover, the Act authorizes the Board to regulate




343

and examine the performance of “ bank services.”
Thus, the scope of the Act’s notification and ex­
amination requirements also is limited to “ bank
services.”
(d) The term “ bank services” is defined in
section 1(b) of the Act to mean “ services such
as check and deposit sorting and posting, compu­
tation and posting of interest and other credits and
charges, preparation and mailing of checks, state­
ments, notices, and similar items, or any other
clerical, bookkeeping, accounting, statistical, or
similar functions performed for a bank.”
(e) Bearing importantly upon the meaning of
“ bank services” is the following quotation from
the Report of the Senate Committee on Banking
and Currency: “ The authority to examine and
supervise banks is broad and must be vigorously
exercised. At the same time sound discretion must
be used. Banks have always employed others to
do many things for them, and they will have to
continue to do so, and the bill is not intended to
prevent this or to make it more difficult. For
example, banks have employed lawyers to prepare
trust and estate accounts and to prosecute judicial
proceedings for the settlement of such accounts.
Banks have employed accountants to prepare
earnings statements and balance sheets. Banks
have employed public relations and advertising
firms. And banks have employed individuals or
firms to perform all kinds of administrative activi­
ties, including armored car and other trans­
portation services, guard services and, in many
cases, other mechanical services needed to run the
banks’ buildings. It is not expected that the bank
supervisory agencies would find it necessary to
examine or regulate any of these agents or repre­
sentatives of a bank, except under the most un­
usual circumstances. The authority is intended to
be limited to banking functions as such.” (S. Rep.
No. 2105, 87th Cong. 3 (1962)).
(f) On the basis of the Act’s definition of “ bank
services” , the limitation contained in section 4 of
the Act, and the preceding quotation from the
Act’s legislative history, it is apparent that the term
“ bank services” is essentially limited to clerical
and similar services. For example, the term would
not usually be regarded as including legal, advi­
sory, and adminstrative services, such as trans­
portation or guard services.
(g) Thus, State member banks generally may
rely on the Act to justify investment only in a
corporation that is engaged solely in performing
one or more of the services contained in the

344

Federal Reserve Bulletin □ April 1979

by “ the making of a loan, or otherwise, except
definition of “ bank services” in section 1(b), or
a payment for rent earned, goods sold and deliv­
a service similar to one of those services, and only
if those services are provided solely to banks.
ered, or services rendered prior to the making of
Investment in a corporation providing any other
such payment” (section 1(d) of the Act), the
service organization is not a “ bank service cor­
services, such as the type of services described
poration” within the meaning of section 1(c) of
in the above quotation from the Act’s legislative
the Act.
history, generally is not permitted on the basis of
(d)
However, the Board concluded that the
this Act, unless such services are legitimately
functions described above do constitute “ bank
incidental to the provision of “ bank services” by
services” as defined in section 1(b) of the Act.
that corporation.
(h)
Since the notification required by section 5 Accordingly, the State member bank is required
to notify the Board (through the appropriate Fed­
of the Act, as amended, also is based on the
eral Reserve Bank) of the performance of the
provision of “ bank services,” such notification
services for the bank in accordance with section
need only be provided with regard to the provision
5 of the Act.
of one or more of the services enumerated in
section 1(b) of the Act or a service similar to one
of those services.
12 CFR Part 250 is amended by adding a new
A m e n d m e n t to R e g u l a t io n Z
section 250.302 to read as follows:
The Board of Governors has amended its Regu­
250.302
Applicability of Bank Service Cor­
lation Z, Truth in Lending, to extend the prohibi­
poration Act to bank credit card serv­
tion against surcharges to February 27, 1981.
ice organization.
Effective March 5, 1979 § 226.4(i)(4) is
Summary. Although a non-profit, no-stock
amended to read as follows:
service organization in which no bank has made
No creditor in any sales transaction may impose
an investment is not a “ bank service corporation”
as defined in the Bank Service Corporation Act,
a surcharge. This paragraph shall cease to be
effective on February 27, 1981.
that organization’s credit card servicing activities
are “ bank services” as defined in the Act and thus
subject to the notification requirement of section
5 of the Act.
A m e n d m e n t to R e g u l a t io n B B
Text, (a) The Board of Governors has consid­
ered whether the Bank Service Corporation Act
The Board of Governors has amended its Regu­
(12 U.S.C. 1861-65), is applicable where a bank
lation BB, Community Reinvestment, to reflect an
credit card plan of a State member bank and other
amendment to the Community Reinvestment Act
banks used the facilities of a non-profit, no-stock
of 1977 contained in the Financial Institutions
service organization.
Regulatory and Interest Rate Control Act of 1978
(b) The functions of the service organization
that relates to financial institutions whose business
include the following: (1) performing cardholder
predominantly consists of serving the needs of
accounting for participating banks; (2) developing
military personnel who are not located within a
information concerning each credit card and
defined geographic area.
holder, including such holder’s current balance
Effective April 26, 1979, Section 228.3 is
owing to the card issuing bank and the amount
amended as follows:
of such balance that is deliquent; (3) assisting in
Paragraph (b) is revised by deleting “ A” at the
procedures relating to the presentation and settle­
beginning of the first sentence of the paragraph
ment of drafts and credit memoranda; (4) devel­
and inserting, “ Except as provided in paragraph
(c) of this section, a” .
oping procedures relating to credit card security
control; (5) upon telephonic request, advising
A new paragraph (c) is added:
merchants and participating banks respecting
credit authorizations above certain specified limits;
and (6) compiling lists of participating merchants.
(c)
A State member bank whose business pre­
dominantly consists of serving persons who are
(c) The Board expressed the view that because
active duty or retired military personnel or their
the service organization has no stock and the State
member bank does not otherwise “ invest” therein
dependents and who are located outside of its local




Law Department

community or communities, may delineate a
“ military community” for those customers, in
addition to its local community or communities.
Provisions of this part concerning local communi­
ties shall also apply to military communities, ex­
cept that military communities shall be delineated
by a written description rather than a map.
A m endm ent

to

R u le s

of

O r g a n iz a t io n

345

B a n k H o l d in g C o m p a n y
B a n k M e rg er O r d e r s
I ssu e d b y th e B o a r d of G o v e r n o r s
and

O r d e r s U n d e r S e c t io n 3
B a n k H o l d in g C o m p a n y A c t

of

A m erican Pioneer Life Insurance Company,
Trumann, A rkansas
O rder A pprovin g

Retention of A ddition al Shares of Bank
The Secretary of the Board has approved an
amendment to the Board’s Rules of Organization
American Pioneer Life Insurance Company,
to reflect recent organizational changes.
Trumann, Arkansas, a bank holding company
Effective October 17, 1978, section 3 of the
within the meaning of the Bank Holding Company
Rules of Organization is amended as follows:
Act, has applied for the board’s approval under
1.
A new paragraph (c) is added to read as
§ 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to
follows:
retain additional voting shares of First National
Bank of Poinsett County, Trumann, Arkansas
S ection 3— C en tral O rgan ization .
(“ Bank” ).
The Board’s central organization consists of the
Notice of the application, affording opportunity
following Offices, Divisions and officials;
for interested persons to submit comments and
views, has been given in accordance with § 3(b)
of the Act. The time for filing comments and views
(c)
Office of Staff D irector for Federal R eserve has expired, and the board has considered the
Bank A ctivities is responsible for overseeing the
application and all comments received in light of
Divisions of Federal Reserve Bank Operations and
the factors set forth in § 3(c) of the Act (12 U.S.C.
Federal Reserve Bank Examinations and Budgets,
§ 1842(c)).
assisting the Board’s Committee on Federal Re­
Applicant is a one-bank holding company by
serve Bank Activities, and coordinating the func­
virtue of its ownership of approximately 54 percent
tions of other Board Divisions that relate to Federal
of the outstanding voting shares of Bank.1 Appli­
Reserve Bank matters.
cant seeks board approval to retain 1000 newly-is­
2. Paragraphs (c) through (p) are redesignated
sued shares of Bank that were acquired by its
as (d) through (q).
wholly-owned subsidiary, Hyneman & Associates,
3. Renumbered paragraphs (i) and (j) are
Inc., Trumann, Arkansas, without the board’s
amended as follows:
prior approval.2
S ection 3— C en tral O rg a n iza tio n .***

(i)
D ivision of Federal R eserve Bank O pera­
tions,*** provides an appraisal of Reserve Bank
communication and automation plans and propos­
als and recommendations to the Board in such
areas and maintains liaison with various interested
parties on payments mechanism matters.
(j) D ivision of Federal R eserve Bank Exam ina­
tions and Budgets*** and provides certain cen­
tralized financial accounting services. The Divi­
sion also coordinates the printing and distribution
of Federal Reserve notes and is jointly responsible
with the Bureau of the Mint for the production
and distribution of coin.***




1. Applicant became a bank holding company on December
31, 1970, as a result of the 1970 Amendments to the Act,
by virtue of its ownership of more than 25 percent of the
outstanding voting shares of Bank. Applicant also engages
through subsidiaries in underwriting credit-related insurance,
dealing in farm commodities, and leasing real property, pur­
suant to the provisions of section 4(c)(ii) of the Act.
2. Applicant indirectly acquired the additional shares, rep­
resenting approximately 13.3 percent of the outstanding voting
shares of Bank, in order to increase the capital of Bank. Prior
to this acquisition Applicant directly owned slightly less than
50 percent of Bank’s shares, and members of the Hyneman
family, who control Applicant, owned a slightly smaller per­
centage of Bank’s shares. The violation did not increase the
percentage of Bank owned directly and indirectly by the
Hyneman family, and Applicant filed this application to retain
the additional shares. The board, having reviewed the facts
surrounding the violation, concludes that the violation does
not reflect so adversely on the managerial resources of Appli­
cant as to warrant denial of the application.
3. All banking data are as of June 30, 1978.

346

Federal Reserve Bulletin □ April 1979

Bank, with deposits of approximately $7 mil­
lion, is the 225th largest commercial bank in the
state of Arkansas and controls approximately 0.1
percent of total deposits in commercial banks in
the state.3 Bank is the smallest of seven banks
competing in the relevant market, which is ap­
proximated by Poinsett County, and holds ap­
proximately 7.3 percent of total market deposits.
Inasmuch as the proposal involves the retention
of shares in a bank that Applicant controlled at
the time the shares were acquired, it appears that
the retention of such shares would involve neither
an expansion of Applicant nor an increase in the
banking resources controlled by it. In the board’s
view Applicant’s retention of this stock would not
eliminate existing or potential competition or in­
crease the concentration of banking resources in
any relevant area. Thus, competitive consid­
erations are regarded as consistent with approval
of the application.
The financial and managerial resources of Ap­
plicant and Bank are regarded as consistent with
approval and their future propsects appear favor­
able. Accordingly, banking factors are consistent
with approval. There is no indication that the
convenience and needs of the community to be
served are not being met, and such considerations
are regarded as consistent with approval of the
application. Therefore, it is the board’s judgment
that retention of the subject shares 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.
By order of the Board of Governors, effective
March 23, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, P artee, and T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the B oard.

Delaware Service Co., Inc.,
Manchester, Iowa
O rder A pproving
Retention of Certain Shares and
A cquisition of A ddition al Shares of Bank

Delaware Service Co., Inc., Manchester, Iowa,
3. All banking data are as of June 30, 1978.




a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the board’s approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to retain certain
voting shares of First State Bank, Manchester,
Iowa (“ Bank” ), and to acquire additional voting
shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit views and recom­
mendations, has been given in accordance with
section 3(b) of the Act (12 U.S.C. § 1842(b)).
The time for filing views and recommendations
has expired, and the board has considered the
application and all comments received in light of
the factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)).
Applicant, a one-bank holding company,1 owns
48.3 percent of the outstanding voting shares of
Bank. On September 8, 1977, Applicant acquired
an additional 0.3 percent of the outstanding voting
shares of Bank without the prior approval of the
Board.2 Applicant now seeks the board’s approval
to retain these shares and to acquire an additional
1.75 percent share interest in Bank.
Bank (approximately $20.2 million in deposits)
is the 221st largest commercial bank in Iowa,
holding approximately 0.1 percent of total com­
mercial bank deposits in the state.3 Bank is the
largest of seven banking organizations in the rele­
vant banking market,4 holding approximately 26.7
percent of total commercial bank deposits in the
market. Since Applicant has no other banking
subsidiaries and since the proposal involves only
the retention of shares and the acquisition of addi­
tional shares of Bank, which at all times pertinent
hereto was controlled by Applicant, approval of
the application will not result in any adverse ef­
fects on existing or potential competition, nor
increase the concentration of banking resources in
any relevant area. Thus, competitive consid­
erations are regarded as consistent with approval
of the application.
1. Applicant is engaged in nonbanking activities that are
subject to 10-year grandfather privileges. Applicant intends to
apply to retain its credit life, accident and health insurance,
and fiduciary activities. Its remaining nonbanking activities will
be terminated prior to December 31, 1980.
2. Upon examination of all the facts of record, the board
is of the view that the facts surrounding the violation of the
Act do not reflect so adversely on the managerial factors as
to warrant denial of this application.
3. All banking data are as of June 30, 1978.
4. The relevant banking market is approximated by Dela­
ware County, Delaware.

Law Department

The financial and managerial resources and fu­
ture prospects of Applicant and Bank are satis­
factory. Thus, banking factors are regarded as
consistent with approval of the application. Al­
though there will be no immediate increase in the
services offered by Bank, convenience and needs
considerations are regarded as consistent with ap­
proval. Therefore, it is the board’s judgment that
the retention of the shares acquired in violation
of the Act and the acquisition of the additional
shares of Bank 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. Ac­
quisition of the additional shares of Bank shall not
be made before the thirtieth calendar day following
the effective date of this Order, or 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 Chicago
pursuant to delegated authority.
By order of the Board of Governors, effective
March 5, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and Partee. A b sen t and not
voting: G overn or T eeters.

(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

Secretary of the B oard.

Jacksonville National Corporation,
Jacksonville, Florida
O rder A pproving
Formation of Bank H olding Com pany

Jacksonville National Corporation, Jackson­
ville, Florida, has applied for the board’s approval
under section 3(a)(1) of the Bank Holding Com­
pany Act (12 U.S.C. § 1842(a)(1)) of formation
of a bank holding company by acquiring 98.6
percent of the voting shares of the Jacksonville
National Bank, Jacksonville, Florida (“ Bank” ).1
Notice of the application, affording opportunity
for interested persons to submit comments, has
been given in accordance with section 3(b) of the
Act. The time for filing comments has expired,
and the board has considered the application and
all comments received in light of the factors set
forth in section 3(c) of the Act (12 U.S.C.
§ 1842(c)).
1. Applicant has not applied for the board’s approval to




347

Applicant, a nonoperating corporation with no
subsidiaries, was formed for the purpose of be­
coming a bank holding company through the ac­
quisition of Bank. Bank, with total deposits of
$103 million, is the 53rd largest bank in Florida,
holding 0.4 percent of total deposits in commercial
banks in the state.2 Upon acquisition of Bank,
Applicant would control the fourth largest bank
in the relevant banking market and 5.2 percent
of total deposits therein.3 The proposal represents
a restructuring of the ownership of Bank, and since
Applicant has no other banking subsidiaries and
Applicant’s principals, officers, and directors are
not associated with any other banking organi­
zations, consummation of the proposal would not
have any adverse effects on existing or potential
competition, nor would it increase the concentra­
tion of banking resources in any relevant area.
Accordingly, the board concludes that competitive
considerations are consistent with approval of the
Application.
The financial and managerial resources and fu­
ture prospects of Applicant and Bank are regarded
as generally satisfactory. Considerations relating
to banking factors are consistent with approval of
the application. Although Applicant does not pro­
pose any major changes in Bank’s services, con­
venience and needs considerations are also con­
sistent with approval of the application. Accord­
ingly, it is the board’s judgment that the proposed
acquisition is consistent with 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 before the thirtieth
calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order, unless such period is extended
for good cause by the board or by the Federal
Reserve Bank of Atlanta pursuant to delegated
authority.
By order of the Board of Governors, effective
March 2, 1979.

acquire indirect control of Bank’s subsidiary, Charter Mortgage
Company, since it appears that Applicant may acquire and hold
such shares indirectly through Bank on the authority of section
4(c)(5) of the Act and section 225.4(e) of Regulation Y.
2. All banking data are as of December 31, 1977.
3. The relevant banking market is approximated by Duval
County plus the City of Orange Park in Clay County.

348

Federal Reserve Bulletin □ April 1979

V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and P artee. A b sen t and not
voting: G overnor T eeters.

(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

S ecretary of the Board.

National City Corporation,
Cleveland, Ohio
O rder A pproving A cquisition of Bank

National City Corporation, Cleveland, Ohio, a
bank holding company within the meaning of the
Bank Holding Company Act, has applied for the
board’s approval under section 3(a)(3) of the Act
(12 U.S.C. § 1842(a)(3)) to acquire all of the
voting shares (less directors’ qualifying shares) of
the successor by merger to The Huron County
Banking Company, National Association, Nor­
walk, Ohio (“ Bank” ). The bank into which Bank
is to be merged has no significance except as a
means to facilitate the acquisition of the voting
shares of Bank. Accordingly, the proposed acqui­
sition of shares of the successor organization is
treated herein as the proposed acquisition of the
shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
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
cluding those of the Comptroller of the Currency,
in light of the factors set forth in section 3(c) of
the Act (12 U.S.C. § 1842(c)).
Applicant, the third largest banking organization
in Ohio, controls 7 banks with total deposits of
approximately $2.2 billion,1 representing approxi­
mately 5.9 percent of the total deposits in com­
mercial banks in the state. Upon consummation
of the proposed transaction, Applicant’s share of
statewide deposits would increase by 0.2 percent,
and consummation of the proposal would not have
an appreciable effect on the concentration of
banking resources in Ohio.
Bank is the largest of seven banking organi­
zations in the relevant banking market,2 and con­
1. All banking data are as of June 30, 1978, unless other­
wise indicated.
2. The relevant banking market is approximated by Huron
County, Ohio, including the City of Bellevue and the Village
of Plymouth. All data for the relevant banking market are as
of June 30, 1977.




trols 28.1 percent of total market deposits. None
of Applicant’s subsidiary banks compete in the
relevant banking market and Applicant’s nearest
banking office is located in an adjacent banking
market approximately 12 miles from any office
of Bank. From the record, it appears that no
significant competition presently exists between
Applicant’s banking subsidiaries and Bank, and
that it is unlikely that competition would develop
in the future. The board notes that consumation
of the proposal will eliminate some potential com­
petition between Applicant and Bank, inasmuch
as Applicant could enter the relevant market de
novo either by branching 3 or by establishing a new
bank. Such entry does not appear likely since the
market is not regarded as attractive for de novo
entry, in view of the relatively low ratios of
population and income per banking office in Huron
County. Furthermore, while Bank could branch
into the seven counties contiguous to Huron
County, including three counties where subsidiary
banks of Applicant currently operate, it does not
appear that Bank currently possesses sufficient
additional resources for expansion outside of
Huron County. In view of the facts of record, the
board does not regard the adverse effects on po­
tential competition that would result from the
proposed acquisition of Bank by Applicant as
significant, particularly in light of the fact that a
number of potential entrants into the relevant
banking market remain after consummation of this
proposal. Moreover, consummation of the pro­
posed acquisition of Bank by Applicant would not
have any adverse effects on existing competition
nor would it increase the concentration of banking
resources in any relevant market.
The financial and managerial resources and fu­
ture prospects of Applicant, its subsidiaries and
Bank are considered satisfactory. Thus, consid­
erations relating to banking factors are consistent
with approval of the application. Upon acquisition
of Bank, Applicant will assist Bank in providing
new and improved services to its customers. In
particular, Applicant will cause Bank to increase
its marketing of credit services and to expand its
consumer lending activities. In addition, Applicant
will encourage Bank to increase its involvement
in community development programs and its busi3.
Under a recently enacted Ohio law, effective January 1,
1979, an Ohio bank may branch de novo into counties contig­
uous with the county in which the bank’s home office is located.
Three subsidiary banks of Applicant have home offices located
in counties contiguous with Huron County.

Law Department

ness contacts with real estate brokers and home
improvement contractors. Finally, affiliation with
Applicant also will provide Bank’s customers with
more convenient access to specialized services
offered by subsidiaries of Applicant, including
international banking, leasing, automobile floor
plan financing, industrial revenue bond financing
and trust services. Therefore, considerations relat­
ing to the convenience and needs of the community
to be served lend some weight toward approval
of the application, and in the board’s view, are
sufficient to outweigh any anticompetitive effects
that would result from consummation of the pro­
posal. Based on the foregoing and other consid­
erations reflected in the record, it is the board’s
judgment that the proposed acquisition is in the
public interest and that the application should be
approved.
On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be consummated before the
thirtieth calendar day following the effective date
of this Order or later than three months after the
effective date of this Order, unless such period
is extended for good cause by the board or by
the Federal Reserve Bank of Cleveland pursuant
to delegated authority.
By order of the Board of Governors, effective
March 23, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, P artee, and T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

Garw ood,

D eputy Secretary of the Board.

SafraCorp,
Miami, Florida
O rder A pprovin g
Formation of Bank H olding Com pany

SafraCorp, Miami, Florida (“ Applicant” ), has
applied for the board’s approval under section
3(a)(1) of the Bank Holding Company Act (12
U.S.C. § 1842(a)(1)) to become a bank holding
company through the acquisition of 100 percent
of the voting shares of SafraBank, Dade County,
Florida (“ Bank” ). Notice of the application, af­
fording opportunity for interested persons to sub­
mit comments and views, has been given in ac­
cordance with section 3(b) of the Act. The time
for filing comments and views has expired and the




349

application and all comments received have been
considered in light of the factors set forth in section
3(c) of the Act (12 U.S.C. § 1842(c)).1
Applicant, a nonoperating corporation with no
subsidiaries, was recently organized for the pur­
pose of becoming a bank holding company through
acquisition of Bank. Bank ($12.1 million in de­
posits) is the 509th largest banking organization
in Florida controlling 0.04 percent of the total
deposits held by commercial banks in the state.2
In the Miami banking market (the relevant mar­
ket), Bank is the 42nd largest banking organization
with approximately 0.2 percent of market depos­
its.3
Principals of Applicant are also associated with
Republic National Bank of New York, a subsidiary
of Republic New York Corporation, a registered
bank holding company. Inasmuch as Republic
National Bank of New York is not located in the
same market as Bank, and since this proposal
essentially represents a restructuring of the existing
ownership of Bank, consummation of the proposal
would not have an adverse effect on existing or
potential competition. Accordingly, it is concluded
that competitive considerations are consistent with
approval of the application.
The financial and managerial resources and fu­
ture prospects of Applicant are satisfactory. The
sole shareholder of Bank proposes to exchange all
of the outstanding shares of Bank for shares of
Applicant, effecting a reorganization with no
change in control and no associated debt. The
managerial resources of Applicant and Bank are
considered satisfactory and the future prospects of
each appear favorable. Accordingly, consid­
erations related to banking factors are consistent
with approval of the application. Although con­
summation of the proposal would effect no imme­
diate changes in the banking services offered by
Bank, considerations relating to the convenience
and needs of the community to be served also are
consistent with approval.
On the basis of the record, the application is
approved for the reasons summarized above. The
1. Safra International Trading, Inc., Dade County, Florida
(“ Protestant” ), has objected to this application alleging that
unfair competition would result from the infringement of the
name “ Safra” and the goodwill entailed therein. The board
has determined that resolution of such allegation rests with
the courts and is not properly within the jurisdiction of the
board under §3(c) of the Act.
2. Banking data are as of December 31, 1977.
3. The Miami banking market is approximated by Dade
County and that portion of Broward County lying south of
the Dania Canal.

350

Federal Reserve Bulletin □ April 1979

transaction shall not be consummated (a) before
the thirtieth 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 of Gov­
ernors or by the Federal Reserve Bank of Atlanta
pursuant to delegated authority.
By order of the Board of Governors, effective
March 9, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and Partee. A b sen t and not
voting: G overnor T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

Standard Chartered Bank Limited,
London, England
Standard Chartered Overseas Holdings Limited,
London, England
Standard Chartered Bancorp,
San Francisco, California
Chartered Bank of London,
San Francisco, California
O rder A pprovin g A cquisition of Bank ,
Formation of Bank H olding Com panies ,
M erger of Banks , and A cquisition
of Edge A c t Subsidiary

Standard Chartered Bank Limited (“ SCB” ),
London, England, a bank holding company within
the meaning of the Bank Holding Company Act
by virtue of its control of The Chartered Bank of
London (“ CBOL” ), San Francisco, California,
has applied under section 3(a)(3) of the Bank
Holding Company Act (the “ Act” ) (12 U.S.C.
§ 1842(a)(3)) to acquire indirectly all the voting
shares (less directors’ qualifying shares) of Union
Bank (“ Bank” ), Los Angeles, California. In ad­
dition, SCB’s subsidiaries, Standard Chartered
Overseas Holdings Limited (“ Holdings” ), Lon­
don, England, and Standard Chartered Bancorp
(“ Bancorp” ), San Francisco, California, have ap­
plied under section 3(a)(1) of the Act (12 U.S.C.
§ 1842(a)(1)) to become bank holding companies
by acquiring directly and indirectly, as part of the
same transaction, all the voting shares (less direc­
tors’ qualifying shares) of Bank and CBOL.
Applicants have also requested that the board




approve, under section 25(a) of the Federal Re­
serve Act (the “ Edge Act” ) (12 U.S.C. § 619),
retention by Bank of voting shares of Union Inter­
national Bank (“ Edge” ), Los Angeles, California,
a subsidiary organized under that section, after
Applicants acquire Bank. Finally, application has
been made by CBOL for the board’s approval,
pursuant to the Bank Merger Act (12 U.S.C.
§ 1828(c)), to consolidate with Bank, a state
member bank of the Federal Reserve System,
under the charter of Bank. Incident to the proposed
merger the existing offices of CBOL would be­
come branch offices of the resulting bank.
Notice of the applications, affording opportunity
for interested persons to submit comments and
views, has been given in accordance with section
3(b) of the Act, and the time for filing comments
and views has expired. The board has considered
the applications and all comments received, in­
cluding those submitted after the close of the
comment period by the U.S. Labor Party, in light
of the factors set forth in section 3(c) of the Act
(12 U.S.C. § 1842(c)) and the purposes of the
Edge Act. Notice of the proposed merger was duly
published, and reports on the competitive factors
were requested and received from the United
States Attorney General, the Comptroller of the
Currency and the Federal Deposit Insurance Cor­
poration. The board has considered the merger
application and all comments received in light of
the factors set forth in the Bank Merger Act.
SCB is the fifth largest British banking organi­
zation and the 70th largest in the world, with total
assets equivalent to approximately $18 billion as
of September 30, 1978. Approximately 71 percent
of its assets are held outside of the United King­
dom, and it conducts operations in 52 countries.
SCB and its subsidiaries are active in all aspects
of international banking including the financing of
trade and foreign exchange dealing worldwide.
SBC also engages in consumer finance, merchant
banking, equipment leasing, bullion and security
dealing, trust, and insurance activities through
subsidiaries and branches in the United Kingdom,
Africa, South East Asia and Australia. Holdings
and Bancorp are nonoperating corporations organ­
ized solely to facilitate the proposed transaction,
and their acquisition of CBOL represents a re­
structuring of the existing ownership of CBOL
within the SCB organization.
CBOL holds total domestic deposits of $399
million, representing 0.38 percent of commercial
bank deposits in California, and is the 21st largest

Law Department

banking organization in the state.1 Bank is a sub­
sidiary of Union Bancorp, Los Angeles, Califor­
nia, which would be merged with Bancorp and
dissolved prior to Bancorp’s acquisition of CBOL.
Bank holds deposits of approximately $4 billion,
representing 3.8 percent of the total deposits in
commercial banks in the state, and is the sixth
largest banking organization in California. Upon
consummation of these transactions, Applicants
would become the sixth largest banking organi­
zation in the state with total deposits of $4.3
billion.
The financial and managerial resources of Ap­
plicants, Bank, and CBOL are regarded as gener­
ally satisfactory and the future prospects of each
appear favorable. The proposed transaction would
provide Bank strong financial support, including
$25 million in new capital. Moreover, the board
expects Applicants will serve as a continuing
source of strength to Bank and Applicants recog­
nize their responsibility to do so. Although Appli­
cants will incur some debt in connection with this
proposal, it appears that Applicants will be able
to service the debt without adversely affecting the
financial position of the resulting bank. In the
board’s judgment, Applicants will serve as a
source of strength to Bank and CBOL and banking
factors are consistent with approval.
While the acquisition of CBOL by Holding^ and
Bancorp would have no effect on competition in
any relevant market, the proposed acquisition of
Bank would eliminate some existing competition
in the Los Angeles, San Diego and San Francisco
banking markets.2 In the Los Angeles metropolitan
area, Bank controls approximately 7.7 percent of
the market and is the fourth largest banking orga­
nization.3 CBOL controls approximately 0.05 per­
cent of the market and is the 69th largest institu­
tion. There are 105 competitors in the Los Angeles
market and the four largest competitors control
approximately 71 percent of market deposits. The
combined institution would control approximately
7.7 percent of market deposits and would remain
the fourth largest organization. In the San Fran­
cisco market, Bank ranks as the sixth largest

1. Unless otherwise noted all banking data are as of June
30, 1978.
2. The seven markets affected by this proposal are the
metropolitan areas, as defined by Rand McNally & Company,
in the 1978 C o m m ercia l A tla s & M a rk etin g G uide, of Los
Angeles, San Francisco, San D iego, Santa Barbara, VenturaOxnard, Oceanside-Vista and Sacramento.
3. Market data are as of June 30, 1977.




351

banking organization with control of approxi­
mately 1.4 percent of market deposits. CBOL is
the seventeenth largest banking organization in
that market with approximately 0.6 percent of
market deposits. There are 58 competitors in the
San Francisco banking market and the top four
control approximately 79 percent of market de­
posits. The combined institution would control
approximately 2 percent of market deposits and
would remain the sixth largest banking organi­
zation. In the San Diego metropolitan banking
market, Bank is the seventh largest banking orga­
nization with approximately 4.1 percent of market
deposits. CBOL is the eighteenth largest organi­
zation with approximately 0.5 percent of market
deposits. There are 29 competitors in the San
Diego market and the four largest competitors
control approximately 73 percent of market de­
posits. The combined organization would control
approximately 4.6 percent of market deposits and
would be the sixth largest banking organization
in the market. In view of the fact that Bank is
a relatively small competitor compared to the top
firms in these markets, and considering the large
number of competing instutitions in these markets,
the increased market shares of the proposed com­
bined institution are not viewed as significant and
the effect of the proposed transaction on existing
competition is viewed as only slightly adverse.4
With regard to probable future competition,
CBOL is represented in three markets, Santa Bar­
bara, Ventura-Oxnard, and Oceanside-Vista,
where Bank could establish branches. However,
Bank is not viewed as a likely entrant in these
three markets. Bank is represented in an additional
market, Sacramento, where CBOL could establish
branches. However, the effect of the proposed
transaction on potential competition in these four
markets is not viewed as significant because of
the existence of a large number of potential en­
trants in each of the markets and the high level
of existing competition in these markets. Accord­
ingly, based on the facts of record, the board finds
4.
The United States Attorney General expressed the view
that consummation of the proposed transaction would not have
a substantial competitive impact. The Comptroller of the Cur­
rency expressed the view that although the merger would
eliminate some existing competition the effect on competition
would not be substantially adverse. The Federal Deposit Insur­
ance Corporation expressed the view that consummation of
the proposed transaction would not have a significant effect
on competition. In arriving at this conclusion, the board also
considered the proportion of banking resources controlled by
foreign-owned institutions in the market relevant to this pro­
posal.

352

Federal Reserve Bulletin □ April 1979

that the effect of the proposed transactions on
competition would be slightly adverse.
Convenience and needs considerations relating
to this proposal are favorable. The additional cap­
ital to be injected into Bank is expected to
strengthen the organization and allow it to provide
new services to the public. As a subsidiary of
SCB, CBOL has demonstrated both its ability and
inclination to compete effectively in the provision
of retail banking services, and the affiliation of
Bank with SCB is expected to result in an impor­
tant broadening of Bank’s retail base, including
major expansion of its consumer mortgage lending
and adoption of an active branching policy, which
will benefit the communities Bank serves. Con­
summation of the proposal can also be expected
to produce managerial and operational efficiencies
in both the domestic and international area that
will contribute to producing a more aggressive
firm in retail and wholesale banking in the future.
Further, affiliation with a banking organization
widely represented overseas will allow Bank to
provide better service to customers with interna­
tional banking needs. The board finds that the
considerations relating to the convenience and
needs of the communities to be served lend weight
toward approval and outweigh the slightly adverse
competitive effects of this proposal. It is the
board’s judgment that, with respect to the applica­
tions filed under section 3 of the Bank Holding
Company Act and under the Bank Merger Act,
that consummation of the proposal would be in
the public interest and those applications should
be approved.
In reaching this decision, the board has given
due consideration to the comments received after
the close of the comment period from the U.S.
Labor Party, New York, New York. It is the
Party’s position, elaborated in a 30-page memo­
randum, a 400-page book, and various other doc­
uments filed with the Federal Reserve System, that
SCB is among various companies that have been
designated as part of an agreement between Mao
Tse-Tung and the Royal Institute of International
Affairs to act as agent for the British monarchy
in the management and financing of the world
opium trade. According to the Party, Britain’s
leading commercial and merchant banks and many
of the world’s important commercial firms are
associated in a world drug cartel, under the direc­
tion of the British monarchy, that touches or
comprehends, among other things, the American
crime syndicate, Zionist financing of international




terrorism, and the covert foreign intelligence
operations of the People’s Republic of China. The
Party has asked the board to conduct hearings on
these charges.
Substantially the same allegations and argu­
ments were made by the Party in its protest of
the applications by The Hong Kong and Shanghai
Banking Corporation, Hong Kong, and affiliated
companies to acquire Marine Midland Banks, Inc.,
Buffalo, New York. For the reasons stated in the
board’s Order on those case, the board has denied
the U.S. Labor Party’s request for a hearing and
is unable to accord the charges made by the U.S.
Labor Party sufficient weight or dignity to consti­
tute a determinative adverse consideration relative
to these applications.
With respect to Bank’s Edge Act Corporation,
the public interest in the uninterrupted continuation
of its service to customers favors approval of its
retention by Bank after Bank’s affiliation with
Applicants. The financial and managerial resources
of SCB are consistent with approval of the affilia­
tion between Edge and SCB, an organization re­
presented broadly in foreign markets, and a
strengthening of Bank resulting from this proposal
is expected to improve the international services
Edge would be able to provide to its customers,
consistent with the purposes of the Edge Act to
afford to all times a means of financing interna­
tional trade, to stimulate competititon for interna­
tional banking and financing services, and to faci­
litate and stimulate United States exports. Ac­
cordingly, the board has approved the application
filed under the Edge Act for the retention of Edge.5
On the basis of the record, the applications
under the Bank Holding Company and Edge Act
are approved for the reasons summarized above,
and the application to merge and, incident to that
merger, to establish branches is also approved.6
The transactions shall not be made before the
thirtieth calendar day following the effective date
of this Order or 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

5. In a related action, the Director of the board’s Division
of Banking Supervision and Regulation, pursuant to delegated
authority, has approved amendments to the articles of incorpo­
ration of Edge to permit foreign persons approved by the board
to acquire direct or indirect controlling interests in it.
6. As a part of these applications, SCB has agreed to provide
on a continuing basis certain financial information and to provide
such other information as the board from time to time deems nec­
essary for the proper discharge of its supervisory duties.

Law Department

Federal Reserve Bank of San Francisco pursuant
to delegated authority.
By order of the Board of Governors, effective
March 16, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, P artee, and T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

Trust Company of Georgia,
Atlanta, Georgia,
O rder A pprovin g A cquisition of Bank

Trust Company of Georgia, Atlanta, Georgia,
a bank holding company within the meaning of
the Bank Holding Company Act, has applied for
the board’s approval under section 3(a)(3) of the
Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per­
cent of the voting shares (less directors’ qualifying
shares) of the successor by merger to Gwinnett
Commercial Bank, Lawrenceville, Georgia
(“ Bank” ). The bank into which Bank is to be
merged has no significance except as a means to
facilitate the acquisition of the voting shares of
Bank. Accordingly, the proposed acquisition of
shares of the successor is treated in this Order as
a proposed acquisition of the shares of Bank.
Notice of the application, affording opportunity
for interested persons to submit views and recom­
mendations, has been given in accordance with
section 3(b) of the Act. The time for filing views
and recommendations has expired, and the appli­
cation and all comments have been considered in
light of the factors set forth in section 3(c) of the
Act (12 U.S.C. § 1842(c)).
Applicant, the second largest banking organi­
zation in Georgia, controls eleven banks with
aggregate deposits of approximately $1.6 billion,
representing 11.3 percent of the total deposits in
commercial banks in Georgia.1 Acquisition of
Bank, with deposits of $17.8 million, would in­
crease Applicant’s share of commercial bank de­
posits by less than 0.1 percent, and would not alter
Applicant’s ranking in the state.
Bank is the twenty-second largest banking or­
ganization in the Atlanta banking market,2 holding
0.3 percent of the total commercial bank deposits
in that market. Applicant is the third largest bank­
1. All banking data are as of September 30, 1978.




353

ing organization in the Atlanta market, with 16
percent of market deposits. While three of Appli­
cant’s subsidiary banks operate 46 branches in the
market, none of these branches is located in the
county of Bank, and state law precludes inter­
county branching and de novo entry by bank
holding companies. While consummation of this
proposal would eliminate some existing competi­
tion between Bank and Applicant, in view of the
nature of the market and Bank’s small size, the
board does not regard the effects of the proposal
on competition as being significant. Although Ap­
plicant’s mortgage subsidiary originates mortgage
loans in the Atlanta market, Bank’s operations in
that activity are very small and the amount of
nonbank competition that would be eliminated by
consummation of this proposal is minimal.
The financial and managerial resources of Ap­
plicant and its subsidiary banks are regarded as
generally satisfactory and the future prospects of
each appear favorable. Applicant has committed
to provide needed support to Bank, including
capital, which will ensure a strengthening of
Bank’s financial resources. The managerial re­
sources and future prospects of Bank will similarly
be strengthened to an important degree as a result
of the transaction. Banking factors, therefore, lend
weight toward approval.
Applicant plans to introduce a number of new
services to customers of Bank, including trust,
international banking, factoring, leasing, invest­
ment advisory and data processing. A plan for
preauthorized transfer from savings to checking
accounts will be initiated. Applicant also proposes
to open additional branches of Bank in Gwinnett
County and would make any necessary capital
injections to support the proposed branches. In
addition, affiliation with Applicant will give Bank
access to management expertise and experienced
lending officers who will assist bank in investment
portfolio management, legal matters, loan review,
control and planning. Considerations relating to
the convenience and needs of the community to
be served lend weight toward approval, sufficient
to outweigh any adverse competitive effects that
might be associated with the proposal. Accord­
ingly, it is the board’s judgment that the proposed
acquisition would be in the public interest and that
the application should be approved.
2.
The Atlanta banking market includes the two central
counties of the Atlanta SM SA, Fulton and DeKalb, and six
other countries surrounding these: Cobb, Douglas, Gwinnett,
Henry, Clayton, and Rockdale.

354

Federal Reserve Bulletin □ April 1979

On the basis of the record, the application is
approved for the reasons summarized above. The
transaction shall not be made before the thirtieth
calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order unless such period is extended
for good cause by the board or by the Federal
Reserve Bank of Atlanta pursuant to delegated
authority.
By order of the Board of Governors, effective
March 12, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and P artee. A b sen t and not
voting: G overnor T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

O r d e rs U n d e r S e c t io n s 3 A n d 4
O f B a n k H o l d in g C o m p a n y A c t

The Hongkong and Shanghai
Banking Corporation, Hong Kong
Kellett, N.V.,
Curacao, Netherlands Antilles
HSBC Holdings B.V.,
Amsterdam, The Netherlands
O rder A pproving Formation of Bank Holding
Com panies and A cquisition of N onbank and
Edge A c t Subsidiaries

The Hongkong and Shanghai Banking Corpora­
tion (“ HSBC” ), Hong Kong, and its subsidiaries,
Kellett N.V., Curaco, Netherlands Antilles, and
HSBC Holdings B.V., Amsterdam, The Nether­
lands, have applied under section 3(a)(1) of the
Bank Holding Company Act (“ the Act” ) (12
U.S.C. § 1842(a)(1)) for approval of the forma­
tion of bank holding companies by acquiring,
directly and indirectly, 51 percent of the voting
shares of M arine M idland B anks, Inc.
(“ Marine” ), Buffalo, New York. HSBC has been
a bank holding company by virtue of its control
of The Hongkong Bank of California, San Fran­
cisco, California, but HSBC recently sold that
bank.
Applicants have also applied under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the board’s Regulation Y (12
CFR § 225.4(b)(2)) for permission to acquire in­
directly, as an incident to their acquisition of
Marine, shares of Marine Midland Realty Credit
Corporation, Marine Midland Leasing Corpora­




tion, and M.M. Leasing Services, Inc., Buffalo,
New York, and American Dimensions, Inc., and
The Meairs Company, Irvine, California. These
companies are existing nonbank subsidiaries of
Marine engaged in mortgage banking, real estate
lending, and leasing activities that have been de­
termined by the board to be closely related to
banking (12 CFR § 225.4(a)(1), (3), and (5)).
Finally, Applicants have requested that the board
.approve, under section 25(a) of the Federal Re­
serve Act (“ the Edge Act” ) (12 U.S.C. § 619),
the retention by Marine of voting shares of Marine
Midland International Corporation, New York,
New York, and Marine Midland Interamerican
Bank, Miami, Florida, Marine’s two indirect sub­
sidiaries organized under that section, after Appli­
cants acquire a controlling interest in Marine.
Notice of receipt of the applications filed under
the Act has been given in accordance with sections
3 and 4 of the Act (43 Federal R egister 44,566
(1978) and the time for filing views and comments
has expired. The board has considered the appli­
cations and all comments received in light of the
factors set forth in section 3(c) of the Act (12
U.S.C. § 1842(c)), the considerations specified in
section 4(c) (8) of the Act, and the purposes of
the Edge Act.
HSBC is the largest bank incorporated in the
British Crown Colony of Hong Kong and the 67th
largest banking organization in the Free World,
with consolidated deposits equivalent to approxi­
mately $13 billion.1 It operates a retail and whole­
sale commercial, trust, and merchant banking
business through branches, representative offices,
subsidiaries, and affiliates in 40 countries in
Europe, the Far East, the Middle East, Australia,
and the Americas. In addition to these activities,
HSBC also performs a number of central banking
functions for the British Crown Colony of Hong
Kong, either de facto or as a matter of law. In
the United States, HSBC operates branches in New
York, Chicago, and Seattle, two agencies in Cali­
fornia, and a representative office in Houston, and
it has noncontrolling interests, permissible under
section 4(c)(9) of the Act and section 225.4(g) of
Regulation Y, in three foreign companies that
engage indirectly in nonbanking business in the
United States. As stated, HSBC has disposed of
its interest in The Hongkong Bank of California.
The remaining Applicants are nonoperating cor­

1.
1977.

Banking data for Applicants are as of December 31,

Law Department

porations organized solely to facilitate the pro­
posed transaction.
Marine does not engage directly in any activity
except holding shares of its subsidiaries. Its bank­
ing subsidiary, Marine Midland Bank (“ Bank” ),
Buffalo, New York, holds domestic deposits of
approximately $7 billion, or 4.5 percent of com­
mercial bank deposits in New York, and is the
seventh largest banking organization in that state
and the twelfth largest in the United States.2 Bank
serves 203 communities in New York through
approximately 300 banking offices.
Both HSBC and Bank compete in the metro­
politan New York banking market.3 HSBC
operates two branches in Manhattan, holding de­
posits of $204 million, a total equivalent of less
than 0.2 percent of the deposits held by domestic
commercial banks in the New York market. Bank
operates 64 offices in the market, and it ranks as
the ninth largest banking organization there, with
2.5 percent of the market’s commercial bank de­
posits. The board concludes that the impact of the
proposed transaction on market concentration
would not be significant. Consummation of the
proposal would eliminate some direct competition,
but there are numerous other competitors in the
market and, particularly with respect to HSBC’s
Chinatown branch, existing competition between
the institutions is limited, and the board concludes
that the effect of the transaction on competition
would be at most slightly adverse.4 The board does
not regard HSBC as a potential entrant in other
markets served by Bank, and HSBC does not
compete, through any continuing part of its orga­
nization, with Marine’s nonbank subsidiaries.
The financial and managerial resources and fu­
ture prospects of Applicants appear satisfactory.
The proposed transaction would provide Marine
$200 million in new capital and would markedly
strengthen the financial resources and future pros­
pects of the institution. Furthermore, the board
expects Applicants to continue to serve as a source
of strength to Marine in the future, and Applicants

2. Banking data for Marine and market data are as of June
30, 1978.
3. The metropolitan New York market consists of New York
City, Nassau, Westchester, Putnam, and Rockland Counties
and western Suffolk County, New York, the northern twothirds of Bergen County and eastern Hudson County, New
Jersey, and southwestern Fairfield County, Connecticut.
4. In arriving at this conclusion the board also considered
the proportion of banking resources controlled by foreignowned institutions in the markets relevant to this proposal.




355

recognize their responsibility to do so. It is recog­
nized that Marine needs financial support, includ­
ing capital, and the added support that would be
provided under this proposal would permit Bank
to grow in a more orderly way and to become
a more aggressive competitor, thereby benefiting
the communities it serves. Because of the nature
and extent of Bank’s operations in New York, the
effect of this increased financial and competitive
strength would be felt state-wide, but it would also
have a significant effect in national and interna­
tional markets. Access to HSBC’s branches in
those parts of the world where Bank is not repre­
sented would allow Bank to provide better service
to its customers with international banking needs.
Finally, HSBC’s record of meeting the conven­
ience and needs of the communities it serves is
consistent with approval of its application to ac­
quire Marine. The board concludes that banking
factors and considerations relating to the conven­
ience and needs of the communities to be served
favor approval of the applications to become bank
holding companies, and the latter considerations
are sufficient to outweigh any slightly adverse
competitive effects associated with the proposal.
It is the board’s judgment that, with respect to
the applications filed under section 3 of the Act,
consummation of the proposal would be in the
public interest and those applications should be
approved.
In reaching these conclusions, the board has
given due consideration to the public comments
received on these applications, and has given par­
ticular attention to the submission made by the
U.S. Labor Party, New York, New York. It is
the Party’s position, elaborated in a 118-page
report and other documents filed with the Federal
Reserve System, that HSBC is among various
companies that have been designated, as part of
an agreement between Mao Tse-tung and the
Royal Institute of International Affairs, to act as
agent for the British monarchy in the management
and financing of the worldwide opium trade. Ac­
cording to the Party, Britain’s leading commercial
and merchant banks and many important commer­
cial firms are associated in a world drug cartel,
under the direction of the British monarchy, that
touches or comprehends, among other things, the
American crime syndicate, Zionist financing of
international terrorism, and covert foreign intelli­
gence operations of the People’s Republic of
China. The U.S. Labor Party has asked the board
to conduct hearings on these charges.

356

Federal Reserve Bulletin □ April 1979

The Labor Party has not alleged that these
charges are relevant to the operation of Marine’s
domestic mortgage banking, real estate lending,
and leasing subsidiaries, and the board is not
required to hold hearings on applications under
section 3 of the Act unless the appropriate bank
supervisory authority, in this case the New York
Superintendent of Banks, recommends denial,
which she has not done. Moreover, the Labor
Party has not demonstrated that it would suffer
any injury in fact, economic or otherwise, that is
arguably within the zone of interest protected or
regulated by the Act, as would be necessary for
it to establish standing in this matter. The Labor
Party’s primary and its only definite intention at
any hearing is to “ present” materials that it has
already submitted in writing, and it has failed to
show that a hearing is necessary or would usefully
add to those written materials. Upon consideration
of this matter, the board has denied the hearing
request.
With respect to the charges made by the U.S.
Labor Party, the board is unable to accord them
sufficient weight or dignity to constitute a deter­
minative adverse consideration relative to these
applications. The Party’s report mixes historical
facts and unverifiable allegations, and its conten­
tion that HSBC is a current, witting participant
in illegal activities is premised wholly on doubtful
deductions drawn from ambiguous facts or claims
without the support of any allegation of specific,
examinable criminal acts by HSBC. The charges
have been denied by HSBC, the record contains
no independent corroboration of them, and the
board does not believe the record raises credible
factual issues regarding the integrity of Applicants’
management.
With respect to the applications to acquire
Marine’s nonbank subsidiaries, the board deter­
mined that the balance of public interest factors
prescribed by section 4(c)(8) of the Act favored
approval of Marine’s acquisition of American Di­
mensions, Inc., and The Meairs Company (38
Federal R egister 33,537 (1973)), and in 1971 and
1972 the Federal Reserve Bank of New York made
the same determination under delegated authority
with respect to Marine’s remaining three nonbank
subsidiaries that are the subject of these applica­
tions. Nothing in the record suggests that Appli­
cants’ acquisition of Marine would alter that bal­
ance.5 In addition, the board views the continued
5. Applicants’ proposal is conditioned upon HSBC’s dives-




presence of Marine’s nonbank subsidiaries as
competitors in the markets they serve as a public
benefit, and the strengthening of Marine that would
result from consummation of this proposal may
enable these subsidiaries to assume a more effec­
tive competitive role. There is no evidence in the
record that consummation of the proposal would,
with respect to these applications, result in undue
concentration of resources, decreased or unfair
competition, conflicts of interest, unsound banking
practices, or other adverse effects on the public
interest. Accordingly, the board has determined
that the balance of public interest factors it must
consider under section 4(c)(8) of the Act favors
approval of the applications filed under that sec­
tion, and that those applications should be ap­
proved.
Similarly, with respect to Marine’s two Edge
Act corporations, the public interest in the unin­
terrupted continuation of their service to customers
favors approval of their retention by Bank after
Marine is acquired by Applicants. The financial
and managerial resources of Applicants are con­
sistent with approval of the affiliation of these two
corporations with HSBC, an organization broadly
represented in foreign markets, and a strengthen­
ing of Marine resulting from this proposal is ex­
pected to improve the international services
Marine’s Edge Act corporations would be able to
provide to their customers, consistent with the
purposes of the Edge Act to afford at all times
a means of financing international trade, to stimu­
late competition for international banking and fi­
nancing services, and to facilitate and stimulate
United States exports. Accordingly, the board has
approved the application filed under the Edge Act
for the retention of Marine Midland International
Corporation and Marine Midland Interamerican
Bank.6
As noted, HSBC has sold its interest in The
Hongkong Bank of California.7 Under section 3(d)
of the Act, the board could not approve an appli­

titure of its California bank subsidiary, the only component
of Applicants’ organization that competes with Marine’s Cali­
fornia nonbank subsidiaries.
6. In a related action the Director of the board’s Division
of Banking Supervision and Regulation, pursuant to delegated
authority, has approved amendments to the articles of incorpo­
ration of these corporations to permit foreign persons approved
by the board to acquire direct or indirect controlling interests
in them.
7. The Hongkong Bank of California was sold in February
1979, and HSBC is in the process of submitting details of
that transaction to the board’s General Counsel.

Law Department

cation that would permit any of the Applicants,
while HSBC remained a bank holding company,
to acquire directly or indirectly any voting shares
of an additional bank located outside California,
so that without a divestiture of HSBC’s California
subsidiary these applications could not be ap­
proved. Termination of a company’s status as a
bank holding company is not always automatic
upon sale of its bank subsidiaries,8 and any doubt
about whether HSBC terminated its status as a
bank holding company before acquiring Marine
would raise a doubt of equal strength regarding
the validity of the board’s approval of these ap­
plications. For that reason, it is a condition of this
Order that HSBC’s proposed acquisition of Marine
shall not be consummated before the board or its
General Counsel has determined that the divesti­
ture of The Hongkong Bank of California is com­
plete and effective and that HSBC has ceased to
be a bank holding company.
Subject to the foregoing condition, the applica­
tions are approved based on the record and for
the reasons summarized above. The proposed
transactions shall not be made before the thirtieth
calendar day following the effective date of this
Order, or later than three months after the effective
date of this Order unless such period is extended
for good cause by the board or by the Federal
Reserve Bank of New York pursuant to authority
hereby delegated.9 The determination as to Appli­
cant’s acquisition of Marine’s nonbank subsidi­
aries under section 4(c)(8) of the Act is subject
to the conditions set forth in section 225.4(c) of
Regulation Y, and to the board’s authority to
require reports by and make examinations of bank
holding companies and their subsidiaries,10 and to
require such modification or termination of the
activities of a bank 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 Orders and

8. See, 12 C.F.R. §§ 225.138(b)(6) and 225.139.
9. The board recognizes that a part of the proposed transac­
tions is not expected to be consummated before December 31,
1980, and the board anticipates that the Reserve Bank may
grant successive extensions of this period as necessary, each
not exceeding six months.
10. As a part of its applications, both under sections 3 and
4 of the Act, HSBC has specifically agreed to provide on a
continuing basis certain financial information and to provide
such other information as the board form time to time deems
necessary for the proper discharge of its supervisory respon­
sibilities.




357

regulations issued thereunder, or to prevent eva­
sion thereof.
By order of the Board of Governors, effective
March 16, 1979.
V o tin g for this action: C hairm an M iller and G o v er­
nors W a llich , C o ld w e ll, P artee, and T eeters.

(Signed)
[s e a l ]

G

r if f it h

L.

G arw ood,

D eputy Secretary of the B o a rd .

National Westminster Bank Limited,
London, England
NatWest Holdings, Inc.,
Wilmington, Delaware
O rder A pprovin g Formation of
Bank Holding Com panies and
Retention o f N onbanking Shares

National Westminster Bank Limited, London,
England (“ NatWest” ), and its subsidiary, NatWest Holdings, Inc., Wilmington, Delaware
(“ Holdings” ), have applied for the board’s ap­
proval under section 3(a)(1) of the Bank Holding
Company Act (“ Act” ) (12 U.S.C. § 1842 (a)(1))
of formation of bank holding companies through
acquisition of 75.1 percent of the voting shares
of National Bank of North America, Jamaica, New
York (“ NBNA” ), from C.I.T. Financial Cor­
poration, New York, New York.1 In this connec­
tion, NatWest and Holdings have applied pursuant
to section 25(a) of the Federal Reserve Act to
acquire all of the shares of North America Inter­
national Corporation, New York, New York, the
Edge Act subsidiary of NBNA. NatWest has also
applied, pursuant to section 4(c)(8) of the Act,
to retain shares of its indirect subsidiary, C. F.
International Inc., New York, New York (“ CFI” ),
a company that is engaged in factoring of accounts
receivable in international trade. The board has
determined this activity to be permissible for bank
holding companies at section 225.4(a)(1) and (3)
of Regulation Y (12 C.F.R. § 225.4 (a)(1) and
(3)).
Notice of the applications, affording opportunity
for interested persons to submit views and recom­
mendations, has been given in accordance with
section 3(b) and section 4(c)(8) of the Act. The
1.
The board’s action with respect to these applications does
not address the issue of whether C.I.T. Financial Corporation,
a registered bank holding company with respect to NBNA,
will cease to be a bank holding company upon its sale of 75.1
percent of the voting shares of NBNA.

358

Federal Reserve Bulletin □ April 1979

time for filing views and recommendations has
expired, and the board has considered the applica­
tions and all comments received in light of the
factors set forth in section 3(c) and section 4(c)(8)
of the Act (12 U.S.C. § 1842(c) and 1843(c)(8)).2
NatWest, with total assets in United States dol­
lars of approximately $38.5 billion, is the second
largest bank in the United Kingdom and the thir­
teenth largest bank in the Free World.3 Holdings,
a wholly-owned subsidiary of NatWest, is a
nonoperating corporation with no activities or
subsidiaries that was formed solely for the purpose
of acquiring shares of NBNA. NatWest conducts
its banking operations in the United Kingdom
directly through more than 3,200 branches, as well
as through four subsidiary banks, three of which
are wholly-owned. In addition, NatWest conducts
banking operations outside the United Kingdom
through its wholly-owned subsidiary International
Westminster Bank Ltd., and its wholly-owned
commercial banking subsidiaries located in Hong
Kong and Canada, as well as through its holding
of direct and indirect interests in banking organi­
zations located in Switzerland, the Netherlands,
and the Bahamas. In the United States, NatWest
operates a branch office in New York, New York,
and Chicago, Illinois, and has an agency office
in San Francisco, California; NatWest also has a
representative office in Los Angeles, California,
and Houston, Texas. NatWest’s two principal
nonbanking subsidiaries provide installment and
lease financing and conduct a merchant banking
business outside the United States. With respect
to any direct or indirect ownership or control by
NatWest of various companies doing business in
the United States, including Tower Isles, Inc.,
Roy West Holdings Limited, and UK-American
Properties Inc., the board notes that, pursuant to
section 4(a)(2) of the Act, such ownership or
control cannot be retained beyond two years from
the date on which NatWest becomes a bank hold­
ing company unless an exemption under the Act

2. The board received comments on this application from
Mr. Jose Ametller and Mr. L. G. Norman objecting to foreign
ownership of N BNA and certain practices of NatWest that are
subject to regulation under British law, respectively. Inasmuch
as these matters do not appear to relate to the factors the board
is required to consider under the Act, and since no hearing
has been requested with respect to the comments, the board
does not believe that the comments warrant further consid­
eration.
3. All banking data are as of June 30, 1978. As of that
date, pound sterling was converted at the rate of $1.86 per
pound.




is applicable to such ownership or control or the
board grants an extension for such interests.
NBNA, with total deposits of approximately
$2.3 billion, is the thirteenth largest commercial
bank in the state of New York. Within the metro­
politan New York market, NBNA is the eleventh
largest of 108 banking organizations and controls
approximately 1.9 percent of the deposits in com­
mercial banks in the market.4 All but three of
NBNA’s 142 branches are located within the met­
ropolitan New York market. NatWest also
operates one branch office in the market, which
does not provide a range of banking services to
individuals, but rather offers commercial banking
services to large national and international organi­
zations. While NBNA also competes for commer­
cial banking business on a national basis, the
aggregate amount of NBNA and the NatWest
branch of such commercial banking business in
the country or in any other relevant area is not
significant. It is the board’s view that the proposal
of NatWest and Holdings to become bank holding
companies would not have any adverse effects on
existing competition, nor does it appear from the
record that the proposal would have any other
adverse affects on competition in any relevant area
in the United States.5 Accordingly, the board re­
gards competitive considerations as consistent with
approval of the applications to become bank hold­
ing companies.
The board expects that a bank holding company
will have the resources to serve as a source of
financial strength for its subsidiary banks. On the
basis of the record, the board has concluded that
the financial and managerial resources of NatWest
and its subsidiaries are regarded as satisfactory,
and their future prospects appear favorable. As a
result of consummation of the proposed acquisi­
tion, NBNA’s financial and managerial resources
and future prospects will be strengthened, particu­
larly in light of NatWest’s commitment to inject
at least $25 million of capital into NBNA within
six months after acquiring NBNA. Furthermore,
NatWest has stated its intention to ensure that

4. The metropolitan New York market, the relevant banking
market for the purposes of this application, consists of: New
York City, western Suffolk County, and Nassau, Putnam,
Rockland, and Westchester Counties in New York; the north­
eastern two-thirds of Bergen County and eastern Hudson
County in New Jersey; and southwestern Fairfield County in
Connecticut.
5. In arriving at this conclusion, the board also considered
the proportion of banking resources controlled by foreignowned institutions in the markets relevant to this proposal.

Law Department

NBNA remains among the more strongly capital­
ized of the United States banking institutions
which are comparable to NBNA in size and in
nature of business. Moreover, affiliation with NatWest will provide NBNA with access to the fi­
nancial and managerial resources of NatWest, and
in the board’s view, NatWest will serve as a
continuing source of financial strength for NBNA.
Accordingly, banking factors lend weight toward
approval of the applications of NatWest and
Holdings to become bank holding companies.
In this connection, in its February 23, 1979,
“ Statement of Policy on Supervision and Regula­
tion of Foreign Bank Holding Companies” , the
board stated:
[T]he Board believes that in general foreign
banks seeking to establish banks or other banking
operations in the United States should meet the
same general standards of strength, experience and
reputation as required for domestic organizers of
banks and bank holding companies. The Board
also believes that foreign banks should meet on
a continuing basis these standards of safety and
soundness if they are to be a source of strength
to their U.S. banking operations.
In applying this principle to NatWest’s application
to become a bank holding company, the board
sought to assure itself of NatWest’s ability to be
a source of financial and managerial strength and
support to NBNA. The board has analyzed the
financial condition of NatWest and its subsidiaries,
evaluated the record and integrity of management,
assessed the role and standing of NatWest in the
United Kingdom, and requested the views of the
bank regulatory authorities in the United King­
dom. In connection with its financial analysis, the
board has required that NatWest provide sufficient
information to permit its assessment of the finan­
cial strength and operating performance of Nat­
West. Furthermore, NatWest has committed that
it will provide sufficient information to enable the
board to monitor and assess its operations on a
continuing basis.
Upon consummation of the proposed acquisi­
tion, NatWest intends to assist NBNA in providing
new and improved banking services to its custom­
ers and particularly to NBNA’s consumer banking
customers. In this regard the board notes that
NatWest has particular expertise in the area of
retail banking, which will enable it to lend support
to NBNA’s operations. In particular, NatWest
proposes to increase NBNA’s branches in its ex­
isting markets, as well as to expand its branches




359

to new markets. NatWest will also introduce auto­
mated teller machines for use by NBNA’s retail
customers throughout its branching system. Fur­
thermore, upon affiliation NatWest will cause
NBNA to aggressively promote consumer lending,
and will cause NBNA to offer extended maturities
on automobile loans. In addition, NatWest has
indicated that it will provide $5 million to NBNA
for the expansion of its business opportunity loan
program, which makes loans guaranteed by the
Small Business Administration. Finally, affiliation
with NatWest will enable NBNA to provide its
customers with improved service in the areas of
foreign exchange transactions, overseas credit
analysis, and local currency financing for custom­
ers with overseas operations. Based on the fore­
going, it appears that considerations relating to the
convenience and needs of the community to be
served lend weight toward approval of the appli­
cations to acquire NBNA. Accordingly, the board
concludes that the acquisition of 75.1 percent or
more of the voting shares of NBNA by NatWest
indirectly and Holdings directly would be in the
public interest and that the applications should be
approved.
With respect to NatWest’s application under
section 4(c)(8) of the Act to retain shares of CFI,
the board notes that CFI is the United States
subsidiary of Credit Factoring International Lim­
ited (“ CFIL” ), a direct wholly-owned subsidiary
of NatWest. CFIL has eight subsidiaries, which
were established de novo by NatWest in Great
Britain, Western Europe, and the United States,
and which engage in the purchase of accounts
receivable from exporters. CFI has one office lo­
cated in New York City and derives a substantial
portion of its business from the states of New
York, New Hampshire, and North Carolina. On
June 30, 1978, CFI had factored accounts receiv­
able of $5.1 million, 70 percent of which were
derived from clients located outside New York
state. Inasmuch as CFI’s factoring business con­
sists of export-import financing referred from other
CFIL affiliates, it does not appear that retention
of shares of CFI by NatWest would result in the
elimination of any existing or potential competi­
tion between CFI and NBNA. On the other hand,
NatWest’s retention of shares of CFI will ensure
the customers of CFI as well as its other CFIL
affiliates of a continued source of export-import
accounts receivable factoring. Furthermore, there
is no evidence in the record indicating that the
proposed retention would result in any conflicts
of interest, undue concentration of resources, un­

360

Federal Reserve Bulletin □ April 1979

sound banking practices or other effects adverse
to the public interest. Based on the foregoing and
other facts and considerations reflected in the rec­
ord, the board has determined in accordance with
the provisions of section 4(c)(8) of the Act that
the retention by NatWest of shares of CFI can
reasonably be expected to produce benefits to the
public that outweigh any possible adverse effects,
and that NatWest’s application to continue to en­
gage through CFI in export-import factoring
should be approved.
On the basis of the record, the applications are
approved for the reasons summarized above.6 The
acquisition of NBNA shall not be made before the
thirtieth calendar day following the effective date
of this Order, or later than three months after the
effective date of this Order unless such period is
extended for good cause by the board, or by the
Federal Reserve Bank of New York pursuant to
.delegated authority. The approval of the applica­
tion to retain shares of CFI is subject to the
conditions set forth in section 225.4(c) of Regula­
tion Y and to the board’s authority to require such
modification or termination of the activities of a
holding company or any of its subsidiaries as the
board finds necessary to assure compliance with
the provisions and purposes of the Act and the
board’s regulations and orders issued thereunder,
or to prevent evasion thereof.
By order of the Board of Governors, effective
March 16, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, P artee, and T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

O rders U nder S e c tio n 4
of B a n k H old in g C o m p a n y A ct

Manufacturers Hanover Corporation,
New York, New York
O rder A pproving A cquisition of
M anufacturers H anover Com m erical Corporation
(D el.)

Manufacturers Hanover Corporation, New
York, New York, a bank holding company within
6.
Inasmuch as the articles of association of North American
Investment Company (“ NAIC” ) presently prohibit its acquisi­
tion by a company organized under the laws of a foreign




the meaning of the Bank Holding Company Act,
has applied for the board’s approval, under
§ 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
§ 225.4(b)(2) of the board’s Commercial Cor­
poration (D el.), Los A ngeles, C alifornia
(“ MHCC-Del” ), a de novo company that will
engage in the activities of making or acquiring,
for its own account or the account of others, loans
and other extensions of credit such as would be
made by a factoring and commercial finance com­
pany, and arranging or servicing such loans and
extensions of credit for any person. Such activities
have been determined by the board to be closely
related to banking (12 CFR § 225.4(a)(1) and (3)).
Subsequent to the acquisition, Applicant would
transfer the California assets of its existing indirect
subsidiary, Manufacturers Hanover Commercial
Corporation, New York, New York (“ MHCCNY” ), to the proposed de novo subsidiary.
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (44 Federal R egister 114). The time for
filing comments and views has expired, and the
board has considered the application and all com­
ments 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 is the fourth largest banking organi­
zation in the United States and the third largest
in New York state. Applicant controls four do­
mestic bank subsidiaries with total deposits of
$30.5 billion.1 Applicant also engages, through
various subsidiaries, in a variety of nonbanking
activities including mortgage banking, consumer
finance, insurance and leasing. MHCC-NY, in­
corporated in the state of New York in December
1971, was formed by Manufacturers Hanover
Trust Company (“ Bank” ), as an operations sub­
sidiary for the purpose of acquiring, in March
1972, substantially all the assets of Iselin-Jefferson
Financial Company, Inc. (“ IJF” ), a factoring
company. MHCC-NY thus became an indirect
subsidiary of Applicant pursuant to section 4(c)(5)
of the Act. Subsequently, in early 1978, MHCCNY acquired a portion of the factoring business
country, NAIC must seek the board’s approval to amend its
articles of association before NatWest can acquire the shares
of NAIC. Accordingly, this approval with regard to the acqui­
sition by NatWest indirectly and Holdings directly of shares
of NBNA and thereby of shares of NAIC is subject to the
filing by NAIC of amended articles of association and the
board’s approval of such amended articles of association.
1. All banking data are as of June 30, 1978.

Law Department

of United California Bank. The proposed transac­
tion would transfer direct ownership of certain of
the assets, including the California factoring
assets, of MHCC-NY from Bank to Applicant.
The board believes that when a bank holding
company indirectly acquires a nonbanking com­
pany through a subsidiary bank, pursuant to
§ 4(c)(5), and subsequently applies to the board
to acquire direct ownership of such nonbanking
company and operate it pursuant to the broader
authority of § 4(c)(8), the board must consider the
transaction as if the nonbanking company was
being acquired initially from an independent third
party. Accordingly, in such circumstances the
board must find that neither the original acquisition
of the nonbanking company nor the board’s ap­
proval of the § 4(c)(8) application would result in
an undue concentration of resources, decreased or
unfair competition, conflicts of interest, or un­
sound banking practices.
At the time of the purchase of IJF Company
by MHCC-NY, IJF ranked as the 13th largest
factoring firm nationwide, with a factoring volume
of approximately $400 million in 1971.2 IJF’s
factoring business was limited in scope, with ap­
proximately 43 percent of its factoring volume
accounted for by its textile manufacturing parent.
At the time of the acquisition, Applicant neither
directly nor indirectly engaged in factoring and,
accordingly, no existing competition was elimi­
nated by the acquisition. Although Applicant or
Bank could have entered the factoring industry de
novo , the high fixed cost of operations and the
highly specialized nature of the industry made such
entry unlikely. On the basis of the facts of record,
the board finds that the 1972 acquisition of IselinJefferson did not have any significant adverse
effects upon either existing or potential competi­
tion in the factoring or commercial finance busi­
ness. Furthermore, the board finds that 1978 ac­
quisition of United California Bank’s factoring
assets did not have any significant adverse compe­
tition effects. The subject proposal is essentially
a corporate reorganization and it is unlikely to have
any effect on competition in any market. Accord­
ingly, the board finds that the competitive consid­
erations relating to the proposed transaction are
consistent with approval.
There is no evidence in the record to indicate
that the proposed acquisition of MHCC-Del would

2. D a ily N e w s R ec o rd , February 14, 1972.




361

lead to an undue concentration of resources, con­
flict of interest or unsound banking practices.
Consummation of the proposal is expected to pro­
duce some public benefits such as increased effi­
ciency by eliminating the need for approval of
California-originated transactions in New York.
The public would also benefit from the proposed
expansion of the West Coast factoring operations
by the existence of additional source of such
services.
Based upon the foregoing and other consid­
erations reflected in the record, the board has
determined that the balance of the public interest
factors the board is required to consider under
§ 4(c)(8) is favorable. Accordingly, the applica­
tion 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 of termination of the
activities of a holding company or any of its
subsidiaries as the board finds necessary to assure
compliance with the provisions and purposes of
the Act and the board’s regulations and orders
issued thereunder, or to prevent evasion thereof.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the board or by the Federal Reserve Bank of New
York.
By order of the Board of Governors, effective
March, 2, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W allich , C o ld w e ll, and Partee. A b sen t and not
voting: G overnor T eeters.

(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

S ecretary of the B oard.

Old Stone Corporation,
Providence, Rhode Island
O rder A pproving
A cquisition of D A C Corporation

Old Stone Corporation, Providence, Rhode Is­
land, a bank holding company within the meaning
of the Bank Holding Company Act, has applied
for the board’s approval, under section 4(c)(8) of
the Act (12 U.S.C. § 1843(c)(8)) and section
225.4(b)(2) of the board’s Regulation Y (12
C.F.R. § 225.4(b)(2)), to acquire, through its
newly formed subsidiary, Old Stone Financial
Corporation, Providence, Rhode Island (“ Finan­

362

Federal Reserve Bulletin □ April 1979

cial” ), all the shares of DAC Corporation, Jack­
sonville, Florida (“ DAC” ), and DAC’s wholly
owned affiliates: DAC Computer Services, Inc.,
American Standard Insurance Agency, Inc., and
The Motor Life Insurance Company, all of Jack­
sonville, Florida. Upon consummation of this
proposal Applicant would engage, through DAC,
in mortgage banking activities including the origi­
nation for resale of first and second mortgages and
the servicing of such loans; providing data pro­
cessing services for the operation of DAC and its
affiliates and financially related data processing for
the general public; acting as agent for the sale of
credit life insurance including level-term credit life
insurance on single payment loans, and credit
accident and health insurance;1 underwriting as a
reinsurer of credit life and credit accident and
health insurance; and engaging de novo through
DAC in consumer finance activities. Such activi­
ties have been determined by the board to be
c lo s e ly re la te d to b a n k in g (12 C .F .R .
§§ 225.4(a)(1), (3), (8)(i) and (ii), (9)(ii)(a), and
(10)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (43 Federal R egister 60335 (1979)).
The time for filing comments and views has ex­
pired, and the board has considered the application
and all comments received in the light of the public
interest factors set forth in section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)).
Applicant is the second largest banking organi­
zation in Rhode Island and controls Old Stone
Bank, Providence, Rhode Island ($988 million in
deposits).2 In addition, Applicant controls two
Morris Plan banks in Massachusetts, an industrial
loan company, and a 10-year grandfathered real
estate subsidiary.
DAC (consolidated assets of $12.9 million as
of May 31, 1978) is presently owned by UniCapital Corporation, Atlanta, Georgia, and operates
thirteen offices in Florida and one in Atlanta,
Georgia. DAC acts primarily as a mortgage banker
in the origination for resale of second mortgages
on residential property and the servicing of such

1. DAC presently sells, as agent, credit indemnity insur­
ance. This activity is not permissible for bank holding compa­
nies and Applicant has made a commitment that DAC would
cease to engage in this activity upon consummation of this
proposal.
2. All banking data are as of June 30, 1978, unless other­
wise indicated.




loans through eleven of its Florida offices. From
one office in Jacksonville, Florida, DAC also
originates residential first mortgages for resale and
services such loans. DAC provides financially re­
lated data processing services for itself, its affili­
ates and the general public through DAC Com­
puter Services, at DAC’s headquarters in Jackson­
ville. The sale of credit life insurance as agent
is conducted through American Standard Insurance
Agency (“ Agency” ) at all the Florida offices from
which DAC originates second mortgages.3 DAC
engages as reinsurer in the underwriting of credit
life and credit accident and health insurance
through Motor Life Insurance Company (“ Motor
Life” ) at DAC’s Jacksonville headquarters.4
From the record it does not appear that any
meaningful competition would be eliminated upon
consummation of this proposal, nor does it appear
likely that any significant competition would de­
velop in the future between DAC and any of
Applicant’s subsidiaries. DAC operates in Georgia
and Florida, and Applicant operates in Rhode
Island and Massachusetts. Although Applicant
presently holds an insignificant amount of mort­
gage loans in DAC’s Florida service area, there
are numerous competing financial institutions in
the relevant market and the proposed acquisition
would not result in a significant adverse effect on
competition with respect to this activity in any
relevant area. In addition, it does not appear that
Applicant’s acquisition of DAC’s insurance activ­
ities would have any significant effect on competi­
tion in view of the limited nature of the insurance
activities which Applicant proposes that DAC
would engage in following consummation of the
proposal. Moreover, Applicant’s proposal to en­
large DAC’s service areas and resume its former
lending and insurance activities in its Georgia
office could have procompetitive effects. Thus, the
board concludes that consummation of this pro­
posal would not have significant adverse effects
on either existing or future competition.

3. The credit accident and health insurance presently on the
books of Motor Life Insurance Company ( “ Motor Life” ) was
originally sold through American Standard Insurance Agency
(“ Agency” ) which has ceased such activities. Upon consum­
mation of this proposal, Agency would resume the sale of credit
accident and health insurance and Motor Life would underwrite
the additional credit accident and health insurance risks.
4. Applicant commits that after its acquisition of DAC,
Motor Life would not underwrite level-term insurance in con­
nection with installment loans; joint credit insurance unless
both insureds are cosigners and comakers; and credit insurance
ifi connection with loans secured by first mortgages.

Law Department

In light of all the facts of record, it appears
that consummation of this proposed transaction
would not result in any undue concentration of
resources, conflicts of interests, unsound banking
practices, or other adverse effects on the public
interest. The public can be expected to benefit from
the expansion of credit-related insurance activities
and the entry in to the finance company business
of an additional competitor. In addition, the added
managerial strength and improved efficiencies re­
sulting from the affiliation of DAC with Applicant
will allow DAC to increase its receivables and
expand its influence within its already established
markets.
Applicant has stated that following consumma­
tion of the acquisition, DAC will offer at reduced
premiums the credit insurance policies that it will
underwrite.5 The board is of the view that the
expansion of activities and proposed rate reduc­
tions are in the public interest. In its consideration
of this application, the board has taken into ac­
count Applicant’s commitment with respect to the
discontinuance, following consummation of the
proposed acquisition, of certain impermissible
nonbank activities in which DAC is presently
engaged.
Based upon the foregoing and other consid­
erations reflected in the record, including a com­
mitment by Applicant, with respect to its proposed
underwriting activities, to maintain on a continu­
ing basis the public benefits that the board has
found to be reasonably expected to result from this
proposal and upon which the approval of that
aspect of this proposal is based, the board has
determined that the balance of the public interest
factors the board is required to consider under
section 4(c)(8) is favorable. Accordingly, the ap­
plication is hereby approved. This determination
is subject to the conditions set forth in section
225.4(c) of Regulation Y and to the board’s au­
thority to require such modification or termination
5.
With respect to underwriting credit life and credit acci­
dent and health insurance, which is generally made available
by banks and other lenders and is designed to assure repayment
of a loan in the event of death or disability of the borrower,
the board has stated:
To assure that engaging in the underwriting
of credit life and credit accident and health
insurance can reasonably be expected to be in
the public interest, the Board will only approve
applications in which an applicant demonstrates
that approval will benefit the consumer or result
in other public benefits. Normally, such a
showing would be made by a projected reduc­
tion in rates or increase in policy benefits due
to bank holding company performance of this
service. (12 C.F.R. § 225.4(a)(10) n. 7).




363

of the activities of a holding company or any of
its subsidiaries as the board finds necessary to
assure compliance with the provisions and pur­
poses of the Act and the board’s regulations and
orders issued thereunder, or to prevent evasion
thereof. The transaction shall be made not later
than three months after the effective date of this
Order, unless such period is extended for good
cause by the board or by the Federal Reserve Bank
of Boston, pursuant to authority hereby delegated.
By order of the Board of Governors, effective
March 2, 1979.
V o tin g for this action: C hairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and Partee. A b sen t and not
voting: G overnor T eeters.

(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

Secretary of the Board.

United Oklahoma Bankshares, Inc.,
Oklahoma City, Oklahoma
O rder A pproving
A cquisition of United S ecu rities , Inc.

United Oklahoma Bankshares, Inc., Oklahoma
City, Oklahoma, a bank holding company within
the meaning of the Bank Holding Company Act,
has applied for the board’s approval, under section
4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and
section 225.4(b)(2) of the board’s Regulation Y
(12 C.F.R. § 225.4(b)(2)), to acquire United Se­
curities, In c ., Oklahom a C ity, O klahom a
(“ United Securities” ), a company that will engage
de novo in the activities of underwriting and deal­
ing in certain government and municipal securities
and in providing portfolio investment advice to
individuals, associations, corporations, and finan­
cial institutions (“ nonbank entities” ) and to com­
mercial banks. In two previous cases the board
determined that the activity of underwriting and
dealing in certain government and municipal se­
curities is closely related to banking and indicated
that proposals to engage in the activity would be
considered on a case-by-case basis.1 The activity
of providing portfolio investment advice has been
determined by the board to be closely related to
banking (sections 225.4(a)(5)(iii), (a)(5)(v), and

1.
U nited B a n co rp , 64 F e d e r a l R e s e r v e B u l l e t i n 222
(1978); S tepp, In c ., 64 F e d e r a l R e s e r v e B u l l e t i n 223
(1978). See also the board’s Order of January 26, 1978 (43
F ederal R eg iste r 5382 (1978)), discussing this activity.

364

Federal Reserve Bulletin □ April 1979

(a)(12) of Regulation Y; 12 C.F.R. §§ 225.4(a)
(5)(iii), (a)(5)(v), and (a)(12)).
Notice of the application, affording opportunity
for interested persons to submit comments and
views on the public interest factors, has been duly
published (44 Federal R egister 3776 (1979)). The
time for filing comments and views has expired,
and the board has considered the application and
all comments received in the light of the public
interest factors set forth in section 4(c)(8) of the
Act (12 U.S.C. § 1843(c)(8)).
Applicant is the seventeenth largest banking
organization in Oklahoma and controls one sub­
sidiary bank with aggregate deposits of approxi­
mately $84.3 million, representing 0.63 percent
of total deposits in commercial banks in the state.2
United Securities would engage in the activity of
underwriting and dealing in obligations of the
United States, general obligations of various states
and of political subdivisions thereof and other
obligations that state member banks of the Federal
Reserve System may be authorized to deal in under
federal law (12 U.S.C. §§ 24(7), 335). In its
Order of January 26, 1978 (43 Federal R egister
5382 (1978)), the board announced its decisions,
inter alia, not to adopt a proposed amendment
adding the activity to the list of activities permis­
sible for bank holding companies in the board’s
Regulation Y (12C.F.R. § 225), and to permit the
activity, if at all, by order. In its Order of January
26, 1978, the board also affirmed its conclusion,
first announced in its Order of October 19, 1976
(41 Federal R egister 47083 (1976)), that, as a
general matter, the activity of underwriting and
dealing in certain government and municipal se­
curities was closely related to banking.
Before permitting a bank holding company to
engage in a closely related activity, the board must
examine any public benefits that may reasonably
be expected to derive from performance of the
activity and weigh them against possible adverse
effects to determine whether the activity is a
“ proper incident to banking and managing or
controlling banks.” As it did in two previous
cases, the board in this case must determine
whether public benefits that may be reasonably
expected to derive from Applicant’s performance
of this activity through United Securities will out­
weigh any possible adverse effects.
United Securities intends to conduct its activities
in the state of Oklahoma. Approval of the proposal
2. All banking data are as of June 30, 1978.




would result in the addition of an aggressive and
knowledgeable competitor. Also, United Securi­
ties’ chief executive officer has substantial experi­
ence in the area of municipal securities underwrit­
ing and dealing, and it appears to the board from
the past record of this officer and Applicant’s
description of United Securities’ business that the
activity will be conducted conservatively and
would be within the scope of underwriting and
dealing in securities as contemplated by the board.
Further, conduct of the activity of underwriting
and dealing in certain securities would not ad­
versely affect the financial soundness of Applicant
or its subsidiaries. There is no evidence of record
that allowing Applicant to engage in the activity
of underwriting and dealing in certain securities
would result in any undue concentration of re­
sources, unfair competition, or other adverse ef­
fects upon the public interest.
Applicant also proposes through United Securi­
ties to engage in the activity of providing portfolio
investment advice to nonbank entities, to state and
local governments with respect to issuance of their
securities, and to unaffiliated commercial banks.
The board has previously considered this activity
and has added it to the list of permissible bank
holding company activities found in section
225.4(a) of the board’s Regulation Y (12 C.F.R.
§ 225.4(a)) with respect to nonbank entities (sec­
tion 225.4(a)(5)(iii)), state and local governments
(section 225.4(a)(5)(v)), and nonaffiliated banks
(section 225.4(a)(12)). Applicant indicates that
such advice would involve commenting on com­
position, fund flows, and adequacy of portfolios
but would not involve providing trading advice.
Applicant states that it is fully aware of the limita­
tions included in the board’s regulation regarding
tie-ins. Based upon Applicant’s description of the
services to be provided, it appears that United
Securities’ performance of this activity will be
within the scope of investment advisory activities
permissible for bank holding companies.
Inasmuch as United Securities is to be formed
de novo and would provide the services encom­
passed by the proposed activities de novo, the
subject proposal would eliminate neither existing
nor future competition within any relevant market.
Accordingly, the board finds that Applicant’s ac­
quisition of United Securities and its engaging in
the proposed activities would not have any adverse
effect upon competition. It further appears that
consummation of this proposal would not result
in any undue concentration of resources, conflicts

Law Department

of interests, unsound banking practices, or other
adverse effects on the public interest.
Based upon the foregoing and other consid­
erations reflected in the record, the board has
determined that the balance of the public interest
factors the board is required to consider under
section 4(c)(8) is favorable. Accordingly, the ap­
plication is hereby approved. This determination
is subject to the conditions set forth in section
225.4(c) of Regulation Y and to the board’s au­
thority to require such modification or termination
of the activities of a holding company or any of
its subsidiaries as the board finds necessary to
assure compliance with the provisions and pur­
poses of the Act and the board’s regulations and
orders issued thereunder, or to prevent evasion
thereof.
The transaction shall be made not later than
three months after the effective date of this Order,
unless such period is extended for good cause by
the board or by the Federal Reserve Bank of
Kansas City pursuant to delegated authority.
By order of the Board of Governors, effective
March 20, 1979.
V o tin g for this action: G overn ors W a llich , C o ld w e ll,
P artee, and T eeters. A b sen t and not voting: Chairm an
M iller.

(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

C e r t if ic a t io n s P u r s u a n t to th e
B a n k H o l d in g C o m p a n y T a x A c t

of

1976

Ector Shopping Center,
Odessa, Texas
Prior Certification Pursuant to the
Bank H olding Com pany Tax A c t of 1976
[D ocket N o. TCR 76-146]

Ector Shopping C enter, O dessa, Texas
(“ Ector” ) has requested a prior certification pur­
suant to section 1101(b)(1) of the Internal Revenue
Code (“ Code” ), as amended by section 2(a) of
the Bank Holding Company Tax Act of 1976, that
its proposed divestiture of all the 9800 shares now
held by Ector of the Frist National Bank of Olney,
Olney, Texas (“ Bank” ), through the distribution
of such shares to the four shareholders of Ector,
is necessary or appropriate to effectuate the poli­
cies of the Bank Holding Company Act (12 U.S.C.
§ 1841 et. seq.) (“ BHC Act” ).
In connection with this request, the following




365

information is deemed relevant for purposes of
issuing the requested certification:1
1. Ector is a corporation organized under the
laws of the state of Texas on November 12, 1959.
On February 11, 1966, Ector acquired ownership
and control of 9800 shares, representing 39.2
percent of the outstanding voting shares of Bank.
Ector now owns 9800 shares, representing 39.2
percent of the outstanding voting shares of Bank.
2. Ector became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
ownership and control at that time of more than
25 percent of the outstanding voting shares of
Bank, and it registered as such with the board on
June 30, 1971.
3. Ector would have been a bank holding com­
pany on July 7, 1970, if the BHC Act Amend­
ments of 1970 had been in effect on that date,
by virtue of its ownership of more than 25 percent
of the outstanding voting shares of Bank.
4. Ector holds property acquired by it on or
before July 7, 1970, the disposition of which
would, but for the proviso of section 4(a)(2) of
the BHC Act, be necessary or appropriate to
effectuate section 4 of the BHC Act if Ector were
to remain a bank holding company beyond De­
cember 31, 1980, and which property would, but
for such proviso, be “ prohibited property” within
the meaning of § 1103(c) of the Code. Section
1103(g) of the Code provides that any bank hold­
ing company may elect, for purposes of Part VIII
of subchapter O of chapter 1 of the Code, to have
the determination of whether property is “ prohib­
ited property” or is property eligible to be distrib­
uted without recognition of gain under section
1101(b)(1) of the Code, made under the BHC Act
as if such Act did not contain the proviso of section
4(a)(2) thereof. Ector has made such an election
by resolution of its board of directors, and has
filed a written statement with the board to that
effect.
On the basis of the foregoing information, it
is hereby certified that:
(A)
Ector is a qualified bank holding corpora­
tion, within the meaning of section 1103(b) of the
Code, and satisfies the requirements of that sec­
tion;

1. This information derives from Ector’s correspondence
with the board concerning its request for this certification,
Ector’s Registration Statement filed with the board pursuant
to the BHC Act, and other records of the board.

366

Federal Reserve Bulletin □ April 1979

(B) the 9800 shares of Bank that Ector proposes
to distribute to its shareholders are all or part of
the property by reason of which Ector controls
(within the meaning of section 2(a) of the BHC
Act) a bank or bank holding company; and
(C) the distribution of the 9800 shares of Bank
is necessary or appropriate to effectuate the poli­
cies of the BHC Act.
This certification is based upon the repre­
sentations made to the board by Ector and upon
the facts set forth above. In the event the board
should hereafter determine that facts material to
this certification are otherwise than as represented
by Ector, or that Ector has failed to disclose to
the board other material facts, it may revoke this
certification.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority, (12 C.F.R. § 265.2(b)(3)), effective
March 6, 1979.
(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

First Missouri Banks, Inc.,
Creve Coeur, Missouri
P rior Certification Pursuant to the
Bank Holding Com pany Tax A c t of 1976
[D ocket No. TCR 76-106(c)]

First Missouri Banks, Inc., Creve Coeur, Mis­
souri (“ First Missouri” ), has requested a prior
certification pursuant to § 1101(c)(2) of the Inter­
nal Revenue Code (the “ Code” ), as amended by
§ 3(a) of the Bank Holding Company Tax Act of
1976 (the “ Tax Act” ), that the proposed distri­
bution by First Missouri to its shareholders of
shares of a new corporation to be known as
Properties One, Inc. (“ New Corp” ), to be formed
to acquire the property described in Schedule A
and now held by First Properties, Inc. (“ Proper­
ties” ), a subsidiary of First Missouri, is necessary
or appropriate to effectuate § 4 of the Bank Hold­
ing Company Act (12 U.S.C. § 1843) (“ BHC
Act” ).1
1.
On December 21, 1978, the board issued a prior certifi­
cation pursuant to the Tax Act relating to the proposed divesti­
ture by First Missouri of certain real property. First Missouri
now proposes to divest additional properties by placing them
in New Corp and distributing the shares of New Corp to the
shareholders of First Missouri. Accordingly, this certification
amends the board’s certification of December 21, 1978, and
provides certification for the additional real property that First
Missouri proposes to transfer to New Corp.




In connection with this request, the following
is deemed relevant for purposes of issuing the
requested certification:2
1. First Missouri is a corporation organized
under the laws of the state of Missouri on No­
vember 24, 1969. Properties is a corporation or­
ganized under the laws of the state of Missouri
on May 7, 1970. On May 8, 1970, First Missouri
acquired ownership and control of 500 shares,
representing 100 percent of the outstanding voting
shares, of Properties.
2. On May 7, 1970, First Missouri acquired
ownership and control of 13,178 shares, repre­
senting 87.1 percent of the outstanding voting
shares, of Creve Coeur Bank & Trust Company,
Creve Coeur, Missouri (“ Bank” ),3 and thereby,
on the same date, acquired indirect ownership and
control of Olive Boulevard Corporation, Creve
Coeur, Missouri (“ Olive” ), a subsidiary of Bank.
On May 8, 1970, Olive was merged into Proper­
ties.
3. First Missouri became a bank holding com­
pany on December 31, 1970, as a result of the
1970 Amendments to the BHC Act, by virtue of
its ownership and control at that time of more than
25 percent of the outstanding voting shares of
Bank, and it registered as such with the board on
August 24, 1971. First Missouri would have been
a bank holding company on July 7, 1970, if the
BHC Act Amendments of 1970 had been in effect
on such date, by virtue of its ownership and control
on that date of more than 25 percent of the out­
standing voting shares of Bank.
4. Properties owns four parcels of real property
located in St. Louis County, Missouri, described
in Schedule A hereto, the disposition of which
would be necessary or appropriate to effectuate
section 4 of the BHC Act if First Missouri were
to be a bank holding company beyond December
31, 1980.
5. First Missouri proposes to organize New
Corp for the sole purpose of receiving the above­
described four parcels of real property from
Properties. After the transfer of the four parcels
to New Corp, the shares of New Corp will be

2. This information derives from First Missouri’s corre­
spondence with the board concerning its request for certifi­
cation, First Missouri’s Registration Statement filed with the
board pursuant to the BHC Act, and other records of the board.
3. The name of Bank has since been changed to First
Missouri Bank of Creve Coeur, Creve Coeur, Missouri.

Law Department

distributed pro rata to the common shareholders
of First Missouri.
6.
First Missouri has committed to the board
that New Corp will have no directors or officers
in common with First Missouri or any subsidiary
of First Missouri.
On the basis of the foregoing information, it
is hereby certified that:
(A) First Missouri is a qualified bank holding
corporation, within the meaning of § 1103(b) of
the Code, and satisfies the requirements of that
subsection;
(B) each of the four parcels of real property
described in Schedule A hereto is “ prohibited
property” within the meaning of § 1103(c) of the
Code; and
(C) the exchange of the four parcels of real
property for shares of New Corp and the distri­
bution of such shares is necessary or appropriate
to effectuate § 4 of the BHC Act.
This certification is based upon the repre­
sentations and commitments made to the board by
First Missouri and upon the facts set forth above.
In the event that the board should hereafter deter­
mine that facts material to this certification are
otherwise than as represented by First Missouri,
or that First Missouri has failed to disclose to the
board other material facts or to fulfill any commit­
ments made to the board in connection herewith,
it may revoke this certification.
By order of the Board of Governors of the
Federal Reserve System, acting through its Gen­
eral Counsel pursuant to delegated authority (12
C.F.R. § 265.2(b)(3)), effective March 22, 1979.
(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the Board.

Schedule A
First Missouri Banks, Inc.
[D ocket N o. TCR 76-106(c)]

The following is a summary description of the
four parcels of real property to be transferred to
New Corp, to which this prior certification relates.
Each of the parcels described below was acquired
by First Missouri on May 7, 1970, as a result of First
Missouri’s acquisition of Bank, and each was held
by Olive on that date.
1.
Nine acres of real property located on Lot
2 of the Lake House farm Subdivision in Section




367

3, Township 45 North, Range 5 East, City of Creve
Coeur, St. Louis County, Missouri, acquired by
Olive in 1963.
2. Lots 4 and 6 of Hutchinson’s Subdivision
of the Ellisville Farm, including a tract in Section
5, Township 44 North, Range 4 East, St. Louis
County, Missouri, acquired by Olive in 1968.
3. A portion of the Southeast Quarter of Section
2, Township 44 North, Range 3 East, St. Louis
County, Missouri, acquired by Olive in 1966.
4. A tract of land in U.S. Survey 163, Town­
ship 45 North, Range 3 East, St. Louis County,
Missouri, acquired by Olive in 1969.

Republic of Texas Corporation,
Dallas, Texas
P rior Certification under the
Bank Holding Com pany Tax A c t of 1976
[D ocket No. TCR 76-107]

Republic of Texas Corporation, Dallas, Texas
(“ Republic” ) has requested a prior certification
pursuant to § 6158(a) of the Internal Revenue
Code (the “ Code” ), as amended by § 3(a) of the
Bank Holding Company Tax Act of 1976 (the
“ Tax Act” ), that the proposed sale by Oxford
Corporation, a subsidiary of Republic, of a fifty
percent joint venture interest in Westgate Com­
pany which owns 37.49 acres of certain real prop­
erty located in Irving, Texas (“ Westgate” ), is
necessary or appropriate to effectuate § 4 of the
Bank Holding Company Act (12 U.S.C. § 1843
et seq.) (“ BHC Act” ). Oxford proposes to sell
Westgate to an individual purchaser.
In c o n n e c t io n w ith th is r e q u e s t, th e f o l l o w in g

information is deemed relevant for purposes of
issuing the requested certification:1
1. On July 7, 1970, Republic National Bank
of Dallas (“ Old Republic Bank” ), a national
banking association, indirectly controlled 29.9
percent of the outstanding voting shares of Oak
Cliff Bank and Trust Company, Dallas, Texas
(“ Oak Cliff Bank” ).
2. On July 7, 1970, Old Republic Bank indi­
rectly controlled, through the Howard Corporation
(“ Howard” ), a trusteed affiliate, property the

1.
This information derives from Republic’s correspondence
with the board concerning its request for this certification,
Republic’s Registration Statement filed with the board pursuant
to the BHC Act as well as the Registration Statement of
Republic National Bank and other records of the board.

368

Federal Reserve Bulletin □ April 1979

disposition of which would be necessary or appro­
priate to effectuate § 4 of the BHC Act if Old
Republic Bank were to continue to be a bank
holding company beyond December 31, 1980,
which property is “ prohibited property” within
the meaning of § 1103(c) of the Code.
3. Old Republic Bank became a bank holding
company on December 31, 1970, as a result of
the 1970 Amendments to the BHC Act, by virtue
of its indirect control at that time of more than
25 percent of the outstanding voting shares of Oak
Cliff Bank, and it registered as such with the board
on September 24, 1971.
4. Republic is a corporation that was organized
under the* laws of the state of Delaware on July
12, 1972, for the purpose of effecting the reorgan­
ization of Old Republic Bank into a subsidiary of
Republic.
5. On September 10, 1973, the board ruled that
in the event Republic were to become a bank
holding company through the acquisition of the
successor by merger to Old Republic Bank,
Republic would not be regarded as a “ successor”
to Old Republic as defined in § 2(e) of the BHC
Act for the purposes of § 2(a)(6) of the BHC Act,
or as a “ company covered in 1970,” as that term
is defined in the BHC Act, and that Republic was
not entitled to the benefit of any grandfather privi­
leges that Old Republic Bank may have possessed
pursuant to the proviso in § 4(a)(2) of the BHC
Act.
6. By Order dated October 25, 1973, the board
approved Republic’s application under § 3(a)(1) of
the BHC Act to become a bank holding company
through the acquisition of 100 percent of the voting
shares (less directors’ qualifying shares) of the
successor by merger to Old Republic Bank and
the indirect acquisition of control of 29.9 percent
of the voting shares of Oak Cliff Bank. Pursuant
to the provisions of § 4(a)(2) of the BHC Act,
Republic was required by that order to divest itself,
within two years from the date as of which it would
become a bank holding company, of the imper­
missible nonbanking interests that would be di­
rectly or indirectly controlled by the successor by
merger to Old Republic Bank, including such
impermissible interests held by Howard.
7. On May 9, 1974, in a transaction described
in § 368(a)(1)(A) and § 368(a)(2)(D) of the Code,
Old Republic Bank was merged into the present
Republic National Bank of Dallas (“ New Republic
Bank” ), a national banking association which was
a wholly-owned subsidiary (except for directors’




qualifying shares) of Republic. New Republic
Bank thereby acquired substantially all of the
properties of Old Republic Bank and Republic
thereupon became a bank holding company. By
virtue of three one-year extensions granted by the
board, Republic presently has until May 9, 1979,
to complete the divestitures required by the board’s
Order of October 25, 1973.
8. As part of the same transaction by which
Republic became a bank holding company, in a
transaction to which § 351 of the Code applied,
Republic acquired beneficial interests in the shares
of Howard held by trustees for the benefit of
shareholders of New Republic Bank, which shares
are shares described in § 2(g)(2) of the BHC Act.
9. Westgate was acquired by Howard on No­
vember 13, 1969, and is a part of the property
of Howard in which Republic acquired a beneficial
interest pursuant to § 2(g)(2) of the BHC Act.
On the basis of the foregoing information, it
is hereby certified that:
(A) Prior to May 9, 1974, Old Republic Bank
was a “ qualified bank holding corporation,”
within the meaning of subsection (b) of § 1103
of the Code, and satisfied the requirements of that
subsection.
(B) New Republic Bank is a corporation that
acquired substantially all of the properties of a
qualified bank holding corporation, and as such
is treated as a qualified bank holding corporation
for the purposes of § 6158 of the Code, pursuant
to § 3(d) of the Tax Act.
(C) Republic is a corporation in control (within
the meaning of § 2(a)(2) of the BHC Act) of New
Republic Bank, and as such is treated as a qualified
bank holding corporation for the purposes of
§ 6158 of the Code, pursuant to § 3(d) of the Tax
Act.
(D) Howard is a subsidiary (within the meaning
of § 2(d) of the BHC Act) of Republic, and as
such is treated as a qualified bank holding cor­
poration for the purposes of § 6158 of the Code,
pursuant to § 3(d) of the Tax Act.
(E) Westgate is “ prohibited property” for the
purposes of § 6158 of the Code; and
(F) the sale of Westgate is necessary or appro­
priate to effectuate § 4 of the BHC Act.
This certification is based upon the repre­
sentations made to the board by Republic and upon
the facts set forth above. In the event the board
should hereafter determine that facts material to
this certification are otherwise than as represented
by Republic, or that Republic has failed to disclose

Law Department

to the board other material facts, it may revoke
this certification.
By order of the Board of Governors acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(B)(3)), effective
March 30, 1979.
(Signed)
[s e a l ]

G r if f it h

L.

G

arw ood,

D eputy Secretary of the Board.

C.I.T. Financial Corporation,
New York, New York
P rior Certification Pursuant to the Bank
H olding Com pany Tax A c t of 1976
[D ocket N o. TCR 76-167]

C.I.T. Financial Corporation, New York, New
York (“ C .I.T .” ), has requested a prior certifi­
cation pursuant to section 6158(a) of the Internal
Revenue Code (“ Code” ), as added by section 3(a)
of the Bank Holding Company Tax Act of 1976
(“ Tax Act” ), that its sale of 75.1 percent of the
outstanding voting shares of National Bank of
North America, Jamaica, New York (“ NBNA” ),
to NatWest Holdings Inc., Wilmington, Delaware
(“ Holdings” ), a wholly-owned subsidiary of Na­
tional Westminster Bank Limited, London, Eng­
land, is necessary or appropriate to effectuate the
policies of the Bank Holding Company Act (12
U.S.C. § 1841 et seq.) (“ BHC Act” ).
In connection with this request for a prior cer­
tification, the following information is deemed
relevant for purposes of issuing the requested
certification:1
1. C.I.T. is a corporation organized under the
laws of Delaware on January 24, 1924.
2. C.I.T. purchased 6,045,081, representing
97.8 percent, of the outstanding voting shares of
NBNA on March 22, 1965, and has owned such
shares continuously since that date. C.I.T. pres­
ently owns and controls 100 percent (less direc­
tors’ qualifying shares) of the outstanding voting
shares of NBNA.2
1. This information derives from C .I.T .’s correspondence
with the board concerning its request for this certification,
C .I.T .’s Registration Statement filed with the board pursuant
to the BHC Act, and other records of the board.
2. C.I.T. presently owns 6,215,494 of the outstanding vot­
ing shares of NBN A. Under section 6158 of the Code, shares
of NBNA acquired by C.I.T. after July 7, 1970, generally
do not qualify for the tax benefits of section 6158(a) of the
Code when sold by an otherwise qualified bank holding com ­
pany.




369

3. C.I.T. became a bank holding company on
December 31, 1970, as a result of the 1970
Amendments to the BHC Act, by virtue of its
direct ownership and control at that time of more
than 25 percent of the outstanding voting shares
of NBNA, and it registered as such with the board
on October 4, 1971. C.I.T. would have been a
bank holding company on July 7, 1970, if the 1970
Amendments of the BHC Act had been in effect
on such date, by virtue of its direct ownership and
control on that date of more than 25 percent of
the outstanding voting shares of NBNA.
4. C.I.T. holds property acquired by it on or
before July 7, 1970, the disposition of which
would be necessary or appropriate to effectuate
section 4 of the BHC Act if C.I.T. were to
continue to be a bank holding company beyond
December 31, 1980. This property is “ prohibited
property” within the meaning of section 1103(c)
of the Code.
5. Neither C.I.T. nor any subsidiary of C.I.T.
owns or controls more than 5 percent of the shares
of any other bank as such term is defined in section
2(c) of the BHC Act or in any company that
controls a bank.
6. C.I.T. has advised the board that it intends
to retain 24.9 percent of the shares of NBNA. In
light of the longstanding relationship between
C.I.T. and NBNA, the board believes that C .I.T .’s
retention of a substantial economic interest in
NBNA would enable C.I.T. to continue to influ­
ence the management, policies and operations of
NBNA, which is contrary to one of the principal
purposes of the BHC Act of separating banking
and commerce. Accordingly, based on the infor­
mation presented, the board believes that the sale
by C.I.T. of 75.1 percent of the shares of NBNA
will not terminate C .I.T .’s status as a bank holding
company, and the retention by C.I.T. of 24.9
percent of the shares of NBNA does not effectuate
the purposes of the BHC Act.
On the basis of the foregoing, it is hereby
certified that:
(A) C.I.T. is a qualified bank holding corpora­
tion within the meaning of section 1103(b) of the
Code, and satisfies the requirements of that sec­
tion;
(B) the 75.1 percent of the outstanding voting
shares of NBNA that C.I.T. proposes to sell to
Holdings are part of the property by reason of
which C.I.T. controls within the meaning of sec­
tion 2(a) of the BHC Act a bank or bank holding
company; and

370

Federal Reserve Bulletin □ April 1979

(C)
the sale of such shares of NBNA is neces­
sary or appropriate to effectuate the policies of the
BHC Act.3
This certification is based upon the facts pro­
vided to the board by C.I.T. In the event that the
board should hereafter determine that the facts
material to this certification are otherwise than as
provided by C .I.T ., or that C.I.T. has failed to
disclose to the board other material facts, the board
may revoke this certification.
By order of the Board of Governors, effective
March 16, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, Partee, and T eeters.

(Signed)
[s e a l ]

G r if f it h

L.

G

arw ood,

D eputy Secretary of the Board.

O r d e rs U n d e r S e c t io n 2
B a n k H o l d in g C o m p a n y A c t

of

The Charter Company,
Jacksonville, Florida
O rder Granting D eterm ination
Under the Bank H olding Com pany A c t

The Charter Company, Jacksonville, Florida
(“ Charter” ), a bank holding company within the
meaning of the Bank Holding Company Act of
1956, as amended, has requested a determination
pursuant to section 2(g)(3) of the Act (12 U.S.C.
§ 1841(g)(3)) that it is not in fact capable of
controlling Jacksonville National Bank, Jackson­
ville, Florida (“ Bank” ), St. Johns Group, Inc.,
Jacksonville, Florida, or the principals of St. Johns
Group, Inc., Jacksonville, Florida, or the
principals of St. Johns Group, Inc., notwith­
standing the indebtedness incurred by St. Johns
Group to Charter as a result of the transfer.1
3.
While the board believes that the proposed divestiture
by C.I.T. of 75.1 percent of the outstanding voting shares
of NBNA will not terminate C .I.T .’s status as a bank holding
company, the divestiture of C.I.T. of 75.1 percent of the shares
of NBNA is a step toward the separation of banking and
nonbanking business, and the board believes that such divesti­
ture may be regarded as necessary or appropriate to effectuate
the policies of the BHC Act. In this connection, the board
notes the divestiture of the remaining 24.9 percent of the shares
of N BNA held by C.I.T. would also be necessary or appro­
priate to effectuate the policies of the BHC Act, and the board
would be prepared to issue a prior certification for the divesti­
ture of those shares.




Under the provisions of § 2(g)(3) of the Act,
shares transferred after January 1, 1966, by any
bank holding company to a transferee that is in­
debted to the transferor or has one or more of­
ficers, directors, trustees, or beneficiaries in com­
mon with or subject to control by the transferor,
are deemed to be indirectly owned or controlled
by the transferor unless the board, after opportu­
nity for hearing, determines that the transferor is
not in fact capable of controlling the transferee.
St. Johns Group is a closely-held corporation
which was formed for the purpose of purchasing
Charter Mortgage Company and none of its share­
holders are presently related to Charter. There is
no evidence that the financial resources of St.
Johns Group and its principals are not sufficient
to repay the debt owed by St. Johns Group to
Charter, and Charter has not retained any security
interest in Bank or Charter Mortgage Company.
There are no common directors or officers between
Charter and St. Johns Group or Bank, and all
transactions between Charter and St. Johns Group
or Bank are conducted in the ordinary course of
business. Moreover, it appears that the sale by
Charter of its interest in Charter Mortgage Com­
pany and Bank was negotiated at arm’s length.
Furthermore, Charter’s board of directors adopted
a resolution to the effect that Charter does not,
and will not attempt to, exercise a controlling
influence over St. Johns Group or Bank. In addi­
tion, the board of directors of St. Johns Group
and Bank adopted resolutions to the effect that they
are not and will not be controlled by Charter.
Finally, the principal shareholders of St. Johns
Group have made affidavits that they are not, and
will not be subject to Charter’s control.
Based on these and other facts of record, the
1.
Effective December 31, 1976, Charter sold its shares of
Bank to Mr. John D. Uible, and sold Charter Mortgage
Company (“ CMC” ) to St. Johns Group, Inc., the shares of
which were owned by Mr. Uible. The aggregate purchase price
for CMC and Bank was approximately $14.7 million, of which
$1,345 million was in the form of a promissory note from
St. Johns Group to Charter. In its interpretation of section
2(g)(3) the board has taken the position that the presumption
of that section applies to individual transferees, as well as to
parents and subsidiaries of transferees (12 C.F.R. § 225.138).
In this case, a principal shareholder of the transferee should
be regarded as a parent of the transferee for the purposes of
§ 2(g)(3) of the Act. Thus, while St. Johns Group, Inc. was
not directly a transferee of Bank, Mr. Uible was the transferee
of Bank. Moreover, two former officers of Charter acquired
shares of Bank, as well as St. Johns Group, from Mr. Uible,
and these three individuals guaranteed payment of St. Johns
Group’s indebtedness to Charter.

Law Department

board has determined that Charter is not, in fact,
capable of controlling St. Johns Group or Bank,
and that the request of Charter for a determination
pursuant to § 2(g)(3) be and hereby is granted.
Any material change in the facts or circumstances
relied upon in making this determination or any
material breach of any of the commitments upon
which the decision is based could result in recon­
sideration of the determination made herein.
By order of the Board of Governors, effective
March 2, 1979.
V o tin g for this action: Chairm an M iller and G overnors
W a llich , C o ld w e ll, and P artee. A b sen t and not voting:
G overn or T eeters.

(Signed)
[s e a l ]

T heodore

E.

A

l l is o n ,

Secretary of the Board.

United Virginia Bancshares, Incorporated,
Richmond, Virginia
O rder G ranting Determ ination
Under the Bank H olding Com pany A c t

United Virginia Bancshares, Incorporated
(“ UVB” ), a bank holding company within the
meaning of the Bank Holding Company Act of
1956, as amended, has requested a determination
pursuant to section 2(g)(3) of the Act (12 U.S.C.
§ 1841(g)(3)) that ii is not in fact capable of
controlling Towne Square Apartments, Newport
News, Virginia (“ TSA” ), or the individual trans­
feree of a one-half interest in TSA, notwith­
standing the indebtedness to UVB incurred by
TSA as a result of the transfer, and notwith­
standing the fact that TSA’s transferee guaranteed
a portion of such indebtedness.
Under the provisions of section 2(g)(3) of the
Act, shares transferred after January 1, 1966, by
any bank holding company to a transferee that is
indebted to the transferor or has one or more
officers, directors, trustees, or beneficiaries in
common with or subject to control by the trans­
feror, are deemed to be indirectly owned or con­
trolled by the transferor unless the board, after
opportunity for hearing, determines that the trans­
feror is not in fact capable of controlling the
transferee.
On the basis of the following facts, it is hereby
determined that UVB is incapable of controlling
TSA or its transferee. The equity of TSA’s trans­
feree in TSA, based on fair market value, exceeds
his indebtedness to UVB. The total indebtedness
of TSA to UVB is approximately 10 percent of




371

TSA’s fair market value, and the guarantee exe­
cuted by TSA’s transferee approximates only 3
percent of TSA’s fair market value. TSA’s trans­
feree is not personally liable on TSA’s note to
UVB. There are no common directors or officers
between UVB and TSA, nor is TSA’s transferee
an officer or director of UVB. Moreover, it appears
that the sale by UVB of its interest in TSA was
negotiated at arm’s length. In addition, UVB’s
Board of Directors has adopted a resolution to the
effect that UVB does not, and will not attempt
to, exercise control or controlling influence over
TSA’s transferee and that should UVB institute
foreclosure proceedings on TSA it will immedi­
ately notify the board and divest any portion of
TSA so acquired within six months. In addition,
TSA’s transferee has indicated that UVB is
incapable of controlling or exerting a controlling
influence over him.
Accordingly, it is ordered, that the request of
UVB for a determination pursuant to section
2(g)(3) is granted. This determination is based on
representations made to the board by UVB and
TSA’s transferee. In the event that the board
should hereafter determine that facts material to
this determination are otherwise than as repre­
sented, or that UVB or TSA’s transferee has failed
to disclose to the board other material facts, this
determination may be revoked, and any change
in the facts and circumstances relied upon by the
board in making this determination could result
in the board reconsidering the determination made
herein.
By order of the Board of Governors, acting
through its General Counsel, pursuant to delegated
authority (12 C.F.R. § 265.2(b)(1)), effective
March 30, 1979.
(Signed)
[s e a l ]

G r if f it h

L.

G arw ood,

D eputy Secretary of the B oard.

O r d er A p p r o v in g
A p p l ic a t io n for M e rg er

of

Banks

Elliott State Bank,
Jacksonville, Illinois
First National Bank of Jacksonville
Elliott State Bank, Jacksonville, Illinois (“ Ap­
plicant” ), a state member bank of the Federal
Reserve System, has applied, pursuant to the Bank
Merger Act (12 U.S.C. § 1828(c)), for the board’s
approval to merge with First National Bank of

372

Federal Reserve Bulletin □ April 1979

Jacksonville, Jacksonville, Illinois (“ Bank” ),
under the charter and title of Applicant. Incident
to the proposed merger, the present office of Bank
would become a branch office of the resulting
bank.
In view of the condition of Bank, the Comp­
troller of the Currency, the primary supervisory
authority for Bank, has advised the board of the
existence of a situation requiring expeditious ac­
tion by the board in accordance with the provi­
sions of section 1828(c) of the Act. In view of
the situation set forth below, the comment period
afforded interested parties to submit comments and
views has been abbreviated. The board has con­
sidered the application and the comments received
from the Comptroller of the Currency in light of
the factors set forth in the Act, including the effect
of the proposal on competition, the financial and
managerial resources and prospects of the banks
involved, and the convenience and needs of the
communities to be served.
Applicant ($81.9 million in deposits) ranks 122d
in the state of Illinois, and controls 0.1 percent
of deposits in all commercial banks in the state.1
Acquisition of Bank ($35.9 million in deposits)
would increase Applicant’s share of bank deposits
in Illinois by only 0.05 percent, and would not
significantly increase the concentration of banking
resources in Illinois.
Applicant ($81.9 million in deposits) ranks 122nd
in the state of Illinois, and controls 0.1 percent
33.7 percent of market deposits. Bank is the third
largest bank in the relevant market, and controls
14.8 percent of the market’s commercial bank
deposits. Consummation of the proposal would
have substantially adverse competitive effects
upon existing competition. In addition, the board
views with serious concern the increase in con­
centration of banking resources within the relevant
market that would result from consummation of
this proposal, and regards such an increase as a
significantly adverse factor. However, based upon

1. All banking data are as of June 30, 1978.
2. The Jacksonville banking market is approximated by
Morgan County and Scott County, Illinois.




all the facts of record, including the financial
condition of Bank, it is the board’s opinion that
the substantially adverse effects associated with
this proposal are clearly outweighed by the con­
siderations discussed below.
The financial and managerial resources and fu­
ture prospects of Applicant are regarded as gener­
ally satisfactory, particularly in light of commit­
ments by Applicant to, among other actions, pro­
vide additional equity capital to Applicant upon
consummation of the proposal. Moreover, in view
of the financial condition of Bank, and on the basis
of the information before the board, it is apparent
that a situation exists at Bank requiring expeditious
action pursuant to the expediting provision of
section 1828(c) of the Act in order to safeguard
depositors of Bank. While the board would prefer
a less anticompetitive merger as a means for serv­
ing the convenience and needs of the public, it
appears that such an alternative is not readily
available. Thus, banking factors and convenience
and needs considerations lend such significant
weight toward approval as to clearly outweigh in
the public interest the substantially adverse effects
associated with this proposal.
It is the board’s judgment that any disposition
of the application other than by approval would
be inconsistent with the public interest and the
proposed transaction should be approved. Accord­
ingly, the application to merge, and incident
thereto to establish a branch, is approved for the
reasons summarized above. The transaction shall
not be made (a) before the fifth calendar day after
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 St.
Louis, pursuant to delegated authority.
By order of the Board of Governors, effective
March 2, 1979.
V o tin g for this action: Chairm an M iller and G o v er­
nors W a llich , C o ld w e ll, and Partee. A b sen t and not
voting: G overn or T eeters.

[SEAL]

(Signed) Theodore E. A llison,
Secretary of the Board.

Law Department

373

O r d e rs A pp r o v e d U n d e r B a n k H o l d in g C o m p a n y A c t
B y the B o a r d o f G overn ors

During March 1979 the Board of Governors approved the applications listed below. Copies are
available upon request to Publications Services, Division of Support Services, Board of Governors
of the Federal Reserve System, Washington, D.C. 20551.
Section 3

A pplican t

Citizens Bankers, Inc.,
Baytown, Texas
Citizens Bancorporation,
Charles City, Iowa
Fennimore Bancorporation,
Inc., Fennimore, Wisconsin
First Banc Group of Ohio,
Inc., Columbus, Ohio
First Northern Bancorporation,
Anchorage, Alaska
Manufacturers National
Corporation, Detroit,
Michigan
Treleco, Inc.,
Trenton, Nebraska
Yellow Medicine Bancshares,
Inc., Granite Falls,
Minnesota

B oard action
(effective
date)

Bank(s)

Baytown State Bank,
Baytown, Texas
The Citizens National Bank of
Charles City, Charles City,
Iowa
The First State Bank,
Fennimore, Wisconsin
The Marion County Bank,
Marion, Ohio
Alaska Pacific Bank,
Anchorage, Alaska
American Heritage Bancshares,
Inc., East Lansing, Michigan
State Bank of Trenton,
Trenton, Nebraska
Yellow Medicine County Bank,
Granite Falls, Minnesota

March 29, 1979
March 15, 1979

March 5, 1979
March 12, 1979
March 30, 1979
March 26, 1979

March 1, 1979
March 13, 1979

Sections 3 and 4

A pplican t

Pioneer Bancorporation, Inc.,
St. Louis, Missouri
First Bancorporation of
Holdenville, Inc.,
Holdenville, Oklahoma




Bank(s)

Pioneer Bank and Trust
Company, Maplewood,
Missouri
The First National Bank
and Trust Company of
Holdenville, Holdenville,
Oklahoma

Nonbanking
com pany
(or activity)

Effective
date

To engage de novo March 23, 1979
in credit-related insurance activities
To engage in credit- March 28, 1979
related insurance
activities

374

Federal Reserve Bulletin □ April 1979

Section 4
Nonbanking
com pany
(or activity)

A pplican t

Chevalier, Inc.,
Postville, Iowa

Effective
date

To continue acting as agent
for the sale of credit life
and credit accident and health
insurance.

March 26, 1979

B y F ederal R e se rv e B anks

Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of
the orders are available upon request to the Reserve Banks.
Section 3
A pplican t

First Bancorp, Inc.,
Corsicana, Texas

Bank(s)

Forney Bank and Trust
Company, Forney, Texas

R eserve
Bank

Effective
date

Dallas

March 21, 1979

R eserve
Bank

Effective
date

Section 4

A pplicant

Gary-Wheaton Corporation,
Wheaton, Illinois
Third National Corporation,
Nashville, Tennessee

Nonbanking
Company
(or activity)

G-W Life Insurance Company,
Phoenix, Arizona
Third National Life In­
surance Company, Phoenix,
Arizona

Chicago
Atlanta

March 20, 1979
February 23, 1979

O r d e r A p p r o v e d U n d e r B a n k M e rg er A c t

A p p lic a n t

B ank(s)

The Midwest Bank & Trust
Company, Cleveland, Ohio

The Midwest Bank & Trust
Company of Portage
County, Aurora, Ohio




R e se rv e
B an k

Cleveland

E ffective
d a te

March 23, 1979

Law Department

375

B y F e d e r a l R e se r ve B a n k s

Recent applications have been approved by the Federal Reserve Banks as listed below. Copies
of the orders are available upon request to the Reserve Banks.
Section 3
A pplican t

Society Corporation,
Cleveland, Ohio

R eserve
Bank

Bank(s)

First National Bank of
Clermont County,
Bethal, Ohio

Effective
date

Cleveland

February 7, 1979

O r d e rs A pp r o v e d U n d e r B a n k M erg er A c t

The Central Trust
Company, Reynolds­
burg, Ohio

P e n d in g C a se s I n v o l v in g

R eserve
Bank

Bank(s)

A pplican t

The Central Trust Company
of Zanesville,
Zanesville, Ohio

the

B oard

of

Cleveland

Effective
date

February 14, 1979

G overnors

Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party.
California Life Corporation v. B oard of G ov­
ernors , filed January 1979, U.S.C.A. for the

District of Columbia.
Hunter H olding Com pany v. B oard of G overnors,

filed December 1978, U.S.C.A. for the Eighth
Circuit.
Consumers Union of the United States v. G.
W illiam M iller, et a l., filed December 1978,
U.S.D.C. for the District of Columbia.
Com m ercial N ational Bank, et a l., v. B oard of
G overnors , filed December 1978, U.S.C.A. for
the District of Columbia.
Ella lackson et a l., v. B oard of G overnors, filed
November 1978, U.S.C.A. for the Fifth Circuit.
M etro-N orth State Bank, K ansas City v. B oard
of G overnors, filed October 1978, U.S.C.A. for
the Eighth Circuit.
M anchester-T ow er G rove Community O rgani­
zation /A C O R N v. B oard of G overnors, filed

September 1978, U.S.C.A. for the District of
Columbia.
Beckley v. B oard of G overnors, filed July 1978,
U.S.D.C. for the Northern District of Illinois.




Independent Bankers A ssociation of Texas v. First
N ational Bank in D allas, et a l., filed July 1978,

U.S.C.A. for the Northern District of Texas.
M id-N ebraska Bancshares, Inc. v. B oard of G ov­
ernors, filed July 1978, U.S.C.A. for the Dis­

trict of Columbia.
N C N B Corporation v. B oard of G overnors, filed

June 1978, U.S.C.A. for the Fourth Circuit.
United States League of Savings A ssociations v.
B oard of G overnors, filed May 1978, U.S.D.C.

for the District of Columbia.
Security Bancorp and Security N ational Bank v.
B oard of G overnors, filed March 1978,

U.S.C.A. for the Ninth Circuit.
M ichigan N ational Corporation v. B oard of G o v­
ernors, filed January 1978, U.S.C.A. for the

Sixth Circuit.
W isconsin Bankers A ssociation v. B oard of G ov­
ernors, filed January 1978, U.S.C.A. for the

District of Columbia.
Vickars-Henry Corp. v. B oard of G overnors, filed

December 1977, U.S.C.A. for the Ninth Cir­
cuit.

376

Federal Reserve Bulletin □ April 1979

Emch v. The United States of A m erica , et a l.,

filed November 1977 for the Eastern District of
Wisconsin.
Central Bank v. B oard of G overnors, filed Oc­
tober 1977, U.S.C.A. for the District of Co­
lumbia.
Investment Com pany Institute v. B oard of G ov­
ernors, filed September 1977, U.S.D.C. for the
District of Columbia.
BankAm erica Corporation v. B oard of G over­
nors, filed May 1977, U.S.D.C. for the North­
ern District of California.
BankAm erica C orporation v. B oard of G over­
nors, filed May 1977, U.S.C.A. for the Ninth
Circuit.




R obert Farms , Inc. v. C om ptroller of the Cur­
rency, et a l., filed November 1975, U.S.D.C.

for the Southern District of California.
Florida A ssociation of Insurance A gents, Inc. v.
B oard o f G overnors, and N ational A ssociation
of Insurance A gents, Inc. v. B oard of G ov­
ernors, filed August 1975, actions consolidated

in U.S.C.A. for the Fifth Circuit.
D avid R. M errill, et a l., v. Federal Open M arket
Com mittee of the Federal R eserve System , filed

May 1975, U.S.D.C. for the District of Colum­
bia.
Bankers Trust N ew York Corporation v. B oard
of G overnors, filed May 1973, U.S.C.A. for
the Second Circuit.

Al

Financial and Business Statistics
C ontents

D o m e stic F in a n cial S ta tistic s

W e e k l y R e p o r t in g C o m m e r c ia l B a n k s

A3 Monetary aggregates and interest rates
A4 Factors affecting member bank reserves
A5 Reserves and borrowings of member
banks
A6 Federal funds transactions of money
market banks
P o l ic y I n s t r u m e n t s
AS Federal Reserve Bank interest rates

A9 Member bank reserve requirements
A 10 Maximum interest rates payable on
time and savings deposits at federally
insured institutions
A ll Federal Reserve open market
transactions
Fe d e r a l R e se r v e B a n k s

Assets and Liabilities of—
A20
All reporting banks
A21
Banks in New York City
A22
Banks outside New York City
A23 Balance sheet memoranda
A24 Commercial and industrial loans
A25 Gross demand deposits of individuals,
partnerships, and corporations
Fin a n c ia l M a r k e t s

A25 Commercial paper and bankers
acceptances outstanding
A26 Prime rate charged by banks on
short-term business loans
A26 Terms of lending at commercial banks
A27 Interest rates in money and capital
markets
A28 Stock market— Selected statistics

A 12 Condition and F.R. note statements
A 13 Maturity distribution of loan and
security holdings

A29 Savings institutions— Selected assets
and liabilities

M onetary

Fe d e r a l Fin a n c e

and

C r e d it A g g r e g a t e s

A13 Bank debits and deposit turnover
A 14 Money stock measures and components
A 15 Aggregate reserves and deposits of
member banks
A 15 Loans and investments of all
commercial banks
C o m m e rc ia l B a n k A ssets

and

L ia b il it ie s

A16 Last-Wednesday-of-month series
A 17 Call-date series
A18 Detailed balance sheet, September 30, 1978




A30 Federal fiscal and financing operations
A31 U.S. budget receipts and outlays
A32 Federal debt subject to statutory
limitation
A32 Gross public debt of U.S. Treasury—
Types and ownership
A33 U.S. government marketable
securities—Ownership, by maturity
A34 U.S. government securities dealersTransactions, positions, and financing
A35 Federal and federally sponsored credit
agencies— Debt outstanding

A2

Federal Reserve Bulletin □ April 1979

S e c u r it ie s M a r k e t s
C o r p o r a t e Fin a n c e

and

A36 New security issues— State and local
governments and corporations
A37 Open-end investment companies—Net
sales and asset position
A37 Corporate profits and their distribution
A38 Nonfinancial corporations—Assets and
liabilities
A38 Business expenditures on new plant
and equipment
A39 Domestic finance companies— Assets
and liabilities; business credit
R e a l E st a t e

A40 Mortgage markets
A41 Mortgage debt outstanding

In tern ation al S ta tistic s
A54 U.S. international transactions—
Summary
A55 U.S. foreign trade
A55 U.S. reserve assets
A56 Foreign branches of U.S. banks—
Balance sheet data
A58 Selected U.S. liabilities to foreign
official institutions
Re p o r t e d

by

Banks

in th e

U n it e d S t a t e s

A59 Liabilities to foreigners
A61 Banks’ own claims on foreigners
A62 Banks’ own and domestic customers’
claims on foreigners
A63 Banks’ own claims on unaffiliated
foreigners
A63 Liabilities to and claims on foreigners

C onsumer Installment C redit
S e c u r it ie s H o l d in g s

A42 Total outstanding and net change
A43 Extensions and liquidations
Fl o w

of

Funds

A44 Funds raised in U.S. credit markets
A45 Direct and indirect sources of funds to
credit markets
D o m e stic N on fin a n cia l S ta tistic s
A46 Nonfinancial business activity—
Selected measures
A46 Output, capacity, and capacity
utilization
A47 Labor force, employment, and
unemployment
A48 Industrial production—Indexes and
gross value
A50 Housing and construction
A51 Consumer and wholesale prices
A52 Gross national product and income
A53 Personal income and saving




and

Tr a n s a c t io n s

A64 Marketable U.S. Treasury bonds and
notes—Foreign holdings and
transactions
A64 Foreign official assets held at F.R.
Banks
A65 Foreign transactions in securities
R e p o r t e d b y N o n b a n k in g C o n c e r n s
th e U n it e d S ta t e s

in

A66 Short-term liabilities to and claims on
foreigners
A67 Long-term liabilities to and claims on
foreigners
In t e r e s t

and

Ex ch a n g e R ates

A68 Discount rates of foreign central banks
A68 Foreign short-term interest rates
A69 G u id e to T a b u la r P resen ta tio n
an d S ta tis tic a l R e le a s e s

Domestic Financial Statistics
1.10

A3

MONETARY AGGREGATES A N D INTEREST RATES
1978
Ql

Q2

1978
Q3

Q4

Oct.

1979

Nov.

Jan.

Feb.

Monetary and credit aggregates
(annual rates of change, seasonally adjusted in per cent)13

1
2
3
4
5
6
7
8

Member bank reserves

Total........................................................................
Required............................. .................................. .
Nonborrowed.........................................................
Monetary base1......................................................

Concepts of money2

M -l..........................................................................
M - l .......................................................................
M-2..........................................................................
M-3..........................................................................

8.9
14.5
9.9

6.6
5.0
7.0

8.1

6.2
0.6
6.7

8.6
8.6
6.6

2.3

2.1

4.6
8.4

7.6

9.3

9.2
7.2
8.4
8.4

9.9
10.4

4.4
r2.4
7.7
9.3

11.3
2.3
18.5

12.4
- 0 .9
19.2

8.1
6.0

6.0
-1.2
8.0

5.1

- 3 .6
- 5 .4
13.4
5.7

1.7

-2.0

'0.6

-0.1
-0 .4
-4 .9
7.9

6.0
6.6
2.2
8.6

-20.9
-20.9

1.7

- 5 .3
r—8.4

-3 .7
-7 .0

-20.6
- 0 .4

-5.1
4.7
6.7

-1.6

21.9
- 9 .6
24.5
9.6

5.1
- 7 .5

11.6

-1.6
19.3
12.0

12.0
9.3

9.0
-13.0
12.7
'8.5

8.6
-12.0
20.3
8.0

7.7

9.8

6.7

1.1

'19.2

11.3

6.5

2.7
5.5

-1.2
'2.8

2.2

4.7

Time and savings deposits

Commercial banks:
Total....................................................................
Savings.................................................................
Other time...........................................................
Thrift institutions 3..............................................

11.7
9.7

11.5
3.8
11.4
8.5

13 Total loans and investments at commercial banks4,

10.1

14.9

9
10
11
12

12.5

2.0

11.1
10.8

1978
Q2

Q3

1979
Q4

8.5

1979

1978
Jan.

Ql

Feb.

Mar.

Interest rates (levels, per cent per annum)

14
15
16
17

Short-term rates
Federal funds 5.......................................
Federal Reserve discount6....................
Treasury bills (3-month market yield) 7
Commercial paper (90- to 119-day)7-8.

18
19
20

Long-term rates
Bonds:
U.S. Government®.............................
State and local government10..........
Aaa utility (new issue)11...................

21

Conventional mortgages12...................

7.28
6.78
6.48
7.16

8.09
7.50
7.31
8.03

9.58
9.09
8.57
9.83

10.07
9.50
9.38
10.04

9.76
9.50
8.64
10.14

10.03
9.50
9.08
10.37

10.07
9.50
9.35
10.25

10.06
9.50
9.32
9.95

10.09
9.50
9.48
9.90

6.02

8.43

8.98

8.53
6.16
8.94

8.78
6.28
9.23

9.03
6.37
9.58

8.75
6.19
9.27

8.90
6.51
9.28

8.98
6.47
9.54

9.03
6.31
9.53

9.08
6.33
9.62

9.58

9.80

10.12

10.33

10.10

10.30

10.30

10.35

10.35

1 Includes total reserves (member bank reserve balances in the current
week plus vault cash held two weeks earlier), currency in circulation
(currency outside the U.S. Treasury, Federal Reserve Banks and the vaults
of commercial banks), and vault cash of nonmember banks.
2 M-l equals currency plus private demand deposits adjusted.
M-l -f equals M-l plus savings deposits at commercial banks, NOW
accounts at banks and thrift institutions, credit union share draft ac­
counts, and demand deposits at mutual savings banks.
M-2 equals M-l plus bank time and savings deposits other than large
negotiable certificates of deposit (CDs).
M-3 equals M-2 plus deposits at mutual savings banks, savings and
loan associations, and credit union shares.
3 Savings and loan associations, mutual savings banks, and credit
unions.
4 Quarterly changes calculated from figures shown in table 1.23.
5 Seven-day averages of daily effective rates (average of the rates on
a given date weighted by the volume of transactions at those rates).




6 Rate for the Federal Reserve Bank of New York.
7 Quoted on a bank-discount basis.
8 Beginning Nov. 1977, unweighted average of offering rates quoted by
five dealers. Previously, most representative rate quoted by these dealers.
9 Market yields adjusted to a 20-year maturity by the U.S. Treasury.
10 Bond Buyer series for 20 issues of mixed quality.
11 Weighted averages of new publicly offered bonds rated Aaa, Aa,
and A by Moody’s Investors Service and adjusted to an Aaa basis.
Federal Reserve compilations.
12 Average rates on new commitments for conventional first mortgages
on new homes in primary markets, unweighted and rounded to nearest
5 basis points, from Dept, of Housing and Urban Development.
13 Unless otherwise noted, rates of change are calculated from average
amounts outstanding in preceding month or quarter.

A4
1.11

Domestic Financial Statistics □ April 1979
FACTORS AFFECTING MEMBER BANK RESERVES
Millions o f dollars

Monthly averages of daily
figures

Weekly averages of daily figures for weeks ending-

Factors
1979

1979

Jan.

Feb.

Mar.p

Feb. 14

Feb. 21

Feb. 28

Mar. 7

Mar. 14

Mar. 21 p Mar. 28 *»

1 Reserve Bank credit outstanding. . . .

128,749

125,953

126,382

125,041

127,213

125,889

126,479

124,911

127,097

125,968

U.S. government securities 1..........

105,287

103,335

105,359

104,308

102.384

101.098

103,896

104,111

106,041

105.979

SUPPLYING RESERVE FUNDS

2
3
4

Bought outright.........................
Held under repurchase agree­
ments ..................................
Federal agency securities...............
Bought outright.........................
Held under repurchase agree­
ments ..................................

5

6
7

8

Acceptances...................................
Loans.............................................
Float..............................................
Other Federal Reserve assets. . . .

9
10
11

12 Gold stock........................................
13 Special Drawing Rights certificate

account.......................................
14 Treasury currency outstanding........

105,151
136
7,905

103,087
248

7,528

104,707

652
7,633

7,878

7,487

7,468

27

41

165

56
994
9,882
4,625

88

973
8,955
5,074

152
998
5,960
6,280

11,625

11,553

11,514

1,300
11,867

1,300
11,949

1,300
12,050

112,340
251

110,951
303

3,379
288
826

3,502
276
867

103,989

102.384

101.098

319
7,560

7,487

7.487

7.487

103,594

103,142
969

302
7,498

7,683

104,905

105.979

1,136
7,856

7.464

7.487

7,484

7,464

73

14

219

392

181
1,054
6,433
5,505

938
12,043
4,360

1,083
11,558
4,663

93
1,027
7,857
6,108

261
882
5,841
6,133

260
1,023
5,510
6,407

1,082
5,033
6,410

11,544

11,544

11,544

11,544

11,540

11,506

11,481

1,300
11,931

1,300
11,969

1,300
11,986

1,300
12,013

1,300
12,025

1,300
12,062

1,300
12,076

111,764
358

111,019
296

111,153
312

111,057
327

111,336
342

111,970
357

111,888
362

111,747
362

3,204
276
785

3,145
261
938

3,534
286
879

3,660
269
840

3,807
270
923

2,717
292
717

2,873
279
852

3,102
262
694

7.487

7,464

7.464

ABSORBING RESERVE FUNDS
15 Currency in circulation....................
16 Treasury cash holdings.....................
Deposits, other than member bank
reserves, with Federal Reserve
Banks:
17
Treasury.........................................
18
Foreign..........................................
19
Other..............................................
20 Other Federal Reserve liabilities and

capital........................................

4,522

4,371

4,434

4,164

4,447

4,721

4,224

4,309

4,440

4,611

Reserve Banks...........................

31,935

30,485

30,425

29,993

31,414

29,846

30,434

29,415

31,271

30,049

21 Member bank reserves with Federal

End-of-month figures

Wednesday figures

1979

1979

Jan.

Feb.

22 Reserve bank credit outstanding. . . .

125,406

125,778

23
24
25

101.279

103.486

SUPPLYING RESERVE FUNDS

U.S. government securities1..........

Bought outright.........................
Held under repurchase agree­
ments ..................................
Federal agency securities ..............
Bought outright.........................
Held under repurchase agree­
ments ..................................

26
27
28
29
30
31
32

Acceptances.............................
Loans.......................................
Float........................................
Other Federal Reserve assets.

33 Gold stock........................................ .
34 Special Drawing Rights certificate
account.......................................
35 Treasury currency outstanding........

101.279
7.507

7.507

103.486
7.487

7.487

Feb. 14

Feb. 21

Feb. 28

Mar. 7

Mar. 14

Mar. 21®

130,582

133,633

121,711

125,778

120,473

132,654

119,572

125,683

110,940

106,784

95.833

103.486

96.558

106,492

97.142

104.705

1,680

1,244

109,260
7,832

7,464

105,540
7,851

7,487

95.833
7.487

7.487

103.486
7.487

7.487

96.558

103,803

97.142

104.705

2,689
7.464

8,354

7.464

7,464

7.464

7.464

7.464

7.464

368

364

890

708
1,129
11,773
5,388

1,019
12,862
4,510

1,603
8,631
4,571

2,042
8,380
6,029

757
1,438
9,408
6,205

1,838
6,619
6,509

1,495
5,510
6,509

4,366
6,578
5,676

1,603
8,631
4,571

204
964
4,237
6,405

11,592

11,544

11,479

11,544

11,544

11,544

11,544

11,532

11,481

11,481

1,300
11,912

1,300
12,018

1,300
12,114

1,300
11,969

1,300
11,969

1,300
12,018

1,300
12,025

1,300
12,025

1,300
12,070

1,300
12,085

110,662
289

111,334
339

111,988
385

111,396
308

111,437
325

111,334
339

111,955
349

112,265
350

112,020
369

112,228
374

3,522
339
874

3,443
343
779

5,726
303
708

3,276
312
902

3,185
315
752

3,443
343
779

2,512
276
883

3,318
262
746

2,106
225
677

3,178
271
661

ABSORBING RESERVE FUNDS
36 Currency in circulation..............
37 Treasury cash holdings.....................

38
39

40
41
42

Deposits, other than member bank
reserves, with Federal Reserve
Banks:
Treasury..........................................
Foreign.......................................... .
Other 2.............................................
Other Federal Reserve liabilities and
capital......................... .............
Member bank reserves with Federal
Reserve Banks...........................

4,594

4,679

4,750

4,084

4,756

4,679

4,122

4,482

4,304

4,775

29,931

29,723

31,615

38,168

25,754

29,723

25,245

36,088

24,723

29,063

1 Includes securities loaned—fully guaranteed by U.S. government
securities pledged with Federal Reserve Banks—and excludes (if any)
securities sold and scheduled to be bought back under matched salepurchase transactions.




Note. For amounts of currency and coin held as reserves, see table
1.12.

Member Banks
1.12. RESERVES A N D BORROWINGS

A5

Member Banks

Millions of dollars
Monthly averages of daily figures
Reserve classification

All member banks
Reserves:
At Federal Reserve Banks..........
Currency and coin......................
Total held 1...................................
Required..................................
Excess1.....................................
Borrowings at Federal Reserve
Banks:2
6
Total............................................
7
Seasonal......................................

1
2
3
4
5

8
9
10
11

Large banks in New York City
Reserves held ...................................
Required......................................
Excess..........................................
Borrowings2....................................

12

Large banks in Chicago
Reserves held ...................................

14
15

Excess..........................................
Borrowings2....................................

16
17
18
19

Other large banks
Reserves held ...................................
Required......................................
Excess..........................................
Borrowings2....................................

20
21
22

All other banks

Reserves held ...................................

Required......................................
Excess..........................................

1978

1977

1979

Dec.

July

Aug.

Sept.

Oct.

Nov.

27,057
9,351

28,570
9,542

28,079
9,512

29,853
9,794

31,158
10,330

36,471

37,689

38,434

39,728

41,572

36,297
174

38,049
140

37,666

28,701
9,654

38,189

28,010
9,605

558
54

1,286
143

6,244

6,606

6,279
-3 5
48

6,581
25
129

1,593

1,708

13,993

14,553

1,613
-2 0
26

13,931
62
243

14,641

14,474
167
241

1,707
1
20

37,614
75

38,222
212

1,147
188

1,068
191

6,334

6,182

37,404
262

6,290
44
58
1,648

1,646
2
3

14,502

14,569
-1 6
499

14,423
79
417

15,322

15,182

15,192
130
638

15,045
137
669

Jan.

Feb.

Mar.?

31,935
11,093

30,485
10,074

43,167

40,703

40,336

30,425
9,775

39,423
305

41,447
125

42,865
302

40,494
209

1,261
221

722
185

874
134

994
112

973
114

998
120

6,428

6,682

7,808

6,995

6,825

6,251
-69
78

6,349
79
157

1,655

1,672

1,650
5
35

1,649
23
14

14,564

14,862

14,541
23
363

14,867
-5
408

15,288

15,472

15,172
116
592

Dec.

7,243
-123
99

7,690
118
117

1,791

1,907

2,011

1,765
26
4
15,547

15,447
100
194

15,708

15,357
115
682

7,120

6,658
24
48

15,553
155
476

1,900
7
10

16,446

16,342
104
276

16,099

15,962
137
489

2,010
1
23

16,942

16,923
19
269

16,406

16,242
164
585

6,976
19

40,060
276

6,845
-2 0
45

1,824

1,822

16,055

15,788

1,823
1
10

16,018
37
275
15,829

15,677
152
688

1,809
13
25

15,801
-1 3
216

15,667

15,605
62
712

Weekly averages of daily figures for weeks ending—
1979
Jan. 24
All member banks
Reserves:
At Federal Reserve Banks........
Currency and coin.....................
Total held *.................................
Required................................
Excess1...................................
Borrowings at Federal Reserve
Banks: 2
29
Total..........................................
30
Seasonal.....................................
24
25
26
27
28

31
32
33
34

Large banks in New York City
Reserves held .................................
Required....................................
Excess.........................................
Borrowings2..................................

35
36
37
38

Large banks in Chicago
Reserves held .................................
Required....................................
Excess.........................................
Borrowings2..................................

39
40
41
42

Other large banks
Reserves held .................................
Required....................................
Excess........................................
Borrowings2..................................

43
44
45
46

All other banks

Reserves held ..................... ...........

Required....................................
Excess........................................
Borrowings2..................................

31,673
11,168
42,983

Jan. 31

31,465
11,001

42,607

Feb. 7

Feb. 14

Feb. 21

Feb. 28

29,993
10,554

31,414
9,321

29,846
9,737

30,434
9,818

29,415
10,394

40,878

39,726

40,394

31,271
9,133

40,691

39,950

40,537

41,238
279

40,580
111

40,521
357

39,637
89

923

1,428

817
102

1,054

938

1,083

7,435

6,977

7,605

7,327

7,658
-5 3
14

7,345
-1 8
299

7,294
141

1,942

1,959

1.873

1,941
1
3
16,951

16,974
-2 3
198

16,485

16,394
91
708

1,950
9
90

110

1,027
108

882

7,126

6,441

6,844

6,887

7,051
75

1,850

1,832

19
16,230

1,827
5
2

16,149

16,102

16,113
36
415

16,006
96
196

16,435

15,979

15,715

15,818

16,227
208
699

15,853
126
620

16,745
141
340

15,546
169
626

39,849
101

123

7,064
-8 7

1,857
—7
13

1.873

40,190
204

123

16.218
12
178

16,886

Mar. 21? Mar. 28p

30,688
10,684

42,267
340
112

Mar. 14

41,517

42,967
16
105

Mar. 7

15,637
181
740

6,497
-5 6

1,741

1,735
6
4

15,737

6,849
-5
70

6,871
16
36

1,808

1,804

‘ 3

43

1,815
-1 1
2

15,992

15,672

1,805

15,736
1
309

15,948
44
267

15,807

15,750

15,669
138
770

109

15,588
162
647

15,688
-1 6
247
15,587

15,475
112
597

40,349
188
1,023

123

6,995

6,962
33
40

30,049
9,753
39,934

39,856
78
1 ,0 8 2

133

6,504

6,648
-1 4 4
55

1,863

1,740

15,941

15,595

1,836
27
69

15,902
39
153

15,689

15,649
40
761

1,783
-4 3

15,723
-128
213

15,691

15,702
-11
814

1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which
accordance with board policy, effective Nov. 19, 1975, of permitting
figures are preliminary, figures by class of bank do not add to total
transitional relief on a graduated basis over a 24-month period when a
because adjusted data by class are not available.
nonmember bank merges into an existing member bank, or when a
2 Based on closing figures.




A6
1.13

D om estic F in an cial Statistics □ A p r il 1979
F E D E R A L F U N D S T R A N S A C T IO N S M o n ey M ark et B anks
Millions o f dollars, except as noted

1979, week ending Wednesday
Jan. 31

Feb, 7

Feb. 14

Feb. 21

Feb. 28

Mar. 7

Mar. 14

Mar. 21

Mar. 28

Total, 46 banks
Basic reserve position
1 Excess reserves1...................................
Less:
2 Borrowings at Federal Reserve
Banks........................................
3 Net interbank federal funds
4
5

Equals: Net surplus, or deficit ( —)
Amount............................................

Percent o f average required reserves.

Interbank federal funds transactions
Gross transactions:
7 Sales..................................................
8 Two-way transactions2.......................
Net transactions:
9 Purchases of net buying banks.......
10 Sales of net selling banks...............
Related transactions with U.S.
government securities dealers
12 Borrowing from dealers4 ....................

46

150

4

104

1

14

23

-1 8 2

439

36

116

33

75

186

78

135

73

12,928

14,316

16,084

16,222

15,586

17,468

18,228

15,340

14,936

—13,321

-14,202

-16,197

-16,151

-15,660

-17,641

-18,283

-15,474

-15,191

72.6

79.4

91.7

92.3

93.8

102.3

106.9

89.2

89.8

20,855
7,927
6,370

22,071
7,755
5,671

23,568
7,483
5,908

23,903
7,681
6,202

22,337
6,751
5,799

24,736
7,268
5,952

25,264
7,036
5,564

23,226

7,887
5,727

22,687
7,751
5,702

14,485
1,558

16,400
2,084

17,660
1,575

17,701
1,480

16,538
952

18,784
1,316

19,700
1,472

17,499
2,159

16,985
2,050

4,697
1,336
3,361

3,249
1,277
1,971

3,074
1,372
1,702

4,491
1,117
3,374

4,654
1,516
3,138

3,899
1,077
2,822

3,723
1,486
2,237

3,557
2,097
1,461

3,242
1,284
1,958

3

40

-1 2

8 banksi in New York City
Basic reserve position
Less:
Borrowings at Federal Reserve
Banks........................................
16 Net interbank federal funds

15

17
18

Equals: Net surplus, or deficit ( —)
Amount............................................

Percent o f average required reserves.

Interbank federal funds transactions
Gross transactions:

22
23

Net transactions:
Purchases of net buying banks.......
Sales of net selling banks...............

Related transactions with U.S.
government securities dealers
24 Loans to dealers3.................................

92

-1 5

52

-5

-1 2
70

36

33

55

2,050

2,674

3,093

2,654

2,227

4,002

4,566

2,768

3,056

-2 ,3 4 4

-2 ,5 8 2

-3 ,1 0 8

-2 ,6 0 2

-2 ,2 3 2

-4 ,0 8 4

-4 ,6 0 0

-2 ,7 6 0

48.5

40.8

37.9

65.7

73.9

3,123

43.8

51.9

-2 1
272

35.4

39.2

3,674
1,623
1,449

4,305
1,631
1,141

4,433
1,340
1,340

4,397
1,744
1,260

3,616
1,389
1,262

5,064
1,062
1,062

5,574
1,008
1,008

4,613
1,845
1,295

4,456
1,399
1,399

2,225
175

3,164
490

3,093

3,138
485

2,354
128

4,002

4,566

3,317
549

3,056

2,987
377
2,610

1,843
425
1,419

1,616
525
1,091

2,638
400
2,238

2,855
444
2,411

2 ,14b
516
1,631

2,126
561
1,566

1,806
801
1,005

1,415
677
738

21

-3 9

-170

38 banks outside New York City
Basic reserve position
28

Less:
Borrowings at Federal Reserve

29

Net interbank federal funds

30
31

Equals: Net surplus, or deficit ( —)
Amount............................................

Percent o f average required reserves.

Interbank federal funds transactions
Gross transactions:
34 Two-way transactions2.......................
Net transactions:
35 Purchases of net buying banks.......
36 Sales of net selling banks................
Related transactions with U.S.
government securities dealers
37 Loans to dealers3................................

For notes see end o f table.




67

58

19

52

6

26

166

36

116

33

75

116

42

102

18

10,878

11,642

12,991

13,568

13,359

13,466

13,663

12,572

11,880

-10,977

-11,620

-13,088

-13,549

-13,427

-13,557

-13,684

-12,714

9 3.6

103.0

116.2

121.7

124.2

122.9

125.9

115.2

-12,068
110.8

17,182
6,304
4,921

17,766
6,124
4,529

19,135
6,143
4,568

19,505
5,937
4,942

18,721
5,362
4,537

19,672
6,206
4,890

19,690
6,028
4,556

18,614
6,042
4,432

18,231
6,352
4,302

12,260
1,383

13,236
1,594

14,567
1,575

14,563
996

14,184
825

14,782
1,316

15,134
1,472

14,182
1,610

13,929
2,050

1,710
959
751

1,406
853
553

1,458
847
611

1,853
716
1,137

1,799
1,072
727

1,753
561
1,192

1,597
925
671

1,751
1,296
456

1,826
607
1,219

Federal Funds
1.13

Al

C o n tin u e d

1979, week ending Wednesday

Type

Jan. 31

Feb. 14

Feb. 7

Feb. 21

Feb. 28

Mar. 7

Mar. 14

Mar. 21

Mar. 28

5 banks in City of Chicago
Basic reserve position
40 Excess reserves1.................................
Less:
41
Borrowings at Federal Reserve
Banks......................................
42 Net interbank federal funds
transactions.............................
Equals: Net surplus, or deficit ( —).
Amount..........................................

43
44

Percent o f average required reserves

Interbank federal funds transactions
Gross transactions:
45 Purchases........................................
46 Sales................................................
47 Two-way transactions2.....................
Net transactions:
48 Purchases of net buying banks.......
49
Sales of net selling banks..............
Related transactions with U.S.
government securities dealers
50 Loans to dealers3...............................
51 Borrowing from dealers4..................
52 Net loans..............................................

5

-1

5

7

5

4,597

5,079

6,003

5,995

5,258

-4,661

-5,251

17

2

5,617

5,629

5,262

4,947

-5,655

-5 ,6 3 6

-5 ,3 2 9

-4 ,9 5 0

310.3

297.2

43

80

-3

-8

69

-5 ,0 7 4

-6 ,0 0 4

-5 ,9 9 0

255.1

289.5

345 A

350.3

6,123
1,525
1,505

6,626
1,548
1,498

7,437
1,435
1,378

7,370
1,375
1,325

6,756
1,498
1,470

7,096
1,478
1,478

6,921
1,293
1,281

6,776
1,514
1,496

6,349
1,402
1,356

4,618
20

5,128
49

6,060
57

6,044
50

5,286
28

5,617

5,640
11

5,280
18

4,994
47

209
125
84

272
160
112

147
64
83

452
7
445

364
81
283

553
8
545

368
135
233

474
226
247

586
54
532

21

28

-41

-167

324.6

335.9

332.7

33 other banks
Basic reserve position
53 Excess reserves1..................................
Less:
54 Borrowings at Federal Reserve
Banks........................................
55 Net interbank federal funds
transactions..............................

86

36

116

33

75

74

42

34

18

6,280

6,563

6,989

7,573

,101

7,849

,034

7,310

6,933

Equals: Net surplus, or deficit ( —)
Amount............................................

-6,316

-6,546

-7,0 8 5

-7,559

,177

-7 ,9 0 2

-7,385

88.9

84.6

8,048

80.2

87.7

79.3

-7,118

56
57

Percent o f average required reserves,

Interbank federal funds transactions
Gross transactions:
58 Purchases..........................................
59 Sales..................................................
60 Two-way transactions2.......................
Net transactions:
61 Purchases of net buying banks.......
62 Sales of net selling banks...............
Related transactions with U.S.
government securities dealers
63 Loans to dealers3................................
64 Borrowing from dealers4 ..................
Net loans..............................................

51

20

53

63.8

6 8.7

11,059
4,779
3,417

11,139
4,576
3,031

11,697
4,709
3,191

12,136
4,563
3,617

11,965
3,864
3,067

12,576

A,121
3,411

12,769
4,735
3,275

11,838
4,528
2,936

11,882
4,949
2,947

7,642
1,362

8,108
1,545

8,507
1,518

8,519
946

8,898
797

9,165
1,316

9,495
1,461

8,902
1,591

8,935
2,003

1,501
834
667

1,133
692
441

1,311

1,401

1,435
992
444

1,201

1,229
790
438

1,278
1,069
209

1,241
553

74.4

783

528

1 Based on reserve balances, including adjustments to include waivers
of penalities for reserve deficiencies in accordance with changes in policy
of the Board of Governors effective Nov. 19, 1975.
2 Derived from averages for individual banks for entire week. Figure
for each bank indicates extent to which the bank’s average purchases
and sales are offsetting.
3 Federal funds loaned, net funds supplied to each dealer by clearing
banks, repurchase agreements (purchases from dealers subject to resale),
or other lending arrangements.




48

71 0
691

553
647

77.2

687

4
Federal funds borrowed, net funds acquired from each dealer by
clearing banks, reverse repurchase agreements (sales of securities to
dealers subject to repurchase), resale agreements, and borrowings secured
by U.S. government or other securities.

Note. Weekly averages of daily figures. For description of series, see
August 1964 Bulletin, pp. 944-53. Back data for 46 banks appear in
the board’s Annual Statistical Digest, 1971-1975, table 3.

A8
1 .1 4

D om estic F in an cial Statistics □ A p r il 1979
F E D E R A L R E SE R V E B A N K IN T E R E S T R A T E S
Per cent per annum

Current and previous levels
Loans to member banks

Federal Reserve
Bank

Loans to all others
under sec. 13, last par.*

Under s<5c. 10(b)2

Under secs. 13 and 13ai

Special rate 3

Regular rate
Rate on
3/31/79

Effective
date

Previous
rate

9%
9%
9%
9%
9 Vi
9%
9%
9%
9%
9%
9Vi
9%

11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78

8Vi
8%
8%
8%
8Vi
8%
8%
8%
8%
8%
8%
8%

Boston..................
New York............
Philadelphia.........
Cleveland.............
Richmond............
Atlanta.................
Chicago................
St. Louis...............
Minneapolis.........
Kansas City..........
Dallas...................
San Francisco. . . .

Rate on
3/31/79
10
10
10
10
10
10
10
10
10
10
10
10

Effective Previous
date
rate
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78

Rate on
3/31/79

Effective
date

Previous
rate

11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78

9%
9%
9%
9%
9%
9%
9%
9%
9%
9%
9%
9%

10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%

9
9
9
9
9
9
9
9
9
9
9
9

Rate on
3/31/79
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%
12%

Effective
date

Previous
rate

11/2/78
11/1/78
11/2/78
11/2/78
11/2/78
11/3/78
11/2/78
11/2/78
11/1/78
11/2/78
11/2/78
11/2/78

11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%
11%

Range of rates in recent years 5
Effective date

In effect Dec. 31, 1970.......
1971 _ ja n .

Feb.
July
Nov
Dec.

8...................
15...................
19...................
22...................
29...................
13...................
19...................
16...................
23....................
11...................
19...................
13...................
17....................
24....................

1973—Jan.
Feb.
Mar.
Apr.

15..................
26..................
2..................
23..................

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

5%

5%

514-5%
514
5-514
5-514
5
4%-5
434
434-5
5
434-5
434
4%-434
4%-434
4%

514
514
514
5
5
5
434
5
5
5
434
434
4%
4%

5
5-5%
5%
5%-534

5
5%
5%
5%

1973—May

4..................
1 1 ..................
18..................
June 1 1 ..................
15..................
July 2.................
Aug. 14..................
23.................

1974—Apr. 25.................
30.................
Dec. 9.................
16.................
6.................
10.................
24.................
Feb. 5.................
7 .................
Mar. 10.................
14.................
May
23.................

1975—Jan.

1 Discounts of eligible paper and advances secured by such paper or by
U.S. government obligations or any other obligations eligible for Federal
Reserve Bank purchase.
2 Advances secured to the satisfaction of the Federal Reserve Bank.
Advances secured by mortgages on 1- to 4-family residential property
are made at the section 13 rate.
3 Applicable to special advances described in section 201.2(e)(2) of
Regulation A.




Range
(or level)—
All F.R.
Banks

Effective date

5V4
5V4t
6-6Vi
6%
7
7-7%
7%

7%-8

8
m

7%-8
714-734

7K-7K
IVa

6%-7%

6%
61^-63,4
6%
6-6%
6

F.R.
Bank
of
N.Y.

Effective date

Range
(or level)—
All F.R.
Banks

F.R.
Bank
of
N.Y.

s*

1976—Jan. 19..................
23..................
Nov. 22...............
26..................

5%-6
5%
514-5%
514

5%
5%
5%
5%

1977—Aug. 30.................
31..................
Sept. 2.................
Oct. 26.................

514-534
514-5%
5%
6

5%
5%
5%
6

1978—Jan.

6- 6%
6%
6%-7
7
7-7%
714
734
8
8- 8%
8%
8%-9%
9%

6%
6%
7
7
7%
7%
734
8
8%
8%
9%
9%

9%

9%

!g
7

%
8
8

?8
?8
7%

6%
6%
614
614

6
6

9 .................
20.................
May 11.................
12.................
July 3.................
10.................
Aug. 21.................
Sept. 22.................
Oct. 16.................
20.................
Nov. 1.................
3.................

In effect Mar. 31, 1979. . .

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. government or any
agency thereof.
5 Rates under secs. 13 and 13a (as described above). For description
and earlier data, see the following publications of the Board of Governors:
Banking and Monetary Statistics, 1914-1941, Banking and Monetary
Statistics, 1941-1970, Annual Statistical Digest, 1971-75, 1972-76, and
1973-77.

Policy Instruments
1 .15

A9

M E M B E R B A N K R E SE R V E R E Q U IR E M E N T S 1
Percent o f deposits

Requirements in effect
March 31, 1979
Type of deposit, and deposit interval
in millions of dollars

Previous requirements

Percent

Effective date

Percent

Effective date

7
9%
1134

m

16 Va

12/30/76
12/30/76
12/30/76
12/30/76
12/30/76

10
12
13
16Vi

2/13/75
2/13/75
2/13/75
2/13/75
2/13/75

3

3/16/67

m

3/2/67

Net demand2
10-100.............................................................................................
100-400...........................................................................................
Over 400.........................................................................................

W a

Time and savings2-3-4
Times..............................................................................................
0-5 by maturity
30-179 d a y s............................................................................
180 days to 4 years.................................................................
4 years or more......................................................................
Over 5, by maturity
30-179 days.............................................................................
180 days to 4 years................................................................
4 years or more......................................................................

3
2%
1

3/16/67
1/8/76
10/30/75

3%
3
3

6
2%
1

12/12/74
1/8/76
10/30/75

5
3
3

3/2/67
3/16/67
3/16/67
10/1/70
12/12/74
12/12/74

Legal limits

Net demand
Reserve city banks................
Other banks..........................
Time...........................................
Borrowings from foreign banks
1 For changes in reserve requirements beginning 1963, see board’s

Annual Statistical Digest, 1971-1975 and for prior changes, see board’s
Annual Report for 1976, table 13.

2 (a) Requirement schedules are graduated, and each deposit interval
applies to that part of the deposits of each bank. Demand deposits
subject to reserve requirements are gross demand deposits minus cash
items in process of collection and demand balances due from domestic
banks.
(b) The Federal Reserve Act specifies different ranges of requirements
for reserve city banks and for other banks. Reserve cities are designated
under a criterion adopted effective Nov. 9, 1972, by which a bank having
net demand deposits of more than $400 million is considered to have the
character of business of a reserve city bank. The presence of the head
office of such a bank constitutes designation of that place as a reserve
city. Cities in which there are Federal Reserve Banks or branches are also
reserve cities. Any banks having net demand deposits of $400 million or
less are considered to have the character of business of banks outside of
reserve cities and are permitted to maintain reserves at ratios set for banks
not in reserve cities. For details, see the board’s Regulation D.
(c) Effective August 24, 1978, the Regulation M reserve requirements




Minimum

Maximum

10
7
3
0

22
14
10
22

on net balances due from domestic banks to their foreign branches and
on deposits that foreign branches lend to U.S. residents were reduced to
zero from 4 percent and 1 percent, respectively. The Regulation D reserve
requirement on borrowings from unrelated banks abroad was also reduced
to zero from 4 percent.
(d) Effective with the reserve computation period beginning Nov. 16,
1978, domestic deposits of Edge Corporations are subject to the same
reserve requirements as deposits of member banks.
3 Negotiable order of withdrawal (NOW) accounts and time deposits
such as Christmas and vacation club accounts are subject to the same
requirements as savings deposits.
4 The average reserve requirement on savings and other time deposits
must be at least 3 percent, the minimum specified by law.
5 Effective November 2, 1978, a supplementary reserve requirement of
2 percent was imposed on time deposits of $100,000 or more, obligations
of affiliates, and ineligible acceptances.
N ote. Required reserves must be held in the form of deposits with
Federal Reserve Banks or vault cash.

A10

D o m estic F in an cial Statistics □ A p r il 1979

1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions
Percent per annum
Commercial banks

In effect Mar. 31, 1979

Type and maturity of deposit

Percent

1 Savings......................................................
2 Negotiable order of withdrawal
accounts1.......................................
3 Money market time deposits of less
than $100,0002...............................
Time (multiple- and single-maturity
unless otherwise indicated)3
30-89 days
4
Multiple-maturity.............................
5
Single-maturity.................................
6
7

90 days to 1 year
Multiple-maturity........................... .
Single-maturity................................ . }

7/1/73

4%
(10)

1/21/70

1/1/74
(9)

(9)

(9)

7/1/73 J
I

4V4

*
5%

7/1/73

1 to 2 years4........................................ .
2 to 2% years4.................................... . }■ 6
2% to 4 years4.................................... .
6 V2

11
12
13

4 to 6 years5........................................
6 to 8 years5........................................
8 years or more5.................................

14

Issued to governmental units (all
maturities)....................................
Individual retirement accounts and
Keogh (H.R. 10) plans 6..............

7/1/73 J
\
7/1/73

5

{

’
5%
5%
5V4

Previous maximum

Percent

Effective
date

5%

(7)

5

5

1/1/74

( 10)

(9)

(9)

(9)

1/21/70
9/26/66 }

( 10)

7/20/66
9/26/66 }

45*/4

(7)

1/21/70
1/21/70 }
1/21/70

6%

(7)
(7)

Percent

Effective
date
(8)

(9)

( 10)

ey4

5%

1/21/70

J

53/4

1

I

1/21/70
1/21/70
1/21/70

m

11/1/73

11/1/73
12/23/74
6/1/78

11/1/73
12/23/74
6/1/78

(“ )
7V4
(i°)

11/1/73

8

6/1/78

7V4

12/23/74

8

6/1/78

7%

12/23/74

8

6/1/78

7Va

7/6/77

8

6/1/78

7Va

7/6/77

71/4

7%
73/4

1 For authorized states only. Federally insured commercial banks,
savings and loan associations, cooperative banks, and mutual savings
banks in Massachusetts and New Hampshire were first permitted to offer
negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974.
Authorization to issue NOW accounts was extended to similar institutions
throughout New England on Feb. 27, 1976, and in New York State on
Nov. 10, 1978.
2 Must have a maturity of exactly 26 weeks and a minimum denomina­
tion of $10,000, and must be nonnegotiable.
3 For exceptions with respect to certain foreign time deposits see the
F ederal Reserve Bulletin for October 1962 (p. 1279), August 1965 (p.
1094), and February 1968 (p. 167).
4 A minimum of $1,000 is required for savings and loan associations,
except in areas where mutual savings banks permit lower minimum de­
nominations. This restriction was removed for deposits maturing in less
than 1 year, effective Nov. 1, 1973.
5 $1,000 minimum except for deposits representing funds contributed
to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es­
tablished pursuant to the Internal Revenue Code. The $1,000 minimum
requirement was removed for such accounts in December 1975 and No­
vember 1976, respectively.
6 3-year minimum maturity.
7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and
loan associations.
8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and
loan associations.
9 Commercial banks, savings and loan associations, and mutual savings
banks were authorized to offer money market time deposits effective
June 1, 1978. The ceiling rate for commercial banks is the discount rate
on most recently issued 6-month U.S. Treasury bills. Until March 15,
1979, the ceiling rate for savings and loan associations and mutual savings
banks was % percentage point higher than the rate for commercial banks.
Beginning March 15, 1979, the % percentage point interest differential
is removed when the 6-month Treasury bill rate is 9 percent or more.
The full differential is in effect when the 6-month bill rate is 8% percent
or less. Thrift institutions may pay a maximum 9 percent when the 6-month




Effective
date

Percent

5

8
9
10

15

In effect Mar. 31, 1979

Previous maximum

5

(9)

}

Effective
date

Savings and loan associations and
mutual savings banks

7'h

73/4
8

(10)

bill rate is between 8% and 9 percent. Also effective March 15, 1979,
interest compounding was prohibited on money market time deposits
at all offering institutions. The most recent rates and effective dates are
as follows:
Mar. 1
Banks.........
Thrifts........

9.498
9.748

Mar. 8
9.415 }
9.665

Mar. 15

Mar. 22

Mar. 29

9.457

9.483

9.437

10 No separate account category.
11 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for
certificates maturing in 4 years or more with minimum denominations
of $1,000; however, the amount of such certificates that an institution
could issue was limited to 5 percent of its total time and savings deposits.
Sales in excess of that amount, as well as certificates of less than $1,000,
were limited to the 6 Vi percent ceiling on time deposits maturing in 2Vi
years or more.
Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing
in 4 years or more with minimum denominations of $ 1,000. There is no
limitation on the amount of these certificates that banks can issue.
Note. Maximum rates that can be paid by federally insured commer­
cial banks, mutual savings banks, and savings and loan associations are
established by the Board of Governors of the Federal Reserve System,
the Board of Directors of the Federal Deposit Insurance Corporation,
and the Federal Home Loan Bank Board under the provisions of 12
CFR 217, 329, and 526, respectively. The maximum rates on time de­
posits in denominations of $100,000 or more were suspended in mid1973. For information regarding previous interest rate ceilings on all
types of accounts, see earlier issues of the Federal Reserve Bulletin,
the Federal Home Loan Bank Board Journal, and the Annual Report
of the Federal Deposit Insurance Corporation.

Policy Instruments
1.1 7

A ll

F E D E R A L R E SE R V E O P E N M A R K E T T R A N S A C T IO N S
Millions o f dollars

Type of transaction

1976

1977

1978

1978
Aug.

1979

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

972
689
0

2,635
0
0

1,978
2,148
0

2,039
3,587
603

0
2,751
0

0
3,758
500

0
228
400

1,184
3,017
171
0
0
0
4,499 -5 ,1 7 0 -1 ,5 4 4
0
0
2,500

168
0
563
0

73
0
-385
0

139
0
-778
0

0
0
705
0

0
0
-673
0

48
0
-3 0
0

0
0
673

426
0
2,205

U.S. GOVERNMENT SECURITIES
Outright transactions (excluding matched salepurchase transactions)
1
2
3

Treasury bills:
Gross purchases...........................................
Gross sales....................................................
Redemptions.................................................

14,343
8,462
2 5,017

4
5
6
7

Others within 1 year:1
Gross purchases...........................................
Gross sales....................................................
Exchange, or maturity shift.........................
Redemptions................................................

472
0
792
0

8
9
10

1 to 5 years:
Gross purchases...........................................
Gross sales....................................................
Exchange, or maturity shift.........................

11
12
13

5 to 10 years:
Gross purchases...........................................
Gross sales....................................................
Exchange, or maturity shift.........................

1,048
0
1,572

14
15
16

Over 10 years:
Gross purchases...........................................
Gross sales....................................................
Exchange, or maturity shift.........................

17
18
19

13,738
7,241
2,136

2 3,202
2,833
177
0
-2 ,5 8 8 -6 ,6 4 9

16,628
13,725
2,033

4,188
0
-178

424
0
-4 9 0

350
0
-563

507
0
385

628
0
-6 5 7

0
0
-705

758
0
584

1,526
0
2,803

238
0
1,434

110
0
0

87
0
0

163
0
835

0
0
0

134
0
0
0
0 -2 ,9 7 5

642
0
225

553
0
1,565

1,063
0
2,545

113
0
600

122
0
0

139
0
0

108
0
600

0
0
0

0
0
0

93
0
800

All maturities:1
Gross purchases........................................... 2 19,707
Gross sales....................................................
8,639
Redemptions................................................
2 5,017

20,898
7,241
4,636

24,591
13,725
2,033

1,919
689
0

3,386
0
0

2,785
2,148
0

3,075
3,587
603

0
2,751
0

0
3,758
500

700
228
400

20
21

Matched sale-purchase transactions
Gross sales........................................................
Gross purchases...............................................

196,078 425,214 511,126
196,579 423,841 510,854

29,162
29,641

33,346
33,130

35,112
36,106

40,785
40,546

52,661
51,586

22
23

Repurchase agreements
Gross purchases...............................................
Gross sales........................................................

232,891 178,683 151,618
230,355 180,535 152,436

16,286
15,140

10,724
10,353

18,976
20,565

7,719
8,383

8,133
7,049

3,117
4,201

6,931
6,931

43 -2 ,0 1 7

-2 ,7 4 3

-9 ,2 8 3

2,207

24 Net change in U.S. government securities........

9,087

5,798

7,743

2,854

3,540

64,691 56,291
60,750 58,426

FEDERAL AGENCY OBLIGATIONS
Outright transactions:
Gross purchases...............................................
Gross sales........................................................
Redemptions....................................................
Repurchase agreements:
28 Gross purchases...............................................
29 Gross sales........................................................

891
0
169

1,433
0
223

301
173
235

0
173
13

0
0
28

0
0
12

0
0
39

0
0
3

0
379
10

*

10,520
10,360

13,811
13,638

40,567
40,885

3,080
3,032

3,877
3,348

6.675
7,196

2,544
2,670

4,307
4,174

713
846

1,152
1,152

30 Net change in federal agency obligations.........

882

1,383

-426

-138

501

-533

-165

130

-522

-2 0

31 Outright transactions, net...................................
32 Repurchase agreements, net...............................

-545
410

-196
159

0
-366

0
28

0
419

0
-479

0
-2 3 6

0
587

0
-587

0
0

33 Net change in bankers acceptances....................

-135

-3 7

-366

28

419

-479

-236

587

-5 8 7

0

34 Total net change in System Open Market
Account.........................................................

9,833

7,143

6,951

2,744

4,460

-969

-2 ,4 1 9

-2 ,0 2 6

-10,392

2,187

25
26
27

0
20

BANKERS ACCEPTANCES

1 Both gross purchases and redemptions include special certificates
created when the Treasury borrows directly from the Federal Reserve,
as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977,
2,500.
2 In 1975, the system obtained $421 million of 2-year Treasury notes
in exchange for maturing bills. In 1976 there was a similar transaction




amounting to $189 million. Acquisition of these notes is treated as a
purchase; the run-off of bills, as a redemption.
N ote. Sales, redemptions, and negative figures reduce holdings of
the System Open Market Account; all other figures increase such holdings.
Details may not add to totals because of rounding.

A12

D om estic F in an cial Statistics □ A p r il 1979

1.18 FEDERAL RESERVE BANKS

Condition and F.R. Note Statements

Millions of dollars

Account
Feb. 28

Mar. 7

Wednesday

End of month

1979

1979

Mar. 14

Mar. 21^

Mar. 28»

Jan.

Feb.

Mar.p

Consolidated condition statement
ASSETS
1 Gold certificate account.........................................
2 Special Drawing Rights certificate account.........
3
Loans:
4
Member bank borrowings.................................
Other....................................................................
5
Acceptances:
Bought outright..................................................
6
Held under repurchase agreements...................
7
Federal agency obligations:
8
Held under repurchase agreements...................
9

10
11
12
13
14
15
16

U.S. government securities
Bought outright:
Bills..................................................................
Certificates—Special.......................................
Other.........................................
Notes................................................................
Total i ...............................................................

11,544
1,300

11,544
1,300

11,532
1,300

11,481
1,300

11,481
1,300

11,592
1,300

11,544
1,300

11,479
1,300

344

352

368

369

380

316

344

395

1,603
0

2,042
0

1,438
0

1,838
0

1,495
0

4,366
0

1,603
0

964
0

0
0

0
0

0
757

0
0

0
0

0
0

0
0

0
204

7,487
0

7,464
0

7,464
890

7,464
0

7,464
0

7,507
0

7,487
0

7,464
368

35,467
0
0
54,662
13,357
103,486
0

28,539
0
0
54,662
13,357
96,558
0

35,784
0
0
54,662
13,357
103,803
2,689

29,123
0
0
54,662
13,357
97,142
0

36,686
0
0
54,662
13,357
104,705
0

33,959
0
0
54,855
12,465
101,279
0

35,467
0
0
54,662
13,357
103,486
0

38,641
2,600
0
54,662
13,357
109,260
1,680

17

103,486

96,558

106,492

97,142

104,705

101,279

103,486

110,940

18 Total loans and securities.......................................

112,576

106,064

117,041

106,444

113,664

113,152

112,576

119,940

19
20 Bank premises........................................................
Other assets:
21
Denominated in foreign currencies2.................
22

15,229
395

14,704
395

16,080
395

13,335
397

11,529
396

12,803
395

15,229
395

10.171
396

2,266
1,910

3,672
1,962

3,717
2,093

3,769
2,343

3,774
2,339

2,528
2,753

2,266
1,910

3,754
2,255

23 Total assets........................... ..................................

145,564

139,993

152,526

139,438

144,863

144,839

145,564

149,690

24 Federal Reserve notes..............................................
Deposits:
25
Member bank reserves. .....................................
U.S. Treasury—General account.....................
26
27
Foreign................................................................
28

99,999

100,631

100,958

100,687

100,896

99,354

99,999

100,654

29,723
3,443
343
779

25,245
2,512
276
883

36,088
3,318
262
746

24,723
2,106
225
677

29,063
3,178
271
661

29,931
3,522
339
874

29,723
3,443
343
779

31,615
5,726
303
708

29 Total deposits..........................................................

34,288

28,916

40,414

27,731

33,173

34,666

34,288

38,352

30 Deferred availability cash items...........................
31 Other liabilities and accrued dividends3..............

6,598
1,859

6,324
1,774

6,672
1,947

6,716
1,601

6,019
1,902

6,225
1,685

6,598
1,859

5,934
1,795

142,744

137,645

149,991

136,735

141,990

141,930

142,744

146,735

33 Capital paid in................. ......................................
34
35 Other capital accounts.........................................

1,088
1,078
654

1,089
1,078
181

1,109
1,078
348

1,109
1,078
516

1,110
1,078
685

1,085
1,078
746

1,088
1,078
654

1,113
1,078
764

36 Total liabilities and capital accounts.....................

145,564

139,993

152,526

139,438

144,863

144,839

145,564

149,690

37 Memo: Marketable U.S. govt, securities held in
custody for foreign and inti, account..........

94,611

94,531

92,922

92,591

90,623

95,762

94,611

89,184

LIABILITIES

32
CAPITAL ACCOUNTS

Federal Reserve note statement
38
39
40
41
42

Collateral held against notes outstanding:
Gold certificate account.....................................
Special Drawing Rights certificate account... .
U.S. government securities...............................

43

113,160

108,866

113,269

113,627

114,098

113,618

113,160

114,135

11,544
1,300
1,424
98,892

11,544
1,300
1,838
94,184

11,532
1,300
1,193
99,244

11,481
1,300
1,549
99,297

11,481
1,300
1,225
100,092

11,592
1,300
2,726
98,000

11,544
1,300
1,424
98,892

11,479
1,300
845
100,511

113,160

108,866

113,269

113,627

114,098

113,618

113,160

114,135

2 Beginning December 29, 1978, such assets are revalued monthly
1 Includes securities loaned—fully guaranteed by U.S. govt, securities
pledged with Federal Reserve Banks—and excludes (if any) securities sold
at market exchange rates.
3 Includes exchange-translation account reflecting, beginning December
and scheduled to be bought back under matched sale-purchase trans­
29, 1978, the monthly revaluation at market exchange rates of foreignactions.
exchange commitments.




Reserve Banks
1.1 9

F E D E R A L R ESERV E B A N K S

A 13

M a tu r ity D is tr ib u t io n o f L o a n a n d S e c u r ity H o ld in g s

Millions o f dollars

Type and maturity
Feb. 28
1
2
3
4
6
7
8

End of month

1979

1979

Mar. 14

Mar. 21

Mar. 28

Jan. 31

Feb. 28

Mar. 31

Within 15 days.....................................................

1,604
1,577
27
0

2,041
2,004
37
0

1,436
1,374
62
0

1,838
1,763
75
0

1,495
1,463
32
0

4,364
4,334
30
0

1,604
1,577
27
0

964
905
59
0

Within 15 days.....................................................

0
0
0
0

0
0
0
0

757
757
0
0

0
0
0
0

0
0
0
0

0
0
0
0

0
0
0
0

204
204
0
0

103,486
3,084
16,546
25,864
34,549
11,875
11,568

96,558
2,681
9,563
26,663
34,208
11,875
11,568

106,492
5,668
16,660
26,513
34,208
11,875
11,568

97,142
4,550
8,503
26,437
34,209
11,875
11,568

104,705
4,998
16,550
25,506
34,208
11,875
11,568

101,279
3,961
14,369
25,980
31,577
14,717
10,675

103,486
3,084
16,546
25,864
34,549
11,875
11,568

110,940
7,663
20,031
25,595
34,208
11,875
11,568

7,487
114
344
1,098
3,553
1,568
810

7,464
40
395
1,098
3,553
1,568
810

8,354
890
578
994
3,509
1,573
810

7,464
25
553
994
3,509
1,573
810

7,464
25
553
994
3,509
1,573
810

7,507
16
507
1,188
3,475
1,511
810

7,487
114
344
1,098
3,553
1,568
810

7,832
393
553
994
3,509
1,573
810

10
11
12
13
14
15
17
18
19
20
21
22

Mar. 7

Wednesday

Within 15 days i ...................................................
16 days to 90 days...............................................
91 days to 1 year..................................................
Over 5 years to 10 years......................................
Over 10 years........................................................

1 Holdings under repurchase agreements are classified as maturing
within 15 days in accordance with maximum maturity of the agreements.

1.20 BANK DEBITS AND DEPOSIT TURNOVER
Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates.

Bank group, or type
of customer

1975

1976

1978

1977
Aug.

Sept.

Oct.

Nov.

Dec.

Debits to demand deposits 2 (seasonally adjusted)
1 All commercial banks...............
2 Major New York City banks..
3 Other banks...............................

25,028.5
9,670.7
15,357.8

29,180.4
11.467.2
17.713.2

34,322.8
13,860.6
20,462.2

42,819.1
16.435.0
26.384.1

41.896.6
15,500.0
26.396.6

42,942.5
15,437.8
27,504.7

42.941.5
15.673.6
27,267.9

42,307.5
15.100.2
27.207.3

446.0
66.8
379.1

438.0
61.4
376.6

145.1
559.8
101.8

141.6
535.9
100.5

2.0
5.8
1.8

2.0
5.4
1.8

Debits to savings deposits 3 (not seasonally adjusted)
4 All customers.............................

174.0
21.7
152.3

6 Others.........................................

434.6
58.5
376.1

424.4
62.0
362.4

467.6
67.2
400.4

Demand deposit turnover 2 (seasonally adjusted)
8 Major New York City banks. .
9 Other banks...............................

105.3
356.9
72.9

116.8
411.6
79.8

129.2
503.0
85.9

146.5
577.6
100.0

141.9
549.6
98.8

144.1
530.1
102.3

Savings deposit turnover 3 (not seasonally adjusted)
10 All customers.............................
11 Business 1...................................
12 Others.........................................
1 Represents corporations and other profit-seeking organizations (ex­
cluding commercial banks but including savings and loan associations,
mutual savings banks, credit unions, the Export-Import Bank, and
federally sponsored lending agencies).
2 Represents accounts of individuals, partnerships, and corporations,
and of states and political subdivisions.
3 Excludes negotiable order of withdrawal (NOW) accounts and
special club accounts, such as Christmas and vacation clubs.




1.6
4.1
1.5

2.0
5.2
1.8

1.9
5.4
1.7

2.1
5.8
1.9

N ote. Historical data—estimated for the period 1970 through June
1977, partly on the basis of the debits series for 233 SMSAs, which were
available through June 1977—are available from Publications Services,
Division of Administrative Services, Board of Governors of the Federal
Reserve System, Washington, D.D. 20551. Debits and turnover data
for savings deposits are not available prior to July 1977.

A 14
1.21

D o m estic Fin a n cia l Statistics □ A p r il 1979
MONEY STOCK MEASURES AND COMPONENTS
Billions of dollars, averages of daily figures

1975
Dec.

1976
Dec.

1977
Dec.

1978
Dec.

Item

1978
Sept.

Oct.

1979
Nov.

Dec.

Jan.

Feb.

361.5
r586.4
876.3
1,500.6
972.9
1,597.3

359.9
r582.3
875.4
rl , 504.1
975.9
rl , 604.6

358.8
578.9
877.0
1,510.0
979.2
1,612.1

Seasonally adjusted
MEASURES i
1
2
3
4

M-1......................................................
M-1 ..................................................
M-2......................................................
M-3......................................................

6 M-5......................................................

295.4
456.8
664.8
1,092.4
745.8
1,173.5

313.8
517.2
740.6
1,235.6
803.0
1,298.0

338.7
361.5
361.1
361.6
361.0
560.6
r586.4
589.4
r589.7
r587.2
809.4
876.3
866.2
870.9
874.3
1,374.3 1,500.6 1,474.7 1,485.5 1,493.8
883.1
972.9
969.7
954.8
959.6
5 M-4......................................................
1,448.0 1,597.3 1,563.2 1,574.1
1,589.2

COMPONENTS
Commercial bank deposits:
8 Demand..............................................

73.8

80.8

88.6

97.5

95.2

95.8

96.6

97.5

98.2

98.9

221.7

233.0

250.1

264.1

265.9

264.1

544.4

611.4

264.4

450.3

489.2

593.7

265.8

608.8

261.7

259.9

611.4

Savings............................................
Negotiable CDs2.............................
Other time.......................................

160.7
81.0
208.6

202.1
62.4
224.7

13 Nonbank thrift institutions3.............

427.7

495.0

10
11
12

219.7
73.7
251.0

222.0
96.6
292.8

225.5
88.5
279.6

564.9

624.3

608.5

597.9

225.2
88.6
284.1

614.6

223.4
95.4
289.9

619.5

222.0
96.6
292.8

219.6
100.5
295.9

616.0

620.4

624.3

r628.7

632.9

371.6
365.7
r594.4
587.3
882.0
880.1
1,503.3 rl ,507.2
981.6
981.2
1,602.9 rl ,608.3

352.0
571.5
871.4
1,502.4
970.9
1,602.0

217.4
102.1
300.9

Not seasonally adjusted
MEASURES i
14
15
16
17

M-1......................................................
M-1 + ..................................................
M-2......................................................
M-3......................................................

19 M-5......................................................

303.9
463.6
670.0
1,095.0
753.5
1,178.4

322.6
524.2
745.8
1,238.3
810.0
1,302.6

371.6
359.0
363.0
348.2
361.4
568.0
r585.3
r594.4
r587.8
r-587.4
882.0
861.7
814.9
868.2
871.6
1,377.2 1,503.3 1,469.2 1,481.6 1,487.8
952.0
959.0
968.0
890.8
981.6
18 M-4......................................................
1,453.2 rl ,602.0 1,559.5 1,572.4 1,584.2

COMPONENTS
20 Currency..............................................
Commercial bank deposits:
21 Demand................................................
Member...........................................
Domestic nonmember .................
24 Time and savings.................................
25 Savings............................................
26 Negotiable CDs2.............................
27 Other time.......................................
28 Other checkable deposits4..................
29 Nonbank thrift institutions3..............
30 U.S. goverment deposits (all com­
mercial banks).............................

75.1

82.1

90.1

99.1

94.9

95.6

97.2

99.1

97.4

97.6

228.8

240.5

258.1

272.5

177.5
76.2

182.9
85.6

264.1

265.8

265.7

272.5

268.3

254.4

487.4

542.6
111 .1

609.9

219.9
99.5
290.5

597.6

605.0

609.9

615.5

618.9

75.9
249.0

593.1
223.6
90.3
219.2

162.8
62.6
449.6

159.1
83.5
207.1

169.4
67.5

200.2
64.3
222.9

178.3
81.9

179.3
82.7

223.5
90.8
283.3

178.3
83.7

221.5
96.4
287.1

182.9
85.6

219.9
99.5
290.5

179.2
84.9

218.8
101.1
295.6

169.5
81.0

216.7
99.6
302.6

0.7
424.9

1.4
492.5

2.1
562.3

r2.9
621.3

2.8
607.5

r2.8
613.4

r2.9
616.2

r2.9
621.3

r621 .1

r2.8

2.8
631.1

4.1

4.4

5.1

10.2

6.2

4.3

8.0

10.2

12.0

8.3

1 Composition of the money stock measures is as follows:
M-1: Averages of daily figures for (1) demand deposits at commercial
banks other than domestic interbank and U.S. government, less cash items
in process of collection and Federal Reserve float; (2) foreign demand
balances at Federal Reserve Banks; and (3) currency outside the Treasury,
Federal Reserve Banks, and vaults of commercial banks.
M-1 + : M-1 plus savings deposits at commercial banks, NOW accounts
at banks and thrift institutions, credit union share draft accounts, and
demand deposits at mutual savings banks.
M2-: M-1 plus savings deposits, time deposits open account, and time
certificates of deposit (CDs) other than negotiable CDs of $100,000 or
more at large weekly reporting banks.
M-3: M-2 plus the average of the beginning- and end-of-month deposits

of mutual savings banks, savings and loan shares, and credit union shares
(nonbank thrift).
M-4: M-2 plus large negotiable CDs.
M-5: M-3 plus large negotiable CDs.
2 Negotiable time CDs issued in denominations of $100,000 or more
by large weekly reporting commercial banks.
3 Average of 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.
4 Includes NOW accounts at thrift institutions, credit union share
draft accounts, and demand deposits at mutual savings banks.
N ote. Latest monthly and weekly figures are available from the board’s
508 (H.6) release. Back data are available from the Banking Section,
Division of Research and Statistics.

NOTES TO TABLE 1.23:
1 Adjusted to exclude domestic commercial interbank loans.
2 Loans sold are those sold outright to a bank’s own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank’s 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 of banks
was also different. On the new basis, both “Total loans” and “Commerical and industrial loans” were reduced by about $100 million.
3 Data beginning June 30, 1974, include one large mutual savings
bank that merged with a nonmember commercial bank. As of that date
there were increases of about $500 million in loans, $100 million in
“Other” securities and $600 million in “Total loans and investments.”
As of Oct. 31, 1974, “Total loans and investments” of all commercial
banks were reduced by $1.5 billion in connection with the liquidation




of 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 of loan re­
classifications at another large bank.
4 Reclassification of loans reduced these loans by about $1.2 billion
as of Mar. 31, 1976.
5 Reclassification of loans at one large bank reduced these loans by
about $200 million as of Dec. 31, 1977.
N ote. Data are for last Wednesday of month except for June 30 and
Dec. 31; data are partly or wholly estimated except when June 30 and
Dec. 31 are call dates.

Monetary Aggregates
1 .2 2

A G G R E G A T E R E SE R V E S A N D D E P O S IT S

A 15

M em b er B an k s

Billions of dollars, averages of daily figures
1975
Dec.

Item

1976
Dec.

1978

1977
Dec.

July

Aug.

Sept.

1979

Oct.

Nov.

Dec.

Jan.

Feb.

Seasonally adjusted
1 Reserves1....................................................................
2 Nonborrowed.....................: ..................................
3 Required.................................................................
4 Monetary base........................................................
5 Deposits subject to reserve requirements2.................
6 Time and savings....................................................
Demand
7 Private.....................................................................
8 U.S. government....................................................

34.67
34.54
34.40
106.7
504.2
336.8

34.89
34.84
34.61
118.4
528.6
354.1

36.10
35.53
35.91
127.8
568.6
386.7

38.11
36.80
37.92
134.7
600.5
410.8

37.93
36.79
37.77
135.3
602.7
413.0

38.21
37.15
38.02
136.8
607.0
416.8

38.38
37.10
38.22
137.8
608.9
418.3

39.75
39.05
39.53
139.9
616.9
427.5

41.27 41.48
40.40 40.48
41.04 '41.26
142.4 143.4
616.7 621.1
429.4 433.5

40.75
39.78
40.54
143.3
619.7
436.1

164.5
2.9

171.5
3.0

178.5
3.5

186.1
3.6

186.5
3.3

186.2
4.0

187.2
3.5

187.0
2.3

185.1
2.3

185.6
1.9

181.9
1.8

Not seasonally adjusted
9 Monetary base........................................................
10 Deposits subject to reserve requirements2.................
11 Time and savings....................................................
Demand
12 Private.....................................................................
13 U.S. government....................................................

108.3
510.9
337.2

120.3
534.8
353.6

129.8
575.3
386.4

135.7
600.6
411.1

135.2
599.2
412.8

136.2
605.9
416.6

137.5
608.4
418.5

140.5
615.1
425.2

144.6
624.0
429.6

144.4
627.1
433.8

141.9
614.3
434.2

170.7
3.1

177.9
3.3

185.1
3.8

186.4
3.2

183.9
2.5

184.7
4.6

186.9
3.0

188.0
2.0

191.9
2.5

191.5
1.9

178.2
1.8

1 Series reflects actual reserve requirement percentages with no adjust­
ment to eliminate the effect of changes in Regulations D and M. There
are breaks in series because of changes in reserve requirements effective
Dec. 12, 1974; Feb. 13, May 22, and Oct. 30, 1975; Jan. 8 and Dec. 30,
1976. In addition, effective Jan. 1, 1976, statewide branching in New York
was instituted. The subsequent merger of a number of banks raised
required reserves because of higher reserve requirements on aggregate
deposits at these banks.

2 Includes total time and savings deposits and net demand deposits as
defined by Regulation D. Private demand deposits include all demand
deposits except those due to the U.S. govt., less cash items in process of
collection and demand balances due from domestic commercial banks.
Note. Back data and estimates of the impact on required reserves
and changes in reserve requirements are shown in Table 14 of the Board’s
Annual Statistical Digest, 1971-1975.

1.23 LOANS AND INVESTMENTS All Commercial Banks
Billions of dollars; last Wednesday of month except for June 30 and Dec. 31

Category

1974
Dec. 313

1975
Dec. 31

1976
Dec. 31

1977
Dec. 31

1978
July 26* Aug. 30* Sept. 27?

Oct. 25v

Nov. 29^ Dec. 31*

Seasonally adjusted
1 Loans and investments1......................
2 Including loans sold outright2. . . .

691.1
695.9

721.8
726.2

785.1
788.9

870.6
875.5

940.7
945.3

944.6
949.3

952.4
957.0

960.9
964.8

966.5
970.2

967.3
971.1

3
4
5
6

Loans:
Total................................................
Including loans sold outright2. ..
Commercial and industrial............
Including loans sold outright2. ..

500.2
505.0
183.5
186.2

496.9
501.3
176.2
178.7

538.9
542.7
4179.7
4182.1

617.0
621.9
5201.4
5204.2

675.1
679.7
220.8
223.1

680.2
684.9
222.8
225.2

687.3
691.9
224.6
226.9

696.8
700.7
227.0
228.9

706.8
710.5
228.9
230.8

709.0
712.8
228.9
230.7

7
8

Investments:
U.S. Treasury.................................
Other................................................

51.1
139.8

80.1
144.8

98.0
148.2

95.6
158.0

100.6
165.0

97.9
166.5

97.2
167.9

95.2
168.9

90.3
169.4

88.4
169.9

Not seasonally adjusted
9 Loans and investments1......................
10 Including loans sold outright2........

705.6
710.4

737.0
741.4

801.6
805.4

888.9
893.8

936.6
941.2

942.0
946.7

951.4
956.1

958.4
962.3

969.3
973.0

987.6
991.4

11
12
13
14

Loans:
Total1..............................................
Including loans sold outright2. . .
Commercial and industrial............
Including loans sold outright2. ..

510.7
515.5
186.8
189.5

507.4
511.8
179.3
181.8

550.2
554.0
4182.9
4185.3

629.9
634.8
5205.0
5207.8

675.6
680.2
220.9
232.2

681.0
685.7
221.7
224.1

688.6
693.3
223.9
226.2

696.6
700.5
226.5
228.4

707.2
710.9
228.9
230.8

723.9
727.7
233.0
234.8

15
16

Investments:
U.S. Treasury..................................
Other................................................

54.5
140.5

84.1
145.5

102.5
148.9

100.2
158.8

96.1
164.9

94.8
166.2

95.0
167.7

93.5
168.3

92.6
169.5

93.0
170.7

For notes see bottom o f opposite page.




A16

D o m estic Fin an c ia l Statistics □ A p r il 1979

1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series
Billions of dollars except for number of banks
1977
Account

Dec.

19783
Mar.

Apr.

May

June

JulyP

Aug.P

Sept.P

Oct.p

N ov.p

Dec.P

All commercial
1 Loans and investments...............
2
Loans, gross...........................
Investments:
U.S. Treasury securities. .
3
4
Other...................................

939.1
680.1

939.7
680.4

953.0
688.7

974.4
712.4

985.0
722.1

980.6
719.6

985.5
724.5

996.4 1,003.0 1,016.2 1,034.7
733.6
741.2
754.1
770.9

100.2
158.8

99.0
160.3

100.2
164.1

97.3
164.6

97.9
165.1

96.1
164.9

94.8
166.2

95.0
167.7

93.5
168.3

92.6
169.5

92.6
171.2

5 Cash assets.................................
6
Currency and coin.................
Reserves with Federal Reserve
7
Banks............................
8
Balances with banks............
9
Cash items in process of collection..

168.7
13.9

130.5
14.4

133.1
14.3

161.0
14.5

166.8
12.0

130.2
14.8

137.4
15.2

141.8
15.2

146.5
15.1

149.2
16.7

170.1
17.2

29.3
59.0
66.4

30.2
42.6
43.3

27.6
43.6
47.6

30.3
51.9
64.3

29.6
56.0
69.3

23.6
44.4
47.3

29.7
43.0
49.5

32.6
44.4
49.6

34.6
45.0
51.7

32.6
46.5
53.5

37.7
51.6
63.6

10 Total assets/total liabilities
capital i .................................
11

and

1,166.0 1,140.5 1,156.9 1,206.5 1,215.0 1,179.2 1,192.9 1,209.5 1,220.4 1,240.8 1,284.0
939.4

899.8

915.5

952.9

965.7

932.3

937.7

949.9

952.3

959.0

993.1

51.7
7.3
323.9

37.6
4.9
281.2

39.0
6.2
293.8

51.2
3.3
312.9

49.3
8.0
317.5

40.5
4.3
296.3

40.4
2.8
298.6

41.9
11.0
297.1

43.3
7.6
299.2

42.9
2.1
304.7

51.1
2.3
327.1

Other...................................

9.8
546.6

9.0
567.1

9.0
567.5

9.4
576.1

10.2
580.8

10.3
580.9

10.7
585.2

11.6
588.3

11.1
591.2

11.8
597.6

12.4
600.3

17 Borrowings.................................
18 Total capital accounts2..............

96.2
85.8

105.6
83.4

104.9
83.7

112.2
84.6

106.8
89.9

103.2
85.8

109.1
86.2

112.8
87.1

118.3
87.1

125.6
87.8

133.0
87.3

14,707

14,689

14,697

14,702

14,698

14,713

14,721

14,715

14,713

14,719

14,712

12
13
14
15
16

Demand:
Interbank..........................
U.S. government..............
Other.................................
Time:

19

Member
20 Loans and investments...............
21
Loans, gross...........................
Investments:
22
U.S. Treasury securities. ..
23
Other...................................

675.5
494.9

668.6
490.5

676.8
495.3

693.8
514.3

699.7
519.6

695.8
517.6

698.9
520.3

706.9
527.0

713.4
533.9

724.3
544.6

739.5
558.3

70.4
110.1

68.2
109.9

68.8
112.7

66.9
112.7

67.4
112.7

65.7
112.5

65.3
113.3

65.4
114.5

64.1
115.3

63.5
116.2

63.6
117.6

24 Cash assets, total.......................
Currency and coin., ..............
25
26
Reserves with Federal Reserve
Banks..............................
27
Balances with banks..............
28
Cash items in process of collection..

134.4
10.4

104.8
10.6

106.5
10.5

130.7
10.6

133.8
8.7

104.2
10.8

111.2
11.1

115.4
11.1

118.6
11.1

121.3
12.3

140.2
12.7

29.3
30.8
63.9

30.2
22.9
41.2

27.6
22.7
45.7

30.3
28.1
61.7

29.6
29.1
66.5

23.6
24.3
45.4

29.7
22.9
47.6

32.6
24.0
47.7

34.6
23.2
49.7

32.6
25.1
51.4

37.7
28.6
61.2

861.8

833.2

29 Total' assets/total

liabilities

and

843.3

884.7

888.7

857.3

868.5

882.2

891.2

908.5

945.2

30 Deposits......................................
Demand:
31
Interbank............................
32
33
Other..................................
Time:
34
Interbank............................
Other..................................
35

683.5

645.1

655.1

686.7

694.3

666.1

670.6

679.6

682.5

688.6

716.3

48.0
5.4
239.4

34.7
3.7
205.1

36.0
4.5
213.4

47.5
2.2
229.1

45.5
5.6
231.6

37.3
3.1
214.6

37.2
1.9
217.0

38.6
8.1
215.6

39.9
5.7
217.0

39.5
1.5
221.3

47.3
1.6
237.9

7.8
382.9

7.0
394.7

6.9
394.3

7.3
400.5

8.1
403.4

8.2
402.9

8.6
405.9

9.4
407.8

9.0
411.0

9.7
416.7

10.2
419.3

36
37 Total capital accounts2.............

84.9
63.7

91.8
62.4

91.1
62.7

96.9
63.3

92.1
66.1

88.0
64.2

93.9
64.5

97.2
65.1

101.4
65.2

108.1
65.7

115.9
65.5

38 Memo: Number of banks.......

5,669

5,654

5,645

5,638

5,622

5,613

5,610

5,593

5,585

5,586

5,565

1 Includes items not shown separately.
Effective Mar. 31, 1976, some of the item “reserve for loan losses”
and all of the item “unearned income on loans” are no longer reported
as liabilities. As of that date the “valuation” portion of “reserve for
loan losses” and the “unearned income on loans” have been netted
against “other assets,” and against “total assets” as well.
Total liabilities continue to include the deferred income tax portion of
“reserve for loan losses.”
2 Effective Mar. 31, 1976, includes “reserves for securities” and the
contingency portion (which is small) of “reserve for loan losses.”
3 Figures partly estimated except on call dates.




N ote. Figures include all bank-premises subsidiaries and other sig­
nificant majority-owned domestic subsidiaries.
Commercial banks: All such banks in the United States, including
member and nonmember banks, stock savings banks, nondeposit trust
companies, and U.S. branches of foreign banks.
Member banks: The following numbers of noninsured trust companies
that are members of the Federal Reserve System are excluded from mem­
ber banks in tables 1.24 and 1.25 and are included with noninsured banks
in table 1.25: 1976—December, 11; 1978—January, 12.

Commercial Banks
1.2 5

C O M M E R C I A L B A N K A S S E T S A N D L IA B I L I T I E S
Millions o f dollars, except for number o f banks

Account

1976

C a ll-D a t e S er ie s

1977
June 30

Dec. 31

Dec. 31

1978

1976

June 30

Dec. 31

Total insured
1 Loans and investments, gross.................................
Loans
Gross................................................................
Net...................................................................
Investments
4
U.S. Treasury securities.................................
5
Other................................................................
6 Cash assets..............................................................
2
3

7 Total assets/total liabilities1...................................

A 17

1977
June 30

1978

Dec. 31

June 30

National (all insured)

827,696

854,733

914,779

956,431

476,610

488,240

523,000

542,218

578,734
560,077

601,122
581,143

657,509
636,318

695,443
672,207

340,691
329,971

351,311
339,955

384,722
372,702

403,812
390,630

101,461
147,500
129,562

100,568
153,042
130,726

99,333
157,936
159,264

97,001
163,986
157,393

55,727
80,191
76,072

53,345
83,583
74,641

52,244
86,033
92,050

50,519
87,886
90,728

583,304

599,743

651,360

671,166

825,003

847,372

922,657

945,874

469,377

476,381

520,167

526,932

3,022
44,064
285,200

2,817
44,965
284,544

7,310
49,843
319,873

7,956
47,203
312,707

1,676
23,149
163,346

1,632
22,876
161,358

4,172
25,646
181,821

4,483
22,416
176,025

8,248
484,467

7,721
507,324

8,731
536,899

8,987
569,020

4,907
276,296

4,599
285,915

5,730
302,795

5,791
318,215

14 Borrowings..............................................................
15 Total capital accounts............................................

75,291
72,061

81,137
75,502

89,339
79,082

98,351
83,074

54,421
41,319

57,283
43,142

63,218
44,994

68,948
47,019

16 Memo: Number of banks.....................................

14,397

14,425

14,397

14,381

4,735

4,701

4,654

4,616

8 Deposits...................................................................
Demand
9
U.S. government............................................
10
Interbank........................................................
11
Other................................................................
Time
12
Interbank........................................................
13
Other................................................................

1,003,970 1,040,945 1,129,712 1,172,772

Insured nonmember

State member (all insured)
17 Loans and investments, gross.................................
Loans
Gross................................................................
Net...................................................................
Investments
20
U.S. Treasury securities.................................
21
Other................................................................
22 Cash assets..............................................................
18
19

144,000

144,597

152,514

157,464

207,085

221,896

239,265

256,749

102,277
99,474

102,117
99,173

110,243
107,205

115,736
112,470

135,766
130,630

147,694
142,015

162,543
156,411

175,894
169,106

18,849
22,874
32,859

19,296
23,183
35,918

18,179
24,091
42,305

16,886
24,841
43,057

26,884
44,434
20,631

27,926
46,275
20,166

28,909
47,812
24,908

29,595
51,259
23,606

23 Total assets/total liabilities1...................................

189,579

195,452

210,442

217,384

231,086

245,748

267,910

284,221

24 Deposits...................................................................
Demand
25
26
Interbank.........................................................
27
Other................................................................
Time
28
Interbank.........................................................
29
Other................................................................

149,491

152,472

163,436

167,403

206,134

218,519

239,053

251,539

429
19,295
52,204

371
20,568
52,570

1,241
22,346
57,605

1,158
23,117
55,550

917
1,619
69,648

813
1,520
70,615

1,896
1,849
80,445

2,315
1,669
81,131

2,384
75,178

2,134
76,827

2,026
80,216

2,275
85,301

956
132,993

988
144,581

973
153,887

920
165,502

30 Borrowings..............................................................
31 Total capital accounts.............................................

17,310
13,199

19,697
13,441

21,736
14,182

23,167
14,670

3,559
17,542

4,155
18,919

4,384
19,905

6,235
21,384

32 Memo: Number of banks.....................................

1,023

1,019

1,014

1,005

8,639

8,705

8,729

8,760

Total nonmember

Noninsured nonmember
33 Loans and investments, gross.................................
Loans
34
Gross................................................................
35
Net...................................................................
Investments
36
U.S. Treasury securities.................................
37
Other................................................................
38 Cash assets..............................................................

18,819

22,940

24,415

28,699

225,904

244,837

263,681

285,448

16,336
16,209

20,865
20,679

22,686
22,484

26,747
26,548

152,103
146,840

168,559
162,694

185,230
178,896

202,641
195,655

1,054
1,428
6,496

993
1,081
8,330

879
849
9,458

869
1,082
9,360

27,938
45,863
27,127

28,919
47,357
28,497

29,788
48,662
34,367

30,465
52,341
32,967

39 Total assets/total liabilities1...................................

26,790

33,390

36,433

42,279

257,877

279,139

304,343

326,501

40

13,325

14,658

16,844

19,924

219,460

233,177

255,898

271,463

4
1,277
3,236

8
1,504
3,588

10
1,868
4,073

8
2,067
4,814

921
2,896
72,884

822
3,025
74,203

1,907
3,718
84,518

2,323
3,736
85,946

1,041
7,766

1,164
8,392

1,089
9,802

1,203
11,831

1,997
140,760

2,152
152,974

2,063
163,690

2,123
177,334

46 Borrowings..............................................................
47 Total capital accounts............................................

4,842
818

7,056
893

6,908
917

8,413
962

8,401
18,360

11,212
19,812

11,293
20,823

14,649
22,346

48 Memo: Number of banks.....................................

275

293

310

317

8,914

8,998

9,039

9,077

41
42
43
44
45

Demand
Interbank........................................................
Time
Interbank........................................................

1 Includes items not shown separately.




For N ote see table 1.24.

A18

D o m estic F in an cial Statistics □ A p r il 1979

1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978
Millions of dollars, except for number of banks.
Member banks1
Asset account

Insured
commercial
banks

Large banks
Total

New York
City

City of
Chicago

Other
large

All other

Non­
member
banks1

1
2
3
4
5
6
7

Currency and coin....................................................................
Reserves with Federal Reserve Banks.....................................
Demand balances with banks in United States.....................
Other balances with banks in United States..........................
Balances with banks in foreign countries..............................
Cash items in process of collection.........................................

158,380
12,135
28,043
41,104
4,648
3,295
69,156

134,955
8,866
28,041
25,982
2,582
2,832
66,652

43,758
867
3,621
12,821
601
331
25,516

5,298
180
1,152
543
15
288
3,119

47,914
2,918
12,200
3,672
648
1,507
26,969

37,986
4,901
11,067
8,945
1,319
705
11,049

23,482
3,268
3
15,177
2,066
463
2,504

9
10
11
12
13

U.S. Treasury.............................................. ........... ................
Other U.S. government agencies............... .............................
States and political subdivisions..............................................
All other securities...................................................................
Unclassified total......................................................................

262,199
95,068
40,078
121,260
5,698
94

179,877
65,764
25,457
85,125
3,465
66

20,808
9,524
1,828
9,166
291

7,918
2,690
1,284
3,705
240

58,271
22,051
7,730
27,423
1,048
19

92,881
31,499
14,616
44,831
1,887
47

82,336
29,315
14,622
36,136
2,234
28

14
15
16
17
18
19

Trading-account securities ........................................................

U.S. Treasury.......................................................................
Other U.S. government agencies........................................
States and political subdivisions.........................................
All other trading account securities....................................

4,125
825
1,395
394
94

6,833

6,681

3,238

708

2,446

290

151

20
21
22
23
24

Bank investment portfolios ........................................................

255,366

92,591

82,185

U.S. Treasury........................................................................
Other U.S. government agencies........... ............................
States and political subdivisions.........................................
All other portfolio securities................................................

90,943
39,253
119,865
5,305

4,103
816
1,381
316
66

173,196

61,661
24,641
83,745
3,149

2,407
401
363
67

17,570

7,117
1,426
8,803
224

408
82
117
101
7,210

2,282
1,201
3,588
138

1,210
278
794
145
19

55,825

20,840
7,452
26,629
903

78
55
107
3
47

31,422
14,561
44,724
1,884

23
9
14
78
28

29,293
14,613
36,123
2,156

25 Federal Reserve stock and corporate stock...............................

1,656

1,403

311

111

507

475

253

26 Federal funds sold and securities resale agreement.....................
27 Commercial banks...................................................................
28 Brokers and dealers..................................................................
29 Others........................................................................................

41,258
34,256
4,259
2,743

31,999
25,272
4,119
2,608

3,290
1,987
821
482

1,784
1,294
396
94

16,498
12,274
2,361
1,863

10,427
9,717
541
169

9,365
9,090
140
135

30 Other loans, gross.........................................................................
31 Less: Unearned income on loans............................................
32
Reserves for loan loss....................................................
33 Other loans, net........................................................................

675,915
17,019
7,431
651,465

500,802
11,355
5,894
483,553

79,996
675
1,347
11,91A

26,172
107
341
25,724

190,565
3,765
2,256
184,544

204,069
6,809
1,949
195,311

175,113
5,664
1,537
167,912

203,386

138,730

10,241

2,938

52,687

72,863

64,656

34
35
36
37
38
39
40
41
42
43
44

Other loans, gross, by category
Real estate loans.......................................................................
Construction and land development...................................
Secured by farmland............................................................
Secured by residential properties........................................
1- to 4-family residences....................................................
FHA-insured or VA-guaranteed..................................
Conventional................................................................
Multifamily residences ......................................................
FHA-insured..................................................................
Conventional.................................................................
Secured by other properties................................................

45
46
47
48
49
50
51
52
53
54

Loans to financial institutions ..................................................

55
56
57
58
59
60
61
62
63
64
65
66
67

Loans to individuals.................................. ..............................
Installment loans...................................................................
Passenger automobiles......................................................
Residential repair and modernization.............................
Credit cards and related plans.........................................
Charge-account credit cards........................................
Check and revolving credit plans................................
Other retail consumer goods............................................
Mobile homes...............................................................
Other..............................................................................
Other installment loans....................................................
Single-payment loans to individuals...................................
All other loans..........................................................................

REITs and mortgage companies......... ..............................
Domestic commercial banks................. ..............................
Banks in foreign countries.................... ..............................
Other depositary institutions..............................................
Other financial institutions................... ..............................
Loans to security brokers and dealers....................................
Other loans to purchase or carry securities...........................
Loans to farmers—except real estate.....................................
Commercial and industrial loans............................................

25,621
8,418
117,176

111,674

7,503
104,171
5,502

19,100
3,655
81,370
77,422

6,500
70,922
3,948

2,598
23
5,362
4,617

685
34
1,559

1,460

508
4,109

44
1,417

746

99

34,252

1,665

1,554

2,502
39,068

1,003
33,249

27
72
660

88
1,350
11,786

92
1,573
19,901

59
1,495
17,566

37,072

34,843

12,434

4,342

15,137

2,930

2,228

2,066
966
3,464
290
5,649
6,465
410
168
39,633

801
165
268
76
3,033
1,324
276
150
13,290

4,616
1,206
2,820
785
5,710
2,846
1,860
3,781
67,833

110,974

7,100

2,562

40,320

90,568

5,405

1,711

60,993

33,640

49,811

8,574
3,362
7,359
1,579
16,198
11,042
4,280
28,054
213,123

8,162
2,618
7,187
1,411
15,465
10,834
3,532
15,296
171,815

161,599
131,571

58,908
8,526
21,938
17,900
4,038
19,689
9,642
10,047
22,510
30,027
17,360

37,494
5,543
19,333
16,037
3,296
13,296
6,667
6,629
14,902
20,406
14,778

956,579

696,833

680
281
635
261
1,073
199
985
11,196
51,059

412
744
171
167
733
207
747
12,758
41,309
50,624
41,003

421

179
249
1,302
1.694
3; 545

209
60
1,267
1,219
47
57
19
38
119
851
1,290

102,383

35,536

259,820

299,094

259,867

3,931
6,268
1,282
6,054
12,810

1,041
7,133
96
409
5,275

505
5,926
46
521
4,249

338,079

351,034

294,595

1,077
331
2,268
1,573
695

1,145
2,332
1,642
8,315
11,323

74 Total assets........................... ....................................................... 1,198,495

904,182

170,899

44,170




1,438

41,570

132
613
2,258

6,212
16,529
3,209
16,036
30,408

For notes see opposite page.

3,446
26,328

6,521
4,763
35,806

340
3,609
34,605

6,717
22,448
3,255
16,557
34,559

Direct lease financing...................................................................
Fixed assets—Buildings, furniture, real estate...........................
Investment in unconsolidated subsidiaries.................................
Customer acceptances outstanding.............................................
Other assets.. ...............................................................................

29,774

6,581
3,146
43,236

399
5,103
52,171

96
795
188
1,258
1,000

69
70
71
72
73

9,236
453
31,212

11,626
2,088
9,736
8,192
1,545
5,242
2,563
2,678
4,948
6,680
6,100

24,582
3,064
6,062
5,053
1,009
7,570
3,905
3,664
8,533
11,182
3,844

21,414
2,983
2,605
1,863
742
6,393
2,976
3,417
7,608
9,621
2,582

Commercial Banks
1 .2 6

A 19

C o n tin u e d

Member banks1
Liability or capital account

Insured
commercial
banks

Large banks
Total

New York
City

City of
Chicago

Other
large

All other

Non­
member
banks1

75 Demand deposits.........................................................................
76 Mutual savings banks............................................................
77 Other individuals, partnerships, and corporations.............
78 U.S. government....................................................................
79 States and political subdivisions............................................
80
81 Commercial banks in United States.....................................
82 Banks in foreign countries.....................................................
83 Certified and officers’ checks, etc..........................................

369,030
1,282
279,651
7,942
17,122
1,805
39,596
7,379
14,253

282,450
1,089
205,591
5,720
11,577
1,728
38,213
7,217
11,315

66,035
527
31,422
569
764
1,436
21,414
5,461
4,443

10,690
1
7,864
188
252
19
1,807
207
352

100,737
256
79,429
1,987
3,446
211
10,803
1,251
3,354

104,988
305
86,876
2,977
7,116
62
4,189
298
3,166

86,591
194
74,061
2,222
5,545
77
1,393
162
2,937

84 Time deposits..............................................................................
8*5
86 Mutual savings banks............................................................
87 Other individuals, partnerships, and corporations..............
88 U.S. government...................................................................
89 States and political subdivisions............................................
90 Foreign governments, central banks, etc..............................
91
Commercial banks in United States.....................................
92 Banks in foreign countries....................................................

368,562
79
399
292,120
864
59,087
6,672
7,961
1,381

266,496
66
392
210,439
689
40,010
6,450
7,289
1,161

38,086

15,954

177
29,209
61
1,952
3,780
2,077
829

40
12,074
40
1,554
1,145
999
103

98,525
1
148
76,333
356
16,483
1,401
3,585
219

113,931
65
27
92,824
232
20,020
124
629
9

102,066
13
7
81,680
175
19,077
222
672
220

93 Savings deposits..........................................................................
94 Individuals and nonprofit organizations...............................
95 Corporations and other profit organizations.......................
96 U.S. government....................................................................
97 States and political subdivisions............................................
98 All other.................................................................................

223,326
207,701
11,216
82
4,298
30

152,249
141,803
7,672
65
2,682
27

10,632
9,878
519
2
215
18

2,604
2,448
148
3
4
*

54,825
51,161
3,195
24
437
8

84,188
78,316
3,809
35
2,025
2

71,077
65,897
3,544
17
1,616
3

99 Total deposits.............................................................................

960,918

701,195

114,753

29,248

254,087

303,107

259,733

100 Federal funds purchased and securities sold under agreements
to repurchase.......................................................................
101 Commercial banks.................................................................
102 Brokers and dealers...............................................................
103 Others......................................................................................
104 Other liabilities for borrowed money.......................................
105 Mortgage indebtedness..............................................................
106 Bank acceptances outstanding..................................................
107 Other liabilities...........................................................................

91,981
42,174
12,787
37,020
8,738
1,767
16,661
27,124

85,582
39,607
11,849
34,126
8,352
1,455
16,140
23,883

21,149
6,991
2,130
12,028
3,631
234
8,398
8,860

8,777
5,235
1,616
1,926
306
27
1,260
1,525

41,799
21,609
6,381
13,809
3,191
701
6,070
9,020

13,857
5,773
1,722
6,362
1,225
491
412
4,477

6,398
2,566
939
2,894
386
316
521
3,494
270,849

1,107,188

836,607

157,026

41,144

314,868

323,569

109 Subordinated notes and debentures..........................................

5,767

4,401

1,001

79

2,033

1,287

1,366

110 Equity capital.............................................................................
I ll
Preferred stock .................................
....
112 Common stock.......................................................................
113 Surplus.....................................................................................
114 Undivided profits...................................................................
115 Other capital reserves.............................................................

85,540
88
17,875
32,341
33,517
.1,719

63,174
36
12,816
23,127
26,013
1,182

12,871

2,947

2.645
4,541
5,554
132

570
1,404
921
52

21,177
5
4,007
8,148
8,680
337

26,178
31
5,594
9,034
10,858
661

22,380
52
5,064
9,217
7,509
538

116 Total liabilities and equity capital............................................. 1,198,495

904,182

170,899

44,170

338,079

351,034

294,595

Memo items:
Demand deposits adjusted2.......................................................
Average for last 15 or 30 days:
Cash and due from bank.......................................................
Federal funds sold and securities purchased under agree­
ments to resell.................................................................
Total loans........... ..................................................................
Time deposits of $100,000 or more.......................................
Total deposits.........................................................................
Federal funds purchased and securities sold under agree­
ments to repurchase........................................................
Other liabilities for borrowed money...................................

252,337

171,864

18,537

5,576

60,978

86,774

80,472

146,283

124,916

36,862

6,030

45,731

36,293

21,379

43,873
651,874
183,614
944,593

33,682
483,316
150,160
687,543

4,272
76,750
32,196
107,028

1,887
25,722
13,216
28,922

16,007
184,790
65,776
250,804

11,517
196,054
38,972
300,789

10,307
168,558
33,454
257,062

92,685
8,716

86,635
8,326

22,896
3,679

9,473
370

40,541
3,211

13,725
1,067

6,053
390

125 Standby letters of credit outstanding........................................
126 Time deposits of $100,000 or more..........................................
127
128 Other time deposits................................................................

18,820
186,837
160,227
26,610

17,658
152,553
129,667
22,886

10,063
32,654
27,950
4,704

1,477
13,486
11,590
1,896

4,820
66,684
56,383
10,301

1,297
39,728
33,743
5,985

1,162
34,284
30,560
3,724

129 Number of banks.......................................................................

14,390

5,593

12

9

153

5,419

8,810

117
118
119
120
121
122
123
124

1 Member banks exclude and nonmember banks include 13 noninsured
trust companies that are members of the Federal Reserve System.
2 Demand deposits adjusted are demand deposits other than domestic
commercial interbank and U.S. government, less cash items reported
as in process of collection.




N ote. Data include consolidated reports, including figures for all
bank-premises subsidiaries and other significant majority-owned do­
mestic subsidiaries. Securities are reported on a gross basis before deduc­
tions of valuation reserves. Back data in lesser detail were shown in
previous issues of the Bulletin.

A 20
1 .2 7

D o m estic F in a n cial Statistics □ A p r il 1979
A L L L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S w ith D o m e s t ic A s s e ts o f $ 1 5 0 M illio n o r M o r e o n
D e c e m b e r 3 1 , 1 9 7 7 , A s s e ts a n d L ia b ilitie s
Millions o f dollars, Wednesday figures

1979
Account
Jan. 31

Feb. 7

Feb. 14

Feb. 21

Feb. 28*

Mar. 7*

44,193
1 Cash items in process of collection.....................
2 Demand deposits due from banks in the United
14,321
States..............................................................
3 All other cash and due from depositary
institutions.....................................................
29,878
4 Total loans and securities..................................... 451,140

42,152

44,504

49,562

49,083

42,944

44,596

40,658

13,340

12,571

13,862

15,538

12,285

12,537

13,823

12,472

33,125
450,590

36,096
451,292

26,631
459,394

28,925
455,176

24,686
460,266

35,288
455,966

24,739
461,963

28,923
457,323

34,990

35,235

34,938

36,186

36,132

38,380

37,132

37,283

36,939

64,238

64,798

64,381

A,212
64,973

A,261
65,195

Securities
5 U.S. Treasury securities ........................................
6 Trading account................................................
7 Investment account, by maturity.....................
8
One year or less............................................
Over one through five years.........................
9
Over five years..............................................
10
11 Other securities......................................................
12 Trading account................................................
13 Investment account...........................................
14
U.S. government agencies............................
States and political subdivision, by maturity.
15
16
One year or less........................................
17
Over one year............................................
Other bonds, corporate stocks and
18
securities.................................................
Loans

19 Federal funds sold1 ...............................................
20 To commercial banks.......................................
21 To nonbank brokers and dealers in securities.
22 To others............................................................
23 Other loans, gross.................................................
24 Commercial and industrial...............................
Bankers’ acceptances and commercial
25
paper.......................................................
All other........................................................
26
27
U.S. addresses............................................
Non-U.S. addressees..................................
28
29 Real estate.........................................................
30 To individuals for personal expenditures........
To financial institutions
31
Commercial banks in the U.S......................
32
Banks in foreign countries...........................
33
Sales finance, personal finance companies,
etc............................................................
34
Other financial institutions...........................
35 To nonbank brokers and dealers in securities.
36 To others for purchasing and carrying
securities2 ...................................................
37 To finance agricultural production.................
38 All other............................................................
39 Less: Unearned income........................................
40
41 Other loans, net.....................................................
42 Lease financing receivables..................................
43 All other assets......................................................
44 Total assets............................................................
Deposits
45 Demand deposits ....................................................
46 Mutual savings banks.......................................
47 Individuals, partnerships, and corporations..
48 States and political subdivisions.....................
49
U.S. government...............................................
50 Commercial banks in United States...............
Banks in foreign countries...............................
51
52 Foreign governments and official institutions.
53 Certified and officers’ checks...........................
54 Time and savings deposits .....................................
55 Savings...............................................................
Individuals and nonprofit organizations.....
56
57
Partnerships and corporations operated for
profit.......................................................
Domestic governmental units.......................
58
59
All other........................................................
60 Time...................................................................
61 Individuals, partnerships, and corporations..
62 States and political subdivisions.....................
63
64 Commercial banks in United States...............
Foreign governments, official institutions,
65
and banks............................................ .....
66 Federal funds purchased 3................................
Other liabilities for borrowed money
67
Borrowings from Federal Reserve Banks..
68
Treasury tax-and-loan notes...................
69
All other liabilities for borrowed money. ..
70 Other liabilities and subordinated note and
debentures..................................................
71 Total liabilities..................................................
72

Residual (total assets minus total liabilities)4.

3,934
31,056
7,935
18,944
4,176

2,485
61,754
12,094
46,838
7,620
39,217

2,946
61,852
12,136
46,890
7,514
39,376

3,472
31,466
8,373
18,789
4,304

4,418
31,768
8,424
18,817
4,528

4,410
31,722
8,588
18,682
4,451

64,616
2,625

64,443

2,646
61,735
12,109
46,809
7,383
39,426

61,992
12,199
46,976
7,388
39,587

2,596
61,847
12,287
46,808
7,179
39,629

5,328
33,052
9,679
19,002
4,371
64,487

2,594
61,893
12,189
46,935
7,488
39,447

4,302
32,830
9,651
18,890
4,288

65,327

3,133
62,194
12,436
46,992
7,500
39,492

4,438
32,845
9,718
18,854

2,760
62,213
12,467
46,986
7,515
39,471

44,700

4,130
32,809
9,717
18,826

2,863
62,332
12,430
47,136
7,561
39,575

2,822

2,826

2,816

2,817

2,752

2,769

2,765

2,759

2,766

25,483

24,807

24,456

29,694

25,821

28,821

25,736

30,715

25,549

17,732
5,628
2,124
336,481
131,648

17,237
5,600
1,970
335,900
132,311

17,765
4,935
1,756
337,734
133,112

18,364
8,008
3,322
339,121
133,825

17,992
5,184
2,645
338,978
134,097

17,649
7,528
3,644
338,850
133,975

18,195
5,093
2,449
338,084
134,074

20,633
6,997
3,085
339,367
135,071

17,800
5,425
2,324
340,053
135,918

3,489
128,159
121,838
6,320
81,811
60,641

3,484
128,827
122,554
6,273
81,754
60,614

3,760
129,352
123,098
6,254
81,984
60,577

3,844
129,980
123,699
6,281
82,236
60,683

3,678
130,419
124,194
6,225
82,372
60,843

3,425
130,550
124,362
6,188
82,582
60,885

3,308
130,766
124,632
6,134
82,915
61,007

3,159
131,912
125,710
6,202
83,082
61,185

3,405
132,514
126,319
6,194
83,274
61,447

2,915
8,401

2,811
7,882

3,094
8,416

3,287
8,459

2,851
8,073

2,633
7,723

2,886
8,019

2,709
7,670

2,744
7,040

7,985
15,154
8,671

8,146
14,971
8,264

8,150
15,128
7,601

7,824
14,937
8,241

7,934
14,952
7,924

8,184
15,042
8,266

8,047
14,782
6,982

8,057
14,676
7,603

8,084
14,611
7,405

2,309
4,470
12,476
5,626
4,427
326,428
5,513
64,555
609,600

2,327
4,420
12,399
5,662
4,487
325,750
5,457
63,534
608,199

2,332
4,439
12,902
5,722
4,495
327,517
5,462
63,381
613,306

2,333
4,444
12,852
5,724
4,499
328,898
5,515
62,648
617,613

2,364
4,424
13,145
5,647
4,551
328,780
5,554
63,546
617,823

2,380
4,464
12,715
5,684
4,588
328,577
5,572
62,338
608,090

2,388
4,507
12,476
5,739
4,574
327,771
5,630
63,075
617,092

2,318
4,544
12,451
5,791
4,584
328,992
5,654
62,382
609,219

2,326
4,578
12,624
5,834
4,578
329,640
5,681
60,801
609,900

176,174

170,192

174,570

731
125,565
4,767
888
27,280
6,900
1,250
7,189

183,299

180,205

167,876

168,171

698
125,848
5,228
858
31,659
6,565
1,496
7,852

766
120,399
4,303
775
26,375
6,796
1,168
7,293

172,469

707
119,962
4,730
759
27,439
6,473
1,450
8,671

169,110

258,305

257,732

257,661

257,627

257,725

257,676

4,236
858
21
182,251
142,957
23,866
483
7,632

4,222
896
23
181,504
142,575
23,882
497
7,419

4,214
883
24
181,577
142,621
24,024
499
7,399

7,313
70,698

7,131
81,581

3,602
7,097
7,617

747
124,395
5,274
1,406
29,035
6,667
1,165
7,485

728
129,118
4,756
2,351
30,400
7,724
1,115
7,105

651
119,885
A , 736
918
27,662
6,742
1,131
6,444

611
120,176
4,355
763
26,546
6,549
1,182
8,927

256,893

76,248
71,191

76,558
71,491

4,202
856
25
181,269
142,465
24,070
492
7,438

4,178
859
20
181,316
142,501
24,116
510
7,379

4,176
859
32
180,335
141,587
24,062
488
7,389

4,231
833
23
179,925
141,430
23,887
476
7,270

6,806
77,056

6,805
81,379

6,810
86,598

6,808
79,082

6,862
81,065

356
2,814
8,671

816
1,964
11,561

1,490
1,260
9,632

731
323
10,986

1,104
5,011
9,852

838
2,215
9,672

44,633
571,540

45,379
575,787

46,502
575,828

46,869
566,183

46,378
575,050

47,279
567,392

48,241
567,900

41,765

41,826

41,995

41,908

42,042

41,827

42,000

76,407
71,324

4,199
874
26
181,467
142,412
24,132
502
7,370

4,167
845
23
181,700
142,710
24,302
487
7,394

7,034
82,660

7,050
77,641

44
4,287
8,733

498
2,531
8,988

44,252
567,746

43,727
566,295

41,854

41,904

76,228
71,087

692
124,087
4,384
886
28,332
6,498
1,138
6,452

257,564

76,026
70,991

76,054
70,939

1 Includes securities purchased under agreements to resell.
2 Other than financial institutions and brokers and dealers.
3 Includes securities sold under agreements to repurchase.




3,892
31,343
8,295
18,705
4,343

Mar. 14* Mar. 21* Mar. 28*

76,084
70,963

76,160
71,061

256,756

76,831
71,745

4 This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.

Weekly Reporting Banks
1.2 8

A 21

L A R G E W E E K L Y R E P O R T I N G C O M M E R C I A L B A N K S w ith D o m e s t ic A s s e ts o f $ 1 B illio n o r M o r e o n
D e c e m b e r 3 1 , 1 9 7 7 A s s e ts a n d L ia b ilitie s
Millions o f dollars, Wednesday figures

1979
Account
Jan. 31

Feb. 7

Feb. 14

Feb. 21

Feb. 28p

Mar. iv

41,972
1 Cash items in process of collection.....................
2 Demand deposits due from banks in the United
13,644
States..............................................................
3 All other cash and due from depositary
28,143
institutions.....................................................
4 Total loans and securities..................................... 421,565

40,276

42,396

46,860

46,747

40,846

42,498

38,606

12,668

11,851

13,056

14,774

11,669

11,917

13,154

11,821

31,247
421,207

34,422
421,750

25,165
429,664

27,028
425,920

23,211
430,578

33,417
426,347

23,235
431,982

27,158
427,846

32,836

32,532

33,803

33,725

35,943

34,708

34,834

34,488

Securities
5 U.S. Treasury securities .......................................
6 Trading account................................................
7 Investment account, by maturity.....................
One year or less............................................
8
Over one through five years.......................
9
Over five years..............................................
10
11 Other securities......................................................
12
13 Investment account...........................................
U.S. government agencies.............................
14
States and political subdivision, by maturity.
15
One year or less........................................
16
Over one year............................................
17
Other bonds, corporate stocks and
18
securities.................................................

32,593

3,896
28,697
7,298
17,612
3,787

3,859
28,977
7,655
17,365
3,957

59,324

59,884

3,429
29,102
7,732
17,453
3,918

59,472

4,379
29,424
7,814
17,463
4,147

59,737

4,355
29,370
7,975
17,275
4,119

4,388
30,446
9,092
17,402
3,952

4,076
30,411
9,099
17,368
3,944

2,873
57,011
11,294
43,117
6,946
36,171

2,575
56,897
11,282
43,027
6,811
36,216

2,582
57,156
11,382
43,180
6,809
36,371

2,547
56,971
11,434
43,014
6,593
36,421

2,547
57,036
11,348
43,147
6,812
36,335

60,392

60,042

3,076
57,316
11,589
43,191
6,813
36,378

2,702
57,340
11,613
43,185
6,820
36,365

2,808
57,437
11,576
43,312
6,862
36,451

2,586

2,599

2,587

2,593

2,523

2,540

2,536

2,541

2,548

23,342
19 Federal funds sold1 ...............................................
15,970
20 To commercial banks.......................................
To nonbank brokers and dealers in securities.
5,258
21
2,115
22 To others............................................................
23 Other loans, gross................................................. 315,620
24 Commercial and industrial............................... 124,857
Bankers’ acceptances and commercial
25
3,424
paper.......................................................
All other........................................................ 121,433
26
U.S. addresses............................................ 115,161
27
6,272
Non-U.S. addressees..................................
28
29 Real estate.......................................................... 76,640
30 To individuals for personal expenditures........ 53,992
To financial institutions
2,819
Commercial banks in the U.S......................
31
8,319
Banks in foreign countries...........................
32
Sales finance, personal finance companies,
33
7,793
etc............................................................
Other financial institutions...........................
14,625
34
8,564
35 To nonbank brokers and dealers in securities.
36 To others for purchasing and carrying
2,001
securities2 ...................................................
4,315
37 To finance agricultural production.................
11,693
38 All other............................................................
5,141
39 Less: Unearned income........................................
4,172
40
41 Other loans, net..................................................... 306,306
42 Lease financing receivables..................................
5,355
43 All other assets...................................................... 62,933
44 Total assets............................................................ 573,613

22,824

22,309

27,390

24,058

26,634

23,664

28,421

23,750

Deposits
45 Demand deposits .................................................... 165,426
717
46 Mutual savings banks.......................................
47 Individuals, partnerships, and corporations.. 116,158
4,576
48 States and political subdivisions.....................
U.S. government...............................................
1,295
49
27,716
50 Commercial banks in United States...............
6,591
Banks in foreign countries...............................
51
1,162
52 Foreign governments and official institutions.
7,209
53 Certified and officers’ checks...........................
54 Time and savings deposits ..................................... 241,483
70,496
55
Individuals and nonprofit organizations....
65,755
56
Partnerships and corporations operated for
57
3,921
Domestic governmental units.......................
798
58
All other........................................................
21
59
60 Time................................................................... 170,987
61 Individuals, partnerships, and corporations.. 134,167
21,711
62 States and political subdivisions.....................
479
63
U.S. government...............................................
7,333
64 Commercial banks in United States..........
Foreign governments, official institutions,
65
and banks..................................................
7,298
66 Federal funds purchased3....................................
66,997
Other liabilities for borrowed money
3,490
Borrowings from Federal Reserve Banks..
67
6,583
Treasury tax-and-loan notes.........................
68
All other liabilities for borrowed money. . .
7,260
69
70 Other liabilities and subordinated note and
debentures..................................................
43,125
71 Total liabilities.................................................. 534,365
72

Residual (total assets minus total liabilities)4.

39,248

1 Includes securities purchased under agreements to resell.
2 Other than financial institutions and brokers and dealers.
3 Includes securities sold under agreements to repurchase.




59,583

4,264
30,443
9,013
17,463
3,968

42,734

2,406
56,918
11,270
43,061
7,040
36,021

Loans

59,519

5,266
30,677
9,049
17,588
4,040

Mar. 14? Mar. 21 v Mar. 28?

60,245

15,603
5,264
1,957
315,071
125,492

15,965
4,618
1,726
316,909
126,298

16,458
7,678
3,254
318,206
126,928

16,468
4,977
2,613
318,062
127,175

15,716
7,297
3,621
317,931
127,076

16,371
4,867
2,426
317,130
127,137

18,656
6,783
2,982
318,292
128,028

16,228
5,229
2,294
319,004
128,889

3,408
122,083
115,859
6,224
76,584
53,967

3,690
122,607
116,402
6,205
76,796
53,914

3,774
123,154
116,922
6,232
77,043
54,028

3,609
123,566
117,390
6,175
77,175
54,179

3,360
123,716
117,578
6,138
77,384
54,210

3,246
123,891
117,810
6,081
77,700
54,309

3,088
124,940
118,792
6,148
77,858
54,465

3,340
125,549
119,408
6,141
78,039
54,716

2,719
7,814

2,992
8,342

3,181
8,376

2,749
7,989

2,544
7,650

2,796
7,935

2,625
7,597

2,657
6,972

7,965
14,440
8,160

7,986
14,605
7,512

7,661
14,430
8,149

7,782
14,445
7,836

8,031
14,528
8,172

7,903
14,284
6,897

7,902
14,212
7,513

7,918
14,167
7,310

2,023
4,271
11,635
5,176
4,232
305,663
5,299
61,956
572,653

2,034
4,290
12,140
5,234
4,238
307,437
5,303
61,816
577,538

2,037
4,296
12,076
5,233
4,240
308,734
5,365
61,220
581,320

2,069
4,281
12,383
5,162
4,281
308,618
5,396
62,011
581,877

2,090
4,321
11,925
5,196
4,317
308,419
5,411
60,864
572,579

2,107
4,362
11,702
5,245
4,302
307,583
5,469
61,607
581,256

2,045
4,396
11,650
5,293
4,313
308,685
5,493
60,919
573,391

2,045
4,430
11,861
5,334
4,307
309,363
5,519
59,309
574,385

159,957

163,833

172,084

169,524

157,567

161,946

157,911

159,015

239,790

239,714

677
112,010
4,127
660
26,184
6,409
1,446
8,444

240,784

70,650
65,898

702
117,167
4,130
804
26,043
6,837
1,247
6,903

240,622

70,533
65,811

702
120,461
4,157
2, M l
28,980
7,662
1,109
6,835

240,618

70,605
65,893

665
117,655
4,594
748
30,281
6,489
1,494
7,599

712
112,470
3,784
592
25,072
6,738
1,154
7,045

240,754
IQ ,A ll

240,672

65,824

70,811
66,141

666
115,773
3,812
808
27,101
6,434
1,134
6,216

240,477

70,645
66,016

628
112,038
3,969
819
26,425
6,687
1,130
6,215
70,935
66,287

584
112,297
3,688
688
25,389
6,491
1,180
8,698
71,226
66,548

3,906
823
23
170,134
133,717
21,696
492
7,113

3,895
803
23
170,090
133,644
21,838
494
7,096

3,880
807
26
170,013
133,463
21,945
498
7,073

3,855
111
22
170,282
133,772
22,135
482
7,103

3,886
760
24
169,861
133,518
21,917
487
7,151

3,865
746
. 19
169,832
133,500
21,940
505
7,092

3,868
750
31
168,855
132,581
21,880
483
7,116

3,920
736
22
168,489
132,436
. 21,738
470
6,997

7,115
77,588

7,017
78,922

7,034
73,777

6,790
73,042

6,788
77,354

6,794
82,574

6,794
75,106

6,847
76,971

44
4,009
8,368

457
2,397
8,633

324
2,607
8,380

703
1,816
11,277

1,478
1,150
9,275

675
272
10,654

1,066
4,662
9,503

767
2,057
9,355

42,594
533,344

43,505
538,370

44,309
542,099

45,346
542,460

533,271

AS,11A

45,226
541,824

46,123
534,161

47,129
535,009

39,309

39,168

39,221

39,416

39,308

39,432

39,230

39,376

4 This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.

A 22
1 .2 9

D om estic F in an cial Statistics □ A p r il 1979
L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S I N N E W Y O R K C IT Y
Millions o f dollars, Wednesday figures

A s s e ts a n d L ia b ilitie s

1979
Account

1 Cash items in process of collection.....................
2 Demand deposits due from banks in the United
States.............................................................
3 All other cash and due from depositary
institutions.....................................................
5
6
7
8
9
10
11
P
13
14
15
16
17
18

Investment account, by maturity.....................
Over one through five years.........................
Over five years..............................................
Investment account...........................................
U.S. government agencies.............................
States and political subdivision, by maturity.
One year or less.........................................
Other bonds, corporate stocks and securities

20
To nonbank brokers and dealers in securities.
21
27 To others............................................................
23 Other loans, gross.............................................
24 Commercial and industrial...........................
Bankers’ acceptances and commercial
25
paper...................................................
All other.....................................................
26
U.S. addressees................. *...................
27
Non-U.S. addressees.............................
28
29 Real estate......................................................
30 To individuals for personal expenditures.. . .
To financial institutions
31
Commercial banks in the U.S..................
Banks in foreign countries..................... .
32
Sales finance, personal finance companies,
33
etc........................................................
Other financial institutions.......................
34
35 To nonbank brokers and dealers in securities.
36 To others for purchasing and carrying
To finance agricultural production..............

42 Lease financing receivables..................................
43
Deposits
46
47
48
49
50
51
52
53
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70

Feb. 7

Feb. 14

Feb. 21

Feb. 28p

Mar. I p

Mar. \4 p Mar. 21 p Mar. 28v

15,975

16,810

16,544

14,792

18,084

15,648

15,851

13,768

18,038

8,627

8,381

7,315

7,618

9,662

7,609

7,737

9,008

7,824

7,620
96,429

8,963
96,663

9,655
96,908

5,562
100,654

5,999
97,452

5,921
98,095

8,164
97,209

5,618
100,060

6,503
97,294

5,844
650
4,447
748

6,244
767
4,626
850

6,336
748
4,749
839

6,698
888
4,766
1,044

6,604
932
4,659
1,013

7,233
1,121
5,149
963

6,956
1,059
4,969
928

7,003
1,135
4,939
928

7,004
1,117
4,970
917

11,258
1,405
9,205
1,732
7,473
648

11,355
1,505
9,208
1,645
7,564
641

11,250
1,440
9,165
1,666
7,499
645

11,266
1,447
9,173
1,617
7,556
646

11,012
1,413
9,037
1,464
7,573
561

11,145
1,513
9,078
1,492
7,587
553

11,031
1,453
9,030
1,470
7,561
548

11,021
1,396
9,079
1,528
7,551
546

11,066
1,390
9,126
1,558
7,568
549

6,362

5,567

8,699

6,483

6,348

6,458

9,367

6,618

Securities

Loans

37
38
39
40

Jan. 31

Mutual savings banks........................... .
Individuals, partnerships, and corporations...
States and political subdivisions......................
Banks in foreign countries..................... ........
Foreign governments and official institutions.
Certified and officers’ checks...........................
Individuals and nonprofit organizations---Partnerships and corporations operated for
Domestic governmental units.......................
Individuals, partnerships, and corporations.
States and political subdivisions..................
Commercial banks in U.S...........................
Foreign governments, official institutions,
and banks..............................................
Federal funds purchased 6....................................
Other liabilities for borrowed money
Borrowings from Federal Reserve Banks.......
Treasury tax-and-loan notes...........................
All other liabilities for borrowed money........
Other liabilities and subordinated note and
debentures......................... ............................

71
72 Residual (total assets minus total liabilities)7..

6,419

4,779
1,281
358
74,912
37,404

4,146
1,966
250
74,736
37,599

3,558
1,759
250
75,820
38,084

5,023
2,774
902
76,061
38,256

3,922
1,689
872
75,423
38,287

2,476
2,763
1,109
75,459
38,340

3,790
1,818
850
74,854
38,273

6,420
2,245
701
74,763
38,279

3,976
1,995
647
74,713
38,460

964
36,440
34,091
2,349
10,293
7,274

921
36,678
34,393
2,286
10,285
7,255

1,121
36,964
34,683
2,280
10,323
7,255

1,094
37,162
34,876
2,286
10,391
7,258

950
37,337
35,076
2,261
10,377
7,264

925
37,415
35,168
2,247
10,404
7,290

908
37,364
35,128
2,237
10,464
7,305

822
37,457
35,224
2,233
10,477
7,319

900
37,560
35,331
2,229
10,504
7,344

1,010
3,497

884
3,331

1,191
3,916

1,266
3,930

953
3,548

965
3,421

1,219
3,732

964
3,517

974
3,147

3,017
4,404
4,823

3,152
4,364
4,560

3,236
4,405
4,042

2,950
4,340
4,439

3,064
4,373
4,221

3,230
4,315
4,354

3,160
4,096
3,477

3,117
4,119
3,888

3,081
4,130
3,915

411
200
2,579
639
1,364
72,908
492
32,026
161,169

412
201
2,693
648
1,386
72,702
493
31,084
162,394

421
209
2,736
669
1,396
73,754
498
30,567
161,486

418
216
2,596
669
1,401
73,990
498
31,230
160,354

432
206
2,695
660
1,410
73,354
499
32,157
163,854

430
209
2,500
667
1,423
73,369
500
32,012
159,784

421
223
2,485
674
1,417
72,764
529
33,071
162,561

353
236
2,492
679
1,414
72,669
529
32,482
161,465

355
227
2,575
689
1,417
72,607
531
31,261
161,451

56,103
421

54,308

53,978

56,149

58,556

51,369

53,254

53,823

53,955

50,996

50,823

49,677

49,306

48,447

29,397
518
224
16,645
4,924
770
3,197

417
28,837
547
101
14,856
5,189
982
3,049
50,265

9,486
8,842

9,551
8,892

9,535
8,890

438
196
9
41,510
31,741
1,817
35
3,375

438
210
12
41,272
31,660
1,839
36
3,328

441
191
13
40,729
31,206
1,868
30
3,275

4,541
17,168

4,409
22,205

2,021
1,255
3,770

395
29,060
476
571
15,838
5,798
867
3,144
50,397

381
29,600
412
102
18,552
4,662
1,255
3,593

49,881

399
26,755
365
92
14,188
5,035
870
3,664
49,672

392
27,885
384
134
16,295
4,653
832
2,679

352
28,302
508
113
15,782
5,056
890
2,820

313
27,799
382
102
14,490
4,872
933
5,064

9,548
8,913

9,617
8,983

441
187
14
40,858
31,265
1,906
29
3,296

440
184
12
40,333
31,071
1,877
23
3,274

440
178
16
40,055
30,813
1,868
28
3,274

435
178
10
40,061
30,861
1,844
40
3,194

446
174
23
39,621
30,460
1,852
43
3,179

448
178
12
38,680
29,738
1,765
43
3,060

4,350
22,353

4,362
18,931

4,087
19,291

4,072
22,385

4,121
24,328

4,087
21,342

4,074
22,398

784
4,047

482
4,037

324
3,930

411
4,049

490
210
3,990

155
2
3,985

279
1,264
3,869

386
498
3,766

17,150
148,462

17,438
149,605

17,623
148,739

17,776
147,506

IS,111

150,966

18,890
147,006

18,217
149,619

18,776
148,660

19,248
148,698

12,707

12,789

12,748

12,848

12,889

12,779

12,943

12,806

12,752

1 Excludes trading account securities.
2 Not available due to confidentiality.
3 Includes securities purchased under agreements to resell.
4 Other than financial institutions and brokers and dealers.




405
27,691
462
77
14,965
4,848
974
4,886

9,538
8,896

9,617
8,993

9,686
9,042

9,767
9,129

5 Includes trading account securities.
6 Includes securities sold under agreements to repurchase.
7 This is not a measure of equity capital for use in capital adequacy
analysis or for other analytic uses.

Weekly Reporting Banks
1 .3 0

L A R G E W E E K L Y R E P O R T IN G C O M M E R C IA L B A N K S
Millions o f dollars, Wednesday figures

A 23

B a la n c e S h e e t M e m o r a n d a

1979
Account
Jan. 31

Feb. 7

Feb. 14

Feb. 21

Feb. 28*

Mar. 7*

Mar. 14* Mar. 21* Mar. 28*

Large weekly reporting banks with assets of $750 million or more
1 Total loans (gross) and investments adjusted1. . . 440,546
2 Total loans (gross) adjusted1............................... 341,318
3 Demand deposits adjusted 2................................. 101,540

440,692
340,659
99,843

440,650
341,331
101,899

447,966
347,163
100,984

444,532
343,956
98,605

450,256
347,389
97,782

445,198
342,739
98,654

448,996
346,740
98,932

447,191
345,057
97,101

4 Time deposits in accounts o f $100,000 or more. ..

131,950

96,243
35,707

131,068

131,029

130,790

130,191

129,948

95,485
35,584

95,240
35,789

130,781

128,711

128,274

Negotiable C D s................................................
Other time deposits..........................................

7 Loans sold outright to affilates 3...........................
8 Commercial and industrial...............................
9 Other..................................................................

3,570

3,578

3,615

3,618

3,540

3,491

3,474

3,504

3,631

5
6

2,501
1,069

2,481
1,097

2,554
1,061

95,124
35,657
2,562
1,056

94,714
36,076
2,489
1,050

94,244
35,947
2,496
995

93,767
36,181
2,467
1,007

92,697
36,013
2,498
1,006

92,361
35,913

2,594
1,037

Large weekly reporting banks with assets of $1 billion or more
10 Total loans (gross) and investments adjusted1... 412,090
11 Total loans (gross) adjusted1............................... 320,173
12 Demand deposits adjusted2.................................
94,442

412,292
319,573
92,838

412,265
320,261
94,590

419,497
325,956
94,068

416,147
322,903
91,748

421,831
326,306
91,056

416,727
321,627
91,538

420,308
325,432
92,061

418,603
323,870
90,205

13 Time deposits in accounts o f $100,000 or more...
14 Negotiable C D s................................................
15 Other time deposits..........................................

124,399

123,411

90,762
32,648

123,269

123,046

123,119

122,558

122,259

121,037

120,638

91,608
32,791

16 Loans sold outright to affiliates3...........................
17 Commercial and industrial...............................
18 Other..................................................................

3,528

3,537

3,573

3,575

3,498

3,453

3,435

3,463

3,590

2,484
1,044

2,464
1,073

90,535
32,734
2,-535
1,038

90,370
32,676
2,543
1,033

89,983
33,136
2,471
1,027

89,519
33,040
2,480
973

89,015
33,244
2,452
983

87,952
33,085
2,482
981

87,608
33,029
2,577
1,013

Large weekly reporting banks5 in New York City
19 Total loans (gross) and investments adjusted1-4.
20 Total loans (gross) adjusted1...............................
21 Demand deposits adjusted2.................................

92,644
75,542
23,259

93,666
76,068
22,456

94,224
76,637
22,478

96,435
78,471
24,949

94,646
77,030
21,817

96,745
78,366
21,440

94,292
76,305
20,974

94,768
76,744
24,160

94,450
76,381
21,326

22 Time deposits in accounts o f $100,000 or m ore...
23 Negotiable C D s................................................
24 Other time deposits..........................................

36,422

36,192

35,638

35,698

35,191

34,886

34,810

34,351

33,438

29,139
7,282

28,844
7,348

1 Exclusive of loans and federal funds transactions with domestic com­
mercial banks.
2 All demand deposits except U.S. government and domestic banks
less cash items in process of collection.




28,309
7,329

28,321
7,377

27,683
7,508

27,373
7,513

27,248
7,562

26,874
7,477

26,062
7,376

3 Loans sold are those sold outright to a bank’s own foreign branches,
nonconsolidated nonbank affiliates of the bank, the bank’s holding com­
pany (if not a bank) and nonconsolidated nonbank subsidiaries of the
holding company.
4 Excludes trading account securities.

A 24

1.31

D om estic F in an c ia l Statistics □ A p r il 1979

LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial
Loans
Millions of dollars
Outstanding
Industry classification

1979

1978
Nov. 29

Net change during—

Dec. 27

Jan. 31 '

Feb. 28 *• Mar. 28

1978

1979

Q4

Ql

1979
Jan.

Feb.

Mar.

1 Durable goods manufacturing..........

17,325

18,004

17,786

18,818

19,482

365

1,478

-218

1,032

664

2 Nondurable goods manufacturing. . .
3 Food, liquor, and tobacco.............
4 Textiles, apparel, and leather........
5 Petroleum refining..........................
6 Chemicals and rubber....................
7 Other nondurable goods................

16,775
4,654
3,964
2,522
3,210
2,425

17,216
4,936
3,726
2,643
3,540
2,371

16,474
4,620
3,788
2,370
3,285
2,411

16,829
4,689
3,954
2,353
3,384
2,449

17,466
4,816
4,199
2,274
3,508
2,669

213
686
-624
153
88
-8 9

250
-1 2 0
473
-369
-32
298

-742
-316
62
-273
-255
40

355
69
166
-1 7
99
38

637
127
245
-7 9
124
220

8 Mining (including crude petroleum
and natural gas)..........................

10,495

10,652

10,038

9,973

10,130

200

-5 2 2

-6 1 4

-6 5

157

9 Trade...................................................
10 Commodity dealers.........................
11 Other wholesale..............................
12 Retail...............................................

20,364
1,787
9,520
9,057

19,964
1,963
9,436
8,565

21,136
1,982
10,157
8,997

21,532
1,950
10,401
9,182

22,479
1,895
10,967
9,616

817
227
277
312

2,515
-6 8
1,531
1,051

1,172
19
721
432

396
-3 2
244
185

947
-5 5
566
434

13 Transportation, communication, and
other public utilities...................
14 Transportation................................
15 Communication...............................
16 Other public utilities.......................

12,892
5,649
1,756
5,487

13,411
5,641
1,797
5,973

13,543
5,798
1,753
5,991

13,836
6,028
1,832
5,977

13,986
6,199
1,847
5,940

1,086
74
83
930

575
558
50
-3 3

132
157
-4 4
18

293
230
79
-1 4

150
171
15
-3 7

17 Construction.......................................
18 Services................................................
19 All other1............................................

5,156
14,432
17,995

5,207
14,957
16,908

5,113
15,478
15,592

5,071
15,609
15,722

5,401
15,910
14,553

-2 5
982
-409

194
953
-2 ,3 5 5

-9 4
521
-1 ,3 1 6

-4 2
131
130

330
301
-1 ,1 6 9

20 Total domestic loans..........................

115,434

116,319

115,161

117,390

119,408

3,229

3,089

-1 ,1 5 8

2,229

2,018

21 Memo: Term loans (original maturity
more than 1 year) included in
domestic loans.............................

55,107

55,273

57,709

58,666

59,975

1,718

4,702

2,436

957

1,309

1 Includes commercial and industrial loans at a few banks with assets
with domestic assets of $1 billion or more as of December 31, 1977 are
of $ 1 billion or more that do not classify their loans.
included in this series. The revised series is on a last-Wednesday-of-themonth basis.
N ote. New series. The 134 large weekly reporting commercial banks




Deposits and Commercial Paper

A 25

1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations
Billions of dollars, estimated daily-average balances
At commercial banks
Type of holder

1 All holders, individuals,

partnerships,

and

3 Nonfinancial business.......

1974
Dec.

1975
Dec.

1976
Dec.

225.0

236.9

19.0
118.8
73.3
2.3
11.7

20.1
125.1
78.0
2.4
11.3

1977

1978

June

Sept.

Dec.

Mar.

June

Sept.

Dec.

250.1

253.8

252.7

274.4

262.5

271.2

278.8

294.6

22.3
130.2
82.6
2.7
12.4

25.9
129.2
84.1
2.5
12.2

23.7
128.5
86.2
2.5
11.8

25.0
142.9
91.0
2.5
12.9

24.5
131.5
91.8
2.4
12.3

25.7
137.7
92.9
2.4
12.4

25.9
142.5
95.0
2.5
13.1

27.8
152.7
97.4
2.7
14.1

At weekly reporting banks

7 All holders, individuals,
corporations................

partnerships,

and

8 Financial business.............
9 Nonfinancial business........
11 Foreign...............................
12 Other...................................

1975
Dec.

1976
Dec.

1977
Dec.

124.4

128.5

15.6
69.9
29.9
2.3
6.6

17.5
69.7
31.7
2.6
7.1

N ote. Figures include cash items in process of collection. Estimates of
gross deposits are based on reports supplied by a sample of commercial

1978
June

July

Aug.

Sept.

Oct.

Nov.

Dec.

139.1

136.9

139.9

137.7

139.7

141.3

142.7

147.0

18.5
76.3
34.6
2.4
7.4

19.0
71.9
36.6
2.3
7.1

19.4
73.7
37.1
2.3
7.3

19.4
72.0
36.8
2.4
7.1

18.9
74.1
37.1
2.4
7.3

19.1
75.0
37.5
2.5
7.2

19.3
75.7
37.7
2.5
7.5

19.8
79.0
38.2
2.5
7.5

banks. Types of depositors in each category are described in the June 1971
Bulletin, p. 466.

1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING
Millions of dollars, end of period

Instrument

1975
Dec.

1976
Dec.

1978

1977
Dec.

Aug.

Sept.

Oct.

1979

J

Nov.

Dec.

Jan.

Feb.

Commercial paper (seasonally adjusted)
1 All issuers................................................................

48,471

52,971

65,101

74,135

77,021

77,734

80,679

83,665

85,226

87,358

Financial companies:1
Dealer-placed paper:2
Total................................................................
Bank-related....................................................
Directly-placed paper:3
Total................................................................
Bank-related....................................................

6,212
1,762

7,261
1,900

8,884
2,132

10,864
2,935

11,429
2,622

10,949
2,868

11,487
3,231

12,296
3,521

12,915
4,413

13,419
3,969

31,404
6,892

32,511
5,959

40,484
7,102

45,828
9,634

47,760
10,383

48,460
10,925

50,093
11,478

51,630
12,314

52,880
12,191

54,586
12,166

6 Nonfinancial companies4......................................

10,855

13,199

15,733

17,443

17,832

18,325

19,099

19,739

19,431

19,353

33,749

34,337

2
3
4
5

Dollar acceptances (not seasonally adjusted)
7 Total........................................................................
8
9
10

18,727

22,523

25,450

7,355
5,899
1,435

10,442

10,434

8,769
1,673

8,915
1,519

6,131
917

6,461
1,186

1,126
’293

991
375

954
362

27,952

30,579

32,145

33,700

7,647

8,379

8,082

8,579

7,012
1,366

6,840
1,243

7,653
927

633

1
556

557

585

1
664

28,319

Held by:

Accepting banks ..................................................

7,048

7,339

6,214
1,125

7,715

6,708
1,007

11
12

Own bills.........................................................
Bills bought....................................................
Federal Reserve Banks:
Own account....................................... ..........
Foreign correspondents.................................

765

750

13

Others..................................................................

9,975

10,715

13,904

20,638

19,748

21,644

23,478

24,456

25,646

25,829

14
15
16

Based on:
Imports into United States...............................
Exports from United States...............................
All other..............................................................

3,726
4,001
11,000

4,992
4,818
12,713

6,378
5,863
13,209

7,885
6,558
13,876

7,957
6,350
13,644

8,575
6,665
15,339

8,675
7,224
16,245

8,574
7,586
17,540

8,869
7,762
17,118

9,114
7,858
17,365

1 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 Includes all financial company paper sold by dealers in the open
market.




3 As reported by financial companies that place their paper directly
with investors.
4 Includes public utilities and firms engaged primarily in activities such
as communications, construction, manufacturing, mining, wholesale and
retail trade, transportation, and services,

A26

D om estic Fin a n c ia l Statistics □ A p r il 1979

1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans
Percent per annum
Rate

Effective date

Rate

1978—Jan. 10............

8

1978—Sept. 15...........
28...........

9Vi

May

5...........
26...........

00 00

Effective date

June 16...........
30...........

SV4
9

Aug. 31............

9Va

m

Oct. 13...........
27...........

10

Nov.

1...........
6...........
17...........
24...........

10*4
10ft
11
11%

Dec. 26...........

11%

W a

Month

Average
rate

Month

Average
rate

1977—June.....................
July......................
Aug......................
Sept......................
Oct.......................
Nov......................
Dec.......................

6.75
6.75
6.83
7.13
7.52
7.75
7.75

1978—Jan.......................
Feb.......................
Mar......................
Apr......................

7.93
8.00
8.00
8.00

1978—May.................
June.....................
July......................
Aug ..........
Sept......................
Oct.......................
Nov....................
Dec.

8.27
8.63
9.00
9.01
9.41
9.94
10.94
11.55

1979—j an.......................
Feb.......................
Mar......................

11.75
11.75
11.75

1.35 TERMS OF LENDING AT COMMERCIAL BANKS

Item

Survey of Loans Made, February 5-10, 1979
Size of loan (in thousands of dollars)

All
sizes
1-24

25-49

50-99

100-499

1,000
and over

500-999

Short-term commercial and industrial loans
1
2
3
4

Amount of loans (thousands of dollars).........
Number of loans...............................................
Weighted-average maturity (months)..............
Weighted-average interest rate (percent per
annum).......................................................
5 Interquartile range i ......................................
Percent of amount of loans:
6 With floating rate..........................................
7 Made under commitment.............................

8
9
10
11

Amount of loans (thousands of dollars).........
Number of loans...............................................
Weighted-average maturity (months)..............
Weighted-average interest rate (percent per
annum).......................................................
12 Interquartile range1......................................
Percentage of amount of loans:
13 With floating rate..........................................
14 Made under commitment.............................

6,849,553
144,174
3.2

764,236
106,536
3.3

572,350
17,073
3.3

582,423
9,420
3.7

1,571,248
8,982
3.3

639,108
1,025
3.3

2,720,187
1,137
2.8

12.14
12.01
12.27
12.83
12.55
12.63
11.99
11.51-13.10 10.47-13.52 10.75-13.25 11.75-14.20 11.89-13.37 12.00-13.28 11.50-12.45
29.0
20.3

50.1
46.4

1,081,529
16,416
47.6

39.6
24.1

45.9
47.6

56.9
55.3

61.8
57.5

Long-term commercial and industrial loans
----------- ---- ✓
242,097
205,214
14,943
1,111
36.7
51.0

96,688
154
57.2

537,530
207
49.6

12.01
11.50-13.15

11.83
10.47-13.16

61.7
55.4

25.8
29.3

36.8
37.5

12.02
12.25
11.93
11.57-13.15 11.75-12.50 11.50-13.25
71.4
61.0

52.5
41.9

79.6
71.2

Construction and land development loans
15
16
17
18
19
20
21
22
23
24
25

Amount of loans (thousands of dollars).........
Number of loans...............................................
Weighted-average maturity (months)...............
Weighted-average interest rate (percent per
annum).......................................................
Interquartile range1......................................
Percentage of amount of loans:
With floating rate..........................................
Secured by real estate....................................
Made under commitment.............................
Type of construction: 1- to 4-family............
Multifamily...............
Nonresidential..........

591,415
15,222
7.8

94,199
11,013
8.4

63,486
1,918
5.4

93,408
1,520
2.8

122,193
639
7.8

218,129
133
10.4

11.79
11.22
12.15
12.00
12.43
10.21-13.37 10.00-12.55 10.16-13.69 10.50-12.68 11.05-13.75

11.48
9.95- 13.00

44.2
92.4
59.3
40.9
15.8
43.2
All
sizes

22.6
84.1
49.1
62.0
2.9
35.2

1-9

24.8
92.9
48.1
80.1
3.3
16.5

10-24

20.2
97.4
71.7
82.3
4.0
13.7

25-49

53.8
93.8
56.3
38.4
16.7
44.9

50-99

64.1
92.9
63.2
4.1
29.6
66.2

100-249

250
and over

Loans to farmers
26
27
28
29
30
31
32
33
34
35

Amount of loans (thousands of dollars)..........
Number of loans................................................
Weighted-average maturity (months)...............
Weighted-average interest rate (percent per
annum).......................................................
Interquartile range1.......................................
By purpose of loan:
Feeder livestock.........................................
Other livestock..........................................
Other current operating expenses.............
Farm machinery and equipment..............
Other...........................................................

968,124
62,545
7.8

154,312
43,081
8.4

159,679
11,189
10.7

11.01
10.00-11.83

10.34
9.50-11.00

10.40
9.73-11.00

11.10
11.23
10.88
10.28
11.23

10.35
10.47
10.31
10.23
10.42

10.18
10.87
10.42
10.25
10.83

1 Interest rate range that covers the middle 50 percent of the total
dollar amount of loans made.




154,817
4,553
8.0

166,626
2,411
8.0

137,522
996
6.1

195,168
315
5.1

10.37
10.69
11.69
12.33
9.61-11.00 10.00-11.00 11.00-12.49 11.00-13.50
10.54
10.53
10.33
10.10
10.28

10.60
10.71
10.78
( 2)

10.66

11.33
( 2)
(2)

11.65
12.61

2 Fewer than 10 sample loans,
N ote. For more detail, see the board’s 416 statistical release.

12.86
( 2)

12.07
(2)
11.81

Securities Markets
1.3 6

IN T E R E S T R A T E S

A ll

M o n e y a n d C a p ita l M a r k e ts

Averages, per cent per annum

Instrument

1976

1977

1978

1979

1978
Dec.

Jan.

Feb.

1979, week ending—
Mar.

Mar. 3 Mar. 10 Mar. 17 Mar. 24 Mar. 31

Money market rates
1 Federal funds1..............................................

5.05

5.54

7.94

10.03

10.07

10.06

10.09

10.06

10.07

10.21

10.09

10.00

Prime commercial paper2*3
2 9 0 -to 119-day...........................................
3 4- to 6-month...........................................

5.24
5.35

5.54
5.60

7.94
7.99

10.37
10.43

10.25
10.32

9.95
10.01

9.90
9.96

9.96
10.03

9.95
10.01

9.98
10.03

9.90
9.95

9.76
9.81

4 Finance company paper, directly placed,
3- to 6-month3-4...................................

5.22

5.49

7.78

10.06

10.10

9.85

9.73

9.84

9.84

9.85

9.70

9.51

5.59

8.11

10.55

10.29

10.01

9.94

10.03

9.97

10.00

9.97

9.82

5 Prime bankers acceptances, 90-day3-5.......

5.19

Large negotiable certificates of deposit
3-month, secondary market6...................

5.26

5.58

8.20

10.72

10.51

10.18

10.13

10.14

10.16

10.20

10.09

9.99

7 Eurodollar deposits, 3-month7..................

5.57

6.05

8.74

11.62

11.16

10.79

10.64

10.61

10.64

10.74

10.63

10.54

U.S. government securities
Bills:3-8
Market yields:
3-month............................................
6-month............................................
1-year................................................
Rates on new issue:9
3-month............................................

4.98
5.26
5.52

5.27
5.53
5.71

7.19
7.58
7.74

9.08
9.36
9.44

9.35
9.47
9.54

9.32
9.41
9.39

9.48
9.47
9.38

9.44
9.50
9.50

9.44
9.45
9.40

9.51
9.51
9.43

9.54
9.47
9.37

9.46
9.43
9.29

4.989
5.266

5.265
5.510

7.221
7.572

9.122
9.397

9.351
9.501

9.265
9.349

9.457
9.458

9.451
9.498

9.364
9.415

9.475
9.457

9.498
9.483

9.498
9.437

10.22 10.11

6

8
9
10
11

Capital market rates

13
14
15
16
17
18
19
20

21
22
23
24
25

Government notes and bonds
U.S. Treasury
Constant maturities:10
1-year.........................
2-year.........................
3-year.........................
5-year.........................
7-year.........................
10-year.......................
20-year.......................
30-year.......................
Notes and bonds maturing in— 11
3 to 5 years.................................
Over 10 years (long-term)..........
State and local:
Moody’s series12
Aaa...................
Baa.....................
Bond Buyer series1
Corporate bonds
Seasoned issues14
All industries.......
By rating groups:
Aaa...................
A a.....................
A .......................
Baa...................

31
32
33
34

Aaa utility bonds:15
New issue.....................
Recently offered issues.
Dividend/price ratio
Preferred stocks.
Common stocks.

6.77
7.18
7.42
7.61
7.86

6.09
6.45
6.69
6.99
7.23
7.42
7.67

8.34
8.34
8.29
8.32
8.36
8.41
8.48
8.49

10.30
9.72
9.33
9.08
9.03
9.01
8.90

10.41
9.86
9.50
9.20
9.14
9.10
8.98
8.94

10.24
9.72
9.29
9.13
9.11
9.10
9.03
9.00

10.25
9.79
9.38
9.20
9.15
9.12
9.08
9.03

10.36
9.89
9.45
9.28
9.22
9.18
9.12
9.08

10.30
9.80
9.39
9.20
9.13
9.11
9.08
9.03

10.31
9.82
9.39
9.20
9.16
9.12
9.07
9.03

6.94
6.78

6.85
7.06

8.30
7.89

9.23
8.36

9.36
8.43

9.16
8.43

9.25
8.45

9.32
8.49

9.24
8.45

5.66
7.49
6.64

6.12

5.20

5.68

5.52
6.27
6.03

5.91
6.76
6.51

5.95
7.14
6.47

5.66
6.75
6.31

5.82
6.41
6.33

5.80
6.40
6.42

9.01

8.43

9.07

9.49

9.65

9.63

9.76

8.43
8.75
9.09
9.75

8.02

8.24
8.49
8.97

8.73
8.92
9.12
9.45

9.16
9.33
9.53
9.94

9.25
9.48
9.72
10.13

9.26
9.50
9.68
10.08

9.37
9.61
9.81
10.26

8.48
8.49

8.19
8.19

8.96
8.97

9.28
9.41

9.54
9.51

9.53
9.56

7.97
3.77

7.60
4.56

8.25
5.28

8.84
5.39

8.79
5.29

8.77
5.43

5.8

1 Weekly figures are 7-day averages of daily effective rates for the week
ending Wednesday; the daily effective rate is an average of the rates on
a given day weighted by the volume of transactions at these rates.
2 Beginning Nov. 1977, unweighted average of offering rates quoted
by five dealers. Previously, most representative rate quoted by those
dealers.
3 Yields are quoted on a bank-discount basis.
4 Averages of the most representative daily offering rates published by
finance companies for varying maturities in this range.
5 Average of the midpoint of the range of daily dealer closing rates
offered for domestic issues.
6 Weekly figures (week ending Wednesday) are 7-day averages of the
daily midpoints as determined from the range of offering rates; monthly
figures are averages of total days in the month. Beginning Apr. 5, 1978,
weekly figures are simple averages of offering rates.
7 Averages of daily quotations for the week ending Wednesday.
8 Except for new bill issues, yields are computed from daily closing
bid prices.




9.79
9.38
9.21
9.15
9.12
9.08
9.03

9.72
9.33
9.18
9.13
9.09
9.05
9.01

9.24
8.45

9.24
8.45

9.23
8.43

5.80
6.30
6.35

5.80
6.40
6.30

5.80
6.55
6.29

5.90
6.40
6.28

9.73

9.75

9.76

9.78

9.77

9.36
9.59
9.74

10.21

9.35
9.61
9.79
10.23

9.38
9.61
9.81
10.24

9.38
9.62
9.83
10.28

9.35
9.61
9.84
10.28

9.62
9.63

9.64
9.67

9.61
9.60

9.65

9.64
9.63

9.60
9.62

8.77
5.39

8.78
5.55

8.81
5.44

8.73
5.38

8.73
5.32

8.78
5.28

9 Rates are recorded in the week in which bills are issued.
10 Yields on the more actively traded issues adjusted to constant
maturities by the U.S. Treasury, based on daily closing bid prices.
11 Unweighted averages for all outstanding notes and bonds in maturity
ranges shown, based on daily closing bid prices. “Long-term” includes
all bonds neither due nor callable in less than 10 years, including a num­
ber of very low yielding “flower” bonds.
12 General obligations only, based on figures for Thursday, from
Moody’s Investors Service.
13 Twenty issues of mixed quality.
14 Averages of daily figures from Moody’s Investors Service.
15 Compilation of the Board of Governors of the Federal Reserve
System.
Issues included are long-term (20 years or more). New-issue yields
are based on quotations on date of offering; those on recently offered
issues (included only for first 4 weeks after termination of underwriter
price restrictions), on Friday close-of-business quotations.

A28

D om estic F inan cial Statistics □ A p r il 1979

1.37 STOCK MARKET Selected Statistics
1978
Indicator

1976

1978

1977

Sept.

Oct.

1979

Nov.

Dec.

Jan.

Feb.

Mar.

55.76
61.31
43.69
38.79
57.59

55.06
60.42
42.27
39.22
56.09

56.18
61.89
43.22
38.94
57.65

Prices and trading (averages of daily figures)
Common stock prices
1 New York Stock Exchange (Dec. 31,1965 = 50).
2
3
4 Utility......................................................
5

54.45
60.44
39.57
36.97
52.94

6 Standard & Poor’s Corporation (1941-43 = 10)1.. 102.01

53.67
57.84
41.07
40.91
55.23

53.76
58.30
43.25
39.23
56.74

58.58
64.23
50.19
39.82
63.22

56.40
61.60
46.70
39.44
60.42

52.74
57.50
41.80
37.88
54.95

53.69
58.72
42.49
38.09
55.73

98.18

96.11

103.86

100.58

94.71

96.10

99.70

98.23

100.11

7 American Stock Exchange (Aug. 31,1973 = 100).

101.63

116.18

144.56

170.95

160.14

144.17

149.94

159.26

160.92

171.51

Volume of trading (thousands of shares)
8 New York Stock Exchange...................
9 American Stock Exchange....................

21,189
2,565

20,936
2,514

28,591
3,922

33,612
5,740

31,020
4,544

24,505
3,304

24,622
3,430

27.988
3.150

25,037
2,944

29,536
4,105

Customer financing (end-of-period balances, in millions of dollars)
10 Regulated margin credit at brokers/dealers2........
11 Margin stock3....................................................
12 Convertible bonds...................................... .......
13 Subscription issues......................................

8,166
7,960
204
2

9,993
9,740
250
3

11,035
10,830
205
1

12,626
12,400
225
1

12,307
12,090
216
1

11,209
11,000
209

11,035
10,830
205
1

10,955
10,750
204
1

10,989
10,790
195
4

Memo: Free credit balances at brokers4
Margin-account.......................................... .......
Cash-account.............................................. .......

585
1,855

640
2,060

835
2,510

825
2,655

885
2,465

790
2,305

835
2,510

810
2,565

775
2,430

14
15

1

Margin-account debt at brokers (percentage distribution, end of period)
16 Total.......................................................................

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

By equity class (in percent):5
Under 40.............................................................
40-49............................................................. .
50-59............................................................. .
60-69............................................................. .
70-79............................................................. .
80 or more.................................................... .....

12.0
23.0
35.0
15.0
8.7
6.0

18.0
36.0
23.0
11.0
6.0
5.0

33.0
28.0
18.0
10.0
6.0
5.0

15.0
36.0
23.0
13.0
7.0
6.0

47.0
20.0
15.0
8.0
5.0
5.0

32.0
27.0
20.0
10.0
6.0
5.0

33.0
28.0
18.0
10.0
6.0
5.0

21.0
32.0
22.0
12.0
7.0
6.0

29.0
31.0
18.0
11.0
6.0
5.0

17
18
19
20
21
22

n.a.

Special miscellaneous-account balances at brokers (end of period)
23 Total balances (millions of dollars)6. .
Distribution by equity status (percent)
Net credit status...............................
Debit status, equity of—
25
60 percent or more......................
26
Less than 60 percent...................

24

8,776

9,910

41.3

43.4

47.8
10.9

44.9
11.7
Margin requirements (percent of market value)7
Effective date

27 Margin stocks
28 Convertible bonds
29 Short sales...........

Mar. 11, 1968

June 8, 1968

May 6, 1970

Dec. 6, 1971

Nov. 24, 1972

Jan. 3, 1974

70
50
70

80
60
80

65
50
65

55
50
55

65
50
65

50
50
50

1 Effective July 1976, includes a new financial group, banks and in­
surance companies. With this change the index includes 400 industrial
stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public
utility (formerly 60), and 40 financial.
2 Margin credit includes all credit extended to purchase or carry
stocks or related equity instruments and secured at least in part by stock.
Credit extended is end-of-month data for member firms of the New York
Stock Exchange.
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 A distribution of this total by equity class is shown on lines 17-22.
4 Free credit balances are in accounts with no unfulfilled commitments
to the brokers and are subject to withdrawal by customers on demand.




5 Each customer’s equity in his collateral (market value of collateral
less net debit balance) is expressed as a percentage of current collateral
values.
6 Balances that may be used by customers as the margin deposit re­
quired 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.
7 Regulations G, T, and U of the Federal Reserve Board of Governors,
prescribed in accordance with the Securities Exchange Act or 1934,
limit the amount of credit to purchase and carry margin stocks that may
be extended on securities as collateral by prescribing a maximum loan
value, which is a specified percentage of the market value of the collateral
at the time the credit is extended. Margin requirements are the difference
between the market value (100 percent) and the maximum loan value. The
term “margin stocks” is defined in the corresponding regulation.

Thrift Institutions
1.38

S A V IN G S IN S T IT U T IO N S
Millions o f dollars, end o f period

1975

A 29

S e le c te d A s s e ts a n d L ia b ilitie s

1976

1978

1977
June

Account

July

Aug.

Sept.

1979
Oct.

Nov.

Dec.

Jan.

Feb

p

Savings and loan associations9
1 Assets..................................... 338,233 391,907 459,241 491,576 498,301 504,298 508,977 515,352

520,677 523,649 529,820 534,180

2 Mortgages............................. 278,590 323,005 381,163 407,965 411,956 416,677 420,971 425,236
3 Cash and investment
securities1........................... 30,853 35,724 39,150 41,505 43,627 44,188 43,987 45,577
28,790 33,178 38,928 42,106 42,718 43,433 44,019 44,539

429,420 432,858 435,460 437,924
45,869 44,855
45,388 45,936

47,653
46,707

49,003
47,253

5 Liabilities and net worth........ 338,233 391,907 459,241 491,576 498,301 504,298 508,977 515,352

520,677 523,649 529,820 534,180

285,743 335,912 386,800 408,586 411,660 413,972 420,405 423,050

425,207 431,009 435,752 438,626

20,634

8

FHLBB..............................

10 Loans in process...................
11 Other......................................

13 Memo: Mortgage loan com­
mitments outstanding3..

17,524
3,110
5,128
6,949

19,083

27,840

15,708
3,375
6,840
8,074

19,945
7,895
9,911
9,506

19,779

21,998

10,673

14,826

34,270

35,730

37,219

24,875
9,395
11,632
10,046

26,151
9,579
11.540
11,972

27,363
9,856
11,422
13,906

25,184

27,042

27,399

27,779

19,875

22,927

22,393

22,047

38,595

28,632
9,963
11,222
10,676

39,873

r40,981 42,960

42,368

41, 381

29,456
10,417
11,165
12,832

r30,322 31,990
10,659 10,970
11,315 10,737
14,666 9,918

28,079

28,432

28,808 29,025

29,284

29,635

21,648

21,503

20,738 '18,911

18,174

18,174

31,758
10,610
10,445
11,971

30,997
10,384
10,295
14,243

Mutual savings banks10
14 Assets..................................... 121,056 134,812 147,287 153,175 154,315 155,210 156,110 156,843
Loans:

77,221
4,023
Other..................................
Securities:
17 U.S. government.............. 4,740
18 State and local government. 1,545
19 Corporate and other4....... 27,992
2,330
3,205
21 Other assets...........................
16

157,436 158,185 158,910

81,630
5,183

88,195
6,210

91,555
7,771

92,230
8,207

92,866
8,379

93,403
8,418

93,903
8,272

94,497 95,205
7,921 7,176

95,582
7,729

5,840
2,417
33,793
2,355
3,593

5,895
2,828
37,918
2,401
3,839

5,304
3,008
39,427
2,163
3,946

5,269
3,025
39,639
2,029
3,915

5,210
3,098
39,592
2,080
3,985

5,172
3,180
39,639
2,293
4,006

5,105
3,190
39,651
2,735
3,988

5,035 4,950
3,307 3,335
39,679 39,759
3,033 3,730
3,962 4,031

4,811
3,328
40,044
3,332
4,085

22 Liabilities............................... 121,056 134,812 147,287 153,175 154,315 155,210 156,110 156,843

157,436 158,185 158,910

23
24
25
26
27
28
29
30

141,155 142,629 142,854

Deposits ................................. 109,873 122,877 134,017 138,709 139,128 139,308 140,816 141,026

Regular^........................... 109,291 121,961 132,744 137,089 137,430 137,690 139,068 139,422
Ordinary savings............ 69,653 74,535 78,005 77,321 76,116 75,578 75,423 74,124
Time and other.............. 39,639 47,426 54,739 59,768 61,313 62,112 63,645 65,298
582
916
1,272
1,619
Other..................................
1,698
1,604
1,620
1,747
3,292
2,755
2,884
5,040
Other liabilities.....................
3,969
4,636
5,246
4,570
9,052
9,978 10,497 10,551 10,654 10,725 10,777
General reserve accounts.. . .
8,428
Memo : Mortgage loan com­
mitments outstanding6. . 1,803
2,439
4,066
4,872
4,789
4,843
4,958
4,561

139,853
72,398
67,299
1,458
5,411
10,870
4,823

n.a.

141,089 141,355
71,702 70,540
69,387 70,815
1,540
1,499
4,666
5,090
10,891
10,967
4,400

4,366

Life insurance companies11
289,304 321,552 351,722 369,879 374,415 378,124 381,050 382,446
Securities:
33
34
35

United States7...............
State and local...............
Foreign*.........................

13,758

4,736
4,508
4,514

17,942

5,368
5,594
6,980

19,553

5,315
6,051
8,187

19,401

4,984
5,943
8,474

19,447

5,006
5,925
8,516

19,563

5,155
5,884
8,524

19,638

5,156
6,001
8,481

19,757

5,183
6,035
8,539

135,317 157,246 175,654 188,500 192,112 194,620 196,152 195,883

107,256 122,984 141,891 153,812 156,207 157,888 159,972 161,347
28,061 34,262 33,763 34,688 35,905 36,732 36,180 34,536

40 Real estate.............................
42 Other assets...........................

89,167
9,621
24,467
16,971

91,552
10,476
25,834
18,502

96,848 100,040 100,596 101,602 102,365 103,161
11,060 11,540 11,562 11,538 11,583 11,693
27,556 28,649 28,843 29,067 29,290 29,521
21,051 21,749 21,855 21,734 22,022 22,431

385,562 389,021 393,402
19,711

4,934
6,235
8,542

19,579

4,795
6,250
8,534

19,829

5,049
6,236
8,544

197,615 197,342 201,061

162,835 161,923 165,552
34,780 35,419 35,509

104,106
11,707
29,818
22,605

n.a.

105,932 106,397
11,776 11,841
30,202 30,506
24,190 23,768

Credit unions
43 Total assets/liabilities and

46 Loans outstanding.................

50
51

Federal (shares).................
State (shares and deposits).

38,037
20,209
17,828

45,225
24,396
20,829

54,084
29,574
24,510

28,169

34,384

42,055

47,118

59,152
32,679
26,473

60,141
33,315
26,826

60,909
33,718
27,191

61,465 62,595
34,093 34,681
27,372 27,914

61,756
34,165
27,591

47,620

49,103

50,121

26,840
22,263

50,549

51,264 51,807

51,526

27,510
22,611

27,697
22,852

28,176 28,583
23,088 23,224

28,340
23,186

52,867

52,468

52,600 53,048

22,717
19,338

25,762
21,356

33,013

39,173

46,832

52,076

51,551

51,772

17,530
15,483

21,130
18,043

28,903
23,173

28,627
22,924

28,779
22,993

25,849
20,983

6i, i n

34,058
27,219

25,970
21,650

18,311
16,073

14,869
13,300

For notes see bottom o f page A30.




59,381
32,793
26,588

29,429
23,438

29,086
23,382

29,163 29,326
23,437 23,722

51,916

28,427
23,489

n.a.

A30

D om estic F in an cial Statistics □ A p r il 1979

1.39 FEDERAL FISCAL AND FINANCING OPERATIONS
Millions of dollars

Type of account or operation

1
2
3
4

U.S. budget
Receipts1..........................................
Outlays1............................................
Surplus, or deficit ( —) ..................
Trust funds...................................

6
7

Off-budget entities surplus, or
deficit ( —)
Federal Financing Bank outlays. . .
Other3...............................................

U.S. budget plus off-budget, in­
cluding Federal Financing Bank
Surplus, or deficit ( —) .....................
Financed by:
9
Borrowing from the public..........
10
Cash and monetary assets (de­
crease, or increase ( —))........
11
Other 4..........................................
8

Memo items :
12 Treasury operating balance (level, end
of period)......................................
13
Federal Reserve Banks....................
14 Tax and loan accounts....................

Transition
quarter
(JulySept.
1976)

Calendar year
Fiscal
year
1977

Fiscal
year
1978

1977
H2

81,772
94,729

357,762
402,725

401,997
450,836

175,820
216,781

-1 2 ,9 5 6

-4 4 ,9 6 3

-4 8 ,8 3 9

-4 0 ,9 6 1

1978
HI

210,650
222,518

-1 1 ,8 7 0

1978
H2

Dec.

206,275
238,150

37,477
41,392

- 3 1 ,8 7 5

- 3 ,9 1 5

1979
Jan.

38,364
41,095

-2 ,7 3 1

Feb.

32,639
37,739
-5 ,1 0 0

-1 ,9 5 2
-11,004

7,833
-52,796

12,693
-61,532

4,293
-45,254

4,334
-16,204

11,755
-43,630

1,833
-5 ,7 4 8

-3,971
1,240

2,188
-7 ,2 8 8

-2 ,5 6 4
779

-8,201
-483

-10,614
287

-6 ,6 6 3
428

-5 ,1 0 5
-790

-5 ,0 8 2
1,841

-1 ,1 7 8
453

-693
-2 7 2

-995
62

-1 4 ,7 4 1

-5 3 ,6 4 7

-5 9 ,1 6 6

-4 7 ,1 9 6

-1 7 ,7 6 5

-3 5 ,1 1 7

-4 ,6 4 0

-3 ,6 9 6

- 6 ,0 3 3

18,027

53,516

59,106

40,284

23,374

30,308

3,533

3,312

-668

-2 ,8 9 9
-387

-2,2 3 8
2,369

-3,0 2 3
3,083

4,317
2,597

-5 ,0 9 8
-511

3,381
1,428

-2 ,3 2 3
3,430

-227
611

8,179
-1 ,4 7 8

17,418
13,299
4,119

19,104
15,740
3,364

22,444
16,647
5,797

12,274
7,114
5,160

17,526
11,614
5,912

16,291
4,196
12,095

16,291
4,196
12,095

15,146
3,522
11,624

6,887
3,443
3,444

1 Effective June 1978, earned income credit payments in excess of
an individual’s tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976,.
2 Half years calculated as a residual of total surplus/deficit and trust
fund surplus/deficit.
3 Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural
Electrification and Telephone Revolving Fund; and Rural Telephone
Bank.
4 Includes accured interest payable to the public; deposit funds; mis­

cellaneous liability (including checks outstanding) and asset accounts;
seignorage; increment on gold; net gain/loss for U.S. currency valuation
adjustment; net gain/loss for IMF valuation adjustment; and profit on
the sale of gold.
Source. “Monthly Treasury Statement of Receipts and Outlays of
the U.S. Government,” Treasury Bulletin, and the Budget o f the United
States Government, Fiscal Year 1980.

NOTES TO TABLE 1.38
1 Holdings of stock of the Federal Home Loan Banks are included in
“other assets.”
2 Includes net undistributed income, which is accrued by most, but not
all, associations.
3 Excludes figures for loans in process, which are shown as a liability.
4 Includes securities of foreign governments and international organiza­
tions and nonguaranteed issues of U.S. government agencies.
5 Excludes checking, club, and school accounts.
6 Commitments outstanding (including loans in process) of banks in
New York State as reported to the Savings Banks Association of the
State of New York.
7 Direct and guaranteed obligations. Excludes federal agency issues
not guaranteed, which are shown in this table under “business” securities.
8 Issues of foreign governments and their subdivisions and bonds of the
International Bank for Reconstruction and Development.
9 Data reflect benchmark revisions back to 1977.
10 Data for June, July, and August 1978 have been revised.
11 Data for 1977 and the first 6 months of 1978 have been revised by
the American Council of Life Insurance.




Note. Savings and loan associations • Estimates by the FHLBB for
all associations in the United States. Data are based on monthly reports
of federally insured associations and annual reports of other associations.
Even when revised, data for current and preceding year are subject to
further revision.
Mutual savings banks: Estimates of National Association of Mutual
Savings Banks for all savings banks in the United States. Data are re­
ported on a gross-of-valuation-reserves basis.
Life insurance companies: Estimates of the American Council of Life
Insurance for all life insurance companies in the United States. Annual
figures are annual-statement asset values, with bonds carried on an
amortized basis and stocks at year-end market value. Adjustments for
interest due and accrued and for differences between market and book
values are not made on each item separately but are included, in total, in
“other assets.”
Credit unions: Estimates by the National Credit Union Administration
for a group of federal and state-chartered credit unions that account for
about 30 percent of credit union assets. Figures are preliminary and
revised annually to incorporate recent benchmark data.

Federal Finance
1.40

A 31

U .S . B U D G E T R E C E I P T S A N D O U T L A Y S
Millions o f dollars

Calendar year
Source or type

Transition
quarter
(JulySept.
1976)

Fiscal
year
1977

Fiscal
year
1978

1978
H2

HI

1979
Jan.

Feb.

Receipts
1 All sources1..........................................

81,772

357,762

401,997

175,820

210,650

206,275

37,477

38,364

32,639

2 Individual income taxes , net ................
Withheld.........................................
3
4
Presidential Election Campaign
Fund.......................................
Nonwithheld...................................
5
Refunds1.........................................
6
7 Corporation income taxes
8
Gross receipts.................................
9
Refunds...........................................
10 Social insurance taxes and contribu­
tions, net .....................................
11
Payroll employment taxes and
contributions 2 ........................
12
Self-employment taxes and
contributions 3 .......................
13
Unemployment insurance..............
14
Other net receipts 4.......................

38,800

157,626

82,911

90,336

98,854

32,949

144,820

180,988

16,066

23,667

14,509

1
6,809
958

37
42,062
29,293

9,808
1,348

15
16
17
18

Excise taxes.........................................
Customs deposits................. .............
Estate and gift taxes.........................
Miscellaneous receipts 5....................

75,480

82,784

39
47,804
32,070

1
9,397
1,967

36
37,584
30,068

3
10,777
2,075

830
219

7,866
42

5
1,037
2,825

60,057
5,164

65,380
5,428

25,121
2,819

38,496
2,782

28,536
2,757

10,769
382

2,539
392

1,706
424

25,760

108,683

123,410

52,347

66,191

61,064

7,716

9,429

13,614

21,534

88,196

99,626

44,384

51,668

51,052

7,059

8,098

11,528

269
2,698
1,259

4,014
11,312
5,162

A,261

13,850
5,668

316
4,936
2,711

3,892
7,800
2,831

369
6,727
2,917

174
483

341
478
512

322
1,286
478

4,473
1,212
1,455
1,612

17,548
5,150
7,327
6,536

18,376
6,573
5,285
7,413

9,284
2,848
2,837
3,292

8,835
3,320
2,587
3,667

9,879
3,748
2,691
4,260

1,597
594
386
732

1,520
630
485
486

1,436
527
426
846

165,215

90,148

15,454

15,843

16,292

Outlays 8
19 All types1 ...........................................

94,729

402,725

450,836

216,781

222,518

238,150

41,392

41,095

37,739

20 National defense..............................
21 International affairs.........................
22 General science, space, and
technology.................................
23 Energy..............................................
24 Natural resources and environment
25 Agriculture.......................................

22,307
2,197

97,501
4,813

105,186
5,922

50,873
2,896

52,979
2,904

55,129

2,221

9,450
339

9,304
550

8,803
460

1,161
794
2,532
581

4,677
4,172
5,532

4,742
5,861
10,925
7,731

2,318

10,000

2,395
2,487
4,959
2,353

2,362
4,461
6,119
4,854

407
747
1,125
1,681

421
622
953
1,755

422
904
1,030
762

26 Commerce and housing credit........
27 Transportation.................................
28 Community and regional
development.............................
29 Education, training, employment,
and social services...................
JO Health................................................
31 Income security1..............................

1,392
3,304

-4 4
14,636

3,325
15,444

-946
7,723

3,291
8,758

309
1,374

109
1,419

-553
1,095

J2
53
J4
55
56
57

Veterans benefits and services...........
Administration of justice.................
General government.........................
General-purpose fiscal assistance...,
Interest 6 ..........................................
Undistributed offsetting receipts 6*7

1,340

6,286

11,000

4,924

5,928

6,108

753

800

625

5,162
8,721
32,797

20,985
38,785
137,915

26,463
43,676
146,212

10,800
19,422
71,081

12,792
21,391
75,201

13,676
23,942
73,305

2,210

4,717
12,469

2,467
4,149
12,959

2,075
3,894
13,300

3,962
859
883
2,092
7,216
-2 ,5 6 7

18,038
3,600
3,374
9,499
38,009
-15,053

18,974
3,802
3,777
9,601
43,966
-15,772

9,864
1,723
1,749
4,926
19,962
-8 ,5 0 6

9,603
1,946
1,803
4,665
22,280
-7,9 4 5

9,545
1,973

2,650
309
269
79
7,372
-4 ,8 7 0

757
341
392
1,754
2,860
-516

1,622
352
300
81
4,099
-1 ,5 3 0

1 Effective June 1978, earned income credit payments in excess of an
individual’s tax liability, formerly treated as income tax refunds, are
classified as outlays retroactive to January 1976.
2 Old-age, disability and hospital insurance, and railroad retirement
accounts.
3 Old-age, disability, and hospital insurance.
4 Supplementary medical insurance premiums, federal employee re­
tirement contributions, and Civil Service retirement and disability fund.
5 Deposits of earnings by Federal Reserve Banks and other miscel­
laneous receipts.
6 Effective September 1976, “Interest” and “Undistributed Offsetting




"5 A ll

2,111

4,385
24,110

-8,200

Receipts” reflect the accounting conversion for the interest on special
issues for U.S. government accounts from an accrual basis to a cash basis.
7 Consists of interest received by trust funds, rents and royalties on
the Outer Continental Shelf, and U.S. government contributions for
employee retirement.
8 For some types of outlays the categories are new or represent re­
groupings; data for these categories are from the Budget o f the United
States Government, Fiscal Year 1980; data are not available for half-years
prior to 1978.
In addition, for some categories the table includes revisions in figures
published earlier.

A 32
1.41

D om estic F in an c ia l Statistics □ A p r il 1979
FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION
Billions of dollars
1977

1976

1978

Item
Sept. 30

Dec. 31

June 30

Sept. 30

Dec. 31

Mar. 31

June 30

Sept. 30

Dec. 31
797.7

1 Federal debt outstanding.....................

2 646.4

665.5

685.2

709.1

729.2

747.8

758.8

780.4

2 Public debt securities ...........................
3 Held by public.................................
4 Held by agencies..............................

634.7

653.5

698.8

718.9

738.0

488.6
146.1

506.4
147.1

674.4

749. 0

771.5

5 Agency securities ..................................
6 Held by public.................................

11.6
2 9.7
1.9

523.2
151.2

543.4
155.5

564.1
154.8

12.0
10.0
1.9

10.8
9.0
1.8

10.3

8.5
1.8

585.2
152.7

587.9
161.1

10.2
8.4
1.8

9 .9

9 .8

8.1
1.8

603.6
168.0
8 .9

8.0
1.8

7.4
1.5

789.2

619.2
170.0
8 .5

7.0
1.5

8 Debt subject to statutory limit.............

635.8

654.7

675.6

700.0

720.1

739.1

750.2

772.7

790.3

9 Public debt securities...........................
10 Other debt1..........................................

634.1
1.7

652.9
1.7

673.8
1.7

698.2
1.7

718.3
1.7

737.3
1.8

748.4
1.8

770.9
1.8

788.6
1.7

11 Memo: Statutory debt limit................

636.0

682.0

700.0

700.0

752.0

752.0

752.0

798.0

798.0

1 Includes guaranteed debt of government agencies, specified participa­
tion certificates, notes to international lending organizations, and District
of Columbia stadium bonds.
2 Gross federal debt and agency debt held by the public increased

$0.5 billion due to a retroactive reclassification of the Export-import Bank
certificates of beneficial interest from loan asset sales to debt, effective
July 1, 1975.
Note. Data from Treasury Bulletin (U.S. Treasury Department).

1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership
Billions of dollars, end of period

Type and holder

1974

1975

1976

1978

1977
Nov.

492.7
By type
4

Bills....................................................................

576.6

653.5

575.7

652.5

715.2

782.0

782.4

363.2

421.3

459.9

493.3

487.5

119.7
129.8
33.4

157.5
167.1
38.6

164.0
216.7
40.6

161.1
251.8
47.0

161.5
271.7
60.1

161.7
265.8
60.0

2.2
24.1
26.6
26.6
0
80.7
154.8

2.2
24.3
'29.6
28.0
1.6
80.9
157.5

255.3

State and local government series...................
Foreign issues 3..................................................
Government...............................................
Public..........................................................
Savings bonds and notes..................................

2.3
4.5
22.3
22.3
0
72.3
129.7

2.2
13.9
22.2
22.2
0
77.0
139.8

15 Non-interest-bearing debt.....................................

1.1

1.0

1.1

3.7

1.0

138.2
80.5

139.1
89.8

147.1
97.0

154.8
102.5

271.0
55.6
2.5
6.2
11.0
29.2

349.4
85.1
4.5
9.5
20.2
34.2

409.5
103.8
5.9
12.7
27.7
41.6

63.4
21.5

67.3
24.0

58.8
22.8

66.5
38.0

Individuals:
Savings bonds................................................

27

Other miscellaneous investors7........................

1 Includes (not shown separately): Securities issued to the Rural
Electrification Administration, depositary bonds, retirement plan bonds
and individual retirement bonds.
2 These nonmarketable bonds, also known as Investment Series B
Bonds, may be exchanged (or converted) at the owner’s option for 1Vi
percent, 5-year marketable Treasury notes. Convertible bonds that have
been so exchanged are removed from this category and recorded in the
notes category above.
3 Nonmarketable dollar-denominated and foreign currency denomin­
ated series held by foreigners.
4 Held almost entirely by U.S. government agencies and trust funds.
5 Data for Federal Reserve Banks and U.S. government agencies and
trust funds are actual holdings; data for other groups are Treasury
estimates.




792.2

282.9

231.2

24

790.5

491.6

2.3
1.2
21.6
21.6
0
67.9
119.4

Mutual savings banks.......................................
Insurance companies.........................................
Other corporations...........................................

Feb.

789.2

212.5

20
21
22

Jan.

783.0

2.3
.6
22.8
22.8
0
63.8
119.1

By holder^
16 U.S. government agencies and trust funds........

Dec.

718.9

208.7

9
10
11
12
13

1979

288.7

294.8

789.5

791.2

496.5

498.0

293.0

293.3

162.3
272.8
61.4

162.4
271.4
64.2
2.2

Mar.
796.8
792.3
500.4

165.5
270.8
64.1

8 291.9
2.2

2.2
24.2
'30.3
27.5
2.8
80.8
155.2

'28.2
25.4
2.8
iJO.8
157.6

28.2
24.0
4.2
80.8
153.8

6.8

1.0

1.0

4.4

167.4
113.3

170.0
109.6

167.7
101.3

461.3
101.4
5.9
15.1
22.7
55.2

502.3
93.5
5.3
15.1
20.9
69.1

508.6
93.4
5.2
15.0
20.6
68.6

521.4
95.0
5.2
15.1
22.5
67.9

72.0
28.8

76.7
28.6

80.5
29.8

80.7
30.0

80.6
30.4

78.1
38.9

109.6
46.1

132.4
55.8

137.8
r57.4

142.2
62.5

24.2

n.a.

2 4.2

n.a.

6 Consists of the investments of foreign balances and international
accounts in the United States. Beginning with July 1974, the figures exclude
non-interest-bearing notes issued to the International Monetary Fund.
7 Includes savings and loan associations, nonprofit institutions, cor­
porate pension trust funds, dealers and brokers, certain government
deposit accounts, and government sponsored agencies.
8 Includes a nonmarketable Federal Reserve special certificate for $2.6
billion.
N ote. Gross public debt excludes guaranteed agency securities and,
beginning in July 1974, includes Federal Financing Bank security issues.
Data by type of security from Monthly Statement o f the Public Debt o f
the United States (U.S. Treasury Department); data by holder from
Treasury Bulletin.

Federal Finance
1.43

U .S . G O V E R N M E N T M A R K E T A B L E S E C U R I T I E S

A 33

O w n e r sh ip , b y m a tu r ity

Par value; millions o f dollars, end o f period

Type of holder

1976

1977

1978

1979

Dec.

Jan.

1976

All maturities
1
2 U.S. government agencies and trust funds...........................
3 Federal Reserve Banks...........................................................
4
5
6
7
8
9
10
11

1977

1978

1979

Dec.

Jan.

1 to 5 years

421,276

459,927

487,546

496,529

141,132

151,264

162,886

168,879

16,485
96,971

14,420
101,191

12,695
109,616

12,694
101,279

6,141
31,249

4,788
27,012

3,310
31,283

3,310
31,577

307,820

344,315

365,235

382,556

103,742

119,464

128,293

133,992

78,262
4,072
10,284
14,193
4,576
12,252
184,182

75,363
4,379
12,378
9,474
4,817
15,495
222,409

68,890
3,499
11,635
8,272
3,835
18,815
250,288

67,445
3,457
11,838
8,700
3,983
18,418
268,716

40,005
2,010
3,885
2,618
2,360
2,543
50,321

Total, within 1 year

38,691
2,112
4,729
3,183
2,368
3,875
64,505

38,390
1,918
4,664
3,635
2,255
3,997
73,433

38,191
1,905
4,764
3,667
2,279
3,906
79,281

5 to 10 years

12 All holders................................................................................

211,035

230,691

228,516

230,075

43,045

45,328

50,400

50,396

13 U.S. government agencies and trust funds...........................

2,012
51,569

1,906
56,702

1,488
52,801

1,488
44,310

2,879
9,148

2,129
10,404

1,989
14,809

1,989
14,717

157,454

172,084

174,227

184,211

31,018

32,795
6,162

33,601

33,690

15
16
17
18
19
20
21
22

Nonfinancial corporations..................................................
All others.............................................................................

31,213
1,214
2,191
11,009
1,984
6,622
103,220

29,477
1,400
2,398
5,770
2,236
7,917
122,885

20,608
817
1,838
4,048
1,414
8,194
137,309

19,284
778
1,856
4,385
1,537
7,801
148,637

6,278
567
2,546
370
155
1,465
19,637

Bills, within 1 year

584
3,204
307
143
1,283
21,112

7,490
496
2,899
369
89
1,588
20,671

7,508
496
2,962
345
90
1,605
20,683

10 to 20 years

163,992

161,081

161,747

162,286

11,865

12,906

19,800

21,234

24 U.S. government agencies and trust funds..........................
25 Federal Reserve Banks...........................................................

449
41,279

32
42,004

2
42,397

2
33,959

3,102
1,363

3,102
1,510

3,876
2,088

3,876
2,077

26 Private investors.......................................................................
27 Commercial banks..............................................................
28 Mutual savings banks..........................................................
29 Insurance companies...........................................................
30 Nonfinancial corporations..................................................
31
32 State and local governments..............................................
33 All others.............................................................................

122,264

119,035

119,348

138,325

7,400

8,295

13,836

15,282

17,303
454
1,463
9,939
1,266
5,556
86,282

11,996
484
1,187
4,329
806
6,092
94,152

5,707
150
753
1,792
262
5,524
105,161

4,490
123
770
2,123
303
5,161
115,354

339
139
1,114
142
64
718
4,884

Other, within 1 year

456
137
1,245
133
54
890
5,380

956
143
1,460
86
60
1,420
9,711

1,117
153
1,478
159
61
1,459
10,855

Over 20 years

34 All holders................................................................................

47,043

69,610

66,769

67,789

14,200

19,738

25,944

25,944

35 U.S. government agencies and trust funds..........................
36 Federal Reserve Banks...........................................................

1,563
10,290

1,874
14,698

1,487
10,404

1,487
10,350

2,350
3,642

2,495
5,564

2,031
8,635

2,031
8,599

37
38
39
40
41
42
43
44

35,190

53,039

54,879

55,952

8,208

11,679

15,278

15,315

Commercial banks..............................................................
Mutual savings banks..........................................................
Insurance companies...........................................................
Nonfinancial corporations..................................................
Savings and loan associations............................................
State and local governments..............................................
All others.............................................................................

13,910
760
728
1,070
718
1,066
16,938

Note. Direct public issues only. Based on Treasury Survey of Owner­
ship from Treasury Bulletin (U.S. Treasury Department).
Data complete for U.S. government agencies and trust funds and
Federal Reserve 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 as of Jan. 31, 1979:




15,482
916
1,211
1,441
1,430
1,825
28,733

14,901
667
1,084
2,256
1,152
2,670
32,149

14,794
655
1,086
2,262
1,234
2,640
33,279

427
143
548
55
13
904
6,120

578
146
802
81
16
1,530
8,526

1,446
126
774
135
17
3,616
9,164

1,346
125
111
144
16

3,647
9,260

(1) 5,460 commercial banks 463 mutual savings banks, and 728 insurance
companies, each about 80 percent; (2) 435 nonfinancial corporations and
485 savings and loan associations, each about 50 percent; and (3) 491
state and local governments, about 40 percent.
“All others,” a residual, includes holdings of all those not reporting
in the Treasury Survey, including investor groups not listed separately.

A34

D om estic F inan cial Statistics □ A p r il 1979

1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions
Par value; averages of daily figures, in millions of dollars

Item

1975

1976

1978

1977

1979

1979, week ending Wednesday

Dec.

Jan.

Feb.

Jan. 3

Jan. 10

Jan. 17

Jan. 24

Jan. 31

Feb. 7

1 U.S. government securities.. .

6,027

10,449

10,838

8,838

10,778

11,612

9,824

10,139

9,040

10,030

13,874

13,331

By maturity:
Bills....................................
Other within 1 year..........
1-5 years............................
5-10 years..........................
Over 10 years.....................

3,889
223
1,414
363
138

6,676
210
2,317
1,019
229

6,746
237
2,320
1,148
388

5,336
400
1,676
739
687

6,016
464
2,344
813
1,140

6,261
344
2,595
1,185
1,227

6,502
622
1,569
542
589

6,008
355
1,714
772
1,289

5,248
374
1,668
727
1,023

5,309
356
2,445
791
1,129

7,010
630
3,820
1,102
1,312

7,437
284
3,009
1,446
1,155

By type of customer
U.S. government securities
dealers........................
8 U.S. government securities
brokers.......................
9 Commercial banks............
10 All others1.........................

885

1,360

1,267

954

1,037

1,235

915

1,033

840

1,002

1,361

1,267

1,750
1,451
1,941

3,407
2,426
3,257

3,709
2,295
3,568

3,303
1,514
3,066

4,525
1,599
3,616

4,750
1,764
3,863

3,307
1,745
3,858

4,094
1,599
3,413

3.995
1,314
2,891

4,287
1,417
3,324

5,900
2,031
4,582

5,845
2,196
4,023

11 Federal agency securities. . . .

1,043

1,548

1,729

2,325

2,477

2,351

2,005

2,239

2,480

2,386

3,016

2,383

2
3
4
5
6
7

1 Includes, among others, all other dealers and brokers in commodities
Transactions are market purchases and sales of U.S. government
and securities, foreign banking agencies, and the Federal Reserve System.
securities dealers reporting to the Federal Reserve Bank of New York.
The figures exclude allotments of, and exchanges for, new U.S. government
N ote. Averages for transactions are based on number of trading days
securities, redemptions of called or matured securities, or purchases or
in the period.
sales of securities under repurchase, reverse repurchase (resale), or similar
contracts.

1.45 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing
Par value; averages of daily figures, in millions of dollars

1978
Item

1975

1976

Week ending Wednesday

1979

1977

1978
Dec.

Jan.

Feb.

1979

Dec. 13 Dec. 20 Dec. 27

Jan. 3

Jan. 10

Jan. 17

Positions2
1 U.S. government securities.. .

5,884

7,592

5,172

2,134

3,549

3,077

2,620

2,495

2,067

905

3,254

3,583

2
3
4
5
6

Bills....................................
Other within 1 year..........
1-5 years...........................
5-10 years..........................
Over 10 years....................

4,297
265
886
300
136

6,290
188
515
402
198

4,772
99
60
92
149

1,922
97
-7 3
211
-2 4

3,045
239
115
15
134

3,060
-7 2
-355
152
293

2,704
-5 4
-3 4 7
241
76

2,458
215
-367
236
-4 8

1,060
373
583
174
-123

361
272
367
146
-231

2,420
247
159
87
341

3,143
251
-5 0
41
198

7 Federal agency securities. . . .

939

729

693

370

609

761

296

289

571

356

379

417

Sources of financing3
8 All sources.............................

6,666

8,715

9,877

11,915

13,157

13,370

12,465

12,865

11,896

10,450

11,837

13,141

Commercial banks:
New York City.................
Outside New York City...
Corporations1.......................
All others...............................

1,621
1.466
842
2,738

1,896
1,660
1,479
3,681

1,313
1,987
2,423
4,155

635
2,209
2,890
6,179

2,136
2,367
2,756
5,898

2,189
2,402
2,602
6,176

802
2,430
2,852
6,382

1,242
2,338
3,065
6,220

339
2,321
3,004
6,233

1,142
1,620
2,536
5,152

1,912
2,062
2,818
5,045

1,881
2,425
2,713
6,121

9
10
11
12

1 All business corporations except commercial banks and insurance
companies.
2 New amounts (in terms of par values) of securities owned by nonbank
dealer firms and dealer departments of commercial banks on a commit­
ment, that is, trade-date basis, including any such securities that have
been sold under agreements to repurchase. The maturities of some re­
purchase agreements are sufficiently long, however, to suggest that the
securities involved are not available for trading purposes. Securities
owned, and hence dealer positions, do not include securities purchased
under agreements to resell.
3 Total amounts outstanding of funds borrowed by nonbank dealer




firms and dealer departments of commercial banks against U.S. govern­
ment and federal agency securities (through both collateral loans and sales
under agreements to repurchase), plus internal funds used by bank dealer
departments to finance positions in such securities. Borrowings against
securities held under agreement to resell are excluded where the borrowing
contract and the agreement to resell are equal in amount and maturity,
that is, a matched agreement.
N ote. Averages for positions are based on number of trading days
in the period; those for financing, on the number of calendar days in the
period.

Federal Finance
1 .4 6

F E D E R A L A N D F E D E R A L L Y S P O N S O R E D C R E D IT A G E N C IE S
Millions o f dollars, end o f period

Agency

1975

1976

A 35

D e b t O u tsta n d in g

1978

1977
July

Aug.

Sept.

Oct.

Nov.

Dec.

1 Federal and federally sponsored agencies...........

97,680

103,325

109,924

122,638

123,297

125,397

127,468

129,139

131,982

2 Federal agencies ....................................................

19,046

21,896

22,760

23,286

22,505

23,139

23,279

23,073

23,488

3

Defense Department1.......................................

5
6
7
8

Federal Housing Administration4...................
Government National Mortgage Association
participation certificates5.........................
Postal Service6..................................................
Tennessee Valley Authority.............................

11
12
13

Federal Home Loan Banks.............................
Federal Home Loan Mortgage Corporation..
Federal National Mortgage Association........

15
16
17
18

Federal Intermediate Credit Banks..................
Banks for Cooperatives...................................
Student Loan Marketing Association7............
Other..................................................................

Memo items:
19 Federal Financing Bank debt6,8...........................
Lending to federal and federally sponsored
agencies:

1,220
7,188
564

1,113
7,801
575

983
8,671
581

916
8,596
603
3,666
2,364
6,785
356

3,166
2,364
6,835
357

3,166
2,364
7,045
357

3,166
2,364
7,195
355

3,166
2,364
7,325
356

3,141
2,364
7,460
356

102,258

104,189

106,066

108,494

4,200
1,750
3,915
209

4,120
2,998
5,185
104

3,743
2,431
6,015
336

78,634

81,429

87,164

906
8,274
603

18,345
1,686
31,890
19,118
11,174
4,434
515
2

99,352

16,811
1,690
30,565
17,127
10,494
4,330
410
2

100,792

23,430
1,937
36,900
20,198
11,392
4,788
705
2

24,360
1,937
37,518
20,198
11,482
4,570
725
2

17,154

28,711

38,580

45,550

18,900
1,550
29,963
15,000
9,254
3,655
310
2

897
8,709
601

897
8,704
598

876
8,392
594

868
8,711
588

25,025
2,063
38,353
20,198
11,555
4,317
745
2

25,395
2,063
39,776
20,360
11,554
4,264
775
2

26,777
2,062
39,814
20,360
11,548
4,668
835
2

46,668

48,078

49,212

49,645

51,298

27,563
2,262
41,080
20,360
11,469
4,843
915
2

21
22
23
24

Postal Service6..................................................
Student Loan Marketing Association7...........
Tennessee Valley Authority.............................
United States Railway Association6...............

4,595
1,500
310
1,840
209

5,208
2,748
410
3,110
104

5,834
2,181
515
4,190
336

6,132
2,114
705
4,960
356

6,132
2,114
725
5,010
357

6,568
2,114
745
5,220
357

6,568
2,114
775
5,370
355

6,568
2,114
835
5,500
356

6,898
2,114
915
5,635
356

25
26
27

Other lending:9
Farmers Home Administration.......................
Rural Electrification Administration..............
Other..................................................................

7,000
566
1,134

10,750
1,415
4,966

16,095

21,580
3,684
6,019

22,275
3,919
6,136

22,275
4,192
6,607

23,050
4,407
6.573

23,050
4,489
6,733

23,825
4,604
6,951

1 Consists of mortgages assumed by the Defense Department between
1957 and 1963 under family housing and homeowners assistance programs.
2 Includes participation certificates reclassified as debt beginning
Oct. 1, 1976.
3 Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget
thereafter.
4 Consists of debentures issued in payment of Federal Housing Ad­
ministration insurance claims. Once issued, these securities may be sold
privately on the securities market.
5 Certificates of participation issued prior to fiscal 1969 by the Govern­
ment National Mortgage Association acting as trustee for the Farmers
Home Administration; Department of Health, Education, and Welfare;
Department of Housing and Urban Development; Small Business Ad­
ministration ; and the Veterans Administration.
6 Off-budget.




2,647

6,782

7 Unlike other federally sponsored agencies, the Student Loan
Marketing Association may borrow from the Federal Financing Bank
(FFB) since its obligations are guaranteed by the Department of Health,
Education, and Welfare.
8 The FFB, which began operations in 1974, is authorized to purchase
or sell obligations issued, sold, or guaranteed by other federal agencies.
Since FFB incurs debt solely for the purpose of lending to other agencies,
its debt is not included in the main portion of the table in order to avoid
double counting.
9 Includes FFB purchases of agency assets and guaranteed loans;
the latter contain loans guaranteed by numerous agencies with the
guarantees of any particular agency being generally small. The Farmers
Home Administration item consists exclusively of agency assets, while the
Rural Electrification Administration entry contains both agency assets
and guaranteed loans.

A36

D om estic F inan cial Statistics □ A p r il 1979

1.47 NEW SECURITY ISSUES of State and Local Governments
Millions of dollars
Type of issue or issuer,
or use

1976

1977

1 All issues, new and refunding i . . ..........................................

35,313

46,769

48,607

18,040
17,140

18,042
28,655

i33

Special district and statutory authority............................
Municipalities, counties, townships, school districts. . . .

1978

1978
Oct.

Nov.

Dec.

Jan.

Feb.

2,330

3,244

4,328

3,694

2,799

2,575

17,854
30,658

703
1,620

1,148
2,083

1,168
3,152

1,698
1,992

1,286
1,492

933
1,638

72

95

7

13

8

4

21

4

7,054
15,304
12,845

6,354
21,717
18,623

6,632
24,156
17,718

85
1,599
639

552
1,616
1,061

343
2,848
1,129

497
2,148
1,043

467
940
1,372

580
1,181
810

9 Issues for new capital, total..................................................

32,108

36,189

37,629

2,266

3,160

4,216

3,379

2,770

2,549

Use of proceeds
Education.................................................... ......................
Transportation...................................................................
Utilities and conservation..................................................
Social welfare.............................................. ......................
Industrial aid......................................................................
Other purposes...................................................................

4,900
2,586
9,594
6,566
483
7,979

5,076
2,951
8,119
8,274
4,676
7,093

5,003
3,460
9,026
10,494
3,526
6,120

397
302
695
526
105
241

314
422
831
1,169
249
175

463
259
1,241
817
323
1,113

319
337
705
1,126
276
616

483
248
541
757
264
477

411
207
724
785
171
251

2
3
4
5
6
7
8

10
11
12
13
14
15

Type of issue
Revenue...............................................................................
Housing Assistance Administration 2...............................
Type of issuer

Sept.

1979

Source. Public Securities Association.

1 Par amounts of long-term issues based on date of sale.
2 Only bonds sold pursuant to the 1949 Housing Act, which are secured
by contract requiring the Housing Assistance Administration to make
annual contributions to the local authority.

1.48 NEW SECURITY ISSUES of Corporations
Millions of dollars

Type of issue or issuer,
or use

1975

1976

1978

1977
June

July

Aug.

Sept.

Oct.

Nov.

1 All issues 1....................................

53,619

53,488

54,205

5,215

4,226

3,311

3,832

'3,685

3,207

2 Bonds............................................ .

42,756

42,380

42,193

3,810

3,718

2,529

2,905

'2,516

2,481

Type of offering
3 Public........................................
4
Private placement.....................

32,583
10,172

26,453
15,927

24,186
18,007

1,744
2,066

2,177
1,541

1,497
1,032

1.610
1,295

'1,651
865

1,608
873

16,980
2,750
3,439
9,658
3,464
6,469

13,264
4,372
4,387
8,297
2,787
9,274

12,510
5,887
2,033
8,261
3,059
10,438

1,105
562
225
815
344
761

675
417
235
768
326
1,296

485
414
115
521
546
448

823
454
135
912
205
375

'405
487
67
819
290
446

805

96
384
456
627

11 Stocks...........................................

10,863

11,108

12,013

1,405

508

782

927

'1,169

726

Type
12 Preferred...................................
13 Common...................................

3,458
7,405

2,803
8,305

3,878
8,135

586
819

57
451

157
625

127
800

'1,122

47

149
577

1,670
1,470

2,237
1,183
24

1,265
1,838
418
6,058
1,379
1,054

366
245
38
429
5
320

167
167
40
31
27
76

236

148
168

5
6
7
8
9
10

14
15
16
17
18
19

Industry group
Manufacturing.........................
Commercial and miscellaneous.
Transportation.........................
Public utility.............................
Communication........................
Real estate and financial..........

Industry group
Manufacturing.........................
Commercial and miscellaneous
Transportation.........................
Public utility.............................
Communication.......................
Real estate and financial..........

1
6,235
1,002
488

6,121
776
771

110
0
354
6
75

12
426
10
164

90

'112
0
800
0
'167

112

35

111
12
377
1
190

1 Figures, which represent gross proceeds of issues maturing in more companies other than closed-end, intracorporate transactions, and sales to
than one year, sold for cash in the United States, are principal amount or
foreigners.
number of units multiplied by offering price. Excludes offerings of less
than $100,000, secondary offerings, undefined or exempted issues as
S o u r c e . Securities and Exchange Commission.
defined in the Securities Act of 1933, employee stock plans, investment




Corporate Finance
1 .4 9

O P E N -E N D IN V E S T M E N T C O M P A N IE S
Millions o f dollars

N e t S a le s a n d A s s e t P o s itio n

1979

1978
Item

A 37

1977

1978

Aug.

Sept.

Nov.

Oct.

Dec.

Jan.r

Feb.

INVESTMENT COMPANIES
excluding money market funds
1
2
3

Sales of own shares1........................................
Redemptions of own shares2..........................

6,401
6,027
357

6,645
7,231
-586

638
882
-2 4 4

519
673
-1 5 4

463
607
-1 4 4

587
439
148

602
545
57

648
607
41

451
548
-9 7

4
5
6

Cash position4..............................................
Other.............................................................

45,049
3,274
41,775

44,980
4,507
40,473

49,299
3,948
45,351

48,151
3,703
44,448

43,462
3,793
39,669

44,242
4,299
39,943

44,980
4,507
40,473

46,591
4,624
41,967

45,016
4,851
40,165

1 Includes reinvestment of investment income dividends. Excludes
reinvestment of capital gains distributions and share issue of conversions
from one fund to another in the same group.
2 Excludes share redemption resulting from conversions from one fund
to another in the same group.
3 Market value at end of period, less current liabilities.

4 Also includes all U.S. government securities and other short-term
debt securities.
N ote. Investment Company Institute data based on reports of mem­
bers, which comprise substantially all open-end investment companies
registered with the Securities and Exchange Commission. Data reflect
newly formed companies after their initial offering of securities.

1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION
Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Account

2 Profits tax liability...................................................
3 Profits after tax........................................................

6 Capital consumption allowances.............................
7 Net cash flow............................................................

1976

1977

1978

Q2

Q3

Q4

Ql

Q2

Q3

Q4

155.9

173.9

202.1

175.1

177.5

178.3

172.1

205.5

205.4

225.3

64.3
91.6

71.8
102.1

83.9
118.2

72.3
102.8

72.8
104.7

73.9
104.4

70.0
102.1

85.0
120.5

86.2
119.2

94.5
130.8

37.9
53.7

43.7
58.4

49.3
68.9

42.7
60.1

44.1
60.6

46.3
58.1

47.0
55.1

48.1
72.4

50.1
69.1

51.9
78.9

97.1
150.8

106.0
164.4

114.4
183.3

105.0
165.1

107.6
168.2

109.3
167.4

111.3
166.4

113.3
185.7

115.4
184.5

117.5
196.4

Source. Survey o f Current Business (U.S. Department of Commerce.)




1977

1978

A 38
1.51

D om estic F in an cial Statistics □ A p r il 1979
NONFINANCIAL CORPORATIONS

Current Assets and Liabilities

Billions of dollars, except for ratio

Account

1974

1975

1976

1977

1978

Q4

Ql

Q2

Q3

Q4

Ql

Q2

Q3

1 Current assets.........................................................

734.6

756.3

823.1

842.0

856.4

880.3

900.1

924.2

953.5

992.4

2
3
4
5
6

73.0
11.3
265.5
318.9
65.9

80.0
19.6
272.1
314.7
69.9

86.8
26.0
292.4
341.4
76.4

80.8
26.8
304.1
352.1
78.3

83.1
22.1
312.8
358.8
79.6

83.4
21.5
326.9
367.5
81.0

94.2
20.9
325.7
375.0
84.3

88.5
20.9
338.3
389.7
86.8

90.9
19.7
356.8
399.1
87.0

91.4
18.6
377.8
415.5
89.0

Cash....................................................................
U.S. government securities.. t .........................
Notes and accounts receivable.........................
Inventories..........................................................
Other...................................................................

7 Current liabilities....................................................

451.8

446.9

487.5

502.6

509.5

528.9

543.2

570.4

590.8

624.5

8

Notes and accounts payable.............................

272.3
179.5

261.2
185.7

273.2
214.2

280.2
222.4

286.8
222.7

297.8
231.1

306.8
236.3

317.2
253.2

331.3
259.4

349.9
274.6

10 Net working capital................................................

282.8

309.5

335.6

339.5

346.9

351.4

357.0

353.8

362.7

367.9

11 Memo: Current ratio1...........................................

1.626

1.693

1.688

1.675

1.681

1.664

1.657

1.620

1.614

1.589

1 Ratio of total current assets to total current liabilities.

Source. Federal Trade Commission.

N ote. For a description of this series see “Working Capital of Non­
financial Corporations” in the July 1978 Bulletin, pp. 533-37.

1.52 BUSINESS EXPENDITURES on New Plant and Equipment
Billions of dollars; quarterly data are at seasonally adjusted annual rates.
1977
Industry

1977

1978 r

1978

1979

Q3

Q4

Ql

Q2

Q3

Q4

Q l2

Q22

1 All industries..........................................................

135.72

153.60

140.38

138.11

144.25

150.76

155.41

163.96

164.23

167.52

Manufacturing
2 Durable goods industries...................................
3 Nondurable goods industries............................

27.75
32.33

31.59
35.86

29.23
33.79

28.19
33.22

28.72
32.86

31.40
35.80

32.25
35.50

33.99
39.26

34.18
37.78

37.09
38.81

4.49

4.81

4.74

4.50

4.45

4.81

4.99

4.98

5.35

4.89

2.82
1.63
2.55

3.33
2.34
2.42

3.20
1.69
1.96

2.80
1.76
2.32

3.35
2.67
2.44

3.09
2.08
2.23

3.38
2.20
2.47

3.49
2.39
2.55

3.77
3.28
3.01

3.11
2.36
2.89

21.57
4.21
15.43
22.95

24.71
4.72
18.15
25.67

21.90
4.32
16.40
23.14

22.05
4.18
15.82
23.27

23.15
4.78
17.07
24.76

23.83
4.62
18.18
24.71

24.92
4.70
18.90
26.09

26.95
27.06
5.24
4.78
18.46 I AA SA
27.12

26.92
4.98
46 46

4
5
6
7
8
9
10
11

Nonmanufacturing
Mining................................................................
Transportation:
Railroad..........................................................
Air...................................................................
Other...............................................................
Public utilities:
Electric............................................................
Gas and other................................................
Communication..................................................
Commercial and other1.....................................

1 Includes trade, service, construction, finance, and insurance.
2 Anticipated by business.
N ote . Estimates for corporate and noncorporate business, excluding




agriculture; real estate operators; medical, legal, educational, and cultural
service; and nonprofit organizations.
Source. Survey o f Current Business (U.S. Dept, of Commerce).

Corporate Finance
1.521

D O M E S T IC F I N A N C E C O M P A N IE S

A 39

A s s e ts a n d L ia b ilitie s

Billions of dollars, end of period
1973

Account

1974

1975

1977

1976

1978

Q3

Q4

Ql

42.3
50.6

44.0
55.2
12.7
86.5
2.6
.9
14.3

44.5
57.6
102.1
12.8
89.3
2.2
1.2
15.0

Q2

Q3

Q4

ASSETS
1
2
3
4
5
6
7
8

Accounts receivable, gross
Consumer............................................................
Business..............................................................
Total ................................................................
Less: Reserves for unearned income and losses
Accounts receivable, net.......................................
Cash and bank deposits...................................
Securities.................................................................
All other..................................................................

35.4
32.3

36.1
37.2
73.3

67.7

36.0
39.3

38.6
44.7

75.3

83.4

92.9

99.2

47.1
59.5

49.7
58.3

106.6

108.0

14.1
92.6
2.9
1.3
16.2

14.3
93.7
2.7
1.8
17.1

52.6
63.3

116.0

8.4
59.3
2.6
.8
10.6

9.0
64.2
3.0
.4
12.0

9.4
65.9
2.9
1.0
11.8

10.5
72.9
2.6
1.1
12.6

73.2

79.6

81.6

89.2

99.6

104.3

107.7

112.9

115.3

122.4

7.2
19.7

9.7
20.7

8.0
22.2

6.3
23.7

5.4
25.7

5.9
29.6

5.8
29.9

5.4
31.3

5.4
29.3

6.5
34.5

4.6
24.6
5.6

4.9
26.5
5.5

4.5
27.6
6.8

5.4
32.3
8.1

5.4
34.8
13.7

6.2
36.0
11.5

5.3
38.0
12.9

6.6
40.1
13.6

6.8
41.3
15.2

8.1
43.6
12.6

11.7
81.2
2.5
1.8
14.2

15.6
100.4
3.5
1.3
17.3

LIABILITIES
10 Bank loans..............................................................
11 Commercial paper..................................................
Debt:
12 Short-term, n.e.c.................................................
13 Long-term, n.e.c.................................................
14 Other...................................................................
15 Capital, surplus, and undivided profits................

11.5

12.4

12.5

13.4

14.6

15.1

15.7

16.0

17.3

17.2

16 Total liabilities and capital....................................

73.2

79.6

81.6

89.2

99.6

104.3

107.7

112.9

115.3

122.4

N ote. Components may not add to totals due to rounding.

1.522 DOMESTIC FINANCE COMPANIES

Business Credit

Millions of dollars, seasonally adjusted except as noted

Type

Accounts
receivable
outstand­
ing Jan. 31,
19791

1979

1978
Nov.

Dec.

Jan.

Repayments

Extensions

Changes in accounts
receivable

1979

1978

1979

1978

Nov.

Dec.

Jan.

Nov.

Dec.

Jan.

1 Total.................................................................

63,847

1,210

1,271

860

16,293

17,680

16,160

15,083

16,409

15,300

2 Retail automotive (commercial vehicles).......
3 Wholesale automotive.....................................
4 Retail paper on business, industrial, and
farm equipment........................................
5 Loans on commercial accounts receivable. . .
6 Factored commercial accounts receivable.. . . J
7 All other business credit.................................

14,654
13,595

229
591

245
551

145
1,156

1,260
6,946

1,308
6,967

1,231
6,723

1,031
6,355

1,063
6,416

1,086
5,567

1 Not seasonally adjusted.




16,355
226
( -4 9
6,630 X
209
4
12,613

1,159
20
-425
262
( 3,310
32 1
27 I 1,776
161
1,842
-4 3

1,012
933
1,790
4,110 } 5,261 ( 3,359
I 1,567
1,550
1,838
1,955
1,933

1,437
1,770
3,848 } 5,234
1,518
1,794
1,976

2 Beginning January 1979 the categories “Loans on commercial ac­
counts receivable” and “Factored commercial accounts receivable” are
combined.

A40

D om estic Finan cial Statistics □ A p r il 1979

1.53 MORTGAGE MARKETS
Millions of dollars; exceptions noted.
1978
Item

1976

1977

1978

Sept.

Oct.

1979
Nov.

Dec.

Jan.

Feb.

Terms and yields in primary and secondary markets
PRIMARY MARKETS

1
2
3
4
5
6

Conventional mortgages on new homes
Terms:1
Purchase price (thous. dollars).................
Amount of loan (thous. dollars).............
Loan/price ratio (percent).....................
Maturity (years).......................................
Fees and charges (percent of loan amount)2.
Contract rate (percent per annum). . . .

48.4
35.9
74.2
27.2
1.44
8.76

54.3
40.5
76.3
27.9
1.33
8.80

62.6
45.9
75.3
28.0
1.39
9.30

64.6
46.7
74.1
27.8
1.36
9.50

48.6
74.4
28.0
1.37
9.60

65.1
47.5
74.4
27.9
1.40
9.63

68.1
49.6
75.1
28.1
1.49
9.76

71.9
52.0
74.7
28.6
1.56
9.92

68.3
49.5
74.5
28.6
1.56
9.94

7
8

Yield (percent per annum):
FHLBB series 3..........................................
HUD series4..............................................

8.99
8.99

9.01
8.95

9.54
9.68

9.73
9.80

9.83
9.95

10.10

9.87

10.02
10.30

10.18
10.30

10.20
10.35

8.82
8.17

8.04

8.68

9.70
8.98

9.78
9.04

9.93
9.25

9.99
9.39

10.16
9.54

10.17
r9.67

10.17
9.67

8.99
9.11

8.73
8.98

10.01

9.78

10.03
10.19

10.30
10.56

10.50
10.85

10.70
11.07

10.54
11.04

66.8

SECONDARY MARKETS
9
10
11
12

Yields (percent per annum):
FHA mortgages (HUD series)5...............
GNMA securities6....................................
FNMA auctions:7
Government-underwritten loans..........
Conventional loans...............................

9.77

10.02

Activity in secondary markets
FEDERAL NATIONAL
MORTGAGE ASSOCIATION
13

Mortgage holdings (end of period)
Total............................................................... .

15
16

VA-guaranteed............................................
Conventional..............................................

32,904
18,916
9,212
4,776

34,370
18,457
9,315
6,597

43,311
21,243
10,544
11,524

41,189
20,325
10,575
10,289

41,957
20,625
10,565
10,767

42,590
20,929
10,535
11,126

43,311
21,243
10,544
11,524

44,329
r21,704
'10,578
12,046

45,155
21,967
10,606
12,582

3,606
86

4,780
67

12,303
5

1,132
0

1,053
0

920
0

974
0

1,280
0

1,173
0

6,247
3,398

9,729
4,698

18,960
9,201

882
9,068

1,900
9,547

1,275
9,525

1,051
9,201

479
8,161

388
7,381

Auction of 4-month commitments to buy—
Government-underwritten loans:
Offered9.......................................................... 4,929.8
2,787.2
Conventional loans:
23
Offered9.......................................................... 2,595.7
24
Accepted........................................................ 1,879.2

7,974.1
4,846.2

12,978
6,747.2

717.9
335.9

1,964.8
832.4

788.0
321.8

627.0
319.6

304.9
155.4

210.6
161.2

5,675.2
3,917.8

9,933.0
5,110.9

484.7
283.7

1,156.8
495.6

861.4
386.8

417.4
220.9

113.5
58.1

63.0
45.4

4,269
1,618
2,651

3,276
1,395
1,881

3,064
1,243
1,822

2,486
1,287
1,199

2,867
1,594
1,273

3,022
1,257
1,766

3,064
1,243
1,822

3,263
1,231
2,033

3,207
1,220
1,989

1,175
1,396

3,900
4,131

6,524
6,211

670
594

791
369

763
581

596
540

498
317

300
377

1,477
333

5,546
1,063

7,451
1,410

760
2,130

547
1,716

706
1,617

455
1,410

374
1,248

357
1,177

Mortgage transactions (during period)
18

Sales...................................................................
Mortgage commitments:8

20

Outstanding (end of period).........................

21

FEDERAL HOME LOAN
MORTGAGE CORPORATION
25
26

Mortgage holdings (end of period)10
Total...................................................................
FHA/VA........................................................
Mortgage transactions (during period)

29

Sales...................................................................
Mortgage commitments:11

31

Outstanding (end of period).............................

1 Weighted averages based on sample surveys of mortgages originated
by major institutional lender groups. Compiled by the Federal Home
Loan Bank Board in cooperation with the Federal Deposit Insurance
Corporation.
2 Includes all fees, commissions, discounts, and “points” paid (by the
borrower or the seller) in order to obtain a loan.
3 Average effective interest rates on loans closed, assuming prepay­
ment at the end of 10 years.
4 Average contract rates on new commitments for conventional first
mortgages, rounded to the nearest 5 basis points; from Dept, of Housing
and Urban Development.
5 Average gross yields on 30-year, minimum-downpayment, Federal
Housing Administration-insured first mortgages for immediate delivery
in the private secondary market. Any gaps in data are due to periods of
adjustment to changes in maximum permissible contract rates.
6 Average net yields to investors on Government National Mortgage
Association-guaranteed, mortgage-backed, fully-modified pass-through




securities, assuming prepayment in 12 years on pools of 30-year FHA/VA
mortgages carrying the prevailing ceiling rate. Monthly figures are
unweighted averages of Monday quotations for the month.
7 Average gross yields (before deduction of 38 basis points for mortgage
servicing) on accepted bids in Federal National Mortgage Association’s
auctions of 4-month commitments to purchase home mortgages, assuming
prepayment in 12 years for 30-year mortgages. No adjustments are made
for FNMA commitment fees or stock related requirements. Monthly
figures are unweighted averages for auctions conducted within the month.
8 Includes some multifamily and nonprofit hospital loan commitments
in addition to 1- to 4-family loan commitments accepted in FNMA’s
free market auction system, and through the FNMA-GNMA tandem
plans.
9 Mortgage amounts offered by bidders are total bids received.
10 Includes participations as well as whole loans.
11 Includes conventional and government-underwritten loans.

Real Estate Debt
1 .5 4

A 41

M O R T G A G E D E B T O U T S T A N D IN G

Millions of dollars, end of period
Type of holder, and type of property

1974

1975

1976

1978

1977
Q2

Q3

Q4?

1,023,505 r1,051,908
'676,573
656,566
111,841
'113,915
189,274
'193,355
65,824
'68,065

'1,092,451
'706,230
'116,419
'198,926
'70,876

1,133,122
734,097
119,207
206,045
73,773

1,169,522
759,617
121,928
211,810
76,167

108,699
9,387
58,407
7,930

'794,009
' 194,469
'115,389
'9,925
'60,950
'8,205

Ql
1
?
3
4
5

1. to 4-family.........................................
Multifamily..........................................
Commercial...........................................
Farm......................................................

6 Maior financial institutions.......................
7
Commercial banks1 ...............................
8
1- to 4-family.....................................
9
Multifamily........................................
10
Commercial.......................................
Farm..................................................
11

742,512
449,371
99,976
146,877
46,288

801,537
490,761
100,601
159,298
50,877

889,327
556,557
104,516
171,223
57,031

542,560

581,193

647,650

745,011

764,614

132,105

136,186

151,326

178,979

184,423

77,018
5,915
46,882
6,371

86,234
8,082
50,289
6,721

105,115
9,215
56,898
7,751

77,249

81,639

88,104

57,637
15,304
15,110
53

58,747
'15,598
15,401
54

89,800

74,758
7,619
43,679
6,049

12
13
14
15
16

Mutual savings banks ............................

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
Farm..................................................

49,213
12,923
12,722
62

50,025
13,792
13,373
59

17
18
19
20

Savings and loan associations................

249,301

278,590

21
22
23
24
25

Life insurance companies.......................

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
Farm..................................................

26 Federal and related agencies....................
27
Government National Mortgage Assn. ..
1- to 4-family.....................................
28
29
Multifamily........................................

74,920

200,987
23,808
24,506

'.392,428
'320,064
'33,592
'38,772

'407,965
'334,164
'34,351
'39,450

420,971

432,922

345,232
35,446
40,293

355,291
36,452
41,179

97,963

96,765

14,727
18,807
54,388
8,843

58,320

66,891

82,086

948
2,343

1,432

1,109

41
42
43
44
45
46

4,015

7,438

4,241

3,660

910
2,700

3,610

618

1,384

1,084

5,212

5,219

5,225

5,295

5,365

4,970

5,150

1,990
2,980

1,676
3,474

31,824

32,904

1,627
3,585

34,369

16,563

19,125

601
18,524

22,136

549
16,014

Federal Home Loan Mortgage C orp....

4,586

4,987

4,269

3,889
380

3,276

4,588
399

23,799

34,138

49,801

11,249
520

28,504
5,865
670
21,466
2,738
538
70,289

202
408
218
351

38,753
32,974

41,189

35,437
5,752

43,311

5,779

22,925

23,857

24,758

25,658

3,371

2,255

2,486

3,058

30,208
5,821

691
22,234
2,785
586

74,080

29,583
989

1,598

2,671
2,282

6,610

389

5,621
989

6,286
1,185

1- to 4-family.....................................
Multifamily........................................

608
149

54
55
56
57
58

Farmers Home Admin ...........................

11,273

14,283

16,558

9,194
295
1,948
2,846

10,219
532
2,440
3,367

59 Individuals and others3.............................
60
1- to 4-family.....................................
61
Multifamily........................................
62
Commercial.......................................
63
Farm..................................................

117,833
53,331
24,276
23,085
17,141

119,315
56,268
22,140
22,569
18,338

125,123
62,643
20,420
21,446
20,614

1,349
249

1 Includes loans held by nondeposit trust companies but not bank trust
departments.
2 Outstanding principal balances of mortgages backing securities in­
sured or guaranteed by the agency indicated.
3 Other holders include mortgage companies, real estate investment
trusts, state and local credit agencies, state and local retirement funds,
noninsured pension funds, credit unions, and U.S. agencies for which
amounts are small or separate data are not readily available.

360
188
197
339

36,029

30,572

Federal Home Loan Mortgage Corp.. .

460
240
251
433

1,543
3,682

17,538
719

44,896

124
102
104
288

1,585
3,634

18,257

51
52
53

6,782
116
1,473
2,902

897
2,663

1,179

626
275
149
303

13,863

757

3,560

1,353

Federal Land Banks...............................

11,769

3,283

454
218
72
320

26,934
5,970

4,217
369

14,550
19,284
60,782
10,361

1,064

25,813
6,011

406
13,457

3,291

14,189
18,803
59,268
10,105

208
215
190
496

23,778
5,800




78,672

922
2,361

72,014

1,548
2,112

29,578

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
Farm..................................................

73,991

70,006

Federal National Mortgage Assn..........

47 Mortgage pools or trusts2.........................
48 Government National Mortgage Assn . ..
49
1- to 4-family.....................................
50
Multifamily........................................

104,971

1,970
2,271

38
39
40

1- to 4-family.....................................
Multifamily........................................

102,365

66,753

2,009
2,006

1- to 4-family.....................................
Farm..................................................

14,129
18,745
57,463
9,703

4,728
2,710

1- to 4-family.....................................
Multifamily........................................

1- to 4-family.....................................
Multifamily........................................

100,040

14,476
18,851
55,426
9,210

2,248
2,598

Federal Housing and Veterans Admin . ..

62,178
16,509
16,300
57

310,686
32,513
37,964

16,088
19,178
48,864
7,425

35
36
37

95,044

61,104
16,224
16,019
56

381,163

91,555

759
167
156
350

93,403

59,882
15,900
15,698
55

323,130

17,590
19,629
45,196
6,753

Farmers Home Admin ...........................

91,535

126,896
10,906
67,019
9,024

260,895
28,436
33,799

89,168

4,846

846,788
213,845

121,911
10,478
64,386
8,670

223,903
25,547
29,140

19,026
19,625
41,256
6,327

86,234

30
31
32
33
34

1- to 4-family.....................................
Multifamily........................................
Commercial.......................................
Farm..................................................

53,089
14,177
14,313
60

822,184
205,445

727
23,130
1,856
399

78,602

1,565
3,730

819
23,939
1,994
492

82,153

1,587
3,778

37,579
5,732

849
24,809
2,453
605

86,747

46,357

48,032

46,515
1,517

49,276
1,568

50,844

54,347

7,471

9,423

9,934

10,125

18,783

20,252

21,147

1,084

22,275

138,199
72,115
20,538
21,820
23,726

141,200
74,741
20,327
21,603
24,529

145,849
77,466
20,904
21,960
25,519

150,113
80,004
21,119
22,459
26,531

153,901
82,321
21,390
22,823
27,367

43,555
1,341

11,379
759
2,945
3,682

44,906
1,451

12,235
732
3,528
3,757

7,797
1,626

12,742
1,128
3,301
3,976

8,358
1,576
360
188
197
339

52,732
1,615
8,519
1,606

13,392
1,163
3,510
4,210

N ote. Based on data from various institutional and government
sources, with some quarters estimated in part by Federal Reserve in
conjunction with the Federal Home Loan Bank Board and the Depart­
ment of Commerce. Separation of nonfarm mortgage debt by type of
property, if not reported directly, and interpolations and extrapolations
where required, are estimated mainly by Federal Reserve. Multifamily
debt refers to loans on structures of five or more units.

A 42

D om estic F inan cial Statistics □ A p r il 1979

1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A
Millions of dollars

Holder, and type of credit

1976

1977

1978

1978
Aug.

Sept.

Oct.

1979
Nov.

Dec.

Jan.

Feb.

Amounts outstanding (end of period)
1

193,977

230,829

275,640

259,614

263,387

265,821

269,445

275,640

275,346

275,818

93,728
38,919
31,169
19,260
6,246
2,830
1,825

112,373
44,868
37,605
23,490
7,354
2,963
2,176

136,189
54,309
45,939
24,876
8,394
3,240
2,693

129,622
50,558
43,499
22,093
7,947
3,354
2,541

131,403
51,280
44,325
22,302
8,055
3,416
2,606

132,702
51,984
44,635
22,464
8,177
3,276
2,583

133,908
53,099
45,305
23,006
8,291
3,173
2,663

136,189
54,309
45,939
24,876
8,394
3,240
2,693

136,452
55,004
45,526
23,962
8,427
3,338
2,637

136,671
55,728
45,661
23,246
8,488
3,274
2,750

Automobile.....................................
Commercial banks......................
Indirect paper..........................
Direct loans.............................
Credit unions...............................
Finance companies.....................

67,707
39,621
22,072
17,549
15,238
12,848

82,911
49,577
27,379
22,198
18,099
15,235

102,468
60,564
33,850
26,714
21,976
19,937

97,687
58,453
32,667
25,786
20,801
18,433

99,062
59,085
33,067
26,018
21,196
18,781

100,159
59,778
33,415
26,363
21,344
19,037

101,565
60,347
33,709
26,638
21,664
19,554

102,468
60,564
33,850
26,714
21,967
19,937

102,890
60,682
33,928
26,754
21,769
20,439

103,780
61,053
34,261
26,792
21,834
20,893

15
16
17
18

Revolving........................................
Commercial banks......................
Retailers.......................................
Gasoline companies....................

17,189
14,359
2,830

39,274
18,374
17,937
2,963

47,051
24,434
19,377
3,240

41,629
21,314
16,961
3,354

42,420
21,935
17,069
3,416

42,579
22,165
17,138
3,276

43,523
22,724
17,626
3,173

47,051
24,434
19,377
3,240

46,516
24,677
18,501
3,338

45,586
24,502
17,810
3,274

19
20
21
22
23

Mobile home...................................
Commercial banks......................
Finance companies.....................
Savings and loans.......................
Credit unions...............................

14.573
8,737
3,263
2,241
332

15,141
9,124
3,077
2,538
402

16,042
9,553
3,152
2,848
489

15,799
9,539
3,101
2,696
463

15,910
9,591
3,114
2,733
472

15,925
9,548
3,127
2,775
475

16,017
9,572
3,150
2,813
482

16,042
9,553
3,152
2,848
489

16,004
9,511
3,149
2,859
485

16,008
9,495
3,147
2,880
486

24
25
26
27
28
29
30

Other................................................
Commercial banks......................
Finance companies.....................
Credit unions...............................
Retailers.......................................
Savings and loans.......................
Mutual savings banks.................

94,508
31,011
22,808
15,599
19,260
4,005
1,825

93,503
35,298
26,556
19,104
5,553
4,816
2,176

110,079
41,638
31,220
23,483
5,499
5,546
2,693

104,499
40,316
29,024
22,235
5,132
5,251
2,541

105,995
40,792
29,385
22,657
5,233
5,322
2,606

107,158
41,211
29,820
22,816
5,326
5,402
2,583

108,340
41,265
30,395
23,159
5,380
5,478
2,663

110,079
41,638
31,220
23,483
5,499
5,546
2,693

109,936
41,582
31,416
23,272
5,461
5,568
2,637

110,444
41,621
31,688
23,341
5.436
5,608
2,750

2
3
4
5
6
7
8
9
10
11
12
13
14

By major holder

Commercial banks..........................
Finance companies.........................
Credit unions...................................
Retailers2.........................................
Savings and loans...........................
Gasoline companies.......................
Mutual savings banks.....................

By major type o f credit

Net change (during period)3
31 Total.................................

21,647

35,278

45,066

3,632

3,680

r3,382

'4,104

4,400

3,061

3,308

10,792
2,946
5,503
1,059
1,085
124
138

18,645
5,948
6,436
2,654

1,785
736
613
342
107

1,617
863
644
115
127
16

1,630
1,205
402

104

2,080
1,098
773
196
115
96
42

1,330
1,341
360
-9 0
67

50

1,714
847
639
328
94
9
49

1,925
1,018
779
186

132
352

24,058
9,441
8,334
1,386
1,041
276
530

100

-4 7

-221
86
68
138

Automobile................
Commercial banks.
Indirect paper. . .
Direct loans........
Credit unions..........
Finance companies.

10,465
6,334
2,742
3,592
2,497
1,634

15,204
9,956
5,307
4,649
2,861
2,387

19,557
10,987
6,471
4,516
3,868
4,702

1,604
957
515
442
287
360

1,532
848
517
331
313
371

1,375
759
354
405
301
315

1,755
839
440
399
364
552

1,780
845
530
315
391
544

1,680
633
387
246
187
860

1,565
739
530
209
190
636

45
46
47
48

Revolving.....................
Commercial banks. .
Retailers...................
Gasoline companies.

2,170
2,046

6,248
4,015

7,776
6,060
1,440
276

737
358
380

622
380
233
9

346
337
-7
16

665
556

869
610
163
96

433
375
-4 2

317
492
-243

49
50
51
52
53

Mobile home.............
Commercial banks.
Finance companies.
Savings and loans..
Credit unions..........

75
19
15
34
7

71

40

56
15
9
28
4

54
55
56
57
58
59
60

Other................................
Commercial banks
Finance companies
Credit unions...............
Retailers.......................
Savings and loans........
Mutual savings banks.

32
33
34
35
36
37
38
39
40
41
42
43
44

By major holder

Commercial banks
Finance companies___
Credit unions...............
Retailers1.....................
Savings and loans........
Gasoline companies. ..
Mutual savings banks.

By major type of credit

1,111

2,101
132

565
387
-189
297
70

897
426
74
310
87

13,261
4,287
3,750
3,505
553
814
352

16,836
6,585
4,665
4,379
-5 4
731
530

1 The board’s series cover most short- and intermediate-term credit
extended to individuals through regular business channels, usually to
finance the purchase of consumer goods and services or to refinance
debts incurred for such purposes, and scheduled to be repaid (or with
the option of repaying in two or more installments).
2 Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
3 Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted.




-1

-1

79

20

72
31

7
46

6
27
8

450
369
320
-3 8
61
50

1,454
455
470
318
95
67
49

6
1,212

25
-2 5

-2
46
6

rl ,636
r554
550
337

122
81

88
-1

110
-1

r1,609
>-516
451
408
76
54
104

21
11
30
9

1,680
604
543
373
33
85
42

100
12
7
19

2

908
310
474
171
-4 8
48
-4 7

68

1,370
384
560
208

22

58
138

N ote. Total consumer noninstallment credit outstanding—credit
scheduled to be repaid in a lump sum, including single-payment loans,
charge accounts, and service credit—amounted to $64.3 billion at the end
of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976,
and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979
will be published in the February 1980 Bulletin.
A Consumer installment credit series have been revised from 1943.
effective Dec. 7, 1978. Information is available from Mortgage and
Consumer Finance Section, Division of Research and Statistics.

Consumer Debt
1.56

C O N S U M E R IN S T A L L M E N T C R E D IT

A 43

Extensions and Liquidations A

Millions o f dollars

Holder, and type of credit

1976

1977

1979

1978

1978
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Extensions2
211,028

254,071

298,574

25,669

r25,537

'25,766

'26,219

26,500

25,544

26,202

97,397
36,129
29,259
29,447
3,898
13,387
1,511

117,896
41,989
34,028
39,133
4,485
14,617
1,923

142,965
50,483
40,023
41,619
5,050
16,125
2,309

12,255
4,348
3,379
3,725
435
1,317
210

12,123
4,372
3,360
3,718
403
1,346
215

'12,190
4,605
3,401
3,518
566
1,335
151

'12,481
4,512
3,530
3,571
489
1,376
260

12,521
4,679
3,526
3,612
516
1,451
195

12,153
4,547
3,241
3,565
481
1,440
117

12,430
4,822
3,238
3,460
468
1,486
298

13
14

Automobile................
Commercial banks.
Indirect paper. . .
Direct loans........
Credit unions..........
Finance companies.

63,743
37,886
20,576
17,310
14,688
11,169

75,641
46,363
25,149
21,214
16,616
12,662

88,986
53,028
29,336
23,692
19,486
16,472

7,744
4,660
2,562
2,098
1,632
1,452

7,542
4,479
2,519
1,960
1,641
1,422

7,501
4,345
2,384
1,961
1,643
1,513

7,787
4,503
2,422
2,081
1,718
1,566

7,833
4,443
2,451
1,992
1,738
1,652

7,545
4,286
2,318
1,968
1,635
1,624

7,756
4,430
2,472
1,958
1,624
1,702

15
16
17
18

Revolving.....................
Commercial banks. .
Retailers...................
Gasoline companies.

43,934
30,547
13,387

86,756
38,256
33,883
14,617

104,587
51,531
36,931
16,125

9,028
4,346
3,365
1,317

9,006
4,457
3,203
1,346

8,846
4,475
3,036
1,335

9,176
4,702
3,098
1,376

9,424
4,814
3,159
1,451

9,417
4,799
3,178
1,440

9,357
4,860
3,011
1,486

19

20
21
22
23

Mobile home..............
Commercial banks.
Finance companies.
Savings and loans..
Credit unions..........

4,859
3,064
702
929
164

5,425
3,466
643
1,120
196

6,067
3,704
886
1,239
238

531
310
75
127
19

494
297
77
100
20

604
352
73
154
25

486
280
77
108
21

502
295
74
111
22

369
235
33
88
13

454
295
60
81
18

24
25
26
27
28
29
30

Other................................
Commercial banks
Finance companies
Credit unions...............
Retailers.......................
Savings and loans........
Mutual savings banks.

98,492
25,900
24,258
14,407
29,447
2,969
1,511

86,249
29,811
28,684
17,216
5,250
3,365
1,923

98,934
34,702
33,125
20,299
4,688
3,811
2,309

8,366
2,939
2,821
1,728
360
308
210

8,495
2,890
2,873
1,699
515
303
215

'8,815
'3,018
3,019
1,733
482
412
151

'8,870
'2,996
2,869
1,791
473
381
260

8,741
2,969
2,953
1,766
453
405
195

8,213
2,833
2,890
1,593
387
393
117

8,635
2,845
3,060
1,596
449
387
298

1 Total.
2
3
4
5
6
7
8
9

10
11
12

By major holder

Commercial banks
Finance companies___
Credit unions...............
Retailers1.....................
Savings and loans........
Gasoline companies. ..
Mutual savings banks.

By major type o f credit

Liquidations2
31 Total....................................................

189,381

218,793

253,508

22,037

21,857

22,384

22,115

22,100

22,483

22,894

86,605
33,183
23,756
28,388
2,813
13,263
1,373

99,251
36,041
27,592
36,479
3,374
14,485
1,571

118,907
41,042
31,689
40,233
4,009
15,849
1,779

10,470
3,612
2,766
3,383
328
1,318
160

10,409
3,525
2,721
3,390
309
1,337
166

10,565
3,742
2,757
3,403
439
1,319
159

10,551
3,494
2,751
3,385
401
1,377
156

10,441
3,581
2,753
3,416
401
1,355
153

10,823
3,206
2,881
3,655
414
1,340
164

10,800
3,617
2,836
3,681
382
1,418
160

Automobile.....................................
Commercial banks......................
Indirect paper..........................
Direct loans.............................
Credit unions...............................
Finance companies.....................

53,278
31,552
17,834
13,718
12,191
9,535

60,437
36,407
19,842
16,565
13,755
10,275

69,429
42,041
22,865
19,176
15,618
11,770

6,140
3,703
2,047
1,656
1,345
1,092

6,010
3,631
2,002
1,629
1,328
1,051

6,126
3,586
2,030
1,556
1,342
1,198

6,032
3,664
1,982
1,682
1,354
1,014

6,053
3,598
1,921
1,677
1,347
1,108

5,865
3,653
1,931
1,722
1,448
764

6,191
3,691
1,942
1,749
1,434
1,066

45
46
47
48

Revolving.........................................
Commercial banks......................
Retailers.......................................
Gasoline companies....................

41,764
28,501
13,263

80,508
34,241
31,782
14,485

96,811
45,471
35,491
15,849

8,291
3,988
2,985
1,318

8,384
4,077
2,970
1,337

8,500
4,138
3,043
1,319

8,511
4,146
2,988
1,377

8,555
4,204
2,996
1,355

8,984
4,424
3,220
1,340

9,040
4,368
3,254
1,418

49
50
51
52
53

Mobile home...................................
Commercial banks......................
Finance companies.....................
Savings and loans.......................
Credit unions...............................

4,719
2,994
884
737
104

4,860
3,079
832
823
126

5,170
3,278
812
929
151

452
290
68
81
13

422
266
71
73
12

579
377
75
108
19

411
261
62
74
14

431
274
63
81
13

329
223
26
69
11

398
280
51
53
14

54
55
56
57
58
59
60

Other................................................
Commercial banks......................
Finance companies.....................
Credit unions...............................
Retailers.......................................
Savings and loans.......................
Mutual savings banks.................

89,620
23,558
22,764
11,461
28,388
2,076
1,373

72,988
25,524
24,934
13,711
4,697
2,551
1,571

82,098
28,117
28,460
15,920
4,742
3,080
1,779

7,154
2,489
2,452
1,408
398
247
160

7,041
2,435
2,403
1,381
420
236
166

7,179
2,464
2,469
1,396
360
331
159

7,161
2,480
2,418
1,383
397
327
156

7,061
2,365
2,410
1,393
420
320
153

7,305
2,523
2,416
1,422
435
345
164

7,265
2,461
2,500
1,388
427
329
160

32
33
34
35
36
37
38
39
40
41
42
43
44

By major holder

Commercial banks.........................
Finance companies.........................
Credit unions...................................
Retailers1.........................................
Savings and loans...........................
Gasoline companies.......................
Mutual savings banks.....................
By major type o f credit

1 Includes auto dealers and excludes 30-day charge credit held by
travel and entertainment companies.
2 Monthly figures are seasonally adjusted.




▲ Consumer installment credit series have been revised from 1943,
effective Dec. 7, 1978. Information is available from Mortgage and Con­
sumer Finance Section, Division of Research and Statistics.

A 44

D om estic F in an cial Statistics □ A p r il 1979

1.57 FUNDS RAISED IN U.S. CREDIT MARKETS
Billions of dollars; quarterly data are at seasonally adjusted annual rates.

Transaction category, or sector

1973

1974

1975

1976

1977

1976

1978
HI

1977
H2

HI

285.6

302.2

1978
H2

HI

H2

378.2

400.7

Nonfinancial sectors
1 Total funds raised.........................................
2 Excluding equities .....................................
By sector and instrument
3 U.S. government.......................................
4
Public debt securities...........................
5
Agency issues and mortgages..............
6 All other nonfinancial sectors...................
7
Corporate equities................................
8
Debt instruments.................................
9
Private domestic nonfinancial sectors. .
10
Corporate equities............................
11
Debt instruments ...............................
12
Debt capital instruments ...............
13
State and local obligations. . . .
14
Corporate bonds.......................
Mortgages:
15
Home.....................................
16
Multifamily residential.......
17
Commercial...........................
18
Farm.......................................
19
Other debt instruments .................
20
Consumer credit.......................
21
Bank loans n.e.c........................
22
Open market paper...................
23
Other..........................................

203.8

188.8

208.1

272.5

196.1

184.9

198.0

261.7

337.4

387.4

245.9

277.5

301.0

373.8

376.8

8.3
7.9
.4
195.5
7.7
187.9
189.3
7.9

11.8
12.0
- .2
177.0
3.8
173.1
161.6
4.1

53.7
55.1
- 1 .4
335.8
2.1
333.7
310.1
2.6

73.5
73.4
.1
186.0
13.6
172.4
168.5
13.3

157.5
98.0

99.6
97.8

69.0
69.1
-.1
203.5
10.8
192.6
182.8
10.5

56.8
57.6
- .9
283.8
3.1
280.6
271.4
2.7

181.4
105.0

85.4
85.8
- .4
122.7
10.1
112.6
109.5
9.9

172.3
126.8

268.7
181.1
29.2

307.5
194.8

64.5
64.9
-.3
221.0
8.1
213.0
197.2
7.7

155.2
117.8

189.5
135.9

42.6
43.1
-.6
259.6
1.2
258.5
252.1
.5

71.0
72.2
- 1 .2
307.9
5.1
302.8
290.7
4.9

58.7
59.7
- .9
319.4
1.4
318.0
302.2
2.2

48.6
50.5
- 1 .9
352.1
2.7
349.3
318.0
3.0

24
25
26
27
28
29

By borrowing sector ..........................

189.3

30
31
32
33
34
35
36

Foreign..................................................
Corporate equities............................
Debt instruments ...............................
Bonds............................................
Bank loans n.e.c............................
Open market paper.......................
U.S. government loans................

State and local governments........
Households...................................
Farm..............................................
Nonfarm noncorporate................
Corporate...................................

14.7
9.2

46.4
10.4
18.9
5.5
76.4

23.8
39.8
2.5
10.3

13.2
80.9
9.7
12.8
72.7

16.5
19.7

15.6
27.2

34.8
6.9
15.1
5.0

39.5
*
11.0
4.6
59.6
1.8
10.2
9.4
29.0 - 1 4 .0
6.6
- 2 .6
13.7
9.0
161.6

15.5
49.2
7.9
7.4
81.8

109.5

13.2
48.6
8.7
2.0
37.0

19.0
22.8

340.5

21.0

29.6
20.1

63.7
1.8
13.4
6.1

96.4
7.4
18.4
8.8

101.4
10.1
23.1
10.3

45.5
23.6
3.5
4 .0

87.6

112.7

14.4

35.0
30.6
2.9
19.0

182.8

271.4

18.5
89.9
11.0
5.2
58.2

25.9
139.6
14.7
12.6
78.7

6.2
- .2

15.3
- .2

13.2
.2

20.7
.3

6 .4

15.6

12.3
.4

13.0

20.4

11.9

1.0
2.8
.9
1.7

2.1
4.7
7.3
1.5

6.2
3.7
.3
2.8

389.4

8.5
6.6
1.9
3.3

5.0
1.6
2.4
3.0

259.6

19.3
22.2
56.9
.6
13.8
4.9

18.7
23.5

70.5
3.1
12.9
7.3

378.9

251.6
163.4
29.3

285.8
198.9
29.0
26.0

300.0
185.6

314.9
204.0

28.5
19.0

30.8
21.2

88.5
6.4
14.2
8.9
88.2

104.2
8.4
22.6
8.7

99.3
9.2
20.3
9.3

103.6
11.1
26.0
11.4

16.0

50.5
37.1
4.9
20.2

- 2 .7
5.6
11.6

37.4
22.9

53.6
24.3
9.6
2 .4

310.1
24.9

168.5

161.3
17.2
17.2
89.5

17.6
82.7
9.9
4.0
54.3

197.2

25.7
- .5

17.5
.3

23.8
.3

17.2
1 .4

7.5
.6

17.2
.2

23.5
9 .1
1.9
2 .4
3.6

6 .9

17.0
5.6
6 .4

26.2
4.3

12.0
6.6
3.3

5.4
1.5
2.9

17.3

19.5
97.1
12.1
6.4
62.2

398.0

86.9

110.9

15.0

34.4
27.2
2.4
23.0

114.5

35.1
34.0
3.5
252.1

290.7

302.2

318.0

22.1
131.2
15.5
12.8
69.8

4.4
- 3 .2
2.7
3.1

29.0
148.0
13.8
12.3
87.6

49.8
41.4
5.2
18.0

21.7
155.0
14.6
20.3
90.6

51.3
32.7
4.5
22.4

28.1
167.5
19.9
14.2
88.2

17.2
- .8

34.1
- .3

18.0
4.9

34.4
3.1

2.2
2.9

6.2
3.6
3.3

17.7
9.6
3.4

Financial sectors
37 Total funds raised.........................................
By instrument
U.S. government related ...........................
Sponsored credit agency securities.. . .
Mortgage pool securities.....................
Loans from U.S. government............
Private financial sectors ...........................
Corporate equities................................
Debt instruments ...................................
Corporate bonds...............................
Mortgages.........................................
Bank loans n.e.c................................
Open market paper and RPs..........
Loans from FHLBs.........................

38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

By sector
Sponsored credit agencies.......................
Mortgage pools........................................
Private financial sectors ...........................
Commercial banks...............................
Bank affiliates.......................................
Savings and loan associations.............
Other insurance companies.................
Finance companies...............................
REITs....................................................
Open-end investment companies........
Money market funds...........................

57.6

36.4

11.7

29.2

58.8

93.8

27.9

30.5

61.5

56.2

102.9

84.6

19.9

23.1

13.5
2 .3

18.6

26.3

39.0

18.2

19.0

25.0

27.5
4 .4

41.5

36.5

28.7

61.4

48.0

28.0

60.3

47.0
6.9
-.5

16.3
3.6

3 7 .7

1.5

36 .2

16.6
5.8
.7

13.3

.3

13.0

10.3
.9

-1 .9

.6

-2 .5
2 .9
2.3

3.5
- 1 .2
8.9
17.8
7.2

2.1
- 1 .3
4.6
.9
6.7

- 3 .6
-.1
- 4 .0

57.6
16.3
3.6

36.4
17.3
5.8

11.7
3.2
10.3

13.3

-1 .9

3 7 .7

14.1
2.2
6.0
.5
9.4
6.5
- 1 .2

- 5 .6
3.5
6.3
.9
6.0
.6
- .7
2.4

- 1 .4
.3
- 2 .2
1.0
.6
- 1 .4
- .1
1.3

3.3
15.7
- .4
10.6
1.0

7.0
20.5
- 1 .2

9 .6

32.0

5.8
2.1
- 3 .7
7.3
- 2 .0
29.2
2.9
15.7
10.6
1.5

- .8
*
.9
6.4
- 2 .4
- 1 .0
*

32.6

.6

10.1
3.1
*
14.4
4.3

58.8
5.8
20.5
32.6

4.8
1.3
11.9
.9
16.9
- 2 .4
- 1 .0
.2

22.6
16.5

54.7

1.1

53.7

7.7
.9
1.2
31.3
12.5

93.8
22.6
16.5
54.7

8.2
4.3
16.4
1.1
19.7
- 1 .3
- .5
6.9

4.1
14.2
*
9 .7

- .2
10.0

2.6
17.2
- .7

9.5
17.9
- 2 .3

11.5

36.5
.5
36.0

2.3
9 .2

23.1
0

.1

1.5
- 2 .6
6.2
- 1 .5

5.2
2.7
- 4 .8
8.5
- 2 .5

10.1
3.3
- 2 .3
21.4
3.4

27.9
4.0
14.2

30.5
1.8
17.2

61.5
7.1
17.9

56.2
4.4
23.1

9 .7
9 .0

11.5

36.5

28.7
-.4

6 .4

10.1
2.9
2.3
7.4
5.2

24.9
16.6
0
1.1

8.4
2.4
.5
34.9
14.1

20.2
16.3

0

1.0

1.9
27.8
10.9

102.9
24.9
16.6

84.6
20.2
16.3

61.4

48.0

6.0
- .3
-.1
.9
6.9
- 2 .7
.4
.5

10.0
1.3
10.6
.9
17.4
- 2 .5
- .8
- .5

1.2
13.1
1.0
16.4
- 2 .2
- 1 .2
.9

12.2
5.8
19.7
1.0
18.7
- 1 .3
- .6
5.9

4.2
2.8
13.1
1.1
20.6
- 1 .3
- .4
8.0

287.5
- 2 .4
15.8

316.0
.4
9.9

435.0
- 1 .2
7.0

481.1
- .6
3.1

485.3
- .4
4.2

274.1

305.7

363.7
- .8
2.5
10.0

98.6
29.0
41.7
146.7
34.4
35.9
11.9
31.0

- 1 .3
.1
.9
6.0
- 2 .1
- 2 .4
- .5

All sectors
61 Total funds raised, by instrument............... 261.4
62 Investment company shares.................... - 1 .2
10.4
63 Other corporate equities.........................
64 Debt instruments ....................................... 252.3
65
U.S. government securities..................
28.3
66
State and local obligations..................
14.7
67
Corporate and foreign bonds..............
13.6
Mortgages.............................................
68
79.9
69
Consumer credit................................... 23.8
70
Bank loans n.e.c...................................
51.6
71
Open market paper and RPs..............
21.2
72
Other loans...........................................
19.1




225.1 219.8
- .1
- .7
4.8
10.8
221.0 209.1
34.3
98.2
15.6
16.5
23.9
36.4
57.2
60.5
10.2
9.4
38.3 - 1 3 .9
14.8 - 2 . 4
22.6
8.7

301.7
- 1 .0
12.9

399.4
- 1 .0
4.8

289.8

395.6

88.1
19.0
37.2
87.1
23.6
6.4
13.3
15.3

84.3
29.2
36.1
134.0
35.0
32.2
19.8
25.1

483.2
- .5
3.6
480.1

92.8
29.8
32.1
145.9
50.5
50.2
42.8
36.1

91.9
19.3
36.1
77.7
22.9
.1
13.3
12.9

84.3
18.7
38.4
96.4
24.3
12.6
13.3
17.7

362.0
29.3
30.5

121.2
35.7
28.4
27.6
19.2

429.2

478.6

100.4
28.5
32.3
140.3
49.8
48.2
43.7
35.4

481.5

85.2
30.8
31.8
151.5
51.3
52.2
41.9
36.8

Flow o f Funds
1.58

D IR E C T A N D IN D IR E C T S O U R C E S O F F U N D S T O C R E D IT M A R K E T S
Billions o f dollars, except as noted; quarterly data are at seasonally adjusted annual rates.

Transaction category, or sector

1 Total funds advanced in credit markets to
nonfinancial sectors...............................
2
3
4
5
6
7
8
9
10
11

By public agencies and foreign
Total net advances........................................
U.S. government securities....................
Residential mortgages.............................
FHLB advances to S&Ls.......................
Other loans and securities.......................
Totals advanced, by sector
U.S. government.....................................
Sponsored credit agencies.......................
Monetary authorities...............................
Foreign......................................................
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.............................
Private financial intermediation
19 Credit market funds advanced by private
financial institutions ..............................
20 Commercial banking...............................
21
Savings institutions..................................
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
32
33
34
35
36
37

A45

Other sources .............................................

Foreign funds.......................................
Treasury balances.................................
Insurance and pension reserves..........
Other, net..............................................

Private domestic nonfinancial investors
Direct lending in credit m arkets ..................
U.S. government securities....................
State and local obligations......................
Corporate and foreign bonds..................
Commercial paper....................................
Other..........................................................

1973

1974

196.1

184.9

34.1
9.5

52.6

1975

198.0

1976

261.7

1977

1976

1978

1978

HI

H2

HI

H2

HI

H2

337.4

387.4

245.9

277.5

301.0

373.8

376.8

398.0

85.4

49.7

101.6

103.5

102.0

8.2
7.2
9.2

11.9
14.7
6.7
19.4

22.5
16.2
- 4 .0
9.5

26.8
12.8
- 2 .0
16.9

40.2
20.4
4.3
20.5

102.8
43.1
24.6
12.5
22.6

24.4
11.8
- 1 .5
15.0

59.3
29.3
13.7
- 2 .5
18.8

69.3
27.2

20.0
3.4
18.6

20.9
5.2
22.4

42.7
23.5
14.1
23.3

2.8
21.4
9.2
.6
19.9

9.7
25.6
6.2
11.2
23.1

15.1
14.5
8.5
6.1
13.5

8.9
20.6
9.8
15.2
18.6

11.8
26.9
7.1
39.5
26.3

18.3
44.0
7.0
33.5
39.0

6.3
20.0
13.7
9.7
18.2

11.5
21.2
6.0
20.6
19.0

6.1
26.7
10.2
26.4
25.0

17.6
27.2
4.1
52.7
27.5

19.2
44.9
12.9
26.4
41 .5

17.4
43.2
1.0
40.5
36.5

182.0

155.3

167.3

225.7

278.2

323.6

214.4

237.1
55.1
18.7
32.3
59.7
68.9
- 2 .5

256.8

299.7
45.4

314.8

57.7
28.5
22.4
84.9
135.4
14.1

332.5

29.0
27.3
91.6
111.5
5.2

207.9
69.4
72.4

241.1

258.0

283.7

50.2
15.9

90.5
84.3
63.7
19.4

120.4
77.2
69.4
16.6

295.5

81.1
85.3
60.3
14.5

174.4

207.9

241.1

258.0

283.7

295.5

119.4
60.3

129.6
47.0

56.1
.7

64.1
9.5
-2 .5

78.2
.7

85.1
22.4

104.0

33.8
23.4

10.4
50.4
1.9

4.0
- .7
55.9
44.9

118.9

- 1 .8
45.5
33.7

91.4

18.8
14.7
10.0
48.4
97.2
7.2

165.4

86.5
36.9
23.9
18.0

165.4

86.6
36.2

42.5

22.4
16.5
20.9
26.9
75.4
6.7

126.2

64.5
26.9
30.0
4.7
126.2

69.4
13.0

43.8

44.3

75.7
15.6
32.8
23.2
16.1
- 4 .0

119.9

27.6
52.0
41.5
- 1 .1

54.5

61.3
19.0
30.5
52.7
60.4
- 2 .0

191.2

58.0
71.4
51.7
10.1

119.9

191.2

31.9
.9

60.1

90.6
- 2 .5

121.5
9.6

44.1
29.2
22.3
83.2
103.7
4.3

49.7
29.6
23.4
86.9
146.6
12.5

249.6

289.6

85.8
84.8
62.0
16.9

119.2
79.1
71.4
19.9

249.6

289.6

136.0
32.0

124.5
53.7

81.6

111.4

15.7
9.7

5.8
- 1 .0
18.4
19.4

16.8
- 5 .1
26.0
6.0

- 1 .7
29.6
3.1

5.1
-.1
34.8
20.3

11.6
4.3
48.0
17.8

57.0

52.8

4 2.2

87.7

19.2
5.4
1.3
18.3
8.6

46.6
70.5
53.2
4.2

108.3
10.0

2.3
35.8
17.2

134.6
9.2

127.0
36.0

145.0
28.0

10.9
21.8

41.6
30.8
24.3
88.9
157.8
10.9

117.9
81.0
73.4
23.2

27.5
20.1
58.2
13.1

23.0
8.3
8.0
- .8
6.4

44.1

60.6

24.6
9.1
1.1
9.5
16.2

33.1
8.8
- .9
27.8
18.8

25.0
7.6
2.9
4.8
9.7

50.0

38.4

51.6

69 .6

35.2
10.1
1.8
6.0
16.5

36.3
10.8
- 2 .6
28.8
18.2

30.0
6.8
.8
26.9
19.5

75.7

96.8

128.8

144.3

133.8
117.8

114.3
99.5

143.3
125.0

132.6
110.5
- 4 .4

156.0
129.7
22.9

129.5

138.0
125.5

45.3
69.6

38.2
68.7

110.2
10.3
45.0
54.9

19.6
6.8
2.1
4.1
11.5

43
44
45

M oney ........................................................

14.4

8 .9

2.6
6.3

12.0
5.8
6.2

16.6

46 Total of credit market instruments, de­
posits and currency...............................

143.4

10.5
3.9

174.4

42.8
29.3
17.2
74.9
96.0
3.4

43.6
25.7

44.9

90.6
76.1

18.1
29.6
28.5

29.0

67.5
19.3
28.6
45.6
51.9
- 1 .5

53.2

17.5
9.3
4.7
2.4
8.2

38 Deposits and currency...................................
39
Time and savings accounts .......................
40
Large negotiable CDs.........................
41
Other at commercial banks.................
42
At savings institutions.........................
Demand deposits..................................
Currency................................................

1977

84.8
112.2
18.8 -1 4 .1 - 1 4 .4
26.1
39.4
58.1
21.8
59.4
68.5

6 6 .7

9.3
7.3

120.1
9.3
41.7
69.1

14.1
6.0
1.3
3.4
13.5

14.1
8.2
.4
13.0
15.9

84.0

13.8
42.8
61.3

-1 9 .8
52.0
67.3

- 9 .1
64.3
69.8

24.2

15.9

14.8

18.3

9.6
8.6

22.1
16.5
5.6

26.3

19.3

12.5

15.9
8.3

6.6
9.3

8.9
6.0

15.3
11.0

9.2
10.1

17.3
40.5
67.7
4.1
8.5

117.8

141.6

172.9

204.9

221.5

164.3

181.6

184.2

225.6

220.9

222.0

Public support rate (in percent)............
Private financial intermediation (in per­
cent) ...................................................
Total foreign funds...................................

17.4

28.5

22.4

20.8

25.3

26.5

20.2

21.4

23.0

27.2

27.5

25.6

90.9
6.4

81.3
28.0

71.7
7.1

84.7
20.3

89.7
51.1

89.5
49.2

81.3
10.4

87.7
30.1

93.9
27.1

86.1
75.1

90.1
30.4

88.9
68.0

Memo: Corporate equities not included
above
50 Total net issues.............................................
51
Mutual fund shares..................................
52 Other equities...........................................
53 Acquisitions by financial institutions.........
54 Other net purchases.....................................

9.2
- 1 .2
10.4
13.3
- 4 .1

4.1
- .7
4.8
5.8
- 1 .6

10.7
-.1
10.8
9.7
1.0

11.9
- 1 .0
12.9
12.5
- .7

3.8
- 1 .0
4.8
6.2
- 2 .4

3.1
- .5
3.6
4.9
- 1 .7

13.4
- 2 .4
15.8
13.1
.3

10.4
.4
9.9
12.0
- 1 .6

1.7
- .8
2.5
6.1
- 4 .4

5.8
- 1 .2
7.0
6.3
-.5

2.5
- .6
3.1
1.7
.8

3.8
- .4
4.2
8.0
- 4 .2

47
48
49

N otes by line number.
1. Line 2 of p. A-44.
2. Sum of lines 3-6 or 7-10.
6. Includes farm and commercial mortgages.
11. Credit market funds raised by federally sponsored credit agencies,
and net issues of federally related mortgage pool securities. Included
below in lines 3, 13, and 33.
12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32.
Also sum of lines 27, 32, 39, and 44.
17. Includes farm and commercial mortgages.
25. Sum of lines 39 and 44.
26. Excludes equity issues and investment company shares. Includes
line 18.
28. Foreign deposits at commercial banks, bank borrowings from foreign
branches, and liabilities of foreign banking agencies to foreign af­
filiates.




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.
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. Sum of lines 10 and 28.
50. 52. Includes issues by financial institutions.
N ote. Full statements for sectors and transaction types quarterly,
and annually for flows and for amounts outstanding, may be obtained
from Flow of Funds Section, Division of Research and Statistics, Board
of Governors of the Federal Reserve System, Washington, D.C. 20551.

A46

D om estic N o n fin an c ial Statistics □ A p r il 1979

2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures
1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted.

1976

Measure

1 Industrial production..................................................

129.8

1977

1978

1978

1979

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

137.1

145.2

147.1

147.8

148.7

149.6

150.9

150.9

151.0

152.2

137.1

144.3

146.2

146.5

147.0

143.3
148.4
136.3
156.4
148.6

143.7
149.0
136.4
157.0
149.7

144.1
149.2
137.0
158.0
151.4

147.7

149.1

149.4

149.7

150.7

2
3
4
5
6
7

Market groupings:
Products, tota l ..................................................... 129.3
Final, total...................................................... 127.2
Consumer goods......................................... 136.2
Equipment................................................... 114.6
Intermediate.................................................... 137.2
Materials................... ......................................... 130.6

8

Industry groupings:
Manufacturing....................................................

129.5

137.1

145.6

147.6

148.7

149.5

150.4

151.8

152.0

152.1

153.3

Capacity utilization (percent)1
9 Manufacturing........................................................
10 Industrial materials industries...............................

80.2
80.4

82.4
81.9

84.2
84.9

85.0
85.9

85.3
86.3

85.5
87.1

85.8
87.6

86.3
86.1

86/1
87.5

85.9
87.1

86.3
87.9

11 Construction contracts2............................................

134.9
143.4
123.2
145.1
136.9

141.4
147.4
133.1
155.3
146.5

144.5
149.7
137.3
159.3
152.7

145.6
150.6
138.7
161.8
153.8

145.9
150.6
139.4
162.3
153.3

146.2
150.7
140.1
162.9
153.0

147.3
151.9
140.9
163.4
154.6

190.2

160.5

174.3

177.0

182.0

193.0

173.0

184.0

181.0

231.0

n.a.

12 Nonagricultural employment, total3.......................... 120.7
13 Goods-producing, total.....................................
100.2
14
Manufacturing, total..........................................
97.7
15
Manufacturing, production-worker..................
95.3
16 Service-producing................................................... 131.9

125.0
104.2
101.0
98.6
136.4

130.3
108.9
104.5
102.1
142.1

130.9
109.2
104.3
101.6
142.8

131.0
109.3
104.3
101.6
142.9

131.6
110.1
105.1
102.4
143.4

132.3
111.0
105.9
103.5
144.0

133.5
111.7
106.6
104.3
144.2

133.0
112.0
107.1
104.8
144.5

133.5
112.4
107.5
105.3
145.0

134.0
113.0
107.8
105.7
145.5

17 Personal income, total4.............................................. 220.4
18 Wages and salary disbursements........................... 189.3
19 Manufacturing........................................................ 177.1

244.0
230.1
198.6

272.5
257.5
223.6

276.3
260.0
224.5

278.4
262.0
226.4

282.2
266.1
230.3

285.0
268.8
234.8

288,5
271.5
238.0

290.3
274.4
238.0

292.4
276.8
241.0

295.4
280.2
247.0

20 Disnnsahle nersonal incnme......................................

176.8

194.5

216.7

219.2

21 Retail sales5........................... ....................................

203.5

224.4

248.0

251.7

253.5

257.5

262.0

265.3

266.3

n.a.

n.a.

Prices:6
22 Consumer7..............................................................
23 Producer finished goods8......................................

170.5
170.3

181.5
180.6

195.4
194.6

197.8
195.3

199.3
196.9

200.9
199.7

202.0
200.6

202.9
202.4

204.7
205.2

207.1
207.4

n.a.
208.8

1 Ratios of indexes of production to indexes of capacity. Based on data
from Federal Reserve, McGraw-Hill Economics Department, and De­
partment of Commerce.
2 Index of dollar value of total construction contracts, including
residential, nonresidential, and heavy engineering, from McGraw-Hill
Informations Systems Company, F. W. Dodge Division.
3 Based on data in Employment and Earnings (U.S. Department of
Labor). Series covers employees only, excluding personnel in the Armed
Forces.
4 Based on data in Survey o f Current Business U.S. Department of Com­
merce). Series for disposable income is quarterly.
5 Based on Bureau of Census data published in Survey o f Current
Business (U.S. Department of Commerce).
6 Data without seasonal adjustment, as published in Monthly Labor

2.11

226.0

na

Review (U.S. Department of Labor). Seasonally adjusted data for changes

in the price indexes may be obtained from the Bureau of Labor Statistics,
U.S. Department of Labor.
7 Beginning Jan. 1978, based on new index for all urban consumers.
8 Beginning with the November 1978 Bulletin, producer price data
in this table have been changed to the BLS series for producer finished
goods. The previous data were producer prices for all commodities.

N ote. Basic data (not index numbers) for series mentioned in notes
3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be
found in the Survey o f Current Business (U.S. Department of Commerce).
Figures for industrial production for the last two months are preliminary
and estimated, respectively.

OUTPUT, CAPACITY, AND CAPACITY UTILIZATION
Seasonally adjusted
1979

1978

Series
Q2

Q3

Q4r

Ql

Output (1967 = 100)

1978
Q2

Q3

1979
Q4

Ql

Capacity (percent of 1967 output)

1978
Q2

Q3

1979
Q4

Ql

Utilization rate (percent)

1 Manufacturing..............................................

144.4

147.7

150.6

152.5

172.0

173.7

175.4

177.1

84.0

85.0

r85.9

86.1

2
3

Primary processing...................................
Advanced processing...............................

154.1
139.3

158.2
142.1

161.9
144.5

162.6
147.2

178.5
168.5

180.2
170.2

181.9
171.8

183.8
173.4

86.3
82.7

87.8
83.5

89.0
84.1

88.5
84.9

4 Materials......................................................

145.1

148.7

152.6

153.6

171.7

173.0

174.2

175.6

84.5

86.0

87.6

87.5

Durable goods.......................................... 144.0
Basic metal........................................... 117.5
Nondurable goods................................... 163.2
Textile, paper, and chemical............. . 167.7
Textile............................................... 117.1
Paper................................................. 139.7
Chemical........................................... 201.4
Energy...................................................... 125.5

150.4
124.6
163.2
168.4
117.3
134.8
204.4
127.0

155.2
129.4
166.9
172.2
119.4
137.2
209.5
128.7

156.0
n.a.
169.3
175.0
n.a.
n.a.
n.a.
128.7

175.2
146.1
184.4
193.1
144.1
154.8
230.1
147.8

176.3
146.5
186.5
195.4
144.7
155.8
233.5
148.4

177.4
146.8
188.5
197.5
145.2
156.9
236.8
148.9

178.4
n.a.
190.7
199.8
n.a.
n.a.
n.a.
150.2

82.2
80.4
88.5
86.8
81.2
90.3
87.5
84.9

85.3
85.1
87.5
86.2
81.0
86.5
87.5
85.6

87.5
r8 8.1
88.5
87.2
82.2
r87.4
88.5
r86.4

87.4
n.a.
88.8
87.6
n.a.
n.a.
n.a.
85.7

5
6
7
8
9
10
11
12




Labor Market
2 .1 2

A 47

LABO R FO RCE, EM PLO Y M EN T, A N D U N EM PLO Y M EN T
Thousands o f persons; monthly data are seasonally adjusted. Exceptions noted.

Category

1976

1977

1978

1978
Sept.

Oct.

1979
Nov.

Dec.

Jan.

Feb.

Mar.

Household survey data

2 Labor force (including Armed
Forces)1.......................................
3 Civilian labor force.............................
Employment:
4
Nonagricultural industries2........
Agriculture...................................
5
Unemployment:
Number.......................................
6
7
Rate (percent o f civilian labor
force ).....................................
8 Not in labor force...............................

156,048

158,559

161,058

161,570

161,829

162,033

162,250

162,448

162,633

162,909

96,917
94,773

99,534
97,401

102,537
100,420

103,097
100,974

103,199
101,077

103,745
101,628

103,975
101,867

104,277
102,183

104,621
102,527

104,804
102,714

84,188
3,297

87,302
3,244

91,031
3,342

91,604
3,406

91,867
3,374

92,476
3,275

92,468
3,387

93,068
3,232

93,335
3,311

93,499
3,343

7,288

6,855

6,047

5,964

5,836

5,877

6,012

5,883

5,881

5,871

7.7

7 .0

6.0

5 .9

5 .8

5 .8

5 .9

5 .8

5.7

5.7

59,130

59,025

58,521

58,473

58,630

58,288

58,275

58,170

58,012

58,105

r87,524
'20,825
r905
r4 ,381
'4,974
'19,817
'4,809
'16,352
'15,461

'87,832
'20,902
'916
'4,383
'5,004
'19,910
'4,828
'16,427
'15,462

*>88,156
*20,972
P917
*>4,454
*>5,031
*>19,999
*>4,844
*>16,444
*>15,495

Establishment survey data4
9 Nonagricultural payroll employment3
10 Manufacturing.................................
11 Mining.............................................
12 Contract construction.....................
13 Transportation and public utilities.
14 Trade................................................
15 Finance............................................
16
17 Government....................................

79,382
18,997
779
3,576
4,582
17,755
4,271
14,551
14,871

82,256
19,647
809
3,833
4,696
18,492
4,452
15,249
15,079

85,760
20,331
837
4,213
4,858
19,392
4,676
15,976
15,478

1 Persons 16 years of age and over. Monthly figures, which are based
on sample data, relate to the calendar week that contains the 12th day;
annual data are averages of monthly figures. By definition, seasonality
does not exist in population figures. Based on data from Employment
and Earnings (U.S. Dept, of Labor).
2 Includes self-employed, unpaid family, and domestic service workers.
3 Data include all full- and part-time employees who worked during,
or received pay for, the pay period that includes the 12th day of the
month, and exclude proprietors, self-employed persons, domestic servants,




86,163
20,286
887
4,298
4,855
19,546
4,719
16,127
15,445

86,573
20,436
893
4,341
4,922
19,632
4,737
16,169
15,443

87,036
20,601
903
4,368
4,947
19,701
4,774
16,270
15,472

87,281
20,729
904
4,397
4,967
19,697
4,789
16,327
15,471

unpaid family workers, and members of the Armed Forces. Data are
adjusted to the February 1977 benchmark. Based on data from Employ­

ment and Earnings (U.S. Dept, of Labor).

4 The establishment survey data in this table have been revised to
conform to the industry definitions of the 1972 Standard Industrial
Classification (SIC) Manual and to reflect employment benchmark
levels for March 1977. In addition, seasonal factors for these data have
been revised, based on experience through May 1978.

A48

D om estic N o n fin an c ial Statistics □ A p r il 1979

2.13 INDUSTRIAL PRODUCTION

Indexes and Gross Value

Monthly data are seasonally adjusted.

Grouping

1967
pro­
por­
tion

1978
average*

1978
Jan.

Feb.

Mar.

July

Aug.

1979
Sept.

Oct.

Nov.

Dec . r Jan.

Feb.r Mar..

Index (1967 = 100)
MAJOR MARKET
100.00 145.2 138.8 139.2 140.9 146.1 147.1 147.8 148.7 149.6 150.9 150.9 151.0 152.2

1
3 Final products ........................................
Consumer goods................................
4
Equipment..........................................
5
6 Intermediate products...........................
7 Materials....................................................
8
9
10
11
12

Consumer goods

Durable consumer goods ........................

60.71 144.3 138.5 139.6 141.6 145.0 146.2 146.5 147.0 147.7 149.1 149.4 149.7 150.7

47.82 141.4 134.9 136.4 138.9 142.2

147.4
133.1
155.3
146.5

141.8
125.4
151.6
139.2

143.8
126.2
151.4
138.6

145.9
129.1
151.4
139.9

160.3 161.6 161.8 161.9 160.9 161.0 164.1

162.8
153.9
131.5
185.3

175.8
171.0
149.7
188.5

182.2
176.7
152.7
196.1

13
14
15
16
17

Home goods......................................
Appliances, A/C, and TV.............

5.06
1.40
1.33
1.07
2.59

147.8
132.5
134.5
164.3
149.3

140.3
116.1
117.4
159.1
145.9

144.6
133.3
135.7
160.2
144.3

147.2
135.4
137.9
159.3
148.7

148.9
133.7
136.8
168.5
149.1

18
19
20
?1

Nondurable consumer goods ..................

19.79 142.8 139.9

140.8

22
23
24
25
26

Nonfood staples.............................
Consumer chemical products. ..
Consumer paper products.........
Consumer energy products.......
Residential utilities.................

156.2
187. 1
118.1
153.2
161.5

155.8
184.3
118.8
154.5
167.6

Equipment

Business..................................................

147.3

161.5

157.5
145.5
127.4
187.8

27
28
29
30
31

145.6 145.9 146.2

7.89 158.9 146.5 151.2 157.5 160.9

178.6
172.5
148.5
194.0

182.1
175.6
151.1
198.0

149.2
137.0
158.0
151.4

144.5

149.0
136.4
157.0
149.7

2.83
2.03
1.90
80

Clothing..............................................
Consumer staples...............................
Consumer foods and tobacco.......

143.7 144.1

148.4
136.3
156.4
148.6

Automotive products........................
Autos and utility vehicles.............
Autos..........................................
Auto parts and allied goods.........

Miscellaneous home goods...........

143.3

147.7
134.7
155.6
147.9

27.68
20.14
12.89
39.29

149.7
137.3
159.3
152.7

150.6
138.7
161.8
153.8

150.6
139.4
162.3
153.3

150.7
140.1
162.9
153.0

151.9
140.9
163.4
154.6

178.3
170.0
144.4
199.8

185.6
180.5
154.2
199.1

189.0
185.0
159.7
199.0

185.1
179.3
151.8
200.1

181.5
173.7
145.9
201.8

179.1
170.7
144.9
200.7

150.0
133.9
135.6
167.9
151.3

150.2
134.4
136.9
169.0
150.8

148.2
128.7
129.9
168.0
150.6

146.5
123.4
124.4
164.9
151.3

148.9
129.1
129.8
166.8
152.0

149.2
125.9
126.8
170.1
153.1

151.0 152.2
130.5 131.9
131.6
171.2
153.9 145.9

141.3

142.4 143.1

144.4

144.3 144.8 146.2

146.7 146.6

155.3
182.1
118.9
155.0
166.9

155.5
186.7
117.5
151.9
159.9

155.9
188.0
117.3
152.0
160.1

157.4
191.9
118.2
153.3
160.9

158.5
191.9
117.6
155.4
162.8

161.0
196.4
119.1
156.2

185.4
179.2
153.7
201.1

147.0

4.29 125.5 118.3 121.1 122.4 125.1 126.6 128.9 128.3
130.1 130.2
15.50 147.6 145.9 146.3 146.4 147.3 147.8 148.8 148.8 '\4 9 .2 150.6 151.1 151.5 152.1
8.33 140.1 136.5 138.3 138.7 140.2 140.8 141.2 140.4 141.0 143.0 142.6 143.1
7.17
2,63
1.92
2.62
1.45

156.6
187.4
121.4
151.5
161.7

12.63 162.0 152.6

158.8
190.7
117.6
156.7
162.1

159.6
193.2
116.9
156.9
161.1

154.2 157.4 163.8 165.4 165.8 166.9 167.2 168.7

161.4 161.4
197.2
120.4
155.4

169.7 170.1

171.0

Industrial............................................
Building and mining......................
Manufacturing...............................
Power..............................................

6.77
1.44
3.85
1.47

149.9
223.4
121.9
151.0

144.3
211.1
118.8
146.1

144.6
214.9
117.7
145.8

146.9
221.7
118.3
148.8

151.9
228.9
122.6
152.8

152.8
228.1
123.9
154.6

152.7
226.3
124.4
154.8

152.9
226.5
125.0
154.0

151.8
223.8
124.2
153.4

152.2
222.3
124.7
155.6

145.7
222.0
127.8
158.5

155.4
223.0
128.4
159.5

Commercial transit, farm.................
Commercial....................................
Transit.............................................
Farm...............................................

5.86
3.26
1.93
67

176.0
208.6
133.8
138.9

162.2
198.5
111.1
131.4

165.5
200.9
115.9
134.8

169.4
202.0
126.1
137.0

177.5
210.6
134.9
138.5

179.9
212.2
138.5
141.3

180.8
214.1
138.6
142.0

182.9
215.1
142.6
143.2

184.9
214.9
147.5
145.8

187.8
217.1
151.0
151.5

186.8
217.9
147.6
149.5

186.9 188.4
217.9 218.9
147.1 149.5
151.0

36

7.51

84.5

79.7

79.2

81.9

85.9

87.1

87.1

86.7

87.2

87.9

88.7

Intermediate products
37 Construction supplies...........................
38 Business supplies...................................
39
Commercial energy products............

6.42
6.47

32
33
34
35

40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58

Materials
Durable consumer parts...................
Durable materials n.e.c.....................
Basic metal materials.....................
Nondurable goods materials ............

Textile, paper, and chemical
materials.....................................
Textile materials.............................
Paper materials..............................
Chemical materials........................
Containers, nondurable.....................
Nondurable materials n.e.c...............
Primary energy...................................
Converted fuel materials...................

Supplementary groups
Home goods and clothing....................
Products.............................................

For N ote see opposite page.




89.8

156.1
223.1
129.0
160.9

90.1

153.3 149.2 148.6 147.9 153.5 154.7 155.6 157.0 159.0 160.8 161.2 161.7 162.0
157.3 153.8 154.2 155.0 157.6 158.2 158.4 159.2 159.9 162.7 163.3 164.1
1.14 166.5 165.5 165.6 164.3 164.1 167.4 169.9 168.8 168.8 170.0 169.2 168.9

20.35

4.58
5.44
10.34
5.57

146.9 138.2 137.0 138.6 148.7 150.4 152.1

140.3
159.1
143.4
120.4

133.0
148.7
134.9
110.2

131.1
146.6
134.6
111.0

133.1
151.3
134.5
110.4

10.47 162.9 155.0 158.5 160.5

142.0
161.7
144.7
121.7

142.2
162.9
147.6
125.4

144.8
164.6
148.7
126.7

154.0 154.9 156.8 155.7 155.4 156.8

147.3
166.0
150.5
128.2

147.4
167.6
151.6
129.1

148.4
170.5
153.6
130.9

147.8
170.5
151.2
125.4

146.0 147.5
171.4 172.5
151.2 152.6
125.0

162.5 162.7 164.4 165.7 167.8 167.1

168.6 169.0 170.2

167.9
1.85 117.2
1.62 137.1
4.15 202.6

160.7
114.9
135.0
191.4

162.8
115.8
136.8
194.2

165.7
115.1
137.8
199.2

168.3
117.1
135.1
204.0

167.0
116.0
131.5
203.7

170.0
118.7
137.7
205.5

171.0
118.7
137.3
207.6

173.3
120.4
137.6
210.7

172.3
119.0
136.6
210.3

174.0
118.6
133.5
214.3

174.7 176.2
117.9
137.4
214.8

1.70
1.14
8.48
4.65
3.82

160.5
133.2
125.2
112.7
140.5

150.4
123.6
122.2
105.2
142.8

158.7
128.9
117.7
101.0
138.0

158.1
129.3
117.5
104.5
133.3

155.4
135.7
127.9
116.7
141.6

161.8
134.8
127.0
115.4
141.3

161.1
131.8
126.0
111.8
143.4

163.4
134.5
128.0
115.9
142.7

165.6
134.5
128.4
117.4
141.8

165.5
135.4
129.6
116.9
145. 1

167.6
133.7
128.5
113.4
146.7

167.5
133.3
127.8 130.1
111.9
147.2

9.35
12.23
3.76
8.48

137.6
135.1
157.2
125.2

130.2
132.5
155.8
122.2

133.8
130.0
157.9
117.7

135.9
129.8
157.9
117.5

138.0
136.4
155.6
127.9

139.2
136.1
156.7
127.0

140.3
135.9
158.3
126.0

139.1
137.6
159.3
128.0

138.5
138.2
160.4
128.4

140.2
139.3
161.0
129.6

140.5
138.1
160.2
128.3

141.1 141.4
137.5 139.1
159.5
127.8 130.1

7.62

Output

2 .1 3

C o n tin u e d

Grouping

SIC
code

1967
pro­
por­
tion

1978
average*>

1978
Jan.

Feb.

Mar.

July

Aug.

1979
Sept.

Oct.

Nov.

Dec.r Jan.

144.1

144.5

Feb. r Mar.

Index (1967 == 100)

MAJOR INDUSTRY
12.05 . 141.6 137.4

137.7 138.2 142.6 142.5 142.1

145.0 143.5 143.1

144.3

87.95

139.4 141.4 146.7 147.6 148.7 149.5 150.4 151.8 152.0 152.1

153.3

6.36 124.2 115.0 114.4 119.3 127.1 126.0 124.1 127.6 128.1 111 .6 123.7 122.1 124.8
5.69 161.0 162.3 163.5 159.5 159.9 160.8 162.3 162.4 162.9 164.3 165.7 166.6 166.2
3.88 182.2 ,83.6 184.3 .178.8 182.1 183.2 184.4 184.1 185.0 186.6

'J

4

Utilities......................................
Electric...................................

145.7 138.7

35.97 154.8 149.8 150.6 151.4 155.0 155.6 157.1 157.4 158.5 159.6 160.6 160.6 161.5
51.98 139.3 131.1 131.5 134.4 141.1 142.2 142.8 144.0 144.8 146.4 146.1 146.3 147.7

6
7
Mining
Coal............................................
Oil and gas extraction..............
Stone and earth minerals..........

10
11,12
13
14

.51
.69
4.40
.75

121.0 121.4 119.9 127.6
115.7 54.8 56.5 78.4
124.7 121.1 120.4 123.3
131.1 130.0 129.1 128.2

1?
n
14
15
16

Nondurable manufactures
Foods.........................................
Tobacco products.....................
Textile mill products.................
Apparel products......................
Paper and products...................

20
21
22
23
26

8.75
.67
2.68
3.31
3.21

142.9
119.2
140.0
126.3
144.5

139.3
113.4
137.1
118.6
139.9

140.8
117.7
136.4
121.1
143.9

17
18
19
20
21

Printing and publishing............
Chemicals and products...........
Petroleum products...................
Rubber and plastic products...
Leather and oroducts................

27
28
29
30
31

4.72
7.74
1.79
2.24
.86

129.9
190.7
144.2
254.8
74.1

129.9
184.4
139.7
238.7
74.5

128.3
183.7
139.0
240.0
73.0

Durable manufactures
Ordnance, private and govern­
ment ...................................
23 Lumber and products...............
24 Furniture and fixtures..............
25 Clay, glass, stone products. . . .

19,91
24
25
32

3.64 73.7 72.3 71.2 72.7 75.2 75.2 74.3 73.9 73.6 74.2 73.4 73.5
1.64 138.9 138.5 135.5 136.5 138.1 136.9 139.2 141.2 142.5 146.0 143.0 140.2
1,37 154.7 146.4 150.1 149.5 158.1 159.0 160.7 160.9 157.6 156.7 161.7 162.3
2.74 159.2 152.2 152.6 154.2 158.8 159.5 160.9 162.1 166.3 167.7 168.6 168.6

26
27
28
29
30

Primary metals..........................
Iron and steel.........................
Fabricated metal products.......
Nonelectrical machinery...........
Electrical machinery.................

33
331,2
34
35
36

6.57
4.21
5.93
9.15
8.05

31
32
33

Transportation equipment........
Motor vehicles and parts.. . .
Aerospace and miscellaneous
transportation equip­
ment ...............................
Instruments...............................
Miscellaneous manufactures. . .

37
371

8
9
10
11

22

34
35

A49

372-9
38
39

119.0
113.2
142.6
155.6
154.3

107.4
99.5
136.9
150.1
144.0

106.2
96.3
136.9
150.1
146.4

117.0
131.7
126.8
131.3

117.9
124.9
126.2
131.6

115.6
114.7
124.9
133.8

122.1
114.7
124.5
134.0

125.3
145.1
124.9
132.9

141.1
115.6
135.1
122.8
144.9

142.9
120.8
141.0
124.5
140.5

144.0
118.6
139.5
127.2
141.9

144.4
120.6
142.2
130.9
142.3

143.2
119.0
142.1
130.6
145.8

144.2 145.7 145.8 146.2
121.5 122.0 122.0
143.9 144.9 144.4 142.7
131.4 132.9
145.3 147.8 144.9 146.3 148.0

129.1
185.2
140.1
243.1
72.1

130.3
192.3
144.3
259.1
74.5

129.5
192.2
144.1
261.1
74.0

131.0
194.2
147.1
263.1
74.1

130.5
195.9
147.1
264.1
73.8

132.1
197.6
148.9
264.2
74.1

106.1
96.4
138.1
151.5
149.5

123.0
119.0
144.0
156.1
157.9

126.0
120.9
145.8
157.3
156.9

127.9
123.2
146.3
158.7
158.3

128.6
123.8
146.0
160.3
157.9

129.0
124.1
146.9
160.3
159.0

123.9
146.8
123.8
134.2

133.0
197.9
149.9
267.0
74.0

130.4
124.5
149.0
161.8
161.9

123.0
116.0
123.0
136.3

135.8
200.7
148.5
268.1
75.7

122.8
113.4
151.0
163.7
163.9

124.3
104.0 124.0
122.2 122.8
136.5

136.6 137.8
201.3
146.1 146.9
268.9
75.3

122.5
113.5
151.7
164.4
165.1

73.1

124.9
i 52! 5
165.3
166.4

9.27 130.5 116.2 118.4 126.5 132.1 133.4 132.8 137.0 139.3 139.5 137.6 136.9 140.3
4.50 168.3 146.6 153.1 165.1 169.7 171.0 168.9 176.8 180.8 179.7 174.4 171.4 177.1
4.77
2.11
1.51

94.9 87.6 85.8 90.1 96.5 98.3 98.9 99.6 100.2 101.7 103.0 104.5 105.7
171.6 163.4 163.5 168.7 172.2 175.4 174.6 175.3 172.2 179.5 180.4 181.1 182.5
153.3 153.0 151.8 153.7 153.2 153.8 154.1 153.9 152.1 153.7 154.8 156.3 157.0
Gross value (billions of 1972 dollars, annual rates)

MAJOR MARKET
36 Pro Hurts, total...............................
37 Final...........................................
Consumer goods...................
38
39
Equipment.............................

1507.4
1590.9
1277.5
U13.4

40

H16.6 140.4 136.7 137.0 137.5 140.7 141.4 141.9 142.6 144.0 145.6 145.8 146.2 147.7

Intermediate...............................

609.6 582.0 591.2 601.1 610.3 613.3 613.6 621.3 625.3 632.0 630.2 630.9 635.1

469.3 445.1 454.4 463.5 469.6 472.2 471.8 478.8 481.6 486.6 484.1 484.6 487.6

324.0 311.2 318.6 321.6 323.4 324.7 324.4 328.1 330.8 332.3 331.3 330.6 332.2
145.3 133.9 135.8 142.0 146.4 147.5 147.7 150.6 150.9 154.3 152.8 154.0 155.3

1 1972 dollars.
Note. Published groupings include some series and subtotals not




shown separately. For description and historical data, see Industrial
Production—1976 Revision (Board of Governors of the Federal Reserve
System: Washington, D.C.), December 1977.

A 50

D om estic N o n fin a n c ia l Statistics □ A p r il 1979

2.14 HOUSING AND CONSTRUCTION
Monthly figures are at seasonally adjusted annual rates except as noted.

Item

1976

1977

1978

1978
Aug.

Sept.

1979

Oct.

Nov.

Dec.

Jan.'

Feb.

1,664

1,324

1,321

2,107

2,062

1,502
597

1,529
533

1,699

1,411

1,337

1,355

1,378

n.a.
n.a.
n.a.

1,885

1,872

1,375
510

1,405
467

1,814

n.a.
n.a.
n.a.

Private residential real estate activity
(thousands of units)
NEW UNITS
1,296

1,677

1-family............................................
2-or-more-family.............................

894
402

1,126
551

4 Started .................................................
5
1-family...........................................
6 2-or-more-family.............................

1,538

1,986

7 Under construction, end o f period 1
8 1-family...........................................
9 2-or-more-family.............................

1,147

1,442

655
492

829
613

10 Completed ............................................
11
1-family...........................................
12 2-or-more-family.............................

1,362

1,652

1,026
336

13 Mobile homes shipped.......................

2
3

14
15
16
17
18

Merchant builder activity in
1-family units:
Number sold.......................................
Number for sale, end of period1........
Price (thous. of dollars)2
Median:
Units sold....................................
Units for sale...............................
Average:
Units sold....................................

1,163
377

1,451
535

1,658

1,563

1,078
581

1,020
543

2,019

2,004

1,433
586

1,431
585

1,731

1,092
639
2,024

1,432
612

1,729

1,724

1,135
592

1,114
610

2,054

1,436
636

1,149
515

841
483

1,148
521

787
534
964
447

1,311

1,320

1,378
553

786
517

784
526

781
539

1,254
398

1,866
1,368
498

1,948

1,900

1,883

246

277

276

283

272

286

280

303

311

264

639
433

819
407

817
423

778
418

796
417

900
407

'803
412

'787
'414

748
415

663
415

44.2
41.6

48.9
48.2

55.9
n.a.

56.1
n.a.

57.3
n.a.

58.3
n.a.

58.8
n.a.

59.9
n.a.

60.2
n.a.

61.1
n.a.

48.1

54.4

62.7

63.0

64.4

65.7

'66.3

'67.1

67.9

70.0

3,002

3,572

3,905

4,080

3,950

4,290

4,350

4,160

3,710

3,620

38.1
42.2

42.9
47.9

48.7
55.1

50.3
57.5

50.2
57.7

50.1
57.3

50.7
57.4

50.9
58.1

52.0
59.8

51.9
59.5

1,355

1,303

1,363
584

1,370
530

791
545

1,414
468

802
553

821
556

1,314
500

EXISTING UNITS (1-family)
19 Number sold.......................................
Price of units sold (thous. of
dollars):2
20
Median............................................
21
Average...........................................

Value of new construction 4
(millions of dollars)
CONSTRUCTION
22 Total put in place...............................
24
25
26
27
28
29

Residential.......................................
Nonresidential, total......................
Buildings:
Industrial.................................
Commercial.............................
Other........................................
Public utilities and other............

30 Public ..................................................
31 Military............................................
32 Highway..........................................
33 Conservation and development. . .
34 Other3..............................................

148,778

172,552

'202,219

'208,434 '209,833 '211,984 '215,827

'218,529 '208,600

205,482

110,416

134,723

80,957
53,766

' 157,455
'93,088
'64,367

' 160,272
'94,811
'65,461

' 161,863
'94,682
'67,181

' 164,096
'95,162
'68,934

' 167,931
'97,594
'70,337

' 170,966
'98,793
'72,173

' 162,260
'92,188
'70,072

164,262

7,182
12,757
6,155
23,803

7,713
14,789
6,200
25,064

'10,762
'18,280
'6,659
'28,666

12,043
18,835
6,721
'27,862

12,634
18,926
6,686
'28,935

12,627
19,410
6,667
'30,230

12,529
20,294
6,877
'30,637

13,273
20,049
6,922
'31,929

'12,512
'19,272
'6,598
'31,690

12,983
18,782
6,328
32,036

38,312

37,828

'44, 762
1,462
8,627
3,697
23,503

'48,162
1,520
11,427
5,231
29,984

47,970

'47,888
'1,409
11,428
3,851
'31,200

'47,897
'1,415
10,956
4,593
30,933

'47,563
'1,442
11,176
4,357
30,588

'46,339
'1,621
n.a.
n.a.
n.a.

41,220

60,519
49,897

1,521
9,439
3,751
23,601

1,517
9,280
3,882
23,149

1 Not at annual rates.
2 Not seasonally adjusted.
3 Beginning Jan. 1977 Highway imputations are included in Other.
4 Value of new construction data in recent periods may not be strictly
comparable with data in prior periods due to changes by the Bureau of
the Census in its estimating techniques. For a description of these changes
see Construction Reports (C-30-76-5), issued by the Bureau in July 1976.




1,615
10,862
5,660
29,833

94,133
70,129

1,438
n.a.
n.a.
n.a.

N ote. Census Bureau estimates for all series except (a) mobile homes
which are private, domestic shipments as reported by the Manufactured
Housing Institute and seasonally adjusted by the Census Bureau, and
(b) sales and prices of existing units, which are published by the Na­
tional Association of Realtors. All back and current figures are avail­
able from originating agency. Permit authorizations are for 14,000
jurisdictions reporting to the Census Bureau.

2 .1 5

Prices

A 51

1979

Index
level
Feb.
1979
(1967
= 100)2

C O N S U M E R A N D P R O D U C E R P R IC E S
Percentage changes based on seasonally adjusted data, except as noted.

12 months to—
1978
Feb.

1979
Feb.

3 months (at annual rate) to—

1 month to

1978
Mar.

June

1978

Sept.

Dec.

Oct.

Nov.

Dec.

Jan.

Feb.

Consumer prices 3
1 All items........................................................

6.4

9.9

8.9

10.7

8.5

8.5

.8

.6

.6

.9

1.2

207.1

2 Commodities .................................................
3 Food........................................................
4 Commodities less food.............................
5
Durable.................................................

5 .4

10.0
13.0
8.8
9.8
10.2

8.5

10.5

7.3

9 .6

.8
.9
.7
.8
.5

.7
.6
.7
1.0
.5

.8
1.0
.8
.8
.6

1.1
1.4
.9
.9
1.1

1.2
1.6
1.0
1.0
1.5

228.2
183.7
183.6
204.0

.5

7.6
4.5
4.7
5.8

14.9
5.8
7.9
3.8

18.3
7.2
9.0
5.5

4.8
8.3
9.1
6.9

10.2
9.6
11.3
6.7

198.3

7.1
10.2

6.5
9.5

11.0
8.2
11.3

7.3
10.8

7.7
7.1

.6
.9

.7
.4

.6
.4

.3
.6

1.1
.4
1.1

223.3

Services less rent......................................

6.3
8.1

10.3

9
10
11
12

Other groupings:
All items less food...................................
All items less food and energy...............
Homeownership.......................................

6.1
6.2
9.2

9.3
9.1
13.5

7.6
6.3
11.4

8.9
10.4
13.2

9.3
9.7
14.6

8.5
7.7
10.9

.8
.8
1.4

.6
.7
.8

.6
.4
.4

.8
.5
.8

1.0
.9
1.8

201.8
198.8
245.6

7 Services.........................................................

7.8

9 .7

9.1

7.2

.9

.5

.4

171.0
232.9

Producer prices, formerly Wholesale prices
13 Finished goods.............................................

6.7

10.0

8.7

10.3

7.4

10.1

.8

.9

'1.3

*■1.0

1.0

207.4

14
15
16
17

Consumer..................................................
Foods....................................................
Excluding foods....................................
Capital equipment....................................

6.4
7.9
7.5
5.6

10.7
12.5
8.4
9.6

9.5
16.8
5.3
7.1

10.6
11.4
10.5
9.1

7.5
4.9
8.8
7.0

10.8
15.3
8.4
8.8

.8
1.6
.4
.6

r.6
r. 8

M.2

r.6

r.8

'l.i
r. 6

1.4
1.8
1.2
1.0

1.2
1.6
.9
.8

206.1
224.6
194.8
210.5

18 Materials......................................................
19 Intermediate1............................................
Crude:
20
Nonfood................................................
21
Food......................................................

5.9
6.8

11.6
8.9

11.0
8.1

9.9
7.2

7.5
6.9

13.0
10.8

1.5
1.1

.9
.9

.7
r .6

1.4
1.2

1.6
.9

236.6
228.9

5.4
3.8

19.0
21.0

10.7
25.1

14.9
26.6

16.9
2.8

19.6
21.0

1.7
3.7

rl . 7

1.2
r. 3

1.7
2.8

2.8
.2

321.0
243.6

1 Excludes intermediate materials for food manufacturing and manufactured animal feeds.
2 Not seasonally adjusted.




r .9

n. 2

3 Beginning Jan. 1978 figures for consumer prices are those for all urban
consumers.
Source. Bureau of Labor Statistics.

A52

D om estic N o n fin an c ia l Statistics □ A p r il 1979

2.16 GROSS NATIONAL PRODUCT AND INCOME
Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates.

1976

1977

1977

1978'

Account

1978
Q4

Q3

Ql

Q2

Q3

Q4'

Gross national product
1
By source

1,700.1

1,887.2

2,107.6

1,916.8

1,958.1

1,992.0

2,087.5

2,136.1

2,214.8

1 ,0 9 0 .2

1 ,206.5

1,340.1

1,214.5
ill A

1,255.2

187.2
496.9
571.1

1,2 7 6 .7

1,322.9

1,356.9

1,403.9

479.7
557.5

199.5
531.7
625.8

209.1
553.4
641.4

309.7

313.5

350.1

364.0

156.6
442.6
491.0

3
4
5

Durable goods..................................................
Nondurable goods............................................
Services..............................................................

7
8
9
10
11
12

Fixed investment...............................................
Structures...................................................
Producers’ durable equipment.................
Residential structures...................................
Nonfarm....................................................

57.3
107.3
68.2
65.8

13
14

Change in business inventories.......................
Nonfarm........................................................

15 Net exports o f goods and services.........................
16 Exports..............................................................
17 Imports..............................................................

163.2
155.7

243.0

18 Government purchases o f goods and services . . . .
19 Federal...............................................................
20 State and 1ocal..................................................
By major type of product
21 Final sales, total....................................................
22 Goods .................................................................
23
Durable..........................................................
24
Nondurable....................................................
25 Services..............................................................
26 Structures..........................................................
27 Change in business inventories...........................
28 Durable goods..................................................
29 Nondurable goods............................................
30

178.4
479.0
549.2

297.8

197.5
526.5
616.2

345.6

63.9
126.5
91.9
88.9

329.6
222.6
77.8
144.8
107.0
103.8

10.2
12.2

15.6
15.0

16.0
16.7

7 .4

- 1 1 .1

-1 2 .0

175.5
186.6

204.8
216.8

394.0

433.9

232.8
164.6

359.5

282.3

190.4

287.8

132.8
100.2
97.5

68.5
137.1
100.3
97.3

21.9
22.0

13.1
10.4

16.7
16.9

—7.0

-2 3 .2

-2 4 .1

65.4
128.1
94.3
91.2

180.8
187.8
399.5

172.1
195.2

1,689.9

1,871.6

2,091.6

1,894.9

760.3

844.7

918.4

376.8
541.7
962.5
226.7

10.2
5.3
4.9

15.6
8.4
7.2

1,271.0

1,332.7

181.7
205.8

412.5

152.2
260.3

341.3
491.3
862:8
191.8

345.4

325.3
220.1
76.6
143.5
105.3
102.1

146.8
252.7

832.6

306.0

205.6

153.8
280.2

304.6
455.7
778.0
161.9

322.7

300.5

197.8
519.3
605.8

200.3
61A

193.5

145.1
248.9

129.9
229.6

183.5
501.4
591.8

416.7

350.5

336.5
227.5

237.1

80.9
146.6
109.0
105.7

85.1
152.0
113.4
110.2

20.1
22.1

13.6
14.6

13.5
13.4

-5 .5

-1 0 .7

205.4
210.9
424.7

151.5
265.2

147.2
277.6

1,945.0

1,975.3

2,067.4

859.6

-7 .6

210.1
220.8

221.9
229.5

439.8

454.5

154.0
285.8

2,122.5
927.3

162.5
292.0
2,201.3

347.4
512.2
893.6
204.9

861.8

351.2
510.6
926.4
203.8

912.2

346.5
498.2
875.3
196.8

375.8
536.4
952.0
223.4

380.1
547.2
973.7
235.0

400.1
572.4
997.7
244.7

16.0
11.7
4.3

21.9
11.9
10.0

13.1
6.3
6.8

16.7
14.8
1.9

20.1
10.8
9.3

13.6
10.2
3.4

13.5
10.8
2.7

1,385.7

1,343.9

1,354.5

1,354.2

1,382.6

1,391.4

1,414.7

1,795.6

972.5

National income
31

1,359.2

1,515.3

1,703.8

1,537.6

1,576.9

1,603.1

1,688.1

1,728.4

32 Compensation of employees................................ 1,036.8
890.1
33
Wages and salaries ............................................
187.6
34
Government and government enterprises . .
Other..............................................................
35
702.5
146.7
36 Supplement to wages and salaries.....................
37
Employer contributions for social
69.7
insurance.......................................... ..
77.0
38
Other labor income......................................

1,153.4

1,165.8

1,090.2

1,317.1

993.6

1,050.8

1,287.8

200.8
782.9

1,199.7
1 ,021.2
208.1
813.1

1,241.0

983.6

1,301.4
1 ,101.0
216.1
884.8

1,113.4

1,149.4

169.8

200.5

172.2

178.4

190.2

197.6

203.6

210.4

79.4
90.4

94.5
105.9

79.9
92.2

82.4
96.1

90.2
100.0

93.6
104.0

95.7
107.9

98.6
111.8

88.6
70.2
18.4

99.8

113.2

97.2

107.3

105.0

123.0

80.8
16.5

110.1
86.1
24.0

114.5

87.8
25.3

39 Proprietors* income1..............................................
40 Business and professional1...............................
41
Farm1................................................................

79.5
20.3

201.7
791.9

82.3
25.1

211.4
839.3

83.1
21.9

213.9
876.3

216.8
896.6

1,359.8

89.6
25.0

222.3
927.1

92.6
30.4

42 Rental income of persons2...................................

22.5

22.5

23.4

22.4

22.7

22.8

22.2

24.3

24.4

43 Corporate profits1................................................
44 Profits before tax 3............................................
45 Inventory valuation adjustment.......................
46 Capital consumption adjustment.....................

127.0
155.9
-1 4 .5
-1 4 .4

144.2
173.9
- 1 4 .8
-1 4 .9

159.6
202.1
-2 4 .4
-1 8 .1

154.8
177.5
- 7 .7
-1 5 .0

148.2
178.3
-1 4 .8
-1 5 .3

132.6
172.1
-2 3 .5
-1 6 .1

163.4
205.5
- 2 4 .9
-1 7 .2

165.2
205.4
- 2 0 .9
-1 9 .3

177.0
225.3
-2 8 .4
-1 9 .9

84.3

95.4

106.3

97.3

99.0

101.7

104.6

107.4

111.4

47 Net interest.......................................................

1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustments.




3 For after-tax profits, dividends, and the like, see table 1.50.
Source. Survey o f Current Business (U.S. Dept, of Commerce).

A53

National Income Accounts
2 .1 7

P E R S O N A L IN C O M E A N D S A V IN G
Billions o f current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted.

1976

1977

Account

1977

1978r
Q3

1978
Q4

Ql

Q2

Q3

Q4r

Personal income and saving
1 Total personal income...........................................

1,380.9

1,529.0

1,708.0

1,543.7

1,593.0

1,628.9

1,682.4

1,731.7

1,789.0

2 Wage and salary disbursements.............................
3 Commodity-producing industries....................
4
Manufacturing...............................................
5 Distributive industries.......................................
6 Service industries..............................................
7 Government and government enterprises.......

890.1

307.5
237.5
216.4
178.6
187.6

983.6

1,100.9

993.6

1 ,021.2
357.1
277.3
247.5
208.5
208.1

1,050.8

1,090.2

1,113.2

1,149.4

396.4
302.0
271.6
228.5
216.7

411.3
314.4
280.4
235.4
222.3

8 Other labor income..............................................

77.0

9 Proprietors ’ income1..............................................

Business and professional1...............................
Farm1................................................................

88.6
70.2
18.4

79.5
20.3

12 Rental income of persons2...................................

22.5

22.5

10
11

343.7
266.3
239.1
200.1
200.8

390.2
299.9
268.9
225.8
216.1

348.3
269.3
241.2
202.3
201.7

365.9
286.9
257.0
216.5
211.4

90.4

105.9

92.2

96.1

100.0

104.0

107.9

111.8

99.8

113.2

97.2

107.3

87.8
25.3

80.8
16.5

83.1
21.9

110.1
86.1
24.0

114.5

82.3
25.1

105.0

123.0
92.6

23.4

22.4

22.7

22.8

22.2

24.3

24.4

387.0
296.1
266.4
222.8
213.9

89.6
25.0

30.4

13 Dividends..............................................................

37.9

43.7

49.3

44.1

46.3

47.0

48.1

50.1

51.9

14 Personal interest income.......................................

126.3

141.2

159.0

143.6

146.0

151.4

156.3

161.7

166.6

15 Transfer payments................................................
16 Old-age survivors, disability, and health
insurance benefits......................................

193.9

208.8

226.0

211.9

215.9

219.2

220.6

230.4

233.9

92.9

105.0

117.4

108.5

110.1

112.1

113.7

121.1

122.7

55.5

61.0

69.7

61.4

62.6

67.2

69.2

70.5

72.1

1,380.9

1,529.0

1,708.0

1,543.7

1,593.0

1,628.9

1,682.4

1,731.7

1,789.0

196.5

226.0

256.2

224.6

233.3

237.3

249.1

263.2

275.1
1,513.9

17

Less: Personal contributions for social
insurance....................................................

18 Equals: Personal income....................................
19

Less: Personal tax and nontax payments.. . .

20 Equals: Disposable personal income................

1,184.4

1,303.0

1,451.8

1,319.1

1,359.6

1,391.6

1,433.3

1,468.4

21

Less: Personal outlays.....................................

1,116.3

1,236.1

1,374.9

1,244.8

1,285.9

1,309.2

1,357.0

1,392.5

1,440.9

22 Equals: Personal saving.....................................

68.0

66.9

76.9

74.3

73.7

82.4

76.3

76.0

73.0

Memo items :
Per capita (1972 dollars):
Gross national product.....................................
Personal consumption expenditures................
Disposable personal income.............................
Saving rate (percent)...........................................

5,906
3,808
4,136
5.7

6,144
3,954
4,271
5.1

6,340
4,080
4,421
5.3

6,191
3,953
4,293
5.6

6,226
4,030
4,365
5.4

6,215
4,009
4,370
5.9

6,334
4,060
4,399
5.3

r6 ,360
r4,092
4,428
5.2

6,452
4,159
4,485
4.8

23
24
25
26

Gross saving
27 Gross private saving..............................................

270.7

290.8

320.2

310.7

304.3

305.4

319.9

325.7

329.9

28
29
30

Personal saving..................................................
Undistributed corporate profits1.....................
Corporate inventory valuation adjustment.. ..

68.0
24.8
-1 4 .5

66.9
28.7
-1 4 .8

76.9
26.3
- 2 4 .4

74.3
38.0
- 7 .7

73.7
28.0
- 1 4 .8

82.4
15.6
- 2 3 .5

76.3
30.3
- 2 4 .9

76.0
29.0
- 2 0 .9

73.0
30.5
- 2 8 .4

31
32
33

Capital consumption allowances:
Corporate......................................................
Noncorporate................................................
Waee accruals less disbursements...................

111.5
66.3

120.9
74.3

132.5
84.4

122.6
75.9

124.6
77.9

127.4
79.9

130.5
82.8

134.7
86.1

137.4
89.0

6.2

8.2
-2 0 .6
28.8

34 Government surplus, or deficit ( —), national
income and product accounts .........................
35 Federal..............................................................
36 State and local..................................................

- 5 3 .8
20.7

-1 .6

-2 9 .9
28.3

- 2 5 .2

-4 8 .1
29.6

- 5 6 .4
31.2

-5 8 .6
29.0

-5 2 .6
31.5

-2 3 .6
29.8

.6
- 2 2 .8
23.4

38 Investment.............................................................
39 Gross private domestic.....................................
40 Net foreign........................................................

241.7

276.9

309.7
-1 7 .1

279.5

286.4

345.6
-2 5 .2

292.6

326.6

297.8
-2 0 .9

320.4

326.6

243.0
- 1 .2

313.5
-3 4 .1

322.7
-3 6 .3

345.4
-1 8 .9

350.1
-2 3 .5

364.0
-2 2 .1

41 Statistical discrepancy..........................................

4.2

4.7

1.7

7.1

4.8

2.2

.5

.4

3.9

-3 3 .2

-1 8 .6

-2 9 .6

- 2 1 .1

37 Capital grants received by the United States,
net..................................................................

1 With inventory valuation and capital consumption adjustments.
2 With capital consumption adjustment.




S o u r c e . Survey o f Current Business (U.S. Dept, of Commerce).

342.0

A 54

In tern atio n a l Statistics □ A p r il 1979

3.10 U.S. INTERNATIONAL TRANSACTIONS

Summary

Millions of dollars; quarterly data are seasonally adjusted except as noted.1

Item credits or debits

1976

1977

1978

1977

1978

Q4
1 Merchandise exports...............................................................
2 Merchandise imports..............................................................
3 Merchandise trade balance2...............................................
4 Military transactions, net.......................................................
6 Other service transactions, net...............................................
7 Balance on goods and services3,4............................................
8 Remittances, pensions, and other transfers...........................
9 U.S. government grants (excluding military).......................
10 Balance on current account3....................................................
11 Not seasonally adjusted 3. ....................................................
12 Change in U.S. government assets, other than official
reserve assets, net (increase, —) .....................................
14
15
16
17

Gold.....................................................................................
Special Drawing Rights (SDRs)........................................
Reserve position in International Monetary Fund (IMF)..
Foreign currencies...............................................................

114,694 120,576
124,047 151,706
-9,3 5 3 -31,130

Q2

Ql

Q3

Q4

141,844
175,988
-34,144

29,637
39,009
-9 ,3 7 2

30,787
42,707
-11,920

35,256
43,125
-7 ,8 6 9

36,486
44,478
-7 ,9 9 2

39,315
45,678
-6 ,3 6 3

1,334
17,507
1,705

531
19,915
2,814

5
3,812
482

210
4,877
532

444
4,581
835

12
4,878
666

-1 3 6
5,580
781

9,361 -10,585

312
15,933
2,469

-10,885

-5 ,0 7 2

-6 ,3 0 2

-2 ,0 0 9

-2 ,4 3 6

-1 3 8

-1 ,9 3 2
-2 ,7 7 6

-2 ,0 4 8
-3,028

-473
—591

-5 0 4
-778

-536
-781

-4 9 6
-779

-513
-691

4,339 -15,292

-15,961

-6 ,1 3 6

-7 ,5 8 4

-5 ,2 4 5

-6 ,3 8 2

-3 ,3 2 6

-3 ,7 1 1

-2 ,8 0 3

- 6 ,3 2 6

-1 ,3 4 2

-838

-8 9 6

-1 ,1 7 6

-1 ,4 9 8

246

329

115

-1 ,8 7 8
-3,1 4 5

-4,213

-3 ,6 7 9

-4,657

- 2 ,5 3 0

-2 3 1

872

-4 4 9

-1 ,0 8 6
182

-7 8
-2 ,2 1 2
-2 4 0

-118
-121
-294
302

-6 5
1,249
4,231
-4,543

-6 0
-2 9
42
47

-1 6
324
-6 2

-1 0 4
437
-4

-4 3
195
-3 7

-6 5
1,412
3,275
-4 ,4 4 0

18 Change in U.S. private assets abroad (increase, —) 3............

-43,865

-30,740

-54,963

-13,862

-14,417

-5 ,3 2 0

-8 ,8 3 3

-26,394

19

Bank-reported claims..........................................................

-21,368

-11,427

-33,957

-8 ,7 5 0

-6 ,2 7 0

-503

-5 ,6 2 2

-21,562

20
21
22
23
24

Nonbank-reported claims.....................................................

- 2 ,0 3 0

-1 ,7 0 0

-2 ,2 5 6

- 1 ,1 8 4

—2,222

267

-3 6
62

-2 6 5

Long-term.........................................................................
Short-term........................................................................
U.S. purchase of foreign securities, net.............................
U.S. direct investments abroad, net3.................................

25 Change in foreign official assets in the United States
Cincrease, + ) .....................................................................
26
U.S. Treasury securities......................................................
27 Other U.S. government obligations..................................
28 Other U.S. government liabilities 5...................................
29 Other U.S. liabilities reported by U.S. banks...................
30 Other foreign official assets6 ..............................................

33
25
5
-2 ,2 8 9
-1,7 2 5
-2,0 3 5
-3 ,3 8 9
-8 ,8 5 2
-5 ,3 9 8
-11,614 -12,215 -15,361
18,073

37,124

9,333
573
4,993
969
2,205

30,294
2,308
1,644
773
2,105

31 Change in foreign private assets in the United States
(increase, + ) 3..................................................................

18,897

13,746

29,293

32

U.S. bank-reported liabilities..............................................

10,990

6,719

16,860

33
34
35
36

U.S. nonbank-reported liabilities .........................................

-5 0 7

257

1,676

37
38

Long-term.........................................................................
Short-term........................................................................
Foreign private purchases of U.S. Treasury securities,
net.................................................................................
Foreign purchases of other U.S. securities, net................
Foreign direct investments in the United States, net3.......

39 Allocation of SDRs............. ............................... .................
40 Discrepancy ..............................................................................
41
Owing to seasonal adjustments...............................
42 Statistical discrepancy in recorded data before seasonal
adjustment....................................................................
43
44
45
46

Memo items:
Changes in official assets:
U.S. official reserve assets (increase, —) .........................
Foreign official assets in the United States (increase, + ) ..
Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part
of line 25 above)..............................................................
Transfers under military grant programs (excluded from
lines 1, 4, and 9 above)...................................................

-958
451

-620
877

2,783
1,284
4,347

24,063
656
2,810
5,043
1,395

-5 7
-2 ,1 6 5
-949
-4 ,9 7 6

15,543

15,760

80
187
-1 .1 0 3
-3,981

-9 8
-467
-2 ,7 0 8

-5 2
-213
-8 7 0
-3 ,6 9 7

-5 ,6 8 5

-5 ,7 2 8
211
-312
-493
637

4,852

19,040

12,965
117
804
1,456
418

3,029
443
350
946
84

13,797
-115
1,968
3,134
256

4,522

2,336

6,090

10,637

10,230

3,143

-3 1 4

1,836

7,965

7,373

425

495

248

986

12,900
973
390
909
371

-5 3

-4 9
1,725

-2 4 2
667

38
457

-6 8
316

106
880

-125
72

563
2,869
3,338

2,248
2,899
5,611

-299
803
450

881
462
812

847
1,308
1,852

-1 ,0 5 3
533
2,206

1,573
596
741

9,300

-9 2 7

11,449

771

4,555

9,087

108

-2 ,4 5 5

1,431

9,300

-927

11,449

-674

3,638

8,979

893

-2,061

—2,530
13,080

-231
35,480

872
31,157

15,153

246
14,956

329
-5 ,3 7 3

115
4,502

182
17,072

9,581

6,733

-570

1,024

1,963

-2 ,8 3 8

-1 ,5 9 2

1,897

373

194

274

71

75

57

69

73

1 Seasonal factors are no longer calculated for lines 13 through 46.
2 Data are on an international accounts (IA) basis. Differs from the
census basis primarily because the IA basis includes imports into the
U.S. Virgin Islands, and it excludes military exports, which are part of
line 4.
3 Includes reinvested earnings of incorporated affiliates.
4 Differs from the definition of “net exports of goods and services” in
the national income and product (GNP) account. The GNP definition




33,967

-279
-905
-731
-3 ,1 9 7

1,445

917

-1 ,5 6 2

-6 3 0

excludes certain military sales to Israel from exports and excludes U.S.
government interest payments from imports.
5 Primarily associated with military sales contracts and other transac­
tions arranged with or through foreign official agencies.
6 Consists of investments in U.S. corporate stocks and in debt securi­
ties of private corporations and state and local governments.
N ote. Data are from Bureau of Economic Analysis, Survey o f Current
Business (U.S. Department o f Commerce).

Trade and Reserve Assets
3.11

A55

U .S . F O R E I G N T R A D E
Millions o f dollars; monthly data are seasonally adjusted.

Item

1976

1977

1979

1978

1978
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

12,294

13,274

12,901

13,451

13,282

13,132

13,507

1 EXPORTS of domestic and foreign
merchandise excluding grant-aid
shipments........................................

115,156

2 GENERAL IMPORTS including
merchandise for immediate con­
sumption plus entries into bonded
warehouses......................................

121,009

147,685

172,026

14,133

14,820

14,852

14,825

15,032

16,231

14,806

3 Trade balance......................................

-5 ,8 5 3

-26,535

-28,451

-1 ,8 3 9

-1 ,5 4 5

-1 ,9 5 0

-1 ,3 7 4

-1 ,7 4 9

-3 ,0 9 9

-1 ,2 9 9

121,150

143,575

Note. Bureau of Census data reported on a free-alongside-ship
(f.a.s.) value basis. Effective January 1978, major changes were made in
coverage, reporting, and compiling procedures. The internationalaccounts-basis data adjust the Census basis data for reasons of coverage
and timing. On the export side, the largest adjustments are: (a) the addition
of exports to Canada not covered in Census statistics, and (b) the exclusion
of military exports (which are combined with other military transactions

and are reported separately in the “service account”). On the import
side, the largest single adjustment is the addition of imports into the
Virgin Islands (largely oil for a refinery on St. Croix), which are not
included in Census statistics.
Source. FT 900 “Summary of U.S. Export and Import Merchandise
Trade” (U.S. Department of Commerce, Bureau of the Census).

3.12 U.S. RESERVE ASSETS
Millions of dollars, end of period
1979

1978
Type

1976

1977

1978

1 Total....................................................

18,747

19,312

11,598
2,395
4,434

2 Gold stock, including Exchange
3 Special Drawing Rights2...................
4 Reserve position in International
5 Convertible foreign currencies4.........

320

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.p

18,650

18,850

18,935

17,967

18,650

20,468

21,641

3 21,658

11,719

11,671

11,668

11,655

11,642

11,671

11,592

11,544

11,479

2,629

4,374

2,942

3,097

1,522

1,558

2,661

2,672

3 2,667

4,946

1,047

4,214

4,147

1,099

1,047

1,017

1,120

31,121

18

1,558

26

36

3,704

4,374

5,198

6,305

6,391

1 Gold held under earmark at Federal Reserve Banks for foreign and
international accounts is not included in the gold stock of the United
States; see table 3.24.
2 Includes allocations by the International Monetary Fund of SDRs as
follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710
million on Jan. 1, 1972; and $1,103 million on Jan. 1, 1979; plus net
transactions in SDRs.




3 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 also are valued on this basis beginning July 1974.
4 Beginning November 1978, valued at current market exchange rates.

A 56

In te rn a tio n a l Statistics □ A p r il 1979

3.13 FOREIGN BRANCHES OF U.S. BANKS

Balance Sheet Data

Millions of dollars, end of period

Asset account

1975

1976

19782

1977
July

Aug.

Sept.

1979
Oct.

N ov.r

Dec.

Jan. p

All foreign countries
1 Total, all currencies............................

176,493

219,420

258,897

269,542

274,929

287,369

292,305

295,482

305,599

294,586

6,743

7,889

11,623

9,254

10,024

14,976

12,169

13,385

16,702

15,205

2
3
4

Claims on United S tates .................

Parent bank.................................
Other............................................

3,665
3,078

4,323
3,566

5
6
7
8
9

Claims on foreigners .......................

163,391

204,486

10

Other assets.....................................

Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................

34,508
69,206
5,792
53,886

45,955
83,765
10,613
64,153

7,806
3,817

238,848

55,772
91,883
14,634
76,560

5,096
4,158

250,700

55,236
94,659
23,288
77,517

58,746
92,811
23,354
79,871

262,063

63,493
95,222
23,896
79,452

7,879
4,290

269,121

67,748
98,104
23,936
79,333

9,007
4,378

271,015

68,310
101,043
22,993
78,669

12,153
4,549

277,579

70,210
102,783
23,679
80,907

10,462
4,743
267,724

66,575
97,729
23,734
79,686

6,359

7,045

8,425

9,588

10,123

10,330

11,015

11,082

11,318

11,657

167,695

193,764

198,205

200,779

212,063

210,939

218,149

224,131

214,106

8,473

9,219

14,168

11,328

12,489

15,744

14,371

203,327

194,352

Claims on United States .................

6,408

3,628
2,780

4,264
3,332

7,595

11,049

7,692
3,357

4,906
3,567

15
16
17
18
19

Claims on foreigners .......................

123,496

156,896

178,896

185,425

20

Other assets.....................................

Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners...................

254,782

10,693
4,283

132,901
12
13
14

Parent bank.................................
Other............................................

5,818
4,206

28,478
55,319
4,864
34,835
2,997

37,909
66,331
9,022
43,634

44,256
70,786
12,632
51,222

43,447
71,592
20,291
5a, 095

3,204

3,820

4,307

5,628
3,591

187,041

10,535
3,633

7,688
3,640

193,457

194,882

46,326
69,560
20,255
50,900

50,880
71,892
20,505
50,180

4,519

4,438

52,887
72,644
20,301
49,050

8,838
3,651

200,679

54,632
76,473
19,618
49,956

11,967
3,777

55,282
78,367
19,868
49,810

10,269
4,102

51,723
73,465
20,103
49,061

A,129

4,981

5,060

5,383

United Kingdom
21 Total, all currencies............................

74,883

81,466

90,933

92,989

93,333

99,084

101,887

102,032

106,593

100,847

2,392

3,354

4,341

2,615

2,624

2,940

3,119

3,706
2,119

5,370

3,982

98,137

93,733

22
23
24

Claims on United States .................

25
26
27
28
29

Claims on foreigners ......................

Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................

17,557
35,904
881
15,990

19,753
38,089
1,274
16,743

22,017
39,899
2,206
19,895

30

Other assets.....................................

2,159

2,253

2,576

2,895

2,937

2,780

2,994

3,106

3,086

3,132

64,449

70,008

70,209

71,761

75,860

70,547

2,335

2,598

2,877

3,475

5,113

3,760

66,242

66,132

67,031

69,416

65,393

1,200

1,255

1,331

1,394

Parent bank.................................
Other............................................

31 Total payable in U.S. dollars.............
32
33
34

Parent bank.................................
Other............................................

1,449
943

70,331

2,376
978
75,859

3,518
823

84,016

1,515
1,100
87,479

20,438
42,462
4,637
19,942

57,361

61,587

66,635

65,452

2,273

3,275

4,100

2,321

3,431
669

1,386
935

1,445
828

2,374
902

35
36
37
38
39

Claims on foreigners .......................

54,121

17,249
28,983
846
10,410

61,408

61,938

15,645
28,224
648
9,604

18,947
28,530
1,669
12,263

17,438
29,455
3,660
11,385

40

Other assets.....................................

967

824

1,126

1,193

Other branches of parent bank,.
Banks...........................................
Public borrowers1.......................
Nonbank foreigners....................

57,488

1,595
1,029

87,772

21,661
40,350
4,583
21,178

1,481
854

60,910

2,014
926

93,364

24,691
42,677
4,549
21,447

1,895
703

18,305
27,268
3,544
11,793

20,934
29,859
3,471
11,978

1,204

1,168

2,230
889

95,774

r26,516
*■43,926
4,692
20,640

2,187
690

21,377
29,680
3,595
11,480

927

95,220

25,802
44,353
4,526
20,539

2,121
748

21,197
30,565
3,467
11,802

4,448
922
27,830
45,013
4,522
20,772

4,386
727

22,838
31,482
3,317
11,779

2,952
1,030

25,925
42,543
4,560
20,705

2,900
860

21,185
29,115
3,350
11,743

Bahamas and Caymans
41

45,203

66,774

79,052

82,145

85,654

88,755

86,291

89,559

90,907

87,639

3,229

3,508

5,782

5,132

5,620

10,053

7,460

8,997

1,477
1,752

1,141
2,367

3,051
2,731

2,381
2,751

2,751
2,869

7,090
2,963

7,247

4,255
2,992

4,398
3,062

5,771
3,226

9,598

41,040

62,048

71,671

74,988

77,949

76,651

76,868

79,890

79,586

42
43
44

Claims on United States .................

45
46
47
48
49

Claims on foreigners ........................

50

Other assets.....................................

933

1,217

1,599

2,025

2,085

2,051

2,176

2,209

2,324

2,354

51 Total payable in U.S. dollars.............

41,887

62,705

73,987

76,494

79,701

83,007

80,223

83,570

84,608

81,423

Parent bank.................................
Other............................................
Other branches of parent bank..
Banks...........................................
Public borrowers1.......................
Nonbank foreigners...............

For notes see opposite page.




5,411
16,298
3,576
15,756

8,144
25,354
7,105
21,445

11,120
27,939
9,109
23,503

10,292
29,302
12,599
22,795

12,134
29,749
12,461
23,605

12,348
29,472
12,362
22,469

12,618
30,317
12,094
21,839

13,433
33,060
11,535
21,862

12,776
33,653
11,520
21,637

6,300
3,298
75,687

11,385
31,644
11,395
21,263

Overseas Branches
3 .1 3

A 57

C o n tin u e d

Liability account

1975

1976

1978 2

1977
July

Aug.

Sept.

1979
Oct.

Nov.'

Dec.

Jan.*

All foreign countries
176,493

219,420

258,897

269,542

274,929

287,369

292,305

295,482

305,599

294,586

20,221
Parent bank.................................
12,165
Other banks in United States. . . 1> 0Q,V
fK7
ji
Nonbanks....................................

32,719

44,154

51,583

24,542 *•27,346
1O All ( 8,608
\ '15,629

52,441

'28,676
7,659
'16,106

49,325

51,506

57,076

58,255

52,376

206,579

209,810

213,974

228,748

53,788
88,561
31,640
35,821

56,955
89,234
31,461
36,324

237,167

231,958

52 Total, all currencies............................
53
54
55
56

To United S tates .............................

57
58
59
60
61

To foreigners ...................................

62

Other liabilities...............................

6,456

6,747

8,163

8,149

8,514

9,311

9,647

9,658

10,177

10,252

63 Total payable in U.S. dollars.............

135,907

173,071

198,572

202,407

204,938

215,496

215,518

222,738

230,000

220,024

Other branches of parent bank..
Banks...........................................
Official institutions.....................
Nonbank foreigners....................

149,815

34,111
72,259
22,773
20,672

19,773
10 QAfk
1Z,740

179,954

44,370
83,880
25,829
25,877

64
65
66
67

To United States .............................

19,503

31,932

68
69
70
71
72

To foreigners ...................................

112,879

73

Other liabilities...............................

3,526

Parent bank.................................
11,939
Other banks in United States. . . ) n e r a
Nonbanks.................................... J 7,564

Other branches of parent bank..
Banks...........................................
Official institutions.....................
Nonbank foreigners....................

28,217
51,583
19,982
13,097

53,244
94,140
28,110
31,085

24,590
10,064
14,671

'26,842
8,362
'16,302

228,733

231,152

61,599
97,629
33,086
36,419

'65,010
95,956
32,246
'37,940

31,283
9,084
16,709

65,903
93,749
30,922
38,174

29,841
12,538
15,876
68,064
97,918
30,650
40,535

24,028
8,253
20,095
65,335
92,752
31,078
42,793

42,881

49,668

50,325

'27,784
7,286
'15,255

47,171

23,640
9,724
13,807

49,273

'25,907
8,008
'15,358

55,125

56,122

50,348

24,213 '26,575
8,286
18,669 {( '14,807

137,612

151,363

148,630

163,626

161,542

42,852
56,405
26,717
22,656

150,478

49,978
63,271
27,367
23,010

52,052
58,912
26,341
24,237

162,644

168,626

164,097

43,268
64,872
23,972
19,251

3,527

4,328

4,109

4,135

4,699

4,703

4,969

5,252

5,579

19,559
10
171
IZ,5/5

37,098
60,619
22,878
17,017

45,620
55,285
26,184
23,389

30,454
8,813
15,858

53,409
58,654
25,377
25,204

28,816
12,284
15,022

53,950
63,215
25,118
26,343

23,089
7,992
19,267

51,374
58,447
25,506
28,770

United Kingdom
74,883

81,466

90,933

92,989

93,333

99,084

101,887

102,032

106,593

100,847

75
76
77
78

To United S ta tes ...........................

5,646

5,997

7,753

8,011

6,978

8,033

9,053

10,235

8,134

1,959
1,451
O, 5V)Z 1i 2,987
3,065

1,905
2,290
2,783

1,872
3,150
3,011

8,347

79
80
81
82
83

To foreigners .................................

67,240

73,228

81,847

82,991

87,678

7,092
36,259
17,273
12,605

80,736

6,494
32,964
16,553
11,229

10,098
34,859
20,666
16,224

11,708
35,293
19,863
16,127

84

Other liabilities.............................

1,997

2,241

2,445

3,131

3,364

3,373

7,985

2,122
Parent bank...............................
Other banks in United States..
Nonbanks.................................. > 3,523
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................

1,198
4,798

9,376
37,893
18,318
15,149

12,006
37,677
21,493
16,502

2,176
2,949
3,222

2,367
3,234
3,452

89,979

89,347

12,928
40,692
20,181
18,896

92,697

88,983

3,561

3,632

3,661

3,730

71,158

72,812

77,030

72,089

9,833

7,751

2,618
4,307
2,908

1,539
2,618
3,594

65,711

62,651

57,820

63,174

67,573

65,671

64,918

86
87
88
89

To United S tates ...........................

5,415

5,849

7,480

7,652

6,606

7,650

1,852
2,209
2,545

1,805
3,092
2,753

2,116
2,902
2,967

8,666
2,321
3,178
3,167

90
91
92
93
94

To foreigners .................................

51,447

56,372

58,977

56,636

57,015

61,802

62,631

7,696
20,659
17,265
11,016

9,163
20,601
16,113
11,138

61,231

7,505
25,608
15,482
10,382

95

Other liabilities.............................

959

953

1,116

1,383

1,297

1,346

1,371

Parent bank...............................
2,083
Other banks in United States..
Nonbanks.................................. | 3,332
Other branches of parent bank.
Banks.........................................
Official institutions...................
Nonbank foreigners..................

5,442
23,330
14,498
8,176

1,182
4,667

5,874
25,527
15,423
9,547

1,416
6,064 I(

1,926
2,904
2,822

9,317
22,936
17,659
11,319

1,586
2,710
3,838

13,153
38,167
20,182
17,845

'12,175
39,277
21,193
'17,334

70,227

85 Total payable in U.S. dollars...........

2,669
4,395
3,171

9,301
23,260
17,106
12,135

10,302
23,044
16,317
12,968
1,515

9,764
26,062
16,309
13,576
1,486

12,853
36,629
19,674
19,827

10,012
22,107
15,809
14,723
1,687

Bahamas and Caymans
96 Total, all currencies..........................

45,203

66,774

79,052

82,145

85,654

88,755

86,291

89,559

90,907

87,639

11,147

22,721

32,176

37,041

39,532

34,378

38,826

20,956 '21,379
4,587
11,220 i( '11,075

'22,940
4,509
'12,083

'19,402
4,415
'11,859

40,603

36,921

18,410
5,511
10,457

35,676

45,292

43,649

44,597

52,574

48,955

47,274

97
98
99
100

To United States ...........................

101
102
103
104
105

To foreigners .................................
Other branches of parent bank...
Banks.........................................
Official institutions...................
Nonbank foreigners..................

106

Other liabilities.............................

1,106

1,154

1,584

1,455

1,525

1,803

1,660

1,682

1,842

1,816

107 Total payable in U.S. dollars...........

42,197

63,417

74,463

78,131

81,314

84,317

81,324

84,877

86,204

82,903

Parent bank...............................
7,628
Other banks in United States..
Nonbanks.................................. } 3,520
32,949

10,569
16,825
3,308
2,248

16,161
6,560
42,899

13,801
21,760
3,573
3,765

12,816

2 4 ,111

3,000
4,759

11,165
21,951
4,227
6,306

11,436
21,884
4,604
6,673

14,762
27,372
4,477
5,963

15,635
22,471
4,449
6,400

23,503
4,852
12,248

14,715
21,922
4,354
6,283

20,804
6,270
11,752

50,239

16,115
23,004
4,208
6,912

17,021
4,323
15,577
48,902

14,240
22,214
4,611
7,837

2 In May 1978 the exemption level for branches required to report
1 In May 1978 a broader category of claims on foreign public borrowers,
was increased, which reduced the number of reporting branches.
including corporations that are majority owned by foreign governments,
replaced the previous, more narrowly defined claims on foreign official
institutions.




A58

In te rn a tio n a l Statistics □ A p r il 1979

3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS
Millions of dollars, end of period

Item

1975

1976

1978

1977
Aug.

Sept.

Oct.

1979
Nov.

Dec.

Jan.p

Feb.?

A. By type
1 Total i .....................................................................
2 Liabilities reported by banks in the United
States2.............................................................
3 U.S. Treasury bills and certificates3.....................
U.S. Treasury bonds and notes:
4 Marketable.........................................................
5 Nonmarketable4................................................
6 U.S. securities other than U.S. Treasury
securities5................................................ .......

82,572

95,634 131,097 146,168 145,293 152,463 156,261 162,303 162,605 159,933

16,262
34,199

17,231
37,725

18,003
47,820

20,120
56,299

19,822
55,014

22,300
57,967

21,695
62,635

23,086
67,650

22,588
68,415

23,167
65,713

6,671
19,976

11,788
20,648

32,164
20,443

34,873
20,375

35,577
20,304

36,153
21,426

36,222
20,993

35,877
20,970

35,987
20,952

35,470
20,912

5,464

8,242

12,667

14,501

14,576

14,617

14,716

14,720

14,663

14,671

B. By area
7 Total.......................................................................
8
9
10
11
12
13

Western Europe1...................................................
Canada...................................................................
Latin America and Caribbean..............................
Asia.........................................................................
Africa......................................................................
Other countries6....................................................

82,572

95,634 131,097 146,168 145,293 152,463 156,261 162,303 162,605 159,933

45,701
3,132
4,461
24,411
2,983
1,884

45,882
3,406
4,926
37,767
1,893
1,760

1 Includes the Bank for International Settlements.
2 Principally demand deposits, time deposits, bankers acceptances,
commercial paper, negotiable time certificates of deposit, and borrowings
under repurchase agreements.
3 Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.
4 Excludes notes issued to foreign official nonreserve agencies. Includes
bonds and notes payable in foreign currencies.




70,748
2,334
4,649
50,693
1,742
931

79,724
2,071
4,621
56,923
2,036
793

80,268
1,497
3,899
56,883
2,006
740

85,294
2,619
4,611
57,016
2,184
739

88,389
2,446
4,495
57,835
2,301
795

92,946
2,486
5,029
58,656
2,443
743

94,371
2,150
4,297
58,963
2,299
525

92,727
1,911
4,367
57,766
2,371
791

5 Debt securities of U.S. government corporations and federally
sponsored agencies, and U.S. corporate stocks and bonds.
6 Includes countries in Oceania and Eastern Europe.
N ote. Based on Treasury Department data and on data reported to
the Treasury Department by banks (including Federal Reserve Banks)
and securities dealers in the United States.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.

Bank-reported Data
3 .1 5

A59

L I A B I L I T I E S T O F O R E I G N E R S R e p o r te d b y B a n k s in th e U n it e d S ta te s
P a y a b le in U .S . d o lla r s
Millions o f dollars, end o f period

Item

1975

1976

1979

1978

1977
Aug.

Sept.

Oct.

Nov.

Dec.

Jan.P

Feb.?

A. By holder and type of liability
1 All foreigners..........................................................

95,590 110,657 126,168 140,535 144,116 150,584 158,421 166,267 163,906 163,431

2 Banks’ own liabilities............................................
3 Demand deposits...............................................
4 Time deposits1...................................................
5 Other 2.................................................................
6 Own foreign offices 3..........................................

13,564
10,267

16,803
11,347

11,521

63,931
16,104
12,634
7,234
27,960

68,593
17,204
12,154
6,697
32,538

71,102
17,557
12,279
9,756
31,511

75,166
18,264
12,514
8,645
35,744

77,711
19,199
12,298
9,527
36,687

74,118
17,744
12,166
8,952
35,256

76,155
17,201
12,026
9,197
37,731

37,414

40,744

48,906

76,604
57,264

75,523
56,665

79,482
59,077

83,255
63,434

88,556
68,434

89,788
69,186

87,275
66,663

17,198
2,142

16,492
2,366

17,619
2,786

17,424
2,397

17,581
2,541

18,184
2,418

18,303
2,310

3,274

2,823

3,406

2,929

2,225

2,617

2,312

2,095

767
144
99
523

336
133
116
87

417
153
102
161

916
330
94
492

762
333
88
340

506
272
102
131

7 Banks’ custody liabilities4....................................
8 U.S. Treasury bills and certificates 5............... .
9 Other negotiable and readily transferable
instruments6...............................................
10 Other...................................................................
11 Nonmonetary international and regional
organizations7................................................
12 Banks’ own liabilities..................... .....................
13 Demand deposits..............................................
14 Time deposits1..................................................
15 Other2...............................................................
16 Banks’ custody liabilities4.....................................
17 U.S. Treasury bills and certificates.................
18 Other negotiable and readily transferable
instruments6..............................................
19 Other...................................................................
20 Official institutions8.

21
22

Banks’ own liabilities.
Demand deposits...
Time deposits1.......
Other2.....................

25
26
27

Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates5.............
Other negotiable and readily transferable
instruments6............................................
Other...............................................................

23
24

28

29 Banks9.
30
31
32
33
34
35
36
37
38
39

Banks’ own liabilities............
Unaffiliated foreign banks.
Demand deposits.............
Time deposits1.................
Other2..............................

5,714

139
148

290
205

231
139

808
142
97
569

2,554

2,701

706

2,014
368

2,639
1,036

2,593
403

1,809
183

1,701
201

1,550
183

1,589
193

1,645
1

1,603
1

2,189
1

1,625
1

1,499
1

1,362
5

1,393
3

65,822

76,419

74,836

80,267

84,329

90,737

91,003

88,880

9,455
3,307
2,563
3,585

11,474
3,046
2,399
6,030

10,820
3,414
2,345
5,060

11,732
3,389
2.334
6,008

10,500
2,702
2,288
5,510

11,071
2,759
2,169
6,143

50,461

54,956

2,644
3,423

3,394
2,321

3,528
1,797

9,085
2,643
2,595
3,848

34,199

37,725

47,820

67,334
56,299

65,381
55,014

68,793
57,967

73,510
62,635

79,005
67,650

80,503
68,415

77,809
65,713

10,831
205

10,122
245

10,616
210

10,768
107

11,185
170

11,897
191

11,905
191

29,330

7,534
1,873

37,174

9,104
2,297

42,335

45,532

50,515

51,379

55,273

56,861

54,563

55,805

10,933
2,040

41,028
13,068
9,229
1,390
2,449

45,744
13,206
9,713
1,269
2,223

46,425
14,914
10,156
1,552
3,206

50,440
14,696
10,068
1,735
2,893

52,035
15,349
11,239
1,489
2,621

49,812
14,556
10,379
1,495
2,683

51,047
13,316
9,426
1,336
2,554

27,960

32,538

31,511

35,744

36,687

35,256

37,731

4,504
296

4,771
307

4,955
381

4,834
371

4,826
300

4,751
302

4,757
399

2,382
1,827

2,536
1,928

2,447
2,126

2,561
1,902

2,417
2,109

2,422
2,027

2,384
1,973

14,736

15,761

15,359

16,008

16,593

16,052

16,028

16,652

4,304
7,546

13,009
4,090
8,552
368

12,627
4,039
8,222
365

12,867
4,222
8,213
432

13,490
4,628
8,331
531

13,028
4,242
8,380
406

13,04-5
4,330
8,295
420

13,531
4,744
8,419
368

2,752
301

2,732
308

3,141
326

3,103
245

3,024
282

2,983
285

3,120
357

2,341
110

2,231
193

2,367
448

2,471
387

2,480
262

2,503
195

2,620
143

10,181

10,043

10,977

10,803

10,926

11,080

10,989

Own foreign offices3.
Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates..............
Other negotiable and readily transferable
instruments6............................................
Other...............................................................

40 Other foreigners.
41
42
43
44

Banks’ own liabilities.
Demand deposits...
Time deposits1.......
Other2.....................

45
46
47

Banks’ custody liabilities4.................................
U.S. Treasury bills and certificates...............
Other negotiable and readily transferable
instruments6............................................
Other...............................................................

48

5,699

335

10,100

119

12,814

3,248
4,823

4,015
6,524

325

198

49 Memo: Negotiable time certificates of deposit
held in custody for foreigners..................... .
1 Excludes negotiable time certificates of deposit, which are included
in “Other negotiable and readily transferable instruments.”
2 Includes borrowings under repurchase agreements.
3 U.S. banks: includes amounts due to own foreign branches and
foreign subsidiaries consolidated in “Consolidated Report of Condition”
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due to head
office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank.
4 Financial claims on residents of the United States, other than long­
term securities, held by or through reporting banks.
5 Includes nonmarketable certificates of indebtedness (including those
payable in foreign currencies through 1974) and Treasury bills issued to
official institutions of foreign countries.




141

6 Principally bankers acceptances, commercial paper, and negotiable
time certificates of deposit.
7 Principally the International Bank for Reconstruction and Develop­
ment, and the Inter-American and Asian Development Banks.
8 Foreign central banks and foreign central governments and the
Bank for International Settlements.
9 Excludes central banks, which are included in “Official institutions.”
N ote. Data for time deposits prior to April 1978 represent short-term
only.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.

A 60

In te rn a tio n a l Statistics □ A p r il 1979

3.15 Continued
Item

1975

1976

1978

1977
Aug.

Sept.

Oct.

1979
Nov.

Dec.

Jan.P

Feb.?

B. By area and country
1

95,590 110,657 126,168 140,535 144,116 150,584 158,421 166,267 163,906 163,431

2 Foreign countries....................................................
3 Europe.................................. ..................................
4 Austria................................................................
5 Belgium-Luxembourg........................................
6 Denmark.............................................................
7 Finland................................................................
8 France.................................................................
9 Germany.............................................................
10 Greece.................................................................
11 Italy.....................................................................
12 Netherlands........................................................
13 Norway...............................................................
14 Portugal..............................................................
15 Spain...................................................................
16 Sweden................................................................
17 Switzerland...................................................
18 Turkey................................................................
19 United Kingdom.......................................... .....
20 Yugoslavia..........................................................
21
Other Western Europe1.................................
22
U.S.S.R...............................................................
23 Other Eastern Europe2................................ .

89,891 104,943 122,893 137,712 140,710 147,655 156,196 163,650 161,594 161,336
44,072

759
2,893
329
391
7,726
4,543
284
1,059
3,407
994
193
423
2,277
8,476
118
6,867
126
2,970
40
197

47,076

346
2,187
356
416
4,876
6,241
403
3,182
3,003
782
239
559
1,692
9,460
166
10,018
189
2,673
51
236

60,295

318
2,531

no

323
5,269
7,239
603
6,857
2,869
944
273
619
2,712
12,343
130
14,125
232
1,804
98
236

67,340

424
2,174
1,593
416
7,989
10,766
826
8,055
3,240
1,516
324
752
3,355
11,987
137
10,956
149
2,427
46
210

69,157

431
2,368
1,673
415
8,060
11,206
865
7,394
2,756
1,208
521
765
3,341
12,997
226
11,807
167
2,631
65
262

73,408

473
2,464
1,734
424
8,421
13,345
887
7,346
2,523
1,210
386
702
3,187
14,314
164
12,438
158
2,887
82
262

78,418

514
2,471
1,827
388
8,817
15,652
907
7,761
2,518
1,102
379
885
3,216
15,810
163
12,826
190
2,719
73
198

84.861

506
2,546
1 ,946
346
8,631
17,286
826
7,674
2,402
1 ,271
330
778
3,131
18,820
157
14,214
254
3,334
82
325

83,949

81,615

555
2,481
2,036
379
8,377
15,800
653
8,723
2,536
1,411
255
759
2,955
20,051
141
13,080
174
3,283
150
150

498
2,177
2,073
357
8,153
13,867
761
8,056
2,786
1,445
248
704
2,656
19,975
141
13,631
184
3,667
62
172

24 Canada ....................................................................

2,919

4,659

4,607

5,890

5,101

7,418

8,001

6,963

6,575

7,036

25 Latin America and Caribbean .........................
26
Argentina............................................................
27
Bahamas..............................................................
28 Bermuda.............................................................
29 Brazil...................................................................
30 British West Indies......................................
31 Chile...................................................................
32 Colombia.................................................... .......
33 Cuba...................................................................
34 Ecuador..............................................................
35 Guatemala3........................................................
36 Jamaica3.............................................. ..............
37 Mexico...................................... ........................
38 Netherlands Antilles4........................................
39 Panama...............................................................
40 Peru.....................................................................
41
Uruguay..............................................................
42 Venezuela............................................................
43 Other Latin America and Caribbean...............

15,028

19,132

23,670

27,261

29,216

28,470

31,111

31,470

30,863

32,283

44
45
46
47
48
49
50
51
52
53
54
55
56

36,394

36,654

36,467

China (Mainland)..............................................
China (Taiwan)..................................................
Hong Kong........................................................
India...................................................................
Indonesia............................................................
Israel...................................................................
Japan........................................................... .......
Korea.......................................................... .......
Philippines..........................................................
Thailand..............................................................
Middle East oil-exporting countries5...............
Other Asia..........................................................

57 A frica ......................................................................
58 Egypt...................................................................
59 Morocco.............................................................
60 South Africa.......................................................
61 Zaire...................................................................
62 Oil-exporting countries6....................................
63 Other Africa.......................................................

218
1,438
1,877
337
1,021
6
320

1,416
3,596
321
1,396
3,998
360
1,221
6
330

2,070
129
1,115
243
172
3,309
1,393

2,870
158
1,167
257
245
3,118
1,797

2,876
196
2,331
287
243
2,929
2,167

1,453
4,601
372
1,382
5,474
346
1,486
10
347
419
59
3,171
288
2,628
311
185
3,210
1,517

22,384

29,766

30,488

33,463

1,146
1,874
184
1,219
1,311
319
417
6
120

123
1,025
605
115
369
387
10,207
390
700
252
7,355
856

1,534

2 ,no

48
990
894
638
340
392
14,363
438
628
277
9,360
1,398

3,369

2,298

2,119

342
68
166
62
2,240
491

333
87
141
36
1,116
585

53
1,013
1,094
961
410
559
14,616
602
687
264
8,979
1,250

44
1,262
1,211
762
309
440
19,755
736
566
296
6,719
1,364

2,535

2,578

404
66
174
39
1,155
698

463
67
160
52
1,198
638

1,393
7,251
409
1,275
5,380
351
1,431
7
405
347
78
3,112
317
2,741
321
197
2,562
1,639

33,501

46
1,280
1,250
833
348
432
19,933
776
623
290
6,350
1,341

1,650
4,880
387
1,441
5,919
333
1,483
7
369
368
57
3,101
352
2,396
323
210
3,696
1,496

34,630

49
1,319
1,368
899
575
453
19,937
790
594
352
6,911
1,384

1,504
6,309
425
1,234
6,692
341
1,612
7
348
357
43
3,413
368
2,808
337
211
3,550
1,553

34,843

57
1,247
1,189
843
439
469
21,355
750
578
279
6,381
1,256

1,498
6,615
428
1,130
5,978
399
1,756
13
322
416
52
3,397
308
2,992
363
233
3,809
1,760

67
499
1,256
790
449
674
21,969
795
639
427
7,420
1,411

1,696
7,310
386
1,102
5,715
376
1,769
7
321
352
72
3,178
321
2,826
321
223
3,337
1,550

65
546
1,400
804
575
669
21,428

1,812
7,276
463
1,154
6,846
357
1,867
13
274
386
43
3,160
361
2,494
347
221
3,706
1,501

613
379
8,121
1,283

105
502
1,436
838
357
617
21,764
827
549
307
7,866
1,297

111

2,645

2,540

2,636

312
30
294
43
1,335
622

2,886
404
32
168
43
1,525
715

2,694

2,805

1,090

1,189

1,187

1,076

860

838
239

655
204

1,131

417
74
238
45
1,270
601

322
84
266
39
1,230
600

337
29
179
48
1,379
721

279
32
207
42
1,549
697

64 Other countries.......................................................
65 Australia.............................................................
66 All other.............................................................

2,006
113

2,012
1,905
107

1,297

1,180

1,140
158

1,051
130

899
191

67 Nonmonetary international and regional
organizations...................................................

5,699

5,714

3,274

2,823

3,406

2,929

2,225

2,617

2,312

2,095

International......................................................
Latin American regional......................... ........
Other regional7..................................................

5,415
188
96

5,157
267
290

2,752
278
245

2,157
437
228

2,339
799
269

1,789
856
284

1,033
870
323

.1,485
808
324

1,210
804
299

919
865
311

68
69
70

1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3 Included in “Other Latin America and Caribbean” through March
1978.
4 Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




975
213

950
236

933
198

6 Comprises Algeria, Gabon, Libya, and Nigeria.
7 Asian, African, Middle Eastern, and European regional organizations,
except the Bank for International Settlements, which is included in
“Other Western Europe.”
N ote. For a description of the changes in the International Statistics
tables, see July 1978 Bulletin, p. 612.

Bank-reported Data

A 61

3.16 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Area and country

1975

1976

1978

1977
Aug.

Sept.

Oct.

1979
Nov.

Dec.

Jan.33

Feb .p

1

58,308

79,301

90,206

92,269

94,620

96,820 105,337 114,606 105,859 103,765

2 Foreign countries....................................................

58,275

79,261

90,163

92,231

94,581

96,779 105,291 114,550 105,819 103,725

3 Europe.....................................................................
4 Austria................................................................
5 Belgium-Luxembourg........................................
6 Denmark.............................................................
7 Finland................................................................
8 France.................................................................
9 Germany.............................................................
10 Greece.................................................................
11 Italy.....................................................................
12 Netherlands........................................................
13 Norway...............................................................
14 Portugal..............................................................
15 Spain...................................................................
16 Sweden................................................................
17 Switzerland.........................................................
18 Turkey................................................................
19 United Kingdom................................................
20 Yugoslavia..........................................................
21
Other Western Europe *.....................................
22
U.S.S.R...............................................................
23 Other Eastern Europe2.....................................

11,109

14,776

18,114

17,172

18,390

19,327

35
286
104
180
1,565
380
290
443
305
131
30
424
198
199
164
5,170
210
76
406
513

63
482
133
199
1,549
509
279
993
315
136
88
745
206
379
249
7,033
234
85
485
613

65
561
173
172
2,082
644
206
1,334
338
162
175
722
218
564
360
8,964
311
86
413
566

107
847
146
216
2,573
645
125
1,037
403
163
105
676
290
1,013
305
7,206
281
125
343
564

95
964
147
221
2,831
742
126
1,016
379
263
99
735
325
871
305
7,890
307
128
370
575

111
1,052
160
232
2,752
808
161
1,355
494
238
106
929
348
781
293
8,065
293
147
387
617

20,504

142
1,232
193
260
2,716
838
134
1,453
602
282
180
980
465
1,045
283
8,356
302
107
321
612

24,181

140
1,200
254
305
3,737
900
164
1,504
680
299
171
1,110
537
1,283
283
10,124
363
122
366
638

20,740

147
1,504
172
281
2,632
840
162
1,402
683
251
169
905
449
1,051
179
8,434
400
135
327
619

20,491

115
1,376
170
264
2,317
111
169
1,395
621
252
173
1,102
388
970
132
8,883
409
110
309
619

24 Canada ....................................................................

2,834

3,319

3,355

3,349

3,451

3,586

4,552

5,142

4,954

5,047

25 Latin America and Caribbean ................................
26 Argentina............................................................
27
Bahamas..............................................................
28 Bermuda..............................................................
29 Brazil...................................................................
30 British West Indies............................................
31
Chile....................................................................
32 Colombia............................................................
33 Cuba....................................................................
34 Ecuador..............................................................
35 Guatemala3........................................................
36 Jamaica3..............................................................
37 Mexico................................................................
38 Netherlands Antilles4.........................................
39 Panama...............................................................
40 Peru.....................................................................
Uruguay..............................................................
41
42 Venezuela............................................................
Other
Latin America and Caribbean...............
43

23,863

38,879

45,850

49,216

49,482

49,267

54,341

56,507
2,266

52,834

50,181

3,745
72
1,138
805
57
1,319
1,302

4,822
140
1,372
933
42
1,828
1,293

44 Asia .........................................................................
45 China (Mainland)..............................................
46 China (Taiwan)..................................................
47 Hong Kong........................................................
48 India....................................................................
49 Indonesia............................................................
50 Israel....................................................................
51 Japan...................................................................
52 Korea..................................................................
53 Philippines..........................................................
54 Thailand..............................................................
55 Middle East oil-exporting countries 5...............
56 Other Asia..........................................................

17,706

57 A frica ......................................................................
58 Egypt...................................................................
59 Morocco..............................................................
60 South Africa.......................................................
61
62 Oil-exporting countries6....................................
63 Other...................................................................

1,933

64
65
66
67 Nonmonetary international and regional

1,377
7,583
104
3,385
1,464
494
751
14
252

22
1,053
289
57
246
721
10,944
1,791
534
520
744
785
123
8
657
181
382
581
830

4,909
224
1,410
962
80
2,318
1,394

1,566
21,825
194
4,838
7,019
809
687
1
560
86
44
5,016
198
1,631
930
56
2,513
1,245

1,690
19,110
141
5,252
8,397
742
727
1
646
79
46
5,010
230
2,280
967
51
2,746
1,367

19,204

19,236

19,256

31
1,177
790
73
125
504
9,853
1,925
728
685
2,099
1,265

20,037

10
1,719
543
53
232
584
9,839
2,336
594
633
1,746
947

2,311

2,518

2,264

119
43
1,066
98
510
682

62
42
1,058
79
458
565

772

1,090

974

1,192
15,464
150
4,901
5,082
597
675
13
375

3
1,344
316
69
218
755
11,040
1,978
719
442
1,459
863
126
27
957
112
524
565

700
130

597
175

33

40

1 Includes the Bank for International Settlements. Beginning April
1978, also includes Eastern European countries not listed in line 23.
2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German
Democratic Republic, Hungary, Poland, and Romania.
3 Included in “Other Latin America and Caribbean” through March
1978.
4 Includes Surinam through December 1975.
5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).




1,478
19,858
232
4,629
6,481
675
671
10
517

905
186

829
145

43

38

1,447
19,208
352
5,596
7,170
832
793
*
621
85
45
4,927
212
2,480
945
63
3,105
1,386

1,698
23,541
141
6,137
6,432
862
936
4
680
89
49
5,255
242
2,531
931
58
3,367
1,388

21,118
189
6,251
9,173
968
1,012
*
705
94
40
5,417
268
3,074
918
52
3,474
1,487

2,134
20,890
185
6,259
5,327
1,012
1,054
*
700
87
37
5,449
259
3,656
873
50
3,324
1,538

21,358

22,691

25,511

4
1,499
1,573
54
143
872
12,734
2,277
680
753
3,118
1,804

24,233

6
1,356
1,385
46
188
719
11,997
1,741
111
758
2,188
1,592
2,163

68
36
906
162
439
551

2,221
107
82
860
164
452
556

2,145

1,041

988

914

8
1,241
903
76
152
544
10,260
1,933
730
633
2,200
1,357

10
1,285
1,368
66
144
555
10,568
1,788
732
734
2,097
2,012

2,158

2,219

67
38
1,022
82
406
544

1,063

894
168
39

56
40
990
161
438
534

1,023

879
145
41

894
147
45

877
111
56

15
1,457
1,620
61
141
996
12,565
2,239
607
751
2,332
1,451
82
97
838
156
438
533

2,359
18,658
155
6,112
5,054
939
1,019
*
768
109
48
5,394
217
3,493
846
44
3,481
1,485

25,102

13
1,757
1,960
60
123
896
12,219
2,478
692
832
2,487
1,585
2,092

83
88
760
155
456
551

812

792
122

704
108

40

39

6 Comprises Algeria, Gabon, Libya, and Nigeria.
7 Excludes the Bank for International Settlements, which is included
in “Other Western Europe.”
N ote. Data for period prior to April 1978 include claims of banks’
domestic customers on foreigners. For a description of the changes in
the International Statistics tables, see July 1978 Bulletin, p. 612.

A62

In te rn a tio n a l Statistics □ A p r il 1979

3.17 BANKS’ OWN AND DOMESTIC CUSTOMERS’ CLAIMS ON FOREIGNERS Reported by Banks in the
United States
Payable in U.S. Dollars
Millions of dollars, end of period

Type of claim

1975

1976

1978

1977
Aug.

1 Total.......................................................................

§8,308

79,301

90,206

Sept.

Oct.

1979
Nov.

Dec.

Jan.*

Feb.?

103,736

125,616

2 Banks’ own claims on foreigners.........................

92,269

94,620

96,820 105,337 114,606 105,859 103,765

3
4
5
6
7
8

7,591
37,537
27,500
4,595
22,905
19,641

8,006
35,001
31,448
4,688
26,760
20,165

8,051
36,357
31,080
3,965
27,115
21,332

Foreign public borrowers.................................
Own foreign offices *.................................. .
Unaffiliated foreign banks.................................
Deposits..........................................................
Other...............................................................
All other foreigners............................................

9,116

9 Claims of banks’ domestic customers2...............
10
11
12

Deposits. ............................................................
Negotiable and readily transferable in­
struments 3...................................................
Outstanding collections and other claims4. .. .

5,467

5,756

13 Memo* Customer liability on acceptances...
1 U.S. banks: includes amounts due from own foreign branches and
foreign subsidiaries consolidated in “Consolidated Report of Condition”
filed with bank regulatory agencies. Agencies, branches, and majorityowned subsidiaries of foreign banks: principally amounts due from head
office or parent foreign bank, and foreign branches, agencies, or whollyowned subsidiaries of head office or parent foreign bank.
2 Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the account of their domestic customers.




6,176

9,197
40,412
33,461
4,370
29,090
22,267

10,047
40,882
40,379
5,506
34,873
23,298

10,287
38,373
34,515
4,689
29,826
22,685

10,494
35,551
34,643
5,163
29,480
23,077

11,009

500

972

3,724
4,892

4,762
5,275

12,747

14,837

3 Principally negotiable time certificates of deposit and bankers ac­
ceptances.
4 Data for March 1978 and for period prior to that are outstanding
collections only.
N ote. Beginning April 1978, data for banks1 own claims are given
on a monthly basis, but the data for claims of banks’ domestic customers
are available on a quarterly basis only.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.

Bank-reported Data

A 63

3.18 BANKS’ OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States
Payable in U.S. Dollars
Millions of dollars, end of period
Maturity; by borrower and area

1978

1978

1979
June

1 Total.........................................................................
By borrower

Sept.?

1979
Dec.*

55,128

59,516

73,250

3
4

Foreign public borrowers................................
All other foreigners..........................................

43,682
2,919
40,763

46,684
3,640
43,044

57,982
4,497
53,486

5
6
7

Maturity of over 1 year1.....................................
Foreign public borrowers................................
All other foreigners..........................................

11,445
3,162
8,283

12,832
3,928
8,904

15,268
5,315
9,952

8
9
10
11
12
13

By area
Maturity of 1 year or less1
Europe...............................................................
Canada..............................................................
Latin America and Caribbean........................
Asia...................................................................
Africa................................................................
Allother2..........................................................

9,532
1,615
17,036
13,515
1,461
523

10,386
1,943
18,518
13,712
1,535
591

14,934
2,662
20,813
17,500
1,512
562

14
15
16
17
18
19

Maturity of over 1 year1
Europe...............................................................
Canada..............................................................
Latin America and Caribbean.........................
Asia...................................................................
Africa................................................................
All other2..........................................................

2.979
330
5.979
1,282
629
247

3,104
793
6,843
1,305
577
211

3,163
1,426
8,444
1,393
629
214

1 Remaining time to maturity.
2 Includes nonmonetary international and regional organizations.

Mar.

June

Sept.

N ote. The first available data are for June 1978. For a description of
the changes in the International Statistics tables, see July 1978 Bulletin,
p. 612.

3.19 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States
Payable in Foreign Currencies
Millions of dollars, end of period

Item

1975

1976

1978
1977
Mar.

1 Banks’ own liabilities.....................................................................
2 Banks’ own claims1.......................................................................
3 Deposits......................................................................................
4 Other claims...............................................................................
5 Claims of banks’ domestic customers2........................................

560
1,459
656
802

1 Includes claims of banks’ domestic customers through March 1978.
2 Assets owned by customers of the reporting bank located in the
United States that represent claims on foreigners held by reporting banks
for the accounts of their domestic customers.




781
1,834
1,103
731

925
2,356
941
1,415

986
2,383
948
1,435

June
1,704
3,153
1,290
1,863
809

Sept.*
1,981
3,530
1,386
2,144
446

Dec.*
2,055
3,612
1,797
1,815
400

N ote. Data on claims exclude foreign currencies held by U.S. monetary authorities.
For a description of the changes in the International Statistics tables,
see July 1978 Bulletin, p. 612.

A64
3 .2 0

In te rn a tio n a l Statistics □ A p r il 1979
M A R K E T A B L E U .S . T R E A S U R Y B O N D S A N D N O T E S
Millions o f dollars

Country or area

1977

1978

F o r e ig n H o ld in g s a n d T r a n sa c tio n s

1979
Jan.Feb. p

1978
Aug.

Sept.

Oct.

1979
Nov.

Dec.

Jan

p

Feb.?

Holdings (end of period) <
1 Estimated total1. .

38,640

44,933

41,578

42,217

43,627

43,852

44,933

46,166

46,975

2 Foreign countries1

33,894

39,812

37,124

37,830

38,476

38,474

39,812

41,297

42,271

13,936

17,072

14,154

14,689

15,260

15,654

17,072

18,360

19,853

Europe1.............................

3
4
5

Belgium-Luxembourg..
Germany1.....................
Netherlands.................
Sweden.........................
Switzerland...................
United Kingdom..........
Other Western Europe.
Eastern Europe............

6
7
8
9
10
11

19
3,168
911
100
497
8,888
349
4

19
8,705
1,358
285
977
5,373
354

19
5,761
1,278
210
636
5,862
387

19
6,157
1,306
211
694
5,909
393

19
6,645
1,356
231
731
5,915
365

19
7,102
1,351
266
915
5,674
327

19
8,705
1,358
285
977
5,373
354

19
8,864
1,433
320
1,818
5,489
417

19
10,212
1,517
355
1,508
5,823
420

12

Canada.

288

152

276

276

151

151

152

150

146

13
14
15
16

Latin America and Caribbean................
Venezuela..............................................
Other Latin American and Caribbean.
Netherlands Antilles............................

551
199
183
170

416
144
110
162

545
244
139
162

445
144
139
162

426
144
119
162

416
144
109
162

416
144
110
162

395
144
88
162

379
144
72
162

17
18

Asia.......
Japan.

18,745
6,860

21,483
11,528

21,652
10,791

21,924
11,096

21,942
11,560

21,565
11,483

21,483
11,528

21,704
12,226

21,205
12,422

19

Africa........

362

691

491

491

691

691

691

691

691

20

All other.

11

-3

7

5

6

-3

-3

-3

-3

21 Nonmonetary international and regional
organizations.....................................

4,746

5,121

4,454

4,387

5,151

5,378

5,121

4,869

4,704

22
23

4,646
100

5,089
33

4,421
33

4,354
33

5,118
33

5,345
33

5,089
33

4,837
33

4,666
38

International....................
Latin American regional.

Transactions (net purchases, or sales ( —), during period)
24 Total i ...................

22,843

6,292

2,042

425

639

1,410

225

1,081

1,233

809

25 Foreign countries1

21,130

5,916

2,460

813

706

646

-3

1,338

1,485

974

'20,377
'753

3,712
2,205

-407
2,868

710
103

704
3

577
69

69
-7 2

-3 4 6
1,683

111
1,375

-5 1 7
1,493

28 Nonmonetary international and regional
organizations.....................................

1,713

375

-417

-387

-6 7

764

227

-256

-252

-165

Memo: Oil-exporting countries
29 Middle East 2..........................
30 Africa 3....................................

4,451
-181

-1 ,7 8 5 -1 ,1 5 4
*
329

-3 1

-3 1

-401
200

-241
-1

-127

-461

-693
*

26
27

Official institutions.
Other foreign1........

1 Beginning December 1978, includes U.S. Treasury notes publicly
issued to private foreign residents.
2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia,
and United Arab Emirates (Trucial States).
3 Comprises Algeria, Gabon, Libya, and Nigeria.

3.21

4 Estimated official and private holdings of marketable U.S. Treasury
securities with an original maturity of more than 1 year. Data are based
on a benchmark survey of holdings as of Jan. 31, 1971, and monthly
transactions reports. Excludes nonmarketable U.S. Treasury bonds and
notes held by official institutions of foreign countries.

FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS
Millions of dollars, end of period

Assets

1976

1977

1978

1978
Sept.

352
Assets held in custody :
3

Earmarked gold2..............................................

66,532
16,414

424

325

305

Nov.
379

Dec.
367

Jan.
338

Feb.
343

Mar.?
351

91,962 117,126 102,699 107,934 112,434 117,126 116,961 114,005 105,362
15,988 15,463 15,553 15,548 15,525 15,463 15,448 15,432 13,107

1 Marketable U.S. Treasury bills, certificates of indebtedness, notes,
and bonds; and nonmarketable U.S. Treasury securities payable in dollars
and inforeign 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 October 1973.




367

Oct.

1979

N ote. Excludes deposits and U.S. Treasury securities held for international and regional organizations. Earmarked gold is gold held for
foreign and international accounts and is not included in the gold stock
of the United States,

Investment transactions
3 .2 2

A65

F O R E I G N T R A N S A C T I O N S I N S E C U R IT IE S
Millions o f dollars

Transactions, and area or country

1977

1978

1978
Jan.Feb.^

Aug.

Sept.

1979

Oct.

Nov.

Dec.

Jan.**

Feb.p

U.S. corporate securities

1
2

Stocks
Foreign purchases..............................................
Foreign sales......................................................

14,155
11,479

20,130
17,723

2,745
2,565

2,446
2,680

2,357
2,115

1,509
1,523

1,461
1,359

1,438
1,102

1,361
1,301

1,384
1,264

3

Net purchases, or sales ( —) ...............................

2,676

2,408

180

-235

241

-1 4

103

336

60

120

4

Foreign countries................................................

2,661

2,454

165

-235

244

-1 5

102

336

61

104

5
6
7
8
9
10

Europe............................................................
France..........................................................
Germany.....................................................
Netherlands................................................
Switzerland..................................................
United Kingdom........................................

1,006
40
291
22
152
613

1,271
47
620
-2 2
-585
1,218

45
10
2
-5 0
-1 8
104

-1 5 2
9
-5 4
-2 2
-1 8 4
110

-3 3
2
24
7
-115
54

-9 1
-4
-3 0
7
-118
58

-1 0
1
8
6
-8 8
67

264
-3 8
264
-9
-2 3
74

-7
-6
-1 8
-3 5
-3 0
85

52
16
20
-1 5
12
19

11
12
13
14
15
16

Canada............................................................
Latin America and Caribbean......................
Middle East1..................................................
Other Asia......................................................
Africa..............................................................
Other countries..............................................

65
127
1,390
59
5
8

74
151
781
187
-1 3
3

1
8
30
80
5
-4

-1 8
48
-1 3 4
34
-1 2
-1

117
1
120
35
5

-1

22
13
42
-4
2
2

6
-2
109
1
-2

38
16
4
15
-1
1

7
34
-1 6
49
-2
-4

-6
-2 5
46
30
6
1

15

-4 6

15

*

-3

1

1

7,739
3,546

7,955
5,453

1,094
1,251

868
490

610
550

727
530

437
388

20

4,192

2,502

-157

379

60

197

21

4,096

2,093

83

326

62

137

Europe............................................................
France.........................................................
Germany.....................................................
Netherlands................................................
Switzerland.................................................
United Kingdom........................................

1,863
-3 4
-2 0
72
94
1,703

972
30
119
19
-1 0 0
936

149
18
55
-1 4
15
39

137
6
38
18
-2 0
89

80
-2
-5
19
43

89
-1 0
-12
-4
9
110

28
29
30
31
32
33

Canada............................................................
Latin America and Caribbean......................
Middle East1..................................................
Other Asia......................................................
Africa..............................................................
Other countries..............................................

141
64
1,695
338
-6
*

102
78
810
131
-1
1

21
32
-1 4 0
20
1

24
17
99
48

16
11
-7 3
28
*
*

-5
13
-1 9
60
*

34

Nonmonetary international and regional
organizations...............................................

96

409

-240

17

Nonmonetary international and regional

Bonds2
18 Foreign purchases..............................................
19 Foreign sales.......................................................

22
23
24
25
26
27

*

*

1
53

*

*

-3

1

*
*

*

-1

16

884
558

641
704

453
547

49

326

-6 3

-9 4

39

134

54

28

25
3
6
-1
9
9

152
17
10
-6
39
115

39
18
42
-4
8
-5 4

*

110

6
5
-2 1
-5
*
-3

11
23
-3 4
16

10
9
-1 0 6
4
1

-1

-8
23

*

*
*

13
-10
6
93

*

60

10

192

-118

-1 2 2

Foreign securities
35
36
,37

Stocks, net purchases, or sales (—)................

38
39
40
41
42
43
44
45
46
47
48
49

527
3,666
3,139

-1 7
497
514

52
383
331

-6 9
261
330

-1 9
299
318

163
360
197

-1 2
232
244

11
265
254

-2 8
232
260

Bonds, net purchases, or sales (—).................

-5 ,0 9 6 -4 ,0 1 7
8,040 11,044
13,136 15,061

-872
1,725
2,597

-205
990
1,195

36
762
726

-6 7 7
941
1,618

-4 4 6
856
1,302

73
1,020
948

-5 5 0
783
1,333

-3 2 2
942
1,264

Net purchases, or sales (—)of stocks and bonds..
Foreign countries.......................................

-5 ,5 0 6

-3 ,4 9 0

-889

-153

-3 3

-6 9 6

-283

61

-5 4 0

-3 4 9

-3 ,9 4 9

-267

-3 ,3 1 3
-4 0
-3 ,2 3 7
201
350
-441
-1 4 6

-653
-166
-490
130
-122
-8
3

-157
94
-161
-1 7
46
-123
3

-6 7
-8 6
-4 1
-1 2
72
-1
1

-5 0 7
13
-747
-1 7
236
1
6

-3 0 3
-102
-2 4 6
18
21
1
4

19
53
-2 4
*
-1 5
*
5

-5 1 3
-1 2 4
-305
60
-141
-3
1

-1 4 1
-42
-1 8 4
70
19
-5

-1 ,5 5 7

-177

-236

5

34

-189

20

41

-2 7

-209

Foreign purchases..............................................
Foreign sales......................................................
Foreign purchases..............................................
Foreign sales......................................................

Europe................................................................
Canada................................................................
Latin America and Caribbean..........................
Asia.....................................................................
Africa..................................................................
Other countries..................................................

Nonmonetary international and regional
organizations......................................

-410
2,255
2,665

-1,100

-2 ,4 0 4
-8 2
-9 7

2

2

2 Includes state and local government securities, and securities of U.S.
1 Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq,
government agencies and corporations. Also includes issues of new debt
Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial
securities sold abroad by U.S. corporations organized to finance direct
States).
investments abroad.




A 66

In te rn a tio n a l Statistics □ A p r il 1979

3.23 SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns
in the United States
Millions of dollars, end of period
1977

Type, and area or country
Sept.

1978
Dec.

Mar.

June

1977
Sept.

Sept.

Dec.

Liabilities to foreigners
1 Total.......................................................................
2
3
4
5

1978
Mar.

June

Sept.

Claims on foreigners

7,243

7,910

8,361

8,792

9,645

15,223

16,221

18,399

18,162

18,260

6,386

7,109

7,477

7,967

8,794

14,120

14,803

16,636

16,598

16,291

857

801

884

825

851

1,104

1,418

1,763

1,564

1,969

414
690

613
805

783
980

613

890

804
1,165

18,397

18,160

5,508

5,273

18,258

By type
Payable in foreign currencies .............................

Deposits with banks abroad in reporter’s
name........................................................
Other...............................................................

By area or country
6 Foreign countries....................................................
7
Austria............................................................
8
9
Belgium-Luxembourg....................................
10
11
France.............................................................
12
13
14
Greece.............................................................
Italy.................................................................
15
Netherlands....................................................
16
17
18
19
Sweden............................................................
20
21
22
23
24
25
U.S.S.R...........................................................
26
27

7,089

2,317

19
126
16
11
170
226
78
107
180
12
12
74
41
257
97
765
92
9
11
14

7,695

2,491

21
116
14
9
238
284
85
128
232
7
11
77
28
263
108
735
90
10
24
12

8,214

8,661

9,521

15,222

16,220

2,820

2,993

3,159
33

5,062
24
226
44
59
430

5,764
24

26
171
23
12
273
335
108
104
253
9
7
94
37
211
93
937
82
8
15
23

26
167
22
3
302
356
82
156
220
18
25
105
38
282
92
962
84
18
19
17

165
17
4
260
391
71
188
222
23
11
110
51
308
102
1,058
76
17
27
25

395
52
351
161
38
34
307
91
146
32
2,479
20
15
62
96

211
56
13
513
450
41
387
166
40
69
387
117
220
39
2,795
20
25
55
135

21
187
47
13
545
420
42
381
184
40
27
408
117
202
35
2,619
24
33
44
121

28
155
40
53
533
436
40
451
192
45
54
376
78
285
29
2,338
27
24
37
51

5,887
25

112
34

50
622
534
44
400
175
42
34
351
80
346
31
2,818
23
28
33
45

28

Canada ................................................................

451

504

530

524

566

2,649

2,681

3,428

3,502

3,724

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

Latin America ....................................................

1,038

1,353
53

1,421
14

1,532

4,619
53

4,467

5,943
53

6,001

3,122
482
40
80

61

5,142
65

103
12
13
4
210
122
9
154

1,201
40
329
49
17
42
*
114
22
15
3
216
118
25
209

169
12
22
5
264
107
41
250

185
71
17
9
185
101
30
299

235
59
19
7
232
121
19
213

2,583

2,835

2,814

3,008

3,517
4
116
61
23
49

2,905
23

44
45
46
47
48
49
50
51
52
53
54
55

Argentina.............................................. .........

Chile...............................................................
*

Cuba...............................................................
Panama...........................................................
Peru.................................................................
Uruguay..........................................................
Venezuela........................................................
Other Latin American republics...................
Other Latin America.....................................

1
152
25
44
60
58
604
75
78
17
1,469

China, Mainland...........................................
China, Taiwan................................................
Hong Kong....................................................
Indonesia........................................................
Israel...............................................................
Japan..............................................................

Other Asia......................................................

56
57
58
59
60
61

Africa

62
63
64

Other countries...................................................

588
45

Egypt..............................................................
Morocco.........................................................
South Africa...................................................
Zaire...............................................................
Other Africa...................................................

105
29
48
361

Australia.........................................................
All other.........................................................

65 Nonmonetary international and regional

50
248
76
13
24

|

8
156
40
37
56
63
695
103
74
17
1,588
571

13
112
20i
46
380i

*

321
63
23
42

1
167
32
26
57
68
761
99
95
11
1,498

1
170
30
10
59
59
807
107
107
27
1,631

594

603
25

19
130
30
55
360i

*

131
353
87
14
42

1,963
414
40
85
*
302
222
30
5
251
257
8
989

2,398

12

139
13
42

68
865
103
157
43
1,968

184
46
1,026
153
111
24
587

661
34

340

148
36
57
338

145
34
56
391

18
10
75
19
218

85

153

111
93
18:

93'

104

75;
IS!

89
14

111
97
14

12
14

154t

215i

147

132

125

N ote. Reported by exporters, importers, and industrial and commercial concerns and other nonbanking institutions in the United States.




*

327
62
14
26

113
41
1

53
2,019
493
45
84
*
314
91
32
5

312
175
30
6
306
268
24
1,045

3,081
479
37
79
*
331
97
30
4
309
229
19
1,245

2,777
9
151

2,970

2,810

144

113
92

269
281
12
768

*

22

21

98
38
375
38
1,068
171
99
23
702

85
85
185
47
1,379
133
94
32
764

93
152
43
1,142
168
96
30
800

386
34

402
31

430

2,350
418
40
69
1
382
76
25
5
284
223
21
1,183

157
127
85
167
86
1,157
161
107
29
804
441
29
16
14

15
15
241

268

36
16
88
16
274

146

145

143

158

1

2

2

21

111
35
1

22
11
11

111
34

109
34

12

311

118
40

Data exclude claims held through U.S. banks and intercompany accounts
between U.S. companies and their affiliates.

Nonbank-reported Data
3 .2 4

S H O R T -T E R M C L A I M S O N F O R E I G N E R S
Millions o f dollars, end o f period

A 67

R e p o r te d b y L a rg e N o n b a n k in g C o n c e r n s in th e U n it e d S ta te s

1978
Type and country

1974

1975

1 Total.......................................................................

3,357

3,799

5,720

2 ,660

3,042

4,984

By type

Aug.

Sept.

Oct.

Nov.

Dec.?

7,136

8,949

10,098

8,635

10,503

11,223

9,515

7,409

9,240

9,981

6,264

6,121
5,703
418

7,172
471

7,64^

8,818

8,282
536

6,985
424

8,688
552

735

404
331

1,015

1,305

1,280

1,225

1,263

1,241

1,252

268

757
511
246

1,350
967
391
398
252

1,306
1,156
546
343
446

1,838
1,698
1,355
133
716

2,949
2,858
2,819
234
1,643

3,137
2,833
3,033
249
1,971

2,728
2,144
2,519
203
1,921

2,591
69

5
6
7

Payable in foreign currencies.............................

697
429

By country
United Kingdom................................................
Canada................................................................
Bahamas..............................................................
Japan...................................................................
All other..............................................................

July

4,505
479

Deposits..........................................................
Short-term investments 1...............................

8
9
10
11
12

1977

2,710
332

3
4

Deposits..........................................................
Short-term investments 1...............................

1976

1 Negotiable and other readily transferable foreign obligations payable
on demand or having a contractural maturity of not more than 1 year
from the date on which the obligation was incurred by the foreigner.

547
468

2,120
1,777
1,896
153
1,190

689
616

1,878
2,537
3,217
279
1,038

660
620

1,869
3,013
3,543
276
1,397

730
495

2,246
2,452
2,247
250
1,440

789
474

9,362
619
111
470

7,744
520
873
379

N ote. Data represent the 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 3.26.

3.25 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS
in the United States

Reported by Nonbanking Concerns

Millions of dollars, end of period
1977

Area and country
Sept.

1978
Dec.

Mar.

June

1977
Sept.

Sept.

Liabilities to foreigners

1978
Dec.

Mar.

June

Sept.

Claims on foreigners

1 Total.......................................................................

3,331

3,175

3,149

3,077

3,122

4,719

5,077

5,143

5,067

5,007

2 Europe...................................................................
3 Germany............................................................
4 Netherlands........................................................
5 Switzerland........................................................
6 United Kingdom................................................

2,555
407
272
224
1,237

2,425
255
287
241
1,222

2,498
295
292
241
1,228

2,422
282
266
236
1,214

2,471
290
275
246
1,253

833
79
81
42
282

864
74
82
49
310

937
75
81
48
332

943
71
76
55
363

927
76
74
58
341

7 Canada...................................................................

67

62

58

56

65

1,462

1,776

1,792

1,811

1,779

8 Latin America........................................................
9 Bahamas.............................................................
10 Brazil..................................................................
11 Chile...................................................................
12 Mexico................................................................

289
151
7
1
30

284
148
7
1
30

248
142
6
1
27

248
141
7
1
26

234
138
7
1
29

1,367
36
134
201
187

1,402
40
144
203
177

1,387
42
154
194
183

1,298
2
143
190
188

1,283
2
144
176
217

13 Asia.........................................................................

358
319

342
305

284
250

290
255

289
254

829
94

817
66

810
83

803
78

812
70

15 Africa.....................................................................

3

2

2

2

3

165

161

156

154

149

16 All other i ...............................................................

59

60

60

60

61

63

59

60

59

56

1 Includes nonmonetary international and regional organizations.




A68
3.26

International Statistics □ April 1979
D I S C O U N T R A T E S O F F O R E IG N C E N T R A L B A N K S
Percent per annum
Rate on Mar. 31, 1979

R ate on M ar. 31, 1979
Per­
cent
A rgentina..........................
A ustria................................
Belgium..............................
B razil..................................
C an ad a...............................

Per­
cent

M onth
effective

18.0
3.75
6 .0
33.0
11.25
8.0

Feb.
Jan.
July
Nov.
Jan.
July

1972
1979
1978
1978
1979
1977

Germany, Fed. Rep. of.

N etherlands....................

N ote. Rates shown are mainly those at which the central bank either
discounts or makes advances against eligible commercial paper and/or
government securities for commercial banks or brokers. For countries with

3.27

Rate on M ar. 31, 1979

C ountry

C ountry

9.5
4 .0
10.5
3.5
4 .5
6.5

C ountry

M onth
effective
Aug.
Mar.
Sept.
M ar.
June
Oct.

1977
1979
1978
1978
1942
1978

Per­
cent

M onth
effective

7 .0
6.5
1.0
13.0
5.0

U nited K ingdom ...........

Feb.
July
Feb.
M ar.
Oct.

1978
1978
1978
1979
1970

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.

F O R E IG N S H O R T -T E R M IN T E R E S T R A T E S
Percent per annum , averages o f daily figures
1978
1976

C ountry, o r type

1977

1979

1978
Oct.

Nov.

Dec.

Jan.

Feb.

M ar.

5.58
11.35
9.39

6.03
8.07
7.47

8.74
9.18
8.52

10.12
10.44
9.68

11.51
12.00
10.37

11.62
12.28
10.44

11.16
12.61
10.87

10.79
13.28
10.94

10.64
11.98
11.08

G erm any.....................................................................
Sw itzerland.................................................................
N etherlands.................................................................
F ran ce............................................................... ..........

4.19
1.45
7.02
8.65

4.30
2.56
4.73
9.20

3.67
0.74
6.53
8.10

3.90
0.24
11.23
7.37

3.81
0.20
8.86
7.06

4.09
0.22
10.25
6.59

3.85
0.05
8.69
6.55

4.13
0.13
7.42
6.83

4.42
0.03
7.35
7.05

8 Ita ly ..............................................................................

16.32
10.25
7.70

14.26
6.95
6.22

11.40
7.14
4.75

10.99
8.55
4.44

11.17
9.19
4.78

11.24
9.28
4.76

11.12
8.93
4.52

11.38
8.23
4.50

11.46
7.63
4.54

1 E u ro d o lla rs................................................................

4
5
6
7

10 Ja p a n ............................................................................

N ote. Rates are for 3-month interbank loans except for—Canada,
finance company paper; Belgium, time deposits o f 20 million francs and

3.28

over; and Japan, loans and discounts that can be called after being held
over a minimum o f two month-ends.

F O R E IG N E X C H A N G E R A T E S
Cents per unit o f foreign currency

Country/currency

1976

1977

1979

1978
1978
Oct.

Nov.

Dec.

Jan.

Feb.

M ar.

1
2
3
4
5

A ustralia/dollar....................
Austria/schilling...................
Belgium/franc.......................
C anada/dollar.......................
D enm ark/krone...................

122.15
5.5744
2.5921
101.41
16.546

110.82
6.0494
2.7911
94.112
16.658

114.41
6.8958
3.1809
87.729
18.156

116.87
7.4526
3.4503
84.546
19.584

114.53
7.1808
3.3389
85.244
19.025

114.15
7.2621
3.3637
84.763
19.063

114.04
7.3821
3.4276
84.041
19.487

113.12
7.3510
3.4153
83.638
19.423

112.15
7.3312
3.3971
85.187
19.269

6
7
8
9
10

Finland/m arkka...................
F rance/franc.........................
Germany/deutsche m a rk ...
India/rupee...........................
Ireland/pound.......................

25.938
20.942
39.737
11.148
180.48

24.913
20.344
43.079
11.406
174.49

24.337
22.218
49.867
12.207
191.84

25.454
23.767
54.430
12.643
200.75

24.932
22.958
52.508
12.458
196.08

24.957
23.178
53.217
12.174
198.61

25.252
23.570
54.056
12.185
200.53

25.186
23.395
53.862
12.124
200.42

25.161
23.328
53.754
12.138
203.73

11
12
13
14
15

Italy/lira.................................
Japan/yen..............................
M alaysia/ringgit...................
M exico/peso.........................
Netherlands/guilder.............

16
17
18
19
20

New Zealand/dollar.............
N orw ay/krone......................
Portugal/escudo...................
South A frica/rand...............
Spain/peseta..........................

99.115
18.327
3.3159
114.85
1.4958

96.893
18.789
2.6234
114.99
1.3287

103.64
19.079
2.2782
115.01
1.3073

107.37
20.325
2.2342
115.00
1.4317

105.41
19.736
2.1510
115.04
1.4015

105.45
19.574
2.1472
115.01
1.4085

105.64
19.730
2.1358
114.96
1.4293

105.32
19.610
2.1065
116.76
1.4427

105.39
19.619
2.0855
118.40
1.4490

21
22
23
24

Sri Lanka/rupee...................
Sweden/krona.......................
Switzerland/franc.................
United K ingdom /pound. . .

11.908
22.957
40.013
180.48

11.964
22.383
41.714
174.49

6.3834
22.139
56.283
191.84

6.3757
23.349
65.117
200.75

6.4695
22.856
59.766
196.08

6.4700
22.808
59.703
198.61

6.4491
22.987
59.840
200.53

6.4439
22.898
59.699
200.42

6.4593
22.901
59.473
203.78

105.57

103.31

86.04

88.86

87.77

88.25

88.39

M emo:
25 United States/dollar1..........

.12044
.33741
39.340
6.9161
37.846

.11328
.37342
40.620
4.4239
40.752

.12317
.54478
45.627
4.3904
50.017

.11782
.47981
43.210
4.3896
46.284

1 Index o f weighted average exchange value o f U.S. dollar against currencies o f other G-10 countries plus Switzerland. M arch 1973 = 100.
Weights are 1972-76 global trade o f each o f the 10 countries. Series
revised as o f August 1978. For description and back data, see “Index of




.11857
.52066
45.415
4.3881
48.512

.11863
.51038
45.524
4.3950
49.120

88.52

.11955
.50571
45.487
4.4038
50.082

.11899
.49877
45.488
4.3952
49.856

.11888
.48470
45.440
4.3835
49.801

the Weighted-Average Exchange Value o f the U.S. D ollar: Revision” on
page 700 of the August 1978 B ulletin .
N ote . Averages o f certified noon buying rates in New York for cable
transfers.

A 69

Guide to
Tabular Presentation and Statistical Releases
G u id e to Ta b u l a r P r e s e n t a t io n
Sym bols and A bbreviations
c
e
P
r

C orrected
Estim ated
Prelim inary
R ev ised (N otation appears on colu m n h ead ­
ing w h en m ore than half o f figures in that
co lu m n are ch a n g ed .)
A m ou n ts insignificant in term s o f the last
d ecim al p lace sh ow n in the table (for
e x a m p le, less than 5 0 0 ,0 0 0 w h en the
sm a llest unit g iv en is m illio n s)

0
n .a .
n .e .c .
IPCs
R EITs
R Ps
SM SAs

C alcu lated to be zero
N ot availab le
N ot elsew h ere classified
In d ivid u als, partnerships, and corporations
R eal estate in vestm en t trusts
R epurchase agreem en ts
Standard m etropolitan statistical areas
C ell not ap p licab le

General Information
M inus sig n s are used to indicate (1) a d ecrea se, (2)
a n eg a tiv e figure, or (3) an ou tflow .
“ U .S . govern m en t se cu rities” m ay include guaran­
teed issu es o f U .S . govern m en t a g en cies (the flow of
funds figures also include not fu lly guaranteed issu es)

as w ell as direct ob lig a tio n s o f the Treasury. “ State
and local g o v ern m en t” also in clu d es m u n icip a lities,
sp ecial d istricts, and other p olitical su b d iv isio n s.
In som e of the tables d etails do not add to totals
b ecau se o f rounding.

S t a t ist ic a l R e le a se s
List Published Semiannually, with L atest Bulletin Reference
Issue

A n ticipated sch ed u le o f release dates for individual r e le a s e s ....................




D ecem b er 1978

P age

A -76

A 70

Federal Reserve Board of Governors
G . W i l l i a m M i l l e r , Chairm an
H e n r y C. W a l l i c h
O f f ic e

of

B oard M

em bers

Joseph R. C oyne, A ssistan t to the B oard
K en n eth A. G u e n th e r , A ssistan t to the B oard
Jay P a u l B rennem an, Special A ssista n t to the
B oard

Frank O ’B rien , Jr., Special A ssistan t to the
B oard

Joseph S. Sims, S pecial A ssistan t to the B oard
D o n a ld J. W inn, S pecial A ssistan t to the B oard

P h i l i p E. C o l d w e l l
C harles P artee

J.

O f f ic e
M

of

S t a f f D ir e c t o r

onetary and

for

Fin a n c ia l P o l ic y

Step h en H. A x ilr o d , Staff D irector
E dward C. E ttin , D eputy Staff D irector
M urray A ltm a n n , A ssistan t to the B oard
P e te r M. K eir, A ssistan t to the B oard
S t a n le y J. S ig e l, A ssista n t to the B oard
Normand R. V. B ern ard , Special A ssistan t to
the B oard

L e g a l D iv is io n

D ivision
N e a l L. P etersen , G eneral Counsel
R obert E. M annion, A sso cia te G eneral
Counsel

A lle n L. R aiken, A ssociate G eneral Counsel
C h a r le s R. M c N e ill, A ssistan t to the G eneral
Counsel

J. V ir g il M a tt in g ly , A ssista n t G eneral
Counsel

G ilb e r t T. S c h w a r tz , A ssista n t G eneral
Counsel

of

R esearch and S tatistics

James L. K ic h lin e , D irector
Joseph S. Z e ise l, D eputy D irector
John H. K a lc h b re n n er , A sso cia te D irector
John J. M ingo, Senior R esearch D ivision
Officer

E le a n o r J. S t o c k w e ll, Senior R esearch
D ivision Officer

James M. B ru n d y, A ssociate R esearch D ivision
Officer

R ob ert A. Eisenbeis, A sso cia te R esearch
D ivision Officer

O f f ic e

of the

Jared J. E n z le r , A sso cia te R esearch D ivision

Secretary

Officer

T h eodore E. A llis o n , Secretary
G r iffith L. G arw ood , D eputy S ecretary
*Edward T. M u lr e n in , A ssistan t Secretary
R ichard H. P u c k e tt, M an ager, R egulatory
Im provem ent P roject

J. C o r tla n d G. P e r e t, A sso cia te R esearch
D ivision Officer

M ic h a e l J. P r e ll , A sso cia te R esearch D ivision
Officer

H elm u t F. W e n d e l, A sso cia te R esearch
D ivision Officer

R ob ert M. Fisher, A ssistan t R esearch D ivision
D iv is io n

of

C o nsum er A

f f a ir s

J a n et O. H a rt, D irector
N a th a n ie l E. B u t le r , A sso cia te D irecto r
J era u ld C. K luckm an, A ssociate D irector
A nne G eary, A ssistan t D irector

D iv is io n
S

of

B a n k in g

u p e r v is io n a n d

Officer

F rederick M. S tr u b le , A ssistan t R esearch
D ivision Officer

Stephen P. T a y lo r , A ssistan t R esearch
D ivision Officer

L evon H. G arabedian, A ssistan t D irector

D ivision

of International

Finance

R e g u l a t io n

John E. R yan, D irector
fF red erick C. S ch ad rack , D eputy D irector
F rederick R. D a h l, A ssociate D irector
W illiam W. W iles, A sso cia te D irector
Jack M. E g ertso n , A ssistan t D irector
D on E. K lin e , A ssista n t D irector
R ob ert S. P lo tk in , A ssistan t D irector
Thomas A. Sidman, A ssista n t D irector
Sam uel H. T a lle y , A ssistan t D irector
W illiam T a y lo r , A ssistan t D irector

Edwin M. Truman, D irector
R obert F. G em m ill, A ssociate D irector
G eorge B. H en ry, A ssociate D irector
C h a r les J. Siegm an, A sso cia te D irector
S am uel P izer, Senior International D ivision
Officer

J effrey R. S h a fe r , A sso cia te International
D ivision Officer

D a le W. H en d erson , A ssistan t International
D ivision Officer

Larry J. Prom isel, A ssistan t International
D ivision Officer

*O n lo an fro m Office of the C o n tro lle r.
tO n lo an fro m th e F ed eral R ese rv e B an k o f N ew Y ork.
FRASER

Digitized for


R alph W. Sm ith, Jr., A ssistan t International
D ivision Officer

A 71

and Official Staff
N ancy

H.

O f f ic e

of

T eeters

O f f ic e

S t a f f D ir e c t o r

for

M

anagem ent

John M. D e n k le r , Staff D irector
R ob ert J. L aw ren ce, D eputy Staff D irector
Joseph W. D a n ie ls, S r., D irecto r of Equal
Em ploym ent O pportunity

H arry A. G u in ter, Program D irector for

of

S t a f f D ir e c t o r

Fe d e r a l R ese r v e B a n k A

for
c t iv it ie s

W illiam H. W a lla c e , Staff D irector
D iv is io n

of

Fe d e r a l R e s e r v e

B a n k E x a m in a t io n s

and

B

udgets

Contingency Planning
D iv is io n

of

D

ata

P r o c e s s in g

C h a r le s L. Hampton, D irector
B ru ce M. B e a r d sle y , A ssociate D irector
U y le ss D. B la c k , A ssistan t D irector
G le n n L. Cummins, A ssistan t D irector
R ob ert J. Z em el, A ssistan t D irector

A lb e r t R. H a m ilton , D irector
C ly d e H. F a rn sw o rth , Jr., A ssociate
D irector

C h a r le s W. B e n n e tt, A ssistan t D irector
P. D. R ing, A ssistan t D irector
Raymond L. Teed, A ssistan t D irector
D iv is io n

of

Fe d e r a l R e se r v e

B a n k O p e r a t io n s
D iv is io n

of

Person n el

D avid L. S h an n on , D irector
John R. W eis, A ssistan t D irector
C h a r le s W. W ood, A ssistan t D irector
O f f ic e

of th e

C ontroller

John K a k a le c , C ontroller
D iv is io n

D o n a ld
John L.
W a lte r
John D.

of

S u p p o r t S e r v ic e s

E. A n d erso n , D irector
G rizza rd , A sso cia te D irector
W. Kreim ann, A sso cia te D irector
Sm ith, A ssista n t D irector




James R. K u d lin sk i, D irector
W a lte r A lth a u s e n , A ssistan t D irecto r
B rian M. C arey, A ssista n t D irector
H arry A. G u in ter, A ssistan t D irector
Lorin S. M eeder, A ssistan t D irector

A72

Federal Reserve Bulletin □ April 1979

FOMC and Advisory Councils
Fe d e r a l O p e n M a r k e t C o m m itte e
G. W i l l i a m M i l l e r , Chairman
Jo h n B alles
R obert B lack
P hilip E. C o l d w e l l

P a u l A . V o l c k e r , Vice Chairman

M onr oe K imbrel
R obert M ayo

J. C harl es P artee
N an c y H. T eeters
H e n ry C. W allich

G e o r g e B. H e n r y , A ssociate Econom ist
M u r r a y A l t m a n n , Secretary
P e t e r M. K e i r , A ssociate Econom ist
N o r m a n d R. V. B e r n a r d , A ssistan t Secretary
M i c h a e l K e r a n , A ssociate Econom ist
N e a l L. P e t e r s e n , G eneral Counsel
James L. K i c h l i n e , A ssociate Econom ist
James H. O l t m a n , D eputy G eneral Counsel
James P a r t h e m u s , A ssociate Econom ist
R o b e r t E. M a n n i o n , A ssistan t G eneral Counsel
K a r l S c h e l d , A ssociate Econom ist
S t e p h e n H. A x i l r o d , Econom ist
E d w in M . T r u m a n , A ssociate Econom ist
H a r r y B r a n d t , A ssociate Econom ist
J oseph S. Z e i s e l , A ssociate Econom ist
R i c h a r d G. D a v i s , A ssociate Econom ist
E d w a r d C. E t t i n , A ssociate Econom ist
A l a n R. H o l m e s , M an ager , System Open M arket A ccount
P e t e r D . S t e r n l i g h t , D eputy M anager fo r D om estic O perations
S c o t t E. P a r d e e , D eputy M anager fo r Foreign O perations

Fe d e r a l A d v is o r y C o u n c il
R i c h a r d H. V a u g h a n , n i n t h d i s t r i c t , Vice President
J. W . M c L e a n , t e n t h d i s t r i c t , President
H e n r y S. W o o d b r i d g e , first district
F ra n k A. P l u m m e r , si xth district
W alter B . W r i s t o n , s e co nd district
R oger E. A n d e r s o n , s e v e n t h district
W illiam B . E a g l e s o n , Jr ., t h ir d district
C lare nce C. B a r k s d a l e , eig ht h district
M erle E. G i l l i a n d , fo ur th district
James D . B e r r y , e l e v e n t h district
J. O w e n C o l e , fifth district
C h a u n c e y E. S c h m i d t , tw e l f t h district
H e r b e r t V . P r o c h n o w , Secretary
W i l l i a m J. K o r s v i k , A ssociate Secretary

C o n su m e r A d v is o r y C o u n c il
W i l l i a m D. W a r r e n , Los A n geles, California, Chairman
M a r c i a A. H a k a l a , Omaha, Nebraska, Vice Chairman
P ercy W. L o y , Portland, Oregon
R o l a n d E. B r a n d e l , San Francisco, California
R. C. M o r g a n , El Paso, Texas
J ames L. B r o w n , M ilw aukee, Wisconsin
F lorence M. R ic e , N ew York, N ew York
M ark E. B u d n i t z , Boston, Massachusetts
Jo h n G. B u l l , Fort Lauderdale, Florida
R alph J. R o h n e r , Washington, D. C.
R a y m o n d J. S a u l n i e r , N e w York, N ew York
R obert V. B u l l o c k , Frankfort, Kentucky
H enry S. S c h e c h t e r , Washington, D. C.
C arl F e l s e n f e l d , New' York, N e w York
J ea n A. F o x , Pittsburgh, Pennsylvania
E. G. S c h u h a r t II, Amarillo, Texas
B lair C. S h ic k , Cambridge, Massachusetts
R ichard H. H o l t o n , Berkeley, California
T homas R. S w a n , Portland, Maine
E d n a D e C our se y Jo h n s o n , Baltimore, Mary­
A n n e G ary T a y l o r , Alexandria, Virginia
land
R ichard A. V an W i n k l e , Salt Lake City, Utah
R ichard F. K e r r , Cincinnati, Ohio
R ichard D. W a g n e r , Simsbury, Connecticut
R obert J. K l e i n , N e w York, N ew York
M ary W. W a l k e r , Monroe, Georgia
H arvey M. K u h n l e y , Minneapolis, Minnesota



A 73

Federal Reserve Banks, Branches, and Offices
FEDERAL RESERVE BANK,
branch, o r fa c ility
Zip

Chairman
Deputy Chairman

President
First Vice President

BO ST O N *....................... 02106

Robert M. Solow
Robert P. Henderson

Frank E. Morris
James A. McIntosh

NEW Y O R K * ................ 10045

Robert H. Knight
Boris Yavitz
Frederick D. Berkeley

Paul A. Volcker
Thomas M. Timlen

PHILADELPHIA...........19105

John W. Eckman
Werner C. Brown

David P. Eastburn
Richard L. Smoot

CLEVELAND*............. 44101

Robert E. Kirby
Arnold R. Weber
Lawrence H. Rogers, II
G. Jackson Tankersley

Willis J. Winn
Walter H. MacDonald

E. Angus Powell
Maceo A. Sloan
I. E. Killian
Robert E. Elberson

Robert P. Black
George C. Rankin

B u ffa lo......................... 14240

Cincinnati....................45201
Pittsburgh.................... 15230
RIC H M O N D *................ 23261
Baltimore..................... 21203
C harlotte..................... 28230

John T. Keane

Robert E. Showalter
Robert D. Duggan

Jimmie R. Monhollon
Stuart P. Fishburne

Culpeper Communications
and Records Center . 22701
A T L A N T A ..................... 30303
Birmingham................ 35202
Jacksonville................ 32203
M ia m i...........................33152
N a sh v ille..................... 37203
New O rleans.............. 70161
CHICAGO* ....................60690
Detroit...........................48231
ST. L O U IS ..................... 63166
Little Rock ................ 72203
Louisville ..................40232
Memphis ....................38101
M INNEAPO LIS............ 55480
Helena...........................59601
KANSAS C IT Y ............ 64198
D en v er .........................80217
Oklahoma C ity...........73125
Omaha .........................68102
DALLAS .........................75222
El P aso.........................79999
H ouston....................... 77001
San Antonio................78295
SAN FRANCISCO ....... 94120
Los A ngeles................ 90051
Portland....................... 97208
Salt Lake City .........84125
Seattle .........................98124

Vice President
in charge of branch

Albert D. Tinkelenberg
Clifford M. Kirtland, Jr.
William A. Fickling, Jr.
William H. Martin, III
Copeland D. Newbern
Castle W. Jordan
John C. Bolinger
Levere C. Montgomery

Monroe Kimbrel
Kyle K. Fossum

Robert H. Strotz
John Sagan
Jordan B. Tatter

Robert P. Mayo
Daniel M. Doyle

Armand C. Stalnaker
William B. Walton
G. Larry Kelley
James F. Thompson
Frank A. Jones, Jr.

Lawrence K. Roos
Donald W. Moriarty

Stephen F. Keating
William G. Phillips
Patricia P. Douglas

Mark H. Willes
Thomas E. Gainor

Harold W. Andersen
Joseph H. Williams
A. L. Feldman
Christine H. Anthony
Durward B. Varner

Roger Guffey
Henry R. Czerwinski

Irving A. Mathews
Gerald D. Hines
A. J. Losee
Gene M. Woodfin
Pat Legan

Ernest T. Baughman
Robert H. Boykin

Joseph F. Alibrandi
Cornell C. Maier
Caroline L. Ahmanson
• Loran L. Stewart
Wendell J. Ashton
Lloyd E. Cooney

John J. Balles
John B. Williams

Hiram J. Honea
Charles B. East
F. J. Craven, Jr.
Jeffrey J. Wells
George C. Guynn

William C. Conrad

John F. Breen
Donald L. Henry
L. Terry Britt

John D. Johnson

Wayne W. Martin
William G. Evans
Robert D. Hamilton

Fredric W. Reed
J. Z. Rowe
Carl H. Moore

Richard C. Dunn
Angelo S. Carella
A. Grant Holman
Gerald R. Kelly

* A dditional offices of these B anks are located at L ew isto n , M aine 042 4 0 ; W indsor L o ck s, C o n n ecticu t 0 6 0 9 6 ; C ran fo rd ,
N ew Jersey 0 7 0 1 6 ; Jerich o , N ew Y ork 11753; U tica at O risk an y , N ew Y ork 13424; C o lu m b u s, O h io 4 3 2 1 6 ; C o lu m b ia, South
C aro lin a 292 1 0 ; C h arle sto n , W est V irginia 2 5 3 1 1 ; Des M o in es, Iow a 503 0 6 ; In d ian ap o lis, In d ian a 4 6 2 0 4 ; and M ilw au k ee,
W isconsin 5 3 202.




A 74

Federal Reserve Board Publications
A vailable from Publications S ervices , D ivision o f A d ­
m inistrative S ervices, B oard of G overnors of the F ed­
eral R eserve System , W ashington, D .C . 20551. W here
a charge is indicated, rem ittance should accom pany

request and be made p a y a b le to the order of the B oard
of G overnors of the Federal R eserve System . R em it­
tance from foreign residents should be drawn on a U .S.
bank. (Stam ps and coupons are not a ccepted.)

The

B ank Credit-Card and C heck-C redit Pl a n s . 1 968.
102 pp. $1.00 each; 10 or more to one address,
$ .8 5 each.
S urvey of C hanges in F amily Finances . 1 968. 321
pp. $ 1 .0 0 each; 10 or more to one address, $ .8 5
each.
Report of the Joint Treasury -Federal Reserve
S tudy of the U .S . Government S ecurities
M arket . 1 969. 4 8 pp. $ .2 5 each; 10 or more to
one address, $.20 each.
Joint Treasury-Federal Reserve S tudy of the
G overnment S ecurities M arket: S taff S tud ­
ies— P art 1. 1 970. 8 6 pp. $ .5 0 each; 10 or m ore
to on e ad d ress, $ .4 0 each . P art 2 . 19 7 1 . 153 pp.
and P art 3. 1973. 131 pp. Each v o lu m e $ 1 .0 0 ;

Federal Reserve S ystem— Purposes
Functions . 1 9 7 4 . 125 pp.

and

A nnual R eport.
Federal Reserve B ulletin . M on th ly. $ 2 0 .0 0 per
year or $ 2 .0 0 each in the U n ited S tates, its p o ss e s­
sio n s, C anada, and M ex ico ; 10 or m ore o f sam e
issu e to o n e ad d ress, $ 1 8 .0 0 per year or $ 1 .7 5
each . E lsew h ere, $ 2 4 .0 0 per year or $ 2 .5 0 each .
B anking and M onetary Statistics, 1 9 1 4 -1 9 4 1 .
(R eprint o f Part 1 o n ly ) 1 976. 6 8 2 pp. $ 5 .0 0 .
B anking and M onetary S tatistics, 1 9 4 1 -1 9 7 0 .
1 9 7 6 . 1 ,1 6 8 pp. $ 1 5 .0 0 .
A n n u a l S t a t is t ic a l D ig e st, 1 9 7 1 - 7 5 . 1 9 76. 3 3 9 pp.
$ 4 .0 0 per co p y for each paid subscription to F ed ­
eral R eserv e Bulletin. All oth ers, $ 5 .0 0 each .
A n n u a l S t a t is t ic a l D ig e st, 1 9 7 2 -7 6 . 1 9 77. 38 8 pp.
$ 1 0 .0 0 per co p y .
A nnual S tatistical D igest, 1 9 7 3 - 7 7 . 1978. 361 pp.
$ 1 2 .0 0 per co p y .
F e d er a l R e se r ve C h a r t B o o k . Issued four tim es a
year in February, M a y , A u g u st, and N ovem b er
Subscription in clu d es on e issu e o f H istorical Chart
B o o k . $ 7 .0 0 per year or $ 2 .0 0 each in the U nited
States, its p o ss e ss io n s, C anada, and M e x ic o . E lse ­
w h ere, $ 1 0 .0 0 per year or $ 3 .0 0 each .
H isto rica l C h a r t B o o k . Issued annually in Sept.
Subscription to Chart B ook in clu d es on e issu e.
$ 1 .2 5 each in the U nited S tates, its p o sse ss io n s,
Canada, and M ex ico ; 10 or m ore to on e address,
$ 1 .0 0 each . E lsew h ere, $ 1 .5 0 each .
C apital M arket D evelopments. Weekly. $ 1 5 .0 0 per
year or $ .4 0 each in the United States, its posses­
sions, Canada, and Mexico; 10 or more of same
issue to one address, $ 1 3 .5 0 per year or $ .3 5 each.
Elsewhere, $ 2 0 .0 0 per year or $ .5 0 each.

S elected Interest and E xchange R ates— W eekly
S eries of C harts. Weekly. $ 1 5 .0 0 per year or
$ .4 0 each in the United States, its possessions,
Canada, and Mexico; 10 or more of same issue
to one address, $ 1 3 .5 0 per year or $ .3 5 each.
Elsewhere, $ 2 0 .0 0 per year or $ .5 0 each.
T he Federal Reserve A ct , as am ended through D e ­
cem ber 1 9 7 6 , w ith an app en d ix con tain in g p rovi­
sio n s o f certain other statutes affectin g the Federal
R eserv e S y stem . 3 0 7 pp. $ 2 .5 0 .

Regulations of the B oard of Governors of the
Federal Reserve S ystem
Published Interpretations of the B oard of Gov­
ernors, as of June 3 0 , 1978. $ 7 .5 0 .
Industrial Production— 19 7 6 Edition . 1 977. 3 0 4
pp. $ 4 .5 0 each ; 10 or m ore to on e address, $ 4 .0 0
ea ch .




10 or m ore to on e ad d ress, $ .8 5 each .

O pen M arket Policies and Operating Proce­
dures— S taff S tudies . 1 9 7 1 . 2 1 8 pp. $ 2 .0 0
each; 10 or more to one address, $ 1 .7 5 each.
R eappraisal o f t h e F e d e r a l R eserve D isco u n t
M echanism. Vol. 1. 1 971. 2 7 6 pp. Vol. 2. 1971.
173 pp. Vol. 3. 1 9 7 2 . 2 2 0 pp. Each v o lu m e $ 3 .0 0 ;
10 or m ore to on e ad d ress, $ 2 .5 0 each .

T he Econometrics of Price D etermination Con ­
ference , O ctober 3 0 -3 1 , 1 9 7 0 , W ash in gton , D .C .
1 972. 39 7 pp. C loth ed . $ 5 .0 0 each; 10 or m ore
to on e ad d ress, $ 4 .5 0 each . Paper ed . $ 4 .0 0 each;
10 or m ore to on e ad d ress, $ 3 .6 0 each .

Federal Reserve S taff S tu dy : W ays to M oderate
Fluctuations in Housing C onstruction .
1972. 4 8 7 pp. $ 4 .0 0 each; 10 or more to one
address, $ 3 .6 0 each.
Lending Functions of the Federal R eserve
B anks . 1 973. 271 pp. $ 3 .5 0 each; 10 or more
to one address, $ 3 .0 0 each.
Improving the M onetary A ggregates (Report of the
Advisory Committee on Monetary Statistics).
1976. 43 pp. $ 1 .0 0 each; 10 or more to one
address, $ .8 5 each.
A n n u a l P e r c e n ta g e R a te T a b les (Truth in L en d ­
ing— R egu lation Z ) Vol. I (R egular T ransactions).
1969. 100 pp. Vol. II (Irregular T ransactions).
1969. 116 pp. E ach v o lu m e $ 1 .0 0 , 10 or m ore
of sam e v olu m e to on e address, $ .8 5 each .

Federal Reserve M easures of C apacity and C a ­
pacity U tilization . 1978. 4 0 pp. $ 1 .7 5 each,
10 or more to one address, $ 1 .5 0 . each.
T he B ank Holding Company M ovement to 1978:
A C ompendium . 1978. 2 8 9 pp. $ 2 .5 0 each, 10
or more to one address, $ 2 .2 5 each.
Improving the M onetary A ggregates: S taff
Papers. 1978. 170 pp. $ 4 .0 0 each, 10 or more
to one address, $ 3 .7 5 each.
1977 C onsumer C redit S urvey . 1978. 119 pp. $ 2 .0 0
each.

Federal Reserve B oard Publications

C onsumer E ducation P amphlets
(Short pam phlets suitable fo r classroom use. M ultiple
copies available without charge.)

A 75

Printed in Full in the Bulletin
Staff Studies shown under “ R e p rin ts.”
R e p r in t s

Consumer H andbook T o Credit Protection L aws
T he Equal Credit O pportunity A ct and . . . A ge
T he Equal Credit O pportunity A ct and . . .
Credit Rights in Housing
T he Equal Credit O pportunity A ct and . . .
D octors, L awyers , S mall R etailers , and
O thers W ho M ay Provide Incidental Credit
T he Equal Credit O pportunity A ct and .
W omen
F air Credit B illing
A G uide to Federal Reserve Regulations
How to File A Consumer Credit Complaint
If Y ou B orrow T o B uy S tock
If Y ou U se A C redit C ard
T ruth in Leasing
U .S . C urrency
W hat Truth in Lending M eans to Y ou

(Except fo r Staff P apers, Staff Studies, and som e
leading articles, m ost of the articles reprinted do not
exceed 12 p a g e s.)

M easures of S ecurity Credit. 1 2 /7 0 .
Revision of B ank Credit S eries. 1 2 /7 1 .
A ssets and Liabilities of Foreign B ranches of
U .S . B anks . 2 /7 2 .
B ank D ebits, D eposits, and D eposit T urnover—
Revised S eries . 7 /7 2 .
Y ields on N ewly Issued Corporate B o n d s . 9 /7 2 .
Recent A ctivities of Foreign B ranches of U .S .
B anks . 1 0 /7 2 .
Revision of Consumer Credit S tatistics . 1 0 /7 2 .
O ne -B ank Holding Companies B efore the 197 0
A mendments . 1 2 /7 2 .
Y ields on Recently O ffered Corporate B o nds .
5 /7 3 .

S taff S tudies
Studies and p a p ers on econom ic and financial subjects
that are of general interest.

Summaries Only Printed in the Bulletin
(L im ited supply of m im eographed copies of full text
available upon request fo r single copies.)

A n A nalysis of Federal R eserve A ttrition S ince
1 9 6 0 , by John T . R o se. Jan. 1 978. 4 4 pp.

Problems in A pplying D iscriminant A nalysis in
Credit Scoring M odels , by Robert A. E isen b eis.
Jan. 1 9 7 8 . 2 8 pp.

External C apital Financing Requirements of
Commercial B anks : 1 9 7 7 -8 1 , by G erald A. H anw eck and John J. M in g o . F eb. 1 978. 3 4 pp.

M ortgage B orrowing A gainst Equity in E xisting
Homes: M easurement , G eneration , and Im­
plications for Economic A ctivity , b y D avid F.
S eid ers. M ay 1 9 7 8 . 4 2 pp.

T he B ehavior of M ember B ank Required Reserve
R atios and the Effects of B oard A ction ,
1 9 6 8 - 7 7 , by T h om as D . S im p so n . July 1 978. 39
pp.

Foothold A cquisitions and B ank M arket S truc ­
ture , b y S teph en A. R h oad es and Paul S c h w e it­
zer, July 1 9 7 8 . 8 pp.

Interest R ate Ceilings and D isintermediation, by
Edward F. M c K e lv e y . Sept. 1978. 105 pp.
T he Relationship B etween R eserve R atios and
the M onetary A ggregates U nder R eserves
and Federal Funds R ate Operating T argets,
by K enneth J. K o p eck y . D e c . 1978. 58 pp.

T ie- ins B etween the G ranting of C redit and
S ales of Insurance by B ank Holding C ompa­
nies and O ther Lenders , by Robert A. E isen b eis
and Paul R. S ch w eitzer. F eb. 1978. 75 pp.




R ates on Consumer Instalment Lo a n s . 9 /7 3 .
N ew S eries for L arge M anufacturing Corpora­
tions . 1 0 /7 3 .
U .S . E n ergy Supplies and U ses, Staff E conom ic
Study by C layton G eh m an. 1 2 /7 3 .

T he S tructure of M argin C redit . 4 /7 5 .
N ew S tatistical S eries on Loan Commitments at
S elected L arge Commercial B an ks . 4 /7 5 .
Recent Trends in Federal B udget Policy . 7 /7 5 .
An A ssessm ent o f B ank H o ld in g Companies, Staff
E conom ic Study by R obert J. L aw ren ce and S a m ­
uel H. T a lley . 1/7 6 .
Industrial E lectric Power U se . 1 /7 6 .
Revision of M oney S tock M easures . 2 /7 6 .
S urvey of Finance Companies, 1 9 7 5 . 3 /7 6 .
Revised S eries for M ember B ank D eposits and
A ggregate Reserves. 4 /7 6 .
Industrial Production— 1 976 R ev isio n . 6 /7 6 .
Federal Reserve O perations in P ayment M echa­
nisms: A S ummary . 6 /7 6 .
N ew E stimates of C apacity U tilization : M a n u ­
facturing and M aterials . 1 1 /7 6 .
B ank H olding Company Financial D evelopments
in 1 976. 4 /7 7 .

S urvey of Terms of B ank L ending — N ew S eries .
5 /7 7 .

T he Commercial P aper M arket . 6 /7 7 .
Consumption and Fixed Investment in the Eco ­
nomic R ecovery A broad . 1 0 /7 7 .
Recent D evelopments in U .S . International
Transactions . 4 /7 8 .
T he Federal B udget in the 1 9 7 0 ’s. 9 /7 8 .
S ummary M easures of the D ollar ’s Foreign E x ­
change V alue . 10 /7 8 .
S urvey of Time and S avings D eposits at A ll C om­
mercial B anks , July 1978. 1 1 /7 8 .
Redefining the M onetary A ggregates. 1 /7 9 .
T he Economy in 1978. 1/7 9 .
C heck Processing at F ederal
Reserve O ffices. 2 /7 9 .

A76

Index to Statistical Tables
R eferen ces are to p a g e s A -3 through A -6 8 although the prefix “ A ” is o m itted in this index
A C C E P T A N C E S , b ankers, 11, 2 5 , 27
A gricultural lo a n s, com m ercial b anks, 18, 2 0 - 2 2 , 26
A ssets and lia b ilities ( See also F oreigners):
B an k s, by c la s se s , 16, 17, 18, 2 0 - 2 3 , 29
D o m estic finance co m p a n ie s, 39
Federal R eserve B a n k s, 12
N onfinancial corp oration s, current, 38
A u tom ob iles:
C onsum er instalm ent cred it, 4 2 , 43
P rod uction , 4 8 , 49
B A N K E R S b a la n ces, 16, 18, 2 0 , 2 1 , 22
(See also F oreign ers)
B anks for co o p era tiv es, 35
B on d s ( See also U .S . G overn m en t secu rities):
N ew issu es, 3 6
Y ie ld s, 3
Branch banks:
A ssets and liab ilities of foreign branches o f U .S .
banks, 5 6
L iab ilities o f U .S . banks to their foreign
b ranches, 23
B u sin e ss a ctiv ity , 4 6
B u sin e ss exp en d itu res on n ew plant and
eq u ip m en t, 38
B u sin ess loans (See C om m ercial and industrial
loan s)
C A P A C IT Y u tilization , 4 6
Capital accounts:
B an k s, by c la s se s , 16, 17, 19, 2 0
Federal R eserv e B an k s, 12
Central b an k s, 68
C ertificates o f d ep o sit, 2 3 , 27
C om m ercial and industrial loans:
C om m ercial b an k s, 15, 18, 2 3 , 2 6
W eek ly reporting b an k s, 2 0 , 2 1 , 2 2 , 2 3 , 24
C om m ercial banks:
A ssets and lia b ilities, 3 , 1 5 - 1 9 , 2 0 - 2 3
B u sin e ss lo a n s, 26
C om m ercial and industrial lo a n s, 2 4 , 26
C onsum er loan s h eld , by ty p e, 4 2 , 43
L oans sold outright, 23
N u m ber, by c la s se s , 16, 17, 19
R eal estate m ortgages h eld , by type of holder and
property, 41
C om m ercial paper, 3 , 2 4 , 2 5 , 2 7 , 39
C on d ition statem ents (See A ssets and liab ilities)
C on stru ction , 4 6 , 50
C onsum er instalm ent cred it, 4 2 , 43
C onsum er p rices, 4 6 , 51
C on su m p tion exp en d itu res, 5 2 , 53
Corporations:
Profits, ta x es, and d iv id en d s, 37
S ecu rity issu e s, 3 6 , 65
C ost o f liv in g (See C on su m er p rices)
Credit u n io n s, 2 9 , 4 2 , 43
C urrency and c o in , 5 , 16, 18
C urrency in circu lation , 4 , 14
C ustom er credit, stock m arket, 28
D E B IT S to d ep osit a cco u n ts, 13
D eb t (See specific types of d eb t or securities )




D em an d d ep osits:
A d justed , com m ercial b an k s, 13, 15, 19
B an k s, by c la s se s , 16, 17, 19, 2 0 - 2 3
O w n ership by in d ivid u als, partnerships, and
corp oration s, 25
Subject to reserve req u irem en ts, 15
T urnover, 13
D ep o sits (See also specific types of d eposits ):
B an k s, by c la s se s , 3 , 16, 17, 19, 2 0 - 2 3 , 29
Federal R eserve B an k s, 4 , 12
S ubject to reserve req u irem en ts, 15
T urnover, 13
D iscou n t rates at R eserve B an k s (See Interest rates)
D isco u n ts and ad van ces by R eserve B anks (See L oan s)
D iv id en d s, corporate, 37
E M P L O Y M E N T , 4 6 , 47
E u ro-d ollars, 27
F A R M m ortgage lo a n s, 41
Farmers H om e A d m in istration , 41
Federal a gen cy o b lig a tio n s, 4 , 11, 12, 13, 34
Federal and F ed erally sp on sored credit a g e n c ie s, 35
Federal finance:
D eb t subject to statutory lim itation and
types and ow n ersh ip o f gross d eb t, 32
R eceip ts and ou tla y s, 3 0 , 31
Treasury operating b alan ce, 3 0
Federal F in an cin g B an k , 3 0 , 35
Federal fu n d s, 3 , 6 , 18, 2 0 , 2 1 , 2 2 , 2 7 , 30
Federal h om e loan b an k s, 35
Federal H om e L oan M ortgage C o rp ., 3 5 , 4 0 , 41
Federal H ou sin g A d m in istration , 3 5 , 4 0 , 41
Federal interm ediate credit b an k s, 35
F ederal land b an k s, 3 5 , 41
F ederal N ational M ortgage A s s n ., 3 5 , 4 0 , 41
Federal R eserve Banks:
C on d ition statem ent, 12
D iscou n t rates (See Interest rates)
U .S . G overn m en t secu rities h eld , 4 , 12, 13, 3 2 , 33
F ederal R eserve cred it, 4 , 5 , 12, 13
Federal R eserve n o tes, 12
F ed erally sponsored credit a g e n c ie s, 35
F inance com p anies:
A ssets and lia b ilities, 39
B u sin e ss cred it, 39
L oan s, 2 0 , 2 1 , 2 2 , 4 2 , 43
P aper, 2 5 , 27
F inancial in stitu tion s, loan s to , 18, 2 0 - 2 2
F loat, 4
F low o f fu n d s, 4 4 , 45
Foreign:
Currency op eration s, 12
D ep o sits in U .S . b an k s, 4 , 12, 19, 2 0 , 2 1 , 22
E xch an ge rates, 68
Trade, 55
Foreigners:
C laim s o n , 6 0 , 6 1 , 6 6 , 67
L iab ilities to, 2 3 , 5 6 - 5 9 , 6 4 - 6 7
G O LD :
C ertificates, 12
S to ck , 4 , 55
G overnm ent N ational M ortgage A s s n ., 3 5 , 4 0 , 41
G ross national p roduct, 5 2 , 53

Federal Reserve Bulletin □ April 1979

H O U S IN G , n ew and ex istin g u n its, 50
IN C O M E , personal and nation al, 4 6 , 5 2 , 53
Industrial p rod u ction , 4 6 , 48
Instalm ent lo a n s, 4 2 , 43
Insurance co m p a n ie s, 2 9 , 3 2 , 3 3 , 41
Insured com m ercia l b an k s, 17, 18, 19
Interbank d ep o sits, 16, 17, 2 0 , 2 1 , 22
Interest rates:
B o n d s, 3
B u sin ess loan s o f b an k s, 26
F ederal R eserve B an k s, 3 , 8
F oreign co u n tries, 68
M o n ey and capital m arkets, 3 , 27
M o rtg a g es, 3 , 4 0
Prim e rate, com m ercial b an k s, 2 6
T im e and sa v in g s d ep o sits, m axim u m rates, 10
International capital transactions o f the U nited
States, 5 6 - 6 7
International org a n ization s, 5 6 - 6 1 , 6 4 - 6 7
In ven tories, 52
In vestm en t co m p a n ie s, issu es and a ssets, 37
In vestm en ts ( See also specific types of investm ents):
B an k s, by c la s se s , 16, 17, 18, 2 0 , 2 1 , 2 2 , 29
C om m ercial b an k s, 3 , 15, 16, 17, 18
Federal R eserv e B an k s, 12, 13
L ife insurance co m p a n ie s, 29
S a v in g s and loan a ss n s., 29
L A B O R fo rce, 4 7
L ife insurance co m p a n ies (See Insurance com p an ies)
L oans ( See also specific types of loans):
B an k s, by c la s se s , 16, 17, 18, 2 0 - 2 3 , 29
C om m ercial banks, 3 , 1 5 - 1 8 , 2 0 - 2 3 , 2 4 , 26
Federal R eserv e B an k s, 3 , 4 , 5 , 8 , 12, 13
Insurance co m p a n ie s, 2 9 , 41
Insured or guaranteed by U nited S tates, 4 0 , 41
S a v in g s and loan a sso cia tio n s, 29
M A N U F A C T U R IN G :
C apacity u tiliza tio n , 4 6
P rod uction , 4 6 , 4 9
M argin requirem ents, 28
M em ber banks:
A ssets and lia b ilities, by c la s se s , 16, 17, 18
B o rro w in g s at Federal R eserve B an k s, 5 , 12
N u m ber, by c la s se s , 16, 17, 19
R eserv e p o sitio n , b a sic, 6
R eserv e requirem ents, 9
R eserv es and related item s, 3 , 4 , 5 , 15
M in in g p rod u ction , 4 9
M o b ile h o m e sh ip m en ts, 50
M onetary a g g reg a tes, 3 , 15
M o n ey and capital m arket rates ( See Interest rates)
M o n ey stock m easu res and co m p o n e n ts, 3 , 14
M o n ey stock m easures and co m p o n e n ts, 3 , 14
M ortgages ( See R eal estate loan s)
M utual funds (See In vestm en t com p an ies)
M utual sa v in g s b anks, 3 , 10, 2 0 —2 2 , 2 9 , 3 2 , 3 3 , 41
N A T IO N A L b an k s, 17, 19
N ational d efen se o u tla y s, 31
N ational in co m e, 52
N o n m em b er b anks, 17, 18, 19
O P E N market transactions, 11
P E R S O N A L in co m e, 53
Prices:
C on su m er and w h o le sa le , 4 6 , 51
S tock m arket, 28
Prim e rate, com m ercial b an k s, 26
P rod uction , 4 6 , 4 8
Profits, corporate, 37




A77

R E A L estate loans:
B an k s, by c la s se s , 18, 2 0 - 2 3 , 2 9 , 41
L ife insurance co m p a n ie s, 29
M ortgage term s, y ie ld s, and a ctiv ity , 3 , 4 0
T yp e of holder and property m ortgaged , 41
R eserve p o sitio n , b a sic, m em ber b an k s, 6
R eserve requirem ents, m em ber b an k s, 9
R eserves:
C om m ercial b an k s, 16, 18, 2 0 , 2 1 , 22
Federal R eserve B an k s, 12
M em ber b anks, 3 , 4 , 5 , 15, 16, 18
U .S . reserve a ssets, 55
R esidential m ortgage lo a n s, 4 0
R etail credit and retail sa le s, 4 2 , 4 3 , 4 6
S A V IN G :
F low of fun d s, 4 4 , 45
N ational in com e a cco u n ts, 53
S a vin gs and loan a ss n s., 3 , 10, 2 9 , 3 3 , 4 1 , 4 4
S a vin gs d ep osits (See T im e d ep osits)
S a vin gs in stitu tion s, selected a ssets, 29
S ecu rities (See also U .S . G overn m en t secu rities):
Federal and F ederally sp on sored a g en cies, 35
F oreign transactions, 65
N ew issu es, 36
P rices, 28
Sp ecial D raw in g R igh ts, 4 , 12, 5 4 , 55
State and local g o v ts.:
D e p o sits, 19, 2 0 , 2 1 , 22
H old in gs o f U .S . G overn m en t secu rities, 3 2 , 33
N ew security issu e s, 36
O w n ership of secu rities o f, 18, 2 0 , 2 1 , 2 2 , 29
Y ield s of secu rities, 3
State m em ber b anks, 17
S tock m arket, 28
S tock s (See also S ecu rities):
N ew issu es, 36
P rices, 28
T A X receip ts, F ed eral, 31
T im e d ep o sits, 3 , 10, 13, 15, 16, 17, 19, 2 0 , 2 1 ,
2 2 , 23
T rade, fo reig n , 55
Treasury curren cy, Treasury ca sh , 4
Treasury d ep o sits, 4 , 12, 30
Treasury operating b alan ce, 30
U N E M PL O Y M EN T , 47
U .S . balance of p aym en ts, 54
U .S . G overnm ent balances:
C om m ercial bank h o ld in g s, 19, 2 0 , 2 1 , 22
M em ber bank h o ld in g s, 15
Treasury d ep osits at R eserve B a n k s, 4 , 12, 3 0
U .S . G overn m en t securities:
B ank h o ld in g s, 16, 17, 18, 2 0 , 2 1 , 2 2 , 2 9 ,
3 2 , 33
D ealer transactions, p o sitio n s, and finan cin g, 34
Federal R eserve B ank h o ld in g s, 4 , 12, 13, 3 2 , 33
F oreign and international h old in gs and
transactions, 12, 3 2 , 6 4
O pen m arket tran saction s, 11
O u tstan d in g, by type of secu rity, 3 2 , 33
O w n ersh ip , 3 2 , 33
R ates in m on ey and capital m arkets, 3 , 27
Y ie ld s, 3
U tilities, prod u ction , 4 9
V E T E R A N S A d m in istration , 4 0 , 41
W E E K L Y reporting b an k s, 2 0 - 2 4
W h o lesa le p rices, 4 6
Y IE L D S (See Interest rates;

A 78

The Federal Reserve System
Boundaries of Federal Reserve Districts and Their Branch Territories

Minneapolis
D etroit

Chicago
Omaha*

\ Sa/t Lake City
Denver

Kansas City

t. Louis

Louisvil

X orlotttj

IOklahoma City*
'n8eles

Dallas©
JacksM

Houston i

January 1978

LEGEND
—

Boundaries of Federal Reserve Districts

----- Boundaries of Federal Reserve Branch
Territories
Q

Board of Governors of the Federal
Reserve System




®

Federal Reserve Bank Cities

•

Federal Reserve Branch Cities
Federal Reserve Bank Facility